MR BRICOLAGE (EPA:ALMRB) - MR BRICOLAGE: 2016 earnings, strong non-recurring impact by the REBOND strategic plan

Transparency directive : regulatory news

15/03/2017 17:49

Group of 794 stores in 12 countries (volume of business of EUR2.14 billion
in 2016)

                                2016 earnings
   Transition year focused on setting up the REBOND strategic plan: strong
               non-recurring impact on the consolidated accounts
  From 2017, return to current operating profit growth with a resized scope

Orléans, 15 March 2017

* Consolidated net result, Group share impacted by the REBOND plan: -EUR65.2
  million
* Debt reduction: EUR12.2 million
* Proposed dividend: EUR0.60 per share

Mr. Bricolage SA, which groups local independent home improvement, decoration
and gardening stores, is releasing its consolidated financial statements for
2016, which were today approved by the Board of Directors.

"The past year has been a year of transition dedicated to setting up our REBOND
strategic plan, refocusing Mr. Bricolage on its Network Services, the heart of
the business model that has been the foundation for its success since 1964. The
REBOND plan will create new dynamics for growth within our Group and our
network of members-entrepreneurs. On 16 November 2016, we moved into the first
phase of this four-year plan: going back to basics. This phase, which required
significant non-recurring provisions to be recorded in 2016, is enabling us to
prepare, with peace of mind, for the launch of our strategic redeployment in
June this year", explains Christophe Mistou, Mr. Bricolage's CEO.

Condensed consolidated financial statements

In EUR million                    31 Dec 2016      31 Dec 2015        % change
Consolidated turnover                   523.6            529.5          - 1.1%
of which Network services               179.2            186.1          - 3.7%
of which Retail                         344.4            343.4          + 0.3%
EBITDA                                   27.2             36.3         - 25.1%
Current operating profit (1)             13.6             21.0          -35.0%
of which Network services                30.8             32.9          - 6.3%
of which Retail                         (17.2)           (12.0)        - 43.8%
Specific provisions for REBOND plan     (87.3)               -               -
Other non-recurring expenses (Tascom)    (2.1)               -               -
Operating profit (loss) (1)             (75.8)            21.0               -
Financial expense                        (2.7)            (4.1)        + 33.7%
Profit (loss) before tax                (78.5)            16.8

Affiliates' contribution                  1.0              0.8         + 17.1%
Tax                                      12.2             (8.1)              -
Net losses from discontinued operations  (0.2)               0               -
Net profit (loss), Group share          (65.2)             9.6               -

Net financial debt                       66.6             78.8         - 15.5%
Net financial debt / EBITDA            2.45 x           2.17 x               -
Gearing                                 34.0%            30.0%               -

Current operating profit

For 2016, the Mr.  Bricolage Group is reporting a current operating profit of
EUR13.6 million (EUR21.0 million(1) in 2015).

- Retail

In an environment marked by the REBOND strategic plan's launch in the second
half of the year, the current operating loss for the Retail business - which
includes Directly owned stores and  e-commerce - increased to -EUR17.2 million
in 2016 (-EUR12.0 million(1) in 2015).

Following the lower sales margin recorded, resulting from the massive stock
clearance for products with slow turnover rates in the 87 directly owned stores
over the second half of the year, the worsening difficulties facing the stores
proposed for closure and the increase in competition, the current operating
loss for Directly owned stores rose to -EUR14.9 million in 2016 (-EUR10.8
million(1) in 2015).

(1) In 2015, as no non-recurring income and expenses were recorded, the
operating profit was equal to the current operating profit.

To prepare to accelerate its digital transformation and enhance its customer
experience, Mr. Bricolage has chosen to focus in priority on growth for its
e-commerce business by further strengthening its teams and developing its
mr-bricolage.fr and le-jardin-de-catherine.com sites. As a result, despite the
18.4% increase in home delivery sales, the e-commerce business recorded a
current operating loss of -EUR2.3 million in 2016 (-EUR1.1 million(1) in 2015).

- Network services

The current operating profit for the Network services business came to  EUR30.8
million  in  2016  (EUR32.9 million(1) in 2015). The impact of the contraction
in its turnover, linked to the lower volumes of both purchases and business,
was limited by the improvement of margins on products sourced in dollars.

Operating profit (loss)

As announced when launching the REBOND strategic plan, the non-recurring
provisions recorded had a  strong impact on 2016 operating result, which shows
a loss of -EUR75.8 million (a profit of +EUR21.0 million in 2015).

The specific provisions for the REBOND plan represent EUR87.3 million. They
concern mainly non- recurring staff costs and depreciations of goodwill and
inventory to prepare the proposed closure of stores in critical situations
(EUR34.7 million), the acceleration of the divestment of around 60 stores to
members-entrepreneurs (EUR27.2 million) and the redefinition of the commercial
offering EUR23.5 million).

In addition to these provisions, EUR2.1 million of TASCOM (retail property tax)
non-current expenses based on 2015 turnover following the change of its due
date since 2016.

Financial expense
The Group's debt reduction strategy is enabling it to reduce its financial
expenses. For the full year in 2016, financial expense came to -EUR2.7 million
(-EUR4.1 million in 2015).

Net profit, Group share

For 2016, Mr. Bricolage benefited from +EUR12.2 million of tax savings (-EUR8.1
million of tax expenses in 2015). This notably includes the tax savings linked
to non-current operations for EUR18.9 million, as well as deferred tax expenses
relating to the change of tax rate under the new terms of the 2016 French
Finance Act for EUR1.5 million, and tax expenses for EUR5.2 million on a basis
of EUR12.0 million current profit.

As a result, the net result, Group share for 2016 represents a loss of -EUR65.2
million (a profit of +EUR9.6 million in 2015).

Debt reduction continues

The EUR12.5 million reduction in working capital requirement over the year,
thanks to the reduction in stock levels for directly-owned stores by nearly 9%,
helped the Group's net debt to be down to EUR66.6 million(2) at 31 December
2016 (EUR78.8 million at 31 December 2015).

With EUR194.6 million of shareholders' equity, the Mr.Bricolage Group's gearing
came to 34% at 31 December 2016.

(1) In 2015, as no non-current income and expenses were recorded, the operating
profit was equal to the current operating profit.
(2) Net financial debt at 31 December 2016 factors in payments made relating to
the acquisitions of the Thouars and Arles stores for EUR6.7 million and the
reclassification of net financial debt under operations held for sale for
EUR0.7 million on the Laroque-des-Albères store.

Outlook

- Looking ahead to 2020

Launched on 16 November 2016, the REBOND plan marks the refocus of Mr.
Bricolage on its Network services business, its longstanding core business and
the foundation for the successful development of the Group and its networks of
members-entrepreneurs.

By accelerating plans to divest its Directly-owned stores to its members,
redefining its commercial offering, successfully moving forward with its
digital transformation to support its customer experience, and repositioning
its members at the heart of the decision-making process, Mr. Bricolage has two
core objectives to ensure its sustainable return to growth by 2020:

- Relaunching the development of its networks, driven by increased
profitability for member- entrepreneur stores,

- Increasing the Group's earnings and profitability, capitalizing on its change
of scale, with growth in its Network services business, while ramping up
e-commerce and resizing its Directly-owned stores business.

*   FY 2017

For 2017, Mr. Bricolage is able to confirm that it will be keeping to its
schedule for the REBOND plan, particularly with:
- The proposed closure of directly-owned stores in critical situations by the
  end of December;
- The successful implementation of the plan to divest around 30 stores in "as
  is" condition to members by 2019, confirmed with the sale of the Les
  Briconautes store in Laroque-des-Albères (Pyrénées-Orientales) in January,
  with several stores to be divested over the coming weeks;
- The overhauling of mr-bricolage.fr and the repositioning of
  le-jardin-de-catherine.com;
- The rationalization of the product range, notably making it possible to
  improve purchasing conditions.

In this environment, Mr. Bricolage, which will continue rolling out its debt
reduction program, is forecasting a return to current operating profit growth
with a resized scope in line with the store closures and sales completed.

Confident about this outlook, the Board of Directors decided today to submit a
proposal at the Annual General Meeting to pay out a dividend of EUR0.60 per
share for 2016.

The Group will be releasing its half-year earnings and an update on the REBOND
         plan on Wednesday 26 July 2017 after close of trading.

About the Mr. Bricolage Group (figures as at 31 December 2016)

The Mr. Bricolage Group, which develops the well-known brands Mr. Bricolage and
Les Briconautes, is a French specialist in DIY local independent retail with
723 outlets operating under the brands or through affiliates. Internationally,
the Group is present in 11 others countries with 71 stores.

Mr. Bricolage SA (MRB FR0004034320) is listed in compartment C of Euronext
Paris and is part of the Enternext PEA-PME 150 and CAC All Shares indices.

Mr. Bricolage SA is eligible for French PEA-PME savings plans.

Mr. Bricolage

Eve Jondeau
Head of Financial Communications
Tel: +33 (0)2 38 43 21 88
eve.jondeau@mrbricolage.fr

Calyptus

Marie-Anne Garigue / Grégory Bosson
Press and Investor Relations
Tel: +33 (0)1 53 65 68 63 / 37 90
mrbricolage@calyptus.net

For more information about the Mr. Bricolage Group, visit www.mr-bricolage.com

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MR BRICOLAGE (EPA:ALMRB) - MR BRICOLAGE: 2016 earnings, strong non-recurring impact by the REBOND strategic plan

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