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Casino, Guichard-perrachon Sa — H1 2013 Earnings Presentation
64 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 25, 2013
Slide 1: 2013 Half-Year Results
2013 HALF-YEAR RESULTS 25 July 2013
Slide 2: H1 2013 Key Figures (Continuing operations)
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES H1 2013 KEY FIGURES (Continuing operations) H1 2013 Change vs. H1 2012 Consolidated net sales €23,767m +37% EBITDA €1,456m +45% EBITDA margin 6.1% +34bp Trading profit €969m +51.9% Trading margin 4.1% +40bp Net profit, group share €594m vs. €125m Net under
Slide 3: Finalization of strategic moves and strong growth of activity and earnings
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES FINALIZATION OF STRATEGIC MOVES (BRAZIL AND MONOPRIX) AND STRONG GROWTH OF ACTIVITY AND EARNINGS Strong growth in Group half-year net sales (+37%) Internationally, organic growth is still sustained (+9%*) and the full consolidation of GPA has had a fav
Slide 4: Q2 2013 Net sales
Q2 2013 Net sales H1 2013 Highlights and H2 2013 Perspectives Results Conclusion Appendices Jean-Charles NAOURI Chairman and Chief Executive Officer
Slide 5: Very sharp increase in Group net sales in Q2: +40.4%
Q2 2013 NET SALES VERY SHARP INCREASE IN GROUP NET SALES IN Q2: +40.4% Changes in sales (in €m) Scope Currency Organic* Petrol and calendar effect +43.8% +40.4% +3% -1.7% -4.7% 12,086 8,609 Q2 2012 Q2 2013 Group net sales benefited from the full consolidation of GPA and Monoprix as well as sales g
Slide 6: In France, organic sales in line with Q1 despite price cuts
Q2 2013 NET SALES IN FRANCE, ORGANIC SALES ARE IN LINE WITH Q1 DESPITE PRICE CUTS AND CONSUMPTION ENVIRONMENT Organic growth Q2 2013 vs. Q2 2012* Casino France +9.6% +2.6% -3.4% -3.3% -3.6% -3.3% -5.7% -7.9% Q1 Q2 FP-LP Monoprix Casino Superettes Géant Cdiscount France France supermarkets Casino hyp
Slide 7: Continued highly sustained growth of international sales in Q2
Q2 2013 NET SALES CONTINUED HIGHLY SUSTAINED GROWTH OF INTERNATIONAL SALES IN Q2 Organic* sales growth in International markets Latin America Asia 15.9% 13.1% 9.6% 9.8% 10.3% 9.9% 9.0% 8.4% 7.5% 8.7% 8.5% 7.8% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Sustained and regular pace of growth in
Slide 8: H1 2013 Highlights and H2 2013 Perspectives
Q2 2013 Net sales H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES Results Conclusion Appendices Jean-Charles NAOURI Chairman and Chief Executive Officer
Slide 9: Gradual improvement of traffic and volumes for Géant in the first half
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES GRADUAL IMPROVEMENT OF TRAFFIC AND VOLUMES FOR GÉANT IN THE FIRST HALF Decrease in reported sales under the effect of significant price cuts; the new price positioning is very competitive Sequential improvement of same-store sales in food (-5.9%* in Q2
Slide 10: Progressive inflection in traffic
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES PROGRESSIVE INFLECTION IN TRAFFIC Improved price indices for the banner* Gradual improvement during H1 of both volumes, driven by the private label and Improved prices customer traffic following the price cuts Customer traffic Roll-out of operating e
Slide 11: Implementation of new growth levers
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES IMPLEMENTATION OF NEW GROWTH LEVERS Accelerated roll-out of the Casino Shop and Shopping banners, with the successful conversion of 71 stores in the cities of Lyon and Marseille Roll-out of the Casino Shop Continued openings in new sales outlets (train
Slide 12: Good progression in H1
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES GOOD PROGRESSION IN H1 Sales in H1 held up well (+1.6% organic*) driven by improved same-store sales and by sustained expansion of all formats Sequential increase Successful commercial repositioning of banner in organic growth*: and its new visual iden
Slide 13: Confirmation of FPLP model's robustness
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES CONFIRMATION OF FPLP MODEL’S ROBUSTNESS Stable published margin Progression of organic margin thanks to the cost control Franprix: Strengthening of the offering’s appeal through the increasing number of Leader Price private-label products under €1
Slide 14: Continued growth well above market trend in H2 2013
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES CONTINUED GROWTH WELL ABOVE MARKET TREND Strong growth of business volume in Q2 (+16.5%) Growth in sales (+9.6%) and marketplace, which already represents 13% of business volume as of the end of June SALES UP IN H1: Increase in the number of unique v
Slide 15: Brazil: excellent performance in H1
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES BRAZIL: EXCELLENT PERFORMANCE IN H1 GPA Food: in Q2, acceleration of growth Excellent Q2 for Viavarejo Strong growth of the new activities: Real estate E-commerce 2013 Half-Year Results 15
Slide 16: Brazil: acceleration in GPA Food's organic growth in Q2
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES BRAZIL: IN Q2, ACCELERATION IN GPA FOOD’S GPA Food ORGANIC GROWTH Strong growth in ex-calendar same-store net sales of GPA Food (+8.4%* in Q2 vs. +5.5%* in Q1) Excellent performance of Assai cash & carry and Minimercado convenience formats with redefin
Slide 17: Brazil: excellent Q2 for Viavarejo
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES BRAZIL: EXCELLENT Q2 FOR VIAVAREJO GPA Non-Food Highly sustained growth in same-store sales (+12% in Q2 vs. +7.3% in Q1) Very strong e-commerce growth in Q2 (+24.1%) driven by changes to price strategy and product categories rolled out, reinforced serv
Slide 18: Americas commercial gallery, Assai store, Viavarejo retail operation
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES Americas commercial gallery Assai store Viavarejo retail operation 2013 Half-Year Results 18
Slide 19: Good performance of Éxito in a context of economic slowdown
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES GOOD PERFORMANCE OF ÉXITO IN A CONTEXT OF ECONOMIC SLOWDOWN Organic sales growth of +4,8%* in H1 Leadership in market share confirmed in Colombia and Uruguay Expansion focused on proximity and discount formats, which continue to gain market share: 20
Slide 20: In Thailand, strong growth of business volumes in H1
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES IN THAILAND, STRONG GROWTH OF BUSINESS VOLUMES IN H1 Sales of €1.6bn, up 11.4%, of which +9% is organic* Same-store growth of +3% in Q2 greater than Q1 (+2.4%), related to leading price positioning, strong success of retail operations and development o
Slide 21: Vietnam
H1 2013 HIGHLIGHTS AND H2 2013 PERSPECTIVES STRONG ORGANIC GROWTH IN Q2 VIETNAM Very strong organic sales growth in Q2 Continued expansion with opening of 3 hypermarkets and 3 adjacent commercial galleries in H1 (2 in Q2) H1 NET SALES: €236m, +11.4% Continuous improvement of quality, price and
Slide 22: Results
Q2 2013 Net sales H1 2013 Highlights and H2 2013 Perspectives RESULTS Conclusion Appendices Antoine GISCARD d’ESTAING Chief Financial Officer
Slide 23: Preliminary notes
RESULTS PRELIMINARY NOTES The financial statements for the six months ended 30 June 2013 prepared by the Board of Directors on 24 July 2013 have been reviewed by the statutory auditors All of the figures indicated in this presentation concern continuing operations, unless otherwise indicated O
Slide 24: Acquisition of Monoprix
RESULTS ACQUISITION OF MONOPRIX Casino Group received the approval of the French Competition Authority to take exclusive control of Monoprix Group, which constitutes the outcome of a strategy centred on the proximity format and initiated in 1996 The authorisation stipulates the disposal of 58 st
Slide 25: Sustained growth of activity and operating results
RESULTS SUSTAINED GROWTH OF ACTIVITY AND OPERATING RESULTS Continuing operations (in € millions) H1 2012 H1 2013 Change Net sales 17,348 23,767 +37% Gross margin 4,410 6,091 +38.1% As a % of sales 25.4% 25.6% +21bp EBITDA* 1,004 1,456 +45% EBITDA margin 5.8% 6.1% +34bp Depreciation and amortisation
Slide 26: Strong increase in consolidated EBITDA and trading profit
RESULTS STRONG INCREASE IN CONSOLIDATED EBITDA AND TRADING PROFIT Change in EBITDA (in €m) Change in trading profit (in €m) Scope Currency Organic Scope Currency Organic +45% +59.6% +51.9% 50.3% -7.2% +1.8% -8.6% +0.9% 969 1,456 1,004 638 H1 2012 H1 2013 H1 2012 H1 2013 Strong increase in the Grou
Slide 27: Strong contribution by international operations to growth of trading profit
RESULTS STRONG CONTRIBUTION BY INTERNATIONAL OPERATIONS TO GROWTH OF TRADING PROFIT IN H1 2013 Trading profit (in €m) H1 2013 trading margin 969 4.9% 638 715 4.1% +84.8% International 387 2.8% +1.2% France 251 254 H1 2012 H1 2013 Group France International In H1, total increase in trading profit o
Slide 28: Stable margin in France
RESULTS STABLE MARGIN IN FRANCE Trading profit (in € millions) H1 2012 Margin H1 2013 Margin Change Casino France 119 2% 86 1.6% -47bp Franprix-Leader Price 67 3.1% 68 3.1% -2bp Monoprix 64 6.4% 100 6.6% +18bp FRANCE 251 2.8% 254 2.8% -2bp Slight growth of trading profit related to improved Monopr
Slide 29: Increase in profitability of international subsidiaries
RESULTS INCREASE IN PROFITABILITY OF INTERNATIONAL SUBSIDIARIES Trading profit (in € millions) H1 2012 Margin H1 2013 Margin Change Latin America 265 4.2% 601 4.9% +65bp Asia 117 7.1% 114 6.2% -91bp Other 5 n.a. 0 n.a. n.a. INTERNATIONAL 387 4.6% 715 4.9% +26bp Strong organic growth in trading pro
Slide 30: Detailed income statement
RESULTS DETAILED INCOME STATEMENT Continuing operations (in € millions) H1 2012 H1 2013 Change Trading profit 638 969 +51.9% Other operating income and expense, net (104) 530 Finance costs, net (222) (309) Other financial income and expense, net 21 (31) Profit before tax 333 1,158 n.s. Income tax ex
Slide 31: Other operating income and expenses
RESULTS OTHER OPERATING INCOME AND EXPENSES (in € millions) H1 2012 H1 2013 Capital gain on asset disposals 5 59 Other operating income and expense, net (109) 471 Net income related to scope operations (61) 621 Net impairment of assets (1) (25) Provisions and charges for restructuring (46) (40) Tax,
Slide 32: Good management of finance costs excluding scope effects
RESULTS GOOD MANAGEMENT OF FINANCE COSTS EXCLUDING EFFECTS RELATED TO THE SCOPE OF CONSOLIDATION (in € millions) H1 2012 H1 2013 France (133) (130) Brazil (92) (183) Thailand (15) (13) Other international 18 17 TOTAL (222) (309) In France, stability of finance costs, the decrease in the cost of fi
Slide 33: Increase in underlying minority interests due to changes in scope
RESULTS INCREASE IN UNDERLYING MINORITY INTERESTS DUE TO CHANGES IN SCOPE in € millions H1 2012 H1 2013 FPLP (4) (3) GPA (1) 169 Big C Thailand 29 32 Exito 35 36 Other 3 4 Mercialys* 31 30 TOTAL 93 268 The increase in minority interests is associated with the change in the Group's stake in Mercial
Slide 34: Net underlying profit growth of +8.3%
RESULTS NET UNDERLYING PROFIT GROWTH OF +8.3% (in € millions) H1 2012 underlying H1 2013 underlying TRADING PROFIT 638 969 Other operating income and expense, net 0 0 OPERATING PROFIT 638 969 Finance costs, net (222) (309) Other financial income and expense, net (3) (4) Income tax expense (126) (192
Slide 35: Net underlying EPS growth of +7.9%
RESULTS NET UNDERLYING EPS GROWTH OF +7.9% Continuing operations H1 2012 H1 2013 Change Diluted average number of shares 111,442,424 112,831,906 +1.2% Diluted EPS* 1.03 5.18 +404.3% Diluted underlying EPS* 1.50 1.62 +7.9% * Adjusted for dividends paid to holders of TSSDI : €11m in 2012 and €10m in 2
Slide 36: Priority allocation of investments to buoyant countries
RESULTS PRIORITY ALLOCATION OF INVESTMENTS TO BUOYANT COUNTRIES Operating investments (CAPEX)* H1 2012 H1 2013 €542m €782m France €312m €230m €317m €465m 58% 42% 41% 59% International * Investments in property, plant & equipment and intangible assets 2013 Half-Year Results 36
Slide 37: Change in Group net financial debt
RESULTS CHANGE IN GROUP NET FINANCIAL DEBT in €m GPA** Dividends paid (57) Monoprix transaction transaction Cash (436) Others Flow Net (8,856) capex (1,087) (6,043) Change in WCR (1,434) (72) (1,596) 1,871 in €m H2 2012 1,061 1,062 (815) H1 2013 810 (1,135) (782) NFD NFD 30/06/2012* 30/06/2013 By
Slide 38: Strengthened liquidity position
RESULTS STRENGTHENED LIQUIDITY POSITION €3,150m in liquidity* at 30/06/2013 Bond maturities** well spread out over time in €m in €m 2,413 1,000 1,000 888 850 750 578 600 600 737 508 Cash and Undrawn 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 cash confirmed lines equivalents of credit In Apr
Slide 39: Contribution from listed companies to enterprise value was €10bn
RESULTS AT THE END OF H1 2013, THE CONTRIBUTION FROM LISTED COMPANIES TO THE ENTERPRISE VALUE WAS €10BN Share price Market cap Casino’s share NFD at 30/06/2013 Contribution to at %-owned Listed companies (100%, €m) (€m) (€m) Group’s EV (€m) 28/06/2013 GPA (Brazil) BRL 98.2 9,056 38,1%* 3,450 (1,008)
Slide 40: Conclusion
Q2 2013 Net sales 2012 Highlights and 2013 Perspectives Results CONCLUSION Appendices Jean-Charles NAOURI Chairman and Chief Executive Officer
Slide 41: Conclusion
CONCLUSION CONCLUSION Casino is now benefiting from an improved profile of assets thanks to its recent acquisitions (GPA and Monoprix), which has led to: a unique mix of formats in France, characterized by the predominance of convenience, discount and e-commerce on its international markets, a
Slide 42: In France, an improved profile
CONCLUSION IN FRANCE, AN IMPROVED PROFILE Sales - France (excluding petrol) H1 2012 H1 2013, proforma H2 2013* E-commerce and other 10% 9% Hypermarkets 25% 20% Convenience 71% 65% and Discount *Monoprix fully consolidated over the half-year, Mercialys deconsolidated 2013 Half-Year Results 42
Slide 43: International: continued strengthening in the buoyant countries
CONCLUSION INTERNATIONAL: CONTINUED STRENGTHENING IN THE BUOYANT COUNTRIES The Group's subsidiaries benefit from a leadership in size and prices in the markets where they operate, where they are perceived as local banners Casino is pursuing in a vigorous way its expansion focused on convenience,
Slide 44: Casino is confident and maintaining its 2013 targets
CONCLUSION CASINO IS CONFIDENT ABOUT ITS DIFFERENT BUSINESSES AND IS MAINTAINING ITS 2013 TARGETS International: growth Growth is expected to continue in the second half of 2013, underpinned by increased consumption and by expansion on the Group's four key markets Casino favours the developmen
Slide 45: Appendices
Q2 2013 Net sales H1 2013 Highlights and H2 2013 Perspectives Results Conclusion APPENDICES
Slide 46: Simplified consolidated balance sheet
APPENDICES SIMPLIFIED CONSOLIDATED BALANCE SHEET in € millions 31/12/2012** 30/06/2013 Goodwill 10,832 11,911 Intangibles and property, plant and equipment 13,046 13,345 Investments in associates 260 794 Non-current assets 1,812 1,831 Non-current derivative instruments* 246 111 Other non-current ass
Slide 47: Cash flow statement
APPENDICES CASH FLOW STATEMENT in € millions H1 2012 H1 2013 Net financial debt at beginning of period (5,379) (6,260) Cash flow 547 894 Change in working capital requirement (891) (1,136) Other* 160 374 Net cash flow from operating activities, after tax (184) 132 Capital expenditure (542) (782) Acq
Slide 48: Breakdown of change in WCR
APPENDICES BREAKDOWN OF CHANGE IN WCR Change in WCR, in €m H1 2012 H1 2013 « Goods » France (258) (327) « Goods » International (257) (319) « Non-goods » (376) (490) TOTAL (891) (1,136) 2013 Half-Year Results 48
Slide 49: Definition of underlying profit
APPENDICES DEFINITION OF UNDERLYING PROFIT Underlying profit corresponds to net profit from continuing operations adjusted for the impact of other operating income and expense (as defined in the “Significant Accounting Policies” section of the notes to the annual consolidated financial statements)
Slide 50: Reconciliation of reported profit to underlying profit
APPENDICES RECONCILIATION OF REPORTED PROFIT TO UNDERLYING PROFIT H1 2012 H1 2012 Adjustments underlying H1 2013 Adjust- H1 2013 in € millions ments underlying Trading profit 638 638 969 969 Other operating income and expense, (104) 104 0 530 (530) 0 net Operating profit 534 104 638 1,499 (530) 969
Slide 51: France and international earnings
APPENDICES FRANCE AND INTERNATIONAL EARNINGS FRANCE in € millions H1 2012 H1 2013 Change Net sales 9,026 9,201 +1.9% EBITDA 438 459 +4.7% EBITDA margin 4.9% 5% +13bp Trading profit 251 254 +1.2% Trading margin 2.8% 2.8% -2bp INTERNATIONAL in € millions H1 2012 H1 2013 Change Net sales 8,322 14,566 +
Slide 52: Breakdown of reported sales
APPENDICES BREAKDOWN OF REPORTED SALES Change (organic, excl. H1 2012 H1 2013 Chg. in € millions petrol) Franprix-Leader Price 2,158 2,209 +2.4% -4.2% Monoprix 1,006 1,518 +50.8% +0.4% Casino France 5,862 5,474 -6.6% -6% Géant Hypermarkets 2,548 2,271 -10.9% -11.3% Casino Supermarkets 1,799 1,671 -7
Slide 53: Change in same-store sales excluding petrol
APPENDICES CHANGE IN SAME-STORE SALES EXCLUDING PETROL FRANCE Q1 2013 Q2 2013 H1 2013 HM Géant -10.2% -10.5% -10.4% Casino SM -8.3% -8.7% -8.5% Franprix -4% -3% -3.5% Leader Price -2.5% -4.1% -3.3% Monoprix -3.3% 0% -1.7% INTERNATIONAL Q1 2013 Q2 2013 H1 2013 Amérique Latine +5.5% +5.7% +5.6% Asie +
Slide 54: Calendar effects
APPENDICES CALENDAR EFFECTS Q2 2013 H1 2013 Géant Hypermarkets -2.7% -1.6% Casino Supermarkets -2.4% -1.6% Superettes +0.1% -0.5% Cdiscount - - Monoprix -0.3% -1.2% FPLP -0.8% -1.5% France -1.6% -1.4% International -0.9% -0.5% GROUP -1.2% -0.9% 2013 Q3 Q4 2013 France +0.7% -0.7% -0.7% International
Slide 55: Other financial income and expense
APPENDICES OTHER FINANCIAL INCOME AND EXPENSE in € millions H1 2012 H1 2013 Change in derivatives 24 (14) excluding hedging instruments Foreign exchange gains (4) (4) and losses off-NFD Discounting adjustments (0) (7) Other 1 (6) TOTAL 21 (31) 2013 Half-Year Results 55
Slide 56: Shareholder structure and breakdown of GPA minority interests
APPENDICES SHAREHOLDER STRUCTURE AND BREAKDOWN OF GPA MINORITY INTERESTS 38.1% 52.4% 43.9% 50.1% Minority interests: 61.9% Minority interests: 47.6% Minority interests: 6% At 30 June 2013 Economic interest (%) GPA Food Viavarejo Nova.com Casino Group 38.1% 20% 26.7% Minority interests 61.9% 80% 73.3
Slide 57: Average exchange rates
APPENDICES AVERAGE EXCHANGE RATES Q1 2012 Q1 2013 Chg. % H1 2012 H1 2013 Chg. % Argentina (ARS/EUR) 0.1757 0.1511 -14.0% 0.1755 0.1485 -15.4% Uruguay (UYP/EUR) 0.0391 0.0395 0.9% 0.0386 0.0393 +1.8% Thailand (THB/EUR) 0.0246 0.0254 3.3% 0.0248 0.0255 +3.0% Vietnam (VND/EUR) (x 1,000) 0.0367 0.0364 -
Slide 58: Share of profit of associates
APPENDICES SHARE OF PROFIT OF ASSOCIATES in € millions H1 2012 H1 2013 France (20) (6) International 5 4 TOTAL (15) (2) 2013 Half-Year Results 58
Slide 59: Puts included in net financial debt
APPENDICES PUTS INCLUDED IN NET FINANCIAL DEBT Value at Value at Exercise in € millions % capital 31/12/2012 30/06/2013 period At any time GPA 7.34 399 428 between 22/06/2014 and 21/06/2022 Franprix - Majority-owned Various dates 97 54 Leader Price franchise stores At any time Uruguay 15 15 2021 A
Slide 60: Off-balance sheet puts
APPENDICES OFF-BALANCE SHEET PUTS Value at Value at Exercise in € millions % capital 31/12/2012 30/06/2013 period Franprix - Minority-owned 157 65 Various dates Leader Price franchise stores At any time Uruguay (Disco) 90 90 2021 Other 15 15 Various dates TOTAL 262 171 (off-balance sheet) 2013 Hal
Slide 61: Changes in equity
APPENDICES CHANGES IN EQUITY 871 (406) in €m (10) (819) Distribution TSSDI 9 (372) dividends (98) 15,201 Profit for period Translation adjustment Capital Change in Other* increase scope 14,377 & stock options of plans consolidation and minority interests 31/12/2012 30/06/2013 * Including evolution i
Slide 62: H1 stores openings in France and internationally
APPENDICES H1 STORES OPENINGS IN FRANCE AND INTERNATIONALLY Gross store openings FRANCE Casino Supermarkets 5 Superettes* 1,175 Franprix 5 Leader Price 3 Monoprix 21 INTERNATIONAL Brazil 59 Colombia 89 Thailand 93 Vietnam 3 * Includes supply of 1.130 Total stations 2013 Half-Year Results 62
Slide 63: Network of stores
APPENDICES NETWORK OF STORES FRANCE 31/12/2012 30/06/2013 Géant Casino 125 126 Casino Supermarkets 445 440 Franprix 891 865 Monoprix 542 561 Leader Price 604 594 Superettes* 6,517 7,484 Drive-throughs 97 99 Other 333 335 TOTAL FRANCE 9,554 10,504 INTERNATIONAL Argentina 24 19 Uruguay 52 52 Brazil 1,
Slide 64: Disclaimer
DISCLAIMER This presentation contains forward-looking information and statements about Casino. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objective
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