Global Blue : 15 Dec 2020 - H1 Financial Statements - Marketing PresentationUndefined

Sep-20 H1

Financial

Results

Presentation

December 2020

Disclaimer

Forward Looking Statements. This presentation (this "Presentation") contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Global Blue Group Holding AG's ("Global Blue", "we" or "us") or its management's expectations, hopes, beliefs, intentions or strategies regarding the future. The words "anticipate", "believe", "continue", "could", "estimate", "expect", "intends", "may", "might", "plan", "possible", "potential", "predict", "project", "should", "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward looking statements are based Global Blue's current expectations and beliefs concerning future developments and their potential effects on Global Blue. There can be no assurance that the future developments affecting Global Blue will be those that we have anticipated. These forward- looking statements involve a number of risks, uncertainties (some of which are beyond Global Blue's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These include commercial expectations and other external factors, including political, legal, fiscal, market and economic conditions and factors affecting travel and traveller shopping, including the global COVID-19 pandemic and applicable legislation, regulations and rules (including, but not limited to, accounting policies and accounting treatments), movements in foreign exchange rates and other factors described under "Risk Factors" in Global Blue's prospectus dated October 13, 2020 filed with the Securities and Exchange Commission (the "SEC") pursuant to Rule 424(b) of the Securities Act of 1933, as amended, on October 15, 2020, and in other reports we file from time to time with the SEC, all of which are difficult to predict and are beyond Global Blue's control. Except as required by law, Global Blue is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Intellectual Property. All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and Global Blue's use thereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, copyrights, logos and other intellectual property. Solely for convenience, trademarks and trade names referred to in this presentation may appear with the ® or ™ symbols, but such references are not intended to indicate, in any way, that such names and logos are trademarks or registered trademarks of Global Blue.

Industry and Market Data. This Presentation contains statistical data, estimates and forecasts that have been provided by Global Blue and/or are based on independent industry publications or other publicly available information, as well as other information based on Global Blue's internal sources. This information involves many assumptions and limitations and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of such data, including those contained in these industry publications and other publicly available information. Accordingly, none of Global Blue nor its affiliates and advisors makes any representations as to the accuracy or completeness of these data. Certain amounts described herein have been expressed in U.S. dollars for convenience and, when expressed in U.S. dollars in the future, such amounts may be different from those set forth herein.

Financial Information. The historic financial information respecting Global Blue contained in this Presentation has been taken from or prepared based on the historical audited financial statements of Global Blue, which have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the International Accounting Standards Board ("IASB"), which are not materially different from IFRS as issued by the EU.

Non-IFRSFinancial Measures. This presentation includes certain financial measures not prepared in accordance with IFRS, which constitute "non-IFRS financial measures" as defined by the rules of the U.S. Securities and Exchange Commission. These non-IFRS financial measures include: Adjusted Operating Expenses, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Depreciation & Amortization, Adjusted EBIT, Adjusted Profit Before Tax, Adjusted Income Tax Expense, Adjusted Net Income, Adjusted Net Income (Group Share), Net Financial Debt, Net Leverage Ratio.

Global Blue has included these non-IFRS financial measures because it believes they provide an additional tool for investors to use in evaluating the financial performance and prospects of Global Blue. These non-IFRS financial measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with IFRS. In addition, these non-IFRS financial measures may differ from non-IFRS financial measures with comparable names used by other companies. Note however, that to the extent forward-lookingnon-IFRS financial measures are provided herein, they are not reconciled to comparable historic IFRS measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation.

2

Today's Presenters

Jacques STERN

President and

Chief Executive Officer

Joined Global Blue in 2015 ~30 years experience École Supérieure de Commerce de Lille

2010 - 2015	Chairman and CEO
1992 - 2010	Various positions
	including CFO and Deputy CEO
1988 - 1992	Auditor

Loïc JENOUVRIER

Chief Financial Officer

Joined Global Blue in 2015 ~25 years experience

École Supérieure de Commerce d'Angers

2009 - 2015 CFO

2004 - 2009 CFO and Member of Management Board

1990 - 2004 Various positions

including CFO of Accor Casino

3

AGENDA

	H1
H1	STRATEGIC	RECOVERY
FINANCIAL	INITIATIVES AND
SCENARIO
PERFORMANCE	REGULATORY

UPDATE

4

AGENDA

	H1
H1	STRATEGIC	RECOVERY
FINANCIAL	INITIATIVES AND
SCENARIO
PERFORMANCE	REGULATORY

UPDATE

5

H1 FINANCIAL PERFORMANCE

Global Blue's financial year ends on March 31st.

This report focuses on the half year performance, from April 1st to September 30th, 2020.

#1

#2

#3

COVID-19 has SIGNIFICANTLY DISRUPTED the Travel Retail industry,

leading to a -91% drop in Global Blue's revenues in H1 2020/21.

Global Blue Management have implemented a WIDE-RANGINGSAVINGS PROGRAM to mitigate the revenue decrease.

The Fixed Adjusted Operating Expenses have been reduced by -54%IN H1.

Total liquidity stands at €332M, consisting of €250M cash and €82M additional liquidity.

The current liquidity level implies that FIXED EXPENDITURES ARE COVERED WELL INTO CALENDAR YEAR 2022.

6

Note: Adjusted Operating Expenses is a Non-IFRS Financial Measure, see the appendix for a reconciliation to the nearest IFRS financial measure

Adjusted P&L

Half Year, €M		H1 2019/20A	H1 2020/21A		M€
Total Revenue		20.0
	227.7		(207.7)
Adjusted Operating Expenses		(126.4)	(39.5)		86.9
Adjusted EBITDA		101.3	(19.5)		(120.7)
Adjusted Depreciation & Amortization		(17.7)	(21.2)		(3.5)
Adjusted EBIT		83.6	(40.6)		(124.2)
Net Finance costs		(16.2)	(11.8)		4.4
Adjusted Profit Before Tax		67.4	(52.4)		(119.8)
Adjusted Income Tax Expense		(16.6)	8.2		24.8
Adjusted Net Income		50.8	(44.2)		(95.0)
Non controlling interests		(3.8)	1.1		4.8
Adjusted Net Income Group Share		47.1	(43.1)		(90.2)

Note: Adjusted EBITDA, Adjusted Depreciation & Amortization, Adjusted EBIT, Adjusted Profit Before Tax, Adjusted Income Tax Expense, Adjusted Net Income, Adjusted Net Income Group Share are Non-IFRS Financial	7
Measures, see the appendix for a reconciliation to the nearest IFRS financial measures

PHASE 1PHASE 2PHASE 3PHASE 4PHASE 5

COVID-19 has disrupted Tax Free Shopping, leading to 95% SIS & 93% Revenue decline in H1 2020/21 vs. H1 2019/20

ISSUED TAX FREE SPEND FOR H1 2020/21 AS A % OF H1 2019/20	ISSUED TAX FREE SPEND FOR H1 2020/21 AS A % OF H1 2019/20
	S. KOREA & JAPAN
APRIL - SEPTEMBER	APRIL - SEPTEMBER
EUROPE	APAC
8%	5%

SINGAPORE

ABOVE 15%

ABOVE 10%

ABOVE 5%

8

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

COVID-19 has disrupted the Added Value Payment Services,

leading to 79% SIS & 82% Revenue decline

in H1 2020/21 vs. H1 2019/20

POTENTIAL SIS FOR H1 2020/21 AS a % OF H1 2019/20	POTENTIAL SIS FOR H1 2020/21 AS a % OF H1 2019/20
	S. KOREA & JAPAN & TAIWAN
APRIL - SEPTEMBER	APRIL - SEPTEMBER
EUROPE	APAC
15%	10%

SINGAPORE

AUSTRALIA

ABOVE 15%

ABOVE 5%

ABOVE 1%

9

H1 Adjusted Operating Expenses

54% reduction of Fixed Adjusted Operating Expenses in H1 2020/21

(€M)

VARIABLE

FIXED non personnel

FIXED personnel

126.4

46.7

28.1

51.5

H1 2019/20

ADJUSTED OPERATING EXPENSES

(43.5)

VOLUME DRIVEN

REDUCTION

SHORT-TERM H1 €43M Savings

(-54%) utilizing

available

government support schemes & company savings program

(15.0)

(28.4)

(43.4)

SHORT TERM

ACTIONS

39.5

3.2

13.1

23.2

H1 2020/21

ADJUSTED OPERATING EXPENSES

10

H1 Adjusted Other Costs

ADJUSTED DEPRECIATION & AMORTIZATION

D&A increased by 20% primarily due to an increased investment in technology in the prior financial years, consistent with the management team's focus on digital innovation

(€M)

+3.5

21.2

17.7

NET FINANCE COSTS

Finance costs decreased by 27% mainly due to a lower leverage ratio leading to a better margin

(€M)

(4.4)

16.2

11.8

H1 2019/20A	H1 2020/21A	H1 2019/20A	H1 2020/21A	11

H1 Net Financial Debt Variance Analysis

Half Year, €M		H1 2019/20A	H1 2020/21A
Adjusted EBITDA		(19.5)
	101.3
Capital Expenditure		(14.4)	(11.0)
Adjusted EBITDA - Capex		86.8	(30.5)
Changes in working capital		(64.2)	25.4
Income tax (paid)/received		(14.7)	0.1
Interests paid		(12.1)	(9.6)
Lease Payments		(8.1)	(7.3)
Dividend paid to non-controlling interests		(4.8)	-
Translation difference and other		(2.8)	1.2
Net Financial Debt Variation		(19.9)	(20.7)
before Exceptional items
Exceptional Items (1)		(9.2)	(54.5)
Net Financial Debt Variation		(29.0)		(75.3)

(1) In H1 2020/21 Exceptional Items mainly include €(47.0)M related to the combination with FPAC and €(7.0)M related to business restructuring	12
Note : Net Financial Debt is a Non-IFRS Financial Measure, see the appendix for a reconciliation to the nearest IFRS financial measure

Net Financial Debt as of September 30th, 2020

Refinancing

On 28th August 2020, upon business combination with FPAC, Global Blue

refinanced its senior debt (€630 M) and revolving credit facility (€100M, of which € 99M was drawn as of September 30, 2020). Both have a maturity date of August 28, 2025.

Supplemental Liquidity Facility of $75M

In connection with the closing of the transaction, pre-transaction shareholders have agreed to grant Global Blue a $75M (c.€63M) Supplemental Liquidity Facility. This facility is available for 18-months and has a two-year maturity once drawn.

Covenant conditions

• No covenant test until September 30, 2021.
• Semi-annualtest on covenant starting on September 30, 2021 based on a leverage ratio test not to exceed 5.0x on September 30, 2021, step down progressively to 3.5x by maturity.
• Supplemental Liquidity Facility can be included in the EBITDA cure mechanism.
• The next 24 months savings (up to 25% of LTM EBITDA),
  as a result of restructuring can also be added to the EBITDA (Pro forma adjustment).
• Based on management's current projections, the Company is anticipating that it could be in breach of this covenant when required to report for the period ended September 30, 2021 and plans to engage in discussions with lenders in the near term.

€M	FY 2019/20A	H1 2020/21A		M€
Senior Debt	630.0	630.0	0,0
Revolving Credit Facility	0.0	99.0	99.0
Gross Financial Debt	630.0	729.0	99.0
Cash & Cash equivalents	(226.1)	(249.9)	(23.7)
Net Financial Debt	403.9	479.1		75.3
Adjusted EBITDA	170.7	50.0	-
(on a rolling 12-month basis)
Net Leverage Ratio	2.4x	9.6x	-

13

Liquidity Analysis as of September 30th, 2020

Current liquidity implies fixed expenditures to be covered well into calendar year 2022

H1 2020/21 MONTHLY AVERAGE FIXED EXPENDITURES - €10.7 M		LIQUIDITY BUILD - €332M (Sept 2020)

					Additional liquidity (1)
			€1.6M	€10.7M	€82M
		€1.2M
		Interests paid
	€1.8M	Lease
	Payments
€6.0M	Capital
Expenditure
					Cash
					€250M
Fixed				Total
Adjusted Operating				Fixed Expenditures
Expenses

(1) Committed Supplemental Liquidity Facility of $75M or €63M, uncommitted local credit lines of €18M, and RCF availability of €1M	14

AGENDA

H1	H1
STRATEGIC	RECOVERY
FINANCIAL	INITIATIVES AND
SCENARIO
PERFORMANCE	REGULATORY

UPDATE

15

H1 STRATEGIC INITIATIVES

#1	While implementing the H1 Savings Program, Global Blue has continued to invest
in the future through the following strategic initiatives:

▪ MOBILE FIRST Tax Free Shopping Solution enabling International Shoppers to experience an end-to-end mobile experience.

▪ CAMPAIGN MANAGER plug & play technology and communication solution allowing "extra refund" drive to store marketing campaign.

▪ CONSUMER DATA technology enabling Data Driven Advisory solution for retailers.

▪ Jointly developed Technology and Marketing solutions with ANT GROUP improving the shopping experience of Chinese International Shoppers.

#2	Following the UK Government's decision to ABOLISH THE UK TAX FREE SHOPPING SCHEME
from Jan 1st 2021, Global Blue & the Industry have actively lobbied to REVERSE THE DECISION.

16

Development of a Mobile 1st solution in H1 2020/21

Enhance the traveller and store staff experience with a paperless, 100% mobile and digital

experience, assisted step by step via Global Blue's Mobile Customer Care product

IN STORE				OUTSIDE STORE

	SPEED UP	KEEP SOCIAL		RESPECT	MAKE GEN-Z	INCREASE	BE MOBILE,
	STORE	DISTANCING		ENVIRONMENT		HAPPY	REFUND RATIO	AS YOUR
	ACTIVITIES							TRAVELLERS
								ARE
CUSTOMER ENROLLMENT	ACCESS SERVICE WITH	COMPLETE WITH MISSED	ENJOY MOBILE ISSUING		VALIDATE TRHOUGH	ENJOY YOUR MOBILE REFUND ON CREDIT CARD
COMPLETE TXN VIEW	DATA AND PAYMENT TYPE	MOBILE, APP, 3rd PARTIES	OR WALLET AND CONTINUE SHOPPING

ONLY PASSPORT

NUMBER, NATIONALITY,

EMAIL/SMS

AT TILL OR

MOBILE POS

17

Strategic Partnership with Ant Group

		PARTNERSHIP OVERVIEW	EASY REFUND PRODUCT (EARLY 2021 LAUNCH)
		Jointly develop digital TFS solutions and products
TECHNOLOGY
		to reduce friction, achieve paperless TFS and
		enhance the user experience for Alipay users
MARKETING	Jointly develop a comprehensive marketing
		solution leveraging on Alipay's Marketing platform
			BRAND MINI-PROGRAM WITH CASH BACK OR
COMMERCIAL	Promote acceptance of Alipay and its Ecosystem	EXTRA REFUND COUPON (EARLY 2021 LAUNCH)
		Companies in Global Blue's network of Merchants

18

Source: Company Information.

UK Tax Free Shopping Scheme Abolition

On Sept. 11th, the UK Government announced the decision to abolish the VAT Export Scheme from January 1st 2021, which allowed international visitors to the UK to reclaim the VAT paid on goods purchased, but not consumed, in the UK.

The UK Government justified the decision on the following basis, which are disputed by Global Blue and the industry:

	POLITICAL				FINANCIAL
▪ No extension of Tax-Free Shopping	▪	"Saving" of £500M of VAT per annum
scheme to EU27 in the context of		refunded to non-EU shoppers.
Brexit negotiation.
			▪	No VAT to be refunded to EU citizens
				(if extension of the scheme to EU27).

• Removal of an implicit subsidy to London businesses in the context of the "levelling up" policy.

OPERATIONAL

• Inability of Customs to manage additional Tax Free volume coming from EU shoppers (as, unlike other countries, the UK has not digitalized its paper-based customs system).

unlike other countries, the UK has not digitalized its paper-based customs system)

DESPITE ACTIVE LOBBYING FROM GLOBAL BLUE AND THE INDUSTRY, TAX FREE SHOPPING SCHEME

WILL MOST LIKELY BE ABOLISHED BY DECEMBER 31st 2020

19

UK Tax Free Shopping scheme abolition impact

could be mitigated by 2 positive factors

DIRECT LOSS OF REVENUE FOLLOWING THE LIKELY ABOLITION OF UK TAX FREE SHOPPING SCHEME

FY2019/20A UK TFS Revenue:

€49M

(12% of Global Blue Revenue of FY2019/20A)

MITIGATING FACTOR #1

A significant proportion of international shoppers who had previously shopped in the UK would consider redirecting their purchases to EU 27(1):

62%		95%		93%
of respondents		would spend less		would consider
will be less likely		on shopping		changing where
to visit the UK		in the UK		they shop overseas

International Shoppers are highly mobile and price sensitive:

2.6 countries visited per trip in Europe and price elasticity ratio is >1.8

MITIGATION FACTOR #2

• From January 1st 2021, UK residents will be able to shop Tax Free in EU 27.
• Potential additional revenue: +~4% of revenue FY2019/20A(2) .

(1)	Survey based on 40K + Tax Free Shoppers across all geographies (between September 14th and 16th, 2020)	20
(2)	Global Blue estimation

AGENDA

H1	H1
STRATEGIC	RECOVERY
FINANCIAL	INITIATIVES AND
SCENARIO
PERFORMANCE	REGULATORY

UPDATE

21

#1

#2

#3

RECOVERY SCENARIO

Global Blue Consumer Surveys show that 66% of International Shoppers have expressed a strong appetite to travel again(1) in the coming months. For Elite and Frequent shoppers, the percentage increases to 75% for Chinese and 99% for Russians.

The recent vaccine announcements by major pharmaceutical companies allows us to envisage a gradual return to normal/pre-COVID levels based on a 5 PHASES SCENARIO.

As a result of the Savings Program implemented in H1 2020/21, a recovery to 2019 revenue level would imply AN IMPROVEMENT OF 800 BPS OF ADJUSTED EBITDA MARGIN (50% versus 42%).

(1) Appetite to travel is contingent on open borders and no quarantine

22

Global Blue has taken the international shopping market's pulse by

running a survey on Tax Free Shoppers

~16,000 international shoppers
Every month
From 5 countries			GCC	…answering 1 main question
GR.CH.	SEA

Are international shoppers ready to travel again?

Surveyed countries: Greater China (China, Taiwan, Hong Kong, Macao), South East Asia (Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam), United States of America, Russia, Gulf Cooperation	2323
Council (Saudi Arabia, Kuwait, UAE, Qatar)

Are international shoppers ready to travel again?

International shoppers are increasingly willing to travel in coming months

How are you feeling now about the prospect of an overseas trip next month? If borders open, with no quarantine, would you go?

+6pp	-1pp
	+8pp

+13pp

+18pp

+1pp

60% 66%

49%

67%

58%

98%

79%

56%

JUNE'20	JULY -SEPT'20	OCTOBER'20
BAROMETER 1	BAROMETER 2,3,4 (1)	BAROMETER 5	GR.CH.	SEA		GCC
			• The per country analysis is calculated with the Weighted average based on Tax Free spend distribution
			across travellers nationalities in 2019
			• Greater China = Mainland China, Hongkong, Macau, Taiwan.
			• SEA = Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
(1) The average of barometers 2, 3 and 4 is calculated based on barometers results weighted by the number of monthly	• GCC = Saudi Arabia, Kuwait, UAE, Qatar			24
• Tax Free Shoppers that have spent at least €3K in the past 4 months for which a Tax Free Form has
respondents			been issued and refunded

Are international shoppers ready to travel again?

This figure reaches 72% for Elite & Frequent shoppers, +5 ppts compared to this summer

How are you feeling now about the prospect of an overseas trip next month? If borders open, with no quarantine, would you go?

+5pp	+7pp
73%	+2pp
72%
	65%

66%53%

+13pp

+27pp	99%
92%
	-3pp
	63%

OCTOBER	INFREQUENT
	1 trip per year
	not familiar with TFS

Note: The per country analysis is calculated with the Weighted average based on Tax Free spend distribution across travellers nationalities in 2019

FREQUENT + ELITE

2+ trips per year

know how TFS works	GR.CH.	SEA	GCC
+
€40K+ in last 2 years
know how TFS works
Increase compared to previous barometer	Decrease compared to previous barometer	25

Tax Free Shopping recovery expected in 5 phases

Given the willingness of International Shopper to travel again, when,

where and how can we expect a return to "normal" ?

REGIONAL BORDERS	INTERNATIONAL	END OF THE
REOPENING	BORDERS REOPENING	PANDEMIC

PHASE 1

BORDERS CLOSED

STORES OPEN

ESTIMATED % TAX FREE SPEND VS 2019

< 5%

Europe

< 5%

Asia

STRICT SANITARY CONTROLS
PHASE 2	PHASE 3
INTRA-REGIONAL	LONG-HAUL
TRAVELS RE-START	FLIGHTS RE-START

WHERE

WE STAND

TODAY

10 - 20%20 - 40%

10 - 20%60 - 80%

PHASE 4	PHASE 5
GRADUAL RETURN	NORMAL

TO NORMAL

60 - 80%95 - 105%

90 - 100%100 - 110%

The figures above represent assumptions used in management's long-term targets and do not constitute guidance. Recovery may not occur linearly. Borders and stores may close, and travel may be curtailed again depending	26
on how the pandemic continues to develop. This is forward-looking information - see Disclaimer. Source: Company Information.

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

TRIGGER FOR INTERNATIONAL TRAVELS RE-START

When will international travel re-start?

Visa, borders openings & aligned sanitary conditions are 3 pre-requisites …

VISA AVAILABILITY

NUMBER OF VISA

CENTERS OPEN

BORDERS REOPENINGS

ABILITY TO TRAVEL TO REGIONAL &

LONGHAUL DESTINATION

ALIGNED

SANITARY CONDITIONS

NUMBER OF NEW INFECTED CASES

PER 100,000 INHABITANTS

LESS THAN 20 NEW CASES PER 100,000 INHABITANTS (December 5th, 2020)

ORIGIN		DESTINATION
MARKETS		MARKETS
		12 weeks*
Greater China		Singapore
		0 weeks*
		S. Korea
		0 weeks*
		Japan

*week with less than 5 case per 100,000 inhabitants

MORE THAN 50 CASES PER 100,000 INHABITANTS (December 5th, 2020)

ORIGIN		DESTINATION
MARKETS		MARKETS

GCC	UK

Germany

Spain

Russia

Italy

France

United States

27

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

TRIGGER FOR INTERNATIONAL TRAVELS RE-START

… as well as fast testing and the end of quarantine measures

FAST TESTING TO SUPPORT	AIR TRAVEL IS LIMITED BY
INTERNATIONAL TRAFFIC RECOVERY	QUARANTINE RISK UPON RETURN
A lack of testing protocol alignment drives confusion	Impact of quarantine on traffic to Singapore recovery

#1 Pre-travel testing	#2 Testing @destination
AIRLINES, IATA AND INTERNATIONAL	SOME DESTINATIONS MARKET
TRAVELLERS FAVORED SOLUTION TO	AUTHORITIES PREFER TO
REDUCE TRAVEL UNCERTAINTY	CONTROL SANITARY STATUS OF
	PASSENGERS AT ARRIVALS

LEISURE NOV 6TH

QUARANTINE ON RETURN

Greater China

LEISURE NOV 23RD

NO QUARANTINE ON RETURN

Hong Kong

3%

OF CHRISTMAS 2019 BOOKINGS

TO SINGAPORE

50%

OF CHRISTMAS 2019 BOOKINGS

TO SINGAPORE

28

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

TRIGGER FOR GRADUAL RETURN TO NORMAL

The vaccine will then enable a return to Normal…

#1

VACCINE

EFFICACY

#2

VACCINE SUPPLY

#3

WILLINGNESS TO

BE VACINATED

92% 95%

70% 95%

2.5 billion doses by

mid 2021 based on vaccine firms currently in phase 3

60% of worldwide

population are considering vaccination when available

STATUS

VACCINE APPROVED LOCALLY OR FOR EMERGENCY USE

CAPACITY

(Bn DOSES / YEAR)

1.0

0.1

• 0.1
  0.3

1.3

1.0

3.0

2.0

VACCINE IN CLINICAL PHASE 3

GLOBAL ROLL OUT

Q4'20 Q1'21 Q2'21

v

v

UNDER REVIEW FOR APPROVAL

Sources: Laboratories, New York Times, Guardians, Les Echos	29

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

GRADUAL RETURN TO NORMAL

• that we expect to be gradual with a 3 to 6 months recovery lead time: from 90 to 100% in APAC and 60 to 80% in Europe

2003 SARS OUTBREAK EPIDEMIC - % TAX FREE SPEND PROGRESSION (YOY)

The 2003 SARS example shows that it took around 3 months to fully recover

											39%				34%
													30%	32%
29%	27%												29%	29%
13%	13%												16%	18%
										9%
				5%						6%
			0%							2%
		-1%											-1%
										-12%
								-21%		-16%-16%			WHO ANNOUNCED
								-24%
					-28%	-30%						GLOBAL CONTROL
				-32%	-32%
										JULY 5TH
						-52%	-55%
JAN-03		FEB-03		MAR-03	APR-03	MAY-03	JUNE-03	JUL-03	AUG-03	SEP-03	OCT-03

EUROPEAPAC WORLDWIDE

LAG EFFECT BETWEEN BOOKING & TRAVEL (IN A NON PANDEMIC CONTEXT)

In a "return to normal" context a lag effect is taken into consideration between decisions to travel and trip date, which vary by nationality

LEAD TIME AVG. DAYS (AIR BOOKINGS)

SOURCE MARKET

EUROPE

ASIA

96N/A

55N/A

5642

36N/A

30

Source: Forward keys

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

NORMAL

When back to Normal, we expect Chinese International Shoppers to lead the international shopping spending, on the back of a faster economic rebound

GDP GROWTH

	6.4%	6.2%	6.0%	6.0%			6.0%
						4.9%
	1.9%2.3%			2.3%	3.2%		2.5%
3.0%		2.1%
	1.7%		1.0%	1.0%	0.3%
	0.6%
		2.7%					-2.7%
-2.0%			1.4%	-0.9%		-2.9%
							-4.4%
					-5.6%
					-6.8%
-7.0%					-6.1%
					-9.6%
					-9.0%		-11.9%

-12.0%

-17.0%

-21.5%

-22.0%

Q1 2019

Q2

Q3

Q4

Q1 2020

Q2

Q3

Q4 Est

ESTIMATION

• China's GDP is expected to cross
  100-trillion yuan mark in 2020, equivalent to the total combined GDP of Japan, Germany, UK and France.
• On 11.11 (Singles' Day), Sales reached new heights
• IMF forecasted in Oct. that China's
  2021 GDP growth rate would be 8.2%.

Source: Organisation for Economic Co-Operation and Development

31

Tax Free Shopping recovery expected in 5 phases

REGIONAL BORDERS	INTERNATIONAL	END OF THE
REOPENING	BORDERS REOPENING	PANDEMIC

PHASE 1

BORDERS CLOSED

STORES OPEN

ESTIMATED % TAX FREE SPEND VS 2019

< 5%

Europe

< 5%

Asia

STRICT SANITARY CONTROLS
PHASE 2	PHASE 3
INTRA-REGIONAL	LONG-HAUL
TRAVELS RE-START	FLIGHTS RE-START

WHERE

WE STAND

TODAY

10 - 20%20 - 40%

10 - 20%60 - 80%

PHASE 4	PHASE 5
GRADUAL RETURN	NORMAL

TO NORMAL

60 - 80%95 - 105%

90 - 100%100 - 110%

The figures above represent assumptions used in management's long-term targets and do not constitute guidance. Recovery may not occur linearly. Borders and stores may close, and travel may be curtailed again depending	32
on how the pandemic continues to develop. This is forward-looking information - see Disclaimer. Source: Company Information.

Given the recovery scenario expected and the Savings Program executed in H1, what will be the impact on Global Blue's long-term profitability ?

SHORT TERM

FIXED ADJUSTED

OPERATING EXPENSES

SAVINGS PROGRAM

LONG TERM

FIXED ADJUSTED OPERATING EXPENSES SAVINGS PROGRAM

Use of government support schemes (furlough or partial employment schemes) where available.

Implement at the end of government support schemes, long-term headcount reduction, while preserving core knowledge and assessed business resumption scenarios.

50% expected savings on total fixed adjusted operating expenses.

54% was achieved in

H1 2020.

30% expected long- term savings on total fixed adjusted operating expenses.

33

Yearly Proforma Fixed Adjusted Operating Expenses Structure

after savings program implemented in H1 2020

FIXED ADJUSTED OPERATING EXPENSES

(€M)	250	(90)
		SHORT-TERM REDUCTION
					€80M Savings(1)
				leveraging available government
VARIABLE	90	(90)		support schemes & limited volume
						LONG-TERM REDUCTION
			160		(80)				€50M Savings
							redundancies
									& resumed volume
FIXED	58		58		(27)
					30	110
non personnel					(54)
					80		11
							19	42
FIXED	103		103			31
personnel
									67
						49
	ADJUSTED OPERATING	VOLUME DRIVEN	TOTAL FIXED	SHORT TERM ACTIONS	FIXED AJUSTED	REDUCED SAVINGS	FIXED ADJUSTED
	EXPENSES	REDUCTION	ADJUSTED OPERATING	(12 MONTHS RUN-RATE)	OPERATING EXPENSES	(12 MONTHS RUN-RATE)	OPERATING EXPENSES
			EXPENSES		BASE POST SHORT TERM		BASE POST LONG TERM
							ACTIONS			ACTIONS

(1) €80M 12 months run-rate on short-term actions in line with the €43M reduction in H1 2020/21	34
Note: The figures above represent assumptions used in management's long-term targets and do not constitute guidance

Illustrative EBITDA at various potential revenue recovery levels

SAVINGS PROGRAM TAKE-OUT

ADJUSTED EBITDA	€254M
€221M	33
35	221

€50M

Total savings being

implemented

€(8)M	€187M
Re-hires	€42M

Future re-hires

for positions

deemed semi-

fixed,

which are made redundant today

42%

Total savings

(at 70% recovery)

Jan-20

LTM EBITDA(1)

		€188M
	€156M	36	187
	39	152
€124M
42	117
			52%	% Adjusted
			50%		EBITDA Margin
83		47%
	44%
40%
70%	80%	90%	100%	110%
	ILLUSTRATIVE TOP-LINE RECOVERY RANGE (% OF PRE-COVID REVENUE)

(1) Jan-2020 LTM EBITDA presented assuming bonus normalization. Source: Company Information.	35
Note: Simulation based on illustrative assumptions and should not be relied upon as being indicative of future results. This is not a forecast. This is forward-looking information - see Disclaimer.

CONCLUSION

The recent COVID-19 vaccine announcements open the possibility for a

GRADUAL RECOVERY OF GLOBAL BLUE'S BUSINESSES

EMERGING MARKETS		VAT		DIGITALISATION
DYNAMICS		DYNAMICS		DYNAMICS

FUNDAMENTAL GROWTH DRIVERS REMAIN INTACT

36

APPENDIX

IFRS Consolidated Income Statement and Balance Sheet Reconciliations with non-IFRS financial measures Glossary

37

IFRS Consolidated Income Statement

Half Year, €M	H1 2019/20	H1 2020/21
Total Revenue	227.7	20.0
Operating Expenses	(190.5)	(354.0)
Operating Profit	37.2	(334.0)
Finance income	2.6	2.0
Finance costs	(18.8)	(13.8)
Net Finance costs	(16.2)	(11.8)
Profit Before Tax	21.0	(345.7)
Income Tax Expense	(9.0)	16.5
Net Income	12.0	(329.2)
Profit attributable to:
Owners of the parent	8.2	(328.2)
Non-controlling interests	3.8	(1.1)

38

Balance Sheet

€M	FY 2019/20A	H1 2020/21A		€M	FY 2019/20A	H1 2020/21A
				Equity attributable to owners of the parent	63.1	(45.2)
				Non-controlling interests	8.4	6.3
				Shareholders Equity	71.5	(38.9)
Property, plant and equipment	51.4	43.5		Loans and borrowings	624.6	621.7
Intangible assets	631.0	594.9		Other long term liabilities	34.6	25.2
Deferred income tax asset	12.3	21.3		Deferred income tax liabilities	34.6	25.9
Investments in associates and joint ventures	2.9	2.9		Post-employment benefits	8.0	8.0
Other non-current receivables	15.2	12.5		Provisions for other liabilities and charges	2.2	2.2
Non Current Assets	712.8	675.2		Non Current Liabilities	704.0	683.1
Trade receivables	141.3	47.2
Other current receivables	33.8	30.9		Trade Payables	237.3	169.1
Derivatives financial instruments	0.7	0.4		Other current liabilities	45.2	36.0
Income tax receivables	1.6	1.2		Accrued liabilities	41.8	36.9
Prepaid expenses	7.9	6.7		Current income tax liabilities	23.2	26.1
Cash and cash equivalents	226.1	249.9		Loans and borrowings	1.1	99.1
Current Assets	411.4	336.2		Current Liabilities	348.7	367.2
TOTAL ASSETS	1,124.2	1,011.4		TOTAL LIABILITIES	1,124.2	1,011.4

39

Reconciliations (1/4)

Adjusted Operating expenses

	Half Year, €M	H1 2019/20	H1 2020/21
	Operating expenses	(190.5)	(354.0)
	Exceptional items	9.2	256.1
	Amortization of intangible assets acquired through business combination	37.2	37.2
	Adjusted Depreciation and Amortization	17.7	21.2
	Adjusted Operating expenses	(126.4)	(39.5)
Adjusted Depreciation & Amortization
	Half Year, €M	H1 2019/20	H1 2020/21
	Depreciation & Amortization	(54.9)	(58.4)
	Amortization of intangible assets acquired through business combination	37.2	37.2
	Adjusted Depreciation & Amortization	(17.7)	(21.2)

40

Reconciliations (2/4)

Adjusted EBIT and EBITDA

Half Year, €M	H1 2019/20	H1 2020/21
Operating Profit	37.2	(334.0)
Exceptional items	9.2	256.1
Amortization of intangible assets acquired through business combination	37.2	37.2
Adjusted EBIT	83.6	(40.6)
Adjusted Depreciation and Amortization	17.7	21.2
Adjusted EBITDA	101.3	(19.5)

Adjusted Profit Before Tax

Half Year, €M	H1 2019/20	H1 2020/21
Profit Before Tax	21.0	(345.7)
Exceptional items	9.2	256.1
Amortization of intangible assets acquired through business combination	37.2	37.2
Adjusted Profit Before Tax	67.4	(52.4)

41

Reconciliations (3/4)

Adjusted Income Tax expenses

Half Year, €M	H1 2019/20A	H1 2020/21A
Income Tax expenses	(9.0)	16.5

Income Tax expenses related to Amortization of intangible assets acquired through business combination

Tax impact of exceptional items

Exceptional income tax expenses

Tax effect adjustments

Adjusted tax expenses

(7.5)	(7.5)
(1.1)	(1.7)
1.1	0.9
(7.6)	(8.3)
(16.6)	8.2

Adjusted Profit / (Loss) attributable to the owner of the parent

Half Year, €M	H1 2019/20	H1 2020/21
Profit / (Loss) attributable to the owner of the parent	8.2	(328.2)
Exceptional items	9.2	256.1
Amortization of intangible assets acquired through business combination	37.2	37.2
Tax effect adjustments	(7.6)	(8.3)
Adjusted Profit / (Loss) attributable to the owner of the parent	47.1	(43.1)	42

Reconciliations (4/4)

Net Financial Debt

Half Year, €M	FY 2019/20A	H1 2020/21A	M€
Cash & Cash Equivalent	(226.1)	(249.9)	(23.7)
Borrowings repayable after one year	624.6	621.7	(2.8)
Revolving credit facility	0.0	99.0	99.0
Lease liabilities - repayable within one year	14.0	13.1	(0.9)
Lease liabilities - repayable within after year	27.8	23.0	(4.8)
Bank Overdraft	1.1	0.1	(1.0)
Net Debt	441.3	507.0	65.7
Lease liabilities - repayable within one year	(14.0)	(13.1)	0.9
Lease liabilities - repayable within after year	(27.8)	(23.0)	4.8
Bank Overdraft	(1.1)	(0.1)	1.0
Capitalized financing cost	9.7	8.3	(1.4)
IFRS9 loans modification impact	(4.3)	0.0	4.3
Net Financial Debt	403.9	479.1	75.3

43

Glossary

Tax Free Shopping Issued Sales In Store: sales for which a tax free form has been issued.

Added Value Payment Services Potential Sales In Store: sales for which the international shoppers have the option to use Global Blue Dynamic Currency Conversion system, services which enable international shoppers to pay in their home currency at the point of sale.

Mobile Customer Care: Tax Free Shopping real-time notification solution helping international shoppers to complete the Tax Free Shopping process.

Elite shoppers: International Shoppers who have shopped Tax Free with Global Blue for more than 40,000€ and who have made more than 3 trips over the past 24 months.

Frequent shoppers: International Shoppers who have shopped Tax Free with Global Blue for less than 40,000€ and

who have made more than 3 trips over the past 24 months.

Infrequent shoppers: International Shoppers who have shopped Tax Free with Global Blue for less than 40,000€ and who have made less than 3 trips over the past 24 months.

44

ENHANCING THE INTERNATIONAL SHOPPING EXPERIENCE