Fnac Darty Sa Ord

Good evening, good evening, good evening to all of you. I am very happy with Jean Brieux to be here today to present and comment on our results for 2024. I will first present the remarkable facts of the exercise with the main success of our strategic roadmap and then Jean Brieux will present us our financial results. Enfin, je reviendrai prendre la parole pour la conclusion et nous serons évidemment disponibles tous les deux pour répondre à vos questions. Slide 4, vous savez qu'ils ont en ligne. Pour FLEC d'Arty, 2024 a été une année de croissance, de transformation et d'expansion à l'international. Grâce à la mobilisation sans faille des 25 000 collaborateurs du groupe, nous avons délivré des résultats très solides. Une croissance des chiffres d'affaires, des gains des parts de marché lors des grands temps forts commerciaux de la fin de l'année, une marge brute en progression portée par les services, un résultat opérationnel courant en hausse, une génération de cash flow au-delà des objectifs fixés dans le cadre du plan stratégique Every Day. In line with the objectives of these plans, our group has resolutely accelerated its mutation to propose a new way of doing business, omnichannel, durable and turned towards service. We want to embody the best standards of retail, both digitized and human. The quality of the advice, the performance of the logistics, the relevance of the commercial offer are more than ever the nerds of the war to meet the expectations of our customers at each stage of their journey. 2024 has demonstrated the relevance of this approach. which has allowed us to outperform the market, despite a macroeconomic context that is still not dynamic. I come to slide 5. In 2024, we will collect the fruits of the success of our model. The return of e-commerce growth is confirmed and omnichannel sales now represent 52% of online sales. The click on Collect is the best proof of the success of our omnichannel strategy. The engaged transformation towards services with high added value offers us recurring revenues and increased profitability. Subscription services such as Dartimax, Fnac Vdigital, Vanderbilt Life and many others show a growth of two figures. They are accompanied by a total of 11 million customers, of which we cultivate commitment and fidelity. As you know, our group has been a pioneer in terms of sustainability and promotion of the circular economy. Throughout the year, we have continued the initiatives aimed at promoting sustainable behavior in our customers as well as in our partners and suppliers. Finally, we realized the acquisition of Uniero in Italy. This operation will strengthen our European leadership and will constitute a lever of growth for the years to come. I will come back a little later to present more details. Slide 6. Our winning strategy allowed us to wait or to exceed all our objectives in 2024. I commented on the figures. For what you know, we are consolidated only on one month in 2024. The current operational results amount to 182 million euros, in line with our objective of making at least 180 million euros. Le cash flow libre opérationnel au IFRS 16 attend 195 millions d'euros. Il est supérieur à notre objectif de 580. Et enfin, comme vous le savez, nous avions un objectif de 500 millions d'euros cumulé en 2021-2024. Nous avons, arrivons avec ces résultats de 2024, un résultat de 515 au-delà de cet objectif de 500. On slide 7, so 2024 would have been a year of growth and underperformance in our market thanks to the application of the know-how of all our teams. You can see them here on the graphs. The turnover, gross margin, ROC and operational free cash flow are on a rise in a globally decreased market. We also have to point out that the activity of the fourth quarter of 2024 has been very well carried out, especially since the months of November, with very good performance during the end of the year holidays. Et ainsi, dans le respect de notre politique des rétoiles actionnaires présentés dans Everyday, nous soumettrons lors de notre assemblée générale du mois de mai les paiements d'un dividende de 1 euro en hausse de 500 centimes par rapport à 2024. Slide 8. And so, if we come to the reason and where this growth has happened, this slide represents emblematic product categories on our two signs that have particularly well performed in 2024. First, on technical products, they benefit from a new cycle of innovation. These are the cases, for example, of PCs that have been boosted to IA, on which we have very good market share. Globally, we have benefited in 2024 from the premises of a cycle of re-equipment. For the editorial products, the book's performance remained very solid, driven by the attraction of new trends, new reading trends. The books continued, as you know, to be an undeniable engine for the group, reinforced by our emblematic initiatives that nourish the preference of readers for the FNAC brand. We have benefited from a very strong dynamic on some emblematic products, such as the airfryers, which were undoubtedly the essential sources of the year 2024, and under which we have conquered a very solid position. The return of consumers to the equipment of the house represents a promising future for the entire category, and we hope that it will also be the case in 2025 for some families of large household appliances. And finally, diversification shows a solid performance thanks to the growth of two categories, such as the GJUÉ and the PAPETRI, where groups continue to invest to become a reference actor. These are only a few examples that show our ability to assess growth opportunities and to establish our position as a reference on a very wide spectrum of categories of products and services. Just on slide number 9, let's come to the service, more than ever at the heart of the transformation of our commercial model, which is, I think, unique in the world. The success of Dartimax is the most emblematic illustration. We registered in 2024 Innos and our part of Dartimax and Vandenberg Life subscribers, which now has 1.4 million subscribers. With an adjusted price in the year to follow the effect of inflation, we have succeeded in pursuing a rhythm and support of conquests. Beyond the significant contribution in the service market, Dartimax is a lever of loyalty. Dartimax customers have a purchase recurrence 1.5 times higher than that of a normal Dartimax customer and a average basket of 1.6 times more important. The other services within the group have also progressed significantly. Obviously, I could not quote all of them today, but the recovery of credits, the protection in the digital world, all the other different subscriptions to cultural and digital content, the media, they have also progressed very strongly. You know, we spend our service offer and by its richness and its unique complementarity, it is brilliantly carried out on a daily basis by the whole of our team. We had announced it during the launch of Everyday. We have launched a new page in the history of the group, and that is to transition to a more complete model, combining products and services, with results that are already very visible in 2024. If we go to slide 10, prioritizing durability and product repair is one of the pillars of our Everyday plan. And concretely, In 2024, we have increased the number of repaired products to 2.6 million. We have also made our durability score progress to 133, already close to the goal of the global plan. This already has an impact on the quality and durability of the products we distribute. We have made the industry and consumers progress towards a more durable consumption. It was, you know, one of my important goals of the year, to make the growth of the activity and profitability compatible with our durability commitments, and it was achieved. Finally, the second life activity confirms its dynamic level with a turnover that shows a growth of 25% in 2024. As the first collectors in France, we are ideally positioned to benefit from the quality of products eligible for the second life. We come under slide number 11. You follow them. Our commitments are greeted by all the notations agencies that accompany us. Moody's, TI France, Sustainalytics or MSCI. Our evaluations have been constantly progressing over the past year. We also want to get an A on the GDP climate questionnaire, which places us above the average of European enterprises, and among the most performing enterprises worldwide in terms of climate change integration. Nous rendrons public dans la prochaine semaine notre premier rapport CCRD. Et les groupes, ils prennent déjà, dès l'avance, sous sa trajectoire, et déjà reconnus comme l'exemple qu'on vient de voir. I'll give you the number 12. Among our strategic initiatives, I would like to focus on the markets in the middle of the world of retail media. Last year, we had already mentioned with Jean-Brieuc some results. For 2024, our management, which is Retail Link, which is the 100% integrated advertising management, which develops offers to allow brands to get closer to their communities and to meet the objectives of the engagement and sales authorities. We once again took advantage of our omnichannel positioning, which allows us to adapt to the different modes of consumption of our customers and to be able to offer them a physical, digital or hybrid experience. The activity represented nearly 5 million euros in sales in 2024, which is 1.3% of our total sales. There or there in the markets, they only weigh 0.2% on average in retail sectors in Europe. You can see that we are well ahead in these areas. The advertising formats on the web reach every month more than 22 million users. And to illustrate this, I suggest you watch a short video. It's one of the small examples, like others, of what we are able to offer to our brands to illustrate well this novelty. It's the time of our stores. Obviously, during the Olympic Games, it helped us to bring back the Fnac brand. If we go to slide number 13, we will quickly talk about the innovations and technologies for the Group. We are obviously investing to offer adapted solutions to our new customers. Our e-commerce tools are evolving, for example, with improved logistics services. You saw it, e-commerce has progressed again in 2024. Also in the year 2024, we launched Weaven, the dedicated e-commerce logistics and marketplace branch of the Group, in partnership with SEVA Logistics. As a digital service, we also use our ambition to help our customers make sustainable choices. We have launched digital passports on household appliances that will allow us to trace with reliability the cycle of the products of the device from its manufacture to its recycling. The first tests were carried out on the 4,000 devices that we have sold and recovered from the village of Saint-Leth for Paris 2024. Among the recent innovations that you see here in the middle of the screen, Darty is now offering immediate reprises to join the purchase paths on the web. The amounts are directly usable for online purchases, which allows to improve the reliability at the time of purchase of new products. And finally, internally, our collaborators have appropriated new IA tools that boost our performance and open the way to new solutions for our customers and suppliers. for the marketplace, for example, content moderation, product files, or even on pre-sale activity services. We have again joined a structured partnership with Google Cloud, which we have been deepening since 2021. This collaboration nourishes and increases our capacity for innovation by taking advantage of the richness of our data. I would like to give a quick word to our customers. The measurement of the satisfaction of our customers is essential to continue our dynamics of improvement. Our MPS is progressing from 2.7 points compared to 2023. It is 11 if we look at 2019. It reaches 64.2, but even more interesting, we have 75% of promoters among our customers. To engage for our clients also means to engage for our employees, one goes with the other, who are at the heart of our business relationship. We are committed to always better train and accompany them. Overall, almost all of our employees benefited from a training in 2024. They succeeded and we are very proud. And this is particularly true for all the tools that concern artificial intelligence. Ciao. Dans un marché en consolidation en Europe, cette opération fait rentrer FNAC Darty dans sa nouvelle dimension, avec plus de 30 000 collaborateurs, un chiffre d'affaires qui dépassera les 10 milliards d'euros et un maillage territorial dans nos pays de plus de 1 500 points de vente. Nous sommes parfaitement concentrés sous la parfaite... Execution of the integration of Niero is beyond the potential of the synergies that we expect. It is a rapprochement that allows us to return to Italy in the position of leaders. But also, it will allow us to affirm and strengthen the European dimension of our group, which makes us even stronger, more resilient and offers us future growth prospects. Évidemment, je voudrais terminer cette présentation, au moins la première partie, en remerciant chacune et chacun de nos collaborateurs et collaboratrices pour leur engagement de tous les jours. Particulièrement dans cette année 2024, qui a été riche de projets, de challenges et d'opportunités qui nous ont permis collectivement de progresser et de remporter de nombreux succès. Merci beaucoup. Je passe maintenant la parole à Jean-Brieuc pour détailler vos résultats financiers.

Thank you, Enrique. Good evening to all of you. Before going into the details of our performance, and as Enrique commented quickly, we are ending the year 2024 with solid financial results and all of our indicators are growing. We have thus managed to deliver and even exceed the objectives that we had set for the current operational result and our generation of operational fricassees. Before presenting our performance, let me clarify a few perimeter elements. L'activité de billetterie est déconsolidée depuis le début du mois de décembre, après l'obtention des autorisations de la concurrence nécessaires à l'exercice de l'option d'achat qui a été exercée en 2023 par CTS et Vintim. L'impact sur les résultats financiers de cette année est donc non significatif. Il en sera différemment pour 2025 et nous y reviendrons dans nos perspectives. Ensuite, la finalisation de l'acquisition d'une euro, qui vous a été commentée à l'instant par Enrique, a donné lieu à la consolidation des activités italiennes dans nos comptes au 1er décembre, soit seulement pour un mois en 2024. Also, in order to facilitate the reading and understanding of our real performance, I will only comment on the results on the basis of the 12 months of activity of the FNAC D'Arti group outside Uniero. Without further ado, let's look at slide 17, the turnover. Le groupe termine l'année avec un niveau de vente de près de 8 milliards d'euros, en progression de 0,7% en données publiées et de 0,2% en données comparables. Ces chiffres, comme je viens de vous le dire, ne comprennent pas les éléments relatifs à UniEuro et ne concernent que l'activité de FNAC Darty sur les 12 mois de l'année 2024. This performance is inscribed in a context of high geopolitical and fiscal uncertainty, which has weighed on the confidence of the households, with markets that have globally been in decline over the year 2024. In these conditions, the group again demonstrates its ability to overperform its markets. And on the fourth quarter, the activity has been very well carried out, especially since November, with very good performance during the holidays. The figures of the Banque de France of January, published last week, reflect the pursuit of this trend and we continue to overperform them. If we look at distribution channels, store sales show a good dynamic with a rise in cash flows. Online sales, on the other hand, are recovering with growth, with an increase of more than 2% and they benefit from the initiatives mentioned above. One of Fnac Darty's advantages is the weight of its omni-channel sales, which also progress by 1.7 points and represent 52% of online sales by the end of 2024. Let's now move on to performance by category. Tendencies are similar in all covered areas. Despite the unfavorable impact of gaming activity, all categories have been progressing this year. The editorial products are lagging behind, impacted as anticipated by a particularly high comparison base in gaming, which, I remind you, quickly displayed a record activity in 2023. Conversely, the performance on the book remains very well oriented, mainly due to the attraction of new reading trends. Services continue to show a strong growth in all regions, notably thanks to the pursuit of the development of subscriptions, Dartimax and Fnac Vdigital offers. Today, we have reached 1.4 million subscribers online with our roadmap on the offers of Artimax and Vandenborg Life. And we have observed a slight increase in the churn this year, which is explained, as Enrique has told you, by the increase in the price of all the offers during the first semester. Nevertheless, we always aim to increase the number of subscribers and thus become the leader of the subscription home assistance. Technical products are growing again this year. Telephony and computers are showing good performance thanks to the new products internalizing artificial intelligence functionalities and the start of a renewal cycle. The entire category should continue to benefit from the next innovations. sales of household appliances products are progressing, benefiting from the excellent dynamics of small household appliances, while the sales of large household appliances seem to normalize. And finally, it should be noted that the solid performance of the category of diversification, and in particular the game at the papeterie, shows growth at two figures over the entire year. Let's now look at the operational performance of each of our regions and start with the French-Swiss area. According to data from the Banque de France published at the end of January, Fnac Darty continues to outperform the French market by nearly 2 points by the end of December. Indeed, on the basis of the pondering of the group's mixed products, the market is rising to minus 2, while the group shows a stable business figure in comparable data. Finally, even if this remains insignificant at the group level, Nature & Discovery shows a strong decline in its sales compared to last year, a consequence of the arbitration of households in favor of discretionary products and a strong competition of low-cost actors. Since the beginning of the year, a new governance has been put in place and a new roadmap will be integrated into the strategic plan that will be presented to you in June 2025. Let's now move on to the Iberian Peninsula. The turnover is in progress of 12% in published data and 2.8% in comparable data. Portugal and Spain both show a growth in their sales, notably thanks to an improvement in macroeconomic indicators. Finally, let's finish with the Belgium-Luxembourg area. This area is the only one to show a slightly negative dynamic, at minus 0.9% in comparable data over the year, which results mainly in a strong competitive intensity in the country. In slide 18, we now move on to the evolution of the gross margin rate, expressed in percentage of the turnover. Le Groupe voit sa marge brute fortement progresser à 30,6%, grâce notamment à son orientation servicielle et à la croissance de son parc d'abonnés, indépendamment des tendances sous-jacentes du marché. Or, effet technique de la franchise et l'intégration en année pleine de Mediamarkt au Portugal, qui pèse moins 10 points de base en 2024, Le Groupe affiche un taux de marge brute de 30,7%, en nette progression par rapport à l'an dernier. Concerne les coûts opérationnels en salle de 19, il s'élève à 2,2 milliards d'euros en 2024, en légère progression faciale de 1,5% par rapport à 2023. Hors intégration de Mediamarkt au Portugal en année pleine et des coûts de lancement de l'activité Waven, il ne progresse que de seulement 0,6%, soit 13 millions d'euros sur une base à 2,2 milliards. Et ils sont stables, exprimés en pourcentage du chiffre d'affaires. The Group once again demonstrates its operational agility, with a rigorous mastery of its costs. The embarked effect of the increase in rents, the full-year impact of NAOs, as well as the inflation observed on other costs have been almost compensated by the effectiveness of performance plans, declined in all directions of the cost and by the decrease in energy costs. Now let's move on to the other elements of the result account in slide 20. The ROC, the current operating result, is set at 182 million euros, in line with the target announced of at least 180 million, and in a progression of 11 million compared to last year. The operating margin rate is set at 2.3% and is the consequence of the progression of the gross margin level, despite a slight decrease in volume, and the solid control of operating costs, almost compensated by the efforts of performance plans, as we have just seen. The non-current elements are established at minus 31 million. On a normative level, which we have observed historically, this year they include mainly 39 million euros of exceptional charges, composed of the complement of the fine due in the framework of the ADLC litigation for 24 million euros and an impairment of goodwill on activity in Belgium for 15 million euros. They also include 17 million euros of impairment charges on various computer projects and 22 million euros of restructuring charges, mainly related to the management of the real estate market. Finally, we have 61 million euros of positive results following the loss of control of the wallet activity and other non-significant elements, including the cost of acquisition of 1 euro. For memory, this operational result included last year mainly the supply of a provision registered as part of the FADLC grid for 85 million euros. Financial costs rose to minus 85 million, up by 6 million compared to 2023. Les hausses des taux d'intérêt ont eu pour conséquence une augmentation du coût de l'endettement financier pour 11 millions et des charges IFRSS pour 14. Rappelons également que l'an dernier, ils intégraient l'impact de la dépréciation et de la cession de la participation dans le fonds Daphne Purple. The tax burden is raised to 29 million euros and the net current result from the group, adjusted to the 39 million of exceptional non-current elements that I have just described, namely the complement of the DLC amendment and the impairment of the Goodwill in Belgium, is raised to 71 million euros in 2024. In slide 21, let's look at the analysis of the treasury flows available at the end of December. Le cash flow libre opérationnel, or IFRS 16, s'établit à 195 millions d'euros en 2024, en hausse de 15 millions par rapport à l'an dernier. Cela nous permet de dépasser notre objectif de 500 millions d'euros cumulés pour la période 2021- 2024. and the stock level, as every year, is controlled and healthy. Over the year, the rate of growth of stocks has remained at the level usually seen in previous years. Operational investments have risen to €116 million gross and a controlled and stable level compared to 2023. They also include asset cessions, including an arbitration operation by Sales and Lease Back on a logistics store in Ile-de-France, whose cash impact comes to compensate for the tax surcharge linked to the resolution of the Comet litigation. After taking into account various other elements, and in particular the impact of the deconsolidation of the ticket business, the acquisition of 1 euro and the payment of the dividend in 2024, the group shows a net negative treasury flow of 45 million, which allows us to end the year with a net positive treasury situation of 224 million euros. Quelques mots sur notre structure financière en slide 22. La structure financière du groupe est saine et solide. Nous disposons à fin 2024 de capitaux propres de plus de 1,7 milliard d'euros. Nous avons bénéficié d'un environnement de marché favorable en mars 2024 pour refinancer par anticipation l'intégralité de nos deux souches obligataires par une seule émission pour un montant total de 550 millions à échéance avril 2029 et portant un taux d'intérêt annuel fixe de 6%. This operation has been welcomed favorably by a diversified base of institutional investors in France and internationally and has been overwritten several times. Finally, we have 1.1 billion euros of availability, to which an IRCF credit line and a DDTL are added for 600 million euros not drawn on date. The acquisition of Uniero and its integration in our accounts have no significant impact on our liquidity. With very little gross financial debt, the operation is cash positive. On the other hand, the integration of Uniero will inflate the IFRS16 rental debts for an amount of over 400 million euros, mainly linked to the rent of their store parks. The total group's liquidity position including the RCEF, the DDTL and the cash, rises to 1.7 billion euros and does not include the RCEF of 1 euro, which rises to 150 million euros. This makes us particularly confident about our ability to arbitrate in an opportunistic manner the strategic allocation of our means, whether for external growth, debt relief or a return to shareholders. Nevertheless, we will remain very attentive to our financial leverage ratio. Ce dernier s'élève à 1,9 fois contre 1,8 fois l'an dernier, respectant nos covenants. Toutefois, retraités de l'entrée en périmètre du Niero et de la sortie de la billetterie, le levier aurait été de 1,65 fois en 2024 contre 1,8 fois en 2023, en ligne avec notre ambition de diminution et d'atteinte d'un ratio de 1,5 fois à fin décembre à moyen terme. Group notations by the main rating agencies, Standard & Poor's, where we are WB plus negative perspective, Fitch Ratings and Scope Ratings, respectively WB plus and Triple B, both with stable perspectives, translate their trust in the relevance of the group's omni-channel model, its operational performance and its financial discipline. In slide 23, FNAC Darty will propose to the next General Assembly of shareholders, scheduled for May 28, 2005, the payment of a dividend of 1 euro per share in an increase of 55 cents compared to last year. This amount represents a distribution rate of nearly 40%, calculated on the net result of the group of continued activities, adjusted to exceptional elements that I have described previously. This is in accordance with the previous years and the policy of return to shareholders presented in the strategic and everyday plan. The coupon issuance date is set for July 2, 2025 and its payment is set for July 4, 2025. Let's move on to slide 24. As announced in the introduction, you can see on slide 24 the combined accounts of the Fnac Darty group, including 12 months of UniHero activity. With this consolidation operation of the European market, we are strengthening our position as the leader of the specialized distribution of electronics and household appliances products in Europe, the South and the West. Our group is taking on a whole new dimension, since it represents more than 10 billion business figures, 209 million current operating revenues, or an operating margin of 2% before taking into account synergies, and 232 million euros of free cash flow. Nous sommes confiants pour délivrer des synergies opérationnelles significatives que nous avons estimées à date à plus de 20 millions d'euros avant impôt en année pleine et qui proviendront principalement des économies d'échelle sur les achats pour environ 10 millions d'euros et de l'intégration des marques propres pour une autre dizaine de millions d'euros. Indeed, this approach offers us the opportunity to put together expertise around products under brand and under license, in order to optimize the product offer and optimize the existing structures of the group, including the sourcing offices present in Hong Kong and Shenzhen, and which are not available at Uniero. And of course, we will examine other opportunities to synergize as integration progresses, which could be based on services, the marketplace, advertising, for example, but with a time horizon probably a little longer. This new dimension for the group was not made to the detriment of our debt. Nous avons, je vous le rappelle, réalisé l'acquisition du Niro avec une composante titre et une composante cash. Cette dernière s'est élevée à 69,5 millions d'euros, non qu'avec un impact quasi nul sur notre levier. Je repasse maintenant la parole à Enrique pour conclure cette présentation, avant que nous ne répondions à vos questions. Merci beaucoup Jean-Brieuc.

Fort de tout ce que nous vous avons présenté, nous abordons l'année 2025 avec confiance et détermination. We anticipate in 2015 a mid-single-digit growth in current operational results, out of UNIERO, compared to ROC in 2024, out of the impact of the decontrolization of the ticket business. Indeed, as has been said, the session of 17% of France Ticket in December 2024 will have an impact of around 10 million euros on current operational results. The prospects are therefore established taking into account this impact. On regard des succès et de l'avancement de notre plan stratégique, et pour tenir bien en compte les nouvelles réalités du groupe, nous vous donnons rendez-vous en juin pour la présentation de notre nouveau plan stratégique et la mise à jour des objectifs moyens, termes, des groupes, incluant Uniero. Voilà, on arrive à la fin de notre présentation. Merci beaucoup à tout le monde pour votre écoute. And now let's move on to answer your questions. So, we have a first question from Emmanuel Daché. Sorry, I don't know all the names of the families by heart. He asks the question, Hello, the number of Artimax clients has reached 1.4 million by now. Are you confident in your capacity to reach 2 million by 2025 ? Oui, nous restons bien dans notre ligne. C'est ce que j'ai dit à mes équipes. Dans les courses, il y a la course, après il y a le sprint. Et il y a deux éléments peut-être qui sont intéressants à comprendre. L'année dernière, nous avons passé ces hauts épris pour adapter les coûts de l'inflation, qui a provoqué probablement un peu des... the effects of churn and also a bit of slowdown of the conquest, even if it remained very dynamic. And then the subjacent markets of products, it has not been very dynamic, especially the large household appliances products. So what we are modelling today is that, given that and other things that have not been announced today, but that count on innovation, the evolution of offers, etc., we are counting on it, we are projecting our objectives for the end of 2025. And that will only be the beginning, because obviously we will not stop in December 2025. We have another question from Christian Devim from the CIC. It's a question about the operating margin of 1 euro 1% in 2024. It seems to be published very quickly, we have to adjust it quickly. Is this the case? If so, is it because the adjustments of 1 euro are common elements in the infinity definition? On n'avait pas eu le temps de regarder les détails, et justement d'Uniero.