Ceconomy Ag · XETR:CEC
Ceconomy — Berenberg-Goldman Sachs Corporate Conference 2024
46 slides from Ceconomy's conference presentation, Sep 24, 2024
Slide 1: Berenberg-Goldman Sachs Corporate Conference
Milan, Italy Berenberg-Goldman Sachs Corporate Conference 24 September 2024
Slide 2: 1. Company profile
Graz-Seiersberg, Austria 1. Company profile
Slide 3: Europe's leading consumer electronics retailer with good traction
September 2024 | Corporate Conference 3 Europe’s leading consumer electronics retailer with good traction / Europe’s largest consumer electronics retailer with leading positions in 9 of 11 markets / Strong diversification across business models, regions, and product categories / Reinvented long term
Slide 4: Market leader in European consumer electronics
September 2024 | Corporate Conference 4 Market leader in European consumer electronics All figures refer to FY 22/23 #1 / #2 market position in 9 of 11 ~2 bn ~38 m +53 markets1 Customer Loyalty Net Promotor contacts members Score Brand awareness >75%2 Strategic investment in FNAC ~€22 bn ~€5 bn ~€1
Slide 5: CECONOMY's transformation from a decentralised retailer to a customer-centric service platform
September 2024 | Corporate Conference 5 CECONOMY’s transformation from a decentralised retailer to a customer-centric service platform / METRO GROUP demerger – CECONOMY officially an independent company Since 2017, CECONOMY has… 2017 / CECONOMY acquires 24.3% of Fnac Darty S.A. as strategic investme
Slide 6: We operate in a constantly growing industry
September 2024 | Corporate Conference 6 We operate in a constantly growing industry Growth opportunities Sustainability Sustainable and energy-efficient products +50% CAGR in energy-efficient category segments 1 AI-powered consumer electronics Some of the most evident applications of AI AI enhancing
Slide 7: We are well positioned to gain further share as we are focusing on growth trends
September 2024 | Corporate Conference 7 We are well positioned to gain further share as we are focusing on growth trends Today: Approx. 80% of our product mix in growing categories3 Market size Bubble size: CECONOMYs inhouse share of respective department (Oct 23–March 24, €bn) 25 / We are focusing
Slide 8: We are well-diversified in terms of both regional and product sales
September 2024 | Corporate Conference 8 We are well-diversified in terms of both regional and product sales Sales share by region FY 22/23 Product sales per category FY 22/23 DACH IT, phones, White goods 54% wearables 45% 26% 32% West/South 2% Photo 2% 17% 12% 8% Others TV, HiFi East Software & game
Slide 9: We create Experience Electronics to enrich people's life
September 2024 | Corporate Conference 9 We create Experience Electronics to enrich people’s life – our omnichannel strategy shows visible progress FY 21/22 FY 22/23 Growth plan FY 25/26 Employee Shopping Net Slightly above experience experience sales €21.8 bn €22.2 bn market growth “Front-line first
Slide 10: We transform and enhance our business model to strengthen financial performance
September 2024 | Corporate Conference 10 We transform and enhance our business model to strengthen financial performance Ambition until FY 25/26 Retail Core: Moderate sales growth & c. 30% online share c. 5.5% €750 m c. 5% Up to20 c. €45 m Services & Marketplace Private Label Lighthouses Retail Medi
Slide 11: 2. Strategic update
Milan, Italy 2. Strategic update
Slide 12: We guide the customer through an increasingly complex world!
September 2024 | Corporate Conference 12 We guide the customer through an increasingly complex world! Convenient and Sustainable Strong and reliable Customer-centric Lifecycle seamless shopping products and partner to assortment services experience solutions the industry / Pick-up in 30 min / Core-p
Slide 13: We have established leadership positions in key European markets
3 III September 2024 | Corporate Conference 13 We have an established leadership positions in key European markets DE TR IT We hold the #1 #1 #1 #2 #2 #2 #1 or #2 position in 9 of 11 countries #3 #3 #3 Since the issuance of our outstanding ES NL BE senior notes in FY 2020/21: #1 #1 #1 / We increased
Slide 14: Moving from CE retail to a retail service platform with several business models
September 2024 | Corporate Conference 14 Moving from CE retail to a retail service platform with several business models >2.0 bn annual customer contacts > > ”The Next Stores Online App ”Omnichannel Touchpoints“ Direct Contact Social Big Thing“ … Center Media Retail Core Services & Space-as-a- Marke
Slide 15: Our Services & Solutions portfolio serves the most relevant customer needs
September 2024 | Corporate Conference 15 Our Services & Solutions portfolio consequently serves the most relevant customer needs and adapts accordingly c. 5.5% S&S income Reality of 70% 73% 71% 80% European Are uncomfortable about Wish their life was more Cannot financially cover an Feel that we are
Slide 16: Marketplace is the key driver to enrich our assortment
September 2024 | Corporate Conference 16 Marketplace is the key driver to enrich our assortment €7501 m Breadth of assortment Marketplace GMV Yesterday / Marketplace offers max. choice & availability, Online assortment Reduction of online/ offline assortment reduces our stock and generates commissio
Slide 17: Our margin accretive private labels are an important part of our assortment
September 2024 | Corporate Conference 17 Our margin accretive private labels are an important part of our assortment c. 5% Private Label Three key consumer demands… …addressed by our four very strong private labels share Consumer Consumer Accessories Price appliances electronics for devices Consumer
Slide 18: Snapshot Private Label: Significant positive progress in Q3
September 2024 | Corporate Conference 18 Snapshot Private Label: Significant positive progress in Q3 c. 5% Private Label Private Label share development share Q3 in-house share c. 3% Accelerated in-house share of Private Label sales / +22% Private Label sales growth in Q3 / Driven by volume growth P
Slide 19: We provide an attractive Retail Media platform for our partners
September 2024 | Corporate Conference 19 We provide an attractive Retail Media platform for our partners c. €45 m Retail Media With ~2 billion annual customer contacts, we have insights of great value… Income Sponsored Improve visibility of the Increase sales Product Ad product and market share Unlo
Slide 20: Deep dive Retail Media: first party data analytics a substantial growth driver
September 2024 | Corporate Conference 20 Deep dive Retail Media: our first party data analytics remained a substantial growth driver c. €45 m Retail Media Digital Out Of Home Income (DOOH) / Continuous strong growth Instore Ads momentum and income increase Reporting / Launching new products and (Omn
Slide 21: We are transforming our tech infrastructure and will operate fully cloud based in three years
September 2024 | Corporate Conference 21 We are transforming our tech infrastructure and will operate fully cloud based in three years Our tech stack transformation The move from single channel and multichannel to omnichannel… / We are replacing our legacy IT systems / New IT capabilities enable us
Slide 22: Next to our tech, we are also transforming our supply chain
September 2024 | Corporate Conference 22 Next to our tech, we are also transforming our supply chain From sales channel dependent fulfilment… …To omnichannel integrated fulfillment / All manufacturers supply all shops and our online warehouse / Manufacturer supplies the Omni Distribution Center and
Slide 23: Four store formats, all around experience zones, services, and the human touch
September 2024 | Corporate Conference 23 Four store formats, all around experience zones, services, and the human touch LIGHTHOUSE CORE Inspiration and Availability and Experience Advice >4,000sqm c. 1,200-3,500sqm XPRESS SMART Proximity and Omnichannel and Convenience City center location c. 400- c
Slide 24: We target the complete overhaul of core store portfolio by FY 25/26
September 2024 | Corporate Conference 24 We target the complete overhaul of core store portfolio by FY 25/26 Refreshing our store portfolio How we measure success Smart Store portfolio Xpress 9 Lighthouse stores with significantly increased frequency development Lighthouse & profitability – 20 store
Slide 25: Sustainability is part of our DNA
September 2024 | Corporate Conference 25 Sustainability is part of our DNA 1 2 3 "We offer a climate- "We offer the most "We take social neutral shopping sustainable range of responsibility for our experience" CE products and are employees, suppliers circular business and communities" pioneers in Eu
Slide 26: We have set ourselves ambitious sustainability targets
September 2024 | Corporate Conference 26 We have set ourselves ambitious sustainability targets Our growth levers Reducing carbon emission Scope 1&2 Scope 3 Approved “Science Based Targets” (SBTi) and participation Our operations Upstream and downstream in the EU Sustainable Consumption Pledge At le
Slide 27: We consider sustainability a growing business opportunity
September 2024 | Corporate Conference 27 We consider sustainability a growing business opportunity BetterWay1 sales share (in %) Trade-in products (in thousands) Refurbished products (in thousands) Sales share of products Used devices exchanged for Used devices repaired & marked as sustainable a gif
Slide 28: Our key pledges for FY25/26
September 2024 | Corporate Conference 28 Our key pledges for FY25/26 – regularly communicated to capital markets Our key pledges for FY 25/26… …and further KPI targets Retail core Retail Core # of customer contacts 2.2 bn # of sold refurbished products c. 220,000 Sales with loyalty members c. +60%1
Slide 29: Snapshot Q3/9M: Key pledges – further progress in all business fields
September 2024 | Corporate Conference 29 Snapshot Q3/9M: Key pledges – further progress in all business fields Target Progress Business fields KPI FY 2021/22 FY 2022/23 FY 2025/26 Q3 23/24 Retail Core Loyalty members 34 m 39 m 50 m Retail Core Online share 25% 23% c. 30% Retail Core Modernization ra
Slide 30: Ongoing strong sales momentum drove EBIT growth
September 2024 | Corporate Conference 30 Ongoing strong sales momentum drove EBIT growth Q3 9M Sales / Sales growth driven by both B&M and (€m) +6.6%1 +5.2%1 online sales (+8.6%) (+2.0%) / Strong like-for-like performance of 16,895 17,236 5.2% in Q3 (4.1% in 9M) 4,527 4,918 2022/23 2023/24 2022/23 2
Slide 31: Our further growth plan: >€500 m EBIT and c. €200 m FCF in FY 25/26
September 2024 | Corporate Conference 31 Our further growth plan: >€500 m EBIT and c. €200 m FCF in FY 25/26 Key financial figures FY 21/22 FY 22/23 Growth plan FY 25/26 Adjusted EBIT1 €208 m €243 m >€500 m Delta growth plan vs. FY 21/22: Gross margin1 17.6% 17.9% c. 20% EBIT increase of c. 150% Adj
Slide 32: Service businesses play biggest role in profitability increase
September 2024 | Corporate Conference 32 Service businesses play biggest role in profitability increase Simplified approximation Adj. EBIT margin c. 2.5% c. 0.2%p. c. 0.9%p. c. 0.2%p. c. 0.2%p. 1.0% c. 0.2%p. FY 21/221 Retail Core Private Label Marketplace Operational Retail Media FY 25/26 (incl. Sp
Slide 33: Maturity profile successfully extended by early refinancing of our corporate bond
September 2024 | Corporate Conference 33 Maturity profile successfully extended by early refinancing of our corporate bond New financing structure (in €m) / Proactive management of maturity profile by early refinancing our bond due 2026 / New sustainability-linked bond with 144 maturity in July 2029
Slide 34: 3. Q3 23/24 at a glance
Lucca, Italy 3. Q3 23/24 at a glance
Slide 35: Dynamic momentum sustained in Q3
September 2024 | Corporate Conference 35 Dynamic momentum sustained in Q3 / 6.6% sales growth, fueled by Stores strong 5.2% like-for-like +6.6% +€9 m +6 points / Substantial Market share gains adjusted EBIT1 sales NPS increase (Market slightly growing) growth vs. PY growth1 vs. PY vs. PY / Further u
Slide 36: Our operating highlights in Q3
September 2024 | Corporate Conference 36 Our operating highlights in Q3 Continuing momentum Growth businesses Countries / B&M sales up +5.8%1 YoY / Operational S&S income / Strong sales performance in share strongly increased Spain, the Netherlands, / Online sales up +9.7%1 YoY / Marketplace: GMV mo
Slide 37: Dynamic top line growth and profitability trend bolstered by both DACH and Western & Southern Europe
September 2024 | Corporate Conference 37 Dynamic top line growth and profitability trend bolstered by both DACH and Western & Southern Europe Segments Q3 2023/24 Western/ DACH Eastern DACH Southern Others2 CECONOMY / EBIT improvement throughout the region, €m Europe Europe notably Germany, driven by
Slide 38: Acceleration of Services & Solutions sales in Q3
September 2024 | Corporate Conference 38 Acceleration of Services & Solutions sales in Q3 Services & Solutions sales1,2 (€m) / Boost in S&S sales in Q3 with +18% +18.1% / Strong performance from operational Services & Solutions 348 through: – GSM contracts – Warranties 301 / Strong development of Re
Slide 39: Online sales soar again in Q3
September 2024 | Corporate Conference 39 Online sales soar again in Q3 1P Online sales1 (€m) / Continued strong 1P online sales growth driven by all regions +9.7% / Doubling of Marketplace GMV in Q3 1,034 / Marketplace currently live in five countries, with Italy opened in July 963 / Online share in
Slide 40: Adjusted EBIT expansion fueled by gross margin uplift and rigorous cost management
September 2024 | Corporate Conference 40 Adjusted EBIT expansion fueled by gross margin uplift and rigorous cost management Q3 9M Gross / Q3 gross margin down -20bp impacted margin1 (%) -20bp +30bp by Logistics Transformation Shift (LTS) / Shift of personnel expense into COGS for 18.2% 17.9% 80bp in
Slide 41: EPS up on improved EBIT performance
September 2024 | Corporate Conference 41 EPS up on improved EBIT performance Adjusted EBIT to EPS Q3 €m 2022/23 2023/24 Change Adjusted EBIT Adjusted EBIT -60 -51 +9 / Improvement driven by increase in sales and gross profit Non-recurring items -63 -29 +34 Non-recurring items EBIT reported -123 -79
Slide 42: Q3 free cash flow increased by €100 m YoY
September 2024 | Corporate Conference 42 Q3 free cash flow increased by €100 m YoY 9M FCF only €135 m behind last year after Free cash flow (FCF) in 9M 2023/24 (YoY change, €m) €235m in H1 683 NWC -155 / Further normalisation: better product -14 availability to support sales growth Tax -214 / Reduce
Slide 43: Post Q3 we updated our sales outlook for 2023/24
September 2024 | Corporate Conference 43 Post Q3 we updated our sales outlook for 2023/24 // Moderate increase in currency- and portfolio-adjusted total sales // Sales growth primarily driven by Western/Southern and Eastern Europe // Adjusted EBIT range of €290 m - €310 m // Improvement in adjusted
Slide 44: We would be delighted to answer your questions
September 2024 | Corporate Conference 44 We would be delighted to answer your questions CECONOMY Investor Relations Team Kaistr. 3 40221 Düsseldorf Germany ceconomy.de/en/investor-relations Fabienne Caron Dr. Kerstin Achterfeldt Arian Ebrahimi VP, Head of Investor Relations Sr. Investor Relations Ma
Slide 45: Slide 45
Slide 46: Disclaimer and Notes
September 2024 | Corporate Conference 46 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 and the permitted use of any market research data does not constitute (including all slides o
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