Jeronimo Martins, Sgps S.a. · EURONEXT:JMT

Jeronimo Martins, Sgps — Jeronimo Martins Pe — FY2023 Earnings Presentation

40 slides from Jeronimo Martins, Sgps's earnings presentation, Mar 7, 2024

1. Slide 1: Full Year Results - Media Presentation

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2. Slide 2: Introductory Note

   FULL YEAR RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2

3. Slide 3: Content

   FULL YEAR RESULTS CONTENT 1. 2023 FY SNAPSHOT 5. 2023 FY EBITDA PERFORMANCE 2. 2023 FY THE CONTEXT 5.1. EBITDA 5.2. EBITDA Margin 3. 2023 FY KEY FIGURES 3.1. Income Statement 6. 2023 FY FINAL REMARKS 3.2. Cash Flow 3.3. Balance Sheet 7. 2024 OUTLOOK 3.4. CAPEX APPENDIX 4. 2023 FY SALES PERFORMANCE F

4. Slide 4: 2023 FY Snapshot (1/3)

   FULL YEAR RESULTS 1. 2023 FY SNAPSHOT (1/3) The year was marked by economic slowdown, with consumers increasingly price sensitive Progressive reduction of food inflation Sales growth remained a strategic priority. All €2.2 bn 7.1% banners kept prices low, while continuing to EBITDA EBITDA Mg improve

5. Slide 5: 2023 FY Snapshot (2/3)

   FULL YEAR RESULTS 1. 2023 FY SNAPSHOT (2/3) ON CORPORATE RESPONSIBILITY, THE GROUP CONTINUED TO MAKE SIGNIFICANT PROGRESS • Our nutritional reformulations of Private • We reduced our carbon footprint by 24%, in absolute Brand and perishable products have prevented terms, vs. 2017 (scopes 1 & 2) 130.

6. Slide 6: 2023 FY Snapshot (3/3)

   FULL YEAR RESULTS 1. 2023 FY SNAPSHOT (3/3) ON CORPORATE RESPONSIBILITY, THE GROUP CONTINUED TO MAKE SIGNIFICANT PROGRESS • We invested 312 million euros in recognition • We maintained our commitment to ensure that, at measures for employees in Portugal, Poland and least 80% of food purchases are so

7. Slide 7: 2023 FY The Context

   FULL YEAR RESULTS 2. 2023 FY THE CONTEXT Food inflation declined throughout the period but remained high most of the year driving consumers to stay cautious and price oriented Poland: Consumers became progressively more price sensitive and promotions-driven. Food retail sector registered volumes dec

8. Slide 8: 2023 FY Key Figures: Income Statement

   FULL YEAR RESULTS 3. 2023 FY KEY FIGURES 3.1. INCOME STATEMENT LOW PRICES DROVE (€ Million) 2023 2022 ∆ Q4 23 Q4 22 ∆ OUTPERFORMANCE Net Sales and Services 30,608 25,385 20.6% 8,157 6,992 16.7% IN ALL MARKETS Gross Profit Operating Costs 6,251 20.4% -4,083 -13.3% 5,332 21.0% -3,479 -13.7% 17.2% 17.4

9. Slide 9: 2023 FY Key Figures: Cash Flow

   FULL YEAR RESULTS 3. 2023 FY KEY FIGURES 3.2. CASH FLOW SOLID FUNDS FROM OPERATIONS COVERED (€ Million) 2023 2022 BIGGER CAPEX PROGRAMME EBITDA 2,168 1,854 Capitalised Operating Leases Payment -337 -294 WORKING CAPITAL INFLOW, Interest Payment -192 -157 THAT IN 2022 BENEFITED Other Financial Items 1

10. Slide 10: 2023 FY Key Figures: Balance Sheet

    FULL YEAR RESULTS 3. 2023 FY KEY FIGURES 3.3. BALANCE SHEET (€ Million) 2023 2022 STRONG Net Goodwill 635 613 BALANCE SHEET Net Fixed Assets 5,533 4,589 Net Rights of Use (RoU) 3,074 2,420 Total Working Capital -4,314 -3,837 THE BOARD WILL Others 235 161 PROPOSE THE Invested Capital 5,163 3,946 Tota

11. Slide 11: 2023 FY Key Figures: CAPEX

    FULL YEAR RESULTS 3. 2023 FY KEY FIGURES 3.4. CAPEX 1.2 BILLION EUROS INVESTED IN THE YEAR REINFORCED 448 New Stores PRESENCE IN OUR 203 Biedronka (174 net) MARKETS 34 Hebe (30 net) 11 Pingo Doce (10 net) AMBITIOUS EXP ANS ION 200 Ara (197 net) RENOVATION 442 Refurbished Stores P ROGRAMME ENHANCING

12. Slide 12: Sales Performance: Group

    FULL YEAR RESULTS 4. 2023 FY SALES PERFORMANCE 4.1. GROUP • Strong sales performance across all businesses • Food inflation, despite reducing throughout the year, was still high on average and a feature of the performance • Group LFL at 12.8% +18.1% +20.6% 12

13. Slide 13: Sales Performance: Biedronka

    FULL YEAR RESULTS 4. 2023 FY SALES PERFORMANCE 4.2. BIEDRONKA • Biedronka led the promotional activity in the market, continuously widening the gap between its basket inflation and the country's food inflation • Remodelings and offer innovation enhanced the shopping experience • Positive volumes acr

14. Slide 14: Sales Performance: Hebe

    FULL YEAR RESULTS 4. 2023 FY SALES PERFORMANCE 4.3. HEBE • Strong growth boosted by solid e-commerce operation that represented c.17% of sales • 32 new stores (28 net additions) in Poland and two flagship stores in Czechia to support the e-commerce operations 14

15. Slide 15: Sales Performance: Pingo Doce

    FULL YEAR RESULTS 4. 2023 FY SALES PERFORMANCE 4.4. PINGO DOCE • Strong pricing and promotions policy • Rollout of the new store concept enhanced differentiation and competitiveness • Solid sales delivery 15

16. Slide 16: Sales Performance: Recheio

    FULL YEAR RESULTS 4. 2023 FY SALES PERFORMANCE 4.5. RECHEIO • Strong sales growth leveraged Recheio’s value proposition which is specifically designed for each of its customers segments • Food service increasing 21%. Counting with 610 (+73) Amanhecer partners 16

17. Slide 17: Sales Performance: Ara

    FULL YEAR RESULTS 4. 2023 FY SALES PERFORMANCE 4.6. ARA • In a market pressured by lower volumes and trading down, price became even more important • Our low price positioning and promotions remaining the main focus to meet Colombian consumers’ needs 17

18. Slide 18: 2023 FY EBITDA Performance: EBITDA

    FULL YEAR RESULTS 5. 2023 FY EBITDA PERFORMANCE 5.1. EBITDA • Reinforced price competitiveness and stronger value propositions boosted sales and drove EBITDA growth 18

19. Slide 19: 2023 FY EBITDA Performance: EBITDA Margin

    FULL YEAR RESULTS 5. 2023 FY EBITDA PERFORMANCE 5.2. EBITDA MARGIN • Biedronka margin reflected price investment and increased cost inflation • EBITDA margin for Hebe was resilient despite the investment to grow in new markets • Margin at Pingo Doce reflected solid sales delivery on the planned grow

20. Slide 20: 2023 FY Final Remarks

    FULL YEAR RESULTS 6. 2023 FY FINAL REMARKS We stood firm in our commitment to offer good prices in the three countries OUR DETERMINATION TO MAINTAIN LOW We executed ambitious expansion programmes in Poland and Colombia PRICES LED TO We accelerated store renovations in Portugal and maintained a fast

21. Slide 21: 2024 Outlook (1/5)

    FULL YEAR RESULTS 7. 2024 OUTLOOK (1/5) Complex geopolitical context driving uncertainty on global economic developments for 2024 As 2024 starts, our main retail banners are already working in deflation. They now face a period in which the combination of rapid decrease in consumer prices and high co

22. Slide 22: 2024 Outlook (2/5): Biedronka, Poland

    FULL YEAR RESULTS IN POLAND… 7. 2024 OUTLOOK (2/5) Minimum wage in the country was increased by 17.8% in January BIEDRONKA … with a new increase of 1.4% Will maintain price leadership and prioritize sales growth, leveraging its following in July commercial strength to create even more relevant price

23. Slide 23: 2024 Outlook (3/5): Portugal

    FULL YEAR RESULTS IN PORTUGAL… 7. 2024 OUTLOOK (3/5) Low food inflation / deflation PINGO DOCE … Will maintain a strong commercial dynamic, standing by consumers Promotions-driven food retail market Will continue the implementation of the new store concept, enhancing the brand's differentiation in m

24. Slide 24: 2024 Outlook (4/5): Colombia

    FULL YEAR RESULTS IN COLOMBIA… 7. 2024 OUTLOOK (4/5) Food inflation expected to ARA … continue to decline although there Will remain focused on protecting price leadership, offering the best value options is a degree of uncertainty related to families to the potential severity of the El Niño climate

25. Slide 25: 2024 Outlook (5/5)

    FULL YEAR RESULTS 7. 2024 OUTLOOK (5/5) CHALLENGING CONTEXT THAT WE WILL ADDRESS FROM A POSITION OF STRENGTH Leading price positions LEADING COMPETITIVE POSITIONS Business models that have been consistently reinforced year after year – offer and store networks Consistent outperformance validating ou

26. Slide 26: Q&A

    FULL YEAR RESULTS Q&A Group CFO Ana Luísa Virgínia 26

27. Slide 27: Appendix: Financial Statements

    FULL YEAR RESULTS APPENDIX FINANCIAL STATEMENTS 27

28. Slide 28: Financial Statements (1/11): Income Statement

    FULL YEAR RESULTS FINANCIAL STATEMENTS (1/11) INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) 2023 2022 ∆ Q4 23 Q4 22 ∆ Net Sales and Services 30,608 25,385 20.6% 8,157 6,992 16.7% Gross Profit 6,251 20.4% 5,332 21.0% 17.2% 1,651 20.2% 1,445 20.7% 14.2% Operating Costs -4,596 -15.0% -3,91

29. Slide 29: Financial Statements (2/11): Cash Flow

    FULL YEAR RESULTS FINANCIAL STATEMENTS (2/11) CASH FLOW (Excl. IFRS16) (€ Million) 2023 2022 EBITDA 1,655 1,419 Interest Payment -16 -18 Other Financial Items 1 0 Income Tax -254 -208 Funds From Operations 1,385 1,193 Capex Payment -1,153 -938 Change in Working Capital 175 534 Others -63 -84 Cash Fl

30. Slide 30: Financial Statements (3/11): Balance Sheet

    FULL YEAR RESULTS FINANCIAL STATEMENTS (3/11) BALANCE SHEET (Excl. IFRS16) (€ Million) 2023 2022 Net Goodwill 635 613 Net Fixed Assets 5,533 4,589 Total Working Capital -4,309 -3,832 Others 203 132 Invested Capital 2,061 1,501 Total Borrowings 765 470 Financial Leases 102 82 Accrued Interest 22 14 C

31. Slide 31: Financial Statements (4/11): EBITDA Breakdown

    FULL YEAR RESULTS FINANCIAL STATEMENTS (4/11) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) 2023 Mg 2022 Mg 2023 Mg 2022 Mg Biedronka 1,838 8.5% 1,540 8.8% 1,489 6.9% 1,246 7.1% Hebe 43 9.1% 32 9.0% 14 3.0% 8 2.2% Pingo Doce 282 5.8% 265 5.9% 213 4.4% 198 4.4% Recheio 73 5.4% 59 5.1% 67 5.0% 53 4

32. Slide 32: Financial Statements (5/11): Financial Results

    FULL YEAR RESULTS FINANCIAL STATEMENTS (5/11) FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) 2023 2022 2023 2022 Net Interest -12 -11 -12 -11 Interests on Capitalised Operating Leases -176 -138 - - Exchange Differences 25 -4 0 1 Others -11 -8 -11 -8 Net Financial Costs -174 -162 -23 -19 32

33. Slide 33: Financial Statements (6/11): Sales Breakdown

    FULL YEAR RESULTS FINANCIAL STATEMENTS (6/11) SALES BREAKDOWN 2023 2022 ∆% Q4 23 Q4 22 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 21,500 70.2% 17,582 69.3% 18.2% 22.3% 5,690 69.8% 4,856 69.5% 9.4% 17.2% Hebe 469 1.5% 358 1.4% 26.6% 30.9% 140 1.7% 106 1.5% 23

34. Slide 34: Financial Statements (7/11): Sales Growth

    FULL YEAR RESULTS FINANCIAL STATEMENTS (7/11) SALES GROWTH Total Sales Growth LFL Growth Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q4 23 2023 Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q4 23 2023 Biedronka Euro 26.0% 23.1% 24.5% 23.8% 24.2% 17.2% 22.3% PLN 28.3% 20.4% 24.0% 17.4% 21.7% 9.4% 18.2% 24.5% 17.0% 20.5% 12.8% 17.

35. Slide 35: Financial Statements (8/11): Store Network

    FULL YEAR RESULTS FINANCIAL STATEMENTS (8/11) STORE NETWORK Number of Stores 2022 Openings Closings 2023 Q1 23 Q2 23 Q3 23 Q4 23 2023 Biedronka * 3,395 17 33 42 111 29 3,569 Hebe 315 2 10 5 17 4 345 Pingo Doce 472 2 4 2 3 1 482 Recheio 43 0 0 0 0 0 43 Ara 1,093 64 46 41 49 3 1,290 Closings/ Openings

36. Slide 36: Financial Statements (9/11): CAPEX

    FULL YEAR RESULTS FINANCIAL STATEMENTS (9/11) CAPEX (€ Million) 2023 Weight 2022 Weight Biedronka 559 46% 485 48% Pingo Doce 249 21% 195 19% Recheio 35 3% 48 5% Ara 258 21% 156 15% Others 109 9% 129 13% Total CAPEX 1,209 100% 1,013 100% 36

37. Slide 37: Financial Statements (10/11): Working Capital

    FULL YEAR RESULTS FINANCIAL STATEMENTS (10/11) WORKING CAPITAL IFRS16 Excl. IFRS16 (€ Million) 2023 2022 2023 2022 Inventories 1,816 1,511 1,816 1,511 in days of sales 22 22 22 22 Customers 55 51 55 51 in days of sales 1 1 1 1 Suppliers -4,752 -4,191 -4,752 -4,191 in days of sales -57 -60 -57 -60 Ot

38. Slide 38: Financial Statements (11/11): Total Borrowings & Financial Leasings

    FULL YEAR RESULTS FINANCIAL STATEMENTS (11/11) TOTAL BORROWINGS & FINANCIAL LEASINGS (€ Million) 2023 2022 Long Term Borrowings / Financial leases 371 309 as % of Total 42.8% 56.0% Average Maturity (years) 3.6 3.7 Short Term Borrowings / Financial leases 496 243 as % of Total 57.2% 44.0% Total Borro

39. Slide 39: Disclaimer

    FULL YEAR RESULTS DISCLAIMER This release's forward-looking statements are based on current expectations of future events. They 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, w

40. Slide 40: Jerónimo Martins

    Jerénimo Martins

Jeronimo Martins Pe — FY2023 Earnings Presentation on 6ix