Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (March 2023)
38 slides from Fnac Darty Sa's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
INVESTOR PRESENTATION MARCH 2023
Slide 2: Fnac Darty at a Glance
FNAC DARTY AT A GLANCE A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM 7.9bn€ Group revenue in 2022 – 25,000 employees 2022 revenue breakdown by category Consumer electronics 48% Top European omnichannel retailer Editorial products – 22% of total sales in 2022 are onl
Slide 3: FY2022 Activity and Strategic Execution Review
FY2022 ACTIVITY AND STRATEGIC EXECUTION REVIEW
Slide 4: Group's Resilience
GROUP’S RESILIENCE Group revenue (in €m) Group gross margin 30,4% +7%1 30,3% 8 043 7 949 29,5% 7 491 29,2% 7 349 2019 2020 2021 2022 2019 2020 2021 2022 Resilient sales of €7,949 million in 2022 – Growth of +7% compared to pro-forma 2019 figures1 Solid gross margin performance, up by +€36 million ye
Slide 5: Background Information
BACKGROUND INFORMATION Change in VALUE of the French market Change in VOLUME of the French market (base of 100 in 2019) (base of 100 in 2019) DOMESTIC APPLIANCES CONSUMER ELECTRONICS EDITORIAL PRODUCTS 2019 2020 2021 2022 2019 2020 2021 2022 Markets that have recorded positive growth in value since
Slide 6: Fnac Darty Showed Resilience by Relying on Its Strengths
FNAC DARTY SHOWED RESILIENCE BY RELYING ON ITS STRENGTHS A winning complementarity of its stores and web platforms – This year, stores performed well, as they were open and popular with customers – Omnichannel sales remain high (≈ 50%) A wide range of products and services – A positioning increasing
Slide 7: Digital Experience at the Heart of the Group's Strategy
DIGITAL EXPERIENCE AT THE HEART OF THE GROUP’S STRATEGY +25% Online penetration up 3 points compared to 2019, at DIGITAL REVENUE 22% at the end of 2022 +8% increase in active online customers1 in France between 2019 and 2022 1 in 2 online sales is omnichannel 2019 2020 2021 2022 x2 3,000 Fnac/Darty
Slide 8: Targeting a 100% Profitable Store Network by 2025
TARGETING A 100% PROFITABLE STORE NETWORK BY 2025 Network of 987 stores, 43% of which are franchises Primarily franchise stores opened Action plans set reached for the few unprofitable stores – 46 franchise stores opened in 2022 – Unit transfer/restructuring to reduce ▪ I.e., 87% of total store open
Slide 9: Making the Most of Our Loyal Customer Base
MAKING THE MOST OF OUR LOYAL CUSTOMER BASE Recent launch of to meet new customer expectations – For all current and future customers that are members or subscribers, with no maximum duration – Enhanced loyalty card to reward any responsible actions PURCHASE CHOOSE BRING BACK … SECOND LIFE CLICK & PR
Slide 10: Strong Upswing of New Darty Max Subscribers
STRONG UPSWING OF NEW DARTY MAX SUBSCRIBERS 800,000+ +50% subscribers repeat shops by the end of 2022 compared to a standard Darty 2 million subscribers customer in 2025 Subscription rolled out at +50% average cart size compared to a standard Darty customer High level of customer 6 million+ products
Slide 11: Enabling an Educated Choice
ENABLING AN EDUCATED CHOICE A sustainability score that An After-Sales Service And more – enables customers to Barometer that 900 “sustainable – allows customers to choice” items in learn about the repairability Fnac and Darty compare product retail stores and reliability of hundreds categories and
Slide 12: Accelerating Product Repairs
ACCELERATING PRODUCT REPAIRS 2.3 million products repaired in 2022 2.5 million products repaired in 2025 Recruitment of technicians More m² dedicated to repair – 2,500 staff members dedicated to repairs – New Tours Val de Loire site with four repair workshops – 41 Tech Academies opened since 2019 an
Slide 13: Developing Second Life
DEVELOPING SECOND LIFE +34% increase in Second Life products1 sold in 2022 compared to 2021 1.5 million Second Life 1 in 3 products sold on Marketplace is a second-hand product products sold in 2022 Quality and service levels identical to those of new products (delivery, reliability, etc.) Second Li
Slide 14: A Group Invested in Energy Efficiency
A GROUP INVESTED IN ENERGY EFFICIENCY Objective: Reduce the Group’s electricity consumption in France by - 15% Charter signed in October 2022 by the end of 2024 – Signature of the Ecowatt commitment charter – Objective included in the variable compensation for Group employees Numerous initiatives to
Slide 15: FY2022 Financial Results
FY2022 FINANCIAL RESULTS
Slide 16: Revenue and Gross Margin
REVENUE AND GROSS MARGIN Resilient sales of €7,949 million in 2022 €M 2021 2022 % change – This was a drop of just -1.2% on a reported basis and -1.9% on a like-for-like basis1 compared to 2021 Revenues 8,043 7,949 -1.2% – Continued growth at +7% compared to pro-forma 2019 figures2 France and Switze
Slide 17: Operating Expenses
OPERATING EXPENSES In €m 2 179 2 103 2021 Inflation Performance plan Personnel expenses New activities (Manor, Other expenses (IT, 2022 (incl. PEPA) WeFix) logistics, …) Against the backdrop of high inflation, operating costs were €2,179 million in 2022, up +3.6% compared to 2021 The increase in inf
Slide 18: Financial Results
FINANCIAL RESULTS €M 2021 2022 Current operating income of €231 million – Down -€40 million compared to 2021, in a period when Current operating income 271 231 inflation was much higher than in previous years Other non-current operating Net income from continuing operations, Group share -10 -27 of €
Slide 19: Free Cash-Flow from Operations
FREE CASH-FLOW FROM OPERATIONS €M 2021 2022 Free cash-flow from operations decreased by -€200 million between 2021 and 2022 EBITDA 621 580 – Cash-flow decrease in relation to a drop in IFRS 16 impact -247 -254 income – A sharp decline in WCR linked to: Non-current cash items and 15 -9 EBITDA non-cas
Slide 20: Net Financial Debt
NET FINANCIAL DEBT In €m Free cash-flow from operations1: -€30 million -146 317 -70 -131 -131 247 -55 -28 -8 -5 Net cash as of CF from operation Change in working Income tax paid Operating Discontinued Dividends Interest and Other** Net cash as of December 31, 2021 before tax, capital* investments n
Slide 21: Financial Structure
FINANCIAL STRUCTURE €M 2021 2022 Strong cash and cash equivalents position Shareholders’ equity 1,564 1,523 amounted to €932 million, and there was also an undrawn €500 million revolving credit facility as of Net cash1 247 -5 12/31/2022 Gross financial debt 934 937 Cash and cash equivalents 1,181 93
Slide 22: Outlook
OUTLOOK
Slide 23: Outlook
OUTLOOK Market climate remains uncertain for 2023 – For the first half of 2023, the Group is expected to post slightly lower sales due to sluggish consumption coupled with a sharp rise in costs, particularly in energy; – For the second half of 2023, the Group should benefit from less unfavorable mar
Slide 24: Energy
ENERGY Background information Breakdown of the Group’s – General context of rising energy prices energy sources in 2023 – The Group agreed a hedging policy with Solvay that will run until 2024 for volumes that are subject to market rates – At the end of 2022, Solvay wanted to revise this agreement →
Slide 25: Objectives
OBJECTIVES Current operating income (COI) expected to be around €200 million in 2023 – 2023 COI in line with or improved compared to 2022, excluding the impact of the rise in energy costs. – In 2023, the drop in COI expected to be more pronounced in the first half of the year than in the second half
Slide 26: Shareholder Return
SHAREHOLDER RETURN Gross dividend per share Distribution rate: 38%1 2,00 € – In line with the strategic plan Everyday 1,40 € shareholder return policy 1,00 € – Stable compared to 2021 Rate of return: 4.1%2 2020 2021 2022* – This dividend will be payable in cash or shares* (5% discount), at the share
Slide 27: Appendices
APPENDICES
Slide 28: Definitions (1/2)
DEFINITIONS (1/2) Definition of like-for-like sales growth – This indicator measures changes in revenue excluding exchange rate fluctuations, the impact of change in scope and the impact of the opening and closing of directly owned stores since January 1, N-1. Definition of current operating income
Slide 29: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 Without application of IFRS 16 EBITDA EBITDA excluding IFRS 16 Current operating income before depreciation, Rents within the scope amortization and provisions on fixed operational of IFRS 16 EBITDA including rental expenses within the scope of I
Slide 30: Everyday Main CSR KPIs
EVERYDAY MAIN CSR KPIS KPIs 2021 2022 2025 targets Durability score1 111 115 135 Number of products repaired 2.1m 2.3m 2.5m Proportion of women in the Top 200 managers 27% 30% 35% Share of women in the Executive Committee 38% 42%2 >40% 1 Average of a reliability score and a repairability score, base
Slide 31: ESG Ratings
ESG RATINGS Agencies 2019 2020 2021 2022 44/100 48/100 54/100 61/100 12.2 11.5 11.4 12.0 Low ESG risks AA AA AA AA B C A- A- 31
Slide 32: Cash-Flow Statement
CASH-FLOW STATEMENT €m 2021 2022 Net Cash as of January 1 excl. IFRS 16 114 247 Operating free cash-flow (excl. IFRS 16) 170 -30 Dividends paid -27 -55 Shareholders’ equity component – OCEANE bonds 21 0 Interest paid net of interest and dividends received -27 -28 Acquisition/disposal of subsidiaries
Slide 33: Simplified P&L
SIMPLIFIED P&L €m 2021 2022 Revenue 8,043 7,949 Current operating income 271 231 Non-current operating income and expenses -10 -27 Operating income 260 204 Financial expense -42 -45 Tax -74 -54 Consolidated net income from continuing operations, Group share 145 100 Net income from discontinued opera
Slide 34: Simplified P&L (H1 & H2)
SIMPLIFIED P&L (H1 & H2) €m H1 2021 H2 2021 H1 2022 H2 2022 Revenue 3,465 4,578 3,428 4,521 Current operating income 34 237 19 212 Non-current operating income and expenses -3 -8 -14 -13 Operating income 32 229 5 199 Financial expense -25 -17 -18 -27 Tax -9 -65 -3 -51 Consolidated net income from co
Slide 35: Balance Sheet
BALANCE SHEET Assets in €m 31 Dec. 2021 31 Dec. 2022 Equity and Liabilities in €m 31 Dec. 2021 31 Dec. 2022 Goodwill 1,654 1,654 Share capital 27 27 Reserves related to equity 971 971 Intangible assets 528 562 Conversion reserves -6 -4 Tangible assets 575 570 Other reserves 563 518 Rights of use rel
Slide 36: Store Network
STORE NETWORK December 31, 2021 December 31, 2022 Owned Franchised Total Owned Franchised Total France and Switzerland1 413 385 798 412 414 826 Iberian Peninsula 69 5 74 69 6 75 Belgium and Luxembourg 85 0 85 86 0 86 Group 567 390 957 567 420 987 1 Including 11 Fnac stores abroad: 3 in Qatar, 2 in T
Slide 37: Disclaimer
DISCLAIMER IMPORTANT NOTICE: By reading this presentation, you agree to be bound by the following limitations and qualifications: certain information included in this release is not based on historical facts but on forward-looking statements. Such forward-looking statements speak only as of the date
Slide 38: Fnac Darty
FNAC DARTY