Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Debt Investor Presentation (November 2021)
45 slides from Casino, Guichard-perrachon Sa's debt investor presentation, Nov 16, 2021
Slide 1: Lender Presentation November 2021
2021 Lender Presentation - November 2021 Lender Presentation / November 2021 Classification : Internal
Slide 2: 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,
Slide 3: Transaction overview
Transaction overview Lender Presentation / November 2021 Classification : Internal
Slide 4: Strategic refinancing & liability management exercise
Strategic refinancing & liability management exercise… Refinancing and liability management exercise aimed at: Pro-actively managing the maturity of outstanding EMTNs Aim Extending Casino’s debt maturity profile Reducing the average cost of funding Taking advantage of supportive market con
Slide 5: To further optimize Casino's capital structure
… to further optimize Casino’s capital structure In €m 400 Tender offer on the 2023 and 2024 EMTNs to address near term maturities 800 1,000 Maturity of the 2022 EMTNs 611 covered by the cash in the 508 525 Segregated Account 400 Cash in Segregated 370 Account: €339m 314 271 Segregated Account Jun-2
Slide 6: Transaction overview
Transaction overview Sources and Uses Sources Amount (€m) Uses Amount (€m) Term Loan B add-on 400 Repay existing EMTNS 280 Cash on balance sheet 3 Cash in Senior Secured Segregated Account for future debt repayments 120 Estimated fees and expenses 3 Total sources 403 Total uses 403 Pro forma capital
Slide 7: Pro forma financing structure
Pro forma financing structure Legend Free Float Rallye France Retail & E-Commerce as per TLB covenant definition 48% 52% Latam Restricted Group Economic rights % Existing Existing Unsecured €2,051m RCF4 EMTN programme Casino Guichard- Existing €1,000m Term Perrachon (CGP) Loan B €400m Term Loan B Ot
Slide 8: Term Loan B add-on – Summary terms
Term Loan B add-on – Summary terms Borrower » Casino Guichard-Perrachon (“CGP”) Guarantors » Distribution Casino France; Casino Finance; Monoprix; Segisor Amount » €400,000,000 Currency » EUR Maturity » August 2025 Margin » E+400bps Floor » 0.0% OID » 99.00-99.25 Repayment » At maturity » Corporate:
Slide 9: Indicative timetable
Indicative timetable November 2021 M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Key date Term Loan B add-on Tender Offer 16th November Transaction launch Tender Offer announcement 17th November Investor call 17th November – 18th November Investor mee
Slide 10: Company overview
Company overview Lender Presentation / November 2021 Classification : Internal
Slide 11: Casino at a glance
Casino at a glance Key business highlights Omni-channel offering • Multi-format, multi-banner and omni-channel retailer • Traditional food retail • Over 120 years of history • E-commerce food retail • Primary focus on France and Latin America food retail • E-commerce non-food retail • Leverages its
Slide 12: Key highlights
A leader in French and Latam food retail, with high-growth e-commerce operations France Retail Latin America E-commerce Food retail and food e-commerce Brazil food retail Cdiscount • Leading French food retail player, operating • €1.9bn stake3 in Brazil’s listed leader in • A Leading non-food 8,125
Slide 13: Highly experienced senior and local management team
Highly experienced senior and local management team Highly experienced Group management… Jean-Charles Naouri Julien Lagubeau David Lubek Arnaud Strasser Franck-Philippe Georgin Chairman and CEO Deputy CEO CFO Executive Director, General Secretary Corporate Development and Holdings … and deep bench o
Slide 14: Key Credit Highlights
Key Credit Highlights Lender Presentation / November 2021 Classification : Internal
Slide 15: Key credit strengths
Key credit strengths Leading position in the French food retail market through structurally well-positioned 1 formats, attractive consumer offering, and digitalisation 2 Best-in-class food and non-food E-commerce platform 3 Track-record of growth and value creation from new businesses 4 High-growth
Slide 16: Leading market position with exposure to dynamic regions
Leading market position with exposure to dynamic regions in 1 attractive food retail format Leading food retailer in France with 69% of sales generated in the fastest growing regions 8,125 stores1 within a diversified portfolio Île-de-France, Rhône-Alpes, Côte d’Azur generated 49% of Leading p
Slide 17: Strategic focus on a portfolio of buoyant formats and banners
1 Strategic focus on a portfolio of buoyant formats and banners Strategic repositioning on premium & convenience formats and organic products #2 in Convenience in France with increasing sales contribution Strong network of premium and convenience stores with the opening of 169 stores in 2020, and
Slide 18: Acceleration of digitalisation across all banners
1 Acceleration of digitalisation across all banners Continued digitalisation roll-out across all banners accelerated in a Covid-19 environment Doubling autonomous stores… Progress in use of digital solutions… +335 autonomous stores Le 4 Casino, 1st 24/7 cashier-less store in France Holders of th
Slide 19: Best-in-class food e-commerce platform
2 Best-in-class food e-commerce platform Disruptive grocery delivery partnerships reaping the benefit of increasing in-home consumption Strategic partnership with Strategic partnership with Strategic partnership with The first and only food distribution channel of Amazon in Profitable food e-com
Slide 20: National champion in non-food e-commerce
National champion in non-food e-commerce with attractive growth 2 levers – 2nd largest e-commerce player in France 23.0m1 monthly unique website visitors Top 8 internet retailing company shares as % value (2020)2 10.3m active customers in September 2021 19.1% LTM GMV (as of Sep-21) of €4.3bn
Slide 21: Track-record of strong growth and value creation from new businesses
Track-record of strong growth and value creation from new 3 businesses Capitalising on the Group energy management experience and the green energy momentum A leading player in photovoltaic auto-consumption and energy savings and a leading solar decentralized power producer in South East Asia, Lata
Slide 22: Leveraging our customer data to create additional value
Track-record of strong growth and value creation from new 3 businesses Leveraging our customer data to create additional value #5 Advertising platform1 Offers specialised customer relationship management services, covering (i) optimised customer targeting for supplier advertising or marketing sp
Slide 23: Continuous simplification of our Latam assets
Continuous simplification of our Latam assets to increase strategic 4 focus and enhance valuation Reaping the benefits of Assai’s spin-off Evolution of GPA and Assai cumulated share price in USD (ADR) Group’s Latam structure 28 26 After spin off 24 22 Casino 20 Spin-off Assai’s IPO 18 announced c.41
Slide 24: Leading the way in ESG
5 Leading the way in ESG A long-lasting commitment to responsible consumption #1 European retailer for its ESG policy and commitments by Vigeo Eiris1 Only retailer in the Wall Street Journal top 100 World Most Sustainably Managed Companies Top score obtained from leading ESG agencies… ESG scores
Slide 25: Demonstrated ability to deliver on the disposals asset plan
6 Demonstrated ability to deliver on the disposals asset plan Disposals summary Cumulative disposal Date Sold assets proceeds ▷ €213m: 15% of Mercialys’ share capital ▷ €742m: Monoprix real estate assets 2018 €1.1bn ▷ €150m: GreenYellow capital increase ▷ R2C ▷ €392m: sales to Fortress 2019 €1.8
Slide 26: Valuable asset base
6 Valuable asset base % interest Store network as Assets FY-2020 metrics of 30 Sep-21 Hypermarkets (o/w ) 100% 95 Sales: €3.8bn (o/w €3.6bn for Géant) (incl. ) 100% 833 Sales: €4.5bn 100% 906 Sales: €1.6bn Supermarkets (o/w ) 100% 425 Sales: €3.1bn (o/w €2.9bn for Casino Supermarkets) Convenience &
Slide 27: Proven range of initiatives to support free cash flow and deleveraging
Proven range of initiatives to further support free cash flow 6 generation and deleveraging Several levers driving improvement in FCF and deleveraging in France Growth in Post IFRS 16 EBITDA (€m) and margin1 (%) in Recurring savings from transformation plan: +€60m in France Retail + E-commerce H2-
Slide 28: Strong focus on cash flow generation and de-leveraging in France
6 Strong focus on cash flow generation and de-leveraging in France Reduction in gross debt providing ample headroom under RCF covenants Gross debt and GPA TRS and Forward evolution (in €bn) RCF covenants levels2 - France 3.5x 7.6 EBITDA 3.14x 6.6 headroom: EBITDA 5.8 €213m 2.64x headroom: 2.5x €179m
Slide 29: Improved liquidity
6 Improved liquidity Extended RCF facility maturity Extension and improvement in financial conditions of the main syndicated credit line, now set to mature in October 2026 Extension of the term of the facility from October 2023 to July 20261, for an amount of €1.8bn Review of the quarterly finan
Slide 30: Outlook for 2021 – France
6 Outlook for 2021 – France With very satisfactory levels of profitability in all formats, priority focus on growth via the expansion of the store base and acceleration in E-commerce Objective of 750 secured convenience store openings by the end of the year (Franprix, Vival, Naturalia, Le Petit Ca
Slide 31: Historical financials and current trading
Historical financials and current trading Lender Presentation / November 2021 Classification : Internal
Slide 32: Key figures
Key figures Change at FY FY Change In €m H1 2020 H1 2021 Change Change CER 2019 2020 at CER Net sales Group 16,140 14,480 -10% -0.5%1 34,645 31,912 -8% +8%1 o/w France (incl. Cdiscount) 8,739 7,810 -11% -7.2%1 18,288 17,256 -6% +3%1 o/w Latam 7,401 6,670 -10% +6.9%1 16,358 14,656 -10% +12%1 EBITDA G
Slide 33: France: strong growth in profitability
France: strong growth in profitability, with EBITDA (after lease payments) up +3.2% in H1 In €m – France (incl. Cdiscount) H1 2020 H1 2021 Change Consolidated net sales 8,739 7,810 -6.3%1 EBITDA 604 622 +2.9% EBITDA margin (%) 6.9% 8.0% +105 bps EBITDA after lease payments2 287 296 +3.2% EBITDA marg
Slide 34: France Retail banners H1 performance
France Retail banners H1 performance: Increase in trading profit for the retail banners of +50% In €m – France Retail H1 2020 H1 2021 Change Net sales 7,791 6,863 -7.3%1 EBITDA 561 574 +2.2% EBITDA margin (%) 7.2% 8.4% +115 bps Retail banners2 501 543 +8.5% EBITDA margin (%) 6.8% 7.9% +115 bps Green
Slide 35: Results – E-commerce (Cdiscount)
Results – E-commerce (Cdiscount): Growth in first-half EBITDA of +13% In €m – E-commerce (Cdiscount) H1 2020 H1 2021 Change Gross merchandise volume (GMV) 1,946 1,991 +2.3% o/w marketplace 676 747 +10.5% Net sales 948 947 - EBITDA2 43 48 +12.6% EBITDA margin (%) 4.5% 5.1% +58 bps Trading profit2 6 7
Slide 36: Free cash flow 2020 in France: +30%
Free cash flow 2020 in France: +30% Free cash flow In €m – continuing operations (France Retail + Cdiscount) 2019 2020 Change EBITDA 1,536 1,580 +45 (-) lease payments1 (637) (634) +3 EBITDA after lease payments 898 946 +48 Effect of reduced dividend (-) non-recurring items (excl. Rocade plan) (221)
Slide 37: Free cash flow – France scope excluding GreenYellow
Free cash flow – France scope excluding GreenYellow H1-21 YoY Cash flow from continuing operations up +51% In €m – continuing operations France (incl. Cdiscount), excl. GreenYellow1 H1 2020 H1 2021 Change EBITDA 570 594 +24 (-) lease payments2 (320) (325) -5 EBITDA after lease payments 250 269 +19 (
Slide 38: Q3 Trading Update - Sales
Q3 Trading Update - Sales In €m Q3-20 Q3-21 Change Net sales Group 7,426 7,734 4.1% o/w France (incl. Cdiscount) 4,123 4,051 -1.7% o/w Latam Retail 3,303 3,682 11.5% Net sales on a same-store basis in France Q2-21 Q3-21 4 weeks over October Monoprix -4.9% -4.1% -1.6% Supermarkets -10.4% -2.7% -2.6%
Slide 39: Q3 Trading Update – EBITDA
Q3 Trading Update – EBITDA In €m Q3-20 Q3-21 Change Net sales Group 7,426 7,734 4.1% o/w France (incl. Cdiscount) 4,123 4,051 -1.7% o/w Latam Retail 3,303 3,682 11.5% EBITDA Group 600 583 -2.8% o/w France (incl. Cdiscount) 358 310 -13.5% o/w Latam Retail 241 273 13.1% EBITDA after lease payments Gro
Slide 40: Update on Financial Debt as of Q3 2021
Update on Financial Debt as of Q3 2021 France activities (incl. GreenYellow) 1 – In €m 30-Jun-21 30-Sep-21 Latam1 – In €m 30-Jun-21 30-Sep-21 Gross debt (5,279) (5,897) Gross debt (3,197) (2,857) Cash and cash equivalents 538 541 Cash and cash equivalents 1,595 1,183 IFRS 5 adjustment 797 n.a.2 IFRS
Slide 41: Conclusion
Conclusion » Opportunistic refinancing with strong rationale Reduce average cost of funding by capitalising on attractive market conditions Extending pro forma maturity profile » Strong operational performance Good positioning in France with premium and convenience formats Strong performance
Slide 42: Appendix
Appendix Lender Presentation / November 2021 Classification : Internal
Slide 43: Latam: excellent performances, EBITDA up +3.9% in H1
Latam: excellent performances, EBITDA up +3.9% in H1 In €m H1 2020 H1 2021 Change Change at CER Consolidated net sales 7,401 6,670 -9.9% +6.9%1 o/w Multivarejo 2,958 3,007 +1.7% +21.6%2 o/w Assaí 2,586 2,014 -22.1% -6.4%2 o/w Grupo Éxito 1,848 1,648 -10.8% -3.6%2 EBITDA excl. tax credits 459 471 +2.
Slide 44: Improvement in net debt before IFRS 5 for the France Retail scope
Improvement in net debt before IFRS 5 for the France Retail scope Net debt Change before IFRS 5 over the H1 2020 H1 2021 In €m period France (4,620) +43 (4,577) o/w France Retail excl. GY (4,415) +210 (4,205) o/w E-commerce (Cdiscount) (376) -52 (428) o/w GreenYellow 171 -115 57 Latam Retail (1,726)
Slide 45: 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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