Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (May 2024)
45 slides from Fnac Darty Sa's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
INVESTOR PRESENTATION MAY 2024
Slide 2: Leading European omnichannel retailer with a diverse and balanced range of products and services
LEADING EUROPEAN OMNICHANNEL RETAILER WITH A DIVERSE AND BALANCED RANGE OF PRODUCTS AND SERVICES 2023 revenue breakdown by category €7.9bn Group revenue in 2023 – ~25,000 employees 15% Consumer electronics Top European omnichannel retailer Editorial products • 70 million+ checkout transactions 20% 4
Slide 3: Our strategy built to strengthen our positioning and capture growth
OUR STRATEGY BUILT TO STRENGTHEN OUR POSITIONING AND CAPTURE GROWTH Build a digitized omnichannel retail • Best-in-class online capacities Lead durable behaviors • A profitable and digitized store network • A more sustainable offer, combined • A high-value offer with customers’ orientation towards s
Slide 4: Build a digitized omnichannel retail
BUILD A DIGITIZED OMNICHANNEL RETAIL Best-in-class online capacities A profitable and digitized store network, fostering the expertise of salespeople and digital footprint An uncompromised acceleration to offer high-value products to all 50% 100% of online revenue of stores from Click & Collect prof
Slide 5: 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 135 c.2.5M “sustainability score” products repaired by 20251 in 20252 5 1. Products durability scores weighted by
Slide 6: 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 1M >2M subscribers at subscribers end-Sept 2023 by 2025 6
Slide 7: Fnac Darty profile in 2025
FNAC DARTY PROFILE IN 2025 135 c.2.5m -50% “Durability score” Products repaired in 20256 Transport & energy CO2 by 20255 emissions in 2030 vs 2019 >30% >2M 100% Online revenue penetration Subscribers to our unlimited repairs Stores profitable by 20251 by 2025 subscription program by 2025 Conservativ
Slide 8: Ensuring sustainable shareholder returns
ENSURING SUSTAINABLE SHAREHOLDER RETURNS Increased Fund profitable growth Free Cash Flow Reinvest in the business Opportunity-driven decision Tactical bolt-on M&A + + Incremental shareholder return Leverage1 of max 2.0x Via special dividend or Controlled net debt Shareholder return policy share buyb
Slide 9: Full-year results 2023
2023 FULL-YEAR RESULTS yy, FNAC DARTY
Slide 10: Market context
MARKET CONTEXT DOMESTIC APPLIANCES Change in VALUE of the French market Change in VOLUME of the French market (base of 100 in 2019) (base of 100 in 2019) CONSUMER ELECTRONICS EDITORIAL PRODUCTS 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 A retail sector undergoing a profound transformation, wi
Slide 11: Resilience despite a very challenging environment
RESILIENCE DESPITE A VERY CHALLENGING ENVIRONMENT CHALLENGES SUCCESSES Lower market volumes Flat revenue Gross margin maintained High inflation and interest Strong cost management Solid FCF generation rates Consumer confidence at a Initiatives to drive future Portugal acquisition 10-year low(1) grow
Slide 12: Resilient revenue performance sustained by an acceleration in H2 2023
RESILIENT REVENUE PERFORMANCE SUSTAINED BY AN ACCELERATION IN H2 2023 Resilient revenue: €7,875 million in 2023 % LFL1 €m 2022 2023 change • Down by -0.9% on a reported basis and -1.1% on a LFL basis1 compared to 2022 mainly due to lower sales volumes Revenue 7,949 7,875 (1.1)% • Strong momentum in
Slide 13: Tight monitoring of cost base despite inflation
TIGHT MONITORING OF COST BASE DESPITE INFLATION Stable gross margin excl. dilutive impact of the Cost inflation mitigated by proactive measures franchises thanks to our positioning and services (especially performance plans) growth • Cost rises by +1.4% vs French inflation at +4.0%1 • Fnac Darty man
Slide 14: Group financial results
GROUP FINANCIAL RESULTS €m 2022 2023 change Current Operating Income down €60m: lower sales, OPEX increase (energy cost and inflation Current operating income 231 171 (60) not fully compensated by performance plans) Non-current operating income and (27) (131) expenses Operating income includes a €10
Slide 15: 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) 173 192
Slide 16: A well-balanced capital structure
A WELL-BALANCED CAPITAL STRUCTURE €m 2022 2023 Way back to a net cash position to €198m excl. Shareholders equity 1,523 1,538 IFRS 16 Net cash (5) 198 Strong liquidity position of €1.7bn end Dec. 2023 Gross financial debt 937 923 Cash and cash equivalents 932 1,121 Shareholders’ return Leasing debt
Slide 17: Long-dated debt maturity profile
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 • RCF: €500m maturing in March 2028 with extension EIB loan
Slide 18: Q1 highlights
Q1 HIGHLIGHTS Revenue Gross margin €1,793M + 30bps +0.7% vs Q1 2023 vs Q1 20231 Click&Collect New Bond issuance 51% €550m of Q1 2024 online sales 2029 senior notes 18 1 Excluding dilutive impact from franchise.
Slide 19: Resilient revenue and gross margin
RESILIENT REVENUE AND GROSS MARGIN Q1 2024 revenue growth by region Q1 2024 revenue at €1,793m, +0.7% on a reported basis and down -0.8% on a like-for-like basis1 compared with Q1 2023 -0,7% France and Switzerland Mixed sales performance -0,7% • By region: resilience in all geographies. Spain recove
Slide 20: Outlook
yy, OUTLOOK FNAC DARTY
Slide 21: Outlook
OUTLOOK Fnac Darty will: • Outperform its markets thanks to its operational agility and its omnichannel model • Maintain its gross margin level thanks the relevance of its offer and the growing contribution of services • Pursue tight cost control thanks to the performance plans • Maintain a solid li
Slide 22: Q&A
Q&A
Slide 23: Appendices
APPENDICES FNAC DARTY
Slide 24: Unequalled omnichannel capabilities with digital platform and store network
UNEQUALLED OMNICHANNEL CAPABILITIES WITH DIGITAL PLATFORM AND STORE NETWORK 1,010 1 14 websites stores 84 in Belgium / Luxemburg own global 838 in France / Switzerland 1 Marketplace platform 88 in Spain / Portugal >27M unique visitors per month in France (#2)2 78% 22% of which 50% using Click&Collec
Slide 25: Product diversification with focus on most attractive segments
PRODUCT DIVERSIFICATION WITH FOCUS ON MOST ATTRACTIVE SEGMENTS A wide range of products and services Unrivalled leadership on our markets Consumer electronics Domestic appliances #1 #1 47% * 20%* Bookstore Record store Editorial products Other products and Services #1 #1 18% * 15% * Repairer Player
Slide 26: 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 27: Pioneering and leading educated choice
PIONEERING AND LEADING EDUCATED CHOICE CULTURE TECHNOLOGY DURABLE BEHAVIORS LaboFnac: A unique concept since 50 years After-Sales Service Barometer (96 product families reviewed) • 939 tests done in 2023 on 531 products, using objective methods “Le choix durable” to guide customers towards more reli
Slide 28: Giving products a second life
GIVING PRODUCTS A SECOND LIFE GMV 2023 ~€120M (+30% vs 2022) Customer returns Fnac Darty Quality 2 years warranty Refurbished products Damaged products 3 packaging DEDICATED Eligible for Services Up to 50% cheaper REFURBISHING Display models UNITS Non-functional products from after-sales services Bu
Slide 29: Strategic initiatives to boost the marketplace
STRATEGIC INITIATIVES TO BOOST THE MARKETPLACE + PLATFORM BACKSOURCED AND BACK OFFICE MERGER 2024 2025 > 3,600 vendors FULFILLMENT FULL STACK SAAS SOLUTIONS MARKETPLACE From J+5 to J+1 delivery ≈ 35M C&C, installation, After sales / repair active offers OVER THE NEXT 5 YEARS: > €200M sales DOUBLE-DI
Slide 30: Weavenn: a strategic JV addressing the European market
WEAVENN: A STRATEGIC JV ADDRESSING THE EUROPEAN MARKET Combined skills and expertise in European market that can be Existing technical assets to accelerate the e-commerce, fulfillment and addressed and is valued at around deployment of a complete Marketplace transport. €80bn1, estimated CAGR > 10% a
Slide 31: Retail media: high value-added services to drive growth
RETAIL MEDIA: HIGH VALUE-ADDED SERVICES TO DRIVE GROWTH DOOH Revenue Campaigns ~€90M > 1,600 DIGITAL In 2023 since 2021 Revenue growth Operating Margin +40% +40% 2019-2023 2019-2023 INSTORE LEVERAGING THE GROUP’S OMNICHANNEL LEADERSHIP 31
Slide 32: Accelerate our digital transformation
ACCELERATE OUR DIGITAL TRANSFORMATION DATA-CENTRIC CORNERSTONE PARTNERSHIP • Best-in-class search: Google Cloud Retail Search on our websites + • Enhanced capabilities for AI and Datascience: AI, Machine Learning, LLM, tools, analytics LAUNCH OF 1st GENERATIVE AI TESTS AND EXPERIENCE ACROSS DEPARTME
Slide 33: Sustainable value creation
SUSTAINABLE VALUE CREATION 2023 KEY ACHIEVEMENTS -26% Reduction in CO2 emissions from energy and transport -17% Reduction in electricity consumption 2.5M Products repaired 118 Sustainability Score 33% Part of women in the Leadership Group1 A- Amongst 22% of companies that reached Leadership level 33
Slide 34: Commitment to customer satisfaction and people development
FNAC DARTY IS STRONGLY COMMITED TO IMPROVE CUSTOMER TO DEVELOP ITS MOST SATISFACTION VALUABLE ASSET: PEOPLE NPS +2 pts vs 2022 94% of employees trained Rewards for sustainable behaviors (2nd life, C&C, etc.), partner pass 27 apprentices class launched New Brand platform and TV 236 technicians traine
Slide 35: 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 36: 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 37: 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 38: ESG ratings
ESG RATINGS Agencies 2020 2021 2022 2023 48/100 54/100 61/100 n/a 11.5 11.4 12.0 12.8 Low ESG risks AA AA AA AA C A- A- A- 38
Slide 39: Cash flow statements
CASH FLOW STATEMENTS €m 2022 2023 Net Cash as of January 1 excl. IFRS 16 247 (5) Operating free cash-flow (excl. IFRS 16) (30) 180 Dividends paid (55) (21) Shareholders’ equity component – OCEANE bonds 0 0 Interest paid net of interest and dividends received (28) (26) Acquisition/disposal of subsidi
Slide 40: 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 41: Simplified P&L (H1 & H2)
SIMPLIFIED P&L (H1 & H2) €m H1 2022 H2 2022 H1 2023 H2 2023 Revenue 3,428 4,521 3,344 4,531 Current operating income 19 212 (35) 206 Non-current operating income and expenses (14) (13) (100) (30) Operating income 5 199 (136) 176 Financial expense (18) (27) (44) (35) Tax (3) (51) 19 (49) Consolidated
Slide 42: Balance sheet
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 use r
Slide 43: Store network
STORE NETWORK December 31, 2022 December 31, 2023 Owned Franchised Total Owned Franchised Total France and Switzerland1 412 414 826 407 431 838 Iberian Peninsula 69 6 75 82 6 88 Belgium and Luxembourg 86 0 86 84 0 84 Group 567 420 987 573 437 1,010 1 Including 16 stores abroad (1 in Saudi Arabia, 3
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
Slide 45: Fnac Darty
FNAC DARTY