SRP Groupe SA · EURONEXT:SRP
SRP Groupe SA — Showroomprivé — FY2015 Earnings Presentation
32 slides from SRP Groupe SA's earnings presentation, Feb 16, 2016
Slide 1: We are Showroomprive.com FY2015 Results
WE ARE SHOWROOMPRIVE.com FY2015 RESULTS February, 16th 2016
Slide 2: Business Update and 2015 Results Highlights
I BUSINESS UPDATE AND 2015 RESULTS HIGHLIGHTS
Slide 3: 2015: A Year Full of Achievements
2015: A YEAR FULL OF ACHIEVEMENTS A STRONG AND PROFITABLE GROWTH €443m net sales and €24m EBITDA +27% net sales growth and 5.4% EBITDA margin, up 0.9%pt MORE MEMBERS, MORE BUYERS, MORE BRANDS THE LAUNCH OF SEVERAL PROMISING INITIATIVES Innovative conversion tools: Infinity & unique basket #Collectio
Slide 4: Continued Success in Recruiting and Driving Loyalty with Members and Brands
CONTINUED SUCCESS IN RECRUITING AND DRIVING LOYALTY WITH MEMBERS AND BRANDS MEMBERS TRAFFIC & MOBILE BRANDS 24.6 MM MEMBERS 92% OF FREE TRAFFIC >750 NEW BRANDS (+4.4 MM) (vs. 600 in 2014) 2.9 BUYERS 8.0 MM 73% RETURNING (+0.5 MM) APP DOWNLOADS BRANDS IN 2015(2) 72% OF SALES 48% OF SALES 76% OF SALES
Slide 5: Launch of Several Promising Initiatives
LAUNCH OF SEVERAL PROMISING INITIATIVES UNLIMITED FREE DELIVERY FOR OUR PRIVATE LABEL OUR FASHION-TECH €20 PER YEAR (1) BUILT AROUND OUR VALUES START-UP INCUBATOR LAUNCHED IN OCTOBER 2015 FOR REAL WOMEN, IN REAL LIFE 6 START - UPS VERY POSITIVE FIRST RESULTS BASED ON BIG DATA ANALYTICS WEARABLE AWAR
Slide 6: A Year of Strong Profitable Growth
A YEAR OF STRONG PROFITABLE GROWTH Recurring cash from operating Net revenue & growth EBITDA & margin activities before tax post Capex(1) € million € million € million 5.4% 4.4% 110% +27% OF EBITDA +53% 442,8 26,1 23,7 22,1 349,8 15,5 FY14 FY15 FY14 FY15 FY14 FY15 2015 GUIDANCE 2015 MARGIN GUIDANCE
Slide 7: France and International Performance
FRANCE AND INTERNATIONAL PERFORMANCE France International MEMBERS(1) 16.8 MM (+21 (+21%) 7.8 MM (+24 (+24%) BUYERS(1) 2.4 MM (+24 (+24%) 0.5 MM (+10 (+10%) ORDERS(1) 10.0 MM (+30 (+30%) 1.7 MM (+24 (+24%) REVENUE PER BUYER(2) 155 (+4 €155 (+4%) 132 (+9 €132 (+9%) NET INTERNET REVENUES(2) 370 MM (+29
Slide 8: Q4 2015 and FY2015 Results
II Q4 2015 AND FY2015 RESULTS
Slide 9: Revenues Growth Underpinned by Continued Strong Performance of France
REVENUES GROWTH UNDERPINNED BY CONTINUED STRONG PERFORMANCE OF FRANCE Revenues breakdown € million Net Revenue Q4 2015 27% €154m (+23%) yoy growth 442,8 24% yoy growth 9,6 63,2 20% 243,4 349,8 4,2 11,3 196,0 31,7 3% 52,7 6,1 30,8 370,0 29% 207,6 31% 285,8 159,1 FY2014 FY2015 H2-2014 H2-2015 France I
Slide 10: Growth of All Customer KPIs and Increasing Member Engagement
GROWTH OF ALL CUSTOMER KPIS AND INCREASING MEMBER ENGAGEMENT Revenues underpinned by success in converting Higher product quality offer members into buyers and inducing more repeat purchases leading to improved ARPB Million € Average Internet revenues Members (cumulative) Buyers Orders per buyer +22
Slide 11: Continued Profitability Improvement Driven by Operating Leverage
CONTINUED PROFITABILITY IMPROVEMENT DRIVEN BY OPERATING LEVERAGE EBITDA € million +0.9%pt Total 4.4% 5.4% 4.0% 4.7% EBITDA margin 23,7 15,5 11,4 7,7 30,9 19,2 16,7 11,5 (3,6) (7,2) (3,7) (5,3) FY2014 FY2015 H2-2014 H2-2015 France EBITDA margin France International % FY2014 FY2015 H2-2014 H2-2015 +1.
Slide 12: Attractive Gross Margins
ATTRACTIVE GROSS MARGINS Gross margins Product mix evolution € million % of gross Internet revenues 42,0% 40,5% 41,6% 40,4% 2014 2015 23% 19% 40% 44% 179,2 146,9 77% 81% 98,2 60% 56% 81,6 FY2014 FY2015 H2-2014 H2-2015 Fashion vs Firm vs Fashion vs Firm vs Non Fashion consignment Non Fashion consignm
Slide 13: Operating Leverage Across All Cost Structure
OPERATING LEVERAGE ACROSS ALL COST STRUCTURE Opex evolution Marketing costs In € million and as % of net revenues (as % of net revenues) 6,3% 6,1% 7,4% 7,8% FY2014 FY2015 H2-2014 H2-2015 -2,2%PT Logistics costs (as % of net revenues) 38,2% 38,4% 36,0% 36,5% 24,3% 23,2% 23,8% 22,8% FY2014 FY2015 H2-2
Slide 14: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION EBITDA to net change in cash bridge – 2015 € million Net Cash Position 31/12/2015 99 110% CONVERSION 55,3 (1,2) (6,4) 26,1 48,9 23,7 9,1 (1) 1.4% of net sales (4,0) (2) (0,3) (9,4) (5,1) 7,5 EBITDA Recurring Capex Other Recurring Non Non Taxes Net CF IPO Other Net change
Slide 15: Vision and Outlook
III VISION AND OUTLOOK
Slide 16: Our Opportunity Is Huge
OUR OPPORTUNITY IS HUGE OPPORTUNITY OPPORTUNITY FOR MORE VOLUME FOR MORE MEMBERS WITH BRANDS AND BUYERS Structural excess inventory Secular eCommerce/ mCommerce trend Vast untapped market of new brands to recruit New and disruptive way to shop resonating with changing Multiple opportunities to grow
Slide 17: Addressing the Large and Under-Penetrated European Online Fashion Market
WE ARE ADDRESSING THE LARGE AND UNDER- UNDER- PENETRATED EUROPEAN ONLINE FASHION MARKET Large online fashion market… …yet under-penetrated Online retail spending by category in Europe (2014) Online retail penetration by category in Europe (2014) €41bn €32bn 15% 10% €13bn 5% 5% €4bn Fashion Consumer
Slide 18: Our Vision, Method and Priorities for 2016
OUR VISION, METHOD AND PRIORITIES FOR 2016 OUR Continue to grow, expand and disrupt apparel retail staying true to our core “fashion & innovation” DNA VISION Disciplined and harmonious growth around our 3 pillars: OUR Members Brands Operations METHOD A test & learn approach with minimal upfront inve
Slide 19: Continue to Drive Growth with New Initiatives
CONTINUE TO DRIVE GROWTH WITH NEW INITIATIVES Boost engagement & loyalty Reinforce our business SEARCH ENGINE PRIVATE LABEL MORE BIG DATA DRIVE TO STORE AND PREDICTIVE OFFER ANALYSIS CONVENIENCE AND USER M&A EXPERIENCE 19
Slide 20: International: Become More Local to Drive Conversion and Profitability
INTERNATIONAL: BECOME MORE LOCAL TO DRIVE CONVERSION AND PROFITABILITY Our international footprint today Our priorities for 2016 SPAIN POLAND Open local sourcing offices Opened Jul-2010 Opened Jul-2013 (Madrid, Milan) ITALY UK Opened Mar-2011 Opened Mar-2011 Consolidate our offer PORTUGAL NETHERLAND
Slide 21: Guidance Summary
GUIDANCE SUMMARY 2016 MEDIUM TERM c. €750m NET REVENUES €525-555m by 2018 (y-o-y growth) (+19% – +25%) o/w 25% from international 5.8 - 6.2% 7.5 - 8.0% EBITDA MARGIN by 2018 c. 8.5% in France c. 9.5% in France 100%+ CASH CONVERSION (1) CASH FLOW 1.3 - 1.5% Capex AS % NET REVENUES 1 Excluding excepti
Slide 22: Appendices
IV APPENDICES
Slide 23: We Convert Members into Buyers and Drive Repeat Purchases Increasingly Quickly
WE CONVERT MEMBERS INTO BUYERS AND DRIVE REPEAT PURCHASES INCREASINGLY QUICKLY Our members convert to buyers increasingly A significant share of first-time buyers become rapidly and in greater proportion repeat buyers…increasingly quickly Member to buyer conversion (France) First-time buyer to repea
Slide 24: We Are All About Driving Member Engagement and Loyalty
WE ARE ALL ABOUT DRIVING MEMBER ENGAGEMENT AND LOYALTY Attractive economics (1) Our members have significant lifetime value Gross internet revenues generated from Q1 2014 member cohort (France) c.30% Conversion of members …AND into buyers within 2 years 29x COUNTING! , GROSS REVENUE/ €6,0m MARKETING
Slide 25: Selected Key Performance Metrics
SELECTED KEY PERFORMANCE METRICS 2013 2014 2015 %Growth H2- H2-14 H2- H2-15 %Growth CUSTOMERS METRICS Total Members (in thousands) 16,205 20,178 24,568 21.8% 20,178 24,568 21.8% France 11,518 13,893 16,787 20.8% 13,893 16,787 20.8% International 4,687 6,285 7,781 23.8% 6,285 7,781 23.8% Cumulative B
Slide 26: Profit & Loss Statement
PROFIT & LOSS STATEMENT Income Statement Data (€ thousands) 2013 2014 2015 %Growth H2- H2-14 H2- H2-15 %Growth Net revenues 256,859 349,791 442,832 26.6% 195,960 243,414 24.2% Cost of goods sold -147,664 -202,929 -263,679 29.9% -114,345 -145,180 27.0% Gross margin 109,195 146,862 179,153 22.0% 81,61
Slide 27: Segmental Information
SEGMENTAL INFORMATION Revenues (€ thousands) 2013 2014 2015 %Growth H2- H2-14 H2- H2-15 %Growth INTERNET REVENUES France 206,905 285,845 370,012 29.4% 159,062 207,589 30.5% International 38,295 52,682 63,236 20.0% 30,780 31,664 2.9% Total Internet revenues 245,2 338,527 433,248 28.0% 189,842 239,253
Slide 28: Cash Flow Statement
CASH FLOW STATEMENT Cash flow statement data (€ thousands) 2013 2014 2015 H2- H2-14 H2- H2-15 Net income for the period 5,676 5,870 5,143 2,444 0,085 Adjustments for non-cash items 2,638 3,956 8,640 2,338 6,308 Cash flow from operations before finance 8,314 9,826 13,783 4,782 6,393 costs and income
Slide 29: Balance Sheet
BALANCE SHEET Balance Sheet Data (€ thousands) 2013 2014 2015 NON--CURRENT ASSETS NON Goodwill 81,576 81,576 81,576 Other intangible assets 26,901 27,726 28,861 Tangible assets 10,583 14,141 14,833 Other non-current assets 1,032 1,256 1,180 Total non- non-current assets 120,092 124,699 126,450 Curre
Slide 30: Bridge of Gross to Net Sales
BRIDGE OF GROSS TO NET SALES (in € thousands) 2013 2014 2015 H2- H2-14 H2- H2-15 Total gross Internet sales1 327,600 458,745 591,674 257,541 329,092 VAT2 -51,056 -72,223 -93,515 -40,449 -55,456 Revenue recognition impacts3 -35,053 -51,647 -68,900 -28,998 -36,388 Non-internet revenue and other4 15,36
Slide 31: Disclaimer
DISCLAIMER This presentation contains only summary information and does not purport to be comprehensive. This document may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assump
Slide 32: Thank You
@ THANK YOU. f & showroomprive-com "4 ‘a te. - a