Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — H1 2022 Earnings Presentation
41 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 28, 2022
Slide 1: 2022 Half-year results
2022 Half-year results - 28 July 2022
Slide 2: Highlights
Highlights Net sales, Q2 2022 Q2 2022 Q1 2022 Reported Same-store Same-store Net sales, in €m Net sales Change change1 change1 France Retail 3,584 +3.1% +3.4% -1.6% Cdiscount 369 -20.4% -20.4% -13.5% Latam Retail 4,467 +31.6% +16.7% +9.7% TOTAL GROUPE 8,420 +14.8% +8.1% +3.2% GMV Cdiscount 881 -10.5
Slide 3: France highlights
France highlights Casino Group returns to growth » The Group's retail banners returned to growth, with same-store net sales up +3.4% in Q2, driven by the expansion and gradual return of tourists › Sharp acceleration for Parisian banners from mid-June › The Group continued to focus on its strategic p
Slide 4: Latin America highlights
Latin America highlights Very good performance from Grupo Éxito and Assaí Net sales EBITDA Trading profit Change at In €m H1 2022 Change Change at CER H1 2022 Change Change at CER1 H1 2022 Change CER1 Grupo Éxito 2,108 +27.9% +23.8% 165 +24.1% +18.9% 98 +36.0% +25.7% Assaí 4,453 +48.1% +26.6% 288 +4
Slide 5: Latin America highlights
Latin America highlights Strong growth at Assaí and repositioning of GPA » Acceleration of Assaí on its profitable business model › Assaí saw +48.1% sales growth in H1 2022, accelerating to +58.9% in Q2 including a positive currency effect › EBITDA was up +40.9% over H1 2022, with an EBITDA margin a
Slide 6: Key figures
Key figures Net sales, EBITDA and trading profit In €m H1 2021 H1 2022 Change Change at CER Net sales – Group 14,480 15,903 +9.8% +3.3% o/w France Retail 6,863 6,935 +1.0% +1.0% o/w Cdiscount 947 795 -16.1% -16.1% Gross merchandise volume 1,991 1,793 -9.9% -9.9% o/w Latam 6,670 8,173 +22.5% +8.3% EB
Slide 7: France
France —_ Casino
Slide 8: 1. Retail banners – France
1. Retail banners – France Return to net sales growth » Return to growth for all banners Same-store net sales growth France Retail 4.7% 3.4% » Ramp-up of expansion, with 376 stores opened in convenience formats in H1 (Franprix, Spar, Vival, etc.) and several Q3 2021 Q4 2021 Q1 2022 Q2 2022 4 weeks t
Slide 9: 1. Retail banners – France: Adapting the sales strategy
1. Retail banners – France Adapting the sales strategy » Casino Group banners have adapted their sales strategy to the inflationary environment Food price inflation in France (source: INSEE) › Strong discounts on a weekly selection of products Quarterly average: 4.6% › Promotion of private-label bra
Slide 10: 2. Cdiscount
2. Cdiscount Back to pre-pandemic trading levels » In a decreasing market, Cdiscount returned to pre-Covid trading levels, with GMV up +2.3% compared to H1 2019, and down -9.9% on H1 2021 high basis for comparison due to the pandemic › Cdiscount captured market share over the last Kantar periods (+0
Slide 11: 3 GreenYellow
3 GreenYellow Expansion in Europe with offices in Poland and Spain » GreenYellow records high level of project pipelines › Solar power advanced pipeline1 of 764 MW, with a pipeline of additional opportunities2 of 3,701 MW › Energy efficiency advanced pipeline1 of 157 GWh, with a pipeline of addition
Slide 12: 4. Corporate social responsibility
4. Corporate social responsibility Promoting more responsible retail » CSR commitment recognised by leading non-financial rating agencies › Casino ranked the no. 1 retailer and no. 8 global company in Moody's ESG ranking1 » Proportion of women on Executive Committee of 40% » Renewal of partnership i
Slide 13: Financial results
Financial results 13
Slide 14: Q2 net sales – Group
Q2 net sales – Group Q2 Group net sales up +15% Q2 2022 Q1 2022 Reported Organic Same-store Same-store Net sales, in €m Net sales change change1 change2 change2 France Retail 3,584 +3.1% +1.8% +3.4% -1.6% Cdiscount 369 -20.4% -20.4% -20.4% -13.5% Latam Retail 4,467 +31.6% +12.4% +16.7% +9.7% GROUP T
Slide 15: Q2 net sales – France Retail
Q2 net sales – France Retail Return to growth for all banners Same-store change1 in sales Reported change in sales Q1 2022 Q2 2022 4 weeks2 Q1 2022 Q2 2022 4 weeks2 Hypermarkets -1.2% +2.9% +1.4% -1.7% -8.1% -16.7% Supermarkets -2.5% +2.4% +3.0% +3.8% +20.7% +25.5% Convenience +3.7% +11.7% +9.6% +5.
Slide 16: Results – France Retail
Results – France Retail EBITDA France Retail down -5.2% over H1 2022 In €m – France Retail Change H1 2021 H1 2022 over 1 year Net sales 6,863 6,935 +1.0%1 EBITDA 569 539 -5.2% EBITDA margin (%) 8.3% 7.8% -52 bps o/w Retail banners2 539 478 -11.3% EBITDA margin (%) 7.9% 6.9% -96 bps o/w Property deve
Slide 17: Results – E-commerce (Cdiscount)
Results – E-commerce (Cdiscount) Stable EBITDA compared to pre-pandemic levels Change Change In €m – E-commerce (Cdiscount) H1 2019 H1 2021 H1 2022 over 1 year over 3 years Gross merchandise volume 1,754 1,991 1,793 -9.9% +2.3% o/w marketplace sales 562 747 668 -10.6% +18.8% o/w direct sales 907 865
Slide 18: Results – Latin America
Results – Latin America Excellent performance from Assaí and Grupo Éxito Change at In €m H1 2021 H1 2022 Change CER Consolidated net sales 6,670 8,173 +22.5% +8.3% o/w Grupo Éxito 1,648 2,108 +27.9% +23.8% o/w Assaí 3,007 4,453 +48.1% +26.6% o/w GPA Brazil 2,014 1,613 -19.9% -31.5% EBITDA excl. tax
Slide 19: Underlying net profit (loss), Group share
Underlying net profit (loss), Group share Underlying net profit (loss), Group share impacted by higher financial expenses in Latin America Underlying net profit (loss), Group share In €m H1 2021 H1 2022 Trading profit and share of profit of equity-accounted investees 469 385 Financial expenses (397)
Slide 20: Disposal plan
Disposal plan Total asset disposals of €4.0bn Cumulative disposal Date Sold assets proceeds ▷ €213m: 15% of Mercialys’ share capital ▷ €742m: Monoprix real estate assets 2018 €1.1bn ▷ €150m: GreenYellow capital increase ▷ R2C ▷ €392m: sales to Fortress 2019 €1.8bn ▷ €327m: sales to Apollo ▷ ~€20
Slide 21: Change in net debt – France excluding GreenYellow
Change in net debt – France excluding GreenYellow Improvement of +€374m in the change in net debt versus H1 2021 In €m – continuing operations France (incl. Cdiscount), excl. GreenYellow H1 2021 H1 2022 EBITDA 589 521 (-) lease payments (325) (303) EBITDA after lease payments 264 219 (-) non-recurri
Slide 22: Net debt
Net debt Group net debt Net debt before IFRS 5 H1 2021 H1 2022 In €m France (4,577) (5,088) o/w France Retail excl. GreenYellow (4,205) (4,589) o/w E-commerce (Cdiscount) (428) (499) o/w GreenYellow 57 0 Latam Retail (1,767) (2,377) o/w GPA Brazil (778) (726) o/w Assaí (851) (1,493) o/w Grupo Éxito
Slide 23: Bond debt – France
Bond debt – France Continued bond buybacks Maturities of bond debt in France at 30 June 2022: €4.7bn1 In €m Unsecured Secured 1425 766 558 460 525 357 400 220 Jan. 2023 Jan. 2024 Mar. 2024 Feb. 2025 Aug. 2025 Jan. 2026 Aug. 2026 Apr. 2027 €199m at €750m at 28 July 28 July » In April 2022, the Group
Slide 24: Liquidity position – France
Liquidity position – France The Group had €2.2bn liquidity position at 30 June 2022 » At 30 June 2022, the Group had in France: €2.2bn liquidity position at 30 June 2022 › €405m1 in cash and cash equivalents › €111m in the secured €1,811m segregated account2 » At that date, the Group also had €1.8bn
Slide 25: Financial covenants – France
Financial covenants – France RCF financial covenants at 30 June 2022 3.54x 3.5x Debt headroom: 3.19x EBITDA headroom: €227m €215m 2.5x Secured gross Limit EBITDA after lease Minimum debt/EBITDA after payments/Net finance lease payments 1 costs » Ratio of secured gross debt to EBITDA (after lease pay
Slide 26: Outlook – 2022
Outlook – 2022 Outlook - France » Amid rising inflation, Casino Group’s priority remains growth and maintaining a good level of profitability to ensure the increase of cash flow generation » The Group returned to growth in H1 2022, despite an unstable economic environment » In H2 2022, amid rising i
Slide 27: Appendices
Appendices 27
Slide 28: ESG ratings
Appendices ESG ratings Indices Rating Scale Dow Jones Sustainability Index 70/100 0 to 100 FTSE 4.1/5 0 to 5 CDP Climate Scoring B D- to A Moody’s 74/100 0 to 100 Sustainalytics 72/100 0 to 100 MSCI AA CCC to AAA Gaia 75/100 0 to 100 » TCFD supporter » Naturalia was awarded B Corp certification » AF
Slide 29: Underlying diluted earnings per share
Appendices Underlying diluted earnings per share Underlying diluted earnings per share H1 2021 H1 2022 Weighted average number of ordinary shares before 107,837,405 107,991,520 dilution Underlying net profit, Group share (in €m) (75) (102) Dividends payable on perpetual deeply-subordinated (36) (43)
Slide 30: Non-recurring expenses
Appendices Non-recurring expenses Other operating income and expenses H1 2021 H1 2022 Change In €m Group 10 (284) (294) o/w cash costs (122) (278) (156) o/w non-cash costs 133 (5) (138) Latam (34) (129) (95) France (France Retail + E-commerce) 44 (155) (199) Cash costs (excl. asset disposal plan and
Slide 31: Underlying net financial expense
Appendices Underlying net financial expense H1 2021 H1 2022 Interest Interest expense Total net expense Total net Net financial Lease financial Net financial Lease financial In €m expense liabilities expense expense liabilities expense France Retail (184) (75) (259) (119) (72) (190) E-commerce (16)
Slide 32: Reconciliation of reported net profit to underlying net profit
Appendices Reconciliation of reported net profit to underlying net profit (continuing operations) H1 2021 restated H1 2022 In €m H1 2021 Adjustments underlying H1 2022 Adjustments underlying Trading profit 440 0 440 380 0 380 Other operating income and 10 (10) 0 (284) 284 0 expenses Operating profit
Slide 33: Underlying non-controlling interests
Appendices Underlying non-controlling interests In €m H1 2021 H1 2022 France Retail 5 3 Latam Retail 92 44 o/w Grupo Éxito 30 31 o/w GPA and Assaí 62 13 E-commerce (Cdiscount) (4) (17) Total 93 30 2022 Half-year results – Thursday, 28 July 2022 33
Slide 34: Consolidated net profit (loss)
Appendices Consolidated net profit (loss) In €m H1 2021 H1 2022 Net profit (loss) before tax 52 (389) Income taxes (44) 112 Equity-accounted investees 29 5 Net profit (loss) from continuing operations 37 (272) o/w Group share (38) (248) o/w attributable to non-controlling interests 75 (24) Net profi
Slide 35: Share of profit of equity-accounted investees
Appendices Share of profit of equity-accounted investees In €m H1 2021 H1 2022 France Retail 19 3 o/w Mercialys 11 (1) o/w Franprix 0 (0) o/w Other 8 5 Latam Retail 10 2 Total 29 5 2022 Half-year results – Thursday, 28 July 2022 35
Slide 36: Breakdown of consolidated net debt after IFRS at June 2022
Appendices Breakdown of consolidated net debt after IFRS 5 at 30 June 2022 Cash and cash IFRS 5 Net debt In €m Gross debt equivalents impact after IFRS 5 France Retail (4,979) 390 778 (3,811) E-commerce (Cdiscount) (514) 15 0 (499) Sub-total France (5,493) 405 778 (4,311) Latam Retail (3,660) 1,283
Slide 37: Net debt June 2022
Appendices Net debt 30 June 2022 Net debt Net debt before Net debt after IFRS 5 In €m IFRS 5 IFRS 5 France (5,088) 778 (4,311) o/w France Retail excl. (4,589) 778 (3,811) GreenYellow o/w E-commerce (Cdiscount) (499) 0 (499) o/w GreenYellow 0 0 0 Latam Retail (2,377) 43 (2,333) o/w GPA Brazil (726) 1
Slide 38: Consolidated income statement
Appendices Consolidated income statement In €m H1 2021 H1 2022 CONTINUING OPERATIONS Net sales 14,480 15,903 Other revenue 224 225 Total revenue 14,704 16,128 Cost of goods sold (11,071) (12,360) Gross margin 3,633 3,768 Selling expenses (2,532) (2,645) General and administrative expenses (660) (743
Slide 39: Consolidated statement of financial position
Appendices Consolidated statement of financial position In €m June 2021 June 2022 Goodwill 6,667 7,017 Property, plant and equipment, intangible assets and investment property 7,059 7,492 Right-of-use assets 4,748 5,074 Investments in equity-accounted investees 201 221 Deferred tax assets 1,195 1,46
Slide 40: Puts included in the statement of financial position
Appendices Puts included in the statement of financial position % Value at Value at Exercise In €m capital 31/12/2021 30/06/2022 period Majority-held Franprix 45 66 Various dates franchised stores Monoprix 3 2 Various dates Casino Participations France 26 26 Various dates Cnova NCI puts 1 1 Q4 2022
Slide 41: Disclaimer
Appendices 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,
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