INVESTOR

DAY December 5th, 2017

 8:45 › 9:15 Fnac Darty - Our Next Big Thing › Enrique Martinez
9:15 › 10:15 Enrich our Ecosystem

PROGRAM Product offering / marketplace

Service offering
Brands & loyalty programs
› Elodie Perthuisot
› Vincent Gufflet
› Alexandre Viros

10:15 › 11:15 An Open Omnichannel Platform

Store network › Benoît Jaubert
Operational efficiency › Olivier Theulle
Digital excellence › Alexandre Viros

11:15 › 11:45 BREAK

11:45 › 12:00 International operations › Jean-Brieuc Le Tinier
› Charles-Henri de Maleissye

12:00 › 12:15 Human Capital › Frédérique Giavarini

12:15 › 12:30 Financial trajectory › Jean-Brieuc Le Tinier

12:30 › 13:00 General conclusion / Q&A with moderator

13:00 › 14:15 LUNCH
14:15 › 14:30 Transfer
14:30 › 16:00 Store visits
STRATEGIC
REVIEWEnrique Martinez,
CEO
A SKILLED MANAGEMENT TEAM

ENRIQUE MARTINEZ
Group CEO

CHARLES-HENRI DE MALEISSYE FRÉDÉRIQUE GIAVARINI VINCENT GUFFLET FLORIAN INGEN-HOUSZ

CEO of Fnac Vanden Borre Human Resources Director Services Director Executive committee secretary
Fnac Darty Strategy
and M&A Director

ERIC IOOSS BENOÎT JAUBERT JEAN-BRIEUC LE TINIER BENJAMIN PERRET

Information Systems Director Retail Director Group CFO Communications
and General Secretary and Public Affairs Director

ELODIE PERTHUISOT MARCOS RUAO OLIVIER THEULLE ALEXANDRE VIROS

Commercial Director CEO of Fnac Spain Operations Director Marketing
and E-commerce Director
FNAC DARTY TRANSFORMATION
LEADING TO A UNIQUE OMNICHANNEL EXPERTISE

5 years ago Key initiatives taken

We have anticipated We have completed our
today’s customers needs business transformation

UNIQUE
OMNICHANNEL
Belief #1 Omnichannel capabilities:
c.€70m invested in digital over
EXPERTISE
Customer agnosticity
6 years and c.€60m in logistics
Belief #2
The store network is the bedrock of New store formats
a successful omnichannel strategy & Franchise expansion:
6 formats and 200+ stores
in franchise
Diversification:
10+ new categories
Reduction of cost base
 FNAC DARTY
A STRONG LEADER

700+ 2nd 85M 1st 7M

multi-format E-commerce Transactions After-sales loyalty
stores across player service members
the world in France1 in 2016 in France2

45% of web sales are Omnichannel

1 Source: FEVAD, Q2 2017
2 Internal customer studies
FNAC DARTY
INTEGRATION IS WELL ON TRACK

TEAMS COMMERCE OPERATIONS SERVICES IT

Common Group HQ Shop-in-shops Pick-up of Fnac.com Photo printing corners Launch of IT

organization purchases in the Darty at Darty platforms
Darty.com on network convergence
Single Belgian HQ Fnac.com Darty+ launch
marketplace Fnac TV delivery by
Group Ex. Darty Cross-fertilization
Committee Opening of the first of best practices
store branded Distribution centers’ (warranty,
Fnac & Darty mutualization insurance…)

BUILDING A HIGHLIGHTING MERGING OUR LEVERAGING OUR CREATING A

COMMON THE BEST OF OUR OMNICHANNEL GALAXY OF COMMON IT
CULTURE OFFER PLATFORMS SERVICES BEDROCK
FNAC DARTY
MOST DIGITAL OMNICHANNEL RETAILER

Online Sales Brick&mortar assets

17% % of total sales continue their development

Broadest digital exposure in

the industry with growing digital
+6pts vs. 13% 12% capabilities
average
11%
Average competitors: 11%

9%

UNIQUE
OMNICHANNEL
EXPERTISE

Source: latest published figures, Group level, except for Best Buy (Domestic sales)
THE NEXT BIG THING
NEW CUSTOMER BEHAVIOR

HYPER-CONNECTED COMMUNITY-DRIVEN CONVENIENCE & FLEXIBILITY

“NOWNER” EXPERIENCE
OVER GOODS

LOOKING TAILORED OFFER AND

FOR RECOGNITION PERSONALIZED REWARDS

ACCESS OVER
OWNERSHIP
THE NEXT BIG THING
IMMEDIACY IN A DIGITAL WORLD

Yesterday Today Tomorrow

Products Hundreds
Thousands Millions
available online of millions

Within Within Within

Delivery time the week the day the hour

Connectivity Hardware AI-powered

All devices
devices only ecosystems

Customer All-inclusive
engagement Loyalty Subscription
subscription
IS
READY FOR
THE NEXT BIG THING
THE 3RD DIGITAL REVOLUTION
WILL BE ABOUT SERVICES

1st digital 2nd digital 3rd digital

revolution revolution revolution

2000 2011 2017

E-commerce platform Omnichannel platform

"retail-as-a-service"
platform
CONFIANCE
A "RETAIL AS A SERVICE" PLATFORM
WHAT DOES THAT MEAN?
FOR BRANDS
AND PARTNERS
Strong sourcing platform
Reach a large consumer base
Leveraging innovation
and protecting value
Marketplace vendors access
Opened logistic platform
(deliveries…)
Open channel for content
providers (Deezer, Canal+,
Daphni fund…)
ENSURING REACH
PROTECTING VALUE
FOR CLIENTS
Offering a unique seamless
customer journey
Product offer: large, premium,
competitive
Customization: targeted offer
Unique services experience:
premium deliveries, after-sales,
home assistance, loyalty programs
"retail-as-a-service"
platform
OFFER THE BEST CLIENT EXPERIENCE
BEST VALUE FOR MONEY
THE "RETAIL AS A SERVICE" PLATFORM
IS BUILT ON TWO STRATEGIC PILLARS

AN ENRICHED ECOSYSTEM AN OPEN

FOR OUR CUSTOMERS OMNICHANNEL PLATFORM

1. Smart sourcing and marketplace 1. Store network agility

development
2. Continuously adapt our operations
2. Become a services aggregator leader
3. Enhanced digital capabilities
3. Leverage our brands, develop
a differentiating loyalty program

Consolidate leadership in existing geographies outside of France

Developing our human capital

Ensuring a sound financial trajectory: mid-term operating margin objective 4.5% to 5%

INVESTOR
DAY December 5th, 2017
FNAC DARTY
ECOSYSTEM
OFFER
Elodie Perthuisot,
Commercial Director
WHY SOURCING IS STRATEGIC

Seizing key market trends Sharing our experience Ensuring the best
through the platform value for money
Offering a large choice for customers
to leverage supplier
Conquering new markets innovation and protect
value
AN UNMATCHED SCALE IN OUR MARKETS…

# 1 # 1
in all client
our markets, for key suppliers,
specifically on in share of wallet
high-end products

44 43.5% 41%

31 28%
28 28 29 25%
25 23
25
21 21 19%
18 17 17
16

TOTAL CE IT Telecom SDA MDA Book Audio/ Supplier #1 Supplier #2 Supplier #3 Supplier #4 Supplier #5
video/
Fnac Darty market share in Premium segments: 3rd and 4th quartile1 gaming
Fnac Darty market share (total market)1
Second competitor market share2
1 Source: GFK - 2016 FY data – France
2 Source : Fnac Darty estimate Source: GFK YTD Sept. 2017 - Fnac Darty - France
… ALLOWING US TO PROVIDE
THE BEST COMMERCIAL PROPOSITION…

LEVERAGE TAILORED AND BEST IN CLASS OFFERS

INNOVATION EXCLUSIVE OFFERS ON WEB CHANNEL

Grow c.+5pts market Exclusive launches Largest long tail catalogs

share in the upper price (e.g. Google Home) in our markets
quartiles of our markets
Exclusive products: Products dedicated to
Deliver outstanding web channel
customer experience,  Best value for customization
in particular thanks to money packs
our supplier partnerships  Own brands
 Exclusive contents
… AND THE BEST VALUE FOR MONEY

OUR PRICING POLICY TODAY OUR AMBITION

More competitive than click&mortar Affordability

Very close to pure players
Maintain promotional campaigns
Fnac Darty prices alignment policy across channels
Leverage sourcing products to match entry price
2017 Facial Pricing index is below our click&mortar
competitors

2017 Facial Pricing index is already competitive vs. pure Best value for our loyal customers
players when taking coupons into account
Price investments on loyal consumers
101
100 Develop targeted offers for most loyal or valuable customers
97 97 (purchasing frequency, upselling, Fnac+, Darty+ …)

Click&mortar Fnac Darty Fnac Darty Key pure player

competitors (excl. coupons) (incl. coupons) competitor

Source : Fnac Darty internal studies based on 55,000 references excluding Editorial
Products – competitors based on websites’ daily prices
 BUILDING A PROFITABLE BLACK FRIDAY

Sourcing exclusive Offers focused on A brands Special Targeted and limited

and negotiated offers and premium quartiles partnerships adjustments to competitors’
 50% of our offers are attacks
on exclusive products
 Driving traffic and purchases
to these offers on a large scale

MDA sourcing product with Special order – Very premium TV with Strong partnerships with
high margin and strong exclusive – 11 000 units offered insurance – Microsoft and Google
marketing partnership with Samsung
AN ONGOING DIVERSIFICATION AMBITION
BASED ON A SOLID TRACK RECORD…

NEW CATEGORIES INTRODUCTION

is accelerating since 2011

2011 2013 2014 2015 2016

Fnac
Darty
Fnac and Darty

40,000
3 MAIN DIFFERENTIATIONS:

 SDA growth at Fnac, leveraging Darty experience

REFERENCES
already deployed in new  Existing segments still offering strong growth potential (Toys, Kitchen…)
categories*
 New segments around already offered products (Robots, VR…)

* at Fnac
KITCHEN ACCELERATION

Kitchen development plan: 100+

openings targeted in the mid-term

Dedicated stores
Corners in Darty stores
Network expansion mainly through franchise
European reach

Important growth opportunities

Accompanied customer lifestyle
Significant upsell for Darty
Participate in the French market consolidation
 … AND SUPPORTED
BY STRONG MARKETPLACE DEVELOPMENT

TODAY INITIATIVES MID TERM TARGET

30M REFERENCES Product portfolio
 Rapidly increase our volumes in appliances
 Launch and consolidate new product categories
STORED OFFER STILL REPRESENTING
C.12% OF WEB THE MAJORITY OF VOLUMES
(secondhand, DIY, cookware, gardening, sports,
BUSINESS VOLUMES1 accessories, etc.)
MARKETPLACE BUSINESS
2,000 VENDORS VOLUMES TO BE x3 COMPARED TO 2016
Internationalization
 Immediate vendor access to all Fnac Darty
geographies
 Develop vendors operating from abroad

Services
 Third-party ecosystem development
 Delivery and after-sales services development

1 in 2016
SERVICES
Vincent Gufflet,
Director of Services
WHY ARE SERVICES KEY?

A GROWING SOURCE A TRUE AXIS FOR A KEY COMPONENT FOR

OF REVENUE AND DIFFERENTIATION CUSTOMER ENGAGEMENT
MARGIN AND SATISFACTION
 FNAC DARTY ECOSYSTEM IS ENRICHED BY
OUR HISTORICAL SERVICES VALUE PROPOSITION

LARGEST RANGE OF SERVICES AVAILABLE ON THE MARKET

BEFORE & DURING THE SALE AFTER THE SALE

 INDEPENDANT  CREDIT CARD  HOME DELIVERY  WARRANTY  REMOTE ASSISTANCE  MOBILE / BOX
TECHNICAL ADVICE
 LEASING  INSTALLATION  INSURANCE  IN-STORE ASSISTANCE  ENERGY

 BUY BACK  INTERNET PROTECTION  AT-HOME ASSISTANCE  PAY TV

AND CLOUD  ONLINE ASSISTANCE
AND COMMUNITIES  …

ADVISE FINANCE DELIVER PROTECT & CARE ASSIST GET ACCESS

DARTY SERVICES REPRESENT
A UNIQUE COMBINATION OF ASSETS

UNRIVALED HOME DELIVERY SERVICE FOR LARGE PRODUCTS (MDA, TVs)

 c.2M home deliveries each year
 Multiple premium options: Same-day delivery (Paris area), 7a.m.-9p.m. delivery, etc.

BEST-IN CLASS AFTER-SALES CAPABILITIES

 2,000 technicians and technical advisors, 1.5 M repairs per year
 24/7 Remote Assistance

ABILITY TO SELL & MANAGE SUBSCRIPTION-BASED SERVICES

 Energy, Box, Mobile, Pay TV, Insurance, Antivirus, etc.
 Billing and Customer management capabilities
 Partnerships with some leading operators

UNIQUE DATA COLLECTION ON PRODUCT USAGE AND FAILURES

 Deep data collection on products (data from >100 M customer contacts)
 Data primarily used for tech training and operating efficiency
FNAC DARTY LEVERAGES THESE EXISTING ASSETS
WITH ALREADY STRONG RESULTS

FNAC AND DARTY SERVICE KNOW-HOWS 2017 IS A FULL YEAR FOCUSED ON CROSS-FERTILIZATION
ARE PERFECTLY COMPLEMENTARY

2017 - Q1 Q2 Q3 Q4

EXTENDED HOME DELIVERY PHOTO PRINTING UNLIMITED HOME

WARRANTIES DELIVERY & ASSISTANCE

CREDIT CARD INSURANCE

HOW WE WILL KEEP ON LEADING THE INDUSTRY RACE ON SERVICES

LEVERAGE OUR REJUVENATE SERVICE TRANSFORM

SERVICES ASSETS CUSTOMER EXPERIENCE INTO A SMART
HOME OPERATOR

 Enlarged service offer  Dedicated services  Launch of dedicated

(open platform / approach in store connected devices
marketplace)  Improved services service offer
 New customers: B2B… experience online  Google home partnership
 New sales channels
FNAC DARTY SERVICES MOVING AHEAD
ADAPTING TO NEW CUSTOMER DEMANDS

RAPIDITY CUSTOMIZATION
SIMPLICITY
OF SERVICE OF SERVICE

INCREASED QUALITY OF CUSTOMER EXPERIENCE

INCREASED COST EFFICIENCY
BRANDS
& LOYALTY Alexandre Viros,
Marketing and
e-commerce Director
WHY BRANDS AND LOYALTY ARE STRATEGIC

ICONIC BRANDS

LOYALTY CUSTOMER
PROGRAM DATABASE
TWO ICONIC & COMPLEMENTARY BRANDS

BRAND BIRTH 1954 1957

BRAND AWARENESS 99% 98%

BRAND HISTORICAL ATTRIBUTE CURIOSITY "CONTRAT DE CONFIANCE"

INDEPENDENCE, SERVICE, TRUST,
KEY BRAND DNA PILLARS PASSION, DISCOVERY ACCESSIBILITY

BRAND MISSION CULTIVATE CURIOSITY REVEAL THE MAGIC

IN EVERYONE OF DAILY LIFE

GROUP COMBINED STRENGTHS

[ QUALITY / TRUST / ADVICE / EXPERTISE / HUMAN / SERVICES & OMNICHANNEL MODEL ]
 QUEST FOR QUEST FOR
INDIVIDUALITY ESSENTIAL

DARE CARE
Self-fullfilment, discovery Serenity, simplicity
A UNIQUE CUSTOMER BASE
SUPPORTING A LEADING POSITION IN DATA-DRIVEN RETAIL

TOTAL CLIENTS1 COMMON CLIENTS1 TOTAL CLIENTS1 CUSTOMERS1

29M
25-49 YEARS.OLD
8M 16M
35-64 YEARS OLD
36M
COMMON DATABASES
AND CRM CAMPAIGNS
>100K INHAB. >20K INHAB.
DATA MONETIZATION
DIGITAL CUSTOMERS HOME (≥2 PERS.)
GROUP OPT-IN & GROUP DATA
MANAGEMENT PLATFORM

1 In France
ENHANCING CROSS-SELLING
VIA BEST-IN-CLASS CRM AND LOYALTY PROGRAMS

CROSS-FERTILIZATION
DATA MONETIZATION & DATA
OF DATABASES MANAGEMENT PLATFORM

+ BETTER CUSTOMER
360° CUSTOMER VIEW KNOWLEDGE & CARE

+
COMMON CRM TARGETED & CROSS-SELL OFFERS
LEVERAGING
CUSTOMER BASE CAMPAIGNS

+ NEW LOYALTY ECOSYSTEM

LOYALTY PROGRAMS
 FNAC DARTY CLIENT STICKINESS THROUGH UNIQUE LOYALTY PROGRAMS

EVOLUTION OF FNAC
MEMBERS SINCE 2015
(IN MILLIONS OF MEMBERS)

6.9
 Fnac’s loyalty program:
6.7 a strong asset: c.7M loyal
customers
 Loyal customers represented
64% of 2016 total Fnac sales
 Services offer acts
as loyalty program
 A wide panel of services:
credit and payment card,
premium delivery & aftersales services…

5.9

LOYALTY LOYALTY BREEDS

REPURCHASE CONSIDERATION
x2
2015 2016 2017
FNAC+, DARTY+:
BUILDING THE FUTURE LOYALTY PROGRAMS FOR THE GROUP

30D FREE 30D FREE

I SUBSCRIBE TO… €49/year €49/year

REBATES & ADVANTAGES

PROMOTIONS & PROMOTIONS
KEY ADVANTAGES
PRIORITY 30 DAYS
IN THE SUBSCRIPTION CHECKOUT TO CHANGE
BANNER YOUR MIND
DEDICATED
CALL LINES CONNECTED BUTTON
& AFTER-SALES FOR ALL PRODUCTS,
INCLUDING THOSE NOT BOUGHT AT DARTY

KEY ADVANTAGES
IN BOTH BANNERS FREE PREMIUM FNAC DARTY DELIVERY
 NEXT STEP: CREATING A CUSTOMER-CENTRIC ECOSYSTEM
FOCUSED ON SERVICES

INTERNAL EXTERNAL INTERNAL EXTERNAL

CONTENTS CONTENTS SERVICES SERVICES
PRODUCTS SERVICES

% VIP
PRIVATE SALES, MUSIC PRIORITY / SELF CONSUMER
« SUBSCRIBER CHECKOUTS FINANCE…
WEEKENDS »

SUBSCRIPTION DAILY USAGE USER EXPERIENCE DIFFERENTIATION

& & & &
REPEAT PURCHASE ENGAGEMENT PREFERENCE REVENUE
INVESTOR
DAY December 5th, 2017
OPEN
OMNICHANNEL
PLATFORM
STORE
NETWORK Benoît Jaubert,
Director of Retail
WHY STORES ARE KEY

THE STORE NETWORK IS THE CORNERSTONE OF THE FNAC DARTY OMNICHANNEL EXPERIENCE
WHY THE STORE NETWORK
HAS TO BE DENSE AND AGILE

THE STORE NETWORK IS THE CORNERSTONE MODULAR FORMATS ALLOWING

OF OUR OMNICHANNEL ASSETS PRODUCT HIGHLIGHTING

SCALE 700+ stores IN LARGE STORES IN STORES < 2,000 m²

Large number of references Best sellers with access

PROXIMITY 92% of the French population
Premium Brands Corners to full catalogue online
in the catchment area
(Ex: Devialet / Samsung)
AGILITY 6 formats from 60 to 6,000 m2

EXPERIENCE 180 stores digitalized

 IMPROVING THE EFFICIENCY
OF OUR SELLING SURFACES

Developing new Re-thinking services

Optimizing Rolling-out Developing
specialized stores: experience via
surface shop-in-shops B2B
Kitchen plan dedicated corners

EXAMPLE:
BORDEAUX LAC

Selling surface:
-28%
Turnover:
+10%
Sales/m²:
+53%
 FAST PACED FRANCHISE EXPANSION TO FUEL GROWTH

FRANCHISE SUCCESS OPENS CONSOLIDATE THE MARKET TO

GROWTH OPPORTUNITIES REINFORCE OMNICHANNEL REACH
Number of franchised stores

400+

Leverage attractiveness of Fnac and Darty brands

 Roll out existing concepts

200  Integrate small independents under our banners

100
Accelerate online sales

 When opening a new store1, over 50% of C&C

orders are made by customers who never order
on Fnac.com
2015 2017 Mid term
objective

1 Fnac Darty Study

REINVENTING
IN-STORE EXPERIENCE WITH A FOCUS ON SERVICES

Rethink stores as a lever

for omnichannel experience

Reduce in-store friction

(self-checkout, product availability)
> mid-term target of stores digitalized:
100% of the network vs. 180 stores today
SELF-CHECKOUT

Develop "store-to-web" (wishlist)

Connected "store as a device" (self checkout)

v
OPERATIONAL
EFFICIENCY
Olivier Theulle,
Operations Director
WHY ARE OPERATIONS KEY?

OMNICHANNEL TRANSFORMATION OPERATIONNAL

SETS NEW STANDARD FOR CLIENT EXCELLENCE DRIVES
EXPERIENCE CLIENT SATISFACTION

TECHNICAL PRODUCTS
Change in after-sales NPS Change in home delivery NPS

2014 2017
+8 pts +7 pts +5 pts

WEIGHT
OF D/D+1
DELIVERIES

30% 70%
2015 2017 2015 2017 2015 2017

WEIGHT
OF IN-STORE
PICKUP
25% 50%
FNAC DARTY:
BEST IN CLASS OMNICHANNEL ASSETS

OMNICHANNEL HOME DELIVERY AFTERSALES

SUPPLY CHAIN NETWORK NETWORK

>350,000 m² 80 centers 100 repair

10 centers bases

>200m units c.2m home 1.5m repairs

fulfilled per year deliveries per year per year

>10m parcels c.1,000 2,000 technicians

fulfilled per year delivery drivers & technical
advisors
A LEADING OMNICHANNEL
DELIVERY PROPOSITION

SAME DAY DAY +1

 1hr pickup for technical
products in 100 stores  In-store pickup
 2hr delivery in big cities

‘SMALL’ PACKAGES  1hr pickup in over

300 stores  Express delivery
in all of France
 2hr delivery in 50 cities

 1hr pickup in 300 stores
 Scheduled delivery in Paris
area and Lyon
HEAVY / BULKY
 Paris/Paris region
delivery
 Delivery in big cities
BEST IN CLASS OMNICHANNEL DELIVERY
EXAMPLE

ORDER CUTOFF FOR NEXT-DAY DELIVERY

NEW / JUST LAUNCHED

ILE-DE-FRANCE Midnight

PURE PLAYER 1 5.45 p.m. – 7.45 p.m.

(depending on areas)

REST OF FRANCE 6 p.m.

PURE PLAYER 2 2 p.m. – 4 p.m.

(depending on areas)
INTEGRATION WELL ON TRACK,
ALREADY DELIVERING STRONG RESULTS

AN EXPANDING AN OPTIMIZED A MORE EFFICIENT

OMNICHANNEL SUPPLY CHAIN AFTERSALES SERVICE
ECOSYSTEM

Cross-banner Distribution centers’ Improved repair service

click and collect mutualisation:
Wissous 2 transfer  One centralized spare
Fnac TV deliveries completed part distribution platform
and installations in France (vs. 12 previously)
Operated by Darty Warehouse IN PROGRESS
specialization  Specialization of the
(common inventories) workshop network, from
8 to 4 repair workshops

 Development of in-store
repair initiatives

Leverage Darty JUST LAUNCHED

After-sales to Fnac
for small domestic appliance
& TV

54
NEW INITIATIVES TO BUILD THE BEST OMNICHANNEL JOURNEY IN EUROPE

INCREASED CUSTOMIZED BEST OF

RESPONSIVENESS EXPERIENCE BOTH WORLDS
Increase same-day Launch time
and next-day definite Enhanced Click & Collect
deliveries and home home deliveries for editorial products services
repairs and home repairs and connected after-sales

Leverage existing capacity and develop

Reinforce our omnichannel differentiation ecosystem by opening our assets to 3rd parties
E-COMMERCE
Alexandre Viros,
Marketing and
e-commerce Director
 FNAC DARTY
AN E-COMMERCE CHAMPION

A SOLID OFFER

Large number of references online

-
Strong marketplace

OPERATIONAL EXCELLENCE

Mobile weight of traffic c.50% (incl. tablets) INVESTMENTS FOCUSED ON DIGITAL

-
Continuous increase
of conversion rates  Media mix shifting to digital:
from 30% to 50% over the last
5 years
STRONG RESULTS
 c.€70m CAPEX allocated
2nd web player in France to Digital over the last years
-
2 digit traffic & sales growth
TODAY’S CHALLENGE
CREATING THE NONLINE EXPERIENCE

DONE
TO BE DONE

E-COMMERCE

OMNICHANNEL

NONLINE
NEW DIGITAL INITIATIVES

ONGOING PERSONALIZATION USER EXPERIENCE MOBILE

MARKETING INITIATIVES

 New technology  Product and content  Performance  Applications

velocity to target customization
new clients  Customer journey  Chat Bot
 Predictive marketing simplification
 “Brandformance”  One click
marketing efficiency tool  Upselling
NEW OMNICHANNEL INITIATIVES

STRONG GROWTH OF OUR

Omnichannel sales represent 45% of online
OMNICHANNEL FOOTPRINT

ENHANCEMENT OF OUR
Time definite home deliveries
DELIVERY PROMISE

Fast checkout with vendor mobile devices

IN-STORE DIGITALIZATION
Electronic tag: price alignment, NFC
BECOMING A NONLINE BENCHMARK

NEW NONLINE UBIQUITOUS DIGITAL

CONSUMER STORE AS A DEVICE
EXPERIENCE PROGRAM
 Clients are mobile
 Fnac Darty
internal dedicated  Clients are digital native
team and process

LEVERAGING DIGITAL
TOOLS TO ENRICH
PHYSICAL CUSTOMER
NO FRICTION EXPERIENCE
PERSONALIZED
MARKETING
v
 Self-checkout in store  Data analytics ID
now offline and
 One-click payment online not only online
INVESTOR
DAY December 5th, 2017
INTERNATIONAL
OPERATIONSJean-Brieuc Le Tinier,
Chief Financial Officer
Charles-Henri de Maleissye,
CEO Fnac Vanden Borre
STRONG POSITIONS
IN WESTERN EUROPE

A DENSE OWN AN EXPANDING STRONG DIGITAL LEADING OMNICHANNEL

STORE NETWORK FRANCHISE NETWORK PLATFORMS & SERVICES

BENELUX 152 stores: Franchised Fnac.be + Logistics platforms

 10 Fnac kitchen Marketplace Click&collect
12% of 2016 sales business JV
 71 VdB Vandenborre.be + After-sales
Marketplace
 71 BCC
Bcc.nl

FRANCE & 310 stores1: 186 stores: Fnac.com + Logistics platforms

SWITZERLAND  94 Fnac  69 Fnac Marketplace After-sales
79% of 2016 sales  216 Darty  117 Darty2 Darty.com + Click&collect
Marketplace
Click&mag
Fnac.ch
AND OTHER TERRITORIES
Ivory Coast, Morocco,
Congo, Cameroon, Qatar IBERIAN Fnac.es + Logistics platforms
52 Fnac stores 3 Fnac stores
PENINSULA Marketplace Click&collect
9% of 2016 sales Fnac.pt + Click&mag
Marketplace

1 Including franchise operations in Qatar, Morocco, Congo, Cameroon and Ivory Coast
2 Including 1 Fnac-Darty store

Store network data as at September 30, 2017

WE ARE INTEGRATING OUR GEOGRAPHIES
IN OUR STRATEGIC ROADMAP

NETHERLANDS
 Continued transformation plan
 Focus on profitability MARKETPLACE Single marketplace hub to ensure
European access for vendors
BELGIUM
 Focus on services
 Network development
 Enlarged offer
FNAC.COM Single web front for our websites
SWITZERLAND
 Web development
 Expansion according to
opportunities
SPAIN
 Ambitious store network development plan
SERVICES Deployment of services policy
while adapting to local specificities
 Diversification: SDA corners
 Omnichannel growth

PORTUGAL
 Store network development
 Diversification: SDA corners INTERNATIONAL Common Asian sourcing
SOURCING (own brands) for all entities
 Marketplace development
FOCUS ON GROUP OPERATIONS IN BELGIUM
FNAC AND VANDEN BORRE INTEGRATION WELL ON TRACK

71 VANDEN BORRE 3 VANDEN BORRE

STORES KITCHEN
900 m² Franchised stores /
Mainly destination stores JV with FBD Group

Leader in Potential of
White Goods 50 stores

11 FNAC
STORES
2,000 m²
in city centers
Biggest
Editorial offer
in store
2 E-COMMERCE WEBSITES STRONG CLICK AND COLLECT
STRONG ASSETS FOR
FNAC VANDEN BORRE

OMNICHANNEL PROPOSITION LOGISTICS SETUP

Brand awareness Own logistic facilities to deliver

(Contrat de Confiance, carte Fnac) and install big appliances D+1

Omnichannel sales approach 2-hour paid delivery in almost all parts

Own engineers for home repairs
Multimedia Service extension
by subscriptions
of the country on Technical products
Free next-day delivery of orders placed
before 10.30 p.m. (incl. Sunday)

We will accelerate on time-definite deliveries

STRATEGIC INITIATIVES TO DEVELOP MARKET SHARE

BE THE BELGIAN
MARKET BENCHMARK ENLARGE OFFER ENLARGE NETWORK
FOR CLIENT SERVICE

Digitalization of all Common offers Network coverage

client-facing staff Fnac / Vanden Borre
(e.g. shops, deliveries, (e.g. shop in shops, digital
after-sales) gift cards, common
payment card)
"0% effort program"
to reinforce customer Marketplace ramp-up
experience
Cross-docking
with suppliers
improvement
Accelerated rollout of
Vanden Borre Kitchen
franchises
New Fnac store in
Luxembourg (2019)

Dropshipment based
on Group facilities
HUMAN
CAPITAL Frédérique Giavarini,
HR Director
OUR PEOPLE ARE OUR KEY ASSET
 ATTRACTIVE
RETAIL EMPLOYER

LARGE & DIVERSE WORKFORCE OUR PEOPLE CUSTOMER CENTRIC, EXPERT,

PASSIONATE & ENGAGED
25,000 employees in France & International 80% engagement rate1
18,000 in France,
with 13,000 customer touchpoints
(38% sales / 36% customer services
+11% supply chain)

SOCIALLY 60 YEARS OF HISTORY IN RETAIL

& ENVIRONMENTALLY - ENTREPRENEURSHIP
RESPONSIBLE OUR OUR & INNOVATION

COMMITMENTS HISTORY

CARE DARE
WELL-BEING AT AND THROUGH WORK PROVEN ABILITY TO EMBRACE
DISRUPTION AND ADAPT
1 Internal study
ORGANIZATION TO SUPPORT 1 GROUP, 2 BANNERS

1 GROUP – 2 BANNERS

RAPID EFFECTIVE UNIQUE HR AND

COLLABORATION HEADQUARTER TOP MANAGEMENT
ORGANIZATION IMPLICATION

DELIVERING OUR COMMITMENT:

NO BUSINESS DISRUPTION
€130m SYNERGIES CONFIRMED
OUR STRATEGIC IMPERATIVES

ANCHOR CHANGE MAINTAIN AN AGILE SECURE KEY COMPETENCIES

AND ENGAGE TO GROW ORGANIZATION TO SUPPORT BUSINESS

Develop Maintain a flexible and Develop competencies

an inclusive efficient organization on customer centricity,
environment where Digital & Services
people feel inspired Improve social climate
and committed And secure sourcing,
esp. on key roles
Leverage reward to
sustain a performing
organization
FINANCIAL
TRAJECTORY Jean-Brieuc Le Tinier,
Group CFO
TRENDS IN OUR MARKETS

CONSUMER WHITE EDITORIAL

ELECTRONICS GOODS PRODUCTS

Subject Increased penetration Continued decline of

to innovation cycles of connected usage physical disk and DVD

Telephony Small Domestic Resilience of books

expected to peak Appliances dynamic

Kitchen plan

FLAT LOW SINGLE DIGIT GROWTH DECLINING MARKETS

KEY TOP LINE DRIVERS

OMNI-
CHANNEL FRANCHISE DIVERSIFICATION SERVICES LOYALTY

BELIEFS Customers are Growth driver Targeting new markets Differentiating asset Ecosystem cornerstone
agnostic 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

KEY MARGIN DRIVERS

GROSS MARGIN DRIVERS TRANSFORMATION PLAN

Stable commercial policy (prices) Operation optimization:

continuing cost-cutting programs
Product and franchise mix effect
Synergies targeted: €130m confirmed
Higher margin from services
and marketplace

Purchasing synergies

Operating margin mid-term objective: 4.5-5%

Depending on market conditions

78
LIQUIDITY & USE OF CASH

STRONG CASH
GENERATION CAPEX
Controlled increase to
accompany strategic initiatives

STRONG LIQUIDITY M&A

Tactical acquisitions

FINANCIAL POLICY
PRUDENT FINANCIAL  Optimizing balance sheet
POLICY  Priority to growth over dividends

FOCUS ON GROWTH & DEVELOPMENT

INVESTOR
DAY December 5th, 2017
CONCLUSION
Enrique Martinez,
CEO
CONCLUSION

STORE AS A DEVICE

NONLINE
BEST VALUE FOR MONEY

GROWTH

OPEN OMNICHANNEL SERVICES

PLATFORM

LOYALTY ECOSYSTEM
CUSTOMER EXPERIENCE

VALUE CREATION – 4.5% TO 5% OPERATING MARGIN

INVESTOR
DAY December 5th, 2017
 Disclaimer

IMPORTANT NOTICE: By reading this presentation, you agree to be bound by the following limitations and qualifications: Certain information included in this release is not based on
historical facts but on forward-looking statements. Such forward-looking statements speak only as of the date of this presentation and Fnac Darty expressly disclaims any obligation or
undertaking to release any update or revisions to any forward-looking statements in this presentation to reflect any change in expectations or any change in events, conditions or
circumstances (or otherwise) on which these forward-looking statements are based. Such forward looking statements are for illustrative purposes only. Investors are cautioned that
forward-looking information and statements do not guarantee future performance and are subject to various known and unknown risks and uncertainties and other factors, many of
which are difficult to predict and generally beyond the control of Fnac Darty, and could cause actual results to differ materially from those expressed in, or implied or projected by, such
forward-looking information and statements. These risks and uncertainties include those discussed or identified in Chapter 6 “Facteurs de Risques” of the Fnac Darty 2016 registration
document which has been registered with the French Autorité des marchés financiers ("AMF") under n°R17-0387 on April 14th, 2017, and which is available in French and in English on
the AMF's website at www.amf-france.org and on Fnac Darty’s website at www.fnacdarty.com.

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