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
General Meeting 2020 | Public | 12 February 2020 | // 4 |
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 | |||
General Meeting 2020 | Public | 12 February 2020 | // 5 |
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
General Meeting 2020 | Public | 12 February 2020 | // 6 |
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
General Meeting 2020 | Public | 12 February 2020 | // 7 |
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 | |||
General Meeting 2020 | Public | 12 February 2020 | // 8 |
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
General Meeting 2020 | Public | 12 February 2020 | // 9 |
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 |
General Meeting 2020 | Public | 12 February 2020 | // 11 |
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.
General Meeting 2020 | Public | 12 February 2020 | // 12 |
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 |
General Meeting 2020 | Public | 12 February 2020 | // 13 |
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
General Meeting 2020 | Public | 12 February 2020 | // 14 |
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
General Meeting 2020 | Public | 12 February 2020 | // 15 |
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
General Meeting 2020 | Public | 12 February 2020 | // 18 |
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.
General Meeting 2020 | Public | 12 February 2020 | // 19 |
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
General Meeting 2020 | Public | 12 February 2020 | // 21 |
… 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
General Meeting 2020 | Public | 12 February 2020 | // 22 |
05
Summary
Summary
FOCUS | EXECUTE |
FIXING THE BASICS | TRANSFORMING THE |
BUSINESS |
We want to be customers' first choice with our omni-channel business model
General Meeting 2020 | Public | 12 February 2020 | // 24 |
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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