Slide 1: 2015 Results presentation
2015 Results presentation November 2015
Slide 2: Disclaimer
Disclaimer This document has been prepared by Compañía de Distribución Integral Logista Holdings, S. A. (“Logista Holdings” or “the Company”) for information purposes, and does not constitute an offer of purchase, sale or exchange, neither an invitation for an offer of purchase, sale or exchange of
Slide 3: Index
Index: Results Highlights Delivering on our objectives Business Review Financial Review Outlook 2015 Results presentation / November 2015 / Page 3
Slide 4: 2015 Results Highlights
2015 Results Highlights Strong growth in recurring activity o >1% Economic Sales growth, excluding non-recurring in 2014 • Revenues almost stable, decreasing by 0.3% to €9,471m • Economic Sales reached €1,010m, down by 1.8% • Positive impact of litigation provision’s reversal in Q2 2014 affecting co
Slide 5: Delivering on our objectives
Delivering on our objectives 2015 Results presentation / November 2015 / Page 5
Slide 6: Delivering on our objectives: Four building blocks
Delivering on our objectives Four building blocks Strengthening while growing consolidated business base Expanding business base Our objective: Attractive returns to shareholders Improving efficiency Robust cash flow profile 2015 Results presentation / November 2015 / Page 6
Slide 7: Strengthening/growing consolidated business base (actions)
Delivering on our objectives Strengthening/growing consolidated business base (actions) Maintaining leadership in tobacco (contracts renewal depends on expiry calendar): o Spain: Philip Morris Growing services: o Route-to-consumer information to tobacco sector in Spain, France and Italy o Distributi
Slide 8: Expanding business base (actions)
Delivering on our objectives Expanding business base (actions) Boosting sales into existing pipeline (wholesale): o Enlargement of portfolio for tobacconists in Spain, developing our presence at PoS o Strong development of convenience network (stores, cash & carries at service points) in Italy o Par
Slide 9: Improving efficiency (actions)
Delivering on our objectives Improving efficiency (actions) Vertical business model: o Continuous reduction of headcount in tobacco warehouses in Spain o Reorganisation of activity in South Eastern France o Increasing service level in convenience activities in France Synergies: o Reorganisation of t
Slide 10: Robust cash flow profile
Delivering on our objectives Robust cash flow profile High cash conversion: o FCF / EBITDA is maintained at 58% High pay out ratio: o 90% of Net Profit distributed as dividends Bi-annual dividend payments: o 0.56 Euros/share paid 26 February (corresponding to fiscal year 2014) o 0.24 Euros/share pai
Slide 11: Successful year despite tough comparison
Delivering on our objectives Successful year despite tough comparison Tobacco and Transport: Positive Strengthening while growing Economic sales performance consolidated business base excluding one-offs in FY 2014 Convenience products in Italy and Expanding business base Pharma delivering double-dig
Slide 12: Business Review
Business Review 2015 Results presentation / November 2015 / Page 12
Slide 13: Diversification across geographies and activities
Business Review Diversification across geographies and activities Geographical Split Breakdown of activities: Ec. Sales 3 Eco. Sales: €1,010m 1 FY 2014*: 1,029m 3 FY 2014*: €1,029m 1 Other 11% Other Italy Italy 11% 23% 21% Iberia Iberia Transport Transport 49% 50% 21% Tobacco & 20% Tobacco & France
Slide 14: Snapshot by segment
Business Review Snapshot by segment o Macroeconomic environment: strong acceleration of growth o Litigation settlements affecting comparison Revenues: €2,577m (+1.2%) o Slowing down in tobacco volume drop, moderate RSP increase (in line Iberia with 2014) and growth of low-price brands Ec. Sales: €49
Slide 15: Business Review: Iberia
Business Review Iberia o Substantial reduction in tobacco volume rate of decline: • Cigarette: -0.8% vs. -3.8% Revenues: €2,217m • RYO: -0.8% vs. -12.3% (+1.6%) Tobacco and Related o Modest RSP increase in line with 2014: +5 cents per pack Ec. Sales: €246m o Strong growth in sales of non-tobacco rel
Slide 16: Business Review: France
Business Review France o Tobacco volume slightly decreasing: • Cigarette: -0.5% vs. -4.6% • RYO: +4.4% vs. -2.7% Revenues: €4,193m (-0.8%) Tobacco and o No RSP increases vs.+20 cents in 2014 Related Ec. Sales: €238m o Positive evolution of smoking items category, other non-tobacco related products r
Slide 17: Business Review: Italy
Business Review Italy o Moderate tobacco volume drops: • Cigarette: -0.7% vs. -0.4% • RYO: +4.2% vs. +3.4% Revenues: €2,519m (-0.4%) Tobacco and o First RSP increase in 3 years: +20 cents per pack Related Ec. Sales: €230m o Significant market share increase of cigarette low price segment (+9.4%) o G
Slide 18: Financial Review
Financial Review 2015 Results presentation / November 2015 / Page 18
Slide 19: Financial Review: P&L
Financial Review: P&L A growing recurring activity (€m) 2015 2014 (*) Δ% o Revenues: Good performance of Transport Revenues 9,471 9,499 (0.3)% and Tobacco and related in Iberia almost fully offsetting the impact of stable RSP and Eco. Sales 1,010 1,029 (1.8)% higher low price segment over dropping v
Slide 20: Financial Review: P&L
Financial Review: P&L Financial results more than offset higher corporate tax (€m) 2015 2014 (*) Δ% Profit from operations 160 138 +15.5% (+) Financial Income 12 22 (43.2)% (-) Financial Expenses (4) (7) +38.1% o Positive Financial Result: • Litigation settlement in 2014 affecting Profit before taxe
Slide 21: Financial Review: Working Capital
Financial Review: Working Capital Annual evolution of cash position Seasonality driving cash position to its peak towards year end: o Dividend payments: • February (€74.3m) Final 2014 • August (c. €32m) Interim 2015 (€m) Mínimum Average Maximum Cash 295 1,341 2,575 2015 Results presentation / Novemb
Slide 22: Financial Review: Investments
Financial Review: Investments Investing in differentiation (€m) 2015 2014 Δ% Maintenance 4.3 5.8 (25.9)% o Total investment slightly below previous year due to IT projects Infrastructure 13.2 12.0 10.0% calendar o c. 50% dedicated to technology IT investments (technology) 13.2 17.2 (22.7)% o Limited
Slide 23: Financial Review: Economic Free Cash Flow
Financial Review: Economic Free Cash Flow (€m) 2015 2014 Δ EBITDA 261 259 2 Movements in long term Prov. (payment) (6) (57) 51 Working Capital Variations and Others (13) 30 (43) o Impacted by litigations settlement payments in 2014 (c.€54m) Corporate Income Tax Paid (70) (54) (16) o Good performance
Slide 24: Financial Review: Dividend Policy
Financial Review: Dividend Policy o Directors will propose a dividend distribution for year ended September 2015 of €98 million • Interim dividend paid in August 2015 (€0.24 per share, c. €32m) • Final dividend per share: €0.5 (number of shares: 132,750,000) • Payable at the end of second quarter of
Slide 25: Financial Review: Conclusions
Financial Review: Conclusions o Highly resilient business model o Superior profitability with improving margins TSR 2015*:+22.6% o Robust Economic Cash Flow profile o Attractive Dividend Pay-out profile * Source: Bloomberg, from 30 September 2014 to 30 September 2015 (without dividends’ reinvestment
Slide 26: Outlook
Outlook 2015 Results presentation / November 2015 / Page 26
Slide 27: Outlook 2016
Outlook 2016 Expected growth: mid single digit Adj. EBIT and almost double digit Net Profit o Tobacco: • Volumes: slightly higher decline rate • RSP increases in all geographies (no significant tax increases expected) • No relevant impact expected in France as a consequence of a potential Plain Pack
Slide 28: Appendix
Appendix 2015 Results presentation / November 2015 / Page 28
Slide 29: Tobacco Volumes Evolution
Tobacco Volumes Evolution Lower declining trend in all geographies Million units % Y-o-Y Change 1 Oct. 2014 – 30 1 Oct. 2013 – 30 1 Oct. 2012 – 30 1 Oct. 2014 – 30 1 Oct. 2013 – 30 Sept. 2015 Sept. 2014 Sept. 2013 Sept. 2015 Sept. 2014 TOTAL Cigarettes 167,734 168,895 173,349 (0.7)% (2.6)% RYO/MYO 2
Slide 30: Revenues Evolution
Revenues Evolution By segment and activity (€m) 2015 2014 (*) Δ% Iberia 2,577 2,545 +1.2% Tobacco & Related 2,217 2,182 +1.6% Transport Services 330 316 +4.2% Other Businesses 117 128 (9.3)% Adjustments (87) (81) (7.6)% France 4,407 4,455 (1.1)% Tobacco & Related 4,193 4,225 (0.8)% Other Businesses
Slide 31: Economic Sales Evolution
Economic Sales Evolution By segment and activity (€m) 2015 2014 (*) Δ% Iberia 490 516 (5.0)% Tobacco & Related 246 283 (13.5)% Transport Services 220 209 +6.0% Other Businesses 66 63 +5.3% Adjustments (42) (39) (9.0)% France 284 297 (4.3)% Tobacco & Related 238 248 (3.9)% Other Businesses 52 58 (10.
Slide 32: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) 2015 2014 (*) Δ% Iberia 98 109 (10.2)% France 73 78 (6.4)% Italy 63 45 40.8% Corporate & Others (12) (12) 1.7% Total Adjusted EBIT 223 221 1.1% (*) Restated 2015 Results presentation / November 2015 / Page 32
Slide 33: Balance Sheet
Balance Sheet (€m) 2015 2014(*) PP&E and other Fixed Assets 216 224 Net Long Term Financial Assets 9 9 Net Goodwill 919 919 Other Intangible Assets 661 713 Deferred Tax Assets 41 59 Net Inventory 1,061 1,067 Net Receivables 1,768 1,771 Cash & Cash Equivalents 1,803 1,707 Total Assets 6,478 6,469 Gro
Slide 34: 2015 Results presentation
2015 Results presentation November 2015