Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Debt Investor Presentation (December 2020)
40 slides from Casino, Guichard-perrachon Sa's debt investor presentation, Dec 14, 2020
Slide 1: Lender Presentation December 2020
LENDER PRESENTATION December 2020 Lender presentation ▪ December 2020 ▪ 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Casino, Guichard-Perrachon S.A. (“Casino”) solely for information purposes. No representation and no liability: The presentation is given for information purposes only and should not be considered as a recommendation that you enter into the transacti
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Indicative terms only; no recommendation: The sole purpose of this presentation is to provide background information to assist prospective lenders in obtaining a general understanding of the business and the outlook of the Companies. This presentation contains only summary inform
Slide 4: Transaction overview
Transaction overview Introduction Lender presentation ▪ December 2020 ▪ 4
Slide 5: Strategic refinancing & liability management exercise
Strategic refinancing & liability management exercise… Comprehensive refinancing and liability management exercise aimed at Paying down debt to reduce outstanding EMTNs Aim Securing RCF maturity to Oct-23 by meeting springing maturity condition Extending pro forma debt maturity Taking adva
Slide 6: To further improve Casino's capital structure
… to further improve Casino’s capital structure Segregated account and Leader Price proceeds New debt proceeds allocated to medium-term allocated to near-term EMTNs buy-back EMTNs buy-back In €m 2,879 200 1000 808 300 735 800 879 356 534 444 508 322 Segregated Account, 2021 2022 2023 Jan Mar-24 2025
Slide 7: Transaction overview
Transaction overview Sources and Uses Sources Amount (€m) Uses Amount (€m) Incremental Term Loan B 200 Tender offer on EMTN bonds 1,229 New Senior Unsecured Debt 300 Transaction fees and expenses 6 Cash from Segregated Account and Leader Price disposal proceeds 735 Total sources 1,235 Total uses 1,2
Slide 8: Pro forma financing structure
Pro forma financing structure Legend France Retail & E-Commerce as per RCF covenant definition Free Float Rallye Latam Economic right % 48% 52% Restricted Group New €300m Senior Existing Unsecured Unsecured Debt EMTN programme Existing Casino Guichard- €2bn RCF Perrachon (CGP) Existing Term Loan B O
Slide 9: Term Loan B add-on – Indicative terms
Term Loan B add-on – Indicative terms Term Loan B Borrower Casino Guichard-Perrachon Guarantors Guarantees: Distribution Casino France; Casino Finance; Monoprix; Segisor Amount €200m Currency EUR Maturity 31 January 2024 Margin (subject to ratchet provisions) E+550bps Floor 0.0% Repaym
Slide 10: Indicative timetable for Term Loan B add-on
Indicative timetable for Term Loan B add-on December M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Key date Event 9th December Deal launch 9th December Lender meeting 16th December Allocation & Pricing 22nd December Funding Lender presentation ▪ De
Slide 11: Company overview
Company overview Introduction Lender presentation ▪ December 2020 ▪ 11
Slide 12: Casino at a glance
Casino at a glance Key business highlights Multi-format, multi-banner and multi-channel retailer Omni-channel offering Over 120 years of history Traditional food retail Primary focus on France and Latin America food retail E-commerce food retail Also developing innovative and attractive
Slide 13: A leader in French and Latam food retail, with high-growth e-commerce
A leader in French and Latam food retail, with high- growth e-commerce operations France Retail Latin America E-commerce Food retail and food e-commerce Brazil food retail Cdiscount Leading French food retail player, operating €1.2bn4 stake in Brazil’s listed leader Leading non-food 7,564 stor
Slide 14: Highly experienced top and divisional management
Highly experienced top and divisional management Highly experienced Group management… Jean-Charles Naouri Julien Lagubeau David Lubek Arnaud Strasser Franck-Philippe Georgin Chairman and CEO Deputy CEO CFO Executive Director, Corporate General Secretary Development and Holdings … and deep bench of t
Slide 15: Key credit strengths
Key credit strengths Lender presentation ▪ December 2020 ▪ 15
Slide 16: Key credit strengths
Key credit strengths Leading position in the French food retail market through structurally well-positioned 1 formats, attractive consumer offering, and digitalisation 2 Best-in-class food and non-food E-commerce platform 3 Track-record of growth and value creation from new businesses 4 High-growth
Slide 17: Leading market position with exposure to dynamic regions
1 Leading market position with exposure to dynamic regions in attractive food retail format Leading food retailer in France with 69% of sales generated in the fastest growing regions in France 7,564 stores1 within a diversified portfolio of 11 Île-de-France, Rhône-Alpes, Côte d’Azur complementar
Slide 18: Strategic focus on a portfolio of buoyant formats and banners
1 Strategic focus on a portfolio of buoyant formats and banners Strategic repositioning on premium & convenience formats and organic products #2 in Convenience in France with increasing sales contribution France Retail % net sales by format Convenience & premium store Strong network of premium and
Slide 19: Acceleration of digitalisation across all banners
1 Acceleration of digitalisation across all banners Continued digitalisation roll-out across all banners accelerated in a Covid-19 environment Increased autonomous stores… Progress in use of digital solutions… +172 autonomous stores Le 4 Casino, 1st 24/7 store in France 477 “CasinoMax Extra”2 –
Slide 20: Best-in-class food e-commerce platform
2 Best-in-class food e-commerce platform Disruptive grocery delivery partnerships reaping the benefit of increasing in-home consumption Strategic partnership between Monoprix, Strategic partnership with Ocado and Casino Monoprix Profitable food e-commerce model with lower The first and only part
Slide 21: National champion in non-food e-commerce
2 National champion in non-food e-commerce with attractive growth levers – 2nd largest e-commerce player in France 23.4m1 monthly unique website visitors Top 10 internet retailing company shares as % value (2019)2 LTM Jun-20 GMV above €4bn, up 4.9% vs. 2019 22.2% 8.1% Capitalizing on adjacent
Slide 22: Track-record of growth from new businesses (GreenYellow)
3 Track-record of strong growth and value creation from new businesses Capitalising on the Group energy management experience and the green energy momentum Leading player in photovoltaic auto-consumption and energy savings Strong increase in pipeline Leading solar power producer in South East As
Slide 23: Track-record of growth from new businesses (data)
3 Track-record of strong growth and value creation from new businesses Leveraging our customer data to create additional value #5 Advertising platform1 New player in the Data Center market with 26,0002 computing cores Monetization of the data of the Group Computing capacity made available du
Slide 24: Continuous simplification of our Latam assets
4 Continuous simplification of our Latam assets to increase strategic focus and enhance valuation Assai spin-off expected to allow greater agility The transaction will enable Assaí, on the one hand, and GPA and Éxito, on Group’s Latam structure the other, to focus on their respective business mode
Slide 25: Leading the way in ESG
5 Leading the way in ESG A long-lasting commitment to responsible consumption #1 European retailer for its CSR policy and commitments by Vigeo Eiris1 Only retailer in the Wall Street Journal top 100 World Most Sustainably Managed Companies Top score obtained from leading ESG agencies… ESG scores
Slide 26: Demonstrated ability to deliver on the disposals asset plan
6 Demonstrated ability to deliver on the disposals asset plan Disposals summary Disposal plan Cumulated amount achieved Timeline Assets sale amount within each plan Thailand and Vietnam €4.0bn 2016 €4.0bn Strong capital gains Non-core assets €213m from 15% stake of Mercialys 2018 €1.1bn
Slide 27: Valuable asset base
6 Valuable asset base % Store network as Assets LTM Sep-20 metrics interest of 30 Sep-20 Hypermarkets (o/w Géant) 100% 105 Sales: €4.0bn (o/w €3.8bn for Géant9) Monoprix 100% 791 Sales: €4.5bn Franprix 100% 869 Sales: €1.6bn Supermarkets 100% 414 Sales: €3.1bn Convenience & other 100% 5,166 Sales: €
Slide 28: Initiatives to support free cash flow generation and deleveraging
6 Proven range of initiatives to further support free cash flow generation and deleveraging Several levers driving improvement in FCF and deleveraging in France Growth in Post IFRS 16 EBITDA (€m) and margin Rocade plan: disposal or closure of loss making (%) in France Retail + E-commerce Operating
Slide 29: Track-record of debt reduction and focus on de-leveraging in France
6 Track-record of debt reduction and strong focus on de-leveraging in France Reduction in gross debt providing ample headroom under RCF covenants Gross debt and GPA TRS and Forward evolution (in €bn) RCF covenants1,2 levels Targeted lowest 7.6 level in 20 years 6.8 7.75x 6.6 7.50x 6.3 7.25x 5.8 5.0
Slide 30: Casino's key strategy pillars
Casino’s key strategy pillars Accelerating leadership in convenience, organic and premium 1 Continued focus on profitability improvement and proactive deleveraging 6 2 Continue to strengthen our leadership in digital and omni-channel Progress our ESG initiatives 5 3 Accelerate development of new act
Slide 31: Historical financials and update on Q3 2020
Historical financials and update on Q3 2020 Lender Presentation ▪ December 2020 ▪ 31
Slide 32: Casino Group: Key figures consolidated
Casino Group: Key figures consolidated FY18 H1 2019 Change at In €m FY19 H1 2020 restated1 restated1 CER2 Consolidated net sales 34,329 34,645 16,842 16,140 +5.9% % organic growth - 4.2% - 9.4% - % same store growth - 2.2% - 8.4% - ow France Retail + Cdiscount 18,751 18,288 8,934 8,739 (2.2%) ow Lat
Slide 33: Historical financials: France Retail & Cdiscount
Historical financials: France Retail & Cdiscount H1 2019 In €m FY18 Restated FY19 % growth H1 2020 % growth restated Consolidated net sales 18,752 18,288 (2.5%) 8,934 8,739 (2.2%) o/w France Retail 16,786 16,322 +0.3%1 8,045 7,791 +6.0%1 o/w Cdiscount 1,965 1,966 +0.0% 889 948 +6.6% EBITDA 1,452 1,5
Slide 34: Free cash flow: France Retail – H1 2020
Free cash flow: France Retail – H1 2020 FY18 H1 2019 In €m FY19 H1 2020 restated restated EBITDA 1,413 1,467 601 564 (-) non-recurring items (excl. Rocade plan) (162) (209) (70) (58) (-) rent (512) (614) (296) (309) (-) other items1 (77) (109) (56) (71) Cash flow from continuing operations, incl. Re
Slide 35: Covid-19 impact: France Retail
Covid-19 impact: France Retail Casino was largely able to continue operations throughout the lockdown, as provider of necessary goods, and has benefited from increases in demand for certain essential goods during the period. In H1 2020 the Covid-19 health crisis had a strong positive impact on net
Slide 36: Historical financials: Latam
Historical financials: Latam FY18 Change at Change at In €m FY19 H1 2019 H1 2020 restated CER % CER % Consolidated net sales 15,577 16,358 +9.7% 7,908 7,401 +15.0% o/w GPA 11,416 12,290 +11.0% 5,914 5,544 +16.9% o/w Grupo Exito 4,153 4,053 +6.2% 1,988 1,848 +9.0% EBITDA 1,217 1,104 (5.7%) 508 459 +9
Slide 37: Update on Q3 2020
Update on Q3 2020 Growth Organic Same-store In €m Q3 2019 Q3 2020 incl. fuel, calendar & FX % growth %1 growth %1 Consolidated net sales 8,575 7,426 (13.4%) +6.2% +6.2% o/w France Retail 4,112 3,676 (10.6%) (2.6%) (0.2%) o/w Cdiscount 461 447 (3.0%) (3.0%) (3.0%) o/w Latam Retail 4,002 3,303 (17.5%)
Slide 38: Update on Financial Debt as of Q3 2020
Update on Financial Debt as of Q3 2020 France activites1 Latam1 30-Jun-20 30-Sep-20 30-Jun-20 30-Sep-20 In €m In €m Gross debt (5,776) (5,974) Gross debt (2,777) (2,535) Cash and cash equivalents 950 646 Cash and cash equivalents 1,258 1,094 IFRS 5 adjustment 1,422 n.a2 IFRS 5 adjustment 90 n.a2 Net
Slide 39: Current trading
Current trading 1 Based on our initial management estimates, our financial performance since September 30, 2020 has been in line with expectations and trends that could be observed during prior months 2 France Retail + Cdiscount performance: Expect the overall effect of the second lockdown (which
Slide 40: Conclusion
Conclusion Opportunistic trade with strong rationale Addressing RCF maturity Improving average debt maturity Pro forma for the transaction the Company’s outstanding remaining maturities until early 2024 will be largely covered Strong operational performance Good positioning in France with pr
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