Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Investor Presentation (November 2022)
40 slides from Casino, Guichard-perrachon Sa's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
Investor Presentation - November 2022
Slide 2: Q3 2022 highlights – France
Q3 2022 highlights – France Continued sequential improvement in net sales » Same-store net sales: up +3.9% yoy › Sequential improvement on Q2 2022 (+3.4%) and on Q1 2022 (-1.6%) » Parisian banners: up +4.8% yoy › Sharp acceleration in same-store sales, in a market shaped by the return of tourists »
Slide 3: Q3 2022 highlights - France
Q3 2022 highlights - France EBITDA1: +26% yoy » EBITDA1: €184m (+€38m vs. €146m in Q3 2021) › +26% increase driven by sales growth and cost control » Net debt: +€415m improvement of customary seasonal increase › In Q3 2022, the increase in net debt due to customary seasonal trends was -€91m compared
Slide 4: Q3 2022 highlights - Latin America
Q3 2022 highlights - Latin America Continued strong growth » Net sales: up +23% yoy › +9% at constant exchange rates, and +11% on a same-store basis » EBITDA1: +16% › €224m (vs. €193m in Q3 2021) » GPA hypermarket conversion to Assaí banner: 19 to-date › Assaí target increased to 45 stores YE 2022 (
Slide 5: Q3 2022 highlights - Latin America
Q3 2022 highlights - Latin America Very good performance from Assaí and Grupo Éxito » Assaí1 organic growth: up +29% yoy › Solid same-store net sales (+9%) › Excellent performance from the 44 stores opened in the preceding 12 months › Q3 2022 converted stores exceed expectations, further strengtheni
Slide 6: France
France 6
Slide 7: 1. Retail banners – France
1. Retail banners – France Return to net sales growth » Return to growth for all banners Same-store net sales growth France Retail 3.4% 3.9% » Ramp-up of expansion, with 527 stores opened in convenience formats over 9 months (Franprix, Spar, Vival, etc.) and several Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q
Slide 8: 1. Retail banners – France
1. Retail banners – France Adapting the sales strategy » Casino Group banners have adapted their sales strategy to the inflationary environment to support purchasing power › Strong discounts on a weekly selection of products › Promotion of private-label brands, including Leader Price in Supermarkets
Slide 9: 2. Cdiscount
2. Cdiscount Business mix improvement strategy » Strategy: focus on higher margin marketplace › Cdiscount marketplace GMV up +7% compared to pre-Covid period › Marketplace GMV reaches 52% of total GMV (up +9 pts year on year and +12 pts versus 2019) › Marketplace revenues increased +26% compared wit
Slide 10: 3. Corporate social responsibility
3. Corporate social responsibility Promoting more responsible retail » Casino ranked no. 1 retailer and no. 8 global company in Moody's ESG ranking1 » Proportion of women on Executive Committee: 40% » Renewal of partnership in support of food banks and of commitments against LGBT+ discrimination » P
Slide 11: Q3 2022 Net debt management
Q3 2022 Net debt management 11
Slide 12: Disposal plan at Sept 2022
Disposal plan at 30 Sept 2022 Total asset disposals of €4.1bn out of a €4.5bn target 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
Slide 13: Q3 2022 net debt
Q3 2022 net debt France excluding GreenYellow » €415m improvement in the customary seasonal increase in Q3 2022 net debt due to: › €276m improvement in cash flow excluding disposal plan (-€230m in Q3 2022 vs. -€506m in Q3 2021) due to improved EBITDA, changes in working capital and capex › €140m fro
Slide 14: Bond debt – France
Bond debt – France Continued bond buybacks Maturities of bond debt in France at 14 November 2022: €4.4bn1 (vs €5.1bn at end 2021) In €m Unsecured At 31 December 2021 Secured 800 1425 558 314 220 653 529 460 525 357 400 36 juin-22 June 2022 Jan. 2023 Jan. 2024 Mar. 2024 Feb. 2025 Aug. 2025 Jan. 2026
Slide 15: Liquidity position – France
Liquidity position – France The Group had €2.5bn liquidity position at 30 September 2022 » At 30 September 2022, the Group had in France: › €403m1 in cash and cash equivalents › €77.5m in the secured segregated €2.5bn liquidity position account2 at 30 September 2022 » At that date, the Group also ha
Slide 16: Financial covenants – France
Financial covenants – France RCF financial covenants at 30 September 2022 4.09x 3.5x Debt headroom: EBITDA headroom: €605m 2.72x €300m 2.5x Secured gross Limit EBITDA after lease Minimum debt/EBITDA after payments/Net finance lease payments 1 costs » Ratio of secured gross debt to EBITDA (after leas
Slide 17: Outlook – 2022
Outlook – 2022 Outlook - France » Casino Group’s priority remains growth and maintaining a good level of profitability to ensure increased cash flow generation. › Growth is sustained by an acceleration among the Parisian banners in Q3 and the continuation of the expansion strategy (800 stores to be
Slide 18: H1 2022 Financial results
H1 2022 Financial results 18
Slide 19: H1 2022 Key figures
H1 2022 Key figures Net sales, EBITDA and trading profit In €m H1 2021 H1 2022 Change Change at CER Net sales – Group 14,480 15,903 +9.8% +3.3% o/w France Retail 6,863 6,935 +1.0% +1.0% o/w Cdiscount 947 795 -16.1% -16.1% Gross merchandise volume 1,991 1,793 -9.9% -9.9% o/w Latam 6,670 8,173 +22.5%
Slide 20: Results – France Retail
Results – France Retail EBITDA France Retail down -5.2% over H1 2022 In €m – France Retail Change H1 2021 H1 2022 over 1 year Net sales 6,863 6,935 +1.0%1 EBITDA 569 539 -5.2% EBITDA margin (%) 8.3% 7.8% -52 bps o/w Retail banners2 539 478 -11.3% EBITDA margin (%) 7.9% 6.9% -96 bps o/w Property deve
Slide 21: Results – E-commerce (Cdiscount)
Results – E-commerce (Cdiscount) Stable EBITDA compared to pre-pandemic levels Change Change In €m – E-commerce (Cdiscount) H1 2019 H1 2021 H1 2022 over 1 year over 3 years Gross merchandise volume 1,754 1,991 1,793 -9.9% +2.3% o/w marketplace sales 562 747 668 -10.6% +18.8% o/w direct sales 907 865
Slide 22: Results – Latin America
Results – Latin America Excellent performance from Assaí and Grupo Éxito Change at In €m H1 2021 H1 2022 Change CER Consolidated net sales 6,670 8,173 +22.5% +8.3% o/w Grupo Éxito 1,648 2,108 +27.9% +23.8% o/w Assaí 3,007 4,453 +48.1% +26.6% o/w GPA Brazil 2,014 1,613 -19.9% -31.5% EBITDA excl. tax
Slide 23: Underlying net profit (loss), Group share
Underlying net profit (loss), Group share Underlying net profit (loss), Group share impacted by higher financial expenses in Latin America Underlying net profit (loss), Group share In €m H1 2021 H1 2022 Trading profit and share of profit of equity-accounted investees 469 385 Financial expenses (397)
Slide 24: H1 2022 change in net debt – France excl. GreenYellow
H1 2022 change in net debt – France excl. GreenYellow Improvement of +€374m in the change in net debt versus H1 2021 In €m – continuing operations France (incl. Cdiscount), excl. GreenYellow H1 2021 H1 2022 EBITDA 589 521 (-) lease payments (325) (303) EBITDA after lease payments 264 219 (-) non-rec
Slide 25: H1 2022 net debt
H1 2022 net debt Group net debt Net debt before IFRS 5 H1 2021 H1 2022 In €m France (4,577) (5,088) o/w France Retail excl. GreenYellow (4,205) (4,589) o/w E-commerce (Cdiscount) (428) (499) o/w GreenYellow 57 0 Latam Retail (1,767) (2,377) o/w GPA Brazil (778) (726) o/w Assaí (851) (1,493) o/w Grup
Slide 26: Appendices
Appendices 26
Slide 27: ESG ratings
Appendices ESG ratings Indices Rating Scale Dow Jones Sustainability Index 70/100 0 to 100 FTSE 4.1/5 0 to 5 CDP Climate Scoring B D- to A Moody’s 74/100 0 to 100 Sustainalytics 72/100 0 to 100 MSCI AA CCC to AAA Gaia 75/100 0 to 100 » TCFD supporter » Naturalia was awarded B Corp certification » AF
Slide 28: Underlying diluted earnings per share
Appendices Underlying diluted earnings per share Underlying diluted earnings per share H1 2021 H1 2022 Weighted average number of ordinary shares before 107,837,405 107,991,520 dilution Underlying net profit, Group share (in €m) (75) (102) Dividends payable on perpetual deeply-subordinated (36) (43)
Slide 29: Non-recurring expenses
Appendices Non-recurring expenses Other operating income and expenses H1 2021 H1 2022 Change In €m Group 10 (284) (294) o/w cash costs (122) (278) (156) o/w non-cash costs 133 (5) (138) Latam (34) (129) (95) France (France Retail + E-commerce) 44 (155) (199) Cash costs (excl. asset disposal plan and
Slide 30: Underlying net financial expense
Appendices Underlying net financial expense H1 2021 H1 2022 Interest Interest expense Total net expense Total net Net financial Lease financial Net financial Lease financial In €m expense liabilities expense expense liabilities expense France Retail (184) (75) (259) (119) (72) (190) E-commerce (16)
Slide 31: Reconciliation of reported net profit to underlying net profit
Appendices Reconciliation of reported net profit to underlying net profit (continuing operations) H1 2021 restated H1 2022 In €m H1 2021 Adjustments underlying H1 2022 Adjustments underlying Trading profit 440 0 440 380 0 380 Other operating income and 10 (10) 0 (284) 284 0 expenses Operating profit
Slide 32: Underlying non-controlling interests
Appendices Underlying non-controlling interests In €m H1 2021 H1 2022 France Retail 5 3 Latam Retail 92 44 o/w Grupo Éxito 30 31 o/w GPA and Assaí 62 13 E-commerce (Cdiscount) (4) (17) Total 93 30 Investor Presentation – November 2022 32
Slide 33: Consolidated net profit (loss)
Appendices Consolidated net profit (loss) In €m H1 2021 H1 2022 Net profit (loss) before tax 52 (389) Income taxes (44) 112 Equity-accounted investees 29 5 Net profit (loss) from continuing operations 37 (272) o/w Group share (38) (248) o/w attributable to non-controlling interests 75 (24) Net profi
Slide 34: Share of profit of equity-accounted investees
Appendices Share of profit of equity-accounted investees In €m H1 2021 H1 2022 France Retail 19 3 o/w Mercialys 11 (1) o/w Franprix 0 (0) o/w Other 8 5 Latam Retail 10 2 Total 29 5 Investor Presentation – November 2022 34
Slide 35: Breakdown of consolidated net debt after IFRS at June 2022
Appendices Breakdown of consolidated net debt after IFRS 5 at 30 June 2022 Cash and cash IFRS 5 Net debt In €m Gross debt equivalents impact after IFRS 5 France Retail (4,979) 390 778 (3,811) E-commerce (Cdiscount) (514) 15 0 (499) Sub-total France (5,493) 405 778 (4,311) Latam Retail (3,660) 1,283
Slide 36: Net debt June 2022
Appendices Net debt 30 June 2022 Net debt Net debt before Net debt after IFRS 5 In €m IFRS 5 IFRS 5 France (5,088) 778 (4,311) o/w France Retail excl. (4,589) 778 (3,811) GreenYellow o/w E-commerce (Cdiscount) (499) 0 (499) o/w GreenYellow 0 0 0 Latam Retail (2,377) 43 (2,333) o/w GPA Brazil (726) 1
Slide 37: Consolidated income statement
Appendices Consolidated income statement In €m H1 2021 H1 2022 CONTINUING OPERATIONS Net sales 14,480 15,903 Other revenue 224 225 Total revenue 14,704 16,128 Cost of goods sold (11,071) (12,360) Gross margin 3,633 3,768 Selling expenses (2,532) (2,645) General and administrative expenses (660) (743
Slide 38: Consolidated statement of financial position
Appendices Consolidated statement of financial position In €m June 2021 June 2022 Goodwill 6,667 7,017 Property, plant and equipment, intangible assets and investment property 7,059 7,492 Right-of-use assets 4,748 5,074 Investments in equity-accounted investees 201 221 Deferred tax assets 1,195 1,46
Slide 39: Puts included in the statement of financial position
Appendices Puts included in the statement of financial position % Value at Value at Exercise In €m capital 31/12/2021 30/06/2022 period Majority-held Franprix 45 66 Various dates franchised stores Monoprix 3 2 Various dates Casino Participations France 26 26 Various dates Cnova NCI puts 1 1 Q4 2022
Slide 40: Disclaimer
Appendices 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,
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