Ceconomy AG (CEC) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to our Strategy Day. My name is Fabienne Caron. I head Investor Relations and Corporate Communication department, and I will be your guide today. Before we begin, let me briefly refer to the disclaimer including in today's presentation. We meet today in an hybrid setting and the event is being recorded. A replay will be made available afterwards. The presentation with last around 90 minutes after that, you will have enough time for your questions. For those joining us online, questions can be asked either by phone or via the chat box below the webcast. So 3 years ago, we met for last Capital Market Day in Cologne. At that time, we share where CECONOMY stood, what we were focusing on and how we intended to move the company forward. Today, we meet again, but in a different place, and also at a different time in our journey. This time, we are here in Hamburg in our lighthouse. The name we give to our flagship store format. And that is a fitting image, a light house give orientation, create visibility and helps navigate through change. That is exactly what today is about. We will show you the next phase of our strategy, where we are heading, what will drive value creation and how we intend to deliver. For those of you here with us in Hamburg, we invite you to join us for refreshments after the event, where you will also have the opportunity to meet CECONOMY and MediaMarktSaturn leaders and take part in a store too. And now to open the strategic part of today's event, it's a pleasure to hand over to our CEO, Remko Rijnders.

Good morning, everyone, also from my side. Thank you, Fabienne. Three years ago, we introduced our experienced electronics strategy to you. We had a clear target to reach adjusted EBIT of EUR 500 million by fiscal year '25, '26. Some were skeptical. Indeed, it was ambitious. It represented nearly doubling our adjusted EBIT over 3 years. Well, we are going to make it. Today, I'm proud to say we will hit that mark. We have worked hard to bring our experienced electronics strategy to life. And none of it would have been possible with our 50,000 employees with the dedication, commitment and hard work. So thank you. Thank you again for everything you have done. What we have built is great, but it's just the foundation because our world is changing, AI, digitalization and less options, we have infinite choice. There's 1 thing that helps us make decisions, trust. Trust is the decisive factor for our customers. Our brands and [ body ] trust, MediaMarkt, Media World and Saturn are beloved by millions of customers across Europe. They stand for tech innovation and for customer centricity. The customer is at the center of everything we do. We create long-term relationships across the entire customer life cycle. We create trust in every interaction online, in-store or through our services. We create value and are determined to become best-in-class. Financially, this translates into a clear ambition by fiscal year '28 '29. We are targeting EUR 800 million adjusted EBIT. That means increasing our adjusted EBIT by 60% and over the next 3 years. And yes, I can already see some skeptical faces. But let me say this clearly. We will achieve this target. This path is clear. And you will hear the details from me and my colleagues today. We are turning customer experience into moments of trust and trust into sustainable growth. As you can see, we are moving fast, and we are not slowing down. You all know that we announced our partnership with JD.com last July and expect approval for the transaction in the second half of this year. With JD.com as a strong partner, we will be able to accelerate our strategy. Today, we want to present the next chapter of our strategy for the next 3 years. As you have probably already noticed, the focus of this chapter is trust. Together with 9 of my colleagues, I will share the next steps we plan to take. You will hear from Niclas our Chief Customer Officer; Iris, our Chief People Officer; and Michael, our Chief Marketing Officer. [ Kathy, ] Alex and Guido are also here to answer your questions. Together, we stay at MediaMarktSaturn and CECONOMY. And together, we are creating the future we are presenting today. I have 1 additional announcement to share with you today. I am pleased to announce that we will soon as a new member of the Board. Our new CFO will start in Q4 of this calendar year, and we will share the details in due time. Before taking you on our journey into the future, let's take a moment to look back. As I've already said, we are extremely proud of what we have achieved over the past few years. On our 2023 Capital Markets Day, we introduced our experienced electronics strategy. Over the past 3 years, we have executed it, and we have been successful. First, -- we have taken consumer electronics to the next level. Classic retail has become experienced electronics along 4 dimensions: employee, shopping, usage and impact experience. Second, we have strengthened our strong customer relationships. We are building lasting long-term connections rather than simply shopping interactions. Third, we are seamlessly linking our business areas. This makes us an omnichannel service platform. We combine multiple business areas under 1 roof. And this has made us more than a retailer. Looking back, some may have doubted our ability to deliver. Can we shift our business and become an omnichannel service platform? Can we increase our profitability? Can we grow in a challenging environment? Well, we can. We have delivered year after year. Our financial performance is strong. We are on track to achieve our headline ambition of EUR 500 million in adjusted EBIT and to strengthen our cash generation as reflected by our free cash flow of EUR 337 million in fiscal year '24-'25. We are delivering on the operational targets that we have set ourselves. What you can see here are 9 key pledges. They help us measure the implementation of our strategy. The picture is clear. We are on track. And we will even exceed 5 out of our targets. We have achieved 58 million loyalty members. We have improved our net working capital by reducing our stock reach by 16%. We have increased our income share of services solutions to 6%. Our marketplace has GMV of EUR 800 million. And finally, we have grown our retail media income to EUR 150 million, more than 3x our initial target number. This transaction is clear and shows that we, as a company, together with the colleagues are moving into the right direction. Why do I believe that we are ready for the next chapter because our foundations are stronger than ever. Our employees are proud to work for MediaMarktSaturn. Our Net Promoter people score which we measure our employee satisfaction is at an all-time high of 44. We have embedded a customer-first mindset into our organization. It has truly become part of our DNA, and our NPS shows this. It increased by 10 points to 63 over the past 3 years. We have successfully repositioned our brands around the theme of experience, and our brand value has grown to over EUR 2.1 billion. We have transformed into a general platform business. More than 40% of our gross profit now comes from outside traditional retail. This is the foundation we can build on. I know you are all waiting for details on our partnership with JD.com. We are still going through the regulatory process required to close the transaction, and I will come back to that later on. The key point is this, JD.com and CECONOMY share a fundamental set of convictions. We both put the customer at the center. We both believe in omnichannel and we both offer high-quality leading brands. Our partnership will enable us to execute on our strategy even faster, particularly in 2 areas that are central to our ambitions, supply chain and technology. The partnership will take experienced electronics to the next level. We have come a long way, and we will accelerate even more. We are taking our strategy to the next stage. But we are presenting today deliberately an evolution, not a reinvention. Our strategy has consistently been delivered. Our experienced electronics strategy is working and paying off. And we want to continue on this path, always with the customer in mind. The core belief remains the foundation of everything we present today. What has evolved is how we engage customers across the different touch points. We consistently link our offering. Let me give you an example. Customer assets for a product on our marketplace. They can set an individual price alert. After a push notification in our app, they order the product and pick it up in 1 of our stores. We will use both existing channels and new opportunities. An important level will be agentic commerce. It will change how customer discover, decide and shop. Niclas will share this with some more insights later on. AI is powerful, but we have something equally meaningful, unique personal customer experience. Combining the 2 AI-driven intelligence with general human interaction is where true competitive edge is built. We create experience electronics that matters. This experience earns moment of trust. Let me explain. We are living in a paradox right now. AI is delivering more transparency than ever before. more options, more information and yet we feel lost. Think about it. You walk into a store, open an app, browser marketplace, Infinite choice stares back at you. algorithms flat you with recommendations, prices flash review contradict each other. New sellers appear. Your data has been tracked, analyzed, personalized sometimes in ways that are rarely explained to you. You ask yourself, who can I rely on that is what millions of our customers ask us every single day in real conversations. They do not just want more options. They want someone they can trust. And here what's sticking. The more powerful the technology becomes, the more obscure the algorithm, the more data involved, the more critical trust becomes as a differentiator, price, product range, convenient, important, yes, but trust. Trust is the lever that builds new relationship. Trust is essential value driver. And 1 of the most competitors simply cannot copy. We have 50,000 colleagues who build trust general human interaction. Over 1,000 of stores, a brand portfolio that is among the most trusted in consumer electronics across our markets. In a world of infinite choice algorithm-driven decisions, trust isn't a nice to have. It's a competitive advantage. Trust is built through 4 experiences. We have spent 3 years mastering, employee experience, shopping experience, usage experience and impact experience. With each of them, we build moments of trust. We have the best people. They create authentic personal interactions that cannot be replicated. We offer our customers the right selection, and we guide them through an increasingly complex market to the products that best meets their needs. We support our customers throughout the full product life cycle, wherever and whenever they need us from finding and buying a product, too, installing repairing, upgrading and recycling it. And we take responsibility for the ecosystem that we operate in, always driven by the highest standards. Let me take a few minutes to bring this to life. Our single most important differentiator remains our employee experience. No online-only competitor can replicate at 50,000 trained colleagues deliver across 1,000 stores daily. This is primarily the differentiator. We offer our customer personal interactions. I truly believe AI offers many advantages, but it won't be able to replace face-to-face interaction. Customers who interact with our colleagues convert at higher rates, spend more per transaction and come back more often. AI can be a facilitator to make our teams more effective giving them the right information at the right moment with AI-generated insights, Niclas and Iris will come back to that later on. In shopping experience, our focus is on relevance. We offer the right products and services at the right moment. We select the best products for our customers. We bring global innovation to customers all over Europe. We put relevance over volume. We are deliberately moving away from mass communication. We create personalized touch points through tools like our price alert feature. We know what our customers need. We use rich data pool to exchange their shopping experience. And to announce it, and to create tailored services. In short, we delivered literally the same day. 90 minutes delivery is a clear example of what our omnichannel network enables. Services where most retailers embed their customers. We do the opposite. Our smart bars are becoming full-scale support hubs. They offer rapid diagnostic and immediate resolution. But first aid support isn't everything. We stay with our customers across the full product life cycle. We are present. We are accessible. We are on their side. This is how long customer loyalty is built, not through loyalty programs, but for being general useful across the life of the product. Impact experience reflects a straightforward belief how we operate matters as much as what we sell. We want to connect sustainability and affordability for our customers. However, impact experience has expanded beyond sustainability into how we select and manage the ecosystem we operate in. We have a responsibility when it comes to selecting and managing our partners. Whether they are service partners, such as repair providers, operational partners such as logistics providers or partners who sell on our marketplace or showcase their products in our stores. We hold them to the same standards we hold ourselves on product quality, data ethics and customer service. If they cannot meet that bar, they don't operate in our platform. Trust to me also means taking ownership of the ecosystem we operate in. So how do we win in this environment? When customers ask, who can I trust we answer with moments of trust, not just once, but in every interaction, every touch point, that's our strategy. It's built across 4 experiences working together. And there is the competitive edge against online first retailers, advantage is physical presence at scale. 1,000 stores with personal advice. Hence, on product experience and direct personal service in 1 place. Against established competitors, our lever is personalization at scale. AI-powered customer journeys, delivered through colleagues who know their customers. This is human trust that drives real loyalty. Our partnership with JD.com will accelerate our logistics and tech capabilities. As a leading global supply chain based technology and service provider, JD.com has cutting-edge retail infrastructure that enables consumers to buy whatever they want whenever and wherever they want it. We link omnichannel death with human expertise. This is what our competitors cannot match. We have a clear answer to the question that shapes retail right now, moments of trust delivered at scale across all channels, that's the driver of our competitive advantage. The data is ambiguous. Customers who trust us are worth significantly more. Trust is what sets apart the customer experience as MediaMarktSaturn. The data also shows this, customers who trust us visit more often. They buy more products, engage more with our services and report higher satisfaction. The result is a measurable higher customer lifetime value and in a business model that compounds as trust deepens. Moments of trust aren't just the right thing to create. They are the most valuable thing we can create. We turn customer experience into moments of trust and trust into growth. Let me give you a concrete example. A customer walks into 1 of our lighthouse stores, like the 1 we are in right now, in a single visit, they experienced the full power of what we have built, omnichannel core services and solutions, private label, are boutiques as part of Retail as a Service, retail media, what we call our growth business have matured from an early stage to proven contributions. And I'm sure they will grow even more because they enhance our omnichannel core with even more relevance for our customers, 1 seamless experience, multiple value streams, multiple moments of trust. You have already heard me reference our 9 key pledges. They show our commitment to keeping you regularly informed on the progress of our strategic implementation. What you see here is the updated set, some pledges carryover, other reflect the evaluation of our strategy? We are anchoring our moments of trust ambition into 2 critical KPIs. NPS and repurchase rate. You can ask why these 2? On the 1 hand, NPS measures satisfaction. We have added 10 NPS points over the past 3 years and now target an NPS of 66 by fiscal year '28 '29. On the other hand, repurchase rate. It measures stickiness through loyalty and we will increase our repurchase rate from 46% to 54% in the same time frame. Moments of trust create long-lasting customer relationships. And these relationships translate into concrete business outcomes, EUR 1.6 billion gross profit in Services & Solutions, nearly EUR 2 billion in marketplace GMV, a private label share of 7%, EUR 90 million in gross profit from retail as a service and EUR 230 million in retail media by fiscal year '28 '29. This growth achieved at a moderate top line expansion. We will drive profitability. Over the last 3 years, we have more than doubled our adjusted EBIT. Now we set ourselves an ambitious target EUR 800 million adjusted EBIT in fiscal year '28, '29, driven by further profitability gains in our growth areas as well as effective synergies from our partnership with JD. This would represent a strong 3.3% adjusted EBIT margin. At that level, we are moving firmly into best-of-class territory. And let me be clear about this, the 50,000 exceptional colleagues, given that they're all, building moments of trust day after day, the top is exactly where we belong. My colleagues will now take you through the growth plans behind each of these ambitions in detail. Let me hand over to my dear colleague, Niclas Brandt.

Thank you, Remko. When we talk about moments of trust, one thing is crucial. Delivering great customer experiences consistently at every touch point. Over the next slides, I will outline our operational and strategic priorities. They will help us to improve customer experience. And they set us apart in the areas that matter most. Trust from the customer perspective is straightforward. They expect us to understand their needs and follow through reliably. Our customers set a clear bar. It just works every time without exception. It starts with the basics of retail, having the right assortment available at the right price across channels. It's about good advice and support in store on the phone or via chat. Another very important element is delivery or pickup. Here, it's not just speed that matters, but with liability an on-time performance, too. And it doesn't end with handing over the product or service. As a customer, I must trust that if something goes wrong, MediaMarkt will take full ownership and find a resolution. My honest assessment at this point, we are already doing many things very well. Our aim is to build on this and deliver experiences with much more consistency, something that our customers expect, that is a strategic priority. Achieving this consistency will require us to build processes and deliver operational excellence. But strategically, it goes further than that. Consistency alone won't be enough. What we said as a part is relevance, making every interaction feel like it was designed for that individual customer and not just any customer. The right message at the right moment, personalized communication, a journey that reflects what we know about each customer. That is the layer that turns a reliable experience into a memorable one and a satisfied customer, ultimately into a loyal one. On the following slides, I will focus on a few selected examples. We have simplified the customer journey into key promises and service levels that define today's experience. I want to highlight where we set ourselves apart and show where we are investing further. Customer journeys always include digital elements. And whenever and wherever possible, we connect them to the in-store experience. It starts with the discovery. This is 1 of the most critical moments in the journey because it's where we must win an increasingly scarce resource, customer attention. Our focus is on strong content and an excellent online experience. If customers or agents cannot find us and if surge in navigation, on simple and effective enough we will lose a significant share of customers. And with that demand. And at the same time, we continue to enable omnichannel journeys. Appointment bookings is a strong example for that. And for customers who don't want to visit a store, we already offer personal advice through video live consultation supported by many partners such as Apple, Dyson, Miller or JBL. And the next step is to take this discovery 1 step further by offering life consultation directly from the store. As customers move from discovery to selection, they need to feel confident that they are finding the right product or service especially when they don't know exactly what they are looking for. This is 1 of the areas where we still see significant room for improvement. Because search behavior is changing fundamentally. And AI will help us close part of the gap. What is changing is that customers are no longer only searching for a specific product? Increasingly, they describe a need or ask a question. Customer interactions in the digital world are becoming much more conversational and this is exactly where conversational search becomes relevant instead of searching for a model, a customer might ask, what is the best TV for a World Cup party. And even sorry to say if Germany is out, there's still a great excuse to upgrade your viewing experience. With AI and agents, we can support this type of search much more effectively. Instead of getting lost in endless options, you simply tell us what you're looking for. And in seconds, you see the best choice for you, including prices, availability and customer reviews. As this example you can ask follow-up questions, compare different options and ultimately receive personalized recommendations before making the actual decision and adding it to the basket. At MediaMarkt, we know that 1 of our strongest assets is our people, and AI won't change this. In fact, we are taking these AI capabilities and enabling our store colleagues. We are developing an AI-powered sales assistance for our employees enabling better product comparisons, deeper product knowledge and more relevant advice directly at the point of sale. When it comes to pickup and delivery, we have already set clear standards in the market with 30 minutes pickup and 90 minutes express delivery in many cities. And at the same time, we are continuing to improve the end-to-end purchase journey. One important step now being rolled out in Germany is the direct pay on shop floor allowing customers to complete the purchase right on the spot. Another important element of the journey is 2-person delivery for buy key items such as washing machines or dishwashers. Delivering large appliances, including installation, with consistently high quality is a very critical part of the overall customer experience. This makes it an important opportunity to further elevate our service problems. And beyond the sale, customers expect transparency at all times. This includes status updates for deliveries, repair orders and refunds. Providing this visibility is crucial to build trust and reduce friction across the journey. This is exactly why our teams are working on real-time tracking capabilities that give customers easier access to relevant status information throughout the entire process. For example, this will be introduced for repairs by Q2 financial year '27. And just as important as the relationship, it shouldn't end once the purchase is completed or a service case is closed. As part of our personalized service program, we are rolling out additional contact options that can be assigned directly to individual stores, helping us to stay in touch with customers in a more personal and relevant way. Now our AI road map is built around 3 transformation bets to improve the customer journey end-to-end. All 3 bets are being piloted or tested this year. And in future will be built on a shared data foundation and AI platform to create a connected customer experience. According to recent studies, Electronics is the #1 category for AI-assisted shopping. We are adapting to this changing customer behavior by increasing our visibility on external AI platforms through enhanced content. And we will enable our own platforms to provide AI-powered advice and inspiration directly to our customers at scale. Human led AI-powered conversations bring AI into the in-store experience in a way that strengthens and not replaces human intention. For customers, this means more personalized and more relevant advice. We are already testing a solution which helps our customers to better reflect each customer's individual measures and preferences, making every consultation more tailored more informed and ultimately more valuable. And in customer care, we are evolving our existing AI powered chatbot to the next level. It will become a broader customer support solution that delivers faster, more reliable and more personalized assistance. As an example, proactively reaching out to customers who bought a complex to install product and offering them support via chatbot that increases customer satisfaction and also reduces the likelihood of returns. And ultimately, we want to make this measurable. Revenue matters, yes. But as Chief Customer Officer, the most important metric for me is the NPS and our long-term ambition is to raise it towards 70 points. If you succeed in serving customers well and create experiences that make them choose us again, we will create real value and become more relevant in their lives. Once we are more relevant, customers are more likely to become loyal and here, our ambition is clear. We want to grow our loyalty base. And crucially, we wanted to be active. This means customers will choose to return repeatedly and not just once. We measure this as a share of returning customers, those who return to make at least 1 more purchase. And with the experienced electronics strategy, we have already built a strong foundation in returning customers, increasing from 46% to 50% over the past 3 years. Now we are committing to grow it to 54% by the financial year '28, '29. This commitment requires us to deliver a more consistent, more personalized. And more personalized experience where customers need our responsibility. At every touch point, if we get this right, we won't just serve customers better. We will trust strengthen loyalty and create long-term measurable value. One key enabler for this is the app. As you may have seen in the previous slides, -- every customer gets their own version of MediaMarktSaturn seamlessly connecting the in-store and digital experience, a personal concierge proactive, relevant and always on. But more than convenience, the app is how we stay present in our customers' lives, not just when they need a product, but on every step of the journey. Talking about every step of the journey, let me hand over to my dear colleague Henny. She is our expert for Services and Solutions.

Thank you, Niclas. Let me show you why our service and solution portfolio will continue to be the key driver of customer value, strengthening our offering well beyond product. You all know the services we have been offering for a long time from telecom contracts and financing insurances, repairs, trade in, it's a strong growing business. And we are on track to exceed our target by the end of the fiscal year. We have added subscriptions and bundles starting with warranties and digital content services. In our bundles, we combine service products that are a perfect match in daily usage. For example, antivirus software and a new laptop. In doing so, we drive attach gross profit and convenience for our customers. Following the same logic, we have launched life advisory services on our digital channels. We have provided personalized advice on goods and services online and remotely. For many of our offerings, we work with a range of known partners, but our promise to the customers remains clear. We take ownership across the entire journey, including the quality of what our partners deliver. Customer experience is at the heart of how we steer the business. We always have the customer in mind. How can we make life easier? How can we reduce complexity. This is how we are expanding our service and solution portfolio because we believe that retail is about more than sales incentive schemes. We have prioritized customer satisfaction measured by the Net Promoter Score, NPS for short. Our customers also highly value our service and solution offer. We saw a 60% improvement in NPS for after sales and repair over the past 3 years. In recent years, Service & Solution has evolved from a number of separate initiatives into a real value engine on where different areas strengthen each other and drive growth. We've made things simpler for our employees, and we scale the best practices across our countries to the entire group. We've made strong progress in expanding our online service and solution offering, including the rollout of our core portfolio in insurances, branded services in multiple countries. But we also know there is still significant untapped potential. One of our key priorities now is to bring online service experience up to the same level as the in-store experience already is. At the same time, we are streamlining the business around clearly defined service areas by unlocking international synergies. We have also started to integrate services more efficiently, for example, through bundles that combine laptop with installation and additional subscription services. As a result, gross profit has grown significantly by EUR 300 million and is expected to reach EUR 1.4 billion in fiscal year '25, '26, going significantly above our pledge from fiscal year '22, '23. Going forward, we plan to continue growing and reach a gross profit of EUR 1.6 billion by fiscal year '28 '29. How will we get there? Operational excellence will remain a clear priority for us. But it's as important as our ability to scale the propositions that customers truly value and to scale them across the group quickly and efficiently. That is why the clearer structure we are building around distinct services matters so much. It helps us to make successful offerings from 1 market and expand them across the group, creating more values for customers and partners alike. We are also connecting our business much more -- our businesses much more closely through service bundles, subscriptions, the marketplace private label, retail as a service and retail media. We are building a more integrated offering. These aren't stand-alone activities. They reinforce each other and make our customer proposition stronger. And through all this, the customer remains at the center. We expand our digital service offering AI-guided selling will help customers navigate their decision journey and find the solution that fits their needs best. The telecommunication category is a great example of an opportunity ahead. It was 1 of our first service businesses, and it still has a strong potential to grow. Building on what is already live in Germany, the Netherlands and Austria, we will expand internationally, while also addressing where we can capture more of the value chain by operating as a so-called MVNO, mobile virtual network operator ourselves. And then there is circularity an area that is especially important to us from better way products to repair, refurbishment and trade-in, circularity isn't only a growth driver, it is also a real differentiator for our customers. Let me say a few more words about this. Through circularity, our customers can engage with the circular economy at every stage of the product life cycle and benefit financially along the way. take smartphones as an example. Customers can choose a better way product, keep it in use for longer through repair, traded in for a voucher when they are ready to upgrade or opt for a refurbished device as an affordable alternative to buy new. With better way, we've created a clear product identifier that points customers towards the most energy-efficient and sustainably produced products in our range, and they value it as a genuine orientation tool. Using certified labels and the guidance of the European Energy Efficiency class label, we have more than doubled the sales share to over 11%. Our refurbished offering is increasingly sought after by our customers. It's an attractive alternative to new products giving them access to leading brands at more affordable prices, while making more environmentally conscious choices. This year, we expect to sell 675, 000 refurbished units significantly driven by smartphones. Our repair offer extends the life cycle of devices. Together with our partners, we have repaired approximately 3 million devices for our customers. We are particularly proud of our trade-in offer available across all channels. Customers can return their use device and receive a voucher in exchange. It is good for the circular economy, good for the wallet and another strong way to build trust. Over the last 3 years, we have tripled our trade and volume to more than 600,000 devices. Circularity isn't just a sustainability narrative, -- it's an established customer offering with real scale, and we see further growth potential in this area. Going forward, we will further grow our BetterWay sales share. We want to sharpen our focus on energy efficiency and attractive bundles. A major lever is combining better way products and complementary services and accessories and integrating them with our private label range. Our refurbished offering will grow into a new category, guided by customer demand, including tablets, wearables, notebooks, and selected household appliance categories. We won't take a blanket approach, but instead focused deliberately on the categories and brands where relevance to our customers is the highest. Quality is at the heart of our repair offering. We follow a dual approach to optimize both customer service levels and operational efficiency. We leverage both our smart bars as our own local service centers for fast repairs and direct on-site support, and we work with a network of trusted repair partners, to extend our proposition. We will continue to expand our trade-in offerings. A key part is a new model where multiple trade and partners are bidding for 1 device and the customer gets offered the best price. It is already live in Spain, in Turkey, and we're now rolling it out internationally. By '28 '29, we expect this to grow to as many as 1.4 million trade-in transactions. So let me summarize. Service & Solutions is a core trust engine for our omnichannel strategy. And its role is becoming even more important. We have built the foundation, proven strong customer relevance and create scalable service areas. Now it's about taking the next step, scaling these capabilities across channels and markets to deliver sustainable and profitable growth. The next section also focus on sustainable, profitable growth. I'll hand over to Christian, CEO and Vice President, Marketplace.

Thanks, Henny. Let me now turn to our marketplace. We launched our marketplace back in 2020. Since then, it has become an important part of how we give customers more choice and how we make our offerings more relevant. At the same time, it helps us improve our net working capital position because we don't carry the stock for the inventory ourselves. Over the past 3 years, our marketplace has really gained momentum. We have launched in 6 additional countries and increased our assortment massively. It has grown from around 1 million SKUs in 2023 to 4.2 million SKUs as of today. Nevertheless, our approach is very clear. We are in building a generalistic marketplace. We are building a specialized marketplace. And at the center is 1 thing. Trust. This means we are working with carefully selected sellers. Together, we set a fair and transparent rule, and we offer complementary high-quality assortments in consumer electronics and adjacent verticals. This allows us to expand our portfolio in a very targeted way. Now first, we keep strengthening our core consumer electronics business. We offer long-tail assortment more choice, better availability and refurbished products. Second, we are expanding into adjacent verticals like health and sports, e-mobility, choice and energy. And right now, 1 of our highlight categories is gardening and barbecues with a bit of sunshine and the World Cup on the screen, this category should be hard to stop. So to sum it up, marketplace isn't about volume at any price. It is about creating relevant choice for our customers through creation and quality. This approach fits our brand and lives up to the trust MediaMarktSaturn stands for. Looking back, marketplace has developed strongly over the past few years, and it's increasingly becoming a strong traffic and EBIT generator for the group. GMV has grown from EUR 140 million in fiscal year 2022, 2023 to EUR 800 million in 2025, 2026. This means we have clearly outperformed the target we set at our last Capital Markets Day. This progress is built on much stronger foundation across the business. We have rolled out our marketplace platform to 9 out of 11 countries, services that our customers known well are also entering our marketplace. We are having added several payment options for marketplace like TWINT in Switzerland and consumer financing in Spain and Austria. And since October 2025, customers in Germany have also been able to purchase warranty extensions for marketplace products. We have also expanded into new verticals. To give you an example, Today, we offer more than 2,500 SKUs in solar panels and power stations. Refurbished is also growing massively. Over 33,000 SKUs have refurbished offerings as an affordable and sustainable alternative. We have also taken the first steps in establishing true omnichannel marketplace, including initial showrooms collaborations with marketplace sellers in our stores, our real USP. At the same time, our strong tech backbone is helping us move faster and create smoother experience for both customers and sellers. In 2025 alone, we launched our marketplace platform in 3 countries. And this shows you how far we have come. Marketplace is no longer just an add-on to our omnichannel core. It's becoming a much more important part of our ecosystem with more scale, a broader curated assortment and a strong operational base. Building on this foundation, we have set ourselves an ambition target to more than double Marketplace GMV. We are starting from EUR 800 million, representing 3.5% of group sales. Our aim is EUR 1.9 billion representing nearly 8% of group sales by 2028, 2029. This next stage of growth will be driven by a clear set of levers. First, we will finalize the rollout of our platform, bringing the marketplace to Hungary this coming September. Second, we will broaden the service offering. We want to give our customers on our marketplace access to those services that define our retail proposition. This includes payment methods, warranty extension in all countries and services for large appliances like washing machines and TVs. Our plans range from delivery to the place of use and professional product installation to wall mounting and ready-to-use setup. Third, we will continue expanding their assortment, additional sellers, more SKUs and new verticals. We will use data-driven approaches to identify customer demand and high demand products. This will help us to make them immediately available at MediaMarktSaturn. Fourth, we will deepen omnichannel integration, how so we will enable in-store pickup and returns. Additionally, we will integrate marketplace sales more directly into our store portfolio. And lastly, we will continue to strengthen the platform with futures and features deeper in the system integration. We are working on a fulfilled MediaMarktSaturn offering for our sellers. We will take over their stock management and provide the last mile logistics. This will make us an even more attractive partner while unlocking additional profit potential. Our marketplace has come a long way. And over the next 3 years, we will make it a central pillar of our offering, our customer experience and our value creation. Our private label offering has also come a long way since our last Capital Markets Day. So let me now hand over to Michael.

Private label is a key part of our value proposition across the segments. Our private label brands stand for curated assortments, a strong price performance ratio, proven, reliable quality and increasingly a clear sustainable profile. Over the last past 5 years, we have significantly increased the presence of our private label brands, both in-store and online. This means broader product listing, greater visibility and a stronger brand presence throughout the customer journey from discovery to purchase. Today, we operate with 4 brands, okay, easy, chronic and peak. Going forward, we will streamline the portfolio in order to sharpen the positioning, increase customer touch points per brand and improve communication efficiency, starting with the entry-level price segment. Looking back, we have made strong progress over the past last 3 years, both in increasing the economical relevance of private label and in building trust in our products. Already, we will likely exceed the 5% sales share milestone only next year rather than this year. Looking at those categories, we will actually offer private label, the share is higher with 10.8% rather than 4.3% overall, showing that in the parts of the business, where we're actively competing private label already accounts for more than 1/10 of the good sales. This momentum is also visible in several clear proof points. Product quality is increasing confirmed by our consumers. Our customer ratings in many categories are now at a level comparable to the leading brands. We also expand our presence beyond Germany and Austria supported by additional logistical capacities to import directly to Italy and Spain. And sustainability, we have continued to build on a strong foundation and supplier certification, while the carbon fiber footprint for our private label products has improved faster than in the rest of our assortments. All this strength customer trust and increase the relevance of our private label business even further. Our ambition is clear. Over the next 3 years, we aim to increase our private label share to 7%. We will report this in full transparency and include refurbished products as a part of our private label sales share from now on. Refurbished should contribute close to 1 percentage point. Now it's important to put this into a context. There are key categories in our assortment like smartphones, gaming consoles, where private label is simply not relevant. But in the categories where we're active, such as microwave air conditioning and accessories, our private label share is already much higher and in those categories, we want to grow in the sales share further from 10.8% to 12.8%. This phase of growth will be driven by a clear set of levers. First, we will broaden the assortment into attractive giant categories just as health, pet care, gaming accessories. Second, we will streamline our private label portfolio to increase customer touch points per brand and improve communication efficiency. Third, we will integrate private label more consistently in our commercial execution with stronger links to promotions, campaigns and retail media. Fourth, we will broaden reach and further strengthen our operational capabilities through social commerce, direct import structures and more B2B processes. And fifth, sustainability will continue to be an important part of our proposition. We want to make our most efficient and sustainable products more visible to consumers and use this as a clear differentiator. In summary, -- our private label business has built strong momentum. Over the past years, we will still see significant room to grow this even further from here. Our fourth field is the closest to my heart. Let's talk about Retail Media. Our Retail Media business has delivered continuously profitable growth since our Capital Markets Day in 2023. At the same time, our approach has evolved. Our portfolio is expanding from a mainly on-site offering to a more comprehensive 360-degree omnichannel proposition. We now give our partners the opportunity to be present at all touch points where customers make purchase decisions. This can be on site, meaning on our own digital properties like our web shop, but also in our stores, and we will offer solutions beyond our own channels, for example, on other websites. Additionally, our partners get access to data analytics solutions which help them to make better decision when it comes to allocating their advertising spend. You can also see on the left-hand side here on the chart that we will continuously work on additional products over the next 3 years for example, digital out-of-home offerings based on what we know about our consumers across our omnichannel touch points, we can deliver exactly the right offer at the right time. This means we are highly relevant to our consumers in the decisive moment, giving us another opportunity to create moments of trust in this case, through superior relevance. The foundation we have established is clearly working. Gross profit from Retail Media surged from EUR 20 million in 2022 to 2023 to EUR 150 million in '25 '26. This means we have exceeded our capital market pledge for more than 3x, something we are extremely proud of. This is mainly driven by the international rollout of our product portfolio and it is clear that our partners see real added value. On the sales side, we have managed to close the international agreements with partners. We also benefit from bundling of many offerings to our suppliers and partners and we have generated significant business not only with friends, but also with advertising agencies. Looking ahead, we are staying on course for growth. Our ambition is to drive gross profit to EUR 230 million by 2028, 2029. And we have a clear plan how to get there. First, we will enhance our existing products with our rich first-party data, introduce new advertising formats, for example, in-store display and connected TV. Second, we will unlock new business potentials with existing customers as well with near and non-endemic partners, such as advertisers from the automotive, financial services or insurance sectors. And third, we will further integrate our retail media offering with other areas. This is how we will -- this will allow us to optimize our entire media with the media sales approach to unlock further potential, for example, by offering full range of retail media products to our marketplace. And fourth, we will put AI to work. We will unlock additional growth potential through real-time creation of content and ads. Combined with first-party data, this will allow us to partners to address customers with even more targeted, even more relevant and competitive offers. Overall, our holistic retail media approach is a social building block of our mission to be European's most trusted consumer electronics platform. It makes our offering more relevant to our consumers and it increases the attractiveness of our media offerings. It encourages greater advertising investment and improves our ability to manage media inventory for stronger earnings and profitability. But our media offerings isn't the only attractive part of our business. Our stores are, of course, attractive as well. And let me now hand over to Marcus, who will give you or will guide you through our retail as a service offerings.

Thanks, Michael, and happy to take over. When we introduced Space as a service on our Capital Markets Day 2023, the focus was mainly on the boutiques and our Lighthouse stores. This August, we will open our 12th lighthouse in Cologne. And on top of that, we have built a portfolio of space as a Service offerings catering to a diverse range of partners. Our partners can bring their products and brands to life, where it matters most, right inside our stores at spaces with high traffic and visibility. Our entrance statements, for example, are positioned right at the entrance to our stores. We have thousands of customers pass through every day. While today, we mostly act as a landlord for our partners, generating recurring rent. We plan to become an active retail operator over the next few years. Our partners will get far more than just space. We will offer logistics and operations, experts and promoters and the insights they need to succeed. In other words, we are creating a fully fledged retail as a service offering, allowing partners to focus on their products while we provide the retail expertise and infrastructure. This will open another opportunity to create moments of trust with our customers. We are bringing experienced electronics to life, making products from a wide range of brands tangible and truly experiential. We curate with very high standards, selecting only partners that meet our quality and relevance standards. And our partners can be sure that they will get direct access to the most relevant customer traffic while we take care of everything else. We have already established space as a Service offerings broadly across our stores. Gross profit has grown from around EUR 20 million to EUR 50 million over the past 3 years, which shows that the model is proven and scalable. And we have established the foundation in 3 areas: First, on the space side, we have internationally rolled out our standardized space as a service portfolio with entrance statements, experience zones and boutiques. Second, -- on the sales side, we have built a strong partner base of around 350 active partners. We have already expanded beyond classic endemic brands. For example, with Peloton and Therabody fitness and longevity innovators. Customers could ride on Peloton bikes right in our store here in this store. That truly was a win-win situation and generating attention for both the brands and us. And third, on the product and process side, we have established the infrastructure, data integrity, and transparency needed to scale even further. So the key message on this slide is clear. The foundation is in place. The portfolio, the partners and the infrastructure are ready for growth. Based on this foundation, our ambition is to grow from EUR 50 million today, to EUR 90 million in gross profit by fiscal year '28 '29. For that, we see 4 key growth levers. First, on the existing space offering, we still see clear headroom by increasing reach and by managing our portfolio more professionally. We will tackle this with a more tailored sales approach for different partners and smart pricing. Second, on the sales side, we want to professionalize further through a dedicated sales force and a much faster time to store. This is 1 of our KPIs and it measures how long it takes us from closing the deal with a partner to see the concept life in our stores. Our target here is less than 4 weeks. Third, we are adding new products, especially managed retail and market entry packages for partners who want to turnkey access to our platform. Well, what does that mean? Imagine you're a start-up company with a highlight product. From us, you get the all-in solution, including placement in our stores, marketing materials with storytelling, promoters, payment services and last but not least, data and analytics. Fourth, we are digitizing the offering itself. For example, through the digital boutique. This is a separate space with only LED walls surrounding the product placement. A change from 1 partner to another can be done at the click of a mouse. We see this as an autonomous room with 0-touch operations and, therefore, a very cost-efficient alternative. This will also go live, for example, in our new lighthouse in Cologne at the end of August. So overall, the path to a EUR 90 million in gross profit isn't based on 1 big bet, but on scaling the existing business further and adding a few exciting digitized and more service-driven products. Let me now hand over to Iris, who will walk you through our people agenda.

Thank you, Marcus. We've spoken a lot about our customers but great customer experience doesn't start with customers, they start with people and how we lead them. Their motivation and engagement to serve all customers' individual needs at the right moment. This is what makes the difference. With our people agenda, we have already built a strong foundation. On our Capital Markets Day in 2023, we announced that we would invest heavily in our people -- and today, we can see measurable progress. Let me point out some areas. We have embedded our company values, our leadership principles as well as diversity, equity and inclusion firmly in our organization. We established a strong campus 5 years ago, how we lead, manage performance, collaborate and develop our employees. We have created an environment where 50,000 colleagues trusted to do their best work every day. Our Net Promoter people score is our key measure of employee engagement and identification with the company. It works as the NPS and it has increased by 13 points over the last 3 years and 44 points over the last 5 years. And we have initiated first use cases of NI and powered workflows. One of this use case is our recruiting process for sales employees in which we have embedded AI to increase speed reduce human bias, focus on behavior according to our values and enable scalability. This is a starting point for more AI-enabled people processes to accelerate learning, boost human expertise and help our people to increase their impact across the organization for our customers. We are confident that we can become even better by focusing on 3 priorities. First, shaping our culture -- we will continue building a culture of pride, trust, learning feedback, 1 in which our people can feel connected to the business, supported by leaders and proud to work for us. Second, growing our people. We will continue to foster next-level leadership and invest in their capabilities or people need to thrive. For us, next level leadership means combining emotional intelligence with the opportunities AI creates, leveraging human expertise through a true AI human tandem. We will, therefore, continue investing in AI as well as transformation skills at scale enabling our people to serve evolving customer needs while strengthening effectiveness and employee experience across the whole organization. Third, focusing on impact. We will organize work in a way that helps our people become effective, more empowered and better equipped to deliver results. This includes data and AI -- this includes data and AI more systematically to make better database decisions for employees and the workforce management, for example, or by simplifying processes and increasing the impact of our teams across the organization. Therefore, we will continue to measure our Net Promoter people score as well as the leadership score and aim to reach a level of 46 and beyond over the next 3 years. We will also continue to measure diversity, focusing on several dimensions such as different cultural backgrounds or nationalities. For the share of women in the top 150 leadership roles, we will strive to achieve a level of 1/3 over the next 3 years. Ultimately, this underpins our ambition to shape a strong culture to keep developing our people and to focus on impact and thus first employee experience at MediaMarkt the whole organization. After all, we strongly believe that all people are a true differentiator for business, and for the customers. Another differentiator for our business is a topic which is also very close to my heart, sustainability. We have delivered the foundation and are now moving decisively to the next level. As shown on the left, we have not only achieved the key commitments we set ourselves at the Capital Markets Day in 2023, we have gone beyond them. Our operations reached net zero as early as 2024. We significantly exceeded our target of 80 towns and cities with zero emission delivery and now offer it in 120 cities. Additionally, our targets have been certified by the Science based Targets initiative. This gives us credibility -- but more importantly, this is the basis for the next step. Our focus is now on reduction of scope 3 carbon emissions where the largest scale of share -- of course not share -- scare of emissions occurs in the area of production, transport and use of customer electronics. It is more complex part of the agenda, but also the 1 with the greatest impact. That's why we have set the ambition to reduce Scope 3 emissions by 33% by 2033. To do so, we have a clear road map, more sustainable products lower emissions, logistics and closer supplier collaboration. So the message is simple. We have delivered our commitments and are now scaling impact in the areas that matters most. I will now hand over the floor back to Niclas for our data and AI technology.

Thank you, Iris. So technology is 1 of the key levers behind better customer experience, effective execution across the organization and scalable omnichannel growth. On the left-hand side, you see the progress we have already made over the past years. We have unified our data center environment and migrated 100% of workloads to the cloud as pledged during our last Capital Markets Day. We have advanced warehouse automation and getting in and almost all countries now run on a single web and app platform. Our focus is now 3 areas: first, the customer front end, based on a harmonized platform, we want to further improve the web and app experience and continue to scale and optimize the marketplace. The objective is simple. -- a more connected and seamless customer journey across channels, which is reflected in customer satisfaction and loyalty. Second, enabling capabilities. This is where technology directly powers commercial effectiveness through data-driven, predictive and real-time decision-making. Our focus will be logistics and on our enterprise backbone. And increasingly, this will also include the data and AI capabilities needed to scale these use cases more systematically. We are ramping up a dedicated AI platform team to rapidly generate business impact via AI and enabling our product teams to become AI native. Third, the tech backbone here the focus is on efficiency gains based on a harmonized cloud infrastructure. Cyber security remains a top priority for us. It is essential for resilience and scalability. But first and foremost, it's a crucial enabler of delivering moments of trust to our customers. Customers can trust that their data is safe with us stored on European servers protected by the highest security standards and independently certified. Given the strategic importance of AI -- when it comes to advancing our tech stack, we use cross-platform agent reach to track our progress. This newly introduced metric captures actual usage, reach and depth of agentic solutions across the business. A theoretical maximum of 100% means universal consistent adoption by everyone. Our goal is to reach 40% by financial year '28 '29. This ultimately means that a much larger share of our customers can be reached consistently across our digital touch points and served in a more connected way. And we have established AI governance processes that go well beyond current industry standards, built for transparency, accountability and ultimately, customer trust. For customers, this means a more seamless and consistent experience across channels. For us, it creates a stronger platform for execution and growth. So technology enables our journeys and also enhances our supply chain to live up to our delivery promise. Customers expect fast, reliable and convenient delivery options. And when we get that right, it drives conversion sales and, again, create moments of trust. Over the past 3 years since our Capital Markets Day, we have built a much stronger supply chain foundation. Today, vendors mostly supply to a national distribution center from where replenish stores and stock instantly available for online fulfillment. This helps us, on the 1 hand, to optimize our net working capital while also boosting availability. Online availability has significantly improved to 86%, and our goal is to go to beyond 95%. On the last mile, we are leveraging our omni-channel network to offer customers options which competitors often cannot match. We now offer 90 minutes express delivery in 6 countries and 30 minutes pickup from all stores sourced in all countries. Our focus areas for the next 3 years are to double down on speed, digital operations and integrated planning. In the last mile, we are planning to go even further, extending cutoff times, expanding next-day and same-day delivery and broadening access points. This also includes bulky items where there is a significant potential for an improved experience in the market. We are not only improving every step from checkout to delivery, collection and returns. -- but also communicating in a much more personalized and proactive way. In the middle mile, the focus is on using our network more intelligently and at greater scale while competitors often optimize locally on a country or channel basis, we are continuing to build a more connected European fulfillment backbone. Our inventory can be deployed more flexibly across stores, online channels and countries. And we will continue to leverage smart digital supply chain capabilities as we have already successfully started doing in our national distribution center in [ Catalin. ] And in the first mile, we are replacing fragmented planning with an end-to-end process that connects commercial demand supply planning, inventory positioning and execution across our network. We will leverage advanced capabilities such as automated replenishment and event-driven demand forecasting. The result, better asset utilization, less firefighting and higher customer satisfaction. We plan to improve our delivery NPS from 54 today to 60 in financial year '28, '29. In summary, supply chain isn't just about moving goods more efficiently. It's about making our omnichannel model stronger with better availability, faster fulfillment, greater convenience and more reliable experiences for our customers. Ultimately, -- this is also reflected in how our customers perceive our brands. So I guess, Michael, the stage is yours.

Thank you, Niclas. Let me talk about the 2 brands that play a key role in our strategy and continued success. Starting with MediaMarkt. Over the past years, we have sharpened the brand around a clear purpose refreshed its identity and made our communication more consistent across Europe. As a result, the value of our brands doubled to around EUR 2.3 billion from 2023 to 2025. And MediaMarkt entered the top 100 retail brands globally in 2025 according to Brand Finance Institute for the first time. As we have explained several times today, the brand positioning is evolving from experienced electronics to translating customer experience into moments of trust. For customers trust built in every single interaction through a clear advice, reliable service availability, delivery, installation and aftersales. This means our promises must be tangible. Customers should feel that we make technology easier, more personal, more reliable. Our ambition is clear: to become the first choice not only on price or assortment but also in customer hearts. In Germany, we also have a second brand with a strong potential Saturn. A brand most customers now nd value, but also a brand whose future role needs to be more clearly defined. So the question today is what's next for Saturn. To answer that is worth looking at that what we have achieved over the past 3 years. 4 years ago, we made a very conscious decision to bring MediaMarkt and Saturn closer together in our communication. MediaMarkt has developed very positively. Saturn has remained a highly recognized and trusted brand. And we have gained efficiency in media spend, content production and the visibility of our strategic messages. The modernization and rebranding of selected stores to MediaMarkt has also created positive momentum with rebranded store achieving a 10% sales uplift. We will continue to build on this success. At the same time, Saturn continues to offer a strong potential. The brand has 92% awareness in Germany and is closely associated with innovation. This is why we see a clear opportunity to give Saturn an even sharper and more distinctive role without our brand portfolio. Going forward, Saturn will address Tech and CS customers who are passionate about discovering new technologies and expect a curated offer and exclusive experiences. The concept is built around 3 pillars. Select means Saturn will focus on a very selected assortment of highly sought-after innovative and trendy products, certified means Saturn will give customers a strong orientation by checking and viewing products in a collaboration with an external testing institute. Drops means customer will get early access to new technology with an exclusive launch event. Saturn will be a digital-first brand, the revamped app and web channels will feature a new field, a modern user and experience and a rich content for the deep discovery of this innovative assortment. Saturn will combine a strong digital presence with selected physical experiences formats, including flagship showroom concepts within MediaMarkt stores as well as other selected locations. You can see a rendering here on the right-hand side, customers will experience a modern setting with plenty of space to explore and engage with the products. This is with this differentiation positioning Saturn can address potential additional customer groups, strengthening our innovation profile and add another distinctive growth lever to our brand portfolio, as a sub-brand under the umbrella of MediaMarkt. So this is the future of Saturn and let me now hand back to Remko to go through our business plan, Remko?

Thanks, Michael. As I said earlier, I'm a number person. So now that you have heard from all areas, I'm happy to take you through our business plan. You've heard the strategy in detail how we turn customer experience into moments of trust. Now let's see what that delivers financially. 3 years ago, at our CMD, we set clear [ platches. ] We have achieved or exceeded most of them. Our strategy has delivered and we will continue to do so. All our growth businesses fit into concrete financial targets for fiscal year '29. Let me now walk you through how we create value and what we expect to deliver over the next 3 years. The financial targets are specific. The assumptions are grounded, and the bridge from today to fiscal year '29 is clear. Let's dive in. Every part of our business will contribute to the EUR 800 million in adjusted EBIT in fiscal year '29. The model is straightforward, strengthening the core, accelerate the growth businesses and led both compound together that's where our financial strategy comes from. We are not betting on a single business area to drive growth. We are strengthening every part of our business simultaneously because every touch point with our customers create value. At the top, you can see our omnichannel core delivering strong fundamentals. Net sales of EUR 24 billion, 1.3% CAGR versus '26, an NPS at 66 across all touch points, 54% returning customers. These are the metrics that show we are building lasting customer relationships. And then all our growth areas accelerate in parallel, service and solutions will generate EUR 1.6 billion in gross profit. Our marketplace will reach EUR 1.9 billion in GMV. Private label will grow to a 7% sales share. Retail as a Service will generate EUR 90 million in gross profit, and Retail Media will contribute EUR 230 million in gross profit. Each of these areas has its own growth path. Each has its own margin profile. And together, including the expected synergies from our partnership with JD.com, they deliver EUR 800 million in adjusted EBIT. That is what diversification means to us, not just more growth but more resilience, more ways to create value, more ways for customers to engage with us and more ways for us to win. The mix shift in our gross profit tells the clearest story of our transformation. Today, in fiscal year '26, around 60% of our gross profit comes from our retail core, 40% comes from our growth areas, services solutions, marketplace, private label, retail as a service, Retail Media. By '29, we want to see a different picture here. More than half of our gross profit, 51% will come from our growth areas. Retail core will remain at 49%. The core remains essential. It will fund the platform fuel that the customer relationships and how we build our growth momentum. But growth areas for the first time will now lead to gross profit. This isn't just a shift in numbers. It proves that we are an omnichannel service platform. We are building a more resilient more diversified business model. All business areas will significantly contribute to our gross profit, which is precisely the resilience, the model is designed to deliver. Now let's look at what this means for our bottom line and our overall financial targets. Let's translate this evolution into concrete numbers. The acceleration across all business areas will drive our increase in profitability. By '28 '29, adjusted EBIT will reach EUR 800 million, up from EUR 500 million today. That 60% increase supported by operational improvements and the expected synergies coming from our partnership with JD.com. Our net sales will grow to approximately EUR 24 billion, a 4% increase compared to fiscal year '25, '26. Our ambition isn't only driven by operational performance. Cash investment will increase to approximately EUR 350 million per year reflecting our strategic ambition going forward, these high investment levels will allow us to capture new opportunities and capabilities, particularly in technology and logistics. The exact breakdown of the investments will be further refined as overall strategic road map is refined and execution is in progress. On free cash flow, we see significant improvement to more than EUR 300 million. This will primarily drive our EBIT expansion. We will generate stronger profitability growth our margin improvement and discipline on cost management. This will directly translate into better cash generation, sustainable independent by EBITDA growth rather than working capital optimization. Now how will we achieve this? We have identified 4 key levers that drive this transformation. First, gross profit improvement by focusing on the high-growth areas. Second, strict cost discipline. We will keep our OpEx ratio stable even as our sales growth; third, sales growth, slightly above the market. We won't change aggressive expansion. We will grow steadily, but profitable, which will give us margin discipline and operational leverage. And fourth, we expect JD.com to provide some support. These 4 levers working together are what we will get us to the EUR 800 million adjusted EBIT and free cash flow of more than EUR 300 million. Let us now come back to our planned partnership with JD.com. What you have seen today is a story of a company choosing its future with his eyes wide open. We have a strong strategy, and we have a strong financial foundation. We have chosen to work with a strong partner because we can not because we must. JD.com is a partner with global skill, digital infrastructure and a long-term investment horizon. We are a European company, and our partnership reflects this. Retail as governance, worker representation, regulatory discipline and cultural respect built into every single layer. We expect to have all the regulatory approvals in the second half of 2026. The delisting is then planned for the beginning of 2027. I understand that you will have detailed questions in this context. But before closing, we are subject to legal restrictions that prevents full disclosure. Though the time line is clear. The process is underway, but a time line only tells you when what matters even more is high. It comes down to value, the strategy and the customer focus that both organizations share together we can build moments of trust beyond our own capabilities. The best partnerships are built on what each side needs they are built on common understanding. And on that front, JD.com and MediaMarktSaturn are speaking the same language with keywords such as customer centricity, omnichannel conviction and a long-term investment horizon. Both companies are convinced that the physical store isn't relic. The store network is a strategic asset JD.com has a store network with more than 10,000 outlets. Both JD.com and MediaMarktSaturn have made sustained material investment in the omnichannel model. Through this partnership, MediaMarktSaturn will gain access to JD.com's industry-leading technology, its omnichannel retail architecture and its logistics infrastructure. For us, -- this is a leap forward years of technology development compassed into 1 partnership. This is acceleration. Let me be unambiguous on this point. MediaMarktSaturn will maintain its own strictly independent IT system and technology stack. We are being integrated into JD.com's infrastructure. Furthermore, JD.com has committed to building a separate fully independent European technology stack, our data, our systems and our customer architecture remains sovereign. Both companies have a track of building deep durable relationship with suppliers and partners. We build partnership on mutual investment and long-term commitments. What we are building with JD.com is exactly what we are building with our own customers, a relationship based on trust, transparency and shared ambition. Let me show you the governance framework. We have built around this partnership strategy without a structure, it's just an intention. The governance framework is built around 4 pillars. First, -- we are the Board. We will continue to be in charge. Driving our strategy we have just introduced today. And all operations is also in hands. JD.com has also pledged that it doesn't plan any material changes to the structure organization or our brands over the next few years. Even after delisting MediaMarktSaturn, we continue to operate as a separate German legal entity, subject to full rigor of German corporate law. Our Supervisory Board will maintain equal representatives of shareholders and employees. Co-determination isn't a courtesy, we extend to our workforce. It's a legal obligation and the competitive strength joint implementation committee with operational leaders from both sides will align priorities, develop implementation plans and turn strategy into action, related party transaction governance, services or commercial viable. All commercial interactions between MediaMarktSaturn and JD.com above a certain threshold must be reviewed and adopted by a separate committee in accordance with the arm's length principle. Culture is treated seriously as a compliance. Cross culture awareness training is already underway access both organizations to prevent misalignment, expectation or even communication. We are investing in the human infrastructure. Of this partnership now so that cultural alignment is built from the start. The governance framework on this side isn't minimally required by law. In several areas, it goes beyond it. For example, with regards to the involvement of our Supervisory Board. And this choice is deliberate. It tells you something fundamental about the posture of both organizations. They are building for the long term not managing for the short term. JD.com brings world-class technology, logistics capability and a proven track record of building lasting partnerships. MediaMarktSaturn brings and brand presence, deep customer trust in 40 years of retail experience across 11 European markets. Together, we are compounding strengths. Now let me summarize the last 90 minutes. There are 5 points I want you to take home. First, we are solving a paradox infinite choice, infinite options. That's what our customers navigate. They choose shop with us because they trust us. Trust isn't a slogan. That we print on a wall. It's a reason they walk through our doors. It's a competitive advantage at neither a price, nor an algorithm can replicate. Second, we invest in creating these moments of cross about our 4 experience fields. And they work as 1 integrated system. Empowered employees, we give trusted advice a shopping experience where relevance replaces volume, the users experience that extends far beyond the checkout at an impact experience that holds our ecosystem to the same standards we hold ourselves. Every moment of customer experience creates a moment of trust. Third, we build trust through resilience by '28 '29, over 50% of our gross profit will come from our growth businesses, more than doubling their share over 6 years. we are not dependent on a single revenue source anymore. When our businesses faces headwinds, the other carry the load, that gives us structural strength. Fourth, our focus on trust base of financially EUR 800 million in adjusted EBIT in 3 years. That's not an aspiration. It's the financial translation of our strategy. Fifth, we are ready for our partnership with JD.com. We have done the preparation strategically, operationally, culturally and legally. From day 1 of our partnership, we can move what we have shown today a strategy that delivers in a platform position to deliver even more. We have successfully translated our strategic partnership in economical success. And I have trust that having seen our plan, there are now fewer skeptical faces in the room than 3 years ago. We will now track delivery against our updated key pledges. This is the same accountability framework that has helped us to our commitments over the last 3 years. I'm extremely proud today but of course, I can understand that there will be some questions. But before we go to the questions, let me invite you back to the stage, Fabienne.

Thank you, Remko. I would now like to invite all presenters and ExCo members to join me on stage for the Q&A sessions. We are happy to answer your questions for the audience here in Hamburg, please was your hands, and my colleague will come to you with a microphone. For those joining us through the conference call, [Operator Instructions]. You can also submit your question in the text box below the chart. Full house. So we've got the first question already from Thomas [indiscernible] from [indiscernible] Will MediaMarktSaturn continue to operate its large-scale retail format, covering more than 4,000 square meters in the long term. I will give this question to Marcus Tengler.

Thank you, Fabienne. Well, I would not like to answer that on the size level. I would rather go for the perspective of our formats. As you -- many of you most probably know, we have changed from a one-size-fits-all strategy to a for format strategy with that was Smart Express core and Lighthouse stores. And the real driver behind this is not the size, it's more the customer demand. So we are positioning our stores in the right size in the catchment area where the customer demand actually asks for the specific format. Mid to long term, we are focusing on that for for-format strategy and that, of course, then has an impact on the average size of the stores. In the last couple of years, we have reduced our store size in average. And now we had 2,200 square meters approximately -- but as I said before, I would rather go for the formats. And there, we already have 10% of our total portfolio in the new formats, and that will continue to grow.

Thank you, Marcus. I'm looking at the room. It's quite dark. But is there any question from the room? So let me -- you have got a question here from Alex from mwb Research.