Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (June 2021)
47 slides from Fnac Darty Sa's investor presentation, June 2021
Slide 1: ISR Presentation 2021
ISR PRESENTATION 2021 June 2021
Slide 2: Contents
CONTENTS Group Presentation & Strategy 3 – 14 A Solid Governance 15 - 20 Fnac Darty’s CSR Strategy 21 - 35 Finance 36 - 46 2
Slide 3: Group Presentation & Strategy
GROUP PRESENTATION & STRATEGY 3
Slide 4: Fnac Darty at a Glance
FNAC DARTY AT A GLANCE A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM 2020 revenue breakdown by category • €7.5bn in revenue – c.25,000 employees Technical products 49,5% • Top 3 European Omnichannel Retailer: Editorial products 15,5% • 30 million references availabl
Slide 5: Two iconic brands with responsible values in their DNA
FNAC DARTY, TWO ICONIC BRANDS WITH RESPONSIBLE VALUES IN THEIR DNA INDEPENDENT EXPERTISE RESPONSIBLE PRODUCTS AND CUSTOMERS’ ADVICE AND SERVICES Give access to culture Strong services offer for repair, re-use and product recycling Independent vendors to give best advice for an educated purchase #1 a
Slide 6: A responsible retailer recognized by external ESG organisations
A RESPONSIBLE RETAILER RECOGNIZED BY EXTERNAL ESG ORGANISATIONS 44 2020 100 • Top 20% worldwide (rank in Universe: 529 / 4,846) Information rate of 88% • Rank in Sector 9 / 73 (vs. 11/76 in 2019) • Information rate of 91% OUTPERFORMER AVERAGE PERFORMER 13 7,9 68 AA 38 out 2020 61 of 136 out of AA 7.
Slide 7: Our next transformation driven by our raison d'être
OUR NEXT TRANSFORMATION WILL BE DRIVEN BY OUR POWERFUL GROUP RAISON D’ÊTRE Since 2018, Fnac Darty has adopted a corporate raison d’être COMMIT TO AN EDUCATED CHOICE AND A SUSTAINABLE CONSUMPTION At a time of hyperchoice and consumer expectations for more responsible consumption, this mission aims to
Slide 8: CSR related ambitions in our new strategic plan
3 CSR RELATED AMBITIONS IN OUR NEW STRATEGIC PLAN, EVERYDAY, INCLUDING 1 CLEARLY STATED CSR PILLAR HOW DO WE COMMIT TO AN EDUCATED CHOICE AND A SUSTAINABLE CONSUMPTION, EVERYDAY? Build a digitized omnichannel retail Lead durable Scale the next in-home subscription-based behaviors assistance service
Slide 9: Our 5-pillar CSR strategy
OUR 5-PILLAR CSR STRATEGY 1 2 5 4 3 9
Slide 10: CSR objectives also included in our financing strategy
CSR OBJECTIVES ALSO INCLUDED IN OUR FINANCING STRATEGY In our new financing strategy launched in March 2021, we have extended our RCF line of credit to €500 million maturing maximum in 2028 with a CSR component that will permit the Group to improve its financing terms if the designated targets are a
Slide 11: Our strategy and commitments meets business challenges & opportunities
OUR STRATEGY AND COMMITMENTS MEETS BUSINESS CHALLENGES & OPPORTUNITIES CONSUMERS’ EXPECTATIONS FNAC DARTY STRATEGY FNAC DARTY CSR COMMITMENTS • CONTRIBUTION TO THE LOCAL ECONOMY, BEST IN CLASS CULTURAL AND SOCIAL LIFE THROUGH FNAC AGILITY / PROXIMITY DARTY OMNICHANNEL PLATEFORM OMNICHANNEL EXPERIENC
Slide 12: Our CSR related ambitions will help achieve our financial objectives
OUR CSR RELATED AMBITIONS WILL HELP US TO ACHIEVE OUR FINANCIAL OBJECTIVES Everyday ambitions ESG related objectives Business value added Financial objectives by 2025 by 2025 Build a digitized 50% of online sales will be Favor C&C, less environmental omnichannel retail Click & Collect impacting,
Slide 13: Fnac Darty profile in 2025: financial and extra-financial ambitions
FNAC DARTY PROFILE IN 2025: FINANCIAL AND EXTRA- FINANCIAL AMBITIONS ESG AMBITIONS 135 -50% +50% 35% “Durability score” Transport & energy CO2 Products repaired in 20252 Of women in Top 200 by 20251 emissions in 2030 vs 2019 vs. 2019 to reach c. 2.5M managers of the Group BUSINESS & FINANCE AMBITION
Slide 14: A business model that creates sustainable value for stakeholders
A BUSINESS MODEL THAT CREATES SUSTAINABLE VALUE FOR OUR STAKEHOLDERS • CLIENTS: services, independent • Committed human advice and diversified product capital offerings • EMPLOYEES: training, quality of • A strong financial life at work and professional position equality • PARTNERS: a sustainable •
Slide 15: A Solid Governance
A SOLID GOVERNANCE Vf y FNAC DARTY “ff
Slide 16: A solid and stable board of directors
A SOLID AND STABLE BOARD OF DIRECTORS… 79% of independent members 43% of female members 2 employees Directors 4 committees chaired by independent Directors of which: Audit Committee Appointments and Compensation Committee Strategy Committee Corporate, Environmental and Social Responsibility
Slide 17: Diverse experiences and skills supporting long-term value creation
… WITH STRONG, DIVERSE AND MIX EXPERIENCES AND SKILLS THAT SUPPORT LONG-TERM VALUE CREATION 17
Slide 18: A qualified and experienced executive team
A QUALIFIED AND EXPERIENCED EXECUTIVE TEAM FULLY DEDICATED TO THE NEW STRATEGIC PLAN ENRIQUE MARTINEZ CHIEF EXECUTIVE OFFICER of Fnac Darty 38% of female members More than 20 years at Fnac Darty in various positions of responsability 13 members Member of the Executive Committee since 2004 BENOÎT
Slide 19: Governance that strengthens the integration of CSR challenges
GOVERNANCE THAT STRENGTHENS THE INTEGRATION OF CSR CHALLENGES A Corporate, Environmental and Social Responsibility Committee has been created at Board level since 2013 CSR is overseen by the General Counsel in charge of CSR and Governance, a member of the Executive Committee The Ethics Committee (20
Slide 20: CSR also included in remuneration policy
CSR ALSO INCLUDED IN REMUNERATION POLICY 10% of the total bonus of the Executive Committee members is related to CSR objectives, 5% of which to the Group's extra-financial rating Continued to strengthen the integration of CSR criteria in the variable compensation with 10% of the bonus of all Group m
Slide 21: Fnac Darty CSR Strategy
FNAC DARTY CSR STRATEGY 21
Slide 22: Major key risks identified by a materiality analysis
4 MAJOR KEY RISKS, COVERED BY OUR CSR POLICY, HAVE BEEN IDENTIFIED BY A MATERIALITY ANALYSIS CSR RISK MAPPING MATERIALITY ANALYSIS Key Issues Customer survey Consultation of internal stakeholders Consultation of external stakeholders ETHICS FOR ALL Key issues THE CLIMATE SUSTAINABILITY OF THE DEVELO
Slide 23: A 5-pillar CSR policy to address risks and seize opportunities
A 5-PILLAR CSR POLICY TO ADDRESS OUR RISKS AND SEIZE BUSINESS OPPORTUNITIES SUSTAINABLE CONSUMPTION HUMAN TERRITORIES AND CAPITAL CULTURE CLIMATE BUSINESS ETHICS 23
Slide 24: Promoting a sustainable consumption
PROMOTING A SUSTAINABLE CONSUMPTION OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Help customers to make an educated choice • Encourage repairs, give a second life to products and ensure waste collection and recycling 1.7M of repair products in 2020 • Contribute to public debate around sustainability No
Slide 25: Independent expertise and customers' advice for responsible consumption
AN INDEPENDENT EXPERTISE AND CUSTOMERS’ ADVICE FOR A RESPONSIBLE CONSUMPTION 1968 1984 2018 2019 2020 Creation of the Partnership with Launch of Launch of First retailer in first after-sales ENVIE - The product – the “Durable the world to services 2012 reparability index choice by Darty” operate an
Slide 26: Extending products' life span is a key engagement
EXTENDING PRODUCTS’ LIFE SPAN IS A KEY ENGAGEMENT TO OUR CUSTOMERS ASSISTANCE & SECOND LIFE REPAIR CIRCULAR ECONOMY EDUCATED CHOICE RECYCLING 2+1 collecting system A 100% Fnac Darty recycling yard since 1994 26
Slide 27: Fnac Darty, an economic, social and cultural actor
FNAC DARTY, AN ECONOMIC, SOCIAL AND CULTURAL ACTOR OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Provide access to culture to as many people as Bookstore in France possible #1 Ticket vendor in France • Increase the positive impact on the territories Record shop owner in France (employment and solidarity
Slide 28: Fnac Darty's climate strategy
FNAC DARTY‘S CLIMATE STRATEGY OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Limiting the environmental impact of our activities through an ambitious CO2 and waste policy -12% CO2 emissions resulting from site energy REDUCING BY 50% CO2 EMISSIONS BY 2030 vs. 2019 consumption in France vs. revenue 14% ren
Slide 29: Fnac Darty's climate strategy: scope of coverage
FNAC DARTY‘S CLIMATE STRATEGY SCOPE OF COVERAGE FNAC DARTY IS COMMITTED TO REDUCING CO2 EMISSIONS BY 50% BY 2030 vs. 2019 An objective in line with science and the 1.5°C trajectory Scope 1 Scope 2 Scope 3 – indirect emissions WAREHOUSE + STORES GAS WORK FUEL IN UPSTREAM PROGRESS DELIVERY HOME-WORK P
Slide 30: Human capital our key asset: skills and employability
HUMAN CAPITAL OUR KEY ASSET DEVELOP SKILLS AND EMPLOYABILITY OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Continuation of strategic training programs • Development of sales expertise and strengthening NEW career website enhancing the recruitment managers’ leadership skills experience • Development of p
Slide 31: Human capital: gender equality and quality of life
HUMAN CAPITAL OUR KEY ASSET PROMOTE GENDER EQUALITY AND QUALITY OF LIFE IN THE WORKPLACE OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Guaranteeing equal treatment, promoting diversity in its Professional equality teams, and fostering equal opportunities 40% women in the total workforce >40% OF THE UNDE
Slide 32: Human capital: health, safety and commitment
HUMAN CAPITAL OUR KEY ASSET GUARANTEE EMPLOYEE HEALTH & SAFETY AND DEVELOP COMMITMENT OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Give meaning to work and manage employee commitment • Prevention for delivery and installation personnel and after- Employee commitment sales technicians • Risk prevention
Slide 33: Fnac Darty faces ethical requirements
FNAC DARTY FACES ETHICAL REQUIREMENTS OUR RECENT ACHIEVEMENTS OUR COMMITMENTS • Protecting the personal data of employees and customers • Preventing the risks of corruption • Implementing a Vigilance Plan BUSINESS CODE OF CONDUCT in Feb 2021 available • Ensuring fiscal responsibility NEW in all coun
Slide 34: Finance
li FINANCE FNAC DARTY “if y
Slide 35: Q1 2021 Revenue
li Q1 2021 REVENUE FNAC DARTY “Uf y
Slide 36: Q1 2021 Revenue
Q1 2021 REVENUE Change vs Q1 2020 • Q1 2021 sales at €1,818m, up +21.7% on a like- Revenue Q1 2021 for-like basis1 vs Q1 2020 €m Reported Like-for-Like1 – Ongoing restrictions impacting physical stores France & Switzerland 1,505 +24.8% +24.5% – Solid momentum in almost all product Iberian Peninsula
Slide 37: Outlook
OUTLOOK • The Covid crisis is still ongoing with restrictions remaining in some countries in which the Group operates, but with encouraging evolution to come – In France, reopening of all the stores to be expected from May 19th. France has entered a 3rd national lockdown from end of March with more
Slide 38: FY 2020 Results
li FY 2020 RESULTS FNAC DARTY “ff y
Slide 39: Solid 2020 performance despite the crisis
SOLID 2020 PERFORMANCE DESPITE THE CRISIS Post 2nd lockdown Pre-lockdown Reopening of stores November 29 – December 31 January 1 – March 14 From May 11 to end of September Black Friday postponed to Dec 4 1st lockdown From May 11 to From July to end of 2nd lockdown March 15 – May 10 end of June Septe
Slide 40: 2020 Fnac Darty main achievements
2020 FNAC DARTY MAIN ACHIEVEMENTS • Success of the full scale Covid-19 stress test on Fnac Darty’s business model confirming the relevance of the Group’s strategy – Switch from offline to online sales and ability to cope with strong peaks in demand with proactive and targeted goods inventory policy
Slide 41: Group revenues & current operating income
GROUP REVENUES & CURRENT OPERATING INCOME • Sales growth of +0.6% on a like-for-like basis1 driven by the €m strong momentum in online sales despite the in-store traffic (IFRS 5 excluding BCC) 2019 2020 % Change impacted by two lockdowns in the context of the Covid-19 crisis • Gross margin rate reac
Slide 42: Performance by geographic region
PERFORMANCE BY GEOGRAPHIC REGION • France & Switzerland €m 2019 2020 Change – Strong sales growth thanks to excellent digital performance which fully offset the drop in in-store traffic related to the crisis France & Switzerland – Current operating income impacted by the decline of the gross margin
Slide 43: Group reported financial results
GROUP REPORTED FINANCIAL RESULTS €m (IFRS 5 excluding BCC) 2019 2020 • Financial expense of €51m in 2020 including the cost of guarantee of the State-guaranteed loan Current operating Income 293 215 and related set-up costs amounting to €2.6m, and the impact of IFRS 16 totaling €22m Non-current oper
Slide 44: Simplified H1 & H2 2020 P&L vs. 2019
SIMPLIFIED H1 & H2 2020 P&L VS. 2019 €m H1 2019 H2 2019 H1 2020 H2 2020 Revenues 3,093 4,256 2,849 4,642 Gross Margin 951 1,285 844 1,342 % Revenues 30.7% 30.2% 29.6% 28.9% Total costs -905 -1,038 -902 -1,069 % Revenues 29.3% 24.4% 31.7% 23.0% Current operating income 46 247 -58 273 Non-current oper
Slide 45: Strong free cash flow generation in 2020
STRONG FREE CASH FLOW GENERATION IN 2020 €m • EBITDA1 down €59m in line with current operating (IFRS 5 excluding BCC) 2019 2020 income evolution EBITDA 626 567 • CAPEX2 of €99m, in line with the indication given by the Group IFRS 16 impact -231 -245 • Solid operating free cash-flow1 of €192m sustain
Slide 46: Disclaimer
DISCLAIMER IMPORTANT NOTICE: By reading this presentation, you agree to be bound by the following limitations and qualifications: certain information included in this release is not based on historical facts but on forward-looking statements. Such forward-looking statements speak only as of the date
Slide 47: ISR Presentation 2021
ISR PRESENTATION 2021