2011 first half results 4 august...

2011 First Half Results

4 August 2011

The information contained in this document is confidential and proprietary to YOOX Group

SLIDE 2

TABLE OF CONTENTS

BUSINESS DEVELOPMENTS AND RESULTS HIGHLIGHTS

FIRST HALF 2011 FINANCIAL ANALYSIS

APPENDIX


SLIDE 3

UPDATE ON LATEST BUSINESS DEVELOPMENTS

Business Lines

Signed a new 5-year contract with Armani S.p.A. for the launch of armani.com in Europe, US, Japan and China in 2H2011

Launched dolcegabbanastore.com in Europe, US and Japan in July 2011; extension to China planned for August 8, 2011

Renewed marni.com and valentino.com contracts for another 5 years

Launched bikkembergs.com in Europe in June 2011

Signed contract with Industries S.p.A. for the launch of moncler.com in Europe and US in 3Q2011

Launched y-3store.com and brunellocucinelli.com in Europe, US and Japan in March 2011

Extended Marni and Bally Online Stores to China in March and May 2011 respectively, Diesel Online Store to Japan in February 2011

Added the Just Cavalli line to robertocavalli.com in February 2011 and Jil Sander Navy to jilsander.com in January 2011

thecorner.com will be the internet retailer of the prestigious "CFDA / Vogue Fashion Fund (CVFF)" initiative promoted by the CFDA

and Vogue America to reward the talent of American designers

Technological Innovation

Launched yoox.com release 9.5 (strengthened integration with Facebook) and yoox.com native application for Android

Optimised thecorner.com for iPad and launched thecorner.com web-app for iPhone and Android with an integrated fast check-out

Operations

New automated global operations and distribution platform to be completed ahead of schedule by mid-August 2011 - first orders

processed by the new automated system from mid-June 2011

International Expansion

Set up operations in Hong Kong to expand YOOX’s presence in the Asia-Pacific region (excluding Mainland China and Japan)

Increased number of countries served to over 100


SLIDE 4

OUR MONO-BRAND PARTNERS

BRAND LINES BRAND LINES

2009

armani.com

moncler.com

dolcegabbanastore.com

brunellocucinelli.com

2011

zegna.com

maisonmartinmargiela.com

zeishouse.com …

albertaferretti.com

napapijri.com

giuseppezanottidesign.com2010

2009

dsquared2.com

bally.com

moschino.com

2008

emiliopucci.com

energie.it

misssixty.com

stoneisland.com

2007

marni.com

2006

diesel.com

dandgstore.com

cpcompany.com

emporioarmani.com

valentino.com

since 2010

jilsander.com

since 2011

costumenational.com

since 2010

coccinelle.com

2009

bikkembergs.com

robertocavalli.com

since 2011

y-3store.com


SLIDE 5

FIRST HALF ENDED JUNE 30, 2011 - RESULTS HIGHLIGHTS

Key Performance Indicators

9.2m monthly unique visitors (vs. 8.1m in 1H2010)

961 thousand orders (vs. 717 thousand in 1H2010)

Average Order Value of €173 (vs. €174 in 1H2010)

698 thousand active customers (vs. 532 thousand in 1H2010)

Key Financials

Net Revenues at €131.2m (vs. €96.6m in 1H2010)

Increased contribution from international markets, which now account for 78.2%1 of Net Revenues (vs. 75.6%1 in 1H2010)

EBITDA Excluding Incentive Plan Costs at €10.1m (vs. €8.2m in 1H2010)

Net Income at €2.9m (vs. €3.3m in 1H2010)

Net Cash at €4.1m (vs. €22.8m of Net Cash at Dec. 2010)

1. Excludes Not Country Related


SLIDE 6

TABLE OF CONTENTS



APPENDIX


SLIDE 7

KEY PERFORMANCE INDICATORS

532

698

5.0 4.9

3.14.3

1H10 1H11

Monthly Unique Visitors (m)¹

Active Customers2 (‘000) – Group3

# Orders (‘000) - Group

1.Source: SiteCatalyst for yoox.com; Google Analytics for thecorner.com and the Online Stores

2.Active Customer is defined as a customer who placed at least one order in the 12 preceding months

3.Include Active Customers of the Online Stores

8.1

9.2

1H 2010 1H 2011

1H 2010 1H 2011

Multi-brand Mono-brand

1H 2010 1H 2011 Trend in multi-brand visitors

reflects 1) optimised web

marketing investments

towards higher conversion

rate channels in order to

attract new qualified

customers; 2) strengthened

retention rate thanks to CRM

activities on existing

customers. As a result, web

marketing costs over multi-

brand net revenues

decreased versus 1H 2010

717

961

174173

Average Order Value (€) - Group

1H 2010 1H 2011


SLIDE 8

NET REVENUES BREAKDOWN BY BUSINESS LINE AND GEOGRAPHY

2Q10 2Q11

1H2010 1H2011

74.5%

25.5%

76.5%

23.5% 23.2%

76.8%

27.0%

73.0%

26.5%

54.8%

Net Revenues by Business Line

1H 2010 1H 2011

35.9%

2Q 2010 2Q 2011

33.0%

Net Revenues by Geography

Y-o-Y

Growth

32.5%

47.0%

€46.3m€61.5m

2Q 2010 2Q 20111H 2010 1H 2011

1. Not Country Related

2. At constant exchange rates, North America contributed 20.3% to the Group's Net Revenues in 1H2011 and 21.5% in 2Q2011

49.5%

19.3%2 21.4%

6.4%3.4%

47.0%

20.4%24.7%

6.4%1.5%

48.2%

19.5%2 21.6%

6.4%4.3%

48.1%

19.6%24.1%

6.3%1.9%

€96.6m

€131.2m

Italy

Rest of Europe

North America

Japan

RoW + NCR 1

Multi-Brand

Mono-Brand


SLIDE 9

YOOX GROUP PROFIT & LOSS

2Q 20101H 2010 1H 2011 2Q 2011

Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro

In this presentation, second quarter figures are calculated as the difference between the first-half results and the first-quarter results of the same year

Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation

EBITDA Excluding Incentive Plan Costs calculated adding back to EBITDA the costs associated with incentive plans in each period

(€m)

Net Revenues 96.6 131.2 46.3 61.5

growth 41.4% 35.9% 39.2% 33.0%

COGS (59.4) (82.2) (27.9) (37.5)

Gross Profit 37.1 49.1 18.4 24.1

% of Net Revenues 38.4% 37.4% 39.8% 39.1%

Fulfillment (10.0) (14.4) (5.0) (7.3)

% of Net Revenues 10.4% 11.0% 10.9% 11.9%

Sales & Marketing (11.4) (14.7) (5.8) (7.2)

% of Net Revenues 11.8% 11.2% 12.6% 11.7%

EBITDA Pre Corporate Costs 15.7 20.0 7.5 9.6

% of Net Revenues 16.3% 15.3% 16.3% 15.6%

General & Administrative (8.6) (12.0) (4.6) (6.1)

% of Net Revenues 8.9% 9.2% 10.0% 10.0%

Other Income/ (Expenses) (0.2) (0.1) 0.1 0.2

% of Net Revenues 0.2% 0.1% 0.1% 0.3%

EBITDA 6.8 7.9 2.9 3.6

% of Net Revenues 7.1% 6.0% 6.3% 5.8%

Depreciation & Amortisation (1.5) (2.8) (0.8) (1.3)

% of Net Revenues 1.6% 2.1% 1.8% 2.1%

Operating Profit 5.3 5.1 2.1 2.3

% of Net Revenues 5.5% 3.9% 4.5% 3.7%

Net Financial Income / (Expenses) 0.3 (0.2) 0.1 (0.0)

Profit Before Tax 5.6 4.9 2.2 2.3

% of Net Revenues 5.8% 3.8% 4.8% 3.7%

Taxes (2.3) (2.0) (0.8) (1.0)

Net Income 3.3 2.9 1.4 1.3

% of Net Revenues 3.5% 2.2% 2.9% 2.0%

EBITDA Excluding Incentive Plan Costs 8.2 10.1 4.0 4.5

% of Net Revenues 8.4% 7.7% 8.6% 7.4%


SLIDE 10

EBITDA ANALYSIS BY BUSINESS LINE

€(8.9)m

€(12.2)m

€(4.6)m€(6.0)m

1H2010 1H2011 GAP 2Q2010 2Q2011

€2.9m€3.6m

€3.8m€5.9m

€1.7m€3.1m

1H2010 1H2011 GAP 2Q2010 2Q2011

€11.9m

€14.2m

€5.8m€6.5m

1H2010 1H2011 GAP 2Q2010 2Q2011

€6.8m€7.9m

# Online Stores Open

20 26

2Q 2010 2Q 2011

Note: Multi-brand and Mono-brand EBITDA Pre Corporate Costs include all costs directly associated with the business line, including COGS, Fulfillment, Sales & Marketing (all net of D&A);

Corporate Costs include General & Administrative costs (net of D&A) and Other Income/ Expenses

% of Net

Revenues

EBITDA Evolution

Multi-brand EBITDA

Pre Corporate CostsCorporate Costs

Mono-brand EBITDA

Pre Corporate Costs

% of

Multi-

brand Net

Revenues

14.5%16.1% 14.5% 16.3%

7.1% 6.0% 6.3% 5.8%

% of

Mono-

brand Net

Revenues

% of

Group

Net

Revenues

1H

2010

1H

2011

18.5%16.9% 17.6% 16.2% 9.7%9.2% 9.3% 9.9%

1H 2010 1H 2011

1H

2010

1H

2011

1H

2010

1H

2011

2Q

2010

2Q

2011

2Q

2010

2Q

2011

2Q

2010

2Q

2011


SLIDE 11

FROM EBITDA TO NET INCOME

1H 2011

1H 2010

€10.1m

€(2.2)m

€7.9m

€(2.8)m

€5.1m

€(0.2)m

€(2.0)m

€2.9m

EBITDA Excl. Incentive Plan Costs

Incentive Plan Costs EBITDA D&A EBIT Net FinancialIncome / (Expenses)

Taxes Net Income

€8.2m

€(1.3)m

€6.8m

€(1.5)m

€5.3m €0.3m

€(2.3)m

€3.3m

EBITDA Excl. Incentive Plan Costs

Incentive Plan Costs EBITDA D&A EBIT Net Financial Income / (Expenses)

Taxes Net Income

% of Net

Revenues

% of Net

Revenues 8.4% 7.1% 5.5% 3.5%

7.7% 6.0% 3.9% 2.2%


SLIDE 12

YOOX GROUP SUMMARY BALANCE SHEET

1H 2011FY 20101H 2010

(€m)

Net Working Capital 20.9 24.8 38.2

Non Current Assets 14.0 21.5 31.8

Non Current Liabilities (excl. financial liabilities) (0.6) (0.4) (0.3)

Total 34.3 45.9 69.6

Net Financial Debt / (Net Cash) (25.1) (22.8) (4.1)

Shareholders' Equity 59.4 68.7 73.8

Total 34.3 45.9 69.6


SLIDE 13

41.5%

46.6%46.1%

32.4%

35.6%34.8%

1H2010 FY2010 1H2011

Inventories as % of Multi-brand Net Revenues Inventories as % of Group Net Revenues

NET WORKING CAPITAL EVOLUTION

1H 2011

Inventory Level Evolution

FY 20101H 2010

Net Working Capital

1. Percentages calculated on LTM Net Revenues

11

1 1

(€m)

Inventories 58.5 76.3 86.5

Trade Receivables 5.7 9.4 9.0

Trade Payables (34.5) (48.9) (48.4)

Other Receivables / (Payables) (8.8) (12.0) (8.9)

Net Working Capital 20.9 24.8 38.2

as % of Net Revenues 11.6% 11.6% 15.3%


SLIDE 14

YOOX GROUP NET FINANCIAL POSITION EVOLUTION

€(22.8)m

€2.9m

€2.8m€2.2m

€(10.2)m

€(3.2)m

€(12.1)m€(1.1)m

€(4.1)m

FY2010Net Cash Net Income D&A Incentive Plan Costs

Changein Inventories

Change inReceivables/Payables Investments Other

1H2011Net Cash

Net Financial Position

Net Financial Position Evolution

1. Includes Trade Receivables, Trade Payables, Other Receivables / (Payables)

2. Mainly refers to deferred tax assets and the impact of exchange rates resulting from the consolidation of foreign subsidiaries

1H 2010 FY 2010 1H 2011

1 2

Medium/long-term

line of credit

mainly used to

finance the new

highly-automated

global operations

and distribution

platform

(€m)

Cash and Cash Equivalents (12.0) (24.2) (12.1)

Other Current Financial Assets (14.6) (5.1) (0.1)

Current Financial Assets (26.6) (29.3) (12.2)

Current Financial Liabilities 0.6 5.6 1.9

Long Term Financial Liabilities 0.9 0.8 6.1

Net Financial Debt / (Net Cash) (25.1) (22.8) (4.1)


SLIDE 15

€2.7m

€5.8m

YOOX GROUP CASH FLOW STATEMENT

2Q 2010 2Q 2011 1H 2010 1H 2011

Cash Flow Statement

Capital Expenditure

1H 2010 1H 20112Q 2010 2Q 2011

% of Net Revenues 4.2% 10.1%5.9% 9.4%

€4.0m

€13.3m

(€m)

Cash and Cash Equivalents at Beginning of Period 10.4 12.3 35.0 24.2

Cash Flow from Operations (4.0) (0.7) (4.8) (6.7)

Cash Flow from Investment Activities (2.4) (5.9) (3.7) (12.1)

Sub Total (6.4) (6.6) (8.5) (18.7)

Cash Flow from Financing Activities 7.9 6.4 (14.6) 6.6

Cash Flow 1.5 (0.2) (23.1) (12.1)

Cash and Cash Equivalents at End of Period 12.0 12.1 12.0 12.1

Increase in capital

expenditure mainly

related to higher

investments in

technology

developments and

automation of global

operations and

distribution platform


SLIDE 16

TABLE OF CONTENTS



APPENDIX


SLIDE 17

YOOX GROUP PROFIT & LOSS EXCLUDING INCENTIVE PLAN COSTS

2Q 20101H 2010 1H 2011 2Q 2011(€m)

Net Revenues 96.6 131.2 46.3 61.5

growth 41.4% 35.9% 33.0%

COGS (59.4) (82.2) (27.9) (37.5)

Gross Profit 37.1 49.1 18.4 24.1

% of Net Revenues 38.4% 37.4% 39.8% 39.1%

Fulfillment Excl. Incentive Plan Costs (10.0) (14.3) (5.0) (7.2)

% of Net Revenues 10.3% 10.9% 10.9% 11.8%

Sales & Marketing Excl. Incentive Plan Costs (11.1) (14.0) (5.6) (6.9)

% of Net Revenues 11.5% 10.7% 12.1% 11.2%

EBITDA Pre Corporate Costs 16.1 20.8 7.8 9.9

% of Net Revenues 16.6% 15.9% 16.8% 16.1%

General & Administrative Excl. Incentive Plan Costs (7.7) (10.6) (3.9) (5.6)

% of Net Revenues 8.0% 8.1% 8.4% 9.0%

Other Income/(Expenses) (0.2) (0.1) 0.1 0.2

% of Net Revenues 0.2% 0.1% 0.1% 0.3%

EBITDA Excluding Incentive Plan Costs 8.2 10.1 4.0 4.5

% of Net Revenues 8.4% 7.7% 8.6% 7.4%


SLIDE 18

FOCUS ON INCENTIVE PLAN COSTS

% of

Total

% of

Total

% of

Total

% of

Total

1H

2010

1H

2011

2Q

2010

2Q

2011

(€m)

Fulfillment (10.003) (14.376) (5.045) (7.303)

of which Incentive Plan Costs (0.031) 2.3% (0.092) 4.2% (0.015) 1.5% (0.054) 5.8%

Sales & Marketing (11.409) (14.660) (5.845) (7.187)


General & Administrative (8.623) (12.016) (4.648) (6.144)


Incentive Plan Costs (1.319) 100.0% (2.194) 100.0% (1.039) 100.0% (0.933) 100.0%

EBITDA Reported 6.834 7.885 2.928 3.594

% of Net Revenues 7.1% 6.0% 6.3% 5.8%

Incentive Plan Costs (1.319) (2.194) (1.039) (0.933)

EBITDA Excl. Incentive Plan Costs 8.153 10.079 3.966 4.527

% of Net Revenues 8.4% 7.7% 8.6% 7.4%


SLIDE 19

Federico Marchetti 7,090,501 11.1% 2,411,853 4.6%

Management team and other stock option holders 6,177,704 9.7%

Sub-total 13,268,205 20.8% 2,411,853 4.6%

Balderton Capital 5,870,280 9.2% 5,870,280 11.1%

Red Circle 3,622,430 5.7% 3,622,430 6.8%

Federated 3,055,784 4.8% 3,055,784 5.8%

JP Morgan Asset Management 2,467,490 3.9% 2,467,490 4.7%

Baillie Gifford & Co 1,927,401 3.0% 1,927,401 3.6%

Wasatch Advisors 1,535,015 2.4% 1,535,015 2.9%

Aviva Investors Global Services 1,289,013 2.0% 1,289,013 2.4%

Pictet Funds (Europe) 1,271,261 2.0% 1,271,261 2.4%

Capital Research and Management Company 1,125,212 1.8% 1,125,212 2.1%

Market 28,396,401 44.5% 28,396,401 53.6%

Total 63,828,492 100.0% 52,972,140 100.0%

SHAREHOLDER STRUCTURE

Updated as of August 4, 2011

1.The fully diluted column shows the effect on the Company’s shareholder structure calculated assuming that all the stock options granted under the Company’s stock option plans are exercised. It does not

include 168,696 ordinary shares granted under the 2009 - 2014 Incentive Plan

2.Excludes Federico Marchetti

3.Includes 62,000 proprietary shares

Shareholder CurrentFully Diluted 1

2

3


SLIDE 20

CONTACTS

Investor Relations

[email protected]

www.yooxgroup.com

BOLOGNA - MILANO - NEW YORK - MADRID - PARIS - TOKYO - SHANGHAI - HONG KONG

mailto:[email protected]

http://www.yooxgroup.com/

2011 first half results 4 august...

Documents