Ceconomy Ag · XETR:CEC
Ceconomy — Shareholder Meeting (February 2021)
30 slides from Ceconomy's shareholder meeting presentation, Feb 17, 2021
Slide 1: General Meeting 2021
General Meeting 2021 17 February 2021 Date: 15 Dec 2020 // 1
Slide 2: Disclaimer and Notes
Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation (including all to purchase or subscribe to, any securities in any jurisdiction. Neither this Historical financial information contained in this presentation is mostly based slides of this document), the oral
Slide 3: Our financial year 2019/20 was challenging and directional
Our financial year 2019/20 was… …challenging and directional. // 3 Date: 15 Dec 2020 // 3
Slide 4: Overall, it was characterized by light and shade – but we successfully mastered this situation
Overall, it was characterized by light and shade – but we successfully mastered this situation OCTOBER 19 - FEBRUARY 20 MARCH 20 - MAY 20 JUNE 20 - SEPTEMBER 20 Pre-COVID Lockdown Phase Post-Lockdown Profitable Black Friday period Immediate mitigation measures Strong sales momentum Progress
Slide 5: Robust performance in FY 2019/20 despite COVID-19
In conclusion, despite COVID-19 implications, we have shown a robust performance in FY 2019/20 -1.8% 20.8 €bn 236 €m Sales1 development Total Sales1 Adj. EBIT2 excl. associates 1Adj. for currency & portfolio change effects. 2Adj. for portfolio changes and excl. non-recurring effects in connection wi
Slide 6: Accelerated growth in online business driven by COVID-19
Accelerated growth in online business driven by COVID-19 Online sales1 Online sales1 vs. total sales2 growth (in €m) (yoy change) Online sales Total sales +44.1% 209% 4,198 133% 2,913 58% 50% 6% 1% 3% 9% -28% 13.7% in % of sales 20.2% -43% FY 2018/19 FY 2019/20 PRE-COVID MAR APR MAY POST- LOCKDOWN N
Slide 7: Services & Solutions sales impacted by COVID-19, but still with plenty of potential
Services & Solutions sales impacted by COVID-19, but still with plenty of potential Services & Solutions sales1 (in €m) -7.6% CLOSED COVID-19-related store closures weighed on Services & Solutions 1,220 sales 1,127 Warranty extensions with strong growth, also due to new offering Financing impacted b
Slide 8: Non-cash impairment of Fnac Darty stake substantially impacted reported EBIT
Non-cash impairment of Fnac Darty stake substantially impacted reported EBIT Adj. EBIT1 excl. associates to reported EBIT in FY 19/20 (in €m) Essentially related to Fnac Darty impairment 236 (268 €m) -49 -267 -80 -211 ADJ. EBIT NON-RECURRING OTHER ADJ. ITEMS REPORTED EFFECTS (PORTFOLIO, ASSOCIATES)
Slide 9: We are coming out of the last financial year with a lot of confidence
We are coming out of the last financial year with a lot of confidence and tailwind. The pandemic was both a test and an opportunity driver for us. Today, we are no longer the company we were before the beginning of 2019. We have made great strides in a relatively short time. // 9 Date: 15 Dec 2020 /
Slide 10: Strong first quarter of the new financial year despite COVID-19 restrictions
Strong first quarter of the new financial year despite increasing COVID-19-related restrictions and local temporary store closures +11.4% Sales1 development 346 €m Adj. EBIT2 excl. associates 1Adj. for currency & portfolio change effects. 2Adj. for portfolio changes and excl. non-recurring effects i
Slide 11: Outlook for the rest of FY 2020/21 subject to significantly increased uncertainties
Outlook for the rest of FY 2020/21, however, subject to significantly increased uncertainties due to prolonged temporary store closures Initial assumptions1 Knowns Current situation2 Q1 results are a major step to reach FY No further extensive temporary guidance closures of the stationary busine
Slide 12: Strategy update / Transaction with Convergenta
In the last financial year, we have also set a decisive course for the future Transaction with Strategy update Convergenta // 12 Date: 15 Dec 2020 // 12
Slide 13: In 2019, we have already done a reset and put the focus on relentless execution
In 2019, we have already done a reset and put the focus on relentless execution OMNI- SERVICES & CATEGORY & ORGANIZATION & CHANNEL SOLUTIONS SUPPLY CHAIN COST STRUCTURES MANAGEMENT // 13 Date: 15 Dec 2020 // 13
Slide 14: Strategy update: Our way forward
Strategy update: Our way forward Accelerate Growth Path Build a Unique Value Proposition Create an Efficient Organization and Structure FY 19/20 Results & Strategy Update Public // 14 Date: 15 Dec 2020 // 14
Slide 15: We continue to build Europe's largest omnichannel network
We continue to build Europe’s largest omnichannel network as basis for our future growth Benefits Our Operating Model cornerstones Customer centricity Cost efficiency Scalability and fast implementation Already implemented: Centralized & standardized Global IT platforms Global logistics organization
Slide 16: We will strengthen our position as category authority
We will strengthen our position as category authority, and provide superior convenience and experience based on our omnichannel model Category Management Services & Solutions Omnichannel experience Logistics Date: 15 Dec 2020 // 16 // 16
Slide 17: We build platforms for new income pools to accelerate our growth
We build platforms for new income pools to accelerate our growth Marketplace B2B business Marketing services New membership club Date: 15 Dec 2020 // 17 // 17
Slide 18: Sustainability moves further into focus
Sustainability moves further into focus 75% Environmental Reduction of direct carbon emissions1 vs. 2015 baseline 80% Green electricity usage across the Group 2.9 m Social Repairs across the Group, 50% of total German e-waste recycled Diversity With employees from 128 nations across the Grou
Slide 19: Strategy update / Transaction with Convergenta
In the last financial year, we have also set a decisive course for the future Transaction with Strategy update Convergenta // 19 Date: 15 Dec 2020 // 19
Slide 20: Message from Jürgen Kellerhals
Message from Jürgen Kellerhals „Our agreement marks a new stage of long-term cooperation. Convergenta wants to continue to accompany the company's successful path.“ // 20 Date: 15 Dec 2020 // 20
Slide 21: Simplified governance & structure with Convergenta as anchor shareholder
Simplified governance & structure with MediaMarktSaturn as a wholly-owned subsidiary and Convergenta as an anchor shareholder of CECONOMY Post-closing situation based on voting rights1 Meridian Haniel freenet Beisheim Streubesitz Stiftung 22.5% 14.2% 9.1% 6.6% 47.6% Convergenta Meridian Convergenta
Slide 22: Analyst comments after the announcement of the Convergenta transaction
Analyst comments after the announcement of the Convergenta transaction on 14 December 2020 “In our view, the price paid (EUR815m total “This is a game-changer for the group as it consideration) is reasonable.” means simplification, an easier decision making processes and, finally, it unlocks values
Slide 23: Company valuation of Media-Saturn-Holding GmbH (MSH)
Company valuation of Media-Saturn-Holding GmbH (MSH) in €m DISCOUNTED CASHFLOW CALCULATION – MSH 2020/21 (Proj.) 2021/22 (Plan) 2022/23 (Plan) from 2023/24 (TV1) EBITDA 907.5 1,268.5 1,323.5 1,330.1 After deduction of fictious corporate taxes, capital expenditures, change in NWC and profit attributa
Slide 24: Company valuation of CECONOMY
Company valuation of CECONOMY in €m DISCOUNTED CASHFLOW CALCULATION – CECONOMY 2020/21 (Proj.) 2021/22 (Plan) 2022/23 (Plan) from 2023/24 (TV1) EBITDA 907.5 1,268.5 1,323.5 1,330.1 After deduction of fictious corporate taxes, capital expenditures, change in NWC and profit attributable to non-control
Slide 25: Assessment of the appropriateness of the issue price
Assessment of the appropriateness of the issue price CECONOMY DCF VALUE PER SHARE OF EXISTING SHAREHOLDERS BEFORE TRANSACTION Equity value of CECONOMY (in €m) 2,565.5 Number of shares before transaction (in mio.) 359.4 CECONOMY value per share (in €) 7.14 REASONABILITY CHECK BASED ON CECONOMY STOCK
Slide 26: DCF value per share after transaction
DCF value per share after transaction CECONOMY DCF VALUE PER SHARE AFTER TRANSACTION Equity value of CECONOMY (in €m) 2,565.5 Plus value of MSH minority share incl. minimum synergies and after deduction of cash component: Equity value of CECONOMY after transaction (in €m) 3,782.6 CECONOMY value per
Slide 27: Value inflow from capital increase through contributions in kind and convertible bonds
Value inflow from capital increase through contributions in kind and convertible bonds Value of the MSH minority interest 1,347.1 incl. minimum synergies (in m€) After deduction of cash component: Value inflow (in €m) 1,217.1 Value of consideration (in €m) 1,057.9 // 27 Date: 15 Dec 2020 // 27
Slide 28: Summary
Summary 01 02 We operate in an We have excellent attractive market foundations through our omnichannel model 03 04 We have laid the right We have a lot of potential foundations for further for growth transformation // 28 Date: 15 Dec 2020 // 28
Slide 29: Thank you, Jürgen Fitschen
Thank you, Jürgen Fitschen // 29 Date: 15 Dec 2020 // 29
Slide 30: Date: 15 Dec 2020
Date: 15 Dec 2020 // 30