Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (July 2022)
33 slides from Fnac Darty Sa's investor presentation, July 2022
Slide 1: Investor Presentation July 2022
INVESTOR PRESENTATION JULY 2022
Slide 2: Fnac Darty at a glance
FNAC DARTY AT A GLANCE A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM 2021 revenue breakdown by category • 8.0 bn€ Group revenue in 2021 – 25,000 employees Technical products 49% • Top European Omnichannel Retailer: Editorial products 16% • 26% of total sales in 2021
Slide 3: A proven and successful omnichannel model
A PROVEN AND SUCCESSFUL OMNICHANNEL MODEL 971 multi-format stores including 405 franchises at end June 2022 c. 27M unique visitors on the e-commerce site per month on average c. 90% or Darty store within 15’of home of French people have a Fnac c. 50% of online sales are C&C AN EFFICIENT AFTER- AN AG
Slide 4: Becoming a responsible digitized retailer delivering high-value and durable services
BECOMING A RESPONSIBLE DIGITIZED RETAILER DELIVERING HIGH-VALUE AND DURABLE SERVICES 2016 - 2018 2018 - 2020 > 2021 everyday au service de nos clients everyday companion of our customers RESPONSIBLE DIGITIZED RETAILER POWERFUL BEST-IN-CLASS DELIVERING HIGH-VALUE AND LEADER OMNICHANNEL DURABLE SERVIC
Slide 5: Our strategic plan Everyday
OUR STRATEGIC PLAN EVERYDAY • 3 main ambitions to become a responsible digitized retailer delivering high-value and durable services Build a digitized omnichannel retail Scale the next in-home Lead durable subscription-based behaviors assistance service 5
Slide 6: Build a digitized omnichannel retail
BUILD A DIGITIZED OMNICHANNEL RETAIL Best-in-class online capacities >50% of total Capex invested by 2025 to offer the best experience A profitable and digitized store network, fostering the expertise of salespeople and digital footprint An uncompromised acceleration to offer high-value products to
Slide 7: Lead durable behaviors
LEAD DURABLE BEHAVIORS A more durable offer, combined with customers’ orientation towards durable products The promotion of responsible behaviors, notably through eased access to repair ASSISTANCE & REPAIR DURABLE OFFER RECYCLING 135 c.2,5M SECOND LIFE “durability score” products repaired USED PRODU
Slide 8: Scale the next in-home subscription-based assistance services
SCALE THE NEXT IN-HOME SUBSCRIPTION-BASED ASSISTANCE SERVICES Unlocking the full potential of our exclusive unlimited repairs subscription program To become the leader of in-home assistance solutions >2M subscribers to our unlimited repairs subscription program by 2025 8
Slide 9: Key drivers to generate recurring cash flows
KEY DRIVERS TO GENERATE RECURRING CASH FLOWS • Revenue growth mainly driven by increased online activity – >30% online revenue penetration by 2025 o/w 50% is click & collect • Significant contribution in gross margin of the subscription-driven service offering – >2M subscribers to our unlimited repa
Slide 10: Ensuring sustainable shareholder returns
ENSURING SUSTAINABLE SHAREHOLDER RETURNS Fund profitable growth Increased ➢ Reinvest in the business Opportunity-driven decision Free Cash Flow ➢ Tactical bolt-on M&A Incremental + + shareholder return ➢ Leverage1 of max 2.0x Controlled net debt Shareholder return policy ➢ Via special dividend or Le
Slide 11: H1 2022 Business and Strategic Review
H1 2022 BUSINESS AND STRATEGIC REVIEW 11
Slide 12: Good resilience of H1 results
GOOD RESILIENCE OF H1 €m 2022 evenue RESULTS decreased mainly due to low er sales olumes 1 2021 1 2022 han e in domestic a liances in a conte t of a ery hi h e enue 01 2 basis of com arison and articularly hi h inflation w hile ser ices osted a ood erformance ▪ H1 2022 revenue of €3,428m, down sligh
Slide 13: H1 2022 revenue by channel and product category
H1 2022 REVENUE BY CHANNEL AND PRODUCT CATEGORY ▪ By channel: • In-store sales showed solid growth in all regions with all stores reopened • Online sales amounted to 22% of total sales, up +4 pts compared with the pre-pandemic level, as digital market penetration returned to normal after two years o
Slide 14: A responsible player with a strong commitment to repairs and sustainable consumption
A RESPONSIBLE PLAYER WITH A STRONG COMMITMENT TO REPAIRS AND SUSTAINABLE CONSUMPTION ➢ First steps in the roll-out of the partnership with Apple o 143 WeFix points of service joined the network of Apple Authorized Service Providers (AASPs) in France at the + end of June and now have access to Apple
Slide 15: H1 2022 Results
H1 2022 RESULTS FNAC DARTY
Slide 16: France and Switzerland in H1 2022
FRANCE AND SWITZERLAND IN H1 2022 ▪ Resilience of sales in H1 2022 • Strong momentum in books, telephony and sound €m H1 2021 H1 2022 Change • IT equipment and TV suffered from high comparison basis Revenue 2,878 2,844 -1.2% and appliances from sluggish household consumption, which penalized volumes
Slide 17: Iberian Peninsula in H1 2022
IBERIAN PENINSULA IN H1 2022 €m H1 2021 H1 2022 Change ▪ Strong revenue growth • Significant store performance, boosted by a more Revenue 285 306 +7.1% favorable comparison basis due to the later end of lockdown measures in 2021 Current operating income -4.2 -1.9 +2.3 • All product categories sustai
Slide 18: Belgium and Luxembourg in H1 2022
BELGIUM AND LUXEMBOURG IN H1 2022 ▪ Revenue decreased mainly due to lower sales volumes €m H1 2021 H1 2022 Change in domestic appliances in a context of a very high Revenue 301 279 -7.3% basis of comparison and particularly high level of inflation, while services posted a good performance Current op
Slide 19: H1 2022 Group financial results
H1 2022 GROUP FINANCIAL RESULTS ▪ Continued tight control of operating costs €m H1 2021 H1 2022 • Most of the rise in operating costs is due to the closure of some stores last year as a result of the Covid crisis, Revenue 3,465 3,428 the PEPA bonus and the costs linked to the rolling out Gross margi
Slide 20: Free cash-flow generation
FREE CASH-FLOW GENERATION €m H1 2021 H1 2022 ▪ EBITDA at €192m including the impact of IFRS 16, down by -€18m vs. H1 2021, in line with the change in current EBITDA 210 192 operating income IFRS 16 impact -125 -126 ▪ Operating free cash-flow1 stands at -€764m, mainly Non-recurring cash elements 2 2
Slide 21: A strong liquidity position
A STRONG LIQUIDITY POSITION €m 12/31/2021 06/30/2022 ▪ Net financial debt1 amounted to €586 million at end of Shareholders’ equity 1,564 1,524 June 2022 impacted by usual seasonality of activity Net debt1 -247 586 ▪ Good cash position at €350m, thanks to solid financial Gross debt 934 936 management
Slide 22: Outlook
OUTLOOK FNAC DARTY
Slide 23: Outlook
OUTLOOK ▪ The Group has demonstrated its resilience in H1 2022 in a context of rising inflation and geopolitical uncertainties that still impact visibility in the coming months ▪ For the rest of the year, the Group: ✓ Remains fully committed to continuing to outperform the market, as it demonstrated
Slide 24: Appendices
APPENDICES FNAC DARTY
Slide 25: 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 inc
Slide 26: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 Without application of IFRS 16 EBITDA EBITDA excluding IFRS 16 Rents within the scope Current operating income before depreciation, EBITDA including rental expenses within the scope of amortization and provisions on fixed operational assets of IF
Slide 27: Q1/Q2/H1 revenue
Q1/Q2/H1 REVENUE Change vs. Q1 2021 Change vs. Q2 2021 Change vs. H1 2021 At constant FX At constant FX At constant FX and and and comparable (€m) Q1 2022 Reported Like-for-like Q2 2022 Reported comparable Like-for-like H1 2022 Reported comparable Like-for-like scope of scope of scope of consolidati
Slide 28: Cash flow statement
CASH FLOW STATEMENT €m H1 2021 H1 2022 Net Cash as at January 1 114 247 Operating free cash-flow1 -577 -764 Dividends paid -1 -55 Shareholders’ equity com onent – OCEANE bonds 21 0 Interest paid net of interest and dividends received -17 -11 Acquisition/disposal of subsidiaries net of cash transferr
Slide 29: Balance sheet
BALANCE SHEET At December 31, At June 30, At December 31, At June 30, Assets in €m Equity and Liabilities in €m 2021 2022 2021 2022 Goodwill 1,654 1,654 Share capital 27 27 Reserves related to equity 971 971 Intangible assets 528 541 Conversion reserves -6 -5 Tangible assets 575 569 Other reserves a
Slide 30: Store network
STORE NETWORK December 31, 2021 June 30, 2022 Owned Franchised Total Owned Franchised Total France and Switzerland1 413 385 798 411 400 811 Iberian Peninsula 69 5 74 69 5 74 Belgium and Luxembourg 85 0 85 86 0 86 Group 567 390 957 566 405 971 1 Including 13 stores abroad: 3 in Morocco, 4 in Tunisia,
Slide 31: Fnac Darty, a responsible company
FNAC DARTY, A RESPONSIBLE COMPANY FOCUS ON A STRONG COMMITMENT TOWARD A MORE CIRCULAR ECONOMY A strong commitment to the circular economy with a clear engagement in extending product durability through a unique service proposal 111 849 tests on 447 products A sustainability score of 111 in carried o
Slide 32: A responsible retailer recognized by external ESG organizations
A RESPONSIBLE RETAILER RECOGNIZED BY EXTERNAL ESG ORGANIZATIONS 2021 48 • Top 20% worldwide A- 100 (rank in Universe: 358/4,923) • Rank in Sector 8/74 (vs. 9/73 in 2020) Information rate of 91% • Information rate of 95% 2020 2021 Average performance of discretionary retail B- Low 7.8 11.4/ AA 12.2 2
Slide 33: 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