Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Fnac Darty Sa Ord — FY2021 Earnings Presentation
38 slides from Fnac Darty Sa's earnings presentation, Feb 24, 2022
Slide 1: Full Year Results 2021
FULL YEAR RESULTS 2021 FEBRUARY 24, 2022
Slide 2: Agenda
AGENDA 2021 BUSINESS REVIEW AND STRATEGIC ACHIEVEMENTS 8.30 am Enrique Martinez, CEO 2021 ANNUAL RESULTS PRESENTATION 9.00 am Jean-Brieuc Le Tinier, CFO 9.15 am CONCLUSION AND Q&A SESSION 2
Slide 3: 2021 Business Review & Strategic Achievements
2021 BUSINESS REVIEW & STRATEGIC ACHIEVEMENTS Enrique Martinez, CEO 3
Slide 4: Challenges and successes through the 2-year crisis
THE GROUP SUCCEEDED IN THIS UNPRECEDENTED 2-YEAR CRISIS AND MET SIGNIFICANT CHALLENGES CHALLENGES Significant changes in Supply chain under Disrupted logistics Delivery capacity Disrupted social store operations pressure and digital capacity under pressure relationships FNAC DARTY’S SUCCESSES ▶ Succ
Slide 5: Exceptional performance in 2021
EXCEPTIONAL PERFORMANCE IN 2021 • Health crisis still impacting 2021, with several store closures during H1, but to a lesser extent than in 2020 • Exceptional revenue growth to €8,043m in 2021, up +7.4% compared to 2020 and up +8.2% compared to proforma 20191 • Current operating income at €271m, up
Slide 6: Market trends well oriented in our categories
MARKET TRENDS WELL ORIENTED IN OUR CATEGORIES CHANGE IN VALUE OF THE GROUP'S MAIN MARKETS SINCE 2018 (BASE 100) DOMESTIC APPLIANCES CONSUMER ELECTRONICS EDITORIAL PRODUCTS 2018 2019 2020 2021 • People are spending more time at home leading to higher-end demand – Strong demand for categories linked t
Slide 7: A group well positioned to meet customers' needs
A GROUP WELL POSITIONED TO MEET CUSTOMERS’ NEEDS • Tactical management of purchases • Continued diversification of our product – Very good availability of products despite some tension offering on the supply chain – Rollout of the Darty Cuisine offer to more than 185 – Exclusivity on innovative high
Slide 8: Accelerating the digital transformation
ACCELERATING THE DIGITAL TRANSFORMATION • Consolidating digital • Innovations for a reinvented • Game-changing partnership performance at a higher digital experience with Google in cloud to level than pre-Covid crisis – >150,000 interactions via video chat accelerate in digital – 5 million new web a
Slide 9: Exhaustive monitoring of the store network
EXHAUSTIVE MONITORING OF THE STORE NETWORK • Stores are a key asset for the success of the • Action plans to optimize our existing store omnichannel model network – Dense store network with 957 stores at the end of 20211 – Complete review of the existing store network with action plans clearly ident
Slide 10: Promoting sustainable consumption and informed choice
PROMOTING SUSTAINABLE CONSUMPTION AND INFORMED CHOICE • More information on product sustainability • Acceleration in product repairs – 4th Barometer on the “Sustainable Choice” and extension of – 2.1 million products repaired in 2021 vs. 1.8 million in 2020 the “sustainable choice” label to Fnac to
Slide 11: Reducing the impacts on the environment
REDUCING THE IMPACTS ON THE ENVIRONMENT • Climate issues integrated into all the Group's • Very good improvement in CSR recognitions businesses in 2021 – -14% decrease in the transport and energy-related CO2 – Sharp increase in non-financial ratings emissions compared to 2019 – Label "Supplier Relat
Slide 12: Scaling Darty Max, the reference in service
SCALING DARTY MAX, THE REFERENCE IN SERVICE Approx. 500,000 x1.5 purchase subscribers frequency vs. standard Darty vs approx. 200,000 a year ago customer >4 million +25% products already average basket covered1 vs. standard Darty customer Contribute actively High level of to product satisfaction dur
Slide 13: FY 2021 Results
FY 2021 RESULTS Jean-Brieuc Le Tinier, CFO 13
Slide 14: Group revenue & current operating income
GROUP REVENUE & CURRENT OPERATING INCOME • Sales growth of +7.0% on a like-for-like basis1 due to a solid momentum in store sales, driven mainly driven by a higher €m 2020 2021 % Change conversion rate and average basket • Gross margin rate reached 29.5%, up +30 bps thanks to: – Favorable product mi
Slide 15: Performance by geographic regions
PERFORMANCE BY GEOGRAPHIC REGIONS • France & Switzerland €m 2020 2021 Change – Strong momentum in in-store sales, which offset the normalization of online sales due to a very high comparison basis last year. France & Switzerland – Current operating income increased thanks to the revenue growth and a
Slide 16: Group reported financial results
GROUP REPORTED FINANCIAL RESULTS €m 2020 2021 • Financial charges of €42m in 2021 down vs. 2020 mainly due to the upward revaluation of the fair Current operating Income 215 271 value of the Group's shares in the Daphni Purple venture capital fund Non-current operating income -16 -10 • Tax charges u
Slide 17: Solid free cash-flow generation in 2021
SOLID FREE CASH-FLOW GENERATION IN 2021 €m 2020 2021 • EBITDA up +€54m in line with current operating income evolution EBITDA 567 621 • CAPEX2 of €117m include the investments IFRS 16 impact -245 -247 required to roll out the partnership with Manor in Switzerland and is in line with the normative No
Slide 18: Strong liquidity position reinforced in 2021
STRONG LIQUIDITY POSITION REINFORCED IN 2021 €m 2020 2021 • Strong liquidity position of €1.2bn, in addition to Shareholders’ equity 1,373 1,564 a €500m revolving credit facility (RCF), which has not yet been drawn down. Net cash1 114 247 Gross debt 1,455 934 • Solid net cash position1: €247m, up +€
Slide 19: Current Highlights & Outlook
CURRENT HIGHLIGHTS & OUTLOOK Enrique Martinez, CEO 19
Slide 20: Current highlights & outlook
CURRENT HIGHLIGHTS & OUTLOOK • 2022 has begun with the ongoing health crisis and the gradual rise in inflation. – Fnac Darty has decided to pay an exceptional purchasing power bonus to over 19,000 employees to support those who are most directly affected by current inflationary pressures • Given thi
Slide 21: Return to shareholders
RETURN TO SHAREHOLDERS • Dividend in line with the shareholder return policy of the Everyday plan • 2021 dividend of €2.0 per share1 Gross dividend per share 2,00 € 1,00 € – Payout ratio: 37%2 – Dividend yield: 3.5%3 2020 2021 1 Subject to the approval of the General Meeting on May 18, 2022 2 Based
Slide 22: Q&A
Q&A FNAC DARTY
Slide 23: Full Year Results 2021
FULL YEAR RESULTS 2021 FEBRUARY 24, 2022
Slide 24: Appendices
APPENDICES FNAC DARTY
Slide 25: 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 inc
Slide 26: Definitions (2/2)
DEFINITIONS (2/2) With application of IFRS 16 IFRS 16 Without application of IFRS 16 EBITDA EBITDA excluding IFRS 16 Rents within the scope Current operating income before depreciation, EBITDA including rental expenses within the scope of amortization and provisions on fixed operational assets of IF
Slide 27: Everyday main CSR KPIs
EVERYDAY MAIN CSR KPIS KPIs 2020 2021 2025 objectives Durability score1 105 111 135 Number of products repaired 1.8 million 2.1 million 2.5 million Proportion of women in the Leadership Group2 24% 27% 35% Share of underrepresented gender in the 33% 38% >40% Executive Committee 1 Average of a reliabi
Slide 28: Fnac Darty, a responsible company
FNAC DARTY, A RESPONSIBLE COMPANY FOCUS ON A STRONG COMMITMENT TOWARD A MORE CIRCULAR ECONOMY A strong commitment to the circular economy with a clear engagement in extending product durability through a unique service proposal 111 849 tests on 447 products A sustainability score of 111 in carried o
Slide 29: A responsible retailer recognized by external ESG organizations
A RESPONSIBLE RETAILER RECOGNIZED BY EXTERNAL ESG ORGANIZATIONS 2021 48 • Top 20% worldwide A- 100 (rank in Universe: 358/4,923) • Rank in Sector 8/74 (vs. 9/73 in 2020) Information rate of 91% • Information rate of 95% 2020 2021 Average performance of discretionary retail B- Low 7.8 11.4/ AA 12.2 2
Slide 30: Q4 and FY 2021 revenue vs. 2020
Q4 AND FY 2021 REVENUE VS. 2020 Change vs. Q4 2020 Change vs. 2020 At constant FX €m Q4 2021 At constant FX 2021 and and comparable Reported Like-for-like Reported comparable Like-for-like scope of scope of consolidation consolidation France and Switzerland 2,283 -2.8% -2.8% -3.3% 6,701 7.6% 7.6% 7.
Slide 31: Q1-Q2-Q3 2021 revenue vs. 2020
Q1-Q2-Q3 2021 REVENUE VS. 2020 Change vs. Q1 2020 Change vs. Q2 2020 Change vs. Q3 2020 At constant FX At constant Q3 At constant €m Q1 2021 and Q2 2021 FX and FX and 2021 Reported comparable Like-for-like Reported comparable Like-for-like Reported comparable Like-for-like scope of scope of scope of
Slide 32: Cash flow statement
CASH FLOW STATEMENT €m 2020 2021 Net Cash as of January 1 -18 114 Operating free cash-flow 192 170 Dividends paid 0 -27 Shareholders’ equity component – OCEANE bonds 0 21 Interest paid net of interest and dividends received -25 -27 Acquisition/disposal of subsidiaries net of cash transferred -9 -2 A
Slide 33: Net cash position
NET CASH POSITION In €m Operating free cash-flow1: €170m -34 -69 -117 389 -1 -27 -7 247 114 Net cash CF from Change in Corporate Operating Discontinued Net financial Others* Net cash position position as operation working capital income tax investments activities costs as December 31, December 31, b
Slide 34: Simplified P&L
SIMPLIFIED P&L Reported €m 2020 2021 Revenue 7,491 8,043 Current operating income 215 271 Non-current operating income and expenses -16 -10 Operating income 199 260 Financial expense -51 -42 Tax -60 -74 Consolidated net income from continuing operations, Group share 96 145 Net income from discontinu
Slide 35: Simplified H1 & H2 2021 P&L vs. 2020
SIMPLIFIED H1 & H2 2021 P&L VS. 2020 €m H1 2020 H2 2020 H1 2021 H2 2021 Revenue 2,849 4,642 3,465 4,578 Gross margin 844 1,342 1,029 1,345 % Revenue 29.6% 28.9% 29.7% 29.4% Total costs -902 -1,069 -995 -1,108 % Revenue 31.7% 23.0% 28.7% 24.2% Current operating income -58 273 34 237 Non-current opera
Slide 36: Balance sheet
BALANCE SHEET Assets in €m FY 2020 FY 2021 Equity and Liabilities in €m FY 2020 FY 2021 Goodwill 1,654 1,654 Share capital 27 27 Intangible assets 506 528 Reserves related to equity 971 971 Conversion reserves -5 -6 Tangible assets 594 575 Other reserves 375 563 Rights of use relating to lease agree
Slide 37: Store network
STORE NETWORK December 31, 2020 December 31, 2021 Owned Franchised Total Owned Franchised Total France and Switzerland(1) 412 339 751 413 385 798 Iberian Peninsula 67 5 72 69 5 74 Belgium and Luxembourg 85 0 85 85 0 85 Group 564 344 908 567 390 957 1 Including 14 stores outside France: 4 in Tunisia,
Slide 38: 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