Signa Sports United N.v. · OTC:SSUNF
Signa Sports United — Q3 FY22 Earnings Presentation
25 slides from Signa Sports United's earnings presentation, Aug 16, 2022
Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Disclaimer
This presentation (“Presentation”) is provided by SIGNA Sports United N.V. (“SSU”, and together with its consolidated subsidiaries, the “Group”) for informational purposes only. The information contained herein does not purport to be all-inclusive and neither the Company nor any of its or their cont
Slide 3: Pro forma LTM key metrics
(1) (2) PF LTM Revenue PF LTM Gross Margin PF LTM Adjusted EBITDA margin of LTM Net Revenue PF LTM Active Customers PF LTM Net Orders PF LTM AOV Source: Company information. Note: SSU financial year end as of 30 Sep 21 and LTM refers to twelve-month period ending 30 Jun 22. Metrics pro forma for WCR
Slide 4: Business Update
44 BUSINESS UPDA| pice PERFE us
Slide 5: Q3 FY22 business update highlights
– Although generally improving, continued inbound shortage in high-priced items including e-bike inventory amidst supply disruptions, affecting growth potential – Global consumer discretionary spending strongly impacted by inflationary pressures and geopolitical factors, especially in Europe – Mid/l
Slide 6: FY22 set-up: limited visibility on supply, consumer confidence
FY22 Set-up: limited visibility on supply, robust consumer confidence o Prudent build-up of inventory where possible to 2.41 mitigate potential future supply shocks (e.g. Omicron) 0.1 o Unforeseen shock in inflation and deterioration in consumer sentiment materially impacting disposable spending (7.
Slide 7: Strong megatrends underpin long-term growth trajectory
– Strong megatrends underpin long-term growth trajectory 324 o C-19 accelerated consumer participation SSU reported o E-commerce resuming long-term trajectory growth vs. Q3 FY19 99 o Sports retail relatively low online penetration - to grow c. 12-15% p.a. over coming years – Current market dislocati
Slide 8: Financial Performance
Slide 9: Operating KPIs pro forma for closed acquisitions
Pro forma for closed acquisitions • Recently closed acquisitions (M) meaningfully augment scale of SSU platform to 7.0M active Q3 FY20 Q3 FY21 Q3 FY22 customers YoY Growth YoY Growth YoY Growth Q3 FY22 CAGR • First-time organic QoQ decline vs. Q3 FY19 in active customers (legacy SSU) in Q3 FY22, on
Slide 10: Q3 FY22 financial results
(M) • Recent acquisitions drive significant scale: +29% net Q3 FY20 Q3 FY21 Q3 FY22 9M FY20 9M FY21 9M FY22 revenue reported growth in YoY Growth YoY Growth YoY Growth YoY Growth YoY Growth YoY Growth Q3 FY22, supported by WCRC contribution 9M FY22 Q3 FY22 CAGR CAGR vs. 9M FY19 vs. Q3 FY19 • Net rev
Slide 11: Adjusted EBITDA margin drivers
Adj. EBITDA 5.3% Tough comp with Covid-boosted Q3 FY21 (Q3 FY21) Impacted by lingering supply chain issues and Owned brand expansion, scale in procurement, (-) COGS promotional activity to drive categories and normalization in promotional activity manage inventory Logistics efficiency to increase wi
Slide 12: Liquidity and debt summary
Cash on Balance Sheet (Q3 FY22) €55 – SSU to issue €100M senior convertible notes to SIGNA Holding 2 GmbH by September 30, 2022 Debt Summary o Upsize option of additional €200m convertible notes for Revolving Credit Facility €100 2 acquisition purposes Bank Loans €8 (1) €40 SIGNA Holding Working Cap
Slide 13: Outlook
Slide 14: Updated FY22 guidance
(M) €1,362 – Updated net revenue guidance, €1,150 - €1,200 on the back of softening €872 discretionary spending and macro fundamentals in core markets, while supply constraints not fully eased yet FY21A PF FY21 PF FY22E – The Company anticipates FY22 adjusted EBITDA margin to be in a (4.0)% – (5.5)%
Slide 15: Operational priorities
- Sharp focus on customer unit economics - Target promotional activity towards existing customer base - Emphasis on core markets with lower cost to serve - Contain and pass cost inflation to the customer - Leverage scale to improve supplier terms - Further optimize fulfilment network - Rigorous appr
Slide 16: Key takeaways
✓ Turbulent environment to accelerate further consolidation on both retail and brand sides ✓ Intact structural megatrends behind specialist sports retail ✓ SSU will leverage its scale to emerge from this period better positioned with suppliers and consumers ✓ SSU capitalized to focus on investments
Slide 17: Long-term margin targets
Dynamic pricing E-commerce Improving wholesale economics Gross Margin 38.9% 37 – 39% Owned brand share Increased automation Personnel (10.1%) (8) – (10) % Logistics efficiencies Logistics (10.3%) (8) - (9)% Marketing (7.0%) (5) – (6) % Growing repeat share IT / Other (6.2%) (4) – (6) % Close to targ
Slide 18: Upcoming investor conferences
Wolfe Research Virtual Fall Consumer Conference Citi Global Technology Conference September 8, 2022 September 22, 2022 New York Virtual Raymond James Consumer Conference UBS Future of Electric Mobility October 3, 2022 September 15, 2022 New York Virtual NYSE Consumer Virtual Investor Access Day Sept
Slide 19: Appendix
Slide 20: Quarterly KPIs reported and pro forma
SSU (Reported View) Pro Forma SSU Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 PF Q2 PF Q3 PF Q4 PF Q1 PF Q2 PF Q3 PF FY20 FY20 FY20 FY20 FY2020 FY21 FY21 FY21 FY21 FY2021 FY22 FY22 FY22 FY21 FY21 FY21 FY21 FY2021 FY22 FY22 FY22 LTM Active Customers (M) 3.2 3.3 3.6 3.9 3.9 4.2 4.5 5.0 5.1 5.1 5.3 7.4 7.0 7.0
Slide 21: Adjusted EBITDA reconciliation
Q3 Q3 9M 9M FY21 FY22 FY21 FY22 Net Loss (€12.9) (€52.5) (€24.9) (€254.1) Income Tax Benefit 3.0 (6.6) 4.6 (14.6) Earnings before tax (EBT) (€10.0) (€59.0) (€20.3) (€268.7) Share of results of associates 0.3 0.3 0.9 0.9 Finance income (0.1) (3.6) (0.1) (19.5) Finance costs 4.8 12.3 8.6 16.0 Deprecia
Slide 22: Share structure and liquidity
# of Shares % of Total Cash on Balance Sheet (Q3 FY22) €55 SIGNA International Sports Holding GmbH 167.7 49.6% Debt Summary Bridgepoint Europe IV Limited 24.4 7.2% Revolving Credit Facility €100 R+V Lebensversicherung Aktiengesellschaft 23.4 6.9% Bank Loans €8 Other 122.5 36.2% (2) €40 SIGNA Holding
Slide 23: Senior convertible notes terms
– €100 million – Upsize option for the Noteholder of up to €200 million to fund SSU’s execution of its M&A strategy – Senior Unsecured Convertible Notes, convertible into ordinary shares of SIGNA Sports United N.V. – Ranking: Senior to all classes of equity; Pari-passu with other senior debt (if any
Slide 24: KPI definitions
KPI Definition Customers with one or more purchases within the last 12 months, irrespective of Active Customers cancellations or returns Number of visits including mobile and website. Cut-off at 30 minutes of inactivity and at date Total Visits change. Not cut off at channel change during session Ne
Slide 25: SSU Investor Relations
SSU Investor Relations https://investor.signa-sportsunited.com SSU Investors Contact Alima Levy a.levy@signa-sportsunited.com +49 174 7304938 SIGNA SPORTS UNITED 25