Talea Group S.p.a. · MIL:TALEA
Talea — Farmaè — Non-Deal Roadshow (May 2020)
28 slides from Talea's roadshow presentation, May 8, 2020
Slide 1: Alantra Virtual Roadshow
Alantra Virtual Roadshow 8 May 2020
Slide 2: Every 30 seconds 1.3 queries for Farmaè
Every 30 seconds there is 1.3 queries for Farmaè or brand-related queries In Italy: 3,822 searches on avg. every day 115K searches on avg. every month Source: Google Internal data, Jan-March 2020
Slide 3: COVID-19 sanitary emergency and Farmaè's growth in Q1 2020
THE COVID-19 SANITARY EMERGENCY Adopted stringent measures to avoid the outbreak inside the offices and the warehouses and to train our people on how to be safe 1 Smart working for people working at the call center, marketing and administrative department Warehouse employees must maintain a safety d
Slide 4: Leader in the online pharma & personal care market
LEADER IN THE ONLINE PHARMA & PERSONAL CARE MARKET Revenues +71% from March 2019 190k Active Clients as of March 2020 1,7m Products sold as of March 2020 8.8m Site visits as of March 2020 12,6m Online Sales 4
Slide 5: A unique history of growth
A UNIQUE HISTORY OF GROWTH 2019 €37.5 m 2019 Beautyè Launch 2019 Listed on the AIM Market 2019 New Logistic Hub 2017 € 24.9 m € 13.3 m 2018 2015 First co-marketing Opening of offline initiatives stores in Tuscany € 7.6 m € 3.4 m 2016 Revenues 2014 Riccardo Iacometti set up Farmaè 5
Slide 6: A scalable and omnichannel business model
A SCALABLE AND OMNICHANNEL BUSINESS MODEL ONLINE OFFLINE 8 Offline Stores in Tuscany Personalized, user-friendly and convenient shopping experience available 24/7 1 Media platform which recognize customers needs to Beautyè store (Viareggio) realize effective marketing strategies focused on the impro
Slide 7: The reference point for customers and the industry
THE REFERENCE POINT FOR CUSTOMERS AND THE INDUSTRY Customer Care Technology Logistics Customer Industry Omnichannel Products Offer Data Economy Focus on Customers Focus on Industry Unique customer experience thanks to the Unique media platform at the service of the state-of-the-art and scalable e-co
Slide 8: The best technology to provide the best customer experience
THE BEST TECHNOLOGY TO PROVIDE THE BEST CUSTOMER EXPERIENCE Artificial Intelligence and Chatbots integrated with Facebook and Salesforce State-of-the-art personalized, user-friendly platform (both for mobile and desktop users) enabling data matching between online and offline Google Accelerated Mobi
Slide 9: An advanced logistic hub
AN ADVANCED LOGISTIC HUB 5,000 sqm new warehouse to support growth 4 couriers responsible for national and foreign deliveries 48 h estimated maximum time for a delivery € 150 m storable goods € 19.90 minimum cost for free delivery A new automated logistics hub located in Migliarino Pisano (PI) , equ
Slide 10: Governance
GOVERNANCE BOARD OF DIRECTORS BOARD OF STATUTORY AUDITORS Riccardo Iacometti Alberto Colella Chairman & CEO Chairman Albero Maglione Maurizio Paganini Monica Barbara Baldini Giovanni Bulckaen Director Director Regular Statutory Auditor Regular Statutory Auditor Dario Righetti Giuseppe Cannarozzi Mas
Slide 11: Market Positioning
Market Positioning +FARMAEGROUP
Slide 12: Favorable e-commerce market in Italy
FAVORABLE E-COMMERCE MARKET IN ITALY 2019 € 31.6 bn (+15%) E-commerce Market Value E-commerce Market in Italy €18.1 m (+21%) of purchases represented by Products 7.3% Penetration rate € 10.8 bn Personal Care & OTC Market Value Personal Care & Otc Market in Italy € 240 m Personal Care & OTC Online Ma
Slide 13: Comparison with the European market
COMPARISON WITH THE EUROPEAN MARKET Italy is less developed in terms of E-Retail if compared with other European countries: large potential for growth 1090 UK 890 Consumers’ average cost (€) Nordics 690 Germany France Holland Spain 490 Spain Italy Belgium Poland 290 58% 63% 68% 73% 78% 83% 88% 93% 9
Slide 14: The leadership in online personal care & OTC market
THE LEADERSHIP IN ONLINE PERSONAL CARE & OTC MARKET Competitive Scenario Farmaè Partners 28% 72% Source: IQVIA (2018) ▪ Conversion Rate from 2.1% to around 4.0% in the last three years ▪ An efficient Customer Care service with 8 pharmacists and 3 operating units 14
Slide 15: Unparalleled offering
UNPARALLELED OFFERING ▪ ~ 40k SKUs* ▪ 31% average discount vs offline OTC Cosmetics ▪ High value products with long shelf life 11% 29% ▪ Small weight and size Parapharmaceuticals 10% ▪ Low return rates 4% Fitoterapics ▪ Extended customer lifetime 1% Child care 2% Omeopatics 3% Orthopedics and electr
Slide 16: Beautyè in the beauty & professional market
BEAUTYÈ IN THE BEAUTY & PROFESSIONAL MARKET Great development potential thanks to: Competitive Scenario • Leverage on www.farmaè.it’s database • Partnerships with main brands • Tech Know-how • Great investments of the main industries in the field • High overlapping of consumers between luxury and ha
Slide 17: A new concept for beauty luxury & hair care professional brands
A NEW CONCEPT FOR BEAUTY LUXURY & HAIR CARE PROFESSIONAL A new platform dedicated to the offer of Luxury and Professional Products Products’ contents provided directly by the brands Brands’ Look&Feel Replication BRANDS 17
Slide 18: The new Love Destination on the sea-front of Viareggio
The new Love Destination on the sea-front of Viareggio The first interactive store in Italy to guarantee an immersive customer experience Enhanced audio / sensorial experiences with home automation A fully technological Store built on 3 floors: • Ground floor: dedicated to the world of luxury (make-
Slide 19: A clear strategy to consolidate market leadership
A CLEAR STRATEGY TO CONSOLIDATE MARKET LEADERSHIP Efficient Set-up of a fully owned 5,000 square meters warehouse in Pisa which will allow: (i) logistics & 32,000 orders per day; (ii) enhancement of the accuracy and efficiency of the service fulfillment processes; (iii) operating costs reduction and
Slide 20: Financials
INSERISCI IL COUPON AUTUMNS | Promo valida feo “FFARMAe Financials +FARMAEGROUP
Slide 21: An exponential growth
AN EXPONENTIAL GROWTH Site Visits (m) Products Sold (m) +101% +88% 22,8 4,2 13 2,7 8,1 8,8 1,4 1,7 5,5 0,7 2016 2017 2018 2019 31.03.2020 2016 2017 2018 2019 31.03.2020 Orders (k) Active Customers(k) +82% +73% 814,8 328,9 228,8 523 190,0 303,0 137 260,9 111,0 67,2 2016 2017 2018 2019 31.03.2020 2016
Slide 22: 2019 results' strong improvement
2019 RESULTS’ STRONG IMPROVEMENT Stellar Revenue Growth mainly driven by the expansion of online sales (+87.7% CAGR) and the New Openings of brick & mortar stores (+32.1% CAGR) Revenues (€/m) EBITDA (€/m) 37.5 +71% +10x 24.8 13.3 13.5 7.6 3.4 2015 2016 2017 2018 2019 31.03.2020 EBIT (€/m) Net Profit
Slide 23: Profit & loss statement
PROFIT & LOSS STATEMENT €/000 2019 2018 YoY % Difference Sales Revenues 37,532 24,779 51% 12,753 Change in Inventories 3,868 3,074 26% 794 Revenues up 51% driven by online Value of Production 41,400 27,853 49% 13,547 Materials used 29,039 19,012 53% 10,027 Personnel costs increased by 60% Costs of s
Slide 24: Business units analysis
BUSINESS UNITS ANALYSIS Business Units analysis confirms the strong growth in all business segments €/000 12/31/2019 12/31/2018 YoY % + 50% YoY Online Sales growth, thanks to the increase of the number of references and the customer base expansion Online Sales 34,214 22,788 50% Offline Sales 1,995 1
Slide 25: Financial highlights
FINANCIAL HIGHLIGHTS Farmaè enjoys a structurally negative commercial working capital €/000 12/31/2019 12/31/2018 Net financial provision improvement from € -1.2m to €2.2m Fixed Assets 7,506 3,900 New investments for €4.6 m of which €1.5m IPO costs Net Working Capital 2,697 (319) A new leasing contr
Slide 26: Contatti
Contatti Farmaè S.p.A. Media Relations IR Manager Via Aurelia Nord 141 – 55049 Viareggio Daniele Pinosa – SEC S.p.A. Alberto Maglione (LU) pinosa@secrp.com ir@farmaegroup.it www.farmaegroup.it Ph. +39 0584 1660552 M. +39 335 7233872 IR Advisor Fabio Santilio – SEC S.p.A. Vincenza Colucci – CDR Commu
Slide 27: Disclaimer
Disclaimer “This Presentation contains certain forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes," "expects," "predicts," "intends," "projects," "plans," "est
Slide 28: Thank you
THANK YOU +FARMAEGROUP