Slide 1: Douglas Investor Presentation August 2022
LOUGLAS August 2022
Slide 2: Douglas Investment Highlights
DOUGLAS INVESTMENT HIGHLIGHTS Europe’s leading and Douglas is Europe’s #1 A diversified leader in large, innovative online beauty premium beauty destination2 structurally growing and platform with ~€1.2bn sales1, resilient European beauty growing at c.30% CAGR for market the last 10 years Winning an
Slide 3: Douglas is the leading beauty platform in Europe's premium beauty market
DOUGLAS IS THE LEADING BEAUTY PLATFORM IN EUROPE'S PREMIUM BEAUTY MARKET IN 2019 Premium sales, 2019 (€m) We generate Ca. almost same premium sales as Douglas’ 2,550 core geo- the next 3 competitors in graphies2 Douglas’ #1 position3 total in core drives future geographies2 economies of scale, attra
Slide 4: Douglas: Synonym for beauty across Europe
DOUGLAS: SYNONYM FOR BEAUTY ACROSS EUROPE Customer The eminent perception of Douglas brand Douglas2 power drives traffic Unmatched brand awareness1 and customer acquisition at Truly a Synonym for beauty in all of its low cost markets unique brand… Highly trusted ... with leading Premium image awaren
Slide 5: Omnichannel champion with growing share of most valuable omnichannel customers
OMNICHANNEL CHAMPION WITH GROWING SHARE OF MOST VALUABLE OMNICHANNEL CUSTOMERS Share of customers shopping ~2x omnichannel (%) While the overall share of omnichannel customers is increasing, the > 2x > 2x percentage is almost twice as high among 29% the young key customer group 19% 17% 12% 359 148 1
Slide 6: European beauty is a large, structurally growing and resilient market
EUROPEAN BEAUTY IS A LARGE, STRUCTURALLY GROWING AND RESILIENT MARKET MARKET VOLUME1 (€BN) The European beauty market is worth €92bn, Online has been growing particularly fast and more than doubled in out of which Douglas’ key product categories market size within the premium segment between 2015 an
Slide 7: Unique market characteristics – need for a trusted premium curator
UNIQUE MARKET CHARACTERISTICS – NEED FOR A TRUSTED PREMIUM CURATOR IN A SHIELDED DISTRIBUTION SYSTEM Manufacturer Customer Hundreds of brands Millions of customers Trusted premium curator Selective distribution In order to ensure that their brand is presented in line with their premium positioning,
Slide 8: #ForwardBeauty.DigitalFirst
#FORWARDBEAUTY.DIGITALFIRST STRATEGY EXECUTION UPDATE BEAUTY PLATFORM 1 Brand positioning E-COMMERCE ONLINE SHOP PARTNER PROGRAMME 8 3 ASSORTMENT 5 CURATION / CRM Choice & innovation Inspiration & personalisation 4 SUPPLY CHAIN 6 TECHNOLOGY Customer Operational excellence Data-driven culture Partner
Slide 9: We upgraded and rejuvenated the Douglas brand
WE UPGRADED AND REJUVENATED 1 THE DOUGLAS BRAND MORE MODERN AND NEW VISUAL NEW PREMIUM POSITIONING LANGUAGE LOGO 9 Brand Store Assortment Supply Chain CRM Technology
Slide 10: Our stores: from point of sale to point of experience
OUR STORES: FROM POINT OF SALE TO POINT OF 2 EXPERIENCE Flagship Luxury Prestige Premium AI-based ordering DOUGLAS Warehouse Network of 5 OWAC1 AI-based replenishment Major city, high Prime location Premium Mainstream DOUGLAS E-Com order Store traffic location, with luxury wealthy shopping E-Com ord
Slide 11: Assortment: clear differentiation with nearly 300,000 beauty products
ASSORTMENT: CLEAR DIFFERENTIATION WITH 3 NEARLY 300,000 (2) BEAUTY PRODUCTS BEAUTY HAIR DERMA BEAUTY ACCESORIES & JEWELLERY WITH NEARLY 300,000 SKUS DOUGLAS HAS THREE TIMES AS MANY SKUS AS ITS CLOSEST COMPETITOR 1 236 partners as of 31 Mar 2022 in Germany, Austria, France, Poland live, Italy go live
Slide 12: Douglas Brands important pillar of the Douglas assortment
DOUGLAS BRANDS 3 IMPORTANT PILLAR OF THE DOUGLAS ASSORTMENT STRATEGIC RELEVANCE JARDIN BOHÈME › Superior profitability › Premium affordable fine fragrance offer › Strong NES growth (+56 %) vs. Q2 PY › Top rotations on industry level for bestsellers › TOP 6 “supplier” within Douglas DE in Q2* › TOP 1
Slide 13: Category trends
CATEGORY TRENDS 3 POST-LOCKDOWN PUSH TO FRAGRANCES AND MAKE-UP › Strong growth in Germany due to › Recording very good growth, high catch-up effect particularly on lips, sets and nails › Growth driven by luxury brands, › Significant sales growth in vegan men’s fragrances and blockbuster products lau
Slide 14: Integration of Disapo on schedule
INTEGRATION OF DISAPO ON SCHEDULE 3 HEALTH OFFERING LIVE AT DOUGLAS.DE SINCE MAY April 22: Successful closing of Disapo acquisition May 22: Beauty & Personal Care and OTC assortment live on DOUGLAS.de as part of Partner Program (additional 11,000 SKUs) June 22: 360 marketing campaign for Health offe
Slide 15: Our integrated physical and digital supply chain
OUR INTEGRATED PHYSICAL 4 AND DIGITAL SUPPLY CHAIN PHYSICAL SUPPLY CHAIN › New go-to-market supply chain strategy: One Warehouse, All Channels (OWAC) OWAC sites › 5 OWAC sites to be built to enable E-Com growth and marketplace partner fulfilment by Douglas with up to 150k SKUs per site in total, rep
Slide 16: Douglas DataHub is the key enabler for the machine learning data strategy
DOUGLAS DATAHUB IS THE KEY ENABLER FOR THE 5 HOLISTIC MACHINE LEARNING DATA STRATEGY OFFLINE DATA RETAIL MEDIA DATA CRM DATA MARKETPLACE DATA DOUGLAS WEBSITE DATA PERFORMANCE MARKETING DATA ANALYTICS DATA BI-DIRECTIONAL DATA EXCHANGE UNIDIRECTIONAL DATA EXCHANGE DOUGLAS APP DATA 16 Brand Store Assor
Slide 17: CRM: 1:1 curated customer communication in all channels
CRM: 1:1 CURATED CUSTOMER COMMUNICATION 5 IN ALL CHANNELS › Personal beauty tips › Personalised start page › Personalised offers › Customer master data › Individualised product news › Beauty points, coupons & › Inspirational content › Personal salutation › Targeted product rewards › Push notificatio
Slide 18: Successful Partner Program in 6 countries
SUCCESSFUL PARTNER PROGRAM IN 6 COUNTRIES 5 ITALY GO-LIVE END OF MAY 2022 288 294k 193 179k Q3 2020/21 Q3 2021/22 Q3 2020/21 Q3 2021/22 NUMBER OF PARTNERS NUMBER OF PARTNER SKUS ALL COUNTRIES* ALL COUNTRIES* Partner Program live 18 * Incl. small brands via enablers; Source: Live SKU Report; Countrie
Slide 19: Digital infrastructure in place
DIGITAL INFRASTRUCTURE IN PLACE 5 Omni- Channel BW Business Commerce Customer Intelligence Cloud Data Cloud store FICO Accounting COVID resulted in Online acceleration – Douglas’ established technological infrastructure copes with changing buyer behaviour ERP LES Marketing Cloud 19 Brand Store Assor
Slide 20: Launch of Store Optimization Program
LAUNCH OF STORE OPTIMIZATION PROGRAM IN LINE WITH #FORWARDBEAUTY.DIGITALFIRST Sustainable shift from offline to online High number of stores Change of customer behavior in post-Covid within same catchment new normal with reduced store traffic areas drive potential to capture offline revenue Re-balan
Slide 21: Optimized store portfolio will increase EBITDA
OPTIMIZED STORE PORTFOLIO WILL INCREASE EBITDA STORE PORTFOLIO OPTIMIZATION ILLUSTRATIVE Current Store Revenue Revenue P&L After Store Portfolio Transfer Transfer Closures Closure of stores with negative or low profitability Online Channel Offline Channel Net Revenue transfer to nearby EBITDA effect
Slide 22: Store Optimization Program and #ForwardOrganization completion by end of FY21/22
STORE OPTIMIZATION PROGRAM AND #FORWARDORGANIZATION COMPLETION BY END OF FY21/22, SPANISH RESTRUCTURING FY 22/23 EBITDA potential One-offs cash Main lever Comments (€m) (€m) Optimisation of store portfolio based on analysis of catchment areas Selection of future store network based on performance, S
Slide 23: SOP implementation overview
SOP IMPLEMENTATION OVERVIEW FULLY ON TRACK, 100% OF RUN RATE SAVINGS ACHIEVED STATUS 30/06/2022 STORE CLOSURES / LEASE FTE REDUCTIONS1 RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES1 (# OF STORES) Contracts terminated Store 58% re-negotiation 60% Stores closed 93% in closure stores c
Slide 24: First Sustainability Report 2021 published in June
FIRST SUSTAINABILITY REPORT 2021 PUBLISHED IN JUNE 24
Slide 25: Douglas' ESG strategy: four pillars – seven material topics
DOUGLAS’ ESG STRATEGY FOUR PILLARS – SEVEN MATERIAL TOPICS 1. Customer satisfaction & 4. Sustainable assortment 5. CO2 equivalent emission 7. Ownership of executive board experience & own brands reduction on ESG topics Customer satisfaction Clean beauty Scope 1: Direct emissions Incentivization Digi
Slide 26: ESG pillars: people and products
ESG PILLARS PEOPLE AND PRODUCTS › Our share of women in leadership positions has already › Almost 100% of new DOUGLAS Brands releases reached 54%; our aim is to keep this ratio at least close to since 2020 have been microplastic free this level › 93% of new DOUGLAS Brands releases in FY 20/21 › 18,2
Slide 27: ESG pillars: planet and governance
ESG PILLARS PLANET AND GOVERNANCE › We want to be carbon-neutral by 2025. Thus, we aim to › We are continuously improving IT security and data privacy reduce Scope 1 and Scope 2 emissions by at least 50% mechanisms and compensate for remaining emissions › Our group risk management approach identifie
Slide 28: Summary
SUMMARY Transformation to an integrated, digital beauty and health platform reflects the changes in consumer behavior Store closures are a consequence of the digital transformation Remaining stores become part of the integrated, digital beauty platform Positive effects on EBITDA enable us to further
Slide 29: Q3 2021/22 Financials
CLOSER LOOK Q3 2021/22 FINANCIALS
Slide 30: Net sales development by segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q3 2021/22 Total, in m€ DACHNL FRANCE 441 160 304 +45.0% 131 +22.1% GROUP 830 + 39.5% lfl + 27.7% lfl 644 +28.8% Q3 2020/21 Q3 2021/22 Q3 2020/21 Q3 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 124 117 113 + 35.2% lfl -5.7% 79 +42.5% + 24.9% lfl + 42.6% lfl Q
Slide 31: Net sales development by segment: E-Commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q3 2021/22 E-Commerce, in m€ DACHNL FRANCE 205 185 +10.5% GROUP -1.2% lfl 39 30 276 -23.4% 262 +5.3% Q3 2020/21 Q3 2021/22 Q3 2020/21 Q3 2021/22 - 2.9% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE +87.3% lfl vs. pre- 22 23 16 18 +6.9% COVID +12.3% Q3 2020/21
Slide 32: E-Com and Brick & Mortar complement each other
E-COM AND BRICK & MORTAR COMPLEMENT EACH OTHER IMPRESSIVE LONG-TERM E-COM GROWTH SALES SHARE E-COM AND BRICK & MORTAR NET SALES (in m€) 1,199 1.208 762 644 830 1.155 CAGR June 2022 817 LTM vs. FY 2010/11 59,3% 66,6% B&M 82,7% 585 423 383 324 June 2022 LTM vs. 261 FY 2020/21 180 40,7% 145 33,4% 106 6
Slide 33: Continued strong performance in E-Commerce
CONTINUED STRONG PERFORMANCE IN E-COMMERCE WELL POSITIONED FOR ONGOING STRUCTURAL SHIFT GROUP Q3 2021/22 (VS. PY) +5.3% -0.1%pts +2.1% E-Com net sales Conversion rate Average basket (incl. VAT) +3.1%pts +1.7%pts E-Com sales share Mobile sales share App sales share** +55% vs. pre-COVID New customers
Slide 34: Net sales development by segment: Brick & Mortar
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR Q3 2021/22 Brick & Mortar, in m€ DACHNL FRANCE +98.9% 236 131 GROUP 119 93 +41.1% 554 + 107.5% lfl + 52.2% lfl +47.5% Q3 2020/21 Q3 2021/22 Q3 2020/21 Q3 2021/22 376 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 107 98 -8.5% +56.1% + 66.5% lfl 90 57 + 27.7% l
Slide 35: Strong adjusted EBITDA and margin development
STRONG ADJUSTED EBITDA AND MARGIN DEVELOPMENT In m€ GROUP TOTAL Higher sales, combined with ongoing cost discipline in 75 personnel and operating expenses, drove adjusted EBITDA 64 and margin increase 55 35 Store Optimization Program: fully on track with lower rental 63,6 24 and personnel expenses;
Slide 36: Adjusted EBITDA development by segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q3 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 50 20 18 +12.7% 26 +90.4% GROUP 11.3% 13.4% 12.4% 64 8.6% Q3 2020/21 Q3 2021/22 Q3 2020/21 Q3 2021/22 +166.0% SOUTHERN EUROPE CENTRAL EASTERN EUROPE 7.7% 24 9 18 3.7% 7.4% 11 +60.7% Adjusted EBITDA n/m Margin -3.
Slide 37: P&L overview
P&L OVERVIEW Q3 2021/22 In m€ Q3 2020/21 Q3 2021/22 ∆% Reported EBITDA: Improved substantially and turned Net sales 643.9 850.1 32.0% positive again in particular due to higher net sales, Margin improved adj. Net sales 1 643.9 829.7 28.8% significantly which is attributable to better COGS ratio as w
Slide 38: Net working capital and capex
NET WORKING CAPITAL AND CAPEX ONGOING IMPROVEMENTS AND INVESTMENT DISCIPLINE In m€ NET WORKING CAPITAL CAPEX 21 248 19 188 Q3 2020/21 Q3 2021/22 30.06.21 30.06.22 › Strong limit control and use of replenishment software › Ongoing cautious spending policy against the background of RELEX in DE, AT & C
Slide 39: Free cash flow
FREE CASH FLOW IMPACTED BY WORKING CAPITAL AND M&A In m€ ADJUSTED FCF DEVELOPMENT 78 75 FREE CASH FLOW BRIDGE Q3 2021/22 2 Q3 2019/20 Q3 2020/21 Q3 2021/22 -14 75 64 5 41 -21 55 -21 -24 30 1 2 3 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF (POST M&A) Adjustments4
Slide 40: Liquidity headroom and leverage
LIQUIDITY HEADROOM AND LEVERAGE ONGOING COST AND CASH DISCIPLINE CASH BALANCE TOTAL NET LEVERAGE1 Net liquidity above prior In m€ year level 10,0 Positive Net Cashflow within the 16.7% 430 last 12 months mainly as a 7,0 7,2 6,7 result of our strong performance and to a lower 369 amount from positive
Slide 41: Evolution of capital structure
EVOLUTION OF CAPITAL STRUCTURE CASH AND DEBT1 STRUCTURE AS OF 30 JUNE 2022 Senior PIK Notes: m€ x Adj. x Mgmt. Adj. Maturity Pricing In m€ EBITDA3 EBITDA4 › Type of interest payments is generally at Cash and Equivalents 271 Douglas’ discretion › Douglas intends to RCF (€170m Volume)² 0 Jan 26 E+4.75
Slide 42: Summary Q3
SUMMARY Q3 DOUGLAS continued on growth path as B&M business further recovered post lockdowns E-Commerce maintained high sales level and was more than twice as high compared to pre-COVID Adjusted EBITDA more than doubled to reach €64m Higher sales and strict cost management led to improved adjusted E
Slide 43: Appendix
Slide 44: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS In Q3 2021/22 primarily related to OWAC and strategic projects (in m €) Q3 2020/21 Q3 2021/22 9M 2020/21 9M 2021/22 PPA: Former acquisitions Reported EBITDA -22.7 43.1 -39.3 211.5 COVID-19: Consulting fees 3.2 8.9 27.0 19.3 mainly state subsi
Slide 45: Selected segmental KPIs
SELECTED SEGMENTAL KPIS Q3 2021/22 In m€ REPORTED EBITDA CAPEX Q3 2020/21 Q3 2021/22 Q3 2020/21 Q3 2021/22 DACHNL 2.1 46.7 DACHNL 5.2 3.4 France 14.3 25.9 France 2.1 3.2 Southern Europe -7.9 -6.5 Southern Europe 1.0 2.2 Central Eastern Europe 9.7 17.5 Central Eastern Europe 1.6 3.4 Consolidation 0.0
Slide 46: Deep dive into LFL net sales development
DEEP DIVE INTO LFL NET SALES DEVELOPMENT QUARTERLY OVERVIEW LIKE FOR LIKE NET SALES DEVELOPMENT Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 DACHNL -3.5% 2.6% 11.7% 43.9% 39.5% France 28.7% 10.6% 14.7% 29.4% 27.7% Southern Europe 35.4% 8.1% 24.7% 32.3% 24.9% Central Eastern Europe 32.9% 16
Slide 47: Net sales development by segment 9M
NET SALES DEVELOPMENT BY SEGMENT GROUP 9M 2021/22 Total, in m€ DACHNL FRANCE 1.402 GROUP 1.113 +26.0% 542 629 2.840 +16.1% + 26.9% lfl 2.367 +20.0% + 21.1% lfl 9M 2020/21 9M 2021/22 9M 2020/21 9M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 434 449 + 27.1% lfl +3.3% 362 260 +39.7% + 26.8% lfl 9M 2
Slide 48: Net sales development by segment: E-Commerce 9M
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE 9M 2021/22 E-Commerce, in m€ DACHNL FRANCE 678 664 -2.0% 156 137 -12.2% GROUP -5.2% lfl 974 952 -2.3% 9M 2020/21 9M 2021/22 9M 2020/21 9M 2021/22 -4,5% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE 66 70 75 81 + 97.9% +6.9% +7.5% lfl vs. Pre- COVID 9M 2020/21
Slide 49: Net sales development by segment: Brick & Mortar 9M
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR 9M 2021/22 Brick & Mortar, in m€ DACHNL FRANCE + 36.7% lfl 738 435 +69.7% 492 GROUP 386 +27.5% 1.890 + 82.6% lfl +37.6% 9M 2020/21 9M 2021/22 9M 2020/21 9M 2021/22 1.374 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 369 378 + 55.5% lfl +2.7% + 54.1% lfl 282 1
Slide 50: Adjusted EBITDA development by segment 9M
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT 9M 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 165 133 +24.0% 107 GROUP 88 +22.2% 280 12.0% 11.8% 16.2% 17.1% +44.5% 194 9M 2020/21 9M 2021/22 9M 2020/21 9M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 1.2% 7.9% 65 Adjusted 42 +53.0% EBITDA Margin 35 8.2% 9
Slide 51: Selected segmental KPIs 9M
SELECTED SEGMENTAL KPIS 9M 2021/22 In m€ REPORTED EBITDA CAPEX 9M 2020/21 9M 2021/22 9M 2020/21 9M 2021/22 DACHNL 31.1 148.4 DACHNL 29.5 8.6 France 61.7 116.8 France 5.8 7.9 Southern Europe -38.8 -6.1 Southern Europe 3.3 5.2 Central Eastern Europe 34.4 63.9 Central Eastern Europe 6.2 5.8 Consolidati
Slide 52: Overview segmental structure
OVERVIEW SEGMENTAL STRUCTURE BRICK & MORTAR, NEW STRUCTURE SINCE Q1 2021/22 DACHNL FRANCE Austria France Germany Monaco Switzerland The Netherlands CENTRAL EASTERN EUROPE Bulgaria SOUTHERN EUROPE Croatia Andorra Czech Republic Italy Estonia Portugal Hungary Spain Latvia Lithuania Poland Romania Slov
Slide 53: P&L overview 9M
P&L OVERVIEW 9M 2021/22 Reported EBITDA: In m€ 9M 2020/21 9M 2021/22 ∆% Increased significantly over prior year in particular due to higher net sales, Net sales 2,367.3 2,865.2 21.0% improved COGS ratio leading to higher gross profit margin and general cost adj. Net sales 1 2,367.3 2,840.2 20.0% dis
Slide 54: Free cash flow 9M
FREE CASH FLOW 9M 2021/22 In m€ ADJUSTED FCF DEVELOPMENT 232 FREE CASH FLOW BRIDGE 9M 2021/22 186 186 280 9M 2019/20 9M 2020/21 9M 2021/22 -57 10 -38 186 -9 -68 118 -24 94 Adj EBITDA CAPEX 1 Working Capital ² TAX Others ³ Adj FCF EBITDA Free Cash Flow M&A FCF POST M&A Adjustments (pre M&A) (Cash eff
Slide 55: Cash flow statement
CASH FLOW STATEMENT 9M 2021/22 Cash flow from operating activities CASH FLOW STATEMENT Increased due to EBITDA increase and higher sales in brick & mortar 9M 2020/21 9M 2021/22 Cash flow from investing activities Outflow increased due to Net cash flow from operating activities 16.8 170.4 payment of
Slide 56: Net working capital
NET WORKING CAPITAL NET WORKING CAPITAL Net Working Capital Continues to be a key focus; In m€ 248 efficient management 221 supported by AI-based 184 188 replenishment software RELEX NWC as % of LTM net sales 76 Inventory Lower inventory due tighter 8.0% 5.9% 2.3% 6.5% 5.2% inventory management and
Slide 57: Premium store network footprint
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings* Decrease in number of stores driven by SOP Portfolio realignment across Europe will result in further reduction in number of stores 2.171 1.910 30 Jun 2021 (m€) – 137 30 Jun 2022 133 Store openings 14 2.034 1.777
Slide 58: Notice to recipients
NOTICE TO RECIPIENTS This presentation and any materials distributed in connection herewith (together, The information in this Presentation does not constitute investment, legal, expressly disclaims any such obligation, to update, revise or amend any forward- the “Presentation”) have been prepared b
Slide 59: Contact
Contact: Douglas Investor Relations Tel.: +49 211 16847 8594 E-Mail: ir@douglas.de