Ceconomy Ag · XETR:CEC
Ceconomy — Ceconomy Ag Ord — Q1 2021 Earnings Presentation
28 slides from Ceconomy's earnings presentation, Feb 9, 2021
Slide 1: Results Presentation Q1 2020/21
Results Presentation Q1 2020/21 9 February 2021 Date: 15 Dec 2020 // 1
Slide 2: Disclaimer and Notes
Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation (including all to purchase or subscribe to, any securities in any jurisdiction. Neither this Historical financial information contained in this presentation is mostly based slides of this document), the oral
Slide 3: Highlights
1 HIGHLIGHTS FINANCIAL PERFORMANCE & 2 OUTLOOK // 3
Slide 4: Highlights
1 HIGHLIGHTS FINANCIAL PERFORMANCE & 2 OUTLOOK // 4
Slide 5: Excellent start into the new financial year 20/21 despite rising COVID-19-related challenges
Excellent start into the new financial year 20/21 despite rising COVID-19-related challenges Continued strong customer demand and high We deliberately pulled forward Christmas online dynamics supported by attractive demand to mitigate lockdown risks marketing campaigns Near-term trading subject to s
Slide 6: We delivered again a successful peak season – key was the extension of the campaign period
We delivered again a successful peak season – key was the extension of the campaign period +21% yoy +8% yoy +30% yoy Pre-Black Friday period1 Black Friday period2 Post-Black Friday period3 Note: Sales development adj. for currency & portfolio change effects. 1Pre-Black Friday period: 30/10/2020 – 22
Slide 7: Stationary business again affected by temporary store closures in many countries
Stationary business again affected by temporary store closures in many countries Monthly average of open stores (% of total stores) 89% 70% 69% 59% 43% 37% 14% Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 211 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21 Q2 20
Slide 8: Our omnichannel-model is a key advantage during the lockdown
Our omnichannel-model is a key advantage during the lockdown Webshop can partly compensate temporary closure of stationary business, but in- and outbound logistics impacted by lockdowns Pick-up remains available for customers in many cases Ship-from-store gives access to store inventory during
Slide 9: Strong sales and earnings development despite increasing COVID-19-related restrictions
Strong sales and earnings development despite increasing COVID-19-related B&M restrictions and local lockdowns +11.4% Sales1 development 346 €m Adj. EBIT2 excl. associates 1Adj. for currency & portfolio change effects. 2Adj. for portfolio changes and excl. non-recurring effects in connection with (1
Slide 10: Financial Performance & Outlook
1 HIGHLIGHTS FINANCIAL PERFORMANCE & 2 OUTLOOK // 10
Slide 11: Excellent sales growth in the peak period driven by successful campaigns and online business
Excellent sales growth in the peak period despite increasing COVID-19-related lockdowns, driven by successful campaigns and online business Total sales Sales1 by segment (in €m) (yoy change) 11.4%1 9.4% 7,464 25.5% 6,821 13.0% 10.7% 9.1% Q1 19/20 Q1 20/21 DACH W. &. S. EUROPE E. EUROPE OTHERS 1Adj.
Slide 12: Online sales more than doubled in the first quarter, generating 30% of total sales
Online sales more than doubled in the first quarter, generating 30% of total sales Online sales (in €m) +115.7% Online share reached even 35% in December as growing COVID-19 2,259 restrictions accelerate channel shift Number of registered online customers increased by c. 3 million 1,048 in Q1 Declin
Slide 13: Services & Solutions business impacted by COVID-19-related store closures
Services & Solutions business impacted by COVID-19-related store closures and associated drop in customer footfall Services & Solutions sales (in €m) -8.6% Sales growth in October cannot be continued due to rising COVID-19 -2.6% adj.1 restrictions 375 343 Continued strong demand for extended warrant
Slide 14: Lower gross margin essentially driven by channel shift and logistics costs
Lower gross margin essentially driven by channel shift and logistics costs Gross margin1 (in % of sales) -1.4%p. Accelerated channel shift coupled with product mix effects and 18.3% increased delivery costs 17.0% Partial pick-up bans additionally weighed on gross margin Lower income contribution fro
Slide 15: Further progress in the optimization of the cost structure
Further progress in the optimization of the cost structure in addition to COVID-19 cost measures OPEX1,2 (in % of sales) 18 €m Absolute cost savings Lower personnel expenses driven -1.6%p. by FTE reduction and higher cost efficiency 14.8% 13.2% First savings from introduction of new Operating Model
Slide 16: Strong EBIT increase due to strong sales performance and cost discipline
Strong EBIT increase due to strong sales performance and cost discipline Adj. EBIT1 excl. associates Adj. EBIT1 excl. associates by segment (in €m) (in €m) Q1 19/20 Q1 20/21 +56 346 247 259 289 74 50 7 16 -15 -3 Q1 19/20 Q1 20/21 DACH W. &. S. EUROPE E. EUROPE OTHERS 1Excl. non-recurring effects and
Slide 17: EPS slightly below prior year's level – EBIT increase offset by lower financial result
EPS slightly below prior year’s level – EBIT increase offset by lower financial result and higher taxes EBITDA to EPS (in €m) €m Q1 19/20 Q1 20/21 Change Transaction costs (6 €m) related to EBITDA 509 521 11 acquisition of MMS minority stake EBIT 319 340 21 included in reported EBIT in CY Net financ
Slide 18: Adjusted Free Cash Flow slightly below PY due to lower NWC inflow
Adjusted Free Cash Flow slightly below PY due to lower NWC inflow, while tax refunds and lower investments were supportive Yoy change Free Cash Flow in Q1 20/21 (in €m) +11 -262 +41 +79 +39 -92 +16 -76 856 12 1,329 Capital gains tax -26 refund -35 Other OCF in PY 1,196 negatively PY included impacte
Slide 19: Outlook for FY 20/21 subject to significantly increased uncertainties
Outlook for FY 20/21 subject to significantly increased uncertainties due to prolonged temporary store closures Initial assumptions1 Knowns Current outlook Q1 results are a major step to reach No further extensive temporary FY guidance closures of the stationary business Near-term trading rema
Slide 20: Key take-aways
Key take-aways Successful peak season and strong resilience against COVID-19 headwinds Uncertain environment characterized by challenging operating conditions Relentless focus on pursuit of our strategy and execution of our transformation // 20
Slide 21: Q&A
Q&A Dr Bernhard Düttmann Karin Sonnenmoser CEO CFO // 21 Date: 15 Dec 2020 // 21
Slide 22: Contact
Contact CECONOMY AG Investor Relations Kaistr. 3 40221 Düsseldorf Germany PHONE +(49) 211 5408-7222 EMAIL IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/ // 22
Slide 23: Net Working Capital
Net Working Capital €m 30/09/2019 31/12/2019 Change 30/09/2020 31/12/2020 Change Inventories 2,548 3,348 801 2,949 3,668 719 Trade receivables and similar claims 455 543 87 488 493 4 Receivables due from suppliers 1,295 1,851 556 1,302 1,834 532 Trade liabilities and similar liabilities -5,321 -7,85
Slide 24: Store network
Store network 30/09/2020 Openings Closures 31/12/2020 Germany 425 – -5 420 Austria 53 – – 53 Switzerland 25 – – 25 Hungary 32 – – 32 DACH 535 – -5 530 Belgium 27 – – 27 3 store openings, thereof 1 store Italy 117 – – 117 in Spain and 2 stores in Turkey Luxembourg 2 – – 2 Netherlands 50 – – 50 Portug
Slide 25: Status on COVID-19 lockdowns by country (as of 8 February 2021)
Status on COVID-19 lockdowns by country (as of 8 February 2021) # stores as of 31/12/2020 Opened stores Closed stores Germany 420 – 420 Austria 53 53 – Switzerland 25 – 25 Hungary 32 32 – DACH 530 85 445 Belgium 27 27 – 52% of our stores are currently opened Italy 117 1171 – Luxembourg 2 2 – Netherl
Slide 26: Financial calendar
Financial calendar Annual General Q2/H1 2020/21 Q3/9M 2020/21 Meeting results results 17 FEBRUARY 2021 11 MAY 2021 12 AUGUST 2021 Q4/FY 2020/21 FY 2020/21 trading statement results 26 OCTOBER 2021 14 DECEMBER 2021 // 26 Date: 15 Dec 2020 // 26
Slide 27: Upcoming events
Upcoming events Morgan Stanley Baader Bank Virtual Roadshow post-Q1 Virtual Roadshow post-Q1 11 FEBRUARY 2021 11 MARCH 2021 // 27 Date: 15 Dec 2020 // 27
Slide 28: Date: 15 Dec 2020
Date: 15 Dec 2020 // 28