Platform Group Se & Co. Kgaa · XETR:TPG0
Platform Group Se & Co. Kgaa — The Platform Group — Investor Day (June 2024)
114 slides from Platform Group Se & Co. Kgaa's investor day presentation, Jun 11, 2024
Slide 1: Capital Market Day June 11, 2024
CAPITAL MARKET DAY JUNE 11, 2024 1
Slide 2: Capital Markets Day
CAPITAL MARKETS DAY Dr. Dominik Benner Laura Vogelsang Heinrich Traude Christoph Wilhelmy Reinhard Hetkamp 2 M&A COO CFO
Slide 3: Agenda
AGENDA 1 At a Glance 2 Platforms for success 3 Financial Perspective 4 TPG‘s M&A Approach 5 TPG‘s Software Strategy 3
Slide 4: The Platform Group: At a glance
1 THE PLATFORM GROUP At a glance 4
Slide 5: Our Management Structure
OUR MANAGEMENT STRUCTURE Supervisory Board Stefan Schütze ▪ Jens Wasel ▪ Dominik Barton (Chairman) ▪ Florian Müller Management Board CFO Dr. Dominik Benner Laura Vogelsang Reinhard Hetkamp CEO Mgmt. Board CFO TPG AG ▪ TPG since 2012 ▪ TPG since 2018 ▪ >20 years experience ▪ 5th generation family ▪ >
Slide 6: TPG Guidance 05/2024
TPG GUIDANCE 05/2024 CONTINUING OPERATIONS 2024 FY Mid-term (2025) Adj. EBITDA Revenue Adj. EBITDA GMV Leverage GMV Margin €480-500m €26-30m €840-870m 1.5 – 2.3x €1bn 7-10% 6
Slide 7: TPG Stock
TPG STOCK 200m€ Market Cap 70% Benner Holding Guidance Update 05/2024 7
Slide 8: Latest Developments (3 Month)
LATEST DEVELOPMENTS (3 MONTH) Acquisition of Acquisition of Acquisition of Avocadostore GmbH HOOD Media GmbH OEGE GROUP (platform for sustainable (platform for consumer (B2B platform company) products) products) 8
Slide 9: Latest Developments (3 Month)
LATEST DEVELOPMENTS (3 MONTH) Number of Partners 2024 vs. 2023 11.987 Acquisition of hood.de +4.900 partners + 3 Mio. SKU‘s Acquisition of Avocadostore 4.953 +1.400 partners 03/2023 03/2024 9
Slide 10: Latest Developments (3 Month)
LATEST DEVELOPMENTS (3 MONTH) Reduction of minority Reduction of minority Reduction of minority shareholders: shareholders: shareholders: Möbelfirst ViveLaCar Group Lott Carparts (new: 100%) (new: 100%) (new: 100%) 10
Slide 11: Latest Developments (3 Month)
LATEST DEVELOPMENTS (3 MONTH) Reduction of minority shareholders: Group Structure since ApoNow / Doc.Green 03/2024 (new: 80%) The Platform Group AG The Platform Group fashionette Brandfield BV GmbH & Co. KG GmbH New COO: New COO: Christoph Wilhelmy Stefan Miebach (04/2024) (03/2024) 11
Slide 12: Our Future Strategy
OUR FUTURE STRATEGY POWER OF SCALE CONTINUED M&A GEOGRAPHICAL LEADING POSITION NEW MARKETS EXPANSION EXPANSION Becoming the No.1 Expanding into 30 3-8 Acquisitions per Increasing Platform in Europe industries by 2025 year geographical footprint outside of Organic growth Long-term goal of Germany hig
Slide 13: The Platform Group: Platforms for success
2 THE PLATFORM GROUP Platforms for success 13
Slide 14: Partners get access to global ecommerce – 22 industries covered
WITH TPG SOFTWARE OUR PARTNERS GET ACCESS TO GLOBAL ECOMMERCE – 22 INDUSTRIES COVERED CONSUMER GOODS FREIGHT GOODS Software-solutions for B2B + B2C small- & medium-sized customers business partners INDUSTRIAL GOODS SERVICE & RETAIL 10 local GOODS Stores Source: Company. Overview of subsidiaries/bran
Slide 15: Segment Overview
THE PLATFORM GROUP: SEGMENT OVERVIEW Consumer Goods Freight Goods Revenues by Segment (Q1 2024) (in m€, continuing operations) Products with simple Products with complex logistics and focus on transport, logistics and consumer goods delivery processes in the Sustainable Products area of freight logi
Slide 16: Our Core Competencies
OUR CORE COMPETENCIES Our CORE Competencies Software Interfaces Marketing 16
Slide 17: How We Create Value for Our Partners
HOW WE CREATE VALUE FOR OUR PARTNERS UNIQUE BASIS FOR SCALING PLATFORMS AND PARTNERS ALIKE COMPETITIVE ADVANTAGE TECHNOLOGICAL EDGE TPG’s unique software allows it to integrates platforms and thus scale resources and know-how. In addition, partners are effortlessly integrated via standardized interf
Slide 18: How We Create Value for Our Partners
HOW WE CREATE VALUE FOR OUR PARTNERS HOW WE CREATE VALUE FOR THE PARTNER IT Merchandise Product photos mgmt. system Value Chain TPG Marketing Shipping (Re-)pricing Payment Packaging Analytics Return management Source(s): Company 18
Slide 19: How We Ramp Up Revenues for Our Partners
HOW WE CREATE VALUE FOR OUR PARTNERS HOW WE RAMP UP REVENUES FOR OUR PARTNERS Typical Point of Sale (POS), fashion IT Merchandise Product photos mgmt. system Value Chain TPG 200 TEUR additional revenue with +27% 1.4m€ existing inventory Our partner Marketing Shipping can cover (Re-)pricing Payment 1
Slide 20: How We Ramp Up Revenues for Our Partners
HOW WE CREATE VALUE FOR OUR PARTNERS HOW WE RAMP UP REVENUES FOR OUR PARTNERS Typical Point of Sale (POS), fashion 1.1m€ 0.3m€ Local revenue Online revenue -49% material -47% material 200 TEUR additional -17% HR -6% HR revenue with +27% 1.4m€ existing inventory -12% rents -21% platform -15% others -
Slide 21: Our Statement on Value Creation
OUR STATEMENT ON VALUE CREATION “We do not accept cash burning. Our company never did.” “We have to acquire companies for fair values, meaning badwill is not an exception. And we develop their value over time.” “Our TPG-approach gives us the opportunity to buy highly attractive online-players in nic
Slide 22: SaaS-Models
SAAS-MODELS Why do we NOT make SaaS-Revenues? Control Value creation Replaceability We want to have full control on the When we would offer only SAAS-solutions to eCommerce Value Chain. Means: Not just external parties, we would have nice offering software, we make A-Z as a full %margins, but after
Slide 23: Our Decision Funnel for New Industries
OUR DECISION FUNNEL FOR NEW INDUSTRIES TPG decision funnel for entering new industries Value Creation: Control Selection of Industry: Entering Industry: ▪ Our holding is not a financial holding, ▪ Classic make or buy decision we are an operative holding with more ▪ Are more than 150 potential ▪ If t
Slide 24: How We Acquire Companies
HOW WE ACQUIRE COMPANIES Our Requirements for new M&A Targets Revenue & Status of the Profitability & Strategy & Customers Company Debt IT Revenue range Sufficient Platform Diversified €3-100m No early phase management strategy (or High IT/ERP Customer base investments, levels, no risk of EBITDA adj
Slide 25: How We Acquire Companies
HOW WE ACQUIRE COMPANIES “We have to acquire companies for fair values, meaning badwill is not an exception. And we develop their value over time.” 25
Slide 26: M&A Pipeline Q2 2024
M&A PIPELINE Q2 2024 B2B eCommerce B2C Luxury Platform B2C Sports ▪ >80m€ Revenue ▪ 7-8m€ Revenue ▪ 21m€ Revenue ▪ 70 employees ▪ 30 employees ▪ 40 employees ▪ Located in Germany ▪ Located in Netherlands ▪ Located in Germany Acquisition: Acquisition: Acquisition: ▪ 50,1% Acquisition ▪ 50,1% Acquisit
Slide 27: The Platform Group: Financials
3 THE PLATFORM GROUP Financials 27
Slide 28: Overview Pro-Forma FY 2023/FY 2022
OVERVIEW PRO-FORMA FY 2023/FY 2022 CONTINUING OPERATIONS 2022 2023 Guidance / market expectation GMV € 591m € 705m Net revenue (EUR m) € 387.4m € 440.8m GMV-Guidance: € 700m → Achieved / outperformed. Other revenues (EUR m) € 29.0m €32.8m Gross Margin 34.8% 31.1% Revenue-Guidance: € 440m → Achieved
Slide 29: Overview Pro-Forma FY 2023/FY 2022
OVERVIEW PRO-FORMA FY 2023/FY 2022 CONTINUING OPERATIONS 2022 2023 Guidance / market expectation Net profit (EUR m), continuing operations € 24.8m € 33.3m Net profit (EUR m), not-continuing Earnings per share (FY 2023) above expectations. operations € -3.3m € -6.4m Net profit (EUR m), total € 21.5m
Slide 30: Pro-Forma Consolidated Cash Flow
Consolidated cash flow statement 2023 PRO-FORMA Period result 26.932.008 CONSOLIDATED Result from discontinued operations Earnings before taxes from continuing operations 6.381.032 33.313.040 CASH FLOW Adjustments for STATEMENT Profit from business acquisitions (25.274.443) Depreciation (+) / write-
Slide 31: Overview Q1 Report 2024
OVERVIEW Q1 REPORT 2024 (VS. Q1 2023 PRO-FORMA) CONTINUING OPERATIONS Q1 2024 Q1 2023 Takeaways GMV € 190.6m € 161.0m Net revenue (EUR m) € 107.9m € 84.2m Q1 traditionally lowest quarter in FY-perspective Other revenues (EUR m) € 9.8m € 7.5m GMV Growth +18% / Revenue Growth +28%: both Gross Margin 3
Slide 32: Overview Q1 Report 2024
OVERVIEW Q1 REPORT 2024 (VS. Q1 2023 PRO-FORMA) CONTINUING OPERATIONS Q1 2024 Q1 2023 Takeaways Net profit (EUR m), continuing operations € 12.9m € 9.7m Earnings per share with € 0.65 and growth of +33% Net profit (EUR m), not-continuing € -1.5m € -1.5m (continuing operations): above internal foreca
Slide 33: Strong GMV and Revenue Growth
STRONG GMV AND REVENUE GROWTH CONTINUING OPERATIONS GMV Growth 3M Revenue Growth 3M € 190.6 m +18% € 107.9 m +28% € 161.0 m YoY YoY € 84.2 m 03/2023 03/2024 03/2023 03/2024 PRO-FORMA PRO-FORMA 33
Slide 34: Profitability as a Key for Sustainable Growth
PROFITABILITY AS A KEY FOR SUSTAINABLE GROWTH CONTINUING OPERATIONS EBITDA adj. 3M EBITDA reported 3M € 16.7 m € 8.5 m +25% +26% YoY € 13.3 m YoY € 6.8 m 03/2023 03/2024 03/2023 03/2024 PRO-FORMA PRO-FORMA 34
Slide 35: From EBITDA Adjusted to EBITDA Reported
FROM EBITDA ADJUSTED TO EBITDA REPORTED EBITDA €16.7m Reported EBITDA Adjusted €8.5m €7.7m Adjustments €1.0m €0.55m Purchase Price Deferred tax & Allocation consolidation Results effects (2 acquisitions) Q1 2024 results, continuing operations. PPA-Results due to IFRS3 and deferred tax & consolidatio
Slide 36: Non-Financial KPI
THE PLATFORM GROUP: NON-FINANCIAL KPI Q1 2024 Q1 2023 Takeaways Number of Orders 938.312 751.487 Positive development: More partners (11.987) bring more Average order value (EUR) 115 112 products. More products bring more customers (4.4m), more customers bring more orders (Q1: 0.9m). Active Customer
Slide 37: New Guidance 2024
NEW GUIDANCE 2024 (GUIDANCE 05/2024) CONTINUING OPERATIONS GMV Guidance FY 2024 Revenue Guidance FY 2024 € 840-870 m € 480-500 m € 760-800 m € 460-470m GUIDANCE GUIDANCE GUIDANCE GUIDANCE 01/2024 05/2024 01/2024 05/2024 37
Slide 38: New Guidance 2024
NEW GUIDANCE 2024 (GUIDANCE 05/2024) CONTINUING OPERATIONS EBITDA adj. Guidance FY 2024 Partners >12.800 € 26-30 m 11.987 € 24-28 m GUIDANCE GUIDANCE 03/2024 GUIDANCE 01/2024 05/2024 31.12.2024 38
Slide 39: GMV Development
THE PLATFORM GROUP: GMV DEVELOPMENT € 840-870m € 705 m € 591 m € 504 m 2021 2022 2023 2024e Pro-Forma figures for FY 2022, 2023. FY 2022 and FY 2023 continued operations. 2024e according to guidance. 2021 TPG/Fashionette combined. 39
Slide 40: Revenue Development
THE PLATFORM GROUP: REVENUE DEVELOPMENT € 480-500 m € 441 m € 387 m € 241 m 2021 2022 2023 2024e Pro-Forma figures for FY 2022, 2023. FY 2022 and FY 2023 continued operations. 2024e according to guidance. 2021 TPG/Fashionette combined. 40
Slide 41: Adjusted EBITDA Development
THE PLATFORM GROUP: ADJUSTED EBITDA DEVELOPMENT € 26-30 m € 23 m € 12 m € 12 m 2021 2022 2023 2024e Pro-Forma figures for FY 2022, 2023. FY 2022 and FY 2023 continued operations. 2024e according to guidance. 2021 TPG/Fashionette combined. 41
Slide 42: Group Financing
GROUP FINANCING SOUND USE OF DEBT FUNDING RETAINS FLEXIBILITY AND REDUCES RISK 3,0 NET DEBT / EBITDA 2,5 Target leverage: 1.5 – 2.3x LTM EBITDA 2,0 1,5 2,6 2,3 2,2 1,0 1,9 1,7 0,5 0,0 2023 2024e 2025e 2026e 2027e Leverage Source(s): Company information 42
Slide 43: TPG Guidance Midterm Guidance
TPG GUIDANCE MIDTERM GUIDANCE CONTINUING OPERATIONS 2025 FY INCREASE of Revenue Adj. EBITDA GMV MIDTERM €550m 7-10% €1.1bn GUIDANCE 43
Slide 44: M&A as a key discipline for value generation
4 THE PLATFORM GROUP M&A as a key discipline for value generation 44
Slide 45: Our M&A Strategy
Our M&A Strategy 45
Slide 46: TPG's Strategy
TPG‘S STRATEGY CLEAR VISION AND ROADMAP TO BECOME EUROPE‘S LEADING PROFITABLE PLATFORM GROUP No 1 platform in Europe Long-term Above market balanced organic Expansion to 30 organic growth and inorganic industries by 2025 trajectory growth (50/50) Improvement of Continuing Sustained Extension of Furt
Slide 47: Value Creation
VALUE CREATION UNIQUE ECOSYSTEM TO DIGITIZE PARTNERS AND PAVE THE WAY FOR ONLINE COMMERCE 1882 22 originated platforms +12.000 Partners Customers >4.4m partners customers Duesseldorf 22 headquarter industries KEY FEATURES ASSET LIGHT SOFTWARE ENABLED PROCESS EXCELLENCE PARTNER CENTRIC STRATEGY DRIVE
Slide 48: Mission / Vision
MISSION/ VISION BECOMING EUROPE‘S BIGGEST PLATFORM GROUP BY 2025 Mission Vision TPG will sustainably secure its international business success TPG will create a future where stationary and online retail are through its sense of responsibility for the community. This linked in all industries, giving
Slide 49: Strategy and Business Model
STRATEGY AND BUSINESS MODEL SOFTWARE-ENABLED GROUP ACQUIRING, OPERATING AND IMPROVING PLATFORMS STRATEGY IN BRIEF No 1 platform Taking the leading position in Europe's e-commerce platform landscape via usage of different growth levers and organic in Europe above market growth Exploitation of the pow
Slide 50: Business Model
BUSINESS MODEL SOFTWARE-ENABLED GROUP ACQUIRING, OPERATING AND IMPROVING PLATFORMS BUSINESS MODEL IN BRIEF TPG is a software enabled group that acquires, operates and improves e-commerce platforms via its operational holding E-commerce platforms as underlying business model that serve THE PLATFORM G
Slide 51: Investment Experience
INVESTMENT EXPERIENCE LESSONS LEARNED Finding hidden Avoiding meltdowns champions Structured idea Qualitative idea generation generation Financials People Source(s): Company 51
Slide 52: The Best of Two Worlds
THE BEST OF TWO WORLDS TPG‘S UNIQUE APPROACH COMBINES HIGH RETURNS AND LOW RISK High acquisition ratio Diversified industry base Above industry return High returns Low risk Moderate leverage Dual growth levers Platform executive ownership Source(s): Company 52
Slide 53: Historical Milestones
HISTORICAL MILESTONES FROM A FAMILY-RUN SMALL BUSINESS TO AN INNOVATIVE PUBLICLY TRADED PLATFORM GROUP Foundation as a local Dr. Benner joins and Launch of retailer for shoes and revamps the brick- and entry into a new consumer goods and-mortar company market segment 1886 2012 2018 2013 2019 Launch
Slide 54: Segment Overview
SEGMENT OVERVIEW TPG HAS ORGANIZED ITS PORTFOLIO INTO FOUR CENTRAL BUSINESS SEGMENTS CONSUMER GOODS FREIGHT GOODS Accessories Fashion/ Luxury Jewelry and Shoes Bicycles Cars E-Scooters Forest Furniture watches Equipment INDUSTRIAL GOODS SERVICE & RETAIL Car/ truck Dental Hair- Industrial Trading Fac
Slide 55: TPG's systematic M&A Approach & empirical Evidence
TPG‘s systematic M&A Approach & empirical Evidence 55
Slide 56: TPG is the Systematic Acquirer in E-Commerce
TPG IS THE SYSTEMATIC ACQUIRER IN E-COMMERCE CONTINUOUSLY PURCHASING, OPERATING AND OPTIMIZING E-COMMERCE PLATFORMS Systematic approach of TPG We drive sustainable growth and enhance shareholder value by strategically acquiring profitable, niche platforms with strong financials and value add potenti
Slide 57: A Private Strategy for Public Markets
A PRIVATE STRATEGY FOR PUBLIC MARKETS STRATEGIZING GROWTH THROUGH PROGRAMMATIC ACQUISITIONS ACQUISITION-DRIVEN COMPUNDERS VS PRIVATE EQUITY INVESTORS Permanent home 5-7 years Investment horizon Stability Unpredictable Continuity of culture Internal Due Diligence Long process Due Diligence Board memb
Slide 58: A Private Strategy for Public Markets
A PRIVATE STRATEGY FOR PUBLIC MARKETS STRATEGIZING GROWTH THROUGH PROGRAMMATIC ACQUISITIONS ACQUISITION-DRIVEN COMPUNDERS TPG APPROACH PRIVATE EQUITY INVESTORS Permanent home 5-7 years Investment horizon Stability Unpredictable Continuity of culture Internal Due Diligence Long process Due Diligence
Slide 59: Analysis of Business Models
ANALYSIS OF BUSINESS MODELS SERIAL ACQUIRERS FUNDAMENTALLY DIFFER IN THEIR APPROACH TO TRADITIONAL INVESTORS TPG AS AGILE SERIAL ACQUIRER VS TRADITIONAL M&A BUYER Sound combination of cash, debt and TPG shares Traditional financing structure Strong incremental return on capital Average incremental r
Slide 60: Our Empirical Background
OUR EMPIRICAL BACKGROUND MCKINSEY ANALYSIS 2019 Source: Global 1,000; McKinsey; Thomson Reuters; Commentary: Global 1,000 companies that are among top 1,000 by market capitalization, excludes companies headquartered in Africa and Latin America 60
Slide 61: Identifying Acquirer Characteristics
IDENTIFYING ACQUIRER CHARACTERISTICS PROGRAMMATIC ACQUIRERS FREQUENTLY COMPLETE SMALL DEALS WITH HIGH FREQUENCY TYPES OF ACQUIRERS SHAREHOLDER RETURNS Programmatic acquirers achieved excess total returns to shareholders that were higher high than the median Programmatic Selective Large-deal Organic
Slide 62: What Programmatic Acquirers Do Differently
WHAT PROGRAMMATIC AQUIRERS DO DIFFERENTLY ENHANCING M&A STRATEGY WITH PROGRAMMATIC PRECISION AND ALIGNMENT In M&A strategy and sourcing, respondents at programmatic acquirers are more likely than Companies with a programmatic approach to M&A set go/no-go criteria for each stage of a others to strong
Slide 63: What Programmatic Acquirers Do Differently
WHAT PROGRAMMATIC AQUIRERS DO DIFFERENTLY STREAMLINING M&A WITH DEFINED OWNERSHIP AND SYSTEMATIC PLAYBOOKS Programmatic acquirers are more likely than other companies to have clear owners for each In each phase of the M&A process, programmatic acquirers are likelier than other phase of the M&A proce
Slide 64: Success Story Constellation Software Inc.
SUCCESS STORY CONSTELLATION SOFTWARE INC. DEMONSTRATION OF ACQUISITION-DRIVEN VALUE CREATION CONSTELLATION SOFTWARE Inc. MARK LEONARD, CEO „One of our directors has been calling me irresponsible for years. His Acquisition and holding of companies thesis goes like this: CSI [Constellation Software In
Slide 65: Bergman & Beving – Niche Specialists for >100 Years
BERGMAN & BEVING – NICHE SPECIALISTS FOR >100 YEARS WHY M&A AS A LONGTERM PERSPECTIVE WORKS 65
Slide 66: Danaher Corp – The Acquisition Machine
DANAHER CORP – THE ACQUISITION MACHINE WHY M&A AS A LONGTERM PERSPECTIVE WORKS 66
Slide 67: It's All About Profitable Growth
IT‘S ALL ABOUT PROFITABLE GROWTH SUSTAINABLE VALUE CREATION IS THE KEY DRIVER FOR LONG-TERM TOTAL SHAREHOLDER RETURN Sources of total shareholder return for top-quartile performers THE GROWTH PARADOX S&P 500 (1990-2009) Revenue growth is crucial for long-term value 100% creation, driving most of the
Slide 68: Long-Term Investment Results
LONG-TERM INVESTMENT RESULTS VARIOUS FACTORS DRIVE LONG-TERM INVESTMENT RESULTS FOR TPG’S INVESTMENTS PROFITABLE GROWTH 10+ YEARS TPG’s M&A-approach is always focusing on long-term profitable growth. Means: A subsidiary has to grow organically, reduces working capital with our platform model and red
Slide 69: TPG's M&A Execution and Post-Merger Integration
TPG‘s M&A Execution and Post-Merger Integration 69
Slide 70: Investment Criteria for Targets
INVESTMENT CRITERIA FOR TARGETS TPG SELECTS TARGETS BASED ON A SPECIFIC PROFILE AND HAS A CLEAR ACQUISITION PLAN COMMERCIAL CRITERIA FINANCIAL CRITERIA OPERATIONAL CRITERIA INDUSTRY € 3-100m MANAGEMENT with proven platform potential revenue p.a. that is capable and broad-based NICHE >10-15% IT & ERP
Slide 71: M&A Execution
M&A EXECUTION WHY OUR M&A PROCESS IS DIFFERENT Source(s): Company 71
Slide 72: M&A Execution
M&A EXECUTION QUICK AND EFFECTIVE EXECUTION OF M&A TRANSACTIONS Core M&A process from first contact to signing is executed in 4-8 weeks TARGET MGMT PRE-DUE SITE DUE SPA POST MERGER IDENTIFICATION MEETINGS DILIGENCE VISITS DILIGENCE NEGOTIATIONS INTEGRATION TPG’s Post Merger 1st analysis (1d) of 2st
Slide 73: Operational Holding Concept - Intro
OPERATIONAL HOLDING CONCEPT - INTRO TPG LEVERAGES SYNERGIES BY ITS DUAL CENTRALIZATION AND DECENTRALIZATION APPROACH THE PLATFORM GROUP AG THE PLATFORM GROUP GMBH & CO. KG OPERATIONAL TPG DEPARTMENTS CENTRALIZED TPG DEPARTMENTS Software & IT Marketing Marketplace Human Resources Finance Legal & Law
Slide 74: Operational Holding Concept - Example
OPERATIONAL HOLDING CONCEPT - EXAMPLE TPG PROVIDES BEST-IN-CLASS INHOUSE SOFTWARE AND SERVICES TO ITS PORTFOLIO COMPANIES DEEP INDUSTRY EXPERTISE TPG employs a designated, highly competent marketing team that supports the portfolio companies in all aspects of online marketing. Marketing is a demonst
Slide 75: Sources of Extraordinary Performance
SOURCES OF EXTRAORDINARY PERFORMANCE TPG RELIES ON THREE PILLARS THAT ENABLE SUPERIOR PERFORMANCE COMPARED TO PEERS SOURCES CAPITAL & SOFTWARE DECENTRALIZATION PEOPLE ALLOCATION Software-integration of Consolidation Decentralized: Entrepreneurship, not High tech skills and target & „Own operators“ o
Slide 76: Risk Reduction Through TPG Approach
RISK REDUCTION THROUGH TPG APPROACH TPG SECURES SUSTAINABLE SUCCESS THROUGH MULTIPLE LAYERS OF RISK MANAGEMENT SOFTWARE PLATFORM TPG-software minimizes risks by ensuring the successful SOFTWARE PLATFORM integration of portfolio companies post closing + reduces external software costs by -70% NICHE F
Slide 77: Technical Foundation of Growth
TECHNICAL FOUNDATION OF GROWTH TPG ONE IS OUR CORE SYSTEM – BASED ON 13 YEARS EXPERIENCE IN RETAIL AND ECOMMERCE Source(s): Company 77
Slide 78: Technical Foundation of Growth
TECHNICAL FOUNDATION OF GROWTH HOW PARTNERS INTERACT WITH OUR SOFTWARE AND USE IT IN THEIR DAILY ECOMMERCE ACTIVITIES Source(s): Company 78
Slide 79: Basic E-Commerce Platform Explained
BASIC E-COMMERCE PLATFORM EXPLAINED INTERMEDIARIES BETWEEN PARTNERS THAT SELL AND CUSTOMERS THAT BUY PRODUCTS PARTNERS CUSTOMERS Can differ based on the segment that the Can be private individuals (B2C) or other TPG platform addresses and range from businesses (B2B) based on the segment and stationa
Slide 80: How We Create Value for Our Partners
HOW WE CREATE VALUE FOR OUR PARTNERS UNIQUE BASIS FOR SCALING PLATFORMS AND PARTNERS ALIKE COMPETITIVE ADVANTAGE TECHNOLOGICAL EDGE TPG’s unique software allows it to integrates platforms and thus scale resources and know-how. In addition, partners are effortlessly integrated via standardized interf
Slide 81: Becoming the Preferred Buyer in M&A Cases
BECOMING THE PREFERRED BUYER IN M&A CASES COUNTLESS REASONS FOR ENTREPRENEURS TO SELL TO AND BECOME A PARTNER OF TPG FLEXIBILITY AND EFFICIENCY Exceptionally fast due diligence process and deal execution due to little reliance on external partners INCREASED GROWTH INTELLIGENT HOLDING CONCEPT Operati
Slide 82: Benefits of Being Part of TPG
BENEFITS OF BEING PART OF TPG IDEAL PARTNER FOR SUSTAINABLE GROWTH OPERATIONAL EXCELLENCE POWERFUL SOFTWARE PRAGMATIC MINDSET FINANCIAL STRENGTH Expertise in core online business Unique software system that Goal oriented approach that Access to vast financial resources functions and the integration
Slide 83: TPG's M&A Track Record
TPG‘S M&A TRACK RECORD OVER 20 SUCCESSFUL ACQUISITIONS AND INTEGRATIONS SINCE 2018 (EXCERPT BELOW) 10/ 2020 11/ 2020 11/ 2021 11/ 2021 01/ 2022 02/ 2023 12/ 20231 01/ 2024 09/ 2020 10/ 2020 07/ 2021 11/ 2021 12/ 2021 02/ 2022 10/ 2023 12/ 2023 02/ 2024 Source(s): Company 83
Slide 84: Case Study 1: Gindumac
Case Study 1: Gindumac 84
Slide 85: At a Glance
Case Study | Industrial Goods AT A GLANCE LEADING MACHINE TRANSACTION PLATFORM IN EUROPE KEY PERFORMANCE INDICATORS 2016 25 € 30m Barcelona >500 >7.000 17 Foundation Employees Revenue 2024e Headquarter Logistic partners Listed machines Markets MACHINE CATEGORIES PARTNERS‘ VOICES GOOGLE REVIEWS With
Slide 86: Historical Development & Management
Case Study | Industrial Goods HISTORICAL DEVELOPMENT & MANAGEMENT CONSTANT EVOLUTION TOWARDS THE LEADING PLATFORM FOR USED MACHINERY Daniel Kaiser joins the Benedikt Ruf Gindumac management which Founder / Co-CEO / Managing Partner sets course for the Gindumac and TPG future With GINDUMAC since 2016
Slide 87: Business Model
Case Study | Industrial Goods BUSINESS MODEL GINDUMAC GUARANTEES FRICTIONLESS USED MACHINERY TRADING FOR MANUFACTURERS Problem statement Manufacturing companies operate old machinery and have operational, spatial and financing demands. Selling used machinery is often not part of their core business
Slide 88: Deal Rationale
Case Study | Industrial Goods DEAL RATIONALE TPG PROVIDES FINANCIAL STABILITY AND KNOW-HOW TO HELP GINDUMAC REACH ITS POTENTIAL Transaction facts Shareholder’s selling rationale TPG’s investment thesis Type Majority (50.1%) Joining forces with a partner that believes in the Entry into the used machi
Slide 89: TPG's Value Creation
Case Study | Industrial Goods TPG’S VALUE CREATION ORGANIZATIONAL OPTIMIZATION AND LEVERAGE OF SYNERGIES FORM AN ENDURING PLAYER Improvement measures Added value Next steps Full integration of TPG platform software and Reduction of overall cost levels due to centralization of Entry into new markets
Slide 90: TPG's Value Creation
Case Study | Industrial Goods TPG’S VALUE CREATION ENTRY IN THE SEGMENT OF WOOD MACHINES: ACQUISITON OF WEHRMANN 11.06.2024 Key facts 80 year company history Strong track record in wood machine trading and online- channels Solid financials for long period High technical skills in niche segment of ma
Slide 91: Highlights
Case Study | Industrial Goods HIGHLIGHTS SUCCESSFUL DEVELOPMENT WITH TPG’S POST-MERGER APPROACH Partners GMV (in € m) Revenue (in € m) 30 500 40 22 26 200 100 10 6 pre-TPG 2023 2024e pre-TPG 2023 2024e pre-TPG 2023 2024e EBITDA-Margin (in %) Machines on platform 4,6% 7.080 3,0% 4.230 1,7% 2.340 pre-
Slide 92: Case Study 2: Möbelfirst
Case Study 2: Möbelfirst 92
Slide 93: In a Nutshell
Case Study | Freight Goods IN A NUTSHELL THE PREFERRED PARTNER FOR ONLINE SALE OF LUXURY SECONDHAND FURNITURE Notable facts 2016 Bonn 15 Luxury in furniture and service Foundation Headquarter Employees in 2024 Selected product groups 10% B2B/ B2C 1500 EBITDA Margin Customers Brands in 2023 (2024e) €
Slide 94: Historical Development and Management Team
Case Study | Freight Goods HISTORICAL DEVELOPMENT AND MANAGEMENT TEAM TOGETHER WITH TPG, THE FOUNDERS BUILT A PROFITABLE NISCHE LUXURY FURNITURE PLATFORM Company milestones 2016 Foundation of MöbelFirst, which transfers the idea of a luxury furniture platform to the digital age 2018 Möbelfirst succe
Slide 95: Business Model
Case Study | Freight Goods BUSINESS MODEL MÖBELFIRST ADDRESSES ITS PRODUCTS TO ONLY 5% OF CUSTOMERS (INCOME >150K/YEAR) Business model Stakeholder relationship Why MöbelFirst is important Brick and mortar retailers, luxury furniture manufacturers and online retailers have trouble to sell their secon
Slide 96: Deal Rationale
Case Study | Freight Goods DEAL RATIONALE TPG HAS ALL RESOURCES AND SKILLS THAT ALLOW MÖBELFIRST TO FOCUS ON ITS CUSTOMERS Consolidation of shareholder group at attractive valuation for sellers Acquisition of a like-minded partner that supports growth strategy Ability to leverage cost synergies and
Slide 97: Value Creation
Case Study | Freight Goods VALUE CREATION PROCESS OPTIMIZATION AND NETWORK EFFECTS SECURE MÖBELFIRST’S SUSTAINABLE GROWTH Internalization of supporting departments and Scaling of existing business and product processes at the TPG holding offering based on TPG’s strong software platform Reduction of
Slide 98: Highlights
Case Study | Freight Goods HIGHLIGHTS TPG POST-MERGER APPROACH AS A VALUE DRIVER FOR MÖBELFIRST PARTNERS GMV (in € m) REVENUE (in € m) 520 6,6 5,0 410 5,2 4,0 2,7 195 2,1 pre-TPG 2023 2024e pre-TPG 2023 2024e pre-TPG 2023 2024e EBITDA-MARGIN (in %) AVERAGE ORDER VALUE (in €) 4.200,0 3.940,0 10,2 8,9
Slide 99: Case Study 3: Fashionette
Case Study 3: Fashionette 99
Slide 100: At First Sight
Case Study | Consumer Goods AT FIRST SIGHT THE PLACE TO GO WHEN IT COMES TO LUXURY AND PREMIUM FASHION AND ACCESSORIES NOTABLE FACTS SELECTED BRANDS WHAT OUR CUSTOMERS SAY 2008 Düsseldorf “I always have the best experiences with "fashionette": easy ordering as a guest, purchase on account, lightning
Slide 101: Historical Development and Management Team
Case Study | Consumer Goods HISTORICAL DEVELOPMENT AND MANAGEMENT TEAM EXPERTS IN E-COMMERCE BUILD THE LEADING EUROPEAN LUXURY RETAIL PLATFORM Stefan Miebach Laura Vogelsang COO Fashionette MANAGEMENT BOARD MEMBER With fashionette since 2024 With fashionette since 2018 Responsible for IT, software,
Slide 102: Hybrid Business Model
Case Study | Consumer Goods HYBRID BUSINESS MODEL SIMULTANEOUS OPERATION OF ONLINE RETAIL AND E-COMMERCE PLATFORM BUSINESS ONLINE RETAIL BUSINESS E-COMMERCE PLATFORM BUSINESS SUPPLIERS RETAILER CUSTOMERS CUSTOMERS PLATFORM PARTNERS BOUTIQUES BRANDS B2C B2C BRANDS ORIGIN NEXT LEVEL fashionette starte
Slide 103: Luxury Goods Market
Case Study | Consumer Goods LUXURY GOODS MARKET THE REGIONAL AND GLOBAL LUXURY GOODS MARKET MAINTAINS A POSITIVE TRAJECTORY fashionette SALES SPLIT 2024e GSA LUXURY GOODS MARKET MARKET DYNAMICS per region in % DEVELOPMENT in € bn GLOBALLY INCREASING ADRESSABLE MARKET Growth in the total number of gl
Slide 104: Deal Rationale
Case Study | Consumer Goods DEAL RATIONALE TPG SEIZED THE OPPORTUNITY TO INVEST WITH A CLEAR VISION FOR PLATFORM GROWTH TRANSACTION FACTS SHAREHOLDER’S SELLING RATIONALE TPG’s INVESTMENT THESIS TYPE Minority (38.5%) 12/2022 / majority GENUI, a private equity investor and Acquisition opportunity of a
Slide 105: Value Creation
Case Study | Consumer Goods VALUE CREATION TWO-WAY VALUE CREATION APPROACH THAT IMPROVES THE ENTIRE PLATFORM GROUP IMPROVEMENT MEASURES ADDED VALUE NEXT LEVEL Establishment of a platform business model Quick implementation of TPG’s software to Further expansion of TPG’s platform approach alongside t
Slide 106: Highlights
Case Study | Consumer Goods HIGHLIGHTS FROM PURE ECOMMERCE WITH LOSSES TO PLATFORM WITH PROFITS PARTNERS REVENUE (in € m) INVENTORY (in € m) 410 Excl. Brandfield, Continuing operations 54,0 123,0 284 94,0 platform 34,0 26,0 ecommerce 0 pre-TPG 2023 2024e pre-TPG (2021) 2024e pre-TPG 2023 2024e Adj.
Slide 107: Our software as a competitive advantage
5 THE PLATFORM GROUP Our software as a competitive advantage 107
Slide 108: Our Development History
TPG | Software Development OUR DEVELOPMENT HISTORY TPG ONE Start of TPG ONE – one ERP for all subsidiaries with full integration of • Headless M-A-C-H Architecture Second Generation TPG ERP • B2B data Project „Phoenix“ PIM • Ai Search / Launch 2021 and Rollout 2022 • Recommendations • Marketing inte
Slide 109: Competitive Development
TPG | Software Development COMPETITIVE DEVELOPMENT UTILIZING RESOURCES AND EXPERTISE FROM IN- AND OUTSIDE Competitive Software Development refers to strategies and approaches aimed at designing and managing software development processes to be highly competitive and successful in the marketplace. Th
Slide 110: Resources and Skill Overview
TPG | Software Development RESOURCES AND SKILL OVERVIEW STRONG DEVELOPMENT RESOURCES MULTIPLE LANGUAGES AND LOCATIONS Over 110 Experienced IT Employees Development in 5 Countries Skills Python C C++ Java C# JavaScript PHP Visual Basic Time to Connect a New Company Tools SQL Ruby 2-6 ColdeFusion week
Slide 111: Current TPG Architecture
TPG | Software Development CURRENT TPG ARCHITECTUR UTILIZING RESOURCES AND EXPERTISE FROM IN- AND OUTSIDE We provide online retailers and brick and mortar retailers the opportunity to sell their Ai products on multiple platforms and the biggest marketplaces. Currently retailers are Ex connected with
Slide 112: Retailer Benefits
TPG | Software Development RETAILER BENEFITS ONE CONNECTION TO ACCESS ALL TPG FRONTENDS + MARKETPLACES TPG RETAILER PORTAL Choose your integration mode via Shopsystem ... via API, FTP, EDI via ERP, PIM or Retailer Portals ... via File or manual AI-Powered Product Order & Retourn enrichment & Catalog
Slide 113: TPG ONE
TPG | Software Development TPG ONE OUR NEW TPG ARCHITECTUR SETUP Ai Ai Ai Ai Source(s): Company information 113
Slide 114: The Platform Group
S THE PLATFORM GROUP