Distribuidora Internacional De Alimentacion Sa · BME:DIA
Distribuidora Internacional De Alimentacion Sa — Investor Presentation (2017)
30 slides from Distribuidora Internacional De Alimentacion Sa's investor presentation, 2017
Slide 1: Corporate Presentation
Corporate Presentation
Slide 2: Legal disclaimer
Legal disclaimer This document does not constitute or form part of any 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 Distribuidora Internacional de Alimentación, S.A. (“DIA” or the “Company”). Nor shall this
Slide 3: Index
Index 01 Introduction 4 02 Key Investment Highlights 8 03 Financial review 25 04 Appendix - additional information 28
Slide 4: Introduction
01 Introduction
Slide 5: DIA at a glance
DIA at a glance A story of profitable growth in food retail Key facts Continued growth profile1 (#, €m) GROSS SALES SIZABLE AND UNIQUE BUSINESS MODEL… # STORES ADJUSTED EBITDA UNDER BANNER 1. #1 global listed proximity discounter 2. Top 20 franchisor worldwide3/ #1 in food retail in Europe4 3. Loyal
Slide 6: Review of DIA's timeline
Review of DIA’s timeline Building an Iberian International Developing new 2P (price & proximity) format and leader expansion refocusing on core markets (80’s & 90’s) (2000’s) (2010’s) 2011 2014 2016 1979 IPO in the Spanish DIA on Amazon Prime Now Creation of 1993 2001 Exit from France Stock Exchange
Slide 7: DIA's geographical reach
DIA’s geographical reach (December 2016) Key facts #Total Stores 623 Key facts #Franchises 256 Gross Sales(€m) 848 #Total Stores 4,875 #Franchises 2,147 Discounter market #3 Gross Sales(€m) 5,967 position Discounter market #1 position Key facts # Total Stores 872 Key facts # Franchises 576 Gross Sal
Slide 8: Key Investment Highlights
02 Key Investment Highlights
Slide 9: Key investment highlights
Key investment highlights 1 2 3 4 5 Leading listed Multi-banner, multi-local, Flexible and cost-efficient Systematic delivery of Experienced discounter rightly customer-centric and operations levered by a organic and inorganic management team focused on offering innovative business sizeable entrepre
Slide 10: Leading listed discounter…
1 Leading listed discounter… [#1] listed discounter worldwide, having significantly gained market share in the last few years Global discounters ranking (by # stores; ‘000) DIA’s market share gain in its largest geographies #3 #1 10,006 2011 7.1% 9,937 #1 2016 8.6% #1 7,420 6,146 #1 2011 4.8% 3,107
Slide 11: …rightly focused on core customer values: Price & Proximity
1 …rightly focused on core customer values: Price & Proximity Proximity stores as the most resilient format and expected to drive global food retail growth in the mid-term Current trends in the global food retail sector… …support DIA’s long-term strategic positioning Mature markets Emerging markets
Slide 12: Leading price image across all geographies
1 Leading price image across all geographies Price as a differentiating feature vs. competitors 70 80 100 60 60 80 50 40 40 60 20 30 40 0 20 -20 20 10 -40 0 0 -10 -60 -20 -20 -80 -30 -100 -40 May-yy May-yy May-yy Dec-yy May-yy Nov-yy Nov-yy Nov-yy nov-13 nov-14 nov-16 may-14 may-15 may-16 dec-15 may
Slide 13: Multi-banner, multi-local approach
2 Multi-banner, multi-local approach Multi-format/brand strategy to meet all customers’ expectations Multi-banner and… …multi-local approach BANNER Proximity Proximity Proximity TYPE Attraction supermarket HPC store AVG. SIZE (Sqm) 400 - 1,000 700 - 800 200 OBJECTIVES • Best price • Best price • Bes
Slide 14: 2Pf business model focused on customer satisfaction
2 2Pf business model focused on customer satisfaction The 2Pf formula: price and proximity with best-in-class service provided by franchisees Customers at the centre of DIA’s business model… … resulting in tangible results on customer satisfaction Net Promoter Score1 (improvement from Nov-2013 to No
Slide 15: DIA Club: much more than a loyalty programme
2 DIA Club: much more than a loyalty programme Loyalty programme based on targeted marketing actions driving increased sales, average basket and frequency Targeted marketing actions bringing …widely used by our …providing tangible benefits price advantage to card holders customer base… for DIA Custo
Slide 16: Outstanding private label proposition backed by strong innovation
2 Outstanding private label proposition backed-by strong innovation Successful implementation of DIA’s private label in all countries driving superior price and quality image A continued and cost-efficient innovation funnel… … with proven track record Selection of • Choice and distribution of produc
Slide 17: DIA poised for digital transformation
2 DIA poised for digital transformation New measures have been implemented with a strong focus on improving operations for the 3 main pillars of the Company: customers, stores and local partners Digital transformation Store management Customers Franchisees • Store management: price, • Shopping list
Slide 18: Franchise model: a fundamental pillar of the business
3 Franchise model: a fundamental pillar of the business Unique franchise proposition supporting a flexible and efficient operation Well balanced store mix Top 20 franchisor worldwide1/ #1 in food retail in Europe2 % of owned and franchised stores by segment Top franchise ranking by geography and yea
Slide 19: Integrated and cost-efficient business model
3 Integrated and cost-efficient business model Fully integrated and cost-effective supply chain based on our proprietary IT infrastructure resulting in recurrent industry-leading productivity and return on investment Efficient and integrated EBITDA per employee (k€)1 Return on investment 2016 (%)1,2
Slide 20: Efficient store portfolio management
3 Efficient store portfolio management Active store portfolio management to adapt to evolving customer requirements Disciplined and smart capex allocation Rental flexibility • 90% Lease-hold Refurbishment Continued • Significant lessor plans rent negotiation atomisation Active Store • Contract flexi
Slide 21: Superior, resilient and consistent financial profile
4 Superior, resilient and consistent financial profile Stores (#) Gross sales under banner evolution (EURm) 7,337 7,420 10,306 10,314 6,938 9,096 9,199 6,102 8,587 7,810 4,355 4,617 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Adjusted EBITDA (EURm) Net debt & leverage2 evolution (EUR
Slide 22: Solid track record of integrating value enhancing acquisitions
4 Solid track record of integrating value enhancing acquisitions Recent acquisitions not only have helped to diversify the group but also improved core DIA business Effective capital allocation at low multiples… …with tangible results and further uplift potential Transaction multiples Key synergies
Slide 23: Additional avenues of growth going forward
4 Additional avenues of growth going forward Review of selected profitability enhancement and top-line growth opportunities Product enhancement and cost optimisation Significant white-space in core markets and M&A opportunities Development of recently-signed Significant white-space and master Remark
Slide 24: Experienced management team supported by an industry-leading Board
5 Experienced management team supported by an industry-leading Board DIA’s governing bodies as an example of the highest corporate governance standards Key management Independent/External Directors of the Board YEARS AT YEARS OF NAME NAME SELECTED PROFESSIONAL EXPERIENCE DIA INDUSTRY EXP. Ana María
Slide 25: Financial review
03 Financial review
Slide 26: Flexible and efficient capital structure
Flexible and efficient capital structure Growing shareholder remuneration Annualised TSR1 0.21 12% 0.20 Sustainable 0.18 shareholder returns 0.16 Our efficient capital structure 0.13 allows us to maintain a growing 0.11 6% dividend policy, well above the industry average 1% 2011 2012 2013 2014 2015
Slide 27: Best-in-class financial metrics
Best-in-class financial metrics DIA enjoys industry leading returns on investment and above average remuneration levels while maintaining a more conservative approach towards leverage than its peers 2016 Return on Investment (ROI) (%)1 2016 Leverage (Net debt / Adjusted EBITDA) 2016 Expected dividen
Slide 28: Appendix
04 Appendix Additional information
Slide 29: Definition of Alternative Performance Measures (APM)
Definition of Alternative Performance Measures (APM) • Gross sales under banner: total turnover value • Adjusted EBIT: operating profit after adding back non- obtained in stores, including indirect taxes (sales recurring costs, impairment and re-estimation of useful receipt value) in all the company
Slide 30: Corporate Presentation
Corporate Presentation
Distribuidora Internacional de Alimentación, S.A. (DIA) — Investor Presentation (2017) on 6ix