investor & analyst presentation...investor & analyst presentation201608 | page 3...
TRANSCRIPT
Investor & Analyst PresentationSemi-Annual Report 2016
Dr. Cornelius Patt, CEO
August 18th, 2016
Investor & Analyst Presentation 201608 | 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
Investor & Analyst Presentation 201608 | page 3
zooplus profitable sales growth continued in H1 2016
» Sales increased by 29% to € 428 m
− European market leader position in online retailing sustained
− Double-digit growth rates in all 30 European markets
» Further improvement of cost structure
− Improvements in all major cost positions support cost leadership position in the category
» Positive result before tax (EBT) of € 5.1 m
− Increased from € 3.6 m in prior year
» Positive free cash flow of € 8.7 m
− Increased from € 5.8 m in prior year
» Sales guidance for 2016 raised, EBT guidance confirmed
− Sales of more than € 900 m expected (before: more than € 875 m)
− Earnings before tax (EBT) between € 14 m and € 18 m
Investor & Analyst Presentation 201608 | page 4
+88
+67
+136
Repeat customer sales
New customer sales
+168
2010
178
+74
245
2016e
>900
2015
711
2014
543
2013
407
2012
319
2011
>189
Sales growth vs. PY
zooplus’s strong sales growth will continue and more than € 900 m sales should be reached in 2016
Sales 2010 – 2016e
in € m,Based on organic growth in European countries
(1st year)
81%79%
85%
91%
94%
93%
38% >26%31%33%28%30%
Investor & Analyst Presentation 201608 | page 5
33%
Food Non-Food
11%
+29%
333
H1 2015
428
H1 2016
in € m
Sales have seen another strong increase in H1 2016
Sales (€ m) Sales growth by category (in % vs. PY)
Investor & Analyst Presentation 201608 | page 6
16%
Food Non-Food
35%168
+31%
221
Q2 2015
in € m
Q2 2016
Sales growth in Q2 2016 has even been stronger than in Q1 2016
Sales (€ m) Sales growth by category (in % vs. PY)
Investor & Analyst Presentation 201608 | page 7
Strong quarter on quarter sales development
in € m
Quarter 1 Quarter 2222 Quarter 3333 Quarter 4444
+ 43.2
92.8
207.8
164.6
120.7
97.4
124.1
168.3
102.5
140.0
178.0
114.3
158.3
200.3
2013201320132013 2014201420142014 2015201520152015 2013201320132013 2014201420142014 2013201320132013 2014201420142014 2013201320132013 20142014201420142015201520152015 201520152015201520152015201520152016201620162016
220.6
+ 52.3
2016201620162016
Investor & Analyst Presentation 201608 | page 8
Markets continue to be price competitive – zooplus well prepared to defend its strategic position
» Continued focus on sustainable dog / cat food customers for higher life-time-value
» Ongoing strong competition in the markets
» zooplus will defend its high customer retention
H1 2016
1 Share of food on sales 3 Gross margin + other income on sales2 Sales - CoGS
Product mix1
H1 2016
+2.9%p
82.0%
H1 2015
79.1%
Gross margin2
In % of sales In % of sales
Total margin3
H1 2016
-2.5%p
27.4%
H1 2015
24.9%
H1 2016H1 2015
-1.1%p
30.7% 29.6%
Investor & Analyst Presentation 201608 | page 9
Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in H1 2016
Total margin & Cost structure (in % of sales)
Total margin1
H1 2016
1 Gross margin + other income on sales
» Extremely efficient marketing and new customer acquisition
» Further cost reduction in logistics and payment
» Scaling effects in personnel & IT /Admin
29.6%30.7%
20.1% 19.7%
2.9%3.1%
H1 2015
29.6%
3.6%
-1.1%p
H1 2016
28.4%
3.2%
PaymentLogistics IT /Admin / (incl. depreciation & interest) PersonnelAdvertising / Marketing
1.6%1.6%
1.1% 1.0%
Investor & Analyst Presentation 201608 | page 10
2.9% 3.5%3.6%
5.6%
2.9%
24.0%
22.8%21.2%
19.7%20.1%
2.6%
6.1%35.2%
2013
3.9%4.7%
2011
42.4%
5.0%
28.4%
H1 2016
3.2%
2015
29.7%
3.5%
2014
31.1%
H1 2016 continues in the strong effort to further improve cost leadership position in the category
…
Total margin & Cost structure (in % of sales)
1 gross margin + other income on sales
32.8% 31.6%36.1%Total margin140.9% 29.6%
IT / Admin / (incl. depreciation & interest) PersonnelPaymentAdvertising/ Marketing Logistics
1.7%1.5%
1.8%
1.3%
1.5%
1.1%
1.6%
1.0%
Investor & Analyst Presentation 201608 | page 11
zooplus EBITDA and earnings before tax (EBT) above prior year
EBITDA (€ m) EBT (€ m)
4.1
H1 2015
5.7
H1 2016
+1.6
3.6
H1 2015
+1.5
5.1
H1 2016
1.2% 1.3% 1.1% 1.2%in % of sales in % of sales
Investor & Analyst Presentation 201608 | page 12
Free cash flow continues to be positive in H1 2016
Free Cash Flow (€ m)
H1 2015 H1 2016
5.8
Cash Flows from investing
activities
-1.4
Cash Flows from operating
activities
7.2
Free Cash Flow
10.6
Free Cash Flow
8.7
Cash Flows from operating
activities
-1.9
Cash Flows from investing
activities
Investor & Analyst Presentation 201608 | page 13
zooplus dominates online – and is rapidly catching up with the offline leaders
Market share zooplus and competitors 2015
CAGR: 2011-15: + 30%Sales 2015: € 0.7 bn
Total pet supplies market Europe (incl. VAT):
~ € 25 bn (~ € 21 bn net)CAGR: 2011-15: 2 - 3%
Source: Euromonitor, company information, zooplus estimation;
Sales 2015 :
~ € 1.5 bn (+ 7%)
Online: ~ € 0.045 bn(+ 2% vs. PY)
Sales 2015:
Online: ~ € 0.02 bn
Sales 2015:
Other onliners:
Fressnapf
~ € 1.0 bn (+ 7%)
Pets at Home
n/a
~ 50 % market share zooplus online
~ 3.4 % market share online and offline
Investor & Analyst Presentation 201608 | page 14
Sales 2016
HU
Source: zooplus sales, unaudited data, growth rates compared to H1 2015 rounded to 5%p-steps; market shares based on extrapolation of Euromonitor 2013 market data, zooplus estimation 2% growth p.a.
67 m
Total market 2015
Sales zooplusin 2015
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
+40%
+35%
+35%
+35%
+30%
+45%
+20%
+20%
42 m
84 m
236 m68 m
119 m
38 m
57 m
711 mzooplusmarket sharein 2015
5.3%
1.6%
2.8%
2.6%
2.1%
4.1%
5.5%
3.0%
3.4%
21 bn
Size of total market offline and online (sales)
» Sales H1 2016: € 428 m, sales growth rate +29%
» Double-digit sales growth rates in all countries
» Full year 2016e > € 900 m UK, IE
IT
FR
Sales growth in H1 2016 rounded to 5%p steps
Investor & Analyst Presentation 201608 | page 15
Logistics capacity will be increased still in 2016 – next step is a new fulfillment center in Antwerp
2013
2015
Fulfillment center (FC) Potential FC under investigation
2009
» New fulfillment center planned for Q4 2016 in Antwerp, Belgium with focus on container products and fast moving products
» Capacity increase in other existing fulfillment centers
» Further locations still in planning phase
» All FCs operated by partners; no capex for zooplus
» Orderrouting and packing algorithms intellectual property of zooplus
2000/2011
2015
Q4/2016
New fulfillment center Antwerp
Investor & Analyst Presentation 201608 | page 16
UK Brexit decision and GBP exchange rate development not favorable to zooplus in short term
» UK is the biggest market for pet supplies in Europe
» Around 10% of zooplus’ sales are generated in the UK
» zooplus will continue to strongly develop it’s business in the UK
» However, devaluation of the GBP negatively affects zooplus’s UK sales and margins from a group perspective – since Nov 2015 GBP to EUR has dropped by 16%
» Sourcing advantages from GBP devaluation are limited
03/1602/1601/16 04/1611/15 06/1612/15 07/16
1,20
1,30
1,40
05/16
FX-rate 1 GBP = x EUR
-16%
Investor & Analyst Presentation 201608 | page 17
Strong impact on futureprofitability
Continued focus on retention and strong sales growth drives mid-term profitability
Strong sales growth means:
» Increased distance towards competition / better strategic position
» Better purchasing terms in all areas (CoGS & other services)
» More efficiency gains
» More scale in overhead
Retention Sales growth
Cost structure Profitability
Investor & Analyst Presentation 201608 | page 18
EBT (€ m)
2016e
Sales guidance for full year 2016 raised - EBT guidance confirmed
2015
14 - 18
12.7
Guidance
Sales (€ m)
> 900 > +26 %
711 + 31 %
Investor & Analyst Presentation 201608 | page 19
H1 2016 results
Q & A
Investor & Analyst Presentation 201608 | page 20
Back-up: Key Financials
Investor & Analyst Presentation 201608 | page 21
Key Financials Q2 2016
P&Lin € m
Q2 2016 Q2 2015 ∆∆∆∆ abs ∆∆∆∆%p
Sales 220.6 168.3
abs. 52.3
∆ in % 31.1%
Other income11.3
5.1%6.0
3.6%5.3
1.6%p
COGS167.1
75.7%123.4
73.3%43.7
2.4%p
Logistics43.5
19.7%33.3
19.8%10.2
-0.1%p
Payment2.2
1.0%1.9
1.1%0.3
-0.2%p
Customer acquisition3.4
1.5%2.4
1.4%1.0
0.1%p
Personnel7.1
3.2%6.2
3.7%0.9
-0.5%p
G&A6.2
2.8%4.8
2.8%1.5
0.0%p
EBITDA2.5
1.1%2.3
1.4%0.2
-0.2%p
I&DA0.3
0.1%0.3
0.1%0.0
0.0%p
EBT2.2
1.0%2.1
1.2%0.1
-0.2%p
EPS in EUR (basic) 0.19 0.17
Balance Sheet
Total Assets 171.6
Equity (Ratio in %)97.7
56.9%
Investor & Analyst Presentation 201608 | page 22
Profit & Loss H1 2016
in € mH1 2016 H1 2015
abs % abs %
Sales 428.4 100.0% 333.0 100.0%
Other income 20.2 4.7% 11.1 3.3%
Cost of materials -321.7 -75.1% -241.9 -72.6%
Personnel costs -13.8 -3.2% -12.0 -3.6%
Depreciation -0.5 -0.1% -0.4 -0.1%
Other expenses -107.4 -25.1% -86.1 -25.9%
thereof logistics / fulfillment (-84.3) -19.7% (-67.0) -20.1%
thereof marketing (-6.7) -1.6% (-5.3) -1.6%
thereof payment (-4.4) -1.0% (-3.8) -1.1%
thereof other costs (-12.0) -2.8% (-10.0) -3.0%
Earnings before interest and taxes (EBIT) 5.2 1.2% 3.7 1.1%
Financial income 0.0 0.0% 0.0 0.0%
Financial expenses -0.1 0.0% -0.1 -0.0%
Earnings before taxes (EBT) 5.1 1.2% 3.6 1.1%
Taxes on income -2.1 -0.5% -1.6 -0.5%
Consolidated net result 3.1 0.7% 2.1 0.6%
Differences from currency translation -0.1 -0.0% 0.1 0.0%
Hedge reserve 1.3 0.3% -1.0 -0.3%
Items that may be reclassified subsequently to profit or loss 1.1 0.3% -0.9 -0.3%
Comprehensive income 4.2 1.0% 1.2 0.3%
Earnings per share in €
basic 0.44 - 0.30 -
diluted 0.43 - 0.29 -
Investor & Analyst Presentation 201608 | page 23
Balance Sheet as of June 30st, 2016
Assets Equity and Liabilities
in € m June 30st, 2016 Dec. 31st, 2015 ∆∆∆∆ abs
A. Non-current assets
I. PP&E 2.3 1.4 0.9
II. Intangible assets 8.5 8.0 0.4
III. Other financial assets 0.0 0.0 0.0
IV. Deferred tax assets 0.0 1.8 -1.8
Total non-current assets 10.8 11.3 -0.5
B. Current assets
I. Inventories 69.0 74.5 -5.5
II. Advance payments 4.0 1.4 2.5
III. Accounts receivable 19.0 13.6 5.4
IV. Other current assets 12.6 18.3 -5.6
V.Derivative financialinstruments
2.0 0.6 1.4
VI. Cash and cash equivalents 54.2 45.5 8.7
Total current assets 160.8 154.0 6.8
171.6 165.3 6.3
in € m June 30st, 2016 Dec. 31st, 2015 ∆∆∆∆ abs
A. Equity
I. Capital subscribed 7.0 7.0 0.0
II. Capital reserves 93.0 92.8 0.2
III. Other reserves 1.1 0.0 1.1
IV. Profit and Loss carried forward -3.4 -6.5 3.1
Total equity 97.7 93.2 4.4
B. Non-current liabilities 1.8 1.8 0.0
C. Current liabilities
I. Accounts payable 33.6 35.3 -1.7
IIDerivative financialinstruments
0.0 0.5 -0.5
III. Other current liabilities 25.2 23.4 1.8
IV. Tax liabilites 0.9 0.7 0.2
V. Provisions 10.2 8.4 1.8
VI. Deferred income 2.2 2.0 0.2
Total current liabilities 72.1 70.3 1.8
171.6 165.3 6.3
Investor & Analyst Presentation 201608 | page 24
Cash Flow H1 2016
in € m H1 2016 H1 2015
EBT 5.1 3.6
Cash flow from operating activities 10.6 7.2
Cash flow from investing activities -1.9 -1.4
Free cash flow 8.7 5.8
Cash flow from financing activities 0.1 0.0
Net change of cash and cash equivalents 8.7 5.8
Cash on hand, bank deposits 54.2 37.8