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Casino, Guichard-perrachon Sa — H1 2011 Earnings Presentation

62 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 28, 2011

  1. Slide 1: 2011 First-Half Results

    28 July 2011 2011First-Half RESULTS

  2. Slide 2: Preliminary Notes

    PRELIMINARY NOTES  The financial statements for the six months ended 30 June 2011 approved by the Board of Directors on 27 July 2011 have been reviewed by the auditors  All of the figures in this presentation concern continuing operations, unless otherwise specified  Organic growth rates are base

  3. Slide 3: First-Half 2011 Key Figures

    FIRST-HALF 2011 KEY FIGURES (Continuing operations) % change vs H1 2010 Consolidated net sales €16,144m +18.8% EBITDA €929m +7.1% EBITDA margin 5.8% vs 6.4% in H1 2010 Trading profit €571m +5.6% Trading margin 3.5% vs 4.0% in H1 2010 Underlying attributable profit €178m vs €208m -14.3% Net financial

  4. Slide 4: A semester driven by faster organic growth

    A SEMESTER DRIVEN BY FASTER ORGANIC GROWTH TWO SUCCESSFUL ACQUISITIONS AND INCREASED TRADING PROFIT  Faster organic growth (excluding petrol) in France and in international markets ► In France: 3.2% in Q2 (after 1.2% in Q1 and 0.6% in 2010) ► In international markets: 15.1% in Q2 (after 10.5% in Q1

  5. Slide 5: Second-Quarter Performance

    SECOND-QUARTER PERFORMANCE Results Outlook & Conclusion Appendices

  6. Slide 6: Second quarter consolidated sales up a very strong 18.8%

    SECOND QUARTER CONSOLIDATED SALES UP A VERY STRONG 18.8% Analysis of Growth in Sales (in € millions) Organic Growth (excluding petrol) Changes Currency Petrol Organic growth in scope effect (excl. petrol) +18.8% +7.8% +7.8% +11.8% +4.7% -1.4% +0.6% +3.9% 8,294 6,980 2010 Q1 2011 Q2 2011 Q2 2010 Q2 2

  7. Slide 7: France: a very good second quarter

    FRANCE: A VERY GOOD SECOND QUARTER Sales Growth in France Organic Growth by Format (excluding petrol) Q2 2011 vs Q2 2010 Organic (excl. petrol) +7.3% Casino France +16.2% Reported +4.5% +3.2% +1.7% +5.0% +0.6% +1.2% +3.4% +2.5% +1.8% +1.3% 0% 2010 Q1 2011 Q2 2011 FP/LP Monoprix Casino Superettes Géa

  8. Slide 8: France: higher Group market share in food

    FRANCE: HIGHER GROUP MARKET SHARE IN FOOD Casino Group market share 13.0 +0.2 12.8 P1-P6 (Cumulative)  The Group met its goal of increasing its market share, with a 0.2-point gain since the beginning of 2011  Stable Géant Casino and Leader Price market shares, after carefully managed price investm

  9. Slide 9: Robust performances by Monoprix and Casino Supermarkets

    ROBUST PERFORMANCES BY MONOPRIX AND CASINO SUPERMARKETS  Sustained sales growth at Monoprix: up 5% ► Increased footfall and average basket: +3.1% same-store growth ► Successful new “M” brand packaging in food ► Expansion in line with annual objectives: 1 Citymarché, 6 Monop’ and 1 Naturalia opened

  10. Slide 10: Growth of convenience formats

    GROWTH OF CONVENIENCE FORMATS  0.8% organic sales growth at Franprix: ► Significant contribution from expansion to growth: 23 openings in H1 ► Same-store sales down 4.7%, due primarily to Sunday afternoon closing ► On-going deployment of the new concept: 31 stores renovated in the first half  Stab

  11. Slide 11: Leader Price: increased price competitiveness

    LEADER PRICE: INCREASED PRICE COMPETITIVENESS  Same-store sales up 1.6%, reflecting firm footfall in the second quarter  Total sales up 4.1%, led by expansion (14 openings in the first half)  Stable Market share in the first half  Selective price cuts and “Le Prix Gagnant” brand relaunched, pavi

  12. Slide 12: Géant: improvement in food sales confirmed

    GÉANT: IMPROVEMENT IN FOOD SALES CONFIRMED  Same-store sales up 1% (excluding petrol) in Q2, Food with an increase in the average basket % change in same-store sales  Food sales up 3.5% +3.5% FY 2010 ► Improved price positioning in H2 2010 maintained Q1 2011 in H1 2011 Q2 2011  Stable Géant marke

  13. Slide 13: E-commerce: an excellent Q2 for Cdiscount

    E-COMMERCE: AN EXCELLENT Q2 FOR CDISCOUNT  Faster sales growth in Q2 ► Good performances across all categories and faster growth in electronics and household goods Organic Growth ► Increased market share for technical goods (IT, high-tech and white goods) +16.2% ► Very good sales period +12.2% ► Su

  14. Slide 14: Mercialys: a unique tool to energise our shopping centres

    MERCIALYS: A UNIQUE TOOL TO ENERGISE OUR SHOPPING CENTRES  Sustained growth in rental revenues, up 9.3%* Marseille La Valentine  Fast pace of renovation and optimisation of Alcudia/Esprit Voisin sites: ► 7 deliveries in the first half (46,000 sq.m.**) ► 14 deliveries scheduled over the year (vs. 7

  15. Slide 15: International: continued strong growth in Q2

    INTERNATIONAL: CONTINUED STRONG GROWTH IN Q2 Organic Growth in International Sales Sales Growth 12.8% 11.7% Organic +44.1% 11.2% +38.2% 10.0% 10.8% Reported +15.2% 4.9% +10.5% 2006 2007 2008 2009 2010 H1 2011 Q1 2011 Q2 2011  Development at a sustained and regular place  Faster organic growth in Q

  16. Slide 16: Exito: a very dynamic second quarter

    EXITO: A VERY DYNAMIC SECOND QUARTER  Sharp rise in same-store sales, up +14.8%* ► Innovative marketing strategy around the “Exito” leading brand ► Successful “Aniversario Exito” promotion campaign, postponed to Q2 in 2011  Ramp-up of expansion ► 24 stores opened in H1 including 1 hypermarket and

  17. Slide 17: GPA: continued sustained growth across all three businesses

    GPA: CONTINUED SUSTAINED GROWTH ACROSS ALL THREE BUSINESSES  Double-digit same-store growth: up 11.0%*  In food, same-store sales up 9.3%*  In electronics, Globex same-store sales up 17.6%* despite high prior-period comparatives (World Cup) ► Very strong sales dynamic ► Very dynamic e-commerce bu

  18. Slide 18: Big C Thailand: very strong momentum

    BIG C THAILAND: VERY STRONG MOMENTUM  Sharp rise in total sales lifted by the consolidation of Carrefour Thailand  Satisfying organic growth ► Ongoing deployment of new formats (in particular opening of 10 Mini Big C stores in H1)  Carrefour stores integration progressing according to Synergies p

  19. Slide 19: Very strong growth in Vietnam

    VERY STRONG GROWTH IN VIETNAM  Organic growth at a very high (52.2%) led by: ► Very dynamic same-store sales ► Significant contribution from expansion (impact of the 5 hypermarkets opened in 2010)  Launch of a new convenience store concept: New Cho ► 2 openings in the first half 2011 FIRST-HALF RE

  20. Slide 20: Results

    Second-Quarter Performance RESULTS Outlook & Conclusion Appendices

  21. Slide 21: Preliminary notes: changes in scope of consolidation

    PRELIMINARY NOTES  The main changes in scope of consolidation are as follows: ► Casas Bahia consolidated within GPA from 1 November 2010 ► Carrefour Thailand’s operations consolidated within Big C from 7 January 2011 ► Three master franchisees fully consolidated within Franprix-Leader Price from 1

  22. Slide 22: Growth in the main indicators

    GROWTH IN THE MAIN INDICATORS Continuing operations Change Change in € millions H1 2010 H1 2011 (reported) (organic) Total business volume* 19,699 24,582 +24.8% Net sales 13,589 16,144 +18.8% +7.1% Sales margin 3,445 4,126 +19.8% As a % of net sales 25.3% 25.6% +21 bp EBITDA 868 929 +7.1% -5.2% EBIT

  23. Slide 23: EBITDA up 7.1%

    EBITDA UP 7.1% Analysis of Growth in EBITDA (€m) Changes Currency Organic in scope effect +11.7% +0.5% -5.2% +7.1% 868 929 H1 2010 H1 2011  Changes in scope correspond mainly to the consolidation of Casas Bahia within GPA and the consolidation of Carrefour Thailand operations by Big C  The currenc

  24. Slide 24: Increase in EBITDA led by accelerated development in international markets

    INCREASE IN EBITDA LED BY ACCELERATED DEVELOPMENT IN INTERNATIONAL MARKETS EBITDA – (€m) EBITDA Margin 929 868 +43.5% 5.8% International 314 450 6.4% 5.3% France 554 -13.5% 479 H1 2010 H1 2011 Group France International  Steep rise in EBITDA of international subsidiaries ► Sustained organic growth

  25. Slide 25: In France, gradual margin improvement

    IN FRANCE, GRADUAL MARGIN IMPROVEMENT AFTER A START OF THE YEAR IMPACTED BY HIGHER PURCHASING COSTS Trading profit Change in margin (in € millions) H1 2010 Margin H1 2011 Margin (organic) Casino France 163 2.9% 156 2.7% -17 bp Franprix-Leader Price 116 5.7% 58 2.6% -339 bp Monoprix 68 7.2% 57 5.8% -

  26. Slide 26: Improved margin in international markets

    IMPROVED MARGIN IN INTERNATIONAL MARKETS Change in margin in € millions H1 2010 Margin H1 2011 Margin (organic) South America 132 3.7% 197 3.8% 0 bp Asia 55 5.7% 96 6.7% +36 bp Other regions 8 n/a 8 n/a INTERNATIONAL 194 3.9% 301 4.3% +7 bp  Favorable margin evolution in South America ► Tangible ma

  27. Slide 27: Change in attributable profit

    CHANGE IN ATTRIBUTABLE PROFIT Continuing operations In € millions H1 2010 H1 2011 Change Trading profit 541 571 +5.6% Other operating income and expense (56) (125) Finance costs, net (154) (214) Other financial income and expense (15) (9) Profit before tax 316 222 Income tax expense (105) (52) Share

  28. Slide 28: Stable finance costs excluding impact of Brazil and Thailand

    STABLE FINANCE COSTS EXCLUDING IMPACT OF BRAZIL AND THAILAND in € millions H1 2010 H1 2011 France (113) (117) Brazil (33) (83) Thailand (0) (11) Other International (8) (3) TOTAL (154) (214) 2011 FIRST-HALF RESULTS 28

  29. Slide 29: Other operating income and expenses affected by exceptional tax charge in Colombia

    H1 2011 OTHER OPERATING INCOME AND EXPENSES AFFECTED BY EXCEPTIONAL TAX CHARGE IN COLOMBIA in € millions H1 2010 H1 2011 Provisions for Restructuring (36) (42) Provisions for litigation & contingencies (25) (5) Tax on assets in Colombia (72) Other (disposal gains and losses, 6 (7) asset impairments,

  30. Slide 30: Improvement in working capital requirement

    IMPROVEMENT IN WORKING CAPITAL REQUIREMENT In € millions H1 H1 2010 2011 Change in “goods” WCR  Lower seasonal outflow of funds in France and in international markets (494) (584) Change in “non-goods” WCR  Lower financing needs in the property development and consumer credit businesses (185) (317)

  31. Slide 31: A first-half shaped by exceptional external growth operations

    A FIRST-HALF SHAPED BY EXCEPTIONAL EXTERNAL GROWTH OPERATIONS Other Acquisitions In € millions (6,783) Dividends (218) paid Capex Change (1,627) in WCR 498 (391) (521) (3,845) Cash Flow (678) Net financial Net financial debt at debt at 31 Dec. 2010 30 June 2011  Net debt at 30 June was impacted by

  32. Slide 32: Objectives for asset disposals and capital increases raised to over €1 billion

    OBJECTIVES FOR ASSET DISPOSALS & CAPITAL INCREASES RAISED TO OVER €1 BILLION, OF WHICH €680 MILLION ALREADY AGREED  Asset disposals & capital increases programme increased to over €1bn (vs €700m), of which €680m already agreed (mature property assets, Exito capital increase)  In the second half, t

  33. Slide 33: Improved debt profile following May 2011 bond issue

    IMPROVED DEBT PROFILE FOLLOWING MAY 2011 BOND ISSUE At 30 June 2011 (in €m) Bond Maturities(2) (in €m) Before and After May 2011 Bond Issue 1,753 Before exchange After exchange 1,264 888 850 719 750 677 604 578 578 544 508 210 Cash Confirmed lines 2011 2012 2013 2014 2015 2016 2017 2018 2021 of cred

  34. Slide 34: Market values of listed subsidiaries

    MARKET VALUES OF LISTED SUBSIDIARIES Net financial Contribution Share price at Market value % Casino’s Listed company debt* at 30 to Group EV 26 July 2011 (100%, €m) owned share (€m) June 2011 (€m) (€m) Mercialys € 29.5 2,714 51.1% 1,387 (11) 1,376 GPA R$ 65.1** 7,597 43.2% 3,282 394 3,676 (Brazil)

  35. Slide 35: Outlook & Conclusion

    Second-Quarter Performance Results OUTLOOK & CONCLUSION Appendices

  36. Slide 36: A first-half characterised by the Group's faster pace of transformation

    A FIRST-HALF CHARACTERISED BY THE GROUP FASTER PACE OF TRANSFORMATION  Creation of a platform for growth around Exito in Hispanic Latin America  Confirmation of Casino’s long-term commitment to GPA in Brazil  In Southeast Asia, consolidation of leadership in Thailand (acquisition of Carrefour sto

  37. Slide 37: Creation of a platform for growth around Exito in Hispanic Latin America

    CREATION OF A PLATFORM FOR GROWTH AROUND EXITO IN HISPANIC LATIN AMERICA  Acquisition from Exito of Casino’s stake in Disco and Devoto ► Disco and Devoto are Uruguay’s leading retailers with 53 stores and combined sales of over €500m in 2011, offering high growth potential (geographic expansion, sh

  38. Slide 38: Confirmation of Casino's long-term commitment in Brazil

    CONFIRMATION OF CASINO’S LONG-TERM COMMITMENT IN BRAZIL  In 2011, change in dimension of GPA thanks to the Casas Bahia/Ponto Frio merger ► The new entity (Globex) is the leader with its two banners in the fast-growing electronics market ► Synergies implemented according to plan (purchasing, support

  39. Slide 39: In Southeast Asia, consolidation of leadership in Thailand and Vietnam

    IN SOUTHEAST ASIA, CONSOLIDATION OF LEADERSHIP IN THAILAND AND VIETNAM  2011 represents a milestone in the building of Big C’s leadership position in Thailand ► Successful integration of Carrefour – At end-2011, the new entity will have 108 hypermarkets (around 883,600 square metres) and 115 shoppi

  40. Slide 40: In France, increase market share by reinforcing banners' competitiveness

    IN FRANCE, THE GROUP AIMS TO INCREASE MARKET SHARE BY REINFORCING ITS BANNERS COMPETITIVENESS  Strengthening Géant competitiveness ► Géant’s food business has been well oriented since the start of the year ► The banner’s prices are now competitive compared with competitors ► The priorities in the s

  41. Slide 41: In France, ongoing development of e-commerce and promising formats

    IN FRANCE, ONGOING DEVELOPMENT OF THE E-COMMERCE BUSINESS AND EXPANSION IN PROMISING FORMATS  On-going development of the e-commerce business, a growth driver in the non-food segment ► With sales up 16.2% in Q2, Cdiscount continues to outperform its main competitors ► The second half will be charac

  42. Slide 42: Ongoing operating and financial excellence plans

    ONGOING OPERATING AND FINANCIAL EXCELLENCE PLANS  Cost reduction objectives confirmed ► Creation of a shared services centre for support functions (IT, logistics, etc.) of the business units in France ► Improved operating efficiency across all business units in France and in international markets (

  43. Slide 43: Confirmation of Group objectives

    CONFIRMATION OF GROUP OBJECTIVES  The Group’s first-half performance confirms the efficiency of its business model ► A growth profile strengthened by expanded positions in emerging markets, with leading brands viewed as “local” by consumers ► A favourable mix of activities in France  The Group is

  44. Slide 44: Appendices

    Second-Quarter Performance Results Outlook & Conclusion APPENDICES

  45. Slide 45: Simplified consolidated balance sheet

    SIMPLIFIED CONSOLIDATED BALANCE SHEET In € million 30/06/2010(1) 31/12/2010 30/06/2011 Goodwill 6,720 6,654 7,679 Intangibles and property, plant & equipment 8,100 8,656 9,087 Investments in associates 200 161 102 Non-current financial assets** 492 648 840 Non-current derivative instruments* 231 150

  46. Slide 46: Cash flow statement

    CASH FLOW STATEMENT In € million First-half 2010 First-half 2011 Net debt at beginning of period (4,072) (3,845) Cash flow 583 498 Change in working capital requirement (901) (678) Other* 122 127 Net cash flow from operating activities, after tax (196) (54) Capital expenditure (348) (521) Acquisitio

  47. Slide 47: Consolidated net profit

    CONSOLIDATED NET PROFIT In € million H1 2010 H1 2011 Net profit from continuing operations 222 166 Attributable to equity holders 173 134 Attributable to minority interests 48 32 Net profit from discontinued operations (7) (1) Attributable to equity holders (7) (1) Attributable to minority interests

  48. Slide 48: 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 expense (as defined in the “Significant Accounting Policies” section of the notes to the annual consolidated financial statements), non- recu

  49. Slide 49: Reconciliation of reported profit to underlying profit

    RECONCILIATION OF REPORTED PROFIT TO UNDERLYING PROFIT H1 2010 Adjust- H1 2010 H1 2011 Adjust- H1 2011 In € million ments underlying ments underlying Trading profit 541 0 541 571 0 571 Other operating income and expense, net (56) 56 0 (125) 125 0 Operating profit 485 56 541 446 125 571 Finance costs

  50. Slide 50: Trading profit: France

    TRADING PROFIT: FRANCE Change Change In € million H1 2010 H1 2011 (reported) (organic) Net sales 8,596 9,102 +5.9% +3.7% EBITDA 554 479 -13.5% -14.9% EBITDA margin 6.4% 5.3% -118 bp -115 bp Trading profit 347 271 -21.9% -23.4% Trading margin 4.0% 3.0% -106 bp -105 bp 2011 FIRST-HALF RESULTS 50

  51. Slide 51: Trading profit: International

    TRADING PROFIT: INTERNATIONAL Change Change In € million H1 2010 H1 2011 (reported) (organic) Net sales 4,993 7,041 +41.0% +12.8% EBITDA 314 450 +43.5% +11.8% EBITDA margin 6.3% 6.4% +11 bp -5 bp Trading profit 194 301 +54.6% +14.9% Trading margin 3.9% 4.3% +37 bp +7 bp 2011 FIRST-HALF RESULTS 51

  52. Slide 52: Net sales by segment

    NET SALES BY SEGMENT Organic Organic Q2 Q2 % change H1 H1 % change In € million 2010 2011 change excl. 2010 2011 change excl. petrol petrol Franprix-Leader Price 1,038 1,185 +14.1% +2.5% 2,015 2,259 +12.1% +2.8% Monoprix 470 494 +5.1% +5.0% 940 977 +4.0% +3.9% Casino France 2,863 3,010 +5.1% +3.1% 5

  53. Slide 53: Same-store sales: France

    SAME-STORE SALES FRANCE Q2 2011 H1 2011 Including Excluding Including Excluding petrol petrol petrol petrol Franprix -4.7% -4.7% -4.5% -4.5% Leader Price +1.6% +1.6% +2.7% +2.7% HM Géant +3.6% +1.0% +2.6% -0.8% Casino SM +1.8% +0.6% +1.8% -0.6% Monoprix +3.1% +3.1% +1.7% +1.6% 2011 FIRST-HALF RESULT

  54. Slide 54: Same-store sales: International

    SAME-STORE SALES INTERNATIONAL Q2 2011 H1 2011 Including Excluding Including Excluding petrol petrol petrol petrol South America +12.7% +12.7% +9.5% +9.5% Asia +2.4% +2.4% +3.8% +3.8% 2011 FIRST-HALF RESULTS 54

  55. Slide 55: Other financial income and expense

    OTHER FINANCIAL INCOME AND EXPENSE In € million H1 2010 H1 2011 Change in fair value of options (1) 25 Exchange gains and losses excl. hedging instruments (1) (3) Discounting adjustments (3) 2 Other (10) (33) TOTAL (15) (9) 2011 FIRST-HALF RESULTS 55

  56. Slide 56: Average exchange rates

    AVERAGE EXCHANGE RATES In € million Q1 2010 Q1 2011 Var.% H1 2010 H1 2011 Var. % Argentina (ARS / EUR) 0.188 0.182 -3.1% 0.195 0.176 -9.5% Uruguay (UYP / EUR) 0.037 0.037 +1.5% 0.038 0.037 -2.8% Thailand (THB / EUR) 0.022 0.024 +9.1% 0.023 0.023 +1.7% Vietnam (VND / EUR) (x 1,000) 0.040 0.037 -7.3%

  57. Slide 57: Minority interests

    MINORITY INTERESTS In € million H1 2010 H1 2011 Mercialys 25 27 FP/LP 1 2 Big C 13 18 Exito 10 (10)* Other (1) (5) TOTAL 48 32 * Under the IFRS norms, Exito’s net income includes the non-recurring fiscal charge of -72M€ 2011 FIRST-HALF RESULTS 57

  58. Slide 58: Share of profit of associates

    SHARE OF PROFIT OF ASSOCIATES In € million H1 2010 H1 2011 FRANCE 5 0 INTERNATIONAL 5 (4) TOTAL 10 (4) 2011 FIRST-HALF RESULTS 58

  59. Slide 59: Puts included in net debt

    PUTS INCLUDED IN NET DEBT Value at Value at Exercise In € million % capital 31 Dec. 2010 30 Jun. 2011 period Franprix- Majority-owned franchise stores 44 95 Various dates Leader Price Other 2 2014 At any time Uruguay (Devoto) 13 13  2021 TOTAL 58 109 2011 FIRST-HALF RESULTS 59

  60. Slide 60: Off-balance sheet puts

    OFF-BALANCE SHEET PUTS Value at Value at In € million % capital Exercise period 31 Dec. 2010 30 Jun. 2011 Monoprix(1) 50%  100% 1,225 1,225 2012-2028 Franprix Minority-owned franchise 184 101 Various dates Leader Price stores At any time Uruguay (Disco) 56 53  2021 Other 0 2 2014 TOTAL 1,464 1,381

  61. Slide 61: Changes in equity

    CHANGES IN EQUITY in €m 165 Distribution Translation adjustment TSSDI Profit for Other the period (379) dividends (154) 9,064 (19) (118) 8,559 31 Dec. 2010 30 Jun. 2011 2011 FIRST-HALF RESULTS 61

  62. Slide 62: Number of stores

    NUMBER OF STORES France 31 Dec. 2010 30 Jun. 2011 Géant Casino 125 127 Casino Supermarkets 405 409 Franprix 870 875 Monoprix 494 497 Leader Price 585 598 Superettes 6,675 6,678 Other 307 303 TOTAL FRANCE 9,461 9,487 International Argentina 23 24 Uruguay 53 53 Brazil 1,647 1,604 Thailand 116 178 Viet

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