Fnac Darty Sa · EURONEXT:FNAC
Fnac Darty Sa — H1 2017 Earnings Presentation
27 slides from Fnac Darty Sa's earnings presentation, 2017
Slide 1: Fnac Darty Half-Year Results
FNAC DARTY - HALF-YEAR_ | RESULTS =
Slide 2: Ceconomy will have a minority shareholding in Fnac Darty
CECONOMY WILL HAVE A MINORITY SHAREHOLDING IN FNAC DARTY Artemis signed an agreement regarding the sale of its 24.3% stake in Fnac Darty’s share capital to Ceconomy Ceconomy will support Fnac Darty strategy and the management team Ceconomy will have the possibility to propose to the Board of Directo
Slide 3: H1 2017 Results Highlights
H1 2017 RESULTS HIGHLIGHTS Solid operational performance • H1 2017 Group sales down -2.7% YoY (-2.4% LFL) and +2.1% over 2 years • Q2 2017 Group sales down -2.6% YoY (-2.3% LFL) and +3.5% over 2 years Rapid progress of Fnac Darty integration • €34m synergies generated during the first half • €43m to
Slide 4: Solid sales performance in Q2 and H1
SOLID SALES PERFORMANCE IN Q2 AND H1 Change vs Q2 2016 Change vs H1 2016 France Q2 2017 H1 2017 €m Pro forma Like for like Pro forma Like for like • Strong underlying business, sales up excluding TV segment France and Switzerland 1,211 -3.5% -2.9% 2,517 -3.3% -2.8% International • Competitive enviro
Slide 5: Current operating income: strong growth
CURRENT OPERATING INCOME : STRONG GROWTH H1 2016 H1 2017 Change Gross Margin improved by 107 bp €m Pro Forma Pro Forma • Synergies REVENUES 3,304 3,216 -2.7% • Good control of commercial policy • Product and services mix Gross Margin 987 995 +107bp % Revenues 29.9% 30.9% Synergies : €43m at the end
Slide 6: France and Switzerland
FRANCE AND SWITZERLAND €m H1 2016 H1 2017 % Change Sales remain resistant despite a strong Revenues 2,602 2,517 -3.3% comparison basis due to TV digital switch in Life-for-like -2.8% April 2016 Current operating Excluding the TV segment, sales are up 4.9 32.4 n/a income +1.4% in H1 2017 Operating ma
Slide 7: Iberian Peninsula
IBERIAN PENINSULA €m H1 2016 H1 2017 Change Strong performance in Portugal Revenues 282 281 -0.4% Life-for-like 1.1% Good resistance of sales in Spain in a challenging environment Current operating 1.2 2.4 x2 income Small domestic appliances launch under Operating margin 0.4% 0.9% Fnac Home concept
Slide 8: Benelux
BENELUX €m H1 2016 H1 2017 % Change Stable sales over the period Revenues 420 418 -0.4% Good resistance of Fnac Belgium sales Life-for-like -1.9% and strong growth of e-commerce Current operating -2.5 -0.9 n/a income Vanden Borre sales up in H1 benefiting Operating margin -0.6% -0.2% from the integr
Slide 9: €43M synergies already delivered at the end of H1 2017
€43M SYNERGIES ALREADY DELIVERED AT THE END OF H1 2017 • Purchasing negotiations: positive effect on gross margin • Logistics optimisation started OPERATIONAL SYNERGIES • IT platforms convergence launched • New organisation for the head offices €43m of synergies • Introduction of a Darty space in th
Slide 10: P&L H1 2017: reported figures
P&L H1 2017 : REPORTED FIGURES Sales growth driven by the consolidation H1 2016(1) €m reported H1 2017 of Darty Revenues 1,572 3,216 Current operating income growth Current operating income -18 34 benefiting from synergies and Non-current operating income -23 -22 performance plan and expenses Operat
Slide 11: Free cash flow generation
FREE CASH FLOW GENERATION Last twelve €m H1 2016 H1 2017 months Cash flow from operations increase driven Pro Forma Pro Forma by strong operational performance Cash flow from operations before tax, dividends and 14 74 268 Change in WC impacted by : interest • Working capital optimization projects at
Slide 12: Balance sheet
BALANCE SHEET Strong equity position €m 31/12/2016(1) 30/06/2017 Controlled leverage : Covenants met ay June 30, 2017 Shareholders’ equity 1,048 939 Strong liquidity position: 400M€ RCF undrawn at the end of June Net Debt 207 503 Ownership of a significant real estate portfolio from Darty (1) Restat
Slide 13: Conclusion and Outlook
E FNAC DARTY CONCLUSION AND OUTLOOK
Slide 14: Conclusion and Outlook
CONCLUSION AND OUTLOOK In a context of weak markets in H1, the Group demonstrated the soundness of its model and the strong momentum of the Fnac Darty integration Base effects on sales will be less impactful in H2. The rapid execution of the synergies plan and the transformation of the operational a
Slide 15: Appendices
FNAC DARTY SERVICES _ APRES-VENTE ! i APPENDICES
Slide 16: Definitions
DEFINITIONS Pro-forma The figures present the situation by taking into account Darty’s inclusion in the scope of consolidation as from January 1, 2016. The pro-forma financial information includes the consolidated income statements of Fnac and Darty produced on an individual basis after alignment of
Slide 17: Reported & pro forma accounts definition
REPORTED & PRO FORMA ACCOUNTS DEFINITION Consolidation period for each perimeter Reported accounts Pro forma accounts Q2 2016 Q2 2017 Q2 2016 Q2 2017 FNAC Apr.-Jun. Apr.-Jun. Apr.-Jun. Apr.-Jun. DARTY / Apr.-Jun. Apr.-Jun. Apr.-Jun. H1 2016 H1 2017 H1 2016 H1 2017 FNAC Jan.-Jun. Jan.-Jun. Jan.-Jun.
Slide 18: Q1/Q2/H1 revenue restated
Q1/Q2/H1 REVENUE RESTATED Change vs Q1 2016 Change vs Q2 2016 Change vs H1 2016 at constant at constant at constant FX and FX and FX and Q1 2017 Like for like Q2 2017 Like for like H1 2017 Like for like comparable comparable comparable reported at constant reported at constant reported at constant s
Slide 19: Q2 and H1 revenue reported
Q2 AND H1 REVENUE REPORTED Change vs Q2 2016 Change vs H1 2016 at constant at constant FX Q2 2017 FX and Like for like H1 2017 and Like for like reported comparable reported comparable at constant FX at constant FX scope of scope of €m consolidation consolidation France and Switzerland 1,211 105.6%
Slide 20: Sales 2016 pro forma by quarter
SALES 2016 PRO FORMA BY QUARTER Change vs Q1 2015 Change vs Q2 2015 Change vs Q3 2015 Change vs Q4 2015 at at at at constant Like for constant Like for constant Like for constant Like for Q1 FX and Q2 FX and Q3 FX and Q4 FX and like like like like 2016 Pro comparab at 2016 comparab 2016 Pro comparab
Slide 21: P&L pro forma and reported H1 2016
P&L PRO FORMA AND REPORTED H1 2016 Period Accounting PPA H1 2016 H1 2016 in €m Reported(1) adjustements adjustements effects(2) Pro forma Revenues 1,572 1,733 -0 0 3,304 Current operating income -18 26 -4 -1 4 (1) Restated following the reclassification of Brazil in discontinued operations (2) PPA:
Slide 22: Pro forma EBITDA & EBITDAR
PRO FORMA EBITDA & EBITDAR H1 2016 H1 2017 Current operating income 4 34 Net depreciation and amortization charges 53 50 EBITDA 57 84 Rents 101 106 EBITDAR 158 191 22
Slide 23: Change in net debt
CHANGE IN NET DEBT Reported operating free cash flow: -€265m €m 74 -207 -503 -272 -21 -46 -17 -14 Net cash position Cash Flow from Change in working Corporate income Operating Interests and Others Net cash position at December 31, operations before capital tax paid investments net of equivalent at J
Slide 24: Balance sheet
BALANCE SHEET Assets in €m H1 2016(1) H1 2017 Equity and Liabilities in €m H1 2016(1) H1 2017 Share capital 20 27 Goodwill 333 1,523 Reserves related to equity 651 985 Intangible assets 70 469 Conversion reserves (7) (11) Tangible assets 149 617 Other reserves (38) (69) Investments in associates 2 2
Slide 25: Store network
STORE NETWORK December 31, 2016 June 30, 2017(2) Owned Franchised Total Owned Franchised Total France and 313 152 465 312 173 485 Switzerland(1) Iberian Peninsula 50 2 52 50 2 52 Benelux 147 0 147 152 0 152 Group(2) 510 154 664 514 175 689 (1) Included 6 foreign stores: 1 in Morocco, 1 in Cameroun,
Slide 26: Contact
CONTACT Stéphanie Constand VP Investor Relations and Financing Directrice Relations Investisseurs et Financement Fnac Darty Le Flavia - 9, rue des Bateaux-Lavoirs - 94200 Ivry-sur-Seine Tel : +33 1 55 21 18 63 Mob. : +33 7 50 12 03 78 http://www.fnacdarty.com/ 26
Slide 27: Disclaimer
DISCLAIMER Confidential IMPORTANT NOTICE: By attending the meeting where this presentation is given, or by reading the presentation slides, you agree to be bound by the following limitations and qualifications: Certain information included in this presentation is not based on historical facts but on