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KINNEVIK ROCKET CAPITAL MARKETS DAY BERLIN, MAY 22 2014
The informa,on contained in this presenta,on is public informa,on only, but it does not necessarily represent all informa,on related to the issues discussed or presented herein, or all views of the company. The informa,on has been researched by the company with due care and all and any evalua,ons or assessments stated herein represent the company’s opinions. We advise you that some of the available informa,on has been independently verified and may be based on statements by third persons, but no representa,on or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this informa,on or opinions contained herein. Certain statements contained herein may be statements of future expecta,ons and other forward-‐looking statements that are based on our current personal views and assump,ons and involve known and unknown risks and uncertain,es that may cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of our team shall assume any liability whatsoever (in negligence or otherwise) for any loss or unrealized profit whatsoever arising from any use of this presenta,on or the statements contained herein as regards unverified third person statements, any statements of future expecta,ons and other forward-‐looking statements, or the fairness, accuracy, completeness or correctness of statements contained in the presenta,on, or otherwise made in connec,on with this presenta,on. This presenta,on does not cons,tute an offer or invita,on to purchase or subscribe for any investment and neither this presenta,on nor any part of it shall form the basis of or be relied upon in connec,on with the entering into any commitment or contract whatsoever, and is solely intended to communicate informa,on regarding the company, its business track-‐records and team members. No one should base their investment decisions on this presenta,on but should form their personal opinions on the basis of further available informa,on and evalua,ons and assump,ons. In addi,on, any prospec,ve investor should consult its own aHorney and business advisor as to the legal, business, and tax and related maHers concerning any investment decision.
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LINIO – THE B2C MARKET PLACE FOR SPANISH LATAM
Targeting the crown jewel of ecommerce
• Targeting the general ecommerce space in Spanish speaking Latam with a B2C market place and retail business model
• Currently 225m addressable customers across 4 fast growing economies - now expanding to another 9 countries and ~100 million people
Clear market leadership in all launched countries
• Founded in 2012 and already market leader in in Mexico, Colombia, Peru and Venezuela
• Offers more than 300,000 products across 60 categories
Positioned to win
• Unparalleled product mix diversification and company positioning
• Lean set-up with HQ and shared services in Mexico, Independently operating country offices in Bogota, Lima, Caracas and Santiago
• COD offering in all markets, extensive in-house and 3PL logistic set-up that covers 99%+ of population even for oversized items
Quick highlights – Linio:
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To be the biggest and most trusted market place - online as well as offline - for companies to sell and customer buy
products in Latin America
OUR VISION
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Targeting the crown jewel of ecommerce
HUGE FAST-GROWING RETAIL MARKET
ANNUAL RETAIL GROWTH:
ANNUAL ONLINE RETAIL GROWTH:
6% 29%
RETAIL MARKET SIZE 480EUR BN
6 Source: Goldman Sachs IBC
LINIO IS ADDRESSING THE LARGEST UNTAPPED ECOMMERCE OPPORTUNITY IN THE WORLD
GDP (USD TN.)
16.2 8.3 5.9
3.4
3.2
DOMINATING B2C
Source: United Nations, 2012 7
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E-COMMERCE IS POISED TO BE A REAL GAME-CHANGER IN LATAM
36% of the Colombian population lives in a city with 1 leading department store
90% of the US population lives 15 minutes away from a Walmart
Distribution of main department stores and leading electronics offline chain
Internet Penetration by Country % over total population
Online retail market size Million USD
GDP per capita USD
Online retail market penetration % over total retail market
26% 30% 31% 33%
51% 60%
42%
51%
0%
15%
30%
45%
60%
75%
Mexico Colombia Peru Venezuela
0.4% 0.3% 0.3%
0.6%
2.3%
0.9%
0.5% 0.9%
0.0%
0.8%
1.5%
2.3%
3.0%
Mexico Colombia Peru Venezuela
8085
5149 4362
5690
11224
7831 6797
6128
-‐
3,000
6,000
9,000
12,000
Mexico Colombia Peru Venezuela
670
139 66 82
5096
700
168 97 -‐
750
1,500
2,250
3,000
Mexico Colombia Peru Venezuela
2009 2013
THE FUNDAMENTALS FOR E-COMMERCE ARE GROWING RAPIDLY
9 Source: IMF, World Bank, Goldman Sachs
Clear market leader in all markets
EXPLOSIVE SALES GROWTH
Q3 ´12 Q4 ´12 Q1 ´13 Q2 ´13 Q3 ´13 Q4 ´13
206K NET ORDERS
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DRIVEN BY CONTINOUSLY GROWING CUSTOMER BASE
-‐
400
800
1,200
1,600
Dec-‐12 Feb-‐13 Apr-‐13 Jun-‐13 Aug-‐13 Oct-‐13 Dec-‐13 -‐
100
200
300
400
Dec-‐12 Feb-‐13 Apr-‐13 Jun-‐13 Aug-‐13 Oct-‐13 Dec-‐13
Active email subscribers since December 2012 ´000 email subscribers
Unique customers since December 2012 ´000 customers
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1 Based on similarweb.com
LINIO HAS A CLEAR TRAFFIC MARKET SHARE LEADERSHIP IN THE 4 MARKETS WHERE WE CURRENTLY OPERATE
Pure e-‐commerce players
Visits (in Mn), March 2014 1 Mkt share 1
0" 2" 4" 6" 8"
Linio"
Netshoes"
Amazon"
Decompras"
Dportenis"
Coordiutil"
Others"
54%"
25%"
2%"
2%"
Pure e-‐commerce + Offline Retailers
Visits (in Mn), March 2014 1 Mkt share 1
0" 2" 4" 6" 8" 10"
Linio"
Netshoes"
Walmart"
Falabella"
Liverpool"
Éxito"
Coppel"
Others"
1%"
0%"
16%"
23%"
9%"
9%"
7%"
5%"
5%"
31%"(7 Peers) (30 Peers)
11%"
13
0%"
5%"
10%"
15%"
20%"
25%"
Q2'12" Q4'12" Q2'13" Q4'13"
Mobile visit ratio of total visits Percentage of total site visits
LINIO IS QUICKLY BECOMING A MOBILE SHOPPING PLATFORM
Android APP
Mobile theme
IOS APP
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LINIO IS A TRUE MULTI-CATEGORY SITE
SHIPPED ITEMS BY CATEGORY DECEMBER 2013
More than 60 categories 140k items shipped in one month 15
From <5% of sales in December to ~25% of sales in May
Monthly growth rate of 84% (1)
Vendor base of 1000+, growing at 62% monthly
Average achieved commission north of
12% (1) Average growth rate from June 2013 to April 2014
MARKETPLACE IS GROWING INCREDIBLY FAST WITH HEALTHY MARGINS
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Positioned to win
• Consulting • Private Equity • MBA • Norwegian national
CEO Andreas Mjelde
NAME TITLE PREVIOUS EXPERIENCE
• Consulting • Consumer goods • MBA • Italian national
• CFO and FPA roles across Europe • MSc • French national
Luca Ranaldi
Olivier Sieuzac
Chief Commercial Officer MD Linio Colombia
Head of Finance
Antonio Nunes Chief Marketing Officer • Consulting • Business Development • MSc • Portuguese national
Cristian Cortes Chief Operating Officer • Consulting • Logistics operations • MBA • Mexican national
Fernando D’Allesio Head of Business Development MD Linio Peru
• Corporate finance • Business Development • MBA • Peruvian national
COMPLETE REGIONAL MANAGEMENT STRUCTURE LEADS TO BENEFITS OF SCALE AND FUNCTIONAL EXPERTISE
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STRONG AND DIVERSIFIED INVESTOR PORTFOLIO
Backing from highly successful sector specialists and investors:
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Only e-commerce platform with broad Cash On Delivery offering
SCALABLE SOLUTIONS IN PLACE TO OVERCOME THE OPERATIONAL CHALLENGES IN THE REGION
Independently operating 4 large scale warehouses to ensure fast and cost efficient operations
Full integration with major logistics carriers in each country and last-mile own fleet, enabling superior service level and tracking capabilities
Fully in-sourced 24/7 customer service to offer un-paralleled customer experience
Internally developed anti-fraud team with best-in-class performance
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LINIO WILL IN THE NEXT 6-12 MONTHS CONTINUE TO INNOVATE THE B2C MODEL IN LATAM
Geographic expansion to 9 new countries to cover a total of > 320 million people Continued expansion of market place offering Express shipping nationwide and innovative same-day delivery in capitals Linio Mas (more) - subscription model for free shipping and exclusive offerings Express shipping and Linio Mas also for market place products
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Marketplace
Fulfilment
B2C
Operating Model Similar players Date Launched Benefits
▪ Control supply chain ▪ Build strong customer reputation and trust
June 2012
June 2013
Winter 2014
▪ Expand assortment ▪ Improve economics and reduce working capital needs
▪ Offer marketplace / C2C merchants and 3rd parties world class ecommerce logistic service ▪ Further drive operational efficiency
Payment 2015 ▪ Offer customers with trustworthy and reliable payment
options ▪ Lower costs for sellers
Groceries Summer 2015 ▪ Partner with one large grocery retailer in each market to
start offering same-day and express grocery deliveries
SEVERAL ADDITIONAL ATTRACTIVE BUSINESS MODELS TO BUILD OUT FROM CURRENT CORE
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