Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Investor Presentation (June 2023)
52 slides from Casino, Guichard-perrachon Sa's investor presentation, Jun 26, 2023
Slide 1: Strategic plan and current trading update
Strategic plan and current trading update June 2023 Strictly Strictly confidential confidential
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Casino, Guichard-Perrachon (“Casino” or the “Company”) in the context of the discussions and negotiations between it and certain of its creditors and other stakeholders in respect of a potential restructuring of its financial indebtedness and relat
Slide 3: Agenda
AGENDA 1 Introduction 2 Strategic plan 3 Business plan 4 Current trading 5 Postponement of tax and social charges Strictly confidential 3
Slide 4: 1. Introduction
1. INTRODUCTION Strictly confidential 4
Slide 5: Introduction
INTRODUCTION Legacy capital structure, inherited from a complicated period (Covid-19 and inflation), is no longer appropriate in light of the business environment of the company The objective of the conciliation is to open a stable and funded period for the company and its creditors to reach an
Slide 6: Key objectives of the company for upcoming discussions
KEY OBJECTIVES OF THE COMPANY FOR UPCOMING DISCUSSIONS Raising of at least €900m of New Money under the form of equity, to provide the Company with adequate liquidity going forward to execute its strategy Strengthen liquidity Residual debt to be extended to provide the Group with sufficient head
Slide 7: 2. Strategic plan
2. STRATEGIC PLAN Strictly confidential 7
Slide 8: Strategic vision
STRATEGIC VISION 1 The French food retail market has demonstrated strong historical resilience and steady growth 2 A significant share of the food retail market is highly competitive with low margins as (i) price is the key differentiating factor and (ii) new entrants (discounters) are challenging
Slide 9: A highly differentiated player to capture profitable growth (1/2)
A HIGHLY DIFFERENTIATED PLAYER TO CAPTURE PROFITABLE GROWTH (1/2) Food business Proxi HM/SM 20% of sales1 33% of sales1 Urban areas Rural areas Potential of 12m clients Potential of 40m clients Slowly growing market Growing market, driven by Growing market, mostly driven Price competitiv
Slide 10: A highly differentiated player to capture profitable growth (2/2)
A HIGHLY DIFFERENTIATED PLAYER TO CAPTURE PROFITABLE GROWTH (2/2) Food business Non-food business Monoprix Cdiscount 30% of sales1 12% of sales1 Unique premium positioning and no real Breadth of assortment is key Market features competitor Technological differentiation of essence Business mo
Slide 11: Unique network in strategic French regions
UNIQUE NETWORK IN STRATEGIC FRENCH REGIONS A player Strong in attractive regions ̶ + ~70% of Group sales come from most strategic regions (IDF, PACA, R/A) while they Stores density only account for ~38% of French population (and ~49% of GDP) Undisputed leadership in Paris area ~15% of Group sa
Slide 12: Focus on proximity network strategy
FOCUS ON PROXIMITY NETWORK STRATEGY Proximity network Proximity stores repartition by location type Tourisitic areas Urban areas 21% 43% Countryside 35% 6,313 stores offering high network density across the country Offer adapted to address local specificities trough a diversified portfolio of
Slide 13: Strategic priorities
STRATEGIC PRIORITIES 1 Clear leadership in Proxi with significant untapped growth ambition 2 Reduced exposure to large formats following portfolio rationalization 3 Commercial turnaround of HM/SMs 4 Unique partnership strategy 5 Leadership in non-food ecommerce with Cdiscount Strictly confidential 1
Slide 14: Clear leadership in Proxi with significant untapped growth ambition
1 CLEAR LEADERSHIP IN PROXI WITH SIGNIFICANT UNTAPPED GROWTH AMBITION Specialized in Premium Convenience Parisians’ organic food preferred retail brand (NPS 72) Main Brands # Stores 316 246 178 1,098 6,313 2022 GMV €3.8bn €0.4bn €0.4bn €1.7bn €2.3bn EBITDA 5% 10%1 10%1 10%1 10%1 margin A diversified
Slide 15: Clear leadership in Proxi with significant untapped growth ambition
1 CLEAR LEADERSHIP IN PROXI WITH SIGNIFICANT UNTAPPED GROWTH AMBITION Network evolution (# stores) Sales (€m) 1,984 5,000 1,594 1,477 2,000 1,098 1,282 872 2020 2022 2023 2025 Potential 2022 2023 2025 ambition 1,000 350 225 241 405 178 236 159 2020 2022 2023 2025 Potential 2022 2023 2025 ambition 1,
Slide 16: Focus on Monoprix, a unique premium format (1/2)
1 FOCUS ON MONOPRIX, A UNIQUE PREMIUM FORMAT (1/2) ‘Parisians’ 72 A highly renowned brand of NPS preferred brand’ The leader in Paris A premium positioning in Paris with a replicable model in major cities 30k+ non-food references A diverse product offering with a ~25% 30% unique niche expert
Slide 17: Focus on Monoprix, a unique premium format (2/2)
1 FOCUS ON MONOPRIX, A UNIQUE PREMIUM FORMAT (2/2) Private labels A portfolio of highly reputable private labels, on the food and non- food segments International presence Strong brand which led to an international development Leader in Paris on the organic market with 83 Naturalia stores Part
Slide 18: Monoprix: an ambitious development strategy
1 MONOPRIX: AN AMBITIOUS DEVELOPMENT STRATEGY Unique leadership in Paris reinforced by ecommerce Growth strategy in France and abroad partnerships Chart Title 1 288 1 155 185 Leader in Paris 159 858 276 Leading player in food ecommerce (x2 m/s vs. 117 261 brick-and-mortar stores) 246 490 405 P
Slide 19: Reduced exposure to large formats following portfolio rationalization
2 REDUCED EXPOSURE TO LARGE FORMATS FOLLOWING PORTFOLIO RATIONALIZATION Weight of HM and discount evolution HM and Leader Price sales contribution to France Retail sales 2017 2022 2025 HM & HM & HM & discount discount discount 17% 22% 36% Others 64% Others Others 78% 83% 2011 2013 2019 2020 2022 202
Slide 20: Commercial turnaround of HM/SM
3 COMMERCIAL TURNAROUND OF HM/SM RECENT DROP IN VOLUMES AND MARKET SHARE HM/SM market share evolution Price indices (in pts of market share) 0,2 140 131 0,0 130 127 (0,2) 120 118 (0,4) 110 107 Volume 100 (0,6) -0,5 pt -0,6 pt 90 (0,8) W01 W02 W03 W04 W05 W06 W07 W08 (1,0) (1,2) Casino Casino - Inclu
Slide 21: Commercial turnaround of HM/SMs: price repositioning
COMMERCIAL TURNAROUND OF HM/SMS 3 THANKS TO A STRONG PRICE REPOSITIONING THE TURNAROUND HAS STARTED TO MATERIALIZE Price repositioning (IRI) Direct impact on traffic SM: 109 national (98 after subscription program) HM: 107 national (96 after subscription program) SM: 2023 client traffic (vs. 2022) P
Slide 22: Commercial turnaround of HM/SMs: downsizing and franchising
COMMERCIAL TURNAROUND OF HM/SMS 3 DOWNSIZING OF HM SEGMENT THROUGH STORE DISPOSALS AND CONVERSION OF SM INTO MORE PREMIUM FRANCHISE STORES Reduced exposure thanks to the ITM transaction Franchise development % of franchised stores (SM) Disposals of 22 HM Hyper Frais out of 61 stores Priority giv
Slide 23: Unique partnership strategy (1/2)
4 UNIQUE PARTNERSHIP STRATEGY (1/2) Industrial partnerships with ITM Extension of AUXO Partnership Private Label AgroMousquetaires AUXO partnership between Agreement for the pooling of the Partnership agreement to allow Casino and Intermarché central purchasing centre for Casino to source Butc
Slide 24: Unique partnership strategy (2/2)
4 UNIQUE PARTNERSHIP STRATEGY (2/2) Best-in-class partners on innovative technological solutions Modular solutions to answer the Pioneer food e-commerce Infinity Advertising shift in offline/ online sales partnership in France JV designed to market a retail Since 2017: comprehensive end- Comme
Slide 25: Leadership in non-food ecommerce with Cdiscount
5 LEADERSHIP IN NON-FOOD ECOMMERCE WITH CDISCOUNT Active Requests 3.5bn GMV 8.4M 82M SKUs 15k Merchants 1bn clients p.a. The #2 ecommerce player in France Established leader in e- Online retail market shares in France1 21.8% commerce with a strong French brand benefiting from a large audience 5,8%
Slide 26: Management with strong skillset to deploy this strategy
MANAGEMENT WITH STRONG SKILLSET TO DEPLOY THIS STRATEGY 1) A strong base of operational managers across all banners : Magali Daubinet- Vincent Guillaume Thomas Salen Doumerc Sénéclauze Métivier Casino banners Franprix Monoprix Cdiscount 16 years in the 29 years in the 25 years in the 6 years in e- r
Slide 27: Conclusion
CONCLUSION The Group has built strategic assets and very robust market positions which will fuel future growth & profitability, namely Strong track record of developing successful banners leading to non-replicable store networks in strategic regions, especially in Paris with a leadership positio
Slide 28: 3. Business plan
3. BUSINESS PLAN Strictly confidential 28
Slide 29: Key assumptions underpinning financial trajectory
KEY ASSUMPTIONS UNDERPINNING FINANCIAL TRAJECTORY FCF before EBITDA1 interest Hypermarkets and Supermarkets: ongoing repositioning Adjustment of price level and acceleration of franchising plan Disposal of a first series of non-strategic stores to ITM €(287)m 2023 Monoprix / Franprix and Con
Slide 30: Focus on 2023 (1/4): cash generation impacted by significant one-off items
FOCUS ON 2023 (1/4) CASH GENERATION IMPACTED BY SIGNIFICANT ONE-OFF ITEMS In €m 138 60 427 (186) (140) One-off items (1) €(1,053)m 1,035 (78) (354) (287) (23) (193) EBITDA 2023 FCF items below EBITDA €439m excl. one off items €(517)m (314) (1,129) (739) EBITDA Premium EBITDA EBIT
Slide 31: Focus on 2023 (2/4): savings and asset disposal plan
FOCUS ON 2023 (2/4) A STRONG SAVINGS AND ASSET DISPOSAL PLAN HAS BEEN INITIATED In €m Stores Logistic HQs Total Total costs 153 75 135 362 €362m savings Change in 2022 cost base (5,2)% (7,0)% (14,1)% (7,8)% and efficiency plan €267m savings plan at business unit level €45m structural synergy pla
Slide 32: Focus on 2023 (3/4): projected working capital as of 31/12/2023
FOCUS ON 2023 (3/4) PROJECTED WORKING CAPITAL AS OF 31/12/2023 In €m Dec-22 Dec-23 Var. Receivables 953 994 41 As at December 2023, WCR is expected to land at €(1,539)m out Payables (2,306) (2,060) 246 which €(996)m of WC financing. This reflects a change in WCR of +€739m Inventories 1,563 1,357 (
Slide 33: Focus on 2023 (4/4): projected net debt as of 31/12/2023
FOCUS ON 2023 (4/4) PROJECTED NET DEBT AS OF 31/12/2023 In €m Dec-22 Dec-23 Var. EMTN / HYB 2,287 2,168 (119) 1 Illustrative RCF drawing to finance Quatrim bonds 653 553 (100) 2023 negative cash generation Term Loan B 1,425 1,425 - 2 Other debt evolution is mainly driven by debt reimbursement (Cd
Slide 34: Distribution Casino Finance (1/2): number of stores evolution
DISTRIBUTION CASINO FINANCE (DCF) (1/2) NUMBER OF STORES EVOLUTION In €m 2022A 2023P 2024P 2025P // 2028P Number of stores Hypermarkets 77 77 77 77 77 o/w owned 61 61 61 61 61 o/w Codim 4 4 4 4 4 o/w affiliated & franchised 12 12 12 12 12 Number of stores Supermarkets 475 505 515 525 530 o/w owned 3
Slide 35: Distribution Casino Finance (2/2): key financial indicators
DISTRIBUTION CASINO FINANCE (DCF) (2/2) KEY FINANCIAL INDICATORS In €m 2022A 2023P 2024P 2025P // 2028P Net sales Hypermarkets 3,037 2,539 2,687 2,858 2,993 Net sales Supermarkets 3,398 3,226 3,524 3,556 3,792 Net sales Convenience 1,495 1,670 1,805 1,958 2,087 Net sales DCF 7,930 7,435 8,016 8,372
Slide 36: Monoprix key financial indicators
MONOPRIX KEY FINANCIAL INDICATORS In €m 2022A 2023P 2024P 2025P // 2028P Net sales 4,393 4,467 4,751 5,000 5,437 Retail margin 1,429 1,472 1,547 1,611 1,715 EBITDA after lease payments 226 241 250 260 315 Margin (%) 5.1% 5.4% 5.3% 5.2% 5.8% Non-recurring and other items (87) (79) (65) (41) (25) Oper
Slide 37: Franprix key financial indicators
FRANPRIX KEY FINANCIAL INDICATORS In €m 2022A 2023P 2024P 2025P // 2028P Net sales 1,477 1,594 1,813 1,984 2,273 Retail margin 422 437 468 484 518 EBITDA after lease payments 101 121 135 147 177 Margin (%) 6.8% 7.6% 7.5% 7.4% 7.8% Non-recurring and other items (30) (22) (20) (15) (15) Operating cash
Slide 38: Cdiscount key financial indicators
CDISCOUNT KEY FINANCIAL INDICATORS In €m - as contributed to Casino consolidated accounts 2022A 2023P 2024P 2025P // 2028P GMV (Gross Merchandise Volume) 2,761 2,464 2,419 2,452 2,738 Share of marketplace 51.5% 60.8% 65.4% 68.6% 74.0% Net sales 1,699 1,360 1,350 1,340 1,446 Gross margin 394 392 415
Slide 39: Other activities key financial indicators
OTHER ACTIVITIES KEY FINANCIAL INDICATORS In €m 2022A 2023P 2024P 2025P // 2028P AMC 51 87 79 99 99 IGC & other real estate 73 27 29 31 31 Holdings & Others 27 24 32 34 35 EBITDA other activities 150 138 140 164 166 AMC (structure in charge of price negotiation with suppliers) : This line captures
Slide 40: Consolidated French perimeter including Cdiscount key financial indicators
CONSOLIDATED FRENCH PERIMETER INCLUDING CDISCOUNT KEY FINANCIAL INDICATORS In €m 2022A 2023P 2024P 2025P // 2028P Net sales 15,825 15,304 16,568 17,424 18,805 Retail margin 3,863 3,671 3,828 3,986 4,341 EBITDA after lease payments 686 439 656 803 1,026 Margin (%) 4.3% 2.9% 4.0% 4.6% 5.5% (-) Non-rec
Slide 41: ITM transactions expected impacts (1/2)
ITM TRANSACTIONS EXPECTED IMPACTS (1/2) Stores sale transaction Extension of current alliance Set of 2 new partnerships Disposal of 133 sales outlets Extension of the duration of Purchasing alliance in mainly hypermarkets and the current alliances (Auxo private label food products supermarkets
Slide 42: ITM transactions expected impacts (2/2)
ITM TRANSACTIONS EXPECTED IMPACTS (2/2) Millions of € Estimated full year impact (List A) Sales estimated impact (excl. VAT) -1,367 o/w retail -1,075 Impact of deconsolidation of store o/w fuel -291 EBITDA loss making and purchase gain from new partnerships EBITDA after rents impact 1 +38 Final
Slide 43: 4. Current trading
4. CURRENT TRADING Strictly confidential 43
Slide 44: Sales update as of Q2 2023
SALES UPDATE AS OF Q2 2023 4 weeks Year-on-year growth (in %) Q1 April May Week 23 (W23) Premium and convenience banners 4.6% 1.9% 2.3% 2.7% 7.8% HM/SM (9.9)% (17.7)% (14.6)% (18.3)% (15.9)% Total sales France Retail (0.4)% (7.5)% (6.0)% (5.4)% (2.1)% GMV Cdiscount (15.0)% (18.9)% (16.9)% (12.4)% 0.
Slide 45: Premium and convenience banners still growing
PREMIUM AND CONVENIENCE BANNERS STILL GROWING 4 weeks Year-on-year growth (in %) Q1 April May Week 23 (W23) Franprix 6.0% 3.4% 3.5% 5.3% 7.4% Monoprix 4.2% 2.1% 0.5% 3.7% 8.7% Monoprix City excl. web 5.2% 3.0% 0.3% 4.1% 9.5% Monop 10.0% 4.9% 3.9% 6.4% 12.8% Proximity Casino 4.9% (0.2)% 8.1% (1.6)% 5
Slide 46: Cdiscount marketplace GMV (3P) on a positive trend
CDISCOUNT MARKETPLACE GMV (3P) ON A POSITIVE TREND 4 weeks Q1 April May Week 23 (W23) GMV (comparable) (15.0)% (18.9)% (16.9)% (12.4)% 0.2% o/w Direct GMV (1P) (32.5)% (32.3)% (26.7)% (26.7)% (17.7)% o/w GMV marketplace (3P) (3.7)% 1.1% (5.1)% (0.9)% 14.0% 60.5% 58.5% 62.9% 64.1% Marketplace share 5
Slide 47: HM/SM Q2 sales still negatively impacted (1/2)
HM/SM Q2 SALES STILL NEGATIVELY IMPACTED (1/2) 4 weeks Year-on-year growth (in %) Q1 April May Week 23 (W23) Supermarkets (1) (7.8)% (17.3)% (14.1)% (14.3)% (12.6)% Hypermarkets (12.4)% (20.2)% (14.7)% (17.5)% (18.1)% SM/HM (9.9)% (17.7)% (14.6)% (18.3)% (15.9)% 1 Sequential improvement in client tr
Slide 48: HM/SM Q2 sales still negatively impacted (2/2)
HM/SM Q2 SALES STILL NEGATIVELY IMPACTED (2/2) 2 Market share evolution of HM / SM Market share evolution of HM / SM 0,0 (0,2) Volume (0,4) -0.4 pt -0.6 pt (0,6) -0.5 pt (0,8) -0.7 pt Impact of price repositioning -0.8 pt (1,0) (1,2) -1.0 pt -1.0 pt P1 P2 P3 P4 P5 Market share on P4 and P5 are i
Slide 49: HM/SM turnaround plan
HM/SM TURNAROUND PLAN HM/SM has deployed additional commercial plan through 5 main actions designed and deployed or currently in progress for short-term action : Deployed In progress To be deployed Repositioning done: • Market observation in order to 1 Price repositionning • HM price index < 110 sta
Slide 50: H1 2023 EBITDA will be impacted by price reduction in HM/SM
H1 2023 EBITDA WILL BE IMPACTED BY PRICE REDUCTION IN HM/SM Premium and convenience banners are expected to have positive EBITDA variation Continuation of Q1 trends and expansion plan Cdiscount is also expected to have positive EBITDA variation in growth thanks to: Cost adjustments made in H
Slide 51: 5. Postponement of tax and social charges
5. POSTPONEMENT OF TAX AND SOCIAL CHARGES Strictly confidential 51
Slide 52: Postponement of tax and social charges
POSTPONEMENT OF TAX AND SOCIAL CHARGES The Group has obtained an agreement-in-principle of the French State to postpone tax and social charges due between May and September 2023, representing a total amount of c. €300m Such liabilities will be repaid at closing of the capital structure strengthe
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