Distribuidora Internacional de Alimentacion SA · BME:DIA
Distribuidora Internacional de Alimentacion SA — FY2014 Earnings Presentation
32 slides from Distribuidora Internacional de Alimentacion SA's earnings presentation, Feb 23, 2015
Slide 1: Results 2014
Slide 2: Disclaimer
DISCLAIMER This document does not constitute or form part of any purchase, sales or Exchange offer, nor is it an invitation to draw up apurchase sales or exchange offer, or advice on any stock issued by Distribuidora Internacional deAlimentacidn, S.A. (“DIA” or the “Company”). Nor shall this documen
Slide 3: Index
INDEX / HIGHLIGHTS / FINANCIAL REVIEW / BUSINESS REVIEW [Q&A
Slide 4: Highlights 2014
/ Highlights 2014 » Dia /9.9% sales growth in local currency (41.1% in EUR) /8.9% underlying EPS growth to EURO.415 (11.3% ex-currency) / EURO.18 dividend per share (+12.5% vs. 2013) /EUR200m share buy-back programme Sales related to Gross Sales Under Banner
Slide 5: 2014: a year full of achievements
/ 2014: a year full of achievements CORPORATE OPERATIONS (- \ ~ Successful exit from France Solid financing structure / Investment grade rating Promising acquisitions in Spain / Successful Eurobond issue / El Arbol / Improved funding costs / Eroski stores / Lower net debt N J y, ( Active network man
Slide 6: Iberia: resilience and market share growth in a challenging environment
/ \beria: resilience and market share Dia (4) growth in a challenging environment ( Adjusted EBIT ava #1 Franchise platform ava Share gain in Spain > (2014) (2014) (2014) +22 bps* EUR353.7m +211 ae new franchised stores 6.8% of net sales ~120 bps up to 1,934 = . acquisition gain accumulate up to P12
Slide 7: High-growth discount platform in Latin America
/ High-growth discount platform in Dia (4) Latin America 4 Solid share gain in 2014 > Strong business Store-opening record > performance in 2014 (2014) + Brazil 70 bps bra2 +32.7% sales: 421 3 +140 bps Argentina | |}449.9% adjusted eit to 1,523 L J y J in localcurrency Source: Nielsen & DIA
Slide 8: Taking the right choices for sustainable profit growth
/ Taking the right choices for sustainable profit growth ya XN New supermarket ava High discipline in cost Continued expansion > platform management of franchises (2011-2014 in Spain) (2014) +437 El Arbol -30 bps in energy costs 3 2 4 -20 bps in real estate costs i . up to 3,085 stores +] 60 Eroski
Slide 9: Digital transformation plan
/ Digital transformation plan Already launched: And more to come: > Customer insights for , suppliers 7 <| Optimized stocks v E-commerce: dia.es, “Oportunidades DIA” (DIA bargains), and soon, Clarel.es v_ DIAApp: receive personalized offers and coupons depending on time and location v¥ Customized Ad
Slide 10: Returning profits to shareholders
/ Returning profits to shareholders Dia rc — \ > 2014 dividend proposal Share buy-back programme EUROI8 | |EUR2ZO0Om
Slide 11: Index
INDEX / HIGHLIGHTS / FINANCIAL REVIEW / BUSINESS REVIEW [Q&A nN
Slide 12: Adjusted EBIT up 6.6%
/ Adjusted EBIT up 6.6% (EURM) Gross sales under banner Adjusted EBITDA Adjusted EBITDA margin D&A Adjusted EBIT Adjusted EBIT margin Net financial income/expenses Income taxes Net attributable profit Dia DIA GROUP % 2014 % change ex-currency Underlying net profit 9,399.9 585.3 7.3% (184.6) 400.7 5.
Slide 13: Adjusted EBIT growth in both segments
/ Adjusted EBIT growth in Dia (%) both segments IBERIA EMERGING MARKETS % % % change Gross sales under banner |6,095.5 -0.8% 3,304.5 4.8% 30.6% Adjusted EBITDA 498.9 -1.2% 86.4 12.7% 46.4% Adjusted EBITDA margin 9.6% Obp 31% 22 bos Adjusted EBIT 353.7 0.4% 46.9 16.7% 60.6% Adjusted EBIT margin 6.8%
Slide 14: Adjusted EBITDA margin stable
/ Adjusted EBITDA margin stable 9.6% 9.6% / Stable in Iberia: combination of Spain Iberia ° : (+), Portugal (-) and acquisitions (-) / Significant margin expansion in Latam, Le) 9 Emerging markets | 2.9% 3.1% despite dilutive effect of new regions / Positive effect from several efficiency DIAgroup |
Slide 15: EPS growth: exceeding our double-digit target
/ EPS growth: exceeding our double-digit target UnderlyingEPS | CAGR +20.3% EUR 2012 2013 2014 As reportedin 2013 and 2012 Source: DIA 5
Slide 16: Debt maturity profile
400 500 350 2014 2015 2016 2017 2018 2019 RCF 2011 Bond RCF 2014 16
Slide 17: Returning profits to shareholders
/ Returning profits to shareholders (— 2014 \ » EURO.18 dividend proposal Share buy-back programme EUR2Z00m 1 1 ' ' ' Y inasix-month period ! ! v Maximum 6.2% of capital ! _B 0.18 EUR _B 8% 2011 Dividend 2012 Dividend 2013 Dividend 2014 Dividend Y Proposal to AGM to cancel shares proposal _ . . / Ad
Slide 18: Solid growth track record
/ Solid growth track record CAGR +5.6% (10.9%)* 9,297 9,400 EURm 8,765 7,568 Sales [i 2010 2012 2013 2014 EURm Adjusted EBIT 2010 2011 2012 2013 2014 in localcurrency Sales related to Gross Sales Under Banner Data without France, Turkey & Beijing Source: DIA 18
Slide 19: Ongoing improvement in returns well ahead of industry average
/ Ongoing improvement in returns well ahead of industry average 18.4%" 173% 17.7% as 1 | 1 | 2010 201 2012 2013 2014 ROI = Adj. operating income (EBITDAR)/ Avg. invested capital Avg. invested capital = Avg total assets exc cash +t Avg D&A - Avg account payables - Avg accrued liabilities + x8 Rent ad
Slide 20: Capex 2015
/ Capex 2015 EURm 200 | 150 + 71% 61% 60% Sd 100 + 50 + 29% 39% 40% 45% ie) Iberia Emerging 2012 2013 2014 2015E #2012 ©2013 2014 =™2015E SExpansion On-going and remodelling 2015 Capex: / EUR330m to EUR340m at comparable perimeter and constant currency / Up to EUR146m for Eroski store acquisitions /
Slide 21: 2015 Outlook
/ 2015 Outlook XQ Dia / Double-digit top-line growth thanks to organic expansion and acquisitions / Adjusted EBITDA growth expected with positive contribution from organic growth and acquisitions / CAGR 2012-15 underlying EPS growth target reiterated(*) (*) at constantcurrency a1
Slide 22: Index
INDEX / HIGHLIGHTS / FINANCIAL REVIEW / BUSINESS REVIEW [Q&A 22
Slide 23: DIA, the proximity specialist
/ DIA, the proximity specialist With the disposal of DIA France and the El Arbol and Eroski store acquisitions, DIA has rationalized its geographical footprint and is now focused on its core markets and on being the proximity specialist with the best prices in food, fresh, and HPC... I é 2015 plans
Slide 24: Challenges remain for 2015
/ Challenges remain for 2015 | Dia / Deflationary scenario in Europe , / Constant format _ , update in every region ..but a solid set of action plans oe / Dynamic organic are already in 3 place expansion / Lower economic ,7 <a growth in Brazil -7 / New supermarket and Argentina platform 24
Slide 25: Conclusions
/ Conclusions XQ Dia / 2014, another record year for DIA / Challenging environment remains but improvement expected during the year. / Well-defined plan to continue growing profitably: Consolidation and organic opportunities in Iberia Unique discount model in LatAm Winning franchise proposition cont
Slide 26: Index
INDEX / HIGHLIGHTS / FINANCIAL REVIEW / BUSINESS REVIEW | Q&A 26
Slide 27: Q&A
Slide 28: Back-up
BACK-UP
Slide 29: Growing contribution of DIA banner franchised stores
/ Growing contribution of DIA banner Dia franchised stores 54.4% 48.3% 41.8% 37.8% 32.5% 26.6% 2009 2010 2011 2012 2013 2014 Data without Schlecker/Clarelas reported 29
Slide 30: Underlying net profit calculation
/ Underlying net profit calculation . DIA % (curm) 2013 2014 Net attributable profit 209.3 329.2 57.3% Non-recurring items 38.4 76.8 99.9% Other financials (-1.1) 5.8 -639.4% Discontinued operations 114 (120.6) = -1,189.0% Taxes (11.2) (24.1) 114.6% Underlying net profit 246.4 267.2 8.4% Source: DIA
Slide 31: Net debt performance
/ Net debt performance EURM 651.0 = -585.3 +349.4 -435.6 +187.0 533.4 +1 | Sy 4114.0 +112.4* [ | FY 2013 Adjusted Trade El Arbol Capex France Dividends Other FY 2014 EBITDA Working acquisition Capital (*) EUR50.3m of TWC transfer from ElArbol supplier amount Source: DIA disposal &share buyback 31
Slide 32: Currency evolution
/ Currency evolution 14.0% 0.6% -0.6% -22.4% -32.8% 3619 36.1% 38.1% Q12014 Q2 2014 Q3 2014 Q4 2014 January 2015 BEUR/ARS = ®EUR/BRL ™EUR/CNY Bloomberg average currency rates (a negative change in exchange rates implies a depreciation versus the Euro) 32
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