Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — FY2014 Earnings Presentation
68 slides from Casino, Guichard-perrachon Sa's earnings presentation, Feb 17, 2015
Slide 1: Full Year Results 2014
FULL YEAR RESULTS 2014 February 17, 2015
Slide 2: Highlights
Highlights ● France • End of the price repositioning cycle of discount banners (Géant and Leader Price) • Signing of a partnership agreement in the area of purchasing (Intermarché) • Continuing the strategy centred on the 4 priorities of the Group: discount banners (hypermarkets and Leader Price), p
Slide 3: 2014 key figures
2014 key figures Organic change 2014 vs. 2013 published Consolidated net sales €48,493m +4.7%* EBITDA €3,191m +4.1% EBITDA margin 6.6% stable Trading profit €2,231m +5.6% Trading margin 4.6% +7bp Net underlying profit, Group share €556m -3.9% at CER Cash flow €2,015m +9.1% at CER Net financial debt
Slide 4: France: end of the price repositioning cycle of discount banners
France: end of the price repositioning cycle of discount banners and satisfactory development of premium and convenience banners ● Géant: increase in both food and non-food volumes thanks to strong price cuts ● Leader Price: reassertion of the discount model • Leader Price is now positioned as the l
Slide 5: International: very good performance
International: very good performance ● Colombia, Thailand and Vietnam • Improvement in the macroeconomic environment • Very satisfactory operating and financial performances ● Brazil • Economic slowdown • Strong growth in profitability driven by management efforts ● Continuing strong dynamic of expa
Slide 6: Activities
ACTIVITIES Results Strategic outlook Appendices Jean-Charles NAOURI Chairman and Chief Executive Officer FULL YEAR RESULTS 2014 February 17, 2015
Slide 7: In 2014, Casino's activities posted a satisfactory growth
In 2014, Casino’s activities posted a satisfactory growth: +4.7% on organic basis* Change in sales In €m +4.7% +0.6% -5.0% -0.6% -0.3% Scope Organic* Exchange Petrol rate and calendar 48,493 48,645 effect ans 2013 2014 ● Organic growth* of +4.7% driven by: • Same-store sales’ increase in France • Co
Slide 8: Confirmation of sales recovery
Confirmation of sales recovery ● Now co-leader in terms of price for the hypermarket segment* in France with food sales growing since Q4 ● Positive traffic and strong recovery of volumes in 2014 with good performance at the end of the year In the 4th quarter of 2014 ● Numerous innovative sales initi
Slide 9: Innovative sales initiatives
Innovative sales initiatives Rounded prices Finlandek products Exito textile collections Cdiscount shop-in-shop FULL YEAR RESULTS 2014 February 17, 2015 9
Slide 10: Back to basics
Back to basics ● Now the least expensive banner on the market* ● Notable recovery in traffic and volumes since the start of Q4 2014 ● Increase in total sales of +1.2% for the whole year In the 4th quarter of 2014 thanks to expansion and the acquisition of Le Mutant and Norma stores Total sales up +2
Slide 11: Confirmed success of differentiation strategy
Confirmed success of differentiation strategy ● Organic growth of sales (excluding the 9 pm closing time of some stores and store disposals mandated by the French Competition Authority) ● Good performance of food sales with volumes up over the year ● Success of different sales formats: City Marché,
Slide 12: Good performance of supermarkets and convenience banners
Good performance of supermarkets and convenience banners CASINO SUPERMARKETS ● Steady recovery in sales during the year ● Stable traffic in the 4th quarter FRANPRIX ● Continued implementation of the banner's new concept ● Stability of market share in 2014 ● Increase in volumes of own-brand sales ● M
Slide 13: Good performance of international subsidiaries
Good performance of international subsidiaries* Market cap**: €7.5bn Market cap**: €4.0bn Sales €21bn +9.2% in organic Sales €4.3bn +6.8% in organic EBITDA €1,721m +€308m at CER EBITDA €361m +€10m at CER EBITDA margin 8.2% +40bp EBITDA margin 8.4% -34bp THAILAND Market cap**: €5.1bn Sales €2.8bn +3.
Slide 14: Excellent profitability of the GPA Group in 2014
Excellent profitability of the GPA Group in 2014 ● Confirmed leadership in food retailing (Multivarejo) and electronics (Viavarejo) ● Acceleration of expansion ● In a context of a slowdown, strong improvement In 2014* of profitability driven by rigorous implementation Sales: €21bn of operational eff
Slide 15: Good result of GPA's food banners
Good result of GPA's food banners ● Assaí: excellent performance of sales on an organic basis +32.7% Cash & carry stores, concept well suited to the evolution of consumption in Brazil ● Pão de Açúcar: unchallenged leader of the premium In 2014* format with an increasing market share Sales: €11.1bn O
Slide 16: Excellent performance (Viavarejo)
Excellent performance ● Viavarejo: leader in South America in the distribution of electronic products and furniture ● Buoyant market: ownership rate per household is still low In 2014* ● Success of operational excellence plans and achievement Sales: €7.2bn of sales and logistics synergies Organic gr
Slide 17: Increase in activity and profitability
Increase in activity and profitability ● Buoyant environment after a difficult period ● Leading food retailer in Colombia: market share strengthened in 2014 ● Slight decrease of EBITDA margin notably linked to the accelerated development of Surtimax In 2014* and Aliados formats Turnover: €4.3bn ● €8
Slide 18: Improvement in profitability
Improvement in profitability ● Improvement in profitability in an unfavorable local context THAILAND ● Leadership confirmed in terms of image and price and new successes of promotional operations In 2014* ● Return to positive same-store sales in the 4th quarter Turnover: €2.8bn Organic growth: +3.1%
Slide 19: Very good results in 2014
Very good results in 2014 ● Organic growth* of sales in a context of macroeconomic slowdown VIETNAM ● Sustained development of store network with the opening of 5 new hypermarkets in cities with strong potential ● Creation of malls around hypermarkets: property portfolio of 27 sites at the end of 20
Slide 20: E-commerce: pursuit of very strong activity growth
E-commerce: pursuit of very strong activity growth in line with the trend of previous years ● GMV* of €4.5bn, up +26.6% in 2014 (+28.6% in Q4 2014) ● 13.6m active customers** in the world at the end of 2014 (+23.1%) ● Growth founded on the Group’s networks of stores throughout the world: • 17,500 co
Slide 21: Results
Activities RESULTS Strategic outlook Appendices Antoine GISCARD D’ESTAING Chief Financial Officer FULL YEAR RESULTS 2014 February 17, 2015
Slide 22: Preliminary notes
Preliminary notes 2014 RESULTS IMPACTED BY DIFFERENT ACCOUNTING EFFECTS ● Scope of consolidation: • Consolidation via equity method of Mercialys since 21 June 2013 • Full consolidation of Monoprix since 5 April 2013 • Acquisition of Le Mutant (46 stores of which 40 operated) from March 2014 • Integr
Slide 23: Activities and trading profit
Activities and trading profit 2013 Organic 2014 In €m published Growth Sales 48,645 48,493 +4.7%* EBITDA** 3,337 3,191 +4.1% Trading profit 2,363 2,231 +5.6% Trading margin 4.9% 4.6% +7bp Share of profit of associates 21 77 * Excluding petrol and calendar effect ** EBITDA = Earnings before Interest,
Slide 24: Sustained organic growth of sales in 2014
Sustained organic growth* of sales in 2014 in €bn 48.5 3.5 E-commerce +25.4% 3.5 Asia +4.2% 7.2 Latam Electronics +4.0% +4.7% 15.4 Latam Retail +8.8% 18.8 France Retail -2.1% 2014 * Excluding petrol and calendar effect FULL YEAR RESULTS 2014 February 17, 2015 24
Slide 25: Organic growth in Group trading profit
Organic growth in Group trading profit +5.6% €2,393m Trading profit €2,363m on organic basis €127m -€97m* €2,266m Scope Organic growth Published trading profit 2013 published profit 2013 trading profit 2014 trading profit 2014 scope * Scope effects are mainly composed of Mercialys and Disco FULL YEA
Slide 26: Distribution of Group trading profit
Distribution of Group trading profit 2013 published 2014 In €m excluding Mercialys France Retail 555 396 Latam Retail 892 895 Latam Electronics 546 677 Asia Retail 264 255 E-commerce 31 7 France & Brazil operations* 31 26 New operations** 0 (19) TOTAL 2,288 2,231 * Including Cdiscount, Monshowroom a
Slide 27: France Retail
France Retail 2013 published 2014 Organic In €m excluding Mercialys growth Sales 18,881 18,848 -2.1%* EBITDA 987 835 -17.0% Trading profit 555 396 -28.1% Trading margin 2.9% 2.1% ● Significant price investment at Leader Price mainly explaining the fall of trading profit ● Casino banners were resilie
Slide 28: Latam Retail
Latam Retail 2013 2014 Organic In €m published growth Sales 15,661 15,422 +8.8%* EBITDA 1,253 1,215 +7.6% Trading profit 892 895 +11.9% Trading margin 5.7% 5.8% +17bp ● Brazil: continued improvement in margins at Pão de Açúcar and Assaí, as well as satisfactory growth in total trading profit on orga
Slide 29: Latam Electronics
Latam Electronics 2013 2014 Organic In €m published growth Sales 7,576 7,245 +4.0%* EBITDA 600 737 +33.7% Trading profit 546 677 +35.7% Trading margin 7.2% 9.3% +220bp ● Satisfactory growth of Viavarejo activities on a high basis in 2013: +5.1% adjusted for store disposals due to closer ties between
Slide 30: Asia
Asia 2013 2014 Organic In €m published growth Sales 3,561 3,513 +4.2%* EBITDA 368 361 +3.3% Trading profit 264 255 +1.5% Trading margin 7.4% 7.2% -15bp ● Satisfactory operating performance in a challenging context ● Profitable growth in Thailand in food retail formats ● Stable high-level margin with
Slide 31: E-commerce
E-commerce 2013 2014 Total In €m published growth GMV published by Cnova 3,567 4,516 +26.6% Sales 2,902 3,465 +19.4% TRADING PROFIT(1) 31 7 France & Brazil operations(2) 31 26 New operations(3) 0 (19) Free Cash Flow (4) generated by Cnova 56 203 x3.6 ● High growth in GMV and sales ● Nearly stable tr
Slide 32: Underlying financial results
Underlying financial results* 2013 2014 In €m published France Retail** (255) (240) Latam Retail (97) (111) Of which Brazil (114) (128) Latam Electronics (185) (195) Asia (26) (19) E-commerce (55) (63) Others 6 9 Mercialys (18) 0 TOTAL (631) (620) ● Reduction in financial expenses in France and for
Slide 33: Net underlying profit, Group share
Net underlying profit* Group share 2014 2013 2014 at constant In €m underlying published published exchange rates Trading profit 2,363 2,231 2,390 Financial expenses (631) (620) (653) Income tax expense (499) (467) (504) Share of profit of associates 21 77 82 Profit 1,254 1,221 1,315 from continuing
Slide 34: Net underlying EPS
Net underlying EPS 2013 2014 Change In €m underlying Diluted average number of shares 112,918,625 113,038,122 +0.1% Underlying EPS* (€) 5.33 4.74 -11.1% ● Dividend recommended at the General Meeting of 12 May 2015: €3.12 per share • Payable in cash • Detachable on May 14, 2015 * Before dilution link
Slide 35: Published income statement
Published income statement 2013 2014 In €m published published Trading profit 2,363 2,231 Other operating income and expenses 261 (494) Financial expenses (719) (678) Income tax expense (401) (310) Share of profit 21 77 of associates Profit 1,524 826 from continuing operations Of which minority inte
Slide 36: Good generation of Free Cash Flow
Good generation of Free Cash Flow 2013 published 2014 2014 In €m exc. Mercialys at CER Cash Flow 1,956 2,015 2,135 Change in WCR 445 343 358 Operating 620 724 765 Non-operating (175) (381) (408) Net CAPEX (1,535) (1,511) (1,573) Free Cash Flow 866 846 920 ● Satisfactory growth in cash flow of +9.1%
Slide 37: Change in Group net financial debt
Change in Group net financial debt In €m (340) 846 (502) (411) Conversion Dividends differences Free Cash Financial paid and scope Flow investments impact and Cnova IPO (5,822) (5,416)* NFD NFD 31/12/2013 31/12/2014 ● Moderate rise in net financial debt: +7.5% ● Free Cash Flow of €846m nearly coveri
Slide 38: Excellent liquidity
Excellent liquidity €5,782m of liquidity* Bond maturities** At 31/12/2014 spread over time In €m In €m 1,000 1,000 3,584 900 900 850 750*** 600 650 2,198 552 508 386 Disponibilités Cash and cash Lignes de crédits Undrawn 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 equivalents confirm
Slide 39: Strategic Outlook
Activities Results STRATEGIC OUTLOOK Appendices Jean-Charles NAOURI President and CEO FULL YEAR RESULTS 2014 February 17, 2015
Slide 40: The Group in 2015
The Group in 2015 ● Casino’s revenue rose by +67% over the past 5 years, exceeding €48bn in 2014 to rank 11th among worldwide food distributors ● This strong growth, topping the largest distribution companies according to the most recent Deloitte study*, was built by prioritizing development in the
Slide 41: A diverse profile of high growth countries and store formats
A diverse profile of high growth countries and store formats ● Casino’s mix of store types and locations provide geographic diversification with leading positions in Latin America and Southeast Asia Group revenue breakdown by country Group revenue breakdown by store type Thailand Vietnam Electronics
Slide 42: Continued rollout of the Group's strategic priorities
Continued rollout of the Group’s 5 strategic priorities ● After their pricing repositioning, develop discount banners in France and accelerate international roll-out ● Strengthen leadership position in premium formats ● Boost expansion in convenience formats ● Cnova: maintain strong growth and Cash
Slide 43: Develop discount banners in France and accelerate international roll-out
After their pricing repositioning, develop discount banners in France and accelerate international roll-out ● Success of the overhaul of Géant and Leader Price’s business model • Géant currently co-leader in terms of prices for hypermarkets* • Leader Price now the lowest priced banner in the market*
Slide 44: Strengthen leadership position in premium formats
Strengthen leadership position in premium formats ● Leading position in three of the Group’s key countries with 900 stores at the end of 2014: • 540 Monoprix stores / 92 Naturalia in France • 181 Pão de Açúcar in Brazil • 71 Carulla in Colombia ● Accelerate expansion to strengthen this unique positi
Slide 45: Boost expansion in convenience formats
Boost expansion in convenience formats ● In France, overhaul concepts and re-launch franchise: Franprix, Vival, Spar, ... • A unique network owing to its density of over 6,000 stores • Positive results from business re-launch plans and store renovations • Launching of new formats in 2015 ● Internati
Slide 46: Cnova: maintain strong growth and cash flow generation
Cnova: maintain strong growth and cash flow generation ● Continue solid sales growth and GMV ● Maintain price positioning for sites and broaden their assortment ● Sharply accelerate development of marketplaces and mobile sales ● Continue to launch new international and specialized sites ● Continue t
Slide 47: Operational efficiency: improving purchasing terms
Operational efficiency: improving purchasing terms ● In France, agreement signed with Intermarché to create a shared buying group ● Internationally, the Group’s size is a major asset in business negotiations with international suppliers ● In non-food, improved purchasing synergies between Cnova, Via
Slide 48: Operational efficiency: cost control and synergies
Operational efficiency: cost control and synergies ● Proactive and highly disciplined approach to controlling costs at all banners in all of the Group’s geographic regions ● Lowering operational and structural costs: a systematic approach based on productivity benchmarks and shared processes ● Inves
Slide 49: Conclusion
Conclusion In 2015, the Group has set the following objectives: ● In France*: • an organic growth of annual sales • annual trading profit higher than the previous year ● Internationally*: • sustained organic growth of the business • higher growth in trading profit than in sales ● Overall, organic gr
Slide 50: Full Year Results 2014
FULL YEAR RESULTS 2014 February 17, 2015
Slide 51: Appendices
Activities Results Strategic outlook APPENDICES FULL YEAR RESULTS 2014 February 17, 2015
Slide 52: Change in same-store sales excluding petrol
Change in same-store sales excluding petrol France Q1 Q2 Q3 Q4 Géant hypermarkets -1.6% +2.1% -5.0% -3.0% Casino supermarkets -3.4% -1.2% -5.4% -3.2% Franprix – Leader Price -7.0% -6.5% -9.6% -6.1% Monoprix -1.2% -1.0% -3.1% -1.2% International Q1 Q2 Q3 Q4 Latin America +6.1% +10.0% +2.9% +3.6% Asia
Slide 53: Calendar effects
Calendar effects 2014 Géant Hypermarkets -0.6% Casino Supermarkets -0.3% Superettes -0.1% Monoprix -0.1% FPLP -0.4% France -0.3% International -0.1% Group -0.2% FULL YEAR RESULTS 2014 February 17, 2015 53
Slide 54: Estimated 2015 calendar effect
Estimated 2015 calendar effect 2015 T1 T2 T3 T4 2015 France Retail -0.1% -0.2% 0.0% -0.1% -0.1% Latam Retail 2.7% -2.7% 0.9% -0.5% 0.0% Asia Retail -0.3% 0.7% -0.1% 0.0% 0.1% Group 0.8% -0.9% 0.3% -0.2% 0.0% FULL YEAR RESULTS 2014 February 17, 2015 54
Slide 55: Definition of underlying profit
Definition of underlying profit ● Underlying profit corresponds to net profit from continuing operations, adjusted for the impact of other operating income and expenses (as defined in the “Significant Accounting Policies” section of the notes to the annual consolidated financial statements), non-rec
Slide 56: Reconciliation of reported profit to underlying profit
Reconciliation of reported profit to underlying profit 2013 2013 2014 2014 In €m published Adjustments underlying Adjustments underlying Trading profit 2,363 2,363 2,231 2,231 Other operating income and expenses 261 (261) (494) 494 Operating profit 2,625 (261) 2,363 1,736 494 2,231 Finance costs, ne
Slide 57: Net underlying EPS
Net underlying EPS 2013 published 2014 Variation Diluted average number of shares 112,918,625 113,038,122 +0.1% Underlying EPS (€) 5.33 4.80 -10.0% Underlying diluted EPS (€) 5.32 4.40 -17.3% ● Diluted EPS includes the effect of a potential dilution of Monoprix’s capital linked to ORAs issued 27 Dec
Slide 58: Share of profit of associates
Share of profit of associates In €m 2013 published 2014 France Retail (7) (14) Latam Retail 12 39 Latam Electronics 5 10 E-commerce 0 0 Miscellaneous & International Holdings 0 8 Mercialys 12 34 TOTAL 21 77 FULL YEAR RESULTS 2014 February 17, 2015 58
Slide 59: Underlying minority interests
Underlying minority interests* In €m 2013 published 2014 France Retail 28 (1) Latam Retail 353 329 Of which Brazil 264 240 Of which Colombia 75 78 Latam Electronics 181 283 Asia 77 75 Of which Thailand 72 71 E-commerce (6) (21) Mercialys 2 1 TOTAL 636 665 * Underlying minority interests correspond t
Slide 60: Other operating income and expenses
Other operating income and expenses In €m 2013 published 2014 Capital gain on asset disposals 58 (4) Net income related to scope operations 551 (136) Net impairment of assets (79) (53) Provisions and charges for restructuring (148) (197) Tax, legal and risk provisions and charges (86) (97) Of which
Slide 61: Cash flow statement
Cash flow statement 2013 published In €m 2014 excl. Mercialys Net financial debt at beginning of period (5,451) (5,502) Cash flow 1,956 2,015 Change in working capital requirement 445 343 Other* 665 517 Net cash flow from operating activities, after tax 3,066 2,874 Capital expenditure (1,622) (1,563
Slide 62: Simplified consolidated balance sheet
Simplified consolidated balance sheet In €m 31/12/2013 published 31/12/2014 Goodwill 10,791 11,009 Intangibles and property, plant and equipment 14,128 14,599 Investments in associates 768 897 Non-current assets 1,593 2,244 Other non-current assets 425 366 Inventories 4,693 5,311 Trade and other rec
Slide 63: Puts included in net financial debt
Puts included in net financial debt % Value Value Exercise capital on 31/12/2013 on 31/12/2014 period Franprix - Majority owned Various dates 48 43 Leader Price franchise stores Monshowroom 10 0 Various dates At any time Uruguay 15 15 2021 At any time Other 1 3 2017 TOTAL 75 62 FULL YEAR RESULTS
Slide 64: Off-balance sheet puts
Off-balance sheet puts % Value Value Exercise period capital on 31/12/2013 on 31/12/2014 Franprix - Minority owned Various dates 71 72 Leader Price franchise stores At any time Uruguay (Disco) 87 90 2021 TOTAL 158 163 (off-balance sheet) 64 FULL YEAR RESULTS 2014 February 17, 2015 64
Slide 65: Average exchange rates
Average exchange rates 2013 2014 Chg.% Argentina (ARS / EUR) 7.2859 10.7685 -32.3% Uruguay (UYP / EUR) 27.1368 30.8353 -12.0% Thailand (THB / EUR) 40.8297 43.1469 -5.4% Vietnam (VND / EUR) 27.915 28.093 -0.6% (x1,000) Colombia (COP / EUR) 2.4827 2.6526 -6.4% (x1,000) Brazil (BRL / EUR) 2.8702 3.1211
Slide 66: 2014 trading profit by main currencies
2014 trading profit by main currencies Contribution to consolidated Average exchange Group trading profit rates in 2014 in €m Brazil (BRL / EUR) 1,371 3.1211 Colombia (COP / EUR) 202 2.6526 (x1,000) Thailand (THB / EUR) 226 43.1469 * Including e-commerce FULL YEAR RESULTS 2014 February 17, 2015 66
Slide 67: Cnova shareholder structure
Cnova shareholder structure % of capital 54.8% 41.3% 43.3% 0.1% 43.3% 52.3% 43.9% Nova HoldCo Management 50.0% 3.7% Minority interests 6.6% Economic interest Cnova In % Casino Group 58.1% Minority 41.9% FULL YEAR RESULTS 2014 February 17, 2015 67
Slide 68: 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 projections and estimates and their underlying assumptions, statements regarding plans, objective
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