1Q15 Results

Transcription

1Q15 Results

1Q15 Results
UBS Latin American One on One
Equities Ideas Conference 2015
London
Galeria Melissa - 43 King Street, Covent Garden, London
Disclaimer
This presentation contains statements that can represent expectations
about future events or results. These statements are based on certain
suppositions and analyses made by the company in accordance with its
experience, with the economic environment and market conditions, and
expected future developments, many of which are beyond the company’s
control. Important factors could lead to significant differences between
real results and the statements on expectations about future events or
results, including the company’s business strategy, Brazilian and
international economic conditions, technology, financial strategy,
developments in the footwear industry, conditions of the financial
market, and uncertainty on the company’s future results from
operations, plans, objectives, expectations and intentions – among other
factors. In view of these aspects, the company’s results could differ
significantly from those indicated or implicit in any statements of
expectations about future events or results.
2
Agenda
Mission, Vision & Values
History
Dividends
Capital Markets
Plants
Capital Expenditure (CAPEX)
Footwear Sector
Brands & Marketing
Results
Guidance
3
Mission
To create democratic fashion, responding rapidly to the market’s
needs, generating an attractive return for the company and its
partners.
Being among the most profitable companies in the world and
the leading organizations in the sector.
Vision
Grendene Values
Profitability
Competitiveness
Innovation
Agility
Ethics
4
Profitability – EBIT margin
Source: Grendene / Bloomberg / Companies Financial Statements.
EBIT margin - 2012
EBIT margin - 2013
Grendene
19,3%
Belle International…
16,4%
EBIT margin - 2014
Grendene
18,3%
Grendene
15,6%
Arezzo
17,4%
14,1%
A. Grings S.A. (Piccadilly)
15,1%
Steve Madden Ltd
15,5%
Nike
13,2%
Arezzo
14,9%
Arezzo
15,4%
Deckers Outdoor Corp
12,9%
Steve Madden Ltd
14,6%
VF Corp (Timberland)
14,4%
Le Saunda Holdings
12,8%
Le Saunda Holdings
13,9%
14,2%
Steve Madden Ltd
12,6%
13,5%
Beira Rio
14,0%
11,7%
13,2%
Calçados Jacob (Kildare)
13,7%
Beira Rio
11,3%
Nike
13,2%
13,4%
Foot Locker Inc
11,3%
Usaflex
13,0%
Nike
12,9%
Weyco Group Inc
9,6%
12,7%
Le Saunda Holdings
11,7%
Alpargatas
9,3%
Usaflex
11,3%
Stella International
Daphne International…
Alpargatas
11,1%
8,2%
10,3%
Alpargatas
10,3%
Adidas
Weyco Group Inc
10,2%
Foot Locker Inc
10,2%
Rocky Brands Inc
5,5%
5,3%
6,6%
Foot Locker Inc
9,9%
Weyco Group Inc
9,2%
Beira Rio
9,3%
Adidas
8,7%
4,5%
9,1%
8,4%
Puma SE
4,3%
Adidas
6,2%
5,2%
Yue Yuen Industrial…
Rocky Brands Inc
6,0%
5,1%
Kingmaker Footwear…
2,8%
5,3%
Rocky Brands Inc
5,0%
2,3%
4,3%
Puma SE
3,4%
2,8%
0% 5% 10% 15% 20% 25%
Puma SE
2,4%
0% 5% 10% 15% 20% 25%
Usaflex
3,9%
Not available
0% 5% 10% 15% 20% 25%
5
Profitability – Net margin
Source: Grendene / Bloomberg / Companies Financial Statements.
Net margin - 2012
Net margin - 2013
Grendene
22,8%
13,2%
Le Saunda Holdings
12,6%
Arezzo
11,3%
Net margin - 2014
Grendene
19,8%
12,4%
Arezzo
11,5%
Grendene
22,0%
Le Saunda Holdings
14,1%
Beira Rio
10,9%
10,7%
10,6%
Arezzo
10,4%
Beira Rio
10,5%
Nike
10,0%
10,3%
8,9%
9,9%
Le Saunda Holdings
10,2%
8,5%
Steve Madden Ltd
9,7%
Steve Madden Ltd
10,0%
Steve Madden Ltd
8,4%
Nike
9,5%
Nike
9,8%
8,4%
Alpargatas
9,3%
9,4%
Alpargatas
7,5%
Beira Rio
9,3%
Alpargatas
9,0%
Foot Locker Inc
7,3%
9,1%
8,5%
7,3%
9,1%
8,0%
Weyco Group Inc
9,7%
5,9%
Usaflex
6,5%
Foot Locker Inc
6,6%
Weyco Group Inc
6,5%
Usaflex
6,4%
4,1%
6,4%
Weyco Group Inc
5,9%
3,5%
Foot Locker Inc
6,4%
5,7%
Rocky Brands Inc
3,4%
5,9%
5,5%
Adidas
3,4%
5,2%
Puma SE
Adidas
Rocky Brands Inc
3,9%
Adidas
3,5%
Puma SE
3,3%
2,1%
0% 5% 10% 15% 20% 25%
Rocky Brands Inc
Puma SE
4,7%
2,2%
3,2%
3,0%
0,2%
0% 5% 10% 15% 20% 25%
Usaflex
1,7%
Not available
0% 5% 10% 15% 20% 25%
6
EBIT and EBIT margin
- Main companies in Brazil
450
18,3%
19,3%
400
14,9%
333,4
350
17,4%
389,4
362,8
12,3%
317,5
334,6
300
R$ million
399,2
11,1%
352,5
10,3%
344,5
9,3%
250
200
Alpargatas
Arezzo
9,0%
172,8
150
100
208,4
13,0%
152,2
50
-
187,3
12,6%
10,5%
113,7
92,8
58,9
Grendene
16,7%
128,2
14,9%
148,5
148,1
2013
2014
15,4%
14,1%
16,2%
14,3%
2009
2010
Source: Grendene / Bloomberg
2011
2012
7
Profit and Net margin
- Main Companies in Brazil
600
22,0%
490,2
500
22,8%
429,0
19,8%
433,5
R$ million
400
19,5%
18,7%
300
272,2
312,4
306,3
13,7%
11,9%
307,4
Alpargatas
20,6%
Arezzo
310,0
305,4
280,0
9,0%
280,2
7,5%
9,3%
Grendene
200
6,5%
100
125,9
48,7
-
11,8%
2009
91,6
96,9
64,5
13,5%
11,3%
2010
2011
2012
11,3%
Source: Grendene / Bloomberg
110,6
11,5%
2013
112,8
10,7%
2014
8
Equity and return on equity
Year
(all amounts
in thousand of
reais)
Openning
equity1
Profit
Dividends
Reinvestment
Return on
equity
Closing
equity1
2005
733,566
200,116
81,181
118,935
27.3%
847,373
2006
847,373
257,343
128,261
129,082
30.4%
998,510
2007
998,510
260,508
119,724
140,784
26.1%
1,132,718
2008
1,132,718
239,367
109,000
130,367
21.1%
1,274,080
2009
1,274,080
272,211
110,000
162,211
21.4%
1,430,569
2010
1,430,569
312,399
121,738
190,661
21.8%
1,624,542
2011
1,624,542
305,446
219,526
85,920
18.8%
1,713,743
2012
1,713,743
429,003
293,503
135,500
25.0%
1,848,309
2013
1,848,309
433,540
300,057
133,483
23.5%
1,957,295
2014
1,957,295
490,244
220,814
269,430
25.0%
2,232,649
3,200,177
1,703,804
1,496,373
759.3%
Acumulado
1) Equity adjusted by the exclusion of the balance of dividends payable.
9
Timeline
70’s
 Grendene was founded in Farroupilha,
in the State of Rio Grande do Sul.
 Launch of the sandal collection with
the brand Melissa.
 Openning of own plant making molds.
80´s
90´s
 Launch of the Rider brand of sandals
for the men´s market.
 Openning of the factories in Ceará
State.
 Launch of the Grendha brand product
line for the women’s market.
10
Timeline
2000
2010
2011
2014
 Grendene started having common shares
(“GRND3”) negotiated at the Novo Mercado
of BM&FBOVESPA.
 Opening of Galeria Melissa in São Paulo
 New plant – Teixeira de Freitas (BA).
 Launch of the Ipanema, Zaxy and Cartago
brands.
Foto: A. Carreiro – Out/2004




New plant – Sobral (CE).
Opening of Galeria Melissa in New York.
Clube Melissa’s creation.
Creating of the subsidiary A3NP Indústria e
Comércio de Móveis. Partnership with
Philippe Starck.
 Opening of Casa Ipanema.
 Opening of Galeria Melissa in London.
11
Dividends Policy
R$ per share
74,8%
46,6%
0,363
0,976
0,998
0,730 71,1% 71,8% 0,736
44,6%
41,3% 39,9%
0,366
46,1%
0,405
0,140
7,0%
5,9%
4,7%
50,5%
%
The Company´s
dividend policy is
distribute, as
dividends – after
constitution of
the Legal Reserve,
and the Reserve
under the Bylaws
– that part of
Profit that does
not arise from tax
incentives.
Accumulated amount of deliberate dividends since IPO:
R$1,835,339,510.40 – representing R$6.103151 per share.
(Basis 300,720,000)
8,5%
8,4%
5,0%
4,8%
3,7%
0,224
6,0%
2008 2009 2010 2011 2012 2013 2014 1Q14 1Q15
Dividend per share
Payout (*)
Dividend yield (**)
(*) Payout: Dividend divided by profit after the allocations to legal reserves.
(**) Dividend yield: Dividend per share in the period divided by the weighted average price of the share, annualized.
12
Capital Markets
Share price
(closing)
Last 52 weeks
Date
Market capitalization
Market capitalization – Free float
Minimum
July 31, 2014
R$ 13.25
R$ 4.0 billion
R$ 1,0 billion
Maximim
March 13, 2015
R$ 18.00
R$ 5.4 billion
R$ 1.4 billion
Evolution GRND3 x IBOVESPA – Dec. 31, 2008 to Apr. 20, 2015
800
700
P/E – Share price divided by earnings per share in a 12-month period.
500
9.39
9.45
579,6
516,4
505,1
570,4
400
399,2
300
250,1
235,0
245,1
220,2
182,7
184,6
427,3
217,2
181,7
389,5
151,1
162,3
361,4
200
100
143,2
137,2
133,2
IBOVESPA
GRND3 - No dividend reinvest.
GRND3 - With dividend reinvest.
03/31/15
12/31/14
09/30/14
06/30/14
03/31/14
12/31/13
09/30/13
06/30/13
03/31/13
12/31/12
09/30/12
06/30/12
03/31/12
12/31/11
09/30/11
06/30/11
03/31/11
12/31/10
09/30/10
06/30/10
03/31/10
12/31/09
09/30/09
06/30/09
03/30/09
0
12/30/08
Basis 100 = Dec. 31, 2008
600
Price/Earnings (P/E):
12/31/08 – 5.32 12/31/09 – 10.99 12/31/14 –
12/31/10 – 8.97 12/31/11 – 7.57 03/31/15 –
12/31/12 – 11.56 12/31/13 – 12.55
13
Location of industrial plants
Production capacity:
250,000,000 pairs / year
Brazil
Fortaleza / CE
Sobral / CE
Crato / CE
Carlos Barbosa / RS
Farroupilha / RS
Employees:
Northeast region: 23,900
South region: 2,100
Teixeira de Freitas/BA
14
Capex (Property, plant and equipment and
intangible assets)
180,0
154,0
160,0
140,0
119,1
R$ million
120,0
100,0
80,0
63,6
60,0
40,0
35,433,039,4
24,2
38,6
22,5
20,0
1Q15
1Q14
2014
2013
2012
2011
2010
2009
2008
Investments increased the
production capacity.
15
Footwear sector
16
Footwear sector – World
Evolution of worldwide production
and consumption of footwear
25
In billion pairs
20
16,6
15
14,9
17,6
15,6
18,4
16,2
18,8
16,5
19,9
Footwear production by region
(pairs 2013)
2%
5%
6%
4% 1%
0%
Asia
Europe
North and Central America
South America
Africa
17,5
Middle East
Oceania
10
82%
5
Footwear consumption by
region (pairs 2013)
0
7%
2009
2010
Production
2011
2012
2013
3%
1%
9%
Source: IEMI / World Shoe Review 2014
Europe
North and Central America
Consumption
Brazil ranked third among the world’s largest
producers of footwear and fourth in
Consumption in 2013.
Asia
South America
Africa
17%
Middle East
Oceania
18%
45%
17
Footwear sector – Brazil
• World’s 3rd largest producer;
• About 8,100 producers;
• 353,000 direct employees;
• Production*: 846 million pairs in
2014;
• Exports: 130 million pairs to more
than 150 countries in 2014;
• Apparent consumption, Brazilian
domestic market*: 753 million
pairs and – 3.9 pairs per
capita/year in 2014.
The footwear sector in Brazil is characterized by
small companies and labor-intensive, with no
barriers to entry or exit.
Source: IEMI/RAIS/ABICALÇADOS/SECEX
* Figures estimated by Grendene based on Monthly Industrial Research on Physical
Manufactoring, prepared by the Brazilian Institute of Geography and Statistics (IBGE).
18
Footwear sector – Brazil
Million pairs
Production
2009
2010
2011
2012
2013
2014
814
894
819
864
900
846*
Imports
30
29
34
36
39
37
Exports
127
143
113
113
123
129
Apparent Consumption
717
780
740
787
816
753*
Per capita consumption (pairs)
3,8
4,1
3,8
4,1
4,2
3,9*
Source: IEMI / SECEX / ABICALÇADOS / (*) Estimated by Grendene
19
Grendene
CAGR (14/03): 4.9%
Var. (14/13): (5.2%)
Var. (1Q15/1Q14): 0.1%
Brazilian production
CAGR (14/03): (0.5%)
Var. (14/13): (6.0%)
1.000
900
800
897 916
894
877
830
808 816 814
864
819
900
250
846
216
205
200
Million pairs / year
700
600
500
400
300
200
185
166 169
146 146
145
150
121
150
130 132
100
50
47 47
100
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1Q14
1Q15
-
-
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: IEMI / Abicalçados / Grendene / * Estimated by Grendene
Brazilian footwaer sector x Grendene
20
ExportS: Brazil x Grendene
Grendene
CAGR (14/03): 6.2%
Change (14/13): 3.3%
Change (1Q15/1Q14): (21.3%)
250
60
55
211
189
190
180 177
143
150
127
113 113
123
130
100
50
48 48
50
166
51
40
40
52
45
43
32
30
20
29 28
27
16
12
36 32
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1Q14
1Q15
-
10
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1Q14
1Q15
200
Source: MDIC / Decex / Abicalçados / Grendene
Brazilian exports
CAGR (14/03): (3.4%)
Change (14/13): 5.4%
Change (1Q15/1Q14): (12.4%)
21
Brands & Marketing
Products that meet essential and
basic needs at low cost.
Products for all the income levels: A, B,
C, D and E – with very good cost x
benefit.
22
Marketing
Casa Ipanema – Rio de Janeiro/RJ – Brazil
Actress:
Sheron Menezzes
Mariana Rios
Fernanda Paes Leme
23
Galeria Melissa SP
Galeria Melissa NY
Galeria Melissa London
Pop Up Store Melissa
Miami / USA
Clube Melissa
Showroom Melissa
em Milão
24
25
Sales channels
Retail
Clube Melissa
Retail
Strong relationship
with trade
Retail
26
Results (in IFRS)
27
Main financial and economic indicators
R$ million
Change %
14-13
2008
2009
2010
2011
2012
2013
2014
Gross revenue
1,576.0
1,819.4
1,998.6
1,831.6
2,324.5
2,711.4
2,720.3
0.3%
8.4%
615.4
638.4
3.7%
Domestic
market
1,220.5
1,464.4
1,603.8
1,489.9
1,845.4
2,146.9
2,077.7
(3.2%)
7.2%
447.6
471.0
5.2%
355.5
355.0
394.8
341.7
479.1
564.5
642.6
13.8%
12.6%
167.8
167.4
(0.2%)
Net revenue
1,249.9
1,455.8
1,604.5
1,481.1
1,882.3
2,187.3
2,233.3
2.1%
8.9%
493.8
532.3
7.8%
Cost of sales
(731.2)
(889.7)
(953.3)
(840.5) (1,000.2) (1,193.6) (1,207.4)
1.2%
6.3%
(285.0)
(282.9)
(0.8%)
Gross profit
518.7
566.0
651.2
640.6
882.1
993.7
1,025.9
3.2%
12.6%
208.8
249.4
19.5%
EBIT
165.9
152.2
208.4
187.3
362.8
399.2
389.4
(2.5%)
20.7%
72.4
109.2
50.7%
EBITDA
191.5
178.5
236.6
216.2
394.5
435.9
436.9
0.2%
19.6%
83.0
122.5
47.6%
Net income
239.4
272.2
312.4
305.4
429.0
433.5
490.2
13.1%
12.5%
96.5
136.9
41.8%
Exports
Margin %
2008
2009
2010
2011
2012
2013
2014
Change
14-13
(p.p.)
CAGR
Change
14-09
(p.p.)
1Q14
1Q14
1Q15
Change %
1Q151Q14
1Q15
Change
1Q151Q14
(p.p.)
Bruta
41.5%
38.9%
40.6%
43.3%
46.9%
45.4%
45.9%
0.5
7.0
42.3%
46.9%
4.6
EBIT
13.3%
10.5%
13.0%
12.6%
19.3%
18.3%
17.4%
(0.9)
6.9
14.7%
20.5%
5.8
EBITDA
15.3%
12.3%
14.7%
14.6%
21.0%
19.9%
19.6%
(0.3)
7.3
16.8%
23.0%
6.2
Líquida
19.2%
18.7%
19.5%
20.6%
22.8%
19.8%
22.0%
2.2
3.3
19.5%
25.7%
6.2
28
Performance – CAGR, in the first quarters of the years
2008-2015
R$ million
Gross revenue
1Q08
331.4
Y-o-Y variation
Profit
41.0
Y-o-Y variation
R$ million
1Q08
1Q09
1Q10
1Q11
1Q12
1Q13
1Q14
1Q15
371.5
456.6
392.1
495.4
603.6
615.4
638.4
12.1%
22.9%
(14.1%)
26.3%
21.8%
2.0%
3.7%
64.3
46.9
63.5
82.1
102.3
96.5
136.9
56.8%
(27.1%)
35.4%
29.3%
24.6%
(5.7%)
41.8%
1Q09
1Q10
1Q11
1Q12
1Q13
1Q14
1Q15
Advertising expenses
17.4
18.7
18.4
18.7
30.0
32.9
26.4
23.9
Participation % - net
revenue
6.6%
6.1%
4.9%
5.9%
7.6%
6.8%
5.3%
4.5%
CAGR
9.8%
18.8%
CAGR
4.6%
29
Results (IFRS) – R$ million
Gross profit
300
COGS decrease (footwear) = R$ 2.1 mn / (0.7%)
38,5
250
208,8
R$ million
200
0,2
(0.1)
2,0
(0.7%)
0.1%
(4.7%)
Increase in
personnel
costs
Decrease in
other costs
0,1
249,4
A3NP
Gross profit 1Q15
7.8%
150
100
50
0
Gross profit - Increase in net Decrease in
1Q14
revenue
raw materials
30
EBIT
160
Increase in operating expenses = (R$ 3.9 mn) / 2.8%
140
(R$6.6 mm) / 5.0%
40,6
R$ million
120
1,7
R$2.7 mm
(8.3)
2,7
109,2
Other operating
income /
expenses
EBIT - 1Q15
100
80
72,4
60
40
20
0
EBIT - 1Q14
Increase in gross Advertising and
profit
publicity
Operating
expenses recurrent
31
Profit
160
140
9,8
(6.2)
Increase finance
result
Increase taxes
36,8
136,9
R$ million
120
100
96,5
80
60
40
20
Profit - 1Q14
Increase EBIT
Profit - 1Q15
32
Gross sales revenue (IFRS) – R$ million
Gross sales revenue
Total
CAGR (14-09): 8.4%
Change (14-13): 0.3%
Change (1Q15-1Q14): 3.7%
Gross sales revenue
Domestic market
CAGR (14-09): 7.2%
Change (14-13): (3.2%)
Change (1Q15-1Q14): 5.2%
2.711 2.720
CAGR (14-09): 12.6%
Change (14-13): 13.8%
Change (1Q15-1Q14): (0.2%)
2.324
1.819
1.999
2.147
1.832
Gross sales revenue
Exports
2.078
1.845
1.464
615
1.604
1.490
643
564
638
479
342
168
167
1Q15
395
1Q14
355
2014
2013
2012
2011
2010
2009
1Q15
1Q14
2014
2013
2012
2011
2010
1Q14
471
1Q15
2009
Note: CAGR 5 years
2014
2013
2012
2011
2010
2009
448
33
Market %
Gross sales revenue
19,5%
19,8%
18,7%
20,6%
20,8%
23,6%
27,3%
26,2%
Sales volume (pairs)
24,5%
23,4%
25,5%
70,9%
67,8%
71,7%
75,5%
76,6%
74,5%
2011
2012
2013
Exports
Domestic market
33,8%
66,2%
26,6%
73,4%
1Q15
28,3%
1Q14
32,2%
2014
29,1%
2010
73,8%
1Q15
1Q14
72,7%
2009
Domestic market
76,4%
2014
79,2%
2013
79,4%
2012
81,3%
2011
80,2%
2010
2009
80,5%
Exports
34
Improvement in the internal processes of
generte value.
EBIT / EBIT margin
CAGR (14-09): 20.7%
Change % (14-13): (2.5%)
Change % (1Q15-1Q14): 50.7%
399
363
EBITDA / EBITDA margin
389
CAGR (14-09): 19.6%
Change % (14-13): 0.2%
Change % (1Q15-1Q14): 47.6%
436
437
395
208
187
152
72
10,5%
13,0%
12,6%
19,3%
18,3%
17,4%
14,7%
237
83
20,5%
216
178
19,6%
16,8%
23,0%
1Q15
19,9%
1Q14
2011
21,0%
2014
14,6%
2013
14,7%
2012
12,3%
2010
1Q15
1Q14
2014
2013
83
2009
Note: CAGR 5 years
2012
2011
2010
2009
123
35
Production (million pairs)
Sales volume - Total
Sales volume –
Domestic market
CAGR (14-09): 4.3%
Change % (14-13): (5.2%)
Change % (1Q15-1Q14): 0.1%
CAGR (14-09): 5.4%
Change % (14-13): (7.8%)
Change % (1T15-1T14): 11.0%
205
185
169
166
150
153
140
117
51
48
108
43
52
45
47
34
12
1Q14
2014
2013
2012
2011
1Q15
1Q14
2014
2013
2012
2011
2010
16
1Q15
31
2009
Obs: CAGR 5 anos
55
1Q15
1Q14
2014
2013
2012
2011
2010
2009
47
115
CAGR (14-09): 1.6%
Change % (14-13): 3.3%
Change % (1Q15-1Q14): (21.3%)
2010
166
Sales volume – Exports
2009
216
36
Net cash provided by operating
activities
Operating cash generation
Profit for the year / period
12/31/09
12/31/10
12/31/11
12/31/12
12/31/13
12/31/14
Change R$
(14-13)
Change %
(14-13)
CAGR
03/31/14
(1Q14)
03/31/15
(1Q15)
Change %
(1Q151Q14)
272,211
312,399
305,446
429,003
433,540
490,244
56,704
13.1%
12.5%
96,533
136,880
41.8%
26,307
28,173
28,917
31,725
36,648
47,461
10,813
29.5%
12.5%
10,582
13,342
26.1%
Other
(68,676)
(87,399)
(94,025)
(71,934)
(50,204)
(76,293)
(26,089)
52.0%
2.1%
(28,731)
(25,768)
(10.3%)
Cash generation by changes
in assets and liabilities
(66,756)
(6,243)
(172,191)
(196,158)
(116,679)
23,547
140,226
(120.2%)
(181.2%)
199,238
107,489
(46.0%)
(130,878)
34,930
(106,354)
(189,938)
(82,337)
2,387
84,724
(102.9%)
(144.9%)
225,951
135,582
(40.0%)
Inventories
(6,452)
(1,107)
4,378
(30,194)
(33,139)
(10,298)
22,841
(68.9%)
9.8%
(291)
(17,493)
5,911.3%
Trade payables
22,036
(8,322)
(4,676)
29,795
(17,014)
(3,505)
13,509
(79.4%)
(169.2%)
5,813
7,845
35,0%
Change in other assets and
liabilities
48,538
(31,744)
(65,539)
(5,821)
15,811
34,963
19,152
121.1%
(6.4%)
(32,235)
(18,445)
(42.8%)
163,086
246,930
68,147
192,636
303,305
484,959
181,654
59.9%
24.4%
277,622
231,943
(16.5%)
Depreciation
Trade receivables
Net cash provided by
operating activities
Solid capital structure and strong cash generation
37
Cash and cash equivalents and financial investments (short- and
long-term), borrowings (short- and long-term) and net cash
1.200
1.031
916
R$ million
794
996
874
1.065
734
849
805
654
736
825
616
(141)
(181)
(111)
(138)
(118)
(171)
(135)
2009
2010
2011
2012
2013
2014
1Q15
Cash and cash equivalents and financial investments (Short- and
Long-term)
Borrowings (Short- and Long-term)
Net cash
38
Less labor intensive
More capital intensive
Strategy: Break paradigms
Higher entry barries
Highly marketing intensive
Our expertise of more than 40 years, producing innovative
footwear and generating desired brands, shows the success of
our vision of the market, our strategy and our business model
– and our capacity to create value for stockholders.
39
Value proposition
Cartoons characters, celebrities and successful designers
Brands
Products
Marketing
Management
 Constant creation
of products
 Innovative design
 Manufacturing
technology
 Few products in
large scale
 Aggresive marketing
 Segmentation
 Investment in media
/ events
 Strong relationship
with trade
 Scale gains, scope
gains
 Profitability
 Continuous
improvement
 Financial solidity
 Sustainable growth
Value for Stakeholders
40
Melissa
Brand: Melissa
Main competitors: Arezzo, Schultz, Grudy, Flor de Mel, Cravo e Canela.
41
Women
Main brands: Grendha, Zaxy, Ilhabela
Main licenses: Ivete Sangalo, Shakira, Paula Fernandes
Main competitors: Via Marte, Beira Rio, Ramarim, Dakota, Picadilly, Via Uno,
Anacapri, Usaflex.
Shakira
Juliana Paes
Giovanna Lancelotti
Ivete Sangalo
Paula Fernandes
42
Men
Main brands: Rider, Cartago
Main licenses: Guga Küerten, Bad Boy, Mormaii
Main competitors: Kenner, Beira Rio, Alpargatas, Itapuã, Free-Way.
43
Kids
Main brands: Grendene Kids, Grendene Baby, Zizou
Main licenses: Ben 10, Hello Kitty, Disney, Hot Wheels, Smurfs, Barbie, Moranguinho,
Fisher-Price, Max Steel, Angry Birds entre outras.
Main competitors: Klim, Bibi, Pampily, Bical, Pé com Pé, Marisol
44
Mass market
Main brand: Ipanema
Main competitors: Alpargatas, Dupé, Balina, Beira-Rio.
45
Guidance
Gross sales revenue
5.000
Guidance 12% a.a.
R$ million
4.000
Guidance 8% a.a.
2.711
3.000
2.000
2.720
1.999
1.819
2.324
1.576
1.847
1.000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Guidance 8% a.a.
Guidance 12% a.a.
Realized
We expect in this period to have some years with higher growth than these rate, as happened in 2009 and
other years with lower growth, but on average we intend to achieve these targets.
46
Guidance
Net profit
1.000
Guidance 15% a.a.
R$ million
800
Guidance 12% a.a.
600
429
400
200
239 272
312
434
490
305
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Guidance 12% a.a.
Guidance 15% a.a.
Realized
We expect in this period to have some years with higher growth than these rate, as happened in 2009 and
other years with lower growth, but on average we intend to achieve these targets.
47
Guidance
Targets for:
2008-2015
Gross revenue growth at a compound
annual growth rate (CAGR) between
8% and 12%.
Profit growth at a compound annual
growth rate (CAGR) between 12% and
15%.
Advertising expenses: average 8% 10% of net revenue in this period.
We expect in this period to have some years with higher growth than these rate, as
happened in 2009 and other years with lower growth, but on average we intend to
achieve these targets.
48
Guidance 2015 – Footwear
CAPEX 2015 – approximately
R$ 60 million – maintenance of
the production capacity.
Clube Melissa problably
exceed 200 stores.
49
2014 Collection
Guidance 2015 – Furniture
50
2015 Collection
Guidance 2015 – Furniture
51
Guidance 2015 - Furniture
•
•
•
•
•
•
Wide range of products;
Production by third parties in Italy;
Internationally renowned designers;
Global brand;
Ramp-up operation in 2015;
Sales in Brazil begin in 2015.
52
Francisco Schmitt
CFO & IRO
(55 54) 2109.9022
Thank You
Further information
Internet: http://ri.grendene.com.br
Email: [email protected]
53

1Q15 Results

Transcription

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