investor & analyst presentation...semi-annual report 2014 dr. cornelius patt, ceo andreas...

Investor & Analyst PresentationSemi-Annual Report 2014

Dr. Cornelius Patt, CEO

Andreas Grandinger, CFO

August 19th, 2014

Investor & Analyst Presentation 20140819 | 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


H1 2014: Continuation of focused growth strategy

» Total sales increased by 29% to € 257 m

− European market leader position in online retailing sustained

− Guidance for total sales 2014 increased from € 500 m to at least € 530 m

» Price-competitive market environment

− First small competitors are struggling

» Further significant scaling effects and efficiency gains in cost structure

− Improvements in all cost positions

» Positive result before tax (EBT) of € 3.3 m

− Increased by € 3.8 m compared to prior year

− Guidance for 2014 of around EUR 6 m confirmed


Total sales growth continues to be main focus of zooplus strategy

Total sales 2008 – 2014(e)

» Double-digit growth in all major markets

» Successful development of second brand bitiba

» Growth both in repeat and new customer business

» International sales share: 69% (PY 63%)

in €m

85129

194

257

336

427

530 +

2008 2009 2010 2011 2012 2013 2014 (e)

+ 63

+ 79

+ 91

+ 65

+ 44

+ 103


Strong quarter on quarter net sales development

56.3 56.064.1

68.470.375.2

81.3

92.492.897.4

102.5

114.3120.7

124.1

+ 22.5

+ 27.9

+ 22.2+ 21.2

+ 21.9

2011 2012 2013 2014 2011 2012 2013 2011 2012 2013 2011 2012 2013

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

+ 26.7

in €m

2014


Q2 sales growth almost on growth level of Q1 sales

Total sales H1

199

+ 58

257

H1 2013 H1 2014

Total sales Q2

+ 29 % + 28 %

in €m

102

+29

131

Q2 2013 Q2 2014


zooplus with positive earnings before tax (EBT) in H1 2014

in €m

-0.5

3.3

H1 2013 H1 2014

0.2

2.0

Q2 2013 Q2 2014

Earnings before tax (EBT)

+ 3.8

+ 1.8


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

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

105 99 99

418

64 53 52

182

114

7265

145

102

157

2011 2012 2013 2014e

» New all-time high of total retention rate for 2014 expected

» Dog and cat food customers with highest loyalty

» Increase in new customer sales

94% 100%

84% 98%

63% 90%

70%

Ø 79%

Ø 85%

+ 6 %p

<=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 88%

2013 a

2014 a

<= 2009to

2013 a+1

88%

+ 3 %p


Further efficiency gains and scaling effects lead to a total cost ratio of less than 30% in Q2 2014

Gross Margin & Cost structure

4.5% 4.5% 4.1% 3.9%

5.0% 4.8% 4.3% 4.2%

22.9% 21.7%20.5% 20.1%

4.6%

2.5%

1.7% 1.6%

2012 2013 H1 2014 Q2 2014

» Very efficient marketing and new customer acquisition

» Further cost reduction in logistics

» Scaling effects in IT/Admin and personnel

36.9%33.5%

IT/Admin (incl. depreciation & interest)

Advertising/Marketing

Logistics Personnel

- 3.4 %p

In % of total sales,

30.6% 29.8%

- 2.9 %p

34.5% 31.8%36.2%Gross Margin31.4%


However, competition is intense and zooplus is prepared to keep competitors at a distance

DE, FR, UK

Massive resources Highest stakes at risk

Greatest number / “irrational behavior”


Therefore, sales growth and retention rate are key to further strengthening of market position

1.576

1.671

1.836

500

85 %

530

85 %

530

88 %

Total sales

Retention

“Locked-in” total sales over 5-year period

+ 95

+ 260

in €m

» 3-4 times of current customers’ sales already “locked in” for next 5 consecutive years

» Reduced cost of acquisition and increased new customer sales show that there is no threat of saturation

» Sales growth translates into higher sales and better profitability in following years


The benefits of strong sales growth translate into future profitability

» Every doubling of sales significantly improves the total cost ratio

» Positive impact on margin by better purchasing power and private label improvement

» zooplus growth means less growth for competitors with negative impact on their operating leverage

» Growth helps to consolidate the market and improve clear market leadership position of zooplus in online business

» zooplus can close the gap towards the market leaders in Europe (both online and offline together)

» Higher sales volume on a given rate of return leads to higher result in absolute terms. Sales growth not limited for next 10 years

» Sales growth leads to better earnings perspective in following years for zooplus compared to companies that see no or very small growth

Operating leverage

Strategic leverage

Financial leverage


Local office

Fulfilment center

zooplus headquarter

» Deeper exploration of existing countries

» International rollout second brand bitiba

» Prepare next step in international logistics structure

» Further improve cost structure HU

Potential locations (FC) under investigation

Main focus for 2014 is sales growth by a deeper exploration of existing zooplus markets in Europe


In summarizing : zooplus – a sustainable growth story

Attractive market with further growth potential (market volume ~ € 25 bn)

Market leader in e-commerce, closing up to 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 clear and focused strategy

1.

2.

3.

4.

5.

6.

Well prepared for future value creation


Current guidance for 2014

EBITDA: around € 8 m

EBT: around € 6 m

Equity ratio: between 30 % - 40 %

Total sales: at least € 530 m


The zooplus share

Jan. 2nd, 2013: € 33.80

Aug. 15th, 2014: € 47,00

Market capitalization: ~ € 300 m

+ 39 %

Financial calendar 2014

October 21, 2014 Preliminary sales figures Q3/2014

November 18, 2014 Report Q3/2014

November 24-26, 2014 German Equity Forum 2014

Shareholder Structure

2 Others (incl. Management)

3 Ruane, Cunniff & Goldfarb Inc.

4 Capital Research

5 Wasatch Advisors

6 Deutsche Asset & Wealth Management Investment

1 BURDA | held by: Burda Digital Ventures GmbHBDV Beteiligungen GmbH & Co. KG Burda GmbH

4.99 %4.23 %

7.99 %

48.79 %

10.01 %

1111

2222

3333

66665555

4444

23.99 %


Semi-Annual report 2014

Thank you for your attention!


Backup: Key Financials Q2 2014

» Total sales up 28%, adding € 28.9 m on prior year period

» Significantly increased efficiency in logistics (-1.8%p), customer acquisition (-1.1%p), personnel (-0.6%p) and G&A (-0.5%p)

» Total cost ratio of 29.8% (previous year 34.1%)

P&Lin € m

Q2 2014 Q2 2013 ∆∆∆∆ abs ∆∆∆∆%

Total sales 130.7 101.8

abs. 28.9

∆ in % 28.4%

COGS89.7

68.6%66.8

65.6%22.9

3.0%p

Logistics26.3

20.1%22.3

21.9%4.0

-1.8%p

Payment1.5

1.2%1.4

1.4%0.1

-0.2%p

Customer acquisition2.1

1.6%2.8

2.7%-0.7

-1.1%p

Personnel5.1

3.9%4.6

4.5%0.5

-0.6%p

G&A3.7

2.8%3.4

3.3%0.4

-0.5%p

EBITDA2.3

1.8%0.5

0.6%1.8

1.2%p

I&DA0.3

0.2%0.3

0.3%0.0

-0.1%p

EBT2.0

1.6%0.2

0.3%1.8

1.3%p


Profit & Loss H1 2014

in € mH1 2014 H1 2013

abs % abs %

Sales 244.8 95.3% 190.2 95.7%

Other income 12.2 4.7% 8.6 4.3%

Total sales 257.0 100.0% 198.8 100.0%

Cost of materials -175.2 -68.2% -129.9 -65.3%

Personnel costs -10.5 -4.1% -9.2 -4.6%

Depreciation -0.3 -0.1% -0.4 -0.2%

Other expenses -67.5 -26.3% -59.8 -30.1%

thereof logistics / fulfillment (-52.7) -20.5% (-44.4) -22.3%

thereof marketing (-4.4) -1.7% (-6.0) -3.0%

thereof payment (-3.3) -1.3% (-2.9) -1.4%

thereof other costs (-7.1) -2.8% (-6.6) -3,4%

Earnings before interest and taxes (EBIT) 3.5 1.4% -0.4 -0.2%

Financial income 0.0 0.0% 0.0 0.0%

Financial expenses -0.2 -0.1% -0.2 -0.1%

Earnings before taxes (EBT) 3.3 1.3% -0.5 -0.3%

Taxes on income -1.3 -0.5% -0.1 -0.1%

Consolidated net result 2.0 0.8% -0.6 -0.3%

Differences from currency translation 0.0 0.0% 0.0 0.0%

Hedge reserve 0.0 0.0% 0.2 0.1%

Items that may be relclassified subsequently to profit or loss 0.0 0.0% 0.3 0.2%

Comprehensive income 2.0 0.8% -0.4 -0.2%

Earnings per share

basic 0.32 - -0.11 -

diluted 0.31 - -0.11 -


Balance Sheet as of June 30th, 2014

Assets Equity and Liabilities

in € m Jun. 30th, 2014 Dec. 31st, 2013 ∆∆∆∆ abs

A. Non-current assets

I. PP&E 0.6 0.5 0.1

II. Intangible assets 6.9 4.9 2.0

III. Financial assets 0.0 0.0 0.0

IV. Deferred tax assets 6.2 6.9 -0.7

Total non-current assets 13.8 12.5

B. Current assets

I. Inventories 47.9 43.7 4.2

II. Advance payments 4.0 0.3 3.7

III. Trade receivables 12.9 10.8 2.1

IV. Other current assets 8.3 10.9 -2.6

V. Derivative financial instruments 0.0 0.0 0.0

VI. Cash and cash equivalents 11.1 5.6 5.5

Total current assets 84.2 71.3

97.9 83.7 14.2

in € m Jun. 30th, 2014 Dec. 31st, 2013 ∆∆∆∆ abs

A. Equity

I. Capital subscribed 6.4 6.1 0.3

II. Capital reserves 55.1 50.3 4.8

III. Other reserves 0.1 0.0 0.1

IV. Profit and Loss carried forward -17.7 -19.7 2.0

Total equity 43.9 36.7

B. Non-current liabilities 0.8 0.5

C. Current liabilities

I. Trade payables 18.7 16.2 2.5

II. Financial liabilities 13.0 13.0 0.0

III. Derivative financial instruments 0.0 0.1 -0.1

IV. Other current liabilities 15.9 12.7 3.2

V. Tax liabilites 1.3 0.8 0.5

VI. Provisions 3.4 2.7 0.7

VII. Deferred income 1.1 1.0 0.1

Total current liabilities 53.3 46.5

97.9 83.7 14.4


Cash Flow H1 2014

EBT 3.3 -0.5

Cash flow from operating activities 3.2 -6.3

Cash flow from investing activities -2.2 -2.6

Cash flow from financing activities 4.4 10.8

Net change of cash and cash equivalents 5.4 1.9

Cash on hand, bank deposits, cheques 11.1 4.9

in € m H1 2014 H1 2013

investor & analyst presentation...semi-annual report 2014 dr. cornelius patt, ceo andreas...

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