Slide 1: FY Results
FY RESULTS VISIT OUR STORES FY 2022 RESULTS RELEASE HERE ADDITIONAL NON-FINANCIAL INFORMATION RELATING TO THE PERIOD (MEDIA PRESENTATION) HERE
Slide 2: Introductory Note
FY RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2
Slide 3: Content
FY RESULTS CONTENT 1. 2022FY SNAPSHOT 6. 2022FY EBITDA PERFORMANCE 6.1. EBITDA 2. 2022FY THE CONTEXT 6.2. EBITDA Margin 3. 2022FY KEY FIGURES 3.1. Income Statement 3.2. Cash Flow 7. 2022FY FINAL REMARKS 3.3. Balance Sheet 4. 2022FY CAPEX 8. OUTLOOK 2023 5. 2022FY SALES PERFORMANCE APPENDIX 5.1. Grou
Slide 4: 2022FY Snapshot (1/2)
FY RESULTS 1. 2022FY SNAPSHOT (1/2) Facing mounting inflation, deteriorating household purchasing power and reduced consumer confidence, our banners invested in margin to limit the increase in food prices and soften trade down effects, delivering a strong SALES -DRIVEN PERFORMANCE Ara €1.9 bn 7.3% R
Slide 5: 2022FY Snapshot (2/2)
FY RESULTS 1. 2022FY SNAPSHOT (2/2) DESPITE PRESSURES ON THE BUSINESSES, THE GROUP MADE SIGNIFICANT PROGRESS ON ITS CORPORATE RESPONSIBILITY FRONTS By the end of 2022, we were included in more than 120 international sustainability indices Through the nutritional reformulation of our Private Brand an
Slide 6: 2022FY The Context
FY RESULTS 2. 2022FY THE CONTEXT Adding to the disruption of supply chains, following the Covid-19 pandemic, food and energy crises fuelled mounting inflation throughout the year Poland: Positive consumer demand supported by the Government’s anti-inflation measures and the Ukrainian refugees staying
Slide 7: 2022FY Key Figures: Income Statement
FY RESULTS 3. 2022FY KEY FIGURES 3.1. INCOME STATEMENT (€ Million) 2022 2021 ∆ Q4 22 Q4 21 ∆ STRONG SALES Net Sales and Services 25,385 20,889 21.5% 6,992 5,683 23.0% PERFORMANCE Gross Profit 5,332 21.0% 4,497 21.5% 18.6% 1,445 20.7% 1,207 21.2% 19.7% DRIVING EBITDA Operating Costs EBITDA -3,479 -13
Slide 8: 2022FY Key Figures: Cash Flow
FY RESULTS 3. 2022FY KEY FIGURES 3.2. CASH FLOW (€ Million) 2022 2021 EBITDA 1,854 1,585 STRONG CASH FLOW Capitalised Operating Leases Payment -294 -277 GENERATION Interest Payment -157 -152 Other Financial Items 0 0 SOLID OPERATIONAL Income Tax -208 -174 DELIVERY Funds From Operations 1,195 982 COM
Slide 9: 2022FY Key Figures: Balance Sheet
FY RESULTS 3. 2022FY KEY FIGURES 3.3. BALANCE SHEET (€ Million) 2022 2021 STRONG BALANCE Net Goodwill 613 618 SHEET Net Fixed Assets 4,589 4,159 Net Rights of Use (RoU) 2,420 2,221 Total Working Capital -3,837 -3,290 Others 161 145 THE BOARD WILL Invested Capital 3,946 3,852 PROPOSE THE Total Borrow
Slide 10: 2022FY Capex
FY RESULTS 4. 2022FY CAPEX STRONGLY New Stores COMMITTED TO 157 Biedronka 13% GROWTH 30 Hebe 10 Pingo Doce EXECUTION OF AN 1 Recheio 15% €1 BN AMBITIOUS 275 Ara INVESTED 48% RENOVATION IN THE 5% YEAR P ROGRAMME Refurbished Stores 367 Biedronka LOGIS TIC 37 Pingo Doce 19% INFRAS TRUCTURE (34 in-depth
Slide 11: Sales Performance: Group
FY RESULTS 5. 2022FY SALES PERFORMANCE 5.1. GROUP • All banners minimised price hikes by absorbing part of the increase registered in the price of goods sold • Strong growth across all banners • Increasing food inflation was a feature of the performance in all banners • Group LFL at 19.6% in the yea
Slide 12: Sales Performance: Biedronka
FY RESULTS 5. 2022FY SALES PERFORMANCE 5.2. BIEDRONKA • Investment in price to minimise inflation to consumers was central to the strategy • Quality of the value proposition continued to evolve – assortment, shopping experience, digital presence and store presence in the neighbourhoods • Market shar
Slide 13: Sales Performance: Hebe
FY RESULTS 5. 2022FY SALES PERFORMANCE 5.3. HEBE • Good sales performance maintained across the period, notwithstanding the recovery against 2021 which was impacted by the pandemic • E-commerce represented c.14% of sales • Online operations launched in Q4 in Czechia and Slovakia LFL Sales Growth Sal
Slide 14: Sales Performance: Pingo Doce
FY RESULTS 5. 2022FY SALES PERFORMANCE 5.4. PINGO DOCE • Reinforced saving opportunities for families – price and promotions – to limit price increases to consumers • Mounting food inflation led to trading down • The banner reinforced its differentiated position in Perishables, Private Brand and Mea
Slide 15: Sales Performance: Recheio
FY RESULTS 5. 2022FY SALES PERFORMANCE 5.5. RECHEIO • Strong performance against 2021 that was still impacted by restriction related with the management of the pandemic • Increase in tourism benefiting HoReCa recovery in the country • One new store opened in Cascais, focused on serving HoReCa in the
Slide 16: Sales Performance: Ara
FY RESULTS 5. 2022FY SALES PERFORMANCE 5.6. ARA • The right offer and reinforced low-price positioning drove strong LFL performance • High food inflation driving trading down trend • Enhanced awareness and increased market share LFL Sales Growth Sales (Mn €) 2021 2022 48.9% 39.5% 39.5% 33.6% 31.5% 2
Slide 17: 2022FY EBITDA Performance: EBITDA
FY RESULTS 6. 2022FY EBITDA PERFORMANCE 6.1. EBITDA • Our focus on competitiveness and volume protection drove solid EBITDA delivery across all banners Contribution to EBITDA Growth (Mn €) +19.7% +17.0% 17
Slide 18: 2022FY EBITDA Performance: EBITDA Margin
FY RESULTS 6. 2022FY EBITDA PERFORMANCE 6.2. EBITDA MARGIN • Margin pressure reflects our decision to absorb part of the price increases registered in the costs of goods sold • Biedronka margin reflected investment in price competitiveness together with cost inflation mainly of electricity and fuel
Slide 19: 2022FY Final Remarks
FY RESULTS 7. 2022FY FINAL REMARKS We ended 2022 with stronger market positions, enhanced value propositions (price, assortment and presence & quality of store networks) and a reinforced balance sheet All banners worked hard to contain the price increase from our suppliers and to win the recognition
Slide 20: Outlook 2023: The Context
FY RESULTS 8. OUTLOOK 2023 THE CONTEXT Persistent high inflation in the start of the year Minimum national wages revised Looking ahead… Very low consumer confidence Unemployment rate under control Uncertain context Cautious consumer behaviour Disinflation expected for the year although difficult to
Slide 21: Outlook 2023: Our Strategic Vision
FY RESULTS 8. OUTLOOK 2023 OUR STRATEGIC VISION In challenging circumstances we continue to stand by consumers, investing to guarantee price competitiveness and to create valuable promotions Consumers’ preference should drive sales performance and operational leverage, protecting profitability As we
Slide 22: Outlook 2023: Biedronka
FY RESULTS 8. OUTLOOK 2023 BIEDRONKA The more cautious consumer BIEDRONKA will keep the investment Seizing the opportunity for its model, behaviour, which has in price competitiveness at the centre Biedronka plans to add 130-150 net intensified since the last of its priorities, guaranteeing consumer
Slide 23: Outlook 2023: Pingo Doce & Recheio
FY RESULTS 8. OUTLOOK 2023 PINGO DOCE & RECHEIO In Portugal, the challenges PINGO DOCE, will invest in PINGO DOCE will accelerate its raised by the fragility of promotional dynamics, maintaining a refurbishment program to roll out a consumption and trading down low-price policy store model that refl
Slide 24: Outlook 2023: Ara
FY RESULTS 8. OUTLOOK 2023 ARA In Colombia, we continue to see ARA will remain firm in its commitment to Expansion will also be a priority and declines in real disposable low prices in a context that is expected to the banner plans to add more than 200 incomes, with very high food be extremely diffi
Slide 25: Outlook 2023: Corporate Responsibility (1/2)
FY RESULTS 8. OUTLOOK 2023 | CORPORATE RESPONSIBILITY (1/2) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS Develop in all banners food solutions that are healthier and respond to specific nutritional needs (vegan, lactose-free and/or gluten- free solutions, children, ageing peop
Slide 26: Outlook 2023: Corporate Responsibility (2/2)
FY RESULTS 8. OUTLOOK 2023 | CORPORATE RESPONSIBILITY (2/2) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS Strengthen the involvement in social projects in all geographies, targeted to children, youngsters and elderly people from vulnerable environments, focusing on aspects of h
Slide 27: Outlook 2023: Final Remarks
FY RESULTS 8. OUTLOOK 2023 FINAL REMARKS We ended 2022 with stronger market positions, enhanced value propositions (price, assortment and presence & quality of store networks) and a reinforced balance sheet 2023 context will be challenging Good quality offers, efficient models, price Our solid balan
Slide 28: Q&A
FY RESULTS Q&A Group CFO Ana Luísa Virgínia 28
Slide 29: Appendix
FY RESULTS APPENDIX 2022 CORPORATE RESPONSIBILITY HIGHLIGTHS FINANCIAL STATEMENTS 29
Slide 30: Corporate Responsibility Highlights (1/3)
FY RESULTS 2022 CORPORATE RESPONSIBILITY PROMOTING GOOD HEALTH THROUGH FOOD Making quality food available, safe, and accessible HIGHLIGHTS (1/3) Through the nutritional reformulation of our Private Brand and perishable products, we have prevented 753 tonnes of sugar, 271 tonnes of fat and 121 tonn
Slide 31: Corporate Responsibility Highlights (2/3)
FY RESULTS 2022 CORPORATE RESPONSIBILITY SOURCING RESPONSIBLY HIGHLIGHTS (2/3) Integrate social and environmental criteria throughout the supply chain 91% of food purchases were sourced from local suppliers 100% of the palm oil used in our Private Brands and perishables in Poland and Portugal ha
Slide 32: Corporate Responsibility Highlights (3/3)
FY RESULTS 2022 CORPORATE RESPONSIBILITY HIGHLIGHTS (3/3) BEING A BENCHMARK EMPLOYER Create jobs, ensure fair and adequate pay, and provide safe and stimulating working environments Our workforce increased by 6.2% (7,636 more people) We invested 289 million euros in measures to recognise employe
Slide 33: Financial Statements (1/11): Income Statement
FY RESULTS FINANCIAL STATEMENTS (1/11) INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) 2022 2021 ∆ Q4 22 Q4 21 ∆ Net Sales and Services 25,385 20,889 21.5% 6,992 5,683 23.0% Gross Profit 5,332 21.0% 4,497 21.5% 18.6% 1,445 20.7% 1,207 21.2% 19.7% Operating Costs -3,913 -15.4% -3,322 -15.9
Slide 34: Financial Statements (2/11): Cash Flow
FY RESULTS FINANCIAL STATEMENTS (2/11) CASH FLOW (Excl. IFRS16) (€ Million) 2022 2021 EBITDA 1,419 1,175 Interest Payment -18 -22 Other Financial Items 0 0 Income Tax -208 -174 Funds From Operations 1,193 979 Capex Payment -938 -604 Change in Working Capital 534 375 Others -84 -26 Cash Flow 706 723
Slide 35: Financial Statements (3/11): Balance Sheet
FY RESULTS FINANCIAL STATEMENTS (3/11) BALANCE SHEET (Excl. IFRS16) (€ Million) 2022 2021 Net Goodwill 613 618 Net Fixed Assets 4,589 4,159 Total Working Capital -3,832 -3,287 Others 132 121 Invested Capital 1,501 1,611 Total Borrowings 470 460 Financial Leases 82 22 Accrued Interest 14 0 Cash and C
Slide 36: Financial Statements (4/11): EBITDA Breakdown
FY RESULTS FINANCIAL STATEMENTS (4/11) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) 2022 Mg 2021 Mg 2022 Mg 2021 Mg Biedronka 1,540 8.8% 1,339 9.2% 1,246 7.1% 1,060 7.3% Hebe 32 9.0% 25 9.0% 8 2.2% 0 0.1% Pingo Doce 265 5.9% 244 6.0% 198 4.4% 180 4.5% Recheio 59 5.1% 43 4.7% 53 4.6% 38 4.2% Ara
Slide 37: Financial Statements (5/11): Financial Results
FY RESULTS FINANCIAL STATEMENTS (5/11) FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) 2022 2021 2022 2021 Net Interest -11 -16 -11 -16 Interests on Capitalised Operating Leases -138 -130 - - Exchange Differences -4 -3 1 0 Others -8 -5 -8 -5 Net Financial Costs -162 -154 -19 -22 37
Slide 38: Financial Statements (6/11): Sales Breakdown
FY RESULTS FINANCIAL STATEMENTS (6/11) SALES BREAKDOWN 2022 2021 ∆% Q4 22 Q4 21 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 17,582 69.3% 14,542 69.6% 24.1% 20.9% 4,856 69.5% 3,912 68.8% 27.1% 24.1% Hebe 358 1.4% 278 1.3% 32.2% 28.7% 106 1.5% 84 1.5% 29.0% 25.
Slide 39: Financial Statements (7/11): Sales Growth
FY RESULTS FINANCIAL STATEMENTS (7/11) SALES GROWTH Total Sales Growth LFL Growth Q1 22 Q2 22 H1 22 Q3 22 9M 22 Q4 22 2022 Q1 22 Q2 22 H1 22 Q3 22 9M 22 Q4 22 2022 Biedronka Euro 13.4% 23.7% 18.7% 21.6% 19.7% 24.1% 20.9% PLN 15.4% 26.9% 21.3% 26.4% 23.0% 27.1% 24.1% 12.2% 22.5% 17.5% 23.3% 19.5% 23.
Slide 40: Financial Statements (8/11): Store Network
FY RESULTS FINANCIAL STATEMENTS (8/11) STORE NETWORK Openings Closings Number of Stores 2021 2022 Q1 22 Q2 22 Q3 22 Q4 22 2022 Biedronka * 3,250 16 24 25 92 12 3,395 Hebe 291 3 5 5 17 6 315 Pingo Doce 465 2 1 4 3 3 472 Recheio 42 0 0 1 0 0 43 Ara 819 14 43 29 189 1 1,093 Closings/ Openings Sales Are
Slide 41: Financial Statements (9/11): Capex
FY RESULTS FINANCIAL STATEMENTS (9/11) CAPEX (€ Million) 2022 Weight 2021 Weight Biedronka 485 48% 438 63% Pingo Doce 195 19% 104 15% Recheio 48 5% 30 4% Ara 156 15% 81 12% Others 129 13% 37 5% Total CAPEX 1,013 100% 690 100% 41
Slide 42: Financial Statements (10/11): Working Capital
FY RESULTS FINANCIAL STATEMENTS (10/11) WORKING CAPITAL IFRS16 Excl. IFRS16 (€ Million) 2022 2021 2022 2021 Inventories 1,511 1,119 1,511 1,119 in days of sales 22 20 22 20 Customers 51 41 51 41 in days of sales 1 1 1 1 Suppliers 1 -4,191 -3,408 -4,191 -3,408 in days of sales 1 -60 -60 -60 -60 Other
Slide 43: Financial Statements (11/11): Total Borrowings & Financial Leasings
FY RESULTS FINANCIAL STATEMENTS (11/11) TOTAL BORROWINGS & FINANCIAL (€ Million) 2022 2021 LEASINGS Long Term Borrowings / Financial leases 309 364 as % of Total 56.0% 75.5% Average Maturity (years) 3.7 3.5 Short Term Borrowings / Financial leases 243 118 as % of Total 44.0% 24.5% Total Borrowings /
Slide 44: Disclaimer
FY RESULTS DISCLAIMER Statements in this presentation that are forward-looking are based on current expectations of future events and are subject to risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertaint
Slide 45: Jerónimo Martins
Jerénimo Martins