Douglas Ag · XETR:DOU
Douglas — Debt Investor Presentation (February 2022)
35 slides from Douglas's debt investor presentation, Feb 17, 2022
Slide 1: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS Düsseldorf, February 17, 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: Total like-for-like sales significantly above pre-COVID-19 level
TOTAL LIKE-FOR-LIKE SALES SIGNIFICANTLY ABOVE PRE-COVID-19 LEVEL – HIGH SALES LEVEL IN E-COM AND STRONG GROWTH IN BRICK & MORTAR Strong performance in Net sales growth of E-Com growth + 1%, Adjusted EBITDA Acquisition of online Christmas business 16.8% lfl vs. PY and sustaining its high increased by
Slide 5: Net Sales Development Q1 2021/22
NET SALES DEVELOPMENT Q1 2021/22 NET SALES LFL +10.9% VS. PRE-COVID-19-LEVEL In m€ GROUP TOTAL GROUP E-COMMERCE GROUP BRICK & MORTAR 1,307 1,173 +11.4% +16.8% lfl 866 739 +17.3% 433 437 +27.8% lfl +1.0% Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 › Strong performance despite Co
Slide 6: Adjusted EBITDA Development Q1 2021/22
ADJUSTED EBITDA DEVELOPMENT Q1 2021/22 In m€ GROUP TOTAL Strict cost discipline in personnel and operating expenses drives higher adjusted EBITDA with sustained margin despite 191 highly competitive environment in E-Commerce 171 191,1 Store Optimization Program: fully on track and delivering 171,1 l
Slide 7: E-Com and Brick & Mortar Complement Each Other
E-COM AND BRICK & MORTAR COMPLEMENT EACH OTHER E-COMMERCE SALES SHARE >30% IMPRESSIVE LONG-TERM E-COM GROWTH SALES SHARE E-COM AND BRICK & MORTAR NET SALES (In m€) 1,199 1,293 1,173 1,307 817 Dec 2021 LTM vs. Dec 2020 63.1% 66.5% CAGR LTM B&M 80.7% 585 423 383 324 261 180 36.9% 145 33.5% 106 69 E-Co
Slide 8: Douglas Expands Strong Market Position in E-Com Across Core Countries
DOUGLAS EXPANDS STRONG MARKET POSITION IN E-COM ACROSS CORE COUNTRIES (CY 2020/2021) Thanks to the Partner Program, DOUGLAS continues to win market share in Germany on a very high level DOUGLAS France expands 2020 2021 E-Commerce market leadership Decline of market share in Italy due to panel extens
Slide 9: E-Commerce: Strong Development of KPIs
E-COMMERCE: STRONG DEVELOPMENT OF KPI’S STRONG IMPACT BY PRIOR YEAR’S LOCKDOWNS IN DE, FR, PL, NL GROUP Q1 2021/22 (VS. PY) +1.0% +0.2%pts +1.0% E-Com net sales Average basket (incl. VAT) Conversion rate +4.1%pts +3.6%pts E-Com sales share Mobile sales share App sales share** New customers in E-Com*
Slide 10: Successful Partner Program in 5 Countries
SUCCESSFUL PARTNER PROGRAM IN 5 COUNTRIES NETHERLANDS LIVE SINCE OCT 2021 NUMBER OF PARTNER NUMBER OF PARTNERS PROGRAM SKUS (ALL COUNTRIES) (ALL COUNTRIES)* 274 234 101 101 Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 Partner Program live Partner Program upcoming FY 21/22 Q3 *Incl. Small brands via e
Slide 11: #ForwardBeauty.DigitalFirst Strategy Execution Update
#FORWARDBEAUTY.DIGITALFIRST STRATEGY EXECUTION UPDATE BEAUTY PLATFORM Brand positioning E-COMMERCE ONLINE SHOP PARTNER PROGRAM 11 ASSORTMENT CURATION / CRM Choice & innovation Inspiration & personalization SUPPLY CHAIN TECHNOLOGY Customer Operational excellence Data-driven culture Partner relationsh
Slide 12: Strategic Expansion into Online Pharmacy Market
STRATEGIC EXPANSION INTO ONLINE PHARMACY MARKET NEXT LOGICAL STEP IN LINE WITH CUSTOMER TRENDS Capitalizing on mega trends beauty and health in an aging European society › Convergence of beauty and health › Desire for a health-conscious lifestyle › Aging society stimulates growth in health market ›
Slide 13: High Attractiveness and Strategic Fit of Pharmacy Market
HIGH ATTRACTIVENESS AND STRATEGIC FIT OF PHARMACY MARKET Highly attractive Perfect strategic fit market potential1 to DOUGLAS ▪ Size 2021: €160bn pharmacy ▪ Customers: High addressable market in DOUGLAS core customer base via ~50m Beauty countries, of which ~€59bn in Card holders² results in high Ge
Slide 14: Acquisition of Disapo Apotheke B.V.
ACQUISITION OF DISAPO APOTHEKE B.V. UNIQUE OPPORTUNITY TO ENTER ONLINE PHARMACY BUSINESS ▪ Integration of Disapo into DOUGLAS Partner Program ▪ Start with dermacosmetics and OTC products in Germany in April 2022 ▪ Extension into Rx with introduction of ▪ Located in The Netherlands next e-prescriptio
Slide 15: Powerful Extension of Douglas' Core
POWERFUL EXTENSION OF DOUGLAS’ CORE Building the leading European beauty & health platform while adding step by step health competence to the DOUGLAS brand 15
Slide 16: Closer Look Q1 2021/22 Financials
CLOSER LOOK Q1 2021/22 FINANCIALS
Slide 17: Net Sales Development by Segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q1 2021/22 Total, in m€ DACHNL FRANCE 573 615 +7.3% GROUP +11.7% lfl 287 325 +13.2% 1,307 1,173 +11.4% +14.7% lfl Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 +16.8% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE 193 208 +7.7% 159 120 +32.6% +24.7% lfl +36.4% lfl Q1
Slide 18: Net Sales Development by Segment: E-Commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q1 2021/22 E-Commerce, in m€ DACHNL FRANCE 285 293 +2.9% GROUP 88 76 433 437 -13.6% +1.0% Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 31 32 +2.7% 36 29 +24.1% Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1
Slide 19: Net Sales Development by Segment: Brick & Mortar
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR Q1 2021/22 Brick & Mortar, in m€ DACHNL FRANCE 322 288 +11.8% 245 199 +22.7% GROUP +21.7% lfl 866 +29.1% lfl 739 +17.3% Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE +27.8% lfl 161 175 +8.7% 124 90 +38.1% +30.4% lfl
Slide 20: Adjusted EBITDA Development by Segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q1 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 92 87 GROUP -5.0% 57 67 +18.1% 16.1% 14.2% 191 19.8% 20.6% 171 +11.6% Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 14.6% 14.6% SOUTHERN EUROPE CENTRAL EASTERN EUROPE 28 38 Adjusted 19 +47.4% 27 +42.3% EBITDA Margi
Slide 21: P&L Overview
P&L OVERVIEW Q1 2021/22 Reported EBITDA: In m€ Q1 2020/21 Q1 2021/22 ∆ Increased significantly over prior year due to higher Net sales 1,172.9 1,306.9 11.4% net sales, sustained gross profit margin and general Gross profit 513.0 560.4 9.2% cost discipline Gross profit margin 43.7% 42.9% -0.9% Adjust
Slide 22: Net Working Capital and Capex
NET WORKING CAPITAL AND CAPEX ONGOING IMPROVEMENTS AND INVESTMENT DISCIPLINE In m€ NET WORKING CAPITAL CAPEX 188 15 10 -32.6% -59.7% 76 31.12.2020 31.12.2021 Q1 2020/2021 Q1 2021/2022 › Strong limit control and use of RELEX in DE, AT & CH, in IT & › Cautious spending policy against the background of
Slide 23: Free Cash Flow
FREE CASH FLOW IMPACTED BY EBITDA AND WORKING CAPITAL In m€ ADJUSTED FCF DEVELOPMENT FREE CASH FLOW BRIDGE Q1 2021/22 310 273 297 Q1 2019/20 Q1 2020/21 Q1 2021/22 113 29 36 297 1 296 0 296 191 14 1 2 3 Adj EBITDA CAPEX Working TAX Others Adj. Free EBITDA Free Cash M&A Free Cash 4 Capital Cash Flow A
Slide 24: Liquidity Headroom and Leverage
LIQUIDITY HEADROOM AND LEVERAGE ONGOING COST AND CASH DISCIPLINE CASH BALANCE TOTAL NET LEVERAGE Improved liquidity In m€ Seasonal peak at the end of important Christmas quarter with high cash inflows 8.4x 8.0x Ongoing cost and cash 5.6x 5.5x discipline 623 Low cash capex in Q1 +36% Shifted payments
Slide 25: SOP Implementation Overview
SOP IMPLEMENTATION OVERVIEW FULLY ON TRACK, 85% OF SAVINGS ACHIEVED STATUS 31.12.2021 STORE CLOSURES / LEASE FTE REDUCTIONS RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES1 (# OF STORES) Contracts terminated Store 55% re-negotiation 48% Stores closed 81% in closure stores completed (#
Slide 26: Summary Q1
SUMMARY Q1 Like-for-like sales significantly above pre-Covid-19 level E-com maintains high level while Brick & Mortar recovers Double-digit growth of adjusted EBITDA Robust liquidity situation DOUGLAS strategy #FORWARDBEAUTY.DigitalFirst is in full execution Execution of Store Optimization Program w
Slide 27: Appendix
Slide 28: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS In Q1 2021/22 primarily for infrastructure optimisation; prior-year especially refinancing (m€) Q1 2020/21 Q1 2021/22 FY 2019/20 FY 2020/21 PPA: Former acquisitions Reported EBITDA 148.4 190.1 176.1 19.3 COVID-19: Consulting fees 5.3 3.7 19.5
Slide 29: Deep Dive into LFL Net Sales Development
DEEP DIVE INTO LFL NET SALES DEVELOPMENT QUARTERLY OVERVIEW LIKE FOR LIKE NET SALES DEVELOPMENT Q1 2020/21 Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 DACHNL -3.3% -22.1% -3.5% 2.6% 11.7% France -6.5% -7.6% 28.7% 10.6% 14.7% Southern Europe -12.1% -4.8% 35.4% 8.1% 24.7% Central Eastern Europe -8.8%
Slide 30: 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 31: Selected Segmental KPIs
SELECTED SEGMENTAL KPIS REPORTED EBITDA CAPEX Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 DACHNL 79.6 80.9 DACHNL 2.5 2.5 France 56.4 70.6 France 1.6 1.5 Southern Europe 16.7 33.2 Southern Europe 1.4 1.4 Central Eastern Europe 23.8 37.7 Central Eastern Europe 3.0 0.3 Consolidation 0.0 0.0 Consolidat
Slide 32: Cash Flow Statement
CASH FLOW STATEMENT Cash flow from CASH FLOW STATEMENT operating activities Increased due to EBITDA increase and higher sales especially in brick & mortar (m€) Q1 2020/21 Q1 2021/22 Cash flow from Net cash flow from operating activities 277.7 307.9 investing activities Reduced due to responsible spe
Slide 33: Net Working Capital
NET WORKING CAPITAL NET WORKING CAPITAL Net Working Capital Continues to be a key focus; 286 252 efficient management supported by AI-based 188 184 software RELEX NWC as % of LTM net sales 76 Inventory Lower inventory partially due to delayed deliveries by suppliers, Dec 20 Mar 21 Jun 21 Sep 21 Dec
Slide 34: Evolution of Capital Structure
EVOLUTION OF CAPITAL STRUCTURE CASH AND DEBT STRUCTURE AS OF 31 DECEMBER 2021 Senior PIK Notes: m€ x Adj. x Mgmt. Adj. Maturity Pricing EBITDA1 EBITDA² › Type of interest payments is generally at Cash and Equivalents 465 Douglas’ discretion › Douglas intends to RCF (€170m Volume) 0 Jan 26 E+4.75% ge
Slide 35: Premium Store Network Footprint
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings* 2,371 Decrease in number of stores driven by SOP 141 Portfolio realignment across Europe will 1,983 -11% result in further reduction in number of stores 133 31 Dec 2020 (m€) – 2,230 31 Dec 2021 1,850 Store opening