investor & analyst presentation...2015/11/23 · investor & analyst presentation german...

Investor & Analyst PresentationGerman Equity Forum, Frankfurt, Nov. 23rd – 25th, 2015

Dr. Cornelius Patt, CEO

Andreas Grandinger, CFO

Investor & Analyst Presentation EKF 201511 | page 2

This document includes supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of zooplus’ financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently.

This document contains statements related to our future business and financial performance and future events or developments involving zooplus that may constitute forward-looking statements. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of zooplus’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond zooplus’ control, affect zooplus’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of zooplus to be materially different from any future results, performance or achievements that may be expressed orimplied by such forward-looking statements or anticipated on the basis of historical trends. Further information about risks anduncertainties affecting zooplus is included throughout our most recent annual and interim reports, which are available on thezooplus website, www.zooplus.de. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of zooplus may vary materially from those described in the relevantforward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. zooplus neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments whichdiffer from those anticipated.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Safe Harbor Statement


194257

336

427

571

~ 740

> 900

> 1,100

2010 2011 2012 2013 2014 2015e 2016e 2017e

zooplus strong sales growth will continue and more than € 1.1 bn total sales should be reached already by 2017

Total sales 2010 – 2017e

+ 63

+ 79

+ 91

in € m,based on organic growth in European countries

33% 31% 27% 34%Total sales growth vs. PY

+ 144

22%

+ 169

> 160

> 200

22%

New customer sales (1st year)

Repeat customer sales

Total sales

Retention rate93%93%

94%91%

85%79%

81% 9M32%


In a large and fragmented niche market zooplus dominates online – and is rapidly catching up with the offline leaders

Market share zooplus and competitors 2014

~ 50 % market share zooplus online

~ 2.6 % market share online and offlineCAGR: 2011-14: 30%

Net sales:

€ 0.54 bn

Total pet supplies market Europe (incl. VAT):

~ € 25 bn (~ € 21 bn net)

CAGR: 2011-14: 2 - 3%

Source: Euromonitor, company information, zooplus estimation; 1 online share of total net sales

Growth 2014: 7%

Total net sales:

~ € 1.4 bn

Online 2014: ~ € 0.04 bn(+ 3% vs. PY)

Growth 2014: 10%

Total net sales:

€ 0.9 bnOnline: € ~ 0.01 bn (< 2%)1

Net sales:

~ € 0.25 bn

Other onliners:


» Net sales ~ € 710 m

» Double-digit sales growth rates in all countries

» zooplus market share of total market 3.4%

Net sales 2015e

HU

Source: zooplus net sales, unaudited data, rounded to 5 m EUR steps, growth rates compared to 2014, rounded to 5%p-steps; market shares based on extrapolation of Euromonitor 2013 market data, zooplus estimation 2% growth p.a.

70 m

Total market 2015

Net sales zooplus

DK, SE, FI, NO

D,A,CH

PL, CZ, SK, HU, RO, SI, HR, BG, TR, GR

ES, PT

zooplus is the online market leader in all geographies of Europe – with the widest possible base for further growth

NL, BE, LU

+30%

+45%

+30%

+40%

+30%

+50%

+20%

+25%

40 m

80 m

235 m70 m

120 m

40 m

55 m~710 m

zooplusmarket share

5.2%

1.6%

2.7%

2.6%

2.1%

4.1%

5.3%

2.9%

3.4%

21 bn

Size of total marketoffline and online (net sales)


94%

Customer loyalty – the winning factor of the business model – is further improving

Retention rates – Cohort analysis (Net sales incl. VAT in € m)

90 86 85 86

~ 510

55 46 45 44

~ 200

100

62 56 55

125

87 79

135

105

174

2011 2012 2013 2014 2015e

100%

84% 98%

63%90%

70%

Ø 79%

Ø 85%

<=2009<=2009<=2009

2010 a+1 2010 a+2 2010 a+3

2011 a

2011 a+1 2011 a+2

2012 a

2012 a+1

Ø 91%

2013 a

2014 a

<= 2009to

2014 a+1

91%

+ 3 %p

2015 a

2013 a+1

2012 a+2

2011 a+3

2010 a+4

<=2009

78%

99%

99%

101%

94%

Ø 94%

Reading example: 2011 a+1= sales of 2011’s new customers in 2012


Account value and customer account retention increasesignificantly with length of customer life

151

235 235 242256

273

354

a a+1 a+2 a+3 a+4 a+5 … a+10

Sales per active account 2014 (in €)

Cumulated sales per account created over ten years:

€ 1,290

100% (1) 77% 61% 54% 50% 46% 33%Remaining accounts

a: year of acquisition

(1): customers with at least one consecutive purchase after first transaction.


Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in 9M 2015

Gross Margin & Cost structure

4.8% 4.5% 3.7% 3.4% 3.3%

7.0%4.8%

4.0% 4.1% 3.9%

22.9%

21.7%20.2% 19.2% 18.7%

5.8%

2.5%

1.7%1.4% 1.2%

2011 2013 2014 9M 2015 Q3 2015

» Margin reduction mainly due to higher food share and exchange rate effects

» Extremely efficient marketing and new customer acquisition

» Further cost reduction in logistics

» Scaling effects in personnel

40.5%

29.6%

IT/Admin/Payment (incl. depreciation & interest)

Advertising/Marketing

Logistics Personnel

in % of total sales

28.1% 27.1%

31.2% 29.8%34.5%Gross Margin30.1%

…

33.5%

9M 201538.9%


Unit economics will further improve in logistics

20.2%18.1%

13.8% 14.1% 15.0%

23.9%

20.6%

zoopluslogistics

all-in

zoopluslogistics

onlyvariable

PL CZ DE ES ES

Logistics costs1 2014

1 Inbound & outbound logistics, line haul, distribution, packagingas a percentage of total sales

best-in-class

Q3 2015


zooplus continues on its profitable growth path

in € m

6.1

9.1

9M 2014 9M 2015

Earnings before tax (EBT)

+ 3.0

In % total sales

1.5 % 1.7 % 1.6 % 1.2 %

» Total sales growth + 32%

» Accessories sales growth impacted by FX development

» FX impact on purchasing costs compensated by higher other income and cost savings

» Start-up costs of new French fulfillment center compensated by additional efficiency gains.


zooplus shows largely positive results in repeat customer business, overall result impacted by customer acquisition

Net sales & EBT distribution 2014 (€ m) - unaudited

Net sales

% oftotal z+

EBT EBT-margin

174 32% - 6 - 3%

Net sales

% oftotal z+

EBT EBT-margin

369 68% 15 + 4%

New customers(sales in the year of acquisition)

Repeat customers(consecutive year’s sales)

Total zooplus

EBT zooplus 2014: € 8.8 m

» Further efficiency gains especially from continued built-up of pan-European logistics

» Scaling effects in IT/Admin and personnel

» Strategic advantages from size (purchasing power / private label)

Outlook:


Countries with optimized supply chains show EBT-margins for repeat customer business of 5% already today

Net sales

% oftotal z+

EBT EBT-margin

80 15% - 3 - 3%

94 17% - 3 - 3%

174 32% - 6 - 3%

Net sales

% oftotal z+

EBT EBT-margin

218 40% 11 + 5%

151 28% 4 + 3%

369 68% 15 + 4%

New customers(sales in the year of acquisition)

Repeat customers(consecutive year’s sales)

Direct / optimized supply chain 1

Indirect / intermediate

stage supply chain 2

Total

EBT zooplus 2014: € 8.8 m1 DE, AT, CH, NL, BE, PL, CZ2 Other countriesSource: zooplus data (unaudited)

Net sales & EBT distribution 2014 (€ m) - unaudited


Logistics capacity will be doubled in the next three years, product quality and efficiency will further improve

2013

Q1/2015

Fulfillment center (FC) Potential FC under investigation

2009

» FC in Chalon-sur-Saône started in Q1/2015

» Capacity increase in other existing fulfillment centers

» Overall capacity increase by 40% since beginning of 2015

» All FCs operated by partners; no capex for zooplus

» Orderrouting and packing algorithms intellectual property of zooplus

2000/2011

Q1/2015


zooplus logistics system is a complex network solutionbetween fulfillment centers and destination countries

Example Cat‘s Best Ökoplus (cat litter): article flow betweenfulfillment centers and country of destination for last 91 days

Country of

destination

Fulfillment

center

WRO

TIL

HOE

SBX

CHA


zooplus logistics structure is tailor-made for heavy and bulky products in inbound and outbound logistics

amazonlogistics(example)

zoopluslogistics

Source: zooplus

Source: DiePresse.com; dpa


zooplus shareholder structure is very much focused on growth and mid-term value creation

November 2015

Capital Research 12.68%

Ruane, Cunniff& Goldfarb

10.01%

Management 5.34%

Others 50.85%

Maxburg Beteili-gungen GmbH & Co. KG 13.67%

Deutsche Asset & Wealth4.23%

Source: information from notification of voting rights and company information; data as of November 19th, 2015

No. of shares: 6,991,478

Market cap: ~ € 910 m

Jan 2nd, 2015: € 66.70

Nov 19th, 2015: € 130.00

Delta: + 95%

Financial calendar 2016:

Jan 28th:Preliminary sales 2015

March 23rd:Annual results 2015

April 21st:Preliminary sales Q1 2016

May 19th:Q1 report 2016

Pelham Capital 3.22%


Liquidity in the zooplus stock has strongly increased

Ø per day€ 417 k

2014 2015 Daily tradingvolume in €

Source: Deutsche Börse (xetra), data until October 30th, 2015

Ø per day€ 1,500 k

Burda < 50% share in zooplus

zooplus capitalincrease


Current guidance for total sales and EBT

2015e ~ 740 + 30 %

Total sales (€ m)

2014 571 + 34 %

EBT (€ m)

~ 12

8.8

Guidance

Net sales (€ m)

~ 710 + 31 %

543 + 33 %


In summarizing : zooplus – a sustainable growth story

Attractive market with further growth potential (market volume ~ € 25 bn)

Market leader in e-commerce, closing up on the biggest offliners

Integrated logistics-structure for pan-European sourcing and fulfilment

Growth driven by a large and growing loyal customer base

Cost leadership – online and across all channels

Experienced management team with a share in the company and with a clear and focused strategy

1.

2.

3.

4.

5.

6.

Well prepared for future value creation


Back-up: Key Financials


Key Financials Q3 2015

P&Lin € m

Q3 2015 Q3 2014 ∆∆∆∆ abs ∆∆∆∆%p

Total sales 187.2 146.4

∆ abs. 40.8

∆ in % 27.8%

COGS130.9

69.9%100.8

68.9%30.1

1.1%p

Logistics35.1

18.8%29.2

19.9%5.9

-1.2%p

Payment1.7

0.9%1.6

1.1%0.1

-0.2%p

Customer acquisition2.2

1.2%2.6

1.8%-0.4

-0.6%p

Personnel6.1

3.3%5.1

3.5%1.0

-0.2%p

G&A5.3

2.8%3.9

2.7%1.4

0.1%p

EBITDA5.8

3.1%3.1

2.1%2.7

1.0%p

I&DA0.3

0.1%0.3

0.2%0.0

-0.1%p

EBT5.5

2.9%2.8

1.9%2.7

1.0%p


Profit & Loss 9M 2015

in € m9M 2015 9M 2014

abs % abs %

Sales 511.0 96.2% 384.8 95.4%

Other income 20.2 3.8% 18.5 4.6%

Total sales 531.2 100.0% 403.4 100.0%

Cost of materials -372.8 -70.2% -276.0 -68.4%

Personnel costs -18.1 -3.4% -15.6 -3.9%

Depreciation -0.6 -0.1% -0.5 -0.1%

Other expenses -130.5 -24.6% -104.8 -26.0%

thereof logistics / fulfillment (-102.2) -19.2% (-81.9) -20.3%

thereof marketing (-7.5) -1.4% (-7.0) -1.7%

thereof payment (-5.5) -1.0% (-4.9) -1.2%

thereof other costs (-15.3) -2.9% (-11.0) -2.7%

Earnings before interest and taxes (EBIT) 9.3 1.7% 6.4 1.6%

Financial income 0.0 0.0% 0.0 0.0%

Financial expenses -0.2 0.0% -0.3 -0.1%

Earnings before taxes (EBT) 9.1 1.7% 6.1 1.5%

Taxes on income -3.4 -0.6% -2.3 -0.6%

Consolidated net result 5.7 1.1% 3.8 0.9%

Differences from currency translation -0.3 -0.1% 0.1 0.1%

Hedge reserve -1.2 -0.2% 1.3 0.3%

Items that may be relclassified subsequently to profit or loss -1.5 -0.3% 1.4 0.4%

Comprehensive income 4.2 0.8% 5.2 1.3%

Earnings per share in €

basic 0.82 - 0.62 -

diluted 0.80 - 0.60 -


Balance Sheet as of Sep. 30th, 2015

Assets Equity and Liabilities

in € m Sep. 30th, 2015 Dec. 31st, 2014 ∆∆∆∆ abs

A. Non-current assets

I. PP&E 1.2 0.8 0.5

II. Intangible assets 9.4 8.6 0.8

III. Other financial assets 0.0 0.0 0.0

IV. Deferred tax assets 2.7 4.2 -1.5

Total non-current assets 13.4 13.6 -0.2

B. Current assets

I. Inventories 60.6 65.0 -4.4

II. Advance payments 2.4 0.5 1.9

III. Accounts receivable 15.2 12.1 3.1

IV. Other current assets 7.4 13.1 -5.7

V.Derivative financialinstruments

0.5 2.3 -1.8

VI. Cash and cash equivalents 43.4 32.0 11.4

Total current assets 129.5 125.0 4.5

142.9 138.6 4.3

in € m Sep. 30th, 2015 Dec. 31st, 2014 ∆∆∆∆ abs

A. Equity

I. Capital subscribed 7.0 7.0 0.0

II. Capital reserves 92.6 92.0 0.6

III. Other reserves 0.2 1.7 -1.5

IV. Profit and Loss carried forward -8.7 -14.5 5.8

Total equity 91.0 86.2 4.8

B. Non-current liabilities 1.6 1.2 0.3

C. Current liabilities

I. Accounts payable 19.3 23.4 -4.1

II. Other current liabilities 23.4 20.1 3.3

III. Tax liabilites 0.8 2.0 -1.2

IV. Provisions 4.9 4.1 0.8

V. Deferred income 1.9 1.5 0.4

Total current liabilities 50.3 51.1 -0.8

142.9 138.6 4.3


Cash Flow 9M 2015

EBT 9.1 6.1

Cash flow from operating activities 13.6 -0.9

Cash flow from investing activities -1.9 -3.4

Cash flow from financing activities 0.0 10.4

Net change of cash and cash equivalents 11.5 6.1

Cash on hand, bank deposits, cheques 43.4 11.8

in € m 9M 2015 9M 2014


Profit & Loss 2014

in € m2014 2013

abs % abs %

Sales 543.1 95.1% 407.0 95.3%

Other income 27.8 4.9% 19.9 4.7%

Total sales 570.9 100.0% 426.9 100.0%

Cost of materials -393.0 -68.8% -279.8 -65.5%

Personnel costs -21.2 -3.7% -19.3 -4.5%

Depreciation -0.7 -0.1% -0.7 -0.2%

Other expenses -146.8 -25.7% -123.0 -28.8%

thereof logistics / fulfillment (-115.1) -20.2% (-92.7) -21.7%

thereof marketing (-9.9) -1.7% (-10.7) -2.5%

thereof payment (-6.9) -1.2% (-6.2) -1.4%

thereof other costs (-14.9) -2.6% (-13.4) -3.1%

Earnings before interest and taxes (EBIT) 9.2 1.6% 4.2 1.0%

Financial income 0.0 0.0% 0.0 0.0%

Financial expenses -0.4 -0.1% -0.4 -0.1%

Earnings before taxes (EBT) 8.8 1.5% 3.8 0.9%

Taxes on income -3.5 -0.6% -2.0 -0.5%

Consolidated net result 5.2 0.9% 1.8 0.4%

Differences from currency translation 0.0 0.0% 0.1 0.0%

Hedge reserve 1.6 0.3% 0.1 0.0%

Items that may be relclassified subsequently to profit or loss 1.6 0.3% 0.2 0.0%

Comprehensive income 6.8 1.2% 1.9 0.5%

Earnings per share in €

basic 0.83 - 0.29 -

diluted 0.80 - 0.80 -


Balance Sheet as of Dec. 31st, 2014

Assets Equity and Liabilities

in € m Dec. 31st, 2014 Dec. 31st, 2013 ∆∆∆∆ abs

A. Non-current assets

I. PP&E 0.8 0.5 0.3

II. Intangible assets 8.6 4.9 3.7

III. Financial assets 0.0 0.0 0.0

IV. Deferred tax assets 4.2 6.9 -2.7

Total non-current assets 13.6 12.5 1.1

B. Current assets

I. Inventories 65.0 43.7 21.3

II. Advance payments 0.5 0.3 0.2

III. Trade receivables 12.1 10.8 1.3

IV. Other current assets 13.1 10.9 2.2

V.Derivative financialinstruments

2.3 0.0 2.3

VI. Cash and cash equivalents 32.0 5.6 26.4

Total current assets 125.0 71.3 53.7

138.6 83.7 54.9

in € m Dec. 31st, 2014 Dec. 31st, 2013 ∆∆∆∆ abs

A. Equity

I. Capital subscribed 7.0 6.1 0.9

II. Capital reserves 92.0 50.3 41.7

III. Other reserves 1.7 0.0 1.7

IV. Profit and Loss carried forward -14.5 -19.7 5.2

Total equity 86.2 36.7 49.5

B. Non-current liabilities 1.2 0.5 0.7

C. Current liabilities

I. Trade payables 23.4 16.2 7.2

II. Financial liabilities 0.0 13.0 -13.0

III.Derivative financialinstruments

0.0 0.1 -0.1

IV. Other current liabilities 20.1 12.7 7.4

V. Tax liabilites 2.0 0.8 1.2

VI. Provisions 4.1 2.7 1.4

VII. Deferred income 1.5 1.0 0.5

Total current liabilities 51.1 46.5 4.6

138.6 83.7 54.9


Cash Flow 2014

EBT 8.8 3.8

Cash flow from operating activities 2.8 -3.5

Cash flow from investing activities -4.7 -4.6

Cash flow from financing activities 28.1 10.6

Net change of cash and cash equivalents 26.3 2.7

Cash on hand, bank deposits, cheques 32.0 5.6

in € m 2014 2013

investor & analyst presentation...2015/11/23 · investor & analyst presentation german...

Documents