Srp Groupe Sa · EURONEXT:SRP
Srp Groupe Sa — Showroomprivé — FY2017 Earnings Presentation
36 slides from Srp Groupe Sa's earnings presentation, Mar 8, 2018
Slide 1: FY2017 Results
FY2017 RESULTS - March 8th, 2018 -
Slide 2: 2017 key business highlights
I 2017 key business highlights
Slide 3: 2017 Key Business Highlights
2017 KEY BUSINESS HIGHLIGHTS strategic projects transforming the group for the long term Implementation of our omni-channel vision with our partnerships with Carrefour and Conforama Acquisition of Beauteprivee Finalization of Saldi Privati integration Strong international momentum Strengthening of t
Slide 4: Implemented our omnichannel vision and enlarged our offering
IMPLEMENTED OUR OMNICHANNEL VISION AND ENLARGED OUR OFFERING H1 2017 March 2017 May 2017 January 2018 Integration OF ACQUISITION OF STRATEGIC PARTNERSHIP STRATEGIC PARTNERSHIP Our 1st international Our 3rd largest Our 2nd largest Presence across the geography category category entire value chain ACC
Slide 5: Confirmed strong international momentum
CONFIRMED STRONG INTERNATIONAL MOMENTUM International internet revenues & growth vs same period the year before € million +87% +35% +28% excl. Saldi privati +33% +3% -8% +9% excl. Saldi privati 54.1 57.1 42.8 31.7 28.9 H2-15 H1-16 H2-16 H1-17 H2-17 14% of Group Internet revenues 18% of Group Interne
Slide 6: Enhanced UX and pushed boundaries
ENHANCED UX AND PUSHED BOUNDARIES UX DELIVERY GROWTH CSR Launch of 2nd fashiontech Dropshipment festival Launch of Relift of all our & Conforama Launch of 1st media & Personalization platforms Click-&-Collect morocco campaign New warehouse Launch of dedicated to our our e-commerce shoes offering sch
Slide 7: More engaged and mobile addict customers
MORE ENGAGED AND MOBILE ADDICT CUSTOMERS A growing Loyal and community +1.2 M 78 % engaged Revenue New Buyers1 from repeat buyers2 +6 % +10 % Average revenue per Buyers1 buyer1 82 % +4 Pts NPS Traffic 62 % 90 % More & Repeat Increasingly Gross sales purchase more mobile intention statisfied Notes: D
Slide 8: Mixed performance of our product categories
MIXED PERFORMANCE OF OUR PRODUCT CATEGORIES Growth by product categories1 A large and fashion oriented offering Shoes Ready-to-wear Fashion accessories Beauty 53% sales1 21% 23% From fashion Underwear 18% Travel Dematerialized Children products Home & Sport decoration FY17 Fashion Non-Fashion • Soli
Slide 9: What weighted on our 2017 performance?
WHAT WEIGHTED ON OUR 2017 PERFORMANCE? Commercial issues • Some missed opportunities in certain product categories in Q4 • Lack of focus and KPIs monitoring Less Difficult trading conditions revenues • Q2 weaker than anticipated • Christmas shopping period delayed due to Black Friday 2017 was also a
Slide 10: H2 2017 & FY2017 results
II H2 2017 & FY2017 results
Slide 11: Overview of 2017 revenues growth
OVERVIEW OF 2017 REVENUES GROWTH Revenues breakdown € million FY 2017 H2 2017 +21% +17% +13% ORGANIC GROWTH +9% ORGANIC GROWTH 655.0 348.8 539.7 299.4 111.2 57.1 +55% +33% 71.7 42.8 +14% 518.7 +11% 275.2 453.7 248.2 FY16 FY17 H2-16 H2-17 France International Non-Internet Net Internet revenues +21% r
Slide 12: Q4 weighted on 2017 revenues growth
Q4 WEIGHTED ON 2017 REVENUES GROWTH Net revenues & net revenues growth by quarter € million Q4 performance has been impacted by: • Missed opportunities on categories traditionally strong at year-end… • … and launch of Christmas shopping * period delayed due to Black Friday Quarter growth vs. +31% la
Slide 13: Sustained customer engagement
SUSTAINED CUSTOMER ENGAGEMENT Strong customer KPIs million FY 2017 Average internet Average orders Buyers revenues per buyer Per buyers Basket size (€) +10% + +6% +5% + +1% New 1.2 buyers 1.2 159.9 169.3 Retained 2.4 38.4 2.0 4.4 buyers 4.2 38.0 FY2016 FY2017 FY2016 FY2017 FY2016 FY2017 FY2016 FY201
Slide 14: Gross margin evolution
GROSS MARGIN EVOLUTION Gross margin evolution € million 239.0 +15% 207.7 Close to 160,000 Infinity Members as of Dec.31st, 2017 (0.8)pt 38.5% (0.4)pt (0.8)pt 36.5% FY2016 1 2 3 FY2017 Conversion Investments (Reduced shipping Impact of Saldi Privati * Main impacts coming from (i) Slight increase of *
Slide 15: Focus on 2017 Opex
FOCUS ON 2017 OPEX Opex evolution Costs In € million and as % of net revenues (as % of net revenues) Marketing Stable investments at constant perimeter +1.6%PT +0.3%PT +0.2%PT 4.8% 5.0% 5.8% 5.9% FY16 FY17 H2-16 H2-17 35.8% +2.0%PT Logistics & Fulfilment Higher storage and handling costs in relation
Slide 16: EBITDA evolution
EBITDA EVOLUTION EBITDA Bridge by geographies FY17 EBITDA FY17 (excl. Saldi Privati) € million € million 5.4% 4.8% (9.5) 25.7 16.2 France International FY17 excl. 2.6% Saldi Privati 2.0% EBITDA Bridge by semester FY17 28.8 (excl. Saldi Privati) € million 16.2 13.1 3.3 13.0 16.2 FY16 excl. FY17 excl.
Slide 17: Cash flow evolution
CASH FLOW EVOLUTION Net change in cash by semester FY17 Progressive normalisation of inventories € million € million 31/12/2016 82.6 (46.1) (56.2) 10.1 30/06/2017 114.6 31/12/2017 92.9 H1-17 H2-17 FY17 79% of inventories are less than 12 months €12m Free Cash Flow (1) in H2 (vs. 71% as of Dec.31st,
Slide 18: Strategy & outlook
III Strategy & outlook
Slide 19: Performance 2018-2020 plan
« PERFORMANCE 2018-2020 » PLAN SHORT TERM performance MEDIUM TERM 2018-2020 3 short term objectives 3 Strategic priorities 1. Refocus on fundamentals : 1. Deliver better, faster & Members & Brands at a lower cost 2. Improve operational efficiency 2. Develop new sources of revenues & margins (data) 3
Slide 20: Short term: focus on execution and bring back SRP to full potential
FOCUS ON EXECUTION & BRING BACK SRP SHORT TERM TO ITS FULL POTENTIAL Priorities Key actions Timing • Refocus of SRP founders on the Group two pillars: REFOCUS ON FUNDAMENTALS Members & Brand Partners EFFECTIVE • Reorganization of the sourcing team and more IMPROVE OPERATIONAL EFFICIENCY structured a
Slide 21: Zoom on selected short term actions (1/2)
ZOOM ON SELECTED SHORT TERM ACTIONS (1/2) SHORT TERM 2018 Reinforce commercial approach More detailed business monitoring • Reorganization of the team around • New commercial tool: “100% Salesforce” 6 areas of expertise implementation to boost commercial • Recruitments in non-fashion categories of e
Slide 22: Zoom on selected short term actions (2/2)
ZOOM ON SELECTED SHORT TERM ACTIONS (2/2) SHORT TERM 2018 Re-think our marketing approach • Merger of Brand Agency (brand image) with Marketing departments (CRM, digital acquisition, B2B) • Shift from a marketing approach focused on acquisition to a new strategy adding also traffic, loyalty and bran
Slide 23: Deliver better, faster and at a lower cost
DELIVER BETTER, FASTER AND AT A LOWER COST medium TERM BY INSOURCING A PART OF OUR LOGISTIC SERVICES Opening by the end Full logistic services of 2019 product sorting, of a new warehouse order preparation, for consignment flows with management of returns high product specialization and automation Pr
Slide 24: Monetize our data and launch media offerings
MONETIZE OUR DATA AND LAUNCH MEDIA OFFERINGS medium TERM We have valuable assets… …potential demand is high… …And we stand ready to address it • Traffic • Strong appetite from our • Team in place • proprietary data brand partners • DMP already implemented • access to advertisers • The Digital Woman
Slide 25: Leverage our transforming partnership with Carrefour
LEVERAGE OUR TRANSFORMING PARTNERSHIP medium TERM WITH CARREFOUR WHICH OPENS NEW HORIZON Transaction closed in February immediately followed by launch of synergy workstreams Common strategy to develop a leading omni-channel offering with a complementary commercial target offering significant value c
Slide 26: Our opportunities for growth
OUR OPPORTUNITIES FOR GROWTH • We have a lot of new brands to recruit • Many of our categories are still to be developed (Home & Decoration, High Tech, Kids, Beauty, Travel…) • We have numerous new businesses to address (e.g. data) • We have a huge potential in our international markets • We have a
Slide 27: Appendices
IV appendices
Slide 28: We convert members into buyers and drive repeat purchases
WE CONVERT MEMBERS INTO BUYERS AND DRIVE REPEAT PURCHASES INCREASINGLY QUICKLY Our members convert to buyers increasingly A significant share of first-time buyers become rapidly and in greater proportion repeat buyers…increasingly quickly Member to buyer conversion (France) First-time buyer to repea
Slide 29: Selected key performance metrics
SELECTED KEY PERFORMANCE METRICS 2016 2017 % Growth H2-16 H2-17 % Growth CUSTOMERS METRICS Cumulative Buyers (in thousands) 6,757 7,983 18.1% France 5,562 6,442 15.8% International 1,195 1,541 28.9% Buyers (in thousands) 3,234 3,567 10.3% 2,369 2,539 7.2% France 2,767 2,817 1.8% 2,050 2,061 0.6% Int
Slide 30: Profit & loss statement
PROFIT & LOSS STATEMENT (€ thousands) 2016 2017 % Growth H2-16 H2-17 % Growth Net revenues 539,704 654,971 21.4% 299,373 348,798 16.5% Cost of goods sold -332,027 -416,003 25.3% -187,202 -224,238 19.8% Gross margin 207,676 238,967 15.1% 112,171 124,559 11.0% Gross margin as % of revenues 38.5% 36.5%
Slide 31: Segmental information
SEGMENTAL INFORMATION Revenues (€ thousands) 2016 2017 % Growth H2-16 H2-17 % Growth INTERNET REVENUES France 453,729 518,712 14.3% 248,230 275,236 10.9% International 71,709 111,169 55.0% 42,801 57,094 33.4% Total Internet revenues 525,438 629,882 19.9% 291,031 332,331 14.2% Other revenues 14,266 2
Slide 32: Cash flow statement
CASH FLOW STATEMENT (€ thousands) 2016 2017 H2-16 H2-17 Net income for the period -250 -5,234 -955 -5,024 Adjustments for non-cash items 18,228 11,946 7,017 4,789 Cash flow from operations before finance costs and income tax 17,978 6,712 6,062 -235 Elim of accrued income tax expense 2,741 -2,689 467
Slide 33: Balance sheet
BALANCE SHEET (€ thousands) 2016 2017 NON-CURRENT ASSETS Goodwill 102,782 123,685 Other intangible assets 39,289 49,789 Tangible assets 15,626 16,606 Other non-current assets 6,902 9,836 Total non-current assets 164,599 199,921 Current assets Inventory 82,638 92,945 Accounts receivable 36,612 53,001
Slide 34: Bridge of gross to net sales
BRIDGE OF GROSS TO NET SALES (€ thousands) 2016 2017 H2-16 H2-17 Total gross Internet sales1 721,606 873,600 405,136 476,064 VAT2 -113,472 -143,522 -64,374 -81,235 Revenue recognition impacts3 -87,497 -105,743 -52,128 -63,704 Non-interest revenue and other4 19,067 30,635 10,740 17,672 Net revenues (
Slide 35: Disclaimer
DISCLAIMER This presentation contains only summary information and does not purport to be comprehensive. This document may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assump
Slide 36: Thank you
THANK YOU Investor.relations@showroomprive.com