Slide 1: 2016 Results presentation
2016 Results presentation November 2016
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 2016 Results presentation / November 2016 / Page 3
Slide 4: 2016 Results Highlights
2016 Results Highlights Net Income growth above 20% o c. +3% Economic Sales growth • Revenues increasing by 1.7% to €9,632m • Economic Sales reached €1,038m, up by 2.8% o +5.3% adjusted EBIT growth to €235m • Positive impact of litigation provision’s reversal in Q2 2015 affecting comparison • Furthe
Slide 5: Delivering on our objectives
Delivering on our objectives 2016 Results presentation / November 2016 / 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 2016 Results presentation / November 2016 / 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: British American Tobacco and Japan Tobacco International Growing services: o Expansion of revenues from route-to-consumer
Slide 8: Expanding business base (actions)
Delivering on our objectives Expanding business base (actions) Boosting sales into existing pipeline (wholesale): o Partnership agreements with manufacturers increasing: new contracts in the 3 countries o Multichannel deployment: websites, PoS terminals showing solid expansion (+1,500) in Spain and
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 Restructuring of service points in Italy: 5 transformed into transit points o Ending the centralisation of orders in Italy Synergies: o Reorganisa
Slide 10: Robust cash flow profile
Delivering on our objectives Robust cash flow profile High cash conversion: o FCF / EBITDA increased to 125% High pay out ratio: o 90% of Net Profit distributed as dividends Bi-annual dividend payments: o 0.50 Euros/share paid in February (corresponding to final dividend fiscal year 2015) o 0.25 Eur
Slide 11: Successful year: fulfilling expectations
Delivering on our objectives Successful year: fulfilling expectations Strengthening while growing Tobacco and Transport: Positive consolidated business base Economic sales performance Economic Sales from convenience Expanding business base and Pharma growing at double digit Dividend Yield in FY2016:
Slide 12: Business Review
Business Review 2016 Results presentation / November 2016 / 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: €1,038m 1 FY 2015: 1,010m 3 FY 2015: €1,010m 1 Italy 24% Iberia France 49% 27% Adj. EBIT: €235m 2 o Tobacco & Related in all 3 regions FY 2015: €223m 2 • Italy, less
Slide 14: Snapshot by segment
Business Review Snapshot by segment o Macroeconomic environment: significant growth o Positive litigation results last year, affecting comparison Revenues: €2,640m (+2.5%) o Stable tobacco volume and no change in RSP vs. increase in FY2015 Iberia Ec. Sales: €507m (+3.5%) o Convenience products sales
Slide 15: Business Review: Iberia
Business Review Iberia o Good performance of tobacco volumes: • Cigarette: 0.0% vs. -0.8% • RYO: -1.6% vs. -0.8% Revenues: €2,271m (+2.4%) Tobacco and o Stable RSP vs. rise last fiscal year: +5 cents per pack Related Ec. Sales: €248m o Value added services increased (+1.3%) o Very positive activity
Slide 16: Business Review: France
Business Review France o Growing tobacco volumes: • Cigarette: +1.1% vs. -0.5% Revenues: €4,208m • RYO: +3.0% vs. +4.4% (+0.4%) Tobacco and Related o No RSP increases in FY2016 and FY2015 Ec. Sales: €236m o Ec. Sales of convenience rising despite irregular consumption trend (-0.9%) o Declining prepa
Slide 17: Business Review: Italy
Business Review Italy o Stable tobacco volumes: • Cigarette: -0.1% vs. -0.7% • RYO: +4.4% vs. +4.2% Revenues: €2,611m o RSP increase similar to last year’s: +20 cents per pack followed by a price (+3.7%) Tobacco and reduction of some RYO brands Related Ec. Sales: €245m o Cigarette low price segment
Slide 18: Financial Review
Financial Review 2016 Results presentation / November 2016 / Page 18
Slide 19: Financial Review: P&L Growing business, controlling costs
Financial Review: P&L Growing business, controlling costs (€m) 2016 2015 Δ% o Revenues: Good performance of Tobacco Revenues 9,632.0 9,471.0 +1.7% and related in all geographies and Pharma in Iberia more than offsett the decline of Other Eco. Sales 1,038.1 1,010.1 +2.8% businesses in France (-) Dist
Slide 20: Financial Review: P&L Net Income growth above 20%
Financial Review: P&L Net Income growth above 20% (€m) 2016 2015 Δ% Profit from operations 177.1 159.9 +10.8% o Positive Financial Result: (+) Financial Income 13.7 12.4 +10.8% • Improvement of results from an affiliate company dedicated to electronic banking (-) Financial Expenses (3.1) (4.3) +28.0
Slide 21: Financial Review: Working Capital
Financial Review: Working Capital Annual evolution of cash position o Seasonality driving cash position to its peak towards year end o Dividend payments: • February (€66.4m) Final 2015 • August (c. €33.1m) Interim 2016 (€m) Mínimum Average Maximum Cash 699 1,582 2,603 2016 Results presentation / Nov
Slide 22: Financial Review: Investments
Financial Review: Investments Investing in differentiation (€m) 2016 2015 Δ% Maintenance 3.1 4.3 (27.9)% o > 40% dedicated to technology Infrastructure 11.7 13.2 (11.4)% o Limited investment in warehouses: IT investments (technology) 10.1 13.2 (23.5)% asset light business model Total investments 24.
Slide 23: Financial Review: Economic Free Cash Flow
Financial Review: Economic Free Cash Flow (€m) 2016 2015 Δ EBITDA 273 261 12 Working Capital Variations and Others 119 (19) 138 o Substantial improvement due to: Corporate Income Tax Paid (40) (70) 30 • Increase in results • More favourable working Financial Income and Expenses Flows 11 8 3 capital
Slide 24: Financial Review: Dividend Policy
Financial Review: Dividend Policy o Directors will propose a dividend distribution for year ended September 2016 of €119.3 million • Interim dividend paid in August 2016 (€0.25 per share, c. €33.1m) • Final dividend per share: €0.65 (number of shares: 132,750,000, treasury stock: 275,614) • Payable
Slide 25: Financial Review: Conclusions
Financial Review: Conclusions o Highly resilient business model o Superior profitability with improving margins TSR 2016*:+22.2% o Robust Economic Cash Flow profile o Attractive Dividend Pay-out profile * Source: Bloomberg, from 30 September 2015 to 30 September 2016 (without dividends’ reinvestment
Slide 26: Outlook
Outlook 2016 Results presentation / November 2016 / Page 26
Slide 27: Outlook 2017
Outlook 2017 Similar growth rates for Adjusted EBIT and Net Income o Current trading environment suggests a similar Adjusted EBIT growth rate in FY2017 o Slightly higher restructuring costs, depending on activity evolution o Positive impact in Financial Results from divestment of Italian subsidiary
Slide 28: Appendix
Appendix 2016 Results presentation / November 2016 / Page 28
Slide 29: Tobacco Volumes Evolution
Tobacco Volumes Evolution Stronger volume trend in all geographies Million units % Y-o-Y Change 1 Oct. 2015 – 30 1 Oct. 2014 – 30 1 Oct. 2013 – 30 1 Oct. 2015 – 30 1 Oct. 2014 – 30 Sept. 2016 Sept. 2015 Sept. 2014 Sept. 2016 Sept. 2015 TOTAL Cigarettes 168,300 167,734 168,895 +0.3% (0.7)% RYO/MYO 20
Slide 30: Revenues Evolution
Revenues Evolution By segment and activity (€m) 2016 2015 Δ% Iberia 2,639.9 2,576.7 +2.5% Tobacco & Related 2,270.9 2,218.1 +2.4% Transport Services 329.9 329.5 +0.1% Other Businesses 129.9 116.5 +11.5% Adjustments (90.8) (87.4) (3.9)% France 4,410.8 4,406.9 +0.1% Tobacco & Related 4,207.9 4,193.0 +
Slide 31: Economic Sales Evolution
Economic Sales Evolution By segment and activity (€m) 2016 2015 Δ% Iberia 506.7 489.5 +3.5% Tobacco & Related 248.4 245.1 +1.3% Transport Services 227.3 220.2 +3.2% Other Businesses 73.6 66.4 +10.9% Adjustments (42.6) (42.2) (0.9)% France 281.8 284.2 (0.8)% Tobacco & Related 236.3 238.6 (0.9)% Other
Slide 32: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) 2016 2016 Δ% Iberia 95.1 98.1 (3.0)% France 76.2 73.3 +3.9% Italy 75.7 63.1 +19.8% Corporate & Others (12.2) (11.6) (4.6)% Total Adjusted EBIT 234.8 222.9 +5.3% 2016 Results presentation / November 2016 / Page 32
Slide 33: Balance Sheet
Balance Sheet (€m) 2016 2015 PP&E and other Fixed Assets 208.7 216.0 Net Long Term Financial Assets 10.0 9.5 Net Goodwill 919.1 919.1 Other Intangible Assets 602.4 660.7 Deferred Tax Assets 22.4 40.9 Net Inventory 1,085.8 1,060.5 Net Receivables 1,793.1 1,773.0 Cash & Cash Equivalents 2,062.7 1,798.
Slide 34: 2016 Results presentation
2016 Results presentation November 2016