Isr Presentation 2019
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ISR PRESENTATION 2019 1 STRATEGY FNAC DARTY OMNICHANNEL LEADER IN EUROPE Technical products 51% France & Editorial products €7.5bn revenue – 25,000 employees Switzerland 78% 2018 17% 2018 Top 3 European Omnichannel Retailer Turnover Turnover Iberian €7.5bn White goods €7.5bn Peninsula 9% 22% 780+ multiformat stores in 12 countries Other products and Benelux 13% services (3) 10% 2nd largest e-commerce retailer in France(1) What brand do you think best embodies the success of the 19% of Group sales omnichannel transition? 4th barometer Oliver Wyman – October 2017 81 million transactions 51% 34% (2) 32% No. 1 after-sales service in France 28% 22% 19% 15% 8 million loyalty program members 11% 9% 7% 6% 49% of online sales are omnichannel 5% 3% 1% 0% 1 Source: FEVAD, 2018 0% 10% 20% 30% 40% 50% 60% 2 Internal customer studies 3 Include: Ticketing, B2B, after sales service, membership fees, franchise fees, insurance, consumer credit 3 LEADING POSITIONS IMPLYING RESPONSABILITY… Audits carried out in 2018 on manufacturing facilities of our own-brand product suppliers in all client # our markets, # for key suppliers, specifically on high- in share of wallet 27 end products 1 1 CSR check points 44 43.5% 41% 31 99 29 28 27 26 26 27 21 21 25% 28% audited plants 19 16 16 18 19% 18 unsatisfactory CSR audit TOTAL CE IT Telecom SDA MDA Book Audio/ Supplier #1 Supplier #2 Supplier #3 Supplier #4 Supplier #5 video/ gaming Strict rules and audit procedures with our suppliers: Fnac Darty market share in Premium segments: 3rd and 4th quartile1 . Distribution of the "Supplier CSR Charter" to our third-party suppliers Fnac Darty market share (total market)1 . Integration of CSR dimension in processes and documents framing the supplier relationship and execution of audits on manufacturing facilities of our own-brand 1 Source: GFK - 2018 FY data – France product suppliers Source: GFK YTD Sept. 2017 - Fnac Darty - France 4 CONFIANCE +: FNAC DARTY STRATEGIC PLAN OMNI- CHANNEL FRANCHISE DIVERSIFICATION SERVICES LOYALTY BELIEFS Customers are agnostic Growth driver Targeting new markets Differentiating asset Ecosystem cornerstone to find new opportunities Marketplace x3 200+ openings Kitchen plan: Launch of Subscription programs 100+ new stores Smart Home Logistics open to third parties Shop-in-Shops rollout UX Program Self-checkout Further gains in market share Operating margin mid-term objective: 4.5-5% 5 CONFIANCE + ROLL-OUT BASED ON TWO ICONIC BRANDS INDEPENDENT EXPERTISE RESPONSIBLE PRODUCTS AND CUSTOMERS’ ADVICE AND SERVICES Give access to culture Strong services offer for repair, reuse and product recycling Independent vendors to give best advice for an educated purchase #1 after-sales service 1972 launch of Fnac Labo 1973 launch of Darty « contrat de confiance » 6 CONFIANCE + ROLL-OUT BASED ON OUR HUMAN CAPITAL 25,000 EMPLOYEES: A KEY DIFFERENTIATING ASSET Retail: 10-15% 38.6% 12.6% 40.4 Women Turnover YEARS OLD 38.5 Average age 4.3% 35 19.7% 50+ Disability 37 Senior 28 Salesforce by geographic region 4.6% National: 4.9 %* Absenteeism Benelux sickness 13% Iberica 12.7 16% National: 33.8** YEARS France - 25.4 Seniority Switzerland; 71% Frequency rate Accidents at work Figures as at 31/12/2018 7 FNAC DARTY: A RECOGNIZED RESPONSIBLE COMPANY FNAC and DARTY are identified by customers as more responsible brands than AMAZON Results of the customers survey conducted in December 2017 “Could you please rate from 1 to 10 the social commitment of the following brands?” 8 FNAC DARTY: A RESPONSIBLE RETAILER RECOGNIZED BY ESG RATING AGENCIES . Information rate: 72% 38 out of . Sector average: 53% 61 . Rank in Sector: 16/71 136 . Rank in Region: 698/1349 . Rank in Universe: 1310/4660 Overall ESG scrore Relative position 9 A 6-PILLAR CSR POLICY TO MEET EXEMPLARY OBJECTIVES AND BUSINESS OPPORTUNITIES 10 CSR LEVERAGES EXEMPLARY OBJECTIVES As a leader, Fnac Darty must be best in class Limiting the Transforming environmental Fnac Darty impacts of our while developing activities employer’s to reduce risks responsibility and costs Being flawless to limit risks 11 SOCIAL RESPONSIBILITY HUMAN CAPITAL OUR KEY ASSET Build 1 Group with 2 brands TARGETS Promote a common culture Voluntary Redundancy Scheme ACTIONS Centralisation of headquarters Harmonisation of the statutes FNAC DARTY INTEGRATION 12 SOCIAL RESPONSIBILITY HUMAN CAPITAL OUR KEY ASSET 1 STRATEGIC PROGRAMS Client excellence: trained employees breakdown 2017 – 2018 PROJECT MANAGER 2020 Services, Cash registers and Logistics Implementation of a 24-month diploma training programme for Operating Managers 42% Develop the “Manager Coach” approach Nearly 600 managers trained from several business lines Call Center Significant participation rate (94% attendance at face-to-face sessions) Consultants 1% Deliverers 1% 2018 – 2019 PROJECT CLIENT EXCELLENCE Vendors 56% Implementation of a "CUSTOMER EXCELLENCE" training programme, for a period of 12 to 18 months Anticipate the evolution of business lines, facilitate mobility and develop the employees’ employability in stores Develop customers’ relations and sales skills in all business lines 2 « FNAC DARTY ACADEMY » A GLOBAL BUSINESS UNIT DEDICATED TO PEOPLE DEVELOPMENT DEVELOPPING PEOPLE 13 SOCIAL RESPONSIBILITY HUMAN CAPITAL OUR KEY ASSET Digital, short and monthly survey to c.15,000 employees with results immediately available to managers Instill a culture based on listening & proximity, agility & innovation Manage employees’ engagement FNAC-DARTY EMPLOYEE STOCK PURCHASE PLAN Implemented in France and abroad with matching contributions up to 700€ and a 20% discount on the subscription price Strengthen the sense of belonging to Fnac Darty through value-sharing schemes An overall subscription rate of 18.13% 4,500 subscriptions and an average subscription amount of 1,500€ Capital increase on 90,558 shares at a price of €73.72 COMMITTING PEOPLE 14 FNAC DARTY FACES ETHICAL REQUIREMENTS Duty of care Sapin II RGPD New 2017-2018 laws Respect for human rights, Prevention, settlement Privacy by design, profiling, Themes environmental, labour and agreements, repressive and right to erase and portability, fundamental freedoms preventive aspects notification of data leaks Governance ETHICAL COMMITTEE Group CSR Manager Internal Audit Director Data Privacy Officer Risk mapping Actions carried Due diligence subcontractors, suppliers, subsidiaries, stakeholders Communication and integration of out in 2018 Alert and reporting systems customers policies into contracts System for monitoring and evaluating the measures implemented Training and employee awareness 15 FNAC DARTY RAISES AWARENESS TO REDUCE CONSUMPTION AND LIMIT ENVIRONMENTAL IMPACTS First Fnac Darty Carbon audit conducted in 2017 This carbon footprint concerns scopes 1 and 2 (direct emissions). The emissions caused Ecoguide implemented by the life of the products are 9 times larger. Our leverage to reduce this impact is to extend the life of these products, as described in the circular economy pillar. in Fnac Darty stores in France Action to be strengthened: click & collect 16 CSR LEVERAGES BUSINESS OPPORTUNITIES Expertise and customers’ information Economic, social and cultural actor 17 CSR LEVERAGES BUSINESS CHALLENGES & OPPORTUNITIES CONSUMERS’ EXPECTATIONS FNAC DARTY STRATEGY CSR COMMITMENTS CONTRIBUTION TO THE LOCAL ECONOMY, BEST IN CLASS AGILITY / PROXIMITY CULTURAL AND SOCIAL LIFE THROUGH FNAC OMNICHANNEL EXPERIENCE DARTY OMNICHANNEL PLATEFORM BEST ADVICE THROUGH FNAC LABO A UNIQUE ENVIRONMENTAL IMPACT NOTE ON TECHNICAL EDUCATED CHOICE SERVICES PROPOSAL PRODUCTS FNAC DARTY BAROMETER FOR PRODUCTS REPAIR CIRCULAR ECONOMY UNIQUE AFTER-SALES . Ecodesign and customers’ information EXPERIENCE OVER GOODS BEST IN CLASS PRODUCTS . Re-use OFFER AND LINEUP . Repair After sales service in France . Recycling # 1 Waste collector in France 18 FNAC DARTY: AN ECONOMIC, SOCIAL AND CULTURAL ACTOR A SIGNIFICANT STORES NETWORK TO WIDEN ACCESS TO CULTURE CONTRIBUTE TO THE LOCAL ECONOMY Bookstore in France . 780 stores worldwide in 2018, of which: # 1 Ticket vendor in France Record shop owner in France 563 stores in France 217 international stores 382 Darty (220 integreted-stores 1,650 90,000 10,000 and 162 franchisees) free cultural events in people participated people 147 stores in Benelux Fnac stores in France to the Fnac LIVE participated to the (11 Fnac and 72 Darty festival: 30 free Forum Fnac Livres in Belgium; concerts over 3 days 64 Darty in the 180 Fnac Netherlands) (88 integreted-stores and 92 franchisees) 3 34 Fnac in Spain Key literary award 28 Fnac in Portugal 8 Fnac in Switzerland Objective of 1 Fnac in Tunisia 3 Fnac in Morocco +60 new stores 2 Fnac in Qatar openings 2 Fnac in Ivory Coast in 2019 1 Fnac in Congo 1 Fnac in Cameroon 19 SOCIAL RESPONSIBILITY HUMAN CAPITAL OUR KEY ASSET 2018 Since 1972 Since 2012 LAUNCH OF A PUBLICATION OF THE 1ST LAUNCH OF PRODUCT AFTER-SALES BAROMETER COMMUNAUTE.DARTY.COM, REPARABILITY NOTE BY BRAND the 1ST support community platform for Darty users compares the ENVIRONMENTAL NOTE characteristics and indicates the performance of environmental impact of technical products TVs, Tablets, PCs and 1 038 tests on 492 smartphones. products in 2018 69% of our products in 2018 INNOVATIVE ACTIONS THAT ONLY EXIST AT FNAC DARTY 20 EXTENDING PRODUCTS’ LIFE SPAN IS A KEY ENGAGEMENT TO OUR CUSTOMERS… Fnac Darty Occasion Build robust and easy to repair products 90 products given each day to ‘ENVIE’ for a Eco Inform and advise customers on the proper use second life conception of products Re-use Launch of the