Answear com S A : investor presentation FY 2021

Today's hosts

Krzysztof Bajołek, CEO and Jacek Dziaduś, CFO

Management

•  Founder and CEO of numerous fashion companies including Artman (listed on the WSE in 2004, today has over 500 offline stores across Poland) - sold in 2008 to the Polish clothing giant LPP.

•  Responsible for Company's growth strategy

  Krzysztof Bajołek

  Prezes Zarządu

  Founder and co-owner

•  27 years of professional experience

•  Group CFO, joined Answear in 3Q 2020

•  Worked in furniture industry at Grupa Nowy Styl for the past 10 years, where he served as controlling and accounting director. Prior to that worked at KPMG Audit Polska

  Jacek Dziaduś

  CFO

•  Responsible for finances and controlling at the company

•  17 years of professional experience

ExperienceExperience

Summary 2021

Leading e-fashion platform in CEE region, operating on 10 markets and rapidly expanding the scale of operations

Revenue growth

67%

Revenues in 2021 amounted to PLN 683,5 million, and online sales of PLN 721,2 million

Growth in AOV

18,1%

PLN 280 in 2021 vs. PLN 237 in 2020. Positive impact on business profitability.

Gross margin

43%

Percentage margin on sales up from 41, 6% in 2020.

Value margin increased by 73% to PLN 294,1m in 2021 from PLN 170,3m in 2020

Increase in conversion rate

2,32%

in 2021 vs. 1,84% in 2020

Increase by 0,48 pp

Logistic costs optimisation

13,6%

15,3% in 2020 Ratio of logistics costs to on-line sales

Effectiveness of marketing activities

14,9%

12,0% in 2020 Marketing costs in relation to online sales

Explanation:

(1) Adjusted EBITDA represents earnings before interests and taxes excluding incentive plan costs (which are a non-cash expense) and plus depreciation and amortization

Business Model & Value chain

"Client-centricity" combined with high operational efficiency and cost minimization, resulting in high levels of customer satisfaction and potential for high business profitability.

•  Knowledge of TG customers' needs and tastes, and of local market trends

•  Well-defined target group

• • Carefully selected brands and products, matching the portfolio, from the most reputable and profitable suppliers

• • Own labels - higher margins, unique products, wide, constantly developed collection of clothes

• • Local, most effective marketing activities tailored to TG and to specific markets

•  In-house IT team

•  Modern platform with high UX

•  Dedicated mobile apps in all markets.

•  Potential to scale the business without significant cost increases

•  Fastest delivery in the region

•  At the lowest logistics cost

•  High level of customer satisfaction

•  Limited carbon footprint - one package delivery

•  Attractive loyalty program to increase frequency of purchases

•  Local marketing teams in each market

•  Local CS - customer service in local languages

Efficient operating model

Customer Focus - speed of delivery - convenience - minimizing costs - reducing carbon footprint

Strategic location of the central warehouse

Local logistics hubs

Local couriers

Customer

•  All products stored and shipped from one location

•  Guaranteed delivery of every product ordered

•  Fastest delivery times in CEE

•  Products shipped and returned always in 1 package

•  No unnecessary intermediaries, by the shortest route

•  Control over every stage of the purchasing process

•  Satisfied, returning customers

•  High-cost effectiveness

•  No unprofitable orders

•  Simple, effective inventory management

•  Environmental protection - the lowest possible carbon footprint