Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (September 2021)
54 slides from Fnac Darty Sa's investor presentation, September 2021
Slide 1: ISR Presentation 2021
ISR PRESENTATION 2021 September 2021
Slide 2: Contents
CONTENTS Group Presentation & Strategy 3 – 14 A Solid Governance 15 - 20 Fnac Darty’s CSR Strategy 21 - 35 Finance 36 - 46 2
Slide 3: Group Presentation & Strategy
GROUP PRESENTATION & STRATEGY 3
Slide 4: Fnac Darty at a Glance
FNAC DARTY AT A GLANCE A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM 2020 revenue breakdown by category • €7.5bn in revenue – c.25,000 employees Technical products 49,5% • Top 3 European Omnichannel Retailer: Editorial products 15,5% • 30 million references availabl
Slide 5: Two Iconic Brands with Responsible Values in Their DNA
FNAC DARTY, TWO ICONIC BRANDS WITH RESPONSIBLE VALUES IN THEIR DNA INDEPENDENT EXPERTISE RESPONSIBLE PRODUCTS AND CUSTOMERS’ ADVICE AND SERVICES Give access to culture Strong services offer for repair, re-use and product recycling Independent vendors to give best advice for an educated purchase #1 a
Slide 6: A Responsible Retailer Recognized by External ESG Organisations
A RESPONSIBLE RETAILER RECOGNIZED BY EXTERNAL ESG ORGANISATIONS 44 2020 100 • Top 20% worldwide (rank in Universe: 529 / 4,846) Information rate of 88% • Rank in Sector 9 / 73 (vs. 11/76 in 2019) For the 3rd time in a row • Information rate of 91% OUTPERFORMER AVERAGE PERFORMER 13 7,9 68 AA 38 out 2
Slide 7: Next Transformation Driven by Group Raison d'Être
OUR NEXT TRANSFORMATION WILL BE DRIVEN BY OUR POWERFUL GROUP RAISON D’ÊTRE Since 2018, Fnac Darty has adopted a corporate raison d’être COMMIT TO AN EDUCATED CHOICE AND A SUSTAINABLE CONSUMPTION At a time of hyperchoice and consumer expectations for more responsible consumption, this mission aims to
Slide 8: CSR Related Ambitions in Our New Strategic Plan
3 CSR RELATED AMBITIONS IN OUR NEW STRATEGIC PLAN, EVERYDAY, INCLUDING 1 CLEARLY STATED CSR PILLAR HOW DO WE COMMIT TO AN EDUCATED CHOICE AND A SUSTAINABLE CONSUMPTION, EVERYDAY? Build a digitized omnichannel retail Lead durable Scale the next in-home subscription-based behaviors assistance service
Slide 9: Our 5-Pillar CSR Strategy
OUR 5-PILLAR CSR STRATEGY 1 2 5 4 3 9
Slide 10: CSR Objectives Also Included in Our Financing Strategy
CSR OBJECTIVES ALSO INCLUDED IN OUR FINANCING STRATEGY In our new financing strategy launched in March 2021, we have extended our RCF line of credit to €500 million maturing maximum in 2028 with a CSR component that will permit the Group to improve its financing terms if the designated targets are a
Slide 11: Our Strategy and Commitments Meets Business Challenges & Opportunities
OUR STRATEGY AND COMMITMENTS MEETS BUSINESS CHALLENGES & OPPORTUNITIES CONSUMERS’ EXPECTATIONS FNAC DARTY STRATEGY FNAC DARTY CSR COMMITMENTS • CONTRIBUTION TO THE LOCAL ECONOMY, BEST IN CLASS CULTURAL AND SOCIAL LIFE THROUGH FNAC AGILITY / PROXIMITY DARTY OMNICHANNEL PLATEFORM OMNICHANNEL EXPERIENC
Slide 12: CSR Ambitions Will Help Achieve Financial Objectives
OUR CSR RELATED AMBITIONS WILL HELP US TO ACHIEVE OUR FINANCIAL OBJECTIVES Everyday ambitions ESG related objectives Business value added Financial objectives by 2025 by 2025 Build a digitized ✓ 50% of online sales will be ✓ Favor C&C, less environmental omnichannel retail Click & Collect impacting,
Slide 13: Fnac Darty Profile in 2025: Financial and Extra-Financial Ambitions
FNAC DARTY PROFILE IN 2025: FINANCIAL AND EXTRA- FINANCIAL AMBITIONS ESG AMBITIONS 135 -50% +50% 35% “Durability score” Transport & energy CO2 Products repaired in 20252 Of women in Top 200 by 20251 emissions in 2030 vs 2019 vs. 2019 to reach c. 2.5M managers of the Group BUSINESS & FINANCE AMBITION
Slide 14: A Business Model That Creates Sustainable Value for Stakeholders
A BUSINESS MODEL THAT CREATES SUSTAINABLE VALUE FOR OUR STAKEHOLDERS • CLIENTS: services, independent • Committed human advice and diversified product capital offerings • EMPLOYEES: training, quality of • A strong financial life at work and professional position equality • PARTNERS: a sustainable •
Slide 15: A Solid Governance
A SOLID GOVERNANCE 15
Slide 16: A Solid and Stable Board of Directors
A SOLID AND STABLE BOARD OF DIRECTORS… 79% of independent members 43% of female members 2 employees Directors 4 committees chaired by independent Directors of which: ▪ Audit Committee ▪ Appointments and Compensation Committee ▪ Strategy Committee ▪ Corporate, Environmental and Social Responsibility
Slide 17: Diverse Experiences and Skills Supporting Long-Term Value Creation
… WITH STRONG, DIVERSE AND MIX EXPERIENCES AND SKILLS THAT SUPPORT LONG-TERM VALUE CREATION 17
Slide 18: A Qualified and Experienced Executive Team
A QUALIFIED AND EXPERIENCED EXECUTIVE TEAM FULLY DEDICATED TO THE NEW STRATEGIC PLAN ENRIQUE MARTINEZ CHIEF EXECUTIVE OFFICER of Fnac Darty 38% of female members ✓ More than 20 years at Fnac Darty in various positions of responsability 13 members ✓ Member of the Executive Committee since 2004 JULIEN
Slide 19: Governance That Strengthens Integration of CSR Challenges
GOVERNANCE THAT STRENGTHENS THE INTEGRATION OF CSR CHALLENGES A Corporate, Environmental and Social Responsibility Committee has been created at Board level since 2013 CSR is overseen by the General Counsel in charge of CSR and Governance, a member of the Executive Committee The Ethics Committee (20
Slide 20: CSR Also Included in Remuneration Policy
CSR ALSO INCLUDED IN REMUNERATION POLICY 10% of the total bonus of the Executive Committee members is related to CSR objectives, 5% of which to the Group's extra-financial rating Continued to strengthen the integration of CSR criteria in the variable compensation with 10% of the bonus of all Group m
Slide 21: Fnac Darty CSR Strategy
FNAC DARTY “if d CSR STRATEGY
Slide 22: Key Risks Identified by a Materiality Analysis
4 MAJOR KEY RISKS, COVERED BY OUR CSR POLICY, HAVE BEEN IDENTIFIED BY A MATERIALITY ANALYSIS CSR RISK MAPPING MATERIALITY ANALYSIS Key Issues Customer survey Consultation of internal stakeholders Consultation of external stakeholders ETHICS FOR ALL Key issues THE CLIMATE SUSTAINABILITY OF THE DEVELO
Slide 23: A 5-Pillar CSR Policy
A 5-PILLAR CSR POLICY TO ADDRESS OUR RISKS AND SEIZE BUSINESS OPPORTUNITIES SUSTAINABLE CONSUMPTION HUMAN TERRITORIES AND CAPITAL CULTURE CLIMATE BUSINESS ETHICS 23
Slide 24: Promoting a Sustainable Consumption
PROMOTING A SUSTAINABLE CONSUMPTION OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Help customers to make an educated choice • Encourage repairs, give a second life to products and ensure waste collection and recycling 1.7M of repair products in 2020 • Contribute to public debate around sustainability No
Slide 25: Independent Expertise and Customers' Advice
AN INDEPENDENT EXPERTISE AND CUSTOMERS’ ADVICE FOR A RESPONSIBLE CONSUMPTION 1968 1984 2018 2019 2020 Creation of the Partnership with Launch of Launch of First retailer in first after-sales ENVIE - The product – the “Durable the world to services 2012 reparability index choice by Darty” operate an
Slide 26: Extending Products' Life Span
EXTENDING PRODUCTS’ LIFE SPAN IS A KEY ENGAGEMENT TO OUR CUSTOMERS ASSISTANCE & SECOND LIFE REPAIR CIRCULAR ECONOMY EDUCATED CHOICE RECYCLING 2+1 collecting system A 100% Fnac Darty recycling yard since 1994 26
Slide 27: An Economic, Social and Cultural Actor
FNAC DARTY, AN ECONOMIC, SOCIAL AND CULTURAL ACTOR OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Provide access to culture to as many people as Bookstore in France possible #1 Ticket vendor in France • Increase the positive impact on the territories Record shop owner in France (employment and solidarity
Slide 28: Fnac Darty's Climate Strategy
FNAC DARTY‘S CLIMATE STRATEGY OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Limiting the environmental impact of our activities through an ambitious CO2 and waste policy Member of the Ambition 4 Climate movement • Working on the definition of a CO2 emission reduction objective on scope 3 validated by th
Slide 29: Fnac Darty's Climate Strategy: Scope of Coverage
FNAC DARTY‘S CLIMATE STRATEGY SCOPE OF COVERAGE FNAC DARTY IS COMMITTED TO REDUCING CO2 EMISSIONS BY 50% BY 2030 vs. 2019 An objective in line with science and the 1.5°C trajectory Scope 1 Scope 2 Scope 3 – indirect emissions WAREHOUSE WORK + STORES GAS IN PROGRESS TO FUEL MEET THE SBT UPSTREAM INIT
Slide 30: Human Capital Our Key Asset: Skills
HUMAN CAPITAL OUR KEY ASSET DEVELOP SKILLS AND EMPLOYABILITY OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Continuation of strategic training programs • Development of sales expertise and strengthening NEW career website enhancing the recruitment managers’ leadership skills experience • Development of p
Slide 31: Human Capital: Gender Equality
HUMAN CAPITAL OUR KEY ASSET PROMOTE GENDER EQUALITY AND QUALITY OF LIFE IN THE WORKPLACE OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Guaranteeing equal treatment, promoting diversity in its Professional equality teams, and fostering equal opportunities 40% women in the total workforce >40% OF THE UNDE
Slide 32: Human Capital: Health & Safety
HUMAN CAPITAL OUR KEY ASSET GUARANTEE EMPLOYEE HEALTH & SAFETY AND DEVELOP COMMITMENT OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Give meaning to work and manage employee commitment • Prevention for delivery and installation personnel and after- Employee commitment sales technicians • Risk prevention
Slide 33: Fnac Darty Faces Ethical Requirements
FNAC DARTY FACES ETHICAL REQUIREMENTS OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Protecting the personal data of employees and customers • Preventing the risks of corruption Implementing a Vigilance Plan BUSINESS CODE OF CONDUCT in Feb 2021 available • Ensuring fiscal responsibility NEW in all countr
Slide 34: Finance
FINANCE 34
Slide 35: H1 2021 Results
“if H1 2021 RESULTS Vi
Slide 36: Continuing Public Health Restrictions in H1 2021
CONTINUING PUBLIC HEALTH RESTRICTIONS IN H1 2021 IN ALL REGIONS WHERE THE GROUP OPERATES January February 1 – April 2 April 3 – May 18 May 19 – June 30 National curfew c. 20% of the Group’s stores in France 3rd national lockdown Stores reopening from 6 PM are closed c. 90 Fnac and Darty stores close
Slide 37: Solid H1 2021 Results Despite Unprecedented Context
SOLID H1 2021 RESULTS DESPITE THE UNPRECEDENTED CONTEXT • Strong operational execution in H1 2021 ▪ Group revenue at €3,465m in H1 2021, up +21% on a like-for-like basis1 thanks to the strong momentum in all regions and all product categories ▪ Strong performance of stores of c.+28%1 and online sale
Slide 38: H1 2021 Group Financial Results
H1 2021 GROUP FINANCIAL RESULTS €m H1 2020 H1 2021 ▪ Current operating income at €34m, up €92m Revenue 2,849 3,465 compared to H1 2020 and higher than the level in H1 Gross margin 844 1,029 2019 on a comparable basis1 Costs 902 995 ▪ Continued tight control of operating costs, enabling Current opera
Slide 39: Free Cash Flow Generation
H1 2020 FREE CASH FLOW GENERATION €m H1 2020 H1 2021 ▪ EBITDA up €91m including the impact of IFRS 16 vs. H1 2020, in line with the current operating income trend EBITDA 119 210 ▪ Operating free cash flow stands at -€577m, mainly IFRS 16 impact -124 -125 impacted by: Non-recurring cash elements -9 2
Slide 40: A Strong Liquidity Position at the End of June
A STRONG LIQUIDITY POSITION AT THE END OF JUNE €m At December 31, At June 30, 2021 2020 Shareholders’ equity 1,373 1,409 ▪ New financing structure implemented in March 2021 to 1 Net debt -114 454 strengthen the Group’s financial flexibility, with: Gross debt 1,455 933 ▪ Placement of a first OCEANE b
Slide 41: 2021 Outlook
2021 OUTLOOK ▪ Current restrictions on opening hours in the Iberian Peninsula and following the latest announcements by the French government, the conditions of access to shopping centers of more than 20,000 sq.m. may change and consequently could affect the operating conditions of some of the store
Slide 42: Appendices H1 2021
APPENDICES H1 2021 FNAC DARTY
Slide 43: Definitions (1/2)
DEFINITIONS (1/2) • Definition of Like-for-like 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 operating inc
Slide 44: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 Without application of IFRS 16 EBITDA EBITDA excluding IFRS 16 Rents within the scope Current operating income before depreciation, EBITDA including rental expenses within the scope of amortization and provisions on fixed operational assets of IF
Slide 45: Q1/Q2/H1 2021 Revenue vs. 2020
Q1/Q2/H1 2021 REVENUE VS. 2020 Change vs. Q1 2020 Change vs. Q2 2020 Change vs. H1 2020 At constant FX At constant FX At constant FX and and and comparable (€m) Q1 2021 Reported Like-for-like Q2 2021 Reported comparable Like-for-like H1 2021 Reported comparable Like-for-like scope of scope of scope
Slide 46: H1 2021 Cash Flow Statement vs. 2020
H1 2021 CASH FLOW STATEMENT VS. 2020 (€m) H1 2020 H1 2021 Net debt excluding IFRS 16 as of January 1 18 (114) Cash flow from operations before tax, dividends and interest 109 212 Change in working capital (415) (579) Corporate income tax paid (24) (38) Operating investments (50) (46) Operating free
Slide 47: Balance Sheet
BALANCE SHEET At December At June 30, At December At June 30, Assets in €m 31, 2020 2021 Equity and Liabilities in €m 31, 2020 2021 Goodwill 1,654 1,654 Share capital 27 27 Intangible assets 506 512 Reserves related to equity 971 971 Conversion reserves -5 -6 Tangible assets 594 575 Other reserves 3
Slide 48: Store Network Evolution
STORE NETWORK EVOLUTION December 31, 2020 June 30, 2021 Owned Franchised Total Owned Franchised Total France and Switzerland(1) 412 339 751 412 354 766 Iberian Peninsula 67 5 72 67 5 72 Belgium and Luxembourg 85 0 85 85 0 85 Group 564 344 908 564 359 923 (1) including 13 foreign stores: 3 in Morocco
Slide 49: Appendices FY 2020
APPENDICES FY 2020 FNAC DARTY
Slide 50: Q1/Q2/Q3 2020 Revenue vs. 2019
Q1/Q2/Q3 2020 REVENUE VS. 2019 Change vs. Q1 2019 Change vs. Q2 2019 Change vs. Q3 2019 €m (IFRS 5 At constant FX At constant At constant Q1 2020 and Q2 2020 FX and Q3 2020 FX and excluding BCC) Reported comparable Like-for-like Reported comparable Like-for-like Reported comparable Like-for-like sco
Slide 51: Q4/FY 2020 Revenue vs. 2019
Q4/FY 2020 REVENUE VS. 2019 Change vs. Q4 2019 Change vs. 2019 €m At constant FX Q4 2020 At constant FX 2020 (IFRS 5 excluding BCC) and and comparable Reported Like-for-like Reported comparable Like-for-like scope of scope of consolidation consolidation France and Switzerland 2,348 11.3% 12.1% 11.7%
Slide 52: Simplified P&L
SIMPLIFIED P&L €m Reported (IFRS 5, excluding BCC) 2019 2020 Revenues 7,349 7,491 Current operating income 293 215 Non-current operating income and expenses -29 -16 Operating income 265 199 Financial expense -79 -51 Tax -72 -60 Consolidated net income from continuing operations, Group share 115 96 N
Slide 53: Disclaimer
DISCLAIMER IMPORTANT NOTICE: By reading this presentation, you agree to be bound by the following limitations and qualifications: certain information included in this release is not based on historical facts but on forward-looking statements. Such forward-looking statements speak only as of the date
Slide 54: ISR Presentation
ISR PRESENTATION 2021