Teract · EURONEXT:TRACT
Teract — Investor Presentation (December 2023)
36 slides from Teract's investor presentation, December 2023
Slide 1: Investor Presentation December 2023
Investor Presentation DECEMBER 2023
Slide 2: Contents
Contents 01 TERACT at a glance 02 Review of activities 03 2022-2023 Financial 04 highlights Corporate Social 05 Responsibility (CSR) Strategy and outlook 06 Conclusion 2
Slide 3: TERACT at a glance
TERACT at a glance TERACT
Slide 4: Founders' vision for TERACT
Founders’ vision for TERACT Pooling of the founders’ respective Serving as an incubator for high added well-known strengths in farming, retail value and renown gardening & food and innovation with the ambition to create brands, concepts and banners, within a leading specialized retail platform, alre
Slide 5: A sound shareholding structure
A sound shareholding structure • Combination of agricultural, food and retail expertise of InVivo Group / InVivo Retail with the 2MX Organic SPAC in 2022: TERACT shareholders • InVivo Group: #1 agricultural cooperative in France (more than half of French farmers) / #2 in Europe with the InVivo Retai
Slide 6: Consistent building of an innovative retail platform over the years
Consistant building of an innovative retail platform over the years 1977 2014 2017 2018 2019 2020 2021 2022 2023 Creation of First opening of Acquisition and Acquisition Launch of the Integration of Initiation of the InVivo Retail and TERACT adopts Gamm Vert a food retail integration of of Jardiland
Slide 7: A specialist retail platform with complementary businesses
A specialist retail platform with complementary businesses • Multi-banner specialist with strong Garden centre and Pet Retail Food Retail concepts and brands • Businesses offering complementary €808.6M 1,576 87% €93.5M 138 7% Revenues stores franchised Revenues stores franchised seasonality, strong
Slide 8: Complementary retail businesses with strong growth perspectives
Complementary retail businesses with strong growth perspectives Gardening E-commerce Fresh market retail Good growth prospect of Recently developed the gardening ecommerce business, set to grow Historical business with in France: overall share of at a fast pace: total French a leading positioning in
Slide 9: Complementary stores' locations
Complementary stores’ locations Renuion Island French Antilles 80% New Caledonia of the French population lives less than 20mn away from a TERACT point of sale 9
Slide 10: Responsible and sustainable consumption at the heart of the growth model
Responsible and sustainable consumption at the heart of the growth model Demand for Client-centric next-generation approach consumption 4 customer types Quality in gardening Durability and petshops Traceability Enhancing the Convenience in-store shopping and value-chain experience integration throug
Slide 11: Review of activities
a} Review of activities TERACT
Slide 12: Leadership in gardening retail and developing petfood retail
Comforting leadership in Gardening retail Garden centre and Pet Retail and developing petfood retail Gamm vert Delbard French leader with 1,153 stores, Garden center banners focused 92% franchised, €1,349.9M of GMV; on gardening design and located historical player (since 1977) in various type of ar
Slide 13: Deploying the fresh food offering
Deploying the fresh Food offering Food Retail Grand Marché Frais d’Ici La Marnière Fresh market stores Fresh covered market • 9 corners with premium stores positioning operated by local • 3 stores in the Paris area, Bio&Co • agricultural cooperatives Associated to Gamm vert acquired in 2022, 100% ow
Slide 14: Building a leading network in bakery and snacking
Building of a leading network in bakery Food Retail and snacking Boulangerie Louise • Acquisition of Boulangerie Louise in 2022 • #3 bakery and snacking network in France with 128 stores (North, West and Greater Paris area), mainly owned • 75 bakery, pastry and snacking skus; 100% of bread kneaded,
Slide 15: 2022-2023 Financial highlights
2022-2023 Financial highlights 03 15
Slide 16: 2022-2023 key financial highlights: foreword on the key figures
2022-2023 key financial highlights Foreword on the key figures TERACT’s 2022-2023 consolidated financial statements have been exceptionally impacted by a listing expense as a result of the merger of InVivo Retail with SPAC 2MX Organic. This listing expense was recognised as a non-cash listing servic
Slide 17: Key financial highlights: Revenues
2022-2023 key financial highlights Revenues Consolidated revenue : €902.1M, +10.9% vs 2021-2022 (in €M) 2022-2023 2021-2022 o/w -1.9%(1) on a comparable basis 12 months 9 months (2) Garden centre / Pet retail revenue of €808.6M, Revenue 902.1 648.9 growing +1.7% o/w -1.8% on a comparable basis: Adju
Slide 18: Key financial highlights: Adjusted EBITDA
2022-2023 key financial highlights Adjusted EBITDA Adjusted EBITDA : €67.5M (in €M) 2022-2023 2021-2022 • Higher energy costs partially offset by the power 12 months 9 months sobriety plan: -30% of energy saved thanks to the Revenue 902.1 648.9 energy consumption management platform Adjusted EBITDA
Slide 19: Key financial highlights: Net income
2022-2023 key financial highlights Net income Net income, group share : €(106.6)M, after: (in €M) 2022-2023 2021-2022 • Non-current items for €(92.7)M, including the 12 months 9 months recognition in 2022-2023 of f a non-cash listing Revenue 902.1 648.9 service charge of €(91.4)M as part of the comb
Slide 20: Free cash flow & net financial debt
2022-2023 key financial highlights Free cash flow & net financial debt Free cash flow: €56.8M Net financial debt of €447.4M up yoy in relation to : • Focusing financial priorities on cash generation • Development of the Food Retail activity • Sound cost and inventory management with the acquisition
Slide 21: Corporate Social Responsibility
Corporate Social Responsibility 04 21
Slide 22: A raison d'être embodying the Group's values and actions
A « raison d’être » embodying the Group's values and actions With each day bringing further evidence of the growing need to radically overhaul human production and consumption methods, TERACT has adopted a “raison d’être” in alignment with its goals under the PACTE Law with the aim of reshaping the
Slide 23: Leveraging on the 3 CSR strategy pillars
Leveraging on the 3 CSR strategy pillars Products Engaging the stakeholders Building a range of healthy, Engaging employees and stakeholders across responsible products and services the Group to achieve our social ambitions and and providing access to them Activities meet new consumer expectations C
Slide 24: Commit to strong CSR targets by 2030
Commit to strong CSR targets by 2030 2022-2023 (1) results Products By 2025, 80% of exclusive own brands with a positive impact 54.4% Products and packaging Activities By 2025, a 50% less workplace accidents vs 2020 (i.e. TF 15 vs 30) 27.8 By 2030, a 46% reduction in scope 1 & 2 in greenhouse gas em
Slide 25: Focus 1 – Environment preservation
Focus 1 – Environment preservation “CITRON plan” : monitoring of electrical consumption in real time in stores via a platform Test to install solar panels on store locations Deployment of the power sobriety (16 in trial so far) plan: raise awareness of employees, reduce the heating temperature, redu
Slide 26: Focus 2 – Employees and customers well-being
Focus 2 – Employees and customers well-being 54,4% of the reference of own-brand products A comprehensive training offering… with a positive impact 1,800 references tested on 5 criteria: Bienvenue “Managers par nature” Digic@ampus 01 Origin of manufacture Campus Nature & talents 02 Production condit
Slide 27: Focus 3 – Sector strategy with Boulangerie Louise supply chain
Focus 3 – Sector strategy: leading by example with Boulangerie Louise supply chain Ambition to become the #1 bakery network to include the wheat sector Strong commitment to commitment to reduce its support the transition of Carbon footprint through French agriculture: a unique innovative farming lev
Slide 28: Strategy and outlook
Strategy and outlook TERACT
Slide 29: New commercial strategy for Gardening and Petfood & petcare retail
New commercial strategy for Gardening and Petfood & petcare retail based on offer evolution and own brand development Focused on the Strong Fluid omni- end-user private label channel An optimized experience development distribution primarily focused on end-users and not Shift to a more balanced Sign
Slide 30: Food share to continue to increase in the mix
Food share to continue to increase in the mix Food share to continue to grow Continuous optimisation in the mix of the garden centres network 01 Acquisition of Boulangerie Louise 01 Reshuffling of existing stores 02 New stores opening 02 Development of franchise 03 Development of Franchise 03 Organi
Slide 31: Further omni-channel & digital strategy
Further omni-channel & digital strategy based upon existing strong assets Reshuffling of the Building of a multi-brand Click-and-collect existing platforms marketplace optmisation Reshuffling of existing online tools Transformation towards a unique Recently launched on Jardiland.com for optimized cu
Slide 32: 2023-2024 operating and financial outlook (1/2)
2023-2024 operating and financial outlook (1/2) Amid persistent macroeconomic pressures in the second half of 2023 (first half of TERACT’s 2023-2024 financial year) and uncertainty as to how the situation will evolve in the first half of 2024 (second half of TERACT's 2023-2024 financial year), the G
Slide 33: 2023-2024 operating and financial outlook (2/2)
2023-2024 operating and financial outlook (2/2) This will be underpinned by an attractive omnichannel model that is a leader in the sector in France, as part of an overhaul of the e-commerce websites and a focus on stores put back at the core of the digital strategy, through the repayment of the rev
Slide 34: Conclusion
34 Conclusion TERACT
Slide 35: The best placed retailer to capture new consumption habits
The best placed retailer to capture new consumption habits On-going offer transformation Opportunity to invest in a with own brand development unique retail platform, at the and supply chain optimization to heart of new consumption increase profitability habits with a unique portfolio of powerful co
Slide 36: Disclaimer
Disclaimer This document has been prepared for information purposes only. This document does not constitute an offer to sell nor a solicitation to purchase TERACT shares in any country, including France. The dissemination, publication or distribution of this document may be subject to specific regul