Distribuidora Internacional de Alimentacion SA · BME:DIA

Distribuidora Internacional de Alimentacion SA — FY2011 Earnings Presentation

47 slides from Distribuidora Internacional de Alimentacion SA's earnings presentation, Feb 28, 2012

  1. Slide 1: Full Year 2011 Results

    FULL YEAR 2011 RESULTS February 28th 2012 1 28 February 2011

  2. Slide 2: Disclaimer

    This document does not constitute a purchase, sales or exchange offer, nor is it an invitation to draw up a purchase, sales or exchange offer, or advice on any stock issued by the DIA company. This document contains some expressions (gross sales under banner, comparable growth of gross sales under b

  3. Slide 3: Agenda

    1. Highlights 2011 2. Segment Review 3. Financial Review 4. Conclusions 5. Q&A 3

  4. Slide 4: Highlights

    Highlights  Strong Q4 2011 performance Delivering  13.8% Adjusted EBITDA and 26.3% Adjusted EBIT growth on our promises  FY2011 growth targets exceeded  Dividend proposal of 0.11€ per share  Attractive convenience /discount format mix Leveraging  Leading price image our  Operational leverage

  5. Slide 5: Key figures

    Key figures FY 2011 INC (w/o FX) (EURm) Number of stores 6,833 7.2% Net openings 460 64.9% Gross sales under banner 11,123.5 4.7% LFL 1.8% Adjusted EBITDA 558.4 11.0% Adjusted EBITDA margin 5.7% 42 bp Adjusted EBIT 287.7 25.5% Adjusted net profit 156.2 14.2% Adjusted EPS (€) 0.231 15.0% DIVIDEND PRO

  6. Slide 6: Investing in new formats

    Investing in new formats  Transformation process  67% COCO stores remodelled to DIA Market and Maxi format  Successful commercial development in fruit and vegetables area 6 6

  7. Slide 7: Price image

    Price image  Best price image in 4 out of 7 countries  Spain, Portugal, Argentina and Brazil  2011 gap with the main price competitor was expanded in all these countries  Set-up of DIA World Trade (DWT), the central purchasing office in Genève 7 7

  8. Slide 8: Loyalty card: ClubDIA

    Loyalty card: ClubDIA million cardholders New members Dec. 11 Spain 0.8 14.2 Win-win Portugal 0.2 3.3  Price for customer France 0.9 3.4 Argentina 0.5 3.3  Volume for DIA & Suppliers Turkey 2.3 2.3 TOTAL DIA 4.8 26.6  Data sharing Promotional tool  Adjustable discounts (10-30%) on 300- 400 produ

  9. Slide 9: Franchises and productivity increases drive margin expansion

    Franchises and productivity increases drive margin expansion  2,584 franchised stores, of which 514 were added in 2011  Flexible operational format which ensures a competitive position for smaller stores  Significant margin improvement for DIA (COCO to COFO)  Continued productivity improvements

  10. Slide 10: 2. Segment Review

    1. Highlights 2011 2. Segment Review 3. Financial Review 4. Conclusions 5. Q&A 10

  11. Slide 11: Iberia

    IBERIA INC INC Q4 2011 FY 2011 (w/o FX) (w/o FX) (EURm) Number of stores 3,380 65 3,380 75 Gross sales under banner 1,449.5 2.4% 5,600.0 1.3% LFL 0.8% 0.2% Adjusted EBITDA 131.2 12.8% 413.7 10.4% Adjusted EBITDA margin 10.3% 101 bp 8.4% 77 bp Adjusted EBIT 91.2 20.3% 256.2 19.7% Adjusted EBIT margin

  12. Slide 12: Iberia: Spain

    Iberia: Spain 2011 INC Gross sales under 4,665.8 1.7% banner (€ M) Number of stores 2,827 +61 (*) constant rate  2011 ended on a strong note despite economic conditions  Keys for 2011:  Commercial proposition  Transformation to new Maxi and Market formats  Focus on perishables  Operational eff

  13. Slide 13: Iberia: Portugal

    Iberia: Portugal 2011 INC Gross sales under 934.2 -0.5% banner (€ M) Number of stores 553 +14 (*) constant rate  Able to grow our profits in the worst environment in decades  Keys for 2011:  Improved price image  Proximity and confidence in the Minipreco banner  Sustained efficiency improvement

  14. Slide 14: France

    FRANCE INC INC Q4 2011 FY 2011 (w/o FX) (w/o FX) (EURm) Number of stores 916 0 916 -20 Gross sales under banner 661.4 -6.7% 2,644.8 -5.4% LFL -6.4% -6.7% Adjusted EBITDA 28.0 -5.2% 88.5 -8.1% Adjusted EBITDA margin 4.8% 11 bp 3.8% -7 bp Adjusted EBIT 8.3 16.2% 11.3 -15.8% Adjusted EBIT margin 1.4% 2

  15. Slide 15: France

    France 2011 INC Gross sales under 2,644.8 -5.4% banner (€ M) Number of stores 916 -20 (*) constant rate  Successful cost-cutting measures, with EUR60.4m of productivity improvements in 2011  Progress on franchising (26.7% stores franchised vs 18.8% previous year)  FY 2011 margin stable despite de

  16. Slide 16: Emerging Markets

    EMERGING MARKETS INC INC Q4 2011 FY 2011 (w/o FX) (w/o FX) (EURm) Number of stores 2,537 159 2,537 405 Gross sales under banner 786.5 24.4% 2,878.8 23.8% LFL 16.1% 15.2% Adjusted EBITDA 22.1 57.8% 56.2 68.8% Adjusted EBITDA margin 3.3% 69 bp 2.3% 59 bp Adjusted EBIT 12.4 106.4% 20.2 573.5% Adjusted

  17. Slide 17: Argentina

    Argentina 2011 INC Gross sales under 868.0 38.5% banner (€ M) Number of stores 495 +47 (*) constant rate  Enhanced market position with best price image in the country  47 stores openings, most of them under franchised model  Steady improvement in Adjusted EBITDA margin 17 17

  18. Slide 18: Brazil

    Brazil 2011 INC Gross sales under 1,341.6 16.7% banner (€ M) Number of stores 480 +72 (*) constant rate  Expansion acceleration on franchising (48.1% stores franchised vs 36.5% previous year)  72 net stores openings, of which 46 were in Q4 2011. Opening of a new region, Rio Grande do Sul, in Novem

  19. Slide 19: Turkey

    Turkey 2011 INC Gross sales under 461.9 26.4% banner (€ M) Number of stores 1,115 +225 (*) constant rate  Private label model upgraded by strong presence of national brands and perishables  225 openings in 2011, with a capex of around EUR20m to 1,115 total stores (store selling area increase of 21

  20. Slide 20: China

    China 2011 INC Gross sales under 207.3 +7.4% banner (€ M) Number of stores 447 +61 (*) constant rate  61 stores opened in 2011. Good progress towards a successful commercial model and positioning  Private label gaining presence in our sales, with a significant increase in sales contribution in 201

  21. Slide 21: 3. Financial Review

    1. Highlights 2011 2. Segment Review 3. Financial Review 4. Conclusions 5. Q&A 21

  22. Slide 22: Q4 2011 P&L account

    Q4 2011 P&L account % Net % Net INC 2011 Q4 2010 Sales Q4 2011 Sales (w/o FX) (EURm) Gross sales under banner 2,807.0 2,897.4 5.4% Net sales 2,476.5 2,536.4 4.6% Gross profit 548.8 22.2% 570.1 22.5% 5.7% OPEX -387.8 -15.7% -388.9 -15.3% 2.4% Adjusted EBITDA 161.0 6.5% 181.2 7.1% 13.8% Adjusted EBIT

  23. Slide 23: FY 2011 P&L account

    FY 2011 P&L account % Net % Net INC 2011 FY 2010 Sales FY 2011 Sales (w/o FX) (EURm) Gross sales under banner 10,792.0 11,123.5 4.7% Net sales 9,588.0 9,779.5 3.5% Gross profit 2,051.1 21.4% 2,098.0 21,5% 3.7% OPEX -1,544.0 -16.1% -1,539.6 -15.7% 1.3% Adjusted EBITDA 507.1 5.3% 558.4 5.7% 11.0% Adju

  24. Slide 24: Emerging markets gain weight

    Emerging markets gain weight 2010 Gross sales 2011 under banner Emerging 22.9% Emerging 25.9% Iberia Iberia France 51.2% 50.3% France 25.9% 23.8% 2010 Adjusted 2011 Emerging 7.1% EBITDA Emerging 10.1% France France 15.9% 19.0% Iberia Iberia 73.9% 74.1% 2010 Adjusted 2011 EBIT France 3.9% France 5.8%

  25. Slide 25: Capex

    Capex  EUR350m invested to provide future growth and maintain profitability  Remodellings amounted 44.2% of total capex in 2011  Investments in Emerging grew by 46.0% 31,2% On-going Capex 2011 EUR350m 44,2% Remodellings 24,6% Openings 25 25

  26. Slide 26: Trade working capital

    Trade working capital  Successful trade working capital management:  Stocks down to 24.4 days  Trade working capital up by EUR59.2m and 1.7 days EURm Days 50.0 1,067.1 47.5 48.3 1,007.8 954.3 1,780 80.7 82.7 83.3 1,621 1,726 -125 -179 -191 -6.2 -8.6 -9.0 -541 -539 -522 -26.9 -25.8 -24.4 FY 2009 F

  27. Slide 27: Solid capital structure

    Solid capital structure  Total net debt down to EUR576m  Net debt/Adjusted EBITDA ratio down to 1.0x. 625.0 -558.4 60.1 575.9 34.4 119.1 349.9 -59.2 FY 2 0 10 net Ad just ed N et working C apex Int erest & t axes Share buy b ack Ot her FY 2 0 11 net deb t ( *) EB IT D A capit al d ebt (*) Estimate

  28. Slide 28: Treasury stock and 2011 dividend

    Treasury stock and 2011 dividend  2% treasury stock in H2 2011 at €2.898 per share  2% Equity swap completed in Q1 2012 at €3.558  2011 ordinary dividend proposal:  €0.11 per share  47% Pay-out 28 28

  29. Slide 29: 4. Conclusions

    1. Highlights 2011 2. Segment Review 3. Financial Review 4. Conclusions 5. Q&A 29

  30. Slide 30: Targets 2011

    Targets 2011  Net sales growth constant rate: >3%   +3.5% at constant rate  Adjusted EBITDA: >EUR540m   EUR558m EUR562.8m at constant rate  Commercial network: 6,800   6,833 stores  Net debt / Adjusted EBITDA: 1.1x   1.0x 30 30

  31. Slide 31: 3-year operating objectives

    3-year operating objectives  Accelerate store openings, around 8,000 stores by 2013 (1,627 new stores in three 28% achieved years period)  Complete transformation into DIA Market and DIA Maxi  In Spain 80% achieved (*)  In France, from Ed to DIA  Increase focus on franchise  Over 3,000 stores

  32. Slide 32: Outlook 2012

    Outlook 2012  Net store openings 425 to 475  Gross sales under banner +4% to +6%  Adjusted EBITDA and Ajusted EBIT Provided in IPO guidance (*) (*) At constant currency rates and ex-impact of long term incentive plan (LTIP) 32 32

  33. Slide 33: Agenda

    1. Highlights 2011 2. Segment Review 3. Financial Review 4. Conclusions 5. Q&A 33

  34. Slide 34: Appendix

    Dia (4) Appendix vont

  35. Slide 35: P&L accounts

    P&L accounts FY 2010 % Net FY 2011 % Net INC 2011 Sales Sales (EURm) Net sales 9,588.0 9,779.5 2.0% Cost of sales & other income -7,536.9 -78.6% -7,681.5 -78.5% 1.9% Gross profit 2,051.1 21.4% 2,098.0 21.5% 2.3% Labour costs -796.0 -8.3% -807.9 -8.3% 1.5% Other operating expenses -465.9 -4.9% -423.2

  36. Slide 36: Capex: Store selling area evolution

    Capex Store selling area evolution 3,000,000 +4.8% to 2.78 million sqm 2,500,000 +19.1% 2,000,000 -0.9% 1,500,000 1,000,000 +1.8% 500,000 0 FY 2008 FY 2009 FY 2010 FY 2011 Iberia France Emerging 36 36

  37. Slide 37: Stores evolution

    Stores evolution FY 2010 FY 2011 INC 2011 Number of stores Spain 2,766 2,827 61 Portugal 539 553 14 IBERIA 3,305 3,380 75 FRANCE 936 916 -20 Argentina 448 495 47 Brazil 408 480 72 Turkey 890 1,115 225 China 386 447 61 EMERGING 2,132 2,537 405 TOTAL DIA 6,373 6,833 460 37 37

  38. Slide 38: Gross sales under banner by country

    Gross sales under banner by country FY 2010 FY 2011 INC 2011 INC (w/o FX) EURm Spain 4,588.3 4,665.8 1.7% 1.7% Portugal 938.5 934.2 -0.5% -0.5% IBERIA 5,526.8 5,600.0 1.3% 1.3% FRANCE 2,796.9 2,644.8 -5.4% -5.4% Argentina 697.7 868.0 24.4% 38.5% Brazil 1,150.2 1,341.6 16.6% 16.7% Turkey 427.2 461.9

  39. Slide 39: Net sales by country

    Net sales by country FY 2010 FY 2011 INC 2011 INC (w/o FX) EURm Spain 4,116.3 4,140.6 0.6% 0.6% Portugal 821.8 806.4 -1.9% -1.9% IBERIA 4,938.1 4,947.1 0.2% 0.2% FRANCE 2,518.5 2,356.9 -6.4% -6.4% Argentina 559.5 695.5 24.3% 38.4% Brazil 1,029.5 1,194.4 16.0% 16.1% Turkey 381.3 412.1 8.1% 26.3% Chin

  40. Slide 40: Adjusted EBITDA

    Adjusted EBITDA EURm Q1 2010 Q1 2011 INC INC (w/o FX) IBERIA 62.4 74.5 19.4% 19.4% FRANCE 15.6 16.9 7.8% 7.8% EMERGING 2.4 7.7 226.7% 221.6% TOTAL DIA 80.4 99.0 23.2% 23.1% EURm Q2 2010 Q2 2011 INC INC (w/o FX) IBERIA 97.6 99.3 1.7% 1.7% FRANCE 26.2 22.9 -12.5% -12.5% EMERGING 8.2 12.6 53.3% 66.3% T

  41. Slide 41: Productivity & Efficiency program

    Productivity & Efficiency program  EUR106.7m efficiency improvement in 2011, of which:  EUR46.3m generated in Spain  EUR60.4m generated in France  EUR106.7m before mentioned came from:  EUR79.1m Transfers from COCO to COFO  EUR9.1m Headquarters  EUR18.5m Others  EUR211.7m of accumulated savi

  42. Slide 42: Capex

    Capex  Total investment of EUR349.9m, in the upper-range of the guidance (EUR300-350m)  Breakdown by division  34.4% Iberia  39.7% France  26.0% Emerging  Breakdown by concept  31.2% On-going  44.2% Remodellings  24.6% Openings 42 42

  43. Slide 43: Working capital and Net debt

    Working capital FY 2009 FY 2010 FY 2011 EURm 1,621 1,726 1,780 Trade & other payables Days 80.7 82.7 83.3 EURm -125 -179 -191 Trade & other receivables Days -6.2 -8.6 -9.0 EURm -541 -539 -522 Inventories Days -26.9 -25.8 -24.4 EURm 954.3 1,007.8 1,067.1 Trade Working Capital Days 47.5 48.3 50.0 Net

  44. Slide 44: Cash Flow Statement

    Cash Flow Statement EURm FY 2010 FY 2011 Profit before taxes and minority interest 124.8 177.8 Depreciation & Amortization 300.3 287.8 Gains/losses on disposal of assets 40.4 4.4 Taxes paid -12.4 -88.9 Net change in trade working capital 53.5 59.2 Other payables & receivables 34.8 29.2 (A) CASH-FLOW

  45. Slide 45: Balance Sheet

    Balance Sheet FY 2009 FY 2010 FY 2011 EURm Non –current assets 2,165.1 2,141.5 2,206.3 Inventories 541.2 539.3 521.9 Trade & other receivables 125.0 179.0 191.3 Other current assets 196.3 76.7 100.2 Cash & Cash Equivalents 250.8 316.8 289.9 TOTAL ASSETS 3,278.4 3,253.4 3,309.6 Total Equity 804.9 422

  46. Slide 46: Glossary

    Glossary  Gross sales under banner: total turnover value obtained in stores, including indirect taxes (sales receipt value) and in all the company’s stores, both owned and franchised.  Net sales: total accounting revenues obtained from the total figure of gross sales under banner after deducting a

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Distribuidora Internacional de Alimentación (DIA) — FY2011 Earnings Presentation on 6ix