Slide 1: H1 2017 Results Presentation
H1 2017 Results Presentation 3 May 2017
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 Business Review Financial Review Outlook H1 2017 Results Presentation / 3 May 2017 / Page 3
Slide 4: H1 2017 Results Highlights
H1 2017 Results Highlights Net Income growth close to 50% o Economic Sales growing to €511.9m (+2.7%) • Revenues decreased by 1.0% to €4,527.0m despite a higher tobacco volumes drop (-4.2% cigarettes + RYO). Revenues growth in Iberia and Italy mitigated decline in France. • Increase of tobacco retai
Slide 5: Business Review
Business Review H1 2017 Results Presentation / 3 May 2017 / Page 5
Slide 6: Business Review: Snapshot by segment
Business Review Snapshot by segment o Declining tobacco volumes after RSP increases in Q1 o Very positive track-record in convenience Revenues: €1,264.4m (+1.1%) o Strong performance of Transport Iberia Ec. Sales: €261.8m (+5.9%) o Pharma growth continues Adj. EBIT: €46.8m (+8.7% ) o Non-recurring c
Slide 7: Business Review: Iberia
Business Review Iberia o Change in trend of tobacco volumes in Spain in Q2 leading H1 to: • Cigarettes: -2.0% vs. -0.1%; RYO: -2.8% vs. -1.9% Revenues: €1,077.4m (+1.1%) Tobacco and o RSP increase in Q1: +10 cents vs. no increase in H1 2016 Related Ec. Sales: €125.7m o Very good performance of Portu
Slide 8: Business Review: France
Business Review France o Tobacco volumes positive in Q2 but dropping in H1: • Cigarettes: -3.0% vs. +1.6%; RYO: -1.3% vs. +3.9% o Uneven RSP increases in tobacco in Q2 2017 not compensating for new Revenues: €1,950.2m excise taxes and increase in tobacconists’ commission. No RSP rise in H1 (-3.8%) T
Slide 9: Business Review: Italy
Business Review Italy o Sharp drop in cigarette volumes, probably caused by ban on sales of 10- cigarettes pack: • Cigarettes: -7.8% vs. +1.6%; RYO: +10.9% vs. +4.6% Revenues: €1,238.0m (+1.9%) o No RSP increase despite higher tax incidence in brands above minimum tax Tobacco and after the automatic
Slide 10: Financial Review
Financial Review H1 2017 Results Presentation / 3 May 2017 / Page 10
Slide 11: Financial Review: P&L
Financial Review: P&L Strong growth of recurring activity (€m) H1 2017 H1 2016 Δ% o Revenues: Reduction mainly due to drop in Revenues 4,527.0 4,574.9 (1.0)% tobacco volumes partially offset by RSP increases in Spain and France this year and in Italy in Q3 FY 2106 Eco. Sales 511.9 498.4 +2.7% o Econ
Slide 12: Financial Review: P&L Net Income boosted by capital gain and lower CIT
Financial Review: P&L Net Income boosted by capital gain and lower CIT (€m) H1 2017 H1 2016 Δ% Profit from Operations 69.5 68.7 +1.2% o Higher positive Financial Result: • Positive impact from sale of Italian (+) Financial Income 24.0 6.3 +278.7% affiliate in Q1 (-) Financial Expenses (0.7) (1.7) +5
Slide 13: Financial Review: Negative Working Capital position
Financial Review: Negative Working Capital position Improving again vs. last year EVOLUTION IN H1 2017 EVOLUTION IN H1 2016 o Working Capital shows a better €118.4m €165.8m figure based on business evolution o Average cash position during H1 2017: €1,453m vs. €1,419m in the previous year o Interest
Slide 14: Financial Review: Free Cash Flow
Financial Review: Free Cash Flow (MM€) H1 2017 H1 2016 Change EBITDA 117.1 117.7 (0.6) o Seasonality of the business results Working Capital Variations and Other (117.7) (171.5) +53.8 in a negative cash flow during H1 that is recovered during H2 Corporate Income Tax Paid (45.4) (11.1) (34.3) o Lower
Slide 15: Financial Review: Conclusions
Financial Review: Conclusions Good recurring performance despite drop in distributed volumes and negative impact of excise taxes/prices movements Positive impact from sale of affiliate in Italy translating into strong Profit before taxes growth Reduction of corporate income tax rate in all geo
Slide 16: Outlook
Outlook H1 2017 Results Presentation / 3 May 2017 / Page 16
Slide 17: Outlook 2017
Outlook 2017 Expected growth rate similar to FY2016 in Net Profit and slightly below in Adj EBIT o Tobacco: • Drop in volumes in Spain and Italy to soften • Plain Packaging in France not having a significant impact in volumes • Uncertain scenario in terms of tobacco taxation and resulting pricing de
Slide 18: Appendix
Appendix H1 2017 Results Presentation / 3 May 2017 / Page 18
Slide 19: Tobacco Volumes Evolution
Tobacco Volumes Evolution Positive performance Million units % change H1 2017 H1 2016 H1 2015 H1 2017 vs. H1 2016 vs. H1 2016 H1 2015 TOTAL Cigarettes 76,142 79,963 78,998 (4.8)% +1.2% RYO/MYO 10,066 9,997 9,795 +0.7% +2.1% Cigars 1,874 1,869 1,918 +0.3% (2.5)% SPAIN Cigarettes 21,009 21,449 21,472
Slide 20: Revenues Evolution
Revenues Evolution By segment and activity (€m) H1 2017 H1 2016 Δ% Iberia 1,264.4 1,251.0 +1.1% Tobacco and Related 1,077.4 1,065.5 +1.1% Transport 170.9 165.3 +3.4% Other Businesses 61.6 66.0 (6.6)% Adjustments (45.5) (45.8) +0.7% France 2,039.4 2,123.3 (4.0)% Tobacco and Related 1,950.2 2,026.1 (3
Slide 21: Economic Sales evolution
Economic Sales evolution By segment and activity (€m) H1 2017 H1 2016 Δ% Iberia 261.8 247.3 +5.9% Tobacco and Related 125.7 118.6 +5.9% Transport 119.5 114.5 +4.4% Other Businesses 37.4 35.5 +5.3% Adjustments (20.8) (21.3) +2.4% France 135.9 138.8 (2.1)% Tobacco and Related 114.5 116.2 (1.5)% Other
Slide 22: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) H1 2017 H1 2016 Δ% Iberia 46.8 43.0 +8.7% France 30.8 34.7 (11.4)% Italy 28.5 27.5 +3.3% Corporate & Others (6.0) (6.2) +4.7% Total Adjusted EBIT 100.0 99.0 1.0% H1 2017 Results Presentation / 3 May 2017 / Page 22
Slide 23: Investments
Investments Investing on differentiation (€m) H1 2017 H1 2016 Δ% Maintenance 3.0 1.8 +66.7% Infrastructure 5.5 2.8 +96.4 IT investments (technology) 5.3 4.6 +15.2% Total investments 13.8 9.2 +50.0% H1 2017 Results Presentation / 3 May 2017 / Page 23
Slide 24: Balance Sheet
Balance Sheet (€m) 31 March 2017 30 September 2016 PP&E and other Fixed Assets 207.4 208.7 Net Long Term Financial Assets 6.9 28.6 Net Goodwill 924.0 919.1 Other Intangible Assets 575.3 602.4 Deferred Tax Assets 20.1 22.4 Net Inventory 1,045.6 1,085.8 Net Receivables and Others 1,674.1 1,793.1 Cash
Slide 25: H1 2017 Results Presentation
H1 2017 Results Presentation 3 May 2017