Global Blue Group (GB) Investor Presentation summary

Business overview and market position

• Provides integrated technology and payment solutions to luxury retailers and brands, focusing on tax-free shopping for international travelers.

• Operates at the intersection of travel and luxury shopping, serving over 75,000 retailers and 15 million+ shoppers annually across 200 nationalities.

• Holds approximately 70% market share in tax-free shopping, more than three times larger than its nearest competitor.

• Maintains long-term relationships with iconic brands, with most partnerships exceeding 20 years.

• Differentiates through digitalization, tailored commercial approaches, and compliance expertise in 46 countries.

Financial performance and growth

• Achieved €205M annualized adjusted EBITDA, with 36% YoY revenue growth and 91% YoY adjusted EBITDA increase in FY23/24.

• Demonstrated 11% top-line CAGR and 18% adjusted EBITDA CAGR over the long term, with 87% cash conversion pre-COVID.

• Q1 FY24/25 saw 25% YoY revenue growth and 55% YoY adjusted EBITDA growth, with a 37% EBITDA margin.

• Maintains strong cash flow generation and asset-light operations, with a focus on technology investment.

• Trading at an 8.9x multiple, management is actively working to improve trading liquidity and capital structure.

Revenue model and profitability

• Generates revenue by taking a percentage of tax-free shopping volume, typically around 2% of purchase value including VAT.

• Achieves high margins and cash conversion, with a historical average adjusted EBITDA margin of 43%.

• Over 50% of revenue drops through to EBITDA, with a targeted effective tax rate of 24-26%.

• Net retention rate improved to 102.8% from FY19/20 to FY23/24, reflecting strong customer loyalty and pricing power.

• Resilient to economic downturns, with revenue indexed to luxury price increases and strong performance during inflationary periods.