3i Capital Markets Seminar - 18 March 2021
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3i Capital Markets Seminar 18 March 2021
Action story enhanced by 2020 performance
Action – 3i carrying value, £m1
✓ Discount retail sector has proven resilient during the
pandemic Carrying valuation 4,426
• Increasing customer acceptance of discount retailing
• Evergreen attraction of low price focused SKU model
3,536
✓ Customer value proposition has strengthened
• Core essentials range underpins Action's importance in customers’ day to day lives 2,731
• Maintenance of high sales volumes and superior sales densities
• ASR and digital journey accretive to proposition 2,064
1,708
✓ Outstanding depth of performance across geographies
• Successful scaling of Germany and Poland complements continued strength in
Netherlands and France 902
592
• White space opportunity remains significant 501
280
143
✓ Conviction in enduring compounding benefit to 3i
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Q3
FY21
(1) 3i financial years
2
Submitting questions
Click here
3
Today’s presenters
Sander van der Laan Joost Sliepenbeek
Chief Executive Officer Chief Financial Officer
Joined in October 2015 Joined in November 2018
30 years of Consumer & Retail experience 20 years of Consumer & Retail experience
Various positions at Ahold (1998 – 2015) 33 years experience in finance, 21 years as CFO
‒ CEO Albert Heijn (2011 – 2015) ‒ CFO Vion (2015 – 2018)
‒ COO Ahold Europe ‒ CFO Van Gansewinkel (2013 – 2015)
‒ General Manager Albert Heijn ‒ CFO C1000 (2009 – 2012)
‒ CEO Giant Food Stores (Ahold USA) ‒ CFO HEMA (2007 – 2009)
‒ EVP Marketing & Merchandising Albert Heijn ‒ CFO Albert Heijn (1999 – 2003)
‒ General Manager Gall & Gall ‒ Various positions at Ahold (1994 – 2007)
4 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Agenda 1. Introduction Simon Borrows 2. Business performance 2020 Sander van der Laan 3. Strategy update Sander van der Laan 4. Financial performance 2020 Joost Sliepenbeek 5. Trading update Sander van der Laan 6. Wrap Up Simon Borrows 5 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Despite the pandemic, 2020 was another year of strong
performance and continued investment for the future
€5,569 (1.4)% €609 164 76%
Million Like-for-like Million New stores Cash
net sales sales Operating opened conversion1)
+8.9% EBITDA1)
+12.4%
+10.4%
normalised
Significant growth and investment in future achieved
despite disruption from the pandemic
6 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Note: all 2020 figures based on 52 weeks unless explicitly referenced to 53 weeks financials 1) Excluding CAPEX for new DCs
Our high growth track record continues
Net sales (€m) Operating EBITDA (€m)
5,569
+24% 5,114 609
+24%
4,216 541
3,418 450
2,675 387
1,995 310
1,506 226
166
2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020
Store expansion (numbers) & # countries LfL sales growth (%)
10.4%1)
+ on average 200 p/y 1,716
1,552 7.6%
1,325 7.2% 6.9%
1,095 5.3% 5.6%
852
655 3.2%
514
# of
#4 #6 #6 #7 #7 #7 #8 countries
2014 2015 2016 2017 2018 2019 2020
(1.4%)
2014 2015 2016 2017 2018 2019 2020 2020
normalised
7 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 1) Weeks 12 to 22 and weeks 44 to 52 normalised. Please see slide 51 and 52 for further details
LfL throughout 2020 – strong underlying performance
Period 1 and 2 Period 3 to 5 Period 6 to 10 Period 11 and 12 FY
Lockdown 1 Lockdown 2
Very strong start Store closures and/or All stores open selling full assortment. Supply chain Store closures and/or
assortment restrictions across disruption resulted in some availability issues and assortment
all markets except the NL impact on sales restrictions impacted
FR, BE, AT in P11 and
NL, DE, AT in P12
17.4%
11.0% 11.6% 13.3% 12.2%
8.6% 6.6%
1.3%
(1.4%)
(10.6%) (13.4%)
(19.8%)
(61.2%)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 Total
8 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Covid-19 dominated the year
First priority: safety of our customers and employees
Implemented door policy to control customer inflow
Additional store labour and cleaning costs
Strict protocols and measures in place (screens, face masks, safety
vests, sprays, hand gels etc.)
Working from home policy in place for all offices
Only essential travel allowed
9 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Covid-19 interrupted our operations,
however business plan not at risk
Scaling down supply chain temporarily interrupted service levels and
product availability
Store expansion and new countries slowed down in first half
Strong focus on cash management
Financial performance remained strong
2023 business plan not at risk
10 ACTION | 3I CAPITAL MARKETS SEMINAR 2021In 2020 we successfully opened 164 new stores, entered
the Czech Republic and added a new DC and a new hub
Opened 100th store in
Opened 9th DC in Poland
Verrières, France +44
+8
1,716 +164 395 101
+42
+7 389
189
+1 +5
9 5
+15
Started operations in
Entered the Czech 69 2nd hub in Wrocław
+42
Republic in Q3
559
11 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 xx # of stores 2020 xx New stores opened in 2020Strengthened our unique customer proposition
Extra large store pilot in Paris Genevieve des Bois Self check-outs well received in NL and BE
Same articles, same prices and same promotions ~50% of transactions shift to self check-out in first 4 weeks
Larger floor plan of 1,600m2 Further improvement in the store operating model
Top sales per week ~€400k
12 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Very strong performance in the Netherlands
Strong LfL P1-P11 of 8.4% (lockdown in second half P12)
Strong brand with 97% awareness and 64% penetration1)
DC Zwaagdijk Upgraded store network
+8 → 8 new stores added Really, Action is the store that the
Netherlands misses the most
→ 28 refurbishments Of all stores that are currently closed due to
395 the lockdown, consumers miss Action the
most. This is evident from a survey by
→ 5 enlargements research organisation Q&A of more than 4,500
Dutch people
Het Parool 12 February 2021, 20:35 (original in Dutch and translated in English)
→ 8 relocations
DC Echt
Total of 107 stores with self-check outs
xx # of stores 2020 xx New stores opened in 2020
13 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 1) Source: GfK dashboard results 2020 and penetration is % clients that purchased one or more products at Action in the previous six monthsFrance is our biggest market with ample
remaining growth potential
DC Moissy Strong LfL of 8.1% in P1-P2 and of 13.1% in P6-P10
DC Verrières
#1 market in sales, store numbers and sales growth
~16,500 employees and ~2.7m customers per week
+42
Total sales driven by expansion and LfL ticket size growth of 12.4%
559 DC Belleville
DC Labastide
DC Ensuès (2022) Hub Martin-de-Crau
xx # of stores 2020 xx New stores opened in 2020
14 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Germany has made great progress in growth
and profit
DC Peine Strong P6-P10 LfL of 19.9%
DC Echt, NL #3 market in sales and store numbers today
83 million inhabitants provide huge potential for continued expansion
+42 Strengthened management team
389 Higher quality of new locations, more focus on urban centres and large cities
3.3
2.8 2.9 3.0 2.9
2.0 1.9
DC Biblis Average sales per store1)
Average sales per new store2)
2017 2018 2019 20203)
xx # of stores 2020 xx New stores opened in 2020
1) 136 stores openedPromising start of click & collect
Successfully piloted in multiple markets Sales development in 2021, NL (€m)
Customer selects store and products on our website
~28% ~31% ~33% ~40% ~46% ~99%
Chooses a pick up time-slot 32.7
11%
Order picked instore by Action employee
Pick up from service counter or outside 15.5
13.9 89%
9.7 10.5 45%
8.8 59%
55%
41%
week 6 week 7 week 8 week 9 week 10 week 111)2)
Sales C&C per week (incl. VAT)
Sales shopping on appointment per week (incl. VAT)
xx Index vs 2020
1) Expected sales week 11 in line with budget 2021 and sales split based on performance 16 March 2021
16 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
2) From 16 March: max 50 customers per 20 minute timeslot. Initially, only maximum of 8 customers per hour allowedOther notable successes in 2020
Further strengthened our Symphony - expanded KRONOS - 100 % roll out of
digital customer interface functionality of planning our workforce management
software to improve system
availability
Further development of Developed a new opening ESG strengthened including
private label portfolio marketing campaign supporting local healthcare
providers
17 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Agenda 1. Introduction Simon Borrows 2. Business performance 2020 Sander van der Laan 3. Strategy update Sander van der Laan 4. Financial performance 2020 Joost Sliepenbeek 5. Trading update Sander van der Laan 6. Wrap Up Simon Borrows 18 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Sustainability is an integral part of Action’s strategy
Strengthen our
International
I unique customer value II
geographic expansion
proposition
Build a simple, efficient and
III
scalable operating model
IV Make sustainability accessible
V Organisation, people and values
19 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Action’s winning customer proposition and brand appeals
to everyone and is supported by a strong business model…
Brand promise – More than you expect for less than you imagine
150-200 new articles
per week
Quality and Action
6,000 SKUs in Surprising Every day the Weekly Easy
Social Responsibility
14 categories assortment lowest price promotions shopping
(‘ASR’)
Non food discounter
Simple – Efficient – Cost conscious
20 ACTION | 3I CAPITAL MARKETS SEMINAR 2021…with a sustainable advantage and best-in-class unit
economics
Action continues to reinvest in the
customer value proposition
through even lower prices, quality
and continuous surprise
Customer value proposition Competitive advantage
Action’s increasing scale Action’s attractive customer value
enhances profitability and builds a proposition led by low prices,
competitive advantage through quality and surprise drives top line
sheer size, purchasing power and growth
scale efficiencies
Store roll-out & growth Unbeatable financial model
Action’s operating model delivers
exceptionally compelling economics and
cash generation to support store expansion
21 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Strengthen our unique customer value proposition
Strengthen our unique customer value proposition
22 ACTION | 3I CAPITAL MARKETS SEMINAR 2021As a non-food discounter Action offers a surprising
range of c. 6,000 SKUs across 14 categories
Product innovation and quality demonstrated by
Number of SKUs per category ranges between ~100 and ~900
numerous awards
Garden &
Sport Personal care
outdoor
Decoration DIY Pets
Laundry & Toys &
Multimedia
cleaning entertainment
Stationery & Linen Clothing
hobby
Household Food & drink
23 ACTION | 3I CAPITAL MARKETS SEMINAR 2021With a surprising assortment we are able to quickly
meet changing customer demand
Action offers 150-200 new articles per week Does Action have a surprising assortment?
62%
Closest
Coca Cola (375ml) 34%
competitor
€0.73 54%
~1/3 fixed
Closest
35%
competitor
54%
Chocolate Easter eggs
Closest
37%
€1.45 competitor
45%
Closest
~2/3 non-fixed 41%
competitor
Garden hand trowel
52%
€0.89 Closest
38%
competitor
47%
Assortment Closest
Examples 52%
competitor
24 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: GfK report June 2020 and company informationUnbeatable prices are the core element of our customer
proposition
Product types 60% of SKUs below €2 Known for low prices1)
A-brands
92%
~30% ~ 30% ~ 30%
Top scoring competitor 58%
83%
€1.75 €1.49 €1.79 Top scoring competitor 51%
Supplier brands 76%
Top scoring competitor 73%
~ 7%
79%
€2.59 €4.99 €3.99 ~ 3% Top scoring competitor 51%
Private labels 66%
€0-1 €1-2 €2-5 €5-10 >€10 Top scoring competitor 67%
Primary offering 65%
€10.99 €14.79 €1.89 Top scoring competitor 74%
25 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: GfK report June 2020; answers received on the question to participants: to which brand(s) does the statement ‘low prices’ apply?Action brand and format appeals to everyone
Gender Age Brand awareness1)
Female Male 50+ 35-49 18-34
97%
89%
26% 76%
47% 44% 42% 47% 42%
57% 57% 58% 58% 57% 65%
54% 49%
33% 48%
30% 24% 30%
27% 31%
43% 43% 42% 42% 43% 35% 34% 40%
26% 26% 21% 28%
Income Education Penetration1)2)
High Middle Low High Middle Low 64%
22% 22% 24% 13% 19% 26%
36% 36% 34% 31% 47%
45% 44%
36% 33% 35%
31% 32% 30% 30%
28% 41% 18% 23% 25%
42% 51% 18%
43%
47% 45% 46% 52% 48% 44%
36% 38%
23% 26% 18%
12%
1) For DE, AT, PL the % only applies within catchment area and not national
26 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: GfK report June 2020 2) % clients that purchased one or more products at Action in the previous six months…which generates high sales volumes and density
Examples of high volume items Average sales density (sales / m2) vs. competitors1)2)
Variety of face masks Aluminium foil
(1 – 50 pieces) 2.8x
Price (NL) €1.29 – €4.95 €0.99 Avg. competitors
2.7x
Volume ~76.3m >6.3m Avg. competitors
2020
Kitchen paper Disposable gloves
Price (NL) €1.68 €0.99 2.6x
Avg. competitors
Volume 3.7x
2020 >7.9m >1.5m
Avg. competitors
1) Action floor productivity based on a ‘mature’ set of stores opened before 2017
2) Competitors’ floor productivity based on 2018 public figures combined with total sales surface area figures from Locatus (NL, BE) and
27 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Euromonitor/IGD (FR, DE). Competitor floor productivity on ‘mature’ store set was not possibleFurther strengthening of multiple digital customer
touchpoints
Social media followers
Launch App first in NL… …and launch loyalty
+21%1) +50%1) programme later
2.3m 1.8m
Facebook Instagram
fans followers
Digital Early
Receipts updates
Emails and website
+19%1) +38%1) Seasonal Other
stamp card features
5m 272m
email web Supports in-store experience Drive customers to store with
sessions (e.g. product catalogue & loyalty-based engagement (e.g.
subscrib.
shopping list) stamp card, digital receipts)
28 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 1) Year-on-year growthStrengthen our unique customer value proposition
Make sustainability accessible
29 ACTION | 3I CAPITAL MARKETS SEMINAR 2021During the pandemic
we have been able to
support our customers
with much needed
essentials
Example of an Action ad
in national newspapers in
NL, BE and DE in 2020
30 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Action is already delivering on its ASR strategy
Progress made in plastics Sustainable cotton Sustainable timber
Outdoor planting
plastic accessories
with recycled plastic Action’s sustainable cotton confirmed Action’s sustainable timber confirmed
saving 1,900 tonnes of
virgin plastic at 76% for 2020 at 60% for 2020
OFFICE
HOTEL ROYAL ZIKI MINI MATTERS
Replaced single use plastics ESSENTIALS
Private Label Private Label Private Label
Private Label
31 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Our sustainability strategy focuses on four UN sustainable development goals 32 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Product – achieve 100% supply chain transparency
Safety Social compliance
We ensure all our products are safe and responsibly sourced We strive for 100% supply chain transparency
Technical file transparency/compliance for 100% transparency of entire
full assortment by end 2025 (Product IP) assortment by end 20251)
Full visibility already in place for
direct import
Product & manufacturing
Packaging
We strive to minimise our impact through manufacturing and raw
We aim to optimise our approach to packaging waste reduction
material use
Commit to 100% sustainable Publish Packaging policy and
timber & cotton by 2025 best practice guidelines to total
supply base
Deliver category specific
Circularity plans for entire Deliver 100% recyclable
business by the end of 2022 packaging for entire assortment
by end 20251)
33 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 1) except A-brandsEnvironment - minimise our environmental impact
across the supply chain
Waste management Energy & emissions
We commit to mitigating our waste to minimise our footprint We commit to reducing our energy usage and emissions
Plastic stretch wrap usage on Reduce energy usage per m2 within our
containers reduced by 30% buildings by 15% by end of 2024
Ban on use and sale of single use Ensure 50% of our total energy used is
plastics and disposables replaced renewable by 2025
by bamboo, cardboard,
paper/wooden alternatives Achieve zero gas stores
Environmental footprint Actively contribute to reduction of carbon
We commit to reducing our environmental footprint throughout our emissions of third-party operated transport
operations
Reduce carbon emissions of vehicles (e.g.
All new DCs rated in the top
with alternative fuels for Action fleet)
category by BREEAM or
equivalent standards
34 ACTION | 3I CAPITAL MARKETS SEMINAR 2021International expansion
International geographic expansion
35 ACTION | 3I CAPITAL MARKETS SEMINAR 2021New store roll-out is the engine behind Action’s growth
story
The reason is simple… … and the economics are extremely attractive
1
One single and successful format 1 year average historical payback on
new store CAPEX
2
Proven to travel across borders All stores opened before 2020 are
profitable1)
3
First class store opening teams & Store expansion self-funding
processes
4
Increasing operating leverage
Massive white space opportunity through size and scale
36 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 (1) Based on store contribution (incl. supply chain costs) FY2020 (including lockdowns)Principle of one format across all countries remains
unchanged
1 1 1
brand store format store operating model
Action name resonates in all languages All stores look the same Same policies
Marketing and packaging is consistent Stores between 700 to 1,100m2 Same ordering systems
and standardised across all countries Over 90% of assortment is the same Same processes
across all stores and countries Same employee training
Same management structure
International expansion of the Focus on simplicity enables Same proven formula applied
brand is seamless rapid new store roll-out to every new store
A simple, repeatable and scalable business model
37 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Continued rapid store roll-out in current markets and
entry in new markets
Population in millions
2020 237 61 47 163
% of store potential
2021
2022
1,716 stores open
FY2020
Existing markets IT ES Rest of Europe
Conservative estimate of white
Rapid expansion in
space potential in new and existing
FR, DE, PL, AT and CZ
markets (in scope) is ~4,800 stores
38 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Czech Republic – roll-out after successful pilot
DC Osla Strong start of our 5 pilots stores
Poland DC Bierun
Poland (2021) Sales growth Czech Republic on average ~30% better than in
Poland1)
Population of 11 million allows for at least 150 stores
Expect to open at least 12 new stores in 2021
No additional supply chain CAPEX
DC Bratislava,
Slovakia (2021)
39 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 1) Based on performance 2020 in weeks since start of pilot in Q3 2020 without restrictionsOpening 5-7 pilot stores in North of Italy in 2021
DC Belleville, France
Lombardy First store planned in Vanzaghello in Q2
(3 stores)
Population of 60 million, initial focus on North of Italy with 28 million
people
Piedmont
(4 stores) Start up delivered from France, first DC location identified
Local management team in place, GM hired
First store Vanzaghello
under construction Store teams recruited and currently in training
40 ACTION | 3I CAPITAL MARKETS SEMINAR 2021A simple, efficient, responsible and scalable operating model 41 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Action continues to grow its DC network to enable its
store expansion
DC Bierun, PL (2021)
DC Ensuès, FR (2022)
DC Bratislava, SL (2021)
42 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 DCs to open >2020 DCs/Hubs opened in 2020 DCs/Hubs openedDevelopment of Hubs to improve availability and reduce
inventory levels across the chain
A hub enables direct sourcing of containers from Far East
Hubs receive and palletise inventory and supply DCs
Benefits: improve availability and lower inventory levels
Hub I is a multi-site location and Hub II is a stand-alone location
both operated by our logistical service provider Katoen Natie
Direct sourcing expected to increase from ~13% of sales in 2020
to at least 20% in 3-4 years
43 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Organisation, people & values 44 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Further strengthened our management team to support
our ambitions
CEO CFO
Sander Joost
van der Laan Sliepenbeek
Commercial Director Store Director Director
Director HR
Director Operations Supply Chain Technology
Luc De Baets
Hajir Hajji Florian Knauer Joost Bous Jens Burgers
GM start-Up
GM NL GM BeLux GM France GM DE
countries
Pieter Rozendaal Judia Elkadi Wouter De Backer Bart Raeymaekers
Monique Groeneveld
GM Czech
GM Austria GM Poland GM Italy
Republic
Boyko Tchakarov Slawomir Nitek Philippe Levisse
Petr Julis
45 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Executive committee Country General ManagersRoll-out of values across the organisation ensures we preserve our Action DNA 46 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Agenda 1. Introduction Simon Borrows 2. Business performance 2020 Sander van der Laan 3. Strategy update Sander van der Laan 4. Financial performance 2020 Joost Sliepenbeek 5. Trading update Sander van der Laan 6. Wrap Up Simon Borrows 47 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Our repeatable financial model remains unchanged
1 2
• Low SKU count
• New store roll-out and country
expansion • Consistent gross margin across
Clear value Superior store categories
drivers • LfL sales growth economics • All LfL stores profitable
• EBITDA margin
• High sales density
3 4
• Proven
• Low capital intensity Strong
Excellent cash • Consistent
• Negative working capital economic
generation • Predictable
• Fast payback model
• Robust
Delivered with discipline and tight control
48 ACTION | 3I CAPITAL MARKETS SEMINAR 20212020 performance explained
• LfL growth
• Store expansion
Action’s
• Operating leverage
repeatable • EBITDA margin
financial model • CAPEX
• Cash conversion
+
• Impact of 53rd week
• LfL normalisation
2020 additional • Covid-19/social distancing restrictions impact on OPEX
drivers • Germany, Austria and Poland coming of age
• Cash management
• IFRS 16
49 ACTION | 3I CAPITAL MARKETS SEMINAR 2021Continued strong sales and EBITDA growth in 2020 in
spite of the Covid pandemic
Net sales (€m) Operating EBITDA (€m)
8.9% 10.2% 13.8%
5,637 12.4%
5,569
5,114
609 616
4,216 541
3,418 450
2,675 387
1,995 310
1,506
226
166
2014 2015 2016 2017 2018 2019 2020 2020 (53 2014 2015 2016 2017 2018 2019 2020 2020 (53
weeks) weeks)
Operating EBITDA (%) 11.0 11.3 11.6 11.3 10.7 10.6 10.9 10.9
Run-rate EBITDA (€m) 190 265 361 456 509 601 651
50 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company information Note: all 2020 figures based on 52 weeks unless explicitly referenced to 53 weeks financialsFull year reported LfL impacted by lockdowns
Normalisation for weeks 12 – 22
+480bps
→ Only applied for countries which were
10.4 forced to close stores and/or remained
open with limited assortment
→ Includes normalisation for reopening
7.6
7.2 6.9 effect
→ Normalisation based on performance
►6.0% 5.3 5.6
YTD week 11 2020
3.2 Normalisation for weeks 44 - 52
→ Only applied for countries which were
forced to close stores and/or remained
open with limited assortment
→ Includes normalisation for reopening
effect
(1.4)
→ Normalisation based on performance
2014 2015 2016 2017 2018 2019 2020 2020 YTD Q3 2020
normalised
Annual LfL % growth
Average LfL 2014-2019
51 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationNormalised 2020 LfL growth +10.4% versus (1.4%) reported
1 2 3 4
Week 1 – 11 Week 12 – 22 Week 23 – 43 Week 44 – 52
40%
+7.3% (34.9)% +7.4% +12.7% (4.8)% +11.3%
20%
0%
(20)%
(40)%
x.x% Reported LfL
(60)%
x.x% Normalised LfL
(80)%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
week
52 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationStrong LfL growth in all countries between lockdowns
LfL sales growth by geography, week 23 – 43
20.7%
19.4%
14.5%
13.2% 12.7%
11.8%
8.4%
Netherlands Belgium Germany France Austria Poland Total
53 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationStore closures and assortment restrictions in quarters
1,2 and 4
Net sales per quarter (€m)
15.3%
23.3% 1,804
1,541 1,564
9.1% (8.8)%
1,216 1,250
1,184
1,085 1,109
Q1 Q2 Q3 Q4
2019 2020
54 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationStore openings: programme delayed by pandemic,
catch-up in 2021
(1)
244 (2) (3)
6 232 230
11
19
197 32
20
6 16
164
115
141 5
89
1 100 93 44
108
68 15
39
42
80 72
23 31 60 59
25 42
24 18 19
18 18
21 17 13 14 13 12 8
8
2014 2015 2016 2017 2018 2019 2020
Czech Poland Austria France Germany BELUX Netherlands
(1) Net stores added was 243 as a result of one store closing in the Netherlands
(2) Net stores added was 230 as a result of two store closings in the Netherlands
55 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 (3) Net stores added was 227 as a result of three store closings in the Netherlands Source: company informationConsistent margins across all categories
60 %
50 %
40 %
30 %
20 %
10 %
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Categories
56 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationOperating leverage shows in all countries with Germany,
Austria and Poland coming of age
Average store contribution margin by country P6 to P10 - stores opened before 2019
+100bps +100bps
+60bps +285bps +120bps
+385bps +215bps
# of stores
375 167 288 424 38 25 1,3221)
openedTotal CAPEX development
(In €m)
5.4% (17.5)%
11.3% 210 Lower CAPEX (€37m) versus last year as projects were
199
paused and new store expansion temporarily halted during
179
173 the first lockdown
Lower CAPEX spend per new stores reflects continuous
efforts to reduce €/m2
Continued investment in IT
123
105 Other
98
DC maintenance
71
Store maintenance / RERs
IT
New DC (incl. IT)
2017 2018 2019 2020 Store expansion
58 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationStrong cash flow: 2020 cash conversion of 76%
100% Low capital intensity, negative
700 100
92% working capital and fast payback
86%
600 for new stores lead to strong
77% 76%
73% 75 cashflow, notwithstanding Covid-
500
70%
462 451 19 impact on timing of sales and
58% 419
400 working capital and required cash
50
314 management
300 268
225 223 Cash and cash equivalents end of
200
153 25 week 53 was €590m (excludes
100 €100m unused revolving facility)
0 0
2014 2015 2016 2017 2018 2019 2020 2020 (53
weeks)
Operating cashflow (excl. CAPEX for new DCs)
Cash conversion = Operational cashflow / Operating EBITDA
59 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationOverview of high-level financials
Change 2020 (53 Change
2019 2020
(vs 2019) weeks) (vs 2019)
Net sales (€m) 5,114 5,569 +8.9% 5,637 +10.2%
LfL sales growth 5.6% (1.4%)
Operating EBITDA (€m) 541 609 +12.4% 616 +13.8%
EBITDA margin 10.6% 10.9% 10.9%
Cash conversion 77% 76% 73%
Number of stores (end of
1,552 1,716 +164 1,716 +164
year)
60 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationImpact of IFRS16 on Action 2020 financials
The average lease period of Action’s store portfolio is
RIGHT-OF-USE ASSET AND
EBITDA (€m)1)
LEASE LIABILITIES (€m) 3.4 years but differs per country
→ Action is desired as a tenant by landlords as it
758 784 drives traffic to the destination
36 782
202 → At the end of a lease Action receives competitive
616 pricing for renewals
IFRS16 impact on other financials 2020:
→ Lease adjustment: €202m (2019: €179m)
→ Depreciation right-of-use asset: €190m (2019:
€170m)
Adjusting items mostly non-recurring cost for long-
Operating Lease Adjusting IFRS16 Right-of-use asset Lease liabilities term incentive plans
EBITDA adjustment items
1) 2020 based on a 53 week financial year
61 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationSummary 2020 financial performance
• Strong normalised LfL growth in all countries between lockdowns
Strong LfL performance
• Product offering tailored to meet changing customer demand
5,569
5,114
• Strong LfL shows operating leverage in all countries
Country EBITDA
• Additional Covid-19 related opex
• Mitigated availability issues over the summer
Supply Chain
• Covid-19 related complexity
2019 2020
+
• Store expansion and projects halted during the first lockdown
541
609 Very strong performance • Strong focus on cash management and stock levels
between lockdowns and • Start-up costs of new DCs and investments in IT
continued investments to • Incremental investments to strengthen capabilities in commercial,
support growth planning, digital, supply chain and support
• Expansion of Czech and Italian team
2019 2020
62 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationAgenda 1. Introduction Simon Borrows 2. Business performance 2020 Sander van der Laan 3. Strategy update Sander van der Laan 4. Financial performance 2020 Joost Sliepenbeek 5. Trading update Sander van der Laan 6. Wrap Up Simon Borrows 63 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Current trading 2021 – situation by country at 17/3/2021
m2 per Shopping by
Country Stores open Click & Collect Assortment
customer appointment
NL 25* n/a* Y All* Full
BE 10 All Y N Full
LU 10 All N N Full
DE 10/20/40** 157 out of 391 N 214 stores Full, 18 stores essentials only***
FR 10 554 out of 572 N N Full
AT 20 All Y N Full
PL 15 All N N Full
CZ 15 All N N Essentials only (~53%)
* As of 16 March: max. 50 customers per 20 minute timeslot
** For fully open stores: first 800m2; 1 customer per 10m2 and above 800m2, 1 customer per
20m2. For Click & Meet stores: 1 customer per 40 m2
64 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company information *** 2 stores closedCurrent trading 2021
Negative LfL sales P1 and P2, turned positive in P3
→ Netherlands, Germany and Czech Republic heavily impacted by store closures
→ YTD LfL week 10 of >25% in Belgium, France, Luxembourg and Poland
Supply chain and DCs are operating well with good product availability
2021 store expansion plan on target with store openings above last year in Q1 so far
Cash and liquidity currently €525m
65 ACTION | 3I CAPITAL MARKETS SEMINAR 2021 Source: company informationAgenda 1. Introduction Simon Borrows 2. Business performance 2020 Sander van der Laan 3. Strategy update Sander van der Laan 4. Financial performance 2020 Joost Sliepenbeek 5. Trading update Sander van der Laan 6. Wrap Up Simon Borrows 66 ACTION | 3I CAPITAL MARKETS SEMINAR 2021
Action is one of Europe’s best retail growth stories…
2020 2023
✓ Action is one of the most successful retail
growth stories in Europe
Sales €5.6bn c.€9.0bn
✓ Action story is stronger from the pandemic
✓ 2023 business plan targets are unchanged
EBITDA €609m >€1bn
# Stores 1,716 c.2,750
# Countries 8 >12
# DCs 9 c.15
673i provides long-term capital backing and strong governance
Governance Long-term vision
3i provides active and responsible governance with a 3i brings an ambitious, growth-orientated long term
focus on the ASR agenda mindset to Action
Investment Values
Prioritisation of investment in Action’s infrastructure 3i leadership protects and supports Action’s customer
continues to drive value creation for all stakeholders values and culture
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