64 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 29, 2016
Slide 1: Casino
Casino Nourrin UN MONDE bE DIVERSITE
Slide 2: Half-year 2016 highlights (1/2)
Half-year 2016 highlights (1/2) ● Continued turnaround in France • Progression of the activity: same-store sales* growth of +0.9% in H1 2016 • Further market share gains • Profit recovery: Improved trading profit of +€85m in H1 2016 versus a loss of -€53m in H1 2015 ● Sustained good performances in
Slide 3: Half-year 2016 highlights (2/2)
Half-year 2016 highlights (2/2) ● Rapid execution of the asset disposal plan, which exceeded objectives by delivering proceeds of €4.2bn as of end-April from: • The disposal of operations in Thailand in March 2016 • The disposal of operations in Vietnam in April 2016 ● Sharp decline in Casino's net
Slide 4: Key figures – H1 2016
Key figures – H1 2016 H1 2015 H1 2015 In €m reported restated* H1 2016 Consolidated net sales 23,668 21,581 19,673 EBITDA 994 801 670 Trading profit 521 388 317 Consolidated net profit, Group share 79 79 2,581 Net underlying profit (loss), Group share 63 6 (3) Consolidated net financial debt (8,512)
Slide 5: Q2 2016 sales
Q2 2016 sales Half-year activity Results H2 2016 Appendices Jean-Charles Naouri, Chairman and Chief Executive Officer
Slide 6: A new quarter of accelerating growth for the Group
A new quarter of accelerating growth for the Group IMPROVEMENT IN ORGANIC SALES* IMPROVEMENT IN SAME-STORE SALES* In% In% 1.8% 3.8% Q2 2015 Q3 2015 Q4 2015 Q1 2016 1.5% Q2 2016 -0.7% Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 -0.4% -0.5% -0.3% -2.2% -2.1% -2.7% ● Strongest organic growth for the Group
Slide 7: Organic growth of +3.8% in Q2 2016
Organic growth of +3.8% in Q2 2016 SALES TRENDS BY SECTOR In €m Q2 2016 / Q2 2015 Change Q2 2016 Total Organic Same-store Growth growth* growth* France Retail 4,716 +0.1% +1.2% +0.2% Latam Retail 3,498 -11.1% +11.8% +7.1% Latam Electronics 1,092 -13.1% +0.3% +2.6% E-commerce 660 -19.4% -13.5% -13.5%
Slide 8: In France, continued growth and market share gains in Q2
In France, continued growth and market share gains in Q2 2016 Organic growth* Same-store growth* Géant Casino (excluding Codim) +2.2% +2.2% Leader Price +1.7% +1.1% Monoprix +0.7% -2.1% Casino Supermarchés +3.1% +1.2% Franprix -2.8% -0.6% Proximity -1.4% -3.3% France +1.2% +0.2% ● Géant Casino sales
Slide 9: Sales recovery in France confirmed by market share gains
Sales recovery in France confirmed by market share gains* GROWTH IN GROUP MARKET SHARE INCREASED MARKET SHARE FOR GÉANT IN FRANCE CASINO AND LEADER PRICE IN FRANCE From 13 June 2015 to 10 July 2016 0.2 0.2 0.2 0.2 0.2 2.7% 2.6% 2.6% 2.5% 2.5% 2.4% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 +0.1pt +0.1pt 0 P08 P09
Slide 10: Half-year activity
Q2 2016 sales Half-year activity Results H2 2016 Appendices Jean-Charles Naouri, Chairman and Chief Executive Officer
Slide 11: Confirmed growth at Géant
Confirmed growth at Géant ● Same-store sales growth of +3.1%* in H1 2016 ● Continued good sales trends in H1 • High growth in sales and traffic • Increase in market share In Q2 2016 ● Good commercial dynamics • Co-leader on prices Traffic up +6.2%** over a two-year period • Work on the food and the
Slide 12: Continuous good dynamic at Leader Price
Continuous good dynamic at Leader Price ● Same-store sales growth of +3.1%* in H1 2016 ● Strong commercial momentum during the period • Good price positioning** • Continuous improvements to in-store service • Growth in sales per square meter thanks In Q2 2016 to a simplified, better designed offer T
Slide 13: Good performances at Monoprix
Good performances at Monoprix ● Resilient food and apparel sales in a context marked by unfavourable weather conditions and the decline in tourist activity in Paris ● Organic sales growth of +1.5%* over the first half In Q2 2016 ● Continued very dynamic expansion, with 36 new stores opened during th
Slide 14: Improvement in Supermarkets' performances
Improvement in Supermarkets’ performances ● Same-store sales growth of +0.6%* in H1 ● Success of the marketing and operational action plans: • Revamp of promotions and loyalty programme • Improved fresh product range In Q2 2016 • Faster check-out and more consistent items availability Traffic up +1.
Slide 15: Sound performance at Franprix
Sound performance at Franprix ● Stable same-store sales* over the first half of 2016 ● Continued roll-out of the Mandarine concept, which has delivered strong growth and outperformed the other stores In Q2 2016 ● 58% of the store network to be renovated into the new format by end-2016 44% of the sto
Slide 16: Continuous action plans in Proximity
Continuous action plans in Proximity ● Continuous improvement of product offering and in-store services: development of new services, offer modernization, etc. ● Ongoing rationalisation of the store network: In Q2 2016 • Opening of stores Traffic up +6.4% • Transformations into franchises over a two
Slide 17: Excellent sales momentum at Éxito
Excellent sales momentum at Éxito ● Good growth in organic sales of around +11%* in H1 (excluding Brazil) ● Good sales performance in Colombia, driven by the revitalisation of hypermarkets ● Continued expansion in Colombia with 264 store openings (including 257 Aliados Surtimax stores) ● Sound perfo
Slide 18: GPA Food: accelerated growth at Assaí and Extra's relaunch
GPA Food: accelerated growth at Assaí and first success of Extra's relaunch H1 2016 SALES H1 2016 PERFORMANCE BY FORMAT BY BANNER* Multivarejo Organic growth** Expansion Premium, Q1 2016 Q2 2016 H1 2016 Hypermarkets supermarkets 30% and proximity H1 2016 sales: Multivarejo -2.8% +0.9% 7 stores 37% €
Slide 19: Recovery in same-store sales at Via Varejo
Recovery in same-store sales at Via Varejo starting in Q2 2016 ● Sharp turnaround in sales driven by the success of the revamped sales policy and the action plans ● Continued market share gains, both by category (+150bp) and in the overall market (+220bp), at end-May 2016 vs. end-May 2015: Via Varej
Slide 20: E-commerce: traffic progression and marketplaces development
E-commerce: traffic progression and marketplaces development ORGANIC SALES Sustained increase of +13.7% -29.8% in H1 2016 MARKETPLACE Strong growth at June 30, 2016 Satisfactory development ≈9,500 merchants >3,500 merchants BUSINESS Strong growth in mobile More than 50% of traffic now on mobile traf
Slide 21: Results
Q2 2016 sales Half-year activity Results H2 2016 Appendices Antoine Giscard D’Estaing, Chief Financial Officer
Slide 22: Preliminary comments (1/2)
Preliminary comments (1/2) ● The 2015 financial statements have been restated in accordance with IFRS 5 to reflect the sale of operations in Asia. Profits from the Asian businesses up until their sale, as well as the consolidated disposal gain, are reported under "Net profit from discontinued operat
Slide 23: Preliminary comments (2/2)
Preliminary comments (2/2) ● In the first half of 2016, changes in the scope of consolidation were not material and primarily concerned Franprix and Leader Price stores sold to master franchise partners that are now accounted for by the equity method ● Currency effects were again negative, with sign
Slide 24: Consolidated EBITDA – H1 2016
Consolidated EBITDA – H1 2016 in €m Disposal of operations in Asia (incl. E-commerce) -3.5% (193) Currency effect (103) 994 801 773 670 EBITDA EBITDA EBITDA EBITDA H1 2015 H1 2015 H1 2016 H1 2016 restated At constant At current exchange rates exchange rates 2016 HALF-YEAR RESULTS • July 29, 2016 24
Slide 25: Consolidated EBITDA – H1 2016
Consolidated EBITDA – H1 2016 H1 2016 at constant In €m H1 2015 restated exchange rates H1 2016 France Retail 146 268 267 Latam Retail 459 427 340 Latam Electronics 226 156 125 E-commerce (30) (78) (62) Total 801 773 670 ● Sound turnaround of EBITDA in France ● EBITDA for Latam Retail declined by -7
Slide 26: Consolidated trading profit – H1 2016
Consolidated trading profit – H1 2016 In €m Disposal of operations in Asia (incl. E-commerce) -2.4% (133) Currency effect (62) 521 388 379 317 Trading Trading profit Trading profit Trading profit profit H1 2015 H1 2016 H1 2016 H1 2015 restated At constant At current exchange rates exchange rates 201
Slide 27: Consolidated trading profit – H1 2016
Consolidated trading profit – H1 2016 H1 2016 at constant in €m H1 2015 restated exchange rates H1 2016 France Retail (53) 86 85 Latam Retail 299 267 212 Latam Electronics 191 124 100 E-commerce (50) (98) (80) Total 388 379 317 ● Trading profit improved sharply in France ● Decline of -11% for Latam
Slide 28: France Retail
France Retail In €m H1 2015 reported H1 2016 Consolidated net sales 9,136 9,264 EBITDA 146 267 Trading profit (53) 85 Retail (134) 35 Property development 81 49 ● EBITDA margin of 2.9%, up +128bp in H1 2016 ● Recovery in profitability of food retail operations, notably at Géant Casino, Leader Price
Slide 29: Latam Retail
Latam Retail In €m H1 2015 reported H1 2016 at CER* H1 2016 Consolidated net sales 7,803 8,607 6,836 EBITDA 459 427 340 EBITDA margin 5.9% 5.0% 5.0% Trading profit 299 267 212 Trading margin 3.8% 3.1% 3.1% ● In Colombia, Uruguay and Argentina: satisfactory operating performances ● In Brazil: • Multi
Slide 30: Latam Electronics
Latam Electronics In €m H1 2015 reported H1 2016 at CER* H1 2016 Consolidated net sales 2,924 2,722 2,182 EBITDA 226 156 125 EBITDA margin 7.7% 5.7% 5.7% Trading profit 191 124 100 Trading margin 6.5% 4.6% 4.6% ● Business picked up from the second quarter, reflecting banners conversions, growth of m
Slide 31: E-commerce
E-commerce In €m H1 2015 reported H1 2015 restated H1 2016 EBITDA (35) (30) (62) o/w France (25) (20) 1 o/w Brazil (10) (10) (63) Trading profit (55) (50) (80) o/w France (36) (31) (9) o/w Brazil (19) (19) (70) ● Disposal of Asian sites and closing of operations in 3 countries ● Improved profitabili
Slide 32: Underlying financial income
Underlying financial income* In €m H1 2015 reported H1 2015 restated H1 2016 France Retail (49) (49) (14) Latam Retail (73) (70) (145) o/w Colombia 8 8 (59) Latam Electronics (74) (74) (64) Asia (9) - - E-commerce (19) (20) (44) Total (223) (213) (267) ● Net financial income in France improved as a
Slide 33: Underlying net profit, Group share
Underlying net profit, Group share* In €m H1 2015 reported H1 2015 restated H1 2016 Trading profit and share of profits 558 425 335 of associates Financial expense (223) (213) (267) Income tax expense (83) (57) (61) Underlying net profit 252 156 7 from continuing operations Attributable to minority
Slide 34: Consolidated net profit, Group share
Consolidated net profit, Group share In €m H1 2015 reported H1 2015 restated H1 2016 Profit from continuing operations, 75 17 (296) Group share Profit from discontinued operations, 4 62 2,877 Group share Consolidated net profit, 79 79 2,581 Group share ● Consolidated net profit after asset disposals
Slide 35: Net profit from continuing operations
Net profit from continuing operations H1 2015 H1 2015 continuing H 1 2016 underlying Non-recurring operations H1 2016 Non-recurring continuing In €m restated items restated underlying items operations Operating profit 388 72 460 317 (533) (217) Net financial income (expense) (213) (179) (392) (267)
Slide 36: Net profit from discontinued operations
Net profit from discontinued operations In €m H1 2015 H1 2016 Net profit from operations in Thailand, Vietnam and other 101 30 Gain on disposals in Thailand and Vietnam 0 2,870 Net profit from discontinued operations 101 2,900 Of which Group share 62 2,877 ● In accordance with IFRS 5, net profit fro
Slide 37: Net earnings per share
Net earnings per share H1 2015 H1 2015 reported restated H1 2016 Total number of shares 113,006,036 113,006,036 112,071,429 Underlying diluted EPS* (€) 0.023 (0.483) (0.493) Diluted EPS for the consolidated total (€) 0.186 0.182 22.565 ● Underlying net profit, Group share used for the calculation of
Slide 38: Change in Group net debt over 12-month rolling period
Change in Group net debt over 12-month rolling period In €m (464) Non-cash elements 447 (460) (540) (475) (102) (41) (95) (500) (8,438) 4,326 Free cash Dividends Net Exercice Share Financial Change Reduction of Translation Change (6,343) flow before impact of the call purchase capex in scope the rec
Slide 39: Change in Casino net debt in France over 12-month rolling period
Change in Casino net debt in France over 12-month rolling period In €m (398) 398 3,861 1,589 (327) (8,482) (66) (500) (102) Free cash Dividends Sale of 20% Exercice Share Financial Non cash (4,027) Net impact flow before of GPA of disposals of the call purchase capex**** elements dividend* to Éxito*
Slide 40: Breakdown of financial net debt by segment
Breakdown of financial net debt by segment H1 2015 H1 2015 In €m reported restated* H1 2016 France Retail (8,487) (8,482) (4,027) Latam Retail (30) 39 (2,263) o/w Brazil (749) (679) (1,136) o/w Colombia 617 617 (1,194) Latam Electronics 511 511 222 Asie (555) (555) 0 E-commerce 49 49 (275) Total (8,
Slide 41: Debt redemption operations and simplification of financial structure in France
Debt redemption operations and simplification of financial structure in France in H1 2016 Redemption of bond maturing €386m in April 2016 Exercise of the call option €500m for the Monoprix convertible bond €645m Bond buybacks o/w €107m during the period €537m via public offer of June 2016 Total €1,5
Slide 42: Liquidity further strengthened by the disposals
Liquidity further strengthened by the disposals €6,577m LIQUIDITY* AT 30 JUNE 2016 BOND MATURITIES AT 30/06/2016 In €m In €m 3,711 1,000 900 850 853 3,079 2,866 600 602 552 508 450 1,578 Cash and cash Credit facilities 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 equivalents H1 2015 H1 201
Slide 43: Interim dividend
Interim dividend ● Payment of an interim dividend of €1.56 per share for 2016: • 50% of the annual dividend paid in respect of 2015 (unchanged in the last three years) • Ex-dividend on 28 November with a payment on 30 November 2016 2016 HALF-YEAR RESULTS • July 29, 2016 43
Slide 44: H2 2016
Q2 2016 sales Half-year activity Results H2 2016 Appendices Jean-Charles Naouri, Chairman and Chief Executive Officer
Slide 45: Sales growth and profitability improvement in France
Sales growth and profitability improvement in France ● Good commercial momemtum and profitability improvement in H1 2016 ● Continuous action plans and operating excellence • Ramp up of purchasing agreements with Intermarché and Dia • Reduction of shrinkage and logistics’ optimisation • Reduction of
Slide 46: Development of Éxito across the various formats and countries
Development of Éxito across the various formats and countries where it operates ● Continuous expansion in Colombia on all formats: • C. 20,000sqm of new retail areas in 2016 • Development of the new cash & carry format upon the Assaí model in Brazil • Commercial real estate: In total 26 commercial
Slide 47: Continued new commercial policy in Brazil
Continued new commercial policy in Brazil ● At GPA Food: • Continued commercial initiatives at Multivarejo: New promotional policy Work on fresh and vegetable assortment, Entry price and textile offer • Acceleration of cash & carry growth via expansion and stores’ conversions into the Assaí form
Slide 48: Objectives for H2 2016
Objectives for H2 2016 ● Sales growth and profitability improvement in France ● Development of Éxito across the various formats and countries where it operates ● Continued new commercial policy in Brazil 2016 HALF-YEAR RESULTS • July 29, 2016 48
Slide 49: Appendices
Q2 2016 sales Half-Year activities Results H2 2016 Appendices
Slide 50: Consolidated net sales – H1 2016
Consolidated net sales – H1 2016 In €m Disposal of activities +2.5% in Asia (incl. E-commerce) Currency (2,087) effect (2,448) 23,668 22,121 21,581 19,673 Net Sales Net Sales Net Sales Net Sales H1 2015 H1 2015 H1 2016 H1 2016 restated At constant At current exchange rates exchange rates 2016 HALF-Y
Slide 51: Change in same-store sales excluding fuel
Change in same-store sales excluding fuel France Q1 Q2 H1 2016 Géant Casino* +5.8% +1.7% +3.7% Leader Price +6.0% -0.1% +3.2% Monoprix +0.1% -0.9% -0.4% Casino Supermarchés +0.8% +1.1% +0.9% Franprix +0.5% +0.1% +0.3% Proximity stores +3.1% -2.5% +0.2% International Q1 Q2 H1 2016 Latam Retail +6.3%
Slide 52: Calendar effects
Calendar effects H1 2016 Géant Casino* 0.6% Leader Price 0.1% Monoprix 0.9% Casino Supermarchés 0.3% Franprix 0.5% Proximity 0.8% France Retail 0.5% Latam Retail 0.1% Group 0.2% * Excluding activities, primarily Codim (4 hypermarkets), in Corsica 2016 HALF-YEAR RESULTS • July 29, 2016 52
Slide 53: Definition of underlying net profit
Definition of underlying net profit ● Underlying net profit corresponds to net profit from continuing operations adjusted for (i) the impact of other operating income and expenses (as defined in the “Significant Accounting Policies” section of the notes to the annual consolidated financial statement
Slide 54: Reconciliation of reported net profit to underlying net profit
Reconciliation of reported net profit to underlying net profit H1 2015 H1 2015 H1 2016 In €m pro forma Restatements underlying H1 2016 Restatements underlying Trading profit 388 0 388 317 0 317 Autres produits et charges opérationnels 72 (72) 0 (533) 533 0 Operating profit 460 (72) 388 (217) 533 317
Slide 55: Other operating income and expenses
Other operating income and expenses H1 2015 restated H1 2016 In €m Total o/w Brazil Total o/w Brazil Gains (losses) on disposal of assets 21 (6) (18) (14) Other operating income 63 (53) (491) (188) and expenses Net income(expense) related 215 (27) (118) (16) to changes in scope of consolidation Prov
Slide 56: Share of profit of associates
Share of profit of associates In €m H1 2015 restated H1 2016 France Retail 18 4 Latam Retail 14 11 Latam Electronics 5 4 Total 37 18 2016 HALF-YEAR RESULTS • July 29, 2016 56
Slide 57: Underlying minority interests
Underlying minority interests* In €m H1 2015 restated H1 2016 France Retail 0 1 Latam Retail 100 47 o/w Brazil 59 28 o/w Colombia 25 5 Latam Electronics 73 29 E-commerce (24) (67) Total 149 10 * Underlying minority interests correspond to profit which is attributable to minority interests adjusted f
Slide 58: Cash flow statement
Cash flow statement In €m H1 2015 restated* H1 2016 Net debt at beginning of period (5,733) (6,073) Cash flow 848 503 Change in working capital (1,836) (2,686) Income tax paid (109) (111) Net cash from operating activities (1,098) (2,294) Capital expenditure (707) (660) Financial acquisitions (18) (
Slide 59: Simplified consolidated balance sheet
Simplified consolidated balance sheet In €m H1 2015 restated H1 2016 Goodwill 11,203 10,228 Intangibles and property, plant and equipment 14,593 12,927 Investments in associates 743 667 Non-current assets 2,148 2,051 Other non-current assets 544 519 Inventories 5,333 5,016 Trade and other receivable
Slide 60: Put options included in the balance sheet
Put options included in the balance sheet % Value Value Exercise In €m equity at 30/06/2015 at 30/06/2016 period Majority-owned Franprix - Leader Price 44 65 Various dates franchise stores Various dates Monoprix 3 2 2017 Any time Uruguay (Disco) 85 87 2021 Total 132 153 2016 HALF-YEAR RESULTS •
Slide 61: Off-balance sheet put options
Off-balance sheet put options % Value Value Exercise In €m equity at 30/06/2015 at 30/06/2016 period Minority-owned Various Franprix - Leader Price 37 11 dates franchise stores Any time Uruguay (Disco) 0 0 2021 Total 37 11 (Off-balance sheet) 2016 HALF-YEAR RESULTS • July 29, 2016 61
Slide 62: Average exchange rate
Average exchange rate H1 2015 H1 2016 Chg. % Argentina (ARS/EUR) 9.8208 16.0029 -38.6% Uruguay (UYP/EUR) 28.6148 34.9986 -18.2% Colombia (COP/EUR) 2.7720 3.4817 -20.4% (x1,000) Brazil (BRL/EUR) 3.3102 4.1296 -19.8% 2016 HALF-YEAR RESULTS • July 29, 2016 62
Slide 63: Closing exchange rate
Closing exchange rate H1 2015 H1 2016 Chg. % Argentine (ARS/EUR) 10.1626 16.5949 -38.8% Uruguay (UYP/EUR) 30.2405 33.8476 -10.7% Colombia (COP/EUR) 2.9001 3.2477 -10.7% (x 1,000) Brazil (BRL/EUR) 3.4699 3.5898 -3.3% 2016 HALF-YEAR RESULTS • July 29, 2016 63
Slide 64: 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 projections and estimates and their underlying assumptions, statements regarding plans, objective