Mr Bricolage Sa · EURONEXT:ALMRB
Mr Bricolage Sa — FY2017 Earnings Presentation
41 slides from Mr Bricolage Sa's earnings presentation, March 2018
Slide 1: 2017 full-year earnings
2017 full-year earnings Continued implementation of the REBOND strategic plan
Slide 2: Mr.Bricolage in brief
Mr.Bricolage in brief Market leader for local independent home improvement and gardening stores s • Brand with strong proximity (1) Hyper-proximity brand • Network services, key to Mr. Bricolage's success Organization supporting store development: Mr.Bricolage, Les Briconautes and affiliates • Netwo
Slide 3: Mr.Bricolage Group: 755 stores
Mr.Bricolage Group: 755 stores leader for proximity France: 687 stores, local independent retailers, home improvement specialists, who share strong values Affiliates under their own brand 322 stores 103 stores 262 affiliate stores 257 member stores 102 member stores 65 directly-owned stores 1 direct
Slide 4: Mr.Bricolage Group
Mr.Bricolage Group experienced and dedicated team 218 members-entrepreneurs (Mr.Bricolage), integrated within the decision-making process • Board of Directors: 8 directors 6 members-entrepreneurs enable Mr.Bricolage SA to benefit from the experience built up on the ground in their stores Paul Cassig
Slide 5: Contents
Contents 1. REBOND strategic plan in 2017 2. Business in 2017 3. Mr.Bricolage SA 2017 consolidated accounts 4. Outlook for 2018 5. Conclusion 6. Stock market 5
Slide 6: REBOND strategic plan 2017, year 1
REBOND strategic plan 2017, year 1
Slide 7: REBOND plan
REBOND plan 3-year strategic plan launched at end-2016 to establish new dynamics and look ahead to 2020 Vision Digital and Product Network Customer Selection Experience Organization and Resources Member / Store Relationship 7
Slide 8: REBOND plan: key dates
REBOND plan Key dates From January 2018 Building the future June 2017 to January 2018 Rebounding and engaging November 2016 to June 2017 Going back to basics 8
Slide 9: Brand platform
Brand platform starting point for Phase 2 of the REBOND plan Vision Mission Today, customers need to feel Ensure that each customer, carrying that the relationship is more out home improvement and important than transactions renovation or garden and that home and garden projects, feels understood ar
Slide 10: Expression of the brand platform
Expression of the brand platform tagline for a Group focused on proximity and service New tagline • Reflecting the great service promise made to: Customers, Members-entrepreneurs, And the Group’s employees 10
Slide 11: Expression of the brand platform: advertising campaign
Expression of the brand platform: advertising campaign Objectives • Brand image: promote the new positioning • Brand awareness, share of voice and recall (+1pt to 85%(1)) Approach: 360° national advertising campaign focused on summer 2017 Print Campaign 3 1 National TV National Display > 3,700 ads r
Slide 12: Retail platform
Retail platform scalable concept in line with new market trends Principle: complete response to our customers' relational and transactional needs Our 4 retail pillars Product Selection Customers To find ideas and think up For support, a product not seen To collect an order, get a delivery, This is t
Slide 13: 2017: review of key progress 1/2
2017: review of key progress 1/2 STORE VISION RESOURCES RELATIONSHIP Continued system Definition and deployment on Over 100 members engaged in optimization and the Mr. Bricolage brand committees and working standardization platform and retail platform groups (€9.9M of investments Relaunch of brand S
Slide 14: 2017: review of key progress 2/2
2017: review of key progress 2/2 DIGITAL & PRODUCT NETWORK CUSTOMER SELECTION EXPERIENCE 2017 purchases / commercial Full overhaul of 15 closures of directly- negotiations mrbricolage.fr owned stores Preparation of range changes(1) Switch to local mode and new 6 sales of directly-owned for 2018 (23%
Slide 15: REBOND plan key progress in 2017 – overview
REBOND plan key progress in 2017 – overview 2016 2017 Review of priorities set and actions taken 35% 37% 29% 28% 25% 22% 14% 10% 15 closures 12% IS Overhaul of standardization of e-commerce activities 2h Voucher Click and Home 6 sales product selection mrbricolage.fr le-jardin-de-catherine.com colle
Slide 16: Business in 2017
Business in 2017
Slide 17: 2017 networks volume of business incl. taxes
2017 networks volume of business incl. taxes Volume of business incl. taxes Change on total store Change on like-for-like 31 Dec 2017 (€M) basis store basis(1) In-store sales 2,029.9 - 4.5% - 0.9% France 1,789.5 - 5.3% - 1.4% Mr.Bricolage 1,358.0 - 3.1% - 1.6% Les Briconautes 220.8 - 5.5% -0.1% Affi
Slide 18: Network development accelerated by the REBOND plan
Network development accelerated by the REBOND plan France 8 5 openings 3 Laroque des Albères Saint Laurent des Arbres International 7 2openings transfers / remodelings/ • Morocco extensions • Belgium Morlaix Baugé 1transfer • Andorra 8 8 Acquisitions by affiliates joined members 18
Slide 19: Network services
Network services first return to growth Realignment and acceleration of network services business and return to growth driven by logistics in 2017 €179.2M €182.2M +1.7% Central listing unit Sales of 63,4 64,1 services +1.2% Logistics services Network services, key to Mr. Bricolage’s success Organiza
Slide 20: Mr.Bricolage SA 2017 consolidated accounts
Mr.Bricolage SA 2017 consolidated accounts
Slide 21: Consolidated turnover
Consolidated turnover Turnover excluding tax Year-on-year 31 Dec 2017 31 Dec 2016 €M change Network Services turnover 182.2 179.2 + 1.7% Sales of goods 118.1 115.8 + 2.0% Sales of services 64.1 63.4 + 1.2% Retail turnover 303.5 344.4 - 11.9% Total consolidated turnover 485.7 523.6 - 7.2% Network ser
Slide 22: Consolidated income statement 1/2
Consolidated income statement 1/2 €M 31 Dec 2017 31 Dec 2016 % change Consolidated turnover 485.7 523.6 - 7.2% EBITDA(1) 27.3 27.2 + 0.4% Current operating profit (2) 13.8 13.6 + 0.9% % of consolidated turnover 2.8% 2.6% Network services 23.2 30.8 - 24.8% Retail (9.4) (17.2) + 45.2% (1) EBITDA: "Cur
Slide 23: Change in current operating profit - Retail
Change in current operating profit - Retail Like-for-like 2016 acquisitions Capital gains on 2016 store basis (Arles, Thouars) sales Other E-commerce 2017 -9,4 -17,2 +0.7 +0.4 +3.3 -0.5 +€7.8M +3.9 23
Slide 24: Change in current operating profit – Network Services
Change in current operating profit – Network Services -2,9 -€7.6M -3,4 -1,8 +0,5 30,8 23,2 2016 Margin on sales of Communications Staff costs Other income and 2017 services and goods(1) and marketing expenses (1) Impact of the lower volume of business and purchases and the increase in transport cost
Slide 25: Consolidated income statement 2/2
Consolidated income statement 2/2 €M 31 Dec 2017 31 Dec 2016 Non-current operations and expenses (2.9) (89.4) REBOND (0.5) (87.3)(1) TASCOM retail space tax - (2.1) (2) Other non-current items (2.4) - Operating profit 10.9 (75.8) Financial income (expense) (2.5) (2.7) Profit before tax 8.4 (78.5) Sh
Slide 26: 2017 condensed balance sheet
2017 condensed balance sheet Assets 2017 2016 Liabilities 2017 2016 Non-current assets 282.6 285.5 Equity, Group share 195.9 195.0 Goodwill 178.4 182.5 Minority interests - 0.3 - 0.4 Real estate 34.7 42.5 Total equity 195.6 194.6 Current assets 207.5 206.8 Inventories (2) 100.1 106.7 Financial liabi
Slide 27: Net financial debt
Net financial debt Temporary increase in debt (+€5.9M) linked primarily to the impact of sales completed at the start of 2018 +3,8 -4,3 +6,1 +17,1 -1.0 +4,4 -13.0 -13,6 -7,2 Operating cash flow excl. non- 2017 66,6 current items: 72,5 €17.9M Net financial debt: €72.5M Reduced by €53.6M over 5 years
Slide 28: Refinancing finalized end-2017
Refinancing finalized end-2017 visibility further strengthened and deleveraging to continue New syndicated agreement signed at end-2017 • Total amount: €120M • In 3 tranches €55M €40M €25M Medium-term, Revolving line, repayable Investment credit, Objectives repayable over 5 years at maturity in 5 ye
Slide 29: Building the future
Building the future
Slide 30: REBOND plan: outlook
REBOND plan: outlook 2017-2019 2020-… Strong cash generation, Relaunching development New dimension + Earnings reallocated focusing in priority for the networks for Mr. Bricolage SA on: • Increased store profitability • Growth in Network Services + Operational profitability turnover + Return • Revit
Slide 31: 2018: review of key missions 1/2
2018: review of key missions 1/2 STORE VISION RELATIONSHIP RESOURCES Make the Vision a reality in Use 100% of resources from Deploy the new systems to the pilot stores our new network management strengthen productivity Associate footfall Strengthen our store Define the 3-year Logistics communication
Slide 32: 2018: review of key missions 2/2
2018: review of key missions 2/2 DIGITAL & PRODUCT CUSTOMER NETWORK SELECTION EXPERIENCE Roll out the range changes Make 100% of the Develop city center product selection visible stores Accelerate the development online Invest in revitalizing the of the own-brand Inventiv Accelerate the selection’s
Slide 33: Continued development in France in 2018
Continued development in France in 2018 ALREADY EXPECTED ACHIEVED 2 Mr.Bricolage stores 9 transfers / remodelings 2 directly-owned stores sold opened / extensions(1) to members 20 affiliates joined 1 9 member store affiliates joined acquired by the Group (1) Of which: 6 Mr.Bricolage stores in France
Slide 34: Selective areas for international development
Selective areas for international development Yeshi Group • Strengthening the partnership 5 new countries (Benin, Burkina Faso, Mali, Europe Niger and Togo) in addition to the 4 countries already signed up (Congo, Ivory Coast, Gabon and Realigned around the most Senegal) buoyant countries • Opening
Slide 35: Key indicators for 2018
Key indicators for 2018 • Continued resizing of the directly-owned store network • Acceleration of the realignment around Network Services • Deployment of new ranges • Marketing strategy: ramping up of media campaigns and relaunch of digital activities • Standardization of the information systems fo
Slide 36: Proximity positioning reaffirmed by the brand platform
Proximity positioning reaffirmed by the brand platform Ambition looking ahead to 2020: become the benchmark for customer experience by combining the best of in-store and digital Human-scale stores - Close to our customers’ day-to-day lives Proximity - Led by teams of retailers - As close to their pr
Slide 37: New store concept best of in-store
New store concept best of in-store Heart of great service Link between the teams and customers Supporting customers: advice on products and projects, tools, etc. “Shop counter” spirit with welcome desk 37
Slide 38: New store concept best of in-store
New store concept best of in-store Where physical meets digital Store to web / web to store Entire range with extension e-Commerce site linked to the store with services that facilitate exchanges 38
Slide 39: Stock market
Stock market
Slide 40: Share on the stock market
Share on the stock market Share data Shareholding structure ISIN: FR0004034320 (at 31 Dec 2017) Ticker: MRB Michel Tabur 2,0% Public Number of shares: 10,387,755 32,4% Share price at 12 March 2018: €14.40 Market capitalization: €150M Eligible for SME share-based savings schemes Since (PEA-PME) ANPF
Slide 41: Questions / answers
Questions / answers