Slide 1: FY 2021 Results Release
FY 2021 RESULTS RELEASE HERE ADDITIONAL NON-FINANCIAL INFORMATION RELATING TO THE PERIOD (MEDIA PRESENTATION) HERE
Slide 2: Introductory Note
Jeronimo Martins INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16
Slide 3: 5.1. EBITDA 2.1. Income Statement Q4 5.2. Margin
5.1. EBITDA 2.1. Income Statement Q4 5.2. Margin 2.2. Income Statement FY 2.3. Cash Flow 2.4. Balance Sheet 1. 2021 Our Response 3.1. Group 2. Financial Statements 3.2. Biedronka 3.3. Hebe 3.4. Pingo Doce 3.5. Recheio 3.6. Ara 3
Slide 4: 2021 Highlights (1/2): Remarkable growth and increased profitability
Jeronimo Martins 0. 2021 > All banners renewed the commitment to provide quality at low prices driving Group sales HIGHLIGTHS to surpass the 20 billion euros, a growth of 8.3% (+10.7% excl. FX) with LFL at 8.0% (1 / 2) > The strong sales growth in all banners combined with detailed margin mix manage
Slide 5: Highlights (2/2): Corporate responsibility pillars
0. 2021 HIGHLIGTHS (2/2) IMPORTANT STEPS T0 DELIVER ON OUR CORPORATE RESPONSIBILITY PILLARS the third consecutive year, the Group was classified with a score of (A-) in three of the four commodities associated with deforestation: palm oil, soy, and beef. The Group achieved a ‘B’ for paper and timber
Slide 6: Sales growth by quarter
2020 2021 Poland Portugal Colombia Q1 Q2 Q3 Q4 Poland Portugal Colombia 6
Slide 7: Income Statement Q4
(Million Euro) Q4 21 Q4 20 ∆ Net Sales and Services 5,683 5,096 11.5% Gross Profit 1,207 21.2% 1,110 21.8% 8.7% Operating Costs -767 -13.5% -717 -14.1% 6.9% EBITDA 441 7.8% 394 7.7% 12.0% Depreciation -189 -3.3% -189 -3.7% -0.1% EBIT 252 4.4% 205 4.0% 23.2% Net Financial Costs -35 -0.6% -40 -0.8% -1
Slide 8: Income Statement FY
(Million Euro) FY 21 FY 20 ∆ Net Sales and Service 20,889 19,293 8.3% Gross Profit 4,497 21.5% 4,227 21.9% 6.4% Operating Costs -2,912 -13.9% -2,804 -14.5% 3.9% EBITDA 1,585 7.6% 1,423 7.4% 11.4% Depreciation -745 -3.6% -734 -3.8% 1.5% EBIT 840 4.0% 689 3.6% 21.9% Net Financial Costs -154 -0.7% -180
Slide 9: Cash Flow
(Million Euro) FY 21 FY 20 EBITDA 1,585 1,423 Capitalised Operating Leases Payment -277 -270 Interest Payment -152 -153 Other Financial Items 0 0 Income Tax -174 -174 Funds From Operations 982 826 Capex Payment -604 -510 Change in Working Capital 375 246 Others -29 -46 Cash Flow 723 516 9
Slide 10: Balance Sheet
(Million Euro) FY 21 FY 20 Net Goodwill 618 620 Net Fixed Assets 4,159 3,967 Net Rights of Use (RoU) 2,221 2,154 Total Working Capital -3,290 -2,864 Others 145 133 Invested Capital 3,852 4,010 Total Borrowings 460 524 Financial Leases 22 11 Capitalised Operating Leases 2,365 2,262 Accrued Interest 0
Slide 11: Group sales growth
• • ´ • 2020 2021 10.5% 10.1% 9.5% 8.1% +10.7% +8.3% 3.5% 3.2% 2.2% -0.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 11
Slide 12: Biedronka sales growth
• • • • 2020 2021 11.1% 9.8% 8.8% 8.1% 6.9% 6.5% +11.0% +8.0% 6.0% 4.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12
Slide 13: Hebe sales growth
• • • 38.2% 2020 2021 25.1% 9.0% 1.7% 0.1% -1.7% +16.7% +13.5% -12.5% -26.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * * New stores contribution is net of the closure of the pharma stores 13
Slide 14: Pingo Doce sales growth
• • • 2020 2021 7.3% 4.4% 3.5% 1.0% +4.6% -1.5% -2.0% -1.6% -8.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Includes fuel sales 14
Slide 15: Recheio sales growth
• • 21.1% 18.9% 2020 2021 9.5% 0.1% +7.0% -17.7% -16.2% -19.3% -26.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Includes export activity 15
Slide 16: Ara sales growth
• • • • 2020 2021 39.5% 34.3% 31.5% 22.8% +36.1% +29.0% 11.4% 3.7% 1.1% -1.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16
Slide 17: Sales and capex by banner
(14 in-depth and 1 lifting) Biedronka Pingo Doce Recheio Ara Others 17
Slide 18: EBITDA Performance
Jcronit Marti 5. 2021 - Strong sales performance, detailed margin mix management and increased cost discipline enabled the EBITDA mitigation of the retail tax in Poland, recovery of operational leverage in Portugal and significant progress to reach profitability in Colombia PERFORMANCE 51. EBITDA -
Slide 19: EBITDA margin by banner
• • • • 2020 2021 9.3% 9.2% 9.0% 7.6% 7.4% 7.6% 5.8% 6.0% 4.7% 3.9% 2.3% Biedronka Hebe Pingo Doce Recheio Ara JM -2.4% 19
Slide 20: 2021 Summary
Jeronimo 2021 Martins 6. 2021 SUMMARY “S Ina challenging environment our Companies remained true to the promise of quality at low prices while successfully working to improve value propositions. Market shares increased wD we vole ‘> The strength of the Colombian delivery fuelled the speed of executi
Slide 21: 2022 Outlook (1/8): Uncertain and challenging context
Jeronimo 7. 2022 OUTLOOK (1/8) THE CONTEXT IS UNCERTAINT AND CHALLENGING Martins ‘“S The war initiated in Ukraine will have impacts that at this point are impossible to predict S The rapid increase in food, energy, and transportation prices are today exacerbated by the military conflict and by incre
Slide 22: Group strategic priorities
Focus on consumers’ Enhance the quality of Increase productivity Deliver on the targets set for our needs and expansion value propositions and efficiency pillars of corporate responsibility Strong price and Sales growth and Promoting Good well designed sales mix as the Health through Food promotions
Slide 23: Outlook (3/8): Clear strategic priorities
7. 2022 OUTLOOK (3/8) CLEAR STRATEGIC PRIORITIES G2 > In the current circumstances Biedronka’s priority is to stand by the Polish consumers and live up to its claim in a moment of decrease in disposable income. Despite the poor visibility at this moment over the impact of recent events in Ukraine, p
Slide 24: Outlook (4/8): Clear strategic priorities
7. 2022 OUTLOOK (4/8) CLEAR STRATEGIC PRIORITIES ghebe rowie | plghna » Expand its store network in Poland (opening of c.30 stores in 2022) while continuing to focus on its online growth strategy, which includes expanding its operation into new markets > Price competitiveness and promotions with a c
Slide 25: Outlook (5/8): Clear strategic priorities
Jeronimo 7. 2022 OUTLOOK (5/8) GLEAR STRATEGIC PRIORITIES Martins re) ‘teria. al mejor precio. > Consolidate price leadership and run a dynamic commercial strategy > Develop the assortment to drive an increased share of wallet. Private brand as a key area of the offer Gain scale - expansion as centr
Slide 26: Corporate responsibility targets 2021-2023 (1/2)
Jeronimo Marti 1. 2022 CORPORATE RESPONSIBILITY — WE WILL ADVANGE IN OUR 2021-2023 TARGETS (1/2) OUTLOOK Develop in all banners food solutions that are healthier and respond to specific nutritional needs (6 /8) (vegan, lactose-free and/or gluten-free solutions, children, ageing people, etc) CLEAR Re
Slide 27: Corporate responsibility targets 2021-2023 (2/2)
Jeronimo Marti 1. 2022 CORPORATE RESPONSIBILITY — WE WILL ADVANCE IN OUR 2021-2023 TARGETS (2/2) OUTLOOK Strengthen the involvement in social projects in all geographies, targeted to children, youngsters and (7/8) elderly people from vulnerable environments, focusing on aspects of health and healthy
Slide 28: Outlook (8/8): Summary and capital allocation
L 90292 Acknowledging that we face an unprecedent level of uncertainty ahead of us, we OUTLOOK rely on... \\ Our teams’ preparation to quickly adapt to changes in the contexts where the banners operate to (8/8) better serve the consumers SS our stronger market positions, good business momentum and c
Slide 29: Appendix
Jeronimo Martins APPENDIX 29
Slide 30: Corporate Responsibility Highlights (1/3)
Jeronimo Marti PROMOTING GOOD HEALTH THROUGH FOOD 1 9071 We focus on the quality, diversity and safety of the products we market CORPO R ATE The nutritional reformulations of our Private Brand and perishable products, prevented 1,215.6 tonnes of sugar, 152.8 tonnes of fats, and 20.4 tonnes of salt f
Slide 31: Corporate Responsibility Highlights (2/3)
Jeronimo Marti 1. 2021 af Souncne RESPONSIBLY We integrate social and environmental criteria throughout the supply chain CORPORATE ° We sourced around 89% of our food purchases from local suppliers RESPONSIBILITY ° Our Private Brand and perishable products with sustainability certification account f
Slide 32: Corporate Responsibility Highlights (3/3)
Jeronimo Martins 1. 2021 © BEING A BENCHMARK EMPLOYER CORPORATE i We promote job creation, balanced wage policies, and a stimulating work environment RESPONSIBILITY We increased our workforce by 4.4% (an additional 5,248 employees) HIGHLIGTHS We promoted 17,426 employees (3 / 3) We invested 217 mill
Slide 33: Income Statement excluding IFRS16
(Million Euro) FY 21 FY 20 ∆ Q4 21 Q4 20 ∆ Net Sales and Service 20,889 19,293 8.3% 5,683 5,096 11.5% Gross Profit 4,497 21.5% 4,227 21.9% 6.4% 1,207 21.2% 1,110 21.8% 8.7% Operating Costs -3,322 -15.9% -3,203 -16.6% 3.7% -872 -15.3% -817 -16.0% 6.7% EBITDA 1,175 5.6% 1,024 5.3% 14.7% 335 5.9% 293 5
Slide 34: Cash Flow excluding IFRS16
(Million Euro) FY 21 FY 20 EBITDA 1,175 1,024 Interest Payment -22 -26 Other Financial Items 0 0 Income Tax -174 -174 Funds From Operations 979 824 Capex Payment -604 -510 Change in Working Capital 375 246 Others -26 -44 Cash Flow 723 516 34
Slide 35: Balance Sheet excluding IFRS16
(Million Euro) FY 21 FY 20 Net Goodwill 618 620 Net Fixed Assets 4,159 3,967 Total Working Capital -3,287 -2,861 Others 121 115 Invested Capital 1,611 1,842 Total Borrowings 460 524 Financial Leases 22 11 Accrued Interest 0 -3 Cash and Cash Equivalents -1,527 -1,041 Net Debt -1,046 -509 Non-Controll
Slide 36: EBITDA by banner
(Million Euro) FY 21 Mg FY 20 Mg FY 21 Mg FY 20 Mg Biedronka 1,339 9.2% 1,252 9.3% 1,060 7.3% 979 7.3% Hebe 25 9.0% 19 7.6% 0 0.1% -4 n.a. Pingo Doce 244 6.0% 223 5.8% 180 4.5% 160 4.1% Recheio 43 4.7% 33 3.9% 38 4.2% 28 3.3% Ara 26 2.3% -20 n.a. -9 n.a. -53 n.a. Others & Cons. Adjustments -92 n.a.
Slide 37: Net Financial Costs
(Million Euro) FY 21 FY 20 FY 21 FY 20 Net Interest -16 -20 -16 -20 Interests on Capitalised Operating Leases -130 -127 - - Exchange Differences -3 -28 0 -6 Net Financial Costs -6 -7 -6 -7 Net Financial Costs -154 -180 -22 -32 37
Slide 38: Net sales by banner
(Million Euro) FY 21 FY 20 Excl. FX ∆ Q4 21 Q4 20 Excl. FX ∆ Biedronka 14,542 69.6% 13,465 69.8% 11.0% 8.0% 3,912 68.8% 3,555 69.8% 12.8% 10.0% Hebe 278 1.3% 245 1.3% 16.7% 13.5% 84 1.5% 65 1.3% 32.6% 29.5% Pingo Doce 4,046 19.4% 3,869 20.1% 4.6% 1,090 19.2% 1,025 20.1% 6.4% Recheio 906 4.3% 847 4.4
Slide 39: Sales growth by banner and quarter
Q1 21 Q2 21 H1 21 Q3 21 9M 21 Q4 21 2021 Q1 21 Q2 21 H1 21 Q3 21 9M 21 Q4 21 2021 Biedronka Euro 3.9% 9.8% 6.8% 8.1% 7.3% 10.0% 8.0% 6.5% 8.8% 7.7% 8.1% 7.8% 9.8% 8.3% PLN 9.2% 10.4% 9.8% 11.2% 10.3% 12.8% 11.0% Hebe Euro -10.9% 30.4% 7.3% 8.5% 7.8% 29.5% 13.5% 0.1% 38.2% 17.7% 9.0% 14.4% 25.1% 17.5
Slide 40: Number of Stores and Sales Area
Number of Stores 2020 Q1 21 Q2 21 Q3 21 Q4 21 Closings 2021 2021 Biedronka * 3,115 21 32 22 89 29 3,250 Hebe 266 2 5 11 7 0 291 Pingo Doce 453 2 1 3 8 2 465 Recheio 42 0 0 0 0 0 42 Ara 663 26 15 23 93 1 819 * Excluding 14 Micro fulfilment Centres (MFC) to supply Biek's operation (ultra-fast delivery
Slide 41: Capex by banner
(Million Euro) FY 21 Weight FY 20 Weight Biedronka 438 63% 302 64% Pingo Doce 104 15% 91 19% Recheio 30 4% 10 2% Ara 81 12% 30 6% Others 37 5% 37 8% Total CAPEX 690 100% 470 100% 41
Slide 42: Working Capital
(Million Euro) FY 21 FY 20 FY 21 FY 20 Inventories 1,119 982 1,119 982 in days of sales 20 19 20 19 Customers 41 36 41 36 in days of sales 1 1 1 1 Suppliers -3,587 -3,190 -3,587 -3,190 in days of sales -63 -60 -63 -60 Others -864 -693 -860 -689 Total Working Capital -3,290 -2,864 -3,287 -2,861 in da
Slide 43: Borrowings
(Million Euro) FY 21 FY 20 Long Term Borrowings 347 364 as % of Total Borrowings 75.5% 69.5% Average Maturity (years) 5.7 6.7 Short Term Borrowings 113 160 as % of Total Borrowings 24.5% 30.5% Total Borrowings 460 524 Average Maturity (years) 4.5 5.1 % Total Borrowings in Euros 0.0% 0.0% % Total Bor
Slide 44: Forward-looking statements
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 uncertainties, which have increa
Slide 45: Jeronimo
Jeronimo Martins