Birkenstock Holding plc · NYSE:BIRK
Birkenstock — Q2 2024 Earnings Presentation
26 slides from Birkenstock's earnings presentation, May 30, 2024
Slide 1: Birkenstock Financial Results Q2 FY24
BIRKENSTOCK: May 30, 2024 BIRKENSTOCK FINANCIAL RESULTS Q2 FY24
Slide 2: Forward-looking statements disclaimer
Certain statements in this Presentation may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securiti
Slide 3: Financial Results Q2 FY24
BIRKENSTOCK FINANCIAL RESULTS Q2 FY24
Slide 4: Q2 FY24 at a Glance
BIRKENSTOCK FINANCIAL RESULTS Q2 FY24 AT A GLANCE IN € MILLION, UNLESS OTHERWISE STATED REVENUE DTC REVENUE DTC PENETRATION GROSS PROFIT | MARGIN ADJUSTED EBITDA | MARGIN ADJUSTED NET PROFIT ADJUSTED EPS (€) NET LEVERAGE (X LTM ADJ. EBITDA") Note: Unless otherwise stated, all comparisons are to12 FY
Slide 5: Continued revenue growth in line with long-term CAGR
BIRKENSTOCK: CONTINUED REVENUE GROWTH IN LINE WITH LONG-TERM CAGR IN € MILLION, UNLESS OTHERWISE STATED CAGR FY2014 - LTM 02 FY24: 21% | 1,492 1,243 962 48 722 728 570 452 0 364 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 02 FY24 LIM Note: F2020-LTM2 FY24: Consolidated IFRS numbers at Birkenst
Slide 6: 20%+ revenue growth across all segments & channels
BIRKENSTOCK: 20%+ REVENUE GROWTH ACROSS ALL SEGMENTS & CHANNELS IN € MILLION, UNLESS OTHERWISE STATED AMERICAS EUROPE APMA 254 176 31 +21% +21% +42% CHANNELS BIRKENSTOCK
Slide 7: Capacity expansion temporarily impacting gross profit
BIRKENSTOCK CAPACITY EXPANSION TEMPORARILY IMPACTING GROSS PROFIT IN € MILLION, UNLESS OTHERWISE STATED +15% | (320)b9,~ ————} 271 | 56.3% 235 | 59.5% Margin decrease primarily due to the planned, temporary under-absorption from ongoing capacity expansion and a planned, inflation-telated increase in
Slide 8: S&D increase from retail investment; fixed cost leverage in G&A
BIRKENSTOCK S&D INCREASE FROM RETAIL INVEST | FIXED COST LEVERAGE IN G&A AS % OF 2 FY24 REVENUE ADJUSTED SELLING & DISTRIBUTION ADJUSTED GENERAL ADMINISTRATION EXPENSES: €113M EXPENSES: €20M Increase vs. prio yer is largely driven by REE Emo Decrease vs. 02 F23is largely driven by investments into o
Slide 9: Capacity expansion temporarily impacting adjusted EBITDA
BIRKENSTOCK CAPACITY EXPANSION TEMPORARILY IMPACTING ADJUSTED EBITDA AS % OF O2 FY24 REVENUE 38.4% (100bp) - (220bp) 33.7% (150bp) Includes increased wages and salaries for Mainly relates to investments into our retail Reflects the planned, temporary under-absorption production workforce, as well as
Slide 10: Adjusted EPS of €0.41 in Q2 FY24 in line with prior year
BIRKENSTOCK ADJUSTED EPS OF €0.41 IN Q2 FY24 IN LINE WITH PRIOR YEAR IN €, UNLESS OTHERWISE STATED Flat due to higher depreciation and amortization and !PO-related share AdustedEPS SE (Basic/Diluted) Q2 FY23 02 FY24 Note: Adjusted EPS (ssicliluted) is anon-1FRS measure For a reconciliation to the ma
Slide 11: Strong inventory to sales ratio improvement vs. Q2 FY23
BIRKENSTOCK STRONG INVENTORY TO SALES RATIO IMPROVEMENT VS. Q2 FY23 TRADE WORKING CAPITAL | IN-€ MILLION AND AS % OF LTM REVENUE 730 | 45% + €119 million Raw Materials / WIP included in inventory balance 654 | 49% * Largest part of Finished Goods are a) 564 | 38% carry-over products, and) contracted
Slide 12: Stable Q2 leverage of 2.6x after Q1 loan repayments
BIRKENSTOCK: STABLE Q2 LEVERAGE OF 2.6X AFTER Q1 LOAN REPAYMENTS NET DEBT & NET LEVERAGE | IN € MILLION, UNLESS OTHERWISE STATED 1 FY24: Early partial repayments of + €425 million USD Teim Loan B (Nov-23) ‘ (22!% + €100 millon Vendor Loan (0-23) 3.3x | 2.6x Net Debt 1,609 1,299 po po LTM Adjusted EB
Slide 13: Improved cash generation despite seasonal NWC increase
BIRKENSTOCK: IMPROVED CASH GENERATION DESPITE SEASONAL NWC INCREASE IN € MILLION Q2 FY23 FY24 Operating Cash Flow 37 50 tlo: Funds from operations 149 156 tlo: Changes in working capital (1) (106) Investing Cash Flow (25) (18) Financing Cash Flow (29) (26) tlo: Net IPO proceeds — (0) t/o: Repayment
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Slide 15: Raising FY24 revenue and adjusted EBITDA guidance
BIRKENSTOCK: RAISING FY24 REVENUE AND ADJUSTED EBITDA GUIDANCE GUIDANCE FY24 ~20% INCREASE @ constant currencies ‘ Given the strong the first half of FY24 and continued demand growth, BIRKENSTOCK is raising €1.77-1.78 BILLION its FY24 guidance REVENUE * — FY24 reported revenue is now expected to be
Slide 16: Appendix
BIRKENSTOCK: APPENDIX
Slide 17: Income Statement
BIRKENSTOCK: INCOME STATEMENT IN € MILLION | UNAUDITED YTD a1-02 a2 FY23 FY24 FY23 FY24 Revenue 644 784 396 481 Cost of sales (255) (328) (160) (210) Gross profit 389 456 235 271 Selling and distribution expenses (173) (217) (87) (113) General administration expenses (55) (54) (32) (20) Foreign exch
Slide 18: Balance Sheet
BIRKENSTOCK: BALANCE SHEET IN € MILLION | UNAUDITED 4 a2 04 a FY23 FY24 FY23 FY24, _ Goodwill 1,594 1377 TOTAL SHAREHOLDERS EQUITY 2,401 2,554 S Intangible assets (other than goodwill) 1,706 1,677 _ Loans and borrowings 1316 1,644 3 Property, plant and equipment 409 468 = Lease liabilities 103 139 S
Slide 19: Cash Flow Statement
BIRKENSTOCK: CASH FLOW STATEMENT IN € MILLION | UNAUDITED ym ai-02 @ FY FY2h FY FY2h Net profit (loss) “0 oh ag 2 Depreciation & amortization a a 20 % Change in expected credit ins \ a) 0 Finance cost, net 55 63 30 a Nel exchange differences 4B "7 7 H Non-cash operating items 3 2 2 f Income tax expe
Slide 20: Reconciliation of Non-IFRS Measures (1/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (1/6) REVENUE | IN € MILLION | UNAUDITED YTD a1-02 a2 FY24 FY24 Revenue 734 481 Add (Less): US. Dollar impact 12 3 Canadian Dollar impact | | Other 2 0 Constant currency revenue 799 186 Revenue growth, constant currency mh 2h Q2 Q2 Constant Currency F
Slide 21: Reconciliation of Non-IFRS Measures (2/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (2/6) OPERATING EXPENSES | IN € MILLION | UNAUDITED YTD 01-02 a2 FY23 FY24 FY23 FY24 Selling and distribution expenses (173) (217) (e7) (713) Add Adjustments: Share-based compensation expenses 0 0 0 Relocation expenses” 4 - 2 - Adjusted Selling and di
Slide 22: Reconciliation of Non-IFRS Measures (3/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (3/6) EBITDA | IN € MILLION | UNAUDITED YTD 01-02 a2 FY23 FY24 FY23 FY24 Net profit (loss) 40 64 4 2 Income tax expense 2B 40 2b 33 Finance cost. net 55 63 30 7 Depreciation & amortization M 47 20 mM EBITDA 158 215 123 197 Add Adjustments: Share-based
Slide 23: Reconciliation of Non-IFRS Measures (4/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (4/6) NET PROFIT | IN € MILLION | UNAUDITED YTD a1-02 a2 FY23 FY24 FY23 FY24 Net profit (loss) 40 64 49 7 Add (Less) Adjustments: Share-based compensation expenses 3 4 3 - Relocation expenses” 4 - 2 - Restructuring expenses? 2 - 2 - [PO-related costs’
Slide 24: Reconciliation of Non-IFRS Measures (5/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (5/6) EARNINGS PER SHARE | IN €, UNLESS OTHERWISE STATED | UNAUDITED YTD a1-02 a2 FY23 FY24 FY23 FY24 Net profit (loss) (in € million) 40 64 49 1 Adjusted Net profit (loss) (in € million) 102 14 B 1 Weighted number of outstanding shares (in million) 1
Slide 25: Reconciliation of Non-IFRS Measures (6/6)
BIRKENSTOCK: RECONCILIATION OF NON-IFRS MEASURES (6/6) NET DEBT | IN € MILLION | UNAUDITED a4 a2 FY23 FY24 Loans and borrowings (Non-current) 1,816 1,299 USD Term Loan (Current) 7 3 Lease liabilities (Non-current) 133 139 Lease liabilities (Current) a 34 Cash and cash equivalents (344) (176) Net Deb
Slide 26: FY23 Quarterly Reconciliation
BIRKENSTOCK: FY23 QUARTERLY RECONCILIATION INCOME STATEMENT | IN € MILLION | UNAUDITED Revenue Cost of sales Gross profit Cperating expenses Selling and distribution expenses, General administration expenses Foreign exchange gain (loss) Other income (expense), net Profit from operations Finance cost