Investor & Analyst Presentation Semi-Annual Report Dr. Cornelius Patt, CEO Andreas Grandinger, CFO August 19th, 2014

Transcription

1 Investor & Analyst Presentation Semi-Annual Report 2014 Dr. Cornelius Patt, CEO Andreas Grandinger, CFO August 19th, 2014

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 timetotime 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 & Analyst Presentation page 2

3 H1 2014: Continuation of focused growth strategy» Total sales increased by 29% to 257 m European market leader position in online retailing sustained Guidance for total sales 2014 increased from 500 m to at least 530 m» Price-competitive market environment First small competitors are struggling» Further significant scaling effects and efficiency gains in cost structure Improvements in all cost positions» Positive result before tax (EBT) of 3.3 m Increased by 3.8 m compared to prior year Guidance for 2014 of around EUR 6 m confirmed Investor & Analyst Presentation page 3

4 Total sales growth continues to be main focus of zooplus strategy Total sales (e) » Double-digit growth in all major markets » Successful development of second brand bitiba » Growth both in repeat and new customer business» International sales share: 69% (PY 63%) in m (e) Investor & Analyst Presentation page 4

5 Strong quarter on quarter net sales development 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter in m Investor & Analyst Presentation page 5

6 Q2 sales growth almost on growth level of Q1 sales Total sales H1 Total sales Q % + 28 % H H Q Q in m Investor & Analyst Presentation page 6

7 zooplus with positive earnings before tax (EBT) in H Earnings before tax (EBT) H H Q Q in m Investor & Analyst Presentation page 7

8 Customer loyalty the winning factor of the business model is further improving Retention rates Cohort analysis (Sales incl. VAT in m) + 6 %p + 3 %p Ø 88% 2011 a % 63% 72 90% % 53 98% 52 <=2009 Ø 85% Ø 79% 2012 a <= a 2012 a a a a a a % % <= % 2014 a 182 <= 2009 to 2013 a+1 418» New all-time high of total retention rate for 2014 expected» Dog and cat food customers with highest loyalty» Increase in new customer sales e Investor & Analyst Presentation page 8

9 Further efficiency gains and scaling effects lead to a total cost ratio of less than 30% in Q Gross Margin & Cost structure 36.2% 34.5% 31.8% 31.4% Gross Margin 36.9% 4.6% %p 33.5% 2.5% %p 30.6% 29.8% 1.7% 1.6% 22.9% 21.7% 20.5% 20.1% 5.0% 4.8% 4.3% 4.2%» Very efficient marketing and new customer acquisition» Further cost reduction in logistics» Scaling effects in IT/Admin and personnel 4.5% 4.5% 4.1% 3.9% H Q Advertising/ Marketing In % of total sales, Logistics IT/Admin (incl. depreciation & interest) Personnel Investor & Analyst Presentation page 9

10 However, competition is intense and zooplus is prepared to keep competitors at a distance DE, FR, UK Massive resources Highest stakes at risk Greatest number / irrational behavior Investor & Analyst Presentation page 10

11 Therefore, sales growth and retention rate are key to further strengthening of market position Locked-in total sales over 5-year period » 3-4 times of current customers sales already locked in for next 5 consecutive years » Reduced cost of acquisition and increased new customer sales show that there is no threat of saturation in m» Sales growth translates into higher sales and better profitability in following years Total sales Retention 85 % 85 % 88 % Investor & Analyst Presentation page 11

12 The benefits of strong sales growth translate into future profitability Operating leverage» Every doubling of sales significantly improves the total cost ratio» Positive impact on margin by better purchasing power and private label improvement Strategic leverage» zooplus growth means less growth for competitors with negative impact on their operating leverage» Growth helps to consolidate the market and improve clear market leadership position of zooplus in online business» zooplus can close the gap towards the market leaders in Europe (both online and offline together) Financial leverage» Higher sales volume on a given rate of return leads to higher result in absolute terms. Sales growth not limited for next 10 years» Sales growth leads to better earnings perspective in following years for zooplus compared to companies that see no or very small growth Investor & Analyst Presentation page 12

13 Main focus for 2014 is sales growth by a deeper exploration of existing zooplus markets in Europe» Deeper exploration of existing countries» International rollout second brand bitiba» Prepare next step in international logistics structure» Further improve cost structure HU zooplus headquarter Local office Fulfilment center Potential locations (FC) under investigation Investor & Analyst Presentation page 13

14 In summarizing : zooplus a sustainable growth story 1. Attractive market with further growth potential (market volume ~ 25 bn) 2. Market leader in e-commerce, closing up to the biggest offliners 3. Growth driven by a large and growing loyal customer base 4. Integrated logistics-structure for pan-european sourcing and fulfilment 5. Cost leadership online and across all channels 6. Experienced management team with a clear and focused strategy Well prepared for future value creation Investor & Analyst Presentation page 14

15 Current guidance for 2014 Total sales: at least 530 m EBITDA: around 8 m EBT: around 6 m Equity ratio: between 30 % - 40 % Investor & Analyst Presentation page 15

16 The zooplus share Jan. 2nd, 2013: Aug. 15th, 2014: 47,00 Market capitalization: ~ 300 m + 39 % Shareholder Structure Financial calendar % 4.99 % % % 1 BURDA heldby: Burda Digital Ventures GmbH BDV Beteiligungen GmbH & Co. KG Burda GmbH 2 Others (incl. Management) October 21, 2014 Preliminary sales figures Q3/2014 November 18, 2014 Report Q3/ % Ruane, Cunniff & Goldfarb Inc. 4 Capital Research November 24-26, 2014 German Equity Forum % 2 5 Wasatch Advisors 6 Deutsche Asset & Wealth Management Investment Investor & Analyst Presentation page 16

17 Semi-Annual report 2014 Thank you for your attention! Investor & Analyst Presentation page 17

18 Backup: Key Financials Q P&L in m Q Q abs % Total sales » Total sales up 28%, adding 28.9 m on prior year period abs in % 28.4% COGS Logistics Payment Customer acquisition Personnel % % % % % % % % % % %p -1.8%p -0.2%p -1.1%p -0.6%p» Significantly increased efficiency in logistics (-1.8%p), customer acquisition (-1.1%p), personnel (-0.6%p) and G&A (-0.5%p)» Total cost ratio of 29.8% (previous year 34.1%) G&A % % %p EBITDA % % %p I&DA % % %p EBT % % %p Investor & Analyst Presentation page 18

19 Profit & Loss H in m H H abs % abs % Sales % % Other income % % Total sales % % Cost of materials % % Personnel costs % % Depreciation % % Other expenses % % thereof logistics / fulfillment (-52.7) -20.5% (-44.4) -22.3% thereof marketing (-4.4) -1.7% (-6.0) -3.0% thereof payment (-3.3) -1.3% (-2.9) -1.4% thereof other costs (-7.1) -2.8% (-6.6) -3,4% 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 basic diluted Investor & Analyst Presentation page 19

20 Balance Sheet as of June 30th, 2014 Assets in m Jun. 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 Jun. 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 & Analyst Presentation page 20

21 Cash Flow H in m H H 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 & Analyst Presentation page 21