Damartex : half year financial meeting

Half-year financial information for fiscal year 2023-2024

March 6, 2024

Executive summary

• Semester dedicated to the implementation of the Dare.Act.Impact plan

1. Piloting focused on FCF optimization with daily discipline on cash management

1. Implementation of the fixed cost restructuring plan presented in September
   Savings of €6 million already recorded on an annual basis

• 1. Continued investment in customer experience modernization efforts
• Sale of Afibel completed

The reasons for our trust:

• Improvement of NWC with significant progress in inventory management
• Improved NPS
• Positive momentum confirmed on PSAD, Xandres and new distribution channels (Market places, click & collect, social networks)

2

Environment

• Stable household confidence Concerns about the German market
• Inflation stabilised but perception still high (end effect of price freezes, e.g. electricity)
• Changing Consumption Priorities
  Tensions on products and positive momentum on services
• Volatility on ocean freight in terms of costs, deadlines and quality
• Market still growing structurally on the PSAD for the period 2017 to 2022:
  Infusion: CAGR +9.2%, PPC: CAGR 6.1%

14,0

12,0

10,0

8,0

6,0

4,0

2,0

0,0

120

110

100

90

80

70

60

50

Inflation Rate - %

FR BE UK GER

Consumer Confidence Index

since 2019

			France (Insee)		Belgium (Banque National Belgique)		UK (GfK)		Germany (Trading Economics)

Strategic Plan 2026

DELIVERING	INNOVATIVE	CHANGE	SHARED
FINANCIAL	BRAND	OUR	LEADERSHIP
PERFORMANCE	EXPERIENCE	WORLD

4

Delivering Financial performance

• Reduction in fixed costs: restructuring plan implemented with an impact of €6 million on an annual basis
  E.g. Decrease in the number of employees in Fashion & HLS
• Improvement of NWC: progress on the phasing of supplies and the running down inventories
• Improved Marketing Efficiency with a Drop €12.4 million in CI and improved ROI
  E.g. AI in content creation and investment targeting based on LTV per customer, gift reuse, etc.
• Voluntarism on variable costs:
  Outsourcing in Turkey implemented on UK & DE call centers Logistics Optimization
  Reduction in headcount by 98 FTEs
• Closure of the two unprofitable stores: Rosny and Sète

Innovative brand experience

• Efforts on customer communication/speech, delivery times (despite strong cost pressure)
• Highest level of NPS ever achieved in AW
• Market places channel growth of 14.4% Presence at Zalando, La Redoute, Amazon, Veepee, Showroom, Decathlon, Ebay, Manor, Bol.com, Breuniger
• Almadia repositioning more difficult than expected

Change Our World & Shared Leadership

Change our world

• Progress on the share of eco-responsible products in the Fashion division:
  SS23: 21.5% AH23: 37.5%
  Example of the Damart Sport range: made from 100% recycled polyester

Shared Leadership

• Launch of "Leadership Development" with 30% of our top team
• Concrete support for the transformation towards a more agile and entrepreneurial culture

7

1 Financial Results

Afibel

Operation :

• Sale of all the shares making up Afibel's share capital to the CTFI Group on February 27, 2024

Specific context:

• Social climate: Unanimous favourable opinion of Afibel's CSE
• Approval by the Commercial Court of Lille Métropole on 14 February - sale carried out under a conciliation mandate

Key Elements:

• Job Retention
• Real estate complex taken over by Damartex
• In line with the Refinancing Business Plan

Impact on the presentation of the financial statements as at 31 December 2023:

▪ IFRS 5: Classification as Discontinued Operations / Assets Held for Disposal

9

Half-year revenue as of December 31, 2023

M€

Damart

Xandres

Fashion

Coopers of Stortford

3 Pagen

Vitrine Magique

Home & Lifestyle

Santeol

Almadia

MSanté

Healthcare

DAMARTEX Group

AW23	% Groupe	vs AW22
210,3	72%	-11%
16,4	6%	13%
226,7	77%	-10%
20,7	7%	-21%
23,3	8%	-8%
5,4	2%	-15%
49,4	17%	-15%
8,1	3%	7%
7,3	2%	-43%
1,4	0%	3%
16,8	6%	-22%
292,9	100%	-12%

All data are reported excluding Afibel (classified as discontinued operations under IFRS 5 as of December 31, 2023). As a result, flows for December 31, 2022 have been restated.