Ceconomy AG Q3 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Clement Genelot - Bryan Garnier & Co Ltd, Research Division - Analyst : I've got 3 questions from my side, if I may. The first one is regarding the rumors surrounding the search for new CEO. Could you just clarify the role of Dr. Dnttmann going forward? My second question is regarding the traffic -- the in-store traffic in the Iberian peninsula. Do you already see, let's say, new traffic hit because of the recent restrictions that was put in place both in Spain and in Portugal? And my third question is regarding the store closures. So beyond the 14 store closures, you mentioned potential new closures. In which countries do we have to expect such closures? I'm reminded of Poland, which is a tough country. But maybe I'm wrong. :p id="E01" name="Bernhard Dnttmann;CEO" type="E" /> Clement, I will take the first question because you were asking about my office, how will it continue beyond this curve or when will it end? Because I think you know that I'm delegated from the Supervisory Board. So my current term ends on October 16. And it's up to the Supervisory Board to make a decision on any measure about it. I have signaled I'm flexible. I can continue beyond October, if I can help the company. And I expect that the Supervisory Board will communicate in due time. Ferran Reverter Planet - Ceconomy AG - CEO of of Media-Saturn-Holding GmbH Okay. Related to Iberia. Well, obviously, there are some reasons that are attached for the restrictions, special city centers. Nevertheless, let me say that looking at the sales, Spain is keeping the momentum. So the sales trend in the country generally are doing fine. They are doing a good job there. And related to the network reduction, about the 14 stores, yes, we have 6 store closures in Poland, 4 in Italy, 3 in Germany and 1 in Spain. And depending on the trend, the further closures will come across Europe as well. But it's not yet decided.

Question: Clement Genelot - Bryan Garnier & Co Ltd, Research Division - Analyst : Just 1 question. You have mentioned that the centralization of purchasing was already reaching 90%. So do you think it is now time to once again review your alliance with Fnac Darty? Ferran Reverter Planet - Ceconomy AG - CEO of of Media-Saturn-Holding GmbH I think we are doing now the first steps in centralization. It's true that we are at 90%, but still the category management project is ongoing. So we are not looking at this topic right now. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2020 / 6:30AM, CECG.DE - Q3 2020 Ceconomy AG Earnings Call :p id="E01" name="Bernhard Dnttmann;CEO" type="E" /> We always said that we focus on our internal transformation first. And we are not done yet in this regard. We have seen usual progress, but we have always said it's category management, it's logistics and it's systems, it's all 3 together. And only when we have achieved all of it, we are basically done with it. And just the purchasing or 95% purchasing is not yet the key. So it's not yet finished.