Cnova NV — FY2017 Earnings Presentation
29 slides from Cnova NV's earnings presentation, Feb 20, 2018
Slide 1: Cnova 2017 Financial Results Conference Call
Cnova 2017 Financial Results Conference Call February 20, 2017
Slide 2: Disclaimer
Disclaimer 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,” “poten
Slide 3: Agenda
Agenda 2017 Key Business Highlights Strategic Priorities 2017 Financial Results Outlook 3
Slide 4: Summary of 2017 Achievements
2017 Key Business Highlights Summary of 2017 Achievements An ambitious strategy resulting in strong investments to improve customer experience 1 2 3 4 Increase of Cdiscount Strong investments Multichannel Improved seamless product assortment in technology and development customer experience (x3) log
Slide 5: Agenda
Agenda 2017 Key Business Highlights Strategic Priorities 2017 Financial Results Outlook 5
Slide 6: Key strategic priorities
Key strategic priorities 1 2 3 4 Enhanced Best Offer Increased Customer Innovation & Best Services Monetization Experience Cdiscount, Leading French e-merchant 6
Slide 7: Strategic Priorities: Best Offer & Best Services
Agenda Strategic Priorities Best Offer & Best Services Enhanced Customer Experience Increased Monetization Innovation 7
Slide 8: 37m Product Offerings to Address All Customer Needs
37m Product Offerings to Address All Customer Needs Cdiscount product assortment in 2017 1 Reinforce Technical goods Daily Products market leading position Online Market share > 30% Family & Leisure Hi-tech 2 Revamp Home categories x4 in Furniture & Deco SKUs covering all styles, trends & prices 3 A
Slide 9: The Fast Delivery Specialist
The Fast Delivery Specialist Same-day delivery x3 SKUs eligible up to more than 250k Objective: 8 major French cities by end 2018 covering nearly half of the population living in cities of more than 10,000 inhabitants Real-time geolocation on large orders First player to offer this service in
Slide 10: Launching Unique and Unmatched Services
Launching 3 Unique and Unmatched Services Coup de pouce Instant consumer credit offer, a two-click journey Express option to receive the money within 24 hours Strong commercial success 2017 Cdiscount Energie Same electricity but 15%* cheaper Rapid online subscription in less than 5min Ex
Slide 11: Strategic Priorities: Enhanced Customer Experience
Agenda Strategic Priorities Best Offer & Best Services Enhanced Customer Experience Increased Monetization Innovation 11
Slide 12: Sites and Apps Revamp for the Best Customer Experience
Sites and Apps Revamp for the Best Customer Experience Mobile Highlights in 2017 Best-in-class technologies to meet with growing mobile e-commerce 59% of trafic +645 bp y-o-y 2nd fastest e-commerce mobile site* Top rated app in Apple store with 4.5/5 based on nearly 60,000 reviews Chatbots, Vo
Slide 13: Multichannel Strategy: Bringing our Customers to Us
Multichannel Strategy: Bringing our Customers to Us Cdiscount showrooms Around 700 SKUs in more than 400 sqm with: ‒ Dedicated floor space to Home Furnishing ‒ Best deals offers ‒ A corner for Technical goods Interactive customer terminals 2017: 4 openings 2018: 6 additional showrooms Cdiscount
Slide 14: Increasing Number of Loyal and Engaged Customers
Increasing Number of Loyal and Engaged Customers Our loyalty program Cdiscount-à-volonté A loyal and growing CDAV customer base 31% GMV share in 2017 CDAV customers purchase on average 3x more frequently than non-CDAV customers +48% members y-o-y at end December A strong social media profile L
Slide 15: Strategic Priorities: Increased Monetization
Agenda Strategic Priorities Best Offer & Best Services Enhanced Customer Experience Increased Monetization Innovation 15
Slide 16: Expanding Services to Marketplace Vendors
Expanding Services to Marketplace Vendors Marketplace Ecosystem A complete Marketplace ecosystem Fulfilment by Cdiscount (FBC): GMV share and number of SKUs doubled vs 2016 LOGISTICS Transportation services: ‒ Unique interface to access all carriers ‒ Competitive pricing ‒ Parcel tracking Mark
Slide 17: Data to Create More Value
Data to Create More Value A unique customer knowledge 40 millions e-shopper cookies thanks to Cdiscount and e-commerce partners 1,000+ customer segments generated by in-house algorithms Data-driven advertising campaigns Example of data driven ads on Cdiscount websites and other platforms Targe
Slide 18: Strategic Priorities: Innovation
Agenda Strategic Priorities Best Offer & Best Services Enhanced Customer Experience Increased Monetization Innovation 18
Slide 19: Innovation at the Heart of our Strategy
Innovation at the Heart of our Strategy Promoting a culture of innovation Screening 800 startups 52 POCs (Proof of Concept) launched in 2017 2/3 of tested projects industrialized Launch of the logistics incubator the Warehouse Co-working space in a dedicated warehouse 4 startups selected
Slide 20: Agenda
Agenda 2017 Key Business Highlights Strategic Priorities 2017 Financial Results Outlook 20
Slide 21: Key Indicators
2017 Financial results Key Indicators Traffic 946 million Mobile share of traffic: +645 bp to 59.5% in FY17 Acceleration in 2H17 with +13.2% vs +11.5% in 1H17 (+12.4% vs. FY16) Cdiscount ranks 2nd among e-retailers in France with 18m UMV1 € 3.4 Increase in 2H17 l-f-l2 growth at +10.8% 21 GMV
Slide 22: Key Financial Indicators
2017 Financial results Key Financial Indicators Cnova N.V. Key Figures1 2017 2016 € in millions Net sales 2,122 1,856 Gross profit 289 255 2 Gross margin 13.6% 13.8% SG&A3 (312) (258) Operating EBIT4 (23) (3) 5 EBITDA 4 18 Cdiscount 9 25 Net profit/(loss) (Continuing operations) (92) (65) Adjusted E
Slide 23: Net Sales & EBITDA
2017 Financial results Net Sales & EBITDA Net sales EBITDA (€ million, y-o-y growth) (% of net sales, € million) 2016 2017 +14.4% 2,122 Cnova 17.7 1,856 (€ million) 3.6 Margin 1 +1.0% 2 +0.2% Cdiscount (€ million) 25.1 9.1 Margin 1 +1.4% 2 +0.4% 2016 2017 Net sales up +9.3% l-f-l (+14.4% on a repo
Slide 24: Sequential improvement in EBITDA performance
2017 Financial results Sequential improvement in EBITDA performance Cnova quarterly EBITDA evolution (€ million) 6.6 6.7 4.0 4.2 3.0 1.9 -0,1 -4.9 2016 2017 1Q 2Q 3Q 4Q Strong investment with the strategic plan implementation and the costs associated Initial negative impact on 1H17 EBITDA at Cno
Slide 25: Net Debt Evolution
2017 Financial Results Net Debt Evolution 1H17: strong investment, reflecting mainly the one-off impact of the strategic plan implementation • Working capital outflow of €(336) million, impacted by SKUs expansion, multichannel strategy (agreement with Casino) and seasonality, • Capex of €(22) mill
Slide 26: Agenda
Agenda 2017 Key Business Highlights Strategic Priorities 2017 Financial Results Outlook 26
Slide 27: Strategic Outlook
Outlook Strategic Outlook In 2018 Cnova plans to accelerate the implementation of its strategic plan to offer the best on- and offline customer experience and reinforce its market positions through 4 main pillars: 1 Offer the best Reinforce leadership in large products, benefiting from fast delive
Slide 28: Thank you for your attention!
Thank you for your attention!
Slide 29: Net Debt Evolution compared to December 31, 2016
APPENDIX Net Debt Evolution compared to December 31, 2016 Net debt bridge (in € million, twelve months) Other cash +4 Items Change in EBITDA Working Capital (27) 178 Net cash 31.12.2016 Capex Free Cash Flow (193) (244) discontinued Interest paid +7 Other net (69) (2) (40) Net debt Free Cash Flow con