General Meeting

CECONOMY AG

Dr Bernhard Düttmann Düsseldorf, 12 February 2020

Agenda

04

01

02

03

05

Status of the

Performance

Outlook Financial

Performance

Summary

Financial Year 2018/19

transformation

Year 2019/20

Q1 2019/20

01

Performance FY 2018/19

In a year of transition CECONOMY has made significant operational and structural progress

Where we come from

Decline in profitability

Depreciations and

portfolio losses

Complex structures and

a high cost base

No implementation of the

strategic initiatives

What we have achieved

Stabilisation of profitability

Already some solutions for countries, portfolio companies and investments

Clearer responsibilities and a more competitive cost base

Progress on all initiatives,

detailing of the strategy ongoing

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CECONOMY has reached its financial targets

+0.8%

402 €m

Solid sales growth*

EBIT** on PY level

*fx-adjusted**EBIT excl. Fnac Dartyand excl. expenses in connection with the reorganization and efficiency program and management changes

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Online business still key sales driver in 2018/19,

Services & Solutions impacted by high comps

Online sales

2,935 €m

13.7% share of sales

Services sales*

1,498 €m

7.0% share of sales

*According to IAS 18

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Results slightly above expectations thanks to active cost management, higher income from Services and good sales development

Adjusted EBIT*

Change to PY

DACH

320

€m

+21

€m

Western/Southern Europe

146

€m

+23

€m

Eastern Europe

10

€m

-33 €m

Others**

-74 €m

-6 €m

Total

402

€m

+4

€m

*Adjusted EBIT excl. Fnac Darty andexcl. expenses in connection with the reorganization and efficiency program and management changes **Others: Incl. consolidation

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Earnings per share influenced by restructuring expenses, net financial result with positive contribution

FY 2018/19

Change to PY

Adjusted EBIT*

402

€m

+4

€m

Reported EBIT

224

€m

-196 €m

Net financial result

12

€m

+210

€m

Earnings before taxes

235

€m

+14

€m

Net result

121

€m

-99 €m

Earning per share

0.34 €

+0.27 €

*Adjusted EBIT excl. Fnac Darty andexcl. expenses in connection with the reorganization and efficiency program and management changes

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No dividend distribution foreseen for Financial Year 2018/19

  • Implementation of reorganization and efficiency program to increase competitiveness
  • Strengthening of equity and balance sheet

No dividend distribution

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02

Status of the transformation

Strategic initiatives in Financial Year 2018/19

DIGITAL

SERVICES &

CATEGORY &

ORGANISATION &

SUPPLY CHAIN

GROWTH

SOLUTIONS

COST STRUCTURE

MANAGEMENT

ONGOING

ONGOING

GRADUAL PROGRESS

SHORT TERM

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Reduction of complexity and costs especially in Germany

Reorganization and efficiency program

Administrative functions

Portfolio

ca. 85%

d. Einsparungen1

Reorganisation of administrative functions at CECONOMY,

Review of activities not being part of the core business

Media-Saturn Holding and the German country organisation

Savings amounting to 110 - 130 €m p.a.

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Activities to digitise our business model

Financial Year 2018/19

Financial Year 2019/20

New webshop

Roll-out new

platform developed

webshop platform

App user interface

Introduction assisted

improved

selling

Piloting online

market place

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Focus on close customer relationship in all countries

Financial Year 2018/19

New offer insurances and

warranties in Germany

Consistent service offer

at the Smartbars

Financial Year 2019/20

Internat. roll-out new offer insurances and warranties

Introduction own billing platform, for example for software

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Centralisation of category and supply chain management

Financial Year 2018/19

Pilot store for

Category

Management

Central pricing

system in Germany

Central logistics

platform in

Germany and the

Netherlands

Financial Year 2019/20

Increase of central

buying

Automation of space

and assortment

planning

Transformation of

supply chain

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26 MARCH 2020

STRATEGIC

UPDATE

03

Outlook FY 2019/20

Our assumptions for Financial Year 2019/20

Sales: Driven mainly by Online and Services & Solutions business

Gross margin: Pressure on goods margin still to continue, but overall gross margin trend improvement

Costs: Strong cost decline in line with communicated targets

Strategic initiatives: ongoing consistent implementation of all initiatives

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Outlook

FY 2018/19

FY 2019/20

Sales growth

+0.8%

slight increase

(fx-adjusted)

EBIT

402 €m

445 - 475 €m

Note: Outlook adjusted for portfolio changes, non-recurring earnings effects in connection with the reorganization and efficiency program as well as associates. EBIT 2019/20 incl. positive effect between 5 €m and 15 €m from the adoption of the new accounting standard IFRS 16.

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04

Performance Q1 2019/20

In the first quarter of 2019/20 we focused on Black Friday and further executed our initiatives…

1

Profitable

2

3 Significant

Investments

cost

Black Friday

in strategic

optimisation,

in-store and

initiatives

esp. in

online

Germany

Noticeable Group earnings improvement

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… and built the foundations for a successful full year

-0.5%

289 €m

319 €m

Sales change yoy*

Adjusted EBIT** at

Reported EBIT at

+20 €m yoy

+84 €m yoy

*Adjusted for currency effects and portfolio changes ** EBIT including effects from IRFS 16 adoption. Adjusted EBIT excl. non-recurring earnings effects in connection with the reorganization and efficiency program, adjusted for portfolio changes and excl. associates

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05

Summary

Summary

FOCUS

EXECUTE

FIXING THE BASICS

TRANSFORMING THE

BUSINESS

We want to be customers' first choice with our omni-channel business model

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Disclaimer

CECONOMY AG published this content on 12 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 February 2020 09:13:00 UTC