Slide 1: Results Presentation Q3/9M 2018/19
Results Q3/9M Presentation 2018/19 Jörn Werner Düsseldorf, 13 August 2019 Karin Sonnenmoser
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 Highlights 02 Financial Performance 03 Outlook 04 Strategic Update
Slide 4: Highlights
01 Highlights Jörn Werner, CEO Date: 13 Aug 2019 // 4
Slide 5: MediaMarktSaturn and Olympia Group create new company in Greece
CECONOMY’s majority shareholding MediaMarktSaturn and Olympia Group create a new company with a 25%/75% shareholding in Greece Target structure Highlights CECONOMY’s majority shareholding MediaMarktSaturn and Olympia Group have signed a deal to create a new company in Greece and Cyprus 78.38% Tr
Slide 6: A sustainable solution for Greek MediaMarkt activities
We have found a sustainable solution for our Greek MediaMarkt activities and gain an immediate scale advantage Further optimizing CECONOMY’s portfolio Closing the gap to the market leader In line with “Lead or Leave” principle With an estimated share of c. 14%1 at eye level with the market leade
Slide 7: Solid results in Q3 despite lower gross margin
Solid results in Q3, despite facing a lower gross margin which was partly compensated by operational cost savings Slight fx-adjusted sales growth despite Online and Services & Solutions growth strong World Cup campaigns in PY impacted by strong GSM campaigns in PY Germany again with sound operationa
Slide 8: Q3 performance supports achievement of full-year targets
Q3 performance supports achievement of full-year targets +0.2% –628 €m Positive Change in NWC sales development in –646 €m DACH and W.&S. Europe lower than PY fx-adjusted in 9M 10 €m –45 €m Adj. EBITDA* Adj. EBIT* excl. Fnac Darty excl. Fnac Darty –16 €m below PY –15 €m below PY *Adjusted EBIT/DA ex
Slide 9: Financial Performance
02 Financial Performance Karin Sonnenmoser, CFO Date: 13 Aug 2019 // 9
Slide 10: Slight sales increase driven by DACH and Western & Southern Europe
Slight sales increase driven by DACH and Western & Southern Europe Total sales (in €m) fx-adjusted +0.2% Highlights -0.5% Overall market share gains per 9M 4,586 4,565 DACH: Successful VAT campaign in Germany and Easter business offset strong World Cup campaigns in PY; Switzerland impacted by st
Slide 11: Online and Services & Solutions impacted by strong campaigns in PY
Online and Services & Solutions impacted by strong campaigns in PY Online Sales (in €m) Highlights In % of sales 12.7% 13.0% Slower online growth, esp. in Germany, mainly +1.7% due to strong GSM mobile campaigns in PY and 584 594 reduced free shipping offers Online LTM accounted for 13.6% of tot
Slide 12: Lower gross margin and non-recurring items in PY
Lower gross margin and high level of non-recurring items in PY partly compensated by positive operational cost development Gross margin Adj. EBIT* excl. Fnac Darty Highlights (in €m) -1.6%p. DACH: EBIT excl. non-recurring items in -15 Germany above PY, supported especially by 20.3% 18.7% optimizat
Slide 13: Adjusted EBIT below PY as expected
Adjusted EBIT below PY as expected; restructuring-related expenses weigh on reported earnings EBIT excl. Fnac Darty (in €m) -29 -15 -45 + Operational cost reductions − Weak gross margin development -80 − High level of non- recurring items in PY -125 EBIT Q3 17/18 Yoy change Adj. EBIT Q3 18/19 Restru
Slide 14: EPS negatively impacted by restructuring-related expenses
EPS negatively impacted by restructuring-related expenses, partly offset by positive impact from METRO transaction €m Q3 17/18 Q3 18/19 Change Highlights EBITDA 26 –69 –95 Reported EBIT impacted by 80 €m restructuring-related expenses EBIT –30 –126 –95 Net financial result –154 12 166 Net financ
Slide 15: Free Cash Flow impacted by expected NWC outflow
Free Cash Flow impacted by expected NWC outflow mainly due to high starting point on 30 September 2018 and active cash management 9M 18/19: Free Cash Flow (in €m) Highlights 305 Change in NWC –646 €m lower than PY, mainly driven by anticipated decline in trade payables due to a high starting point
Slide 16: Outlook
03 Outlook Karin Sonnenmoser, CFO Date: 13 Aug 2019 // 16
Slide 17: Outlook for FY 18/19 confirmed
Outlook for FY 18/19 confirmed Adjusted for exchange rate effects and before portfolio changes Excludes expenses in connection with the reorganization and efficiency program Excludes expenses for already announced management changes in top management €m FY 17/18 FY 18/19 Total sales 21,418 Sli
Slide 18: Strategic Update
04 Strategic Update Jörn Werner, CEO Date: 13 Aug 2019 // 18
Slide 19: Reorganization and Efficiency Program is on track
The Reorganization and Efficiency Program is on track, we have reached an agreement and are now executing the next steps April May June July August … Communication Information Consultation & Negotiation Execution Definition of target Internal & external Consultations and structure and communication
Slide 20: Progress on streamlining central functions and portfolio optimization
We have made progress regarding the streamlining of central functions and the optimization of our operational entities portfolio Reorganization & Efficiency Program Central Functions Portfolio One function responsible for CECO & MMSRG Sustainable solution with Public in Greece Completed manage
Slide 21: Executing the transformation and setting the course for the future
The recent developments emphasize the importance of executing the transformation and setting the course for the future Fixing the basics Simplifying the corporate structure Transforming the business with a customer-centric approach Results Presentation Q3/9M 2018/19 Public Date: 13 Aug 2019 // 21
Slide 22: Q&A
Q&A Joern Werner Karin Sonnenmoser Chief Executive Officer Chief Financial Officer Results Presentation Q3/9M 2018/19 Public Date: 13 Aug 2019 // 22
Slide 23: Contact
CECONOMY AG Investor Relations Benrather Strasse 18-20 CONTACT 40213 Düsseldorf Germany Tel.: +49 (211) 5408-7222 Email: IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/ Date: 13 Aug 2019 // 23
Slide 24: Store network
Store network 31/03/2019 Openings Closures 30/06/2019 Highlights Germany 432 0 –1 431 Austria 52 0 0 52 Selective expansion with 11 openings: 2 stores Switzerland 26 0 0 26 in Turkey and 1 each in Italy and Poland + Hungary 25 7 0 32 7 Shop-in-Shops with Tesco in Hungary DACH 535 7 –1 541 Belgium
Slide 25: Net Working Capital
Net Working Capital €m 30/09/20171 30/06/2018 Change 30/09/2018 30/06/20192 Change Inventories 2,449 2,819 371 2,480 2,802 322 Trade receivables 497 545 48 613 493 –120 Receivables due from suppliers 1,197 1,102 –95 1,239 1,157 –82 Receivables from credit cards 66 57 –9 71 77 5 Advance payments on i
Slide 26: IFRS 9 and 15 accounting changes
IFRS 9 and 15 accounting changes The IFRS 9 accounting change will reduce the Financial Impact1 impairment requirement for the receivables portfolio According to an impact analysis no material Not material IFRS 9 impact expected Financial Instruments Effective: 1 Oct. 2018 IFRS 15 related chan
Slide 27: Financial calendar and events
Financial calendar and events Financial calendar Q4/FY 2018/19 trading statement 24 October 2019 FY 2018/19 results 17 December 2019 Upcoming events Roadshow Frankfurt 14 August 2019 Commerzbank Sector Conference (IR only) 29 August 2019 Roadshow US & GS Global Retailing Conference 3-5 September 201
Slide 28: Results Presentation Q3/9M 2018/19 Public Date: 13 Aug 2019
Results Presentation Q3/9M 2018/19 Public Date: 13 Aug 2019 // 28