investor & analyst presentation...2015/11/23 · investor & analyst presentation german...
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Investor & Analyst PresentationGerman Equity Forum, Frankfurt, Nov. 23rd – 25th, 2015
Dr. Cornelius Patt, CEO
Andreas Grandinger, CFO
Investor & Analyst Presentation EKF 201511 | page 2
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 orimplied by such forward-looking statements or anticipated on the basis of historical trends. Further information about risks anduncertainties affecting zooplus is included throughout our most recent annual and interim reports, which are available on thezooplus website, www.zooplus.de. 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 relevantforward-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 whichdiffer 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.
Safe Harbor Statement
Investor & Analyst Presentation EKF 201511 | page 3
194257
336
427
571
~ 740
> 900
> 1,100
2010 2011 2012 2013 2014 2015e 2016e 2017e
zooplus strong sales growth will continue and more than € 1.1 bn total sales should be reached already by 2017
Total sales 2010 – 2017e
+ 63
+ 79
+ 91
in € m,based on organic growth in European countries
33% 31% 27% 34%Total sales growth vs. PY
+ 144
22%
+ 169
> 160
> 200
22%
New customer sales (1st year)
Repeat customer sales
Total sales
Retention rate93%93%
94%91%
85%79%
81% 9M32%
Investor & Analyst Presentation EKF 201511 | page 4
In a large and fragmented niche market zooplus dominates online – and is rapidly catching up with the offline leaders
Market share zooplus and competitors 2014
~ 50 % market share zooplus online
~ 2.6 % market share online and offlineCAGR: 2011-14: 30%
Net sales:
€ 0.54 bn
Total pet supplies market Europe (incl. VAT):
~ € 25 bn (~ € 21 bn net)
CAGR: 2011-14: 2 - 3%
Source: Euromonitor, company information, zooplus estimation; 1 online share of total net sales
Growth 2014: 7%
Total net sales:
~ € 1.4 bn
Online 2014: ~ € 0.04 bn(+ 3% vs. PY)
Growth 2014: 10%
Total net sales:
€ 0.9 bnOnline: € ~ 0.01 bn (< 2%)1
Net sales:
~ € 0.25 bn
Other onliners:
Investor & Analyst Presentation EKF 201511 | page 5
» Net sales ~ € 710 m
» Double-digit sales growth rates in all countries
» zooplus market share of total market 3.4%
Net sales 2015e
HU
Source: zooplus net sales, unaudited data, rounded to 5 m EUR steps, growth rates compared to 2014, rounded to 5%p-steps; market shares based on extrapolation of Euromonitor 2013 market data, zooplus estimation 2% growth p.a.
70 m
Total market 2015
Net sales zooplus
DK, SE, FI, NO
D,A,CH
PL, CZ, SK, HU, RO, SI, HR, BG, TR, GR
ES, PT
zooplus is the online market leader in all geographies of Europe – with the widest possible base for further growth
NL, BE, LU
+30%
+45%
+30%
+40%
+30%
+50%
+20%
+25%
40 m
80 m
235 m70 m
120 m
40 m
55 m~710 m
zooplusmarket share
5.2%
1.6%
2.7%
2.6%
2.1%
4.1%
5.3%
2.9%
3.4%
21 bn
Size of total marketoffline and online (net sales)
Investor & Analyst Presentation EKF 201511 | page 6
94%
Customer loyalty – the winning factor of the business model – is further improving
Retention rates – Cohort analysis (Net sales incl. VAT in € m)
90 86 85 86
~ 510
55 46 45 44
~ 200
100
62 56 55
125
87 79
135
105
174
2011 2012 2013 2014 2015e
100%
84% 98%
63%90%
70%
Ø 79%
Ø 85%
<=2009<=2009<=2009
2010 a+1 2010 a+2 2010 a+3
2011 a
2011 a+1 2011 a+2
2012 a
2012 a+1
Ø 91%
2013 a
2014 a
<= 2009to
2014 a+1
91%
+ 3 %p
2015 a
2013 a+1
2012 a+2
2011 a+3
2010 a+4
<=2009
78%
99%
99%
101%
94%
Ø 94%
Reading example: 2011 a+1= sales of 2011’s new customers in 2012
Investor & Analyst Presentation EKF 201511 | page 7
Account value and customer account retention increasesignificantly with length of customer life
151
235 235 242256
273
354
a a+1 a+2 a+3 a+4 a+5 … a+10
Sales per active account 2014 (in €)
Cumulated sales per account created over ten years:
€ 1,290
100% (1) 77% 61% 54% 50% 46% 33%Remaining accounts
a: year of acquisition
(1): customers with at least one consecutive purchase after first transaction.
Investor & Analyst Presentation EKF 201511 | page 8
Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in 9M 2015
Gross Margin & Cost structure
4.8% 4.5% 3.7% 3.4% 3.3%
7.0%4.8%
4.0% 4.1% 3.9%
22.9%
21.7%20.2% 19.2% 18.7%
5.8%
2.5%
1.7%1.4% 1.2%
2011 2013 2014 9M 2015 Q3 2015
» Margin reduction mainly due to higher food share and exchange rate effects
» Extremely efficient marketing and new customer acquisition
» Further cost reduction in logistics
» Scaling effects in personnel
40.5%
29.6%
IT/Admin/Payment (incl. depreciation & interest)
Advertising/Marketing
Logistics Personnel
in % of total sales
28.1% 27.1%
31.2% 29.8%34.5%Gross Margin30.1%
…
33.5%
9M 201538.9%
Investor & Analyst Presentation EKF 201511 | page 9
Unit economics will further improve in logistics
20.2%18.1%
13.8% 14.1% 15.0%
23.9%
20.6%
zoopluslogistics
all-in
zoopluslogistics
onlyvariable
PL CZ DE ES ES
Logistics costs1 2014
1 Inbound & outbound logistics, line haul, distribution, packagingas a percentage of total sales
best-in-class
Q3 2015
Investor & Analyst Presentation EKF 201511 | page 10
zooplus continues on its profitable growth path
in € m
6.1
9.1
9M 2014 9M 2015
Earnings before tax (EBT)
+ 3.0
In % total sales
1.5 % 1.7 % 1.6 % 1.2 %
» Total sales growth + 32%
» Accessories sales growth impacted by FX development
» FX impact on purchasing costs compensated by higher other income and cost savings
» Start-up costs of new French fulfillment center compensated by additional efficiency gains.
Investor & Analyst Presentation EKF 201511 | page 11
zooplus shows largely positive results in repeat customer business, overall result impacted by customer acquisition
Net sales & EBT distribution 2014 (€ m) - unaudited
Net sales
% oftotal z+
EBT EBT-margin
174 32% - 6 - 3%
Net sales
% oftotal z+
EBT EBT-margin
369 68% 15 + 4%
New customers(sales in the year of acquisition)
Repeat customers(consecutive year’s sales)
Total zooplus
EBT zooplus 2014: € 8.8 m
» Further efficiency gains especially from continued built-up of pan-European logistics
» Scaling effects in IT/Admin and personnel
» Strategic advantages from size (purchasing power / private label)
Outlook:
Investor & Analyst Presentation EKF 201511 | page 12
Countries with optimized supply chains show EBT-margins for repeat customer business of 5% already today
Net sales
% oftotal z+
EBT EBT-margin
80 15% - 3 - 3%
94 17% - 3 - 3%
174 32% - 6 - 3%
Net sales
% oftotal z+
EBT EBT-margin
218 40% 11 + 5%
151 28% 4 + 3%
369 68% 15 + 4%
New customers(sales in the year of acquisition)
Repeat customers(consecutive year’s sales)
Direct / optimized supply chain 1
Indirect / intermediate
stage supply chain 2
Total
EBT zooplus 2014: € 8.8 m1 DE, AT, CH, NL, BE, PL, CZ2 Other countriesSource: zooplus data (unaudited)
Net sales & EBT distribution 2014 (€ m) - unaudited
Investor & Analyst Presentation EKF 201511 | page 13
Logistics capacity will be doubled in the next three years, product quality and efficiency will further improve
2013
Q1/2015
Fulfillment center (FC) Potential FC under investigation
2009
» FC in Chalon-sur-Saône started in Q1/2015
» Capacity increase in other existing fulfillment centers
» Overall capacity increase by 40% since beginning of 2015
» All FCs operated by partners; no capex for zooplus
» Orderrouting and packing algorithms intellectual property of zooplus
2000/2011
Q1/2015
Investor & Analyst Presentation EKF 201511 | page 14
zooplus logistics system is a complex network solutionbetween fulfillment centers and destination countries
Example Cat‘s Best Ökoplus (cat litter): article flow betweenfulfillment centers and country of destination for last 91 days
Country of
destination
Fulfillment
center
WRO
TIL
HOE
SBX
CHA
Investor & Analyst Presentation EKF 201511 | page 15
zooplus logistics structure is tailor-made for heavy and bulky products in inbound and outbound logistics
amazonlogistics(example)
zoopluslogistics
Source: zooplus
Source: DiePresse.com; dpa
Investor & Analyst Presentation EKF 201511 | page 16
zooplus shareholder structure is very much focused on growth and mid-term value creation
November 2015
Capital Research 12.68%
Ruane, Cunniff& Goldfarb
10.01%
Management 5.34%
Others 50.85%
Maxburg Beteili-gungen GmbH & Co. KG 13.67%
Deutsche Asset & Wealth4.23%
Source: information from notification of voting rights and company information; data as of November 19th, 2015
No. of shares: 6,991,478
Market cap: ~ € 910 m
Jan 2nd, 2015: € 66.70
Nov 19th, 2015: € 130.00
Delta: + 95%
Financial calendar 2016:
Jan 28th:Preliminary sales 2015
March 23rd:Annual results 2015
April 21st:Preliminary sales Q1 2016
May 19th:Q1 report 2016
Pelham Capital 3.22%
Investor & Analyst Presentation EKF 201511 | page 17
Liquidity in the zooplus stock has strongly increased
Ø per day€ 417 k
2014 2015 Daily tradingvolume in €
Source: Deutsche Börse (xetra), data until October 30th, 2015
Ø per day€ 1,500 k
Burda < 50% share in zooplus
zooplus capitalincrease
Investor & Analyst Presentation EKF 201511 | page 18
Current guidance for total sales and EBT
2015e ~ 740 + 30 %
Total sales (€ m)
2014 571 + 34 %
EBT (€ m)
~ 12
8.8
Guidance
Net sales (€ m)
~ 710 + 31 %
543 + 33 %
Investor & Analyst Presentation EKF 201511 | page 19
In summarizing : zooplus – a sustainable growth story
Attractive market with further growth potential (market volume ~ € 25 bn)
Market leader in e-commerce, closing up on the biggest offliners
Integrated logistics-structure for pan-European sourcing and fulfilment
Growth driven by a large and growing loyal customer base
Cost leadership – online and across all channels
Experienced management team with a share in the company and with a clear and focused strategy
1.
2.
3.
4.
5.
6.
Well prepared for future value creation
Investor & Analyst Presentation EKF 201511 | page 20
Back-up: Key Financials
Investor & Analyst Presentation EKF 201511 | page 21
Key Financials Q3 2015
P&Lin € m
Q3 2015 Q3 2014 ∆∆∆∆ abs ∆∆∆∆%p
Total sales 187.2 146.4
∆ abs. 40.8
∆ in % 27.8%
COGS130.9
69.9%100.8
68.9%30.1
1.1%p
Logistics35.1
18.8%29.2
19.9%5.9
-1.2%p
Payment1.7
0.9%1.6
1.1%0.1
-0.2%p
Customer acquisition2.2
1.2%2.6
1.8%-0.4
-0.6%p
Personnel6.1
3.3%5.1
3.5%1.0
-0.2%p
G&A5.3
2.8%3.9
2.7%1.4
0.1%p
EBITDA5.8
3.1%3.1
2.1%2.7
1.0%p
I&DA0.3
0.1%0.3
0.2%0.0
-0.1%p
EBT5.5
2.9%2.8
1.9%2.7
1.0%p
Investor & Analyst Presentation EKF 201511 | page 22
Profit & Loss 9M 2015
in € m9M 2015 9M 2014
abs % abs %
Sales 511.0 96.2% 384.8 95.4%
Other income 20.2 3.8% 18.5 4.6%
Total sales 531.2 100.0% 403.4 100.0%
Cost of materials -372.8 -70.2% -276.0 -68.4%
Personnel costs -18.1 -3.4% -15.6 -3.9%
Depreciation -0.6 -0.1% -0.5 -0.1%
Other expenses -130.5 -24.6% -104.8 -26.0%
thereof logistics / fulfillment (-102.2) -19.2% (-81.9) -20.3%
thereof marketing (-7.5) -1.4% (-7.0) -1.7%
thereof payment (-5.5) -1.0% (-4.9) -1.2%
thereof other costs (-15.3) -2.9% (-11.0) -2.7%
Earnings before interest and taxes (EBIT) 9.3 1.7% 6.4 1.6%
Financial income 0.0 0.0% 0.0 0.0%
Financial expenses -0.2 0.0% -0.3 -0.1%
Earnings before taxes (EBT) 9.1 1.7% 6.1 1.5%
Taxes on income -3.4 -0.6% -2.3 -0.6%
Consolidated net result 5.7 1.1% 3.8 0.9%
Differences from currency translation -0.3 -0.1% 0.1 0.1%
Hedge reserve -1.2 -0.2% 1.3 0.3%
Items that may be relclassified subsequently to profit or loss -1.5 -0.3% 1.4 0.4%
Comprehensive income 4.2 0.8% 5.2 1.3%
Earnings per share in €
basic 0.82 - 0.62 -
diluted 0.80 - 0.60 -
Investor & Analyst Presentation EKF 201511 | page 23
Balance Sheet as of Sep. 30th, 2015
Assets Equity and Liabilities
in € m Sep. 30th, 2015 Dec. 31st, 2014 ∆∆∆∆ abs
A. Non-current assets
I. PP&E 1.2 0.8 0.5
II. Intangible assets 9.4 8.6 0.8
III. Other financial assets 0.0 0.0 0.0
IV. Deferred tax assets 2.7 4.2 -1.5
Total non-current assets 13.4 13.6 -0.2
B. Current assets
I. Inventories 60.6 65.0 -4.4
II. Advance payments 2.4 0.5 1.9
III. Accounts receivable 15.2 12.1 3.1
IV. Other current assets 7.4 13.1 -5.7
V.Derivative financialinstruments
0.5 2.3 -1.8
VI. Cash and cash equivalents 43.4 32.0 11.4
Total current assets 129.5 125.0 4.5
142.9 138.6 4.3
in € m Sep. 30th, 2015 Dec. 31st, 2014 ∆∆∆∆ abs
A. Equity
I. Capital subscribed 7.0 7.0 0.0
II. Capital reserves 92.6 92.0 0.6
III. Other reserves 0.2 1.7 -1.5
IV. Profit and Loss carried forward -8.7 -14.5 5.8
Total equity 91.0 86.2 4.8
B. Non-current liabilities 1.6 1.2 0.3
C. Current liabilities
I. Accounts payable 19.3 23.4 -4.1
II. Other current liabilities 23.4 20.1 3.3
III. Tax liabilites 0.8 2.0 -1.2
IV. Provisions 4.9 4.1 0.8
V. Deferred income 1.9 1.5 0.4
Total current liabilities 50.3 51.1 -0.8
142.9 138.6 4.3
Investor & Analyst Presentation EKF 201511 | page 24
Cash Flow 9M 2015
EBT 9.1 6.1
Cash flow from operating activities 13.6 -0.9
Cash flow from investing activities -1.9 -3.4
Cash flow from financing activities 0.0 10.4
Net change of cash and cash equivalents 11.5 6.1
Cash on hand, bank deposits, cheques 43.4 11.8
in € m 9M 2015 9M 2014
Investor & Analyst Presentation EKF 201511 | page 25
Profit & Loss 2014
in € m2014 2013
abs % abs %
Sales 543.1 95.1% 407.0 95.3%
Other income 27.8 4.9% 19.9 4.7%
Total sales 570.9 100.0% 426.9 100.0%
Cost of materials -393.0 -68.8% -279.8 -65.5%
Personnel costs -21.2 -3.7% -19.3 -4.5%
Depreciation -0.7 -0.1% -0.7 -0.2%
Other expenses -146.8 -25.7% -123.0 -28.8%
thereof logistics / fulfillment (-115.1) -20.2% (-92.7) -21.7%
thereof marketing (-9.9) -1.7% (-10.7) -2.5%
thereof payment (-6.9) -1.2% (-6.2) -1.4%
thereof other costs (-14.9) -2.6% (-13.4) -3.1%
Earnings before interest and taxes (EBIT) 9.2 1.6% 4.2 1.0%
Financial income 0.0 0.0% 0.0 0.0%
Financial expenses -0.4 -0.1% -0.4 -0.1%
Earnings before taxes (EBT) 8.8 1.5% 3.8 0.9%
Taxes on income -3.5 -0.6% -2.0 -0.5%
Consolidated net result 5.2 0.9% 1.8 0.4%
Differences from currency translation 0.0 0.0% 0.1 0.0%
Hedge reserve 1.6 0.3% 0.1 0.0%
Items that may be relclassified subsequently to profit or loss 1.6 0.3% 0.2 0.0%
Comprehensive income 6.8 1.2% 1.9 0.5%
Earnings per share in €
basic 0.83 - 0.29 -
diluted 0.80 - 0.80 -
Investor & Analyst Presentation EKF 201511 | page 26
Balance Sheet as of Dec. 31st, 2014
Assets Equity and Liabilities
in € m Dec. 31st, 2014 Dec. 31st, 2013 ∆∆∆∆ abs
A. Non-current assets
I. PP&E 0.8 0.5 0.3
II. Intangible assets 8.6 4.9 3.7
III. Financial assets 0.0 0.0 0.0
IV. Deferred tax assets 4.2 6.9 -2.7
Total non-current assets 13.6 12.5 1.1
B. Current assets
I. Inventories 65.0 43.7 21.3
II. Advance payments 0.5 0.3 0.2
III. Trade receivables 12.1 10.8 1.3
IV. Other current assets 13.1 10.9 2.2
V.Derivative financialinstruments
2.3 0.0 2.3
VI. Cash and cash equivalents 32.0 5.6 26.4
Total current assets 125.0 71.3 53.7
138.6 83.7 54.9
in € m Dec. 31st, 2014 Dec. 31st, 2013 ∆∆∆∆ abs
A. Equity
I. Capital subscribed 7.0 6.1 0.9
II. Capital reserves 92.0 50.3 41.7
III. Other reserves 1.7 0.0 1.7
IV. Profit and Loss carried forward -14.5 -19.7 5.2
Total equity 86.2 36.7 49.5
B. Non-current liabilities 1.2 0.5 0.7
C. Current liabilities
I. Trade payables 23.4 16.2 7.2
II. Financial liabilities 0.0 13.0 -13.0
III.Derivative financialinstruments
0.0 0.1 -0.1
IV. Other current liabilities 20.1 12.7 7.4
V. Tax liabilites 2.0 0.8 1.2
VI. Provisions 4.1 2.7 1.4
VII. Deferred income 1.5 1.0 0.5
Total current liabilities 51.1 46.5 4.6
138.6 83.7 54.9
Investor & Analyst Presentation EKF 201511 | page 27
Cash Flow 2014
EBT 8.8 3.8
Cash flow from operating activities 2.8 -3.5
Cash flow from investing activities -4.7 -4.6
Cash flow from financing activities 28.1 10.6
Net change of cash and cash equivalents 26.3 2.7
Cash on hand, bank deposits, cheques 32.0 5.6
in € m 2014 2013