Jeronimo Martins, Sgps S.a. · EURONEXT:JMT
Jeronimo Martins, Sgps — Jerónimo Martins — H1 2008 Earnings Presentation
18 slides from Jeronimo Martins, Sgps's earnings presentation, Jul 30, 2008
Slide 1: H1 2008 Results
H1 2008 RESULTS July 30th, 2008
Slide 2: Key Figures
H1 2008 RESULTS Key Figures (Euro Mio) H1 08 H1 07 Δ% vs. H1 07 Consolidated Net Sales 3,171.7 2,419.9 + 31.1% EBITDA 199.4 142.0 + 40.4% Net Earnings 64.9 41.7 + 55.5% EPS (Euro) 0.10 0.07 + 55.5% Consolidated Net Debt 765.1 695.5 +10.0% 2
Slide 3: Income Statement
H1 2008 RESULTS Income Statement Strong growth - top line and results H1 08 H1 07 Mio. Euro % Mio. Euro % Δ% Net Sales & Services 3,171.7 2,419.9 31.1% Total Margin 718.3 22.6% 553.6 22.9% 29.7% Operating C osts -518.9 -16.4% -411.6 -17.0% 26.1% EBITDA 199.4 6.3% 142.0 5.9% 40.4% Depreciation -73.9
Slide 4: Strong Top Line Performance
H1 2008 RESULTS Strong Top Line Performance Pingo Doce and Biedronka – main growth drivers for the Group • Pingo Doce and Biedronka – outstanding growth on a demanding LFL comparison • Main drivers for the LFL growth: • Biedronka: average ticket • Pingo Doce: average ticket and number of customers T
Slide 5: Pingo Doce – Recent Developments
H1 2008 RESULTS Pingo Doce – Recent Developments… Total sales grew 30.3% in the period LFL - outperforming the sector (Euro mio) 14.8% 62.7 25.5 675.6 12.5% 69.0 10.7% 518.4 8.9% +30.3% 8.0% 7.6% +4.9% +12.1% +13.3% H1 07 LFL PD stores ex-Plus H1 08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 (new and revamped) •
Slide 6: Plus in Portugal - Recent Developments (i)
H1 2008 RESULTS Plus in Portugal - Recent Developments (i)… • Plus started to contribute to JM’s accounts from May 1st, 2008 • Integration process in two stages to reduce impact on sales and results and to rationalise conversion Capex • Plus contribution for the semester • Sales contribution: Euro 2
Slide 7: Plus in Portugal - Recent Developments (ii)
H1 2008 RESULTS Plus in Portugal - Recent Developments(ii)… • Stage one of conversion – Implemented • Light revamping of 75 stores - Brand, IT, layout, logistics and adapted assortment - Closure period: 1 week per store; full network revamped in two months • Full conversion into Pingo Doce of 2 stor
Slide 8: Feira Nova – Recent Developments
H1 2008 RESULTS Feira Nova – Recent Developments… LFL Hypers LFL Compact 9,1% 2,8% 2,2% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3,2% 0,8% 0,4% 0,2% -4,1% -4,4% -4,5% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 -0,9% -6,7% • Conversion into Pingo Doce is starting with one store, 3 more stores will be converted until the yea
Slide 9: Biedronka – Recent Developments
H1 2008 RESULTS Biedronka – Recent Developments… Total sales grew 52.0% in the period LFL - outperforming the sector (Euro mio) 26.1% 26.5% 150.5 1,618.8 155.8 22.4% 247.8 18.9% 19.4% 19.3% 1,064.7 +52.0% +14.1% +14.6% +23.3% H1 07 LFL Bied stores F/X effect H1 08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 (new
Slide 10: Recheio – Recent Developments
H1 2008 RESULTS Recheio – Recent Developments… Solid LFL Sales Growth Sales by Segment 5.0% 4.6% 4.7% 4.2% 3.2% 16,2% 43,7% 1.9% HoReC a Traditional Retailers Others 40,1% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 • Solid sales performance thanks to strategic focus in HoReCa • Sales to HoReCa grew by 6.5% • Pri
Slide 11: Manufacturing – Recent Developments
H1 2008 RESULTS Manufacturing – Recent Developments… • Sales growth of 1.1% • Good performance in main categories • Adjustments in pricing policies could affect volumes somehow • Home care and personal care – the weakest segments • Ice-creams reflecting a poor summer season • Innovation remains top
Slide 12: Strong Operational Performance
H1 2008 RESULTS Strong Operational Performance Solid capacity to generate cash. EBITDA grew 40.4%, faster than sales Retail in Portugal – Mg from 5.4% (H107) to 5.1% (H108) • Operational leverage mitigated the increase id the costs of EBITDA (Euro mio) energy and fuel 199.4 • Some dilution coming fr
Slide 13: Balance Sheet
H1 2008 RESULTS Balance Sheet • Balance sheet remains solid • Net debt already including Plus acquisition in Portugal • Positive contribution from working capital (Euro mio) H1 08 2007 YE H1 07 Net Goodw ill 559,3 416,3 423,6 Net Fixed Assets 1.874,4 1.750,5 1.501,8 Net Working Capital -936,2 -863,0
Slide 14: Capex
H1 2008 RESULTS Capex Capex reached Euro 341.1 million (including Plus acquisition in Portugal) Capex per business area Capex per nature 4,1% Retail Portugal 12,8% Biedronka Expansion Others Remodelling 12,8% Others 32,8% 63,0% 74,4% Portugal Poland • Plus acquisition – 77 stores • 52 new stores • 6
Slide 15: Outlook 2008
OUTLOOK 2008 Full year sales performing in line with H1 • Portugal: Organic (10 new Pingo Doce stores) and LFL (mid single digit) • Poland: Organic (minimum of 100 new stores) and LFL (c.20%) • Plus integration – Portugal and Poland (expecting Anti Trust Authorities approval during the summer) Stron
Slide 16: Q&A Session
JERONIMO MARTINS Q&A SESSION Jerénimo Martins, Pingo Doce, Feira Nova, Recheio, Biedronka, MasterChef, UltraPro, ActivPet, b.Sensy, Jeronimo Martins Distribuicao de Produtos de Consumo, Jerdnima Martins Restauracao e Servicos, Unilever-Jerdnimo Martins, Jeronymo, Olé, Hussel, Caterplus, Becel, Calvé
Slide 17: Group Structure
Group Structure (Nr of stores as of June 08) Jerónimo Martins, SGPS Market Cap. = Euro 3.1 bni) Sales 07= Euro 5,350 mn EBITDA 07 = Euro 351 mn (6.6%) Inv. Capital 07 = Euro 1,443 mn Jerónimo Martins, SGPS Food Distribution Manufacturing Services Portugal Portugal 51% 100% 100% 45% Retail Wholesale
Slide 18: Jerónimo Martins
—) JERONIMO MARTINS Jerdénimo Martins, Pingo Doce, Feira Nova, Recheio, Biedronka, MasterChef, UltraPro, ActivPet, b.Sensy, Jerénimo Martins Distribuicao de Produtos de Consumo, Jerénimo Martins Restauracao e Servicos, Unilever-jerénimo Martins, Jeronymo, Ola, Hussel, Caterplus, Becel, Calvé, Flora,