Global Fashion Group S.A. · XETR:GFG
Global Fashion — Investor Day (March 2022)
64 slides from Global Fashion's investor day presentation, Mar 8, 2022
Slide 1: #1 Fashion & Lifestyle Destination in Growth Markets
#1 FASHION & LIFESTYLE DESTINATION IN GROWTH MARKETS Strategy Update 8 March 2022
Slide 2: Agenda
AGENDA WHO WE ARE 3 OUR OPPORTUNITY 6 HOW WE WIN 12 BEST-IN-CLASS CUSTOMER EXPERIENCE 14 PARTNER OF CHOICE FOR BRANDS 28 PEOPLE & PLANET POSITIVE 38 OUR FINANCIALS 42 APPENDIX 57 2 STRATEGY UPDATE: AGENDA
Slide 3: Who We Are
WHO WE ARE 3 STRATEGY UPDATE: WHO WE ARE
Slide 4: Our vision is to be the #1 fashion and lifestyle destination
OUR VISION IS TO BE THE #1 FASHION AND LIFESTYLE DESTINATION IN OUR MARKETS OUR PURPOSE IS TO ENABLE TRUE SELF-EXPRESSION 4 STRATEGY UPDATE: WHO WE ARE
Slide 5: We are a leader in our markets with consistent growth
WE ARE A LEADER IN OUR MARKETS WITH CONSISTENT GROWTH GROUP LATAM CIS SEA ANZ NMV GROWTH1 & MARGIN EXPANSION NMV (€M) 2021 KEY STATS +26% +24% +22% +23% NMV (€M) 38% 2,390 583 862 407 538 2,390 1,958 1,454 1,778 Marketplace ADJ. EBITDA MARGIN 0.9% (3.4)% 6.0% 0.0% 4.0% 2018 2019 2020 2021 ADJ. EBITD
Slide 6: Our Opportunity
OUR OPPORTUNITY 6 STRATEGY UPDATE: OUR OPPORTUNITY
Slide 7: Our ambition: building a €10bn NMV business
OUR AMBITION: BUILDING A €10BN NMV BUSINESS ~20-27% CAGR Order Frequency Growth ~€10BN NMV Active 24% average growth1 Customer Growth €2.4bn €1.5bn 2018 2021 6-8 Years (1) Constant currency growth rate. 7 STRATEGY UPDATE: OUR OPPORTUNITY
Slide 8: One billion people in a growing ~€300bn market
ONE BILLION PEOPLE IN A GROWING ~€300BN MARKET CIS 4 countries 213m people 17 countries €70bn market 1,030m people 5% 2021-25 CAGR €300bn market 9% 2021-25 CAGR SEA 7 countries 462m people €100bn market 9% 2021-25 CAGR LATAM 4 countries 330m people ANZ €95bn market 2 countries 14% 2021-25 CAGR 32m p
Slide 9: Online adoption will continue to drive long-term growth
ONLINE ADOPTION WILL CONTINUE TO DRIVE LONG-TERM GROWTH Long-term FASHION AND LIFESTYLE ONLINE PENETRATION – GFG’S MARKETS 26% ANZ ~50% WEIGHTED TO GFG’S 2021 NMV BY COUNTRY 21% 22% 23% CIS 19% 19% 18% 16% 15% 14% 13% SEA 12% 10% 11% 11% 8% LATAM 9% 10% 7% 9% 6% 8% 5% 3% 4% 2018 2019 2020 2021 2025
Slide 10: Substantial opportunity to grow
SUBSTANTIAL OPPORTUNITY TO GROW ACTIVE CUSTOMERS AS % OF TARGET AGE GROUP (15-45)1 ORDERS PER ACTIVE CUSTOMER 2021 2021 2018 14.8% 4.2 3.2 2.8 2.9 2.0 4.8% 10.9% 3.5% 4.0% 1.6% 2.3% 3.1% 2.9% 0.9% GFG LATAM CIS SEA ANZ GFG LATAM CIS SEA ANZ Source: GFG calculations based on data from Euromonitor Int
Slide 11: Only at the beginning of reaching our market potential
ONLY AT THE BEGINNING OF REACHING OUR MARKET POTENTIAL 50% ONLINE PENETRATION 40% All markets benefit from ongoing growth in online penetration 30% ANZ ORDER CIS 20% FREQUENCY SEA A key opportunity to grow by increasing breadth of 10% LATAM offering and improving customer experience 0% – 1.0 2.0 3.0
Slide 12: How We Win
HOW WE WIN 12 STRATEGY UPDATE: HOW WE WIN
Slide 13: How we win
HOW WE WIN TRUE LOCAL EXPERT BEST-IN-CLASS PARTNER OF CUSTOMER CHOICE FOR EXPERIENCE BRANDS CONNECTING CUSTOMERS AND BRANDS THROUGH OUR PLATFORM MODEL 13 STRATEGY UPDATE: HOW WE WIN
Slide 14: Best-in-class customer experience
HOW WE WIN BEST-IN-CLASS CUSTOMER EXPERIENCE BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY 14 STRATEGY UPDATE: HOW WE WIN
Slide 15: We offer the most comprehensive assortment
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY WE OFFER THE MOST COMPREHENSIVE ASSORTMENT ROLLOUT OF ADJACENT CATEGORIES ACCELERATED, PRODUCING A STRONG HALO EFFECT 2021 NMV SHARE 5% Own Brand 45% Global 50% Local APPAREL FOOTWEAR ACCESSORIES SPORT KID
Slide 16: Case study: beauty rollout in ANZ
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY CASE STUDY: THE ROLLOUT OF ADJACENT CATEGORIES – BEAUTY IN ANZ €7.1bn 175 ANZ Beauty market size beauty brands on THE ICONIC 5% 26% 2021-2025 market CAGR of products with sustainable credentials BEAUTY OVE
Slide 17: All product selected by local team
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY ALL PRODUCT SELECTED BY LOCAL TEAM TOP DRESS LATAM CIS SEA ANZ SELLERS BRAND TYPE KEY Global Own Brand Local Premium Note: Dresses included are in 2021’s top 10 bestsellers by units sold per country site.
Slide 18: We partner with 40 of the top 50 global brands
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY WE PARTNER WITH 40 OF THE TOP 50 GLOBAL BRANDS 13% of NMV +46% NMV growth LUXURY & CONTEMPORARY PREMIUM LIFESTYLE MAINSTREAM TREND SPORT Brands not in the Top 50 list Source: Euromonitor’s top apparel bran
Slide 19: App usage driving customer engagement and sales
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY APP USAGE DRIVING CUSTOMER ENGAGEMENT AND SALES APP SHARE OF NMV IS GROWING INCREASING ACCESS TO % ENGAGED CUSTOMERS AS OF 2021 48% 50% 59% 63% 41% of customers visiting 5x or more per month 54% app visit
Slide 20: App creates an inspiring experience for our customers
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY APP CREATES AN INSPIRING EXPERIENCE FOR OUR CUSTOMERS WEAR IT WITH SUGGESTIONS VISUAL SEARCH 20 STRATEGY UPDATE: HOW WE WIN
Slide 21: App creates an inspiring experience for our customers
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY APP CREATES AN INSPIRING EXPERIENCE FOR OUR CUSTOMERS VIRTUAL TRY ON SUSTAINABLE EDITS 21 STRATEGY UPDATE: HOW WE WIN
Slide 22: Case study: e-production in Brazil
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY CASE STUDY: INSPIRING OUR CUSTOMERS – E-PRODUCTION IN BRAZIL 10 2.5m 25m modular studios products uploaded photos produced Dafiti (last 11 yrs) (last 11 yrs) STATE-OF- 8,000 15m THE-ART models in last 11 y
Slide 23: Our nine local fulfilment centres enable fast deliveries
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY OUR NINE LOCAL FULFILMENT CENTRES ENABLE FAST DELIVERIES 3 AUTOMATED FULFILMENT CENTRES IN OUR LARGEST MARKETS 6 NON-AUTOMATED FULFILMENT CENTRES CIS SECOND FC TO GO LIVE H2 2022 ADDING 7M ITEM STORAGE CAP
Slide 24: Case study: fulfilment in SEA
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY CASE STUDY: SUPPORTING OUR BRANDS – FULFILMENT IN SEA 3 150+ 50% fulfilment SEA brands using sq. foot & capacity centres in SEA Operations by GFG expansion in H2 22 150,000 AEO Status 6.7m item processing
Slide 25: Making delivery and returns more convenient
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY MAKING DELIVERY AND RETURNS MORE CONVENIENT TRY-ON REGION COURIER DELIVERY PICK-UP POINTS RETURN RATE1 SERVICE AT THE DOOR & OWN 3RD PARTY OWN 3RD PARTY LOCKERS 2020 2021 FUTURE TREND PICK-UP POINTS Increa
Slide 26: Creating a highly differentiated online fashion offering
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY CREATING A HIGHLY DIFFERENTIATED ONLINE FASHION OFFERING INSPIRING & SEAMLESS BROAD & RELEVANT ASSORTMENT FAST & CONVENIENT DELIVERY DIGITAL EXPERIENCE • Broad and expanding set of categories • App-centric
Slide 27: Growing loyal customer base
BROAD & RELEVANT ASSORTMENT INSPIRING & SEAMLESS DIGITAL EXPERIENCE FAST & CONVENIENT DELIVERY AS A RESULT, WE HAVE A GROWING LOYAL CUSTOMER BASE ACTIVE CUSTOMERS AVERAGE ORDER FREQUENCY PER YEAR (M) 8.5 +15% CAGR 3.0x 2.8 17.0 Average Top 20% 11.2 +1.8x AVERAGE NMV / ACTIVE CUSTOMER PER YEAR more c
Slide 28: Partner of choice for brands
HOW WE WIN PARTNER OF CHOICE FOR BRANDS UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES 28 STRATEGY UPDATE: HOW WE WIN
Slide 29: Connecting brands with customers through our platform
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES CONNECTING BRANDS WITH CUSTOMERS THROUGH OUR PLATFORM CUSTOMER BASE & BRANDS’ AUDIENCE • 17 million active customers with 2.7bn visits in 2021 GLOBAL & LOCAL BRANDS • Attractive demographics – Predominantly fema
Slide 30: Our markets are more complex
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES OUR MARKETS ARE MORE COMPLEX GFG EXPERTISE TO SUPPORT BRANDS… …WITH REGIONAL COMPLEXITIES Underdeveloped infrastructure and ecommerce INFRASTRUCTURE solution providers Population located across vast and remote T
Slide 31: Multiple business models tailored to brands' needs
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES MULTIPLE BUSINESS MODELS TAILORED TO BRANDS’ NEEDS 62% NMV 38% NMV MARKETPLACE Brand retains ownership of stock RETAIL FULFILLED BY CROSS-DOCKING DROP SHIPMENT GFG holds stock and fulfils orders Brand holds stoc
Slide 32: Improving service to our brand partners
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES IMPROVING SERVICE TO OUR BRAND PARTNERS INITIATIVES IN PLACE TO SCALE MARKETPLACE GROW SKU WIDTH Curated Marketplace expanded beyond Retail options to include more brand choices and sizes MARKETPLACE SIZE REFILL
Slide 33: Brand partners are adopting hybrid models
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES BRAND PARTNERS ARE ADOPTING HYBRID MODELS TOP 30 BRANDS / BRAND GROUPS BY NMV 2021 CORNERSTONE OF OUR BRAND PORTFOLIO TOP 30 BRANDS / BRAND GROUPS BY NMV IN 2021 ~34% of Group NMV 93% of brands on both Retail an
Slide 34: Platform services drive stronger brand relationships
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES PLATFORM SERVICES DRIVE STRONGER BRAND RELATIONSHIPS MARKETPLACE BRAND.COM BENEFITS GFG’S PLATFORM SERVICES • Increase stickiness of our Global Fashion Platform, for brands and OPERATIONS BY GFG MARKETING BY GFG
Slide 35: Operations by GFG: supporting brands' supply chain
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES OPERATIONS BY GFG: SUPPORTING BRANDS’ SUPPLY CHAIN OUR END-TO-END OPERATIONS SERVICES… …ENABLE BRANDS’ OWN BRAND.COM CHANNELS AND DRIVE SALES NUMBER OF BRANDS USING SERVICE (#) • Leverages our operational assets
Slide 36: Marketing by GFG & Data by GFG: brand intelligence
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES MARKETING BY GFG & DATA BY GFG: BRAND INTELLIGENCE MARKETING BY GFG DATA BY GFG ENABLING BRANDS TO INCREASE REACH WITH A FULL SUITE OF SERVICES COMBINING POWER OF TECHNOLOGY AND LARGE CUSTOMER BASE REPORT >1,900
Slide 37: Our progress as a platform business
UNLOCKING COMPLEX MARKETS OFFERING FLEXIBLE BUSINESS MODELS UNRIVALLED PLATFORM SERVICES OUR PROGRESS AS A PLATFORM BUSINESS 2018 2021 Target Model Marketplace 15% 38% ~50% Marketplace share of NMV Fulfilled by GFG Fulfilled by GFG & Cross-Docking 56% 73% ~75% & Cross-Docking share of marketplace sh
Slide 38: People & planet positive
HOW WE WIN PEOPLE & PLANET POSITIVE CLIMATE ACTION CIRCULARITY & CONSCIOUS CONSUMPTION FAIR & ETHICAL SOURCING 38 STRATEGY UPDATE: HOW WE WIN
Slide 39: Advancing climate action
CLIMATE ACTION CIRCULARITY & CONSCIOUS CONSUMPTION FAIR & ETHICAL SOURCING ADVANCING CLIMATE ACTION 2021 ACHIEVEMENTS Carbon +569k 4x Neutrality orders delivered by low 100% own brand products made from lower for our own operations of FCs sourcing and customer emissions methods renewable electricity
Slide 40: Enabling circularity & conscious consumption
CLIMATE ACTION CIRCULARITY & CONSCIOUS CONSUMPTION FAIR & ETHICAL SOURCING ENABLING CIRCULARITY & CONSCIOUS CONSUMPTION 2021 ACHIEVEMENTS 2030 TARGETS TRANSITION TO MORE SUSTAINBLE CONSCIOUS CONSUMPTION of directly purchased and PACKAGING COMPLETE 100% own brand packaging made from more % OF COUNTRI
Slide 41: Prioritising fair & ethical sourcing
CLIMATE ACTION CIRCULARITY & CONSCIOUS CONSUMPTION FAIR & ETHICAL SOURCING PRIORITISING FAIR & ETHICAL SOURCING 2021 ACHIEVEMENTS 100% 70% >90% of own brand factories of own brand factories of our largest brands audited participated in training on engaged on sustainability working conditions and imp
Slide 42: Our Financials
OUR FINANCIALS 42 STRATEGY UPDATE: OUR FINANCIALS
Slide 43: A track record of sustainable growth
A TRACK RECORD OF SUSTAINABLE GROWTH CONSISTENT NMV GROWTH1… … AND STRONG MARGINS… …CREATE IMPROVEMENTS IN (€M) GROSS MARGIN (%) PROFITABILITY +24% average ADJUSTED EBITDA MARGIN (%) Reflects increased 24% Marketplace share 2,390 45.6% 26% 23% 43.1% 1.2% 0.9% 1,958 22% 1,778 40.1% 1,453 38.9% (2.8)%
Slide 44: Leading to strong customer economics
LEADING TO STRONG CUSTOMER ECONOMICS ECONOMICS PER ACTIVE CUSTOMER 2018 2021 +8% €7.0 increase in profitability per customer before marketing +4% +15% +184% NMV / Active Customer Gross Profit / Active Customer Fulfilment, Tech, Admin Contribution before Marketing & Other Costs 44 STRATEGY UPDATE: OU
Slide 45: Each region at a different stage of maturity and scale
EACH REGION IS AT A DIFFERENT STAGE OF MATURITY AND SCALE IS A KEY DRIVER OF REGIONAL PROFITABILITY PROFITABILITY 8.0% A key opportunity to grow CIS NMV is delivering scale benefits 6.0% across marketing, A key opportunity technology, fulfilment and to grow by increasing order ADJ. EBITDA MARGIN ANZ
Slide 46: A clear financial strategy to profitable growth
A CLEAR FINANCIAL STRATEGY TO PROFITABLE GROWTH BUILD & DEVELOP A IMPROVE LEVERAGE INVEST IN TECHNOLOGY VALUABLE CUSTOMER ASSET GROSS MARGINS EXISTING EFFICIENCY & FULFILMENT ASSETS Focus on disciplined customer Development of Retail, Delivering scale benefits from Drive the flywheel and acquisition
Slide 47: Our engaged customer base continues to grow
OUR ENGAGED CUSTOMER BASE CONTINUES TO GROW REACTIVATION STRATEGY NMV BY COHORT €2.4bn % SHARE OF TOTAL ALL PREVIOUS YEAR COHORTS SPENDING MORE €2.0bn 23% €1.8bn €1.5bn 31% WELL-ESTABLISHED €1.3bn COHORT BEHAVIOUR IN €1.1bn 29% YEARS AFTER ACQUISITION 32% 36% 43% GROWING VALUE OF THE CUSTOMER 2016 2
Slide 48: These improvements permit longer payback
THESE IMPROVEMENTS PERMIT LONGER PAYBACK TRAFFIC BY MARKETING CHANNEL1 PAYBACK ON OUR MARKETING INVESTMENTS TOTAL VISITS (%) CLV / CAC RATIO3 1.3x 39% Paid 1.1x 1.1x 0.8x SEO: 8% CRM: 10% 12-month 61% payback Unpaid Direct: 43%2 2021 2018 2019 2020 2021 (1) Traffic is defined as the total number of
Slide 49: Marketplace and retail comparison
MARKETPLACE AND RETAIL COMPARISON MARKETPLACE VS. RETAIL MARKETPLACE & SERVICES ARE CAPITAL-LIGHT, IMPROVING RETURNS Retail Marketplace SHARE OF NMV INVENTORY FOR €100M NMV GROWTH • Retail inventory generally funded by payables Marketplace €16m 38% • Seasonal working capital needs largely funded by
Slide 50: Contribution margin comparison
CONTRIBUTION MARGIN COMPARISON RETAIL AND MARKETPLACE HAVE SIMILAR UNDERLYING MARGINS BUT VERY DIFFERENT IFRS PRESENTATIONS AS % OF SELLING PRICE NET OF VAT1 AS % OF IFRS REVENUE Retail Marketplace Margin Margin after Fulfilment Margin Margin after Fulfilment 100% 42% 36% 35% 28% 15% 12% 15% 100% (1
Slide 51: Marketplace & platform services will drive gross margin to c.50%
MARKETPLACE & PLATFORM SERVICES WILL DRIVE GROSS MARGIN TO C.50% OVER TIME GROSS MARGIN BREAKDOWN 6-8 YEARS (%) PLATFORM High gross margin 5-10% of c.50% SERVICES Currently small at c.2% of Revenue revenue 45.6% c.4% 43.1% 38.9% 40.1% 1.7% 8.5% c.12% Further gains planned 7.3% c.50% of 3.2% 4.7% MAR
Slide 52: Track record of delivering leverage across our cost base
TRACK RECORD OF DELIVERING LEVERAGE ACROSS OUR COST BASE 2018 2019 2020 2021 18-21 Scale efficiencies and FULFILMENT COSTS1 18.3% 18.3% 16.7% 16.3% (2.0)pp increase in Marketplace participation Marketing costs evolved from purely new customer MARKETING COSTS1 7.8% 7.4% 6.2% 7.2% (0.6)pp acquisition
Slide 53: Investing in technology and fulfilment assets at c.3% of revenue
INVESTING IN TECHNOLOGY AND FULFILMENT ASSETS AT C.3% OF REVENUE PLUS MAJOR PROJECTS TOTAL CAPEX Recurring Capex Major Fulfilment Centre Projects 1 (€M) 72.1 60.2 30.4 48.7 15.7 9.1 41.7 44.5 c.3% of Revenue 39.6 on average 2019 2020 2021 (1) Major fulfilment centre projects include new fulfilment c
Slide 54: Sources & uses of capital
SOURCES & USES OF CAPITAL PERMANENT CAPITAL Organic growth & Medium-term capex funded From equity near-term capex by operating cash flows MEDIUM TERM CAPITAL Inorganic growth From convertible bond Fund working capital & manage FX exposure WORKING CAPITAL Local facilities Project specific financing f
Slide 55: Long term targets supported by marketplace & services
LONG TERM TARGETS SUPPORTED BY MARKETPLACE & SERVICES 2021 IN 6-8 YEARS NMV €2.4bn c.€10bn • Building a €10bn NMV business NMV GROWTH (CCY) 24% 25%+ • €10bn in 6-8 years equates to an NMV CAGR range of 20-27% • Marketplace approaching 50% of NMV. Platform Services develop to 5-10% of MARKETPLACE SHA
Slide 56: The #1 fashion & lifestyle destination in growth markets
THE #1 FASHION & LIFESTYLE DESTINATION IN GROWTH MARKETS Large and growing fashion & lifestyle market with increasing online penetration in our markets Consistent growth due to a best-in-class customer experience and a dynamic, local approach for our brands Strong market position and a market leader
Slide 57: Appendix
APPENDIX 57 STRATEGY UPDATE: APPENDIX
Slide 58: Illustration: €10bn NMV would imply c.€6bn revenue
ILLUSTRATION – €10BN NMV WOULD IMPLY C.€6BN REVENUE MARKET- PLATFORM RETAIL GFG PLACE SERVICES • Ambition is a €10bn NMV business in 6-8 years NMV 5.0 5.0 0.0 10.0 • Marketplace participation around 50% of NMV (€BN) • Platform Services does not form part of NMV REVENUE 4.5 1.1 0.3-0.6 5.9-6.2 • Reve
Slide 59: Investing in growth
INVESTING IN GROWTH 2020 2021 Funding Operations as we ADJ. EBITDA 16.4 13.6 scale the business – EBITDA, leases, and working capital for CASH LEASE COSTS (31.3) 15.9 (32.2) (43.3) retail inventory WORKING CAPITAL 30.8 (24.7) Investing in our technology and TECH CAPEX (20.6) (30.8) fulfilment assets
Slide 60: Profitability by region
PROFITABILITY BY REGION LATAM CIS SEA ANZ Active Customers 7.8m 3.6m 3.6m 2.0m SCALE NMV (€M) 583 862 407 538 # Countries 4 4 7 2 COMPLEXITY # FCs 4 1 3 1 # Commercial Teams 4 1 3 1 MATURITY Online Penetration 8% 19% 11% 22% Order Frequency 2.0 4.2 2.9 3.2 ADJ. EBITDA MARGIN (3.4)% 6.0% 0.0% 4.0% 60
Slide 61: Fulfilment centre capacity
FULFILMENT CENTRE CAPACITY REGION COUNTRY STORAGE UNIT CAPACITY (K) AUTOMATION OPENED / LAST EXPANDED Argentina 750 Low May-20 Brazil 7,100 High Sep-21 LATAM Chile 800 Low Jun-20 Colombia 1,400 Low Jul-20 CIS Russia 14,000 Medium Dec-18 Indonesia 2,500 Low Jul-20 SEA Malaysia 4,900 Low May-19 Philip
Slide 62: Strong and diverse team with global and local expertise
STRONG AND DIVERSE TEAM WITH GLOBAL AND LOCAL EXPERTISE SENIOR LEADERSHIP LOCAL, DIVERSE TEAM Patrick Schmidt Christoph Barchewitz Matthew Price Co-CEO Co-CEO CFO Dynamic and diverse team of 15,500 people SEA ANZ CIS LATAM 99%+ Gunjan Soni Erica Berchtold Jere Calmes Andre Farber of our people based
Slide 63: KPI definitions
KPI DEFINITIONS Active Customers is defined as the number of customers who have purchased at least one item after ACTIVE CUSTOMERS cancellations, rejections and returns in the last twelve months Adjusted EBITDA is EBITDA adjusted for share-based payments, impairment of goodwill, Group ADJUSTED EBITD
Slide 64: Disclaimer
DISCLAIMER Certain statements included in this document are forward-looking statements. Forward-looking statements can typically be identified by the use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” or other words of simil