Birkenstock Holding plc · NYSE:BIRK
Birkenstock — Q3 2024 Earnings Presentation
23 slides from Birkenstock's earnings presentation, Aug 29, 2024
Slide 1: Birkenstock Financial Results Q3 FY24
BIRKENSTOCK: August 29, 2024 BIRKENSTOCK FINANCIAL RESULTS Q3 FY24
Slide 2: Forward-looking statements
Certain statements in this Presentation may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securiti
Slide 3: Financial Results Q3 FY24
BIRKENSTOCK FINANCIAL RESULTS 03 FY24
Slide 4: Financial Results Q3 FY24 at a Glance
BIRKENSTOCK FINANCIAL RESULTS Q3 FY24 AT A GLANCE IN € MILLION, UNLESS OTHERWISE STATED REVENUE B2B REVENUE DTC REVENUE DTC PENETRATION GROSS PROFIT | MARGIN ADJUSTED EBITDA | MARGIN ADJUSTED NET PROFIT ADJUSTED EPS (€) NET LEVERAGE (X LTM ADJ. EBITDA") Note: Unless otherwise stated, all comparisons
Slide 5: Continued Revenue Growth in Line with Long-Term CAGR
BIRKENSTOCK: CONTINUED REVENUE GROWTH IN LINE WITH LONG-TERM CAGR OF 20% IN € MILLION, UNLESS OTHERWISE STATED CAGR FY2014 - LTM 03 FY24: 20% | 1,492 1,243 962 48 722 728 152 570 292 364 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (03 FY24 LIM Not: FY2020-LTMO3 FY24: Consolidated IFRS numbers
Slide 6: Record Revenue of €565M Driven by All Segments & Channels
BIRKENSTOCK: RECORD REVENUE OF €565M DRIVEN BY ALL SEGMENTS & CHANNELS IN € MILLION, UNLESS OTHERWISE STATED AMERICAS EUROPE APMA 283 217 64 +15% +19% +41% CHANNELS BIRKENSTOCK
Slide 7: ~60% Gross Profit Margin Despite Growth Investments
BIRKENSTOCK ~60% GROSS PROFIT MARGIN DESPITE GROWTH INVESTMENTS IN € MILLION, UNLESS OTHERWISE STATED +15% | (220) ——— | 336 | 59.5% =a 2921 61.7% hie Gross Profit | Margin 03 FY23 03 FY24 BIRKENSTOCK FINANCIAL RESULTS 03 FY24
Slide 8: Reduced S&D Expense Ratio Driven by Channel Mix
BIRKENSTOCK REDUCED S&D EXPENSE RATIO DRIVEN BY CHANNEL MIX AS % OF 3 FY24 REVENUE ADJUSTED SELLING & DISTRIBUTION ADJUSTED GENERAL ADMINISTRATION EXPENSES: €149M EXPENSES: €25M increase vs 03 FY23is largely driven by 26.4% somes 4.5% (220)bp | +160bp Note: Adjusted Seng & Distribution expenses and
Slide 9: Industry Leading EBITDA Margin of 33% in Q3 FY24
BIRKENSTOCK INDUSTRY LEADING EBITDA MARGIN OF 33% IN Q3 FY24 AS % OF 03 FY24 REVENUE 34.4% (120bp) Reflects the planned, temporary under-absorption and ramp-up project costs al our new facilities in Pasewalk and Arauca. 30bp Slightly higher EBITOA margin from increased BIB share vs. prior yer. Decre
Slide 10: Adjusted EPS of €0.49 in Q3 FY24
BIRKENSTOCK ADJUSTED EPS OF €0.49 IN Q3 FY24, UP DOUBLE-DIGITS (%) IN€, UNLESS OTHERWISE STATED | +11% 1 0.49 0.44 Adjusted EPS (Basic/Diluted) 03 FY23 03 FY24 Note: Adjusted EPS (ssicliluted) is anon-1FRS measure For a reconciliation to the mast comparable IFRS measure please se the Appendix to thi
Slide 11: Strong Inventory-to-Sales Ratio Improvement vs. Q3 FY23
BIRKENSTOCK STRONG INVENTORY-TO-SALES RATIO IMPROVEMENT VS. Q3 FY23 TRADE WORKING CAPITAL | IN MILLION AND AS % OF LTM REVENUE 674 | 39% 587 | 41% 564 | 38% + €114 million raw materials / WIP included in inventory balance + Largest part of finished goods are a) carry-over products, and b) alan 619]
Slide 12: Strong Q3 Cash Generation Reduces Leverage to 2.1x
BIRKENSTOCK STRONG Q3 CASH GENERATION REDUCES LEVERAGE TO 2.1X NET DEBT & NET LEVERAGE | IN € MILLION, UNLESS OTHERWISE STATED 1 FY24: Early partial repayments of f (37)% * A new financing agreement was signed effective August 2,202, for 3.3x a new syndicated credit facility consisting of @€375 mill
Slide 13: Operating Cash Flow Drives Q3 Cash Generation to €229 Million
BIRKENSTOCK OPERATING CASH FLOW DRIVES Q3 CASH GENERATION TO €229 MILLION IN € MILLION Note: threo to} BIRKENSTOCK FINANCIAL RESULTS 03 FY24 Q3 FY23 FY24 Operating Cash Flow 237 281 t/o: Funds from operations 153 185 t/o: Changes in working capital 83 96 Investing Cash Flow (30) (17) Financing Cash
Slide 14: Appendix
BIRKENSTOCK: APPENDIX
Slide 15: Income Statement
BIRKENSTOCK: INCOME STATEMENT IN € MILLION | UNAUDITED YTD 01-03 03 FY23 FY24 FY23 FY24 Revenue W117 1,349 473 565 Cost of sales (437) (557) (181) (229) Gross profit 681 792 292 336 Selling and distribution expenses (310) (366) (137) (149) General administration expenses (87) (82) (32) (27) Foreign
Slide 16: Balance Sheet
BIRKENSTOCK: BALANCE SHEET IN € MILLION | UNAUDITED 04 a3 04 3 FY23 FY24 FY23 FY24, _ Goodwill 1,594 1,587 TOTAL SHAREHOLDERS EQUITY 2,401 2,641 Intangible assets (other than goodwill) 1,706 1,681 ___Leans and borrowings 1316 1679 3 Property, plant and equipment 409 475 = Lease liabilities 103 139 S
Slide 17: Cash Flow Statement
BIRKENSTOCK: CASH FLOW STATEMENT IN € MILLION | UNAUDITED ym a-03 FY FZ FY FZ Net profit (loss) 103 139 a 5 Depreciation & amortization 7] n nu ri Change in expected credit loss 1 (i) 0 (0) Finance cost, net al 108 n 45 Net exchange differences eT nu 3 4 Non-cash operating items 18 2 15 (0) Income t
Slide 18: Reconciliation of Non-IFRS Measures (1/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (1/6) REVENUE | IN € MILLION | UNAUDITED 03 03 Constant Currency FY23 FY24 Growth [%] Growth [%] B2B 276 341 24% 23% ore 176 223 14% 14% Corporate / Uther | | (27)% (27)% Total Revenue 473 365 19% 19% Americas 244 283 16% 15% Europe Bi 27 20% 19% APMA
Slide 19: Reconciliation of Non-IFRS Measures (2/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (2/6) OPERATING EXPENSES | IN € MILLION | UNAU DITED YTD Q1-03 a3 FY23 FY24 FY23 FY24, Selling and distribution expenses (310) (366) (137) (149) Add Adjustments: Share-based compensation expenses 2 0 2 - Relocation expenses” 4 - (0) : Adjusted Selling
Slide 20: Reconciliation of Non-IFRS Measures (3/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (3/6) EBITDA | IN € MILLION | UNAUDITED YTD 01-03 Q3 FY23 FY24 FY23 FY24 Net profit (loss) 103 139 63 5 Income tax expense 51 76 28 36 Finance cost, net 81 108 a7 45 Depreciation & amortization 62 n 2 25 EBITDA 2 396 139 180 Add Adjustments: Shate-bas
Slide 21: Reconciliation of Non-IFRS Measures (4/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (4/6) NET PROFIT | IN € MILLION | UNAUDITED YTD 01-03 03 FY23 FY24 FY23 FY24, Net profit (loss) 103 139 63 5 Add (Less) Adjustments: Share-based compensation expenses 18 4 10 - Relocation expenses” 4 - 0) : Restructuring expenses? 2 - - - [PO-related
Slide 22: Reconciliation of Non-IFRS Measures (5/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (5/6) EARNINGS PER SHARE | IN €, UNLESS OTHERWISE STATED | UNAUDITED YTD Q1-03 a3 FY23 FY24 FY23 FY24, Net profit (loss) (in € million) 133 239 63 7 Adjusted Net profit (loss) (in € million) 132 186 80 2 Weighted number of outstanding shares (in milli
Slide 23: Reconciliation of Non-IFRS Measures (6/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (6/6) NET DEBT | IN € MILLION | UNAUDITED 4 a3 FY23 FY24 Loans and borrowings (Non-current) 1,816 1,325 USD Term Loan (Current) 7 3 Lease liabilities (Non-current) 133 139 Lease liabilities (Current) a 35 Cash and cash equivalents 344 404 Net Debt 1,6