Cnova NV — H1 2022 Earnings Presentation
26 slides from Cnova NV's earnings presentation, Jul 28, 2022
Slide 1: Activity & Financial Performance First Half 2022
Activity & Financial Performance Nn Ova First Half 2022 July 28th, 2022
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. Such forward-looking statements may generally be identified by, but not limited to, words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,”
Slide 3: Business Highlights & Key Figures
BUSINESS HIGHLIGHTS & KEY FIGURES discount
Slide 4: Business highlights and key figures
and Key figures ent performance Challenging & uncertain market Consumption was very high during the pandemic Lower demand Lockdowns in China disrupting supply chains Strong inflation impacting purchasing power War in Ukraine High uncertainty CC —E—— EE — Resilient performance of the B2C platform and
Slide 5: Resilient Ecommerce Platform
RESILIENT ECOMMERCE PLATFORM discount
Slide 6: Marketplace long-term trends remain dynamic
Marketplace Marketplace long-term trends remain dynamic d Marketplace GMV growing +8% annually on a LT trend Marketplace share increasing +3pts per year on a LT trend pite last semester headwinds inێm in % of total +3.2pts per year CAGR 747 +8% 42.7% 676 668 38.3% 562 33.4% 34.4% 505 466 : 1H17 1H1
Slide 7: Strategic shifts towards the marketplace
Marketplace Strategic shifts towards the marketplace supported by the increase in express delivery share and NPS Express delivery share steadily increasing Marketplace NPS steadily improving! 60% 50% 13% 40% 30% 20% 10% 0% 2017 2018 2019 2020 2021 1H22 2017 2018 2019 2020 2021 1H22 Fulfillment by Cd
Slide 8: Direct sales and top brands relationship
Direct Sales Direct sales benefiting from strengthened relationship with top brands on technical goods Reinforced relationship with Top brands Building a win-win partnership * TOP 10 brands: €250m GMV in 1H22 (-9% vs. 1H21) . ee 1 +10pts vs electronics market evolution in 1Q22' For Cdiscount For the
Slide 9: Services: strong rebound of Travel activity
Services Strong rebound of Travel ac y Travel GMV evol Travel activity grew by 67% YTD Iin€m +67% i ae Flights (+51% vs. 1H21) > Borders reopening of Northern African countries >» Fewer COVID constraints > Top 6 destinations contributed to 70% of GMV Holidays Packages (+146% vs. 1H21) > New partners
Slide 10: User experience: growing loyal customer base
User experience Growing loyal customer base thanks to Express delivery, promotions and “Yes to the client” policy # of Cdiscount a Volonté loyal customer: SKUs eligible to express delivery —s (432% 7 End 1H21 End 1H22 Dedicated promotions to CDAV members flew QUE POUR Les MewaRes Cdiscount In millio
Slide 11: Customer-centric approach with AI-powered algorithms
er experience mprove the customer-centric approach with Al-powered algorith Search engine powered by Al Greater UX personalization powered by Al Y-o-y evolution of share of Cdiscount.com Y-o-y evolution of share of personnalized search engine in GMV recommendations in GMV Cnova n
Slide 12: Advertising services driven by Cdiscount Ads Retail Solution
es driven by Cdiscount Ads Retail Solution (CARS) Advertising services revenue growth A success for Cdiscount and for our merchants inem Q Advertising services growing fast: +15% vs 1H21, el 33 driven by sponsored products CARS discount Ads Retail Solution +73% y-o-y Q Improvement of sponsored produ
Slide 13: B2B Activities
B2B ACTIVITIES discount
Slide 14: B2B activities: C-Logistics
B2B acti ies C-Logistics leader in e-commerce supply chain 7 Full service of supply Turnkey transport solution Log istics e-commerce operations for large parcels 4 clients signed (+1 vs. 2021 year-end) 49 clients signed (+30 vs. 2021 year-end) STOKOMANI la Sommelitre Emma’ A differentiating end-to-e
Slide 15: Octopia accelerated with clients signed since launch
Octopia accelerated with 23 clients signed since its launch Marketplace-as: Service and Fulfillment-as e solutions are accelera octopia > Access to marketplace tech solution > Access to merchants > Access to fulfilment solutions NEL ayetas powered by OCtopia Q Develop marketplaces and bring merchant
Slide 16: ESG
ESG discount
Slide 17: ESG
ESG Cnova acting for atives towards environmental responsi Staya pioneer in responsible logistics Delivery & Packaging GHG emissions decreased by -7% per parcel in 2021 vs. 2020 Deliveries and returns already carbon neutral on Cdiscount.com Unique fleet of six 3D packing machines to wrap parcels wit
Slide 18: Half-Year 2022 Financial Performance
HALF-YEAR 2022 FINANCIAL PERFORMANCE discount
Slide 19: Half-year 2022 Financial performance: GMV
Half-year 2022 Financial performance 10% GMV decrease in a receding market but very well-oriented strategic pillars vs. pre-pandemic level J vs. pre- Direct sales -21% -25% Marketplace 747 668 1% +19% B2C_ B2C Services 128 150 +17% +62% x2 1H22 Advertising services 35 40 +15% x2 GMV Other 162 197 +2
Slide 20: Gross margin improvement year after year
Half-year 2022 | performance Gross margin improvement year after yea Gross margin (% of Net sale +5.3pts over 2y J 23.2% 22.8% 17.5% 1H19 1H21 1H22 marketplace and Advertising services Aslight decrease of -0.4pt in gross margin vs. 2021 but a +5.3 pts vs pre-pandemic 1H19 : Gross margin increase ove
Slide 21: SG&A performance
jal performance 1H22 thanks to = SG&A accounted for €184.4m in H1 2022, decreasing by -1% vs. 2021 v Fulfilment (€63m; -10% vs. 2021): positively impacted by lower volume in H1 for its variable part and first benefits from the Efficiency Plan for its fixed part 2.4% 24.6 2.8% 24.4 v Marketing (€52m;
Slide 22: EBITDA & EBIT impacted by market headwinds
Half-year 2022 | performance EBITDA & EBIT impacted by significant market headwinds = EBITDA decreased to +€17m compared to last EBITDA EBIT year (1.9% of Net sales; -3.0 pts vs. 1H21) Y Facing adverse market conditions 49.4 a Y Destocking initiatives Offset by Vv Increased advertising services 6.5
Slide 23: Free cash flow
• Change In €m, over a six-months period 1H22 1H21 vs LY EBITDA +17 +49 (32) • Cash rents (18) (17) (1) Other operating expenses cash (6) (3) (3) ✓ FCF from operating activities inc. Rents (7) +30 (37) Change in working capital (65) (180) +114 o/w inventories impact +86 (26) +112 ✓ Net CAPEX (27) (5
Slide 24: Net financial debt breakdown & maturity
Half-year 2022 Financial performance Net financial debt breakdown & maturity Net Financial Debt Breakdown Repayment schedule Zz 51 279 60 30 18 6 5 Gross Debt Cash,, Net Financial 2022 2023 2024 2025 2026 Debt = Cash net of bank overdrafts Other financial liabilities State guaranteed loan ™ Account
Slide 25: Strategic Outlook: Efficiency Plan
STRATEGIC OUTLOOK: EFFICIENCY PLAN discount
Slide 26: Financial update: €75m Efficiency Plan
Financial update Implementing a €75m (Full-year) Efficiency Plan to recalibrate SG&A & CAPEX While being committed to our 3 strategic pillars Grow the Marketplace more sellers, more fulfilment, better customer satisfaction Boost Advertising Services leveraging on Cnova unique in-house self-service p