Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Groupe Fnac — H1 2013 Earnings Presentation
25 slides from Fnac Darty Sa's earnings presentation, Jul 30, 2013
Slide 1: 2013 First Half Results
2013 FIRST HALF RESULTS JULY 30th, 2013 2013 Half-Year Results– July, 30th 2013
Slide 2: Disclaimer
DISCLAIMER Confidential IMPORTANT NOTICE: By attending the meeting where this presentation is given, or by reading the presentation slides, you agree to be bound by the following limitations and qualifications: Certain information included in this presentation are not historical facts but are forwar
Slide 3: Key Highlights
KEY HIGHLIGHTS Group sales down – 5.8% reported ► -5.2% at constant forex ► Difficult consumer environments in most of our geographies Continued market share gains reflecting the benefits of the transformation plan Improved ROC* thanks to operational efficiency gains and cost savings Strong increase
Slide 4: Improvement in ROC
IMPROVEMENT IN ROC €m H1 2012 H1 2013 % Change Revenues 1,773 1,670 -5.8% ► Sales down against challenging market Gross margin 541 508 -6.1% conditions % Revenues 30.5% 30.4% ► Good resistance of gross margin in a Personnel costs -287 -270 5.7% context of stronger commercial pressure % Revenues -16.
Slide 5: Focus France
FOCUS FRANCE 2013 quarterly sales €m H1 2012 H1 2013 % Change -3.8 % -4.0 % Revenues 1,208 1,161 -3.9% 594 €m 567 €m ROC -12.4 -16.1 -29.5% Q1 Q2 Operating margin -1.0% -1.4% X%: vs n-1 at constant FX ► Continued market share gains in decreasing markets ► Good progress and results on the deployment
Slide 6: Focus Iberian Peninsula
FOCUS IBERIAN PENINSULA 2013 quarterly sales €m H1 2012 H1 2013 % Change -9.5 % -8.0 % Revenues 313 286 -8.8% 152 €m 134 €m ROC 5.5 7.1 29.1% Q1 Q2 Operating margin 1.8% 2.5% X%: vs n-1 at constant FX ► Revenues negatively impacted by unfavorable macro economic conditions continuing in both countrie
Slide 7: Focus Brazil
FOCUS BRAZIL 2013 quarterly sales €m H1 2012 H1 2013 % Change -9.8 % -8.0 % Revenues 111 92 -17.5% 47 €m 45 €m Change at constant rate -8.9% ROC -3.5 -2.4 31.4% Q1 Q2 Operating margin -3.1% -2.6% X%: vs n-1 at constant FX ► Disappointing sales for H1 2013 ► Improved sales trend in Q2 : Sales(1) down
Slide 8: Focus Other Countries
FOCUS OTHER COUNTRIES 2013 quarterly sales €m H1 2012 H1 2013 Change -5.5 % -6.3% Revenues 140 131 -6.7% 68 €m 63 €m Change at constant rate -5.9% ROC -3.0 -1.0 68.1% Q1 Q2 Operating margin -2.1% -0.8% X%: vs n-1 at constant FX ► Disappointing sales performance of Belgium and Switzerland in a contex
Slide 9: Net Current Income Up +53.5%
NET CURRENT INCOME UP +53.5% % €m H1 2012 H1 2013 Change ROC -13.4 -12.4 7.5% ► Decrease in non current operating items Non-current operating income and ► 2013 net expenses comprise mostly -34 -8 76.8% expenses restructuring costs, provisions for risks Operating income -47 -20 57.0% and litigations,
Slide 10: Improvement in Free Cash Flow Generation
IMPROVEMENT IN FREE CASH FLOW GENERATION €m H1 2012 H1 2013 Change EBITDA 20.7 20.6 Other Provisions 1 5 Other 2 -3 Operating cash flow before tax (excl. non-current items) 24 23 -1 Change in working capital -246 -259 Change in liabilities relating to capex -18 -3 CAPEX -42 -19 Free cash flow before
Slide 11: Inventories and Capex
INVENTORIES AND CAPEX INVENTORIES CAPEX -5.6% -55,1% €498m €470m €42m €19m End of June End of June H1 2012 H1 2013 2012 2013 Note : Inventories as of end of Dec 2012 amounted to 495€m ► Inventories reduced thanks to ► Good control of Capex ► Refined sourcing parameters ► Focus on franchise in a asse
Slide 12: Strong Financial Structure
STRONG FINANCIAL STRUCTURE H1 2013 31/12/2012 31/12/2012 €m Equity 30/06/2013 reported restated injection Shareholder's funds 397 130 527 490 o/w equity 397 70 467 430 o/w TSSDI 60 60 60 Net cash 292 130 422 127 ► High level of shareholders’ equity ► Strong cash position as of 30 June 2013 ► Change
Slide 13: Conclusion and Prospects
CONCLUSION AND PROSPECTS ► Half-year performance demonstrates the rapid implementation of the strategic plan ► Continued market share gains / overperformance vs market ► Good management of gross margin (sourcing gains offsetting targeted price investments) ► Cost savings progressing well, allowing a
Slide 14: Appendices
APPENDICES 2013 Half-Year Results– July, 30th 2013
Slide 15: Q1 and Q2 Revenue
Q1 AND Q2 REVENUE Change vs Q1 2012 Change vs Q2 2012 Q1 2013 Like for like Q2 2013 Like for like at constant at constant €m Reported at constant Reported at constant FX FX FX FX France 594 -3.8% -3.8% -5.3% 567 -4.0% -4.0% -5.3% Iberian 152 -9.5% -9.5% -10.7% 134 -8.0% -8.0% -8.2% Peninsula Brazil
Slide 16: H1 Revenue
H1 REVENUE Change vs H1 2012 H1 2013 Like for like at constant €m Reported at constant FX FX France 1 161 -3.9% -3.9% -5.3% Iberian 286 -8.8% -8.8% -9.5% Peninsula Brazil 92 -17.5% -8.9% -11.1% Other countries 131 -6.7% -5.9% -5.9% Group 1 670 -5.8% -5.2% -6.4% 2013 Half-Year Results– July, 30th 201
Slide 17: Financial Charges H1 2013
FINANCIAL CHARGES H1 2013 €m H1 2012 H1 2013 % Change Cost of net indebtedness -3 -1 -70.5% Other financial charges (net) (1) -3 -3 5.6% Financial charges (net) -6 -4 -34.1% (1) Includes expense on the cost of free consumer credit and the impact of discounting assets and liabilities 2013 Half-Year R
Slide 18: EBITDAR
EBITDAR H1 2012 H1 2013 % Change ROC -13.4 -12.4 7.5% Net depreciation and amortization charges 34 33 -3.3% EBITDA 20.7 20.6 -0.5% Rents 69 70 0.3% EBITDAR 90 90 0.1% 2013 Half-Year Results– July, 30th 2013 18
Slide 19: Balance Sheet
BALANCE SHEET ASSETS in €m H1 2012 H1 2013 EQUITY AND LIABILITIES in €m H1 2012 H1 2013 Share capital 6 17 Goodwill 403 324 Reserves related to equity 48 494 Intangible assets 71 71 Conversion reserves 3 1 Tangible assets 217 183 Other reserves -108 -21 Non-current financials assets 29 7 Equity -51
Slide 20: Cash Flow Statement
CASH FLOW STATEMENT €m H1 2012 H1 2013 Net income from continuing operations -71 -31 Net additions to depreciation, amortization and provisions 64 16 Other non cash items 0 0 Financial interest income and expense 3 1 Net tax charge payable 21 6 Cash flow from operations before tax, dividends and int
Slide 21: Net Current Income
NET CURRENT INCOME €m H1 2012 H1 2013 Income before tax -53 -24 Non-current operating expenses and Revenues -34 -8 Current income before tax -20 -16 Current tax (expense) / Income -18 -6 Tax on non-current items 11.3 0.2 Total tax charge -30 -7 Net current income -49 -23 2013 Half-Year Results– July
Slide 22: Shareholders' Funds
SHAREHOLDERS’ FUNDS 31 60 1 1 3 70 490 397 Shareholder funds Increase in capital TSSDI Net Income Translation Treasury shares Valuation of Shareholder funds as of december 31, reserves sharebased as of June 30, 2013 2012 payments 2013 Half-Year Results– July, 30th 2013 22
Slide 23: Net Cash Position
NET CASH POSITION Free cash flow €292m 8 60 70 259 422 292 3 22 4 7 127 Net cash Increase in TSSDI Net cash pro Cash Flow Change in Corporate Net operating Net interest Other Net cash position at capital forma before tax, working income tax investments paid and position at January 1, dividends and c
Slide 24: Stores Network
STORES NETWORK December, 31th 2012 June, 30th 2013 Owned Franchised Total Owned Franchised Total France 88 16 104 88 19 107 Iberian Peninsula 42 0 42 42 0 42 Brazil 11 0 11 11 0 11 Other countries 13 0 13 13 0 13 Group 154 16 170 154 19 173 2013 Half-Year Results– July, 30th 2013 24
Slide 25: FX Exchange
FX EXCHANGE H1 2012 H1 2013 BRL (Brazil) 2.4157 2.6686 CHF (Switzerland) 1.2048 1.2299 2013 Half-Year Results– July, 30th 2013 25