Cnova NV — Q3 2016 Earnings Presentation
28 slides from Cnova NV's earnings presentation, Oct 26, 2016
Slide 1: Cnova 3Q16 Financial Results
Cnova 3Q16 Financial Results October 26, 2016
Slide 2: Disclaimers (1/2)
Disclaimers (1/2) Forward-Looking Statements This presentation contains forward-looking statements. Such forward-looking statements may generally be identified by words like “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,”
Slide 3: Disclaimers (2/2)
Disclaimers (2/2) Important Information for Investors and Security Holders. This presentation is neither an offer to purchase nor a solicitation of an offer to sell securities. Investors are advised to read the tender offer statement of Cnova’s controlling shareholder Casino, Guichard-Perrachon (“Ca
Slide 4: Reporting changes in 3Q16
Reporting changes in 3Q16 Previous reporting structure New reporting structure Cnova N.V.’s Cnova N.V.’s Cnova N.V.’s Cnova N.V.’s discontinued continuing activities continuing activities discontinued activities activities Cdiscount Cnova Cdiscount •Discontinued Cdiscount Cdiscount Cnova •Discontinu
Slide 5: Agenda
Agenda 3Q16 Highlights 3Q16 Financial Results Outlook & Strategy 5
Slide 6: Key indicators 3Q16
3Q16 Financial Results Key indicators 3Q16 Cnova N.V.1 GMV2 € 681 Growth of 6.3% vs. 3Q15 million Impact from unseasonable weather and tragic events in July Marketplace Increase of 347 bps vs. 29.8% in 3Q15 share of GMV 33.3% Ramp-up of fulfillment services Growth of 2.8% vs. 3Q15 Net Sale
Slide 7: GMV
3Q16 Financial Results GMV GMV Breakdown (€ million, % of total GMV) Other products a) Computers and electronics Home and appliances +6.3% 681 640 8% Others b) 7% 28% 31%* Marketplace c) 9% 9% 23% 21% Direct sales 32% 30% 3Q15 3Q16 Total GMV grew 6.3% in 3Q16 (9M YTD: +12.3%) – Commercial activity
Slide 8: KPIs
3Q16 Financial Results KPIs Marketplace evolution Traffic Items sold Cdiscount FR Cnova N.V. Cnova N.V. y-o-y (million visits) (million) Number of growth 9.5 9.2 sellers 8.0 8.3 (thousand) +19.9% 7.3 +15% +6.5% 192.5 11.1 Product 34 9.3 180.8 offerings 29 26 (million) 24 22 +54% 33.3% Share of 32.4%
Slide 9: Agenda
Agenda 3Q16 Highlights 3Q16 Financial Results Outlook & Strategy 9
Slide 10: Key Figures
3Q16 Financial Results Key Figures Cnova N.V. Key Figures* Q3 2015 Q3 2016 € million, unaudited (restated*) GMV 681 640 Net sales 414 403 Gross profit 58 55 Gross margin 14.1% 13.6% SG&A (59) (57) Operating EBIT (1) (2) Cdiscount France 2 1 Cnova Holding and International (3) (3) Net profit/(loss) f
Slide 11: Net sales and Gross margin
3Q16 Financial Results Net sales and Gross margin Net sales Gross margin (€ million, y-o-y growth) (% of net sales, € million, y-o-y growth) +2.8% +46bps 414 14.1% 403 13.6% Gross profit growth 54.9 58.3 + 6.3% 3Q15 3Q16 3Q15 3Q16 Improvement of +46bps in 3Q16 y-o-y at Cnova N.V. (Cdiscount France
Slide 12: SG&A and EBIT
3Q16 Financial Results SG&A and EBIT SG&A EBIT (% of net sales) (€ million, % of net sales) Fulfillment Tech and content Marketing G&A -0.6% -0.3% 14.2% 14.4% -1.1 -2.4 7.7% 6.7% 3Q15 3Q16 1.9% 1.5% 2.7% 3.4% 2.3% 2.3% Cdiscount FR (€ million) 1.1 1.7 3Q15 3Q16 Slightly higher SG&A: 14.4% (vs. 14.
Slide 13: Free cash flow
3Q16 Financial Results Free cash flow 3Q16 Free cash flow (€ million, twelve months) 33.2 (32.8) 0.4 76.5 (82.1) 38.8 Net result from Change in Working Non cash Net cash from continuing CAPEX FCF Capital items* activities activities Free cash flow at breakeven Net cash from continuing operating
Slide 14: Key Cnova Brazil indicators
3Q16 Financial Results Key Cnova Brazil indicators Cnova Brazil* Reduction of -24.2% vs. 3Q15 GMV R$ 1.5 Strong growth of marketplace share: 21.2% (+926 bps) Focus on improving free traffic and active customer base for billion rebound Reduction of -38.1% vs. 3Q15 R$ 946** Main operational
Slide 15: Agenda
Agenda 3Q16 Highlights 3Q16 Financial Results Outlook & Strategy 15
Slide 16: Operational and service improvements
Outlook & Strategy Operational and service improvements Increased visibility of CDAV on Cdiscount.com navigation Daily private offers to CDAV subscribers More than 4 thousand references and growing Service available to all Cdiscount clients in Paris, and free for CDAV subscribers Multiplat
Slide 17: Cdiscount FR: 4Q16 and 2017 Priorities
Outlook & Strategy Cdiscount FR: 4Q16 and 2017 Priorities Expand Cdiscount a Volonté – Expand new exclusive promotions to CDAV customers – Launch new and exclusive services Grow marketplace and quality control – Continue recruitment of new sellers and push for improvements of quality and informa
Slide 18: Cnova BR: Reorganization within Via Varejo
Outlook & Strategy Cnova BR: Reorganization within Via Varejo Update on expected timeline: 1– Via Varejo shareholders’ approve Reorganization at EGM Sept. 12, 2016 1– Cnova shareholders’ vote to approve Reorganization at EGM Oct. 27, 2016 1– Closing of Reorganization (subject to EGM) Oct 31, 2016
Slide 19: Annex
Annex Cnova
Slide 20: Annex A - Consolidated Financial Statements
October 26, 2016 Annexes Annex A - Cnova N.V. 3rd Quarter and FY 2015 Consolidated Financial Statements (unaudited) Consolidated Income Statement 3rd Quarter Full Year 2015 Change 2015 € millions, unaudited 2016 (restated*) (restated*) Net sales 414.1 402.7 +2.8% 1,737.9 Cost of sales (355.7) (347.9
Slide 21: Consolidated Balance Sheet
October 26, 2016 Consolidated Balance Sheet Sept. 30, 2016 Dec. 31, 2015 Sept. 30, 2015 € millions, unaudited (restated*) (restated*) ASSETS Cash and cash equivalents 181.9 400.8 291.8 Trade receivables, net 67.5 129.7 138.0 Inventories, net 226.1 415.0 418.0 Current income tax assets 0.6 0.8 0.8 Ot
Slide 22: Consolidated Cash Flow Statement
October 26, 2016 Consolidated Cash Flow Statement Last Three Months Last Twelve Months Full Year at September 30 (except FY 2015, € millions, unaudited) 2016 2015 2016 2015 2015 (restated*) (restated*) (restated*) Net profit/(loss) from continuing operations (15.9) (8.2) (81.4) (37.1) (77.5) Net pro
Slide 23: Annex B - Additional Financial Information
October 26, 2016 Annex B - Cnova N.V. Additional Financial Information (unaudited) Selected 3rd Quarter Data 2015 2016 Restated* Pro forma** € millions, unaudited (as of Sept. 30, 2016) (as of Sept. 30, 2015) GMV 680.9 640.3 1,125.7 Net sales 414.1 402.7 785.3 Gross profit 58.3 54.9 97.7 % of net sa
Slide 24: Annex C - Cnova Brazil (discontinued activity)
October 26, 2016 Annex C - Cnova Brazil (discontinued activity) Additional Financial Information (unaudited) Selected 3rd Quarter Data 2015 2016 R$ millions, unaudited Restated* GMV 1,465.4 1,934.5 Net sales 946.1 1,528.5 Gross profit 171.8 179.0 % of net sales (Gross margin) 18.2% 11.7% SG&A (247.1
Slide 25: Annex D - Definitions
October 26, 2016 Annex D - Definitions Adjusted EPS or Adjusted earnings per share – calculated as adjusted net profit/(loss) divided by the weighted average number of ordinary shares outstanding during the applicable period. See “Non-GAAP Reconciliations” section for additional information. Adjuste
Slide 26: Annex E - Non-GAAP Reconciliations
October 26, 2016 Annex E - Non-GAAP Reconciliations In addition to disclosing financial results in accordance with International Financial Reporting Standards, or IFRS, this earnings release contains non-GAAP financial measures that Cnova uses as measures of its performance. These non- GAAP measures
Slide 27: Free cash flow
October 26, 2016 Free cash flow Free cash flow is calculated as net cash from/(used in) continuing operating activities less capital expenditures (purchases of property, equipment and intangible assets) as presented in our cash flow statement. Free cash flow is a financial measure used by Cnova’s ma
Slide 28: Adjusted EBITDA
October 26, 2016 Adjusted EBITDA Adjusted EBITDA is calculated as operating profit/(loss) from ordinary activities (operating EBIT) before depreciation and amortization expense and share based payment expenses. We have provided a reconciliation below of this measure to operating profit/(loss) from o