Ceconomy Ag · XETR:CEC
Ceconomy — Q3/9M 2022/23 Earnings Presentation
34 slides from Ceconomy's earnings presentation, Aug 10, 2023
Slide 1: Results Presentation Q3/9M 2022/23
Results Presentation Q3/9M 2022/23 10 August 2023
Slide 2: Disclaimer and Notes
Results Presentation Q3/9M 2022/23 on 10 August 2023 2 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 (incl
Slide 3: Disclaimer
Results Presentation Q3/9M 2022/23 on 10 August 2023 3 Disclaimer Please be aware that results for our operationss in Sweden (the transaction was closed as of 1 August) and Portugal (the transaction is expected to be closed before the end of the fiscal year) are still included in our reported number
Slide 4: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 5: Good Q3 performance prompts us to revise our outlook for FY 22/23
Results Presentation Q3/9M 2022/23 on 10 August 2023 5 Good Q3 performance prompts us to revise our outlook for FY 22/23 / CE market up 2% in Q3 (-5% excl. TR) / CECONOMY maintained its market share with gains in DE, AT, NL, TR / Increase in adj. EBIT due to stable +7.4% +€43 m +€990 m gross margin
Slide 6: CECONOMY maintained market share in a challenging CE market
Results Presentation Q3/9M 2022/23 on 10 August 2023 6 CECONOMY maintained market share in a challenging CE market CE market up 2% in Q31 supported by Türkiye MediaMarktSaturn maintained its market share / Bricks & Mortar market increased mid / Market share gains in B&M offset weakness single-digit
Slide 7: CECONOMY's sales growth momentum sustained in Q3
Results Presentation Q3/9M 2022/23 on 10 August 2023 7 CECONOMY’s sales growth momentum sustained in Q3 Customer experience Countries Stores NPS of 55, up 2 points Strong performance B&M sales up 8.2%1 in yoy in DE, NL, TR Q3 yoy Improving profitability trends in ES and IT Online Growth business Ser
Slide 8: Our key pledges for FY 25/26
Results Presentation Q3/9M 2022/23 on 10 August 2023 8 Our key pledges for FY 25/26 Retail Core 50m loyalty members | c. 30% online share >90% modernization rate | -10% stock reach1 Services & Market- Private Space-as- Retail Media Solutions place Label a-service c. 5.5% €750 m c. 5% Up to 20 c. €45
Slide 9: Update on our key pledges following our CMD
Results Presentation Q3/9M 2022/23 on 10 August 2023 9 Update on our key pledges following our CMD Business fields KPI FY 2021/22 Progress 9M 2022/23 FY 2025/26 Retail Core Loyalty members1 34 m 50 m Retail Core Online share 25% c. 30% Retail Core Modernization rate1 30% > 90% Retail Core Stock reac
Slide 10: Q3 highlights: retail core tech transformation
Results Presentation Q3/9M 2022/23 on 10 August 2023 10 Q3 highlights: retail core tech transformation Xpress store format Store remodelling / First genuine Xpress store opened in Germany / New store design – first store remodelled in / 950 sq m sales space with ca 3,500 SKUs in- Lucca (Italy): new,
Slide 11: Q3 technology & ESG highlights
Results Presentation Q3/9M 2022/23 on 10 August 2023 11 Q3 technology & ESG highlights Our tech transformation continues Strong development of our trade-in offer / Roll-out of our new web shop platform in Trade-in products in 1,000 units Belgium (July 23) +90% / 6 out of 11 countries now live, repre
Slide 12: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 13: Continued good performance in Q3 prompts us to update our guidance
Results Presentation Q3/9M 2022/23 on 10 August 2023 13 Continued good performance in Q3 prompts us to update our guidance Q3 development over the years = COVID restrictions / Good sales performance (+7.4%1 vs. PY) -0.8% +7.4%1 / Sales increase driven by B&M. Improving Reported 4,565 4,407 4,659 4,5
Slide 14: 9M performance leads us to select scenario 1 as our sole guidance
Results Presentation Q3/9M 2022/23 on 10 August 2023 14 9M performance leads us to select scenario 1 as our sole guidance 9M development over the years = COVID restrictions / 9M sales performance solid (+5.9%1 vs. PY) +2.6% +5.9%1 Reported Sales 16.459 15.559 16.193 16.531 16.895 / Sales increase dr
Slide 15: All regions posted EBIT improvement in Q3 2022/23
Results Presentation Q3/9M 2022/23 on 10 August 2023 15 All regions posted EBIT improvement in Q3 2022/23 Segments Q3 2022/23 DACH Western/ / Sales increased in DE, AT, and declined in CH Eastern €m DACH Southern Others4 CECONOMY Europe and HU Europe / EBIT improvement in all countries, except CH, S
Slide 16: Robust Services & Solutions sales driven by B&M
Results Presentation Q3/9M 2022/23 on 10 August 2023 16 Robust Services & Solutions sales driven by B&M Q3 development over the years = COVID restrictions / Solid development of S&S sales (+5.3% vs PY) driven by B&M +9.2% +5.3%2 Services & 299 302 / Strong performance from warranties and 277 243 Sol
Slide 17: Stabilized gross margin and rigorous cost control drive adj. EBIT improvement
Results Presentation Q3/9M 2022/23 on 10 August 2023 17 Stabilized gross margin and rigorous cost control drive adj. EBIT improvement Q3 development over the years = COVID restrictions / Gross margin stabilization in Q3 22/23 flat.1 / Product margin flat despite a continued Gross 18.7% 17.6% 17.6% c
Slide 18: Stabilization of gross margin thanks to flat product margin
Results Presentation Q3/9M 2022/23 on 10 August 2023 18 Stabilization of gross margin thanks to flat product margin Q3 2022/23 / Gross margins stabilized in Q3 / Product margin flat despite a competitive Gross environment and an increased GSM share margin1 17.6% 17.6% / Aided by lower logistics cost
Slide 19: Our efficiency programmes are ramping up
Results Presentation Q3/9M 2022/23 on 10 August 2023 19 Our efficiency programmes are ramping up Expected savings Measures Restructuring costs ~€130 m ~€100 m run rate from the end of FY 2023/24 until FY 2024/25 / High single-digit millions / Expansion and restructuring / €31 m restructuring costs s
Slide 20: Net profit decline mainly due to distorted tax income in PY
Results Presentation Q3/9M 2022/23 on 10 August 2023 20 Net profit decline mainly due to distorted tax income in PY Adj. EBIT to EPS Q3 Adj. EBIT €m 2021/22 2022/23 Change € m / €43 m improvement driven by flat gross margin and cost control Adj. EBIT -102 -60 43 Non-recurring items Non-recurring ite
Slide 21: Strong free cash flow development due to significant NWC improvement
Results Presentation Q3/9M 2022/23 on 10 August 2023 21 Strong free cash flow development due to significant NWC improvement Free cash flow (FCF) in 9M 2022/23 (yoy change, €m) Δ NWC -78 +820 +40 +216 -8 +990 +5 +996 / Strong yoy increase due to stock reduction and receivables management 549 Tax 55
Slide 22: NWC optimization in focus
Results Presentation Q3/9M 2022/23 on 10 August 2023 22 NWC optimization in focus Inventories (€m) Stock turnover (weeks) / Continued focus on stock management / Total stock reduced -471 -1.1 / Stock turnover improved from 10.5 weeks 3,378 10.5 to 9.4 weeks 2,907 9.4 30/06/2022 30/06/2023 30/06/2022
Slide 23: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 24: Post 9M, we are updating our guidance and now focus exclusively on scenario 1
Results Presentation Q3/9M 2022/23 on 10 August 2023 24 Post 9M, we are updating our guidance and now focus exclusively on scenario 1 with a moderate sales increase FY 2022/23 FY 2022/23 FY 2021/22 Guidance scenario 1 Guidance scenario 2 Sales Moderate increase1 Clear decrease1 Adj. EBIT2 Clear incr
Slide 25: Q3/9M results in summary
Results Presentation Q3/9M 2022/23 on 10 August 2023 25 Q3/9M results in summary 01 02 Good operating momentum Despite a tough CE market, continues in Q3 our market share holds steady 03 04 We’re in control. Our We prioritize the customer measures to master the experience and are building current ch
Slide 26: Questions & Answers
Results Presentation Q3/9M 2022/23 on 10 August 2023 26 Questions & Answers Dr Karsten Wildberger Dr Kai-Ulrich Deissner
Slide 27: Financial calendar
Results Presentation Q3/9M 2022/23 on 10 August 2023 27 Financial calendar Commerzbank- Corporate Baader Q4/12M 2022/23 Q4/12M 2022/23 ODDO Governance Conference Trading Results Conference Roadshow Statement 5 September 2023 12 September 2023 20 September 2023 26 October 2023 18 December 2023
Slide 28: Contact
Results Presentation Q3/9M 2022/23 on 10 August 2023 28 Contact CECONOMY AG Investor Relations Kaistr. 3 40221 Düsseldorf Germany Phone +49 (211) 5408-7222 Email IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/
Slide 29: Appendix
Appendix
Slide 30: Reported EBIT bridge & portfolio effects
Results Presentation Q3/9M 2022/23 on 10 August 2023 30 Reported EBIT bridge & portfolio effects Q3 2022/23 Adj. EBIT1 (€m) / Sweden classified as disposal in accordance with IFRS5 from Q2 2022/23, Portugal from Q3 2022/23 -60 -123 / €63 m non-recurring items including associates in Q3 2022/23, of w
Slide 31: Net working capital
Results Presentation Q3/9M 2022/23 on 10 August 2023 31 Net working capital Q3 2022/23 €m 30/09/2021 30/06/2022 Change 30/09/2022 30/06/2023 Change Inventories 3,111 3,378 267 3,176 2,907 -269 Trade receivables and similar claims 361 405 44 440 446 6 Receivables due from suppliers 1,142 1,067 -76 1,
Slide 32: Q3 reported growth significantly affected by hyperinflation accounting
Results Presentation Q3/9M 2022/23 on 10 August 2023 32 Q3 reported growth significantly affected by hyperinflation accounting Impact of IAS 29 on Q3 sales growth 7.4 0.6 / Increased impact of accounting for hyperinflation in Türkiye (IAS 29) this 2.0 4.8 quarter / -7.7% negative accounting impact o
Slide 33: Application of IAS 29, hyperinflation accounting
Results Presentation Q3/9M 2022/23 on 10 August 2023 33 Application of IAS 29, hyperinflation accounting Reported Sales Reported Sales IAS 29 IAS 29 €m sales pre-IAS sales pre-IAS effect effect 2021/22 29 2022/23 29 Q1 6,854 0 6,854 7,066 -15 7,080 Q2 5,019 0 5,019 5,302 32 5,270 Q3 4,659 66 4,593 4
Slide 34: CECONOMY
O CECONOMY