Global Fashion Group S.a. · XETR:GFG
Global Fashion — Q1 2023 Earnings Presentation
19 slides from Global Fashion's earnings presentation, Apr 27, 2023
Slide 1: #1 Fashion & Lifestyle Destination in LATAM, SEA & ANZ
#1 FASHION & LIFESTYLE DESTINATION IN LATAM, SEA & ANZ Q1 2023 RESULTS PRESENTATION 27 April 2023
Slide 2: 2023 Focus on Cost Actions Whilst Markets Are Uncertain
2023 FOCUS ON COST ACTIONS WHILST MARKETS ARE UNCERTAIN MARKETS ENTERING 2023 GFG INITIATIVES IN PLACE UNCERTAIN MACRO CAREFUL MANAGEMENT OF INVENTORY LEVELS INFLATION DRIVE MARKETPLACE & PLATFORM SERVICES CONSUMER SENTIMENT RESTRICT CAPITAL INVESTMENT AND OVERHEADS DISCIPLINED CUSTOMER ACQUISTION O
Slide 3: Continuation of Q4 2022 Trends with Some Gross Margin Investment
CONTINUATION OF Q4 2022 TRENDS WITH SOME GROSS MARGIN INVESTMENT €303m 41.1% (12.1)% NMV GROSS PROFIT MARGIN ADJ. EBITDA MARGIN (6.7)% yoy1 (1.7)ppt yoy (4.7)ppt yoy 10.7m 5.1m 2.5 ACTIVE CUSTOMERS ORDERS ORDER FREQUENCY (17.7)% yoy (19.1)% yoy 0.7% yoy Note: KPI definitions are included in the Appe
Slide 4: Key Metrics
KEY METRICS 4 Q1 2023 RESULTS PRESENTATION
Slide 5: Customer Numbers Reflect Reduced Marketing Investment and Covid Cohort Run-Through
CUSTOMER NUMBERS REFLECT REDUCED MARKETING INVESTMENT AND THE RUN-THROUGH OF A LARGE COVID COHORT ACTIVE CUSTOMERS ORDER FREQUENCY (M) (X) (17.7)% 0.7% 13.1 2.5 2.5 10.7 Q1/22 Q1/23 Q1/22 Q1/23 Note: KPI definitions are included in the Appendix. 5 Q1 2023 RESULTS PRESENTATION
Slide 6: Lower Volumes Offset by Stronger Order Value
LOWER VOLUMES OFFSET BY STRONGER ORDER VALUE INFLATION NMV ORDERS AVERAGE ORDER VALUE COUNTRY & Retail Marketplace CATEGORY (€M) (M) (€) MIX (6.7)%1 (19.1)% +15.4%1 59.4 326.8 303.3 51.7 6.3 34% 38% 5.1 Q1/22 Q1/23 Q1/22 Q1/23 Q1/22 Q1/23 Note: KPI definitions are included in the Appendix. (1) Const
Slide 7: Gross Margin Impacted by Consumer Sentiment; Fixed Cost De-Leverage
GROSS MARGIN IMPACTED BY CONSUMER SENTIMENT; LOWER ORDER VOLUMES CREATE FIXED COST DE-LEVERAGE REVENUE GROSS PROFIT / MARGIN ADJUSTED EBITDA / MARGIN (€M) (€M) (€M) Q1/22 Q1/23 (10.1)%1 (1.7)ppt 222.0 95.0 198.5 (7.4)% 81.5 (12.1)% 42.8% 41.1% (16.4) (24.0) (4.7)ppt Q1/22 Q1/23 Q1/22 Q1/23 (1) Const
Slide 8: Subdued Demand Across Our Markets and Higher Gross Margin Investment in ANZ
SUBDUED DEMAND ACROSS OUR MARKETS AND HIGHER GROSS MARGIN INVESTMENT IN ANZ Change on Q1/22 1 Q1/23 NMV (€M) Q1/23 ACTIVE CUSTOMERS2 (M) 121.3 5.8 94.3 87.8 2.8 2.1 (13.7)% (6.9)% (0.2)% (22.4)% (21.1)% 5.3% LATAM SEA ANZ LATAM SEA ANZ Q1/23 REVENUE (€M) Q1/23 GROSS MARGIN (%) 85.9 41.1% 39.6% 42.4%
Slide 9: Strong Quarter-End Cash Reflecting Q1 Seasonality
STRONG QUARTER-END CASH REFLECTING Q1 SEASONALITY (€M) Q1/22 Q1/23 PRO-FORMA CASH BALANCE Adj. EBITDA (16) (24) (€M) FUNDING OPERATIONS Cash Lease Costs (5) (5) with Retail inventory to scale Working Capital (42) (25) 562 (65) 489 TOTAL (63) (54) (8) Tech Capex (8) (6) CAPEX to invest our tech and P
Slide 10: Outlook
OUTLOOK 10 Q1 2023 RESULTS PRESENTATION
Slide 11: FY2023 Guidance Reconfirmed
FY2023 GUIDANCE RECONFIRMED NMV REVENUE ADJ. EBITDA CAPEX (5)-0% c.€1.0bn (3)-(1)% c.€35m c.€1.5-1.6bn LONGER TERM ADJ. EBITDA BREAKEVEN 2024 AMBITIONS: NORMALISED FREE CASH FLOW POSITIVE AT NMV OF €2.2 to 2.5bn Note: At 31 December 2022 closing exchange rates. 11 Q1 2023 RESULTS PRESENTATION
Slide 12: Q&A
Q&A 12 Q1 2023 RESULTS PRESENTATION
Slide 13: Appendix
APPENDIX 13 Q1 2023 RESULTS PRESENTATION
Slide 14: FX Sensitivity
FX SENSITIVITY €M IMPACT ON: CURRENCY ∆ Q1/23 vs. Q1/22 NMV REVENUE ADJ. EBITDA ARGENTINA (ARS) (45.8)% (3.1) (1.2) 0.6 AUSTRALIA (AUD) (1.4)% (1.7) (1.3) (0.0) BRAZIL (BRL) 4.9% 2.9 1.8 (0.4) OTHER (0.3)% (1.1) (0.7) 0.3 IMPACT ON Q1/23 AT Q1/22 FX RATES (1.4)% (3.0) (1.3) 0.5 14 Q1 2023 RESULTS PR
Slide 15: Issued Share Capital
ISSUED SHARE CAPITAL SHARE INFORMATION EMPLOYEE SHARE OPTION PROGRAMME WEIGHTED AVERAGE EXERCISE PRICE OUTSTANDING CALL OPTIONS2 Common shares in dematerialised Type of Share form with a nominal value of €0.01 €0.01 170,901 €5.99 2,602,376 Stock Exchange Frankfurt Stock Exchange €10.27 3,236,776 €30
Slide 16: Convertible Bond 2021
CONVERTIBLE BOND 2021 PRICING TERMS Outstanding Issue Size in the Public Market €279.9 million CONVERTIBLE BOND REPURCHASE 2022 Status Senior Unsecured Maturity 7 Years • On 27 April 2022, the Group repurchased Bondholder Put 15 March 2026 outstanding Convertible Bonds due 2028 via a modified Dutch
Slide 17: KPI Definitions
KPI DEFINITIONS Active Customers is defined as the number of customers who have purchased at least one item after ACTIVE CUSTOMERS cancellations, rejections and returns in the last twelve months Adjusted EBITDA is EBITDA adjusted for share-based payment (income) / expenses, Group recharges, IAS 29 H
Slide 18: Financial Calendar – Upcoming Events
FINANCIAL CALENDAR – UPCOMING EVENTS DATE EVENT LOCATION 25 May 2023 BofA Ecommerce Consumer Virtual Fieldtrip Virtual 13 June 2023 Barclays European Internet & Emerging Tech Conference London 10 August 2023 Q2 2023 Results Virtual 19 September 2023 Berenberg & Goldman Sachs 12th German Corporate Co
Slide 19: Disclaimer
DISCLAIMER Certain statements included in this document are forward-looking statements. Forward-looking statements can typically be identified by the use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” or other words of simil