Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — H1 2024 Earnings Presentation
33 slides from Fnac Darty Sa's earnings presentation, Jul 24, 2024
Slide 1: Half-Year Results July 24, 2024
2024 HALF-YEAR RESULTS JULY 24, 2024
Slide 2: Agenda
Agenda H1 2024 STRATEGIC REVIEW Enrique Martinez, Chief Executive Officer 6:00 pm H1 2024 FINANCIAL RESULTS Jean-Brieuc Le Tinier, Chief Financial Officer 6:15 pm CONCLUSION AND Q&A SESSION 6:30 pm 2
Slide 3: Strategic Review
STRATEGIC REVIEW Enrique Martinez Chief Executive Officer
Slide 4: H1 2024 Key message
H1 2024 Key message Resilience in a Execution against the challenging market strategic plan ▪ H1 performance in line with ▪ Group’s ESG commitments: expectations rating improvement, ranked #2 in the specialized retail sector2 ▪ All geographies returning to growth in Q2 ▪ 2024 outlook confirmed ▪ Con
Slide 5: Envisaged Unieuro Acquisition
ENVISAGED UNIEURO ACQUISITION Enrique Martinez Chief Executive Officer &
Slide 6: Transaction rationale
Transaction rationale & 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 strategic fit wi
Slide 7: 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 ▪ €12.0 per share representing a premium of 42% over spot VWAP and a premium of 34% over 3m VWAP3
Slide 8: Combined revenue and adjusted EBIT
2023 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 1 Corresponds to EBIT adjusted for (i) non-recurring expenses/(inc
Slide 9: 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 debt3 Ca
Slide 10: Indicative transaction timeline
Indicative transaction timeline Expected completion in Q4 2024 Announcement Offer Offer filing Offer closing Integration July 16, 2024 opening > END OF JULY / EARLY AUGUST END OF AUGUST / SEPTEMBER Q4 2024 Approval by Italian Market Authority Competition and other regulatory approval 10
Slide 11: H1 2024 Financial Results
H1 2024 FINANCIAL RESULTS Jean-Brieuc Le Tinier Chief Financial Officer
Slide 12: H1 2024 Key financials
H1 2024 Key financials Resilience … … in a market gradually returning to growth 12,00% Banque de France ▪ Stable gross margin (31%) 8,00% Fnac Darty ▪ Tight cost control, stability excl. 4,00% MediaMarkt integration 0,00% ▪ Current Operating Income stable -4,00% yoy -8,00% 2021 2022 Q1 2023 Q2 2023
Slide 13: H1 2024 Revenue and gross margin
H1 2024 Revenue and gross margin ▪ H1 2024 Revenue up by 1.4% on a reported basis at % LFL €3,390 million €m H1 2023 H1 2024 change1 ▪ By channel: 21% online sales o/w 51% using Click&Collect (+1.9 pt vs H1 2023) Revenue 3,344 3,390 +0.1% ▪ By product category: ▪ Editorial products impacted by high
Slide 14: Tight cost control
Tight cost control 1 075 ENERGY COSTS ENERGY CONSUMPTION1 -65% -€3m -14% H1 2023 H1 2024 H1 2023 H1 2024 1,075 1,072 1,086 HR COSTS RENT COSTS +5% +7% H1 2023 H1 2024 H1 2023 H1 2024 1 Electricity consumption, France. 14
Slide 15: H1 2024 Group financial results
H1 2024 Group financial results €m H1 2023 H1 2024 change Current operating income (35) (36) - ▪ Current Operating Income stable – Gross margin and OPEX stable Non-current operating income and – Slightly improving excluding MediaMarkt (100) (27) expenses integration and Weavenn ramp-up Operating inc
Slide 16: H1 2024 Free cash flow from operations
H1 2024 Free cash flow from operations €m H1 2023 H1 2024 EBITDA 143 146 ▪ EBITDA Flat IFRS 16 impact (128) (125) ▪ WCR increase linked to unfavorable Non-current cash items and seasonality and MediaMarkt (12) (21) EBITDA non-cash items integration Cash-flow before tax, dividends and interest, exclu
Slide 17: Sound Financial structure
Sound Financial structure Dec. 31, Jun. 30, €m 2023 2024 ▪ Strong equity position Shareholders’ equity 1,538 1,459 Net debt1 (198) 496 ▪ Covenants met at 30 June: 1.8x EBITDA Gross financial debt 923 1,078 ▪ Successful refinancing of 2024 and 2026 Cash and cash equivalents 1,121 583 senior notes: €5
Slide 18: Conclusion & Outlook
CONCLUSION & OUTLOOK Enrique Martinez Chief Executive Officer
Slide 19: Fnac Darty & Unieuro: a unique & transforming opportunity
& : 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 Employee
Slide 20: Closing remarks
Closing remarks Satisfying ▪ Solid performance despite low level of consumers’ spending achievements in H1 ▪ All geographies returning to growth in Q2 in a flattish ▪ Gross margin increase by 10 bps excluding dilutive impact from environment franchise and change in perimeter ▪ Tight cost control Vol
Slide 21: Outlook confirmed
Outlook confirmed ▪ As communicated, growth is expected to pick up in 2024, supported by the declining inflation and savings rate level. ▪ Q2 2024 business activity returning to growth in all geographies. ▪ The Group reaffirms its guidance (excluding envisaged Unieuro acquisition): Current Operating
Slide 22: Q&A
Q&A
Slide 23: Appendices
APPENDICES FNAC DARTY
Slide 24: 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 operating i
Slide 25: 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 26: Cash-flow statement
Cash-flow statement €m H1 2023 H1 2024 Net Cash as of 1 January excl. IFRS 16 (5) 198 Operating free cash-flow (excl. IFRS 16) (660) (673) Dividends paid 0 (5) Shareholders’ equity component 0 2 Interest paid net of interest and dividends received (13) (10) Acquisition/disposal of subsidiaries net o
Slide 27: Simplified P&L
Simplified P&L €m H1 2023 H1 2024 Revenue 3,344 3,390 Current operating income (35) (36) Non-current operating income and expenses (100) (27) Operating income (136) (63) Financial expense (44) (37) Tax 19 27 Consolidated net income from continuing operations, Group share (163) (75) Net income from d
Slide 28: Balance sheet
Balance sheet Assets in €m Dec. 31, 2023 Jun. 30, 2024 Equity and Liabilities in €m Dec. 31, 2023 Jun. 30, 2024 Goodwill 1,680 1,680 Share capital 28 28 Reserves related to equity 987 987 Intangible assets 566 560 Conversion reserves (6) (6) Tangible assets 544 465 Other reserves 513 434 Rights of u
Slide 29: Everyday main CSR KPIs
Everyday main CSR KPIs KPIs 2022 2023 2025 targets Durability score1 115 118 135 Number of products repaired 2.3m 2.5m 2.5m Proportion of Women in the Top 200 managers 30% 33% 35% Share of women in the Executive Committee 42% 42% >40% 1 Average of a reliability score and a repairability score, based
Slide 30: Store network
Store network December 31, 2023 June 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, 3 in
Slide 31: ESG ratings
ESG ratings Agencies 2020 2021 2022 2023 48/100 54/100 61/100 65/100 11.5 11.4 12.0 12.8 Low ESG risks AA AA AA AA C A- A- A- 31
Slide 32: 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 33: Fnac Darty
FNAC DARTY