Slide 1: 2019 Results presentation
2019 Results presentation 5 November 2019
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 5 Years Delivering on our objectives Business Review Financial Review Outlook 2019 Results presentation / 5 November 2019 / Page 3
Slide 4: 2019 Results Highlights
2019 Results Highlights A brilliant year, growing activity and stronger results o Economic Sales growing to €1,149m (+2.8%) • Revenues up by 7.1% to €10,148m, growing in all geographies The change in accounting criteria of Tobacco sales in Portugal affecting comparison (if excluded: +5.0%) • Incre
Slide 5: 5 years Delivering on our objectives
5 years Delivering on our objectives 2019 Results presentation / 5 November 2019 / Page 5
Slide 6: Four building blocks
5 Years Delivering on our objectives Four building blocks Strengthening while growing consolidated business base Expanding business base Our objective: Attractive returns to shareholders Improving efficiency Robust cash flow profile 2019 Results presentation / 5 November 2019 / Page 6
Slide 7: Strengthening/growing consolidated business base (actions)
5 Years Delivering on our objectives Strengthening/growing consolidated business base (actions) Maintaining leadership in tobacco (contracts renewal depends on expiry calendar): o Contracts with the big four tobacco manufacturers have been renewed in all geographies during this 5-year period Growing
Slide 8: Expanding business base (actions)
5 Years Delivering on our objectives Expanding business base (actions) Boosting sales into existing pipeline (wholesale): o Partnership agreements with manufacturers: implementing our business model to transform convenience distribution o Multichannel ordering deployment (websites, stores, cash & ca
Slide 9: Improving efficiency (actions)
5 Years Delivering on our objectives Improving efficiency (actions) Vertical business model: o Externalization of local service points in Spain, streamlining/ optimization of network in Italy o Restructuring measures in France: Tobacco, convenience and Other businesses o Warehouse capacity expansion
Slide 10: Robust cash flow profile
5 Years Delivering on our objectives Robust cash flow profile High average cash conversion: o Since IPO, the average EBITDA conversion into cash has been c. 80% High pay out ratio: o More than 90% of Net Profit has been distributed as dividends Bi-annual dividend payments: o Final dividend correspon
Slide 11: Successful fifth anniversary of Group's re-listing
5 Years Delivering on our objectives Successful fifth anniversary of Group’s re-listing Strengthening while growing Consolidated business Ec. Sales yearly consolidated business base growing, low-single digit Wholesale and Pharma Ec. Sales Expanding business base yearly growing double-digit 5-year Av
Slide 12: Business Review
Business Review 2019 Results presentation / 5 November 2019 / Page 12
Slide 13: Diversification across geographies and activities
Business Review Diversification across geographies and activities Geographical Split Breakdown of activities: Ec. Sales 3 Eco. Sales: €1,149m 1 Other FY 2018: 1,118m 3 FY 2018: €1,118m 1 12% Italy Transport 25% Iberia 22% Tobacco & Related France 51% 66% 24% Adj. EBIT: €262m 2 o Tobacco & Related in
Slide 14: Snapshot by segment
Business Review Snapshot by segment o Increasing tobacco volume and same RSP vs. FY2018 Revenues: €3,157m (+12.3%) o Convenience products strongly growing Iberia Ec. Sales: €582m (+3.6%) o Still robust Transport o Pharma expansion continues Adj. EBIT: €120 (+5.3% ) o Scheduled excise tax increase pa
Slide 15: Iberia
Business Review Iberia o Positive evolution of tobacco volumes: • Cigarette: +0.5% vs. -1.6% Revenues: €2,754m • RYO: +9.7% vs. +1.8% (+14.6%) Tobacco and Related o RSP : Stable in 2019 vs. +5 cents per pack in 2018 Ec. Sales: €278m o Portuguese business keeps on growing, organic and small acquisiti
Slide 16: France
Business Review France o Tobacco volumes decline, but lower price elasticity than expected: • Cigarettes: -6.5% vs. -8.0%; RYO+HTU: -5.5% vs. -8.6% o Excise tax increases planned for FY 2019 completed (50 cents) passed on to RSP. Uneven RSP increases (+50/90 cents) compensating excise taxes and Reve
Slide 17: Italy
Business Review Italy o Almost stable tobacco volumes: • Cigarettes: -3.5% vs. -2.5% ; RYO+HTU: +32.1% vs. +19.7% o RSP increase similar to last year’s (+10/20 cents) in cigarettes category, more than offsetting excise tax increase Revenues: €2,962m (10.2%) Tobacco and o Reduction of excise taxes on
Slide 18: Financial Review
Financial Review 2019 Results presentation / 5 November 2019 / Page 18
Slide 19: Financial Review: P&L
Financial Review: P&L Strong activity performance (€m) 2019 2018 Δ% Revenues 10,148.3 9,476.5 +7.1% o Revenues: Growth of 5.0% (net of accounting changes) mainly due to price increases and Eco. Sales 1,149.0 1,118.2 +2.8% Next Generation Products’ growth o Economic Sales: All activities growing in (
Slide 20: Financial Review: P&L Net Income
Financial Review: P&L Net Income up mid-single digit (€m) 2019 2018 Δ% Profit from operations 204.3 190.5 +7.3% (+) Financial Income 15.0 14.3 +5.2% o Financial Result up by 0.7%: (-) Financial Expenses (2.2) (1.6) (41.0)% • Same interest rate over higher average Profit before taxes 217.1 203.2 +6.9
Slide 21: Financial Review: Treasury
Financial Review: Treasury Annual evolution of cash position 3.200 3.000 2.800 2.600 2.400 o Seasonality driving cash position to its 2.200 peak towards year end 2.000 1.800 o Dividend payments during FY2019 1.600 reached €152m : 1.400 1.200 • March 2019: Final 2018 1.000 • August 2019: Interim 2019
Slide 22: Financial Review: Investments
Financial Review: Investments Investing in differentiation and high-quality services (€m) 2019 2018 Δ% IT investments (technology) 25.1 25.5 (1.6)% o > 50% dedicated to technology Infrastructure 17.5 22.5 (22.1)% o Infrastructure investments reduced as most of Track & trace investments already done
Slide 23: Financial Review: Cash generation
Financial Review: Cash generation (MM€) 2019 2018 Change EBITDA 309.6 295.3 +14.3 Restructuring & Other Payments (12.0) (11.6) (0.4) Financial Results 14.2 12.7 +1.5 o Significant increase of results, a negative Normalised Taxes (68.3) (70.7) +2,4 working capital and the lower payments for the corpo
Slide 24: Financial Review: Dividend Policy
Financial Review: Dividend Policy Flexibility to reflect activity performance o Directors will propose a dividend distribution for year ended September 2019 of c. €156 million • Interim dividend paid in August 2019 (€0.37 per share, c. €49m) • Final dividend per share: €0.81 (number of shares: 132,7
Slide 25: Financial Review: Conclusions
Financial Review: Conclusions Significant Shareholders’ return since IPO o Highly resilient business model o Superior profitability with improving margins Average yearly TSR since IPO*:+11.2% o Robust Economic Cash Flow profile o Attractive Dividend Pay-out profile * Source: Bloomberg, from 11 July
Slide 26: Outlook
Outlook 2019 Results presentation / 5 November 2019 / Page 26
Slide 27: Outlook 2020
Outlook 2020 Adj. EBIT and Net Profit expected to grow mid-single digit o Current trading environment suggests a mid-single digit Adjusted EBIT growth rate in FY2020 o Lower restructuring costs, after French restructuring in 2019 o Similar financial Results if the rate of the ECB maintains at the cu
Slide 28: Appendix
Appendix 2019 Results presentation / 5 November 2019 / Page 28
Slide 29: Tobacco Volumes Evolution
Tobacco Volumes Evolution Relatively good volume performance in all geographies Million units % Y-o-Y Change 1 Oct. 2018 – 30 1 Oct. 2017 – 30 1 Oct. 2016 – 30 1 Oct. 2018 – 30 1 Oct. 2017 – 30 Sept. 2019 Sept. 2018 Sept. 2017 Sept. 2019 Sept. 2018 TOTAL Cigarettes 151,106 155,821 161,646 (3.0)% (3.
Slide 30: Revenues Evolution
Revenues Evolution By segment and activity (€m) 2019 2018 Δ% Iberia 3,157.4 2,812.6 +12.3% Tobacco & Related 2,753.9 2,402.2 +14.6% Transport Services 385.7 366.2 +5.3% Other Businesses 152.2 141.8 +7.3% Adjustments (134.4) (97.6) (37.7)% France 4,069.5 4,021.6 +1.2% Tobacco & Related 3,891.7 3,840.
Slide 31: Economic Sales Evolution
Economic Sales Evolution By segment and activity (€m) 2019 2018 Δ% Iberia 581.6 561.4 +3.6% Tobacco & Related 278.4 272.1 +2.3% Transport Services 270.0 253.0 +6.7% Other Businesses 86.4 84.2 +2.6% Adjustments (53.2) (47.9) (10.9)% France 277.7 264.2 +5.1% Tobacco & Related 233.2 218.6 +6.7% Other B
Slide 32: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) 2019 2018 Δ% Iberia 120.2 114.2 +5.3% France 74.3 65.8 +13.0% Italy 81.0 79.5 +1.9% Corporate & Others (13.6) (13.6) (0.2)% Total Adjusted EBIT 261.9 245.9 +6.5% 2019 Results presentation / 5 November 2019 / Page 32
Slide 33: Balance Sheet
Balance Sheet (€m) 2019 2018 PP&E and other Fixed Assets 228.9 221.5 Net Long Term Financial Assets 18.1 6.8 Net Goodwill 920.8 920.8 Other Intangible Assets 457.1 505.2 Deferred Tax Assets 19.0 18.6 Net Inventory 1,282.8 1,188.5 Net Receivables 1,945.8 1,939.3 Cash & Cash Equivalents 2,211.1 2,064.
Slide 34: 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 gener
Slide 35: 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 36: 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 analysis and measure the performance o
Slide 37: Alternative Performance Measures (4/6)
Alternative Performance Measures (4/6) o Operating costs: this term is composed by the costs of logistics networks, 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’
Slide 38: Alternative Performance Measures (5/6)
Alternative Performance Measures (5/6) o Non-recurring expenses: refers 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 affect only the accounts in a specific moment. This magnitude helps the Group’s Mana
Slide 39: 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 closes or transfers of warehouses or other facilities
Slide 40: 2019 Results presentation
2019 Results presentation 5 November 2019