Elumeo Se · XETR:ELB
Elumeo — Non-Deal Roadshow (December 2017)
42 slides from Elumeo's roadshow presentation, December 2017
Slide 1: The leading electronic retailer for gemstone jewelry in Europe
The leading electronic retailer for gemstone jewelry in Europe Investor Presentation 2017
Slide 2: Table of contents
Table of contents Pi | elumeo at a glance elumeo’s business model Successful turnaround and way forward Financials Outlook 2017 Appendix ao uu FB WN
Slide 3: elumeo at a glance
elumeo at a glance Key facts Key financials and key performance indicators * elumeo is the leading manufacturer and electronic 2009" 2016” CAGR 09-16 retailer of gemstone jewelry in Europe Revenues (€m) 19.2 71.5 20.7% * Our mission is to make fine jewelry an affordable Products sold®) 291k 894k 17.
Slide 4: Management team
Management team: more than 70 years of combined professional experience a \ j Loot : cae wit wll Boris Kirn Thomas Jarmuske Deborah Cavill Wolfgang Boyé Bernd Fischer Don Kogen Mitsunari Yoshimoto Chief Operating Chief Merchandising Non-executive Chairman of the Chief Financial Vice Chairman Chief P
Slide 5: After a very successful launch elumeo struggled and is now back on track
After a very successful launch elumeo struggled and is now back on track Development of Segment EBITDA’ Key facts 10,000 € * After launching in 2008 elumeo became 8,000 € profitable very fast 6,000 € = From 2012 to 2014 elumeo sacrificed 4,000 € profitability for international growth but 2,000 € rem
Slide 6: Table of contents
Table of contents 1 elumeoata glance a elumeo’s business model Successful turnaround and way forward 4 Financials 5 Outlook 2017 6 Appendix
Slide 7: Europe's Online Jewelry Market continues to grow at double-digit rate
Europe’s Online Jewelry Market continues to grow at double-digit rate Total Market Size Europe Online Sales Europe EUR million 2015 - 2016 EUR million 2015 - 2016 35000 +0.4% +13.3% ————_—_—_> 2000 _ ee” 30000 1600 ote 25000 16,381 16,327 840 1200 20000 128 125 180 15000 800 169 548 10000 4a7 400 50
Slide 8: Huge transformation opportunity ahead
Huge transformation opportunity ahead The top 25 players in the European market for fine jewelry elumeo’ oO LINKS Cartier GOLDSMITHS PANDORA Ac H.SAMUEL TIFFANY & Co. THE JeWeLces ~ BUCHERER BEAVERBROOKS os Van Cleef a Arpels CHAUMET BVLGARI De Beers 2010-2015 jewelry revenue CAGR™ Ce) Bubble size r
Slide 9: Transformation will be driven by four forces
Transformation will be driven by four forces Lessons learned from innovation in retail 70-80 % of market non branded 1925 1950 1975 2000 Oo Oo ‘Oo ‘Oo ZARA 29 Woolworth MEA] Yff [Al wamar>: Relnann ==" 2 Hl AM PRIMARK’ Vv VT YW » 4 P| Vertical integration | > 2 | Price leadership | > EB) rernationai
Slide 10: Three pillars provide strong competitive advantages
Three pillars provide strong competitive advantages Vertically integrated and scalable value chain Traditional jewelers Gemstone > sourcing > Production > Distribution > Customer \ elumeo / Integrated l Gemstone > Sourcing > Production &> Customer Distribution Up to 4 times faster and strong price a
Slide 11: elumeo makes fine jewelry an affordable luxury for everyone
elumeo makes fine jewelry an affordable luxury for everyone Positioning towards affordable luxury Sample product portfolio ts) , © © 4 Black Diamond Blue Topaz Black Star Sapphire a AAA Tanzanite Amethyst (Uruguay) Laos Sapphire <a) Ser Gold South Sea Pearl Jade st | \weaoenret et t Capelinha F Diam
Slide 12: elumeo's customers continue to show high level of loyalty
elumeo’s customers continue to show high level of loyalty Active Customers 2012-17e° 75,923 79,943 84,587 _—-86,887 1,907 , 57,225 58,457 = 19,259, 17,898 18,042 9,308 9,907 47,9179 48,6409 1052 2012 2013 2014 2015 2016 2017¢° mGermany mitaly mOther 1,889 63,421) 166,686 High level of client loyalty
Slide 13: Continuous investment in elumeo's eCommerce platforms
Continuous investment in elumeo’s eCommerce platforms to achieve 24/7 customer access Online Shop Unique visitors (‘000) = Websites currently available in several European languages such as German, English, Italian, French, Dutch and Spanish * Proprietary multi language product database allows fast
Slide 14: elumeo's growth strategy founded on three pillars
elumeo’s growth strategy founded on three pillars Pe | Drive digitalisation P| Enhance cost leadership * Rollout of Mobile App and Bidding Agent across Europe = Optimise production = Mobile App including video stream = Automate logistics = Further development of Smart TV = Leverage purchasing power
Slide 15: elumeo made progress on all three strategic areas in 2015 and 2016
elumeo made progress on all three strategic areas in 2015 and 2016 P| Enhance cost leadership a Drive digitalisation J fexpand = = New Factory in Chanthaburi Enhanced customer = Webshop Belgium = Automated warehouse in the experience in Germany = Webshop USA UK and Germany * Mobile Apps in GER, ITA,
Slide 16: Table of contents
Table of contents 1 elumeoata glance 2 elumeo’s business model PS | successful turnaround and way forward | 4 Financials 5 Outlook 2017 6 Appendix
Slide 17: elumeo ran into trouble in 2015 and 2016 for three major reasons
elumeo ran into trouble in 2015 and 2016 for three major reasons After years of a stable exchange rate between the Euro and the Thai Baht the Euro in the beginning of 2015 lost more than 15% of its value in at a historically unprecedented fast pace. More than 60% of the cost of goods sold are direct
Slide 18: Gains in efficiency offset by low Thai Baht exchange rate
The gains in efficiency have been offset by the historically low exchange rate between Thai Baht and Euro/GBP Thai Baht and Euro/GBP = The THB/€ exchange rate directly drives 70 gemstone and labor cost as well as third 65 party purchases in the COGS = These cost comprise more than 65% of 60 total CO
Slide 19: Recovery of the group has been founded on four main pillars
Recovery of the group has been founded on four main pillars Reduction of operation cost all across the group in order to reduce the fixed cost base Introduction of more branded goods with a higher value appeal in order to be able to pass some of the cost increases on to our customers Full restructur
Slide 20: Cost of operations continue to decline in Q3
Cost of operations continue to decline in Q3 Selling Expenses Administrative Expenses “ -17% “9% 7,716 3,457 7,363 = 7,295 7,264 Q1 2016 Q22016 Q32016 Q42016 Q12017 Q22017 Q3 2017 Q12016 Q22016 Q32016 Q42016 Q12017 Q22017 Q32017 m= Depreciation and other m Personnel expenses mSales and marketing exp
Slide 21: Germany and Italy grow sustainably
Germany and Italy grow sustainably New formats and sales initiatives continue to show positive impacts Fea Shiny Future 4 7 ED ss. KINDERDORFER Revenue Development Germany and Italy (€) 232,276 ” 228,213 5,223 +15.6% 27,053 Q2+Q3 2016 Q2+Q3 2017 mGermany mitaly
Slide 22: The newly introduced B2B business shows strong growth again
The newly introduced B2B business shows strong growth again Dedicated jewelry collections Revenue Development (€ ‘000) AMAYANI IF +81.9% Cavill fMolloy B2B
Slide 23: eCommerce continues to show highest growth rates
eCommerce continues to show highest growthrates Development of continental European eCommerce (€ mn) Key facts * elumeo’s continued investment into eCommerce has resulted in an increase of revenues in this field Highest growth rates for mobile applications * Share of web-only new customers for Germa
Slide 24: elumeo has returned to profitability as expected
elumeo has returned to profitability as expected Development Total segment EBITDA =—— Total segment EBITDA in€ mn Key facts = After challenging results in 2015/2016 elumeo SE shows significantly improved profitability in 2017 again = Significant reduction in operating costs in all major sales territ
Slide 25: Table of contents
Table of contents 1 elumeoata glance 2 elumeo’s business model 3 Successful turnaround and way forward 5 Outlook 2017 6 Appendix
Slide 26: Summary of 9M 2017 results
Summary of 9M 2017 results Group's total revenues for 9M 2017 increased by 5% to EUR 56.5 million after EUR 53.7 million in 9M 2016 = Germany with strong growth of 20% in 9M 2017 and 21% in Q3 2017 against the respective prior year period. New programme schedules have driven revenues and have been v
Slide 27: 9M 2017 vs. 9M 2016 performance
9M 2017 vs. 9M 2016 performance - Revenues 45.2% 56.5 53.7 rT] Total segment EBITDA and margin Overview Gross profit 44.3% 41.1% hs 23.8 -2.5% 23.2 Ll _ Comments Germany is driving revenue growth with 19.6% higher revenues in 9M 2017 compared to 9M 2016 Italy revenues now almost on prior year level
Slide 28: Q3 2017 vs. Q3 2016 performance - Overview
Q3 2017 vs. Q3 2016 performance - Overview Revenues Gross profit 43.5% +9.4% 42.1% 20.2 ah tes ee a 8.0 +5.7% 8.5 a Ll . as Total segment EBITDA and margin Comments 0.2 « Germany continues to show strong revenue — growth in Q3 2017 * |taly again with positive development against 1.1% comparable prio
Slide 29: Revenue split by region
Revenue split by region Q3 2017 Q3 2016 QoQ 1 Jan - 1 Jan - 9Mo9M EUR thousand | % of revenue from product sales in % 30 Sep 2017 = 30 Sep 2016 in % Germany 13,313 66.0% 11,027 59.8% 20.7% 38,715 68.6% 32,375 60.3% 19.6% Italy 2,729 135% 2,564 13.9% 6.4% 7,589 13.4% 7,738 14.4% -19% United Kingdom 2
Slide 30: Table of contents
Table of contents elumeo at a glance elumeo’s business model Successful turnaround and way forward Financials 1 2 3 4 PS] outoon207 6 Appendix
Slide 31: 2017 Outlook
2017 Outlook In 2017 elumeo will benefit from a large number of initiatives to reduce operational cost * Efficiency has been increased in all territories resulting in a higher productivity and lower cost. * In particular broadcasting costs and personnel costs have been reduced in all territories. Af
Slide 32: Table of contents
Table of contents elumeo at a glance elumeo’s business model Successful turnaround and way forward Financials Outlook 2017 1 2 3 4 5 BE] avpendn
Slide 33: Consolidated statement of income
Consolidated statement of income Note Q3 2017 Q3 2016 QoQ 1 Jan - 1 Jan - 9Mo9M EUR thousand | % of revenue in % 30 Sep 2017 30 Sep 2016 in % Revenue (2) 20,192 100.0% 18,456 100.0% 9.4% 56511 100.0% 53,709 100.0% 5.2% Cost of goods sold 11,700 57.9% _10,422 56.5% 12.3% _ 33,281 58.9% 29,904 55.7% 1
Slide 34: Group segment reporting - 9M Jan - Sep 2017
Group segment reporting - 9M 1 Jan - 30 Sep 2017 Revenue Gross Segment- EUR thousand | % of (segment) revenue profit EBITDA Sales division Germany & Italy 46,354 82.0% 19,241 41.5% 127 0.3% Sales division Others 10,158 18.0% 2,049 20.2% -1,844 -18.2% Group functions & eliminations ie} 0.0% 1,940 na
Slide 35: Group segment reporting - Q3
Group segment reporting - Q3 Q3 2017 Revenue Gross Segment- EUR thousand | % of (segment) revenue profit EBITDA Sales division Germany & Italy 16,066 79.6% 7,030 43.8% 793 4.9% Sales division Others 4,127 20.4% 834 20.2% -423 -10.2% Group functions & eliminations 0 0.0% 628 na. -153 na Total 20,192
Slide 36: Split of selling expenses
Split of selling expenses Q3 2017 Q3 2016 QoQ 1 Jan - idan - 9Mo9M EUR thousand | % of revenue in % 30 Sep 2017 30 Sep 2016 in % Broadcasting and channel rental costs 2,205 10.9% 3,284 17.8% -32.9% 7,258 128% 10,374 19.3% -30.0% Personnel expenses 1631 81% 1,729 9.4% -5.7% 4835 86% 4949 9.2% -2.3% E
Slide 37: Split of administrative expenses
Split of administrative expenses Q3 2017 Q3 2016 QoQ 1 Jan - i Jan - 9Mo9M EUR thousand | % of revenue in % 30 Sep 2017 30 Sep 2016 in % Personnel expenses 1149 5.7% 1337 72% -140% 3,652 65% 4307 8.0% -15.2% Depreciation and amortisation 156 08% 142 0.8% 9.4% 488 0.9% 493 0.9% -1.0% Equity-settled s
Slide 38: Total segment EBITDA
Total segment EBITDA Q3 2017 Q3 2016 QoQ 1 Jan - EUR thousand | % of revenue in % 30 Sep 2017 Total segment FBITDA 217 11% _-1,485 -8.0% 114.6% -2,137 -3.8% Effects from foreign currency translation 352 1.7% -736 -4.0% 147.8% 639 11% Equity-settled share-based remuneration -73__ -U4% -153 -0.8% 52.1
Slide 39: Consolidated statement of financial position
Consolidated statement of financial position ASSETS 30 Sep 2017 31 Dec 2016 =Change EUR thousand | % of balance sheet total in % Non-current assets Intangible assets 780 1.3% 925 15% -15.7% Property, plant and equipment 9,997 16.7% 11244 18.1% -11.1% Other financial assets 508 08% 522 0.8% -2.8% Oth
Slide 40: Consolidated statement of financial position
Consolidated statement of financial position EQUITY & LIABILITIES 30 Sep 2017 31 Dec 2016 Change EUR thousand | % of balance sheet total in% Fquity Issued capital 5,500 9.2% 5,500 8.9% 0.0% Capital reserve 34123 57.0% 33,862 54.5% 0.8% Retained losses -9,049 -151% -5,408 -8.7% -67.3% Foreign currenc
Slide 41: Consolidated statement of cash flows
Consolidated statement of cash flows Note iJan- 1 Jan - 9Mo9M EUR thousand 30 Sep 2017 30 Sep 2016 in% Earnings before taxes (EBT) -3,019 =9,501 _ 68.2% +/- Depreciation and amortisation on non-current assets +1,259 +1296 -29% +/- Increase/decrease in provisions -278 H1L 253.6% +/- Equity-settled sh
Slide 42: Points of contact
Points of contact Executive Board Wolfgang Boyé, Don Kogen, Bernd Fischer, Boris Kirn, Thomas Jarmuske, Deborah Cavill, Anette Bronder, Roland Sand Investor Relations contact Claudia Erning Erkelenzdamm 59/61 10999 Berlin E-Mail: ir@elumeo.com Phone: +49 30 69 59 79-231 Fax: +49 30 69 59 79-650