Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — H1 2014 Earnings Presentation
30 slides from Fnac Darty Sa's earnings presentation, Jul 30, 2014
Slide 1: 2014 Half-Year Results
July 30th, 2014 2014 HALF-YEAR RESULTS
Slide 2: Disclaimer
Disclaimer Confidential IMPORTANT NOTICE: By attending the meeting where this presentation is given, or by reading the presentation slides, you agree to be bound by the following limitations and qualifications: Certain information included in this presentation are not historical facts but are forwar
Slide 3: Key highlights
Key highlights Stabilization of Group sales in the 2nd quarter: -0.3% on a like-for-like basis thanks to sales growth in France : +0.8% on a like-for-like basis Group sales down -1.1%* in the 1st half (vs. -5.2% in the same period of 2013) Decrease of -€7m in current operating income incre
Slide 4: Improved sales trend continued in the 2nd quarter
Improved sales trend continued in the 2nd quarter Group sales evolution 2nd quarter 2014 sales evolution Iberian Other FY 2013 Q1 2014 Q2 2014 Group France Peninsula Brazil countries Sluggish consumer environment in all countries with declining markets and increased commercial intensity Further
Slide 5: Stepping up our omnichannel proposal
Stepping up our omnichannel proposal Sustained growth of online volume Driven notably by the rapid development of Marketplaces Marketplaces gross merchandise volume (GMV) up 30%* Ramp up of Marketplace in Portugal, now accessible to professional sellers Increased contribution of omnichanne
Slide 6: Deployment of new product categories well underway
Deployment of new product categories well underway Sales in new product categories (% merchandise sales) 10% Contribution of new product categories to sales 8% increasing gradually 6% Successful deployment of mobile phone sections in FY 2013 Q1 2014 Q2 2014 France Stationery sections deployed
Slide 7: Expansion on new formats in line with objective
Expansion on new formats in line with objective Openings in the 1st half 2 proximity stores in France (Puy-en-Velay, Boulogne-sur-Mer) 1 travel retail in Brazil (Guarulhos airport / Sao Paulo state) 25 new format stores end of June 2014 6 proximity / 19 travel retail 2.3% of banner sales
Slide 8: Enhancing customer service
Enhancing customer service Introduction of Fnac Express+ Unlimited express delivery of any product available on Fnac.com* For a one-year subscription Launch of Pass Location Exclusive rental service for technical products Now available for Apple products Soon to be extended to other ca
Slide 9: Good execution of cost savings program offsets most of the margin pressure
Good execution of cost savings program offsets most of the margin pressure €m H1 2013 H1 2014 % CHANGE Half-year sales down -1.1% at constant forex and REVENUES 1,669 1,639 -1.8% comparable scope of consolidation Gross Margin 508 489 -3.7% Decrease in gross margin (-60 bp) due to % Revenues 30.4
Slide 10: Focus France
Focus France €m H1 2013 H1 2014 % Change 2014 quaterly sales evolution Q1 Q2 Revenues 1,161 1,153 -0.7% +0.8% Current operating -16.1 -21.3 -32.3% income -1.5% -0.1% -0.7% Operating margin -1.4% -1.8% - Cst FX and comparable scope of consolidation Like-for-like Sales recovery confirmed with like-f
Slide 11: Focus Iberian Peninsula
Focus Iberian Peninsula €m H1 2013 H1 2014 % Change 2014 quaterly sales evolution Q1 Q2 Revenues 286 286 0.0% Current operating 7.1 4.7 -33.8% income +0.6% -0.6% Operating margin 2.5% 1.6% - X%: vs n-1 at cst FX and comparable scope of consolidation Confirmation of sales stabilization in a context
Slide 12: Focus Brazil
Focus Brazil €m H1 2013 H1 2014 % Change 2014 quaterly sales evolution Revenues 92 77 -15.8% Q1 Q2 Change at constant rate -0.6% Current operating +0.9% -2.4 -2.6 -8.3% income -2.2% Operating margin -2.6% -3.4% - X%: vs n-1 at cst FX and comparable scope of consolidation Poor performance in June c
Slide 13: Focus other countries
Focus other countries €m H1 2013 H1 2014 % Change 2014 quaterly sales evolution Revenues 131 123 -5.8% Q1 Q2 Change at constant rate -6.0% Current operating -4.8% -1.0 -0.5 50.0% income -7.1% Operating margin -0.8% -0.4% - X%: vs n-1 at cst FX and comparable scope of consolidation Improved sales p
Slide 14: Decrease in net current income of -€7m
Decrease in net current income of -€7m H1 H1 % €m 2013 2014 Change Current operating income -12.4 -19.7 -58.9% Stable non-current operating items Non-current operating income 2014 net expenses comprise mostly -7.8 -7.6 +2.6% and expenses restructuring costs and reversal of Operating income -20.2
Slide 15: Improvement in free cash flow generation: +€19m
Improvement in free cash flow generation: +€19m H1 H1 €m Var. 2013 2014 Increase in cash flow from operations due to lower non-current cash items Cash flow from operations before tax, dividends and interest -8 9 +17 and notably restructuring expenses Change in inventories 23 26 +3 Further optimi
Slide 16: Net cash position improved by €69m over the last 12 months
Net cash position improved by €69m over the last 12 months 27 108 -18 2 -50 Free cash flow €67m 196 127 Net cash position at Cash Flow before tax, Change in working Corporate income tax Capex Other Net cash position at June 30, 2013 dividends and interest capital requirement paid June 30, 2014 (befo
Slide 17: Enhanced financial flexibility
Enhanced financial flexibility €m 12/31/2012* 06/30/2013 12/31/2013 06/31/2014 Shareholders’equity 527 490 540 510 Net Cash 422 127 461 196 Change in net cash +39 +69 High level of shareholders’equity Net cash position improved by €69m over the last twelve months Financial covenants met on the
Slide 18: Conclusion and outlook
Conclusion and outlook The interim results confirm the gradual improvement in the sales performance of the Group and the strengthening of its financial profile. Market conditions to remain unchanged for the rest of the year, with declining markets and strong competitive pressure. Market share
Slide 19: Appendices
July 30th, 2014 2014 HALF YEAR RESULTS Appendices
Slide 20: Q1 and Q2 revenue
Q1 and Q2 revenue Change vs Q1 2013 Change vs Q2 2013 at constant FX at constant FX Q1 2014 and Q2 2014 and Like for like Like for like €m Reported comparable Reported comparable at constant FX at constant FX scope of scope of consolidation consolidation France 585 -1.4% -1.5% -0.7% 568 0.1% -0.1% 0
Slide 21: H1 revenue
H1 revenue Change vs H1 2013 at constant FX H1 2014 and Like for like €m Reported comparable at constant FX scope of consolidation France 1,153 -0.7% -0.8% -0.1% Iberian 286 0.0% 0.0% -1.0% Peninsula Brazil 77 -15.8% -0.6% -0.8% Other 123 -5.8% -6.0% -6.0% countries Group 1 639 -1.8% -1.1% -0.8% 201
Slide 22: EBITDAR
EBITDAR H1 2013 H1 2014 % Change Current operating income -12 -20 -58.9% Net depreciation and amortization 33 36 9.1% charges EBITDA 21 16 -20.4% Rents 70 65 -6.8% EBITDAR 90 81 -9.9% 2014 HALF YEAR RESULTS 22 July 30th, 2014
Slide 23: Financial charges
Financial charges €m H1 2013 H1 2014 % Change Cost of net indebtedness 0 0 na Other financial charges (net)(1) -4 -5 -23.7% Financial charges (net) -4 -5 -17.1% (1) Includes expense on the cost of free consumer credit, the impact of discounting assets and liabilities and fees related to the revolvin
Slide 24: Net current income
Net current income €m H1 2013 H1 2014 Income before tax -24 -32 Non-current operating expenses and Revenues -8 -8 Current income before tax -17 -25 Current tax (expense) / Income -6 -5 Tax on non-current items 0 0 Total tax charge -7 -5 Net current income -23 -30 2014 HALF YEAR RESULTS 24 July 30th,
Slide 25: Balance sheet
Balance sheet H1 H1 H1 H1 ASSETS in €m EQUITY AND LIABILITIES in €m 2013 2014 2013 2014 Goodwill 324 332 Share capital 17 17 Reserves related to equity 494 495 Intangible assets 71 66 Conversion reserves 1 0 Tangible assets 183 166 Other reserves -21 -9 Non-current financial assets 7 7 Equity attrib
Slide 26: Cash flow statement
Cash flow statement €m H1 2013 H1 2014 Net income from continuing operations -31 -37 Net additions to depreciation, amortization and provisions 16 38 Financial interest income and expense 1 3 Net tax charge payable 6 5 Cash flow from operations before tax, dividends and interest -8 9 Change in worki
Slide 27: Net cash position
Net cash position 500,0 Free cash flow - €272m €m 450,0 9 400,0 350,0 -263 300,0 250,0 461 9 1 0 200,0 -2 -16 -2 150,0 100,0 196 50,0 0,0 Net cash Cash Flow Change in Corporate Capex Increase in Net financial Net interest paid Other Net cash position at before tax, working capital income tax paid ca
Slide 28: Shareholders' funds
Shareholders’ funds €m 9 550,0 0 0 0 -39 450,0 350,0 540 250,0 510 150,0 50,0 Shareholder's funds as Increase in capital Total comprehensive Treasury share Dividends paid Valuation of Shareholder's funds as -50,0 of December 31, 2013 income sharebased payments of June 30, 2014 2014 HALF YEAR RESULTS
Slide 29: Store network
Store network December 31, 2013 June 30, 2014 Owned Franchised Total Owned Franchised Total France 87 21* 108 85 23* 108 Iberian Peninsula 44 0 44 44 0 44 Brazil 11 0 11 12 0 12 Other countries 13 0 13 13 0 13 Group 155 21 176 154 23 177 * Included 1 store in Morocco 2014 HALF YEAR RESULTS 29 July 3
Slide 30: Exchange rates
Exchange rates H1 2013 H1 2014 BRL (Brazil) 2.67 3.15 CHF (Switzerland) 1.23 1.22 2014 HALF YEAR RESULTS 30 July 30th, 2014