Slide 1: H1 Results
H1 RESULTS H1 2022 RESULTS RELEASE HERE ADDITIONAL NON-FINANCIAL INFORMATION RELATING TO THE PERIOD (MEDIA PRESENTATION) HERE
Slide 2: Introductory Note
H1RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2
Slide 3: Content
H1RESULTS CONTENT 1. H1 2022 HIGHLIGHTS 4. H1 2022 EBITDA PERFORMANCE 4.1. EBITDA 2. H1 2022 KEY FIGURES 4.2. EBITDA Margin 2.1. Income Statement 5. H1 2022 FINAL REMARKS 2.2. Cash Flow 2.3. Balance Sheet APPENDIX 2.4. CAPEX Financial Statements 3. H1 2022 SALES PERFORMANCE Outlook 2022 3.1. Group 3
Slide 4: H1 2022 Highlights (1/3)
H1RESULTS 1. H1 2022 Poland: resilient food demand supported by the Government’s anti-inflation measures and competitiveness in the sector, further strengthened by the influx of Ukrainian HIGHLIGHTS refugees into the country Portugal: pressure over consumer demand and trading down in food due to inc
Slide 5: H1 2022 Highlights (2/3)
H1RESULTS 1. H1 2022 Solid growth across all our banners reinforced by our HIGHLIGHTS strong value propositions and competitiveness +20.0% Sales Momentum reinforced by positive food sector dynamics in (+21.7% excl. FX) (2/3) Poland and the recovery of tourism in Portugal Inflation was also a feature
Slide 6: H1 2022 Highlights (3/3)
H1RESULTS 1. H1 2022 HIGHLIGHTS link The Group reaffirmed its policies, commitments and progress in fighting deforestation and the conversion of high conservation value ecosystems, with the (3/3) release for the second consecutive year of its report “Contributing to a forest positive future” THE GRO
Slide 7: H1 2022 Key Figures: Income Statement
H1RESULTS 2. H1 2022 KEY FIGURES 2.1. INCOME STATEMENT SALES DRIVEN PERFORMANCE PRICE COMPETITIVE STRATEGY DROVE GROWTH IN SALES AND PROFITS OPERATIONAL LEVERAGE OFFSETING INCREASING COST INFLATION 7
Slide 8: H1 2022 Key Figures: Cash Flow
H1RESULTS 2. H1 2022 KEY FIGURES 2.2. CASH FLOW CASH DRIVEN STRATEGY DELIVERING 8
Slide 9: H1 2022 Key Figures: Balance Sheet
H1RESULTS 2. H1 2022 KEY FIGURES 2.3. BALANCE SHEET STRONG BALANCE SHEET MAINTAINED NET CASH POSITION (EXCL. CAPITALISED OPERATING LEASES) AT €593MN AFTER DIVIDEND PAYMENT IN MAY OF €493 MN 9
Slide 10: H1 2022 Key Figures: CAPEX
H1RESULTS 2. H1 2022 KEY FIGURES 2.4. CAPEX CAPEX OF €318 MN IN H1 22 • New Stores 40 Biedronka (33 net) 8 Hebe (5 net) 3 Pingo Doce (2 net) 57 Ara (56 net) • Revamping 127 Biedronka 15 Pingo Doce (12 in-depth and 3 lifting) 1 Ara 10
Slide 11: H1 2022 Sales Performance: Group
H1RESULTS 3. H1 2022 SALES Strong sales performance across all businesses PERFORMANCE • • Group LFL in H1 at 17.5% 3.1. GROUP Contribution to Sales Growth (Mn €) +21.7% +20.0% 11
Slide 12: H1 2022 Sales Performance: Biedronka
H1RESULTS 3. H1 2022 • Strength of the offer and reinforced price position maintaining strong sales SALES momentum and market share increase PERFORMANCE • Higher inflation and influx of refugees into the country were also features of the performance 3.2. BIEDRONKA • 40 stores opened in H1 (33 net ad
Slide 13: H1 2022 Sales Performance: Hebe
H1RESULTS 3. H1 2022 SALES PERFORMANCE • Good recovery against H1 21 that was still impacted by pandemic-related restrictions Despite changes in consumer behaviour, e-commerce continued progressing well 3.3. HEBE • and represented 14.6% of sales (14.0% in H1 21) 13
Slide 14: H1 2022 Sales Performance: Pingo Doce
H1RESULTS 3. H1 2022 SALES • Leveraging a strong model - maintaining the strength of the offer in perishables and food solutions while offering relevant saving opportunities in a pressured consumer PERFORMANCE environment Signs of trading down and increasing share of private label on total sales 3.4
Slide 15: H1 2022 Sales Performance: Recheio
H1RESULTS 3. H1 2022 SALES PERFORMANCE • • Strong model well placed to benefit from HoReCa recovery • The comparison against H1 21 still benefited from the lifting of the pandemic 3.5. RECHEIO restrictions * Includes export activity 15
Slide 16: H1 2022 Sales Performance: Ara
H1RESULTS 3. H1 2022 SALES Assertive offer and stronger price position delivering strongly PERFORMANCE • • Inflation was a relevant feature of the performance 3.6. ARA • 57 stores opened in H1 (56 net additions) and 1 remodelling 16
Slide 17: H1 2022 EBITDA Performance: EBITDA
H1RESULTS 4. H1 2022 EBITDA PERFORMANCE • Strategic decision to give priority to price competitiveness driving EBITDA growth 4.1. EBITDA • Good delivery in all banners Contribution to EBITDA Growth (Mn €) +21.2% +19.1% 17
Slide 18: H1 2022 EBITDA Performance: EBITDA Margin
H1RESULTS 4. H1 2022 Biedronka margin reflecting, price investment, reinforced in Q2, in a context of EBITDA • mounting cost inflation PERFORMANCE • Sales densities improving at Ara and building up profitability Improving EBITDA margins for Hebe and Recheio against a more benign H1 21 4.2. EBITDA MA
Slide 19: H1 2022 Final Remarks
H1RESULTS 5. H1 2022 FINAL REMARKS Well prepared models in all banners and a clear commitment towards price competitiveness delivered strong performance at sales which in WE MAINTAIN THE turn drove a solid increase in profits OUTLOOK FOR 2022 AS PRESENTED ON Positive, although more cautious, consume
Slide 20: Appendix
H1RESULTS APPENDIX FINANCIAL STATEMENTS OUTLOOK 2022 20
Slide 21: Financial Statements (1/11): Income Statement
H1RESULTS FINANCIAL STATEMENTS (1/11) INCOME STATEMENT 21
Slide 22: Financial Statements (2/11): Cash Flow
H1RESULTS FINANCIAL STATEMENTS (2/11) CASH FLOW 22
Slide 23: Financial Statements (3/11): Balance Sheet
H1RESULTS FINANCIAL STATEMENTS (3/11) BALANCE SHEET 23
Slide 24: Financial Statements (4/11): EBITDA Breakdown
H1RESULTS FINANCIAL STATEMENTS (4/11) EBITDA BREAKDOWN 24
Slide 25: Financial Statements (5/11): Financial Results
H1RESULTS FINANCIAL STATEMENTS (5/11) FINANCIAL RESULTS 25
Slide 26: Financial Statements (6/11): Sales Breakdown
H1RESULTS FINANCIAL STATEMENTS (6/11) SALES BREAKDOWN 26
Slide 27: Financial Statements (7/11): Sales Growth
H1RESULTS FINANCIAL STATEMENTS (7/11) SALES GROWTH 27
Slide 28: Financial Statements (8/11): Store Network
H1RESULTS FINANCIAL STATEMENTS (8/11) STORE NETWORK Number of Stores 2021 Openings Q1 22 Q2 22 Closings H1 22 H1 22 H1 21 Biedronka * 3,250 16 24 7 3,283 3,154 Hebe 291 3 5 3 296 273 Pingo Doce 465 2 1 1 467 456 Recheio 42 0 0 0 42 42 Ara 819 14 43 1 875 704 Closings Openings Sales Area (sqm) 2021 R
Slide 29: Financial Statements (9/11): CAPEX
H1RESULTS FINANCIAL STATEMENTS (9/11) CAPEX (€ Million) H1 22 Weight H1 21 Weight Biedronka 161 51% 120 60% Distribution Portugal 95 30% 43 21% Ara 34 11% 19 9% Others 28 9% 18 9% Total CAPEX 318 100% 200 100% 29
Slide 30: Financial Statements (10/11): Working Capital
H1RESULTS FINANCIAL STATEMENTS (10/11) WORKING CAPITAL 30
Slide 31: Financial Statements (11/11): Total Borrowings
H1RESULTS FINANCIAL STATEMENTS (11/11) TOTAL BORROWINGS 31
Slide 32: Outlook 2022 (1/8)
H1RESULTS OUTLOOK 2022 (1/8) (released by March 9, 2022) The war initiated in Ukraine will have impacts that at this point are impossible to predict THE CONTEXT IS The rapid increase in food, energy, and transportation prices are today UNCERTAINT exacerbated by the military conflict and by increased
Slide 33: Outlook 2022 (2/8)
H1RESULTS OUTLOOK 2022 (2/8) (released by March 9, 2022) GROWTH & COMPETITIVENESS PROFITABILITY SUSTAINABILITY LONG TERM Focus on consumers’ Enhance the quality Increase productivity Deliver on the targets set for our STRATEGIC needs and expansion of value propositions and efficiency pillars of corp
Slide 34: Outlook 2022 (3/8)
H1RESULTS OUTLOOK 2022 (3/8) (released by March 9, 2022) In the current circumstances Biedronka’s priority is to stand by the Polish consumers and live up to its claim in a CLEAR moment of decrease in disposable income. Despite the poor visibility at this moment over the impact of recent events in U
Slide 35: Outlook 2022 (4/8)
H1RESULTS OUTLOOK 2022 (4/8) (released by March 9, 2022) CLEAR Expand its store network in Poland (opening of c.30 stores in 2022) while continuing to focus on its STRATEGIC online growth strategy, which includes expanding its operation into new markets PRIORITIES Price competitiveness and promotion
Slide 36: Outlook 2022 (5/8)
H1RESULTS OUTLOOK 2022 (5/8) (released by March 9, 2022) CLEAR STRATEGIC Consolidate price leadership and run a dynamic commercial strategy PRIORITIES Develop the assortment to drive an increased share of wallet. Private brand as a key area of the offer Gain scale - expansion as central to the strat
Slide 37: Outlook 2022 (6/8)
H1RESULTS OUTLOOK 2022 (6/8) (released by March 9, 2022) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS (1/2) Develop in all banners food solutions that are healthier and respond to specific nutritional needs (vegan, CLEAR lactose-free and/or gluten-free solutions, children, age
Slide 38: Outlook 2022 (7/8)
H1RESULTS OUTLOOK 2022 (7/8) (released by March 9, 2022) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS (2/2) Strengthen the involvement in social projects in all geographies, targeted to children, youngsters and CLEAR elderly people from vulnerable environments, focusing on asp
Slide 39: Outlook 2022 (8/8)
H1RESULTS OUTLOOK 2022 (8/8) (released by March 9, 2022) Acknowledging that we face an unprecedent level of uncertainty ahead of us, we rely on… SUMMARY Our teams’ preparation to quickly adapt to changes in the contexts where the banners operate to better serve the consumers Our stronger market posi
Slide 40: Disclaimer
H1RESULTS DISCLAIMER Statements in this presentation that are forward-looking are based on current expectations of future events and are subject to risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainti
Slide 41: Jerónimo Martins
Jeronimo Martins