Douglas Ag · XETR:DOU
Douglas — Debt Investor Presentation (August 2021)
46 slides from Douglas's debt investor presentation, Aug 25, 2021
Slide 1: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS Düsseldorf, 25 August 2021
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: Strong E-Com Growth Continues as Stores Reopen Step-by-Step
STRONG E-COM GROWTH CONTINUES AS STORES REOPEN STEP-BY-STEP Net sales growth of Double-digit growth Double-digit €369m liquidity Execution of 16.8% lfl vs. PY in E-Com (+20% vs. PY) growth (+14.8% lfl headroom end of Store Optimisa- Net sales growth in E-Com share of sales vs. PY) in Brick & June 4.
Slide 5: Overview of Brick & Mortar Lockdowns
OVERVIEW OF BRICK & MORTAR LOCKDOWNS DOUGLAS CORE COUNTRIES IN Q3 APRIL MAY JUNE 04-09 04-16 04-23 04-30 05-07 05-14 05-21 05-28 06-04 06-11 06-18 06-25 FR PL DE Some stores were open for Click & Meet NL Until April 28, Click & Meet only Stores in shopping centres were closed IT* on weekends until 2
Slide 6: Net Sales Development Q3 2020/21
NET SALES DEVELOPMENT Q3 2020/21 E-COM CONTINUES TO GROW SIGNIFICANTLY In m€ GROUP TOTAL GROUP E-COMMERCE GROUP BRICK & MORTAR 644 557 LfL LfL 328 374 224 268 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Positive sales development Europe-wide lockdown E-Commerce: Brick & Mortar:
Slide 7: In June, Sales Higher Than Pre-Covid-19 Levels
IN JUNE, SALES HIGHER THAN PRE-COVID-19 LEVELS E-COM-DRIVEN WITH BRICK & MORTAR NEEDING TO RECOVER FURTHER Like-for-like growth vs. PPY GROUP TOTAL GROUP E-COMMERCE GROUP BRICK & MORTAR 114.7% 95.5% 87.8% 12.1% -9.0% -5.5% -31.2% -32.6% -71.8% April 21 May 21 June 21 April 21 May 21 June 21 April 21
Slide 8: Adjusted EBITDA Development Q3 2020/21
ADJUSTED EBITDA DEVELOPMENT Q3 2020/21 In m€ GROUP TOTAL1 European-wide lockdown in the previous year resulted in significant cost reductions and adjustments in Q3 2019/20 – mainly driven by idle rents and personnel costs 27 24 Less cost reductions and adjustments in 27 24 Q3 2020/21 with stores bei
Slide 9: Long-Term E-Commerce Growth
LONG-TERM E-COMMERCE GROWTH SALES DOUBLED OVER THE PAST TWO YEARS TO ~€1.2BN NET SALES (In m€) Growth further accelerates with Net Sales of nearly €1.2bn 822 585 LTM Jun 2020/21 CAGR vs. LTM Jun 2019/20 423 383 324 261 180 145 106 50 69 13 19 23 32 39 2 4 6 9 00/01 01/02 02/03 03/04 04/05 05/06 06/0
Slide 10: Douglas Expands Market Shares in E-Commerce
DOUGLAS EXPANDS MARKET SHARES IN E-COMMERCE Douglas increased market shares in Germany, France and Italy Apr-Jun Apr-Jun Douglas France took over 2020 2021 E-Commerce market leadership E-Commerce is the key growth driver Germany France Italy 10 Source: NPD panel Germany, France, Italy, covering pres
Slide 11: E-Commerce: Strong Development of KPIs
E-COMMERCE: STRONG DEVELOPMENT OF KPIS EUROPE’S NO.1 BEAUTY PLATFORM Q3 2020/21 GROUP GERMANY +19.9% 0.1%pts +4.8% E-Com net sales Conversion rate Average basket (incl. VAT)* +5.1%pts +7.8%pts E-Com revenue share Mobile revenue share App revenue share Germany 11 *Source: WebTrekk, not adjusted for c
Slide 12: Market View
MARKET VIEW CATEGORIES BRANDS Continued growth in skincare New brands created by influencers or celebrities successfully entered the Post lockdown sales of fragrance market and decorative cosmetic increased again CONSUMER BEHAVIOUR Strong demand for clean beauty Consumers value sustainability and na
Slide 13: #ForwardBeauty.DigitalFirst Strategy Execution Update
#FORWARDBEAUTY.DIGITALFIRST STRATEGY EXECUTION UPDATE BEAUTY PLATFORM Brand positioning E-COMMERCE ONLINE SHOP MARKETPLACE 13 1 ASSORTMENT 4 CURATION / CRM Choice & innovation Inspiration & personalisation 2 SUPPLY CHAIN 3 TECHNOLOGY Customer Operational excellence Data-driven culture Partner relati
Slide 14: From Purpose to Retail Brand Equity
FROM PURPOSE TO RETAIL BRAND EQUITY 14
Slide 15: Assortment
ASSORTMENT 1 NEW BRANDS CHARLOTTE HUDA BEAUTY TILBURY Available since March Available online since June, starting Sep./ Oct. One of the fastest growing also in stores cosmetic brands worldwide Blockbuster brand with cult status KYLIE COSMETICS KEYS SOULCARE Available online since July Available sinc
Slide 16: AI and Digitisation Driving Supply Chain Transformation
AI AND DIGITISATION DRIVING SUPPLY CHAIN 2 TRANSFORMATION FUTURE SUPPLY CHAIN SET UP DOUGLAS COUNTRIES › One Warehouse All Channels (OWAC) project – to consolidate more than 20 facilities into 5 OWAC sites › Status of DACH-NL-OWAC site in Hamm: start of operations in Q4 FY 2021/22 OWAC in PL › Integ
Slide 17: Technology: Douglas DataHub
TECHNOLOGY: DOUGLAS DATAHUB AS KEY ENABLER 3 FOR A HOLISTIC MACHINE LEARNING DATA STRATEGY PROGRESS Q3 / FY2020/21 DATA INTEGRATION Full integration of data from: Sales, E-Commerce, app, core marketing, CRM and retail media DATA GOVERNANCE › Main KPI definition done › Core market KPI definition roll
Slide 18: Curation/CRM: Douglas Live
CURATION/CRM: DOUGLAS LIVE 4 IMPRESSIVE STARTING POINT FOR SOCIAL COMMERCE Live in DE, AT, CH, in DE, NL, PL and IT; 60 Of DOUGLAS LIVE NL, IT, ES, PL and FR mins per stream shopping via the app (AT, CH, ES and FR 1-2 streams per week) Annual spend Customers aged 16-30 Purchases per year compared to
Slide 19: Marketplace: Success Factor of Our Strategy
MARKETPLACE: SUCCESS FACTOR OF OUR STRATEGY NUMBER OF MARKETPLACE NUMBER OF MARKETPLACE PARTNERS IN GERMANY SKUS IN GERMANY 168 110k 38k 45 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Marketplace live New countries 19
Slide 20: Further Events in Q3
FURTHER EVENTS IN Q3 M A Y M A Y J U N E J U N E › Douglas celebrated its › Douglas completed Google’s › Douglas celebrated Pride month Douglas supported World 111th anniversary Digital Acceleration Programme to support diversity, tolerance Environment Day on June 5 › 1910: Anna & Maria Carstens › D
Slide 21: Closer Look: Q3 2020/21 Financials
CLOSER LOOK Q3 2020/21 FINANCIALS
Slide 22: Net Sales Development by Segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q3 2020/21 Total, in m€ GERMANY FRANCE 237 221 LfL LfL 105 131 GROUP Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 644 LfL 557 SOUTH-WESTERN EUROPE EASTERN EUROPE 211 LfL LfL 158 57 80 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Net sales in
Slide 23: Net Sales Development by Segment: E-Commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q3 2020/21 E-Com, in m€ GERMANY FRANCE 129 153 GROUP 21 39 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 268 224 SOUTH-WESTERN EUROPE EASTERN EUROPE 53 55 22 21 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 E-Com continued its growth Germ
Slide 24: Net Sales Development by Segment: Brick & Mortar
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR Q3 2020/21 Brick & Mortar, in m€ GERMANY FRANCE 106 68 LfL 81 92 LfL GROUP Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 LfL 374 328 SOUTH-WESTERN EUROPE EASTERN EUROPE 156 LfL LfL 104 37 58 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/
Slide 25: Adjusted EBITDA Development by Segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q3 2020/21 Adjusted EBITDA1, in m€ G E R M A N Y 2,3 FRANCE 17 4 14 G GRRO OUUP P3 3 -8 27 Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 24 SOUTH-WESTERN EUROPE EASTERN EUROPE 11 Adjusted EBITDA 5 3 4 Margin Q3 2019/20 Q3 2020/21 Q3 2019/20 Q3 2020/21 Q3 2019/20
Slide 26: Key Financials at a Glance
KEY FINANCIALS AT A GLANCE Q3 2020/21 In m€ A D J U S T E D 1,5/ R E P O R T E D E B I T D A 5 CAPEX2 Capex: 19 increased to level in line with Pre- 17 27 24 COVID 19 situation; investments in E-Commerce capabilities and database Margins -23 -23 Cash Conversion: higher capex in connection with Q3 20
Slide 27: Deviation Analysis Q3 2020/21
DEVIATION ANALYSIS Q3 2020/21 In m€ Higher net sales Higher personnel costs Mainly adjusted Previous year positively Increased supplier due to lower short-term for COVID-19 effects, affected by deferred bonus, lower cash allowance, rents and restructuring costs and and reduced rent margin costs of d
Slide 28: Free Cash Flow
FREE CASH FLOW IMPACTED BY REQUIRED CAPEX AND CASH EFFECT OF ADJUSTMENTS In m€ FREE CASH FLOW BRIDGE Q3 2020/21 ADJUSTED FCF DEVELOPMENT 78 37 1 24 Q3 2018/19 Q3 2019/20 Q3 2020/21 -20 34 -20 -18 1 -46 0 -44 -44 Adj. EBITDA Capex1 Working Taxes Others2 Adj. Free EBITDA Free Cash M&A Free Cash Capita
Slide 29: Sufficient Liquidity Headroom
SUFFICIENT LIQUIDITY HEADROOM ONGOING COST AND CASH DISCIPLINE In m€ CASH BALANCE NET WORKING CAPITAL 369 313 339 252 165 (RCF) 0 (RCF) 174 224 30 Jun 20 30 Jun 21 30 Jun 20 30 Jun 21 › Improved liquidity headroom thanks to successful › Strong limit control and introduction of RELEX refinancing and
Slide 30: Evolution of Capital Structure and Key Leverage Metrics
EVOLUTION OF CAPITAL STRUCTURE AND KEY LEVERAGE METRICS CASH AND DEBT STRUCTURE AS OF 30 JUNE 2021 TOTAL NET LEVERAGE m€ x Adj. x Mgt. Maturity Pricing EBITDA Adj. EBITDA³ 9.8x 6.7x Cash and Equivalents 224 5.8x 5.4x RCF (€170m Volume) 0 Jan 26 E+4.75% E+5.5% Jun 2019 Jun 2020 Jun 2021 Mgmt. adj. Te
Slide 31: SOP Implementation Successfully Started
SOP IMPLEMENTATION SUCCESSFULLY STARTED STATUS 30.06.2021 AND FIRST IMPACTS REALIZED STORE CLOSURES / LEASE FTE REDUCTIONS RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES (# OF STORES) Contracts terminated Store Stores closed 45% in stores to be closed 29% re-negotiation 30% completed
Slide 32: Summary Q3
SUMMARY Q3 Step-by-step re-opening of all stores across Europe Continuous strong E-Commerce growth as stores reopened Douglas strategy #FORWARDBEAUTY. DigitalFirst is in full execution: › New brand campaign › Expansion of assortment with major brands › Optimisation of supply chain ongoing › Remarkab
Slide 33: Appendix
Slide 34: Net Sales Development by Segment: 9M 2020/21
NET SALES DEVELOPMENT BY SEGMENT GROUP 9M 2020/21 Total, in m€ GERMANY FRANCE 981 863 LfL 546 542 LfL GROUP 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 2,506 LfL 2,367 SOUTH-WESTERN EUROPE EASTERN EUROPE 720 700 LfL 259 263 LfL 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 Net Sa
Slide 35: Net Sales Development by Segment: E-Commerce 9M
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE 9M 2020/21 E-Com, in m€ GERMANY FRANCE 555 391 156 80 GROUP 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 993 SOUTH-WESTERN EUROPE EASTERN EUROPE 638 206 124 76 44 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 Lockdowns related to COVID-1
Slide 36: Net Sales Development by Segment: Brick & Mortar 9M
NET SALES DEVELOPMENT BY SEGMENT BRICK & MORTAR 9M 2020/21 Brick & Mortar, in m€ GERMANY FRANCE 586 LfL 458 381 LfL 305 GROUP 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 LfL 1,844 1,364 SOUTH-WESTERN EUROPE EASTERN EUROPE 591 492 LfL 209 187 LfL 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 9M 2019/20
Slide 37: Adjusted EBITDA Development by Segment 9M
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT 9M 2020/21 Adjusted EBITDA1, in m€ GERMANY2 FRANCE 63 94 87 35 G GRRO OUUPP 3 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 252 194 SOUTH-WESTERN EUROPE EASTERN EUROPE Adjusted 60 35 42 EBITDA 30 Margin 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 9M 2019/20 9M 20
Slide 38: Key Financials at a Glance 9M 2020/21
KEY FINANCIALS AT A GLANCE 9M 2020/21 In m€ A D J U S T E D 1/ R E P O R T E D E B I T D A CAPEX2 Capex: cash protection measures 252 55 51 194 183 Cash Conversion: Margins slightly lower capex in conjunction with lower adjusted EBITDA Kategorie 1 -39 9M 2019/20 9M 2020/21 9M 2019/20 9M 2020/21 9M 2
Slide 39: Deviation Analysis 9M 2020/21
DEVIATION ANALYSIS 9M 2020/21 In m€ Lower overall margin Driven by costs for SOP; Mainly adjusted Decrease in FCF due to market idle costs during for SOP, COVID-19 due to negative competition as well as lockdowns and effects and consulting reported EBITDA and channel shift consulting fees vs. cost f
Slide 40: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS Mainly related to refinancing PPA: Former acquisitions (m€) Q3 2019/20 Q3 2020/21 9M 2019/20 9M 2020/21 COVID-19: Reported EBITDA1 -23 -23 183 -39 In particular, staff- and rent- Consulting fees 4 3 12 27 related idle costs in connection with
Slide 41: Reported EBITDA
REPORTED EBITDA REPORTED EBITDA1 (m€) Q3 2019/20 Q3 2020/21 9M 2019/20 9M 2020/21 Germany1,2 -21 -48 31 -115 France 7 14 85 61 South-Western Europe -12 1 34 -19 Eastern Europe 3 10 32 34 Group -23 -23 183 -39 1 Retrospective restatement of comparative information for the previous-year period accordi
Slide 42: Deep Dive into LfL Net Sales Growth
DEEP DIVE INTO LFL NET SALES GROWTH QUARTERLY DEVELOPMENT LFL NET SALES GROWTH DEVELOPMENT LTM June (m€) Q3 2019/20 Q4 2019/20 Q1 2020/21 Q2 2020/21 Q3 2020/21 2021 Germany -19.0% 2.3% -3.3% -22.1% -3.5% -5.1% France -34.9% -6.7% -6.5% -7.6% 28.7% -0.7% South-Western Europe -34.9% -6.8% -12.1% -4.8%
Slide 43: Free Cash Flow 9M
FREE CASH FLOW IMPACTED BY REQUIRED CAPEX AND CASH EFFECT OF ADJUSTMENTS In m€ FREE CASH FLOW BRIDGE 9M 2020/21 ADJUSTED FCF DEVELOPMENT 232 182 134 194 182 9M 2018/19 9M 2019/20 9M 2020/21 -69 16 74 -33 -140 -89 -47 0 -47 Adj. EBITDA Capex Working Taxes Others Adj. Free EBITDA SOP Free Cash M&A Fre
Slide 44: Cash Flow Statement
CASH FLOW STATEMENT Cash flow from CASH FLOW STATEMENT operating activities impacted by COVID-19 induced store closures (m€) Q3 2019/20 Q3 2020/21 9M 2019/20 9M 2020/21 Cash flow from Net Cash Flow from Operating activities 48 -29 239 17 investing activities reduced due to liquidity saving Net Cash
Slide 45: Net Working Capital
NET WORKING CAPITAL Net Working Capital continues NET WORKING CAPITAL to be a key focus 313 286 248 252 188 Despite challenges due to NWC as % of LTM Net Sales COVID-19 inventory was lower compared to Q3 2019/20, in line with seasonal patterns Q3 2019/20 Q4 2019/20 Q1 2020/21 Q2 2020/21 Q3 2020/21 O
Slide 46: Premium Store Network Footprint Across Europe
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings Decrease in number of stores 139 driven by SOP 139 Portfolio realignment across Europe will result in further reduction in number of stores 2,248 2,034 (m€) 9M 2019/20 9M 2020/21 Store openings 17 2 Store closures