Ceconomy (CEC) Investor Presentation summary

Market position and business model

• Holds #1 or #2 market position in 9 of 11 European countries, with €22.4bn in FY 23/24 sales and a strong omnichannel presence.

• Diversified across regions and product categories, with DACH region contributing 53% of sales and IT/phones/wearables at 27%.

• Growth businesses (Services & Solutions, Marketplace, Private Label, Retail Media) now account for 32% of gross profit.

• Strategic investments include a 22% stake in Fnac Darty and minority stakes in other European retailers.

• Ongoing transformation from a traditional retailer to a customer-centric service platform, with centralised operations and simplified governance.

Financial performance and outlook

• FY 23/24 sales reached €22.4bn (+5.3% YoY), with adjusted EBIT at €305m and FCF at €119m.

• Online sales were ~€5bn, representing 23.6% of total sales, with a target of c.30% by FY 25/26.

• Gross margin improved to 18.0% in FY 23/24, with a target of c.20% by FY 25/26.

• Guidance for FY 24/25 anticipates a moderate increase in sales and a clear increase in adjusted EBIT, driven by DACH and Western/Southern Europe.

• Leverage ratio improved to 1.7x, with a stable BB credit rating and no major debt repayments before 2028/29.

Strategic initiatives and KPIs

• Loyalty program members grew to 43m, targeting 50m by FY 25/26; sales with loyalty members in Germany rose to €2.9bn.

• Store modernisation rate reached 64%, aiming for >90% by FY 25/26, with 11 Lighthouse stores and 40 Xpress stores.

• Marketplace GMV increased to €277m, targeting €750m by FY 25/26, with 1,600 vendors and 2m SKUs.

• Private Label share rose to 2.7% of sales, with a target of c.5% by FY 25/26, focusing on value, quality, and design.

• Retail Media income reached €48m, with a target of c.€45m for FY 25/26, and new product launches planned.