Mr Bricolage Sa · EURONEXT:ALMRB
Mr Bricolage Sa — Investor Presentation (November 2016)
49 slides from Mr Bricolage Sa's investor presentation, Nov 17, 2016
Slide 1: Presentation meeting
Presentation meeting 17 November 2016
Slide 2: Contents
Contents 1. Mr. Bricolage Group, current situation 2. Networks, current situation 3. REBOND strategic plan, main outlines 4. REBOND Offering 5. REBOND Digital and Customer Experience 6. REBOND Organization • Standardizing the information systems • Resizing the directly-owned store network 7. Outlook
Slide 3: Entrepreneurial spirit, the Mr. Bricolage DNA
Entrepreneurial spirit, the Mr. Bricolage DNA 3
Slide 4: Management Committee
Management Committee Renewed and reinforced leadership team Paul Cassignol Christophe Mistou Eric Bilhaut Richard Letourmy Chairman Chief Executive Officer CFO and IS Secretary General Hervé Onfray Françoise Devoucoux Chantal Guilmain Philippe Cibois Arriving 3 January Director Sales Director Human
Slide 5: Mr. Bricolage's journey
Mr. Bricolage’s journey Group created through a union of entrepreneurs 2016 ANPF, 65.2% shareholder 2015 REBOND Failure of Kingfisher agreement 2014 New governance Agreement with Kingfisher 2009 Acquisition of Club 2002 (central unit for Briconautes and affiliate stores) Acquisition of Groupe Tabur
Slide 6: Mr. Bricolage Group, current situation
Mr. Bricolage Group, current situation
Slide 7: Mr. Bricolage Group in brief
Mr. Bricolage Group in brief Mr. Bricolage groups local independent home improvement stores At the heart of a network of 832 stores in 12 countries with an annual volume of business of €2.1bn Brand with strong proximity: 88% awareness(1) Hyper-proximity brand Core business, Network Services Organiza
Slide 8: 2015 consolidated key figures
2015 consolidated key figures(1) Consolidated turnover Operating result €529.5M €21.0M - 2.7% - 21.1% Net financial debt €78.7M Net profit, Group share -€12.9M €9.6M - 31.5% (1) Changes calculated in relation to 2014 8
Slide 9: Decline in overall performance levels (1/3)
Decline in overall performance levels (1/3) Network Services: profitability squeezed 100,0 180 90,0 170 80,0 160 35% of 2015 consolidated 70,0 177.1 177.0 187.2 182.4 182.8 186.1 €M of turnover 210,0 150 turnover 190,0 60,0 170,0 2015 operating result = €32.9M (-13.4%(1)) 140 150,0 50,0 24.3% 130,0
Slide 10: Decline in overall performance levels (2/3)
Decline in overall performance levels (2/3) Retail: sharp downturn for directly-owned stores Focus: directly-owned stores 65% of 2015 consolidated turnover 450,0 387.6 385.3 369.3 354.2 2015 operating result = -€12.0M (-5.3%(1)) 348.4 400,0 332.7 €M of 350,0 turnover 300,0 2010 2011 2012 2013 2014 2
Slide 11: Decline in overall performance levels (3/3)
Decline in overall performance levels (3/3) Directly-owned stores: deterioration in all indicators Turnover down Operating result since 2010 negative since 2010 EBITDA negative since 2013 €105M of inventory net value in 2015 40% products with very low inventory turnover rate(1) 17 stores in critical
Slide 12: Networks, current situation
Networks, current situation
Slide 13: 759 stores in France, 73 internationally
759 stores in France, 73 internationally(1) No. 3 for DIY superstores in France in 2015, with a market share of 10.4%(2) Affiliates under their own brand France France France 264 member stores 119 member stores 289 affiliate stores + 83 directly-owned stores + 4 directly-owned stores International (
Slide 14: Strong network throughout France and international development
Strong network throughout France and international development Entrepreneurial spirit + local connections for members 46 2 1 1 11 4 1 1 French overseas departments and territories 2 (DOM-TOM) 2 2 14
Slide 15: Development losing momentum
Development losing momentum Mr. Bricolage brand stores(*) €1,703M €1,732M €1,726M €1,692M €1,655M €1,629M volume of business 446 462 462 444 425 60 66 422 stores 52 65 66 72 stores abroad 394 402 396 379 359 350 stores in France 2010 2011 2012 2013 2014 2015 (1) Mr. Bricolage directly-owned stores a
Slide 16: Mr. Bricolage members outperform the market
Mr. Bricolage members outperform the market Aggregate revenues for Mr. Bricolage members in France(1): +1.24% versus -0.24% for the market in 2015(2) 1.24% change in turnover for member stores(1) 0.72% +1.48pts outperformance versus the market(2) -0,23% 2012 2013 2014 2015 +0.87pts -1.04% + 0.83pts
Slide 17: REBOND strategic plan, main outlines
REBOND strategic plan, main outlines
Slide 18: Transformation of the economic environment
Transformation of the economic environment Contraction in business for DIY superstores since 2012(1) Increased competition Hard discount Emergence of new competitors General e-commerce leaders Transformation of consumer habits Widespread adoption of digital technologies Economy of use (1) Source: Ba
Slide 19: Build a differentiating new vision faithful to Mr. Bricolage values
Build a differentiating new vision faithful to Mr. Bricolage values(1) - Entrepreneurial spirit - Local connections - Customer proximity Mr. Bricolage is returning to the business model that has been the foundation for its success since 1964 (1) The REBOND strategic plan was approved by the Board of
Slide 20: 3 steps in the REBOND plan
3 steps in the REBOND plan With REBOND, Mr. Bricolage is moving into a new dynamic phase and looks ahead to 2020 From January 2018 Building the future June 2017 to January 2018 Rebounding & engaging November 2016 to June 2017 Going back to basics 20
Slide 21: Participatory steering framework
Participatory steering framework REBOND is further integrating the members-entrepreneurs at the heart of the decision-making process Positive environment New governance Ramping up of members’ interest in Mr. Bricolage SA’s capital Mr. Bricolage, a union of members-entrepreneurs in which everyone can
Slide 22: 3 pillars for the REBOND plan
3 pillars for the REBOND plan Challenge: further strengthening the brand's appeal in order to relaunch growth New vision looking ahead to 2020 A "vision lab" to build it together Offering + Digital + Organization 22
Slide 23: REBOND: Offering
REBOND: Offering
Slide 24: Redefining the offering
Redefining the offering Better-performing, more competitive offering Action drivers Goals Listing and purchasing Increase store - Capitalizing on the network's strength profitability levels - Simplifying processes Ranges Renew 25% of the - Rationalizing - Building a new strategy ranges / year from 2
Slide 25: 3-step action plan
3-step action plan From January 2018 Accelerating the renewal of the ranges: 25% / year June 2017 to January 2018 Building a new offering strategy November 2016 to June 2017 Rationalizing the current product ranges 25
Slide 26: Focus: step 1, rationalizing the offering
Focus: step 1, rationalizing the offering Current situation Goals Very wide and mixed offering Rationalized offering 115,000 product listings 600 suppliers listed Development of mass purchasing 48% of listings = 1% of sales + pooled purchases Direct purchases >> pooled - suppliers purchases Weightin
Slide 27: REBOND: Digital and Customer experience
REBOND: Digital and Customer experience
Slide 28: Accelerating the digital transformation
Accelerating the digital transformation Two complementary strategies Web-to-store Online pure player mr-bricolage.fr supporting in-store sales le-jardin-de-catherine.com Turnover with 2-hour collection + special order: New site launched in Q1 2016 + 39% over the first 9 months of 2016(1) Turnover: +
Slide 29: 3-step action plan
3-step action plan From January 2018 Building the future One of the market’s best omnichannel customer experiences 360° customer view June 2017 to January 2018 Rebounding & engaging Overhauling of mr-bricolage.fr Better customer knowledge 100% connected stores November 2016 to June 2017 Preparing Re
Slide 30: Step 1: Preparing
Step 1: Preparing Digital: going back to e-commerce basics Development of mr-bricolage.fr From one national site to one local site for each store - Geolocation, search engine, etc. - Enhanced product fact sheets - Expansion of the local offering thanks to the national offering Repositioning of the l
Slide 31: Step 2: Rebounding & engaging
Step 2: Rebounding & engaging Consistent buying experience across all channels Overhauling of mr-bricolage.fr - Customer journey - Look and feel - Security Consistency of digital communications Efficient and relevant contents Customer knowledge and personalized marketing Store digitalization 100% co
Slide 32: Step 3: Building the future
Step 3: Building the future Delivering one of the market’s best omnichannel customer experiences Customer loyalty Triggering purchases • Generating traffic Conversion funnel New Presentation of offering mr-bricolage.fr Online sales • Creating needs Inspirational contents Fluid omnichannel Extending
Slide 33: REBOND: Organization
REBOND: Organization
Slide 34: 1. Standardizing the information systems
1. Standardizing the information systems
Slide 35: Standardizing the information systems
Standardizing the information systems 100% of stores equipped with • Commercial management the same solutions by June 2018 • Order proposal • Payment collection Optimizing and ensuring the reliability of management of purchases, inventory, shortages for stores and the Group - Comprehensive, consiste
Slide 36: 2. Resizing the directly-owned store network
2. Resizing the directly- owned store network
Slide 37: Resizing plan for directly-owned stores
Resizing plan for directly-owned stores Plan built for each store Proposed closures 17 stores impossible to turn around In 2017 Sales to members Around 30 stores with potential In “as is” condition within 2 years Around 30 stores requiring Subsequently after investments before being sold investments
Slide 38: Proposed closure of 17 stores in 2017
Proposed closure of 17 stores in 2017 Stores in critical situations(1) Turnover excl. tax = €37.2M (11% of turnover for directly-owned stores, 2% of volume of business for networks) Operating result = -€5.3M = 50% of losses for directly-owned stores Essential measure to ensure the Group’s sustainabi
Slide 39: Social component of the proposal for closures
Social component of the proposal for 17 closures Proposal to loss of 238 positions out of the 2,507(1) Group employees Presentation of the resizing proposal on 16 November Extraordinary meeting of the Works Council In-depth social dialogue established with employee representatives Aim: proposed solu
Slide 40: Divestment to the members
Divestment to the members Members-entrepreneurs’ operational management expertise, guaranteeing their future performance Around 30 stores to be divested in “as is” condition within 2 years without any prior investment Unit value of the stores to be divested vs CGU by concept of Around 30 stores to b
Slide 41: Inventory optimization
Inventory optimization Offering redefined, incorporating the renewal of 25% of the ranges / year from 2018 2015 2nd half of 2016 31 Dec 2016 Inventory 40% products with very low Massive inventory turnover rate(1) stock clearance Inventory realizable value adjusted Inventory value adjusted downwards
Slide 42: Focus: massive stock clearance action plan
Focus: massive stock clearance action plan Over the 2nd half of 2016, plan to clear inventory with very slow turnover rates(1) July September to December Summer sales Price cuts €4.1M cash €5M cash generation generation expected (1) Maximum of 2 sales / year 42
Slide 43: Outlook
Outlook
Slide 44: REBOND outlook
REBOND outlook Initially 31 December 2016 2017 to 2019 Strong impact on results Strong cash generation €65M of provisions net of tax €55M of cash resources expected to be linked to the REBOND plan reallocated, focusing in priority on: • Reestablishing sustainable competitiveness for directly-owned s
Slide 45: REBOND outlook: looking ahead to 2020
REBOND outlook Looking ahead to 2020 Developing the networks New dimension for Mr. Bricolage SA • Increased store profitability • Development of the Network Services • Growth in the number of stores business • Growth in the e-commerce business • Reduction in turnover(1) + volume of business for the
Slide 46: Conclusion
Conclusion A first step forward to carry out Mr. Bricolage’s new vision Date set for end-July when we present our half-year earnings Our goal: creating value for the Group 46
Slide 47: Appendices
Appendices
Slide 48: Stock market
Stock market Share data Shareholding structure ISIN: FR0004034320 (at 8 July 2016) Ticker: MRB Number of shares: 10,387,755 Michel Tabur Share price at 15 November 2016: €12.99 3,28% Public Market capitalization: €135M 31,52% Eligible for SME share-based savings schemes (PEA-PME) Indices Enternext P
Slide 49: Eve Jondeau
Eve Jondeau Tel: +33 (0)2 38 43 50 00 eve.jondeau@mrbricolage.fr Marie-Anne Garigue – Grégory Bosson +33 (0)1 53 65 68 63 – +33 (0)1 53 65 37 90 mrbricolage@calyptus.net
Mr. Bricolage — Investor Presentation (November 2016) on 6ix