2019 UNIVERSAL REGISTRATION DOCUMENT 2020 the ultimate_high-tech experience The LDLC Group is pursuing its development as the outright leader in the online high-tech market. Buoyed by the passion, agility and entrepreneurial spirit that define the Group’s identity, our retail brands are in prime position to take full advantage of the growth and expansion opportunities offered by their respective markets. In keeping with its pioneering mindset, the Group will continue to design and develop innovative high- value-added solutions in response to customer expectations. Our constant determination to satisfy the needs of our customers is the foundation of their trust in our Group, besides acting as an inexorable driver of the unflagging commitment shown by our employees. Laurent DE LA CLERGERIE Chairman of the Management Board and founder of the LDLC Group 01 high-tech experience the ultimate_ THE LDLC GROUP IN FIGURES FY 2019/2020 2019/2020 revenues €493.4m 1,500 brands 15 retail chains including 7 e-commerce Approx. 1,000 employees 77 stores in France 02 unique visitors/year million fans on social media >40,000 listed products 3.5 35 million Up to 16,000 parcels handled per day 5 countries covered: France / Belgium / Luxembourg / Switzerland / Spain THE LDLC GROUP IN FIGURES FY 2019/2020 FY 2019/2020 saw sharp growth in Group financial results including a return to profit levels exceeding historical Approx. 1,000 employees performance, particularly in the second half. These results prove the merits of the structural strategic guidelines we have followed over the past 18 months in order to strengthen our offering and positioning on high-tech markets. Moreover, the Group considerably strengthened its financial position over the year, bringing net debt down from €60.3 million to €8.6 million under the combined effects of real estate disposals and strong operating cash flow of €12.4 million. 03 Despite the disruptive environment of the last few months, the Group is confident in its ability to pursue and step up its profitable growth trajectory in 2020/2021 and is targeting revenues of over €635 million, entailing growth of over 28%, and EBITDA of €38 million after consolidation of the recent Top Achat business acquisition. “ high-tech experience Olivier DE LA CLERGERIE, LDLC Group CEO the ultimate_ SOLIDARITY IS A HALLMARK OF THE GROUP’S 04 The COVID-19 health crisis, which has affected over half of the world’s population, has demonstrated the Group’s resilience, particularly in view of the solidarity and community spirit shown by its employees. Ensuring continuity of business Under challenging circumstances, all Group employees have rallied together to ensure continuity of business and carry on delivering the quality of service that has earned the Group its high reputation. In only a few days, the Group reorganised its operations in order to allow its 1,000-strong workforce to continue operating from home. Fully committed and already accustomed to working from home, our teams had no difficulty rising to this enormous challenge! Mutual assistance initiatives were rolled out to ensure that each person had a role to play in this turbulent environment, in which logistics and customer service operations were particularly hard pressed. Staying close to our customers The Group’s BtoB business was particularly disrupted by the general meltdown of economic activity in France. Attentive as ever to their customers’ needs, our BtoB teams maintained a hands-on service by staying abreast of customer news, lending a listening ear and providing any support required. Supporting partners and the ecosystem To help tackle the pandemic, the Group harnessed its contacts and supply chain circuits in order to facilitate shipments of health accessories from Asia. To minimise the impact of the crisis on partners and suppliers, the Group committed to setting an example by strictly adhering to payment terms during this period. The LDLC Group offered considerable support to its franchises at this challenging time by suspending invoice payments and providing solutions to preserve cash resources. 05 high-tech experience the ultimate_ SPECIALIST MULTI-BRAND RETAILER, NO. 1 FRENCH ONLINE HIGH-TECH BRAND The LDLC Group was one of the first to venture into online sales in 1997. Now a leading specialist multi-brand retailer and major player in the online IT and high-tech market, the LDLC Group serves both individual consumers (BtoC) and businesses (BtoB) via 15 retail chains including 7 e-commerce websites. BtoB BtoC 06 related businesses With shared & optimised back-office functions Accordingly, more demanding customers will SPECIFIC POSITIONING find what they’re looking for among the premium range of products and services offered on Materiel. FOR EACH BRAND net, while consumers seeking high-quality but The Group currently markets high-tech products affordable products are more likely to check out through four online retail chains, each one the Top Achat or shop.hardware.fr websites. The strategically positioned to cater for the needs of a LDLC website is the cornerstone of this brand specific customer segment. strategy and is distinguished by its broader offering, recognised quality of service and strong Each Group website offers its own catalogue reputation among the general public. range, services and price positioning, which are determined in accordance with the customer Besides brand repositioning, operations have been profile targeted by each brand. reorganised such that each brand has its own dedicated marketing team more sharply focused on specific customer requirements. LDLC GROUP HIGH-TECH BRANDS Ultra-specialist high-end offering Broad range Competitive pricing 07 With shared & optimised back-office functions IT SYSTEM SOURCING AND LISTING LOGISTICS high-tech experience Top Achat acquisition In April 2020, the LDLC Group acquired the Top Achat business. Created in 1999, the Top Achat website was one of the pioneering online retailer of mass market IT hardware and electronics in France and now the ultimate_ enjoys a strong reputation among buffs and geeks eager to control their budget. This business combination, already up and running, is fully in keeping with LDLC’s specialist multi-brand retail strategy and is a source of further opportunities and synergies for the newly expanded Group. EXCELLENCE IN CUSTOMER RELATIONS Interview with Christophe BÉGUÉ, Customer Relations Director, LDLC Group 08 In 2020 the LDLC Group won the Customer Service of the Year award* for the sixth year running. How do you explain such a performance? Our management team is committed to investing in customer relations. Years ago, we made the decision to set up a fully in-house team of 55 expert advisers based at Group headquarters. It is their passion and commitment that guarantee the satisfaction of our customers on a day-to-day basis. And of course, this explains our excellent performance in the “Customer Service of the Year “ survey. * Technical Product Retail category - BVA Group survey - Viséo CI - May to July 2019 How do you manage to rally such a taskforce In addition to sharing team expertise, we also train together? advisers via e-learning modules. For example, The sector in which we operate has a strong affinity we offer them the chance of training in order to component and our advisers share our customers’ obtain Le Robert certification [global certificate of enthusiasm for all things high-tech, meaning that proficiency in the French language]. they communicate with each other as equals. Is it not difficult to keep advisers motivated? Independence and accountability are the watchpoints of our customer relations initiatives. We encourage support and a motivating work environment, which we enhance by varying the type of assignments given: each adviser works We share our through different communication channels 09 customers’ enthusiasm (phone, email, social media, chat), which avoids monotony and helps us cope with peak demands for all things high-tech... for phone contact (99% of incoming calls are answered). We provide guidance to our advisers in order to These efforts have certainly paid off, as staff inspire them with our vision of customer relations. turnover is particularly low in these positions. After a strict selection process, advisers sharpen Team cohesion was a major plus during lockdown, high-tech experience their teeth on the email channels, where their when work-from-home measures already partly replies are systematically checked at first, before introduced a year ago were rolled out across the they are allowed to handle customer requests by workforce. the ultimate_ chat or phone with support from the team. The LDLC store chain continues to grow apace with the addition of 9 new franchises in 2019/2020. To sustain growth and ensure the success of its sales outlets, the Group has Interview with established a customised support strategy for the franchises. Yann BENOIT, Franchise Training Manager LDLC STORES: TRAINING, THE KEY TO SUCCESS 140 44 years store-based employees average franchisee age 10 30,000 1,250 products available franchise on order applications per year 113 m2 51 average LDLC stores* sales space * 31 March 2020 Interview with Yann BENOIT, Franchise Training Manager What kind of support do you provide for the LDLC How do you keep your training up to date? franchises? Franchisees have access to an extranet site which provides Above all, we seek to share our expertise and the service a series of practical, regularly updated guides on subjects values that have underpinned the success of the LDLC brand such as new regulations or new developments in IT systems. for nearly 25 years. As a former LDLC store manager based in We also use the extranet to share best practices escalated Lyon, I value and try to share the brand’s high standards with by operational coordinators or regional meetings across the regard to the quality and technical features of the products it whole of the network.