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Investor Presentation | HY 2019
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Providing customers
tailored solutions
Long term relation-
ships with A-brand
suppliers
Broad and relevant
assortment of FMCG
Serving complex niche
markets worldwide
Linking suppliers
and customers that are difficult to
connect
Delivering to the right place,
at the right time
A unique value adding proposition
Differentiated
sourcing
Fully bonded
supply chain
Highly efficient
logistical
platform
Regulatory
expertise
Supply chain
excellence
3
Serving a diversified customer base worldwide
Empowering wholesalers and retailers (B2B)
Partner in remote distribution Experienced in retail (B2C)
Serving complex end-markets in maritime
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Entrepreneurial segments supported by centralised backbone
IT DistributionLegal &
ComplianceHR Finance & Control
Distribution of bonded liquors and
health & beauty products to
specialty retailers and online end-
customers
of 2018 Group turnover
Specialty distribution of FMCG
products to maritime and remote
markets
of 2018 Group turnover
Specialty retail at high traffic
airports and remote locations
of 2018 Group turnover
67% 25% 8%
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Key elements defining
our model
1
2
3
4
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Trusted and reliable partner with a clear
value proposition
Entrepreneurial segments powered by our
centralised Group platform
Leading positions in attractive channels and
specialised markets
Track record of strong and consistent
profitable growth
Focused on organic growth complemented
with strategic M&A
VALUE
distributionADDING
partner
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Solid sales channels that are exposed to attractive long term trends
Business segments
Turnover per segment 2018
B&S Group markets/ channels
Contribution to B&S Group turnover 2018
Column1
ChannelMarket
Outsourcing
Fragmentation and
complexity
Globalisation
A-brands and
luxury
Compliance
Value retail
E-commerce
Travel
Attractive long term trends
40.7%
27.2%
6.7%
7.3%
10.3%
7.8%
€ 1,197 M
€ 446 M
€ 137 M
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A defensive profile towards macro economic developments
Robust and global
product categories
with mainly A-
branded products that
outperform in
economic hardship
Bonded supplier
status
limiting the impact
of geopolitical
developments
Diversified supplier
and customer basis
with limited
dependency on a
single market
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Striving for continuous
economies of scale
Investments in logistics
and IT solutions on
Group level
Utilising our global
footprint to leverage
price position
Combining segmental
purchasing and sourcing
activities
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Firmly focused on continuous organic turnover growth
complemented with selective M&A
573 695
816 845 964
1,152
1,338 1,275
1,393
1,633 9 58
38
65
103
114
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Acquisitive
Organic
IFRSDutch GAAP
Topbrands
FragranceNet.com
Capi
UCVF
Alcodis
Discontinuation of
non-premium-brand
perfumes
(in million €)
10
26
38
47
59
52
65
84
89
106 109
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
IFRSDutch GAAP
Turnover
CAGR ’09 - ’18EBITDA
CAGR ’09 - ’18
17.3% p.a.
IFRSDutch GAAP
Resulting in a strong track record of profitable growth
Pressure on
China luxury
gifting
Discontinuation of non-
premium-brand
perfumes
573
677
825
903
1,002
1,152
1,3381,339
1,495
1,747
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
13.2% p.a.
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Synergy
effects
Well positioned to capture growth opportunities
Organic
growth
Acquisitive
growth
• Business model fit
• Integration focused
on organic growthExpansion by increasing presence in
our current markets
Tapping into new products and
markets
Cross-selling of products to existing
customers
Utilising the growth of existing
customers by matching
their increased demand for our
products
Strategy
Disciplined on price
Initially structured as
partnership or JV
Rapid back office and
sourcing integration
Boosting organic
growth of acquired
company
Sourcing synergies
Centralised backbone
– plug & play
Value chain expansion
Combined market
knowledge
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HY 2019 Highlights
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HY 2019 – Financial Highlights
Organic turnover growth▪ Growth of 7.4% (5.4% at constant currency)
▪ Of this growth, 0.9% stems from FragranceNet.com
EBITDA▪ EBITDA amounted to € 52.9 M
▪ pre IFRS 16 EBITDA came in at € 48.1 M
Overall turnover growth ▪ 17.1% to € 898.3 M (15.1% at constant currency)
Business segment
contribution▪ HTG +28.5% | B&S +0.5% | Retail +1.6%
Financial position▪ Solvency close to 34%
▪ Net debt / EBITDA at 2.9
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Key developments HY 2019
Investments on Group level
▪ Expansion of robotised warehouse in
HTG segment and combined with
FNET technology to further boost
Health & Beauty category
▪ Logistics operations in B&S Segment
on track
▪ Acquisition Lagaay Medical Group in
B&S Segment enhances single source
supply concept
▪ Acquisition Rotterdam & Weeze
Airport in Retail Segment strengthens
regional store portfolio
Performance on Segment level
▪ Growth driven by Health & Beauty value retail and e-commerce markets
▪ Strengthened international positions, intensified relationships in value
retail and increased focus on the online platform business
▪ Synergies from combined sourcing in Health & Beauty category
▪ Maritime market circumstances remain unfavourable
▪ Opportunities identified in remote markets
▪ Performance in B&S Segment as expected given market conditions and
additional costs in logistics (as communicated) with clear performance
improvement in B&S Segment trend noticeable in H2
▪ Lagaay integration into the B&S Segment in preparation
▪ Retail segment performed as expected
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Key figures HY 2019
▪ Turnover grew 17.1%, gross
profit grew 19.9%, margin was
14.1%
▪ EBITDA grew 15.2%
▪ IFRS 16 positively impacted
EBITDA by € 4.8 M, logistical
costs B&S Segment negatively
impacted EBITDA
▪ FragranceNet.com straight-line
amortisation of intangible fixed
assets has a material impact
on contribution to results in H1
from Fnet
Commentary€ million (unless otherwise
indicated)
HY 2019
reported
HY 2019
pre IFRS 16
HY 2018
reported
Δ (%)
reported
Profit or loss account
Turnover 898.3 898.3 766.9 17.1%
Gross profit 126.3 126.3 108.5 19.9%
EBITDA 52.9 48.1 45.9 15.2%
Depreciation & Amortisation 12.1 7.6 4.4
Profit before tax 35.1 35.5 38.4 (8.6%)
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HY 2019 – Segmental breakdown
€ million HY 2019 HY 2018 Change
HTG
Turnover 643.5 500.8 28.5%
Gross profit 82.9 58.7 41.1%
EBITDA 40.4 30.8 31.4%
EBITDA margin 6.3% 6.1% 0.2%
B&S
Turnover 221.3 220.3 0.5%
Gross profit 27.2 31.3 -13.0%
EBITDA 9.5 11.5 -17.1%
EBITDA margin 4.3% 5.2% -0.9%
Retail
Turnover 64.7 63.7 1.6%
Gross profit 16.5 15.8 4.3%
EBITDA 4.2 4.1 0.6%
EBITDA margin 6.4% 6.5% -0.1%
▪ HTG overall growth mainly
attributable to Health & Beauty
category: value retail, e-
commerce platforms and online
B2C
▪ Organic growth of HTG was
13.6% (12.1% on a constant
currency basis): strengthened
international positions, intensified
relationships in value retail and
increased focus on online
platform business
▪ B&S EBITDA impacted by
additional € 4 M logistics costs
(as communicated in CMD)
▪ Retail performed as expected
Commentary
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Overall turnover growth analysis
▪ The HTG segment is the main
contributor to Group organic
growth in H1 2019
▪ The inclusion of the acquisition
of FragranceNet.com
contributed € 81.8 M of which
€ 6.9 M was organic growth
stemming largely from
combined sourcing advantages
▪ The development of the
EUR/USD exchange rate had a
positive effect of € 15.3 M on
turnover growth
Commentary
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Financial Position
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HY 2019 - Financial position
€ million (unless stated otherwise) HY 2019 HY 2018
Financial position
Solvency ratio 33.7% 37.3%
Net debt 329.8 277.0
Net debt / EBITDA 2.9* 2.7
Inventory in days 98 103
Working capital in days 100 107
▪ Financial position within pre-
determined objectives
▪ Balance sheet and as such
solvency impacted by € 87 M
intangibles following Fnet
acquisition
▪ Net debt increase mainly
resulting from Fnet acquisition
and associated consolidation,
and the investment in working
capital
▪ Increase in working capital:
mainly related to inventory
supporting our growth
expectations; working capital in
days improved
Commentary
*Taking into account the LTM EBITDA of FragranceNet.com
20
Net debt development HY 2019
▪ HY 18 negative cash flow from
operating activities: € 48.2 M
▪ HY 19 only € 0.4 M. Investment
in inventory in 2019 set-of by
cash inflow from late Q4 2018
sales as indicated at FY18
▪ Dividend represents payment to
minority shareholders
FragranceNet.com
▪ Investing activities mainly
investment in software € 3.0 M
and logistical infrastructure €
7.1M
▪ Net debt excluding IFRS 16
Commentary
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Working capital development
▪ Inventory development (+14%) in line with business
development (+17.1%)
▪ Trade receivables in line with business development
▪ Increase in trade payables is fully in line with the increase in
turnover and inventory
Commentary
Trade payables
Working capital
(days)
Inventory
(days)
Trade receivables
(days)
112.6 79.2
512.7
(100)
460.3
(107)
431.9
(98)
379.0
(103)
193.4
(38)
160.5
(37)
HY 2019 HY 2018(€ x 1,000)
1,300.0
1,500.0
1,700.0
1,900.0
2,100.0
300.0
350.0
400.0
450.0
500.0
550.0
2016 HY 2016 FY 2017 HY 2017 FY 2018 HY 2018 FY 2019 HY
WC Turnover
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Outlook
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Outlook
Management focus
▪ Expanding e-commerce
platform business
▪ Integration of Lagaay into B&S
Segment
▪ Capturing further opportunities
for organic growth
Expectations H2 and beyond
▪ Strong H2 in Health & Beauty with new business opportunities in B2B
distribution to value retailers and e-commerce platforms
▪ Demand in online B2C business of FragranceNet.com continues to grow
▪ Seasonality further amplified and continued trend in sales shifting to late Q4
▪ Turnover growth and - over time - profitability at stable margins in B&S
Segment by serving volume contracts in a cost-efficient way
▪ Lagaay expected to contribute to maritime and remote business in B&S
segment
▪ New shop openings to contribute to turnover and profitability in Retail
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Appendices
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Our balance as at December 31, 2018
Net debt to be seen
in combination
with/as part of WC
76% of assets = WC
High turnaround
inventory and AR =
high turn-around
Net debt
IFRS 16 and
Options
following Fnet
acq ≠ Net Debt
Other current assets; 29.4
Accounts receivable; 205.7
Inventory; 377.9
Non-current assets; 157.3
Other current liabilities; 93.7
Trade payables; 90.8
Net Debt; 312.7
Equity; 273.1
Assets Equity and Liabilities
AR 27%
Inventory49%
Other24%
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Effects of prepayment to suppliers
INCREASED
INVENTORY
POSITION
Inventory already
recognised at balance
during transit
ACCOUNTS PAYABLE
REPLACED BY BANK
DEBT
AP days low compared to
‘classic’ distributor model
PRODUCTS
AVAILABLE
AT BEST PRICES
Competitive
advantage
in the market
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Our balance as at December 31, 2018
Other current assets; 29.4
Accounts receivable; 205.7
Inventory; 377.9
Non-current assets; 157.3
Other current liabilities; 93.7
Trade payables; 246.7
Net Debt; 156.8
Equity; 273.1
Assets Equity and Liabilities
Other current assets; 29.4
Accounts receivable; 205.7
Inventory; 377.9
Non-current assets; 157.3
Other current liabilities; 93.7
Trade payables; 90.8
Net Debt; 312.7
Equity; 273.1
Assets Equity and Liabilities
Net debt/EBITDA 2.9 | Days WC 103 Net debt/EBITDA 1.4 | Days WC 70
Accounts payable at 60 daysAccounts payable as is
OR
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Working capital development
WC
€ mln
Turnover
€ mln
600
800
1,000
1,200
1,400
1,600
1,800
2,000
60
110
160
210
260
310
360
410
460
510
560
1612 1703 1706 1709 1712 1803 1806 1809 1812 1903Accounts receivable Inventory Accounts payable Working capital
Turnover LTM Linear (Working capital) Linear (Turnover LTM)
Start of
inventory
build-up
Peak
following
seasonal
sales
29
Managing
our portfolio
1
2
3
4
Controls proven to be effective
Provision for doubtful debt (as %
of turnover)
2016: 0.12%
2017: 0.08%
2018: 0.06%
Extensive KYC procedures
All debtors insured or payment
guaranteed by other means
IT controls on credit limits
Dashboards to follow our
portfolio real time
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Managing
our inventory
1
2
3
4
Controls proven to be effective
Write down (as % of turnover)
2016: 0.32%
2017: 0.29%
2018: 0.19%
Sourcing worldwide and building
up inventory for seasonal sales
Dedicated departments with
category management
Mainly A-brands with limited
exposure to economic hardship
Weekly KPI reporting for tracking
developments
31
Our balance as at December 31, 2018
Balance sheet
remained solid post
FragranceNet
acquisition
WC forms main part
of asset side
balance sheet
Inventories and
receivables partly
financed by debt
As result of M&A price
discipline, goodwill on
balance sheet limited
(€ 59.9 M)
Other current assets; 29.4
Accounts receivable; 205.7
Inventory; 377.9
Non-current assets; 157.3
Other current liabilities; 184.5
Net Debt; 312.7
Equity; 273.1
A SSETS EQUITY A ND L IA BIL IT IES
Healthy
positions with
high
turnaround
and cash
generation
32
Net debt development 2018
*After dividend distribution
Acq.
Topbrands
174.1
Increase of 12.1%
Turnover +12.5%
Increase of 16.3%
Turnover +16.8%
30.4
33
Tax position explained
Expectations 2019
Delay of tax decrease in Netherlands to 2020 (22.55%)
No significant change in composition of result expected
January 1, 2018
Transfer pricing agreement for all 100% group companies worldwide
Januari 1,
2018
December
31, 2018
2018
Expected tax charge: 19%
Actual tax charge: 21%
Result of:
▪ Increased contribution of Topbrands and JTG to result however taxed
at 25%
▪ FragranceNet taxed at 28%
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Forward-looking information / disclaimer
This presentation includes forward-looking statements. Other than reported financial results and historical information, all
statements included in this presentation, including, without limitation, those regarding our financial position, business strategy and
management plans and objectives for future operations, are, or may be deemed to be, forward-looking statements. These forward-
looking statements may be identified by the use of forward-looking terminology, including the terms ''believes'', ''estimates'',
''plans'', ''projects'', ''anticipates'', ''expects'', ''intends'', ''may'', ''will'' or ''should'' or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions.
These forward-looking statements are based on our current expectations and projections about future events and are subject to
risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.
Many of these risks and uncertainties relate to factors that are beyond B&S Group’s ability to control or estimate precisely, such as
future market conditions, the behaviour of other market participants and the actions of governmental regulators. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation
and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on
which our securities may be traded, we have no intention or obligation to update forward-looking statements.
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