Slide 1: Investor Presentation May 2022
Investor Presentation LOUGLAS May 2022
Slide 2: Douglas Investment Highlights
DOUGLAS INVESTMENT HIGHLIGHTS Europe’s leading and Douglas is Europe’s #1 A diversified leader in large, innovative online beauty premium beauty destination2 structurally growing and platform with ~€1.2bn sales1, resilient European beauty growing at c.30% CAGR for market the last 10 years Winning an
Slide 3: Douglas is the leading beauty platform in Europe's premium beauty market
DOUGLAS IS THE LEADING BEAUTY PLATFORM IN EUROPE'S PREMIUM BEAUTY MARKET IN 2019 Premium sales, 2019 (€m) We generate Ca. almost same premium sales as Douglas’ 2,550 core geo- the next 3 competitors in graphies2 Douglas’ #1 position3 total in core drives future geographies2 economies of scale, attra
Slide 4: Douglas: Synonym for beauty across Europe
DOUGLAS: SYNONYM FOR BEAUTY ACROSS EUROPE Customer The eminent perception of Douglas brand Douglas2 power drives traffic Unmatched brand awareness1 and customer acquisition at Truly a Synonym for beauty in all of its low cost markets unique brand… Highly trusted ... with leading Premium image awaren
Slide 5: Omnichannel champion with growing share of most valuable omnichannel customers
OMNICHANNEL CHAMPION WITH GROWING SHARE OF MOST VALUABLE OMNICHANNEL CUSTOMERS Share of customers shopping ~2x omnichannel (%) While the overall share of omnichannel customers is increasing, the > 2x > 2x percentage is almost twice as high among 29% the young key customer group 19% 17% 12% 359 148 1
Slide 6: European beauty is a large, structurally growing and resilient market
EUROPEAN BEAUTY IS A LARGE, STRUCTURALLY GROWING AND RESILIENT MARKET MARKET VOLUME1 (€BN) The European beauty market is worth €92bn, Online has been growing particularly fast and more than doubled in out of which Douglas’ key product categories market size within the premium segment between 2015 an
Slide 7: Unique market characteristics – need for a trusted premium curator
UNIQUE MARKET CHARACTERISTICS – NEED FOR A TRUSTED PREMIUM CURATOR IN A SHIELDED DISTRIBUTION SYSTEM Manufacturer Customer Hundreds of brands Millions of customers Trusted premium curator Selective distribution In order to ensure that their brand is presented in line with their premium positioning,
Slide 8: #FORWARDBEAUTY.DIGITALFIRST
#FORWARDBEAUTY.DIGITALFIRST STRATEGY EXECUTION UPDATE BEAUTY PLATFORM 1 Brand positioning E-COMMERCE ONLINE SHOP PARTNER PROGRAMME 8 3 ASSORTMENT 5 CURATION / CRM Choice & innovation Inspiration & personalisation 4 SUPPLY CHAIN 6 TECHNOLOGY Customer Operational excellence Data-driven culture Partner
Slide 9: We upgraded and rejuvenated the Douglas brand
WE UPGRADED AND REJUVENATED 1 THE DOUGLAS BRAND MORE MODERN AND NEW VISUAL NEW PREMIUM POSITIONING LANGUAGE LOGO 9 Brand Store Assortment Supply Chain CRM Technology
Slide 10: Our stores: from point of sale to point of experience
OUR STORES: FROM POINT OF SALE TO POINT OF 2 EXPERIENCE Flagship Luxury Prestige Premium AI-based ordering DOUGLAS Warehouse Network of 5 OWAC1 AI-based replenishment Major city, high Prime location Premium Mainstream DOUGLAS E-Com order Store traffic location, with luxury wealthy shopping E-Com ord
Slide 11: Assortment: clear differentiation with nearly 200,000 beauty products
ASSORTMENT: CLEAR DIFFERENTIATION WITH 3 NEARLY 200,000 (2) BEAUTY PRODUCTS BEAUTY HAIR DERMA BEAUTY ACCESORIES & JEWELLERY WITH NEARLY 200,000 SKUS DOUGLAS HAS THREE TIMES AS MANY SKUS AS ITS CLOSEST COMPETITOR 1 236 partners as of 31 Mar 2022 in Germany, Austria, France, Poland live, Italy go live
Slide 12: Douglas brands important pillar of the Douglas assortment
DOUGLAS BRANDS 3 IMPORTANT PILLAR OF THE DOUGLAS ASSORTMENT STRATEGIC RELEVANCE JARDIN BOHÈME › Superior profitability › Premium affordable fine fragrance offer › Strong NES growth (+56 %) vs. Q2 PY › Top rotations on industry level for bestsellers › TOP 6 “supplier” within Douglas DE in Q2* › TOP 1
Slide 13: Online pharmacy: integration of Disapo
ONLINE PHARMACY: INTEGRATION OF DISAPO 3 Closing of transaction in April ✓ • Start advertising of pharma assortment on DOUGLAS platform Integration of Disapo assortment well on track ✓ • European roll-out ready for H2 • Technical preparation for Partner Programme Germany: Launch of e-prescription ro
Slide 14: Our integrated physical and digital supply chain
OUR INTEGRATED PHYSICAL 4 AND DIGITAL SUPPLY CHAIN PHYSICAL SUPPLY CHAIN › New go-to-market supply chain strategy: One Warehouse, All Channels (OWAC) OWAC sites › 5 OWAC sites to be built to enable E-Com growth and marketplace partner fulfilment by Douglas with up to 150k SKUs per site in total, rep
Slide 15: Douglas DataHub is the key enabler for the holistic machine learning data strategy
DOUGLAS DATAHUB IS THE KEY ENABLER FOR THE 5 HOLISTIC MACHINE LEARNING DATA STRATEGY OFFLINE DATA RETAIL MEDIA DATA CRM DATA MARKETPLACE DATA DOUGLAS WEBSITE DATA PERFORMANCE MARKETING DATA ANALYTICS DATA BI-DIRECTIONAL DATA EXCHANGE UNIDIRECTIONAL DATA EXCHANGE DOUGLAS APP DATA 15 Brand Store Assor
Slide 16: CRM: 1:1 curated customer communication in all channels
CRM: 1:1 CURATED CUSTOMER COMMUNICATION 5 IN ALL CHANNELS › Personal beauty tips › Personalised start page › Personalised offers › Customer master data › Individualised product news › Beauty points, coupons & › Inspirational content › Personal salutation › Targeted product rewards › Push notificatio
Slide 17: Curation/CRM: Social commerce | Douglas LIVE
CURATION/CRM: SOCIAL COMMERCE | DOUGLAS L I V E 5 Q2 2021/22 LIVE SHOWS NEW L I V E Live in Annual spend DE, AT, CH, compared to average NL, IT, ES, PL and FR E-Commerce shopper Building up the creator RO is live from 31/03 economy – addressing micro and macro Influencers and DOUGLAS experts Custome
Slide 18: Successful partner program in countries
SUCCESSFUL PARTNER PROGRAM IN 5 COUNTRIES. 5 ITALY PLANNED GO LIVE IN JUNE NUMBER OF PARTNERS ALL NUMBER OF PARTNER COUNTRIES* SKUS ALL COUNTRIES* 236 155k 135k 146 Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 Partner Program live Partner Program upcoming FY 21/22 Q2 *Incl. Small brands via enablers;
Slide 19: Digital infrastructure in place
DIGITAL INFRASTRUCTURE IN PLACE 5 Omni- Channel BW Business Commerce Customer Intelligence Cloud Data Cloud store FICO Accounting COVID resulted in Online acceleration – Douglas’ established technological infrastructure copes with changing buyer behaviour ERP LES Marketing Cloud 19 Brand Store Assor
Slide 20: Launch of store optimization program
LAUNCH OF STORE OPTIMIZATION PROGRAM IN LINE WITH #FORWARDBEAUTY.DIGITALFIRST Sustainable shift from offline to online High number of stores Change of customer behavior in post-Covid within same catchment new normal with reduced store traffic areas drive potential to capture offline revenue Re-balan
Slide 21: Optimized store portfolio will increase EBITDA
OPTIMIZED STORE PORTFOLIO WILL INCREASE EBITDA STORE PORTFOLIO OPTIMIZATION ILLUSTRATIVE Current Store Revenue Revenue P&L After Store Portfolio Transfer Transfer Closures Closure of stores with negative or low profitability Online Channel Offline Channel Net Revenue transfer to nearby EBITDA effect
Slide 22: Store optimization program and #ForwardOrganization completion
STORE OPTIMIZATION PROGRAM AND #FORWARDORGANIZATION COMPLETION BY END OF FY21/22, SPANISH RESTRUCTURING FY 22/23 EBITDA potential One-offs cash Main lever Comments (€m) (€m) Optimisation of store portfolio based on analysis of catchment areas Selection of future store network based on performance, S
Slide 23: SOP implementation overview
SOP IMPLEMENTATION OVERVIEW FULLY ON TRACK, 97% OF SAVINGS ACHIEVED STATUS 31.03.2022 STORE CLOSURES / LEASE FTE REDUCTIONS1 RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES1 (# OF STORES) Contracts terminated Store 56% re-negotiation 56% Stores closed 91% in closure stores completed (
Slide 24: Summary
SUMMARY Transformation to an integrated, digital beauty platform reflects the changes in consumer behavior Store closures are a consequence of the digital transformation Remaining stores become part of the integrated, digital beauty platform Positive effects on EBITDA enable us to further pursue our
Slide 25: Closer look: Q2 2021/22 Financials
CLOSER LOOK Q2 2021/22 FINANCIALS
Slide 26: Net sales development by segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q2 2021/22 Total, in m€ DACHNL FRANCE 357 148 247 +44.3% 123 +20.2% GROUP 719 + 43.9 %LfL 551 +30.7% + 29.4% LfL Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 118 124 90 +5.6% 62 +44.3% + 39.0 % LfL + 32.3 % LfL Q2 2020/21 Q
Slide 27: Net sales development by segment: E-Commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q2 2021/22 E-Commerce, in m€ DACHNL FRANCE 219 177 -19.4% GROUP 29 31 +7.1% 291 250 -14.3% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 +100.7% SOUTHERN EUROPE CENTRAL EASTERN EUROPE vs. pre- COVID 24 22 18 20 -11.3% +9.3% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q
Slide 28: E-Com and Brick & Mortar complement each other
E-COM AND BRICK & MORTAR COMPLEMENT EACH OTHER IMPRESSIVE LONG-TERM E-COM GROWTH SALES SHARE E-COM AND BRICK & MORTAR NET SALES (in m€) 1,199 728 551 719 47.1% 817 Mar 2022 LTM vs. 65.3% CAGR FY 2020/21 B&M 82.9% 585 423 383 324 261 52.9% 180 34.7% 145 106 69 E-Com 17.1% Q2 2018/19 Q2 2020/21* Q2 20
Slide 29: E-Commerce maintains high level
E-COMMERCE MAINTAINS HIGH LEVEL PRIOR YEAR’S FIGURES STRONGLY IMPACTED BY LOCKDOWNS GROUP Q2 2021/22 (VS. PY) -14.3% 0.3%pts +2.5% E-Com net sales Conversion rate Average basket (incl. VAT) +2.9%pts +1.4%pts E-Com sales share Mobile sales share App sales share** New customers in E-Com* Number of vis
Slide 30: Net sales development by segment: Brick & Mortar
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR Q2 2021/22 Brick & Mortar, in m€ DACHNL FRANCE +545.5% 180 117 GROUP 94 +24.4% 471 28 +617.2% LfL + 37.6% LfL Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 +81.3% 260 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 100 105 +4.9% +82.0% + 117.3 % LfL 69 38 + 39.1%
Slide 31: Adjusted EBITDA development Q2 2021/22
ADJUSTED EBITDA DEVELOPMENT Q2 2021/22 In m€ GROUP TOTAL Higher sales combined with ongoing cost discipline in 30 personnel and operating expenses drives positive adjusted 25 25 EBITDA and margin 20 15 Store Optimization Program: fully on track and leading to 25 10 lower rental and personnel expense
Slide 32: Adjusted EBITDA development by segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q2 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 28 20 GROUP 13 25 14 5.6% 7.8% 10.9% 13.8% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 -0.3% 3.5% SOUTHERN EUROPE CENTRAL EASTERN EUROPE 9 Adjusted -1 5 EBITDA Margin -8.0% -1.0% 8.3% 9.7% -1 Q2 2020/21 Q2 2021/2
Slide 33: Adjusted EBITDA development by segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q2 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 28 20 GROUP 13 25 14 5.6% 7.8% 10.9% 13.8% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 -0.3% 3.5% SOUTHERN EUROPE CENTRAL EASTERN EUROPE 9 Adjusted -1 5 EBITDA Margin -8.0% -1.0% 8.3% 9.7% -1 Q2 2020/21 Q2 2021/2
Slide 34: P&L overview
P&L OVERVIEW Q2 2021/22 In m€ Q2 2020/21 Q2 2021/22 ∆% Reported EBITDA: Net sales 550.5 719.3 30.7% Improved substantially compared to prior year due to Gross profit 213.2 317.0 48.7% higher net sales, higher gross profit margin and general cost Gross profit margin 38.7% 44.1% 13.8% discipline Opera
Slide 35: Net working capital and capex
NET WORKING CAPITAL AND CAPEX ONGOING IMPROVEMENTS AND INVESTMENT DISCIPLINE In m€ NET WORKING CAPITAL CAPEX 282 21 221 21.6% 16 Mar 21 Mar 22 Q2 2020/21 Q2 2021/22 › Strong limit control and use of RELEX in DE, AT & CH, in IT & › Ongoing cautious spending policy against the background of PL for E-C
Slide 36: Free cash flow
FREE CASH FLOW IMPACTED BY WORKING CAPITAL AND OTHERS In m€ ADJUSTED FCF DEVELOPMENT FREE CASH FLOW BRIDGE Q2 2021/22 Q2 2019/20 Q2 2020/21 Q2 2021/22 -90 25 -22 -144 -175 -186 5 -50 -47 -186 0 -233 -233 1 2 3 4 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF POST M
Slide 37: Liquidity headroom and leverage
LIQUIDITY HEADROOM AND LEVERAGE ONGOING COST AND CASH DISCIPLINE CASH BALANCE TOTAL NET LEVERAGE1 Improved liquidity In m€ In m€ Prior year impacted by sales declines due to full or partial 452 10.3 lockdowns in all Core Countries 8.1 Funding of Disapo 6.6 6.5 acquisition: 160 Add-on to Term Loan B
Slide 38: Evolution of capital structure
EVOLUTION OF CAPITAL STRUCTURE CASH AND DEBT1 STRUCTURE AS OF 31 MARCH 2022 Senior PIK Notes: m€ x Adj. x Mgmt. Adj. Maturity Pricing In m€ EBITDA1 EBITDA² › Type of interest payments is generally at Cash and Equivalents 292 Douglas’ discretion › Douglas intends to RCF (€170m Volume) 0 Jan 26 E+4.75
Slide 39: Summary Q2
SUMMARY Q2 Net sales increase driven by strong growth in B&M business E-commerce slowed, but sales remain more than twice as high as in pre-Covid period Higher sales in conjunction with ongoing cost discipline in personnel and operating expenses drives positive adjusted EBITDA Robust liquidity situa
Slide 40: Appendix
Slide 41: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS In Q2 2021/22 primarily related to infrastructure optimization and the acquisition of Disapo (m€) Q2 2020/21 Q2 2021/22 H1 2020/21 H1 2021/22 PPA: Reported EBITDA -164.9 -21.6 -16.5 168.4 Former acquisitions Consulting fees 18.5 6.7 23.8 10.4
Slide 42: Selected segmental KPIs Q2 2021/22
SELECTED SEGMENTAL KPIS Q2 2021/22 In m€ REPORTED EBITDA CAPEX Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 DACHNL -58.3 20.8 DACHNL 2.2 2.7 France -9.1 20.3 France 2.1 3.1 Southern Europe -47.4 -32.7 Southern Europe 0.9 1.5 Central Eastern Europe 1.3 8.7 Central Eastern Europe 1.6 2.0 Consolidation
Slide 43: Deep dive into LfL net sales development
DEEP DIVE INTO LFL NET SALES DEVELOPMENT QUARTERLY OVERVIEW LIKE FOR LIKE NET SALES DEVELOPMENT Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 DACH - NL -22.1% -3.5% 2.6% 11.7% 43.9% France -7.6% 28.7% 10.6% 14.7% 29.4% Southern Europe -4.8% 35.4% 8.1% 24.7% 32.3% Central Eastern Europe -5.1
Slide 44: Net sales development by segment H1
NET SALES DEVELOPMENT BY SEGMENT GROUP H1 2021/22 Total, in m€ DACHNL FRANCE 960 820 +17.2% GROUP 410 473 2,015 +15.3% 1,723 +16.9% +20.4% LfL + 18.9%LfL H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 310 332 + 23.2% LfL +6.9% 250 183 +36.6% + 27.6% LfL H1 2020/21
Slide 45: Net sales development by segment: E-Commerce H1
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE H1 2021/22 E-Commerce, in m€ DACHNL FRANCE 504 459 -8.9% 117 107 -8.5% GROUP 724 676 -6.7% H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 49 52 53 57 +5.1% +7.7% H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 H1 2020/21 H1
Slide 46: Net sales development by segment: Brick & Mortar H1
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR H1 2021/22 Brick & Mortar, in m€ DACHNL FRANCE + 31.7% LfL 502 316 +58.8% 293 362 GROUP +23.2% 1,336 + 73.5% LfL 998 +33.9% H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 261 280 + 54.5% LfL +7.3% + 49.5% LfL 193 127
Slide 47: Adjusted EBITDA development by segment H1
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT H1 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 106 115 +9.0% 88 GROUP 70 +24.6% 216 12.9% 12.0% 18.5% 17.1% 170 H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 3.0% 8.0% 47 Adjusted 32 +46.7% EBITDA Margin 27 9.8% 10.7% 9 +1
Slide 48: Selected segmental KPIs H1 2021/22
SELECTED SEGMENTAL KPIS H1 2021/22 In m€ REPORTED EBITDA CAPEX H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 DACHNL 21.3 101.6 DACHNL 4.7 5.2 France 47.4 90.9 France 3.7 4.7 Southern Europe -30.7 0.5 Southern Europe 2.3 2.9 Central Eastern Europe 25.2 46.4 Central Eastern Europe 4.6 2.4 Consolidation
Slide 49: Overview segmental structure
OVERVIEW SEGMENTAL STRUCTURE BRICK & MORTAR, NEW STRUCTURE SINCE Q1 2021/22 DACHNL FRANCE Austria France Germany Monaco Switzerland The Netherlands CENTRAL EASTERN EUROPE Bulgaria SOUTHERN EUROPE Croatia Andorra Czech Republic Italy Estonia Portugal Hungary Spain Latvia Lithuania Poland Romania Slov
Slide 50: P&L overview H1 2021/22
P&L OVERVIEW H1 2021/22 H1 2020/21 H1 2021/22 ∆% Reported EBITDA: Increased significantly over prior year due to higher net Net sales 1,723.4 2,015.2 16.9% sales, higher gross profit margin and general cost Gross profit 726.2 877.4 20.8% discipline esp. in personnel costs Gross profit margin 42.1% 4
Slide 51: Free cash flow H1 2021/22
FREE CASH FLOW H1 2021/22 In m€ ADJUSTED FCF DEVELOPMENT 183 FREE CASH FLOW BRIDGE H1 2021/22 154 111 216 -36 H1 2019/20 H1 2020/21 H1 2021/22 -31 -24 -14 111 -48 64 0 64 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF POST M&A Adjustments (pre M&A) (Cash effect) 17
Slide 52: Cash flow statement
CASH FLOW STATEMENT H1 2021/22 Cash flow from CASH FLOW STATEMENT operating activities Increased due to EBITDA increase and higher sales in brick & mortar (m€) H1 2020/21 H1 2021/22 Cash flow from investing activities Net cash flow from operating activities 45.3 94.3 Reduced due to responsible spend
Slide 53: Net working capital
NET WORKING CAPITAL NET WORKING CAPITAL Net Working Capital Continues to be a key focus; In m€ 282 efficient management 248 supported by AI-based 2.3% 221 184 software RELEX NWC as % of LTM net sales 9.4% 8.0% 5.9% 6.5% Inventory 76 Lower inventory due tighter inventory management, 31.03.2021 30.06.
Slide 54: Premium store network footprint across Europe
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings* Decrease in number of stores driven by SOP Portfolio realignment across Europe will result in further reduction in number of stores 2,322 1,957 31 Mar 2021 140 -15.7% (m€) – 133 31 Mar 2022 Store openings 12 2,182
Slide 55: Notice to recipients
NOTICE TO RECIPIENTS This presentation and any materials distributed in connection herewith (together, The information in this Presentation does not constitute investment, legal, expressly disclaims any such obligation, to update, revise or amend any forward- the “Presentation”) have been prepared b
Slide 56: Contact
Contact: Douglas Investor Relations Tel.: +49 211 16847 8594 E-Mail: ir@douglas.de