Naked Wines Plc · LSE:WINE
Naked Wines — Investor Day (March 2025)
52 slides from Naked Wines's investor day presentation, Mar 27, 2025
Slide 1: Strategy Event Management Presentation
Strategy Event Management Presentation March 2025
Slide 2: Agenda
1. Naked Overview 2. Market Context Agenda 3. Financial Plan PRESENTING 4. Return to Growth Rodrigo Maza Lisa McDowell CEO CGO 5. Concluding Remarks Dominic Neary Paul Calandrella CFO CCO 6. Wine with Ruth Simpson
Slide 3: My commitment to you
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core My commitment to you Transparent & Focused & Responsible & Scientific Disciplined Pragmatic Impactful testing, focus on Guardrails on SG&A, MKT Performance review to maximise clear and consisten
Slide 4: Naked has made real progress
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Naked has made real progress FY22-24 FY25 FY26+ Where we were… Where we are… Where we’re going… Headline Volatility Stability Opportunity “Is Naked going bust?” “Naked is safe.” “Naked has huge
Slide 5: Our plan delivers >£75m cash from FY25 balance sheet and up to £30m
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Our plan delivers >£75m cash from our FY25 balance sheet and up to £30m from medium term trading with further upside available Value Creation Priority Key Drivers (Medium Term) Release cash tie
Slide 6: Our plan assures significant value creation
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Our plan assures significant value creation Returning to historic retention levels supercharges this FY19 level Retention Business & operational excellence Market Capitalisation FY25 level up to
Slide 7: Naked Overview
01 Naked Overview
Slide 8: By cutting out the middleman, Naked Wines enables better wine for less
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core By cutting out the middleman, Naked Wines enables consumers to enjoy better wine for less NAKED WINES PLC STRATEGY PRESENTATION 8
Slide 9: Naked sells better wine at a lower price
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Wine drinkers say Price per bottle Naked sells better wine at a lower price Rating / 5 NAKED WINES PLC STRATEGY PRESENTATION Source: Vivino USA data scrape and analysis - 2025 Method: 200 Naked
Slide 10: Naked Wines at a glance
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Naked Wines at a glance AUS 13% US 592,000 80 82% 45% Members NPS1 Retention2 Revenue UK 42% 91% >300 90% “Like It” Rating 3 Winemakers US Population Coverage NAKED WINES PLC STRATEGY PRESENTAT
Slide 11: Market Context
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Slide 12: Wine is a fragmented, growing market driven by structural factors
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Wine is a fragmented, growing market driven by multiple structural factors An attractive market Trends impacting Naked 4% DTC online forecast to grow to Target market is increasingly motivated
Slide 13: Total addressable market of 27m adults and highest potential customers
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core With a total addressable market of 27m adults, Naked is now clear on its highest potential customers & how to attract them There are 27m Premium Wine Drinkers (PWD)* We know who they are, how t
Slide 14: Customer value proposition aligns to key drivers of buying wine online
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Naked’s customer value proposition aligns to the key drivers for buying wine online: convenience, quality & value and selection Drivers of buying wine online Customer value proposition % premiu
Slide 15: Unique market positioning enabled us to win, but experience quality has slipped
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Unique market positioning enabled us to win - but experience quality has slipped - we became a retailer (& lost our cause) Product market fit DTC / Ecommerce Supermarkets Vineyards Today Tomorro
Slide 16: Naked Flywheel
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Clarity and delivery of our Customer Value Proposition makes the Naked Flywheel spin START HERE! Team Angels Rewarding them generously and By better engaging with our investing in the company’s
Slide 17: We now have the right team in place
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core We now have the right team in place to deliver on our plans Rodrigo Maza Alice Hoult Lisa McDowell Paul Calandrella Paul Connell Dominic Neary Chief Executive Chief Digital Chief Growth Chief C
Slide 18: Financial Plan
03 Financial Plan
Slide 19: CFO commitment to you
Recalibrate around CFO Overview Release cash tied up on the BS Return to sustainable growth profitable core My commitment to you Disciplined management Value based Profit focus of strong cash flow capital allocation In year investments are Secured by strengthened Generating intrinsic value unlocked as
Slide 20: Our plan delivers >£75m cash from FY25 balance sheet and up to £30m
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Our plan delivers >£75m cash from our FY25 balance sheet and up to £30m from medium term trading with further upside available Value Creation Priority Key Drivers (Medium Term) Release cash tie
Slide 21: Achieve £75m cash from the FY25 balance sheet
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Achieve £75m cash from the FY25 balance sheet £33m cash on the £40m net cash in Maximising value in balance sheet excess inventory all areas ⬛ The company has £33m of Net ⬛ Inventory has fallen
Slide 22: We will release £40m net cash from excess inventory
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core We will release £40m net cash from excess inventory (net of inventory liquidation costs) We have made real progress in the last 2 years: £40m net cash from excess inventory ● In August 24 we di
Slide 23: Recalibrate around a profitable core: up to £30m cash over 5 years
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Recalibrate around a profitable core: up to £30m cash over 5 years from, the momentum in core members, and £23m annual cost savings Profitable £7m annual savings5 £16m annual cost core members fr
Slide 24: The underlying business is stable: initiatives drive future growth
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core The underlying business is stable: initiatives drive future growth Closing number of members c. 85% of the membership decline in FY25 was driven by the exceptional size of the cohort acquisitio
Slide 25: Angel funds have been broadly stable
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Angel funds have been broadly stable Angel funds are stable: weighted to core member base which is broadly stable Cancellation rates have fallen from 44% to 14% over 5 years. 44% Consumer funds
Slide 26: Revised marketing plan will deliver at least £7m savings in FY26
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Revised marketing plan will deliver at least £7m savings in FY26 Modelling and testing suggests £16m investment = payback of 2 ● Econometric modelling: Identified significant areas of ineffective
Slide 27: £16m of savings will be delivered in COGS and G&A
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core £16m of savings will be delivered in COGS and G&A Conservative 25% of Top 3 drivers potential opportunities identified in COGS £5m £3m savings £4m £4m warehouse as we better Specific & logistics
Slide 28: Medium Term exit financials: EBITDA > £10m in all realistic scenarios
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Medium Term exit financials: EBITDA > £10m and growing in all realistic scenarios Lower Our Plan Higher scenario scenario scenario Revenue £200m £225m £250m+ EBITDA £10m £15m £20m Yr 5 Cash £70m
Slide 29: EBITDA progressively grows to £10m-£15m
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core In our plan, EBITDA progressively grows to £10m-£15m with 200bps margin investment delivering sustainable growth FY25 Revenue £240m-£270m Medium Term: Commentary ● Revenue stabilising at £200-£
Slide 30: How we'll track success: revised KPIs
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core How we’ll track success: revised KPIs Release cash tied up on the balance FCF ROIC2 sheet Recalibrate around Gross Trading Payback1 a profitable core Margin % EBITDA Return to Customer Revenue R
Slide 31: Capital allocation priorities to maximise intrinsic value
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Capital allocation priorities with the aim of maximising intrinsic value New limited regular Significant M.T. IRR Potential distribution policy one-off distributions focus M&A Prioritising finali
Slide 32: Return to Sustainable Growth
04 Return to Sustainable Growth
Slide 33: FY25 customer insight and testing has informed FY26 strategy
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core FY25 - Customer insight and testing has informed FY26 strategy Naked Truth framework: A problem-solving framework for impactful & disciplined testing to inform strategy Test areas Any occasion
Slide 34: Case Study: right customer membership model for growth
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Case Study: Do we have the right customer membership model for Growth? Answer after much testing - yes we do! ‘We choose’ (Wine Genie) Ecommerce (no sign up) Angel membership ��🇺 �� …
Slide 35: Hear from Crystal
Hear from Crystal naked:
Slide 36: Case Study: Australia returns to growth in FY25
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Case Study: Australia returns to growth in FY25 after 2 prior years of double digit declines Brand Led Disciplined Discovery & Supply Chain Growth Acquisition Community Optimisation Removing <3
Slide 37: Two core pillars of marketing strategy: retention and acquisition
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core There are two core pillars of our marketing strategy - retention & acquisition - enabled by selective tech modernisation Learn our way back to historic retention levels via customer value propo
Slide 38: Re-establish a global range strategy
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Re-establish a global range strategy which balances commerciality with local tastes & connection to winemakers Drive range love with emerging talent, Innovators, locally-relevant stories and wi
Slide 39: Learn our way back to pre-Covid retention levels
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core We will learn our way back to pre-Covid retention levels by investing margin to rebuild customer loyalty Data points used for Initiatives to test Estimated impact impact estimates • Realign pri
Slide 40: Two core pillars of marketing strategy: retention and acquisition
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core There are two core pillars of our marketing strategy - retention & acquisition - enabled by selective tech modernisation Learn our way back to historic retention levels via customer value propo
Slide 41: It's time to fulfil the potential of the Naked Wines brand
It’s time to fulfill the potential of the Naked Wines brand
Slide 42: A two year journey to restore the potential of the Naked brand
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core A two year journey to restore the potential of the Naked brand fuelling profitable growth We have the right to join best in class subscription businesses and that’s where we are going. FY 2027 B
Slide 43: Convert long term customers through value proposition and iterative testing
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Convert long term customers based on enhanced articulation of our value proposition and rapid iterative testing Awareness Conversion Referral Retention Reactivation FY25 20+ tests 10+ tests 100
Slide 44: Revised marketing plan will deliver at least £7m savings in FY26
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Revised marketing plan will deliver at least £7m savings in FY26 Modelling and testing suggests £16m investment = payback of 2 ● Econometric modelling: Identified significant areas of ineffective
Slide 45: Marketing payback is the highest it's been in 2 years
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Marketing payback is the highest it’s been in 2 years via disciplined testing and new measurement approach ● Payback on a declining trajectory in the recent past ● Five year measure therefore 2
Slide 46: Pathway to exploit the power of our community
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Pathway to exploit the unique power of our community - increasingly fueling sustainable growth via member advocacy Talkable moments Creators Deliver brand ‘aha’ Great authentic content, moments
Slide 47: A two year journey to restore the potential of the Naked brand
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core A two year journey to restore the potential of the Naked brand fuelling profitable growth We have the right to join best in class subscription businesses and that’s where we are going. FY 2027 B
Slide 48: Hear from our winemakers
Hear from our winemakers naked: Without Naked | x ae Wines —
Slide 49: Concluding Remarks
Concluding Remarks naked:
Slide 50: Our plan delivers >£75m cash from FY25 balance sheet and up to £30m
Recalibrate around CEO overview Release cash tied up on the BS Return to sustainable growth profitable core Our plan delivers >£75m cash from our FY25 balance sheet and up to £30m from medium term trading with further upside available Value Creation Priority Key Drivers (Medium Term) Release cash tie
Slide 51: Concluding remarks
1 £70-100m in trading cash and inventory reduction 2 Highly engaged, profitable core member base 3 EBITDA progressively growing to £10-£15m 4 Focus on value and distributions Concluding 5 Clarity around levers to pull to boost retention remarks 6 Disciplined acquisition now evidence based 7 The right
Slide 52: Wine tastes better Naked
naked: Wine tastes better Naked