Douglas Ag · XETR:DOU
Douglas — Debt Investor Presentation (February 2023)
37 slides from Douglas's debt investor presentation, Feb 17, 2023
Slide 1: Q1 Operational & Financial Results Q1 2022/23
DÜSSELDORF, 17.02.2023 Q1 OPERATIONAL & FINANCIAL RESULTS Q1 2022/23
Slide 2: Today's Speakers
T O DAY ‘ S SPEAKERS SANDER VAN DER LAAN MARK LANGER CEO DOUGLAS GROUP CFO DOUGLAS GROUP 2
Slide 3: Agenda
AGENDA 01 Q1 OVERVIEW 02 Q1 FINANCIALS 03 UPDATE ON STRATEGY PROCESS 04 WRAP UP & Q&A 3
Slide 4: New Brand Communication Campaign
NEW BRAND CO M M U NICAT IO N CAM PAIGN 4
Slide 5: "Beauty is ..." Campaign as Kick-off
“BEAU T Y IS …“ CAMPAIGN AS KICK-OFF International campaign kicks off new visual identity; launched on 15 February across stores and online Renowned testimonials: Hollywood star Diane Kruger, actor Elyas M‘Barek, beauty and fashion models Ajok Madel and Alexandra Agoston Campaign to set an impulse f
Slide 6: Q1 Overview
01 Q1 OVERVIEW SANDER VAN DER LAAN CEO DOUGLAS GROUP 6
Slide 7: Significant growth in net sales and adjusted EBITDA
Significant growth in net sales1 +11.5% with strong growth in stores (lfl: +17.3%) and accelerated growth of +8.9% in E-Commerce (lfl: +6.1%) Even stronger growth in adjusted EBITDA2 +19.7% All segments contributed to our strong Q1 performance, omnichannel success 1 Adjusted for Net Sales of closure
Slide 8: Sales Highlights Q1
SAL ES H IGH L IGHT S Q1 CHRISTMAS AND BLACK FRIDAY PROVED SUCCESSFUL Successful Christmas business both in stores and online with growth across all categories Our largest category Fragrance did well during Christmas (+13%); very positive development in Make-up (+17%) Top sellers and brands across c
Slide 9: Significant Increase in Sales and Profitability
SIGNIFICANT INCREASE IN SALES AND PROFITABILITY STRONG NET SALES, ADJUSTED EBITDA & MARGIN NET SALES1 ADJ. EBITDA² in m€ 1,439 1,291 +11.5% 308 257 +19.7% +13.4% lfl 19.9% 21.4% MARGINS Q1 2021/22 Q1 2022/23 Q1 2021/22 Q1 2022/23 Strong sales development in Christmas quarter: Customers attracted by
Slide 10: Market & Macro Trends
M ARKET & M ACRO T RENDS BRIGHTENED PERSPECTIVES DESPITE PERSISTENT UNCERTAINTIES Economic challenges remain such as high inflation, interest rate hikes and ongoing economic uncertainty However, economic sentiment in Europe has slightly brightened over recent months; in Germany consumer sentiment ha
Slide 11: Category Trends
CAT EGO RY T RENDS STRONG GROWTH ACROSS ALL CATEGORIES FRAGRANCE SKINCARE Largest category achieved Positive growth; THE further growth; continued ORDINARY continued to success of Billie Eilish and perform extremely well, remarkable international now #4 brand in skincare rollout of Gisada (#5 catego
Slide 12: Q1 Financials
02 Q1 FINANCIALS MARK LANGER CFO DOUGLAS GROUP 12
Slide 13: DACHNL Q1 2022/23
DACH NL Q1 2022/ 23 STRONG IMPROVEMENT IN STORE TRAFFIC NET SALES ADJ. EBITDA1 Net sales increase driven by +21.1% in m€ in m€ growth in Store business (+24.2% lfl) 701 and +10.1% E-Com sales (+5.8% lfl) +15.9% 604 Net sales increase in Stores due to higher footfall, good basket sizes in E-Com compe
Slide 14: France Q1 2022/23
F RANCE Q1 2022/ 23 STABLE DEVELOPMENT AT SUSTAINED HIGH MARGIN NET SALES ADJ. EBITDA1 Net sales increase driven by +1.9% in m€ in m€ growth in Store business (+4.4% lfl), 321 325 +1.4% E-Com stable at -0.2% Net sales increase at stable footfall in Stores and more visits in E-Com but with lower conv
Slide 15: Southern Europe Q1 2022/23
SO U T H ERN EU RO PE Q1 2022/ 23 OVERALL SALES INCREASE DESPITE STORE CLOSURES NET SALES1 ADJ. EBITDA2 Net sales1 increase driven to the in m€ in m€ same extent by +2.4% growth in 208 213 Stores (17.8% lfl) despite closures in +2.5% Spain and +2.7% in E-Com business Net sales1 increase due to highe
Slide 16: Central Eastern Europe Q1 2022/23
CENT RAL EAST ERN EU RO PE Q1 2022/ 23 HIGHEST SALES AND MARGIN GROWTH NET SALES ADJ. EBITDA1 Net sales increase driven nearly to in m€ in m€ the same extent by +24.6% growth in 199 Stores (23.9% lfl) and +24.0% in +24.5% E-Com 160 Net sales increase from significantly higher footfall in Stores with
Slide 17: Omnichannel Growth Fueled by Both Channels
OMNICHANNEL GROWTH FUELED BY BOTH CHANNELS Q1 2022/23 GROUP1 STORES1 E-COM in m€ in m€ in m€ 1,439 1,291 +11.5% 973 866 +12.4% +13.4% lfl 426 464 +17.3% lfl +8.9% +6.1% lfl Q1 2021/22 Q1 2022/23 Q1 2021/22 Q1 2022/23 Q1 2021/22 Q1 2022/23 1 Adjusted for Net Sales of closure stores in Spain 17
Slide 18: P&L – All KPIs Significantly Improved
P&L – AL L KPIS SIGNIF ICANT LY IM PRO VED Q1 2022/23 In m€ Q1 2021/22 ³ Q1 2022/23 ∆% Net sales 1,295.9 1,440.6 11.2% adj. Net sales 1 1,291.2 1,439.1 11.5% Gross profit 560.4 635.7 13.4% PY positively influenced by real Gross profit margin 43.2% 44.1% 0.9%p estate disposal; ramp-up costs Net opera
Slide 19: NWC Improved Again; Upgrading Stores
NWC IM PRO VED AGAIN; U PGRADING ST O RES AS OF 31 DECEMBER 2022 In m€ NET WORKING CAPITAL CAPEX 71 68 15 10 2.2% 1.8% NWC AS % OF NES 31.12.21 31.12.22 Q1 2021/22 Q1 2022/23 Decrease in NWC mainly driven by higher payables Capex was equally split between Stores and E-Com. DIO decreased to 126 (PY:
Slide 20: Free Cash Flow Significantly Improved
F REE CASH F L O W SIGNIF ICANT LY IM PRO VED Q1 2022/23 In m€ 415 402 402 -13 0 82 308 -9 -28 63 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) (Cash effect) 4 Q1 2021/22 257 -14 113 -29 44 372 -1 371 0 371 1 Excl. M&A-related
Slide 21: Significant Reduction in Leverage Ratio
SIGNIF ICANT REDU CT IO N IN L EVERAGE RAT IO AS OF 31 DECEMBER 2022; INCLUDING IFRS 16 EFFECTS CASH BALANCE In m€ +8.5% 676 €10.4m used or 623 reserved for rental 160 guarantees (PY: 158 (RCF) €11.9m) (RCF) (RCF) TOTAL NET LEVERAGE1 ADJUSTED EBITDA (LTM)2 In m€ 5.9x 653 517 4.7x 465 512 (cash) (cas
Slide 22: Update on Strategy Process
03 UPDATE ON STRATEGY PROCESS SANDER VAN DER LAAN CEO DOUGLAS GROUP 22
Slide 23: Update on Strategy Process
U PDAT E O N ST RAT EGY PRO CESS DEVELOPMENT IS PROCEEDING WE ARE ALREADY WELL POSITIONED, BUT THERE IS ROOM FOR IMPROVEMENT We aim to maintain and accelerate top-line growth and to improve profit and cash generation. 2018 2020 • ASSESSMENT #FORWARD #FORWARD BEAUTY. • RESHAPE STRATEGY We will furthe
Slide 24: Wrap Up & Q&A
04 WRAP UP & Q&A SANDER VAN DER LAAN CEO DOUGLAS GROUP MARK LANGER CFO DOUGLAS GROUP 24
Slide 25: Summary
SU M M ARY DOUGLAS achieved a strong start into the new fiscal year 2022/23 with sales growth across the board and all channels despite continuously challenging environment Store business continued impressive upward trend (+17.3% lfl), contributed strongly to overall improvement E-Commerce growth co
Slide 26: Notice to Recipients
NO T ICE T O RECIPIENT S This presentation and any materials distributed in connection herewith (together, the taxation or other advice, and the Presentation does not take into account your objectives or legal, forward-looking statement whether as a result of new information, future events or otherw
Slide 27: Thank You
THANK YOU LOUGLAS
Slide 28: Appendix
APPENDIX 28
Slide 29: Adjustments to EBITDA
ADJU ST M ENT S T O EBIT DA Q1 2022/23 (in m €) Q1 2021/22 Q1 2022/23 12M 2020/21 12M 2021/22 Reported EBITDA 256.5 295.0 291.3 530.0 Consulting fees 3.7 4.0 8.0 29.4 Q1: Mainly for OWAC Restructuring costs1 0.0 2.2 0.3 32.8 PPA -0.1 -0.1 4.1 -0.4 COVID-19 1.3 0.1 97.2 -4.1 In PY Q1 one- time income
Slide 30: Selected Segmental KPIs
SEL ECT ED SEGM ENT AL KPIS Q1 2022/23 In m€ REPORTED EBITDA CAPEX Q1 2021/22 Q1 2022/23 Q1 2021/22 Q1 2022/23 DACHNL 111.5 148.0 DACHNL 2.5 3.3 France 83.0 81.8 France 1.5 2.3 Southern Europe 49.9 54.5 Southern Europe 1.4 1.1 Central Eastern Europe 45.4 59.6 Central Eastern Europe 0.3 1.5 Corporate
Slide 31: Deep Dive into LFL Net Sales Development
DEEP DIVE INT O L F L NET SAL ES DEVEL O PM ENT QUARTERLY OVERVIEW Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 Q1 2022/23 DACHNL 11.7% 43.9% 39.5% 11.6% 15.4% France 14.7% 29.4% 27.7% 3.3% 3.3% Southern Europe 24.7% 32.3% 24.9% 12.0% 15.1% Central Eastern Europe 36.4% 45.7% 42.6% 13.2% 23.9% Group 1
Slide 32: Net Working Capital
NET WO RKING CAPIT AL AS OF 31 DECEMBER 2022 217 In m€ 183 115 71 68 NWC as % of 2.2% 6.3% 5.1% 3.1% 1.8% LTM net sales 31.12.2021 31.03.2022 30.06.2022 30.09.2022 31.12.2022 31.12.2021 31.03.2022 30.06.2022 30.09.2022 31.12.2022 ~5% more inventory to counter supply chain Inventory 699.8 684.8 652.0
Slide 33: Cash Flow Statement
CASH F L O W ST AT EM ENT Q1 2022/23 In m€ Q1 2021/22 Q1 2022/23 Mainly timing Net cash flow from operating activities 382.7 430.4 differences regarding the Net cash flow from investing activities -11.6 -28.1 investments made and increased Free cash flow 371.1 402.3 investment volume Net cash flow f
Slide 34: Cash and Financial Debt Structure
CASH AND F INANCIAL DEBT ST RU CT U RE AS OF 31 DECEMBER 2022 In m€ m€ x Adj. EBITDA2 Maturity Pricing Cash and cash equivalents 517 €10.4m used or reserved for RCF (€170m Volume) 0 Jan 26 E+4.75% rental guarantees (PY: E+5.5% Term Loan B (B3/B-/B) 675 Apr 26 €11.9m) (99% OID) Senior Secured Notes (
Slide 35: Store Network across Europe
ST O RE NET WO RK ACRO SS EUROPE AS OF 31 DECEMBER 2022 NUMBER OF STORES DEVELOPMENT 1,983 1,844 31 Dec 2021 (m€) – 31 Dec 2022 133 133 Store openings 24 1,850 Store closures -163 1,711 Total -139 Dec 21 Dec 22 Store openings: 3 stores in DACHNL (DE, NL), 1 in France, 2 in South Europe (IT) and Own
Slide 36: IFRS 16 Effects on P&L – Q1
IF RS 16 EF F ECT S O N P&L – Q 1 in m€ pre IFRS 16 post IFRS 16 Delta - pro forma - Net sales 1,440.6 1,440.6 0.0 Gross profit 635.7 635.7 0.0 Other expenses decreased by Other income 95.2 95.3 0.1 €68.0m as lease expenses which Personnel expenses -164.4 -164.4 0.0 are to be capitalised following I
Slide 37: IFRS 16 Effects on P&L – LTM
IF RS 16 EF F ECT S O N P&L – L T M in m€ pre IFRS 16 post IFRS 16 Delta - pro forma - Net sales 3,822.1 3,822.1 0.0 Gross profit 1,694.3 1,694.3 0.0 Other income 285.6 291.9 6.3 Personnel expenses -606.1 -606.1 0.0 Other expenses -1,084.0 -811.6 272.4 EBITDA 289.8 568.5 278.7 Adj. to EBITDA 84.7 84