Investor & Analyst Presentation Eigenkapitalforum Frankfurt November 24-26th, Dr. Cornelius Patt, CEO Andreas Grandinger, CFO

Transcription

1 Investor & Analyst Presentation Eigenkapitalforum Frankfurt November 24-26th, 2014 Dr. Cornelius Patt, CEO Andreas Grandinger, CFO

2 Safe Harbor Statement This document includes supplemental financial measures that are or may be non-gaap financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of zooplus financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently. This document contains statements related to our future business and financial performance and future events or developments involving zooplus that may constitute forward-looking statements. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of zooplus management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond zooplus control, affect zooplus operations, performance, business strategy and results and could cause the actual results, performance or achievements of zooplus to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. Further information about risks and uncertainties affecting zooplus is included throughout our most recent annual and interim reports, which are available on the zooplus website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of zooplus may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. zooplus neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Investor Presentation page 2

3 zooplusstrong sales growth will continue and more than 1.1 bntotal sales should be reached already by 2017 Total sales e > 200 > Total sales ~ 900 New customer sales (1 st year) ~ > 550 Repeat customer sales % 85% 79% 81% 32.5% 30.7% 27.1% 30% 92% 93% 27% 29% 93% 22% Retention rate Total sales growth vs. PY e 2015e 2016e 2017e in m, based on organic growth in European countries Investor Presentation page 3

4 In a large and fragmented niche market zooplusdominates online and is rapidly catching up with the offline leaders Market share zooplus and competitors 2014e Total net sales: ~ 0.9 bn Online: ~ 0.01 bn(< 2%) 1 Growth 2014e: 10% Net sales: ~ 0.2 bn Total pet supplies market Europe (incl. VAT): ~ 25 bn (~ 21 bnnet) CAGR: e: 2-3% Net sales: 0.5 bn CAGR: e: 30% ~ 50 % market share zooplusonline ~ 2.6 % market share online and offline Total net sales: ~ 1.4 bn Online: ~ 0.07 bn(~ 5%) 1 Growth 2014e: 5% Source: Euromonitor, company information, zooplus estimation; 1 online share of total net sales Investor Presentation page 4

5 zooplusis the online market leader in all geographies of Europe with the widest possible base for further growth Net sales / market shares (2014e) 533 m EUR (2014e) 2.6% of total market 5.2% of specialty market (non-grocery) Total market 21 bn 533 m 2.6% Size of total market online and offline (net sales) Net sales zooplus Market share zooplus 4.2 bn 47 m 1.1% 4.3 bn 87 m 2.0% +50% 1.5 bn 66 m 4.3% NL, BE, LU +30% +30% 1.1 bn 31 m 2.7% 4.5 bn 189 m 4.2% D,A,CH DK, SE, FI +50% +15% 1.6 bn 45 m 2.8% HU +60% PL, CZ, SK, HU, RO, SI, HR, BG, TR +30% Sales growth 2014e 1.5 bn 28 m 2.0% +35% 2.7 bn 40 m 1.5% +45% ES, PT Source market size: Euromonitor,market data 2013; zooplus estimation, market growth 2%p p.a., BMF; sales growth 2014e rounded to 5% steps Investor Presentation page 5

6 Customer loyalty the winning factor of the business model is further improving in 2014 Retention rates Cohort analysis (Net sales in m) + 6 %p + 5 %p Ø 90% 2014 a Ø 85% a Ø 79% 2012 a % 2013 a a % 63% 62 90% 2010 a a a % 79 99% % 46 98% 45 99% 44 <= a a+2 <= a+1 <= a a a+4 <= % % % e Reading example: 2011 a+1= sales of 2011 s new customers in 2012 Investor Presentation page 6

7 Account value and customer account retention increase significantly with length of customer life 59% New customers of a year 41% One-time transaction Accounts with 2 nd order (Repeat business) Prime reasons Account retention Remaining accounts Sales per active account Cum. sales per account created Duplicate accounts a 100 % 100 % Accessories / non repetitive demand Not my thing a + 1 a + 2 a % 77 % 86 % 68 % 53 % 45 % a % 40 % a % 37 % a % 26 % Investor Presentation page 7

8 Today s sales growth and retention are so important because they determine future net sales tremendously Locked-in net sales over next five years ( m) Net sales of year Retention rate % 830 Locked-in sales for next 5 years from 2012 customer base and a retention rate of 79% % e % e ~ % Investor Presentation page 8

9 The foundation of zooplus growth and online market leadership is cost leadership in the category Cost structure e 40.5% 5.8% 22.9% 36.9% 4.6% 33.5% 2.5% 22.9% 21.7% 30.0% 1.8% 20.2% Pets at Home 42% 1) FressnapfGroup 38% 2) ReweGroup 29% 1) (Grocery channel) 7.0% 5.0% 4.8% 4.2% 4.8% 4.5% 4.5% 3.8% e Advertising/Marketing Logistics IT/Admin / payment Personnel in % of total sales (incl. depreciation & interest) Source: company data; zooplus estimation; 1) ) 2012 Investor Presentation page 9

10 zooplusshows largely positive results in repeat customer business, overall result impacted by customer acquisition Pro-forma EBT/Sales by segments 2014e ( m) Repeat customers (consecutive year s sales) New customers (sales in the year of acquisition) Net sales % of total z+ EBT EBTmargin EBTmargin Net sales % of total z+ EBT Direct / optimized supply chain 1 Indirect / intermediate stage supply chain 2 Total % % % 4 +3% % % 76 14% -3-4% 90 17% -3-4% % - 6-4% EBT zooplus 2014e: ~ 8 m 1 DE, AT, CH, NL, BE, PL, CZ 2 Other countries Source: zooplus data (unaudited) Investor Presentation page 10

11 Logistics capacity will be doubled in the next three years, product quality and efficiency will further improve» Single item FC in Strasbourg Q4/2014» FC in Chalon-sur-Saone starting in Q1/2015» Capacity increase in FC Wroclaw» Planned FC in UK by Q4/2015» All FCs operated by partners; no capex for zooplus» Orderroutingand packing algorithms intellectual property of zooplus Q1/ Q4/2014 Q2/2013 Fulfillment center (FC) Potential FC under investigation Investor Presentation page 11

12 zoopluslogistics structure is tailor-made for heavy and bulky products in inbound and outbound logistics zooplus logistics Source: zooplus amazon logistics (example) Source: DiePresse.com; dpa Investor Presentation page 12

13 In summary: strong improvement of KPIs during last three years with more to come in next years In m e Competitive index Gross margin (before advertising) 39% 32% Share of food 64% 77% Retention rate 79% 90% New business Net growth total sales Advertising Gross margin (after advertising) 33% 30% Operating costs (before advertising) 35% 28% Total sales 257 > 550 Gross profit (after advertising) Earnings before tax EBT Strongly increased competitive pressure Lowered prices (reactive/ proactive) Focus on food + right pricing Retention boost Net growth doubled Advertising efficiency tripled Massive efficiency gains and scaling effects Top line CAGR: 29% p.a. Gross profit CAGR: 25% p.a. 1 one-off effects of logistics migration adjusted in 2011; EBT 2011 without adjustment -9 m Investor Presentation page 13

14 Current outlook shows a strong improvement in sales development Total sales ( m) EBT ( m) % vs. PY e > % ~ e 2016e ~ % ~ % ) ) 1) Pre unforeseen oneoffs for migration of IT platforms to SAP and Hybris 2017e > % CAGR: e 27% p.a. > 50% p.a. Investor Presentation page 14

15 Current shareholder structure is very much focused on growth and mid-term value creation December 2012 November 2014 Others 18.70% Burda 50.04% Others 18.15% Burda 34.30% Management 4.00% Management 5.34% Wasatch Advisors 5.39% Deutsche Asset & Wealth 4.23% Ruane, Cunniff& Goldfarb 5.90% Wasatch Advisors 4.99% The NomadInvestment Partnership 7.98% Capital Research 7.99% Capital Research 7.99% Ruane, Cunniff & Goldfarb 10.01% Maxburg Beteiligungen GmbH 14.99% Source: information from notification of voting rights and company information; data as of Nov, 14 th. Investor Presentation page 15

16 Liquidity in the zooplus stock has increased during 2014 Daily trading volumein k Ø per day 176 k Ø per day vs k % 329 k since % 480 k last 4 weeks % Source: Deutsche Börse, data until Investor Presentation page 16

17 zooplusmarket cap and net sales development since listing in May 2008 Market cap in m Net sales run-rate in m Ø last 4 weeks: 0,7 0,8 0,5 0,5 1,0 0,6 0,6 0,6 Ø Market cap p.a. / net sales Source: zooplus data; Deutsche Börse, data until Investor Presentation page 17

18 zooplus: a winning investment case Successful development in 2014: sales 30% up, cost ratio at 30%, EBT up > 100% Balanced shareholder structure increased liquidity in the zooplus stock Strong balance sheet for further growth high return on capital Market of 25 bnleaves great potential closing the gap towards the No. 1 in Europe Committed management board with 5% in the capital of the company Excellent outlook: Superlineargrowth 27 % p.a. Total sales > 1.1 bnin 2017 EBT CAGR until 2017 > 50 % p.a. zooplus: prepared for strong value creation for investors Investor Presentation page 18

19 Backup: Key Financials Investor Presentation page 19

20 Key Financials Q P&L in m Q Q abs % Total sales abs in % 35.8% COGS Logistics Payment Customer acquisition % % % % % % % % %p -1.4%p -0.3%p -0.3%p» Total sales up 36%, adding 38.6 m on prior year period» Significantly increased efficiency in logistics (-1.4%p), customer acquisition (-0.3%p) and personnel (-0.8%p)» Total cost ratio of 29.2% (previous year 32.1%) Personnel % % %p G&A % % %p EBITDA % % %p I&DA % % %p EBT % % %p Investor Presentation page 20

21 Profit & Loss 9M 2014 in m 9M M 2013 abs % abs % Sales % % Other income % % Total sales % % Cost of materials % % Personnel costs % % Depreciation % % Other expenses % % thereof logistics/ fulfillment (-81.9) -20.3% (-67.3) -22.0% thereof marketing (-7.0) -1.7% (-8.3) -2.7% thereof payment (-4.9) -1.2% (-4.4) -1.4% thereof other costs (-11.0) -2.7% (-9.4) -3,1% Earnings before interest and taxes (EBIT) % % Financial income % % Financial expenses % % Earnings before taxes (EBT) % % Taxes on income % % Consolidated net result % % Differences from currency translation % % Hedge reserve % % Items that may be relclassified subsequently to profit or loss Comprehensive income % % Earnings per share in basic diluted Investor Presentation page 21

22 Balance Sheet asofsep. 30th, 2014 Assets in m Sep. 30th, 2014 Dec. 31st, 2013 abs A. Non-current assets I. PP&E II. Intangible assets III. Financial assets IV. Deferred tax assets Total non-current assets B. Current assets I. Inventories II. Advance payments III. Trade receivables IV. Other current assets V. Derivative financial instruments VI. Cash and cash equivalents Total current assets Equity and Liabilities in m Sep. 30th, 2014 Dec. 31st, 2013 abs A. Equity I. Capital subscribed II. Capital reserves III. Other reserves IV. Profit and Loss carried forward Total equity B. Non-current liabilities C. Current liabilities I. Trade payables II. Financial liabilities III. Derivative financial instruments IV. Other current liabilities V. Tax liabilites VI. Provisions VII. Deferred income Total current liabilities Investor Presentation page 22

23 Cash Flow 9M 2014 in m 9M M 2013 EBT Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net change of cash and cash equivalents Cash on hand, bank deposits, cheques Investor Presentation page 23