Birkenstock Holding Plc · NYSE:BIRK
Birkenstock — FY2023 Earnings Presentation
30 slides from Birkenstock's earnings presentation, Jan 18, 2024
Slide 1: Birkenstock Financial Results FY2023
BIRKENSTOCK: January 18, 2024 BIRKENSTOCK FINANCIAL RESULTS FY2023
Slide 2: Forward-looking statements
Certain statements in this Presentation may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securiti
Slide 3: Birkenstock Overview
BIRKENSTOCK BIRKENSTOCK OVERVIEW
Slide 4: Birkenstock Overview - A Unique Value Creation Model
BIRKENSTOCK BIRKENSTOCK OVERVIEW — A UNIQUE VALUE CREATION MODEL 250-YEAR OLD PURPOSE BRAND * — Category Ownership | Footbed business * Archive, Icons, predictable business * — TAM: Every human being LOYAL BRAND FANS High consumer penetration (average U.S. consumer owning 3.6 pairs) | VERTICALLY INT
Slide 5: Financial Results FY2023
BIRKENSTOCK FINANCIAL RESULTS FY2023
Slide 6: Financial Results FY2023 at a Glance
BIRKENSTOCK FINANCIAL RESULTS FY2023 AT A GLANCE IN € MILLION, UNLESS OTHERWISE STATED REVENUE DTC REVENUE | PENETRATION UNITS SOLD PRO-FORMA EPS (ADJ.) (€) GROSS PROFIT (ADJ.) | MARGIN AVERAGE SELLING PRICE Note: Al comparisons are to fiscal year ended September 30,2022. Gross Prof (Aa), EBITD (A)
Slide 7: Long-Term Revenue CAGR of 20% Achieved in FY2023
BIRKENSTOCK: LONG-TERM REVENUE CAGR OF 20% ACHIEVED IN FY2023 IN € MILLION, UNLESS OTHERWISE STATED Note: 720-73: Consolidated IFRS numbers at Birkenstock Group Limited level: Y18-19: Consolidated German GAAP numer t Birkenstock GH & Co. KG; FY14-17: Consolidated financial statements of Birkenstock
Slide 8: Double-Digit Revenue Growth Across All Segments & Channels
BIRKENSTOCK: DOUBLE-DIGIT REVENUE GROWTH ACROSS ALL SEGMENTS & CHANNELS IN € MILLION, UNLESS OTHERWISE STATED AMERICAS EUROPE APMA 805 930 192 +20%' +18%! +27%! CHANNELS
Slide 9: Increased Unit Growth to 6%, Accelerated ASP by 14%
BIRKENSTOCK INCREASED UNIT GROWTH T0 6%, ACCELERATED ASP BY 14%
Slide 10: Outstanding Gross Profit (Adj.) Margin Confirmed in FY2023
BIRKENSTOCK OUTSTANDING GROSS PROFIT (ADJ.) MARGIN CONFIRMED IN FY2023 IN € MILLION, UNLESS OTHERWISE STATED 926 | 62.1% in raw materials and labor in production, largely offset by * v | Neue Y2023 margin driven by inflation FY2022 margin elevated de to eal sales channel mix and further sales price
Slide 11: S&D Development in Line with DTC Increase
BIRKENSTOCK 5&D DEVELOPMENT IN LINE WITH DTC INCREASE AS % OF REVENUE SALES & DISTRIBUTION EXP. (ADJ.) GENERAL ADMINISTRATIVE EXP. (ADJ.) €444M €81M 5.4% (70)bp Primarily driven by higher costs in relation to above-average growth of OTC revenue 29.8% +190bp Not: Sales &Distiution (A) and Genera Admi
Slide 12: Maintained Strong EBITDA (Adj.) Margin of 30%+
BIRKENSTOCK MAINTAINED STRONG EBITDA (ADJ.) MARGIN OF 30%+ Elevated EBITDA (Ad) margin of 35% in FY2022. Marin uplift was mainly driven by early sales price increases in FY2022 ahead of anticipated inflation in cost of sales, which, toa large degree, became effective in FY2023, -— 35.0% 7 7 ° 290bp
Slide 13: EPS Reflects Strong Value Creation Year-over-Year
BIRKENSTOCK EPS REFLECTS STRONG VALUE CREATION YEAR-OVER-YEAR IN€, UNLESS OTHERWISE STATED 0.93 Pro-Forma (Adj.) EPS (Basic/Diluted) FY2022 FY2023 Note: ro-Forma (A) EPS count gost PO of 1878 milion shares For a econciliation othe most comparable IFRS measure, please see the Appendix to this present
Slide 14: Rapid Deleveraging Following 2021 Transaction
BIRKENSTOCK RAPID DELEVERAGING FOLLOWING 2021 TRANSACTION NET DEBT & NET LEVERAGE! | IN € MILLION, UNLESS OTHERWISE STATED >6.0x 5.3X Post-IPQ: Early partial repayments of 1 + $450 million USO Term Loan B (Nov-23) 3.7X H + €100 milton Vendor Loan (Oct-23) 3.1x i a Net Debt 1,554 1,621 M9 - Transacti
Slide 15: Significantly Improved Inventory to Revenue Ratio in FY2023
BIRKENSTOCK SIGNIFICANTLY IMPROVED INVENTORY TO REVENUE RATIO IN FY2023 TRADE WORKING CAPITAL | IN MILLION, UNLESS OTHERWISE STATED 564 489 322 “ant she 3) 595 ——— carry-over products, and b) contracted value / allocated to Inventory 336 customer orders 309 Trade and other receivables 799 7 66 92 Tr
Slide 16: Strong Cash Flow Generation Providing Optionality
BIRKENSTOCK: STRONG CASH FLOW GENERATION PROVIDING OPTIONALITY IN € MILLION FY2022 — FY2023 Operating Cash Flow 234 359 thereof: Funds from operations! 404 439 thereof: Changes in working capital! (169) (80) Investing Cash Flow (72) (101) Financing Cash Flow (105) (199) thereof: Repayment of loans a
Slide 17: Outlook FY2024
BIRKENSTOCK OUTLOOK FY2024
Slide 18: FY2024 Key Initiatives to Capture White Space Potential
BIRKENSTOCK: FY2024 KEY INITIATIVES TO CAPTURE WHITE SPACE POTENTIAL REGIONAL EXPANSION APMA GLOBAL RETAIL EXPANSION CAPACITY EXPANSION = Significant mono-brand store = Opening of 20+ new owned = Continue Pasewalk ramp-up and roll-out with owned stores and Tetail stores across all regions Goerlitz e
Slide 19: Guidance FY2024: Profitable Growth Trajectory Continues
BIRKENSTOCK: GUIDANCE FY2024: PROFITABLE GROWTH TRAJECTORY CONTINUES ~17-18% INCREASE @ constant currencies 1 €1.74-1.76 BILLION REVENUE @ constant currencies €1.49 BILLION REVENUE FY2023 FY2024E Note: FY2024E Revenue and EBITDA (Ad) at constant curences arenon-1FRS measures BIRKENSTOCK OUTLOOK FY20
Slide 20: Appendix
BIRKENSTOCK: APPENDIX
Slide 21: Income Statement
BIRKENSTOCK: INCOME STATEMENT IN € MILLION Year ended September 30, Quarter ended September 30, 2022 2023 2022 2023 Revenues 1,243 1,492 322 375 Cost of sales (493) (566) (116) (130) Gross profit 750 926 206 245 Selling and distribution expenses (347) (456) (110) (146) General administrative expense
Slide 22: Balance Sheet
BIRKENSTOCK: BALANCE SHEET IN € MILLION September 30, September 30, 2022 2023 2022 2023 _ Goodwill 1,674 1,594 TOTAL SHAREHOLDERS’ EQUITY 2,358 2,401 _Intangible assets (other than goodwill) 1,815 1,706 _ __ Loans and borrowings 1,920 1,816 5 Property, plant and equipment 205 286 S Lease liabilities
Slide 23: Cash Flow Statement
BIRKENSTOCK: CASH FLOW STATEMENT IN € MILLION Year ended September 30, 2022 2023 Net profit (loss) 187 5 Depreciation & amartization 81 83 Loss on disposal af property, plant and equipment 0 - Change in expected credit loss 0 - Finance cost, net 113 107 Nel exchange differences (46) 36 Non-cash oper
Slide 24: Reconciliation of Non-IFRS Measures (1/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (1/7) REVENUE | IN € MILLION Year ended Quarter ended September 30, September 30. Group 2023 2023 Revenues 1,487 73 Add (Less) US. Dollar impact’ (6) 13 Canadian Dollar impact” 3 2 ther” 5 2 Constant currency revenue” 1489 390 Revenue growth, constant
Slide 25: Reconciliation of Non-IFRS Measures (2/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (2/7) GROSS PROFIT | IN € MILLION Year ended September 30, Quarter ended September 30, 2022 2023 2022 2023 Gross profit 750 926 206 145 Add (Less) Adjustments: Effect of applying the acquisition method of accounting for The Transaction under |FRS! 2b
Slide 26: Reconciliation of Non-IFRS Measures (3/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (3/7) OPERATING EXPENSES | IN € MILLION Year ended September 30, Quarter ended September 30, 2022 2023 2022 2023 Selling and distribution expenses 347 456 110 146 ‘Add (Less) Adjustments: Share-based compensation expenses” - (7) - (5) Other* (0) (5) :
Slide 27: Reconciliation of Non-IFRS Measures (4/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (4/7) EBITDA | IN € MILLION Year ended September 30, Quarter ended September 30, 2022 2023 2022 2023 Net profit (lass) 137 5 58 (28) Income tax expense 63 79 5 28 Finance cost, net 113 107 23 26 Depreciation & amortization 81 83 a} a2 EBITDA hh 3hh 11
Slide 28: Reconciliation of Non-IFRS Measures (5/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (5/7) NET PROFIT | IN € MILLION Year ended September 30, Quarter ended September 30, 2022 2023 2022 2023 Net profit (loss) 137 5 58 (28) ‘Add (Less) Adjustments: Effect of applying the acquisition method of accounting for the Transaction under IFRS? n
Slide 29: Reconciliation of Non-IFRS Measures (6/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (6/7) EARNINGS PER SHARE | IN €, UNLESS OTHERWISE STATED Year ended September 30, Quarter ended September 30, 2022 2023 2022 2023 Net profit (loss! (in € million) 137 oh) 58 (28) Net profit (loss) (Adj.) (in € million) 175 207 50 25 Pro-Forma shares o
Slide 30: Reconciliation of Non-IFRS Measures (7/7)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (7/7) NET DEBT | IN € MILLION Year ended September 30, 2021 2022 2023 Loans and borrowings (Non-current) 1,182 1,920 1,816 USD Term Loan (current) 7 9 7 Cash and cash equiva.ents 235 307 344 Net Debt 1,554 1,621 1419 APPENDIX 30