Groupe LDLC : PRESENTATION FULL YEAR RESULTS 2019-2020

19 JUNE 2020 WEBCAST

FULL-YEAR RESULTS

2019/2020

CONTENTS

L D LC G R O U P O V E R V I E W

FY 2019/2020 RESULTS

ROADMAP AND OBJECTIVES

INVESTOR NOTEBOOK

KEY FIGURESAT 31 MARCH 2020

3

€493.4m

Revenues

FY 2019/2020

42,000 m2

dedicated logistics platform

1,000

employees

51 LDLC stores in France

5 countries covered:

France / Belgium / Luxembourg /

Switzerland / Spain

15

retail brands

incl. 7 commercial websites

SPECIALIST MULTI-BRAND ONLINE AND OFFLINE RETAILER

FRENCH LEADERON THE ONLINE HIGH-TECH MARKET	4

BtoCBtoB

High-tech

Other businesses

including Maginea.com until April 2019

BtoC ENTREPRENEURIAL SPIRIT AND ENHANCED SERVICE

5

3,500,000

FOLLOWERS

ON

SOCIAL NETWORKS

CUSTOMER

SERVICE

2020

Customer Service

award

6 years in a row

LOGISTICS

42,000 m2

dedicated logistics

platform

Up to 16,000

parcels/day

INNOVATION

1 R&D department

4 patents

registered since 2016

SOURCING AND

LISTING

1,500 partner brands

>40,000 listed products

LDLC own PC brand

CROSS-CHANNEL

SALES OF PRODUCTS &

SERVICES

Online & stores

77 stores

(31/03) incl. 51 LDLC

stores in France

35 million online visitors/year

PLEASURE

PASSION

PROXIMITY

BOLDNESS

SOLIDARITY

* Technical Product Retail category - BVA Group survey - Viséo CI - May to July 2019.

BtoB LDLC.PRO & BIMP NETWORK SYNERGY

6

• Designer of global solutions for public and private sector companies
• 2 facilities in Limonest (Rhône - 69) and since early 2018 in Gennevilliers (Hauts-de-Seine - 92)
• Dedicated 60-strong BtoB taskforce

• Apple distributors for business and retail customers (60%) - No. 1 in France
• Strong brand recognition in the education market
• 16 branches including 11 Apple Premium Reseller stores
• 200 employees

TARGET REVENUES OF AROUND €300M

STRONG SYNERGYBETWEEN ONLINE AND OFFLINE BUSINESSES

LDLC STORES

LDLC STORES BRANCHES MATERIEL.NET CONCEPT STORES

BIMP STORES, APPLE PREMIUM RESELLER BIMP STORES, APPLE AGREED RESELLER

L'ARMOIRE DE BÉBÉ STORE

7

RAMP-UP OF STORE

OPENINGS:

Already 52 LDLC stores

in France (at 15 June 2020)

IN FRANCE:

in FY 2019/2020:

+9 LDLC stores

since 01/04/2020:

+1 LDLC store

IN SPAIN

(withdrawals during the year):

closure of 2 LDLC stores

ESTABLISH A CHAIN OF

AROUND 100 STORES

CUSTOMER SERVICE EXCELLENCE

2020: LDLC wins Customer Service award for the 6th year running

(BVA Group survey - Viséo CI - May-July 2019)

• 100% of emails answered within 1 business day
• 15 seconds: average waiting time before speaking to an adviser
• 100% of answers on social media

8

2 Qualiweb Trophies in 2020

(Cocedal survey among 250 companies in Q4 2019)

• Qualiweb Trophy 2020
  No. 1 for customer relations via email
• Qualiweb E-commerce Trophy No. 1 for customer relations in the Specialised Retail category

DAILY KEY FIGURES

(Group)

over 1,300 calls over 1,000 emails over 120 chats

over 150 social network interactions

BtoCOTHER BUSINESSES

Launch of website

May 2015

8,600 listed products

• 250 brands for children aged 0-3years

2019/2020 revenues

€3.1m (up 12%)

9

ONGOING

EXPANSION

OF STORE CHAIN

• 1st store opened in Limonest (near Lyon) in April 2018
• • 500 m² of sales space
  • 3,500 listed products
• 2nd store to be opened in the Paris region (Orgeval) on 22 June
• • 600 m² of sales space
  • 3,500 listed products

10

INTEGRATED LOGISTICS

SOLUTIONS

THROUGH THREE

COMPLEMENTARY PLATFORMS

Three logistics platforms

• Saint-Quentin-Fallavier(Isère - 38): 21,000 m2 warehouse capacity
• Nantes (Loire-Atlantique - 44): 18,000 m2 warehouse capacity
• Gennevilliers (Hauts-de-Seine - 92): 3,000 m2 warehouse capacity

Over 200 employees in procurement and logistics

Customer service, assembly, repair

Up to 16,000 parcels handled per day

Proprietary ERP systems

AN UNRIVALLED LOGISTICS SOLUTION TO

SUPPORT THE GROUP'S ONLINE BRANDS

LDLC GROUP OVERVIEW

FY 2019/2020 RESULTS

	ROADMAP AND OBJECTIVES
11	INVESTOR NOTEBOOK

HIGHLIGHTSOF FY 2019/2020

12

01	Strategic repositioningof BtoC brands,
in particular Materiel.net: impact on Materiel.net first-half revenues but structural increase in
	gross margin
02	Confirmation of renewed growthin BtoC businesses over the year:
	BtoC revenues up 1.2%

in H2BtoC revenues up 2.7% excluding Materiel.net (€18.6m impact in H1) in 2020/2021

03

04

05

Continued growthof store network:

+9 stores in France (up 21%) Closure of 2 stores in Spain

Group deleveragingvia real estate disposals

Sale of Nantes warehouse and head office premises

Net debt lowered to €8.6m vs. €60.8m the previous year

Launch of new products,including products developed by the

R&D unit: two keyboards (solar-powered & AZERTY+), marketing launch of lightsabers

(www.solaari.com), 1st virtual reality game from LDLC VR Studio, development of the customisable keyboard (www.nemeio.com)

A TERRITORY FOR	EACH BRAND
13

STRATEGIC POSITIONING OF THE LDLC GROUP'S HIGH-TECH BRANDS

after repositioning completed in H1 2019/2020

Ultra-specialist, high-end	The broadest range	Targeted at a younger audience

	With optimised back-office functions
IT SYSTEMS		SOURCING AND		LOGISTICS
	LISTING

POSITIVE STRUCTURAL IMPACT ON GROSS MARGIN RATE

2019/2020 REVENUES OF €493.4M

14

BREAKDOWN OF REVENUES BY BUSINESS LINE

Breakdown of revenues by business line

IN €M	2019/2020	2018/2019	Ch. %
BtoC	323.5	335.9	-3.7%
- LDLC stores	66.7	59.0	+13.1%

		BtoB
		Other businesses*
52.1%	BtoC (excl. LDLC stores)	Total revenues
13.5%	LDLC stores
32.9%	BtoB
1.5%	Other

162.3	162.2	+0.1%
7.6	9.3	-18.3%
493.4	507.5	-2.8%

• Closure of Maginéa in April 2018: Other businesses excl.
  Maginéa up 5.6% (2018/2019 revenues: €7.1m)

MARKET INDICATORS2019/2020

15

Average basket value (in € excl. tax)

2019/2020

2018/2019

2017/2018

329,000	2015/2016	2016/2017

new customers

(total new BtoC & BtoB accounts)

Average
basket value
319	321	344	389	426
+9.5%

2 PP STRUCTURAL INCREASEIN GROSS MARGIN

16

Growth in gross margin rate (%)

STRUCTURAL INCREASE OF

			H1	H2
H2	H1	H2	2019/2020	2019/2020	+0.5pp
		19%
2017/2018	2018/2019	2018/2019
		-0.5pp
+0.5pp
17%
-0.5pp
17.2	16.3	17.6	19.1	19.5

+2 PP IN GROSS MARGIN

AT CURRENT SCOPE

Related to the strategic repositioning of the Group's brand catalogue

IN €M	2019/2020	2018/2019
Revenues	493.4	507.5
Gross margin	95.1	86.1
Margin rate	19.3%	17.0%

INCOME STATEMENT (1/2)

SHARP RISE IN EBITDATO €15.7M	17

IN €M

Revenues

Gross margin

Gross margin rate

Other purchases and external costs

Staff costs

Miscellaneous taxes

Other expenses

EBITDA (1)

Depr./amort. and provision charges

Underlying EBIT

2019/2020	% of	H1	H2	2018/2019*	% of rev.
rev.	2019/2020	2019/2020
493.4	-	222.0	271.4	507.5	-
95.1	19.3%	42.3	52.8	86.1	17.0%
19.3%		19.1%	19.5%	17.0%
(27.4)	(5.6%)	(12.9)	(14.5)	(29.8)	(5.9%)
(48.1)	(9.7%)	(22.9)	(25.2)	(50.3)	(9.9%)
(2.8)	(0.6%)	(1.2)	(1.6)	(3.4)	(0.7%)
(1.0)	(0.2%)	(0.6)	(0.4)	(0.7)	(0.1%)
15.7	3.2%	4.7	11.0	1.8	0.4%
(9.1)	(1.8%)	(3.9)	(5.2)	(7.4)	(1.5%)
6.6	1.3%	0.8	5.8	(5.5)	(1.1%)

• Sharp improvement in gross margin and EBITDA
• Positive impact of measures taken in H2 2018/2019 on operating expenses
• D&A: Capitalisation of prior year projects

• H1 2018/2019 financial statements restated pursuant to French GAAP to allow comparison between the two periods
  (1) EBITDA: Earnings before interest, taxes, depreciation and amortisation

INCOME STATEMENT (2/2)

18

IN €M

French GAAP

EBIT

Net financial income/(expense)

Earnings of consolidated companies before non- recurring items

Non-recurring income

Non-recurring expenses

Income tax

Net income/(loss) of consolidated companies

	%			%		Change
2019/2020		2018/2019*		2019/2020 vs.
of rev.		of rev.
				2018/2019
6.6	1.3%		(5.5)	(1.1%)		+12.2
(1.0)			(2.1)			+1.1
5.7	1.2%		(7.6)	(1.5%)		+13.3
45.6			0.4			+45.2
(35.1)			(0.4)			-34.6
(7.9)			2.8			-10.7
8.3	1.7%		(4.8)	(0.9%)		+13.1

• Disposals of real estate & Spain closure

• H1 2018/2019 financial statements restated pursuant to French GAAP to allow comparison between the two periods
  (1) EBITDA: Earnings before interest, taxes, depreciation and amortisation

CASH FLOWSTATEMENT

Operating cash flow increased x4over the year to €12.4m

IN €000	2019/2020	2018/2019*
Gross operating cash flow (before tax)	11,365	462
Tax paid	(6,419)	260
Change in working capital	7,476	2,564
Cash flow from operating activities	12,421	3,286
Cash flow from investing activities	20,172	(11,491)
of which Capex	4,015	2,376
Cash flow from financing activities	(31,172)	(5,009)
Change in cash	1,421	(13,213)
Cash at start of period	17,928	31,141
Cash at end of period	19,349	17,928

19

• Efforts to improve working capital
• Positive impact of real estate disposals

* 2018/2019 financial statements restated pursuant to French GAAP

GROUP DEBT REDUCEDBY €52M
20

01 Sale of Nantes warehouse for €11.3m (signed 12 June 2019)

• +€6.1m in cash net of misc. expenses
• €4.4m debt reduction

02

03

Sale of LDLC head office premises for €32.3m

(signed 31 July 2019)

• +€11.4m in cash net of misc. expenses
• €19.1m debt reduction

Improvement in earnings

NET DEBT LOWERED TO €8.6M (at 31/03/20)

VS. €60.3M (at 31/03/19) AFTER REAL ESTATE DISPOSALS

BALANCE SHEET STRUCTURE

ASSETS - IN €M	31/03/2020	31/03/2019*

Non-current assets	69.0	101.8
Inventories and work-
67.2	63.5
in-progress
Trade receivables	24.5	26.5
Other receivables	14.7	19.8
Cash and cash	19.9	18.5
equivalents
Current assets	126.3	128.3
Total assets	195.3	230.1

21

EQUITY AND LIABILITIES - IN	31/03/2020	31/03/2019*
€M
Shareholders' equity	62.5	54.3
Provisions for risks and	5.1	4.2
contingencies
Borrowings	28.4	78.8
Trade payables	61.3	64.4
Other payables and	38.1	28.5
provisions
Total liabilities	127.8	171.7
Total equity and	195.3	230.1
liabilities

* Balance sheet at 31 March 2019 restated pursuant to French GAAP

KEY TAKEAWAYSFROM FY 2019/2020

22

GROWTH IN	STRUCTURAL
	IMPROVEMENT
BTOC	IN GROSS MARGIN
BUSINESSES	TO 19.3%
IN H2 2019/2020	(VS. 17.0% IN 2018/2019)

SHARP RISE IN EBITDA

NET DEBT

TO €15.7M	REDUCED 7-FOLD
(VS. €1.8M IN 2018/2019)	TO €8.6M
RETURN TOWARDS RECORD HIGHS
IN H2	AT 31 MARCH 2020

LDLC GROUP OVERVIEW

FY 2019/2020 RESULTS

ROADMAP AND OBJECTIVES

INVESTOR NOTEBOOK

COVID-19UPDATE

24

BtoC online

Store chain

BtoB

Other aspects

	Lockdown period		Since mid-May
•	High demand	•	Sustained high demand
• Logistics operations slightly disrupted
•	Delivery times return to normal
	but without break
• Closure of most stores (4 stayed open)	• All stores re-opened
•	Rapid return to normal with catch-up
•	Support for franchisees
	phenomenon
• Sharp decline during lockdown period	• Rapid return to normal with catch-up
	phenomenon
•	High demand for L'Armoire de Bébé	•	Sustained high demand

• €18m state-guaranteed loan (PGE)

OUR

ROADMAP 01

FOR

FY 02

2020/2021

03

04

Strengthen positioning in high-tech products

Improvement in EBIT margin

Ongoing expansion of store chain

Innovation and diversification of our offering

22/06/2020

ACQUISITION OF TOP ACHATCLOSED IN APRIL 2020

26

ACQUISITION OF

BUSINESS

ASSETS

Online sale, maintenance and	2019 revenues
customer services for IT and
> €90 million
high-tech products
55 employees	Acquisition of business assets
and positioning facilitating
in Lyon
integration within LDLC Group

BUSINESS COMBINATION ALREADY FULLY OPERATIONAL

HIGHLY ACCRETIVE TRANSACTION DUE TO SYNERGIES

PRODUCT INNOVATIONTO FUEL

MEDIUM AND LONG-TERM GROWTH

AZERTY+ keyboard

compliant with

NF Z71-300

Marketplace

to enhance the offering

LDLC SWL10 keyboard

solar-powered

SOLAARI

27

NEMEIO

the 1st universal keyboard

Studio VR

Virtual reality experiences

connected lightsaber

2020/2021 GUIDANCE

FY 2020/2021 revenues

>€600m

28

• Integration of Top Achat
• Growth > 20%

2020/2021 EBITDA

€33m

NET DEBT

<0

• Improvement in operating profitability
• Increase in operating cash flow

LDLC GROUP OVERVIEW FY 2019/2020 RESULTS ROADMAP AND OBJECTIVES

INVESTOR NOTEBOOK

SHARECAPITAL

30

TOTAL NUMBER OF SHARES AT 10 JUNE 2020: 6,322,106

De la Clergerie family

Transfer of Groupe LDLC share to Euronext Growth since

2 September 2019

Laurent de la Clergerie: 19.40%

Caroline de la Clergerie: 9.94%

Olivier de la Clergerie: 9.74%

Suzanne de la Clergerie: 1.13%

* No action in concert: this segment comprises members of the De la Clergerie family

40.21% De la Clergerie family*

1.95% Treasury shares

4.87% Keren Finance 52.97% Public float

Based on disclosures made over the past

12 months

SHARE PRICEMOVEMENTS

STOCK MARKET AND LISTING INFORMATION

• Euronext Growth
• FR00000755442 ALLDL
• Market capitalisation: €113m
• 1 year high: €19.25
• 1 year low: €5.74

12-MONTH STOCK MARKET PERFORMANCE

19 (last price at June 17)

17

15

13

11

9

7

5
juin-19	août-19	oct.-19	déc.-19	févr.-20	avr.-20	juin-20

31

2020/2021 PUBLICATIONS CALENDAR

•	Q1 revenues:	23 July 2020
•	Q2 revenues:	29 October 2020
•	H1 results:	3 December 2020
•	Q3 revenues:	28 January 2021
•	Q4 revenues:	29 April 2021
•	FY results:	17 June 2021

Publication after market close

Analyst tracking the share:

Gilbert Dupont/Ning Godement

APPENDIX

QUARTERLY REVENUES

33

				BtoC
		98,5		BtoB
	77,6		82,1	Autres
65,3				activités*
		49,8		* Excl. Maginéa
36,7	38,8		36,9
IN €M
1,7	1,9	2,2		1,8
Q1	Q2	Q3	Q4
2019/2020	2019/2020	2019/2020	2019/2020
103.7	118.3	150.6	120.7
-4.9%	-5.7%	+3.3%	-5.0%

READ MORE AT WWW.GROUPE-LDLC.COM