Currys Plc · LSE:CURY
Currys — Corporate Update (January 2025)
42 slides from Currys's corporate update, Jan 15, 2025
Slide 1: Currys plc 2024/25 Peak Trading update
Currys plc 2024/25 Peak Trading update 15 January 2025
Slide 2: Summary: a successful Peak, from an ever-stronger business
Group Summary: a successful Peak, from an ever-stronger business Nordics UK&I Outlook Outperforming in weak Strong Peak Balance sheet strong market Continuing the encouraging Current year profits robust Controlling the controllables momentum Path to improving free Showing the business’s cashflow str
Slide 3: H1 2024/25: Performance continues to strengthen
Group H1 2024/25: Performance continues to strengthen Growth in revenue, profits, free cashflow and net cash Revenue Adjusted EBIT Adjusted EPS £3,918m £41m 0.6p +1% YoY +52% YoY +1.7p YoY Free cash flow Closing net cash Pension deficit (IAS19) £50m £107m £(143)m +£46m YoY +£236m YoY +£45m YoY Sourc
Slide 4: Peak Like-for-Like Sales
Group Peak Like-for-Like Sales Positive growth in both segments UK&I Nordics 24/25 LFL performance 24/25 LFL performance 5% 1% 4% 2% -1% -2% H1 AAAAAAAAAAA Peak YTD H1 Peak YTD Historical Peak LFL performance Historical Peak LFL performance 2% 1% -2% -3% -5% -5% -7% -10% Peak 21/22 Peak 22/23 Peak 2
Slide 5: Current year outlook & guidance
Group Current year outlook & guidance Group adjusted PBT expected to be in range of £145-£155m Current year outlook • Expect adjusted PBT of £145-155m, +23-31% YoY • Includes the in-year impact of the UK Government budget measures • 2024/25 is a 53-week year. This will have a small impact on sales b
Slide 6: Peak tech trends
Group Peak tech trends Drones Action Cams Tablets AI Laptops PC Gaming Premium Health & Coffee Super-Size Toys Mobile Beauty Machines TV’s 6
Slide 7: Nordics
Nordics
Slide 8: Strong track record of revenue and profit growth
Nordics Strong track record of revenue and profit growth Interrupted in last two years but now recovering 8% revenue growth p.a. from 2011/12 to 2023/24 (BNOK) 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 H1 22/23 H1 23/24 H1 24/25 Adjusted EBIT showed steady growth
Slide 9: Market environment remains weak
Nordics Market environment remains weak Demand remains tough, even as other pressures have reduced Consumer price index1 Nordic B2C market2 monthly revenue growth YoY 15% (May 2021 to Nov 2024) 10% 10% 5% 0% May-22 May-23 May-24 5% Interest rates1 0% 5% 4% 3% -5% 2% Average (3.1)% 1% 0% May-22 May-2
Slide 10: Clear market leadership, now building again
Nordics Clear market leadership, now building again Market share stable relative to pre-pandemic and starting to improve Nordic market share Improving trajectory 0.4% 29.2% 28.8% 27.9% 28.2% 27.9% 28.0% 27.9% 0.1% (0.4)% (0.4)% (0.7)% (0.9)% (1.2)% 18/19 19/20 20/21 21/22 22/23 23/24 H1 24/25 H1 21/
Slide 11: Gross margin back to historic levels
Nordics Gross margin back to historic levels Focus on balancing profits and market share Gross margin at historic levels Opportunity for further improvement Nordics gross margin % Solution selling Higher Services adoption Not chasing less profitable sales Reduced supply chain and service operation c
Slide 12: Elkjøp's peers struggled during market downturn
Nordics Elkjøp’s peers struggled during market downturn Elkjøp’s revenue and profits were more resilient and have recovered faster Revenues recovering ahead of competitors… … and profits significantly outperforming Revenue growth YoY % Adjusted EBIT % +40bps YoY (170)bps (250)bps YoY YoY H1 22/23 H2
Slide 13: Well-invested logistics, IT and store infrastructure
Nordics Well-invested logistics, IT and store infrastructure No need for further significant investment New distribution centre now open Store portfolio mature IT improvement implemented Operational efficiencies Limited investment needed Now driving better expected to build over time efficiency NXT
Slide 14: Market recovery expected in the long term
Nordics Market recovery expected in the long term But prudently planning for limited market growth in near term Nordic market expected to decline in the short term Economic headwinds expected to subside over time Revenue Now Economic headwinds across Nordics Interest rates remain high Consumer confi
Slide 15: Elkjøp summary
Nordics Elkjøp summary Clear #1 in fundamentally attractive Well invested across store portfolio, market logistics and IT Faster recovery in Cashflow has been resilient challenging market and will improve further environment Elkjøp has many qualities that Upside if consumer environment customers val
Slide 16: Strategy
Strategy 16
Slide 17: We help everyone enjoy amazing technology
We help everyone enjoy ~ amazing technology.
Slide 18: We help everyone enjoy amazing technology
Group We help everyone enjoy amazing technology Capable and Easy to Customers Grow committed Shop for Life Profits colleagues 18
Slide 19: Clear #1 in every market
Group Clear #1 in every market Scale that competitors cannot match UK Electricals market share Nordic market share 25.0% 28.6% 23.9% 28.2% 22.9% 23.1% 27.9% 27.5% H1 21/22 H1 22/23 H1 23/24 H1 24/25 H1 21/22 H1 22/23 H1 23/24 H1 24/25 Sources: Currys internal information, GfK 19
Slide 20: Colleague engagement remains high
Capable and Committed Colleagues Colleague engagement remains high UK&I score amongst top 5% of businesses UK&I colleague engagement Nordic colleague engagement 78 84 82 82 77 77 81 79 78 78 77 76 75 68 74 Oct-20 Apr-21 Oct-22 Apr-22 Oct-22 Apr-23 Oct-23 Apr-24 Oct-24 Apr-22 Oct-22 Apr-23 Oct-23 Apr
Slide 21: Customer satisfaction continues to grow
Easy to Shop Customer satisfaction continues to grow Nordics have moved to NPS measurement, providing some healthy competition UK&I Customer satisfaction Nordics customer satisfaction NPS1 NPS1 and Happy or Not2 Share of customers voting NPS “happy” or “very happy” (2)pts vs UK&I 94 19/20 20/21 21/2
Slide 22: Our retail fundamentals are better
Easy to Shop Our retail fundamentals are better Continue to focus on the right products, at the right price, available when customers want The right products… With improved availability UK&I SKUs +67% In-store availability Online availability UK&I Big Box Yo4Y availability 20k 20k +6pts +7pts 12k Yo
Slide 23: Customers prefer omnichannel
Easy to Shop Customers prefer omnichannel Customer surveys and actual shopping habits point to benefits of omnichannel Customers channel usage1 UK&I sales by channel2 Nordics sales by channel2 Total Market Total Market 48% 21% 24% 30% 33% 35% 35% 33% 33% 34% 49% Both online In-store only 77% 64% 62%
Slide 24: We're investing to improve both channels
Easy to Shop We’re investing to improve both channels Stores are being remodelled and ESEL added, website is undergoing continuous improvement Stores Online Definition: ESEL – Electronic Shelf Edge Labels 24
Slide 25: We are big online
Easy to Shop We are big online Online, we are larger than specialist competitors We are big online in the UK… … and the Nordics UK&I online revenue for the past 12 months1 Nordics online revenue for the past 12 months1 £2.3bn 2.2x £1.0bn £0.8bn £1.1bn £0.3bn £0.1bn Elkjop Komplett Verkkokkaupa Curry
Slide 26: Omnichannel sales seeing the strongest growth
Easy to Shop Omnichannel sales seeing the strongest growth Customers are increasingly taking advantage of the flexibility omnichannel offers Omnichannel sales1 are growing in mix With more customers choosing collect at store Omnichannel as proportion of total UK product sales UK&I Order & Collect re
Slide 27: "Right First Time" is improving customer satisfaction
Easy to Shop “Right First Time” is improving customer satisfaction Delivering significant financial benefits 1 Improved customer satisfaction 2 Direct cost savings UK&I CSAT1 £22m Store Purchase Delivery £14m £8m +5pts +3pts Yo2Y Yo2Y 23/24 24/25e Future savings Reduces repeat visits and costs H1 22
Slide 28: We're increasingly selling solutions, and not just products alone
Customers for Life We’re increasingly selling solutions, and not just products alone Adoption rate of “sold with” has more than doubled in two years Improved execution Growing adoption Instore: Accessories adjacent to products You’ll need: tech essentials UK&I “Sold with” adoption rate 41% 38% +20pt
Slide 29: Services are big, growing, and valuable to customers and to Currys
Customers for Life Services are big, growing, and valuable to customers and to Currys Source of recurring, higher margin revenue We help you We help you get We help get We help give your afford amazing the most out of you started tech longer life tech Protection | Repair | Refurbish your tech Delive
Slide 30: Credit growth continues, driven by existing customers
Customers for Life Credit growth continues, driven by existing customers Flexpay is now leading way to pay for our customers Credit adoption rising, with online at the forefront Credit customers steadily increasing Total credit adoption 2.5m 22.2% 2.3m 20.1% 1.9m 17.7% 1.7m 13.3% 1.4m 1.2m 11.2% 10.
Slide 31: Services to "get customers started" are becoming ever more valued
Customers for Life Services to “get customers started” are becoming ever more valued Currys is trusted in customers’ homes UK Big Box Installation rate UK Big Box Recycling rate UK Installation and Recycling rate 32.0% 32.8% 33.4% 30.8% 31.8% 28.1% 28.1% 25.2% 23.1% 22.0% 20.3% 20.5% 18.4% 15.7% 16.
Slide 32: Repair continues to grow
Customers for Life Repair continues to grow Unique capabilities make us well positioned to help all stakeholders Customers value repair Repair is growing We have competitive advantage UK&I active repair plans 10.1m 10.1m 9.8m 8.8m 8.9m 8.5m 19/20 20/21 21/22 22/23 23/24 H1 24/25 Nordics active repai
Slide 33: iD Mobile reached 2.1m subscribers
Customers for Life iD Mobile reached 2.1m subscribers Source of long-term profit and cashflow iD Mobile subscribers by acquisition year Vodafone-Three merger 2.5m £20.13 25.0% CMA ruling provides additional RPU1 confidence: 2.0m 2.0m 20.0% 1.8m 1.5m 15.0% Secured terms £13.60 RPU1 1.3m 1.2m 1.0m 1.1
Slide 34: Outlook
Outlook
Slide 35: Balance sheet strengthening
Outlook Balance sheet strengthening Net cash of £107m and pension deficit of £(143)m £(805)m £(313)m £(213)m £(346)m £(75)m £(36)m 400 200 0 (200) £m (400) (600) (800) (1,000) 19/20 20/21 21/22 22/23 23/24 H1 24/25 Net cash/(debt) Working capital facilities Pension deficit (IAS19) Total Source: Curr
Slide 36: Clear medium term margin ambitions
Outlook Clear medium term margin ambitions Returning to 3% margins is achievable based on historic performance UK&I adjusted EBIT margin % Nordics adjusted EBIT margin % 4.2% 26.8% 3.5% 3.6% 3.5% 3.4% 3.2% 2.9% 2.9% >3.0% 3.0% 26.0% >3.0% 2.1% 25.5% 1.9% 1.7% 25.0% 0.7% 0.3% £276m £188m £20m £106m £
Slide 37: Confident in delivering improved cash flow
Outlook Confident in delivering improved cash flow Margin improvement alongside tight discipline on capital expenditure, exceptional cash and working capital Adjusted EBIT margin Growing Steady growth At least 3% free cash flow Capital expenditure & Strong balance exceptionals Shareholder returns sh
Slide 38: Clear capital allocation priorities
Outlook Clear capital allocation priorities Resuming dividends for full year 2024/2025 Invest to grow business/profits/ Maintain prudent balance sheet cash flow Pay and grow ordinary dividend Pay required pension contributions Surplus capital available to return to shareholders 38
Slide 39: Summary
Group Summary Performance continuing to Strong trading and robust profit strengthen outlook in current year Nordics controlling all the Strong balance sheet and clear path controllables and outperforming in to growing free cash flow tough environment UK&I momentum as retail Growing shareholder retur
Slide 40: We help everyone enjoy amazing technology
We help everyone enjoy ~ amazing technology.
Slide 41: A leading omnichannel retailer of tech products and services
Summary A leading omnichannel retailer of tech products and services Clear focus on generating increasing shareholder returns Strategic priorities Capable and Easy to Shop Customers for Life International Committed Colleagues Significantly improved market leader UK&I product sales UK&I customers1 ba
Slide 42: Visit our corporate website
Visit our corporate website www.currysplc.com 42