Cnova NV — FY2019 Earnings Presentation
29 slides from Cnova NV's earnings presentation, Feb 18, 2020
Slide 1: Cnova Full Year 2019 Activity & Financial Performance
Cnova Full Year 2019 Activity & Financial Performance February 18, 2020
Slide 2: Disclaimer
Disclaimer 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,” “poten
Slide 3: Agenda
Agenda Full Year 2019 Business Highlights & Strategic Achievements Full Year 2019 Commercial & Financial Performance Outlook 3
Slide 4: Full Year 2019 Business Highlights
Full Year 2019 Business Highlights FY19 Main Highlights A pivotal year: growing our profitable platform 1 2 3 4 Strong growth and Accelerating growth Development of the Strong enhancement increasing of the marketplace marketplace of of Loyalty program profitability of products services GMV: €3.9bn M
Slide 5: Steady growth driven by marketplace and services
Full Year 2019 Business Highlights Steady growth driven by marketplace and services Total GMV (€bn) Marketplace GMV (€bn) Service GMV 3.9 1.3 +9.1%* +12.1% x3.4 1.1 3.6 2018 2019 2018 2019 2018 2019 ➢ GMV: 3.9 billion euros, +9.1% organic growth ➢ +3.9 pts contribution from marketplace: €1.3 billion
Slide 6: 2019 Strategic Achievements
Agenda 2019 Strategic Achievements Expanding B2C Products ➔ Marketplace Acceleration & Services ➔ Services Expansion ➔ Cdiscount à Volonté (CDAV) Vitality Tightening Bonds with ➔ Brand Awareness Enhancement our Clients ➔ Enriched customer journey ➔ International sales growth Developing International
Slide 7: Acceleration in the marketplace of products
Expanding B2C Products & Services Acceleration in the marketplace of products A sound performance… …sustained by a fast-expanding offer and an acceleration of FFM FY19 Marketplace share SKUs available Fulfillment by CD share In millionS +3.7 pts +34% +9.8 pts 38.1% 64 31% 48 21% 34.4% FY18 FY19 FY18
Slide 8: Extending and Diversifying Services Offering
Expanding B2C Products & Services Extending and Diversifying Services Offering ▪ Travel: GMV x10 in constant acceleration, +49% in 2H19 vs 1H19 Leisure − Launch of a 15k offer holiday packages marketplace ▪ Ticketing: strong acceleration with a x3.4 GMV peak on 4Q19 vs 4Q18 ▪ Energy: +86% GMV, +63%
Slide 9: Focus on the Success of Cdiscount Voyages
Expanding B2C Products & Services Focus on the Success of Cdiscount Voyages Travel: more offers, more brand awareness ▪ Marketplace of holiday packages: created in May, 15k offer end 2019, more to come Expanding 05/14 09/15 T4 the offer 1K 10K 15K Successful partnership with Disneyland ▪ Launched in
Slide 10: 2019 Strategic Achievements
Agenda 2019 Strategic Achievements Expanding B2C Products ➔ Marketplace Acceleration & Services ➔ Services Expansion ➔ Cdiscount à Volonté (CDAV) Vitality Tightening Bonds with ➔ Brand Awareness Enhancement our Clients ➔ Enriched customer journey ➔ International sales growth Developing International
Slide 11: Cdiscount à Volonté: An Ever-Expanding Loyal Customer Base
Tightening Bonds with our Clients Cdiscount à Volonté: An Ever-Expanding Loyal Customer Base €29 per year Unlimited access to Free unlimited next 1.2m products Private sales and > 200 magazines & day deliveries eligible exclusive offers news papers > 2m members > 2m members 36% GMV share 1.2m expres
Slide 12: Boosting our Brand through strong offline and online Media Presence
Tightening Bonds with our Clients Boosting our Brand through strong offline and online Media Presence Confirming #2 ▪ 20m Unique Monthly Visitors on average1 traffic position ▪ Driven by mobile growth: +26% UMV on mobile, 70% mobile share of traffic Raising brand ▪ Unaided awareness: +7pts over the
Slide 13: Delivery and multichannel initiatives
Tightening Bonds with our Clients Delivery and multichannel initiatives Lille Strasbourg Fast delivery options Paris Same-day region ▪ Same-day delivery available in 6 main French cities Lyon Delivery: Bordeaux region quicker, ▪ 40% of small parcels delivered the next day Marseille cheaper, Availabl
Slide 14: 2019 Strategic Achievements
Agenda 2019 Strategic Achievements Expanding B2C Products ➔ Marketplace Acceleration & Services ➔ Services Expansion ➔ Cdiscount à Volonté (CDAV) Vitality Tightening Bonds with ➔ Brand Awareness Enhancement our Clients ➔ Enriched customer journey ➔ International sales growth Developing International
Slide 15: Further developing international sales through a platform model
Developing International Further developing international sales through a platform model Expansion of Cdiscount’s international platform Strong GMV growth 25 countries +85% in Q4 vs Y-1 47 websites connected +44 vs Y-1 Increase in published products > 670k products available Creation of the Internat
Slide 16: 2019 Strategic Achievements
Agenda 2019 Strategic Achievements Expanding B2C Products ➔ Marketplace Acceleration & Services ➔ Services Expansion ➔ Cdiscount à Volonté (CDAV) Vitality Tightening Bonds with ➔ Brand Awareness Enhancement our Clients ➔ Enriched customer journey ➔ International sales growth Developing International
Slide 17: Innovations at the forefront of CSR
Committing to become the French Socially Responsible e-merchant Innovations at the forefront of CSR Multi CSR initiative awards Agrikolis, a Cnova’s CSR success story Logistics 11/18 02/19 12/19 Retailer environmental Integration in Test launched on 6 83 responsibility “The Warehouse” farms points N
Slide 18: Agenda
Agenda Full Year 2019 Business Highlights & Strategic Achievements Full Year 2019 Commercial & Financial Performance Outlook 18
Slide 19: GMV underlying growth drivers
2019 Commercial & Financial Performance GMV underlying growth drivers +9.1% organic GMV growth supported by Marketplace, CDAV and Mobile 1 Marketplace GMV share 2 CDAV GMV share 3 Mobile GMV share +3.7 pts +1.7 pts +5.5 pts 49.5% 38.1% 35.8% 34.4% 34.1% 44.0% 2018 2019 2018 2019 2018 2019 19
Slide 20: Gross Margin
2019 Commercial & Financial Performance Gross Margin Gross margin (% of net sales, € million, y-o-y growth) ▪Strong acceleration (+2.3 pts) in +2.3 pts gross margin as well as double-digit 17.8% growth in gross profit thanks to: 15.5% – Marketplace GMV share reaching high levels: 38.1% in 2019 (+3.7
Slide 21: SG&A
2019 Commercial & Financial Performance SG&A SG&A ▪SG&A accounted for 17.2% of net sales in (% of net sales) 2019, increasing by +1.5 points y-o-y 15.8% 17.2% − Fulfillment (7.5%; -0.2 pt): logistics productivity improvements in processes 7.5% and innovation (3D packing, Exotec, …) 7.7% − Marketing
Slide 22: EBITDA
2019 Commercial & Financial Performance EBITDA EBITDA* (€ million) Before IFRS 16 After IFRS 16 ▪EBITDA** +€31m increase to reach €79m restatement restatement − Positive both semesters: €18.1m in 1H19 79.0 (+€12m) and €60.9m in 2H19 (+€19m) +30.8 • Solid marketplace growth +25.3 50.6 48.2 • Strong e
Slide 23: IFRS 16 Restatement Impact
2019 Commercial & Financial Performance IFRS 16 Restatement Impact ▪ IFRS 16 (elimination of the distinction between operating leases and finance leases) was adopted on January 1, 2019 with retroactive application ▪ Main impact: recognition of an asset (the right to use the leased item) and a financ
Slide 24: Key Financial Indicators
2019 Commercial & Financial Performance Key Financial Indicators Post IFRS 16 Pre IFRS 16 Cnova N.V. Key Figures 2019 2018 Change 2019 2018 Change € in millions Net sales 2,194.9 2,174.3 +20.6 2,194.9 2,174.3 +20.6 Gross profit 389.8 336.7 +53.0 389.8 336.7 +53.0 Gross margin 17.8% 15.5% +2.3 pts 17
Slide 25: LTM Free Cash Flow
2019 Commercial & Financial Performance Free Cash flow of €35m on a 12-month basis LTM Free Cash Flow (€ million, twelve months) Change in Other cash Change in FCF before Net Net operating IFRS 16 Working Net financial interest Financial EBITDA expenses impact Capital CAPEX expenses expenses FCF Oth
Slide 26: Agenda
Agenda Full Year 2019 Business Highlights & Strategic Achievements Full Year 2019 Commercial & Financial Performance Outlook 26
Slide 27: Outlook for 2020
Outlook Outlook for 2020 ▪ Marketplace of products: solid growth driven by Fulfillment by Cdiscount Growth ▪ Services: Travel & Energy strong growth ▪ International: high growth, more connected websites and SKUs available ▪ Marketplace GMV share continuous increase Profitability ▪ Expansion of other
Slide 28: Thank you for your attention!
Thank you for your attention!
Slide 29: 2019 Free Cash flow before and after IFRS 16
APPENDIX 2019 Free Cash flow before and after IFRS 16 IFRS 16 restated IFRS 16 non-restated Consolidated Cash Flow Statement Last 12-months Last 12-months at December 31 (€ in millions ) December 2019 December 2019 EBITDA 79 51 Other cash operating items (13) (13) TOTAL IFRS 16 impact (27) - Repayme