Ecommerce & Retail - Presentation by Romain Voog, CEO of Global Fashion Group at the NOAH 2015 Conference in London, Old Billingsgate on the 13th of November 2015.
3. GFG MISSION
02
TO BE THE #1 FASHION PLATFORM
IN EMERGING MARKETS
FOR CUSTOMERS, BRANDS
AND SELLERS
4. 2013/2014
SCALE
03
2015/2016
CONSOLIDATION &
PATH TO PROFITABILITY
• Consolidate leader ship position
in each region and drive toward
profitability
• Leverage the scale of GFG to
deliver synergies across the
regions
• Build the platform to support
mid-term success of all regions
• Geographic expansion into
adjacent markets
• In-house logistics and fulfilment
• Private label launch
• 6 businesses founded in distinct
regions
• Built local brands
• Set up operations on the ground
2011/2012
FOUNDATION
2011 2011
2011 2011
2012 2012
WHERE ARE WE ON THE JOURNEY?
5. Population : 2.5+ bn
Fashion Market : €300+ bn
Online Fashion
(% Penetration)
Russia
Ukraine
Kazakhstan
Belarus
210m+
€75bn
5.2%
Brazil
Mexico
Colombia
Chile
Argentina
430m+
€103bn
1.8%
UAE
Oman
Bahrain
Qatar
Kuwait
Saudi Arabia
55m+
€41bn
0.2%
India
1 260m+
€43bn
0.7%
Indonesia
Vietnam
Philippines
Singapore
Malaysia
Thailand
Australia
570m+
€37bn
5.1%
Brunei
Hong Kong
Lebanon
28m+
€18bn
9%
TaiwanNew Zealand
GFG legend
Source: IMF, Euromonitor International, Converted to EUR using average FX USD/EUR=1,32 for Jan-Dec 2014
GFG IS THE #1 FASHION E-TAILER IN EMERGING MARKETS
04
6. 05
H1 2015 NET REVENUE
(in €m;; unless otherwise stated)
Source: Respective companies’ draft unaudited consolidated financial statements based on IFRS and management reports Notes:
(1) Converted to EUR using 1-Jan-15 – 30-Jun-15 average FX rates: EUR/BRL = 3.31, EUR/RUB = 64.60, EUR/INR = 70.19, EUR/AED = 4.10
(2) 1H 2015 Net revenue in respective reporting currency
418
1071)
1111)
451)
951)
591)
Pro-forma
combined
RU 6,884m(2) BRL 368m(2) AED 183m(2) INR 4,107m(2)
GFG FINANCIAL OVERVIEW
Growth, YoY 63% 81% 41% 206% 117% 27%
7. 22%
GFG IS POSITIONED IN LARGE AND HIGH GROWTH MARKETS
Online
Fashion
US EU1) EM2)
• GFG markets
as large as
US and EU
• Online Fashion
Penetration
~3-4x lower
• Growing
~10-12% faster
than US and EU
219 282 308
28 33 8
12% 10% 22%
Fashion Market,
excl. Online
CAGR
’14-’18
Source: Euromonitor International 2014
Note: Fashion includes apparel and footwear, accessories;;
(1) EU for Western Europe
(2) EM represents GFG markets
Online
Fashion
Offline
Fashion
2014FY, €bn
06
8. Offline
competition
Pop / outlet
(2013FY)
07
Source: Planet Retail, IMF, Euromonitor International Notes:
(1) Excludes China, India, Japan, and South Korea
(2) EU represents Western Europe, incl. Turkey
28,272 18,496 11,801 28,633 129,798
Online
competition
GFG
position in
regional
markets
LACK OF RETAIL OFFLINE INFRASTRUCTURE AND
LIMITED ONLINE COMPETITION REINFORCE THE OPPORTUNITY
1,150 2,799
RUSSIA
& CIS
LATIN
AMERICA
MIDDLE
EAST
ASIA
PACIFIC(1)
INDIA US EU(2)
LIMITED
#1
LIMITED
#1
LIMITED
#1
LIMITED
#1
HIGH
#1
HIGH
n/a
HIGH
n/a
Zone
9. 08
~7M
clients
served
~22M
orders
delivered
LOCAL TEAMS: 9500+ employees across emerging markets
BRAND RELATIONSHIP: Direct access to 3000+ international and local brands
CUSTOMERS
WE HAVE BUILT UNIQUE AND HARD TO REPLICATE
END TO END VALUE CHAIN
Note: Company figures LTM 1H 2015
Production
Customer
Service Fulfilment Delivery
Online
Marketing Payment
5
In house
Photo
studios
15
Regional
expert
teams
19
In-house
Call
centres
16
Operated
warehouse
facilities
>100
Cities
with own
last-mile
5
Regions with
avail. cash
payment
10. 09
• High potential: ~2/3 of global smartphone
penetration growth will happen in the GFG
markets, outside EU and US
• GFG Mobile share: Doubled over last
12 months. Up to 80% of revenues generated
in selective markets
• Accessibility: With SIX customized
regional applications,GFG is at the heart of
the fashion network
• Performance: up to 2x higher
conversion on mobile than desktop
• Innovation: constant innovation to support
Customer Mobile Experience
Brazilian iOS app
among Apple’s
“Best of 2014”
apps
Namshi iOS app is
#1 lifestyle in KSA
and in top 5 of the rest
ME markets
>10M downloads
across the Group
GFG IS LEADING THE WAY ON MOBILE COMMERCE
ACROSS EMERGING MARKETS
Source:
GSMA, Adjust
11. 10
Marketplace
Talent management
and best practices
sharing
IT Platform
synergies
Purchasing
synergies
Private
Label
Assortment -
access to key
Brands
Focus on
Mobile
GFG STATEGIC PRIORITIES
12. 11
Rocket Internet SE Tengelmann Warenhandels-
gesellschaft KG
Verlagsgruppe Georg von
Holtzbrinck GmbH
Investment AB Kinnevik
(Sweden)
Holtzbrinck
Ventures
International Finance
Corporation
Verlinvest Access Industries
€1.0+ bn
Funds raised
€3.1 bn
Valuation*
*Based on last funding round, July 2015
GFG INVESTORS & VALUATION
Globally Renowned Investors
15. Focus on Leading European Internet companies
Covering over 400 companies across 25
online verticals, a broad range of over 500
investors as well as 100+ online-focused
corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships
with potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading
investors
Annual NOAH Conference in its 8th year
Over 40 years of combined relevant M&A
experience
Routine execution of M&A and financing
transactions with sizes of several billion
euros
22 successfully completed NOAH Advisors
transactions underline successful transfer of
M&A competencies to the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for
excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures
align interests of clients and NOAH Advisors,
and demonstrate conviction to deliver top results
Creative deal solutions
September 2015 December 2014
September 2014October 2014
May 2014 February 2013
May 2012 April 2011
Sale of a 70% stake in
to
Exclusive Financial Advisor to
Drushim and its Shareholders
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
Sale of controlling stake in
to
Exclusive Financial Advisor to
Facile.it and its Shareholders
sold 100% of
for $228m to a joint venture between
Exclusive Financial Advisor to Yad2
and its Shareholders
Growth equity investment from
for a 30% stake alongside Softonic’s Founders
and Angel Investors at a valuation of €275m
Exclusive Financial Advisor to
Softonic and its shareholders
150 million growth equity investment from
for a 50% stake alongside Fotolia’s Founders and
Additional $150 million senior debt financing
Total $300 million investment
Financial Advisor to Fotolia and its Shareholders
have acquired a majority stake in
for $350m from
Exclusive Advisor to Summit Partners and TA Associates
Selected Completed
NOAH Transactions
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET CORPORATE FINANCE BOUTIQUE
®