Srp Groupe Sa · EURONEXT:SRP
Srp Groupe Sa — Showroomprivé — FY2016 Earnings Presentation
41 slides from Srp Groupe Sa's earnings presentation, Feb 27, 2017
Slide 1: FY2016 Results
FY2016 RESULTS February, 27th 2017
Slide 2: I Business update
I Business update
Slide 3: 2016: Continued strong performance
2016: CONTINUED STRONG PERFORMANCE SOLID growth / resilient margins / STRONG CASH FLOW GENERATION Net sales of €540m up 22% vs.2015 with an acceleration in Q4 €28.3m EBITDA EBITDA margin stable at 5.4% excluding Saldi Privati (5.2% reported) Very strong cash generation: €35.5m free cash flow1 (126%
Slide 4: Always more engaged customers
ALWAYS MORE ENGAGED CUSTOMERS A growing community… …always more loyal and engaged 3.7M 91% New members Free traffic (+15%) 1.2M 75% NEW buyers Revenue FROM REPEAT BUYERS1 3.2M +5.8% Buyers REVENUE/BUYER2 (+13%) (€159.9) Notes: Data for FY 2016 as of 31/12/2016; Growth % versus FY 2015 1 Based on gro
Slide 5: Took customer experience to the next level
TOOK CUSTOMER EXPERIENCE TO THE NEXT LEVEL Relift of all BETTER E-shopping Offering our platforms experience EXPANSION New look & feel Navigation Ticketing (partnership with Easier & faster (search engine, product France Billet) recommendation) Reinforce travel offering navigation Delivery (Infinity
Slide 6: More than ever a mobile first company
MORE THAN EVER A MOBILE FIRST COMPANY! 6th APP AMONG FRENCH 10M DOWNLOADS +2.2M DOWNLOADS E-TAILERS1 IN TOTAL2 IN 2016 2 77% TRAFFIC 55% SALES3 +50% MORE ORDERS (5.1 orders per year vs. 3.4 for desktop users) Notes: Data for FY 2016 as of 31/12/2016 1 Mediametrie Internet Moibile Nov. 2016; 2 Appann
Slide 7: Successfully rolled out our international strategy
SUCCESSFULLY ROLLED OUT OUR INTERNATIONAL STRATEGY Expanding International footprint SOLID FOUNDATIONS… 8 countries and a multi-currency website French headquarter + 4 international offices More than 110 FTEs o/w 55% dedicated to sourcing … BENEFITING TO THE ENTIRE GROUP AND DELIVERING PROMISING RES
Slide 8: Strengthening of our beauty offering with BeautéPrivée acquisition
STRENGTHENING OF OUR BEAUTY OFFERING WITH BEAUTE PRIVEE ACQUISITION TRANSACTION OVERVIEW Founded in 2007 • Acquisition of a 60% stake (with an option to acquire the remaining 40% in 2019) 3 MM+ members (83% women) • Transaction completed on March 15th, 2017 >800 brand partners STRATEGIC RATIONALE 20
Slide 9: Strong growth and cash flow generation, with resilient margins
STRONG GROWTH AND CASH FLOW GENERATION, WITH RESILIENT MARGINS Recurring cash from operating Net revenue & growth EBITDA & margin activities before tax post Capex € million € million € million 5.4% 5.4% 5.2% +22% 126% OF EBITDA +20% +22% 35.5 531.3 539.7 28.8 28.3 442.8 +36% 23.7 26.1 FY15 FY16 excl
Slide 10: Strong acceleration in growth in Q4 2016 confirmed in Q1 2017
STRONG ACCELERATION IN GROWTH IN Q4 2016 CONFIRMED IN Q1 2017 Net revenues & net revenues growth by quarter € million 31.0% Incl. Saldi Privati contribution 27.1% Quarter Excl. Saldi growth vs. 22.6% Privati contribution 21.6% 195 last year 18.6% 16.1% 186 153 154 117 123 117 96 104 90 105 Q1 16 Q2
Slide 11: II Strategic partnership with Conforama
II STRATEGic partnership with conforama
Slide 12: A disruptive and value-creating partnership
A DISRUPTIVE AND VALUE-CREATING PARTNERSHIP Strategic and commercial agreement to: Leverage the complementary key strengths of Conforama’s physical retail footprint and Showroomprivé’s digital presence and mobile-centric retail platform Strengthen the omnichannel offering of both organisations The b
Slide 13: Key deal parameters
KEY DEAL PARAMETERS 17% strategic investment in Showroomprivé by Steinhoff international’s subsidiary Conforama in connection with a strategic and commercial agreement The transaction will occur via a private sale of shares from the founders in Showroomprivé at €27 per share for a total consideratio
Slide 14: Steinhoff: a global group with a strong foothold in France
STEINHOFF: A GLOBAL GROUP WITH A STRONG FOOTHOLD IN FRANCE • Global, vertically integrated retailer specialised in the • Steinhoff entered the French market in 2011 through the Business overview production and distribution of lifestyle products acquisition of Conforama • Diversified product offering
Slide 15: III FY2016 and Q1 2017 results
III FY2016 AND Q1 2017 RESULTS
Slide 16: Another year of strong growth
ANOTHER YEAR OF STRONG GROWTH Revenues breakdown € million FY 2016 H2 2016 22% growth reported 23% growth reported (20% excl. SP) (20% excl. SP) 531.3 539.7 442.8 290.9 299.4 243.4 453.7 370.0 248.2 207.6 63.2 63.3 31.7 34.4 FY15 FY16 excl. FY16 incl. FY15 FY16 excl. FY16 incl. Saldi Privati Saldi P
Slide 17: We keep attractive margins and invest for the future
WE KEEP ATTRACTIVE MARGINS AND INVEST FOR THE FUTURE Gross margin evolution € million 207.7 Infinity success already materialised by: +16% 100k members +35% purchases Stable basket size 179.2 40.5% (0.35)pt (0.15)pt 40.0% (1.00)pt (0.50)pt 38.5% Conversion investments FY2015 1 2 3 4 FY2016 Product m
Slide 18: Strong operating leverage
STRONG OPERATING LEVERAGE Opex evolution Marketing costs In € million and as % of net revenues (as % of net revenues) Part of marketing budget reallocated in price and free delivery initiatives -1.3% PT -2.0% PT -1.8%PT -2.2%PT 6.1% 7.8% 5.8% 4.8% FY2015 FY2016 H2-2015 H2-2016 36.0% 36.5% 34.2% 34.3
Slide 19: Continued growth in EBITDA
CONTINUED GROWTH IN EBITDA EBITDA € million FY 2016 H2 2016 +22% 28.8 28.3 23.7 13.1 12.5 11.4 FY2015 FY16 excl. FY16 incl. H2-2015 H216 excl. H216 incl. Saldi Privati Saldi Privati Saldi Privati Saldi Privati EBITDA margin 5.4% 5.4% 5.2% EBITDA Bridge FY16 % €28.8m €35.1m (€6.3m) (€0.6m) €28.3m EBI
Slide 20: A highly cash generative business model
A HIGHLY CASH GENERATIVE BUSINESS MODEL EBITDA to net change in cash bridge – 2016 € million 126% Gross Cash Position 31/12/2016 97 2.0 35.5 (8.4) 13.6 28.3 (31.8) (2.3) (7.4) (6.0) EBITDA Recurring Capex Non-Cash Items Recurring M&A Income Tax Other1 Net Change in change Op. CF cash in net WC after
Slide 21: Strong growth surge (+31%) in Q1 2017
STRONG GROWTH SURGE (+31%) IN Q1 2017 Q1 2 0 1 6 Q1 2 0 1 7 %Gr owth Net r evenues (€ million)* 117.3 153.8 3 1 .0 % Total Internet r evenues (€ million)* 114.4 149.3 3 0 .5 % Bu yers (millions)** 1 .3 1 .5 8.4% Revenue per Buyer (€)** 8 5 .3 9 4 .8 1 1 .1 % Nu mber of Orders (millions)** 3 .0 3 .5
Slide 22: IV Outlook
L- a) 4 \y £ (id =i
Slide 23: Doubling our revenues by 2020
DOUBLING OUR REVENUES BY 2020 c. €1.1Bn Business + Expansion Superior + value IRL, our own private label proposition New businesses / ATTRACTIVE Verticals (e.g. Beauty) MARKET Market share gains (vs New countries DRIVERS offline & online players) 2020 Increasing customer engagement €540m E-commerce
Slide 24: Guidance summary
GUIDANCE SUMMARY 2017 2020 NET REVENUES €690-720m c. €1.1Bn (y-o-y growth) (+28% – +33%) EBITDA MARGIN >6% >7.5% Excluding Saldi Privati CASH FLOW >100% CASH CONVERSION(1) 1 Excluding exceptional items 24
Slide 25: V Appendices
V APPENDICES
Slide 26: Company presentation
Company presentation
Slide 27: We are entrepreneurs with roots in fashion sales and online marketing
WE ARE ENTREPRENEURS WITH ROOTS IN FASHION SALES AND ONLINE MARKETING COMPANY PRESENTATION Thierry Petit David Dayan Co-Founder and Co-CEO Co-Founder and Co-CEO 16 years experience 25 years experience in e-commerce and online in fashion sales marketing Prior to founding Prior to founding Showroompri
Slide 28: We are re-inventing the way women discover and shop for high street fashion
WE ARE RE-INVENTING THE WAY WOMEN DISCOVER AND SHOP FOR HIGH STREET FASHION COMPANY PRESENTATION Curated shopping experience for digital women 12-15 new great deals, every day, on well-known and up-and-coming brands Mobile-first France + 8 countries in Europe Strong revenue growth, profitability, an
Slide 29: We are focused on the needs of digital women
COMPANY PRESENTATION WE ARE FOCUSED ON THE NEEDS OF DIGITAL WOMEN… …which is A strong engaged community… and loyal 28m members(1) 56M visits/month in 2016 68% are women of which buyers 76% were women of 2016 91% of free traffic in 2016 of these female buyers repurchase intent 70% years were 25-50 ol
Slide 30: As well as our brand partners
COMPANY PRESENTATION … AS WELL AS OUR BRAND PARTNERS A large and fashion oriented offering… …supported by loyal partners… 80% Sales Sport from Recurring Shoes Ready-to-wear Brands2 Fashion …always growing their business with us… accessories Beauty 53% sales1 +14% Sales growth From fashion from recur
Slide 31: We offer a differentiated retail proposition to members and brand partners
WE OFFER A DIFFERENTIATED RETAIL PROPOSITION TO OUR MEMBERS AND BRAND PARTNERS COMPANY PRESENTATION 6.8m CUMULATED ~12-15 NEW SALES EVENTS PER DAY >1,900 BUYERS BRANDS 80% CONSIGNMENT/ ~50-70% off retail prices 20% FIRM SALES Manage excess inventories Curated selection Protect brand image Fun, engag
Slide 32: We convert members into buyers and drive repeat purchases
WE CONVERT MEMBERS INTO BUYERS AND DRIVE REPEAT PURCHASES INCREASINGLY QUICKLY COMPANY PRESENTATION 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) Firs
Slide 33: Detailed Financials
Detailed Financials 33
Slide 34: Selected key performance metrics
SELECTED KEY PERFORMANCE METRICS 2015 2016 % Growth H2-15 H2-16 % Growth DETAILED FINANCIALS CUSTOMERS METRICS Total Members (in thousands) 24,568 28,282 15.1% 24,568 28,282 15.1% France 16,787 19,553 16.5% 16,787 19,553 16.5% International 7,781 8,729 12.2% 7,781 8,729 12.2% Cumulative Buyers (in t
Slide 35: Profit & loss statement
PROFIT & LOSS STATEMENT (€ thousands) 2015 2016 % Growth H2-15 H2-16 % Growth Net revenues 442,832 539,704 21.9% 243,414 299,373 23.0% DETAILED FINANCIALS Cost of goods sold 263,679 332,027 25.9% 145,180 187,202 28.9% Gross margin 179,153 207,676 15.9% 98,234 112,171 14.2% Gross margin as % of reven
Slide 36: Segmental information
SEGMENTAL INFORMATION Revenues (€ thousands) 2015 2016 % Growth H2-15 H2-16 % Growth DETAILED FINANCIALS INTERNET REVENUES France 370,012 453,729 22.6% 207,589 248,230 19.6% International 63,236 71,709 13.4% 31,664 42,801 35.2% Total Internet revenues 433,248 525,438 21.3% 239,253 291,031 21.6% Othe
Slide 37: Cash flow statement
CASH FLOW STATEMENT (€ thousands) 2015 2016 H2-15 H2-16 Net income for the period 5,143 -250 85 -955 DETAILED FINANCIALS Adjustments for non-cash items 8,640 18,228 6,308 7,017 Cash flow from operations before finance costs and income tax 13,783 17,978 6,393 6,062 Elim of accrued income tax expense
Slide 38: Balance sheet
BALANCE SHEET (€ thousands) 2015 2016 NON-CURRENT ASSETS DETAILED FINANCIALS Goodwill 81,576 102,782 Other intangible assets 28,861 39,289 Tangible assets 14,833 15,626 Other non-current assets 1,180 6,902 Total non-current assets 126,450 164,599 Current assets Inventory 57,068 82,638 Accounts recei
Slide 39: Bridge of gross to net sales
BRIDGE OF GROSS TO NET SALES (€ thousands) 2015 2016 H2-15 H2-16 DETAILED FINANCIALS Total gross Internet sales1 591,674 721,606 329,092 405,136 VAT2 -93,515 -113,472 -55,456 -64,374 Revenue recognition impacts3 -68,900 -87,497 -36,388 -52,128 Non-interest revenue and other4 13,573 19,067 6,163 10,7
Slide 40: 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 41: Thank you
THANK YOU Investor.relations@showroomprive.com