Slide 1: 2014 Results presentation
2014 Results presentation November 2014
Slide 2: Disclaimer
Disclaimer This document has been prepared by Compañía de Distribución Integral Logista Holdings, S. A. U. (“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
Slide 3: Index
Index: Results Highlights Business Model Business Review Financial Review Outlook 2014 Results presentation / November 2014 / Page 3
Slide 4: 2014 Results Highlights
2014 Results Highlights Growing results in a still difficult market o +2.4% Economic Sales growth to €1,036m • Revenues declining 3.6% to 9,507 due to tobacco volume decline (-3% cigarette + RYO) and lower retail selling price increase • Higher margin over revenues due to additional services and inc
Slide 5: Business Model
Business Model 2014 Results presentation / November 2014 / Page 5
Slide 6: Unique Business Model in Southern Europe
Unique Business Model in Southern Europe Adapted services to create value Manufacturers o Warehousing & stock o Purchasing products o Collection Services customised by management o Commercial o Business Intelligence sector based on o Picking o Promotional activities o Sell out information proprietar
Slide 7: Unparalleled Access to Retail Networks
Unparalleled Access to Retail Networks Keeping sectors & channels specialisation and know-how Documents Transport Tobacco Wholesaling Pharma Publishing Sectors & Telephony Services Countries Channels Tobacconists Kiosks Bookshops Petrol Stations Hospitals Pharma
Slide 8: Business Diversification
Business Diversification Across geographies and activities Geographical Split Breakdown of activities: Ec. Sales 2 Eco. Sales: €1,036m Other 10% France Transport Tobacco & 29% 20% Related Iberia 70% 51% Italy 20% Adj. EBIT: €221m 1 o Tobacco & Related in all 3 regions • Italy, less developed in Rela
Slide 9: Full Geographic Coverage but Asset Light Profile
Full Geographic Coverage but Asset Light Profile... Providing flexibility while ensuring proximity to PoS o Main warehouses are owned, others rented • Inventories. Picking automation o Some activities outsourced, integrated with our systems. Managed and controlled by Logista, complying with high sec
Slide 10: Supported by Technology
... Supported by Technology Investing in differentiation o Advanced IT Systems • Full integration with manufacturers CAPEX (€ mn.) • Efficiency in operations. Automatic handling • Routes’ control and design in transport 39 35 • Telematic connection with point of sales 16 17 o The best standards of c
Slide 11: The widest value chain
The widest value chain Resulting in superior margins Goods flow Information flow Payment flow Network Management Suppliers Manufacturers Wholesalers Retailers Consumers Full integration of goods, payments and information flows and full access to widespread retail networks through a single distributo
Slide 12: Business Review
Business Review 2014 Results presentation / November 2014 / Page 12
Slide 13: Business Review: Snapshot by segment
Business Review Snapshot by segment o Macroeconomic environment slowly easing o Slowdown in tobacco volumes decline, lower RSP increases Revenues: €2,558m (-1.9%) o Settlement of tax litigations Iberia Ec. Sales: €527m (+1.2%) o Transport benefitting from activity recovery, Other businesses growth m
Slide 14: Business Review: Iberia
Business Review Iberia o Tobacco volume in Spain, first single digit decline in 5 years: • Cigarette: -3.8% vs. -12% Revenues: €2,183m • RYO: -12.3% vs. +11.3% (-2.7%) Tobacco and Related o Lower RSP increases: +5 cents vs. +25 cents Ec. Sales: €283m o New services (+3.5%) o Market decline in smokin
Slide 15: Business Review: France
Business Review France o Tobacco volume decline slightly decreasing: • Cigarette: -4.6% vs. -9% Revenues: €4,218m • RYO: -2.7% vs. +2.2% (-3.0%) Tobacco and Related o Lower RSP increases: +20 cents vs. +60 cents Ec. Sales: €247m o Wholesale activity affected by general economic environment in H2 (-2
Slide 16: Business Review: Italy
Business Review Italy o Stable tobacco volume: • Cigarette: -0.4% vs. -6.1% • RYO: +3.4% vs. -1.2% Revenues: €2,530m o RSP movements: some brands repositioning to low price segment (-8.0%) Tobacco and Related o Wholesale activity benefitting from a stronger commercial presence Ec. Sales: €210m after
Slide 17: Financial Review
Financial Review 2014 Results presentation / November 2014 / Page 17
Slide 18: Financial Review: P&L
Financial Review: P&L Growing adjusted EBIT margin (€m) 2014 2013 Δ% o Revenues: Higher diversification and lower tobacco RSP Revenues 9,507 9,863 (3.6)% increases not compensating tobacco volume declines Eco. Sales 1,036 1,012 +2.4% o Ec. Sales increase supported by (-) Distribution Costs (643) (62
Slide 19: Financial Review: P&L
Financial Review: P&L Financial results more than offset higher corporate tax (€m) 2014 2013 Δ% Profit from operations 139 123 +12.8% (+) Financial Income 22 7 +198.6% o Positive Financial Result: • Higher remuneration rate (-) Financial Expenses (7) (11) +38.8% • Lower expenses linked to Profit bef
Slide 20: Financial Review: Working Capital
Financial Review: Working Capital Annual evolution of cash position 2.200 2.000 1.800 1.600 Increased cash position at the year 1.400 end based on working capital 1.200 improvement and in spite of extraordinary items in the year: 1.000 800 o payment on final tax assessment 600 resolution (€53.9m) 40
Slide 21: Financial Review: Investments
Financial Review: Investments (€m) 2014 2013 Δ% Maintenance 5.8 4.8 20.8% o Investment in line with previous years Infrastructure 12.0 18.7 (35.8)% o Around 50% dedicated to technology IT investments (technology) 17.2 15.6 10.3% o Limited investment in warehouses: asset light business model Total in
Slide 22: Financial Review: Economic Free Cash Flow
Financial Review: Economic Free Cash Flow (€m) 2014 2013 Δ% EBITDA 259 251 3.1% Movements in long term Prov. (payment) (57) (6) (803.8)% o Impacted by payments from pending litigations settlement Working Capital Variations and Other 30 33 (9.5)% (c.€54m) o Good performance of working Corporate Incom
Slide 23: Financial Review: Dividend Policy
Financial Review: Dividend Policy o Directors will propose a dividend distribution for year ended September 2014 of €74 million, in line with the commitment expresed during the IPO past July • Dividend per share: €0.56 (number of shares: 132,750,000) • Payable in the second quarter of fiscal year 20
Slide 24: Financial Review: Conclusions
Financial Review: Conclusions Highly resilient business model in terms of sales and profits Superior profitability with improving margins Robust Economic Cash Flow profile Attractive Dividend Pay-out profile 2014 Results presentation / November 2014 / Page 24
Slide 25: Outlook
Outlook 2014 Results presentation / November 2014 / Page 25
Slide 26: Outlook 2015
Outlook 2015 o Tobacco volumes: similar trend • No significant tax increases expected o Commercial efforts focus: wholesale growth (gaining SoM in Other products) • Macroeconomic environment may accelerate this growth o Transport improvement boosted by better activity in Spain • Higher than GDP grow
Slide 27: Appendix
Appendix 2014 Results presentation / November 2014 / Page 27
Slide 28: Tobacco Volumes Evolution
Tobacco Volumes Evolution Lower declining trend in all geographies Million Units % Variation Y-o-Y 2014 2013 2012 2011 2014 2013 2012 TOTAL TOTAL Cigarettes 168,895 173,349 189,684 207,638 -2.6% -8.6% -8.6% RYO/MYO 20,126 21,229 20,339 17,275 -5.2% 4.4% 17.7% Cigars 4,040 4,134 4,059 3,734 -2.3% 1.9
Slide 29: Revenues Evolution
Revenues Evolution By segment and activity (€m) 2014 2013 Δ% Iberia 2,558 2,608 (1.9)% Tobacco & Related 2,183 2,242 (2.7)% Transport Services 316 316 +0.2% Other Businesses 110 85 +29.3% Other & Adjustments (51) (34) (48.2)% Italy 2,530 2,749 (8.0)% Tobacco & Related 2,530 2,749 (8.0)% France 4,455
Slide 30: Economic Sales Evolution
Economic Sales Evolution By segment and activity (€m) 2014 2013 Δ% Iberia 527 521 +1.2% Tobacco & Related 283 274 +3.5% Transport Services 208 201 +3.5% Other Businesses 50 47 +8.4% Other & Adjustments (14) (0) n.a. Italy 210 192 +9.4% Tobacco & Related 210 192 +9.4% France 297 298 (0.5)% Tobacco &
Slide 31: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) 2014 2013 Δ% Iberia 109 95 +14.8% Italy 45 38 +18.2% France 79 91 (13.7)% Corporate & Others (12) (13) +8.6% Total Adjusted EBIT 221 211 +4.7% 2014 Results presentation / November 2014 / Page 31
Slide 32: Balance Sheet
Balance Sheet (€m) 2014 2013 PP&E and other Fixed Assets 226 257 Net Long Term Financial Assets 10 12 Net Goodwill 919 919 Other Intangible Assets 713 756 Deferred Tax Assets 59 57 Net Inventory 1,067 1,208 Net Receivables 1,793 1,585 Cash & Cash Equivalents 1,701 1,752 Total Assets 6,488 6,546 Grou
Slide 33: 2014 Results presentation
2014 Results presentation November 2014