FY 2019 Investor Presentation | February 2020 1
Our sustainable growth model 2
Key elements defining our model VALUE 1 Trusted and reliable partner with a clear value proposition 2 Leading positions in attractive channels and ADDING specialised markets 3 Entrepreneurial segments powered by our distribution centralised Group platform 4 partner Track record of strong and consistent profitable growth 5 Focused on organic growth complemented with strategic M&A 3
Value proposition Differentiated sourcing Supply chain excellence Linking suppliers Delivering FMCG to the and customers that are right place, difficult to connect at the right time Fully bonded Regulatory supply chain expertise Highly efficient logistical platform 4
Three business segments with diversified activities Distribution of bonded liquors Specialty distribution of Specialty retail at high traffic and health & beauty products FMCG products to maritime airports and remote locations to specialty retailers and and remote markets online end-customers TURNOVER 2019 TURNOVER 2019 TURNOVER 2019 € 1,408.2 m € 497.8 m € 140.0 m 69% 24% 7% of Group turnover of Group turnover of Group turnover Liquors Health & Beauty 46% 42% 12% 69% 31% of Segment turnover of Segment turnover 35% 65% of Segment turnover of Segment turnover 5
Serving four fragmented key markets worldwide Retail B2B Remote Maritime Retail B2C Empowering Partner in remote Serving complex Experienced wholesalers and distribution end-markets in specialty retail retailers Ship suppliers and Value for money End-customers Caterers at remote cruise lines retailers, secondary in (travel) retail outlets industrial sites, channels and and on e-commerce peacekeeping missions, e-commerce platforms, platforms government and underserved and defence operations duty-free markets 6
All powered by a centralised backbone Legal & Finance & Safety & IT Distribution HR Compliance Control Security 7
Selected niches exposed to attractive long term trends Our markets & channels Channel trends Market trends Globalisation E-commerce Digitisation Selected distribution Value retail Market disruption Travel Increasing compliance standards 8
Resulting in organic turnover growth complemented with selective M&A Rdam / Weeze Lagaay FragranceNet.com Discontinuation of non-premium-brand perfumes 148 Alcodis Topbrands 114 103 (in million €) 65 acquisitive Capi organic UCVF 38 1,831 58 9 1,632 1,404 1,338 1,274 1,152 964 845 816 677 573 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Dutch GAAP IFRS 9
Selective M&A to expand our role in the value chain Value Travel E- retail Retail commerce markets B2B B2C B2C EU USA Middle East geographies expansion Personal Pharma products care ceuticals 2012 2015 2017 2018 2019 10
Disciplined execution of our M&A strategy 2019 2018 2020 & beyond ▪ Further build our position FragrancetNet.com Lagaay Group Airport shops Weeze in the value chain & Rotterdam Expanding our footprint Adding to our single ▪ Targeted companies that to the US, our role in source supply offering Adding to our position in match our business model the value chain and regional airport retail to maritime and remote and entrepreneurial culture further growth in Health operations within the EU ▪ With potential for further & Beauty organic growth 11
FY 2019 Results 12
Performance highlights FY 2019 Unfavourable developments Growth in Health & Beauty Strong Asian markets category cash flow ▪ ▪ ▪ Trade war and Hong Kong protests Identified business opportunities in As a result of focus on maintaining had an effect on demand for luxury B2B distribution to value retail and volumes in Asia and continuous products in Asia in 2019 e-commerce focus on working capital ▪ ▪ Effect of these market Reorganisation and expansion circumstances became evident for robotised infrastructure and the Group from Q3 onwards automated processes for organic ▪ Advancing beyond the level we growth & roll out B2C model to EU ▪ anticipated in the latter part of Q4 Steps taken in roll out B2B model ▪ Gross profit for the year in both our to US ▪ Liquor category in Asia and our Resulting in 28.2% growth (11.3% fast-moving consumer goods organic) in this category activities in the B&S Segment were impacted 13
FY 2019 – Highlights ▪ Overall: 13.3% to € 1,978.8 M Overall turnover growth ▪ Organic: 4.9% ▪ EBITDA of € 114.6 M EBITDA ▪ Pre IFRS 16 EBITDA came in at € 104.6 M (2018: € 109.0 M) Business segment ▪ All business segments contributed to turnover growth individually ▪ HTG +17.7% | B&S +11.7% | Retail +2.5% contribution ▪ Net cash from operations of € 114.7 M (2018: € 3.5 M) Cash flow ▪ Inventory in days: 80 (2018: 92) ▪ Debtors in days: 37 (2018: 43) ▪ FragranceNet contributed to HTG segment (9 months) M&A ▪ Lagaay contributed to B&S segment (5 months) ▪ Airport shops Rotterdam & Weeze contributed to Retail segment (7 months) 14
Business segment performance FY 2019 ▪ Good performance in Health & Beauty ▪ Performance improvements after Q2 did ▪ Performance Airport Electronics as from value retail and e-commerce not advance due to developments in expected markets in EU and USA Asian markets; anticipated growth did not ▪ Contribution of Rotterdam & Weeze materialise ▪ Performance in Liquor Asia affected by airport ongoing margin pressure; partly offset by ▪ Staff costs in this segment reflect the performance of Liquor Europe that was in anticipated further volume growth, line with expectations resulting in material EBITDA decline 15
Key figures FY 2019 € million (unless stated otherwise) Δ (%) FY 2019 FY 2019 Pre FY 2018 ▪ Turnover grew 13.3% reported IFRS 16 reported reported ▪ Gross profit grew 12.2%, Profit or loss account margin slightly decreased to Turnover 1,978.8 1,978.8 1,746.5 13.3% 13.7% Gross profit ( margin ) 271.9 13.7% 271.9 242.3 13.9% 12.2% ▪ Acquisitions contributed 5.8% 6.2% EBITDA (margin) 114.6 104.6 109.0 5.1% positively to gross profit Depreciation & amortisation 10.7 26.6 16.9 148.6% margin, offset by Profit before tax 77.5 78.2 90.8 (14.7%) Net profit 60.3 60.8 71.4 (15.5%) developments in Asian markets EPS (in euro) 0.56 0.72 (22.2%) ▪ Increase in personnel costs primarily related to the full year consolidation of FragranceNet.com and the increase in staff costs in the B&S Segment 16
HTG Key figures – category breakdown Liquors Liquors € million FY 2019 FY 2018 Change ▪ Impact of the USA – China trade Turnover 497.3 483.5 2.9% war and turmoil in Hong Kong on Gross profit 30.1 42.1 -28.5% 6.1% 8.7% our Liquor category became evident in Q3 and amplified in Q4. EBITDA 12.6 24.7 -48.9% ▪ Our Liquor category in Europe EBITDA Margin 2.5% 5.1% -2.6% realised growth in line with expectations. Health & Beauty Health & Beauty € million ▪ FY 2019 FY 2018 Change Increased focus and demand from the value retail in Europe and Turnover 914.2 713.1 28.2% Health & Beauty markets in Europe, Asia and USA. Gross profit 143.3 15.7% 104.7 36.9% 14.7% EBITDA 76.5 56.4 35.6% EBITDA Margin 8.4% 7.9% 0.5% 17
B&S key figures – FY 2019 FY ▪ € million 11.7% turnover growth for FY FY 2019 FY 2018 Change 2019 Turnover 497.8 445.6 11.7% Gross profit 60.5 12.2% 59.3 13.3% 1.9% ▪ Focus on serving volume EBITDA 19.3 21.4 -9.8% contracts resulted turnover EBITDA margin 3.9% 4.8% -0.9% growth for the B&S Segment; EBITDA pre IFRS ▪ 13.9 21.4 -35.0% Gross profit margin amounted 16 EBITDA margin pre to 12.1% (FY 2018: 13.3%) 2.8% 4.8% -2.0% IFRS 16 ▪ EBITDA margin decreased to 3.9%. Mainly as the result of declining gross margin and increased staff cost. 18
Retail key figures – FY 2019 FY ▪ Turnover increase of 2.5% to € € million FY 2019 FY 2018 Change 140 M with an increased gross Turnover 140.0 136.6 2.5% profit to € 35.9 M following Gross profit 35.9 25.6% 34.7 25.4% 3.7% acquired Airport shops and new shop openings EBITDA 9.5 10.6 -10.1% ▪ EBITDA margin 6.8% 7.8% -1.0% EBITDA and EBITDA margin were impacted by staff costs and operating expenses related to the new shop openings. 19
Overall turnover growth analysis FY 2019 ▪ The HTG and B&S segment are the main contributor to organic turnover growth; ▪ The inclusion of the acquisitions of FragranceNet.com, Lagaay Medical Group and airport retail Rotterdam and Weeze contributed € 148.4 M ▪ The development of the EUR/USD exchange rate had an effect of € 27.1 M on turnover 20
Financial position € million (unless stated otherwise) FY 2019 FY 2018 ▪ Net debt stood at € 296.0 M (FY 2018: € 312.7). Net debt post IFRS 16 stood at € 367.4 Financial position M. Solvency ratio * 34.6% 34.3% Net debt * 296.0 312.7 ▪ Net debt / EBITDA stood at 2.8 Net debt / EBITDA * 2.8 2.9 (FY 2018: 2.9). Post IFRS 16, Inventory in days 80 92 net debt / EBITDA stood at 3.2 Working capital in days 95 113 Notes * Excluding IFRS 16 lease liability. 21
Net debt development FY 2019 22
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