30
HALF-YEAR RESULTS 2017/2018 DECEMBER 2017
HALF-YEAR RESULTS2017/2018
DECEMBER 2017
2
NO. 1 FRENCH ONLINE HIGH-TECH BRAND AND LEADER IN
OMNICHANNEL RETAILING
€479,9M
2017/18
revenues
Over 700
employees
12brands including
7 commercial
websites
4countries covered:
France / Belgium / Luxembourg / Switzerland
39,000 m²
dedicated
logistics platform
27
LDLC.COM
stores
(at 01/12/2017)
1 700
high-tech brand
partners
50,000
catalogued
products
First half 2017/2018(1 April – 30 September)
RESULTSANALYSIS
4
▪ HIGH-TECH BUSIENSS DISRUPTED BY CONTINUED SURGE IN MEMORY COMPONENT
PRICES (MEMORY MODULES AND SSDS)
▪ RETURN TO DYNAMIC GROWTH CONFIRMED FOR THE BTOB BUSINESS
▪ REDUCTION IN NET DEBT DRIVEN BY EFFICIENT OPTIMISATION OF WORKING CAPITAL
▪ RESILIENT PERFORMANCE BACKED BY STRONG FUNDAMENTALS DESPITE SUSTAINED
CAPEX POLICY
▪ SEPTEMBER 2017 RELOCATION TO NEW HEAD OFFICE IN LIMONEST
▪ FOLLOWING ON FROM THE SUCCESSFUL INTEGRATION OF MATERIAL.NET, SIGNING
OF AGREEMENT TO ACQUIRE OLYS GROUP
▪ STRONG AMBITIONS CONFIRMED, WITH TARGET TO HIT THE ONE BILLION EURO
REVENUE MARK BY 2021
FIRST HALF 2017-2018: KEY POINTS TO NOTE
5
GROUP REVENUES PER QUARTER
IN €M 2017/2018 2016/2017 % change
Q1 100.8 104.2 -3.3%
Q2 114.7 116.9 -1.9%
TOTAL H1 REVENUES 215.5 221.1 -2.5%
Memory component prices have tripled, thus penalising the product mix
Cross-channel selling: 26 stores at 30 September 2017 vs 21 last year
Growth in BtoB sales in Q2 vs last year (initial impact of restructuring launched in 2016)
6
INDIVIDUAL BRAND CONTRIBUTIONS TO REVENUES
IN €M Q1 rev. Q2 rev. H1 Total H1 change
BtoC 69.6 85.4 155.0 -3.7%
Incl. Cross-channel 11.5 12.6 24.1 +19.3%
BtoB 28.2 26.4 54.6 +0.4%
OTHER 3.0 2.9 5.9 +3.5%
TOTAL 100.8 114.7 215.5 -2.5%
61%25%
11%3%
BtoC (excluding stores)
BtoB
Stores
Other
7
INCREASED PERFORMANCE INDICATORS
Average basket growth (€ excl. VAT)
227,500 new customers
Over 2 million Around 600,000 Around 90,000
H 1 1 5 / 1 6 H 1 1 6 / 1 7 H 1 1 7 / 1 8
330311 334
Number of new accounts
LDLC Group: a household name (around 2.8 million fans in total)
(Total new accounts BtoB + BtoC)
95,000 Around 6,000
8
CHANGE IN GROSS MARGIN
IN €M2017/2018
6 MONTHS
2016/2017
6 MONTHS
Revenues 215.5 221.1
Gross margin 36.0 36.6
Gross margin as % of revenues
Growth in gross margin rate despite the surge in memory component prices and increase in
the number of stores
16.5%
15.8%
16.7%
H1
2016/2017
H2
2016/2017
H1
2017/2018
The Group is entering a recovery phase
9
CHANGE IN EBIT
Structuring and
strengthening of
management
teams
Capex sustained /
relocation
IN €M2017/2018
6 MONTHS
2016/2017
6 MONTHS
Revenues 215.5 221.1
Gross margin 36.0 36.6
Other purchases and external costs (12.0) (10.4)
Staff costs (16.3) (15.3)
Miscellaneous taxes (0.5) (0.4)
Other costs (0.5) (0.4)
EBITDA 6.6 10.1
Depreciation and provisions (2.2) (2.2)
EBIT 4.4 7.8
10
SUMMARY INCOME STATEMENT
IN €M2017/2018
6 MONTHS
2016/2017
6 MONTHS
Revenues 215.5 221.1
EBITDA 6.6 10.1
Underlying EBIT 4.4 7.8
EBIT 4.1 7.8
Financial profit (0.4) (0.4)
Earnings before tax 3.7 7.4
Tax (1.3) (2.9)
Net income 2.5 4.6
11
CASH FLOW STATEMENT
Major initiative to optimise working capital
Construction of head office: total investment of €23.5m (including fit-out
work), of which €22m financed by lease purchase
IN €M 30 Sept 2017 31 March 2017 30 Sept 2016
Free cash flow 5.9 17.1 9.5
Change in working capital 23.0 (1.4) (3.2)
Cash flow from operating activities 27.6 11.2 4.0
Cash flow from investing activities (25.6) (1.9) (1.2)
Cash flow from financing activities 20.3 4.5 5.9
Change in cash 22.4 13.8 8.7
Cash b/fwd 10.3 (3.5) 3.5
Cash c/fwd 32.7 10.3 5.2
12
BALANCE SHEET
ASSETS (in €M) 30 Sept 2017 31 March 2017
Non-current assets 73.9 50.8
o/w PP&E 39.4 17.7
Inventories and WIP 76.5 75.4
Trade receivables 18.4 17.1
Other receivables 17.6 16.9
Cash and cash equivalents 32.8 10.6
Current assets 145.3 120.0
Total assets 219.2 170.8
EQUITYAND LIABILITIES (in €M) 30 Sept 2017 31 March 2017
Shareholders' equity 57.6 54.9
Short-term borrowings 58.8 40.4
Non-current liabilities 63.1 44.9
Loans and borrowings 7.6 6.2
Trade payables 72.0 44.8
Others payables and
provisions18.4 20.0
Current liabilities 98.5 71.0
Total equity and liabilities 219.2 170.8
Improvement in debt-to-equity ratio through tight management of working capital: 0.58
vs 0.66 at 31/03/2017
Over 2 years, the Group has expended €65m (Materiel.net and new head office), €45m
of which was financed by debt loans
Sharp increase in property, plant and equipment
STRATEGIC PRIORITIES
GROUP NEWS
14
OUR ROADMAP
Continue growth
in online BtoC
Roll out
our store network
Strengthen our
position in BtoB
A STRATEGY THAT COMBINES ORGANIC
GROWTH WITH ACQUISITIONS
15
GROWTH IN ONLINE BTOC
GROW OUR MARKET SHARE
▪ Catalogue depth and synergies between brands
▪ Development of Hardware.fr ▪ Expert reputation and image▪ Quality of service
INNOVATING
▪ Creation of a PC configurator https://www.ldlc.com/configurateur-pc/
▪ Launch of 1st fully water-cooled PC by Materiel.net▪ Development of R&D unit ▪ Customer service: introduction of Live Chat facility
Customer Service of the Year award for the fourth year running100% of emails answered within 1 business day 15 seconds: average waiting time before speaking to an adviser100% of answers on social media
16
GROWTH IN ONLINE BTOC
FINALISE SYNERGIES WITH MATERIEL.NET IN H2 2017/2018
▪ Goal: capitalise on 2 complementary logistics platforms
(LYON / NANTES)
INTERNATIONAL EXPANSION
▪ Hiring of a Business Development Manager▪ Launch of LDLC website in Spanish and opening of 1st pilot store in Madrid
early FY 2018/2019
17
CROSS-CHANNEL DEVELOPMENT
27 LDLC stores and 10 materiel.net concept stores
at 1 December 2017
2021 TARGET
REVENUES OF AROUND €300M
100 STORES
Appointment of Eric Schneider
CEO of LDLC Distribution
140 employees currently
work in LDLC’s stores
Ramp-up of store opening
from H2 2017/2018
LOGISTICS CENTERS
LDLC.COM STORES
18
DEVELOP RELATED BUSINESSES
ONLINE BTOC GROWING
▪ Maginea.com: optimisation of catalogue
▪ L’armoiredebébé.com: promising start
Launch of 1st pilot store near Lyon in 2018
Already 70,000 fans
OTHER BUSINESSES
19
RAMP-UP OF DEVELOPMENT IN BTOB
STRENGTHENING OF ORGANISATIONAL STRUCTURE
▪ Initial benefits of divisional restructuring in 2017/2018▪ Creation of a sales and logistics unit in Gennevilliers
Goal: expand footprint in the Paris region ▪ 70 salespersons over the medium term ▪ Further shorten delivery lead times
ACQUISITION OF OLYS
▪ APPLE Premium Reseller for professionals (BtoB - 60%) and individual consumers (BtoC - 40%)
20
ACQUISITION OF OLYS
OLYS MARKETS THE BIMP BRAND AND, IN NOVEMBER 2017, ACQUIRED GDA, WHICH
MARKETS THE ITRIBU BRAND
OLYS NOW NO.1 APPLE PREMIUM RESELLER
IN FRANCE
14 branches including 10 stores:
Lyon, Marseille, Valence, Grenoble, Chambéry,
Saint Etienne, Clermont Ferrand, Besançon,
Montbéliard, Compiègne
140 employees
including 25 BtoB salespersons
4 Apple Premium Reseller stores:
Nîmes, Montpellier, Mauguio, Perpignan
30 employees
21
TERMS OF OLYS ACQUISITION
A STRUCTURAL ACQUISITION
CREATING VALUE ADDED
Acquisition of entire share capital
Acquisition subject to the approval of the French Competition Authority
Price: €15m - 100% debt financing
Closing due by 31 January 2018
The managers will remain in the company
OLYS KEY FIGURES
▪ 2017 REVENUES (p): €60M
▪ EBITDA (p): €3M
22
INVESTMENT IN NEW HEAD OFFICE
MORE THAN JUST A HEAD OFFICE… AN ENTIRE LDLC CAMPUS
3 buildings: offices, LDLC School and the dome-shaped “Hub”, focus of campus life.
▪ 18 months of construction
work
▪ 2.5 acres of land
▪ 7,000 m² of office space
▪ 3,400 m2 of greenery
▪ 60 trees planted
▪ 300 parking lots
▪ 390 employees and 80 students
KEY FIGURES
TOTAL INVESTMENT OF €23.5M
(INCLUDING FIT-OUT WORK)
23
THE HUB, THE CENTRE OF CAMPUS LIFE
LDLC SCHOOL INTEGRATED
OFFICES
THE LDLC CAMPUS
CONCLUSION
25
▪ BTOC BUSINESS STILL DISRUPTED BY RISING MEMORY COMPENANT PRICES
▪ INTEGRATION OF OLYS GROUP AND SEARCH FOR FURTHER OPPORTUNITIES
▪ DEVELOPMENT OF BTOB IN PARIS REGION
▪ RAMP-UP OF STORE OPENINGS
▪ LAUNCH OF BTOC BUSINESS IN SPAIN (ONLINE & CROSS-CHANNEL)
▪ CONTINUED DRIVE TO STRENGTHEN FUNDAMENTALS
H2 2017-2018: ROADMAP
26
LDLC GROUP: 2021 TARGETS CONFIRMED
€1bnrevenues
5.5 / 6%EBITDA
100stores
INVESTOR NOTEBOOK
SHARE CAPITAL & LISTING2017/2018 TIMETABLE
28
SHARE CAPITAL
Total number of shares at 30 November 2017: 6,322,106
De la Clergerie family*: 40.61%
Laurent de la Clergerie 19.80%
Caroline de la Clergerie 9.94%
Olivier de la Clergerie 9.74%
Suzanne de la Clergerie 1.13%
Public float: 37.25%
Domicorp: 10.94%
Treasury shares: 0.2%
* No action in concert: this segment includes
members of the De la Clergerie family
Keren Finances***: 6.10%
Amiral Gestion**: 4.90%
** according to 26 July 2017 disclosure
*** according to 13 November 2017 disclosure
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SHARE PRICE MOVEMENTS
Share price over 5 years
Euronext – Compartment B
FR00000755442 LDL
Market capitalisation: €135m
1 yr high: €37.50
1 yr low: €19.0
Analysts tracking the LDLC share:
Gilbert Dupont/Ning Godement
Oddo/Antoine Augier de Lajallet
Listing
25 January 2018 Q3 2017/2018 revenues
26 April 2018 FY 2017/2018 revenues
14 June 2018 FY 2017/2018 results
Timetable
