Maisons du Monde : Présentation des résultats annuels 2023 et Plan de transformation moyen-terme 2024-2026 (en anglais uniquement)

FY 2023 Results

&

Medium-Term Transformation

Plan 2024-2026

Paris, 12 March 2024

Disclaimer

Forward-looking statements

This presentation contains certain statements that constitute "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts.

Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecast or implied by such forward-looking statements.

Accordingly, no representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved.

Any forward-looking statements included in this presentation speak only as of the date hereof and will not give rise to updates or revision. For a more complete list and description of such risks and uncertainties, refer to Maisons du Monde's filings with the French Autorité des marchés financiers.

2

FY 2023 results & Medium-Term Transformation Plan 2024-2026

Your speakers today

François-Melchior de Polignac

CEO

Denis Lamoureux

CFO

Gilles Lemaire

Deputy CFO

3

FY 2023 results & Medium-Term Transformation Plan 2024-2026

Maisonsdu Monde:

The preferred partner for your Inspired, Accessible and Sustainable Home

Love brand with unique assets:

multi-style offer, in-house design expertise, strong network and omnichannel capabilities, ESG leadership

Transformation underway, leveraging	Lack of customer centricity and financial
the assets, fixing customer centricity
discipline in recent years
and focusing on cash returns

Renewed Management Team and Board,

and a clear plan to restore the power

of the model

4

FY 2023 results & Medium-Term Transformation Plan 2024-2026

AGENDA

1.

2.

3.

4.

5.

LOOK BACK AND LEARNINGS

TRANSFORMING OUR COMMERCIAL MODEL

SIMPLIFY AND OPTIMIZE

2024-2026 TRAJECTORY

Q&A SESSION

Maisons du Monde:

A unique set of assets and a diversified business model

1.LOOKBACKANDLEARNINGS

A LOVE BRAND

A WELL-BALANCED MODEL

A LEADING ESG PLAYER

I n s p i r a t i o n

#1 inspirational brand

Source: IPEA Decoration Study 2023

(France)

P a s s i o n a t e e x p e r t s

30 designers

3,000 new products

created in house /year

M d M f a n s

#1 Instagram & Pinterest

communities*

2.6m

followers Instagram (France)

500k

followers Pinterest (France)

* Home & Furniture (France)

O m n i c h a n n e l

Unique omnichannel model

50%	Share
of digital sales

C a t e g o r i e s

Decoration & Furniture

58 Share

• of Decoration

G e o g r a p h i e s

Continental Europe

55 Share of sales

• in France

P r o f i t a b i l i t y m o d e l

Best in class gross margin

63% - 65%

E S G e n g a g e m e n t

#2brand committed

to social and/or

environmental causes

Source: Customer survey 2023

(France and Italy)

Good is beautiful 36% products in the

offering

Climate

A List 2023

CDP

(Carbon Disclosure Project)

6

FY 2023 results & Medium-Term Transformation Plan 2024-2026

Home & furniture market currently
experiencing "perfect storm" of macro headwinds…
					1.LOOKBACKANDLEARNINGS
Market drivers at historical level
			HOME FURNISHING MARKET
			IN A LOW CYCLE IN FRANCE

GEOPOLITICAL CRISIS ON MULTIPLE FRONTS FUELLINGUNCERTAINTIES

+0%

CAGR 2015-2019

HIGH SAVINGS RATE	UNPRECEDENTED INFLATION
UNPRECEDENTED IN FRANCE
SINCE 1950	IN LAST THREE DECADES

-5%

CAGR 2021-2023

Source: EUROMONITOR 2023 (R2015-R2022-F2023)

HOME FURNISHING MARKET/France Constant prices

CONSUMER CONFIDENCE AT

LOWEST LEVELS SINCE THE 70s

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FY 2023 results & Medium-Term Transformation Plan 2024-2026

…revealing a number ofoperational and financial deficiencies 1.LOOKBACKANDLEARNINGS

OPERATIONAL

FINANCIAL

2021 strategic plan based on overly optimistic growth assumptions post COVID

Primary focus on reported growth at the expense of like-for-likeperformance and value creation

Lack of customer-centricityat time of deep and historic shift in consumer behaviors (e.g. lack of tailored international commercial approach)

Insufficient emphasis on process, store

operations, and execution

(ex. store performance review, P&L ownership)

Oversized investments (Opex/Capex) to support 2021 growth plan

Expansion prioritized over cost control and cash

discipline (ex. peak inventory at 7.2 months in 2022)

Poor assessment of capital allocation decisions

and evaluation of ROCE (e.g. Modani)

Financial oversight systems lacking, leading to persistent guidance misses

Resulting in lack of lucidity and reactiveness throughout the organization

A TACTICAL PLAN RESPONSE LAUNCHED IN Q1 2023

CUSTOMERS - COSTS - CASH

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FY 2023 results & Medium-Term Transformation Plan 2024-2026

3C plan produced first tangible results in 2023
Partially mitigating revenue loss and initiating a cultural reset
			1.LOOKBACKANDLEARNINGS
PUT CUSTOMERFIRST	AGGRESSIVELY REDUCE ALL COSTS CHASE CASH AT ALL LEVELS

Customer centricity initiatives:

Product availability improvement

Tactical optimization of merchandising

Introduction of a more sophisticated approach

to pricing

Reinforcement of commercial

plan (promotional and non-promotional):

From -11 points gap vs. French retail panel in 2022 to -6 points gap in 2023

All costs and contracts

challenged

HQ reduction: -13% headcount

Worked hours in-storesstreamlined and refocused

Active store network management:

18 net closings o/w 5 transfers to affiliates

All CAPEX challenged with strict payback approach

Intensified scrutiny on all CAPEX allocation decision to achieve overall reduction

Decrease inventory level while

increasing product availability

Sequential sales

improvement H2 vs H1 2023

Gross cost savings	Inventory reduction
of €35m in 2023 (SG&A and Logistic)	of €43m vs 2022

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FY 2023 results & Medium-Term Transformation Plan 2024-2026

FY 2023 EBIT

Pressure on EBIT margin contained despite significant sales decline

EBIT Evolution

(in €m and bps)

68.5

5.5%

+33.2		45.8
-50 bps
-160 bps	4.1%
	-3.3

+24.1

+80 bps

-20 bps

-76.7

1.LOOKBACKANDLEARNINGS

Drop in Gross margin due to volume decrease while GM rate remained flat

• Savings from freight rate normalization and positive contribution of Marketplace reinvested in promotion and price accessibility as well as old stock liquidation

Lower logistics costs due to cost optimization initiatives

• Better logistic performance and lower proportion of home delivery vs in-store sales

Store & Central costsreined in

• 3C Plan implementation effect more than compensating for inflation
• Other savings driven by lower volumes and one-off items (e.g. gift cards write-off)

Slight increase in D&A

• Start of amortization of our second distribution center in Northern France
• Capex reduction initiated in 2023, only partially flowing through D&A

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FY 2023 results & Medium-Term Transformation Plan 2024-2026