Q1 2024 Results - Investor Presentation slide image

Q1 2024 Results - Investor Presentation

Financial Review - Adjusted Free Cash Flow Adjusted Free Cash Flow reached €204.3m with a conversion rate of 70.7% in LTM ended December 31, 2023. Adjusted Free Cash Flow In Єm Reported EBITDA Change in working capital Net Cash Used in Investing Activities (a) Other operating cash flow (b) Reported Free Cash Flow As % of Reported EBITDA Refurbishment and openings capital expenditure (c) Change in working capital of fixed assets (c) Sales of property, plant and equipment and intangible assets (c) Investment in physical gold inventory (d) Covid-19 subsidies and credit notes (e) Adjusted Free Cash Flow As % of Adjusted EBITDA First Quarter LTM Ended December Q1 2023 Q1 2024 Var. 2024 116.7 118.3 1.5 274.4 26.0 53.8 27.8 (15.6) (16.3) (0.8) (4.5) (52.6) (8.1) (6.2) 1.9 119.1 149.6 30.5 (32.8) 184.5 102.0% 126.5% 24.5 pp 67.2% 20.9 0.2 (0.5) (0.0) (0.8) 204.3 70.7% Free Cash Flow Our free cash flow is seasonal, with a peak in December after the Christmas season once we have recorded payment for our products sold, and a low point in September to November reflecting inventory build-up ahead of the Christmas season. The main drivers of the seasonality of our free cash flows are Reported EBITDA, changes in working capital (mainly trade payables and, to a lesser extent, inventories) and capital expenditure, consisting of opening capital expenditure, maintenance capital expenditure and refurbishment capital expenditure. Free cash flow in Q1 2024 increased by €30.5m mainly due to the combination of (i) higher sale of Gold inventory in Q1 2024, compared to Q1 2023 mainly due to our hedging policy with specifically high level of physical gold sold and (ii) by anticipation of purchases the Christmas season in 2022 to secure procurement which was not renewed in 2023, resulting in a higher balance of suppliers as of December 31, 2023. (a) (i) Acquisition of property, plant & equipment and intangible assets, (ii) Disposal of property, plant & equipment, intangible assets net of (iii) Change in working capital on fixed assets, (iv) acquisition of financial assets and (v) acquisition of subsidiary, net of cash acquired) (b) (c) Includes income tax paid and cash impact of other non-recurring income and expenses. (i) refurbishment [and expansion] capital expenditure, (ii) change in working capital of fixed assets, (iii) sales of property (d) Corresponds to a targeted investment made in June 2023 in a physical gold inventory for hedging purposes, with the inventory subsequently being resold in October and November 2023 (no such investments were made in Q1 2024) (e) Cash impact of non-recurring subsidies and suppliers' credit notes received by the Group, as compensation for operating losses incurred as a result of the COVID-19 pandemic related to prior years (i.e., the financial years ended September 30, 2020 and 2021). Goldstory Adjusted Free Cash Flow corresponds to Free Cash Flow restated for (i) Refurbishment and opening Capital Expenditure for €20.9m in LTM Dec23, (ii) Cash impact of non-recurring subsidies and suppliers' credit notes received by the Group for €0.8m in LTM Dec23, and (iii) €0.3m of change in working capital and sales of property. Adjusted Free Cash Flow reached €204.3m in LTM Dec2023, i.e. 70.7% as a percentage of Adjusted EBITDA. THOM Q1 2024 Results - Investor presentation March 15, 2024 p.20
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