DIA — IPO Roadshow (October 2019)
26 slides from DIA's IPO roadshow presentation, October 2019
Slide 1: Roadshow Presentation
Roadshow Presentation October 2019 1
Slide 2: Disclaimer
Disclaimer This document does not constitute a purchase, sale or exchange of securities invitation or offer, nor does it constitute advice on any securities issued by DIA. Please read the following before continuing. The following applies to this document, the oral presentation of the information in
Slide 3: Summary
Summary Key Investment highlights Company overview Recent financial and operational developments Transformation pillars The Capital Increase 3
Slide 4: Key investment highlights
01 Key investment highlights
Slide 5: Key investment highlights
Key investment highlights 1 Leading proximity player with broad store network and high capillarity in urban areas 2 Best-in-class management team with extensive know-how 3 Committed shareholder with a long-term vision 4 Sustainable and long-term dated capital structure 5 Wide franchisee network with
Slide 6: Company overview
02 Company overview
Slide 7: Industry leading experience with proven track-record of transformation
Industry leading experience with proven track-record of transformation Karl-Heinz Holland Prior experience: • CEO of Lidl for 6 years (2018-2014) and CCO of Lidl previous 6 CEO years May 2019 • Proprietary Director of DIA (Apr 2018-Dec 2018) Prior experience: Enrique Weickert • CFO of OHL (8 years)
Slide 8: DIA Group at a glance
DIA Group at a glance #1 Spanish proximity network 2.1x larger than #2 competitor 2 Deep potential in private label Geographically diversified footprint 43%private label penetration at Group level 1 Presence in Spain, Portugal, Argentina and Brazil Large customer base € EUR7.3Bn in net sales 22 mill
Slide 9: Our fundamental strengths
Our fundamental strengths Customer proximity and Private label Leadership capillarity …best-in-class team onboard with A leading distribution network of over 6,800 stores…. …value-for-money uplift proven experience in retail… potential… Big Data capabilities Differential model Multinational footprin
Slide 10: Recent financial and operational developments
03 Recent financial and operational developments
Slide 11: What led to deterioration of performance and “perfect storm”?
What led to deterioration of performance and “perfect storm”? 2016 – Q3 2018 Q4 2018 Short-sighted / unsustainable / profit-at-any-cost management decisions Profit warnings Loss of customer centricity and value-for-money attractiveness Financial restatements Loss of quality in fresh offering and pri
Slide 12: Top priority initiatives taken in 2019 towards stabilizing and repositioning the business
Top priority initiatives taken in 2019 towards stabilizing and repositioning the business... Insolvency threat Non-profitable stores Internal control & liquidity constraints & business complexity deficiencies Financial viability uncertainty affecting credit insurance and supplier relationships: Oper
Slide 13: Transformation pillars
04 Transformation pillars
Slide 14: Six-Pillar Transformation Plan
Six-Pillar Transformation Plan Recruit New • New leadership team to steer DIA to the next level 1 Leadership & Talent • Attract and develop talent with modern retail expertise and secure uncompromising leadership attitude • Improve sales densities (€/sqm) and traffic • Active management of store loc
Slide 15: Six-Pillar Transformation Plan
Six-Pillar Transformation Plan • Implement value-for-money price strategy Reset • Use promotion to drive traffic 4 Pricing & Promotions • Reinvent loyalty beyond coupon pricing • Reduce and repurpose promotions to improve price perception • Develop DIA’s talent Retail • Efficient organisation and ma
Slide 16: Top priorities for the next 12-18 months
Top priorities for the next 12-18 months • Assortment streamlined • Improve fresh offer COMMERCIAL • Reinvention of private label: PROPOSITION ➢ Quality ➢ Packaging look & feel • Regain customer trust by resetting pricing as well as promotion policy • Improve negotiation with suppliers (new pricing,
Slide 17: The Capital Increase
05 The Capital Increase
Slide 18: A sustainable and long-term dated Capital Structure
A sustainable and long-term dated Capital Structure • As of July 2019, DIA signed the refinancing agreement with its syndicated lenders for €973m of which €902 correspond to pre-existing financed arrangements and €71m corresponds to a new super senior supplier tranche, and secured an additional € 20
Slide 19: Capital Increase
Capital Increase Tranche 1 Tranche 2 • LetterOne stake: 69.759% Non Preferential Rights Preferential Rights • Free float: 30.241% (of which 0.199% treasury shares) €418,555,000 €186,997,247 • Issue Price: €0.1 per share (€0.01 face value + €0.09 share premium) Subscribed only by LetterOne 10 rights
Slide 20: Timeline of Capital Increase
Timeline of Capital Increase Discretionary allocation period (if applicable) Additional allocation Admission to listing Listing of the (if applicable) new shares EGM Preferential subscription period and period to of the new shares request new shares 22 Oct 30 Oct 13 Nov 21 Nov 21 / 22 Nov 29 Nov 2 D
Slide 21: Thank you for your attention!
Thank you for your attention!
Slide 22: Appendix
Appendix
Slide 23: Our global reach
Our global reach Key metrics Spain 59% Portugal 9% Brazil 16% Argentina 16% DIA GROUP Market rank 1 #3 Market rank 1 #6 Market rank 1 #6/7 Market rank 1 #3 Market share (as of June 2019) 6.6% Market share (as of Dec 2018) 5.3% Market share (as of Dec 2018) 3.3% Market share (as of Dec 2018) 15.0% St
Slide 24: International footprint
International footprint Spain Brazil DIA SBD Super Muffato Mercadona 4% 4% 4% 26.1% Cencosud Others 5% Casino 32% 44.6% Carrefour Makro 8.7% 8% Carrefour 8% Walmart 20% DIA Discount 6.6% 7% Convenience Auchan 0% Hypermarkets 32% group Eroski Lidl 3.5% 4.9% 5.6% Supermarkets 34% Cash & Carry 26% Sour
Slide 25: International footprint
International footprint Portugal Argentina Makro Casino Other Walmart 5% 3% Continente Carrefour DIA 5% 22% 24% 5% 24% • Health and Beauty proximity format La Anónima 12% operating more than 1,200 stores in Pingo Doce Cencosud Coto 21% 22% Les Mousquetaires Lidl 14% Spain and Portugal 10% DIA 7% Auc
Slide 26: Business case – X5 Retail Group
Business case – X5 Retail Group 40 X5 Retail is the #2 food retailer in Russia with >15k stores and 3 brands: 30 • Perekrestok: supermarket, founded in 1995 by Alfa Group (LetterOne) 20 • Pyaterochka: proximity, founded in 1999 10 • Karusel: hypermarkets, acquired in 2008 0 X5 History in a snapshot: