Ceconomy Ag · XETR:CEC
Ceconomy — Q1 2021/22 Earnings Presentation
36 slides from Ceconomy's earnings presentation, Feb 7, 2022
Slide 1: Results Presentation Q1 2021/22
Results Presentation Q1 2021/22 7 February 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: Review Q1 21/22, Financial Performance, Outlook
1 REVIEW Q1 21/22 2 FINANCIAL PERFORMANCE 3 OUTLOOK 3
Slide 4: Staying focused during crisis
Staying focused during crisis We delivered a robust performance while coping with continued COVID restrictions in Germany, the Netherlands and Austria as well as supply shortages and a cyberattack We further improved operationally and enhanced our customer-centric omnichannel experience We con
Slide 5: Robust performance – Q1 in line with pre-pandemic levels despite severe headwinds
Robust performance – Q1 in line with pre-pandemic levels despite severe headwinds 01 02 Below record-breaking PY, but External factors like COVID and resilient development with sales supply shortages aggravated of 6.9 €bn, an improved gross performance in Q1 21/22 margin and an EBIT1 of 274 €m 03 04
Slide 6: Current market environment makes PY comparison difficult
Current market environment makes PY comparison difficult Q1 20/21 Q1 21/22 Previous year Current year Pulled forward Christmas demand with high External headwinds: COVID restrictions, supply momentum in Consumer Electronics shortage and cyberattack Less severe restrictions, temporary store clo
Slide 7: Group-wide campaigns well managed
Group-wide campaigns well managed European-wide “black campaigns” carried out successfully in all of our 13 country organizations Total sales in Black November campaign period above 19/20 levels, online sales doubled Campaigns addressed excess inventory in certain product categories COVID restrictio
Slide 8: Very encouraging uplift of our business since mid-December
Very encouraging uplift of our business since mid-December Sales trend1 CECONOMY Group Sales trend1 CECONOMY Germany (in % vs PY) (in % vs PY) 80 Q1: -13% Q1: -7% Oct’21 Nov’21 Dec’21 Jan’22 Oct’21 Nov’21 Dec’21 Jan’22 Positive momentum since CW 50, total sales for CECONOMY on PY level for the 4M
Slide 9: Omnichannel: Strong focus on execution
Omnichannel: Strong focus on execution ” Fair prices, good service plus option After Sales Spain to pick up online orders in the stores NPS +7 points without delivery fees, which is great Currently 50 (vs 43 in PY) Improved in-store & online Close collaboration with industry partners Shorter
Slide 10: Customized after sales solutions in Spain
Customized after sales solutions in Spain We push after sales and turn them into an element of customer loyalty New customer centric processes in Spain, including end-to-end responsibilities for inquiries, led to a significant NPS increase Newly established repair facilities in cooperation wit
Slide 11: Strongly growing marketplace
Strongly growing marketplace Marketplace running in Germany and Spain, expansion to Austria and Netherlands to come in 2022 Wide range of assortment (> 500 sellers offer > 400k SKUs) complemented by new categories Strong GMV1 growth and attractive margin contribution Q1 20/21: 4.5 €m Q1 21/22:
Slide 12: Optimizing logistics and delivery
Optimizing logistics and delivery Fulfillment lead-times in our warehouses significantly reduced, improvement compared to previous periods of up to >40% in some countries New urban hubs make home deliveries more convenient for customers and more efficient for the organization Together with imp
Slide 13: Together on the BetterWay – Sustainability
Together on the BetterWay – Sustainability Launch of our umbrella logo “BetterWay” for a sustainable lifestyle in consumer electronics Products certified along key dimensions: socially responsible manufacturing, materials used, emissions and energy efficiency or recyclability of a product Logo
Slide 14: Financial Performance
1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OUTLOOK 14
Slide 15: Solid sales and EBIT weathering adverse market conditions
Solid sales and EBIT weathering adverse market conditions Total sales (in €m) +2.9%1 -7.3%1 7,464 Sales below exceptional prior year, yet above pre-pandemic levels of 6,821 6,854 FY 19/20 Pre- COVID Q1 19/20 Q1 20/21 Q1 21/22 Negative impact of COVID-related restrictions in key countries, supply cha
Slide 16: Online sales remain substantially above pre-pandemic levels
Online sales remain substantially above pre-pandemic levels Online sales (in €m) +80.2% -16.5% Online share remains on sustainably elevated levels 2,259 1,887 Absolute online sales development adversely impacted by limited product availability and cyberattack 1,048 Pick-up ratio improved to 36% (+4%
Slide 17: Stable Services & Solutions business despite lower group sales
Stable Services & Solutions business despite lower group sales Services & Solutions sales (in €m) Stable Services & Solutions sales against reduced store frequency, -8.4% lower sales and more transactional business +0.2% 375 343 344 Insufficient product availability in categories with high attachmen
Slide 18: Various factors contributed to a higher gross margin
Various factors contributed to a higher gross margin Gross margin (as % of sales) +0.3%p. Positive impact from channel shift and customer delivery thanks to lower online share and improved pick-up ratio 17.0% 17.3% Competitive environment and availability of goods weighing on goods margin. Planned s
Slide 19: Reduced operational costs and lower COVID-related subsidies
Reduced operational costs and lower COVID-related subsidies OPEX1 (as % of sales) -0.5%p. Stable absolute OPEX amount achieved despite lower COVID-related state +1.1%p. subsidies 14.8% 14.3% 13.2% OPEX ratio reduction of 0.5%p. compared to pre-COVID levels driven by savings from implementation of ne
Slide 20: All segments except DACH on par with PY & well ahead of pre-pandemic levels
All segments except DACH on par with PY & well ahead of pre-pandemic levels DACH EASTERN EUROPE €m / % Q1 21/22 €m / % Q1 21/22 Total sales 3,919 Total sales 552 DACH with sales- and margin-related Growth in LC1 -11.5% Growth in LC1 11.4% decline in light of ongoing COVID Reported yoy change -11.4%
Slide 21: EPS decline in line with EBIT development
EPS decline in line with EBIT development EBITDA to EPS (in €m) Q1 20/21 Q1 21/22 Reported EBIT decline in line with adj. EBIT development; only minor restructuring items in both years EBITDA 521 445 EBIT 340 276 Net financial result -10 -10 Stable financial result driven by higher dividends from M.
Slide 22: Stable Free Cash Flow driven by improved inventory position
Stable Free Cash Flow driven by improved inventory position yoy change Free Cash Flow in Q1 21/22 (in €m) -75 +259 -54 -193 -12 -75 +6 -70 1,115 -42 Seasonal increase in trade payables; Reversal of PY‘s 1,253 YoY lower build- -219 1,126 COVID-related -47 up of inventories income tax -127 due to deli
Slide 23: Outlook
1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OUTLOOK 23
Slide 24: Outlook for FY 21/22 confirmed
Outlook for FY 21/22 confirmed FY 20/21 FY 21/22 Key Assumptions Influence of the COVID Sales1 21,361 €m Slight pandemic less harmful as in FY 20/21 (e.g. fewer and increase shorter closure of stores) Inflation and availability of goods expected to normalize over the course of the year Further
Slide 25: Volatile sales due to COVID and related restrictions
Volatile sales due to COVID and related restrictions Total sales growth1 (in % vs 18/19) 20 FY 19/20: -1.8% FY 20/21: +1.6% (vs 18/19) 10 Volatile sales development since Q2 19/20 due to lockdowns and the boost from pent-up demand 0 Development above pre-pandemic levels continues in Q1 21/22 -10 Q2
Slide 26: In a nutshell
In a nutshell Robust performance and confirmation of guidance Easing of COVID restrictions leads to immediate sales uplift, double-digit growth since mid-December Further transformational steps achieved, with strong improvement of in-store experience and logistics network, while full benefits
Slide 27: Q&A
Q&A Dr Karsten Wildberger Florian Wieser 27
Slide 28: Financial calendar
Financial calendar Annual General Meeting Extraordinary General Meeting Q2/H1 21/22 results 9 FEBRUARY 2022 12 APRIL 2022 13 MAY 2022 Q3/9M 21/22 Q4/FY 21/22 Q4/FY 21/22 results trading statement results 11 AUGUST 2022 26 OCTOBER 2022 15 DECEMBER 2022 28
Slide 29: Upcoming events
Upcoming events CFO Roadshow (Baader - DACH region) CEO Roadshow (Kepler) Jefferies Pan-European Mid-Cap 14 FEBRUARY 2022 16 FEBRUARY 2022 31 MARCH 2022 29
Slide 30: 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/ 30
Slide 31: Appendix
APPENDIX 31 Ceconomy
Slide 32: Envisaged timeline of the transaction with Convergenta Invest GmbH
Envisaged timeline of the transaction with Convergenta Invest GmbH 9 February 2022 Late February 2022 12 April 2022 Q3/Q4 2021/22 Annual General Meeting Convocation of Extraordinary General Closing extraordinary General Meeting Meeting Capital increase and convertible Earliest end of May 2022 – Divi
Slide 33: Reported EBIT included only minor non-recurring effects or other Adj. items
Reported EBIT included only minor non-recurring effects or other Adj. items Adj. EBIT1 excl. associates to reported EBIT in Q1 21/22 (€m) 274 3 276 -1 Mainly related to minor provision release in connection with the introduction of our new Operating Model ADJ. EBIT NON-RECURRING EFFECTS OTHER ADJ. I
Slide 34: Net Working Capital
Net Working Capital €m 30/09/2020 31/12/2020 Change 30/09/2021 31/12/2021 Change Inventories 2,949 3,668 719 3,111 3,611 500 Trade receivables and similar claims 488 493 4 361 415 53 Receivables due from suppliers 1,302 1,834 532 1,142 1,701 559 Trade liabilities and similar liabilities -5,996 -8,10
Slide 35: All segments except DACH ahead of pre-pandemic levels of 19/20
All segments except DACH ahead of pre-pandemic levels of 19/20 DACH EASTERN EUROPE €m / % Q1 21/22 €m / % Q1 21/22 Total sales 3,919 Total sales 552 Growth in LC vs PPY1 -3.4% Growth in LC vs PPY1 35.3% Adj. EBIT2 180 Adj. EBIT2 23 Adj. EBIT margin 4.6% Adj. EBIT margin 4.2% Adj. EBIT change vs PPY
Slide 36: CECONOMY
CECONOMY