Signa Sports United N.v. · OTC:SSUNF
Signa Sports United — SPAC Merger (September 2021)
47 slides from Signa Sports United's SPAC merger presentation, Sep 17, 2021
Slide 1: SIGNA Sports United
September 17, 2021 1 SIGNA SPORTS UNITED SIGNA SPORTS UNITEDSeptember 17, 2021 1 SIGNA SPORTS UNITED SIGNA SPORTS UNITED
Slide 2: Confidentiality and Disclosures
Confidentiality and Disclosures This presentation (the Presentation ) has been prepared by SIGNA Sports United GmbH (the “Company”) in connection with a possible business combination (a “Transaction”) involving the Company and a special purpose acquisition company (the “SPAC”). This presentation is
Slide 3: Forward-looking statements and risk factors
Achieving our business and financial objectives, including growth in operations and maintenance of a strong balance sheet and liquidity position, could be adversely affected by, among other things: • Our inability to effectively integrate our largest acquisition to date, Wiggle Group, to realize exp
Slide 4: Transaction summary
• On June 11, 2021, SIGNA Sports United (SSU), Yucaipa Acquisition Corporation and WiggleCRC (WCRC) entered into a business combination agreement • The transaction is expected to close in H2 2021 • Post-closing company will be listed on the NYSE (1) • The combination of SSU and Wiggle represents an
Slide 5: SSU and Yucaipa leadership
Stephan Zoll Ira Tochner Alex Johnstone CEO COO & CFO of Yucaipa CFO Acquisition Corporation Senior Partner at The Yucaipa 10+ years of TMT 20+ years digital / retail Companies Investment Banking experience experience 5 SIGNA SPORTS UNITEDStephan Zoll Ira Tochner Alex Johnstone CEO COO & CFO of Yuca
Slide 6: Ron Burkle and Yucaipa track record
Ron Burkle ✓ Widely followed Chairman with long track record of Chairman & CEO creating value in private and public companies • Founded The Yucaipa Companies (“Yucaipa”) in 1986 • Widely recognized as one of the pre-eminent investors ✓ Personal intent to commitment from Ron Burkle as a PIPE in the r
Slide 7: Key investment highlights
Long-term Large, fragmented sports retail market with high long-term growth in focus verticals Megatrends Strong D2C Market leading sports specialist webshop brands with >7M active customers Brands Track Record Robust, double digit organic growth with demonstrated ability to enter new markets Attrac
Slide 8: SIGNA Sports United
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Slide 9: SSU at a glance
Global Sports Market Sports E-Commerce Net Revenues Revenue Adj. EBITDA 2020 (1)(2)(3) CAGR 20E-25E (1)(3) FY 2021 (1)(3) CAGR 21E-25E FY 2021 Net revenue (FY 2021) by market and category (%) RoW US ClimatePartner.com/14421-2006-1001 5% 9% UK 19% Europe 67% Team Sports Tennis 7% 17% Outdoor 13% 63%
Slide 10: SIGNA Sports United
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Slide 11: Global sports market size
(2) $1.1 TN Global Sports Market 2020E $672BN Offline & Online Global Sports Retail Market 2025E $474BN Offline & Online Global Sports Retail Market 2020E $158BN SSU Current Serviceable Market $1.6BN SSU FY21E Revenue 31% 24% Online 2025E Today Penetration Source: Company Information, Management est
Slide 12: E-bike growth
• SSU largest fullbike e-tailer globally shipping (1) c.300k+ p.a. units LTM • SSU e-Bike division has >100% CAGR since 2015 • 30% of SSU e-Bike sales from exclusive SSU Own ~130 Brands ~20 Electric Cars Electric Bicycles Source: Deloitte Discover the Future Report 2020, Deloitte Electric vehicles S
Slide 13: Sports categories
Teamsports Biking Outdoor Racket sports Fitness Golf Running Source: Management estimates, third-party research. Note: (1) Online and offline sports retail market. Select categories shown. 13 SIGNA SPORTS UNITEDTeamsports Biking Outdoor Racket sports Fitness Golf Running Source: Management estimates
Slide 14: Market position by category
$880 1 2 3 4 #2 #3 #4 $230 1 2 3 4 #2 #3 #4 $220 1 2 3 4 #1 #3 #4 $110 1 2 3 4 #1 #2 #4 Source: Company information, Management estimates, third-party research. Note: SSU financial year end as of 30-Sep. Assumed EUR / USD of 1.2000. Includes WCRC, Midwest Sports and Tennis Express. WCRC subject to c
Slide 15: Growth strategy
• Consolidate market leadership• Highly fragmented market• E-commerce solutions for brands • Further penetrate Europe• Rationalize existing or enter new markets• Connected Retail for offline partners • U.S. market entrance• Further verticalise• Digital community integrations • Category expansion: Fu
Slide 16: SIGNA Sports United
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Slide 17: Technology platform and ecosystem
• Highly differentiated own e-commerce businesses • Full-Service e-Commerce solutions and Connected Retail • Connected digital sports apps, wearables and trackers Content Production • Proprietary and scalable Inventory Management tech stack leveraging broad sports Customer Retail Service data set Pa
Slide 18: Own brands and pricing
Source: Company information. Note: (1) Price of average SSU bikes versus average price of competitor bikes. 18 18 STRICTLY PRIVATE & CONFIDENTIAL SIGNA SPORTS UNITED SIGNA SPORTS UNITEDSource: Company information. Note: (1) Price of average SSU bikes versus average price of competitor bikes. 18 18 S
Slide 19: Brands and webshops
Source: Company information. 19 SIGNA SPORTS UNITEDSource: Company information. 19 SIGNA SPORTS UNITED
Slide 20: Racket finder process
Step 1: Complete the racket finder questionnaire long medium Short Step 2: Receive tailored recommendations Step 3: Full racket details and customizations Source: Company information. 20 SIGNA SPORTS UNITEDStep 1: Complete the racket finder questionnaire long medium Short Step 2: Receive tailored re
Slide 21: Post-merger integration playbook
SSU post-merger integration playbook (1) Migration onto SSU Platform (1) Joint Sourcing and inventory management (1) Joint Sales & Marketing and Pricing Streamlined operations and fulfillment Combined overhead and service functions Source: Company information. Note: (1) WCRC subject to close concurr
Slide 22: Acquisition investment criteria
(2) SSU investment criteria following clear industry logic 2020A Net Revenue split (%) 4% (1) 15% Combination of leading global players 7% Leading positions in key markets, especially U.S. 58% 96% Unique assets & capabilities, e.g. own brands Proven stand-alone profitable growth track 20% High syner
Slide 23: Consolidation opportunity
$13.7 $9.5 $8.8 $3.9 $1.6 >$500M $200-500M $100-200M <$100M 2021E 2025E #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 #15 #16 #18 Global Top-3 Sports Retailers Source: Company information. Note: SSU financial year end as of 30-Sep. Pro forma for WCRC, Midwest Sports and Tennis Express. WCRC subject to
Slide 24: Platform service range
Retail media & data services C&C and endless-aisle 1-click commerce integration (1) Marketplace (Offline->Online) Online shop SaaS & fulfillment Sports activity engagement Service range Entry level Retail Media Vertical generalist Sales specialist Source: Company information. Note: (1) Connected Ret
Slide 25: Retail media and data services
Source: Company information. Note: (1) Fast-Moving Consumer Goods. 25 SIGNA SPORTS UNITEDSource: Company information. Note: (1) Fast-Moving Consumer Goods. 25 SIGNA SPORTS UNITED
Slide 26: SIGNA Sports United
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Slide 27: Key KPIs and customer metrics
12.0% 15.9% 20.7% 12.1% 250.2 (M, YoY Growth in %) (YoY Growth in %) 207.3 197.2 178.8 FY 2018A FY 2019A FY 2020A 9M YTD 7.0 0.5 12.8 37.8 2.47% (%, YoY Change in bps) 2.18% 2.05% 2.05% FY 2018A FY 2019A FY 2020A 9M YTD -- 1.1% 3.1% 0.9% LTM 06/20 LTM 06/21 $116.4 $117.7 $121.3 $123.7 (EUR, YoY Grow
Slide 28: Revenue retention by cohort
(%) – Actuals LTM December 96% 90% 90% 83% 58% 53% 53% 48% 2017 2018 2019 2020 2017 2018 2019 2020 Cohorts prior 2016 Cohort 2016 Cohort 2017 Revenue retention all cohorts Cohort 2018 Cohort 2019 Cohort 2020 Revenue retention cohorts older than 1+ years Source: Company information. Note: All KPIs ex
Slide 29: Net revenue, gross profit and EBITDA
$1,621 ($m) $1,014 $849 $644 FY 2019A FY 2020A FY 2021E FY 2021E $613 ($m) $382 $310 $222 FY 2019A FY 2020A FY 2021E FY 2021E Margin 34.5% 36.5% 37.6% 37.8% + 240bps + 90bps $80 ($m, YoY margin growth in bps) $32 $19 FY 2019A FY 2020A FY 2021E FY 2021E Margin (0.2%) 2.2% 3.1% 4.9% Source: Company in
Slide 30: Net revenue outlook FY2021E-FY2025E
$3,926 $621 $3,090 $350 $2,455 $183 $1,955 $55 $1,621 $3,305 $19 $2,740 $2,272 $1,900 $1,602 FY 2021E FY 2022E FY 2023E FY 2024E FY 2025E (2) (3) E-Commerce Platform Source: Company information. Note: SSU financial year end as of 30-Sep. Assumed EUR / USD of 1.2000. Pro-forma including full year WCR
Slide 31: Margin structure and long-term targets
(1) (2) FY 2020A FY 2021E Long Term ✓Dynamic pricing E-Commerce ✓Improving wholesale economics Gross Margin 36.1% 37.8% 37 - 39% ✓Private label share Personnel (10.2%) (9.0%) (8) - (10)% Logistics (9.9%) (11.0%) (9%) ✓Increased automation ✓Growing cohorts of repeat customers Marketing (7.1%) (6.6%)
Slide 32: Bike & Outdoor segment
FY 2020A 9M YTD 2021A FY 2020A 9M YTD 2021A Revenue Growth (y-o-y, %) Less penetrated markets ✓ Investing to win share Gross Profit ✓ Margin (%) Margin development with ✓ scale in market EBITDA Margin (%) Source: Management accounts, SSU Standalone Bike & Outdoor Segment. 32 SIGNA SPORTS UNITEDFY 20
Slide 33: SIGNA Sports United
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Slide 34: Transaction overview, sources and uses
✓ Values the combined SSU and Wiggle at ~$3.2BN ✓ Existing SSU shareholders to rollover 100% of their shares SPAC Sponsor, 3.0% WCRC Shareholders, 4.2% ✓ ~$300M PIPE, of which $50M committed by Yucaipa sponsor PIPE, 9.0% Ron Burkle SPAC, 10.3% Sources $M €M % Pro Forma Equity $2,716€2,254 80.8% SSU,
Slide 35: Peer valuation comparison
Primary 1P Broader 1P (1) 25% 26% 27% 21% 20% 29% 20% 28% 36% 4.8x 4.1x 3.0x 3.0x 2.8x 2.0x 2.0x 1.8x 1.6x 11.2x 10.8x 9.8x 9.2x 8.7x 8.5x 6.0x 4.8x 4.5x Source: Company Business Plan, FactSet. Market data as of 14-Sep-2021. Note: All financials calendarised to YE 30-Sep. Pro-forma including full ye
Slide 36: Summary and path to NYSE listing
Process on track to be listed on NYSE in October ✓ Leading global and scalable Sports e-commerce & technology platform ✓ Up to 100% upside to current valuation of primary 1P peers ✓ Operating Cash Flow positive & well capitalized to pursue growth ✓ Multiple actionable, synergistic, near-term M&A opp
Slide 37: SIGNA Sports United
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Slide 38: Market update and organic expansion
• Online traffic remains solid following full-lockdown driven traffic spikes in 2020 • Sustained demand observed by increased conversion across all webshops driving strong order growth MARKET UPDATE • Significant unmet demand due to temporary C-19 related inventory and supply-chain constraints in fu
Slide 39: Q3 FY21 customer KPIs
(M) 32.2% • 9M YTD ahead of plan across Q3 FY21 all KPIs YoY Growth 22.7% 4.8 Q3 FY20 YoY Growth • First order profitable customer acquisition with 3.6 32.2% growth led to 4.8M 2.9 active customers • Covid-19 Q3 2020 traffic spike effect offset by significant net Q3 FY19 Q3 FY20 Q3 FY21 conversion i
Slide 40: Q3 FY21 financial results
(M) 30% YoY growth excluding full- bike category 38.4% 12.9% 28.2% 30.6% • 9M YTD ahead of plan across Q3 FY20 Q3 FY21 9M FY20 9M FY21 all KPIs YoY Growth YoY Growth YoY Growth YoY Growth €625 • Net revenue growth in Q3 €251 €479 FY21 of 13% despite €222 constrained inventory across €161 full-bike c
Slide 41: Full-bike and e-bike market
Full-Bike (M) E-Bike Bio-Bike Full-bike revenue pool to grow faster than Supply constraints units due to higher resulted in (30%) 35.0 Short-term catch up of unit sales e-bike AOV) (1) YoY Q3 decline in anticipated once supply normalizes ) ~12% Full-bike sales) ’21E – ’30E 30.0 e-bike CAGR 25.0 ~5x
Slide 42: Outlook and M&A momentum
• Structural megatrends accelerated; offline to online retail shift, increased sports participation, public sector infrastructure spending (e.g. bike lanes), e-mobility / e-bike boom • Global supply chain constraints due to C-19 in full-bike likely to continue into FY2022, while demand MARKET projec
Slide 43: SIGNA Sports United
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Slide 44: SSU management team
Dorit Stephan Thomas Philipp Alex Stefanie Simone Zoll Neumann Rossner Johnstone Kniepen Kreyer Schindler CEO CTO CSO CFO Finance Director Chief of Staff Chief People Officer Christian Sascha Hans Olivier Dominic Philipp Tilman Miele Beyer Dohrmann Rochon Hoffmann Majcher Wink Founder & MD MD MD MD
Slide 45: Adjusted EBITDA reconciliation FY2019-FY2020
EUR million FY 2019A FY 2020A Loss for the period (35.9) (25.7) 1. Transaction costs from qualifying acquisition (+) Results from investments accounted for at equity 1 0.0 0.7 transactions or subsequent integration related (+) Finance costs 7.4 8.7 project costs directly associated with an acquired
Slide 46: Adjusted EBITDA reconciliation Q3 and 9M
(€M) Includes €10.1M of Includes €13.6M of consulting fees consulting fees related to public related to public listing listing FY Q3 9M YTD 2020 2021 2020 2021 Net Loss €2.5 (€12.9) (€15.6) (€24.9) Income Tax Benefit 2.1 3.0 (2.4) 4.6 Earnings before tax (EBT) €4.6 (€10.0) (€18.0) (€20.3) Depreciati
Slide 47: Strictly private & confidential
47 47 47 STRI STRICTLY CTLY PR PRIV IVA ATE & TE & CO CONFIDENTIAL NFIDENTIAL SIGNA SIGNA SP SPO ORTS RTS U UNITE NITED D47 47 47 STRI STRICTLY CTLY PR PRIV IVA ATE & TE & CO CONFIDENTIAL NFIDENTIAL SIGNA SIGNA SP SPO ORTS RTS U UNITE NITED D