Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Q3 2021 Earnings Presentation
17 slides from Nelly Group Ab's earnings presentation, Oct 20, 2021
Slide 1: Investor Presentation Q3 2021
INVESTOR PRESENTATION Q3 2021 20 OCTOBER
Slide 2: Our journey from a loved brand towards social commerce
Our journey from a loved brand towards social commerce We are building a company that shall generate sustainable and attractive returns. A key fundamental for this is our loved community powered brand – enabling high frequency, low cost of sales and appealing margins. Kristina Lukes John Afzelius, C
Slide 3: An integral part of the young woman's everyday life
An integral part of the young woman’s everyday life Founded in 2004 in Borås Built through influencer marketing A community of Nordic consumers Making 1.2 million customers look & feel fab
Slide 4: We exist thanks to our loyal & engaging community
We exist thanks to our loyal & engaging community 1.3M FOLLOWERS ON SOCIAL MEDIA ROLL OUT OF 19% 46% CUSTOMER PANELS OWN BRAND OF TARGET TO GAIN INSIGHT SHARE OF SALES GROUP VISIT US WEEKLY TIKTOK 96% 2.7M 1.2M DOUBLE FOLLOWING COMPLETION RATE ORDERS ACTIVE IN Q3 ON INSTAGRAM CUSTOMERS
Slide 5: Q3 2021 Highlights
Q3 2021 Highlights Strong Warehouse inventory Bianca project turnover X closed on & Nelly time and sound below balance budget sheet
Slide 6: Healthy conversion and basket size development, but challenging traffic generation
Healthy conversion and basket size development, but challenging traffic generation NO OF CUSTOMERS Active Active Nordic Nordic Customers Customers R12 2021 R12 2020 1 134 000 1 125 000 24M Nordic 23M Sessions Nordic Sessions 2.2% 2.4% Q3 20 Q3 21 Q3 21 767 Q3 20 755 Q3 20 Q3 21 TOTAL TRAFFIC CONVERS
Slide 7: Transitioning from expensive paid traffic to organic
Transitioning from expensive paid traffic to organic FROM: TO: INFLUENCER MARKETING LIVE- INFLUENCER SHOPPING MARKETING
Slide 8: Repositioning the brand Nelly
Repositioning the brand Nelly Young women More occasions Added & strengthened 15 – 25 (Everyday, special attributes occasions & party)
Slide 9: Warehouse project closed on time and below budget
Warehouse project closed on time and below budget Project closed on time in Q3 Project cost 25% lower than estimated CAPEX 6% below budget Standardized automation system Cost efficiency target of (AutoStore) with 80 000 bins SEK 35 million confirmed Cost efficiency target Time to customer Improved R
Slide 10: Q3 2021 Income statement
Q3 2021 Income statement 2% net revenue growth SEK 1m lower gross profit, underlying (SEK million) Q3 20 Q3 21 improvement Net revenue 306 313 Gross profit 144 143 -1 -4 SEK 10m higher fulfilment and distribution cost, underlying cost Gross margin 47.1% 45.9% improvement Fulfilment and distribution
Slide 11: Q3 2021 – Operational & Financial Highlights
Q3 2021 – Operational & Financial Highlights Warehouse project • SEK 35m annual cost improvement target confirmed closed on time & below • SEK 103m capex, 6% lower than SEK 110m budget budget • SEK 26m project cost, 25% below SEK 35-45m range Continued good control • Continued strong inventory turno
Slide 12: Shaping a sound and sustainable Nelly, with her
Shaping a sound and sustainable Nelly, with her Empower Respect Fair & femininity the planet Equal • 66% female staff • 100% increase of more • Transparency on product level sustainable materials vs LY, (supplier info, tier 1) prepared • Majority of warehouse staff reached goal (FY 2021) of 20% fema
Slide 13: Nelly – A Platform for Inspiration
Nelly – A Platform for Inspiration
Slide 14: Repositioning our brand towards our most profitable and loyal consumer, Denise
Hair Beauty Repositioning our brand Jewelry towards our most profitable and loyal consumer, Denise Fashion She shops 18 times a year for her appearance Fashion Bag Fashion Intimate Nails Phone case
Slide 15: Encourage her to always feel fab with a head-to-toe look
Encourage her to always feel fab with a head-to-toe look – and needs beyond fashion Our strategy for growth Accessories Nails/ Hair Lashes Beauty Intimate Fashion Flamboyant Flamboyant fun 15% fun 15% Always Always look fab feel fab Party focus Fashion market Fashion market Feel fab market Low frequ
Slide 16: Nelly is a large brand in the mind of the young Nordic fashionista
Nelly is a large brand in the mind of the young Nordic fashionista Market Mental share share Nelly market share: ~4% Nelly mental share: Sizewise close to H&M and Zalando Market share: Meniga card data Sweden Sept 2021 R12M, WMN <25 yrs, total transactions Mental share: NEPA consumer tracking SE Sep
Slide 17: Thanks!
Thanks!