Windeln.de SE Capital Markets Day 2018 - Munich, 4 October 2018
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windeln.de SE Capital Markets Day 2018 Munich, 4 October 2018
Disclaimer
This document and its related communication (“Presentation”) have been issued by windeln.de SE and its subsidiaries ( “Company”) and do not
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2
Overall Status windeln.de SE Matthias Peuckert and Dr. Nikolaus Weinberger
Introduction
Matthias Peuckert, CEO
• CEO of windeln.de since May 1, 2018
• Responsible for:
• All countries
• Category management
• Marketing
• Projects
• Supply Chain Management
• Logistics
• Operational Purchasing
• Customer Service
• Private Label
• Pricing
• 14+ years e-commerce experience:
• Consumables
• Media
• Consumer Electronics
• Digital Media
4
Restructuring – with the aim to become the leading
online retailer for young families
windeln.de Group
One shop platform, one ERP system, shared services and management
Priorities 2018
• Become an efficient organization in terms of processes and costs
• Develop the right product mix to deliver on customer needs and on economics
• Invest internal resources to increase customer experience, e.g. shop search and pricing
• Clean up inventory
Region (Rev. share) China (52%) DACH (22%) Rest of Europe (26%)
Measures • Extend channels/platforms - • Reorganization - • Review assortment -
ONGOING DONE ONGOING
• Extend assortment - • Finalize integration Bebitus -
• Review assortment -
ONGOING DONE
ONGOING
• Establish permanent bonded • Close pannolini.it -
warehouse - • Strengthen direct traffic -
ONGOING DONE
WORK IN PROGRESS
• One domain strategy • Divest Feedo -
• Improve customer experience -
(windeln.de, windeln.ch) - DONE
ONGOING
DONE
leaner
We want to be the leading online retailer for all families in Europe and China profitable
sustainable
5
We will implement our new strategy in two phases
Phase 1: transformation Phase 2: growth
2019/
2018 2022
2020
• Shape the organization and • Explore new adjacent growth
advance corporate culture areas
• Focus towards customers • Increase share of specialties to
a maximum level
• Reduce complexity
• Organic growth into further
• Realize synergies markets
6
We have accomplished a lot in phase 1 in 2018 already…
October 2017: February 2018: April/May 2018: July 2018: July-September
2018:
Integration of • DACH • Idetify new One-domain
Bebitus into reorganization profitable strategy • Marketing
windeln.de SE assortment implemened in strategy
• Closing of
DACH changed
pannolini.it • Inventory
clean-up • Focus on
direct traffic
2017 2018 2019
Feburary 2018: xMarch 2018: May 2018: August 2018: Break-
Announcement Assortment deep Management • Feedo divestiture even
of efficiency and dive in all shops change in EU closed
profitability Establishinh new organisations
measures • All shops running
listing rules on same technical
infrastructure
7
Advance corporate culture – change DNA of windeln.de
Bring management, employees and customers closer together by…
Pushing internal communication channels Implementing regular meetings
• Monthly success stories (introduced) • 360° meetings: employees inform employees
• Drinks after 5
Accelerating decision making
• Senior Management reduced
• ”Wrules of success“ (to be launched) • Empowerment of 2nd & 3rd mgmt. level
WRS #1: Be A Leader.
WRS #2: Learn from Your Mistakes.
WRS #3: Never Ever Give Up.
WRS #4: Be Results Focused. More structured hiring process
WRS #5: Understand Change as a Chance.
WRS #6: Ignore the Naysayers. • Avoiding similar questions
WRS #7: Customer Is King.
WRS #8: Go and Break (Some) Rules. • Along new Leadership Principles
WRS #9: Measure.
WRS #10: Be Passionate. • More streamlined process
8
Pillars of value creation
• Organizational efficiency • Extension customer lifecycle
• Headcount reduction • Private label 2.0
• Build in-house vs. buy • Category extension
• Manual vs. automated • New regions
processes • B2B initiatives
• Platform business
Cost Profitable
efficiency growth
Customer Operational
experience excellence
• Apps • Warehouse move
• Content • Pricing
• Promotions • Homogeneous infrastructure
• Search • One-domain strategy
9
Introduction
Dr. Nikolaus Weinberger, CFO
• Member of the mgmt. board of windeln.de since
May 2015
• Responsible for:
• Finance
• Payment & Fraud
• Controlling
• IT
• Legal & Compliance
• Corporate Communications
• HR
• Facility Management
• 15 years at Goldman Sachs Investment Banking in
Frankfurt, London and San Francisco
• Focus: Consumables, Retail and e-
commerce companies
• Doctoral degree and graduate degree in Business
Administration
10Financial perspective on the company – focus on
contribution margin, SG&A and cash flow
Q2 2018 WDL group CN DE CH SP PT FR
Revenues € 23.1m € 11.7m € 4.4m € 1.5m € 3.5m € 0.5m € 1.4m
Avg. Order Value € 90
Non-Consumables 50%
# Orders per Cust. 2.2x
Gross Profit Margin 24.0%
Contribution Margin (0.2)%
• Profitability • New channels • Product assortment review • Product assortment review
Focus over growth • Non- • Category extension • Category extension
Areas • Assortment consumables • Customer acq. & retention • Customer acq. & retention
• Pricing • Organizational structure • Cost optimization / centralization
Legend:
Other SG&A € (5.8)m
• Organizational structure
• Process optimization and automatization
€ (5.9)m
Adj. EBIT Below Approx. Above
(24.9)% WDL group WDL group WDL group
average average average
~€ (4)m, • Net working capital management
Cash Flow
liquidity • Financing
(current)
€ ~13m
11DACH – Stephan Bölte
Introduction
Stephan Bölte, Head of DACH
• 9 years of e-commerce experience in various industries,
such as Consumer Electronics, Musical Instruments,
Groceries incl. Baby Formula products and Pet products
• Head of DACH at windeln.de since October, 2018
• 4+ years of supply chain management
• 7+ years of vendor management incl. leading
negotiations on global level
• 3+ years in running multilayered business units
• Launch manager of the Amazon Pantry program in
Germany
• Ex-member of the bar raiser community at Amazon
• 1 year at Kare Design Supply Chain Management
14DACH – attractive but competitive market
Competitive landscape
Germany:
Population: ~82.7 million DACH
Birth per 1000 capita: 8.6
E-commerce volume: € 63.7 billion
Online market baby and toys: € 2 billion
Online
Austria:
Population: ~8.7 million
Birth per 1000 capita: 9.5
E-commerce volume: € 7.4 billion
Online market baby and toys: € 407 million Multi-
channel
Switzerland:
Population: ~8.4 million
Birth per 1000 capita: 10.5 Offline
E-commerce volume: € 6.3 billion
Online market baby and toys: € 174 million
Source: Statista
15DACH - restructuring ongoing
June 2017: November 2017: May 2018: July 2018:
Swiss office Launch of Streamlining One-domain strategy
closed diapers and organizational set-up: implemented
wipes Darly • CEO change kindertraum.ch; toys.ch
• Category windeln.ch
Management Nakiki.de windeln.de
2017 2018 2019
April 2017: February 2018: May/June 2018: August 2018:
Process Announcement of • Review of product
optimization: shop profitability and assortment Implementation of
system migration efficiency • Delisting + Dynamic Pricing tool
of all European measures
shops • New listing rules
16Strategy – extending customer lifecycle
Supported by over 130,000 followers* on Facebook!
* Combined number for windeln.de and windeln.ch, as of September 24, 2018
17Strategy – extending customer lifecycle
#1: SELECTION
Supported by over 130,000 followers* on Facebook!
* Combined number for windeln.de and windeln.ch, as of September 24, 2018
18#1: SELECTION – focusing on the right products
Family Expansion
Moving away from purely focusing on baby related products
Adding products for pregnant and post pregnant women
Extending the age of children to be addressed to 6 years
Curation
Increased focus on Contribution Margin profitable products
Reducing the current assortment from currently 50K products down to 40K by
De-listing low volume brands (focus on Fashion & Toys) to reduce complexity
De-listing of longtail low margin products
Private Label
Significantly reducing number of private label brands from ~5 down to 2
Darly for all FMCG products
Max & Lilly for hardlines & fashion related products
Reducing count of products from ~1.3K to 500 in order to get better terms due to higher volumes
19New Pricing Tool: Up and running for DACH
Gross Profit Margin Development:
New Pricing Tool implemented
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
4 weeks avg. before launch 4 weeks avg. after launch Goal
Note: Gross Margin from Orders for DACH region.
*excl. CW38, due to a diapers promotion negatively diluting the gross profit margin % as funded via backend terms.
20Closing the remaining Gross Profit Margin % gap
21Inventory – cleaning up the DACH inventory Note: Gross inventory value. 22
Strategy – extending customer lifecycle
#2: MARKETING
Supported by over 130,000 followers* on Facebook!
* Combined number for windeln.de and windeln.ch, as of September 24, 2018
23#2: Marketing – spending wisely
Social Media
Focus on influencer marketing, e.g. daddychannel
Creating awareness for Nutrition category: fitmom.2018
„Familyblogs-Post der Woche“
Laser Focus
Focus marketing only on Contribution Margin positive products
Evaluate customer lifetime value
Identify repeat drivers and move focus from a pure product level to basket level
Drive cooperations with comparison pages
Leverage Synergies
Intensifying collaboration with Bebituts and our colleagues in Romania
Outsourcing of repeat tasks, e.g. creation of graphics to Romania
24Strategy – extending customer lifecycle
#3: INNOVATION
Supported by over 130,000 followers* on Facebook!
* Combined number for windeln.de and windeln.ch, as of September 24, 2018
25#3: Innovation – focus on the future
Pregnancy App
Linking a unique user experience to the regular windeln.de store
Focusing on linking advise with conrete product recommendations
Running deals in the pregnancy app
B2B Business/Marketplace Expansion
Evaluating new marketplaces, e.g. Ebay & Amazon
Focus on CM2 positive products only
Leveraging traffic, especially during peak (Q4) when our paid marketing has no effect
App based tool incl. forecasting system for users
Storchenbox
40% sold in less than 3 weeks
Great reviews (5 stars in average)
Increasing loyalty as customers show high repeat rates
26The Pregnancy App - +350 reviews (4.7 stars)
„Tip top, dank Suchmaschine
schnell und übersichtliches
„Toll Produkte und leicht zum Shoppen!“
bestellen!“
30. Juni – joana87 Zwillinge
25. Juni – Bibiiso
„Schnelle, unkomplizierte
Handhabung! Ich bestell nur
noch über die App!
15. Juli – sassi_maus
„Top, teils sehr gute Angebote!
Sehr schnelle Lieferung!“
Vor 1 Jahr – hira72
27#3: Innovation – focus on the future
Pregnancy App
Linking a unique user experience to the regular windeln.de store
Focusing on linking advise with conrete product recommendations
Running deals in the pregnancy app
B2B Business/Marketplace Expansion
Evaluating new marketplaces, e.g. Ebay & Amazon
Focus on CM2 positive products only
Leveraging traffic, especially during peak (Q4) when our paid marketing has no effect
App based tool incl. Forecasting system for users
Storchenbox
40% sold in less than 3 weeks
Great reviews (5 stars in average)
Increasing loyalty as customers show high repeat rates
28Storchenbox – creating loyal customers
We reached ~40K customers since the launch of the Storchenbox
30% sold already, inline with the planned sales
Coverage on Facebook and Instagram
Great customer reviews (5 stars in average)
The Storchenbox is generating customers we have not reached before
29China – Julia-Caroline Schmidt
31Introduction
Julia-Caroline Schmidt, Head of China
• 11 years of professional experience; focus on
FMCG
• Head of China Business at windeln.de since
July 2016
• 4+ years Brand and Business Unit Manager
August Storck KG, Singapore & China
• 4+ years Group Manager L‘Oréal Switzerland
• MSc in International Management
322018: windeln.de invests in expansion & growth projects
Market developments China: Series of one-off effects
Q4 2017: May – June, 2018: Q1 2019:
China market: Temporary customs problem Projected go live of bonded
Build up of leading to the delay of warehouse for
excess supply of 8000+ parcels for more than windeln.com.cn & other
milk powder four weeks impacting re- platforms
purchasing rate
2017 2018 2019
Tmall Global
Award 2018
Q1 2018: June 2018: Q3 2018: By Q2 2019:
Winning prestigious Go live of Customer event in Germany Enlarge presence on leading
Tmall Global Award permanent bonded showcasing windeln & Chinese cross-border e-
for the „Mother & warehouse for Aptamil relaunch commerce platforms
Baby“ category Tmall Global
33Our Key Strength:
windeln.de - a trusted German retailer with localized
solutions
Offerings in the Chinese market Achievements
Present in social Launch Alipay Customer service Tmall Global
in Vietnam Bonded warehouse Award 2018
media payment method
$
Technology to Team China in Direct Express Launch China Tmall Global
identify Chinese Munich (15 FTEs) Delivery UnionPay payment Award 2017
Customers method
中国
Honored
Web-Shop in Server in China Shop on Tmall @Alibaba’s 18th
Chinese Global birthday
China App
Entrance in
Chinese market
Certification
agreement
Office in Shanghai
34Three types of Cross-Border E-Commerce consumers in
China: windeln.de‘s focus is on two key groups
Overseas shopper – only Overseas shopper – only Overseas products but price
trust in foreign shops trust in individuals & delivery conscious
• Haitao (to search overseas) • Daigou (buying on behalf of) • Consumers buying on Chinese
• Typical customers on windeln.de • Needs a personal connection platforms
web shop and trust • Focus on fast delivery and
• Key focus: Germany‘s reputation attractive prices
& close supplier relationships • Prefer BWH delivery over
German warehouses
35Moving from a baby food centered portfolio to a wider range of skincare, nutrition & luxury items 2017 Tmall Global Annual Consumers Report 36
Moving from a baby food centered portfolio to a wider
range of skincare, nutrition & luxury items
Category Evolution
Category Mix 2017
11%
86%
Food & Feeding Other
Projected Category Mix 2019
14%
3%
1%
5%
77%
Food&Feeding Drugstore/Beauty Fashion Nutrition Other
375 lucky customers and Key Opinion Leaders spending a
week in Germany to explore windeln.de‘s world & partners
CEO Livestream Nuk workshop
Naty eco diapers
Aptamil workshop
Warehouse visit
Venta factory
38Engaging millions of potential customers through
innovative cooperations with KOLs
Visit of Chinese customers
to Germany: KOL “Kanhai”
updated daily our activities
on her official Weibo*
Overview of different
posts: (views// likes //
forwards // comments)
Naty: 3,8mio // 859 // 741
// 251
CEO interview: 3,58mio
// 739 // 555 // 184
Aptamil: 3,39mio // 680
// 616 // 167
Venta: 2,93mio // 1033 //
841 // 190
Nuk: 2,59mio // 842 //
725 // 176
Erdbär: 2,09mio // 716 //
562 // 171
Posts of last year’s KOL averaged around 50’000 views; KOL = Key Opinion Leader/ Influencer
* Weibo = largest Chinese micro blogging service 39Tmall Global and Kaola dominate the Chinese cross
border e-commerce universe
2018 Q2 Cross-border e-commerce market share – B2C
Others, 9.1%
Daling, 0.5%
Fengqu (SF), 0.9%
Jumei Global, 1.9%
Tmall Global, 29.1%
Suning Global, 2.7%
Little Redbook, 4.0%
Amazon Overseas,
5.9%
VIP Global, 9.7%
Kaola, 22.6%
JD Global, 13.7%
Source: Analysis report. Data from GMV of China independent CBEC website and CBEC section of China e-commerce website (e.g. Tmall Global, JD Global), but
not including Overseas website CBEC to China and Non-enterprise CBEC. Besides, GMV of imported goods through general import is not stripped.
40Solid development Net Revenues on Tmall
3,500,000
Comments:
3,000,000
• Go live on
permanent
2,500,000 bonded
warehouse in
June 2018
2,000,000
• Focus on
cash
conversion
1,500,000 cycle
• Change of
operating
1,000,000 partner July
2018
500,000
• Introduction
of new
categories
ongoing
0
Aug Sep Okt Nov Dez Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jul 17
16 16 16 16 16 17 17 17 17 17 17 17 17 17 17 17 18 18 18 18 18 18
Net Revs 80,81 106,5 141,9 828,4 436,5 321,9 254,2 796,1 490,3 588,5 944,6 997,4 840,4 704,3 375,6 3,157 1,248 1,058 622,4 696,6 789,7 556,6 1,197
41With bonded warehouses in mainland China shorten
delivery time to max. 3 days
8-14
days
Flight to China
5-9
days
Local warehouse delivery from China (open to Tmall Global store, starting 2019 also for China shop)
max 3
days
42Referral program & App catering to specific Chinese
demands
Referral Program: China App:
• New category tree for easy search
• In-app live chat with customer service
• Quick add to cart and easy product sharing
43Growth opportunities beyond current setup
Windeln and me Aptamil Relaunch
• Successful
event with 5 • First recipe change for
guests visiting the Aptamil range in 15
Germany for years!
one week • Improved formula and
including 2 new design
KOLs* • Launch date:
• 2-3.8 million September 19
views for each with strong
KOL post marketing push
Fashionette New regions
• Exciting cooperation • Entering
with fashion opportunistically
powerhouse new regions with
fashionette to offer high birth rates for
luxury handbags to selective products
Chinese customers • Evaluation phase
through web shop
• Test phase planned in
Q4
KOL= Key opinion leader/ spokes person
44Bebitus – Erich Renfer
Introduction
Erich Renfer, Head of Bebitus
• Since July 2018 Head of Spain, Portugal and
France at windeln.de SE
• Since May 2016: Managing Director of windeln.ch,
Deputy Managing Director windeln.de
Topics at windeln.de SE:
• Integration of the Swiss operations in HQ
Munich
• Consolidation of DE & CH Channel
organizations to DACH-Team
• Migration Swiss shops to shop platform 2.0
• 6+ years of Digital Business and E-Commerce
experience
• Master of Science in Business Administration
47Very attractive market environment but competitive in
multi-channel area
Competitors
Spain:
Population: ~46.7 million
Birth per 1000 Capita: 8.4
E-Commerce volume: € 15 billion
E-Commerce volume baby and toys: € 600 million Online
Portugal:
Population: ~10.3 million
Birth per 1000 Capita: 8.4
Multi-
E-Commerce volume: € 2.7 billion
channel
E-Commerce volume baby and toys: € 171 million
France:
Population: ~67.2 million Offline
Birth per 1000 Capita: 11.4
E-Commerce volume: € 44.8 billion
E-Commerce volume baby and toys: € 1.6 billion
Ine.es, ine.pt, insee.fr, statista.com
48Focus on contribution margin, SG&A and cash flow –
also at Bebitus
Q2 2018 WDL group CN DE CH SP PT FR
Revenues € 23.1m € 11.7m € 4.4m € 1.5m € 3.5m € 0.5m € 1.4m
Avg. order value € 90
Non-Consumables 50%
# Orders per Cust. 2.2x
Gross Profit Margin 24.0%
Contribution Margin (0.2)%
• Profitability • New channels • Product assortment review • Product assortment review
Focus over growth • non- • Category extension • Category extension
areas • Pricing consumables • Customer acq. & retention • Customer acq. & retention
• Organizational structure • Cost optimization / centralization
Legend:
Other SG&A € (5.8)m
• Organizational structure
• Process optimization and automatization
€ (5.9)m
Adj. EBIT Below Approx. Above
(24.9)%
WDL group WDL group WDL group
average average average
~€ (4)m; • Net working capital management
Cash Flow
liquidity • Financing
(Current)
€ 12m
49Focus on contribution margin, SG&A and cash flow –
also at Bebitus
Q2 2018 SP PT FR
Revenues € 3.5m € 0.5m € 1.4m
Avg. order value
Non-Consumables 50% >50%
# Orders per Cust.
Gross Profit Margin
Contribution Margin
Legend:
• Product assortment review
Focus • Category extension
areas • Customer acquisition & retention Below Approx. Above
• Cost optimization / centralization WDL WDL WDL
group group group
average average average
50Bebitus timeline – transformation since integration of
Bebitus in October 2017
2019
July 2015: October 2017:
• New communication strategy
windeln.de Integration of Bebitus
acquisiton of • Development of new and
Bebitus profitable product portfolio
• Launch pregnancy App
2015 2016 2017 2018 2019
August 2015: 2018:
Launch of • New Head of Bebitus
bebitus.fr and • Bebitus Strategy 2.0 and
bebitus.pt organizational streamlining
• Reduction of Marketing-Budget
• Product portfolio restructuring 51Significant improvements since beginning of the year
Cost-efficiency Process-efficiency
• Substantial reduction of SG&A costs of 40% • Integration of standardized purchase and
(Q1/2018 vs. Q3/2018) listing process
• Finance, Operations, Product Data fully • Implementation of a new campaign and
centralized promotion framework
• Cut of marketing expenses by approx. 40% • Transparency on accountabilities
(Q1/2018 vs. Q3/2018)
• Inventory reduction of approx. EUR 950k within
the last 6 months
Profitability
• Promotion Blacklist for low contributors
• Delisting of loss leading categories & products
• Bundle-Strategy of products with a low contribution
margin
• Paid-Channel optimization based on contribution
margin after marketing expenses
52Changing and extending the life-cycle: from recurring to
become relevant in the early days of pregnancy
Recurring categories remain Non-Consumables categories Extension of customer life-
important traffic drivers driving profitable growth cycle
• Shift to high margin products within • Investment in new strategic • Launch of specific categories to
low margin categories categories extend the customer life-cycle
from 3 years to 6 years.
• Additional marketing funding of • Furniture (e.g. convertible cradles
suppliers & nursey, high chairs, safety) • Fashion
• Focus mainly in non-paid channels • Gear (e.g. Bicycle trailers & bike • Toys (e.g. bike & tricycles,
seats) outdoor, learning)
100% 20
90% 18
80% 16
70% 14
60% 12
Non-Consumables
50% 10
Consumables
40% 8
Gross Margin from Orders in %
30% 6
20% 4
10% 2
0% 0
Strategy 1.0 Strategy 2.0 53We are helping families from the early journey onwards: an
understanding sparring partner for every moment
Perception Content & Guides Communication
• Reliable and competent • Entertaining but low quality • Short term promotion
partner content • Focus in paid-channels
• Expert in diapers & food • Duplicated content and • No personalization
Today
• Highly driven by product listings
promotions in
consumables categories
• Sparring partner of the • High-quality content • Distinction of category and
family • State-of-the-Art landing user needs
• pages • Differentiation between
Future
Relevant products for the
whole family • Advices and assistance campaign- & promotion-
• Vital community everywhere and anytime Management
• Clear non-paid strategy
• Personalized
54Sharing knowledge and experience across units and
functions: Strategic projects
Magazine & Pregnancy App Pricing-Tool Content & Graphics
55Update on Selected Financial Topics - Dr. Nikolaus Weinberger
Financial perspective on the company – focus on
contribution margin, SG&A and cash flow
Q2 2018 WDL group CN DE CH SP PT FR
Revenues € 23.1m € 11.7m € 4.4m € 1.5m € 3.5m € 0.5m € 1.4m
Avg. Order Value € 90
Non-Consumables 50%
# Orders per Cust. 2.2x
Gross Profit Margin 24.0%
Contribution Margin (0.2)%
• Profitability • New channels • Product assortment review • Product assortment review
Focus over growth • non- • Category extension • Category extension
Areas • Assortment consumables • Customer acq. & retention • Customer acq. & retention
• Pricing • Organizational structure • Cost optimization / centralization
Legend:
Other SG&A € (5.8)m
• Organizational structure
• Process optimization and automatization
€ (5.9)m
Adj. EBIT Below Approx. Above
(24.9)% WDL group WDL group WDL group
average average average
~€ (4)m, • Net working capital management
Cash Flow
liquidity • Financing
(current)
€ ~13m
58SG&A expenses - significant decrease after lowering of
headcount
Adj. Selling, General & Administrative costs Measures taken so far
In EUR million 8.6
7.9 8.1
7.7 7.7
7.2 7.1 6.9
6.5 • Reduction of senior management
5.8 / mgmt. board
• Integration of Bebitus
• Divestiture of Feedo
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 • Outsourcing customer service
• Simplification of organizational
Number of active Full Time Equivalent (FTE) Employees* structure
• Build-up IT capabilities in Sibiu
446
387
219
Dec 16 Dec 17 Aug 18
59
* Currently, 14 FTE employees are in parental leave or absent because of long-term illnessNet working capital – significant inventory reduction over
the last months
Inventory (EUR million)
27.7
26.4
20.3 20.2 19.7
19.2 19.2
17.8 16.9
12.9
Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
Q3 closing ongoing
Days inventory (DIO) 80 90 59 47 49 46 53 45 71 65
Accrued advertising revenues +
vendors with credit balance 1.5 2.7 2.8 3.0 2.1 2.6 2.6 3.9 7.2 1.8
(EUR m)
Net Working Capital 11.9 15.7 6.1 8.0 6.6 7.5 11.3 10.6 19.1 9.2
(EUR million)
as % of LTM revenues 6.5% 8.3% 3.1% 4.2% 3.5% 3.9% 5.8% 5.7% 10.9% 6.1%
Note: Net Working Capital (NWC) defined as inventories, prepayments, trade receivables, accrued advertising subsidies, vendors with credit balance minus trade payables and deferred revenues. 60Cash Flow
Adj. EBIT and cash outflow by quarter – clear reduction
in cash outflow in 2018
Adjusted EBIT and Cash outflow1)
EUR million
Q1 '16 Q2 '16 Q3 '16 (2) Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18
4.0
Cash Outflow 2016: Cash Outflow 2017: Cash Outflow Q1-Q3 2018:
2.7
EUR -41.6m EUR -30.0m EUR -12.7m
2.0 (incl. EUR 5.2m cap.
increase)
0.0
Q3 closing
-2.0 -1.5
-4.0
-4.1
-4.9 -5.2
-6.0 -5.4
-5.8 -5.9
-6.3 -6.3 -6.3
-6.5 -6.6 Net Liquidity1)
-8.0 -7.4 -7.3-7.5 Higher EUR 13m
inventory 30-Sep plus
Pre-stocking levels for EUR 0.4m
-10.0 China BWH additional deferred
-9.8 bonded warehouse
-10.0 and
& Bebitus plus cash purchase
earn-out payments outstanding price
-12.0 -11.3 mktg. -11.3
-11.6 Feedo
Closure of rebates
Shopping suppliers
Adj. EBIT Cash outflow
Club
1) Includes cash and cash equivalents, time deposits and restricted cash (excluding drawn financing).
2) Excluding inventory reduction of approx. EUR 8.6million related to closure of shopping club
Note: Excludes Feedo from Q1 2018 onwards. 61Adj. EBIT break-even targeted for early 2019 – three
drivers
Status Quo Early 2019
China
• Adj. EBIT business
~ EUR (4)
million
European Adjusted
• Cash business EBIT
available break-even
EUR 13
million SG&A
cost savings
Further positive New leadership, IMF Product relaunch,
Leavers until impact from already Assortment review, Referral program, Product
break-even implemented cost Category extension, diversification
measures App, Pricing tool
Continous Assess B2B, Private Bonded Warehouse,
Leavers improvement in label 2.0, Central Channel extension,
beyond organization and warehouse Assess new regions
processes
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