Roadshow presentation Q4 2017 February/March 2018 We passed the 2 - - PowerPoint PPT Presentation
Roadshow presentation Q4 2017 February/March 2018 We passed the 2 billion mark Net revenue, SEK million 2.4% +57.0% CAGR 2,016 2.1% 1,396 Adj. EBIT (0.1)% +44.4% margin (13.1)% 817 521 2014 2015 2016 2017 Warehouse move
February/March 2018
2014 2015 2016 2017
(13.1)% (0.1)% 2.1%
margin Net revenue, SEK million
+57.0% CAGR
2.4%
521 817 1,396 2,016
Warehouse move Listing on Nasdaq Stockholm Launch of physical stores Signing and launch of several key brands
+44.4%
Adjusted EBIT - Group
Adjusted EBIT in SEK million
Net revenue - Group
Net revenue in SEK million
467,3 644,2
Q4 2016 Q4 2017
1 396,4 2 016,4
FY 2016 FY 2017
447,2 626,4
Q4 2016 Q4 2017 +40.1%
1 303,0
FY 2016 FY 2017
Net revenue – Boozt.com
Net revenue in SEK million
48,3 52,3
Q4 2016 Q4 2017
Margin 8.1% Margin 10.3%
29,5 48,2 FY 2016 FY 2017
Margin 2.4% Margin 2.1%
Adjusted EBIT – Boozt.com
Adjusted EBIT in SEK million
47,6 52,0
Q4 2016 Q4 2017
Margin 10.6% Margin 8.3%
16,5 44,1
FY 2016 FY 2017
Margin 1.3% Margin 2.3% +49.4% +44.4% +37.8%
Boozt.com Group
1,946.2
777 787
FY 2016 FY 2017
822 810
Q4 2016 Q4 2017
820 1 057
FY 2016 FY 2017
AOV Q4 True frequency Q4 Active customers
9,1 9,2 Dec 2016 Dec 2017 65 67 Q4 2016 Q4 2017
Customer satisfaction Q4
True frequency AOV (SEK) AOV (SEK)
Order frequency AOV FY
5,2 6,3
Q4 2016 Q4 2017
+21.1% +28.9%
+1.4%
2,15 2,37
FY 2016 YTD 2017
+10.3% Trustpilot and NPS score
Boozt.com
Trustpilot NPS
Black Friday 2016
during the Black Friday weekend
with high customer satisfaction
maximum – with satisfying results
Record-breaking weekend
Physical stores Raising awareness
showcase our beauty department
movie awards gala.
synergies between apparel and beauty Strengthening Boozt as beauty destination Q4 was promising
Index Q3 2017: 100 Index Q4 2017: 335
features continuously
Performance
Beauty by Boozt.com Flagship store
services
adidas and Reebok will be sold on Boozt.com as from late summer 2018 The newly signed agreement kicks off our investment in making Boozt a confident sport and athleisure destination
adidas Boost collection, borrowed from adidas.com
Q4 2016 Q4 2017
Investments fixed assets Q4 Revenue growth Q4
23.6 162.7 FY 2016 FY 2017
1,396.4 2,016.4
FY 2016 FY 2017
7.8 44.0 Q4 2016 Q4 2017
Gross margin Q4
Gross margin (%)
Gross margin FY
Gross margin (%)
45,2% 43,1% Q4 2016 Q4 2017 45,1% 42,7%
FY 2016 FY 2017
+139.0 +36.2
Investments fixed assets FY
Net revenue in SEK million +37.8% SEK million SEK million
Revenue growth FY
Net revenue in SEK million
Group
+44.4%
467.3 644.2
30,7 49,1 FY 2016 FY 2017
Net revenue Q4 (SEK million)
7,9 14,2 Q4 2016 Q4 2017 12,2 3,5 Q4 2016 Q4 2017
1 303,0 1 946,2 FY 2016 FY 2017 447,2 626,4 Q4 2016 Q4 2017
Net revenue Q4 (SEK million) Net revenue Q4 (SEK million) Net revenue YTD (SEK million) Net revenue YTD (SEK million) Net revenue YTD (SEK million) +40.1% +80.7%
+59.8% +49.4%
62,6 21,0 FY 2016 FY 2017
Boozt.com Booztlet.com Other
16,5 44,1 FY 2016 FY 2017
47,6 52,0 Q4 2016 Q4 2017
Adjusted EBIT Q4 (SEK million) Adjusted EBIT Q4 (SEK million) Adjusted EBIT Q4 (SEK million)
0,6 1,2 Q4 2016 Q4 2017 0,1
Q4 2016 Q4 2017
Adjusted EBIT YTD (SEK million) Adjusted EBIT YTD (SEK million) Adjusted EBIT YTD (SEK million)
4,2 5,1 FY 2016 FY 2017 8,8 FY 2016 FY 2017
Margin
Margin –25.1% Margin –4.3% Margin 14.1% Margin 7.3% Margin 8.6% Margin 13.7% Margin 10.4% Margin 2.3% Margin 1.3% Margin 8.3% Margin 10.6%
Boozt.com Booztlet.com Other
Q4 2016 Q4 2017
45.2 43.1
8.1 Q4 2017
Gross margin Marketing cost ratio Depreciation cost ratio Adjusted fulfilment cost ratio Adjusted admin & other cost ratio*
Adjusted EBIT margin
(8.5) (1.0)
10.3
(14.1) (11.3) (12.7) (11.1) (9.6) (1.5)
Share of net revenue, %
45.1 (11.3) (0.9)
2.1
(16.1) (14.7)
Q4 2016 FY 2016 Change
(2.1 pp) 1.4 pp 0.1 pp (1.0 pp) (0.5 pp) 2.2 pp
Change
(2.4 pp) 1.5 pp 1.7 pp (0.0 pp) (0.6 pp) (0.2 pp) 42.7
2.4
(14.5) (13.0) (11.3) (1.5)
FY 2017
*whereof cost of personnel (5.5) (5.8) (0.3 pp) (6.4) 0.1 pp (6.3)
medium term
medium term
For 2018 the the Group expects a net revenue growth above 30%. The adjusted EBIT margin is expected to improve slightly compared to 2017.
range of 25-30% in the medium term
exceeding 6% in the medium term
margin annually as the cost base is further leveraged by net revenue growth
Net revenue growth Adjusted EBIT margin Medium term (3-5 years post IPO) targets remain unchanged
15
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Our vision is to become the leading player in Nordic fashion e-commerce Our mission is to deliver an outstanding online fashion shopping experience with unrivaled customer service
Jesper Brøndum CTO Allan Junge-Jensen CFO Hermann Haraldsson CEO Niels Hemmingsen COO Peter G. Jørgensen CMO
Sept 2017: SEK 170m+
BUILDING NORDIC SCALE
wallet and number of returning customers
2015 - 2016
ONLINE LEADERSHIP
Nordic online market leadership
technology platform
infrastructure
portfolio management
2017 -
Dec 2017
(transactional net revenue)
2011 - 2013
LAUNCH OF BOOZT.COM
launched and multi- brand shop opened
brands
integrated tech platform
Denmark
Aug 2011
SEK 700K
(transactional net revenue) EXPANSION
brands
expansion
Denmark, Sweden and Finland
2014 - 2015
Purpose-built infrastructure enables full control
Ads TV Emails
Marketing
Affiliate
Filter + search Sales advice Fraud check Payment validation Discounts
Sales
Return + refund Open package Review Rating Pickup + delivery
Fulfilment Customer service
Chat Exchange Phone Emails
The solar system The halo
1) Estimated capacity based on 43,500 m2 in total area is ~500,000 bins and ~500 picking robots. 2) Assuming a constant AOV. Source: Company data.
450,000+ SKU
locations Capacity of
3,000,000+
items
Based on AutoStore solution 4 days from
product arrival to in webstore Returns being refunded within
24 hours >2,500
hour in handling capacity
The new warehouse in operational since the end of March 2017 Next day delivery to several Nordic areas
Custom-built to deliver convenience and designed for >6x net revenue2)
One destination for fashion
Curated, contemporary and relevant selection
Carefully selected brands with Nordic appeal Attractive customer characteristics Focus on target groups where convenience is key
Diversified customer base with attractive features
~70% ~85% ~55%
Women Live together Have kids
Customers aged 25-54 represent >75% of net revenue
Well positioned to capture larger share of the Nordic online apparel market
Entry brands Premium brands Commercial
Product segment focus Premium Commercial Entry price Catch-all Curated Brand strategy
Distinct position based on a curated Nordic selection… Favorable unit economics Illustrative Nordic market landscape Boozt’s positioning delivers a high AOV AOV incl. VAT in SEK (Accumulated Q1- Q4 2017)
Selectively active in the Nordic region
787 605 VAT
3) 4)
+62.6%
Adjusted fulfilment cost ratios, in % of net revenue (Accumulated Q1- Q4 2017)
14,5% 26,3%
5) 1) As defined by Euromonitor International. Boozt CAGR based on net revenue excluding VAT (based on Company data). 2) Zalando, H&M, Nelly, Ellos and Stylepit. 3) Boozt.com’s reported AOV excludes VAT. 4) Based on average basket size for accumulated period Q1-Q3 2017 of EUR 62.0 and converted based on EUR/SEK 9.57. Source: Zalando Q3, quarterly statement Zalando has not reported its Q4 results as per Boozt reporting date. 5)Based on reported figures in Zalando Q3, quarterly
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Note: Apparel retail market is defined as the aggregation of the clothing and footwear market (including sports). The market data covers retail sales of apparel through both store-based retailers and non-store retailers. It excludes black market sales (i.e. untaxed, generated within informal retailing) and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded. All data from Euromonitor International used in this section is based on retail sales prices (including VAT), expressed in nominal terms and assumes fixed currency rates against SEK of 9.44 (EUR), 1.07 (NOK), 1.27 (DKK), 10.98 (GPB) and 8.88 (USD). Source: Euromonitor International Beauty and Personal Care 2016 edition, Consumer Electronics 2017 edition, Consumer Appliances 2017 edition, Consumer Health 2017 edition, Apparel and Footwear 2017 edition. Euromonitor doesn’t research Apparel, Consumer Electronics and Consumer Appliances in Finland, therefore to estimate the total Nordic market, management estimates for Finland used as follows: Apparel: SEK 35 billion; Consumer electronics: SEK 35 billion and; Consumer appliances: SEK 6 billion.
33 44 6 11 4 242 100 56 44 34 Apparel Consumer Electronics Beauty and Personal Care Consumer Appliances Consumer Health
Nordic market size (SEKbn)
9 700 9 200 8 600 5 300 US Nordics UK Europe
Total apparel spending per capita (2016 in SEK, rounded to the nearest hundred)
Apparel is one of the largest consumer categories… … driven by high spend per capita
Online Total
Source: Euromonitor International Beauty and Personal Care 2016 edition, Consumer Electronics 2017 edition, Consumer Appliances 2017 edition, Consumer Health 2017 edition, Apparel and Footwear 2017 edition Euromonitor doesn’t research Apparel, Consumer Electronics and Consumer Appliances in Finland, therefore to estimate the total Nordic market, management estimates for Finland used as follows: Apparel: SEK 35 billion; Consumer electronics: SEK 35 billion and; Consumer appliances: SEK 6 billion; Books is based on data for Sweden including e-books, taken from Boken 2017 (Svenska Bokhandlareföreningen and Svenska Förläggareföreningen).
50% 44% 26% 13% 11% 10% Books Consumer electronics Consumer appliances Apparel Consumer health Beauty and personal care
Online penetration by category in the Nordics (2016)
~60% Nordic online apparel
(2016)
Nordic online fashion penetration versus other categories The market remains fragmented
Online penetration still growing strongly across all verticals
Total market
SEK 242bn
SEK ~109bn
SEK ~50bn
Source: Company data and Euromonitor.
Nordic apparel market (2016)
Penetration AND consolidation
Online penetration levels at various stages hint to the market potential
SEK ~30bn
TODAY
@ 13% online penetration @ 20% online penetration
2027?
@ 45% online penetration
Penetration AND consolidation
Logistic is key to succeed and gain market share Brand loyalty is important Importance
Penetration
consolidation
large growth opportunity
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curated selection
”power to the people”
forcing
EASE SPEED PRICE RELEVANCE
Social data Distribution data Boozt solar system Payment data Market data
Data lake Data quantification
Data analysis Data model
§ Customer segmentation § Brand classification § Return patterns § Prediction of next purchase § Personalized product recommendation § Customer service categorisation
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1-2 days Next day Same day Next day Same day 1-2 days
Serving 90% of the Nordic region with 100%
Q1 2018 Delivery reach Current share of
99%
Population (million)
18.8 25.0 0% 80% 95% 30% 90% 3.5 100% 100% 100%
Range
NEW
Cohorts are strong and loyalty is built fast – loyal customers expand their transactions with us
Expected “as is” 2018 revenue from 2017 cohort = 100%
500 1000 1500 2000 2014 2015 2016 2017
Loyal customer Converting to loyal Total Net. Sales (excl. VAT)
Contribution margin development
First year Year + 1 Year + 2 Year + 3 Year + 4 Year + 5
Initial negative contribution from new customers…
Accumulated CLV for Boozt.com
First year Year + 1 Year + 2 Year + 3 Year + 4 Year + 5
Customer lifetime value (CLV)
…followed by steep accumulation in live time value
CLV is defined as gross profit less fulfillment & distribution and marketing costs attributable to a particular customer cohort.
SEK million Q4 2017 Q4 2016 EBITDA 60.9 50.3 EBITDA margin 9.5% 10.8% D&A (9.9) (4.5) Operating profit/loss (EBIT) 51.1 45.8 EBIT margin 7.9% 9.8% Share-based compensation (social charges) 0.7 2.0 Share based compensation 0.6
Adjusted EBIT 52.3 48.3 Adjusted EBIT margin 8.1% 10.3%
APPENDIX
(SEK million unless otherwise indicated) Q4 2017 Q4 2016 GROUP Net revenue 644.2 467.3 Gross margin (%) 43.1% 45.2% Fulfilment cost ratio (%) (12.7%) (14.1%) Marketing cost ratio (%) (11.1%) (11.3%) Admin & other cost ratio (%) (9.8%) (9.0%) Depreciation (%) (1.5%) (1.0%) Adjusted fulfilment cost ratio (%) (12.7%) (14.1%) Adjusted admin & other cost ratio (%) (9.6%) (8.5%) EBIT 51.1 45.8 EBIT margin (%) 7.9% 9.8% Adjusted EBIT 52.3 48.3 Adjusted EBIT margin (%) 8.1% 10.3 Adjusted EBITDA 62.2 52.8 Adjusted EBITDA margin (%) 9.7% 11.3% Cash flow from operations 81.6 68.3 Net working capital 200.4 94.6 Investments
Net debt /- net cash
Equity / asset ratio 57.1% 46.0% Number of employees end of period 224 192
APPENDIX
(SEK million unless otherwise indicated) Q4 2017 Q4 2016 Boozt.com Net revenue 626.4 447.2 EBIT 50.8 45.7 EBIT margin (%) 8.1% 10.2% Adjusted EBIT 52.0 47.6 Adjusted EBIT margin (%) 8.3% 10.6% Site visits (000) 26,966 18,798 Number of orders (000) 786 558 Conversion rate (%) 2.91% 2.97% True frequency 6.3 5.2 Average order value (SEK) 810 822 Active customers (000) 1,057 820 Number of orders per active customer 2,.37 2.15 Booztlet.com Net revenue 14.2 7.9 EBIT 1.2 0.5 EBIT margin (%) 8.3% 6.5% Adjusted EBIT 1.2 0.6 Adjusted EBIT margin (%) 8.6% 7.3% Other Net revenue 3.5 12.2 EBIT (0.9) (0.5) EBIT margin (%) (25.1%) (3.8%) Adjusted EBIT (0.9) 0.1 Adjusted EBIT margin (%) (25.1%) 0.6%
APPENDIX
(SEK million unless otherwise indicated) Dec 31, 2017 Dec 31, 2016 ASSETS Non current assets Intangible assets Web platform 19.5 15.0 Tangible assets Machinery and equipment 155.1 17.6 Deposits 11.8 9.8 Deferred tax assets 92.5 36.8 Total non-current assets 278.9 79.2 Current assets Inventories 571.6 388.8 Accounts receivables 34.0 19.6 Other receivables 38.2 49.7 Current tax assets 0.5 0.4 Prepaid expenses and accrued income 26.9 39.7 Derivatives 4.4
429.7 221.8 Total current assets 1,105.1 720.1 TOTAL ASSETS 1,384.0 799.3
APPENDIX
(SEK million unless otherwise indicated) Dec 31, 2017 Dec 31, 2016 EQUITY AND LIABILITIES Equity Share capital 4.7 3.9 Other capital contributions 1,124.3 689.2 Reserves 0.1
Total equity 790.8 367.3 Non-current liabilities Interest bearing liabilities 70.6 8.6 Other provisions 21.1 16.3 Total non-current liabilities 91.7 24.9 Current liabilities Interest bearing liabilities 30.6 3.4 Accounts payables 282.7 268.8 Other liabilities 62.0 34.6 Derivatives financial instruments 0.3
126.0 100.2 Total current liabilities 501.5 407.1 TOTAL EQUITY AND LIABILITIES 1,384.0 799.3
APPENDIX
The Company’s financial targets set forth above constitute forward-looking information that is subject to considerable
the Company’s industry, business, results of operations and financial condition. Company’s business, results of operations and financial condition, and the development of the industry and the macroeconomic environment in which the Company operates, may differ materially from, and be more negative than, those assumed by the Company’s when preparing the financial targets set out above. As a result, the Company’s ability to reach these financial targets is subject to uncertainties and contingencies, some of which are beyond its control, and no assurance can be given that the Company will be able to reach these targets or that the Company’s financial condition or results of operations will not be materially different from these financial targets.