Sligro Food Group N.v. · EURONEXT:SLIGR

Sligro Food — FY2017 Earnings Presentation

56 slides from Sligro Food's earnings presentation, Jan 25, 2018

  1. Slide 1: Annual figures 2017

    Sligro Food Group N.V. Annual figures 2017 Amsterdam, 25 January 2018

  2. Slide 2: Programme

    Stiste) Sligro Food Group NV. Programme Welcome Annual figures 2017 Food Retail Foodservice Outlook for 2018 Koen Slippens Rob van der Sluijs Koen Slippens Koen Slippens Koen Slippens

  3. Slide 3: Net sales

    Net sales 2017 2016 28.1% 29.7% 44.6% 45.7% 26,2% 25.7% FS Delivery FS Cash-and-Carry Supermarkets

  4. Slide 4: Net Sales: Geographical segmentation

    Net Sales: Geographical segmentation amounts * € million 1) This relates on the one hand to delivery sales from the Dutch delivery centres to Belgian customers. On the other hand, these are Belgian customers from the border area who shop at the Dutch cash-and-carry wholesaler outlets.

  5. Slide 5: Net sales Foodservice

    Net sales Foodservice 59  77  20 2,142  1,986   2016 Acquisitions Acquisitions Organic 2017 2016 2017

  6. Slide 6: Net sales Foodservice

    Stiste) Sligro Food Group NV. amounts *€ million Qi Q2 Q3 a4 Total Reported sales 466 553 531 592 2,142 as a % of previous year 8.6% 8.0% 4.3% 10.4% 7.9% Shift in Easter 5 6 ° 2 2 Trend in consignments 8 - 5 5 2 Acquisitions -20 -15 -19 -43 -97 Adjusted organic underlying 443 533 517 554 2,047 as a

  7. Slide 7: Net sales Food Retail

    Net sales Food Retail 1 -1 1  827 828  2016 SM changes LfL Other 2017 customers  Δ   

  8. Slide 8: Gross margin

    Stiste) Sligro Food Group NV. amounts *€ million® 2017 2016 2017 2016 Net sales 2,970 2,813 100.0% 100.0% Gross margin 695 645 23.4% 22.9% Other operating income 19 4 0.7% 0.1% Expenses -540 -493. --18.2% -17.4% EBITDA 174 156 5.9% 5.6% Impairments -2 -2 -0.1% -0.1% Depreciation -49 -42 -1.6% -1.5%

  9. Slide 9: Other operating income

    Stiste) Sligro Food Group NV. amounts *€ million® 2017 2016 2017 2016 Net sales 2,970 2,813 100.0% 100.0% Gross margin 695 645 23.4% 22.9% Other operating income 19 4 0.7% 0.1% Expenses -540 -493. --18.2% -17.4% EBITDA 174 156 5.9% 5.6% Impairments -2 -2 -0.1% -0.1% Depreciation -49 -42 -1.6% -1.5%

  10. Slide 10: Expenses 1/2

    Stiste) Sligro Food Group NV. amounts *€ million® 2017 2016 2017 2016 Net sales 2,970 2,813 100.0% 100.0% Gross margin 695 645 23.4% 22.9% Other operating income 19 4 0.7% 0.1% Expenses -540 -493. --18.2% -17.4% EBITDA 174 «156. = 5.9% = 5.6% Impairments -2 -2 -0.1% -0.1% Depreciation -49 -42 -1.6%

  11. Slide 11: Expenses 2/2

    Stiste) Sligro Food Group NV. amounts *€ million® 2017 2016 2017 2016 Net sales 2,970 2,813 100.0% 100.0% Gross margin 695 645 23.4% 22.9% Other operating income 19 4 0.7% 0.1% Expenses -540 -493. --18.2% -17.4% EBITDA 174 «156. = 5.9% = 5.6% Impairments -2 -2 -0.1% -0.1% Depreciation -49 -42 -1.6%

  12. Slide 12: EBITA

    Stiste) Sligro Food Group NV. amounts *€ million® 2017 2016 2017 2016 Net sales 2,970 2,813 100.0% 100.0% Gross margin 695 645 23.4% 22.9% Other operating income 19 4 0.7% 0.1% Expenses -540 -493. --18.2% -17.4% EBITDA 174 156 5.9% 5.6% Impairments -2 -2 -0.1% -0.1% Depreciation -49 -42 -1.6% -1.5%

  13. Slide 13: Analysis of operational performance

    Analysis of operational performance

  14. Slide 14: Depreciation, amortisation, interest & tax

    Depreciation, amortisation, interest & tax     

  15. Slide 15: Net profit

    Stiste) Sligro Food Group NV. amounts *€ million® 2017 2016 2017 2016 Net sales 2,970 2,813 100.0% 100.0% Gross margin 695 645 23.4% 22.9% Other operating income 19 4 0.7% 0.1% Expenses -540 -493. --18.2% -17.4% EBITDA 174 156 5.9% 5.6% Impairments -2 -2 -0.1% -0.1% Depreciation -49 -42 -1.6% -1.5%

  16. Slide 16: Results by segment

    Stiste) Sligro Food Group NV. Foodservice Food retail amounts *€ million” 2017 2016 2017 2016 Revenue 2,142 1,986 828 827 Other operating income 9 - 10 4 EBITDA 148 131 26 25 EBITA 111 ag) 12 13 EBIT 91 82 6 5 EBITDA as % of revenue 6.9% 6.6% 3.2% 3.0% EBITA as % of revenue 5.2% 5.0% 1.4% 1.5% EBIT

  17. Slide 17: Cash flow statement

    Sligro Food Group NV. Free cash flow significantly improved Working capital fallen to four days of sales as a result of SCF programme and inventories reduction Acquisitions of ISPC, Tintelingen and HEINEKEN Wholesale Disposal of operating activities includes book profit on sale of beer&cider in Deli

  18. Slide 18: Segmented cash flow

    Stiste) Sligro Food Group NV. Foodservice Food retail amounts *€ milion * 2017 2016 2017 2016 EBT 91 82 6 5 Depreciation and amortisation of software 45 40 14 12 Amortisation of other intangible assets 12 9 6 8 Other operating income in CAPEX 9 8 A Changes in working capital and other changes 38 2 2

  19. Slide 19: Food Retail

    Stiste) Sligro Food Group NY, Food Retail = Market trends = Sligro Food Group’s Food Retail business = Plans for 2018 and beyond

  20. Slide 20: Market trends in Food Retail in 2017

    Market trends in Food Retail in 2017        

  21. Slide 21: Food Retail market share in 2017

    Food Retail market share in 2017

  22. Slide 22: Robust & stable regional market position for EMTÉ

    Robust & stable regional market position for EMTÉ

  23. Slide 23: Food Retail sales

    Stiste) Sligro Food Group NV. LFL 3.0 excl. Av. 2017 LFL total LFL2.0 conversion IRI/Nielsen Qi -1.2% -0.8% -0.3% 2.4% Q2 0.6% 0.6% 2.9% 4.7% Q3 -0.6% -1.2% 3.0% 2.8% Q4 1.9% 1.7% 2.6% 4.4% Total 0.2% 0.0% 2.3% 3.6% EMTE (both 2.0 and 3.0), despite high customer rating, failed to keep pace with nati

  24. Slide 24: Customer rating: Net Promotor Score

    Customer rating: Net Promotor Score

  25. Slide 25: Customer rating: Supermarket report GfK

    Customer rating: Supermarket report GfK  

  26. Slide 26: Overall ranking #4 in GfK Supermarket report 2017

    Overall ranking #4 in GfK Supermarket report 2017 Overall

  27. Slide 27: Food Retail contribution to Sligro Food Group sales

    Food Retail contribution to Sligro Food Group sales           

  28. Slide 28: Food Retail at SFG, Evaluation of future 1/2

    Food Retail at SFG, Evaluation of future 1/2      

  29. Slide 29: Food Retail at SFG, Evaluation of future 2/2

    Food Retail at SFG, Evaluation of future 2/2      

  30. Slide 30: Plans for 2018 and beyond

    Stiste) Sligro Food Group NV. Strategic: = Finalise partnership or sale transaction for our Food Retail activities Operational: = Conversion to 3.0 format for relocations or necessary renovations (no conversions in 01 2018 based on the current planning) = Concentrate on improving profitability and o

  31. Slide 31: Foodservice

    Stiste) Sligro Food Group NY, Foodservice = Market trends = Sligro Food Group’s Foodservice business = Plans for 2018 and beyond 30

  32. Slide 32: Market trends in Foodservice NL 2017

    Market trends in Foodservice NL 2017      

  33. Slide 33: Foodservice the Netherlands market share

    Foodservice the Netherlands market share Market share NL

  34. Slide 34: Market trends in Foodservice BE 2017

    Market trends in Foodservice BE 2017      

  35. Slide 35: Foodservice Belgium market share

    Foodservice Belgium market share Market share BE

  36. Slide 36: Foodservice

    Sligro Food Group Foodservice          

  37. Slide 37: FS developments NL

    FS developments Sligro Food Group NL        

  38. Slide 38: ZiN and Sligro Online order platform

    ZiN and Sligro Online order platform              

  39. Slide 39: Foodservice

    Sligro Food Group Foodservice    

  40. Slide 40: Foodservice (NL + B)

    Sligro Food Group Foodservice (NL + B)            

  41. Slide 41: FS developments NL

    FS developments Sligro Food Group NL    Sligro – ISPC (hospitality and other market segments)  JAVA Foodservice (institutional & catering market)  Ocean Maree (fish production business)  Freshtrans (transport)     

  42. Slide 42: Sligro & HEINEKEN

    Sligro & HEINEKEN 1 DECEMBER 2017 “Completion of transaction = Start of partnership” 14.000 new customers 400 new colleagues 150 extra lorries 13 new DCs

  43. Slide 43: Sligro & HEINEKEN - customers

    Sligro & HEINEKEN - customers   Sligro  customers   HEINEKEN customers  

  44. Slide 44: Sligro & HEINEKEN – Supply Chain

    Sligro & HEINEKEN– Supply Chain       

  45. Slide 45: Plans for 2018 and beyond

    Plans for 2018 and beyond         

  46. Slide 46: SFG Plans for 2018 and beyond general

    SFG Plans for 2018 and beyond general  

  47. Slide 47: Outlook

    Outlook 46

  48. Slide 48: Outlook (1/3)

    Stiste) Sligro Food Group NV. Economy is growing at the same rate as in previous years in the Netherlands and Belgium We expect to be able to outperform the Foodservice markets in NL and BE organically and with acquisitions As usual, we refrain from making any definite forecasts, however given a rel

  49. Slide 49: Outlook (2/3)

    Stiste) Sligro Food Group NV. HEINEKEN adds another €135 million in net non-organic sales growth: = Wholesale sales: + €180 million annual sales, EBIT on target DS average = Beer&cider deliveries turnover sold: - €30 million annual sales, EBIT on target DS average = Fees for services: + €20 million

  50. Slide 50: Outlook (3/3)

    Stiste) Sligro Food Group NV. = Over the next few years, SFG will replace its entire IT landscape to create more flexibility and to be able to integrate and grow internationally: = Programme duration: 4 to 5 years (in connection with risk spread) "One-off implementation: approximately €60 million CA

  51. Slide 51: Focus!

  52. Slide 52: Appendices

    Appendices 51

  53. Slide 53: Profit & loss account

    Stiste) Sligro Food Group NV. amounts *€ million 2017 2016 change 2017 2016 Net sales 2,970 2,813 5.6% 100.0% 100.0% Gross margin 695 645 7.7% 23.4% 22.9% Other operating income 19 4 372.0% 0.7% 0.1% Expenses -540 -493 9.7% -18.2% -17.4% EBITDA 174 156 11.3% 5.9% 5.6% Impairments -2 -2 12.5% -0.1% -

  54. Slide 54: Balance sheet

    Stiste) Sligro Food Group NV. amounts *€ million™ 30-12-2017 31-12-2016 30-12-2017 31-12-2016 Non-current assets Shareholders’ equity 651 627 Intangible assets 298 221 Property, plant and equipment 303 361 Provisions 28 33 Investment property 20 Financial assets 62 68 Long-term borrowings 193 103 66

  55. Slide 55: Segment information

    Sligro Food Group NV. Foodservice Food retail Total amounts *€ million” 2017-11 2016-11 2017-1 2016-1 2017-11 2016-11 2017-1 2016-1 2017-11 2016-I1 2017-1 2016-1 Revenue 1,123 1,045 1,019 941 412 413 416 414 1,535 1,458 1,435 1,355 Other operating income 9 - - - 3 3 7 1 12 3 7 1 EBITDA 88 76 60 55 1

  56. Slide 56: Slide 56

Sligro Food Group — FY2017 Earnings Presentation on 6ix