Label'vie Sa · CSEMA:LBV
Label'vie Sa — H1 2023 Earnings Presentation
39 slides from Label'vie Sa's earnings presentation, September 2023
Slide 1: Investor Presentation Half Year 2023
INVESTOR PRESENTATION Half year 2023 1
Slide 2: Introduction
INTRODUCTION 1 MACROECONOMIC ENVIRONMENT AND MARKET SHARE 1. – Macro Economic Indicators 2. – Market Share 3. – Market Share by Key Players 2 REVIEW OF MAJOR EVENTS IN THE FIRST HALF 1. – Franchise Program 2. – Network Expansion 3. – Bond Issuance 4. – Purchasing Power Support 5. – Loyalty Program 6
Slide 3: Introduction
INTRODUCTION LabelVie
Slide 4: Introduction
INTRODUCTION • LabelVie Group continues its anti-inflation policy aimed at supporting the purchasing power of its customers and retaining them, which has resulted in increased sales volumes and footfall • Strengthening of this approach with the launch of the Group’s loyalty program «Club Carrefour»
Slide 5: Macroeconomic Environment and Market Share
MACROECONOMIC ENVIRONMENT AND MARKET SHARE
Slide 6: Macroeconomic Environment: Economic Situation in Morocco
1- Macroeconomic Environment 1.1 – Economic Situation in 2023 GDP ( Gross Domestic Product ) Inflation Consumer Price Index» (CPI) The Morocco experiences economic In Morocco... inflation persists The Consumer Price Index (CPI) for the growth in the first half of 2 0 2 3 month of June 2023 In the fi
Slide 7: Market share for Carrefour and Carrefour Market
1- Macroeconomic Environment 1.2 – Market share for Carrefour et Carrefour Market The market share as of the end of June 2023 (FMCG) for both segments stands at 36.8%, representing a gain of +0.8 percentage points com- pared to 2022. +0.8 pts +0.9 pts -0.1 pts 13.6% 13.5% 22.4% 23.3% 36% 36.8% *Sour
Slide 8: Market Shares by major players in the retail sector
1- Macroeconomic Environment 1.3 – Market Shares by major players in the retail sector Au 31/12/2022 Au 3 0 / 0 6 / 2 0 2 3 Retail brands Category Number Sales Market Number Sales Market of stores area (m 2 ) share (m 2 ) of stores area (m 2 ) share (m 2 ) Marjane Holding 111 327 800 43,25% 115 332
Slide 9: Review of Key Events in the First Half 2023
REVIEW OF KEY EVENTS IN THE 1 HALF 2023 ST
Slide 10: Key events 2023
2 – Review of key events in the first half year Key events 2023 H1-2023: A Semester Filled with Events and Challenges Network expansion SUPPORT FOR PURCHASING POWER Franchise launch : Under the Carrefour Express Brand 06 store openings 161 total number of stores Anti inflation program Bond Issuance
Slide 11: Franchise Program: Carrefour Partner Program by LabelVie
FRANCHISE PROGRAM : CARREFOUR PARTNER PROGRAM BY LABELVIE 1 1
Slide 12: Franchise: Carrefour Partner Program
2 – Review of key events in the first half year 2.1 - Franchise : Carrefour Partner Program The Franchise... a new growth lever for the Group. Goals • Faster expansion of the «Carrefour Express» network across the Moroccan territory • Improved profitability of existing stores by transitioning to a f
Slide 13: Network Expansion
NETWORK EXPANSION 1 3
Slide 14: Summary of Store Openings
2 – Review of key events in the first half year 2.2 - SUMMARY OF STORE OPENINGS • Opening of 6 additional stores during H1 2023 • 3 239m2 square meters opened in H1 2023 Group Brands Number of stores 2022 115 15 12 13 155 m 2 of sales 113.717 2.244 65.900 65.714 247.575 % of Group Total 46% 1% 27% 2
Slide 15: New Store Openings – Detailed Information
2 – Review of key events in the first half year NEW STORE OPENINGS – DETAILED INFORMATION Opening of 06 Carrefour Market stores, bringing the total number to 121 stores by the end of the first half of 2023 MARRAKECH – IZDIHAR RABAT – HASSAN CASABLANCA – BERNOUSSI Area : 4 7 0 m 2 Area : 4 4 0 m 2 Ar
Slide 16: New Store Openings – Detailed Information
2 – Review of key events in the first half year NEW STORE OPENINGS – DETAILED INFORMATION CASABLANCA – VILLE VERTE CASABLANCA – HAD SOUALEM MARRAKECH – QUARTIER IZDIHAR Area : 6 4 8 m 2 Area : 768 m 2 Area : 563 m 2 investment : 12,3 Mdhs investment : 9,1 Mdhs investment : 9,1 Mdhs Employees : 55 em
Slide 17: Bond Issuance
BOND ISSUANCE 1 7
Slide 18: Bond Issuance: Private Placement
2 – Review of key events in the first half year 2.3 - Bond Issuance: Private Placement On March 16, 2023, Label’Vie Group SA issued a bond operation with the following terms: • Amount: MAD 1,000m • The bond is structured into three tranches: • A: In fine (bullet payment) over 5 years at a variable i
Slide 19: Support for Purchasing Power
SUPPORT FOR PURCHASING POWER 1 9
Slide 20: Margin Investment in Support of Purchasing Power
2 – Review of key events in the first half year 2.4 - Margin Investment 5 major actions initiated by LabelVie in support of purchasing power. In a context of increasingly pronounced inflation, the Group continues to strengthen its anti-inflation commercial strategy by significant margin investments
Slide 21: Loyalty Program
LOYALTY PROGRAM 2 1
Slide 22: Loyalty Program Club Carrefour
2 – Review of key events in the first half year 2.5 - Loyalty Program Loyalty Program “Club Carrefour” LabelVie Group launched the «Club Carrefour», it’s first loyalty program, fully digital, based on a reward program at each checkout Test Rollout in March 2023 Since September, all stores offer this
Slide 23: Digital Transformation Label Factory
DIGITAL TRANSFORMATION LABEL FACTORY 2 3
Slide 24: Digital Transformation: Key Figures
2 – Review of key events in the first half year 2.6 - DIGITAL TRANSFORMATION: KEY FIGURES Continuation of Digital Factory projects, a dynamic approach with quarterly reviews of impacts and budgets, while maintaining a vigilant approach in considering impacts. 130 employees Frameworks Agiles 343 Spri
Slide 25: Our CSR Achievements
OUR CSR ACHIEVEMENTS 2 5
Slide 26: Our CSR Achievements: Filière Qualité LabelVie
2 – Review of key events in the first half year 2.7 - Our CSR Achievements Filière Qualité LabelVie In response to the quality, traceability, and transparency requirements expressed by customers, LabelVie Group launched the «Filière Qualité LabelVie» brand: a quality label dedicated to «healthy & re
Slide 27: Al Haouz Earthquake: Donation to the Special Fund
2 – Review of key events in the first half year 2.7 - Our CSR Achievements Al Haouz Earthquake: LabelVie Group donates M A D 3 0 m to the special fund. 27
Slide 28: Label Solidaire
2 – Review of key events in the first half year 2.7 - Our CSR Achievements Label Solidaire LabelVie Group launched «LabelSolidaire,» a citizen initiative led with the involvement of volunteer employees who were mobilized for the preparation and distribution of food baskets. + 6 0 0 0 essential food
Slide 29: Employment Promotion: Signing of Agreement
2 – Review of key events in the first half year 2.7 - Our CSR Achievements employment promotion Signing of Agreement: Employment Support Bonus LabelVie Group demonstrates its commitment to sustainable employment in Morocco by signing a tripartite agreement between the MIEPEEC (Ministry of Industry,
Slide 30: Consolidated Financial Statements H1-2023
Consolidated Financial Statements H1-2023
Slide 31: Key Developments and Achievements in MAD m
3 – Consolidated Financial Statements for 2023 3.1 – Key Developments and Achievements in MAD m REVENUE EBITDA NET INCOME CAPEX AND NET MARGIN 7.533,0 559,1 228,1 585,0 224,1 504,5 520,0 6.201,2 +21% 4,9% +10,8% +2% +13% 4,0% 4,4% 3,4% 2022 2023 2022 2023 2022 2023 2022 2023 31
Slide 32: H1 2023 Income Statement
3 – Consolidated Financial Statements for 2023 3.2 – H1 2023 Income Statatement Historical H1-2022 H1-2023 Change Growth rate The consolidated EBITDA shows an increase of +11%, Sales of goods reaching MAD 560m, benefiting from the rise in Back Margin business volumes: Revenue • Revenue Increase: A +
Slide 33: Key Performance Indicators: Sales
3 – Consolidated Financial Statements for H1 2023 3.3 – Key Performance Indicators: Sales SALES BY 161 stores CHANGE IN REVENUE H1 2022 H1 2023 H1 CHANGE AMOUNT % BUSINESS +21,4% Like for like SEGMENT 5 513 835 6 472 339 958 504 17,4 Openings 2023 71 187 290 891 219 705 >100% Openings 2022 17 070 17
Slide 34: Key Performance Indicators: Margins
3 – Consolidated Financial Statements for H1 2023 3.3 – Key Performance Indicators: Margins Stable margin ratios despite an aggressive commercial policy. Margin evolution in MAD Margin evolution as a % of sales 1 pts 16% 1 482 23% 22% 1 276 1 pts 22% 10% 730 753 12% 11% 11% 11% 660 616 Direct Margin
Slide 35: Key Performance Indicators: EBITDA
3 – Consolidated Financial Statements for H1 2023 3.3 - Key Performance Indicators - Earnings Before Interest and Taxes (EBITDA) EBITDA increased by +11%. EBITDA evolution as a % EBITDA evolution in MAD m of sales 11% 0,83 pts 559 9,03 % 8,20 % 505 H1 2022 H1 2023 H1 2022 H1 2023 EBITDA experienced
Slide 36: Key Performance Indicators: Net Income
3 – Consolidated Financial Statements for H1 2023 3.3 - Key Performance Indicators - Net Income A net income increase of +2%, reflecting the Group’s resilience in an uncertain environment. Evolution of net results in MDH Net results evolution as a % of sales 2% 0,65 pts 228 224 4,01% 3,36% Net Resul
Slide 37: Cash and Balance Sheet Items: Actual vs. Historical
3 – Consolidated Financial Statements for 2023 3.4 – Cash and Balance Sheet Items: Actual vs. Historical Financial Indicators 2022 30/06/2023 Evolution Increase in Cash Position of MAD+828m compared to its 2022 level, primarily Amount days Amount days Amount days WC explained by the following factor
Slide 38: Outlook
OUTLOOK LabelVie
Slide 39: Outlook 2023
Outlook 2023 Continuation of the Development Plan: Continuation of Digital Transformation: • LabelVie Group intends to uphold its accelerated LabelVie Group intends to sustain its digital development program by opening 25 stores transformation efforts aimed at enhancing before the end of 2023. busin