Jeronimo Martins, SGPS S.A. · EURONEXT:JMT
Jeronimo Martins, SGPS — Jerónimo Martins — Conference Presentation (May 2007)
28 slides from Jeronimo Martins, SGPS's conference presentation, May 7, 2007
Slide 1: Focus on growth and returns
Focus on growth and returns
Slide 2: Forward-looking statements
This presentation includes forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of factors. Jerónimo Martins assumes no obligation to update the information contained in this present
Slide 3: Group Structure
Group Structure (as at Mar. 07) Jerónimo Martins, SGPS Food Distribution Manufacturing Services Portugal Portugal 51% 100% 100% 45% Retail Wholesale Retail 100% JMD (Agency and Marketing Portugal Portugal Poland Services) Unilever Pingo Doce Jerónimo Martins 100% JM Supermarkets Recheio Biedronka Re
Slide 4: Q1 2007 Results
Q1 2007 Results Net Sales increased 17.8% (+18.5% ex-currency) Net Sales (Euro Million) Consolidated Sales +17.8% breakdown Q107 1.136 964 Manufact.& Serv. Biedronka 7% 43% +13.3% +29.3% 494 414 382 366 Retail Port. +5.8% 36% 131 139 +11.9% +1.5% Madeira C&C 74 75 2% 23 26 12% Retail Manuf. & C&C Ma
Slide 5: Q107 Results: Profit & Loss Account
Q107 Results Profit & Loss Account Q1 07 Q1 06 Δ% Eur Mio. % Eur Mio. % Net Sales & Services 1,136 964 17.8% Gross Margin 260 22.9% 231 23.9% 12.5% Operating Costs -195 -17.1% -168 -17.4% 15.8% Provisions -1 -0.1% -1 -0.1% 45.2% EBITDA 64 5.6% 62 6.4% 3.2% EBIT 35 3.1% 36 3.7% -3.9% Net Financial Re
Slide 6: Q107 Results: Balance Sheet
Q107 Results Balance Sheet Eur Mio. Q1 07 Q1 06 Net Goodwill 422 395 Net Fixed Assets 1,424 1,163 Net Working Capital -606 -509 Others 174 191 Invested Capital 1,414 1,240 Net Debt 695 608 Minority Interests 267 245 Share Capital 629 629 Reserves and Retained Earnings -177 -243 Shareholders Funds 71
Slide 7: Pingo Doce: Outstanding sales performance
Q1 2007 Results Pingo Doce Outstanding sales performance • Solid LFL sales evolution (+10.7% growth in the year) • 6 new stores (+3.7% new space in the quarter) • 16 stores revamped • Sales of private brand grew by 36.4% to 37.3% of sales LFL sales growth: 13.5% 13.0% quarterly evolution 11.1% 10.7%
Slide 8: Feira Nova: Expansion of the compact format
Q1 2007 Results Feira Nova Expansion of the compact format • Healthy LFL sales growth in compacts: +3.2% in Q1 07 • 2 new compact stores • Weight of compact stores: 51% of Company sales LFL sales growth: quarterly evolution Hypers 4.2% 3.2% 2.4% 2.2% 1Q06 2Q06 3Q06 4Q06 1Q07 -0.8% -1.1% -2.5% -2.7%
Slide 9: Recheio: Focus on HoReCa
Q1 2007 Results Recheio Focus on HoReCa continues to show positive results • LFL sales grew 4.6% benefiting from double digit LFL growth at HoReCa • Focus on perishables: +24% sales growth • Strong growth in private brand: +10.3% sales increase • Market share gains in both segments: HoReCa and Tradi
Slide 10: Biedronka: Solid contribution to Group
Q1 2007 Results Biedronka Solid contribution to Group’s sales and earnings • LFL growth outperforming the Polish food retail sector: +18.9% • 33 new stores and 4 closures (+3.9% net new space) 18.9% 15.9% 13.4% 11.4% LFL sales growth: quarterly evolution 6.4% 1Q06 2Q06 3Q06 4Q06 1Q07 10
Slide 11: Group Outlook 07
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Slide 12: Outlook 2007: Key Issues
Outlook 2007 Key Issues Jerónimo Martins’ Group Towards a new stage of earnings growth • Fine tune of different formats in Portugal (still some price investment in H1 07) • Reap full benefit of strong moment in Poland • Group sales growing at double digit (revenues growing at a higher pace than earn
Slide 13: Outlook 2007: JMR Business Model
Outlook 2007 JMR Business Model Pingo Doce & Feira Nova Enhancing Differentiation Price Competitiveness + + Cost Control Private Brand Perishables Positive LFL sales + Organic growth Improve Capital Invested efficiency (Capital Turnover) Bigger focus on margins following stronger sales volumes 13
Slide 14: Pingo Doce & Feira Nova: Taking the opportunity to grow
Outlook 2007 Key Issues Pingo Doce & Feira Nova Taking the opportunity to grow Pingo Doce 9 C.25 new stores (large majority to be opened in the H1 07) 9 At least 25 stores revamped (c.20 H1 07) 9 Expected sound LFL growth (c.5%) 9 Focus on sales growth and market share gains Feira Nova 9 7-8 new sto
Slide 15: Recheio: Increasing HoReCa weight
Outlook 2007 Key Issues Recheio Segmentation - Increasing HoReCa weight • Market share gains in both segments – Traditional and HoReCa • Developing Food Service • Working on market consolidation FY target more weight on HoReCa than on Traditional Segment sales 15
Slide 16: Biedronka: Reinforcing Leadership
Outlook 2007 Key Issues Biedronka Reinforcing Leadership • Minimum of 120 new stores • Expected double digit LFL sales growth • Fine tuning business model EBITDA mg to increase slightly 9 Developing more Non Food and Perishables 9 Increasing Exclusive Brands on total sales • Value creation through o
Slide 17: Manufacturing: Solid Leadership
Outlook 2007 Key Issues Manufacturing Solid Leadership • Strong promotional support of key brands • Margins and Returns maintained • Solid contribution to Group earnings 17
Slide 18: Group Outlook 08-09
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Slide 19: Outlook 08-09: Key Principles
Outlook 08-09 Key Principles • Remain focused on sales growth and client needs • Consolidating market positions to deliver better returns • Look for consolidation in those businesses where opportunities arise • New geographic areas are under analysis for our best formats • Maximum focus on increasin
Slide 20: Outlook 08-09: Group Guidance
Outlook 08-09 Group Guidance • Target of Euro 6 billion sales by 2009 maintained • Double digit sales growth (ex-currency) in the period • Solid evolution of earnings following sales • Capex program of c.Euro 700 million over 2008-2009 • Dividend pay-out ratio in the 40-50% range 20
Slide 21: Appendix
Appendix
Slide 22: Group Structure
Group Structure n io at p Sales (Million euro) EBITDA hi Nr. Sales/ LFL id Sales Area rs ol Margin Stores sqm * Δ% ne (sqm ) ns Ow Co 06 05 Δ% 06 05 06 06 06 06/05 F Supermarkets (Leader) 51% I 967.6 853.4 13.4% 189 161,279 6.4 11.2% O O 8.2% 9.7% D Portugal Hypermarkets (3rd Player) 51% I 739.7 685
Slide 23: 2006 in Figures
2006 in Figures (Euro million) JM Sales = 4,407 JM EBITDA = 319 JM Inv. Capital = 1,274 Biedronka 178 Biedronka 90 Biedronka 1,715 Pingo Doce 968 Retail Portugal 141 Retail Portugal 819 Feira Nova 740 Recheio 36 Recheio 602 Recheio 115 Manufacturing 45 Manufacturing 253 Manuf. & Others 161 Others Ot
Slide 24: 2006 Results: Profit & Loss Account
2006 Results Profit & Loss Account 2006 2005 Δ% Eur Mio. % Eur Mio. % Net Sales & Services 4,407 3,828 15.1% Gross Margin 1,043 23.7% 943 24.6% 10.6% Operating Costs -722 -16.4% -633 -16.5% 14.0% Provisions -3 -0.1% -1 0.0% 116.6% EBITDA 319 7.2% 308 8.1% 3.4% EBIT 212 4.8% 209 5.4% 1.5% Net Financi
Slide 25: 2006 FY Results: Consolidated Sales
2006 FY Results Consolidated Sales 2006 2005 Δ% Eur Mio. % total Eur Mio. % total Pln Euro Retail Mainland 1,864 42.3% 1,670 43.6% n.a. 11.6% Cash & Carry Mainland 602 13.7% 578 15.1% n.a. 4.1% Madeira 111 2.5% 105 2.7% n.a. 5.7% Poland - Biedronka 1,715 38.9% 1,348 35.2% 23.4% 27.3% Manufacturing 2
Slide 26: 2006 Results: Balance Sheet
2006 Results Balance Sheet Eur Mio. 2006 2005 Net Goodwill 399 398 Net Fixed Assets 1,364 1,128 Net Working Capital -667 -547 Others 177 189 Invested Capital 1,273 1,168 Net Debt 506 497 Minority Interests 275 251 Share Capital 629 629 Retained Earnings -137 -209 Shareholders Funds 767 671 Gearing 6
Slide 27: 2006 FY Results: Capex
2006 FY Results Capex Remodellling Million Euro Expansion Total & Others Distribution in Portugal 141.8 66.2 208.0 Distribution in Poland 102.6 29.9 132.5 Manufacturing & Others 2.3 3.3 5.6 Total Capex 246.7 99.4 346.1 27
Slide 28: www.jeronimomartins.com
www.jeronimomartins.com
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