Ceconomy Ag · XETR:CEC
Ceconomy — Q3 2021/22 Earnings Presentation
31 slides from Ceconomy's earnings presentation, Aug 11, 2022
Slide 1: Results Presentation Q3/9M 2021/22
Results Presentation Q3/9M 2021/22 11 August 2022
Slide 2: Disclaimer and Notes
Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation (including registered broker-dealers nor financial advisors and the permitted use of any particular, deviate from any historical financial information based on all slides of this document), the oral presentat
Slide 3: Business Update, Financial Performance, Summary
1 BUSINESS UPDATE 2 FINANCIAL PERFORMANCE 3 SUMMARY 3
Slide 4: Q3 21/22: Gloomy market climate
Q3 21/22: Gloomy market climate Results Q3 21/22 Key developments in Q3 Market share gain of 0.4%-points3 NPS improved by 6 point to 53 Sales Adj. EBIT 1 2 Convergenta transaction closed +6.3% €-16 m vs PY vs PY Macro environment deteriorated Sales trend slowed down considerably since June Lack of g
Slide 5: Macroeconomic environment characterized by accelerating inflation and declining consumer confidence
Macroeconomic environment characterized by accelerating inflation and declining consumer confidence European inflation1 Gas price development2 German consumer sentiment 3 Record high in July Import prices (DE): Lowest level since since start of euro +8.9% >3x above PY and measurement began -31 in 19
Slide 6: Outlook FY 21/22: Adjusted due to adverse macro conditions
Outlook FY 21/22: Adjusted due to adverse macro conditions Updated guidance FY 21/22 Underlying assumptions The previous outlook assumed that consumer sentiment would improve after COVID-19 and that inflation would return Sales : 1 to normal. The situation has been deteriorating since May, and On PY
Slide 7: Targeted action plan to manage current challenges
Targeted action plan to manage current challenges Task force set up to manage the crisis Cost control & margin Create market NWC and stock Prepare for potential protection momentum management gas restrictions (DE/AT) Reasonable price New promotions and Active stock Energy-saving measures increases c
Slide 8: We are continuing to execute our omnichannel strategy
We are continuing to execute our omnichannel strategy Key strategic areas and selected recent achievements Customer experience – NPS improved to 53 (highest value so far) Services & Solutions – Attach rate further increased online and offline Online business – New webshop in Italy, now 80% of online
Slide 9: Financial Performance
1 BUSINESS UPDATE 2 FINANCIAL PERFORMANCE 3 SUMMARY 9
Slide 10: Deteriorating consumer sentiment after solid start into Q3
Deteriorating consumer sentiment after solid start into Q3 Sales Adj. EBIT2 (€m) (€m) +6.3%1 €-16 m Sales growth driven by Eastern Europe and DACH against a COVID-19 impacted PY base; however, sales trend reversed during Q3 due to 4,407 4,659 deteriorating consumer sentiment Q3 EBIT negatively impac
Slide 11: Online sales share remains clearly above pre-COVID-levels
Online sales share remains clearly above pre-COVID-levels Online sales (€m) -28.7% -28.1% Q3 9M 5,872 1,494 4,220 1,065 33.9% as % of sales 22.9% 36.3% as % of sales 25.5% Q3 20/21 Q3 21/22 9M 20/21 9M 21/22 Online sales in line with expectations and nearly doubled Online sales benefit from higher o
Slide 12: Services & Solutions business with continued encouraging development
Services & Solutions business with continued encouraging development Services & Solutions sales (€m) +23.1% +21.1% Q3 9M 950 785 299 243 5.5% as % of sales 6.4% 4.8% as % of sales 5.7% Q3 20/21 Q3 21/22 9M 20/21 9M 21/22 Strong growth in Services & Solutions continued in Q3 and Double digit sales gr
Slide 13: Services & Solutions fuelled gross margin improvement versus weak prior year
Services & Solutions fuelled gross margin improvement versus weak prior year Gross margin1 (as % of sales) Q3 +1.3%p. Recovery of stationary business in Q3 influenced gross margin positively 17.2% 15.9% Goods margin slightly improved vs COVID-19 affected PY; margin recovery dampened by rising inflat
Slide 14: OPEX ratio in Q3 slightly higher compared to previous year's low level
OPEX ratio in Q3 slightly higher compared to previous year’s low level OPEX1 (as % of sales) +1.1%p. Q3 In Q3, OPEX ratio increased in line with the absence of COVID-19 subsidies, which were still relevant in previous year’s Q3 19.2% 20.3% A notable inflation-related increase of our operative cost b
Slide 15: All segments match previous year's earnings level except DACH
All segments match previous year’s earnings level except DACH DACH EASTERN EUROPE €m / % Q3 21/22 €m / % Q3 21/22 DACH benefitted from a recovery in Total sales 2,492 Total sales 529 B&M business; yet, noticeable decline Growth in LC1 5.3% Growth in LC (pre IAS 29)1 63.6% of consumer sentiment, infl
Slide 16: EPS decrease mainly caused by impairment of Fnac Darty stake
EPS decrease mainly caused by impairment of Fnac Darty stake EBITDA to EPS (€m) Q3 9M Q3 20/21 Q3 21/22 9M 20/21 9M 21/22 Reported EBIT impacted by Fnac EBITDA 74 49 649 627 Darty impairment (€-56 m) while EBIT -106 -180 233 61 previous year’s Q2 benefitted from an impairment reversal (€150 m) Net f
Slide 17: FCF seasonally low in 9M; year-on-year decrease due to VAT deferrals in PY
FCF seasonally low in 9M; year-on-year decrease due to VAT deferrals in PY YOY change Free Cash Flow in 9M 21/22 (€m) -22 +94 -71 -296 -36 -331 +14 -317 627 Higher advance payments and Reversal of PY‘s scheduled COVID-related VAT repayments deferrals in DE compared to PY Investments for -765 moderni
Slide 18: Summary
1 BUSINESS UPDATE 2 FINANCIAL PERFORMANCE 3 SUMMARY 18
Slide 19: Focus for Q4 21/22 and beyond: strengthening competitive position and gaining market share
CECONOMY’s focus for Q4 21/22 and beyond: Strengthening our competitive position and gain market share Navigating through the storm Executing our omnichannel strategy Cost & margin protection Customer experience Store landscape Leveraging market position in Continued focus on NPS 4 new lightho
Slide 20: In summary
In summary We have been dealing with a deteriorating consumer climate in the course of Q3 We are preparing ourselves for further macroeconomic headwinds and have crisis management in place We are increasing efficiency in our operations, in stores, online and in our logistic networks We are r
Slide 21: Q&A
Q&A Dr Karsten Wildberger Florian Wieser Results Presentation Q3/9M 2021/22 on 11 August 2022 21
Slide 22: Financial calendar
Financial calendar Q4/FY 21/22 Q4/FY 21/22 trading statement results 26 OCTOBER 2022 15 DECEMBER 2022 Results Presentation Q3/9M 2021/22 on 11 August 2022 22
Slide 23: Upcoming events
Upcoming events Commerzbank and ODDO BHF - SdK virtual company presentation Baader Investment Conference Corporate Conference (in German) 8 SEPTEMBER 2022 14 SEPTEMBER 2022 20 SEPTEMBER 2022 Results Presentation Q3/9M 2021/22 on 11 August 2022 23
Slide 24: Contact
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/ Results Presentation Q3/9M 2021/22 on 11 August 2022 24
Slide 25: Appendix
APPENDIX Results Presentation Q2/H1 2021/22 on 13 May 2022 25
Slide 26: Shareholder structure and number of shares after conversion of preference shares and Convergenta transaction
Shareholder structure and number of shares after conversion of preference shares and Convergenta transaction 6.7% 11.1% 4.8% Beisheim 4.2% Exor Original # of ordinary shares: 356,743,118 Shareholder 37.5% structure1 # of converted preference shares: 2,677,966 Free float2 # of new ordinary shares: 12
Slide 27: Heterogenous segment developments, profitability below pre-pandemic levels except Eastern Europe
Heterogenous segment developments, profitability below pre-pandemic levels except Eastern Europe DACH EASTERN EUROPE €m / % 9M 21/22 €m / % 9M 21/22 Total sales 9,225 Total sales 1,498 Growth in LC1 1.5% Growth in LC (pre IAS 29)1 31.9% Reported yoy change 1.6% Reported yoy change 12.8% Adj. EBIT2 7
Slide 28: Reported EBIT Q3
Reported EBIT Q3 Adj. EBIT1 excl. associates to reported EBIT in Q3 21/22 (€m) Mainly related to • COVID-19-related store closures • New operating model Mainly Fnac Darty • Retail tax Hungary impairment -109 -14 -57 -180 ADJ. EBIT NON-RECURRING EFFECTS OTHER ADJ. ITEMS (PORTFOLIO, ASSOCIATES) REPORT
Slide 29: Reported EBIT 9M
Reported EBIT 9M Adj. EBIT1 excl. associates to reported EBIT in 9M 21/22 (€m) 102 -18 Mainly reflecting -23 • COVID-19-related 61 store closures • New operating model Fnac Darty impairment • Retail tax Hungary partially compensated by Fnac Darty profit share ADJ. EBIT NON-RECURRING EFFECTS OTHER AD
Slide 30: Net Working Capital
Net Working Capital €m 30/09/2020 30/06/2021 Change 30/09/2021 30/06/2022 Change Inventories 2,949 3,439 489 3,111 3,378 267 Trade receivables and similar claims 488 320 -168 361 405 44 Receivables due from suppliers 1,302 938 -364 1,142 1,067 -75 Trade liabilities and similar liabilities -5,996 -5,
Slide 31: CECONOMY
CECONOMY