Ceconomy : Fact Sheet Q3/9M 2019/20

FACT SHEET Q3/9M 2019/20

• Q3 sales adjusted for currency effects and portfolio changes decreased by -8.4%(-7.6% on a like-for-like basis); reported sales declined by -10.0% to 4,107 €m; the decline is exclusively the result of COVID-19 related store closures in April; with the gradual reopenings, the business returned to growth in May, which further accelerated in June
• Online sales1 increased by 145.1% yoy reaching 35.2% of total sales (Q3 18/19: 13.0%); almost 3 million new online customers recorded in webshops since March
• Services & Solutions sales1 decreased by -17.8% yoy accounting for 5.5% of total sales (Q3 18/19: 6.1%) due to store closures in April, lower store traffic thereafter and lower service attachment rate online
• Adjusted EBIT2 with -45 €m on prior year's level thanks to COVID-19 related cost measures and sales recovery in May and June, despite lower gross margin in the quarter (adj. -2.6%p.)
• Reported EBIT increased by 61 €m yoy to -64 €m (Q3 2018/19: -126 €m); prior year was affected by 80 €m restructuring-related expenses; current year includes 19 €m non-recurring expenses related to asset impairments for COVID-19 induced permanent store closures
• Tax rate in 9M 2019/20 at -54.5%; negative tax rate essentially due to Fnac Darty S.A. impairment booked in Q2 2019/20
• EPS declined by -0.16 € to -0.29 € yoy due to higher taxes despite higher yoy earnings
• Change in net working capital (NWC) as per cashflow statement in 9M 2019/20 with -654 €m broadly on prior year's level. Comparatively lower increase in inventories and a comparatively higher reduction in receivables due from suppliers compensated for significantly lower trade liabilities and similar liabilities
• Cash investments as per cash flow statement in 9M 2019/20 increased by 10 €m yoy to 141 €m (or 0.9% of sales), mainly due to cash-effective investment into the joint venture in Greece; modernization and expansion investments below prior year
• Lease-adjustedFree Cash Flow3 in 9M 2019/20 improved by 149 €m to -376 €m
• 2 store closures in Germany and 1 opening in Italy in Q3 2019/20; average store size at 2,608 sqm at the end of June 2020
• Liquidity situation reflects positive sales development in June; additional syndicated credit facility tranche of 1.7 €bn concluded in mid-Maywith the participation of the KfW has not been used at any time

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

New Outlook FY 2019/20

Based on the preliminary business development of the first nine months as well as the current insights, the most important key figures for FY 2019/20 were specified on 16 July 2020, yet under the assumption that there are no further COVID-19 related restrictions in the remaining months of the fiscal year that will again impact the business

The outlook is adjusted for portfolio changes. Non-recurring earnings effects in connection with

1. the reorganization and efficiency program announced on 29 April 2019, (2) COVID-19 related store closures and (3) the introduction of the New Operating Model are not included.

	FY 2019/20	thereof
	incl. IFRS 16	IFRS 16 effect
Fx-adjusted sales	Slight decline
Adjusted EBIT (excl. associates)	165 - 185 €m	5 - 15 €m

Financial figures at a glance1,2

€m	Q3 2018/19	Q3 2019/20	9M 2018/19	9M 2019/20
Sales	4,565	4,107	16,459	15,559
Sales development
adjusted for currency and	0.2%	-8.4%	0.9%	-4.6%
portfolio change effects
Like-for-like sales	0.1%	-7.6%	0.5%	-4.2%
development
Gross margin	18.7%	15.9%	18.8%	17.4%
EBIT	-126	-64	128	-113
Adjusted EBIT	-43	-45	252	113
Net financial result	12	-13	27	-28
Tax rate	45.4%	-69.1%	32.2%	-54.5%
Profit or loss for the period	-62	-131	105	-218
attributable to non-	-14	-27	21	11
controlling interest
attributable to
shareholders of	-48	-104	84	-229
CECONOMY AG
EPS (€)	-0.13	-0.29	0.23	-0.64

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
	Q3 2018/19	Q3 2019/20					9M 2018/19	9M 2019/20
Online	594	1,446			143.3	35.2		2,300	3,353		45.7	21.5
Services & Solutions	277	225			-18.5	5.5	900	879		-2.3	5.7

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

Store network

	31/03/2020	Openings	Closures	30/06/2020
Germany	428	-	2	426
Austria	52	-	-	52
Switzerland	26	-	-	26
Hungary	32	-	-	32
DACH	538	-	2	536
Belgium	27	-	-	27
Italy	116	1	-	117
Luxembourg	2	-	-	2
Netherlands	50	-	-	50
Portugal	10	-	-	10
Spain	88	-	-	88
Western/S. Europe	293	1	-	294
Poland	88	-	-	88
Turkey	78	-	-	78
Eastern Europe	166	-	-	166
Sweden	28	-	-	28
Others	28	-	-	28
CECONOMY	1,025	1	2	1,024

Financial calendar

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.