Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — H1 2021 Earnings Presentation
47 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 29, 2021
Slide 1: 2021 Half-year Results
2021 Half-year Results - 29 July 2021
Slide 2: Key figures: First-half net sales, EBITDA and trading profit
Key figures First-half net sales, EBITDA and trading profit Change In €m H1 2020 H1 2021 Change at CER Net sales – Group 16,140 14,480 -10% -0.5%1 o/w France (incl. Cdiscount) 8,739 7,810 -11% -7.2%1 o/w Latam 7,401 6,670 -10% +6.9%1 EBITDA – Group 1,063 1,0992 +3% +11% o/w France (incl. Cdiscount)
Slide 3: Key figures: First-half cash generation and debt
Key figures First-half cash generation and debt In €m H1 2020 H1 2021 Change Free cash flow excl. disposals – Group (885) (1,021) -136 o/w France (incl. Cdiscount, excl. GreenYellow) (297) (346) -50 o/w Latam (629) (615) +14 Gross debt – Group 8,554 8,477 -77 o/w France (incl. Cdiscount) 5,542 5,105
Slide 4: France highlights
France highlights Further increase in profitability for the retail banners » Further increase in profitability of retail banners1, with trading margin up +81 bps to 2.1%2 and 353 stores opened in convenience formats, laying the foundation for a strong return to growth in H2 › France Retail net sales
Slide 5: Latin America highlights
Latin America highlights Growth in H1 trading profit of +33% at constant exchange rates, successful spin-off of Assaí » Improved profitability with H1 EBITDA up +21% at constant exchange rates and trading profit up +33% at constant exchange rates › Increase of +96 bps in EBITDA margin and +84 bps in
Slide 6: Development areas in France
Development areas in France 1. Retail banners 2. Non-food E-commerce (Cdiscount) 3. New businesses (RelevanC and GreenYellow) 4. CSR 6
Slide 7: Development areas - France: Retail banners (1/2)
Development areas - France 1. Retail banners (1/2): increased profitability and progress in priority areas of expansion and E-commerce » Strong improvement in profitability for all retail banners1 of +81 bps to 2.1% › Growth in trading profit of +50%1 (+€49m) thanks to the business model transformat
Slide 8: Development areas - France: Retail banners (2/2)
Development areas - France 1. Retail banners (2/2): further commercial innovation in line with new consumer expectations » Monoprix has expanded its range of services › Santé Au Quotidien spaces, concepts dedicated to health and well-being (sleep, relaxation, ageing, maternity, etc.) with personalis
Slide 9: Development areas - France: Cdiscount
Development areas - France 2. Cdiscount: ongoing development of the marketplace, digital marketing and Octopia » Increase in the marketplace of +10% in H1 (+33% over two years) to reach 46% GMV share › Further increase in marketplace revenues, up +17% in the first half (+39% over two years) to reach
Slide 10: Development areas - France: Acceleration for RelevanC
Development areas - France 3. Acceleration for RelevanC » Continued acceleration with growth in net sales of +32% in Q2 » Signing of commercial and technological partnerships › Partnership with Google Cloud and Accenture to step up the development and commercialisation of RelevanC solutions › Alloca
Slide 11: Development areas - France: Acceleration for GreenYellow
Development areas - France 3. Acceleration for GreenYellow: increase in photovoltaic pipeline of +85% » Increase in photovoltaic advanced pipeline of +85% and energy efficiency advanced pipeline of +78% versus June 2020 › Photovoltaic advanced pipeline of 809 MWp (+85% vs. June 2020), with an additi
Slide 12: Development areas - France: Reinforcement of CSR commitments
Development areas - France 4. Reinforcement of the Group's CSR commitments » Commitment to a 38% reduction in carbon emissions by 20301 › Reinforcement of the commitment made in 2018 of an 18% reduction between 2015 and 20251, validated by the Science Based Targets initiative › The Group is taking a
Slide 13: Financial results
Financial results 13
Slide 14: Preliminary comments
Preliminary comments » IFRS 5 › Leader Price, which was sold on 30 November 2020, is presented as a discontinued operation in 2020 and 2021 › The gradual conversion of the stores sold to Aldi is expected to be completed by 30 September 2021 (approximately 400 stores converted at the end of July) » I
Slide 15: Key figures: Growth in trading profit at constant exchange rates
Key figures Growth in trading profit of +23.5% at constant exchange rates Reported Change at In €m H1 2020 H1 2021 change CER Net sales 16,140 14,480 -10.3% -0.5%1 EBITDA 1,063 1,099 +3.3% +11.1% Trading profit 399 444 +11.4% +23.5% Trading profit 399 438 +9.8% +22.0% excl. tax credits Underlying ne
Slide 16: Q2 net sales – Group
Q2 net sales – Group Net sales lower than in Q2 2020, reflecting an exceptionally high basis of comparison Q2 2021 Same- Same-store Reported Organic Net sales, in €m Net sales store change2 change change1 change2 over two years France Retail 3,475 -11.0% -8.9% -8.4% -2.9% Cdiscount 464 -7.0% -8.3% -
Slide 17: Q2 net sales – France
Q2 net sales – France Change in net sales reflecting a high basis of comparison in Q2 2020 and tougher health restrictions in Q2 2021 Q2 2021 Q1 2021 Same-store Same-store Net Reported Organic Same-store Same-store Net sales, in €m change2 change2 sales growth change1 change2 change2 over two years
Slide 18: Net sales last 4 weeks - France
Net sales last 4 weeks - France Pronounced inflection in net sales at the beginning of July Same-store change1 Last 4 weeks Net sales, in m€ Q2 2021 Change 25 July 2021 Monoprix -4.9% -1.2% +3.7 pts Supermarchés -10.4% -5.4% +5.0 pts Franprix -12.5% -4.4% +8.1 pts Proximité -11.2% +2.6% +13.8 pts Hy
Slide 19: Results – France including Cdiscount
Results – France including Cdiscount Increase in trading margin of +39 bps to 2.2% In €m – France incl. Cdiscount H1 2020 H1 2021 Change Net sales 8,739 7,810 -6.3%1 EBITDA 604 622 +2.9% EBITDA margin (%) 6.9% 8.0% +105 bps EBITDA after lease payments 287 296 +3.2% EBITDA margin (%) 3.3% 3.8% +51 bp
Slide 20: Results – France Retail
Results – France Retail Increase in trading profit for the retail banners of +50% In €m – France Retail H1 2020 H1 2021 Change Net sales 7,791 6,863 -7.3%1 EBITDA Retail banners2 501 543 +8.5% EBITDA margin (%) 6.8% 7.9% +115 bps Vindémia 22 - n.m. Property development 4 3 -40.7% GreenYellow3 34 28
Slide 21: Results – E-commerce (Cdiscount)
Results – E-commerce (Cdiscount) Growth in first-half EBITDA of +13% In €m – E-commerce (Cdiscount) H1 2020 H1 2021 Change Gross merchandise volume (GMV) 1,946 1,991 +2.3% o/w marketplace 676 747 +10.5% Net sales 948 947 - EBITDA1 43 48 +12.6% EBITDA margin (%) 4.5% 5.1% +58 bps Trading profit1 6 7
Slide 22: Results – Latin America
Results – Latin America Strong increase in profitability In €m H1 2020 H1 2021 Change Change at CER Consolidated net sales 7,401 6,670 -9.9% +6.9%1 o/w Assaí 2,958 3,007 +1.7% +21.6%2 o/w Multivarejo 2,586 2,014 -22.1% -6.4%2 o/w Grupo Éxito 1,848 1,648 -10.8% -3.6%2 EBITDA excl. tax credits 459 471
Slide 23: Underlying net profit, Group share
Underlying net profit, Group share Improvement of +€23m in first half Underlying net profit, Group share In €m H1 2020 H1 2021 Trading profit and share of profit of equity-accounted investees 414 474 Financial expenses (404) (398) Income taxes (50) (55) Underlying net profit (loss) from continuing o
Slide 24: Net profit (loss), Group share
Net profit (loss), Group share Improvement of +€306m in first half In €m H1 2020 restated H1 2021 Trading profit 399 444 Other operating income and expenses (246) 11 Operating profit 153 455 Net finance costs (188) (224) Other financial income and expenses (291) (175) Income taxes 15 (46) Share of p
Slide 25: Asset disposal plan
Asset disposal plan Total asset disposals of €3.1bn Cumulative disposal Date Sold assets proceeds €213m: 15% of Mercialys’ share capital €742m: Monoprix real estate assets 2018 €1.1bn €150m: GreenYellow capital increase R2C €392m: sales to Fortress 2019 €1.8bn €327m: sales to Apollo ~€20m: 20 “A
Slide 26: Change in net debt
Change in net debt Improvement in net debt before IFRS 5 for the France Retail scope Net debt Change before IFRS 5 over the H1 2020 H1 2021 In €m period France (4,620) +43 (4,577) o/w France Retail excl. GY (4,415) +210 (4,205) o/w E-commerce (Cdiscount) (376) -52 (428) o/w GreenYellow 171 -115 57 L
Slide 27: Free cash flow – France scope excluding GreenYellow
Free cash flow – France scope excluding GreenYellow Cash flow from continuing operations up +51% In €m – continuing operations France (incl. Cdiscount), excl. GreenYellow H1 2020 H1 2021 Change EBITDA 570 594 +24 (-) lease payments1 (320) (325) -5 EBITDA after lease payments 250 269 +19 (-) non-recu
Slide 28: Net debt – France scope excluding GreenYellow
Net debt – France scope excluding GreenYellow Net debt before IFRS 5 in line with the seasonality of operations In €m – France + Cdiscount (excl. GreenYellow) H1 2020 H1 2021 France: net debt before IFRS 5 at 1 January (4,222) (3,873) Free cash flow1 (297) (346) before asset disposals and disposal p
Slide 29: Bond debt – France
Bond debt – France Normalisation of bond schedule Maturities of bond debt in France at 30 June 2021: €4.8bn1 In €m Unsecured Secured 1000 800 611 508 525 314 370 400 271 Jun 2022 Jan 2023 Jan 2024 Mar 2024 Feb 2025 Aug 2025 Jan 2026 Aug 2026 Apr 2027 » Redemption of the bond maturing in May 2021 (€1
Slide 30: Liquidity position at 30 June 2021 – France
Liquidity position at 30 June 2021 – France The Group had €2.6bn in cash and cash equivalents at 30 June 2021 €2.6bn liquidity position » At 30 June 2021, the Group had: at 30 June 2021 › Cash and cash equivalents of €528m1 €2,032m › €339m held in a segregated account dedicated to the repayment of d
Slide 31: Liquidity position in July 2021 – France
Liquidity position in July 2021 – France The Group extended the term of the RCF facility maturing in October 2023 to July 2026 and improved the financial conditions » Extension and improvement in financial conditions of the main syndicated credit line, originally set to mature in October 2023 › Exte
Slide 32: Financial covenants – France
Financial covenants – France At 30 June 2021, the Group complied with the RCF covenant, with headroom of €359m 3,2x 3,5x EBITDA headroom: 2,5x EBITDA headroom: €359m 2,1x €199m Secured gross debt/ Limit EBITDA after lease Threshold EBITDA after lease payments/financial payments 1 expenses » At 30 Ju
Slide 33: Outlook – France
Outlook Outlook – France With very satisfactory levels of profitability in all formats, priority focus on growth via the expansion of the store base and acceleration in E-commerce Opening of 400 convenience stores in H2 (Franprix, Vival, Naturalia, etc.), bringing the total to 750 openings over the
Slide 34: Appendices
Appendices
Slide 35: ESG ratings
Appendices ESG ratings Indices Rating Scale Dow Jones Sustainability Index 70/100 0 to 100 FTSE4Good Global/Europe Index 3.9/5 Index member 0 to 5 CDP Climate Scoring B D- to A ranked 8th Vigeo Eiris 72/100 0 to 100 worldwide Sustainalytics 72/100 0 to 100 MSCI AA CCC to AAA Gaia 74/100 0 to 100 TCF
Slide 36: Non-recurring expenses
Appendices Non-recurring expenses Other operating income and expenses In €m H1 2020 H1 2021 Change Group (246) 11 +257 o/w Latam (18) (34) -17 o/w France (France Retail + E-commerce) (228) 45 +273 Cash costs (excl. asset disposal plan and GreenYellow) (107) (76) +30 o/w transformation plan - (22) -2
Slide 37: Underlying net financial expense
Appendices Underlying net financial expense H1 2020 restated H1 2021 Interest Total net Interest Total net Net financial expense financial Net financial expense financial In €m expense Lease liabilities expense expense Lease liabilities expense France Retail (144) (78) (221) (184) (75) (259) E-comme
Slide 38: Reconciliation of reported net profit to underlying net profit
Appendices Reconciliation of reported net profit to underlying net profit (continuing operations) H1 2020 H1 2020 restated H1 2021 In €m restated Adjustments underlying H1 2021 Adjustments underlying Trading profit 399 0 399 444 0 444 Other operating income and (246) 246 0 11 (11) 0 expenses Operati
Slide 39: Underlying non-controlling interests
Appendices Underlying non-controlling interests In €m H1 2020 restated H1 2021 France Retail 9 5 Latam Retail 49 92 o/w Grupo Éxito 25 30 o/w GPA and Assaí 24 62 E-commerce (Cdiscount) (4) (4) Total 55 93 2021 Half-year Results / Thursday, 29 July 2021 39
Slide 40: Consolidated net profit (loss)
Appendices Consolidated net profit (loss) In €m H1 2020 restated H1 2021 Net profit (loss) before taxes (325) 57 Income taxes 15 (46) Equity-accounted investees 15 29 Net profit (loss) from continuing operations (295) 41 o/w Group share (340) (35) o/w attributable to non-controlling interests 45 76
Slide 41: Share of profit of equity-accounted investees
Appendices Share of profit of equity-accounted investees In €m H1 2020 restated H1 2021 France Retail 13 19 o/w Mercialys 14 11 o/w Franprix (0) 0 o/w Other (0) 8 Latam Retail 2 10 Total 15 29 2021 Half-year Results / Thursday, 29 July 2021 41
Slide 42: Group free cash flow – Continuing operations
Appendices Group free cash flow – Continuing operations In €m H1 2020 restated H1 2021 EBITDA 1,063 1,099 (-) lease payments (471) (471) (-) non-recurring items (159) (121) (-) other items (head office expenses, (60) (33) dividends on equity-accounted investees) Operating cash flow after lease payme
Slide 43: Breakdown of consolidated net debt after IFRS 5 at 30 June 2021
Appendices Breakdown of consolidated net debt after IFRS 5 at 30 June 2021 Cash and cash IFRS 5 Net debt In €m Gross debt equivalents impact after IFRS 5 France Retail (4,654) 506 797 (3,352) E-commerce (Cdiscount) (450) 22 0 (428) Sub-total France (5,105) 528 797 (3,780) Latam Retail (3,372) 1,605
Slide 44: Net debt
Appendices Net debt H1 2021 Net debt Net debt Net debt IFRS 5 In €m before IFRS 5 after IFRS 5 France (4,577) 797 (3,780) o/w France Retail excl. GY (4,205) 797 (3,408) o/w E-commerce (Cdiscount) (428) 0 (428) o/w GreenYellow 57 0 57 Latam Retail (1,767) 65 (1,702) o/w GPA (Multivarejo) (780) 33 (74
Slide 45: Balance sheet
Appendices Balance sheet June 2020 June 2021 In €m restated Goodwill 6,656 6,764 Property, plant and equipment, intangible assets and investment property 6,767 7,007 Right-of-use assets 4,888 4,862 Investments in equity-accounted investees 191 214 Deferred tax assets 1,035 1,111 Other non-current as
Slide 46: Puts included in the balance sheet
Appendices Puts included in the balance sheet % Value at Value at Exercise In €m capital 31/12/2020 30/06/2021 period Majority-held Franprix 34 42 Various dates franchised stores Monoprix 3 3 Various dates Casino Participations France 26 26 Various dates Cnova NCI puts 1 1 2022 Uruguay (Disco) 100 1
Slide 47: Disclaimer
Appendices Disclaimer This presentation contains forward-looking information and statements about Casino. Forward-looking statements are statements that are not historical facts. These statements include financial forecasts and estimates and their underlying assumptions, statements regarding plans,
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