Distribuidora Internacional de Alimentacion SA · BME:DIA
Distribuidora Internacional de Alimentacion SA — Investor Day (2014)
20 slides from Distribuidora Internacional de Alimentacion SA's investor day presentation, 2014
Slide 1: Investor Day 2014
IN ESTOR IY, (4) DAY 2014
Slide 2: Financial Review
FINANCIAL REVIEW Amando Sánchez Chief Corporate Officer
Slide 3: Delivering growth
Delivering growth Gross sales under banner Adjusted EBIT +4.0% +13.1% EURm 11,476.3 374.7 EURm 11,210.0 346.6 293.0 10,600.4 2013 2011 2012 2012 2013 2011 Underlying net profit +17.9% 227.7 EURm 204.0 163.7 CAGR Source: Company data 2011 proforma Turkey & Beijing adjusted 2011 2012 2013
Slide 4: Constant cost reduction at the heart of DIA's success
Constant cost reduction at the heart of DIA’s success • Distribution costs reduction allows to improve prices and profitability • DIA distribution costs declined by -1.4% in CAGR 2009- 2013 • Energy cost in Spain decreased by -6.1% in 2013 % Distribution costs / Net sales 16.5% 16.1% 15.7% 15.3% 15.
Slide 5: Logistics savings offset fuel cost increases
Logistics savings offset fuel cost increases • Logistic costs go down despite rising fuel costs. Spain: Average diesel prices (EUR litre with taxes) (RH) vs Logistic costs (as % of sale) (LH) 1,440 5% 4.8% 4.7% 4.7% 1,340 4.5% 4.4% 1,240 4% 1,140 1,040 3% 0,940 FY 2009 FY 2010 FY 2011 FY 2012 FY 201
Slide 6: DIA, everyday low cost; more leverage going forward
DIA, everyday low cost; more leverage going forward • 2016 target reduction of 100bps on sales • In-store productivity 40% • Invest in prices • Real estate/Asset cost 40% • Expand operating margins • Logistics 20% Source: Company data
Slide 7: Leading productivity ratios
Leading productivity ratios • In Spain, the sales per employee ratio improved by 3.6% CAGR over the period 2009-2013 Net sales per employee Net sales per employee 225 (in thousand EUR) (in thousand EUR) 200 270 260 175 250 240 150 230 125 220 210 100 200 TESCO JERONIMO CASINO SAINSBURY CARREFOUR DIA
Slide 8: Making an effective use of capital
Making an effective use of capital • Lower average capex per sqm Average invested capital / Square meter of selling surface (EUR) 2,000 1,500 1,000 500 0 Iberia Brazil & Argentina • Expected lower capital intensity in coming years • Growing weight of Brazil, Argentina and China • Improved purchasing
Slide 9: Trade working capital, a key feature of DIA business model
Trade working capital, a key feature of DIA business model • Best-in-class inventory levels Inventories per square meter of selling space (in thousand EUR) 734 753 600 489 508 411 326 261 261 187 DIA Ahold Jeronimo Carrefour Martins Tesco Casino Metro Sainsbury Group Delhaize Morrisons Group Source
Slide 10: Steady improvement of returns
Steady improvement of returns • DIA’s Return On Investment (ROI) has improved during the last years. 17.9% 17.7% 17.3% 12.0% 2011 2012 2013 Sector average DIA ROI updated to December 2013 Sector Average: Ahold, Carrefour, Casino, Delhaize and Metro (*) ROI = Adj. Operating income (EBITDAR) / Avg. in
Slide 11: A unique opportunity in Brazil and Argentina
A unique opportunity in Brazil and Argentina • Very high returns in Brazil and Argentina • With a strong business model, very low cost base and gross margin, large price gap and unique private label positioning 26.1% 22.1% Iberia Brazil & Argentina DIA ROI updated to December 2013 (*) ROI = Adj. Ope
Slide 12: Robust cash flow generation
Robust cash flow generation Funds from operations Net debt / Adjusted EBITDA EURm 436.7 1.0x 1.0x 428.8 1.0x 404.0 FY 2011 FY 2012 FY 2011 FY 2013 FY 2012 FY 2013 2015E FY 2014E FY 2015E FCF 2014-2015 does not represent scale 2014 & 2015 does not represent scale • DIA’s business model generate massi
Slide 13: Outstanding TSR
Outstanding TSR ANNUALISED TSR (from 5/July/2011 to 28/February/2014) 40% 30.9% 30% 18.4% 19.8% 20% 11.5% 9.8% 10% 5.7% 6.3% 3.8% 0% -1.9% -3.8% -5.2% -10% Source: Bloomberg
Slide 14: Capex outlook
Capex outlook • We continue to allocate capex efficiently • We devote more capex to openings 2011 2014E France France Iberia Iberia Emerging Emerging Iberia Emerging EURm EURm EURm France +45% 200 170-180 150-160 139 150 150 120 150 90 100 100 100 20-25 50 50 50 0 0 0 2011 2011 2011 2014E 2014E 2014
Slide 15: Business Outlook
Business Outlook IBERIA EMERGING EURm EURm 5,500 3,200 5,000 2,700 4,500 2,200 4,000 1,700 3,500 3,000 1,200 2011 2011 2013 2013 2015E 2015E Net sales Op margin Net sales Op Margin • Growth from expansion • Maintain high space growth (mid teens) • Franchise advantage • Operating margins • Opex lever
Slide 16: Expect leverage through the P&L to continue
Expect leverage through the P&L to continue CAGR 2011-2013 17.9% 13.1% 4.0% • Cost leverage • More franchise • Lower asset costs Gross sales under Adjusted EBIT banner Underlying net profit Source: Company data
Slide 17: Underlying EPS growth in line to meet our goals
Underlying EPS growth in line to meet our goals >0.40 0.35 0.30 0.24 2011 2012 2013 2015E 2015 does not represent scale 2011 proforma Turkey & Beijing adjusted Source: Company data
Slide 18: Delivering returns to shareholders
Delivering returns to shareholders • More than EUR430m remuneration to shareholders in 3 years 0.16 0.13 0.11 2011 Dividend 2012 Dividend 2013 Dividend 2015 proposal Payout 47.8% 46.5% 45.7% • Dividend policy in the range of 40%-50% underlying net profit Source: Company data. 2015 does not represent
Slide 19: In summary
In summary • Strong performance since listing • Unique know-how in proximity and franchise • Expansion opportunities in key markets • Further opportunities to improve costs • Best-in-class returns • Double digit EPS growth 2012-15 reiterated
Slide 20: Investor Day 2014
IN ESTOR IY, (4) DAY 2014
Distribuidora Internacional de Alimentación (DIA) — Investor Day (2014) on 6ix