investor & analyst presentation€¦ · 18/05/2017 · investor & analyst presentation...

Investor & Analyst PresentationQ1 results, May 18th, 2017

Dr. Cornelius Patt, CEO

Investor & Analyst Presentation 2017Q1 | 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 or 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 orimplied by such forward-looking statements or anticipated on the basis of historical trends. Further information about risks anduncertainties affecting zooplus is included throughout our most recent annual and interim reports, which are available on thezooplus 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 relevantforward-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 whichdiffer 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


zooplus profitable sales growth continued in Q1 2017

» Sales increased by 24% to € 257 m

− Strong European market leader position in online retailing of pet supplies

− Double-digit growth rates in all 30 European markets

− Sales growth continues to be first priority

» Cost leadership position sustained

− Investments in logistics and personnel

» Positive result before tax (EBT) of € 3.4 m

− Increased by € 0.5 m compared to prior year

» Guidance for 2017 confirmed

− Sales of more than € 1,125 m

− Earnings before tax (EBT) between € 17 m and € 22 m


Sales have been growing 24% in Q1 2017

208

257

Q1 2016 Q1 2017

26%

11%

Food Non-Food

+ 24%

exchange rate adjusted + 25%

Sales (€ m) Sales growth by category (in % PY)


Quarter on quarter sales development

in €m

+ 49

257

208

165

121 124

168

140

178

158

200

2014201420142014 2015201520152015 2016201620162016 2014201420142014 2015201520152015 2014201420142014 2015201520152015 2014201420142014 20152015201520152016201620162016 201620162016201620162016201620162017201720172017

221 227

253

Quarter 1 Quarter 2 Quarter 3 Quarter 4


zooplus continues to put sales growth and customer retention first

Sales 2011-2017e (€ m)

1) in local currencies2014

543

2013

407

2012

319

2011

245

+88

+74

+136

2017e

1,125

2016

909

2015

711

+198

+216

+168

79%85%

91%

94%93%1

92%94%1

28%31%33%28%30%38%Sales growth vs. PY

Repeat customer sales

New customer sales (1st year)

24%


Markets continue to be highly competitive – zooplus with clear online market leadership position

Market share zooplus and competitors 2016

Source: Euromonitor; company information, zooplus estimation

CAGR: 2011-16: + 30%2016: € 0.9 bn

Total pet supplies market Europe (incl. VAT):

~ € 26 bn (~ € 22 bn net)

CAGR: 2011-16: 2-3%

Net sales 2016 :

~ € 1.6 bn (+8%)

Online: ~ € 0.05 bn(+ 22% vs. PY)

Net sales 2016e:

Online: ~ € 0.03 bn

Net sales

Other onliners:

Fressnapf

Net sales

~ € 1.0 bn (+9%)

Pets at Home

2016e: ~ € 200 m

~ 50% market share zooplus online

~ 4% market share online and offline


Continued focus on retention and strong sales growth as main drivers for future profitability

Retention

Sales growth

Margin & cost structure

Profitability

Strong sales growth means

» Keep the competition including amazon at a distance

» Faster reach of dominant market position

» Better purchasing terms in all areas (COGS & other services)

» More efficiency gains

» More scale in overhead


Q1 2016 Q1 2017

Markets continue to be price competitive – zooplus well prepared to defend it’s strategic position

Q1 2016 Q1 2017

» Continued focus on sustainable dog/cat food customers for higher life-time-value

» Ongoing price competition in the markets

» zooplus will defend it’s high customer retention

- 0.3 %p

25.6 % 25.3 %

In % of sales

1 Share of food and cat litteron sales

+ 1.7 %p

82.3 % 84.0 %

Q1 2016 Q1 2017

In % of sales

0.0 %p

29.9 % 29.9 %

3 Gross margin + other income on sales2 Sales - CoGS

Total margin 3Gross margin 2Product mix 1


3.2% 3.5%

2.9% 3.1%

19.6% 19.5%

1.6% 1.4%

Q1 2016 Q1 2017

28.5%

Cost ratio in Q1 2017 slightly above prior year due to investments in logistics and personnel

Total margin1

1.7%

1 Gross margin + other income on sales

» Start-up costs for new FC in Antwerp still in Q1 2017 and start up costs for new FC Birmingham

» Investment into more internal IT developers

IT/Admin/ (incl. depreciation & interest)

Advertising/Marketing

Logistics2 Personnel

1.1%1.0%

Payment

28.4%

29.9%29.9%

+ 0.1 %p

Total margin & Cost structure (in % of sales)

2 € 0.5 m logistics costs of Q1 2017 reclassifiedto depreciation according to IAS 17 (finance lease)


5.0% 3.9% 3.5% 3.2% 3.5%

5.6%

2.9% 3.5% 2.7% 3.1%

24.0%

21.2% 20.1%19.4%

1.0%

6.1%

1.8%1.5%

1.4%

19.5%

2011 2014 2015 2016 Q1 2017

28.5%

zooplus will continue in the strong effort to further improve cost leadership position in the category

31.6% 29.8%32.8%Total margin1

…

40.9%

1.7%

1.3% 1.1%1.1%

42.4%

29.8%27.8%

31.1%

1 gross margin + other income on sales

1.4%

29.9%

IT/Admin/ (incl. depreciation & interest)

Advertising/Marketing

Logistics PersonnelPayment

Total margin & Cost structure (in % of sales)

2 € 0.5 m logistics costs of Q1 2017 reclassified to depreciation according to IAS 17


zooplus EBITDA and earnings before tax (EBT) above prior year

3.2

4.5

Q1 2016 Q1 2017

2.9

3.4

Q1 2016 Q1 2017

+ 1.3 + 0.5

In % of sales 1.5 % 1.7 % In % of sales 1.4 % 1.3 %

EBITDA (€ m) EBT (€ m)

€ 0.5 m logistics costs of Q1 2017 reclassified to depreciation according to IAS 17


Cash Flows fromoperatingactivities

Cash Flows frominvestingactivities

Free Cash Flow

Free cash flow continues to be positive in Q1 2017

1.3 % 1.1 %

Cash Flows fromoperatingactivities

Cash Flows frominvestingactivities

Free Cash Flow

Q1 2016 Q1 2017

16.811.4

- 0.5

16.3

- 1.0

10.4

Free Cash Flow (€ m)


» New fulfillment center (FC) in Antwerp started Q4 2016 still in ramp up phase

» Local FC in Birmingham started end of Q1 2017

» All centers managed as one integrated pan-European network

» All FCs operated by partners; no capex for zooplus

» Order routing and packing algorithms intellectual property of zooplus

2013

2015

Fulfillment center (FC)

2009

2015

Q4/2016

Q1/2017

Hubs (DSP)*

*Shown are selected relations from FC to Hub – in total zooplus has ca. 60 relations (40 linehauls + 20 direct DSP connections)

2000/2011

zooplus logistics infrastructure has been further improved


Sales and EBT guidance for full year 2017

Guidance

Profit guidance 2017 based on FX levels January 2017.

909 (+28%) 17.9

EBT (€ m)Sales (€ m)

2017e

2016

>1,125 (>+24%) 17 - 22


Outlook until 2020 – from today’s perspective- Sales

– Sales as driver for further profitability

– Laying the foundation for continued growth after 2020

Sales of more than € 2.0 bn in 2020

» Sales growth

» Customer retention

» Increasing market share

Primary target continues to be:

Up from € >1,125 m in 2017e


Q1 2017 results

Q & A


Back-up: Key Financials


Key Financials Q1 2017

P&Lin € m

Q1 2017 Q1 2016 ∆∆∆∆ abs ∆∆∆∆%p

Sales 256.9 207.8

abs. 49.1

∆ in % 23.6%

Other income11.6

4.5%8.9

4.3%2.7

0.2%p

COGS191.8

74.7%154.7

74.4%37.1

0.2%p

Logistics50.2

19.5%40.7

19.6%9.5

-0.1%p

Payment2.5

1.0%2.2

1.1%0.3

-0.1%p

Customer acquisition3.5

1.4%3.3

1.6%0.2

-0.2%p

Personnel9.0

3.5%6.7

3.2%2.3

0.3%p

G&A7.0

2.7%5.8

2.8%1.2

-0.1%p

EBITDA4.5

1.7%3.2

1.5%1.3

0.2%p

I&DA1.1

0.4%0.3

0.1%0.8

0.3%p

EBT3.4

1.3%2.9

1.4%0.5

-0.1%p

EPS in EUR (basic) 0.28 0.25

Cash Flow

Free Cash Flow 16.2 10.4 5.8


Profit & Loss Q1 2017

in € mQ1 2017 Q1 2016

abs % abs %

Sales 256.9 100.0% 207.8 100.0%

Other income 11.6 4.5% 8.9 4.3%

Cost of materials -191.8 -74.7% -154.7 -74.4%

Personnel costs -9.0 -3.5% -6.7 -3.2%

Depreciation -1.0 -0.4% -0.2 -0.1%

Other expenses -63.3 -24.6% -52.1 -25.1%

thereof logistics / fulfillment (-50.2) -19.5% (-40.7) -19.6%

thereof marketing (-3.5) -1.4% (-3.3) -1.6%

thereof payment (-2.5) -1.0% (-2.2) -1.1%

thereof other costs (-7.0) -2.7% (-5.8) -2.8%

Earnings before interest and taxes (EBIT) 3.5 1.4% 3.0 1.4%

Financial income 0.0 0.0% 0.0 0.0%

Financial expenses -0.1 0.0% -0.0 -0.0%

Earnings before taxes (EBT) 3.4 1.3% 2.9 1.4%

Taxes on income -1.4 -0.5% -1.2 -0.6%

Consolidated net result 2.0 0.8% 1.8 0.8%

Differences from currency translation -0.1 0.0% -0.1 0.0%

Hedge reserve -0.8 -0.3% 1.0 0.5%

Items that may be reclassified subsequently to profit or loss -0.9 -0.4% 0.9 0.4%

Comprehensive income 1.1 0.4% 2.6 1.3%

Earnings per share in €

basic 0.28 - 0.25 -

diluted 0.28 - 0.25 -


Balance Sheet as of March 31st, 2017

Assets Equity and Liabilities

in € m March 31st, 2017 Dec. 31st, 2016 ∆∆∆∆ abs

A. Non-current assets

I. PP&E 15.4 15.9 -0.5

II. Intangible assets 9.1 9.0 0.1

III. Other financial assets 0.0 0.0 0.0

IV. Deferred tax assets 0.0 0.0 0.0

Total non-current assets 24,5 25.0 -0,5

B. Current assets

I. Inventories 70.7 78.8 -8.1

II. Advance payments 4.6 1.6 3.0

III. Accounts receivable 19.6 19.2 0.4

IV. Other current assets 14.6 25.6 -11.0

V.Derivative financialinstruments

1.4 2.5 -1.1

VI. Cash and cash equivalents 70.5 54.9 15.6

Total current assets 181.4 182.6 -1.2

205.9 207.6 -1.7

A. Equity

I. Capital subscribed 7.1 7.1 0.0

II. Capital reserves 95.2 94.8 0.4

III. Other reserves 0.3 1.1 -0.8

IV. Profit and Loss carried forward 6.8 4.9 1.9

Total equity 109.4 107.9 1.5

B. Non-current liabilities 12.2 13.1 -0.9

C. Current liabilities

I. Accounts payable 42.1 47.0 -4.9

IIDerivative financialinstruments

0.0 0.0 0.0

III. Other current liabilities 25.8 22.9 2.9

IV. Tax liabilites 3.5 4.1 -0.6

V. Finance lease 2.2 2.2 0.0

VI. Provisions 8.2 8.1 0.1

VII. Deferred income 2.5 2.4 0.1

Total current liabilities 84.3 86.6 -2.3

205.9 207.6 -1.7

in € m March 31st, 2017 Dec. 31st, 2016 ∆∆∆∆ abs


Cash Flow Q1 2017

EBT 3.4 2.9

Cash flow from operating activities 16.8 11.4

Cash flow from investing activities -0,5 -1.0

Free cash flow 16.2 10.4

Cash flow from financing activities 0.6 0.0

Net change of cash and cash equivalents 15.6 10.3

Cash on hand, bank deposits 70.5 55.9

in € m Q1 2017 Q1 2016

investor & analyst presentation€¦ · 18/05/2017 · investor & analyst presentation...

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