Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Debt Investor Presentation (October 2019)
35 slides from Casino, Guichard-perrachon Sa's debt investor presentation, Oct 23, 2019
Slide 1: Lender presentation October 2019
Lender presentation October 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Casino, Guichard-Perrachon S.A. (“Casino”) solely for information purposes. By reading the presentation slides or by attending the meeting with reference to this presentation you acknowledge and agree as follows: Confidentiality Undertaking: This pre
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) Indicative terms only; no recommendation: The sole purpose of this presentation is to provide background information to assist prospective lenders in obtaining a general understanding of the business and the outlook of the Companies. This presentation contains only summary inform
Slide 4: Transaction Overview
Transaction Overview GROUPE Casino NourIsHinc A WORLD oF DIVERSITY
Slide 5: Transaction overview
Transaction overview Sources & Uses Sources Amount (€mm) Uses Amount (€mm) New Term Loan B 750 Repayment of existing revolving credit facilities drawings at 30-Jun-19 150 Cash on balance sheet to repay seasonal working capital related Other senior secured debt 750 525 drawings under existing committ
Slide 6: Casino has significant liquidity headroom
Casino has significant liquidity headroom Existing liquidity profile (France Retail & E-Commerce) – as of Jun-191 Cash & cash equivalent Available committed credit lines EMTNs Segisor credit facility (pro forma Latam reorganisation) 2,719 3 2,329 Liquidity 1,759 3 709 (850) (497) (204) (720) (444) (
Slide 7: Group’s structure post Latam reorganisation
Group’s structure post Latam reorganisation Other Senior Secured debt to be issued within the Restricted New Term Loan CGP Existing EMTN Restricted Group Group Facility Bonds CPF DCF Franprix / Subsidiaries Subsidiaries IGC Leader Price Group Subsidiaries 50.0% / Casino Existing 50.0% Banque Syndica
Slide 8: TLB Indicative terms and conditions
TLB Indicative terms and conditions Term Loan B Borrower • Casino Guichard-Perrachon (CGP) • Guarantees: Distribution Casino France; Casino Finance; Monoprix; Segisor upon completion of Guarantors Latam reorganisation Amount • [€750mm] Currency • EUR Maturity • January 2024 Repayment • At maturity •
Slide 9: Indicative RCF Term Sheet
Indicative RCF Term Sheet RCF Borrowers • Casino Guichard Perrachon S.A., Casino Finance and Monoprix • Borrowers, Distribution Casino France and Segisor upon completion of Latam Guarantors reorganisation Amount • [2,000,000,000] • 31-Oct-23 or 31-Oct-22 if no repayment of EMTN Jan-23s ahead of the
Slide 10: Indicative timetable/ key dates
Indicative timetable/ key dates Key dates October November M T W T F S S M T W T F S S 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 9 10 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 Key events TLB Offering 23rd Oct Launch 24th Oct
Slide 11: Today’s presenters
Today’s presenters Julien Lagubeau Deputy CEO David Lubek CFO 10
Slide 12: Company Overview
Company Overview GROUPE NOURISHING AWORLD oF DIVERSITY
Slide 13: Casino at a glance
Casino at a glance Key business highlights Multi-format, multi-banner and multi-channel retailer Omni-channel offering Traditional food retail E-commerce non-food Over 120 years of history E-commerce food retail retail Primary focus on France and Latin America food retail Leading market
Slide 14: A leader in French and LatAm food retail, with high-growth e-commerce operations
A leader in French and LatAm food retail, with high- growth e-commerce operations France Retail Latin America E-commerce 8,640 stores as of June 30, 2019 €2.3bn¹ combined €3.6bn Gross market value of Casino Merchandise Volume in Monoprix – a leading premium convenience player stakes e-commer
Slide 15: Highly experienced top and divisional management
Highly experienced top and divisional management Highly experienced Group management… Jean-Charles Naouri David Lubek Julien Lagubeau Arnaud Strasser Deputy CEO Executive Director, Corporate Chairman and CEO CFO Development and Holdings … and deep bench of talented divisional managers Jean-Paul Moch
Slide 16: Key Credit Strengths
Key Credit Strengths
Slide 17: Key credit strengths of Casino
Key credit strengths of Casino Leading position in French food retail via well positioned formats 1 A leading player in French food retail via well positioned formats 2 Best-in-class food and non-food e-commerce offer 3 Proven ability to adjust Casino’s business model in line with market requirement
Slide 18: The French food retail market is the largest in Europe and consistently growing
1 The French food retail market is the largest in Europe and consistently growing France grocery retail market vs. select Western European nations Grocery retail RSV¹ (€bn) +1.2% +2.0% +1.1% +1.2% +1.9% +2.2% +3.8% 2.1% +2.7% +2.1% 236 251 221 193 136 101 2013 2018 2018 2018 2018 2018 % 2013-18 CAGR
Slide 19: Casino has a leading market position and exposure to the most attractive regions
1 Casino has a leading market position and exposure to the most attractive regions in the country 63% of Casino’s sales are generated in the fastest growing Casino is a top 5 food retailer in France regions of France 8,640 stores within a diversified portfolio of 12 Île-de-France, Rhône-Alpes, C
Slide 20: Casino is focused on the fastest growing market segments
1 Casino is focused on the fastest growing market segments All of Casino’s formats contribute to the Group’s growth France grocery Casino average % Casino France Main Casino Format retail market RSV Casino sales1 last 3 Years Like- Casino’s ranking2 Retail net sales1 banners CAGR 18-232 for-like gro
Slide 21: First-mover in French food retail e-commerce
2 First-mover in French food retail e-commerce, with further non-food retail e-commerce underpin via Cdiscount Fast growing French food retail e-commerce – 2nd largest e-commerce player in France 20m1 monthly unique website visitors H1’19 net sales under banner in food e-commerce of €187m E-co
Slide 22: Transitioning to an asset-light model and further acceleration in new businesses
3 Transitioning to an asset-light model and further acceleration in new businesses Active real estate portfolio management Strong network of franchise partners (as of June 30, 2019) Operational flexibility and balance sheet strength through Casino banners # of franchise stores² % of total selectiv
Slide 23: Proven track-record of successful delivery on planned disposals
4 Proven track-record of successful delivery on planned disposals Disposals summary Disposal Year Timeline Achieved? Commentary amount Thailand and Vietnam 2016 €4.0bn 2016 100% Strong capital gains Non-core assets 100%, ahead of 15% stake of Mercialys 2018 €1.5bn By End 2019 sch
Slide 24: Proven record of financial achievements in France with focus on improved cash flow generation
4 Proven record of financial achievements in France with focus on improved cash flow generation France LFL sales growth1 A successful evolution of France France net debt reduction Retail EBIT and margin In €bn In €m 1.3% 7.6 0.8% 0.6% 518 0.3% 6.1 (3.5%) 421 449 3.7 235 3.2 2.7 170 2014 2015 2016 20
Slide 25: High value investment in leading Latam food retailers
5 High value investment in leading Latam food retailers Leading food retailer and C&C operator in Brazil Strong presence in other Latin American countries #1 food retailer in Brazil1 670 stores operated as of December 31, 2018, 2018 €1.1bn market sales of €4,153m in Colombia, Uruguay, and €1.2bn
Slide 26: Casino’s key strategy pillars
Casino’s key strategy pillars Key credit strengths of Casino Casino’s key strategy pillars 1 A leading player in French food retail via well positioned formats 1 Accelerating leadership in convenience, organic and premium 2 Best-in-class food and non-food e- commerce offer 2 Continue to strengthen C
Slide 27: Historical financials
Histonical financials Casino NOURISHING A “jauamaAWORLD oF DIVERSITY
Slide 28: Casino Group: Key figures (consolidated)
Casino Group: Key figures (consolidated) From continuing operations In €m FY2016 FY2017(2) FY2018 H12018 H12019 Consolidated net sales 36,030 37,490 36,604 17,787 17,841 % growth 5.0% (2.4%) 0.3% Sustained historical organic % organic growth(1) 3.2% 4.7% 3.5% growth in all o.w. France Retail 18,939
Slide 29: Historical financials: France Retail
Historical financials: France Retail France Retail In €m, excl. IFRS 16 2016 2017(2) 2018 H1 2018 H1 2019 Consolidated net sales 18,939 18,799 19,061 9,310 9,044 % growth (0.2%) 1.4% (2.9%) % organic growth(1) 0.1% 1.2% (1.6%) EBITDA 872 882 914 307 296 % margin 4.6% 4.7% 4.8% 3.3% 3.3% Trading prof
Slide 30: Free cash flow: France Retail
Free cash flow: France Retail Free cash flow – France In €m 2017 2018 H1 2019 EBITDA(1) 882 914 296 (-) non-recurring items (231) (220) (76) (-) other items (head office expenses, dividends on equity-accounted (72) (78) (73) investees) Positive and sustained cash flow Cash flow from continuing opera
Slide 31: Free cash flow: France Retail – H1 2019
Free cash flow: France Retail – H1 2019 Decrease in inventories and capex Change in working capital(1) 69 Change in working capital in the first half is usually impacted by an average negative seasonality effect of (€314m) over the last 5 years (247) Inventory reduction plans proceeding as expec
Slide 32: Historical financials: Latam
Historical financials: Latam Latam In €m, excl. IFRS 16 2016 2017(2) 2018 H1 2018 H1 2019 Consolidated net sales 15,247 16,782 15,577 7,601 7,908 % growth 11.0% (7.2%) 4.0% % organic growth(1) 6.4% 8.9% 10.1% o.w. Grupo éxito (excl. GPA) 4,499 4,449 4,153 2,038 1,988 o.w. GPA 10,749 12,333 11,416 5,
Slide 33: Recent developments
Recent developments Group consolidated net sales in Q3’19 of €9,053mm, were up +2.4% on an organic basis and +1.5% on a same store basis Continued France was up +0.2% on a same-store basis (+0.4% excl. Vindemia) topline growth... Cdiscount was up 9.0% on organic basis (GMV) Latam was up 9.6%
Slide 34: Appendix
—_— Appendix “AWAANON INOL GROUPE
Slide 35: Historical financials: E-Commerce
Historical financials: E-Commerce E-Commerce (Cdiscount) In €m, excl. IFRS 16 2016 2017(2) 2018 H1 2018 H1 2019 GMV(1) 2,994 3,304 3,646 1,614 1,752 Consolidated net sales 1,843 1,908 1,965 876 889 Trading profit (loss) (11) (37) (14) (23) (18) Trading margin (0.6%) (1.9%) (0.7%) (2.6%) (2.0%) GMV S
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