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Good day or good evening to everyone, and thank you very much for joining this call to present Maisons du Monde's Third Quarter 2020 Sales. My name is Chris Welton, I'm in Investor Relations. Julie Walbaum, our CEO; and Eric Bosmans, CFO, will be hosting today's call. And after the presentation, we'll have a Q&A session. You have no doubt seen the press release we issued after market close. The conference call slides can now be downloaded from and viewed on our website, maisonsdumonde.com. This call is also being audio webcast, and a replay will be available on our website later this evening. All listeners are reminded to read the forward-looking disclaimer on Slide 2. I now turn the call over to our CEO, Julie Walbaum.
Thank you, Chris, and good evening, indeed, to everyone. As we continue to live in somewhat exceptional times, I hope, first and foremost, that you and those dear to you are all well. I am proud to say tonight that Maisons du Monde is turning a strong performance in the third quarter despite the very challenging environment in which we're operating. As shown on Slide 5, our sales reached EUR 321 million, up 13.3% year-on-year on a reported basis and up almost 10% on a like-for-like basis. This sales growth was driven by a number of factors. First of all, the success of our autumn and winter decoration collections. In the midst of a dynamic home improvement market, decoration contributed year-on-year growth of 25%, which vindicates the work we have undertaken to sharpen our collections. Second factor, the timing of seasonal sales, which were moved to July this year versus June last year in most countries where we operate. And third, a gradual work-through of the high order backlog that has accumulated in the past quarter as a result of high demand and supply disruptions linked to the pandemic. As you can see, our sales growth was well balanced once again between stores and online, which demonstrates that our omnichannel model is fully functioning. Store sales were up more than 9%, which is an outstanding performance in the post-lockdown period that shows that our customers remain eager to visit our stores and buy home improvement items. Online sales, for their part, continued at double-digit growth, increasing by nearly 24% in the quarter. This growth was largely driven by the delivery of Q2 orders, which were booked as sales only upon delivery. We also saw growth in order value in the quarter, but to a lesser extent than usual, plus 8% year-on-year due to furniture availability challenge that we mentioned in H1 call. So overall, we are very pleased with this performance, which shows the skills and commitment of all of our teams and also, once again, the strength and resilience of a balanced model across decoration and furniture, stores and online, France and international. On Slide 6, I suggest we take a closer look at the operational highlights that drove the Q3 performance. First of all, we enhanced our inspiring and multi-style offer, notably through the successful launch of our new decoration collections, including 2 major themes: iconic vintage and natural stone, which very much captures the latest decoration trends and also well-suited to our discerning customers. We also prepared, as every year, the launch of a Christmas collection, which is, as you know, always, a commercial highlight for the year. Second, we improved the in-store experience for our customers by optimizing a very large part of our store merchandising plans to better target our customer needs based on the massive data efforts we launched 18 months ago. We also laid the foundations for the in-store rollout of -- in October of Rhinov, our interior design service, to fulfill our promise to become our customer's preferred lifestyle partner. Third, we launched successful commercial initiatives, such as product bundling promotions from tableware to increase our basket size. And last but not least, we finalized preparations for the launch of our curated marketplace, a key milestone in our omnichannel strategy. The ambitious technical replatforming program, on which the marketplace will be operating, has successfully delivered its first major step, and we have also successfully onboarded over 100 vendors. We'll give you more color later on this topic in the presentation. On Slide 7, you will see that we also continued to actively manage our store portfolio in Q3. Store openings have decelerated, as planned. And in Q3, the number of stores remained stable at 366. This reflects the balance between 2 openings, 1 in Saint-Etienne in France and 1 in Granada in Spain; and also 2 closings, one in Granada, Spain and one in Béziers in France, all part of our relocation program to bigger and better locations. As a result of these moves, our total sales area remained stable at nearly 429,000 square meters in Q3. In Q4, we plan 2 to 3 net openings. And our full year forecast is, therefore, 7 to 8 net closures compared to 10 in the first 9 months of the year. With this, I'd like now to hand over to Eric, and I will return after to discuss some business initiatives and prospects for the rest of the year.
Thank you, Julie, and good evening to everyone. I will start on Slide 9 with our traditional slide on geographies, channels and categories. And you see that the slide has returned to its traditional look with growth across the board after a couple of challenging quarters that were marked by lockdowns. Our 13.3% sales growth was driven by stores, online and decoration. In terms of geographies, growth was well balanced between France, up 12%; and international markets, up 14.7%, indicating that we saw a broad recovery across our markets in the quarter. In terms of channels, we also saw strong growth both in stores, up 9.4%; and online, up 24.4%, demonstrating the power once again of our omnichannel model. And by categories, decoration was up by a strong 24.7%, while furniture was up by a softer 1.5%, reflecting current inventory shortages that we are actively working to resolve. We are well positioned, on the other hand, in terms of our decoration inventory, which is well stocked ahead of the upcoming holiday season. Slide 10 focuses more specifically on international and online sales, and the graphs show that we saw strong growth in both. Our international sales rose 15% versus the same quarter last year to reach EUR 151.6 million. This represents 47% of total sales, which is stable versus Q3 of last year. On a compound annual growth basis, international sales has increased by 16% between Q3 2018 and this quarter. Online sales have grown even faster and represent a steadily growing share of our business. In Q3 of this year, they stood at EUR 90.6 million, up 24% year-on-year. They now account for 28% of total sales, up from 26% in the same quarter last year. Compound annual growth of online sales over 2 years is 22%. So you see that our Q3 performance, which was above that, is vastly strong. Now moving to Slide 11. We present a bridge that shows you the various impacts of our sales between Q3 of last year and this year. As you can see, on a reported basis, we added EUR 37.6 million in sales between Q3 of last year and Q3 of this year, representing 13.3% growth. Of this growth, EUR 27.4 million were like-for-like, representing an increase of 10.6% for Maisons du Monde excluding Modani, a very satisfactory performance. Store expansion added EUR 12.2 million on a net basis, entirely due to the 2019 openings, and the combined sales of Modani and Rhinov had a positive impact of EUR 0.1 million. With that, let me now hand back to Julie.
Thank you, Eric. On Slide 13, let me give you a bit of insight on our current trading, with October sales showing sustained activity. Concerning stores, traffic is broadly stable despite social distancing measures, and commercial activity is up in mid-single digits. In line with our Q3 performance, the growth remains driven by decoration items, while financial sales are slower, owing to the inventory issues we described previously and which we are actively addressing. Online orders are up in high teens through a combination of higher decoration orders and lower furniture orders. Overall, we continue to have suboptimal inventory in furniture as a result of strong sales activity and a slow rate of deliveries from suppliers who struggled to adapt their capabilities to the global surge in demand. We are working actively with all of our partners to gradually build up this inventory over the next few months, and we expect normalization over the course of 2021. As Eric already mentioned, our decoration inventories, which remain the highest share of Q4 sales, are well positioned for the upcoming holiday season. On Slide 14, we focus on our commercial priorities for the rest of the year, which are broadly unchanged compared to the prior quarter as we continue to be more selective in defining our priorities in the current context. We remain, first and foremost, focused on continuing to offer our customers a quality and safe omnichannel shopping experience in sanitary conditions that remain exceptional. As I just said, we are also actively working towards normalizing the supply level by rebuilding inventory. Third, we are just about to launch our curated marketplace. The launch is now clearly imminent. We will be starting in the next very few weeks in France with about 25,000 SKUs from more than 100 sellers in the following categories: furniture, bedding, outdoor but also textile and decoration items, therefore, doubling our assortment online and increasing traffic to our website. The idea here is to broaden our offer with products that are complementary to ours in terms of style and user needs while respecting our quality, affordability and sustainability requirements. In doing so, we want to propose to decoration and furniture shoppers a truly differentiated one-stop shop. This is a major step in our digitalization and in our ambition to be the reference lifestyle partner of our customers. Finally, another key strategic priority is to advance on building our second warehouse in the north of France, which will enhance our logistics and help with our issues like those we faced earlier this year because of the Marseilles workers' strike. The second warehouse is a key enabler of our strategic ambition in terms of operational cost reduction, risk management and sustainability. We expect this space opening, with the first section coming early 2022. Let me now conclude on Slide 15 with some observations on our expectations for the full year on the back of this Q3 performance. We currently expect that full year sales will be down mid-single-digit year-on-year. This supposes that most stores in Europe remain open most of the time through year-end. In terms of store network, we should end the year with 368 to 369 stores, which is up from the 366 stores we were operating at the end of Q3 but down from the 376 stores that we had at the end of 2019. This reflects both our continuous action to optimize the store portfolio and the necessary caution we are exercising in the current environment. Finally, we do have comfortable group liquidity with available cash at 30th of September of EUR 299 million. This comes after we reimbursed in September of EUR 150 million relating to the 2 revolving credit facilities that were drawn down in March following the COVID lockdown in Europe. This amount provides us with the required headroom to address the uncertain environment that we still face. In conclusion, you can see that despite the challenging circumstances, the Maisons du Monde balanced model keeps showing its resilience. Uncertainty is currently high, but we remain fully focused on our commercial operations as we enter the holiday season, which, as you know, represents a good part of our annual results. Thank you very much for your attention. Eric and I are now happy to take your questions.
[Operator Instructions] Your first question comes from the line of Nicolas Langlet from Exane.
I've got 3 questions, please. The first one on -- in October, so you mentioned a good trend. But have you seen any signs of slowdown or impact since new measures have been implemented? And I'm thinking about the curfew in France, Belgium, Spain, et cetera. And on your sales guidance, have you factored in the mid-single-digit decline any impacts related to the measures already announced? Second question on OpEx evolution for the full year. So based on your sales guidance for the full year, what level of OpEx savings you expect for the full year? Initial plan was minus 10%, then you said it's going to be below that because sales performance was better. So based on your Q4 expectation, what sort of OpEx optimization do you expect for the full year? And finally, on FX, can you remind us at which rate you cover the short position in USD for full year 2021? And what's the rate for 2020?
Thank you, Nicolas. I would take your first question, and Eric will take questions second and third. So the question around current trading, so as we said, indeed, since the beginning of October, we see sustained activity. Footfall has now -- has been slightly negative compared to the same period last year, but stores remain well oriented, mid-single digits, lifted by the success of our decoration categories. And online growth is in the high teens. So overall, like-for-like, it's in the high single-digit range. We have not seen any impact of the current curfew measures. So the trends have been stable throughout the month. And the current forecast that we give both on Q4 and full year does include the recent government announcements, such as the Italian government, which indeed decided to close down stores during the weekend. So this is included in our current estimates.
Okay. Nicolas, so to your first question about OpEx savings, indeed, earlier in the year, we said that we intended to reduce OpEx by 10% over the course of the year. Just let me remind you what we meant by OpEx. So basically, we are talking about the cost between the trade margin that we disclosed in our H1 numbers and the EBITDA, and that is in IFRS 16. So that's basically the bucket of cost we are referring to. So the current view with the current sales forecast and the performance we had, particularly in Q3, and there will be a saving this year, and the savings will be in the mid-single-digit plus for the full year compared to 2019. So that was for your question on OpEx. On foreign exchange, indeed, as you have in our mind, we do hedge our U.S. dollars. And we buy about 90% of what we -- of the goods we buy are actually denominated in dollars. So we do hedge in advance, typically about 15 months in advance. So we have a reasonable view about what the rate will be for 2021, and we expect it to be in between USD 1.15 and USD 1.17, which basically compares to a rate between USD 1.17 and USD 1.18 for 2020.
Okay. Okay. Perfect. And just on the OpEx, so you said it's a mid-single-digit plus in absolute term. What sort of level are you expecting? Or can you give us the base of full year '19 between the trade margin and the EBITDA margin?
Well, the decrease basically is the rate of decrease of what's in between what we published in 2019. So that's actually an evolution year-on-year.
Okay. Okay. I will see with Chris to have the detail on that. No problem.
Your next question comes from the line of Georgina Johanan.
A difficult one to answer, I suppose, given just the uncertainty obviously around what the French government will decide in terms of restriction. I guess my question is around just decoration. And if retail is kind of locked down at the weekend, first of all, how much flexibility on the cost base will you have in that instance around sort of staff costs, in particular? Would you expect trade to sort of shift into weekdays given the patterns of footfall that you've been seeing? And then also on decoration, if a lot of that trade is sort of shifted back to online, how should we think about incremental costs necessary, particularly around logistics costs to sort of service that channel shift in that circumstance, please? I appreciate it's a very uncertain situation.
Georgina, thanks for your question. Can you just repeat the last bit of it, please, around the extra cost?
Yes. I'm just thinking if there is a short-term lockdown introduced in France and stores are shut, and some of that decoration demand hopefully is shifted to online, how should we be thinking about the margin in Q4 in that circumstance? Do you -- yes.
Okay. Thank you. So indeed, we are preparing for all eventualities that correspond to the different scenarios that we, like you, probably hear about. So the scenarios being discussed or that we hear about are about extended curfews, weekend closures, but also complete lockdowns, like we saw in Q2 at local or regional level or total level. And basically, we have an action plan for each of those eventualities. So if we have fewer hours during weekdays and weekend closures, this actually for us looks like the yellow vest period, where basically the movements were particularly active over the weekends. And what we could see is that the customers were consuming more during the weekdays. And so we assume that there will be some shifts from weekends to weekdays. We also consider to open our stores earlier than usual to keep basically the same amount of opening hours for our stores in the case of extended curfew. We are also considering the acceleration of our click-and-collect initiatives. Basically, that is the fulfillment of our online orders from the store inventory. Up to now, we basically ship them directly from the warehouse to the store. But we were piloting earlier this year the fact that we can fulfill those orders directly from the store inventory itself. And basically, we are accelerating on that to be able to propose that to our customers, potentially also improving our promise, which is a few hours delivery rather than a few days, because the idea, indeed -- and that also answers part of your question around costs, the idea is to indeed limit the additional cost of decoration itself made online. And basically, this is about limiting the fulfillment cost. This is why we are organizing ourselves about making our stores basically pickup points through drive-through, other pickup system, at least at our top stores on weekends, if that is authorized. So all of this is in progress. Now if we have complete lockdown, we will -- as we did in Q2, we will shift all of our efforts to the online business. We have 2 extra weapons, so to say, compared to Q2. The first one is the imminent launch of the marketplace, which is really a matter of a couple of weeks now. So as we enter the holiday season, we will be adding 25,000 SKUs, half furniture, half decoration. So that will very much extend our possibility to offer decoration items that will be shipped directly from the vendors to the customers. And we also have this store pickup system that we are currently piloting and about to accelerate on. And leveraging the experience in Q2, we are also considering the acceleration of our online marketing investments based on the RI approach that we had already in Q2. So basically, we have already demonstrated our agility from -- in Q3 -- in Q2, sorry, and I think we can be even more agile in Q4 with the marketplace and the store pickup system.
And could I just follow off on any sort of cost saving opportunities if that was to happen as well, potentially around sort of weekend staff costs and so on potentially there? In that scenario, you would expect your cost savings to be greater than the mid-single-digit plus that you called out.
Yes. And just to go back to Nicolas' questions about the quantum, basically, the cost base I was referring to is EUR 328 million. That's the number we had in 2019. So the mid-single-digit plus applies to that number, which basically equates to about what we communicated in H1 about the cost savings. So we communicated a number of EUR 25 million, which was basically made of 2 things. One was a rent discount, and the rent discount we booked in H1 was EUR 5 million. The current view -- obviously, we kept negotiating with suppliers. The current view is that the full amount for the year is going to be closer to EUR 9 million. And then we had OpEx savings in terms of temporary employment, whereby in the various countries, government actually took the charge of the salaries. So about your question, it really depends on what sort of measures there are in place in the various countries as to whether we can open stores at the weekend or not. What about government help? Obviously, we don't know that. But obviously, what we know is that we've shown in H1 our agility and ability to actually manage the cost and even costs that are basically deemed as fixed. So obviously, we'll be extremely agile and react very quickly once we know what sort of measures are in place. But it's difficult actually to give a number because you just don't know what the sort of lockdown measures will be in the various countries.
Our next question comes from the line of [ Thomas ].
Can you hear me?
Yes. We can.
I'm [ Thomas Mardel ] from Bank of China. I had just a general question concerning supply chain and supply management. Did you had an impact on your suppliers, especially coming from Asia and China concerning -- during the crisis? I don't know if my question was clear.
Yes. It was, absolutely. Indeed, the typical lead times in furniture are about 4 months plus. And now they moved to 6 months plus on average. So indeed, a substantial increase in a typical lead time for furniture, and that is linked to the fact that our suppliers are located in Asia for 90% of them. And indeed, in Asia, we can see disruptions linked to the pandemic at 2 levels. First, at the raw material level with the global surge in demand, there is more tension to get raw materials. And second, on skilled labor, compared to other suppliers and retailers, we ask for specific know-how because, as you know, our furniture is partly crafted. So we can't extend as easily the very skilled labor force that we need. So indeed, those lead times have increased. We obviously are taking a set of actions to mitigate that. First, we have implemented tighter management and ongoing arbitrage with our top suppliers, basically making sure that we secure the availability of our best sellers. So we have now weekly and daily meetings with them to make sure that we maintain this arbitrage capacity. We have also put in place some transfers from suppliers having low capacity to suppliers with higher capacity. And we are also currently onboarding new suppliers, which will impact the overall picture to a lesser extent, given the fact that we have a tight quality management process before onboarding suppliers. But the transfer and the time management of our suppliers make us believe that we will be able to resolve the supply chain challenges on our best-selling items by the end of Q1, very start of Q2 at the latest and by summer for the very long term. Now for this very long term, the good news, again, is the launch of our marketplace, which will be -- allow us to offer vast portfolio of furniture to our customers and help us address this short-term challenge about availability. Now just as a reminder, for Q4 numbers, furniture in Q4 represented 38% of sales, whereas they represent 49% of sales for the first 9 months of the year. So indeed, we face challenges as to supply chain for furniture. But this will have obviously a much lower impact than it would have had earlier in the year because the high share of sales in Q4 is decoration and the inventory level on decoration at the normal level.
Your next question comes from the line of Clement Genelot.
I got 2 quick questions on my side, if I may. The first one, assuming store closures in France in November, do you think your logistics structure and your delivery partners can support a stronger online sale and also stronger online deliveries? I get your point regarding your new store pickup system. But do you think that will be enough to support the stronger online business? My second question is regarding the shortage of furniture. Is it still something that you see among other European furniture retailers?
Thank you for your questions. Starting with the second, we see challenges in supply chain across the board. It is true that we see more of these challenges for those retailers that have their supply chain in Asia because we see more disruptions in Asia regarding supply chain, typically because the manufacturing ecosystem in Asia is more labor-intensive. And the challenge I was describing earlier on, around the fact that there is a high tension in labor, makes it more challenging for Asian manufacturing compared to European manufacturing. So that is true. But again, we are currently addressing that. On your first question, that is if stores get closed in November and we have to resort more to online, will our delivery partners be able to support this bigger momentum? My assumption is yes, because the share of online orders will be much more geared towards decoration in Q4 compared to furniture. And this is a very different delivery partner network. The -- basically, the tensions that we could see in Q2 and Q3 because the delivery of big furniture is a process which is a bit of a cumbersome process. You need to take appointment with the customers, who doesn't pick up the phone, and then you have the appointment, and you need to fulfill all of your trucks and so on. The decoration item delivery is through basically La Poste, Colissimo. Delivery networks are now very, very used to very big volumes, especially during this quarter. So I don't expect we would have the same challenges on top of the fact that I was describing, which will result more to a store pickups for bigger online orders.
Your next question comes from the line of Thy-Tine Florent.
Just a follow-up question regarding the last question. If we expect more decoration activity on the Q4, do we have to expect a decrease of profitability regarding delivery cost higher than for the furniture, for example? Second question on gross margin. I know you do not communicate on quarterly gross margin. But regarding the project mix, can we assume an improvement in Q3? And my last question is regarding your outlook, a minus 5% in 2020 imply a minus 7% in Q4. So why are you so cautious if we consider that the stores won't close? We saw in the past that even if the environment is quite tough, you always saw a positive growth in Q4. You also mentioned that the order backlog is still well oriented in October, so positive growth. So can you give us an idea why you are so strategic from the furniture inventory programs? Or -- yes, can you can give us more detail on that?
Sure. I'll take your third question, and Eric will answer questions 1 and 2. So on your third question regarding the outlook, so it's true. Basically, the current full year estimate that we gave factor a fairly vast range because it goes from low single-digit to mid-teens sales drop in Q4, and that assumes most stores remain open for most of the time through year-end. And indeed, that comparison in Q2, the like-for-like drop was minus 16% in basically a scenario of full lockdown for half of the quarter. So basically, we take indeed a rather cautious scenario in terms of lockdown measures, but not full lockdown, to be clear. And basically, what drives this cautious estimate is the 2 factors that we described, the -- basically, the high uncertainty of macro. It will be cleared, hopefully, in the next few days, through the government measures that as we see it, it will be region-by-region, at least country-by-country. And as you know, international is almost half of our sales. So it really depends on what each government will decide. So this puts a lot of uncertainty on the macro basically. And second is the supply chain challenge I was describing. As I said, furniture is much less important in terms of sales mix in Q4, but it's still 38%. So -- and we are about to launch the marketplace. We took a cautious view. It's not a very cautious view on the marketplace sales in Q4 just because we have not launched it yet. So with -- this is why -- which was to give this, what we can call a cautious estimate. But again, the uncertainty is very high as we speak.
Yes. Your question about gross margin, so what we said previously is that the gross margin would be similar for the full year than last year, and this remains true. Basically, there are, well, various elements impacting the gross margin, but the 3 key ones: One is the promotion activity year-on-year, and the total promotion activity for 2020, if you take the year in its entirety, is going to be similar to what we had last year. The second one is the product mix. And despite all the disruptions and everything that happened this year, overall, the weight of furniture is expected to be in line for the full year as it was last year. And indeed, in Q3, furniture represented 49% -- sorry, in year-to-date Q3, 49% of total sales and -- which is exactly the same number as we had last year. And the third element is around exchange rates. And as I've said, the exchange rate for this year is expected between USD 1.17 and 1.18, which is not very dissimilar to what we had last year where we were almost at USD 1.17. So all in all, the gross margin is going to be very, very close to what we had last year. So that's for the gross margin. Then your question about overall profitability, well, basically, obviously, there are lots of assumptions we can make about what's going to happen and how customers will behave. Partly, stores are closed and actually move to more online sales. But we do not expect, even if that was the case, a big swing in profitability in Q4 over a normative level.
Next question comes from the line of Pit Bowen. The next question from -- comes from the line of [ Ben Lannone Kiel ].
Can you hear me?
Yes. We can.
Just 2 quick questions, please. The first one is regarding the definition implied in your guidance. Are you basing your guidance on the like-for-like change or on the total sales published? I mean, if we take the 9 months, is it compared to the minus 4.4% or to the minus 8.5%, just to be clear? And second question on the rent negotiation. I remember that you stated the EUR 5 million registered in the first half was the maximum that we can expect. And basically, the negotiations were almost finished. So just to be -- just to understand the EUR 9 million you've mentioned, why did this amount almost doubled for H2?
Sure. I'll take your first question, and Eric will take the second. So to be 100% clear, our current estimates, I'd rather talk about estimates and current expectations rather than guidance, given the very high uncertainty that we navigate in, is around total sales growth. So our full year sales are expected to be down mid-single-digit year-on-year on total sales growth, assuming, again, most of Europe will be open through year-end most of the time. So this is for total.
Yes. And to your second question about OpEx savings coming from rent renegotiations, so indeed, we did book EUR 5 million in H1. And basically, what we do is we book the profit when the negotiation is actually ended and concluded with the landlords, so -- which is obviously the right thing to do. So when we closed the H1 books, we were at EUR 5 million. Obviously, we kept negotiating with a number of landlords. Most of the negotiations actually concluded over the summer, and that's why we booked an additional EUR 3 million. And some of the negotiations actually are still going on. And we are confident that they will conclude before the end of the year. And that's for yet another EUR 1 million. So the EUR 5 million plus the EUR 3 million plus the EUR 1 million, that's the EUR 9 million I referred to before.
Your next question comes from the line of [ Michael Majerski ].
This is [ Michael Majerski ] from Merchant Capital. Congrats on a very good quarter. Two questions for me. The first one is, could you tell us what your CapEx expectation for the full year is and also the working capital inflow for the full year? We saw a good inflow in the H1 as a result of lower inventories. I mean, do you expect that to be confirmed in H2 and for the full year? Any color would be useful. And finally, it seems that the balance sheet is well under control. And that the trading is satisfactory. Assuming no further hard lockdowns down the road, would you expect Maisons du Monde to resume its previous dividend policy in 2021?
Michael, thanks for your questions. Can you just repeat the very last piece of your last bit? That is, can you -- can Maisons du Monde resume?
Yes. My last question was about, what about the dividend, which has been suspended for obvious reasons in 2020? It looks like things are well under control from a balance sheet standpoint as of today. So assuming no further hard lockdowns as we've seen in Q2, would you expect Maisons du Monde to resume its previous dividend policy in 2021?
Okay. So I will take your 3 questions. The first one about CapEx, so last year, the total CapEx was EUR 60 million, of which EUR 4 million referred to logistics, related to logistics. So excluding the logistics CapEx, what we do expect now is the -- so excluding logistics CapEx, to be down year-on-year by about 30%. And we quoted 40% before. And the reason for the increase is partly because we decided to actually advance some of the CapEx for openings, store openings within 2021. So we basically moved that in advance to 2020 in Q4, although the opening will still be in '21. But we will incur some CapEx in this year. And we also went ahead with more refurbishment than we initially anticipated. So that's for the CapEx, excluding logistics. So now for the logistics CapEx, so as I said, this was about EUR 4 million last year. So we expect an additional amount of about EUR 15 million this year, and that very much relates to the warehouse in the north of France. So all in all, if we take the overall CapEx, it's expected to be slightly down year-on-year. So that's for your first question. And on your second question, indeed, in H1, we generated a positive cash flow of EUR 43 million, which was obviously a very good and very high number. We made it very clear that this was, by no means, a normative level of free cash flow because we -- well, for a number of reasons, including one-offs. We renegotiated payment terms with suppliers. We deferred rent payments, and we mentioned an amount of EUR 14 million, which obviously we don't expect at year-end. And also, we had cash from undelivered sales, which, again, is not expected to be repeated at year-end. So what we said at the H1 was that excluding the one-off CapEx would have -- sorry, free cash flow would have been slightly negative. So again, H1, very unusual. So what we do expect for the full year and the view for the year-end is a level of working capital to be closer to a normative level of working capital. So most of the benefits in H1 will reverse into H2. And lastly on inventory, which was extremely low at the half year, we expect to close the year closer to where we were at the end of December 2019. So all in all, it will be very likely a positive free cash flow for the year, but not obviously what we experienced in the H1. So that's for the free cash flow and the working cap question. To your third question, obviously, 2020 is a very unusual year. So we took very unusual decisions. And one of them actually, the Board took the decision not to pay a dividend. This was very much a one-off decision. So we expect obviously to resume to go back to normal as from 2021.
Your next question comes from the line of Thy-Tine Florent.
A question regarding the OpEx evolution. So the mid-single-digit saving in 2020, can we have an idea which part is structural?
Well, it's -- we were very clear that it's very much one-offs. So -- and we do have quite a good policy on cost control. But basically, what happened this year was very much due to one-offs, money we got from landlords as to rent reductions, but also temporary measures from the various governments about temporary unemployment. So you should consider them as largely one-offs.
You have no further questions. Please continue.
So that concludes our call for tonight. Thank you very much. If you have any questions, obviously, I'm available after the call and later on tonight as well as tomorrow morning. Thank you very much, and have a good evening.