Aucun titre de diapositive

1
Presentation of the 1999 results
2
A year of strategic progress and a strong
increase in earnings
3
Key figures for 1999

• Sales ?18.9 bn (FF 124 bn)

Operating income ?1.2 bn (FF 7.9 bn)
Net income ? 625 m (FF 4.1 bn)
Net incomebefore goodwill ? 708 m (FF 4.6 bn)
net income before goodwill
4
Contents

• The Groups development in 1999 (slide 4)
• Analysis of 1999 earnings (slide 39)
• The challenges (slide 58) From a rationale based
  on the of offer to a demand rationale
• Continued expansion of the Group
• Inter-company co-operation
• Luxury goods
• E-business
• Human resources
• Outlook (slide 71)

5
THE DEVELOPMENT OFTHE GROUP IN 1999
6
1999 characterised by an ongoing strategy
founded on growth and profitability

• Strong international expansion
• Sustained growth in each division
• Entry into luxury goods
• Acceleration in e-business
• Increased investments
• Improved operating performance

7
The economic environment in 1999

• French consumers confidence confirmed
• Sustained growth in consumption in Europeand the
  United States
• Progressive recovery of the European construction
  market
• A clear recovery in Asia

8
PURSUIT OF OUR STRATEGY FOUNDED ON GROWTHAND
PROFITABILITY
9
Strong international expansion

• Strengthened positions in Europe outside France
• Sales up 18.1
• Expansion into new territories
• Asia and Latin America
• Nearly all investments outside France
• FF 18bn in Gucci (subscription to the capital
  increase)
• FF 4.5 bn in financial investments
• FF 1.7 bn in operating investments, up 45

10
Strong international expansion

• 1999 international sales FF 59.6 bn
• 48 of total vs. 44.2 last year
• up 24.4

11
Sustained growth in the Retail division

• 51 stores opened in 1999 representing more than
  63,000 m² of additional selling space
• 16 Fnac and Conforama stores opened abroad and 4
  in France
• 20 Fnac Junior, Fnac Service, Made in Sport
  storesand launch of the Nuitéa concept
• 21 affiliated Conforama stores acquired
  representing 63,200 m² of retail space
• Printemps de l'Homme opened 1,500m² of
  additional retail space
• ? 130,000 m² new sales space

12
Sustained growth in the Retail division
Fnac in Brazil
Nuitéa store
13
Sustained growth in the Retail division- Redcats

• New Redcats catalogues introduced
• Real Comfort
• S for Sport
• Vertbaudet Portugal
• Redoute US / Sweden / Austria

• Crossing of formats continues with the openingof
  8 stores in France

14
Sustained growth in the Retail division - Redcats
GROWTH

• On-going investments in information systems
• Integration of E-commerce as a complementary
  retail channel
• Introduction of a cost-cutting program
• Restructuring of the Redoute store network
• Strengthening of Management
• Reinforced marketing teams

15
Sustained growth in the Credit and Financial
Services division

• Strong growth in the number of Printemps and Fnac
  store cards
• Successful launch of the Challenger card
• Introduction of inter-operability of Group
  payment cards
• Start of the international expansion
• Active in 9 countries
• Acquisition of a banking status with the
  controlof the Banque Générale du Commerce
• Opening of 9 Finaref counters in 1999

16
Sustained growth in the B-to-B division

• Rexel
• 17 acquisitions during the year(annual sales of
  FF 2.2 billion)
• 70 branches opened in 1999
• Product range expanded
• Improved services (catalogues, showrooms)
• Pinault Bois Matériaux
• Commercial plan implemented
• Own brands developed (Silverwood and Cerland)
• Acquisitions programme resumed (annual salesFF
  500m),in order to expand presence in France

17
Sustained growth in the B-to-B division
18
Sustained growth in the B-to-B division

• Guilbert
• External growth in Holland (Kantic), Portugaland
  Germany (Hutter) annual sales FF 800 m
• Sales force expanded in Spain and Belgium
• Product offering expanded
• A new own brand Niceday by Guilbert
• CFAO
• New exclusive distribution contracts
• Acquisitions annual sales FF 248 m

19
Sustained growth
Further market share gains in France
20
Sustained growth
Market share gains outside France
Growth differential with the market
Company
Sector
Fnac Belgium Photo 4.0 Conforama
Switzerland Furniture 8.3 White
goods 16.1 Brown goods (inc. PCs, telecom)
44.5 Conforama Portugal Furniture
0.9 White goods -6.2 Brown goods (exc.
PCs, telecom) 0.2 Guilbert Spain Office
supplies and equipment 12.5 Guilbert
Belgium Office supplies and equipment 18.5
21
ENTRY INTO LUXURY GOODS
22
Strategic alliance with Gucci

• 3rd largest luxury group in the world
• Strong management that shares our values
• Significant opportunities for growthin a
  fragmented sector

23
Gucci, a world-wide brand name

• Acceleration in 1999 revenues
• Q1 7.7
• Q2 10.1
• Q3 20.9
• A balanced breakdown of sales by region in 99
  (38 in Asia, of which 20 in Japan 30 in
  Europe and 32 in Americaand Rest of World)
• 131 Gucci stores, accounting for 64 of 99 sales
• Strong development of new product lines jewelry
  (2.8 of sales), ready-to-wear (14.8 of sales)
• from February to October

24
Creation of a multi-brand luxury products group

• Acquisition of Sanofi Beauté, 23rd December
• Including YSL Couture and YSL Beauté

M YSL Couture YSL Beauté 99 Sales 88.1 594 99
Op. income 1.0 33
Acquisition of 70 of Sergio Rossi, Italian
leaderin luxury shoes for women 99 Sales
59.9 million 99 Op. income 5.5 million
25
ACCELERATIONIN E-BUSINESS
26
The e-business environment in France
Sales of physical products ?103 million
Computer products
17
Educational/entertainment
46
Textiles and clothing
14
Furnishings/home appliances
9
Food Flowers Other
13
(source BCG)

• Percentage of households with PCs 26 (source
  BCG)
• Internet penetration rate 12 of the population
  at the end of 99, vs. 7 at the end of 98
  (source BCG)
• 10 of surfers have bought on line (source
  Benchmark Group)
• 3 of companies in BtoB sell on line (source
  Spectrum/NOP)

Source BCG
27
PPR, a pioneer in e-commerce
Over 45 trading sites worldwide
boutiqueblanche.com fnac.com new Redoute
sites Mobile Planet brylanehome.com kingsizemen.co
m mageos.com petitsetgrands.com chadwicks.us
conforama.com printemps.fr eveiletjeux.fr redoute.
co.uk redoute.se kertel.com webco.fr fusewarehouse
.com
ellos.dk cyrillus.com somewhere.fr
redoute.fr ellos.se
ellos.no ellos.fi fnac.fr
PPR pioneer and a leader in European e-commerce
28
PPR, a pioneer in e-commerce
Webcamer.com
29
Rapid results in e-commerce

• High penetration
• Sales quintupled in 1999 ?37.8 million
• Of which 53 in B-to-C and 47 in B-to-B
• Leading sites
• Fnac and Redoute are amongst 5 most popular
  e-commerce sites (source Benchmark Group)
• The Fnac site was awarded the milia dor from the
  international multimedia and internet exhibition
• Market shares in French e-commerce (source BCG )
  
• Nearly 40 in books
• 25 in textiles

30
Inter-company developments stepped up

• PPR Interactive created in October 99
• Mageos.com launched in October 99
• Simple and accessible, targeted at the general
  public
• Distributed free of charge in 500 PPR retail
  outletsin France
• Launch of themed portal petitsetgrands.fr, for
  parents with young children
• Investment in new distribution methods
  groupedpurchasing, shopbots...

31
Investments in complementary sites

• Tradematch.com, on-line tendering
• Letsbuyit.com, European site of co-buying,
  consumer to business
• Hortus-soft.com, childrens interactive magasines
  
• Maximiles.com, leading French on-line loyalty
  program
• Robopost.com, specialised in the distribution of
  classified advertising on-line

32
INCREASED INVESTMENTS
33
Increased investments

• Operating investments continued to increase
• FF 3.5 bn in 1999, up 45
• of which 63 in innovation and development and
  31in logistics and information systems
• Major projects Fnac Ariane
• Rexel Logistics and IS
• Guilbert UK logistics Navy
  project

34
Increased investments

• Substantial financial investment FF 9
  bn(excluding subscription to Gucci capital
  increase)
• Ongoing acquisitions programme, particularly at
  Rexel Conforama
• Brylane stake raised to 100 due to a takeover
  bid launched in March FF 1.3bn
• Exchange offer for Guilbert raising the stake to
  91.6 (purchase of own stock for FF1.5 bn)

35
IMPROVED OPERATING PERFORMANCE
36
Improved operating performance
Gross margin improvement
Change
1999
1998
(points)
RETAIL
42.1
42.1

BUSINESS TO BUSINESS
26.6
26.2
0,4
LUXURY GOODS
66.2
NA
INTERNET
38.2
46.4
-8.2
TOTAL
36.0
34.4
1.6
37
Improved operating performance
Productivity gain
Change(points)
PAYROLL COSTS /GROSS MARGIN
1999
1998
RETAIL
34.2
34.2

BUSINESS TO BUSINESS
45.5
45.7
-0.2
LUXURY GOODS
21.9
NA
INTERNET
61.1
81.0
-19.9
TOTAL
37.4
38.7
-1.3
38
Regular growth of key indicators
excluding non-recurrent items
39
Our growth and investment strategy secures our
future
EBITDA margin
40
ANALYSISOF 1999 RESULTS
41
Operating performance
In FF million
1999
1998
Change
Sales
124,052
108,329
14.5
Costs of goods sold
(79,410)
(71,019)
11.8
Gross income
44,642
37,310
19.7
Gross margin
36.0
34.4
Employee costs
(16,689)
(14,430)
15.7
37.4
38.7
Productivity
Other operating income and expenses
(20,051)
(16,903)
18.6
Operating income
7,902
5,977
32.2
Operating margin
6.4
5.5
42
Evolution of sales
InternalgrowthFF 4 478 m
ExchangeRateeffectFF 1 208 m
ChangeinstructureFF 10 037 m
1999SalesFF 124 052 m
1998 salesFF 108 329 m
43
EBITDA performance
1999
1998
Change
In FF million
Operating income
7,902
5,977
32.2
Amortization Depreciation
1,779
1,400
EBITDA
9,681
7,377
31.2
44
EBITDA margin
45
Financial performance
1999
1998
Change
In FF million
Operating income
7,902
5,977
32.2
Net financial expenses
(423)
(415)
1.9
Non-recurring items
(175)
(89)
Income taxes
(1,758)
(1,599)
9.9
Tax rate
25.1
30.8
Employee profit-sharing
(290)
(283)
2.5
Total net income
5,256
3,591
46.4
Margin
4.2
3.3
46
Evolution of net income
In FF million
1999
1998
Change
Total net income
5,256
3,591
46.4
Share in earnings of equity affiliates
907
831
9.1
Amortization of goodwill
(588)
(451)
Net income of consolidated companies
5,575
3,971
40.4
129.8
Minority interests
1,471
640
Attributable net income
4,104
3,331
23.2
47
Contribution of the Credit and Financial Services
division
1999
1998
Change
In FF million
New loan production
25,420
23,450
8.4
Average outstanding loans
24,633
21,882
12.6
Net income (Group share)
874
785
11.3
48
Group performance
In FF million
1999
1998
Change
Attributable income
4,104
3,331
23.2
Goodwill - Group share
543
381
Net income before goodwill
4,647
3,712
25.2
49
Per share information
In FF
1999

1998
Change
Number of shares
120,962,293
117,966,409
2.5
Diluted eps before goodwill
39.08
31.50
24.1
Diluted eps after goodwill
34.59
28.27
22.4
Net dividend
9.45
11.68
23.6

subject to approval by the shareholders meeting
of May 23, 2000
50
Free Cash Flow increase
In FF million
1998
1999
Change
9,528
7,192
32.5
Operating cash flow
Other
(1,215)
(1,971)
Cash flow
8,313
5,221
59.2
Change in working capital
256
178
Capital expenditure
(3,197)
(2,272)
40.7
Free cash-flow
5,372
3,127
71.8
51
Change in net debt
In FF million
Net debt as at 31/12/98
(20,216)
Free cash-flow
5,372
Net financial investments
(9,039)
Other
1,374
of which changes in Group structure
1,349
Net debt as at 31/12/99
(22,509)
Reminder investment in Gucci of FF 18 bn
neutralized by the Gucci cash
52
Consolidated balance sheet
In FF million
1999
1998
Change
Fixed assets
59,892
40,462
48.0
Working capital
8,472
7,311
15.9
Shareholders' equity(1)
41,686
24,322
71.4
Provisions
4,169
3,235
28.9
22,509
20,216
11.3
Net debt
20.4
(1) of which Group share
24,373
20,241
53
Debt structure (based on average net debt)
In FF million
26 167
22 153
54
Evolution of the financial structure
Gearing
In FF million
55
Financial ratios
1999
1998
1997
Interest cover
9.6
6.2
6.7
Debt cover
2.7
3.9
3.5
ROE
16.8
16.5
15.1
(1)
ROCE
14.1
13.9
13.7
Operating income supplier discounts / net
financial expenses
Net debt / Cash flow
(1) Before non-recurring items
56
A new presentation for year 2000

• Application of the new accounting methods
• Full consolidation of the credit financial
  services division
• Supplier discounts and employee profit-sharing
  incorporated in operating income
• Restatement of lease commitments

57
Proforma income statement
Proforma 1999
In FF million
1998
1999
Change
Method 2000
Sales
122,827
127,796
4.0
136,579
Cost of goods sold
(78,874)
(81,360)
3.2
(82,772)
Gross income
43,953
46,436
5.6
53,807
Gross margin
35.8
36.3
39.4
Operating income
7,746
8,462
9.2
10,449
7.7
Operating margin
6.3
6.6
Excluding YSL Couture, YSL Beauté and Sergio
Rossi
Including YSL Couture, YSL Beauté and Sergio
Rossi
58
Proforma 1999 sales operating margin by
division - method 2000
Business to BusinessMargin 6.6
Retail Margin 5.4
42.7
45.4
8.4
3.3
Credit and Financial Services Margin 32.4
Luxury goods Margin 15.8
0.2
Internet Margin - 34.8
59

• THE CHALLENGES

60
The challenges Move from a rationale based on
the offer to a demand rationale customer service
Customer knowledge

the reactivity and flexibility of e-commerce

Capacity to adapt to customer needs
61
1st challenge Continued development of the Group

• Strategy for growth and increased profitability
• Organic Growth
• Strengthen customer databases
• Introduce new catalogues
• Open new stores
• Gain market shares
• Innovation
• Sustained investment in information and logistics
  systems
• Acquisitions

62
1st challenge Continued development of the Group

• Strategy for growth and increased profitability
  resolutely oriented outside France
• Continue development in Europe and the US
• First steps in Poland and Italy
• Strengthen presence in Latin America and Asia

63
2nd challenge Acceleration of inter-company
co-operation

• Management team strengthened with the appointment
  of Yves Barraquand as Deputy managing director
• Services and logistics
• Customer relationship management
• Inter-operability of store cards
• Mutualization of the mail-order infrastructure
• Gift vouchers (Kadeos)
• After-sales service

64
3rd challenge Luxury goods
Apply Guccis winning formula to other brands

• Manage the integration of Yves Saint Laurentand
  Sergio Rossi
• Develop synergies in the expertise of the
  different brands (Perfumes, Shoes, Watches,
  Jewelry)
• Continue the acquisitions policy (over 2
  billion in cash)

65
4th challenge Click Mortar strategy

• Appointment of François-Henri Pinault as Deputy
  Managing Director to accelerate our e-business
  strategy
• In BtoC use the "mortar" infrastructure (supply
  chain, call center) to develop more rapidly
  e-commerce to be present throughout the internet
  chain
• In BtoB develop customer services and win new
  regionsor new customers while building loyalty
  ever more strongly

66
4th challenge Click Mortar strategy In
BtoC be present throughout the internet chain
(1)

• Sale of PCs and access equipment (TV, telephones,
  ) in all distribution channels
• Internet access with mageos.com
• Development of portals to create traffic
• Development of a clickmortar strategy in all
  companies
• development of sites at marginal cost, with
  support from the marketing and logistics
  capacities of the companies
• strengthen customer relations with complementary
  services on the web

67
4th challenge Click Mortar strategy In
BtoB customer service and win new customers
(2)

• An intranet-extranet offer, to improve loyalty
  for corporate accounts
• strong growth in revenues recently and new
  customers
• development of personalised services
• Launch of new sites to provide a SOHO offer
• Presence on sector and exchange portals

68
4th challenge The opportunities of Click
Mortar

• Widen the customer base
• be present outside the catchment area of the
  stores (catchment area 25 million people for
  Fnac, e-commerce potentially available for all
  the French population and French-speakers outside
  France)
• attract new customer segments (20-40 of Redcats
  sites customers are non mail-order customers)
• develop international customer base (more than
  25 of revenues of fnac.com)
• Expand the choice of products and services(more
  than 1m editorial references on the fnac site)
• Nurture closer and stronger relations with
  customers (Guilweb personalised catalogue,
  secure order system on extra or intranet)

69
5th challenge The opportunities of "Click
Mortar" (2)

• A unique advantage with our store cards
• 8 million holders
• Development of an on-line of financial services
• On-line recruitment

70
5th challenge Human resources (1)

• Belonging to the Group
• 2000 share ownership plan Value in Action (VIA)
• Stock-options 600 managers in 1999
• Agora integration seminars (4xpa)
• Jobs and skills
• Manage the reorganizations (Ariane, Rexel,
  France, SAV, Sner)
• Attract the best
• 700 managers recruited worldwide each year
• of which 200 young graduates
• in new businesses e-commerce and marketing

71
5th challenge Human resources (2)

• International mobility
• 50 of employees outside France
• 250 expatriates in 1999, x2 in 2 years
• Mobility
• Inter-company 150 managers in 1999 (x 10 in 4
  years)
• Inter and intra company 1,400 employees in 1999
• Training Univercité
• 3 programmes (Umap, Uknow, Unext)
• 200 top managers in 1999

72
Outlook Objectives for 2002

• Sales of over FF 100 billion from the Retail and
  Luxury Goods divisions
• Growth in sales of 50 from 1999 to 2002
• Operating profit margin of 7.5(excluding Credit
  Financial Services division)

73
PPR Multiplier of talents
Multi-specialistGroup
Multi-channel Group
Multiplier of talents
N1 specialiseddistribution in Europe
Multi-brandGroup
Multi-services Group
74

• Contact us
• Corporate site pprgroup.com
• with 2 dedicated sites Press Web Finance Web

75

• APPENDIX

76
1999 sales breakdown by product
Buildingmaterials 5.3
Others 8.3
Apparel Accessories 22.9
Office suppliesand equipment 5.8
Household equipment 13.5
Electrical equipment28.6
Cultural leisure products 15.6
77
1999 sales breakdown by division
Business to business division46.0
Retail division 49.6
Luxury Goods division 4.2
Internet 0.2
78
Strong international expansion Share of
international sales
FNAC

• CONFORAMA

REDCATS
79
Strong international expansion Share of
international sales

• REXEL

GUILBERT
80
Sales by company
In FF million
1999
1998
Change ()
Printemps
5,258
5,074
3.6
Conforama
12,205
10,237
19.2
Redcats
28,568
26,905
6.2
Fnac
15,448
13,946
10.8
Boutiques Concepts
163
NA
Retail
61,642
56,162
9.8
Rexel
36,394
32,484
12.0
Pinault Bois Matériaux
6,690
6,296
6.3
Guilbert
7,198
6,510
10.6
CFAO
6,900
6,967
-1.0
Business to Business
57,182
52,257
9.4
Luxury Goods
5,151
NA

x 5
45
Internet
248
Inter-company sales
(171)
(135)
Total
124,052
108,329
14.5
consolidation of Gucci sales for 9 months,
February to October 1999
81
Operating income by company
In FF million
Change ()
1999
1998
Printemps
151
106
42.5
Conforama
1,179
947
24.5
Redcats
1,217
1,119
8.8
Fnac
691
619
11.6
Boutiques Concepts
(32)
NA
Retail
3,206
2,791
14.9
Rexel
2,066
1,771
16.7
Pinault Bois Matériaux
346
272
27.2
Guilbert
591
503
17.5
CFAO
653
641
1.9
Business to Business
3,656
3,187
14.7
Luxury Goods
1,141
NA
Internet
(96)
NA
(21)
Holding companies
(5)
NA
20
Total
7,902
5,977
32.2
82
EITDA by company
In FF million
Change ()
1999
1998
Printemps
333
277
20.2
Conforama
1,355
1,087
24.7
Redcats
1,514
1,379
9.8
Fnac
957
871
9.9
Boutiques Concepts
(19)
NA
Retail
4,140
3,614
14.6
Rexel
2,337
2,012
16.2
Pinault Bois Matériaux
510
422
20.9
Guilbert
695
583
19.2
CFAO
731
715
2.2
Business to Business
4,273
3,732
14.5
Luxury Goods
1,319
NA
Internet
(71)
NA
(14)
Holding companies
20
NA
45
Total
9,681
7,377
31.2
83
Gross margin productivity since 1994
1999 1998 1997 1996 1995 1994 Gross
margin 36.0 34.4 32.8 32.7 33.2 32.5 Product
ivity 37.4 38.7 41.0 41.9 42.5 41.7
84
Printemps, Actions in 2000

• On-going modernisation and renovation of stores
• On-going investment in IT systems
• Opening of a sports store in the Haussmann quarter

85
Conforama, Actions in 2000

• In France, opening of 5 stores and expansion of
  existing stores
• Ongoing policy of purchasing affiliated stores
• Opening of a 2nd store in Taiwan and a
  purchasing office in Asia
• Opening of first store in Poland
• New stores in Spain, Portugal and Switzerland
• Adding of 5/6 stores to the Nuitéa network
• New e-commerce site with 2000 references
• Establish European referencing and launch
  eurolines

86
Redcats, Actions in 2000

• New concept for the Redoute stores network
• Enhance Internet sites
• Mutualize logistics for specialized catalogues
• New Redoute and Movitex advertising campaign
• New visual identity for the Cyrillus stores
• Issue new catalogues
• Strengthen customer databases
• Creation of Redcats Asia (import purchasing
  office)by merging Ellos and Redoute Asia

87
Fnac, Actions in 2000

• Opening of 4 stores in France
• Expansion of fnac.com by adding technical
  productsand new services
• Opening of a 3nd store in Brazil
• Opening of a first store in Italy (9 planned by
  2003) and Switzerland
• Opening of new stores in Belgium (6th), Spain
  (6th) and Portugal (4th and 5th)
• Expansion of the Fnac Junior network
• Optimization of the Ariane logistics project
• Establishment of purchasing office in Miami (USA)

88
Credit and Financial services division, Actions
in 2000

• Develop presence in Great Britain, Scandinavia,
  Spain and Portugal
• Expand the savings products range,
  strengthenedby the new-distribution capacity of
  the BGC
• Open a Finaref site
• Increase the penetration of store cards
• Develop inter-operability of cards
• Continue to invest in customer knowledge

89
Rexel, Actions in 2000

• Ongoing acquisitions program - Branch
• First steps in China
• Chile a new opportunity in South America
• Ongoing policy of opening sales offices around
  the world
• Deployment of the logistics plan in France and
  around the world

90
Pinault Bois Matériaux, Actions in 2000

• Distribution
• Continue to reposition the agencies
• Initiate marketing improvements
• Deploy the operational projects information
  systems, warehousing and logistics
• Continue expansion by acquisition
• Import processing
• optimise sourcing
• develop new value-added products
• strengthen the sales teams

91
Guilbert, Actions in 2000

• Maintain the acquisitions programme in Europe
• Integrate Hutter in Germany and expand Kantic in
  the Netherlands and Seta in Portugal
• Enhance the new single organization in Great
  Britain
• Maintain the policy of European catalogue,
  European purchasing, and expansion of the product
  range
• Closer collaboration with Bernard and Sundex
• Expand on-line business
• Launch a new site (France/UK) with Bigtree.com

92
CFAO, Actions in 2000

• Maintain the acquisitions programme in order to
  expand geographical coverage of the strong
  businesses (cars and health) and strengthen
  market share in existing countries
• First steps in North Africa and East Africa

93
Gucci, Actions in 2000

• Ongoing expansion of the Gucci brand stores,
  product ranges ...
• Focus on newly acquired companies
• Capitalize on synergies between brands cost and
  know-how
• Continue the search for acquisition opportunities