Ceconomy : Investor Presentation February 2020

INVESTOR PRESENTATION

February 2020

DISCLAIMER

AND NOTES

BY ACCESSING THIS PRESENTATION YOU AGREE TO THE FOLLOWING RESTRICTIONS

This document and the presentation to which it relates 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 and should not be construed as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of CECONOMY AG ("CECONOMY").

Historical financial or operative information contained in this presentation, if not taken or derived from our accounting records or our management reporting or unless otherwise stated, is taken or derived from the unaudited combined financial statements of CECONOMY for the respective period and not from the consolidated (interim) financial statements of the former METRO Group. The combined financial statements of CECONOMY have not been audited and may also deviate substantially from

(segmental or other) information in the consolidated financial statements of the former METRO Group and, thus, may not be fully comparable to such financial statements. Historical information contained in this presentation which is not taken or derived from the unaudited combined financial statements 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. In addition, the historical financial and operative information included in this presentation 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, readers 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, express or implied, as to the accuracy, correctness or completeness of the information contained in this presentation. All numbers shown are before special items, 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.

This presentation 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.

To the extent that statements in this presentation 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 presentation 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 presentation. 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.

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Disclaimer and Notes (cont'd)

We do not undertake any obligation to publicly update any forward-looking statements or to conform them to events or circumstances after the date of this presentation. This presentation contains forecasts, statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data on the Company's business and markets (together the "market data") provided by third party sources as interpreted by us. This market data is, in part, derived from published research and additional market studies prepared primarily as a research tool and reflects estimates of market conditions based on research methodologies including primary research, secondary sources and econometric modelling. We want to point out that part of the market data used has been collected in the framework of a market survey carried out as a panel observation. The panel is a regular survey monitoring sales of specific products and product categories, using a range of distribution channels including internet, retail outlets (e.g. high street, mail order) and companies (e.g. resellers). The market data does not represent actual sales figures globally or in any given country; rather, the market data represents a statistical projection of sales in a given territory and is subject to the limitations of statistical error and adjustments at any time (e.g. reworks, changes in panel structure). The representativeness of the market data may be impacted by factors such as product categorisation, channel distribution and supplier universe identification and statistical sampling and extrapolation methodologies. The market data presented is based on statistical methods and extrapolation. In addition, market research data and trend information as interpreted or used by

CECONOMY is based on certain estimates and assumptions and there can be no assurance that these estimates and assumptions as well as any interpretation of the relevant information by CECONOMY are accurate. The market research institutes which data CECONOMY used as basis for this presentation are neither registered broker dealers nor financial advisors and the permitted use of any market research data does not constitute financial advise or recommendations.

CECONOMY operates, in part, in industries and channels for which it is difficult to obtain precise market data. Such market data should therefore be considered with caution and not be solely relied on as market studies are often based on information and assumptions that may be inaccurate or inappropriate, and their methodology is inherently predictive and speculative. We have no reason to believe that such information is false or misleading or that any material fact has been omitted that would render such information false or misleading. Our own estimates have not been checked or verified externally. They may differ from estimates made by competitors of our group or from future studies conducted by market research institutes or other independent sources. Information prepared by third parties has not been independently verified by us or any other party.

Therefore you acknowledge that the market data presented is based on statistical methods and extrapolation and so due to the nature of such data no guarantee for completeness and accuracy can be given by us or any third party. Neither we nor any third party, including those third parties whose data is cited in this

presentation, warrant that the data collected, processed and analysed by it in accordance with the rules and methods of market and social research, will be able to be used by in a specific way, in particular not in the legal sense of an expert report. It should be noted that all liability for completeness and correctness of the information provided by us or any third party is explicitly excluded. Under no circumstance shall a third party whose data is cited in this presentation be liable for damages incurred through or in connection with your or our interpretation of the provided information. Neither we nor any third party shall be responsible for any loss or damage arising out of your or our use or reliance upon the information contained herein, or for actions of and decisions taken by us, you or any third parties that receive this information. Neither we nor any third party give any representations as to the accuracy of the market data included in this presentation. The third parties whose data is cited in this presentation are neither registered broker-dealers nor financial advisors and the permitted use of any market research data does not constitute financial advice or recommendations.

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Agenda

01 02 03

CECONOMY	Q1 19/20 &	Operations
at a glance	Outlook	Update

CECONOMY at a glance

CECONOMY is Europe's largest Consumer Electronics platform

Shareholder structure

(based on ordinary shares1)

Product category breakdown

Other3

Highlights

Free float

Haniel

Entertainment 4% White

9%Goods

 Europe's largest Consumer Electronics platform

22.7%

47.2%

6.6% 14.3% Meridian

9.1% Stiftung

Beisheim freenet

Sales per segment

Eastern Europe Others 7%

		2%
W. & S.	32%	59%	DACH
Europe

23%

Brown 21%
Goods	22%

21% Telecom

Computer Hardware2 & Accessories

EBIT per Segment (excl. Others)

Eastern Europe

2%

W. & S.

Europe 31%

67% DACH

 21.5 €bn of sales, c. 402 €m EBIT in FY 18/19

 >2.9 €bn online sales and 1.5 €bn Services &

Solutions sales in FY 18/19

 Leading position in 7 out of 13 countries

 2 strong brands: MediaMarkt and Saturn

 Multi-channel 1,000+ store network

 Solid financial framework

 Minority investments in Fnac Darty (c. 24%) and

M.video (c. 15%)

1Calculated on the basis of the number of voting rights disclosed pursuant to section 40 para. 1 sentence 1 WpHG; 2Telecommunication devices such as iPads without SIM card included; 3Includes in essence Photo&Office equipment.

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We have a strong set of assets and operate in an attractive market

• Leading multi-channel player for Consumer Electronics
• Differentiated value proposition with Services & Solutions offering
• Large customer base
• Trusted brands
• Strong and trusted partner of suppliers

• • Digital opens up new product categories
• Ageing population is increasingly seeking technical support
• • Connectivity and product complexity drive rising demand for Services & Solutions

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Our store network is an asset and integral part of our omni-channel and services strategy

Advantages of CECONOMY's strong physical presence

• Offering customers tangible product experiences
• Showroom for exclusive and high- end products offering suppliers visibility of brands
• Instant in-store repairs of mobile devices
• Personal contact and personalized customer service
• Delivery hubs & pick-up places/return points for online orders

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Ongoing progress in the Online and Services & Solutions business

Strong Online business					Increasing Services & Solutions business
% of total	10.6%	12.1%	13.7%				% of total	6.2%			6.9%	7.0%
sales							sales
	2,300	2,592	2,935						1,344			1,478	1,498
Sales (€m)							Sales (€m)
	16/17	17/18	18/19						16/17			17/18	18/19
Growing pick-up rate						Ongoing rightsizing of stores
			47%				Number	996			1,022	1,042
		42%				of stores
	40%
								-3%				-3%
In % of							Avg. store	2,808			2,724	2,636
orders
						size m²
	16/17	17/18	18/19						16/17			17/18	18/19
Note: Business figures represent the continuing operations of CECONOMY, i.e. excl. the Russian MediaMarkt business.
		Investor Presentation									Public					February 2020	// 9

Our full focus is on the execution of our four strategic initiatives

DIGITAL		SERVICES &		CATEGORY &		ORGANIZATION &
GROWTH		SOLUTIONS		SUPPLY CHAIN		COST STRUCTURE
				MANAGEMENT
ONGOING	ONGOING	GRADUAL PROGRESS	SHORT TERM

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We have accelerated our digital growth efforts

Consolidation of six different webshop platforms to one common IT platform

Significantly improved webshop front-endin Germany and new app with improved user interface

3rd largest webshop in Germany, incl. MediaMarkt and Saturn

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We have improved our Services & Solutions offering

Harmonized service offering at

SmartBars across all stores

Increasing customer demand for screen protection, ready-to-use and repairs

Tendered, refined & rolled out new insurances & warranties proposition in

Germany

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Progress on the centralization of our Category and Supply Chain Management is also steadily building

Roll-outof central pricing system in

Germany

Go-liveof category management pilot store including new systems in Spain

Ramp-upof central logistics platform in

Germany and in the Netherlands

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We have launched a program to reduce complexity and costs, primarily in Germany

Completed staffing of central management team

Streamlining of organizations at CECONOMY and MediaMarktSaturn Holding and Germany

Portfolio solutions for Juke, RMG,

iBood, Greece

1 Incl. 34 €m of expenses booked in Q1 18/19 related to top management changes and incl. non-cash accounting effects.

Reorganization & Efficiency Program

Central Functions		Portfolio

			Target			Status
Timeframe		6 - 18 months
Run-rate savings		110 - 130 €m
Total P&L		204 - 224 €m			c. 190 €m
expenses1

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Why invest in CECONOMY?

#1		#2	#3		#4
CECONOMY IS THE		CECONOMY HAS A		CECONOMY HAS		CECONOMY HAS
LEADER IN		STRONG		THE POTENTIAL TO		THE POTENTIAL TO
MULTI-CHANNEL		FINANCIAL PROFILE		INCREASE		LEAD THE RETAIL
AND SCALE				MARGINS AND		CONSOLIDATION
				FREE CASH FLOW		AND
				GENERATION		TRANSFORMATION
						IN THE FUTURE

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Q1 19/20 & Outlook

CECONOMY's Q1 19/20 in a nutshell

Successful Black Friday period, both in-store and online

Solid growth rates in Online and Services & Solutions

Encouraging earnings improvement driven by Services & Solutions and cost optimization, esp. in Germany

Investor Presentation

Christmas business impacted by pull-forward effects due to increasing importance of Black Friday

Adverse macro conditions and intense competition in Southern Europe

Poland still with weak performance

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In Q1 we built the foundation for a sound financial year 19/20

-0.5%

289 €m

		Sales change yoy	Adj. EBIT1,2
		adjusted for fx-effects and	excl. associates3
		portfolio changes	+20 €m vs. PY
Note: 1 Adjusted EBIT before non-recurring earnings effects in connection with the reorganization and efficiency program and portfolio changes. 2 Incl. IFRS 16. 3 Companies accounted for using the equity method
	Investor Presentation		Public	February 2020	// 18

We continued the success of last year and built again a profitable Black Friday

Centrally prepared and orchestrated	New MediaMarkt web platform handling
campaign concepts for entire group supported	double traffic, improved delivery performance
by professional toolkit	and improved availability of offers

Cross-selling of bundles, focus on services & solutions and higher margin product mix

Strong campaigns with focus on services, early access for MediaMarkt club members and Saturn card holders

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After an already strong prior year, we generated solid double-digit sales growth rates in-store and online

+1,000k +15%

More items sold during 5-day Black	More online shoppers visited our
Friday period vs. PY	websites vs. PY

+2%

More customers visited our stores vs. PY

Note: Figures for 5-dayBlack Fridayperiod including Thursday to Cyber Monday compared to the comparable prior-yearperiod. Figures excluding Greek MediaMarkt business (portfolio adjustment).

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Attractive bundles increased attachment rates during Black Friday, driving smartphone, computer hardware and GSM accessories sales

Countries were well prepared to meet high stationary and online traffic (e.g. partly pre-configuratedReady-To-Use items)

Many campaign products were offered as "Ready-To-Use"bundles which supported particularly smartphone and computer hardware sales

GSM accessories with very good development due to good attachment rate

Ready-To-Use

Ready-To-Usenotebooks Screen

smartphonesprotections

+61% +60% +68%

Note: Figures for 5-dayBlack Fridayperiod including Thursday to Cyber Monday compared to the comparable prior-yearperiod. Figures excluding Greek MediaMarkt business (portfolio adjustment).

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Fx- and portfolio adjusted sales1 nearly on prior-year's level (excl. iBood)

Q1	Total sales
	fx- and portfolio adj.1
	(in €m)
		-0.5%
						-0.8%
	6,879	6,821

Q1 18/19Q1 19/20

Sales by segment

(fx- and portfolio adj.1, yoy change)

		11.3%
-0.2%	-2.9%
			-8.9%
DACH	W. & S. Europe	E. Europe	Others

1 Excluding Greek MediaMarkt business (portfolio adjustment).

Q1 Highlights

• Fx- and portfolio adjusted1 sales excl. iBood nearly on PY's level (-0.2%)
• DACH: Germany with strong Black Friday, but offset by softer subsequent Christmas trading; strong performance in Austria and Hungary
• Western & Southern Europe: Spain mainly impacted by shift in campaign plan; Italy impacted by macro environment and competition; Netherlands with declining sales
• Eastern Europe: Turkey with strong double-digit growth; Poland with slight sales decline
• Others: Solid fx-adj. sales increase in Sweden; sales decline due to disposal of iBood

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Online and Services & Solutions are the key growth drivers

Q1	Online sales1
	(in €m)

			+4.3%
				1,043
	1,000
	14.7%	in % of sales	15.4%
	Q1 18/19		Q1 19/20

Services & Solutions sales1

(in €m)

	+10.0%
339	373

	5.0%	in % of sales	5.5%
	Q1 18/19		Q1 19/20

1 Excluding Greek MediaMarkt business (portfolio adjustment).

Q1 Highlights

• Online1 growth +5.9% excl. iBood
• "Black Friday" campaigns with particularly positive effect on online business
• Online business impacted by high comps (+28%) and shift of campaign planning in Spain
• Strong demand for pick-up option at 47% vs. 44% in the prior-yearperiod
• Double-digitgrowth of SmartBar services: Ready-To-Use,screen protection, in-storerepair
• Positive development of extended warranties and mobile business, while consumer financing business was below PY's level

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Solid operational EBIT improvement mainly driven by Services & Solutions and cost savings

Q1 Gross margin1,2 (in % of sales)

OPEX1,2,3 (in % of sales)

Q1 Highlights

	-0.1%p.	-0.5%p.	 Gross margin with trend improvement, cost
18.4%	18.3%	15.3%	14.8%	savings in PEX and indirect spend
					 DACH: Strong performance in Germany driven
					by Services & Solutions and cost savings
Q1 18/19	Q1 19/20	Q1 18/19	Q1 19/20	 Western & Southern Europe: Spain and Italy
Adj. EBIT1,2 excl. associates (in €m)			impacted by macro environment and
	Q1 18/19	competition; Netherlands also with declining
269	289			Q1 19/20 incl. IFRS 16	result, but with slight trend improvement
247

	197							 Eastern Europe: Poland with ongoing negative
		69	50					trend, Turkey benefiting from market growth
		15	7
						 Others: Severance payment at CECONOMY level
						-12	-15
						and slight decline in Sweden
Group	DACH	W. & S. Europe E. Europe	Others4

1 Excl. non-recurring earnings effects in connection with the reorganization and efficiency program. 2 Adjusted for portfolio changes 3 Sum of SG&A expensesand Other operating expenses. 4 Incl. consolidation.

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Reported EBIT benefited predominantly from positive one-time effect related to Greek transaction

Q1 Adj. EBIT1,2 excl. associates to reported EBIT (in €m)

	319
	-1
30
289	− Operational result
	Greece
	− Regular Fnac
+ Transaction-	Darty D&A
related effect	component
Greece
− Expected trailing
restructuring
expenses

Adj. EBIT Q1 19/20	Restructuring-related earnings effects	Other adj. items	Reported EBIT Q1 19/20
		(portfolio, associates)

Note: EBIT incl. IFRS 16 effect. 1 Adjusted EBIT excl. associates and non-recurring earnings effects in connection with the reorganization and efficiency program announced on 29 April 2019. 2 Adjusted for portfolio changes.

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EPS improvement mainly driven by higher earnings and lower tax rate

€m	Q1 2018/19	Q1 2019/20	Change
EBITDA	291	509	218
EBIT	234	319	84
Net financial result	1	9	8
Earnings before taxes	235	327	92
Income taxes	-88	-105	-17
Tax rate	37.4%	32.0%	-5.3%p.
Profit or loss for the period	147	222	75
Non-controlling interest	40	53	13
Net result	107	170	62
EPS (in €)	0.30	0.47	0.17

Note: reported EBIT/DA; EBIT/DA inCY incl. IFRS 16 effect. 1 Before associates, M.video and restructuring-related effects.

Q1 Highlights

• Reported EBITDA includes c. 138 €m IFRS 16 effect
• Reported EBIT includes c. 2 €m IFRS 16 effect
• Reported earnings in CY include positive effect related to Greek transaction; PY impacted by expenses for restructuring and management changes
• Net financial result benefited from payment of M.video dividend in the amount of 13 €m
• Tax rate improved to 32% mainly due to non- taxable gain related to Greek transaction; underlying tax rate1 at 38%
• EPS increased by 0.17 € yoy

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Adjusted Free Cash Flow below prior-year's level mainly due to restructuring-related cash outflows and higher cash taxes

Q1 2019/20: Free Cash Flow (in €m)

Q1 Highlights

	1,119				1,421			 Change in NWC improved slightly due to
		-29				1,272
		-105	-74			higher increase in trade payables, mainly
				-149
							resulting from higher starting point as of 30
509								September 2018
EBITDA	NWC	Tax	Other	Cash	FCF	Lease	Lease	 Cash tax payments in prior-year period
				investments		repaym.	adj. FCF1	benefited from tax optimization in FY 17/18

2018/19: Free Cash Flow (in €m)

 Other OCF Q1 19/20 mainly impacted by

1,099

61

1,394

1,393

restructuring-related cash outflows and reversal

-4

-52

-1

of non-cash effects related to Greek transaction

291

 Other OCF Q1 18/19 lower trade tax

receivables and the settlement of receivables in

connection with Russia transaction turn into

EBITDA

NWC2

Tax

Other

Cash

FCF

Lease

Lease

tough comparison base this year

investments

repaym.

adj. FCF1

1 Lease adjusted free cash flow subtracts the repayment of lease liabilities for better FCF comparability under IFRS 16 2 Prior-yearadjustments due to changes in presentation and definition.

Investor Presentation

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Outlook for FY 19/20 confirmed

• Adjusted for portfolio changes
• Excluding non-recurring earnings effects in connection with the reorganization and efficiency program announced on 29 April 2019

	FY 19/20	thereof IFRS 16
	incl. IFRS 16		effect
Fx-adjusted sales	Slight increase
EBIT (excl. associates)	445 - 475 €m		5 - 15 €m

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Operations Update

In 2018/19 we prepared for sustainable success

1		Leadership team established and new critical competencies on-boarded

2		Leaner organization and a more competitive cost structure, especially in Germany

3		Faster decision-makingprocesses due to clearer responsibilities

4		Clear focus on consistently transforming our business

5

Progress across all four strategic initiatives and acceleration

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2019/20: Ongoing implementation of the strategic initiatives

CUSTOMER-CENTRICOMNI-CHANNEL BUSINESS MODEL

	DIGITAL		SERVICES &		CATEGORY &
	GROWTH		SOLUTIONS		SUPPLY CHAIN
							MANAGEMENT
	Improve online/omni-channel		Improve attachment rates,		Deploy Category Management
	conversion, growth, margins
		ramp-up existing services and		and central planning globally,
	(e.g. online services) and
		extend services portfolio		and improve last mile delivery
	customer retention

ORGANIZATION & COST STRUCTURE

Reduce overall costs,

implement harmonized

organizational structures and

optimize store portfolio

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Digital Growth: Ongoing improvements of our platforms enabling a better omni-channel customer journey

New webshop

platform

Assisted

selling

Market

place

State of the art platform for faster responsiveness and improved customer experience; go-live in Germany in November '19 and roll-out in other countries to follow

Digitizing our sales colleagues with a new app to improve processes, efficiency & customer satisfaction by combination of store & online assortment

Enabling us to broaden our assortment, increase the number of online SKUs and improve product availability; go-livein Germany in May 2020 expected

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Services & Solutions: Focus on achieving best-in-class attachment rates in all countries

Insurances &		Further ramp-up and roll-out of standardized customer
Warranties		proposition to strengthen customer relationships

SmartBars		Group-wide full utilization of SmartBars potential with
	harmonized offerings of three core services

Subscription		Drive recurring revenue models through own billing
models		platform for e.g. security software

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Centralization of procurement volumes on track; pricing and category management with gradual progress

Ramp-up of central negotiated purchasing in 2019 in Germany

(in % of purchasing volume)

100%
								~70% 
0% Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov

Current focus

• Ramp-upof centrally negotiated procurement volume in Germany, Spain, Italy and the Netherlands on track
• Better control of margins & reliable price promises across all channels through pricing cockpit & simulator in all key countries
• Implementation of state-of-the-artIT-system for Forecasting & Replenishment to improve product availability
• Implementation of automated Digital Floor & Shelf- Planning for creating store layouts based on local customer preferences to rationalize selling space

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Logistics will build on centralization and national distribution centres

Transforming our supply chain into an omni-channel logistics network …

… based on central platforms

• Central platforms in the Netherlands, Italy and Spain as well as pilot in Germany (Erfurt) already established
• Central platform for Germany (Göttingen) starts in autumn 2020
• Omni-channellogistics operations go-livefor Benelux and Iberia in 2020

Central platform established

Central platform pilot

Central platform planned

Cross dock established

Percentage of supply replenished via centralized distribution (non-2MH)

ES

TR

SE

IT

NL

HU

DE

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Summary

FOCUS	EXECUTE
FIXING	TRANSFORMING
THE BASICS	THE BUSINESS
Laying the	Changing into a
foundation for a	customer-centric
sustainable future	business model

We focus on our omni-channel business model

and want to be customers' first choice

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26 MARCH 2020

10 AM - 2 PM

STRATEGY

UPDATE

CECONOMY HQ DÜSSELDORF

Back-up

Sales & number of stores by country

	Sales (€m)
	FY 17/18		FY 18/19
Germany	10,340		10,472
Austria	1,161		1,150
Switzerland	569		578
Hungary	340		364
DACH	12,410		12,565
Belgium	701		697
Greece	186		193
Italy	2,096		2,157
Luxembourg	65		65
Netherlands	1,581		1,495
Portugal	146		151
Spain	2,002		2,050
Western/S. Europe	6,777		6,807
Poland	1,037		970
Turkey	651		596
Eastern Europe	1,689		1,567
Sweden	462		439
Others	542		516
CECONOMY	21,418		21,455

	Number of Stores
30/09/2018	Openings	Closures	30/09/2019
432	2	-3	431
52	-	-	52
27	-	-1	26
24	8	-	32
535	10	-4	541
29	-	-2	27
12	-	-	12
115	2	-	117
2	-	-	2
49	-	-	49
10	-	-	10
85	3	-	88
302	5	-2	305
86	5	-1	90
71	8	-1	78
157	13	-2	168
28	-	-	28
28	-	-	28
1,022	28	-8	1,042

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Store network as of 31 December 2019

	30/09/2019	Openings	Closures	31/12/2019
Germany	431	-	-2	429
Austria	52	-	-	52
Switzerland	26	-	-	26
Hungary	32	-	-	32
DACH	541	-	-2	539
Belgium	27	-	-	27
Greece	12	-	-12	0
Italy	117	-	-	117
Luxembourg	2	-	-	2
Netherlands	49	1	-	50
Portugal	10	-	-	10
Spain	88	-	-	88
Western/S. Europe	305	1	-12	294
Poland	90	-	-	90
Turkey	78	-	-	78
Eastern Europe	168	-	-	168
Sweden	28	-	-	28
Others	28	-	-	28
CECONOMY	1,042	1	-14	1,029

Highlights

• Selective expansion with 1 store opening in the Netherlands
• 2 store closures in Germany
• Average store size reduced by c. -1%to 2,622 sqm since September 2019, mainly due to further store rightsizings and store closures

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February 2020

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Net Working Capital1

€m	30/09/2018	31/12/2018	Change	30/09/2019	31/12/2019	Change
Inventories	2,480	3,229	749	2,548	3,348	801
Trade receivables and other receivables	610	579	-32	455	543	87
Receivables due from suppliers	1,241	1,789	549	1,295	1,851	556
Trade payables and other payables	-5,745	-8,136	-2,391	-5,321	-7,857	-2,536
Net Working Capital	-1,415	-2,539	-1,124	-1,023	-2,115	-1,092

1 Prior year adjustments due to changes in presentation and definition

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February 2020

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New simplified NWC definition as of Q1 2019/20 with all items easily readable from balance sheet positions

Old NWC definition

New NWC definition

Assets

Liabilities

	Inventories
	Receivables due from suppliers
	Trade receivables
	Receivables from credit cards
	REMOVED1
	Advance payments on inventories
	REMOVED2
	Trade payables

Liabilities to customers

Deferred revenues from vouchers and customer loyalty programmes

Provisions for customer loyalty programmes and rights of return

Prepayments received on orders

Without liabilities for rights of return

Inventories

Receivables due from suppliers

Trade receivables and other receivables

Contract assets
NEW

Trade payables and other liabilities

Deferred revenues from
warranty extension	NEW
Contract liabilities
NEW

1 Reclassified as Cash and cash equivalent due to similar character 2 Removed due to non-material amount

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February 2020

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Comparison of new vs old NWC definitions

		€m	30/09/2018	30/09/2019
		Inventories	2,480	2,548
		Trade receivables and similar claims	613	417
		Receivables due from suppliers	1,239	1,295
		Receivables from credit cards	71	51
Old		Advance payments on inventories	0	1
	Trade payables and similar payables	-5,277	-4,914
		Liabilities to customers	-45	-13
		Deferred revenues from vouchers and customer loyalty programmes	-137	-133
		Provisions for customer loyalty programmes and rights of return	-23	-22
		Prepayments received on orders	-46	-45
		Net Working Capital	-1,125	-815
		€m	30/09/2018	30/09/2019
New		Inventories	2,480	2,548
	Trade receivables and other receivables	610	455
	Receivables due from suppliers	1,241	1,295
		Trade payables and other payables	-5,745	-5,321
		Net Working Capital	-1,415	-1,023

• NWC becomes easily readable from balance sheet positions
• New definition ensures completeness of NWC positions
• Due to revised disclosure under new definition, NWC is more negative than under old definition
• Redefinition has no economic impact

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February 2020

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IFRS 16 effects on EBITDA and EBIT in Q1 19/20

	Adjusted EBITDA1,2	Adjusted EBITDA1,2	IFRS 16 effect
		including IFRS 16
€m	Q1 18/19	Q1 19/20	Q1 19/20
DACH	228	356	80
Western/Southern Europe	87	111	44
Eastern Europe	20	23	12
Others3	-11	-11	2
Total	325	479	138
	Adjusted EBIT1,2	Adjusted EBIT1,2	IFRS 16 effect
		including IFRS 16
€m	Q1 18/19	Q1 19/20	Q1 19/20
DACH	197	247	1
Western/Southern Europe	69	50	0
Eastern Europe	15	7	1
Others3	-12	-15	-1
Total	269	289	2

1 Adjusted EBIT/DA excl. associates and non-recurring earnings effects in connection with the reorganization and efficiency program announced on 29 April 2019. 2 Adjusted for portfolio changes 3 Including consolidation.

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February 2020

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IFRS 16 applied as of 1 October 2019 - estimated P&L impact in FY 19/20

	ESTIMATED
	EFFECT 1
Leasing expenses		Decrease by 525-565 €m as leasing expenses are recognized as D&A and interest cost
EBITDA		Increase by 525-565	€m equalling the amount of leasing expenses
D&A		Increase by 515-555	€m due to depreciation of capitalized operating lease asset
EBIT		Increase by approx. 5-15 €m as lease expense is replaced by D&A and interest
Interest expense		Increase by a low double-digit €m amount due to interest cost component
Earnings before taxes		Reduce by a low single-digit €m amount due to higher interest during first years

1 Estimated effect on financials of FY 19/20 as first year of IFRS 16 application; financial effects based on preliminary and unaudited impact analysis as of 11 November 2019.

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February 2020

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IFRS 16 applied as of 1 October 2019 - estimated balance sheet and cash flow impact in FY 19/20

	ESTIMATED
	EFFECT 1
Assets		Increase by around 2.3	€bn due to recognition of lease contracts as rights of use assets
Liabilities		Increase by around 2.4	€bn due to recognition of lease contracts as lease liabilities

	ESTIMATED
	EFFECT 1
Operating CF		Increase by 525-565 €m as leasing expenses shift to financing CF
Financing CF		Decrease by 525-565 €m as leasing expenses are recognized as interest and amortization

1 Estimated effect on financials of FY 19/20 as first year of IFRS 16 application; financial effects based on preliminary and unaudited impact analysis as of 11 November 2019.

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February 2020

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Fnac Darty consolidation

FNAC H1 2020

FNAC H2 2020

FNAC H1 2021

FNAC

H2 2019

			CEC Q2 19/20	CEC Q3 19/20	CEC Q4 19/20			CEC Q1 20/21				CEC Q2 20/21	CEC Q3 20/21
31.12.	31.03.	30.06.		30.09.	31.12.	31.03.	30.06.
2019	2020	2020		2020	2020	2021	2021

• Our c.24% stake in Fnac Darty is accounted for as "Investment accounted for using the equity method" on the balance sheet
• The share of Fnac Darty's net income will be reported in our EBITDA and EBIT
• Due to Fnac Darty's semi-annualreporting of net income, we will report our earnings share semi-annuallyin Q2 and Q4
• Our share of dividends, should there be any dividends, will be recognised earnings-neutral in our cash flow statement

Investor Presentation

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February 2020

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Store director model as an effective form of incentivisation through 10% share ownership

Store

10 % share				90 % share

Store director

10 % profit share paid as dividends	Profit Share
"Chief Customer Officer"	Employment
No "veto rights"	Rights
Decisions on special assortment
Additional price discounts if needed in light of local competition
Creation and conduct of special local marketing campaigns	Operational
Limited individual purchasing	Rights

Country organisation

100 % profit booked in EBITDA

Can force resignation of non-performing directors

Strategy

Store layout

Web shop management

Purchasing

Core assortment

Country-wide marketing campaigns

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February 2020

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Financial calendar and events

Financial calendar

Annual General Meeting

Capital Markets Day

Q2/H1 2019/20 results

Q3/9M 2019/20 results

Q4/FY 2019/20 trading statement

FY 2019/20 results

Upcoming events

Roadshow London

Roadshow Paris

12 February 2020

26 March 2020

14 May 2020

13 August 2020

23 October 2020

15 December 2020

10 February 2020

18 February 2020

Investor Presentation

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February 2020

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