Birkenstock Holding Plc · NYSE:BIRK
Birkenstock — IPO Roadshow (October 2023)
35 slides from Birkenstock's IPO roadshow presentation, October 2023
Slide 1: Investor Information October 2023
BIRKENSTOCK OCTOBER 2023 INVESTOR INFORMATION i) BIRK
Slide 2: Important notice
This presentation (the “Presentation”) has been prepared by Birkenstock Holding Limited (“we,” “us,” “Birkenstock” or the “Company”) and is being furnished solely for use by the recipient in making its own evaluation of the Company and its business, assets, financial condition and prospects. We have
Slide 3: Trademarks and Forward-Looking Statements
Trademarks and Service Marks This Presentation includes our trademarks, such as “BIRKENSTOCK,” which are protected under applicable intellectual property laws and are the property of the Company. This Presentation also contains trademarks, service marks, trade names and copyrights of other companies
Slide 4: Offering Summary
BIRKENSTOCK: OFFERING SUMMARY ISSUER Birkenstock Holding ple TICKER | EXCHANGE BIRK | NYSE BASE OFFERING SIZE 32,258,064 shares | $1.5bn (33% primary | 67% secondary) OVER-ALLOTMENT OPTION 15% | 4,838,709 shares (100% secondary) To repay ~€100 million of the Vendor Loan and ~€313 million in aggregat
Slide 5: Presentation Investor Information
BIRKENSTOCK: PRESENTATION INVESTOR INFORMATION
Slide 6: Management team
CHIEF EXECUTIVE CHIEF FINANCIAL VP GLOBAL FINANCE CHIEF PRODUCT CHIEF SALES OFFICER CHIEF TECHNICAL MANAGING DIRECTOR PRESIDENT EUROPE PRESIDENT AMERICAS OFFICER (CEO) OFFICER (CFO) OFFICER (CPO) (CSO) OPERATIONS OFFICER GREATER CHINA (CTOO)
Slide 7: Birkenstock at a glance
• • • • • • • Note: 1 Consumer survey as of May 2023 2 FY14-22; 3 Adjusted Gross Margin and Adjusted EBITDA Margin are non-IFRS measures. Please see the appendix for a reconciliation of each non-IFRS measure to its most closely comparable IFRS measure.
Slide 8: 1. Product
BIRKENSTOCK 1. BIRKENSTOCK PRODUCT BIRKENSTOCKINVESTOR INFORMATION | 1. PRODUCT
Slide 9: Our footbed is the platform for product creation, innovation and growth
BIRKENSTOCK OUR FOOTBED IS THE PLATFORM FOR PRODUCT CREATION, INNOVATION AND GROWTH & %\ — BIRKENSTOCKINVESTOR INFORMATION | 1. PRODUCT
Slide 10: One-of-a-kind product archive
BIRKENSTOCK BASED ON OUR FOOTBED WE HAVE BUILT A ONE-OF-A-KIND PRODUCT ARCHIVE 700+ PRODUCT SILHOUETTES PROVEN ROADMAP OF “CELEBRATE & BUILD” THE arcHive BIRKENSTOCKINVESTOR INFORMATION | 1. PRODUCT B® SOP FE Se 10
Slide 11: Balance between strong core silhouettes and new additions
BIRKENSTOCK WE HAVE CREATED A HEALTHY BALANCE BETWEEN STRONG CORE SILHOUETTES AND NEW ADDITIONS TO THE ARCHIVE Core Silhouettes 9 of the top 20 support silhouettes in predictable, 2022 have : <- recurring zie Boston (1976) been created reat baad Arizona (1973) revenues since 2017”) 2 7 an ~75% of FY
Slide 12: Case study: Celebrating the Arizona
BIRKENSTOCK THE ARIZONA DEMONSTRATES THE EFFECTIVENESS OF OUR APPROACH CASE STUDY: CELEBRATING THE ARIZONA uf@is, <= afie He EVA Birkoflor Oiled Leather Big Buckle Oiled Leather (RSP: £50) (RSP: €80) (RSP: €110) (RSP: £140) a > Se ae J Tay ~~ Big Buckle Teddy Bold Buckle Shearling 1774, Manolo Blahn
Slide 13: Significant white space growth potential
BIRKENSTOCK SIGNIFICANT WHITE SPACE GROWTH POTENTIAL ACROSS OUR ENTIRE PRODUCT PORTFOLIO ACCESSORIES, PAPILLIO, ORTHOPEDICS SHOES, ACTIVE EVA, SHOECARE, SKINCARE CLASSIC & PROFESSIONAL OUTDOOR, HOME & KIDS 1774 & COLLABS & SLEEPING SYSTEMS Backbone Functional DNA Expansionary Premium Diversification
Slide 14: 2. Birkenstock 1774
BIRKENSTOCK 2, BIRKENSTOCK 7” 1774 ~~ Se - BIRKENSTOCK INVESTOR INFORMATION | 2. BIRKENSTOCK 174
Slide 15: 1774 Paris office generates buzz and business in high price product fields
BIRKENSTOCK OUR 1774 PARIS OFFICE GENERATES BUZZ & BUSINESS IN HIGH PRICE PRODUCT FIELDS, VIA TACTICAL COLLABORATIONS AND THE 1774 INLINE COLLECTION if Ww BIRKENSTOCK 1774 OFFICE, PARIS : oat ake : |. wiexrinio DIOR Hie MANOLO BLAHNIK FEAR OF GOD 032c Gaich Civerss ITIES yay ILDOLCEFARNIENTE «RANDOM
Slide 16: Purpose-led product lineup disrupts the luxury footwear market
BIRKENSTOCK OUR PURPOSE-LED PRODUCT LINEUP DISRUPTS THE LUXURY FOOTWEAR MARKET AND REINVENTS THE PRINCIPLES OF THIS INDUSTRY GAIN SHARE OF THE LUXURY SHOE MARKET STRENGTHEN OUR BRAND POWER FUEL INNOVATION + Enhance our luxury brand perception * Strategic activation events * Inspire product innovatio
Slide 17: Unique collaborations have significant impact on brand perception
BIRKENSTOCK BEYOND PROOF OF CONCEPT: UNIQUE COLLABORATIONS HAVE SIGNIFICANT IMPACT ON BRAND PERCEPTION AND NEW BUSINESS FIELDS MANOLO BLAHNIK BIRKENSTOCK INVESTOR INFORMATION | 2. BIRKENSTOCK 1774
Slide 18: 3. Engineered Distribution
BIRKENSTOCK 3. ENGINEERED DISTRIBUTION BIRKENSTOCKINVESTOR INFORMATION | 3, ENGINEERED DISTRIBUTION
Slide 19: Global distribution engineered to maximize EBITDA and ensure relative scarcity
BIRKENSTOCK OUR GLOBAL DISTRIBUTION HAS BEEN CONSTANTLY ENGINEERED TO MAXIMIZE EBITDA AND ENSURE RELATIVE SCARCITY CONTEXT OUR ENGINEERED DISTRIBUTION FORMULA RESULTS Since 2012 we have Market pTc Premium Superior ASP growth (16% CAGR between constantly “suffered” Takeovers Expansion Product FY20-22
Slide 20: Revenue by segment, channel and region
Note: all data as of FY22; Sum of segments above will not sum up to Group revenue as Corporate / Other revenue not presented
Slide 21: 4. Vertically Integrated Manufacturing
BIRKENSTOCK 4, VERTICALLY INTEGRATED MANUFACTURING BIRKENSTOCKINVESTOR INFORMATION | 4. VERTICALLY INTEGRATED MANUFACTURING
Slide 22: Long term relationships with key suppliers
LONG TERM SKILLED WORKERS AND PRODUCTION IN 7 OWN FINAL ASSEMBLY DONE IN GLOBALLY PRESENT OF OUR FOOTBEDS ARE RELATIONSHIPS WITH EXPANDING 1 AND OPERATED GERMANY 1 DISTRIBUTION NETWORK MADE IN GERMANY 1 KEY SUPPLIERS MANUFACTURING 90+% FROM EU 1 SITES 2 Note: 1 During 2022; 2 As of September 2023
Slide 23: Pasewalk, Görlitz and Arouca manufacturing sites
PASEWALK, GERMANY GÖRLITZ, GERMANY AROUCA, PORTUGAL NEW FACTORY WENT LIVE SEPT. 2023 MASSIVE EXPANSION OF CORE PRODUCTION EXPANSION OF NEW COMPONENT CAPABILITIES
Slide 24: 5. Financial Overview
BIRKENSTOCK: 9. FINANCIAL OVERVIEW BIRKENSTOCKINVESTOR INFORMATION | 5. FINANCIAL OVERVIEW
Slide 25: Historical growth and margins
1 2 2 Note: 1 FY14-22; 2 Adjusted Gross Profit Margin and Adjusted EBITDA Margin are non-IFRS measures. Please see the appendix for a reconciliation of each non-IFRS measure to its most closely comparable IFRS measure.
Slide 26: Revenue 2014-2022
2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 27: Revenue, adjusted gross profit and adjusted EBITDA
1,243 1,117 962 921 774 728 681 548 568 435 400 387 333 292 195 2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23 % growth 32% 29% 21% 37% 41% 20% 50% 49% 16% Constant currency 37% 23% 19% % margin 55% 57% 62% 62% 61% 27% 30% 35% 36% 35%
Slide 28: Revenue growth drivers FY20-FY22
Revenues FY20 FY22 €728 million €1,243 million • • Units ASP 12% CAGR 16% CAGR • Pricing Channel Product Regions FX
Slide 29: Capex as percent of net revenue
• • 489 536 322 232 359 212 60 59 66 (40) (96) (113) 2020 2021 2022 % net rev. 32% 33% 39%
Slide 30: Strong cashflow generation providing optionality
BIRKENSTOCK: STRONG CASHFLOW GENERATION PROVIDING OPTIONALITY CASH FLOW (IN € MILLION) 2020 2021 2022 Operating Cash Flow 194 177 234 thereof: Funds from operations! 163 264 404 thereof: Changes in working capital’ 31 (87) (169) Investing Cash Flow? (3) (18) (72) Financing Cash Flow (130) (83) (105)
Slide 31: 9M 2023 results
9M 2022 9M 2023 Δ% Revenue 921 1,117 +21% Cost of Sales (377) (437) Gross Profit 544 681 Operating expenses (296) (396) FX Gain (Loss) 32 (51) Other income, net (3) 2 Profit from Ops. 277 236 Finance cost, net (90) (81) Income Tax Expense (58) (51) Net Profit 129 103 Adj. Gross Profit 568 681 +20% %
Slide 32: Success factors and unlocking white spaces
BIRKENSTOCK SUCCESS FACTORS AND UNLOCKING WHITE SPACES LONG-TERM GROWTH TARGET MIDTOHIGHTEENS 60%+ 30%+ REVENUE GROWTH ADJ. GROSS PROFIT MARGIN ADJ. EBITDA MARGIN We are following a business model of predictable, recurring success We are disciplined and committed to our scarcity model We intend to g
Slide 33: Reconciliation of non-IFRS measures
BIRKENSTOCK RECONCILIATION OF NON-IFRS MEASURES IN € MILLION Year ended Period October 1, Period May 1, Year ended Year ended 9M 2022 9M 2023 September 30, 2020 2020, through 2021,through September 30, 2021 September 30, 2022 April 30, 2021 September 30, 2021 Net Profit (Loss) 101 ” (7) 82 187 129 1
Slide 34: Reconciliation of non-IFRS measures
BIRKENSTOCK RECONCILIATION OF NON-IFRS MEASURES IN € MILLION Year ended Period October Period May 1, Year ended Year ended 9M 2022 9M 2023 September 30,2020 1,200, through 2021,through September 30, 2021 September 30, 2022 April 30, 2021 September 30, 2021 Net Profit (Loss) 101 ” (7) 82 187 129 103
Slide 35: Questions for our Birkenstock team?
QUESTIONS FOR OUR BIRKENSTOCK TEAM?