Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (November 2023)
31 slides from Fnac Darty Sa's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
INVESTOR PRESENTATION NOVEMBER 2023
Slide 2: A European omnichannel leader with an efficient centralised operations platform
A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM €7.9bn Group revenue in 2022 – 25,000 employees 2022 revenue breakdown by category Consumer electronics 48% Top European omnichannel retailer Editorial products – 22% of total sales in 2022 are online sales 17% – c. 50%
Slide 3: Our strategic plan Everyday
OUR STRATEGIC PLAN EVERYDAY HOW DO WE COMMIT TO AN EDUCATED CHOICE AND A SUSTAINABLE CONSUMPTION, EVERYDAY? Build a digitized omnichannel retail Scale the next in-home Lead durable subscription-based behaviors assistance service 3
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: Q3 2023 Revenue
Q3 2023 REVENUE
Slide 10: Strategic highlights
STRATEGIC HIGHLIGHTS c. €130m €140m of positive cash impact revenue in 2022 COMET Court of Appeal in MEDIAMARKT Closing of the London rules in favor of Fnac Darty acquisition in Portugal 1M c. €200m Subscribers reached revenue by 2028 DARTY MAX well on track to WEAVENN Creation of a joint reach its
Slide 11: 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 12: Revenue resilience despite a challenging environment
REVENUE RESILIENCE DESPITE A CHALLENGING ENVIRONMENT YTD 2023 vs. YTD 2022 LFL1 Q3 2023 vs. Q3 2022 LFL1 +1,4% Flattish Q3 revenue €1,840 million down by -0.5% on +0,4% a reported basis and -0.1% on a LFL basis1 vs Q3 2022 mainly due to challenging market environment -0,1% – Strong momentum in Edito
Slide 13: Still outperforming the market
STILL OUTPERFORMING THE MARKET France & Switzerland (LFL)1 Market evolution (retail trade)2 Q3 2023 VS. Q3 2022 +0.4% -2.6% -1.5% -3.6% 9m 2023 VS. 9m 2022 1 Like-for-like: excluding the effect of changes in foreign exchange rates and scope of consolidation, openings and closures of integrated store
Slide 14: Outlook
OUTLOOK For FY 2023: – Cautiousness about the rebound in consumer consumption initially anticipated – Confidence about the ability to achieve a good level of activity in Q4 2023 driven by the year-end major sales events (Black Friday and Christmas) – H2 2023 Current operating income expected to be i
Slide 15: Appendices
APPENDICES
Slide 16: Definitions (1/2)
DEFINITIONS (1/2) Definition of like-for-like 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 income
Slide 17: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 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 EBITDA including rental expenses withi
Slide 18: Q1/Q2/H1 Revenue
Q1/Q2/H1 REVENUE Change vs. Q1 2022 Change vs. Q2 2022 Change vs. H1 2022 At constant FX At constant FX At constant FX and and and (€m) Q1 2023 Reported comparable Like-for-like Q2 2023 Reported comparable Like-for-like H1 2023 Reported comparable Like-for-like scope of scope of scope of consolidati
Slide 19: H1 2023 Revenue and Gross Margin
H1 2023 REVENUE AND GROSS MARGIN % LFL €m H1 2022 H1 2023 Slightly lower revenue €3,344 million in H1 2023 change1 – Down by -2.5% on a reported basis and -2.3% on a LFL basis1 Revenue 3,428 3,344 (2.3)% compared to H1 2022 mainly due to lower sales volumes – Strong momentum in Editorial products no
Slide 20: H1 2023 Group Financial Results
H1 2023 GROUP FINANCIAL RESULTS €m H1 2022 H1 2023 change Current Operating Income down €54m: lower Current operating income 19 (35) (54) sales, OPEX increase (energy cost and inflation Non-current operating income and not fully compensated by performance plans) (14) (100) expenses Operating income
Slide 21: H1 2023 Free Cash-Flow from Operations
H1 2023 FREE CASH-FLOW FROM OPERATIONS €m H1 2022 H1 2023 EBITDA 192 143 Free Cash Flow from operations reached -€660m IFRS 16 impact (126) (128) in H1, following the traditional negative Non-current cash items and 2 (12) seasonality of the business EBITDA non-cash items Clear improvement vs. H1 202
Slide 22: Cash-Flow Statement
CASH-FLOW STATEMENT €m H1 2022 H1 2023 Net Cash as of 1 January excl. IFRS 16 247 (5) Operating free cash-flow (excl. IFRS 16) (764) (660) Dividends paid (55) 0 Interest paid net of interest and dividends received (11) (13) Acquisition/disposal of other financial assets (net) 2 10 Increase/decrease
Slide 23: Financial Structure
FINANCIAL STRUCTURE €m 31/12/2022 30/06/2023 Shareholders’ equity 1,523 1,355 Net debt1 5 674 Strong equity position Gross financial debt 937 1,102 Cash and cash equivalents 932 427 Controlled leverage: covenants met at 30 June Leasing debt IFRS 16 1,141 1,065 – 1.96x EBITDA (excl. Comet) Dividend p
Slide 24: Debt Maturity
DEBT MATURITY Long-term financial debt by repayment maturity Securing the refinancing of the next major bond debt maturity of 2024 – Additional bank credit line (in the form of a delayed drawn term loan - DDTL) of €300 million, which is as yet undrawn RCF: €500m DDTL: €300m – Drawn down only once by
Slide 25: Simplified P&L
SIMPLIFIED P&L €m H1 2022 H1 2023 Revenue 3,428 3,344 Current operating income 19 (35) Non-current operating income and expenses (14) (100) Operating income 5 (136) Financial expense (18) (44) Tax (3) 19 Consolidated net income from continuing operations, Group share (17) (163) Net income from disco
Slide 26: Balance Sheet
BALANCE SHEET Assets in €m 31 Dec. 2022 30 June 2023 Equity and Liabilities in €m 31 Dec. 2022 30 June 2023 Goodwill 1,654 1,654 Share capital 27 27 Reserves related to equity 971 971 Intangible assets 562 575 Conversion reserves (4) (5) Tangible assets 570 543 Other reserves 518 349 Rights of use r
Slide 27: Store Network
STORE NETWORK 31 December 2022 30 September 2023 Owned Franchised Total Owned Franchised Total France and Switzerland1 412 414 826 407 427 834 Iberian Peninsula 69 6 75 72 6 78 Belgium and Luxembourg 86 0 86 86 0 86 Group 567 420 987 565 433 998 1 * Including 14 foreign Fnac stores: 1 in Saudi Arabi
Slide 28: Promoting Sustainable Consumption
PROMOTING SUSTAINABLE CONSUMPTION Durability 2nd life score 1.5 M Second Life products sold in 2022 in 2022 in 2025 500 K donated products Darty Max Recycle Launch of free collection of large household appliances, in 2022 with no purchase necessary Repaired products in 2025 in 2022 in 2025 28
Slide 29: A responsible retailer valued by ESG rating agencies
A RESPONSIBLE RETAILER VALUED BY ESG RATING AGENCIES A1+ AA in 2022 for the A- rating Low ESG Risk (Advanced) 71/100 in 2022 fourth consecutive vs. sector at C 12.1 vs. 66/100 in 2021 based on an overall time score of 61/100 (+ 7bps yoy) 29
Slide 30: 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 31: Fnac Darty
FNAC DARTY