Eurocash S.A. · GPW:EUR
Eurocash — FY2018 Earnings Presentation
19 slides from Eurocash's earnings presentation, 2019
Slide 1: 2018 Results Presentation
2018 Results Presentation
Slide 2: Executive Summary
Executive Summary 01 SMALL STORES WITH HIGH SALES INCREASE with sales dynamics at +6.5% in 2018 YoY 02 WHOLESALE 03 RETAIL STRONG GROWTH OF 6%IN 2018 INTEGRATION ONGOING, BUT LFL with EBITDA PLN +63m (+18%) STARTED TO IMPROVE with Delikatesy Centrum +2% in 4Q 2018 STRONG CASH GENERATION NET DEBT/EBI
Slide 3: Food market growth
Food market growth Small format stores accelerating their growth Food market growth by channel Food market growth in small format channels (FY 2018, YoY) (FY 2018, YoY) 9,3% FY 2017 FY 2018 13,5% 8,5% 12,2% 10,1% 6,5% 4,5% 5,0% 2,0% 2,3% 0,9% 0,8% 0,0% -0,6% -0,8% Discounters Hypermarkets Supermarke
Slide 4: Like for Like vs. inflation
Like for Like vs. inflation Small Format stores sales growth accelerated despite lower inflation than other segments Like for Like sales dynamics by chain Food inflation by product category (YoY, 2018) 2018 4Q 2018 Large format categories Small format categories 6,8% 6,4% 5,9% 12% 4,5% 4,3% 10% 3,2%
Slide 5: 2018 Eurocash financial summary
2018 Eurocash financial summary Sales increase by 10%, reported EBITDA by 70% (PLN +172m ), normalized EBITDA by 4% (PLN +13m) % of % of EBITDA CHANGE Y/Y SEGMENT PLN m 2017 2018 Sales Sales (2018,PLN m) (YoY PLN, m) Change 2017 2018 Net sales 20 713 22 833 10% Wholesale +410 +63 Gross profit 2 465
Slide 6: Wholesale Segment – strong growth in 2018
Wholesale Segment – strong growth in 2018 FY 2018: +956m sales and +63m EBITDA increase FY 2018 Sales of goods evolution FY 2018 EBITDA evolution (PLN m) (PLN m) 16 726 +956m 17 682 405 +63m 410 16 217 +508m +5.7% 347 +18.2% +3.1% -58m -14.4% 2,50% 2,32% 2,07% 2016 2017 2018 2016 2017 2018 Strong
Slide 7: Wholesale sales dynamics
Wholesale sales dynamics Wholesale segment supported by professionalization of small format stores Wholesale sales evolution by format C&C LFL (2018 YoY) 6,9% 43 9 3,8% 438 2,6% 2,7% 1,5% 53 358 0,7% 0,3% 0,3% 1,3% 0,0% 17 630 17 673 17 682 -1,3% 162 -0,4% -2,2% 17 192 +957 17 192 16 887 -2,7% -3,6%
Slide 8: Eurocash.pl - successfully developed in 2018
Eurocash.pl - successfully developed in 2018 Tremendous change in everyday life of store owner Digital approach to increase store owners competitiveness To customize offer to local consumers To flexibly compete with centrally managed retail chains To reduce store costs, making work much easier
Slide 9: Retail – increased asset base
Retail – increased asset base Ongoing integration affecting short-term retail results FY 2018 Sales of goods evolution FY 2018 EBITDA evolution (PLN m) (PLN m) 4 319 153 151 3 436 +883m +1.2% -46m +1 039m -30.2% 107 +25.7% 6,32% +2m 2 397 +43.4% 4,46% 2,48% 2016 2017 2018 2016 2017 2018 Sales incr
Slide 10: Retail – biggest supermarket chain in Poland
Retail – biggest supermarket chain in Poland Merger of 3 businesses under professional process management Key milestones for integration process December December June September From October 2017 2018 2019 2019 2019 Further realization of EKO stores remodeling Mila stores remodeling strategic goals
Slide 11: Projects – investments in the future growth
Projects – investments in the future growth PLN 11m result improvement due to Fresh project break even point in 3Q 2018. FY 2018 Sales of goods evolution FY 2018 EBITDA evolution (PLN m) (PLN m) 680 +129 2016 2017 2018 551 271 +280 +11 -40 -12 -41 2016 2017 2018 -52 Projects – R&D on behalf of indep
Slide 12: 2018 financial summary - profitability
2018 financial summary - profitability Normalized net profit impacted by increase of depreciation and net financial costs due to increased leverage % % Y/Y PLN m (normalized) 2017 2018 of Sales of Sales Change 2017 2018 Depreciation increase by PLN 21m, driven by EBITDA 360,7 373,6 1,7% 1,6% 4% Re
Slide 13: Cash Flow
Cash Flow LTM Operating CF at 133% EBITDA (normalized) Cash conversion cycle PLN m 2017 2018 (after IFRS 15) 40 31 31 28 30 30 27 Net operating cash flow 471 499 24 21 20 Net profit (loss) before tax 20 156 25 23 21 23 24 24 20 20 0 Depreciation 183 204 -20 (21) (21) (22) (23) (25) (24) Change in wo
Slide 14: Net debt vs. LTM EBITDA
Net debt vs. LTM EBITDA Healthy and declining leverage thanks to strong cash generation Net Debt vs. EBITDA in 2018 1,90 1,67 1,36 1,29 1,10 1,11 1,02 0,91 431 584 441 486 419 464 361 370 363 468 360 685 363 608 419 382 1Q'17 2Q 3Q 4Q 1Q'18 2Q 3Q 4Q LTM EBITDA (PLN m) NET DEBT (PLN m) NET DEBT / EBI
Slide 15: IFRS 16
IFRS 16 Net Debt vs. EBITDA in 2018 (PLN m) CURRENT IFRS 16 IMPACT AFTER IFRS 16 SALES 22 833 22 833 EBITDA 419 330(1) 748(1) EBITDA margin 1,8% 3,3% NET DEBT / IFRS16 INDEX 382 (2) 1 802 2 184 (3) NET DEBT (IFRS16 INDEX) / EBITDA 0,9 2,9(3) CAPEX-light business model will drive IFSR16 Index / EBI
Slide 16: Key successful developments in 2018
Key successful developments in 2018 Educational and social projects driving competitiveness of small stores in their neighborhoods E-learning: 12,4k students, 70 courses 400 initiatives from 250 towns submitted to the contest by store owners Workshops: 6k students, 70 towns 100 grants for in
Slide 17: 2018 Summary
2018 Summary WHOLESALE RETAIL PROJECTS SALES EBITDA IN PROGRESS IN PROGRESS CASH FLOW 17
Slide 18: Disclaimer
Disclaimer This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capita
Slide 19: For more information please contact
FOR MORE INFORMATION PLEASE CONTACT: Cezary Giza Investor Relations Director cezary.giza@eurocash.pl mobile: +48 693 930 415 19