Roadshow presentation Q4_for print - Boozt Group

Roadshow presentation

Q4 2017February/March 2018

We passed the 2 billion mark

2014 2015 2016 2017

(13.1)%

(0.1)%

2.1%

Adj. EBIT margin

Net revenue, SEK million

+57.0% CAGR

2.4%

521817

1,396

2,016

Warehouse moveListing on Nasdaq Stockholm

Launch of physical storesSigning and launch of several key brands

+44.4%

Key highlights Q4

• High new customer intake in the quarter

• Continued strong revenue growth, 37.8% in the quarter

• Satisfying adjusted EBIT margin of 8.1% in the quarter

• Signing of key brands

• Seamless build out of AutoStore phase 2

Results update

Adjusted EBIT - Group

Adjusted EBIT in SEK million

Net revenue - Group

Net revenue in SEK million

467,3

644,2

Q4 2016 Q4 2017

1 396,4

2 016,4

FY 2016 FY 2017

447,2

626,4

Q4 2016 Q4 2017

+40.1%

1 303,0

FY 2016 FY 2017

Net revenue – Boozt.com

Net revenue in SEK million

48,3 52,3

Q4 2016 Q4 2017

Margin 8.1%

Margin 10.3%

29,5

48,2

FY 2016 FY 2017

Margin 2.4%

Margin 2.1%

Adjusted EBIT – Boozt.com

Adjusted EBIT in SEK million

47,6 52,0

Q4 2016 Q4 2017

Margin 10.6%

Margin8.3%

16,5

44,1

FY 2016 FY 2017

Margin 1.3%

Margin 2.3%

+49.4%+44.4%

+37.8%

Boozt.comGroup

1,946.2

KPI highlights

777 787

FY 2016 FY 2017

822 810

Q4 2016 Q4 2017

820

1 057

FY 2016 FY 2017

AOV Q4

True frequency Q4Active customers

9,19,2

Dec 2016 Dec 2017

6567

Q4 2016 Q4 2017

Customer satisfaction Q4 No. of orders per active customer

True frequency AOV (SEK)

AOV (SEK)

Order frequency

AOV FY

5,26,3

Q4 2016 Q4 2017

+21.1%+28.9%

-1.5%

+1.4%

2,152,37

FY 2016 YTD 2017

+10.3%

Trustpilot and NPS score

No. of active customers (000)

Boozt.com

Trustpilot NPS

Black Friday

• 140 per cent revenue growth compared to Black Friday 2016

• More than 25,000 new customers on Boozt.com during the Black Friday weekend

• All Black Friday orders delivered within 1-2 days, with high customer satisfaction

• Our operations and systems was tested to maximum – with satisfying results

• Good profitability for the weekend

Record-breaking weekend

Still early days for beauty

Physical stores

Raising awareness

• Partnering with L’Oréal Paris to showcase our beauty department on “Guldbaggen”, the Swedish movie awards gala.

• Promotional activities by exploring synergies between apparel and beauty

Strengthening Boozt as beauty destination Q4 was promising

• Still low-digit single numbers. Index Q3 2017: 100

Index Q4 2017: 335• Low returns, as expected• Adding sub-categories, brands and

features continuously• 65 per cent is mixed baskets

Performance

Beauty by Boozt.com Flagship store

• Flagship store expects to open in summer 2018• Significantly adjusted concept, adding new brands and

services

adidas and Reebok will be sold on Boozt.com as from late summer 2018

The newly signed agreement kicks off our investment in making Boozt a confident sport and athleisure destination

adidas and Reebok

adidas Boost collection, borrowed from adidas.com

FINANCIAL UPDATE FOURTH QUARTER

AND FULL YEAR 2017

Q4 2016 Q4 2017

KPI development

Investments fixed assets Q4Revenue growth Q4

23.6

162.7

FY 2016 FY 2017

1,396.4

2,016.4

FY 2016 FY 2017

7.8

44.0

Q4 2016 Q4 2017

Gross margin Q4

Gross margin (%)

Gross margin FY

Gross margin (%)

45,2% 43,1%

Q4 2016 Q4 2017

45,1% 42,7%

FY 2016 FY 2017

-2.1ppt

-2.4ppt +139.0

+36.2

Investments fixed assets FY

Net revenue in SEK million

+37.8%

SEK million

SEK million

Revenue growth FY

Net revenue in SEK million

Group

+44.4%

467.3

644.2

30,7

49,1

FY 2016 FY 2017

Net revenue Q4 (SEK million)

7,914,2

Q4 2016 Q4 2017

12,2

3,5

Q4 2016 Q4 2017

Net revenue by segment

1 303,0

1 946,2

FY 2016 FY 2017

447,2626,4

Q4 2016 Q4 2017

Net revenue Q4 (SEK million) Net revenue Q4 (SEK million)

Net revenue YTD (SEK million) Net revenue YTD (SEK million)Net revenue YTD (SEK million)

+40.1%+80.7% -71.2%

+59.8%

+49.4%

62,6

21,0

FY 2016 FY 2017

-66.4%

Boozt.com Booztlet.com Other

16,5

44,1

FY 2016 FY 2017

Adjusted EBIT by segment

47,6 52,0

Q4 2016 Q4 2017

Adjusted EBIT Q4 (SEK million) Adjusted EBIT Q4 (SEK million) Adjusted EBIT Q4 (SEK million)

0,6 1,2

Q4 2016 Q4 2017

0,1 -0,9

Q4 2016 Q4 2017

Adjusted EBIT YTD (SEK million) Adjusted EBIT YTD (SEK million)Adjusted EBIT YTD (SEK million)

4,2 5,1

FY 2016 FY 2017

8,8

FY 2016 FY 2017

Margin -0.6% Margin

–25.1%

Margin –4.3%

Margin 14.1%

Margin 7.3%

Margin 8.6%

Margin 13.7%

Margin 10.4%

Margin2.3%

Margin 1.3%

Margin 8.3%

Margin 10.6%

Boozt.com Booztlet.com Other

Q4 2016 Q4 2017

Cost ratio development

45.2 43.1

8.1

Q4 2017

Gross margin

Marketing cost ratio

Depreciation cost ratio

Adjusted fulfilment cost ratio

Adjusted admin & other cost ratio*

Adjusted EBIT margin

(8.5)

(1.0)

10.3

(14.1)

(11.3)

(12.7)

(11.1)

(9.6)

(1.5)

Share of net revenue, %

45.1

(11.3)

(0.9)

2.1

(16.1)

(14.7)

Q4 2016 FY 2016Change

(2.1 pp)

1.4 pp

0.1 pp

(1.0 pp)

(0.5 pp)

2.2 pp

Change

(2.4 pp)

1.5 pp

1.7 pp

(0.0 pp)

(0.6 pp)

(0.2 pp)

42.7

2.4

(14.5)

(13.0)

(11.3)

(1.5)

FY 2017

*whereof cost of personnel (5.5) (5.8) (0.3 pp) (6.4) 0.1 pp(6.3)

Outlook

25-30%medium term

>6%medium term

For 2018 the the Group expects a net revenue growth above 30%.The adjusted EBIT margin is expected to improve slightly compared to 2017.

• Boozt targets annual net revenue growth in the range of 25-30% in the medium term

• Boozt targets an adjusted EBIT margin exceeding 6% in the medium term• Boozt expects to increase the adjusted EBIT

margin annually as the cost base is further leveraged by net revenue growth

Net revenue growth

Adjusted EBIT margin

Medium term (3-5 years post IPO) targets remain unchanged

COMPANY OVERVIEW

15

16

Our vision is to become the leading player in Nordic fashion e-commerce

Our mission is to deliver an outstanding online fashion shopping experience with unrivaled customer service

WE DELIVER FASHION

5 middle aged men selling fashion…

Jesper Brøndum

CTO

Allan Junge-Jensen

CFO

Hermann Haraldsson

CEO

Niels Hemmingsen

COO

Peter G. Jørgensen

CMO

Sept 2017: SEK 170m+

BUILDING NORDIC SCALE

• Nordic roll-out

• Assortment expansion

• Increase share of wallet and number of returning customers

• Accelerate growth

2015 - 2016

ONLINE LEADERSHIP

• Strive towards Nordic online market leadership

• Leverage the technology platform

• Invest in infrastructure

• Maintain disciplined portfolio management

2017 -

Dec 2017

SEK 191m(transactional net revenue)

2011 - 2013

LAUNCH OF BOOZT.COM

• New strategy launched and multi-brand shop opened

• On-boarding of brands

• Creation of an integrated tech platform

• Marketing focus in Denmark

Aug 2011

SEK 700K (transactional net revenue)

EXPANSION

• On-boarding of brands

• Geographic expansion

• Marketing focus in Denmark, Sweden and Finland

• Securing funding

2014 - 2015

Embarking on an exciting journey

Well invested, data driven operating platform

Purpose-built infrastructure enables full control over the customer journey

Ads

TV

Emails

Marketing

AffiliateSoc. media

Filter + search

Salesadvice

Fraudcheck

Paymentvalidation

Discounts

Sales

Return +refund

Openpackage

Review

RatingPickup +delivery

Fulfilment

Customer service

Chat Exchange

Phone

Emails Soc. mediaThe solar system

The halo

Central and automatedwarehouse in southern Sweden

1) Estimated capacity based on 43,500 m2 in total area is ~500,000 bins and ~500 picking robots. 2) Assuming a constant AOV. Source: Company data.

450,000+ SKU locations

Capacity of

3,000,000+items

Based on AutoStore solution

4 days from product arrival to in webstore

Returns being refunded

within

24 hours

>2,500orders per

hour in handling capacity

The new warehouse in operational since the end of March 2017Next day delivery to several Nordic areas

Custom-built to deliver convenience and designed for >6x net revenue2)

• 180,000 bins1)

• 151 picking robots1)

• ~90% of products to be handled in the “grid”

Competitive offering to modern Nordic fashion followers

One destination for fashion

Curated, contemporary and relevant selection

Carefully selected brands with Nordic appealAttractive customer characteristics

Focus on target groups where convenience is key

Diversified customer base with attractive features

~70% ~85% ~55%Women Live together Have kids

Customers aged 25-54 represent >75% of net revenue

Well positioned to capture larger share of the Nordic online apparel market

21Entry brandsPremium brandsCommercial

Attractive position in a market wherescale matters

Prod

uct s

egm

ent f

ocus

Prem

ium

Com

mer

cia

lEn

try p

rice

Catch-all Curated

Brand strategy

Distinct position based on a curated Nordic selection…

Favorable unit economics

Illustrative Nordic market landscape

Boozt’s positioning delivers a high AOV

AOV incl. VAT in SEK (Accumulated Q1- Q4 2017)

Selectively active in the Nordic region

787 605

VAT

3) 4)

+62.6%

Adjusted fulfilment cost ratios, in % of net revenue (Accumulated Q1- Q4 2017)

14,5%26,3%

-10.3 ppt

5)

1) As defined by Euromonitor International. Boozt CAGR based on net revenue excluding VAT (based on Company data). 2) Zalando, H&M, Nelly, Ellos and Stylepit. 3) Boozt.com’s reported AOV excludes VAT. 4) Based on average basket size for accumulated period Q1-Q3 2017 of EUR 62.0 and converted based on EUR/SEK 9.57. Source: Zalando Q3, quarterly statement Zalando has not reported its Q4 results as per Boozt reporting date. 5)Based on reported figures in Zalando Q3, quarterly statement. Zalando has not reported its Q4 results as per Boozt reporting date.

24

THE MARKET

Apparel is a large market in the Nordics

Note: Apparel retail market is defined as the aggregation of the clothing and footwear market (including sports). The market data covers retail sales of apparel through both store-based retailers and non-store retailers. It excludes black market sales (i.e. untaxed, generated within informal retailing) and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded. All data from Euromonitor International used in this section is based on retail sales prices (including VAT), expressed in nominal terms and assumes fixed currency rates against SEK of 9.44 (EUR), 1.07 (NOK), 1.27 (DKK), 10.98 (GPB) and 8.88 (USD). Source: Euromonitor International Beauty and Personal Care 2016 edition, Consumer Electronics 2017 edition, Consumer Appliances 2017 edition, Consumer Health 2017 edition, Apparel and Footwear 2017 edition. Euromonitor doesn’t research Apparel, Consumer Electronics and Consumer Appliances in Finland, therefore to estimate the total Nordic market, management estimates for Finland used as follows: Apparel: SEK 35 billion; Consumer electronics: SEK 35 billion and; Consumer appliances: SEK 6 billion.

33 44

6 11 4

242

100

56 4434

Apparel ConsumerElectronics

Beauty andPersonal Care

ConsumerAppliances

ConsumerHealth

Nordic market size (SEKbn)

9 700 9 2008 600

5 300

US Nordics UK Europe

Total apparel spending per capita (2016 in SEK, rounded to the nearest hundred)

Apparel is one of the largest consumer categories… … driven by high spend per capita

Online

Total

Attractive market opportunity in the Nordic apparel market

Source: Euromonitor International Beauty and Personal Care 2016 edition, Consumer Electronics 2017 edition, Consumer Appliances 2017 edition, Consumer Health 2017 edition, Apparel and Footwear 2017 edition Euromonitor doesn’t research Apparel, Consumer Electronics and Consumer Appliances in Finland, therefore to estimate the total Nordic market, management estimates for Finland used as follows: Apparel: SEK 35 billion; Consumer electronics: SEK 35 billion and; Consumer appliances: SEK 6 billion; Books is based on data for Sweden including e-books, taken from Boken 2017 (Svenska Bokhandlareföreningen and Svenska Förläggareföreningen).

50%

44%

26%

13%11% 10%

Books Consumerelectronics

Consumerappliances

Apparel Consumerhealth

Beauty andpersonal care

Online penetration by category in the Nordics (2016)

~60%

Nordic online apparel

Est. market shares (2016)

Nordic online fashion penetration versus other categories The market remains fragmented

Online penetration still growing strongly across all verticals

Strong growth potential in online fashion in the Nordics

Total market

SEK 242bn

SEK ~109bn

SEK ~50bn

Source: Company data and Euromonitor.

Nordic apparel market (2016)

Penetration AND consolidation

Online penetration levels at various stages hint to the market potential

SEK ~30bn

TODAY@ 13% online penetration

@ 20% online penetration

2027?@ 45% online penetration

Market opportunity favouring a few

Penetration AND consolidation

Logistic is key to succeed and gain

market share

Brand loyalty is important

Importance of scalability

Penetration

+ consolidation

= large growth opportunity

29

OUR GROWTH STRATEGY

Key success factors in Nordic online fashion

• Relevant and curated selection

• Personalised yet”power to the people”

• Nudging and not forcing

• Pay THE (right) price

• Seamless user experience across platforms

• Convenient delivery and return options

• Easy access customer care

• Fast free deliveries

• Fast free returns

EASE

SPEED

PRICERELEVANCE

Relevance through sophisticateduse of BIG data, AI and ML

Social data Distribution data Boozt solar system Payment data Market data

Data lake

Data quantification

Data analysis Data model

§ Customer segmentation

§ Brand classification

§ Return patterns

§ Prediction of next purchase

§ Personalized product recommendation

§ Customer service categorisation

32

SPEED THROUGH REDUCING LEADTIME

from order to delivery

A step change in deliveryproposition

1-2 days

Next day

Same day

Next day

Same day

1-2 days

Serving 90% of the Nordic region with 100% of the assortment within same or next day

Q1 2018Deliveryreach

Current share oforders

99%

Population(million)

18.8

25.0

0%

80%

95%

30%

90%

3.5 100%

100%

100%

Range

of assortment

of assortment

of assortment

Cohort behaviour suggests ”annuity-like-CLV”

NEW

Cohorts are strong and loyalty is built fast – loyal customers expand their transactions with us

Expected “as is” 2018 revenue from 2017 cohort = 100%

0

500

1000

1500

2000

2014 2015 2016 2017Loyal customer Converting to loyal

Total Net. Sales (excl. VAT)

Growing as fast as unit economicsmake sense…

Contribution margin development

First year Year + 1 Year + 2 Year + 3 Year + 4 Year + 5

Initial negative contribution from new customers…

Accumulated CLV for Boozt.com

First year Year + 1 Year + 2 Year + 3 Year + 4 Year + 5

Customer lifetime value(CLV)

…followed by steep accumulation in live time value

CLV is defined as gross profit less fulfillment & distribution and marketing costs attributable to a particular customer cohort.

APPENDIX

Reconciliation of EBITDA and EBIT

SEK million Q4 2017 Q4 2016

EBITDA 60.9 50.3EBITDA margin 9.5% 10.8%

D&A (9.9) (4.5)Operating profit/loss (EBIT) 51.1 45.8EBIT margin 7.9% 9.8%

Share-based compensation (social charges) 0.7 2.0Share based compensation 0.6 -IPO-related costs - 0.5

Adjusted EBIT 52.3 48.3Adjusted EBIT margin 8.1% 10.3%

APPENDIX

Selected KPIs for the Group(SEK million unless otherwise indicated) Q4 2017 Q4 2016

GROUPNet revenue 644.2 467.3

Gross margin (%) 43.1% 45.2%Fulfilment cost ratio (%) (12.7%) (14.1%)Marketing cost ratio (%) (11.1%) (11.3%)Admin & other cost ratio (%) (9.8%) (9.0%)Depreciation (%) (1.5%) (1.0%)

Adjusted fulfilment cost ratio (%) (12.7%) (14.1%)Adjusted admin & other cost ratio (%) (9.6%) (8.5%)

EBIT 51.1 45.8EBIT margin (%) 7.9% 9.8%Adjusted EBIT 52.3 48.3Adjusted EBIT margin (%) 8.1% 10.3Adjusted EBITDA 62.2 52.8Adjusted EBITDA margin (%) 9.7% 11.3%

Cash flow from operations 81.6 68.3Net working capital 200.4 94.6Investments -44.0 -7.8

Net debt /- net cash -328.5 -209.8Equity / asset ratio 57.1% 46.0%Number of employees end of period 224 192

APPENDIX

Selected KPIs by segment(SEK million unless otherwise indicated) Q4 2017 Q4 2016

Boozt.comNet revenue 626.4 447.2

EBIT 50.8 45.7EBIT margin (%) 8.1% 10.2%Adjusted EBIT 52.0 47.6Adjusted EBIT margin (%) 8.3% 10.6%

Site visits (000) 26,966 18,798Number of orders (000) 786 558Conversion rate (%) 2.91% 2.97%True frequency 6.3 5.2Average order value (SEK) 810 822Active customers (000) 1,057 820Number of orders per active customer 2,.37 2.15

Booztlet.comNet revenue 14.2 7.9

EBIT 1.2 0.5EBIT margin (%) 8.3% 6.5%Adjusted EBIT 1.2 0.6Adjusted EBIT margin (%) 8.6% 7.3%

OtherNet revenue 3.5 12.2

EBIT (0.9) (0.5)EBIT margin (%) (25.1%) (3.8%)Adjusted EBIT (0.9) 0.1Adjusted EBIT margin (%) (25.1%) 0.6%

APPENDIX

Financial position(SEK million unless otherwise indicated) Dec 31, 2017 Dec 31, 2016

ASSETSNon current assetsIntangible assetsWeb platform 19.5 15.0

Tangible assetsMachinery and equipment 155.1 17.6

Deposits 11.8 9.8Deferred tax assets 92.5 36.8Total non-current assets 278.9 79.2

Current assetsInventories 571.6 388.8Accounts receivables 34.0 19.6Other receivables 38.2 49.7Current tax assets 0.5 0.4Prepaid expenses and accrued income 26.9 39.7Derivatives 4.4 -Cash and cash equivalent 429.7 221.8Total current assets 1,105.1 720.1

TOTAL ASSETS 1,384.0 799.3

APPENDIX

Financial position(SEK million unless otherwise indicated) Dec 31, 2017 Dec 31, 2016

EQUITY AND LIABILITIES

EquityShare capital 4.7 3.9 Other capital contributions 1,124.3 689.2 Reserves 0.1 -Retained earnings including profit for the year -338.3 -325.8 Total equity 790.8 367.3

Non-current liabilitiesInterest bearing liabilities 70.6 8.6Other provisions 21.1 16.3Total non-current liabilities 91.7 24.9

Current liabilitiesInterest bearing liabilities 30.6 3.4Accounts payables 282.7 268.8Other liabilities 62.0 34.6Derivatives financial instruments 0.3 -Accrued expenses and prepaid income 126.0 100.2Total current liabilities 501.5 407.1

TOTAL EQUITY AND LIABILITIES 1,384.0 799.3

APPENDIX

Disclaimer

The Company’s financial targets set forth above constitute forward-looking information that is subject to considerableuncertainty. The financial targets are based upon a number of assumptions relating to, among others, the development ofthe Company’s industry, business, results of operations and financial condition. Company’s business, results of operationsand financial condition, and the development of the industry and the macroeconomic environment in which theCompany operates, may differ materially from, and be more negative than, those assumed by the Company’s whenpreparing the financial targets set out above. As a result, the Company’s ability to reach these financial targets is subjectto uncertainties and contingencies, some of which are beyond its control, and no assurance can be given that theCompany will be able to reach these targets or that the Company’s financial condition or results of operations will not bematerially different from these financial targets.