Douglas Ag · XETR:DOU
Douglas — Q2 2021/22 Earnings Presentation
42 slides from Douglas's earnings presentation, May 25, 2022
Slide 1: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS Düsseldorf, May 25, 2022
Slide 2: Notice to Recipients
NOTICE TO RECIPIENTS This presentation and any materials distributed in connection herewith (together, The information in this Presentation does not constitute investment, legal, expressly disclaims any such obligation, to update, revise or amend any forward- the “Presentation”) have been prepared b
Slide 3: Today's Speakers
TODAY’S SPEAKERS Group CFO Group CEO 3
Slide 4: Significant Sales & Earnings Growth in Q2 – Net Sales Exceed Pre-Covid Levels
SIGNIFICANT SALES & EARNINGS GROWTH IN Q2 – NET SALES EXCEED PRE-COVID LEVELS DOUGLAS continues Net sales growth of Lfl store sales more Adjusted EBITDA Disapo transaction growth path in Q2 39% lfl vs. PY and 12% than doubled vs. PY; improved to +€25m successfully closed – 2021/22 as B&M lfl vs. pre
Slide 5: Net Sales Development Q2 2021/22
NET SALES DEVELOPMENT Q2 2021/22 In m€ GROUP TOTAL GROUP E-COMMERCE GROUP BRICK & MORTAR 719 551 +30.7% 471 +39.0% lfl 291 +81.3% 250 260 -14.3% +117.3% lfl Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 › Strong performance despite geopolitical tensions, › As expected, online sal
Slide 6: Adjusted EBITDA Development Q2 2021/22
ADJUSTED EBITDA DEVELOPMENT Q2 2021/22 In m€ GROUP TOTAL Higher sales combined with ongoing cost discipline in 30 personnel and operating expenses drives positive adjusted 25 25 EBITDA and margin 20 15 Store Optimization Program: fully on track and leading to 25 10 lower rental and personnel expense
Slide 7: E-Com and Brick & Mortar Complement Each Other
E-COM AND BRICK & MORTAR COMPLEMENT EACH OTHER IMPRESSIVE LONG-TERM E-COM GROWTH SALES SHARE E-COM AND BRICK & MORTAR NET SALES (in m€) 1,199 728 551 719 47.1% 817 Mar 2022 LTM vs. 65.3% CAGR FY 2020/21 B&M 82.9% 585 423 383 324 261 52.9% 180 34.7% 145 106 69 E-Com 17.1% Q2 2018/19 Q2 2020/21* Q2 20
Slide 8: E-Commerce Maintains High Level
E-COMMERCE MAINTAINS HIGH LEVEL PRIOR YEAR’S FIGURES STRONGLY IMPACTED BY LOCKDOWNS GROUP Q2 2021/22 (VS. PY) -14.3% 0.3%pts +2.5% E-Com net sales Conversion rate Average basket (incl. VAT) +2.9%pts +1.4%pts E-Com sales share Mobile sales share App sales share** New customers in E-Com* Number of vis
Slide 9: Douglas Expands Strong Market Position in Germany
DOUGLAS EXPANDS STRONG MARKET POSITION IN GERMANY (Q2 2021/22) DOUGLAS continues to win market share in Germany at a very high level B&M is KEY growth driver due to Covid lockdown shift 2021 2022 DOUGLAS France and Italy see slight losses, partly due to store closures Germany France Italy 9 Source:
Slide 10: #ForwardBeauty.DigitalFirst Strategy Execution Update
#FORWARDBEAUTY.DIGITALFIRST STRATEGY EXECUTION UPDATE BEAUTY PLATFORM Brand positioning E-COMMERCE ONLINE SHOP PARTNER PROGRAM 10 ASSORTMENT CURATION / CRM Choice & innovation Inspiration & personalization SUPPLY CHAIN TECHNOLOGY Customer Operational excellence Data-driven culture Partner relationsh
Slide 11: Successful Partner Program in Countries
SUCCESSFUL PARTNER PROGRAM IN 5 COUNTRIES. ITALY PLANNED GO LIVE IN JUNE NUMBER OF PARTNERS ALL NUMBER OF PARTNER COUNTRIES* SKUS ALL COUNTRIES* 236 155k 135k 146 Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 Partner Program live Partner Program upcoming FY 21/22 Q2 *Incl. Small brands via enablers; S
Slide 12: Social Commerce | Douglas Live
SOCIAL COMMERCE | DOUGLAS L I V E Q2 2021/22 LIVE SHOWS NEW L I V E Live in Annual spend DE, AT, CH, compared to average NL, IT, ES, PL and FR E-Commerce shopper Building up the creator RO is live from 31/03 economy – addressing micro and macro Influencers and DOUGLAS experts Customers aged 16-30 In
Slide 13: Online Pharmacy: Integration of Disapo
ONLINE PHARMACY: INTEGRATION OF DISAPO Closing of transaction in April ✓ • Start advertising of pharma assortment on DOUGLAS platform Integration of Disapo assortment well on track ✓ • European roll-out ready for H2 • Technical preparation for Partner Program Germany: Launch of Disapo e-prescription
Slide 14: Douglas Brands Important Pillar of the Douglas Assortment
DOUGLAS BRANDS IMPORTANT PILLAR OF THE DOUGLAS ASSORTMENT STRATEGIC RELEVANCE JARDIN BOHÈME › Superior profitability › Premium affordable fine fragrance offer › Strong NES growth (+56 %) vs. Q2 PY › Top rotations on industry level for bestsellers › TOP 6 “supplier” within Douglas DE in Q2* › TOP 18
Slide 15: Douglas Sustainability Report 2021
DOUGLAS SUSTAINABILITY REPORT 2021 15
Slide 16: Closer Look: Q2 2021/22 Financials
CLOSER LOOK Q2 2021/22 FINANCIALS
Slide 17: Net Sales Development by Segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q2 2021/22 Total, in m€ DACHNL FRANCE 357 148 247 +44.3% 123 +20.2% GROUP 719 + 43.9 %LfL 551 +30.7% + 29.4% LfL Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 118 124 90 +5.6% 62 +44.3% + 39.0 % LfL + 32.3 % LfL Q2 2020/21 Q
Slide 18: Net Sales Development by Segment: E-Commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q2 2021/22 E-Commerce, in m€ DACHNL FRANCE 219 177 -19.4% GROUP 29 31 +7.1% 291 250 -14.3% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 +100.7% SOUTHERN EUROPE CENTRAL EASTERN EUROPE vs. pre- COVID 24 22 18 20 -11.3% +9.3% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q
Slide 19: Net Sales Development by Segment: Brick & Mortar
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR Q2 2021/22 Brick & Mortar, in m€ DACHNL FRANCE +545.5% 180 117 GROUP 94 +24.4% 471 28 +617.2% LfL + 37.6% LfL Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 +81.3% 260 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 100 105 +4.9% +82.0% + 117.3 % LfL 69 38 + 39.1%
Slide 20: Adjusted EBITDA Development by Segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q2 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 28 20 GROUP 13 25 14 5.6% 7.8% 10.9% 13.8% Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 -0.3% 3.5% SOUTHERN EUROPE CENTRAL EASTERN EUROPE 9 Adjusted -1 5 EBITDA Margin -8.0% -1.0% 8.3% 9.7% -1 Q2 2020/21 Q2 2021/2
Slide 21: P&L Overview Q2 2021/22
P&L OVERVIEW Q2 2021/22 In m€ Q2 2020/21 Q2 2021/22 ∆% Reported EBITDA: Net sales 550.5 719.3 30.7% Improved substantially compared to prior year due to Gross profit 213.2 317.0 48.7% higher net sales, higher gross profit margin and general cost Gross profit margin 38.7% 44.1% 13.8% discipline Opera
Slide 22: Net Working Capital and Capex
NET WORKING CAPITAL AND CAPEX ONGOING IMPROVEMENTS AND INVESTMENT DISCIPLINE In m€ NET WORKING CAPITAL CAPEX 282 21 221 21.6% 16 Mar 21 Mar 22 Q2 2020/21 Q2 2021/22 › Strong limit control and use of RELEX in DE, AT & CH, in IT & › Ongoing cautious spending policy against the background of PL for E-C
Slide 23: Free Cash Flow
FREE CASH FLOW IMPACTED BY WORKING CAPITAL AND OTHERS In m€ ADJUSTED FCF DEVELOPMENT FREE CASH FLOW BRIDGE Q2 2021/22 Q2 2019/20 Q2 2020/21 Q2 2021/22 -90 25 -22 -144 -175 -186 5 -50 -47 -186 0 -233 -233 1 2 3 4 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF POST M
Slide 24: Liquidity Headroom and Leverage
LIQUIDITY HEADROOM AND LEVERAGE ONGOING COST AND CASH DISCIPLINE CASH BALANCE TOTAL NET LEVERAGE1 Improved liquidity In m€ In m€ Prior year impacted by sales declines due to full or partial 452 10.3 lockdowns in all Core Countries 8.1 Funding of Disapo 6.6 6.5 acquisition: 160 Add-on to Term Loan B
Slide 25: SOP Implementation Overview
SOP IMPLEMENTATION OVERVIEW FULLY ON TRACK, 97% OF SAVINGS ACHIEVED STATUS 31.03.2022 STORE CLOSURES / LEASE FTE REDUCTIONS1 RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES1 (# OF STORES) Contracts terminated Store 56% re-negotiation 56% Stores closed 91% in closure stores completed (
Slide 26: Summary Q2
SUMMARY Q2 Net sales increase driven by strong growth in B&M business E-commerce slowed, but sales remain more than twice as high as in pre-Covid period Higher sales in conjunction with ongoing cost discipline in personnel and operating expenses drives positive adjusted EBITDA Robust liquidity situa
Slide 27: Appendix
Slide 28: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS In Q2 2021/22 primarily related to infrastructure optimization and the acquisition of Disapo (m€) Q2 2020/21 Q2 2021/22 H1 2020/21 H1 2021/22 PPA: Reported EBITDA -164.9 -21.6 -16.5 168.4 Former acquisitions Consulting fees 18.5 6.7 23.8 10.4
Slide 29: Selected Segmental KPIs Q2 2021/22
SELECTED SEGMENTAL KPIS Q2 2021/22 In m€ REPORTED EBITDA CAPEX Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 DACHNL -58.3 20.8 DACHNL 2.2 2.7 France -9.1 20.3 France 2.1 3.1 Southern Europe -47.4 -32.7 Southern Europe 0.9 1.5 Central Eastern Europe 1.3 8.7 Central Eastern Europe 1.6 2.0 Consolidation
Slide 30: Deep Dive into LFL Net Sales Development
DEEP DIVE INTO LFL NET SALES DEVELOPMENT QUARTERLY OVERVIEW LIKE FOR LIKE NET SALES DEVELOPMENT Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 DACH - NL -22.1% -3.5% 2.6% 11.7% 43.9% France -7.6% 28.7% 10.6% 14.7% 29.4% Southern Europe -4.8% 35.4% 8.1% 24.7% 32.3% Central Eastern Europe -5.1
Slide 31: Net Sales Development by Segment H1 2021/22
NET SALES DEVELOPMENT BY SEGMENT GROUP H1 2021/22 Total, in m€ DACHNL FRANCE 960 820 +17.2% GROUP 410 473 2,015 +15.3% 1,723 +16.9% +20.4% LfL + 18.9%LfL H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 310 332 + 23.2% LfL +6.9% 250 183 +36.6% + 27.6% LfL H1 2020/21
Slide 32: Net Sales Development by Segment: E-Commerce H1
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE H1 2021/22 E-Commerce, in m€ DACHNL FRANCE 504 459 -8.9% 117 107 -8.5% GROUP 724 676 -6.7% H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 49 52 53 57 +5.1% +7.7% H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 H1 2020/21 H1
Slide 33: Net Sales Development by Segment: Brick & Mortar H1
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR H1 2021/22 Brick & Mortar, in m€ DACHNL FRANCE + 31.7% LfL 502 316 +58.8% 293 362 GROUP +23.2% 1,336 + 73.5% LfL 998 +33.9% H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 261 280 + 54.5% LfL +7.3% + 49.5% LfL 193 127
Slide 34: Adjusted EBITDA Development by Segment H1 2021/22
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT H1 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 106 115 +9.0% 88 GROUP 70 +24.6% 216 12.9% 12.0% 18.5% 17.1% 170 H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 3.0% 8.0% 47 Adjusted 32 +46.7% EBITDA Margin 27 9.8% 10.7% 9 +1
Slide 35: Selected Segmental KPIs H1 2021/22
SELECTED SEGMENTAL KPIS H1 2021/22 In m€ REPORTED EBITDA CAPEX H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 DACHNL 21.3 101.6 DACHNL 4.7 5.2 France 47.4 90.9 France 3.7 4.7 Southern Europe -30.7 0.5 Southern Europe 2.3 2.9 Central Eastern Europe 25.2 46.4 Central Eastern Europe 4.6 2.4 Consolidation
Slide 36: Overview Segmental Structure
OVERVIEW SEGMENTAL STRUCTURE BRICK & MORTAR, NEW STRUCTURE SINCE Q1 2021/22 DACHNL FRANCE Austria France Germany Monaco Switzerland The Netherlands CENTRAL EASTERN EUROPE Bulgaria SOUTHERN EUROPE Croatia Andorra Czech Republic Italy Estonia Portugal Hungary Spain Latvia Lithuania Poland Romania Slov
Slide 37: P&L Overview H1 2021/22
P&L OVERVIEW H1 2021/22 H1 2020/21 H1 2021/22 ∆% Reported EBITDA: Increased significantly over prior year due to higher net Net sales 1,723.4 2,015.2 16.9% sales, higher gross profit margin and general cost Gross profit 726.2 877.4 20.8% discipline esp. in personnel costs Gross profit margin 42.1% 4
Slide 38: Free Cash Flow H1 2021/22
FREE CASH FLOW H1 2021/22 In m€ ADJUSTED FCF DEVELOPMENT 183 FREE CASH FLOW BRIDGE H1 2021/22 154 111 216 -36 H1 2019/20 H1 2020/21 H1 2021/22 -31 -24 -14 111 -48 64 0 64 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF POST M&A Adjustments (pre M&A) (Cash effect) 17
Slide 39: Cash Flow Statement
CASH FLOW STATEMENT H1 2021/22 Cash flow from CASH FLOW STATEMENT operating activities Increased due to EBITDA increase and higher sales in brick & mortar (m€) H1 2020/21 H1 2021/22 Cash flow from investing activities Net cash flow from operating activities 45.3 94.3 Reduced due to responsible spend
Slide 40: Net Working Capital
NET WORKING CAPITAL NET WORKING CAPITAL Net Working Capital Continues to be a key focus; In m€ 282 efficient management 248 supported by AI-based 2.3% 221 184 software RELEX NWC as % of LTM net sales 9.4% 8.0% 5.9% 6.5% Inventory 76 Lower inventory due tighter inventory management, 31.03.2021 30.06.
Slide 41: Evolution of Capital Structure
EVOLUTION OF CAPITAL STRUCTURE CASH AND DEBT1 STRUCTURE AS OF 31 MARCH 2022 Senior PIK Notes: m€ x Adj. x Mgmt. Adj. Maturity Pricing In m€ EBITDA1 EBITDA² › Type of interest payments is generally at Cash and Equivalents 292 Douglas’ discretion › Douglas intends to RCF (€170m Volume) 0 Jan 26 E+4.75
Slide 42: Premium Store Network Footprint
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings* Decrease in number of stores driven by SOP Portfolio realignment across Europe will result in further reduction in number of stores 2,322 1,957 31 Mar 2021 140 -15.7% (m€) – 133 31 Mar 2022 Store openings 12 2,182