Investor & Analyst Presentation - zooplus AG · 2020-02-18 · Investor & Analyst Presentation H1...

Investor & Analyst PresentationSemi-Annual Report 2017

Dr. Cornelius Patt, CEO

August 22th, 2017

Investor & Analyst Presentation H1 201708 | 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 or implied 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 the zooplus 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 relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. zooplusneither 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


zooplus’ profitable sales growth continued in H1 2017

» Sales increased by 21% to € 517 m

− European market leader position in online retailing sustained

− Double-digit growth rates in all 30 European markets

» Further improvement of cost structure

− Ramp up costs for logistics and investments in more IT development capacity impact cost structure

» Positive result before tax (EBT) of € 5.1 m

− On same level as in prior year, still unfavorable GBP/EUR development

» Positive free cash flow of € 7.4 m

− Growth financed from operating cash flow

» Sales and EBT guidance for 2017 confirmed

− Sales of more than € 1,125 m expected

− Earnings before tax (EBT) between € 17 m and € 22 m


zooplus continues to put sales growth and customer retention first

Sales 2011-2017e (€ m)

1) in local currencies2014

543

2013

407

2012

319

2011

245

+88

+74

+136

2017e

>1,125

2016

909

2015

711

+198

+216

+168

79%85%

91%

94%93%1

92%94%1

28%31%33%28%30%38%Sales growth vs. PY

Repeat customer sales

New customer sales (1st year)

24%

H1:94%1


Sales of more than € 500 m in H1 2017

428

517

H1 2016 H1 2017

23%

9%

Food Non-Food

+ 21%

exchange rate adjusted + 22%

Sales (€ m) Sales growth by category (H1 2017)


Sales growth in Q2 2017 has been lower than in Q1 2017

221

260

Q2 2016 Q2 2017

+ 18%

exchange rate adjusted + 19%

Sales (€ m)

» Sales retention rate of existing customer business on record levels of 94%

» More selective within new customer business

� Focus on registered new accounts

� Google bidding on high retention customers

� More restrained customer discounts

» 2017 with five working days less in Q2 than in Q1


H1 2016 H1 2017

Markets continue to be price competitive – zooplus well prepared to defend it’s strategic position

H1 2016 H1 2017

» Continued focus on sustainable dog/cat food customers for higher life-time-value

» Ongoing price competition in the markets

» zooplus will defend it’s high customer retention

- 0.4 %p

24.9 % 24.5 %

in % of sales

1 Share of food and cat litteron sales

+ 1.7 %p

82.0 % 83.7 %

H1 2016 H1 2017

in % of sales

- 0.3 %p

29.6 % 29.3 %

3 Gross margin + other income on sales2 Sales - CoGS

Total margin 3Gross margin 2Product mix 1


3.2% 3.4%

2.9% 3.1%

19.7% 19.4%

1.6% 1.4%

H1 2016 H1 2017

28.3%

Cost leadership position in H1 2017 sustained

Total margin1

1.7%

1 Gross margin + other income on sales

» Ramp-up and start-up costs for new fulfillment centers in Antwerp and Birmingham

» Investment into more internal IT development resources

IT/Admin/ (incl. depreciation & interest)

Advertising/Marketing

Logistics2 Personnel

1.0% 1.0%

Payment

28.4%

29.3%29.6%

- 0.1 %p

Total margin & Cost structure (in % of sales)(in % of sales)(in % of sales)(in % of sales)

2 € 1.0 m logistics costs of H1 2017 reclassifiedto depreciation according to IAS 17 (finance lease)


3.2% 3.2%

3.0% 3.1%

19.7% 19.3%

1.5% 1.4%

Q2 2016 Q2 2017

28.0%

Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in Q2 2017

Total margin1

1.7%

1 Gross margin + other income on sales



Logistics2 Personnel

1.0% 1.0%

Payment

28.4%

28.7%29.4%

- 0.4 %p


2 € 0.5 m logistics costs of Q2 2017 reclassifiedto depreciation according to IAS 17 (finance lease)


5.0% 3.9% 3.5% 3.2% 3.4%

5.6%2.9% 3.5% 2.7% 3.1%

24.0%

21.2% 20.1%19.4%

1.0%

6.1%

1.8%1.5%

1.4%

19.4%

2011 2014 2015 2016 H1 2017

28.3%

zooplus will continue it’s strong effort to further improve cost leadership position in the category

31.6% 29.8%32.8%Total margin1

…

40.9%

1.7%

1.3% 1.1% 1.1%

42.4%

29.8%27.8%

31.1%

1 gross margin + other income on sales

1.4%

29.3%



Logistics2 PersonnelPayment


2 € 1.0 m logistics costs of H1 2017 reclassified to depreciation according to IAS 17


zooplus earnings before tax (EBT) on same level as previous year

5.7

7.3

H1 2016 H1 2017

5.1 5.1

H1 2016 H1 2017

+ 1.6 + 0.0

in % of sales 1.3 % 1.4 % in % of sales 1.2 % 1.0 %

EBITDA (€ m) EBT (€ m)

€ 1.0 m logistics costs of H1 2017 reclassified to depreciation according to IAS 17


Cash flow fromoperatingactivities

Cash flow frominvestingactivities

Free cash flow

Free cash flow continues to be positive in H1 2017

1.3 % 1.1 %

Cash flow fromoperatingactivities

Cash flow frominvestingactivities

Free cash flow

H1 2016 H1 2017

10.8

10.6

- 3.3

7.4- 1.9

8.7

Free cash flow (€ m)


Markets continue to be highly competitive – zooplus with clear online market leadership position

Market share zooplus and competitors 2016

Source: Euromonitor; company information, zooplus estimation

CAGR: 2011-16: + 30%2016: € 0.9 bn

Total pet supplies market Europe (incl. VAT):

~ € 26 bn (~ € 22 bn net)

CAGR: 2011-16: 2-3%

Net sales 2016 :

~ € 1.6 bn (+8%)

Online: ~ € 0.05 bn(+ 22% vs. PY)

Net sales 2016:

Online: ~ € 0.03 bn

Net sales

Other onliners:

Fressnapf

Net sales

~ € 1.0 bn (+9%)

Pets at Home

2016: n/a

~ 50% market share zooplus online

~ 4% market share online and offline


Sales 2017

HU

Source: zooplus sales, unaudited data, growth rates compared to H1 2016; market shares based on Euromonitor 2016 market data and zooplus estimation

84 m

Total market 201622 bn

Sales zooplusin 2016

DK, SE, FI, NO

D,A,CHCZ, SK, HU, RO, SI, HR, BG, TR, GR, LV. LT, EE

ES, PT

zooplus is the online market leader in all geographies of Europe – with the widest possible base for further growth

NL, BE, LU

+25%

+10%

+24%

+21%

+18%

+34%

+18%

+21%

56 m

102 m

285 m

45 m

153 m

52 m

75 m

909 m

zooplusmarket sharein 2016

5.4%

2.1%

4.3%

3.1%

3.2%

3.5%

5.9%

3.7%

4.1%

» Sales H1 2017: € 517 m, sales growth rate +21%

» Double-digit sales growth rates in all countries

UK, IE

IT

FR, MC

Sales growth in H1 2017

57 m

9,4%

+39%

PL


» New fulfillment center (FC) in Antwerp started end Q4 2016 still in ramp up phase

» Local FC in Birmingham started end of Q1 2017

» All centers managed as one integrated pan-European network

» All FCs operated by partners; no capex for zooplus

» Order routing and packing algorithms intellectual property of zooplus

2013

2015

Fulfillment center (FC)

2009

2015

Q4/2016

Q1/2017

Hubs (DSP)*

*Shown are selected relations from FC to Hub – in total zooplus has approx. 60 relations (40 linehauls + 20 direct DSP connections)

2000/2011

zooplus logistics infrastructure has been further improved

Strong internal IT development teams as driving force for future developments and differentiation

Investor & Analyst Presentation CMD 2017 | page 16

Strong differentiating factor towards the competition (ex. amazon)

Munich, DE Krakow, PL

Bucarest, RO(External partner)Madrid, ES

» Three internal IT-Hubs plus one external hub

» More than 120 IT developers – further built-up planned

» Additionally external experts as freelancers

» Organized by different Product Development Centers (PDCs)

» Focus on internal systems, processes &algorithms and product features


Retention and strong sales growth as primary zooplus’ business focus

Retention

Sales growth

Margin & cost structure

Profitability

Strong sales growth means:

» Keep the competition including amazon at a distance

» Faster reach of dominant market position

» Better purchasing terms in all areas (COGS & other services)

» Broader share of private label products

» More efficiency gains

» More scale in overhead


Sales and EBT guidance for full year 2017

Guidance

Profit guidance 2017 based on FX levels January 2017.

909 (+28%) 17.9

EBT (€ m)Sales (€ m)

2017e

2016

>1,125 (>+24%) 17 - 22


H1 2017 results

Q & A


Back-up: Key Financials


Key Financials Q2 2017

P&Lin € m

Q2 2017 Q2 2016 ∆∆∆∆ abs ∆∆∆∆%p

Sales 259.8 220.6

abs. 39.2 52.3

∆ in % 17.8% 31.1%

Other income13.2

5.1%11.3

5.1%+1.9

0.0%p

COGS198.4

76.4%167.1

75.7%+31.3

+0.7%p

Logistics50.0

19.3%43.5

19.7%+6.5

-0.4%p

Payment2.6

1.0%2.2

1.0%+0.4

0.0%p

Customer acquisition3.8

1.4%3.4

1.5%+0.4

-0.1%p

Personnel8.3

3.2%7.1

3.2%+1.2

0.0%p

G&A7.0

2.7%6.2

2.8%+0.8

-0.1%p

EBITDA2.8

1.1%2.5

1.1%+0.3

0.0%p

I&DA1.1

0.4%0.3

0.1%+0.8

+0.3%p

EBT1.7

0.7%2.2

1.0%-0.5

-0.3%p

EPS in EUR (basic) 0.11 0.19

Balance Sheet

Total Assets 209.9 207.6

Equity (Ratio in %)111.1

53.0%107.9

52.0%


Profit & Loss H1 2017

in € mH1 2017 H1 2016

abs % abs %

Sales 516.7 100.0% 428.4 100.0%

Other income 24.9 4.8% 20.2 4.7%

Cost of materials -390.2 -75.5% -321.7 -75.1%

Personnel costs -17.3 -3.4% -13.8 -3.2%

Depreciation -2.0 -0.4% -0.5 -0.1%

Other expenses -126.7 -24.5% -107.4 -25.1%

thereof logistics / fulfillment (-100.2) -19.4% (-84.3) -19.7%

thereof marketing (-7.3) -1.4% (-6.7) -1.6%

thereof payment (-5.2) -1.0% (-4.4) -1.0%

thereof other costs (-14.1) -2.7% (-12.0) -2.8%

Earnings before interest and taxes (EBIT) 5.3 1.0% 5.2 1.2%

Financial income 0.0 0.0% 0.0 0.0%

Financial expenses -0.2 0.0% -0.1 0.0%

Earnings before taxes (EBT) 5.1 1.0% 5.1 1.2%

Taxes on income -2.4 -0.5% -2.1 -0.5%

Consolidated net result 2.8 0.5% 3.1 0.7%

Differences from currency translation -0.2 -0.0% -0.1 -0.0%

Hedge reserve -1.8 -0.4% 1.3 0.3%

Items that may be reclassified subsequently to profit or loss -2.1 -0.4% 1.1 0.3%

Comprehensive income 0.7 0.1% 4.2 1.0%

Earnings per share in €

basic 0.39 - 0.44 -

diluted 0.39 - 0.43 -


Balance Sheet as of June 30st, 2017

Assets Equity and Liabilities

in € m June 30st, 2017 Dec. 31st, 2016 ∆∆∆∆ abs

A. Non-current assets

I. PP&E 15.1 15.9 -0.8

II. Intangible assets 11.2 9.0 2.2

III. Other financial assets 0.1 0.0 0.0

IV. Deferred tax assets 0.0 0.0 0.0

Total non-current assets 26.4 25.0 1.4

B. Current assets

I. Inventories 78.5 78.8 -0.3

II. Advance payments 5.0 1.6 3.4

III. Accounts receivable 21.2 19.2 2.0

IV. Other current assets 16.0 25.6 -9.7

V.Derivative financial instruments

0.0 2.5 -2.5

VI. Cash and cash equivalents 62.8 54.9 7.9

Total current assets 183.5 182.6 0.9

209.9 207.6 2.3

in € m June 30st, 2017 Dec. 31st, 2016 ∆∆∆∆ abs

A. Equity

I. Capital subscribed 7.1 7.1 0.1

II. Capital reserves 97.3 94.8 2.5

III. Other reserves -0.9 1.1 -2.1

IV. Profit carried forward 7.6 4.9 2.8

Total equity 111.1 107.9 3.3

B. Non-current liabilities 11.5 13.1 -1.7

C. Current liabilities

I. Accounts payable 46.2 48.5 -2.3

IIDerivative financialinstruments

0.3 0.0 0.3

III. Other current liabilities 22.9 21.4 1.5

IV. Tax liabilites 2.8 4.1 -1.3

V. Finance lease liabilities 2.1 2.2 0.0

VI. Provisions 10.3 8.1 2.3

VII. Deferred income 2.6 2.4 0.2

Total current liabilities 87.3 86.6 0.7

209.9 207.6 2.3


Cash flow H1 2017

in € m H1 2017 H1 2016

EBT 5.1 5.1

Cash flow from operating activities 10.8 10.6

Cash flow from investing activities -3.3 -1.9

Free cash flow 7.4 8.7

Cash flow from financing activities 0.5 0.1

Net change of cash and cash equivalents 7.9 8.7

Cash on hand, bank deposits 62.8 54.2

Investor & Analyst Presentation - zooplus AG · 2020-02-18 · Investor & Analyst Presentation H1...

Documents

Transcript of Investor & Analyst Presentation - zooplus AG · 2020-02-18 · Investor & Analyst Presentation H1...