Slide 1: Results Presentation Q1 2023/24
Results Presentation Q1 2023/24 9 February 2024
Slide 2: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 3: Momentum builds, strong start to the 2023/24 FY
Results Presentation Q1 2023/24 on 9 February 2024 3 Momentum builds, strong start to the 2023/24 FY +3.7% +7.8% +3 points Q1 sales growth1 vs. Q1 adjusted EBIT1 NPS increase vs. PY PY growth vs. PY € 7.0bn € 248m 56 Outlook 2023/24 confirmed 1Sales adjusted for fx- and portfolio effects, pre-IAS 29
Slide 4: Q1 operating highlights
Results Presentation Q1 2023/24 on 9 February 2024 4 Q1 operating highlights Stores Growth business Countries B&M sales up +3.7%1 YoY Marketplace: +125% GMV Strong performance in the Benelux, ES, TR Online Retail media: Sales up +3.9%1 YoY >90% income growth Improving profitability Online share 26.4
Slide 5: Successful peak season, continuing strong demand for premium and energy-efficient products
Results Presentation Q1 2023/24 on 9 February 2024 5 Successful peak season, continuing strong demand for premium and energy-efficient products / Gaming / Mobiles / Floorcare / White goods +56% sales +13% sales +22% sales +7% sales growth YoY growth YoY growth YoY growth YoY
Slide 6: Growing demand and opportunities for eco friendly products and solutions
Results Presentation Q1 2023/24 on 9 February 2024 6 Growing demand and opportunities for eco friendly products and solutions Growth in “A”-rated appliances Trade-in products (in thousands) Refurbished products (in thousands) ↗ +300% ↗ +200% ↗ +200% 96 ↗ +50% 13 Washing Machines Dishwashers Q1 2022/
Slide 7: Key pledges: good progress across the board
Results Presentation Q1 2023/24 on 9 February 2024 7 Key pledges: good progress across the board Target Current Trend Business fields KPI FY 2021/22 FY 2022/23 FY 2025/26 Q1 23/24 Retail Core Loyalty members1 34 m 39 m 50 m Retail Core Online share 25% 23% c. 30% Retail Core Modernization rate1 30%
Slide 8: Great strides in the integration of generative AI solutions
Results Presentation Q1 2023/24 on 9 February 2024 8 We have made great strides in the integration of generative AI solutions into our business Overview genAI Framework AI Sandbox for our employees Customer experience AI / Lean generative AI structure / AI trial and experience in a safe / Care chat
Slide 9: Development of our brand to become the Experience champion
Results Presentation Q1 2023/24 on 9 February 2024 9 Development of our brand to become the Experience champion Bringing it meaningful to life Bold, dynamic Brand Design Strong Experience Proof Points 1 2 Employee Usage Experience Experience 3 4 Shopping Impact Experience Experience
Slide 10: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 11: Robust sales and EBIT performance in Q1 underpins continued positive transformation trend
Results Presentation Q1 2023/24 on 9 February 2024 11 Robust sales and EBIT performance in Q1 underpins continued positive transformation trend Q1 development / Good sales performance supported by strong LFL of +3.7%1 3.2% ↗ (-1.2%) Reported 7,066 6,984 / Sales increase driven by both B&M and online
Slide 12: Positive development in Western & Southern and Eastern Europe offsets softer DACH
Results Presentation Q1 2023/24 on 9 February 2024 12 Positive development in Western & Southern and Eastern Europe offsets softer DACH Segments Q1 2023/24 Western/ Eastern DACH DACH Southern Others CECONOMY / Sales stabilisation in Austria, decline in the €m Europe Europe remaining countries due to
Slide 13: Good growth in Services & Solutions and 1P online sales, strong growth in Marketplace
Results Presentation Q1 2023/24 on 9 February 2024 13 Good growth in Services & Solutions and 1P online sales, strong growth in Marketplace Q1 development / Good performance of S&S sales ↗ +3.0% / Strong performance from warranties and Retail Media Services & 381 392 / Decline in Powerservices (inst
Slide 14: Strong gross margin and rigorous cost control drive adj. EBIT improvement
Results Presentation Q1 2023/24 on 9 February 2024 14 Strong gross margin and rigorous cost control drive adj. EBIT improvement Q1 development / Strong improvement in gross margin driven by a better product ↗ +50bp mix in favor of white goods Gross 17.6% / Product margin improved in all regions 17.1
Slide 15: Our efficiency programmes provide strong support
Results Presentation Q1 2023/24 on 9 February 2024 15 Our efficiency programmes provide strong support Run rate savings (€m) vs. 2021/22 Costs (€m) 130 -100 Q1 Q2 Q3 Q4 Q1 Run rate Q1 Q2 Q3 Q4 Q1 Cum from the 2022/23 2023/24 end of 2022/23 2023/24 2023/24 / Incremental savings in Q1 2023/24 mainly f
Slide 16: Net profit lifted by continued use of deferred tax asset
Results Presentation Q1 2023/24 on 9 February 2024 16 Net profit lifted by continued use of deferred tax asset Adjusted EBIT to EPS Q1 €m 2022/23 2023/24 Change €m Adjusted EBIT / Improvement driven by increase in gross Adjusted EBIT 230 248 +18 margin and cost control Non-recurring items -8 -29 -21
Slide 17: Strong FCF generation in Q1, liquidity position above € 2bn
Results Presentation Q1 2023/24 on 9 February 2024 17 Strong FCF generation in Q1, liquidity position above € 2bn Free cash flow (FCF) in Q1 2023/24 (YoY change, €m) Strong liquidity position / € 2.4bn at the end of the quarter -20 20 -65 1,593 NWC -120 1,473 / Stable absolute level as at 31.12 YoY
Slide 18: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 19: Post Q1 we confirm our outlook for 2023/24
Results Presentation Q1 2023/24 on 9 February 2024 19 Post Q1 we confirm our outlook for 2023/24 // Slight increase in currency- and portfolio-adjusted total sales // Clear improvement in adjusted EBIT // All segments are expected to contribute to the sales growth // Improvement in adjusted EBIT dri
Slide 20: Q1 results in summary
Results Presentation Q1 2023/24 on 9 February 2024 20 Q1 results in summary 01 02 Strong start to the financial Despite a challenging CE year market, we improved profitability and kept our market share 03 04 Our transformation We prioritise the customer programme is gaining experience and are buildi
Slide 21: Disclaimer and Notes
Results Presentation Q1 2023/24 on 9 February 2024 21 Disclaimer and Notes This disclaimer shall apply in all respects to the entire presentation This presentation is intended for information only, does not constitute a The market research institutes which data CECONOMY used as basis for this (inclu
Slide 22: Questions & Answers
Results Presentation Q1 2023/24 on 9 February 2024 22 Questions & Answers Dr. Karsten Wildberger Dr. Kai-Ulrich Deissner
Slide 23: Financial calendar
Results Presentation Q1 2023/24 on 9 February 2024 23 Financial calendar Shareholders Q2/H1 Q3/9M FY 2023/24 meeting results results trading statement 14 February 2024 15 May 2024 14 August 2024 29 October 2024
Slide 24: Contact
Results Presentation Q1 2023/24 on 9 February 2024 24 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/ Fabienne Caron Dr. Kerstin Achterfeldt VP, Head of Investor Relations Senior I
Slide 25: Appendix
Appendix
Slide 26: Increase in gross margin thanks to better product mix
Results Presentation Q1 2023/24 on 9 February 2024 26 Increase in gross margin thanks to better product mix Q1 Gross / Gross margin strongly improved in Q1 margin1 (as % of / Product margin driven by better product sales) mix 17.6% 17.1% 2022/23 Online share & Product Services&Solutions 2023/24 logi
Slide 27: Reported EBIT bridge & portfolio effects
Results Presentation Q1 2023/24 on 9 February 2024 27 Reported EBIT bridge & portfolio effects Q1 2023/24 / “Others” includes mainly IAS 29 effect of Adjusted EBIT1 248 -25 m€ 2 (€m) 27 218 1 Adjusted Efficiency Others At equity Reported EBIT measures investment EBIT and portfolio impacts 1Adjusted
Slide 28: NWC optimisation in focus
Results Presentation Q1 2023/24 on 9 February 2024 28 NWC optimisation in focus Inventories (€m) Stock turnover (weeks) / NWC on high PY level / Continued focus on stock management +196 +0.4 / Improvement in product availability for 3,549 7.1 3,354 6.7 the peak season / Stock turnover slightly incre
Slide 29: Net working capital
Results Presentation Q1 2023/24 on 9 February 2024 29 Net working capital Q1 2023/24 €m 30.09.2022 31.12.2022 Change 30.09.2023 31.12.2023 Change Inventories 3,176 3,354 177 2,918 3,549 631 Trade receivables and similar claims 440 475 35 490 557 67 Receivables due from suppliers 1,296 1,527 230 1,20
Slide 30: Q1 hyperinflation accounting
Results Presentation Q1 2023/24 on 9 February 2024 30 Q1 hyperinflation accounting Impact of IAS 29, fx- and Portfolio effects on Q1 sales growth / Impact of accounting for hyperinflation in Sales 3.7 Türkiye (IAS 29) this quarter on same level (% growth) than PY / -0.1% negative accounting impact o
Slide 31: Application of IAS 29, hyperinflation accounting
Results Presentation Q1 2023/24 on 9 February 2024 31 Application of IAS 29, hyperinflation accounting Reported sales Reported sales €m IAS 29 effect Sales pre-IAS 29 IAS 29 effect Sales pre-IAS 29 2022/23 2023/24 Q1 7,066 -15 7,080 6,984 -19 7,003 Fx-and Sales Portfolio Growth in € IAS 29 Reported
Slide 32: New segment reporting from 2023/24
Results Presentation Q1 2023/24 on 9 February 2024 32 New segment reporting from 2023/24 €m Q1 2022/23 Q2 2022/23 Q3 2022/23 Q4 2022/23 FY 2022/23 Total Sales 7,066 5,302 4,527 5,347 22,242 DACH 3,935 2,885 2,538 2,681 12,040 West/South 2,235 1,630 1,497 1,675 7,037 East 742 678 395 951 2,766 Others
Slide 33: CECONOMY
O CECONOMY