Nakiki Se · XETR:WDL1
Nakiki — windeln.de — FY2016 Earnings Presentation
27 slides from Nakiki's earnings presentation, Mar 15, 2017
Slide 1: Full year and Q4 2016 results
Full year and Q4 2016 results March 15, 2017
Slide 2: Disclaimer
Disclaimer This document and its related communication (“Presentation”) have been issued by windeln.de SE and its subsidiaries ( “Company”) and do not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or s
Slide 3: Results Highlights and Business Update
Results Highlights and Business Update Financial Update Q4 / FY 2016
Slide 4: 2016 was a challenging year overall but progress clearly visible in Q4 results
Summary 2016 was a challenging year overall but progress clearly visible in Q4 results • 21% revenue growth in 2016 year over year despite tough conditions − Negative impact from regulatory changes for China cross-border e-commerce and ERP introduction − Adj. EBIT margin of -13.7% also impacted by i
Slide 5: FY 2016 results in line with recent outlook provided
Outlook 2016 FY 2016 results in line with recent outlook provided 2016 OUTLOOK 2016 RESULTS Revenues EUR 190m to 200m Revenues: EUR 194.8m and Growth +20 to 25% growth yoy Growth: +21% Gross Profit c. 27% Margin: 26.7% Margin Adj. EBIT Between -12 to -14% Margin: -13.7% Margin 5
Slide 6: We are one of the leading online retailers in the attractive baby and children products market
At a glance We are one of the leading online retailers in the attractive baby and children products market Large and growing e-commerce market for baby and children products in Europe (2017: EUR 12bn, 2021: EUR 16bn) Large and growing cross-border- e-commerce market to China (2016: USD 85bn); st
Slide 7: We are making good progress on the STAR measures
STAR We are making good progress on the STAR measures… 1 Focus of business model • Stop flashsale of Nakiki 6 Enhance management team 2 Focus of products • New COO / BU heads • Reduction of brands/SKUs • New head of product mgmt. • Accelerate private label STAR 5 Improve China business 3 Leverage Eu
Slide 8: …and on initiatives to improve customer experience
Customer Experience …and on initiatives to improve customer experience Striving to be #1 for our customers China offering: Private label: Private label: IT: Unionpay stroller Avani brand New Shop System Additional, popular High quality at Textiles with natural Improved, responsive payment me
Slide 9: Results Highlights and Business Update: Financial Update Q4/2016
Results Highlights and Business Update Financial Update Q4/2016
Slide 10: We have more than 1 million active customers; Net Promotor Score increased
KPIs We have more than 1 million active customers; Net Promotor Score increased # of active customers # of orders from repeat Avg. # of orders and Mobile visit share in thousands customers average order value in thousands -7.8% +8pp +24% +13% Acquisition €95 of feedo and 63% bebitus 1,065 1,789 €88
Slide 11: 4th quarter seasonally strong but also shows improvement in our business throughout the year
Revenues 4th quarter seasonally strong but also shows improvement in our business throughout the year Group DACH In EURm In EURm -4.6% +25.0% +35.2% +1.8% -8.5% -11.6% 47.1 44.9 45.7 57.1 14.3 13.1 11.5 15.6 Q1/16 Q2/16 Q3/16 Q4/16 Q1/16 Q2/16 Q3/16 Q4/16 China Rest of Europe In EURm In EURm -12.1%
Slide 12: 21% revenues growth year over year despite China regulation and ERP impact in 2016
Revenues 21% revenues growth year over year despite China regulation and ERP impact in 2016 Group DACH In EURm In EURm +21.0% Reduction of 0.0% brands/SKUs +3.8% +1.9% 161.0 194.8 55.1 57.1 54.5 54.5 15.3 15.6 2015 2016 Q4/2015 Q4/2016 2015 2016 Q4/2015 Q4/2016 China Rest of Europe In EURm In EURm S
Slide 13: The diversification of revenues continues through our European expansion
Revenues The diversification of revenues continues through our European expansion 2014 2015 2016 Total: EUR 92.5m Total: EUR 161.0m Total: EUR 194.8m 1.7% 9.6% 26.2% EUR 1.6m EUR 15.4m EUR 51.0m DACH China Rest of Europe 13
Slide 14: Seasonally strong 4th quarter shows improvement in relative cost items
Margins Seasonally strong 4th quarter shows improvement in relative cost items Comments Q1 2016 Q2 2016 Q3 2016 Q4 2016 12M 2016 on Q4 Revenues EUR m 47.1 44.9 45.7 57.1 194.8 • Seasonally strong % of Revenues revenues (Xmas) Gross profit 28.1% 29.5% 25.9% 23.9% 26.7% • Typically lower margins in Q4
Slide 15: Continous margin improvement at International Shops
Margins Continous margin improvement at International Shops German Shops (DE + CN) International Shops Revenues (EURm; margin in %) Revenues (EURm; margin in %) 140.3 20 150 -0.9% 139 50 43.1 -3.3% 41.7 +169.4% 55.9 +29.5% 60 15.5 DE 49.2 +1.0% 49.6 40 15 100 DE 13.3 +6.1% 14.1 12.0 30 40 10 CN 20 2
Slide 16: We reduced our inventory significantly during the last year
Cash Flow We reduced our inventory significantly during the last year High Inventory Normalized level EUR -5.5m since 30-Dec-15 IMF measures NWC (as % 3.6% 2.9% 2.1% 2.9% 6.4% 7.7% 8.9% 3.4% 3.2% of revenues) • Stop of Nakiki flashsale 29.3 28.2 27.1 • Selldown of excess Nakiki and windeln.de 21.6 i
Slide 17: Liquidity position remains strong
Cash Flow Liquidity position remains strong Liquidity bridge (31 December 2016) In EURm 65.6 -9.6 -0.3 -4.4 4.4 55.7 51.3 Cash + cash Operating Investing Investing Cash + cash Time deposits Cash equivalents cash flow cash flow cash flow equivalents + time deposits Sep 2016 (operating) (time deposits
Slide 18: We expect on average 15+% revenues growth annually and adj. EBIT break-even in the course of 2019
Outlook We expect on average 15+% revenues growth annually and adj. EBIT break-even in the course of 2019 OUTLOOK 2017 MID-TERM Revenues Moderate double Average annual Growth digit growth growth rate of 15+% Contribution Margin* Moderate improvement; Adj. EBIT full impact from STAR break-even measur
Slide 19: Break-even outlook to be achieved through ongoing STAR measures and scale effects
Outlook Break-even outlook to be achieved through ongoing STAR measures and scale effects from revenue growth Adj. EBIT margin in % 2016 2017 - 2019 2019 2+% p.a.1 +7 to 8% -13.7% in total Adj. EBIT Adj. EBIT STAR & other Growth / break-even in margin 2016 measures Scale effects course of 2019 • We
Slide 20: Q&A
= a Wwindeln.de Everything for my baby Q&A
Slide 21: Key performance indicators quarter over quarter (continuing operations)
Appendix Key performance indicators quarter over quarter (continuing operations) Consolidation Consolidation of Feedo of Bebitus Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q2 ’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Site Visits 5,089 6,261 7,463 8,798 9,897 10,524 12,771 18,532 21,346 22,106 23,030 27,507 (i
Slide 22: Definitions of key performance indicators
Appendix Definitions of key performance indicators 1) We define Site Visits as the number of series of page requests from the same device and source in the measurement period and include visits to our online magazine. A visit is considered ended when no requests have been recorded in more than 30 mi
Slide 23: Selected business segment and geographic data
Appendix Selected business segment and geographic data Business segments Geographic region (Total) yoy Q4 Q4 yoy yoy Q4 Q4 yoy kEUR 2016 2015 R1 growth 2016 2015 R1 growth kEUR 2016 2015 R1 growth 2016 2015 R1 growth Revenues Revenues 194,756 160,994 21.0% 57,131 55,052 3.8% 194,756 160,994 21.0% 57
Slide 24: Income statement (continuing operations)
Appendix Income statement (continuing operations) kEUR 2016 2015 R1 Q4 2016 Q4 2015 R1 Revenues 194,756 160,994 57,131 55,052 Cost of sales -142,984 -118,405 -43,628 -39,600 Gross profit 51,772 42,589 13,503 15,452 % margin 26.6% 26.5% 23.6% 28.1% Selling and distribution expenses -68,413 -43,117 -1
Slide 25: Total, discontinued and continuing operations
Appendix Total, discontinued and continuing operations 2016 Q4 2016 Discontinued Continuing Discontinued Continuing Total Total kEUR (Shopping Clubs) (ex Shopping Clubs) (Shopping Clubs) (ex Shopping Clubs) Revenues 209,586 14,830 194,756 57,198 67 57,131 % yoy growth 17.3% -15.8% 21.0% -5.1% -98.7%
Slide 26: Balance sheet and cash flow statement
Appendix Balance sheet and cash flow statement Consolidated statement of financial position Consolidated statement of cash flows December 31, December 31, kEUR 2016 2015 Q4 2016 Q4 2015 kEUR 2016 2015 R3 Net cash flows from/used in Total non-current assets 35,520 33,750 -31,224 -22,244 -9,554 -12,31
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