Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — FY2018 Earnings Presentation
39 slides from Fnac Darty Sa's earnings presentation, Feb 21, 2019
Slide 1: Fnac Darty 2018 Annual Results
eC FEBRUARY 2157, 2019 a FNAC DARTY
Slide 2: Agenda
AGENDA INTRODUCTION AND 2018 STRATEGIC ACHIEVEMENTS 9.30 am Enrique Martinez, CEO 2018 ANNUAL RESULTS PRESENTATION 10.00 am Jean-Brieuc Le Tinier, CFO CONCLUSION AND Q&A SESSION 10.30 am 2
Slide 3: Introduction & 2018 Strategic Achievements
INTRODUCTION & 2018 STRATEGIC ACHIEVEMENTS Enrique Martinez, CEO
Slide 4: Fnac Darty, Leading Omnichannel Retailer
FNAC DARTY, LEADING OMNICHANNEL RETAILER 780 multi-format stores Successful merger between two iconic brands across the world 25,000 people sharing the same values and the Confiance+ roadmap 2nd Largest e-commerce player in France1 Facing a time of transformation for the whole retail sector, Fnac Da
Slide 5: Strong 2018 Results
STRONG 2018 RESULTS EBIT evolution by year in €m Topline growth delivered Strong increase in Current Operating Income at €296m, up +10% vs. 2017, reflecting good operational performance and synergies completion Tight commercial policy Gross margin at 30.3%, increased by +20bps, excluding the impac
Slide 6: 2018: Successful Integration
2018: SUCCESSFUL INTEGRATION BUILDING 1 GROUP WITH 2 BANNERS STRONG OPERATIONAL EXECUTION A joint organization serving 2 banners Operational agility and peerless execution Increased organizational agility Market share gains in France1 Promote a common culture around shared and engaging values Rapid
Slide 7: Confiance+: Omnichannel Model Relies on Stores, Warehouses and Aftersales
CONFIANCE+: OUR OMNICHANNEL MODEL RELIES ON A NETWORK OF STORES, WAREHOUSES AND AFTERSALES SERVICE A DENSE STORE NETWORK AN EFFICIENT OPERATIONS PLATFORM 11 main warehouses in Europe 780 stores at year-end 2018 12m packages processed/year 250 stores digitalized at the end of 2018 60 openings targete
Slide 8: Building Strong Digital Capabilities
BUILDING STRONG DIGITAL CAPABILITIES ON OPERATIONAL AND OMNICHANNEL GROUNDS ONLINE SALES REPRESENT 19% OF TOTAL SALES 30M references available on our Marketplace 49% of online sales are now omnichannel 56% of web traffic is mobile 8
Slide 9: A First Successful Confiance+ Year
A FIRST SUCCESSFUL “CONFIANCE +” YEAR STRATEGIC PARTNERSHIPS FOCUS ON GOOGLE 3-month exclusive partnership with Google to launch its connected smart speaker and Google Home Google offer available in all Fnac and Darty stores, including around 50 corners “Darty Button" incorporated in Google Assistan
Slide 10: Confiance+: Enriched Ecosystem for Our Customers
CONFIANCE+: ENRICHED ECOSYSTEM FOR OUR CUSTOMERS A SEAMLESS SHOPPING EXPERIENCE STANDING OUT WITH ADVICE & “CHOIX ECLAIRÉ” Customers’ advice with our salesmen and Cross-banner Click & Collect technical expertise thanks to LaboFnac A cash register free experience with Pay & Reinforced offering for re
Slide 11: Fnac Darty
eC FEBRUARY 2157, 2019 a FNAC DARTY
Slide 12: 2018 FY Results
2018 FY RESULTS Jean-Brieuc Le Tinier, CFO
Slide 13: Topline Growth and Good Commercial Execution
TOPLINE GROWTH AND GOOD COMMERCIAL EXECUTION Exceptional items impacting topline growth throughout the year Group sales evolution by Q1: weather conditions impact of -0.4pt on sales quarter(1) 3.4% Q2: strikes in France impacting store traffic 0.6% 0.4% Q3: high comparison basis related to pro
Slide 14: France and Switzerland in 2018
FRANCE AND SWITZERLAND IN 2018 Stable sales on a LFL basis in a consumption climate €m 2017 2018 % Change impacted by multiple exceptional effects (weather in Q1, Revenues 5,856 5,835 -0.4% strikes in Q2 and “Yellow Vests” protests in Q4) Like-for-like(1) -0.1% Strong execution in Q4 driven by succe
Slide 15: Iberian Peninsula in 2018
IBERIAN PENINSULA IN 2018 Strong sales growth throughout the year €m 2017 2018 % Change Growth in Spain despite still tense political climate Revenues 676 703 +4.1% Continuing strong growth in Portugal Like-for-like(1) +1.4% Current operating income 24 25 +8% Continuing expansion (3 openings in
Slide 16: Benelux in 2018
BENELUX IN 2018 Good sales performance in very competitive markets €m 2017 2018 % Change Both Belgium and Netherlands delivering sales growth Revenues 917 936 +2.1% Like-for-like(1) +2.1% Excellent Q4 performance with market share gains Current operating income 12 5 -€7m Solid performance in Belgium
Slide 17: 2018 Group Current Operating Income
2018 GROUP CURRENT OPERATING INCOME Growth of sales despite tough markets €m 2017 2018 % Change Strong control of gross margin, up +20bp excluding the dilutive impact of franchises Revenues 7,448 7,475 +0.4% Costs down, reflecting: Gross Margin 2,261 2,265 % Revenues 30.4% 30.3% -10bp Fnac Darty s
Slide 18: Group Reported Financial Results
GROUP REPORTED FINANCIAL RESULTS Strong current operating income growth €m 2017 2018 reflecting operational agility Current operating Income 270 296 Non-current items mainly reflecting cost of implementation of synergies, and €20m fine from Non-current operating income and expenses -53 -39 Competiti
Slide 19: Strong Free Cash Flow Generation in 2018
STRONG FREE CASH FLOW GENERATION IN 2018 €m 2017 2018 Cash impact of 2017 non-recurring elements EBITDA 370 399 due to integration rollout Non-recurring cash elements(1) -17 -38 Working capital impact is positive despite high Cash flow from operations before tax, 353 361 dividends and interest(1) co
Slide 20: A Strong Liquidity Position
A STRONG LIQUIDITY POSITION Return to a net cash position, only two years after the acquisition of Darty €m 31/12/2017 31/12/2018 Successful bank debt renegotiation in H1 2018, with improved terms and 2y maturity gain Shareholders’ equity 1,103 1,261 Net Debt 86 (7) 100 million credit agreement sign
Slide 21: Net Debt Evolution in 2018
NET DEBT EVOLUTION IN 2018 Operating Free Cash Flow: €173m(1) 1 72 118 361 20 7 11 -86 48 Net cash Cash Flow from Change in Corporate Operating Fine from French Share Net financial Net cash position at operations working capital income tax paid investments net Competition buyback cost and other posi
Slide 22: Fnac Darty
eC FEBRUARY 2157, 2019 a FNAC DARTY
Slide 23: Conclusion
CONCLUSION Enrique Martinez, CEO
Slide 24: Vision and 2019 Key Focus
VISION AND 2019 KEY FOCUS Being even more Client centric Accelerating our digital transformation Leverage trust and loyalty “Digital Factory” and major investments in IT Offer the best market omnichannel experience Updated marketplace platform Focus on team training to bring best in class customer T
Slide 25: Fnac Darty
eC FEBRUARY 2157, 2019 a FNAC DARTY
Slide 26: Appendices
APPENDICES FNAC DARTY
Slide 27: Definitions
DEFINITIONS Definition of current operating income The monitoring of the Group’s operating performance uses the current operating income as the main operating balance. It is defined as the difference between the total operating profit and the “Other non-current operating income and expenses.” Re
Slide 28: Fnac Darty Profile
FNAC DARTY PROFILE Technical products 51% France & €7.5bn revenue – 25,000 employees Editorial products 2018 Switzerland 78% 2018 17% Turnover Turnover Iberian Top 3 European Omnichannel Retailer €7.5bn White goods €7.5bn Peninsula 9% 22% 780+ multiformat stores in 12 countries Other products and se
Slide 29: Q4 and FY Revenue vs 2017 Reported
Q4 AND FY REVENUE VS 2017 REPORTED Change vs. Q4 2017 Change vs. 2017 At constant FX At constant FX Q4 2018 and 2018 and Like-for-like Like-for-like Reported comparable Reported comparable at constant FX at constant FX scope of scope of consolidation consolidation €m France and 1,994 2.8% 2.6% 2.5%
Slide 30: Q1-Q2-Q3 Revenue vs 2017
Q1-Q2-Q3 REVENUE VS 2017 Change vs. Q1 2017 Change vs. Q2 2017 Change vs. Q3 2017 At constant At constant At constant Q1 2018 FX and Like-for-like Q2 2018 FX and Like-for-like Q3 2018 FX and Like-for-like Reported comparable at constant Reported comparable at constant Reported comparable at constant
Slide 31: H1 and H2 Revenue vs 2017
H1 AND H2 REVENUE VS 2017 Change vs. H1 2017 Change vs. H2 2017 At constant FX At constant FX H1 2018 and H2 2018 and Like-for-like Like-for-like Reported comparable Reported comparable at constant FX at constant FX scope of scope of consolidation consolidation €m France and Switzerland 2,482 -1.4%
Slide 32: EBITDA & EBITDAR
EBITDA & EBITDAR 2017 2018 Current operating income 270 296 Net depreciation and amortization charges 100 103 EBITDA 370 399 Rents 212 210 EBITDAR 582 609 32
Slide 33: Cash Flow Statement
CASH FLOW STATEMENT €m 2017 2018 Net cash as of January 1 -207 -86 Operating Free Cash Flow 199 153 Interest paid net of interest and dividends received -26 -33 Acquisition / disposal of subsidiaries net of cash transferred -0 -11 Acquisition / disposal of other financial assets (net) -2 -2 Increase
Slide 34: Working Capital
WORKING CAPITAL As of As of €m December 31, 2017 December 31, 2018 Inventories 1,073 1,092 Accounts receivable 243 197 Accounts payable -1,594 -1,624 Other operational working capital -602 -560 Operational working capital -880 -895 Financial accounts receivable 4 -2 Accounts receivable and payable r
Slide 35: Simplified P&L
SIMPLIFIED P&L Reported €m 2017 2018 Var. Revenues 7,448 7,475 +0.4% Current operating income 270 296 +10% Non-current operating income and expenses -53 -39 -26% Operating income 217 257 +19% Financial charges -44 -43 -2% Tax -48 -65 +35% Consolidated net income from continuing operations 125 150 +2
Slide 36: Balance Sheet
BALANCE SHEET Assets in €m FY 2017 FY 2018 Equity and Liabilities in €m FY 2017 FY 2018 Goodwill 1,541 1,560 Share capital 27 27 Intangible assets 473 480 Reserves related to equity 989 995 Conversion reserves -5 -5 Tangible assets 611 620 Other reserves 86 236 Investments in associates 22 20 Equity
Slide 37: Store Network
STORE NETWORK December 31, 2017 December 31, 2018 Owned Franchised Total Owned Franchised Total France and 312 204 516 316 255 571 Switzerland(1) Iberian Peninsula 55 4 59 57 5 62 Benelux 153 0 153 147 0 147 Group 520 208 728 520 260 780 (1) Including 11 stores abroad (2 in Tunisia, 3 in Morocco, 1
Slide 38: Disclaimer
DISCLAIMER IMPORTANT NOTICE: By reading this presentation, you agree to be bound by the following limitations and qualifications: Certain information included in this release is not based on historical facts but on forward-looking statements. Such forward-looking statements speak only as of the date
Slide 39: Fnac Darty
eC FEBRUARY 2157, 2019 a FNAC DARTY