Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — H1 2020 Earnings Presentation
48 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 30, 2020
Slide 1: 2020 Half-Year Results
2020 HALF-YEAR RESULTS 30 July 2020 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 1
Slide 2: Contents
Contents 1 INTRODUCTION 2 H1 2020 RESULTS 3 APPENDICES 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 2
Slide 3: Introduction
INTRODUCTION 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 3
Slide 4: Management of the Covid-19 health crisis
Management of the Covid-19 health crisis § Casino Group mobilised its resources to fulfil its essential role of securing food supplies for people during the unprecedented health crisis • Priority was placed on implementing measures to protect employees and customers: face masks and hydro-alcoholic g
Slide 5: France: H1 2020 highlights
France: H1 2020 highlights § Strong growth in E-commerce and buoyant formats in Q2 2020, in an environment shaped by the unprecedented health crisis • Mobilisation of the Group’s resources to supply its different banners, while also protecting the health of customers and employees • France Retail: s
Slide 6: Latin America: H1 2020 highlights
Latin America: H1 2020 highlights § Latin America net sales up +17.3% on an organic basis and +12.5% on a same-store basis in Q2 2020 • In Brazil1, acceleration of growth at Assaí (new stores and sales to consumers), with organic growth of +26.4%, and success of Multivarejo’s turnaround strategy, wi
Slide 7: Progress on strategic priorities in France (1/4)
Progress on strategic priorities in France (1/4) Format and category mix: further development in priority areas § Premium and convenience formats: 68 stores opened in H1 2020 • Objective to open 300 new stores by 2021, in addition to the 213 stores opened in 2019 • Roll-out of 79 Hema corners and 18
Slide 8: Progress on strategic priorities in France (2/4)
Progress on strategic priorities in France (2/4) Food E-commerce: new step in home delivery § Acceleration in food E-commerce across all banners • Triple-digit growth in food E-commerce over the first half, with the deployment of click & collect and home delivery solutions in urban and convenience f
Slide 9: Progress on strategic priorities in France (3/4)
Progress on strategic priorities in France (3/4) GreenYellow: continued development of the pipeline § Expansion of the international pipeline • Signing of 100th photovoltaic contract in Thailand and a 12 MWp photovoltaic contract in South Africa with a company that operates in precious metals • Ener
Slide 10: Progress on strategic priorities in France (4/4)
Progress on strategic priorities in France (4/4) CSR policy and commitments § No. 1 European retailer for its CSR policy and commitments (ranking by Vigeo Eiris1) • No. 1 European retailer for its climate, environmental protection commitments, human resources policies and corporate governance • No.
Slide 11: Results
RESULTS 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 11
Slide 12: Preliminary comments
Preliminary comments IFRS 5 § In light of the decision made in 2019 to sell Leader Price, this business is presented as a discontinued operation in H1 2019 and 2020 in accordance with IFRS 5. The comparative financial statements at 30 June 2019 have been restated accordingly § Via Varejo, the sale o
Slide 13: Key figures – H1 2020
Key figures – H1 2020 H1 2019 In €m restated H1 2020 Reported change Change at CER Net sales 16,842 16,140 -4.2% +5.9% EBITDA 1,123 1,066 -5.1% +4.0% Trading profit 455 386 -15.3% -3.6% Underlying net profit (loss) from continuing operations, Group share 12 (87) n.a. n.a. Net debt (4,703) (4,834) -1
Slide 14: Distribution costs
Distribution costs H1 2019 Same-store In €m restated H1 2020 change Net sales 16,842 16,140 + 8.4 % Gross margin from recurring activities 4,255 3,981 As % of net sales 25.3% 24.7% Distribution costs1 (3,202) (2,989) As % of net sales 19.0% 18.5% EBITDA 1,123 1,066 As % of net sales 6.7% 6.6% Deprec
Slide 15: Q2 2020 net sales – France
Q2 2020 net sales – France Q2 2020 Q1 2020 Reported Organic Same-store Same-store Net sales (in €m) Q2 2020 change change1 change1 change1 Monoprix 1,137 -0.5% +0.3% +2.9% +3.6% Supermarkets 779 -1.4% +8.9% +9.9% +7.4% o/w Casino Supermarkets2 740 -0.7% +9.8% +11.8% +7.5% Franprix 446 +11.8% +13.7%
Slide 16: France Retail results – H1 2020
France Retail results – H1 2020 In €m H1 2019 restated H1 2020 Change Consolidated net sales 8,045 7,791 +6.0%1 EBITDA 601 564 -6.2% Retail EBITDA 571 560 -1.9% Retail EBITDA margin (%) 7.1% 7.2% +9 bps Property development 31 4 -85.4% Trading profit 207 148 -28.7% Retail trading profit 177 144 -18.
Slide 17: E-Commerce (Cdiscount) results – H1 2020
E-Commerce (Cdiscount) results – H1 2020 Reported Organic In €m H1 2019 H1 2020 change change2 GMV1 1,754 1,946 +11.0% +12.0% Consolidated net sales 889 948 +6.6% EBITDA 13 43 +218.8% EBITDA margin (%) 1.5% 4.5% +302 bps Trading profit (17) 6 n.m. Trading margin (%) -1.9% 0.6% § Increase in GMV of +
Slide 18: Latin America results – H1 2020
Latin America results – H1 2020 Reported In €m H1 2019 H1 2020 change Change at CER Consolidated net sales 7,908 7,401 -6.4% +15.0% o/w GPA 5,914 5,544 -6.3% +16.9% o/w Grupo Éxito 1,988 1,848 -7.0% +9.0% EBITDA 508 459 -9.7% +9.9% o/w GPA 366 325 -11.1% +10.9% o/w Grupo Éxito 143 134 -5.9% +7.3% EB
Slide 19: Underlying net profit, Group share – H1 2020
Underlying net profit, Group share – H1 2020 H1 2019 In €m restated H1 2020 Trading profit and share of profit of equity-accounted investees 477 401 Financial expenses (341) (378) Income taxes (58) (53) Underlying net profit (loss) from continuing operations 79 (30) o/w attributable to non-controlli
Slide 20: Free cash flow France – H1 2020
Free cash flow France – H1 2020 H1 2019 In €m – continuing operations restated H1 2020 Change Of which -€37m relating to the EBITDA 601 564 -37 Covid-19 employee bonus (-) non-recurring items (excl. Rocade plan) (70) (58) +13 (-) rent1 (294) (309) -15 (-) other items (head office expenses, (56) (71)
Slide 21: France net debt – H1 2020
France net debt – H1 2020 H1 2019 In €m restated H1 2020 France net debt at 1 January (2,724) (2,282) Free cash flow1 before disposal plan and Rocade plan (180) (40) Financial expenses (excluding interest on lease liabilities) (144) (208) Dividends paid to owners of the parent and holders of TSSDI d
Slide 22: France net debt – 12-month rolling basis
France net debt – 12-month rolling basis Reduction of +€254m -90 +507 -253 -555 +469 (2,899) (2,821) (2,645) 1 Net debt June 2019 Free cash flow Financial expenses Net debt June 2020, Disposal plan Segisor, settlement Other Net debt June 2020 and dividends after FCF, financial of GPA TRS and (Rocade
Slide 23: Net debt by entity – H1 2020
Net debt by entity – H1 2020 H1 2019 In €m restated Change over the period H1 2020 France Retail (2,899) +77 (2,821) E-commerce (Cdiscount) (356) -21 (376) Latam Retail (1,449) -187 (1,636) o/w GPA (322) -1,090 (1,412) o/w Éxito (729) +715 (14) o/w Segisor (381) +196 (185) Total (4,703) -131 (4,834)
Slide 24: Bond maturities
Bond maturities Maturities of bond debt at 30 June 2020: €5.4bn1 In €m 800 1,000 900 597 720 452 444 508 May 2021 June 2022 Jan. 2023 Jan. 2024 March 2024 Feb. 2025 Aug. 2026 Changes in bond debt and escrow account in 2020 § 9 March 2020 Redemption of the remaining bonds due in 2020 (€257m), of whic
Slide 25: Strong liquidity position maintained in France
Strong liquidity position maintained in France § At 30 June 2020, the Group had cash and cash €3.2bn liquidity position equivalents of €913m and a further €186m held in at 30 June 2020 an escrow account dedicated to bonds redemptions €2,331m § Casino also had €2.3bn in confirmed undrawn credit lines
Slide 26: RCF covenants at 30 June 2020
RCF covenants at 30 June 2020 Covenants relating to the RCF1 calculated at 30 June 2020 for the "France + E-commerce" scope2 7.50 Headroom: €764m 6.62 in gross debt 3.76 Headroom: €350m 2.25 in EBITDA 3 Gross debt/ 3 Limit Adjusted EBITDA/ Minimum adjusted EBITDA net finance costs § Ratios in compli
Slide 27: Outlook for H2 2020 – France
Outlook for H2 2020 – France § The Group's priorities in France for the second half of the year are: • Activity growth driven by food E-commerce and Cdiscount, expansion in buoyant formats and the commercial momentum of the banners • Continued improvement in profitability through the ramp-up of ongo
Slide 28: Appendices
APPENDICES 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 28
Slide 29: Change in assets held for sale under IFRS 5 – France
Change in assets held for sale under IFRS 5 – France In €m FY 2019 H1 2020 Disposals signed Disposal plan 1,250 1,112 735 Others 316 310 11 Total 1,566 1,422 746 § The change in IFRS 5 assets on the disposal plan line is attributable to the sale of Vindémia and the recognition of other assets in the
Slide 30: Underlying net financial expense – H1 2020
Underlying net financial expense – H1 2020 H1 2019 restated H1 2020 Total net Total net Net financial Interest expense financial Net financial Interest expense financial In €m expense Lease liabilities expense expense Lease liabilities expense France Retail (86) (50) (136) (144) (62) (206) E-commerc
Slide 31: Reconciliation of reported net profit to underlying net profit – H1 2020
Reconciliation of reported net profit to underlying net profit (continuing operations) – H1 2020 H1 2019 H1 2019 H1 2020 In €m retraité Adjustments Underlying H1 2020 Adjustments underlying Trading profit 455 0 455 386 0 386 Other operating income and (286) 286 0 (249) 249 0 expenses Operating profi
Slide 32: Underlying non-controlling interests – H1 2020
Underlying non-controlling interests – H1 2020 H1 2019 In €m restated H1 2020 France Retail 6 9 Latam Retail 70 51 o/w GPA 61 26 o/w Grupo Éxito 9 25 E-commerce (Cdiscount) (9) (4) Total 67 57 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 32
Slide 33: Other operating income and expenses – H1 2020
Other operating income and expenses – H1 2020 Restructuring costs in France excl. Rocade plan In €m – reported data Latam and E-commerce § Decline in other operating income and expenses 115 93 France 90 79 49 55 28 27 28 § Decline in non-recurring H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2
Slide 34: Consolidated net profit, Group share – H1 2020
Consolidated net profit, Group share – H1 2020 H1 2019 In €m restated H1 2020 Net profit (loss) before taxes (125) (314) Income tax (24) 12 Equity-accounted investees 22 15 Net profit (loss) from continuing operations (127) (287) o/w Group share (172) (334) o/w attributable to non-controlling intere
Slide 35: Share of profit of equity-accounted investees – H1 2020
Share of profit of equity-accounted investees H1 – 2020 H1 2019 In €m restated H1 2020 France Retail 15 13 o/w Mercialys 18 14 o/w Franprix (4) (0) o/w Other 1 (0) Latam Retail 7 2 Total 22 15 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 35
Slide 36: Group free cash flow: Continuing operations – H1 2020
Group free cash flow: Continuing operations – H1 2020 (6 months) H1 2019 In €m restated H1 2020 EBITDA 1,123 1,066 (-) non-recurring items (132) (159) (-) rent1 (479) (478) (-) other items (head office expenses, (41) (60) dividends on equity-accounted investees) Cash flow from continuing operations
Slide 37: Group net debt – 30 June 2020
Group net debt – 30 June 2020 H1 2019 In €m restated H1 2020 Group net debt at 1 January (3,378) (4,053) Free cash flow1 (893) (721) Interest expense (excluding interest on lease liabilities) (245) (290) Dividends paid to owners of the parent and holders of TSSDI deeply-subordinated (274) (67) bonds
Slide 38: Breakdown of consolidated net debt – 30 June 2020
Breakdown of consolidated net debt – 30 June 2020 Cash and cash IFRS 5 In €m Gross debt equivalents impact Net debt France Retail (5,157) 913 1,422 (2,821) Latam Retail (3,012) 1,285 90 (1,636) E-commerce (Cdiscount) (385) 9 0 (376) Total (8,554) 2,207 1,512 (4,834) 2020 HALF-YEAR RESULTS ▪ Thursday
Slide 39: Consolidated P&L – H1 2020
Consolidated P&L – H1 2020 H1 2019 In €m restated H1 2020 Net sales 16,842 16,140 Other revenues 327 245 Total revenues 17,169 16,385 Costs of goods sold (12,914) (12,403) Gross margin from recurring activities 4,255 3,981 % of net sales 25.3% 24.7% Costs of sales (3,105) (2,939) General and adminis
Slide 40: Balance sheet – 30 June 2020
Balance sheet – 30 June 2020 31/12/2019 In €m restated 30/06/2020 Goodwill 7,489 6,746 Property, plant and equipment, intangible assets and investment property 7,902 6,760 Right-of-use assets 4,837 4,387 Investments in equity-accounted investees 341 205 Deferred tax assets 772 853 Other non-current
Slide 41: Breakdown of cash in France by subsidiary
Breakdown of cash in France by subsidiary § Cash position in France: breakdown by entity • The scope includes Casino, Guichard-Perrachon (CGP), the parent company, the French businesses and the wholly-owned holding companies • Within this scope, cash and cash equivalents, excluding the €186m held in
Slide 42: Puts included in the balance sheet
Puts included in the balance sheet % Value at Value at Exercise In €m capital 30/06/2019 30/06/2020 period Majority-held franchised Various dates Franprix 49 42 stores 2 Exercisable until Monoprix 43% 1 31/12/2020 Casino Participation France 26 Various dates Distribution Casino France 40% 18 19 2023
Slide 43: Off-balance sheet puts
Off-balance sheet puts % Value at Value at Exercise In €m capital 30/06/2019 30/06/2020 period Monoprix 14 5 Various dates 2020 HALF-YEAR RESULTS ▪ Thursday, 30 July 2020 ▪ 43
Slide 44: Q2 2020 net sales – Group
Q2 2020 net sales – Group Same-store change in gross sales Q1 2020 Net sales under Total Organic Same-store Same-store In €m Q2 2020 banner change change1 change1 change1 France Retail 3,906 +6.3% -5.6% +3.1% +6.0% +5.8% Cdiscount 499 +20.9% +20.9% +20.9% +20.9% -5.8% Total France 4,405 +8.2% -3.2%
Slide 45: Q2 2020 gross sales under banner – France
Q2 2020 gross sales under banner – France Total estimated gross food sales Same-store change under banner (in €m, excl. fuel) Q2 2020 (excl. calendar effects) Monoprix 1,156 +2.9% Franprix 513 +14.7% Supermarkets 769 +9.9% Hypermarkets 774 -1.3% Convenience 451 +18.0% Other 298 n.a. Total Food 3,962
Slide 46: France store network at 30 June 2020
France store network at 30 June 2020 FRANCE 31/12/2019 31/03/2020 30/06/2020 Géant Casino hypermarkets 109 104 104 o/w French franchised affiliates 4 4 4 International affiliates 6 6 6 Casino Supermarkets 411 411 415 o/w French franchised affiliates 83 69 69 International franchised affiliates 22 22
Slide 47: International store network at 30 June 2020
International store network at 30 June 2020 International 31/12/2019 31/03/2020 30/06/2020 ARGENTINA 25 25 25 Libertad hypermarkets 15 15 15 Mini Libertad and Petit Libertad mini-supermarkets 10 10 10 URUGUAY 91 93 93 Géant hypermarkets 2 2 2 Disco supermarkets 29 29 29 Devoto supermarkets 24 24 24
Slide 48: 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 forecasts and estimates and their underlying assumptions, statements regarding plans, objectives,
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