2012 Nine Months Results 7 November 2012

Transcription

1 2012 Nine Months Results 7 November 2012

2 DISCLAIMER This presentation has been prepared by YOOX S.p.A. for information purposes only and for use in presentations of the Group s results and strategies. For further details on the YOOX Group, reference should be made to publicly available information. Statements contained in this presentation, particularly regarding any possible or assumed future performance of the Group, are or may be forward-looking statements based on YOOX S.p.A. s current expectations and projections about future events, and in this respect may involve some risks and uncertainties. Actual future results for any quarter or annual period may therefore differ materially from those expressed in or implied by these statements due to a number of different factors, many of which are beyond the ability of YOOX S.p.A. to control or estimate precisely, including, but not limited to, the Group s ability to manage the effects of the uncertain current global economic conditions on our business and to predict future economic conditions, the Group s ability to achieve and manage growth, the degree to which YOOX S.p.A. enters into, maintains and develops commercial and partnership agreements, the Group s ability to successfully identify, develop and retain key employees, manage and maintain key customer relationships and maintain key supply sources, unfavourable development affecting consumer spending, the rate of growth of the Internet and online commerce, competition, fluctuations in exchange rates, any failure of information technology, inventory and other asset risk, credit risk on our accounts, regulatory developments and changes in tax laws. YOOX S.p.A. does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. Any reference to past performance of the YOOX Group shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe to any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending the presentation you agree to be bound by the foregoing terms. SLIDE 2

3 TABLE OF CONTENTS RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS 9 MONTHS 2012 FINANCIAL ANALYSIS Q&A SLIDE 3

4 NINE MONTHS ENDED 30 SEPTEMBER RESULTS HIGHLIGHTS Group s Net Revenues at 266.1m (vs m in 9M 2011) Strong growth from all key foreign markets; international markets now account for 84.1% 1 (vs. 79.2% 1 in 9M 2011) North America: further strengthening of organisational structure, new Country Director appointed Italy back in the black in the third quarter Excellent performance from the Asia-Pacific region, with China the fastest growing market Sustained growth from both business lines Gross margin rebound and strong operating leverage on fulfillment costs drove solid margin growth in 3Q 2012 and allowed profitability to recoup in 9M 2012 compared to 1H 2012 EBITDA Excluding Incentive Plan Costs at 18.8m (vs. 15.0m in 9M 2011) Net Income broadly in line with last year at 3.4m (vs. 3.6m in 9M 2011) Efficient Working Capital management provided support to the Group s Cash Flow generation from Operations Net Working Capital to Net Revenue ratio at 11.0% (vs. 15.0% in 9M 2011) Positive Net Financial Position at 6.0m 1.Excludes Not Country Related revenues SLIDE 4

5 LATEST BUSINESS DEVELOPMENTS Multi-brand The NEW yoox.com - localised version successfully launched in China in October 2012 thecorner.com - brilliant performance in 3Q 2012, with accelerating growth compared to 1H 2012 shoescribe.com - great start and in line with plans Mono-brand sergiorossi.com, the first online store developed as part of the newly-created JV with PPR, launched worldwide in September 2012 moncler.com extended to China in September 2012 Tru Trussardi and Trussardi Jeans lines added to trussardi.com in October 2012 Technological Innovations The NEW yoox.com successfully launched: new architecture and design, fully-optimised for mobile and tablets, improved speed and usability, and advanced features like instant text search and MySizes allow customers to find what they are looking for more quickly and create a personalised size profile to browse the catalogue, already filtered for the customers sizes. Conversion and bounce rates significantly improved compared to the previous release Operations Capacity expansion at our highly automated global operations and distribution platform ongoing and on track SLIDE 5

6 OUR GLOBAL STRATEGIC PARTNERSHIPS IN THE MONO-BRAND BUSINESS LINE Online stores Powered by YOOX Group missoni.com OPENING IN 2013 dodo.com OPENING IN 2013 alexanderwang.com pomellato.com pringlescotland.com barbarabui.com trussardi.com armani.com moncler.com dolcegabbana.com bikkembergs.com brunellocucinelli.com y-3store.com zegna.com maisonmartinmargiela.com zeishouse.com albertaferretti.com napapijri.com giuseppezanottidesign.com coccinelle.com robertocavalli.com jilsander.com dsquared2.com bally.com moschino.com emiliopucci.com costumenational.com valentino.com stoneisland.com cpcompany.com diesel.com emporioarmani.com marni.com JVCo with PPR balenciaga.com OPENING IN 2013 alexandermcqueen.com OPENING IN 2013 bottegaveneta.com OPENING SOON ysl.com OPENING IN 2013 sergiorossi.com SLIDE 6

7 TABLE OF CONTENTS RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS 9 MONTHS 2012 FINANCIAL ANALYSIS Q&A SLIDE 7

8 9M M 2012 GAP 3Q2011 3Q2012 9M2011 9M2012 GAP 3Q2011 3Q2012 9M2011 9M2012 GAP 3Q2011 3Q2012 KEY PERFORMANCE INDICATORS Monthly Unique Visitors (m) 1 # Orders ( 000) - Group 9M M Q Q M M Q Q ,481 1, Multi-brand Mono-brand Average Order Value ( ) - Group Active Customers 2 ( 000) - Group 3 9M M Q Q M M Note: Key performance indicators refer to yoox.com, thecorner.com, shoescribe.com and the mono-brand online stores Powered by YOOX Group 1.Source: SiteCatalyst for yoox.com; Google Analytics for thecorner.com, shoescribe.com and the mono-brand online stores Powered by YOOX Group 2.Active Customer is defined as a customer who placed at least one order in the 12 preceding months 3.Include Active Customers of the mono-brand online stores Powered by YOOX Group SLIDE 8

9 3Q11 3Q12 NET REVENUES BREAKDOWN BY BUSINESS LINE AND GEOGRAPHY Net Revenues by Business Line 9M M Q Q 2012 Y-o-Y Growth 53.6% 30.2% 266.1m 27.4% 204.4m 22.2% 73.2m 48.1% 93.2m 20.3% 9M M 2012 Multi-brand 25.4% 30.0% 25.4% 29.5% Mono-brand 74.6% 70.0% 74.6% 70.5% Net Revenues by Geography Italy 9M M Q Q 2012 Rest of Europe North America Japan 6.7% 3.6% 20.4% 19.7% 8.7% 6.5% 15.5% 21.2% 7.3% 3.7% 18.8% 20.4% 8.9% 7.1% 14.7% 20.4% RoW + NCR % 48.1% 49.8% 48.9% Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro In this presentation, third quarter figures are calculated as the difference between the first nine months results and the first-half results of the same year 1.Not Country Related SLIDE 9

10 YOOX GROUP PROFIT & LOSS ( m) 9M M Q Q 2012 Net Revenues growth 35.6% 30.2% 35.0% 27.4% COGS (130.5) (173.8) (48.3) (60.9) Gross Profit % of Net Revenues 36.2% 34.7% 34.0% 34.7% Fulfillment (22.3) (24.9) (8.0) (8.6) % of Net Revenues 10.9% 9.4% 10.9% 9.3% Sales & Marketing (22.1) (29.9) (7.5) (10.1) % of Net Revenues 10.8% 11.2% 10.2% 10.9% EBITDA Pre Corporate Costs % of Net Revenues 14.4% 14.1% 12.9% 14.6% General & Administrative (16.9) (20.4) (4.9) (7.2) % of Net Revenues 8.3% 7.7% 6.7% 7.7% Other Income/ (Expenses) (0.8) (1.2) (0.6) (0.3) EBITDA % of Net Revenues 5.8% 6.0% 5.4% 6.5% EBITDA Excluding Incentive Plan Costs % of Net Revenues 7.3% 7.0% 6.7% 7.7% Depreciation & Amortisation (4.9) (8.8) (2.1) (3.2) % of Net Revenues 2.4% 3.3% 2.9% 3.5% Operating Profit % of Net Revenues 3.4% 2.6% 2.5% 3.1% Net Financial Income / (Expenses) (0.4) (1.0) (0.2) (0.5) Profit Before Tax % of Net Revenues 3.2% 2.3% 2.2% 2.5% Taxes (2.9) (2.6) (0.9) (1.1) Net Income % of Net Revenues 1.8% 1.3% 1.0% 1.3% Net Income Excluding Incentive Plan Costs % of Net Revenues 3.0% 2.1% 2.0% 2.2% Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation EBITDA Excluding Incentive Plan Costs calculated by adding back to EBITDA the costs associated with incentive plans in each period Net Income Excluding Incentive Plan Costs calculated by adding back to Net Income the costs associated with incentive plans in each period, net of their related fiscal effect SLIDE 10

11 EBITDA ANALYSIS BY BUSINESS LINE EBITDA Evolution 9M M Q Q m 11.8m 3.9m 6.1m % of Net Revenues 5.8% 6.0% 5.4% 6.5% Multi-brand EBITDA Pre Corporate Costs Mono-brand EBITDA Pre Corporate Costs Corporate Costs 9M M Q Q M M Q Q M M Q Q m 22.9m # online stores open (21.6)m 14.6m (17.7)m 6.3m 8.5m 9.0m 3.1m 5.1m (5.5)m (7.5)m % of Multibrand 13.4% 12.3% 11.6% Net Revenues 13.0% 9M2011 9M2012 GAP 3Q2011 3Q2012 % of Monobrand 17.3% 18.2% 16.6% Net Revenues 18.4% 9M2011 9M2012 GAP 3Q2011 3Q2012 % of Group Net 8.6% 8.1% 7.5% Revenues 8.0% 9M2011 9M2012 GAP 3Q2011 3Q2012 Note: Multi-brand and Mono-brand EBITDA Pre Corporate Costs include all costs directly associated with the business line, including COGS, Fulfillment, Sales & Marketing (all net of D&A); Corporate Costs include General & Administrative costs (net of D&A) and Other Income/ Expenses SLIDE 11

12 FROM EBITDA TO NET INCOME 9M m (2.9)m 15.9m Higher D&A related to the new automated global operations and distribution platform and the investments in technology developments As a result of stock option grantings in September 2012, Incentive Plan Costs expected at ~ 2.3m in 4Q 2012 (8.8)m 7.0m (1.0)m (2.6)m 3.4m EBITDA Excl. Incentive Plan Costs Incentive Plan Costs EBITDA D&A EBIT Net Financial Income / (Expenses) Taxes Net Income % of Net Revenues 7.0% 6.0% 2.6% 1.3% 9M m 11.8m (3.1)m (4.9)m 7.0m (0.4)m (2.9)m 3.6m EBITDA Excl. Incentive Plan Costs Incentive Plan Costs EBITDA D&A EBIT Net Financial Income / (Expenses) Taxes Net Income % of Net Revenues 7.3% 5.8% 3.4% 1.8% SLIDE 12

13 YOOX GROUP SUMMARY BALANCE SHEET 9M 2011 FY M 2012 ( m) Net Working Capital Non Current Assets Non Current Liabilities (excl. financial liabilities) (0.5) (0.3) (0.4) Total Net Financial Debt / (Net Cash) (0.6) (12.9) (6.0) Shareholders' Equity Total SLIDE 13

14 NET WORKING CAPITAL EVOLUTION Net Working Capital ( m) 9M 2011 FY M 2012 Inventories Trade Receivables Trade Payables (56.9) (62.8) (82.0) Strong decrease in Net Working Capital To Net Revenue ratio Other Receivables / (Payables) (4.3) (14.3) (12.7) Net Working Capital as % of Net Revenues 15.0% 11.3% 11.0% 1 1 Inventory Level Evolution 45.6% 47.9% 49.8% 34.0% 35.0% 34.8% Stock related to shoescribe.com fully included in inventories at 30 September 2012 and partially included in inventories at 31 December M 2011 FY M 2012 Inventories as % of Multi-brand Net Revenues Inventories as % of Group Net revenues 1.Percentages calculated on LTM Net Revenues SLIDE 14

15 YOOX GROUP CASH FLOW STATEMENT Cash Flow Statement ( m) 3Q Q M M 2012 Cash and Cash Equivalents at Beginning of Period Cash Flow from Operations (4.2) 8.6 Cash Flow from Investment Activities (4.2) (4.1) (16.3) (13.9) Sub Total (1.8) 1.0 (20.5) (5.3) 1 1 Strong Cash Flow from Operations (Operations generated a delta cash flow of 12.8m in the 12 months to 30 September 2012) Cash Flow from Financing Activities 2.2 (0.9) Cash Flow (11.6) (1.0) Cash and Cash Equivalents at End of Period Capital Expenditure 3Q Q M M m 21.0m 5.1m 8.1m % of Net Revenues 7.0% 8.7% 9.0% 7.9% 1.As per IFRS, line of credit of 4.0m in 3Q 2012 and 6.7m in 9M 2012 accounted for in Cash Flow from Investment Activities, being fully allocated to finance the new automated logistics platform SLIDE 15

16 YOOX GROUP NET FINANCIAL POSITION EVOLUTION Net Financial Position ( m) 9M 2011 FY M 2012 Cash and Cash Equivalents (12.5) (22.7) (21.7) Other Current Financial Assets - (5.5) (6.6) Current Financial Assets (12.5) (28.2) (28.3) Current Financial Liabilities Long Term Financial Liabilities Strong improvement in the Net Financial Position Net Financial Debt / (Net Cash) (0.6) (12.9) (6.0) Net Financial Position Evolution (12.9)m 3.4m 8.8m (6.0)m 2.9m 4.5m (20.6)m FY2011 Net Cash Net Income D&A Incentive Plan Costs Proceeds from Stock Option Exercise (6.0)m Change in Working Capital Investments 2 9M2012 Net Cash 1.Medium/long-term line of credit mainly used to finance the new highly-automated global operations and distribution platform 2.Please note that line of credit of 6.7m has been restated from Cash Flow from Investment Activities to Cash Flow from Financing Activities SLIDE 16

17 TABLE OF CONTENTS RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS 9 MONTHS 2012 FINANCIAL ANALYSIS Q&A SLIDE 17

18 APPENDIX YOOX GROUP PROFIT & LOSS EXCLUDING INCENTIVE PLAN COSTS FOCUS ON INCENTIVE PLAN COSTS SHAREHOLDER STRUCTURE SLIDE 18

19 YOOX GROUP PROFIT & LOSS EXCLUDING INCENTIVE PLAN COSTS ( m) 9M M Q Q 2012 Net Revenues growth 35.6% 30.2% 35.0% 27.4% COGS (130.5) (173.8) (48.3) (60.9) Gross Profit % of Net Revenues 36.2% 34.7% 34.0% 34.7% Fulfillment Excl. Incentive Plan Costs (22.2) (24.6) (7.9) (8.5) % of Net Revenues 10.8% 9.2% 10.8% 9.1% Sales & Marketing Excl. Incentive Plan Costs (21.1) (29.1) (7.1) (9.9) % of Net Revenues 10.3% 11.0% 9.7% 10.7% EBITDA Pre Corporate Costs % of Net Revenues 15.0% 14.5% 13.5% 14.9% General & Administrative Excl. Incentive Plan Costs (15.0) (18.7) (4.4) (6.4) % of Net Revenues 7.3% 7.0% 6.0% 6.9% Other Income/(Expenses) (0.8) (1.2) (0.6) (0.3) % of Net Revenues 0.4% 0.4% 0.8% 0.4% EBITDA Excluding Incentive Plan Costs % of Net Revenues 7.3% 7.0% 6.7% 7.7% Net Income Excluding Incentive Plan Costs % of Net Revenues 3.0% 2.1% 2.0% 2.2% SLIDE 19

20 FOCUS ON INCENTIVE PLAN COSTS ( m) 9M 2011 % of Total 9M 2012 % of Total 3Q 2011 % of Total 3Q 2012 % of Total Fulfillment (22.337) (24.925) (7.961) (8.635) of which Incentive Plan Costs (0.179) 5.7% (0.337) 11.7% (0.087) 9.1% (0.106) 10.1% Sales & Marketing (22.128) (29.907) (7.468) (10.128) of which Incentive Plan Costs (1.046) 33.2% (0.764) 26.5% (0.375) 39.2% (0.191) 18.1% General & Administrative (16.903) (20.443) (4.887) (7.156) of which Incentive Plan Costs (1.925) 61.1% (1.785) 61.8% (0.494) 51.7% (0.756) 71.8% Incentive Plan Costs (3.150) 100.0% (2.887) 100.0% (0.956) 100.0% (1.054) 100.0% EBITDA Reported % of Net Revenues 5.8% 6.0% 5.4% 6.5% Incentive Plan Costs (3.150) (2.887) (0.956) (1.054) EBITDA Excl. Incentive Plan Costs % of Net Revenues 7.3% 7.0% 6.7% 7.7% SLIDE 20

21 SHAREHOLDER STRUCTURE Shareholder Fully Diluted 1 Current Federico Marchetti 8,235, % 3,993, % Management team and other stock option holders 5,051, % Sub-total 13,287, % 3,993, % Balderton Capital 4,370, % 4,370, % OppenheimerFunds 2,899, % 2,899, % Federated 2,856, % 2,856, % Red Circle Unipersonale 2,838, % 2,838, % Caledonia Investments 2,718, % 2,718, % Red Circle Investments 2,473, % 2,473, % Aviva Investors Global Services 1,612, % 1,612, % Capital Research and Management Company 1,387, % 1,387, % Wasatch Advisors 1,274, % 1,274, % 3 2 Market 30,629, % 30,629, % Total 66,348, % 57,054, % Updated as of 7 November The fully diluted column shows the effect on the Company s shareholder structure calculated assuming that all the stock options granted under the Company s stock option plans are exercised. It does not include 112,764 ordinary shares under the Incentive Plan 2.Excludes Federico Marchetti 3.Includes 130,662 proprietary shares SLIDE 21

22 CONTACTS Investor Relations BOLOGNA - MILANO - NEW YORK - MADRID - PARIS - TOKYO - SHANGHAI - HONG KONG SLIDE 22