Zooplus : Q1 Statement 2021 (pdf)

Table of contents

1. Key figures at a glance
2. The zooplus AG share
   zooplus in the first three months of 2021
3. Situation related to the COVID-19 pandemic

1. Pet supplies is a highly attractive category to operate in

1. zooplus the largest online player in Europe

1. Mid-termstrategic and financial outlook 2025
2. Business performance Q1 2021
3. Results of operations

1. Net assets
2. Financial position

1. Risks and opportunities, Outlook

1. Subsequent events

Selected financial information

1. Consolidated balance sheet

1. Consolidated statement of comprehensive income
2. Consolidated statement of cash flows
3. Consolidated statement of changes in equity

Service

1. Glossary
2. Imprint

Key figures at a glance for Q1 2021 vs. Q1 2020

		Q1 2021	Q1 2020	Change
Sales	EUR m	508.6	439.9	+15.6%
Own brands sales share	%	17.4%	15.1%	+2.4%p
Revenue Retention Rate as of 03/31	%	97%	94%	+3%p
Gross profit	EUR m	156.2	129.3	+26.9
Gross margin	%	30.7%	29.4%	+1.3%p
EBITDA	EUR m	24.5	8.1	+16.5
EBITDA margin	%	4.8%	1.8 %	+3.0%p
EBT	EUR m	16.2	0.7	+15.6
Consolidated net profit/loss	EUR m	10.3	-0.5	+10.8
Earnings per share (undiluted)	EUR	1.44	-0.07	+1.51
Earnings per share (diluted)	EUR	1.41	-0.07	+1.48
Free cash flow	EUR m	48.1	40.4	+7.7
Active repeat customers as of 03/31	million	5.3	4.6	+15%
Active customers as of 03/31	million	8.6	7.8	+10%

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The zooplus AG share

Although uncertainties regarding the future course of the COVID-19 pandemic continued to linger, a positive sentiment on the stock market prevailed in the first quarter of 2021. As of the March 31, 2021 reporting date, the German DAX (+9.4%), MDAX (+3.0%), SDAX (+4.6%) and TecDAX (+5.7%) showed considerable gains in this environment, while the DAXsubsector All Retail Internet (-5.2%) - the relevant index for zooplus - declined in comparison to its 2020 year-end level.

The zooplus share, listed in the SDAX, traded sideways during the first weeks of 2021. From mid-January to mid-February, the share showed an

Share price development Q1 2021

Shareholder structure

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upward trend followed by a drop back to a price level between EUR 180 and EUR 190. Following the communication of a mid-term outlook for the company with the publication of the financial year 2021 outlook at the end of March, the share price increased to a level of more than EUR 240.

The Xetra closing price of EUR 243.50 on March 31, 2021, was 43.4% higher than the closing price on December 30, 2020 (EUR 169.80). The market capitalization of zooplus as of March 31, 2021, based on the 7,149,178 shares outstanding on that date, amounted to EUR 1,740.8 m.

Analyst coverage

		Baader Bank				265
		Barclays				180
		Berenberg				155
	Commerzbank				215
Hauck & Aufhäuser				225
J.P. Morgan Cazenove				350
Kepler Cheuvreux				153
		Liberum				220
		Stifel				141
		Metzler				142
Quirin Privatbank				230
Warburg Research				230
		Buy / Overweight			Hold		Sell / Underweight / Reduce

Key data

zooplus in the first three months of 2021

Situation related to the COVID-19 pandemic

The rise of the pandemic had a global impact on how businesses operate and on how consumers behave. As an online pure player in an essential category, the zooplus business model proves to be resilient in this crisis environment. The zooplus Group is continuously monitoring the current developments and restrictions taking place in the sourcing and sales markets, as well as their potential effect on procurement cycles and transport, and is taking the appropriate actions to counter these developments.

Pet supplies is a highly attractive category to operate in

A large number of studies indicates that pet ownership is gaining more and more popularity, with an increasing number of households choosing to own a pet compared to previous years. This, combined with the tailwinds coming from premiumization in pet care and pets being viewed more and more as a family member make up for a highly attractive and growing market to operate in.

zooplus the largest online player in Europe and ideally positioned to capture the opportunity in the growing pet market

With consumers shifting towards the online channel, pet supplies is developing into a highly sought-after product group in online retailing. zooplus is ideally positioned to benefit from the increase in the number of households owning a pet as well as the accelerated shift of customers towards more efficient online channels for pet supplies across all of Europe.

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Mid-term strategic and financial outlook 2025

With pet population growing across Europe and fueled by trends such as premiumization, humanization of pets and an accelerated shift towards online, zooplus expects the pet supplies market to accelerate in growth from 3% to 6% p.a., totaling EUR 35 bn to EUR 37 bn by 2025 (2020: EUR 28 bn to EUR 29 bn). zooplus is ideally positioned to tap into this tremendous growth potential and expects to increase its market share to 9% to 10% of the total market (both on- and offline) by 2025 (2020: market share of 6% to 7%). At the same time, the company expects sales of EUR 3.4 bn to EUR 3.8 bn by 2025 (2020: EUR 1.8 bn). In terms of operating profitability, the company expects sales in 2025 to yield a margin of at least 4% EBITDA (2020: 3.5% EBITDA).

Business performance Q1 2021

zooplus AG successfully started into the year 2021 on the back of continued positive momentum in the pet supplies category. Group sales for the first three months of 2021 increased by 16% to EUR 508.6 m (Q1 2020: EUR 439.9 m).

The growth continues to be supported by a strong performance in the monetization of the existing customer base combined with a healthy new customer business. The revenue retention rate of existing customers stood at 97% at the end of Q1 2021, and the number of active repeat customers increased by 15% to 5.3 m (Q1 2020: 4.6 m).

Gross profit stood at EUR 156.2 m, yielding a gross margin of 30.7% (Q1 2020: EUR 129.3 m; 29.4%). Operating profitability in terms of earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 24.5 m, yielding an EBITDA margin of 4.8% (Q1 2020: EUR 8.1 m; 1.8%). Free cash flow stood at a level of EUR 48.1 m

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at the end of the first quarter of 2021 (Q1 2020: EUR 40.4 m).

With Q1 2021 sales of EUR 508.6 m and an EBITDA of EUR 24.5 m, the Group is well on track to achieve the full-year targets as communicated in the Annual Report 2020: sales for the full year in the range of EUR 2.04 bn to EUR 2.14 bn and an operating profitability, measured by earnings before interest, taxes, depreciation and amortization (EBITDA), in the range of EUR 40 m to EUR 80 m, corresponding to an EBITDA margin as a percentage of sales ranging from 2% to 4%.

Overall, the Group's sales performance in the first three months of 2021 of EUR 508.6 m outgrew the sales volume of the previous quarters (Q2 2020: EUR 422.5 m; Q3 2020: EUR 436.4 m; Q4 2020: EUR 502.7 m) and confirms the sustainable, high- margin growth trajectory of the business.