Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (May 2022)
44 slides from Fnac Darty Sa's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION MAY 2022
Slide 2: Fnac Darty at a Glance
FNAC DARTY AT A GLANCE A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM 2021 revenue breakdown by category • 8.0 bn€ Group revenue in 2021 – 25,000 employees Technical products 49% • Top European Omnichannel Retailer: Editorial products 16% • 26% of total sales are onl
Slide 3: A Proven and Successful Omnichannel Model
A PROVEN AND SUCCESSFUL OMNICHANNEL MODEL 900+ multi-format stores including 390 franchises c. 27M unique visitors on the e-commerce site per month on average c. 90% or Darty store within 15’of home of French people have a Fnac c. 50% of online sales are C&C AN EFFICIENT AFTER- AN AGILE LOGISTICS AN
Slide 4: Becoming a Responsible Digitized Retailer Delivering High-Value and Durable Services
BECOMING A RESPONSIBLE DIGITIZED RETAILER DELIVERING HIGH-VALUE AND DURABLE SERVICES 2016 - 2018 2018 - 2020 > 2021 everyday au service de nos clients everyday companion of our customers RESPONSIBLE DIGITIZED RETAILER POWERFUL BEST-IN-CLASS DELIVERING HIGH-VALUE AND LEADER OMNICHANNEL DURABLE SERVIC
Slide 5: Our Strategic Plan Everyday
OUR STRATEGIC PLAN EVERYDAY • 3 main ambitions to become a responsible digitized retailer delivering high-value and durable services Build a digitized omnichannel retail Scale the next in-home Lead durable subscription-based behaviors assistance service 5
Slide 6: Build a Digitized Omnichannel Retail
BUILD A DIGITIZED OMNICHANNEL RETAIL Best-in-class online capacities >50% of total Capex invested by 2025 to offer the best experience A profitable and digitized store network, fostering the expertise of salespeople and digital footprint An uncompromised acceleration to offer high-value products to
Slide 7: Lead Durable Behaviors
LEAD DURABLE BEHAVIORS A more durable offer, combined with customers’ orientation towards durable products The promotion of responsible behaviors, notably through eased access to repair ASSISTANCE & REPAIR DURABLE OFFER RECYCLING 135 c.2,5M SECOND LIFE “durability score” products repaired USED PRODU
Slide 8: Scale the Next In-Home Subscription-Based Assistance Services
SCALE THE NEXT IN-HOME SUBSCRIPTION-BASED ASSISTANCE SERVICES Unlocking the full potential of our exclusive unlimited repairs subscription program To become the leader of in-home assistance solutions >2M subscribers to our unlimited repairs subscription program by 2025 8
Slide 9: Key Drivers to Generate Recurring Cash Flows
KEY DRIVERS TO GENERATE RECURRING CASH FLOWS • Revenue growth mainly driven by increased online activity – >30% online revenue penetration by 2025 o/w 50% is click & collect • Significant contribution in gross margin of the subscription-driven service offering – >2M subscribers to our unlimited repa
Slide 10: Ensuring Sustainable Shareholder Returns
ENSURING SUSTAINABLE SHAREHOLDER RETURNS Fund profitable growth Increased ➢ Reinvest in the business Opportunity-driven decision Free Cash Flow ➢ Tactical bolt-on M&A Incremental + + shareholder return ➢ Leverage1 of max 2.0x Controlled net debt Shareholder return policy ➢ Via special dividend or Le
Slide 11: 2021 Business and Strategic Review
2021 BUSINESS AND STRATEGIC REVIEW 11
Slide 12: Challenges and Successes in the 2-Year Crisis
THE GROUP SUCCEEDED IN THIS UNPRECEDENTED 2-YEAR CRISIS AND MET SIGNIFICANT CHALLENGES CHALLENGES Significant changes in Supply chain under Disrupted logistics Delivery capacity Disrupted social store operations pressure and digital capacity under pressure relationships FNAC DARTY’S SUCCESSES ▶ Succ
Slide 13: Exceptional Performance in 2021
EXCEPTIONAL PERFORMANCE IN 2021 • Health crisis still impacting 2021, with several store closures during H1, but to a lesser extent than in 2020 • Exceptional revenue growth to €8,043m in 2021, up +7.4% compared to 2020 and up +8.2% compared to proforma 20191 • Current operating income at €271m, up
Slide 14: Market Trends Well Oriented in Our Categories
MARKET TRENDS WELL ORIENTED IN OUR CATEGORIES CHANGE IN VALUE OF THE GROUP'S MAIN MARKETS SINCE 2018 (BASE 100) DOMESTIC APPLIANCES CONSUMER ELECTRONICS EDITORIAL PRODUCTS 2018 2019 2020 2021 • People are spending more time at home leading to higher-end demand – Strong demand for categories linked t
Slide 15: A Group Well Positioned to Meet Customers' Needs
A GROUP WELL POSITIONED TO MEET CUSTOMERS’ NEEDS • Tactical management of purchases • Continued diversification of our product – Very good availability of products despite some tension offering on the supply chain – Rollout of the Darty Cuisine offer to more than 185 – Exclusivity on innovative high
Slide 16: Accelerating the Digital Transformation
ACCELERATING THE DIGITAL TRANSFORMATION • Consolidating digital • Innovations for a reinvented • Game-changing partnership performance at a higher digital experience with Google in cloud to level than pre-Covid crisis – >150,000 interactions via video chat accelerate in digital – 5 million new web a
Slide 17: Exhaustive Monitoring of the Store Network
EXHAUSTIVE MONITORING OF THE STORE NETWORK • Stores are a key asset for the success of the • Action plans to optimize our existing store omnichannel model network – Dense store network with 957 stores at the end of 20211 – Complete review of the existing store network with action plans clearly ident
Slide 18: Promoting Sustainable Consumption and Informed Choice
PROMOTING SUSTAINABLE CONSUMPTION AND INFORMED CHOICE • More information on product sustainability • Acceleration in product repairs – 4th Barometer on the “Sustainable Choice” and extension of – 2.1 million products repaired in 2021 vs. 1.8 million in 2020 the “sustainable choice” label to Fnac to
Slide 19: Reducing the Impacts on the Environment
REDUCING THE IMPACTS ON THE ENVIRONMENT • Climate issues integrated into all the Group's • Very good improvement in CSR recognitions businesses in 2021 – -6% decrease in the transport and energy-related CO2 – Sharp increase in non-financial ratings emissions and -14% decrease in the CO2 emissions/€m
Slide 20: Scaling Darty Max, the Reference in Service
SCALING DARTY MAX, THE REFERENCE IN SERVICE Approx. 500,000 x1.5 purchase subscribers frequency vs. standard Darty vs approx. 200,000 a year ago customer >4 million +25% products already average basket covered1 vs. standard Darty customer Contribute actively High level of to product satisfaction dur
Slide 21: FY 2021 Results
FY 2021 RESULTS FNAC DARTY
Slide 22: Group Revenue & Current Operating Income
GROUP REVENUE & CURRENT OPERATING INCOME • Sales growth of +7.0% on a like-for-like basis1 due to a solid momentum in store sales, driven mainly driven by a higher €m 2020 2021 % Change conversion rate and average basket • Gross margin rate reached 29.5%, up +30 bps thanks to: – Favorable product mi
Slide 23: Group Reported Financial Results
GROUP REPORTED FINANCIAL RESULTS €m 2020 2021 • Financial charges of €42m in 2021 down vs. 2020 mainly due to the upward revaluation of the fair Current operating Income 215 271 value of the Group's shares in the Daphni Purple venture capital fund Non-current operating income -16 -10 • Tax charges u
Slide 24: Solid Free Cash-Flow Generation in 2021
SOLID FREE CASH-FLOW GENERATION IN 2021 €m 2020 2021 • EBITDA up +€54m in line with current operating income evolution EBITDA 567 621 • CAPEX2 of €117m include the investments IFRS 16 impact -245 -247 required to roll out the partnership with Manor in Switzerland and is in line with the normative No
Slide 25: Strong Liquidity Position Reinforced in 2021
STRONG LIQUIDITY POSITION REINFORCED IN 2021 €m 2020 2021 • Strong liquidity position of €1.2bn, in addition to Shareholders’ equity 1,373 1,564 a €500m revolving credit facility (RCF), which has not yet been drawn down. Net cash1 114 247 Gross debt 1,455 934 • Solid net cash position1: €247m, up +€
Slide 26: Q1 2022 Revenue
Q1 2022 REVENUE FNAC DARTY
Slide 27: Good Resilience of Q1 2022 Revenue
GOOD RESILIENCE OF Q1 2022 REVENUE Group LFL1 revenue evolution (%) • Q1 2022 revenue at €1,782m, down slightly by -2.0% on a reported basis and -2.5% on a like-for-like basis1 compared with Q1 2021, in the context of a very high comparison +21.7% basis and increased inflation -10.3% • Compared to p
Slide 28: Outlook
OUTLOOK FNAC DARTY
Slide 29: Outlook
OUTLOOK • Against a backdrop of rising inflation and geopolitical uncertainties that will impact visibility in the coming months, the Group remains attentive to the evolving situation and its potential impact on its activities and results. • For the rest of the year, the Group: ✓ Remains confident i
Slide 30: Appendices
APPENDICES FNAC DARTY
Slide 31: Definitions (1/2)
DEFINITIONS (1/2) • Definition of like-for-like 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 operating inc
Slide 32: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 Without application of IFRS 16 EBITDA EBITDA excluding IFRS 16 Rents within the scope Current operating income before depreciation, EBITDA including rental expenses within the scope of amortization and provisions on fixed operational assets of IF
Slide 33: Everyday Main CSR KPIs
EVERYDAY MAIN CSR KPIS KPIs 2020 2021 2025 objectives Durability score1 105 111 135 Number of products repaired 1.8 million 2.1 million 2.5 million % of women in the Leadership Group2 24% 27% 35% Share of underrepresented gender in the 33% 38% >40% Executive Committee 1 Average of a reliability scor
Slide 34: Fnac Darty, a Responsible Company
FNAC DARTY, A RESPONSIBLE COMPANY FOCUS ON A STRONG COMMITMENT TOWARD A MORE CIRCULAR ECONOMY A strong commitment to the circular economy with a clear engagement in extending product durability through a unique service proposal 111 849 tests on 447 products A sustainability score of 111 in carried o
Slide 35: A Responsible Retailer Recognized by External ESG Organizations
A RESPONSIBLE RETAILER RECOGNIZED BY EXTERNAL ESG ORGANIZATIONS 2021 48 • Top 20% worldwide A- 100 (rank in Universe: 358/4,923) • Rank in Sector 8/74 (vs. 9/73 in 2020) Information rate of 91% • Information rate of 95% 2020 2021 Average performance of discretionary retail B- Low 7.8 11.4/ AA 12.2 2
Slide 36: Q4 and FY 2021 Revenue vs. 2020
Q4 AND FY 2021 REVENUE VS. 2020 Change vs. Q4 2020 Change vs. 2020 At constant FX €m Q4 2021 At constant FX 2021 and and comparable Reported Like-for-like Reported comparable Like-for-like scope of scope of consolidation consolidation France and Switzerland 2,283 -2.8% -2.8% -3.3% 6,701 7.6% 7.6% 7.
Slide 37: Q1-Q2-Q3 2021 Revenue vs. 2020
Q1-Q2-Q3 2021 REVENUE VS. 2020 Change vs. Q1 2020 Change vs. Q2 2020 Change vs. Q3 2020 At constant FX At constant Q3 At constant €m Q1 2021 and Q2 2021 FX and FX and 2021 Reported comparable Like-for-like Reported comparable Like-for-like Reported comparable Like-for-like scope of scope of scope of
Slide 38: Cash Flow Statement
CASH FLOW STATEMENT €m 2020 2021 Net Cash as of January 1 -18 114 Operating free cash-flow 192 170 Dividends paid 0 -27 Shareholders’ equity component – OCEANE bonds 0 21 Interest paid net of interest and dividends received -25 -27 Acquisition/disposal of subsidiaries net of cash transferred -9 -2 A
Slide 39: Net Cash Position
NET CASH POSITION In €m Operating free cash-flow1: €170m -34 -69 -117 389 -1 -27 -7 247 114 Net cash CF from Change in Corporate Operating Discontinued Net financial Others* Net cash position position as operation working capital income tax investments activities costs as December 31, December 31, b
Slide 40: Simplified P&L
SIMPLIFIED P&L Reported €m 2020 2021 Revenue 7,491 8,043 Current operating income 215 271 Non-current operating income and expenses -16 -10 Operating income 199 260 Financial expense -51 -42 Tax -60 -74 Consolidated net income from continuing operations, Group share 96 145 Net income from discontinu
Slide 41: Simplified H1 & H2 2021 P&L vs. 2020
SIMPLIFIED H1 & H2 2021 P&L VS. 2020 €m H1 2020 H2 2020 H1 2021 H2 2021 Revenue 2,849 4,642 3,465 4,578 Gross margin 844 1,342 1,029 1,345 % Revenue 29.6% 28.9% 29.7% 29.4% Total costs -902 -1,069 -995 -1,108 % Revenue 31.7% 23.0% 28.7% 24.2% Current operating income -58 273 34 237 Non-current opera
Slide 42: Balance Sheet
BALANCE SHEET Assets in €m FY 2020 FY 2021 Equity and Liabilities in €m FY 2020 FY 2021 Goodwill 1,654 1,654 Share capital 27 27 Intangible assets 506 528 Reserves related to equity 971 971 Conversion reserves -5 -6 Tangible assets 594 575 Other reserves 375 563 Rights of use relating to lease agree
Slide 43: Store Network
STORE NETWORK December 31, 2020 December 31, 2021 Owned Franchised Total Owned Franchised Total France and Switzerland(1) 412 339 751 413 385 798 Iberian Peninsula 67 5 72 69 5 74 Belgium and Luxembourg 85 0 85 85 0 85 Group 564 344 908 567 390 957 1 Including 14 stores outside France: 4 in Tunisia,
Slide 44: 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