DGAP-Adhoc

CECONOMY AG updates outlook for financial year 2020/21

DGAP-Ad-hoc: CECONOMY AG / Key word(s): Forecast CECONOMY AG updates outlook for financial year 2020/21 11-Aug-2021 / 17:35 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Almost the entire current financial year 2020/21 of CECONOMY AG ("CECONOMY") was impacted by the COVID-19 pandemic. Prolonged temporary store closures and further restrictions in brick-and-mortar retail led to a significant impact on the business, particularly in the core market Germany: here, stores were not able to fully reopen until June 2021 - after nearly six months of closures and severe restrictions.

Thanks to sustained high customer demand for consumer electronics in countries less affected by COVID-19 restrictions and strong growth in the online business, CECONOMY increased its currency- and portfolio-adjusted sales by 5.4 percent year-on-year in the first nine months of financial year 2020/21. In the same period, adjusted EBIT came in at €106 million and was only €7 million lower than in the previous year (9M 2019/20: €113 million).

Based on the business performance to date and the current insights, particularly with regards to catch-up effects and customer behavior since the reopening of stores, the Management Board of CECONOMY is now updating its outlook for current financial year 2020/21 following the suspension of the outlook on 11 February 2021. Uncertainties regarding further pandemic developments remain, also in light of the volatility of regulatory measures. The outlook is therefore based on the assumption that there will be no new restrictions from the COVID-19 pandemic in the remainder of the financial year that will again impact the stationary business.

For financial year 2020/21, CECONOMY now expects a slight to moderate increase in total sales adjusted for exchange rate effects compared to the previous year (2019/20: €20,790 million). The Western/Southern Europe and Eastern Europe segments are expected to contribute to this increase, while the DACH segment, which has been affected for the longest time due to temporary store closures and strict restrictions in Germany in connection with COVID-19, is expected to show a slight decline.