Ceconomy Ag · XETR:CEC
Ceconomy — H1 2022/23 Earnings Presentation
34 slides from Ceconomy's earnings presentation, May 15, 2023
Slide 1: Results Presentation Q2/H1 2022/23
Results Presentation Q2/H1 2022/23 15 May 2023
Slide 2: Disclaimer and Notes
Results Presentation Q2/H1 2022/23 on 15 May 2023 DISCLAIMER AND NOTES This disclaimer shall apply in all respects to the entire presentation This presentation is intended for information only, does not constitute a this presentation are neither registered broker dealers nor financial (including all
Slide 3: Disclaimer
Results Presentation Q2/H1 2022/23 on 15 May 2023 3 Disclaimer Please note that MediaMarkt Sweden’s business is still included in our reported figures. However, it’s excluded from the guidance-relevant KPIs currency- and portfolio-adjusted sales growth, as well as adjusted EBIT.
Slide 4: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 5: Robust Q2 performance amid a challenging market environment
Results Presentation Q2/H1 2022/23 on 15 May 2023 5 Robust Q2 performance amid a challenging market environment Stores CE market soft in Q21 +6.4% +€35 m +€830 m Ceconomy maintains solid momentum Q2 sales Q2 adj. EBIT2 H1 FCF (particularly in DE, NL, TR) vs. PY vs. PY growth2 vs. PY Efficiency progr
Slide 6: CE market soft in Q2, B&M outperforms pure online players
Results Presentation Q2/H1 2022/23 on 15 May 2023 6 CE market soft in Q2, B&M outperforms pure online players MediaMarkt/Saturn maintained its market Total CE market declined by -3% in Q21 share / Bricks & Mortar market stabilized / Mid-teens customer traffic growth at group level / Online market de
Slide 7: CECONOMY's sales growth momentum sustained in Q2
Results Presentation Q2/H1 2022/23 on 15 May 2023 7 CECONOMY’s sales growth momentum sustained in Q2 Stores Online Business Countries B&M sales up by +11% +300 bp increase in Strong performance in Q2 yoy pick-up rate to 39% in DE, NL, TR In-house share at c. 21% Services & Solutions Growth Business
Slide 8: Q2 business & ESG highlights
Results Presentation Q2/H1 2022/23 on 15 May 2023 8 Q2 business & ESG highlights Our tech transformation continues ESG remains at the core of our business / Milestone reached with the smooth model replacement of our legacy order / Extending of participation in the management system in Germany Europe
Slide 9: We remain focused on costs and liquidity
Results Presentation Q2/H1 2022/23 on 15 May 2023 9 We remain focused on costs and liquidity / Clear focus on strict cost management to counter continuing inflationary trends Efficiency programs / Efficiency programs announced in Germany / Solid FCF improvement Liquidity / Driven by strong working c
Slide 10: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 11: P&L impacts of the disposal of Sweden
Results Presentation Q2/H1 2022/23 on 15 May 2023 11 P&L impacts of the disposal of Sweden Q2 2022/23 Adj. EBIT1 (€m) / Sweden classified as disposal in accordance -23 -6 -2 with IFRS 5 from Q2 2021/22 -4 -€72 m: / -€68 m one-off impacts recorded in Q2 -€4 m Fnac 2022/23 [-€63 m impairment, -€6 m op
Slide 12: Positive sales momentum driven by B&M, EBIT trend towards normalization continues
Results Presentation Q2/H1 2022/23 on 15 May 2023 12 Positive sales momentum driven by B&M, EBIT trend towards normalization continues in Q2 2022/23 Q2 development over the years = COVID restrictions / Solid sales performance (+6.4%1 vs. PY) +5.7% +6.4%1 / Sales increase primarily driven by successf
Slide 13: H1 performance keeps us on track to deliver our more likely guidance scenario 1
Results Presentation Q2/H1 2022/23 on 15 May 2023 13 H1 performance keeps us on track to deliver our more likely guidance scenario 1 H1 development over the years = COVID restrictions / Solid sales performance (+5.5%1 vs. PY) +4.0% +5.5%1 / Sales increase driven by DACH and Eastern Sales Europe (€m)
Slide 14: Positive sales development in DACH and Eastern Europe offsets weakness in Western & Southern Europe
Results Presentation Q2/H1 2022/23 on 15 May 2023 14 Positive sales development in DACH and Eastern Europe offsets weakness in Western & Southern Europe Segments Q2 2022/23 DACH / Sales increase in AT, DE and HU; CH declined Western/ / Significant EBIT improvement mainly due to Eastern €m DACH South
Slide 15: Robust growth of Services & Solutions sales driven by B&M
Results Presentation Q2/H1 2022/23 on 15 May 2023 15 Robust growth of Services & Solutions sales driven by B&M Q2 development over the years = COVID restrictions / Solid development of S&S sales (+5.2% vs. PY) driven by B&M +15.4% +5.2% Services& 307 323 / Warranties and consumer finance were the So
Slide 16: Gross margin stable; efficiency measures partially mitigate cost inflation
Results Presentation Q2/H1 2022/23 on 15 May 2023 16 Gross margin stable; efficiency measures partially mitigate cost inflation Q2 development over the years = COVID restrictions +0.1%p.1 / Gross margin stabilization in Q2 2022/23 Gross 19.6% margin 17.3% 14.9% 17.1% 17.2% / Product margin under pre
Slide 17: Channel shift and logistics offset goods margin pressure
Results Presentation Q2/H1 2022/23 on 15 May 2023 17 Channel shift and logistics offset goods margin pressure Q2 2022/23 / Gross margin stabilized in Q2 / Product margin impacted by increased GSM Gross share and persistent competitive margin1 17.1% 17.2% environment (as % of sales) / Lower logistics
Slide 18: Efficiency and effectiveness
Results Presentation Q2/H1 2022/23 on 15 May 2023 18 Our efficiency programs are ramping up EXPECTED SAVINGS MEASURES RESTRUCTURING COSTS ~€130 m Efficiency ~€100 m and effectiveness / ~€40 m savings vs. PY / Further streamlining of our / Program already announced in expected already in FY 2022/23 H
Slide 19: Net profit mainly impacted by the disposal of Sweden
Results Presentation Q2/H1 2022/23 on 15 May 2023 19 Net profit mainly impacted by the disposal of Sweden EBITDA to EPS Q2 Reported EBIT €m 2021/22 2022/23 / Reported EBIT declined due to portfolio EBITDA 132 119 impacts; lower earnings share from Fnac Darty, only minor restructuring items EBIT repo
Slide 20: Strong FCF improvement– substantial positive yoy change in NWC achieved
Results Presentation Q2/H1 2022/23 on 15 May 2023 20 Strong FCF improvement– substantial positive yoy change in NWC achieved Free cash flow (FCF) in H1 2022/23 (yoy change, €m) Δ NWC -73 +643 +17 +270 -26 +830 +9 +839 / Stronger YoY increase; reduction in inventories and trade receivables more than
Slide 21: Sound focus on NWC optimization
Results Presentation Q2/H1 2022/23 on 15 May 2023 21 Sound focus on NWC optimization Inventories (€m) Stock turnover (weeks) / Focus on stock management with clear targets on country level proved effective: -557 -1.8 – Total stock reduced 3.618 10,4 – Age structure improved 3.061 – Stock turnover im
Slide 22: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 23: Country portfolio optimization, disposal of Sweden and Portugal
Results Presentation Q2/H1 2022/23 on 15 May 2023 23 Country portfolio optimization, disposal of Sweden and Portugal #1 MediaMarkt Sweden: In FY 2021/22 MediaMarkt Sweden generated #1 sales of €506 m, EBIT -€13 m One-off cash outflow in mid-double-digit m€ #1 MediaMarkt Portugal: #1 In FY 2021
Slide 24: Q2 2022/23 supports our guidance for FY 2022/23 – Positive scenario 1 remains our main scenario
Results Presentation Q2/H1 2022/23 on 15 May 2023 24 Q2 2022/23 supports our guidance for FY 2022/23 – Positive scenario 1 remains our main scenario FY 2022/23 FY 2022/23 FY 2021/22 Guidance scenario 1 Guidance scenario 2 Sales Slight increase1 Clear decrease1 Adj. EBIT2 Clear increase Clear decreas
Slide 25: Capital Markets Day, June 2023, deep dive into our business and strategy
Results Presentation Q2/H1 2022/23 on 15 May 2023 25 Capital Markets Day, 2 June 2023, deep dive into our business and strategy SHOPPING USAGE IMPACT EMPLOYEE EXPERIENCE EXPERIENCE EXPERIENCE EXPERIENCE “We Create EXPERIENCE “Mobile-first “Growing lifecycle “Sustainability as “Front-line first ELECT
Slide 26: Capital Markets Day 2023
Results Presentation Q2/H1 2022/23 on 15 May 2023 26 Capital Markets Day 2023 WHEN: 2 June 2023 WHERE: XPERION Saturn store Cologne, Germany HOW: Onsite/hybrid
Slide 27: Q2/H1 results in summary
Results Presentation Q2/H1 2022/23 on 15 May 2023 27 Q2/H1 results in summary 01 02 Good operating momentum Despite a soft CE market, continues in Q2 we remain stable 03 04 We’re in control. Our We prioritize the customer measures to master the experience and are building current challenges are mome
Slide 28: Questions & Answers
Results Presentation Q2/H1 2022/23 on 15 May 2023 28 Questions & Answers Dr Karsten Wildberger Dr Kai-Ulrich Deissner
Slide 29: Financial calendar
Results Presentation Q2/H1 2022/23 on 15 May 2023 29 Financial calendar Capital Markets Q3/9M 2022/23 Q4/12M 2022/23 Q4/12M 2022/23 Day 2023 results Trading Statement results 2 June 2023 10 August 2023 26 October 2023 18 December 2023
Slide 30: Contact
Results Presentation Q2/H1 2022/23 on 15 May 2023 30 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 31: Appendix
Appendix
Slide 32: Current market environment and operational dynamics differ significantly from previous year's period
Results Presentation Q2/H1 2022/23 on 15 May 2023 32 Current market environment and operational dynamics differ significantly from previous year's period PY: Q2 2021/22 CY: Q2 2022/23 External / COVID restrictions in Germany, Austria, Netherlands / No more COVID restrictions headwinds / Supply chain
Slide 33: Net working capital
Results Presentation Q2/H1 2022/23 on 15 May 2023 33 Net working capital Q2 2022/23 €m 30/09/2021 31/03/2022 Change 30/09/2022 31/03/2023 Change Inventories 3,111 3,618 507 3,176 3,061 115 Trade receivables and similar claims 361 396 35 440 418 22 Receivables due from suppliers 1,142 1,163 20 1,296
Slide 34: CECONOMY
O CECONOMY