Adjusted EBITDA development

Adjusted EBITDA increased 12.8% at constant exchange rates to €512 million in 2015 (2014: €449 million) with 9.2% organic growth and a 3.6% contribution from acquisitions. The increase in adjusted EBITDA was driven by comparable growth in our stores. Revenues and gross profit both increased while the store operating cost in the areas of retail personnel costs, marketing and rental expenses were contained.

The adjusted EBITDA margin remained constant at 16.0%. Excluding the dilutive impact of acquisitions, the EBITDA margin would have increased by 64 bps to 16.6%.

In the G4 segment, adjusted EBITDA increased by 10.1% to €401 million in 2015 (2014: €364 million). The adjusted EBITDA margin increased by 28 bps to 20.3% in 2015 (2014: 20.0%).

In the Other Europe segment, adjusted EBITDA increased by 18.1% to €135 million (2014: €114 million) or 19.4% at constant exchange rates. The adjusted EBITDA margin decreased by 19 bps to 15.4% mainly due to the diluting effect of acquisitions.

In the Americas & Asia segment, adjusted EBITDA increased by 58.8% to €8 million in 2015 (2014: €5 million), or 85.9% at constant exchange rates. Organic EBITDA growth was 106.2%, while acquisitions had a negative impact of 20.4%.

The other reconciling items primarily consist of corporate costs not allocated to specific regions. These costs decreased by 5.1% to €32 million in 2015.

Adjusted EBITDA

in millions of EUR
(unless stated otherwise)

2015

2014

Change
versus
prior year

Change at
constant FX

Organic growth

Growth from acquisitions

G4

401

364

10.1%

8.4%

7.2%

1.2%

Other Europe

135

114

18.1%

19.4%

7.9%

11.5%

Americas & Asia

8

5

58.8%

85.9%

106.2%

-20.4%

Other reconciling items

- 32

- 34

-5.1%

-1.7%

-1.7%

0.0%

Total

512

449

13.8%

12.8%

9.2%

3.6%

Adjusted EBITDA margin (%)

2015

2014

Change versus prior year

G4

20.3%

20.0%

28bps

Other Europe

15.4%

15.6%

-19bps

Americas & Asia

2.3%

1.9%

36bps

Total

16.0%

16.0%

0bps

Reported EBITDA increased by 18.9%, from €426 million in 2014 to €506 million in 2015. This increase also reflects the inclusion of exceptional and non-recurring items for a total of -€5 million recorded in 2015, which were mainly related to legal and regulatory provisions, costs related to the IPO in 2015, including its effect on the valuation of the long-term incentive plans and some other items, partially offset by the benefit related to the changed pension calculations in the Netherlands. In 2014, non-recurring items were -€24 million mainly reflecting the one-off costs of the listing preparation including the IPO impact on the valuation of the long-term incentive plans.

A reconciliation from adjusted EBITDA to Operating result for 2015 is presented in the table below.

Reconciliation EBITA, EBITDA, adjusted EBITDA and operating result

in millions of EUR

2015

% of revenue

2014

% of revenue

Adjusted EBITDA

512

16.0%

449

16.0%

Non-recurring items

- 5

-0.2%

- 24

-0.8%

EBITDA

506

15.8%

426

15.1%

Depreciation and amortization of software

- 121

-3.8%

- 108

-3.8%

EBITA

385

12.0%

317

11.3%

Amortization and impairments

- 32

-1.0%

- 29

-1.0%

Operating result

353

11.0%

289

10.2%