Fnac Darty Sa Ord

Welcome to this conference call presenting the Q3 performance of NAGDARTI. Without further ado, handing over to Jean-Pierre Le Tignier, CFO of the group. Thank you. Good evening, everyone. Thank you for joining our conference call to discuss our results for Q3 and the first nine months of 2025. This evening, I am joined by our investor relations team, Dominique Vielle and Laura Parizeau. I will begin by presenting our results, and then we will take your questions. I would like to remind you that we are commenting on like-for-like figures, in other words, excluding changes in scope, store openings and closures, and, of course, including uni-euro and after the deconsolidation of the ticketing business. Slide 3 shows the key figures for the first nine months of 2025, which I will detail throughout this presentation. Our sales revenue is up 1.6% on a like-for-like basis for the quarter, bringing the performance at the end of September to plus 1%. This strong performance is mainly due to a return to growth in hardware during the back-to-school period, solid growth in online sales, and, of course, continued strong momentum in our services segment. Our gross margin improved over the first nine months of the year, up 50 basis points. Finally, given these strong results, we confirm our guidance for EBITDA margin growth as communicated in our 2025 half-year results. Let's move on to slide four. I will now comment in detail on the growth of 1.6% for the quarter and plus 1% for the first nine months of the year. By category, the trends are broadly similar across all our geographic areas. Services continue to grow and are showing solid growth in most of the geographies, driven by the development of our subscription offers and, in particular, the rollout of Darcy Max and Fnac Vigie Digitale. Diversification also continues to perform well with double-digit growth in games, toys, and stationery. Home appliances are up compared to the end of September 2024. Small appliances continue to grow, supported by innovations, particularly in beauty tech and floor care. Sales of large appliances are down slightly despite the positive impact of sales of air conditioning and cooling products. Consumer electronics declined despite a strong recovery in hardware sales in the third quarter during the back-to-school season. This recovery suggests that the renewal cycle will continue in the coming quarters. Tablets and photography showed very strong growth momentum. Telephony, on the other hand, declined over the period despite several successful launches in Q3. Meanwhile, refurbished phones confirmed their momentum with strong growth. Television was impacted by a high 2024 comparison base linked to the European Soccer Championship. In addition, we successfully launched the computer components category in August, strengthening our position as a specialist retailer in the gaming world. Lastly, Publishing products benefited from the excellent launch of the Switch 2 console in June. To date, more than 100,000 units have been sold in our stores. Book sales declined over the period due to a sluggish market. By channel, our online sales grew strongly with a nine-month increase of nearly 8% compared to the end of September 2024, and they accounted for 20% of group revenue over the period. Click and collect is a key indicator of our omnichannel performance, and it accounted for nearly 50% of our online sales at the end of September. Finally, our like-for-like gross margin at the end of September, meaning including UniEuro and excluding ticketing, was up 50 basis points. And this strong performance is mainly due to the growth in the services segment, particularly DartyMax, which offset the dilutive effect of the franchise and the negative impact of the product mix. Now, let's take a closer look at the group's performance by geography on slide five. The France region posted that like-for-like sales growth of plus 0.9% at the end of September, including 1.7% in Q3 alone, driven in particular by strong online sales. According to data published yesterday morning by the Banque de France, Snack Doherty continued to outperform the market by more than two points at the end of September. Furthermore, the scope effect for the period corresponds to the permanence closure of the Champs-Élysées store. Let's now move on to the rest of the world, or rather, rest of Europe region, which posted like-for-like sales growth of 1% at the end of September, including 1.3% in Q3 alone, with contrasting trends across countries. In Italy, like-for-like sales were virtually stable at minus 0.6% at the end of September, The third quarter was impacted by high basis of comparison as Italy experienced a heat wave in 2024. Italy's performance moved over the last two years is similar to that observed in France over the same period. Strong growth in online sales and services did not offset the decline in sales of household appliances, telephony, and television. Belgium and Luxembourg posted sales growth of plus 0.9% like for like at the end of September thanks to strong growth in Q3. Portugal posted like-for-like growth of plus 6.5% at the end of September, including plus 10% in the third quarter alone, driven by solid performance from our two brands, Snack and Dirty. Spain posted very solid like-for-like growth of plus 6.2% at the end of September, with plus 3.9% in Q3 alone. All categories are up, with services posting double-digit growth. The scope effect reflects, in particular, the temporary closures of the Cayao Group, and Valencia Bonaire stores for renovation. Finally, in Switzerland, like-for-like sales at the end of September were up 3.6%, including 7.1% in the third quarter, driven by double-digit growth in services. Let's now move on to the rollout of our strategic plan with a few examples of operational initiatives that have been implemented. On slide 6, a word about the launch of the Dorte brand in Portugal. In early October, the group launched a dirty brand in Portugal, marking the beginning of a new phase in the distribution of consumer electronics and household appliances in the country. This launch comes with an ambitious expansion plan aimed at opening more than 30 stores by 2030 as part of Beyond Every Day. This momentum demonstrates the group's strong commitment and the significant potential of the Portuguese market. Slide 7. In line with the first pillar of our strategic plan, Beyond Repair, in which, I would remind you, our ambition is to become the benchmark player in high-value-added products and to accelerate the rollout of subscription services for the home with circularity as the central focus. In early October, the group published the eighth edition of its After-Sales Service Barometer. It's a benchmark tool both for industry and consumers. Please click on the link at the bottom of the page to find out more about this barometer. And this new edition reveals for the first time the symptoms of breakdowns across 100 product categories thanks to the analysis of over 1 million breakdowns reported by our customers and Dirty Mac subscribers. And very soon, the group will launch a range of services and advice for manufacturers, giving them access to the durability data consolidated by the group over nearly 20 years and already used to select the products offered in snack-dirty stores. In addition, we have also broken ground on a new 6,500-square-meter customer care and logistics platform in Chili-Mazarin, which is now the largest site in France for the delivery of bulky products such as televisions and large household appliances. And this opening is fully in line with Beyond Every Day, our new strategic plan, notably by improving the customer experience, supporting the growth of Doidamac subscriptions, and increasingly integrating the circular economy into our processes. Slide 8, in line with the second pillar of our strategic plan, Beyond Digitized Omnichannel, are how the group aims to set market standards for customer experience across all touchpoints. The opening of a new integrated Dardi store in Rouen in the DOC 76 shopping center allows us to test a new store concept with a view to future renovations. The store's signage has been completely redesigned to create a much warmer and more modern atmosphere, as you can see. And from now on, the different sections are no longer organized by product type, large or small appliances, for example, but by room in the house, a laundry room, kitchen, wellness, et cetera. Each area is identified individually. with decision-making aids to guide customers through their shopping experience. So we have a new blue and green signage, which illustrates our desire to further integrate the circular economy into our future points of sale. As for FNAC, the group has reopened the Dijon store in a new shopping center in the city center. It has modernized furniture, redesigned signage, themed areas, and self-service checkouts. Everything's been designed to test new ideas and improve the customer experience. Finally... FNAC has also launched Body & Tech. It's a concept based on three fundamental pillars, sports, smart health, and beauty tech. It's a space entirely dedicated to this new generation of innovative technological products dedicated to wellness and well-being, which has been created on our website, FNAC.com, and for the moment in two of our Parisian stores, La Défense and Forum des Halles. This test and learn approach perfectly embodies the beyond everyday spirit, innovating, listening, and progressing together. Slide 9. Here we're outlining the third pillar of our plan, beyond retail, which consists of deploying the group's expertise to partners and across all geographic areas. The group is consolidating its position as a key player in the cultural ecosystem. It's building on its role as a trendsetter and talent scout. FNAC supports culture through various awards, including the FNAC Novel Prize and the Goncourt des Lycéens Prize for Literature and the FNAC France Inter Comic Book Prize for Artistic Creation. We're also accelerating the rollout of Waven, a company created with Siva Logistics. Since the launch in October 2024, Waven, the group's affiliate dedicated to marketplace operations, has seen its business grow significantly in terms of both the number of partner sellers and orders shipped. The latter have quadrupled this year, with two-thirds of them coming from marketplaces outside the group. In addition, since September, click-and-collect delivery has been available in snack stores. for third-party sellers. Weaven's business is now up and running with an extremely encouraging trend to date. Finally, we are continuing to ramp up our omni-channel retail media business. Our internal retail media agency, RetailLink, has become the first non-food agency to obtain CESP eRetail Data Trust certification. Designed to ensure transparency, reliability, and performance of digital advertising campaign reports, This certification positions RetailLink as a key player in a fast-growing and evolving sector. To conclude, on slide 10, in the context of continued consumer constraints with household confidence down and the savings rate at historic highs in France, we are performing really well, driven by services, activities, online sales, and the consumer electronics renewal cycle that is beginning to materialize. And despite this, these macroeconomic uncertainties, we are confirming our guidance for 2025 and expect our operating margin to increase by 15 bps. It should reach 2% at the end of 2025 compared with 1.8% in 2024 on the like-for-like basis. This slide shows the details of the dilutive impacts related to the integration of UniEuro whose operating margin was lower than ours and the deconsolidation of the ticketing business. As you know, Q4 is very important for the business because it is driven by the peak sales periods in which the group does really well, and we are confident the consumers will be there. We are ready and confident that we will make those major commercial events at the end of this year a real success. We're now available to answer your questions. Thank you very much. Ladies and gentlemen, if you'd like to ask questions, please press Start 1 on your keypad. Question one, Marilyn Ford. Over to you. Good evening. Thank you for taking my questions. Question one, the renewal cycle for IT in particular with the switch to Windows 1. Are you expecting renewed interest for users and is this already reflected in Q3 or do we need to wait until the end of the month, at the end of the year? Now, regarding the new store opening in Portugal, what about the phasing? Have you already secured stores? Do we have some idea? If you could please give us some color. Certainly, we've read in the press that you might be interested in energy room. Do you have any comments on that? Thank you so much. Now, since the back to school period, We've seen the IT renewal cycle materialize. That's something that we expected, and it's happening clearly. So Windows 11 is on its way. I mean, there are updates that have been prolonged, extended, but they won't last forever. Regarding dirty protocol, we will be opening new stores on a regular basis as early as next year. We will move as quickly as we can depending on whatever opportunities arise on the market. Are you saying that you've already secured the number of existing stores? It doesn't take very long to find locations. We've already secured the number of stores. We'll see how quickly we can open them, but early results are very promising. Now, as far as your last question is concerned, I believe everybody knows that this company is up for sale, and it's – Being so, the Engie, it's a company that does home installations, repairs, subscriptions. So obviously these are things that we love and that everybody can relate to. But it's too early to give information on that. There are lots of funds that are interested. They may have a different vision of things. but they have deep pockets. So we're not going to give you any more comments than that. Thank you. If you'd like to ask a question, please press star 1. Any other questions? Please press star 1 on your keypad.

Mr. Loutinier, we have no further questions. Well, that's great. Thank you all very much and have a very pleasant evening.