ferrara, june 15-16, 2007 giuseppe gullo group cfo university of ferrara 13th world continuous...
TRANSCRIPT
Ferrara, June 15-16, 2007Giuseppe GulloGroup CFO
University of Ferrara
13th World Continuous Auditing & Reporting Symposium
p.1
Who we are
The CFO role in MBFG
INDEX
..
002.
001.
001. Who we are
p.2
BRANDS001.
p.3
MBFG MANAGES A PRESTIGIOUS PORTFOLIO OF OWNED AND LICENCED BRANDS WITH THE AIM TO BECOME A LEADER IN ITS MARKETS
Mugler, Fuchsia (Ungaro), Anglomania (Vivienne Westwood),1000 Miglia, Alviero Martini, Patrizia Pepe
Vivienne Westwood, Warner Bros, Miss SixtyMissoni, Luigi Borrelli
ABBIGLIAMENTOAPPARELSHOUSEBAGS
LEATHER GOODS
LIC
EN
CE
PR
INC
IPA
L O
WN
ED
BR
AN
DS
SH
OP
S
47 15 18 15 44 6 45
FASHION JEWELLERY
NEW ACQUISITIONS:
FACCO, ROSATO,
CALGARO, VALENTE
p.7
THE RETAIL NETWORK AT DECEMBER 31, 2006 CONSISTED OF 311 MONO AND MULTI-BRAND BOUTIQUES (169 DOS+142 FRANCHISEES)
RUSSIA+BALTIC COUNTRIES (32)
FAR EAST (18)
EASTERN EUROPE (17)
GERMANY, AUSTRIA, SWITZERLAND (75)
JAPAN (10)
MIDDLE EAST – REST OF THE WORLD
(19)
ITALY (126)
EUROPE (14)
(38) Don Gil(16) Bernies(15) Rene Lezard(2) Mila Schon(2) Revedi(1) Baldinini(1) Coccinelle
(30) Mariella Burani(27) Coccinelle(20) Revedi(15) Baldinini (11) Mila Schön(9) Braccialini(7) Francesco Biasia(6) Antichi Pellettieri(1) Junior fashion
(12) Baldinini (3) Francesco Biasia(1) Mariella Burani(1) Coccinelle
(5) Coccinelle(3) Mariella Burani(1)
(3) Baldinini(2) Francesco Biasia(3) Braccialini(3) Antichi Pellettieri
(5) Mariella Burani (4) Braccialini(2) Baldinini(4) Francesco Biasia(2) Coccinelle(1) Mila Schön
(6) Mila Schön(3) Mariella Burani(1) Coccinelle
(27) Baldinini(1) Mariella Burani(3) Coccinelle(1) Braccialini
(4) Mariella Burani(5) Coccinelle(2) Rene Lezard(1) Braccialini(2) Francesco Biasia
FEBRUARY 2007p.4
DISTRIBUTION NETWORK 001.
FROM 2000, THE AVARAGE GROWTH RATE OF THE REVENUES WAS 27,4%, WITH A MORE THAN PROPORTIONAL GROWTH OF THE EBITDA (+46,6%), AND OF THE EBIT (+60,2%)
p.5
DINAMIC GROWTH001.
CAGR CAGR
MILLIONS OF EURO 2000 2001 2002 2003 2004 2000-2004 2004 2005 2006 2000-2006
NET REVENUES 157,0 221,7 273,9 358,8 428,9 28,6% 429,6 483,1 672,6 27,4%
% TOTAL GROWTH 41,2% 23,5% 31,0% 19,3% 12,5% 39,2%
% ORGANIC GROWTH 34,0% 6,0% 10,5% 5,4% 8,1% 14,3% 16,1%
EBI TDA 12,6 22,8 32,4 43,5 53,3 43,4% 45,2 61,4 125,1 46,6%
% TOTAL GROWTH 81,0% 42,3% 34,1% 22,6% 35,9% 103,7%
EBITDA Margin 8,0% 10,3% 11,8% 12,1% 12,4% 10,5% 12,7% 18,6%
EBI T 5,5 11,5 19,9 25,9 32,6 56,1% 29,0 42,7 92,6 60,2%
% TOTAL GROWTH na 109,6% 72,9% 30,0% 25,8% 47,0% 117,1%
EBIT Margin 3,5% 5,2% 7,3% 7,2% 7,6% 8,8% 13,8%
PRETAX 2,4 6,2 13,7 17,3 20,8 72,2% 16,2 27,9 68,8 75,3%
% TOTAL GROWTH na 160,3% 118,7% 26,9% 20,3% 72,1% 146,6%
Margin 1,5% 2,8% 5,0% 4,8% 4,9% 3,8% 5,8% 10,2%
ROCE 4,2% 7,3% 9,8% 10,5% 11,0% 8,3% 10,3% 19,5%
I TALI AN GAAP I AS / I FRS
40 consolidated companies
2.480 employees
A worldwide presence
A sub-holding, Antichi Pellettieri, listed on Italian Stock Exchange market “EXPANDI segment” with a capitalization of about euro 480 mln.
A stock capitalization of about euro 780 mln. at STAR segment (a growth of the share price from 2006 of about 70% and from IPO of
about 250%)
Italian and international shareholders (with the presence of 2 important Private Equity funds)
LCapital (LVMH) and Tamburi & Partners important shareholders with 6,5% of equity stake of MBFG
20 financial analysts cover the stock
WHO WE ARE AT ALL
p.6
002. The CFO role in MBFG
p.7
• CFO as a “transition manager”
• CFO as a “Business Integrator”
• CFO as a “Process Administrator” inside and outside of the Group
THE CFO ROLE IN MBFG002.
p.8
CFO as a “transition manager”
• Globalization implies “daily changes”
• Basilea 2 (a rating for each company)
• IAS/IFRS
• Information Systems / Business Intelligence
• Speed to manage transition as a competitive advantage
002.
p.9
THE CFO ROLE IN MBFG
CFO AS a Business Integrator
• Growth plan through acquisitions (with minorities as an important asset for the Group)
• Management of minorities with integrated criteria
• Developement of synergies among acquired companies for an accelerated growth (focus on “made in Italy” sector)
• Diffusion of an integrated Group culture and philosophy (“Thinking Group concept”)
p.10
002.THE CFO ROLE IN MBFG
CFO AS a Process Administrator
• Process codification of accounting methodology (Consolidation manual)
• Developement of an “Organization chart” and a “Responsability
tree” for companies’ decision makers
• Information systems’ developement to better manage information flows inside and outside of the Group
002.
p.11
THE CFO ROLE IN MBFG
CONTINUOUS AUDITING AND INFORMATION TOOLS
• Introduction of new information and comunication tools like Business Intelligence Systems
• Continuous monitoring on monthly basis on a single legal entity level of data and performances
• Performance measurement and creation of a Performance Manager role to monitor “Intangible Asset Value”
p.12
002.THE CFO ROLE IN MBFG
THE INTANGIBLE ASSETS IN THE BALANCE SHEET:THE INTANGIBLE ASSETS IN THE BALANCE SHEET:the performance focusthe performance focus
From accounting figures to “value”
Employees
Client base
Community
Others
Intangibles Value left to third parties
GOODWILL
“Sustenability” financial
statement
Equity(Goodwill +
specific intangibles)
Book value Book value
“Market Value” financial statement
“Accounting” financial
statement
Specific intangibles
p.13
002.
Specific intangibles
Specific intangibles
“Real value”
INTERRELATED PROSPECTIVES SUB FACETS PERFORMANCE INDICATORS RATIOS
Stakeholder Satisfaction
Investor Satisfaction
PROFITABILITY (Ros, Roa, Roe, Roic, EVA) (Sales, Ebitda,Ebitda margin, Ebit)
Strategies Brand, Product & Service Strategy
BRAND EQUITY/BRAND VALUE Price Premium, Layer Approach (to control intangible assets value)
Processes Fulfil Demand
DEMAND/PRODUCTION (D/P Ratio) demand lead time / production lead time
Capabilities Infrastructure OVERALL EQUIPMENT EFFECTIVENESS
Overall Equipment Effectiveness = Availability x Performance x Quality
Stakeholder Contribution
Customer Contribution
COSTUMER RETANTION/TURNOVER/LOYALTY
% of existing customers that return to purchase from the company in a given period;% of orders / sales turnover which are from existing customer
SOME KEY PERFORMANCE INDICATORS
p.14
002.
STRATEGY AND VALUE CREATION IN MBFGSTRATEGY AND VALUE CREATION IN MBFG
p.15
002.
MBFG 2-Y Stock Performance