Slide 1: 9M Results
9M RESULTS 9M 2022 RESULTS RELEASE HERE ADDITIONAL NON-FINANCIAL INFORMATION RELATING TO THE PERIOD (MEDIA PRESENTATION) HERE
Slide 2: Introductory Note
9M RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2
Slide 3: Content
9M RESULTS CONTENT 1. 9M 2022 SNAPSHOT 5. 9M 2022 EBITDA PERFORMANCE 2. 9M 2022 THE CONTEXT 5.1. EBITDA 5.2. EBITDA Margin 3. 9M 2022 KEY FIGURES 6. 9M 2022 FINAL REMARKS 4. 9M 2022 SALES PERFORMANCE 4.1. Group APPENDIX 4.2. Biedronka Financial Statements 4.3. Hebe Outlook 2022 4.4. Pingo Doce 4.5.
Slide 4: 9M 2022 Snapshot
9M RESULTS 1. 9M 2022 SNAPSHOT With inflation pressuring households, all banners kept price competitiveness at the core of their strategies, driving solid sales €1.3 bn 7.3% growth that protected profitability EBITDA EBITDA Mg (+17.8%) (-20 bps ) Focus on volume growth drove Group EBITDA to increase
Slide 5: 9M 2022 The Context
9M RESULTS 2. 9M 2022 THE CONTEXT Persisting generalised price increases. Energy prices accelerating Poland: Food retail sales remained resilient despite a more price-sensitive consumer behaviour. Consumer demand supported by the Government’s anti-inflation measures and Ukrainian refugees staying in
Slide 6: 9M 2022 Key Figures: Income Statement
9M RESULTS 3. 9M 2022 KEY FIGURES 3.1. INCOME STATEMENT STRONG SALES (€ Million) 9M 22 9M 21 ∆ Q3 22 Q3 21 ∆ PERFORMANCE Net Sales and Services 18,392 15,206 21.0% 6,509 5,304 22.7% DRIVING RESULTS Gross Profit Operating Costs 3,887 21.1% -2,540 -13.8% 3,289 21.6% -2,145 -14.1% 18.2% 18.4% 1,380 21.
Slide 7: 9M 2022 Key Figures: Cash Flow
9M RESULTS 3. 9M 2022 KEY FIGURES 3.2. CASH FLOW (€ Million) 9M 22 9M 21 SOLID EBITDA 1,348 1,144 OPERATIONAL Capitalised Operating Leases Payment -221 -208 DELIVERY DRIVING Interest Payment -114 -110 Other Financial Items 0 0 CASH Income Tax -157 -149 GENERATION Funds From Operations 855 677 Capex
Slide 8: 9M 2022 Key Figures: Balance Sheet
9M RESULTS 3. 9M 2022 KEY FIGURES 3.3. BALANCE SHEET (€ Million) 9M 22 2021 9M 21 STRONG Net Goodwill 603 618 616 Net Fixed Assets 4,257 4,159 3,951 BALANCE SHEET Net Rights of Use (RoU) 2,248 2,221 2,139 Total Working Capital -3,233 -3,290 -2,867 MAINTAINED Others 183 145 167 Invested Capital 4,058
Slide 9: 9M 2022 Sales Performance: Group
9M RESULTS 4. 9M 2022 SALES PERFORMANCE 4.1. GROUP • Strong sales performance across all businesses • Increased food inflation in all markets • Group LFL in the 9M at 19.0% +23.1% +21.0% 9
Slide 10: 9M 2022 Sales Performance: Biedronka
9M RESULTS 4. 9M 2022 SALES PERFORMANCE 4.2. BIEDRONKA • Strong price position remained central to the strategy • Increasing food inflation was a feature of the performance • 65 stores opened in 9M (54 net additions) and 252 remodellings • LFL growth and expansion drove market share gains 10
Slide 11: 9M 2022 Sales Performance: Hebe
9M RESULTS 4. 9M 2022 SALES PERFORMANCE 4.3. HEBE • Good sales performance maintained across the period • Growth rate benefited from a comparative that was still impacted by pandemic-related restrictions • E-commerce represented c.14% of sales 11
Slide 12: 9M 2022 Sales Performance: Pingo Doce
9M RESULTS 4. 9M 2022 SALES PERFORMANCE 4.4. PINGO DOCE • Reinforced saving opportunities for families • Enhanced further differentiation in perishables and food solutions • Inflationary pressure led to trading down • 7 stores opened (4 net additions) and 25 renovations * Includes fuel sales 12
Slide 13: 9M 2022 Sales Performance: Recheio
9M RESULTS 4. 9M 2022 SALES PERFORMANCE 4.5. RECHEIO • Successfully positioned to benefit from the HoReCa recovery • The comparison against 9M 21 still benefited from the lifting of the pandemic restrictions • One new store opened in Cascais, reinforcing the service to HoReCa in the area * Includes
Slide 14: 9M 2022 Sales Performance: Ara
9M RESULTS 4. 9M 2022 SALES PERFORMANCE 4.6. ARA • Successful offer in place • Reinforcing low-price positioning and promotions enabled Ara to maintain strong sales momentum in a pressured market • Inflation was a relevant feature of the performance • 86 stores opened in 9M (85 net additions) and 4
Slide 15: 9M 2022 EBITDA Performance: EBITDA
9M RESULTS 5. 9M 2022 EBITDA PERFORMANCE 5.1. EBITDA • Strong value propositions and price-focused strategies boosted a sales driven performance in all banners +20.5% +17.8% 15
Slide 16: 9M 2022 EBITDA Performance: EBITDA Margin
9M RESULTS 5. 9M 2022 EBITDA PERFORMANCE 5.2. EBITDA MARGIN • Biedronka margin reflected price investment and increased cost inflation that worsened in Q3, mainly driven by higher electricity prices • Improved EBITDA margin for Hebe followed strong sales growth that also benefited from a more benign
Slide 17: 9M 2022 Final Remarks
9M RESULTS 6. 9M 2022 FINAL REMARKS The 9M good performance reflects our decision to further focus on price competitiveness absorbing part of the increases in purchasing prices to STRONG DELIVERY IN A suppliers and investing in saving opportunities for the families CHALLENGING ENVIRONMENT Extreme un
Slide 18: Q&A
9M RESULTS Q&A Group CFO Ana Luísa Virgínia 18
Slide 19: Appendix
9M RESULTS APPENDIX FINANCIAL STATEMENTS OUTLOOK 2022 19
Slide 20: Financial Statements (1/9): Income Statement
9M RESULTS FINANCIAL STATEMENTS (1/9) INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) 9M 22 9M 21 ∆ Q3 22 Q3 21 ∆ Net Sales and Services 18,392 15,206 21.0% 6,509 5,304 22.7% Gross Profit 3,887 21.1% 3,289 21.6% 18.2% 1,380 21.2% 1,156 21.8% 19.4% Operating Costs -2,864 -15.6% -2,450 -16.
Slide 21: Financial Statements (2/9): Cash Flow
9M RESULTS FINANCIAL STATEMENTS (2/9) CASH FLOW (Excl. IFRS16) (€ Million) 9M 22 9M 21 EBITDA 1,023 840 Interest Payment -12 -13 Other Financial Items 0 0 Income Tax -157 -149 Funds From Operations 854 677 Capex Payment -626 -429 Change in Working Capital 99 96 Others -52 -5 Cash Flow 275 339 21
Slide 22: Financial Statements (3/9): Balance Sheet
9M RESULTS FINANCIAL STATEMENTS (3/9) BALANCE SHEET (Excl. IFRS16) (€ Million) 9M 22 2021 9M 21 Net Goodwill 603 618 616 Net Fixed Assets 4,257 4,159 3,951 Total Working Capital -3,229 -3,287 -2,863 Others 155 121 144 Invested Capital 1,786 1,611 1,849 Total Borrowings 470 460 492 Financial Leases 3
Slide 23: Financial Statements (4/9): EBITDA Breakdown
9M RESULTS FINANCIAL STATEMENTS (4/9) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) 9M 22 Mg 9M 21 Mg 9M 22 Mg 9M 21 Mg Biedronka 1,119 8.8% 972 9.1% 899 7.1% 764 7.2% Hebe 20 8.0% 11 5.7% 2 0.7% -6 n.a. Distribution Portugal 241 5.9% 214 5.9% 187 4.6% 162 4.5% Ara 42 3.3% 15 2.0% 11 0.9% -10 n.a
Slide 24: Financial Statements (5/9): Financial Results
9M RESULTS FINANCIAL STATEMENTS (5/9) FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) 9M 22 9M 21 9M 22 9M 21 Net Interest -11 -13 -11 -13 Interests on Capitalised Operating Leases -102 -96 - - Exchange Differences -17 -7 -1 -3 Others -5 -3 -5 -3 Net Financial Costs -135 -119 -16 -19 24
Slide 25: Financial Statements (6/9): Sales Breakdown
9M RESULTS FINANCIAL STATEMENTS (6/9) SALES BREAKDOWN 9M 22 9M 21 ∆% Q3 22 Q3 21 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 12,726 69.2% 10,630 69.9% 23.0% 19.7% 4,437 68.2% 3,649 68.8% 26.4% 21.6% Hebe 252 1.4% 194 1.3% 33.6% 29.9% 89 1.4% 71 1.3% 31.6% 26.
Slide 26: Financial Statements (7/9): Sales Growth
9M RESULTS FINANCIAL STATEMENTS (7/9) SALES GROWTH Total Sales Growth LFL Growth Q1 22 Q2 22 H1 22 Q3 22 9M 22 Q1 22 Q2 22 H1 22 Q3 22 9M 22 Biedronka Euro 13.4% 23.7% 18.7% 21.6% 19.7% PLN 15.4% 26.9% 21.3% 26.4% 23.0% 12.2% 22.5% 17.5% 23.3% 19.5% Hebe Euro 25.9% 36.9% 31.8% 26.7% 29.9% PLN 28.0%
Slide 27: Financial Statements (8/9): Store Network
9M RESULTS FINANCIAL STATEMENTS (8/9) STORE NETWORK Openings Closings Number of Stores 2021 9M 22 9M 21 Q1 22 Q2 22 Q3 22 9M 22 Biedronka * 3,250 16 24 25 11 3,304 3,174 Hebe 291 3 5 5 4 300 284 Pingo Doce 465 2 1 4 3 469 458 Recheio 42 0 0 1 0 43 42 Ara 819 14 43 29 1 904 727 Closings / Openings Sa
Slide 28: Financial Statements (9/9): Capex
9M RESULTS FINANCIAL STATEMENTS (9/9) CAPEX (€ Million) 9M 22 Weight 9M 21 Weight Biedronka 292 51% 239 66% Distribution Portugal 151 26% 67 18% Ara 89 15% 33 9% Others 45 8% 26 7% Total CAPEX 577 100% 364 100% 28
Slide 29: Outlook 2022 (1/8)
9M RESULTS OUTLOOK 2022 (1/8) (released by March 9, 2022) The war initiated in Ukraine will have impacts that at this point are impossible to predict THE CONTEXT IS The rapid increase in food, energy, and transportation prices are today UNCERTAINT exacerbated by the military conflict and by increase
Slide 30: Outlook 2022 (2/8)
9M RESULTS OUTLOOK 2022 (2/8) (released by March 9, 2022) GROWTH & COMPETITIVENESS PROFITABILITY SUSTAINABILITY LONG TERM Focus on consumers’ Enhance the quality Increase productivity Deliver on the targets set for our STRATEGIC needs and expansion of value propositions and efficiency pillars of cor
Slide 31: Outlook 2022 (3/8)
9M RESULTS OUTLOOK 2022 (3/8) (released by March 9, 2022) In the current circumstances Biedronka’s priority is to stand by the Polish consumers and live up to its claim in a CLEAR moment of decrease in disposable income. Despite the poor visibility at this moment over the impact of recent events in
Slide 32: Outlook 2022 (4/8)
9M RESULTS OUTLOOK 2022 (4/8) (released by March 9, 2022) CLEAR Expand its store network in Poland (opening of c.30 stores in 2022) while continuing to focus on its STRATEGIC online growth strategy, which includes expanding its operation into new markets PRIORITIES Price competitiveness and promotio
Slide 33: Outlook 2022 (5/8)
9M RESULTS OUTLOOK 2022 (5/8) (released by March 9, 2022) * CLEAR STRATEGIC Consolidate price leadership and run a dynamic commercial strategy PRIORITIES Develop the assortment to drive an increased share of wallet. Private brand as a key area of the offer Gain scale - expansion as central to the st
Slide 34: Outlook 2022 (6/8)
9M RESULTS OUTLOOK 2022 (6/8) (released by March 9, 2022) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS (1/2) Develop in all banners food solutions that are healthier and respond to specific nutritional needs (vegan, CLEAR lactose-free and/or gluten-free solutions, children, ag
Slide 35: Outlook 2022 (7/8)
9M RESULTS OUTLOOK 2022 (7/8) (released by March 9, 2022) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS (2/2) Strengthen the involvement in social projects in all geographies, targeted to children, youngsters and CLEAR elderly people from vulnerable environments, focusing on as
Slide 36: Outlook 2022 (8/8)
9M RESULTS OUTLOOK 2022 (8/8) (released by March 9, 2022) * Acknowledging that we face an unprecedent level of uncertainty ahead of us, we rely on… Our teams’ preparation to quickly adapt to changes in the contexts where the banners operate to SUMMARY better serve the consumers Our stronger market p
Slide 37: Disclaimer
9M RESULTS DISCLAIMER Statements in this presentation that are forward-looking are based on current expectations of future events and are subject to risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertaint
Slide 38: Jerónimo Martins
Jerénimo Martins