Teract · EURONEXT:TRACT
Teract — Investor Presentation (May 2024)
40 slides from Teract's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
Investor Presentation MAY 2024
Slide 2: Contents
Contents 01 TERACT at a glance 02 Review of activities 03 2022-2023 and H1 2023-2024 Financial highlights 04 Corporate Social Responsibility (CSR) 05 Strategy and outlook 06 Conclusion 2
Slide 3: TERACT at a glance
TERACT at a glance TERACT
Slide 4: Founders’ vision for TERACT
Founders’ vision for TERACT Pooling of the founders’ respective Serving as an incubator for high added well-known strengths in farming, retail value and renowned gardening & food and innovation with the ambition to brands, concepts and banners, with create a leading specialised retail already more t
Slide 5: A sound shareholding structure
A sound shareholding structure • Combination of agricultural, food and retail expertise of InVivo Group / InVivo Retail TERACT with the 2MX Organic SPAC in 2022: shareholders • InVivo Group: #1 agricultural cooperative in France (more than half of French farmers) / #2 in Europe with the InVivo Retai
Slide 6: Consistent building of an innovative retail platform over the years
Consistent building of an innovative retail platform over the years 1977 2014 2017 2018 2019 2020 2021 2022 2023 Creation of First opening Acquisition Acquisition Launch of the Integration of Initiation of the InVivo Retail and TERACT adopts Gamm Vert of a food retail and of Jardiland Noa banner Gam
Slide 7: A specialist retail platform with complementary businesses
A specialist retail platform with complementary businesses • Multi-banner specialist with strong Garden Centre and Pet Retail Food Retail concepts and brands • Businesses offering complementary €808.6M 1,576 87% €93.5M 138 7% Revenues stores franchised Revenues stores franchised seasonality, strong
Slide 8: Complementary retail businesses with strong growth perspectives
Complementary retail businesses with strong growth perspectives Gardening E-commerce Fresh market retail Good growth prospects for Recently developed gardening e-commerce in business, set to grow Historical business with France: overall share of 8% at a fast pace: total French a leading position in
Slide 9: Complementary stores’ locations
Complementary stores’ locations Reunion Island French Antilles 80% New Caledonia of the French population lives less than 20mn away from a TERACT point of sale 9
Slide 10: Responsible and sustainable consumption at the heart of the growth model
Responsible and sustainable consumption at the heart of the growth model Demand for Client-centric next-generation approach consumption 4 customer types Quality in gardening Durability and pet shops Traceability Enhancing the Convenience in-store shopping and value-chain experience integration throu
Slide 11: Review of activities
a} Review of activities TERACT
Slide 12: Consolidated leadership in gardening retail and development of pet food retail
Consolidated leadership in gardening retail Garden Centre and Pet Retail and development of pet food retail Gamm vert Delbard French leader with 1,153 stores, Garden centre banners focused 92% franchised, GMV of €1,349.9M; on gardening design and located historical player (since 1977) in various typ
Slide 13: Deploying the fresh Food offering
Deploying the fresh Food offering Food Retail Grand Marché Frais d’Ici La Marnière Fresh market stores Fresh covered market • 9 corners with premium stores positioning operated by local • 3 stores in the Paris area, Bio&Co • agricultural cooperatives Associated to Gamm vert acquired in 2022, 100% ow
Slide 14: Building a leading network in Bakery and Snacking
Building of a leading network in Bakery Food Retail and Snacking Boulangerie Louise • Acquisition of Boulangerie Louise in 2022 • #3 bakery and snacking network in France with 128 stores (North, West and Greater Paris area), mainly owned • 75 bakery, pastry and snacking SKUs; 100% of bread kneaded,
Slide 15: 2022-2023 and H1 2023-2024 Financial highlights
2022-2023 and H1 2023-2024 Financial highlights 03 15
Slide 16: 2022-2023 key financial highlights: Foreword
2022-2023 key financial highlights Foreword on the annual results TERACT’s 2022-2023 consolidated financial statements have been exceptionally impacted by a listing expense as a result of the merger of InVivo Retail with SPAC 2MX Organic. This listing expense was recognised as a non-cash listing ser
Slide 17: 2022-2023 key financial highlights: Revenues
2022-2023 key financial highlights Revenues Consolidated revenue: €902.1M, +10.9% vs 2021-2022 (in €M) 2022-2023 2021-2022 o/w -1.9%(1) on a comparable basis 12 months 9 months (2) Garden Centre/Pet Retail revenue of €808.6M, Revenue 902.1 648.9 growing +1.7% o/w -1.8% on a comparable basis: Adjuste
Slide 18: 2022-2023 key financial highlights: Adjusted EBITDA
2022-2023 key financial highlights Adjusted EBITDA Adjusted EBITDA: €67.5M (in €M) 2022-2023 2021-2022 • Higher energy costs partially offset by the power 12 months 9 months savings plan: 30% of energy saved thanks to the Revenue 902.1 648.9 energy consumption management platform Adjusted EBITDA 67.
Slide 19: 2022-2023 key financial highlights: Net income
2022-2023 key financial highlights Net income Net income, Group share: €(106.6)M, after: (in €M) 2022-2023 2021-2022 • Non-current items for €(92.7)M, including the 12 months 9 months recognition in 2022-2023 of a non-cash listing service Revenue 902.1 648.9 charge of €(91.4)M as part of the combina
Slide 20: 2022-2023 key financial highlights: Free cash flow & net financial debt
2022-2023 key financial highlights Free cash flow & net financial debt Free cash flow: €56.8M Net financial debt of €447.4M up YoY in relation to : • Focusing financial priorities on cash generation • Development of the Food Retail business • Sound cost and inventory management with the acquisition
Slide 21: H1 2023-2024 key financial highlights: Foreword and seasonality
H1 2023-2024 key financial highlights Foreword on the H1 results Seasonality effects TERACT’s business volume varies considerably over the course of the year, which can make it difficult to compare the consolidated financial statements for the first and second half-year periods. Seasonality effects
Slide 22: H1 2023-2024 key financial highlights: Revenues
H1 2023-2024 key financial highlights Revenues H1 Consolidated revenue: €397.3M, +11.2% vs 2022-2023 (in €M) H1 2023- H1 2022- on a reported basis 2024 2023 Garden Centre/Pet Retail revenue of €323.6M, -3.7% o/w Revenue 397.3 357.4(1) -2.8% on a comparable basis: Adjusted EBITDA(2) 7.3 (0.8) • In li
Slide 23: H1 2023-2024 key financial highlights: Adjusted EBITDA & Net Income
H1 2023-2024 key financial highlights Adjusted EBITDA & Net Income Adjusted EBITDA: €7.3M, growing +€8.1M (in €M) H1 2023- H1 2022- • Food Retail: full integration of Boulangerie Louise and 2024 2023 Grand Marché La Marnière Revenue 397.3 357.4 • Garden Centre / Pet Retail: improved margins thanks A
Slide 24: H1 2023-2024 key financial highlights: Free cash flow & net financial debt
H1 2023-2024 key financial highlights Free cash flow & net financial debt Free cash flow of €(62.1M) Net financial debt of €534.2M : • Cash flow improved by €8.7M thanks to higher EBITDA • o/w €332M with InVivo Group and €213.2M in rental • Change in WCR notably impacted by the acceleration liabilit
Slide 25: Corporate Social Responsibility
Corporate Social Responsibility 04 25
Slide 26: A raison d’être embodying the Group's values and actions
A "raison d’être" embodying the Group's values and actions With each day bringing further evidence of the growing need to radically overhaul human production and consumption methods, TERACT has adopted a “raison d’être” in alignment with its goals under the PACTE Law with the aim of reshaping the fu
Slide 27: Leveraging the 3 CSR strategic pillars
Leveraging the 3 CSR strategic pillars Products Engaging with stakeholders Building a range of healthy, Engaging with employees and stakeholders responsible products and services across the Group to achieve our social and providing access to them Activities ambitions and meet new consumer Conducting
Slide 28: Commit to strong CSR targets by 2030
Commit to strong CSR targets by 2030 2022-2023 (1) results Products By 2025, 80% of exclusive own brands with a positive impact 54.4% Products and packaging Activities By 2025, 50% less workplace accidents vs 2020 (i.e. TF 15 vs 30) 27.8 By 2030, a 46% reduction in scope 1 & 2 in greenhouse gas emis
Slide 29: Focus 1 – Environmental preservation
Focus 1 – Environmental preservation “CITRON plan”: monitoring electrical consumption in real time in stores via a platform Test to install solar panels on store locations Deployment of the power savings (16 in trial so far) plan: raise awareness of employees, reduce heating temperature, reduce ligh
Slide 30: Focus 2 – Employees' and customers' well-being
Focus 2 – Employees' and customers' well- being 54.4% of the reference of own-brand products A comprehensive training offering… with a positive impact 1,800 references tested on 5 criteria: Bienvenue “Managers par nature” Digic@ampus 01 Origin of manufacture Campus Nature & Talents 02 Production con
Slide 31: Focus 3 – Sector strategy: Boulangerie Louise supply chain
Focus 3 – Sector strategy: leading by example with the Boulangerie Louise supply chain Ambition to become the #1 bakery network to support the wheat sector's Strong commitment to commitment to reduce its support the transition of carbon footprint through French agriculture: unique innovative farming
Slide 32: Strategy and outlook
Strategy and outlook TERACT
Slide 33: New commercial strategy for Gardening and Pet Food & Pet Care retail
New commercial strategy for Gardening and Pet Food & Pet Care retail based on an evolved offer and own brand development Focused on the Strong Fluid omni- end-user private label channel An optimised experience development distribution primarily focused on end-users and not Shift to a more balanced S
Slide 34: Food share to continue to increase in the mix
Food share to continue to increase in the mix Food share to continue to grow Continuous optimisation in the mix of the garden centres network 01 Acquisition of Boulangerie Louise 01 Reshuffling of existing stores 02 New stores opening 02 Franchise development 03 Franchise development 03 Organic grow
Slide 35: Further omni-channel & digital strategy
Further omni-channel & digital strategy based upon existing strong assets Reshuffling of the Building of a multi-brand Click-and-collect existing platforms marketplace optimisation Reshuffling of existing online tools Transformation towards a unique Recently launched on Jardiland.com for an optimise
Slide 36: 2023-2024 operating and financial outlook (1/2)
2023-2024 operating and financial outlook (1/2) Amid persistent macroeconomic pressures in the second half of 2023 (first half of TERACT’s 2023- 2024 financial year) and uncertainty as to how the situation will evolve in the first half of 2024 (second half of TERACT's 2023-2024 financial year), the
Slide 37: 2023-2024 operating and financial outlook (2/2)
2023-2024 operating and financial outlook (2/2) This will be underpinned by an attractive omnichannel model that is a leader in the sector in France, as part of an overhaul of the e-commerce websites and a renewed focus on stores at the core of the digital strategy through the repayment of revenue T
Slide 38: Conclusion
38 Conclusion TERACT
Slide 39: The best placed retailer to capture new consumption habits
The best placed retailer to capture new consumption habits Ongoing offer transformation Opportunity to invest in a with own brand development unique retail platform, at the and supply chain optimisation to heart of new consumption increase profitability habits with a unique portfolio of powerful con
Slide 40: Disclaimer
Disclaimer This document has been prepared for information purposes only. This document does not constitute an offer to sell nor a solicitation to purchase TERACT shares in any country, including France. The dissemination, publication or distribution of this document may be subject to specific regul