Slide 1: 2020 Results
2020 Results 28 October 2020
Slide 2: Disclaimer
Disclaimer This document has been prepared by Compañía de Distribución Integral Logista Holdings, S. A. (“Logista Holdings” or “the Company”) for information purposes, and does not constitute an offer of purchase, sale or exchange, neither an invitation for an offer of purchase, sale or exchange of
Slide 3: Index
Index: Results Highlights Business Review Financial Review Final Remarks & Outlook 3
Slide 4: 2020 at a glance
2020 at a glance Robust results, challenging environment due to COVID-19 Ensuring distribution o Revenues +4.0% o Economic Sales +0.7% MANAGING o EBIT +1.0% Cost COVID-19 New needs, management IMPACTS new services o Adj. EBIT -1.9% o Net Profit -4.5% Protecting our people 4
Slide 5: Managing COVID-19 impacts: Ensuring distribution
Managing COVID-19 impacts: Ensuring distribution A different playing field Most Lockdowns activities and human E-commerce Business declared mobility boom Intelligence essential restrictions Omni-channel Opportunity to Service of ordering, Proximity retail provide a high- growing flexibility in gaini
Slide 6: Managing COVID-19 impacts: New needs, new services
Managing COVID-19 impacts: New needs, new services Supporting our clients Tobacco • Building up security stocks close to points of sale • Widening product portfolios accessible to end-consumers Convenience during lockdowns • Direct-to-patient clinical trials Pharma • Home delivery - chronic disease
Slide 7: Managing COVID-19 impacts: Protecting our people
Managing COVID-19 impacts: Protecting our people Increased focus on health & safety • Ensuring health and wellbeing, preventing Employees, contagion collaborators, their families, our • Smart working policy implemented communities • Maintaining activity during pandemic 7
Slide 8: Managing COVID-19 impacts: Cost management
Managing COVID-19 impacts: Cost management Facing a new reality Health and safety: new protocols, extra expenses Optimization program to offset the current environment Restructuring of severely damaged activities Network/transport routes reorganization Digitalisation, from a solid base 8
Slide 9: Delivering on our goal
Delivering on our goal Four building blocks High quality added-value service Expanding business base Our goal: Sustainable long term value creation Efficiency improvement Robust cash flow profile 9
Slide 10: Business Review
Business Review 10
Slide 11: Business Review: Robust results, challenging environment
Business Review Robust results, challenging environment due to COVID-19 262 (7) (14) 16 257 Adj.EBIT Inventories’ COVID-19 Regular Adj. EBIT FY 2019 valuation impact operations FY 2020 differential All data in M€, unless otherwise stated 11
Slide 12: Business Review: Iberia
Business Review Iberia o Tobacco distribution: Volumes* down 3.8%, affected by cross-border/ Estimated +0.6% COVID-19 impact: inbound tourism sales drop -11M€ No relevant impact of inventories’ valuation 3,176 o Convenience distribution: +0.7% Wider portfolio, points-of-sale open during (0.4)%
Slide 13: Business Review: France
Business Review France Estimated +4.6% COVID-19 impact: -3M€ o Tobacco distribution: 4,256 Volumes* down 3.1% due to retail selling price (5.0)% increases (16.7)% Inventories’ valuation impact: negative in 264 62 FY2020 Revenues Ec. Sales Adj. EBIT o Convenience distribution to tobacconists: C
Slide 14: Business Review: Italy
Business Review Italy Estimated +6.9% COVID-19 impact: no significant o Tobacco distribution: 3,167 Volumes* , similar to FY2019 +6.3% Value added services +11.9% 304 Inventories’ valuation impact: slightly below 91 FY2019 Revenues Ec. Sales Adj. EBIT o Solid growth in Next Generation Products
Slide 15: Financial Review
Financial Review 15
Slide 16: Positive activity performance
Positive activity performance REVENUES +4.0% 10,148 10,559 o Main activities grew Revenues except Long distance, Parcel transport and Publications, in Spain, Convenience in France FY 2019 FY 2020 EC. SALES +0.7% o Positive performance in Spain and Italy offset France decline 1,149 1,157 o Tobacco ta
Slide 17: Significant cost management, resilient operating results
Significant cost management, resilient operating results ADJ. EBIT (1.9)% o Total operating costs up by 1.4% 262 257 o New/increased costs due to COVID-19, some others reduced o Efficiency measures, savings’ FY 2019 FY 2020 program 262 (7) 16 257 (14) EBIT 1.0% o Similar restructuring cost: 12M€ Adj
Slide 18: Limited impact in Net profit
Limited impact in Net profit (4.5)% 2 (1) (8) 165 157 Net profit EBIT Financial Taxes Net profit FY 2019 results FY 2020 o Financial income up: same interest rate on higher average cash position o Financial expenses up: first year accounting IFRS 16 o Consolidated tax rate up: end of previous years’
Slide 19: Annual evolution of cash position
Annual evolution of cash position 5.000 o Seasonality driving cash position to 4.000 its peak towards year end o Better than expected, temporary 3.000 change in tax payment cycle in France and Italy (COVID-19) 2.000 o Treasury agreement with majority shareholder: temporary uplift of limit 1.000 o Di
Slide 20: Investing in differentiation and high-quality services
Investing in differentiation and high-quality services M€ 2020 2019 Δ% IT investments (technology) 18 25 (30,6)% Infrastructure 9 18 (48.6)% Maintenance 6 8 (15.8)% Total investments 33 50 (34.6)% o > 50% dedicated to technology o Investment calendar maintained despite COVID-19 o Track & Trace inves
Slide 21: Cash generation
Cash generation M€ 2020 2019 Change EBITDA 340 310 +30 Restructuring & Other Payments (16) (12) (4) Rental payments (34) 0 (34) Financial Results 15 14 +1 Normalised Taxes (72) (68) (4) Capex (27) (49) +22 Normalised Free Cash Flow 207 195 +12 WC Variation 611 39 572 Cut off effect on Taxes (51) 62
Slide 22: Dividend Policy: Flexibility to reflect activity performance
Dividend Policy Flexibility to reflect activity performance o Despite a challenging FY2020, the Board intends to propose distributing the same total dividends as in FY2019 o Dividend proposal FY2020 of 156M€ o Total dividend proposal will represent 99.7% pay out over FY2020 Net Income 22
Slide 23: Dividend Policy: Pay out consistently above 90%
Dividend Policy Pay out consistently above 90% of Net Profit Total dividends paid since IPO: c. 820M€ 156M€ 156M€ 149M€ 139M€ 119M€ 98M€ FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 PAY OUT RATIO >90% >90% >90% >95% >95% >99% 23
Slide 24: Share Price performance
Share Price performance 120 110 100 90 80 70 60 LOGISTA IBEX IBEX MEDIUM CAP IBEX TOP DIVIDEND LOGISTA IBEX IBEX MEDIUM CAP IBEX TOP DIVIDEND -18.3% -27.3% -17.0% -31.8% o Logista’s performance in line with mid-cap companies in Spain, outperforming IBEX Top dividend and IBEX35 o Significant impact f
Slide 25: Financial Review: Conclusions
Financial Review: Conclusions Shareholders’ remuneration via dividend Robust Economic Cash Flow profile Highly resilient business model 25
Slide 26: Closing remarks and outlook
Closing remarks and outlook 26
Slide 27: 2020 improvements in ESG agenda
2020 improvements in ESG agenda A-List CDP 42% women FTSE4Good on Board of 4th year directors constituent Supporting Manifesto for a Smart working local initiatives, sustainable policy post-COVID reconstruction implementation recovery 27
Slide 28: 2020 a positive year in a challenging environment
2020 a positive year in a challenging environment Ensuring distribution o Revenues +4.0% o Economic Sales +0.7% MANAGING o EBIT +1.0% Cost COVID-19 New needs, management o Adj. EBIT -1.9% IMPACTS new services o Net Profit -4.5% Protecting our people o Solid set of results under extremely adverse cir
Slide 29: Outlook 2021
Outlook 2021 Adj. EBIT expected to grow mid-single digit o Solid performance since COVID-19 crisis started suggests a mid-single digit Adjusted EBIT growth rate in FY2021 o However, the uncertainties regarding the impact on the economy of our main markets and measures to face it may negatively impac
Slide 30: Appendix
Appendix 30
Slide 31: Tobacco Volumes Evolution
Tobacco Volumes Evolution Relatively good volume performance across geographies Million units % Y-o-Y Change 1 Oct. 2019 – 30 1 Oct. 2018 – 30 1 Oct. 2017 – 30 1 Oct. 2019 – 30 1 Oct. 2018 – 30 Sept. 2020 Sept. 2019 Sept. 2018 Sept. 2020 Sept. 2019 TOTAL Cigarettes 143,469 151,106 155,821 (5.1)% (3.
Slide 32: Revenues Evolution
Revenues Evolution By segment and activity M€ 2020 2019 Δ% Iberia 3,176 3,157 +0.6% Tobacco & Related 2,774 2,754 +0.7% Transport Services 385 386 (0.1)% Other Businesses 163 152 +7.0% Adjustments (147) (134) (9.2)% France 4,256 4,069 +4.9% Tobacco & Related 4,111 3,892 +5.6% Other Businesses 154 18
Slide 33: Economic Sales Evolution
Economic Sales Evolution By segment and activity M€ 2020 2019 Δ% Iberia 585 582 +0.7% Tobacco & Related 286 278 +2.9% Transport Services 272 270 +0.6% Other Businesses 87 86 +0.1% Adjustments (59) (53) (11.1)% France 264 278 (5.0)% Tobacco & Related 230 233 (1.3)% Other Businesses 41 52 (21.5)% Adju
Slide 34: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment M€ 2020 2019 Δ% Iberia 120 120 -0.4% France 62 74 (16.7)% Italy 91 81 +11.9% Corporate & Others (15) (14) (13.1)% Total Adjusted EBIT 257 262 (1.9)% 34
Slide 35: Income Statement
Income Statement M€ 2020 2019 Δ% Revenues 10,559 10,148 4.0% Economic Sales 1,157 1,149 0.7% (-) Operating Costs of Logistic Networks (750) (736) (1.9)% (-) Sales and Marketing Operating Expenses (66) (69) 5.3% (-) Research and G&A Operating Expenses (85) (82) (3.0)% Total Operating Costs (900) (887
Slide 36: Balance Sheet
Balance Sheet M€ 2020 2019 PP&E and other Fixed Assets 373 229 Net Long Term Financial Assets 19 18 Net Goodwill 921 921 Other Intangible Assets 408 457 Deferred Tax Assets 19 19 Net Inventory 1,294 1,283 Net Receivables 1,986 1,946 Cash & Cash Equivalents 2,827 2,211 Total Assets 7,847 7,084 Group
Slide 37: Alternative Performance Measures (1/6)
Alternative Performance Measures (1/6) o Economic Sales: equals Gross Profit and is used without distinction by the Management to refer to the figure resulting of subtracting Procurements to the Revenue figure Management believes that gross profit is a meaningful measure of the fee revenue we genera
Slide 38: Alternative Performance Measures (2/6)
Alternative Performance Measures (2/6) o Adjusted Operating Profit (Adjusted EBIT): This item is calculated, fundamentally, discounting from the Operating Profit those costs that are not directly related to the revenue obtained by the Group in each period, facilitating the performance of Group’s the
Slide 39: Alternative Performance Measures (3/6)
Alternative Performance Measures (3/6) o Adjusted Operating Profit margin over Economic Sales: calculated as Adjusted Operating Profit divided by Economic Sales (or indistinctly, Gross Profit) This ratio is the main indicator used by the Group’s Managements to analyse and measure the performance of
Slide 40: Alternative Performance Measures (4/6)
Alternative Performance Measures (4/6) o Operating costs: this term is composed of logistics networks costs, commercial expenses, research expenses and head offices expenses that are directly related to the revenue obtained by the Group in each period It is the main figure used by the Group’s Manage
Slide 41: Alternative Performance Measures (5/6)
Alternative Performance Measures (5/6) o Non-recurring expenses: refers to those expenses that, although they might occur in more than one period, do not have a continuity in time (as opposed to operating expenses) and only affect the accounts in a specific moment This magnitude helps the Group’s Ma
Slide 42: Alternative Performance Measures (6/6)
Alternative Performance Measures (6/6) o Restructuring costs: are the costs incurred by the Group to increase the operating, administrative or commercial efficiency in our company, including the costs related to the reorganization, dismissals and closures or transfers of warehouses or other faciliti
Slide 43: 2020 Results
2020 Results 28 October 2020