Investor Presentation | HY 2019 1 A unique value adding proposition - - PowerPoint PPT Presentation

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Investor Presentation | HY 2019 1 A unique value adding proposition Differentiated Long term relation- Broad and relevant sourcing Supply chain ships with A-brand assortment of FMCG excellence suppliers Linking suppliers Delivering to

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Investor Presentation | HY 2019

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Providing customers tailored solutions Long term relationships with A-brand suppliers Broad and relevant assortment of FMCG Serving complex niche markets worldwide Linking suppliers and customers that are difficult to connect Delivering to the right place, at the right time

A unique value adding proposition

Differentiated sourcing Fully bonded supply chain Highly efficient logistical platform Regulatory expertise Supply chain excellence

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Serving a diversified customer base worldwide

Empowering wholesalers and retailers (B2B) Partner in remote distribution Experienced in retail (B2C) Serving complex end-markets in maritime

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Entrepreneurial segments supported by centralised backbone

IT Distribution Legal & Compliance HR Finance & Control Distribution of bonded liquors and health & beauty products to specialty retailers and online end- customers

f 2018 Group turnover

Specialty distribution of FMCG products to maritime and remote markets

f 2018 Group turnover

Specialty retail at high traffic airports and remote locations

f 2018 Group turnover

67% 25% 8%

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Key elements defining

ur model

1 2 3 4 5

Trusted and reliable partner with a clear value proposition Entrepreneurial segments powered by our centralised Group platform Leading positions in attractive channels and specialised markets Track record of strong and consistent profitable growth Focused on organic growth complemented with strategic M&A

VALUE

distribution

ADDING

partner

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Solid sales channels that are exposed to attractive long term trends

Business segments Turnover per segment 2018 B&S Group markets/ channels Contribution to B&S Group turnover 2018

Column1

Channel Market

Outsourcing Fragmentation and complexity Globalisation A-brands and luxury Compliance Value retail E-commerce Travel

Attractive long term trends

40.7% 27.2% 6.7% 7.3% 10.3% 7.8%

€ 1,197 M € 446 M € 137 M

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A defensive profile towards macro economic developments

Robust and global product categories with mainly A- branded products that

utperform in

economic hardship Bonded supplier status limiting the impact

f geopolitical

developments Diversified supplier and customer basis with limited dependency on a single market

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Striving for continuous economies of scale

Investments in logistics and IT solutions on Group level Utilising our global footprint to leverage price position Combining segmental purchasing and sourcing activities

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Firmly focused on continuous organic turnover growth complemented with selective M&A

573 695 816 845 964 1,152 1,338 1,275 1,393 1,633 9 58 38 65 103 114 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Acquisitive Organic IFRS Dutch GAAP Topbrands FragranceNet.com Capi UCVF Alcodis Discontinuation of non-premium-brand perfumes (in million €)

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26 38 47 59 52 65 84 89 106 109 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IFRS Dutch GAAP Turnover CAGR ’09 - ’18 EBITDA CAGR ’09 - ’18 17.3% p.a. IFRS Dutch GAAP

Resulting in a strong track record of profitable growth

Pressure on China luxury gifting Discontinuation of non- premium-brand perfumes 573 677 825 903 1,002 1,152 1,338 1,339 1,495 1,747 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 13.2% p.a.

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Synergy effects

Well positioned to capture growth opportunities

Organic growth Acquisitive growth

Business model fit
Integration focused
n organic growth

Expansion by increasing presence in

ur current markets

Tapping into new products and markets Cross-selling of products to existing customers Utilising the growth of existing customers by matching their increased demand for our products

Strategy Disciplined on price Initially structured as partnership or JV Rapid back office and sourcing integration Boosting organic growth of acquired company Sourcing synergies Centralised backbone – plug & play Value chain expansion Combined market knowledge

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HY 2019 Highlights

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HY 2019 – Financial Highlights

Organic turnover growth

▪ Growth of 7.4% (5.4% at constant currency) ▪ Of this growth, 0.9% stems from FragranceNet.com

EBITDA

▪ EBITDA amounted to € 52.9 M ▪ pre IFRS 16 EBITDA came in at € 48.1 M

Overall turnover growth

▪ 17.1% to € 898.3 M (15.1% at constant currency)

Business segment contribution

▪ HTG +28.5% | B&S +0.5% | Retail +1.6%

Financial position

▪ Solvency close to 34% ▪ Net debt / EBITDA at 2.9

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Key developments HY 2019

Investments on Group level

▪ Expansion of robotised warehouse in HTG segment and combined with FNET technology to further boost Health & Beauty category ▪ Logistics operations in B&S Segment

n track

▪ Acquisition Lagaay Medical Group in B&S Segment enhances single source supply concept ▪ Acquisition Rotterdam & Weeze Airport in Retail Segment strengthens regional store portfolio

Performance on Segment level

▪ Growth driven by Health & Beauty value retail and e-commerce markets ▪ Strengthened international positions, intensified relationships in value

retail and increased focus on the online platform business

▪ Synergies from combined sourcing in Health & Beauty category ▪ Maritime market circumstances remain unfavourable ▪ Opportunities identified in remote markets ▪ Performance in B&S Segment as expected given market conditions and

additional costs in logistics (as communicated) with clear performance improvement in B&S Segment trend noticeable in H2

▪ Lagaay integration into the B&S Segment in preparation ▪ Retail segment performed as expected

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Key figures HY 2019

▪ Turnover grew 17.1%, gross profit grew 19.9%, margin was 14.1% ▪ EBITDA grew 15.2% ▪ IFRS 16 positively impacted EBITDA by € 4.8 M, logistical costs B&S Segment negatively impacted EBITDA ▪ FragranceNet.com straight-line amortisation of intangible fixed assets has a material impact

n contribution to results in H1

from Fnet

Commentary € million (unless otherwise indicated) HY 2019 reported HY 2019 pre IFRS 16 HY 2018 reported Δ (%) reported Profit or loss account Turnover 898.3 898.3 766.9 17.1% Gross profit 126.3 126.3 108.5 19.9% EBITDA 52.9 48.1 45.9 15.2% Depreciation & Amortisation 12.1 7.6 4.4 Profit before tax 35.1 35.5 38.4 (8.6%)

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HY 2019 – Segmental breakdown

€ million HY 2019 HY 2018 Change HTG Turnover 643.5 500.8 28.5% Gross profit 82.9 58.7 41.1% EBITDA 40.4 30.8 31.4% EBITDA margin 6.3% 6.1% 0.2% B&S Turnover 221.3 220.3 0.5% Gross profit 27.2 31.3

13.0%

EBITDA 9.5 11.5

17.1%

EBITDA margin 4.3% 5.2%

0.9%

Retail Turnover 64.7 63.7 1.6% Gross profit 16.5 15.8 4.3% EBITDA 4.2 4.1 0.6% EBITDA margin 6.4% 6.5%

0.1%

▪ HTG overall growth mainly attributable to Health & Beauty category: value retail, e- commerce platforms and online B2C ▪ Organic growth of HTG was 13.6% (12.1% on a constant currency basis): strengthened international positions, intensified relationships in value retail and increased focus on online platform business ▪ B&S EBITDA impacted by additional € 4 M logistics costs (as communicated in CMD) ▪ Retail performed as expected

Commentary

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Overall turnover growth analysis

▪ The HTG segment is the main contributor to Group organic growth in H1 2019 ▪ The inclusion of the acquisition

f FragranceNet.com

contributed € 81.8 M of which € 6.9 M was organic growth stemming largely from combined sourcing advantages ▪ The development of the EUR/USD exchange rate had a positive effect of € 15.3 M on turnover growth

Commentary

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Financial Position

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HY 2019 - Financial position

€ million (unless stated otherwise) HY 2019 HY 2018 Financial position Solvency ratio

33.7% 37.3%

Net debt

329.8 277.0

Net debt / EBITDA

2.9* 2.7

Inventory in days

98 103

Working capital in days

100 107

▪ Financial position within pre- determined objectives ▪ Balance sheet and as such solvency impacted by € 87 M intangibles following Fnet acquisition ▪ Net debt increase mainly resulting from Fnet acquisition and associated consolidation, and the investment in working capital ▪ Increase in working capital: mainly related to inventory supporting our growth expectations; working capital in days improved

Commentary *Taking into account the LTM EBITDA of FragranceNet.com

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Net debt development HY 2019

▪ HY 18 negative cash flow from

perating activities: € 48.2 M

▪ HY 19 only € 0.4 M. Investment in inventory in 2019 set-of by cash inflow from late Q4 2018 sales as indicated at FY18 ▪ Dividend represents payment to minority shareholders FragranceNet.com ▪ Investing activities mainly investment in software € 3.0 M and logistical infrastructure € 7.1M ▪ Net debt excluding IFRS 16

Commentary

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Working capital development

▪ Inventory development (+14%) in line with business development (+17.1%) ▪ Trade receivables in line with business development ▪ Increase in trade payables is fully in line with the increase in turnover and inventory

Commentary

Trade payables Working capital (days) Inventory (days) Trade receivables (days) 112.6 79.2 512.7 (100) 460.3 (107) 431.9 (98) 379.0 (103) 193.4 (38) 160.5 (37) HY 2019 HY 2018

(€ x 1,000) 1,300.0 1,500.0 1,700.0 1,900.0 2,100.0 300.0 350.0 400.0 450.0 500.0 550.0 2016 HY 2016 FY 2017 HY 2017 FY 2018 HY 2018 FY 2019 HY WC Turnover

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Outlook

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Outlook

Management focus

▪ Expanding e-commerce

platform business

▪ Integration of Lagaay into B&S

Segment

▪ Capturing further opportunities

for organic growth

Expectations H2 and beyond

▪ Strong H2 in Health & Beauty with new business opportunities in B2B

distribution to value retailers and e-commerce platforms

▪ Demand in online B2C business of FragranceNet.com continues to grow ▪ Seasonality further amplified and continued trend in sales shifting to late Q4 ▪ Turnover growth and - over time - profitability at stable margins in B&S

Segment by serving volume contracts in a cost-efficient way

▪ Lagaay expected to contribute to maritime and remote business in B&S

segment

▪ New shop openings to contribute to turnover and profitability in Retail

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Appendices

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Our balance as at December 31, 2018

Net debt to be seen in combination with/as part of WC

76% of assets = WC

High turnaround inventory and AR = high turn-around Net debt IFRS 16 and Options following Fnet acq ≠ Net Debt

Other current assets; 29.4 Accounts receivable; 205.7 Inventory; 377.9 Non-current assets; 157.3 Other current liabilities; 93.7 Trade payables; 90.8 Net Debt; 312.7 Equity; 273.1

Assets Equity and Liabilities

AR 27% Invent

49% Other 24%

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Effects of prepayment to suppliers

INCREASED INVENTORY POSITION Inventory already recognised at balance during transit ACCOUNTS PAYABLE REPLACED BY BANK DEBT AP days low compared to ‘classic’ distributor model PRODUCTS AVAILABLE AT BEST PRICES Competitive advantage in the market

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Our balance as at December 31, 2018

Other current assets; 29.4 Accounts receivable; 205.7 Inventory; 377.9 Non-current assets; 157.3 Other current liabilities; 93.7 Trade payables; 246.7 Net Debt; 156.8 Equity; 273.1

Assets Equity and Liabilities

Other current assets; 29.4 Accounts receivable; 205.7 Inventory; 377.9 Non-current assets; 157.3 Other current liabilities; 93.7 Trade payables; 90.8 Net Debt; 312.7 Equity; 273.1

Assets Equity and Liabilities

Net debt/EBITDA 2.9 | Days WC 103 Net debt/EBITDA 1.4 | Days WC 70 Accounts payable at 60 days Accounts payable as is

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Working capital development

WC € mln Turnover € mln 600 800 1,000 1,200 1,400 1,600 1,800 2,000 60 110 160 210 260 310 360 410 460 510 560 1612 1703 1706 1709 1712 1803 1806 1809 1812 1903 Accounts receivable Inventory Accounts payable Working capital Turnover LTM Linear (Working capital) Linear (Turnover LTM) Start of inventory build-up Peak following seasonal sales

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Managing

ur portfolio

1 2 3 4

Controls proven to be effective Provision for doubtful debt (as %

f turnover)

2016: 0.12% 2017: 0.08% 2018: 0.06% Extensive KYC procedures All debtors insured or payment guaranteed by other means IT controls on credit limits Dashboards to follow our portfolio real time

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Managing

ur inventory

1 2 3 4

Controls proven to be effective Write down (as % of turnover) 2016: 0.32% 2017: 0.29% 2018: 0.19% Sourcing worldwide and building up inventory for seasonal sales Dedicated departments with category management Mainly A-brands with limited exposure to economic hardship Weekly KPI reporting for tracking developments

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Our balance as at December 31, 2018

Balance sheet remained solid post FragranceNet acquisition WC forms main part

f asset side

balance sheet Inventories and receivables partly financed by debt As result of M&A price discipline, goodwill on balance sheet limited (€ 59.9 M)

Other current assets; 29.4 Accounts receivable; 205.7 Inventory; 377.9 Non-current assets; 157.3 Other current liabilities; 184.5 Net Debt; 312.7 Equity; 273.1 ASSETS EQUITY AND LIABILITIES

Healthy positions with high turnaround and cash generation

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Net debt development 2018

*After dividend distribution Acq. Topbrands 174.1 Increase of 12.1% Turnover +12.5% Increase of 16.3% Turnover +16.8% 30.4

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Tax position explained

Expectations 2019 Delay of tax decrease in Netherlands to 2020 (22.55%) No significant change in composition of result expected January 1, 2018 Transfer pricing agreement for all 100% group companies worldwide

Januari 1, 2018 December 31, 2018

2018 Expected tax charge: 19% Actual tax charge: 21% Result of: ▪ Increased contribution of Topbrands and JTG to result however taxed at 25% ▪ FragranceNet taxed at 28%

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Forward-looking information / disclaimer

This presentation includes forward-looking statements. Other than reported financial results and historical information, all statements included in this presentation, including, without limitation, those regarding our financial position, business strategy and management plans and objectives for future operations, are, or may be deemed to be, forward-looking statements. These forward- looking statements may be identified by the use of forward-looking terminology, including the terms ''believes'', ''estimates'', ''plans'', ''projects'', ''anticipates'', ''expects'', ''intends'', ''may'', ''will'' or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements are based on our current expectations and projections about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond B&S Group’s ability to control or estimate precisely, such as future market conditions, the behaviour of other market participants and the actions of governmental regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be traded, we have no intention or obligation to update forward-looking statements.

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