2022/2023 REVENUES: €567.4M

• SLOWER DECLINE IN Q4 CONSOLIDATED REVENUES AT €142.7M
• GROWTH IN STORE BUSINESS FOR 2^ND CONSECUTIVE QUARTER
• ONGOING INVESTMENTS FOR THE GROUP'S DEVELOPMENT: BRAND AWARENESS, STORE CHAIN, LOGISTICS CAPACITIES, BTOB OFFERING
• SOLID FUNDAMENTALS AND BUSINESS MODEL DRIVING MEDIUM-TERM GROWTH

Olivier de la Clergerie, LDLC Group CEO, said: “The LDLC Group posted full-year 2022/2023 revenues of €567.4m, down 17.2% from the previous year. As previously announced, the year was impacted by a challenging comparison base in the first half, with a high level of high-tech equipment ownership among households and external factors (inflation, rising energy prices, etc.) which led to postponements in purchases by retail and business customers.

Although we have not yet seen a significant recovery in the market, the outlook brightened for LDLC in Q4 2022/2023 nonetheless. As a result, store revenues were up for the second consecutive quarter following the expansion of the store chain during the year. Although it's too early to speak about growth, business picked up in March. Furthermore, in April, daily invoicing was no longer down versus the previous year.

Despite an unfavourable short-term environment, we used this year to consolidate our fundamentals by strengthening our brand awareness, regional network and logistics capacities through the new centre in St-Quentin-Fallavier. We also announced the acquisition of the A.C.T.I MAC Group to consolidate our positioning in BtoB, which is a major growth driver.

Backed by our solid fundamentals, sound financial position and proven ability to safeguard our gross margin, we have kicked off the 2023/2024 financial year with confidence and determination. We are convinced of our ability to take advantage of market recovery as soon as the trend is confirmed.”

12-MONTH CONSOLIDATED REVENUES (1 APRIL TO 31 MARCH)

Corporate data: Q4 2022/2023 revenues €131.0m, 12-month revenues €519.1m

Q4 2022/2023 revenues: €142.7m

Q4 2022/2023 revenues totalled €142.7m, down 10.9% from the previous year. In line with the previous quarter, business was stronger than in the first half due to a less demanding comparison base and more buoyant upgrading programme, particularly among retail customers (launch of new processors and graphics cards).

The BtoC business posted Q4 revenues of €98.0m, down 10.3% from the previous year. Store revenues were up 13.1% to €31.7m, confirming their positive trend after returning to growth in the previous quarter (up 5.5% in Q3 2022/2023).

The BtoB business posted Q4 revenues of €41.4m, down 13.2% from €47.7m the previous year.

Revenues from other businesses were up 3.1% at €3.3m, driven by the success of childcare brand L'Armoire de Bébé, which posted revenues up 3.6% versus Q4 2021/2022.

FY 2022/2023 revenues: €567.4m

Full-year 2022/2023 consolidated revenues amounted to €567.4m, down 17.2% Business was impacted by a challenging comparison base in the first half and a persistently high level of new equipment ownership among households and businesses, following the significant high-tech purchases made during the COVID period. The economic backdrop also weighed heavily on sales, with households and professionals preferring to postpone discretionary spending in the face of price hikes, particularly energy costs.

The BtoC business posted full-year revenues of €381.4m, down from €477.6m the previous year. While the online business was particularly hard hit, down 27.1%, due to pressure on purchasing power, stores edged up 0.5%, posting full-year revenues of €121.2m. This positive trend confirms the merits of the Group's investments aimed at getting closer to its customers by expanding the regional network. The LDLC Group opened 20 new high-tech stores during the 2022/2023 financial year.

BtoB revenues fell 11.4% to €172.5m. Albeit less impacted than BtoC, the BtoB segment was hit by the postponement of high-tech spending by companies, a temporary measure to cope with rising costs mainly prompted by the surge in energy prices and high dollar volatility. In the medium to long term, this segment will be a major growth driver for the LDLC Group. Indeed, companies will have to continue to invest heavily in order to adapt to the boom in digital technology and the new uses and needs it brings. Having already consolidated its BtoB presence and offering in the last few years, the LDLC Group completed the planned acquisition of the A.C.T.I. MAC Group in April 2023, thereby considerably strengthening the BtoB offering. The Group is ideally positioned to take advantage of the recovery in this segment.

Other businesses posted total full-year revenues of €13.4m, up 6.5%. L'Armoire de Bébé pursued its growth path with revenues up 5.5% at €8.9m. The success of this business is mainly driven by the development of its online reputation and the expansion of the store chain (9 stores at 31 March 2023 versus 7 at 31 March 2022).

RECENT NEWS AND OUTLOOK

Completion of the A.C.T.I. MAC Group acquisition

On 1 April 2023, the LDLC Group finalised the acquisition of 100% of the share capital of A.C.T.I. MAC and its subsidiary O.S.I. Nx (the “A.C.T.I. MAC Group”). The acquisition was financed entirely by bank loans.

The deal notably enables the LDLC Group to strengthen its BtoB division. The A.C.T.I. MAC Group has five branches including three Apple Premium Reseller stores in France. It also offers a comprehensive range of services for businesses.

With around 60 employees, the A.C.T.I. MAC Group posted revenues of around €42m in its last financial year.

LDLC once again receives Qualiweb awards for customer service

With a score of 92.9, LDLC came out on top of the 230 brands tested for the competition this year and won the Qualiweb Award for Best Online Customer Service across all sectors.

The survey highlighted LDLC's strengths, including the responsiveness, quality and accuracy of its teams' handling of customer requests, in particular their ability to genuinely listen to the customer. Having already won in 2018, this is the second time LDLC has reached the top of the Qualiweb ranking based on mystery shopper surveys. LDLC has received a total of 22 awards for its customer service across all competitions.

Outlook

2023/2024 business is expected to progress steadily and see a slight return to growth (at constant consolidation scope), with retail and business customers still cautious about committing to purchases at present. Moreover, the BtoB business was strengthened by the acquisition of the A.C.T.I. MAC Group.

Over the medium term, the Group will be operating in fast-growing markets. To capture growth in these markets as soon as they recover, the LDLC Group will be relying on its persistently sound financial position and the fundamentals consolidated in 2022/2023. The Group will also leverage the measures taken to strengthen its brand awareness, ramp up the development of its store chain and expand its BtoB offering. Future growth will also be driven by new logistics solutions and facilities, including the ramp-up of operations at the new warehouse in St-Quentin-Fallavier.

Drawing on these strengths, and even though present factors could still impact its economic performance in the short term, the LDLC Group confirms its ability to return to normalised gross margin and profit levels in the medium term.

PROVISIONAL CALENDAR OF UPCOMING PUBLICATIONS AND EVENTS

*Publication after market close

GROUP OVERVIEW

The LDLC Group was one of the first to venture into online sales in 1997. As a specialist multi-brand retailer and a major online IT and high-tech equipment retailer, the LDLC Group targets individual customers (BtoC) as well as business customers (BtoB). It operates via 15 retail brands, has 7 e-commerce websites and close to 1,000 employees.

Winner of a number of customer service awards and widely recognised for the efficiency of its integrated logistics platforms, the Group is also developing an extensive chain of brand stores and franchises.

Find all the information you need at www.groupe-ldlc.com

ACTUS

Investor & Media Relations

Margaux Rouillard / Marie-Claude Triquet

mrouillard@actus.fr – mctriquet@actus.fr

Tel.: + 33 (0)6 84 83 21 82