Ceconomy Ag · XETR:CEC
Ceconomy — Q3/9M 2023/24 Earnings Presentation
41 slides from Ceconomy's earnings presentation, Aug 14, 2024
Slide 1: Results Presentation Q3/9M 2023/24
Milan, Italy Results Presentation Q3/9M 2023/24 14 August 2024
Slide 2: 1. Business update
Graz-Seiersberg, Austria 1. Business update
Slide 3: Q3 Experience highlights: Taking further steps in meeting customer needs
Results Presentation Q3/9M 2023/24 on 14 August 2024 3 Q3 Experience highlights: Taking further steps in meeting customer needs Refurbished as customer choice Pop-Up Store for sustainable products We serve growing demand for refurbished Sustainable products offer with a focus on products in our onli
Slide 4: Dynamic momentum sustained in Q3
Results Presentation Q3/9M 2023/24 on 14 August 2024 4 Dynamic momentum sustained in Q3 / 6.6% sales growth, fueled by Stores strong 5.2% like-for-like +6.6% +€9 m +6 points / Substantial Market share gains adjusted EBIT1 sales NPS increase (Market slightly growing) growth vs. PY growth1 vs. PY vs.
Slide 5: Our operating highlights in Q3
Results Presentation Q3/9M 2023/24 on 14 August 2024 5 Our operating highlights in Q3 Continuing momentum Growth businesses Countries / B&M sales up +5.8%1 YoY / Operational S&S income / Strong sales performance in share strongly increased Spain, the Netherlands, / Online sales up +9.7%1 YoY / Marke
Slide 6: Key pledges: further progress in all business fields
Results Presentation Q3/9M 2023/24 on 14 August 2024 6 Key pledges: further progress in all business fields Target Progress Business fields KPI FY 2021/22 FY 2022/23 FY 2025/26 Q3 23/24 Retail Core Loyalty members 34 m 39 m 50 m Retail Core Online share 25% 23% c. 30% Retail Core Modernization rate
Slide 7: We are continuously strengthening our Retail Core
Results Presentation Q3/9M 2023/24 on 14 August 2024 7 We are continuously strengthening our Retail Core Online Logistics & Tech in Germany Strengthened omnichannel strategy / Key milestone in Q3: upgrading our online backend / Planned acquisition of small Migros stores in infrastructure to the late
Slide 8: Deep dive Private Label: significant positive progress in Q3
Results Presentation Q3/9M 2023/24 on 14 August 2024 8 Deep dive Private Label: significant positive progress in Q3 Private Label share development Accelerated in-house share of Private Label sales Q3 in-house / +22% Private Label sales growth in Q3 share c. 3% / Driven by volume growth Product mix
Slide 9: Continued growth for eco-friendly products and services
Results Presentation Q3/9M 2023/24 on 14 August 2024 9 Continued growth for eco-friendly products and services Sustainable KPIs in Q3 Substantial growth of sustainable sales share and assortment / BetterWay sales push across the BetterWay sales +14%p. group share 23% 9% Urban Mobility Store in Antwe
Slide 10: Building momentum in Q3 resulted in a strong 9M performance
Results Presentation Q3/9M 2023/24 on 14 August 2024 10 Building momentum in Q3 resulted in a strong 9M performance SALES growth1 6.6% 4.8% 5.2% 6M Q3 9M Adj. EBIT1 improvement 53 44 9 6M Q3 9M 1Sales adjusted for fx- and portfolio effects, pre-IAS 29. EBIT at current rate, additionally adjusted for
Slide 11: 2. Financial performance
Milan, Italy 2. Financial performance
Slide 12: Ongoing strong sales momentum drove EBIT growth
Results Presentation Q3/9M 2023/24 on 14 August 2024 12 Ongoing strong sales momentum drove EBIT growth Q3 9M / Sales growth driven by both B&M and Sales +6.6%1 +5.2%1 online sales (€m) (+8.6%) (+2.0%) / Strong like-for-like performance of 5.2% 17,236 in Q3 (4.1% in 9M) 16,895 4,527 4,918 2022/23 20
Slide 13: Dynamic top line growth and profitability trend bolstered by DACH and Western & Southern Europe
Results Presentation Q3/9M 2023/24 on 14 August 2024 13 Dynamic top line growth and profitability trend bolstered by both DACH and Western & Southern Europe Segments Q3 2023/24 Western/ DACH Eastern DACH Southern Others2 CECONOMY / EBIT improvement throughout the region, €m Europe Europe notably Ger
Slide 14: 9M EBIT progress reinforces our outlook for adjusted EBIT
Results Presentation Q3/9M 2023/24 on 14 August 2024 14 9M EBIT progress reinforces our outlook for adjusted EBIT within the range of €290 m to €310 m Segments 9M 2023/24 Western/ DACH Eastern DACH Southern Others2 CECONOMY / EBIT driven by market share momentum and €m Europe Europe cost savings mea
Slide 15: Acceleration of Services & Solutions sales in Q3
Results Presentation Q3/9M 2023/24 on 14 August 2024 15 Acceleration of Services & Solutions sales in Q3 Services & Solutions sales1,2 (€m) / Boost in S&S sales in Q3 with +18% +18.1% / Strong performance from operational Services & Solutions 348 through: – GSM contracts – Warranties 301 / Strong de
Slide 16: Online sales soar again in Q3
Results Presentation Q3/9M 2023/24 on 14 August 2024 16 Online sales soar again in Q3 1P Online sales1 (€m) / Continued strong 1P online sales growth driven by all regions +9.7% / Doubling of Marketplace GMV in Q3 1,034 / Marketplace currently live in five countries, with Italy opened in July 963 /
Slide 17: Adjusted EBIT expansion fueled by gross margin uplift and rigorous cost management
Results Presentation Q3/9M 2023/24 on 14 August 2024 17 Adjusted EBIT expansion fueled by gross margin uplift and rigorous cost management Q3 9M Gross / Q3 gross margin down -20bp impacted margin1 (%) -20bp +30bp by Logistics Transformation Shift (LTS) / Shift of personnel expense into COGS for 18.2
Slide 18: Our efficiency programmes continue to provide strong support
Results Presentation Q3/9M 2023/24 on 14 August 2024 18 Our efficiency programmes continue to provide strong support Run rate savings (€m) Restructuring costs (€m) 130 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Run rate Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cum from the 2022/23 2023/24 end of 2022/23 2023/24 2023/24 / €28 m in
Slide 19: EPS up on improved EBIT performance
Results Presentation Q3/9M 2023/24 on 14 August 2024 19 EPS up on improved EBIT performance Adjusted EBIT to EPS Q3 €m 2022/23 2023/24 Change Adjusted EBIT Adjusted EBIT -60 -51 +9 / Improvement driven by increase in sales and gross profit Non-recurring items -63 -29 +34 Non-recurring items EBIT rep
Slide 20: Our strong financial performance led to a substantial rise in 9M EPS
Results Presentation Q3/9M 2023/24 on 14 August 2024 20 Our strong financial performance led to a substantial rise in 9M EPS Adjusted EBIT to EPS 9M €m 2022/23 2023/24 Change Adjusted EBIT Adjusted EBIT 149 202 +53 / Improvement driven by increase in sales and gross profit Non-recurring items -157 -
Slide 21: Q3 free cash flow increased by €100 m YoY
Results Presentation Q3/9M 2023/24 on 14 August 2024 21 Q3 free cash flow increased by €100 m YoY 9M FCF only €135 m behind last year after Free cash flow (FCF) in 9M 2023/24 (YoY change, €m) €235m in H1 683 NWC -155 / Further normalisation: better product -14 availability to support sales growth Ta
Slide 22: Maturity profile successfully extended by early refinancing of our corporate bond
Results Presentation Q3/9M 2023/24 on 14 August 2024 22 Maturity profile successfully extended by early refinancing of our corporate bond New financing structure (in €m) / Proactive management of maturity profile by early refinancing our bond due 2026 / New sustainability-linked bond with maturity i
Slide 23: 3. Outlook and summary
Lucca, Italy 3. Outlook and summary
Slide 24: Post Q3 we update our sales outlook for 2023/24
Results Presentation Q3/9M 2023/24 on 14 August 2024 24 Post Q3 we update our sales outlook for 2023/24 // Moderate increase in currency- and portfolio-adjusted total sales // Sales growth primarily driven by Western/Southern and Eastern Europe // Adjusted EBIT range of €290 m - €310 m // Improvemen
Slide 25: CECONOMY gears up growth with AI-enhanced product lines
Results Presentation Q3/9M 2023/24 on 14 August 2024 25 CECONOMY gears up growth with AI-enhanced product lines / Major replacement cycle for laptops on the horizon / New GenAI Smartphones already on shelves / Customers need help to understand AI functions and know how to use them / We offer (exclus
Slide 26: Summary of Q3 results
Results Presentation Q3/9M 2023/24 on 14 August 2024 26 Summary of Q3 results 01 02 Sustained significant momentum in Q3 Substantial market share gains in Q3 and strong 9M performance 03 04 We have successfully extended our We improved the customer experience debt maturity profile 05 06 Our focus re
Slide 27: Disclaimer and Notes
Results Presentation Q3/9M 2023/24 on 14 August 2024 27 Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation This presentation is intended for information only, does not constitute a The market research institutes which data CECONOMY used as basis for this (inc
Slide 28: Questions & Answers
Results Presentation Q3/9M 2023/24 on 14 August 2024 28 Questions & Answers Dr. Karsten Wildberger Dr. Kai-Ulrich Deissner
Slide 29: Financial calendar
Results Presentation Q3/9M 2023/24 on 14 August 2024 29 Financial calendar Commerzbank Berenberg Goldman BofA Consumer Deutsche Börse FY 2023/24 Q4/FY 2023/24 & ODDO BHF Sachs CORPORATE & Retail Conference Deutsches trading results Corporate CONFERENCE 2024 Eigenkapitalforum statement Conference Baa
Slide 30: We would be delighted to answer your questions
Results Presentation Q3/9M 2023/24 on 14 August 2024 30 We would be delighted to answer your questions CECONOMY Investor Relations Team Kaistr. 3 40221 Düsseldorf Germany ceconomy.de/en/investor-relations Fabienne Caron Dr. Kerstin Achterfeldt Arian Ebrahimi VP, Head of Investor Relations Sr. Invest
Slide 31: Appendix
Carugate, Italy Appendix
Slide 32: Reported EBIT bridge & portfolio effects
Results Presentation Q3/9M 2023/24 on 14 August 2024 32 Reported EBIT bridge & portfolio effects Q3 / Others includes IAS 29 Effect of -€7 m in Adjusted EBIT1 Q3 (and -€29 m in 9M) (€m) / At equity investment includes -€18 m for Fnac Darty in Q3 (9M at equity adjustment includes +€28 m for Fnac Dart
Slide 33: Gross Margin development
Results Presentation Q3/9M 2023/24 on 14 August 2024 33 Gross Margin development Q3 Gross / Product margin decline due to margin1 unfavorable product mix (as % of / Positive impact from new growth sales) businesses (S&S, Retail Media, 17.6% 17.4% 18.2% Marketplace) / Gross margin up 60bp pre LTS 202
Slide 34: Reported net working capital
Results Presentation Q3/9M 2023/24 on 14 August 2024 34 Reported net working capital Q3 2022/23 Q3 2023/24 €m 31/03/2023 30/06/2023 Change 31/03/2024 30/06/2024 Change Inventories 3,061 2,907 -154 3,108 3,132 24 Trade receivables and similar claims 418 446 28 522 545 23 Receivables due from supplier
Slide 35: Q3 2023/24 hyperinflation accounting
Results Presentation Q3/9M 2023/24 on 14 August 2024 35 Q3 2023/24 hyperinflation accounting Impact of IAS 29, fx- and portfolio effects on Q3 sales growth / Positive impact from IAS 29 accounting on Sales (% growth) sales in Q3 2023/24 8.6 / Switching KPIs analysis to pre-IAS 29 more appropriate an
Slide 36: Application of IAS 29, hyperinflation accounting
Results Presentation Q3/9M 2023/24 on 14 August 2024 36 Application of IAS 29, hyperinflation accounting FY 2022/23 FY 2023/24 €m Reported sales IAS 29 effect Sales pre-IAS 29 Reported sales IAS 29 effect Sales pre-IAS 29 Q1 7,066 -15 7,080 6,984 -19 7,003 Q2 5,302 +32 5,270 5,334 +45 5,289 Q3 4,527
Slide 37: From reported to adjusted net profit — Q3
Results Presentation Q3/9M 2023/24 on 14 August 2024 37 From reported to adjusted net profit — Q3 Reported Incl. adjustments €m Comment 2022/23 2023/24 Change 2022/23 2023/24 Change Reported EBIT -123 -79 +43 -123 -79 +43 Adjustment: Portfolio 8 0 -8 Sweden and Portugal Adjustment: IAS 29 24 7 -16 T
Slide 38: From reported to adjusted net profit — 9M
Results Presentation Q3/9M 2023/24 on 14 August 2024 38 From reported to adjusted net profit — 9M Reported Incl. adjustments €m Comment 2022/23 2023/24 Change 2022/23 2023/24 Change Reported EBIT -8 183 +191 -8 183 +191 Adjustment: Portfolio 84 4 -80 Sweden and Portugal Adjustment: IAS 29 18 29 +11
Slide 39: Store network
Results Presentation Q3/9M 2023/24 on 14 August 2024 39 Store network Stores (#) 31/03/2024 Openings Closures 30/06/2024 Germany 398 0 0 398 Austria 55 0 0 55 Switzerland 25 0 0 25 Hungary 39 1 0 40 DACH 517 1 0 518 Belgium 23 0 0 23 Italy 131 0 0 131 Luxembourg 2 0 0 2 Netherlands 55 0 0 55 Spain 1
Slide 40: New segment reporting from 2023/24
Results Presentation Q3/9M 2023/24 on 14 August 2024 40 New segment reporting from 2023/24 €m pro forma Q1 2022/23 Q2 2022/23 Q3 2022/23 Q4 2022/23 FY 2022/23 Total sales 7,066 5,302 4,527 5,347 22,242 DACH 3,935 2,885 2,538 2,681 12,040 Western/Southern Europe 2,235 1,630 1,497 1,675 7,037 Eastern
Slide 41: Slide 41