Investor Presentation • Apr 28, 2017
Investor Presentation
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Q1 17 PRELIMINARY REVENUES MILAN, 28TH APRIL 2017
This presentation has been prepared by ePRICE S.p.A. for information purposes only and for use in presentations of the Group's results and strategies.
For further details on the ePRICE Group, reference should be made to publicly available information.
Statements contained in this presentation, particularly regarding any possible or assumed future performance of the Group, are or may be forward-looking statements based on ePRICE S.p.A.'s current expectations and projections about future events, and in this respect may involve some risks and uncertainties.
Actual future results for any quarter or annual period may therefore differ materially from those expressed in or implied by these statements due to a number of different factors, many of which are beyond the ability of ePRICE S.p.A. to control or estimate precisely, including, but not limited to, the Group's ability to manage the effects of the uncertain current local and global economic conditions on our business and to predict future economic conditions, the Group's ability to achieve and manage growth, the degree to which ePRICE S.p.A. enters into, maintains and develops commercial and partnership agreements, the Group's ability to successfully identify, develop and retain key employees, manage and maintain key customer relationships and maintain key supply sources, unfavourable development affecting consumer spending, the rate of growth of the Internet and online commerce, Italian advertising market, competition, fluctuations in exchange rates, any failure of information technology, inventory and other asset risk, credit risk on our accounts, regulatory developments and changes in tax laws.
ePRICE S.p.A. does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.
Any reference to past performance of the ePRICE Group shall not be taken as an indication of future performance.
This document does not constitute an offer or invitation to purchase or subscribe to any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
By attending the presentation you agree to be bound by the foregoing terms.
REACH PROFITABILTY
(3) ePRICE Home Service
2
3
LOCAL E-COMMERCE CHAMPION FOCUSED ON CAPTURING A HIGH-POTENTIAL, FAST-GROWING MARKET
A UNIQUE VALUE PROPOSITION TAILORED TO THE ITALIAN MARKET, SUPPORTED BY A FLEXIBLE AND SCALABLE PLATFORM
SIGNIFICANT TRACK RECORD AND GMV/REVENUE GROWTH TO GENERATE VALUE THROUGH SCALE & RELEVANCE, IN ORDER TO
133 Pick&Pay 285 Lockers 1 Fulfilment center
Q1 17 TTM Eu 262mn GMV(1) Eu 201mn Revenues
TTM Growth: +18% YoY GMV(1) +14% YoY Rev
~1.6mn customers(2) ~500 installers (3) <1000 merchants
ePRICE SpA - April 2017 2 (2) Customers who bought at least once on ePRICE or on the marketplace
"To serve the technological evolution of Italian households"
1
V-shaped growth in the Quarter: Strong positive growth in January and March offset – as expected – by February weak trends, the latter impacted by planned SAP adoption, limited promotions and to a lower extent by a slow market
Solid Growth on Core MDA Segment: > 30% market share confirmed in Q1 for the core segment of ePRICE
3 3P Marketplace Boost: new Sellers and increased SKUs fuelling marketplace growth and profitability
Tech & Appliances Retail in Italy B2C Sales (market Eu BN)
| Traditional Tech&Appliances MKT Jan-Feb 17 |
Online Tech&Appliances MKT (2) Jan-Feb 17 |
Tech&Appliances ePRICE GMV Q1 17 |
|---|---|---|
| -1.5% | c.+10% | +13% |
(1) €3.5BN Market size for current Technology & Appliances perimeter. Smart Home market estimate (€0.5BN) not included. Source: ePRICE re-elaboration on Forrester Research, GFK, other public sources and internal estimates, 2016.
(2) LFL growth first 2months 2017 vs first 2months 2016. Including restatement of offline players' Click&Collect sales (included from 2016), market up c. +13% YoY. Source: ePRICE re-elaborations on last available GFK data and internal estimates.
March: Strong recovery of ePRICE performance in March, resuming ordinary marketing/promotional activities (TV commercial back on air in Q2), including positive calendar effect.
(1) Gross Merchandise Volume includes revenues from products, shipping and 3P marketplace sales, net of returns and VAT included. Revenue from services includes transports, warranties, B2B, ADV&Infocommerce and other revenues. GMV from services does not include B2B, ADV&Infocommerce.
Acquisition of 43% in Termostore.it Goal: addressing heating&cooling products and service market with a
60 sellers with at least one order at P&P
ePRICE SpA - April 2017 10
TOWARDS A SUSTAINABLE FULFILMENT MODEL
| 2x vs. current available volume |
29K sqm integrated with ERP |
|---|---|
| +96% expandable to over 50,000 sqm |
€5M estimated Capex (including SRP) |
Confirmed stronger GMV(1) growth than reference market
Continue to enrich last mile services, with increasing coverage and further innovation expected in 2017
Resuming brand equity building through Q2 & Q3
Expecting to gain traction from Q2 17, after April's negative calendar effect, due to long Easter holidays
2017 Guidance reaffirmed
ePRICE SpA - April 2017 12 (1) GMV (Gross Merchandise Volume): it includes revenue from products, deliveries and revenue from 3P marketplace, net of returns and VAT included. It does not include B2B, infocommerce.
GMV1 up 20-25%, Revenues up 15-18%, with an accelerated growth in the second half of the year, after a weak February, adversely affected by the planned transition of the ERP system to SAP
Improvement in Gross margin and considerable increase in EBITDA compared to 2016
Capex to Euro 11 million, including one-off investments for the new fulfilment center
ePRICE SpA - April 2017 13 (1) GMV (Gross Merchandise Volume): it includes revenue from products, deliveries and revenue from 3P marketplace, net of returns and VAT included. It does not include B2B, infocommerce.
STRATEGIC GUIDELINE
TARGET 2021 METRICS
| FY 15 | FY 16 | TARGET VS. 16 | DRIVERS | |
|---|---|---|---|---|
| MARKET GROWTH | 20% | 20% (4) | 15-16% >2X |
Secular shift from offline, mobile, innovation |
| (1) GMV |
€207M | €254M | 3X ~ |
Market Growth, MDA, 3P Marketplace |
| REVENUES | €168M | €198M | 2.5X ~ |
Market Growth, B2B, ADV, Infocommerce |
| (2) GROSS MARGIN |
13.8% | 15.3% | 20%-22% | Mix&sourcing, Rebates, 3P Marketplace, Infocommerce |
| (2) MARKETING |
5.3% | 5.6% | 4.5%-5.0% | Brand Awareness, Returning Customers |
| FULFILMENT (2) TRANSPORT |
3.5% | 4.4% | 5.0%-5.5% | Now including Transport&Installation service |
| FULFILMENT (2) INTERNAL |
5.0% | 5.2% | 3.8%-4.3% | New fulfilment center, scale & efficiency program |
| (3) IT + G&A |
4.6% | 4.9% | 1.8%-2.5% | Efficiencies and scalability |
| (2) EBITDA adj. |
-4.7% | -4.8% | 4%-6% | #1 specialty player, enhanced by services |
| (2) CAPEX |
4.5% | 3.8% | 1.5%-2.0% | 2017 new fulfilment, Eu 5mn |
ePRICE SpA - April 2017 16 (1) GMV (Gross Merchandise Volume): it includes revenue from products, deliveries and revenue from 3P marketplace, net of returns and VAT included. Infocommerce and Advertising and B2B revenues not included., representing c. 6% of revenues in 9M16; (2) % of revenues incl non recurring; (3) % of revenues: of which 35% corporate&finance costs due to being listed; (4) LFL growth 2016 vs 2015. Including restatement of offline players' Click&Collect sales (included from 2016), market up c. +24% YoY.
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| 29 | 30 | 31 | 31 | ||||||||||||||
May 10 Q1 17 Full Results
Sep 13 H1 17 Full Results
Via San Marco 29
20121 Milan, Italy
corporate.eprice.it
IR
Head of Investor Relations and Strategic Planning – ePRICE S.p.A.
+39 0230315400
Investors.eprice.it
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