Cnova NV — FY2022 Earnings Presentation
28 slides from Cnova NV's earnings presentation, February 2023
Slide 1: Activity & Financial Performance
Activity & Financial Performance February 224, 2022
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. Such forward-looking statements may generally be identified by, but not limited to, words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,”
Slide 3: Business Highlights & Key Figures
BUSINESS HIGHLIGHTS & KEY FIGURES discount
Slide 4: Highlights & Key Figures
lights & Key Figures ent performance in a challenging & uncert In a challenging & uncertain market... Macroeconomic trends Ecommerce trends High inflation Competition heavily impacted High uncertainty Receding French market ...continuous development of the marketplace, advertising services and B2B O
Slide 5: Resilient Ecommerce Platform
RESILIENT ECOMMERCE PLATFORM discount
Slide 6: Marketplace long-term trends still dynamic
Marketplace Marketplace long-term trends still dynamic Marketplace GMV growing +7% annually Marketplace share increasing +3pts per year inێm in % of total 1,117 995 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 2 Covid effect Cnova 6
Slide 7: Marketplace revenues growing faster than marketplace GMV
Marketplace Marketplace revenues growing 4pts faster than marketplace GMV over the last 5 years Marketplace revenues! growing +11% annually Key drivers are accelerating Effective sellers 31% sourcing generating Gy generated by growth and revenues “new’ sellers! enhancing pricing ge + . Growth for to
Slide 8: Advertising services revenue growth
Solution (CARS) Advertising services revenue growth A success for Cdiscount and for our merchants 1.1%) 71.2%) 7596) 7.4%) 31%) % Q Advertising services growing :+5% vs FY21, of fo driven by sponsored products In€m Caen Caen 1 om | CARS [ crowing ){ cmeshare CAGR Cdiscount Ads Retail Solution +29% y
Slide 9: Direct sales benefiting from top brands performance
Direct Sales Direct sales benefiting from top brands performance and enhanced cash profile Reinforced relationship with Top 20 brands Improved 1P assortment and cash profile * +8pts GMV IP trend vs. other 1P (+3pts share) * +6pts contribution margin vs. other 1P = S Shortened 1P assortment * Super B
Slide 10: Strong rebound of Travel activity post covid slowdown
Services Strong rebound of Travel activity post covid slowdown Iin€m 103 90 Flights growing +39% vs. FY21 62 7 > Significant growth after two years of COVID impact > All travel activities benefited from this growth > Main destinations : Tunisia, Egypt , Turkey , Spain and France Holidays Packages gr
Slide 11: Improve the customer-centric approach with AI-powered algorithms
er Experience Improve the customer-centric approach with Al-powered algorithms Search engine powered by Al Click rate improvement / Pricing positioning powered by Al More SKUs crawled to optimize price positioning Cnova 1
Slide 12: B2B Activities
B2B ACTIVITIES discount
Slide 13: C-Logistics e-commerce supply chain solution gaining traction
B2B Activities C-Logistics e-commerce supply chain solution gaining traction C-Log istics Full service of supply e-commerce operations QO 4clients at 2022 year-end (+3 new clients in 2022) LES ot” RAFFINEURS EJ eoarcrivers GD Ist shipment 2021 2022 2023 2024 Q Key success drivers High B2C Competitiv
Slide 14: Octopia accelerates its commercial development
B2B Act Octopia accelerates its commercial development les Octopia B2B revenues accelerating to €19m (+66% vs N-1) 26 clients at 2022 year-end (+14 in 2022): 10 marketplaces (+4) and 16 merchants (+10) Kingfysher CDON = as § OOM international Ramsay clients EUROPAZON Key success drivers Internationa
Slide 15: ESG
ESG discount
Slide 16: A more sustainable e-commerce
ESG A more sustainable e-commerce to our BtoC and BtoB customers More sustainable 1P & 3P offer More sustainable logistics ae, = Q 100% of deliveries and returns contribute to ERIENERG? 88 Ejos INDICE DE REPARABILITE carbon-neutrality (strong reduction efforts and Q 13% of the total product sales (+
Slide 17: Recognized achievements
ESG Recognized achievements I commitment Environmental commitment So Q Reducing the environmental impact of logistics Q Women in Tech and gender equality 0} Q Promotion of diversity [|DIVeRsiTy | LEADERS NV — <¢FEEF = & DOR 7 /\ ‘o; Q Eco-conception of products Q Driving an more inclusive and sustai
Slide 18: Full-Year 2022 Financial Performance
FULL-YEAR 2022 FINANCIAL PERFORMANCE discount
Slide 19: 2022 Full-Year Financial Performance: GMV
2022 Full-Year Financial Performance -15% GMV decrease in a receding market, with a strong performance of services, B2C and Advertising €m, including VAT FY22 Reported Direct sales 1,340 -27% -32% Marketplace 1,518 1,421 -6% -2% B2C__B2C Services 278 212 -24% +43% +17% FY22 Advertising services 81 8
Slide 20: Sharp increase of Gross Margin
2022 Full-Year Financial Performance Sharp increase of Gross Margin mainly thanks to GMV mix improvement towards marketplace Gross margin Sharp increase in gross margin at 23.2% of net sales: As % of net sales +1.3pt vs. 21 and +5.4pts vs. 19 +5.4pts . . 1 discount discount - Fulfilment © Sdiscount
Slide 21: SG&A improved by -7.9%
2022 Full-Year Financial Performance SG&A improved by -7.9%, a 29.IM€ decrease supported by the Efficiency Plan SG&A (excl. D&A) (in €m) % of cmv -7.9% -€29m 8.8% 371 342 9.8% +1.0pt 11% 46 42 1.2% +0.1pt 1.9% 2.6% +0.7pt a5 105 88 2.5% +0.0pt 3.3% 140 3.5% +0.1pt FY21 FY22 G&A ™T&C = Marketing @ Fu
Slide 22: EBITDA full-year performance
2022 Full-Year Financial Performance EBITDA full-year performance: profitability secured thanks to the Efficiency Plan EBITDA (€ millions) = Resilient EBITDA at +3.1% of Net Sales ie. -1.7pts : % of we Gey = Net Sales yoy decrease v¥ 1P+3P GMV decreased by (18)% in 2022 amid macro-economic uncertain
Slide 23: EBITDA to Net Result
2022 Full-Year Financial Performance EBITDA to Net Result mem | coat] zozz | EBITDA 102.7 52.0 650.7) |" D&A due to the increase of strong investment in new B2B Fs C3GGhRSas AEG ened MA activities mainly dedicated to Octopia’s product developments D&A (89.6) (97.7) (8.1) |" Other non-recurring incom
Slide 24: Free Cash Flow before financial expenses
2022 Full-Year Financial Performance Free Cash Flow before financial expenses at €15m, a+€94m increase compared to 2021 2021 & 2022 LTM Cash Flow (€ millions, twelve months) fcachrlowstatement oz | 2022) Var | EBITDA 102.7 52.0 (50.7) Cash non-recurring expenses (8.8) (11.8) (3.0) Coat for ee sepmum
Slide 25: Liquidity and financing
29 Account agreement with Casino Undrawn authorized debt State guaranteed loan Other financial liabilities State guaranteed loan Net cash pooling agreements Term loan with Casino ▪ ▪ ▪ ▪ ▪ ▪
Slide 26: Implementing a €75m Efficiency Plan
2022 Full-Year Financial Performance Implementing a €75m Efficiency Plan to recalibrate SG&A & CAPEX by 2023 Efficiency Plan Key pillars of the Efficiency Plan Already €47m savings achieved vs. FY21 Recalibrate SG&A to new level of activity Warehousing capacity, marketing expenses, fixed costs, ...
Slide 27: Strategic Outlook
STRATEGIC OUTLOOK discount
Slide 28: Cnova committed towards a profitable platform model
Strategic Outlook Cnova committed towards a profitable platform model Reinforce our positioning on the Accelerate B2B development to B2c French market & improve B25 reach breakeven profitability i Cdiscount . +e Cdiscount.com © Advertising cctopia C-Logistics - Be the 1St French E-merchant * Provide