Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Casino Group — H1 2017 Earnings Presentation
51 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 27, 2017
Slide 1: 2017 Half-Year Results
2017 half-year results 2017 HALF-YEAR RESULTS 27 July 2017
Slide 2: Half-Year Results
2017 half-year results 2017 HALF-YEAR RESULTS
Slide 3: Key figures - H1 2017
2017 half-year results Key figures - H1 2017 Total Group sales up 9.7% France Retail trading profit: €121m vs €85m in H1 2016, of which €83m for food retail activities vs €36m in H1 2016 Group trading profit: €466m vs €281m in H1 2016, of which €336m vs €211m in H1 2016 excluding tax credit
Slide 4: Preliminary comments
2017 half-year results Preliminary comments IFRS 5 has been applied to the full-year 2016 and H1 2017 financial statements to take into account the disposal of operations in Asia and the planned sale of Via Varejo. – As a result, Via Varejo's operations (including those of Cnova Brazil) were recla
Slide 5: H1 2017 Group key figures (1/2)
2017 half-year results H1 2017 Group key figures (1/2) In €m H1 2016 H1 2017 Change Consolidated net sales 16,950 18,598 +9.7% EBITDA 600 814 +35.7% EBITDA margin 3.5% 4.4% +84bp Trading profit 281 466 +65.6% Trading margin 1.7% 2.5% +85bp 5
Slide 6: H1 2017 Group key figures (2/2)
2017 half-year results H1 2017 Group key figures (2/2) In €m H1 2016 H1 2017 Change Trading profit 281 466 +65.6% Other operating income & expenses (418) (274) +34.5% Financial results (123) (227) -85.2% Income tax benefit 33 26 -22.3% Share of net profit of equity-accounted investees 14 5 -66.4% Ne
Slide 7: Operating profitability by segment
2017 half-year results Operating profitability by segment FRANCE RETAIL E-COMMERCE LATAM RETAIL In €m H1 2017 Change H1 2017 Change H1 2017 Change Consolidated net sales 9,261 +0.0% 871 +2.5% 8,466 +23.8% EBITDA 292 +9.5% (7) n.s. 529 +59.3% EBITDA margin 3.2% +27bp -0.8% n.s. 6.2% +139bp Trading pr
Slide 8: France Retail results – H1 2017
2017 half-year results France Retail results – H1 2017 Sequential improvement Net sales: change H1 2014 H1 2015 H1 2016 H1 2017 in same-store sales between As a % Q1 (+0.2%) and Q2 2017 (+1.8%), (Same-store sales, with a solid performance excluding fuel +0.9% +0.9% in food retail: +0.9% in Q1 and ca
Slide 9: E-Commerce results – H1 2017
2017 half-year results E-Commerce results – H1 2017 GMV Same-store growth* (share of marketplace) €1,370m €1,456m 31% 33% Increase of 10.5% in same-store Marketplace (share in %) GMV H1 2014 H1 2015 H1 2016 H1 2017 H1 Trading profit In €m Operating results reflecting the investments carried out -9 u
Slide 10: Latam Retail results – H1 2017
2017 half-year results Latam Retail results – H1 2017 Net sales: change H1 2014 H1 2015 H1 2016 H1 2017 As a% (Same-store sales, +6.6% excluding fuel +5.3% and calendar effect) +4.2% +2.5% Brazil: successful revitalisation of Extra hypermarkets and rapid development at Assaí 364* Very strong growth
Slide 11: Change in Group net financial debt on a 12-month rolling basis
2017 half-year results Change in Group net financial debt on a 12-month rolling basis at end-June 2017 221 883 6,343 459 461 160 250 5,594 NetNet debt at financial debt Free cash flow Dividends Dividends and Net financial Assets held for sale Share buybacks Change Change and NetNet financial debt de
Slide 12: Change in France net financial debt on a 12-month rolling basis
2017 half-year results Change in France net financial debt on a 12-month rolling basis at end-June 2017 200 300 334 4,314 389 4,027 336 Net Netdebt at 30/06/16 financial debt Free cash Free flowflow cash from Dividends Dividendsand Net financial Assets held for sale Share Share buybacks buybacks and
Slide 13: Breakdown of consolidated net financial debt at June 17
2017 half-year results Breakdown of consolidated net financial debt at 30 June 2017 H1 2016 H1 2017 France (4,027) (4,314) E-commerce (140) (214) Latam Retail (2,263) (1,706) Latam Electronics 87 641 Group (6,343) (5,594) 13
Slide 14: Activity
2017 half-year results ACTIVITY
Slide 15: France Retail
2017 half-year results France Retail
Slide 16: First-half highlights – France
2017 half-year results First-half highlights – France Acceleration of the continued adaptation of every format to consumers' rapidly changing needs: – Improvement of each format itself – Changes in the share of each format within the French mix (whose overall margin improved) – Increase within eac
Slide 17: Monoprix: return to steady growth
2017 half-year results Monoprix: return to steady growth Accelerated growth over the period: – High growth in same-store sales and traffic – +0.1pt gain in P07 Kantar market share Resumption of commercial momentum, driven by: Same-store sales growth – Success of the new loyalty programme, with n
Slide 18: Casino Supermarkets: continuous very good trends
2017 half-year results Casino Supermarkets: continuous very good trends Six consecutive quarters of positive same-store growth: – Same-store sales up 3.2% in Q2 2017 – Growth led by Fresh Same-store sales growth Continued roll-out of the commercial model: – New service counters and success of th
Slide 19: Franprix: excellent performance
2017 half-year results Franprix: excellent performance Very strong sales momentum, with comparable customer traffic up 6.4% in Q2 2017 after rising 4.1% in Q1 2017 A commercial model very well aligned with the needs of urban customers who expect ever more innovation and services Same-store sales
Slide 20: Casino Proximité: improved commercial trends
2017 half-year results Casino Proximité: improved commercial trends Integrated stores: – Store renovations: • Modernisation of the offer including a larger selection in snacking, fresh foods and bulk products, national brands and local assortment Same-store sales growth • Revised opening hours • O
Slide 21: Leader Price: satisfactory performance and ongoing action plans
2017 half-year results Leader Price: satisfactory performance and ongoing action plans Continued recovery in sales in Q2 2017: – Good momentum in the fruit & vegetables corner since the beginning of the year – Improved offering thanks to the deployment of more than 300 new references Same-store sa
Slide 22: Géant: excellent performance in food
2017 half-year results Géant: excellent performance in food and continued adaptation of the commercial model Recovery in same-store growth in Q2 2017: – Increase of 0.8% in Q2 2017 vs -1.9% in Q1 2017 – Continued reduction in retail space, down 1.1% at the end of H1 2017 – Improvement in net sales
Slide 23: E-Commerce
2017 half-year results E-Commerce
Slide 24: Cdiscount: good commercial performance (1/2)
2017 half-year results Cdiscount: good commercial performance (1/2) In Q2 2017, same-store GMV climbed 11.5%* to reach a marketplace Momentum 2 share of 35.0% over the quarter: – Threefold increase in the share of Cdiscount Fulfilment – to the marketplace: 15% in June 2017 from 5% in June 2016 New
Slide 25: Cdiscount: assertive relaunch of action plans (2/2)
2017 half-year results Cdiscount: assertive relaunch of action plans (2/2) IMPROVEMENT OF THE CUSTOMER EXPERIENCE OPTIMISATION OF DELIVERY CONDITIONS Redesign of the mobile site Free express delivery on orders from €10 for CDAV Improvement in the dedicated customer area members on mobile devic
Slide 26: Multi-channel activities within Casino in France
2017 half-year results Multi-channel activities within Casino in France Delivery on foot Monoprix.fr within 1 hour Monoprix&Me app & “Leave your cart” concept Leaderprice.fr Shop & Go Home Apps Geant.fr Delivery within 30mins delivery and websites via the Franprix app Supercasino.fr Delivery within
Slide 27: Latam Retail
2017 half-year results Latam Retail
Slide 28: Éxito (excluding Brazil)
2017 half-year results Éxito (excluding Brazil) Éxito will publish its detailed results on 14 August 2017 The following action plans were already announced by the company in H1: – Continued expansion – Launch by Éxito and Bancolombia of an ambitious loyalty programme, “Puntos Colombia”, targetin
Slide 29: GPA (Brazil) – Multivarejo: good performance of Extra hypermarkets
2017 half-year results GPA (Brazil) – Multivarejo: good performance of Extra hypermarkets Sharp improvement at Extra hypermarkets: same-store sales up 7.6% after -2.5% in the first 9 months of 2016, rising 5% in Q4 2016 and 5.4% in Q1 2017* – Market share gains compared with 2016 Extra hypermarket
Slide 30: GPA (Brazil) - Assaí: continued excellent performance
2017 half-year results GPA (Brazil) - Assaí: continued excellent performance Another excellent performance in Q2: – Strong organic growth* +29.2% – 13.5% same-store growth* – Strong growth in traffic offsetting the effects Organic sales growth* of the slowdown in food inflation – In H1, hypermarke
Slide 31: H2 2017 Perspectives
2017 half-year results H2 2017 PERSPECTIVES
Slide 32: H2 2017 Perspectives – France (1/2)
2017 half-year results H2 2017 Perspectives – France (1/2) MONOPRIX FRANPRIX Strong multi-channel dynamic Completion of the new Mandarine At least 21 new store openings concept roll-out for a total of more than 50 new stores 20 new store openings for a total by the end of 2017 of 50 new stor
Slide 33: H2 2017 Perspectives – France (2/2)
2017 half-year results H2 2017 Perspectives – France (2/2) GÉANT LEADER PRICE Return to break-even led by: Pursuit of operational excellence – Reduction in retail space initiatives – Operational excellence plans – Increase in sales/sq.m CDISCOUNT Continued re-launch of action plans: – Improvem
Slide 34: H2 2017 Perspectives – Brazil
2017 half-year results H2 2017 Perspectives – Brazil GPA Acceleration of cash & carry: objective of 20 new stores over the year, of which 16 from conversions Continued plans in hypermarkets and emphasis now on Pão de Açucar stores’ renovations 34
Slide 35: H2 2017 Perspectives: Profitability objectives revised up
2017 half-year results H2 2017 Perspectives Profitability objectives revised up In light of its good H1 2017 results, the Group revises its guidance for the growth in consolidated trading profit up to at least 20%, at 30 June 2017 closing exchange rates In France, Casino Group now aims to achiev
Slide 36: Appendices
2017 half-year results APPENDICES
Slide 37: Definition of underlying net profit
2017 half-year results Definition of underlying net profit Underlying net profit corresponds to net profit from continuing operations, adjusted for (i) the impact of other operating income and expense, as defined in the Accounting Policies Section in the notes to the annual consolidated financial
Slide 38: Reconciliation of reported net profit to underlying net profit
2017 half-year results Reconciliation of reported net profit to underlying net profit H1 2016 H1 2017 In €m H1 2016 Adjustments underlying H1 2017 Adjustments underlying Trading profit 281 0 281 466 0 466 Other operating income and expenses (418) 418 0 (274) 274 0 Operating profit (loss) (137) 418 2
Slide 39: H1 2017 consolidated EBITDA and trading profit
2017 half-year results H1 2017 consolidated EBITDA and trading profit EBITDA H1 2016 H1 2017 Change At current At constant At current At constant In €m exchange rate exchange rate exchange rate exchange rate France 267 292 291 +9.5% + 8.9% E-commerce 1 (7) (7) n.s. n.s. Latam Retail 332 529 451 +59.
Slide 40: Other operating income and expenses
2017 half-year results Other operating income and expenses O/w O/w Total France Latam Gains and losses on disposal of assets, (77) (62) (13) scope changes and impairment losses Gains and losses on disposal of assets 23 24 (1) Operating income and expenses related (55) (54) (1) to changes in scope Ne
Slide 41: Underlying financial results
2017 half-year results Underlying financial results* H1 2016 H1 2017 Current Constant In €m exchange exchange France Retail (14) (65) (71) E-commerce (12) (18) (18) Latam Retail (143) (163) (142) O/w Éxito (excl.GPA Food) (59) (65) (60) O/w Brazil (84) (98) (82) Total (169) (246) (231) * Underlying
Slide 42: Share of net profit of equity-accounted investees
2017 half-year results Share of net profit of equity-accounted investees H1 2016 H1 2017 France Retail 4 (0) O/w Mercialys 20 13 O/w Franprix Leader Price (20) (15) O/w others 4 1 Latam Retail 11 5 Total 14 5 42
Slide 43: Underlying minority interests
2017 half-year results Underlying minority interests* H1 2016 H1 2017 France Retail 1 2 E-commerce (16) (10) Latam Retail 51 130 O/w Éxito (excl. GPA Food) 19 15 O/w GPA Food 32 115 Total 35 123 * Underlying minority interests represent the share of underlying net profit attributable to non-controll
Slide 44: Underlying net income and EPS
2017 half-year results Underlying net income and EPS H1 2016 H1 2017 Weighted average number of ordinary shares before dilution 112,071,429 110,852,275 Underlying net profit, Group share (in €m) 56 48 Dividends payable on perpetual deeply subordinated bonds (TSSDI) (46) (43) (in €m) Income payable o
Slide 45: Cash flow statement
2017 half-year results Cash flow statement In €m H1 2016 H1 2017 Net debt at beginning of the period (6,073) (3,367) Cash flow 503 794 Changes in WCR (2,686) (2,646) Taxes paid (111) (40) Cash flow from operations, net of income tax (2,294) (1,892) Acquisitions of tangible, intangible assets and inv
Slide 46: Consolidated simplified balance sheet
2017 half-year results Consolidated simplified balance sheet In €m H1 2016 H1 2017 Goodwill 10,228 9,214 Intangible assets and property, plan and equipment 12,927 10,921 Investments in equity associates 667 607 Other non-current assets 2,051 1,384 Deferred tax assets 519 700 Inventories 5,016 3,967
Slide 47: Net CAPEX by entity
2017 half-year results Net CAPEX by entity In €m H1 2016 H1 2017 France 285 206 E-commerce 15 21 Latam Retail 206 224 Total* 506 452 47 * Group CAPEX excluding data concerning Asia and Latam Electronics
Slide 48: Derivative financial instruments included in other liabilities
2017 half-year results Derivative financial instruments included in other liabilities % FV FV In €m capital Maturity date Interest rate Notional at 30/06/2016 at 30/06/2017 Libor 3M GPA forward 2.2% February 2020 209 (232) (109) +2.04% E3M GPA TRS 2.9% June 2018 332 (226) (200) +2.695% Total (458) (
Slide 49: Puts included in the balance sheet
2017 half-year results Puts included in the balance sheet % Valuation Valuation Exercise In €m capital at 30/06/2016 at 30/06/2017 period Majority-held Various dates Franprix - Leader Price 65 52 franchised stores Any time Monoprix 2 1 end-2017 Any time Uruguay (Disco) 87 110 2021 Total 153 162
Slide 50: Off-balance sheet puts
2017 half-year results Off-balance sheet puts % Valuation Valuation Exercise In €m capital at 30/06/2016 at 30/06/2017 period Minority-held Various dates Franprix - Leader Price 11 3 franchised stores Total 11 3 (off-balance sheet) 50
Slide 51: Disclaimer
2017 half-year results 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 regar