Ceconomy Ag · XETR:CEC
Ceconomy — Ceconomy Ag Ord — Q2 2021 Earnings Presentation
32 slides from Ceconomy's earnings presentation, May 11, 2021
Slide 1: Results Presentation Q2/H1 2020/21
Results Presentation Q2/H1 2020/21 11 May 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: The second quarter again proves the resilience of our business
The second quarter again proves the resilience of our business and the steady progress of our transformation Only slight decline in sales1 and EBIT2 despite In a very challenging environment, the severe restrictions or prolonged lockdowns progress of our transformation remains well for the stationar
Slide 6: Stationary business much longer and more severely affected by COVID-19 regulations
Stationary business much longer and more severely affected by COVID-19 regulations than in prior year quarter Monthly average of open stores (% of total stores) 100% 100% 76% 59% Click & Meet1 26% 46% 37% 50% JAN 20 FEB 20 MAR 20 JAN 21 FEB 21 MAR 21 Q2 19/20 Q2 20/21 1Several stores in Germany, the
Slide 7: COVID-19-related sales disruptions interfere with a positive underlying sales trend
COVID-19-related sales disruptions interfere with a positive underlying sales trend Monthly sales1 development during the pandemic (yoy change) Exceptional sales momentum Excellent sales growth in the peak continued driven by sustained period despite increasing lockdowns strong consumer demand and s
Slide 8: H1 sales and earnings performance demonstrate the resilience of our business
In light of the persistent COVID-19 restrictions, H1 sales and earnings performance demonstrate the resilience of our business Sales1 development Adj. EBIT2 excl. associates vs. PY Q2 Q2 -5.7% -15 €m yoy H1 H1 +4.5% +41 €m yoy 1Adj. for currency and portfolio change effects. 2Adj. for portfolio chan
Slide 9: Our way forward
Our way Accelerate forward. Growth Path Build a Unique Value Proposition Create an Efficient Organization and Structure // 9 FY 19/20 Results & Strategy Update Public Date: 15 Dec 2020 // 9
Slide 10: We also remain on track in our transformation process
We also remain on track in our transformation process Create an Efficient Organization Build a Unique Value Proposition Accelerate Growth Path and Structure Implementation of monthly extended Expansion of MediaMarkt marketplace and Speed of new Operating Model warranties subscription online la
Slide 11: Financial Performance & Outlook
1 HIGHLIGHTS FINANCIAL PERFORMANCE & 2 OUTLOOK // 11
Slide 12: Sales performance impacted by long lasting lockdowns, especially in DACH
Sales performance impacted by long lasting lockdowns, especially in DACH – Strong positive trend where stationary is open Total sales Sales1 by segment (in €m) (yoy change) -5.7%1 -6.7% 4,631 33.0% 4,322 19.8% 6.5% Q2 19/20 Q2 20/21 -17.1% DACH W. &. S. EUROPE E. EUROPE OTHERS 1Adj. for currency and
Slide 13: Continued strong online momentum, demonstrating strength of omnichannel model
Continued strong online momentum, demonstrating strength of omnichannel model Online sales (in €m) +146.5% COVID-19 pandemic pushes online share to almost 50% of Group sales; significant increase also in countries 2,119 with open stores Strong uplift in traffic and conversion 859 Pick-up orders sign
Slide 14: Inhouse online sales share significantly higher than during first lockdown
Inhouse online sales share significantly higher than during first lockdown in early 2020 – and will likely remain on elevated level yoy Online1 sales (in % of sales) ~3x 73% ~2x 49.0% 35.2% 30.3% 29% 30% 18.6% 23% 15.4% 16.1% 17% 15% 17% Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 JAN FEB MAR Q1 20/21 APR M
Slide 15: Especially in Germany, our online sales growth has clearly outperformed the market
Especially in Germany, our online sales growth has clearly outperformed the market Online growth in Germany (yoy change) MediaMarktSaturn Online market 200% 150% Significant market share gain in the online channel reaching >20% in Q2 100% Online market represents almost 60% of the total CE market in
Slide 16: Services & Solutions business impacted by lockdowns and lower traffic in stores
Services & Solutions business impacted by lockdowns and lower traffic in stores Services & Solutions sales (in €m) -28.7% Subscription and power services performance down due to low B&M -25.2% adj.1 traffic and more transactional business during pandemic 279 Growing penetration of online 199 service
Slide 17: Rising online share and COVID-19 effects weigh on gross margin development
Rising online share and COVID-19 effects weigh on gross margin development Gross margin1 (in % of sales) Negative impact from channel shift -2.3%p. & logistics costs in line with rising online share 17.3% 14.9% Underlying operational goods margin showing improvement yoy Non-sustainable, negative imp
Slide 18: Improvement in operative cost performance and support from COVID-19 cost measures
Improvement in operative cost performance and support from COVID-19 cost measures OPEX1,2 (in % of sales) 132 €m Absolute cost savings Strong COVID-19-related cost -1.6%p. mitigation 20.8% 19.3% Lower personnel expenses also driven by FTE reduction and new Operating Model savings Increased transacti
Slide 19: COVID-19-related sales and gross margin decline largely compensated by cost reductions
COVID-19-related sales and gross margin decline largely compensated by cost reductions – decline in DACH region driven by severe restrictions Adj. EBIT1 excl. associates Adj. EBIT1 excl. associates by segment (in €m) (in €m) Q2 19/20 Q2 20/21 -15 €m 0 -11 -24 -21 -33 -38 -53 -131 -97 -146 DACH W. &.
Slide 20: Reported EBIT in CY supported by Fnac Darty impairment reversal
Reported EBIT in CY supported by Fnac Darty impairment reversal Adj. EBIT1 excl. associates to reported EBIT in Q2 20/21 (in €m) Related to Fnac Darty impairment reversal (150 €m) and Fnac Darty profit share (29 €m) -2 Mostly related to 179 COVID-19-related permanent store closures (-25 €m) -146 -34
Slide 21: Strong EPS improvement essentially driven by Fnac Darty impairment reversal
Strong EPS improvement essentially driven by Fnac Darty impairment reversal EBITDA to EPS (in €m) €m Q2 19/20 Q2 20/21 Change Reported EBIT in PY impacted by EBITDA 102 54 -47 Fnac Darty impairment (-268 €m), CY includes Fnac Darty impairment EBIT -368 -2 366 reversal (150 €m) Net financial result -
Slide 22: Non-recurrence of past year's payment term extensions
Non-recurrence of past year’s payment term extensions due to improvement of overall cash position – stable operative NWC trend despite COVID-19 impacts Net Working Capital (in €m) No COVID-19-related temporary payment term extensions in CY (vs. PY c. 460 €m) resulted in a normalization of 938 trade
Slide 23: Free Cash Flow development characterized by lower liquidity safeguarding measures
Free Cash Flow development characterized by deliberately lower liquidity safeguarding measures compared to prior year Yoy change Free Cash Flow in H1 20/21 (in €m) -36 -792 +26 +57 +35 -711 +10 -701 Other OCF in PY PY included 575 negatively investment in impacted by Greek JV; reversal of non- inves
Slide 24: Further course of business development in FY 20/21 subject to significant uncertainties
Further course of business development in FY 20/21 subject to significant uncertainties in light of the ongoing pandemic Uncertainties/unknowns Scenarios for FY 20/21 Sales1 development vs. PY The continuous extension of the lockdown in Germany If the lockdown in Should the catch-up Germany contin
Slide 25: Key take-aways
Key take-aways Our H1 sales and earnings performance demonstrate the resilience of our business. We are well prepared for the reopening of our stores. Succession is in place. We will have unified board structures. We will continue the transformation as planned. // 25
Slide 26: Q&A
Q&A Dr Bernhard Düttmann Florian Wieser CEO CFO // 26 Date: 15 Dec 2020 // 26
Slide 27: 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/ // 27
Slide 28: Net Working Capital
Net Working Capital €m 30/09/2019 31/03/2020 Change 30/09/2020 31/03/2021 Change Inventories 2,548 3,161 613 2,949 3,512 562 Trade receivables and similar claims 455 460 4 488 322 -166 Receivables due from suppliers 1,295 1,277 -18 1,302 1,094 -208 Trade liabilities and similar liabilities -5,321 -5
Slide 29: Store network
Store network Openings/ Closures/ 31/12/2020 Additions Disposals 31/03/2021 Germany 420 – -1 419 Austria 53 – – 53 Switzerland 25 – – 25 Hungary 32 – – 32 DACH 530 – -1 529 2 store openings in Turkey and Belgium 27 – – 27 addition of 17 Worten stores in Spain, which reopened under the Italy 117 – –
Slide 30: Financial calendar
Financial calendar Q3/9M 2020/21 Q4/FY 2020/21 FY 2020/21 results trading statement results 12 AUGUST 2021 26 OCTOBER 2021 14 DECEMBER 2021 // 30 Date: 15 Dec 2020 // 30
Slide 31: Upcoming events
Upcoming events KeplerCheuvreux CIC Market Solutions Forum Virtual Roadshow post-Q2 w/ CFO IR-only 12 MAY 2021 20 MAY 2021 // 31 Date: 15 Dec 2020 // 31
Slide 32: Date: 15 Dec 2020
Date: 15 Dec 2020 // 32