Douglas Ag · XETR:DOU
Douglas — Debt Investor Presentation (February 2021)
31 slides from Douglas's debt investor presentation, Feb 26, 2021
Slide 1: Financial Results
Financial Results Düsseldorf, 26 February 2021
Slide 2: Notice to Recipients
NOTICE TO RECIPIENTS This presentation and any materials distributed in connection herewith (together, the “Presentation”) have been prepared by Douglas GmbH (the “Company”) solely for use at this presentation, to be provided to selected Parties (each a “Recipient”). This presentation is solely for
Slide 3: Today's Speakers
TODAY’S SPEAKERS Tina Müller Group CEO Matthias Born Group CFO 3
Slide 4: COVID-19-Impacted First Quarter, Record Growth in E-Commerce Sales
COVID-19-IMPACTED FIRST QUARTER RECORD GROWTH IN E-COMMERCE SALES › Q1 characterised by various lockdowns and COVID- related restrictions in core countries › Record growth in e-commerce of 74% partially mitigated sales decrease in stores caused by lockdowns › Overall e-com share of sales increased t
Slide 5: Overview of Brick-and-Mortar Lockdowns
OVERVIEW OF BRICK-AND-MORTAR LOCKDOWNS Singles’ Black Christmas Day Friday high season 2020 2021 MM 10 11- 11- 11- 11- 12- 12- 12- 12- 12- 01- 01- 01- 01- 02- 02- 02- DD 30 06 13 20 27 04 11 18 241 311 08 15 22 29 05 12 19 FR AT PL DE NL IT2 ES PERCENTAGE OF OPEN STORES IN DOUGLAS GROUP 76 76 69 67
Slide 6: 74% E-Commerce Growth
74% E-COMMERCE GROWTH PARTIALLY MITIGATED COVID-19 IMPACT ACROSS REGIONS GROUP GERMANY FRANCE (ONLINE) (m€) (m€) (m€) LfL Net Sales LfL LfL LfL 433 481 453 309 287 249 6 Q1 19/20 Q1 20/21 8 Q1 19/20 Q1 20/21 Q1 19/20 Q1 20/21 GROUP SOUTH-WESTERN EASTERN EUROPE (STORES) EUROPE (m€) (m€) (m€) LfL LfL
Slide 7: Net Sales Impact by Lockdown in Q1 (1/2)
NET SALES IMPACT BY LOCKDOWN IN Q1 (1/2) GERMANY: STORE CLOSURES FROM 16 – 31 DEC 2020 (€m) 201 › Weeks from 16-31 Dec 2020 159 (73) 31 accounted for 9% of annual sales Dec 2019 Δ Stores Δ Online Dec 2020 › Enhanced logistics capacities supported significant online Online 25% sales growth during the
Slide 8: Net Sales Impact by Lockdown in Q1 (2/2)
NET SALES IMPACT BY LOCKDOWN IN Q1 (2/2) FRANCE: STORE CLOSURES FROM 31 OCT – 27 NOV 2020 (€m) 102 › Very strong growth of e- 64 commerce in second (68) 31 lockdown compared to first Nov.-19 Δ Stores Δ Online Nov.-20 › Highly demanded click & collect service supported by Online 18% 25% Stores strong
Slide 9: Well Prepared for the 2nd Wave of Lockdowns
WELL PREPARED FOR THE 2ND WAVE OF LOCKDOWNS LEARNINGS FROM THE 1ST LOCKDOWN IN SPRING 2020 HELPED US TO IMPROVE IN THE 2ND WAVE OF LOCKDOWNS WAREHOUSE CAPACITIES ORDER CHANNELS ENLARGED ASSORTMENT Alternative order channels › Warehouse capacities established: › Assortment extended increased › Ship f
Slide 10: E-Commerce: Strong Development of KPIs
E-COMMERCE: STRONG DEVELOPMENT OF KPIS NO.1 EUROPEAN BEAUTY E-COMMERCE PLAYER ONLINE NET SALES ONLINE REVENUE SHARE GROUP Q1 2020/21 +74.3% CONVERSION RATE AVERAGE BASKET* 0.1%pts +3.8% GERMANY Q1 2019/20 MOBILE REVENUE SHARE APP REVENUE SHARE +4.0%pts +5.1%pts 10 * Source: WebTrekk (incl. VAT), not
Slide 11: Adjusted EBITDA Q1 2020/21
ADJUSTED EBITDA Q1 2020/21 Q1 2020/21 VS. PY › €120m decrease in FY Net Sales (m€) translated into a decrease of only €42.1m adjusted EBITDA1 › Continuously strict cost discipline 219 and short-time work allowance 177 helped to partially mitigate the lockdown effects and the decline in store sales Q
Slide 12: Summary
SUMMARY Record growth in e-commerce partially mitigated sales decrease in brick-and-mortar caused by lockdowns E-Commerce achieved €1bn Net Sales LTM December 2020 Learnings from the first lockdowns in spring 2020 helped us to improve in Q1 20/21 Adjusted EBITDA decline partially compensated by coun
Slide 13: Closer Look: Q1 2020/21 Financials
Closer Look: O1 2020/21 Financials 13 DOUGLAS
Slide 14: Q1 2020/21 Financials: COVID-19-Impacted
Q1 2020/21 FINANCIALS: COVID-19-IMPACTED RECENT LOCKDOWNS HAVE LEFT THEIR MARK NET SALES LFL GROWTH 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 (m€) (m€) Total LfL Growth: 219 1,293 177 215 1,173 148 Store LfL Growth: Q1 2019/20 Q1 2020/21 Online LfL Growth: Q1 2019/20 Q1 2020/21 Q1 2019/20 Q
Slide 15: Net Sales Development by Segment
NET SALES DEVELOPMENT BY SEGMENT Q1 2020/21 › Net sales impacted by COVID-19 NET SALES 1 lockdowns GROUP² GERMANY² FRANCE › SWE and EE most severely impacted due to temporary lockdowns and (m€) (m€) (m€) significant restrictions, e.g. in NL, PL, LfL LfL CZ, BG LfL 481 453 309 287 › Important shoppin
Slide 16: Adjusted EBITDA Development by Segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q1 2020/21 › EBITDA figures stated pre IFRS16 ADJUSTED EBITDA 1 › E-Com contribution and strict cost GROUP³ G E R M A N Y 2,3 FRANCE discipline have mitigating effect › Germany: Affected by decrease in store (m€) (m€) (m€) contribution and non-variable central
Slide 17: Gross Profit Decline Partially Mitigated
GROSS PROFIT DECLINE PARTIALLY MITIGATED Cost savings (e.g. personnel and rent) offsetting increased Q1 2020/21 variable e-com costs (e.g. logistics and performance Decrease in FCF due to (m€) marketing) and consulting lower Rep. EBITDA, costs, PY includes partially mitigated by Lower gross profit d
Slide 18: Strong Improvement in Working Capital Supported Free Cash Flow
STRONG IMPROVEMENT IN WORKING CAPITAL SUPPORTED FREE CASH FLOW ADJUSTED FCF DEVELOPMENT (m€) 277 316 276 FREE CASH FLOW BRIDGE Q1 2020/21 (m€) Q1 2018/19 Q1 2019/20 Q1 2020/21 (26) 58 (6) 74 (28) 276 250 250 177 0 Adj. EBITDA CAPEX1 Working Taxes Others2 Adj. Free EBITDA Free Cash M&A Free Cash Capi
Slide 19: Liquidity Secured Through Countermeasures
LIQUIDITY SECURED THROUGH COUNTERMEASURES CASH BALANCE (m€) › Effect from lower gross profit, partially compensated by › Savings in personnel expenses (incl. government subsidies) and shift of social securities payments/taxes 459 › Waived/reduced/shifted rent payments 362 135 (RCF) › Capex reduction
Slide 20: Successful Working Capital Management
SUCCESSFUL WORKING CAPITAL MANAGEMENT NET WORKING CAPITAL (m€) › Strong limit control resulted in reduced working capital 228 › Despite COVID-19, inventory managed efficiently, 188 e.g. shift of store inventory to e-Commerce › Lower payables due to cautious inventory build up › Receivables below PY
Slide 21: Evolution of Capital Structure and Key Leverage Metrics
EVOLUTION OF CAPITAL STRUCTURE AND KEY LEVERAGE METRICS CAPITAL STRUCTURE TOTAL NET LEVERAGE 31 December 2020 7.9x m€ x Adj. EBITDA Maturity Pricing 5.1x 5.4x 4.8x Cash and Equivalents 459 E+3.75% RCF (€200m Volume)4 135 Feb 22 (0% floor) Dec 2017 Dec 2018 Dec 2019 Dec 2020 E+3.50% Term Loan B (B3/C
Slide 22: SOP Implementation Successfully Started and Fully on Track
SOP IMPLEMENTATION SUCCESSFULLY STARTED AND FULLY ON TRACK WITH FIRST IMPACT REALIZED Store closures / terminations (# of stores) FTE reductions1 Rent negotiations for stores remaining open In percent of total Contracts terminated Stores 12% 17% 12% Stores closed in closure stores negotiated Already
Slide 23: Summary Q1 2020/21
SUMMARY Q1 2020/21 Another COVID-19 impacted quarter Liquidity and business continuity secured Store optimisation programme started and fully on track Cost-optimisation programme continued E-Commerce achieved €1bn Net Sales LTM December 2020 23
Slide 24: Thank you.
Thank you. DOUGLAS
Slide 25: Appendix
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Slide 26: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA › Consulting fees: Internal strategic EBITDA ADJUSTMENTS projects (e.g. costs to be expected as part of cost-savings and store (m€) Q1 2019/20 Q1 2020/21 restructuring program going forward) › PPA: Former acquisitions Reported EBITDA1 215 148 › Credit card fees: “Below EBITDA”
Slide 27: Reported EBITDA
REPORTED EBITDA REPORTED EBITDA 1 (m€) Q1 Q1 2019/20 2020/21 Germany1,2 66 38 France 66 56 South-Western Europe 56 32 Eastern Europe 27 23 Group 215 148 27 1 Retrospective restatement of competitive information for the prior-year period according to IAS 8 2 Incl. consolidation effects
Slide 28: Deep Dive into LfL Net Sales Growth
DEEP DIVE INTO LFL NET SALES GROWTH QUARTERLY DEVELOPMENT LFL NET SALES GROWTH DEVELOPMENT Q1 Q2 Q3 Q4 Q1 LTM December 2019/20 2019/20 2019/20 2019/20 2020/21 2020 Germany 6.6% (3.7)% (19.0)% 2.3% (3.3)% (5.5)% France 2.8% (15.8)% (34.9)% (6.7)% (6.5)% (14.1)% South-Western Europe 4.7% (15.8)% (34.9
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT › Solid Cash Flow from CASH FLOW STATEMENT Operating activities due to (m€) Q1 Q1 good working capital 2019/20 2020/21 management including Net Cash Flow from Operating activities 343 278 inventory and shifted payments Net Cash Flow from Investing activities (31) (27) › Cash flow
Slide 30: Net Working Capital
NET WORKING CAPITAL › Net Working Capital continues to NET WORKING CAPITAL be a key focus (m€) › Inventory lower compared to Q1 2019/20 despite challenges due 284 313 228 248 188 to COVID-19, in line with seasonal patterns › Payables: Lower due to cautious NWC as % of LTM Net Sales Q1 2019/20 Q2 201
Slide 31: Premium Store Network Footprint Across Europe
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE › Limited store openings, 2.372 2.371 mainly in EE 140 141 › Portfolio realignment 2.232 2.230 across Europe will result in further reduction in # of stores 31 Dec. 31 Dec. 2019 2020 Own stores Franchise stores YTD DEVELOPMENT Q1 2019/20 Q1 2020/21 Store