Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Casino Group — FY2021 Earnings Presentation
49 slides from Casino, Guichard-perrachon Sa's earnings presentation, Feb 25, 2022
Slide 1: 2021 Full-year Results
2021 Full-year Results - 25 February 2022
Slide 2: Introduction
Introduction » In France, the Group's key geographies, such as Paris and south-east France, were particularly hit by the 2020-2021 health crisis (decline in customer traffic and tourist numbers, restricted access to stores) » In this environment, the Group has undergone a deep transformation and is
Slide 3: Key figures
Key figures Net sales and EBITDA At constant exchange rates In €m Change over Change over 2019 2020 2021 1 year 2 years Net sales – Group 34,645 31,912 30,549 -0.8% +6.9% Same-store o/w France Retail 16,322 15,219 14,071 -5.4% -2.6% basis o/w retail banners1 15,494 14,813 14,071 -5.4% -2.6% o/w Vind
Slide 4: France highlights
France highlights Refocus on the most buoyant and structurally profitable formats » The Group is now refocused on the most buoyant formats (premium, convenience, e-commerce), which represent 76% of its sales (+16 pts vs. 2018) › Further increase of +31 bps to 9.1% in the retail banners1 EBITDA margi
Slide 5: Latin America highlights
Latin America highlights Three assets adapted to their markets and ready to accelerate growth Net sales EBITDA Trading profit Change Change Change Change Change Change 2021 over over 2021 over over 2021 over over In €m 1 year1 2 years1 1 year2 2 years2 1 year2 2 years2 Éxito 3,695 +7.5% +11% 333 +20
Slide 6: Latin America highlights
Latin America highlights Faster growth for Assaí and development of GPA in buoyant formats » 2021 highlights include: Assaí gross sales › Assaí's listing on the Novo Mercado and the New York Stock (In R$bn) Exchange in March 2021, following the spin-off from GPA in late 2020 +30% p.a. › Sale of 70 E
Slide 7: Activities in France
Activities in France 7
Slide 8: Buoyant formats
Business review – France 76% of net sales now generated by buoyant formats (+16 pts vs. 2018) % net sales by segment Casino 2018 Casino 2021 Market average1 Cdiscount 9% 13% 6% Buoyant formats Convenience 14% (Franprix, Vival, etc.) 18% 43% 37% Supermarkets +16 pts (Monoprix, 37% 76% Casino Supermar
Slide 9: Retail banners – France: Acceleration on the strategic priorities
1. Retail banners – France Acceleration on the strategic priorities » 730 convenience stores opened since January 2021 in urban (Franprix, Naturalia, Monop'), semi-urban and rural (Spar, Vival, etc.) areas › Franchise development model with low capital intensity › Expansion in all regions with forma
Slide 10: More than 210,000 Casino and Monoprix subscribers
1. Retail banners – France More than 210,000 Casino and Monoprix subscribers » In 2019 Casino Group began to offer subscriptions giving customers a 10% discount1 in Casino (Casino Max Extra) and Monoprix (Monopflix) banners › Casino banners (launched in 2019): pioneer subscription, common for Géant
Slide 11: E-commerce: home delivery up +48%
1. Retail banners – France E-commerce: home delivery up +48% » Strong momentum in home delivery, up +48% (vs. +25% for the market1), with strong leadership in the Ile de France region2 › Including Drive, food e-commerce grew by +15% (+6% for the market1) » The Group is supported by technological par
Slide 12: Digital tools to enhance customer service and operations
1. Retail banners – France Digital tools to enhance customer service and operations » A unique omni-channel experience › Fully digitalized customer journey, including in-store purchases (use of smartphones to access the catalogue and special offers, and to scan and pay for products) › 639 autonomous
Slide 13: New purchasing partnership with Intermarché
1. Retail banners – France New purchasing partnership with Intermarché » In September 2021, Casino Group and Intermarché launched the AUXO purchasing partnership › This long-term (five-year) partnership is designed to provide long-term visibility to large industrial groups › It covers a wide range o
Slide 14: Cdiscount
2. Cdiscount Continuation of the long-term strategy: expansion of the marketplace and digital marketing, acceleration of B2B activities GMV – marketplace (€bn) » Solid performance in 2021 after an exceptional 2020 +22% » Radical change in the model, with a mix focused on more profitable 1.5 1.5 busi
Slide 15: relevanC
3. relevanC Ongoing development of a fast-growing business » Ongoing development and strategic expansion for relevanC › Launch of Infinity Advertising in partnership with Intermarché to provide retail media and promotional targeting services for food brands (cumulative base of 17 million profiles) ›
Slide 16: GreenYellow
4. GreenYellow Strong activity momentum in 2021 » Increase of +31% in photovoltaic capacity installed or under construction and of +16% in energy efficiency projects installed or under construction vs. 31 December 2020 › Photovoltaic capacity installed or under construction up +31% to 740 MW (563 MW
Slide 17: CSR
5. CSR A recognised CSR commitment » CSR commitment recognised by leading non-financial rating agencies › Ranked as the no. 1 retailer and no. 8 global company in Moody's ESG ranking in 2021 » Commitment to a -38% reduction in carbon emissions by 20301 › Reduction in Group carbon emissions by -12% i
Slide 18: Financial results
Financial results 18
Slide 19: Preliminary comments
Preliminary comments » IFRS 5 › Leader Price, which was sold on 30 November 2020, is presented as a discontinued operation in 2020 and 2021 » IFRS IC decision › IFRS IC decision relating to the recognition of liabilities for certain post-employment benefits › Retrospective application of this interp
Slide 20: Q4 2021 net sales – Group
Q4 2021 net sales – Group Consolidated net sales stable in Q4, up +7.7% over two years on a same-store basis Q4 2021 Same-store Reported Organic Same-store Net sales, in €m Net sales change over change change1 change2 2 years2 France Retail 3,648 -2.4% -3.3% -3.0% -2.9% Cdiscount 592 -7.9% -9.8% -9.
Slide 21: Q4 net sales – France Retail
Q4 net sales – France Retail Sequential improvement in net sales Q4 2021 Q3 2021 Q4 vs. Q3 Reported Organic Same-store Same-store Same-store Net sales, in €m Net sales change change1 change2 change2 change Monoprix 1,191 -2.3% -1.8% -2.8% -4.1% +1.3 pt Supermarkets 767 +5.6% -4.0% -3.3% -2.7% -0.6 p
Slide 22: Net sales for the four weeks to 20 February 2022
Net sales for the four weeks to 20 February 2022 Sequential improvement over the last four weeks 4 weeks to 20 Same-store change1 Q3 2021 Q4 2021 February Monoprix -4.1% -2.8% -3.4% Supermarkets -2.7% -3.3% -2.2% Franprix -3.6% -2.0% -1.8% Convenience -1.3% -0.7% +5.9% Hypermarkets -8.5% -4.7% -1.5%
Slide 23: Results – France Retail
Results – France Retail Retail banners EBITDA margin up +83 bps over two years Change Change In €m – France Retail 2019 2020 2021 over 1 year over 2 years Net sales 16,322 15,219 14,071 -5.4%1 -2.6%1 EBITDA Retail banners2 1,282 1,304 1,281 -1.7% -0.0% EBITDA margin (%) 8.3% 8.8% 9.1% +31 bps +83 bp
Slide 24: Results – E-commerce (Cdiscount)
Results – E-commerce (Cdiscount) All indicators up over two years after an exceptional year in 2020 Change Change In €m – E-commerce (Cdiscount) 2019 2020 2021 over 1 over 2 year years GMV 3,899 4,204 4,206 +0.0% +7.9% o/w marketplace 1,245 1,514 1,518 +0.2% +22% o/w direct sales 1,991 1,934 1,840 -
Slide 25: Results – Latin America
Results – Latin America EBITDA up +29% on 2019 at constant exchange rates and excluding tax credits At constant exchange rates Change over Change over In €m 2019 2020 2021 1 year 2 years Consolidated net sales 16,358 14,656 14,448 +6.0% +23% o/w Assaí 6,293 6,095 6,568 +17%1 +51%1 o/w GPA Brazil 5,9
Slide 26: Underlying net profit, Group share
Underlying net profit, Group share Underlying net profit, Group share of €94m, down due to tax credits and property development Underlying net profit, Group share In €m 2020 2021 Trading profit and share of profit of equity-accounted investees 1,471 1,242 o/w tax credits in Brazil 139 28 o/w propert
Slide 27: Asset disposal plan
Asset disposal plan Total asset disposals of €3.2bn 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 ~€20m: 20 “A
Slide 28: Free cash flow – France scope excluding GreenYellow
Free cash flow – France scope excluding GreenYellow Cash flow from continuing operations up +€42m over two years In €m – continuing operations France (incl. Cdiscount), excl. GreenYellow 2019 2020 2021 EBITDA 1,458 1,519 1,401 (-) rent (637) (633) (621) EBITDA after lease payments 821 887 780 Comple
Slide 29: Change in net debt
Change in net debt Net debt of €5.9bn Net debt before IFRS 5 2019 2020 2021 In €m France (4,069) (3,751) (4,736) o/w France Retail excl. GreenYellow (4,001) (3,661) (4,365) o/w E-commerce (Cdiscount) (221) (213) (337) o/w GreenYellow 153 122 (34) Latam Retail (1,587) (882) (1,122) o/w GPA Brazil (54
Slide 30: Net debt – France Retail excluding GreenYellow
Net debt – France Retail excluding GreenYellow Change in net debt – France Retail excluding GreenYellow Change in net debt (before IFRS 5) 342 204 35 278 130 (284) 4,365 3,661 1 2 End-2020 ND Free cash flow Financial Q4 business Non-recurring TSSDI Other (mainly End-2021 ND excluding non- expenses a
Slide 31: Bond debt – France
Bond debt – France Normalisation of maturities Maturities of bond debt in France at 31 December 2021: €5.1bn1 In €m Unsecured Secured 1 425 800 558 460 525 339 314 357 400 243 220 Unsecured Disposal June 2022 Jan. 2023 Jan. 2024 March 2024 Feb. 2025 Aug. 2025 Jan. 2026 Aug. 2026 April 2027 segregate
Slide 32: Liquidity position – France
Liquidity position – France Group liquidity position of €2.6bn at 31 December 2021 » At 31 December 2021, the Group had: €2.6bn in liquidity at 31 December 2021 › €562m1 in cash and cash equivalents › €339m in the unsecured €2,051m segregated account and €145m in the secured segregated account €562m
Slide 33: Financial covenants – France
Financial covenants – France RCF financial covenants at 31 December 3.5x 2.7x EBITDA 2.5x EBITDA headroom: 2.7x headroom: €178m €55m Secured gross debt to Limit EBITDA (after lease Requirement EBITDA (after lease payments) to net payments) 1 finance costs » Ratio of secured gross debt to EBITDA (aft
Slide 34: Outlook – France
Outlook – France Since all formats are profitable, the focus is on organic growth » In 2021, the Group completed its repositioning in structurally buoyant formats with a good profitability level » In 2022, as the health situation gradually gets back to normal, the Group is confident it will enjoy re
Slide 35: Appendices
Appendices 35
Slide 36: 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 37: Underlying diluted earnings per share
Appendices Underlying diluted earnings per share Underlying diluted earnings per share 2020 2021 Weighted average number of ordinary shares before 107,677,458 107,905,160 dilution Underlying net profit, Group share (in €m) 266 94 Dividends payable on perpetual deeply-subordinated (34) (36) bonds (TS
Slide 38: Non-recurring expenses
Appendices Non-recurring expenses Other operating income and expenses 2020 2021 Change In €m Group (799) (656) +143 o/w cash costs (341) (392) -51 o/w non-cash costs (458) (264) +194 Latam (103) (300) -197 o/w GPA/Assaí reorganisation costs (cash) - (105) -105 o/w GPA/Assaí reorganisation costs (non
Slide 39: Underlying net financial expense
Appendices Underlying net financial expense 2020 2021 Interest Total net Interest Total net Net financial expense financial Net financial expense financial In €m expense Lease liabilities expense expense Lease liabilities expense France Retail (253) (153) (406) (311) (150) (461) E-commerce (42) (8)
Slide 40: Reconciliation of reported net profit to underlying net profit
Appendices Reconciliation of reported net profit to underlying net profit (continuing operations) 2020 restated 2021 In €m 2020 Adjustments underlying 2021 Adjustments underlying Trading profit 1,422 0 1,422 1,193 0 1,193 o/w tax credits in Brazil 139 0 139 28 0 28 o/w property development in 63 0 6
Slide 41: Underlying non-controlling interests
Appendices Underlying non-controlling interests In €m 2020 2021 France Retail 11 (0) Latam Retail 256 281 o/w Grupo Éxito 73 94 o/w GPA and Assaí 183 187 E-commerce (Cdiscount) (1) (8) Total 266 273 Full-year Results – Friday, 25 February 2022 41
Slide 42: Consolidated net profit (loss)
Appendices Consolidated net profit (loss) In €m 2020 2021 Net profit (loss) before taxes (125) (276) Income taxes (80) 84 Equity-accounted investees 50 49 Net profit (loss) from continuing operations (156) (142) o/w Group share (374) (275) o/w attributable to non-controlling interests 218 133 Net pr
Slide 43: Share of profit of equity-accounted investees
Appendices Share of profit of equity-accounted investees In €m 2020 2021 France Retail 25 33 o/w Mercialys 29 23 o/w Franprix (1) 0 o/w Other (3) 9 Latam Retail 25 16 Total 50 49 Full-year Results – Friday, 25 February 2022 43
Slide 44: Breakdown of consolidated net debt after IFRS at 31 December 2021
Appendices Breakdown of consolidated net debt after IFRS 5 at 31 December 2021 Cash and cash IFRS 5 Net debt In €m Gross debt equivalents impact after IFRS 5 France Retail (4,940) 541 662 (3,737) E-commerce (Cdiscount) (358) 21 4 (333) Sub-total France (5,298) 562 666 (4,070) Latam Retail (2,843) 1,
Slide 45: Net debt
Appendices Net debt 2021 Net debt In €m Net debt before IFRS 5 IFRS 5 Net debt after IFRS 5 France (4,736) 666 (4,070) o/w France Retail excl. (4,365) 662 (3,703) GreenYellow o/w E-commerce (Cdiscount) (337) 4 (333) o/w GreenYellow (34) 0 (34) Latam Retail (1,122) 132 (991) o/w GPA Brazil (475) 102
Slide 46: Consolidated income statement
Appendices Consolidated income statement In €m 2020 2021 CONTINUING OPERATIONS Net sales 31,912 30,549 Other revenue 598 504 Total revenue 32,510 31,053 Cost of goods sold (24,314) (23,436) Gross margin 8,195 7,617 Selling expenses (5,508) (5,122) As a % of net sales 17.3% 16.8% General and administ
Slide 47: Consolidated statement of financial position
Appendices Consolidated statement of financial position In €m 2020 2021 Goodwill 6,656 6,667 Property, plant and equipment, intangible assets and investment property 6,767 7,077 Right-of-use assets 4,888 4,748 Investments in equity-accounted investees 191 201 Deferred tax assets 1,019 1,191 Other no
Slide 48: 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 31/12/2020 31/12/2021 period Majority-held Franprix 34 45 Various dates franchised stores Monoprix 3 3 Various dates Casino Participations France 26 26 Various dates Cnova NCI puts 1 1 2022 Gre
Slide 49: 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,