Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (November 2024)
34 slides from Fnac Darty Sa's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
INVESTOR PRESENTATION NOVEMBER 2024
Slide 2: Disclaimer
Disclaimer Important notice By reading this presentation, you agree to be bound by the following limitations and qualifications: The offer for Unieuro shares (the “Offer”) has not been and will not be made in the United States of certain information included in this release is not based on historica
Slide 3: Fnac Darty, a European leader in omnichannel retail
FNAC DARTY, A EUROPEAN LEADER IN OMNICHANNEL RETAIL
Slide 4: Snapshot of a European omnichannel leader
Snapshot of a European omnichannel leader 15% 47% 1,010 1 #1 Non-grocery stores 43% Franchises 84 in Belgium Other products and services Consumer electronics / Luxemburg Retailer in France, Belgium and 18% €7.9bn Switzerland 838 in France / Switzerland Editorial 2023 Revenue #1 products 88 in Spain
Slide 5: Our strategy Everyday
Our strategy Everyday built to strengthen our positioning and capture growth Build a digitized omnichannel retail • Best-in-class online capacities Promote sustainable behaviors • A profitable and digitized store network • A more sustainable offer, combined • A high-value offer with customers’ orien
Slide 6: Proven ESG leading retailer
Proven ESG leading retailer 2023 KEY ACHIEVEMENTS TARGETS 2025 RATINGS -26% -50%1 65/100 65/100 Reduction in CO2 emissions from energy and transport -17% AA Reduction in electricity consumption A- 2.5 M c.2.5 M vs. sector at C Products repaired Low ESG Risk Rating with ‘robust Management 118 of ESG
Slide 7: 9M 2024 Revenue
9M 2024 REVENUE OCTOBER 15, 2024
Slide 8: 9m 2024 Highlights
9m 2024 Highlights Revenue Unieuro €5,238m +1.0% Successful 2024 Current on a reported basis vs 9m 2023 acquisition Operating Income2 target raised, expected to Services Gross margin rate Sustained high single exceed €180m up 50 bps1 digit growth vs 9m 2023 1 Excluding dilutive impacts from Franchis
Slide 9: Revenue and gross margin performance
Revenue and gross margin performance ▪ By region: 9m 2024 Revenue ▪ Iberian Peninsula strong performance, MM integration well on track €5,238m +1.0% ▪ France & Switzerland / Belgium & Luxemburg almost stable (-0,2% LFL1) ▪ By product category: vs 9m 2023 ▪ Editorial products: good performance of boo
Slide 10: Unieuro acquisition update
Unieuro acquisition update A unique & ▪ Build the leading player in specialized retail in Western & Southern Europe with >€10bn revenues transforming and #1/#2 positions in its main markets opportunity ▪ Unlock >€20m of run-rate synergies ▪ Value creating for all stakeholders 91.15% of the share cap
Slide 11: 2024 Outlook revised up
2024 Outlook revised up ▪ First encouraging signals from macro indicators : decreasing inflation and interest rates ▪ Solid performance of Services ▪ Major end-of-year sales events will be decisive high points ▪ Assuming no unfavorable change in the economic and geopolitical context, the Group revis
Slide 12: Q&A
Q&A
Slide 13: Appendices: Unieuro
yy, 7, APPENDICES UNIEURO FNAC DARTY
Slide 14: Unieuro: A retail leader in Italy
Unieuro: A retail leader in Italy outperforming its market 5231 Stores 12% 59% o/w 48% affiliates Other products Consumer and services electronics 17% Online #1 €2.6bn o/w 31% C&C 29% 2023/24 Revenue Domestic Customer Best Retailer appliances 8% CAGR (Consumer over 2016/17-2023/242 Electronics) 17%
Slide 15: Transaction rationale
Transaction rationale & Unieuro a unique opportunity, delivering sustainable value Unique ▪ Consolidate our European leadership in specialized retail opportunity ▪ Key combined figures: >€10bn revenue, ~30,000 professionals and > 1,500 stores ▪ Leading positions in our main markets ▪ Strong strategi
Slide 16: Transaction highlights
Transaction highlights ▪ Fnac Darty and Ruby Equity Investment to launch a mixed Key public tender offer1 for each Unieuro share transaction ▪ €9.0 in cash 5 terms ▪ 0.10 newly issued Fnac Darty shares2 ▪ C. €12 per share representing a premium of 42% over spot VWAP and a premium of 34% over 3m VWAP
Slide 17: Fnac Darty & Unieuro: Sustainable value creation
& Unieuro : Sustainable value creation >€20m + run-rate synergies1 Leveraging (pre-tax, in 2025) capabilities, processes and systems Upside from Positive Private label further management synergy impact synergies potential on current operating to be income and free cash flow explored post Purchasing
Slide 18: Perfectly aligned with Fnac Darty's strategy
Perfectly aligned with Fnac Darty's strategy Unieuro Build Strengthen a digitized Omnichannel the omnichannel trade omnichannel retail Scale Grow the next in-home Services beyond trade subscription-based (services, retail media, private assistance service label and 2nd Life) Lead Sustainability dura
Slide 19: Fnac Darty & Unieuro combination
2023 Unieuro Combination Incl. synergies Dec. 31, 2023 Feb. 28, 2024 Revenue €7.9bn + €2.6bn = €10.5bn Adj. EBIT1 €171m €35m €226m As a % of revenue 2.2% + 1.3% = 2.2% Headcount ~25,000 + ~5,000 = ~30,000 Store network >1,000 + >500 = >1,500 19 1 Corresponds to EBIT adjusted for (i) non-recurring ex
Slide 20: Combined revenue of >€10bn
Combined revenue of >€10bn attractive balance, both by product category and geography Unieuro Combination Dec. 31, 2023 Feb. 28, 2024 Revenue €7.9bn €2.6bn €10.5bn Consumer electronics 15% 12% 14% 14% 59% 22% By product Domestic appliances 17% 21% 47% 22% 18% + = category Editorial products online o
Slide 21: Mixed cash and shares offer
Mixed cash and shares offer protecting Fnac Darty’s balance sheet and capital allocation Offer consideration ~6.6% Dilution of Fnac Capital increase (c. €60m) Darty shareholders2 c.25% ¬ With existing EGM authorization Shares ¬ ~2.0m shares1 Cash contribution (c. €56m) €56m c.1/3 additional net debt
Slide 22: Indicative transaction timeline
Indicative transaction timeline Expected completion in Q4 2024 Announcement Offer filing Offer opening Offer closing Integration ✓ September 2, 2024 ✓ ✓ July 16, 2024 July 29, 2024 > Approval by Italian Market Authority ✓ Competition and other regulatory approval ongoing 22
Slide 23: Fnac Darty & Unieuro: a unique & transforming opportunity
& Unieuro : a unique & transforming opportunity #1 #2 85 PoS #2 Build the leading Unlock >€20m of run-rate Western 15 PoS Player synergies & Southern In specialized retail in Player Western & Southern #1 Europe with >€10bn revenues and #1/#2 817 PoS1 positions in its main 30,000 #1 523 PoS² markets
Slide 24: Appendices: Fnac Darty
yy, 7, APPENDICES FNAC DARTY
Slide 25: Subscription service generating more recurring, sticky revenues
Subscription service generating more recurring, sticky revenues x1.5 repeat shops > 1.1 million subscribers compared to a standard in 2023 Darty customer Essentiel €11.99/month 2 million subscribers in 2025 Evolution €16.99/month x1.7 average cart size compared to a standard Subscription rolled out
Slide 26: 2023 Cash-flow statement
2023 Cash-flow statement €m 2022 2023 Net Cash as of January 1 excl. IFRS 16 247 (5) Operating free cash-flow (excl. IFRS 16) (30) 180 Dividends paid (55) (21) Shareholders’ equity component – OCEANE bonds 0 0 Interest paid net of interest and dividends received (28) (26) Acquisition/disposal of sub
Slide 27: 2023 Simplified P&L
2023 Simplified P&L €m 2022 2023 Revenue 7,949 7,875 Current operating income 231 171 Non-current operating income and expenses (27) (131) • Exceptional elements1 (4) (106) • Other non-current elements (23) (25) Operating income 204 40 Financial expense (45) (79) Tax (54) (31) Consolidated net incom
Slide 28: 2023 Simplified P&L (H1 & H2)
2023 Simplified P&L (H1 & H2) €m H1 2022 H2 2022 H1 2023 H2 2023 Revenue 3,428 4,521 3,344 4,531 Current operating income 19 212 (35) 206 Non-current operating income and expenses (14) (13) (100) (30) Operating income 5 199 (136) 176 Financial expense (18) (27) (44) (35) Tax (3) (51) 19 (49) Consoli
Slide 29: 2023 Balance sheet
2023 Balance sheet Assets in €m 31 Dec. 2022 31 Dec. 2023 Equity and Liabilities in €m 31 Dec. 2022 31 Dec. 2023 Goodwill 1,654 1,680 Share capital 27 28 Reserves related to equity 971 987 Intangible assets 562 566 Conversion reserves (4) (6) Tangible assets 570 544 Other reserves 518 513 Rights of
Slide 30: Store network
Store network December 31, 2023 September 30, 2024 Owned Franchised Total Owned Franchised Total France and Switzerland1 407 431 838 406 434 840 Iberian Peninsula 82 6 88 80 5 85 Belgium and Luxembourg 84 0 84 84 0 84 Group 573 437 1,010 570 439 1,009 1 Including 13 stores abroad (1 in Saudi Arabia,
Slide 31: Definitions (1/2)
Definitions (1/2) ▪ Definition of like-for-like (LFL) sales growth ▪ This indicator measures changes in revenue excluding exchange rate fluctuations, the impact of change in scope and the impact of the opening and closing of directly owned stores since January 1, N-1. ▪ Definition of current operati
Slide 32: Definitions (2/2)
Definitions (2/2) With application of IFRS 16 IFRS 16 restatement Without application of IFRS 16 Current EBITDA Current EBITDA excluding IFRS 16 Current operating income before depreciation, Rents within the scope amortization and provisions on fixed operational of IFRS 16 Current EBITDA including r
Slide 33: Investor Relations contacts
Investor Relations contacts DOMITILLE VIELLE LAURA PARISOT Head of Investor relations Investor relations domitille.vielle@fnacdarty.com laura.parisot@fnacdarty.com +33 (0)6 03 86 05 02 +33 (0)6 64 74 27 18 33
Slide 34: Fnac Darty
FNAC DARTY