Platform Group SE & Co. KGaA · XETR:TPG0
Platform Group SE & Co. KGaA — fashionette — FY2020 Earnings Presentation
27 slides from Platform Group SE & Co. KGaA's earnings presentation, 2021
Slide 1: FY 2020 Results
fashionette” —— FY 2020 RESULTS ———
Slide 2: Agenda
AGENDA • Business Update • Financial Update • Q&A 2
Slide 3: 2020 FY results exceeded ambitious targets – confirmed profitable growth outlook accelerated by acquisition
2020 FY RESULTS EXCEEDED AMBITIOUS TARGETS – CONFIRMED PROFITABLE GROWTH OUTLOOK ACCELERATED BY ACQUISITION € 94.8m Net Revenue resulting in +30% YoY growth € 8.9m adjusted EBITDA (+25% YoY) leading to 9.4% adjusted EBITDA Margin € € 4.6m Free Cash Flow demonstrating strong cash conversion 357k acti
Slide 4: Selective Highlights 2020
SELECTIVE HIGHLIGHTS 2020 40m 82% 608k Site visits Mobile traffic share Orders (+46% YoY) of site visits (+46% YoY) 4.8/5 68% 24% Excellent Proportion of Own brands share customer ratings* female employees of jewelry Net Revenue * www.trustpilot.de, December 2020 4
Slide 5: Strong net revenue growth in core region DACH and acceleration in new countries
STRONG NET REVENUE GROWTH IN CORE REGION DACH* AND CONTINUED ACCELERATION OF GROWTH IN NEW COUNTRIES… TOTAL NET REVENUE DACH* NET REVENUE € 80.7m € 94.8m € 64.9m € 59.1m +25.1% € 73.1m +9.8% € 65.2m 2018 2019 2020 +29.6% NON-DACH** NET REVENUE € 14.1m +12.1% € 8.2m € 6.1m +71.9% +35.2% 2018 2019 202
Slide 6: Growth of active and new customers leading to attractive cohort development
…DRIVEN BY EXCITING GROWTH OF ACTIVE & NEW CUSTOMERS LEADING TO A VERY ATTRACTIVE COHORT DEVELOPEMENT Lifetime Year: New Customers 1-2 3-4 >4 NEW CUSTOMERS ORDER VALUE PER CUSTOMER LIFECYCLE GROUP 240k € 160m 139k 147k € 140m +63.3% € 120m +5.8% € 100m 2018 2019 2020 € 80m ACTIVE CUSTOMERS 357k € 60
Slide 7: Handbags are just the starting point for cross-selling opportunities
HANDBAGS ARE JUST THE STARTING POINT FOR CROSS -SELLING OPPORTUNITIES 100% Women who have bought a designer handbag are very likely to shop in adjacent 76% FASHION ACCESSORY CATEGORIES. 73% Market research shows: 66% 76% of all women who have bought a designer handbag during the last two years also
Slide 8: Continued development of our selection in all categories
CONTINUED DEVELOPMENT OF OUR SELECTION IN ALL CATEGORIES… +214% 2019 2020 From an e-commerce retailer originally focused on handbags to a leading online +128% platform for premium and luxury fashion accessories: +122% 2019 2020 +59% SKUs 2019 2020 +37% BRANDS (November 2020 vs. November 2019) +93% 2
Slide 9: To foster our distinct positioning
…TO FOSTER OUR DISTINCT POSITIONING ENDORSING APPROACHABILITY Approachable We believe that General fashion retailer EVERY WOMAN should have the opportunity to live the Neutral lifestyle of her own choice – without any restrictions. That is why we want to make premium Luxury and luxury fashion access
Slide 10: Highly attractive market segments with growing online penetration driven by Generation Y&Z
HIGHLY ATTRACTIVE MARKET SEGMENTS WITH DYNAMICALLY GROWING ONLINE PENETRATION DRIVEN BY GENERATION Y&Z EU PREMIUM & LUXURY GOODS MARKET REVENUE GROWTH FORECAST MARKET TAILWINDS 17% % Online penetration in the premium & CAGR 2020-25F €13.2bn luxury goods market €11.8bn €10.1bn 12% 30% €8.5bn €8.3bn 2
Slide 11: Our strategic priorities do not change: focus on driving profitable growth
OUR STRATEGIC PRIORITIES DO NOT CHANGE: FOCUS ON DRIVING PROFITABLE GROWTH 1 SELECTION EXPANSION 2 REGIONAL EXPANSION 3 CONTINUED INVESTMENTS … WITHIN EXISTING CATEGORIES … WITHIN EXISTING COUNTRIES … IN OUR IT PLATFORM Increase selection by winning missing brands and Replicate the success of fashio
Slide 12: Our commitment to ESG
OUR COMMITMENT TO ESG ENVIRONMENT SOCIAL GOVERNANCE • Launch of 100% reusable FSC- and • Support of diversity and equal • Integrity, sense of responsibility RESY-certified packaging opportunities within corporate and transparency as main culture corporate values • Return rate (order quantity) declin
Slide 13: Agenda
AGENDA • Business Update • Financial Update • Q&A 13
Slide 14: Strong net revenue growth driven by increase of orders from new and active customers
STRONG NET REVENUE GROWTH DRIVEN BY A SIGNIFICANT INCREASE OF ORDERS FROM NEW AND ACTIVE CUSTOMERS TOTAL NET REVENUE ORDER QUANTITY € 94.8m € 73.1m 607,687 € 65.2m 417,478 379,132 +29.6% +45.8% +12.1% +10.1% 2018 2019 2020 2018 2019 2020 14
Slide 15: Improvement of return rate and strong average order value
IMPROVEMENT OF RETURN RATE AND STRONG AVERAGE ORDER VALUE DESPITE REVENUE MIX IMPACT FROM NEW CATEGORIES RETURN RATE (in % of Order Value) AVERAGE ORDER VALUE* 44.3% 43.6% € 309 € 306 40.6% € 261 -78 bps -0.9% -291 bps -14.9% 2018 2019 2020 2018 2019 2020 * Decreasing Average Order Value driven by s
Slide 16: Data driven marketing results in strong customer growth
DATA DRIVEN MARKETING RESULTS IN STRONG CUSTOMER GROWTH, DEMONSTARTING OPERATING LEVERAGE FROM EFFICIENCIES & SCALE MARKETING COST RATIO (in % of Order Value) CUSTOMER ACQUISITON COST 6.6% € 56.4 5.7% € 49.3 5.6% € 36.7 -94 bps -12.6% -10 bps -25.6% 2018 2019 2020 2018 2019 2020 16
Slide 17: Income statement reflects our focus on profitable growth
INCOME STATEMENT REFLECTS OUR FOCUS ON PROFITABLE GROWTH FY 2018 FY 2019 FY 2020 YoY (in % (inof Net % of NetRevenue) revenue) • Product category mix led to Gross Margin 41.8% 40.9% 39.6% -129 bps slightly lower gross margins (e.g. sunglasses and watches) Distribution Cost Ratio -11.4% -10.5% -11.6%
Slide 18: Strong EBITDA development results in a free cash flow of €4.6m
STRONG EBITDA DEVELOPMENT RESULTS IN A FREE CASH FLOW OF €4.6M € 0.3m € 8.9m € 2.7m • In accordance with local GAAP HGB, the goodwill generated in 2016 will be amortized linear over a period of € -1.4m € 6.5m 15 years. The amortization of € 5.9m € -1.0m approx. € 1.4m per annum has no effect on liqu
Slide 19: Improved trade working capital ratio and strong cash conversion
IMPROVED TRADE WORKING CAPITAL RATIO AND STRONG CASH CONVERSION CONFIRM OUR CAPITAL EFFICIENCY TRADE WORKING CAPITAL RATIO (in % of Net Revenue) FREE CASH FLOW / CASH CONVERSION (in % of adj. Net Profit) 117% 26.1% € 4.6m 23.3% 22.7% 60% -594% € 1.1m € -1.8m 2018 2019 2020 2018 2019 2020 19
Slide 20: Net cash position provides opportunity to invest in organic and inorganic growth
NET CASH POSITION PROVIDES OPPORTUNITY TO INVEST IN ORGANIC AND INORGANIC GROWTH OF OUR PLATFORM CASH BRIDGE FY 2020 € 33.6m € 31.8m € 4.6m € 0.03m € -6.3m Cash Position Free Cash Flow FX Effects Financing Cash Flow Cash Position Dec. 2019 Dec. 2020 20
Slide 21: Strategic acquisition of Brandfield to accelerate international profitable growth
STRATEGIC ACQUISITION OF BRANDFIELD TO ACCELERATE INTERNATIONAL PROFITABLE GROWTH Brandfield is a leading online retailer for premium fashion accessories based in Groningen, Netherlands Attractive financial profile with an expected Net Revenue of approx. € 40m and approx. € 2.8m EBITDA in FY 2021* N
Slide 22: Profitable growth outlook 2021 accelerated by strategic acquisition
PRO F IT ABLE G R O WT H OUT LOOK 2021 ACCELERAT ED BY STRATEGIC ACQUISITION PROFORMA 2021 VIEW: CONSOLIDATED GUIDANCE*: TOTAL NET REVENUE € 118m – € 123m Net Revenue € 118m – €123m Net Revenue € 42m – € 47m Net Revenue € 23m – € 27m Net Revenue Ʃ € 160m – € 170m Net Revenue € 141m – € 150m Net Reve
Slide 23: Agenda
AGENDA • Business Update • Financial Update • Q&A 23
Slide 24: fashionette
fashionette® 2
Slide 25: KPI Definitions
KPI DEFINITIONS NET REVENUE Defined as gross revenue including dunning charges, marketing support less returns and credit notes. EBITDA Defined as earnings before interest, taxes, depreciation and amortization. ADJ. EBITDA Defined as earnings before interest, taxes, depreciation and amortization exc
Slide 26: Disclaimer and Notes
DISCLAIMER AND NOTES BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOLLOWING TERMS AND CONDITIONS REGARDING THE INFORMATION DISCLOSED IN THIS PRESENTATION. THIS PRESENTATION HAS BEEN PREPARED BY FASHIONETTE AG (THE "COMPANY"). This disclaimer shall apply in all respects to the entire pr
Slide 27: Thank You
THANK YOU fashionette®