Ceconomy Ag · XETR:CEC
Ceconomy — Q2/H1 2023/24 Earnings Presentation
45 slides from Ceconomy's earnings presentation, May 15, 2024
Slide 1: Results Presentation Q2/H1 2023/24
Results Presentation Q2/H1 2023/24 15 May 2024
Slide 2: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 3: Experience highlights: fast-paced innovation and transformation
Results Presentation Q2/H1 2023/24 on 15 May 2024 3 Experience highlights: fast-paced innovation and transformation 90 MIN CHAMPION ONLINE DELIVERY NETHERLANDS ACCELERATION Ultra-fast MediaMarktSaturn Reclaimed leadership position Broadening omnichannel delivery in Germany - with in the Netherlands
Slide 4: After a strong Q1, we accelerated our momentum in Q2
Results Presentation Q2/H1 2023/24 on 15 May 2024 4 After a strong Q1, we accelerated our momentum in Q2 / 6.5% Sales growth, fueled by Stores strong 5.1% like-for-like +6.5% +€26 m +5 points / Market share gains in 8 out of Q2 adjusted Q2 Sales NPS increase 11 countries EBIT1 growth growth1 vs. PY
Slide 5: Our operating highlights in Q2
Results Presentation Q2/H1 2023/24 on 15 May 2024 5 Our operating highlights in Q2 Strong top line momentum Growth businesses Countries / B&M Sales up +5.8%1 YoY / Marketplace: GMV more than / Strong Sales performance in doubled Spain, Türkiye, the Benelux, / Online Sales up +8.8%1 YoY / Retail medi
Slide 6: Key pledges: good progress across the board
Results Presentation Q2/H1 2023/24 on 15 May 2024 6 Key pledges: good progress across the board Target Progress Business fields KPI FY 2021/22 FY 2022/23 FY 2025/26 Q2 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% 50% >
Slide 7: Operational Services & Solutions and Online stand out
Results Presentation Q2/H1 2023/24 on 15 May 2024 7 Operational Services & Solutions and Online stand out Operational Services & Solutions Online & Marketplace → Growth in most service categories → Momentum continues / Improved momentum in Telecommunication, Repair and / Online Sales +8.8%1 YoY Insu
Slide 8: Deep dive Retail Media
Results Presentation Q2/H1 2023/24 on 15 May 2024 8 Deep dive Retail Media: our first party data analytics remained a substantial growth driver Digital Out Of Home (DOOH) / Continuous strong growth momentum Instore Ads with income increasing nearly five times in Q2 Reporting (Omnichannel) Upcoming /
Slide 9: Continued growth for eco friendly products in H1
Results Presentation Q2/H1 2023/24 on 15 May 2024 9 Continued growth for eco friendly products in H1 BetterWay Sales ↗ +3.1%p. Substantial growth of sustainable Sales share 13.7% share and assortment 10.6% / BetterWay sales push across the group Strong progress on sustainable service Trade-in produc
Slide 10: Strengthened momentum in Q2 leads to a strong H1 performance
Results Presentation Q2/H1 2023/24 on 15 May 2024 10 Strengthened momentum in Q2 leads to a strong H1 performance SALES growth1 6.5% 4.8% 3.7% Q1 Q2 H1 Adj. EBIT1 improvement 44 26 18 Q1 Q2 H1 1Sales adjusted for fx- and portfolio effects, pre-IAS 29. EBIT at current rate, additionally adjusted for
Slide 11: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 12: Sales trend acceleration in Q2 led to positive EBIT
Results Presentation Q2/H1 2023/24 on 15 May 2024 12 Sales trend acceleration in Q2 led to positive EBIT Q2 H1 / Sales growth driven by both B&M and Sales +6.5%1 +4.8%1 Online Sales (€m) ↗ ↗ (+0.6%) (-0.4%) / Strong like-for-like performance of 5.1% 12,368 12,318 in Q2 (3.9% in H1) 5,302 5,334 2022/
Slide 13: Strong top line growth and profitability in Western & Southern Europe
13 Strong top line growth and profitability development particularly in Western & Southern Europe Segments Q2 2023/24 Western/ DACH Eastern DACH Southern Others2 CECONOMY / Expanding market share and cost-saving €m Europe Europe initiatives bolster almost stable EBIT Sales (pre-IAS 29) 2,839 1,681 7
Slide 14: H1 EBIT progress bodes well for our FY adjusted EBIT range
Results Presentation Q2/H1 2023/24 on 15 May 2024 14 H1 EBIT progress bodes well for our FY adjusted EBIT range of €290 m-€310 m Segments H1 2023/24 Western/ DACH Eastern DACH Southern Others2 CECONOMY / EBIT supported by market share momentum €m Europe Europe and cost savings measures Sales (pre-IA
Slide 15: Very robust performance in all our growth businesses
Results Presentation Q2/H1 2023/24 on 15 May 2024 15 Very robust performance in all our growth businesses Q2 H1 Services & / Strong acceleration exceeded group Sales Solutions ↗ +14.5% ↗ +8.8% growth in Q2 Sales1,2 – Operational Services & Solutions shows (€m) 741 strong performance except for finan
Slide 16: First party (1P) Online Sales climbed in Q2
Results Presentation Q2/H1 2023/24 on 15 May 2024 16 First party (1P) Online Sales climbed in Q2 Q2 H1 1P Online / Strong Sales growth acceleration in Q2 in Sales1 (€m) ↗ +8.8% ↗ +5.7% DACH and Eastern Europe / Online share including Marketplace reached nearly 23% in Q2 2,985 / Strong increase in We
Slide 17: Continued Marketplace growth – improving momentum for Private Label
Results Presentation Q2/H1 2023/24 on 15 May 2024 17 Continued Marketplace growth – improving momentum for Private Label Q2 H1 Market- / GMV growth continues, fueled by strong place GMV ↗ +109% ↗ +119% momentum in every country (€m) / Successful launch in the Netherlands, roll out in Italy in H2 202
Slide 18: Gross margin uplift and cost control drive EBIT improvement
Results Presentation Q2/H1 2023/24 on 15 May 2024 18 Gross margin uplift and cost control drive EBIT improvement Q2 H1 Gross / Gross margin improved again in Q2 margin1 (%) ↗ +60bp ↗ +50bp thanks to better product mix and growth businesses 17.2% 17.8% 17.2% 17.7% / Product margin improved in most re
Slide 19: Our efficiency programmes continue to provide strong support
Results Presentation Q2/H1 2023/24 on 15 May 2024 19 Our efficiency programmes continue to provide strong support Run rate savings (€m) Restructuring costs (€m) 130 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Run rate Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cum from the 2022/23 2023/24 end of 2022/23 2023/24 2023/24 / Incremental
Slide 20: EPS lifted by higher EBIT and accelerated use of deferred tax asset
Results Presentation Q2/H1 2023/24 on 15 May 2024 20 EPS lifted by higher EBIT and accelerated use of deferred tax asset Adjusted EBIT to EPS Q2 €m 2022/23 2023/24 Change €m Adjusted EBIT Adjusted EBIT -211 5 +26 / Improvement driven by increase in Sales and gross margin Non-recurring items -85 39 +
Slide 21: Our robust operational performance resulted in tripled H1 EPS
Results Presentation Q2/H1 2023/24 on 15 May 2024 21 Our robust operational performance resulted in tripled H1 EPS Adjusted EBIT to EPS H1 €m 2022/23 2023/24 Change €m Adjusted EBIT Adjusted EBIT 2091 253 +44 / Improvement driven by increase in Sales and gross margin Non-recurring items -94 10 +104
Slide 22: Deep Dive Tax: Long term improvement of tax rate
Results Presentation Q2/H1 2023/24 on 15 May 2024 22 Deep Dive Tax: Long term improvement of tax rate Tax rate development / Convergenta transaction, completed in May 2022, enabled the full use of tax loss carry forwards FY 20/21 FY 22/23 H1 23/24 / New German legislation (Growth opportunities law)
Slide 23: Successfully achieved neutral free cash flow and increased product availability
Results Presentation Q2/H1 2023/24 on 15 May 2024 23 Successfully achieved neutral free cash flow and significant increase in product availability / Improvement of all operational Free cash flow (FCF) in H1 2023/24 (YoY change, €m) FCF drivers apart from working capital / Q2 FCF + €100 m increase Yo
Slide 24: Agenda
I. Business update II. Financial performance III. Outlook and summary Agenda
Slide 25: Post Q2 we now specify our outlook for 2023/24
Results Presentation Q2/H1 2023/24 on 15 May 2024 25 Post Q2 we now specify our outlook for 2023/24 // Slight increase in currency- and portfolio-adjusted total sales // Adjusted EBIT range of €290 m - €310 m // All segments are expected to contribute to the sales growth // Improvement in adjusted E
Slide 26: We are looking forward to the upcoming sport events
Results Presentation Q2/H1 2023/24 on 15 May 2024 26 We are looking forward to the upcoming sport events / All our countries are qualified for the European Football Championship! / Launch of customised private label products with country colours / Supported by state-of-the-art international marketin
Slide 27: Summary of Q2 and H1 results
Results Presentation Q2/H1 2023/24 on 15 May 2024 27 Summary of Q2 and H1 results 01 02 Accelerating momentum in Q2 We gained market share and strong H1 performance 03 04 Our transformation programme We improve the customer is gaining traction experience 05 06 Our focus remains on cost, We now expec
Slide 28: Disclaimer and Notes
Results Presentation Q2/H1 2023/24 on 15 May 2024 28 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 (includ
Slide 29: Questions & Answers
Results Presentation Q2/H1 2023/24 on 15 May 2024 29 Questions & Answers Dr. Karsten Wildberger Dr. Kai-Ulrich Deissner
Slide 30: Financial calendar
Results Presentation Q2/H1 2023/24 on 15 May 2024 30 Financial calendar Conference Erste Q3/9M FY 2023/24 trading Q4/12M Bank Oesterreich results statement results 06 June 2024 14 August 2024 29 October 2024 18 December 2024
Slide 31: We would be delighted to answer your questions
Results Presentation Q2/H1 2023/24 on 15 May 2024 31 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
Slide 32: Appendix
Appendix
Slide 33: Retail media product portfolio
33 Retail media product portfolio Product ads pushed to visible position in Detailed product descriptions provided by Sponsored product listing of search results; auction- A+ supplier via automated technical interface to Ongoing Product based process make product more tangible, e.g., product Content
Slide 34: Reported EBIT bridge & portfolio effects
Results Presentation Q2/H1 2023/24 on 15 May 2024 34 Reported EBIT bridge & portfolio effects Q2 H1 / At equity investment positively impacted Adjusted EBIT1 263 by Fnac Darty result 253 (€m) -1 / Others includes IAS 29 Effect of €4 m in -28 39 Q2 and €-21 m in H1 44 40 5 1 -1 Adjusted Efficiency Ot
Slide 35: Increase in gross margin thanks to better product mix and new businesses
Results Presentation Q2/H1 2023/24 on 15 May 2024 35 Increase in gross margin thanks to better product mix and new businesses Q2 Gross / Gross margin strongly improved in Q2 margin1 (as % of / Product margin driven by better product sales) mix 17.2% 17.8% / Positive impact from new growth businesses
Slide 36: Net working capital Q2 2023/2024
Results Presentation Q2/H1 2023/24 on 15 May 2024 36 Net working capital Q2 2023/2024 Q2 2023/24 €m 31/12/2022 31/03/2023 Change 31/12/2023 31/03/2024 Change Inventories 3,354 3,061 -292 3,549 3,108 -441 Trade receivables and similar claims 475 418 -57 557 522 -35 Receivables due from suppliers 1,52
Slide 37: Net working capital H1 2023/2024
Results Presentation Q2/H1 2023/24 on 15 May 2024 37 Net working capital H1 2023/2024 H1 2023/24 €m 30/09/2022 31/03/2023 Change 30/09/2023 31/03/2024 Change Inventories 3,176 3,061 -115 2,918 3,108 190 Trade receivables and similar claims 440 418 -22 490 522 32 Receivables due from suppliers 1,296
Slide 38: Liquidity profile overview
Results Presentation Q2/H1 2023/24 on 15 May 2024 38 Liquidity profile overview Cash & cash equivalents (in €m)1 / Liquidity minimum during summer months in 2023 above prior year Delta vs FY21/22 +3% +26% / RCF undrawn over the entire period / RCF extended (€350 m) 2,634 / Sound cash level in Q2 2,2
Slide 39: Q2/H1 2023/24 hyperinflation accounting
Results Presentation Q2/H1 2023/24 on 15 May 2024 39 Q2/H1 2023/24 hyperinflation accounting Impact of IAS 29, fx- and Portfolio effects on Q2/H1 Sales growth Sales (% growth) Q2 / Positive impact from IAS 29 accounting on Sales in Q2 and H1 2023/24 6.5 / Switching KPIs analysis to pre-IAS 29 2.6 mo
Slide 40: Application of IAS 29, hyperinflation accounting
Results Presentation Q2/H1 2023/24 on 15 May 2024 40 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 Q2 5,302 +32 5,270 5,334 +45 5,289 H1 12,368 +18 12,
Slide 41: From reported to adjusted net profit
Results Presentation Q2/H1 2023/24 on 15 May 2024 41 From reported to adjusted net profit Q2 2022/23 Q2 2023/24 Q2 2022/23 Q2 2023/24 €m Change Change Comment reported reported adjusted adjusted Reported EBIT -106 44 +151 -106 44 +150 Adjustment: Portfolio 70 4 -66 Sweden and Portugal Adjustment: IA
Slide 42: From reported to adjusted net profit
Results Presentation Q2/H1 2023/24 on 15 May 2024 42 From reported to adjusted net profit H1 2022/23 H1 2023/24 H1 2022/23 H1 2023/24 €m Change Change Comment reported reported adjusted adjusted Reported EBIT 115 263 +148 115 263 +148 Adjustment: Portfolio 76 4 -72 Sweden and Portugal Adjustment: IA
Slide 43: Store network
Results Presentation Q2/H1 2023/24 on 15 May 2024 43 Store network Stores (#) 31/12/2023 Openings Closures 31/03/2024 Germany 398 0 0 398 Austria 54 1 0 55 Switzerland 25 0 0 25 Hungary 39 0 0 39 DACH 516 1 0 517 Belgium 22 1 0 23 Italy 130 1 0 131 Luxembourg 2 0 0 2 Netherlands 55 0 0 55 Spain 110
Slide 44: New segment reporting from 2023/24
Results Presentation Q2/H1 2023/24 on 15 May 2024 44 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 Western/Southern Europe 2,235 1,630 1,497 1,675 7,037 Eastern Europe 742 67
Slide 45: CECONOMY
O CECONOMY