Global Fashion Group S.a. · XETR:GFG
Global Fashion — Q2 2022 Earnings Presentation
31 slides from Global Fashion's earnings presentation, Aug 18, 2022
Slide 1: Fashion and Lifestyle Destination in Growth Markets
#1 FASHION AND LIFESTYLE DESTINATION IN GROWTH MARKETS Q2 2022 RESULTS PRESENTATION 18 August 2022
Slide 2: Q2 12% NMV Growth and Profitability Distorted by CIS
Q2 12% NMV GROWTH AND PROFITABILITY DISTORTED BY CIS €792.1m 50.0% 10.2% NMV GROSS PROFIT MARGIN ADJ. EBITDA MARGIN CIS CIS Mostly +11.8% yoy1 €355.5m +3.8ppt yoy 59.4% +7.3ppt yoy +39.1%1 +8.8ppt CIS 16.2m 11.7m 2.9 ACTIVE CUSTOMERS ORDERS ORDER FREQUENCY (4.6)% yoy (9.4)% yoy +5.6% yoy Note: KPI d
Slide 3: H1 Business Update
H1 BUSINESS UPDATE 3 Q2 2022 RESULTS PRESENTATION
Slide 4: Delivering Against Our Key Priorities
DELIVERING AGAINST OUR KEY PRIORITIES BEST-IN-CLASS PARTNER OF CHOICE FOR BRANDS PEOPLE & PLANET POSITIVE CUSTOMER EXPERIENCE • Broad and relevant assortment • Unlocking complex markets • Transforming our operations • Inspiring and seamless digital experience • Offering flexible business models • In
Slide 5: Customer Experience Improvements in LATAM
BEST-IN-CLASS CUSTOMER EXPERIENCE PARTNER OF CHOICE FOR BRANDS PEOPLE & PLANET POSITIVE CUSTOMER EXPERIENCE IMPROVEMENTS IN LATAM KEY INITIATIVES PROGRESS ENSURE SEAMLESS FASTER DELIVERY FOR MORE CUSTOMERS Key Initiative Status Customer Experience H1/22 YoY Performance Metric Performance Increase ex
Slide 6: Growing Own Brand in ANZ
BEST-IN-CLASS CUSTOMER EXPERIENCE PARTNER OF CHOICE FOR BRANDS PEOPLE & PLANET POSITIVE GROWING OWN BRAND IN ANZ BROAD AND RELEVANT ASSORTMENT IN OWN BRANDS OWN BRAND DIFFERENTIATES THE ICONIC IN THE MARKET Indicates added in the last 18 months HIGH • Product exclusivity PRICE enhances customer loya
Slide 7: Marketplace Creates Brand Partnership Opportunities
BEST-IN-CLASS CUSTOMER EXPERIENCE PARTNER OF CHOICE FOR BRANDS PEOPLE & PLANET POSITIVE MARKETPLACE CREATES BRAND PARTNERSHIP OPPORTUNITIES BIGGEST BRANDS ADOPTING MARKETPLACE SEA: STRENGTHENING BRAND PARTNERSHIPS NMV (€M) Without Size Refill With Size Refill Zalora Retail source Adidas Marketplace
Slide 8: New Brand Launches in H1/22
BEST-IN-CLASS CUSTOMER EXPERIENCE PARTNER OF CHOICE FOR BRANDS PEOPLE & PLANET POSITIVE LOCALISED APPROACH DRIVING ROLLOUT OF LEADING BRANDS KEY LOCAL PARTNERSHIPS EXTENDING LEADING GLOBAL BRAND PARTNERSHIPS LATAM NEW BRAND LAUNCHES IN H1/22 SEA ANZ 8 Q2 2022 RESULTS PRESENTATION
Slide 9: Ensuring Our Future Is People & Planet Positive
BEST-IN-CLASS CUSTOMER EXPERIENCE PARTNER OF CHOICE FOR BRANDS PEOPLE & PLANET POSITIVE ENSURING OUR FUTURE IS PEOPLE & PLANET POSITIVE PEOPLE & PLANET POSITIVE REPORT 2030 SCIENCE BASED TARGETS APPROVED APRIL 2022 MAY 2022 50% reduction in Scope 1 & 2 emissions1 90% reduction per million NMV in Sco
Slide 10: Self Sufficiency Is the Priority for CIS
SELF SUFFICIENCY IS THE PRIORITY FOR CIS • Operational and financial self-sufficiency - Actively managing costs with a significant reduction in marketing activity, other costs and investments - No financial investments have been made into and no distributions have been taken from the region • Suppor
Slide 11: KPIs
KPIS 11 Q2 2022 RESULTS PRESENTATION
Slide 12: Growth Driven by Average Order Value
GROWTH DRIVEN BY AVERAGE ORDER VALUE NMV Retail Marketplace ORDERS AVERAGE ORDER VALUE (€M) (M) (€) +11.8%1 (9.4)% +23.4%1 792.1 12.9 67.9 11.7 610.1 39.4% 47.4 37.7% Q2/21 Q2/22 Q2/21 Q2/22 Q2/21 Q2/22 Note: KPI definitions are included in the Appendix. (1) Constant currency growth rate. Bars are a
Slide 13: Order Value and Frequency Driving NMV / Active Customer
ORDER VALUE AND FREQUENCY DRIVING NMV / ACTIVE CUSTOMER ACTIVE CUSTOMERS AVERAGE ORDER FREQUENCY NMV/ACTIVE CUSTOMER (M) (X) (€) (4.6)% +5.6% +23.3%1 17.0 2.9 16.2 2.8 164.8 127.3 Q2/21 Q2/22 Q2/21 Q2/22 Q2/21 Q2/22 Note: KPI definitions are included in the Appendix. (1) Constant currency growth rat
Slide 14: Strong Growth in ANZ, Weaker Macro in LATAM & SEA
STRONG GROWTH IN ANZ, WEAKER MACRO IN LATAM & SEA NMV ACTIVE CUSTOMERS2 NMV/ACTIVE CUSTOMER2 (€M) (M) (€) Q2/21 Q2/22 ∆ (%)1 Q2/21 Q2/22 ∆ (%) Q2/21 Q2/22 ∆ (%)1 GROUP 610.1 792.1 11.8 17.0 16.2 (4.6) 127.3 164.8 23.3 LATAM 169.9 163.6 (14.9) 8.1 7.0 (13.2) 74.1 81.9 7.1 CIS 202.3 355.5 39.1 3.5 3.7
Slide 15: Financials
FINANCIALS 15 Q2 2022 RESULTS PRESENTATION
Slide 16: Adj. EBITDA Driven by Gross Margin Improvement Alongside Cost Actions
ADJ. EBITDA DRIVEN BY GROSS MARGIN IMPROVEMENT ALONGSIDE COST ACTIONS REVENUE GROSS PROFIT MARGIN ADJUSTED EBITDA MARGIN (€M) (€M) (€M) +10.8%¹ +3.8pp +7.3pp 505.9 253.1 51.6 397.3 183.7 46.2% 50.0% 11.6 10.2% 2.9% Q2/21 Q2/22 Q2/21 Q2/22 Q2/21 Q2/22 +13.9%¹ +2.7pp +4.7pp 855.1 410.5 698.6 316.6 40.
Slide 17: Gross Margin in LATAM, SEA and ANZ Well-Controlled
GROSS MARGIN IN LATAM, SEA AND ANZ WELL-CONTROLLED REVENUE GROSS MARGIN (€M) (%) Q2/21 Q2/22 ∆ (%)1 Q2/21 Q2/22 ∆ (pp) GROUP 397.3 505.9 10.8 46.2 50.0 3.8 LATAM 97.2 99.4 (9.8) 48.2 46.0 (2.2) CIS 127.5 210.3 31.0 50.6 59.4 8.8 SEA 73.6 73.7 (8.0) 36.8 37.4 0.6 ANZ 99.0 122.9 18.3 45.6 45.0 (0.6) (
Slide 18: LATAM, SEA & ANZ Profitability Reflects Cost Actions
LATAM, SEA & ANZ PROFITABILITY REFLECTS COST ACTIONS ALONGSIDE INVESTMENT INTO LONG-TERM GROWTH REVENUE ADJUSTED EBITDA (€M) (€M) H1/21 H1/22 ∆ (%)1 H1/21 H1/22 ∆ (€M) GROUP 698.6 855.1 13.9 0.1 40.3 40.2 LATAM 164.3 167.5 (8.1) (3.1) (8.4) (5.3) CIS 226.1 337.5 36.1 13.1 61.2 48.1 SEA 137.8 138.5 (
Slide 19: Excluding CIS, Gross Margin Growing, Scale Efficiencies Being Delivered
EXCLUDING CIS, GROSS MARGIN GROWING, SCALE EFFICIENCIES BEING DELIVERED & REDUCED MARKETING INVESTMENT GROUP GROUP EXCLUDING CIS H1/19 H1/20 H1/21 H1/22 19-222 Driven by increase in Marketplace GROSS PROFIT 39.7% 41.8% 45.3% 48.0% 5.0pp and a robust Retail margin % REVENUE Profitability driven by G
Slide 20: Strong Quarter-End Cash
STRONG QUARTER-END CASH (€M) 552 52 18 500 (14) (11) (74) (0) (23) Pro forma net Pro forma net Q2 cash of €136m1 cash of €200m3 Pro-forma Adj. Working Capex Leases Repurchase of Convertible Other 2 Pro-forma Cash Opening Cash EBITDA Capital Convertible Bond Coupon Jun-22 Apr-22 Bonds Payment 642 40
Slide 21: Outlook
OUTLOOK 21 Q2 2022 RESULTS PRESENTATION
Slide 22: FY2022 Guidance
FY2022 GUIDANCE • Reflects current uncertainty across our markets 10% – 15% growth NMV • LATAM, SEA & ANZ expect similar dynamics to H1 - no longer lapping pandemic c.€2.9 – €3.0bn peaks, which is offset by a more challenging macroeconomic backdrop • CIS based on a more conservative view for both sa
Slide 23: Q&A
Q&A 23 Q2 2022 RESULTS PRESENTATION
Slide 24: Appendix
APPENDIX 24 Q2 2022 RESULTS PRESENTATION
Slide 25: Group Performance Detail by Region
GROUP PERFORMANCE DETAIL BY REGION NMV GROSS MARGIN ADJ. EBITDA (€M) (%) (€M) H1/21 H1/22 ∆ (%)1 H1/21 H1/22 ∆ (pp) H1/21 H1/22 ∆ (€M) GROUP 1,060.0 1,335.3 16.5 45.3 48.0 2.7 0.1 40.3 40.2 LATAM, SEA & ANZ2 698.5 763.4 (2.2) 43.5 43.1 (0.4) (13.1) (20.9) (12.2) LATAM 278.7 273.0 (11.6) 46.5 45.1 (1
Slide 26: FX Sensitivity
FX SENSITIVITY CURRENCY ∆ Q2/22 vs. Q2/21 NMV IMPACT REVENUE IMPACT ADJ. EBITDA IMPACT (%) (€M) (€M) (€M) RUB 26.4% 74.0 42.4 11.2 BRL 21.8% 17.6 11.3 (0.2) OTHER 1.8% 11.9 10.0 0.3 IMPACT ON Q2/22 AT Q2/21 FX RATES 16.4% 103.5 63.7 11.3 CURRENCY ∆ H1/22 vs. H1/21 NMV IMPACT REVENUE IMPACT ADJ. EBIT
Slide 27: Issued Share Capital
ISSUED SHARE CAPITAL SHARE INFORMATION EMPLOYEE SHARE OPTION PROGRAMME Weighted average exercise price Outstanding call options2 Common shares in dematerialised Type of Share form with a nominal value of €0.01 €0.01 183,468 €6.00 2,648,218 Stock Exchange Frankfurt Stock Exchange €10.32 3,190,934 €30
Slide 28: Convertible Bond 2021
CONVERTIBLE BOND 2021 PRICING TERMS CONVERTIBLE BOND REPURCHASE 2022 Outstanding Issue Size €279.9 million Status Senior Unsecured • On 27 April 2022, the Group successfully Maturity 7 Years repurchased outstanding Convertible Bonds due 2028 via a modified Dutch auction Issuer Call After Year 4 at 1
Slide 29: KPI Definitions
KPI DEFINITIONS Active Customers is defined as the number of customers who have purchased at least one item after ACTIVE CUSTOMERS cancellations, rejections and returns in the last twelve months Adjusted EBITDA is EBITDA adjusted for share-based payments, Group recharges, IAS 29 ADJUSTED EBITDA Hype
Slide 30: Financial Calendar – Upcoming Events
FINANCIAL CALENDAR – UPCOMING EVENTS DATE EVENT LOCATION 20 September 2022 Berenberg & Goldman Sachs German Corporate Conference Munich 21 September 2022 Baader Investment Conference Munich 8 November 2022 Q3 2022 Results Virtual 15 November 2022 Morgan Stanley Technology Conference Barcelona 5 Dece
Slide 31: Disclaimer
DISCLAIMER Certain statements included in this document are forward-looking statements. Forward-looking statements can typically be identified by the use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” or other words of simil