Investor Presentation

Transcription

1 Investor Presentation Deutsches Eigenkapitalforum, Frankfurt Dr. Cornelius Patt, CEO Andreas Grandinger, CFO November 11-13th, 2013

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. Deutsches Eigenkapitalforum page 2

3 zooplus is the leading European e-commerce company for pet food and pet supplies to 20 m Early start and break-even early on to 129 m zooplus goes international to 415 m Intensifying competition and major changes in logistics to 1,000 m Close the gap in size in setup in relevance» 1 st company to start e-commerce for pet supplies» 1 st company to go international with e-commerce for pet supplies» Among 1 st companies to close the gap in size to the leading offline competitors zooplus: prepared to stay ahead of the competition Deutsches Eigenkapitalforum page 3

4 Market structure and trends zooplus operates in a large niche market with further growth potential Market volume by country Sales channels Online 4% Poland 0,6 Source: Euromonitor 2012, zooplus estimation Spain 1,3 Benelux 1,7 Rest of Europe 4,0 Italy 2,5 France 3.4 UK 4,6 Germany 3.9 bn Source: Euromonitor 2012, zooplus estimation Specialty retail 33% Grocery and other 63%» 22 bn total market» Specialty retail 1/3 of total market» Steadily growing market with 2-3 % p.a.» Main categories cats & dogs food» Fragmented market» No pan-european player in stationary business» zooplus only pan-european e-commerce retailer Deutsches Eigenkapitalforum page 4

5 The company has consistently put the user experience first» Driven by e-commerce aptitude (markets, customers, infrastructure)» A niche market (only 1/3 of households own pets)» Product typically very bulky (size and weight)» Retention is the key business driver» Market difficult to enter Operational excellence Relevance Price / Performance Functionality Reliable Marketing / Advertising The great user experience Customer loyalty and high retention Deutsches Eigenkapitalforum page 5

6 Having operated as a German outfit for the first five years we now take a pan-european approach» Similar patterns in customer behavior» Integrated international platform Significant overlap in assortment, internationally sourced Outsourced pan- European logistics structure (D, NL, PL) Second label bitiba in DE, FR, UK and ES HU zooplus headquarter Local sales office Fulfilment center Deutsches Eigenkapitalforum page 6

7 Since 2009 the competitive landscape is populating offliners, smaller pure-plays and amazon joining the category DE, FR, UK, IT Deutsches Eigenkapitalforum page 7

8 As a deliberate act to defend our leading position we adjusted our pricing impacting our gross margins 18 months : H2/2010 H1/2012 Repositioning in price, unchanged product mix -5%p 18 months : H1/2012 H2/2013 Remaining change in margin driven by change in product mix less accessories 74% Margin 41% 42% 39% -1%p / -2%p 70% 67% 38% 37% dog/cat food sales (of total sales) 64% 64% 63% 65% 36% 35% 34% 61% H1/2010 (a) H2/2010 (a) H1/2011(a) H2/2011(a) H1/2012 H2/2012 H1/2013 H2/2013e (a) : one-off effects of logistics migration adjusted impacting other income and logistics / administration costs Deutsches Eigenkapitalforum page 8

9 At the same time we achieved substantial efficiency gains giving us a critical edge over the competition Result: a continuous ramp-up of sales, driven by domestic and international markets 44,1% Total cost (without COGS) on total sales (e): 415 m Total sales 2010 (a): 187 m ,1% H1/2010 (a) H2/2010 (a) H1/2011 (a) H2/2011(a) H1/2012 H2/2012 H1/2013 H2/2013 (e) Other countries D.A.CH (a) : one-off effects of logistics migration adjusted impacting other income and logistics / administration costs Deutsches Eigenkapitalforum page 9

10 Costs have been reduced in all categories by optimized processes and scaling effects Operational excellence» Fulfilment centers 2011 Hörselgau (D) 44,1% 7,2% 42,5% 41,7% 9,4% 6,8% 39,3% 4,9% 37,3% 36,5% 4,6% 4,5% 34,9% 3,0% 32,1% 2013 Wroclaw (PL) 2,1%» Reduced distribution costs 1» Optimized sourcing 23,5% 21,5% 22,2% 23,5% 22,9% 22,8% 22,3% 21,3% Marketing efficiency» Product driven marketing 8,1% 6,9% 7,4% 6,6% 5,2% 4,9% 5,0% 4,4%» Google optimization 5,3% 4,7% 5,3% 4,3% 4,6% 4,3% 4,6% 4,3%» Internationalization H1/2010 (a) H2/2010 (a) H1/2011(a) H2/2011(a) H1/2012 H2/2012 H1/2013 H2/2013 (e) Advertising/ Marketing 1 Note: share of international / long-distance sales has risen significantly Logistics IT/Admin (incl. depreciation & interest) Personnel Deutsches Eigenkapitalforum page 10

11 Customer loyalty the winning factor of the business model has improved significantly Kohort Analysis Sales incl. VAT a a a % 2012 a Total sales per annual customer group ( m) 143 <= a 94 68% 2010 a % 2011 a+1 63% 72 90% 2010 a+2 <=2009 <=2009 <= a % % 94% 99% a+3 <= (e) Deutsches Eigenkapitalforum page 11

12 Drivers for the profitability: (a) share of repeat business and (b) development stage of the supply chain new customers (sales in the year of acquisition) repeat customers (consecutive years sales) direct / optimized supply chain + + indirect / intermediate stage supply chain + Deutsches Eigenkapitalforum page 12

13 While the repeat business has gained a larger share we are still mid-way in setting up a pan-european supply chain new customers repeat customers new customers repeat customers direct supply chain (1) 25% 53 43% 88 direct supply chain (1) 15% 69 40% 168 indirect supply chain 20% 42 12% 25 indirect supply chain 17% 83 28% 131 Sales ( m) incl. VAT (1) D, A, CH, NL, BE» Sales to repeat customers (sales in the years after the year of acquisition) have risen from 55% to 68%» The share of sales using indirect supply chains is now 45%, up from 32%» As zooplus grows towards the 1 bn most key markets will be served using direct supply chains / optimized supply chains Deutsches Eigenkapitalforum page 13

14 Two to four new fulfilment centers will close the remaining gaps, enhancing the user experience and driving efficiency» Complete the fulfilment center setup : from 3 to 5-7 fulfilment centers» Deeper exploration of existing countries» Evaluation of new countries» International rollout bitiba HU zooplus headquarter Local sales office Fulfilment center Potential locations (FC) under investigation Deutsches Eigenkapitalforum page 14

15 Current guidance and mid-term outlook Current guidance for next year Total Sales EBT ROS 2014 : 500 mm + > 5 mm > 1,0% Outlook from today s perspective mid-term Total Sales EBT ROS 2015 : 600 mm > 10 mm ~ 2,0% 2016 : 700 mm ~ 25 mm ~ 3,5% EBT: Earnings before taxes ROS: Return on sales = EBT on Total Sales Deutsches Eigenkapitalforum page 15

16 P&L structure 9M / 2013 P&L in mm EUR 9M M 2012 D abs D % Total Sales 306,7 237,8 abs. 68,9 52,7 D in % 29% 28% COGS Logistics Payment Customer Acquisition Personnel G&A EBITDA EBT 201,4 65,7% 67,3 22,0% 4,4 1,4% 8,3 2,7% 13,8 4,5% 9,5 3,1% 2,0 0,7% 1,2 0,4% 151,4 63,7% 54,7 23,0% 3,3 1,4% 11,7 4,9% 10,8 4,5% 8,0 3,4% -2,1-0,9% -2,7-1,1% 50,0 12,6 1,1-3,4 3,0 1,4 4,1 3,9 2,0% -1,1% 0,0% -2,2% 0,0% -0,3% 1,6% 1,5% EPS in EUR 0,05-0,33 0,4 -» Total sales increase by 29% vs. PY» COGS increased due to better prices for customers and change in product mix» Significant cost reductions in logistics, customer acquisition and G&A as % of total sales» Positive EBT and strong improvement compared to PY Cash Flow CF from Operations -2,9-3,7 0,8 - Deutsches Eigenkapitalforum page 16

17 P&L structure Q3 / 2013 P&L in mm EUR Q Q D abs D % Total Sales 107,8 85,4 abs. 22,4 19,0 D in % 26% 33% COGS Logistics Payment Customer Acquisition Personnel G&A EBITDA EBT 71,5 66,3% 23,0 21,3% 1,6 1,4% 2,3 2,1% 4,6 4,3% 2,9 2,7% 2,0 1,8% 1,7 1,6% 55,2 64,6% 19,8 23,2% 1,2 1,4% 4,6 5,4% 3,7 4,3% 2,6 3,1% -1,6-1,9% -1,8-2,1% 16,3 3,2 0,4-2,3 0,9 0,3 3,6 3,5 1,7% -1,9% 0,1% -3,3% 0,0% -0,4% 3,7% 3,7% EPS in EUR 0,15-0,22 0,4 -» Total sales increase by 26% vs. PY» COGS increased due to better prices for customers and change in product mix» Significant cost reductions in logistics, customer acquisition and G&A as % of total sales» Positive EBT ratio of 1,6% Deutsches Eigenkapitalforum page 17

18 Balance Sheet Sept. 30th, 2013 Assets in mm EUR Sep. 30th, 2013 Dec. 31th, 2012 D abs A. Non-Current Assets I. PP&E 0,6 0,7-0,1 II. Intangible Assets 4,1 2,1 2,0 III. Financial Assets 0,0 0,1-0,1 IV. Deferred Tax Assets 7,6 8,2-0,6 Total Non-Current Assets 12,3 11,1 B. Current Assets I. Inventories 40,2 32,9 7,3 II. Trade Receivables 11,2 9,3 1,9 III. Other Current Assets 5,6 9,1-3,5 IV. Cash and Cash Equivalents 7,6 3,0 4,6 Total Current Assets 64,6 54,3 76,9 65,4 11,5 Equity and Liabilities in mm EUR Sep. 30th, 2013 Dec. 31th, 2012 D abs A. Equity I. Capital Subscribed 6,1 6,1 0,0 II. Capital Reserves 50,0 49,4 0,6 III. Other Reserves 0,0-0,1 0,1 IV. Profit and Loss carried forward -21,2-21,5 0,3 Total Equity 34,9 33,9 B. Current Liabilities I. Trade payables 12,0 16,8-4,8 II. Financial Liabilities 13,0 2,0 11,0 III. Derivative Financial Instruments 0,1 0,3-0,2 IV. Other Current Liabilities 12,8 9,1 3,7 V. Tax Liabilites 0,3 0,1 0,2 VI. Provisions 2,8 2,2 0,6 VII. Deferred Income 1,0 0,9 0,1 Total Current Liabilities 42,0 31,5 76,9 65,4 11,5 Equity (Ratio in %) 45,4% 51,9%» Attractive balance sheet structure - equity ratio > 40%» Investments in growth already covered in result» No impairment risks» Highly efficient capital utilization» No further equity raisings envisaged» Attractive and long-term financing lines in place Deutsches Eigenkapitalforum page 18

19 Shareholder structure and market capitalization Shareholder structure Share price development 1 Burda Digital Ventures GmbH 5.39 % 5.90 % % % % 2 Others 3 BDV Beteiligungen GmbH & Co. KG 4 Burda GmbH 7.99 % 5 5 Capital Research +82% 8.60 % % % 6 The Nomad Investment Partnership LP 7 Ruane, Cunniff & Goldfarb Inc. 8 Wasatch Advisors 9 Burda (others) Free float (according to Deutsche Börse definition): 49,96% Jan. 1st, 2013: Nov. 8th, 2013: Market capitalization ~ 350 m Deutsches Eigenkapitalforum page 19