Douglas Ag · XETR:DOU
Douglas — Debt Investor Presentation (December 2022)
47 slides from Douglas's debt investor presentation, Dec 20, 2022
Slide 1: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS Düsseldorf, December 20, 2022
Slide 2: Today's Speakers
TODAY’S SPEAKERS CEO DOUGLAS Group CFO DOUGLAS Group 2
Slide 3: Meet the New DOUGLAS CEO
MEET THE NEW DOUGLAS CEO BACKGROUND • 54 years, Dutch, 30+ years in consumer goods & retail • 2015-2021: CEO Action, fastest growing non-food retailer • 2011-2015: CEO Albert Heijn, #1 food retailer in the Netherlands • Various management positions at leading international grocer Ahold in the Nether
Slide 4: Overview Q4 2021/22
Overview Q4 2021/22 DOUGLAS
Slide 5: Significant Sales & Earnings Growth
SIGNIFICANT SALES & EARNINGS GROWTH RESULTING FROM RESILIENT BUSINESS MODEL Continued strong net Double-digit growth Profitability continues Tense environment sales growth of in Stores and high to improve: Adjusted with customer 10.2% lfl vs. PY. single-digit growth in EBITDA almost uncertainty, 20.
Slide 6: Net Sales Development Q4 2021/22
NET SALES DEVELOPMENT Q4 2021/22 In m€ GROUP TOTAL GROUP STORE BUSINESS GROUP E-COMMERCE 810 752 +7.6% 540 557 +3.0% + 10.2% lfl 247 212 +16.7% + 10.9% lfl + 8.4% lfl Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 › Strong performance despite numerous burdening › Store sales furth
Slide 7: Strong Adjusted EBITDA and Margin Development
STRONG ADJUSTED EBITDA AND MARGIN DEVELOPMENT In m€ GROUP TOTAL 46 Higher sales in Stores and E-Com, combined with moderate cost growth drove adjusted EBITDA and margin increase despite higher marketing expenses 66.0% Store Optimization Program concluded with lower rental cost 28 ratio and lower per
Slide 8: Category Trends Q4 2021/22
CATEGORY TRENDS Q4 2021/22 FRAGRANCE AND MAKE-UP CONTINUE STRONG UPWARD TREND FRAGRANCE SKINCARE Strong growth (+23%), Positive growth (+10% fueled by exclusive, LTM); THE ORDINARY international launches; continues to overperform GISADA continuing to (+27%), has been ranking show very strong positiv
Slide 9: Supply Chain and Warehouse Management
SUPPLY CHAIN AND WAREHOUSE MANAGEMENT ADVANCED LOGISTICS TO MINIMISE SUPPLY CHAIN IMPACT Supply chain remained disrupted Omnichannel logistics centre in Germany put into operation although situation improved ▪ New distribution centre for DACH ▪ Main reason is the only recently ▪ Processing of online
Slide 10: Q4 2021/22 Financials
CLOSER LOOK O4 2021/22 FINANCIALS
Slide 11: Net Sales Development by Segment
NET SALES DEVELOPMENT BY SEGMENT GROUP Q4 2021/22 DACHNL FRANCE Total, in m€ 423 370 158 152 +14.3% -3.3% GROUP 810 752 +7.6% + 11.6% lfl + 3.3% lfl Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 126 118 99 112 -6.5% +13.2% + 10.2% lfl + 12.0% lfl + 13.2% lfl Q4 2
Slide 12: Net Sales Development by Segment: Store Business
NET SALES DEVELOPMENT BY SEGMENT STORE BUSINESS Q4 2021/22 Store business, in m€ DACHNL FRANCE GROUP 217 242 +11.4% 131 124 -5.5% 540 557 +3.0% + 15.6% lfl + 2.3% lfl Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 112 102 + 10.5% lfl -9.1% + 10.9% lfl 80 89 +11.1%
Slide 13: Net Sales Development by Segment: E-Commerce
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE Q4 2021/22 E-Commerce, in m€ DACHNL FRANCE 180 153 +17.9% + 7.5% lfl GROUP + 6.3% lfl 27 29 +7.5% 247 212 +16.7% Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 + 8.4% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE + 14.0% lfl 18 23 14 16 +22.8% +14.0% + 22.8% lfl
Slide 14: Adjusted EBITDA Development by Segment
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT Q4 2021/22 DACHNL Adjusted EBITDA1, in m€ FRANCE 44 20 GROUP 28 +60.4% 14 -32.4% 46 7.5% 10.5% 12.8% 9.0% Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 +66.0% 28 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 5 17 Adjusted 3.7% 5.7% EBITDA +147.6% 10 +68.8% Margin 2 1.5%
Slide 15: P&L Overview
P&L OVERVIEW Q4 2021/22 ³ In m€ Q4 2020/21 Q4 2021/22 ∆% Reported EBITDA: Higher marketing expenses, goods Net sales 752.3 812.2 8.0% handling costs and other services costs offset increased gross profit; in PY adj. Net sales 1 752.3 809.7 7.6% reclassification of costs in conjunction with the refin
Slide 16: Net Working Capital and Capex
NET WORKING CAPITAL AND CAPEX ONGOING IMPROVEMENTS AND INVESTMENT DISCIPLINE In m€ NET WORKING CAPITAL CAPEX 41 180 31 115 Q4 2020/21 Q4 2021/22 30.09.21 30.09.22 › Supply chain disruptions partially balanced by early orders, › Ongoing cautious spending policy against the background of efficiently m
Slide 17: Free Cash Flow 12M 2021/22
FREE CASH FLOW 12M 2021/22 In m€ ADJUSTED FCF DEVELOPMENT FREE CASH FLOW BRIDGE 12M 2021/22 232 197 167 325 12M 2019/2020 12M 2020/21 12M 2021/22 -86 -52 54 -74 167 -72 94 -24 70 Adj EBITDA CAPEX 1 Working Capital ² TAX Others ³ Adj FCF EBITDA Free Cash Flow M&A FCF POST M&A Adjustments (pre M&A) (C
Slide 18: Liquidity Headroom and Leverage
LIQUIDITY HEADROOM AND LEVERAGE ONGOING CASH AND COST FOCUS CASH BALANCE TOTAL NET LEVERAGE1 In m€ Net liquidity at prior year level 9.8 Positive net cashflow in FY 399 0.3% 400 8.1 2021/22 mainly as a result of 6.9 6.7 increased EBITDA, cautious spending policy and efficient working capital managem
Slide 19: SOP Implementation Completed
SOP IMPLEMENTATION COMPLETED STATUS 30/09/2022 STORE CLOSURES / LEASE FTE REDUCTIONS1 RENT NEGOTIATIONS KEEP TERMINATIONS (CURRENT EST.) OPEN STORES1 (# OF STORES) Contracts terminated Store 60% re-negotiation 67% Stores closed 95% in closure stores completed (#) Reduced in 38% Lease terminated/ kee
Slide 20: Full Year IFRS 16 Effects
FULL YEAR IFRS 16 EFFECTS in Mio € pre IFRS 16 post IFRS 16 Delta - pro forma - Other expenses Net sales 3,677.5 3,677.5 0.0 Other expenses decreased by €270.5m as lease Gross profit 1,619.1 1,619.1 0.0 expenses which are to be capitalised following IFRS Other income 282.1 288.6 6.5 16 were reclassi
Slide 21: Summary Q4
SUMMARY Q4 DOUGLAS concluded another successful quarter as Store business continued to grow and lfl exceeded pre-COVID level E-Commerce increased high sales level and was 97% higher compared to pre-COVID level, sales share at 30.5% Adjusted EBITDA grew to €46m due to higher sales, improved gross pro
Slide 22: First Impressions
First Impressions DOUGLAS
Slide 23: Further Development of Our Strategy
FURTHER DEVELOPMENT OF OUR STRATEGY ONBOARDING: ANALYSIS AND EVALUATION 2018 2020 • ASSESSMENT #FORWARDBEAUTY #FORWARDBEAUTY. • RESHAPE STRATEGY DigitalFirst • ORGANIZATION 23
Slide 24: Omnichannel, DOUGLAS #1 in Both Channels
OMNICHANNEL, DOUGLAS #1 IN BOTH CHANNELS RESILIENT AND PROFITABLE BUSINESS MODEL SALES SHARE STORES AND E-COM (FY) Total sales 3,454m 3,120m 3,650m 83.1% 61.4% 67.2% 2,440m Stores 38.6% 32.8% 1,196m E-Com 16.9% 2018/19 (pre-COVID) 2020/21 2021/22 24
Slide 25: Offer a Flawless Customer Journey
OFFER A FLAWLESS CUSTOMER JOURNEY AN OMNICHANNEL CUSTOMER SPENDS MOST Our 1,837 stores and online shops in 26 countries provide a great platform for our 44 million Beauty Card members1. 1 As of 30 September 2022 DE IT FR ES PL NL Total online only offline only omnichannel Data as of November 2022 (L
Slide 26: Market Developments
MARKET DEVELOPMENTS CUSTOMERS REMAIN LOYAL TO BEAUTY • Beauty remains a resilient category with satisfactory results on key sales events in the current quarter • Customers continue to expect digitalized shopping STRONG START TO THE FINANCIAL YEAR experience fueling E-Commerce growth • After COVID lo
Slide 27: Key Opportunities
KEY OPPORTUNITIES BUILDING UNIQUE BUSINESS MODEL • No. 1 Beauty platform offering unique shopping experience • LFL growth Stores and • ´House of Brands´ - Broad portfolio of attractive and exclusive brands E-Commerce • Increasing profitability • Omnichannel model allowing for seamless integration of
Slide 28: Notice to Recipients
NOTICE TO RECIPIENTS This presentation and any materials distributed in connection herewith (together, Company nor any of its affiliates is under any obligation, and each such entity the “Presentation”) have been prepared by DOUGLAS GmbH (the “Company”) The information in this Presentation does not
Slide 29: Thank you.
Thank you. DOUGLAS
Slide 30: Appendix
Slide 31: Adjustments to EBITDA
ADJUSTMENTS TO EBITDA Consulting fees: EBITDA ADJUSTMENTS Primarily related to OWAC and strategic projects Restructuring costs: (in m €) Q4 2020/21 Q4 2021/22 12M 2020/21 12M 2021/22 Mainly for comprehensive restructuring in Spain Reported EBITDA 57.4 41.5 14.7 253.0 PPA: Former acquisitions Consult
Slide 32: Selected Segmental KPIs Q4 2021/22
SELECTED SEGMENTAL KPIS Q4 2021/22 In m€ REPORTED EBITDA CAPEX Q4 2020/21 Q4 2021/22 Q4 2020/21 Q4 2021/22 DACHNL 20.3 34.0 DACHNL 7.1 12.7 France 14.0 18.7 France 4.7 7.7 Southern Europe 5.6 7.9 Southern Europe 3.8 5.5 Central Eastern Europe 8.6 17.1 Central Eastern Europe 3.7 9.5 Consolidation -0.
Slide 33: Deep Dive into LFL Net Sales Development
DEEP DIVE INTO LFL NET SALES DEVELOPMENT QUARTERLY OVERVIEW LIKE FOR LIKE NET SALES DEVELOPMENT Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 DACHNL 2.6% 11.7% 43.9% 39.5% 11.6% France 10.6% 14.7% 29.4% 27.7% 3.3% Southern Europe 8.1% 24.7% 32.3% 24.9% 12.0% Central Eastern Europe 16.2% 36.
Slide 34: Free Cash Flow Q4 2021/22
FREE CASH FLOW IMPACTED BY ADJ. EBITDA, WORKING CAPITAL AND OTHERS In m€ ADJUSTED FCF DEVELOPMENT 11 FREE CASH FLOW BRIDGE Q4 2021/22 1 -19 Q4 2019/20 Q4 2020/21 Q4 2021/22 46 -14 43 -29 -65 -4 0 1 2 3 -19 -24 -24 4 Adj EBITDA CAPEX Working Capital TAX Others Adj FCF EBITDA Free Cash Flow M&A FCF (P
Slide 35: Net Sales Development by Segment 12M 2021/22
NET SALES DEVELOPMENT BY SEGMENT GROUP 12M 2021/22 Total, in m€ DACHNL FRANCE 1,826 1,499 +21.8% GROUP 699 781 3,650 +11.7% + 21.7% lfl 3,120 +17.0% + 17.5% lfl 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 560 566 + 21.8% lfl +1.1% 464 361 +28.5% + 22.8% lfl
Slide 36: Net Sales Development by Segment: Store Business 12M
NET SALES DEVELOPMENT BY SEGMENT STORE BUSINESS 12M 2021/22 Store business, in m€ DACHNL FRANCE 981 + 28.3% lfl 651 +50.7% GROUP 616 517 +19.2% 2,440 + 60.3% lfl 1,915 +27.4% 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE + 37.4% lfl 481 480 -0.1% + 40.9% lfl
Slide 37: Net Sales Development by Segment: E-Commerce 12M
NET SALES DEVELOPMENT BY SEGMENT E-COMMERCE 12M 2021/22 DACHNL E-Commerce, in m€ FRANCE 848 844 -0.5% 183 165 -9.4% GROUP -5.2% lfl -9.4% lfl 1,204 1,196 -0.7% 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 + -4.0% lfl SOUTHERN EUROPE CENTRAL EASTERN EUROPE 80 86 94 101 +8.1% +7.2% + 8.1% lfl + 7.2
Slide 38: Adjusted EBITDA Development by Segment 12M 2021/22
ADJUSTED EBITDA DEVELOPMENT BY SEGMENT 12M 2021/22 Adjusted EBITDA1, in m€ DACHNL FRANCE 210 GROUP 121 161 +30.5% 108 +12.0% 325 10.7% 11.5% 15.5% 15.5% +49.4% 218 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 1.2% 7.1% 79 Adjusted EBITDA 40 49 +60.5% Margin
Slide 39: Full Year IFRS 16 Effects (II)
FULL YEAR IFRS 16 EFFECTS (II) Adjusted EBITDA1, in m€ DACHNL FRANCE 339 169 GROUP 121 210 602 11.5% 18.6% 15.5% 21.6% 12M 2021/22 12M 2021/22 12M 2021/22 12M 2021/22 pre IFRS 16 post IFRS 16 pre IFRS 16 post IFRS 16 325 SOUTHERN EUROPE CENTRAL EASTERN EUROPE 109 115 79 40 8.9% 17.5% 7.1% 19.2% 17.1
Slide 40: Selected Segmental KPIs 12M 2021/22
SELECTED SEGMENTAL KPIS 12M 2021/22 In m€ REPORTED EBITDA CAPEX 12M 2020/21 12M 2021/22 12M 2020/21 12M 2021/22 DACHNL 51.4 182.6 DACHNL 17.0 21.3 France 75.7 135.5 France 10.5 15.6 Southern Europe -33.1 1.9 Southern Europe 7.1 10.7 Central Eastern Europe 40.1 78.9 Central Eastern Europe 9.9 15.3 Co
Slide 41: Overview Segmental Structure
OVERVIEW SEGMENTAL STRUCTURE STORE BUSINESS, NEW STRUCTURE SINCE Q1 2021/22 DACHNL FRANCE Austria France Germany Monaco Switzerland The Netherlands CENTRAL EASTERN EUROPE Bulgaria SOUTHERN EUROPE Croatia Andorra Czech Republic Italy Estonia Portugal Hungary Spain Latvia Lithuania Poland Romania Slov
Slide 42: P&L Overview 12M 2021/22
P&L OVERVIEW 12M 2021/22 Reported EBITDA: Increased significantly over prior year In m€ 12M 2020/21 12M 2021/22 ∆% due to higher net sales, improved COGS ratio leading to higher gross Net sales 3,119.6 3,677.5 17.9% profit margin, better personnel expenses ratio and rent cost ratio, adj. Net sales 1
Slide 43: Cash Flow Statement
CASH FLOW STATEMENT 12M 2021/22 Cash flow from operating activities CASH FLOW STATEMENT Increased due to EBITDA increase and net working capital management 12M 2020/21 12M 2021/22 Cash flow from investing activities Outflow increased due to Net cash flow from operating activities 75.7 171.8 payment
Slide 44: Full Year IFRS 16 Effects (III)
FULL YEAR IFRS 16 EFFECTS (III) CASH FLOW FROM FREE CASH FLOW LEVERAGE* OPERATING ACTIVITIES 400 7 6.9 500 468 367 350 6 5.6 400 300 5 250 300 4 200 3 200 172 150 2 100 70 100 1 50 0 0 0 pre IFRS 16 post IFRS 16 pre IFRS 16 post IFRS 16 pre IFRS 16 post IFRS 16 44 *Leverage post IFRS 16 including IF
Slide 45: Net Working Capital
NET WORKING CAPITAL Net Working Capital NET WORKING CAPITAL Continues to be a key focus; efficient management In m€ supported by AI-based 217 180 184 replenishment software RELEX Inventory NWC as % of 115 LTM net sales 71 Higher inventory due to early ordering for important Christmas quarter in the
Slide 46: Evolution of Capital Structure
EVOLUTION OF CAPITAL STRUCTURE CASH AND DEBT1 STRUCTURE AS OF 30 SEPT 2022 Senior PIK Notes: m€ x Adj. x Mgmt. Adj. Maturity Pricing In m€ EBITDA3 EBITDA4 › Type of interest payments is generally at Cash and Equivalents 245 Douglas’ discretion › Douglas intends to RCF (€170m Volume)² 0 Jan 26 E+4.75
Slide 47: Premium Store Network Footprint
PREMIUM STORE NETWORK FOOTPRINT ACROSS EUROPE NUMBER OF STORES Limited store openings* Decrease in number of stores driven by Store Optimisation Programme 2,078 1,837 30 Sep 2021 136 (m€) – 133 30 Sep 2022 Store openings 14 1,942 1,704 Store closures -255 Total -241 Sep 21 Sep 22 Own stores Franchis
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