Douglas Ag · XETR:DOU
Douglas — Investor Presentation (December 2022)
58 slides from Douglas's investor presentation, December 2022
Slide 1: Investor Presentation December 2022
Investor Presentation LOUGLAS December 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 percentage is almost twice as high among 29% the young key customer group 19% 17% 12% DE IT FR ES PL NL T
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 strategy execution update
#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 1 207 partners as of 30 Sep 2022 in Germany, Austria, France, Poland, Italy 2 As of Sep
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 Q4 2021/22
CATEGORY TRENDS Q4 2021/22 3 FRAGRANCE AND MAKE-UP CONTINUE STRONG UPWARD TREND FRAGRANCE SKINCARE Strong growth (+23%), Positive growth (+10% fueled by exclusive, LTM); THE ORDINARY international launches; continues to overperform GISADA continuing to (+27%), has been ranking show very strong posit
Slide 14: Our integrated digital supply chain
OUR INTEGRATED DIGITAL SUPPLY CHAIN 4 › Artificial Intelligence based software with Machine Learning Digitization of … leads to … Algorithms from RELEX Solutions, replacing legacy supply chain 1 Initial Order Management › better inventory allocation online and offline systems › Comprehensive impleme
Slide 15: Supply chain and warehouse management
SUPPLY CHAIN AND WAREHOUSE MANAGEMENT 4 ADVANCED LOGISTICS TO MINIMISE SUPPLY CHAIN IMPACT Supply chain remained disrupted Omnichannel logistics centre in Germany put into operation although situation improved ▪ New distribution centre for DACH ▪ Main reason is the only recently ▪ Processing of onli
Slide 16: Douglas DataHub key enabler for 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 207 316k 175 207k Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 NUMBER OF PARTNERS NUMBER OF PARTNER ALL COUNTRIES* SKUS 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: SOP implementation completed
SOP IMPLEMENTATION COMPLETED STATUS 30/09/2022 STORE CLOSURES / LEASE FTE REDUCTIONS1 RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES1 (# OF STORES) Contracts terminated Store 60% re-negotiation 67% Stores closed 95% in closure stores completed (#) Reduced in 38% Lease terminated/ kee
Slide 21: First Sustainability Report 2021 published in June
FIRST SUSTAINABILITY REPORT 2021 PUBLISHED IN JUNE 21
Slide 22: 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 23: 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 24: 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 25: 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 26: Closer Look: Q3 2021/22 Financials
CLOSER LOOK Q3 2021/22 FINANCIALS
Slide 27: Net sales development Q4 2021/22
NET SALES DEVELOPMENT Q4 2021/22 In m€ GROUP TOTAL GROUP STORE BUSINESS GROUP E-COMMERCE 810 752 +7.6% 540 557 +3.0% + 10.2% lfl 247 212 +16.7% + 10.9% lfl + 8.4% lfl Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 › Strong performance despite numerous burdening › Store sales furth
Slide 28: Net sales development by segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q4 2021/22 DACHNL FRANCE Total, in m€ 423 370 158 152 +14.3% -3.3% GROUP 810 752 +7.6% + 11.6% lfl + 3.3% lfl Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 126 118 99 112 -6.5% +13.2% + 10.2% lfl + 12.0% lfl + 13.2% lfl Q4 2
Slide 29: Net sales development by segment: store business
NET SALES DEVELOPMENT BY SEGMENT STORE BUSINESS Q4 2021/22 Store business, in m€ DACHNL FRANCE GROUP 217 242 +11.4% 131 124 -5.5% 540 557 +3.0% + 15.6% lfl + 2.3% lfl Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 112 102 + 10.5% lfl -9.1% + 10.9% lfl 80 89 +11.1%
Slide 30: Net sales development by segment: e-commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q4 2021/22 E-Commerce, in m€ DACHNL FRANCE 180 153 +17.9% + 7.5% lfl GROUP + 6.3% lfl 27 29 +7.5% 247 212 +16.7% Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 + 8.4% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE + 14.0% lfl 18 23 14 16 +22.8% +14.0% + 22.8% lfl
Slide 31: Strong adjusted EBITDA and margin development
STRONG ADJUSTED EBITDA AND MARGIN DEVELOPMENT In m€ GROUP TOTAL 46 Higher sales in Stores and E-Com, combined with moderate cost growth drove adjusted EBITDA and margin increase despite higher marketing expenses 66.0% Store Optimization Program concluded with lower rental cost 28 ratio and lower per
Slide 32: Adjusted EBITDA development by segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q4 2021/22 DACHNL Adjusted EBITDA1, in m€ FRANCE 44 20 GROUP 28 +60.4% 14 -32.4% 46 7.5% 10.5% 12.8% 9.0% Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 +66.0% 28 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 5 17 Adjusted 3.7% 5.7% EBITDA +147.6% 10 +68.8% Margin 2 1.5%
Slide 33: P&L overview
P&L OVERVIEW Q4 2021/22 ³ In m€ Q4 2020/21 Q4 2021/22 ∆% Reported EBITDA: Higher marketing expenses, goods Net sales 752.3 812.2 8.0% handling costs and other services costs offset increased gross profit; in PY adj. Net sales 1 752.3 809.7 7.6% reclassification of costs in conjunction with the refin
Slide 34: Net working capital and capex
NET WORKING CAPITAL AND CAPEX ONGOING IMPROVEMENTS AND INVESTMENT DISCIPLINE In m€ NET WORKING CAPITAL CAPEX 41 180 31 115 Q4 2020/21 Q4 2021/22 30.09.21 30.09.22 › Supply chain disruptions partially balanced by early orders, › Ongoing cautious spending policy against the background of efficiently m
Slide 35: Free cash flow
FREE CASH FLOW 12M 2021/22 In m€ ADJUSTED FCF DEVELOPMENT FREE CASH FLOW BRIDGE 12M 2021/22 232 197 167 325 12M 2019/2020 12M 2020/21 12M 2021/22 -86 -52 54 -74 167 -72 94 -24 70 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) (C
Slide 36: Liquidity headroom and leverage
LIQUIDITY HEADROOM AND LEVERAGE ONGOING CASH AND COST FOCUS CASH BALANCE TOTAL NET LEVERAGE1 In m€ Net liquidity at prior year level 9.8 Positive net cashflow in FY 399 0.3% 400 8.1 2021/22 mainly as a result of 6.9 6.7 increased EBITDA, cautious spending policy and efficient working capital managem
Slide 37: Full year IFRS 16 effects
FULL YEAR IFRS 16 EFFECTS in Mio € pre IFRS 16 post IFRS 16 Delta - pro forma - Other expenses Net sales 3,677.5 3,677.5 0.0 Other expenses decreased by €270.5m as lease Gross profit 1,619.1 1,619.1 0.0 expenses which are to be capitalised following IFRS Other income 282.1 288.6 6.5 16 were reclassi
Slide 38: Summary Q4
SUMMARY Q4 DOUGLAS concluded another successful quarter as Store business continued to grow and lfl exceeded pre-COVID level E-Commerce increased high sales level and was 97% higher compared to pre-COVID level, sales share at 30.5% Adjusted EBITDA grew to €46m due to higher sales, improved gross pro
Slide 39: Appendix
Slide 40: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS Primarily related to OWAC and strategic projects Restructuring costs: (in m €) Q4 2020/21 Q4 2021/22 12M 2020/21 12M 2021/22 Mainly for comprehensive restructuring in Spain Reported EBITDA 57.4 41.5 14.7 253.0 PPA: Former acquisitions Consult
Slide 41: Selected segmental KPIs
SELECTED SEGMENTAL KPIS Q4 2021/22 In m€ REPORTED EBITDA CAPEX Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 DACHNL 20.3 34.0 DACHNL 7.1 12.7 France 14.0 18.7 France 4.7 7.7 Southern Europe 5.6 7.9 Southern Europe 3.8 5.5 Central Eastern Europe 8.6 17.1 Central Eastern Europe 3.7 9.5 Consolidation -0.
Slide 42: Deep dive into lfl net sales development
DEEP DIVE INTO LFL NET SALES DEVELOPMENT QUARTERLY OVERVIEW LIKE FOR LIKE NET SALES DEVELOPMENT Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 DACHNL 2.6% 11.7% 43.9% 39.5% 11.6% France 10.6% 14.7% 29.4% 27.7% 3.3% Southern Europe 8.1% 24.7% 32.3% 24.9% 12.0% Central Eastern Europe 16.2% 36.
Slide 43: Free cash flow
FREE CASH FLOW IMPACTED BY ADJ. EBITDA, WORKING CAPITAL AND OTHERS In m€ ADJUSTED FCF DEVELOPMENT 11 FREE CASH FLOW BRIDGE Q4 2021/22 1 -19 Q4 2019/20 Q4 2020/21 Q4 2021/22 46 -14 43 -29 -65 -4 0 1 2 3 -19 -24 -24 4 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF (P
Slide 44: Net sales development by segment
NET SALES DEVELOPMENT BY SEGMENT GROUP 12M 2021/22 Total, in m€ DACHNL FRANCE 1,826 1,499 +21.8% GROUP 699 781 3,650 +11.7% + 21.7% lfl 3,120 +17.0% + 17.5% lfl 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 560 566 + 21.8% lfl +1.1% 464 361 +28.5% + 22.8% lfl
Slide 45: Net sales development by segment: store business
NET SALES DEVELOPMENT BY SEGMENT STORE BUSINESS 12M 2021/22 Store business, in m€ DACHNL FRANCE 981 + 28.3% lfl 651 +50.7% GROUP 616 517 +19.2% 2,440 + 60.3% lfl 1,915 +27.4% 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE + 37.4% lfl 481 480 -0.1% + 40.9% lfl
Slide 46: Net sales development by segment: e-commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE 12M 2021/22 DACHNL E-Commerce, in m€ FRANCE 848 844 -0.5% 183 165 -9.4% GROUP -5.2% lfl -9.4% lfl 1,204 1,196 -0.7% 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 + -4.0% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE 80 86 94 101 +8.1% +7.2% + 8.1% lfl + 7.2
Slide 47: Adjusted EBITDA development by segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT 12M 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 210 GROUP 121 161 +30.5% 108 +12.0% 325 10.7% 11.5% 15.5% 15.5% +49.4% 218 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 1.2% 7.1% 79 Adjusted EBITDA 40 49 +60.5% Margin
Slide 48: Full year IFRS 16 effects (II)
FULL YEAR IFRS 16 EFFECTS (II) Adjusted EBITDA1, in m€ DACHNL FRANCE 339 169 GROUP 121 210 602 11.5% 18.6% 15.5% 21.6% 12M 2021/22 12M 2021/22 12M 2021/22 12M 2021/22 pre IFRS 16 post IFRS 16 pre IFRS 16 post IFRS 16 325 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 109 115 79 40 8.9% 17.5% 7.1% 19.2% 17.1
Slide 49: Selected segmental KPIs
SELECTED SEGMENTAL KPIS 12M 2021/22 In m€ REPORTED EBITDA CAPEX 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 DACHNL 51.4 182.6 DACHNL 17.0 21.3 France 75.7 135.5 France 10.5 15.6 Southern Europe -33.1 1.9 Southern Europe 7.1 10.7 Central Eastern Europe 40.1 78.9 Central Eastern Europe 9.9 15.3 Co
Slide 50: Overview segmental structure
OVERVIEW SEGMENTAL STRUCTURE STORE BUSINESS, 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 51: P&L overview
P&L OVERVIEW 12M 2021/22 Reported EBITDA: Increased significantly over prior year In m€ 12M 2020/21 12M 2021/22 ∆% due to higher net sales, improved COGS ratio leading to higher gross Net sales 3,119.6 3,677.5 17.9% profit margin, better personnel expenses ratio and rent cost ratio, adj. Net sales 1
Slide 52: Cash flow statement
CASH FLOW STATEMENT 12M 2021/22 Cash flow from operating activities CASH FLOW STATEMENT Increased due to EBITDA increase and net working capital management 12M 2020/21 12M 2021/22 Cash flow from investing activities Outflow increased due to Net cash flow from operating activities 75.7 171.8 payment
Slide 53: Full year IFRS 16 effects (III)
FULL YEAR IFRS 16 EFFECTS (III) CASH FLOW FROM FREE CASH FLOW LEVERAGE* OPERATING ACTIVITIES 400 7 6.9 500 468 367 350 6 5.6 400 300 5 250 300 4 200 3 200 172 150 2 100 70 100 1 50 0 0 0 pre IFRS 16 post IFRS 16 pre IFRS 16 post IFRS 16 pre IFRS 16 post IFRS 16 53 *Leverage post IFRS 16 including IF
Slide 54: Net working capital
NET WORKING CAPITAL Net Working Capital NET WORKING CAPITAL Continues to be a key focus; efficient management In m€ supported by AI-based 217 180 184 replenishment software RELEX Inventory NWC as % of 115 LTM net sales 71 Higher inventory due to early ordering for important Christmas quarter in the
Slide 55: Evolution of capital structure
EVOLUTION OF CAPITAL STRUCTURE CASH AND DEBT1 STRUCTURE AS OF 30 SEPT 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 245 Douglas’ discretion › Douglas intends to RCF (€170m Volume)² 0 Jan 26 E+4.75
Slide 56: Premium store network footprint across Europe
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings* Decrease in number of stores driven by Store Optimisation Programme 2,078 1,837 30 Sep 2021 136 (m€) – 133 30 Sep 2022 Store openings 14 1,942 1,704 Store closures -255 Total -241 Sep 21 Sep 22 Own stores Franchis
Slide 57: 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 58: Contact
Contact: Douglas Investor Relations Tel.: +49 211 16847 8594 E-Mail: ir@douglas.de