Financial Data and Key Metrics Changes - The company achieved remarkable revenue growth of 20% in fiscal 2023, with fourth-quarter growth of 22% [14][116] - Gross profit margin for fiscal 2023 was 62.1%, up 180 basis points compared to fiscal 2022, although it slightly decreased by 20 basis points when adjusting for prior year effects [14][15] - Adjusted EBITDA for fiscal 2023 was EUR 483 million, up 11% compared to fiscal 2022, with an adjusted EBITDA margin of 32.4% [18][117] - Pro forma fully diluted adjusted earnings per share for fiscal 2023 were EUR 1.10, representing growth of 19% [20] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenues grew by 26% in fiscal 2023, significantly outperforming B2B growth [32] - In the fourth quarter, revenues increased by 40%, primarily driven by a strong B2B quarter with 73% growth [33] - DTC revenue growth in Europe was 24%, significantly outperforming B2B, which saw 15% growth [46][44] Market Data and Key Metrics Changes - The Americas region achieved a revenue growth of 20% in fiscal 2023, making it the largest contributor to overall revenue growth [119] - The APMA segment showed the highest growth rates of all segments in fiscal 2023 with 27% [49] - In Europe, fiscal 2023 revenues increased by 18%, with DTC penetration reaching 40% [42][117] Company Strategy and Development Direction - The company aims to provide guidance on a full-year basis rather than quarterly, reflecting a long-term success strategy [27] - The company plans to invest approximately EUR 150 million in capital expenditures in fiscal 2024, primarily for production capacity expansion and global retail store expansion [30] - The company is focused on maintaining scarcity in the market to drive demand, with a disciplined approach to distribution [36][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong consumer demand for the brand and a unique position in the market [116][100] - The company anticipates modest headwinds to adjusted EBITDA margins in fiscal 2024 due to planned ramp-up costs and initial under-absorption [29] - Management noted that inflationary pressures were underestimated, impacting margins, but they remain confident in their pricing power [80][105] Other Important Information - The company achieved cash flow from operating activities of EUR 359 million, up 53% compared to the prior year [23] - The company has been actively deleveraging post-IPO, reducing leverage to below 2.5 [26] - The new factory in Pasewalk is expected to significantly increase production capacity, with benefits anticipated in fiscal 2024 and beyond [28][104] Q&A Session Summary Question: Clarification on fiscal 2024 revenue growth expectations - Management indicated that the fourth-quarter growth rate of 22% is a good indicator for early fiscal 2024 revenue growth, with a full-year guidance of 17% to 18% [12][27] Question: Insights on the new factory's impact on unit volume growth - Management confirmed that the new factory will enhance distribution and capacity, with benefits expected to materialize later in fiscal 2024 [12][28] Question: Discussion on land grabs in the U.S. market - Management explained that "land grabs" refer to aggressively capturing market share, particularly in challenging consumer spending environments [36] Question: Changes in U.S. consumer demand - Management noted that despite challenges, the demand for their products remains strong, with intentional purchasing patterns observed [64][83] Question: Regional growth expectations for fiscal 2024 - Management indicated that Europe and the Americas are growing at similar rates, while APMA is experiencing higher growth due to increased DTC penetration [79] Question: Insights on inventory levels and SKU performance - Management reported a decrease in inventory compared to revenue, with over 75% of inventory already allocated to customers [98]

[Fiscal Year 2023 Financial Results and 2024 Outlook](index=1&type=section&id=Fiscal%20Year%202023%20Financial%20Results%20and%202024%20Outlook) [Fiscal Year 2023 Performance Highlights](index=1&type=section&id=Fiscal%20Year%202023%20Performance%20Highlights) The company achieved strong 20% revenue growth to €1.492 billion, with healthy Adjusted Net Profit and EBITDA growth | Financial Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | €1.492 billion | €1.243 billion | +20% | | **Gross Profit Margin** | 62.1% | 60.3% | +180 bps | | **Net Profit** | €75 million | €187 million | -60% | | **EPS** | €0.41 | €1.02 | -60% | | **Adjusted Net Profit** | €207 million | €175 million | +18% | | **Pro-forma Adjusted EPS** | €1.10 | €0.93 | +18% | | **Adjusted EBITDA** | €483 million | €435 million | +11% | | **Adjusted EBITDA Margin** | 32.4% | 35.0% | -260 bps | | **Cash Flow from Operations** | €359 million | €234 million | +53% | [Detailed Financial Analysis for Fiscal Year 2023](index=2&type=section&id=Detailed%20Financial%20Analysis%20for%20Fiscal%20Year%202023) Revenue grew 20% to €1.492 billion, driven by unit and ASP increases, strong DTC channel performance, and robust operating cash flow [Revenue and Channel Performance](index=2&type=section&id=Revenue%20and%20Channel%20Performance) Revenue growth was driven by increased units and ASP, with DTC channel revenue growing 29% and reaching 40% of total revenue - Number of units sold increased by **6%**[2](index=2&type=chunk) - Average Selling Price (ASP) increased by **14%**[2](index=2&type=chunk) - The Direct-to-Consumer (DTC) channel showed strong performance, with revenue increasing by **29%** on a constant currency basis. This led to DTC penetration expanding by **200 basis points** to **40%** of total revenue[2](index=2&type=chunk) [Profitability and Earnings](index=2&type=section&id=Profitability%20and%20Earnings) Net Profit decreased to €75 million, but Adjusted Net Profit grew to €207 million, and Adjusted EBITDA increased by 11% to €483 million | Profitability Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net Profit** | €75 million | €187 million | | **Adjusted Net Profit** | €207 million | €175 million | | **EPS** | €0.41 | €1.02 | | **Pro-forma Adjusted EPS** | €1.10 | €0.93 | | **Adjusted EBITDA** | €483 million | €435 million | | **Adjusted EBITDA Margin** | 32.4% | 35.0% | [Cash Flow and Capital Structure](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Structure) Operating cash flow increased 53% to €359 million, fully covering €101 million in capex, and post-IPO debt repayment reduced net leverage below 2.5x - Cash flows from operating activities increased by **53%** to €359 million, driven by strong operational performance and lower inventory buildup compared to FY 2022[4](index=4&type=chunk) - Capital expenditures of €101 million, primarily for production capacity expansion, were completely covered by operating cash flows[5](index=5&type=chunk) - Post-IPO, the company utilized proceeds and existing cash to repay **USD 450 million** and **EUR 100 million** of debt, reducing net leverage to **below 2.5 times**[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) All geographic segments reported double-digit constant currency revenue growth, with Americas at 20%, Europe at 18%, and APMA leading at 27% | Region | Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | | **Americas** | 21% | 20% | | **Europe** | 18% | 18% | | **APMA** | 24% | 27% | - The APMA region's high growth was primarily driven by acceleration in the key strategic markets of China and India[6](index=6&type=chunk) [Fourth Quarter (Q4) 2023 Performance](index=2&type=section&id=Fourth%20Quarter%20(Q4)%202023%20Performance) Q4 2023 revenues grew 16% reported and 22% constant currency, with Americas B2B revenue surging 73% constant currency - Q4 2023 revenues grew by **16%** on a reported basis and **22%** on a constant currency basis compared to Q4 2022[7](index=7&type=chunk) - The Americas segment reported the highest growth in Q4, with B2B revenues in the region growing **61%** (reported) and **73%** (constant currency)[7](index=7&type=chunk) [Fiscal Year 2024 Outlook](index=3&type=section&id=Fiscal%20Year%202024%20Outlook) FY2024 outlook projects revenues of €1.74-€1.76 billion (17-18% growth), Adjusted EBITDA of €520-€530 million (30% margin), and €150 million in capex | Metric | FY 2024 Guidance | | :--- | :--- | | **Revenues (Constant Currency)** | €1.74 billion to €1.76 billion (+17% to +18% YoY) | | **Adjusted EBITDA (Constant Currency)** | €520 million to €530 million | | **Adjusted EBITDA Margin** | Approximately 30% | | **Capital Expenditure** | Approximately €150 million | | **Effective Tax Rate** | Approximately 30% | - The Adjusted EBITDA margin is expected to face a modest headwind due to planned ramp-up costs and initial underabsorption at the new Pasewalk facility[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Profit (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Profit%20(Loss)) Revenue grew to €1.492 billion, but net profit declined to €75 million due to higher operating expenses and €107 million in net finance costs | (In thousands of Euros) | Year ended Sep 30, 2023 | Year ended Sep 30, 2022 | | :--- | :--- | :--- | | **Revenue** | 1,491,911 | 1,242,833 | | **Gross profit** | 925,793 | 749,802 | | **Profit from operations** | 260,688 | 363,027 | | **Finance cost, net** | (107,036) | (112,503) | | **Profit before tax** | 153,652 | 250,524 | | **Net profit** | 75,022 | 187,111 | | **EPS (Basic)** | 0.41 | 1.02 | [Consolidated Statements of Financial Position](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets were €4.83 billion, with shareholders' equity at €2.40 billion and liabilities at €2.43 billion, including significant intangible assets | (In thousands of Euros) | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Total non-current assets** | 3,746,924 | 3,828,721 | | **Total current assets** | 1,080,546 | 959,906 | | **Total assets** | 4,827,470 | 4,788,627 | | **Total shareholders' equity** | 2,400,589 | 2,357,818 | | **Total non-current liabilities** | 2,048,300 | 2,106,843 | | **Total current liabilities** | 378,581 | 323,966 | | **Total liabilities** | 2,426,881 | 2,430,809 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to €359 million, while investing activities used €101 million and financing activities used €199 million | (In thousands of Euros) | Year ended Sep 30, 2023 | Year ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | 358,733 | 234,136 | | **Net cash used in investing activities** | (100,732) | (71,646) | | **Net cash used in financing activities** | (199,285) | (105,317) | | **Net increase in cash** | 58,716 | 57,173 | | **Cash at end of period** | 344,408 | 307,078 | [Reconciliation of Non-IFRS Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-IFRS%20Financial%20Measures) [Reconciliation of Revenue](index=7&type=section&id=Reconciliation%20of%20Revenue) FY2023 total revenue grew 20% to €1.492 billion, with DTC channel growing 29% and APMA region leading with 27% constant currency growth | FY 2023 Revenue Growth vs FY 2022 | Growth (%) | Constant Currency Growth (%) | | :--- | :--- | :--- | | **B2B Channel** | 15% | 15% | | **DTC Channel** | 28% | 29% | | **Total Revenue** | 20% | 20% | | **AMERICAS Region** | 21% | 20% | | **EUROPE Region** | 18% | 18% | | **APMA Region** | 24% | 27% | [Reconciliation of Net Profit (Adjusted)](index=8&type=section&id=Reconciliation%20of%20Net%20Profit%20(Adjusted)) IFRS Net Profit of €75 million is adjusted for FX, IPO costs, and share-based compensation, resulting in an Adjusted Net Profit of €207 million | (In thousands of Euros) | Year ended Sep 30, 2023 | | :--- | :--- | | **Net profit** | 75,022 | | Add: Realized and unrealized FX losses | 36,056 | | Add: IPO-related costs | 30,603 | | Add: Share-based compensation | 65,394 | | Add: Other adjustments | 6,552 | | Less: Tax adjustment | (6,475) | | **Net profit (Adjusted)** | **207,152** | [Reconciliation of EBITDA (Adjusted)](index=9&type=section&id=Reconciliation%20of%20EBITDA%20(Adjusted)) Net Profit of €75 million is adjusted for tax, finance costs, D&A, and non-recurring items, yielding an Adjusted EBITDA of €483 million | (In thousands of Euros) | Year ended Sep 30, 2023 | | :--- | :--- | | **Net profit** | 75,022 | | Add: Income tax expense | 78,630 | | Add: Finance cost, net | 107,036 | | Add: Depreciation and amortization | 83,413 | | **EBITDA** | **344,101** | | Add: Adjustments (FX, IPO costs, etc.) | 138,605 | | **Adjusted EBITDA** | **482,706** | [Reconciliation of Gross Profit (Adjusted)](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit%20(Adjusted)) FY2023 reported Gross Profit of €926 million equals Adjusted Gross Profit, while FY2022 Adjusted Gross Profit was €774 million after adjustments - For fiscal year 2023, there were no adjustments to Gross Profit. Reported Gross Profit of **€925.8 million** equals Adjusted Gross Profit[27](index=27&type=chunk) - For fiscal year 2022, Gross Profit was adjusted by **€24.4 million** due to the accounting effect of the Transaction on inventory valuation, increasing Adjusted Gross Profit to **€774.2 million**[27](index=27&type=chunk)

Financial Performance - Total sales for the reportable segments reached €461.775 million, with Americas contributing €223.110 million, Europe €191.226 million, and APMA €47.439 million[32]. - Adjusted EBITDA for the total reportable segments was €152.742 million, with a breakdown of €78.767 million from Americas, €61.649 million from Europe, and €12.326 million from APMA[32]. - The company reported a profit before tax of €(13.777) million, reflecting operational challenges and transaction-related costs[32]. - Cost of sales for the year ended September 30, 2023, was €566.1 million, up from €493.0 million in the previous year[138]. - Personnel costs rose to €153.9 million for the year ended September 30, 2023, compared to €119.3 million in the prior year[138]. - Shipping and handling costs for the fiscal year ended September 30, 2023, amounted to €155.2 million, up from €101.1 million in the previous fiscal year[89]. Acquisitions and Goodwill - The acquisition of the predecessor resulted in a total consideration transferred of €3.751 billion, with identifiable net assets valued at €2.223 billion, leading to goodwill of €1.528 billion[34]. - The company anticipates future growth potential, which is reflected in the goodwill recognized from acquisitions, primarily due to expected future growth and an assembled workforce[37]. - As of September 30, 2023, total goodwill is €1,593,917, a decrease from €1,674,293 in September 30, 2022, reflecting a foreign currency translation impact of €(80,376)[42]. Customer and Revenue Diversification - The company did not have any customers contributing 10% or more to total revenue during the reporting period, indicating a diversified customer base[33]. - As of September 30, 2023, the company had no concentration of receivables exceeding 10% with any single customer, minimizing credit risk[37]. - For the fiscal year ended September 30, 2023, sales through third parties in the B2B channel accounted for 60% of total revenues[81]. Inventory and Receivables - Total inventories as of September 30, 2023, amount to €595,092, an increase from €535,605 in September 30, 2022[48]. - Trade receivables increased to €91,694 as of September 30, 2023, compared to €64,604 in the previous year[49]. Capital Expenditures and Investments - The company invested in a new production facility in Pasewalk, Germany, which commenced operations in September 2023[46]. - The average CapEx investments for 2023-2027 are projected at €39,879, with significant investments planned for the Americas region[43]. Personnel and Operating Expenses - Personnel costs surged to €113,905 thousand in the year ended September 30, 2023, compared to €41,267 thousand in the previous year, an increase of 175.5%[66]. - The company has experienced a significant increase in general administration expenses, primarily due to share-based compensation related to IFRS 2, totaling €171.4 million for the fiscal year ended September 30, 2023[89]. Risks and Compliance - The company is exposed to liquidity risk but manages it by ensuring sufficient liquidity for operations and capital expenditures through operating cash flows and short-term borrowings[38]. - The company faces risks from potential disputes with third-party sales and distribution channels that could damage its brand and reputation[81]. - The company is subject to various privacy laws and regulations, which could lead to additional costs and operational impacts if compliance is not maintained[112]. - The company faces risks related to compliance with security standards for payment card information, which could lead to significant fines and impact its ability to accept payment cards[114]. Debt and Financial Obligations - The company reported a term loan in EUR valued at €375 million and a term loan in USD valued at $781.3 million as of September 30, 2023[102]. - The company has a vendor loan of €299.6 million and senior notes of €428.5 million as of September 30, 2023[102]. - As of November 30, 2023, the company had total indebtedness of €1,306.2 million, primarily from Senior Term Facilities, ABL Facility, Notes, and Vendor Loan[166]. Market and Economic Conditions - The company operates in various international markets, facing risks such as political instability, trade disputes, and economic fluctuations, which could materially impact its operations and financial results[121]. - The company is subject to evolving government regulations regarding internet and e-commerce, which could affect its operations and compliance costs[117]. - The company may face increased costs and operational disruptions due to climate change and extreme weather conditions affecting its supply chain[183]. Internal Controls and Governance - The company has identified two material weaknesses in internal control over financial reporting, one of which has been remediated as of September 30, 2023, while the second remains unremediated[210][211]. - The company is subject to Section 404 of the Sarbanes-Oxley Act, requiring a report on internal control effectiveness in its second annual report on Form 20-F[211]. Strategic Initiatives - The company has a balanced shift towards direct-to-consumer (DTC) channels, promoting direct relationships and capturing real-time customer data[220]. - The company operates a complementary multi-channel distribution strategy, optimizing growth and profitability through both DTC and B2B channels[220].