Nakiki Se · XETR:WDL1
Nakiki — windeln.de — H1 2019 Earnings Presentation
25 slides from Nakiki's earnings presentation, Aug 8, 2019
Slide 1: Half year/second quarter 2019 results
Half year/second quarter 2019 results August 8, 2019
Slide 2: Disclaimer
Disclaimer This document and its related communication (“Presentation”) have been issued by windeln.de SE and its subsidiaries ( “Company”) and do not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or s
Slide 3: Summary: Progress on profitability in Europe and business development in China in Q2
Summary Progress on profitability in Europe and business development in China in Q2 • We made good progress on improving product margins at our European shops and set the basis for our further growth strategy in China − Growth strategy in China includes new online channels, product extension, 2nd bo
Slide 4: Business development in Europe and China
Business development in Europe and China Matthias Peuckert
Slide 5: Strong customer focus of all initiatives done in H1
Europe H1 Improvements Strong customer focus of all initiatives done in H1 Customer focus in H1 • Pregnancy • Personalized product app launched in all • Referral programs • Prolong lifecycle with recommendations further category regions • Technical • Extension of extensions • Attractive new enhancem
Slide 6: Focus on margin improvements in Europe shows results
Europe Focus on margin improvements in Europe shows results DACH Margin from Product Sales in % Actions taken 24.6% We consequently follow our profitability strategy by: 18.7% • Strict rules for new product listings • Adoption of pricing rules • Continuous review of product portfolio 2018 Full Year
Slide 7: China growth strategy to expand online business and build hybrid business
China China growth strategy to expand online business and build hybrid business ✓ China webshop Cross- Border E-commerce Shop-in-shop ✓ Tmall Flagship store Maximize ONLINE OFFLINE Technology presence empowerment Franchise ✓ App community shop WeChat General Franchise mini program Trade shop in and
Slide 8: Further improvements in H1 in China; important growth measures ahead for H2 and beyond
China Further improvements in H1 in China; important growth measures ahead for H2 and beyond H1 2019 H2 2019 and beyond New online distribution INCREASED channels LOCAL KNOW-HOW • Additional Management Board member • Extension of team in Shanghai (+5 employees) Bonded warehouse II Oflline/ hybrid st
Slide 9: H1 and Q2 2019 financials
H1 and Q2 2019 financials Dr. Nikolaus Weinberger
Slide 10: Group revenues: China Q2 improved yoy and qoq; Europe lower revenue base
Group Revenues China Q2 improved yoy and qoq; in Europe lower revenue base due to ongoing focus on profitability Revenues 2018 & 2019 (quarter over quarter) in EUR million 56.4 14.7 40.9 32.8 7.0 12.6 8.1 26.3 9.0 23.5 22.2 4.5 20.8 20.1 7.3 6.6 4.7 5.9 3.8 3.2 5.3 5.7 4.7 4.3 29.1 25.0 17.5 15.8 11
Slide 11: Improvement of profitability and cash flow over time
Improvement of profitability and cash flow over time Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 H1 2018 H1 2019 in EUR million Operating 2.2 contribution 2.3 1.3 1.3 0.4 0.9 1.3 -0.1 - -6.5 -5.8 -5.3 -4.8 -4.9 -4.6 -12.3 -9.5 Adj. Other SG&A -2.5 -3.3 -4.1 -7.3 = -5.2 -5.9 -4.9 -11.1 Adj. EBIT
Slide 12: Q2/H1 2019 financials improved in operating contribution, EBIT and cash flow
Group Profitability Our Q2/H1 2019 financials are improved in terms of operating contribution, EBIT and cash flow EUR million Q2 2018 Q2 2019 H1 2018 H1 2019 Development % of revenues Revenues 23.5 20.1 56.4 40.9 Focus on margins Gross profit1 24.0% 24.9% 24.4% 25.0% Improved year over year Fulfilme
Slide 13: Inventory levels approximately same level as 30-March; build up in Q3 expected
Cash Flow Inventory levels approximately same level as 30-March; build up in Q3 expected Inventory (EUR million) 19.7 12.9 9.6 7.9 7.7 6.8 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Days inventory (DIO) 71 65 51 33 45 46 Accrued advertising revenues + vendors with credit balance 7.2 1.8 1.7 1.8 1.4 1
Slide 14: Net cash out of EUR 3.3 million in Q2
Liquidity Net cash out of EUR 3.3 million in Q2 In EUR million Current level (6-Aug) EUR 9.7m given inventory buildup; 15.5 Evaluation of financing options to strengthen liquidity and fund China growth strategy -3.3 0.5 -0.6 12.1 EUR 0.4 million outstanding sales price Feedo received Total cash avai
Slide 15: We target to reach adjusted EBIT break-even early 2020 mainly through growth in China
We target to reach adjusted EBIT break-even early 2020 mainly through growth in China and further profitability improvements in Europe Early Q2 2019 2020 China Adj. EBIT break- even Europe Adj. EBIT EUR (3.3) million SG&A Already lowered cost Increase revenues Increase revenues and profit base: and
Slide 16: Outlook 2019
Outlook Outlook 2019 • Expand in Chinese market supported by Asian investors (new platforms, new categories, new partners) Operational • Enhance customer offering, drive gross profit margin extension • Revenue growth compared to 2018 (changed) • Clear improvement of operating contribution margin Fin
Slide 17: Questions
"0 windeln.de Everything for my baby Questions
Slide 18: Appendix
"0 - ee Appendix Wwindeln.de
Slide 19: Shareholder structure and supervisory board
Shareholder Structure Shareholder structure and supervisory board Shareholder structure1) Basic share data Free Float* Summit Asset Management WKN WNDL19 Acton Capital (2,364,864) ISIN DE000WNDL193 (312,617) 23.7% 3.1% Market place Frankfurt Stock Pinpoint Exchange Alceda Fund International Manageme
Slide 20: Key performance indicators quarter over quarter
KPIs Key performance indicators quarter over quarter Q1 ’18 Q2 ’18 Q3 ’18 Q4’18 Q1‘ 19 Q2 ‘ 19 Excl. pannolini and Feedo Site Visits 12,255 9,127 9,907 10,073 10.485 10,075 (in thousand) ¹ 4 Mobile Visit Share 72.3% 71.8% 70.3% 75,3% 78.8% 73.6% (in % of Site Visits) 2 Mobile Orders 53.3% 55.2% 55.1
Slide 21: Income statement (continuing operations)
Income statement Income statement (continuing operations) kEUR FY 2018 H1 2018 H1 2019 Q2 2018 Q2 2019 Revenues 104,818 56,371 40,909 23,548 20,146 Cost of sales -79,151 -42,912 -30,683 -17,959 -15,136 Gross profit 25,667 13,459 10,226 5,589 5,010 % margin 24.5% 23.9% 25.0% 23.7% 24.9% Selling and d
Slide 22: Balance sheet and cash flow statement
Balance sheet and cash flow statement Balance sheet and cash flow statement Consolidated statement of financial position Consolidated statement of cash flows December 31, March 31, June 30, kEUR 2018 2019 2019 kEUR FY 2018 H1 2018 H1 2019 Q2 2018 Q2 2019 Total non-current assets 5,345 5,951 5,116 Ne
Slide 23: Definitions of key performance indicators
KPIs Definitions of key performance indicators 1) We define site visits as the number of series of page requests from the same device and source in the measurement period and include visits to our online magazine. A visit is considered ended when no requests have been recorded in more than 30 minute
Slide 24: Footnotes to page 12
Footnotes to page 12 Note: Adjusted continuing operations shown (i.e. excluding discontinued operation Feedo Group). 1 The adjustments of gross profit relate to income expenses of the shop pannolini.it until the shops closure, and expenses for share-based compensation. 2 Fulfilment costs consist of
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