Slide 1: Answear.com Investor Presentation Q1 2025
ANSWEAR.COM INVESTOR PRESENTATION Q1 2025 M ay 20 2 5
Slide 2: We have returned to the trajectory of revenue growth and improving profitability
WE HAVE RETURNED TO THE TRAJECTORY OF REVENUE GROWTH AND IMPROVING PROFITABILITY
Slide 3: Leader's Vision: Summary Q1 2025
TH E FASTES T-G ROWIN G FASHI ON E -COMME RCE LEADER’S VISION PLATFO RM I N EUROPE SUMMARY Q1 2025 We have significantly improved our profitability. Q1 2025 results confirm the durability of the positive trend – EBITDA tripled year- over-year, supported by a seasonally strong margin. The conclusion
Slide 4: Consistent building of the premium fashion e-commerce market leader in the CEE
CONSISTENT BUILDING OF THE PREMIUM FASHION E- LEADER’S VISION COMMERCE MARKET LEADER IN THE CEE ESTABLISHING THE BEGINNING OF IPO ON THE WSE ACQUISITION OF OPENING OF TWO ANSWEAR INTERNATIONAL EXPANSION 2020 PRM CONCEPT STORES 2011 2014 2023 2024 1400 Italy 1200 1000 Slovinia 80 0 Croatia 60 0 Greec
Slide 5: Building a unique premium fashion group in the CEE region
BUI LDIN G A U NI QU E PRE MIU M FASH IO N G ROU P IN LEADER’S VISION TH E CEE RE GI ON Offer Structure Target Group Selected Brands • Men (60%) and women (40%), ~20 k 19 % customers not necessarily defined by age (with a predominance of Gen Y SKUs and Gen Z) but by lifestyle and 260 76 % interests
Slide 6: Unique positioning – distant from major competitors
U NI QU E PO SIT IO NI NG – DISTANT FROM MAJOR LEADER’S VISION COMPE TITO RS Exclusive Offer P R O D U C T S TR A T E G Y Comprehensive Offer Budget Brands Mid-Range Brands Premium Brands P R ICI NG STR AT E G Y 06
Slide 7: Consistent premiumization of the offering
CONSISTENT PREMIUMIZATION OF THE OFFERING
Slide 8: We are effectively increasing revenue, gross margin, optimizing costs and improving profitability
WE ARE EFFECTIVELY INCREASING REVENUE, GROSS MARGIN, OPTIMIZING COSTS AND IMPROVING PROFITABILITY
Slide 9: Marketing activities
O BECN IE RACJ ONALI ZU JEMY WYDATKI MARK ETIN GOWE MARKETING ACTIVITIES MARKETING COSTS (mln PLN) Following a period of intensive investment in marketing activities, the marketing-to-online-sales ratio (before returns) decreased from 12.0% to 11.7% in Q1 2025—despite the 96.19 launch of additional
Slide 10: Highest quality in marketing communications
D ZI A Ł A N IA MA R KE T IN G OW E WITH THE GOAL OF BUILDING A "LOVE BRAND," WE ENSURE THE HIGHEST QUALITY IN MARKETING COMMUNICATIONS 10
Slide 11: Premiumization leads to the reduction in operating costs
PREMIU MIZATI ON LE ADS TO THE COST OPTIMIZATION REDUCTIO N IN OPERATIN G COSTS LOGISTICS COSTS RATIO Logistics costs primarily include expenses related to the logistics department, warehouse management, and transportation of parcels to customers, including potential returns. 14.0% The premiumizatio
Slide 12: Value pyramids for premium & luxury brands
VALU E PYRAMIDS F OR PREM IU M & LUXURY BRAN DS OFFER PREMIUMIZATION Brands appreciate our premium quality, which grants us access to higher segments (e.g., Adidas Originals, New Balance) as well as limited-edition collections (e.g., Karl Lagerfeld Studio). • Status of belonging to a select group, b
Slide 13: Enabling us to more effectively reach a new customer segment
… E NABL IN G US TO MO RE EFF ECTI VELY REACH A N EW CUS TO MER SEGMEN T OFFER PREMIUMIZATION The average order value generated by new customers is significantly CHANGE IN AOV (PLN) YEAR-OVER-YEAR – NEW VS. EXISTING CUSTOMERS higher than that of existing customers, indicating effective 39.7 penetrat
Slide 14: Long-term process of acquiring premium brands
LON G-TERM PROCESS OF OFFER PREMIUMIZATION ACQU IRI NG PREMI UM BRAN DS .. . The process of acquiring brands in the premium segment is challenging and time-consuming. Brands are distributed selectively; not everyone can become a distributor—only selected entities that meet specific criteria and esta
Slide 15: Case study: selected bestsellers
O F F E R P R E M I U M I Z AT I O N CAS E STU DY: SELECTED BESTSEL LERS Footwear Handbag Sports Footwear Units Sold: 2,4 k. Units Sold : 1 k. Units Sold : 2,4 k. Revenue: 1,4 mln PLN Revenue: 1,2 mln PLN Revenue: 0,9 mln PLN Product Margin: 51,6% Product Margin: 37,3% Product Margin: 38,9% Weeks in
Slide 16: Investment in concept store is a major differentiator for our brands
INVESTMENT IN CONCEPT STORE IS A MAJOR DIFFERENTIATOR FOR OUR BRANDS AND ATTRACTS NEW, UNIQUE BRANDS
Slide 17: A unique marketing and brand image dimension
A U NI QU E MARK ETIN G AND BRAND IMAG E DI MEN SIO N C ON C EP T STO RE The concept store also serves as a meeting point for both customers and individuals from the worlds of fashion and culture. E vents organized in collaboration with partner brands offer a unique opportunity to explore their offe
Slide 18: Brands acquired through the concept store; exclusive events
C ON C EP T STO RE BRANDS ACQUIRED THROUGH W E OR GA NIZ E THE CONCEPT STORE E XC LU S IV E E VE N T S Premiere Sisterhood Stories Valentine's Day Business Brunch with Business Mentors Private shopping - Apres Ski Live shopping with MMC Studio Design Press Breakfast Premier of the spring collection
Slide 19: We continuously increase the scale and profitability of our business
WE CONTINUOUSLY INCREASE THE SCALE AND PROFITABILITY OF OUR BUSINESS
Slide 20: We continuously increase the number of visitors to our sites
WE CO NT INU O USLY I NCREASE TH E NU MBER O F S C A L I N G T H E B U S I NE S S VISI TORS TO OU R SI TES NUMBER OF VISITS (MLN) NUMBER OF ORDERS (TYS) NUMBER OF VISITS IN THE “MOBILE” CHANNEL (TYS) +21% +14% +26% 329 5831 288 5112 273 228 +9% +18% +13% 76 82 1381 73 1168 65 2023 2024 Q1 2024 Q1 20
Slide 21: Over PLN 1.5 billion in sales revenue
OVER PLN 1.5 BILLION IN SALES REVENUE S C A L I N G T H E B U S I NE S S WE CONTINUE TO GROW CONSISTENTLY DESPITE THE CHALLENGING MARKET ENVIRONMENT SALES REVENUE (MLN PLN) Return to the Previous PRM REVENUE (MLN PLN) Growth Trajectory Revenue increased by 22.2% YoY—surpassing the full-year growth o
Slide 22: We are constantly improving our sales month by month
WE ARE CONSTANTLY IMPROVING OUR SALES S C A L I N G T H E B U S I NE S S MONTH BY MONTH Winter sale months were well-leveraged, delivering positive year-over-year growth in January and February, despite strong sales at the end of Q4 2024. 204.0 200.0 The successful reception of the SS25 collection c
Slide 23: Wide geographic presence limits our exposure to individual market risks
S C ALI N G TH E B US I N ES S WIDE GEOGRAPHIC PRESENCE LIMITS OUR EXPOSURE TO INDIVIDUAL MARKET RISKS COUNTRIES OUTSIDE OF THE EU (MLN PLN) Strong growth momentum in the POLAND (MLN PLN) EU COUNTRIES EXCLUDING POLAND(mln PLN) Polish market, driven by the opening of Answear and PRM +41% +15% +12% br
Slide 24: The appreciation of the Polish zloty negatively affected sales and profitability
IN V E ST ME N T O U T CO ME S THE APPRECIATION OF THE POLISH ZLOTY NEGATIVELY AFFECTED BOTH SALES AND PROFITABILITY Exchange rate EUR/PLN from 1.01.2023 to 31.03.2025 Exchange rate UAH/PLN from 1.01.2023 to 31.03.2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 The strengthening of the Polish zloty against the
Slide 25: We stand out positively against the competition
WE STAND OUT POSITIVELY AGAINST THE COMPETITION S C A L I N G T H E B U S I NE S S AOV (PLN) REVENUE GROWTH IN Q1 2025 (PLN) 907 600 * 22% 558 565 480 374 364 * 291 262 * 218 7.9% 130 * 4% 4.0% 104 2% Answear Zalando Grupa CCC* Mytheresa Boozt Grupa Asos Modivo* -6% * Gross AOV Value * preliminary e
Slide 26: We are seeing the results of our investments
WE ARE SEEING THE RESULTS OF OUR INVESTMENTS
Slide 27: A well-thought-out investment in strategic business transformation
IN V E STME N T O U TCO ME S A WELL-THOUGHT-OUT INVESTMENT IN STRATEGIC BUSINESS TRANSFORMATION… 19,2 mln PLN Investment in Answear and PRM concept store 308 mln PLN 30,7 mln PLN 7,2 mln PLN 1,9 mln PLN Platform development Warehouse equipment Marketing costs in 2024 Main capital expenditures in 202
Slide 28: Ambitious incentive program
LEAD ER ’S VIS IO N AMBITIO U S I NCEN TIVE P ROG RAM We Always Look Ahead Goals for the Coming Years Performance Target: EBITDA (PLN million) Market Target: Share Price (PLN) 120 60 100 50 80 40 7 62 0 % 56 33 26 23 34 30% 2022 2023 2024 2025 2026 2027 2022 2023 2024 2025 2026 2027 28
Slide 29: Strategy ensuring continued growth alongside improved profitability
STRATEGY ENSURING CONTINUED GROWTH ALONGSIDE IMPROVED PROFITABILITY
Slide 30: The key pillars of our business growth
S T R AT E G Y THE KEY PILLARS OF OUR BUSINESS GROWTH EFFECTIVENESS OF ATTRACTIVE BRANDS MARKETING IN THE PORTFOLIO ACTIVITIES THESE PILLARS ENABLE THE EXECUTION OF OUR STRATEGIC GROWTH OBJECTIVES Building a Love Further expanding the Optimization of We are postponing Optimisation of the Brand, incr
Slide 31: Why Answear?
ATTRACTIVENESS OF ANSWEAR S T R AT E G Y WHY ANSWEAR? WE ARE BACK ON A STRONG WE HAVE A CLEAR STRATEGY AND GROWTH TRAJECTORY AMBITION We want to be number 1 in premium and high-end We are currently the fastest-growing fashion e- fashion in Central Europe – we act consistently commerce platform in Eu
Slide 32: Thank you for your attention
THANK YOU FOR YOUR ATTENTION FEEL FREE TO CONTACT US: investor.relations@answear.com p.strzyzewski@innervalue.pl