3i Group Plc · LSE:III
3i — Investor Day (March 2024)
87 slides from 3i's investor day presentation, Mar 21, 2024
Slide 1: 3i Action Capital Markets Seminar
3i Action Capital Markets Seminar 21 March 2024 2024 1st store in Portugal
Slide 2: Agenda
Agenda 10.00-12.00 Action’s results and strategy Simon Borrows Q&A Chief Executive, 3i Hajir Hajji Chief Executive, Action Joost Sliepenbeek CFO, Action 12.30-13.15 Action Sustainability Programme Hajir Hajji Q&A Chief Executive, Action Tjeerd Bartels Head of Sustainability, Action Karl Knight Head
Slide 3: Action's exceptional track record of growth continued in 2023
Action’s exceptional track record of growth continued in 2023 Net sales1 (€m) 11,324 Initial investment 8,859 +24% CAGR 6,834 5,114 5,637 4,216 3,418 2,675 1,506 2,034 607 718 873 1,155 231 284 341 426 515 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 4: Action continues to outperform its peers
Action continues to outperform its peers Performance over last five years LfL growth average Store CAGR Net sales CAGR EBITDA CAGR +187% 29% +86% 22% +6p.p. 14% +5p.p. 12% 10% 10% 8% 5% Peers average Peers average Peers average Peers average Source: CapIQ. Peers include B&M, Costco, Dollarama, Dolla
Slide 5: Exceptional performance drives value for 3i shareholders
Exceptional performance drives value for 3i shareholders Action – 3i carrying value, £m1 ~£760m capital proceeds Distributions, £m2 £59m £113m £168m £187m £307m £402m £288m £328m £951m 3 Q3 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Exceptional value growth and ~£2.8bn cumulati
Slide 6: Today's presenters
Today’s presenters Hajir Hajji Joost Sliepenbeek Chief Executive Officer Chief Financial Officer Joined in September 1997 Joined in November 2018 Held variety of management positions at Action 25 years of Consumer & Retail experience Commercial Director (2018 – 2021) 36 years experience in finance,
Slide 7: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2023 Joost Sliepenbeek 5. Trading update Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2024 | Action 7
Slide 8: 3i Capital Markets Seminar 2024 | Action
3i Capital Markets Seminar 2024 | Action 8
Slide 9: 2023 marked the 30th year of Action and the first €10+ billion sales year
2023 marked the 30th year of Action and the first €10+ billion sales year €11.3 +16.7% €1,615 303 104% Billion Like-for- Million Net stores Cash net sales Like sales operating added conversion growth EBITDA +28% +34% 3i Capital Markets Seminar 2024 | Action 9
Slide 10: We adapt in response to changing times and customer needs
We adapt in response to changing times and customer needs, using the flexibility of our formula and assortment Pandemic Global supply Inflation rises Energy price Global conflict chain crisis increase 2020 2022 +23% +28% +9% +30% 2021 2023 +XX% % annual net sales growth1) 1) 52-week basis 3i Capital
Slide 11: Key drivers contributing to our 2023 performance
Key drivers contributing to our 2023 performance EXPANSION FOCUS ON DAILY LOW PRICES AND NECESSITIES PRICE REDUCTION 3i Capital Markets Seminar 2024 | Action 11
Slide 12: We have a strong price position versus competitors
We have a strong price position versus competitors Price index1) versus competitors by country 187 186 181 180 179 179 178 177 176 175 175 173 170 168 164 163 156 155 100 100 100 100 100 100 100 100 100 Netherlands Belgium Germany France Austria Poland Czechia Italy Spain Action Competitors Q4 2022
Slide 13: Strong performance across all categories
Strong performance across all categories 2023 Like-for-Like growth by category Our categories 16.7% 1 2 3 Food Do It Stationery Household Laundry 4 & Drink Yourself & Hobby Goods & Cleaning 5 6 7 8 9 Personal Garden & Toys & Pets Decoration 10 Care Outdoor Entertainment 11 12 13 14 Linen Clothing He
Slide 14: Disciplined pricing and cost control enabled us to manage inflation
Disciplined pricing and cost control enabled us to manage the impact of inflation Price and Cost discipline Strong supply Scale benefits assortment chain management performance 3i Capital Markets Seminar 2024 | Action 14
Slide 15: We added 303 stores across Europe
We added 303 stores across Europe +6 414 322 526 +45 +66 +6 215 63 +19 15 11 +15 2,566 stores at the end of 2023 108 799 +13 +73 +303 stores added vs. 2022 Record number of store openings 67 +39 26 +21 # of stores at the end of 2023 Stores added in 2023 3i Capital Markets Seminar 2024 | Action 15
Slide 16: We have expanded our footprint in urban areas
In the past years, we have expanded our footprint in urban areas, yet there are still significant opportunities for growth 2017 2023 Stores / million people1) Île-de-France Île-de-France 39 stores 94 stores 8 + 55 stores 2017 2023 Brussels Brussels 5 stores 12 stores 10 + 7 stores 1) At the end of 2
Slide 17: We maintain and modernise our stores
We continue to maintain and modernise our stores to stay relevant for our customers Relocation store Purmerend Before Enlargements Refurbishments After Relocations 3i Capital Markets Seminar 2024 | Action 17
Slide 18: Recently opened countries delivered a strong performance
Recently opened countries delivered a strong performance Italy Spain Slovakia Portugal DC Labastide, France DC Altedo, DC Labastide, Italy France DC Belleville, France DC Illescas, Spain DC Bratislava, Slovakia DC Illescas, Spain Presence at the end of 2023 Search areas for 2024 openings Planned DCs
Slide 19: Progress with our Action Sustainability Programme in 2023
We made significant progress with our Action Sustainability Programme in 2023 People Planet 3,183 46% carbon emissions reduction on colleagues promoted scope 1 & 2 vs. baseline 2021 8,988 150 owned trucks are driving on HVO new jobs created (hydrated vegetable oil) >65,000 25,821t CO2e training part
Slide 20: Our success is based on our engaged teams
Our success is based on our engaged teams 155 72% nationalities 28% 8,988 69,040 new jobs colleagues1) 3,183 promotions 94% response rate >65,000 training participants 1) Internal colleagues only – excludes contractors and other business partners 3i Capital Markets Seminar 2024 | Action 20
Slide 21: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2023 Joost Sliepenbeek 5. Trading update Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2024 | Action 21
Slide 22: Action's strategy remains simple and consistent
Action’s strategy remains simple and consistent Strengthen our Drive international unique customer value geographic expansion proposition Maintain a simple, efficient and scalable operating model Make sustainability accessible Treasure our people and values 3i Capital Markets Seminar 2024 | Action 2
Slide 23: Flexibility and simplicity enable scaling at low cost
Flexibility and simplicity enable scaling at low cost Big volume No fixed No high street Efficient purchases assortment locations logistics Simple business Standardised Low overhead Low marketing model store processes costs expenditure 3i Capital Markets Seminar 2024 | Action 23
Slide 24: Action offers an assortment of 14 complementary categories
Action offers an assortment of 14 complementary categories ~6,000 items across 14 categories Award-winning products Food Do It Stationery Household Laundry & Drink Yourself & Hobby Goods & Cleaning Personal Garden & Toys & Pets Decoration Care Outdoor Entertainment Ziki socks Max & More Superfinn 3-
Slide 25: Customers can find new products at every visit
Customers can find new products at every visit Surprising assortment Low price points1) Spargo microfibre cloths 34% 33% ~1/3 €1.99 fixed 25% Bites for birds 8% ~2/3 non-fixed €1.49 €0-1 €1-2 €2-5 >€5 Primary offering Assortment 150 new articles each week Main focus on items below €2 Note: Dutch pro
Slide 26: Investment in our private label offering results in award-winning products
Investment in our private label offering results in award-winning products € 30,60/l Superfinn cleaner Zenova sunmilk Mini Matters food set Hotel Royal towel Best buy 2023 Consumer Green choice 2023 Consumer Favourite product award 2023 in Best product of the year Association Netherlands Association
Slide 27: Action's brand and formula appeal to everyone
Action’s brand and formula appeal to everyone Customers that visited Action stores Gender Age Education1) Income1) 38% 43% 24% 33% 31% 34% 36% 62% 33% 36% 30% 18-34 35-49 50+ low middle high low middle high Source: GfK report June 2023 1) Survey results from CZ, IT, ES & SK are excluded due to relat
Slide 28: Our brand proposition is appreciated across countries
Our brand proposition is appreciated across countries 95% Brand awareness1) 80% 75% 63% 68% 63% 54% 49% Penetration1)2) 40% 43% 31% 31% 27% 19% 23% 21% 13% 8% NL FR BE AT PL DE CZ IT ES Selection of 2023 prizes awarded by customers Most popular non- food retailer 1) For all countries the % applies t
Slide 29: Our sourcing mix is essential to our customer proposition
Our sourcing mix is essential to our customer proposition Importers and Stocklot traders A-brands wholesalers Direct sourcing Drive quality perception Essential to customer Enables low price and Essential for low price and traffic proposition for newness newness proposition and treasure hunt and sea
Slide 30: Strong touchpoints in place to drive store traffic
We have strong touchpoints in place to drive store traffic Research online, purchase offline customer journey Digital Website Email Store marketing Offline App and Social E-commerce media loyalty media 3i Capital Markets Seminar 2024 | Action 30
Slide 31: Longer-term ambitions across four pillars of Action Sustainability Programme
Our longer-term ambitions and objectives across the four pillars of our Action Sustainability Programme The Action Sustainability Programme is guided by the UN Sustainable Development Goals People Planet Provide training and growth opportunities for Reduce emissions from own operations by 60% our em
Slide 32: Action's entry strategy has been able to adapt to different markets
Action's entry strategy has been able to adapt to different markets Pilot phase (2009) 2016 2023 1 store 136 stores 526 stores + 135 stores + 390 stores Pilot phase (2017) 2020 2023 6 stores 101 stores 322 stores + 95 stores + 221 stores Distribution centre 3i Capital Markets Seminar 2024 | Action 3
Slide 33: Current markets include a number of growth engines
Current markets include a number of growth engines Stores per # stores end Entry year million people1) of 2023 More mature 23 Netherlands 414 1993 countries 18 Belgium 215 2005 17 Luxembourg 11 2015 12 France 799 2012 12 Austria 108 2015 9 Poland 322 2017 6 526 2,566 Germany 2009 6 Czechia 63 2020 3
Slide 34: Significant further growth opportunities across Europe
Both existing and new markets show significant further growth opportunities across Europe 422m 83m Population in millions 30 68 84 63 59 48 10 64 % of store potential Total of 2,566 stores at the end of 2023 Benelux FR DE CE1) IT ES PT In-scope2) Not currently in-scope Current estimate of additional
Slide 35: Building our distribution network further to support growth
We are building our distribution network further to support our growth Existing DCs Zakroczym, PL Planned DCs1) Zwaagdijk-Oost, NL Peine, DE Wrocław, PL Hubs Echt, NL Osła, PL Bieruń, PL Le Havre, FR Wallersdorf, DE – 2025 Bratislava, SK Moissy, FR Biblis, DE Verrières-en-Anjou, FR Belleville, FR Al
Slide 36: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2023 2022 Joost Sliepenbeek 5. Trading update Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2024 | Action 36
Slide 37: Our repeatable financial model remains unchanged
Our repeatable financial model remains unchanged 1 2 Fast moving and flexible assortment New store roll-out and country expansion Consistent gross margin across Clear value Superior store categories drivers LfL sales growth economics All stores are profitable EBITDA margin High sales density 3 4 Pro
Slide 38: Financial performance was again strong in 2023
Financial performance was again strong in 2023 The reason is simple… … and the economics are extremely attractive 1 <1 year average historical payback on One single and successful format new store CAPEX 2 Proven to travel across borders All stores are profitable1) 3 First class store opening teams a
Slide 39: Strong sales and EBITDA growth in 2023
Strong sales and EBITDA growth in 2023 Net sales (€m) Operating EBITDA (€m) +28% +34% +20% +28% CAGR 11,324 1,615 CAGR 8,859 1,205 6,834 5,114 5,569 828 4,216 609 541 450 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 EBITDA margin (%) 10.7 10.6 10.9 12.1 13.6 14.3 All financials in thi
Slide 40: 2023 LfL growth mainly driven by increase in transactions
2023 LfL growth mainly driven by increase in transactions 2023 LfL growth was significantly above 2019-2022 average (+8.3%) 18.1% 16.7% Transaction volumes accounted for ~89% of the LfL increase over the year 11.0% Ø +8.3% 5.6% (1.4%) 2019 2020 2021 2022 2023 Normalised like-for-like growth % for ye
Slide 41: Strong LfL performance in all quarters
Strong LfL performance in all quarters 27.7% 24.3% 23.4% 19.5% 19.3% 18.1% 16.7% 14.5% 11.8% 10.9% 10.9% 11.4% 9.7% 6.4% (0.7%) Q1 Q2 Q3 Q4 FY Strong growth in the Relative strong Growth mainly driven Continuation of the number of transactions performance of FMCG by volume. First price translation o
Slide 42: Continued strong sales growth in all countries
Continued strong sales growth in all countries Sales growth by country – stores opened before 2019 and only for periods opened with full assortment 75.1% 50.1% 46.9% 46.3% 41.8% 36.5% 37.3% 36.1% 26.4% 29.2% 29.1% 21.9% 20.7% 23.0% 22.9% 25.3% 19.6% 14.9% Netherlands Belgium1) Germany France Austria
Slide 43: Store expansion: another record year
Store expansion: another record year Store opening development by country1) 308 282 15 269 5 21 7 21 232 230 16 23 39 19 32 19 20 74 16 164 81 66 5 11 89 15 13 93 44 15 94 74 75 42 72 59 42 46 46 46 19 18 8 13 9 13 12 8 8 8 8 6 2018 2019 2020 2021 2022 2023 Netherlands BeLux Germany France Austria P
Slide 44: Good margins across all categories
Good margins across all categories Gross margin by category (%) – 2023 Total gross margin: 40.2% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 3i Capital Markets Seminar 2024 | Action 44
Slide 45: Good operating leverage in all countries
Good operating leverage in all countries Store contribution margin1) 2023 versus 2019 (based on stores opened before 2019) 2019 2023 +180bps +310bps +650bps +270bps +180bps +390bps +620bps Netherlands Belgium 2) Germany France Austria Poland Total # of stores 373 172 288 423 38 25 1,319 1) Store con
Slide 46: All mature stores are profitable
All mature stores are profitable Store contribution (€k) and store contribution margins (%)¹)²) Average store contribution margin: 24% Store contribution margin % Store contribution 2023 Mature stores – ordered high to low store contribution Store contribution (in €k) by store Store contribution mar
Slide 47: Attractive payback periods for new stores
Attractive payback periods for new stores Historical average payback of stores Rapid sales ramp-up post-opening Amounts in €m Real estate discipline driving low 4.4m rental costs Individual store payback varies depending on size of store and geography ~+0.7m <1 year payback period ~(0.5)m Upfront Sa
Slide 48: Scale effects increasingly benefit margins
Scale effects increasingly benefit margins Proportion of sales with store contribution margin1) Supply chain costs >20% as % of net sales 2019 2022 2023 2019 5.9% €5.1bn €8.9bn €11.3bn 2022 5.2% 2023 5.0% Net sales with >20% store contribution margin Net sales with <20% store contribution margin 1)
Slide 49: EBITDA margin improved mainly as a result of operating leverage
EBITDA margin improved mainly as a result of operating leverage EBITDA margin development 1.7% 14.3% 0.1% 13.6% 0.4% (1.5%) Wages Housing Other 2022 Gross margin%¹) Operating leverage Cost inflation Other 2023 1) Including margin adjustments 3i Capital Markets Seminar 2024 | Action 49
Slide 50: Strong improvement in profitability per square metre
Strong improvement in profitability per square metre Net sales / square metre (€)¹)) Operating EBITDA / square metre (€)¹)) +5% +11% CAGR +13% +18% CAGR ~5,540 ~790 ~4,910 ~670 ~4,050 ~430 2018 2022 2023 2018 2022 2023 1) Based on the average number of stores during the year 3i Capital Markets Semin
Slide 51: Continued investment in our expansion
Continued investment in our expansion CAPEX development (€m) +26% +25% 260 230 199 210 183 173 66 36 46 26 37 9 26 45 37 30 168 105 117 135 98 71 (15) (26) 1) 1) 2018 2019 2020 2021 2022 2023 As % of 4.7 4.1 3.1 2.7 2.6 2.3 net sales Store expansion3) New DCs 3) Technology Store maintenance / RERs2)
Slide 52: Strong cash flow: 2023 cash conversion of 104%
Strong cash flow: 2023 cash conversion of 104% Cash conversion (€m and % of operating EBITDA) 1,800 1,685 125 1,600 104% Operating cash flows positively 93% 100 impacted by low ending inventory in 1,400 2023 and sale and leaseback of DC 1,200 71% 78% 69% Verrières-en-Anjou 75 1,000 64% 938 770 Cash
Slide 53: Successful $1.5bn USD TLB issuance
Successful $1.5bn USD TLB issuance Transaction overview Size $1.5bn Pricing 325bps margin Leverage Maturity 2030 P9 2023 EOY Senior debt¹) €3,125m €4,544m Fully hedged back to Euro Cost 70% fixed at an all-in Euro cost of 6.3% Cash and cash €941m €1,087m equivalents BB stable (upgraded) – S&P Rating
Slide 54: Overview of high-level financials
Overview of high-level financials Change 2021 2022 2023 (vs 2022) Net sales (€m) 6,834 8,859 11,324 +27.8% LfL sales growth (reported) 11.0% 18.1% 16.7% Operating EBITDA (€m) 828 1,205 1,615 +34.0% EBITDA margin 12.1% 13.6% 14.3% Cash conversion1) 93% 78% 104% Number of stores (end of year) 1,983 2,
Slide 55: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2023 Joost Sliepenbeek 5. Trading update Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2024 | Action 55
Slide 56: Current trading 2024: very strong start of the year
Current trading 2024: very strong start of the year Net sales to week 11 (€m) +21% Sales growth of 21% versus same period in 2023 2,521 9.6% LfL sales growth for the first 11 weeks of 2024 2,090 2024 store expansion plan on track with 32 stores added year-to-date Cash and cash equivalents at €1.1bn
Slide 57: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2022 Joost Sliepenbeek 5. Trading update Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2024 | Action 57
Slide 58: Impressive growth in Action's footprint over the last 5 years
Impressive growth in Action’s footprint over the last 5 years 2018 2023 Countries 7 +4 11 Stores 1,325 ~2x 2,566 DCs1 5 +11 16 1 The number of DCs in 2023 includes three Hubs. 58
Slide 59: Scale has supported exceptional growth in unit economics
Scale has supported exceptional growth in unit economics 2018 2023 ~€5,540 ~€4,050 +37% net sales per sqm1 ~€790 ~€430 +83% operating EBITDA per sqm1 Store payback now less than 12 months 1 Based on the average number of stores during the year. 59
Slide 60: Action has significantly outperformed its 2019 business plan
Action has significantly outperformed its 2019 business plan Net sales1, €bn 5Y actual 5Y target (2019 plan)2 2.7x 2.1x Operating EBITDA1, €m 5Y actual 5Y target (2019 plan)2 3.6x >2x Actuals 2019 Business Plan 1 Including impact of 53rd week. 2 2019 plan based on 2018 starting actual numbers. 60
Slide 61: Continued strong growth trajectory over the next 3 years
Continued strong growth trajectory over the next 3 years 4-year targets communicated in 2023 CMD Outlook Guidance unchanged Store openings1 1,300 1,400 (2023 – 303 added) Mid High Guidance unchanged Average Like-for-Like single digits single digits Possible upside in 2024 4-year target communicated
Slide 62: Action performs in line with best-in-class retailers, with long growth runway
Action continues to perform in line with best-in-class retailers, with a long growth runway ahead Top-line growth since €1bn/$1bn sales (20 years window, rebased to 100) 2,750 2,500 2,250 2013-2023 2,000 1,750 1,500 1,250 1,000 750 500 250 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years aft
Slide 63: Agenda
Agenda 10.00-12.00 Action’s results and strategy Simon Borrows Q&A Chief Executive, 3i Hajir Hajji Chief Executive, Action Joost Sliepenbeek CFO, Action 12.30-13.15 Action Sustainability Programme Hajir Hajji Q&A Chief Executive, Action Tjeerd Bartels Head of Sustainability, Action Karl Knight Head
Slide 64: 3i provides long-term capital backing and strong governance
3i provides long-term capital backing and strong governance Governance Long-term vision 3i provides active and responsible governance with a 3i brings an ambitious, growth-orientated long term focus on the ASR agenda mindset to Action Investment Values Prioritisation of investment in Action’s infras
Slide 65: Thank you
Thank you For your attention!
Slide 66: Appendix: impact of IFRS16 on Action 2023 financials
Appendix: impact of IFRS16 on Action 2023 financials Income statement1) Balance sheet1) Excluding Including IFRS 16 Excluding Including IFRS 16 In €m IFRS 16 IFRS 16 impact In €m IFRS 16 IFRS 16 impact Operating EBITDA 1,615 1,939 +324 Non-current assets 1,411 1,417 +6 Adjusting items (4) (4) - Righ
Slide 67: Action Sustainability Programme Update
Action Sustainability Programme Update 21 March 2024
Slide 68: Today's presenters
Today’s presenters Hajir Hajji Tjeerd Bartels Karl Knight CEO Head of Head of Product Sustainability Quality & Sustainability Joined in September 1997 Joined in January 2012 Joined in December 2016 Held variety of management positions at Action Key responsibilities Key responsibilities Commercial Di
Slide 69: Agenda
Agenda 1. Introduction Hajir Hajji 2. People, Partnership and Planet Tjeerd Bartels 3. Product Karl Knight 4. Q&A All Action Sustainability Programme 69
Slide 70: Action's strategy remains simple and consistent
Action’s strategy remains simple and consistent Strengthen our Drive international unique customer value geographic expansion proposition Maintain a simple, efficient and scalable operating model Make sustainability accessible Treasure our people and values Action Sustainability Programme 70
Slide 71: Focus areas of the Action Sustainability Programme
Focus areas of the Action Sustainability Programme The ASP is guided by the UN Sustainable Development Goals People Planet Product Partnerships Action Sustainability Programme 71
Slide 72: Action Sustainability Programme Governance
Action Sustainability Programme Governance ASP led by the CEO while maintaining close alignment with the board Governance ASP Committee The ASP Committee approves the sustainability Sustainability aspirations are widely integrated strategy and targets, and tracks progress. The within the company Com
Slide 73: Agenda
Agenda 1. Introduction Hajir Hajji 2. People, BusinessPartnership performance update and Planet Hajir Hajji Tjeerd Bartels 3. Product Karl Knight 4. Q&A All Action Sustainability Programme 73
Slide 74: People | People are proud to work for Action
People | People are proud to work for Action Action offers employment and attractive career opportunities to a growing number of people across Europe Store Foster the development and Management Management internal promotions of employees 72% 74% 35% Women Women Women 28% 26% 65% Men Men Men Care for
Slide 75: Partnership | Action is a responsible partner to society and communities
Partnership | Action is a responsible partner to society and communities We work with partners to support our ambition that every child should be able to develop in a safe and loving environment and where the following basic needs are met: health, housing and education Our contribution increases as
Slide 76: Planet | Reduce GHG emissions across the value chain
Planet | Reduce GHG emissions across the value chain We have clear visibility and plans on scope 1 & 2, and have started developing our strategy for scope 3 “Scope 3” “Scope 1” (direct) “Scope 2” (indirect) “Scope 3” Emissions in Action’s value chain From burning of From purchased Emissions in Actio
Slide 77: Planet | Reduce our scope 1 and 2 GHG emissions
Planet | Reduce our scope 1 and 2 GHG emissions We are committed to reducing our scope 1 & 2 GHG emissions by 60% by 2030 vs. 2021 baseline Distribution centres Solar panels installed at 2 more DCs, bringing the total number to 7 Renewable energy generated equates to ~63% of total energy usage of al
Slide 78: Planet | Reduce our scope 3 GHG emissions
Planet | Reduce our scope 3 GHG emissions We have started developing our scope 3 emission strategy, including a baseline calculation, commitment to SBTi and first reduction initiatives 1 Baseline calculation 2 Commitment 3 Intermediate actions 4 Next steps In 2023 we performed a On March 4, 2024 we
Slide 79: Agenda
Agenda 1. Introduction Hajir Hajji 2. People, Partnerships and Planet Tjeerd Bartels 3. Product Karl Knight 4. Q&A All Action Sustainability Programme 79
Slide 80: Product | Delivering a 100% transparent supplier base
Product | Delivering a 100% transparent supplier base A transparent supply chain is the foundation that we build all other commitments on Supplier base – 2023 status Product origin1) Suppliers Factories Countries Europe 686 3,054 53 45% Final manufacturing factory (tier 1) is our first priority - we
Slide 81: Product | Sustainable sourcing and production
Product | Sustainable sourcing and production Clear policy and commitments towards sourcing sustainable raw materials Cotton Timber 100% sustainably sourced 95% sustainably sourced Ranked among top 25 global On track to deliver 100% by end of purchasers of sustainable cotton1) 2024 Since adoption: M
Slide 82: Product | We embed the circularity philosophy
Product | We embed the circularity philosophy We are committed to make improvements every year Our achievements and objectives Circularity plans in place in all categories1) ACTION HOUSEHOLD We delivered circular improvements of +4.85% across all SCAN categories in 2023 Committed to embed circular d
Slide 83: Action Sustainability Programme
Action Sustainability Programme 83
Slide 84: Product | Working towards sustainable packaging
Product | Working towards sustainable packaging Three primary commitments to improve our packaging footprint Commitments Examples of packaging successes Reduction From glass to plastic Saving 619,000kg Action will reduce primary packaging weight used for fixed assortment by 25% by 2025 vs. 2019 (rel
Slide 85: Agenda
Agenda 1. Introduction Hajir Hajji 2. People, Partnership and Planet Tjeerd Bartels 3. Product Karl Knight 4. Q&A All Action Sustainability Programme 85
Slide 86: Q&A
Q&A
Slide 87: Thank you
Thank you For your attention!