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P A G E N U M B E R
This presentation has been prepared by YOOX NET-A-PORTER GROUP 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 NET-A-PORTER 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 and/or the industry in which the Company operates, are or may be forward-looking statements based on YOOX NET-A-PORTER GROUP S.p.A.’s current expectations and projections about future events, and in this respect may involve risks and uncertainties.
Actual future results for any quarter, half-year 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 NET-A-PORTER GROUP 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 and financial conditions (also deriving from or connected to the recent ‚Brexit Referendum‛ outcomes) on our business and to predict future economic conditions, the Group’s ability to achieve and manage growth, the degree to which YOOX NET-A-PORTER GROUP 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, unfavorable 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 NET-A-PORTER GROUP S.p.A. does not guarantee that the assumption underlying any forward-looking statements in this presentation are free from errors nor does not it accept any responsibility for the future accuracy of the opinions expressed in this presentation.
YOOX NET-A-PORTER GROUP S.p.A. does not undertake any obligation to review, update or confirm investors’ expectations and/or estimates or 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 NET-A-PORTER 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.
P A G E N U M B E R
In the entire presentation, the pro-forma financials and some performance indicators (hereafter the ‚pro-forma financials‛) relating to the financial years ended 31 December 2015 and
31 December 2014 and to the periods ended 30 June 2016 and 30 June 2015 of YOOX-NET-A-PORTER GROUP S.p.A. are laid out.
The pro-forma financials for the periods ended 31 December 2015, 31 December 2014 and 30 June 2015 derive from those contained in the Informative Document on the merger by
absorption of Largenta Italia S.p.A. into YOOX S.p.A. published on 3 October 2015 and were subject to audit by the independent auditors with an audit report issued on 28 August
2015. The pro-forma financials for the periods ended 31 December 2015, 31 December 2014 and 30 June 2015 have been prepared by aggregating the historical data of YOOX GROUP
and of THE NET-A-PORTER GROUP and then carrying out the adjustments specified below for the purpose of simulating - according to valuation criteria consistent with the historical
data and compliant, where appropriate, with the reference regulation represented by the International Financial Reporting Standards (‚IFRS‛) endorsed by the European Union - the
economic effects of the merger on the operating performance of YOOX NET-A-PORTER GROUP as if such transaction had virtually occurred, respectively, at the beginning of fiscal
year 2015 (1 January 2015) and at the beginning of fiscal year 2014 (1 January 2014). Please note that the information contained in the pro-forma financials of YOOX NET-A-PORTER
GROUP represents, as mentioned above, a simulation, provided for illustration purposes only, of the possible effects of the merger on YOOX NET-A-PORTER GROUP’s financials. In
particular, YOOX NET-A-PORTER GROUP pro-forma financials implied the adjustment of actual figures to retroactively reflect the effects of the merger; as a result, in spite of the
compliance with the general criteria commonly accepted and the use of reasonable assumptions, intrinsic limits of the actual nature of the pro-forma financials persist because they are
representations based on assumptions. Therefore, pro-forma financials should not be deemed representative of the results that would have been achieved if the transactions
considered in the preparation of the pro-forma financials had actually taken place as at the dates taken as a reference. Pro-forma financials reproduce a hypothetical situation and
therefore do not intend in any way to depict current or prospective financials of YOOX NET-A-PORTER GROUP. In light of the different purposes of the pro-forma financials compared
to the historical financial statements, and, as regards those latter, of the conversion and restatement of THE NET-A-PORTER GROUP Limited data in the abovementioned terms, as
well as of the different computation modalities of the effects of the merger with reference to the pro-forma financials presented, such pro-forma financials shall be read and construed
independently from historical data, without seeking accounting connections between them. Pro-forma financials do not, in any way, intend to represent a forecast of future results and
should therefore not be used for this purpose: pro-forma financials do not reflect prospective data in that they are only prepared to represent the most significant effects, capable of
being isolated and objectively measured, of the merger and the associated economic transactions, without taking into account the potential effects resulting from any management
decisions and operational choices taken as a result of the merger.
The most important adjustments are outlined below:
– elimination of costs related to fair value adjustments of THE NET-A-PORTER GROUP Limited B-Shares associated with an incentive plan, the cost of which has been borne by the
Richemont Group;
– elimination of debt and related costs due to the interruption of non-commercial relations between the companies of THE NET-A-PORTER GROUP Limited and the companies of
the Richemont Group;
– elimination of financial income and expenses deriving from extinguished financial liabilities of THE NET-A-PORTER GROUP Limited;
– elimination of non-recurring costs borne in connection with the merger between YOOX Group and THE NET-A-PORTER GROUP Limited;
– elimination of the related tax effects on the aforementioned adjustments, where applicable.
Preliminary consolidated financials for the period ended 30 September 2016 of YOOX NET-A-PORTER GROUP (‚YNAP‛) are compared with pro-forma consolidated financials for the
period ended 30 September 2015, which were prepared by aggregating the historical data of YOOX GROUP and of THE NET-A-PORTER GROUP and then carrying out adjustments for
the purpose of simulating the economic effects of the merger on the operating performance of YNAP as if such transaction had virtually occurred on 1 January 2015.
Historical financial data of YOOX GROUP and of THE NET-A-PORTER GROUP at 30 September 2015 derive, respectively, from the unaudited consolidated interim report of YOOX
GROUP at 30 September 2015 and from the unaudited consolidated interim financial statements of THE NET-A-PORTER GROUP at 30 September 2015 prepared in accordance with
the accounting principles applicable in the UK; such data was originally expressed in Sterling and for the purpose of being included in the pro-forma financials of YNAP has been
converted into Euro and arranged according to the presentation criteria adopted by YOOX GROUP.
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
Rest of Europe
48.8%
Global premier online luxury fashion destination for content and commerce for the season’s must-have womenswear collections
Unparalleled editorial content, including its weekly online magazine THE EDIT and bi-monthly print magazine PORTER
Global destination for men’s style with unparalleled offering from the season of the leading menswear, watchmakers and
specialist grooming brands Rich editorial content through
the weekly online magazine The Journal and bi-monthly newspaper The MR PORTER Post
MULTI-BRAND IN-SEASON MULTI-BRAND OFF-SEASON
Rest of Europe
48.8% The world’s leading online
lifestyle store for fashion, design and art
Broad offering of off-season premium apparel and accessories, exclusive collections, home & design and artworks
Rest of Europe
48.8%
Go-to destination for previous-season designer fashion for the global style-conscious woman looking for the best designer products at great prices
In-house label of styling essentials ‚Iris and Ink‛
ONLINE FLAGSHIP STORES
Official Online Flagship Stores of leading fashion and luxury brands for which YNAP is the exclusive partner
Long-term partnerships
and many more …
JVCo with Kering
.com
.com
.com
.com .com
.com
.com
.com
.com
.com
.com
.com
.com
.com
.com
.com
.com
Proprietary business where YNAP operates as an e-tailer for the season’s luxury fashion collections under its four own brand names
Proprietary business where YNAP operates as an e-tailer mainly for the previous-season designer fashion under its two own brand names
‚Powered by YOOX NET-A-PORTER GROUP‛
Multi-brand In-Season
Multi-brand Off-Season
Online Flagship Stores 54%
36%
10% 7%
16%
26% 30%
15% 6% Italy
UKRest of EuropeNorth AmericaAPACRoW + NCR
Net Revenues by Geography Net Revenues by Business Line
7.1m Orders
€352 AOV
2,5m Active Customers
€1.7bn Net Revenues
€133m Adj.EBITDA
€62m Net Cash Position
FY 2015 Highlights1
1. Pro-forma figures
P A G E N U M B E R
3 distinct business lines to cater to their respective customer bases with unique and highly-differentiated value
propositions
One shared global technology and logistics platform powering all business lines, markets and channels and common
corporate functions to fully unlock synergies
MULTI-BRAND IN-SEASON MULTI-BRAND OFF-SEASON ONLINE FLAGSHIP STORES
THE PLATFORM (Technology and R&D, Operations and Private Label Sourcing)
CORPORATE FUNCTIONS
JVCo with Kering
and many more …
‚POWERED BY YOOX NET-A-PORTER GROUP‛
P A G E N U M B E R
1. Refers to FY 2015
Over 180 countries served DCs
US, UK, Italy, China, Hong Kong, Japan
Customer care covering all time zones
Local Offices:
New York, London, Milan, Bologna, Paris, Hong Kong, Shanghai, Tokyo
Same-Day Delivery in London, Manhattan, Connecticut and Hong Kong
Digital production facilities
US, UK, Italy, China, Hong Kong, Japan
Butler service and authenticity RFid seal
1 order processed every 4 seconds1
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
– RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS
– NET REVENUE REVIEW AND KPIs
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
3Q 2016 Net Revenues at €435 million, +19%
organic1 and +12% reported2 compared with
pro-forma net revenues of €390 million in 3Q
2015
Acceleration in revenue growth on 1H 2016
driven by North America and APAC
Strong organic performance across all
business lines
3Q performance led to 9M 2016 Net Revenues
of €1.3 billion, +17% organic1 and +13%
reported2
1. Organic net revenue growth is calculated at constant exchange rates and at comparable perimeter by including net revenues of all online stores active at the end of each period, which were also active at the beginning of the same period of the previous year. Reported growth is calculated at current exchange rates and at actual perimeter
2. Reported net revenue growth calculated at current exchange rates and at actual business perimeter 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
P A G E N U M B E R
MULTI-BRAND IN-SEASON
First key platform integration milestone: migration of all former YOOX GROUP’s online stores to new Order Management
System successfully completed in early November, in line with schedule
Consolidation of Hong Kong distribution centre
PLATFORM
Remarkable enhancement of product offer
– Unprecedented global commercial partnership with IWC Schaffhausen (Richemont): NET-A-PORTER and MR PORTER,
the first-ever online retailers carrying IWC luxury watches
– In Q3 - PRADA debuting on NET-A-PORTER and MR PORTER; Moncler on NET-A-PORTER; Giorgio Armani and
Ermenegildo Zegna on MR PORTER
Launch of MR PORTER Apple TV app in September
Roll-out of PORTER’s fully-shoppable Android app in August
Global partnership with Marni renewed for a further 5 years until 15 October 2021
Discontinuation of 3 agreements, together accounting for 0.6% of the Group’s pro-forma net revenues in 2015: Sergio Rossi in
1H 2017; Bikkembergs and Dolce & Gabbana in September 2016; partnerships to be refocused on the Group’s multi-brand
divisions in order to maximise their online business potential
ONLINE FLAGSHIP STORES
Go-live of the new YOOX in September, supported by multi-channel ADV campaign to enhance brand positioning and drive
awareness
– Highly customised shopping experience leveraging real-time browsing behavior, previous buying history and city-based
geo-localisation capabilities driving significant improvements in conversion and bounce rates
Roll-out of THE OUTNET first Android native app in October
Introduction of first Iris & Ink footwear collection in September and debut of Tom Ford on THE OUTNET in October
Revision of THE OUTNET’s graphic interface and typeface to make it more mobile friendly
MULTI-BRAND OFF-SEASON
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
– RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS
– NET REVENUE REVIEW AND KPIs
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
€36.9m €42.4m
€152.4m €178.0m
€200.6m €215.1m
Net Revenue Performance and Breakdown
@constant FX @current FX
3Q 2016 Group Growth
51.4% 9.5%
49.4%
40.9%
Mono-brand Gross Merchandise Value2 Growth
14.7%
9.3% 24.0%
Mono-brandNet Revenue Growth
Impact of differentbooking for the
JV online store sales
Mono-brand Gross MerchandiseGrowth
1. Organic net revenue growth is calculated at constant exchange rates and at comparable perimeter by including net revenues of all online stores active at the end of each period, which were also active at the beginning of the same period of the previous year. Reported growth is calculated at current exchange rates and at actual perimeter
2. Gross Merchandise Value is defined as retail value of sales of all the Online Flagship Stores, including the JV online store sales, to final customers, net of returns and customer discounts. Set-up, design and maintenance fees for the Online Flagship Stores, accounted for within ‚Rest of the World and Not Country Related‛, are excluded
3. Gross merchandise value organic growth is calculated at constant exchange rates and at comparable perimeter by including gross merchandise value of all Online Flagship Stores active at the end of each period, which were also active at the beginning of the same period of the previous year. Reported growth is calculated at current exchange rates and at actual perimeter.
39.1%
9.7%
+16.8%
+14.7%
+19.5%
€435.4m €389.9m
+16.8%
+11.7%
+14.7%
+7.2%
3Q 2015 Pro-Forma
3Q 2016 vs 3Q 2015 Pro-Forma
+16.8%
@constant FX
+25.5%
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
Organic1
+19.1%
+19.0%
Organic3
+25.7%
P A G E N U M B E R
(€m )
Italy 75.1 87.4 16.3% 16.4% 26.8 29.9 11.4% 11.6%
UK 184.3 191.7 4.0% 14.8% 59.7 56.5 (5.4%) 13.5%
Rest of Europe 317.5 353.7 11.4% 14.0% 108.9 115.3 5.9% 7.7%
North America 352.1 401.0 13.9% 14.2% 113.7 132.9 16.9% 17.8%
APAC 175.8 214.2 21.9% 23.8% 57.3 76.8 33.9% 36.8%
Rest of the World + NCR 76.9 84.5 9.8% 18.8% 23.5 24.1 2.5% 19.0%
Group Net Revenues 1,181.7 1,332.5 12.8% 16.1% 389.9 435.4 11.7% 16.8%
1. Not Country Related
29.8%
15.6% 14.9%
6.5%
26.9%
6.4%
9M 2015 9M 2016
30.1%
14.4% 16.1%
6.3% 6.6%
26.5%
3Q 2015
14.7%
6.0%
15.3%
29.2%
6.9%
27.9%
17.6%
5.5%
13.0%
30.5%
6.9%
3Q 2016
26.5%
Net Revenue Performance
Net Revenue Breakdown
Italy UK Rest of Europe APAC North America Rest of the World and NCR1
9M 2015 Pro-Forma
9M 2016 % Growth % Growth
Constant FX 3Q 2015
Pro-Forma 3Q 2016 % Growth
% Growth Constant FX
1
P A G E N U M B E R
8.6 9.0
9.4 10.1
8.0 8.4
25.9 27.5
9M 2016 9M 2015 Pro-Forma Restated3
9M 2016 9M 2015 Sep 2015 Sep 2016
9M 2015 Pro-Forma
354
331
353
324
3Q 2016 3Q 2015
7.7 8.7
10.0 10.0
7.8 8.0
25.5 26.8
+6.0%
+5.8%
+4.4%
+5.0%
+2.7%
+14.1%
-6.3% -8.1% +20.3%
3Q 2015 Pro-Forma Restated3
3Q 2016
2,316
2,785
3Q 2016 3Q 2015 Pro-Forma 9M 2016
5,019
5,939
1,695 1,994
+18.3% +17.7%
Monthly Unique Visitors (m)2 # Orders (‘000) - Group
Average Order Value (€) - Group Active Customers4 (‘000) - Group5
+7.6% -0.2%
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
@constant FX
-3.5%
@constant FX
-4.0%
1. Key performance indicators do not include the Joint Venture with Kering and the jimmychoo.com online flagship store 2. Source: Adobe Analytics for NET-A-PORTER and MR PORTER in the first nine months of 2016 and THE OUTNET; Adobe Analytics and Flurry for NET-A-PORTER and MR PORTER in the first nine months of 2015, Google Analytics for YOOX, THECORNER, SHOESCRIBE and the Online Flagship
Stores "Powered by YOOX NET-A-PORTER GROUP" 3. 9M 2015 monthly unique visitors (‚MUV‛) have been restated to include the MUV from native apps, previously not tracked, for NET-A-PORTER, MR PORTER and THE OUTNET as well as to account for the change in data source used for YOOX MUV starting from November 2015. Specifically,
YOOX MUV for both 9M 2015 and 9M 2016 are now sourced from Google Analytics, instead of Google Analytics for the website and SiteCatalyst for the mobile site as previously used 4. Active Customer is defined as a customer who placed at least one order in the 12 preceding months. The figure reported is calculated as the sum of the Active Customers of each online store for the reporting period 5. Includes Active Customers of the Online Flagship Stores ‚Powered by YOOX NET-A-PORTER GROUP‛
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
P A G E N U M B E R
A Global company with Anglo-Italian roots
A unique ecosystem covering all luxury customer segments globally
The global partner of choice of the world’s leading luxury brands for all online distribution channels
P A G E N U M B E R
2009
Orders processed
Net Revenues2
Employees
Monthly Unique Visitors
Enterprise Value1
Customers
€226m
€137m
287
0.5m
6m
1 every 27s
2015
€2.5b
€1.7b
3,901
2.5m
27m
Orders 1m 7m
1 every 4s
Countries reached 67 >180
1. Fully diluted Enterprise Value, calculated as of 3 December 2009 and 5 July 2016, respectively. Net Financial position for 2015 EV calculated as of 31 March 2016 and adjusted for €100m capital increase. 2. Net Revenues refer to last 12 months as of 30 September 2009 for YOOX and last 12 months as of 31 March 2016 for YNAP. For all the definitions (indicated with " * "), please refer to slide 172
P A G E N U M B E R
YNAP Pro-forma Net Revenues and CAGR
2009 2015
+34%
+29%
€1.7bn
YNAP 2015 Market Share4
YNAP3 AND MARKET HISTORICAL PERFORMANCE
Online Personal Luxury Goods Market CAGR
€16.8bn
3. Combined YOOX GROUP and the NET-A-PORTER GROUP Net Revenue CAGR for 2009 - 2015 Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
2015 2020
YNAP
YNAP AND MARKET GROWTH EXPECTATIONS
+15%
YNAP EXPECTED TO CONTINUE GAINING MARKET SHARE AND MAINTAIN LEADERSHIP POSITION
Mobile penetration
Big Data
Technology Innovation
Omni-channel
Millennials
YNAP Pro-forma Net Revenues and CAGR Online Personal Luxury Goods Market CAGR5
€1.7bn
DRIVERS OF FUTURE MARKET GROWTH
YNAP 2020 Market Share
~€34bn
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
Creative Content to delight our customers
Personalised customer journey powered by Smart Data
Hi Federico, it seems to be quite cold outside, maybe you need a nice scarf! How about this?
Customer-centric approach, focused on Mobile usage
4 KEY PRINCIPLES
Impeccable Service as part of the experience
P A G E N U M B E R
One firm operating 3 distinct business lines
4 Brands catering to their respective customer bases through their distinctive identities and value propositions
One shared global platform servicing all Brands, empowering innovation while fully unlocking synergies
Common Corporate Functions to share and deploy best practices and encourage cross-fertilisation
MULTI-BRAND IN-SEASON MULTI-BRAND OFF-SEASON ONLINE FLAGSHIP STORES
THE PLATFORM (Technology and R&D, Operations and Private Label Sourcing)
CORPORATE FUNCTIONS
JVCo with Kering
and many more …
‚POWERED BY YOOX NET-A-PORTER GROUP‛
P A G E N U M B E R
…With a culture built on common values of customer centricity & innovation,
and encouraging differentiation at brand-level
… Instilling a spirit of togetherness by fostering
collaboration, learning and curiosity
... Made of 1 dream team combining the best talent of NET-A-PORTER, YOOX, and the industry
… Which values and promotes diversity by implementing
family-friendly and female-empowering initiatives
… With the goal of being the world’s most
sought-after employer in online fashion
P A G E N U M B E R
0%
40%
80%
NET-A-PORTER YOOX
0
2,000
4,000
NET-A-PORTER YOOX0
2
4
NET-A-PORTER YOOX
Desktop Tablet Smartphone
1% 8%
20% 30%
43%
55% 59%
2010 2011 2012 2013 2014 2015 Q1 2016
Mobile Visits
Smartphone sales growth outpaced other devices
Within Mobile, Native Apps are gaining share
Increased traffic on mobile devices has been
the key driver behind mobile sales growth
More Loyal… …More Engaged… …Spend More!!
Note: Net Revenues and traffic split by device include data from all 3 business lines. Customer data (Retention rate, orders per annum, annual spend) refers to Net-A-Porter and YOOX only. Mobile customer defined as a customer who placed at least 1 order on a mobile device in previous 12 months. This customer could be either a mobile-only customer or a cross-channel customer.
Mobile Customer Desktop-Only Customer
41% 31% 25% 17% 7% 1% 37%
Retention Rate Orders Per Annum Annual Spend (€)
Mobile sales penetration
YNAP Net Revenues and Traffic Split by Device
YNAP MOBILE CUSTOMERS PROVING THE MOST VALUABLE (2015)
P A G E N U M B E R
95% of luxury consumers are already mobile equipped
Mobile will be at the heart of our strategy, with native apps as the strongest tool for conversion, engagement and retention
Conversion Driver
Physical and Digital Store Bridge
Personalization Enabler
Media Gateway
Constant Engagement Tool
Service Delivery Channel
P A G E N U M B E R
Converge multiple customer data sources, both internal (across all of our online stores) and external
Refine this data and develop a holistic view of our customer; that is smart and actionable
Use this smart view to inform Marketing and Retailing strategies to unlock value from:
TWO OF OUR BIGGEST ASSETS
UNMATCHED BASE OF 2.5 MILLION HIGH-VALUE CUSTOMERS GLOBALLY
Personalisation across all customer touchpoints
Extending insights into our luxury ecosystem to our Brand Partners
THE WORLD’S BIGGEST LUXURY FASHION CLOSET
‚Omni-stock‛ Program: Develop intelligent stock allocation and
fulfilment decisions across our global logistics network to maximise return on inventory
P A G E N U M B E R
Rest of Europe 48.8%
MULTI-BRAND IN-SEASON MULTI-BRAND OFF-SEASON ONLINE FLAGSHIP STORES
Strong growth in High Net Worth customer base
International expansion
Product to cement positioning and launch of fine jewellery & watches
Content to drive acquisition and engagement
Unparalleled one-to-one service to increase retention
Strong increase in customer base focused on higher-value customers
Marketing investments to drive YOOX brand awareness
THE OUTNET international expansion
Growth in product offering, preserving the best quality
Private labels to complement
current offer
Strong organic growth from more focused portfolio of higher-potential existing partnerships
New select business developments with promising online potential
Business model evolution for brands to seize the omni-channel opportunity
New suite of luxury value-added services to complement our offer
….all empowered by mobile
‚POWERED BY YOOX NET-A-PORTER GROUP‛
JVCo with Kering
and many more …
P A G E N U M B E R
United States – the world’s biggest online luxury market –
to remain our no. 1 country
Expand our presence in Japan and China to harness their full potential
Break into the Middle East with a full in-country presence that
completes our coverage of all relevant luxury markets
Strong focus on internationalisation while maintaining our leadership position in the US
Increase focus on most promising European opportunities (incl. Russia)
Extend outreach in large e-commerce markets where YNAP is underpenetrated
(Germany, France)
P A G E N U M B E R
THE PLATFORM
Converging while enhancing
The world’s biggest fashion closet
seamlessly accessible from anywhere
SHARED SCALABLE
Investing now, leveraging much
beyond 2020
~340,000 SQM by 2019 able to
accommodate sales growth of over €5bn
Setting the standard for service in luxury
fashion
Premier same-day delivery in NY, London,
Milan, Dubai, Shanghai, Tokyo
TAILORED FOR LUXURY
INNOVATIVE
Empowering innovation leveraging
smart data
Knowing our prospective ~6M
customers one-by-one
[…]
P A G E N U M B E R
Uniquely positioned at the high-end of the fast-growing online fashion market
Talented, experienced and forward-looking management team
The independent global partner of choice of the world’s leading luxury brands
A proven and highly resilient business model: The world’s most geographically diversified fashion e-tailer
Broad and well-balanced offer across customer profiles and price points through 3 business lines
One Scalable Global Platform tailored to luxury fashion
Successful track record of strong profitable growth and industry-leading innovation
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
2. Average 2015 exchange rates For all the definitions (indicated with " * "), please refer to slide 172
Sensitivity to average GBP/EUR in H2 2016
FY2016 Group Net Revenue Growth2
Adjusted EBITDA*
0.80 0.85
-1.5% -2.5%
~nil ~nil
Comments
Well-balanced GBP-denominated revenues and costs
Severe UK Flat y-o-y
Europe Mid Teens
(2 - 3%)
Sensitivity to UK & Europe Slowdown Scenario in H2 2016
Adjusted EBITDA margin
+10bps +20bps
Moderate UK Single Digit
Europe High Teens
(1 - 1.5%)
Impact on
FY2016 Group Net Revenue Growth2
Adjusted EBITDA margin
-20bps -40bps
Impact on
CURRENCY IMPACT
SLOWDOWN IN DEMAND
P A G E N U M B E R
5-Year Plan already accounts for a declining share of the UK contribution to Group Net
Revenues, moving from 15.8% in FY2015 to ~12.0% in FY2020, to reflect already relatively
high penetration of online luxury goods and stage of e-commerce maturity
Conservative view on UK growth already factored into plan
assumptions
Whilst Brexit will not automatically lead to an introduction of customs between the UK and
the EU, the potential risk has been taken into account starting from mid 2018
By then, the new Omni-stock logistics set-up will be in place and will significantly mitigate
any potential additional customs burden. Its impact would be limited to ~10% of Group
COGS by 2020 under the theoretical assumption that no price adjustment is made to
mitigate the effect
No meaningful impact from potential
introduction of custom duties
Impact expected to be neutral on Group’s profitability due to balanced GBP-denominated
revenues and costs
Depreciation of GBP/EUR FX
P A G E N U M B E R
Category 1 Category 2
Forecasts provided at FY2015 average exchange rates
Annual Net Revenue (NR) growth progression to reflect revenue synergy ramp-up
YNAP Pro-forma Net Revenues and CAGR Online Personal Luxury Goods Market CAGR3
€1.7bn
YNAP 2020 Market Share
YNAP AND MARKET GROWTH EXPECTATIONS
17 - 20%
€3.7 - 4.1bn
15%
2020 2015
YNAP 2015 Market Share
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
FREE CASH FLOW GENERATION
Note: 2015 pro-forma financials, 2020 forecasts.
PROFITABILITY ENHANCEMENT
2015A 2020E
8.0%
11 - 13%
Adjusted EBITDA* Margin as % of NR
2020 2015
2015A 2020E
5.0% 4 - 5%
Capital Expenditure as % of NR
2020 2015
Position within the range dependent upon sales growth
Margin enhancement to reflect P&L synergy ramp-up
Comments
2014 2015 2020
Ordinary Net Working Capital* as % of NR
5.8% 5 - 6% 6.6%
Dec 2014 Dec 2015 Dec 2020
Capex as % of NR to peak in 2016 and 2017 and expected to decrease to 4-5% of Net Revenues by 2020
Optimised inventory management driven by Omni-stock programme
Forecasts provided at FY2015 average exchange rates
P A G E N U M B E R
53.7% 35.8%
10.5%
2015 2020
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
Mix to remain broadly stable
Multi-brand In-Season still the largest contributor
Multi-brand Off-Season likely to outpace the Group’s
average growth in periods of uncertainty
Share of the Online Flagship Stores to slightly diminish as
a result of partial adoption of new partnership model,
entailing YNAP to book its fee as opposed to the entire
transaction value
6.7%
15.8%
26.4% 30.2
%
14.6%
6.3%
Italy UK Rest of Europe
APAC North America Rest of the World and NCR*
2020 2015
North America to remain no. 1 country
Rest of Europe to maintain its share
APAC and Rest of the World gaining share over the UK
– Over-indexed growth in Mainland China, Singapore,
South Korea and Taiwan
– Rest of the World growth fuelled by the Middle East
BY BUSINESS LINE
BY GEOGRAPHY
15.8%
26.4% 30.2%
14.6%
6.3% 6.7%
P A G E N U M B E R
AdjustedEBITDA
GrossMargin
Operating Leverage AdjustedEBITDA
1 - 1.5%
8.0%
2015-2020 Adjusted EBITDA Margin
11 - 13% 2 - 3.5%
Evolution of Adjusted EBITDA* margin factors in synergies
2015 2020
P A G E N U M B E R
2015 - 2020 GROSS MARGIN*
2014A 2015A 2020E
39.2% 39.5%
40.5 - 41.0%
Omni-stock programme enabling lower average markdown and higher sell-through for Multi-brand In-Season and The Outnet
Improved buying terms across Multi-brand In-Season and Off-Season upon volume increase
Growing share of higher-margin private label
Further pricing sophistication yielding increased margins
INITIATIVES DRIVING GROSS MARGIN
2014 2015 2020
P A G E N U M B E R
Lower handling costs as a result of greater stock allocation in Italy as opposed to New York and London
Increased efficiency of customer care
2014A 2015A 2020E
2014A 2015A 2020E
2014A 2015A 2020E
Efficiency in personnel costs and vendor terms reinvested into marketing spend
Operating leverage on fixed costs
9.2% 10.0%
11.9% 12.2%
9.8% 9.3%
2014 2015 2020
FULFILMENT AS % OF NR
Comments
2014 2015 2020
2014 2015 2020
SALES & MARKETING AS
% OF NR
G&A + OTHER INCOME &
EXPENSES AS % OF NR
P A G E N U M B E R
0%
2%
4%
6%
8%
10%
0
20
40
60
80
100
120
140
160
180
200
2015 2016 2017 2018 2019 2020
Capex /
NR Ratio (%)
€84m
~€150m
€m
Free Cash Flow
MAIN INITIATIVES
Technology integration investments and significant upgrades
Expansion of global logistics network to accommodate volume growth and implement Omni-stock programme
0%
2%
4%
6%
8%
10%
0
50
100
150
200
250
2015 2016 2017 2018 2019 2020
NWC /
NR Ratio (%)
€96m
€m
Ordinary Net Working Capital* and % of NR Capital Expenditure and % of NR
-100
-50
0
50
100
150
200
250
2015 2016 2017 2018 2019 2020
€5m
5-6%
NET WORKING CAPITAL* CAPEX
Improvement mainly driven by inventory: better sell-through thanks to Omni-stock programme, increased share of private label, extended off-season buying opportunities throughout the year and shorter lead times due to in-bound process improvement
€m
4-5%
5.8% 5.0%
P A G E N U M B E R
ANNUAL RUN-RATE SYNERGIES (2018)
EBITDA + CAPEX SAVINGS: €85M
CUMULATED ONE-OFF COSTS (2015-2018)
OPEX + CAPEX: €95M
Expected synergies mainly arising from P&L benefits
One-off capital expenditure mainly concentrated in FY2016 - FY2017
HIGHLIGHTS
OPEX Capital Expenditure Capital Expenditure Savings EBITDA
P A G E N U M B E R
2018 EBITDA + CAPEX SAVING SPLIT BY AREAS
45 Synergies in 6 Different Areas
Retail Additional sales, improved full price sell-through and retail
margin across THE NET-A-PORTER GROUP’s online stores thanks to development of a shared virtual global inventory across markets and storefronts (‚Global Inventory‛)
Improved product sourcing conditions by combining yoox.com and THE OUTNET.COM buying efforts
Operations Lower delivery and warehousing costs thanks to optimised
allocation of stock across distribution centres (DCs) closer to customers
Lower delivery and credit card costs thanks to greater scale
Brand Relations Cross selling mono-brand offer and up selling
opportunities leveraging THE NET-A-PORTER GROUP’s editorial and marketing capabilities
Corporate and Technology Reduced hiring rate in overlapping functions CAPEX savings thanks to convergence onto one shared
technology platform
Marketing and Content Savings on marketing spend due to optimisation of multi-
brand portfolio (see slide 25) Up and cross-selling opportunities across customer bases
Retail
Operations
Corporate
Technology
Marketing and Content
Brand Relations
TOP SYNERGY CONTRIBUTORS
P A G E N U M B E R
2016 2017 2018
100%
~40%
~15 % - 20%
GROSS EBITDA SYNERGIES
EBITDA SYNERGY BREAKDOWN BY TYPE
2016 2017 2018
HIGHLIGHTS
P&L synergies (net
of one-off OPEX)
to be positive as
soon as 2016
Synergy increase
from 2017 to 2018
mainly due to
implementation of
Global Inventory
set-up, driving
uplift in revenue
synergies
Costs Revenue
P A G E N U M B E R
Confirmed 2016 synergy target:
– ~15% - 20% of the total run-rate synergies (~€75m in gross EBITDA by 2018)1
– ~€7.5m of one-off operating expenses, mainly related to G&A
Better terms achieved for THE OUTNET.COM already for FW 2016 by coordinating buying with YOOX.COM
Retail margin gains from more effective management of MR PORTER.COM unsold stock through YOOX.COM
Already secured better buying terms for a number of top brands on Multi-brand In-season
Lower freight costs to be effective in 2H 2016 following completion of global courier renegotiation
Lower credit card and packaging costs as a result of successful renegotiation, beginning January and July 2016, respectively
Set-up of chloe.com and dunhill.com. Awarded contract to develop online store for Isabel Marant, one of NET-A-
PORTER.COM’s top brands - launching in 2017
New leading brands debuting on NET-A-PORTER.COM and MR PORTER.COM, leveraging YOOX GROUP’s relationships:
Moncler, Brunello Cucinelli, Ermenegildo Zegna and Pomellato
Consolidation of New York and HK offices in February 2016 and end of June 2016, respectively
Reduced hiring rate for overlapping functions
Savings from centralized procurement process and tool facilitating the consolidation and negotiation of RFQs and supplier
contracts (Travel, Mobile, etc.) based on increased volumes
Optimisation and renegotiation of top digital marketing contracts (SEM, display advertising and affiliation)
2016 2017 2018
GROSS EBITDA SYNERGIES PHASING (November 2015 Update)
100% ~40%
~15 % - 20%
…THE REMAINDER ON TRACK TO BE DELIVERED
MAJORITY OF 2016 SYNERGIES ALREADY SECURED…
RETAIL
Iris & Ink debuting on YOOX.COM in September 2016
New OMS to be rolled out for former YOOX GROUP, first building block of one shared technology platform
Consolidation of HK DC in October 2016
Development of Christmas editorial projects for some Online Flagship Stores by NET-A-PORTER’s creative team
OPERATIONS
BRAND RELATIONS
CORPORATE
MARKETING
BRAND RELATIONS
OPERATIONS
RETAIL
1. Total run-rate of €85m in 2018, of which ~€75m EBITDA and ~€10m Capex savings
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
TECHNOLOGY
OPERATIONS
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
IN-SEASON + OFS OFF-SEASON
API LAYER
CORE E-COMMERCE PLATFORM
PRODUCT INFORMATION MANAGEMENT
ORDER MANAGEMENT SYSTEM
BACK-END SYSTEMS (ERP, WMS)
B2B and B2C with scale in mind
Integrated ecosystem
Data driven
Differentiated front end while shared back end
Home grown system
Primarily B2C focused
Closed loop ecosystem
Content driven
Channelised systems
Home grown system
INFRASTRUCTURE
FR
ON
T E
ND
DA
TA
CORE E-COMMERCE
PLATFORM
PRODUCT INFORMATION MANAGEMENT
ORDER MANAGEMENT SYSTEM
BACK-END SYSTEMS (ERP, WMS)
INFRASTRUCTURE F
RO
NT
EN
D
DA
TA
NET-A-PORTER MR PORTER THE OUTNET
CORE E-COMMERCE
PLATFORM
CORE E-COMMERCE
PLATFORM
For all the definitions (indicated with " * "), please refer to slide 172
P A G E N U M B E R
Efficiency driven
Highly localised
‚Hub and Spoke‛ design best suited to drive retail efficiency
Vast majority of stock centralised in Italy hub
Strong focus on inventory efficiency
Emphasis on innovation
‚Luxury-quality‛ driven
Segregated inventory model
Each warehouse hosts stock to meet expected local demand
Focus on speed of delivery
Emphasis on innovation
HK
CN
JP US
HK
US
UK
Just-In-Time Intercompany Flows
Last-Mile delivery
P A G E N U M B E R
PILLARS OF OUR TECHNO-LOGISTICS PLATFORM EVOLUTION STRATEGY
Innovation
Shape the future of luxury online
Omni-Channel Enabled
Enable fully integrated omni-channel solutions for luxury brands
Scalable Differentiation
Deliver highly differentiated brand experiences through a shared and scalable platform
Operational Excellence
Enhance quality for the customer while improving operational efficiency
Data-driven luxury retail and inventory management
Combine data-rich customer interactions and smart globally integrated operations
to maximise inventory ROI
P A G E N U M B E R
GLOBAL VISIBILITY
OF INVENTORY
HUB AND SPOKE LOGISTICS
MODEL
NETWORK SPECIALISATION
BY DIVISION
Increased sales
Lower cost of goods
Reduced ‚out of stock‛ issues
Higher full price sell-through
DATA-DRIVEN & FLEXIBLE ALLOCATION
OF INVENTORY
Improved operational efficiency
Improved geographical scalability
Faster delivery times
Natural hedge of inventory risk
IN-SEASON OFF-SEASON
MAIN ADVANTAGES
P A G E N U M B E R
In-season
Off-season
Shared across In-Season & Off-Season
B2B Intercompany flows / JIT and Replenishment
B2C / last mile flows
IN-SEASON
Opening of new dedicated hub in Italy
High quality, higher cost operations
Lower degree of inventory centralisation, threshold-based stock levels held in local distribution centres to guarantee same day and next day delivery
Flexible daily replenishment flows (threshold based) and Just-in-Time flows
Order flows optimised for faster service levels
OFF-SEASON
Interporto (Bologna) continues as the Off-Season hub
Higher efficiency operations (still differentiated between YOOX and THE OUTNET)
Higher degree of inventory centralisation
Just-in-Time flows connecting hub and spoke upon customer placing an order
Order flows optimised to balance speed of delivery and related costs
Distribution Centres in peripheral markets shared across In-Season & Off-Season
P A G E N U M B E R
Provides global visibility over the Group’s largest
inventory pool held in the central hub
A great tool to weather local macroeconomic
turbulences or slowdown in demand
FULLY FLEXIBLE STOCK ALLOCATION
Regardless of any Brexit impact on trade agreements between Europe and the UK, the ability to allocate
stock in both Europe and the UK to serve the local UK demand will minimise the country-specific risk
By the time potential changes are in effect, the Omni-stock programme will be fully in place
Integrated system connecting warehouses globally
allowing maximum flexibility of stock allocation
Stock can be freely allocated between
central hub and local DCs each season
Inventory held centrally can be instantly
‘’switched on and off’’ in each country
BREXIT RISK MINIMISATION
GLOBAL INVENTORY VISIBILITY
P A G E N U M B E R
UK
Italy
UK
CURRENT LOGISTICS SET-UP OMNI-STOCK PROGRAMME
Inventory serving UK and EU located in London
Duties levied upon:
− Products imported in the UK
− Orders shipped out of the UK
Inventory serving EU located in Italy rather than in the UK
Inventory serving the UK partially located in Italy and partially in the UK
Duties levied only on products shipped inter-company from Italy to the UK
Just-In-Time Intercompany Flows
Outbound Flows
Inbound Flows
Custom Duties
When Omni-stock programme fully in place, custom duties reduction vs. ‚current set-up‛ scenario of up to 75%
P A G E N U M B E R
THE OUTNET.COM YOOX.COM MR PORTER.COM NET-A-PORTER.COM ONLINE
FLAGSHIP STORES
TIMELINE OF KEY MILESTONES
API LAYER
CORE E-COMMERCE PLATFORM
PRODUCT INFORMATION MANAGEMENT
ORDER MANAGEMENT SYSTEM
BACK-END SYSTEMS (ERP, WMS)
INFRASTRUCTURE
SM
AR
T D
AT
A
1. Roll-out of new Order Management System on former YOOX GROUP’s online stores Q4 2016
2. Migration of former THE NET-A-PORTER GROUP onto YOOX GROUP’s ERP Q1 2017
3. First Online Flagship Store to launch on new core e-commerce platform Q3 2017
4. Convergence and Omni-stock programme completed for Off-Season H2 2017
5. Roll-out of new OMS on former NET-A-PORTER GROUP’s online stores, convergence and Omni-stock
programme completed for In-Season with opening of new In-Season hub
2018
FR
ON
T E
ND
In-Season
Off-Season
Shared across In-Season & Off-Season
B2B Intercompany flows / JIT and Replenishment
B2C / last-mile flows
P A G E N U M B E R
5%
74%
21% TECHNOLOGY
Technology Capex as a % of Net Revenues to peak in 2016 and 2017 due to
concentration of convergence activities. Set to stabilise in the region of ~3% of Net
Revenues by 2020
OPERATIONS
Capex to peak in 2017 and 2018, driven by capacity expansion in Italy and automation
investments. Assuming opening of a new automated facility in the US for the Multi-
brand Off-Season business line in 2019, with investments starting in 2018
Cumulative
5-year Capex Split
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0%
2000%
4000%
6000%
8000%
10000%
12000%
14000%
16000%
18000%
20000%
2015 2016 2017 2018 2019 2020
OTHER OPERATIONS TECHNOLOGY
7.0
6.0
5.0
4.0
3.0
2.0
1.0
Capex / NR Ratio (%)
€84m
~€150m
4-5%
M€
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
TECHNOLOGY
OPERATIONS
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
MISSION
THE OUTNET YOOX MR.PORTER NET-A-PORTER OFS
API LAYER
CORE E-COMMERCE PLATFORM
PRODUCT INFORMATION MANAGEMENT
ORDER MANAGEMENT SYSTEM
BACK-END SYSTEMS (ERP, Warehouse Management System)
INFRASTRUCTURE
SM
AR
T D
AT
A
FR
ON
T E
ND
INNOVATION
MOBILE CENTRICITY
DIFFERENTIATION
RETAIL EXCELLENCE
EASE OF INTEGRATION
STABILITY, PERFORMANCE AND SCALABILITY
Customers, Brand
Partners, Content
Back-end Operations
Generating highly differentiated and innovative brand
and customer experiences enabled by one shared, scalable platform
P A G E N U M B E R
Expedite and facilitate the post-merger system integration process,
minimising costs and execution risk
Channel in-house technology resources towards developing differentiated solutions, and personalised
experiences tailor made for online luxury
Integrate two of IBM’s best-in-class software:
Order Management System (Sterling)
E-commerce suite (Websphere)
Ease of integration with brands’ retail stores and distribution centres to upscale omni-channel offering
Speed up full deployment of Omni-stock programme across the Group
Gaining privileged access to new technology trends as they emerge
(IBM Innovation Lab, Fashion & Luxury Innovation Committee, etc.)
THE RATIONALE THE PROJECT
THE OUTCOMES
P A G E N U M B E R
Constant focus on innovating and experimenting to redefine the way luxury fashion is going to be experienced online
globally in the future, strengthening YNAP’s Intellectual Property
Scanning the technology horizon for the next relevant innovations in order to
deliver our mission to customers and brands globally
INTERNET
OF THINGS
…
IN-CONTEXT
DATA-DRIVEN
PERSONALISATION
ADVANCED
MOBILE INNOVATIONS
SOCIAL
INTEGRATIONS
ARTIFICIAL
INTELLIGENCE
I N N O V A T I O N
P A G E N U M B E R
Fully responsive web design for all devices, native apps for small screens (Feature-rich)
Constant exploration of new devices and operating systems (current focus on iOS & Android)
DEVICES
Shared native mobile development framework, which enables:
– Fast deployment of new native apps
– Introduction of new services for existing apps PLA
TF
OR
M
YN
AP
AP
I
SCALABILITY & TIME-TO-MARKET
Extension of our ecosystem to enrich the customer experience
– Locally-relevant products, content and services worldwide
EXTENDED ECOSYSTEM
Xiaomi Facebook WhatsApp VKontakte
Twitter Instagram Weibo WeChat
Enabling YNAP to be the global reference point for converging mobile and the luxury experience
Full support for brand partners in leveraging their apps to provide omni-channel experience
Personalised front-end experience across devices, brands and countries
Geo-localisation capabilities to provide in-context messages and recommendations
OMNI-CHANNEL AND PERSONALISATION
P A G E N U M B E R
Enhancing the tools that will enable the next wave of online luxury retailing - where smart data meets editorial content and fashion sense
Use advanced predictive algorithms to optimise stock allocation and maximise inventory value
Enhance order management capabilities to inform fulfilment choices, optimising service, margins and costs (e.g. pre-order, order splitting and consolidation, etc.)
Develop ‚open network‛ able to integrate with third party DCs and stores to enable omni-channel functionalities and evolving business models
YNAP
BRANDS
PREMIER
ORDER & INVENTORY MANAGEMENT
Deploy staged-approach to deliver personalised experiences for our luxury fashion customers:
1. Personalise product, pricing and promotions
2. Develop a single view of the luxury customer
3. Combine data-driven customer profiling algorithms with fashion expertise
COGNITIVE COMMERCE
Enhance content management systems to seamlessly blend content & commerce
Leverage smart data insights to provide personalised content
Deploy content across devices to allow for omni-channel content strategies
Draw on multi-tenant platform to deliver front-end differentiation
CONTENT MANAGEMENT
Single view of product information which allows for:
– Catalogue visibility across online stores and geographies
– Greater process efficiency and product data consistency
– Enriching and integrating our product data with external third parties (e.g. our partner brands)
PRODUCT INFORMATION MANAGEMENT
P A G E N U M B E R
Cloud-focused strategy designed to:
– Improve scalability and cost efficiency
– Allow for better accessibility and performance in markets across the world
CLOUD
SECURITY
Uniform development process coupled with rigorous security testing
Constant monitoring of cyber security trends allowing for proactive risk mitigation and
effective defence
Service Oriented Architecture (SOA) facilitates design and maintenance of partner integrations:
– Key enabler of omni-channel
– Able to cater to evolving business needs
– Decreases Total Cost of Ownership and increases efficiency
ENTERPRISE INTEGRATION / BACK OFFICE
MULTI-TENANT APPROACH
‚Build once, use many‛ - One platform serving multiple tenants, preserving differentiation
– Increases scalability
– Reduces time-to-market
– Decreases Total Cost of Ownership
CUSTOMER FACING INTEGRATION & APIs
Externalised internal digital assets and services in form of APIs:
– E.g. Exposing our shipping services and brands’ digital content to work with 3rd
party channels
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
TECHNOLOGY
OPERATIONS
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
Fulfilment Deliveries Customer
Care Digital
Production Inbound Logistics
P A G E N U M B E R
16,000 SQM
33,000 SQM
147,000 SQM
17,600 SQM
14,000 SQM
3,000 SQM 2,300 SQM
1 order processed every 4 seconds
7 million orders shipped in 2015 in 180 countries
8.7 million items stocked worldwide in June 2016
4.4 million pictures shot in 2015
99 photo studios at 30 June 2016 and 84
photographers
25 countries served with same or next-day delivery
Proprietary fleet of 55 vans for Premier Delivery
~270,000 orders dispatched through Premier
Delivery in London, Manhattan, Connecticut and
Hong Kong in 2015
~250,000 SQM in warehouse capacity
at 30 June 2016
Butler service in China Nominated-day delivery in Japan and UK
Pick-up and drop-off points in continental Europe
Market-specific delivery options
Distribution Centre
Photo studios
Automated facilities
Premier fleet of proprietary vans for same day delivery
P A G E N U M B E R
TO SUPPORT A
> €5BN BUSINESS
16,000 SQM 27,000 SQM
205,000 SQM
17,600 SQM
14,100 SQM
6,200 SQM 4,800 SQM
~340,000 SQM
BY 2020
Q4 2016 Consolidation
of HK warehouse
H1 2017 New studios at
Interporto & capacity
expansion
H2 2017 The Outnet starts to be
fulfilled from Interporto
(for Europe/APAC)
The Outnet starts to be
served from Off-Season
US distribution centre
Interporto capacity
expansion continues
Opening
of distribution
centre in Dubai
Upgrade of APAC’s
distribution centre
network
2019 Opening of
new (replacement)
Off-Season warehouse
in the US
Distribution Centre
Photo studios
Automated facilities
Premier fleet of proprietary vans for same-day delivery
2018 Opening of In-Season
hub, achieving key
Omni-stock milestone
P A G E N U M B E R
Marrying high quality operations with technological innovation
Latest technology in order storage & retrieval systems
Full deployment of RFiD tagging
46,000 SQM
~€30 million automation capex throughout 2016, 2017, 2018
H1 2017
H1 2016
H1 2018
Construction started
Building construction completed
Fully operational
Proximity to our biggest suppliers
Strategic location close to our customers,
at the heart of continental Europe
Allow for Premier delivery in Milan
Significantly more efficient cost structure
Advantages of Italy:
Natural hedge against Brexit
P A G E N U M B E R
High Average Order Value (>€600) and high product depth (>50) command and allows for:
Over 250 highly skilled photographers, stylists, size and fit specialists, photo retouchers, videographers and editors
Digital Production facilities designed for In-Season business to be leveraged for Online Flagship Stores
High craftmanship in photo shooting
and retouching
Highly curated styling
Videos
Rich editors’ notes
Detailed size and fit information
P A G E N U M B E R
Wide assortment, shallow depth, lower AOV, high volumes command for high degree of automation in the photo
shooting process
Use of internally engineered automated equipment coupled with manual photo shooting to allow for differentiation
based on item value/product depth
1 picture every 3 seconds, 4 million shots per year
P A G E N U M B E R
HIGHLY CUSTOMISED PACKAGING GUIDELINES AND PERSONALISED SERVICES FOR IN-SEASON
High item value for In-Season and most Online Flagship
Stores allow for more sophisticated, yet complex
packaging guidelines, implying lower unit throughput
Tailored packaging guidelines defined with our mono-
brand partners to fully reflect their brand identities
Outstanding personalised packaging for a fully bespoke
customer experience
HIGH QUALITY PACKAGING FOR OFF-SEASON COUPLED WITH WORLD-CLASS EFFICIENCY PROCESSES
Off-Season online stores entail a more efficient packing
process allowing management of peaks in fulfilment of
up to 75,000 orders per day with a productivity of up to
70 orders each hour per single operator
I am so impressed by the service that I received. I had made this purchase as a surprise birthday present for
my husband and I am sure that he will be very happy!
The packaging is so beautiful. Thank you!!
Shopping on your site is a pleasure. I also appreciate
the care you take in packing the goods for delivery.
Thank you for your service!
P A G E N U M B E R
Today sales generated by customer care contacts
outweigh customer care costs
Extend NET-A-PORTER Team’s proven cross and upselling capabilities
to YOOX and the Online Flagship Stores
Empower customer care representatives with up and cross-selling tools
integrated with a rich and data-driven single view of the customer
CROSS FERTILISE THE TWO CUSTOMER
CARE CULTURES
Increase no. of languages
Leverage new channels for real-time interactions
(livechats, in-app messagging)
Differentiate service levels based on customer profiles
Complement world class in-house team with select top notch
outsourced capabilities
Package customer care value added services
for the Online Flagship Stores
One team at the Group level, differentiated by brand
Mixed in-house/outsourced model leveraging the best of the two practices
...
FURTHER ENHANCING
QUALITY WHILE DRIVING
EFFICIENCY
CONTINUE TO BE SELF-FINANCED
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
A history fuelled by innovation, service and brand building
1. See-through stake based on ordinary capital For all the definitions (indicated with " * "), please refer to slide 172
Richemont’s
stake increase
to 93%¹
Richemont
acquires
25% of the
Company
Founding of
the global online
fashion
destination
Opening of US
distribution
centre and
office
Completion of UK
distribution centre
automation
Launch of PORTER, a shoppable
magazine in print and digital
Introduction of
Client Relations team
Launch of
NET-A-SPORTER
Launch of Beauty
Launch
of branded,
owned same-day
delivery service
Launch of Launch of
Launch of
private label
Iris & Ink
Expansion
of UK
distribution
centre
Introduction
of Personal
Shopping team
Merger with
YOOX GROUP
and creation of
Opening of HK
distribution centre
& Shanghai office
Launch of the
first mobile
shopping app
Launch of
app, the first fully
shoppable social
shopping network
2009 2011 2012 2014 2010 2013 2002 2007 2005 2015 2006 2004 2000
US warehouse
automation
Opening of the
Manhattan office Translation of
NET-A-PORTER
in French, German and
Chinese
P A G E N U M B E R
A SMALL SHARE OF MULTI-BRAND ONLINE LUXURY
MULTI-BRAND FULL PRICE: THE PREFERRED SOURCE OF ONLINE RESEARCH2
12%
13%
15%
21%
26%
29%
31%
34%
34%
39%
Other social media
Luxury blogs
Multi-brand event
Luxury forum
Official brand sites
Multi-brand off price
Dept. stores
Multi-brand full price
% of respondents
INDEPENDENT INDUSTRY ANALYSIS CONFIRMS GROWTH IN MULTI-BRAND RETAILING2,3
Luxury shoppers are increasingly turning to multi-brand retailer sites to easily compare products and prices
Luxury brands becoming more comfortable selling and marketing on both their own site and on luxury e-tailers’
– Brands accept that these channels are not
mutually exclusive
Multi-brand e-tailers enable luxury brands to reach time-pressed consumers and those who are seeking wider selection
€5.7bn (2015) 16%
MULTI-BRAND ONLINE PERSONAL LUXURY GOODS MARKET1
Note: For sources cited on this slide, please refer to slide 173. For all the definitions (indicated with " * "), please refer to slide 172
YNAP Multi-Brand In-Season Business Line
P A G E N U M B E R
GROSS MARGIN*
Omni-stock programme
MR PORTER private label
Better buying terms
Increase ROI thanks to in-housing of performance-
marketing team
Greater share of own ‚assets‛ in the marketing mix
Synergies across NET-A-PORTER and MR PORTER
(combined web marketing, Personal Shoppers and Client
Relations teams, events, select advertising campaigns)
Higher sell-through thanks to Omni-stock programme
Better management of product lifecycle
MR PORTER private label
Increasing share of de-risked stock (e.g., return to vendor, etc.)
EBITDA PRE CORPORATE COSTS*
MARKETING AS % OF NR
INVENTORY TURNS
Increase in customer base, with over-indexed growth of
HNWIs
– Target the Household
Increase in retention rate and share of wallet at stable cost
Increased penetration of best-performing categories and select add-ons
– Launch of Fine Jewellery & Watches
– Launch of MR PORTER private label
– Increasing share of shoes, bags & accessories
Maintain core focus in the US, coupled with strong international expansion
– Robust local strategies
WORKING CAPITAL*
KEY DRIVERS NET REVENUES
STRONG TOP-LINE GROWTH PROFITABILITY AND CASH FLOW ENHANCEMENTS
P A G E N U M B E R
Strategic lifestyle
partnerships
‚Newness‛ (daily content,
frequent product uploads)
In-house performance
marketing
Brand Ambassadors:
Existing HNW customers;
Opinion leaders
Regionally relevant and short-form
content
Client Relations
team
1:1 Personalised
value propositions
Household loyalty
scheme
Further enhanced
service
Personal Shopping
team
WORLD-CLASS CONTENT
UNPARALLELED PRODUCT
BEST-IN-CLASS SERVICE
BEST SHOP
ACQUISITION
ENGAGEMENT / SHARE OF WALLET
RETENTION
PORTER magazine
Household-focused
proposition
Social channels
Increase customer acquisition, engagement and retention at stable cost by better leveraging our own assets (proprietary media
channels, Personal Shopping and Client Relations teams)
Leverage data to fuel sophisticated CRM programme
P A G E N U M B E R
ACTIVE CUSTOMERS5 NET REVENUES5
WORLD POPULATION6 GLOBAL WEALTH6
Our HNW customers - the Extremely Important Persons (‚EIPs‛): net spend ~€10,000 per year*
Mirrors global HNWI distribution
Significantly outperform other customer segments
Retention4
…incredible loyalty Higher engagement…
Non-EIP EIP
Order Frequency4
Non-EIP EIP
Higher spending
AOV4
P A G E N U M B E R
Tap into HNW network of our most engaged EIPs
Create an influential community
Highly-cost effective
Strengthen existing profiling capabilities to
– Identify prospective high-value customers
– Drive migration to EIP status
Promote unique benefits of invitation-only EIP programme
Strengthen proposition to lure potential high-value customers
– Content
– Loyalty program
– Social
Create opportunities to introduce new customers
Offer offline ‚Money Can’t Buy‛ experiences to increase
engagement
SOPHISTICATED CRM
TARGET NEXT GENERATION OF EIPs
BRAND AMBASSADORS
CLIENT RELATIONS
P A G E N U M B E R
Cross-selling Gifting
Shared basket and optional unified sign-on
Shared loyalty programme
Marketing and organisational efficiencies through combined In-Season approach:
Shared performance-marketing and CRM teams
1 Personal Shopping team
Combined media campaigns and EIP events
Significant opportunity to expand the customer base that shops across NET-A-PORTER and MR PORTER, while preserving brand differentiation
MR PORTER SHOPPERS ARE
FEMALE8
CUSTOMERS ARE MARRIED OR LIVE WITH PARTNERS7
MR PORTER CUSTOMERS
SHOP ON NAP8
Maximise household share of wallet
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
Differentiation through service
Unique opportunities created to engage with prospective
high-value customers via existing community
1:1 relationships that go beyond online shopping
Offline experiences
Drive EIP customer acquisition (Client Relations) and
engagement (Personal Shoppers)
LANGUAGES SPOKEN BY
CLIENT RELATIONS &
PERSONAL SHOPPERS
Increased local presence and face-to-face interaction in
priority areas to capitalise on their proven success
INCREASE IN EIP
SPEND AFTER
SHOPPING EVENTS4
UPLIFT IN EIP
ANNUAL SPEND VIA
PERSONAL SHOPPERS4
HIGHER GROWTH IN EIP
SALES MADE VIA
PERSONAL SHOPPERS4
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
A platform to target the next wave of customers
New technology for millennials and beyond
In-app messaging with AI bots
A 24/7 in-pocket concierge for EIPs
Focus on own proprietary social platforms and
key external ones to push content to drive
acquisition and conversion
Instagram, Facebook, Snapchat, WeChat
Where we are today - our two-pronged approach
Native apps as an effective engagement and retention channel for
existing customers
Mobile sites as an acquisition tool through which more and more customers
constantly discover us
Where we are heading - enhancing our mobile-centric approach deployed across 3
dimensions to ensure a best-in-class, personalised experience across native apps and
mobile sites
SERVICE
SOCIAL
CONTENT
INNOVATION
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
Highly-curated product
Captivating fashion edit
The world’s most sought after designers
Exclusive capsules and collaborations
Elevated through our unique combination of
Styling
Editorial
Offer continues to evolve…
…TO INCREASE HNWI SHARE OF WALLET &
ACQUIRE PREMIUM EIPs
New prestige brand and category wins
Increase share of Shoes & Bags
Focus on categories beneficial for EIP pipeline (e.g. Sportswear, Beauty)
Launch of MR PORTER private label
…TO LURE NEXT CUSTOMERS
P A G E N U M B E R
Tiffany’s exclusive launch on NET-A-PORTER (April 2016)
Category 1 Category 2
7%
Total Personal Luxury Goods
in 201511
Offline Online
Hard Luxury, an under-penetrated category online
Almost no competition as mainly purchased through
brands’ online flagship stores
Increasing appetite for branded jewellery
– Branded jewels accounted for 20% in 2011, expected
to reach 30-40% share10
Perfect complement to high-fashion
Attractive add-on for HNW customers
Consignment model (zero inventory)
AOV and Cash Flow enhancing
Unique opportunity for Brands to feature their pieces
styled with the world’s best fashion offer
Great performance by Tiffany and Zenith
OUR POTENTIAL
3.4%
€54bn
Hard Luxury in
201510,11
€253bn
THE MARKET
HARD LUXURY ONLINE
IN SALES OPPORTUNITY BY 2020
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
RATIONALE
Cement MR PORTER positioning and drive brand awareness among prospective customers
Fill the assortment
Increase customer loyalty
Enhance retail margin and cash flow
THE STRATEGY
Timing: Launching in 2017
Distribution: Exclusive to MR PORTER.COM
Positioning: Between Contemporary and Casual
Assortment comprised of:
Wardrobe essentials
Mostly Ready-to-Wear, complemented by shoes and accessories
P A G E N U M B E R
Core to our DNA
We invented ‚Content to Commerce‛, revolutionising the
way we shop luxury fashion
A key differentiator, establishing us as an authoritative voice
Increasingly leveraged as powerful marketing channel
Drives traffic, customer acquisition and engagement
Always shoppable, searchable and shareable
Improves ‚stickiness‛ through regionally-relevant
and daily short-form content
Widely distributed across all relevant platforms within our
network and beyond (social channels)
Enhances Search Engine Optimisation
P A G E N U M B E R
The Rationale: completing our offer for customers and our proposition for brands
Our research shows that customers still mostly consume fashion through print
Closed the gap between content and commerce fuelled by the NET-A-PORTER
native app and created a physical embodiment of the Brand
Rounded off our proposition as a partner to brands, from retail to media
Leveraged as a marketing tool for NET-A-PORTER
Offers a great opportunity to increase acquisition and deepen engagement
Expected to break even by end of 2017, monetised by:
Advertising
Circulation
STARTED THEIR RELATIONSHIP ON PORTER BEFORE LAUNCHING ON NET-A-PORTER
Entrench brands’ loyalty and act as an incubator for target brands
HIGHER ORDER FREQUENCY FOR PORTER SUBSCRIBERS7
PORTER SUBSCRIBERS HASN’T SHOPPED ON NAP YET7
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
OVERARCHING STRATEGY
Focus on localisation
Develop a tailored regional approach, targeting top cities first
Marketing: strengthen brand awareness initiatives, focusing on:
Local marketing and PR teams
Social channels
Local lifestyle partnerships
Locally-relevant content
Localised service proposition
Language
In-language customer care
Payment options
Delivery methods
Strengthen dominant position in the US, still no.1 country by 2020
Strong focus on international expansion, leveraging YOOX’s localisation expertise and platform
Capture full potential in APAC
Accelerate growth in the Middle East through full in-country presence
Increase outreach in most promising countries in continental Europe
PRIORITIES
P A G E N U M B E R
Increase awareness in remaining target cities, e.g.:
Local Personal Shoppers in San Francisco
Strong localised proposition in core cities, e.g.:
Local Personal Shoppers (‚PS‛) in Los Angeles
West Coast base for Personal Shoppers, Client
Relations (‚CR‛) and PRs
Further invest in a state-level approach, e.g.:
Brand-building activities
Lifestyle partnerships
Top HNWI Cities12
Target EIPs on a city-by-city basis
– On-the-ground PS presence in LA and SF
Maintain momentum in New York
– On-ground Brand-building activities & Lifestyle partnerships state by state
– West Coast base for PS & CR
– Build local presence in secondary cities
Core cities
Secondary cities
Boston Washington D.C.
New York
Los Angeles
San Francisco
Miami
Dallas
Seattle
San Jose
Houston
Philadelphia
Chicago
2016 2H 2017 1H 2017 2H 2018 1H 2018 2H 2019 2020
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
HONG KONG & AUSTRALIA
Maintain focus and increase outreach
Client Relations team (‚CR‛) in Australia
Client Relations to build future EIP customer base
Increase presence of Personal Shoppers (‚PS‛)
Influencer program
CHINA
Exploit high mobile penetration
JAPAN
Break into the market
MIDDLE EAST
Lift-off, establish full in-country presence
Top HNWI Cities12
Core cities
Secondary cities
Dubai
Sydney
Tokyo Beijing
Shanghai
Taipei
Shenzhen/Hong Kong
Guangzhou
– NAP Influencer Program in China
– CR in Australia
– CR in Japan
– PS in UAE and Saudi
– NAP PS in China – Tailored delivery options, currencies and payment methods in all countries
– MRP localisation in China
– MRP PS in China
– NAP & MRP localisation in Japan and ME – Customer care on WeChat in China
2016 2H 2017 1H 2017 2H 2018 1H 2018 2H 2019 2020
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
Istanbul
Moscow
Madrid
London Dublin
Paris
Geneva/Zurich
Vienna
Frankfurt
Berlin
Dusseldorf
Hamburg Amsterdam
GERMANY and FRANCE
Build on localised approach
Local Personal Shopping team (‚PS‛)
Premier delivery in Milan
ITALY
Establish our presence
Local Client Relations team (‚CR‛)
Local delivery options
RUSSIA
Gain a foothold in the market
Munich
Core cities
Secondary cities
Top HNWI Cities12
Milan
UK
Adopt a nimble approach
– Premier delivery in Milan
– CR in Russia
2016 2H 2017 1H 2017 2H 2018 1H 2018 2H 2019 2020
– Tailored delivery options, currencies and payment methods in all countries
– MRP localisation in FR & DE
– NAP & MRP localisation in Italy and RU
– PS in Italy
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
TURNKEY E-COMMERCE SOLUTION
to provide luxury fashion brands with a turnkey solution for their global e-commerce expansion
THE CONSUMER
THE MARKET CONTEXT
OUR ANSWER
BRANDS EXPECTATIONS
Hassle-free e-commerce
Ownership of their online flagship stores’ marketing and retail strategies
Online Flagship Store as a digital window rather than a real shop
Pre ‚Omni-channel‛
Implied limited interest in value-adding services
Pre-digital
Pre-mobile
In her early days of discovering social networks
Not expecting interaction between online and offline
For all the definitions (indicated with " * "), please refer to slide 172
P A G E N U M B E R
to accompany luxury fashion brands in the next wave of digital transformation, through a flexible partnership capable of fully integrating with brands’ retail assets
Hassle-free e-commerce
Ownership of their online flagship stores’ marketing and retail strategies
Large digital sales
Various degrees of interaction between physical and digital stores
Highly differentiating and value-adding digital services
Digitally-savvy
Hyper-connected
Socially engaged
Expecting a seamless and consistent experience between online and offline
THE MARKET CONTEXT
A FLEXIBLE, CUSTOMISABLE & EASY-TO-INTEGRATE E-COMMERCE SOLUTION
OUR ANSWER
THE CONSUMER
BRANDS EXPECTATIONS
P A G E N U M B E R
60% of sales growth over last 10 years driven by price increases but rise
of e-commerce and tourism is putting pressure on Brands to rebalance
pricing
LUXURY GOODS GROWTH DRIVEN BY STORE OPENINGS AND PRICE INCREASES OVER THE LAST DECADE1
... YNAP uniquely positioned to help luxury brands navigate the next wave of e-commerce
FUTURE GROWTH TO BE DRIVEN BY INCREASE IN STORE PRODUCTIVITY AND MONO-BRAND E-COMMERCE
Brands planning to increase sales density in their existing store network
Brands’ online flagship stores will be a key driver of sales and demand
Omni-channel will contribute to store’s productivity
0
200
400
600
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Store network growth Average sales growth
0%
20%
40%
60%
80%
100%
>40% of top Luxury and Fashion Brand retail stores opened in the last 5
years
Growth in store network substantially outpaced underlying demand 4%
Average 41%
% s
tore
op
en
ing
s
in p
ast
5 y
ears
S
up
ply
-de
man
d
Bala
nce
Emerging trends
suggest growing
market opportunity for
YOOX NET-A-PORTER
€4.7bn (2015)2
Note: For sources cited on this slide, please refer to slide 173
MONO-BRAND ONLINE PERSONAL
LUXURY GOODS MARKET2
YNAP Online Flagship Stores
P A G E N U M B E R
Customising our solution based on brand’s specific needs, assets and digital ambitions
Deep Retail Integration
Maximum customer loyalty (Single view of the customer)
Retail efficiency (Single view of inventory)
GLOBAL CUSTOMER
CARE
LUXURY ORIENTED
FRONT-END TECHNOLOGY
DIGITAL MARKETING
E-COMMERCE-SPECIFIC BUYING AND
MERCHANDISE
B2C LOGISTICS
SETTING UP OMNI-CHANNEL E-COMMERCE OPERATIONS ADDS NEW COMPLEXITIES FOR BRANDS
TRAINING OF RETAIL STAFF AND NEW INCENTIVE SCHEMES
LIGHT IT INTEGRATION
B2C INVOICING ORGANISATON
REDESIGN
DEEP IT INTEGRATION
BRAND OBJECTIVE
E-commerce focus
Maximised attention to digital sales
YOOX NET-A-PORTER GROUP OFFERING
TURNKEY
CUSTOMER EXPERIENCE
Rich digital brand experience
Light Retail Integration
Improved customer loyalty
Store traffic
LIGHT OMNI-CHANNEL Retail stores as service hubs
FULLY-INTEGRATED OMNI-CHANNEL Seamless online-offline brand experience
P A G E N U M B E R
Strategy Operations
BRAND RETAIL OWNERSHIP
Degree of Retail Integration
YNAP VALUE PROPOSITION
Cost / Investments, Time / Complexity for Brands
WITH YNAP
WITHOUT YNAP
FU
LLY
-
INT
EG
RA
TE
D
OM
NI-
CH
AN
NE
L
LIG
HT
OM
NI-
CH
AN
NE
L
TU
RN
KE
Y
Across all 3 models, Brands fully own the retailing and marketing strategies for their Online Flagship Stores
Increasing degree of omni-channel enablement commands increasing level of operational involvement from Brands (greater
empowerment of retail stores for e-commerce fulfilment & sales)
As ‚e-commerce‛ evolves into ‚omni-channel‛, bringing greater complexity, YNAP’s value proposition - accelerating time-to-
market, reducing costs, investments and execution risk - increases
FULLY-INTEGRATED OMNI-CHANNEL
LIGHT OMNI-CHANNEL
TURNKEY
P A G E N U M B E R
NEW SERVICES
LIGHT OMNI-CHANNEL
DISCRETIONARY SERVICES
CORE SERVICES
TECHNOLOGY
FINANCIAL SERVICES
FULFILMENT
DELIVERIES
CUSTOMER CARE
DIGITAL MARKETING SERVICES
MERCHANDISE PLANNING & BUYING CONSULTANCY
WEB DESIGN & CREATIVITY
DIGITAL PRODUCTION
DATA INSIGHTS
INNOVATIVE NATIVE APPS
CREATIVITY & DIGITAL PROJECTS
EDITORIAL CONTENT
CUSTOMER SERVICE INNOVATION
CONSULTANCY SERVICES
YNAP’s Order Management System to integrate with Brands’ retail systems to enable ‚Ship from Store‛ (Single view of inventory)
Brands to directly invoice the final customer (Single view of the customer)
P A G E N U M B E R
Enhanced scalability
Allowing to scale and integrate more easily and efficiently while adding new stores,
geographies, volumes and features
Increased flexibility
Delivering unique brand experiences and customising user interfaces to fully reflect
brands’ identity online
Ease of integration
Allowing top-notch omni-channel integration with luxury brands and their retail assets
Sophisticated content management and business tools
Further enhancing blending of content and commerce, while allowing for user-friendly
management of all customer-facing interfaces by both internal and external stakeholders
Mobile centricity
Ensuring ‚always on‛ brand experience on mobile devices to be increasingly leveraged as
gateways for unique services and a richer omni-channel experience through mobile-only
interactions
P A G E N U M B E R
SINGLE VIEW OF THE CUSTOMER
Online & offline customer information integrated
in a single database
SHIP FROM STORE AND SAME-DAY DELIVERY
Buy online and ship from the nearest store
CLICK & COLLECT
Buy online & pick up in store
CLICK & RESERVE
Reserve online and pay in store upon pick-up
RETURN IN STORE
Buy online & return in store
CLICK FROM STORE
Buy online from in-store Kiosks or iPads
CLICK & EXCHANGE
Buy online, return and exchange in store
BUY ON CALL
Buy over the phone via experienced consultants
FASHION ADVICE
Phone & Live Chat assistance while shopping online
BOOKING OF IN-STORE APPOINTMENT
Book an in store tailoring appointment online
P A G E N U M B E R
Leverage YNAP mobile focus to the benefit of Brands’ strategies, developing their native apps:
– Drive omni-channel shopping experience (beacon integration, etc.)
– Enhance service levels to Brands’ VIP customers (concierge services, in-app messaging services)
– Constantly engage with brands’ lovers leveraging Brands’ rich content and storytelling
NATIVE APP SERVICES
Dedicated service for top Brands’ customers providing personal shopping services and product advice
CREATIVITY & DIGITAL PROJECTS
Digital storytelling to turn brand assets into compelling shopping experiences
Conception and execution of editorial plans
EDITORIAL CONTENT
CUSTOMER SERVICE
Insights into our Brand Partners’ customer shopping behaviour on YNAP’s proprietary stores to inform Brands’ strategies
Blind benchmarks with comparable brands to inform e-commerce buying & marketing decisions
DATA INSIGHTS
Ideation and development of creative concepts for luxury websites, staying true to the Brand’s vision and identity while ensuring best user experience
Creation and execution of Brand’s digital marketing projects for specific collections or events
P A G E N U M B E R
Personalised stickers to seal every order
Client initials
Handwritten cards
Olfactory sensations
Leverage NET-A-PORTER’s unparalleled skills in fashion photography, photo-retouching, styling and video-making to further enhance brands’ capability to portray their collections
Same-day delivery capabilities in the world’s fashion capitals (London, New York, Hong Kong, to be extended to Milan, Tokyo, Shanghai, Dubai) through proprietary fleet and dedicated team (operating week days, weekends, during office hours or in the evening)
Brand visibility across multiple NET-A-PORTER and MR PORTER platforms: online, print, social, mobile
Brand exposure to the largest and most sophisticated luxury customer base
LUXURY PACKAGING
PHOTOGRAPHY AND VIDEO MAKING
DELIVERY VISIBILITY ON
NET-A-PORTER AND MR PORTER
LUXURY OPERATIONS
HIGHLY QUALIFIED AUDIENCE
P A G E N U M B E R
Fashion to remain core focus: leverage the proximity to NET-A-PORTER
and MR PORTER (consistent target customer and brand selection)
- Other segments and categories by opportunity
Dynamic and profit-driven portfolio management for both renewals and
new partnerships, with focus on:
- Fewer bigger partnerships and upcoming fashion stars
- Digitally ambitious brands
FOCUS
Luxury customer operations and value-added services with Multi-
brand In-Season
Business development
YOOX and THE OUTNET’s privileged access to Online Flagship
Stores’ off-season stock
Data insights and holistic digital understanding of the luxury customer
profile
Shape the future of luxury in the digital age
Be the Research Lab for luxury brands
Support luxury brands to fully seize the omni-channel opportunity
MAXIMISE
SYNERGIES ACROSS
BUSINESS LINES
FOSTER
INNOVATION
LEAD IN LUXURY
OMNI-CHANNEL
P A G E N U M B E R
CONTRACT LENGTH
GEOGRAPHICAL SCOPE
RUNNING ECONOMICS
INITIAL SET-UP FEE
Long-term
contract
(Mostly 5y+)
GLOBAL
$
Revenue
Share
based
Flexible duration for discretionary
and value-added services upon
Brands’ needs
$ $ $
FULLY-INTEGRATED OMNI-CHANNEL
Long-term
contract
(Mostly 5y+)
GLOBAL
Revenue
Share
based
Flexibility to manage
different degrees of
integration across regions
Premium pricing for discretionary and
value-added services, based on
consumption
TURNKEY & LIGHT OMNI-CHANNEL
TERMS
P A G E N U M B E R
Organic growth of existing online stores to
contribute most of the growth
New select business developments
Enhanced omni-channel proposition
New value-added services
Over time, as more Brands embrace the fully-
integrated omni-channel model with direct invoicing,
GMV* will become the most relevant indicator for
underlying revenue growth: YNAP will only book its
fees as opposed to 100% of transaction value
As a result, reported Net Revenue growth will be
slightly diluted compared to GMV growth
Conservative outlook on revenue share evolution
Premium-pricing for discretionary and value-added
services to partially counterbalance
CONSERVATIVE OUTLOOK ON PROFITABILITY
KEY DRIVERS
EBITDA Pre Corporate Costs* as % of Net
Revenues will be slightly diluted over the Plan
period
STRONG TOP-LINE GROWTH
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
YOOX AND THE OUTNET CURRENTLY REPRESENT 10% OF THE ONLINE OFF-PRICE LUXURY GOODS MARKET…
YNAP Multi-Brand Off-Season Business Line
…FUTURE PROSPECTS LOOK BRIGHT
Off-price retailers well positioned for future growth, benefitting from industry's over supply
Brands still find it difficult to plan inventory levels due to lengthy stocking cycles and extremely fickle demand
Luxury Brands with high pricing power and large fixed costs unlikely to risk stock-outs as mark-down sales still generate profit
Luxury fashion houses currently reconsidering their strategic approach to the channel
Some Brands are reducing mark-down exposure in regular stores while leveraging more off-price retailers for de-stocking
Bain & Co. expects the off-price format to outpace the growth of the total luxury market moving from a 10% share in 2015 to 13% in 2020, implying a ~8% CAGR (vs. 2-3% of the total luxury market)4
In US alone, 60 new outlets (out of 215) are planned over the next 3 years5
Behavioural shift with Millennials attracted towards off-price market
Total Online
OFF-PRICE PERSONAL LUXURY GOODS MARKET1,2
€5.9bn
22%
25%
24%
23%
26%
24%
25%
27%
26% 25% 26%
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Luxury Sector Consistently Growing Inventory Levels3
€31.8bn
10%
2015
Online
Offline
Inventory / Sales
Note: For sources cited on this slide, please refer to slide 173 For all the definitions (indicated with " * "), please refer to slide 172
P A G E N U M B E R
Mostly women
Mainly between
35 and 45
Style-conscious,
searching for inspiration
TARGET AUDIENCE FOCUSED WIDE
RE
TA
IL P
RIC
E
Assortment Width
2/3 women, 1/3 men
Mainly between
20 and 40
Curious, like to style
themselves, global
1. Broad offering of off-season premium fashion complemented
by select full-price pieces, art and design (~600,000 SKUs)
2. Wider range of price points
3. ‚Treasure hunting‛ shopping
1. Highy curated offer (~35,000 SKUs) of previous season
high-fashion, relevant to current trends
2. Focused on higher price points
3. ‚Style-advice‛ shopping
P A G E N U M B E R
The world’s leading online lifestyle store
for fashion, design and art
The most fashionable fashion outlet
Unparallelled buying and merchandising skills creating the world’s most chic curated off-season offer
Highly luxurious customer service and experience
Strong brand marketing expertise
Italian roots enabling proximity and privileged relationships with luxury brands
Sophisticated proprietary pricing algorithm
Highly skilled team of performance marketers
Truly global fashion e-commerce player with deep localisation expertise
Authoritative editorial content a key marketing lever
Unmatched capabilities in product presentation Best-in-class analytical retailing capabilities
P A G E N U M B E R
Growth of high-quality product offer
Strong growth of YOOX customer base through
investment in awareness and focus on high-value
customers
Personalised mobile propositions to drive
engagement and loyalty
Strong international expansion at THE OUTNET
through a localised approach
The US the single largest country; Europe to remain a key
contributor
Launch of YOOX’s Private label
PROFITABILITY AND CASH FLOW ENHANCEMENTS STRONG TOP-LINE GROWTH
GROSS MARGIN*
Better sell-through on initial price, driven by increased frequency of new product uploads
Improved product sourcing conditions by combining buying efforts
THE OUTNET pricing sophistication
Omni-stock programme
Increasing share of higher-margin private label
Increase in marketing spend to drive YOOX.COM awareness and increasingly target higher-value customers
MARKETING AS % OF NR
INVENTORY TURNS
KEY DRIVERS
EBITDA PRE CORPORATE COSTS*
Higher sell-through thanks to Omni-stock programme
Shorter lead-times due to in-bound process improvements
Enhanced time-to-market thanks to flexible Private label sourcing cycle
WORKING CAPITAL*
NET REVENUES
P A G E N U M B E R
Focus on targeting high-value customers
Increase awareness through ad hoc advertising initiatives
Bring products to life through storytelling
From Product-driven strategy fuelled by SEM
to more balanced Product & Brand strategy
with greater investments in brand awareness
Focus on top performing brands (top 150 accounting for ~60% of sales)
Enhanced on-site product presentation
Launch of Private Label
Continue to complement Off-Season offer with select full-price categories (e.g. sportswear)
Catalogue curation
and refinement to appeal
to high-value customers
Best-in-class service
across all customer
touchpoints
Smooth, localised and personalised mobile experience
Geo-localised services for top customers in major cities
Enhanced customer care (faster response times tailored to customer segments)
Style advisory for top customers
TOMORROW
MARKETING PRODUCT SERVICE
ENGAGEMENT
AWARENESS
CONVERSION
ENGAGEMENT
BRAND
PRODUCT
TODAY
And many many more…
P A G E N U M B E R
PRODUCT SERVICE
TODAY
Brand-building and targeted city-approach to remain at the core of marketing strategies
Leverage newly combined performance-based marketing team to maximise ROI
Design highly-localised strategies to drive conversion upon new market entries
Open up new revenue streams:
– Mono-brands’ previous seasons
– Select retail buying opportunities leveraging YOOX’s network
Grow shoes and handbags
Add activewear
Strengthen shoe business on IRIS & INK
ENGAGEMENT
TOMORROW
NAP
MANUFACTURERS READY-TO-WEAR
Expand Front Row VIP loyalty program initiatives and further personalise on-site experience
Further personalise products and content through more sophisticated geo-targeting and customer profiling (e.g., exclusive VIP treatment)
Personalise packaging design and look
Brand-driven strategy fuelled by content and
awareness initiatives to be complemented
with increased focus on conversion
Highly curated product
offering to be enriched
by complementary categories
SOURCING MIX PRODUCT MIX
The most luxurious service
in the end-of-season space,
increasingly personalised
AWARENESS
CONVERSION
ENGAGEMENT
RETAILERS, MONO-BRAND
ACCESSORIES, SHOES, ACTIVEWEAR
BRAND
PRODUCT
MARKETING
P A G E N U M B E R
RATIONALE
LEVERAGING IRIS & INK TRACK RECORD
LAUNCHING YOOX’s PRIVATE LABEL
Proven strategy for margin and cash flow enhancement
Extend depth of best-selling categories
Strengthen relationships with customers
Unlock value from 16 years of customer insights
Launched in September 2012 as THE OUTNET’s private label of elevated wardrobe essentials
Already ranks amongst top 10 brands and expected to gain share
To debut on YOOX.COM in the Fall
In 2017, YOOX will launch a portfolio of labels catering to different audiences (by gender, by age, etc.) servicing different needs: wardrobe essentials, seasonal trends, special occasions
Exclusively distributed on YOOX and THE OUTNET
‘’Made in Italy’’ differentiating factor
OF OFF-SEASON NET REVENUES BY 2020
P A G E N U M B E R
Drive economies of scale in sourcing and production by pooling efforts and resources to maximise margins
Build one efficient supplier network to optimise production cycle and collection time-to-market
– Leverage Italy, among other countries, as the world’s most important fashion production hub
Empower our Brands to focus on concept development, research, design and retail merchandising to ensure differentiation
PRIVATE LABEL SOURCING PLATFORM KEY RESPONSIBILITIES
RATIONALE
PRODUCT
PLANNING
SUPPLIER
SELECTION AND
MANAGEMENT
(Including negotiation terms)
COLLECTION
PROGRESS
MONITORING
DELIVERY
PLANNING AND
MANAGEMENT
QUALITY
CONTROL
AND SAMPLING
P A G E N U M B E R
LEVERAGING AN UNMATCHED QUANTITY
OF INTERNAL AND EXTERNAL DATA...
Higher marketing
ROI
Higher retention
rate
Increased share of wallet
Better retail
margin
...REFINE IT INTO SMART
CUSTOMER PROFILES...
...AND TAILOR THE BEST OFFER
TO EACH PERSON AT THE RIGHT PRICE
P A G E N U M B E R
BEST-IN-CLASS U|X
Search & Browse Payments
PERSONALISATION
Recommendation Geolocalisation
SERVICE
Loyalty Style Advisory
P A G E N U M B E R
Untapped growth potential worldwide
Accelerated international roll-out plan, building on YOOX’s localisation asset capabilities and expertise (language site, in-language customer
care, payments and delivery options)
Full deployment of THE OUTNET’s proven marketing recipe for brand building and awareness
Local PRs
VIP Program
Events
Performance Web Marketing
Digital and Print Advertising
Local Marketing Partnership
STAGED MARKETING APPROACH TO LOCALISATION
Targeted markets
2016 2020
DE FR
Middle East
2017 2018 2019
Other APAC
RU JP CN
P A G E N U M B E R
Embrace Multi-channel Approach to Marketing
Initiatives across PR, events, digital and print advertising,
strategic partnerships and performance-based web
marketing
Build on THE OUTNET’S City-Approach success
THE OUTNET to build on existing success in core cities
(New York, Los Angeles, Miami) by expanding to San
Francisco, Chicago, Washington D.C., Boston, Dallas and
Houston
YOOX to leverage THE OUTNET’S existing presence
in core cities to build brand awareness
Tailor YOOX’s product offering to local tastes
Introduction of local buying
Selective visibility of global catalogue
2016
New York
Los Angeles
Miami
San Francisco
Houston
Dallas
Chicago Boston
Washington D.C.
2017 2018 2019 2020
THE OUTNET
YOOX
San Francisco Boston
Washington Dallas
Houston New York Miami
Los Angeles
New York Los Angeles
Miami San Francisco
Chicago
P A G E N U M B E R
2016 2020
ITALY
Consolidate YOOX’s leadership
Offline initiatives to drive awareness targeting key cities first
Wider delivery options including pick-up and returns solutions
VIP-dedicated services
GERMANY and FRANCE
Strengthen existing presence
THE OUTNET to launch in-language website, customer care and locally relevant payment systems in 2017
GER FR
RUSSIA
Capture Europe’s fastest growth opportunity
YOOX to bolster leading position by strengthening dedicated team, locally-relevant partnerships, enhanced customer services
Starting from H2 2017, THE OUTNET to roll out a phased localisation strategy with dedicated delivery, local payment options, in-language website and customer care leveraging YOOX’s existing operational capabilities
RU NORDICS
2017 2018 2019
THE OUTNET YOOX
P A G E N U M B E R
2016 2020
YOOX to further strengthen its leading position in the high-end market segment with a strong mobile-centric proposition to drive loyalty and engagement
THE OUTNET to launch with a fully localised proposition leveraging YOOX’s existing local team and infrastructure
JAPAN
THE OUTNET: full localisation in Japan
Leverage the off-season market opportunity mainly through YOOX and continue to build on its unparalleled track record
CHINA
THE OUTNET: localisation in China
Launch of full in-country presence
MIDDLE EAST
Middle East launch
Seize growth opportunities in highly promising online luxury markets through more robust localised strategies
THE FOUR ASIAN TIGERS
THE OUTNET: introduction of Alipay, AUD, HKD, SGD
YOOX: introduction of AUD, TWD and SKW
THE OUTNET: localisation S. Korea
Deepen localisation efforts and in-country marketing initiatives
Continue to strengthen THE OUTNET focus to drive growth
AUSTRALIA
2017 2018 2019
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
STRATEGIC VISION
FINANCIAL TARGETS
PLATFORM
MULTI-BRAND IN-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
MULTI-BRAND OFF-SEASON
THE MIDDLE EAST AND CHINA
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
STRICTLY PRIVATE AND CONFIDENTIAL
CHINA MIDDLE EAST
High internet and mobile penetration
Limited competition in our space
Strong luxury consumption
Stepping up our technology and operational
capabilities
Strenghtening our marketing focus
Setting the local market standards for luxury
shopping online
2015 2020
~ €80m
THE MARKET YOOX NET-A-PORTER GROUP
Confirming YOOX NET-A-PORTER GROUP as the only truly
Global Fashion E-commerce Player
YNAP 2015-2020 Net Revenues1
1. Middle East Net Revenues include Gulf Cooperation Council Region (‘’GCC’’) and China Net Revenues are related to Mainland China only
For all the definitions (indicated with " * "), please refer to slide 172
P A G E N U M B E R
STRICTLY PRIVATE AND CONFIDENTIAL
2012 2015 2020
~3% of global luxury consumption in 2015
Biggest opportunity in the GCC, boasting some of the world’s highest GDP per-capita
Local retail landscape dominated by mono-brand formats
Dubai set to become the hub of trade and tourism across Middle East, Africa and Asia
Dubai the most attractive city for UHNWIs in the region, ranking 8th globally
MIDDLE EASTERN PERSONAL LUXURY GOODS MARKET2
€6.3bn
€8.1bn
€12.2bn
+10%
+9%
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
STRICTLY PRIVATE AND CONFIDENTIAL
The Middle East
Promising E-commerce Landscape
Already high internet penetration
Smartphone adoption set to increase by ~50%
reaching 176% in 2020, with UAE and Saudi Arabia
boasting two of the world’s highest penetration
rates3
High Government investments in IT infrastructure
and e-services
~50% of population under 30
No international fashion e-commerce player serves
the region with adequate service levels to match
local expectations
Size of Net-A-Porter’s current business in the region
– carried out with limited degree of localisation –
suggests significant opportunity
Local players primarily address low-end segment of
the market and mainly in flash-sale formats
Almost no luxury brand operates a fully localised
online store in the region
Still very limited competition in Our Space
93.4% 93.4%
92.4%
Bahrain Qatar UAE
84% GCC
Average
2015 INTERNET PENETRATION IN THE GCC4
Note: For sources cited on this slide, please refer to slide 173
P A G E N U M B E R
Customer Age by Brand
… with orders worth 50% more
Comparison between GCC customers5 and Global Average
… and spend more than their global fellows!
EIPs are in good company… Younger
Global GCC
5. Data refer to Net-A-Porter and Mr Porter customers in FY2015 except for customer age, which also includes The Outnet.
… and return much less!
Spend ~2.5x more a year…
Annual Spend (€) Share of EIPs over Total
Customer Base
AOV from GCC EIPs vs Global Return Rate (%) Average Order Value (€)
30
35
40
NAP MRP TON
0
1,000
2,000
3,000
70
80
90
100
Global GCC
Non EIPs
EIPs
0
500
1000
NAP + MRP
0%
30%
60%
NAP + MRP
0
0.5
1
1.5
2
NAP MRP
1.1X
1.7X
Focus on EIPs
P A G E N U M B E R
CUSTOMER
REGULATION
LOGISTICS
PAYMENTS
Highly concentrated luxury
goods demand leading to
high customer expectations
Right-to-left Arabic writing
chiefly impacting user-
interface design
Local culture and religious
calendar requiring specific
commercial planning and
sensitivity around marketing
and digital production
B2C logistics infrastructure still
in its early development stage
E-commerce-unfriendly
addressing systems
Uncompetitive nature of
domestic delivery
Informal customs policies
between countries
Concerns about online
payment privacy and security
leading to very low credit card
adoption
Extensive use of cash-on-
delivery (70/80% of all online
transactions), creating the
need to transact in local
currencies
Different currencies across
countries
Relatively immature e-
commerce regulatory
framework and lack of
awareness and enforcement
mechanisms
Diverse legal structures from
country to country
P A G E N U M B E R
Local U|X and language site
In-language customer care
Customized buying, merchandising and pricing
Tailored digital marketing and CRM
Transaction in local currency
Local payment methods
Customised delivery and returns solutions
Partial inventory localisation
In-situ legal entity
Full in-country presence
CUSTOMER PAYMENTS LOGISTICS REGULATION
P A G E N U M B E R
ONLINE FLAGSHIP STORES
Dubai
B2C Flows (last-mile delivery)
B2B Flows (JIT and Replenishment) In-season Warehouse
Off-season Warehouse
Limited Liability Company with retail
trading licence established in Dubai
1
Just-in-time inventory flows from Italy
for Off-Season
4
Opening of local distribution centre in
Dubai
2
Set up of customer care team 3
Potential local sourcing 6
KEY MILESTONES
Set up of a local Middle Eastern entity equipped with local operations, retail and marketing capabilities operating as a YOOX NET-A-PORTER GROUP’s subsidiary
The local entity will be in charge of developing and managing YNAP’s business in the Region according to our Brands’ guidelines
It will fully leverage YNAP Group’s global technology and operations platform (i.e. to leverage YNAP’s favourable sourcing and buying capabilities in Italy; access YNAP’s just-in-time and replenishment Omni-stock set-up)
As a strategic shareholder Alabbar is in the position to provide valuable insight and support through his deep knowledge of regional luxury consumers and access to extensive local network
Just-in-time and replenishment flows from
Italy for In-Season
5
P A G E N U M B E R
STRICTLY PRIVATE AND CONFIDENTIAL
2017 2018
Launch of
Launch of
Legal entity
Launch of
Launch of
2019
[●●●]
Launch of
6
Warehouse Office Customer care
based on opportunity ONLINE FLAGSHIP STORES
6. Choice of Online Flagship Stores is arbitrary and for illustrative purposes only
P A G E N U M B E R
STRICTLY PRIVATE AND CONFIDENTIAL
Very young
Digitally native, mobile savvy, socially connected
Second generation luxury consumer, strongly upwardly mobile
Extremely attentive to superior service
Savvy about the relationship between quality and price
Often seeking ‚VIP‛ status
Increasingly female
Often travelling and shopping abroad (HK, JP, AUS, SING, TAIWAN but also EU and US)
EUROPE
HK
OTHER
US
JP
Spent outside of China
€65 billion
Spent in Mainland China,
of which ~ €1bn online
€15 billion
THE CHINESE LUXURY CONSUMER
CHINESE LUXURY GOODS CONSUMPTION
P A G E N U M B E R
Leverage convergence of platform to trigger enhanced customer experience: localisation, U|X, payments, with a strong focus on mobile
Rest of Europe 48.8%
Capitalize on early positive Net-A-
Porter momentum in the market
Special attention on growing local
EIP base
Enhance and fully localise
Net-A-Porter and Mr Porter from
2018
Rest of Europe 48.8%
MULTI-BRAND IN-SEASON MULTI-BRAND OFF-SEASON ONLINE FLAGSHIP STORES
‚POWERED BY YOOX NET-A-PORTER GROUP‛
JVCo with Kering
and many more …
Focus on YOOX.CN as the key
Brand to grow local awareness
Step-up local marketing, PR and
brand building activities
Leverage YOOX.CN position as
China’s most authentic online
fashion store, tailoring it to local
preferences
Focus on select major luxury brands
with strong recognition in the market
Evaluate ‘’O2O’’ opportunities, based
on partner’s strategies and capabilites
Develop select services to increase
partner’s visibility and digital presence
Evaluate partnership opportunities
between Online Flagship Stores and
local platforms
P A G E N U M B E R
YOOX NET-A-PORTER GROUP will increasingly integrate WeChat into its China business, making it the pillar of
social strategies for all its Brands and Online Flagship Stores
THE OPPORTUNITY
YOOX NET-A-PORTER GROUP in China on
570m users, of which 83% buying online
SOCIAL MEDIA
GEOLOCALISATION capabilities
BLOGGING & AFFILIATE Social marketing
PAYMENTS
CUSTOMER SERVICE
TEXT & VIDEO IM
SHOPPING
WeChat has evolved from a social network into a fully-fledged digital ecosystem which provides brands and merchants the opportunity to engage with customers and manage their full transaction,
delivering a brand-centric and content-rich shopping experience
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
– RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS
– FINANCIAL ANALYSIS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
2Q 2016 net revenues at €451 million, up 17% at constant FX (+13% at
current FX) compared with pro-forma net revenues of €400 million in 2Q 2015
Acceleration in revenue growth on 1Q 2016 across all business lines
Europe (excluding UK), APAC and Middle East outperforming
2Q performance led to 1H 2016 net revenues of €897 million, up 16% at
constant FX (+13% at current FX)
1H 2016 adjusted EBITDA1 at €76.5m, with a margin of 8.5% (vs 8.4% in 1H
2015)
1H 2016 adjusted net income1 up 15% at €37.0m (vs €32.1m in 1H 2015)
Net Cash at €138.8m as at 30 June 2016 (vs Net Cash of €62.1m as at
December 2015), benefitting from €100 million capital increase subscribed by
Alabbar Enterprises in April 2016
1. For full glossary, please refer to slide 172 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
P A G E N U M B E R
TO BE UPDATED
MULTI-BRAND IN-SEASON
Launch of A|X Armani Exchange in North America in mid July and Chloé
in Europe, US and APAC in late June
ONLINE FLAGSHIP STORES
Successful migration of 1st online store from former YOOX GROUP to
new Order Management System in August. Full process completion
expected in 4Q 2016
Start of construction of new In-season warehouse in Italy
PLATFORM
New brand additions: PRADA on NET-A-PORTER and MR PORTER,
Tiffany & Co. and Moncler on NET-A-PORTER, Ermenegildo Zegna on
MR PORTER
New numerous exclusive capsule collections, including GUCCI for
NET-A-PORTER
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
– RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS
– FINANCIAL ANALYSIS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
€80.1m €88.7m
€268.3m €318.3m
€443.4m €490.1m
€37.2m €42.3m
€133.2m €156.1m
€229.3m €252.4m
Net Revenue Performance and Breakdown
€897.0m €791.8m
@constant FX @current FX
Group Growth
1H 2016
56.0%
33.9%
54.6%
9.9%
@constant FX @current FX
2Q 2016
Group Growth
57.4%
9.3%
56.0%
34.6%
Mono-brand Gross Merchandise Value1 Growth
10.8% 2.3% 13.1%
Mono-brandNet Revenue Growth
Impact of differentbooking for the
JV online store sales
Mono-brand GrossMerchandise Growth
13.7% 2.5% 16.2%
Mono-brandNet Revenue Growth
Impact of differentbooking for the
JV online store sales
Mono-brand GrossMerchandise Growth
1. For full glossary, please refer to slide 172
10.1%
35.5% 33.3%
9.4%
+11.4%
+13.1%
+21.5%
+15.7%
+14.5%
+21.7%
€450.8m €399.7m
+10.8%
+10.5%
+13.3%
+18.6% +17.2%
+12.8%
+13.7%
+10.1%
1H 2015 Pro-Forma
2Q 2015 Pro-Forma
1H 2016 vs 1H 2015 Pro-Forma 2Q 2016 vs 2Q 2015 Pro-Forma
+15.8% +17.0%
@constant FX
+13.5%
@constant FX
+17.9%
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
P A G E N U M B E R
(€m )
Italy 48.3 57.5 19.0% 19.0% 23.9 29.2 22.4% 22.5%
UK 124.6 135.2 8.6% 15.4% 66.8 70.2 5.1% 14.3%
Rest of Europe 208.6 238.4 14.3% 17.3% 99.6 117.5 18.0% 21.8%
North America 238.4 268.1 12.5% 12.5% 124.5 135.1 8.5% 10.9%
APAC 118.4 137.4 16.0% 17.5% 58.7 68.2 16.2% 19.4%
Rest of the World + NCR 53.4 60.4 13.0% 18.7% 26.3 30.7 16.4% 24.8%
Group Net Revenues 791.8 897.0 13.3% 15.8% 399.7 450.8 12.8% 17.0%
1. Not Country Related
30.1%
15.7% 15.0%
6.7%
26.4%
6.1%
1H 2015 1H 2016
29.9%
15.1% 15.3%
6.7% 6.4%
26.6%
2Q 2015
14.7%
6.6%
16.7%
31.1%
6.0%
24.9%
15.1%
6.8%
15.6%
30.0%
6.5%
2Q 2016
26.0%
Net Revenue Performance
Net Revenue Breakdown
Italy UK Rest of Europe APAC North America Rest of the World and NCR1
1H 2015 Pro-Forma
1H 2016 % Growth % Growth
Constant FX 2Q 2015
Pro-Forma 2Q 2016 % Growth
% Growth Constant FX
1
P A G E N U M B E R
9.1 9.1
9.0 10.3
8.0 8.6
26.1 28.0
1H 2016 1H 2015 Pro-Forma Restated3
1H 2016 1H 2015 Jun 2015 Jun 2016
1H 2015 Pro-Forma
354
335
375
346
2Q 2016 2Q 2015
8.2 8.3
8.9 9.7
7.6 8.4
24.7 26.4
+7.2%
+7.3%
+0.4%
+7.1%
+10.3%
+1.7%
-5.4% -7.6% +12.7%
2Q 2015 Pro-Forma Restated3
2Q 2016
2,307
2,600
2Q 2016 2Q 2015 Pro-Forma 1H 2016
3,324
3,945
1,619 1,955
+18.7% +20.8%
Monthly Unique Visitors (m)2 # Orders (‘000) - Group
Average Order Value (€) - Group Active Customers4 (‘000) - Group5
+14.1% +9.2%
1.Key performance indicators do not include the Joint Venture with Kering and the jimmychoo.com online flagship store 2.Source: Adobe Analytics for NET-A-PORTER.COM, MR PORTER.COM and THE OUTNET.COM; SiteCatalyst and Google Analytics for YOOX.COM in the first semester of 2015; Google Analytics for YOOX.COM in the first semester of
2016, THECORNER.COM, SHOESCRIBE.COM and the Online Flagship Stores ‚Powered by YOOX NET-A-PORTER GROUP‛ 3.1H 2015 monthly unique visitors have been restated to account for the change in data source used for YOOX.COM monthly unique visitors starting from November 2015. Specifically, monthly unique visitors for both 1H 2015 and 1H 2016
are now sourced from Google Analytics, instead of Google Analytics for the website and SiteCatalyst for the mobile site as previously used 4.Active Customer is defined as a customer who placed at least one order in the 12 preceding months 5. Includes Active Customers of the Online Flagship Stores ‚Powered by YOOX NET-A-PORTER GROUP‛
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
P A G E N U M B E R
(€m )
Net Revenues 791.8 897.0
growth 0.0% 13.3%
COGS (478.2) (542.2)
Gross Profit 313.6 354.9
% of Net Revenues 39.6% 39.6%
Fulfillment Excl. IPC (78.9) (88.5)
% of Net Revenues 10.0% 9.9%
Sales & Marketing Excl. IPC (92.2) (106.0)
% of Net Revenues 11.6% 11.8%
General & Administrative Excl. IPC (73.5) (81.0)
% of Net Revenues 9.3% 9.0%
Other Income / (Expenses) (2.5) (2.8)
Adjusted EBITDA 2
66.4 76.5
% of Net Revenues 8.4% 8.5%
Ordinary Depreciation & Amortisation (27.7) (24.4)
% of Net Revenues 3.5% 2.7%
Adjusted Operating Profit 2 38.7 52.2
% of Net Revenues 4.9% 5.8%
Income / (Loss) From Investment In Associates 0.1 0.2
Net Financial Income / (Expenses) 2.3 (1.0)
Adjusted Profit Before Tax 2
41.1 51.4
% of Net Revenues 5.2% 5.7%
Taxes (9.0) (14.4)
Adjusted Net Income 2 32.1 37.0
% of Net Revenues 4.1% 4.1%
Note: Depreciation & Amortisation included in Fulfilment, Sales & Marketing, General & Administrative have been reclassified and grouped under Ordinary Depreciation & Amortisation 1. The Adjusted P&L excludes non-cash costs associated with Stock Option Plans as well as the amortisation related to the Purchase Price Allocation process arising from the merger of YOOX GROUP and THE NET-A-PORTER GROUP 2. For full glossary, please refer to slide 172. For the description of the pro-forma adjustments, please refer to slide 3
1H 2016 1H 2015
Pro-Forma
P A G E N U M B E R
The merger between YOOX GROUP and THE NET-A-PORTER GROUP was structured as a merger by incorporation into YOOX GROUP of
Largenta Italia, a vehicle owning the entire share capital of THE NET-A-PORTER GROUP. This transaction qualified as a business combination
and, for the purposes of the provisions of IFRS 3, THE NET-A-PORTER GROUP was identified as the ‚purchased‛ entity
Out of the Purchase Price, ~€390m have been allocated to THE NET-A-PORTER GROUP’s intangible assets
For P&L reporting purposes, taxes have been adjusted by applying the notional UK corporate tax rate to the PPA-related amortisation as
required by IFRS 3 and IAS 12
~€390m1
Assets
6 years and 15 years
for Customer list and Brands, respectively
Useful Life PPA-related D&A
~35m2 annual charge for 2016-2021 period
~25m2 annual charge for 2022-2030 period
1. Converted in Euro at the EUR/GBP exchange rate as of 30 June 2016 2. Converted into Euro at the average EUR/GBP exchange rate for the period 1 January 2016 - 30 June 2016
P A G E N U M B E R
Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Ordinary Depreciation & Amortisation
1H 2016 1H 2015
Pro-Forma (€m )
Net Revenues 791.8 897.0
growth 13.3%
COGS (478.2) (542.2)
Gross Profit 313.6 354.9
% of Net Revenues 39.6% 39.6%
Fulfillment Excl. IPC (78.9) (88.5)
% of Net Revenues 10.0% 9.9%
Sales & Marketing Excl. IPC (92.2) (106.0)
% of Net Revenues 11.6% 11.8%
General & Administrative Excl. IPC (73.5) (81.0)
% of Net Revenues 9.3% 9.0%
Incentive Plan Costs (IPC) (6.2) (5.9)
Other Income / (Expenses) (2.5) (2.8)
Reported EBITDA 60.2 70.6
% of Net Revenues 7.6% 7.9%
Ordinary Depreciation & Amortisation (27.7) (24.4)
% of Net Revenues 3.5% 2.7%
PPA-related amortisation - (17.3)
% of Net Revenues - 1.9%
Reported Operating Profit 32.5 29.0
% of Net Revenues 4.1% 3.2%
Income / (Loss) From Investment In Associates 0.1 0.2
Net Financial Income / (Expenses) 2.3 (1.0)
Reported Profit Before Tax 34.9 28.2
% of Net Revenues 4.4% 3.1%
Taxes (8.5) (9.4)
Reported Net Income 26.4 18.8
% of Net Revenues 3.3% 2.1%
1H 2015 reported net income margin at 1.6%
assuming PPA-related D&A charge as 1H 2016
P A G E N U M B E R
Gross Profit by Business Line
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
% of division Net revenues
40.9%
1H 2016 1H 2015 Pro-Forma
42.0% 37.8%
1H 2016 1H 2015 Pro-Forma
36.7% 38.7%
1H 2016 1H 2015 Pro-Forma
36.1%
€181.2m
€206.0m
€101.4m €116.9m
€31.0m €32.0m
Gross profit is defined as net revenues less cost of goods sold (‚COGS‛), which includes shipping costs
P A G E N U M B E R
(€m )
Adjusted EBITDA 66.4 76.5
Net Financial Income / (Expenses) & Associates 2.4 (2.5)
Taxes paid (11.8) (10.9)
Change in Ordinary Working Capital (27.1) (31.8)
Capital Expenditure (46.9) (49.5)
Other (2.5) 6.1
Free Cash Flow (19.5) (12.1)
M&A-related Items (3.9)
Proceeds from Stock Option Exercise & Capital Increase 0.2 100.0
Translation Adj. (11.2)
Change in Net Financial Position (23.2) 76.7
1. Change in Ordinary Working Capital, Fixed Assets and Other calculated by converting values as at 30 June 2016 into Euro utilising 31 Dec 2015 exchange rates 2. Other mainly refers to exchange rate impact resulting from the consolidation of foreign subsidiaries and unrealised gain and losses 3. Translation Adjustments refer to the delta FX which arises from converting Ordinary Working Capital, Capital Expenditure and Other into Euro at the exchange rates as at 30 June 2016 and 31 Dec 2015
Cash Flow Statement
Net Financial Position Evolution
1H 2016 1H 2015
Pro-Forma
€62.1m
€76.5m
€(2.5)m €(10.9)m
€(31.8)m
€(49.5)m
€6.1m
€100.0m
€(11.2)m
€138.8m
Dec 2015Net Cash
AdjustedEBITDA
Net FinancialIncome /
(Expenses)& Associates
Taxespaid
Change inOrdinaryWorkingCapital
CapitalExpenditure
Other Capital Increase Translation Adj. June 2016Net Cash
1,2 3
1
1
1, 2
3
1
1
P A G E N U M B E R
(€m )
Inventories 526.5 531.6 561.8 (30.2)
Trade Receivables 26.5 31.3 25.3 6.0
Trade Payables (342.6) (353.3) (379.7) 26.4
Other Receivables / (Payables) (99.4) (113.6) (79.5) (34.1)
Ordinary Net Working Capital 110.9 96.1 127.9 (31.8)
as % of LTM Net Revenues 7.5% 5.8% 7.2%
Jun 20161
% of Net Revenues
€46.9m €48.1m
5.9% 5.4%
1H 2015 1H 2016
Net Working Capital
Capital Expenditure (at current FX)
Technology Operations Other
Dec 2015 Jun 2015 1H 2016
Investments back-loaded in 2H 2016
2016 capex expected at ~€140m (vs
previous guidance of €150m)
1. Inventories, Trade receivables, Trade Payables, Other Receivables/(Payables) calculated by converting 2016 values utilising exchange rates as at 31 Dec 2015 2. LTM Net Revenues at current exchange rates
@constant FX
2
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
€48.2m €58.3m
€140.9m €175.7m
€189.0m
€249.3m
Net Revenue Performance and Breakdown
€147.0m €175.3m
€472.9m €596.4m
€652.3m
€893.3m
€1,665.0m
€1,272.3m
@constant FX @current FX
Group Growth +20.8%
2014 2015
+19.2%
+36.9%
+30.9%
51.3%
37.2%
53.7%
10.5%
€483.3m
€378.2m
@constant FX @current FX
+19.2%
4Q 2014 4Q 2015
+24.7%
+27.8% Group Growth
50.0%
12.8%
51.6%
36.4%
Mono-brand Gross Merchandise Value1 Growth
19.2% 8.3% 27.5%
Mono-brandNet Revenue Growth
Impact of differentbooking for the
JV online store sales
Mono-brand GrossMerchandise Growth
2015 vs 2014
20.8% 8.4% 29.2%
Mono-brandNet Revenue Growth
Impact of differentbooking for the
JV online store sales
Mono-brand GrossMerchandise Growth
4Q 2015 vs 4Q 2014
1. For full glossary, please refer to slide 172
+26.1%
Multi-brand In-Season
Online Flagship Stores
Multi-brand Off-Season
+20.8%
+31.9%
11.6%
35.8%
37.3%
12.1%
P A G E N U M B E R
(€m )
Italy 92.7 110.9 19.7% 19.7% 29.1 35.8 23.1% 23.1%
UK 192.2 263.9 37.3% 23.6% 59.0 79.6 35.0% 22.9%
Rest of Europe 375.5 439.5 17.0% 21.2% 104.7 121.9 16.5% 19.2%
North America 351.1 503.1 43.3% 19.8% 113.1 151.0 33.5% 15.4%
APAC 176.9 242.3 36.9% 22.6% 49.5 66.5 34.3% 23.2%
Rest of the World + NCR 83.8 105.3 25.7% 14.5% 22.8 28.4 24.9% 15.3%
Group Net Revenues 1,272.3 1,665.0 30.9% 20.8% 378.2 483.3 27.8% 19.2%
1. Not Country Related
27.6%
15.1% 13.9%
6.6%
29.5%
7.3%
2014 2015
30.2%
15.8% 14.6%
6.3% 6.7%
26.4%
4Q 2014
13.1%
6.0%
15.6%
29.9%
7.7%
27.7%
13.8%
5.9%
16.5%
31.2%
7.4%
4Q 2015
25.2%
Net Revenue Performance
Net Revenue Breakdown
Italy UK Rest of Europe APAC North America Rest of the World and NCR1
2014 2015 % Growth % Growth
Constant FX 4Q 2014 4Q 2015 % Growth % Growth
Constant FX
1
P A G E N U M B E R
7.6 9.1
8.7 10.1
7.3 7.9
23.6 27.1
2015 2014
2015 2014 2014 2015
2014
317
352
325
357
4Q 2015 4Q 2014
10.1 10.4
9.6 11.1
7.8 8.5
27.4 30.0
+14.7%
+7.8%
+19.4%
+9.4%
+9.2%
+3.8%
+10.9% +9.7% +19.3%
4Q 2014 4Q 2015
2,111
2,519
4Q 2015 4Q 2014 2015
5,801
7,072
1,691 2,053
+21.9% +21.4%
Monthly Unique Visitors (m)2 # Orders (‘000) - Group
Average Order Value (€) - Group Active Customers3 (‘000) - Group4
+16.3% +15.3%
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
1.Key performance indicators do not include the Joint Venture with Kering and the jimmychoo.com online flagship store 2.Source: SiteCatalyst for NET-A-PORTER.COM, MR PORTER.COM and THE OUTNET.COM; SiteCatalyst and Google Analytics for YOOX.COM; Google Analytics for THECORNER.COM, SHOESCRIBE.COM and the Online Flagship Stores
"Powered by YOOX NET-A-PORTER GROUP ‚ 3.Active Customer is defined as a customer who placed at least one order in the 12 preceding months 4. Includes Active Customers of the Online Flagship Stores ‚Powered by YOOX NET-A-PORTER GROUP‛
P A G E N U M B E R
(€m )
Net Revenues 1,272.3 1,665.0 378.2 483.3
growth 30.9% 27.8%
COGS (773.5) (1,008.1) (222.5) (287.8)
Gross Profit 498.8 657.0 155.6 195.5
% of Net Revenues 39.2% 39.5% 41.2% 40.4%
Fulfillment Excl. Incentive Plan Costs (116.5) (165.7) (30.4) (44.5)
% of Net Revenues 9.2% 10.0% 8.1% 9.2%
Sales & Marketing Excl. Incentive Plan Costs (151.2) (203.5) (45.2) (62.4)
% of Net Revenues 11.9% 12.2% 11.9% 12.9%
General & Administrative Excl. Incentive Plan Costs (122.6) (150.1) (32.0) (36.0)
% of Net Revenues 9.6% 9.0% 8.5% 7.4%
Other Income / (Expenses) (2.5) (4.6) (0.5) (1.7)
Adjusted EBITDA 1 105.9 13 3 .1 47.5 50.9
% of Net Revenues 8.3% 8.0% 12.5% 10.5%
Incentive Plan Costs (20.2) (6.7) (5.2) (0.4)
Depreciation & Amortisation (46.9) (56.9) (13.5) (14.2)
% of Net Revenues 3.7% 3.4% 3.6% 2.9%
Operating Profit 38.8 69.5 28.8 36.2
% of Net Revenues 3.1% 4.2% 7.6% 7.5%
Income / (Loss) From Investment In Associates (0.7) 0.6 (0.1) 0.4
Net Financial Income / (Expenses) 4.2 0.8 3.1 (0.8)
Profit Before Tax 42.3 70.9 31.8 35.9
% of Net Revenues 3.3% 4.3% 8.4% 7.4%
Taxes (18.9) (17.4) (15.1) (8.9)
Net Income 23.4 53.4 16.7 27.0
% of Net Revenues 1.8% 3.2% 4.4% 5.6%
Adjusted Net Incom e 1 43 .3 59.7 21.8 27.3
% of Net Revenues 3.4% 3.6% 5.8% 5.7%
Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation 1. For full glossary, please refer to slide 172. For the description of the pro-forma adjustments, please refer to slide 3
4Q 2014 4Q 2015 2014 2015
P A G E N U M B E R
€105.9m
€(20.2)m €85.7m
€(46.9)m
€38.8m
€(0.7)m
€4.2m
€(18.9)m
€23.4m €19.9m €43.3m
AdjustedEBITDA
Incentive PlanCosts
EBITDA D&A EBIT Income / (Loss)From Associates
Net FinancialIncome /
(Expenses)
Taxes Net Income Incentive PlanCosts net ofrelated tax
effect
AdjustedNet Income
€133.1m
€(6.7)m
€126.4m
€(56.9)m
€69.5m €0.6m €0.8m
€(17.4)m
€53.4m €6.3m €59.7m
AdjustedEBITDA
Incentive Plan Costs
EBITDA D&A EBIT Income/ (Loss)From Associates
Net FinancialIncome /
(Expenses)
Taxes Net Income Incentive PlanCosts net ofrelated tax
effect
AdjustedNet Income
FY 2014
FY 2015
% of Net Revenues 8.0% 7.6% 3.6% 3.2%
% of Net Revenues 6.7% 3.1% 3.4% 1.8% 8.3%
4.2%
P A G E N U M B E R
4Q 2014
4Q 2015
% of Net Revenues 10.5% 10.4% 5.7%
€47.5m
€(5.2)m
€42.3m
€(13.5)m
€28.8m
€(0.1)m
€3.1m
€(15.1)m
€16.7m €5.1m €21.8m
AdjustedEBITDA
Incentive PlanCosts
EBITDA D&A EBIT Income / (Loss)From Associates
Net FinancialIncome /
(Expenses)
Taxes Net Income Incentive PlanCosts net ofrelated tax
effect
AdjustedNet Income
5.6%
% of Net Revenues 11.2% 7.6% 5.8% 4.4%
€50.9m
€(0.4)m
€50.4m
€(14.2)m
€36.2m €0.4m
€(0.8)m €(8.9)m
€27.0m €0.3m €27.3m
AdjustedEBITDA
Incentive PlanCosts
EBITDA D&A EBIT Income/ (Loss)From Associates
Net FinancialIncome /
(Expenses)
Taxes Net Income Incentive PlanCosts net ofrelated tax
effect
AdjustedNet Income
12.5%
7.5%
P A G E N U M B E R
€60.4m
€133.1m €1.3m
€(28.9)m €(12.2)m
€(83.7)m €(4.1)m €(19.4)m
€15.6m €62.1m
Dec 2014Net Cash
AdjustedEBITDA
Net FinancialIncome /
(Expenses)& Associates
Taxes Change inOrdinaryWorkingCapital
CapitalExpenditure
Other M&A RelatedItems
Proceeds fromStock Option
Exercise
Dec 2015Net Cash
1. Mainly refers to deferred tax assets, exchange rate impact resulting from the consolidation of foreign subsidiaries, fair value of derivative contracts and other reserves 2. Include Non-recurring Items relating to the merger with the NET-A-PORTER GROUP Limited and the delta capital injection vs Pro-forma assumptions
Cash Flow Statement
Net Financial Position Evolution
4Q 2015 2014 2015
Pro-Forma
4Q 2014 (€m )
EBITDA Excluding Incentive Plan Costs 105.9 133.1 50.9
Net Financial Income / (Expenses) & Associates 3.5 1.3 (0.4)
Taxes (18.9) (28.9) (12.2)
Change in Ordinary Working Capital (40.6) (12.2) 40.2
Capital Expenditure (54.8) (83.7) (21.1)
Other 1 9.7 (4.1) (5.4)
Free Cash Flow 4.8 5.5 n.a. 52.1
M&A Related Items 2 - (19.4) (8.9)
Proceeds from Stock Option Exercise 21.8 15.6 15.4
Change in Net Financial Position 26.6 1.7 n.a. 58.6
P A G E N U M B E R
(€m )
Inventories 449.1 531.6 (82.5) # (36.1)
Trade Receivables 19.5 31.3 (11.8) # (5.4)
Trade Payables (278.7) (353.3) 74.5 # 23.2
Other Receivables / (Payables) (105.9) (113.6) 7.6 # 58.5
Ordinary Net Working Capital 83.9 96.1 (12.2) # 40.2
as % of Net Revenues 6.6% 5.8%
FY 2015
% of Net Revenues
€54.8m
€83.7m
4.3% 5.0%
2014 2015
Net Working Capital
Capital Expenditure
Tech Operations Other
Dec 2015 Dec 2014
4.4%
€21.1m
4Q 2015
Balance Sheet Cash Flow
4Q 2014 4Q 2015
n.a.
P A G E N U M B E R
Multi-brand In-Season
Multi-brand Off-Season
Online Flagship Stores
Technology and Logistics Platform
Capitalise on past success focusing on existing and future EIPs (Extremely Important People) – Strengthening of personal shopping teams and further enhancing personal shopping experiences – Innovative brand building activities to drive acquisition and engagement – Development of localised approach
Enrichment of brand portfolio with new leading brands in Fall Winter Roll-out of in-house performance marketing team Enhancement of mobile offer
Launch of the new YOOX.COM release in September 2016 Coordinated buying for YOOX.COM and THE OUTNET.COM to improve economic terms Acceleration of international strategy leveraging online stores’ complementary geographical footprint Set up of internal centre of excellence for global performance marketing across both online stores Enhancement of mobile offer
Renewal of major contracts Launch of new online flagship stores Portfolio optimisation resulting in more resources allocated to partnerships with highest potential Further roll-out of omni-channel features Enhancement of mobile offer
Investments mainly devoted to: Lay the foundations to create a common techno-logistics platform across the Group’s stores and DCs
(including IBM) Set-up of new photo studios at Interporto (Bologna, Italy) Consolidation and expansion of HK DC Further enhancements of mobile offer
Net Revenue growth in the high teens at constant FX1
Adjusted EBITDA margin improvement
Approximately €140m of capital expenditure (vs previous guidance of €150m)
1. Average 2015 exchange rates
P A G E N U M B E R
YOOX NET-A-PORTER GROUP IN A NUTSHELL
2016 NINE-MONTH INTERIM TRADING STATEMENT
FAST FORWARD TO 2020: 2016 - 2020 5Y PLAN
2016 FIRST HALF RESULTS
2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
APPENDIX
P A G E N U M B E R
FURTHER ANALYSIS ON 2016 NINE-MONTH INTERIM TRADING STATEMENT
FURTHER ANALYSIS ON 2016 FIRST HALF RESULTS
FURTHER ANALYSIS ON 2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
2015 REPORTED RESULTS
ONLINE FLAGSHIP STORES POWERED BY YOOX NET-A-PORTER GROUP
SHAREHOLDER STRUCTURE
EXCHANGE RATES
P A G E N U M B E R
€117.0m €131.1m
€420.7m €496.2m
€644.0m €705.2m
Net Revenue Performance and Breakdown
€1,332.5m
€1,181.7m
9M 2016
54.5%
35.6%
52.9% 9.9%
Mono-brand Gross Merchandise Value2 Growth
12.0% 4.5% 16.5%
Mono-brandNet Revenue Growth
Impact of differentbooking for the
JV online store sales
Mono-brand Gross MerchandiseGrowth
9.9%
37.2%
+13.1%
+13.6%
+20.8%
+12.0%
+9.5%
+12.8%
+18.0%
9M 2015 Pro-Forma
9M 2016 vs 9M 2015 Pro-Forma
+16.1%
@constant FX
+17.3%
Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores
@constant FX @current FX Group Growth
Organic1
+15.4%
+17.1%
Organic3
+17.3%
1. Organic net revenue growth is calculated at constant exchange rates and at comparable perimeter by including net revenues of all online stores active at the end of each period, which were also active at the beginning of the same period of the previous year. Reported growth is calculated at current exchange rates and at actual perimeter
2. Gross Merchandise Value is defined as retail value of sales of all the Online Flagship Stores, including the JV online store sales, to final customers, net of returns and customer discounts. Set-up, design and maintenance fees for the Online Flagship Stores, accounted for within ‚Rest of the World and Not Country Related‛, are excluded
3. Gross merchandise value organic growth is calculated at constant exchange rates and at comparable perimeter by including gross merchandise value of all Online Flagship Stores active at the end of each period, which were also active at the beginning of the same period of the previous year. Reported growth is calculated at current exchange rates and at actual perimeter.
P A G E N U M B E R
FURTHER ANALYSIS ON 2016 NINE-MONTH INTERIM TRADING STATEMENT
FURTHER ANALYSIS ON 2016 FIRST HALF RESULTS
FURTHER ANALYSIS ON 2015 PRO-FORMA RESULTS AND 2016 OUTLOOK
2015 REPORTED RESULTS
ONLINE FLAGSHIP STORES POWERED BY YOOX NET-A-PORTER GROUP
SHAREHOLDER STRUCTURE
EXCHANGE RATES
P A G E N U M B E R
€76.5m
€(5.9)m
€70.6m
€(24.4)m
€(17.3)m
€29.0m €0.2m
€(1.0)m €(9.4)m
€18.8m
€18.2m €37.0m
AdjustedEBITDA
Incentive PlanCosts
("IPCs")
EBITDA OrdinaryD&A
PPA-relatedamortisation
EBIT Income/ (Loss)From
Associates
Net FinancialIncome /
(Expenses)
Taxes NetIncome
IPCs & PPARelated D&Anet of related
tax effects
AdjustedNet
Income
1H 2015 Pro-Forma
1H 2016
% of Net Revenues 8.5% 7.9% 4.1%
€66.4m
€(6.2)m
€60.2m
€(27.7)m
€32.5m €0.1m €2.3m
€(8.5)m
€26.4m €5.7m €32.1m
AdjustedEBITDA
Incentive PlanCosts
("IPCs")
EBITDA D&A EBIT Income / (Loss)From Associates
Net FinancialIncome /
(Expenses)
Taxes NetIncome
IPCs net ofrelated tax
effects
AdjustedNet
Income
2.1%
% of Net Revenues 7.6% 4.1% 4.1% 3.3% 8.4%
3.2%
P A G E N U M B E R
(€m )
Fulf i l lm ent (78.938) (88.518)
of which Incentive Plan Costs - 0.0% (0.017) 0.3%
Sales & Marketing (92.233) (106.790)
of which Incentive Plan Costs - 0.0% (0.754) 12.7%
General & Adm inistrative (79.761) (86.178)
of which Incentive Plan Costs (6.242) 100.0% (5.143 ) 87.0%
Incentive Plan Costs (6.242) 100.0% (5.914) 100.0%
EBITDA 60.18 8 70.603
% of Net Revenues 7.6% 7.9%
Incentive Plan Costs (6.242) (5.914)
Adjusted EBITDA 1 66.43 0 76.517
% of Net Revenues 8.4% 8.5%
1H 2015 Pro-Forma
% of Total
1H 2016
% of Total
1. For full glossary, please refer to slide 172. For the description of the pro-forma adjustments, please refer to slide 3
P A G E N U M B E R
(€m )
Overdrafts 121.0 37.8 83.2
Bank Loans 113.3 78.3 35.0
European Investment Bank 31.7 31.7 -
Financial Leases & Other 9.3 9.3 -
Total 275.3 157.1 118.2
(€m )
Cash and Cash Equivalents 130.3 225.2
Other Current Financial Assets 63.1 70.8
Current Financial Assets 193.4 295.9
Current Financial Liabilities (30.1) (70.9)
Long Term Financial Liabilities (101.2) (86.3)
(Net Financial Debt) / Net Cash 62.1 138.8
1H 2016 FY 2015
Long average maturity of outstanding debt (~70% of loans due between 2018 and 2020) at an average cost of debt of ~110bps over the 3/6 month Euribor
Available Drawn Granted
Net Financial Position
Overview of Debt Facilities at 30 June 2016
P A G E N U M B E R
(€m )
Net Working Capital 110.1 (23.8) 0.6 24.4
Non-Current Assets 1,915.7 2,013.2 1,914.3 (99.0)
Non-Current Liabilities (excl. financial liabilities) (8.9) (15.0) (90.8) (75.8)
Total 2,017.0 1,974.4 1,824.1 (150.3)
Net Financial Debt / (Net Cash) (35.0) (62.1) (138.8) (76.7)
Shareholders' Equity 2,052.0 2,036.5 1,962.9 (73.6)
Total 2,017.0 1,974.4 1,824.1 (150.3)
Change Dec 2015 Jun 2015 Pro-Forma Jun 2016
P A G E N U M B E R
FURTHER ANALYSIS ON 2016 NINE-MONTH INTERIM TRADING STATEMENT
FURTHER ANALYSIS ON 2016 FIRST HALF RESULTS
FURTHER ANALYSIS ON 2015 PRO-FORMA RESULTS
2015 REPORTED RESULTS
ONLINE FLAGSHIP STORES POWERED BY YOOX NET-A-PORTER GROUP
SHAREHOLDER STRUCTURE
EXCHANGE RATES
P A G E N U M B E R
(€m )
Overdrafts 66.0 3.5 62.5
Bank Loans 116.4 81.4 35.0
European Investment Bank 36.2 36.2 -
Financial Leases & Other 10.3 10.3 -
Total 228.8 131.3 97.5
(€m )
Cash and Cash Equivalents 118.6 130.3
Other Current Financial Assets 38.8 63.1
Current Financial Assets 157.4 193.4
Current Financial Liabilities (30.9) (30.1)
Long Term Financial Liabilities (66.1) (101.2)
(Net Financial Debt) / Net Cash 60.4 62.1
2015 2014
Long average maturity of outstanding debt (>80% of loans due between 1H 2017 and 2020) at an average cost of debt of 150bps over the 3/6 month Euribor
Available Drawn Granted
Net Financial Position
Overview of Debt Facilities at 31 December 2015
P A G E N U M B E R
(€m )
Fulf i l lm ent (116.578) (165.709) (30.445) (44.523)
of which Incentive Plan Costs (0.097) 0.5% (0.009) 0.1% (0.000) 0.0% (0.009) 1.9%
Sales & Marketing (151.246) (203.546) (45.173) (62.506)
of which Incentive Plan Costs (0.004) 0.0% (0.078 ) 1.2% - 0.0% (0.078 ) 17.8%
General & Adm inistrative (142.767) (156.711) (37.164) (36.355)
of which Incentive Plan Costs (20.13 1) 99.5% (6.63 3 ) 98.7% (5.159) 100.0% (0.3 53 ) 80.3%
Incentive Plan Costs (20.23 2) 100.0% (6.720) 100.0% (5.159) 100.0% (0.440) 100.0%
EBITDA 8 5.679 126.3 73 42.299 50.424
% of Net Revenues 6.7% 7.6% 11.2% 10.4%
Incentive Plan Costs (20.232) (6.720) (5.159) (0.440)
Adjusted EBITDA 1 105.911 13 3 .093 47.458 50.8 64
% of Net Revenues 8.3% 8.0% 12.5% 10.5%
FY 2014
% of Total
FY 2015
% of Total
4Q 2014
% of Total
4Q 2015
% of Total
1. For full glossary, please refer to slide 172. For the description of the pro-forma adjustments, please refer to slide 3
P A G E N U M B E R
FURTHER ANALYSIS ON 2016 NINE-MONTH INTERIM TRADING STATEMENT
FURTHER ANALYSIS ON 2016 FIRST HALF RESULTS
FURTHER ANALYSIS ON 2015 PRO-FORMA RESULTS
2015 REPORTED RESULTS
ONLINE FLAGSHIP STORES POWERED BY YOOX NET-A-PORTER GROUP
SHAREHOLDER STRUCTURE
EXCHANGE RATES
P A G E N U M B E R
(€m )
Net Revenues 524.3 922.7 76% 158.1 483.3
growth 15.1% 76.0% 16.0% 205.7%
COGS (336.8) (570.9) (99.9) (287.8)
Gross Profit 187.5 351.8 58.1 195.5
% of Net Revenues 35.8% 38.1% 36.8% 40.4%
Fulfillment (42.3) (84.9) (9.0) (44.5)
% of Net Revenues 8.1% 9.2% 5.7% 9.2%
Sales & Marketing (56.6) (113.4) (17.4) (62.5)
% of Net Revenues 10.8% 12.3% 11.0% 12.9%
General & Administrative (37.4) (69.9) (9.5) (36.4)
% of Net Revenues 7.1% 7.6% 6.0% 7.5%
Other Income / (Expenses) (2.5) (4.6) (0.5) (1.7)
EBITDA 48.8 79.0 61.8% 21.7 50.4
% of Net Revenues 9.3% 8.6% 13.7% 10.4%
Depreciation & Amortisation (25.6) (36.4) (7.7) (14.2)
% of Net Revenues 4.9% 3.9% 4.9% 2.9%
Non-recurring Items - (19.9) - (8.9)
Operating Profit 23.3 22.6 -2.6% 14.0 27.3
% of Net Revenues 4.4% 2.5% 8.9% 5.7%
Income / (Loss) From Investment In Associates (0.7) 0.6 1.3 (0.1) 0.4
Net Financial Income / (Expenses) 0.1 (1.6) (1.7) 1.0 (0.8)
Profit Before Tax 22.6 21.6 14.9 26.9
% of Net Revenues 4.3% 2.3% 9.4% 5.6%
Taxes (8.8) (5.0) (5.6) (6.5)
Net Income 13.8 16.6 20% 9.2 20.5
% of Net Revenues 2.6% 1.8% 5.8% 4.2%
4Q 2014 4Q 2015 2014 2015
Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation
Reported P&L consists of YOOX GROUP (standalone) consolidated financials for the period 1 January to 4 October 2015 and of YOOX NET-
A-PORTER GROUP financials from 5 October to 31 December 2015, compared to YOOX GROUP (standalone) consolidated financials for the
fiscal year 2014
P A G E N U M B E R
(€m )
Net Working Capital 45.3 (23.8) (69.1)
Non-Current Assets 82.4 2,013.2 1,930.8
Non-Current Liabilities (excl. financial liabilities) (0.4) (15.0) (14.6)
Total 127.3 1,974.4 1,847.1
Net Financial Debt / (Net Cash) (31.0) (62.1) (31.1)
Shareholders' Equity 158.3 2,036.5 1,878.2
Total 127.3 1,974.4 1,847.1
Change Dec 2015 Dec 2014
Reported Balance Sheet consists of YOOX NET-A-PORTER GROUP consolidated financials at 31 December 2015, compared to YOOX
GROUP (standalone) consolidated financials at 31 December 2014
P A G E N U M B E R
FURTHER ANALYSIS ON 2016 NINE-MONTH INTERIM TRADING STATEMENT
FURTHER ANALYSIS ON 2016 FIRST HALF RESULTS
FURTHER ANALYSIS ON 2015 PRO-FORMA RESULTS
2015 REPORTED RESULTS
ONLINE FLAGSHIP STORES POWERED BY YOOX NET-A-PORTER GROUP
SHAREHOLDER STRUCTURE
EXCHANGE RATES
P A G E N U M B E R
barbarabui.com
Online Flagship Stores ‚Powered by YOOX NET-A-PORTER GROUP‛
JVCo with Kering
alexanderwang.com
pomellato.com
moncler.com
trussardi.com
armani.com
dodo.it
dsquared2.com
moschino.com
emiliopucci.com
valentino.com
stoneisland.com
marni.com
emporioarmani.com
diesel.com
jilsander.com
brunellocucinelli.com
albertaferretti.com
justcavalli.com
y-3store.com
kartell.com
ysl.com
mcq.com
bottegaveneta.com
sergiorossi.com
alexandermcqueen.com
stellamccartney.com
balenciaga.com
missoni.com
redvalentino.com
lanvin.com
brioni.com
chloe.com
dunhill.com
karl.com
maisonmargiela.com
jimmychoo.com
isabelmarant.com
napapijri.com
OPENING SOON
P A G E N U M B E R
Feder ico Marchet t i 7 ,581,814 5.4% 5,164,667 3.9% 7,581,814 7.5% 5,164,667 5.7%
YNAP Managem ent team and other stock option holders 5,340,648 3.8% 5,340,648 5.3%
Sub-total 12,922,462 9.1% 5,164,667 3.9% 12,922,462 12.8% 5,164,667 5.7%
Richem ont 65,599,597 46.4% 65,599,597 49.1% 25,279,391 25.0% 22,693,459 25.0%
Renzo Rosso 5,186,321 3.7% 5,186,321 3.9% 5,186,321 5.1% 5,186,321 5.7%
Alabbar Enterprises 3,571,428 2.5% 3,571,428 2.7% 3,571,428 3.5% 3,571,428 3.9%
Fidelity International 2,897,225 2.0% 2,897,225 2.2% 2,897,225 2.9% 2,897,225 3.2%
Market 51,260,736 36.2% 51,260,736 38.3% 51,260,736 50.7% 51,260,736 56.5%
Tota l Outs tanding Shares 141,437,769 100.0% 133,679,974 100.0% 101,117,562 100.0% 90,773,836 100.0%
Treasury Shares 17,339 0.0% 17,339 0.0% 17,339 0.0% 17,339 0.0%
Tota l Issued Shares 141,455,108 100.0% 133,697,313 100.0% 101,134,901 100.0% 90,791,175 100.0%
Shareholders
Total Ordinary Capital (Voting)
Total Share Capital (Ordinary + Non-voting)
1 1
Updated as of 15 November 2016 1. Computed assuming that all of the 7,757,795 stock options granted under YOOX NET-A-PORTER GROUP S.p.A.’s stock option plans are exercised 2. Excludes Federico Marchetti 3. The number of ordinary shares is calculated assuming that Richemont converts 2,585,931 non-voting shares to ordinary shares (ratio of 1:1) in order to re-establish the maximum of 25% of shares with voting rights as stipulated by the New Bylaws
3
2
Diluted Current Diluted Current
P A G E N U M B E R
EUR USD 1.114 1.116 1.112 1.117 1.08 9 1.13 9 1.110 1.116
% yoy appreciation / (depreciation) vs. EUR 21.6% (0.2%) 19.2% (0.4%) 11.5% (5.5%) 0.8% 0.4%
EUR GBP 0.727 0.8 03 0.717 0.8 50 0.73 4 0.792 0.8 27 0.8 61
% yoy appreciation / (depreciation) vs. EUR 11.6% (9.4%) 10.7% (15.6%) 6.1% (8.1%) (13.9%) (14.2%)
EUR JPY 13 4.778 120.952 13 5.8 63 114.3 29 13 1.070 127.900 114.050 113 .090
% yoy appreciation / (depreciation) vs. EUR 3.5% 11.4% 1.4% 18.8% 10.8% 0.8% 20.1% 19.1%
EUR CNY 6.964 7.3 47 7.008 7.443 7.061 7.3 51 7.3 76 7.446
% yoy appreciation / (depreciation) vs. EUR 20.0% (5.2%) 16.6% (5.8%) 6.7% (9.3%) (6.0%) (4.4%)
EUR RUB 66.597 76.18 3 70.3 03 72.115 8 0.674 76.3 05 71.520 70.514
% yoy appreciation / (depreciation) vs. EUR (27.9%) (12.6%) (31.6%) (2.5%) (10.3%) (18.2%) (12.8%) 3.9%
EUR HKD 8 .640 8 .666 8 .162 8 .661 8 .43 8 8 .8 28 8 .614 8 .655
% yoy appreciation / (depreciation) vs. EUR 21.6% (0.3%) 25.9% (5.8%) 11.6% (5.5%) 0.7% 0.3%
EUR KRW 1,252.63 3 1,295.676 1,3 00.590 1,250.957 1,28 0.78 0 1,294.8 8 0 1,278 .48 0 1,229.760
% yoy appreciation / (depreciation) vs. EUR 12.7% (3.3%) 4.7% 4.0% 3.4% (7.9%) (2.1%) 8.0%
EUR AUD 1.463 1.505 1.53 3 1.472 1.490 1.48 1 1.493 1.466
% yoy appreciation / (depreciation) vs. EUR 0.9% (2.8%) (6.6%) 4.2% (0.5%) (4.4%) (2.5%) 8.7%
EUR CAD 1.404 1.475 1.454 1.456 1.512 1.474 1.43 8 1.469
% yoy appreciation / (depreciation) vs. EUR 5.6% (4.8%) (0.8%) (0.1%) (7.0%) (6.8%) (3.8%) 2.3%
Period Average End of Period
9M 2015 9M 2016 3Q 2015 Dec 2015 Mar 2016 3Q 2016 Jun 2016 Sep 2016
P A G E N U M B E R
Gross profit: Gross profit is defined as earnings before fulfilment costs, sales and marketing costs, general and administrative expenses, other operating income and expenses, depreciation and amortisation, non-recurring expenses, income/loss from investment in associates, financial income and expenses and income taxes. Since gross profit is not recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union, its calculation might not be standard, and the measurement criterion adopted by the Group might not be consistent with that adopted by other groups. Accordingly, the resulting figures may not be comparable.
EBITDA Pre Corporate Costs: EBITDA Pre Corporate Costs is defined as earnings before general and administrative expenses, other income and expenses, depreciation and amortisation, non-recurring expenses, income/loss from investment in associates, financial income and expenses and income taxes. Since EBITDA Pre Corporate Costs is not recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union, its calculation might not be standard, and the measurement criterion adopted by the Group might not be consistent with that used by other groups. Accordingly, the resulting figures may not be comparable. EBITDA Pre Corporate Costs corresponds to the operating profit by business line reported in the Group's consolidated financial statements.
Adjusted EBITDA: Adjusted EBITDA is defined as reported EBITDA before the non-cash costs associated with the existing Stock Option Plans
Adjusted Operating Profit: Adjusted Operating Profit is defined as reported Operating Profit before the non-cash costs associated with the existing Stock Option
Plans and the non-cash amortisation related to the Purchase Price Allocation (‚PPA‛) arising from the merger
Adjusted Profit Before Tax: Adjusted Profit Before Tax is defined as reported Profit Before Tax before the non-cash costs associated with the existing Stock
Option Plans and the non-cash amortisation related to the Purchase Price Allocation (‚PPA‛) arising from the merger
Adjusted Net Income: Adjusted Net Income is defined as reported net income before the non-cash costs associated with the existing Stock Option Plans, net of
their related tax effects, and before the non-cash amortisation related to the Purchase Price Allocation (‚PPA‛) arising from the merger, net of its related tax effect
Net working capital: Net working capital is defined as current assets, net of current liabilities, with the exception of cash and cash equivalents, bank loans and borrowings and other financial payables falling due within one year and financial assets and liabilities included under other current assets and liabilities. Net working capital is not recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union. The measurement criterion adopted by the Company might not be consistent with that adopted by other groups. Accordingly, the balance obtained by the Company may not be comparable with the figures obtained by other groups.
Gross Merchandise Value (‚GMV‛): GMV is defined as retail value of sales to final customers of all the Online Flagship Stores (including the JV), net of returns and customer discounts. Set-up, design and maintenance fees for the Online Flagship Stores, accounted for within ‚Rest of the World and Not Country Related‛, are excluded
NCR: Not Country Related
EIPs are defined as customers with a yearly net spend of over £7,500, converted into Euros at the FY2015 average EUR/GBP exchange rate of 0.726
P A G E N U M B E R
4. Bain & Company Altagamma, October 2015. ‚2015 Worldwide Markets Monitor‛, for size of 2015 online personal luxury goods market (€16.8bn) 5. Bain & Company, ‚Worldwide Luxury Market Monitor 2016 Spring Update‛ for estimate of 2015-2020 CAGR of online personal luxury goods.
STRATEGIC VISION
3. Bain & Company, May 2016. ‚Worldwide Luxury Market Monitor 2016 Spring Update‛ for estimate of 2015-2020 CAGR of online personal luxury goods; Bain & Company Altagamma, October 2015. ‚2015 Worldwide Markets Monitor‛, for size of 2015 online personal luxury goods market (€16.8bn)
FINANCIAL TARGETS
MULTI-BRAND IN-SEASON
1. Bain & Company, Fondazione Altagamma, October, 2015. ‚Luxury Goods Worldwide Market Study‛; McKinsey & Company, Altagamma Digital Luxury Experience Observatory, July, 2015. ‚Digital inside: get wired to deliver the ultimate luxury experience‛
2. McKinsey & Company, 2014. ‚Luxury shopping in the digital age‚ 3. McKinsey & Company, February, 2015. ‚The opportunity in online luxury fashion: Sales are rising, but what do consumers expect from a luxury digital
experience?‛ 4. Data relates to NET-A-PORTER EIPs in FY2015 5. Data relates to In-Season EIP data in FY2015 6. Boston Consulting Group, June 2016. ‚Global Wealth 2016 - Navigating The New Client Landscape‛ 7. Data based on internal surveys 8. Data relates to NET-A-PORTER and MR PORTER customer data in FY2015 9. Publicly available data on NET-A-PORTER, barneys.com, neimanmarcus.com, fartetch.com and mytheresa.com as of June 2016 10. McKinsey & Company, February, 2014. ‚A multifaceted future: The Jewellery industry in 2020‛ 11. Bain & Company, Fondazione Altagamma, October, 2015. ‚Luxury Goods Worldwide Market Study‛. Hard Luxury market size includes luxury watches and
luxury jewels 12. Knight Frank, 2016. ‚The Wealth Report‛
P A G E N U M B E R
THE MIDDLE EAST AND CHINA
2. Bain & Company, Fondazione Altagamma, October 15, 2012. ‘’Luxury Goods Worldwide Market Study’’ for 2012 market value; Bain & Company, Fondazione Altagamma, October 29, 2015. ‘’ Worldwide Markets Monitor’’ for 2015 market value; YOOX NET-A-PORTER GROUP’s calculations based on Euromonitor Passport (June 2016) estimates for the luxury personal goods market in the Middle East and Africa region
3. YOOX NET-A-PORTER GROUP’s calculations based on Euromonitor Passport (June 2016) estimates for internet penetration in GCC 4. YOOX NET-A-PORTER GROUP’s calculations based on Euromonitor Passport (June 2016) estimates for smartphone adoption in GCC
1. Bain & Company, Fondazione Altagamma, October, 2015. ‚Luxury Goods Worldwide Market Study‛ 2. McKinsey & Company, Altagamma Digital Luxury Experience Observatory July, 2015. ‚Digital inside: get wired to deliver the ultimate luxury experience‛ 3. Société Générale, September, 2015. ‚Luxury goods‛ 4. Bain & Company, Fondazione Altagamma, May, 2016. ‚Worldwide Luxury Market Monitor 2016 Spring Update‛ 5. Value Retail News, August, 2015. ‚2015 State of the Outlet Industry‛
MULTI-BRAND OFF-SEASON
ONLINE FLAGSHIP STORES POWERED BY YNAP
1. Deutsche Bank, 16 December 2015. ‚Consumer Discretionary & Luxury. Luxury Goods Outlook‛ 2. Bain & Company, Fondazione Altagamma, October, 2015. ‚Luxury Goods Worldwide Market Study‛; McKinsey & Company, Altagamma Digital Luxury
Experience Observatory, July, 2015. ‚Digital inside: get wired to deliver the ultimate luxury experience‛ 3. Reference period January - June 2016; for the analysis, stores within a range of 10 km from the customer’s ZIP code have been considered
T H I S D O C U ME N T I S P R O P R I E T A R Y A N D C O N F I D E N T I A L . N O P A R T O F T H I S D O C U ME N T MA Y B E D I S C L O S E D I N
A N Y MA N N E R T O A T H I R D P A R T Y W IT H O U T T H E P R I O R W R I TT E N C O N S E N T O F Y O O X N E T - A - P O R T E R G R O U P
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YOOX NET-A-PORTER GROUP
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