Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Casino Group — FY2019 Earnings Presentation
50 slides from Casino, Guichard-perrachon Sa's earnings presentation, Mar 26, 2020
Slide 1: 2019 Full Year Results
2019 FULL YEAR RESULTS 26 March 2020 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 1
Slide 2: Contents
Contents 1 ACTIVITY 2 RESULTS 3 2020 OUTLOOK 4 APPENDICES 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 2
Slide 3: Activity
ACTIVITY Jean-Charles Naouri Chairman and Chief Executive Officer 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 3
Slide 4: 2020 update
2020 update In the context of the Covid-19 crisis, Casino Group is focusing on its core mission of ensuring that all communities have uninterrupted food supplies ▪ The key priority is the implementation of necessary measures to protect the health of employees and customers at all workplaces and in a
Slide 5: Significant events for the Group in 2019
Significant events for the Group in 2019 France ▪ Acceleration of strategic repositioning to focus on buoyant formats, with the disposal of Leader Price bringing the total proceeds from signed disposals under the disposal plan to €2.8bn ▪ Gross sales under banner up +1.9% on a same-store basis ▪ 24
Slide 6: France – Acceleration of strategic repositioning with the sale of Leader Price
France – Acceleration of strategic repositioning with the sale of Leader Price €2.8bn worth of disposals signed to date, with €1.8bn in proceeds received as of end-2019 ▪ On the back of €1.1bn in disposals in 2018, a further €1bn of assets sold in 2019, including store properties, R2C and Vindémia ▪
Slide 7: Latin America – Completion of the project to simplify the Group's structure
Latin America – Completion of the project to simplify the Group's structure All Latin American operations placed under the umbrella of the Brazilian subsidiary, GPA ▪ GPA owns 97% of the capital of the Colombian subsidiary, Éxito, which in turn controls the subsidiaries in Argentina and Uruguay ▪ Ca
Slide 8: Progress on strategic priorities in France
Progress on strategic priorities in France 1 Format and category mix 2 E-commerce and digital solutions 3 New businesses: GreenYellow, Data and Data Centers 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 8
Slide 9: Format and category mix
1 Format and category mix Strategic repositioning on premium and convenience formats ▪ Disposal of Leader Price ▪ Sales and closures of loss-making stores (17 hypermarkets and 18 supermarkets) ▪ Launch of commercial synergies between Franprix and Monoprix Relaunch of expansion on convenience (includ
Slide 10: E-commerce and digital solutions: modernisation of the retail business
2 E-commerce and digital solutions: modernisation of the retail business Autonomous stores ▪ Over 300 autonomous stores generating a 0.8% Q4 increase in customer traffic in France, including 2.3% growth in supermarket traffic ▪ 45% of payments in hypermarkets and 36% in supermarkets made by smartpho
Slide 11: E-commerce and digital solutions: E-commerce
2 E-commerce and digital solutions: E-commerce Extended leadership for Cdiscount ▪ GMV* close to €4bn, up 9% organically ▪ Marketplace share in GMV at 38.1%, up 3.7pts ▪ +3.4pts contribution of B2C services to the growth of GMV ▪ Expansion of the international platform, with GMV up 85% in Q4 Growth
Slide 12: New businesses: GreenYellow, Data and Data Centers
3 New businesses: GreenYellow, Data and Data Centers Faster development of GreenYellow ▪ Tripling of the photovoltaic pipeline to 451MWp at end-2019 ▪ EBITDA of €76m in 2019 ▪ Geographic expansion in Asia, Latin America, Africa and the Indian Ocean region ▪ Development of innovations: floating solar
Slide 13: Results
RESULTS David Lubek Chief Financial Officer 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 13
Slide 14: Preliminary comments
Preliminary comments IFRS 16 ▪ The financial statements have been presented in accordance with IFRS standards and include in 2019 the first application of IFRS 16 "Leases" ▪ The Group elected to apply the "full retrospective" transition method, which led to the restatement of the 2018 financial stat
Slide 15: 2019 key figures
2019 key figures Change 2018 at constant In €m – Post-IFRS 16 restated 2019 Change exch. rates Net sales 34,329 34,645 +0.9% +4.2%* EBITDA 2,669 2,640 -1.1% +0.6% Trading Profit 1,364 1,292 -5.3% -3.1% Trading Profit, 1,252 1,292 +3.2% +5.5% excl. tax credits Underlying net profit, 327 212 -35.4% -3
Slide 16: France Retail results – 2019
France Retail results – 2019 In €m – Post-IFRS 16 2018 restated 2019 Change Consolidated net sales 16,786 16,322 +0.3%* EBITDA 1,413 1,467 +3.8% EBITDA margin (%) 8.4% 9.0% +57bps Trading Profit 618 676 +9.4% Retail 557 622 +11.6% Retail trading margin (%) 3.3% 3.8% +49bps Property development 61 54
Slide 17: E-Commerce (Cdiscount) results – 2019
E-Commerce (Cdiscount) results – 2019 In €m – Post-IFRS 16 2018 restated 2019 Change Organic change GMV* 3,646 3,899 +7.0% +9.1%** Consolidated net sales 1,965 1,966 +0.0% EBITDA 39 69 +77.5% EBITDA margin (%) 2.0% 3.5% +153bps Trading Profit (12) 4 n.m. Trading margin (%) -0.6% 0.2% +83bps ▪ GMV up
Slide 18: Latin America results – 2019
Latin America results – 2019 2018 Change In €m – Post-IFRS 16 restated 2019 Change at constant exch. rates Consolidated net sales 15,577 16,358 +5.0% +9.7%* o/w GPA 11,416 12,290 +7.7% +11.0%* o/w Grupo Éxito 4,153 4,053 -2.4% +6.2%* EBITDA excl. tax credits 1,106 1,104 - 0.1% +3.9% EBITDA margin ex
Slide 19: Underlying net financial expense – 2019
Underlying net financial expense – 2019 2018 restated 2019 Net Interest Total net Net Interest Total net financial expense financial financial expense financial In €m – Post IFRS 16 expense Lease liabilities expense expense Lease liabilities expense France Retail (159) (60) (219) (157) (108) (265) E
Slide 20: Underlying net profit, Group share
Underlying net profit, Group share In €m – Post-IFRS 16 2018 restated 2019 Trading profit and share of profit of equity-accounted investees 1,425 1,338 Financial expenses (629) (716) Income taxes (201) (253) Underlying net profit from continuing operations 594 369 o/w attributable to non-controlling
Slide 21: Underlying diluted earnings per share
Underlying diluted earnings per share In €m – Post-IFRS 16 2018 restated 2019 Weighted average number of ordinary shares before dilution 108,388,996 107,924,134 Underlying net profit, Group share (in €m) 327 212 Dividends payable on perpetual deeply-subordinated bonds (TSSDI) (in €m) (48) (37) Under
Slide 22: Other operating income and expenses
Other operating income and expenses France restructuring costs, excluding Rocade plan Latam and E-commerce In €m – Reported data ▪ Decline in other operating income and expenses 115 93 France 90 79 49 55 28 27 ▪ The increase in non-recurring H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2
Slide 23: Change in net debt by entity
Change in net debt by entity In €m – Post-IFRS 16 2018 restated Change over the period 2019 France Retail (2,724) +441 (2,282) E-commerce (Cdiscount) (199) -22 (221) Latam Retail (1,018) -532 (1,550) o/w GPA (200) -1,775 (1,975) o/w Éxito (423) +1,060 638 o/w Segisor (389) +204 (185) Latam Electroni
Slide 24: Free cash flow France: reductions in inventories and CAPEX
Free cash flow France: reductions in inventories and CAPEX Change in working capital Reported data, in €m ▪ €161m improvement in working capital in 2019, mainly driven by the actions to reduce inventories 161 • Reduction in slow-moving SKUs • Creation of local inventory storage capabilities -120 -13
Slide 25: Free cash flow France
Free cash flow France 2018 In €m – Post-IFRS 16 – continuing operations restated 2019 Change EBITDA 1,413 1,467 +54 ▪ Recurring Free cash flow (-) non-recurring items (excl. Rocade plan) (162) (209) -48 excluding non-recurring items, (-) rent* (512) (614) -102 asset disposal plan and Rocade (-) othe
Slide 26: France net debt
France net debt In €m – Post-IFRS 16 2018 restated 2019 France net debt as of 1 January (3,703) (2,724) Free cash flow* + net proceeds from asset disposal plan and Rocade plan 1,066 1,057 Interest expense (excluding interest on lease liabilities) (133) (161) Dividends paid to shareholders and holder
Slide 27: Finalisation of the refinancing plan, strengthening liquidity and financial structure
Finalisation of the refinancing plan, strengthening the Group’s liquidity and financial structure November 2019 refinancing, made up of a new credit line and new financing New €2.0bn syndicated credit line expiring in October 2023 ▪ Participation of 21 French and international banks ▪ Strengthened l
Slide 28: Bond maturities
Bond maturities Maturities of bond debt at 31 December 2019: €5.7bn* In €m 800 1,000 900 597 720 452 444 508 257 March 2020 May 2021 June 2022 Jan. 2023 Jan. 2024 March 2024 Feb. 2025 Aug. 2026 Bond redemptions details since January 2019 ▪ August 2019 €675m in bonds redeemed at maturity and not refi
Slide 29: Strong liquidity position maintained in France
Strong liquidity position maintained in France ▪ At 31 December 2019, the Group had cash €4.0bn liquidity position and cash equivalents of €1.7bn and a further at 31 December 2019 €193m held in escrow account reserved for bond redemptions €2,331m €1,715m ▪ Casino also had €2.3bn confirmed undrawn cr
Slide 30: 2020 Outlook
2020 OUTLOOK Jean-Charles Naouri Chairman and Chief Executive Officer 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 30
Slide 31: 2020 Outlook
2020 Outlook ▪ Casino is fully committed to secure the supply of populations while ensuring the protection of employees and clients ▪ The Group’s strengths (convenience, E-commerce, automatic payment solutions) are being deployed to meet customers’ needs in the safest possible manner ▪ The Group wil
Slide 32: Appendices
APPENDICES 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 32
Slide 33: Covid-19 crisis: measures
Covid-19 crisis: measures Casino Group is fully committed to carry out its role in ensuring the security of food supplies in France and Latin America ▪ Set up of a daily Crisis Management Committee to prepare the actions to be taken in response to government measures ▪ Reinforcement of sourcing and
Slide 34: Change in assets classified under IFRS 5 – France
Change in assets classified under IFRS 5 – France In €m – Post-IFRS 16 2018 Decrease* New assets 2019 Disposals agreed Asset disposal plan 794 -543 +1,014 1,264 1,000 Rocade plan 194 -174 +140 161 19 Other 115 -46 +72 141 0 Total 1,103 -763 +1,226 1,566 1,019 ▪ At end 2019, the main assets classifie
Slide 35: Net debt by entity – IFRS 16 impact
Net debt by entity – IFRS 16 impact 2018 pre-IFRS 16 2018 2019 In €m restated IFRS 16 impact post-IFRS 16 post-IFRS 16 France Retail (2,709) -14 (2,724) (2,282) E-commerce (Cdiscount) (199) 0 (199) (221) Latam Retail (1,056) +38 (1,018) (1,550) o/w GPA (234) +34 (200) (1,975) o/w Grupo Éxito (426) +
Slide 36: Reconciliation of reported net profit to underlying net profit
Reconciliation of reported net profit to underlying net profit (continuing operations) 2018 2018 2019 In €m – Post-IFRS 16 restated Adjustments underlying 2019 Adjustments underlying Trading Profit 1,364 0 1,364 1,292 0 1,292 Other operating income and expenses (402) 402 0 (719) 719 0 Operating prof
Slide 37: Underlying non-controlling interests
Underlying non-controlling interests 2018 In €m – Post-IFRS 16 restated 2019 France Retail 11 16 Latam Retail 262 155 o/w Grupo Éxito (excl. GPA Food) 42 46 o/w GPA Food 220 109 E-commerce (Cdiscount) (6) (13) Total 267 157 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 37
Slide 38: Consolidated net profit (loss), Group share
Consolidated net profit (loss), Group share 2018 In €m – Post-IFRS 16 restated 2019 Net profit (loss) before taxes 286 (176) Income tax (188) (137) Equity-accounted investees 60 46 Net profit (loss) from continuing operations 159 (268) o/w Group share (60) (384) o/w attributable to non-controlling i
Slide 39: Share of profit of equity-accounted investees
Share of profit of equity-accounted investees 2018 In €m – Post-IFRS 16 restated 2019 France Retail 27 24 o/w Mercialys 30 38 o/w Franprix (7) (10) o/w other 4 (4) Latam Retail 33 21 Total 60 46 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 39
Slide 40: Group free cash flow – Continuing operations
Group free cash flow – Continuing operations 2018 In €m – Post IFRS16 restated 2019 EBITDA 2,669 2,640 (-) non-recurring items (257) (401) (-) other items (head office expenses, dividends on equity-accounted investees) 2 (67) Cash flow from continuing operations 2,414 2,172 Change in working capital
Slide 41: Group net debt
Group net debt 2018 In €m – Post-IFRS 16 restated 2019 Group net debt as of 1 January (4,069) (3,378) Free cash flow* 2,104 1,786 Interest expense (including interest on lease liabilities) (629) (617) Dividends paid to shareholders and holders of TSSDI deeply-subordinated bonds (491) (299) Share buy
Slide 42: Breakdown of consolidated net debt at 31 December 2019
Breakdown of consolidated net debt at 31 December 2019 Cash and cash IFRS 5 In €m – Post-IFRS 16 Gross debt equivalents impact Net debt France Retail (5,563) 1,715 1,566 (2,282) Latam Retail (3,366) 1,778 38 (1,550) E-commerce (Cdiscount) (299) 78 0 (221) Total (9,229) 3,572 1,604 (4,053) 2019 FULL
Slide 43: Property and retail CAPEX – continuing operations
Property and retail CAPEX – continuing operations 2018 2019 In €m – excluding asset Gross Net Gross Net disposal plan CAPEX Disposals CAPEX CAPEX Disposals CAPEX France (559) 388 (171) (354) 126 (229) o/w property CAPEX (67) 216 149 (20) 59 39 o/w retail CAPEX (492) 173 (319) (334) 66 (268) E-commer
Slide 44: Balance sheet and IFRS 16 impact
Balance sheet and IFRS 16 impact 31/12/2018 31/12/2018 restated IFRS 16 restated In €m pre-IFRS 16 impact post-IFRS 16 31/12/2019 Goodwill 8,682 - 8,682 7,489 Property, plant and equipment, intangible assets and investment property 9,439 (835) 8,605 7,902 Right-of-use assets - 4,592 4,592 4,837 Inve
Slide 45: Impact of the application of IFRS 16
Impact of the application of IFRS 16 31/12/2018 restated 31/12/2019 France Latam France Latam In €m Total Retail Retail E-commerce Total Retail Retail E-commerce EBITDA +818 +513 +285 +19 +916 +590 +302 +25 Trading profit +179 +64 +114 +1 +221 +104 +116 +2 Other financial income (220) (60) (156) (4)
Slide 46: France breakdown of cash by subsidiary
France breakdown of cash by subsidiary ▪ Cash position in France: breakdown by entity • The scope includes Casino, Guichard-Perrachon (CGP), the parent company, the French businesses and the wholly-owned holding companies • Within this scope, cash and cash equivalents amounted to €1.7bn at 31 Decemb
Slide 47: Derivative financial instruments included in other liabilities
Derivative financial instruments included in other liabilities % Maturity Interest Notional FV FV In €m – Post-IFRS 16 capital date rate 31/12/2019 at 31/12/2018 at 31/12/2019 E3M GPA TRS 2.9% June 2020 332 (182) (179) +1.99% Note : Valeur hors credit risk 2019 FULL YEAR RESULTS ▪ Thursday, 26 March
Slide 48: Puts included in the balance sheet
Puts included in the balance sheet % Value Value Exercise In €m – Post-IFRS 16 capital at 31/12/2018 at 31/12/2019 period Majority-held Various dates Franprix 47 40 franchised stores Monoprix 3 1 Various dates Distribution Casino France 40% 20 19 2023 Cnova NCI puts 2 2 2022 Any time Uruguay (Disco)
Slide 49: Off-balance sheet puts
Off-balance sheet puts % Value Value Exercise In €m – Post-IFRS 16 capital at 31/12/2018 at 31/12/2019 period Minority-held Various dates Franprix 1 0 franchised stores Monoprix 14 5 Various dates Total 15 5 2019 FULL YEAR RESULTS ▪ Thursday, 26 March 2020 ▪ 49
Slide 50: Disclaimer
Disclaimer This presentation contains forward-looking information and statements about Casino. Forward-looking statements are statements that are not historical facts. These statements include financial forecasts and estimates and their underlying assumptions, statements regarding plans, objectives,