Currys plc Focus on Elkjøp
26 September 2024
Group Context
Alex Baldock
Group CEO
2
Group context
Leading omnichannel retailer of technology products and services
We are leaders in some of the world's largest technology markets
Number of
households1
Size of
market2
Online share of market2
Year
established
Number of
stores
Market
share
28.2m 13.0m
£20bn £12bn
63% 35%
1884 1962
298 415
23% 28%
Revenue
£8,476m
Colleagues
+24,000
Sources: Currys internal information
- Detail of households in Nordic countries: Sweden 4.9m, Norway 2.5m, Denmark 2.8m and Finland 2.8m. Source: National Statistical Offices
- GFK 2024
3
4
Group context
We help everyone enjoy amazing technology
Capable and | Easy to | Customers | Grow |
committed | Shop | for Life | Profits |
colleagues |
5
Group context
Nordics and UK&I benefit from Group scale and synergies
Benefits are in direct cost savings and shared knowledge
Cost Savings
Costs | Margin | |
Group technology | Group buying strength | |
function | ||
Improved terms with | ||
outsource partners | ||
and software | ||
providers | ||
Procurement |
Shared Knowledge
MarginsSales
B2B Group share of business
Credit
6%
B2C | ||||||
94% | B2B | |||||
Sold with | ||||||
Underweight categories | ||||||
Health & | Small domestic | Gaming | ||||
Beauty | appliances |
Services
Sources: Currys Internal information | 6 |
Group context
Group underpinned by a robust balance sheet
Expected to remain net cash positive even as pension deficit continues to reduce
Net debt & pension deficit
400
200
0 | |||||
(200) | £(75)m | ||||
(400) | £(213)m | ||||
£(346)m | |||||
(600) | £(313)m | ||||
(800) | |||||
£(820)m | £(805)m | ||||
(1,000) | |||||
18/19 | 19/20 | 20/21 | 21/22 | 22/23 | 23/24 |
Net cash/(debt) | Working capital facilities | Pension deficit (IAS19) | Total |
Refreshed revolving credit facility:
£525m facility until September 2028
- Option to extend for an additional year
- Supportive syndicate of six banks
- Fixed charge cover permanently reduced to a minimum of 1.5x
- Net debt/EBITDA unchanged at maximum of 2.5x
Sources: Currys Internal information | 7 |
Elkjøp overview
Fredrik Tønnesen
Chief Executive Officer, Elkjøp
Elkjøp overview
Experienced management team with strong track record
Bringing clarity, grip and energy to the business
Fredrik Tønnesen | 15+ | ||
CEO | |||
CEO Elkjøp from 2023 | |||
Joined Elkjøp in 2005 as Store Sales Assistant | |||
Vast experience across business including as held roles | |||
Joined in 2005 | such as COO and Managing Director of Elkjøp Norway | Joined in 2020 |
9+ | Stein Riibe | 30+ | Hans Trolläng | 25+ | Morten Syversen | 25+ |
COS | CCO | CBO (Brand & Digital) |
Lill Beate Pedersen | 15+ |
CFO |
Joined Elkjøp in 2020 as CFO
Previously CFO at Nordic IT companies Atea and Umoe IKT
Thomas Hegerlund | 20+ | Andy Gamble |
COO | CIO |
10+ | Marius Rødde | 20+ | Linda Frid Andresen | 25+ | Niclas Eriksson | 25+ | Peder Stedal | 25+ | Niko Sandström |
CTO | Managing Director, NO | Managing Director, SE | Managing Director, DK | Managing Director, FI |
Years of retail experience
Sources: Currys Internal information | 9 |
Elkjøp overview
Bringing technology products & services to customers since 1962
Long history of innovation and growth
Elkjøp founded in Norway
White goods modernizing homes, TV becoming part of everyday life
- 1962: 33 retailers established Elkjøp to realise better purchasing terms through larger volumes
- 1963: Launched first-of-its-kind "carpet bombing" marketing campaign across multiple channels
Chain
ESTABLISHED
The birth of the colour TV and VCR
- 1971: Brown goods1 introduced after winning legal case with incumbent duopoly
- 1976: Pioneering cinema commercials
Big stores to Norway
CD, video, camcorder, walkmans and satellite equipment
- 1984: First to market with hypermarket concept
- 1988: Centrally connected IT system rolled out in stores
Nordic expansion
Online and mobile
• | 1990s: First with |
customer guarantees | |
(Buy & Try and Price | |
Match) | |
• | 1992: TV commercials |
• | 1994: Entered Sweden |
• 1995: First NOK 1 mobile | |
offer | |
• | 1996: Entered Denmark |
• | 1997: Established Nordic |
Distribution Center | |
• | 1999: Entered Finland |
• | 1999: Elkjøp group |
acquired by Dixons |
Online presence established
MP3 and flat screens Everyone wants Apple!
- 2002: Elkjøp online
- 2000s: Click & Collect
- 2007: Entered kitchen segment
- 2008: First megastore
Digital transformation
Smart phones taking control of everyone's life
- 2013: One price (online/in-store)
- 2013: Launched
KNOWHOW2 - 2015: Acquired InfoCare3
- 2015: Automated smallbox warehouse
- 2016: Vipps mobile payment solution
- 2017: Electronic shelf labels (ESL)
Innovations to enhance the total customer journey
Smart homes coming to life
- 2020: Covid: 'Live shopping', 'Drive Thru'
- 2020: NGR4 rollout commenced
- 2022: Collected ~30 000 tons of e-waste
- 2024: NDC 3.0 rollout
Revenue development | +16% CAGR |
1962-2023/24 (BNOK) | |
Group plc |
1960 | 1970 | 1980 | 1990 | 2000 | 2010 | 2020 |
Source: Currys internal information | |
1) Brown goods = light electronic consumer durables (TVs, audio equipment, etc.) | 10 |
2) KNOWHOW: wifi-support (delivery and installation, testing, adapting/customising set-up, and help and support) | |
3) Infocare: Electricals service and repair company. Now rebranded to Elcare |
4) Next Generation Retail (NGR) IT platform