Marr Spa · MIL:MARR
Marr Spa — Investor Presentation (March 2015)
34 slides from Marr Spa's investor presentation, Mar 24, 2015
Slide 1: Company presentation
Company presentation Milan - March 24-25, 2015
Slide 2: Important information
Important information This presentation is being shown to you solely for your information and may not be reproduced, distributed to any other person or published, in whole or in part, for any purpose. The information in this presentation could include forward-looking statements which are based on cu
Slide 3: Table of contents
Table of contents • MARR Group • Reference market • Business overview • Financials – FY 2014 • Appendix 3
Slide 4: MARR at a glance
MARR at a glance • leader in Food supply to Foodservice in Italy P P P P P • market consolidator with 42 years of track P P C&C record and a conservative approach P P C&C P P C&C C&C AG • over 38,000 clients served with a range of C&C P over 10,000 food products including over P P P AG 700 private l
Slide 5: Steady and sustainable growth
Steady and sustainable growth Consolidated Total Revenues €m .1% - 20 1 4 C AGR: +6 2004 Scapa Acquisition of Diversification in bar acquisition Sogema in Turin Acquisition of segment with specialization in 1,441 – expansion in acquisition of New products (ie Baldini) 1,365 Large Cities Catering and
Slide 6: Table of contents
Table of contents • MARR Group • Reference market • Business overview • Financials – FY 2014 • Appendix 6
Slide 7: Italian Foodservice
Italian Foodservice • Italian Foodservice, a market worth over 60 bln Euros (ca 5% GDP) Italian Foodservice – breakdown in value • The Commercial Catering Structured (i.e. Restaurants, pizzerias, hotels Canteens 14% operators 20% etc) represents the main segment of the Italian Foodservice. A fragmen
Slide 8: Supply to Italian Foodservice
Supply to Italian Foodservice Supply* to Foodservice ~ €16-17bn Wholesalers’ segment ~ €11bn *(Food and Beverage) Producers Wholesalers 19% 64% Other Wholesalers 83% MARR ~ 13% Top 3 followers • DAC 1.9% • Pregis 1.4% Retail • Quartiglia 1.0% 17% Market Share in number of clients • Market fragmentat
Slide 9: Table of contents
Table of contents • MARR Group • Reference market • Business overview • Financials – FY 2014 • Appendix 9
Slide 10: Sales - breakdown
Sales - breakdown Client segments Direct sales to Foodservice clients Wholesaler clients National Account 22.0% Products Conservation Consolidated Sales breakdown - FY 2014 10
Slide 11: Sales - breakdown by geography
Sales - breakdown by geography Extra EU 2% 2% 2% EU 0% 12% 8% 6% 5% 3% 15% Italy 7% 5% 92% 1% 2% 13% 0% 4% 5% 1% 5% Southern Italy 4% 22% Northern Italy 48% Label: 5% Central +10% Italy 4 - 10% 31% 1 - 3% 0% breakdown as at December 31, 2014 11
Slide 12: Diversification
Diversification Customers Suppliers Client segment No. customers Product category No. suppliers Grocery 1,165 Street Market > 38,000 Seafood 590 Chains and Groups ca 100 Meat 250 Canteens ca 500 Fruit&Vegetables 75 Wholesalers ca 750 Accessories 120 Total > 39,000 Total 2,200 Top customers Top suppl
Slide 13: Operations – efficiency and variable costs
Operations – efficiency and variable costs Operating activities Other Supply Warehousing Logistics / operating > 38,000 Distribution activities clients 2,200 suppliers 33 distribution centres ca 750 trucks ca 1,000 employees worldwide with products (9 owned) > 700 sales agents in exclusivity 4 local
Slide 14: Logistics / distribution system
Logistics / distribution system Target Completion of Operating Cycle Within 24 Hours from Order Client servicing Procurement Agent - Client Grocery-Meat-Seafood Order Entry Central Division Contact Data Processing Credit Goods in check Bill of Carriage and Invoice EDP Delivery Client Scheduling Issu
Slide 15: Operating priorities
Operating priorities TAKE CARE OF MARR’S FUTURE PEOPLE COVERAGE 20015 CLIENTS WORKING PROFITA CAPITAL BILITY 15
Slide 16: Table of contents
Table of contents • MARR Group • Reference market • Business overview • Financials – FY 2014 • Appendix 16
Slide 17: FY 2014 - Highlights
FY 2014 - Highlights • Reference Market According to Confcommercio data (March, 2015) consumption (in quantity) for “Hotels and out of home food consumption” in 2014 was -1.4%, with an improvement in 4Q (-0.6%) • Sales Against this background, MARR’s Organic growth towards clients of Street Market a
Slide 18: FY 2014 Sales
FY 2014 Sales FY 2013 %ch FY 2014 Total revenues 1,364.7 +5.6% 1,441.4 Total sales 1,343.0 +5.5% 1,417.2 +3.4% 851.0 823.3 +3.2% 311.5 301.8 217.9 +16.9% 254.7 Wholesale National Account Street Market Sales increased in all segments, with also a positive contribution from sales of frozen seafood to
Slide 19: FY 2014 – Trend in SM and NA segments
FY 2014 – Trend in SM and NA segments €m +3.8% 1,162.5 1,125.1 -0.5% * Management of Scapa going concern from February 2013 and divestment of +3.3% Alisea in March 2014 12M 13 Organic Divestment/ 12M 14 Acquisition* • Organic growth in Street Market and National Account segments (+43.1€m) was driven
Slide 20: FY 2014 - Price/mix - volume
FY 2014 - Price/mix - volume Street Market - National Account client segments €m +1.9% 1,162.5 1,125.1 +1.4% % change Price/mix Volume +3.3% Grocery +0.5 +2.5 Meat +1.2 +1.8 Seafood +3.9 +0.9 12M 13 Price/mix Volume 12M 14 • In 2014, the price/mix contribution remained above +1% (+1.5% as at Septemb
Slide 21: FY 2014 - Income statement
FY 2014 - Income statement €m FY 2013 % FY 2014 % % ch Total Revenues 1,364.7 100.0% 1,441.4 100.0% +5.6 Divestment (March 2014) of Alisea (catering service to hospitals) affected: COG’s (1,055.2) -77.4% (1,122.4) -77.9% i) negatively GM (Alisea < Cogs); ii) positively Personnel costs Services (162
Slide 22: FY 2014 - Trade NWC
FY 2014 - Trade NWC 18.9€m 16.8€m like for like reported like for like reported 30.09.13 30.09.14 30.09.14 €m 31.12.13 31.12.14 31.12.14 447.0 444.2 425.3 Accounts Receivable 400.2 396.4 379.6 114 10 7 103 Days 107 100 96 Increase of Inventory is 98.3 106.4 106.4 Inventory 100.7 116.4 116.4 due to s
Slide 23: FY 2014 - Cash flow and Net debt
FY 2014 - Cash flow and Net debt Cash flow Net Debt Net Debt/EBITDA €m €m 31.12.13 31.12.14 194.1 164.6 176.7 165.2 Operating cash flow 52.4 55.4 81.6 53.5 Change in Total NWC (23.6) 14.0 2.0x 1.8x 1.7x Investments (20.2) (11.8) Others (4.9) 0.8 111.8 95.1 Free cash flow 3.7 58.4 29.5 (before div id
Slide 24: FY 2014 – Dividend proposal
FY 2014 – Dividend proposal € 0.74 0.77 EPS DPS 0.71 0.62 0.58 0.58 2012 2013 2014 • Board of Directors proposes for the approval of the AGM of next 28 April a gross dividend per share of 0.62€ (+4 cents or +6.9% compared to the previous year) • Net income not distributed will be allocated to Reserv
Slide 25: Outlook
Outlook ● Expectations for recovery and improvement of internal demand have not yet been evident in the Italian Foodservice ● End of 2014 and start of 2015 showed a slightly recovering trend: in January consumption for “Hotels and out of home food consumption” is no longer negative (Confcommercio, M
Slide 26: Appendix
Appendix • Share price – Shareholding structure • Income statement* • Balance sheet* • Cash flow statement* • Seasonality* • Debt maturity* • Peers comparison * As at December 31, 2014 26
Slide 27: Share price – Shareholding structure
Share price – Shareholding structure 18.3.14 – 19.3.15 Shareholding structure Cremonini SpA 50.4% Free Float 49.6% of which holdings* > 2% MARR FTSE STAR FTSE ALLSHARES • Standard Life Investment 5.0% Share price 15.55€ • Allianz Global Investors 2.3% Market cap 1,023€m no. of shares outstanding 66,
Slide 28: Income statement as at December 31, 2014
Income statement as at December 31, 2014 28
Slide 29: Balance sheet as at December 31, 2014
Balance sheet as at December 31, 2014 MARR Consolidated 31.12.14 31.12.13 31.12.12 31.12.11 31.12.10 31.12.0 9 (€thousand) Net intangible assets 106,270 99,980 100,050 100,116 100,333 100,978 Net tangible assets 68,962 68,282 52,573 54,264 55,817 58,149 Equity investments in other companies 304 304
Slide 30: Cash Flow statement as at December 31, 2014
Cash Flow statement as at December 31, 2014 MARR Consolidated 31.12.14 31.12.13 31.12.12 31.1 2.11 31.12.10 31.12.09 (€thousand) Net profit before minority interests 51,105 47,318 48,990 49,608 4 5,685 38,551 Amortization and depreciation 4,879 4,527 4,252 4,546 4,625 4,753 Change in Staff Severance
Slide 31: Seasonality as at December 31, 2014
Seasonality as at December 31, 2014 €m 450 435.5 422.0 392.3 400 376.1 365.8 346.3 350 323.3 310.8 290.1 300 282.5 269.7 266.2 255.1 250 249.5 234.1 234.9 233.3 223.8 221.8 226.0 226.6 221.5 200 218.3 204.8 208.9 206.7 207.2 194.1 200.2 184.9 186.4 191.4 172.5 171.8 176.7 150 165.2 168.6 156.0 162.0
Slide 32: Gross debt maturity as at December 31, 2014
Gross debt maturity as at December 31, 2014 €m Non-current debt 138.1 78.8 33.9 28.5 16.4 1Y 2Y 2Y-5Y >5Y Consolidated data 32
Slide 33: MARR vs peers
MARR vs peers 7.1% 5.9% 5.8% 4.6% 3.5% 3.5% 3.4% 2.7% 2.0% EBITDA margin EBIT margin Net Income margin 2013-2014 FY 2014 FY 2014 FY ended as at 30 June, 2014 33
Slide 34: Contacts
Contacts Investor Relations Department Antonio Tiso atiso@marr.it tel. +39 0541 746803 mob. +39 331 6873686 Léon Van Lancker lvanlancker@marr.it mob. +39 335 1872014 MARR S.p.A. Via Spagna, 20 - 47921 Rimini (Italy) website www.marr.it 34