Investor Day & Trading Update
- Update 19/12/17 : The webcast replay is available here: https://pgi.webcasts.com/viewer/landing.jsp?ei=1170652&tp_key=bd5b8b5584 -
- This is an abstract. For further details, please refer to the full press release. -
Investor day and webcast
Tomorrow (13 December), D’Ieteren will host an Investor Day in London. The speakers will include:
- Axel Miller (CEO of D’Ieteren)
- Arnaud Laviolette (CFO of D’Ieteren)
- Gary Lubner (CEO of Belron)
- Denis Gorteman (CEO of D’Ieteren Auto)
- Lorenzo Viglione (CEO of Moleskine)
The main topics that management will address include the recent evolution of D’Ieteren’s activities (D’Ieteren Auto, Belron and Moleskine), their medium-term strategy and D’Ieteren’s purpose and value creation strategy.
A live webcast of the presentations will be available as from 10:00am (GMT) through the following link:
The programme of the event is available as an attachment to the full press release.
The presentations will be available in PDF format in the morning on www.dieteren.com.
Trading update for the period ending 31/10/17
Year-to-date sales at the end of October were up 5.9% versus the same period last year. Excluding registrations of less than 30 days, the number of new car registrations in Belgium rose by 3.4% to 467,041 units during the first ten months of 2017.
Excluding new car registrations of less than 30 days, the market share of the makes distributed by D’Ieteren Auto reached 21.2% (21.5% year-to-date in October 2016 and 21.8% for the FY 2016).
The total number of new vehicles, including light commercial vehicles, delivered by D’Ieteren Auto was up 3.4% to 105,965 units.
Sales were up by 5.7% during the first 10 months of 2017 compared to the same period last year, comprising a 5.9% organic increase, 1.5% from acquisitions, a negative 0.4% trading day impact and a 1.3% negative currency translation effect. The business has served 14.2 million consumers, an increase of 7.1% compared to 2016.
Moleskine’s revenues increased by 8.2% during the first 10 months of 2017 or by 9.3% at constant exchange rates.
Since August 2017, the following elements have occurred which will have an impact on the expected adjusted result before tax, group’s share, for 2017:
- Sales at D’Ieteren Auto have grown more than anticipated;
- FY 2017 ELTIP provisions at Belron are lower than anticipated due to lower USD;
- Service extensions costs at Belron are higher than anticipated (EUR ~11 million), reflecting a higher level of investment to sustain future growth and profit (Netherlands, France, Italy, Belgium and others);
- ELTIP charge at Moleskine (EUR ~2.5 million) was decided after the previous guidance;
- About 10% sales growth at Moleskine, whilst higher than ~6% sales growth during H1 2017, remains below expected double-digit sales growth for FY 2017 (in particular given lower than anticipated US wholesale revenues);
- Full year effect of weaker USD and GBP for Belron and Moleskine.
As a result, D’Ieteren now anticipates that the adjusted result before tax, group’s share, should increase by a low single-digit number compared to EUR 241.6 million in 2016 (previous guidance: ‘about 10%’).
Medium term targets
At the occasion of the previous Investor Day (December 2015), D’Ieteren set out several medium-term targets.
D’Ieteren Auto significantly exceeded its 2.0% sales growth target in 2015 (8.0%), 2016 (8.4%) and during the first 10 months of 2017 (5.9%). The activity now aims at an average of 2-3% sales growth for the next 5 years. The adjusted operating margin target for D’Ieteren Auto including Corporate has been upped from 2.5% to >3% and the pre-tax ROCE target has been increased from 15% to 20%. The free cash flow target remains unchanged at EUR 70 million.
Belron outperformed the sales growth targets that were set out two years ago. Going forward, average (organic) sales growth is expected to increase by “mid-single digit”, while adjusted operating result should rise by ‘low double digit’. The target ROE based on Belron’s implied equity value (EUR 1,550 million) of the agreement with CD&R amounts to 15%. Belron also aims at a free cash flow above EUR 200 million within the next 5 years.
Moleskine’s medium targets include sales growth in excess of 10%, and an average EBITDA margin that exceeds 25%. The pre-tax ROCE based on the amount that was invested by D’Ieteren should reach 14% by 2022. Moleskine aims at a free cash flow above EUR 40 million within the next 5 years.
End of the abstract
In existence since 1805, and across family generations, D’Ieteren seeks growth and value creation by pursuing a strategy on the long term for its businesses and actively encouraging and supporting them to develop their position in their industry or in their geographies. The group has currently three activities articulated around strong brands:
- D'Ieteren Auto distributes Volkswagen, Audi, SEAT, Škoda, Bentley, Lamborghini, Bugatti, Porsche and Yamaha vehicles in Belgium. It is the country's number one car distributor, with a market share of around 22% and 1.2 million vehicles on the road at the end of 2016. Sales and adjusted operating result reached respectively EUR 3.1 billion and EUR 75.8 million in FY 2016.
- Belron (94.85% owned) makes a difference by solving people’s problems with real care. It is the worldwide leader in vehicle glass repair and replacement, trading under more than 10 major brands including Carglass®, Safelite® AutoGlass and Autoglass®. In addition, it manages vehicle glass and other insurance claims on behalf of insurance customers. Belron is also expanding its services to focus on solving problems for people who need assistance with repairs to their vehicles and homes. Sales and adjusted operating result reached respectively EUR 3.3 billion and EUR 190.7 million in FY 2016.
- Moleskine (100% owned) is a premium and aspirational lifestyle brand which develops and sells iconic branded notebooks and writing, travel and reading accessories through a multichannel distribution strategy across 102 countries. Sales and operating result reached respectively EUR 145.2 million and EUR 34.0 million on a stand-alone basis in FY 2016.
Axel Miller, Chief Executive Officer
Arnaud Laviolette, Chief Financial Officer
Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39