Dino Polska Sa · GPW:DNP
Dino Polska Sa — Investor Presentation (May 2017)
26 slides from Dino Polska Sa's investor presentation, May 2017
Slide 1: Company presentation
Company presentation May 2017
Slide 2: Disclaimer
Disclaimer Neither this presentation (the “Presentation”) nor any copy of it nor the information contained herein being issued, and nor may this Presentation nor any copy of it nor the information contained herein be distributed directly or indirectly to or into, the United States, Canada, Australia
Slide 3: Dino today
Dino today Foundation phase Expansion phase • One of the leading Polish food retail chains Net sales area (’000 m2) 20 25 32 50 81 119 151 192 238 • 628(1) stores located No. of stores 628 mainly in Western Poland 511 • Track record of 410 rapid growth 324 234 • No. 1 fastest-growing 154 chain and 2
Slide 4: Dino at a glance: fast growth, increasing scale, improving margins
Dino at a glance: fast growth, increasing scale, improving margins 2016 LFL(2) Sales CAGR sales growth over last 3 years(1) Selling space CAGR EBITDA CAGR over last 3 years(1) over last 3 years(1),(4),(8) 11.3% 26% Growth 25% 40% Attractive 2016 ROIC(9) 30.3% PLN +1.6pp 3.4bn PLN FY 2016 288m +0.9pp
Slide 5: Dino's winning concept
Dino's winning concept Full Operational Control & Quality 1 2 • 628 mainly owned locations(1) • regional, high-traffic locations • approx. 5,000 SKUs Location & real estate Product • stores ownership • fresh products • proximity and parking • Branded products • proximity format – approx. 400 m2 • ow
Slide 6: Investment highlights
Investment highlights 1 2 Solid macroeconomic Leading position in environment in the attractive and Poland with favorable growing proximity trends in retail supermarket format 8 3 Proven rapid Highly incentivised network roll-out management team, capabilities and real with Dino since 2002 estate own
Slide 7: Strong macro trends in Poland favouring Dino’s format
1 Strong macro trends in Poland favouring Dino’s format The largest economy in the CEE region Attractive GDP forecast Stable fiscal environment Efficient labour market Population Nominal GDP and consumer spending GDP CAGR 2017–19E (%) Public debt % of GDP (2016(3)) Unemployment rate 2016 (%) across
Slide 8: Key consumer trends and food retail formats in Poland
2 Key consumer trends and food retail formats in Poland Impact on store development Proximity supermarket is one of the most attractive segments Proximity supermarkets' Large within the Polish food retail market (1) Hypermarkets Discounters Convenience strengths supermarkets Busy lifestyle Easy and
Slide 9: Leading position in the attractive proximity format
2 Leading position in the attractive proximity format The fastest growing proximity chain in Poland Sales CAGR 2010-2015 37% Fastest growing 1st proximity chain(1) 12% 8% (4%) (2) (3) Dino Delikatesy Centrum Polomarket Other Sales 2015 (PLN bn) 4.9 3.3 2.6 2.4 Largest proximity 2nd chain by sales an
Slide 10: Dino’s position within the broader food retail market
2 Dino’s position within the broader food retail market One of the largest and the fastest growing food retailers among the Top 20 players (1) in Poland Top 10 players CAGR of sales value 2010-2015 (%) 80 63 60 Fastest growing 37 2nd food retailer 40 20 21 20 19 18 16 15 15 12 0 (5) Legend(6) Hyperm
Slide 11: Delivering consistently superior LFL growth
2 Delivering consistently superior LFL growth Annual Dino ready to take advantage of the consumer trends with its: 2.6 4.3 3.7 0.9 0.0 (0.9) (0.6) Inflation (deflation) % Efficient logistics Flexibility to make Annual 2.7 5.4 4.3 2.0 (0.9) (1.7) 0.8 Convenient network capable of quick adjustments Fo
Slide 12: Proven roll-out capabilities based on store ownership
3 Proven roll-out capabilities based on store ownership 2011: 154 stores, 1 distribution center 2013: 324 stores, 2 distribution centers 2016: 628 stores, 3 distribution centers – further roll-out W Szczecin Gdańsk Jastrowie Białystok Krotoszyn Krotoszyn Piotrków Trybunalski Poznań Warsaw Łódź Kroto
Slide 13: Clear benefits from real estate ownership
3 Clear benefits from real estate ownership 1 Greater flexibility in selecting the most attractive sites 2 Makes smaller towns (villages) accessible for Dino 3 Consistent store format 4 Efficient distribution network and store design 5 Attractive roll-out economics with high ROIC 6 Lack of risk conn
Slide 14: Differentiated offering focused on fresh and branded products at competitive prices
Differentiated offering focused on fresh and 4 branded products at competitive prices Wide branded offering focused on fresh products … … with own meat processing plant Product split by revenue (2016)1 • Agro-Rydzyna plant is conveniently located in Kłoda, close to Non-food Dino’s headquarters in Kr
Slide 15: Efficient cooperation with suppliers enables competitive prices and attractive margins
Efficient cooperation with suppliers enables competitive 4 prices and attractive margins Concentration of suppliers(1) ✓ Close and long-lasting cooperation (2016) with suppliers ✓ Majority of offering is sourced 17% directly from producers or their Top 10 main representatives, instead of suppliers w
Slide 16: Lean, cost efficient and scalable business model
5 Lean, cost efficient and scalable business model Well-invested operational backbone supporting network expansion and driving cost efficiencies Dino's distribution centres Increasing economies of scale Significant operational leverage Gross margin (%) EBITDA margin (1) (%) Jastrowie Total space: 23
Slide 17: Strategy: roll-out + superior LFL + margin improvement
6 Strategy: roll-out + superior LFL + margin improvement Strategic plan to exceed 1,200 stores by the end of 2020 (1) Over 1,200 Strong pipeline of secured locations stores by the end of 2020 Pipeline Actual net openings 628 Stores(2) 338 280 197 86 101 117 2016 '17F '18F '19F '20F end'20F 1 Dec-14
Slide 18: Strong financial performance
7 Strong financial performance Unparalleled growth Improving margins Stable selling expenses and G&A costs Number of stores in relation to revenue2 22.9% (% of revenue) 22.6% 22.0% +0.9 p.p. 628 15.40% 15.12% 15.01% 511 410 2014 2015 2016 1.49% 1.37% 1.24% Revenue (PLNm) 2014 2015 2016 3,370 2,590 8
Slide 19: Effective working capital management and strong operating cash flow
Effective working capital management 7 and strong operating cash flow NWC split(1) EBITDA conversion into OCF OCF covering significant share of CapEx(6) needs (days) (PLNm, %) (PLNm, %) Total NWC (31) (36) (38) 84% 81% 79% 324 3 3 4 288 325 189 245 40 39 39 245 210 (199) (278) 188 (382) (75) (78) (8
Slide 20: Strong balance sheet
7 Strong balance sheet Net debt structure Net debt/EBITDA(1), (2) Improving debt service (PLNm) 2.6x 6.6% 496 380 429 5.4% 5.3% 2.0x 110 1.7x 102 7.0x 118 6.4x 362 452 266 4.0x (24) (34) (66) 2014 2015 2016 2014 2015 2016 2014 2015 2016 Cash and cash equivalents (2), (3) Interest coverage ratio Curr
Slide 21: Investment highlights
Investment highlights 1 2 Solid macroeconomic Leading position in environment in the attractive and Poland with favorable growing proximity trends in retail supermarket format 8 3 Proven rapid Highly incentivised network roll-out management team, capabilities and real with Dino since 2002 estate own
Slide 22: Additional information
hajblize) Ciebie Additional information
Slide 23: 2014-2016 consolidated profit and loss account
2014-2016 consolidated profit and loss account ('000 PLN) 2014 2015 2016 Sales 2,107,984 2,589,576 3,369,517 Cost of sales -1,644,080 -2,004,710 -2,599,005 Gross profit 463,904 584,866 770,512 Other operating income 1,522 3,120 2,616 Selling and marketing costs -324,634 -391,580 -505,855 Administrat
Slide 24: 2014-2016 consolidated balance sheet
2014-2016 consolidated balance sheet ('000 PLN) 2014 2015 2016 ('000 PLN) 2014 2015 2016 Property, plant and Equity 410,073 532,235 683,476 798,948 1 024 199 1 337 207 equipment Share capital 9,804 9,804 9,804 Intangible assets 90,700 92,253 93,072 Reserve capital 316,048 393,019 510,720 Other non-f
Slide 25: 2014-2016 consolidated cash flow
2014-2016 consolidated cash flow ('000 PLN) 2014 2015 2016 ('000 PLN) 2014 2015 2016 Cash flows from operating activities Cash flows from investing activities Profit before tax 79,293 135,231 186,455 Proceeds from sale of property, plant and 374 925 1,112 Adjustments for: 109,185 110,163 137,868 equ
Slide 26: Thank you
Thank you Calendar: 29 August 2017 – consolidated report for H1 2017 14 November 2017 – consolidated report for Q3 2017 Contact: Grzegorz Uraziński, Head of Investor Relations Phone: +48 695 234 561 ir@marketdino.pl | www.grupadino.pl