Investor & Analyst Presentation German Equity Forum, Frankfurt, - - PowerPoint PPT Presentation

Investor & Analyst Presentation

German Equity Forum, Frankfurt, Nov. 23rd – 25th, 2015

• Dr. Cornelius Patt, CEO

Andreas Grandinger, CFO

Investor & Analyst Presentation EKF 201511 | page 2

This document includes supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of zooplus’ financial condition, results of operations

• r cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe

similarly titled financial measures may calculate them differently. This document contains statements related to our future business and financial performance and future events or developments involving zooplus that may constitute forward-looking statements. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of zooplus’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond zooplus’ control, affect zooplus’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of zooplus to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. Further information about risks and uncertainties affecting zooplus is included throughout our most recent annual and interim reports, which are available on the zooplus website, www.zooplus.de. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of zooplus may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. zooplus neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Safe Harbor Statement

Investor & Analyst Presentation EKF 201511 | page 3

194 257 336 427 571 ~ 740 > 900 > 1,100

2010 2011 2012 2013 2014 2015e 2016e 2017e

zooplus strong sales growth will continue and more than € 1.1 bn total sales should be reached already by 2017

Total sales 2010 – 2017e

+ 63 + 79 + 91

in € m, based on organic growth in European countries

33% 31% 27% 34%

Total sales growth

• vs. PY

+ 144 22% + 169 > 160 > 200 22%

New customer sales (1st year) Repeat customer sales Total sales Retention rate

93% 93% 94% 91% 85% 79% 81% 9M 32%

Investor & Analyst Presentation EKF 201511 | page 4

In a large and fragmented niche market zooplus dominates

• nline – and is rapidly catching up with the offline leaders

Market share zooplus and competitors 2014

~ 50 %

market share zooplus online

~ 2.6 % market share online and offline

CAGR: 2011-14: 30%

Net sales:

€ 0.54 bn

Total pet supplies market Europe (incl. VAT):

~ € 25 bn (~ € 21 bn net)

CAGR: 2011-14: 2 - 3%

Source: Euromonitor, company information, zooplus estimation; 1 online share of total net sales Growth 2014: 7%

Total net sales:

~ € 1.4 bn

Online 2014: ~ € 0.04 bn (+ 3% vs. PY) Growth 2014: 10%

Total net sales:

€ 0.9 bn

Online: € ~ 0.01 bn (< 2%)1

Net sales:

~ € 0.25 bn Other onliners:

Investor & Analyst Presentation EKF 201511 | page 5

» Net sales ~ € 710 m » Double-digit sales growth

rates in all countries

» zooplus market share of

total market 3.4% Net sales 2015e

HU

Source: zooplus net sales, unaudited data, rounded to 5 m EUR steps, growth rates compared to 2014, rounded to 5%p-steps; market shares based on extrapolation of Euromonitor 2013 market data, zooplus estimation 2% growth p.a.

70 m

Total market 2015

Net sales zooplus DK, SE, FI, NO D,A,CH PL, CZ, SK, HU, RO, SI, HR, BG, TR, GR ES, PT

zooplus is the online market leader in all geographies of Europe – with the widest possible base for further growth

NL, BE, LU

+30% +45% +30% +40% +30% +50% +20% +25%

40 m 80 m

235 m

70 m

120 m

40 m 55 m

~710 m

zooplus market share

5.2% 1.6% 2.7%

2.6% 2.1% 4.1% 5.3% 2.9%

3.4%

21 bn

Size of total market

• ffline and online

(net sales)

Investor & Analyst Presentation EKF 201511 | page 6

94%

Customer loyalty – the winning factor of the business model – is further improving

Retention rates – Cohort analysis (Net sales incl. VAT in € m)

90 86 85 86 ~ 510 55 46 45 44 ~ 200 100 62 56 55 125 87 79 135 105 174 2011 2012 2013 2014 2015e 100% 84% 98% 63% 90% 70%

Ø 79% Ø 85%

<=2009 <=2009 <=2009 2010 a+1 2010 a+2 2010 a+3 2011 a 2011 a+1 2011 a+2 2012 a 2012 a+1

Ø 91%

2013 a 2014 a <= 2009 to 2014 a+1

91%

+ 3 %p

2015 a 2013 a+1 2012 a+2 2011 a+3 2010 a+4 <=2009

78% 99% 99% 101% 94%

Ø 94%

Reading example: 2011 a+1= sales of 2011’s new customers in 2012

Investor & Analyst Presentation EKF 201511 | page 7

Account value and customer account retention increase significantly with length of customer life

151 235 235 242 256 273 354

a a+1 a+2 a+3 a+4 a+5 … a+10

Sales per active account 2014 (in €)

Cumulated sales per account created over ten years: € 1,290 100% (1) 77% 61% 54% 50% 46% 33%

Remaining accounts a: year of acquisition

(1): customers with at least one consecutive purchase after first transaction.

Investor & Analyst Presentation EKF 201511 | page 8

Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in 9M 2015

Gross Margin & Cost structure

4.8% 4.5% 3.7% 3.4% 3.3% 7.0% 4.8% 4.0% 4.1% 3.9% 22.9% 21.7% 20.2% 19.2% 18.7% 5.8% 2.5% 1.7% 1.4% 1.2%

2011 2013 2014 9M 2015 Q3 2015

» Margin reduction

mainly due to higher food share and exchange rate effects

» Extremely efficient

marketing and new customer acquisition

» Further cost reduction

in logistics

» Scaling effects in

personnel 40.5% 29.6%

IT/Admin/Payment (incl. depreciation & interest) Advertising/ Marketing Logistics Personnel in % of total sales

28.1% 27.1%

31.2% 29.8% 34.5%

Gross Margin

30.1%

… 33.5% 9M 2015

38.9%

Investor & Analyst Presentation EKF 201511 | page 9

Unit economics will further improve in logistics

20.2% 18.1% 13.8% 14.1% 15.0% 23.9% 20.6%

zooplus logistics all-in zooplus logistics

• nly

variable PL CZ DE ES ES

Logistics costs1 2014

1 Inbound & outbound logistics, line haul, distribution, packaging as a percentage of total sales best-in-class Q3 2015

Investor & Analyst Presentation EKF 201511 | page 10

zooplus continues on its profitable growth path

in € m

6.1 9.1

9M 2014 9M 2015

Earnings before tax (EBT)

+ 3.0

In % total sales

1.5 % 1.7 % 1.6 % 1.2 %

» Total sales growth + 32% » Accessories sales growth

impacted by FX development

» FX impact on purchasing costs

compensated by higher other income and cost savings

» Start-up costs of new French

fulfillment center compensated by additional efficiency gains.

Investor & Analyst Presentation EKF 201511 | page 11

zooplus shows largely positive results in repeat customer business, overall result impacted by customer acquisition

Net sales & EBT distribution 2014 (€ m) - unaudited

Net sales % of total z+ EBT EBT- margin

174 32%

• 6
• 3%

Net sales % of total z+ EBT EBT- margin

369 68% 15 + 4%

New customers

(sales in the year of acquisition)

Repeat customers

(consecutive year’s sales)

Total zooplus EBT zooplus 2014: € 8.8 m

» Further efficiency gains especially from continued built-up of pan-European logistics » Scaling effects in IT/Admin and personnel » Strategic advantages from size (purchasing power / private label)

Outlook:

Investor & Analyst Presentation EKF 201511 | page 12

Countries with optimized supply chains show EBT-margins for repeat customer business of 5% already today

Net sales % of total z+ EBT EBT- margin

80 15%

• 3
• 3%

94 17%

• 3
• 3%

174 32%

• 6
• 3%

Net sales % of total z+ EBT EBT- margin

218 40% 1 1 + 5% 151 28% 4 + 3% 369 68% 15 + 4%

New customers

(sales in the year of acquisition)

Repeat customers

(consecutive year’s sales) Direct / optimized supply chain 1 Indirect / intermediate stage supply chain 2

Total EBT zooplus 2014: € 8.8 m

1 DE, AT, CH, NL, BE, PL, CZ 2 Other countries Source: zooplus data (unaudited)

Net sales & EBT distribution 2014 (€ m) - unaudited

Investor & Analyst Presentation EKF 201511 | page 13

Logistics capacity will be doubled in the next three years, product quality and efficiency will further improve

2013 Q1/2015 Fulfillment center (FC) Potential FC under investigation 2009

» FC in Chalon-sur-Saône started

in Q1/2015

» Capacity increase in other existing

fulfillment centers

» Overall capacity increase by 40%

since beginning of 2015

» All FCs operated by partners;

no capex for zooplus

» Orderrouting and packing algorithms

intellectual property of zooplus

2000/2011

Q1/2015

Investor & Analyst Presentation EKF 201511 | page 14

zooplus logistics system is a complex network solution between fulfillment centers and destination countries

Example Cat‘s Best Ökoplus (cat litter): article flow between fulfillment centers and country of destination for last 91 days

Country of destination Fulfillment center

WRO TIL HOE SBX CHA

Investor & Analyst Presentation EKF 201511 | page 15

zooplus logistics structure is tailor-made for heavy and bulky products in inbound and outbound logistics

amazon logistics

(example)

zooplus logistics

Source: zooplus Source: DiePresse.com; dpa

Investor & Analyst Presentation EKF 201511 | page 16

zooplus shareholder structure is very much focused on growth and mid-term value creation

November 2015

Capital Research 12.68% Ruane, Cunniff & Goldfarb 10.01% Management 5.34% Others 50.85% Maxburg Beteili- gungen GmbH &

• Co. KG 13.67%

Deutsche Asset & Wealth 4.23%

Source: information from notification of voting rights and company information; data as of November 19th, 2015

• No. of shares: 6,991,478

Market cap: ~ € 910 m Jan 2nd, 2015: € 66.70 Nov 19th, 2015: € 130.00 Delta: + 95% Financial calendar 2016:

Jan 28th: Preliminary sales 2015 March 23rd: Annual results 2015 April 21st: Preliminary sales Q1 2016 May 19th: Q1 report 2016 Pelham Capital 3.22%

Investor & Analyst Presentation EKF 201511 | page 17

Liquidity in the zooplus stock has strongly increased

Ø per day € 417 k 2014 2015

Daily trading volume in € Source: Deutsche Börse (xetra), data until October 30th, 2015

Ø per day € 1,500 k

Burda < 50% share in zooplus zooplus capital increase

Investor & Analyst Presentation EKF 201511 | page 18

Current guidance for total sales and EBT

2015e ~ 740 + 30 % Total sales (€ m) 2014 571 + 34 % EBT (€ m) ~ 12 8.8

Guidance

Net sales (€ m) ~ 710 + 31 % 543 + 33 %

Investor & Analyst Presentation EKF 201511 | page 19

In summarizing : zooplus – a sustainable growth story

Attractive market with further growth potential (market volume ~ € 25 bn) Market leader in e-commerce, closing up on the biggest offliners Integrated logistics-structure for pan-European sourcing and fulfilment Growth driven by a large and growing loyal customer base Cost leadership – online and across all channels Experienced management team with a share in the company and with a clear and focused strategy 1. 2. 3. 4. 5. 6. Well prepared for future value creation

Investor & Analyst Presentation EKF 201511 | page 20

Back-up: Key Financials

Investor & Analyst Presentation EKF 201511 | page 21

Key Financials Q3 2015

P&L in € m Q3 2015 Q3 2014 ∆ ∆ ∆ ∆ abs ∆ ∆ ∆ ∆%p Total sales 187.2 146.4 ∆ abs. 40.8 ∆ in % 27.8% COGS 130.9 69.9% 100.8 68.9% 30.1 1.1%p Logistics 35.1 18.8% 29.2 19.9% 5.9

• 1.2%p

Payment 1.7 0.9% 1.6 1.1% 0.1

• 0.2%p

Customer acquisition 2.2 1.2% 2.6 1.8%

• 0.4
• 0.6%p

Personnel 6.1 3.3% 5.1 3.5% 1.0

• 0.2%p

G&A 5.3 2.8% 3.9 2.7% 1.4 0.1%p EBITDA 5.8 3.1% 3.1 2.1% 2.7 1.0%p I&DA 0.3 0.1% 0.3 0.2% 0.0

• 0.1%p

EBT 5.5 2.9% 2.8 1.9% 2.7 1.0%p

Investor & Analyst Presentation EKF 201511 | page 22

Profit & Loss 9M 2015

in € m 9M 2015 9M 2014 abs % abs % Sales 511.0 96.2% 384.8 95.4% Other income 20.2 3.8% 18.5 4.6% Total sales 531.2 100.0% 403.4 100.0% Cost of materials

• 372.8
• 70.2%
• 276.0
• 68.4%

Personnel costs

• 18.1
• 3.4%
• 15.6
• 3.9%

Depreciation

• 0.6
• 0.1%
• 0.5
• 0.1%

Other expenses

• 130.5
• 24.6%
• 104.8
• 26.0%

thereof logistics / fulfillment (-102.2)

• 19.2%

(-81.9)

• 20.3%

thereof marketing (-7.5)

• 1.4%

(-7.0)

• 1.7%

thereof payment (-5.5)

• 1.0%

(-4.9)

• 1.2%

thereof other costs (-15.3)

• 2.9%

(-11.0)

• 2.7%

Earnings before interest and taxes (EBIT) 9.3 1.7% 6.4 1.6% Financial income 0.0 0.0% 0.0 0.0% Financial expenses

• 0.2

0.0%

• 0.3
• 0.1%

Earnings before taxes (EBT) 9.1 1.7% 6.1 1.5% Taxes on income

• 3.4
• 0.6%
• 2.3
• 0.6%

Consolidated net result 5.7 1.1% 3.8 0.9% Differences from currency translation

• 0.3
• 0.1%

0.1 0.1% Hedge reserve

• 1.2
• 0.2%

1.3 0.3% Items that may be relclassified subsequently to profit or loss

• 1.5
• 0.3%

1.4 0.4% Comprehensive income 4.2 0.8% 5.2 1.3% Earnings per share in € basic 0.82

• 0.62
• diluted

0.80

• 0.60

Investor & Analyst Presentation EKF 201511 | page 23

Balance Sheet as of Sep. 30th, 2015

Assets Equity and Liabilities

in € m

• Sep. 30th, 2015
• Dec. 31st, 2014

∆ ∆ ∆ ∆ abs A. Non-current assets I. PP&E 1.2 0.8 0.5 II. Intangible assets 9.4 8.6 0.8 III. Other financial assets 0.0 0.0 0.0 IV. Deferred tax assets 2.7 4.2

• 1.5

Total non-current assets 13.4 13.6

• 0.2

B. Current assets I. Inventories 60.6 65.0

• 4.4

II. Advance payments 2.4 0.5 1.9 III. Accounts receivable 15.2 12.1 3.1 IV. Other current assets 7.4 13.1

• 5.7

V. Derivative financial instruments 0.5 2.3

• 1.8

VI. Cash and cash equivalents 43.4 32.0 11.4 Total current assets 129.5 125.0 4.5 142.9 138.6 4.3 in € m

• Sep. 30th, 2015
• Dec. 31st, 2014

∆ ∆ ∆ ∆ abs A. Equity I. Capital subscribed 7.0 7.0 0.0 II. Capital reserves 92.6 92.0 0.6 III. Other reserves 0.2 1.7

• 1.5

IV. Profit and Loss carried forward

• 8.7
• 14.5

5.8 Total equity 91.0 86.2 4.8 B. Non-current liabilities 1.6 1.2 0.3 C. Current liabilities I. Accounts payable 19.3 23.4

• 4.1

II. Other current liabilities 23.4 20.1 3.3 III. Tax liabilites 0.8 2.0

• 1.2

IV. Provisions 4.9 4.1 0.8 V. Deferred income 1.9 1.5 0.4 Total current liabilities 50.3 51.1

• 0.8

142.9 138.6 4.3

Investor & Analyst Presentation EKF 201511 | page 24

Cash Flow 9M 2015

EBT 9.1 6.1 Cash flow from operating activities 13.6

• 0.9

Cash flow from investing activities

• 1.9
• 3.4

Cash flow from financing activities 0.0 10.4 Net change of cash and cash equivalents 11.5 6.1 Cash on hand, bank deposits, cheques 43.4 11.8 in € m 9M 2015 9M 2014

Investor & Analyst Presentation EKF 201511 | page 25

Profit & Loss 2014

in € m 2014 2013 abs % abs % Sales 543.1 95.1% 407.0 95.3% Other income 27.8 4.9% 19.9 4.7% Total sales 570.9 100.0% 426.9 100.0% Cost of materials

• 393.0
• 68.8%
• 279.8
• 65.5%

Personnel costs

• 21.2
• 3.7%
• 19.3
• 4.5%

Depreciation

• 0.7
• 0.1%
• 0.7
• 0.2%

Other expenses

• 146.8
• 25.7%
• 123.0
• 28.8%

thereof logistics / fulfillment (-115.1)

• 20.2%

(-92.7)

• 21.7%

thereof marketing (-9.9)

• 1.7%

(-10.7)

• 2.5%

thereof payment (-6.9)

• 1.2%

(-6.2)

• 1.4%

thereof other costs (-14.9)

• 2.6%

(-13.4)

• 3.1%

Earnings before interest and taxes (EBIT) 9.2 1.6% 4.2 1.0% Financial income 0.0 0.0% 0.0 0.0% Financial expenses

• 0.4
• 0.1%
• 0.4
• 0.1%

Earnings before taxes (EBT) 8.8 1.5% 3.8 0.9% Taxes on income

• 3.5
• 0.6%
• 2.0
• 0.5%

Consolidated net result 5.2 0.9% 1.8 0.4% Differences from currency translation 0.0 0.0% 0.1 0.0% Hedge reserve 1.6 0.3% 0.1 0.0% Items that may be relclassified subsequently to profit or loss 1.6 0.3% 0.2 0.0% Comprehensive income 6.8 1.2% 1.9 0.5% Earnings per share in € basic 0.83

• 0.29
• diluted

0.80

• 0.80

Investor & Analyst Presentation EKF 201511 | page 26

Balance Sheet as of Dec. 31st, 2014

Assets Equity and Liabilities

in € m

• Dec. 31st, 2014
• Dec. 31st, 2013

∆ ∆ ∆ ∆ abs A. Non-current assets I. PP&E 0.8 0.5 0.3 II. Intangible assets 8.6 4.9 3.7 III. Financial assets 0.0 0.0 0.0 IV. Deferred tax assets 4.2 6.9

• 2.7

Total non-current assets 13.6 12.5 1.1 B. Current assets I. Inventories 65.0 43.7 21.3 II. Advance payments 0.5 0.3 0.2 III. Trade receivables 12.1 10.8 1.3 IV. Other current assets 13.1 10.9 2.2 V. Derivative financial instruments 2.3 0.0 2.3 VI. Cash and cash equivalents 32.0 5.6 26.4 Total current assets 125.0 71.3 53.7 138.6 83.7 54.9 in € m

• Dec. 31st, 2014
• Dec. 31st, 2013

∆ ∆ ∆ ∆ abs A. Equity I. Capital subscribed 7.0 6.1 0.9 II. Capital reserves 92.0 50.3 41.7 III. Other reserves 1.7 0.0 1.7 IV. Profit and Loss carried forward

• 14.5
• 19.7

5.2 Total equity 86.2 36.7 49.5 B. Non-current liabilities 1.2 0.5 0.7 C. Current liabilities I. Trade payables 23.4 16.2 7.2 II. Financial liabilities 0.0 13.0

• 13.0

III. Derivative financial instruments 0.0 0.1

• 0.1

IV. Other current liabilities 20.1 12.7 7.4 V. Tax liabilites 2.0 0.8 1.2 VI. Provisions 4.1 2.7 1.4 VII. Deferred income 1.5 1.0 0.5 Total current liabilities 51.1 46.5 4.6 138.6 83.7 54.9

Investor & Analyst Presentation EKF 201511 | page 27

Cash Flow 2014

EBT 8.8 3.8 Cash flow from operating activities 2.8

• 3.5

Cash flow from investing activities

• 4.7
• 4.6

Cash flow from financing activities 28.1 10.6 Net change of cash and cash equivalents 26.3 2.7 Cash on hand, bank deposits, cheques 32.0 5.6 in € m 2014 2013