FULL-YEAR RESULTS

2018-19

Paris, 21 June 2019

L D L C G R O U P O V E R V I E W

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R O A D M A P A N D O B J E C T I V E S

I N V E S T O R N O T E B O O K

CONTENTS

3KEY FIGURES AT 31 MARCH 2019

€507.5mRevenues FY 2018-19

1,014employees

10retail brands

incl. 5

commercial

websites

40LDLC.com

stores in France

+ 2 in Spain (at 31 March 2019)

42,000 m2

dedicated logistics

platform

5countries covered: France / Belgium /

Luxembourg /

Switzerland / Spain

4

SPECIALISED MULTI-BRAND ONLINE AND OFFLINE DISTRIBUTOR

FRENCH LEADER ON THE ONLINE HIGH-TECH MARKET

BtoC BtoB

High-tech

Other

businesses

1998

1st store opening in Lyon

2002

Launch of LDLC.com Switzerland Lux & Belgium

Key milestones

1996

Foundation of LDLC.com

Since 20101990-1999 2000-2009

2001

Creation of LDLC.pro

2013

Development of physical retail store network

2016

Acquisition of Materiel.net

2017

Acquisition of Olys Group

(BIMP, GDA i-Tribu)

New head office

2018 Launch of LDLC.com Spain

Technical revamp of websites

2019-20 (plans) Launch of marketplace

Initial sales of SOLAARI & NEMEIO

including Maginea.com

until April 2019

5

BtoC, ENTREPRENEURIAL SPIRIT AND ENHANCED SERVICE

CUSTOMER SERVICE

PLEASURE

INNOVATIONSOURCING AND

LISTING

CROSS-CHANNEL

SALES OF PRODUCTS

& SERVICES

Online & stores

LOGISTICS

PROXIMITYSOLIDARITY

BOLDNESSPASSION

42,000 m2 dedicated logistics platform

8,000 parcels/day

1 R&D department

4 patents registered since 2016

1,700 partner brands

50,000 listed products

LDLC own PC brand

74 stores (31/03) incl. 40 LDLC.com stores in

France

11 million visitors/month

Winner of “Customer Service of the Year”*

award

5 years in a row

A VAST FAN COMMUNITY

1,610,000 685,000 195,000 * Technical Product Retail category - BVA Group

survey - Viséo CI - May to July 2018.

6

BtoB, AN OFFERING STRENGTHENED THROUGH THE

ACQUISITION OF OLYS GROUP

▪ Designer of global solutions for public and

private enterprise

▪ 2 facilities in Limonest (Rhône - 69) and since

early 2018 in Gennevilliers (Hauts-de-Seine - 92)

▪ Dedicated 80-strong BtoB taskforce

▪ Apple distributors for business and

retail customers (60%) – No. 1 in France

▪ Strong brand recognition in the education market

▪ 16 branches including 11 Apple Premium Reseller stores

▪ 200 employees

TARGET REVENUES OF AROUND €300M

7

STRONG SYNERGY BETWEEN ONLINE AND OFFLINE BUSINESSES

ESTABLISH A CHAIN OF AROUND 100 STORES

Ramp-up of store openings: 45 LDLC.com stores in France (at 30 June 2019)

LDLC.COM STORES

LDLC.COM STORES, BRANCHES

MATERIEL.NET CONCEPT STORES

BIMP STORES, APPLE PREMIUM RESELLER

BIMP STORES, APPLE AGREED RESELLER

L’ARMOIRE DE BÉBÉ STORE

IN FRANCE:- in FY 2018-19: +11 LDLC.com stores - since 01/04/19: + 5 LDLC.com stores

IN SPAIN:Opening of 2 LDLC.com stores(Barcelona and Madrid)

8

MULTIPLE AWARDS FOR OUR CUSTOMER SERVICE DEPARTMENT

Voted Customer Service 2019 for the 5th year running(BVA Group survey - Viséo CI - May-July 2018)

• 100% of emails answered within 1 business day

• 15 seconds: average waiting time before speaking to

an adviser

• 100% of answers on social media

2 Qualiweb Trophies in 2019(Cocedal survey among 250 companies in Q4 2018)

• Qualiweb Trophy 2019

No. 1 for customer relations via email

• Qualiweb E-commerce Trophy

No. 1 for customer relations in the Specialised

Retail category

over 1,300 calls

over 1,000 emails

over 120 chats

over 150 social network interactions

DAILY KEY FIGURES (Group)

9

BtoC, OTHER BUSINESSES

• Launch of website May 2015

• 7,500 listed products on the website and 3,500 in the store for children aged 0-3

• 2018-19 revenues€2.8m (up 71%)

• 71,000 fans on Facebook

• 44,000 followerson Instagram

SUCCESSFUL FIRST YEAR FOR THE CONCEPT STORE

• 1st store opened in Limonest (near Lyon) in April 2018

• 500 m² of sales space

• 3,500 listed products

• Additional service: advice, assembly, workshops

• ~25% of 2018-19 revenues, in line with targets

1010

Three logistics platforms

• Saint-Quentin-Fallavier (Isère - 38): 21,000 m2 warehouse

capacity

• Nantes (Loire-Atlantique - 44): 18,000 m2 warehouse

capacity

• Gennevilliers (Hauts-de-Seine - 92): 3,000 m2 warehouse

capacity

Over 200 employees in procurement and logistics

Customer service, assembly, repair

8,000 parcels handled per day on average

Proprietary ERP systems

INTEGRATED LOGISTICS SOLUTIONS THROUGH THREE

COMPLEMENTARY PLATFORMS

STRONG SYNERGIES BETWEEN LDLC.COM AND MATERIEL.NET

PLATFORMS

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CONTENTS

12

HIGHLIGHTS OF FY 2018-19

01

02

Challenging conditions for most of the year: Intel processor supply issues,

wait-and-see attitude from gamers (Nvidia), impact of “yellow vest”

movement

Strong ramp-up in store openings:

11 new stores in France (+38%)

launch of operations in Spain via 2 stores in Madrid & Barcelona

03 Investment in BtoB business: integration of Olys personnel, creation of a

unit in Gennevilliers: LDLC.pro sales force and automated logistics

platform

04 Launch of new web platforms for Materiel.net and LDLC.com (new

features and purchase optimisation)

05 Ramp-up of the R&D unit with development of a lightsaber (www.solaari.com)

and customisable keyboard (www.nemeio.com)

13

2018-19 REVENUES OF €507.5M

BREAKDOWN OF REVENUES BY BUSINESS LINE

49.3% BtoC (excl. stores)

16.9% Stores

32.0% BtoB

1.8% Other

* Excluding impact of applying new IFRS 15

IN €M 2018-19 2017-18* Ch. %

BtoC 335.9 340.1 -1.3%

- LDLC stores 59.9 53.0 +13.1%

- BIMP BtoC 26.0 - -

BtoB 162.2 120.7 +34.4%

- BIMP 39.1 - -

Other 9.3 11.2 -17.0%

Total revenues 507.5 472.1 +7.5%

14

QUARTERLY REVENUES

71.7

85.894.3

83.3

34.7 37.5

48.940.7

2.6 2.1 2.6 2.0

BtoC

BtoB

Autres

Q1 2018-19

Q2 2018-19

Q3 2018-19

Q4 2018-19

IN €

M

109.1 125.5 145.8 126.6

• BtoC: confirmed reversal of trend in Q4

• 3.3% YoY growth in Q4

• Trend confirmed in April & May

• BtoB: driver of full-year growth

• Successful integration of Olys

• BtoB revenues up 34.4% YoY (up 2% at

constant consolidation scope)

• Slight impact from discontinuation of mining

products in Q4

+8.2% +9.4% +3.4% +9.5%

Q4 return to growth in BtoC business

15

MARKET INDICATORS 2018-19

(total new BtoC & BtoB accounts)

Average basket value

+13%

2018-19

2014-2015

2015-16 2016-17

IN € 389296 319 344

2017-18

321

410,000 new customers

16

GROSS MARGIN

IN €M 2018-19 2017-18

Revenues 507.5 472.1

Gross margin 86.1 80.3

% OF

REVENUES

17% 17%

GROSS MARGIN REMAINS STRONG

• Impact of store sales offset

• Procurement synergies with Materiel.net

2017-18 2018-19

• Increase in gross margin rate to 17.6% in H2

versus H1 (16.3%) and H2 2016-17 (17.3%)

17

UNDERLYING EBIT

• Numerous growth projects in H1 (new websites, Spain, BtoB in Paris area, etc.) impacted expenses

• Sharp H2 improvement in gross margin and EBITDA

IN €M 2018-19%

of rev.

H1

2018-19

H2 2018-

192017-18

%

of rev.

Revenues 507.5 - 234.6 272.9 472.1 -

Gross margin 86.1 17.0% 38.2 47.9 80.3 17.0%

Gross margin rate 17.0% 16.3% 17.6% 17.0%

Other purchases and external costs (30.0) 5.7% (14.5) (15.5) (25.9) 5.5%

Staff costs (50.9) 10.0% (24.5) (26.4) (36.1) 7.6%

Miscellaneous taxes (2.6) 0.5% (0.9) (1.7) (2.3) 0.5%

Other expenses (0.6) 0.1% (0.2) (0.4) (1.3) 0.3%

EBITDA 2.0 0.4% (1.9) 3.9 14.7 3.1%

Depr./amort. and provision charges (6.2) 1.2% (2.5) (3.7) 4.4 0.9%

Underlying EBIT (4.3) (0.8%) (4.4) 0.1 10.3 2.2%

18

SUMMARY INCOME STATEMENT

IN €M 2018-19 % of rev. 2017-18 % of rev.

Revenues 507.5 - 472.1 -

EBITDA 2.0 0.4% 14.7 3.1%

Underlying EBIT (4.2) (0.8%) 10.3 2.2%

Other oper. income and expenses (0.1) (1.6)

EBIT (4.3) (0.8%) 8.7 1.8%

Net financial income/(expense) (1.9) - (1.1) -

Earnings before tax (6.1) (1.2%) 7.7 1.6%

Income tax 1.8 0.4% (2.3) (0.5%)

Net income/(loss) (4.3) (0.8%) 5.4 1.1%

19

CASH FLOW STATEMENT

IN €000 2018-19 2017-18*

Free cash flow 903 12,260

Change in working capital 2,485 21,168

Cash flow from operating activities 2,975 30,887

Cash flow from investing activities (11,491) (23,028)

Cash flow from financing activities (5,164) 11,980

Change in cash (13,679) 19,840

Cash at start of period 30,143 10,303

Cash at end of period 16,464 30,143

• Stable cash position vs. 30 September 2018• Major prior year investments in the head office (€23.5m) and OLYS Group acquisition (€15m)

Cash balance of €16.5m

* 2018 data restated for capitalisation of head office (presented net of finance lease)

20

BALANCE SHEET STRUCTURE (INCLUDING OLYS GROUP)

ASSETS - IN €M 31/03/2019 31/03/2018*

Non-current assets 105.6 98.1

Inventories and work-in-

progress63.7 83.3

Trade receivables 27.9 24.6

Other receivables 16.8 16.9

Cash and cash equivalents 17.3 30.8

Current assets 125.8 155.6

Total assets 231.4 253.7

EQUITY AND LIABILITIES - IN €M 31/03/2019 31/03/2018*

Shareholders’ equity 53.2 60.7

Loans and borrowings 30.7 71.6

Non-current liabilities 38.8 79.1

Short-term borrowings 48.1 11.5

Trade payables 64.5 78.6

Other payables and provisions 26.8 23.8

Non-current liabilities 139.4 113.9

Total equity and liabilities 231.4 253.7

NET DEBT: €61.5M INCLUDING AROUND €33M RELATED TO REAL ESTATE ASSETS

* Balance sheet data at 31/03/18 updated as per Olys Group purchase price allocation finalised within 12 months following acquisition date

21

UPDATE ON GROUP DELEVERAGING PROGRAMME

Sale of Nantes warehouse for €11.3m (signed 12 June 2019)

- The sale will generate around €6.1m in cash and reduce debt by €4.4m

01

Withdrawal from LDLC head office finance lease following 2017 acquisition

by September 2019

- capitalised in July 2017 at a gross value of €22m

02

Continued efforts to optimise working capital 03

L D L C G R O U P O V E R V I E W

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I N V E S T O R N O T E B O O K

CONTENTS

23

01

02

03

04

05

OUR 2019-20 ROADMAP

Development of BtoB focusing

on Paris area

Improvement in EBIT marginOptimisation of full-year expenses

Sustained pace of store openings

Acquisition of strong foothold in Spain

Strengthened leader position

in the online high-tech market

06

Innovation and diversification of our offeringNew products (universal keyboard) and marketplace

24

BOTTOM-LINE GROWTH INITIATIVES ROLLED OUT IN H2 2018-19

Reduction in staff costs and external expenses

• Increased outsourcing after completion of development projects

• Expected reduction of around €3.5m from initiatives implemented in H2 2018-19

01

… and leveraging a more buoyant business activity on all our markets

02

Positive impact of synergies derived from merger: web, logistics, etc.

(savings of around €150,000/month already impacting H2 2018-19 financial statements)

03 Review of contractual terms, communication, streamlining of advertising (target

savings of €1.2m/year)

25

LAUNCH OF A MARKETPLACE TO SUPPLEMENT THE IT AND

HIGH-TECH OFFERING

Expand the product offering in related categories: IT, image & sound, telephone &

car, games & leisure, connected devices and stationery01

03

Target: market over 100,000 additional products by March 2020

by admitting a carefully screened selection of trusted vendor partners, who will

themselves benefit from the additional visibility and visitor traffic made available

through LDLC.com.

02

Launch: Q4 2019

Selection of vendor

partners underway

CONTENTS

L D L C G R O U P O V E R V I E W

F Y 2 0 1 8 - 1 9 R E S U L T S

R O A D M A P A N D O B J E C T I V E S

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SHARE CAPITAL

TOTAL NUMBER OF SHARES AT 21 MAY 2019: 6,322,106

40.21% De la Clergerie family*

1.95% Treasury shares

4.87% Keren Finance

52.97% Public float

Based on disclosures made over the past 12 months

De la Clergerie family

Laurent de la Clergerie: 19.40%

Caroline de la Clergerie: 9.94%

Olivier de la Clergerie: 9.74%

Suzanne de la Clergerie: 1.13%

* No action in concert: this segment includes members of

the De la Clergerie family

28

SHARE PRICE MOVEMENTS

• Euronext Compartment C*

• FR00000755442 LDL

• Market capitalisation: €37m

• 1 year high: €20.35

• 1 year low: €5.50

Analyst tracking the share:

Gilbert Dupont/Ning Godement

Publication after market close

• Q1 REVENUES: 25/07/2019

• Q2 REVENUES: 29/10/2019

• H1 RESULTS: 12/12/2019

• Q3 REVENUES: 30/01/2020

• Q4 REVENUES: 28/04/2020

• FY RESULTS: 18/06/2020

* Planned transfer to Euronext Growth submitted to 01/07/2019 AGM for approval

2019-2020 PUBLICATIONS CALENDARSTOCK MARKET INFORMATION

READ MORE AT WWW.GROUPE-LDLC.COM