Upload
others
View
12
Download
0
Embed Size (px)
Citation preview
Investor & Analyst PresentationSemi-annual report, August 14th, 2019
Dr. Cornelius Patt, CEO
Investor & Analyst Presentation H1 2019 – August 2019 | 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 and uncertainties 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. 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.
Safe Harbor Statement
Investor & Analyst Presentation H1 2019 – August 2019 | page 3
zooplus continues on its growth path
» Sales increased by 13% to € 727 m in H1 2019
» Accelerated sales growth from 13% in Q1 2019 to 14% in Q2 2019
» Private label sales for food and cat litter growing faster in H1 2019 with 29% vs. PY
» Registered new customer intake with strong momentum in H1 2019 vs. PY (+23%)
» Gross margin comes in at 28.4% in H1 2019, improved vs. PY (+0.7pp)
» EBITDA positive at € 4.5 m (H1 2018: - € 5.0 m)
» Free cash flow positive at € 6.9 m
» Sales and profit guidance for full year 2019 confirmed:
− Sales growth of 14% to 18%
− EBITDA in the range of € 10 m to € 30 m
Investor & Analyst Presentation H1 2019 – August 2019 | page 4
Sales continue to grow – high retention core of the growth path
1) in local currencies2013 2014 2015 2016
711
2019e2018
909
1,342
407
543
1,111
2017
+136
+168
+198
+202
+231
91%94%
92%
94%1
93%
93%1
22%28%31%33%28%Sales growth
vs. PY
Repeat
customer sales
New customer
sales (1st year)
21%
94%
95%1
14% –
18%
92%
92%1
1,532 –
1,582
+190-240
H1
Investor & Analyst Presentation H1 2019 – August 2019 | page 5
Sales increased by 13% to € 727 m in H1 2019, slight acceleration in Q2 2019
643
727
H1 2018 H1 2019
+13%
FX adjusted +13%
Sales (€ m)
» Sales driven by high customer
loyalty and increased new
customer business
» Absolute growth of € 84 m
» Increase in growth rate from 13%
in Q1 2019 to 14% in Q2 2019
» Private label food and cat litter
sales grew 29% vs. PY, revenue
share expanded to 15% of total
sales
» Non-food flat vs. PY
Investor & Analyst Presentation H1 2019 – August 2019 | page 6
HU
Source: zooplus sales, unaudited data, growth rates compared to H1 2018;
market shares based on Euromonitor 2016 market data and zooplus estimation
112m
Total market 2018
23bnSales zooplus in
2018
DK, SE,
FI, NO
D,A,CHCZ, SK, HU, RO,
SI, HR, BG, TR,
GR, LV, LT, EE
ES, PT
zooplus is online market leader in Europe by a distance
NL, BE, LU
+9%
+5%
+11%
+9%
+10%
+24%
+14%
+15%
86m
149m
387m
84m
224m
82m
108m
1,342m
zooplus market
share in 2018
7.0%
2.7%
6.0%
4.7%
4.4%
5.7%
8. 2%
5.4%
5.8%
UK, IE
IT
FR, MC
Sales growth in
H1 2019
110m16.0%
+25%
PL
» Sales growth H1 2019:
+ 13% (+13% fx-adjusted)
Investor & Analyst Presentation H1 2019 – August 2019 | page 7
Sales retention as major business driver on continuously high level
94% 92%
H1 2018 H1 2019
Sales retention rate1
1 Sales retention (net, non-BMF)
» GDPR impact on customer activation
of early stage cohort, measures started
to improve activation
» Subscription-like business model due
to high customer loyalty with recurring
repurchase activity
» Continous strong focus on retention
rate
Investor & Analyst Presentation H1 2019 – August 2019 | page 8
Strong acquisition momentum in new registered customers in H1 2019
1,190
1,460
H1 2018 H1 2019
Registered new customers (in k)
» Registered new customer growth
based mainly on traditional Google
marketing
» Higher marketing spend and
optimization of Google bidding
» New additional marketing initiatives
targeting brand awareness across
online- and offline-shoppers kicked-
off end of May 2019
+ 23%
Investor & Analyst Presentation H1 2019 – August 2019 | page 9
Gross margin stabilization continues in H1 2019
in % of sales
1 Sales – CoGS
Gross margin1
» Less customer and transactional
discounts
» Reduction of non-profitable orders
» Introduction of dynamic shipping fee
for high-volume baskets
» Favorable sourcing conditions
» Further growth in high-margin
private label business
27.7%28.4%
H1 2018 H1 2019
+ 0.7 %p
Investor & Analyst Presentation H1 2019 – August 2019 | page 10
3.3% 3.5%
2.5% 2.2%
20.2% 18.4%
2.0%3.3%
Significant cost savings in logistics and IT/admin have been invested in additional marketing spend
Total margin1
1.0% 1.1% 1.0%
29.0% 28.5%
1 Gross margin + other income on sales 3 All in, including LTI & SOP
1.1%IT/Admin2
Advertising/
Marketing
Logistics2
Personnel3
Payment
Total margin & cost structure (in % of sales)
2 Logistics costs of 0.8%p and Admin costs of 0.2%p in H1 2019 reclassified to
depreciation and interests according to new IFRS 16
1.0%
28.2%
1.9%
29.1%
» Continued strong cost efficiency and
optimization within cost structure
» Operational improvement and
increased value per parcel driving
logistics costs down by 1.0 %p
(excluding IFRS 16)
» Reallocation of resources into
marketing spend for further growth
» On-top marketing spend in Q2 2019
for 20-year campaign
EBITDA-0.8% 0.6%
H1 2018 H1 2019
Investor & Analyst Presentation H1 2019 – August 2019 | page 11
Expanding addressable audience through additional marketing initiatives
» Google continues to be most relevant
acquisition channel
» Enhanced marketing strategy to
increase brand awareness of zooplus
with online and offline shoppers
» Additional marketing activities started
only end May 2019
» Too early to comprehensively
evaluate success of individual
activities due to repurchase pattern
+Offline & online
marketing activities
Investor & Analyst Presentation - Annual Report 2018 | page 12
» Now 12 fulfillment centers across Europe
» Italy with new medium sized FC close to Milano (8,000 sqm)
» Streamlined operations by integrating two small FCs in France and Poland into existing structures
» All FCs operated by logistics specialist partners; almost no capex requirement for zooplus
» SKU allocation, replenishment,
order routing and packing algorithms intellectual property of zooplus
With the opening of the Italian FC in Q2 2019 the last white spot in the logistics network has been closed
2013
2015
Fulfillment center (FC)
2009
2016
2017/18
2000/2011
2017
2018
2019
2018
Southern coveragecompleted withnew Italian FC
Investor & Analyst Presentation H1 2019 – August 2019 | page 13
Earnings improved vs. H1 2018, EBITDA positive with € 4.5 m
-5.0
4.5
-9.2 -9.1
+ 9.5 + 0.1
in % of sales -0.8 %
0.6 %
-1.4 % -1.3 %
EBITDA (€ m) EBT (€ m)
EBITDA 2019 based on full IFRS 16 application; delta EBITDA vs. PY + € 2.0 m
without IFRS 16 impact
H1 2018 H1 2019 H1 2018 H1 2019
Investor & Analyst Presentation H1 2019 – August 2019 | page 14
Earnings improved vs. H1 2018, EBITDA positive with € 4.5 m
IFRS 16 impact on H1 2019 vs. H1 2018:
Logistics costs: € 5.9 m (0.8%p) into depreciation
Admin costs: € 1.6 m (0.2%p) into depreciation
EBITDA H1 2018: € -5.0 m
EBITDA H1 2019: € 4.5 m
Improvement EBITDA: € 9.5 m thereof € 7.5 m due to IFRS 16
Investor & Analyst Presentation H1 2019 – August 2019 | page 15
Positive Free cash flow through further improvements in working capital
Cash flow (€ m)
Cash flow from
operating
activities
Cash flow from
investing
activities
Free cash flow2.5 %
H1 2019
9.2
-2.4
3.1 %
6.9
Major focus on working capital and
operating cash flow improvements
with main drivers:
» Inventory turn
» Payment days
Free cash flow impact in H1 2019 due to IFRS 16: € +7.8 m
Investor & Analyst Presentation H1 2019 – August 2019 | page 16
Strategic remarks in view of the Chewy IPO
1. There is room next to amazon
2. zooplus is a recurring revenue / subscription type business model
3. Valuation comparison zooplus and Chewy
Investor & Analyst Presentation H1 2019 – August 2019 | page 17
Pet specialist
There is a good way of living next to amazon as a differentiated category specialist
zooplus clearly differentiates already today from amazon and will do even
more in future (emotionalization, pet services, branding etc.)
Generalist
» zooplus has expanded the business with amazon in the market since more than 10 years
» Very high retention rates and record new customer intake
» Preferred partner for premium supplier base with the widest reach in Europe
» US peer Chewy proves again that there is room next to amazon in the category
Investor & Analyst Presentation H1 2019 – August 2019 | page 18
zooplus is a recurring revenue / subscription type business model like Chewy
92%
61%
75%80%
87%90% 92%
Wayfair Asos Zalando NetflixBohoo
Even without formal companywide subscription models, zooplus customers
behave like autoshipment
Source: Liberum – Consumer Discretionary Report 15 May 2019; Sales retention in local currencies.
Chewy Q1 2019 presentation webcast
sales retention rates of different business models
» At Chewy 2/3 of business comes
from autoshipment and the rest
„behaves like autoship…“
» At zooplus all repeat customers
behave like autoship
» Formal autoshipment (subscription)
in place in Germany, to be rolled out
in other markets
Investor & Analyst Presentation H1 2019 – August 2019 | page 19
Significant valuation gap between zooplus and US peer Chewy
» Online market leader by far ahead of
amazon
» Sales growth guidance 2019: 14-18%
» Marketing spend: ~ 3% of sales
» Retention rate 92%
» European-wide fully integrated
logistics network managed by zooplus
» EBITDA-margin 2018: 0.6% of sales
» Long-term EBITDA margin: 5-7%
Market
valuation: 0.5 x sales 2019Market
valuation: 2.7 x sales 2019
» Online market leader slightly ahead of
amazon
» Sales growth guidance 2019: 36-38%
» Marketing spend: ~ 10% of sales
» Retention rate > 100%
» US-wide logistics network owned by
Chewy
» Adj. EBITDA-margin 2018: - 7% of sales
» Long-term adj. EBITDA margin: 5-10%,
thereof 5-8%p from gross margin
Source: Chewy S-1 filings and Q1 2019 trading statement, market valuation as of August 11th
Investor & Analyst Presentation H1 2019 – August 2019 | page 20
H1 2019
Q & A
Investor & Analyst Presentation H1 2019 – August 2019 | page 21
Key financials H1 2019
1 impairment expenses of financial assets reclassified to payment
2 own work capitalized reclassified to personel
Due to the application of IFRS 16 in H1 2019, additional € 6.3 m logistics and € 1.5 m G&A costs are reclassified to depreciation
P&L
in € m
Sales 726.6 642.8
abs. 83.9
Δ in % 13.0%
4.7 3.2
0.6% 0.5%
-520.0 -464.7
-71.6% -72.3%
-133.7 -129.8
-18.4% -20.2%
-7.9 -6.6
-1.1% -1.0%
-23.7 -12.7
-3.3% -2.0%
-25.6 -21.0
-3.5% -3.3%
-16.0 -16.1
-2.2% -2.5%
4.5 -5.0
0.6% -0.8%
-13.6 -4.2
-1.9% -0.7%
-9.1 -9.2
-1.3% -1.4%
EPS in EUR (basic) -0.99 -0.92
Balance Sheet
Total Assets 353.9 275.2 78.7
105.0 106.4
29.7% 38.7%
Cash Flow
Free Cash Flow 6.9 3.7 3.2
Other income 1.5 0.2%p
COGS -55.3 0.7%p
Logistics -3.8 1.8%p
Payment1 -1.3 -0.1%p
EBITDA 9.5 1.4%p
Customer acquisition -11.0 -1.3%p
Personnel2 -4.6 -0.3%p
H1 2019 H1 2018 ∆ abs ∆ %p
Equity (Ratio in %) -1.4
I&DA -9.4 -1.2%p
EBT 0.1 0.2%p
G&A 0.1 0.3%p
Investor & Analyst Presentation H1 2019 – August 2019 | page 22
Profit & Loss H1 2019
abs % abs %
Sales 726.6 100.0% 642.8 100.0%
Other income 4.7 0.6% 3.2 0.5%
Cost of ma teria ls -520.0 -71.6% -464.7 -72.3%
Personnel costs -25.6 -3.5% -21.0 -3.3%
Other expenses -181.3 -25.0% -165.3 -25.7%
thereof logistics / fulfillment -133.7 -18.4% -129.8 -20.2%
thereof marketing -23.7 -3.3% -12.7 -2.0%
thereof payment -7.9 -1.1% -6.6 -1.0%
thereof other costs -16.0 -2.2% -16.1 -2.5%
Earnings before depreciation,
interest and taxes (EBITDA) 4.5 0.6% -5.0 -0.8%
Depreciation -12.9 -1.8% -3.9 -0.6%
Fina ncia l income 0.0 0.0% 0.0 0.0%
Fina ncia l expenses -0.8 -0.1% -0.3 0.0%
Earnings before taxes (EBT) -9.1 -1.3% -9.2 -1.4%
Taxes on income 2.1 0.3% 2.6 0.4%
Consolidated net result -7.1 -1.0% -6.6 -1.0%
Differences from currency
trans la tion -0.1 0.0% -0.4 -0.1%
Hedge reserve 0.1 0.0% 0.9 0.1%
Items that may be relclassified
subsequently to profit or loss 0.0 0.0% 0.5 0.1%
Comprehensive income -7.0 -1.0% -6.0 -0.9%
Earnings per share in €
bas ic -0.99 - -0.92 -
di luted -0.99 - -0.92 -
in € mH1 2019 H1 2018
Investor & Analyst Presentation H1 2019 – August 2019 | page 23
Balance Sheet as of June 30th, 2019
As s ets
in € mJune 30th.
2019
Dec. 31st.
2018∆ abs
A. Non-current assets
I. PP&E 5.7 55.9 -50.2
II. Right-o f-use assets 80.4 0.0 80.4
III. Intangible assets 13.8 14.2 -0.4
IV. Deferred tax assets 1.3 0.0 1.3
Total non-current assets 101.2 70.0 31.2
B. Current assets
I. Inventories 115.1 107.6 7.5
II. Advance payments 0.0 0.4 -0.4
III. Accounts receivable 34.3 28.1 6.2
IV. Other current assets 24.6 16.1 8.5
V. Contract assets 21.0 19.0 2.0
VI. Tax receivables 0.9 0.9 0.0
VII.Derivative financial
instruments0.3 0.0 0.3
VIII. Cash and cash equivalents 56.5 59.5 -3.0
Total current assets 252.7 231.7 21.0
353.9 301.8 52.2
E quity and L iabilities
in € mJune 30th.
2019
Dec. 31st.
2018∆ abs
A. Equity
I. Capital subscribed 7.1 7.1 0.0
II. Capital reserves 101.7 100.8 1.0
III. Other reserves -1.8 -1.8 0.0
IV. Profit and Loss carried forward -2.1 4.9 -7.1
Total equity 105.0 111.1 -6.1
B. Non-current liabilities 62.4 41.4 21.0
C. Current liabilities
I. Accounts payable 125.3 99.7 25.5
II Derivative financial instruments 0.2 0.1 0.1
III. Other current liabilities 21.5 19.9 1.6
IV. Contract liabilities 17.9 17.1 0.8
V. Tax liabilites 0.1 0.1 -0.1
VI. Finance lease 19.1 9.8 9.3
VII. Provisions 2.6 2.6 0.0
VIII. Deferred income 0.0 0.0 0.0
Total current liabilities 186.5 149.3 37.2
353.9 301.8 52.2
Investor & Analyst Presentation H1 2019 – August 2019 | page 24
Cash flow H1 2019
in € m H1 2019 H1 2018
EBT -9.1 -9.2
Cash flow from operating activities 9.2 8.0
Cash flow from investing activities -2.4 -4.3
Free cash flow 6.9 3.7
Cash flow from financing activities -9.9 -2.3
Currency effects on cash and cash equivalents 0.1 -0.2
Net change of cash and cash equivalents -3.0 1.2
Cash on hand, bank deposits 56.5 52.4
Investor & Analyst Presentation H1 2019 – August 2019 | page 25
Major KPIs per quarter
Major KPIs Q1 2019 Q2 2019 Q3 2019 Q4 2019
Sales (in € m) 363.2 363.5
Δ vs. PY 12.6% 13.5%
Private label growth vs. PY 29% 29%
New customer count (in k) 818 792
t/o registered new customers (in k) 739 721
t/o unregistered new customers (in k) 79 71
Sales retention (net, Non-BMF) 93% 92%
Total Margin 28.8% 29.4%
Cost ratio 28.2% 28.7%
EBITDA (in € m) 2.2 2.3
EBITDA 0.6% 0.6%