Investor Presentation | HY 2019 1
A unique value adding proposition Differentiated Long term relation- Broad and relevant sourcing Supply chain ships with A-brand assortment of FMCG excellence suppliers Linking suppliers Delivering to the right place, and customers that are difficult to at the right time connect Fully bonded Regulatory supply chain expertise Serving complex niche Providing customers markets worldwide tailored solutions Highly efficient logistical platform 2
Serving a diversified customer base worldwide Empowering wholesalers and retailers (B2B) Serving complex end-markets in maritime Experienced in retail (B2C) Partner in remote distribution 3
Entrepreneurial segments supported by centralised backbone Legal & IT HR Distribution Finance & Control Compliance Distribution of bonded liquors and Specialty retail at high traffic Specialty distribution of FMCG health & beauty products to airports and remote locations products to maritime and remote specialty retailers and online end- markets customers 25% 67% 8% of 2018 Group turnover of 2018 Group turnover of 2018 Group turnover 4
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 5
Solid sales channels that are exposed to attractive long term trends Business segments B&S Group markets/ channels Attractive long term trends Contribution to B&S Group turnover 2018 Turnover per segment 2018 Market Channel 40.7% Outsourcing 27.2% Value retail € 1,197 M Fragmentation and complexity 6.7% Globalisation E-commerce 7.3% A-brands and 10.3% luxury € 446 M Travel Compliance 7.8% € 137 M Column1 6
A defensive profile towards macro economic developments Bonded supplier Diversified supplier Robust and global status and customer basis product categories limiting the impact with limited with mainly A- of geopolitical dependency on a branded products that developments single market outperform in economic hardship 7
Striving for continuous economies of scale Investments in logistics and IT solutions on Group level Combining segmental purchasing and sourcing activities Utilising our global footprint to leverage price position 8
Firmly focused on continuous organic turnover growth complemented with selective M&A Discontinuation of FragranceNet.com non-premium-brand perfumes Alcodis 114 Topbrands 103 65 Capi (in million €) Acquisitive UCVF 38 Organic 58 9 1,633 1,393 1,338 1,275 1,152 964 845 816 695 573 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dutch GAAP IFRS 9
Resulting in a strong track record of profitable growth Discontinuation of non- premium-brand perfumes 1,747 Turnover EBITDA CAGR ’09 - ’18 CAGR ’09 - ’18 1,495 109 106 1,339 13.2% p.a. 17.3% p.a. 1,338 89 Pressure on 1,152 84 China luxury gifting 1,002 903 65 825 59 52 677 47 573 38 26 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dutch GAAP IFRS Dutch GAAP IFRS 10
Well positioned to capture growth opportunities Synergy effects Acquisitive growth Boosting organic Organic growth of acquired company growth • Business model fit Expansion by increasing presence in • Integration focused Value chain expansion on organic growth our current markets Sourcing synergies Tapping into new products and Strategy markets Combined market Disciplined on price knowledge Initially structured as Cross-selling of products to existing partnership or JV customers Centralised backbone Rapid back office and – plug & play sourcing integration Utilising the growth of existing customers by matching their increased demand for our products 11
HY 2019 Highlights 12
HY 2019 – Financial Highlights ▪ 17.1% to € 898.3 M (15.1% at constant currency) Overall turnover growth ▪ Growth of 7.4% (5.4% at constant currency) Organic turnover growth ▪ Of this growth, 0.9% stems from FragranceNet.com Business segment ▪ HTG +28.5% | B&S +0.5% | Retail +1.6% contribution ▪ EBITDA amounted to € 52.9 M EBITDA ▪ pre IFRS 16 EBITDA came in at € 48.1 M ▪ Solvency close to 34% Financial position ▪ Net debt / EBITDA at 2.9 13
Key developments HY 2019 Investments on Group level Performance on Segment level ▪ Expansion of robotised warehouse in ▪ Growth driven by Health & Beauty value retail and e-commerce markets HTG segment and combined with ▪ Strengthened international positions, intensified relationships in value FNET technology to further boost retail and increased focus on the online platform business Health & Beauty category ▪ Synergies from combined sourcing in Health & Beauty category ▪ Logistics operations in B&S Segment on track ▪ Maritime market circumstances remain unfavourable ▪ Acquisition Lagaay Medical Group in ▪ Opportunities identified in remote markets B&S Segment enhances single source ▪ Performance in B&S Segment as expected given market conditions and supply concept additional costs in logistics (as communicated) with clear performance improvement in B&S Segment trend noticeable in H2 ▪ Acquisition Rotterdam & Weeze ▪ Lagaay integration into the B&S Segment in preparation Airport in Retail Segment strengthens regional store portfolio ▪ Retail segment performed as expected 14
Key figures HY 2019 € million (unless otherwise Δ (%) HY 2019 HY 2019 HY 2018 Commentary indicated) reported pre IFRS 16 reported reported ▪ Profit or loss account Turnover grew 17.1%, gross profit grew 19.9%, margin was Turnover 898.3 898.3 766.9 17.1% 14.1% Gross profit 126.3 126.3 108.5 19.9% EBITDA 52.9 48.1 45.9 15.2% ▪ EBITDA grew 15.2% Depreciation & Amortisation 12.1 7.6 4.4 ▪ IFRS 16 positively impacted Profit before tax 35.1 35.5 38.4 (8.6%) EBITDA by € 4.8 M, logistical costs B&S Segment negatively impacted EBITDA ▪ FragranceNet.com straight-line amortisation of intangible fixed assets has a material impact on contribution to results in H1 from Fnet 15
HY 2019 – Segmental breakdown Commentary € million HY 2019 HY 2018 Change ▪ HTG overall growth mainly attributable to Health & Beauty Turnover 643.5 500.8 28.5% category: value retail, e- Gross profit 82.9 58.7 41.1% HTG EBITDA 40.4 30.8 31.4% commerce platforms and online EBITDA margin 6.3% 6.1% 0.2% B2C ▪ Organic growth of HTG was Turnover 221.3 220.3 0.5% 13.6% (12.1% on a constant Gross profit 27.2 31.3 -13.0% currency basis): strengthened B&S EBITDA 9.5 11.5 -17.1% international positions, intensified EBITDA margin 4.3% 5.2% -0.9% relationships in value retail and increased focus on online platform business Turnover 64.7 63.7 1.6% Gross profit 16.5 15.8 4.3% ▪ B&S EBITDA impacted by Retail EBITDA 4.2 4.1 0.6% additional € 4 M logistics costs EBITDA margin 6.4% 6.5% -0.1% (as communicated in CMD) ▪ Retail performed as expected 16
Overall turnover growth analysis Commentary ▪ The HTG segment is the main contributor to Group organic growth in H1 2019 ▪ The inclusion of the acquisition of FragranceNet.com contributed € 81.8 M of which € 6.9 M was organic growth stemming largely from combined sourcing advantages ▪ The development of the EUR/USD exchange rate had a positive effect of € 15.3 M on turnover growth 17
Financial Position 18
HY 2019 - Financial position € million (unless stated otherwise) HY 2019 HY 2018 Commentary ▪ Financial position within pre- Financial position determined objectives Solvency ratio 33.7% 37.3% ▪ Balance sheet and as such Net debt 329.8 277.0 solvency impacted by € 87 M Net debt / EBITDA intangibles following Fnet 2.9* 2.7 acquisition Inventory in days 98 103 ▪ Net debt increase mainly Working capital in days 100 107 resulting from Fnet acquisition and associated consolidation, and the investment in working capital ▪ Increase in working capital: mainly related to inventory supporting our growth expectations; working capital in days improved *Taking into account the LTM EBITDA of FragranceNet.com 19
Net debt development HY 2019 Commentary ▪ HY 18 negative cash flow from operating activities: € 48.2 M ▪ HY 19 only € 0.4 M. Investment in inventory in 2019 set-of by cash inflow from late Q4 2018 sales as indicated at FY18 ▪ Dividend represents payment to minority shareholders FragranceNet.com ▪ Investing activities mainly investment in software € 3.0 M and logistical infrastructure € 7.1M ▪ Net debt excluding IFRS 16 20
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