Shufersal Ltd Class B · TASE:SAE
Shufersal Ltd Class B — Investor Presentation (March 2023)
32 slides from Shufersal Ltd Class B's investor presentation, March 2023
Slide 1: Company Presentation
Company Presentation March 2023
Slide 2: Disclaimer
Disclaimer This Presentation was prepared by Shufersal Ltd. (the “Company”). This presentation does not constitute an offering for the purchase or sale of the Company’s securities nor an invitation to receive said proposals, rather is solely intended for the provision of information. The information
Slide 3: Shufersal At a Glance
Shufersal At a Glance Founded in 1957 Three main segments(1): As Israel’s first modern supermarket • Retail ~92% of sales chain, Shufersal is the country’s • Retail stores leading and largest food retailer • Online • Private label • Finance • B2B Wide range & diverse retails formats • Be (Pharma) c-
Slide 4: Shufersal Group
Shufersal Group Discount format Urban format Core Activities Growth Engines Private Labels Anchors Additional Activities 4
Slide 5: Strategy
Strategy Growing online Segment ; and a developing marketplace offering Online Growing contribution with Highly revenue synergetic Private stronger margin and robust expansion into pharma, Be Label value proposition cosmetic and toiletry Customer service and experience Identifying M&A opportunities
Slide 6: Change in Sales and CPI
Change in Sales and CPI (StoreNext) Israel FMCG, 2022 compared to 2021 Seasonality +5.1% CPI Change +2.7% NIS 1.4 billion COVID-19 Total increase -2.4% in turnover Real change 6
Slide 7: Shufersal 2022 – Key Metrics
Shufersal 2022 – Key Metrics 309 Shufersal Stores NIS 14.7bn NIS4.9bn (2) Revenue 91 Be Stores Market Cap. 10 Stock Stores c. 18% Food Retail Market Share(1) 8.8% NIS 3.4B EBITDA Margin Property Owned Value 19.4% Online Share(1) 27.2% ilAA-/Stable (3) Private Label Share(1) S&P Maalot Rating c. 16,5
Slide 8: Retail
——__— SHUFERSAL
Slide 9: Retail KPIs
Retail KPIs Sales per sqm(1) Total Retail Revenues Avg. Commercial space (NIS M) (NIS B) per store(2) (K sqm) 27.9 1.73 14.4 1.67 1.65 26.3 13.8 1.62 13.6 25.4 24.8 12.6 (1) Shufersal stores, including online sales, excluding Online Be and “Rural region” 9 (2) Shufersal stores, excluding shipping ce
Slide 10: Strengthening the premises in the branches
Strengthening the premises in the branches Be Non-Food Green • Currently in 10 branches • Non-Food departments • About 100 branches • The complexes opening improved the • 35 large branches including electrical • Continue GREEN private brand sales of the pharmacy in these branches products and househ
Slide 11: Shufersal Online: Israel's #1 E-commerce Website
Shufersal Online: Israel’s #1 E-commerce Website Shufersal Online's Startegy contributed to increased sales • Nationwide footprint, backed by robust logistic Automatic shipping center (CFC) The online sales rate through automatic delivery centers is expected to infrastructure covering 100% of the po
Slide 12: Consistent Expansion of Private Label
Consistent Expansion of Private Label 2019 2020 2021 2022 Strategic Target % of sales 25.2 25.8 26.6 27.2 35.0 % % % % % 3.9 3.8 Sales (NIS B) 3.8 3.3 Strategic Target • Ice creams • Deli salads • Shampoo • Cornflakes • Consistently expanding • Gluten free products • Cleaning supplies • Cookie Dough
Slide 13: Israel's Largest Customers Club
Israel’s Largest Customers Club Customers Club Overview • #1 Loyalty program with over 2mn households • Launch of a new Loyalty program “SUPREME” which offers an improvement in terms and benefits for customers and an easy and fast connection with the PayBox digital wallet • Most loyal customers conv
Slide 14: Shufersal B2B Tapping into a Fragmented Wholesale Market
Shufersal B2B Tapping into a Fragmented Wholesale Market Cash & Carry Rural & Urban Region • Opened 1st store in 2018, targeting urban mini- • Providing solutions for groceries in rural markets, kiosks and food service customer. communities, “kibbutzim” and urban groceries. • Attractive value propos
Slide 15: Technological Innovation
Technological Innovation A successful pilot was carried out in two branches this year, the results of which are: • Increasing the shopping basket • Savings in operating expenses • Increasing customer satisfaction • Reaching 50 Shufersal Deal branches with a smart cart in 2023 • In collaboration with
Slide 16: Be
Be ——__— SHUFERSAL
Slide 17: Be – Expansion into Pharma, Cosmetic and Toiletry
Be – Expansion into Pharma, Cosmetic and Toiletry (Cont’d) Rapidly Growing Segment (1) Number of Stores Revenue (NIS M) Operating Profit (NIS M) 90 91 966 1,045 708 815 2 86 83 -3 -19 -76 Strategic Initiatives • Online pharmacy – delivery through Shufersal website or pick up in stores • Dedicated sh
Slide 18: Real Estate
REAL ESTATE
Slide 19: Key Metrics
Key Metrics * 222,000 sq m (1) About NIS 206 79 assets (1) NIS 3.4 billion Real estate book-value Yielding areas (excluding parking lots) million Amount of assets The company’s income (1) 160,000 sq m NIS 118 million NIS 172 million Available building rights FFO EBITDA (gross area including parking
Slide 20: Main Areas of Activity and National Deployment
Main Areas of Activity Nahariya and National Akko Carmiel Maalot Deployment Kiryat Motzkin Haifa Wide Tirat HaCarmel Nazareth Illit Tiberias geographical and sectoral dispersal Pardes Hanna Kadima Zoran Hefer Valley Tzur Yigal Netanya Income Distribution 12% Ramat Hasharon Kfar Saba Petah Tikva Hod
Slide 21: Shufersal Real Estate
Shufersal Real Estate Improving group’s financial profile Real estate enhancement Key Financials (NIS M) Real estate value in NIS billion* Consistent revenue and profit stream* 3.4 206 2.7 177 182 182 184 179 2.4 2.5 2.6 150 156 158 159 Revenues NOI 21 *Excluding “Lev HaMifratz ”. ” ”Lev HaMifratz”
Slide 22: Financials
FINANCIALS 2 ( > BD Lu ——__— SHUFERSAL
Slide 23: Financial Performance
Financial Performance Revenue (NIS M) Operating Profit(1) (NIS M) 15,233 718 726 14,765 14,662 521 394 13,360 4.7% 4.9% 3.9% 2.7% EBITDA(2) (NIS M) Net Income (NIS M) 1,514 1,559 387 393 1,266 1,294 268 9.9% 10.6% 9.5% 8.8% 2.5% 2.7% (3) 2.0% 2 0% (3) (1) Before other income & expenses. 23 (2) Opera
Slide 24: Financial Performance- Q4
Financial Performance- Q4 Revenue (NIS M) Operating Profit(1) (NIS M) 3,649 3,613 159 116 3,339 70 3.5% 4.4% 1.9% Q4.2019 Q4.2021 Q4.2022 Q4.2019 Q4.2021 Q4.2022 EBITDA(2) (NIS M) Net Income (NIS M) 322 375 300 117 100 9.6% 10.4% 8.2% 3.5% 2.8% (3) 3 0.1% Q4.2019 Q4.2021 Q4.2022 Q4.2019 Q4.2021 Q4.2
Slide 25: Segments
Segments Retail Real Estate Be 1,045 13,757 966 12,603 13,558 206 182 184 708 +9.2% +36.4% +8.2% Revenue +12% +1.1% (NIS M) 2 172 525 150 154 -3 Operating 403 Profit(1) + . % (NIS M) +30.3% 172 +2.7% -76 25 (1) Before other income & expenses.
Slide 26: Exceptional Liquidity and Balanced Debt Profile
Exceptional Liquidity and Balanced Debt Profile Future Bond Repayments(1) (NIS in millions) 1-12.2022 (NIS M) 411 413 432 379 367 372 Non CPI Linked Bonds 1,600 305 CPI Linked Bonds 885 Total Debt * 2,485 176 Cash & ST Investments (721) Net Debt 1,764 • Well staggered debt maturity profile • ilAA de
Slide 27: Debt Levels that support the company's strategy
Debt Levels that support the company's strategy (NIS B) Net Debt Gross debt 3.0 2.9 2.6 2.7 2.6 2.1 1.9 1.4 Net Debt* Gross debt* Note: excluding IFRS-16 liability Liabilities to banking corporations, debentures, including interest payable 27 Excluding cash and cash equivalents, short term deposits
Slide 28: Appendix
Appendix ——__— SHUFERSAL
Slide 29: Consolidated Income Statement
Consolidated Income Statement )1( (NISmn) 2019 2020 2021 2022 Revenues 13,360 15,233 14,765 14,662 growth (%) 4.0% 14.0% -3.1% -0.7% Gross Profit 3,609 4,043 4,021 3,882 margin (%) 27.0% 26.5% 27.2% 26.5% Operating expenses (3,088) (3,325) (3,295) (3,488) Operating Profit 521 718 726 394 margin (%)
Slide 30: Balance sheet (assets)
Balance sheet (assets) (NISmn) 2019 2021 2022 Cash and cash equivalents, Short-term deposits 355 1,286 721 Trade receivables 1,373 1,441 1,467 Other receivables & Other investments 169 175 170 Inventory 910 914 928 Total Current Assets 2,807 3,816 3,286 Long-term deposits - 0 - Investments in associ
Slide 31: Balance sheet (liabilities and equity)
Balance sheet (liabilities and equity) (NISmn) 2019 2021 2022 Current liabilities Current maturities in respect of bonds & Credit 360 302 316 from banks Current maturities of lease liabilities 342 392 416 Trade payables 2,008 2,177 2,248 Liability in respect of option to acquire partnership 73 - - O
Slide 32: Thank You
THANK YOU