Signa Sports United N.v. · OTC:SSUNF
Signa Sports United — FY2022 Earnings Presentation
33 slides from Signa Sports United's earnings presentation, Feb 7, 2023
Slide 1: FY22 Earnings Presentation
Slide 2: Disclaimer
Disclaimer SIGNA SPORTS UNITED 2 These forward-looking statements include, but are not limited to, statements regarding future events, the estimated or anticipated future results and benefits of SSU following the business combination, future opportunities for SSU, future planned products and service
Slide 3: Agenda
Agenda 01. Financial Update 02. commercial change 03. outlook Appendix SIGNA SPORTS UNITED 3
Slide 4: Consolidated positions in most significant sports retail markets
Source: Company information. Note: Core markets represent markets with inventory held in-country. FY19 metrics restated for continuing operations only, as a result of discontinued operations related to Athleisure, pro forma for WCRC, Midwest Sports and Tennis Express. (1) SSU financial year end as o
Slide 5: Challenging environment – focus on core markets
SIGNA SPORTS UNITED 5 challenging Environment – focus on core markets SSU is a buy-and-build strategy; the assets that we have acquired typically operate from a scaled logistics infrastructure serving markets internationally Our businesses are characterized by market-leading positions in core market
Slide 6: Defined near-term plan to adapt the operating model and return to profitability
Defined near-term plan to adapt the operating model and return the business to profitability Comprehensive assessment of long-term strategy Actions Taken to Respond to Challenging Market in the next 12-18 months SIGNA SPORTS UNITED 6 Cost initiatives Trade Working Capital Financial Flexibility Strat
Slide 7: Financial Update
01. Financial update 02. commercial change 03. Outlook APPENDIX Financial Update
Slide 8: Operating in adverse market conditions
FY20 FY21 FY22 Operating in adverse market conditions SIGNA SPORTS UNITED 8 SUPPLY CHALLENGES EASING AS DEMAND DETERIORATED WITH INFLATION SPIKE GLOBAL SUPPLY CHAIN PRESSURE INDEX EU CONSUMER CONFIDENCE INDEX Source: Factset as of December 31, 2022 1.2 (22.2) LEGACY SSU NET REVENUE ORGANIC YOY GROWT
Slide 9: Q4 FY22 & FY22 operating performance: gaining scale in challenging conditions
Q4 FY22 & FY22 OPERATING PERFORMANCE: gaining scale in challenging conditions SIGNA SPORTS UNITED 9 ACTIVE CUSTOMERS (M) Source: Company information. Note: Pro forma metrics include the impact of Midwest Sports, WiggleCRC and Tennis Express acquisitions, assuming ownership for the entire period. For
Slide 10: Q4 FY22 & FY22 financial performance impacted by macro challenges
FY21 FY22 YoY PF YoY Q4 FY22 & FY22 financial PERFORMANCE impacted by macro challenges SIGNA SPORTS UNITED 10 NET REVENUE Note: Pro forma metrics include the impact of Midwest Sports, WiggleCRC and Tennis Express acquisitions, assuming ownership for the entire period. Metrics are presented for conti
Slide 11: Operating cost overview
Operating Cost overview SIGNA SPORTS UNITED ADJUSTED EBITDA MARGIN BRIDGE 11 Note: Metrics are presented for continuing operations only, as a result of the discontinued operations related to Athleisure. Refer to Note 11- Discontinued Operations. Metrics are presented on a Non-GAAP basis. (1) For mor
Slide 12: Free cash flow impacted by operating conditions
Free cash flow impacted by operating conditions SIGNA SPORTS UNITED 12 Note: Metrics are presented for continuing operations only, as a result of the discontinued operations related to Athleisure. Refer to Note 11- Discontinued Operations. Metrics are presented on a Non-GAAP basis. Cash flow from Co
Slide 13: Inventory levels impacted by the conflict in Ukraine
Inventory levels impacted by the conflict in Ukraine, which strongly affected consumer confidence at the start of peak season in March FY22 Significant delays of inbound orders (several months) due to supply chain challenges reversed quicker than expected Highly promotional environment in H2 FY22 as
Slide 14: Balance sheet commitments provide flexibility to execute plans
balance sheet commitments provide flexibility to execute plans SIGNA SPORTS UNITED 14 Source: Company information. (1): Refer to Note 7.14 - Non-current Financial Liabilities. (2): The Company has entered into a €50M revolving credit facility with SIGNA Holding GmbH an affiliate of its largest share
Slide 15: Commercial change
01. Financial update 02. commercial change 03. Outlook APPENDIX Commercial change
Slide 16: Track record of growth in core & international markets
Track record of growth in core & international markets 16 PF Revenue: geographic Evolution Note: Pro forma metrics include the impact of Midwest Sports, WiggleCRC and Tennis Express acquisitions, assuming ownership for the entire period. Metrics are presented for continuing operations only, as a res
Slide 17: Focused plan to return to run rate profitability in FY24 (1/2)
SIGNA SPORTS UNITED 17 focused plan to return the business to run rate profitability* in FY24 (1/2) * On an Adj. EBITDA basis for FY24 Deliver transaction synergies 03 Adapt commercial and operating models 02 Focus on core markets 01
Slide 18: Focused plan to return to run rate profitability in FY24 (2/2)
SIGNA SPORTS UNITED 18 focused plan to return the business to run rate profitability* in FY24 (2/2) Focus area Alter positioning outside of core markets Optimize pricing and service levels for contribution Refocus international partnerships Scale back international partnerships Pause international l
Slide 19: Impact of changes to operating approach in FY23
SIGNA SPORTS UNITED 19 Impact of Changes to Operating Approach in Fy23 Focus on core markets and changes in the commercial model to result in lower sales, particularly in international markets, but sales to be at a higher contribution Significant gross margin contraction expected through H1 FY23 to
Slide 20: Outlook
outlook 01. Financial Update 02. commercial change 03. Outlook APPENDIX
Slide 21: Megatrends gaining further momentum
C-19 Growth SIGNA SPORTS UNITED 21 Source: Company information, Wall Street research MEGATRENDS GLOBAL ONLINE RETAIL PENETRATION (2007-2026) SSU Equity Story MORE RELEVANT THAN EVER LONGEVITY / HEALTHY LIFESTYLE E-MOBILITY & GREEN OFFLINE TO ONLINE SHIFT SPORTS DIGITALIZATION MEGATRENDS GAINING FURT
Slide 22: SSU strongly positioned to create value through M&A
SIGNA SPORTS UNITED 22 CUSTOMEREXPERIENCE FULFILMENT SPECIALISTSERVICES Data / RMS SSU is the only e-tailer in our categories with reach across Europe and NAM and the infrastructure to pursue such a buy-and-build strategy The current market dislocation has created attractive M&A opportunities Highly
Slide 23: Near-term challenges accelerate long-term opportunity
Near-term challenges accelerate long-term opportunity SIGNA SPORTS UNITED 23 Intact structural megatrends behind online specialist sports retail Market dislocation is accelerating industry consolidation Strategic realignment to increase SSU’s competitiveness for sustainable and profitable growth Tar
Slide 24: Appendix
APPENDIX 01. Financial Update 02. Commercial change 03. Outlook APPENDIX
Slide 25: SSU commitment to sustainability
SSU commitment to sustainability SIGNA SPORTS UNITED 25 Note: (1) SIGNA Sports United ESG report available on https://investor.signa-sportsunited.com/esg/ FY22: defining SSU’s sustainability guidelines 1st SSU ESG report released in FY22 Understand and contain carbon footprint Improve sustainable pr
Slide 26: Key performance indicators
Key performance indicators SIGNA SPORTS UNITED 26 Source: Company information. Note: SSU (Reported View) excludes the impact of WiggleCRC, Tennis Express acquisitions until Q2 FY22. Midwest Sports included from 09-May-2021. Pro forma metrics include the impact of Midwest Sports, WiggleCRC and Tennis
Slide 27: Customer base impacted by softening macro conditions
customer base impacted by softening macro conditions SIGNA SPORTS UNITED 27 Source: Company information. Note: Customer retention data represents SSU Group pro forma, excluding data from Tennis Express, Outfitter Team sports and Discontinued operations.(1) Revenue Retention excl. Tennis Express, Out
Slide 28: Reconciliation of reported P&L at current scope
Reconciliation of Reported P&L at current scope SIGNA SPORTS UNITED 28 Source: Company information. Note: Discontinued operations related to Athleisure. Refer to Note 11- Discontinued Operations. For more information on the definitions, please see the Defined Terms page in the Appendix. Metrics are
Slide 29: Reconciliation of pro forma P&L at current scope
Reconciliation of pro forma P&L at current scope SIGNA SPORTS UNITED 29 Source: Company information. Note: Pro forma metrics include the impact of Midwest Sports, WiggleCRC and Tennis Express acquisitions, assuming ownership for the entire period. SSU (excl. Discontinued operations) metrics are pres
Slide 30: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA SIGNA SPORTS UNITED 30 Note: All metrics exclude the impact of Tennis Express and WiggleCRC acquisitions. Midwest Sports contribution included from May 1, 21. Metrics are presented for continuing operations only, as a result of the discontinued operations related to
Slide 31: SSU financial position as of FY22 and cap table
SSU FINANCIAL POSITION AS OF FY22 SIGNA SPORTS UNITED 31 CAP TABLE(1) Source: Company information. Note: For further information on terms of warrants, see SEC F-1 filing as of Dec 23, 2021. (1): Excludes 51.0M earnout shares issuable to SISH upon meeting certain share price targets. Earnout shares a
Slide 32: Defined Terms
Defined Terms SIGNA SPORTS UNITED 32
Slide 33: Thank you
THANK YOU SIGNA SPORTS UNITED 33 SSU Investor Relations https://investor.signa-sportsunited.com SSU Investors Contact Alima Levy a.levy@signa-sportsunited.com +49 174 7304938