Fnac Darty : 2021 Extra-financial performance declaration

CONTENTS

1

PRESENTATION OF THE GROUP 1

1.1 / Business Model NFPD 2

1.2 / History 20

1.3 / Solid results for 2021 23

1.4 / Fnac Darty markets and offering 30

1.5 / Group strategy and objectives 40

1.6 / Innovation, brands, research and development 43

1.7 / Store network and proprietary real estate 45

1.8 / Regulatory environment and changes 48

2

CORPORATE SOCIAL

RESPONSIBILITY NFPD 51

Governance and CSR strategy 52

2.1 / Develop our most valuable asset: people 63

• 2.2 / Promote sustainable consumption

  and an educated choice 77

• 2.3 / Contribute to the economic,

social and cultural development of regions 94

2.4 / Reduce impacts on the climate 101

2.5 / Acting ethically throughout our value chain 126

2.6 / Summary table of non-financial indicators 147

2.7 / Methodology note 153

2.8 / Independent Third-Party Report by one of the Statutory Auditors on the Consolidated

Non-financial Performance Declaration 158

3

RISK FACTORS

AND MANAGEMENT NFPD 163

3.1 / Risks related to changes in the economic model 166

3.2 / Security risks 173

3.3 / Regulatory risks 175

3.4 / Financial risks 177

3.5 / Risk management associated

with the Covid-19 health crisis 180

3.6 / Insurance 181

3.7 / Risk management 183

The items related to the Non-financial Performance Declaration (DPEF) are identified in the section headings using the pictogram NFPD

11

Presentation of the Group

1.1 / Business Model 2

1.1.1 / Company Profile 2

• 1.1.2 / A business model that creates sustainable

  value for our stakeholders 13

• 1.1.3 / Strategic challenges as sources of opportunity

aligned with sustainable development goals 16

1.2 / History 20

1.2.1 / History of Fnac 20

1.2.2 / History of Darty 21

1.2.3 / History of Fnac Darty 22

1.3 / Solid results for 2021 23

1.4 / Fnac Darty markets and offering 30

1.4.1 / Description of markets 30

1.4.2 / Market trends 30

1.4.3 / A diversified product and services offering 32

1.4.4 / Geographical breakdown 38

1.5 / Group strategy and objectives

• 1.5.1 / Embodying new standards for successful digital and human omnichannel retail in the future

• 1.5.2 / Helping consumers adopt sustainable practices

• 1.5.3 / Rolling out the benchmark subscription-based home assistance service

• 1.5.4 / Financial outlook and mid-term ambitions

1.6 / Innovation, brands, research and development

• 1.6.1 / Innovation, a Group priority

• 1.6.2 / Brands, research and development

1.7 / Store network and proprietary real estate

• 1.7.1 / Store network

• 1.7.2 / Proprietary real estate

1.8 / Regulatory environment and changes

• 1.8.1 / Regulatory environment

• 1.8.2 / Responsible lobbying

40

40 41 41 42

43 43 44

45 45 47

48 48 49

1

1

PRESENTATION OF THE GROUP

Business Model

1.1 /

Business Model

1.1.1 / COMPANY PROFILE

1.1.1.1 /

A European leader in omnichannel retail

Operating in 13 countries, principally France, Switzerland, Belgium, Spain, Portugal and Luxembourg, Fnac Darty is a European leader in the retail of entertainment and leisure products, consumer electronics and domestic appliances. The acquisition in August 2019 of Nature & Découvertes, a leading omnichannel retailer of natural and wellbeing products, enabled the Group to penetrate the Wellbeing and Outdoor Activities sectors and, in doing so, accelerate its diversification.

With more than 25,000 employees, Fnac Darty generated revenue of more than €8 billion in 2021. The relevance of its omnichannel model is based on a dense territorial network combined with sustained momentum on digital platforms. As of the end of 2021, the Group has a multi-format network of 957 stores, including 798 in France (1). It is France's third largest e-commerce retailer in terms of audience in France with its three commercial websites: fnac.com, darty.com, and natureetdecouvertes.com. Its position as leader is based, in particular, on its high volume of traffic: 181 million visits to stores across the Group and a cumulative average of nearly 27 million unique online visitors per month in France (2). It should be noted that in-store traffic in 2021 continued to be impacted by the closure of some stores in the first half of the year and ongoing capacity restrictions as part of efforts to combat the Covid crisis. The attraction of digital platforms skyrocketed, with an uptick in online consumption, which accounts for a high a proportion of total Group revenue, at 26%. By combining the strengths of Fnac, Darty and Nature & Découvertes, the Group's omnichannel sales accounted for 46% of online orders in 2021, against a backdrop of very strong growth in e-commerce volumes

• (1) Including 16 Fnac Darty/N&D stores in Switzerland and 31 stores abroad.

• (2) Fevad, cumulative average for Fnac and Darty for 2021.

compared with the pre-crisis level. Momentum thus remained very strong, with the proportion of click&collect sales picking up sharply in the last quarter, up +8 points to 53%.

The Group operates primarily in Europe via three regions: France and Switzerland, Belgium and Luxembourg, and the Iberian Peninsula. The France and Switzerland region covers the Group's French and Swiss activities and represented more than 83% of sales in 2021. The Belgium-Luxembourg region covers the activities of Fnac and Vanden Borre in Belgium and Luxembourg and represented 8% of sales in 2021. Lastly, the Iberian Peninsula covers Fnac activities in Spain and Portugal, and represented almost 9% of revenue in 2021. The Group is also developing its franchise business internationally and now has 14 stores in Africa and the Middle East, and 17 stores in French overseas departments and territories.

In these geographic regions, the Group reproduces the strategy implemented in France, adjusted to the local context. This is mainly through a strong network of directly owned stores, as well as franchise development. Fnac Darty has solid e-commerce platforms in all its countries, with five main international websites and partnerships with specialist sites. Meanwhile, the Group is rolling out a single platform for all sellers, so they can connect to the countries that are most relevant to them within the Marketplaces ecosystem.

By bringing together its in-store and digital offerings, the Group can provide services such as "click&mag", "click&collect" and the express or by-appointment delivery offering. These services guarantee a seamless, hybrid purchasing experience, combining in-store and online shopping.

2

PRESENTATION OF THE GROUP

Business Model

The Group's omnichannel experience is outlined below.

Kitchen stores, as franchisesFnac.be and Marketplace Logistics platformsVandenborre.be

385 stores:

• • 131 Fnac

• • 242 Darty

• • 1 Fnac Darty

• • 11 Nature & DécouvertesFnac.com and Marketplace Logistics platforms Darty.com and Marketplace After-sales service Fnac.ch Click&collect Natureetdecouvertes.com Click&mag and Marketplace

5 Fnac stores

Fnac.es and Marketplace Logistics platforms Fnac.pt and Marketplace After-sales service

Store network as of December 31, 2021.

1.1.1.2 /

A galaxy of brands orbiting Fnac and Darty

A DENSE NETWORK

OF STORES

Since their creation more than 60 years ago, both Fnac and Darty have strived to embed their values and promote their deeply held convictions. In 2016, Fnac Darty was created from the merger of these well-known brands, both of which boast strong reputations and excellent consumer loyalty. These two brands have complementary positions and missions.

Three strong values make up the essence of the Fnac brand: independence, passion and the spirit of discovery. These values are reflected in its salespeople, in its recognized expertise and in its product selections, as well as in the unique place that Fnac occupies in French culture (Fnac Live Paris, the Salon Fnac Livres fair, the BD Fnac France Inter comic prize in association with French national radio, the Prix Goncourt des Lycéens literary prize for senior high school students, and more recently L'Éclaireur Fnac). Fnac is the brand of discovery, of diversity, of open-mindedness. It is a strong brand that occupies a special place in the French retail landscape, and which has made curiosity its mission.

A GROWING FRANCHISE NETWORK

STRONG

DIGITAL PLATFORMS

As for Darty, its identity is anchored in three key values: confidence, service and accessibility. Darty, a heritage brand, is the brand for everyone. It is there for its customers at every stage of their lives, from the big moments to the smallest. It is a pioneer in terms of service, especially after-sales services.

Since the merger between Fnac and Darty, the Group has expanded to include new brands to form a major specialized retail group. The Group has strengthened its presence in the ticketing sector with the 2019 consolidation of Billetreduc.com and increased its offering in the express repair of electronic devices, first in France in 2018 with the acquisition of WeFix and then in Portugal in 2019 with the consolidation of PC Clinic. The acquisition of Nature & Découvertes in 2019 represents the most significant external growth transaction since the merger of Fnac and Darty. A strong label whose core values complement the Group's brands, Nature & Découvertes advocates for ethical and more environmentally friendly consumption. This aligns with Fnac Darty's commitment to educated choice and sustainable consumption.

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