Fnac Darty Sa Ord

Good morning to you all. Thank you very much for being here for our financial statements. I'm with Jean-Brieuc Le Tignier, our CFO, and we're very happy to see you today, even if it's from a distance, especially as our results are excellent. One year ago, almost to the day, I presented our everyday strategic plan. Today, the remarkable performance achieved by the group in 2021 reflects the first successes of this plan. We are very proud. And above all, we are proud of the collective work accomplished thanks to the commitment of our 25,000 employees, the primary architects of this success. It's also an opportunity for me to thank our customers for their loyalty and support. We were very touched by their recognition and trust. This confirms our ambition to become the key ally for consumers in their efforts to consume responsibly and sustainably in their daily lives. I would like to start my presentation with the successes of this year, and Jean Brieux will explain in more detail the main elements of our financial performance. We started this year, as you know, with the pandemic and COVID. We have the major achievements of this year. The performance of the group took place in a very difficult period of time. We had to adapt, and thanks to the agility and responsiveness of our teams, it was possible to take up the challenge we had to adapt to periods of closure and reopening of our outlets while ensuring the health and safety of our employees and customers. We have overcome supply chain disruptions thanks to the quality of long-term and trusting relationships with our suppliers, and we've been able to shift a large part of our business Online, very quickly, thanks to the extensive digital skills and the performance of our integrated logistic solutions, we have been able to deliver our customers in the shortest possible time, even in periods of peak demand, thanks to the click and collect. And it was possible thanks to our dense network of stores, thanks to strong partnerships with delivery companies. And we strengthened the quality of work of our teams with the signature at the very beginning of the year of the first group agreement on the quality of life at work. And most importantly, not only did we successfully weather the COVID crisis, but we were able to look to the future by launching our everyday strategic plan a year ago, strengthening the role we play in terms of sustainability advice and service for all our customers. This has proved to be a winning bet and we are already seeing the first successes and they are very encouraging. 2021 is an exceptional year for our group. Our results are excellent and reflect the relevance and success of our strategy and the outstanding day-to-day work of our 25,000 employees in all our countries. Our revenue exceeds the record level of 8 billion euros, up 7.4% year on year. Thus, during the two years of crisis, the group sales grew by more than 8.2% on a pro forma basis. Our online sales represented 26% of our total sales in line with our projections and well above the level prior to the health crisis while maintaining the click and collect rate close to 50%. Our current operating results amounts to 271 million, a very strong increase compared to 2020 and already exceeds the pro forma level for 2019.

So how can we understand the evolution of activities during the period we've just been through? Firstly, Well, through the behavior of our markets. Of course, there are favorable trends directly linked to the crisis we've just gone through. People have spent more time at home and needed to equip themselves quickly to telework, to improve the quality of life in their homes, or simply to keep themselves occupied during periods of confinement. But there are also underlying trends to which the range of our products and the quality of our services respond perfectly. the need for culture with a growing appetite for comic strips, both for young people and older people, the search for authentic, durable, sustainable and repairable products, the search for a sensory experience and a collector's items, such as a return to the vinyl, a demand for more premium products, which has had an undeniable value and volume effect on certain categories. The breadth of our offer, its positioning, the quality of our sales, though, who now know how to anticipate trends and decipher our customers' expectations, give us unrivaled assets to accompany the underlying trends of our market. I will illustrate this with a few examples. For the past two years, we have outperformed the trends in our markets, and this is no accident. It is the result of our strategic and tactical choices in our purchasing policies and the depth and range of our offers. We have a long-term relationship of trust with our suppliers. This has enabled us to maintain excellent availability of our products throughout the year, despite disruptions in supply chains. To sell, you can't just promise, you have to deliver. We have exclusive offers on innovative and technological products such as Samsung microLED TV and many others throughout the year. We offer attractive cultural events in our points of sale, with meetings with more than 600 artists this year between September and December, despite the health context, but also thanks to launch of the Éclaireur digital platform that was launched in October. We are diversifying our offer with extension of the Darty cuisine offer, kitchen offer, which now has 185 points of sale, or with the development of new areas dedicated to urban mobility, games at home, a very important market for the group. Now, as you know, one of the strategic orientations our everyday plan is the development of a multi-channel approach, which combines the best in physical and digital worlds. In 2021, we again gained 5 million new active customers on the web, and digital sales represented 26% of total sales. This is 7 percentage points better than in 2019. It confirms our objective of reaching at least 30% of sales through digital channels by 2025. We owe this success to our 20 years of experience. online sales expertise in France and Europe and to an ambitious program of innovation and transformation that we've launched. For example, we recently launched our live streams service, which puts our customers in touch with our expert salespeople, and we have already conducted over 150,000 live streams. The results are extraordinary, with a conversion rate between two and three times higher and a high level of customer engagement.

I'd suggest to take a look at images of this service. Flexarty brings together the best of the two worlds, digital and proximity. In this jungle of hyper-choice and the web, what is more precious than advice and direct exchange? Thanks to Visio, our store sellers invite you to a simple and easy service.

Géraldine, Magasin de la Défense, bonjour. Oui, bonjour. Je dois changer mon imprimante de toute urgence et je suis un peu perdu.

It is essential that the expertise and patience of our sellers continue to accompany our customers in their new uses and that customers can choose the products that correspond to their uses. Thank you and see you very soon on our site and in stores.

A big thank you, really, because I really didn't know what to choose.

An excellent example of this kind of service. In the same spirit, and in order to present new products, we are continuing with live streams, and we have exceeded 120-21 compared to just 40 the previous year. We are reinventing the human relationship within the digital dimension. Today, we are announcing a major partnership with Google on cloud and data. We will improve, thus, the relevance of our search tools and use artificial intelligence or machine learning to provide more services to our customers. We will soon be the first retailer in France to implement a new solution for our search engine using Google search technology, which will enable us to set new performance standards for the online and mobile shopping journeys. I'm very pleased with this project, which represents a major innovation made possible thanks to the close collaboration with the Google teams, whom I thank for their trust. I'm very excited about the impact this project will have for our customers. We know that the quality of the search engine is strategic, because more than one out of two visitors arriving on the homepage of our site uses the search engine to buy products. So to succeed in our omnichannel model, we must not only succeed in terms of digital technologies, but we must also succeed in the physical world in our shops, which are the key assets in our strategy. By the end of 2021, we will have a dense network of 957 stores, and we're carrying out two... The extension of our network and its optimization. As far as expansion of our network is concerned, we have targeted opening strategy and opportunistic. We are not looking for quantity but quality and relevance to our customers' expectations. We are opening new outlets when it makes sense, most often as franchises, like the first nature découverte shop in Portugal or the first FNAC shop in Senegal. We have doubled the number of WeFix sales outlets by two since its acquisition in 2018. The brand now has nearly 140 outlets and has become the key player in smartphone repair in France. We are expanding in Switzerland a partnership with the Manor Group. The rollout is proceeding as planned with the opening of shopping shops in French-speaking Switzerland. In 2022, we will open shop-in-shops in the German-speaking part of Switzerland, which will significantly extend the group's coverage in Switzerland. Thanks to this dense geographical network, Click & Collect now represents 46% of digital sales, in line with a target of 50%. With regard to optimization of our existing part, We have carried out an in-depth review of our locations and facilities and are taking the necessary actions to, on the one hand, transfer some of the less busy city centre shops to retail parks that attract more customers, such as in Colmar or in Bourges. to reduce surface areas such as in the case of Murcia, Spain, and to reallocate space from declining products such as CDs and DVDs to the benefit of new offers with sales dynamics such as urban mobility or books. These actions will continue over the next two to three years, depending in particular on the expiry of certain commercial leases. The group still aims to have a 100% profitable integrated shop network by 2025. The second strategic focus of our everyday plan is to promote informed, responsible and sustainable consumption. This is not an option, it's a commitment, because we are convinced that it is a crucial issue for the future of our societies, of our companies. informing our customers' choices means providing them with better information. We have extended the Sustainable Choice label to FNAC. This selection highlights the 150 most sustainable products in FNAC and Dati shops and on the group's websites. In addition, we have made progress in terms of sustainability with a score that has evolved to 111 points in 2021, up six points over one year, and in particular thanks to the work on the availability of spare parts provided by the manufacturers whom we support and encourage. This score combines both product reliability and repairability of products, and our objective is to reach 135 by 2035. Finally, we have accelerated our initiative to promote product repairability. 2.1 million products were repaired by the group in 2021, thanks in particular to the deployment of the DatiMax repair offer, an extension of the number of WeFix service centers, the leading brand dedicated to smartphone repair. We are therefore confident that we will reach 2.5 million products repaired per year by 2025.

It is also our duty to be exemplary in the way we conduct our operations. In 2021, we reduced our CO2 emissions by 14% compared to 2019. We confirm our goal of reducing these levels by 50% by 2030. We've just signed a second agreement with the company Valico, which will enable us to cover 30% of the group's annual consumption of green electricity in France. We are also the first retailer to launch an informed delivery project that allows our customers to estimate the environmental impact of different delivery methods when shopping online and to make their choices accordingly. All these initiatives and concrete commitments have been praised once again in 2021 by the non-financial rating agencies. We achieved the A- rating from the CDP above the average of the specialist retail sector and were included in the leadership category for the first time. Moody's ESG Solutions, formerly Vigéo Iris, gave us a score of 54 out of 100, up 6 points, confirming our position in the European top 10. Finally, in 2021, Nature and Découverte, which was one of the first French companies to obtain the B Corp label, has seen this label renewed for the third consecutive time. To conclude this first part of the presentation, I would like to tell you about DartyMax, a total revolution in the world of service. DartyMax is a benchmark in terms of quality and added value of the service provided to our customers, as it allows for free repair of products purchased or not at Darty in the event of a breakdown. With the launch of two complementary offers, we now have three DartyMax formulas that cover the repair of large household appliances, but also small ones and the entire multimedia universe, TV, home cinema, sound or photography.

DartyMax today is...

There will already be almost 500,000 subscribers by the end of 2021, compared with only 200,000 by the end of 2020. Over 4 million products already covered by Dartimax. A focus on repairability and durability of products. With Dartimax, we are creating a relationship of trust and transparency with our customers. The frequency of purchase is 50% higher than the rest of the customers with an average basket that is 35% higher. We are going to continue to increase the number of exclusive services and the customer experience for DartyMax subscribers. And to illustrate this, I invite you to watch a preview of the next DartyMax advertising campaign.

Lorsqu'un de vos appareils tombe en panne, il y a DartyMax. L'abonnement à partir de 9,99€ par mois. Diagnostique, pièces et main d'oeuvre compris, pour faire réparer vos appareils. Récents ou plutôt jeunes, qu'ils viennent de chez Darty ou même d'ailleurs. Et maintenant, avec la consultation visio incluse, nos techniciens vous donnent aussi leur conseil de pro pour mieux les entretenir. Le seul abonnement, entretien et réparation de vos appareils électroménagers et multimédia, c'est DartyMax. Par Darty, premier réparateur de France.

As you can see, we are going to enrich the Dartimax offer in particular by developing maintenance advice, enabling our customers to avoid breakdowns, or by deploying a video assistance service which will complement the repair services. Other initiatives will be launched in the near future. Our objective, as you know, is to reach 2 million Dartimax customers by the end of 2025, and we are well on our way to achieving this. I will now hand over to Jean Prieux, our Chief Financial Officer, which will detail our financial results of the year, and we'll come back later for the conclusion. Thank you, Enrique. Good morning to you all. I would like to return to the FNAC Darcy's operational performance in 2021 before going into detail by reasoning with the financial performance of the group. Let's first look at the top line of the income statement against the backdrop of an unprecedented crisis which continued into 2021 with the closure of some stores during the first half year. The group posted record sales of 8 billion euros. The group... reported exceptional growth of plus 7% like for like compared to 2020 and plus 8.2% compared to the pro forma for 2019, i.e. with nature and decovert in full year. This solid performance is the result of the growth in the in-store sales driven by both a higher conversion rate and an increased average basket, while footfall remains penalized, especially in city centers and shopping centers. Taking into account a high comparison-based effect, the group's online sales consolidated during the year with a weight that remains high at 26%, well above the pre-crisis level. The click-and-collect rate reached 46% this year, close to the target level of 50%, a strong increase, plus 7 points over one year. It should be noted that in the fourth quarter, in the context of normal store openings, this rate even exceeded 50%, proving that consumers are strongly in favor of this channel. The group's gross margin rate reached 29.50% in 2021, up plus 30 basis points compared to 2020. This increase is mainly due to a favorable product mix effect of around plus 40 basis points linked to in particular to the increase in in-store footfall, which benefited sales of editorial products highly sensitive to impulse buying. A rise in services of around the plus 30 basis points, driven in particular by the continued rollout of the DATIMAX. These two factors more than offset the impact on the gross margin rate of around minus 15 basis points due to the decline in nature and découverte business, penalized by the drop in footfall due to the brand's strong presence in city centers and shopping malls, and the technical impact of the development of the franchise for around minus 25 basis points. As a reminder, franchising allows the group to have a significant territorial coverage by being present in smaller catchment areas. This allows almost 90% of the French people to have a FNACO that they store, within 15 minutes of their home and ensures the relevance of click and collect. This franchise development is certainly dilutive in terms of the group's gross margin, but it's accretive to the EBIT margin. Operating costs reach $2.1 billion. 3 million euros up on 2020, in line with the strong growth in activity. I'd like to highlight the good performance of our operating costs, which, as a percentage of our revenue, were down by 20 basis points compared to last year, thanks to good control and execution of performance plans. Those performance plans have enabled us to offset the rise in inflating related costs, thanks to actions taken by all the group's departments. Current operating income, 271 million euros in 2021, perfectly in line with the guidance communicated last October. I would like to remind you that in spite of the lockdown and several periods of short closures that marked 2021, we recorded a higher current operating income above the one of 2019 pro forma, excluding the ticketing business still heavily impacted by the health restrictions. As a result, the group's operating margin stands at 3.4%, up 50 basis points compared to 2020. Let's look at the operational performance of each of our regions. Let's start with France-Switzerland in the fourth quarter. It says in the region we're down 3.3%, like for like, in a very high comparison base. I'd like to remind you that sales growth in the region in the fourth quarter of 2020 was particularly strong in the context of exit from lockdown, plus 11.7%. It should be noted that sales in Switzerland benefited in the last quarter from the first effect. The opening of the nine FNAC shopping shops within Manor shops added to the first four test shops in shops opened at the end of 2020. The group, therefore, is on track to achieve its objective of 100 million euros in additional sales in Switzerland over full year. once all 27 shopping shops have been opened. In 2021, sales in the France-Switzerland region grew by 7.2% like for like. As a reminder, the region was penalized by the lockdown and the closure of stores, especially in shopping centers. Footfall in nature and découverte shops continued to be strongly impacted this year with the closure of all stores during the first half year, penalizing sales in 2021. By distribution channel, this solid growth was driven by a strong performance from FNAC and Darty, which more than offset the normalizing performance on the web in a high comparison base. In terms of product categories, almost all of them are growing, with particularly the strong momentum of television driven by the Euro Cup and the Tokyo Olympics. Stephanie, with the successful launch of iPod, Phone 13 and IT linked to the continuation of working from home despite tensions in the supply chain. Household appliances continue to post solid growth in both large and small appliances, driven by continued market share gains and consumer awareness of home well-being, resulting in the purchase of higher-end products. Editorial products are also growing strongly, driven by books. The latter benefited from the fact that more stores remained open than last year, the growing appetite of all generations for comics, particularly mangas, and the widespread introduction of the culture passed for 18 years old in all fax stores in France. This category also benefited from good momentum in audio and gaming, where sales were postponed to 2021, following the stock shortage of the new PlayStation and Xbox consoles at the end of last year. Diversification categories continued to grow strongly in 2021, mainly driven by the home and design and urban mobility segments, with a strong push for scooters. Finally, services grew, driven by franchising, with the opening of a new 47 franchisees during the year. Services benefited also from strong momentum in insurance and warranty and the accelerated rollout of Dautimax offers with almost 500,000 subscribers at the end of December. Conversely, the marketplace was impacted by the change in the European regulations this summer and tensions in the market of technical products, especially telephony. Finally, ticketing activity increased mainly in the last quarter, but this gradual recovery was nevertheless impacted by the arrival of the Omicron variant in Europe in December. Thus, the solid turnover momentum in 2021, coupled with a growing gross margin, enabled the France-Switzerland region to record a current operating profit of €245 million, up by €51 million compared to last year. Let's turn to the Iberian Peninsula. In the fourth quarter, the region recorded a 1.1 decline in the like-for-like sales. Spain penalized by a particularly high competitive environment more than offset the good sales momentum in Portugal in the last quarter. In 2021, the region posted sales growth of plus 6.5%, like for like, driven by a solid performance from stores benefiting from a gradual easing of health restrictions. All product categories drove growth in the region, in particular, telephony, television, sound, and books. IT showed more normative growth due to a very high base effect. Finally, services showed a solid growth over the period, driven by the strong momentum of insurance and guarantees. The solid commercial performance of the teams in Spain and Portugal, as well as good control of operating costs, enabled the region to post a €2 million increase in current operating income compared to €11 million. Lastly, the Belgium-Luxembourg region recorded like-for-like sales growth of 3.2%. in the last quarter and 5% for the full year. This growth was driven by a very good performance from the 72 Vandenboor shops and the 13 Fnac shops in the region. By product category, this growth was mainly driven by the good momentum of sales of large household appliances at Vandenboor with an average selling price increase linked to the upmarket nature of the products purchased, particularly built-in appliances. Telephony books and in-store services as well as multimedia-packed subscriptions also performed well. The quality of the team's operational execution in the context of sustained competitive pressure enabled the region to post the current operating profit of €15 million up to €2 million on 2020.

So let's turn to the bottom line of the income statement. Other non-current income and expenses amounted 10 million in 2021, down on 2020, and include restructuring costs. Operating profits thus reached 260 million, up 61 million compared to 2020. Financial expenses count to 42 million for the year 2021, compared to 51 million in 2020. This decrease is mainly due to the upward re-evaluation of fair value of group shares in the Daphne Purple Venture Capital. funding, which Fnac d'Arte invested in 2016. In addition, the new financing strategy put in place in March 2021 has enabled the optimization of interest expenses with an extension of the average maturity of the group's debt. The tax expense amounted to 74 million, compared with 60 million in 2020. year on year, directly linked to the increase in the group's results. However, it includes an expected as expected reduction in tax charge linked to the CVAE of nearly 10 million compared with 2020, the reduction in corporate tax. As a result, the effective tax rate will be 34% in 2021, down 6 points compared to 2020. Net income from continuing operations was therefore 145 million compared to 88 million last year. Now, let's look at free cash flow at the end of December. Free cash flow from operations, including IFRS 16, was down 22 million compared with 2020, but still a high level of 170 million. This performance reflects on the one hand the increase in EBITDA in line with the evolution of current operating result that I explained earlier on. It also reflects the good management of working capital requirements in the context of necessary inventory replenishment at the beginning of the year after May I remind you, 2020, which ended with particularly low level of stocks. In addition, this level of free cash flow reflects the relevant and effective management of our merchandise purchases in order to mitigate tensions in the supply chain, mainly for so-called scarce products. This agile stock management has enabled us to have a good level of product availability throughout the year and ensure the success of major commercial events at the end of the year. Now, operating investments. In 2021, they returned to a normal level and amounted to 117 million, in line with what the group had announced in the everyday strategic plan within that context. This level includes, in particular, the investment required to deploy the FNAC partnership with MANA in Switzerland and the opening of nine shopping shops in 2021. However, FNAC Dati anticipates a slight increase in its investments from 2022 onwards, taking into account the rollout of 40 new FNAC shopping shops within Manor in the first half of 2022, and part of the additional investments of around 40 million euros in all over the duration of the plan dedicated to modernizing and upgrading the group's logistics equipment. In total, over the year 2022, the Group's investments will be in order of 140 to 150 million, around 130 million excluding logistics projects. Now, just a few words to end on a financial status. The Group's financial position is sound, with a shareholder's equity of over 1.5 million euros. and net cash excluding IFRS 16 of 247 million at the end of December 21, up 133 million year-on-year. At the same time, the group announced last March the success of its new financing strategy, which consists of repaying in full the 500 million state-guaranteed loan, which we have never used. of extending the revolving credit facility 500 million with a maximum maturity in 2020. This new credit facility includes CSR component in line with objectives of the everyday strategic plan, which will enable the group to improve its financing conditions if the objectives set are met. And finally, redeemed the 200 million senior term loan facility maturing in April 2023 to replace it with 200 million convertible bond maturing in 2027. This new financial structure allows FNAC Dati to optimize its average cost of debt and has no major repayment dates before 2024. As a result, the end of December 2021, FNAC has more than 1 billion in cash and cash equivalents in addition to the 500 million RCF. which has not yet been drawn down. This extremely healthy balance sheet gives the company confidence to face the uncertainties of the ongoing crisis. The group's financial strength was underlined this year by the three financial rating agencies, Standard & Poor's, Moody's and Scope, which confirmed their respective long-term credit ratings and all raised their outlook to stable. Finally, in line with what was announced in the Everyday Strategic Plan, the Group has reactivated its policy of returning to shareholders in 2021 with the payment of a first dividend of 1 euro per share paid on 7 July. I will hand the floor over to Enrique to conclude this presentation with several elements on the outlook and the shareholder return policy for 2021. Thank you, Jean-Pierre. We're going to... conclude briefly. Now, we are approaching 2022 with confidence, strengthened by positioning as a leading omni-channel player. It is difficult to make a projection for the current year because, as you know, background makes it difficult to make comparisons, so I don't want to rush into giving too precise a forecast on projections. However, I'm very confident that we can develop even in an uncertain environment. We will continue to ensure the best possible availability and quality of the products and services we offer with a focus on premium products and by continuing to offer exclusive products. Considering the very high involvement of our employees in 2021, and concerned about their purchasing power, the Group has decided to pay an exceptional purchasing power bonus of €400 for employees working in France whose gross annual salary is less than €35,000. The Group will also implement a similar measure adapted to the specific context of each country, unless measures have already been taken locally.

This measure will affect more

than approximately 19,000 employees. For 2022, we will accelerate the implementation of our everyday plan, which is built around service, advice, and sustainability. Now, we're going to continue the cost control, going to continue improving customer experience, expand our retail network, outlets and strengthen our position in the circular economy, providing a differentiating informed choice for our clients, and finally, continued development of the Dautimax subscription service model. We thus confirm our free cash flow from operating targets. approximately 500 million euros in total over the period 2021-2023 and at least 240-250 million per year by 2025. 240 million euros. Now, when we presented the everyday plan a year ago, I announced our policy of returning dividends to shareholders with a payment of dividend of 1 euro per share for 2020 financial year. In view of the results of 2021, And in compliance with our payout criteria and the group's level of debt, we have decided with the Board to propose to the General Meeting of the 18th of May next the dividend of 2 euros per share to be paid. This dividend represents a payout ratio of almost 37% and will be payable in full in cash. In conclusion, we have succeeded during this extraordinary time thanks to the strength of our brands, the commitment of our teams, and the impetus of our everyday project. We are entering a new and exciting phase in the life of our group. Thank you for your attention, and we are now available to answer your questions.

We already have a first question. Do you think that the objective of 2 million subscribers starting Max is still achievable by 2025? Thank you, Clément. Yes, indeed. We already reached this level of 500,000. It's already quite promising. In 2021, we... If we had disturbances and disruptions in our stores, in closures, in spite of this, we could increase the number of subscribers. So, yes, we confirmed this goal by 2025 of 2 million subscribers to Datimax. Another question by Clément as well. What is the level of average price rises passed on to the consumer in 2022? This is quite topical in all sectors. We are finalizing the sales negotiations with the manufacturers for France. So there will be, of course, a rise in prices because the material cost and transportation cost has an impact and it will be more visible than in 2021. We are working with our partners to make sure that the offer is completely available for all types of households and purchasing prices. So there would be a rise in prices, but we'll make sure that the offer will be broad enough in order to satisfy all consumers. The third question, what is the level of wage valuation or rise in 2022 in order to offset this crisis? right in cost. We have just announced this bonus. It will cost about 6 to 7 million euros on a yearly basis. We have not started the conversory negotiations with the industrial partners, so of course we pay attention to this rise in inflation. We hope that it will get more normal in the months to come. The group really wanted to support purchasing power of the employees, but we had to reduce the cost to be able to finance that. So I hope that the cost reduction momentum will be continued. And this year, as announced by Pompidou, We will probably have more therapies to offset the inflation, but we do our utmost to do it. A question on ticketing. Which scenario for the ticketing in 2022 versus 2019? The ticketing is recovering and recovered in 2021, especially in the summer period. We were close to the normal level and fortunately the variant Omicron came in and at the end of the year it reduced or slowed down this recovery. Let me say that we are rather optimistic for 2022, and the pandemic starts getting smaller and smaller, and the markets are getting prepared. We won't have the complete level of 2019, but 2022 will be marked by a recovery of the ticketing business. Jean-Brieuc, you can answer this question, which... which share of your owned stores is not profitable in 2021. So in 2019, we had 5% of the fleet of stores not profitable. And during the everyday plan, we started or launched a momentum to make sure that the whole fleet be profitable in 2025. In 2021, if we look at the fleet, we had a lot of closures and the refigs on natural decouples were impacted. And 2021 is not a comparison base for us, which is quite relevant. The objective is to have 100% of the whole number of stores profitable. By 2025, we have action plans for all those stores, and therefore they will become profitable. As Enrique said, we started this year, transfer, reduction in surface areas, optimization of square meters within stores. As we said, it takes time because... In most cases, we have to negotiate with the lessors. The situation is excellent, but it will take time, and it is linked to the renewal of leases and rent. So, Jean-François, 2021 is not a relevant year for the profitability of the fleet, and we'll deliver 100% of the profitability by 2025. We also have the arrival of a new shareholder, VESAO, controlled by Konczewski. Did you have any discussions with him, Mr. Kretinsky? It was a surprise. Was it a surprise to see him coming in the equity? So we want to make the group attractive, of course, and we met last year Mr. Kretinsky several times, and Mr. Kretinsky decided to hold shares in our equity. We are We like to see that this person recognizes that our group is an interesting asset and it's an asset in the retail industry and we're satisfied to have a newcomer in our equity.

We have a question that I'll answer very briefly. Can we have an idea of the group's performance for January? You know very well. We're not going to comment ongoing activity business activity We'll leave that keep that for April what we can say the stores are open at the moment There are no health restrictions in countries.

So the activity is normalized We have

Take into consideration the past performances, but we're practically optimal in terms of performance today. Maybe, Jean-Bru, how much is the reduction in results impact on EBIT, the results of Nature et Décovert, 100 million in terms of the group? So in terms of performance in 2021, it was less than what they did historically. But we're talking about amounts that are relatively not so significant. It's not major in terms of structure of EBITDA. Now, what would be the change in the margin, those plus 70 base points, and what would be the impact of the mix of products and services? Now, this is distributed between the mixed products and service, 40 for products, 30 for service.

Thank you. Thank you.

Now, we have a question from Nicolas Jean who's asking about operating costs. And the question is, how much do we believe this will be impacted by inflation? And what is the capacity to compensate for this? Well, evolution of costs. It's a little bit early in the day to make an appraisal because the first costs are personnel costs. And that will all depend – it's not finished in terms of negotiations. And also real estate costs. It's a little bit early to say. We know that costs will – grow a little bit faster than past years, and it will be a little bit more difficult for us with the different plans that we're deploying, and especially compared to the results we have. We have a cost base which is already optimized. We know that we compensate each year roughly for 2% of inflation. If there's more than that, it's going to be more complicated. that it depends how we'll be able to carry over the increase in costs in the pricing of our products and services. We'll see how this evolves over the year, but I'm particularly concerned about this. And it's not written that the levels of inflation today will continue for the whole of the year. There is a question, the number of leases that are coming to term in 2022, 2023, 2024. It's very linear in terms of the terms of the leases. We have 600 integrated stores. We have a number of leases, which means that we have a very linear progression in terms of the number of leases that come to term overall for the whole of the group.

And we have another question.

What is your plan for the opening of stores in 2022, barring the Manor openings? It all depends on the context, of course. We saw that in 2022. We opened fewer stores because we were in a crisis situation, but probably around 50 this year. The majority of these openings would be franchises. So there's significant drive for the opening of franchise stores, and also the cuisine stores, the kitchen stores and branches, and the WeFix that's practically doubled, and we continue to accelerate this penetration of the WeFix brand.

We have a question. You talked about competition in Spain.

Now, as you know that the exit of the crisis in different countries has been different, and it depends on the To a great extent on the government policies in North Europe and France, we've had very strong support with huge resources made available.

So it meant that the recovery.

has been seen in consumption. It's been very sustained. And in other countries where the policies were the same policies were deployed with fewer resources, fewer money. And the recovery has been more gradual. So it's made things more complex. And we've had more competition and certain aggressive competition in markets. It's not particularly due to one player or another competition. and it's due to an overall context. probably due to the lack of consumption during lockdown. So we hope that in 2022 we'll have a good recovery. Tourism will come back and the health conditions will be better. And we hope we'll come back to levels that are more normal and that the competition or pressure from the competition should normalize as well. Now, we have a question. Boulanger is strengthening its reconditioning with re-commerce. Do you think that WeFix is sufficiently performant to be able to benefit from this trend for repair refurbishment or reconditioning? We're very pleased with WeFix. We will see that in the course of the year, it's becoming a major player in repair. quality repair and quick repair, and that has contributed greatly to more than 2 million repairs in 2022, so we consider that we have the right assets. And don't forget, Darty really has an image for repair. We repair more than 2 million products per year, and this is Incomparable compared to other competition with Wefit and the Dati after-sales services, really a champion in repair.

A question for you, Jean-Brieuc. the possible development of the working capital requirement for 2022. This WCR was a bit disturbed in those last two years in 2020. We had huge sales at the end of the year. The stocks were at a very low level, so we had a good WCR. In 2021, normalization, then replenishment of stock. In spite of this, you saw that the cash flow was of very good quality, €170 million. In 2022, we should have, but it will depend on the market. on the sales terms and conditions and the market will have at the end of the year but we should rather have a normalization of the working capital requirement for 2022 so therefore less impact downwards or upwards than what we had in 2021 a question there was another question we didn't answer so could you please post it again A question on the CO2 footprint, and we are talking of the informed delivery. That's the information we give to our customers to choose the type of delivery based on the CO2 footprint. The question is, can it have an impact, and will it change the habits of customers? As I said in our presentation, we already have over 150 products with a sustainable choice label, and the consumption of those products is much higher than the other products. So the choice criterion is sustainability. That's quite obvious for the household appliances. So first question, what about the sustainability of the products? 50% of the customers will choose on the sustainability base. It has a very positive impact, therefore, on the sales thanks to that. So it's a beginning of a trend, and the consumers will buy in this, of course, based on the design, the quality of the brand, the quality of service, and the price. But sustainability will be one of the criteria for choosing a piece of equipment.

We have another question.

Oh, no, we answered the question on the sea economy in Spain. I thought I didn't answer this question. We have a question on the World Cup of 2022. It will be in November and December. Could it boost the sales of the fourth quarter, Clément? Well, it's the first time we'll have a World Cup. outside of May and July. So, of course, the consumption will be more dynamic, and there might be major market movements in terms of supply and demand. TV sets, of course, especially in 2021, we had significant sales of TV sets. So I think it's going to be a challenge. We'll probably have a first half year more sluggish, but quite frankly, at the end of the year, always driven by sports, yes, we expect a boost of selling TV sets. Jean Brieux, what is the price-volume mix in the LFL growth in 2021, and what is your vision for 2022, especially on volumes? In 2021, the growth was driven by price and volume. 2020, well, stores were closed a lot, so the fact that we reopened stores, the volume was present, but the price as well. The price is not really inflation.

It's

And the upmarket, our customers in 2021, well, we had the prices, higher prices, but because customers wanted to have higher-end products, so Dartimax customers have... The average basket is 25% higher. So customers are choosing higher products, more expensive products, but more sustainable products. And it was a growth factor for 2021. Now for 2022... I don't know whether you want to add something, but we do not have the price-volume mix of 2022. We'll discover that during the year. Of course, we start the beginning of the year with an inflation-based trend. The price will probably change. I hope that the supply chain will get some more stable. Tensions will be not as difficult, so we'll see the impact on the product mix. I hope that during this year we'll have other stores and the technological and editorial products will play a role again. Services were impacted as well, ticketing as well. So we hope it depends on the complexity of the moment, the comparison. base is quite changed. It's not possible to refer to 2019. 2021, in February, we had already a lot of stores in Paris and in large cities, stores closing, so the comparison basis is difficult. But what you can What you can say is, yes, there will be a base effect on inflation. It will have an impact on products. And I hope that the situation will get more normal in order to strike a balance. I think that we answered all questions. We would like to thank you for your attention. As you understood, we are extremely proud and satisfied. It's a difficult day for mankind today. You know what I'm alluding to. But we are very proud of the results accomplished in 2021, full of trust for our ability to continue those projects. We are a transforming group, and you have to look at the signs. of transformation and this everyday plan gives you the sign to follow up this transformation. The group will be more digital, more sustainable, more responsible with a higher degree of service and 2021 was the first steps in this transformation process but it's only a beginning. Thank you very much and see you soon.