Answear com S A : Investor presentation - Q2 2021 results

Answear.com S.A.

Investor presentation - Q2 2021 results

SEPTEMBER 2021

Summary H1 2021

Accelerating growth, further improving financial performance and operating ratios.

Revenue growth

56%	Revenue in H1 2021
amounted to PLN
	269.6m

Gross margin increase	Dynamic EBITDA growth
	compared to 40.7%	PLN
44.9%	in 1H20, increase in margin	versus PLN 12.2m in
70.6m in 1H20 to PLN	1H2020
	on sales by value from PLN
	121.1m in 1H21	17.6m

Large customer base

1,3m	unique active customers
across 8 markets in CEE. An

increase of 24% y-o-y

Logistic costs optimisation

15.0% 16.7% in 1H20 Ratio of logistics

costs to on-line sales

Continuously growing number of orders

1,6m	Dynamic y-o-y
growth of 35%

Effectiveness of marketing activities

11.1% in 1H2020.

15.1% Marketing input costs in relation to on-line sales

Increased value of average order

PLN	PLN 222 in 1H2020.
Increasing the value of
	the average order has

259	a positive impact on
	business profitability
Growth in SKUs
>116k	Steadily increasing
	width of offer on
	Answear website

2

Entry to the Greek market

Consistent building of e-fashion leader in CEE region

The Greek market

▪	One of the largest markets in the CEE region
▪	Relatively wealthy with booming e-commerce and relatively little
	competition
▪	High awareness of premium brands, which will be reflected in the

The fastest delivery in CEE. "Customer-centrism"

24h

Cracow

value of average baskets

1-2 days

2-5 days

▪	Natural logistical advantage over distant Western European countries
	results in limited presence of major European competitors
▪	In 2023 Answear aims to achieve EBITDA profitability in this market

3

1-2 days

1-2 days

2-3 days

2-5 days

3-6 days

Key events in Q2 2021

Moving to a new photographic studio

• Moving to a 4 times bigger studio
• Making product films
• An expanding dedicated team of photographers, graphic designers and stylists

Answear.com (PL) shop migrations to new platform

• A new independent platform, high UX, speed and an improved shopping process
• Refined product search system
• New look and layout based on the so-called Single Page Application

4

Celebrating 10 years of

Answear.com

• Special limited collections for Answear.com customers, prepared by major brands
• Limited editions of Answear.LAB in cooperation with Paulina
  Krupińska
• Consistent achievement of IPO issue objectives

Extension of a 4-storey mezzanine

• Extension of the multi-level mezzanine floor in the central warehouse, increasing the goods storage area by a further 10,000 m².
• Installation work completed with ready-to-use acceptance received on 21 September this year.

Development of the product range

Accelerating growth, optimising the offer to maximise margins and sales profitability

Increasing the range of offerings

	#SKUs on offer (in thousands)	including Answear LAB
	87	116	>9k
77	85

2019 2020 H1'20 H1'21

Breakdown by gender

Women Men Children

6%		6%		6%		7%
31%	31%	27%	30%
63%	63%	67%	63%

Concentration on Premium segment

Premium brands Mid-market range Budget brands

												▪	Answear dynamically increases its product
		26%	28%	23%					offer. In 2-3 years perspective, the offer is to
30%					increase by about 500 brands and 150
29%	27%	30%	26%					thousand SKU
				% share of price
						51%		categories
41%	47%	42%
												▪	Focus on offering more expensive premium
2019	2020		H1'20		H1'21
						products and gradual replacement of cheaper
Dominant clothing											and weaker brands by Answear LAB
					Clothing			Footwear		Accessories
												▪	Dominant share of products from women's
													collection in the company's sales structure
19%	21%	18%	19%
32%	27%	31%	27%				▪	Footwear and accessories in addition to the
									% share		key clothing segment.
50%	52%	51%	54%	product category

2019

2020

H1'20

H1'21

2019

2020

H1'20

H1'21

5