Investor & Analyst PresentationSemi-Annual Report 2015
Dr. Cornelius Patt, CEO
August 19th, 2015
Investor & Analyst Presentation H1 2015 | page 2
zooplus profitable sales growth continued in H1 2015
» Total sales increased by 34% to € 344 m
− European market leader position in online retailing sustained
− Guidance for total sales 2015 of at least € 725 m confirmed
» Acceleration of growth rate in D,A,CH
− Total sales growth in H1 2015 of 26% compared to 15% in prior year
» Further significant scaling effects and efficiency gains in cost structure
− Improvements in major cost positions
» Positive result before tax (EBT) of € 3.6 m
− Increased by € 0.3 m compared to prior year
− Guidance for EBT 2015 of € 8 - 12 m confirmed
Investor & Analyst Presentation H1 2015 | page 3
194257
336
427
571
> 725
2010 2011 2012 2013 2014 2015e
Sales growth and customer retention continue to be the main focus of zooplus strategy
Total sales 2010 – 2015e
+ 63
+ 79
+ 91
in € m
33% 31% 27% 34%Total sales growth vs. PY
+ 144
> 154
New customer sales (1st year)
Repeat customer sales
Total sales
Retention rate93%91%
85%79%
81% H134%
Investor & Analyst Presentation H1 2015 | page 4
Strong quarter on quarter net sales development
in € m
70.370.370.370.375.275.275.275.2
81.381.381.381.3
92.492.492.492.492.892.892.892.897.497.497.497.4
102.5102.5102.5102.5
114.3114.3114.3114.3120.7120.7120.7120.7 124.1124.1124.1124.1
140.0140.0140.0140.0
158.3158.3158.3158.3164.6164.6164.6164.6
168.3168.3168.3168.3
+ 43.9
+ 26.7
+ 37.5
+ 44.0
QuarterQuarterQuarterQuarter 1111 QuarterQuarterQuarterQuarter 2222 QuarterQuarterQuarterQuarter 3333 QuarterQuarterQuarterQuarter 4444
+ 27.9
2012201220122012 2013201320132013 2014201420142014 2015201520152015 2012201220122012 2013201320132013 2014201420142014 2012201220122012 2013201320132013 2014201420142014 2012201220122012 2013201320132013 2014201420142014
+ 44.2
2015201520152015
Investor & Analyst Presentation H1 2015 | page 5
94%
Customer loyalty – the winning factor of the business model – is further improving
Retention rates – Cohort analysis (Net sales incl. VAT in € m)
90 86 85 86
505
55 46 45 44
195
100
62 56 55
125
87 79
135
105
174
2011 2012 2013 2014 2015e
100%
84% 98%
63%90%
70%
Ø 79%
Ø 85%
<=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 91%
2013 a
2014 a
<= 2009to
2014 a+1
91%
+ 3 %p
2015 a
2013 a+1
2012 a+2
2011 a+3
2010 a+4
<=2009
78%
99%
99%
101%
93%
Ø 93%
Reading example: 2011 a+1= sales of 2011’s new customers in 2012
Investor & Analyst Presentation H1 2015 | page 6
Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in H1 2015
Gross Margin & Cost structure
4.5% 3.7% 3.5% 3.5%
4.8%4.0% 4.1% 4.0%
21.7%
20.2% 19.5% 19.1%
2.5%
1.7%1.5%
1.4%
2013 2014 H1 2015 Q2 2015
» Margin reduction mainly due to higher food share and exchange rate effects
» Extremely efficient marketing and new customer acquisition
» Further cost reduction in logistics
» Scaling effects in personnel
33.5%29.6%
IT/Admin/Payment (incl. depreciation & interest)
Advertising/Marketing
Logistics Personnel
in % of total sales
28.6% 28.0%
31.2% 29.7%34.5%Gross Margin29.2%
Investor & Analyst Presentation H1 2015 | page 7
Unit economics will further improve in logistics
20.2%18.1%
13.8% 14.1% 15.0%
23.9%
zoopluslogistics
all-in
zoopluslogistics
only variable
PL CZ DE ES
Logistics costs1 2014
1 Inbound & outbound logistics, line haul, distribution, packagingas a percentage of total sales
best-in-class
Investor & Analyst Presentation H1 2015 | page 8
zooplus earnings before tax (EBT) slightly above prior yearalthough sales growth stronger than expected
in € m
3.3
3.6
H1 2014 H1 2015
2.02.1
Q2 2014 Q2 2015
Earnings before tax (EBT)
+ 0.3
+ 0.1
In % total sales
1.3 % 1.1 %In % total
sales 1.6 % 1.2 %
Investor & Analyst Presentation H1 2015 | page 9
The market is still highly fragmented and competitive
Market share zooplus and competitors 2014
~ 50 % market share zooplus online
~ 2.6 % market share online and offlineCAGR: 2011-14: 30%
Net sales:
€ 0.54 bn
Total pet supplies market Europe (incl. VAT):
~ € 25 bn (~ € 21 bn net)
CAGR: 2011-14: 2 - 3%
Source: Euromonitor, company information, zooplus estimation; 1 online share of total net sales
Growth 2014: 7%
Total net sales:
~ € 1.4 bn
Online 2014: ~ € 0.04 bn(+ 3% vs. PY)
Growth 2014: 10%
Total net sales:
€ 1.0 bnOnline: € ~ 0.01 bn (< 2%)1
Net sales:
~ € 0.25 bn
Other onliners:
Investor & Analyst Presentation H1 2015 | page 10
2015e:
» Net sales > € 700 m
» Shops in 24 countries, delivery to 30 countries
Net sales / market shares (2014)
HU
Source market size: Euromonitor,market data 2013; zooplus estimation, market growth 2%p p.a., BMF; sales growth 2014 rounded to 5% steps
4.2 bn47 m 1.1%
4.5 bn193 m 4.3%
4.3 bn90 m 2.1%
1.5 bn29 m 2.0%
2.7 bn41 m 1.5%
1.5 bn67 m 4.4%
21 bn543 m 2.6%
Total market 2014 Size of total market
online and offline (net sales)
Net sales zooplus
1.1 bn31 m 2.8%
Market share zooplus
DK, SE, FI
D,A,CH PL, CZ, SK, HU, RO, SI, HR, BG, TR
1.6 bn45 m 2.8%
ES, PT
zooplus is the online market leader in all geographies of Europe – with the widest possible base for further growth
NL, BE, LU
H1 2014: +15%
H1 2015: +26%
Investor & Analyst Presentation H1 2015 | page 11
Logistics capacity will be doubled in the next three years, product quality and efficiency will further improve
2013
Q1/2015
Fulfillment center (FC) Potential FC under investigation
2009
» FC in Chalon-sur-Saône started in Q1/2015
» Capacity increase in other existing fulfillment centers
» Overall capacity increase by 40% since beginning of 2015
» All FCs operated by partners; no capex for zooplus
2000/2011
Q1/2015
Investor & Analyst Presentation H1 2015 | page 12
zooplus shareholder structure is very much focused on growth and mid-term value creation
August 2015April 2014
Burda 50.04%
Capital Research
7.99%
The Nomad Investment Partnership 7.98%
Ruane, Cunniff & Goldfarb 5.90%
Wasatch Advisors5.39%
Management 4.00%
Others 18.70%Burda 18.86%
Capital Research 12.68%
Ruane, Cunniff& Goldfarb
10.01%
Management 5.34%
Others 35.21%
Maxburg Beteili-gungen GmbH & Co. KG 13.67%
Deutsche Asset & Wealth 4.23%
Source: information from notification of voting rights and company information; data as of August 15th, 2015
Investor & Analyst Presentation H1 2015 | page 13
Liquidity in the zooplus stock has strongly increased
Ø per day€ 417 k
2014 2015 Daily tradingvolume in € k
Source: Deutsche Börse (xetra), data until July 31st, 2015
Ø per day€ 1,412 k
Burda < 50% share in zooplus
zooplus capitalincrease
500
1,000
1,500
2,000
Investor & Analyst Presentation H1 2015 | page 14
In summarizing : zooplus – a sustainable growth story
Attractive market with further growth potential (market volume ~ € 25 bn)
Market leader in e-commerce, closing up on the biggest offliners
Integrated logistics-structure for pan-European sourcing and fulfillment
Growth driven by a large and growing loyal customer base
Cost leadership – online and across all channels
Experienced management team with a share in the company and with a clear and focused strategy
1.
2.
3.
4.
5.
6.
Well prepared for future value creation
Investor & Analyst Presentation H1 2015 | page 15
Semi-Annual Report 2015
Thank you for your attention.
Investor & Analyst Presentation H1 2015 | page 16
Back-up: Key Financials
Investor & Analyst Presentation H1 2015 | page 17
Key Financials Q2 2015
P&Lin € m
Q2 2015 Q2 2014 ∆∆∆∆ abs ∆∆∆∆%p
Total sales 174.3 130.7
∆ abs. 43.6
∆ in % 33.4%
COGS123.4
70.8%89.7
68.6%33.7
2.2%p
Logistics33.3
19.1%26.3
20.1%7.0
-1.0%p
Payment1.9
1.1%1.5
1.2%0.4
-0.1%p
Customer acquisition2.4
1.4%2.1
1.6%0.3
-0.2%p
Personnel6.2
3.5%5.1
3.9%1.1
-0.4%p
G&A4.8
2.7%3.7
2.8%1.1
-0.1%p
EBITDA2.3
1.3%2.3
1.8%0.0
-0.5%p
I&DA0.3
0.1%0.3
0.2%0.0
-0.1%p
EBT2.1
1.2%2.0
1.6%0.1
-0.4%p
Investor & Analyst Presentation H1 2015 | page 18
Profit & Loss H1 2015
in € mH1 2015 H1 2014
abs % abs %
Sales 333.0 96.8% 244.8 95.3%
Other income 11.1 3.2% 12.2 4.7%
Total sales 344.1 100.0% 257.0 100.0%
Cost of materials -241.9 -70.3% -175.2 -68.2%
Personnel costs -12.0 -3.5% -10.5 -4.1%
Depreciation -0.4 -0.1% -0.3 -0.1%
Other expenses -86.1 -25.0% -67.5 -26.3%
thereof logistics / fulfillment (-67.0) -19.5% (-52.7) -20.5%
thereof marketing (-5.3) -1.5% (-4.4) -1.7%
thereof payment (-3.8) -1.1% (-3.3) -1.3%
thereof other costs (-10.0) -2.9% (-7.1) -2.7%
Earnings before interest and taxes (EBIT) 3.7 1.1% 3.5 1.4%
Financial income 0.0 0.0% 0.0 0.0%
Financial expenses -0.1 0.0% -0.2 -0.1%
Earnings before taxes (EBT) 3.6 1.1% 3.3 1.3%
Taxes on income -1.6 -0.5% -1.3 -0.5%
Consolidated net result 2.1 0.6% 2.0 0.8%
Differences from currency translation 0.1 0.0% 0.0 0.0%
Hedge reserve -1.0 -0.3% 0.0 0.0%
Items that may be relclassified subsequently to profit or loss -0.9 -0.3% 0.0 0.0%
Comprehensive income 1.2 0.3% 2.0 0.8%
Earnings per share in €
basic 0.30 - 0.32 -
diluted 0.29 - 0.31 -
Investor & Analyst Presentation H1 2015 | page 19
Balance Sheet as of June 30th, 2015
Assets Equity and Liabilities
in € m June 30th, 2015 Dec. 31st, 2014 ∆∆∆∆ abs
A. Non-current assets
I. PP&E 1.1 0.8 0.3
II. Intangible assets 9.2 8.6 0.6
III. Other financial assets 0.0 0.0 0.0
IV. Deferred tax assets 3.5 4.2 -0.7
Total non-current assets 13.9 13.6 0.3
B. Current assets
I. Inventories 64.7 65.0 -0.3
II. Advance payments 4.1 0.5 3.5
III. Accounts receivable 14.8 12.1 2.8
IV. Other current assets 6.2 13.1 -6.9
V.Derivative financialinstruments
1.7 2.3 -0.6
VI. Cash and cash equivalents 37.8 32.0 5.8
Total current assets 129.3 125.0 4.3
143.2 138.6 4.6
in € m June 30th, 2015 Dec. 31st, 2014 ∆∆∆∆ abs
A. Equity
I. Capital subscribed 7.0 7.0 0.0
II. Capital reserves 92.4 92.0 0.4
III. Other reserves 0.8 1.7 -0.9
IV. Profit and Loss carried forward -12.4 -14.5 2.1
Total equity 87.8 86.2 1.6
B. Non-current liabilities 1.4 1.2 0.2
C. Current liabilities
I. Accounts payable 19.0 23.4 -4.4
II.Derivative financialinstruments
0.9 0.0 0.9
III. Other current liabilities 26.7 20.1 6.6
IV. Tax liabilites 0.9 2.0 -1.1
V. Provisions 4.7 4.1 0.6
VI. Deferred income 1.8 1.5 0.3
Total current liabilities 54.0 51.1 2.9
143.2 138.6 4.6
Investor & Analyst Presentation H1 2015 | page 20
Cash Flow H1 2015
EBT 3.6 3.3
Cash flow from operating activities 7.2 3.2
Cash flow from investing activities -1.4 -2.2
Cash flow from financing activities 0.0 4.4
Net change of cash and cash equivalents 5.8 5.4
Cash on hand, bank deposits, cheques 37.8 11.1
in € m H1 2015 H1 2014
Investor & Analyst Presentation H1 2015 | page 21
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