Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — Investor Presentation (May 2021)
35 slides from Fnac Darty Sa's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION May 2021
Slide 2: Contents
CONTENTS Fnac Darty at a glance 3 Q1 2021 revenue 4 FY 2020 results 8 New strategic plan, Everyday 16 Appendices 26 2
Slide 3: Fnac Darty at a Glance
FNAC DARTY AT A GLANCE A EUROPEAN OMNICHANNEL LEADER WITH AN EFFICIENT CENTRALISED OPERATIONS PLATFORM 2020 revenue breakdown by category • 7.5 bn€ Group revenue in 2020 – c.25,000 employees Technical products 49,5% • Top 3 European Omnichannel Retailer: Editorial products 15,5% • 30 million referen
Slide 4: Q1 2021 Revenue
Wf Q1 2021 REVENUE Ui FNAC DARTY
Slide 5: Q1 2021 Revenue
Q1 2021 REVENUE Change vs Q1 2020 • Q1 2021 sales at €1,818m, up +21.7% on a like- Revenue Q1 2021 for-like basis1 vs Q1 2020 €m Reported Like-for-Like1 – Ongoing restrictions impacting physical stores France & Switzerland 1,505 +24.8% +24.5% – Solid momentum in almost all product Iberian Peninsula
Slide 6: New Financing Strategy as of March 2021
NEW FINANCING STRATEGY AS OF 16 MARCH 2021 • Full repayment of its €500 million State-guaranteed Loan • Extension of its RCF line of credit to €500 million maturing maximum in 2028 • Repayment of the Senior Term Loan Facility of €200 million maturing in April 2023 and placement of its first converti
Slide 7: Outlook
OUTLOOK • The Covid crisis is still ongoing with restrictions remaining in some countries in which the Group operates, but with encouraging evolution to come – In France, reopening of all the stores to be expected from May 19th. France has entered a 3rd national lockdown from end of March with more
Slide 8: Results 2020
RESULTS 2020 FNAC DARTY
Slide 9: Solid 2020 Performance Despite the Crisis
SOLID 2020 PERFORMANCE DESPITE THE CRISIS Post 2nd lockdown Pre-lockdown Reopening of stores November 29 – December 31 January 1 – March 14 From May 11 to end of September Black Friday postponed to Dec 4 1st lockdown From May 11 to From July to end of 2nd lockdown March 15 – May 10 end of June Septe
Slide 10: 2020 Fnac Darty Main Achievements
2020 FNAC DARTY MAIN ACHIEVEMENTS • Success of the full scale Covid-19 stress test on Fnac Darty’s business model confirming the relevance of the Group’s strategy – Switch from offline to online sales and ability to cope with strong peaks in demand with proactive and targeted goods inventory policy
Slide 11: Group Revenues & Current Operating Income
GROUP REVENUES & CURRENT OPERATING INCOME • Sales growth of +0.6% on a like-for-like basis1 driven by the €m strong momentum in online sales despite the in-store traffic (IFRS 5 excluding BCC) 2019 2020 % Change impacted by two lockdowns in the context of the Covid-19 crisis • Gross margin rate reac
Slide 12: Group Reported Financial Results
GROUP REPORTED FINANCIAL RESULTS €m (IFRS 5 excluding BCC) 2019 2020 • Financial expense of €51m in 2020 including the cost of guarantee of the State-guaranteed loan Current operating Income 293 215 and related set-up costs amounting to €2.6m, and the impact of IFRS 16 totaling €22m Non-current oper
Slide 13: Simplified H1 & H2 2020 P&L vs. 2019
SIMPLIFIED H1 & H2 2020 P&L VS. 2019 €m H1 2019 H2 2019 H1 2020 H2 2020 Revenues 3,093 4,256 2,849 4,642 Gross Margin 951 1,285 844 1,342 % Revenues 30.7% 30.2% 29.6% 28.9% Total costs -905 -1,038 -902 -1,069 % Revenues 29.3% 24.4% 31.7% 23.0% Current operating income 46 247 -58 273 Non-current oper
Slide 14: Strong FCF Generation & Solid Liquidity Position
STRONG FCF GENERATION & SOLID LIQUIDITY POSITION €m • EBITDA1 down €59m in line with current operating (IFRS 5 excluding BCC) 2019 2020 income evolution EBITDA 626 567 • CAPEX2 of €99m, in line with the indication given by the Group IFRS 16 impact -231 -245 • Solid operating free cash-flow1 of €192m
Slide 15: Relaunch of a Shareholder Return Policy
RELAUNCH OF A SHAREHOLDER RETURN POLICY • Resilience of the Group’s business model in a year of unprecedented crisis • Solid cash flow generation and strong liquidity position Proposed distribution1 of an ordinary dividend of €1.00 per share in 2021 for the 2020 financial year, payment in cash 1Su
Slide 16: New Strategic Plan Everyday
NEW STRATEGIC PLAN EVERYDAY
Slide 17: Becoming a Responsible Digitized Retailer Delivering High-Value and Durable Services
BECOMING A RESPONSIBLE DIGITIZED RETAILER DELIVERING HIGH-VALUE AND DURABLE SERVICES 2016 - 2018 2018 - 2020 > 2021 everyday au service de nos clients everyday companion of our customers RESPONSIBLE DIGITIZED RETAILER POWERFUL BEST-IN-CLASS DELIVERING HIGH-VALUE AND LEADER OMNICHANNEL DURABLE SERVIC
Slide 18: 3 Main Ambitions
3 MAIN AMBITIONS Build a digitized omnichannel retail Lead durable behaviors Scale the next in-home subscription-based assistance service 18
Slide 19: Build a Digitized Omnichannel Retail
BUILD A DIGITIZED OMNICHANNEL RETAIL Best-in-class online capacities >50% of total Capex invested by 2025 to offer the best experience A profitable and digitized store network, fostering the expertise of salespeople and digital footprint An uncompromised acceleration to offer high-value products to
Slide 20: Lead Durable Behaviors
LEAD DURABLE BEHAVIORS A more durable offer, combined with customers’ orientation towards durable products The promotion of responsible behaviors, notably through eased access to repair ASSISTANCE & REPAIR DURABLE OFFER RECYCLING 135 c.2,5M SECOND LIFE “durability score” products repaired USED PRODU
Slide 21: Contribution to Reference CSR Strategy
THIS AMBITION WILL ACTIVELY CONTRIBUTE TO OUR REFERENCE CSR STRATEGY Acceleration on durable consumption +50% repaired products in 2025 vs 2019 Uncompromising behavior on the basics 35% women in the Group top 200 managers in 2025 (+11pts vs 2020) -50% transport & energy CO2 emissions in 2030 vs 2019
Slide 22: Scale the Next In-Home Subscription-Based Assistance Services
SCALE THE NEXT IN-HOME SUBSCRIPTION-BASED ASSISTANCE SERVICES Unlocking the full potential of our exclusive unlimited repairs subscription program To become the leader of in-home assistance solutions >2M subscribers to our unlimited repairs subscription program by 2025 22
Slide 23: Leveraging Proven Ability to Launch, Sell and Operate Subscriptions, and Repair
WE LEVERAGE OUR PROVEN ABILITY TO LAUNCH, SELL AND OPERATE SUBSCRIPTIONS, AND TO REPAIR Design the service No one else than Customers Non customers Fnac Darty Recruit customers Stores B2C Other B2B2C can offer such contact points a complete expertise to run this exclusive service and become >700 tec
Slide 24: Key Financial Drivers to Generate Recurring Cash Flows
KEY FINANCIAL DRIVERS TO GENERATE RECURRING CASH FLOWS Revenue growth mainly driven by increased online activity >30% online revenue penetration by 2025 o/w 50% is click & collect Significant contribution in gross margin of the subscription-driven service offering >2M subscribers to our unlimited re
Slide 25: A Step Further in Capital Allocation Ensuring Sustainable Shareholder Returns
A STEP FURTHER IN CAPITAL ALLOCATION ENSURING SUSTAINABLE SHAREHOLDER RETURNS Fund profitable growth Increased Reinvest in the business Opportunity-driven decision Free Cash Flow Tactical bolt-on M&A Incremental + + shareholder return Leverage1 of max 2.0x Controlled net debt Shareholder retur
Slide 26: Appendices
APPENDICES
Slide 27: Definitions
DEFINITIONS • Like-for-like sales growth : changes in revenue excluding exchange rate fluctuations, the impact of variations in scope and the impact of the opening and closing of directly owned stores since January 1, N-1. • Current operating income : difference between the total operating profit an
Slide 28: Q1-Q2-Q3 2020 Revenue vs. 2019
Q1-Q2-Q3 2020 REVENUE VS. 2019 Change vs. Q1 2019 Change vs. Q2 2019 Change vs. Q3 2019 €m (IFRS 5 At constant FX At constant At constant Q1 2020 and Q2 2020 FX and Q3 2020 FX and excluding BCC) Reported comparable Like-for-like Reported comparable Like-for-like Reported comparable Like-for-like sco
Slide 29: Q4 and FY 2020 Revenue vs. 2019
Q4 AND FY 2020 REVENUE VS. 2019 Change vs. Q4 2019 Change vs. 2019 €m At constant FX Q4 2020 At constant FX 2020 (IFRS 5 excluding BCC) and and comparable Reported Like-for-like Reported comparable Like-for-like scope of scope of consolidation consolidation France and Switzerland 2,348 11.3% 12.1% 1
Slide 30: Cash Flow Statement
CASH FLOW STATEMENT €m (IFRS 5, excluding BCC) 2019 2020 Net cash as of January 1 7 -18 Operating free cash Flow 173 192 Interest paid net of interest and dividends received -46 -25 Acquisition/disposal of subsidiaries net of cash transferred -107 -9 Acquisition/disposal of other financial assets (n
Slide 31: Simplified P&L
SIMPLIFIED P&L €m Reported (IFRS 5, excluding BCC) 2019 2020 Revenues 7,349 7,491 Current operating income 293 215 Non-current operating income and expenses -29 -16 Operating income 265 199 Financial expense -79 -51 Tax -72 -60 Consolidated net income from continuing operations, Group share 115 96 N
Slide 32: Balance Sheet
BALANCE SHEET Assets in €m FY 2019 FY 2020 Equity and Liabilities in €m FY 2019 FY 2020 Goodwill 1,654 1,654 Share capital 27 27 Intangible assets 511 506 Reserves related to equity 971 971 Conversion reserves -6 -5 Tangible assets 615 594 Other reserves 396 375 Rights of use relating to lease agree
Slide 33: Store Network
STORE NETWORK December 31, 2019 December 31, 2020 March 31, 2021 Owned Franchised Total Owned Franchised Total Owned Franchised Total France and 411 315 726 412 339 751 412 341 753 Switzerland(1) Iberian Peninsula 65 5 70 67 5 72 67 5 72 Belgium and 84 0 84 85 0 85 85 0 85 Luxembourg Group 560 320 8
Slide 34: 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 35: Investor Presentation
INVESTOR PRESENTATION