Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (October 2019)
41 slides from Fnac Darty Sa's investor presentation, October 2019
Slide 1: Corporate Presentation 2019
CORPORATE PRESENTATION 2019 1
Slide 2: 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 3: Two iconic brands merger creating a strong leader
TWO ICONIC BRANDS MERGER CREATING A STRONG LEADER “L’agitateur culturel” “Le contrat de confiance” Founded in 1954 Founded in 1957 Expertise built through focus on customer Model of “best price, best choice, best relations, laboratory testing and quality service” of sales force Strong after-sales ca
Slide 4: A balanced and resilient product offering
A BALANCED AND RESILIENT PRODUCT OFFERING… Consumer Electronics 51% Editorial Products 17% Consumer Electronics growth Resilience in books underpinned by short innovation Declining DVD and CD markets, whilst cycles 2018 gaming segment driven by innovation Strong relationship with key brands / manufa
Slide 5: With highly distinctive customer service
…WITH HIGHLY DISTINCTIVE CUSTOMER SERVICE FNAC DARTY OFFERS BEST IN CLASS CUSTOMER EXPERIENCE PRE & IN-SALE AFTER-SALE INDEPENDENT TECHNICAL CREDIT CARD WARRANTY REMOTE ASSISTANCE MOBILE / BOX ADVICE LEASING THEFT AND INSURANCE IN-STORE ASSISTANCE ENERGY REPARABILITY INDEX BUY
Slide 6: A strong management team with significant industry knowledge
A STRONG MANAGEMENT TEAM WITH SIGNIFICANT INDUSTRY KNOWLEDGE ENRIQUE MARTINEZ Chief Executive Officer of Fnac Darty More than 20 years at Fnac Darty in various positions of responsability Member of the Executive Committee since 2004 ANNABEL CHAUSSAT ANNE-LAURE FELDKIRCHER FRÉDÉRIQUE GIAVARINI Ma
Slide 7: Fnac Darty, a responsible company
FNAC DARTY, A RESPONSIBLE COMPANY A committed actor in the circular economy 2,500,000 breakdown call-outs including 1,500,000 repairs in 2018 40.4 38.6% YEARS OLD 2,000 dedicated repair staff Average age Women Customer information from independent experts: 1,038 tests on 492 products carried out
Slide 8: 2019 Confiance+ Rollout
2019 CONFIANCE+ ROLLOUT FNAC DARTY
Slide 9: An enriched ecosystem to accelerate Fnac Darty's transformation
AN ENRICHED ECOSYSTEM TO ACCELERATE FNAC DARTY’S TRANSFORMATION Reinforced multi-specialist profile of the Group through acquisitions Acquisition of Nature & Découvertes, a leader in the omnichannel distribution of natural and well-being products. • First shop-in-shop opened in September at Fnac L
Slide 10: An omnichannel platform reinforced to offer the best client experience
AN OMNICHANNEL PLATFORM REINFORCED TO OFFER THE BEST CLIENT EXPERIENCE Continued expansion of store network in 9M 2019 815 stores at end of September 2019 More than 290 stores digitalized Close to 60 openings targeted in 2019 Acceleration in digital development Digital factory project deploy
Slide 11: 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 12: Acceleration of the Group's diversification and educated choice
ACCELERATION OF THE GROUP’S DIVERSIFICATION AND CONTINUING INITIATIVES TO PROMOTE AN “EDUCATED CHOICE” Continued acceleration in Kitchen corners deployment 16 new Kitchen points of sale opened in 9M 2019, o/w 8 stand alone More than 150 Kitchen points of sale at end of September 2019 Acceleratio
Slide 13: Focus on Darty Max – the offering
FOCUS ON DARTY MAX – THE OFFERING A MONTHLY SUBSCRIPTION PLAN DEDICATED TO REPAIR AND ASSISTANCE FOR LARGE DOMESTIC APPLIANCES After-sales service regardless of product age or place of purchase Phone assistance, maintenance and usage advice, home call-outs and diagnosis Repair covered for at l
Slide 14: Focus on Darty Max - a value-creating services offering
FOCUS ON DARTY MAX - A VALUE-CREATING SERVICES OFFERING 14
Slide 15: Q3 2019 and recent developments
Q3 2019 AND RECENT DEVELOPMENTS
Slide 16: Sales resilience in Q3 2019
SALES RESILIENCE IN Q3 2019 Revenue at €1,816 million up +3.7% on a reported basis and +1.7% on a like-for-like basis1 in Q3 2019 International operations recording solid performance despite a challenging competitive environment France-Switzerland grew by +0.4% on a like-for-like basis. Q3 2019
Slide 17: Half-Year Results 2019
2019 HALF-YEAR RESULTS FNAC DARTY
Slide 18: H1 2019 Highlights
H1 2019 HIGHLIGHTS Solid sales momentum with Group revenue of €3,284.6 million, up 2.6% on a like-for-like basis, driven by all regions and digital Current operating income at €42.2 million, with a solid gross margin rate of 30.4%, despite the technical impact of perimeter effects and product mix Po
Slide 19: Solid topline growth in H1
SOLID TOPLINE GROWTH IN H1 Group sales evolution by quarter(1) Context 3.6% 2.6% Less deteriorated environment in Q2 in France 1.7% Negative comparison basis in Q2 due to the soccer World Cup in June 2018 Fierce competition Q1 2019 Q2 2019 H1 2019 Good commercial agility Solid gross margin (%
Slide 20: France and Switzerland in H1 2019
FRANCE AND SWITZERLAND IN H1 2019 €m H1 2018 H1 2019 Change Strong commercial performance Good performance of LDA, Hardware, Telephony and Books Revenues 2,482 2,524 +1.7% TV segment impacted by high comparison basis Current operating income 47 40 -€7m First impacts of insurance commission norma
Slide 21: Iberian Peninsula in H1 2019
IBERIAN PENINSULA IN H1 2019 €m H1 2018 H1 2019 Change Good commercial performance against a lackluster economic backdrop and intense competition Revenues 294 296 +0.5% Strong dynamic of web sales, posting double-digit growth Current operating income 3.3 5.5 +€2.2m Good performance of Sound and IT s
Slide 22: Benelux in H1 2019
BENELUX IN H1 2019 €m H1 2018 H1 2019 Change Strong sales growth in Benelux driven by the partnership with Wehkamp Revenues 423 465 +9.8% Double-digit growth of web sales in both countries Current operating income -4.2 -3.6 +€0.6m Continuing strong performance of white goods Operating margin -1.0% -
Slide 23: H1 2019 Group financial results
H1 2019 GROUP FINANCIAL RESULTS €m H1 2018 H1 2019 Non-current operating expenses impacted by: Current operating income 46 42 Restructuring plans in Benelux Non-current operating income Exceptional tax-free bonus as part of President Macron’s plan -11 -22 and expenses Operating income 35 21 Fina
Slide 24: IFRS 16 impacts
IFRS 16 IMPACTS Application of the modified retrospective method which consists in reclassifying lease obligations as debt, and recognizing in an asset “the right of use” Regarding lease contracts within the scope of IFRS16, rental expenses are no longer recognized in the income statement, but in D&
Slide 25: Free cash flow generation
FREE CASH FLOW GENERATION €m H1 2018 H1 2019 EBITDA down €4m excluding the impact of IFRS 16, in line with current operating income evolution EBITDA 95 207 Higher non-recurring cash items reflecting higher non- IFRS 16 impact - -116 current expenses in H2 2018 Non-recurring cash elements -16 -30 Wor
Slide 26: A strong liquidity position
A STRONG LIQUIDITY POSITION €m 31/12/2018 30/06/2019 Net debt impacted by natural seasonality of activity Shareholders’ equity 1,261 1,177 Net Debt1 (7) 452 Strong equity position and liquidity Gross debt (excl. EIB loan) 911 928 Cash & cash equivalents (919) (476) Significantly improved debt struct
Slide 27: Conclusion
CONCLUSION FNAC DARTY
Slide 28: Conclusion and objectives
CONCLUSION AND OBJECTIVES In H2, focus on: Commercial execution and cost control for high season in Q4 Continuing rapid integration of recent acquisitions Acceleration on digital Reinforced omnichannel footprint (close to 60 store openings targeted in 2019) “Educated choice” for customers
Slide 29: Appendices
APPENDICES FNAC DARTY
Slide 30: Definitions
DEFINITIONS Definition of Like-for-like sales growth This indicator measures changes in revenue excluding exchange rate fluctuations, the impact of variations in perimeter and the impact of the opening and closing of integrated stores since January 1, N-1. Definition of Current operating income
Slide 31: Definitions
DEFINITIONS EBITDA EBITDA excluding IFRS 16 + Rents within the scope Current operating income before depreciation, amortization of IFRS 16 = EBITDA including rental expenses within the scope of IFRS 16 and provisions on fixed operational assets Free Cash flow from operations Free Cash flow from oper
Slide 32: Q1/Q2/H1 Revenue
Q1/Q2/H1 REVENUE Change vs. Q1 2018 Change vs. Q2 2018 Change vs. H1 2018 At constant FX At constant FX At constant FX and and and comparable (€m) Q1 2019 Reported Like for like Q2 2019 Reported comparable Like for like H1 2019 Reported comparable Like for like scope of scope of scope of consolidati
Slide 33: 9M 2019 Revenue
9M 2019 REVENUE Change vs. 9M 2018 (€m) 9M 2019 Reported Like for like France and Switzerland 3,921 +2.1% +1.1% Iberian Peninsula 465 +1.5% +0.5% Benelux 715 +9.7% +10.2% Group 5,101 +3.0% +2.3% 33
Slide 34: EBITDA & EBITDAR excluding IFRS 16
EBITDA & EBITDAR EXCLUDING IFRS 16 (€m) H1 2018 H1 2019 EBITDA 95 91 Property rents 105 108 EBITDAR 200 199 34
Slide 35: Net income to net current income
NET INCOME TO NET CURRENT INCOME (€m) H1 2018 H1 2019 Net income from continuing activities, Group share 6.8 (39.0) Non-current expenses 10.9 21.5 Non-current financial expenses 5.9 27.0 Taxes1 (12.7) (9.4) Net current income, Group share 10.9 0.1 (1) Including non-current tax effects, as well as th
Slide 36: Cash flow statement
CASH FLOW STATEMENT (€m) H1 2018 H1 2019 Net debt excluding IFRS 16 as of January 1 86 (7) Cash flow from operations before tax, dividends and interest 78 178 Change in working capital (321) (371) Corporate income tax paid (17) (15) Operating investments (45) (49) Operating free cash flow (305) (258
Slide 37: Balance sheet
BALANCE SHEET At December 31, At December 31, At June 30, Assets in €m At June 30, 2019 Equity and Liabilities in €m 2018 2018 2019 1,560 1,585 Share capital 27 27 Goodwill Reserves related to equity 984 972 Intangible assets 480 471 Conversion reserves (5) (4) Tangible assets 620 593 Other reserves
Slide 38: Store network
STORE NETWORK December 31, 2018 June 30, 2019 September 30, 2019 Owned Franchised Total Owned Franchised Total Owned Franchised Total France and 316 255 571 316 279 595 316 287 603 Switzerland(1) Iberian Peninsula 57 5 62 57 5 62 60 6 66 Benelux 147 0 147 147 0 147 146 0 146 Group 520 260 780 520 28
Slide 39: Contact
CONTACT Stéphanie Constand Marina Louvard VP Investor Relations and Financing Investor Relations and Financing Manager Directrice Relations Investisseurs et Financement Manager Relations Investisseurs et Financement Tel : +33 1 55 21 18 63 Tel : +33 1 72 28 17 08 Mob. : +33 7 50 12 03 78 Mob. : +33
Slide 40: 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 41: Corporate Presentation
CORPORATE PRESENTATION 2019 41