Desenio Group Ab · OMXSTO:DSNO
Desenio Group Ab — Q2 2021 Earnings Presentation
17 slides from Desenio Group Ab's earnings presentation, 2021
Slide 1: Results Presentation 2021 Q2
RESULTS PRESENTATION 2021 Q2 Unexpected lock-up effect, but persistent long-term targets and well-positioned in an attractive market
Slide 2: Key Headlines
KEY HEADLINES • LOCK-UPS ACCELERATING NORMAL NEGATIVE SEASONAL EFFECT • Q3 TREND TOWARDS MORE NORMAL SEASONALITY • PERSISTENT TARGETS AND WELL-POSITIONED FOR THE “NEW NORMAL” 2
Slide 3: Desenio Group in Brief
DESENIO GROUP IN BRIEF 1 DISRUPTIVE APPROACH TO A LARGE GLOBAL DESIGN CATEGORY 2 INNOVATIVE INDUSTRIAL CREATIVITY AT SCALE 3 TECH-BASED, DATA-DRIVEN AND DYNAMIC GROWTH MACHINE 4 SIGNIFICANT POTENTIAL IN CURRENTLY UNADDRESSED MARKETS 5 BEST-IN-CLASS PROFITABILITY AND CASH GENERATION 3
Slide 4: Key Highlights
KEY HIGHLIGHTS • SALES UP 5% (-28% ORGANIC GROWTH) • ACTIVE CUSTOMERS UP 79% • GROSS MARGIN AT 81.1% (84.6%) GROSS MARGIN 82.5% ADJUSTED FOR POSTER STORE • ADJUSTED EBITA MARGIN 11.7% (33.7%) 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS NET SALES (SEK million) GROSS MARGIN ADJUSTED EBITA (SEK million) 85 131% 84.6% 266 33.7% 81.1% 253 31 11.7% 5% 2020Q2 2021Q2 2020Q2 2021Q2 2020Q2 2021Q2 Y-o-Y growth EBITA margin 5
Slide 6: Customer Highlights
CUSTOMER HIGHLIGHTS ACTIVE CUSTOMERS (thousands) 3,541 VISITS (thousands) ORDERS (thousands) 126% 103% 526 21,770 22,506 465 1,977 79% 41% 13% 3% 2020Q2 2021Q2 2020Q2 2021Q2 2020Q2 2021Q2 Y-o-Y growth Y-o-Y growth Y-o-Y growth 6
Slide 7: Cash Flow Highlights
CASH FLOW HIGHLIGHTS CAPEX (SEK million) NET WORKING CAPITAL (SEK million) OPERATIONAL CASH FLOW (SEK million) 137 75.5 9% 4.6 2020Q2 2021Q2 2020Q2 2021Q2 -12% 0.7 -81 -68.8 2020Q2 2021Q2 NWC/Net Sales LTM 7
Slide 8: Analysis from Q2 and Trading Update
ANALYSIS FROM Q2 AND TRADING UPDATE • UNEXPECTED LOCKUP EFFECT CAUSED MAJOR DIP IN DEMAND FROM END OF MAY – MORE POSITIVE FROM JULY • CONVERSION RATES INTACT – “ONLY” A TRAFFIC ISSUE • DEEP SALES DIP IN Q2 – TRENDING TOWARDS MORE NORMAL SEASONALITY 8
Slide 9: Search Index Development
SEARCH INDEX DEVELOPMENT 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 Source: Google Trends Note: These graphs are indexes of each brand’s own Google search volume to compare development. Not to be used for comparing abosolute search volumes. 9
Slide 10: Brand Search Index Development
BRAND SEARCH INDEX DEVELOPMENT 20 Q2 21 Q2 Source: Google Trends Note: These graphs are indexes of each brand’s own Google search volume to compare development. Not to be used for comparing abosolute search volumes. 10
Slide 11: Conversion rate stable, but unexpected decrease in traffic
OUR CONVERSION RATE HAS BEEN FAIRLY STABLE, VISITORS ARE STILL BUYING OUR PRODUCT – BUT WE SEE AN UNEXPECTED DECREASE IN TRAFFIC 4.00% CONVERSION RATE FOR ALL DESENIO WEBSITES 3.50% Q2 3.00% 2.50% 2.00% 1.50% 1.00% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2
Slide 12: Q1 2021 Order Intake Started Strong, But Took a Dive in Q2
Q1 2021 ORDER INTAKE STARTED STRONG, BUT TOOK A DIVE IN Q2. POSITIVE TREND IN JULY AND AUGUST 160 ORGANIC GROSS ORDER INTAKE 140 Q2 120 100 80 SEK m 60 40 20 0 January February Mars April May June July August September October November December 2018 2019 2020 2021 Source: Flow 12
Slide 13: Trading Update Q3
TRADING UPDATE Q3 Preliminary Organic Net Sales 2021 (SEK million) 23% 52 42 June July 2020 2019 2018 2017 -14% 28% 7% 8% 13
Slide 14: Strategic Highlights
STRATEGIC HIGHLIGHTS • SUCCESSFUL INTEGRATION OF POSTER STORE FINALIZED IN Q2. ANNUAL SYNERGIES OF SEK 50 MILLION EXPECTED, OF WHICH AROUND SEK 25 MILLION 2021. • STRATEGIC RECRUITMENTS; CFO AND TWO BOARD MEMBERS. • ADDITIONAL FULFILMENT CENTRE IN CZECHIA. 14
Slide 15: Strategic New Logistic Centre
STRATEGIC NEW LOGISTIC CENTRE BOR, CZECHIA ⚫ Distribution Centre (18 500 sqm) COMPARED TO CURRENT SWEDISH WAREHOUSE • 1-2 DAYS LEAD TIME REDUCTION TO KEY MARKETS • SALARY COST APPROX 30% LOWER • RENT PER SQM APPROX 30% LOWER • POSTAGE COST REDUCTION OF 5-15% FOR LARGER EUROPEAN MARKETS Markets suppl
Slide 16: Outlook
OUTLOOK • FAST-GROWING MARKET, OUTSTANDING BUSINESS MODEL WITH 5+ YEARS OF PROVEN STRENGTH • POST-COVID STRUCTURAL TRENDS SUPPORTING DESENIO GROUP’S CONTINUOUS GROWTH • 2021 TARGET: NET SALES TO GROW APPROX 15-25% WITH ADJUSTED EBITA MARGIN ~20% • MEDIUM TERM TARGET: APPROX 30% ORGANIC SALES GROWTH
Slide 17: Desenio Group
DESENIO GROUP