Fnac Darty Sa Ord

Good evening to all. I'm very pleased to be with you today to comment on our 2025 annual results, a defining year for the group with, of course, the launch of the Beyond Every Day plan. I'll begin by presenting the highlights of the year and then Jean-Brieu. Our CFO will detail our financial results. The figures we're presenting today follow on from the preview of the 26th of January after the EP Group tender offer. Lastly, I'll come back for the conclusion. It will be available, both of us, to take your questions. So if you're following the slides, number four, our revenues up. 0.7% on the year, notably driven by services posting a double-digit growth across the majority of geographies. Trends and consumption, the situation is contrasted. We have a challenging consumption situation in France, notably in Q4. In this context, we're nevertheless up. It's a good performance that we believe two points above the market trend according to the figures published by the bank of france at the end of january the rest of europe were delivering strong growth of plus 1.1 percent driven by very good performance in spain and portugal our results are therefore solid with current operating income of 203 million euros that's two percent of our revenue and a very solid free cash flow at 145 million euros as i said jean-brio will return in detail on these figures in a few minutes we presented back in june 2025 our new strategic plan beyond every day through 2030. This plan follows on the successful previous plan. Last year, as you know, only 26 EP groups are leading shareholder through its subsidiary visa announced the planned tender offer on our company over the years we've built a trustful relationship with them and we welcome this expression of interest moving to slide five up to the success of our every day plan beyond every day projects us into the future resting on three strategic pillars that we'll recall to become the benchmark play on high value added products and to accelerate the rollout of subscription services with circularity as the main focus secondly define the market standards in terms of customer experience across all touch points and lastly develop our expertise with our partners and across all geographies through 2030 we've also defined ambitious objectives at group level and notably in financial terms with growth of our operating margin to reach at least 3% in 2030. cumulative free cash flow of at least 1.2 billion euros over the period 2025-2030. We're going on the first pillar that's focused on the rollout of subscription services and circularity. We got specific indicators to measure our progress and reach our objectives. aiming for 4 million subscribers by the end of 2030. At the end of 2025, we've already reached 2.4 million subscribers. We aim a twofold increase of our on second life offer. In 2025, we recorded growth of 24% over 2024 on the same offer. Lastly, at the end of 2030, a contribution of service activities to our growth margin from 25 to 30%. We're already at 27% at the end of 2025. That's a growth of 200 basis points over 2024. develop the reflex of repair and purchase of reconditioned products requires very proactive initiatives to strengthen transparency on household products and to remove obstacles to second life products only 2026 we launched the digital passport for large and we aim for the deployment of 1 million products by the end of the year. Moving to slide seven now. On pillar two of the Beyond Every Day plan, we want to define the market standards in terms of customer experience across all touch points. This requires investing in our stores over the duration. We plan to renovate over 200 stores and to open 150 stores over the lifetime of the plan. This year, we've already reopened the FNAC at Callao, center of Madrid. The new store at Barcelona transferred to the Ramblas and the new FNAC in Dijon. For Darty, we've opened Rouen in the Dark 76, a shopping center still benefiting from the latest innovations. The momentum of openings will continue in Portugal, where at the end of the year, we launched the Dati brand that we plan to develop. The brand has already benefited great spontaneous recognition amongst household and consumer electronics in Portugal. just a few months. Store traffic is up 4% and revenue is up 10% since the change in the brand. Return to pillar three. We'll deploy our expertise with our partners and across all geographies. Online sales are up almost 6% in 25 with an increase in traffic and volumes representing 22% of total group sales today. Click and collect continues to confirm its success. It represents over 50% of our online sales and we in fact have more than 9 million products recovered in stores in 2025. This figure shows the power of our model. We've seen a very dynamic activity in 2025 in our marketplace activities of the reverse marketplace and our JV for logistics, weathering held equally. That's continuing to grow strongly. Second life activities, both for FNAC and DATI, represent an important share of this momentum. All in all, its sales growth are close on 10% on these channels. a word of uni euro integration 2024 the acquisition of uni euro in italy was a defining deal for the group integrations progressing very well molto bene the french and italian teams are working hand in hand on deploying the plan beyond every day both digital logistics with the new warehouse opened at Colla Ferro near Rome. Renovation of points of sale and store openings were also developing large scale. for retail media, as we've done in France. The objective of at least 20 million in synergies by the end of 2026 is confirmed and has already begun to materialize this year. Operating performance of Italy is very satisfactory and alone accounts for over 60% of sales. the COI growth of the rest of Europe. A word on the current takeover of Britain to conclude my section of part one. I'll return to the announcement of the... that communicated an all-cash offer for Fnac Dati Shares. EP Group has been our major shareholder since 2023, and through its subsidiary, this owns 28.5% of our capital. The offer price, €36 per share, represents a 19% premium before the closing prior to the offer date. January 23 and premiums respectively of 24, 26% of the average price of the one month and three months. This is of course submitted to a mandatory threshold of 50% of the capital voting rights by the AMA subject to the regulatory authorities in terms of competition law and control of foreign investment. EV Group has indicated that it didn't plan to solicit a mandatory withdrawal after the offer. After an in-depth examination of the proposed offer, the board favorably received the operation unanimously. It will deliver its reasoned opinion in the coming weeks after the report of the independent expert and the advisory opinion of the staff committee. The filing of the offer is expected in the coming weeks before the end of Q1. On slide 11, the EP offer continues on the solid partnership we forged together for several years now. It's a major milestone to accompany the acceleration of our strategic plan beyond every day. In the current environment marked by profound changes of expectations and consumer behavior, the support of a long-term stable shareholder is a great asset. Lastly, I'd like to emphasize that our dividend policy remained on-chain, with a payout ratio of about 40% over to Jean Brier, our CFO, to detail our results.

Thank you, Enrique. Good evening, everyone. Thank you for being here with us. Let's start with slide 13. You have the new basis for 2024 for financial statements because of two items. The first item is the IFRS 5 restatement of nature et découverte at the bottom of the income statement because since the COVID crisis, the business nature et découverte faced significant pressure on household purchasing powers and the emergence of online players offering very low-cost products. The model, Nature Découverte, needs to be adjusted. The turnaround plan that we've been implementing for 12 months or so unfortunately didn't come to fruition, and so we start looking for a partner that seems necessary if we want to have a rigorous management of our portfolio. The effect that you see on the slide is related to the results of 2024. It's minus 172 million euros on revenue, but positive on COP to the tune of 14 million. I'll give you comments in a few minutes, a few details about 2025. The second restating is more marginal. It's about uni-euro. with the recording of Goodwill as per purchase price allocation to the tune of 6 million euros in 2024 allocated to the rest of Europe because it is about Italy. The amount for 2025 is roughly identical. And so the developments that I will comment in a moment are based on these restated figures for 2024, that is, Revenue 10.3 billion euros and current operating profit 200 million euros. Let's look at the results for 2025, slide 14. You can see on this slide the key figures for 2025 as Enrique pointed out a few moments ago. We're pleased with the group's performance in view of a very challenging context in France for the retail industry with significant pressure on consumption and household confidence. Revenue of the group at end 2025 was slightly up, plus 0.7% like for like at 10.3 billion euros. Gross margin kept growing, reflecting the robustness of the omni-channel model. Operating margin was 2% at end December 2025. up compared to 2024 with a good management of wcr uh operating free cash flow not including ifrs was 145 million euros up 20 from 2024 not including disposals slide 15 now Enrique pointed out that online sales grew significantly, 6%. They account for 22% of revenue and about 50%, and 50% of them are done through click and collect. Let's go through categories. Services kept growing with double-digit growth in most countries because of an enriched offer and the rolling out of DartyMax and Fnac vDigital. With all services, we had 2.4 million subscribers at end 2025 compared to 2 million at end 2024. Our ambition is to reach 4 million by 2030. Diversification remains also... dynamic with a double-digit growth for toys and games and stationery. Beds that started in our integrated stores at the beginning of the year enjoyed rapid growth just like for the equipped kitchens that are getting popularity. Domestic appliances were up. Small appliances kept growing with beauty tech and equipment. Large appliances were driven by favorable weather conditions, refrigerators, air conditioning, and fans. Editorial products enjoyed the good launch of the Switch console, too, early in June 2025, 150,000 units sold. Books were slightly down because there were no major novelties. And finally, technical products declined because of fewer television and new phone sales. However, reconditioned phones enjoyed significant growth. Personal computers went up, returned to growth with the termination of support services for Windows 10 and a new cycle of new products, as announced, tablets, connected glasses and cameras also enjoyed growth. And then IT components with the Fnac.com in 2025 were very successful. We now are the lead players in all gaming categories. We're trying a new dedicated department for these components. in some pilot stores and on the start.com. Let's look at the revenues per geography. France had sales were up on the like-for-like basis plus 0.5%, but they were down 0.6% in Q4, as we said. Business suffered in December, in particular in stores, and that, of course, drove down the performance in Q4. The numbers published by the French Central Bank confirmed a very challenging context in 2025 for the retail industry with significant pressure on consumption and household confidence. Let's look at the rest of Europe. This gave a very satisfactory performance, like-to-like growth of sales, plus 1.1% for the four-year, plus 1% in Q4. In Italy, revenue was down 1.1%, but Q4 was down 2.1% because of significant competitive pressure on phones and a high basis of comparison for television, but this had no significant consequence on COP growth. Belgium and Luxembourg enjoyed plus 1.8% growth over the year, 3.9% in Q4. That confirmed the good momentum in online sales. Portugal, significant growth, like-for-likes, plus 7.3%, 8.7% in Q4. The two brands, Fnac and Dati, did well both on the web and in stores. And as Enrique pointed out, a very good performance a source that recently joined the darty brand spain displayed an lfl growth of 6.6 percent of the year and 7.3% for the fourth quarter alone. All categories were up over the period, and services had double digit growth. The scope effect for Spain reflected the temporary closing of stores for renovations, but they all reopened by year end. Finally, in Switzerland, LFL revenue was up 5.2%, including 4.1% in Q4. driven by fine growth both online and in stores, and of course the growth of services. Let's look at gross margin, slide 17. Over the year 2025, this was up 50 basis points and 60 basis points not including the dilutive effect of the franchise. This reflected the good performance of services and Darjeel Max in particular. Let's look at other items of the income statement on slide 18. As I said, the gross margin was up at end December. OPEX, including the NAM, was 2.26 billion euros at end 2025, up 38 million compared to 2024, we stated. The higher property costs and inflation on other costs were offset by the performance plans. And so EBITDA at end 2025 was up 15 million euros in current operating profit. COP stood at 2.203 million euros compared to 200 at the end of 2024 restate because of higher depreciation allowances related to leases and IFRS 16. Business in France in December had a negative effect on profitability, but the rest of Europe had a significant improvement in COP, about 15 million. In Italy, that accounted for 60% of the full growth for the region. At the end of 2025, 4 million euros in synergies were recorded. As Henrique pointed out, the objective of 20 million euros was confirmed by 2026. One of the items stood at minus 123 million euros compared to minus 27 at end 2024. This is because of the improvement of intangible assets, no cash effects, 96 million euros, and the recognition of restructuring costs for the same amount as for 2024. Operating profits stood at 80 million euros at end 2025. Financial expenditures stood €118 million, up €21 million compared to 2004. This is because of the higher cost of debt, of net debt, the new financing conditions and the increases of IFRS 16 charges. Taxes stood at €25 million and that included €10 million extra tax for large companies in France. So net income for continuing activities for the group stood at minus 67 million euros, a degradation compared to 2024 where it stood at 43 million euros. But if you really state this for non-current items with no cash effects, the 96 million euros I just mentioned, the net income attributable to the group of continuing activities would have stood at 28, plus 28 million euros at end 2025. The 78 million charge for health facilities is because of the restatement of as a health facility business. Most of this is goodwill monetization to the tune of 60 million euros. and a net loss of the business for 2025, 18 million euros. In 2024, on that line, you had a loss of 19 million euros for Naturem Découverte in line with IFRS 5, plus an income of 2 million euros because of the resolution of the Comet dispute. If you look at cash flow, Operating free cash flow not including IFRS 16 stood at 145 million euros compared to 210 million euros in 2024 we stated. In line with our expectations in 2024 net capex included disposals including a logistics warehouse in the Paris area, the 93 million euros. The change in WCR stood at 75 million euros and this reflects the good management of that in spite of the challenging Q4 in France. The increase in capex is in line with our ambitions. It affects our stores, our supply chain, our IT systems. Italy had increased capex with the opening of a new warehouse in Corifero, which Enrique talked about, and several new stores or renewed stores. The financial position of the group is sound as you can see in slide 20. Net financial debt excluding IFRS 16 stood at 958 million euros with two bonds, 550 million euros due in 2029 and 300 million euros due in 2032. and the remainder of the OCEAN issue, 46 million euros. At end 2025, the net cash position stood at 146 million euros, plus undrawn credit lines, the RCF and DDTL, worth 600 million euros. This undrawn line covers both the issue of 2029 in volume and the 2032 issue in maturity. The S&P Global Fitch Ratings and Scope Ratings agencies published their ratings, respectively BB+, BB+, and BBB-, with a stable outlook, so we have a sound long-term cash profile. Funny about the balance sheet, we have an agreement with the trustee of the Comet Pension Fund in the UK and Canada Life UK to cover all liabilities of this scheme, this pension scheme, With the full buy-in worth 330 million pounds, this operation did not and will not have any significant impact on the group's cash position. And I'll give the floor back to Enrique.

thank you very much jean brie in conclusion i'd like to acknowledge the unfailing commitment of our 30 000 partners and staff serving our customers expectations seeking out all growth opportunities a word on the financial outlook at our shareholders meeting in may we'll propose the payment of a dividend one euro per share equivalent to last year consistent with our shareholder return policy. The ex-state of the dividend will be 3rd of June. In a volatile and still uncertain context, we nevertheless expect an increase in our current operating margin and also our free cash flow. And of course, we confirm our 2030 objectives that I announced as a presentation of our Beyond Everyday Plan in June 2025. thank you for your attention and we're now ready to take all your questions we have a first question from florenti did you have expressions of interest for nature should we expect the cash impact on the disposal well i can answer that nature we launched a disposal process that's formalized we've chosen a bank and an expert to support us to the financial side this stage it's a premature to mention the first expressions of interest we've already received it's too soon to tell you about that yeah we've had some expressions of interest the cash impact on the disposal we'll get back to you when we have more formal expressions and as you said too soon And once again, we confirm our commitment to continue to maintain the activity in stores and all activities around nature and decouverte continuity until we find a right solution and we have time. We've got a second question. Bank of France figures in January are not in a good trend. confirming that similar trend well thank you as you know well we generally do better than the Bank of France figures unfortunately I cannot confirm what was the what the performance is today but we'll see that for the quarter but I'd say the group continues to expand confidently in a context that we know well that we're mastering and uh doesn't in any way jeopardize the guidance we've given for 2026. so not good figures from the bank of france but let's wait the quarterly results to give the market figures we have a question in english i'll read it in english from marcos

And what about the ticketing, concert, music, festival, sport, events? Merci beaucoup.

Well, thanks for that question. It's part of the activities that are significant group-wide that we classify in the services, gift vouchers, experience packs. We're not going to give any specific outlook, but we're a leader in this. And standards set up for ticketing, well, these are segments seeing a major expansion of activity and for shows. These are actually markets that have a great appetite for consumers still in 2026. And thanks to Marco for his question once again. Waiting as the questions come in.

We'll allow a bit more time for questions.

Otherwise, we'll wrap up the session. Are teams, Laura, et cetera, available? Ah, there's a new question just came in. come in on the guidance. Jeremy Garnier, question on the guidance of the operating margin free cash flow, excluding the synergies of the integrated uni euro. What could be an improvement in its upside and scale? Well, thanks for the question, obviously. if we include synergies, levers of our everyday strategic plans, services, commercial dynamic, that's pretty solid across countries, nobody in the South, we saw the figures, Portugal, Spain. So we're continuing to benefit from that. Hopefully consumption dynamism in France will be a bit more favorable, lower inflation and possibly opportunities. for exchanging products, the World Cup in July, and of course the real estate market will perhaps show some signs of recovery, the big and the small already in this re-equipment phase, everything for robotics and floor care, etc. There are a lot of good activities that will drive the business forward and we project the profitability through 2030 at three percent so we need to travel the path and the difficulty 2026 is to boost free cash flow generation and activity to deliver our commits in 2030 we have a question from What level of investment should we expect 2026 in the coming years? Well, 26, we can expect a level that will be broadly similar to that at 2025, maybe slightly higher. We guided on 2030 of investment around 200 million euros on average. So as we said back then, slightly up versus what we were doing historically to incorporate development of IT services, store refurbishment, an important part of the beyond everyday plan. We have another question just in on WCR. Question on WCR chain, plus 75 million. Is there a strong contribution of Italy that explains that high number? Italy contributed, I won't give the exact figure, for quite a substantial share, but not the majority of that growth. All countries contributed 75 million, including Italy, like the other countries. Wait a couple more seconds. We can close this session. Of course, we remain available should you require further and interaction and see you for the next presentation in April and the AGM and following events on the offer that's underway. Thank you for your attention. Pleasant evening.