Signa Sports United N.v. · OTC:SSUNF
Signa Sports United — SPAC Merger (October 2021)
41 slides from Signa Sports United's SPAC merger presentation, Oct 21, 2021
Slide 1: SIGNA Sports United
October 2021 1 SIGNA SPORTS UNITED SIGNA SPORTS UNITEDOctober 2021 1 SIGNA SPORTS UNITED SIGNA SPORTS UNITED
Slide 2: Confidentiality and Disclosures
Confidentiality and Disclosures This presentation (the Presentation ) has been prepared by SIGNA Sports United GmbH (the “Company”) in connection with a possible business combination (a “Transaction”) involving the Company and a special purpose acquisition company (the “SPAC”). This presentation is
Slide 3: Risk factors and forward-looking statements
Achieving our business and financial objectives, including growth in operations and maintenance of a strong balance sheet and liquidity position, could be adversely affected by, among other things: • Our inability to effectively integrate our largest acquisition to date, Wiggle Group, to realize exp
Slide 4: Transaction summary
• On June 11, 2021, SIGNA Sports United (SSU), Yucaipa Acquisition Corporation and WiggleCRC (WCRC) entered into a business combination agreement • The transaction is expected to close in Q4 2021 • Post-closing company will be listed on the NYSE (1) • The combination of SSU and Wiggle represents an
Slide 5: SSU and Yucaipa leadership
Stephan Zoll Ira Tochner Alex Johnstone CEO COO & CFO of Yucaipa CFO Acquisition Corporation Senior Partner at The Yucaipa 10+ years of TMT 20+ years digital / retail Companies Investment Banking experience experience 5 SIGNA SPORTS UNITEDStephan Zoll Ira Tochner Alex Johnstone CEO COO & CFO of Yuca
Slide 6: Ron Burkle and Yucaipa track record
Ron Burkle ✓ Widely followed Chairman with long track record of Chairman & CEO creating value in private and public companies • Founded The Yucaipa Companies (“Yucaipa”) in 1986 • Widely recognized as one of the pre-eminent investors ✓ Personal intent to commitment from Ron Burkle as a PIPE in the r
Slide 7: Key investment highlights
Long-term Large, fragmented sports retail market with high long-term growth in focus verticals Megatrends Strong D2C Market leading sports specialist webshop brands with >7M active customers Brands Track Record Robust, double digit organic growth with demonstrated ability to enter new markets Attrac
Slide 8: SIGNA Sports United
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Slide 9: SSU at a glance
Global Sports Market Sports E-Commerce Net Revenues Revenue Adj. EBITDA 2020 (1)(2)(3) CAGR 20E-25E (1)(3) FY 2021 (1)(3) CAGR 21E-25E FY 2021 Net revenue (FY 2021) by market and category (%) RoW US ClimatePartner.com/14421-2006-1001 5% 9% UK 19% Europe 67% Team Sports Tennis 7% 17% Outdoor 13% 63%
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Slide 11: Global sports market size
(2) $1.1 TN Global Sports Market 2020E $672BN Offline & Online Global Sports Retail Market 2025E $474BN Offline & Online Global Sports Retail Market 2020E $158BN SSU Current Serviceable Market $1.6BN SSU FY21E Revenue 31% 24% Online 2025E Today Penetration Source: Company Information, Management est
Slide 12: E-bike growth
• SSU largest fullbike e-tailer globally shipping (1) c.300k+ p.a. units LTM • SSU e-Bike division has >100% CAGR since 2015 • 30% of SSU e-Bike sales from exclusive SSU Own ~130 Brands ~20 Electric Cars Electric Bicycles Source: Deloitte Discover the Future Report 2020, Deloitte Electric vehicles S
Slide 13: Sports categories
Teamsports Biking Outdoor Racket sports Fitness Golf Running Source: Management estimates, third-party research. Note: (1) Online and offline sports retail market. Select categories shown. 13 SIGNA SPORTS UNITEDTeamsports Biking Outdoor Racket sports Fitness Golf Running Source: Management estimates
Slide 14: Market position by category
$880 1 2 3 4 #2 #3 #4 $230 1 2 3 4 #2 #3 #4 $220 1 2 3 4 #1 #3 #4 $110 1 2 3 4 #1 #2 #4 Source: Company information, Management estimates, third-party research. Note: SSU financial year end as of 30-Sep. Assumed EUR / USD of 1.2000. Includes WCRC, Midwest Sports and Tennis Express. WCRC subject to c
Slide 15: Growth strategy
• Consolidate market leadership• Highly fragmented market• E-commerce solutions for brands • Further penetrate Europe• Rationalize existing or enter new markets• Connected Retail for offline partners • U.S. market entrance• Further verticalise• Digital community integrations • Category expansion: Fu
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Slide 17: Technology platform and ecosystem
• Highly differentiated own e-commerce businesses • Full-Service e-Commerce solutions and Connected Retail • Connected digital sports apps, wearables and trackers Content Production • Proprietary and scalable Inventory Management tech stack leveraging broad sports Customer Retail Service data set Pa
Slide 18: Own brands pricing advantage
Source: Company information. Note: (1) Price of average SSU bikes versus average price of competitor bikes. 18 18 STRICTLY PRIVATE & CONFIDENTIAL SIGNA SPORTS UNITED SIGNA SPORTS UNITED
Slide 19: Own brand product examples
Source: Company information. 19 SIGNA SPORTS UNITEDSource: Company information. 19 SIGNA SPORTS UNITED
Slide 20: Racket finder tool
Step 1: Complete the racket finder questionnaire long medium Short Step 2: Receive tailored recommendations Step 3: Full racket details and customizations Source: Company information. 20 SIGNA SPORTS UNITEDStep 1: Complete the racket finder questionnaire long medium Short Step 2: Receive tailored re
Slide 21: Post-merger integration playbook
SSU post-merger integration playbook (1) Migration onto SSU Platform (1) Joint Sourcing and inventory management (1) Joint Sales & Marketing and Pricing Streamlined operations and fulfillment Combined overhead and service functions Source: Company information. Note: (1) WCRC subject to close concurr
Slide 22: M&A investment criteria
(2) SSU investment criteria following clear industry logic 2020A Net Revenue split (%) 4% (1) 15% Combination of leading global players 7% Leading positions in key markets, especially U.S. 58% 96% Unique assets & capabilities, e.g. own brands Proven stand-alone profitable growth track 20% High syner
Slide 23: Consolidation opportunity
$13.7 $9.5 $8.8 $3.9 $1.6 >$500M $200-500M $100-200M <$100M 2021E 2025E #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 #15 #16 #18 Global Top-3 Sports Retailers Source: Company information. Note: SSU financial year end as of 30-Sep. Pro forma for WCRC, Midwest Sports and Tennis Express. WCRC subject to
Slide 24: Enterprise and platform expansion
Retail media & data services C&C and endless-aisle 1-click commerce integration (1) Marketplace (Offline->Online) Online shop SaaS & fulfillment Sports activity engagement Service range Entry level Retail Media Vertical generalist Sales specialist Source: Company information. Note: (1) Connected Ret
Slide 25: Community and ecosystem
Source: Company information. Note: (1) Fast-Moving Consumer Goods. 25 SIGNA SPORTS UNITEDSource: Company information. Note: (1) Fast-Moving Consumer Goods. 25 SIGNA SPORTS UNITED
Slide 26: SIGNA SIGNA SP SPO ORTS RTS U UNITE NITED D
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Slide 27: Customer KPIs
12.0% 15.9% 20.7% 12.1% 250.2 (M, YoY Growth in %) (YoY Growth in %) 207.3 197.2 178.8 FY 2018A FY 2019A FY 2020A 9M YTD 7.0 0.5 12.8 37.8 2.47% (%, YoY Change in bps) 2.18% 2.05% 2.05% FY 2018A FY 2019A FY 2020A 9M YTD -- 1.1% 3.1% 0.9% LTM 06/20 LTM 06/21 $116.4 $117.7 $121.3 $123.7 (EUR, YoY Grow
Slide 28: Revenue retention by cohort
(%) – Actuals LTM December 96% 90% 90% 83% 58% 53% 53% 48% 2017 2018 2019 2020 2017 2018 2019 2020 Cohorts prior 2016 Cohort 2016 Cohort 2017 Revenue retention all cohorts Cohort 2018 Cohort 2019 Cohort 2020 Revenue retention cohorts older than 1+ years Source: Company information. Note: All KPIs ex
Slide 29: Revenue, gross profit and EBITDA
$1,621 ($m) $1,014 $849 $644 FY 2019A FY 2020A FY 2021E FY 2021E $613 ($m) $382 $310 $222 FY 2019A FY 2020A FY 2021E FY 2021E Margin 34.5% 36.5% 37.6% 37.8% + 240bps + 37bps $80 ($m, YoY margin growth in bps) $26 $19 FY 2019A FY 2020A FY 2021E FY 2021E Margin (0.2%) 2.2% 2.6% 4.9% Source: Company in
Slide 30: Net revenue outlook
$3,926 $621 $3,090 $350 $2,455 (4) $183 $1,800 - $1,955 $1,621 $55 $3,305 $19 $2,740 $2,272 $1,750 - $1,900 $1,602 FY 2021E FY 2022E FY 2023E FY 2024E FY 2025E (2) (3) E-Commerce Platform Source: Company information. Note: SSU financial year end as of 30-Sep. Assumed EUR / USD of 1.2000. Pro-forma i
Slide 31: Margin structure and long-term targets
(1) (2) FY 2020A FY 2021E Long Term ✓Dynamic pricing E-Commerce ✓Improving wholesale economics Gross Margin 36.1% 37.8% 37 - 39% ✓Private label share Personnel (10.2%) (9.0%) (8) - (10)% Logistics (9.9%) (11.0%) (9%) ✓Increased automation ✓Growing cohorts of repeat customers Marketing (7.1%) (6.6%)
Slide 32: Bike & Outdoor segment
FY 2020A 9M YTD 2021A FY 2020A 9M YTD 2021A Revenue Growth (y-o-y, %) Less penetrated markets ✓ Investing to win share Gross Profit ✓ Margin (%) Margin development with ✓ scale in market EBITDA Margin (%) Source: Management accounts, SSU Standalone Bike & Outdoor Segment. 32 SIGNA SPORTS UNITEDFY 20
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Slide 34: Transaction overview and pro forma ownership
✓ Values the combined SSU and Wiggle at ~$3.2BN ✓ Existing SSU shareholders to rollover 100% of their shares SPAC Sponsor, 2.9% WCRC Shareholders, 4.1% ✓ $372M PIPE, of which $50M committed by Yucaipa sponsor PIPE, 10.8% Ron Burkle SPAC, 10.0% Sources $M €M % Pro Forma Equity $2,716 €2,254 79.1% SSU
Slide 35: Peer valuation comparison
Primary 1P Broader 1P (1) 25% 26% 26% 23% 20% 27% 19% 28% 34% 5.4x 2.9x 2.8x 2.7x 2.3x 1.9x 1.7x 1.6x 1.6x 10.3x 9.9x 9.8x 8.8x 8.0x 6.3x 5.0x 4.5x 4.0x Source: Company Business Plan, FactSet. Market data as of 18-Oct-2021. Note: All financials calendarised to YE 30-Sep. Pro-forma including full yea
Slide 36: Summary
Process on track to be listed on NYSE by YE 2021 ✓ Leading global and scalable Sports e-commerce & technology platform ✓ Up to 100% upside to current valuation of primary 1P peers ✓ (1) Operating Cash Flow positive & well capitalized to pursue growth ✓ Multiple actionable, synergistic, near-term M&A
Slide 37: Appendix
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Slide 38: Management team
Stefanie Simone Stephan Alex Thomas Philipp Dorit Kniepen Kreyer Zoll Johnstone Neumann Rossner Schindler Deputy CFO Chief of Staff CEO CFO CTO CSO Chief People Officer Christian Sascha Thomas Olivier Dominic Philipp Tilman Miele Beyer Spengler Rochon Hoffmann Majcher Wink Founder & MD MD MD Founder
Slide 39: Adjusted EBITDA reconciliation
EUR million FY 2019A FY 2020A Loss for the period (35.9) (25.7) 1. Transaction costs from qualifying acquisition (+) Results from investments accounted for at equity 1 0.0 0.7 transactions or subsequent integration related (+) Finance costs 7.4 8.7 project costs directly associated with an acquired
Slide 40: Quarterly EBITDA reconciliation
(€M) Includes €10.1M of Includes €13.6M of consulting fees consulting fees related to public related to public listing listing FY Q3 9M YTD 2020 2021 2020 2021 Net Loss €2.5 (€12.9) (€15.6) (€24.9) Income Tax Benefit 2.1 3.0 (2.4) 4.6 Earnings before tax (EBT) €4.6 (€10.0) (€18.0) (€20.3) Depreciati
Slide 41: Strictly private and confidential
41 41 41 STRI STRICTLY CTLY PR PRIV IVA ATE & TE & CO CONFIDENTIAL NFIDENTIAL SIGNA SIGNA SP SPO ORTS RTS U UNITE NITED D41 41 41 STRI STRICTLY CTLY PR PRIV IVA ATE & TE & CO CONFIDENTIAL NFIDENTIAL SIGNA SIGNA SP SPO ORTS RTS U UNITE NITED D