GEOX GROUP FY18 RESULTS PRESENTATION - FEBRUARY 27, 2019 - Geox.biz
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GEOX GROUP
FY18 RESULTS PRESENTATION
FEBRUARY 27, 2019
FY18 RESULTS|NET SALES BY
FY18 RESULTS| HIGHLIGHTS CHANNEL
TOTAL SALES:EURO 827.2 MILLION, -6.5% (-5.5% AT COSTANT FOREX) MAINLY EXPLAINED BY:
NETWORK OPTIMIZATION (80 NET CLOSURES IN FY2018)
PRUDENT DECISIONS TAKEN TO IMPROVE THE QUALITY AND PROFITABILITY OF THE WHOLESALE CHANNEL
UNUSUAL WEATHER CONDITIONS THAT AFFECTED MAINLY 1Q18 AND 3Q18 SALES
POSITIVE TREND IN 4Q18 (+2.0%) MAINLY THANKS TO A POSITIVE LFL DOS (+3.4%, OUT OF WHICH E -COM +22%)
EBITDA ADJ*: EURO 48.2 MILLION (EURO 74.0 MILLION IN 2017)
NET RESULT REPORTED: EURO -5.3 MILLION (EURO 15.4 MILLION IN 2017)
NET RESULT ADJ*: EURO 2 MILLION (EURO 22.8 MILLION IN 2017)
NET FINANCIAL POSITION POSITIVE AT EURO 2.3 MILLION (EURO -5.4 MILLION IN 2017)
PROPOSED DIVIDEND: 0.025€ (0.06€ IN 2017)
LTI: PROPOSED A NEW STOCK GRANT PLAN
*Excluding special items equal to Euro 9.8 million and related to network optimization and support and organizational review
2FY18 RESULTS| NET SALES BY CHANNEL
WHOLESALE
NET SALES BY CHANNEL (MLN €) • SELECTIVE CANCELLATIONS DUE TO A PRUDENT
APPROACH TO CUSTOMERS AND REGIONS
• LOWER REORDERS DUE TO UNUSUAL WEATHER
FY17 FY18 885 827 • LOWER SALES OF OLD SEASON STOCK
• LOWER EARLY SS19 DELIVERIES IN 2018 (AS ALREADY
ANNOUNCED) IN LINE WITH THE INITIAL ORDER
401 370 362 359 COLLECTION TREND
• A SLIGHTLY NEGATIVE IMPACT FROM FOREX
121 98
WHOLESALE FRANCHISING DOS TOTAL FRANCHISING
• PLANNED NETWORK OPTIMIZATION (55 NET CLOSURES
-7.8% -19.0% -0.9% -6.5% AND CONVERSION TO DOS IN 2018, APPROX. 11% OF
-6.6% c.FX -18.3% c.FX 0.1% c.FX -5.5% c.FX THE FRANCHISING NETWORK AS AT DEC. 2017)
• 4Q18 BENEFITED FROM THE RECOVERY OF SOME
ORDERS POSTPONEMENT
NET SALES BY CHANNEL (IN %) • LFL SLIGHTLY WORSE COMPARED TO DOS IN FY18.
POSITIVE PERFORMANCE IN 4Q18
*[FY17]
• FRANCHISING RECAPTURE IS NOT PART OF THE
STRATEGY
DOS 43% WHOLESALE 45%
[41%*] [45%*]
DOS
• DOS FLAT AT COSTANT CURRENCY
• LFL -2.3% IN FY18 MAINLY AFFECTED BY UNSEASONAL
WEATHER IN 1Q AND 3Q. POSITIVE PERFORMANCE IN
4Q18 (+3.4%)
FRANCHISING 12%
[14%*] • SLIGHTLY POSITIVE SPACE EFFECT
3FY18 RESULTS|L4L DOS AND CURRENT TRADING
LFL PERFORMANCE – 2018 AND CURRENT TRADING - LFL PERFORMANCE FY18
• ITALY: LFL SUBSTANTIALLY IN LINE WITH GROUP
+3.4% IN 4Q18 AVERAGE IN FY18. POSITIVE PERFORMANCE IN 4Q18
SLIGHTLY (MID-SINGLE DIGIT)
POSITIVE • EUROPE: LFL SUBSTANTIALLY IN LINE WITH GROUP
AVERAGE IN FY18. POSITIVE PERFORMANCE IN 4Q18
(LOW TO MID-SINGLE DIGIT)
• NORAM: LFL POSITIVE (LOW TO MID SINGLE DIGIT) IN
FY18 AND 4Q18
-2.3% • ROW: LFL SLIGHTLY POSITIVE IN FY18 (SUBSTANTIALLY
FLAT IN 4Q18)
-4.7% -4.3%
• DOS WEB (GEOX.COM): +12% IN FY18
LFL BY
QUARTER
-8.9%
1Q18 1H18 9M18 FY18 W1-W8 2019
+0.5% IN 2H18
•1Q18: LOWER SALES OF OLD SEASON STOCK (DRIVEN BY THE REDUCTION IN
• INVENTORIES)
1Q18: LOWER SALES IN JANSTOCK
OF OLD SEASON AND FEB AND UNSEASONAL
(DRIVEN WEATHERINCONDITIONS
BY THE REDUCTION IN MARCH
INVENTORIES) IN JAN AND
FEB AND UNSEASONAL WEATHER CONDITIONS IN MARCH
• 2Q18: IMPROVING TREND FROM MID –APRIL THANKS TO MORE USUAL WEATHER
CONDITIONS
• 2Q18: IMPROVING TREND FROM MID –APRIL THANKS TO THE RECOVERY IN WEATHER CONDITIONS
• 3Q18: POSITIVE PERFORMANCE IN JULY AND AUGUST, BUT A VERY TOUGH
• 3Q18: POSITIVE PERFORMANCE
SEPTEMBER DUE IN TO
JULY AND AUGUST,
UNUSUAL WEATHER BUT A VERY THAT
CONDITIONS TOUGH SEPTEMBER
DETERMINED DUE TO
A LATE
UNSEASONAL WEATHER
START CONDITIONS
OF THE FALL THAT DETERMINED
WINTER SEASON A LATE START OF THE FALL WINTER SEASON
• 4Q18: POSITIVE • TREND
4Q18: NOTWITHSTANDING A TOUGH COMPARISON
POSITIVE TREND NOTWITHSTANDING (LFL
A TOUGH +1.1% IN 4Q17)
COMPARISON (LFL WITH
+1.1%AINFLAT
TREND IN OCTOBER, ANDWITH
4Q17) A POSITIVE
A FLATPERFORMANCE IN NOVEMBER
TREND IN OCTOBER, AND AND DECEMBER.
A POSITIVE PERFORMANCE IN
DOS WEB +22%, DOS B&M +2.1%
NOVEMBER AND DECEMBER
4FY18 RESULTS| NET SALES BY REGION
NET SALES BY REGION (MLN €) ITALY
• PLANNED NETWORK OPTIMIZATION (18 NET CLOSURES IN
FY17 FY18 885 FY18)
827
• 1Q18 AND 3Q18 IMPACTED BY UNSEASONAL WEATHER
CONDITIONS; POSITIVE PERFORMANCE IN 4Q18
383 355 EUROPE
258 240
187 182 • PLANNED NETWORK OPTIMIZATION (25 NET CLOSURES IN
57 51 FY18)
• PERFORMANCE AFFECTED (AS FOR ITALY) BY
ITALY EUROPE NORAM ROW TOTAL UNSEASONAL WEATHER CONDITIONS IN MARCH AND
SEPTEMBER; FLATTISH PERFORMANCE IN 4Q18
-6.9% -7.4% -11.2% -2.7% -6.5%
-6.9% c.FX -7.3% c.FX -7.2% c.FX +0.9% c.FX -5.5% c.FX NORAM
• CLEANING UP OF THE EXISTING WHOLESALE DISTRIBUTION
• NETWORK OPTIMIZATION (5 NET CLOSURES IN FY18); STRONG
COMMITMENT TO RE-FOCUS BUSINESS ON THE MOST
APPROPRIATE LOCATIONS
NET SALES BY REGION (IN %)
*[FY17] ROW
ITALY 29% ROW 22%
[29%*] [21%*] • POSITIVE PERFORMANCE AT COSTANT FOREX
NOTWITHSTANDING NETWORK OPTIMIZATION (UNDER
DISTRIBUTION AGREEMENT SHOPS: 30 NET CLOSURES IN FY
18)
NORAM 6% • LFL AND WHOLESALE SLIGHTLY POSITIVE
[6%*]
EUROPE 43%
[44%*]
5FY18 RESULTS|NET SALES BY PRODUCT
NET SALES BY PRODUCT (MLN €) NET SALES BY PRODUCT (IN %)
*[FY17]
FY17 FY18
APPAREL10%
885 [10%*]
797 744 827
88 83
FOOTWEAR APPAREL TOTAL
FOOWEAR 90%
-6.6% -5.3% -6.5%
-5.7% c.FX -3.8% c.FX -5.5% c.FX
[90%*]
YEARLY TREND FOR FOOTWEAR AND APPAREL MAINLY IMPACTED BY: 1) NETWORK OPTIMIZATION 2) SELECTIVE APPROACH TO WHOLESALE CUSTOMERS
3) UNSEASONAL WEATHER CONDITIONS
DOUBLE-DIGIT GROWTH FOR APPAREL IN 4Q18, MAINLY THANKS TO: 1) A POSITIVE PERFORMANCE (ESPECIALLY WOMEN) OF THE NEW COLLECTION 2) AN EASIER
COMPARISON BASE
6FY18 RESULTS|GEOX SHOPS NETWORK
RETAIL NETWORK RETAIL NETWORK
– # GEOX SHOPS - GEOX SHOPS EVOLUTION IN 2018
DECEMBER 31, 2018 DECEMBER 31, 2017
NET
GEOX SHOPS of which DOS GEOX SHOPS of which DOS OPENINGS OPENINGS CLOSINGS
ITALY 286 143 304 137 ITALY (18) 5 (23)
EUROPE 285 154 310 155 EUROPE (25) 8 (33)
NORTH AMERICA 37 37 42 42 NORTH AMERICA (5) 2 (7)
RoW* 407 110 439 105 RoW* (32) 42 (74)
TOTAL 1,015 444 1,095 439 TOTAL (80) 57 (137)
*Includes Under Distribution Agreement Shops (138 as of December 2018 vs 168 as of December
2017) which are shops opened under license by partners in the Middle East and in the Far East.
Sales from these shops are not included in the franchising channel
X STORE ROLL OUT
PLAN UPDATE
136 X STORE AT THE END
OF FY18 FROM 33 AT THE
END OF FY17
7FY18 RESULTS|SOCIAL MEDIA AND EDITORIALS
FACEBOOK INSTAGRAM EDITORIALS
FOLLOWERS: 1.5 MILLION FOLLOWERS: > 210 k TOT. EDITORIAL PAGES: +80%
↑46 k (+30%) in the last 6 months
FULL PAGES: +50%
WEEKLY TOTAL REACH: 1.8 MILLION
POSTS: 405 in the last 6 months
with an AVG number of Likes of COVER PAGES: +65%
WEEKLY TOTAL IMPRESSIONS:3.7 MILLION
1.200
FIRST TIME IN FASHION
POSTS/3 MONTHS: 95 with an AVG number MAGAZINES LIKE
of Likes of 1.400 AVG REACH/POSTS: 103K WALLPAPER & VOGUE
AVG REACH/POSTS: 200 K AVG IMPRESSIONS: 1 MILLION a FORMULA E GRANTED ALSO
Week THE PRESENCE IN SPORT
MAGAZINES AND NEWSPAPERS
AVG IMPRESSIONS/POSTS: 300 K
(last 3 months) AVG ENGAGEMENT RATE Rate:
0.68%
AVG DAILY NEW LIKES: 187
FIRST POSITIVE SIGNS
ALSO FROM THE GEOX
DRAGON INSTAGRAM
PROFILE
*Data as of January 2019 8FY18 RESULTS|INCOME STATEMENT
(EURO MLN) FY18 IN % FY17 IN % CHG
NET SALES 827.2 100% 884.5 100% -6.5% • GROSS MARGIN INCREASE (+170 BPS) MAINLY THANKS TO SPECIFIC
MEASURES ON SUPPLY CHAIN EFFICIENCY AND TO CHANNEL MIX
COST OF SALES (413.5) (50.0%) (456.9) (51.7%) -9.5% (HIGHER WEIGHT OF RETAIL SALES WHICH HAVE A HIGHER GROSS
GROSS PROFIT MARGIN)
413.8 50.0% 427.6 48.3% -3.2%
SELLING & DISTRIBUTION (46.4) (5.6%) (47.3) (5.3%) -1.8% • G&A TREND REFLECTED MAINLY THE HIGHER COSTS RELATED TO
DOS PERIMETER INCREASE AND LOGISTICS
G&A (325.5) (39.3%) (317.6) (35.9%) 2.5%
A&P • A&P UP BY EURO 4.1 MILLION TO SUPPORT SALES AND BRAND
(26.7) (3.2%) (22.6) (2.6%) 18.1%
IMAGE
EBIT ADJ 15.2 1.8% 40.2 4.5% -62.2%
• SPECIAL ITEMS RELATED TO NETWORK OPTIMIZATION AND
SPECIAL ITEMS (9.8) (1.2%) (10.0) (1.1%) -1.5% ORGANIZATIONAL REVIEW AT EURO 9.8 MILLION
EBIT 5.4 0.6% 30.1 3.4% -82.2%
• TAXES AT EURO 5.9 MILLION. IT IS IMPORTANT TO UNDERLINE THAT
NET FINANCIAL EXPENSES (4.8) (0.6%) (3.4) (0.4%) 41.3% THE GROUP DID NOT RECOGNIZE APPROX. 1.6 MILLION OF
DEFERRED TAX ASSETS FOR CERTAIN LOSS-MAKING SUBSIDIARIES
EBT 0.6 0.1% 26.8 3.0% n.m. ABROAD WHICH CURRENTLY DO NOT SHOW SIGNS OF A FAST
INCOME TAXES RECOVERY.
(5.9) (0.7%) (11.4) (1.3%) -48.5%
TAX RATE n.m. - 42.5% - - • NET RESULT ADJUSTED FOR SPECIAL ITEMS AT EURO 2 MILLION
NET RESULT (5.3) (0.6%) 15.4 1.7% n.m.
EBITDA 38.3 4.6% 64.0 7.2%
EBITDA ADJ 48.2 5.8% 74.0 8.4%
9FY18 RESULTS|BALANCE SHEET
(EURO MLN) DEC 18 DEC 17 CHG
INTANGIBLE ASSETS 50.2 52.1 (1.9)
TANGIBLE ASSETS 65.8 61.3 4.5
OTHER FIXED ASSETS, NET 39.1 42.6 (3.5)
TOTAL FIXED ASSETS 155.1 156.0 (0.9)
OPERATING WORKING CAPITAL 209.1 226.3 (17.2)
CONFIRMED THE SOLID POSITION OF THE GROUP:
OTHER CURRENT ASSETS
(LIABILITIES), NET (17.7) (19.6) 1.9
POSITIVE NET FINANCIAL POSITION
INVESTED CAPITAL 346.5 362.7 (16.2) EQUITY AT EURO 341 MILLION EURO, EQUAL TO 98% OF THE INVESTED CAPITAL
NET FINANCIAL POSITION (CASH) (2.3) 5.4 (7.7)
STAFF SEVERANCE AND RISK
FUND 8.1 7.8 0.3
SHAREHOLDERS’EQUITY 340.8 349.5 (8.7)
INVESTED CAPITAL 346.5 362.7 (16.2)
10FY18 RESULTS|OPERATING WORKING CAPITAL
OPERATING WORKING CAPITAL EVOLUTION OPERATING WORKING CAPITAL
(EURO MILLION) DETAILS (EURO MILLION)
252
218 214 227 226
194 209
192 (EURO MLN) FY18 FY17* CHG
INVENTORIES 312.1 283.2 28.8
ACCOUNT RECEIVABLES 133.1 162.5 (29.4)
ACCOUNT PAYABLES (236.0) (219.4) (16.6)
OP. WORKING CAPITAL 209.1 226.3 (17.2)
2011 2012 2013 2014 2015 2016 2017 2018 % ON SALES 25.3% 25.6% -30 BPS
*Data restated in compliance with IFRS 15
% OF
24.5% 23.8% 28.3% 27.5% 22.2% 28.0% 25.6% 25.3%
SALES
OPERATING WORKING CAPITAL AS A PERCENTAGE OF SALES DECREASED TO 25.3% IN DEC 2018 (25.6% AS AT DEC 2017)
THIS IMPROVEMENT IS DUE TO THE PERFORMANCE OF RECEIVABLES (IN LINE WITH SALES TREND IN WHOLESALE AND FRANCHISE) AND PAYABLES THAT MORE THAN
COMPENSATED THE INCREASE IN INVENTORIES
11FY18 RESULTS|CASH FLOW STATEMENT
(EURO MLN) FY18 FY17
NET RESULT (5.3) 15.4
DEPRECIATION & AMORTIZATION 33.0 33.8
OTHER NON CASH ITEMS 1.4 10.1
FUNDS FROM OPERATIONS 29.1 59.3
CHANGE IN OPERATING WORKING CAPITAL 7.1 23.2
CHANGE IN OTHER CURRENT ASSETS, NET (5.0) 16.1 NET FINANCIAL POSITION POSITIVE MAINLY THANKS TO:
OPERATING CASH FLOW 31.2 98.6 • A STRICT CONTROL OF THE WORKING CAPITAL
CAPITAL EXPENDITURES (37.4) (30.8) • THE FAIR VALUE ADJUSTEMENT OF DERIVATIVE
DISPOSALS CONTRACTS.
0.5 4.4
CAPITAL EXPENDITURES, NET (36.9) (26.5) AND NOTWITHSTANDING:
FREE CASH FLOW (5.7) 72.1
• CAPEX AT EURO 37.4 MILLION (30.8 MILLION IN FY17)
DIVIDENDS (15.6) (5.2) MAINLY RELATED TO DOS (NEW OPENINGS
CHANGE IN NET FINANCIAL POSITION (21.3) 66.9 /RESTYLINGS) AND IT INVESTMENTS
• DIVIDENDS PAYMENT FOR EURO 15.6 MILLION (5.2 IN
2017)
NET FINANCIAL POSITION PRIOR TO FAIR VALUE ADJ, BEG.
OF THE PERIOD 15.1 (51.6)
CHANGES IN NET FINANCIAL POSITION (21.3) 66.9
EFFECT OF TRANSLATION DIFFERENCES
(0.7) (0.1)
NET FINANCIAL POSITION PRIOR TO FAIR VALUE ADJ, END
OF THE PERIOD (6.8) 15.1
FAIR VALUE ADJUSTEMENT OF DERIVATIVE CONTRACTS 9.1 (20.5)
NET FINANCIAL POSITION 2.3 (5.4)
12FY18 RESULTS|OUTLOOK 2019
• INITIAL ORDER COLLECTION FOR THE UPCOMING 2019 SPRING/SUMMER SEASON (AS REPORTED LAST NOVEMBER) SHOWS A REDUCTION OF -9.1% IN THE
WHOLESALE CHANNEL, WITH THE INDUSTRIAL MARGIN INCREASING IN LINE WITH EXPECTATIONS. OVERALL, THE RATIONALIZATION PROCESS FOR THE
WHOLESALE CHANNEL, AIMED AT SUPPORTING THE GROUP’S SOLIDITY AND IMAGE, IS EXPECTED TO CONTINUE IN 2019, ALTHOUGH THIS WILL HAVE LESS OF
AN IMPACT ON TURNOVER THAN IN THE PREVIOUS YEAR. THESE EXPECTATIONS SHOULD NONETHELESS BE CONFIRMED BY THE PERFORMANCE OF INITIAL
ORDER COLLECTION FOR THE 2019 AUTUMN/WINTER COLLECTION, CURRENTLY ONGOING, AND BY THE ASSUMPTION THAT THERE WILL BE MORE REORDERS
DURING THE SEASONS.
• THE MONO-BRAND STORE NETWORK IS EXPECTED TO REMAIN SUBSTANTIALLY STABLE: DIRECTLY-OPERATED STORES ARE EXPECTED TO CARRY GREATER
WEIGHT, THANKS TO A NUMBER OF TARGETED OPENINGS (ESPECIALLY IN CHINA) AND THE CONVERSION OF A LIMITED NUMBER OF STORES THAT WERE
PREVIOUSLY FRANCHISED, AS STATED IN THE BUSINESS PLAN THAT WILL MORE THAN COMPENSATE FOR THE CLOSURES OF A NUMBER OF NON-
PERFORMING DOS.
• DOS PERFORMANCE TREND SLIGHTLY POSITIVE IN JAN-FEB ‘19, FUELED BY ONLINE. RETAIL EXCELLENCE PROGRAM’S IMPACT EXPECTED TO GRADUALLY
GAIN TRACTION THROUGH THE YEAR
• THE ONGOING RESTYLING PLAN WILL CONTINUE, AIMED AT IMPROVING PERFORMANCE, WITH THE INTRODUCTION OF NEW WINDOW DISPLAYS, NEW
ASSORTMENT STRATEGIES AND NEW POLICIES FOR IN-STORE VISUALS.
• RELEVANT PROJECTS AND INVESTMENTS IN IT WILL ALSO CONTINUE, IN LINE WITH THE BUSINESS PLAN, IN ORDER TO SUPPORT THE BUSINESS AND
GUARANTEE A TRULY OMNICHANNEL OPERATING MODEL.
• THE INITIATIVES TO FURTHER INCREASE PRODUCTIVITY, ENSURE A LEAN ORGANIZATION AND BOOST OPERATING EFFICIENCY, WHICH HAVE ALREADY BEEN
SUCCESSFULLY IMPLEMENTED OVER THE LAST FEW YEARS, SHALL CONTINUE IN 2019.
• THE DIRECT E-COMMERCE CHANNEL IS EXPECTED TO CONTINUE TO GROW AT A STRONG PACE AND MAY ALSO BENEFIT FROM A NUMBER OF ADVANCED CRM
TOOLS THAT HAVE BEEN LAUNCHED, MADE POSSIBLE THANKS TO AN INCREASING DEDICATED IN-HOUSE TEAM.
• INVESTMENTS IN DIGITAL COMMUNICATION WILL CONTINUE IN ORDER TO ACCELERATE A MORE MODERN PERCEPTION OF THE BRAND
BASED ON THE ABOVE, MANAGEMENT WOULD LIKE TO HIGHLIGHT HOW, UNDER THESE CHANGED BUSINESS AND MARKET CONDITIONS, OVERALL SALES
PERFORMANCE INDICATORS BASED ON INITIAL ORDER COLLECTION IN THE WHOLESALE CHANNEL ARE GRADUALLY DIMINISHING IN IMPORTANCE. IN FACT
SALES WILL INCREASINGLY DEPEND ON ACTUAL PERFORMANCE OF RE-ORDERS AND REPLENISHMENT IN THE WHOLESALE CHANNEL THROUGHOUT THE
SEASON AND ON COMPARABLE SALES OF THE MONO-BRAND NETWORK, BOTH ONLINE AND OFFLINE
13ANNEXES
14NEW ACCOUNTING STANDARD IN FORCE FROM JAN 1 ST, 2019: IFRS 16
On January 13th, 2016, the IASB published IFRS 16 – Leases to replace IAS 17 – Leases, and the interpretations IFRIC 4 - Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases—
Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
The new standard provides a new definition of a lease and introduces criteria based on the control (right of use) of an asset in order to distinguish between lease contracts and service provision contracts, identifying
the following determining factors: identification of the asset, the right to replace the asset, the right to obtain substantially all economic benefits from using the asset and, lastly, the right to direct the use of the asset
underlying the contract.
The standard establishes a single model for the recognition and measurement of lease contracts for the lessee, which states that leased assets, including those under operating leases, must be recognised under
assets with a corresponding entry under financial payables. On the contrary, the standard does not include significant changes for lessors.
The standard came into force on January 1St, 2019, although it was possible to apply it earlier.
Geox completed a preliminary assessment of the potential impacts of applying the new standard at the transition date (January 1St, 2019). This process was broken down into various stages, including a complete
mapping of the contracts that could potentially include a lease and the analysis of these contracts in order to ensure that they include the main significant provisions for IFRS 16 purposes.
Geox chose to apply this standard retrospectively. However, it has recorded the accumulated effect of applying the standard on shareholders’ equity at January 1St, 2019, in accordance with IFRS 16, paragraphs
C7-C13. In particular, in relation to lease contracts that were previously classified as operating leases, Geox will record:
a) financial liability, equal to the current value of future residual payments at the transition date, discounted using the incremental borrowing rate applicable at the transition date for each contract;
b) right-to-use equal to the value of the financial liability at the transition date, net of any accrued income and prepaid expenses and accrued expenses and deferred income referring to the lease and recorded in the
balance sheet at the closing date of these financial statements.
The majority of Geox’s lease contracts refer to stores. The methods used to calculate the financial liabilities and rights of use are based on the analysis of the contractual terms and conditions of each lease,
including any renewal options.
The Group has estimated that adopting IFRS 16 at the date of transition, January 1St, 2019, will lead to rights of use for approximately Euro 327 million and a financial liability of approximately Euro 326 million being
recorded.
When applying IFRS 16, Geox intends to use the exemption permitted by paragraph 5(a) and paragraph 5(b) of IFRS 16 in relation to short-term leases for the contracts with a duration of less than one year and
contracts referring to low-value assets.
Adopting the new standards will affect some income statement entries, including Ebitda and Ebit, after accounting for the depreciation of the right of use and the interest on the liability that will replace the lease
costs.
Assuming that there are no variations to the number of stores in the network at 01/01/2019, this impact is currently estimated in the range of +8/+9 percentage points with regard to EBITDA margin, +0/+0.5 points
with regard to EBIT margin and +0/-0.5 points with regard to EBT margin.
15FY18 RESULTS|SHAREHOLDERS, GOVERNANCE AND CONTACTS
SHAREHOLDERS BOARD OF DIRECTORS
CHAIRMAN MARIO MORETTI POLEGATO
CEO MATTEO MASCAZZINI
MARKET
29% DEPUTY CHAIRMAN ENRICO MORETTI POLEGATO
LIR*
71% DIRECTOR CLAUDIA BAGGIO
DIRECTOR ALESSANDRO GIUSTI
DIRECTOR LIVIO LIBRALESSO
INDIPENDENT DIRECTOR ERNESTO ALBANESE
INDIPENDENT DIRECTOR LARA LIVOLSI
INDIPENDENT DIRECTOR FRANCESCA MENEGHEL
*MORETTI POLEGATO’S FAMILY INDIPENDENT DIRECTOR DUNCAN L. NIEDERAUER
INDIPENDENT DIRECTOR MANUELA SOFFIENTINI
2019 FINANCIAL CALENDAR INVESTOR RELATIONS – CONTACTS -
APRIL 16 SHAREHOLDERS’ MEETING
SIMONE MAGGI IR@GEOX.COM
MAY 10 1Q19 SALES TEL: +39 0423 282476 MOBILE:+39 335 1295349
JULY 30 1H19 RESULTS
LIVIO LIBRALESSO, GENERAL MANAGER –CORPORATE, CFO
NOVEMBER 14 9M19 SALES
GEOX S.P.A.
VIA FELTRINA CENTRO, 16 - 31044 BIADENE DI MONTEBELLUNA,
TREVISO (ITALY)
DISCLAIMER
FIGURES ARE REPORTED UNDER IAS/IFRS. CERTAIN STATEMENTS MADE IN THIS PRESENTATION ARE FORWARD LOOKING STATEMENT. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND ARE SUBJECT TO A
NUMBER OF RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY EXPECTED FUTURE RESULTS IN FORWARD LOOKING STATEMENTS. THIS ANNOUNCEMENT DOES NOT
CONSTITUTE AN INVITATION TO UNDERWRITE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE OR DISPOSE OF ANY GEOX S.P.A. SHARES. ANY REFERENCE TO PAST PERFORMANCE IS NOT A GUIDE TO FUTURE PERFORMANCE.
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