Victorian Plumbing Group Plc · LSE:VIC
Victorian Plumbing — FY2021 Earnings Presentation
38 slides from Victorian Plumbing's earnings presentation, December 2021
Slide 1: Full year results presentation
Full year results presentation Year ended 30 September 2021 victorian plumbing pi
Slide 2: Disclaimer
DISCLAIMER The information and opinions provided in this presentation are provided as of the date of this presentation. Certain statements in this presentation constitute forward looking statements (including beliefs or opinions). Any statement in this presentation that is not a statement of histori
Slide 3: Agenda
AGENDA Today’s speakers V Overview FY21 financial results V Key drivers and strategic progress O&A Paul Meehan, CFO victorian plumbing..ou
Slide 4: Overview
OVERVIEW V Record results cas the business made a step change in scale, consolidating our position as the UK’s number one online choice for bathroom products Completed an IPO in June 2021 which sets the Group up for its next phase of growth Our well-defined strategy has three horizons: core B2C, tra
Slide 5: Victorian Plumbing is the largest online retailer of bathroom products in a growing market
VICTORIAN PLUMBING IS THE LARGEST ONLINE RETAILER OF BATHROOM PRODUCTS IN A GROWING MARKET What makes Victorian Plumbing so special? Digitally-native brand disrupting a large and traditional industry One-stop-shop to drive full basket purchases Product differentiation created through design and inno
Slide 6: Financial year ended September 2021
Financial year ended 30 September 2021
Slide 7: Financial highlights
FINANCIAL HIGHLIGHTS DO%o Revenue up 29% to £268.8m (2020*: £208.7m) 42% Gross profit up 42% to £130.5m (2020*: £92.0m) with Gross profit margin up five ° percentage points to 49% (2020*: 44%) 535% Adjusted EBITDA up 53% to £40.1m (2020*: £26.2m) with Adjusted EBITDA margin up fe] two percentage poi
Slide 8: Operational highlights
OPERATIONAL HIGHLIGHTS 17% 10% 13% 26% 4.3 victorian plumbing..ou Total orders up 17% to 906,000 (2020: 776,000) Average order value up 10% to £297 (2020: £269) Active customers up 13% to 638,000 (2020: 565,000) Marketing spend as a percentage of revenue of 26% (2020: 25%) Maintained our Excellent T
Slide 9: Year ended September 2021 shown as 2021
Year ended 30 September 2021 shown as 2021
Slide 10: Year ended September 2021 shown as 2021
Year ended 30 September 2021 shown as 2021
Slide 11: Year ended September 2021 shown as 2021
Year ended 30 September 2021 shown as 2021
Slide 12: Year ended September 2021 shown as 2021
Year ended 30 September 2021 shown as 2021
Slide 13: Income statement
INCOME STATEMENT Income statement (£m) 2021 2020* YoY % Revenue 268.8 208.7 29% Cost of sale (138.3) (116.7) 19% Gross profit 130.5 92.0 42% Underlying costs (90.4) (66.0) 37% Other operating income - 0.2 100% Adjusted EBITDA 40.1 26.2 53% Share-based payments (7,7) - nm. Exceptional items (9.4) - n
Slide 14: Cashflow and capital allocation
CASHFLOW AND CAPITAL ALLOCATION Year-on-year net cash reconciliation on 16 14.9 Financing/ Income tox Free cash 10.5 Opening Cash from cash exceptional v The Group ended the year with £32.7 million of cash, up from £10.5 million at Sept-20 v Prior to the IPO, dividends of £14.9m were paid and a £5.9
Slide 15: Statement of financial position
STATEMENT OF FINANCIAL POSITION i iti » Moonee of financial position an ee ver Yo Stock holding increased to mitigate well PPE & right of use assets 7.0 68 3% documented risks Total non-current assets 9.7 9.3 4% associated with supply chains. Inventories 32.4 23.0 41% Trade and other receivables 49
Slide 16: Key drivers and strategic progress
Slide 17: Our strategy
OUR STRATEGY We think about our strategy with reference to 3 horizons which are not time based Horizon1 Core B2C v Customer acquisition, new product development and innovation v Market growth further amplified by the current RMI cycle v Further market share gains, ongoing competitor weakness v Oppor
Slide 18: We provide an unrivalled choice of products
WE PROVIDE AN UNRIVALLED CHOICE OF PRODUCTS... V Increased the number of products stocked to over 24,000 SKUs V Over 125 brands including >100 third party brands and >25 own label brands Revenue by Category victorian plumbing..ou Two new premium brands added this year YODuURAVIT 18
Slide 19: And continue to invest in bold marketing
..- AND CONTINUE TO INVEST IN BOLD MARKETING... Television Adverts are creative and celebrity- focused to stand out Campaigns have been very popular and a driver for brand awareness V Target audience of media buying is 25-55 year olds with a focus on homeowners victorian plumbing..ou Email victorian
Slide 20: Which allows us to maintain our leading position
.- WHICH ALLOWS US TO MAINTAIN OUR LEADING POSITION vs leading online competitors 2021: Victorian Competitor Competitor Competitor Competitor 25 Plumbing ‘A B c D 2.0 15 10 OS 0.0 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Ma
Slide 21: We are investing in our platform
WE ARE INVESTING IN OUR PLATFORM Our in-house technology & infrastructure team are developing bespoke software solutions Ontrack to launch the re- platformed website mid-2022 VY New platform will allow more incremental changes that we can test at speed victorian plumbing..ou aa
Slide 22: Trade customers
TRADE CUSTOMERS Trade portal gives customers easy access to their account, which is supported by a dedicated account management team VY Prices shown to the customer through the portal incorporate the agreed customer discount, increasing transparency VY Work underway on an app to increase efficiency
Slide 23: Adjacent products
ADJACENT PRODUCTS Wall and floor tiles Y Over 570 different tile ranges as of September 2021 VY Revenue generated in the year of £3.4 million up from £2.9 million in 2020 Lighting Y Increased our supplier base for lighting Y Number of products available increased to over 500 victorian plumbing..ou 2
Slide 24: Making a splash in ESG
MAKING A SPLASH IN ESG We are early in our ESG journey, but we have identified three areas which we would like to focus on. Our reporting will look to align with TCFD and SASB frameworks Governance and ethics Y Pic Board meeting the Code requirements has been formed and a rhythm established quickly
Slide 25: Current trading and outlook
Slide 26: Current trading and outlook
CURRENT TRADING AND OUTLOOK Number of orders placed (rolling 7 days) ——2020 202k fockdown a Seasonal —202 { festrictions eased | Christmas decline von Feb Mors Apr May. dun Jul. Aug = Sep Oct. «Nove Orders placed growth over 2 years W5% . 150% 125% 100% 75% 50% 25% Covid acceleration Pre -pandemic 2
Slide 27: On track despite short term headwinds
ON TRACK DESPITE SHORT TERM HEADWINDS V Our business is built on good foundations. We have grown revenue rapidly over a number of years and operate with industry leading margins, driving a highly cash generative model with no debt This strong balance sheet is an advantage in a competitive market, su
Slide 28: Appendix
APPENDIX victorian
Slide 29: Year record
4 YEAR RECORD 2018 2019 2020 2021 Year to 30 September £m £m £m £m Revenue 117.4 151.4 208.7 268.8 Cost of sales (70.7) (89.6) (16.7) (138.3) Gross profit 46.7 61.8 92.0 130.5 Gross profit margin 40% 41% 44% 49% Underlying costs (42.7) (50.4) (66.0) (90.4) Other operating income : O1 0.2 = Adjusted
Slide 30: Cash flow statement
CASH FLOW STATEMENT Cash flow statement 2021 2020 Cash gen. from ops. before exceptionals 36.9 30.9 Cash flows from exceptionals (9.1) - Cash generated from operating activities 27.8 30.9 Income tax paid (3.4) (6.5) Net cash generated from operating activities 24.4 24.4 Purchase of intangible assets
Slide 31: Our journey to date
OUR JOURNEY TO DATE Operations move to Skelmersdale — Listed 16th in The Sunday Times Fast TRACK track 100? - fastest growing private companies Listed 24th in The ‘Sunday Times Fast Tech Hub opened in Manchester Track 100? - fastest growing private Victorian Plumbing begins First in Mark’s garden sh
Slide 32: Large and growing market opportunity
LARGE AND GROWING MARKET OPPORTUNITY Sales of core bathroom products and bathroom accessories in the UK Market value (£bn inclusive of VAT) UK home improvement and gardening e-commerce penetration( 50% 18 40% 40% 35% «38% 16 30% 14 avs 20% — 22%% A 7 Acceleration 20% - due to COVID-19 14% 12 10% 10
Slide 33: Online specialists are taking market share
ONLINE SPECIALISTS ARE TAKING MARKET SHARE, WITH VICTORIAN PLUMBING TAKING AN OUTSIZED SHARE Retail sales by channel CcY2015 cyY2019 CY2020 -Oppt Oth Pore! Builders! Other er Builders' Other Builders' merchants | ~2% merchants ~2% merchants ~1% 3% ide we Conot ~13% -5ppt DIY retailers Independent pi
Slide 34: Victorian Plumbing is the online market leader
VICTORIAN PLUMBING IS THE ONLINE MARKET LEADER Rapid market share expansion to become #1 online bathroom brand in the UK and #1 specialist bathroom brand Market share of bathrooms by revenue -3.3ppt +1.3ppt +2.4ppt -0.3ppt +2.0ppt +2.5ppt +0.7ppt -0.2ppt +0.1ppt -8.2ppt -3.8ppt Bag ly v2... H@MEBASE
Slide 35: One-stop shop for a customer's bathroom needs
ONE-STOP SHOP FOR A CUSTOMER’S BATHROOM NEEDS FY21 Revenue( by product category Shower Enclosures Other Bathroom Furniture Bathroom Suites Showers Toilets Radiators Taps Bathroom Baths Accessories ~24,000 sxus >125 sranas (as.at 15/04/21, unless stated otherwise) -orded on a dispatched basis victori
Slide 36: Strong stable of own & 3rd party brands
STRONG STABLE OF OWN & 38° PARTY BRANDS Own brand gross margin significantly higher than third party brands Selected own brands ay Selected third party brands >20 brands >100 brands mova cruze VALENCIA AREZZO GROHE x TS Roca crosswater SS mira HERITAGE’ BRISTAN SS BATHROOMS. ROPER RHODES’ jansgrone
Slide 37: Our business model
OUR BUSINESS MODEL Victorian Plumbing’s business model benefits from a virtuous cycle of investments in NPD & marketing building competitive moats y Marketing Investments Drive Traffic Sea Operating Leverage “Ss Superior Financial Performance Own Brand / NPD pw cides how rooming Better Margins a T S
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victorian plumbing.co.ux
Victorian Plumbing Group — FY2021 Earnings Presentation on 6ix