Ceconomy : Fact Sheet Q2/H1 2019/20

FACT SHEET Q2/H1 2019/20

• Sales adjusted for currency effects and portfolio changes decreased by -6.6%(-6.2 % on a like-for-like basis); reported sales declined by -7.7% to 4,631 €m; decline driven exclusively by store closures related to COVID-19; 2M sales (January-February) adjusted for currency effects and portfolio changes were up +3.7%
• Online sales1 increased by 23.7% yoy to 18.6% of total sales (Q2 18/19: 14.0%)
• Services & Solutions sales1 on prior year's level accounting for 6.0% of total sales (Q2 18/19: 5.6%), after a double-digit increase in the first two months of the second quarter
• Selective store expansion stopped in light of COVID-19 outbreak; 4 store closures, thereof 2 in Poland and 1 each in Germany and Italy; average store size at 2,617 sqm at the end of March 2020
• Adjusted EBIT2 declined by -157 €m yoy to -131 €m (incl. IFRS 16 effect of c. 3 €m), despite a strong yoy increase in the first two months of Q2; decline essentially attributable to negative sales and margin development (-2.3%p.) resulting from COVID-19 related store closures in March
• Impairment of Fnac Darty S.A. stake impacted reported EBIT by -268 €m; partly offset by the profit share of 34 €m
• Reported EBIT decreased by -387 €m yoy to -368 €m, including a restructuring-related earnings effect of -3 €m (Q2 2018/19: -39 Mio. €) in connection with the reorganization and efficiency program
• Tax rate in H1 2019/20 decreased to -36.6% (H1 18/19: 37.7%) negative tax rate essentially due to Fnac Darty S.A. impairment
• EPS declined by -0.89 € to -0.82 € yoy
• Change in net working capital (NWC) as per cashflow statement in H1 2019/20 improved by 221 Mio € mainly driven by higher increase in trade liabilities, resulting from higher starting point as of 30 September 2018 and the temporary extension of payments terms in the context of COVID-19
• Cash investments as per cash flow statement in H1 2019/20 increased by 19 €m yoy to 115 €m (or 2.5 % of sales) particularly due to cash-effective investment into the joint venture in Greece; modernization and expansion investments below PY
• Lease adjusted Free Cash Flow3 in H1 2019/20 improved by 86 €m to 7 €m due to lower NWC outflow

1. Excluding Greek MediaMarkt business (portfolio change)
2. Guidance-relevantEBIT excl. associates and non-recurring earnings effects in connection with the reorganization and efficiency program and adjusted for portfolio changes
3. Lease adjusted free cash flow subtracts the repayment of lease liabilities for better FCF comparability under IFRS 16

New Outlook FY 2019/20

The outlook is adjusted for portfolio changes. Non-recurring earnings effects in connection with the reorganization and efficiency program announced on 29 April 2019 are not included. The Coronavirus impact on the Company's business for the full year cannot be predicted with sufficient reliability at this time.

	FY 2019/20	thereof
	incl. IFRS 16	IFRS 16 effect
Fx-adjusted sales	Below prior year
EBIT (excl. associates)	Significantly below prior year	5 - 15 €m

Financial figures at a glance1,2

€m	Q2 2018/19	Q2 2019/20	H1 2018/19	H1 2019/20
Sales	5,015	4,631	11,894	11,453
Sales development
adjusted for currency and	-1.1%	-6.6%	1.1%	-3.1%
portfolio change effects
Like-for-like sales	-1.7%	-6.2%	0.7%	-2.8%
development
Gross margin	19.5%	17.3%	18.9%	17.9%
EBIT	19	-368	253	-49
Adjusted EBIT	26	-131	295	159
Net financial result	14	-23	15	-15
Tax rate	40.3%	20.9%	37.7%	-36.6%
Profit or loss for the	20	-309	167	-87
period
attributable to non-	-5	-15	34	38
controlling interest
attributable to
shareholders of	25	-295	132	-125
CECONOMY AG
EPS (€)	0.07	-0.82	0.37	-0.35

1From continuing operations.

2Due to the first-time application of new accounting standards (especially IFRS 16), some of the previous year's figures are not comparable.

Online and Services & Solutions1

							in %						in %
		Sales (€m)	Change (%)	of total sales		Sales (€m)	Change (%)	of total sales
	Q2 2018/19	Q2 2019/20					H1 2018/19	H1 2019/20
Online	699	859			22.9	18.6		1,706	1,907		11.8	16.7
Services & Solutions	282	279			-1.0	6.0	623	654		4.9	5.7

1Reported figures, including Greek MediaMarkt business (portfolio change)

Store closures and re-openings in light of COVID-191

	#stores 31/03/2020	Open Stores as of 13/05/2020	Closed stores as of 13/05/2020
Germany	428	426	2
Austria	52	52	-
Switzerland	26	26	-
Hungary	32	32	-
Belgium	27	27	-
Italy	116	114	2
Luxembourg	2	2	-
Netherlands	50	50	-
Portugal	10	10	-
Spain	88	88	-
Poland	88	88	-
Turkey	78	0	78
Sweden	28	28	-
CECONOMY	1,025	943 (92%)	82 (8%)
1Status as of 13/05/2020

Financial calendar

Q3/9M 2019/20 results	Thursday	13 August 2020
Q4/FY 2019/20 trading statement	Friday	23 October 2020
Q4/FY 2019/20 results	Tuesday	15 December 2020

Contact

CECONOMY AG

Kaistr. 3

40221 Düsseldorf, Germany

Investor Relations

Telephone	[phone]
Email	[e-mail]
Website	https://www.ceconomy.de/en/investor-relations/

Disclaimer

To the extent that statements in this document do not relate to historical or current facts, they constitute forward-looking statements. All forward-looking statements herein are based on certain estimates, expectations and assumptions at the time of publication of this document and there can be no assurance that these estimates, expectations and assumptions are or will prove to be accurate. Furthermore, the forward-looking statements are subject to risks and uncertainties including (without limitation) future market and economic conditions, the behaviour of other market participants, investments in innovative sales formats, expansion in online and multichannel sales activities, integration of acquired businesses and achievement of anticipated cost savings and productivity gains, and the actions of public authorities and other third parties, many of which are beyond our control, that could cause actual results, performance or financial position to differ materially from any future results, performance or financial position expressed or implied in this document. Accordingly, no representation or warranty (express or implied) is given that such forward-looking statements, including the underlying estimates, expectations and assumptions, are correct or complete. Readers are cautioned not to place reliance on these forward-looking statements.

This document is intended for information only, does not constitute a prospectus or similar document and should not be treated as investment advice. It is not intended as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this document nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. Historical financial information contained in this document is mostly based on or derived from the consolidated (interim) financial statements for the respective period. Financial information with respect to the business of MediaMarktSaturn Retail Group is particularly based on or derived from the segment reporting contained in these financial statements. Such financial information is not necessarily indicative for the operational results, the financial position and/or the cash flow of the CECONOMY business on a stand-alone basis neither in the past nor in the future and may, in particular, deviate from any historical financial information based on corresponding combined financial statements with respect to the CECONOMY business. Given the aforementioned uncertainties, (prospective) investors are cautioned not to place undue reliance on any of this information. No representation or warranty is given and no liability is assumed by CECONOMY AG, express or implied, as to the accuracy, correctness or completeness of the information contained in this document.

This document contains certain supplemental financial or operative measures that are not calculated in accordance with IFRS and are therefore considered as non-IFRS measures. We believe that such non-IFRS measures used, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with IFRS, enhance the understanding of our business, results of operations, financial position or cash flows. There are, however, material limitations associated with the use of non-IFRS measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non-IFRS measures used by us may differ from, and not be comparable to, similarly-titled measures used by other companies. Detail information on this topic can be found in CECONOMY's Annual Report 2018/19, pages 52-55. All numbers shown are as reported, unless otherwise stated. All amounts are stated in million euros (€ million) unless otherwise indicated. Amounts below €0.5 million are rounded and reported as 0. Rounding differences may occur.