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Hamburg, Germany General Investor Presentation
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Europe’s leading consumer electronics retailer with good traction 2Our history Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy ESG CECONOMY at a glance Profitable growth More than a retailer Soundly financed / Europe’s largest consumer electronics retailer with leading positions in 9 of 11 markets / Strong diversification across business models, regions, and product categories / Reinvented long term business model („from retail to service platform“) with a proven track record of growth and enhanced profitability / Focus on strategy-aligned investments (e.g., bolt-on- acquisitions) / Transforming our business model to a customer-centric omnichannel platform / Profitable growth businesses complementing retail core business are already substantial in size: − Services & Solutions − Retail Media − Marketplace − Private Label / Proven commitment to solid BB rating and further improving credit metrics / Prudent financial policy and ample liquidity underpinned by a strong improvement of leverage ratio
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1. Company Overview I. CECONOMY at a glance II. Our history III. Purpose & Strategy IV. Environmental, Social and Governance 2. Business model deep-dive 3. Market overview 4. Financials 5. Outlook 6. Capital Market Milan, Italy
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Sales: €22 bn … and growing We are market leader in consumer electronics in Europe 4 #1 / #2 market position in 9 of 11 markets Brand awareness >75% Strategic stake in Fnac Darty S.A. (23.4%) Divestment from Portugal and Sweden Our historyCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy ESG ~2 bn Customer contacts ~38 m Loyalty members +53 Net Promotor Score ~€22 bn Total sales ~€5 bn Online sales ~€1 bn Adj. EBITDA All figures refer to FY 22/23 Traction based on development 9M FY 23/24 vs. 9M FY 22/23 Constant lookout for attractive opportunities in core markets (e.g., recently in DE, NL and CH) Recent expansions in NL, Switzerland, Italy and Germany
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We are well-diversified in terms of both regional and product sales 5 45% 26% 17% 8% IT, phones, wearables Domestic Appliances 2% Photo TV, HiFi Software & games 12% 54% 32% East DACH West/South 2% Others Sales share by regional segments Sales share by product segment Overview segmentation based on FY 22/23 / Eastern Europe: Poland and Türkiye / Western/ Southern Europe: BeNeLux, Spain, Italy / DACH: Germany, Austria, Switzerland, Hungary / Domestic Appliances consisting of small and major domestic appliances (SDA & MDA), e.g. dish washers, washing machines, driers, micro waves, electric tooth brushes, vacuum cleaners, etc. CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy ESG Our history / Wearables include smartwatches, headphones, earbuds, etc. / Others: smaller operating companies
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For the financial year 2022/23 we have delivered on our guidance 6 1Adjusted for FX and portfolio effects, pre-IAS 29. 2Excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects. Financial results and YoY change Sales €22.2 bn +4.7%1 Adj. EBIT2 €243 m +€35 m Adj. EPS €0.08 -€0.05 Free cash flow €257 m +€880 m Moderate increase Clear increase Guidance FY 22/23 ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We updated our outlook twice in FY 2023/24 7 The outlook is adjusted for portfolio changes and does not take into account the earnings effects from companies accounted for using the equity method. Accounting effects of the application of IAS 29 in Türkiye as a hyperinflationary economy are also not taken into account. It excludes non-recurring effects, particularly in connection with the simplification and digitalisation of central structures and processes or changes to the legal environment. // Moderate increase in currency- and portfolio-adjusted total sales // Adjusted EBIT range of €290 m - €310 m // Improvement in adjusted EBIT primarily driven by Western/Southern Europe // Sales growth primarily driven by Western/Southern and Eastern Europe ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy Before update: “Slight increase […]” Before update: “Clear improvement of adjusted EBIT” Our history
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We create Experience Electronics to enrich people’s life – Our omnichannel strategy shows visible progress 1Excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects; 2Adjusted for IFRS 16 leases Usage experience “Growing lifecycle services” Employee experience “Front-line first delivering great customer experience” Shopping experience “Mobile-first omnichannel” Impact experience “Sustainability as part of the core” “ We create EXPERIENCE ELECTRONICS to enrich people’s life ” €21.8 bnNet sales €22.2 bn Slightly above market growth €-533 mFCF2 €257 m Steady growth to c. €200 m FY 21/22 FY 22/23 Growth plan FY 25/26 €208 mAdj. EBIT1 €243 m > €500 m ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy 8Our history
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We transform and enhance our business model to strengthen financial performance with proven track record 9 1Excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects Retail Core: Moderate sales growth & c. 30% online share c. €45 m Retail Media Income €750 m Marketplace GMV Up to 20 Lighthouses >€500 m EBIT1 FY 25/26 Ambition until FY 25/26 c. 5.5% Services & Solutions income (% of total net sales) c. 5% Private Label share ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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10 Our history We are not just any retail company Our history ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy
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CECONOMY’s transformation from a decentralised retailer to a customer-centric service platform 11 centralised its organisation and optimised processes and country portfolio ✓ established a prudent financial policy reorganised and simplified its shareholder structure Since 2017, CECONOMY has… reinvented long term business model to service platform ✓ ✓ ✓ accelerated transformation, with proven track record✓ / METRO GROUP demerger – CECONOMY officially becomes an independent company / CECONOMY acquires 24.3% of Fnac Darty S.A. as strategic investment / CECONOMY increases its share capital by ~10% to strengthen its financial position / Accelerated transformation with recent update of guidance / CECONOMY defines post pandemic financing structure with a new RCF and a corporate bond / Acquisition of minority share in MediaMarktSaturn (21.62%) financed mainly by capital increase, while Convergenta becoming new anchor shareholder of CECONOMY AG1 / “Lead or leave strategy” – Optimising footprint by selling the Sweden and Portugal businesses / Capital Markets Day – CECONOMY to become a customer-centric service platform / Efficiency program for simplification and digitisation of central structures and processes / CECONOMY responds to COVID-19 pandemic: Revolving Credit Facility with KfW / Shareholder agreement with Convergenta1; introduction of harmonised group-wide organisational structure pre-pandemicpandemicpost-pandemic / Acquisition of Saturn. Operation under the Media-Saturn-Holding umbrella / MM foundation in Munich by Leopold Stiefel, Erich Kellerhals, and Walter Gunz 2017 2018 2024 2021 2022 2023 2020 1990 1979 ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history 1On 14 December 2020, CECONOMY concluded an agreement with the minority shareholder of MSH, Convergenta Invest GmbH („Convergenta“) which included the acquisition, transfer and contribution of the stake in MSH held by Convergenta to CECONOMY. The Convergenta Transaction was closed on 3 June 2022 by entering the respective measures in the commercial register of CECONOMY AG.
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Demerger of METRO and CECONOMY in 2017 12 Overview of transaction structure = old METRO AG legal entity 100% 78.38% / Combination of hive-down and spin-off / Distribution ratio 1:1 Existing METRO AG shareholders received one share in the “new” METRO AG in addition to the “old” METRO share (new CECONOMY share) / CECONOMY held 10% of the “new” METRO AG shares to strengthen its capital base: 9% sold in 2018 1% still in portfolio + Property assets and service companies of METRO GROUP + Indebtedness to third parties + Pension liabilities of METRO AG employees who have already left the company 10% 9% and 1% share of new METRO AG ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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/ MediaMarktSaturn fully consolidated, with minorities/non-controlling interest in P&L and B/S Convergenta transaction in 2022: Simplified governance & structure 13 1Convergenta can increase its shareholding further via conversion of new convertible bond. This corresponds to Convergenta’s intention of becoming a long-term anchor shareholder with a stake of up to 33.7% of ordinary shares. 2Issue price, nominal amount €151 m. Shareholder structure Before June 2022 Convergenta Haniel Meridian Stiftung freenet 78.38% 22.5% 14.2% 9.1% 6.6% 47.6% Beisheim Free float 21.62% / MediaMarktSaturn fully consolidated, with shift of Convergenta’s share to majority shareholders in P&L and B/S / Transaction enables CECONOMY to use tax- loss carryforwards of >€2.5 bn In June 2022 Convergenta 100% 16.7% 11.1% 6.7% 37.5%27.9%1 Profit-and-loss transfer agreement (tax-unity) Remuneration Haniel Meridian Stiftung freenet Free float / 125.8 m new ordinary CECONOMY shares issued / CECONOMY convertible bond (c. €160 m2) / Cash component (€130 m) ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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20% stake in Power Sweden / Share held since divestment of Swedish MediaMarkt business in August 2023 23.4% stake in Fnac Darty / Fnac Darty is a leading French retailer for consumer electronics and household appliances / Thanks to its franchisee system, the company benefits from a solid territorial network with nearly 1,010 stores / Mainly present in France, the Group is also established in Spain, Portugal, Belgium, Switzerland, Luxembourg, Tunisia, Qatar, Ivory Coast, Cameroon, Congo, Senegal and Saudi Arabia. / Stake in the electronics retailer was acquired in 2017 Overview of CECONOMY investments1 14 At Equity Investments 15% stake in M.video / Share held since divestment of Russian MediaMarkt business in 2018 Financial Investments 1% stake in METRO AG / Share held since demerger in 2017 / Additional 9% stake of METRO sold to EP Global Commerce II GmbH in 2018 ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history 6.6% stake in METRO Properties / Share held since demerger in 2017 1As of September 2024
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Freed from the burdens of the past, we are driving our transformation faster “Myth” Shareholders’ conflicts Complex store ownership structure Bricks & Mortar only Unclear strategy Lacking portfolio strategy Shareholder structure simplified, effective governance established, and conflicts resolved Centralisation on national level completed – c. 99% of stores fully owned by the group C. 25% online sales share and we are omnichannel market leader in consumer electronics in Europe Refreshed strategy with clear growth levers and ongoing execution Continuous optimisation according to “lead or leave” portfolio strategy “Reality” 15ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We effectively shifted from being a discount-focused retailer to becoming the experience electronics champion Old to new – our brand transformation Integrating new branding into campaigns, making them more purpose-oriented New bold, dynamic brand design while maintaining identity Focus on messaging our experience in consumer electronics to customers Since 2022 ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy 16Our history Discount-focused retailer, based on aggressive pricing and promotional campaigns Past
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17 Our Purpose We create Experience Electronics to enrich people’s life ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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/ Pick-up in 30 min / Delivery in 90 min via Uber in DE / >1000 physical stores We guide customers through an increasingly complex world 18 1SKU: Stock Keeping Unit; 2As of June 2024 Convenient and seamless shopping experience Customer-centric assortment Lifecycle services Sustainable products and solutions Strong and reliable partner to the industry / Core-portfolio of 7k SKU1s per country / Expanded by 1.6m products via Marketplace2 / Repair and Trade-in Service across all our stores / Financing and Insurance solutions / Own sustainable label “BetterWay” / Wide refurbished products offering / Strong cooperations via our space-as-a-service concepts / Retail Media to support our partners ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We operate in a constantly growing industry 19 1GfK trend analysis, Source: GfK, CECONOMY analysis; 2Including MMS countries, Denmark, France, Norway, Russia, and United Kingdom. Including smart home devices, addressable residential solar PV, AR/VR devices, addressable e-mobility, and digital health; 3Compound annual growth rate between 2022 and 2026; 4Compound annual growth rate between 2021 and 2025 Growth opportunities Sustainability Sustainable and energy-efficient products CAGR3 in energy-efficient category segments1 +50% New product categories Growth in new categories – health, mobility, virtual reality CAGR2,4 +10% Adjacent service business Services for higher convenience and “peace of mind” CAGR2,3 +16% AI-powered consumer electronics AI enhancing user experiences through innovative features Some of the most evident applications of AI are in smart home, creativity and productivity Affordable premium More premium products in key categories of consumers prefer fewer but higher quality items147% ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We are well positioned to gain further share as we are focusing on growth trends 20 Today: Approx. 80% of our product mix on growing categories3 At the same time, we are developing new categories (e.g., E-mobility, AR/VR, fitness, smart home) We design each category holistically (e.g., BaristaClub - not „just coffee machines“, but a full customer experience) 0 5 10 15 20 25 -5% 0% 5% 10% 15% Bubble size: MMS inhouse share of respective departmentMarket size (Oct 23–March 24, €bn) Market CAGR (Oct 19-March 20 vs. Oct 23-March 24, in %) Telecom IT Multifunctional Technical Goods MDA1 SDA2 Brown Goods Office Equipment Photo We are focusing on growth categories 1MDA: Major Domestic Appliances; 2SDA: Small Domestic Appliances; 3Own CECONOMY analysis based on market research data by GfK– An NIQ Company incl. CECONOMY countries w/o LU ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Our four strategic pillars provide direction 21 Engaging employees and customersEmployee experience “Front-line first delivering great customer experience” Omnichannel Excellence growing online and transforming our store portfolio Shopping experience “Mobile-first omnichannel” Creating stickiness offering customers services along the entire lifecycle Usage experience “Growing lifecycle services” Climate-neutral shopping experience and broad range of sustainable products Impact experience “Sustainability is part of the core” “ We create EXPERIENCE ELECTRONICS to e nrich people’s l ife ” ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We are better placed than many competitors to deliver a great omnichannel experience 22 Conditions for a strong omnichannel experience Presence / Market leading position in 9 out of 11 countries2,3 / Network of >1,000 “customer service hubs”2 / Long-standing industry relationships / Supplier services – digital, in-store, and Marketplace / Seamless omnichannel journey / Value-added services online and in-store / c. 50K tech-savvy store employees2 Awareness / >75% brand awareness1 / >2 bn customer contacts p.a.2 / >38 m loyal customers2 Omnichannel Excellence Industry Relationships ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history 1Source: Externally conducted surveys between July to September 2023; 2Based on FY 22/23; 3Own CECONOMY analysis based different sources for 2023
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We are moving from traditional retail to a service platform with attractive and growing business models 23 c. 2.0 bn annual customer contacts Omnichannel Supply Chain | Tech Stack | People | Sustainability Retail Core Retail Media ”Omnichannel Touchpoints“ Online Contact Center … AppStores Direct Social Media ”The Next Big Thing“ Space-as-a- Service Services & Solutions Marketplace Private Label > > ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Our strategy is underpinned by clear KPIs until 25/26 24 1Compared to FY 21/22; 2Marketplace gross merchandise value in % of total gross merchandise value (Marketplace + Retail Online), only countries with a Marketplace considered Our key pledges for FY 25/26… …and further KPI targets # of customer contacts 2.2 bn Sales with loyalty members c. +60%1 Area productivity c. +10%1 Location costs (% of net sales) -0.2%p.1 # of Lighthouse stores up to 20 Marketplace share2 c. 10% BetterWay sales share c. 20% # of Trade-Ins >600,000 # of BetterWay products c. 7,000 Number of repairs c. 3.5 m Centralisation of inbound logistics 80% Delivery and pick-up NPS 70 # cities with zero-emission delivery >80 Carbon emission scope 1&2 Net-zero # of sold refurbished products c. 220,000 Availability >90% Retail Core c. 5.5% Income (% of total net sales) c. 5% Private Label share c. €45 m Income €750 m Market- place GMV Up to 20 Lighthouses 50m loyalty members | c. 30% online share >90% modernization rate | -10% stock reach1 Services & Solutions Private Label Retail Media Market- place Space-as- a-service Retail core Marketplace Services & Solutions regularly communicated to capital markets ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Our key focus areas show transformative progress 25 Business fields KPI FY 2021/22 FY 2022/23 Target FY 2025/26 Retail Core Loyalty members 33 m 38 m 50 m Retail Core Online share 25% 22% c. 30% Retail Core Modernization rate 30% 50% > 90% Retail Core Stock reach progress 10.3 weeks 9.1 weeks (-11%) - 10% Space-as-a-service # Lighthouses 6 8 Up to 20 Services & Solutions Income in % of total sales 4.5% 4.5% c. 5.5% Marketplace GMV €65 m €137 m €750 m Private Label Private Label share 2.3% 2.4% c. 5% Retail Media Income c. €5 m €18 m c. €45 m ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We aim to achieve €500 m adj. EBIT and grow our sales slightly above market growth by FY 25/26 26 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 25/26 20,831 21,361 21,768 22,242 236 237 208 243 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY25/26 >€500 m Slightly above market growth +5.2%1 +36% Momentum builds: Strong 9M 23/24 vs 9M 22/23 1Adjusted for fx- and portfolio effects, pre-IAS 29; 2Excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects 9M EBIT improvement by strong gross margin and cost control Net sales (in €m) Adjusted EBIT2 (in €m) ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Our growth leads to higher gross margin and increased free cash flow generation 27 1Portugal & Sweden adjusted; 2Excluding associates, pre-IAS 29 and excluding non-recurring effects; 3Adjusted for IFRS 16 leases EBIT increase of c. 150% Free Cash Flow increase of c. €700 m Adjusted EBIT Gross margin Adjusted OPEX ratio Net Sales Cash Investments Free Cash Flow3 €208 m1 17.6%1 17.7%1 €21.8 bn1 €254 m -€533 m FY 21/22 €243 m1 17.9%1,2 17.6%1 €22.2 bn1 €258 m €257 m FY 22/23 >€500 m c. 20% c. 18% Slightly above market growth c. €300 m Steady growth to c. €200 m Growth plan FY 25/26Key financial figures ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Based on our growth businesses, we strive to achieve our 25/26 profitability ambition 28 1Excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects Adjusted EBIT margin1 FY 21/22 c. 0.2%p. Retail Core (incl. Space- as-a-Service) c. 0.2%p. Private Label c. 0.2%p. Marketplace c. 0.9%p. Operational Services & Solutions c. 0.2%p. Retail Media FY 25/26 1.0% c. 2.5% Simplified illustration ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Our growth businesses are substantial and further growing 29ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history Surge in gross profit fueled by our expanding growth businesses 1Growth plan FY 25/26 FY 21/22 FY 23/241 FY 25/261 28% 72% Retail Core gross profit contribution Growth businesses profit contribution Simplified illustration
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We aim to offer a climate- neutral shopping experience, the most sustainable range of CE products and be circular business pioneers in Europe We aim to take social responsibility for our employees, suppliers and communities We aim to ensure ethical business practices and a culture of integrity in our company’s steering and management bodies With sustainability as part of our DNA, we pursue an extensive sustainability strategy 30ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history / We have set ambitious climate targets to reduce our carbon emissions / Maximum circularity: Through energy- efficient, sustainably produced and packaged products, as well as through offers that makes products attractive and longer usable for customers / Social Responsibility towards our employees, along the supply chain and in the communities / Diversity plays a central role for the Group / Supervisory board with a broad skillset covering all essential capabilities for prudent oversight / Dedicated sustainability committees monitoring executive progress towards our pledges / Sustainability-linked KPIs for executive remuneration Impact Experience Impact experience is a core component of our strategy. By adapting our offerings and reducing our emissions we aim to help our customers to lead a sustainable lifestyle. To achieve our ambitions, we seek to ensure environmental and social responsibility at every stage of the value chain. GovernanceEnvironment Social
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SDG 7: Affordable and clean energy For the expansion of renewable energy, we continue to advance the group-wide conversion to green electricity and offer green power contracts to our customers. SDG 12: Responsible consumption and production With a c. 2 bn customer contacts per year, we exert a substantial influence on sustainable consumer electronics and actively support a conscious lifestyle SDG 8: Decent work and economic growth As an employer of c. 50,000 people, it is our duty to offer safe and attractive jobs while ensuring that our suppliers adhere to environmental and social standards. SDG 13: Climate action We continuously strive to reduce our environmental footprint by adjusting our product offering, optimising our processes and supporting consumers to repair and buy used products SDG 5: Gender Equality To ensure social diversity, we are working towards a share of women in companies and management positions that reflects the overall employee structure. SDG 9: Industry, innovation and infrastructure We provide people all over Europe access to communications technology and the opportunity to participate in the digital world SDG 17: Partnerships for the goals Through partnerships, we address current and future complex challenges. We have committed to ambitious goals by signing the EU’s Sustainable Consumption Pledge. Our sustainability strategy focuses on 7 of the United Nation’s 17 Sustainable Development Goals (SDGs) 31 Our Sustainable Development Goals (SDGs) The UN’s 17 SDGs are among the world’s best guidelines for sustainability. They set out a clear plan for sustainable social development while also accounting for environmental constraints. Our materiality analysis has identified seven SDGs on which our own sustainability strategy is based. ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Our environmental, social and governance focus areas 32ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history EnvironmentGovernance Climate action Resource conservation Management and leadership Data protection & Information security Reduction of GHG emissions through emission-free energy sourcing, low emission logistics and sourcing and sale of more energy efficient products Reduction of resource consumption through promotion of sustainable products, extension of product lifecycles and waste management Integration of compliance and ethics within managerial structure and guidelines Safeguarding of the safety and integrity in storing and managing data and information Focus areas Social Diversity, equality and inclusion Working conditions Development & talent promotion Promotion of fairness at the workplace and reduction of barriers for diversity Promotion of a desirable workplace that supports employees Promotion of employees’ personal and professional development Effects on suppliers Partnerships with suppliers and industry partners to achieve ambitions
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We have set ourselves ambitious sustainability targets 33 1Directly purchased electricity; 2In Private Label, external brands, transport and distribution, baseline 2022, SBTi targets Our growth levers Environment Reducing carbon emission Our ESG ratings Rating company 2022/23 Update 2023/24 MSCI A April 2024 AA CDP B- February 2024 B Sustainalytics 15.8 March 2024 13.3 ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy 0.3% of our carbon footprint 99.7% of our carbon footprint Scope 1&2 Our operations Scope 3 Upstream and downstream At least absolute target reduction of 58% by 20331 At least absolute target reduction of 33% by 2032/332 Our history Approved “Science Based Targets” (SBTi) and participation in the EU Sustainable Consumption Pledge Beyond Value Chain Mitigation (BVCM) actions buying CO2 certificates for all not reduced and unavoidable Scope 1&2 GHG emissions Renewable Electricity use in 100% of our stores, headquarters, central hubs and warehouses since January 20241 CECONOMY will engage 74% of its retail suppliers by sales volume to set climate targets until 2028
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Sustainability is part of our DNA and represents a growing business opportunity 34 Sustainable products Trade-in products (in thousands) Refurbished products (in thousands) FY 2021/22 FY 2022/23 c. 70 c. 218 +211% 8,000 18,000 FY 2021/22 FY 2022/23 +125% Used devices exchanged for a gift card Number of BetterWay products and sales share Used devices repaired & sold for a second lifecycle 3,000 4,900 FY 2021/22 FY 2022/23 +63% c. 9% c. 12% Environment ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy Our history
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By marking more sustainable products with BetterWay, we are guiding customers towards a sustainable lifestyle 35 1By our definition, BetterWay products (products labelled with the BetterWay logo) equal sustainable products BetterWay products in our assortment1 Environment A product qualifies to receive the BetterWay logo when it fulfills at least one of the following criteria: BetterWay serves our customers a tool to navigate the increasingly complex product specifications landscape, helping customers cut through the informational noise. Based on our set of solid criteria, our BetterWay logo signals to our customers a high degree of economical friendliness, 1,080 1,239 3,207 4,933 FY 19/20 FY 20/21 FY 21/22 FY 22/23 7,000 Our target for FY 25/26 It is certified with a Type 1 ecolabel It is among the most energy-efficient products according to the EU energy label + additional BetterWay criteria It is among the most repairable products according to the French Repair Index It is made from certified recycling material ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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Social: we care for our employees 36 Social Employees from 133 nations Share of female employees Training 3.2 days per employees 39.4% 22% 13.9% Women in management positions Share of women in top two management levels Part-time ratio 31.4% Our efforts on diversity and equality in FY 22/23 ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history
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We integrate sustainability into our governance Our sustainable governance CECONOMY AG Management Board Sustainability department Sustainability-Manager at country organisations Implementation of strategy in countries Business owners/ departments Implementation of sustainability in departments Subsidiaries Implementation of sustainability Supervisory BoardThe company’s sustainability strategy lies within the core responsibilities of the CEO Our Sustainability department controls the implementation and further development of our sustainability strategy Targets, measures and progress are regularly discussed with the Supervisory Board which includes two ESG representatives ESGCECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview 37Purpose & StrategyOur history Sustainability is integrated into the executive compensation structure, with LTI linked to sustainability objectives Governance
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Collaboration between Supervisory and Management Board following the German two-tier governance system with defined responsibilities Management Board (2 members) Supervisory Board (20 members) Employees’ representatives (10 members) Shareholders’ representatives (10 members) CECONOMY CECONOMY Group has more than 20,000 employees. Therefore, the number of seats on the Supervisory Board (20) as well as parity participation are required by law 7 employee + 3 labour union representatives CEO CFO Election Election Owners1 Reports, e.g. on development opportunities, corporate planning and strategy, risk profiles and specific risks Appoints and dismisses, supervises and advises, determines remuneration system, approves certain transactions Conducts company business, manages business operations, strives for sustainable added value Chairperson chairs General Meeting Approval of actions, (non-binding) approval of remuneration system Domestic employees General Meeting (shareholders) Approval of actions, determination of remuneration CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview 1Certain measures further require a resolution of the General Meeting, e.g. appointment of the Auditoror capital increase 38Purpose & StrategyOur history ESG Governance
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CECONOMY‘s Supervisory Board – Diversity profile 1Based on direct representation of major shareholder group in supervisory board Age Nationality 55% 15% 30% <50 yrs 50-60 yrs >60 90% 10% German Other Member of CECONOMY’s Supervisory Board since 30% 40% 30% <2yrs 2 to 4 yrs >4yrs 10 shareholders’ representatives 10 employees’ representatives Supervisory Board demographic overview 39CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy 20% 80% Shareholder Other Direct shareholder representation1 Our history ESG Governance
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CECONOMY Supervisory Board – Shareholders‘ representatives As of September 2024 THOMAS DANNENFELDT Chairman of the Supervisory Board Self-employed entrepreneur Born 1966, German Member since 2021 40CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy Katrin Adt Born 1972, German Member since 2021 Vice President Corporate Audit, Mercedes-Benz Group AG Sabine Eckhardt Born 1972, German Member since 2020 Non-Executive Board Member, Advisor and Lecturer Karin Dohm Born 1972, German Member since 2016 Member of the Management Board, Hornbach Baumarkt AG und Hornbach Management AG Birgit Kretschmer Born 1970, German Member since 2024 Chief Financial Officer, C&A Mode GmbH & Co. KG Peter Kimpel Born 1968, German Member since 2024 Independent Entrepreneur and Senior Advisor Doreen Huber Born 1982, German Member since 2022 Independent entrepreneur, investor and partner, EQT Ventures Jürgen Kellerhals Born 1964, German Member since 2022 Independent entrepreneur Christoph Vilanek Born 1968, Austrian Member since 2019 Chief Executive Officer, freenet AG Erich Schuhmacher Born 1967, Austrian Member since 2022 Several leading roles at Convergenta Invest and Managing Director of several shopping centers and trading companies Our history ESG ESG Officer Governance
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CECONOMY Supervisory Board – Employees‘ representatives As of September 2024 Juergen Schulz Deputy Chairman of the Supervisory Board Department manager of the Service Department, Saturn Bielefeld Born 1961, German Member since 2015 41CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy Daniela Eckardt Born 1974, German Member since 2017 Service Coordinator, Saturn Alexanderplatz Berlin, Deputy Chairwoman of the Works Council, Saturn Alexanderplatz Berlin Henrike Eickholt Born 1965, German Member since 2024 Regional department head, ver.di trade department North Rhine-Westphalia Paul Lehman Born 1987, German Member since 2023 Trade Union Secretary, ver.di Oberfranken Jascha Sperl Born 1977, German Member since 2024 Chairman of the General Works Council and Retail Salesman, Computer Department, MediaMarkt Heilbronn Sylvia Woelke Born 1978, German Member since 2017 Manager Corporate Risk Management & Internal Controls, MMS Retail Group, Chairwoman of Works Council Corinna Groß Born 1968, German Member since 2023 Trade union secretary, ver.di Landesbezirk NRW Maria Laube Born 1990, German Member since 2023 Chairwoman of the Works Council, MediaMarkt Rosenheim, Retail Saleswoman, Major Equipment Department, Rosenheim Julian Norberg Born 1983, German Member since 2023 Division Manager and Authorised Signatory Operational Excellence, Media-Saturn Deutschland GmbH Ludwig Glosser Born 1962, German Member since 2017 Lead Problem Manager and Sourcing Manager, IT Service Management, MMS Technology GmbH, and Chairman of the Works Council of MMS Technology GmbH Our history ESG ESG Officer Governance
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Management Board (CEO + CFO) Iris Pruefer Chief Human Resources Officer CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & Strategy 42 Note: as of 30 September 2024 Our history Dr Sascha Mager COO - Germany Dr Karsten Wildberger CEO Dr Kai-Ulrich Deissner CFO Remko Rijnders COO – BeNeLux, Spain, Türkiye, Poland Guido Monferrini COO – Italy, Austria, Hungary, Switzerland Kathy Keppeln Chief Assurance Officer Michael Schuld Chief Marketing & Media Officer Andrew Wolfe Chief Technology Officer ESG Alexander Rauchut Chief Commercial Officer Our Management Board is supported by the expertise of our best-in- class Executive Committee management team Executive Committee Governance
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Modified Management Board remuneration system approved with 91.98% by AGM in February 2022 43 1If a member contributes 5% of his/her defined assessment basis (basic remuneration and STI target amount), the company pays double the amount of his/her contribution (capped to €100,000). 2If a member breaches his/her statutory duties or there is a reason for revoking his/her appointment, his/her entitlements to payment of the variable remuneration will lapse (“malus”); 3Or can be reclaimed by the company after they had been paid (“clawback”). Max. remuneration: CEO → €5.15 m; CFO → €2.65 m Fix (Non- performance- related) Variable (Performance- related) ≈ 43%≈ 57% 1.5%-3.0% ≈ 23% ≈ 34% 3%-6% 34.0%-38.5% Annual fixed remuneration (salary) − Agreed with each Management Board member − Paid in monthly instalments Contributions to the occupational pension plan − Capped at €100,000 per year − Financed by Management Board member and company together (“5 + 10”)1 Other supplemental benefits − Contributions to accident insurance; allowances for health/nursing insurance; assumption of health care costs; company car − Capped at €50,000 per year Short-term incentive (STI) − Granted for 1 financial year and paid out after the end of the respective financial year − Based on: EBIT, sales growth, net working capital, NPS − Payment capped at 200% of target amount Long-term incentive (LTI) − Granted annually and paid out after a performance period of 4 years − Components: financial performance targets + non-financial performance targets − Payment capped at 200% of target amount Malus2 Clawback3 CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history ESG Governance
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Management shareholding programme 44 Shares to be acquired by the Management Board 1Measured by the sum of shares times purchase price CECONOMY at a glance Business model Market Overview Financials Outlook Capital MarketCompany Overview Purpose & StrategyOur history ESG CEO CFO 150% 100% Annual fixed remuneration (salary) X X Approx. 55% achieved Approx. 76% achieved Within 4 years from the start of contract as a member of the Management Board August 2025 January 2027 Amount1 Deadline Progress September 2024 Governance
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Graz-Seiersberg, Austria 1. Company Overview 2. Business model deep-dive I. Retail Core & Space-as-a-service II. Services & Solutions III. Marketplace IV. Private Label V. Retail Media VI. Strategic Pillars 3. Market overview 4. Financials 5. Outlook 6. Capital Market
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Retail Core Building Blocks of our Strategy Rewarding customer loyalty Retail MediaMarketplace Space-as-a- Service Services & Solutions Private Label Omnichannel Supply Chain | Tech Stack People Sustainability Business model Market Overview Financials Outlook Capital MarketCompany Overview 46 Customer Loyalty Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Number of loyalty members across the group in millions myMediaMarkt already launched in eight countries by FY 23/24 with further rollouts planned, e.g. Spain in FY 24/25 Omnichannel communication platform in all countries until end of FY 23/24 Thanks to our new benefit system, we have been able to confirm sound growth in loyalty members in FY 22/23 We are on the right trajectory to achieve our loyalty member target for FY 25/26 c. 33 c. 38 c. 50 FY 21/22 FY 22/23 FY 25/26 c. +50% c. 1.6 Sales with loyalty members in Germany (€bn) c. 1.8 Business model Market Overview Financials Outlook Capital MarketCompany Overview 47 Note: As of September 2024 Our growth levers How we measure success Boosting service quality and loyalty programs to maximise loyal customer base Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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/ MediaMarkt Club (MMC) program was introduced in 2016 / Members gained access to discounts and campaigns / It enables a more individualised customer experience / Additionally, customers will have the option to expand service benefits through myMediaMarkt+ / myMediaMarkt was rolled in October 2022, replacing MMC to build a more intertwined relationship with the customer / Additional benefits are, e.g., zero-interest short term loans and extended right of return / myMediaMarkt+ is a subscription model, offering a range of repair and care services myMediaMarkt is a core program to engage with our customers and elevate the customer experience to a new standard 48 2016 - 2022 Since 2022 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Building Blocks of our Strategy Omnichannel Excellence Retail Core Retail MediaMarketplace Space-as-a- Service Services & Solutions Private Label Omnichannel Supply Chain | Tech Stack People Sustainability Business model Market Overview Financials Outlook Capital MarketCompany Overview 49Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars Customer Loyalty
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We offer unique omnichannel capabilities 50 1Growth plan FY 25/26; 2As of 30 June 2024 22% Leading omnichannel CE player in Europe Online sales share 2.9 4.9 FY 18/19 FY 22/23 FY 25/26 14% Online sales development (€bn) Online Offline Online orders ready for pick-up within 30 minutes Market share growth with significant increase in online and stable market shares offline Click & Collect is used by over a third of our customers Over 60% modernisation rate2 highlights our progress in reaching modernisation rate pledge by FY 25/26 Chat with experts in-store or via video from home c. 30% LIGHTHOUSE Inspiration & experience >4,000sqm CORE Availability & advice c. 1,200-3,500sqm SMART Omnichannel & city center c. 70-500sqm XPRESS Proximity & convenience c. 400-1,100sqm >1,000 stores & 4 store formats Business model Market Overview Financials Outlook Capital MarketCompany Overview Mod. sales growth c. 30% online share1 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Four store formats, all around experience zones, services, and the human touch (1/2) 51 Availability and Advice CORE c. 1,200-3,500sqm 972 stores Omnichannel and City center location SMART c. c. 70-500sqm 8 stores / Traditional store format / Mostly located outside of city centers with parking lots / Main target of modernisation program / Smallest store format / Focus on delivering services and offering supplementary products 491 305 176 DACH West/South East 1 7 Business model Market Overview Financials Outlook Capital MarketCompany Overview >90% Modernization rate1 1Growth plan FY 25/26 Further images on page 117 Further images on page 118 As of 30 June 2024 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Four store formats, all around experience zones, services, and the human touch (2/2) 52 Inspiration and Experience LIGHTHOUSE >4,000sqm 7 stores / Extensive presentation space / Leveraging the full potential of our SaaS2 services / Flagship stores to promote MMS branding Proximity and Convenience XPRESS c. 400-1,100sqm 33 stores / Accommodation of customers’ needs in urban-central areas / Smaller assortment and store size with integration of online offering and advisory 2 4 1 DACH West/South East 24 6 3 Business model Market Overview Financials Outlook Capital MarketCompany Overview As of 30 June 2024 1Growth plan FY 25/26; 2Space as a Service, dedicated store space rented to brands of industry partners Further images on page 119 Further images on page 120 >90% Modernization rate1 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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We target the complete overhaul of core store portfolio by FY 25/26 53 1Growth plan FY 25/26; 2Rental costs & IFRS 16 depreciations, occupancy costs, location depreciations Core refresh: optimised assortment & customer journey increasing space utilisation & service offerings 6 Lighthouse stores with significantly increased frequency & profitability – 20 stores planned until FY 25/26 Successful operation of >10 Xpress stores in Hungary since 2016 – further expansion in other countries - >90%Core modernisation rate Area productivity increased by 3% since 18/19 - target is +10% by 25/26 FY 21/22 FY 22/23 FY 25/26 Smart Xpress Lighthouse Core 30% Location cost development2 % of net sales FY 21/22 FY 22/23 FY 25/26 -0.2%p. Store portfolio development (#stores) Refreshing our store portfolio How we measure success Business model Market Overview Financials Outlook Capital MarketCompany Overview -0.2%p. Location costs (% of net sales)1 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Our future range of Space-as-a-Service should cater to all our partners’ needs Overview of Space-as-a-Service offering (SaaS) [Picture] SaaS offering examples (selection) Business model Market Overview Financials Outlook Capital MarketCompany Overview 54 Saas serves as a complementary business field to improve per square profitability Several SaaS formats are in development to promote supplier products, brand, or campaign Lighthouses function as flagship store formats to utilise the whole breadth of SaaS potential Additional benefits: gain of external expertise, supplier- specific promotions, deepening supplier relationship Branded Elements Boutiques Shop-in-Shop Entrance Statement Up to 20 Lighthouses1 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Building Blocks of our Strategy Growing our service platform 55 Retail Core Retail MediaMarketplace Space-as-a- Service Services & Solutions Private Label Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Our Services & Solutions portfolio responds to customers’ needs 56 1Growth plan FY 25/26 (Operational S&S income (gross profit) in percentage of total net sales) Insurance and warranties (partner based) Sustainability services and others Advice, installation and repair services Consumer financing (partner based)€ Telecom and digital products c. 5.5% S&S income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Deep dive on our Services & Solutions portfolio 57 1Growth plan FY 25/26 (Operational S&S income (gross profit) in percentage of total net sales) Insurance and warranties (partner based) / Extension of producer warranties and expansion of damage coverage Sustainability services and others / Additional services that extend product lifecycle and minimise resource waste, e.g., refurbishment and trade-in programmes / Future subscription services Advice, installation and repair services / Advisory and installation services / Standardised repair services, leveraging supplier connections Consumer financing (partner based) / Provision of loans for B&M and online purchases / Lever to increase sales, profitability and consumer loyalty€ Telecom and digital products in bundles / Sale of a variety of mobile contracts complementing product assortment / Products include software subscriptions (e.g., Office 365) Customer needs Our services Peace of mind and security Sustainable lifestyle Professional support Financial accessibility Convenient shopping experience c. 5.5% S&S income1 > > > > > Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Services along the entire product life cycle – Our "life-time promise" 58 We leverage partners to extend our service offering We put customer in the center of our service architecture (Sustainable) products Recycling of products Provide repairs services Device repairs Enable circular economy with rental models Device- as-a- Service Offer 2nd life produces Refur- bishing of devices Provide services along the entire product life cycle – our "life-time promise" Trade-in Hand out trade-in vouchers Recycle products for customers Offer complementary services (e.g., GSM/G+) Insurance packages c. 5.5% S&S income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars 1Growth plan FY 25/26 (Operational S&S income (gross profit) in percentage of total net sales)
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We expect substantial increase in Services & Solutions income by FY 25/26 59 Our growth levers Operational Services & Solutions Income in % of total net sales2 4.5% 4.5% FY 21/22 FY 22/23 FY 25/26 c. 5.5%Initiatives for store managers to train store employees (train-the- trainer) and continuously improve sales excellence – all addressable employees trained by end of FY 23/24 Introducing subscription based full protection package for all our customer’s devices (“Full care service package”) Building up a service ecoystem where customer can buy services without products Continuous development of own service subscription platform for all countries How we measure success c. 5.5% S&S income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars 1Growth plan FY 25/26 (Operational S&S income (gross profit) in percentage of total net sales)
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Building Blocks of our Strategy Improving our Marketplace offering 60 Retail Core Retail MediaMarketplace Space-as-a- Service Services & Solutions Private Label Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Marketplace enables an endless aisle and enhances customer satisfaction, as well as profitability 61 1Growth plan FY 25/26 Breadth of assortment Store assortment Online assortment Today Store assortment Online assortment Tomorrow Store assortment Marketplace Marketplace Online assortment Yesterday Reduction of online/ offline assortment Launch of Marketplace / Through our web shop, third party vendors are enabled to offer their products to a wider range of potential customers / Purely commissions-based business, allowing for max. choice and availability while reducing stocks / Growth triggered through new product categories and widened assortment, preventing cannibalisation of existing business / Sellers are selected based on extensive quality background checks and matching product offering / Since Q4 2023/24, live in 5 countries, representing ~80% of our sales, with further roll-outs planned €750 m Marketplace GMV1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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We are making great progress in achieving our Marketplace ambition 62 65 137 750 FY 21/22 FY 22/23 FY 25/26 Gross Merchandise Value in €m4 Our growth levers How we measure success €750 m Marketplace GMV1 Assortment: c. 1,500 vendors as of June 2024 offering c. 1.6 m SKUs with aim to further accelerate seller onboarding & SKU growth Delivery promise: Average shipping time3 <9 hours2 Platform reach and expansion speed: Fast-paced roll-out of Marketplace to additional countries Customer satisfaction: Product rating at 4.52, seller rating at 4.2 stars2 Integration of value-added services into Marketplace offering, increasing overall attractiveness for vendors and customers Business model Market Overview Financials Outlook Capital MarketCompany Overview 1Growth plan FY 25/26; 201.01.23 – 23.02.23; 3Median time period between acceptance of an order and marked as shipped by the seller (median); 4Marketplace gross merchandise value in % of total gross merchandise value (Marketplace + Retail Online), only countries with a Marketplace considered Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Building Blocks of our Strategy Making our assortment even more attractive 63 Retail Core Retail MediaMarketplace Space-as-a- Service Services & Solutions Private Label Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Our margin accretive Private Label products are an important part of our assortment 64 1Growth plan FY 25/26 Three key consumer demands… Price Consumers are value-focused and want to buy for the best price Quality Unbroken consumer demand for high-quality products Design Consumers value simple and timeless product design Consumer appliances Consumer electronics Accessories for devices Consumer electronics par excellence Lifestyle electronics with added value Household appliances for every situation Functional everyday appliances Drive recurring purchases✓ Differentiated offering✓ Improve margins✓ Facilitate access to affordable premium products✓ c. 5% Private Label share1 Business model Market Overview Financials Outlook Capital MarketCompany Overview …addressed by 4 very strong Private Label brands Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Deep-dive Private Label brand portfolio 65 c. 5% Private Label share1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Consumer electronics par excellence Lifestyle electronics with added value Household appliances for every situation Functional everyday appliances StrategyExamples / MDA2: high efficient energy class / SDA3: stainless steel(ish) design language / Target on design orientated but price sensitive customers / Strong focus on good price quality equation within brown goods space / Dark, pleasing design with an appearance of a higher quality / Open for innovations, e.g., portable TV / Higher margin product category / Focus on young price-aware consumer groups, looking for reliable accessories / Price entry – but not the cheapest / SDA with competitive pricing and MDA offering value for money / Clear target: B-Brands 1Growth plan FY 25/26; 2Major domestic appliances; 3Small domestic appliances Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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2.30% 2.40% FY 21/22 FY 22/23 FY 25/26 c. 5.0% We set ourselves ambitious targets to grow our margin accretive Private Label business 66 1Growth plan FY 25/26 Rollout of refreshed branding campaign and organisation Our 4 brands (PEAQ, KOENIC, OK, ISY) offer a strong price- quality equation New organisation and overhaul of our category management since end of 2023 New logistics process enabling faster import Share of Private Label in % of overall sales Our growth levers c. 5% Private Label share1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Building Blocks of our Strategy Scaling Retail Media 67 Retail Core Marketplace Space-as-a- Service Services & Solutions Private Label Retail Media Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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General Introduction to Retail Media 68 Retail Media offers brands a unique opportunity to engage with customers at the point of purchase, allowing for higher return on investments We currently provide four Retail Media products, with our main product line, sponsored product ads (SPA), currently available in 10 out of 11 countries 1Growth plan FY 25/26; 2Excluding digital out of home (DOOH) Note: All personal data are handled with the utmost care and compliant with national and EU regulations, e.g., Art. 5 GDPR Retail Media is a young and growing market which allows us to tap into a greater budget pool, beyond promotional advertisement activities Retail Media2 enables manufacturers and advertisers to use the wide reach of our digital and stationary channels for their own marketing activities with measurable results Based on our existing retail platform, industry partners gain access to highly customisable and scalable state-of-the-art marketing solutions c. €45 m Retail Media Income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Growing Retail Media market with growth potential for MMS 69 1Growth plan FY 25/26; 273% online, 27% offline; gross count, no deduplication; source: CECONOMY; 3Source: Statista & IAB Europe; assumption: 20% CE share for Retail; MMS covering c. 60% of European market, leading to c. €3bn potential as basis for market share-calculation Retail Media spendings3 (in bn€) Our value proposition Market opportunity Europe Optimised campaign effectiveness on competitive level: increased ROAS / ROI For advertisers For B2C end- customers More targeted and relevant advertising 3 8 182 4 1 2019 2023 2026E Consumer Electronics Other 4 11 22 CAGR 25% CAGR 28% Additional inspiration for seamless shopping experience Omnichannel customer experience through omnichannel targeting Reach: c. 2 bn omnichannel customer contacts p.a.2 Rich first party data, incl. +38 m loyalty members Of which 75% addressable in our 11 markets (€3 bn) Adjacent market coverage opens up additional potential c. €45 m Retail Media Income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Upcoming Instore Ads Additional Retail Media releases in the pipeline1 Digital Out Of Home (DOOH) Reporting (Omnichannel) Sponsored Product Ads(SPA) A+ Content Reporting (Online) Sponsored Brand Ads (SBA) Future Retail Media offering will be expanded with several new product releases 70 1Growth plan FY 25/26 Reporting (Online) Sponsored Product Ads(SPA) A+ Content Sponsored Brand Ads (SBA) Live in market Reporting (Online) / Continuous strong growth momentum with strong income increase / Launching new products and expanding current offerings for Marketplace vendors to fuel future growth. / New capabilities launched: merger of online and offline customers data offering strong data analytics and a unique omnichannel perspective for suppliers c. €45 m Retail Media Income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Our Retail Media product portfolio 71 1Growth plan FY 25/26 Ongoing Data-driven insights into customer behaviour retrieved from online platforms Detailed product descriptions provided by supplier via automated technical interface to make product more tangible, e.g., product videos Data-driven insights into customer behaviour retrieved from online and B&M platforms Ads are displayed outside of the webshop (for example on Google, Facebook etc..) Product ads pushed to visible position in product listing of search results; auction- based process Ads for increasing brand awareness linking to brand category/product detail page Ads on TV devices supporting video content streaming, e.g., Amazon Fire TV Ads on screens close to point of sale, e.g., showcase, shopping mall with MediaMarkt store Display & Video: one-to-many-advertising on Instore screens to address users at point of sale Sponsored Product Ads (SPA) Sponsored Brand Ads (SBA) Connected TV (CTV) Digital Out Of Home (DOOH) Instore Ads Upcoming Reporting (Online) A+ Content Offsite Audience Extension Reporting (Omni- Channel) Business model Market Overview Financials Outlook Capital MarketCompany Overview c. €45 m Retail Media Income1 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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We are continuously growing our Retail Media business to drive additional income 72 Our growth levers c. 5 c. 18 FY 21/22 FY 22/23 FY 25/26 c. 45 Retail Media Income €m How we measure success 1Growth plan FY 25/26 Rollout to all countries by calendar year 2024 incl. implementation of new products Partnership with global ad-tech company Criteo successfully established Increased promotion of Retail Media services to our industry partners Organic capabilities growth through investment into own business c. €45 m Retail Media Income1 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Backbone of our Strategy Supply chain and tech transformation Retail Core Marketplace Space-as-a- Service Retail Media Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Services & Solutions Private Label Business model Market Overview Financials OutlookCompany Overview Capital Market Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions 73Strategic Pillars
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Online DC Stores We used to run a decentralised logistic network 74 Business model Market Overview Financials Outlook Capital MarketCompany Overview Supplier Customer Yesterday (until 2022) On- and offline business disconnected, no endless aisle experience for customer Inefficient and highly complex stock management Environmentally unfriendly and wasteful organisation of transportation Each supplier delivered to each store decentralised Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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We are moving towards a more centralised logistics approach 75 1Hubs for bulky/Two-men handling (2MH) products; 2NDC = National Distribution Center mainly for “offline” products 2MH Hubs1 Online DC NDC2 Consolidated delivery from supplier to central platform; controlled replenishment Hubs serve as an extended warehouse for 2MH1 goods (Today in DE & ES) Improved stock reach and less stock aging issues Partially central: many suppliers deliver to several central distribution centers or hubs Business model Market Overview Financials Outlook Capital MarketCompany Overview Stores Customer Supplier Today (starting 2022) Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Our goal is an efficient and state of the art omnichannel logistics system 76 Fully central: all suppliers deliver to one central omnichannel distribution center which replenishes the stores and delivers to customers Further expansion of city fulfillment centers Increased availability and improved stock reach1 Business model Market Overview Financials Outlook Capital MarketCompany Overview 2MH Hubs1 Omni DC Stores Supplier Customer Tomorrow 1Same stock reach as Amazon or Best Buy that have 7-8 weeks Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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77 1Information on this page as of June 2023 Business model Market Overview Financials Outlook Capital MarketCompany Overview We are transforming our tech infrastructure and will operate fully cloud based in three years1 Our tech stack transformation The move from single channel and multichannel to omnichannel … … is changing our tech infrastructure +3yToday-3y Cloud B&M We are replacing our legacy IT systems New IT capabilities enable us to develop new business fields (data lake on google cloud) C. 50% of our IT landscape is already provisioned on the cloud Key milestone reached in Q3 2023/24: upgrading our online backend infrastructure to the latest technology Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Backbone of our Strategy Delivering our sustainability agenda Retail Core Marketplace Space-as-a- Service Retail Media Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Services & Solutions Private Label Business model Market Overview Financials Outlook Capital MarketCompany Overview 78Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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We continuously increase the share of sustainable and energy-efficient products in our assortment 79 Our growth levers Double the number of BetterWay products in our assortment to c. 7,000 in FY 25/26 Extension of refurbished products to all product groups with high customer demand Growing share of energy efficient products in top categories (e.g., white goods) Refurbished products – Sold units c. 8,000 c. 18,000 c. 220,000 3% 12% FY 21/22 FY 22/23 FY 25/26 c. 20% 3,207 4,933 7,000 Retail Core BetterWay products in assortment and sales share How we measure success Business model Market Overview Financials Outlook Capital MarketCompany Overview FY 21/22 FY 22/23 FY 25/26 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Our service offering enables the extension of the product lifecycle and drives circularity 80 3.2 3.2 3.5 FY 21/22 FY 22/23 FY 25/26 78 218 FY 21/22 FY 22/23 FY 25/26 >600 Trade-in target across the group in 1,000 devices Repairs – group wide in million Services & SolutionsHow we measure successOur growth levers Business model Market Overview Financials Outlook Capital MarketCompany Overview Focus on organic growth by ensuring profitability & scalability through International Repair Growth initiative Trade-in proposition live across all channels – customers can return used devices for vouchers Strategic partnerships enable us to provide customers with new value propositions around sustainability, e.g., trade-in system is based on group-wide partnership with Foxway Expanding the repair services by offering instant repairs (Smartbar) and remote services Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Backbone of our Strategy Engaging employees and customers 81 Retail Core Marketplace Space-as-a- Service Retail Media Customer Loyalty Omnichannel Supply Chain | Tech Stack People Sustainability Services & Solutions Private Label Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Employee experience: Putting our front-line first 82 1Other retailers including Amazon, Expert, Kaufland, OBI, and Otto Source: Mindline survey conducted for MMS in early 2023; 600 participants in 15 minutes interviews Employer Branding Net Promoter People Store Upskilling Higher employer attractiveness Increased NPP scores Investment into people +31 NPP June 2023 vs J u ne 2021 Roll - out of training is completed Other retailers1 75% 64% 100% of addressable employees were reached by end of FY 23/24 Business model Market Overview Financials Outlook Capital MarketCompany Overview Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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1. Company Overview 2. Business model deep-dive 3. Market Overview I. Retail electronics market development II. Product-mix development III. Competitive landscape 4. Financials 5. Outlook 6. Capital Market Lucca, Italy
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We operate in an attractive and growing market 84 Source: Own CECONOMY analysis based on market research data by GfK– An NIQ Company and further market research sources. 1Poland excluded 77 (46%) 63 (38%) 26 (16%) 22/23 23/24 25/2619/20 71 (50%) 57 (40%) 14 (10%) 18/19 74 (50%) 57 (39%) 16 (11%) 80 (50%) 64 (40%) 16 (10%) 20/21 80 (50%) 64 (40%) 24/25 17 (11%)Σ 142 Σ 147 Σ 160 Σ 161 Σ 165 21/22 +4% +8% +1% +3% -1% 0% +2% DACH Western/Southern Europe Eastern Europe YoY regional market development (in €bn market volume and % of total) / Substantial increase of the addressable consumer electronics market in COVID years / Post normalisation in FY 22/23, growth is expected to resume in the DACH region / Western/Southern Europe market expected to recover after low point in FY 23/24 / Decline in Eastern Europe expected from FY 23/24 due to a challenging environment Business model Market Overview Financials Outlook Capital MarketCompany Overview Product-mixMarket Competitive landscape Market Outlook
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/ IT , phones and wearables expected to grow driven by AI and more expensive price points / Downward trend expected to continue in the Photo segment (cameras and camera accessories) / TV, HiFi share decline as consumers use more alternative devices (mobile) / Strong growth within Software & Games driven by cyclical demand within product lifecycle Market Outlook Consumer lifestyle change continues to impact the consumer electronics product mix 85 Market product segment performance (in % of total)1 45% 45% 45% 44% 44% 29% 29% 29% 31% 32% 21% 21% 21% 19% 18% 3%4% 18/19 2%3% 19/20 2%3% 20/21 2%4% 21/22 2%4% 22/23 23/24 24/25 25/26 IT, phones, wearables Domestic Appliances (MDA + SDA) TV, HiFi Software & Games Photo Business model Market Overview Financials Outlook Capital MarketCompany Overview Product-mixMarket Competitive landscape Source: Own CECONOMY analysis based on market research data by GfK– An NIQ Company and further market research sources. 1Poland excluded
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Upcoming replacement cycles of consumer electronics can accelerate through innovation such as AI integration 86 Source: Own CECONOMY analysis based on different sources. 1Based on Canalys 2024 study Business model Market Overview Financials Outlook Capital MarketCompany Overview Product-mixMarket Competitive landscape Replacement cycles and accelerators 7-10 years 2-5 years 5-7 years Short replacement cycles Long replacement cycles Games Accessories & peripherals Smartphones Gaming Hardware Laptops Desktop PCs SDAs TVs Hi-Fi systems MDAs / GenAI has the potential to accelerate replacement cycles for smartphones and PCs1 / Industry experts forecast the market share of AI integrated phones can reach up to +70% per year by 2028 / Typical replacement cycle in consumer electronics span ranges between 2 to 7 years / AI integrated PCs are expected to dominate the market with an estimated penetration rate of over 50% / Within AI of Things ecosystems, such innovations can even accelerate SDA and MDA replacement cycles in the future1
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We have an established leadership positions in key European markets 87 Source: Own CECONOMY analysis based on different sources for calendar year 2023 We hold the #1 or #2 position in 9 of 11 countries / We maintained our market position in all remaining countries in FY 22/23 / We regained the market leadership in the Netherlands in 2023 #1 #2 DE #1 #2 ES #2 #1 TR #2 #1 IT #1 #2 NL #1 #2 BE #1 #2 AUT #1 #2 HU #1 LU #2 #3 #3 #3 #3 #3 #3 #3 #3 #3 Business model Market Overview Financials Outlook Capital MarketCompany Overview Product-mixMarket Competitive landscape
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We operate in highly fragmented markets Source: Own CECONOMY analysis based on different sources for calendar year 2023; Note: Third party sales not included in top three / Each market contains numerous local players / Slow signs of consolidation visible in several markets / The consumer electronics retail market remains largely fragmented in Europe DE ES TR IT NL BE AUT HU LU 39% 61% Top three Rest 29% 71% 37% 63% 40% 60% 34% 66% 31% 69% 41% 54% 41% 59% 40% 61% Business model Market Overview Financials Outlook Capital MarketCompany Overview Product-mixMarket Competitive landscape 88 Market share of top three retailer in 2023
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Milan, Italy 1. Company Overview 2. Business model deep-dive 3. Market Overview 4. Financials I. Sales & Earnings II. Costs III. Free cash flow & NWC IV. Cash & Debt V. Credit ratings 5. Outlook 6. Capital Market
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c. 2.5%-1.8%+0.5% +3.8% +3.2% +4.7% Top line growing above market while EBIT has recovered after COVID years 90 Note: Adjusted figures from 2021/22 onwards excl. Sweden and Portugal. 1Adjusted for fx- and portfolio effects, pre-IAS 29; 2Excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects; 3Based on adjusted EBIT and reported sales pre-IAS 29 Net sales (in €bn) and adjusted growth1 18/19 19/20 20/21 21/22 22/23 23/24 25/26 21.5 20.8 21.4 21.8 22.2 403 236 237 208 243 18/19 19/20 20/21 21/22 22/23 23/24 25/26 290-310 >500 Adjusted EBIT2 (in €m) and margin3 Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview / COVID disruptions in 19/20 due to store closure, sales uplift the outer years / FY 19/20 impacted by COVID (higher cost, more online, unprofitable product mix), partially compensated by state subsidies Credit Ratings Based on growth plan Based on growth plan 1.9% 1.1% 1.1% 1.0% 1.1%Slightly above market growth FCF & NWC
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CECONOMY product sales remained overall stable – Overall market trends are main drivers for change 91 Company product segment mix (in % of total product sales) 45% 45% 46% 46% 46% 24% 25% 24% 26% 26% 20% 20% 20% 20% 17% 9% 8% 7% 7% 8%3% 18/19 2% 19/20 2% 20/21 2% 21/22 2% 22/23 / Product mix developed similarly with the overall market / Slight differences to market distribution, e.g., Software & Games, due to positioning in market / Overall stable product mix over the years with slight decline in TV & HiFi 1Consisting of small domestic appliances (SDA) and small domestic appliances (MDA) IT, phones, wearables Domestic Appliances1 TV & HiFi Software & Games Photo Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings FCF & NWC
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Past net profit distorted by non-recurring costs 92 Reported net profit/loss (in €m) 158 -218 243 130 -37 0.34 -0.66 0.62 0.31 -0.08 Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview / Valuation of share in FnacDarty weighing on net result in FY 19/20 and FY 22/23 / EPS decline in line with net profit / Number of shares increased from 359 million to 485 million in FY 21/22 as part of the Convergenta transaction1 18/19 19/20 20/21 21/22 22/23 Credit Ratings 18/19 19/20 20/21 21/22 22/23 Reported (undiluted) earnings per share (in €) 1Acquisition of Convergenta Invest GmbH‘s minority stake in MediaMarktSaturn. FCF & NWC
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Significant uptick in online sales during pandemic with lasting effect 93 1Including Marketplace , Net Merchandise Value (NMV). 2,935 4,198 6,932 5,346 4,943 18/19 19/20 20/21 21/22 22/23 25/26 13.7% 20.2% 32.5% 24.6% 22.2% 46.8% 37.5% 37.8% 37.1% 38.4% 18/19 19/20 20/21 21/22 22/23 Online Sales (in €m) and share of net sales Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview / FY 20/21: COVID impact led to strong online sales followed by normalisation / Pick-up rate decreased due to temporary store closures during COVID / Absolute number of pick-ups increased steadily, online business grew disproportionately Credit Ratings Based on growth plan Pick-up rate (as % of online orders) c. 30%1 FCF & NWC
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/ Broadly stable distribution of sales across regions, stronger sales momentum in Western/Southern Europe and Eastern Europe visible / COVID pandemic impacted profitability / Eastern Europe segment reflects strong performance in emerging market Türkiye over time / Currently, the majority of EBIT contribution originates from DACH Our core region in terms of sales and EBIT share remains DACH 94 Regional segment performance 18/19 19/20 20/21 21/22 22/23 Net Sales (€bn) Adj. EBIT margin1 (in %) 0.6 1.22.5 2.4 1.5 0.52.2 0.6 0.9 1.6 0.6 -2.3 1.2 1.6 3.5 1Adjusted EBIT excluding associates, adjusted for portfolio changes, pre-IAS 29 and excluding non-recurring effects. Margin calculation based on sales pre-IAS 29. Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview 18/19 19/20 20/21 21/22 22/23 18/19 19/20 20/21 21/22 22/23 12.0 12.112.6 12.3 12.0 7.2 7.06.8 6.4 7.0 2.1 2.81.6 1.6 1.8 Credit Ratings DACH Western/Southern Europe Eastern Europe FCF & NWC
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Solid margin improvement after COVID based on S&S impact and cost discipline 95 Note: Adjusted figures from 2021/22 onwards excl. Sweden and Portugal. 1Adjusted for portfolio effects, pre-IAS 29 and excluding non-recurring effects 19.4% 18.2% 17.1% 17.8% 17.9% 18/19 19/20 20/21 21/22 22/23 25/26 c. 20.0% 18.4% 17.8% 17.0% 17.7% 17.6% 18/19 19/20 20/21 21/22 22/23 25/26 c. 18.0% Gross margin1 (as % of net sales) Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview / Under COVID: Gross margin declined compared to FY 18/19 due to increase in online penetration and unfavorable product mix (less domestic appliances, more mobile phones) / Recovery since 2021/22 reflecting increasing share of Services & Solutions and growth businesses / Broadly stable OPEX ratio due to efficiency measures, e.g., organisational transformation, centralisation and restructuring Credit Ratings Based on growth plan OPEX ratio1 (operating costs as % of net sales) Based on growth plan FCF & NWC
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-1,023 -1,256 -855 -428 -705 Volatile free cash flow due to strongly fluctuating NWC throughout COVID years 96 Lease-adjusted free cash flow (€m) -133 453 -270 -623 257 c. 200 +392 -233 +401 +427 -277 Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview / Free cash flow decline in COVID years due to inventory build-up, increased investments for transformation and weaker operating result / Strong free cash flow recovery in FY 22/23 mainly caused by working capital management / COVID years have been a primary driver for strong NWC fluctuations / Slowly normalising NWC in FY 22/23 30.09.2019 30.09.2020 30.09.2021 30.09.2022 30.09.202318/19 19/20 20/21 21/22 22/23 Credit Ratings 25/26 Based on growth plan Net working capital and YoY change (in €m) FCF & NWC
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Typical seasonal variation in NWC throughout the year — Cash management improved substantially 97 Note: FYE Sep; 1Inventories plus (i) trade receivables and similar claims and (ii) receivables due from suppliers less trade liabilities and similar liabilities Net working capital1 (in €m, negative) 711 451 769 654 897 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2,282 2,634 1,004 2,352 2022/23 2023/242021/22 / Strong liquidity position / RCF undrawn over the entire period +259 +395 +277 Delta vs FY21/22 411 40 428 670 434 705 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1,926 1,990 1,967 / Negative NWC (cash inflow) is typical in our business / Seasonal swings based on consumer behavior / Significant improvement with main focus on inventory management, also driven by supply chain optimization +293 +202 +128 Delta vs FY21/22 +41 +70 576 Q2 +165 Q2 +185 897 2022/23 2023/242021/22 Q3 533 +493 Q3 +281 732 Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings Cash & cash equivalents (in €m) FCF & NWC
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FCF development over the years 98 1Lease-adjusted FCF subtracts the repayment of lease liabilities for better FCF comparability under IFRS 16. Year-over-year development of FCF (in €m) €m FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 EBITDA 465 991 948 866 813 Δ NWC -392 297 -354 -381 332 Tax -152 17 -104 -130 -109 Other 144 -138 -41 -229 -33 Cash investments -193 -184 -216 -254 -258 Free cash flow (FCF) -128 983 233 -127 747 Lease repayment -5 -530 -503 -496 -489 Lease-adjusted FCF1 -133 453 -270 -623 257 / Substantial jump in EBITDA from FY 18/19 to 19/20 caused by change of accounting of leases under IFRS 16 / Substantial free cash flow in FY 19/20 due to growth in NWC / Significant increase in cash investments for modernisation efforts Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings FCF & NWC
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NWC development over the years 99 Year-over-year development of NWC (in €m) €m FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Inventories 2,548 2,949 3,111 3,176 2,918 Trade receivables and similar claims 455 488 361 440 490 Receivables due from suppliers 1,295 1,302 1,142 1,296 1,207 Trade liabilities and similar liabilities -5,321 –5,996 -5,470 -5,340 -5,320 Net working capital -1,023 –1,256 -855 -428 -705 Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings / Receivables due from suppliers occur e.g. as cost reduction or reimbursement: Supplier compensation is frequently linked to certain product sales targets agreed with suppliers. It is often referred to as “later income”. Receivables are recognized on an accrual basis, provided a contractual agreement is in place and that realization is likely. FCF & NWC
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Since our bond emission in June 2021, CECONOMY has a low and stable financial debt on a lease adjusted basis 100 2,141 2,067 1,961 1,784 252 281 798 812 800 50 18/19 19/20 20/21 21/22 22/23 Σ 302 Σ 2,422 Σ 2,865 Σ 2,773 Σ 2,584 1,184 1,484 1,582 769 897 18/19 19/20 20/21 21/22 22/23 Cash & cash equivalents (in €m) Gross debt components (in €m) Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview / Cash & cash equivalents are mainly impacted by changes in net working capital (NWC) / FY 20/21 negative NWC impact compensated by cash-in from bond emission / From FY 19/20: Application of IFRS 16 (accounting of leases), no change in business model / Lease contracts with low duration provide high flexibility (average remaining duration ~2.8 years, decreasing YoY) Credit Ratings Financial debt Lease liabilities FCF & NWC
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CECONOMY has no major debt repayment before 28/29 101 Components of net debt pre-IFRS 16 (in €m) Financing structure (in €m) / Stable debt profile since bond issuance in June 2021 / Proactive management of maturity profile by early refinancing our bond due 2026, €144 m remaining / Revolving credit facility (RCF) prolonged to 2026 and never drawn Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings Senior unsecured bond ESG-linked revolving credit facilities (undrawn) Convertible bond Promissory notes 144 151 500 1,060 23/24 24/25 25/26 72 26/27 27/28 28/29 769 897 - 252 - 812 - 800 - 281 - 798 85 175 1.184 1.483 1.582 Gross financial debt (w/o leases) Cash & cash equivalents Short term financial investments 18/19 19/20 20/21 21/22 22/23 +932 +1,287 +959 -43 +97 Net debt/net liquidity FCF & NWC
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0 200 400 600 800 1,000 1,200 09/ 22 11/ 22 01/ 23 03/ 23 05/ 23 07/ 23 09/ 23 11/ 23 01/ 24 03/ 24 05/ 24 07/ 24 09/ 24 Spread in bp CECONOMY CDS (5Y) Moving Average 50 days Bond Index BB+/BB/BB- (5Y) Strong improvement in credit spread since start of calendar year 2023 102 Credit Default Swap development since September 2022 / Market acknowledgement Track record reflected in continuous reduction of risk perception (credit spread) / Conservative funding of acquisitions Capital increase for full acquisition of MediaMarktSaturn in 2022 Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings / ESG-linked syndicated RCFs Pure back-up line, never been drawn / New bond issued in July 2024 Successful early refinancing of 2026 bond Source: Bloomberg FCF & NWC
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Bond refinancing transaction overview 103Costs Cash & DebtSales & Earnings Business model Market Overview Financials Outlook Capital MarketCompany Overview Credit Ratings New Bond Remainder of 2026 €500 m bond / Proactive management of maturity profile by early refinancing our bond due 2026 / New sustainability-linked bond with maturity in July 2029 and 6.25% coupon / Previous €500 m bond partly repaid via tender offer (acceptance rate at c. 71%), leaving €144 m remaining / Revolving credit facility (RCF) recently prolonged to 2026 – never drawn / Stable net debt/adj. EBITDA ratio of 1.8x (as of June 2024) New financing structure (in €m)1 1Based on September 2024 Senior unsecured bond ESG-linked revolving credit facilities (undrawn) Convertible bond Promissory notes 144 151 500 1,060 72 23/24 24/25 25/26 26/27 27/28 28/29 FCF & NWC
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Prudent financial policy underpinned by much improved leverage ratio 104 1As of 30 September 2023 / Dividend payout restriction Tax-loss carry-forwards prevent dividend payout before 2027 (for FY 2025/26) / Conservative funding of acquisitions Capital increase for full acquisition of MediaMarktSaturn in 2021/22 / Tax-loss carry-forwards Corporate tax losses: €1.2 billion1, Trade tax losses: €1.3 billion1 Reduced tax rate and even negative tax rate in FY 2023/24 / Solid rating position Solid BB rating and further improving credit metrics BB- (outlook: stable) BB (outlook: stable) BBB- (outlook: stable) Credit Ratings Business model Market Overview Financials Outlook Capital MarketCompany Overview CostsSales & Earnings Cash & Debt FCF & NWC
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1. Company Overview 2. Business model deep-dive 3. Market Overview 4. Financials 5. Outlook I. Overview II. Our Progress 6. Capital Market Lucca, Italy
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We updated our outlook twice in FY 2023/24 106 The outlook is adjusted for portfolio changes and does not take into account the earnings effects from companies accounted for using the equity method. Accounting effects of the application of IAS 29 in Türkiye as a hyperinflationary economy are also not taken into account either. It excludes non-recurring effects, particularly in connection with the simplification and digitalisation of central structures and processes or changes to the legal environment. Our ProgressOverview Business model Market Overview Financials Outlook Capital MarketCompany Overview // Moderate increase in currency- and portfolio-adjusted total sales // Adjusted EBIT range of €290 m - €310 m // Improvement in adjusted EBIT primarily driven by Western/Southern Europe // Sales growth primarily driven by Western/Southern and Eastern Europe Before update: “Slight increase […]” Before update: “Clear improvement […]”
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We are on track to reach our mid-term target for FY 25/26 107 1Portugal & Sweden adjusted; 2Excluding associates, pre-IAS 29 and excluding non-recurring effects; 3Adjusted for IFRS 16 leases; 4Compared to base FY 21/22 Key financial figures EBIT increase of c. 150%4 Free Cash Flow increase of c. €700 m4 Adjusted EBIT Gross margin Adjusted OPEX ratio Net Sales Cash Investments Free Cash Flow3 €243 m1 17.9%1,2 17.6%1 €22.2 bn1 €258 m €257 m FY 22/23 >€500 m c. 20% c. 18% Slightly above market growth c. €300 m Steady growth to c. €200 m Growth plan FY 25/26 €290 m - €310 m - - Moderate increase - - Outlook 23/24 Our ProgressOverview Business model Market Overview Financials Outlook Capital MarketCompany Overview
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We continue to make good progress on our CMD KPIs 108Our ProgressOverview Business model Market Overview Financials Outlook Capital MarketCompany Overview Business fields KPI FY 2021/22 FY 2022/23 Target FY 2025/26 Progress Q3 23/24 Retail Core Loyalty members 34 m 39 m 50 m Retail Core Online share 25% 23% c. 30% Retail Core Modernization rate 30% 50% > 90% Retail Core Stock reach progress 10.3 weeks 9.1 weeks (-11%) -10% Space-as-a-service # Lighthouses 5 8 Up to 20 Services & Solutions Income in % of total sales1 4.5% 4.5% c. 5.5% Marketplace GMV €65 m €137 m €750 m Private Label Private Label share 2.3% 2.4% c. 5% Retail Media Income c. €5 m €18 m c. €45 m 1Operational Services & Solutions income in % of total net sales (excluding e.g., Retail Media, Marketplace commissions & fees, deliveries) Update since Q2
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1. Company Overview 2. Business model deep-dive 3. Market Overview 4. Financials 5. Outlook 6. Capital Market I. Share price performance II. Capital allocation & dividends III. Analyst coverage IV. Ownership & Capital structure Carugate, Italy
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CECONOMY outperformed its peer group starting FY 22/231 110 Source: FactSet 1New strategy has been introduced on the Capital Markets Day, 2nd of June, 2023 Analyst coverageCapital allocation OwnershipShare price Business model Market Overview Financials Outlook Capital MarketCompany Overview 70% 120% 170% 220% 270% 320% CECONOMY Fnac Darty Currys
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CECONOMY achieved a total shareholder return of c. 170% since start of FY 22/231 111Analyst coverageCapital allocation OwnershipShare price Business model Market Overview Financials Outlook Capital MarketCompany Overview 70% 120% 170% 220% 270% 320% CECONOMY Germany SDAX (SDAX-XEX) Germany Prime / Retail - SEC (CXPR-XEX) Source: FactSet 1New strategy has been introduced on the Capital Markets Day, 2nd of June, 2023
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Our capital allocation framework 112 Note: Please refer to page 104 for information on dividend payout being barred due to tax carry forward utilisation Business model Market Overview Financials Outlook Capital MarketCompany Overview Analyst coverageCapital allocation OwnershipShare price We aspire to offer attractive dividends When considering potential dividend payouts, we prioritise the need to maintain sufficient capital reserves
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113 1As of June 24 Click here to visit the website Please consult the official CECONOMY Investor Relations website for additional information on the analyst consensus Business model Market Overview Financials Outlook Capital MarketCompany Overview Analyst coverageCapital allocation Ownership Active equity analyst coverage1 Analyst Baader Bank Volker Bosse Barclays Capital Nicolas Champ Bryan Garnier Clément Genelot HSBC Emmanuelle Vigneron KeplerCheuvreux Alessandro Cuglietta M.M. Warburg Research Thilo Kleibauer mwb Research Alexander Zienkowicz Oddo-BHF Andreas Riemann Share price CECONOMY is actively covered by 8 analysts
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CECONOMY shareholder structure1 114 1Voting rights notifications pursuant to sections 33 et. seq WpHG (excl. Instruments) as well as notifications pursuant to Art. 19 EU Market Abuse Regulation (Directors' Dealings) are taken as the basis for the calculations; total number of shares/voting rights: 485,221,084 as of 20.09.2023; 2Free float as defined by Deutsche Börse (German Stock Exchange), https://deutsche-boerse.com/dbg-en/our-company/know-how/glossary/glossary-article/Float- 246568 4.8% 4.2% 27.3% Beisheim Exor Other Investors 11.1% 6.7% 36.3% 29.2% 16.7% Meridian Foundation freenet Free float2 Convergenta/ Kellerhals Familiy Haniel Business model Market Overview Financials Outlook Capital MarketCompany Overview Shareholder structure based on voting rights Analyst coverageCapital allocation OwnershipShare price
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116 116 This presentation is intended for information only, does not constitute a prospectus or similar document and should not be treated as investment advice. It is not intended and should not be construed as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. CECONOMY AG assumes no liability for any claim which may arise from the reproduction, distribution or publication of the presentation (in whole or in part). The third parties whose data is cited in this presentation are neither registered broker-dealers nor financial advisors and the permitted use of any data does not constitute financial advice or recommendations. This presentation contains forecasts, statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data on the Company’s business and markets (together the “market data”) provided by third party sources as interpreted by us. This market data is, in part, derived from published research and additional market studies prepared primarily as a research tool and reflects estimates of market conditions based on research methodologies including primary research, secondary sources and econometric modelling. We want to point out that part of the market data used has been collected in the framework of a market survey carried out as a panel observation. The panel is a regular survey monitoring sales of specific products and product categories, using a range of distribution channels including internet, retail outlets (e.g. high street, mail order) and companies (e.g. resellers). The market data does not represent actual sales figures globally or in any given country; rather, the market data represents a statistical projection of sales in a given territory and is subject to the limitations of statistical error and adjustments at any time (e.g. reworks, changes in panel structure). The representativeness of the market data may be impacted by factors such as product categorisation, channel distribution and supplier universe identification and statistical sampling and extrapolation methodologies. The market data presented is based on statistical methods and extrapolation. In addition, market research data and trend information as interpreted or used by CECONOMY is based on certain estimates and assumptions and there can be no assurance that these estimates and assumptions as well as any interpretation of the relevant information by CECONOMY are accurate. The market research institutes which data CECONOMY used as basis for this presentation are neither registered broker dealers nor financial advisors and the permitted use of any market research data does not constitute financial advice or recommendations. Historical financial information contained in this presentation is mostly based on or derived from the consolidated (interim) financial statements for the respective period. Financial information with respect to the business of MediaMarktSaturn Retail Group is particularly based on or derived from the segment reporting contained in these financial statements. Such financial information is not necessarily indicative for the operational results, the financial position and/or the cash flow of the CECONOMY business on a stand-alone basis neither in the past nor in the future and may, in particular, deviate from any historical financial information based on corresponding combined financial statements with respect to the CECONOMY business. Given the aforementioned uncertainties, (prospective) investors are cautioned not to place undue reliance on any of this information. No representation or warranty is given and no liability is assumed by CECONOMY AG, express or implied, as to the accuracy, correctness or completeness of the information contained in this presentation. This presentation contains certain supplemental financial or operative measures that are not calculated in accordance with IFRS and are therefore considered as non-IFRS measures. We believe that such non- IFRS measures used, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with IFRS, enhance the understanding of our business, results of operations, financial position or cash flows. There are, however, material limitations associated with the use of non-IFRS measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non-IFRS measures used by us may differ from, and not be comparable to, similarly- titled measures used by other companies. Detail information on this topic can be found in CECONOMY’s Annual Report 2022/23, pages 32-35. All numbers shown are as reported, unless otherwise stated. All amounts are stated in million euros (€ million) unless otherwise indicated. Amounts below €0.5 million are rounded and reported as 0. Rounding differences may occur. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral presentation of the slides by representatives of CECONOMY AG, any question-and-answer session that follows the oral presentation, hard copies of the slides as well as any additional materials distributed at, or in connection with this presentation. By attending the meeting (or conference call or video conference) at which the presentation is made, or by reading the written materials included in the presentation, you (i) acknowledge and agree to all of the following restrictions and undertakings, and (ii) acknowledge and confirm that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation. To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. All forward-looking statements herein are based on certain estimates, expectations and assumptions at the time of publication of this presentation and there can be no assurance that these estimates, expectations and assumptions are or will prove to be accurate. Furthermore, the forward-looking statements are subject to risks and uncertainties including (without limitation) future market and economic conditions, the behaviour of other market participants, investments in innovative sales formats, expansion in online and omnichannel sales activities, integration of acquired businesses and achievement of anticipated cost savings and productivity gains, and the actions of public authorities and other third parties, many of which are beyond our control, that could cause actual results, performance or financial position to differ materially from any future results, performance or financial position expressed or implied in this presentation. Accordingly, no representation or warranty (express or implied) is given that such forward-looking statements, including the underlying estimates, expectations and assumptions, are correct or complete. Readers are cautioned not to place reliance on these forward-looking statements. See also "Opportunity and Risk Report" in CECONOMY's most recent Annual Report for risks as of the date of such Annual Report. We do not undertake any obligation to publicly update any forward-looking statements or to conform them to events or circumstances after the date of this presentation. Market Overview Financials Outlook Capital MarketCompany Overview1 3 4 5 6Business model DISCLAIMER AND NOTES
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Store format display: CORE 117 / 972 stores / c. 1,200-3,500sqm / Traditional store format / Mostly located outside of city centers with parking lots / Main target of modernisation program 491 305 176 DACH West/South East Return to page 51 Business model Market Overview Financials Outlook Capital MarketCompany Overview1 2 3 4 5 6 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars Note: As of 30 June 2024
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Store format display: SMART 118 / 8 stores / 70-500sqm / Smallest store format / Focus on delivering services and offering supplementary products 1 7 DACH West/South Return to page 51 Business model Market Overview Financials Outlook Capital MarketCompany Overview1 2 3 4 5 6 Note: As of 30 June 2024 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Store format display: Lighthouse 119 / 7 stores / >4,000sqm / Extensive presentation space / Leveraging the full potential of our SaaS services / Flagship stores to promote MMS branding 2 4 1 DACH West/South East Return to page 52 Business model Market Overview Financials Outlook Capital MarketCompany Overview1 2 3 4 5 6 Note: As of 30 June 2024 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars
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Store format display: XPRESS 120 / 33 stores / c. 400-1,100sqm / Accommodation of customers’ needs in urban- central areas / Smaller assortment and store size with integration of online offering and advisory 24 6 3 DACH West/South East Return to page 52 Business model Market Overview Financials Outlook Capital MarketCompany Overview1 2 3 4 5 6 Note: As of 30 June 2024 Retail Core & SaaS Marketplace Private Label Retail Media Services & Solutions Strategic Pillars