Full year results 2020 A winning formula for the fast-growing - PowerPoint PPT Presentation

Full year results 2020 A winning formula for the fast-growing e-commerce zone Steve Parkin: Executive Chairman & Founder David Hodkin: Chief Financial Officer Tony Mannix : Group Chief Executive Officer Sebastien Desreumaux: Chief Executive Officer Europe/ Group M&A

Disclaimer Disclaimer This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations. Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. 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 herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. No representations or warranties are made as to the accuracy of such statements, estimates or projections. Please note that the Directors of the Company are, in making this presentation, not seeking to encourage shareholders to either buy or sell shares in the Company. Shareholders in any doubt about what action to take are recommended to seek financial advice from an independent financial advisor authorised by the Financial Services and Markets Act 2000. Extensive operational capabilities Global E-fulfilment shipping 2

Contents Page: Investor highlights 4 Clipper overview 7 The ‘Clipper Way’ 15 Environmental, social and governance 19 E-commerce mega trends and Post-COVID-19 acceleration 23 Business case: Superdry 28 Headline financials 30 Clipper’s unique strategic position 36 Q&A 38 3

Investor highlights Investor highlights Clipper: a clear winner in the e-commerce zone 4

Investor highlights Financial highlights: a clear winner in the e-commerce zone • Total revenue growth of 8.8% to £500.7m (2019: £460.2m), organic growth only – 16% CAGR since IPO in 2014. • E-commerce related revenue growth of 18.4% to £277m (2019: £234m). • Strong Group EBIT growth of 19.1 % (IAS 17 basis) to £24.1m (2019: £20.2m) – (EBITDA 17% CAGR since IPO in 2014). • High cash growth from operations of +12.7% to £31.9m (2019: £28.3m). • Net debt of £45.1 m including £34.9m on back to back contracts with clients – leverage ratio Net debt/EBITDA of 1.3x , falling further since year end. • Earnings per share growth of 17.4% to 15.5p (2019: £13.2m). • Strength of performance and cash generation leads the Board to recommend a final dividend of 6.2p . 5 • Total dividend per share for the year of 9.7p (2019: 9.7p).

Investor highlights A winning formula for the fast-growing e-commerce zone 66% of Logistics revenue, +18.4% YoY Leading position in the full end to end e-commerce zone Revenue: £500.7m +8.8% Outperformed market in terms of growth and profit EBIT: £24.1m +19.1% Open book: 70 % of revenue Resilient & asset light Business Model Maintenance CAPEX : 0.8% Top 5: less than 15% EBITA First class and long-term customer relationship Typically contracted 3 to 10 years Cash conversion: 108% (IAS 17) High level of cash conversion and ROCE ROCE: >30% Aggregate +100 years experience International, highly experienced entrepreneurial Executive team to accelerate growth & value creation UK, Mainland Europe and USA 6

Clipper overview Clipper overview Pan-European leader 7

Clipper overview A pan-European leader in the e-commerce zone 50 154m units pa. of E-fulfilment 125m units pa. of SITES SI S Returns TH THROUGHOUT T 110m units pa. of EU EUROPE Pre-Retail 12million sq. ft. 121m units pa. of (1.5million sq. ft. Retail Wholesale in Europe) +15. 15.4% 4% Y YoY i increase GERMAN FACILITIES IN: BERLIN MUENCHBERG HOF Extensive operational capabilities NEUSS NETTETAL Dedicated & shared use operations POLISH FACILITIES IN: Global e-fulfilment shipping POZNAN Our Retail Solutions focus on: Taking cost, risk and complexity out of the supply chain Note: 2019 data 8

Clipper overview Segment and business activity details Non Commercial E-fulfilment & e-fulfilment vehicles returns management This business activity includes the receipt, warehousing, value-added This business activity includes receipt, warehousing, value-added The commercial vehicles business, Northern Commercials, operates processing, stock management, picking, packing and despatch of processing, stock management, picking, packing and distribution of Iveco and Fiat commercial vehicle dealerships from five locations, products on behalf of customers to support their online trading products on behalf of customers. together with three sub-dealerships. It sells new and used vehicles, activities, as well as a range of ancillary support services, including provides servicing and repair facilities, and sells parts. the management of the returns process. Business activity revenue Business activity revenue Segment revenue £277m £144m £83m % of Logistics revenue % of Logistics revenue % of Group revenue 66% 34% 16% (2019: £145m) (2019: £234m) (2019: £83m) -1.1% 0.0% +18.4% Note: The amounts and percentages shown indicate the contribution to Group revenue by each business area disregarding inter-segment sales. 9

Clipper overview Ambition: accelerated global growth in the e-commerce zone MISSION VISION 1. Out-perform the market in growth & TO BECOME THE profitability GLOBAL LEADING 2. Innovative and collaborative BRAND IN INTEGRATED 3. Deployment of the brand and expertise across new territories through strategic acquisitions FULL END-TO-END E-COMMERCE 4. Operate at the forefront of technology LOGISTICS 10

Clipper overview Ambition: accelerated global growth in the e-commerce zone Build on market- Explore Develop new, Continue leading customer acquisition complementary European proposition to opportunities products and expansion expand the services customer base 11

Clipper overview Clipper at the forefront of e-commerce Service Portfolio: RETURNS E-FULFILMENT CLICK & COLLECT REPAIR & REMEDIAL DISPOSITION MANAGEMENT 12

Clipper overview High quality customers: Top 5 account for less than 15% EBITA E-FULFILMENT & RETURNS MANAGEMENT SOLUTIONS DEDICATED RETURNS SOLUTIONS MULTI-CHANNEL SOLUTIONS RETAIL LOGISTICS INBOUND & PRE-RETAIL OPERATIONS HIGH VALUE/SECURITY OPERATIONS RETAIL/STORE TRANSPORT SOLUTIONS SUPPLIER COLLECTIONS RELIEF OPERATIONS 13

Clipper overview Trusted partners: size, scale & long-term relationships 24 Years Morrisons 22 Years John Lewis 21 years Liberty 19 years Asda (Walmart) 16 years New Look 16 years Harvey Nichols Clipper Account Portfolio by Turnover 14

The ‘Clipper Way’ The ‘Clipper Way’ E-commerce long-term enabler 15

The ‘Clipper Way’ AGILE COLLABORATIVE ENABLER OF A SCALABLE AND AND ABLE AND SOLUTION CUSTOMERS’ RESILIENT BUSINESS DRIVEN GROWTH AND MODEL PROFITABILITY EXCELLENCE IN EXECUTION OPEN BOOK AN EXPERIENCED LONG-TERM CLIENT AND SHARED ENTREPRENEURIAL & PARTNERSHIPS USER MODEL INTERNATIONAL TEAM 16