Signa Sports United N.v. · OTC:SSUNF
Signa Sports United — SPAC Merger (June 2021)
45 slides from Signa Sports United's SPAC merger presentation, Jun 11, 2021
Slide 1: Leading Global Sports E-Commerce & Tech Platform
TM SIGNA SPORTS ‘UNITED e; y LEADING GLOBAL SPORTS E-COMMERCE & TECH PLATFORM % INVESTOR PRESENTATION June 2021
Slide 2: Confidentiality and Disclosures
Confidentiality and Disclosures This presentation (the “Presentation”) has been prepared by SIGNA Sports United GmbH (the “Company”) in connection with a possible business combination (a “Transaction”) involving the Company and a special purpose acquisition company (the “SPAC”). This presentation is
Slide 3: Forward-looking statements and risk factors
Achieving our business and financial objectives, including growth in operations and maintenance of a strong balance sheet and liquidity position, could be adversely affected by, among other things: • Our inability to effectively integrate our largest acquisition to date, Wiggle Group, to realize exp
Slide 4: Transaction overview
• On June 10, 2020, SIGNA Sports United (SSU), Yucaipa Acquisition Corporation and Wigglers (WCRC) entered into a business combination agreement • The transaction is expected to close in H2 2021 • Post-closing company will be listed on the NYSE • The combination of SSU and Wiggle represents an enter
Slide 5: Management team
Stephan Zell Philipp Roster Alex Johnstone Ira Torcher CEO CSO CFO COO & CFO of Yucaipa Acquisition Corporation 10+ years of TMT Senior Partner at The Yucaipa 20+ years digital / retail 15+ years digital / retail Investment Banking Companies experience experience experience 5 SIGNA SPORTS UNITED
Slide 6: Yucaipa and Ron Burkle
Ron Burke Widely followed Chairman with long track record of Chairman & CEO creating value in private and public companies • Founded The Yucaipa Companies (“Yucaipa”) in 1986 • Widely recognized as one of the pre-eminent investors Personal  intent to commitment from Ron Burkle as a PIPE in the
Slide 7: Investment highlights
Leading pure-play sports e-commerce & technology platform Playing in the fastest growing sports categories in $1.1TN market Very strong vertical specific expertise and assortment Scalable technology platform with compounding data advantage Strong growth, proven unit economics and expanding margins M
Slide 8: We empower entrepreneurs and businesses to lead sports in the digital age
OOS WE EMPOWER ENTREPRENEURS AND BUSIN TO LEAD SPORTS IN THE DIGITAL AGE.
Slide 9: Our businesses and brands
ProbikeShop
Slide 10: SSU at a glance
Global Sports Market Sports E-Commerce Net Revenues Revenue Adj. EBITDA 2020 CAGR 20-25E FY 2021E (1)(2)(3) CAGR 21E-25E (1)(3) (1)(3) FY 2021E Net revenue (FY 2021E) by market and category (%) (3) RoW US ClimatePartner.com/14421-2006-1001 5% 9% UK 19% 67% Europe Team Sports Tennis 7% 17% Outdoor 13
Slide 11: 1. Sports Market
1. SPORTS MARKET 2. HOW WE WIN 3. 11
Slide 12: Global sports market size and e-commerce penetration
Size Market $1.1TN (2) Global Sports Market 2020E $670BN Offline & Online Global Sports Retail Market 2025E $130BN Global Sports E-Commerce Industry 2025E $72BN Global Sports E-Commerce Industry 2020E 24% 31% Online Today 2025E Penetration Source: Company Information, Management estimates, third-par
Slide 13: E-bike growth
• SSU largest full bike e-trailer globally shipping c.300k+ p.a. units LTM (1) • SSU e-Bike division has >100% CAGR since 2015 ~130 • 30% of SSU e-Bike sales from exclusive SSU Own Brands ~20 Electric Cars Electric Bicycles Source: Deloitte Discover the Future Report 2020, Deloitte Electric Vehicles
Slide 14: Fastest growing sports categories
Team sports Biking Outdoor Racket Sports Fitness Golf Running Source: Management estimates, third-party research. Note: (1) Online and offline sports retail market. Select categories shown. 14
Slide 15: Leading positions in key categories
$880 #2 #3 #4 $230 1 #2 #3 #4 $220 #1 #3 #4 $110 #1 #2 #4 Source: Company information, Management estimates, third-party research. Note: SSU financial year end as of 30-Sep. Assumed EUR / USD of 1.2000. Includes WCRC, Midwest Sports and Tennis Express. WCRC subject to close concurrently with the SPA
Slide 16: Growth strategy
Leverage scale and superior capabilities Accelerate buy & build strategy to Grow high-margin platform and and differentiation to drive above consolidate highly fragmented market community’s businesses, further market organic growth in existing and and to enter new geographies and developing SSU’s sp
Slide 17: 2. How We Win
1. SPORTS MARKET 2. HOW WE WIN 3.FINANCIALS 4.TRANSACTION
Slide 18: Scalable technology platform
• Highly differentiated own e-commerce businesses • Full-Service e-Commerce solutions and Connected Retail • Connected digital sports apps, wearables and trackers Content Production • Proprietary and scalable Inventory Management tech stack leveraging broad sports Customer Payment Retail Service dat
Slide 19: Price positioning versus competitors
Source: Company information. Note: (1) Price of average SSU bikes versus average price of competitor bikes. 19 SIGNA SPORTS UNITED STRICTLY PRIVATE & CONFIDENTIAL
Slide 20: Product and brand showcase
Source: Company information. 20
Slide 21: Racket finder customer journey
Step 1: Complete the racket finder questionnaire long medium Short Step 2: Receive tailored recommendations Step 3: Full racket details and customizations Source: Company information. 21
Slide 22: Post-merger integration playbook
SSU post-merger integration playbook (1) Migration onto SSU Platform Joint Sourcing and inventory management (1) Joint Sales & Marketing and Pricing Streamlined operations and fulfillment Combined overhead and service functions Source: Company information. Note: (1) WCRC subject to close concurrentl
Slide 23: M&A investment criteria
SSU investment criteria following clear industry logic 2020A Net Revenue split (%) (2) 4% Combination of leading global players (1) 15% 7% Leading positions in key markets, especially U.S. Unique assets & capabilities, e.g. own brands 96% 58% Proven stand-alone profitable growth track 20% High syner
Slide 24: Consolidation opportunity
$13.7 $9.5 $8.8 $3.9 $1.6 >$500M $200-500M $100-200M <$100M 2021E 2025E #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 #15 #16 #18 Global Top-3 Sports Retailers Source: Company information. Note: SSU financial year end as of 30-Sep. Pro forma for WCRC, Midwest Sports and Tennis Express. WCRC subject to
Slide 25: Platform and service range
Retail media & data services C&C and endless-aisle 1-click commerce integration Online shop SaaS & fulfillment Marketplace (Offline->Online) (1) Sports activity engagement Service Range Entry Level Advanced Vertical generalist generalist specialist Source: Company information. Note: (1) Connected Re
Slide 26: Adjacent markets
Source: Company information. Note: (1) Fast-Moving Consumer Goods. 26
Slide 27: 3. Financials
1. SPORTS MARKET 2. HOW WE WIN 3.FINANCIAL 4.TRANSACTION
Slide 28: Key performance indicators
12.0% 16.0% 20.6% 29.6% (m, YoY Growth in %) 178.7 207.4 250.2 126.3 FY2018A FY2019A FY2020A H1 FY2021A (YoY growth in %) +28% 7.0 0.3 12.9 21.3 2.05% 2.05% 2.18% 2.29% (in %, YoY Change in bps) FY2018A FY2019A FY2020A H1 FY2021A - 1.0% 3.2% 8.3% $116.4 $117.5 $121.3 $122.9 ($, YoY Growth in %) FY 2
Slide 29: Cohorts and revenue retention
(%) – Actuals LTM December 96% 90% 90% 83% 58% 48% 53% 53% 2017 2018 2019 2020 2017 2018 2019 2020 Cohorts prior 2016 Cohort 2016 Cohort 2017 Revenue retention all cohorts Cohort 2018 Cohort 2019 Cohort 2020 Revenue retention cohorts older than 1+ years Source: Company information. Note: All KPIs ex
Slide 30: Revenue, gross profit and Adj. EBITDA
$1,621 ($m) $1,039 $849 $644 FY 2019A FY 2020A FY 2021E FY 2021E $596 ($m) $388 $310 $222 FY 2019A FY 2020A FY 2021E FY 2021E Margin 34.5% 36.5% 37.3% 36.8% + 240 bps + 140 bps ($m, YoY margin growth in bps) $70 $37 $19 FY 2019A FY 2020A FY 2021E FY 2021E Margin (0.2%) 2.2% 3.6% 4.3% Source: Company
Slide 31: Net revenue forecast FY2021E-FY2025E
$3,926 $621 $3,090 $350 $2,455 $183 $1,955 $55 $1,621 $19 $3,305 $2,740 $2,272 $1,900 $1,602 FY 2021E FY 2022E FY 2023E FY 2024E FY 2025E E-Commerce (2) Platform (3) Source: Company information. Note: SSU financial year end as of 30-Sep. Assumed EUR / USD of 1.2000. Pro-forma including full year WCR
Slide 32: Margin development and long-term targets
FY 2020A (1) FY 2021E (2) Long Term E-Commerce Dynamic pricing Gross Margin 36.2% 36.5% 37—39%Improving wholesale economics Private label share Personnel (10.2%) (9.7%) (8)—(10)% Increased automation Logistics (10.0%) (10.0%) (9)% Growing cohorts of repeat customers Marketing (7.0%) (
Slide 33: Bike & Outdoor segment
FY 2020A H1 2021A FY 2020A H1 2021A Revenue Growth (y-o-y, %) Less penetrated markets Gross Profit Investing to win share Margin (%) Margin development with scale in market EBITDA Margin (%) Source: Management accounts, SSU Standalone Bike & Outdoor Segment. 33
Slide 34: 4. Transaction
1. SPORTS MARKET 2. HOW WE WIN 34
Slide 35: Transaction summary, sources and uses
¼ Values the combined SSU and Wiggle at ~$3.2BN  Existing SSU shareholders to rollover 100% of their shares WCRC Shareholders, 4.2% SPAC Sponsor, 3.0%  ~$300M PIPE, of which $50M committed by Yucaipa sponsor Ron Burke PIPE, 9.0% SPAC, 10.3% Sources $M €M % Pro Forma Equity $2,716 €2,254 80.8%
Slide 36: Growth and margin benchmarking versus peers
34% 28% 25% 25% SSU (1) E-Commerce (1P) Marketplaces (3P) SaaS CAGR ‘21E-‘25E Long-term 74% 37 – 39% 55% target 44% 36% SSU E-Commerce (1P) Marketplaces (3P) SaaS 12—15% Long-term 30% target 5% 10% 5% SSU E-Commerce (1P) Marketplaces (3P) SaaS Source: Company Business Plan, Fact Set. Market data as
Slide 37: Valuation multiples versus peers
14.4x 6.7x 3.1x 1.6x SSU E-Commerce (1P) Marketplaces (3P) SaaS 0.46x 0.20x 0.11x 0.07x SSU E-Commerce (1P) Marketplaces (3P) SaaS 9.0x 19.7x 7.6x 4.5x SSU E-Commerce (1P) Marketplaces (3P) SaaS Source: Company Business Plan, Fact Set. Market data as of Jun-2021. Note: All financials calendared to Y
Slide 38: Investment highlights
Leading pure-play sports e-commerce & technology platform Playing in the fastest growing sports categories in $1.1TN market Very strong vertical specific expertise and assortment Scalable technology platform with compounding data advantage Strong growth, proven unit economics and expanding margins M
Slide 39: Appendix
APPENDIX 39
Slide 40: Management team
Stephan Thomas Philipp Alex Stefanie Simone Droit Zell Neumann Roster Johnstone Kneepan Kerrey Schindler CEO CTO CSO CFO Finance Director Chief of Staff Chief People Officer Christian Sasha Hans Olivier Dominic Philipp Tillman Mile Beyer Dorman Rocha Hoffmann Marcher Wink Founder & MD MD MD Founder
Slide 41: Peer set descriptions
• Key peer set with similar business • Marketplaces operating via • Leaders in plug & play technology model: inventory carrying model transaction fee driven business solutions, platforms and SaaS with similar business dynamics / model represent closest peers to SSU’s financial profile, importance of
Slide 42: Peer operating benchmarks
2020-2022E 2022E Gross Margin 2022E EBITDA Margin Revenue CAGR 25%(1) 36% 37—39%+ Long-Term Target 5% 12—15% Long-Term Target Median: 25% Median: 44% Median: 5% 28% 16% — 33% 45% 10% 27% 23% 3% (1P) 26% 27% 3% Commerce 24% 46% 7% E—43% 7% 25% 18% 45% 4% 22% 54% 12% Median: 34% Median: 55% Median: 30
Slide 43: Peer valuation multiples
Firm Value / Firm Value / Firm Value / Firm Value 2022E Revenue 2022E Growth Adj. Revenue 2022E Gross Profit Median: 3.1x Median: 0.11x Median: 7.6x $3,836m 1.5x 0.05x 8.9x $11,753m 3.1x 0.10x 6.9x $3,343m 1.9x 0.07x 8.3x $33,880m 3.3x 0.13x 12.2x Commerce(1P) $2,630m 3.2x 0.13x 7.0x - E $30,542m 2.
Slide 44: Adjusted EBITDA reconciliation
EUR million FY 2019A FY 2020A Loss for the period (35.9) (25.7) (+) Results from investments accounted for at equity 0.0 0.7 1 Transaction costs from qualifying acquisition transactions or subsequent integration related (+) Finance costs 7.4 8.7 project costs directly associated with an acquired (-)
Slide 45: Thank you
THANK YOU 45