Fnac Darty SA (FNAC) Earnings Call Transcript & Summary

Good evening to you all. Thank you for your virtual presence tonight and for listening to us. Today is a very special day for our group. We are going to share with you for the first time, within a few minutes, our new strategic plan, the outcome of the collective work carried out these last few months. The extreme mobilization of our teams to cope with the crisis in 2020 did not prevent us to step backwards and to work very seriously in order to make a projection onto the future and build up the future of the group. Over 3 years, after the launch of Confiance +, rolled out with strength and determination by our teams, and the circumstances which were often exceptional with the occurrence of economic, social crisis and in the end, a global health crisis, the results of 2020 demonstrate the quality of education -- execution we are capable of. I'm especially proud of what we've been doing collectively for this last year of deployment of Confiance +, and this gives me a lot of strength to unveil to you our new plan today. But before that, Jean-Brieuc is going to show you the detailed financial statements for 2020. I had the opportunity to tell you on the 19th of January that those results show the results of the company and the relevance of its model, including -- given the unprecedented circumstances. The capacity of our teams to adapt and to keep promises made to our customers make me very confident in our future. And of course, we'll take time at the end to answer your questions after the presentation within the time given to us. If we haven't got time to take some questions, please do not hesitate to contact the Investor Relations team. You have the opportunity to ask your questions through the platform. Jean-Brieuc, I'm handing over to you.

Thank you, Enrique. Good evening to you all. Let's come back to 2020, especially the sequences of the fourth quarter, a decisive period for the company. After first lockdown from the 15th of March to the 10th of May, a second lockdown was set up from the 29th of October to the 28th of November, less restrictive than the first lockdown because it was possible to have Click & Collect for all products. This mitigated the impact of the closure of shelves regarded as nonessentials in stores. The second lockdown impacted ourselves in November, but the strong momentum during December, Black Friday and Christmas enabled us to show solid growth, plus 9.6% on a like-for-like basis over the fourth quarter. The strong growth of online sales, plus 70%, and the traction of consumers for the withdrawal and Click & Collect backed this robust performance. Let's look at the achievements last year. 2020 had many challenges because of the COVID crisis. It was a real stress test real time for the business model of the group. Further to the closure of the store networks partially or totally during the lockdown period, Fnac Darty had to face the disruptions to the logistics and digital capacities. However, we have solid fundamentals and extremely robust industrial platforms so it was possible to continue business and to meet the urgent needs of consumers. The company also set very rapidly a proactive and targeted policy to manage the inventory in order to protect the cash flow of the group while meeting the strong demand of products due to home -- working from home and the equipments of home. The delivery capacities were under pressure. The group could rely upon the partnership-based ecosystem and the internal delivery capacities during the first lockdown. So the strength of the omnichannel model with the possibility offered to the consumers to withdraw their products via Click & Collect in stores enabled to relieve delivery capacities of the group during the second lockdown. Fnac Darty accompanied the reopening of its stores post COVID with the installation of highest safety standards for employees and customers. We pursued our diversification strategy and investment strategy on bouyant markets, and we continued deploying our unique Darty Max service offering with over 200 -- or almost 200,000 members end of December, 1 year after its launch. We will come back to this rollout within the framework of our strategic plan. We also pursued the diversification of our product offer with the acceleration of our initiatives on the urban mobility market via the striking of key partnerships to create a complete ecosystem of products and services on these buoyant segment. Furthermore, we continued to innovate in launching new initiatives revolving around the educated choice and responsible consumption. Finally, we can be proud of the successful and quick divestment of BCC, our Dutch subsidiary, to Mirage Retail Group. Let's move on to the analysis of financial statements in 2020. Let's look at the top line of the income statement. You have already heard of it on the 19th of January. Because of the unprecedented crisis -- in spite of this crisis, the company generated revenues of EUR 7,491 million, plus 0.6%. Online sales increased plus 10 points over year, and over 5 million new customers -- Internet active customers were welcomed. The gross margin rate, 29.2% in 2020, down by 120 basis points versus 2019. The reasons for this drop had been detailed during the publication of the -- in January. This comes from unfavorable product mix effect, 80 basis points; very strong decline in the ticketing sales because of the governmental measures, down 65 basis points; and then the integration of Nature & Découvertes. The operating cost totaled EUR 1.971 billion, on the increase versus 2019 because of more deliveries at home. I would like to outline the good control of our operating costs expressed as a percentage of revenues, down 10 basis points versus last year in spite of a negative scope effect of EUR 63 million due to the integration of Nature & Découvertes in August 2019. The current operating income amounts to EUR 215 million in 2020. After first -- a very much disrupted half year because of the closures of stores during the first lockdown, which cost over EUR 100 million of current operating results, the company maintained a stable operating margin during the second half year versus the second half year of 2019 in spite of the closure of shelves regarded as nonessential. So this performance shows the capacity of the company to operate and protect its profitability in a degraded context where Click & Collect, however, remains possible. Let's look region after region. High discrepancy between the regions of North Europe and the South. In France and Switzerland, strong momentum of sales over year, plus 1.9%. The operating performance is penalized by a downgraded gross margin due the strong decline of ticketing sales and the unfavorable effect of the integration of Nature & Découvertes. Belgium, Luxembourg, strong growth of revenues, plus 1.2% (sic) [ 1.4% ] on a like-for-like basis and growing operating performance versus last year in spite of fierce competition. However, sales of Portugal and Spain are down by 11.1% on a like-for-like basis in spite of strong momentum of online sales. The operating achievement is penalized as well because of a less buoyant macroeconomic environment and stricter traffic restrictions in stores, especially in large cities where Fnac is present. Let's analyze the bottom of these income statements. The net income from continuing activities, group share, EUR 96 million, minus EUR 19 million versus last year. This slight decline results from a decrease of noncurrent items, the tax charge and financial expenses. The financial results totals EUR 51 million, including the cost of the guarantee and the setting up of a loan guaranteed by the state for EUR 2.6 million and an impact of IFRS 16 of EUR 22 million. Excluding those exceptional items, the financial expenses are down. Let's move on to the free cash flow. The operating free cash flow excluding IFRS 16 totals EUR 192 million, growing by EUR 19 million versus last year. This performance reflects the very good management of working capital requirements throughout the crisis. The group benefited from positive effects linked to the agile management of stocks and the controlled procurement policy leading to a vision linked to the crisis. We finished the year 2020 with a lower level of stocks than last year, given the very strong momentum Q4. In '21, we'll have to replenish stock, which may impact the level of operating free cash flow. This depends on the level of sales for the fourth quarter of 2021. Regarding the operating investments in 2020, down by (sic) [ down to ] EUR 99 million, in line with what was announced by the group. A few words to finish on our financial structure. The financial situation of the company is healthy with shareholders' equity of over EUR 1.3 billion and a net cash flow situation excluding IFRS 16 of plus EUR 114 million end of December 2020. Cash flow has -- remains one of the priorities of Fnac Darty. We set readjustment measures of costs in order to protect liquidity, and this is right from the beginning of the crisis. The liquidity is robust end of December, of plus -- over EUR 1.9 billion, including the state loan of EUR 500 million and a revolving credit line of EUR 400 million still undrawn. The group obtained the commitment from the lenders to accept the suspension of financial covenants for June and December. However, those covenants were observed for those 2 maturities. I'm going to hand over to Enrique who's going to say a few words on the outlook of the company.

Thank you very much. I would like, just before we talk about the group's situation at the beginning of the year, to come back on the highlights concerning our extra financial performance. Fnac Darty was able to integrate climate change in its business model. Our group has taken this turning point and integrated sustainability in its priorities as from 2018, with many innovations, customers' information service, but also defining an objective of minus 50% of CO2 emissions by 2030. 2 years later, we are on the right track, thanks to a road map on the optimization of transport and increasing use of renewable energies for our electricity consumption. To strength -- we are equally strengthening our collection of waste -- electronic waste, and we reuse and recycle waste on site. Even in 2020 with strong lockdown, we have collected the same amount of waste in continuity with our activities. Now as far as professional equality, the company is committed to improve gender equality and representation of women within management teams, in line with the leadership group objectives at ComEx level but also in the stores. Employment for the young is also a priority, and we like to illustrate with a figure of more than 1,000 apprentices trained within our group each year. We have also this year increased substantially donations with online donations and in stores through our ticket sales by basing ourselves on our partnerships with [ Arya Institut ] and Common Sense. At the end of the year, we wanted to make a strong commitment in the fight against violence against women by supporting the association [ Ducoute Le Fam ]. We also want to be exemplary when it comes to business ethics. And we -- this year, we have launched a special [ whistling ] system, and we have Nature & Découvertes registered [ vigilance plants ]. Now you can see the CSR strategy of the group is complete and integrated within our business model. And this is driven at the level of ComEx, executive committee. And all management committee and all the managers have CSR objectives in their variable remuneration. In 2020, we strengthened our ambitions for all the CSR pillars and really rooted our objectives in the everyday actions of our groups. 2021 will therefore be a new year of progress in this domain. This level of requirements and demand is being set. The evaluation of ESG by Vigeo Eiris has been progressing over the last 3 years and has positioned Fnac Darty amongst players in distribution that are most responsible. Now whereas the average in the sector is 32 points over 100, Fnac Darty has obtained a rating of 48, constantly progressive and is aiming for a rating of 50 for 2021. All the other rating agencies on ESG have increased the rating of Fnac Darty with its raison d'être and its new strategic plan. Fnac Darty has the ambition of positioning itself as the leader in sustainable consumption in its sector, and we are going to come back to this in a moment. Now let's look at a few highlights, as I've promised. As you know, the authorities in different countries where we are present have taken measures to control the pandemic that continue to impact the conditions of economic activity, especially in retail. In France, we're applying, since the beginning of the year, a curfew as from 6:00 p.m. for the whole of the country, and we have had the closure of shopping malls of more than 20,000 square meters. That has led to the closing of more than 60 Fnac Darty stores. In Switzerland, stores have been closed since mid-January, with opening up in March. Now in Spain, there's been strong restrictions of traffic and constraints as to opening hours and had a significant impact on our business activity. This confirms our estimations for return to normal which will be slower in Southern Europe. In spite of all this and thanks to the online sales and good performance of the open stores, we have at the beginning of the year a very dynamic growth which is equivalent to the fourth quarter. Now we have noted strong demand in our main segments, especially in technologies and household appliances. In spite of persistent impact of the standard reprices, we've noted good resilience at the beginning of the year, and this will confirm our prospects for 2021 and the guidance that we communicated in 19th January for a slight growth in sales and operating income during 2020 -- compared to 2020. One of the elements that have been highlighted in 2020 is capacity to generate significant free cash flow and strengthening our liquidity position. In such context, we're proceeding the integral reimbursement of the guarantee loan, at the latest, in April 2021. This government-guaranteed loan obtained during the first lockdown enabled undoubtedly to strengthen confidence in the group and has enabled us to pay all obligations and to support our ecosystem to be able to weather this exceptional period. The guaranteed loan -- government-guaranteed loan has fulfilled -- enabled us to fulfill our objectives. And I'd like to thank the public authorities for their support during this period. To conclude, we've decided with the Board to reactivate as from this year the policy of return -- dividend payout to shareholders that had been suspended at the beginning of the crisis. As a consequence, we are proposing for the next AGM to pay an ordinary dividend of EUR 1 per share, representing a payout rate of roughly 30% of our results of 2020. This dividend will be paid totally in cash. We want this dividend to show to our investors the trust and confidence we have in the solidity of the group, its capacity of being able to generate value in the long term whilst adopting the best standards and commitment towards its clients, its employees and society. So this concludes the presentation of our annual results 2020. Now we'll move on to the presentation of our new strategic plan, and I am extremely proud to present to you our new plan for 2025. And Jean-Brieuc will share with us the challenges and the financial objectives associated with this strategic plan. Before sharing vision of the group, I'd like to come back on the successes of the previous strategic plan, Confiance +. The results of 2020 have clearly shown that our model is effective, our brands are iconic and our digital capacity is robust. We have acquired 5 million new web clients during the year and received roughly 44 million visitors on our sites. These fundamentals which are solid and proven are going to be used for us to build our future. I propose that I go over them very briefly. First of all, the success of the group is based on the strength of our brands, where you know that they're very complementary: the dare, the curiosity for Fnac; the care and serenity for Darty. These brands are extremely strong and generate value because of their footprint and also the fact they're part of every day lives of our customers. Fnac is the second brand the French missed most during first lockdown. We count 30 million active customers, of which 10 million are already members of our customer loyalty programs. Through the possibilities they offer in terms of generation value, namely through the mix of the different brands that we promote every day, the group Fnac Darty has also all the other brands that strengthen our ecosystem, Nature & Découvertes, Vanden Borre in Belgium, WeFix, PC Clinic in Portugal, France Billet and BilletReduc. So we reproduce in the different countries where we're present the strategy that we are conducting in France, and we adapt to the local special aspects, of course. In the markets where we are present, we have a leading position or we are referenced. We deploy the power of the group to accompany these countries, particularly when it comes to digital strategies. Our omnichannel model enables us to record more than 1 billion annual visits on our website. With the physical bricks-and-mortar network of more than 900 franchised and owned stores, our product mix is dynamic with a remarkable balance between frequency and value. Our categories align frequency and value and different purchases, with categories like books having strong frequencies, gaming also with a strong degree of attachment and household appliances with strong value. All of these products are very complementary in our customer approach. Our product mix is also very strong. 3/4 of our mix are based on resilient categories and structurally in growth, like large white goods, TV and IT. Second category is really the heart of our customers' consumer habits, especially dynamic in the current context: household equipment for teleworking, kitchen appliances and also books and cultural products. We have a dynamic mix. Fnac Darty has proven capacity to develop and evolve its mix to be less exposed to markets which are structurally declining. Photography, video, audio only represent 1/10 of our mix currently. These markets have really been at the heart of the DNA of Fnac. A number of our clients are very much attached to these products. We are managing this decline by increasing progressively the new categories that generate growth as urban mobility and the Nature & Découvertes products. And core of this market is our leadership in the premium segments with strong added value and with strong margins. More than 1 IT product out of 2 is bought at Fnac Darty. This is the result of historical partnerships with our suppliers to be able to offer exclusive packages and to really promote our brand. These results validate our strategy of value offer, which I will come back to later on. These successes really make us proud. And we owe this to 3 very strong aspects of our model: first, our powerful omnichannel model; two, our incomparable offer of services; and three, our innovation DNA. Let's talk about our omnichannel model, which we've been building for several years now. There is no -- nothing like it in France and very few similar in the world. It has shown its strength and robustness especially during the crisis. This market is based on a historical or incumbent network, which is very productive, of many stores. They are the cornerstone of our proximity relation with our customers. To develop this customer closeness, we have spread -- developed our network, going from 664 stores in 2016 to 908 stores in 2020, namely via the franchise model. I would take this opportunity to insist that the development of the franchise is a success and enabled us to develop quickly with low CapEx with a great deal of development presence, associating professionals in the sectors that are very close to the customers. For the customers, we are for the best customer experience in store with an NPS score which is growing strongly and continues to grow year-on-year. The Net Promoter Score is a standard benchmark to measure customer satisfaction. It is calculating the intention to recommend the brand to other clients. Since 2012, NPS at Fnac and Darty has more than doubled over the period, going from 20, 25 to 50, 60, even 60 points. Now this progression is reflection of the total commitment of our teams in this area. We are following this indicator with our teams week-on-week, and we have even part of variable remuneration based on this. For Fnac Darty, we have a network that is very healthy with roughly 95 owned stores that are profitable in 2019 and very productive with sales per square meter amongst the best in the market. The strength of the network is considerably amplified with our footprint on the web. We are the second e-commerce player in France, the first omnichannel with roughly 44 million visitors per month in 2020. The web offers a value proposition which is different and complementary to that of the bricks-and-mortar stores. We have a very high level of quality, especially with the delivery, with the highest NPS amongst the group. My conviction is that this emulation between on- and offline is going to be a winner for clients and retailers. For the customers, it's access for all of the products all the time everywhere. For the retailers, it's the benefit from a profitable internet, web presence. More than 50% of our web sales are in Click & Collect in -- were Click & Collect in 2019. The COVID crisis really revealed the strong points and the weak points of companies. Fnac Darty has gained market share on the web of 4 points compared to 2019 during lockdown with very good performance compared to the pure players. And I would like to give you a figure that is very eloquent that was officialized last week. For the fourth quarter 2020 and for the first time, we recorded more single visitors on fnac.com and darty.com combined than Amazon in France. This is from [ Fnac ] survey. So the group has a very strong digital credibility and has all the assets to succeed in the long term. Second focus which cannot be bypassed, the strength of our unique model of services. Services are key and fits into the ecosystem of Fnac Darty completely. Sources of growth over the revenues and the margin, very differentiating, a key component for commitment and customer satisfaction. This service ecosystem is unique and is to be found throughout the sales process. It's unique because it's been historic and anchored into our DNA since the contrat de confiance in 1968; unique because it is a part of a complete experience, advice, purchase, delivery, installation, protection and repair. And it is unique as well because our services lead our customers to make choices to invest into equipment of quality, high value and lasting over time. Those services allow us to go much further than the mere distribution of products and offering our customers a [ seamless ] experience based on advice and systems. And it enables them in full confidence to profit from their cultural and technological goods. Those assets are the outcome of the history of our brands, Fnac and Darty; of the common spirit of pioneers. From the contrat de confiance right up to the launch of Darty Max and via the creation of [ Reduc ] the history of our brand is really full of innovations and service of our customers. We built a common project -- a converging project for our 2 trade names based on the same ambition: to defend the interest of our customers and to strengthen the omnichannel model. This crisis has accelerated trends more than they -- it created them. Those trends were already well identified by Fnac Darty: boom of e-commerce, environmental conscience being on the increase, quest for well-being and human contact among others. This massive acceleration validated the orientations which we followed those last few years within our previous plan, Confiance +. This is the case of the development of the marketplace supporting the web growth; our loyalty program, over 10 million members; or our historic investment in efficient logistic assets. In 2020, very demanding year, we succeeded the short-term policy, but we also worked together to write the next story of -- the next page of our history, the next strategic plan. With all those firm beliefs and we have an ambitious mission, we want to build up the future and reinvent the way we want to serve our customers. Society has changed in depth and in a sustainable way. For years, the demand of consumers was to have access to products and services. From now on, their demand go much beyond this. New criteria are to be found behind their consumption behaviors. They would like to make the right choice. They have a deep concern for environment, and they want to favor use over ownership. Our future is based on 3 firm beliefs on the future of retail. Omnichannel is the winning model of retail, meeting the complex expectations of consumers at best. The procurement, the purchasing act cannot be dissociated from advice and service. And to finish, the consumer behaviors will be in the future led by their environmental conscience. Those 3 beliefs and our mission for the group are intertwining: to commit ourselves to educated choice and durable consumption. This mission -- with this mission, we are at the core of the societal trends: the growing digitization of consumption, the era of hyper choice, the importance of human contact on a daily basis and the necessity to have consumption more aligned with the societal and environmental challenges. You'll see the new strategic plan highlights our mission and embodies this mission. I suggest we share a few figures in order to illustrate those beliefs. While the omnichannel is the winning model of retail today and tomorrow, the boom of e-commerce is a trend -- basic trend which is sustained, [ nimble ] and which is a structuring one. It cannot be bypassed or reversed. But the consumers would like to have advice and would like to touch products. 8 out of 10 would rather buy from store. So it's normal that during the first -- after the first lockdown, sorry, the omnichannel retailers overperformed the pure players to a large extent. Second belief, today, more than ever, customers need to be guided and accompanied to make the right choice. There are too many choices. There are hundreds of millions of references accessible. And therefore, the consumption modes over the last 10 years have changed. Our belief is that this era is over because with hyper choice, you also have hyper doubts. How can you be sure as a consumer to make the right choice? And nowadays, more than ever, consumers need to be helped in order to make the right choice. They would like to have an expert and independent advice to help him make a choice and to use the product at best, and it is especially true of our technological markets. Third and last belief, the prevailing place which is the environmental conscience in the consumer behaviors. Over 3 consumers out of 4 say they favor stores with a sustainable policy. We are convinced that this durable and responsible consumption will be at the core of our customer concerns. To meet the expectations of consumers and to make our beliefs concrete, it's a great pleasure for me to launch our new strategic plan. This new strategic plan, we decided to call it Everyday, Everyday at the service of our customers, Everyday for an educated choice and durable consumption, Everyday companion of our clients. In this new world, Fnac Darty has a very clear ambition. Our ambition is to be, on a daily basis and over time, the companion of the consumer to accompany him or her in durable consumption and in the daily uses of the household to help consumers make the right choices and educated and responsible choice to benefit from the technology and culture at best while preserving the planet. To be a companion of our clients means to help customers on the daily basis, being a life partner, giving them advice at each state. This ambition is guiding our new strategic plan Everyday, a plan changing the [ planet ] completely, occupied by advice, sustainability and service at the heart of the daily life of our customers while spinning up deployment of our omnichannel model. How are we going to succeed with Everyday? By 2025, we are aiming at 3 objectives: first, embodying the new standards of strongly -- highly digitized omnichannel retail; number two, accompanying consumers in adopting durable behaviors; and becoming the leader of assistance services for the household based on a subscription model. Let's start with digitized omnichannel retail. Our ambition is to define together the new retail standards and omnichannel retail, be it digitized and human, the winning retailer of the future. To achieve this ambition, we have to act on the key components of the omnichannel model, strengthen our digital capacities, optimize our network of physical stores and enrich the value of our offer. This ambition is translated by objectives -- concrete objectives like 20% -- 25%-plus, 30% of our revenues on the web; 1 web order out of 2 withdrawn with Click & Collect in our points of sales; and 100% of our owned stores being profitable. How are we going to proceed? Let's look at the development of our online capacities. We already have a very powerful web asset. Our website has 44 million unique visitors each month and a business volume of EUR 2.7 billion. Our logistic asset, in the crisis of COVID, demonstrated the relevance of our past investments. We succeeded in increasing by over 50% the number of parcels sent in 2020 versus last year while keeping a very competitive service quality. With Everyday, we will strengthen the performance of websites. And we will develop the store spirit on the web in highlighting our 12,000 salespeople. In order to do so, we're going to invest in the development of our digital capacities, allocating over 50% of our CapEx into the digital technology. We're going to work on 3 main dimensions: best-in-class browsing experience on the market, the specific signature of Fnac Darty via expert advice and strengthen logistic capacities in order to back up the growth projected for the web. The best-in-class experience on our sites, this is user -- a new user experience design, more mobile, more seamless, efficient, inspiring, more customized with an immediate brand awareness. A short video clip to illustrate this revamping on the first half year of 2021 on the website, fnac.com. [Presentation]

New algorithm of artificial intelligence will allow to improve the performance of search engines and better customize referrals. This will take place in 2021. We offer fundamental change to have the store experience but on the web as well, and it would be revolving around advice and expertise. How are we going to do this? In capitalizing on one of our most powerful assets, our 12,000 salespeople. We would like to spotlight on the website fnacdarty.com. They will become sellers/influencers via the massive development of online advice and product content by these influencers. This could occur via chats and video conference with salespeople. And the first test already show a real enthusiasm for this initiative with an NPS above 70, above -- much higher than the NPS of all our activities. We are creating new ways of interacting with our customers on the web: more interactive exchanges via the development of live streams, which is already very much liked by the public; and more targeted exchanges with customer communities, which are already powerful, like the community of culture and repair, regrouping over 600,000 active users every month. Click and mortar in one unit even if the digital sites and the stores have their own specificities and assets. We have to back this very strong growth ambition of the digital activity in a durable and efficient way. Of course, we need to invest in the performance of sites but also in the logistic assets. We should not forget that. We will dedicate about EUR 40 million for the modernization of our supply chain platform. One challenge is to be able to absorb the increase in volumes while mastering cost and offering high service quality. We've reduced the unit cost by over 20% while improving our service quality especially for our stores, at the heart of our model. Let me recall that by 2025, we will achieve 30% of our revenues on the web, and our logistic firepower is a key for our success. The second I mentioned is the optimization of our store network. Our store network is efficient. The network has almost 900 stores end of 2019. About 95% of our owned stores are profitable. The levels of margin per square meter generated by the stores are among the highest in market. Our franchise network is well integrated into our model. The proof is that we have very attractive stores generating traffic for us but also for our partners, lessors. We welcome in our stores over 250 million visits each year. Our stores meet the expectations of our customers in terms of experience, assessed very positively by our customers. We gained about 20 points of NPS in each network. We've been doing so since 2015. And the concepts are very much looked at with a multi-format network, a proximity network with a controlled size and very well sized. So we want to continue this. I have a belief, the power, the strength of our model is in the click and mortar. Stores and digital, they are 1 unit. They are helping each other. The store contributes to strengthening our proximity with the customer. And the store will value our expert advice, human dimension, and this is a difference with pure players. And there's an immediate availability of our omnichannel services, and of course, it contributes to the web profitability. And it's possible to develop the web revenues in the area. It's possible to sell accessories and services when they withdraw goods from a store. In 2019, almost 50% of our web sales gave rise to Click & Collect withdrawal. And in enabling to reduce the logistics cost of the last mile, so the store completes the web and vice versa. Both channels create a unique experience. So I repeat, we believe in our stores. That is why we continue to accompany the development of our [ product ] by optimizing its profitability, with a strong ambition, attaining 100% of our owned stores profitable in 2025. We're going to do this by using a complete toolbox, namely to act on a number of issues for each store in a flexible and adaptive manner, real estate negotiations, transferring to more profitable areas, reallocation, reduction of services -- service areas and developing, at the same time, in agile mode, new formats, for example, kitchens and small format. And then we're going to have a franchise model that will be developed further. Our stores are a showcase of innovation with technological products that really delight our customers day to day. Our role at Fnac Darty is to advise our customers as best as possible for their uses and for their needs. And we have to defend the consumer, help the consumer make the right choice in an educated and independent manner. And we ought to succeed. We're developing expertise and the passion of our sales staff. They're going to be better equipped, better trained and better informed. We're going to namely deploy a micro learning platform which will be individualized, based on artificial intelligence. And this would then [ help ] us to reinforce this -- the quality of customer experience in the store so that customers return frequently to stores. To do this, we're going to have 2 major changes. We're going to have the role of the welcomer, who's going to welcome and guide customers at the entrance of the store. To enable each salesperson to solve customer requirements through an omnichannel rationale, so coming for the products, return of products, repairs and special searches, our third access to have a value proposition through our different powerful channels. It's part of the DNA of our brands to provide the best technology in -- and culture in a value proposition. Fnac Darty, first top of mind brand on the market. Our ambition for tomorrow is to assert our positioning by accelerating in 3 directions: by conquering segments where we're already legitimate; by exploring new areas of diversification; and making sure that our value offer will be accessible through a policy of prices and promotions adapted and through competitive financing packages. We're going to have growth relays such as the major household appliances. This market is at the heart of the Darty model today and will continue to be, with a leading position. This historical expertise of our sales staff with store coverage, with a service for deliveries and installations, we have more than 80% coverage of the territories. We have many services that we provide, and it's really at the heart of households, making it possible to be very close to the customer. It's a market that generates margins and with sustainable growth through volume but also through value proposition. To gain market share, there are several initiatives that are new and strong initiatives, so the service model that we are going to re-present later on and new players in white goods and franchise, development of synergies with kitchens and targeting key moments in the lives of our customers, for example, when they move. And the mix of the Fnac Darty clients that have cross-selling and our logic of market conquest has started with historical gain of more than 1 point in market share in 2020, and this is just the beginning. The group has always known how to diversify to be able to benefit in an agile manner from different growth areas and to renew itself. It was an example of kitchen products historically for Fnac, also telephone products. This logic, we are continuing to develop with a new interesting segment, that of urban mobility. It is a market with very strong growth that is driven by environmental awareness that is increasing amongst consumers. It's an innovation market with disruptive offers; for example, the new red scooters. It's an omnichannel market where expert advice is really instrumental for discovering products. It's a service market that's needed for the good use of the products, for financing, installation and repairs even. It is a market that's really committed to support an environment and more sustainable behavior. So it's a perfectly relevant and legitimate market for Fnac Darty. In a few months, we've been able to develop complete offer, and we have taken a leader position in this segment. And we want to go much further now. With Everyday, our ambition is to define the new standards in retail with more digital retail and more human retail. We have worked a great deal in recent years to digitalize the in-store experience by equipping the sales staff with digital tools, making 100% of the digital offer accessible to these sales staff in stores by proposing omnichannel services. With Everyday, we want to go to the whole way with this virtuous model and to transform the strength of the store spirit on the web. And to do this, the role of the sales staff/influencer to accompany this online strategy, we have been next to our customers every day, in stores and on the web, to enlighten them in their choice with our 12,000 sales staff. The new standards in retail also means a more digital omnichannel experience. More digital, that means more social by developing our presence on social media. We have more than 3.5 million followers for the group. There's more of a community spirit around books, but also repair that I mentioned earlier on, more interactive, namely with the development of live streams with influencers, more customized with the use of user case data for experience that's more and more adapted to customer needs. The issue is to be able to adapt very quickly to new consumer trends, new digital trends. And to illustrate the capacity to adapt to these new trends, we have already done more than 40 live streams for the second half of 2020. And this is the way we're going to define the new retail standards in omnichannel that are digital and human. Now let's move on to our second major ambition in Everyday. It's to accompany the consumers in adopting sustainable behaviors. We've seen that Fnac Darty plays a major role in the lives of our consumers. But Fnac Darty is also a committed group, committed because we're aware of the issues that are important for the planet and the people on the planet. Our products and services are essential for the lives of people and contribute to facilitating their lives and challenging their lives, and we believe that this must not be done to the detriment of the environment. And it also is something that our customers require. And that is why Fnac Darty is going to conduct transition towards a more sustainable form of consumption. In the world of retail, this is unprecedented. It is very differentiating approach, upon which we're already very much present and have invested a lot. Tomorrow, we are going to go even further by mobilizing all our assets to accompany our customers in choices and uses of products that are more responsible. How are we going to carry out this revolution? Well, there are 2 approaches with clear objectives that go along with them. To propose to our customers a more sustainable offer and to really direct their choices towards these products, we're going to measure this evolution via our sustainability score. And we aim to attain a score of sustainability of 105 -- 135 by 2025 versus 95 that was achieved in 2018. To foster sustainable uses of products and namely by rendering more accessible repair of products, we aim to repair 2.5 million products, an unprecedented increase of more than 50 -- plus 50% in volume compared to what we are doing today. To do this, we are going to rely on our unique know-how in the area of repair with our 2,500 technicians. Now concerning the sustainability score of Fnac Darty, we have collected data concerning the repairable products for years. Now we've decided to use this data to serve our customers, to render their choices more enlightened and more sustainable. This data are going to feed into the sustainability score, are going to rate products in terms of their reliability and their reparability. This is a unique independent indicator created by Fnac Darty which weighs the volumes sold on the year of the score and the sustainability of each product. This score goes beyond all the regulatory obligations. By 2025, we aim to have a sustainability score of 135 versus 95 in 2018. So we will be able to help clients become citizen consumers and benefit from best of technology and culture to improve the quality of life and their living environment whilst behaving in a more sustainable manner. Today, we have already started this transition towards a more sustainable consumption with the selection of the most sustainable products in the category according to the score of sustainability and per price category. Thanks to the strong commitment in this area, several manufacturers such as Electrolux, to mention just one, have become aware of the relevance in the short and long -- medium and long term of the importance of the sustainability of products and to make available spare parts. It's a paradigm change that we have launched. And we share in a transparent open manner our after-sales service so as to commit our industry along with us in this endeavor. Now to attain a sustainability score of 135, we need to work on 2 levers. The first is to develop our -- first of that will be more sustainable in itself. And afterwards, to orient the customers to choose the sustainable products. The evolution of our more sustainable offer will completely depend on a strong commitment of our suppliers in this approach and strong requirements when it comes to our partners, including the marketplace vendors. And very concretely, this means that we will be able to take away certain suppliers from our references that do not conform or comply with our sustainability criteria. The development of our second life activity and the recovery of used products as a part of this. And in the circular economy, the second life will enable to not have to stock or throw away old products and by proposing alternative products with quality and service that is characteristic of our brands. To direct our customers' choice towards sustainable products, this approach needs to be visible. So we're going to rely on our sustainability score. Going to -- equivalent of the Nutri-Score Yuka UCA transposed to electronic appliances and household appliances. This score will be made very visible in our stores and on our site. It will be also -- cover all of the products in offer. So for the time being, we have household appliances, electrical appliances, but will also cover the problems of products and the amount of materials recycled on top of criteria of reliability and repairability. We are also going to include in references, the visibility of our second life offer that I talked about on our sites and in stalls via corners and dedicated parts of the stores. And this is a massive movement that we're starting by capitalizing on our leader position with our customers by strengthening our linked ties of transparency and confidence about consuming good products and being sustainable, with an industry that is going to be committed along with us to improve the sustainability of all the products of the sector. To achieve this ambition, we are also putting forward or using the strength of our brands, I'm going to share a few illustrations of this promotion. So we have promotions for sustainable products, development of communities around repair. New services develop repair behavior with WeFix the sale of spare parts and Darty Max. I'd like to share with you a film that illustrates our total engagement for sustainability and visibility of the sustainability that we want to promote with the consumers. [Presentation]

Yes. It's great -- great film. So the initiatives I've been talking about is strong commitment by Fnac Darty. And it's part of a consistent holistic approach which makes Fnac Darty a pioneer in the ecological transition of retail with a more, more sustainable offer to encourage the repair of products and the recycling of all the used products. This position is a bold position, and we are putting our data at the service of the common interest and help our customers to prevent overconsumption and to focus on educated and sustainable consumption. It is something differentiates us from our peers. And I'm certain that will enable us tomorrow to really ensure that our brands are preferred. All these initiatives that define societal and environmental commitment of Fnac Darty, it's a commitment that is being recognized by experts. We are ninth positioned among 73 European retailers that have been rated by Vigeo Eiris. In the plan, we're going to commit even further to ambitious objectives with sustainable consumption with a growth of more than 50% of repaired products by 2025. Last major ambition of the Everyday Strategic Plan is to popularize our assistance service through subscription. The services have always been an essential part of the group's DNA, namely a part of its profitability. Now our services are based mainly on a transactional model. That is to say a service dedicated to the sole product. Everyday is a revolution towards a new service model aligned with the expectations of customers around the use of products but also peace of mind. A relational model over the long-term with a simple offer and limited and without any commitment. A model which will generate recurring cash flow, a model which will faster repair rather than replacing products by new products. This new model is Darty Max. And the service, a unique service of repair through subscription service, and we aim to have 2 million subscribers by 2025. With a new assistance service for households, Fnac Darty will become indispensable for customers and will develop further customer trust and generate repairs on a large scale. Darty Max and Vanden Borre Life transform our prepaid service extension guarantees with a subscription model that is unbinding. With Darty Max, that's EUR 9.99 per month, you can have your devices repaired, and this is unlimited. One year after launch in France, and in the context of the stores have been closed part of the year, we have managed to have an increase of 200,000 subscribers. Now this subscription model is nothing new to Fnac Darty. We have 11 million subscriptions that are managed by the group via our customer loyalty programs, our existing services like the Serenity pack. To attain our ambition of 2 million subscribers to Darty Max by 2025, we're going to extend the offer to the whole of the home and develop new distribution channels for this offer, to go from a prepaid model to a subscription model that is mutually beneficial for customers but also for Fnac Darty. And lastly, to create a continued relationship with customers and to enhance all along their subscription, their customer experience. We're going to develop this service to its maximum potential around 2 approaches: services for the whole home. Darty Max is concerned only electrical appliances, but it will be extended to a whole of their home, starting with categories of products that we commercialize already, for example, the small household appliances. This will be as from this year by the 2025. Darty Max and the program that covers all of the problems in the home will provide serenity and simplicity to customers at home. It's a service that will be accessible everywhere. Today, we commercialize most of the services to products that are sold in-store. Tomorrow, Darty Max will be sold not necessarily with the purchase of product through all of our outlets. Customers come to -- we have roughly 1 billion opportunities of selling these services, thanks to footfall. And a customer who has a machine that is broken down, whether or not bought at Darty can subscribe directly to the service online without necessarily having to get in touch with the salesperson. Darty Max will also be sold in B2B to C via our network of trusted partners. As an example, signature of partnership of distribution with Sofinco when enabled soon to distribute more widely Darty Max,and to jointly develop an offer of free credit dedicated to sustainable products for consumers. I'm very proud to announce that this agreement is part of the global partnership with Crédit Agricole and Sofinco, a group that has supported our development sustainably. I would like to thank Philippe Brassac and Stéphane Priami for all the negotiation of this agreement. And I propose that we look together a video that Stéphane Priami has prepared concerning this shared joint project. [Presentation]

Thank you, Stéphane. So the potential is huge. 50% of homes in France, 15 million households are interested or very interested by this offer, thanks to the extension of the service in terms of offer, and in distribution channels, we intend to have 2 million subscribers by 2025 and to really be the major player in the home. Darty Max is a true disruptive approach in providing and selling services. It sets up a virtuous cycle with the customers. For the client to have access to service which normally is expensive, it's a guarantee of tranquility of mind. And above all, it is a certainty of being committed to sustainable consumption. But for Fnac Darty, its opportunity to consolidate quality relationship with the customers over the long-haul with more frequent points of contact than a simply transactional relationship. It also generate permanent cash flow with strong resilience to seasonal variations at exogenous shocks. Same service sold through Sofinco will multiply by 2.5 the absolute value generated in prepaid approach with an extension of warranties over a period of 5 years. Fnac Darty provides a simple answer to a customer problem relating to the home and renders the service indispensable. Fnac Darty is there for the customer, when the customer needs Fnac Darty. Through this new relationship, we're going to go much further, simply focusing on the customer will become an ally on an EBITDA basis and preferred partner on the long haul. The strong aspect of this model is its potential for growth and its appeal in terms of profitability is based on 4 historical strong and distinctive strong points. Knowledge of services included in subscription services to be able to design the best services at the right price for our customers. Capacity to recruit subscribers at a low cost, via namely our network of stores with sales staff that are recognized for their competence. This has enabled us to go very quickly in launching Darty Max and benefit -- with benefit from very low cost of acquisition customers. We start by providing the services ourselves by doing the repairs ourselves. This is one of the distinctive assets of Darty and guarantees the quality of service and controls costs and expertise in the management of subscriptions in themselves, activation, retention of clients as well. Today, the only player able to operate this unique service with such a level of profitability is Fnac Darty. We are carrying out this revolution, and we are doing 3 major changes in the retail world. We go beyond the purchase the product, and we're working towards sustainable use of the product, going beyond customer centricity towards becoming an ally on an EBITDA basis in the home and have EBITDA with a recurrence of cash flows. And we've seen that our new Everyday Strategic Plan is based on 3 strong pillars: excellent digitalized human omnichannel approach; sustainability; and subscription services for the home. These 3 pillars are strongly interconnected, and it's by working on all these aspects and in a coordinated manner that we are going to succeed. To give an illustration, Darty Max is, of course, the cornerstone of our ambition regarding services. But it is also a major vector towards transition and sustainability. And it's the strength of our omnichannel approach that enables us to do this in a complete manner. Everyday is a consistent, innovative plan through its innovative approach in terms of service and sustainability, and it revolutionizes the world retail and service to consumers and support to the planet. This is a very ambitious plan, and its execution is going to be a key element. To ensure this, we are fortunate to have a team at the [indiscernible] level, which is excellent. And we have everywhere in the world, the best retail team, 25,000 employees that are committed every day for our customers. This team has proved its capacity to execute with the Confiance+ success story, and in spite of an unprecedented crisis. [Foreign Language] We come to the end of this, and we come to what is going to happen in the years to come. Everyday is the third stage in this cycle. In the beginning, we've built our leader position in our markets via Fnac and Darty coming together. Then there was Confiance+, which sustainably built the omnichannel platform, which is the strength of our business model today. And from now on, we are launching the new part of our history with Everyday, which will make of us, on an everyday basis and sustainably, the ally of our consumers to support them in a sustainable consumption behavior and the Everyday uses and practices right from their homes. And with great enthusiasm, I present this plan to you. Thank you very much for your attention. And now I'll hand the floor to Jean-Brieuc, who's going to present to you the financial aspects of the plan.

Thank you, Enrique. As you've understood, we are activating various instruments contributing to the improvement of the performance of the company in the years to come. Given the crisis context and the uncertainties, let me provide a few details. The various objectives and outlook I'm going to communicate are based on following assumptions: no new prolonged lockdown case or closure of -- closing of stores as the one we experienced in France between mid-March and mid-May 2020; no significant degradation and durable degradation in terms of level of confidence of consumers and the supply chain will remain intact; and no major procurement difficulties for key products. So those assumptions being made, the various actions we are putting into place will lead to following results. First, growth of our revenues coming mainly from an acceleration of the online sales growth; secondly, a significant contribution of services to the gross margin of the company, mainly thanks to a subscription-based model; number three, we continue reducing the operating cost, especially through the action plan on the optimization of service areas of the network of stores; and then a level of investments, controlled level, but meeting the growing needs of digital and logistic activities. I'm going to give you the details. Regarding our revenues, 2020 demonstrated once more the relevance of our powerful omnichannel model. Proof is a very strong growth of ourselves in 2020 on the digital channel, plus 55% over the year. Sales -- online sales accounted for almost 19% of our total sales in 2019, they increased by almost 1/3 of the total sales in 2020, progression of 10 points over -- in 1 year. We are going to continue our strategy and continue generating growth in relying upon the complementarity of our stores and the digital platforms more and more. As we saw, the online sales keep growing. We're going to speed up this process. Thanks to several initiatives, our customers will benefit from the same quality of experience online or in store. We're going to offer more products and services adapted to the needs of our customers. How? First, in strengthening our legitimate leadership in the favorite categories and growing categories like the large and small domestic appliances or technical products. Secondly, in pursuing the diversification of our offer on a highly growing market with a sustainable growth as we did for the urban mobility, and then in reallocating surface areas to buoyant categories. All those initiatives are going to allow us to grow ourselves and by 2025, we would like to generate over 30% of our revenues online. Half of these web revenues will be omnichannel and will create traffic in store, thanks to the success demonstrated of Click & Collect because we believe more than ever, after this crisis, in the complementarity of web and stores. Let's move on to the operating margin. The gross margin should evolve, thanks to several effects I'm going to describe. First, we have an ambition to grow our gross margin, thanks to an in-depth change in the way to sell our services. We already initiated this [ mutation ] with the launch of Darty Max. It is an unprecedented service based on the subscription for repair. The group already accounts more than 200,000 customers of Darty Max, which is a good performance in just 1 year, and the main acquisition channel, the store was disrupted this year to a large extent. Therefore, we have a lot of confidence in this new subscription-based model, and we would like to speed up these deployments with an objective of over 2 million customers of Darty Max by 2025. In terms of financial impact, this is a major change because we are going to move on to a model of a one-off payment to recurring subscription-based model. And it will have an impact on the income statement. This will lead to significant growth of the contribution to the gross margin services generating margin. And the model based on subscription should be a recurring cash-generating model, therefore, better visibility. And this gross margin growth on services will more than offset the dilutive effects. Regarding the online sales, there is a dilutive impact of the product mix on the gross margin, prices being aligned between web and stores. On the franchise side, we would like to continue regular development of the franchise, leading to a dilutive effect on gross margin, but which will remain accretive on the operating margin. To conclude, we expect, therefore, altogether regular growth of the gross margin throughout the plan, driven by the major transformation and gradual transformation of the service offer towards a subscription-based model. Let's move on to the operating costs. As you know, the company has a very strong culture of optimizing cost. This being so for several years. And we'll keep on doing that at all levels. Performance plans rolled out in all stores, generating almost EUR 30 million of savings each year over the last 3 years to offset inflation. Of course, we're going to continue those performance plans in the years to come and go even further. As Enrique explained to you, we believe that the network of stores is a key asset for our omnichannel strategy. Those last few years, the company strengthened densification of the territory coverage. And the network of stores is already profitable to a large extent, 95% roughly in 2019, thanks to a constant work on cost control. End of 2019, all countries included, this accounts for about 30 own stores not really profitable yet. For 2020, this figure does not make sense really because of the lockdown total or partial lockdown of stores. The ambition of the company is to have a network of own stores 100% profitable by 2025, thanks to various actions. The streamlining of the existing network will take place through a reduction of reallocation of surface areas of some stores, the format of which has to be reviewed, given the change in the consumption mode. We will continue deploying new stores, but not at the same pace as in the past with smaller formats and proximity stores like Fnac Connect or Darty Cuisine and mainly as a franchise. Overall, the performance plans and those actions should generate over EUR 30 million savings each year over the next 5 years. This way, this will more than offset the rise in inflation over the total duration of the plan. Let's finish with the investments. [Foreign Language] As you understand, we want to increase our sales in the future. And this will require investments, but controlled level of investments. We're going to continue to invest in our logistics and digital tools as to support the increase in online sales. More than half of our CapEx is going to be allocated by 2025 to logistics and IT infrastructures so as to be able to address the strong demand of web orders, this is more than EUR 40 million for the modernization and the upscaling of our logistic tools that Enrique talked about before. There is a new equipment to enable the group to generate in the medium-term productivity gains, thanks to a lowering of the cost per parcel of roughly 20%. And top of these exceptional investments of EUR 40 million, which should impact the first years of the plan, we will have annual envelope of CapEx of roughly EUR 120 million. This level is inferior to that of 2019, which was EUR 145 million and slightly higher than that of 2020, in which during a crisis situation, the group has decided to reduce significantly its investments to EUR 99 million. As we have shown, the group is deploying a complete strategy through concrete actions for all of its value chain, growth of sales, gross margin and controlling CapEx costs. So these different levers are going to significantly increase our generation of recurring cash flow. Thanks to all the strategic levers of the Everyday plan described, the group will have an operating cash -- free cash flow of EUR 500 million for 2021 to 2023. And in 2025, an operating free cash flow annual that would be equal at least EUR 240 million on average. We wanted to communicate on free cash flow trajectory in the short term for period of 2021, 2023. In 2020, the cash -- free cash flow was EUR 192 million. And this is particularly a high level and explained by a typical seasonality due to the crisis because the group ended 2020 with a level of stocks that was exceptionally low, given the high sales that were recorded in December. In 2021, we're going to have to rebuild these stocks and invest a little bit more than in 2020, as I explained. So we'll have to expect a free cash flow of 2021 slightly lower than that of 2020. All of this, depending on the level of sales for the fourth quarter of '21. For the period, '21-'23 in terms of annual progression, free cash flow should be growing between 2021 and 2023, with the last year representing the high point in the period. Thus, over a period of 4 years from 2020, including the previous year, to 2023, the group plans to generate close to EUR 700 million of free cash flow, which represents a little bit more than half of the group's capitalization and in a period where 2 years have been impacted by COVID. 2024 will be a year of transition with an acceleration of generation of cash to attain at least EUR 240 million in 2025 as an average total. In the end, Fnac Darty is planning to generate over the 5 years of the Everyday plan from 2021 to 2025 included with cash flow -- free cash flow accumulated with EUR 900 million, with an acceleration of cash generation adds from '24, thanks to all of the levers that were presented earlier on. Now let's move on to policy regarding the allocation of cash. As Enrique explained, we're going to reimburse all of our government-guaranteed loan by next April. So excluding the EUR 500 million of this loan that we never needed to use, the available cash flow of the group will have been EUR 1 billion at the end of 2020. And by adding the EUR 400 million of the revolving credit line that has remained undrawn the 31st of December, the group had a liquidity of EUR 1.4 billion in 2020. I will remind you that our main financial assets, apart from the government-guaranteed loan, our issue of bonds with a maturity of 2024 EUR 300 million and a maturity of 2026 for EUR 350 million, a credit line medium term of EUR 200 million and a loan with the European Investment Bank of EUR 100 million, and we have some minor maturities that come in 2023. Generation of cash will be associated with a low level of indebtedness. It would enable to finance our activities and also to be able to pay our dividends. So we want to conserve margins from maneuver for external growth. We're not talking about structural acquisitions, but small or medium-sized operations for strategic priorities. On top of this, the solidity of the business model and the ambitions that have been clearly outlined, the group is going to [ have the set ] policy of return to the shareholder with a distribution that will be more than 30% in the medium term. The group will propose at the next AGM, the distribution of ordinary dividend of EUR 1 per share for 2020, representing a payout of roughly 30%. And as from the next year, the group plans to increase the ordinary dividend to EUR 1.5 per share. And the group will analyze each year the possibility of increasing dividend through exceptional dividends or through buyback of shares after the financing of eventual possible M&As. And the group does not have a lever of debt net over EBITDA, excluding IFRS 16, that goes beyond twice at the end of June. Now the levers for the last 2 years were between 1.1x EBITDA in 2019 before the acquisition of Nature & Découvertes and 1.9x in 2020 at the height of the crisis. The group considered lever indebtedness that is a maximum 2x EBITDA is an acceptable lever for M&A and different growth strategies, so to have a significant return to shareholders and to ensure a level of indebtedness that's acceptable in the long-term for the group. Before answering your questions, we'd like to remind you briefly what are the objectives of the group for the period 2021-2023 and the profile the group will have in 2025, thanks to the actions that we presented to you. These ambitions will be regularly monitored and measured so as to ensure the success of the Everyday plan. You can see on the screen the objectives that the group has set for this year and the 2 following years. First of all, in compliance with what was announced in guidance in 19th January last, the group is aiming for 2021 slight growth in sales and current operating result compared to 2020. The group will also offer for 2020 for a payment of a dividend of EUR 1 per share. In addition, for the period 2021 to 2023, the group intends to generate close to EUR 500 million operating free cash flow with an increase -- progressive increase during this period. And the group is planning to increase the return to shareholders with -- as from 2021 the ambition to propose a dividend payout of EUR 1.5 per share, representing roughly EUR 40 million. And why not, if there is cash remaining after the dividend payout and after possible M&A operations have been conducted, the group will look at the possibility of doing some buyback of shares or to pay out an exceptional dividend. Let's move on to the last slide of this presentation. You have understood that with Everyday, the Fnac Darty Group is taking a new turn with ambitions that appeared to be built and developed as the plan unfolds. Fnac Darty, in 2025, should present the following characteristics: close to 1/3 of sales online; more than 2 million customers subscribing to the repair Darty Max service; a park of owned stores that are totally profitable; close to EUR 120 million of CapEx allocated to growth activities; operating free cash flow of at least EUR 240 million; returned -- significant return to the shareholders with our distribution rate above 30%, which could be complemented with share buyback programs or exceptional dividend payout; a product offer with a sustainable score of 135; an increased number of repairs of devices with close to 2.5 million repairs conducted; and lastly, by 2030, this time, a reduction by 50% of our CO2 emissions. So this concludes the Everyday -- the presentation of the Everyday strategy, and we are ready with Enrique to answer your questions.

Okay. We have the first question. Could you please compare the operating margin involved in the objective of operating free cash flow of at least EUR 240 million per year from the 2025 with the level of operating margin of 2019? We do not give guidance on the operating margin. We go to the next step, the return to the shareholder. That's the guidance, and we're not going to give guidance on the operating margin. However, all of you in your models, you may stimulate what could be the operating margin. You know the average tax rate, the CapEx very much and the financial expenses. But our belief is that this plan has to be, for our shareholders, our employees, of course, and the durability for the planet. That's the financial guidance, we focus on the return to shareholders. A question on the growth observed at the beginning of the year, is it only -- the growth is only on the web or in the stores as well? As I said, the cumulative business is comparable to the fourth quarter in spite of some closing of stores. So the stores still open are growing and the digital platform is growing. So both channels are growing, more for the digital platform than the stores, but we'll have more details after the first quarter. The third question, your objective is that all your stores will be profitable by 2025, how many stores are not profitable? And what is the impact on the operating margin? You said it already, yes, but I can repeat. We have about 30 stores which are not profitable in the group. About 1/3 of them are ramping up stores we opened up in the last few years and the situation is going to be improved over time. We have about a dozen of stores, for which actions have already been identified and are in progress. It's simple action. And then about 10 of those stores with structural and heavy actions, having a real estate impact and for which actions may last several years. The impact on the operating margin is not given, but it will allow us to go -- so that's what we can say about it. A question on the objective of Darty Max by 2025 and at which pace? So we give you the starting time, already 200,000 members. We have not activated all our instruments, one instrument linked to the offer extension and another one for the new channels of distribution coming this year. And by 2025, I'm not going to give you the trajectory, but we are not that patient. So we'd like to grow as quickly as possible while having the means of doing that at good cost. A question on the strategy of the own stores by 2025 in terms of opening? Well, we mentioned that already. We do not give the number of stores we're going to open. However, what you should have in mind is that we're going to open rather a few own stores and very few large own stores. The stores we're going to open will be Darty Proximity, Fnac Connect, Darty Cuisine, very proximity stores covering the territory well, especially in the town centers. It is adapted to the city centers, especially in a world where we lack surface area in the city center. However, we will keep on meeting the demand of our franchises. The demand is growing. So as long as it makes sense, we'd keep on opening, so not large own stores and the growth of franchise stores, which remain significant. We have a question on the concept of stores and the new format, will it require additional CapEx?

Jean-Brieuc said it, the CapEx for the duration of the plan amounts to EUR 120 million per year for all projects and stores will keep on being digitized. So we do not start from scratch, of course. A lot of work is in progress. What is new is the integration of the experience through our connected sales force.

We have a question on the mergers and acquisitions. You carried out a few acquisitions in those last few years, especially Nature & Découvertes. Can you embark upon a significant acquisition as Nature & Découvertes in the years to come?

As Jean-Brieuc said, we are not against acquisitions. We will have the resources to finance that, but it's not absolutely necessary because our project may generate organic growth. But of course, we'll keep an open eye because if we can go quicker in our innovative approach, why not? So Nature & Découvertes has a given size -- it's an average size. But anyway, the group keeps an eye open and pays attention to possible opportunities on the market.