Sligro Food Group N.v. · EURONEXT:SLIGR

Sligro Food — H1 2017 Earnings Presentation

44 slides from Sligro Food's earnings presentation, Jul 20, 2017

  1. Slide 1: Half-year figures 2017

    Sligro Food Group N.V. Half-year figures 2017 Amsterdam, 20 July 2017

  2. Slide 2: Agenda

    Half-year figures 2017 Agenda

  3. Slide 3: Net sales

    Net sales H1 - 2017 29,0% 46,3% 24,7% FS Delivery FS Cash & Carry Supermarkets

  4. Slide 4: Net sales Foodservice

    Net sales Foodservice € 43 € 35  € 1,019  € 941     H1 - 2016 Acquisitions Other H1 - 2017 

  5. Slide 5: Net sales: Geographical segmentation

    Net sales: Geographical segmentation

  6. Slide 6: Net sales Food retail

    Net sales Food retail -1.3 416 3.4 414   H1 - 2016 SM changes LfL H1 - 2017  Δ 

  7. Slide 7: Net sales Food retail (H1-2017)

    Net sales Food retail (H1-2017)      

  8. Slide 8: Gross margin

    Stiste) Sligro Food Group NV. amounts *€ million H1-2017 _H1-2016 _H1-2017 _H1-2016 Net sales 1,435 1,355 100.0% 100.0% Gross margin 331 308 23.1% 22.8% Other operating income 7 1 0.5% 0.1% Expenses -264 -243 -18.3% -17.9% EBITDA 74 66 5.2% 4.9% Impairments -3 - -0.2% 0.0% Depreciation -23 -20 -1.6%

  9. Slide 9: Expenses

    Stiste) Sligro Food Group NV. amounts *€ million H1-2017 _H1-2016 _H1-2017 _H1-2016 Net sales 1,435 1,355 100.0% 100.0% Gross margin 331 308 23.1% 22.8% Other operating income 7 1 0.5% 0.1% Expenses -264 -243 -18.3% -17.9% EBITDA 74 66 5.2% 4.9% Impairments -3 - -0.2% 0.0% Depreciation -23 -20 -1.6%

  10. Slide 10: Amortisation Details

    Stiste) Sligro Food Group NV. amounts * € million SFG Foodservice H1-2017. H1-2016 H1-2017 H1-2016 Food retail H1-2017 H1-2016 Software Customer contracts Acquisitions Amortisation reported Specialties for coming years: FS: Increase in amortisation of other intangible assets from ISPC (May) and Tint

  11. Slide 11: EBIT

    Stiste) Sligro Food Group NV. amounts *€ million H1-2017 _H1-2016 _H1-2017 _H1-2016 Net sales 1,435 1,355 100.0% 100.0% Gross margin 331 308 23.1% 22.8% Other operating income 7 1 0.5% 0.1% Expenses -264 -243 -18.3% -17.9% EBITDA 74 66 5.2% 4.9% Impairments -3 - -0.2% 0.0% Depreciation -23 -20 -1.6%

  12. Slide 12: Exceptional, incidental items in reported EBIT

    Exceptional, incidental items in reported EBIT

  13. Slide 13: Net profit

    Stiste) Sligro Food Group NV. amounts *€ million H1-2017 _H1-2016 _H1-2017 _H1-2016 Net sales 1,435 1,355 100.0% 100.0% ~ Gross margin 331 308 23.1% 22.8% Other operating income 7 1 0.5% 0.1% Expenses -264 -243 -18.3% -17.9% EBITDA 74 66 5.2% 4.9% Impairments -3 - -0.2% 0.0% * Depreciation -23 -20 -

  14. Slide 14: Segment results

    Stiste) Sligro Food Group NV. Foodservice Food retail amounts * € million H1-2017 H1-2016 H1-2017 H1-2016 Net sales 1.019 941 416 414 Other operating income 0 0 7 1 EBITDA 60 55 14 11 EBITA 42 39 6 7 EBIT 33 31 2 EBITDA as % of net sales 5,9% 5,9% 3,3% 2,7% EBITA as % of net sales 4,2% 4,2% 1,3% 1,6

  15. Slide 15: Cash flow statement

    Sligro Food Group NV. amounts *€ million H1-2017 H1-2016 Net cash generated from operations 78 79 Interest etc. 1 1 Corporate income tax paid -24 -26 From operating activities 55 54 Acquisitions / divestments -38 $1 Investments in associates Net capital expenditure -39 -35 From investing activities

  16. Slide 16: Financing

    > Sligto Food Group New US private placement shelf facility in April 2016: = ‘Basic agreement’ running for three years, amount of uncommitted facility €100 million, minimum drawdown €10 million at a time — €30 million drawn under the facility immediately in April 2016 = Asecond tranche of €40 millio

  17. Slide 17: Segment cash flow

    Stiste) amounts * € million EBIT Depreciation and amortisation of software Amortisation of other intangible assets Other operating income in CAPEX Changes in working capital Financial income and expense Corporate income tax paid From operating activities Net capital expenditure Free cash flow Acquis

  18. Slide 18: Food retail

    Stiste) Sligro Food Group NV. Food retail Market trends Sligro Food Group Food retail operations Evaluation of Food retail within SFG

  19. Slide 19: Food retail market trends 2017

    Food retail market trends 2017          * Average of IRI and Nielsen figures

  20. Slide 20: Food retail

    Sligro Food Group Food retail       

  21. Slide 21: EMTÉ 3.0 conversion schedule and stores opened

    EMTÉ 3.0 conversion schedule and stores opened As at year-end 2017, 28 stores will have been converted to 3.0 format 4 9 28 24 15 Year-end H1 - 2017 Half-year H2 - 2017 Year-end 2016 2017 2017 3.0 format stores are spread over the entire EMTÉ catchment area

  22. Slide 22: Food retail – loyalty programme

    Food retail – loyalty programme        

  23. Slide 23: Food retail within SFG – our vision (2017 AGM)

    Food retail within SFG – our vision (2017 AGM)           

  24. Slide 24: Food retail within SFG – evaluation of format

    Food retail within SFG – evaluation of format       

  25. Slide 25: Food retail within SFG – evaluation of the future

    Food retail within SFG – evaluation of the future      

  26. Slide 26: Foodservice

    Stiste) Sligro Food Group NV. Foodservice Market trends Sligro Food Group Foodservice 25

  27. Slide 27: Foodservice market trends 2017

    Foodservice market trends 2017   

  28. Slide 28: Foodservice

    Sligro Food Group Foodservice       

  29. Slide 29: Foodservice – Customers

    Sligro Food Group Foodservice – Customers    

  30. Slide 30: Foodservice – 3.0 roll-out

    Sligro Food Group Foodservice – 3.0 roll-out    

  31. Slide 31: Foodservice – Acquisitions

    Sligro Food Group Foodservice – Acquisitions              

  32. Slide 32: Strategic partnership between SFG and Heineken

    Strategic partnership between SFG and Heineken        

  33. Slide 33: Heineken – supply chain integration

    Heineken – supply chain integration       

  34. Slide 34: Foodservice – Online 3.0

    Sligro Food Group Foodservice –– Online 3.0

  35. Slide 35: Roll-out process E-Commerce platform (Online 3.0)

    Roll-out process E-Commerce platform (Online 3.0) Roll-out process survey ON THE BALL ROLL-OUT status 18/7/17 How do our customers rate the roll-out to the new ordering system? Continuous improvement based on customer insights: Half of delivery customers • 3 large-scale surveys currently have access

  36. Slide 36: The new E-Commerce platform (Online 3.0)

    The new E-Commerce platform (Online 3.0) NEW FUNCTIONALITIES USE OF SEARCH ENGINE USER-FRIENDLINESS Customers are satisfied with the following In Customers rate the user-friendliness functionalities: 1 in 3 sessions, of the new system as  Easy browsing customers “Very pleasant”  Even faster orderi

  37. Slide 37: Foodservice - Sligro Belgium

    Sligro Food Group Foodservice - Sligro Belgium      

  38. Slide 38: Outlook

    Stiste) Sligro Food Group NV. Outlook 37

  39. Slide 39: Outlook

    Stiste) Sligro Food Group NV. No definite forecasts for full-year results Recovery continuing in both market segments In the short term, further integration costs and start-up costs for Sligro Belgium Start of construction for Sligro outlet in Antwerp Choices to be made for retail operations Complet

  40. Slide 40: Keep building the future!

    oo Pt | ane nD keep HiME building THE FUTURE!

  41. Slide 41: Annexes

    Stiste) Sligro Food Group NV. Annexes 40

  42. Slide 42: Profit and loss account

    Stiste) Sligro Food Group NV. amounts *€ million H1-2017 _H1-2016 _ change _H1-2017 _H1-2016 Net sales 1,435 1,355 5.9% 100.0% 100.0% Gross margin 331 308 74% 23.1% 22.8% Other operating income 7 1 466.7% 0.5% 0.1% Expenses -264 -243 8.6% -18.3% -17.9% EBITDA 74 66 10.8% 5.2% 4.9% Impairments -3 - -

  43. Slide 43: Balance sheet

    Stiste) Sligro Food Group NV. amounts *€ million 1-7-2017 2-7-2016 1-7-2017 _ 2-7-2016 Non-current assets Shareholders' equity 621 603 Intangible assets 261 228 Property, plant and equipment 378 341 Provisions 38 35 Investment property 19 19 Financial assets 64 71 ~Long-term borrowings 98 168 722 65

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Sligro Food Group — H1 2017 Earnings Presentation on 6ix