Dino Polska Sa · GPW:DNP
Dino Polska Sa — FY2017 Earnings Presentation
24 slides from Dino Polska Sa's earnings presentation, Mar 19, 2018
Slide 1: Full Year 2017 Results Presentation
Full Year 2017 Results Presentation 19th March 2018
Slide 2: Disclaimer
Disclaimer Neither this presentation (the “Presentation”) nor any copy of it nor the information contained herein being issued. and nor may this Presentation nor any copy of it nor the information contained herein be distributed directly or indirectly to or into, the United States, Canada, Australia
Slide 3: Our achievements in 2017
Our achievements in 2017 +147 stores +16.2% LFL y-o-y +34.0% sales y-o-y +39.2% EBITDA1 y-o-y +0.18 pp gross margin y-o-y +0.33 pp EBITDA1 margin y-o-y (1) Adjusted for the IPO-related one-off expenses incurred in 2016 – 2017 3
Slide 4: Network expansion – higher number of stores and geographic composition
Network expansion – higher number of stores and geographic composition Network expansion Regional coverage Net sales area (’000 m2) Stores per 100k inhabitants as of December 31, 2017 (in brackets as of December 31, 2016) 20 25 32 50 81 119 151 192 238 295 0.4 (0.3) No. of stores 1.9 775 (1.1) 2.6 (
Slide 5: Network growth – plots secured for new stores
Network growth – plots secured for new stores +46.4% y-o-y +147 No. of newly opened stores Expanding pipeline 2017 495 338 280 396 197 248 198 +46.4% Store pipeline 138 12/31/2017 y-o-y 82 90 99 59 Dec-14 Jan-00 Dec-15 Jan-00 Dec-16 Jan-00 Dec-17 Jan-00 Plots purchased Preliminary agreements Source:
Slide 6: Proven roll-out capabilities based on store ownership
Proven roll-out capabilities based on store ownership 2011: 154 stores, 1 distribution center 2014: 410 stores, 2 distribution centers 2017: 775 stores, 3 distribution centers, further roll-out Distribution centers Opened stores Preliminary agreements Purchased plots of land and stores under constru
Slide 7: Significant growth of LFL sales
Significant growth of LFL sales Annual 2.6 4.3 3.7 0.9 0.0 (0.9) (0.6) 2.0 Sales mix Inflation (deflation) % Product split by revenue in 2017 Non-food 18.0% 15.5% 16.6% 16.2% 12% Fresh food 14.1% 37% 14.0% 11.3% 10.0% 7.5% 5.4% 5.1% 6.0% 4.3% 4.2% 4.2% 2.7% Dry food, 2.0% 0.8% beverages, 2.0% alcoho
Slide 8: High revenue growth and improvement in the gross margin
High revenue growth and improvement in the gross margin Gross margin 23.2% 23.2% 23.5% 22.9% 23.0% 22.6% 22.5% 23.0% 22.9% 22.5% 22.6% 22.0% Revenues (PLNm) +38.9% r/r 4,516 1,277 1,220 1,108 3,370 +34.0% r/r 917 919 910 826 2,590 707 2,108 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2014 2015 2016 2017 2016 2016 2016
Slide 9: Consistent growth in results and the EBITDA margin
Consistent growth in results and the EBITDA margin1 EBITDA margin 8.6% 8.9% 8.2% 8.7% 9.6% 8.8% 8.9% 9.9% 8.1% 7.5% 7.5% 7.0% +43.6% r/r (EBITDA PLNm) 126.2 401.4 108.9 97.8 23.8 85.9 288.3 +39.2% r/r 87.9 22.5 79.3 20.4 68.0 18.5 68.5 210.2 65.2 17.2 53.1 147.7 14.9 19.2 50.2 102.4 315.5 14.5 86.4
Slide 10: 2017 EBITDA bridge
2017 EBITDA bridge (PLNm) 8.56% 82.1% 8.6% -0.8% 9.1% 0.9% 8.89% + PLN 113.1 million +39.2% -0.7 8.4 0.8 85.9 8.0 65.2 75.9 401.4 314.7 315.5 315.5 288.3 223.1 (1) 2016 2016 2016 Δ Sales Δ Cost of Δ Sales & Δ G&A Δ Other 2017 2017 2017 EBITDA D&A EBIT at a sales marketing operating EBIT D&A EBITDA c
Slide 11: Effective working capital management and strong operating cash flow
Effective working capital management and strong operating cash flow NWC split (1) OCF Structures OCF covering significant share of CapEx(6) needs (days) (PLNm) (PLNm, %) Total NWC: (31) (36) (38) (43) 497 100% 14 84% 131 81% 79% 3 3 4 3 324 497 40 39 39 39 245 25 86 324 47 188 245 188 16 65 44 28 50
Slide 12: Strong balance sheet
Strong balance sheet Net debt structure Net debt/EBITDA(1) Improving debt service (PLNm) 2.6x 380 429 496 485 8.0x 2.0x 7.0x 6.4x 1.7x 100 110 117 1.2x 4.0x 102 118 452 471 362 266 -24 -34 -66 -202 2014 2015 2016 2017 2014 2015 2016 2017 (3) 2014 2015 2016 2017 Interest coverage ratio Cash and cash
Slide 13: Capital expenditures
Capital expenditures1 Incurred in 2017 Planned for 2018 MEAT MEAT STORES, LOGISTICS, PROCESSING STORES, LOGISTICS, PROCESSING LAND PLOTS HEAD OFFICE PLANT LAND PLOTS HEAD OFFICE PLANT 85% 11% 4% ~73% ~17% ~10% PLN 457 million ~ PLN 650 million (1) Defined as the sum of purchase of items of property,
Slide 14: Strategy update
Strategy update 1 Organic store roll-out Over 1,200 stores by the end of 2020 +147 628 stores Stores 2016 2017 2018f 2019f 2020f 2020f 2021f 2022f 2023f 2024f 2 LFL growth 3 Improving profitability + 0.18 pp + 0.33 pp 16.2% Gross margin EBITDA margin LFL growth in 2017 improvement improvement (vs 4.
Slide 15: najblizej Cieblie
najblizej Cieblie 15
Slide 16: Company financial statements (1/5)
Company financial statements (1/5) Profit and loss statement1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 r/r (PLNm) 2014 2015 2016 2017 2016 2016 2016 2016 2017 2017 2017 2017 +/(-) Sales 2 108.0 2 589.6 3 369.5 4 515.9 707.4 826.1 916.6 919.4 910.3 1 108.1 1 220.2 1 277.4 34.0% Cost of sales (1 644.1) (2 004.7)
Slide 17: Company financial statements (2/5)
Company financial statements (2/5) Balance sheet 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (PLNm) 2014 2015 2016 2017 2016 2016 2016 2016 2017 2017 2017 2017 Assets Property. plant and equipment 798.9 1 024.2 1 337.2 1 697.6 1 090.8 1 180.5 1 260.5 1 337.2 1 386.4 1 497.0 1 593.2 1 697.6 Intangible assets 90.7 92.3 9
Slide 18: Company financial statements (3/5)
Company financial statements (3/5) Balance sheet 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (PLNm) 2014 2015 2016 2017 2016 2016 2016 2016 2017 2017 2017 2017 Interest-bearing loans. borrowings and finance lease liabilities 286.0 361.8 452.4 470.6 370.0 399.2 436.7 452.4 487.2 508.5 490.6 470.6 Liabilities under debt
Slide 19: Company financial statements (4/5)
Company financial statements (4/5) Cash flow 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (PLNm) 2014 2015 2016 2017 2016 2016 2016 2016 2017 2017 2017 2017 Cash flows from operating activities Profit before tax 79.3 135.2 186.5 266.0 30.8 44.6 51.5 186.5 38.0 58.7 77.0 92.3 Adjustments for 109.2 110.2 137.9 231.2 (36.3
Slide 20: Company financial statements (5/5)
Company financial statements (5/5) Cash flow 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (PLNm) 2014 2015 2016 2017 2016 2016 2016 2016 2017 2017 2017 2017 Cash flows from investing activities Proceeds from sale of property. plant and equipment and 0.4 0.9 1.1 8.0 0.6 (1.5) (3.1) 1.1 0.1 1.1 6.4 0.4 intangibles Purchas
Slide 21: Contact information
Contact information Grzegorz Uraziński Head of Investor Relations grzegorz.urazinski@marketdino.pl +48 695 234 561 Ul. Ostrowska 122 63-700 Krotoszyn Poland http://grupadino.pl 21
Slide 22: najblizej Cieblie
najblizej Cieblie 22
Slide 23: dino
dino najblizej Cieblie 23
Slide 24: LLL najblizej Ciebie
LLL najblizej Ciebie ee ] 4 we Y \ ages 3 24