Investor Presentation • May 10, 2022
Investor Presentation
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This document has been prepared by Bike24 Holding AG (the "Company" and, together with its subsidiaries, the "Group"). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose. This document does not purport to be a full or complete description of the Company or the Group. This document does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision or other transaction whatsoever. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
No representation, warranty or undertaking, express or implied, is made by the Company or any other Group company as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. No responsibility, obligation or liability is or will be accepted by the Company, any other Group company or any of their officers, directors, employees, affiliates, agents or advisers in relation to any written or oral information provided in this document or in connection with the document. All information in this document is subject to verification, correction, completion, updating and change without notice. Neither the Company, nor any other Group company undertake any obligation to provide the recipient with access to any additional information or to update this document or any information or to correct any inaccuracies in any such information.
A significant portion of the information contained in this document, including market data and trend information, is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company or any other person as being accurate. All statements in this document attributable to third party industry experts represent the Company's interpretation of data, research opinion or viewpoints published by such industry experts, and have not been reviewed by them. Each publication of such industry experts speaks as of its original publication date and not as of the date of this document.
Certain statements contained in this document may constitute "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. No representation is made or will be made by the Company that any forward-looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations and prospects may differ materially from those projected or forecast in the forward-looking statements. Neither the Company nor any of the underwriters nor any of their respective affiliates nor any other person assume any obligation to update, and do not expect to publicly update, or publicly revise, any forward-looking statements or other information contained in this release, whether as a result of new information, future events or otherwise, except as otherwise required by law.
This document also contains certain financial measures that are not recognized under International Financial Reporting Standards ("IFRS"), including adjusted EBITDA. These non-IFRS measures are presented because the Company believes that they and similar measures are widely used in the markets in which it operates as a means of evaluating the Company's operating performance and financing structure. They may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles. See [the appendix] for a reconciliation of certain of these non-lFRS measures to the most directly comparable IFRS measure.
Figures shown is in this presentation are unaudited.
"20 years ago, Andrés Martin-Birner, Falk Herrmann and Lars Witt founded BIKE24. A 15-square-meter room in a small flat in Dresden served as the company's headquarters."
In line with guidance and despite external disruptions
Newly localized webshops show strong customer KPIs in terms of traffic and visibility as well as sales growth
Targets in terms of awareness and engagement overachieved
Full-bike segment still characterized by high demand and fast sell-through rates
Ongoing inflationary pressures and war in Ukraine causing declines in non-discretionary spending
New lockdowns and port congestions hindering supply of essential parts
Less favorable country-mix, higher packaging costs as well as temporary extraordinary logistics personnel costs to compensate for high sickness rates in warehouse
More than 835k active customers (+10% YoY, LTM) at the end of March 2022, driven by loyalty of existing customers and strong new customer acquisition in localized markets
Up +4% vs. Q1 2021 demonstrating that customers continue to be willing to pay for premium products
Q1 2022 revenues grew +7% to €62m, on top of +74% in Q1 2021, in a challenging environment with geopolitical tensions
Adj. EBITDA margin of 6.2% for Q1 2022 in line with expectations and resulting from lower gross margin, higher selling costs, temporary extraordinary logistics personnel costs and already announced investments in 2nd management level
Sales in the three localized markets are up +68% on average versus Q1 2021, driven by France (+91%) and Spain (+81%)
GROWING ACTIVE CUSTOMER BASE DRIVEN BY UNIQUE PRODUCT OFFERING
1) Active Customer: Customer who placed at least one order during the last twelve months (LTM)
ACTIVE CUSTOMER KPIs CONFIRM SEMI-RECURRING NATURE OF PAC BUSINESS
1) Defined as revenue divided by number of active customers
2) Defined as revenue divided by the number of orders
SPAIN & FRANCE IN PARTICULAR OUTGREW OTHER MARKETS AND CONFIRM EXPANSION STRATEGY
(IN EUR M)
| in % of Revenues | Q1 2022 | Q1 2021 | Change | |
|---|---|---|---|---|
| Gross Margin | 28.4% | 30.7% | (2.3%) | Gross margins back at pre-covid level as communicated |
| Performance Marketing | (1.0%) | (0.2%) | (0.8%) | |
| Selling Costs | (8.3%) | (7.8%) | (0.5%) | Higher packaging costs and less favorable country-mix |
| Contribution Margin | 19.0% | 22.6% | (3.6%) | |
| Personnel Expenses1 | (9.7%) | (7.9%) | (1.8%) | Already communicated investments in 2nd management |
| Miscellaneous Expenses1 | (3.1%) | (2.0%) | (1.1%) | level and higher number of temporary logistics workers to compensate high sickness rate |
| Adj. EBITDA Margin1 | 6.2% | 12.7% | (6.5%) |
1Adjustments of €655k (Q1 2021: €1,802k) are mainly IPO-related transaction costs and bonuses, of which €599k (Q1 2021: €454k) are adjusted for personnel expenses and €56k (Q1 2021: €1,348k) are adjusted for miscellaneous expenses. Rounding differences may apply.
NORMALIZATION OF MARGINS AS COMMUNICATED DURING IPO
FULL-BIKE SHARE OF TOTAL REVENUES ALREADY AT 25% IN FRANCE AND 16% IN ITALY DRIVEN BY CATEGORY-SPECIFIC CAMPAIGN FRANCE & ITALY REACHED SPANISH ONLINE SEARCH VISIBILITY SCORES AFTER 3 MONTHS ALREADY INSTEAD OF 9 MONTHS # OF WEBSHOP VISITS IN FRANCE & ITALY SIGNIFICANTLY HIGHER THAN IN SPAIN FOLLOWING LOCAL LAUNCH GREAT DEVELOPMENT SHOWS FEASIBILITY OF PLAYBOOK
ROLLOUT FOR LOCAL LANGUAGE CUSTOMER SUPPORT ONGOING
FOCUS COUNTRIES UP +68% IN TOUGH ENVIRONMENT AND ON THE BACK OF HIGH COMPS
| 2022 | ||
|---|---|---|
| REVENUE GROWTH (YOY) | +10-17% | LOWER END |
| ADJ. EBITDA MARGIN | 9-10% | LOWER END |
Majority of customer KPIs are up versus prior year, showing loyalty of active customers and semi-recurring nature of PAC business
Internationalization strategy as communicated during the IPO is on track and proves that our playbook works
We continue to grow faster than the market while staying profitable – not a given in today's environment
Business Update
| EVENT | DATE |
|---|---|
| Annual General Meeting (virtual) | June 21, 2022 |
| Q2 2022 Results | August 10, 2022 |
| Q3 2022 Results | November 10, 2022 |
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