Ceconomy Ag · XETR:CEC
Ceconomy — Corporate Update (April 2019)
19 slides from Ceconomy's corporate update, Apr 29, 2019
Slide 1: Reorganization & Efficiency Program
Reorganization IR Presentation & Efficiency Program Joern Werner 29 April 2019 Karin Sonnenmoser Ferran Reverter
Slide 2: Disclaimer and Notes
DISCLAIMER the actions of public authorities and other third parties, many of Such financial information is not necessarily indicative for the which are beyond our control, that could cause actual results, operational results, the financial position and/or the cash flow of the performance or financi
Slide 3: The Reorganization & Efficiency Program in a nutshell
The Reorganization & Efficiency Program in a nutshell Reduction of the 110-130 €m Run-rate savings c. 20% Group’s admin expenses1 in Germany 150-170 €m Expenses2 < 1.5 years Pay-back period 1 Before cost allocation to other P&L line items.2 Excluding 34 €m of expenses booked already in Q1 18/19 rela
Slide 4: We have a strong set of assets and operate in an attractive market
We have a strong set of assets and operate in an attractive market Leading multi-channel player for Digital opens up new product Consumer Electronics categories Differentiated value proposition with Ageing population is increasingly Services & Solutions offering seeking technical support L
Slide 5: We are transforming our business model with the evolution of our customer needs
We are transforming our business model with the evolution of our customer needs HOW we interact WHERE we interact Transact Store Reorganization & Efficiency Program Public Date: 29 April 2019 // 5
Slide 6: We have not fully utilized our potential and our performance has been disappointing
We have not fully utilized our potential and our performance has been disappointing in recent years CECONOMY’s EBIT margin development Peers’ EBIT margin (last FY) (before special items, excl. Fnac Darty and Russia) 4.6% Peer margins 4.0% 3.8% ̴2.4% 2.3% 1.9% FY 15/16* FY 16/17 FY 17/18 Peer 1 Peer
Slide 7: We need to become a more agile organization
We need to become a more agile organization – our current structures and processes slow down execution Group administrative expenses1 in Complex structures and redundant functions Germany +12% Unclear roles and responsibilities ̴0.5 €bn Non-standardized processes Limited resources for future investm
Slide 8: We have identified four strategic initiatives
We have identified four strategic initiatives – short-term, we focus on reducing complexity and costs DIGITAL SERVICES & CATEGORY & ORGANIZATION & GROWTH SOLUTIONS SUPPLY CHAIN COST STRUCTURE MANAGEMENT ONGOING ONGOING GRADUAL PROGRESS SHORT TERM Reorganization & Efficiency Program Reorganization &
Slide 9: Our program focuses on two pillars
Our program focuses on two pillars: reorganizing central functions and optimizing the operational entities portfolio Reorganization & Efficiency Program (expected duration up to 18 months) Central Functions Portfolio c. 85% c. 15% of savings1 of savings Reorganization of central functions at Review
Slide 10: We streamline processes and functions and review our venture portfolio
We streamline processes and functions and review our venture portfolio Central Functions Portfolio Processes Countries Venture Closure of Standardized processes across the group activities streaming and platform JUKE Tailoring and streamlining of all process- associates oriented tasks Termin
Slide 11: Examples: Reorganization of central functions and related administrative functions in Germany
Examples: Reorganization of central functions and related administrative functions in Germany Stronger control and improved Move to one common IT platform transparency by shifting financial steering and controlling functions from various sub-entities to Media- Merger of operational MediaMarkt
Slide 12: Our goal is to achieve a savings run-rate of around 110-130 €m
Our goal is to achieve a savings run-rate of around 110-130 €m Sustainable savings run-rate in FY 20/21 Savings run-rate expected Opposite effect in the low double-digit €m from build-up of new personnel, e.g. in Expenses1 supply chain 110-130 €m Pay-back period of <1.5 years for program related exp
Slide 13: Total expenses to only weigh on FY 18/19 reported earnings
Total expenses to only weigh on FY 18/19 reported earnings, benefits to kick-in from next fiscal year Annual gross savings (in €m) 100-120 110-130 0-10 20 Non-cash accounting effects Total P&L expenses 34 Top management changes (in €m) (already booked in Q1) 150-170 Reorganization & Efficiency Progr
Slide 14: Our underlying assumptions for FY 18/19 are still valid
Our underlying assumptions for FY 18/19 are still valid 1 Implementation of Reorganization & Efficiency Program to start now 2 Only smaller benefits from the Program to come through in FY 18/19 3 Positive impacts from centralization and excellence to become visible gradually Reorganization & Efficie
Slide 15: The outlook for FY 18/19 remains unchanged
The outlook for FY 18/19 remains unchanged Adjusted for exchange rate effects and before portfolio changes Excludes expenses in connection with the restructuring and optimization of structures and business processes Excludes expenses for already announced management changes in top management €
Slide 16: We transform our business model and lift promised potentials
We transform our business model and lift promised potentials We focus on one thing: THE CUSTOMER. We fix the basics and lay the foundation for a sustainable This company has a great future. potential that has not been fully utilized. Reorganization & Efficiency Program Public Date: 29 April 2019 //
Slide 17: Q&A
Q&A Jörn Werner Karin Sonnenmoser Ferran Reverter Chief Executive Officer Chief Financial Officer Chief Executive Officer CECONOMY AG CECONOMY AG Media-Saturn-Holding GmbH Reorganization & Efficiency Program Public Date: 29 April 2019 // 17
Slide 18: Contact
CECONOMY AG Investor Relations Benrather Strasse 18-20 CONTACT 40213 Duesseldorf Germany Tel.: +49 (211) 5408-7222 Email: IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/ Date: 29 April 2019 // 18
Slide 19: Reorganization & Efficiency Program Public Date: 29 April 2019
Reorganization & Efficiency Program Public Date: 29 April 2019 // 19