Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Fnac Darty Sa Ord — FY2023 Earnings Presentation
41 slides from Fnac Darty Sa's earnings presentation, Feb 22, 2024
Slide 1: Fnac Darty
FNAC DARTY
Slide 2: 2023 Full Year Results
2023 FULL YEAR RESULTS J “4 _/ FNAC DARTY
Slide 3: Agenda
AGENDA 6:30 pm 2023 ACTIVITY AND STRATEGIC EXECUTION REVIEW Enrique Martinez, Chief Executive Officer 6:45 pm FINANCIAL RESULTS Jean-Brieuc Le Tinier, Chief Financial Officer 7:00 pm CONCLUSION AND Q&A SESSION 3
Slide 4: Activity and Strategic Execution Review
ACTIVITY AND STRATEGIC EXECUTION REVIEW Enrique Martinez Chief Executive Officer
Slide 5: Fnac Darty Official Supporter
FNAC DARTY OFFICIAL SUPPORTER 5
Slide 6: Market Context
MARKET CONTEXT DOMESTIC APPLIANCES Change in VALUE of the French market Change in VOLUME of the French market (base of 100 in 2019) (base of 100 in 2019) CONSUMER ELECTRONICS EDITORIAL PRODUCTS 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 A retail sector undergoing a profound transformation, wi
Slide 7: Resilience Despite a Very Challenging Environment
RESILIENCE DESPITE A VERY CHALLENGING ENVIRONMENT CHALLENGES SUCCESSES Lower market volumes Flat revenue Gross margin maintained High inflation and interest Strong cost management Solid FCF generation rates Consumer confidence at a Initiatives to drive future Portugal acquisition 10-year low(1) grow
Slide 8: Our Strategy Built to Strengthen Our Positioning and Capture Growth
OUR STRATEGY BUILT TO STRENGTHEN OUR POSITIONING AND CAPTURE GROWTH Build a digitized omnichannel retail • Best-in-class online capacities Lead durable behaviors • A profitable and digitized store network • A more sustainable offer, combined • A high-value offer with customers’ orientation towards s
Slide 9: Unequalled Omnichannel Capabilities with Digital Platform and Store Network
UNEQUALLED OMNICHANNEL CAPABILITIES WITH DIGITAL PLATFORM AND STORE NETWORK 1,010 1 14 websites stores 84 in Belgium / Luxemburg own global 838 in France / Switzerland 1 Marketplace platform 88 in Spain / Portugal >27M unique visitors per month in France (#2)2 78% 22% of which 50% using Click&Collec
Slide 10: Product Diversification with Focus on Most Attractive Segments
PRODUCT DIVERSIFICATION WITH FOCUS ON MOST ATTRACTIVE SEGMENTS A wide range of products and services Unrivalled leadership on our markets Consumer electronics Domestic appliances #1 #1 47% * 20%* Bookstore Record store Editorial products Other products and Services #1 #1 18% * 15% * Repairer Player
Slide 11: Subscription Service Generating More Recurring, Sticky Revenues
SUBSCRIPTION SERVICE GENERATING MORE RECURRING, STICKY REVENUES x1.5 repeat shops > 1.1 million subscribers compared to a standard in 2023 Darty customer Essentiel €11.99/month 2 million subscribers in 2025 Evolution €16.99/month x1.7 average cart size compared to a standard Subscription rolled out
Slide 12: Pioneering and Leading Educated Choice
PIONEERING AND LEADING EDUCATED CHOICE CULTURE TECHNOLOGY DURABLE BEHAVIORS LaboFnac: A unique concept since 50 years After-Sales Service Barometer (96 product families reviewed) • 939 tests done in 2023 on 531 products, using objective methods “Le choix durable” to guide customers towards more reli
Slide 13: Giving Products a Second Life
GIVING PRODUCTS A SECOND LIFE GMV 2023 ~€120M (+30% vs 2022) Customer returns Fnac Darty Quality 2 years warranty Refurbished products Damaged products 3 packaging DEDICATED Eligible for Services Up to 50% cheaper REFURBISHING Display models UNITS Non-functional products from after-sales services Bu
Slide 14: Strategic Initiatives to Boost the Marketplace
STRATEGIC INITIATIVES TO BOOST THE MARKETPLACE + PLATFORM BACKSOURCED AND BACK OFFICE MERGER 2024 2025 > 3,600 vendors FULFILLMENT FULL STACK SAAS SOLUTIONS MARKETPLACE From J+5 to J+1 delivery ≈ 35M C&C, installation, After sales / repair active offers OVER THE NEXT 5 YEARS: > €200M sales DOUBLE-DI
Slide 15: Retail Media: High Value-Added Services to Drive Growth
RETAIL MEDIA: HIGH VALUE-ADDED SERVICES TO DRIVE GROWTH DOOH Revenue Campaigns ~€90M > 1,600 DIGITAL In 2023 since 2021 Revenue growth Operating Margin +40% +40% 2019-2023 2019-2023 INSTORE LEVERAGING THE GROUP’S OMNICHANNEL LEADERSHIP 15
Slide 16: Accelerate Our Digital Transformation
ACCELERATE OUR DIGITAL TRANSFORMATION DATA-CENTRIC CORNERSTONE PARTNERSHIP • Best-in-class search: Google Cloud Retail Search on our websites + • Enhanced capabilities for AI and Datascience: AI, Machine Learning, LLM, tools, analytics LAUNCH OF 1st GENERATIVE AI TESTS AND EXPERIENCE ACROSS DEPARTME
Slide 17: Sustainable Value Creation
SUSTAINABLE VALUE CREATION 2023 KEY ACHIEVEMENTS -26% Reduction in CO2 emissions from energy and transport -17% Reduction in electricity consumption 2.5M Products repaired 118 Sustainability Score 33% Part of women in the Leadership Group1 A- Amongst 22% of companies that reached Leadership level 17
Slide 18: Commitment to Customer Satisfaction and People
FNAC DARTY IS STRONGLY COMMITED TO IMPROVE CUSTOMER TO DEVELOP ITS MOST SATISFACTION VALUABLE ASSET: PEOPLE NPS +2 pts vs 2022 94% of employees trained Rewards for sustainable behaviors (2nd life, C&C, etc.), partner pass 27 apprentices class launched New Brand platform and TV 236 technicians traine
Slide 19: Financial Results
FINANCIAL RESULTS Jean-Brieuc Le Tinier Chief Financial Officer
Slide 20: Resilient Revenue Performance Sustained by Acceleration in H2 2023
RESILIENT REVENUE PERFORMANCE SUSTAINED BY AN ACCELERATION IN H2 2023 Resilient revenue: €7,875 million in 2023 % LFL1 €m 2022 2023 change • Down by -0.9% on a reported basis and -1.1% on a LFL basis1 compared to 2022 mainly due to lower sales volumes Revenue 7,949 7,875 (1.1)% • Strong momentum in
Slide 21: Tight Monitoring of Cost Base Despite Inflation
TIGHT MONITORING OF COST BASE DESPITE INFLATION Stable gross margin excl. dilutive impact of the Cost inflation mitigated by proactive measures franchises thanks to our positioning and services (especially performance plans) growth • Cost rises by +1.4% vs French inflation at +4.0%1 • Fnac Darty man
Slide 22: Group Financial Results
GROUP FINANCIAL RESULTS €m 2022 2023 change Current Operating Income down €60m: lower sales, OPEX increase (energy cost and inflation Current operating income 231 171 (60) not fully compensated by performance plans) Non-current operating income and (27) (131) expenses Operating income includes a €10
Slide 23: Resilient Cash Flow Generation
RESILIENT CASH FLOW GENERATION €m 2022 2023 Free Cash Flow from operations3 reached €180m, fully aligned with our guidance of €500m EBITDA 580 533 cumulative for the period 2021-2024 IFRS 16 impact (254) (264) Free cash flow (in €m) Non-current cash items and EBITDA non- cash items (9) (38) 173 192
Slide 24: A Well-Balanced Capital Structure
A WELL-BALANCED CAPITAL STRUCTURE €m 2022 2023 Way back to a net cash position to €198m excl. Shareholders equity 1,523 1,538 IFRS 16 Net cash (5) 198 Successful maturities extensions enabling a long- Gross financial debt 937 923 dated debt maturity profile: Cash and cash equivalents 932 1,121 • RCF
Slide 25: Conclusion & Outlook
CONCLUSION & OUTLOOK Enrique Martinez Chief Executive Officer
Slide 26: 2024 A Celebrating Year
2024 A CELEBRATING YEAR 70 years modernity 50 years Paris 2024 Membership, Culture, Tech contrat de confiance Official supporter Price, Choice, Service, Sustainability 50 years of Books 26
Slide 27: Outlook
OUTLOOK Inflation and saving rate level decrease should support growth in 2024 onwards In the short term, the timing of the recovery in household consumption remains very uncertain Fnac Darty will: • Outperform its markets thanks to its operational agility and its omnichannel model • Maintain its gr
Slide 28: Q&A
Q&A
Slide 29: Appendices
APPENDICES FNAC DARTY
Slide 30: Definitions (1/2)
DEFINITIONS (1/2) Definition of like-for-like (LFL) 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 i
Slide 31: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 restatement Without application of IFRS 16 Current EBITDA Current EBITDA excluding IFRS 16 Current operating income before depreciation, Rents within the scope amortization and provisions on fixed operational of IFRS 16 Current EBITDA including r
Slide 32: Leading European Omnichannel Retailer with Diverse Range of Products and Services
LEADING EUROPEAN OMNICHANNEL RETAILER WITH A DIVERSE AND BALANCED RANGE OF PRODUCTS AND SERVICES 2023 revenue breakdown by category €7.9bn Group revenue in 2023 – ~25,000 employees 15% Consumer electronics Top European omnichannel retailer Editorial products • 70 million+ checkout transactions 20% 4
Slide 33: Everyday Main CSR KPIs
EVERYDAY MAIN CSR KPIS KPIs 2022 2023 2025 targets Durability score1 115 118 135 Number of products repaired 2.3m 2.5m 2.5m Proportion of Women in the Top 200 managers 30% 33% 35% Share of women in the Executive Committee 42% 42% >40% 1 Average of a reliability score and a repairability score, based
Slide 34: ESG Ratings
ESG RATINGS Agencies 2020 2021 2022 2023 48/100 54/100 61/100 n/a 11.5 11.4 12.0 12.8 Low ESG risks AA AA AA AA C A- A- A- 34
Slide 35: Cash Flow Statements
CASH FLOW STATEMENTS €m 2022 2023 Net Cash as of January 1 excl. IFRS 16 247 (5) Operating free cash-flow (excl. IFRS 16) (30) 180 Dividends paid (55) (21) Shareholders’ equity component – OCEANE bonds 0 0 Interest paid net of interest and dividends received (28) (26) Acquisition/disposal of subsidi
Slide 36: Simplified P&L
SIMPLIFIED P&L €m 2022 2023 Revenue 7,949 7,875 Current operating income 231 171 Non-current operating income and expenses (27) (131) • Exceptional elements1 (4) (106) • Other non-current elements (23) (25) Operating income 204 40 Financial expense (45) (79) Tax (54) (31) Consolidated net income fro
Slide 37: Simplified P&L (H1 & H2)
SIMPLIFIED P&L (H1 & H2) €m H1 2022 H2 2022 H1 2023 H2 2023 Revenue 3,428 4,521 3,344 4,531 Current operating income 19 212 (35) 206 Non-current operating income and expenses (14) (13) (100) (30) Operating income 5 199 (136) 176 Financial expense (18) (27) (44) (35) Tax (3) (51) 19 (49) Consolidated
Slide 38: Balance Sheet
BALANCE SHEET Assets in €m 31 Dec. 2022 31 Dec. 2023 Equity and Liabilities in €m 31 Dec. 2022 31 Dec. 2023 Goodwill 1,654 1,680 Share capital 27 28 Reserves related to equity 971 987 Intangible assets 562 566 Conversion reserves (4) (6) Tangible assets 570 544 Other reserves 518 513 Rights of use r
Slide 39: Store Network
STORE NETWORK December 31, 2022 December 31, 2023 Owned Franchised Total Owned Franchised Total France and Switzerland1 412 414 826 407 431 838 Iberian Peninsula 69 6 75 82 6 88 Belgium and Luxembourg 86 0 86 84 0 84 Group 567 420 987 573 437 1,010 1 Including 16 stores abroad (1 in Saudi Arabia, 3
Slide 40: 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
Slide 41: Fnac Darty
FNAC DARTY