Slide 1: Results Presentation Q4/FY 2021/22
Results Presentation Q4/FY 2021/22 15 December 2022
Slide 2: Disclaimer and Notes
Results Presentation Q4/FY 2021/22 on 15 December 2022 2 Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation (including constitute financial advice or recommendations. business. Given the aforementioned uncertainties, (prospective) investors are all slides of
Slide 3: Agenda
I. Review FY 2021/22 II. Financial performance III. Moving forward Agenda
Slide 4: We are moving forward
Results Presentation Q4/FY 2021/22 on 15 December 2022 4 We are moving forward We delivered our guidance – Adj. EBIT of €197 m Upper end of updated guidance reached 1 with earnings growth across all segments outside the DACH region FY 2021/22 FY 2021/22 We are relevant - Sales growth of +3.2% Guidan
Slide 5: Key developments in FY 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 5 Key developments in FY 2021/22 Financial performance Operational performance Governance / Sales growth driven by both volume / Improved customer experience further: / Strategy refreshed with “experience and price (+3.2%) NPS increased by 5 poi
Slide 6: Measures to counter inflationary pressure and support liquidity
Results Presentation Q4/FY 2021/22 on 15 December 2022 6 We initiated effective measures to counter inflationary pressure and to support our liquidity position Cost Margin and Cash Flow and management Services & Solutions Net Working Capital / “New Operating Model” completed / Improved online functi
Slide 7: We continue to successfully drive our transformation
Results Presentation Q4/FY 2021/22 on 15 December 2022 7 We continue to successfully drive our transformation Q4 PROOF POINTS Customer experience NPS improved to 52 (+5 yoy) in Q4 2021/22 Further growth of margin accretive Services & Solutions business (sales, Services & Solutions attach rate and ea
Slide 8: New brand and marketing campaign "Let's Go!"
Results Presentation Q4/FY 2021/22 on 15 December 2022 8 Our new brand and marketing campaign “Let’s Go!” (launch in 10/22) addresses our customers on multiple levels but under ONE 360°roof Image & brand “Reasons to Believe” – Services Products & offers / New brand purpose and brand / Customer advic
Slide 9: MediaMarktSaturn boosts development of retail media activities
Results Presentation Q4/FY 2021/22 on 15 December 2022 9 MediaMarktSaturn boosts development of retail media activities to strengthen an integral part of omnichannel platform attractiveness / Highly attractive market opportunity – representing the fastest growing segment in advertising / Additional
Slide 10: Agenda
I. Review FY 2021/22 II. Financial performance III. Moving forward Agenda
Slide 11: Strong sales uplift in Q4, while earnings suffered from headwinds
Results Presentation Q4/FY 2021/22 on 15 December 2022 11 Strong sales uplift in Q4, while earnings suffered from sector-related headwinds Q4 FY / Positive sales development in Q4 2021/22, Sales despite adverse environment, supported by ↗ +3.6%1 ↗ +3.2%1 elevated and focused marketing campaigns (€m)
Slide 12: Online sales in Q4 with positive development vs. comparable PY base
Results Presentation Q4/FY 2021/22 on 15 December 2022 12 Online sales in Q4 with positive development vs. comparable PY base; FY 2021/22 remains on elevated level Q4 FY Online sales ↗ +6.3% ↘ -22.9% (€m) 1,060 1,127 6,932 5,346 Sales 20.5% 21.5% 32.5% share 24.6% 2020/21 2021/22 2020/21 2021/22 / O
Slide 13: Strong double-digit sales and income growth in Services & Solutions
Results Presentation Q4/FY 2021/22 on 15 December 2022 13 Strong double-digit sales and income growth in Services & Solutions business Q4 FY Services & ↗ +22.9% ↗ +21.6% Solutions sales (€m) 390 1,340 318 1,102 Sales 7.4% 6.2% share 6.1% 5.2% 2020/21 2021/22 2020/21 2021/22 / Services & Solutions at
Slide 14: Services & Solutions sales share sustainably above pre-COVID level
Results Presentation Q4/FY 2021/22 on 15 December 2022 14 Services & Solutions sales share sustainably above pre-COVID level Services & Solutions sales share Pre-COVID = COVID restrictions 7.4% 6.6% 6.4% 6.1% 5.8% 5.7% 6.1% 6.1% 5.6% 5.2% 5.5% 5.0% 5.1% 5.0% 4.6% 4.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 15: Inflation, consumer sentiment and competition weigh on gross margin
Results Presentation Q4/FY 2021/22 on 15 December 2022 15 Inflation, consumer sentiment and intense competition weigh on gross margin development Q4 / Higher cost of goods sold, competitive environment Gross and product mix weighed on goods margin margin1 ↘ -1.0%p. (as % of 20.2% / Negative contribu
Slide 16: OPEX in Q4 2021/22 benefitted from previous cost measures
Results Presentation Q4/FY 2021/22 on 15 December 2022 16 OPEX in Q4 2021/22 benefitted from previous cost measures; further efficiency increases targeted to cope with inflationary pressures Q4 / OPEX ratio in Q4 slightly below PY level; OPEX OPEX1 increased in FY 2021/22 by c. €210 m, thereof c. €1
Slide 17: Q4 2021/22 segments: Western/Southern Europe up, DACH weak
Results Presentation Q4/FY 2021/22 on 15 December 2022 17 Q4 2021/22 with positive development in Western/Southern Europe, while weak consumer sentiment weighed on DACH segment Segments Q4 2021/22 DACH / Sales and EBIT dropped, mainly due to Western/ sector-related headwinds and pressured Eastern pr
Slide 18: Lower EPS due to impairment of Fnac Darty stake
Results Presentation Q4/FY 2021/22 on 15 December 2022 18 Lower EPS due to impairment of Fnac Darty stake, partly compensated by first-time recognition of tax benefits from Convergenta transaction EBITDA to EPS Q4 FY Reported EBIT / Q4 below PY due to operational €m 2020/21 2021/22 2020/21 2021/22 d
Slide 19: FCF development in FY 2021/22 below PY
Results Presentation Q4/FY 2021/22 on 15 December 2022 19 FCF development in FY 2021/22 below PY due to non-recurring cash outflows and to 2023 deferred NWC trend reversal Free cash flow in FY 2021/22 (€m) YOY change -81 -7 -31 -112 -38 -268 +5 -263 866 Mainly resurging advance payments and schedule
Slide 20: Prudent financial policy to maintain healthy liquidity position
Results Presentation Q4/FY 2021/22 on 15 December 2022 20 Our prudent financial policy remains high priority to maintain healthy liquidity position Cash position at end of FY Long-term financing secured ahead of rising interest rates / Access to liquidity with > €1 bn undrawn RCF, running until 2025
Slide 21: Agenda
I. Review FY 2021/22 II. Financial performance III. Moving forward Agenda
Slide 22: Short-term measures to mitigate inflationary pressure on P&L
Results Presentation Q4/FY 2021/22 on 15 December 2022 22 Short-term measures to mitigate inflationary pressure on P&L INFLATIONARY PRESSURE MITIGATING MEASURES IN FY 2022/23 Procurement & logistics costs Leverage scale & capacity (saving of low to mid double-digit m€ amount) / Slight increase in bu
Slide 23: Outlook for FY 2022/23: Guidance scenarios
Results Presentation Q4/FY 2021/22 on 15 December 2022 23 Outlook for FY 2022/23 – We are confident about the upcoming quarters: Guidance scenario 1 more likely from today's perspective FY 2022/23 FY 2022/23 FY 2021/22 Guidance scenario 1 Guidance scenario 2 Sales Slight increase1 Clear decrease1 €2
Slide 24: Positive start into peak season with strong Black Period
Results Presentation Q4/FY 2021/22 on 15 December 2022 24 Positive start into peak season with strong Black Period / Well working campaigns exceeded expectations offline and online already in the early Pre-Black- Friday trading / Black Friday demonstrates scaling power of MediaMarkt and Saturn / Cus
Slide 25: Well positioned for sales and earnings growth in mid- and long-term
Results Presentation Q4/FY 2021/22 on 15 December 2022 25 We are well positioned for sales and earnings growth in the mid- and long-term and will emerge stronger from the crisis than competition / Our actions to drive sales growth – Leverage of market leading positions – Improved customer experience
Slide 26: Summary
Results Presentation Q4/FY 2021/22 on 15 December 2022 26 Summary 1 We are in control and we take actions to master the current challenges 2 advantage of our omnichannel capabilities We focus on customer experience and take 3 Services & Solutions business We continue to grow sales and to accelerate
Slide 27: Questions & Answers
Results Presentation Q4/FY 2021/22 on 15 December 2022 27 Questions & Answers Dr Karsten Wildberger Florian Wieser
Slide 28: Financial calendar
Results Presentation Q4/FY 2021/22 on 15 December 2022 28 Financial calendar 22nd German Corporate Q1 2022/23 Annual Q2/H1 2022/23 Conference (Frankfurt) results General Meeting results 18 January 2023 14 February 2023 22 February 2023 15 May 2023 Q3/9M 2022/23 Q4/12M 2022/23 Q4/12M 2022/23 results
Slide 29: Contact
Results Presentation Q4/FY 2021/22 on 15 December 2022 29 Contact CECONOMY AG Investor Relations Kaistr. 3 40221 Düsseldorf Germany Phone +49 (211) 5408-7222 Email IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/
Slide 30: Appendix
Appendix
Slide 31: Shareholder structure and number of shares
Results Presentation Q4/FY 2021/22 on 15 December 2022 31 Shareholder structure and number of shares after conversion of preference shares and Convergenta transaction 6.7% 11.1% 4.8% Beisheim Original # of ordinary shares: 356,743,118 4.2% Exor Shareholder 36.5% structure1 # of converted preference
Slide 32: Segments FY 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 32 Sales growth driven by Eastern and Western/Southern Europe, DACH segment suffered from sector-related headwinds in FY 2021/22 Segments FY 2021/22 DACH / Sales on PY level, continuous growth in Western/ Hungary Eastern €m DACH Southern Others3
Slide 33: Reported EBIT Q4 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 33 Reported EBIT Q4 2021/22 Q4 2021/22 Adj. EBIT1 to reported 95 EBIT (€m) -43 -7 45 Mainly reflecting • New Operating Model Earnings effects from • COVID related store companies accounted for closures using the equity method Adj. EBIT1 Non-recu
Slide 34: Reported EBIT FY 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 34 Reported EBIT FY 2021/22 FY 2021/22 Adj. EBIT1 to reported 197 EBIT (€m) -62 Mainly reflecting -30 105 • New Operating Model • COVID related store closures Fnac Darty impairment partially • Retail tax Hungary compensated by Fnac Darty profit
Slide 35: Gross margin development FY 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 35 Gross margin development FY 2021/22 FY 2021/22 / Recovery of stationary business benefitted Gross development of channel shift & logistics cost margin1 ↗ +0.6%p. (as % of 17.7% / Higher cost of goods sold, competitive environment sales) 17.1%
Slide 36: OPEX development FY 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 36 OPEX development FY 2021/22 FY 2021/22 / OPEX and OPEX ratio at PY level, when adjusted for OPEX1 ↘ -0.1%p. adj. for COVID subsidies COVID-19 subsidies in PY (c. €170 m) and CY (c. €7 m) (absolute, €m) / Operational cost savings (e.g. rent op
Slide 37: Net Working Capital
Results Presentation Q4/FY 2021/22 on 15 December 2022 37 Net Working Capital FY 2021/22 €m 30/09/2020 30/09/2021 Change 30/09/2021 30/09/2022 Change Inventories 2,949 3,111 162 3,111 3,176 65 Trade receivables and similar claims 488 361 -127 361 440 78 Receivables due from suppliers 1,302 1,142 -16
Slide 38: Product category breakdown FY 2021/22
Results Presentation Q4/FY 2021/22 on 15 December 2022 38 Product category breakdown FY 2021/22 FY 2021/22 / White goods and Telecom recorded growth mainly Product Others2 driven by high demand for GSM and small domestic category 3% Brown goods appliances breakdown 19% / New Media category performed
Slide 39: Sales and store network
Results Presentation Q4/FY 2021/22 on 15 December 2022 39 Sales and store network Sales (€m) Stores (#) FY 2020/21 FY 2021/22 30/09/2021 Openings Closures 30/09/2022 Germany 9,735 9,798 405 1 –7 399 Austria 1,279 1,217 52 0 0 52 Switzerland 591 591 25 0 0 25 Hungary 398 440 32 4 0 36 DACH 12,003 12,
Slide 40: CECONOMY
O CECONOMY