#1 FASHION AND LIFESTYLE DESTINATION IN GROWTH MARKETS€¦ · FASHION AND LIFESTYLE SPENDING IN GFG FOOTPRINT1 5 LONG-TERM GROWTH POTENTIAL FASHION AND LIFESTYLE ONLINE PENETRATION

#1FASHION ANDLIFESTYLEDESTINATION INGROWTH MARKETS

September 2020

OUR VISION IS TO BE THE #1 FASHION AND LIFESTYLE DESTINATION IN OUR MARKETS

OUR PURPOSE IS TO ENABLE TRUE SELF-EXPRESSION2 COMPANY PRESENTATION: SEPTEMBER 2020

OUR OPPORTUNITY

3 COMPANY PRESENTATION: SEPTEMBER 2020

ONE BILLION PEOPLE LIVE IN OUR REGIONS AND ARE MOVING ONLINE

4

Source: GFG calculations based on data from WCIS; Euromonitor International Ltd: Apparel and Footwear 2020 edition, Beauty and Personal Care 2019 edition, Personal Accessories and Eyewear 2020 edition. Fashion and lifestylemarket size refers to the aggregation of Apparel and Footwear, Beauty and Personal Care, and Personal Accessories and Eyewear. Retail value RSP incl. Sales Tax, Fixed 2019 ex rates, Current Prices. Smartphone penetration calculatedas smartphone devices divided by population.

€30bn€100bn€100bn €80bn

LATAM CIS SEA ANZ

Countries 4 4 7 2

People 330m 210m 450m 30m

Smartphone Penetration 85%+ 120%+ 95%+ 100%+

FASHION & LIFESTYLE MARKET

COMPANY PRESENTATION: SEPTEMBER 2020

OUR MARKET IS LARGE WITH LONG-TERM RUNWAY FOR GROWTH

A LARGE MARKET OUTGROWING OTHERS FASHION AND LIFESTYLE SPENDING IN GFG FOOTPRINT1

5

LONG-TERM GROWTH POTENTIALFASHION AND LIFESTYLE ONLINE PENETRATION – GFG VS OTHER MAJOR MARKETS (2019)

Source: GFG calculations based on data from Euromonitor International Ltd: Apparel and Footwear 2020 edition, Beauty and Personal Care 2019 edition, Personal Accessories and Eyewear 2020 edition. Fashion and lifestyle market size refers to the aggregation of Apparel and Footwear, Beauty and Personal Care, and Personal Accessories and Eyewear. Retail value RSP incl. Sales Tax, Fixed 2019 ex rates, Current Prices. (1) GFG footprint refers to the fashion and lifestyle market in the 17 countries where it operates. (2) Based on fashion and lifestyle market CAGR from 2019-2023 in GFG footprint compared to Western Europe and United States.

7%

19%

22%23%

27%

0 %

5 %

10 %

15 %

2 0%

2 5%

3 0%

GFG Germany UK US China

4x

2023

€400bn+

2019

~€320bn

faster growthvs developed

markets2

>2x

United States ~€540bn China ~€550bn


Survey conducted Pre-COVID

HOW WE WIN


HOW WE BUILD THE LEADING ONLINE FASHION AND LIFESTYLE DESTINATION IN OUR MARKETS

7

2. STRATEGIC PARTNER TOLEADING BRANDS

• Gateway to growth markets

• Flexible and tailored business model

• Fashion-specific fulfilment and media solutions

1. INSPIRING AND SEAMLESS CUSTOMER EXPERIENCE

• Inspirational and localised discovery

• Most relevant assortment of global and local brands

• Seamless and tailored shopping experience

3. SCALABLE OPERATIONS AND PROPRIETARY TECHNOLOGY

• Fashion-centric operational infrastructure

• Rich data and tools to drive personalisation capabilities

• Best-in-class app for a mobile-first audience


APPAREL (39%) FOOTWEAR (25%)

SPOR

T (17

%)

ACCE

SSOR

IES

(11%

)

KIDS, BEAUTY & OTHER (8%)

ROLLOUT OF NEW CATEGORIES ACROSS REGIONS

WE OFFER A BROAD, RELEVANT & UNPARALLELED ASSORTMENT ACROSS FASHION AND LIFESTYLE CATEGORIES

8

Note: Category splits based on FY2019 NMV share, excluding VAT/GST and delivery fees. (1) Based on Australia, Brazil and Russia.

ANZ SEA LATAM CIS

KIDS ◔ ◔ ◕ ◑

PREMIUM ◑ ◔ ◔ ◑

SPORT ◑ ◑ ◑ ◑

BEAUTY ○ ◔ ◔ ◔

HOME ○ ○ ◔ ◔

ASSORTMENT CATEGORY SPLIT2019 NMV SHARE

100-400kSKUs inmajor

markets1


INSPIRATION + BRAND BUILDING

AFFORDABILITY, VOLUME, SCALE

WE ARE A HOUSE OF BRANDS INSPIRING ACROSS A WIDE PRICE SPECTRUM

9

Note: Based on a selection of GFG brands, list not comprehensive.

We work with

78%of the top 50 global brands

Unbranded

Fast Fashion

Core Mainstream

Premium Lifestyle

Premium Fashion /Entry Luxury

LuxuryGFG

Assortment


46% 54%

0 % 10 % 2 0% 3 0% 4 0% 5 0% 6 0% 7 0% 8 0% 9 0% 10 0 %

79% 21%

0 % 10 % 2 0% 3 0% 4 0% 5 0% 6 0% 7 0% 8 0% 9 0% 10 0 %

77%

0 % 10 % 2 0% 3 0% 4 0% 5 0% 6 0% 7 0% 8 0% 9 0% 10 0 %

2019

THESE BUSINESS MODELS ENHANCE THE SCALABILITY OF OUR BUSINESS

10

FULFILLED BY GFGCROSS-DOCKING

DROP SHIPMENT

• Best model for core and low risk products

• Attractive gross margins

• Best model for new brands, new categories and long tail

• No inventory risk

• No working capital required

% OF SHIPPED ITEMS

CaymanA$2,190

Air MaxA$150

% OF NMV

% OF SKU’S

RETAIL MARKETPLACE


WE OPERATE ALL MAJOR PARTS OF THE FASHION ECOMMERCE VALUE CHAIN TO ENSURE A SEAMLESS CUSTOMER EXPERIENCE

11

Note: Based on FY2019.

CUSTOMER SERVICE SOURCING DELIVERY & RETURNSPAYMENT FULFILMENT

EPRODUCTION

35+Localisedpayment methods

20%+Deliveries withown fleet

30k+Pick-up points

24/7Support in 11 languages

10Fulfilment centres

830k+Daily item output capacity


APP CREATES A TRULY PERSONALISED EXPERIENCE FOR OUR CUSTOMERS

CONTENT & ADVICE THAT INSPIRE OUR CUSTOMERS…

12

… TOOLS TO CURATE WHAT THEY WANT TO SEE…

… CREATING A TRULY PERSONALISEDEXPERIENCE

E.G. COMPLETE THE LOOK E.G. SWIPE TO LIKE, FOLLOW THE BRAND UNIQUE, PERSONALISED FEED


CUSTOMERS LOVE SPENDING TIME AND SHOPPING ON OUR APPS

APP IS A CRITICAL PART OF THE CONVERSION FUNNELSHARE OF VISITS FROM APP (%)

13

HALF OF SALES ARE NOW FROM APPNMV FROM APP (€M), SHARE OF NMV FROM APP (%)

30%32%

42%

2017 2018 2019

491

604

895

0

10 0

2 00

3 00

4 00

5 00

6 00

7 00

8 00

9 00

1, 00 0

2017 2018 2019

+38%

+45%37% 50%42%

Note: Growth rates are shown on a constant currency basis and therefore exclude the effect of foreign currency movements.

34mApp

downloads(+40% yoy)


OUR FINANCIAL TRACKRECORD


STRONG NMV GROWTH DRIVEN BY ACCELERATING ORDERSAT A PROFITABLE AVERAGE ORDER VALUE

NMV(€M)

15

ORDERS(M)

AVERAGE ORDER VALUE(€)

15%

21%1,453.5

1,777.8

2018 2019

Retail Marketplace

28.234.6

2018 2019

51.6 51.3

2018 2019

+23.0%1

+23.0%

+0.0%1

(1) Constant currency growth rate. Bars are a graphical representation of values on a constant currency basis.


STRONG GROWTH IN CUSTOMERS, FREQUENCY AND ORDERS

2.22.4 2.5 2.6

2016 2017 2018 2019

ACTIVE CUSTOMERS(€M)

AVERAGE ORDER FREQUENCY(X)

NMV/ACTIVE CUSTOMER(€)

8.99.8

11.2

13.1

2016 2017 2018 2019

121

137130

136

2016 2017 2018 2019

16

+14% CAGR +4% CAGR+6% CAGR


CUSTOMER ACQUISITION COSTS MANAGED WITHIN A CLEAR CORRIDOR

CAC OVER TIME1

(€)

17

DECLINE IN MARKETING COSTS AS % OF REVENUE DESPITE STRONG GROWTH IN MARKETPLACE SHARE(%)

0

5

10

15

2 0

2 5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

13.9

11.6

9.8 9.7

2016 2017 2018 2019

(1) Values are expressed in constant currency, based on 31 December 2017 FX rates, to exclude the effect of FX changes.(2) Based on midpoint of range between maximum and minimum value.

2016 2017 2018 2019

Maintained within range2 of

+/-7%

Payback within

12months


WE HAVE ACHIEVED ATTRACTIVE AND SUSTAINABLE UNIT ECONOMICSFY2019 (€M)

18

(1) Includes payroll costs of private label designers.(2) Marketing includes marketing payroll costs.(3) Costs adjusted for one-off fees, mainly due to GFG’s IPO.

(4) Calculated as gross profit less selling and distribution expenses,(5) Excluding share-based payments.(6) Includes other operating income and expenses.


NMV VAT/GSTcommission/

other

Revenue Cost of sales1

Gross profit Fulfilment Marketing2,3 Contribution profit4

Tech & Admin3,5

D&A Other6 Adj. EBITDA5

Includes D&A

Includes D&A

1,346.0

1,777.8

539.8

(431.8)

(806.2)

(37.1)(0.2)61.6

(324.4)

(130.8)84.6 (183.1)

40.1% 24.1% 9.7% 6.3% 13.6%40.1% (2.8)%

Percent of revenue

RESULTING IN SIMULTANEOUS TOP-LINE GROWTH AND MARGIN EXPANSION

(1) Value of goods sold after cancellations, rejections and returns including VAT/GST and delivery fees.(2) Growth rates are shown on a constant currency basis and therefore exclude the effect of foreign currency movements.(3) Adjusted EBITDA is calculated as loss before interest and tax adjusted for depreciation of property, plant and equipment and right-of-use assets, amortisation of intangible assets and impairment losses, and adjusted for share-based

payment (income)/expenses as well as one-off fees related to the IPO, one-off tax adjustments, non-trading income and costs relating to the wind-down of a business discontinued pre-IPO.

2016 2017 2018 2019

ADJ. EBITDA MARGIN3

pp margin increase vs. previous period

REVENUE% Constant currency growth2

NMV1

% Constant currency growth2

19

(14.7)%Pre IFRS 16

(8.9)%Pre IFRS 16

+5.8PP

(4.3)%Post IFRS 16

+4.6pp

(2.8)%Post IFRS 16

+1.5pp

€887m €1,095m+20.1%

€1,156m+18.7%

€1,346m+17.2%

€1,076m €1,343m+20.5%

€1,453m+22.5%

€1,778m+23.0%


DISCIPLINED INVESTMENT IN CAPEX AND WORKING CAPITAL MANAGEMENT

DISCIPLINED INVESTMENT IN FULFILMENT AND TECHNOLOGY(€M)

20

26.9

48.9

15.0

23.2

41.9

72.1

2018 2019

PP&E Additions

Intangible Additions

EFFICIENT WORKING CAPITAL(€M)

(10.3)

(12.0)

2018 2019


ROBUST UNDERLYING GROWTH ACROSS ALL REGIONS


ACTIVE CUSTOMERS

NMV REVENUE GROSS PROFIT

FY2019 (M, YOY GROWTH) (€M, YOY GROWTH1) (€M, YOY GROWTH1) (€M, MARGIN)

Group 13.1+17.0%

1,777.8+23.0%

1,346.0+17.2%

539.840.1%

LATAM 5.9+17.8%

557.8+21.9%

401.4+18.4%

164.641.0%

CIS 3.0+9.5%

598.7+24.4%

442.9+14.5%

187.242.3%

SEA 2.6+28.1%

276.3+31.6%

237.7+29.3%

74.931.5%

ANZ 1.6+12.5%

345.1+16.5%

263.8+14.4%

120.245.5%

(1) Constant currency growth rate.

Q2/20 PERFORMANCE AND OUTLOOK


Q2 2020 HIGHLIGHTS

23

€488.3m NMV

+22.8% yoy1

10.6m ORDERS

+18.8% yoy

€263mPRO-FORMA CASH2

+2.8%ADJ. EBITDA MARGIN

+370bps yoy1

14.6m ACTIVE CUSTOMERS

+21.6% yoy

42.7%GROSS PROFIT MARGIN

+140bps yoy1

(1) Constant currency growth rate.(2) Includes restricted cash of €20m related to the RCF facility in place at the end of the period and approximately €10.5m drawn on local working capital facilities (Q1 20: €20m and €7.9m respectively).


ACCELERATED CUSTOMER ACQUISITION, PROMISING Q2 COHORT

DEMAND SHIFT REFLECTS CUSTOMER ACTIVITIES IN LOCKDOWN

24

PROMISING Q2 CUSTOMER COHORTACCELERATED NEW CUSTOMER ACQUISITION(M)

1.3 1.5

Q2/19 Q2/20

NEW CUSTOMERS WITH 2 OR MORE ORDERS(%)

2025

Q2/19 Q2/20

ORDERS PER NEW CUSTOMER

25%

9%

1.6

2.5

Q2/19 Q2/20

+56%

Lingerie Beauty

Kids Apparel

Lounge-wear

Occasion-wear

Formal Shoes

Women’s Dresses

Bes

t per

form

ing

Wor

st p

erfo

rmin

g

Swimwear

Opportunity for customer acquisition

remains significant


BRANDS LAUNCHED IN Q2

25

MARKETPLACEMORE BRANDS, MORE SKUS, MORE ITEMS

LATAM

CIS

SEA

ANZ

€85m

€152m

Q2 2019 Q2 2020

19% of NMV 31% of NMV

+90%1

Marketplace brands +c.50%

Marketplace SKUs +c.80%

Inventory intake -c.50%

(1) Constant currency growth rate.

Marketplace NMV oftop-30 brands

tripled YoY


ACCELERATED DEVELOPMENT OF MARKETPLACE AND BRAND PARTNERSHIPS

SIGNIFICANT IMPROVEMENT IN ADJ. EBITDA MARGIN DRIVEN BY GROSS MARGIN AND LEVERAGE OF MARKETING

26

GROSS PROFIT

FULFILMENT COSTS

MARKETING COSTS1

TECH & ADMIN COSTS1

ADJUSTED EBITDA

39.7%

24.7%

10.2%

14.8%

(4.8)%

2019

41.8%

25.3%

8.6%

14.5%

(2.2)%

2020

210bps

(60)bps

160bps

30bps

260bps

∆Improvement driven by a significant increase in Marketplace share and trading the Retail business carefully during lockdown

Increase due to higher proportion of MP orders, of which 71% were fulfilled by GFG; fulfilment CPO down by 9%

Significant leverage due to removal of spend as a result of COVID-19, CAC at historic lows during the period

Continued margin improvement, Q2 profitable

H1

(1) 2019 costs adjusted for one-off fees, mainly due to GFG’s IPO

Tech investment offsetting reduction in admin CIR


2020 GUIDANCE

27

NMV

REVENUE

ADJ. EBITDA MARGIN

CAPEX

• Constant currency growth of c. 20%

• FX changes in BRL and RUB impacting reported EUR result

• Slower than NMV reflecting the fast growth of MP

• FX changes in BRL and RUB impacting reported EUR result

• Intend to be Adj. EBITDA profitable no later than 2021

• Making significant progress in 2020 despite currency headwinds

• Investment for Brazil FC substantially completed in H1

• No need for significant spend on new CIS FC in FY20

2020 GUIDANCE

c. 20%c.€1.9bn

c. €1.3bn

Approaching Breakeven

No more than €45m

2020 (NEW)

+23%€1.78bn

+17%€1.35bn

(2.8)%

€72m

2019

17-20%>€2.0bn

c. €1.5bn

Profitable by 2021

c. €55m

2020 (CMD)


MEDIUM-TERM GUIDANCE1 TO ACHIEVE AT LEAST A 6% ADJUSTED EBITDA MARGIN IN 3-4 YEARS‘ TIME

2019 MEDIUM-TERM

28

KEY ASSUMPTIONS

ADJUSTED EBITDA 6%+(2.8)%

• NMV growth 20%+ constant currency after 2020

GROSS MARGIN 40.1%

FULFILMENT COSTS (24.1)%

MARKETING COSTS (9.7)%

TECH & ADMIN COSTS (13.6)%

MARKETPLACE SHARE 30%+21.0%

NMV GROWTH 20%+23.0%

• Marketplace share aspiration of 30% of NMV

• Ongoing growth in gross margin with Marketplace tailwind

• Modest growth in Fulfillment CIR due to Marketplace mix

• Ongoing leverage on Tech & Admin costs as achieve scale

• 6%+ in 3-4 years time

• Modest further leverage in the marketing CIR

CAPEX Less than €50m+(72.1) • Capex less than €50m after 2020


(1) Given at the Capital Markets Day presentation on 3-Mar-2020

APPENDIX


0%

100%

ANZ SEA LATAM CIS

SHARE OF ONLINE FASHION AND LIFESTYLE IN GFG MARKETS (2019)

8 0%

10 0 %

Brand.com Fashion Pureplay GeneralMerchandise

DepartmentStores (online)

WE ARE THE CLEAR #1 WITHIN ONLINE FASHION PUREPLAY

30

GFG VS. #2 FASHION PUREPLAY BY ONLINE APPAREL AND FOOTWEAR SALES1 (2019)

#1

Source: GFG calculations based on data from Euromonitor International Ltd: Retailing 2020 edition, Retail value RSP incl. Sales Tax, Fixed 2019 ex rates, Current Prices. Ranking position based on estimated by Euromonitor online sales of apparel and footwear products in researched GFG countries in 2019, including specialist fashion and lifestyle apparel and footwear online retailers only. (1) Based on GFG markets only.

#1#1 #1

8%of total market

EXAMPLES: EXAMPLES:

€22bn

EXAMPLES:EXAMPLES:


HIGH CUSTOMER LOYALTY, WITH GROWING SHARE OF NMV FROM EXISTING CUSTOMERS

31

NMV BY COHORT1

(€M)

71% OF NMV FROM EXISTING CUSTOMERS

Source: Company information. To ensure comparability between periods we have adjusted values for prior periods for acquisitions, disposals and corporate restructurings.(1) Values are expressed in constant currency, based on 31 December 2017 FX rates, to exclude the effect of FX changes.

44%

37%

32%

29%

2016 2017 2018 2019

2015 and prior 2016 Cohort 2017 Cohort 2018 Cohort 2019 Cohort

€1.1bn€1.3bn

€1.5bn

€1.8bn


RETAIL SPACEINFRASTRUCTURE TERRAIN REGULATION

WE UNLOCK A HUGE, GROWING MARKET THAT IS COMPLEX FOR BRANDS TO ACCESS

32

• Lack of retail space vs developed markets

• US has 5x more retail space1 than our combined footprint

• Underdeveloped infrastructure and ecommerce solution providers

• Population located across vast and remote areas

• Complex import processes, regulatory and tax environments

7%Retail space per capita2 in GFG countries vs US

Source: GFG calculations based on data from Economist Intelligence Unit via SNL, World Bank International Logistics Performance Index (LPI) 2018, The World Bank: Land area: Food and Agriculture Organization.(1) Based on median LPI ranking of GFG countries. (2) Including clothing stores, shoe stores, and perfumeries/beauty stores.

~50 >1/3 ~80%Average logistics

performance index ranking1 (out of 160)

of global land mass

of GFG items supplied locally


WE OFFER BRANDS MULTIPLE PARTNERSHIP MODELS, TAILORED TO THEIR REQUIREMENTS

33

(1) GFG consolidates mixed orders at own fulfilment centre in Argentina, Chile and Colombia.

RETAILMARKETPLACE

FULFILLED BY GFG CROSS-DOCKING DROP SHIPMENT

ARGENTINA, CHILE, COLOMBIA, SEA (SOME) ANZ, BRAZIL, SEA (SOME)CIS, SEA (SOME)

High LowTAKE RATE / LEVEL OF SERVICE PROVIDED BY GFG

FRONT-END

PRODUCT OWNERSHIP

STORAGE

PICKING & PACKING

DELIVERY

GFG (including payment, customer service, returns)

GFG owns product& pricing

Brand owns product & pricing; books full retail valueGFG take rate dependent on fulfilment model

GFG Brand

GFGBrand picks & packs; GFG

manages delivery, incl.order consolidation1

Brand

GFG (own or 3rd party) Brand


ILLUSTRATIVE 2019 P&L OF MARKETPLACE1

MARKETPLACE FULFILMENT IN INCOME STATEMENT

34

• Profitability of Marketplace is higher than Retail as a percentage of Revenue and of NMV

• “Fulfilled by GFG” Marketplace inflates fulfilment CIR as percentage of Revenue, but not as share of NMV

• Illustration:

- If the Group achieves 30% Marketplace share it would see gross margin increase by 3pp of Revenue, and 1pp would be spent on higher fulfilment CIR

(1) Based on Unaudited information & simplified for presentation.(2) Cost Income Ratio shown as a proportion of NMV Product Value (excluding VAT and excluding shipping fees).

GFG RETAIL MARKET PLACE

SHARE OF NMV 100% 79% 21%

RETAIL MARGIN / TAKE-RATE - 35% 32%

FULFILMENT COSTS

% REVENUE 24% 22% 50%

% NMV2 22% 23% 16%

PROFIT AFTER FULFILMENT

% REVENUE 16% 13% 50%

% NMV2 14% 13% 16%


TAILORED APPROACH TO EACH MARKET ENABLES RETURN RATES WELL BELOW INDUSTRY LEVELSRETURNS BY SEGMENT(% OF 2019 SHIPPED ITEMS)

35

Note: Excludes item rejections, which were 1% in APAC, 1% in LATAM and 66% in CIS.

24%APAC

8%LATAM

1%CIS

Enabled by 80% “try-on” orders


NOW ADJUSTED EBITDA PROFITABLE IN REGIONS REPRESENTING OVER 80% OF GROUP REVENUE

REGIONAL ADJUSTED EBITDA IN FY 2019(€M)

• LATAM, CIS and Australia within APAC have positive Adjusted EBITDA

• Profitable regions account for >80% of revenue (2018: >50% of revenue)

• SEA remains Adjusted EBITDA negative, but showed significant year on year improvement in 2019

36

6.14.3 (22.4)

(25.1)

(37.1)

LATAM CIS APAC Group Total


DISCLAIMER

Certain statements included in this document are forward-looking statements. Forward-looking statements can typically beidentified by the use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or“anticipates” or other words of similar meaning. These forward-looking statements are based upon current expectations andassumptions regarding anticipated developments and other factors affecting the Global Fashion Group S.A. (“GFG”) and itsgroup (the “GFG Group”). They are not historical or current facts, nor are they guarantees of future performance.

By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actualresults or events to differ materially from those expressed or implied by the forward-looking statements. These risks,uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described inthis document. These forward-looking statements speak only as of the date of this announcement. Except as required by anyapplicable law or regulation, the GFG Group expressly disclaims any obligation or undertaking to release publicly anyupdates or revisions to any forward-looking statements contained in this document to reflect any change in the GFG Group’sexpectations with regard thereto or any change in events, conditions or circumstances on which any such forward-lookingstatement is based. Neither GFG nor any other person accepts any responsibility for the accuracy of the opinions expressedin this document or the underlying assumptions.

Documents

#1 FASHION AND LIFESTYLE DESTINATION IN GROWTH MARKETS€¦ · FASHION AND LIFESTYLE SPENDING IN GFG FOOTPRINT1 5 LONG-TERM GROWTH POTENTIAL FASHION AND LIFESTYLE ONLINE PENETRATION