Slide 1: 2017 Results presentation
2017 Results presentation 7 November 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 Delivering on our objectives Business Review Financial Review Outlook 2017 Results presentation / 7 November 2017 / Page 3
Slide 4: 2017 Results Highlights
2017 Results Highlights Net Income growing 16.5% o Positive performance of activity but strong negative impact of non-recurring (tobacco excise taxes/price movements in France and Italy) slowing down growth • Revenues decreasing by 1.4% to €9,493m • Economic Sales reached €1,050m, up by 1.1% o 6.8%
Slide 5: Delivering on our objectives
Delivering on our objectives 2017 Results presentation / 7 November 2017 / 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 2017 Results presentation / 7 November 2017 / 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 British American Tobacco (France) and Japan Tobacco International (France and Italy) Growing services: o Further increasing reve
Slide 8: Expanding business base (actions)
Delivering on our objectives Expanding business base (actions) Boosting sales into existing pipeline (wholesale): o Multichannel deployment: • Only Company offering simultaneously 5 channels: vendors, cash & carry/stores, call centres, webs and point of sale terminals • Strong emphasis on internet c
Slide 9: Improving efficiency (actions)
Delivering on our objectives Improving efficiency (actions) Vertical business model: o Externalisation of local service points in Spain o Warehouse capacity expansion of convenience in Spain o Consolidation of 3 warehouses into 1 in France for Other Businesses Synergies: o Reorganisation of transpor
Slide 10: Robust cash flow profile
Delivering on our objectives Robust cash flow profile High average cash conversion: o Lower than previous fiscal year, calendar effect distorted figure at closing High pay out ratio: o Slightly more than 90% of Net Profit distributed as dividends Bi-annual dividend payments: o 0.65 Euros/share paid
Slide 11: Successful year: fulfilling expectations
Delivering on our objectives Successful year: fulfilling expectations Positive underlying Economic sales Strengthening while growing performance helped mitigating high consolidated business base effect of one-offs’ y-o-y variation Wholesale Ec. Sales in Spain and Expanding business base Italy double
Slide 12: Business Review
Business Review 2017 Results presentation / 7 November 2017 / 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: €1,050m 1 FY 2016: €1,038m 1 FY 2016: 1,038m 3 Other Italy 12% Other Italy 11% 23% 24% Iberia Iberia Transport Transport France 51% France 49% 21% Tobacco & 21% Tobac
Slide 14: Snapshot by segment
Business Review Snapshot by segment o Macroeconomic environment: significant growth continues o Declining tobacco volume and RSP increase vs. stability in FY2016 Revenues: €2,695m (+2.1%) o Convenience products sales significantly growing Iberia Ec. Sales: €533m (+5.3%) o Transport continued benefit
Slide 15: Business Review: Iberia
Business Review Iberia o Declining tobacco volumes after RSP increase: • Cigarette: -2.6% vs. 0.0% • RYO: -2.8% vs. -1.6% Revenues: €2,323m (+2.3%) Tobacco and o RSP : +10 cents per pack and no changes last fiscal year Related Ec. Sales: €266m o Value added services increased (+7.0%) o Very good per
Slide 16: Business Review: France
Business Review France o Declining tobacco volumes but no-high impact since PP introduction: • Cigarette: -2.7% vs. +1.1% • RYO: -5.4% vs. +3.0% o Uneven RSP movements in tobacco depending on products’ category but Revenues: €4,050m not compensating for taxes and tobacconists commission increases. N
Slide 17: Business Review: Italy
Business Review Italy o Plunging cigarette volumes, probably caused by ban on sales of 10- cigarettes pack: • Cigarettes: -6.1% vs. -0.1% • RYO: +12.6% vs. +4.4% o Some brands reduced RSP in Q1 by 20-30 cents/pack Revenues: €2,599m o No (or very few) RSP increases despite higher tax incidence in bra
Slide 18: Financial Review
Financial Review 2017 Results presentation / 7 November 2017 / Page 18
Slide 19: Financial Review: P&L
Financial Review: P&L Positive underlying performance concealed by one-off events (€m) 2017 2016 Δ% o Revenues: Drop in tobacco volumes partially Revenues 9,493.2 9,632.0 (1.4)% offset by RSP increases in Spain this year and in Italy in Q3 FY 2016 Eco. Sales 1,049.7 1,038.1 +1.1% o Economic Sales: G
Slide 20: Financial Review: P&L - Net Income growth
Financial Review: P&L Net Income growth propelled by one-off results (€m) 2017 2016 Δ% Profit from operations 158.0 177.1 (10.8)% o Higher positive Financial Result: • Positive one-off impact from sale of Italian (+) Financial Income 31.4 14.5 +116.1% affiliate in Q1 (-) Financial Expenses (1.4) (3.
Slide 21: Financial Review: Treasury
Financial Review: Treasury Annual evolution of cash position 2.800 2.600 2.400 2.200 2.000 o Seasonality driving cash position to its 1.800 peak towards year end 1.600 1.400 o Dividend payments during FY2017: 1.200 1.000 • March 2017 (€86.1m) Final 2016 800 • August 2017(c. €39.7m) Interim 2017 600
Slide 22: Financial Review: Investments
Financial Review: Investments Investing in differentiation and high-quality services (€m) 2017 2016 Δ% Maintenance 5.6 3.1 79.7% o > 40% dedicated to technology Infrastructure 11.6 11.7 (0.8)% o Limited investment in warehouses: asset light business model IT investments (technology) 11.5 10.1 14.4%
Slide 23: Financial Review: Economic Free Cash Flow
Financial Review: Economic Free Cash Flow (€m) 2017 2016 Δ EBITDA 253 273 (20) o Seasonality of the business results in a negative cash flow during H1 that is Working Capital Variations and Others (71) 119 (190) recovered during H2 Corporate Income Tax Paid (109) (40) (69) o Lower negative working c
Slide 24: Financial Review: Dividend Policy
Financial Review: Dividend Policy o Directors will propose a dividend distribution for year ended September 2017 of c. €139 million • Interim dividend paid in August 2017 (€0.30 per share, c. €39.7m) • Final dividend per share: €0.75 (number of shares: 132,750,000, treasury stock: 391,432) • Payable
Slide 25: Financial Review: Conclusions
Financial Review: Conclusions o Highly resilient business model o Superior profitability with improving margins TSR 2017*:+7.2% o Robust Economic Cash Flow profile Absorbing a 10% stake placement in early o Attractive Dividend Pay-out profile September * Source: Bloomberg, from 30 September 2016 to
Slide 26: Outlook
Outlook 2017 Results presentation / 7 November 2017 / Page 26
Slide 27: Outlook 2018
Outlook 2018 Adj. EBIT expected to grow double-digit o Current trading environment suggests around double-digit Adjusted EBIT growth rate in FY2018 Underlying activity is expected to continue performing slightly positively Non-recurring effects, not managed by Logista, will benefit from a negati
Slide 28: Appendix
Appendix 2017 Results presentation / 7 November 2017 / Page 28
Slide 29: Tobacco Volumes Evolution
Tobacco Volumes Evolution Stronger volume trend in all geographies Million units % Y-o-Y Change 1 Oct. 2016 – 30 1 Oct. 2015 – 30 1 Oct. 2014 – 30 1 Oct. 2016 – 30 1 Oct. 2015 – 30 Sept. 2017 Sept. 2016 Sept. 2015 Sept. 2017 Sept. 2016 TOTAL Cigarettes 161,646 168,300 167,734 (4.0)% +0.3% RYO/MYO 20
Slide 30: Revenues Evolution
Revenues Evolution By segment and activity (€m) 2017 2016 Δ% Iberia 2,695.3 2,639.9 +2.1% Tobacco & Related 2,322.6 2,270.9 +2.3% Transport Services 341.1 329.9 +3.4% Other Businesses 125.8 129.9 (3.1)% Adjustments (94.2) (90.8) (3.6)% France 4,234.1 4,410.8 (4.0)% Tobacco & Related 4,049.9 4,207.9
Slide 31: Economic Sales Evolution
Economic Sales Evolution By segment and activity (€m) 2017 2016 Δ% Iberia 533.4 506.7 +5.3% Tobacco & Related 265.6 248.4 +7.0% Transport Services 236.1 227.3 +3.9% Other Businesses 76.3 73.6 +3.6% Adjustments (44.6) (42.6) (4.6)% France 273.6 281.8 (2.9)% Tobacco & Related 228.7 236.3 (3.2)% Other
Slide 32: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) 2017 2016 Δ% Iberia 104.8 95.1 +10.2% France 67.8 76.2 (10.9)% Italy 59.0 75.7 (22.0)% Corporate & Others (12.9) (12.2) (6.0)% Total Adjusted EBIT 218.8 234.8 (6.8)% 2017 Results presentation / 7 November 2017 / Page 32
Slide 33: Balance Sheet
Balance Sheet (€m) 2017 2016 PP&E and other Fixed Assets 206.0 208.7 Net Long Term Financial Assets 6.1 28.6 Net Goodwill 925.7 919.1 Other Intangible Assets 547.8 602.4 Deferred Tax Assets 19.9 22.4 Net Inventory 1,122.6 1,085.8 Net Receivables 1,791.0 1,793.1 Cash & Cash Equivalents 1,923.6 2,062.
Slide 34: 2017 Results presentation
2017 Results presentation 7 November 2017