Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Debt Investor Presentation (November 2024)
29 slides from Fnac Darty Sa's debt investor presentation, November 2024
Slide 1: Credit Investor Presentation November 2024
CREDIT INVESTOR PRESENTATION NOVEMBER 2024
Slide 2: Disclaimer
Disclaimer Important notice By reading this presentation, you agree to be bound by the following limitations and qualifications: The offer for Unieuro shares (the “Offer”) has not been and will not be made in the United States of certain information included in this release is not based on historica
Slide 3: Snapshot of a European omnichannel leader
Snapshot of a European omnichannel leader 15% 47% 1,010 1 #1 Non-grocery stores 43% Franchises 84 in Belgium Other products and services Consumer electronics / Luxemburg Retailer in France, Belgium and 18% €7.9bn Switzerland 838 in France / Switzerland Editorial 2023 Revenue #1 products 88 in Spain
Slide 4: 9m 2024 Highlights
9m 2024 Highlights Revenue Services €5,238m +1.0% Sustained high single 2024 Current digit growth on a reported basis vs 9m 2023 Operating Income2 target raised, Gross margin rate Unieuro expected to up 50 bps1 Successful exceed €180m vs 9m 2023 acquisition 1 Excluding dilutive impacts from Franchis
Slide 5: Unieuro acquisition update
Unieuro acquisition update A unique & ▪ Build the leading player in specialized retail in Western & Southern Europe with >€10bn revenues transforming and #1/#2 positions in its main markets opportunity ▪ Unlock >€20m of run-rate synergies ▪ Value creating for all stakeholders 91.15% of the share cap
Slide 6: Resilient cash flow generation
Resilient cash flow generation €m 2022 2023 ▪ Free Cash Flow from operations3 reached €180m, fully aligned with our guidance of €500m EBITDA 580 533 cumulative for the period 2021-2024 IFRS 16 impact (254) (264) Free cash flow (in €m) Non-current cash items and EBITDA non- cash items (9) (38) 173 19
Slide 7: Sound and long-dated debt maturity profile
Sound and long-dated debt maturity profile Financial debt by repayment maturity (in €m) 550 ▪ Successful refinancing of 2024 and 2026 senior notes: €550m maturing in April 2029 200 17 17 17 17 17 ▪ Undrawn credit lines: 2024 2025 2026 2027 2028 2029 2030 EIB loan Convertible bond² 2029 Senior Notes
Slide 8: A well-balanced capital structure
A well-balanced capital structure ▪ Net cash position to €198m excl. IFRS 16 in 2023 and strong liquidity position of €1.7bn end Dec. 2023 ▪ Controlled net debt with an objective to deleverage down to c. 1.5x net leverage1 in the mid-term €m 2022 2023 ▪ €100m gross debt already repaid following the
Slide 9: 2024 Outlook revised up
2024 Outlook revised up ▪ First encouraging signals from macro indicators : decreasing inflation and interest rates ▪ Solid performance of Services ▪ Major end-of-year sales events will be decisive high points ▪ Assuming no unfavorable change in the economic and geopolitical context, the Group revis
Slide 10: Q&A
Q&A
Slide 11: Appendices: Unieuro
yy, 7, APPENDICES UNIEURO FNAC DARTY
Slide 12: Unieuro: A retail leader in Italy outperforming its market
Unieuro: A retail leader in Italy outperforming its market 5231 Stores 12% 59% o/w 48% affiliates Other products Consumer and services electronics 17% Online #1 €2.6bn o/w 31% C&C 29% 2023/24 Revenue Domestic Customer Best Retailer appliances 8% CAGR (Consumer over 2016/17-2023/242 Electronics) 17%
Slide 13: Transaction rationale
Transaction rationale & Unieuro a unique opportunity, delivering sustainable value Unique ▪ Consolidate our European leadership in specialized retail opportunity ▪ Key combined figures: >€10bn revenue, ~30,000 professionals and > 1,500 stores ▪ Leading positions in our main markets ▪ Strong strategi
Slide 14: Transaction highlights
Transaction highlights ▪ Fnac Darty and Ruby Equity Investment to launch a mixed Key public tender offer1 for each Unieuro share transaction ▪ €9.0 in cash 5 terms ▪ 0.10 newly issued Fnac Darty shares2 ▪ C. €12 per share representing a premium of 42% over spot VWAP and a premium of 34% over 3m VWAP
Slide 15: Sustainable value creation
& Unieuro : Sustainable value creation >€20m + run-rate synergies1 Leveraging (pre-tax, in 2025) capabilities, processes and systems Upside from Positive Private label further management synergy impact synergies potential on current operating to be income and free cash flow explored post Purchasing
Slide 16: Perfectly aligned with Fnac Darty's strategy
Perfectly aligned with Fnac Darty's strategy Unieuro Build Strengthen a digitized Omnichannel the omnichannel trade omnichannel retail Scale Grow the next in-home Services beyond trade subscription-based (services, retail media, private assistance service label and 2nd Life) Lead Sustainability dura
Slide 17: Combination of Fnac Darty and Unieuro
2023 Unieuro Combination Incl. synergies Dec. 31, 2023 Feb. 28, 2024 Revenue €7.9bn + €2.6bn = €10.5bn Adj. EBIT1 €171m €35m €226m As a % of revenue 2.2% + 1.3% = 2.2% Headcount ~25,000 + ~5,000 = ~30,000 Store network >1,000 + >500 = >1,500 17 1 Corresponds to EBIT adjusted for (i) non-recurring ex
Slide 18: Combined revenue of >€10bn
Combined revenue of >€10bn attractive balance, both by product category and geography Unieuro Combination Dec. 31, 2023 Feb. 28, 2024 Revenue €7.9bn €2.6bn €10.5bn Consumer electronics 15% 12% 14% 14% 59% 22% By product Domestic appliances 17% 21% 47% 22% 18% + = category Editorial products online o
Slide 19: Mixed cash and shares offer
Mixed cash and shares offer protecting Fnac Darty’s balance sheet and capital allocation Offer consideration ~6.6% Dilution of Fnac Capital increase (c. €60m) Darty shareholders2 c.25% ¬ With existing EGM authorization Shares ¬ ~2.0m shares1 Cash contribution (c. €56m) €56m c.1/3 additional net debt
Slide 20: Indicative transaction timeline
Indicative transaction timeline Expected completion in Q4 2024 Announcement Offer filing Offer opening Offer closing Integration ✓ September 2, 2024 ✓ ✓ July 16, 2024 July 29, 2024 > Approval by Italian Market Authority ✓ Competition and other regulatory approval ongoing 20
Slide 21: Fnac Darty & Unieuro: a unique & transforming opportunity
& Unieuro : a unique & transforming opportunity #1 #2 85 PoS #2 Build the leading Unlock >€20m of run-rate Western 15 PoS Player synergies & Southern In specialized retail in Player Western & Southern #1 Europe with >€10bn revenues and #1/#2 817 PoS1 positions in its main 30,000 #1 523 PoS² markets
Slide 22: Appendices: Fnac Darty
yy, 7, APPENDICES FNAC DARTY
Slide 23: Subscription service generating more recurring, sticky revenues
Subscription service generating more recurring, sticky revenues x1.5 repeat shops > 1.1 million subscribers compared to a standard in 2023 Darty customer Essentiel €11.99/month 2 million subscribers in 2025 Evolution €16.99/month x1.7 average cart size compared to a standard Subscription rolled out
Slide 24: Simplified P&L
Simplified P&L €m 2022 2023 Revenue 7,949 7,875 Current operating income 231 171 Non-current operating income and expenses (27) (131) • Exceptional elements1 (4) (106) • Other non-current elements (23) (25) Operating income 204 40 Financial expense (45) (79) Tax (54) (31) Consolidated net income fro
Slide 25: 2023 Balance sheet
2023 Balance sheet Assets in €m 31 Dec. 2022 31 Dec. 2023 Equity and Liabilities in €m 31 Dec. 2022 31 Dec. 2023 Goodwill 1,654 1,680 Share capital 27 28 Reserves related to equity 971 987 Intangible assets 562 566 Conversion reserves (4) (6) Tangible assets 570 544 Other reserves 518 513 Rights of
Slide 26: Store network
Store network December 31, 2023 September 30, 2024 Owned Franchised Total Owned Franchised Total France and Switzerland1 407 431 838 406 434 840 Iberian Peninsula 82 6 88 80 5 85 Belgium and Luxembourg 84 0 84 84 0 84 Group 573 437 1,010 570 439 1,009 1 Including 13 stores abroad (1 in Saudi Arabia,
Slide 27: Definitions (1/2)
Definitions (1/2) ▪ Definition of like-for-like (LFL) sales growth ▪ This indicator measures changes in revenue excluding exchange rate fluctuations, the impact of change in scope and the impact of the opening and closing of directly owned stores since January 1, N-1. ▪ Definition of current operati
Slide 28: Definitions (2/2)
Definitions (2/2) With application of IFRS 16 IFRS 16 restatement Without application of IFRS 16 Current EBITDA Current EBITDA excluding IFRS 16 Current operating income before depreciation, Rents within the scope amortization and provisions on fixed operational of IFRS 16 Current EBITDA including r
Slide 29: Fnac Darty
FNAC DARTY
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