Ceconomy Ag · XETR:CEC
Ceconomy — Ceconomy Ag Ord — Q1 2020 Earnings Presentation
32 slides from Ceconomy's earnings presentation, Feb 7, 2020
Slide 1: Q1 2019/20 Results Presentation
Q1 2019/20 RESULTS PRESENTATION Dr Bernhard Düttmann, Karin Sonnenmoser Düsseldorf, 07 February 2020
Slide 2: Disclaimer and Notes
DISCLAIMER the actions of public authorities and other third parties, many of Such financial information is not necessarily indicative for the which are beyond our control, that could cause actual results, operational results, the financial position and/or the cash flow of the performance or financi
Slide 3: Agenda
Agenda 01 02 03 Highlights Financial Outlook Performance
Slide 4: Highlights
01 Highlights Date: 07 February 2020 // 4
Slide 5: CECONOMY's Q1 19/20 in a nutshell
CECONOMY’s Q1 19/20 in a nutshell Successful Black Friday period, both in-store and Christmas business impacted by pull-forward effects online due to increasing importance of Black Friday Adverse macro conditions and intense competition Solid growth rates in Online and Services & Solutions in Southe
Slide 6: In Q1 we built the foundation for a sound financial year 19/20
In Q1 we built the foundation for a sound financial year 19/20 –0.5% 289 €m Sales change yoy Adj. EBIT1,2 adjusted for fx-effects and excl. associates3 portfolio changes +20 €m vs. PY Note: 1 Adjusted EBIT before non-recurring earnings effects in connection with the reorganization and efficiency pro
Slide 7: We continued the success of last year and built again a profitable Black Friday
We continued the success of last year and built again a profitable Black Friday Centrally prepared and orchestrated New MediaMarkt web platform handling campaign concepts for entire group supported double traffic, improved delivery performance by professional toolkit and improved availability of off
Slide 8: Solid double-digit sales growth rates in-store and online
After an already strong prior year, we generated solid double-digit sales growth rates in-store and online +1,000k +15% +2% More items sold during 5-day Black More online shoppers visited our More customers visited our stores Friday period vs. PY websites vs. PY vs. PY Note: Figures for 5-day Black
Slide 9: Attractive bundles increased attachment rates during Black Friday
Attractive bundles increased attachment rates during Black Friday, driving smartphone, computer hardware and GSM accessories sales Countries were well prepared to meet high stationary and online traffic (e.g. partly pre-configurated Ready-To-Use items) Ready-To-Use Ready-To-Use notebooks Screen Many
Slide 10: Financial Performance
02 Financial Performance Date: 07 February 2020 // 10
Slide 11: Fx- and portfolio adjusted sales nearly on prior-year's level
Fx- and portfolio adjusted sales1 nearly on prior-year’s level (excl. iBood) Q1 Total sales fx- and portfolio adj.1 Q1 Highlights (in €m) –0.5% –0.8% Fx- and portfolio adjusted1 sales excl. iBood nearly on PY’s level (–0.2%) 6,879 6,821 DACH: Germany with strong Black Friday, but offset by softe
Slide 12: Online and Services & Solutions are the key growth drivers
Online and Services & Solutions are the key growth drivers Q1 Online sales1 Q1 Highlights (in €m) +4.3% Online1 growth +5.9% excl. iBood 1,000 1,043 "Black Friday" campaigns with particularly positive effect on online business 14.7% in % of sales 15.4% Online business impacted by high comps Q1
Slide 13: Solid operational EBIT improvement driven by Services & Solutions and cost savings
Solid operational EBIT improvement mainly driven by Services & Solutions and cost savings Q1 Gross margin1,2 (in % of sales) OPEX1,2,3 (in % of sales) Q1 Highlights –0.1%p. –0.5%p. Gross margin with trend improvement, cost savings in PEX and indirect spend 18.4% 18.3% 15.3% 14.8% DACH: Strong pe
Slide 14: Reported EBIT benefited from one-time effect related to Greek transaction
Reported EBIT benefited predominantly from positive one-time effect related to Greek transaction Q1 Adj. EBIT1,2 excl. associates to reported EBIT (in €m) 319 -1 30 289 − Operational result Greece − Regular Fnac + Transaction- Darty D&A related effect component Greece − Expected trailing restructuri
Slide 15: EPS improvement driven by higher earnings and lower tax rate
EPS improvement mainly driven by higher earnings and lower tax rate €m Q1 2018/19 Q1 2019/20 Change Q1 Highlights EBITDA 291 509 218 Reported EBITDA includes c. 138 €m IFRS 16 effect EBIT 234 319 84 Reported EBIT includes c. 2 €m IFRS 16 effect Net financial result 1 9 8 Reported earnings in C
Slide 16: Adjusted Free Cash Flow below prior-year's level
Adjusted Free Cash Flow below prior-year’s level mainly due to restructuring-related cash outflows and higher cash taxes Q1 2019/20: Free Cash Flow (in €m) Q1 Highlights 1,119 1,421 Change in NWC improved slightly due to -29 1,272 -105 -74 higher increase in trade payables, mainly -149 resulting f
Slide 17: Outlook
03 Outlook Date: 07 February 2020 // 17
Slide 18: Outlook for FY 19/20 confirmed
Outlook for FY 19/20 confirmed Adjusted for portfolio changes Excluding non-recurring earnings effects in connection with the reorganization and efficiency program announced on 29 April 2019 FY 19/20 thereof IFRS 16 incl. IFRS 16 effect Fx-adjusted sales Slight increase EBIT (excl. associates) 4
Slide 19: In Q1 2019/20 we focused on a profitable Black Friday period
In Q1 2019/20 we focused on a profitable Black Friday period and further executed our initiatives 1 2 3 4 Progressed on Profitable Black Significant cost Encouraging strategic initiatives Friday period, optimization, group earnings with promising in-store and online esp. in Germany improvement resul
Slide 20: Strategy Update
26 MARCH 2020 10 AM – 2 PM STRATEGY UPDATE CECONOMY HQ DÜSSELDORF
Slide 21: Q&A
Q&A Dr Bernhard Düttmann Karin Sonnenmoser Chief Executive Officer Chief Financial Officer CECONOMY AG CECONOMY AG Results Presentation Q1 2019/20 Public Date: 07 February 2020 // 21
Slide 22: Contact
CECONOMY AG Investor Relations CONTACT Kaistr. 3 40221 Düsseldorf Germany Tel.: +49 (211) 5408-7222 Email: IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/ Date: 07 February 2020 // 22
Slide 23: Notes
Notes All numbers in the presentation incl. IFRS 16 (unless otherwise stated) The disposal of the Greek MediaMarkt business is treated as a portfolio effect Forecast-relevant EBIT is adjusted for portfolio effects and non-recurring earnings effects in connection with the reorganization and eff
Slide 24: IFRS 16 effects on EBITDA and EBIT
IFRS 16 effects on EBITDA and EBIT Adjusted EBITDA1,2 Adjusted EBITDA1,2 IFRS 16 effect including IFRS 16 €m Q1 18/19 Q1 19/20 Q1 19/20 DACH 228 356 80 Western/Southern Europe 87 111 44 Eastern Europe 20 23 12 Others3 –11 –11 2 Total 325 479 138 Adjusted EBIT1,2 Adjusted EBIT1,2 IFRS 16 effect inclu
Slide 25: Store network as of 31 December 2019
Store network as of 31 December 2019 30/09/2019 Openings Closures 31/12/2019 Highlights Germany 431 – –2 429 Austria 52 – – 52 Selective expansion with 1 store opening in the Switzerland 26 – – 26 Netherlands Hungary 32 – – 32 DACH 541 – –2 539 Belgium 27 – – 27 2 store closures in Germany Greec
Slide 26: Net Working Capital
Net Working Capital1 €m 30/09/2018 31/12/2018 Change 30/09/2019 31/12/2019 Change Inventories 2,480 3,229 749 2,548 3,348 801 Trade receivables and other receivables 610 579 –32 455 543 87 Receivables due from suppliers 1,241 1,789 549 1,295 1,851 556 Trade payables and other payables –5,745 –8,136
Slide 27: New simplified NWC definition
New simplified NWC definition as of Q1 2019/20 with all items easily readable from balance sheet positions Old NWC definition New NWC definition Inventories Inventories Receivables due from suppliers Receivables due from suppliers Assets Trade receivables Trade receivables and other receivables Rece
Slide 28: Comparison of new vs old NWC definitions
Comparison of new vs old NWC definitions €m 30/09/2018 30/09/2019 Inventories 2,480 2,548 NWC becomes easily readable Trade receivables and similar claims 613 417 from balance sheet positions Receivables due from suppliers 1,239 1,295 Receivables from credit cards 71 51 Advance payments on invento
Slide 29: IFRS 16 applied as of 1 October 2019 - estimated P&L impact
IFRS 16 applied as of 1 October 2019 - estimated P&L impact in FY 19/20 ESTIMATED EFFECT 1 Leasing expenses Decrease by 525-565 €m as leasing expenses are recognized as D&A and interest cost EBITDA Increase by 525-565 €m equalling the amount of leasing expenses D&A Increase by 515-555 €m due to depr
Slide 30: IFRS 16 estimated balance sheet and cash flow impact
IFRS 16 applied as of 1 October 2019 - estimated balance sheet and cash flow impact in FY 19/20 ESTIMATED EFFECT 1 Assets Increase by around 2.3 €bn due to recognition of lease contracts as rights of use assets Liabilities Increase by around 2.4 €bn due to recognition of lease contracts as lease lia
Slide 31: Financial calendar and events
Financial calendar and events Financial calendar Annual General Meeting 12 February 2020 Capital Markets Day 26 March 2020 Q2/H1 2019/20 results 14 May 2020 Q3/9M 2019/20 results 13 August 2020 Q4/FY 2019/20 trading statement 23 October 2020 FY 2019/20 results 15 December 2020 Upcoming events Roadsh
Slide 32: Date: 07 February 2020
Date: 07 February 2020 // 32