Slide 1: Results Presentation Q1 2017/18
Results Presentation Q1 2017/18 Dusseldorf, 9 February 2018
Slide 2: Disclaimer and Notes
DISCLAIMER the actions of public authorities and other third parties, many of which are beyond our control, that could cause actual results, performance or financial position to differ materially from any future results, performance or financial position expressed or implied in this Such financial i
Slide 3: Overview
Overview 01 02 03 Highlights Performance Outlook Results Presentation Q1 2017/18 Public Date: 9 Feb 2018 // 3
Slide 4: Highlights
01 Highlights Pieter Haas, CEO Date: 9 Feb 2018 // 4
Slide 5: Key aspects that impacted our Q1 performance
Key aspects that impacted our Q1 performance EBIT* (in €m) -49 1 308 Negative technical effects in Italy 258 To reverse over the course of the current year 2 Costs for the build-up of the CECONOMY holding Large part of expected HQ cost increase for the full year occurred in Q1 Q1 16/17 Q1 17/18
Slide 6: Recap of Black Friday in Germany
Recap of Black Friday in Germany Record Black Friday… …with potential to improve // All-time record day on Black Friday in almost all countries // Sales shifted into competitive period around Black Friday (Black Friday group sales c. €250m) and particularly in Germany // Due to campaign-driven weake
Slide 7: Lessons learnt from Spain
Lessons learnt from Spain Record Black Friday… …well managed in Spain // Similar to Germany, Spain saw strong sales growth around // Close monitoring and steering by Spanish country Black Friday with weaker sales in December organisation helped prevent strong margin deterioration // Bundling and bet
Slide 8: Sales up, but EBITDA/EBIT and change in NWC below prior year
Sales up, but EBITDA/EBIT and change in NWC below prior year (€m) (€m) (€m) +0.6% -51 -49 -401 +1.3% 6,935 366 308 1,631 fx-adjusted 6,893 315 258 1,230 Q1 16/17 Q1 17/18 Q1 16/17 Q1 17/18 Q1 16/17 Q1 17/18 Q1 16/17 Q1 17/18 Sales EBITDA* EBIT* Change in Net Working Capital (NWC) // Total sales incr
Slide 9: Performance
02 Performance Mark Frese, CFO Date: 9 Feb 2018 // 9
Slide 10: Strong sales around Black Friday, but weaker Christmas trading
Strong sales around Black Friday, but weaker Christmas trading Total and LfL Sales (fx-adjusted, yoy change) Total LfL Highlights 1.3% 0.5% // Sales in Germany slightly increased, but declined in Switzerland 0.3% // Spain & Turkey led sales growth on an fx-adjusted 0.0% basis Q1 16/17 Q1 17/18 Q1 16
Slide 11: Online was once again the key sales driver
Online was once again the key sales driver Online Sales (in €m) Highlights +12% +18% 814 2,494 727 2,106 // Online generated sales of MediaMarkt and Saturn increased by +22% yoy or 12% including pure player (e.g. redcoon), respectively // Online now accounts for 11.7% of total sales vs. 10.5% Q1 16/
Slide 12: Solid growth of Services & Solutions sales
Solid growth of Services & Solutions sales Services & Solutions Sales (in €m) Highlights +6% +4% 385 407 1,352 1,400 // Services & Solutions sales up +6% yoy, largely driven by repair services as well as insurances, financing and extended warranties // Services & Solutions now account for 5.9% of to
Slide 13: Our customer programmes continued to grow strongly
Our customer programmes continued to grow strongly Members in Customer Programmes MM Club Saturn Card* Highlights in Germany (in k) +845 +777 +662 4,650 +553 3,805 // German MediaMarkt Club continues strong growth in 3,028 number of members, counting 3.7m in December 2,366 3,696 1,813 3,196 2017 vs.
Slide 14: Opening of Shop-in-Shops and further rightsizings led to continued reduction in average store size
Opening of Shop-in-Shops and further rightsizings led to continued reduction in average store size Number of stores Incl. 97 Shop- in-Shops Highlights 1,149 1,053 97 -1 // Selective store expansion continued with 13 openings Incl. 84 Shop- (excl. Shop-in-Shops) and 1 closure in Russia in-Shops // Ou
Slide 15: Profitability below prior-year period
Profitability below prior-year period EBITDA & EBIT (in €m) EBITDA EBIT Highlights -51 -49 366 308 315 258 // Gross margin declined by -0.8%p. from 19.8% to 19.1% // Price reductions around Black Friday, in particular in Germany, to support leading market position; resulted in shift of December sale
Slide 16: EPS mainly impacted by decline in EBIT
EPS mainly impacted by decline in EBIT €m Q1 16/17 Q1 17/18 Change Highlights EBITDA 366 315 -51 margin (%) 5.3% 4.5% -0.8%p. Net financial result virtually unchanged due to low EBIT 308 258 -49 interest rate on new debt (“Schuldschein” and CPs) margin (%) 4.5% 3.7% -0.7%p. Net financial result 1 2
Slide 17: Negative NWC development weighed on Free Cash Flow
Negative NWC development weighed on Free Cash Flow Q1 2017/18: Free Cash Flow (in €m) Highlights 1,230 1,468 1,395 -32 -45 // NWC decline driven by rise in inventories due to -73 weaker-than-anticipated December sales, lower payables driven by changes in the product mix and 315 increased receivables
Slide 18: Outlook
03 Outlook Mark Frese, CFO Date: 9 Feb 2018 // 18
Slide 19: Outlook
Outlook The outlook is adjusted for currency effects and portfolio changes. FY 2016/171 FY 2017/18 Confirmed €m Total 1 Salessales €22,155 Slight increase 2 ✓ EBITDA (excl. Fnac Darty) 704 At least mid single-digit % growth ✓ EBIT (excl. Fnac Darty) 471 At least mid single-digit % growth ✓ Fnac Dart
Slide 20: Recap: Building blocks for FY 2016/17
Recap: Building blocks for FY 2016/17 EBIT before special items (in €m) + Gross margin + Online business + Tight cost control 471 466 +4 + Focused marketing spend + Germany, Spain, Turkey Italy, Russia +37 ± Broadly in line with sales development -57 +23 + Gross margin + Germany (additional later
Slide 21: In a nutshell: Key sales and profit drivers in Italy
In a nutshell: Key sales and profit drivers in Italy Recap FY 16/17 Initiatives FY 17/18 // Leading player in Italy with a market share of 13% // New management in place // Intense competitive environment driven by pricing // Introduction of central category management approach pressure and heavy pr
Slide 22: Building blocks for Q2 to Q4 2017/18
Building blocks for Q2 to Q4 2017/18 Illustrative EBIT (excl. Fnac Darty) At least mid-single digit % growth + Phasing effect Italy + Improvements in + Fifa World Cup Italy + Improvements in + Restructuring Italy entities (RU, SE, Shift of December + No VAT campaign + Restructuring redcoon) sales
Slide 23: Q&A
Q&A Pieter Haas, CEO Mark Frese, CFO Results Presentation Q1 2017/18 Public Date: 9 Feb 2018 // 23
Slide 24: Contact
CECONOMY AG Investor Relations Benrather Strasse 18-20 CONTACT 40213 Dusseldorf Germany Tel.: +49 (211) 5408-7222 Email: IR@ceconomy.de https://www.ceconomy.de/en/investor-relations/ Date: 9 Feb 2018 // 24
Slide 25: Store network as per 31 December 2017
Store network as per 31 December 2017 Openings Closures 30/09/2017 Q1 2017/18 Q1 2017/18 31/12/2017 Austria 50 2 - 52 Belgium 28 1 - 29 Germany 429 2 - 431 Greece 12 - - 12 Hungary 24 - - 24 Italy 116 - - 116 Luxembourg 2 - - 2 Netherlands 49 - - 49 Poland 86 1 - 87 Portugal 10 - - 10 Russia 57 85 (
Slide 26: Balance sheet per 31 December 2017
Balance sheet per 31 December 2017 €m 31/12/2016* 30/09/2017 31/12/2017 Non-current assets 1,758 2,144 2,121 Intangible assets 597 631 634 Property, plant and equipment 866 858 850 Fnac Darty stake Investment accounted for using the equity method 0 458 457 Other financial and non-financial assets 29
Slide 27: Quarterly Sales Drivers FY 2016/17
Quarterly Sales Drivers FY 2016/17 Total & LfL Sales (yoy change) Total LfL 5.8% 4.6% 2.7% 1.9% 1.3% 1.1% 0.6% 0.3% 0.1% 0.1% 0.0% 0.0% FY 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 FY 16/17 + Online business + Online business + Easy comps + VAT campaign in Germany + Germany (white goods, + Services
Slide 28: Upcoming events
Upcoming events AGM 2018 Wednesday, 14 February 2018 Q2/H1 2017/18 results Thursday, 17 May 2018 Q3/9M 2017/18 results Tuesday, 14 August 2018 FY 2017/18 results Wednesday, 19 December 2018 Results Presentation Q1 2017/18 Public Date: 9 Feb 2018 // 28
Slide 29: Date: 31 Aug 2017
Date: 31 Aug 2017 // 29