Srp Groupe Sa · EURONEXT:SRP
Srp Groupe Sa — Showroomprivé — H1 2017 Earnings Presentation
31 slides from Srp Groupe Sa's earnings presentation, Jul 25, 2017
Slide 1: FY2016 Results
FY2016 RESULTS February, 27th 2017
Slide 2: A transforming year opening new horizons for the Group
A TRANSFORMING YEAR OPENING NEW HORIZONS FOR THE GROUP BECOMING MULTICHANNEL THANKS to CONFORAMA/STEinhoff partnership in France & ABROAD Strengthening of TWO STRATEGIC VERTICALs Home & Decoration with Conforama/Steinhoff partnership Beauty with Beauteprivee acquisition Acceleration of our INTERNATI
Slide 3: I. Business Update
I BUSINESS UPDATE
Slide 4: Our recent strategic initiatives
OUR RECENT STRATEGIC INITIATIVES May 2017 I. BUSINESS UPDATE October 2016 March 2017 STRATEGIC PARTNERSHIP WITH ACQUISITION OF ACQUISITION OF Our 2nd largest Our 1st international Our 3rd largest category geography category EXPAND OUR HOME & ACCELERATE IN ITALY EXPAND OUR BEAUTY DECORATION OFFERING
Slide 5: Partnership with Conforama/Steinhoff, a strong potential already on its way
PARTNERSHIP WITH CONFORAMA/STEINHOFF, A STRONG POTENTIAL ALREADY ON ITS WAY I. BUSINESS UPDATE From signing to 1st synergies in Q3-17 05/17 07/17 Q3/17 Q4/17 2018 Signing Closing launch of 1st 1st synergies Rollout of all workshops to materialise initiatives Priority areas of synergies Strong potent
Slide 6: Saldi Privati: integration ahead of plan
SALDI PRIVATI: INTEGRATION AHEAD OF PLAN November 16 – May 17 June 1st 2017 From July 2017 I. BUSINESS UPDATE On the way Integration Synergies to the single COMPLETED implementations platform Co-existence Merger of Saldi Privati and Revenue and cost synergies of the 2 websites SRP’s Italian platform
Slide 7: Keep improving user experience and quality of services
KEEP IMPROVING USER EXPERIENCE AND QUALITY OF SERVICES I. BUSINESS UPDATE QUALITY Keep scaling User Boost OF our business and Improve Payment convenience experience engagement enhance our SERVICES logistic firepower Navigation Delivery Payment Gift Finder implemented Offer fast and economic Implemen
Slide 8: Plenty of initiatives in our international markets
PLENTY OF INITIATIVES IN OUR INTERNATIONAL MARKETS… I. BUSINESS UPDATE Saldi privati Integration Navigation Successful full integration ahead of All features implemented in France have plan for Saldi Privati been rolled-out in our International Improve user markets (new UX, mobile website, search en
Slide 9: ...with already very good results
…WITH ALREADY VERY GOOD RESULTS International internet revenues & growth vs same period the year before I. BUSINESS UPDATE € million +87% +28% excl. Saldi privati +35% +3% +9% excl. Saldi privati -8% 54.1 42.8 31.7 28.9 H2-15 H1-16 H2-16 H1-17 12% of Group 18% of Group Internet revenues Internet rev
Slide 10: H1 results: continued profitable growth
I. BUSINESS UPDATE H1 RESULTS: CONTINUED PROFITABLE GROWTH Net revenue & growth EBITDA & margin € million € million +27% 6.6% 5.3% 306.2 4.5% 15.7 15.2 240.3 13.0 10.9 H1-16 H1-17 H1-16 H1-17 H1-17 Adjusted 1 Excl. Saldi Privati Incl. Saldi Privati Note: 1 EBITDA Adjusted is excluding Saldi Privati
Slide 11: Investing to fuel & secure our H2 growth
INVESTING TO FUEL & SECURE OUR H2 GROWTH Securing our H2 planning Increase in our marketing initiatives with firm purchase opportunities grasped in H1 I. BUSINESS UPDATE Marketing expenses in € million Firm purchases in € million +0.5%PT +€3.9m c. 60% of total +130% +€42.5m inventory are less than 6
Slide 12: II. H1-17 Financial Results
II H1-17 FINANCIAL RESULTS
Slide 13: Revenues growth supported by France and dynamic international markets
REVENUES GROWTH SUPPORTED BY FRANCE AND DYNAMIC INTERNATIONAL MARKETS II. H1-17 FINANCIAL RESULTS Revenues breakdown € million Net Revenue Q2-17 €152m (+24%) +27% 306.2 YoY growth 240.3 243.5 +18% 205.5 54.1 +87% +28% excluding Saldi Privati 28.9 H1-16 H1-17 Reported International France Non-Interne
Slide 14: Always more engaged customers
II. H1-17 FINANCIAL RESULTS ALWAYS MORE ENGAGED CUSTOMERS Average revenue Average Average order Active per buyer Basket size Per buyer buyers € € # million +1.8% +4.4% +6.4% +9.4% +5.4% +0.4% +5.9% +14.1% 124 39.6 3.1 38.9 2.2 117 2.0 1.8 111 3.0 36.9 3.0 H1-15 H1-16 H1-17 H1-15 H1-16 H1-17 H1-15 H1
Slide 15: Stable gross margin vs. H2-16
II. H1-17 FINANCIAL RESULTS STABLE GROSS MARGIN VS. H2-16 Gross margin evolution € million 2016 H1-17 39.7% 37.8% 37.5% 37.4% 0.4% H1-16 H2-16 H1-17 Impact from H1-17 Excl. Reported Saldi Privati Saldi Privati We managed to keep unchanged conversion investments and stabilized our gross margin vs. H2
Slide 16: Operating leverage
II. H1-17 FINANCIAL RESULTS OPERATING LEVERAGE Opex evolution Costs In € million and as % of net revenues (as % of net revenues) Phasing of marketing MARKETING expenses of €1.2m (+0.25%PT) initially planned in H2 and +0.5%PT brought forward in H1 to secure our +1.1%PT 4.8% future growth 3.5% 4.0% (+
Slide 17: EBITDA evolution
II. H1-17 FINANCIAL RESULTS EBITDA EVOLUTION EBITDA evolution € million 2016 H1-17 €15.7m €15.2m €13.1m €13.0m €10.9m 0.9% 6.6% 0.40% 0.40% 4.5 5.3% % 3.6% 4.5% H1-16 H2-16 H1-17 Impact from H1-17 Phasing of Firm purchases H1-17 1 Reported Saldi Privati excl. Saldi marketing storage-related Adjusted
Slide 18: Stable EBITDA in France
II. H1-17 FINANCIAL RESULTS STABLE EBITDA IN FRANCE EBITDA evolution € million FRANCE INTERNATIONAL €15.7m €19.4m €17.1m €18.6m 7.4% 7.6% 7.4% 6.8% 0.1% H1-16 H2-16 H1-17 H1-17 1 (9.2%) (11.4%) Reported Adjusted (16.2%) H1-16 H2-16 H1-17 H1-17 1 Reported Adjusted €0m €-6.9m €-6.2m €-3.4m Note: 1 EBI
Slide 19: Stable recurring cash generation
II. H1-17 FINANCIAL RESULTS STABLE RECURRING CASH GENERATION Recurring cash flow after capex and before tax to net change in cash bridge H1-17 € million (15.3) (56.2) (42.5) (11.4) 15 (2.8) 0.8 Recurring operating Additional Acquisition of 60% Saldi Privati Non recurring items Other Total change in
Slide 20: III. Outlook
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Slide 21: Our plan to boost revenues & margins in H2
OUR PLAN TO BOOST REVENUES & MARGINS IN H2 GROWTH / III. OUTLOOK MARGIN SYNERGIES Conforama, Saldi Privati Beauteprivee + OPERATIONAL EFFICIENCIES Target of €2m OFFERING Monetise firm + purchase opportunities MARKETING grasped in H1 Full benefits from H1 marketing investments + We stand ready for a
Slide 22: Our strategic initiatives for H2
III. OUTLOOK OUR STRATEGIC INITIATIVES FOR H2 Nomination of New a director for Ambitious warehouse Personal International commercial Personalization dedicated to Shopper Continued plan in H2 our shoes Module effort to offering reinforce local teams Dynamic More Faster More Better growth convenience
Slide 23: Guidance summary
III. OUTLOOK GUIDANCE SUMMARY 2017 2020 NET REVENUES €690-720m c. €1.1Bn (y-o-y growth) (+28% – +33%) EBITDA MARGIN 5.5%-6% >7.5% Excluding Saldi Privati CASH FLOW >100% CASH CONVERSION(1) 1 Excluding exceptional items 23
Slide 24: Appendices
APPENDICES
Slide 25: Selected key performance metrics
SELECTED KEY PERFORMANCE METRICS 2015 2016 % Growth H1-16 H1-17 % Growth CUSTOMERS METRICS Cumulative Buyers (in thousands) 5,517 6,757 22.5% 6,042 7,292 20.7% France 4,520 5,562 23.0% 4,960 5,950 20.0% International 997 1,195 19.9% 1,082 1,342 24.0% Buyers (in thousands) 2,867 3,234 12.8% 2,003 2,1
Slide 26: Profit & loss statement
PROFIT & LOSS STATEMENT (€ thousands) 2015 2016 % Growth H1-16 H1-17 % Growth Net revenues 442,832 539,704 21.9% 240,330 306,173 27.4% Cost of goods sold 263,679 332,027 25.9% -144,826 -191,765 32.4% Gross margin 179,153 207,676 15.9% 95,504 114,408 19.8% Gross margin as % of revenues 40.5% 38.5% 39
Slide 27: Segmental information
SEGMENTAL INFORMATION Revenues (€ thousands) 2015 2016 % Growth H1-16 H1-17 % Growth INTERNET REVENUES France 370,012 453,729 22.6% 205,499 243,476 18.5% International 63,236 71,709 13.4% 28,908 54,075 87.1% Total Internet revenues 433,248 525,438 21.3% 234,406 297,551 26.9% Other revenues 9,584 14,
Slide 28: Cash flow statement
CASH FLOW STATEMENT (€ thousands) 2015 2016 H1-16 H1-17 Net income for the period 5,143 -250 705 -210 Adjustments for non-cash items 8,640 18,228 11,211 7,157 Cash flow from operations before finance costs and income tax 13,783 17,978 11,916 6,947 Elim of accrued income tax expense 5,470 2,741 2,274
Slide 29: Balance sheet
BALANCE SHEET (€ thousands) 2015 2016 H1-16 H1-17 NON-CURRENT ASSETS Goodwill 81,576 102,782 81,576 119,080 Other intangible assets 28,861 39,289 29,276 48,472 Tangible assets 14,833 15,626 14,906 15,558 Other non-current assets 1,180 6,902 1,101 6,978 Total non-current assets 126,450 164,599 126,85
Slide 30: Bridge of gross to net sales
BRIDGE OF GROSS TO NET SALES (€ thousands) 2015 2016 H1-16 H1-17 Total gross Internet sales1 591,674 721,606 316,470 397,536 VAT2 -93,515 -113,472 -49,098 -62,287 Revenue recognition impacts3 -68,900 -87,497 -35,369 -42,039 Non-interest revenue and other4 13,573 19,067 8,327 12,963 Net revenues (IFR
Slide 31: Thank you
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