MYT Netherlands Parent B.V. (NYSE:MYTE) Q4 2022 Earnings Conference Call September 15, 2022 8:00 AM ET Company Participants Martin Beer - Chief Financial Officer Michael Kliger - Chief Executive Officer Conference Call Participants Matthew Boss - JPMorgan Oliver Chen - Cowen Kunal Madhukar - UBS Abhinav Sinha - Societe Generale Lauren Schenk - Morgan Stanley Operator Greetings and welcome to Mytheresa Fourth Quarter and Full Fiscal 2022 Earnings Conference Call. [Operator Instructions] Today???s call is bei ...

[Introduction](index=4&type=section&id=Introduction) [Presentation of Financial and Other Information](index=4&type=section&id=PRESENTATION%20OF%20FINANCIAL%20AND%20OTHER%20INFORMATION) The company's financial statements are prepared in Euros under IFRS, with a fiscal year ending June 30, and include definitions for key management performance indicators - The company's financial statements are prepared in accordance with **IFRS**, not U.S. GAAP, and are presented in **Euros**[10](index=10&type=chunk) - The company's fiscal year runs from **July 1 to June 30**[12](index=12&type=chunk) - Key performance indicators are defined, including non-IFRS measures like **Adjusted EBITDA, Adjusted Net Income, and Adjusted Operating Income**, which exclude items such as IPO-related costs and certain tax expenditures[14](index=14&type=chunk)[16](index=16&type=chunk) [Special Note Regarding Forward-Looking Statements](index=6&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section warns that forward-looking statements in the report are subject to significant risks and uncertainties, meaning actual results may differ materially from projections - The report includes **forward-looking statements** that involve **risks and uncertainties**, and actual results may **differ materially** from projections[19](index=19&type=chunk)[21](index=21&type=chunk) - Key risks highlighted include **industry competition**, changes in **consumer demand and tastes**, the impact of **health epidemics** like COVID-19, and the ability to maintain **brand image** and customer relationships[22](index=22&type=chunk) [Risk Factor Summary](index=7&type=section&id=RISK%20FACTOR%20SUMMARY) This section summarizes the company's principal risks, including intense industry competition, reliance on discretionary spending, operational disruptions, and currency fluctuations - The company operates in a **highly competitive industry** and its success depends on effectively **managing growth, inventory, and currency fluctuations**[26](index=26&type=chunk)[30](index=30&type=chunk) - Business is subject to risks from **consumer discretionary spending**, which can be affected by **economic downturns, geopolitical events, and inflation**[27](index=27&type=chunk) - Operational risks include potential disruptions at its **single distribution facility**, **cybersecurity threats** to sensitive customer data, and reliance on **key senior management**[30](index=30&type=chunk) [PART I](index=9&type=section&id=PART%20I) [Item 3: Key Information](index=9&type=section&id=Item%203%3A%20Key%20Information) This section details significant investment risks, encompassing business, industry, technology, legal, regulatory, and corporate structure challenges, particularly in the online luxury sector [D. Risk Factors](index=9&type=section&id=D.%20Risk%20Factors) This subsection comprehensively outlines material business risks, categorized by industry, technology, legal, regulatory, tax, and corporate structure, including competition, data privacy, and tax residency issues - The online luxury sector is **highly competitive**, with competition from global multi-brand retailers, mono-brand retailers, and large e-commerce platforms like Amazon[37](index=37&type=chunk)[40](index=40&type=chunk) - The business is **highly dependent on discretionary spending** by affluent customers, which can be negatively impacted by economic downturns, inflation, and geopolitical events like the war in Ukraine[66](index=66&type=chunk) - A significant portion of sales comes from a small group of top customers; in fiscal 2022, the **top 3.1% of customers** accounted for approximately **35% of gross sales**[55](index=55&type=chunk) - The company relies on a **single distribution facility** in Heimstetten, Germany, making it vulnerable to disruptions[92](index=92&type=chunk) - The business is subject to **complex and evolving data privacy regulations** globally, including GDPR in Europe, CCPA in California, and PIPL in China, which increase operating costs and compliance risks[138](index=138&type=chunk)[139](index=139&type=chunk)[146](index=146&type=chunk) - As a Dutch-incorporated company with its place of effective management in Germany, the company faces **complex tax residency issues** that could be challenged by tax authorities, potentially leading to **double taxation** or denial of treaty benefits[232](index=232&type=chunk) [Item 4: Information on the company](index=47&type=section&id=Item%204%3A%20Information%20on%20the%20company) This section provides a detailed overview of Mytheresa's business, covering its history, corporate structure, and physical properties, highlighting its position as a leading global luxury e-commerce platform and its growth strategies [A. History and development of the company](index=47&type=section&id=A.%20History%20and%20development%20of%20the%20company) MYT Netherlands Parent B.V. is a Dutch holding company, with its primary business operations conducted through its German subsidiary, Mytheresa Group GmbH - MYT Netherlands Parent B.V. is a **Dutch holding company**, with its principal business conducted through its **German subsidiary**, Mytheresa Group GmbH[236](index=236&type=chunk)[237](index=237&type=chunk) [B. Business Overview](index=48&type=section&id=B.%20Business%20Overview) Mytheresa is a global luxury e-commerce platform offering a curated selection from over 200 brands, targeting high-income consumers with strategies focused on customer acquisition, category expansion, and brand partnerships - Mytheresa offers a curated selection from **over 200 luxury brands**, including Bottega Veneta, Gucci, and Prada, shipping to **over 130 countries**[239](index=239&type=chunk) - The company targets **high-income, time-constrained professionals**, with the **top 3% of customers** generating approximately **35% of GMV** in fiscal 2022[240](index=240&type=chunk) Key Business Metrics (Fiscal 2022) | Metric | Value | Source Chunk | | :--- | :--- | :--- | | Average Order Value | €626 | [241] | | Active Customers | 781,000 (+16.4% YoY) | [246] | | Net Sales | €689.8 million (+12.7% YoY) | [246] | | GMV | €747.3 million (+21.3% YoY) | [246] | | Mobile App Installs | ~5.3 million | [243] | | Mobile Share of GMV | 50% | [243] | - Growth strategies include profitably **acquiring new customers**, **expanding wallet share** with existing customers, and accessing **new categories** such as Mytheresa Kids (launched 2019), Mytheresa Men (launched 2020), and Mytheresa Life (launched 2022)[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) [D. Property, Plant and Equipment](index=57&type=section&id=D.%20Property%2C%20Plant%20and%20Equipment) The company's facilities include corporate headquarters in Aschheim, a primary fulfillment center in Heimstetten, a new larger center in Leipzig, and retail stores in Munich Key Company Facilities | Location | Type | Square Meters | | :--- | :--- | :--- | | Aschheim, Germany | Corporate Headquarters | 9,830 | | Heimstetten, Germany | Fulfillment Center | 16,970 | | Leipzig, Germany | Fulfillment Center | 54,550 | | Munich, Germany | Retail Stores | 1,727 (total) | [Item 5: Operating and financial review and prospects](index=57&type=section&id=Item%205%3A%20Operating%20and%20financial%20review%20and%20prospects) This section analyzes the company's financial performance and condition, detailing operating results, non-IFRS measures, liquidity, and capital resources, highlighting growth drivers like active customers and the Curated Platform Model [A. Operating Results](index=63&type=section&id=A.%20Operating%20Results) In fiscal 2022, net sales grew 12.7% to €689.8 million, with gross profit increasing 23.7% to €355.0 million and Adjusted EBITDA rising 20.7% to €66.3 million, driven by active customer growth and the Curated Platform Model Consolidated Results of Operations (in € thousands) | Metric | FY 2021 | FY 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | 612,096 | 689,750 | 12.7% | | Gross profit | 287,043 | 354,992 | 23.7% | | Operating income (loss) | (32,162) | 4,834 | N/A | | Net income (loss) | (32,604) | (7,898) | 75.8% | Key Non-IFRS Financial Metrics (in € millions) | Metric | FY 2021 | FY 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 54.9 | 66.3 | 20.7% | | Adjusted Operating Income | 46.7 | 57.2 | 22.6% | | Adjusted Net Income | 32.1 | 44.5 | 38.6% | - The gross profit margin increased to **51.5%** in FY2022 from **46.9%** in FY2021, primarily driven by the increasing share of revenue from the **Curated Platform Model (CPM)**, which does not incur cost of sales for the company[331](index=331&type=chunk) - Selling, general and administrative (SG&A) expenses **decreased to €148.2 million** in FY2022 from €157.2 million in FY2021, mainly due to **lower IPO-related share-based compensation expenses** (€49.9 million in FY22 vs. €71.9 million in FY21)[341](index=341&type=chunk) Net Sales by Geographic Location (FY 2022) | Region | Net Sales (€ thousands) | % of Total | | :--- | :--- | :--- | | Germany | 128,616 | 18.6% | | United States | 108,748 | 15.8% | | Europe (ex-Germany) | 276,110 | 40.0% | | Rest of the world | 176,277 | 25.6% | [B. Liquidity and Capital Resources](index=71&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from cash operations and €60 million in credit facilities, with cash and equivalents at €113.5 million as of June 30, 2022, and improved operating cash flow in fiscal 2022 - Primary liquidity sources are cash from operations and **€60 million** in revolving credit facilities[369](index=369&type=chunk)[370](index=370&type=chunk) - Cash and cash equivalents were **€113.5 million** as of June 30, 2022[371](index=371&type=chunk) Summary Consolidated Cash Flow (in € thousands) | Activity | FY 2021 | FY 2022 | | :--- | :--- | :--- | | Net cash from operating activities | (16,486) | 54,840 | | Net cash from investing activities | (2,894) | (11,923) | | Net cash from financing activities | 86,790 | (6,095) | - In January 2021, the company fully **repaid its Fixed Rate Shareholder Loans** using proceeds from its IPO, resulting in a cash outflow of **€170.0 million**[375](index=375&type=chunk) [Item 6. Directors and Senior Management](index=74&type=section&id=Item%206.%20Directors%20and%20Senior%20Management) This section details the company's two-tier board structure, including the Management and Supervisory Boards, their compensation, committee compositions, and employee information - The company has a **two-tiered board structure** with a Management Board for day-to-day operations and a Supervisory Board for oversight[444](index=444&type=chunk) - Total compensation for the Management Board in fiscal 2022 was **€43.7 million**, which includes significant share-based compensation expenses[414](index=414&type=chunk) - As of June 30, 2022, the company had **1,238 employees** (1,196.7 FTEs), an increase from the previous year, with the majority located in Germany[466](index=466&type=chunk) - The Supervisory Board has two main committees: an **Audit Committee** and a **Nominating, Governance and Compensation Committee**[461](index=461&type=chunk) [Item 7: Major shareholders and related party transactions](index=87&type=section&id=Item%207%3A%20Major%20shareholders%20and%20related%20party%20transactions) This section discloses major shareholders, with MYT Holding LLC owning 76.9% of outstanding shares, and details related party transactions with the ultimate parent company Major Shareholders as of June 30, 2022 | Name of Beneficial Owner | Number of Shares | Percentage | | :--- | :--- | :--- | | MYT Holding LLC | 66,381,495 | 76.9% | | All members of Supervisory and Management Boards (as a group) | 1,714,494 | 2.0% | - As of June 30, 2022, the company had a **receivable of €213 thousand** from and **liabilities of €838 thousand** to its ultimate parent, MYT Ultimate Parent LLC, from various intercompany charges[476](index=476&type=chunk) [Item 8. Financial Information](index=89&type=section&id=Item%208.%20Financial%20Information) This section confirms financial statements are in Item 18, states no material legal proceedings, and outlines a dividend policy of retaining earnings for growth, subject to board approval and credit covenants - The company does **not anticipate paying dividends** in the foreseeable future, intending to **retain earnings for business growth**[480](index=480&type=chunk) - The company is a holding company and its ability to pay dividends depends on cash distributions from its operating subsidiaries, which are **restricted by credit facility covenants**[482](index=482&type=chunk) [Item 10. Additional Information](index=90&type=section&id=Item%2010.%20Additional%20Information) This section provides supplementary information, including articles of association, material contracts, exchange controls, and a detailed summary of tax consequences for shareholders in Germany, the Netherlands, and the United States - The company is **tax resident in Germany** due to its place of effective management being there, making it subject to German corporate income and trade taxes[499](index=499&type=chunk)[500](index=500&type=chunk) - Dividends are generally subject to a **26.375% German withholding tax**, which may be **reduced to 15%** for U.S. treaty beneficiaries upon application for a refund[518](index=518&type=chunk)[519](index=519&type=chunk) - While currently exempt, there is a risk that **Dutch dividend withholding tax** could apply in the future, especially after a protocol amending the Germany-Netherlands tax treaty becomes effective in 2023[554](index=554&type=chunk) - For U.S. holders, the company does not expect to be treated as a **Passive Foreign Investment Company (PFIC)**, but this is an annual determination and cannot be guaranteed[587](index=587&type=chunk) [Item 11. Quantitative and qualitative Disclosures About Market Risk](index=109&type=section&id=Item%2011.%20Quantitative%20and%20qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's market risk exposure, primarily interest rate and foreign exchange risk, which is mitigated through hedging contracts for sales in multiple currencies - Interest rate risk is considered **not significant** due to the short-term nature of cash instruments and immaterial interest expense[603](index=603&type=chunk) - The company is exposed to **foreign exchange risk** from sales in currencies like the **U.S. Dollar and Pound Sterling**, while most costs are in Euros[604](index=604&type=chunk) - This risk is managed through **hedging contracts** with durations of less than one year[605](index=605&type=chunk) [PART II](index=110&type=section&id=PART%20II) [Item 15. Controls and Procedures](index=111&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 30, 2022, with a previously identified material weakness successfully remediated - Management concluded that both disclosure controls and procedures, and internal control over financial reporting, were **effective as of June 30, 2022**[615](index=615&type=chunk)[616](index=616&type=chunk) - A **material weakness** identified in a prior period was **remediated in Q3 FY2022** by enhancing the risk assessment process and controls related to the Curated Platform Model[619](index=619&type=chunk)[620](index=620&type=chunk)[621](index=621&type=chunk) [Item 16G. Corporate Governance](index=113&type=section&id=Item%2016G.%20Corporate%20Governance) As a foreign private issuer, the company follows Dutch corporate governance practices, with disclosed deviations from NYSE requirements, particularly regarding Supervisory Board independence and share-based remuneration - The company follows **Dutch corporate governance practices**, which **differ from NYSE standards**, particularly regarding board independence definitions[631](index=631&type=chunk)[633](index=633&type=chunk) - A key deviation from the Dutch Corporate Governance Code is that **four of the eight Supervisory Board members are not considered independent under Dutch rules** due to their affiliation with major shareholders or prior management roles, though they are considered independent under NYSE/SEC rules[637](index=637&type=chunk) - Supervisory Board members receive **share-based remuneration**, a common practice for U.S. listed companies but a **deviation from the Dutch code**, intended to align their interests with shareholders[642](index=642&type=chunk) [PART III](index=115&type=section&id=PART%20III) [Item 18. Financial Statements](index=115&type=section&id=Item%2018.%20Financial%20Statements) This section presents the company's audited consolidated financial statements for fiscal year 2022, prepared under IFRS, including the report from KPMG AG and all primary financial statements with detailed notes Consolidated Statement of Financial Position (in € thousands) | | June 30, 2021 | June 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **521,941** | **614,776** | | Total Current Assets | 343,335 | 413,801 | | Total Non-Current Assets | 178,606 | 200,975 | | **Total Shareholders' Equity and Liabilities** | **521,941** | **614,776** | | Total Shareholders' Equity | 385,718 | 431,667 | | Total Liabilities | 136,223 | 183,109 | Consolidated Statement of Profit or Loss (in € thousands) | | FY 2021 | FY 2022 | | :--- | :--- | :--- | | Net sales | 612,096 | 689,750 | | Gross profit | 287,043 | 354,992 | | Operating income (loss) | (32,162) | 4,834 | | Net income (loss) | (32,604) | (7,898) | | Basic and diluted EPS (€) | (0.42) | (0.09) | Consolidated Statement of Cash Flows (in € thousands) | Activity | FY 2021 | FY 2022 | | :--- | :--- | :--- | | Net cash from operating activities | (16,486) | 54,840 | | Net cash from investing activities | (2,894) | (11,923) | | Net cash from financing activities | 86,790 | (6,095) | | Net change in cash | 67,411 | 36,822 | | Cash at end of period | 76,760 | 113,507 |

Exhibit 99.1 Q4 and Full FY22 Results: Mytheresa accelerates growth in Q4 and concludes the full fiscal year with a GMV growth of 21.3%, a two-year GMV growth of 66.3% and a record profitability of 9.6% Adjusted EBITDA margin MUNICH, Germany (September 15, 2022) – MYT Netherlands Parent B.V. (NYSE: MYTE) ("Mytheresa" or the "Company"), the parent company of Mytheresa Group GmbH, today announced financial results for its fourth quarter and full fiscal year 2022 ended June 30, 2022. The luxury multi-brand dig ...

MYT Netherlands Parent B.V. (NYSE:MYTE) Q3 2022 Earnings Conference Call May 10, 2022 8:00 AM ET Company Participants Martin Beer - Chief Financial Officer Michael Kliger - CEO Conference Call Participants Matthew Boss - JPMorgan Michael Binetti - Credit Suisse Oliver Chen - Cowen Kunal Madhukar - UBS Geoffroy De Mendez - Bank of America Abhinav Sinha - Societe Generale Operator Greetings, and welcome to Mytheresa Third Quarter Fiscal 2022 Earnings Conference Call [Operator Instructions]. Today's call is be ...

Isabel to provide new picture Investor Presentation May 2022 Legal Disclaimer Forward Looking Statements & Industry Information This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this presentation are forward- looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condit ...

[Financial Results and Key Operating Metrics](index=3&type=section&id=FINANCIAL%20RESULTS%20AND%20KEY%20OPERATING%20METRICS) This section provides an overview of the company's financial performance and key operational indicators for the reporting period [Key Operating and Financial Metrics](index=3&type=section&id=Key%20Operating%20and%20Financial%20Metrics) The company reported strong nine-month growth in GMV and active customers, with improved gross profit margin, but Q3 showed moderated growth and an Adjusted EBITDA decrease Key Operating and Financial Metrics (Three and Nine Months Ended March 31, 2022) | Metric | Three Months Ended Mar 31, 2022 | YoY Change | Nine Months Ended Mar 31, 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Gross Merchandise Value (GMV)** | €186.6M | 13.2% | €550.6M | 22.4% | | **Active Customers (LTM)** | 755k | 21.6% | 755k | 21.6% | | **Total Orders Shipped (LTM)** | 1,703k | 23.1% | 1,703k | 23.1% | | **Net Sales** | €169.5M | 2.9% | €514.9M | 14.5% | | **Gross Profit Margin** | 48.8% | +490 BPs | 50.5% | +390 BPs | | **Adjusted EBITDA** | €10.2M | (8.1%) | €52.6M | 20.2% | | **Adjusted Net Income** | €5.6M | 25.8% | €32.7M | 33.5% | [Reconciliation of Non-IFRS Measures](index=4&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section reconciles non-IFRS measures like Adjusted EBITDA and Net Income, primarily adjusting for IPO-related share-based compensation Reconciliation of Net Income to Adjusted EBITDA (€ millions) | Line Item | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net income | €(24.6) | €(9.5) | | Finance expenses, net | €(14.8) | €0.7 | | Income tax expense | €13.5 | €12.4 | | Depreciation and amortization | €6.1 | €6.7 | | **EBITDA** | **€(19.8)** | **€10.3** | | IPO preparation and transaction costs | €7.0 | €0.0 | | Other transaction-related costs | €0.0 | €1.3 | | IPO related share-based compensation | €56.6 | €40.9 | | **Adjusted EBITDA** | **€43.7** | **€52.6** | Reconciliation of Net Income to Adjusted Net Income (€ millions) | Line Item | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net Income | €(24.6) | €(9.5) | | IPO preparation and transaction costs | €7.0 | €0.0 | | Other transaction-related costs | €0.0 | €1.3 | | IPO related share-based compensation | €56.6 | €40.9 | | Finance expenses on shareholder loans | €(16.0) | €0.0 | | Income tax effect | €1.6 | €0.0 | | **Adjusted Net Income** | **€24.5** | **€32.7** | - IPO-related share-based compensation is a significant adjustment, totaling **€40.9 million** for the nine months ended March 31, 2022. The company does not consider these expenses indicative of core operating performance[15](index=15&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=6&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the company's unaudited interim condensed consolidated financial statements, including profit, financial position, and cash flows [Statements of Profit and Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Profit%20and%20Comprehensive%20Income) Net sales and gross profit increased for the nine months, leading to an operating income of **€3.6 million** and a narrowed net loss Consolidated Statement of Profit (Nine Months Ended March 31, € thousands) | Line Item | 2021 | 2022 | | :--- | :--- | :--- | | Net sales | 449,728 | 514,914 | | Gross profit | 209,614 | 260,199 | | Operating income | (25,925) | 3,574 | | Net income (loss) | (24,621) | (9,546) | | Basic & diluted EPS | €(0.33) | €(0.11) | [Statements of Financial Position](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to **€569.8 million** as of March 31, 2022, driven by higher cash and equity, while inventories decreased Consolidated Statement of Financial Position (€ thousands) | Line Item | June 30, 2021 | March 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **521,941** | **569,761** | | Cash and cash equivalents | 76,760 | 93,527 | | Inventories | 247,054 | 226,117 | | **Total Liabilities** | **136,223** | **151,800** | | **Total Shareholders' Equity** | **385,718** | **417,961** | [Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated **€22.9 million** in cash, a significant improvement driven by inventory management and non-cash expenses, increasing cash and cash equivalents Consolidated Statement of Cash Flows (Nine Months Ended March 31, € thousands) | Line Item | 2021 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | (39,751) | 22,907 | | Net cash (used in) investing activities | (1,511) | (1,702) | | Net cash (used in) provided by financing activities | 87,922 | (4,400) | | **Net increase (decrease) in cash** | **46,659** | **16,806** | - The positive shift in operating cash flow was largely due to a **€20.9 million** cash inflow from decreased inventories, compared to a **€63.4 million** outflow from increased inventories in the prior year[32](index=32&type=chunk) [Notes to the Financial Statements](index=11&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, external impacts like the Ukraine war, the Curated Platform Model, segment performance, and significant share-based compensation [Impacts from External Factors (Note 3)](index=12&type=section&id=Impacts%20to%20the%20consolidated%20financial%20statements%20due%20to%20Covid-19%20pandemic%2C%20cost%20inflation%2C%20sanctions%20on%20Russia%20and%20war%20in%20Ukraine) External factors like the war in Ukraine, sanctions, and COVID-19 effects moderated Q3 growth and impacted customer sentiment - The company experienced lower growth in net sales in Q3 2022 compared to the prior year, partially due to the war in Ukraine, sanctions on Russia, and COVID-related effects in Asia, which affected customer sentiment[49](index=49&type=chunk) - Mytheresa has stopped all services to Russia, Belarus, and Ukraine; however, direct business impact from sanctions was not significant due to no major operations in Russia[49](index=49&type=chunk) - To date, the company has not incurred significant supply chain or logistics disruptions with its brand partners or shipping providers[44](index=44&type=chunk) [Significant Accounting Policies (Note 4)](index=13&type=section&id=Significant%20accounting%20policies) The company introduced the Curated Platform Model (CPM), recognizing revenue on a net commission basis when goods are delivered - The company introduced the Curated Platform Model (CPM), where it acts as an agent for brand partners, recognizing revenue on a net basis for the agreed-upon commission when goods are delivered to the end customer[52](index=52&type=chunk)[54](index=54&type=chunk) [Segment Information (Note 6)](index=14&type=section&id=Segment%20information) The online segment generated the vast majority of net sales and EBITDA, significantly outperforming retail stores Segment Performance (Nine Months Ended March 31, 2022, € thousands) | Segment | Net Sales | EBITDA | | :--- | :--- | :--- | | Online | 503,371 | 64,827 | | Retail Stores | 11,543 | 3,502 | | **Total Segments** | **514,914** | **68,330** | [Geographic Information (Note 7)](index=16&type=section&id=Net%20Sales%20and%20geographic%20information) The United States emerged as a key growth market, increasing its share of net sales to **15.8%** for the nine-month period Net Sales by Geographic Location (Nine Months Ended March 31) | Region | 2021 Sales (€ thousands) | 2021 % of Total | 2022 Sales (€ thousands) | 2022 % of Total | | :--- | :--- | :--- | :--- | :--- | | Germany | 84,468 | 18.8% | 95,712 | 18.6% | | United States | 54,378 | 12.1% | 81,578 | 15.8% | | Europe (ex-Germany) | 187,486 | 41.7% | 206,035 | 40.0% | | Rest of the world | 123,396 | 27.4% | 131,589 | 25.6% | | **Total** | **449,728** | **100.0%** | **514,914** | **100.0%** | [Share-Based Compensation (Note 13)](index=18&type=section&id=Share-based%20compensation) Share-based compensation expense totaled **€42.7 million**, primarily from IPO award packages granted to key management - The company recognized a total share-based compensation expense of **€42.7 million** for the nine months ended March 31, 2022, primarily related to IPO award packages granted in January 2021[98](index=98&type=chunk) - The IPO-related awards consist of an **Alignment Grant** of **6.5 million** share options and a **Restoration Grant** of **1.9 million** phantom shares granted to key management[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Management's Discussion and Analysis (MD&A)](index=25&type=section&id=MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition, results of operations, and factors influencing performance [Overview](index=26&type=section&id=Overview) Management attributes moderated Q3 growth to global luxury demand reduction from geopolitical events and COVID-19, while maintaining long-term growth forecasts - Management attributes lower GMV and net sales growth in Q3 2022 to reduced demand for luxury products due to the war in Ukraine, sanctions in Russia, and COVID-related effects in Asia[116](index=116&type=chunk) - Despite the Q3 slowdown, management states that the company's GMV growth forecast remains in-line with communicated mid and long-term growth targets[117](index=117&type=chunk) [Factors Affecting Performance](index=32&type=section&id=Factors%20Affecting%20our%20Performance) Performance is driven by economic trends, brand investment, luxury partner relationships, online shift, category expansion, inventory management, and the Curated Platform Model - Key performance drivers include: - Growth in brand awareness through marketing campaigns and events - Maintaining exclusive relationships with top luxury brands - Capturing the ongoing shift of luxury spending to online channels - Expanding newer categories such as Men's and Kidswear - Leveraging the Curated Platform Model (CPM) to improve capital efficiency and product access[134](index=134&type=chunk)[135](index=135&type=chunk)[138](index=138&type=chunk)[141](index=141&type=chunk) [Results of Operations Analysis](index=35&type=section&id=Results%20of%20Operations) Nine-month GMV grew **22.4%**, but net sales grew slower due to the CPM, which boosted gross profit margin to **50.5%**, while operating costs increased [Gross Merchandise Value (GMV)](index=36&type=section&id=Gross%20Merchandise%20Value%20(GMV)) GMV grew **22.4%** to **€550.6 million** for the nine months, driven by customer growth, despite a slower Q3 due to external issues - GMV grew **22.4%** to **€550.6 million** in the nine months ended March 31, 2022, driven by growth in active customers. Q3 growth was slower at **13.2%**, affected by geopolitical and pandemic-related issues[154](index=154&type=chunk) [Net Sales](index=36&type=section&id=Net%20sales) Net sales grew **14.5%** to **€514.9 million**, with slower growth compared to GMV due to the Curated Platform Model's net revenue recognition - Net sales for the nine months grew **14.5%** to **€514.9 million**. The slower growth rate compared to GMV is a direct result of switching brands to the Curated Platform Model (CPM), where revenue is recognized as a net platform fee rather than the full merchandise value[155](index=155&type=chunk) [Gross Profit](index=37&type=section&id=Gross%20profit) Gross profit margin significantly increased to **50.5%** for the nine-month period, primarily driven by the high-margin Curated Platform Model revenues - Gross profit margin for the nine-month period increased significantly to **50.5%** from **46.6%** year-over-year. This improvement was primarily driven by increasing CPM revenues, which generate a **100%** gross margin[158](index=158&type=chunk) [Shipping and Payment Costs](index=37&type=section&id=Shipping%20and%20payment%20costs) Shipping and payment costs increased to **12.8%** of GMV, mainly due to a higher share of international sales where the company covers customs duties - As a percentage of GMV, shipping and payment costs increased from **11.5%** to **12.8%** for the nine-month period, mostly due to a higher share of sales to countries where the company pays all customs duties for the customer, such as the US[159](index=159&type=chunk) [Selling, General & Administrative (SG&A) Expenses](index=38&type=section&id=Selling%2C%20general%20and%20administrative%20expenses) Total SG&A expenses decreased due to lower IPO-related share-based compensation, but adjusted SG&A increased as a percentage of GMV - Total SG&A expenses decreased due to lower IPO-related share-based compensation (**€40.9 million** in 9M 2022 vs. **€56.6 million** in 9M 2021)[165](index=165&type=chunk) - Adjusted SG&A (excluding IPO costs) as a percentage of GMV increased from **12.0%** to **12.5%** for the nine-month period, driven by higher personnel, insurance, and IT expenditures[166](index=166&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources include cash from operations and **€60 million** in revolving credit facilities, with **€93.5 million** cash and equivalents as of March 31, 2022 - As of March 31, 2022, the company held **€93.5 million** in cash and cash equivalents[178](index=178&type=chunk) - The company has access to **€60 million** in revolving credit facilities, which were unused as of March 31, 2022, and are deemed sufficient for future operating requirements[177](index=177&type=chunk)[180](index=180&type=chunk) [Cash Flow Analysis](index=41&type=section&id=Consolidated%20Statement%20of%20Cash%20Flow%20Data%3A) Operating activities generated **€22.9 million** in cash, a significant improvement driven by inventory reduction and non-cash compensation, contrasting with prior year's financing inflow Summary Consolidated Cash Flow (€ thousands) | Nine months ended March 31, | 2021 | 2022 | | :--- | :--- | :--- | | Net cash from operating activities | (39,751) | 22,907 | | Net cash from investing activities | (1,511) | (1,702) | | Net cash from financing activities | 87,922 | (4,400) | - The improvement in operating cash flow was driven by a decrease in inventory and non-cash share-based compensation of **€42.7 million**[187](index=187&type=chunk)[188](index=188&type=chunk) [Market Risk Disclosures](index=42&type=section&id=QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the company's exposure to market risks, particularly foreign exchange fluctuations, and its mitigation strategies [Foreign Exchange Risk](index=43&type=section&id=Foreign%20Exchange%20Risk) The company faces foreign exchange risk from significant non-Euro revenues, mitigated by Euro-denominated expenses and active hedging in seven major currencies - The company has significant sales denominated in U.S. Dollars and Pound Sterling, creating foreign currency exposure[194](index=194&type=chunk) - To mitigate this risk, the company uses hedging contracts for seven major currencies, though this strategy does not eliminate the risk entirely[196](index=196&type=chunk) [Legal Proceedings](index=42&type=section&id=LEGAL%20PROCEEDINGS) This section provides a summary of the company's involvement in legal proceedings and management's assessment of their potential impact [Legal Proceedings Summary](index=43&type=section&id=Legal%20Proceedings%20Summary) The company is involved in ordinary course legal proceedings but does not anticipate any material adverse effects on its business or financial condition - The company is not currently party to any legal proceedings which, if determined adversely, would be expected to have a material adverse effect on the business[199](index=199&type=chunk)

Financial Data and Key Metrics Changes - Gross merchandise value (GMV) increased by 26.2% year-over-year to €200.2 million, exceeding the long-term guidance of 22% to 25% annual growth [9][28] - Net sales rose by €29 million or 18.3% year-over-year to €187.6 million, slightly lower than GMV growth due to brands transitioning to the Curated Platform Model (CPM) [31] - Gross profit increased by €21.5 million or 27.4% year-over-year to €100.1 million, with a gross profit margin of 53.4%, up from 49.5% [33] - Adjusted EBITDA grew by 27.8% to €28.3 million, with an adjusted EBITDA margin of 15.1% [38] - Adjusted net income increased by 27.3% to €18.9 million [41] Business Line Data and Key Metrics Changes - The U.S. market saw a significant net sales growth of 74.2% compared to the prior year, now accounting for 16.3% of total business [11] - Mainland China net sales grew by 51.7%, indicating strong performance in that region [12] - New categories such as kidswear and menswear accounted for 15.7% of total business, showing successful expansion into these segments [12] Market Data and Key Metrics Changes - The U.S. luxury market is experiencing a shift, with consumers moving towards online shopping, filling a void in the luxury retail landscape [11] - It is estimated that over 30% of personal luxury goods spending will be online by 2025, representing a significant market opportunity [10] Company Strategy and Development Direction - The company aims for long-term growth of 22% to 25% annually, driven by online consumer shifts and untapped geographic potential [7][13] - The Curated Platform Model (CPM) is being successfully implemented, allowing for better inventory management and brand partnerships [16][32] - The focus on high-value multi-brand customer relationships is a key differentiator, enhancing brand collaborations and customer engagement [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the volatile market and maintain operational excellence, which drives customer loyalty and financial results [8][24] - The company anticipates continued growth despite potential challenges from inflation and supply chain disruptions, with a strong focus on maintaining profitability [45][82] Other Important Information - The company plans to publish its ESG commitment, focusing on sustainability and responsible growth [23] - The financial position remains strong with cash and cash equivalents of €79.7 million and no bank liabilities [42] Q&A Session Summary Question: Market share opportunity and untapped category potential - Management believes there are significant opportunities in luxury lifestyle categories and that travel will not detract from online sales [54] Question: EBITDA margin outlook and profitability - The EBITDA margin is expected to stabilize at 9% to 10%, with potential for higher margins as customer loyalty increases [56] Question: GMV and CPM model expectations - CPM is expected to account for well below 20% of GMV this fiscal year, with medium-term expectations below 35% [60] Question: U.S. market strategies - A local team has been established to enhance customer engagement and capitalize on the growing luxury demand in the U.S. [64] Question: Customer acquisition and churn - The company continues to see growth in online luxury shopping, with a significant number of new customers acquired during the pandemic [86]

Investor Presentation February 2022 Legal Disclaimer Forward Looking Statements & Industry Information This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this presentation are forward- looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operation ...

New Picture Investor Presentation November 2021 Legal Disclaimer Forward Looking Statements & Industry Information This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this presentation are forward- looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results ...

MYT Netherlands Parent B.V. (NYSE:MYTE) Q1 2022 Results Earnings Conference Call November 11, 2021 8:00 AM ET Company Participants Martin Beer - Chief Financial Officer Michael Kliger - Chief Executive Officer Conference Call Participants Kimberly Greenberger - Morgan Stanley Matthew Boss - JPMorgan Kimberly Hong - Cowen and Company Rick Patel - Credit Suisse Geoffroy de Mendez - Bank of America Operator Greetings, and welcome to the Mytheresa First Quarter Fiscal 2022 Earnings Conference Call. At this time ...