Id Logistics Group · EURONEXT:IDL
Id Logistics — Investor Presentation (December 2014)
37 slides from Id Logistics's investor presentation, December 2014
Slide 1: General Presentation – December 2014
ID LOGISTICS GROUP GENERAL PRESENTATION – December 2014 1 – General presentation – April 2014
Slide 2: ID Logistics at a glance
ID Logistics at a glance Founded in Pure player Contractual 2001 Logistics 14 countries International 43% of revenues outside of France People NYSE Listed on the Paris stock market since 14.000 employees Euronext April 2012 Innovation Sustainability Dedicated experts Long term projects 2 – General p
Slide 3: Market overview, Business model, 2014 H1 results, Outlook
1. 2. Market overview Business model 3. 4. 2014 H1 results Outlook Q3 revenues 3 – General presentation – April 2014
Slide 4: Market overview
1. 2. Market overview Business model 3. 4. 2014 H1 results Outlook Q3 revenues 4 – General presentation – April 2014
Slide 5: What is contract logistics?
What is contract logistics? Long-term contract between an industrial or a retailer and a logistics contractor, to provide end- to-end specific solutions, which will ensure the optimization of its supply-chain management and cost control. 5 – General presentation General presentation – April 2014 – D
Slide 6: A compelling position in contract logistics
A compelling position in contract logistics Transport and logistics market Mail & parcel delivery Freight forwarding Land transport Contract logistics > Global market worth €200bn Multi-service global leaders including €9.5bn in France > 5% average Incumbent national players Integrated transport and
Slide 7: Prestigious and diversified customer base
Prestigious and diversified customer base RETAIL (30% of rev.) LUXURY GOODS (13% of rev.) INDUSTRY (30% of rev.) SPECIALISED RETAIL TEXTILES - FOOTWEAR (4% of rev.) E-COMMERCE (4% of rev.) (19% of rev.) 7 – General presentation General presentation – April 2014 – December 2014
Slide 8: A balanced international presence between emerging and mature countries
ID Logistics : a balanced international presence between emerging and mature countries Europe 8,000 empl. 2,570,000 sqm 2010 2013 2008 2008 South America 2003 Asia 2009 4,200 empl Africa & 1,000 empl. 650,000 sqm Indian Ocean 2001 105,000 sqm 300 empl. 65,000 sqm 2007 2002 2009 2012 55% of contracts
Slide 9: Strong corporate values
ID Logistics : strong corporate values DEMANDING Rigorousness, discipline and professionalism OPERATIONAL Absolute compliance with requirements and service EXCELLENCE levels ENTREPRENEURSHIP Dare, imagine and develop innovative solutions Reinforce solidarity between the group’s people and SOLIDARITY
Slide 10: Sustainable solutions
ID Logistics : sustainable solutions Carbon footprint Environment Carbon Disclosure Project Index (%) CO2 / pallet : 0.69 kg (-8% vs 2012) Waste recycling : 66% (+8% vs 2012) 90 81* 70 Use of resources : • Electricity : 4.0 kWh / pallet (-8% vs 2012) 50 • Water : 0.004 m3 / pallet (-33% vs 2012) 201
Slide 11: Stock market data
Stock market data Ownership structure Share price (€) and volume (December 15, 2014) Free float 33.2% ID Logistics managers 66.8% Capital Voting rights Eric Hémar 53.1% 70.1% Christophe Satin 7.4% 3.0% Others 6.3% 6.4% Managers 66.8% 79.5% 11 – General Generalpresentation presentation – April 2014 –
Slide 12: Business model
1. 2. Market overview Business model 3. 4. 2014 H1 results Outlook Q3 revenues 12 – General presentation – April 2014
Slide 13: A proven growth strategy: organic growth as a first priority
A proven growth strategy : organic growth as a first priority Four growth drivers fuelling each others Positive price/volume effect with 1 existing customers New contracts from existing 2 customers (incl. new country) New customers in existing 3 sectors (retail or manufacturing) 4 New customers in n
Slide 14: Positive momentum fuelled by organic growth
Positive momentum fuelled by organic growth Existing scope – Embedded growth – Long-term contracts offer good visibility Organic New contracts – Profitability: growth • Follows a J curve • Peaks at end of Year 2 = – Investment: Ongoing • CapEx at the beginning of the contract positive momentum New c
Slide 15: A resilient and efficient business model
A resilient and efficient business model Revenue: prices and volumes – Based on the volume of goods stored or handled – Main costs are linked to indices (real estate prices and inflation) – Fairly insensitive to the value of goods stored or handled Cost structure can adapt to changing volumes – Main
Slide 16: Growth strategy completed by selective acquisitions
A proven growth strategy, completed by selective acquisitions Strategic rationale : accelerate organic growth Acquiring a portfolio of new customers in new sectors and gaining new development opportunities Internalizing technical competencies Reinforcing geographical presence in countries with the c
Slide 17: CEPL – French specialist in highly automated solutions for unit picking
CEPL – French specialist in highly automated solutions for unit picking Key figures Geographical presence > Revenue of €180m > 27 sites > Operations in four countries > 2,200 staff > 600,000m² of warehousing facilities, of which 332,000m² owned Breakdown of revenue Main customers > French specialist
Slide 18: ID Logistics/CEPL – Convergence, complementarity, difference
ID Logistics/CEPL – Convergence, complementarity, difference > Convergence Pure player in contract logistics Long term contract Corporate culture > Complementarity Customer portfolio (only 1 client in common) International exposure Technical expertise in mechanization > Differences 50% of real estat
Slide 19: CEPL – A balanced financing of the acquisition
CEPL – A balanced financing of the acquisition The amount of the acquisition takes into account: – An equity value of €95.5m > The acquisition is funded by: – €75m in bank debt repayable – A net operational debt of €20.0m over 6 years primarily property leases – €4m in payments in new shares, i.e. 2
Slide 20: 2014 H1 results
1. 2. Market overview Business model 3. 4. 2014 H1 results Outlook Q3 revenues 20 – General presentation – April 2014
Slide 21: Continued strong revenue growth in first 9 months of 2014
Continued strong revenue growth in first 9 months of 2014 : +23.8% 700 € 517.0m € 640.0m France : €366.1m (+10.4% l-f-l) 600 • Contributions from business started up in 2013: Carrefour Sud-Est, Point + 12.3 % P, Panzani, Orangina/Schweppes 500 • New contracts won in 2014: H1 2014 43% Nespresso, Chlo
Slide 22: Business development in 2014: selection of new business
Business development in 2014 : selection of new business France International 54.000 sqm – domestic e-commerce Brazil – 4.000 sqm – start in 10/2014 activity – start in 3/2014 Poland – 13.000 sqm – start in 8/2014 14.000 sqm – worlwide distribution – start in 4/2014 China - 26.000 sqm to deliver 62
Slide 23: H1 2014: continued improvement in operating margin to 3.3%
H1 2014 : continued improvement in operating margin to 3.3% (up 0.6 point) % H1 2014 H1 2013 chg. Reported Pro forma (€ m) France Internat. Total France Internat. total total* Underlying op. 9.2 4.5 13.7 7.2 1.3 8.5 11.5 +61% income +0.6 As a % of revenues 3.8% 2.6% 3.3% 4.0% 1.0% 2.7% 2.9% points *
Slide 24: Net income of €4.8 million in H1 2014
Net income of €4.8 million in H1 2014 €13.7m (0.3) (0.8) Depreciation Costs rel. to customer upgrading of (3.7) relationships CEPL acquired (2.4) (1.6) Net (0.1) financial CVAE €4.8m income/ business Income tax €4.2m (exp.) tax Share in income of associates Underlying Net income Net income operating
Slide 25: Strong cash generation during the first half
Strong cash generation during the first half (€ m) H1 2014 H1 2013 Increase in cash from operating activities to €16.5 million Cash generated by operating activities 17.5 12.6 before WCR and capex Change in the WCR 7.3 (1.0) Improvement in the operating margin Tight WCR management Capex (8.3) (8.4)
Slide 26: Rapid decrease in net debt
Rapid decrease in net debt 30 June 2013 o/w addition of 30 June 2013 (€ m) 30 June 2014 31 Dec. 2013 pro forma* CEPL reported CEPL acquisition debt 62.5 75.0 75.0 75.0 - Real estate leases 47.4 50.5 53.6 27.1 26.5 Equipment leases 22.6 23.7 24.9 2.7 22.2 Other borrowings 3.6 4.0 5.1 - 5.1 Gross debt
Slide 27: Sound financial structure
Sound financial structure 30 June (€ m) 31 Dec. 2013 % chg. 2014 Goodwill 121.3 121.2 0.1 Other non-current assets 157.6 161.8 (4.2) Non-current assets 278.9 283.0 (4.1) (Negative) working capital (110.2) (105.5) (4.7) requirement Underlying net cash 62.5 66.6 (4.1) Gross debt 136.5 153.2 (16.7) Net
Slide 28: An investment capacity preserved
An investment capacity preserved Gearing ROCE before tax Leverage 150,0% 25,8% 2,6 21,8% 21,9% 94,1% 19,6% 78,1% 1,5 1,2 0,3 0,2 12,0% 10,5% FY S1 CEPL FY S1 FY 2012 S1 2013 S1 2013 FY 2013 S1 2014 FY 2012 S1 2013 FY 2013 S1 2014 2012 2013 acq. 2013 2014 proforma * proforma * proforma * *Pro forma i
Slide 29: Outlook
1. 2. Market overview Business model 3. 4. 2014 H1 results Outlook Q3 revenues 29 – General presentation – April 2014
Slide 30: Track record of growth
Track record of growth 2013-2014 : a RETAIL + SPECIALISED + INDUSTRY + SELECTIVE + E-COMMERCE RETAIL RETAIL turning point CAGR 735.1 Strong organic +20% 559.6 growth 43 % of rev. 462 outside France Strategic acquisition 386.2 39 299.8 309.8 35 New technical 34 expertise gained 27 31 % of rev. 57 65
Slide 31: ID Logistics, a Group moving forward
ID Logistics, a Group moving forward This track record and the business model should allow the Group to continue with organic growth on revenues higher than market – Support existing customers and prospects with their need for organisational adjustments in an uncertain world – Provide development ca
Slide 32: ID Logistics, a Group moving forward
ID Logistics, a Group moving forward To be in a position from 2015 – To expand internationally, including into new countries – To make further acquisitions 32 – General Generalpresentation presentation – April 2014 – December 2014
Slide 33: Appendix
1. 2. Market overview Business model 3. 4. 2014 H1 results Outlook Q3 revenues 33 – General presentation – April 2014
Slide 34: Management team
Management team Eric Hémar – Chairman and CEO Eric Hémar, 51, a former student of ENA, began his career at the Cour des comptes (French government Court of Auditors) before joining the French Equipment, Transport and Tourism Ministry in 1993, where he was technical advisor to minister Bernard Bosson
Slide 35: Historical consolidated P&L
Historical consolidated P&L (million €) 2013 2012 2011 Revenue 735,1 559.6 462.0 Purchases and external expenses (373,3) (284.8) (233.4) Personnel costs (299,3) (232.1) (193.8) Other income and expenses (11,8) (9.8) (5.9) EBITDA 50,7 6,9% 33.0 5.9% 28.9 6.3% Depreciation and amortisation (18,9) (14.
Slide 36: Historical consolidated cash flows
Historical consolidated cash flows (million €) 31 Dec. 2013 31 Dec. 2012 31 Dec. 2011 Cash flow from operating activities excl. WCR 41.3 22.4 25.5 Change in working capital 16.2 (1.0) 4.1 Cash flow from operating activities 57.5 21.4 29.6 Cash flow from investing activities (133.8) (22.0) (17.3) Net
Slide 37: Historical consolidated balance sheet
Historical consolidated balance sheet (million €) 31 Dec. 2013 31 Dec. 2012 31 Dec. 2011 Non-current assets 283.0 142.8 133.5 Trade receivables 131.5 94.9 80.9 Trade payables (110.2) (74.9) (63.4) Tax and social security liabilities (109.8) (78.7) (72.7) Net other receivables (payables / liabilities
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