Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (September 2024)
38 slides from Fnac Darty Sa's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
INVESTOR PRESENTATION SEPTEMBER 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: Fnac Darty, an iconic household name
Fnac Darty, an iconic household name ▪ Fnac embarked on an international growth ▪ Over the last c. 10 years, Fnac Darty has transformed into a leading European retailer offering a diversified range strategy, entering Belgium in 1981, Spain of products and services (1993), Portugal (1998) and Switzer
Slide 6: 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 7: 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 8: Envisaged Unieuro acquisition
ENVISAGED UNIEURO ACQUISITION &
Slide 9: A unique & transforming opportunity
& : 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 Employee
Slide 10: Sustainable value creation
& : 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 synergie
Slide 11: Combination: €10.5bn revenue, €226m adj. EBIT
2023 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 11 1 Corresponds to EBIT adjusted for (i) non-recurring expenses/(
Slide 12: 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 ▪ €12.0 per share representing a premium of 42% over spot VWAP and a premium of 34% over 3m VWAP3
Slide 13: 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 14: 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 > SEPTEMBER 2 > OCTOBER 25 SUBJECT TO POSSIBLE EXTENSIONS Approval by Italian Market Authority ✓ Competition and other
Slide 15: Transaction rationale
Transaction rationale & 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 strategic fit wi
Slide 16: H1 2024 Results
Yh H1 2024 RESULTS FNAC DARTY
Slide 17: Simplified P&L
Simplified P&L €m H1 2023 H1 2024 Revenue 3,344 3,390 Current operating income (35) (36) Non-current operating income and expenses (100) (27) Operating income (136) (63) Financial expense (44) (37) Tax 19 27 Consolidated net income from continuing operations, Group share (163) (75) Net income from d
Slide 18: H1 2024 Free cash flow from operations
H1 2024 Free cash flow from operations €m H1 2023 H1 2024 EBITDA 143 146 ▪ EBITDA Flat ▪ WCR increase linked to unfavorable seasonality IFRS 16 impact (128) (125) and MediaMarkt integration Non-current cash items and ▪ Operating investments, nets benefiting from asset (12) (21) EBITDA non-cash items
Slide 19: Sound Financial structure
Sound Financial structure Dec. 31, Jun. 30, €m 2023 2024 ▪ Strong equity position Shareholders’ equity 1,538 1,459 Net debt1 (198) 496 ▪ Covenants met at 30 June: 1.8x EBITDA Gross financial debt 923 1,078 ▪ Successful refinancing of 2024 and 2026 Cash and cash equivalents 1,121 583 senior notes: €5
Slide 20: Outlook confirmed
Outlook confirmed ▪ As communicated, growth is expected to pick up in 2024, supported by the declining inflation and savings rate level. ▪ Q2 2024 business activity returning to growth in all geographies. ▪ The Group reaffirms its guidance (excluding envisaged Unieuro acquisition): Current Operating
Slide 21: Q&A
Q&A
Slide 22: Appendices
yy, 7, APPENDICES FNAC DARTY
Slide 23: 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 24: Perfectly aligned with Fnac Darty's strategy
Perfectly aligned with Fnac Darty's strategy 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 durable beha
Slide 25: Combined revenue of >€10bn
Combined revenue of >€10bn attractive balance, both by product category and geography 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 online 29
Slide 26: H1 2024 Key financials
H1 2024 Key financials Resilience … … in a market gradually returning to growth 12,00% Banque de France ▪ Stable gross margin (31%) 8,00% Fnac Darty ▪ Tight cost control, stability excl. 4,00% MediaMarkt integration 0,00% ▪ Current Operating Income stable -4,00% yoy -8,00% 2021 2022 Q1 2023 Q2 2023
Slide 27: H1 2024 Revenue and gross margin
H1 2024 Revenue and gross margin ▪ H1 2024 Revenue up by 1.4% on a reported basis at % LFL €3,390 million €m H1 2023 H1 2024 change1 ▪ By channel: 21% online sales o/w 51% using Click&Collect (+1.9 pt vs H1 2023) Revenue 3,344 3,390 +0.1% ▪ By product category: ▪ Editorial products impacted by high
Slide 28: Tight cost control
Tight cost control 1 075 ENERGY COSTS ENERGY CONSUMPTION1 -65% -€3m -14% H1 2023 H1 2024 H1 2023 H1 2024 1,075 1,072 1,086 HR COSTS RENT COSTS +5% +7% H1 2023 H1 2024 H1 2023 H1 2024 1 Electricity consumption, France. 28
Slide 29: H1 2024 Group financial results
H1 2024 Group financial results €m H1 2023 H1 2024 change Current operating income (35) (36) - ▪ Current Operating Income stable – Gross margin and OPEX stable Non-current operating income and – Slightly improving excluding MediaMarkt (100) (27) expenses integration and Weavenn ramp-up Operating inc
Slide 30: Balance sheet
Balance sheet Assets in €m Dec. 31, 2023 Jun. 30, 2024 Equity and Liabilities in €m Dec. 31, 2023 Jun. 30, 2024 Goodwill 1,680 1,680 Share capital 28 28 Reserves related to equity 987 987 Intangible assets 566 560 Conversion reserves (6) (6) Tangible assets 544 465 Other reserves 513 434 Rights of u
Slide 31: Cash-flow statement
Cash-flow statement €m H1 2023 H1 2024 Net Cash as of 1 January excl. IFRS 16 (5) 198 Operating free cash-flow (excl. IFRS 16) (660) (673) Dividends paid 0 (5) Shareholders’ equity component 0 2 Interest paid net of interest and dividends received (13) (10) Acquisition/disposal of subsidiaries net o
Slide 32: Everyday main CSR KPIs
Everyday main CSR KPIs KPIs 2022 2023 2025 targets Durability score1 115 118 135 Number of products repaired 2.3m 2.5m 2.5m Proportion of Women in the Top 200 managers 30% 33% 35% Share of women in the Executive Committee 42% 42% >40% 1 Average of a reliability score and a repairability score, based
Slide 33: Store network
Store network December 31, 2023 June 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, 3 in
Slide 34: Highly experienced operational managers
Highly experienced operational managers with strong track record in achieving profitable growth ENRIQUE MARTINEZ JEAN-BRIEUC LE TINIER Group CEO Group CFO 26 years at Fnac Darty 6 years at Fnac Darty Various positions and 20+ years of experience as financial responsibilities in the Group. manager fo
Slide 35: 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 36: 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 37: 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 37
Slide 38: Fnac Darty
FNAC DARTY