Desenio Group Ab · OMXSTO:DSNO
Desenio Group Ab — Q3 2021 Earnings Presentation
18 slides from Desenio Group Ab's earnings presentation, 2021
Slide 1: Results Presentation 2021 Q3
RESULTS PRESENTATION 2021 Q3
Slide 2: Key Headlines
KEY HEADLINES • STILL STRUGGELING WITH LOCK-UPS – SIMILAR SITUATION AMONG PEERS • LIMITED VISIBILITY FOR REMAINING PART OF THE YEAR AND BEGINNING OF 2022 – COMMITTED TO LAND Q4 IN LINE WITH EXPECTATIONS • THIS IS NOT THE NEW NORMAL – NOT FOR THE INDUSTRY AND NOT FOR DESENIO • MEDIUM AND LONG-TERM TA
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 • NET SALES INCREASED 14.5% (-20.9% ORGANIC GROWTH) • GROSS MARGIN AT 82.8% (84.6%) • GROSS MARGIN AT 83.4% ADJUSTED FOR POSTER STORE • ADJUSTED EBITA MARGIN 12.2% (28.3%) • ACTIVE CUSTOMERS INCREASED 74% 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS NET SALES (SEK million) GROSS MARGIN ADJUSTED EBITA (SEK million) 240 84.6% 82.8% 209 55 26.3% 29 37% 12.2% 15% 2020Q3 2021Q3 2020Q3 2021Q3 2020Q3 2021Q3 Y-o-Y growth Adj EBITA margin 5
Slide 6: Customer Highlights
CUSTOMER HIGHLIGHTS ACTIVE CUSTOMERS (thousands) VISITS (thousands) ORDERS (thousands) 3,643 21,949 499 2,094 19,297 443 74% 44% 39% 34% 14% 13% 2020Q3 2021Q3 2020Q3 2021Q3 2020Q3 2021Q3 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) 47.1* 40.7 21.5 2020Q3 2021Q3 -8% -11% 2020Q3 2021Q3 -69 1.2 2020Q3 2021Q3 -140 NWC/Net Sales LTM *SEK 45.8 million is due to capitalising leasing agreements in accordance with IFRS 16. 7
Slide 8: Analysis from Q3
ANALYSIS FROM Q3 • STILL CHALLENGING LOCK-UP EFFECTS – DIP IN DEMAND FROM MAY NOT FULLY RECOVERED • CONVERSION RATES ARE STILL INTACT – “ONLY” A TRAFFIC ISSUE • THIS IS NOT THE NEW NORMAL – DESENIO’S BUSINESS MODEL STANDS STRONG 8
Slide 9: Search Index Development
SEARCH INDEX DEVELOPMENT 120 20 120 21 120 20 21 20 21 100 Q2 Q2 Q2 Q2 100 Q2 Q2 100 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 Poster Store Juniqe Desenio 120 120 120 100 20 21 100 20 21 100 20 21 Q2 Q2 Q2 Q2 Q2 Q2 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 Wayfair Westwing Poster Source: Google Tren
Slide 10: Brand Search Index Development
BRAND SEARCH INDEX DEVELOPMENT BRAND SEARCH INDEX (COMMON INDEX) 120 100 80 60 40 20 0 jan/20 feb/20 mar/20 apr/20 maj/20 jun/20 jul/20 aug/20 sep/20 okt/20 nov/20 dec/20 jan/21 feb/21 mar/21 apr/21 maj/21 jun/21 jul/21 aug/21 sep/21 okt/21 Desenio Poster Store Juniqe Posterlounge Source: Google Tre
Slide 11: Search Index Development
SEARCH INDEX DEVELOPMENT 20 21 20 21 20 21 Q2 Q2 Q2 Q2 Q2 Q2 20 21 20 21 20 21 Q2 Q2 Q2 Q2 Q2 Q2 Source: Google Trends Note that these are all indexes of their own search volume and thus can’t be exactly compared to each other. This is purely for illustrative purposes to see that the trend patterns
Slide 12: Brand Search Index Development
BRAND SEARCH INDEX DEVELOPMENT BRAND SEARCH INDEX (COMMON INDEX) 120 100 80 60 40 20 0 jan/20 feb/20 mar/20 apr/20 maj/20 jun/20 jul/20 aug/20 sep/20 okt/20 nov/20 dec/20 jan/21 feb/21 mar/21 apr/21 maj/21 jun/21 jul/21 aug/21 sep/21 okt/21 -20 desenio poster store juniqe iamfy king and mcgaw Source
Slide 13: Decrease in Traffic, Conversion Rate Constant
DECREASE IN TRAFFIC CONVERSION RATE CONSTANT Conversion rate for all Desenio sites 4.00% Q3 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 2020 2021 Sessions for all Desenio sites 12 Millions 10 Q3 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov D
Slide 14: 2021 Revenue Desenio Group
2021 REVENUE DESENIO GROUP Desenio Group Gross Order intake (proforma) 250 Q3 200 150 100 50 0 January February Mars April May June July August September October November December 2019 2020 2021 *Data source: Flow 14
Slide 15: Strategic Highlights
STRATEGIC HIGHLIGHTS • NEW LOGISTICS CENTRE IN BOR, CZECHIA, HANDLED ITS FIRST DELIVERIES • WEIWEI YUE RECRUITED AS NEW COO • MICHAEL KURLANCHEEK RECRUITED AS NEW GENERAL MANAGER, NORTH AMERICA 15
Slide 16: Strategic New Logistic Centre
STRATEGIC NEW LOGISTIC CENTRE BOR, CZECHIA CZECH FULFILMENT CENTRE LIVE ⚫ Distribution Centre (18 500 sqm) LAST WEEK THIS WEEK WITHIN 2 WEEKS AFTER THIS WEEK AROUND 40% OF POSTER STORE TOTAL VOLUMES ARE SHIPPED FROM CZECHIA. WITHIN AN ADDITIONAL TWO WEEKS THIS Markets supplied by new European wareho
Slide 17: Outlook
OUTLOOK • € 15 BILLION MARKET, OUTSTANDING BUSINESS MODEL WITH 5+ YEARS OF PROVEN STRENGTH • OUR JOURNEY AS A PROFITABLE GROWTH COMPANY CONTINUES • GENERAL MANAGER NORTH AMERICA STARTING MID-NOVEMBER • BLACK FRIDAY AND CHRISTMAS AROUND THE CORNER – STRONGEST MONTHS OF THE YEAR FOR DESENIO • MEDIUM T
Slide 18: Desenio Group
DESENIO GROUP