Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Fnac Darty Sa Ord — H1 2023 Earnings Presentation
30 slides from Fnac Darty Sa's earnings presentation, Jul 27, 2023
Slide 1: Half Year 2023 Results
HALF YEAR 2023 RESULTS 27 July 2023
Slide 2: Agenda
AGENDA 6:00 pm INTRODUCTION Enrique Martinez, Chief Executive Officer 6:15 pm H1 FINANCIAL RESULTS Jean-Brieuc Le Tinier, Chief Financial Officer 6:30 pm CONCLUSION AND Q&A SESSION 2
Slide 3: Opening Remarks
OPENING REMARKS Enrique Martinez, Chief Executive Officer
Slide 4: H1 2023 Key Highlights
H1 2023 KEY HIGHLIGHTS Good resistance in a declining Quality of operational market execution Strong cost control and energy Winning commercial strategy efficiency coupled with our services focus Portugal acquisition to increase Resizing MANOR partnership European footprint in Suisse Romande Everyda
Slide 5: Fnac Darty's Solid Performance in H1 2023 Despite a Challenging Q2
FNAC DARTY’S SOLID PERFORMANCE IN H1 2023 DESPITE A CHALLENGING Q2 2023 France & Switzerland (LFL) Market evolution (retail trade)1 Q2 2023 VS. Q2 2022 -4.9% -6.0% -2.5% -3.9% H1 2023 VS. H1 2022 1 Banque de France – Monthly statistics – June 2023 – Internal estimate based on Fnac Darty 5 portfolio
Slide 6: H1 2023 Gross Margin Increasing Despite Lower Revenue
H1 2023 GROSS MARGIN INCREASING DESPITE LOWER REVENUE €3,344m Sales down 2.3% LFL1 vs H1 2022 due to sluggish consumption and negative calendar effects (~-1.5% H1 2023 Revenue impact in Q2) 31.1% Gross margin up +35 bps vs H1 2022 (excluding dilutive impact from franchises), despite inflationary env
Slide 7: Thanks to Our Unique Positioning
THANKS TO OUR UNIQUE POSITIONNING A winning complementarity of its stores and web platforms 79% 21% of which 49% of H1 revenue in-stores of H1 revenue online using Click&Collect A wide range of products and services Domestic appliances Technical products Editorial products Services 21% 46% 18% 15% *
Slide 8: Update on Our Energy Efficiency Plan
UPDATE ON OUR ENERGY EFFICIENCY PLAN Solar farm operational since April 2023 Relamping programme 31% of stores already LED-lighted1 ~€8m CAPEX invested in H1 2023 out of the €20m total investment expected -15% reduction in the Group's electricity consumption in France by the end of 2024 1 Owned stor
Slide 9: A Retail Media Leader
A RETAIL MEDIA LEADER Design innovative, differentiating, tailor-made omnichannel media expériences for brands Build awareness and recognition by creating emotion Shopper planning approach >1.500 Campaigns since 2021 Fast-growing communities to attract Large scale impact with innovative features x3
Slide 10: H1 Financial Results
H1 FINANCIAL RESULTS Jean-Brieuc Le Tinier, Chief Financial Officer
Slide 11: Revenue and Gross Margin
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 not compen
Slide 12: Gross Margin Improved by +35 bps
GROSS MARGIN IMPROVED BY +35 BPS +35 pdb +25 pdb +10 pdb -15 pdb 31.1% 30.9% 12
Slide 13: Cost Inflation Mostly Offset by Our Efficiency Program
COST INFLATION MOSTLY OFFSET BY OUR EFFICIENCY PROGRAM 1,075 1,039 13
Slide 14: H1 Group Financial Results
H1 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 5 (13
Slide 15: Free Cash-Flow from Operations
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 2022 thanks
Slide 16: 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 17: 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 – Drawn down only once by the Group a
Slide 18: Conclusion
CONCLUSION Enrique Martinez, Chief Executive Officer
Slide 19: Closing Remarks
CLOSING REMARKS Satisfying achievements in H1 in a difficult consumption environment: – Solid performance despite an inflationary context during H1 weighing on consumers’ spending – Gross margin increase by 35 bps excluding dilutive impact from franchise – Solid cost control through efficient perfor
Slide 20: Short and Medium-Term Objectives Confirmed
SHORT AND MEDIUM-TERM OBJECTIVES CONFIRMED Current operating income (COI) expected to be around €200 million in 2023 Closing of MediaMarkt Portugal expected end-September 2023 – keeping a close eye on potential growth opportunities Objective of ≈ €500 million in cumulative free cash-flow from operat
Slide 21: Q&A
Q&A
Slide 22: Appendices
APPENDICES
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: Store Network
STORE NETWORK 31 December 2022 30 June 2023 Owned Franchised Total Owned Franchised Total France and Switzerland1 412 414 826 408 420 828 Iberian Peninsula 69 6 75 68 6 74 Belgium and Luxembourg 86 0 86 86 0 86 Group 567 420 987 562 426 988 1 Including 13 stores abroad: 3 in Qatar, 4 in Tunisia, 2 i
Slide 29: 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 30: Fnac Darty
FNAC DARTY