Cnova NV — Investor Presentation (June 2021)
157 slides from Cnova NV's investor presentation, Jun 7, 2021
Slide 1: Analyst Presentation
7 JUNE 2021 ANALYST PRESENTATION
Slide 2: Disclaimer (1/2)
DISCLAIMER (1/2) NEITHER THIS DOCUMENT NOR ANY COPY OF IT MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR TO ANY PERSON IN ANY OF THOSE JURISDICTIONS. IMPORTANT NOTICE - YOU MUST READ THE FOLLOWING BEFORE CONTINUING The following applies to this document, the oral p
Slide 3: Disclaimer (2/2)
DISCLAIMER (2/2) NEITHER THIS DOCUMENT NOR ANY COPY OF IT MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR TO ANY PERSON IN ANY OF THOSE JURISDICTIONS. IMPORTANT NOTICE - YOU MUST READ THE FOLLOWING BEFORE CONTINUING No representation or warranty, express or implied,
Slide 4: Today's Agenda
TODAY’S AGENDA Time Section Agenda Presenters Page 08:30 Section 1 Our story Emmanuel Grenier 6 09:00 Section 2 B2C Business Hugo Larricq / Thomas Métivier 24 09:25 Section 3 B2C Marketing Antoine Pierart / François Marical 49 09:50 Section 4 Digital marketing Thomas Métivier 72 10:15 Q&A 10:45 Sect
Slide 5: Cnova Management Team
CNOVA MANAGEMENT TEAM B2C Team Corporate Team Farid Jehan Antoine Pierart Maxime Dubarry Marie Even Deputy CEO B2C Marketing Deputy CEO B2C Commercial CFO Director Director General Secretary 21 years at Cnova 10 years at Cnova 4 years at Cnova 12 years at Cnova B2B Team Tech & Data Team Emmanuel Gre
Slide 6: Our Story
1 OUR STORY Emmanuel Grenier CEO
Slide 7: Building the first tech-enabled ecosystem of marketplaces
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. OUR MISSION “Building the first tech-enabled ecosystem of marketplaces” 1 2 A leading French Leveraging our technology to e-commerce platform empower global marketplaces Source: Company information 7
Slide 8: Cnova is a leading European tech e-commerce player at scale
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. CNOVA IS A LEADING EUROPEAN TECH E-COMMERCE PLAYER AT SCALE Marketplace Customers SKUs 100m 23m Unique Monthly Visitors(1) 2 Loyalty program Merchants(6) 14k 2.3m CDAV(2) members €4bn 7.0% GMV Market share(4) Digital marketing 31% 10.3m Active customers growth
Slide 9: Spearheading the e-commerce evolutions for two decades
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. SPEARHEADING THE E-COMMERCE EVOLUTIONS FOR TWO DECADES …to an e-commerce leader with a strong …and a growing From a pioneering pure e-retailer… B2B platform marketplace… 2018 Acceleration of Assets built for …leveraged as Digital Marketing Cdiscount.com… winning
Slide 10: Leading European e-commerce platform with ambition to become global B2B marketplace champion
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. LEADING EUROPEAN E-COMMERCE PLATFORM WITH AMBITION TO BECOME A GLOBAL B2B MARKETPLACE ECOSYSTEM CHAMPION Strong B2C growth and profitability opportunity on Cdiscount.com: accelerating our marketplace and marketing digital services 1 accelerating our profitabl
Slide 11: Cnova is benefiting from a growing French ecommerce market
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 1 CNOVA IS BENEFITING FROM A GROWING FRENCH ECOMMERCE MARKET …and high growth potential for e-commerce, Established local leader with strong market position… especially marketplace Online retail market shares in France(1), 2020 French e-commerce market size(3) (€
Slide 12: Strong and profitable ecommerce platform
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 1 STRONG AND PROFITABLE ECOMMERCE PLATFORM Powerful hybrid model Multi-specialist strategy boosting monetisation to cover customers needs 15 categories Strong EBITDA growth Unique Marketplace (3P) platform Others Consumer Fashion electronics 14k merchants(1)
Slide 13: Marketplace drives growth and profitability
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. STRONG AND PROFITABLE ECOMMERCE PLATFORM 1 MARKETPLACE DRIVES GROWTH AND PROFITABILITY GMV marketplace Marketplace share Levers for marketplace growth In €bn In % of total GMV(1) 2025 target c.60% 1 Wide & qualitative offering 1.5 +14% CAGR +13 pts growth 44% # M
Slide 14: Digital marketing increases monetization of our B2C platform
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. STRONG AND PROFITABLE ECOMMERCE PLATFORM 1 DIGITAL MARKETING INCREASES MONETIZATION OF OUR B2C PLATEFORM Growing demand for digital retail media In-house adtech platform leveraging our assets Generating strong profitability Growth of self-service platform Partner
Slide 15: Acceleration opportunity through additional marketing investments
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. STRONG AND PROFITABLE ECOMMERCE PLATFORM 1 ACCELERATION OPPORTUNITY THROUGH ADDITIONAL MARKETING INVESTMENTS Very strong marketing …leading to cost efficient …and ample room to accelerate performance… marketing investments… Powerful brand 2020 Marketing expenses
Slide 16: Leveraging marketplace leadership to unlock global B2B opportunity
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. LEVERAGING MARKETPLACE LEADERSHIP BUILT FOR CDISCOUNT 2 TO UNLOCK GLOBAL B2B OPPORTUNITY Strong marketplace virtuous circle built for Cdiscount… …unlocks global opportunity as marketplace solution provider More products Global CAGR 1P sales 3P sales & better pric
Slide 17: We bring the right solutions to make marketplaces successful
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 2 WE BRING THE RIGHT SOLUTIONS TO MAKE MARKETPLACES SUCCESSFUL The ecosystem must overcome hurdles to be successful… …driving real demand for Octopia solutions Interest in adding "plug-and-play" Comprehensive solutions Website perspective After one year of operat
Slide 18: We have the assets and the scale to go global
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 2 WE HAVE THE ASSETS AND THE SCALE TO GO GLOBAL Octopia leverages the best of Cdiscount’s marketplace assets… …to become the leading marketplace ecosystem by 2025 14k 100 M 2.7k merchants Significant merchants products using our Fulfilment >50k >15,000 contributi
Slide 19: Sustainable operational excellence built on differentiated technology
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 3 SUSTAINABLE OPERATIONAL EXCELLENCE AT SCALE BUILT ON DIFFERENTIATED TECHNOLOGY Leveraging strong data management skills to convert sales and retain customers Highly invested front-edge technology infrastructure ~850 tech people 14,000 Merchants(1) Operating at
Slide 20: Unique logistics built for Cdiscount and already monetizing
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 3 UNIQUE LOGISTICS BUILT FOR CDISCOUNT AND ALREADY MONETIZING Innovative distribution Extensive national footprint allowing fast delivery centers Strong ESG commitment 3D picking robot Lille (1) Strasbourg #1 Rennes Paris Europe Zero product destruction policy Na
Slide 21: Profitable and fast-growing platform
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 4 PROFITABLE AND FAST-GROWING PLATFORM… High GMV growth driven by marketplace Stable sales due to strategic 3P shift Focus on FY2020 performance GMV (€m) Net sales (€m) 18A-20A 18A-20A 18-20 CAGR CAGR 18-20 CAGR CAGR 44% share of marketplace +7.4% +1.2% in GMV (+
Slide 22: Clear path for acceleration and significant margin expansion
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. 4 …WITH CLEAR PATH FOR ACCELERATION AND SIGNIFICANT MARGIN EXPANSION 2025 target >€12bn GMV 2020A €4bn GMV Leveraging Cnova’s existing platform B2C B2B B2C Marketplace Ecosystem Leader Online Platform at Scale B2B …to double-digit From single digit EBITDA margin
Slide 23: Our vision: first marketplace ecosystem leader
1. OUR STORY 2. 3. 4. 5. 6. 7. 8. 9. OUR VISION: DEVELOPING AN ALTERNATIVE BUSINESS MODEL TO BECOME THE FIRST MARKETPLACE ECOSYSTEM LEADER Next marketplace ecosystem leader with complementary e-commerce platform and B2B offer Global e-commerce giant pushing its brand internationally Strong local pla
Slide 24: B2C Business
2 B2C BUSINESS Thomas Métivier Hugo Larricq Head of Deputy B2C Marketplace, Commercial CEO of Octopia Director
Slide 25: Our key pillars building best-in-class performance
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. OUR 5 KEY PILLARS BUILDING BEST-IN-CLASS PERFORMANCE Audience Marketplace Promotions Logistics CB4X Marketplace Strength of Delivery offer for 10.3m Active customers Top player in Europe 1st Cdiscount Unique bulky products Unique Value proposition 23m Unique v
Slide 26: Undisputed e-commerce challenger in France
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. UNDISPUTED E-COMMERCE CHALLENGER IN FRANCE #2 player in France with #3 far behind 2020 online retail market shares in France (1) Average unique monthly visitors(2) (in m) 19.1% 34 23 7.0% 17 3.3% 2.8% 13 13 2.3% 1.9% 1.7% 11 11 1.6% Leadership on selected cate
Slide 27: Our ambition: accelerate GMV growth through hybrid model
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. OUR AMBITION: SIGNIFICANTLY ACCELERATE TO DRIVE GMV GROWTH THROUGH HYBRID MODEL Consolidate our position on 1 technical products and improve our profitability Maintain strong Direct sales while 1P improving profitability Accelerate our development on non-techn
Slide 28: Agenda
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. AGENDA 1 Consolidate technical products 2 Accelerate non-technical products Be marketplace leaders and keep accelerating on it to drive our growth and 3 profitability 28
Slide 29: Cdiscount is among the top players in technical products
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Consolidate technical CDISCOUNT IS AMONG THE TOP PLAYERS IN TECHNICAL PRODUCTS products 1 Technical goods A €24bn market with an online penetration rate >25%(1) Cdiscount represents: 3 axes of development: 1 large appliance over 3 sold online Develop partnersh
Slide 30: Develop partnerships with leading brands
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Consolidate technical A DEVELOP PARTNERSHIPS WITH LEADING BRANDS products 1 1P 20 international innovative brands asked by our clients 20 brands Why Cdiscount is a key What the brands provide: ➔ Strengthen our branding partner to brands: Traffic and visibili
Slide 31: Leadership on entry-level products thanks to private labels
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Consolidate technical B LEADERSHIP ON ENTRY-LEVEL PRODUCTS THANKS TO OUR PRIVATE LABELS products 1 1P Our private label helps us to: White goods & High tech small appliances ➔ Keep control on the commercial policy (independence with the brands) ➔ Offer strong
Slide 32: Develop the marketplace to complete the offer and improve profitability
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. C DEVELOP THE MARKETPLACE TO COMPLETE THE OFFER AND IMPROVE Consolidate technical products PROFITABILITY 1 3P Share of marketplace growing from 33% to c.40%(1) More competitiveness More merchants WHY? HOW? Higher profitability More fulfilment Source: Company i
Slide 33: Agenda
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. AGENDA 1 Consolidate technical products 2 Accelerate non-technical products Be marketplace leaders and keep accelerating on it to drive our growth and 3 profitability 33
Slide 34: A differentiated multi-specialist strategy
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Accelerate non- A DIFFERENTIATED MULTI-SPECIALIST STRATEGY technical products 2 Strategic presence on selected verticals… A true specialist offer… Shift towards non-technical underpenetrated categories and progressive exit from loss-making products Strong asso
Slide 35: Non-technical products: strong opportunity for growth and profitability
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. NON-TECHNICAL PRODUCTS: STRONG OPPORTUNITY FOR GROWTH AND Accelerate non- technical products PROFITABILITY 2 Leverage on Cnova assets to accelerate non-technical Non-technical products products Current market share of Cdiscount(1) + ➔ Sell-out boosters: Logist
Slide 36: The example of Home: strong growth opportunity
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Accelerate non- THE EXAMPLE OF : STRONG GROWTH OPPORTUNITY technical products 2 A market with a strong potential Cdiscount Home: 2nd brand awareness(3) Chart Title €12bn 50 Furniture, sofa and bedding market size (2020)(1) A low e-commerce penetration rate(2)
Slide 37: Leading position in furniture thanks to a specialist approach - offer
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. THE EXAMPLE OF : LEADING POSITION ON THE FURNITURE Accelerate non- technical products CATEGORY THANKS TO A SPECIALIST APPROACH - OFFER 2 A renewed offer – a specialist approach by Cdiscount A large offer Design office 10 styles each year Scandinavian Count
Slide 38: Leading position in furniture - sourcing
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. THE EXAMPLE OF : LEADING POSITION ON THE FURNITURE Accelerate non- technical products CATEGORY THANKS TO A SPECIALIST APPROACH - SOURCING 2 Sourcing 130 suppliers 40% in Europe, 40% in Asia and Ukraine Direct 20% in France Romania A sourcing quality as a
Slide 39: Leading position in furniture - advertising
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. THE EXAMPLE OF : LEADING POSITION ON THE FURNITURE Accelerate non- technical products CATEGORY THANKS TO A SPECIALIST APPROACH - ADVERTISING 2 A strong marketing strategy Cdiscount Home: evolution of brand awareness(1) Brand awareness >1m followers on 50 36
Slide 40: Gaining pace on non-technical goods: our next two markets
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Accelerate non- GAINING PACE ON NON-TECHNICAL GOODS: OUR NEXT TWO MARKETS technical products 2 A historical know-how to be replicated to other universes with strong potential Sports Garden DIY Market size ++ +++ Cdiscount ranking(1) #4 #3 Penetration rate(2) 1
Slide 41: Agenda
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. AGENDA 1 Consolidate technical products 2 Accelerate non-technical products Be marketplace leaders and keep accelerating on it to drive our growth and 3 profitability 41
Slide 42: We bring together all the pieces which unlock marketplace growth
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Marketplace leaders WE BRING TOGETHER ALL THE PIECES WHICH UNLOCK MARKETPLACE GROWTH 3 Merchant recruitments Commercial deals and Strong Logistics and onboarding price competitiveness quality performance Technological leadership End-to-end customer experience
Slide 43: We master merchants' recruitment and onboarding
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. WE MASTER MERCHANTS’ RECRUITMENT AND ONBOARDING, DRIVING Marketplace leaders MARKETPLACE GROWTH 3 FR EU >90% 14k FR EU 50% >50k RoW EU Top Merchants(1) EU Top 5k merchants 20k CN CN Make it easy Target and recruit top merchants Support their sales development
Slide 44: Working with our merchants, we create commercial competitiveness
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Marketplace leaders WORKING WITH OUR MERCHANTS, WE CREATE COMMERCIAL COMPETITIVENESS 3 1 Follow prices Recruit the most Efficient tools to help on the market competitive merchants them increase their sales We select the best merchants >1m products Crawling of
Slide 45: We create high-quality experience for our customers
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Marketplace leaders WE CREATE HIGH-QUALITY EXPERIENCE FOR OUR CUSTOMERS 3 3 actions to improve merchants’ quality 1 2 3 Product information Delivery quality Customer relationship Every-day tracking: Self-service tools available for Customer relationship
Slide 46: We bring to our merchants and customers the best of logistics
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Marketplace leaders WE BRING TO OUR MERCHANTS AND CUSTOMERS THE BEST OF LOGISTICS 3 An end-to-end logistics solution already used by 2,700 merchants at the core of marketplace growth Merchants We store the Merchants We prepare We manage # fulfilled parcels sen
Slide 47: We will be the merchants' favorite partner in Europe
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Marketplace leaders WE WILL BE THE MERCHANTS’ FAVORITE PARTNER IN EUROPE 3 Capitalize on marketplace excellence Give them the right tools to develop their business Recruit and onboard top ➔ merchants Digital marketing Build commercial dynamism ➔ with them Oper
Slide 48: Evolution towards a more profitable and growing model
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. EVOLUTION TOWARDS A MORE PROFITABLE AND GROWING MODEL Focus on brands driving traffic Leading to strong growth Strong Transfer of loss-making products to and profitability outlook direct sales marketplace Dynamic pricing Evolution of GMV split (illustrat
Slide 49: B2C Marketing
3 B2C MARKETING Antoine Pierart François Marical Data Science & B2C Marketing Innovation Director Director
Slide 50: A highly calibrated marketing action plan at every step of the customer journey
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. A HIGHLY CALIBRATED MARKETING ACTION PLAN AT EVERY STEP OF THE CUSTOMER JOURNEY RETAIN CUSTOMERS C A Data CAPTURE driven TRAFFIC TRIGGER BUY B Source: Company information 50
Slide 51: A leadership position on the French market
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. A LEADERSHIP POSITION ON THE FRENCH MARKET HIGHLY RECOGNIZED #2 58% BRAND Brand spontaneous E-commerce player(1) awareness(1) HIGH CUSTOMER 47 95% SATISFACTION Net Promoter Score First contact resolution POSITIVE TRAFFIC 23m c.75% MOMENTUM Unique visitors/mon
Slide 52: A unique cross-functional marketing organization
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. A UNIQUE CROSS-FUNCTIONAL MARKETING ORGANIZATION, WITH 50% TECH-DATA PROFESSIONALS 240 professionals, 50% tech-data A constant focus on innovation Embedded reference tools Data Business Tech Close collaboration with digital giants GROW FIND BUY CARE RETAIN Ex
Slide 53: Capture traffic
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. CAPTURE TRAFFIC 1 2 French leader Highly with high share recognized of free traffic brand 3 Strong RETAIN community on CUSTOMERS social networks C A 4 Data CAPTURE Strong organic driven TRAFFIC visibility 5 In-house SEA expertise TRIGGER BUY B Source: Company
Slide 54: The French leader with high share of free traffic
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. 1 THE FRENCH LEADER WITH HIGH SHARE OF FREE TRAFFIC Undisputed number #2… …with a solid and growing audience… …allowing for c.75% of free traffic(3) Average unique visitors/month for Q1 2021 (in million)(1) Yearly average unique visitors/month (in million) 17
Slide 55: The French e-commerce brand, with high potential to grow
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. 2 THE FRENCH E-COMMERCE BRAND, WITH HIGH POTENTIAL TO GROW 2nd most recognized site… …and well positioned on the French market (9 websites) 85% Market average #2 Attractive prices Price Confidence 140 Many promotions leadership Unavailable 104 163 Products or
Slide 56: Strong communities on social networks, boosting the brand
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. 3 STRONG COMMUNITIES ON SOCIAL NETWORKS, BOOSTING THE BRAND Targeting >5m followers on social platforms (in k)… …with strong and dedicated communities 1 leading community >1m fans in 2021 3,100 2,862 2,517 1,100 881 384 >0.5m fans in 2021 2019 2020 Target 202
Slide 57: A powerful organic visibility (SEO) growth based on tech and data
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. 4 A POWERFUL ORGANIC VISIBILITY (SEO) GROWTH BASED ON TECH & DATA Strong technical assets leveraging large and fast-growing product offering EXPLORATION INDEXING RANKING Ensure Google bot can browse Make the difference against Answer all customers’ quer
Slide 58: In-house SEA expertise driving profitable growth
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. 5 IN-HOUSE SEA EXPERTISE DRIVING PROFITABLE GROWTH 2016 2017 2018 2019 2020 Automatic Bidding at SKU Long term Budget allocation In-house keyword level profitability algorithm bidding algorithm generation (vs. category) optimization +30% uplift +30% uplift +1
Slide 59: Trigger buy
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. TRIGGER BUY RETAIN CUSTOMERS C A Data CAPTURE driven TRAFFIC TRIGGER BUY B 1 2 3 4 5 Mobile Improving Continuous Unique experience at the customer improvement of personalization 4 times payment heart of the experience the search engine for customers strategy
Slide 60: Bringing customer experience at scale
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. 1 BRINGING CUSTOMER EXPERIENCE AT SCALE Where we are now €4bn x4 vs. 2010 GMV 100m X1,000 vs. 2010 references Source: Company information 60
Slide 61: Mobile: 72% of traffic at the highest standards of UX
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Browse 2 MOBILE: 72% OF TRAFFIC AT THE HIGHEST STANDARDS OF UX Find Attractive mobile customer experience “Fast” on every Google page experience criteria Buy 72% Of traffic 53% of GMV 4.5/5 App rating(1) Strong improvement of Cdiscount performance #23 #4 5m d
Slide 62: Step 1: unique scoring to push forward our 10% best offers
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Browse 3 STEP 1: UNIQUE SCORING TO PUSH FORWARD OUR 10% BEST OFFERS Find A consistent and centralized tool to rate 100m products to guarantee the consumers Buy with a large qualitative, innovative and good value for money products/offers Delivery Price Descri
Slide 63: Step 2: powerful search engine to find the best offer
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Browse 3 STEP 2: POWERFUL SEARCH ENGINE TO FIND THE BEST OFFER Find Continuous improvement of the search engine to answer 1bn queries per year Buy Requests “Large screen TV” “TV 75 inches” Semantics: regroup requests and Deep learning 2021 products with the s
Slide 64: Step 3: personalized products account for 15% of sales
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Browse 4 STEP 3: PERSONALIZED PRODUCTS ACCOUNT FOR 15% OF SALES Find 15% of sales realized thanks to personalized carousels Zoom: the improvement of our cross-sell carousel in 2020 Buy 4bn 100m+ 15m+ Carousels Basket additions Clicks per year displayed per ye
Slide 65: Leverage instalments payment as a powerful conversion tool
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Browse 5 LEVERAGE 4 INSTALMENTS PAYMENT AS A POWERFUL CONVERSION TOOL Find Optimize 4 instalments payment display Compare clients to detect potential fraud Buy For each basket we evaluate the opportunity to propose payment C : Crypted card number in 4 install
Slide 66: Retain customers
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. RETAIN CUSTOMERS 1 Marketing strategy to increase LTV 2 “Say yes to customers” RETAIN policy CUSTOMERS C A 3 Maximize Data CAPTURE repurchase rate driven TRAFFIC 4 CDAV program to improve retention TRIGGER BUY B Source: Company information 66
Slide 67: Developing the life-time value of 10m clients
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Afterbuy 1 DEVELOPING THE LIFE-TIME VALUE OF 10M CLIENTS Retention Active clientele from both retained and renewed base Acceleration of clients base growth(1) Loyalty Active customer base as of Dec-20 (in m) +11.7% +12.0% 2.9m New clients 10.3m Active clients
Slide 68: Continuously improving customer satisfaction, targeting NPS of 60
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Afterbuy 2 CONTINUOUSLY IMPROVING CUSTOMER SATISFACTION, TARGETING NPS OF 60 Retention Increasing satisfaction at every step of the purchasing Significant improvement of global NPS journey Loyalty +10pts Navigation Delivery Customer care +60 +4pts +4pts +5pts
Slide 69: Priority to new customers retention in year 2
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Afterbuy 3 PRIORITY TO NEW CUSTOMERS RETENTION IN YEAR 2 Retention Historical customer patterns are very stable Clear objective to improve retention in Year 2 Loyalty Key priority Continuous improvement of customer experience and a 1 dedicated customer servic
Slide 70: Loyalty program: targeting 3.3m members
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. Afterbuy 4 LOYALTY PROGRAM: TARGETING 3.3M MEMBERS Retention “Cdiscount à volonté” program 2025 Ambition Loyalty Number of CDAV members (m) 3x Higher frequency vs. non members 3.3 +1m €29 per year 2.3 >1,650 SKUs(1) Free / Unlimited deliveries Chart Title 1,6
Slide 71: Increase marketing investment to leverage strong LTV
1. 2. 3. B2C MARKETING 4. 5. 6. 7. 8. 9. INCREASE MARKETING INVESTMENT TO LEVERAGE STRONG LTV FOR PROFITABLE GROWTH A robust marketing modeling Our convictions to drive growth of LTV(1) generated for €1 CAPTURE Develop brand through €6 invested in marketing TRAFFIC year-round TV presence New client
Slide 72: Digital Marketing
4 DIGITAL MARKETING Thomas Métivier Head of Marketplace, CEO of Octopia
Slide 73: Brands are shifting their ad spending to e-retailers
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. BRANDS ARE SHIFTING THEIR AD SPENDING TO E-RETAILERS, … Resulting in new expectations from Quick evolution of the advertising market merchants and retailers Sales-focused marketing strategy Rise of Programmed death of cookies performance-based advertising
Slide 74: Accelerating digital and retail media growth
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. …ACCELERATING DIGITAL AND RETAIL MEDIA GROWTH E-retailers market share is booming as brands are increasingly Untapped room to growth in digital advertising market shifting to retail media Global advertising market size by 2024 (and 2020-24 CAGR) E-retaile
Slide 75: Cnova is leveraging its assets in a strong virtuous circle
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. …AND CNOVA IS LEVERAGING ITS ASSETS IN A STRONG VIRTUOUS CIRCLE …already generating strong growth …and accelerating in High quality assets to leverage… on platform model… a powerful virtuous circle Strong growth of self-service platform Traffic Partners c
Slide 76: Strong in-house adtech platform delivering digital marketing service
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. STRONG IN-HOUSE ADTECH PLATFORM TO DELIVERING BEST-IN-CLASS DIGITAL MARKETING SERVICE Single interface to pilot and optimize their marketing investments Tools to cover the full conversion funnel 1 2 3 More sales for our partners More traffic on Cdisco
Slide 77: How we boost traffic for our merchants
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. 1 HOW WE BOOST TRAFFIC FOR OUR MERCHANTS? We invest our clients’ marketing budgets to generate traffic on their products on Cdiscount.com We offer stronger ROI than their usual SEA operations thanks to: In-house bidding algorithms to reach cost/visit
Slide 78: How we increase visibility of our partners' products
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. 2 HOW WE INCREASE VISIBILITY OF OUR PARTNERS’ PRODUCTS? We create campaigns or operations for our partners to promote their products on Cdiscount.com website Our partners’ products are displayed automatically along customer journey (search results, prod
Slide 79: How we boost conversion of product sales
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. 3 HOW WE BOOST CONVERSION OF PRODUCT SALES? We help our partners create campaigns to offer discounts to targeted customers to drive conversion Smart coupons Loyalty program discounts Customer behavior monitoring Score customer probability to buy Def
Slide 80: Implementation of the digital marketing platform as a future growth driver
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. IMPLEMENTATION OF THE DIGITAL MARKETING PLATFORM AS A FUTURE GROWTH DRIVER Case study: Sponsored products 2019: 2021: Development phase of the 2020: 2025: Through external Development and marketing lever Internalisation Expansion platform automation >€11
Slide 81: Successful deployment of Cnova's Ads Retail solution
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. SUCCESSFUL DEPLOYMENT OF CNOVA’S ADS RETAIL SOLUTION… Case Study: a multinational 1P electronics supplier Case Study: a top 3P housing category merchant Proven effectiveness demonstrated by strong returns Strong performance improvement at a short period o
Slide 82: Modular approach to scale and capture growth opportunities
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. …WITH MODULAR APPROACH TO SCALE AND CAPTURE GROWTH OPPORTUNITIES User interface Marketing levers Marketing channels External acquisition Campaigns solution 14k+ merchants Budgets Single Sponsored products interface solution KPI / Results 1k+ suppliers Rep
Slide 83: Digital marketing, a key driver of Cnova acceleration
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. DIGITAL MARKETING, A KEY DRIVER OF CNOVA ACCELERATION Unique assets and know-how… … to drive high margins and cash flows generation Growing with increasing sales …and strong cash 1 contributions and room for 2 generation profitability improvement… Self-se
Slide 84: White-label platform for retailers
1. 2. 3. 4. DIGITAL MARKETING 5. 6. 7. 8. 9. STRONG UPSIDE OPPORTUNITY LEVERAGING OUR INTERNAL ASSET AS A WHITE-LABEL PLATFORM FOR RETAILERS We are building a white label Ads Retail Solution platform Accelerated go-to-market + External acquisition solution (GS, Facebook, Criteo) White Label Ads Reta
Slide 85: Octopia
5 OCTOPIA Thomas Métivier Head of Marketplace, CEO of Octopia
Slide 86: Agenda: Bring the full power of marketplaces to the ecommerce ecosystem
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. AGENDA 1 Business opportunity There is a significant worldwide demand by online retailers for tech- enabled solutions Bring the full power 2 Our offering of marketplaces We are leveraging our assets and 20 years of experience to provide a to the ecommerce unique se
Slide 87: Marketplace has become the most attractive e-commerce model
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 1 MARKETPLACE HAS BECOME THE MOST ATTRACTIVE E-COMMERCE MODEL… Worldwide e-commerce growth fuelled by marketplace E-commerce is shifting towards the 3P marketplace model Worldwide e-commerce turnover, consumer goods B2C excl. services(1) (in $m) 1P sales CAGR 14-21
Slide 88: The marketplace ecosystem is struggling to develop rapidly
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 1 …HOWEVER, THE MARKETPLACE ECOSYSTEM IS STRUGGLING TO DEVELOP RAPIDLY… Major challenges Description Quotes These challenges strengthen the appeal for an Need for a large product base to After one year of operations we had recruited 16 outsourced solution Grow to
Slide 89: A new compelling and disruptive value proposal
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 1 …AND NEED A NEW COMPELLING AND DISRUPTIVE VALUE PROPOSAL Current ecosystem is not efficient... ...and Octopia provides the right solutions to succeed Principles of Octopia platform Advantages of Octopia platform Marketplace projects are often disappointing Bring
Slide 90: Octopia is perfectly placed to leverage its existing assets
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 2 OCTOPIA IS PERFECTLY PLACED TO LEVERAGE ITS EXISTING ASSETS… Leveraging on 4 major existing assets Large product Efficient Proprietary marketing Unique logistics assets and merchant base tech modules digital tools Merchants onboarding and Advanced marketing tools
Slide 91: A unique set of modular and independent solutions
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 2 …OFFERING A UNIQUE SET OF SOLUTIONS THAT ARE MODULAR AND INDEPENDENT… Octopia operates through a well-defined range of independent services Power of value Value proposal Business model Commercial development proposal 1 Add products to Accelerating commercial roll
Slide 92: A unique and holistic value proposition
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 2 …WITH A UNIQUE AND HOLISTIC VALUE PROPOSAL E-commerce Marketplace Feed & channel IT-focused platforms platforms managers consultancies Selected technology providers Proprietary tech platform ~ Unparalleled product & merchant base Limited Superio
Slide 93: Opening new business opportunities for merchants
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 2 OPENING NEW BUSINESS OPPORTUNITIES FOR MERCHANTS… Merchants Perspective Without With Ability to join thousands Accessible Only marketplaces All Octopia websites of sales channels websites Onboarding to Manual 1-click thanks to every website with banking KYC Cnova
Slide 94: Giving access to the top table to retailers and e-commerce players
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 2 …AND GIVING ACCESS TO THE TOP TABLE TO RETAILERS AND E-COMMERCE PLAYERS Retailers and e-com. players perspective Without With Ability to compete with leading marketplaces Costly integration with Integration with Integration multiple partners only one partner Ef
Slide 95: Octopia in action: showcasing our proposition
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 2 OCTOPIA IN ACTION – SHOWCASING OUR PROPOSITION Existing marketplace Case study Case study • Leading e-commerce in Tier 2 country with strategic switch to • Strong food retailer in France marketplace Partner • Need to transform its food “drive” website into a food
Slide 96: A powerful product delivering traffic and value from day 1
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 3 WE HAVE BUILT A POWERFUL PRODUCT DELIVERING TRAFFIC AND VALUE FROM DAY 1… Merchants, integrators Retailers & Marketplace & partners Operators Designed to cope with large volumes Octopia Core Platform >100m products and >14k merchants(1) Merchants Operators 25
Slide 97: Advanced features delivering success to every client
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 3 …WITH ADVANCED FEATURES DELIVERING SUCCESS TO EVERY CLIENT Key features Why these features are key to succeed? Seamless merchants 1 Data Science power 2 Real-time monitoring 3 experience Example of financial Product creation and quality Monitoring by the website
Slide 98: Product offering addresses different market segments
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 4 OUR PRODUCT OFFERING ADDRESSES DIFFERENT MARKET SEGMENTS… Merchants ecosystem Retailers and e-commerce players ecosystem (B2B) 1 2 3 4 Merchants Small / medium operators Existing marketplaces Key accounts Retailers and e-com. players Marketplace merchants R
Slide 99: Tailored commercial strategies to deliver our ambition
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 4 …WITH TAILORED COMMERCIAL STRATEGIES TO DELIVER OUR AMBITION… Merchants ecosystem Retailers and e-commerce players ecosystem (B2B) 1 2 3 4 Merchants Small / medium operators Existing marketplaces Key accounts Deploy an industrial Leverage unique & existing co
Slide 100: Planned expansion across Europe and beyond
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 4 …AND PLANNED EXPANSION ACROSS EUROPE AND BEYOND TARGET GMV 2025 Octopia target share of e-commerce market in 2025 GMV breakdown by client type Fulfilment as a Service 10% Small-medium websites in Europe 35% €1,100bn Market in 2025(1) Europe: 0.5 – 1% Key accounts
Slide 101: A clear path of profitable growth ahead
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 5 A CLEAR PATH OF PROFITABLE GROWTH AHEAD GMV Dynamic start to external fulfilment solution: 600k parcels and 900 In € million 78 vendors in 2020 +67% CAGR Full marketplace solution: first major A very 45 Connected to +86% Delivering EMEA client signed beginnin
Slide 102: Our vision: first marketplace ecosystem leader
1. 2. 3. 4. 5. OCTOPIA 6. 7. 8. 9. 5 OUR VISION: DEVELOPING AN ALTERNATIVE BUSINESS MODEL TO BECOME THE FIRST MARKETPLACE ECOSYSTEM LEADER Next marketplace ecosystem leader with complementary e-commerce platform and B2B Global e- offer commerce giant pushing its brand internationally Strong local pl
Slide 103: Technology
6 TECHNOLOGY Christophe Samson CTO
Slide 104: We are platform makers
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. WE ARE PLATFORM MAKERS At scale Deeply agile One Goal 4 key Provide the necessary principles speed to be relevant in an ever-changing market Highly processed and Open and connected automated Source: Company information 104
Slide 105: Leading technology platform built to support the Cnova pillars
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. LEADING TECHNOLOGY PLATFORM BUILT TO SUPPORT AND ACCELERATE THE CNOVA PILLARS… 2.5m(1) 10.3m 100m 2m New products Visits / day Clients Products / week >1bn 5PB >250m Queries / Business Offers year data updated / day ADTech. ~5k 250k 700m Users Daily clicks Order
Slide 106: Requiring frictionless solutions across the value chain
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. …REQUIRING FRICTIONLESS SOLUTIONS ACROSS THE VALUE CHAIN A vast playground designed to increase value proposition Marketplace Cdiscount.com Web front Search/SEO Catalogue Order CRM Pricing Sellers Merchants Channels Final customers Octopia partners websites 500+
Slide 107: We build the differentiation and outsource the undifferentiated
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. WE “BUILD THE DIFFERENTIATION” AND WE “OUTSOURCE THE UNDIFFERENTIATED” Focusing on tailor-made solutions 90% of our teams are hands on We design what makes us unique… … and do not reinvent the wheel 500 100 Developers Tech leads We build strategic assets where
Slide 108: We selected the best tech, open source
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. WE SELECTED THE BEST TECH, OPEN SOURCE, SUPPORTED BY A LARGE COMMUNITY The right stack, up to date Web Front ReactJS (Facebook technology): high-quality front- User interface end user experience API .Net (Microsoft) and Java (Oracle): strong languages Inform
Slide 109: We are a top performer following Google's own criteria
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. WE ARE A TOP PERFORMER FOLLOWING GOOGLE’S OWN CRITERIA Software Delivery Performance User Experience Google WebVitals: “Accelerate” Google DORA FAST (highest rank) Mobile FAST Desktop FAST (in June) On demand: multiple Deployment frequency deploys per day ever
Slide 110: Our architecture is designed to cope with fast growing demand
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. OUR ARCHITECTURE IS DESIGNED TO COPE WITH FAST GROWING DEMAND Our capabilities have already been proven Used by 100m Designed for a billion thanks to MongoDB products 14k 10.3m Merchants(1) B2C clients 3k Designed for a 10k/s thanks to our kafka pub/sub stre
Slide 111: We have built a truly secure platform
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. WE HAVE BUILT A TRULY SECURE PLATFORM Our digital platforms are combat proven ■ Active multi layer strategy defense with world top security app (F5, Imperva, Access to the Cisco, Baleen): >120k aggressive requests blocked/day platform is strongly ■ Customer data
Slide 112: Our goal: Elite
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. OUR GOAL: ELITE 100% Elite “Accelerate” with Having the greatest User 100% micro services and a Experience and beyond Internalize 80% of leading time for change technical performance, our tech team (less than 1 day for all being a top digital player assets) on U
Slide 113: Technology key take-aways
1. 2. 3. 4. 5. 6. TECHNOLOGY 7. 8. 9. TECHNOLOGY KEY TAKE-AWAYS Mature technology platform already operating at scale Unique architecture with high barriers to entry protecting our ecosystem Agile platform enabling in-house innovations Focus on roll-out of our existing tech capabilities with clear p
Slide 114: Logistics
7 LOGISTICS Pierre-Yves Escarpit James Rebours Deputy CEO, C-Logistics Dev. CEO of Director and C-Logistics Innov. Director
Slide 115: Agenda
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. AGENDA 1 Supporting Cnova growth 2 Developing a 3rd party business 3 Keeping technological advantage 115
Slide 116: C-Logistics, an e-commerce supply chain leader to support growth of Cnova
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. C-LOGISTICS, AN E-COMMERCE SUPPLY CHAIN LEADER TO SUPPORT THE GROWTH Supporting Cnova growth OF CNOVA 1 533k sqm 200k 14 warehouses SKUs stored ~€400m x10 Revenues in 2020 Parcels shipped E-commerce supply chain leader in peak season 2,700+ 23m Marketplace mercha
Slide 117: C-Logistics key differentiating factors
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Supporting Cnova C-LOGISTICS KEY DIFFERENTIATING FACTORS growth 1 Net zero carbon emissions Innovative warehouses Top level delivery ambition Ability to handle and manage all 15 delivery options Shipment of parcels without empty product sizes Home deliver
Slide 118: Unrivalled logistics capabilities in France
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Supporting Cnova UNRIVALLED LOGISTICS CAPABILITIES IN FRANCE growth 1 533k sqm in France split between 14 warehouses Small products (<15kg) / Medium products (15-30kg) ➔ Key to develop high volume on non-technical goods Large / Bulky products (>30kg) Small produc
Slide 119: Logistics processes based on cutting-edge technologies
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Supporting Cnova LOGISTICS PROCESSES BASED ON CUTTING-EDGE TECHNOLOGIES growth 1 Automated robots for storage and picking Articulated arm for pick-and-pack 3D Packing machines #1 worldwide user, co-developed Robotics co-developed for packing #1 Europe user
Slide 120: Sophisticated stock management
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Supporting Cnova SOPHISTICATED STOCK MANAGEMENT growth 1 Organization Best of breed IT strategy Stock management split between: Use of Relex solutions since 2017 Sales and purchasing teams in charge of SAP as execution tool business strategy Replenishme
Slide 121: State-of-the-art delivery for small and medium products
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Supporting Cnova A STATE-OF-THE-ART DELIVERY FOR SMALL & MEDIUM PRODUCTS growth 1 Fast delivery Flexible delivery Top level quality France At-home delivery At-home delivery Interactive Sameday: D (in 8 main cities via High- Speed Trains) 7 days a week Express
Slide 122: Unique delivery offer for large/bulky products
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. A UNIQUE DELIVERY OFFER (VIA C CHEZ VOUS SUBSIDIARY) FOR LARGE/BULKY Supporting Cnova growth PRODUCTS 1 Fast delivery Flexible delivery Top level quality 4.8/5 2.6m 2.6m of parcels delivered / year 3 types of home delivery services Online booking on 2h-slots or +
Slide 123: Working towards our net zero carbon ambition
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Supporting Cnova WORKING TOWARDS OUR NET ZERO CARBON AMBITION growth 1 …2016 2017 2018 Reduction of the parcels’ volume High-Speed Train Paris & Bordeaux Electric flows (-30% in consumables & parcel volumes) (same-day France delivery) (100% for bulky products del
Slide 124: We bring to our merchants and customers the best of logistics
1. 2. B2C BUSINESS 3. 4. 5. 6. 7. 8. 9. Supporting Cnova WE BRING TO OUR MERCHANTS AND CUSTOMERS THE BEST OF LOGISTICS growth 1 An end-to-end logistics solution already used by 2,700 merchants at the core of marketplace growth Merchants We store the Merchants We prepare We manage # fulfilled parcels
Slide 125: Investments to support growth of Cdiscount and fulfilment
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. INVESTMENTS TO SUPPORT GROWTH OF CDISCOUNT AND FULFILMENT FOR Supporting Cnova growth MARKETPLACE MERCHANTS 1 Growth of operated parcels Existing warehouses equipment Progressive opening of new warehouse (In m) 2022 – 2025 2022 – 2025 c.50 23 On existing wareho
Slide 126: Agenda
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. AGENDA 1 Supporting Cdiscount growth 2 Developing a 3rd party business 3 Keeping technological advantage 126
Slide 127: Our value proposition: all e-commerce logistics and transport tools
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. OUR VALUE PROPOSITION: CONCENTRATION OF ALL E-COMMERCE LOGISTICS AND Developing a 3rd party business TRANSPORT TOOLS 2 Logistics operations Delivery Suppliers At-home Vendors Pickup DCs points e-3PL e-3PL by Full e-commerce 3PL (third party logistics) for all pro
Slide 128: C-Logistics: become a leading integrated supply chain service provider
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. C-LOGISTICS: BECOME A LEADING INTEGRATED E-COMMERCE SUPPLY CHAIN Developing a 3rd party business MANAGEMENT SERVICE PROVIDER 2 Ambitions over the 2021 – 2025 period Achievements and roll-out plan 2 new customers targeted in 2021 E-commerce 3PL market size(1)
Slide 129: C Chez Vous: undisputed French leader in heavy parcel delivery
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. C CHEZ VOUS: BECOME THE UNDISPUTED FRENCH LEADER IN THE DELIVERY OF Developing a 3rd party business HEAVY PARCELS 2 Ambitions over the 2021 – 2025 period Achievements and roll-out plan Bulky products delivery market size(1) 8clients signed to date and 6 princip
Slide 130: Octopia FaaS: leading fulfilment solution provider in Europe
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Developing a 3rd party OCTOPIA FAAS: BECOME A LEADING FULFILMENT SOLUTION PROVIDER IN EUROPE business 2 Ambitions over the 2021-2025 period Roll-out strategy Rely on well-established local players (PoC) Become a leading fulfilment 1 for small surfaces (<18k sqm)
Slide 131: Agenda
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. AGENDA 1 Supporting Cdiscount growth 2 Developing a 3rd party business 3 Keeping technological advantage 131
Slide 132: Logtech: leading the way to supply chain 4.0
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Keeping technological LOGTECH: LEADING THE WAY TO SUPPLY CHAIN 4.0 advantage 3 Innovative R&D solutions with multiple applications Agile organization to support R&D ➔ Improve the customer experience Reduce preparation time PoC R&D Improve the quality of preparati
Slide 133: Accelerator dedicated to supply chain
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. Keeping technological ACCELERATOR DEDICATED TO SUPPLY CHAIN 4 TO 5 START-UPS PER YEAR advantage 3 Rich environment provided to start-ups… …benefitting from C-Logistics’ operations and reputation Developing disruptive technologies to preserve the company competi
Slide 134: Innovation strategy and CSR approach recognised by awards
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. INNOVATION STRATEGY AND CSR APPROACH RECOGNISED Keeping technological advantage BY THE SUPPLY AND E-COMMERCE WORLD (17 AWARDS IN 4 YEARS) 3 David Avec Goliath award (2018) for the best collaboration between a startup (Exotec) and a big company in France Unequ
Slide 135: C-Logistics key take-aways
1. 2. 3. 4. 5. 6. 7. LOGISTICS 8. 9. C-LOGISTICS KEY TAKE-AWAYS We have a critical scale to operate at best cost and quality We have a differentiating expertise in bulky products We are at the leading edge of automation making us relevant for small and medium products We have a true and recognized i
Slide 136: ESG
8 ESG Marie Even Deputy CEO, General Secretary
Slide 137: Corporate governance structures
1. 2. 3. 4. 5. 6. 7. 8. ESG 9. CORPORATE GOVERNANCE STRUCTURES Experienced & effective board Free float 1.0% Current shareholding 34.2% structure 64.8% 9 members (1 exec, 8 non-execs) 2 independent directors 1 female director Non- Executive Chairman Corporate governance structures Cnova NV is a Du
Slide 138: Robust process for arm's length related party transactions
1. 2. 3. 4. 5. 6. 7. 8. ESG 9. ROBUST PROCESS FOR ARM’S LENGTH RELATED PARTY TRANSACTIONS Cnova established its RPT policy in 2014 for all transactions between Casino Group and its subsidiaries and Cnova NV and/or its subsidiaries Policy & The company’s policy is that all RPTs shall be entered i
Slide 139: ESG integrated across the business
1. 2. 3. 4. 5. 6. 7. 8. ESG 9. ESG INTEGRATED ACROSS THE BUSINESS Executive Deputy CEO, member of the Committee Executive Committee Head of Operations Data Protection Head of CSR Compliance & Head of HR Officer Quality Logistics Environment Compliance with Diversity IT Sapin 2 Public relations Commu
Slide 140: Strong sustainability program adding value across the group
1. 2. 3. 4. 5. 6. 7. 8. ESG 9. STRONG SUSTAINABILITY PROGRAM ADDING VALUE ACROSS THE GROUP Reducing the Encouraging Promoting a environmental Building trusting diversity and Making digital a Supporting local 1 more sustainable 2 impact of 3 relationships 4 equal 5 chance for all 6 economies consumpt
Slide 141: A comprehensive ESG approach and sector leading outcomes (1/2)
1. 2. 3. 4. 5. 6. 7. 8. ESG 9. A COMPREHENSIVE ESG APPROACH AND SECTOR LEADING OUTCOMES (1/2) Commitments Actions and achievements Business outcomes Scopes 1 & 2 emissions: 35%-reduction in 2021 achieved by procuring Promoting a more 100% of electricity from renewable sources 1 sustainable Targeti
Slide 142: A comprehensive ESG approach and sector leading outcomes (2/2)
1. 2. 3. 4. 5. 6. 7. 8. ESG 9. A COMPREHENSIVE ESG APPROACH AND SECTOR LEADING OUTCOMES (2/2) Commitments Actions and achievements Business outcomes Implementation of an all-encompassing action plan to manage GDPR Building trusting Achieving sector compliance: 1st and only e-commercant aligned wit
Slide 143: Financial Performance and Outlook
9 FINANCIAL PERFORMANCE AND OUTLOOK Maxime Dubarry Emmanuel Grenier CFO CEO
Slide 144: Agenda
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK AGENDA A INTRODUCTION AND METHODOLOGY B HISTORICAL PERFORMANCE C GUIDANCE 144
Slide 145: Introduction and roadmap to our financial performance
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK A INTRODUCTION AND ROADMAP TO OUR FINANCIAL PERFORMANCE Accounting principles & basis of preparation GMV E-commerce Platform Take Octopia rate (including Direct Sales, Marketplace, Digital (B2B) Marketing and other) • Fiscal year: Cnova fi
Slide 146: Strong topline growth empowered by optimized revenue mix
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK B STRONG TOPLINE GROWTH EMPOWERED BY OPTIMIZED REVENUE MIX 2018A-2020A GMV (€m) 2018A-2020A GMV bridge by business (€m) +7.4% 18A-20A CAGR CAGR +50 Strong performance 4,207 of the Marketplace 3,899 78 +67% 3,646 45 28 +511 3,854 4,129 +7
Slide 147: Disciplined approach has delivered strong gross profit progression
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK B DISCIPLINED APPROACH IN THE PRODUCT OFFERING HAS DELIVERED STRONG GROSS PROFIT PROGRESSION 2018A-2020A Gross margin bridge (€m) +18.6% CAGR Strong gross profit growth (+19% 18A-20A +85 CAGR) mainly driven by: +52 Product mix optimizati
Slide 148: Well calibrated cost structure to support future growth
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK B WELL CALIBRATED COST STRUCTURE TO SUPPORT FUTURE GROWTH 2018A-2020A Breakdown of operating expenses(1) by type (€m) 18A-20A +8.7% CAGR Significant marketing efforts (+18% CAGR CAGR) driven by the intensification of media and acquisitio
Slide 149: Gross profit gains and efficient cost structure driving EBITDA
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK B SIGNIFICANT GROSS PROFIT GAINS COMBINED WITH A HIGHLY EFFICIENT COST STRUCTURE DRIVING THE STRONG EBITDA PERFORMANCE 2018A-2020A EBITDA post IFRS 16(1) (€m) 2020A Bridge revenue – EBITDA (€m) 133 +66.2% CAGR 82 (1,751) 2,225 48 (341) 474
Slide 150: Strong fundamentals driving positive free cash flow
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK B STRONG FUNDAMENTALS DRIVING POSITIVE FREE CASH FLOW 2019A-2020A Free Cash Flow (€m) Bridge 2020A EBITDA post IFRS 16 to 2020A Free Cash Flow (€m) Notably driven by optimized inventories (22) 26 +64 (32) Mainly CB4X (71) expenses 133 Supp
Slide 151: Healthy financial position at year end
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK B HEALTHY FINANCIAL POSITION AT YEAR END, WITH A SIGNIFICANT SEASONALITY OF CASH DURING THE YEAR 2020A Indebtedness analysis (€m) 9 (16) 121 (130) 176 7 (14) Net financial debt (post- 361 376 IFRS 16) as of 224 201 December 2020 of €376m
Slide 152: Clear roadmap for future growth around 4 strategic pillars
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK C CLEAR ROADMAP FOR FUTURE GROWTH AROUND 4 STRATEGIC PILLARS Octopia providing the full range of B2B Increasing penetration of Digital solutions Strong means to bolster Marketing Well-designed go-to-market approach to Strong acceleration
Slide 153: Re-IPO primary proceeds to finance future growth
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK C RE-IPO PRIMARY PROCEEDS TO FINANCE FUTURE GROWTH Sources Uses Additional expansion Capex included in Finance future the plan growth Proceeds from re-IPO Working Capital swings Bolster balance sheet to face intra- year swings of cash RCF
Slide 154: Financial guidance
1. 2. 3. 4. 5. 6. 7. 8. 9. FINANCIAL PERFORMANCE AND OUTLOOK C FINANCIAL GUIDANCE GMV Revenue EBITDA Post IFRS 16 Capex o/w c.€1.7bn from Marketplace (3P) >€160m Short-term guidance Total c.€4.5bn Total c.€2.3bn Total €90-100m (FY2021 figures) <0 in 2021E and expected to turn positive from 2023E o/w
Slide 155: Conclusion
CONCLUSION
Slide 156: Our conviction
OUR CONVICTION Marketplaces are a fast-growing & profitable market We are a leading platform capitalizing on 2 decades of experience Capital injection would allow us to capture a larger share of this opportunity We see plenty of upside ahead (e.g. digital marketing, white label, cyber, financial ser
Slide 157: Glossary
GLOSSARY Environmental, Social and Corporate 1P First Party ESG Ops Operations Governance 3P Third Party FAAS Fulfilment as a Service PoC Proof Of Concept 3PL Third Party Logistics FTE Full-Time Equivalent RCF Revolving Credit Facility API Application Programming Interface G&A General & Administrati