#1 FASHION & LIFESTYLE DESTINATION IN GROWTH MARKETS - March 2021 - Global Fashion Group
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#1 FASHION &
LIFESTYLE
DESTINATION IN
GROWTH MARKETS
March 2021
OUR VISION IS TO BE THE #1 FASHION AND LIFESTYLE DESTINATION IN OUR MARKETS OUR PURPOSE IS TO ENABLE TRUE SELF-EXPRESSION 2 COMPANY PRESENTATION: MARCH 2021
GFG SNAPSHOT – STRONG GROWTH SINCE 2011
GLOBAL STRONG GROWTH CONSISTENT NMV GROWTH WITH
• 4 Regions: ANZ, CIS, LATAM, SEA • 16.3m active customers, CAGR (17-20) of FINANCIAL PROFILE IMPROVING
• 17 countries
+18% MATERIALLY
• 2.6x order frequency, CAGR (17-20) +2.6% NMV (€M)
• 82% of top 50 Global Fashion and Lifestyle +26%
brands1 • Average order value of c.€471 +22% +23%
+20%
• Over 2.5m SKUs1
1,958
1,453
1,343
1,778
DIFFERENTIATED BUSINESS MODEL WELL-INVESTED INFRASTRUCTURE 2017 2018 2019 2020
• Retail 69% of NMV1 • 2.6bn visits in 2020 EBITDA MARGIN (%) 1.2%
• Marketplace 31% of NMV1 • Shared global cloud only tech platform -2.8%
-4.3%
• Increasing penetration of Platform Services • 9 regional fulfilment centres1 -8.9%
• People and planet positive • 40+ payment options1
2017 2018 2019 2020
Source: Company information.
(1) Data for 2020.
3 COMPANY PRESENTATION: MARCH 2021
OUR OPPORTUNITY 4 COMPANY PRESENTATION: MARCH 2021
OUR AMBITION: BUILDING A €10BN NMV BUSINESS
LARGE AND GROWING KEY GROWTH
7-9 YRS: ~€10BN NMV
MARKET LEVERS
• Growing c.€300bn TAM of Fashion • Grow active Customers • The #1 fashion and lifestyle
and Lifestyle destination for customers
• Grow order frequency
• Additional c.€130bn TAM in • The #1 fashion and lifestyle partner
opportunistic categories (e.g., toys, • Increase focus on adjacent (e.g. for leading brands
home furnishing) beauty) and opportunistic categories
• The #1 in the fashion and lifestyle
• Accelerating online penetration market
5 COMPANY PRESENTATION: MARCH 2021
ONE BILLION PEOPLE IN A GROWING ~€300BN FASHION AND
LIFESTYLE MARKET
LATAM CIS SEA ANZ
Countries 4 4 7 2
Active customer (% pop.) 2.3% 1.7% 0.7% 5.3%
Smartphone Penetration 85%+ 120%+ 95%+ 100%+
FASHION & LIFESTYLE
MARKET €90bn (+14%) €70bn (+5%) €100bn (+10%) €30bn (+6%)
(CAGR 2020-2024%)
Source: GFG calculations based on data from WCIS; Euromonitor International Ltd: Apparel and Footwear 2021 edition, Beauty and Personal Care 2020 edition, Personal Accessories and Eyewear 2021 edition. Fashion and lifestyle
market size refers to the aggregation of Apparel and Footwear, Beauty and Personal Care, and Personal Accessories and Eyewear. Retail value RSP incl. Sales Tax, Fixed 2020 ex rates, Current Prices. Smartphone penetration calculated
as smartphone devices divided by population.
6 COMPANY PRESENTATION: MARCH 2021
COVID-19 ACCELERATED ONLINE ADOPTION ACROSS OUR
MARKETS, WHICH RETAIN ATTRACTIVE LONG-TERM POTENTIAL
FASHION AND LIFESTYLE ONLINE PENETRATION – GFG VS OTHER MAJOR MARKETS
Long term
online
2019 2020 penetration:
• ANZ 16% • ANZ 23% ~50%
• CIS 10% • CIS 16%
Late
• SEA 7% • SEA 11%
Stage
• LATAM 4% • LATAM 9%
31% 30%
Accel-
23% 21% 22%
eration
16%
13%
7%
Early
Days
US Europe China GFG US Europe China GFG
Source: GFG calculations based on data from Euromonitor International Ltd: Apparel and Footwear 2021 edition, Beauty and Personal Care 2020 edition, Personal Accessories and Eyewear 2021 edition. Fashion and lifestyle market size
refers to the aggregation of Apparel and Footwear, Beauty and Personal Care, and Personal Accessories and Eyewear. Retail value RSP incl. Sales Tax, Fixed 2020 ex rates, Current Prices.
7 COMPANY PRESENTATION: MARCH 2021
WE ARE ONLY AT THE BEGINNING OF REACHING OUR MARKET
POTENTIAL
ACTIVE CUSTOMERS AS % OF ADDRESSABLE POPULATION ORDERS PER ACTIVE CUSTOMER
>5x 8.4%
~85% 4.8
potential higher
2.6
1.6%
GFG (2020) Zalando (3Q20) GFG (2020) Zalando (3Q20)
WE HAVE A LARGE AND GROWING CUSTOMER BASE ONLINE ADOPTION LEADS TO CONSISTENT INCREASE
TO DRIVE ONLINE ADOPTION IN ORDER FREQUENCY
Source: GFG calculations based on data from Euromonitor International Ltd and Zalando.
8 COMPANY PRESENTATION: MARCH 2021
HOW WE WIN 9 COMPANY PRESENTATION: MARCH 2021
HOW WE WIN
TRUE LOCAL EXPERT
BEST-IN-CLASS CUSTOMER EXPERIENCE PARTNER OF CHOICE FOR BRANDS
OPERATIONS & PLATFORM POWERED BY ART & SCIENCE
PEOPLE AND PLANET POSITIVE
10 COMPANY PRESENTATION: MARCH 2021WE CREATE AN INSPIRING AND SEAMLESS SHOPPING EXPERIENCE
FOR OUR CUSTOMERS – FROM DISCOVERY TO DELIVERY
HIGHLY VALUABLE
ASSORTMENT DIGITAL EXPERIENCE FULFILMENT
CUSTOMER ASSET
• Broad • Seamless • Fast • Top of mind
• Relevant • Personalised • Efficient
• Huge traffic
• Increasingly sustainable • Sticky • Convenient
• Stable CAC
• Growing loyalty
• Growing spend per
customer
• Core base of highly
valuable customers
DISCOVERY DELIVERY
11 COMPANY PRESENTATION: MARCH 2021WE TARGET A FASHION FORWARD CUSTOMER
OUR CUSTOMERS
• Predominantly female (65%+
of active customers)
• Young with vast majority
MODEST WELLNESS
CINDERELLA between 18-45yrs old
MODERNISTA WARRIOR
TREND URBAN STYLE • Urban/affluent
FOLLOWER LIFESTYLER ICON
• Style icons to savvy
professionals
• Looking for inspiration, latest
trends and highly engaged
• Buys c.4 brands p.a. from
GFG
12 COMPANY PRESENTATION: MARCH 2021WE OFFER 82% OF THE TOP 50 GLOBAL FASHION BRANDS
Luxury
GFG
Contemporary Assortment
INSPIRATION +
BRAND BUILDING Premium
We work with
Lifestyle
41
of the top 50
AFFORDABILITY, Mainstream global brands
VOLUME, SCALE
Fast Fashion
Unbranded
Note: Based on a selection of GFG brands, list not comprehensive.
13 COMPANY PRESENTATION: MARCH 2021WE OFFER A BROAD, RELEVANT & UNPARALLELED ASSORTMENT
PRICE RANGE OF SKU’S ROLLOUT OF ADJACENT CATEGORIES ACCELERATED IN 2020, PRODUCING A STRONG
% OF 2020 SKU’S HALO EFFECT
2020 NMV SHARE
ACCESSORIES (12%)
30%
80-500k
SPORT (20%)
>€50
SKUs in major
markets
(up 9%)
70%
>€20
APPAREL (38%) FOOTWEAR (20%) KIDS, BEAUTY & OTHER (11%)
EXISTING CATEGORIES – ADJACENT & OPPORTUNISTIC CATEGORIES –
MOSTLY COVID LOSERS MOSTLY COVID WINNERS
Note: Category splits based on FY2020 NMV share, excluding VAT/GST and delivery fees.
14 COMPANY PRESENTATION: MARCH 2021APP CREATES A TRULY PERSONALISED EXPERIENCE FOR OUR
CUSTOMERS
CONSISTENT INNOVATION WITH STRONG CAPABILITIES NEARLY 60% OF SALES ARE NOW FROM APP
51%
visits from App
NMV FROM APP (€M), SHARE OF NMV FROM APP (%)
42% 50% 59%
STORIES 1,150
VISUAL SEARCH +47%
895
VIRTUAL TRY ON
+45%
604
FOLLOW THE BRAND
WISHLIST
2018 2019 2020
Note: Growth rates are shown on a constant currency basis and therefore exclude the effect of foreign currency movements.
15 COMPANY PRESENTATION: MARCH 2021OUR NINE LOCAL FASHION-CENTRIC FULFILMENT CENTRES
ENABLE FAST DELIVERIES
3 AUTOMATED FULFILMENT CENTRES IN OUR LARGEST MARKETS 6 NON-AUTOMATED FULFILMENT CENTRES
SEA
36m+
CIS LATAM total item storage
capacity
€4bn+
NMV capacity of
Malaysia current footprint
Indonesia
Brazil Philippines
LATAM
80m+
ANZ items shipped in
2020
Second FC 6 of 9
adding 10m item centres new /
storage capacity Colombia expanded in 2020
to go live 2022 Chile
Russia Russia Australia Argentina
16 COMPANY PRESENTATION: MARCH 2021WE HAVE ESTABLISHED A LEADING AND HIGHLY DIFFERENTIATED
ONLINE FASHION OFFERING
SHARE OF ONLINE FASHION AND LIFESTYLE IN GFG MARKETS BRAND.COM – COMPLEMENTARY AND PARTNERSHIP
(2020)
€25bn • Our multi-brand assortment offers inspiration and choice
• Our markets are non-core for many international brands
10 0 %
• Our scale and expertise drive cost advantage
~8%
of total market
GENERAL MERCHANDISE – DIFFERENT PROPOSITION
EXAMPLES: EXAMPLES: EXAMPLES: EXAMPLES:
• Our curated, current and authentic assortment is differentiated
• Our content and personalisation inspire
8 0
%
• Our premium brands are aspirational and extend price range
Fashion & Brand.com General Department
Lifestyle Merchandise Stores (online)
Pureplay
Source: GFG calculations based on data from Euromonitor International Ltd: Apparel and Footwear 2021 edition, Beauty and Personal Care 2020 edition, Personal Accessories and Eyewear 2021 edition. Fashion and lifestyle market size
refers to the aggregation of Apparel and Footwear, Beauty and Personal Care, and Personal Accessories and Eyewear. Retail value RSP incl. Sales Tax, Fixed 2020 ex rates, Current Prices.
17 COMPANY PRESENTATION: MARCH 2021OUR MARKETS ARE MORE COMPLEX THAN DEVELOPED MARKETS
INFRASTRUCTURE TERRAIN REGULATION RETAIL SPACE
• Underdeveloped • Population located • Complex import • Lack of retail space vs
infrastructure and across vast and remote processes, regulatory developed markets
ecommerce solution areas and tax environments • US has 5x more retail
providers space3 than our
combined footprint
~50 >1/3 ~80% 7%
Retail space per
Average logistics of global of GFG items
capita3 in GFG
performance index land mass supplied locally
countries vs US
ranking1 (out of 1602)
Source: GFG calculations based on data from Economist Intelligence Unit via SNL, World Bank International Logistics Performance Index (LPI) 2018, The World Bank: Land area: Food and Agriculture Organization.
(1) Based on median LPI ranking of GFG countries.
(2) Logistic performance index ranking for Germany is 1, UK is 9 and the USA is 14.
(3) Including clothing stores, shoe stores, and perfumeries/beauty stores.
18 COMPANY PRESENTATION: MARCH 2021WE OFFER GLOBAL AND LOCAL BRANDS SEAMLESS ACCESS TO AN
ATTRACTIVE AUDIENCE AND CUSTOMER BASE
GLOBAL BRANDS
• End-to-end solution for fragmented
market AUDIENCE BRAND-
• Low investment and effort • 1 billion people BUILDING
ecommerce expansion • c.90% population digitally
• Enabler for brand.com connected
• Attractive demographics
• Under-served by global
brands / retailers
CUSTOMER BASE
LOCAL BRANDS • 16 million active
• Best-in-class e-commerce customers
platform • 2/3 female
• Benefit from scale • Urban and rural
• Expand nationally and • Young and
internationally
SALES fashion-conscious
• Digitally native
19 COMPANY PRESENTATION: MARCH 2021COMBINATION OF RETAIL AND MARKETPLACE MODELS POWER
SELECTION AND INVENTORY EFFICIENCY
WE OFFER MULTIPLE PARTNERSHIP MODELS TAILORED TO BRANDS’ NEEDS AND CAPABILITIES MARKETPLACE DRIVES
INCREMENTAL SALES
MARKETPLACE • Curated Marketplace leads
RETAIL to exponential increase in
FULFILLED BY GFG CROSS-DOCKING DROP SHIPMENT choice across brands, SKUs
and size, while maintaining
FRONT-END GFG (including payment, customer service, returns admin)
brand integrity
GFG owns product Brand owns product and pricing; books full retail value
PRODUCT OWNERSHIP and pricing GFG take rate dependent on fulfilment model ~50%
Marketplace
STORAGE GFG Brand c.60%
Brand picks and packs;
of SKUs 31%
PICKING & PACKING GFG
GFG consolidates orders1
Brand
DELIVERY & RETURNS GFG (own or 3rd party) Brand, GFG
10%
CIS, SEA LATAM ANZ, SEA, LATAM
2017 2020 Long-Term
Long Term
High TAKE RATE / LEVEL OF SERVICE PROVIDED BY GFG Low Mix
(1) GFG consolidates mixed orders at own fulfilment centres in LATAM and SEA.
20 COMPANY PRESENTATION: MARCH 2021COMBINATION OF RETAIL AND MARKETPLACE MODELS POWER
SELECTION AND INVENTORY EFFICIENCY
INTEGRATED RETAIL AND MARKETPLACE OFFERING MARKETPLACE NOW MORE THAN 1/3 OF NMV
RETAIL MARKETPLACE SHARE OF NMV
31%
• Best model for core (%)
and low risk products
• Attractive gross
margins 21%
15%
71%
Items fulfilled
MARKETPLACE 8%
10%
by GFG
• Best model for new
brands, new categories
and long tail
• No inventory risk 2016 2017 2018 2019 2020
21 COMPANY PRESENTATION: MARCH 2021OUR PLATFORM SERVICES ENABLE MARKETPLACE AND DRIVE
DEEPER RELATIONSHIPS WITH BRANDS
MARKETPLACE BRAND.COM BENEFITS
• Increase stickiness
GLOBAL FASHION PLATFORM of our Global
Fashion Platform, for
brands and
OPERATIONS BY GFG DATA BY GFG MARKETING BY GFG
PLATFORM SERVICES
customers
• Create incremental
revenue streams
• Margin enhancing
for both brands and
GFG
• Allows brands to
focus on their core
competencies
• End-to-end fulfilment services • Data-rich, actionable insights • Bespoke 360⁰ marketing services
• Extending our operational • Live in SEA (with further rollout to • Enabling brands to increase reach
advantage to brands come) and identify new opportunities
22 COMPANY PRESENTATION: MARCH 2021SUMMARY: OUR BRAND PORTFOLIO CONTINUES TO GROW AND KEY
RELATIONSHIPS STRENGTHEN
TOP 20 BRANDS / BRAND GROUPS BY NMV 2020 CORNERSTONE OF OUR BRAND PORTFOLIO
TOP 20 BRAND GROUPS BY NMV IN 2020
~29%
of Group NMV
90%
of brands on both Retail and Marketplace
90%
of brands receive GFG Platform Services
23 COMPANY PRESENTATION: MARCH 2021OUR FINANCIALS 24 COMPANY PRESENTATION: MARCH 2021
A TRACK RECORD OF SUSTAINABLE GROWTH
ACCELERATING NMV GROWTH1… … AND STRONG MARGINS… … CREATE CONSISTENT
(GROSS MARGIN %) IMPROVEMENTS IN PROFITABILITY
ADJUSTED EBITDA MARGIN (%)
+24% CAGR
26%
23% Helped by
1,958 permanent shift in
22% 1,778 Marketplace share 1.2%
20% 43.1%
1,453
1,343 40.1%
39.4% (2.8)%
38.4% (4.3)%
(8.9)%
2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020
(1) Constant currency growth rate.
25 COMPANY PRESENTATION: MARCH 2021FY 2020: DELIVERED GUIDANCE, STEPPED UP GROWTH AND
ACHIEVED POSITIVE ADJ. EBITDA
€1,958.2m 16.3m 42.1m
NMV ACTIVE CUSTOMERS ORDERS
+25.7% yoy1 +24.6% yoy +21.7% yoy
43.1% +1.2% €372.4m
GROSS PROFIT MARGIN ADJ. EBITDA MARGIN
PRO-FORMA CASH2
+300bps yoy +400bps yoy
(1) Constant currency growth rate.
(2) Includes restricted cash of €6.3m (Q3/20: €6.0m) related to buyer loan facilities in place in SEA and ANZ at the end of the period and approximately €3m draw on local working capital facilities (Q3/20: €12m).
26 COMPANY PRESENTATION: MARCH 2021STRONG GROWTH AND SIGNIFICANT EBITDA IMPROVEMENT
ACROSS ALL REGIONS
2020 3-YEAR CHANGE
ADJ. EBITDA
NMV €M ADJ. EBITDA €M NMV CAGR¹
MARGIN CHANGE
LATAM 575 11.9 24% 7.4pp
CIS 687 27.0 23% 12.7pp
SEA 342 (6.9) 29% 10.9pp
ANZ 354 13.2 20% 7.9pp
(1) Constant currency growth rate.
27 COMPANY PRESENTATION: MARCH 2021GLOBAL FASHION PLATFORM – GROWTH INVESTMENT STRATEGY
• Customer acquisition within 12-month • Tech to accelerate Marketplace and • Infill market entry in existing regions
payback Platform Services, incl. data services
• Bolt-on M&A, including for expertise
• Ongoing FC capacity expansion • Expanding adjacent categories faster or tech
and testing opportunistic categories
• Marketing innovation • Develop partnerships to expand
• Selective customer acquisition at faster in existing markets
• Investing in our Apps longer payback in some markets
• Developing our talent and skills • Innovating delivery and returns
EXPANSION OPTIONS
ACCELERATION NOT CONSIDERING
• Market entry in new regions
CORE GROWTH • Category expansion beyond broad
Fashion and Lifestyle
28 COMPANY PRESENTATION: MARCH 2021THIS GROWTH ALONGSIDE MARKETPLACE & PLATFORM SERVICES
LETS US TARGET A 10%+ ADJ. EBITDA MARGIN
2020 2021 IN 7-9 YEARS
NMV €BN €2.0bn €2.3-€2.4bn c.€10bn • Building a €10bn NMV business
NMV GROWTH (CCY) 26% 25%+ 25%+ • Long runway of sustained growth ahead in our markets
• Marketplace approaching 50% of NMV. Platform Services
MARKETPLACE SHARE 32% n.a. c.50% develop to 5% - 10% of Revenue
• Ongoing growth in gross margin enabled by Marketplace
GROSS MARGIN 43% n.a. c.50% and Platform Services
Modest • c.6% in 3-4 years, then growing to 10%+. Potential to go
ADJUSTED EBITDA MARGIN 1% improvement 10%+ beyond this further in the future
CAPEX €49m c.€60m c.€60m1
(1) In a normal year, without major fulfilment centre expansion.
29 COMPANY PRESENTATION: MARCH 2021FY2021 GUIDANCE
• Constant currency growth of over 25%
Over 25%
NMV c.€2.3-€2.4bn
• Markets remain highly uncertain with direct and indirect impacts of
Covid-19 on our customers and brand partners
• Slightly slower growth than NMV reflecting Marketplace share
REVENUE c.€1.5bn increase
Modest improvement • Environment remains uncertain, so retaining flexibility to take the
ADJ. EBITDA
on 2020 growth opportunity from greater online penetration in our markets
• New CIS fulfilment centre for launch in H2 2022
CAPEX c.€60m • Additional Tech investment supporting development of Platform
Services and Marketplace businesses
30 COMPANY PRESENTATION: MARCH 2021APPENDIX 31 COMPANY PRESENTATION: MARCH 2021
ATTRACTIVE CUSTOMER ACQUISITION PAYBACK SUPPORTED BY
ORGANIC TRAFFIC
TRAFFIC BY MARKETING CHANNEL1 CAC OVER TIME3 MANAGED WITHIN FAST PAYBACK ON OUR MARKETING
TOTAL VISITS (BN) A CORRIDOR INVESTMENTS
(€) Lower CAC in
1.1x 1.1x
2020 due to
34%
Paid
COVID-19 1.0x
SEO: 8% 12-month
payback
66%
CRM: 13%
Unpaid
App & Direct: 45%2
2020 2017 2018 2019 2020 2017 2018 2019
CLV / CAC Ratio
Source: Company information.
(1) Traffic is defined as the total number of visits on any GFG platform (app, mobile site and desktop).
(2) Also includes other unpaid traffic.
(3) Values are expressed in constant currency .
32 COMPANY PRESENTATION: MARCH 2021OUR TOP QUINTILE OF CUSTOMERS SHOP OVER 7 TIMES A YEAR
WITH US AND SPEND MORE PER ORDER
TOP QUINTILE FREQUENCY IS ALMOST 3 TIMES THE AVERAGE AND NMV / ACTIVE CUSTOMER IS 3 TIMES THE AVERAGE
7.5 393
2.9x 3.3x
120
2.6
Average Frequency Top 20% Average NMV / AC Top 20%
Source: Unaudited Management Information.
Note: Top 20% of customers defined as 20% of active customers with highest order frequency.
33 COMPANY PRESENTATION: MARCH 2021MARKETPLACE & PLATFORM SERVICES MEAN GROSS MARGIN CAN
BE AROUND 50% OVER TIME
RETAIL ACCRETION TO GROUP GROSS MARGIN
Strong retail discipline = Stable
stable margins excl. outlook (%)
Regional Mix with some
upside c.50%
43.1% c.4%
39.4% 38.4% 39.7% 1.4% c.12%
2.0% 4.7% 7.3%
3.2%
MARKETPLACE Long
INCREASING
Further gains planned. term
30bps margin accretion c.50% of
NMV
MARGINS 36.4% 34.2% 34.0% 34.5% Stable
per 1% NMV share
2017 2018 2019 2020 Future
Long
Retail Marketplace Platform Services
PLATFORM SERVICES term goal
5-10% of
High gross margin. Future Illustration: stable Retail Margin, Marketplace
Revenue
Currently small at c. 1.5% grows to 50% of NMV and Platform Services grow to 5%
of Revenue of Revenues.
34 COMPANY PRESENTATION: MARCH 2021MARKETPLACE AND RETAIL HAVE SIMILAR UNDERLYING MARGINS
BUT VERY DIFFERENT IFRS PRESENTATIONS
MARKETPLACE VS RETAIL 2020 MARKETPLACE VS RETAIL CONTRIBUTION MARGIN COMPARISON – 2020
Retail Marketplace
SHARE OF NMV AS PERCENTAGE OF SELLING PRICE NET OF VAT1
Marketplace
31% 35% 31% 14% 15%
Retail
69% Retail Margin/Take Rate Margin after Fulfilment
SHARE OF REVENUE AS PERCENTAGE OF IFRS REVENUE
Platform Services 2%
100% 48%
Marketplace 11%
35% 14%
Retail
87%
Retail Margin/Take Rate Margin after Fulfilment
(1) Retail Margin / Takerate and Margin after Fulfilment shown as a proportion of Selling Price net of VAT. Platform services costs largely below fulfilment costs line.
35 COMPANY PRESENTATION: MARCH 2021OPERATIONS BY GFG: EXTENDING OUR SUPPLY CHAIN ADVANTAGE
TO BRANDS
OUR END-TO-END OPERATIONS SERVICES…
DELIVERY & RETURNS
CUSTOMER SERVICE
• Leverages our operational assets to support brands
EPRODUCTION
that lack equivalent infrastructure
FULFILMENT
• Lower cost per order and higher basket leading to
PAYMENT
higher CLV
• Margin enhancing for both brands and GFG
… ARE LEVERAGED BY BRANDS TO DRIVE THEIR … AND TO ENABLE THEIR OWN BRAND.COM CHANNELS
MARKETPLACE SALES… NUMBER OF BRANDS USING SERVICE (#)
% OF MARKETPLACE SHIPPED ITEMS FULFILLED BY GFG1
>40
+15pp >2x
5 0
4 5
71% 4 0
56%
8 0
%
3 5
7 0
%
3 0
6 0
%
2 5
5 0
%
4 0
% 2 0
3 0
% 15
2 0
% 10
10 %
5
0%
0
2018 2020 2018 2020
(1) Includes items ‘Fulfilled by GFG’ and fulfilled via ‘Cross-docking’.
36 COMPANY PRESENTATION: MARCH 2021DATA BY GFG: COMBINING POWER OF TECHNOLOGY AND LARGE
CUSTOMER BASE
AN INTELLIGENCE SUBSCRIPTION SERVICE FOR BRANDS… … PROVIDES UNIQUE INSIGHTS INTO CUSTOMER BEHAVIOUR
Daily Live Sales and Customer and We provides intelligence into:
Weekly Inventory Product Insights
• Consumers: demographics, geo-
segmentation, trends and
preferences
• Browsing behaviour: views,
Traffic Competition conversion and other traffic
Comparisons Dashboard metrics
• Purchasing behaviour: relative
product performance, sub-
categories and price bands
purchased together, returns,
Retrurn Rate Covid-19 replenishment and more
Monitor Dashboard • Live in SEA since March 2020 Benefit for GFG
with over 1,000 brands • Strengthens loyalty to GFG especially in regions where brands don’t
subscribed. Rollout in other know customers well
regions to come • Additional high margin revenue stream
37 COMPANY PRESENTATION: MARCH 2021MARKETING BY GFG: ENABLING BRANDS TO INCREASE REACH AND
IDENTIFY NEW OPPORTUNITIES
WE OFFER A FULL SUITE OF MARKETING SERVICES FOCUSED ON BRAND- … WHICH IS DRIVING MORE AND MORE
BUILDING, INSPIRATION AND ENGAGEMENT… OF OUR BRANDS’ MEDIA CAMPAIGNS
NUMBER OF ‘MARKETING BY GFG’ CAMPAIGNS
Offline
(#)
Creative
>1,200
Sponsored
product
1, 2
00
1, 0 0
8 0
1.5x
6 0
4 0
2 0
0
Influencer Own 2018 2020
channels
Marketing by GFG enables brands to:
• Reach GFG’s huge fashion audience
• Access our data-driven marketing capabilities
and improve consumer targeting
BRAND BUILDING INSPIRATION ENGAGEMENT • Influence customers during their shopping
journey on GFG platforms
38 COMPANY PRESENTATION: MARCH 2021ACCELERATING ONBOARDING OF PREMIUM BRANDS GLOBALLY
WORKING WITH LEADING GLOBAL PREMIUM BRANDS… … TO DRIVE GROWTH
PREMIUM NMV (€M)
• Launched 30+ new premium and contemporary brands
Global in 2020
43%
• Premium category is c. 9% of NMV and growing fast
LEADING PREMIUM BRAND PORTFOLIO SIGNIFICANTLY EXPANDED IN 2020 +46%
2019 2020
Note: Growth rates are shown on a constant currency basis and therefore exclude the effect of foreign currency movements.
39 COMPANY PRESENTATION: MARCH 2021HOW WE MANAGE OUR IMPACT
OUR PEOPLE OUR OPERATIONS
• Safe, for all of those directly • Reducing the
and indirectly involved in environmental impact of
getting our products to our operations including
customers transport and packaging
• Equality, for our people, our • Assessing and mitigating
customers and our brands to our carbon impacts
express their true self OUR PEOPLE OUR OPERATIONS
OUR COMMUNITY OUR SUPPLY CHAIN
• Contributing positively to • Fair, to the people making
communities around us OUR OUR our products and to nature
• Engaging our people and COMMUNITY SUPPLY CHAIN • Collaborative, working with
providing opportunities for brands to drive continuous
them to give back improvement
40 COMPANY PRESENTATION: MARCH 2021Q4 BUSINESS UPDATE 41 COMPANY PRESENTATION: MARCH 2021
GREAT PROGRESS ON KEY PRIORITIES IN Q4
INSPIRING AND SEAMLESS STRATEGIC PARTNER TO SCALABLE OPERATIONS AND
CUSTOMER EXPERIENCE LEADING BRANDS PROPRIETARY TECHNOLOGY
• Continued acceleration of new • Accelerated brand onboarding • Improved last mile delivery drives
customer acquisition through Marketplace – 32% Q4 NMV customer experience
• 2020 new customer cohorts • Early signs that COVID 'loser' • 62% of NMV ordered via apps
continue to outperform categories rebounding in non-
lockdown markets
PEOPLE + PLANET POSITIVE
• New Brazil FC achieved zero waste to • Greenhouse Gas assessment com- • Launched sustainable shopping edit in
landfill in December pleted for 100% of operating countries CIS – 3,500 products from 400 brands
42 COMPANY PRESENTATION: MARCH 2021CONTINUED FASTER CUSTOMER ACQUISITION AND STRONG
LOYALTY TREND FROM PRIOR QUARTERS
CONTINUED ACCELERATION OF CUSTOMER ACQUISITION NEW CUSTOMERS WITH 2 OR MORE ORDERS
(M) (%)
+15% +2ppt 23
2.1
21
1.8
Continuation
of trends
seen in
Q2/Q3
Q4/19 Q4/20 Q4/19 Q4/20
(1) Q3 customers with 2 or more orders was 22% (Q3/19: 19%)
43 COMPANY PRESENTATION: MARCH 2021AUSTRALIA: ‘COVID LOSER’ CATEGORIES REBOUNDING, ‘COVID
WINNERS’ STILL STRONG
YOY NMV GROWTH
Heels
Dresses ‘Covid-losers’
Sandals
Knitwear
Sweat Tops ‘Covid-winners’
Jewellery
Jan-20 Mar May Jul Sep Nov
44 COMPANY PRESENTATION: MARCH 2021IMPROVED CUSTOMER EXPERIENCE THROUGH LAST MILE AND
HIGHER APP SHARE
IMPROVED LAST MILE DELIVERY APPS CONTINUE TO TAKE SHARE App
APP SHARE OF NMV (%) customers
have highest
repurchase
• ANZ: Competitive late cut-off for Christmas delivery, led by same- rate
day service in Sydney +6ppt 61
• CIS: Continued investing in own pick-up points; expansion of own
55
delivery network, with +110 transit hubs enabling an additional +60
cities in 2021
Q4/19 Q4/20
45 COMPANY PRESENTATION: MARCH 2021SUSTAINABILITY IS AT THE CORE OF EVERYTHING WE DO
ENVIRONMENT + ETHICS LAUNCHED LAMODA PLANET
• Greenhouse Gas assessment completed • GFG’s third sustainable edit – launched with 3,500 products from
400 brands
• Released SEA own-brand factory list (ANZ & BR already published)
• Six criteria: Recycle & innovation; Eco-composition; Care for animals;
• SEA delivery satchels transitioned to 80% recycled content Vegan; Saving the planet; I want to help.
• New Brazil FC achieved zero waste to landfill for month of December • NMV/SKU 36% higher than average1
(1) NMV per SKU sold within Lamoda Planet assortment vs total items sold from launch to 31 December 2020.
46 COMPANY PRESENTATION: MARCH 2021KPIS 47 COMPANY PRESENTATION: MARCH 2021
CONTINUED STRONG NMV GROWTH
NMV ORDERS
(€M) (M) +28.8% 13.3
Retail 10.3
Marketplace +28.9%1
594.5
553.8
22% 32% Q4/19 Q4/20
AVERAGE ORDER VALUE
(€) +0.1%1
53.6 44.7
Q4/19 Q4/20 Q4/19 Q4/20
(1) Constant currency growth rate. Bars are a graphical representation of values on a constant currency basis.
48 COMPANY PRESENTATION: MARCH 2021WE NOW HAVE >16M ACTIVE CUSTOMERS
ACTIVE CUSTOMERS AVERAGE ORDER FREQUENCY NMV/ACTIVE CUSTOMER
(M) (X) (€)
+24.6% 16.3
(2.5)% +0.9%1
2.6 2.6 136.1 120.3
13.1
Q4/19 Q4/20 Q4/19 Q4/20 Q4/19 Q4/20
(1) Constant currency growth rate. Bars are a graphical representation of values on a constant currency basis.
49 COMPANY PRESENTATION: MARCH 2021STRONG GROWTH IN ALL REGIONS, WITH THREE GROWING NMV
ABOVE 30%
NMV ACTIVE CUSTOMERS NMV/ACTIVE CUSTOMER
(€M) (M) (€)
Q4/19 Q4/20 Δ (%)1 Q4/19 Q4/20 Δ (%) Q4/19 Q4/20 Δ (%)1
Group 553.8 594.5 28.9 13.1 16.3 24.6 136.1 120.3 0.9
LATAM 164.3 160.1 30.8 5.9 7.7 31.2 94.5 74.3 (0.3)
CIS 194.5 197.6 30.9 3.0 3.6 20.7 201.7 191.8 9.6
SEA 91.5 115.2 33.4 2.6 3.3 26.7 106.0 103.6 0.3
ANZ 103.4 121.5 18.2 1.6 1.6 3.6 217.1 214.8 1.2
(1) Constant currency growth rates.
50 COMPANY PRESENTATION: MARCH 2021DISCLAIMER
Certain statements included in this document are forward-looking
statements. Forward-looking statements can typically be identified by the
use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”,
“plans”, “predicts”, “envisages” or “anticipates” or other words of similar
meaning. These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and
other factors affecting the Global Fashion Group S.A. (“GFG”) and its
group (the “GFG Group”). They are not historical or current facts, nor are
they guarantees of future performance.
By their nature, forward-looking statements involve a number of risks,
uncertainties and assumptions that could cause actual results or events
to differ materially from those expressed or implied by the forward-
looking statements. These risks, uncertainties and assumptions could
adversely affect the outcome and financial effects of the plans and events
described in this document. These forward-looking statements speak
only as of the date of this announcement. Except as required by any
applicable law or regulation, the GFG Group expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to
any forward-looking statements contained in this document to reflect any
change in the GFG Group’s expectations with regard thereto or any
change in events, conditions or circumstances on which any such
forward-looking statement is based. Neither GFG nor any other person
accepts any responsibility for the accuracy of the opinions expressed in
this document or the underlying assumptions.
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