Global Fashion Group S.a. · XETR:GFG
Global Fashion — Investor Presentation (September 2023)
22 slides from Global Fashion's investor presentation, September 2023
Slide 1: Fashion & Lifestyle Destination in LATAM, SEA & ANZ
#1 FASHION & LIFESTYLE DESTINATION IN LATAM, SEA & ANZ COMPANY PRESENTATION September 2023
Slide 2: Who We Are
WHO WE ARE 2 COMPANY PRESENTATION: SEPTEMBER 2023
Slide 3: Established Leading Positions Across Our Markets
ESTABLISHED LEADING POSITIONS ACROSS OUR MARKETS GROUP LATAM SEA ANZ NMV GROWTH & MARKETPLACE EXPANSION NMV (€M) FY22 +49%1 1,615 NMV (€M) 1,615 556 412 646 1,178 ADJ. EBITDA MARGIN (3.7)% (5.8)% 0.7% 2.4% 2019 2022 MARKETPLACE SHARE OF NMV +15 ppt ORDERS (M) 27.9 12.6 8.7 6.7 34% 19% ACTIVE CUSTOME
Slide 4: We Are the Only Local Multi-Brand Fashion Ecommerce Platform of Scale
WE ARE THE ONLY LOCAL MULTI-BRAND FASHION ECOMMERCE PLATFORM OF SCALE IN OUR MARKETS FASHION FOCUS Fashion Brands Adidas H&M Nike Gap Uniqlo SHEIN Zara Department Stores David Jones Myer OFFLINE Lojas Renner Riachuelo ONLINE Robinsons SM Store General Merchandisers Amazon Lazada Mercado Libre Shopee
Slide 5: Multiple Opportunities While Our Regions Are at Different Stages of Growth
MULTIPLE OPPORTUNITIES WHILE OUR REGIONS ARE AT DIFFERENT STAGES OF THEIR GROWTH LATAM SEA ANZ 2022 FASHION & LIFESTYLE MARKET SIZE TOTAL ONLINE ~€100bn ~€8bn ~€100bn ~€15bn ~€40bn ~€10bn TOTAL POPULATION 330m 460m 30m TARGET POPULATION1 ~70m ~90m ~20m (% of total) ~20% ~20% ~80% ACTIVE CUSTOMERS 6m
Slide 6: Online Adoption Will Continue to Drive Long-Term Growth
ONLINE ADOPTION WILL CONTINUE TO DRIVE LONG-TERM GROWTH Long-term SUBSTANTIAL OPPORTUNITY TO GROW ONLINE ~50% OUR MARKETS HAVE VARYING DISPOSABLE INCOME LEVELS FASHION & LIFESTYLE ONLINE PENETRATION ANNUAL PER CAPITA FASHION & LIFESTYLE SPEND Weighted to GFG’s 2022 NMV By Country ~30% LATE MARKET GR
Slide 7: We Offer a Broad and Relevant Assortment
WE OFFER A BROAD AND RELEVANT ASSORTMENT APPAREL FOOTWEAR SPORT ACCESSORIES OTHER 37% 14% 26% 12% 11% 10,000+ FASHION & LIFESTYLE OWN BRANDS EXCLUSIVE BROAD SEGMENTS global and local brands categories enrich the assortment offerings mainstream to premium Note: Category splits based on FY2022 NMV sha
Slide 8: We Partner With the Top Global & Local Brands
WE PARTNER WITH THE TOP GLOBAL & LOCAL BRANDS WHO EMBRACE OUR HYBRID MODELS TOP 30 BRANDS / BRAND GROUPS BY NMV 2022 CORNERSTONE OF OUR BRAND PORTFOLIO TOP 30 BRANDS / BRAND GROUPS BY NMV IN 20221 39% of Group NMV 83% of brands on both Retail and Marketplace 93% of brands use Platform Services2 (1)
Slide 9: Flexible Business Models Tailored to Brands' Needs
FLEXIBLE BUSINESS MODELS TAILORED TO BRANDS’ NEEDS 66% NMV 34% NMV MARKETPLACE Brand retains ownership of stock RETAIL FULFILLED BY CROSS-DOCKING DROP SHIPMENT GFG holds stock and fulfils orders Brand holds stock; GFG collects & Brand holds, packs and delivers to consolidates for last mile delivery
Slide 10: Growing Platform Services Offering to Drive Stronger Brand Relationships
GROWING PLATFORM SERVICES OFFERING TO DRIVE STRONGER BRAND RELATIONSHIPS MARKETPLACE BRAND.COM BENEFITS PLATFORM SERVICES • Increase stickiness of our Global Fashion Platform, for brands and customers OPERATIONS BY GFG MARKETING BY GFG DATA BY GFG • Create incremental revenue streams • Margin enhanc
Slide 11: Well-Invested Infrastructure
WELL-INVESTED INFRASTRUCTURE LATAM SEA FAST DELIVERY AT LARGE SCALE 4 FULFILMENT CENTRES 3 FULFILMENT CENTRES Elevates customer experience Brazil Chile Colombia Argentina Malaysia Indonesia Philippines ANZ STREAMLINED FULFILMENT PROCESS 1 FULFILMENT CENTRE Attracts brand partners to leverage Austral
Slide 12: H1/23 Results
H1/23 RESULTS 12 COMPANY PRESENTATION: SEPTEMBER 2023
Slide 13: 2023 Focus on Cost Actions Whilst Markets Are Uncertain
2023 FOCUS ON COST ACTIONS WHILST MARKETS ARE UNCERTAIN MARKETS ENTERING 2023 GFG INITIATIVES IN PLACE UNCERTAIN MACRO CAREFUL MANAGEMENT OF INVENTORY LEVELS INFLATIONARY ENVIRONMENT DRIVE MARKETPLACE & PLATFORM SERVICES LOWER CONSUMER SENTIMENT RESTRICT CAPITAL INVESTMENT AND OVERHEADS DISCIPLINED
Slide 14: Weaker Demand in H1 Impacted Volumes and Profitability
WEAKER DEMAND IN H1 IMPACTED VOLUMES AND PROFITABILITY €649.9m 41.6% (9.5)% NMV GROSS PROFIT MARGIN ADJ. EBITDA MARGIN (11.2)% yoy1 (1.5)ppt yoy (5.5)ppt yoy 10.1m 10.5m 2.4 ACTIVE CUSTOMERS ORDERS ORDER FREQUENCY (19.0)% yoy (24.0)% yoy (1.2)% yoy (1) Constant currency growth rate. 14 COMPANY PRESE
Slide 15: Executing Our Strategy in a Challenging Macro Environment Across Our Markets
EXECUTING OUR STRATEGY IN A CHALLENGING MACRO ENVIRONMENT ACROSS OUR MARKETS Change on H1/221 H1/23 NMV (€M) H1/23 ACTIVE CUSTOMERS2 (M) 260.0 5.4 217.3 172.6 2.6 2.1 (16.8)% (12.2)% (5.2)% (23.7)% (22.0)% 1.7% LATAM SEA ANZ LATAM SEA ANZ H1/23 REVENUE (€M) H1/23 GROSS MARGIN (%) 184.1 44.0% 40.8% 4
Slide 16: Our Progress as a Platform Business
OUR PROGRESS AS A PLATFORM BUSINESS MARKETPLACE FULFILLED BY GFG & CROSS-DOCKING PLATFORM SERVICES SHARE OF NMV SHARE OF MARKETPLACE SHIPPED ITEMS SHARE OF REVENUE +4ppts +4ppts +1.4ppts 39% 35% 38% 4% 34% 2% H1/22 H1/23 H1/22 H1/23 H1/22 H1/23 16 COMPANY PRESENTATION: SEPTEMBER 2023
Slide 17: Careful Management of Inventory With H1 Impacted by Lower Demand
CAREFUL MANAGEMENT OF INVENTORY WITH H1 IMPACTED BY LOWER DEMAND INVENTORY, TOTAL NET OF PROVISIONS (€M) (33)% yoy1 €212m €187m €171m €135m Dec-21 Jun-22 Dec-22 Jun-23 Aged Inventory (>180 days) as a % of Gross Inventory 17% 22% 23% 26% (1) Constant currency growth rate. 17 COMPANY PRESENTATION: SEP
Slide 18: Applying Efficiency Measures to Address Current Cost Deleverage
APPLYING EFFICIENCY MEASURES TO ADDRESS CURRENT COST DELEVERAGE COSTS % OF NMV1 H1/19 H1/20 H1/21 H1/22 H1/23 19-23 FULFILMENT 17.0% 15.6% 15.6% 16.0% 16.1% (0.9)ppt MARKETING 8.0% 6.8% 8.0% 6.9% 6.5% (1.5)ppt TECH & ADMIN 13.5% 12.9% 10.7% 12.2% 14.7% 1.2ppt NMV GROWTH YOY2 23.8% 11.0% 36.9% 2.2%
Slide 19: Further Strength in Liquidity Position With August Convertible Bond Repurchases
FURTHER STRENGTH IN LIQUIDITY POSITION WITH AUGUST CONVERTIBLE BOND REPURCHASES (€M) H1/22 H1/23 PRO-FORMA CASH BALANCE Adj. EBITDA (20.9) (40.1) (€M) FUNDING Cash Lease Costs (9.8) (9.9) 562 OPERATIONS Working Capital (26.4) (1.9) (73) 467 TOTAL (57.1) (51.9) (22) (74) 392 Tech Capex (15.7) (11.5)
Slide 20: Updated FY2023 Guidance Reflects Greater Discounting and Fixed Cost Deleverage
UPDATED FY2023 GUIDANCE REFLECTS GREATER DISCOUNTING AND FIXED COST DELEVERAGE DESPITE COST ACTIONS NMV REVENUE ADJ. EBITDA CAPEX (15)-(10)% c.€0.9bn (8)-(6)% c.€30m c.€1.3-1.4bn LONGER TERM ADJ. EBITDA BREAKEVEN 2024 AMBITIONS: NORMALISED FREE CASH FLOW POSITIVE AT NMV OF €2.2 to 2.5bn Note: At 30
Slide 21: Q&A
Q&A 21 COMPANY PRESENTATION: SEPTEMBER 2023
Slide 22: Disclaimer
DISCLAIMER Certain statements included in this document are forward-looking statements. Forward-looking statements can typically be identified by the use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” or other words of simil
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