Ceconomy Ag · XETR:CEC
Ceconomy — Q1 2022/23 Earnings Presentation
32 slides from Ceconomy's earnings presentation, Feb 14, 2023
Slide 1: Results Presentation Q1 2022/23
Results Presentation Q1 2022/23 14 February 2023
Slide 2: Disclaimer and Notes
Results Presentation Q1 2022/23 on 14 February 2023 2 Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation (including constitute financial advice or recommendations. business. Given the aforementioned uncertainties, (prospective) investors are all slides of thi
Slide 3: CECONOMY at a glance: Leadership position in CE retail and services
Results Presentation Q1 2022/23 on 14 February 2023 3 CECONOMY at a glance: Leadership position in CE retail and services 21.8 5.3 >1,000 East Others (SWE) Others Brown goods €bn sales €bn online stores Telecom sales Sales share Sales share by by category ~50k country New Media West/South DACH White
Slide 4: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 5: Welcome on board
Results Presentation Q1 2022/23 on 14 February 2023 5 Welcome on board Dr Kai-Ulrich Deissner Fabienne Caron Chief Financial Officer VP Investor Relations About About / CFO of CECONOMY AG and Media- / VP Investor Relations at CECONOMY AG and Saturn-Holding GmbH since 1 February Media-Saturn-Holding
Slide 6: Q1 2022/23 Encouraging start to the financial year
Results Presentation Q1 2022/23 on 14 February 2023 6 / Sales increased above pre-COVID levels Q1 2022/23 / EBIT in line with expectations impacted by higher personnel, energy and location costs Encouraging start / Inflationary cost increases partly offset by dedicated cost management to the financi
Slide 7: Focus on execution and operational excellence kept us on course
Results Presentation Q1 2022/23 on 14 February 2023 7 Focus on execution and operational excellence kept us on course Sales above pre-COVID levels Earnings development Liquidity strengthened / Sales increased to €7.1 bn (+4.9%1) with in line with expectations / Sound net working capital performance
Slide 8: CE market proves robust in Q1; macroeconomic indicators show slightly better sentiment
Results Presentation Q1 2022/23 on 14 February 2023 8 CE market proves robust in Q1; macroeconomic indicators show slightly better sentiment; however, market environment remains challenging Total market & market shares in Q1 Macroeconomic indicators / Total1 CE market growing by c. +1.2% / European
Slide 9: Dedicated efficiency programs to counterbalance inflationary pressure and strengthen profitability
Results Presentation Q1 2022/23 on 14 February 2023 9 Dedicated efficiency programs to counterbalance inflationary pressure and strengthen profitability Q1 2022/23: / Clear focus on strict cost management to counter inflationary trends / OPEX ratio broadly stable Cost discipline / Efficiency measure
Slide 10: 4 strategic pillars
Results Presentation Q1 2022/23 on 14 February 2023 10 Creating Experience Electronics Our strategy on a page 4 strategic pillars / Employee Experience: "Front-line first“ delivering a great customer experience. Direct Mobile / Shopping Experience: Investing and growing online EMPLOYEE SHOPPING with
Slide 11: Gaining momentum by executing our strategy and growing adjacent service businesses
Results Presentation Q1 2022/23 on 14 February 2023 11 Gaining momentum by executing our strategy and growing adjacent service businesses Customer experience Online business Stores All time high #2 CE online player Post-COVID recovery NPS at +53 in Europe1, #3 in growing B&M sales up 6 points yoy. G
Slide 12: We enable a more sustainable lifestyle
Results Presentation Q1 2022/23 on 14 February 2023 12 We enable a more sustainable lifestyle Highlights Q1 2022/23 Highlights FY 2021/22 Achievements Customer impact CO2 reduction Recognition for outstanding Trade-in CO2 emissions Energy consumption Sustainable products generated sustainability by
Slide 13: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 14: Continued sales momentum and seasonally normalized earnings keep us on track
Results Presentation Q1 2022/23 on 14 February 2023 14 Continued sales momentum and seasonally normalized earnings keep us on track to deliver our more likely guidance scenario 1 Q1 development over the years / Sales performance ahead of pre-COVID level = COVID restrictions (+5.0%1 vs 2018/19) +5.0%
Slide 15: Positive sales development in almost all segments
Results Presentation Q1 2022/23 on 14 February 2023 15 Positive sales development in almost all segments Segments Q1 2022/23 Western/ DACH Eastern €m DACH Southern Others4 CECONOMY / Sales increase in AT, HU, DE stable, CH declined Europe Europe / EBIT decline mainly due to positive one offs in prio
Slide 16: Online and Services & Solutions on elevated level vs pre-COVID times
Results Presentation Q1 2022/23 on 14 February 2023 16 Online and Services & Solutions on elevated level vs pre-COVID times Q1 development over the years in (m€) / Online normalized due to B&M recovery after = COVID restrictions COVID-related restrictions in PY +79.9% -4.7% / Online sales supported
Slide 17: Moderate gross margin decline; efficiency measures partially mitigate cost inflation
Results Presentation Q1 2022/23 on 14 February 2023 17 Moderate gross margin decline; efficiency measures partially mitigate cost inflation Q1 development over the years (as % of sales) / Gross margin affected mainly by lower = COVID restrictions product margin in an intensified competitive -0.2%p.
Slide 18: Services & Solutions and channel shift ease goods margin pressure
Results Presentation Q1 2022/23 on 14 February 2023 18 Services & Solutions and channel shift ease goods margin pressure Q1 / Slight gross profit increase vs PY due to sales Gross development margin1 ↘ -0.2%p. (as % of / Lower online share compared to PY translates into sales) positive gross margin
Slide 19: Improvement in net result, EPS diluted by the increased number of shares
Results Presentation Q1 2022/23 on 14 February 2023 19 Improvement in net result, EPS diluted by the increased number of shares EBITDA to EPS Q1 Reported EBIT €m 2021/22 2022/23 / Reported EBIT decline in line with adj. EBIT EBITDA 445 386 development; only minor restructuring items in both periods
Slide 20: Strong FCF improvement– substantial positive yoy change in NWC achieved
Results Presentation Q1 2022/23 on 14 February 2023 20 Strong FCF improvement– substantial positive yoy change in NWC achieved Free cash flow (FCF) in Q1 2022/23 (yoy change, €m) Δ NWC -60 +457 +12 +316 -25 +700 +5 +705 / Stronger yoy increase; reduction in inventories and trade receivables more tha
Slide 21: Solid liquidity strengthened by NWC optimization
Results Presentation Q1 2022/23 on 14 February 2023 21 Solid liquidity strengthened by NWC optimization Inventories (€m) Cash and Cash Equivalents (€m) / Focus on stock management with clear targets on country level showed effect: -257 +351 – Total stock reduced 3,611 2,634 – Age structure improved
Slide 22: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 23: Q1 2022/23 supports our guidance for FY 2022/23
Results Presentation Q1 2022/23 on 14 February 2023 23 Q1 2022/23 supports our guidance for FY 2022/23 – Positive scenario 1 still more likely from today's perspective FY 2022/23 FY 2022/23 FY 2021/22 Guidance scenario 1 Guidance scenario 2 Sales Slight increase1 Clear decrease1 €21,768 m Adj. EBIT2
Slide 24: Agreement signed for sustainable profitable growth in Sweden
Results Presentation Q1 2022/23 on 14 February 2023 24 Agreement signed for sustainable profitable growth in Sweden / Power Sweden have signed a deal with CECONOMY AG to acquire 100% shares of MediaMarkt Sweden; CECONOMY receives 20% minority stake in Power Sweden / Integration of the MediaMarkt Swe
Slide 25: Q1 results in summary
Results Presentation Q1 2022/23 on 14 February 2023 25 Q1 results in summary 01 02 Our start into the new The CE market is robust and financial year was macroeconomic indicators encouraging. slightly more positive. 03 04 We are in control. Our We focus on customer measures to master the experience.
Slide 26: Questions & Answers
Results Presentation Q1 2022/23 on 14 February 2023 26 Questions & Answers Dr Karsten Wildberger Dr Kai-Ulrich Deissner
Slide 27: Financial calendar
Results Presentation Q1 2022/23 on 14 February 2023 27 Financial calendar Annual Q2/H1 2022/23 Q3/9M 2022/23 Q4/12M 2022/23 General Meeting results results Trading Statement 22 February 2023 15 May 2023 10 August 2023 26 October 2023 Q4/12M 2022/23 results 18 December 2023
Slide 28: Contact
Results Presentation Q1 2022/23 on 14 February 2023 28 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/
Slide 29: Appendix
Appendix
Slide 30: Current market environment and operational dynamics differ significantly from previous year's period
Results Presentation Q1 2022/23 on 14 February 2023 30 Current market environment and operational dynamics differ significantly from previous year's period PY: Q1 2021/22 CY: Q1 2022/23 External / COVID restrictions / No more COVID restrictions headwinds / Supply chain restrictions / Improved produc
Slide 31: Net Working Capital
Results Presentation Q1 2022/23 on 14 February 2023 31 Net Working Capital Q1 2022/23 €m 30/09/2021 31/12/2021 Change 30/09/2022 31/12/2022 Change Inventories 3,111 3,611 500 3,176 3,354 177 Trade receivables and similar claims 361 415 53 440 475 35 Receivables due from suppliers 1,142 1,701 559 1,2
Slide 32: CECONOMY
O CECONOMY