Shoper - prezentacja inwestorska
30
Investor presentation August 2021 Your springboard to bigger e-commerce
Transcript of Shoper - prezentacja inwestorska
Investor presentationAugust 2021
Your springboard to bigger e-commerce
This material (and the information contained herein) (“Presentation”) was prepared by Shoper S.A. with its registered office in Kraków (the "Company") for informational
purposes only. In particular, it does not constitute an offer to sell, solicitation, or invitation to submit an offer or proposal to purchase financial instruments, nor should it be
treated as a source of knowledge sufficient to make an investment decision concerning the purchase of financial instruments, in particular on the territory of Poland.
The Presentation contains forward looking statements that reflect the current assessment of the Issuer or, as the case may be, the Management Board of the Company, with
respect to external factors, business strategy, plans and objectives of the Issuer for its future operations. These forward looking statements relate to the Issuer and the sectors
and industries in which the Company operates. Forward looking statements include statements that contain words such as "expects", "intends", "plans", "believes",
"anticipates", "has plans", “plans", "aims", "may", "would", "could" and other similar statements relating to future events or circumstances.
All forward looking statements in this Presentation address matters of risk and uncertainty. Accordingly, they constitute or may constitute important factors that could cause
actual circumstances to differ materially from those anticipated in or arising from these statements. All forward looking statements in this Presentation reflect the Company's
current expectations of future events and are subject to the impact of both these and other risks, uncertainties and assumptions concerning the Company's business,
performance, development strategy and liquidity. The Company does not undertake to publicly update or supplement any forward looking statements as a result of new
information, future events or otherwise. No representation, warranty or undertaking, express or implied, is made as to the accuracy, completeness and correctness of the
information or opinions contained in this Presentation.
Information contained herein is current as of the date of its publication and may be changed without prior notice, may also be incomplete or abridged, and may not contain all
relevant information concerning the Company. The Company is not responsible for the outcome of any decision or action taken on the basis of this Presentation.
The responsibility for the use of the information contained in this material lies solely with the person using this material.
Disclaimer
3
Agenda
Introduction1
Shoper Platform2
Market3
Strategy4
Financial data & KPI5
Introduction
Section 1
ansin.pl
CEO
Management Board
5
Marcin Kuśmierz 25 years in online and e-commerce
Former CEO of home.pl
Member of advisory boards in international tech companies
Experience in managing international expansion (Fly On the Cloud)
Krzysztof Krawczyk 16 years in e-commerce
Co-founder of Shoper
Author of the first SaaS e-commerce platform in Poland
Growth-oriented C-level executive with rich experience in product development
Unique knowledge of business and technology in e-commerce
COO, Co-Founder
Management Board
Paweł Rybak 17 years in online marketing and e-commerce
Former CEO of Sunrise System and Head of SEO BU at Bauer Media Group
Long track-record in local & international M&A
CCO
Management Board
Key management Experienced SaaS and e-commerce executives
Piotr Biczysko 21+ years in finance including tech companies
Former CFO of home.pl
Long track-record in executing M&ACFO
Management Board
One-stop-shopGrowing ecosystem of services needed by small & mid-size merchants
SEOSEO audit and benchmarking
Content marketing
Web analytics
Conversion analytics
Several tiers of monthly subscriptions
E-logistics
Integratino with parcel brokers and e-Logistics providers
Online securitySSL Certificates
DDoS protection
Online backup
Shoper ApplicationsOver 150 apps covering f. ex. invoicing, social media plug-ins, GDPR compliance, ERP integrations , stock management, price comparison engines , retargeting tools and CRM
Value added services (VAS)
Storefront design templates
Domain registration services
Cloud solutions(Office365)
PaymentsGateway for all types of payments e.g. BLIK, Credit cards, PBL, Google Pay
Online marketing
Online marketing tool for managing campaigns on Google, Facebook, Messenger, Instagram and Allegro
Shoper provides merchants operating in the e-commerce industry a ready-made SaaS platform for running an online store
Erp Box
Powerful engine to manage merchants’ multi-platform sales (domestic and international)
Multiple integrations (e.g. marketplaces, payments, wholesalers)
Managing orders, shipping and warehouse
Supporting back-office operations (e.g. invoicing, order management)
6Shoper ecosystem generates added sales
and binds merchants to the platform
2013 2014 2015 2016 2017 2018 2019
Revenues of Shoper[PLN m]
15+ years of experienceUnmatched knowledge of polish e-commerce and merchant needs
2018 2019 20202020
2005
Establishment of Shoperby Krzysztof and Rafał Krawczyk
2008
Introduction of aPartner Program
2010
Transition toSaaS model
2018
Roll-out of ShoperShipments
2020
Introductionof Shoper SEO
2015
Introduction ofShoper Payments
2017
Introduction ofShoper Premium
2019
Partnership with Allegro, Facebook
EBITDA and EBITDA margin of Shoper[management adjusted, PLN m]
Note: 2013 - 2017 revenues based on Polish Accounting Standards, 2018 – 2020 based on audited IFRS financial statements
2021
Acquisition of the Erp Box platform
LTM Q1 2021
4,1 5,1 7,7 9,813,3
20,527,9
46,953,5
6,510,7
21,825,0
46%38%32% 47%
LTM Q1 2021
2016
Roll-out of ShoperCampaigns
7LTM – 12 last months, from 1.04.2020 to 31.03.2021
2014
Roll-out of ShoperApplications
27%
26% 7%5%
4%4%3%
24%
Unthreatened leadership position of ShoperOur scale and financial resources provide major competitive advantage
Source: Company, international consulting company
Polish SaaS market structure by number of merchants, 2020, %
Shoper
Shoper Partners
Sky-Shop
IdoSell
WiX
Shoplo
Inni
With fewer resources for marketing, development and customer support, minor market players are unable to compete in the long run
Shoper’s offer is significantly more affordable than its foreign competitors (e.g. Shopify)
Our SaaS model provides customer stickiness
Shoper's local integrations complemented with a full services range is a great distinction to foreign players translating their websites
45%
12%
15%
9%
7%5%
7%
8
Market share as for combined SaaS & Open Source providers by number of merchants in Poland for 2020
Shoper
PrestaShop
Magento
IdoSell
Shoplo
Opencart
Inni
ZenCart
Shoper Platform
Section 2
10
Subscription plans designed for different customer needs
Shoper Standard is a basic subscription solution, with universal
functionality addressing a wide range of entrepreneurs
Shoper Standard targets micro, small and medium size companies which
are either just starting their business or expanding from brick-and-
mortar to online
Fees for Shoper Premium are linked to merchants’ GMV
Shoper Premium offers the services and functions that large online stores
need
10 625 11 32514 765 15 855
2018 2019 2020 Q1 2021
278642
1 029 1 168
2018 2019 2020 Q1 2021
Number of online stores under Shoper Standard subscription Number of online stores under Shoper Premium subscription
Shoper Premium is an advanced offer for more demanding merchants that
generate higher traffic. It offers high degree of customizations and more
advanced functionalities with dedicated support
Multiple subscription levels (Gold, Platinum and Diamond) to match
customers needs and volume of their business
Standard Shoper Shoper Premium
CAGR +18%
CAGR +92%
Note: The Company also provides private label online shop solution for selected domestic and international partners. Number of merchants in this segment amounted to 4 788 in 2020 and is decreasing due to focus
on Standard and Premium offer
Source: Company
Shipment module integrated into store software
Full coverage of parcel shipments providers in Poland, directly and via parcel brokers
Negotiated preferential rates for Shoper merchants
Comprehensive, flexible and growing services offer within one platform
Preparation, optimization and implementation of advertising campaigns for the merchants
Shoper currently has partnerships with Facebook, Google, Allegro and Instagram
Merchants can easily launch and track advertising campaigns using the Shoper control panel
Average percentage of Shoper platform users using the service
Payment gateway for handling online transactions
Wide range of payment methods available, including majority of banks and card schemes
Attractive terms of use and competitive processing fee
Solution well-suited for smaller merchants enabling them to obtain better processing terms from PSPs, easily added to a shop through the Shoper control panel
Additional products such as Shoper Erp Box, SSL, graphic templates and custom designs, GDPR and TOC templates, invoicing, etc
VAS offering continuously increases
Other VAS
Number of parcels Shoper Przesyłki(thousand pcs)
20192018 2020
429 882
2,634
11
Shoper Applications - marketplace of additional applications and extensions for the core Shoper platform
Currently over 150 applications created by external suppliers
Number of available applications
2018 2019 2020
93 138 158
4,2% 4,4% 5,5% 6,7%
2018 2019 2020 Q1 2021
26,1% 28,4% 32,8% 35,0%
2018 2019 2020 Q1 2021
Average percentage of Shoper platform users using the service
Source: Company
12Source: Company
Diversified merchant base and revenue stream
Merchants’ product types on Shoper platform
No dependence on a specific industry
No single industry is yet sufficiently penetrated...
...which is reflected in the dynamic growth of all categories
Top three categories account individually for more than 10% of the total merchant base
28%
11%
Top-10 merchants generated in 2020 only 4% of revenues
11%
28%
16%
28%
4%
16%
4%other
books and multimedia
automotive
sports and travel
food
computers and electronics
children
hobby, gifts and accessories
health and beauty
clothes
home and garden
0 1000 2000 3000 4000 5000
4%
28%
16%
12%
11%
9%
6%
4%
4%
4%
2%
TOP 104%
Others96%
SaaS is the best value for money for SMEsShoper cost effective platform appeals to small and medium size merchants
13
Platform SaaS Open Source
Go-To-Market ✓ Instant and off-the-shelf ? Prep-time, coding / hosting / security know-how required
Ongoing Maintenance and Support ✓ Little ongoing maintenance – managed by the platform provider ? Need to stay on the top of updates or hire developers
Security / PCI compliance ✓ Managed by the platform provider ? Fully dependent on the merchant / developers
Customization / Features
✓ Multitude of apps / plugins allows for some customization
? Limited to what is available on the platform
? Need to use integration to connect all systems and processes
✓ Allows for full customization, adapting, evolving, aligning with B2C or B2B business model
? Requires with IT know-how or IT costs
Integration / Flexibility Largely comparable with both SaaS and Open Source allowing for APIs to connect to other systems
Total cost of ownership of a representative e-commerce store (PLN)
Note: Assumes 1mn PLN annual GMV, with payments, shipments, ERP and marketplace plugins. Opensource assumes all installations are integrations outsourced to IT professional at 100 PLN / hour
1st year Open Source SaaS
Setup cost 4,200 0
Maintenance, additional services 2,030 419
Subscription 0 444
Total 6,230 863
2nd+ Open Source SaaS
Setup cost 0 0
Maintenance, additional services 5,800 708
Subscription 0 1,620
Total 5,800 2,328
For professional mid-size stores, SaaS is ~60% cheaper than Open Source and seems to be most attractive for needs of SMEs
Section 3
Market
sklep.kanalsportowy.pl
Source: International consulting company15
Growing complexity of online commerce favours SaaSSaaS adoption grows with economic development
38.2%
SaaS penetration and GDP per capita
No
min
al G
DP
per
cap
ita
(US
D t
ho
usa
nd
)
SaaS penetration (% of market share)
5.0%
54.9%
2018
57.0%
38.0%
2017
83
6.9%
38.2%
8.0%
53.2%
38.7%
2019
10.0%
2020
48.0%
42.0%
60 6371
Custom/Enterprise Open Source SaaS
34.9
2017 2020
22.8
Solution market share by volume of merchants in Poland [thousand, %]
Number of merchants in SaaS segment in Poland [thousand]
157.0
2010 2020
13.4
Total size of the US public cloud SaaS market [USD bn]
53.1%
CAGR +27.9%
Shoper operates in the fastest growing part of e-commerceMegatrends reinforce the role of independent stores
● Independent stores have a stable, dominant position in Poland
● They additionally use marketplaces as an additional sales channel
● Quick merchant onboarding via SaaS model encourages individuals to
start selling online
● Having an independent store allows brand building and a
direct relationship with clients (impossible on marketplaces)
Source: International Consulting Company
GMV
32.0%
87.3%
Shoper
12.2%
36.1%
Growth rate2019-2020
E-commerce in Poland
Independent Merchants on the rise
Merchants need Shoper to maintain their independence 16
● Better tools to support product recommendations drive value
● More and more services based on pay-as-you-grow model
● Dynamic growth of Shoper's ARPU as purchase value increases
2026E2017 2020
3,3504,700
7,500
Average annual purchases online per active shopper in Poland [PLN]
Growing value of the basket
CAGR +11.9%
CAGR +8.1%
Number of merchants
Source: International consulting company
17
Accelerated transition to online commerce
90%
528
83%
2017
707
2018
92%
9%8%
91%
10%
2019
813
86%
14%
2020E
635
85%
2023E
15%
2021E
17% 20%
559
80%
2026E
590 594
CAGR +4.0%
CAGR +5.4%
Brick & Mortar Online
Online shopping in Poland will rapidly grow its value and share in total retail, closing the gap vs Western Europe.2020 showed an accelerated adoption of online channel by merchants.
Source: International consulting company
Retail goods market value in Poland – channel structure, 2017-2026(PLN bn)
CAGR +11.8%Online:CAGR 17-19: 11.5%CAGR 19-20: 34.9%CAGR 20-21: 11.8%CAGR 21-26: 11.9%
Brick & Mortar:CAGR 17-19: 4.5%CAGR 19-20: -3.2%CAGR 20-21: 6.0%CAGR 21-26: 3.7%
Poland is in the lower end in terms of share of
shoppers –with great potential to catch up
Western peers in next years
The number of customers in the e-commerce channel is still growing in Poland and has a lot of catching up compared to other markets
2021F 2024F2022F2017
17.7
2020
15.7
2018 2019 2023F 2025F 2026F
13.2 13.8
18.6 19.3 20.0 20.6 21.2 21.6
CAGR +5.6%
Active internet usage and digital skills have been steadily increasing in Poland but
still lag behind WE, creating the potential for further rapid growth
2019 saw a large increase in online shoppers thanks to the introduction of Allegro
Smart in late 2018 and a major increase in number of registered stores
90
88
87
85
84
83
73
72
70
65
63
62
61
60
38
38
60
82
80
56
79
81
77
32
75
67
57
50
59
45
39
16
2017
2020
(1)
(1)
(1) 2019
Shoppers in e-commerce channel in Poland (million of buyers) Users who purchase from e-shops(16-74 years old, %)
Source: International consulting company
6171
84
112
19
E-commerce is growing, but e-stores are boomingO
nli
ne
sa
les
cha
nn
els
Ow
n S
tore
sO
mn
ich
an
ne
lM
ark
etp
lace
67 76 82101
20192017 20262020
Over time, merchants decide to move from own store into
omnichannel retail
This trend is expected to strengthen in the future (2020 -
2026 CAGR - 8.9% ) thanks to seamless integration through
SaaS platforms such as Shoper
Marketplace remains one of the key sales channels…
… but its growth is limited by the lack of a direct
relationship between the buyer and merchant
Number of e-commerce merchants in PL (thousands)
So far, the number of vendors in this channel has been growing
rapidly (2017 – 2020 CAGR - 9.4%), but now there is a noticeable
trend of adding other channels to own stores
CAGR 7.0%CAGR 3.7%
20192017 2020 2026
CAGR 11.3%
CAGR 4.9%
Source: International consulting company
Strategy
kurkawodna.com.pl
Section 4
2018 2019 2020 Q1 2021
Private Label
Shoper17.0
Cloud driven platformequipping online shops with AI and ML
providing fully scalable hosting platform
protecting merchants with advanced security
New e-commerce servicespay-as-you-grow as dominant revenue stream, correlated
directly to the number of orders or the volume of turnover
(GMV) generated by shops on the platform
standard for all-new services
supporting merchants’ growth
Acquisitions & international expansiontechnological, product and client base expansion
entering selected markets in CEE
Shoper strategy
21Source: Company, international consulting company
17.3 17.220.6
Number of merchants (thousands)
25% 38% 50%
75% 62% 50%
2018 2019 2020
Other
Pay-as-you-grow
10.9 12.015.8
Total
6.4 5.34.8
20.5 27.9 46.9
Shoper customers’ growth is faster than market growth
80% Shoper GMV
2018-2020 CAGR25%
2018-2020 GMV
CAGR on Polish
market
4.2
21.3
Shoper has significant growth potential which is reflected in targets for 2026
22
From subscription to pay-as-you-grow
SaaS
Platform strength
50k merchants
>80% revenues correlated with Pay-as-you-grow
Further strengthening of omnichannel
7k merchants using Erp Box
Targets 20262020 level
20.6kmerchants
50%
23
Expanding the business through potential external opportunities
Expanding product offer
Expanding client base
M&A
Expanding client base could be
achieved by acquiring a competitor
The client base acquired through M&A
is typically more mature, with lower
churn and immediate GMV vs
organically acquired clients, which to
a great extent are star-ups
Mature client base gives potential for
higher penetration with Shoper’s
additional services
Shoper will analyse potential targets
on both local and foreign markets
Within this Group Shoper will
target local providers of
specialized products
enriching Company’s offer
and increasing its
competitiveness
Expanding technology
Instead of own R&D
expenditure
Significantly shortens time
of implementation and
limits risk of R&D
Shoper will analyse
potential targets on both
local and foreign markets
In April 2021 Shoper acquired a 60% stake in WEB-ComGroup Sp. z.o.o., which owns the e-sales managementplatform Erp Box
Erp Box is a SaaS solution enabling integration of webshop with additional services like: different sales channels, warehouse management, shipping, invoicing, etc.
It enables merchants to:
• decrease operational costs (e.g. through reduction in time of order processing
• increase sales on existing channels (e.g. faster auction management on marketplaces)
• get access to sale channels in Europe
Shoper obtained:
• Technology
• Time-to-market
• People
Environment
24
Conducting business in a responsible manner has always been important for Shoper
We support our community and encourage employee engagement
Donation for local hospital fighting COVID-19
Donation for meals for elderly people during lockdown
Taking part in Szlachetna Paczka / Noble Gift, a largest social scheme in Poland
Donation for orphanage
Every year initiative for different form of help during X-mass period
We are committed to:
Clean and correct advertising and marketing
Straight-forward contracts and terms
Enabling SMEs to digitalise
We value a diverse and creative workplace
Diverse work by gender (43% female and 57% male) and age
Each new employed person gets a month long on-boarding
Yearly workplace satisfaction survey – many changes driven by this survey
Many pro-employee activities – relax room, fruit day, sport activities, foreign
language courses for everybody
We are committed to lowering our footprint
Less emission - we encourage employees to commute by bike – we have prizes
for best bikers
Less Carbon – we lease office where central heating is powered by gas
Less waste – we do not use paper agreements – only electronic versions,
instead of plastic bottles we use water in bulk, employees collect used plastic
cups and batteries
Merchants
Society
Equal opportunity workplace
Shoper’s commitment to ESG activities
Financial data & KPI
dluta.pl
Section 5
ARPU
2018 2019
1 635
2020
2 1792 873
(PLN)
• Growing penetration of our target client base
• Addition of new services to the offer raises ARPU
• Pay-as-you-grow model benefits from GMV growth
• Highly cash generative model
Monthly Recurring Revenue (subscription only) [PLN thousand]
539
EBITDA to OCF conversion(PLN m)
Source: Company* The above 100% level is mainly due to increase of liabilities related to unpaid dividend (paid out in April)
CAGR +32.6%
Shoper - consistent growth of crucial KPI
The larger the scale of the business the larger the margins, due to the relatively low level of variable costs
Adjusted Management EBITDA margin %
High operating leverage
31.9%38.3%
46.4%
2018 2019 2020
26
LTM Q1 2021
3 053
96% 96% 97%118%
2018 2019 2020 LTM Q12021*
46.6%
LTM Q1 2021
1 5482.9x
jan
.18
feb
.18
ma
r-18
apr.
18
ma
y.18
jun
.18
jul.
18
aug
.18
sep
.18
oct
.18
no
v.18
dec
.18
jan
.19
feb
.19
ma
r-19
apr.
19
ma
y.19
jun
.19
jul.
19
aug
.19
sep
.19
oct
.19
no
v.19
dec
.19
jan
.20
feb
.20
ma
r-20
apr.
20
ma
y.20
jun
.20
jul.
20
aug
.20
sep
.20
oct
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no
v.20
dec
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jan
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feb
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ma
r.21
27
11 12 14 194 5
64
7
7
0
10
20
30
40
2017 2018 2019 2020
2020
2019
2018
Pre-2018
1,2
2,1
4,04,5
0,0
1,0
2,0
3,0
4,0
5,0
2018 2019 2020 LTM Q1 2021
10 625 11 32514 765 15 855
278 642
1 029 1 16810 903 11 967
15 79417 023
0
5 000
10 000
15 000
20 000
2018 2019 2020 Q1 2021
Standard Subscriptions Premium Subscriptions
10 903 11 96715 794 17 023
6 364 5 2684 788 4 248
17 267 17 23520 582 21 271
0
5 000
10 000
15 000
20 000
25 000
2018 2019 2020 Q1 2021
Shoper Private label partners
Strong growth of number of Standard and Premium merchants
Number of clients is increasing significantly –growth over 20k in 2020
Rapidly increasing number of Premium clients with more value potential
Steadily growing number of standard customers
Decreasing number of clients obtained through partners – the role of partners is decreasing due to the greater specialization of e-commerce platforms in the field of customer service, and comprehensive offer
CAGR9.2 %
CAGR79.6%
CAGR52.5 %
Number of clients (with private label partners) Number of clients (with standard and premium subscriptions)
CAGR20.4 %
Shoper: GMV (PLN bn) Shoper: Revenues by merchant cohorts*
* Revenues by merchant cohorts only reflects the revenues from direct clients and does not include revenues from partners from Shopper Pay, Shoper Przesyłkiand private label
Quarterly data
20,527,9
46,9 53,5
9,2 15,8
2018 2019 2020 LTM Q12021
Q1 2020 Q1 2021
Quarterly data
2 992 3 917
12 492
2 3634 548
15% 14%
27% 26%29%
10%
15%
20%
25%
30%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2018 2019 2020 Q1 2020 Q1 2021
Quarterly data
6 448 7 988
19 833 22 199
4 038 6 40488 2 692
1 9552 760
6981 503
2018 2019 2020 LTMQ1 2021
Q1 2020 Q1 2021
EBITDA Management adjustment (one-offs)
High revenue and EBITDA growth rates
During 2018-2020 revenues grew at 51% CAGR, exceeding the market growth rate
The high revenue growth was supported by improving EBITDA and net profit margins which have grown from 32% to 46% and from 15% to 27%, respectively
Management adjustments to EBITDA relate mainly to non-recurring owners’ costs in the past and one-off advisory costs related to the search for financial investor in 2019
CAGR2018-20: 104%
Revenue (PLN m)
Adjusted management EBITDA and margin (PLN thousand)
Net profit and margin(PLN thousand)
32%
38%
46%
CAGR 2018-20: 51%
CAGR2018-20: 83%
47%51% 50%
Comprehensive offer within one platform1
Operating in highly attractive SaaS model2
Highly diversified and dispersed client base3
Scalability and robust business growth4
High margins with great cash conversion rate5
Leader on the Polish market6
Experienced management team7
Key advantages
29
Thank youYour springboard to bigger e-commerce
