Cnova NV — H1 2023 Earnings Presentation
27 slides from Cnova NV's earnings presentation, Aug 1, 2023
Slide 1: First Half 2023 Activity & Financial Performance
FIRST HALF 2023 ACTIVITY & FINANCIAL PERFORMANCE INVESTOR PRESENTATION
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. Such forward-looking statements may generally be identified by, but not limited to, words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,”
Slide 3: Business Highlights & Key Figures
BUSINESS HIGHLIGHTS & KEY FIGURES discount
Slide 4: In a challenging & uncertain context...
ng market In a challenging & uncertain context... . Ecommerce trends Liquidity uncertainty Macroeconomic trends . . . . High inflation Decreasing High Tech and Domestic Appliances Casino buy out offer, July 15th High taint categories Agreement in Principle, July 27" igh uncertainty Strong market sha
Slide 5: Resilient Ecommerce Platform
RESILIENT ECOMMERCE PLATFORM discount
Slide 6: Marketplace
Marketplace Marketplace long-term trends remain dynamic in a Marketplace GMV growing +6% annually on a LT trend Marketplace share increasing +4pts per year on a LT trend inێm in % of total CAGR ; +6% 747 676 - 668 647 42.7% 562 38.3% 505 | | | || 1H17 1H18 1H19 1H20 1H21 1H22 1H23 1H17 1H18 1H19 1H
Slide 7: Marketplace
Marketplace Marketplace revenues growing 4pts faster than marketplace GMV over the last 6 years Marketplace revenues! growing +10% annually Key drivers are accelera @D © @ @ @ @ * oe Effective sellers +18% CAGR Ww sourcing generating —1H23 newsellers GMV rowth and revenues generation vs. 1H22 new +1
Slide 8: Advertising services revenue growth
QOOQODlD Inێm & CAGR +32% 33 35 29 +16% CAGR 20 17 16 +75% 7 CAGR 1H17 1H18 1H19 1H20 1H21 1H22 1H23 =Brands_ mSellers Advertising services revenue growth A success for Cdiscount and for our merchants Q Advertising services growing by +5% vs. 22, mainly driven by Retail Media RETAIL MEDIA Growing }
Slide 9: Direct Sales
Direct Sales Direct sales benefiting from strengthened relationship with top brands on technical goods Focus on Top 10 brands Focus on profitable SKUs Enhanced F Rationalized 1P Enhanced GMV Enhanced advertising | assortment performance clients’ loyalty services “Try Divided by 2 vs. 22 +8pts GMV Cl
Slide 10: B2C services
B2C services In a context of strong inflation, travel business has significantly grown Travel GMV evolution Travel activity grew by +16% YTD Iin€m 65 FULL SITE 56 Bon de réduction Pepin ~ 2810 7 Trave l SEJOUR PETITS PRIX Espagne, Gréce, Turquie Vol + Hétel tout compris par pe byCdiscount-Veyages |
Slide 11: Artificial intelligence
Artificial intelligence Improve the customer-centric approach with Generative Al-powered algorithms Improved product content quality Chatbot powered by Generative Al (ChatGPT) 2 Partnership . : with a Ee = = * @iadvi * iAdvize [ory to Q Thanks to GPT and Al-powered algorithms: Q 70% satisfaction rat
Slide 12: B2B Activities
B2B ACTIVITIES discount
Slide 13: C-Logistics B2B revenues multiplied by x8
foal Melel[iale] C-Logistics B2B revenues multiplied by x8 in 1H23 vs. 22 Q Increase in the number of shipped parcels for external clients (x6 vs. 22) Q 1client launched in 1H23 and 1 on-going client implementation with a targeted launch in early 2024 = Successful launch in February 2023 and acceler
Slide 14: Octopia accelerates its commercial development
B2B Acti ies Octopia accelerates its commercial development cctopia Octopia B2B revenues accelerating by +43% in 1H23 vs. 22 © Access to a turnkey marketplace platform © Access to fulfilment solutions Marketplace-as-a-Service and Merchants-as- Fulfilment-as-a-Service revenues: +36% vs. 22, Service r
Slide 15: ESG
ESG discount
Slide 16: ESG
ESG A more sustainable e-commerce to our customers: focus on sustainable products Strong growth of sustainable products GMV share Develop partnerships on second-hand products As a % of GMV ‘i . Sao = 800+ active marketplace sellers in 1H23 » Internal refurbishment factory for phones to Ga handle cus
Slide 17: Half-Year 2023 Financial Performance
HALF-YEAR 2023 FINANCIAL PERFORMANCE discount
Slide 18: GMV Half-Year performance
2023 Half-year Financial performance GMV Half-Year performance Direct sales Marketplace 647 668 om B2C __ Services! 80 150 (46)% +21% 1H23 Advertising services 42 40 +5% GMV Others! 104 197 (47)% = performance C-Logistics! 7 1 x8 B28 Total 37 49 (26)% Octopia o/w B2B Revenues 1 8 +43% o/w Retail & O
Slide 19: Gross margin Half-Year performance
2023 Half-year Financial performance Gross margin Half-Year performance driven by the resilient performance of marketplace and advertising As a % of net sales, in€m = Direct sales: decrease in volumes due to the voluntary shift towards marketplace with a focus on SKUs with the most Cdiscount favorab
Slide 20: SG&A (excl. D&A) Half-Year performance
2023 Half-year Financial performance SG&A (excl. D&A) Half-Year performance with significant impact from Efficiency plan with €35m savings SG&A (excl. D&A) SG&A (excluding D&A) improving by €35m vs. 22 (in€m) Fulfilment: €(15)m vs. 22 % of <~covid > 119.3)% yoy v Lower volumes in 1H23 | ; Net €(35)m
Slide 21: EBITDA Half-Year performance
2023 Half-year Financial performance EBITDA Half-Year performance: a doubling EBITDA between HY22 and HY23 €18m 1.8% €15m 1.7% €34m 5.5% 1H19 1H22 1H23 x2.3 increase in EBITDA, at 5.5% of Net sales (+3.9pts vs. 22) = Net sales y-o-y change: €(262)m v¥ Amid a challenging market, direct sales and mark
Slide 22: EBITDA to Net Loss
2023 Half-year Financial performance EBITDA to Net Loss ge: a +€22m increase in Profit Before Tax between HY22 and HY23 a Ee EBITDA 18.0... 14.6 33.9 +19m = EBIT still impacted by high capex in 2021/2022 As % of Net sales 18%... 1.7% 5.5% +3,9pts . Daa B19). (48.2) (48.2) = Other products & charges
Slide 23: Structural free cash-flows improving
2023 Half-year Financial performance Structural free Cash-flows improving by +€25m excluding one-offs EBITDA 419.3 (-) IFRS 16 rents (17.8) (17.7) +0.1 (+/-) Change in working capital (66.7) (169.8) (103.1) (-) Income taxes paid (1.8) (1.7) +0.1 (-) Capital expenditures (47.6) (32.3) +15.4 (+) Cash
Slide 24: Net financial debt breakdown and maturity
2023 Half-year Financial performance Net financial debt breakdown and maturity | Debt breakdown Max Term 20 4 Term loan with Casino €300m = =2026 4s = 62 Current account Casino €400m 2026 State Guaranteed loan (SGL) €60m 2026 || Bank overdrafts €70m 2 months 582 Other OWC financing €35m na. Total li
Slide 25: Efficiency Plan
EFFICIENCY PLAN discount
Slide 26: A €90m Efficiency plan launched since 2Q22
Efficiency plan A €90m Efficiency plan launched since 2Q22 to recalibrate SG&A & CAPEX Capital expenditures Warehouse capacity Key levers FTEs rationalization Focus on UX, Al, Cdiscount Advertising and Marketplace Octopia investment rationalization Adapt warehouses capacities to business levels Rene
Slide 27: Q&A
Q&A discount