Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Casino Group — Investor Presentation (September 2018)
52 slides from Casino, Guichard-perrachon Sa's investor presentation, September 2018
Slide 1: Investor Presentation September 2018
INVESTOR PRESENTATION September 2018 INVESTOR PRESENTATION • SEPTEMBER 2018 1
Slide 2: Contents
CONTENTS 1 Key figures and highlights – H1 2018 2 Business review by banner 3 Financial results 4 Outlook for H2 2018 Appendices INVESTOR PRESENTATION • SEPTEMBER 2018 2
Slide 3: Key figures and highlights – H1 2018
Key figures 1 and highlights – H1 2018 INVESTOR PRESENTATION • SEPTEMBER 2018 3
Slide 4: Continuous growth acceleration throughout H1 2018
Continuous growth acceleration throughout H1 2018 Best semester for France Retail Return to strong growth in Latam activity since 2015 in Q2 2018 Same-store growth by quarter Same-store growth in Q1 and Q2 2018 +1.9% +1.8% +1.3% +4.4% +0.6% +0.2% +0.3% +1.9% Q2 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q
Slide 5: H1 2018 Group key figures
H1 2018 Group key figures Change Organic In €m H1 2017* H1 2018 (in% and €m) change** Consolidated net sales 18,439 17,816 -3.4% +4.1% EBITDA 798 773 -3.2% +7.3% Trading profit 450 439 -2.4% +10.3% Trading profit excl. tax credits 320 339 +6.1% +17.3% Underlying net profit, Group share 37 48 +28.6%
Slide 6: Announcement of an asset disposal plan of €1.5bn in June 2018
Announcement of an asset disposal plan of €1.5bn in June 2018 In-store innovations and digitisation of customer Transformation relationship into a less capital-intensive Partnerships with leading e-commerce players model On-going expansion of the franchise model Process to dispose of €1.5bn of non-c
Slide 7: Deployment of the Group's strategic priorities during the semester
Deployment of the Group’s strategic priorities during the semester 1 2 3 Expansion Strengthened New of the most leadership complementary buoyant formats in digital levers & and omni-channel of profitability Development activated during of new concepts the first half INVESTOR PRESENTATION • SEPTEMBER
Slide 8: Expansion of the most buoyant formats and development of new concepts
Expansion of the most buoyant formats and development of new concepts Key figures – H1 2018 Main accomplishments in H1 2018 PREMIUM +2.4%* growth at Monoprix New integrated and franchise stores opened +1.4%* growth New concepts created at Franprix & Naturalia at Franprix Numerous proximity ser
Slide 9: Strengthened leadership in digital and omni-channel
Strengthened leadership in digital and omni-channel Continuous Acceleration Strengthening of positions leadership in food in non-food e-commerce e-commerce in omni-channel and data Integration Website Partnership transformation Cdiscount corners roll-out Launch Baskets’ Launch International growth d
Slide 10: New complementary levers of profitability activated during the first half
New complementary levers of profitability activated during the first half 1 Purchasing agreements with “Horizon” next-generation France: national brands, Agreement announced in June 2018 purchasing platforms created general expenses, private Agreement for France labels signed in May 2018 in Fr
Slide 11: Business review by banner
2 Business review by banner INVESTOR PRESENTATION • SEPTEMBER 2018 11
Slide 12: Dynamic growth and initiatives for the Group's premium banners in H1
Dynamic growth and numerous initiatives for the Group’s premium banners in H1 Strong growth Outperformance Faster growth in organic products of the Paris region in e-commerce +2.4%* and of Naturalia Organic Dynamic customer Double-digit growth Double-digit growth traffic lifted for e-commerce at Nat
Slide 13: Three new concepts unveiled at Franprix and Monoprix in H1 2018
Three new concepts unveiled at Franprix and Monoprix in H1 2018 Franprix Naturalia Origines New Franprix New Naturalia concept concept New offering of vegetables and bulk products Dedicated to alternative medicines Catering areas, ready to eat meals Team of specialists Freshly cut items di
Slide 14: Growth acceleration among the revitalised banners
Growth acceleration among the revitalised banners Excellent sales New Acceleration dynamic corners deployed in digital +2.9%* Organic Strong growth in food sales, Sharp increase Deployment market shares, in Cdiscount, Organic of Casino Max, and new franchisees and Homeware corners with a basket incr
Slide 15: New concepts in revitalised banners
New concepts in revitalised banners Géant Leader Price New Cdiscount New “Next” concept corners Over 600 different non-food items displayed Fully redesigned retail spaces: fishmonger, in a 300sq.m. dedicated showroom rotisserie, delicatessen, bakery, fine wines A further 300,000 items availabl
Slide 16: Cdiscount: main H1 2018 successes
Cdiscount: main H1 2018 successes 1 Fast growth in B2C offerings & services 2 Dynamic progression of the Marketplace 3 Improved customer experience and faster delivery Continuous expansion of customers that subscribed 4 to “Cdiscount à Volonté” 5 Acceleration of the omni-channel strategy 6 Sustained
Slide 17: Cdiscount: a good performance and market share gains
Cdiscount: a good performance and market share gains Growing contribution of Cdiscount €1,614m corners GMV in H1 2018 Sequential growth Positive impact of “French Days” acceleration +7.5%* Data monetisation revenues – Organic GMV a key driver of profitability – growth up by around 35% 34.4%
Slide 18: Ongoing expansion of cash & carry in Latam and strong recovery in Brazil in Q2
Ongoing expansion of cash & carry in Latam and strong recovery in Brazil in Q2 Sustained Continued Increased robust growth expansion loyalty +24.0%* Organic 200bp market share gain** 4 new stores Successful commercial in Q2, and increased in H1, with a total operations, +7.0%* customer traffic 20 pl
Slide 19: Financial results
3 Financial results INVESTOR PRESENTATION • SEPTEMBER 2018 19
Slide 20: H1 2018 Group key figures (1/2)
H1 2018 Group key figures (1/2) Organic In €m H1 2017* H1 2018 Change change** Consolidated net sales 18,439 17,816 -3.4% +4.1% EBITDA 798 773 -3.2% +7.3% EBITDA margin (%) 4.3% 4.3% +1bp +13bp Trading profit 450 439 -2.4% +10.3% Trading margin (%) 2.4% 2.5% +3bp +14bp Impact of tax credits 130 100
Slide 21: H1 2018 Group key figures (2/2)
H1 2018 Group key figures (2/2) Underlying profit Change In €m H1 2017* H1 2018 In% and €m Trading profit 450 439 -2.4% Net financial expense (246) (206) -16.0% Income tax (51) (62) +23.1% Share of profit of equity-accounted investees 5 11 nm Net profit from continuing operations 158 182 +14.9% Unde
Slide 22: Free cash flow and change in net financial debt France, first semester
Free cash flow and change in net financial debt France, first semester €m H1 2017 H1 2018 Change Cash flow from continuing operations 129 175 +47 O/w exceptional items (119) (91) +28 Change in working capital (628) 69 +697 Income tax (51) (37) +14 Net cash from operating activities (550) 208 +758 In
Slide 23: Free cash flow and change in net financial debt France, 12 months ended 30 June 2018
Free cash flow and change in net financial debt France, 12 months ended 30 june 2018 H1 2018 €m FY 2017 Changes (12 months) Cash flow from continuing operations 580 628 +48 O/w exceptional items (231) (203) +28 Changes in working capital (100) 597 +696 Income tax (43) (29) +14 Net cash from operatin
Slide 24: Change in net debt by entity, 12 months ended 30 June 2018
Change in net debt by entity, 12 months ended 30 June 2018 Impact of the Change Segisor capital In €m 30 June 2017 over the period reduction 30 June 2018 France Retail (4,314) +95 +200 (4,019) E-commerce (214) -55 0 (269) Latam Retail (1,706) +187 -200 (1,719) O/w GPA (722) +194 0 (528) O/w Éxito (9
Slide 25: Improved financial profile in France
Improved financial profile in France Maturities of bond debt as of 6 September 2018: €5.7bn* In €m 850 900 675 744 720 497 444 508 348 2018 2019 2020 2021 2022 2023 2024 2025 2026 Bond buybacks to take advantage of favourable market conditions: €27m worth of 2019, 2020 and 2023 bonds bought back
Slide 26: High liquidity position maintained in France (1/2)
High liquidity position maintained in France (1/2) Upcoming debt maturities are easily covered by the €5.5bn liquidity position at 30 June 2018: The Group had cash and cash equivalents of €2.1bn in France as of end June €3.3bn in confirmed undrawn credit lines with an average maturity of 2.8 yea
Slide 27: High liquidity position maintained in France (2/2)
High liquidity position maintained in France (2/2) Confirmed credit lines In €m Rate Amount Drawn Maturity Confirmed credit lines – Casino* Variable 50 - 2018 Confirmed credit lines – Casino* Variable 175 - 2019 Confirmed credit lines – Casino* Variable 675 - 2020 Confirmed credit lines – Monoprix V
Slide 28: Outlook for H2 2018
4 Outlook for H2 2018 INVESTOR PRESENTATION • SEPTEMBER 2018 28
Slide 29: Financial outlook for the Group in 2018
Financial outlook for the Group in 2018 The Group confirms its 2018 objectives, and updates them following the asset disposal plan announced in June 2018: For trading profit: In France, it targets in food retail an organic* growth above10% of trading profit excluding property development, led by
Slide 30: Appendices
5 Appendices INVESTOR PRESENTATION • SEPTEMBER 2018 30
Slide 31: France Retail results – H1 2018
France Retail results – H1 2018 Var. In €m H1 2017* H1 2018 Var. organique** Consolidated net sales 9,208 9,310 +1.1% +1.3% EBITDA 281 307 +9.0% +7.3% EBITDA margin (%) 3.1% 3.3% +24bp +19bp Trading profit 110 136 +23.0% +17.3% Retail 78 114 +47.3% +37.4% Property development France 33 21 -34.4% -34
Slide 32: E-Commerce results – H1 2018
E-Commerce results – H1 2018 Organic In €m H1 2017* H1 2018 Change change** GMV*** 1,419 1,614 +13.7% +7.5% Consolidated net sales 835 876 +4.9% +4.8% EBITDA (12) (7) +43.8% +45.3% EBITDA margin (%) -1.4% -0.8% +67bp +69bp Trading profit / (loss) (24) (23) +6.3% +7.4% Trading margin (%) -2.9% -2.6%
Slide 33: Change in E-Commerce EBITDA in H1 2018
Change in E-Commerce EBITDA in H1 2018 E-Commerce EBITDA – E-Commerce EBITDA – H1 2018 vs. H1 2017 Q2 vs. Q1 In €m In €m 2017 H1 2017 H1 2018 +1.0% 2018 4.2 Q1 Q2 -6.7 -0.8% -5.5 -6.5 -12.0 -1.4% -1.4% -1.4% -10.9 -2.3% EBITDA margin EBITDA improved during H1 2018, reflecting optimised gross margi
Slide 34: Latam Retail results – H1 2018
Latam Retail results – H1 2018 Organic In €m H1 2017* H1 2018 Organic change** Consolidated net sales 8,397 7,630 -9.1% +7.3% EBITDA 529 473 -10.6% +6.1% EBITDA margin (%) 6.3% 6.2% -10bp -9bp Trading profit excl. tax credits 234 226 -3.2% +14.8% Trading margin excl. tax credits (%) 2.8% 3.0% +18bp
Slide 35: Underlying net financial result
Underlying net financial result In €m H1 2017 H1 2018 Change France Retail (65) (72) -10.7% E-commerce (18) (20) -14.3% Latam Retail (163) (114) +29.9% O/w Éxito (excluding GPA Food) (65) (56) +13.0% O/w Brazil (98) (58) +41.1% Total (246) (206) +16.0% Underlying net financial result improved by €
Slide 36: H1 2018 other operating income and expenses – Group and France
H1 2018 other operating income and expenses – Group and France In €m H1 2017* H1 2018 % change Other operating income and expenses – (274) (136) -50.2% Group O/w restructuring costs (124) (96) -22.1% Other operating income and expenses – (169) (75) -55.4% France O/w restructuring costs (90) (49) -45
Slide 37: Group free cash flow from continuing operations, 12 months ended 30 June 2018
Group free cash flow from continuing operations, 12 months ended 30 June 2018 12 months ended 30 June 2018 In €m Group Cash flow from continuing operations 1,611 O/w exceptional items (259) Change in working capital 682 Income tax (182) Net cash from operating activities 2,112 Net CAPEX (797) Free c
Slide 38: Cash-flow statement Group, continuing operations, first semester
Cash-flow statement Group, continuing operations, first semester H1 2017 H1 2018 Net debt at 1 January (3,367) (4,126) Cash flow from continuing operations 582 635 o/w exceptional items (141) (133) Change in working capital (1,871) (867) Income tax (40) (107) Cash from operating activities (1,329) (
Slide 39: €400m capital reduction of the holding company that controls Brazil
€400m capital reduction of the holding company that controls Brazil, enabling deleveraging of Colombia and France Debt at the Segisor holding company, which is financing the capital reduction, comprises a medium-term loan that will be repaid by future dividends from GPA Taking into account the v
Slide 40: Cash-flow statement France, first semester
Cash-flow statement France, first semester H1 2017 H1 2018 Net debt at 1 January (3,200) (3,715) Cash flow from continuing operations 129 175 o/w exceptional items (119) (91) Change in working capital (628) 69 Income tax (51) (37) Cash from operating activities (550) 208 Capital expenditure (352) (2
Slide 41: H1 CAPEX
H1 CAPEX H1 2017 H1 2018 Gross Net Gross Net In €m CAPEX Sale CAPEX CAPEX Sale CAPEX France (352) 146 (206) (274) 216 (57) O/w Property CAPEX (104) 55 (49) (11) 152 141 O/w Retail CAPEX (248) 91 (157) (263) 65 (198) E-commerce (22) 0 (21) (34) 6 (28) Latam Retail (251) 27 (224) (221) 1 (220) Total (
Slide 42: Franchise partnerships with Casino minority stakes
Franchise partnerships with Casino minority stakes Casino has a number of franchisees in its smaller formats of which some are independent franchisees and other are master franchisees, who are long term business partners, contributing to operational performance and commercial innovation. Since 2
Slide 43: Accounting treatment of operations with franchisees
Accounting treatment of operations with franchisees JV Losses are financed by both Casino and the franchisees in line with their respective share (49%/51%) The impact of losses is fully reflected in Casino Group accounts In the P&L, losses are consolidated through the equity method: 49% of the
Slide 44: CD Supply Innovation (CDSI) – Operations
CD Supply Innovation (CDSI) – Operations CDSI : Operations Casino/Dia International alliance In November 2015, Casino and Dia formed a strategic international alliance covering purchasing and services, resulting in the creation of ICDC Services joint venture. The purpose of the partnership is to i
Slide 45: CD Supply Innovation (CDSI) Financial structure and impacts
CD Supply Innovation (CDSI) Financial structure and impacts CDSI : Financial structure The JV has contracted a credit line as a facility of €130m in December 2017, maturing in June 18. In June 2018, this credit line has been reduced to €100m and extended for one year (maturity June 19). It is amor
Slide 46: Additional information following questions raised in recent meeting with investors
Additional information following questions raised in recent meeting with investors Cash position of France perimeter: breakdown by entity The scope of France includes Casino Guichard Perrachon (CGP), parent company, French businesses and wholly-owned holding companies The level cash & cash equ
Slide 47: Additional information following questions raised in recent meeting with investors
Additional information following questions raised in recent meeting with investors France – Cash in foreign currencies CGP manages some of its cash in Group operating currencies (notably BRL) and in USD Cash deposits in foreign currencies are done through 100% financial entities owned by CGP,
Slide 48: Additional information following questions raised in recent meeting with investors
Additional information following questions raised in recent meeting with investors Was the H1 2018 working capital improved by the selling of Géant non-food inventories to Cdiscount? As part of our omnicanal strategy, the handling of some non-food categories (mainly Electro) was transferred from G
Slide 49: Additional information following questions raised in recent meeting with investors
Additional information following questions raised in recent meeting with investors Are the good sales performance in July due to a non-recurring event (World Cup)? Our excellent performances in all banners persisted throughout the summer season, as shown by 4s and 8s numbers at end of August. They
Slide 50: Casino Group real estate portfolio in France
Casino Group real estate portfolio in France In €bn 4,1 4,0 4,0 3,9 2014 2015 2016 2017 The Group is regularly investing in its assets’ base and divesting some non-strategic properties INVESTOR PRESENTATION • SEPTEMBER 2018 50
Slide 51: Group Structure
Group Structure Economic interest Voting right 100.0% 100.0% 55.3% 62.4% 55.3% 75.1% 100.0% 50.0% 100.0% 50.0% 50.0% HoldCo 50.0% 36.5% 99.9% 4.1% 43.3% 0.0% 62.5% 64.7% 34.1% 63.4% 35.9% 25.2% 25.2% Note: figures as of July 2018 INVESTOR PRESENTATION • SEPTEMBER 2018 51
Slide 52: Disclaimer
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, objectives,
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