Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Debt Investor Presentation (March 2021)
40 slides from Casino, Guichard-perrachon Sa's debt investor presentation, Mar 29, 2021
Slide 1: Investor Presentation – March 2021
2021 Investor Presentation - March 2021 Investor Presentation / March 2021
Slide 2: 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 forecasts and estimates and their underlying assumptions, statements regarding plans, objectives
Slide 3: Transaction overview
Transaction overview Investor Presentation / March 2021
Slide 4: Strategic refinancing…
Strategic refinancing… Aim Pro-active management of Casino debt maturity profile Reduce average cost of funding Pursue rebalancing towards unsecured debt Proposed transaction Taking advantage of strong market conditions, Casino intends to raise €1,225m in long-term debt across: €800m new Term
Slide 5: … to further optimize Casino's capital structure
… to further optimize Casino’s capital structure France Retail & E-commerce maturity schedule pro forma for proposed transaction In €m 1225 800 800 611 457 314 271 370 400 508 425 118 Segregated 2021 2022 2023 Jan Mar-24 Feb Aug-25 Jan Aug-26 Apr-27 accounts Segregated account EMTNs SSNs Refinanced
Slide 6: Transaction overview
Transaction overview Sources and Uses Sources Amount (€m) Uses Amount (€m) New Term Loan B 800 Repayment of existing Term Loan B (incl. prepayment premium) 1,237 New senior unsecured debt 425 Estimated fees and expenses 6 Cash on balance sheet 18 Total sources 1,243 Total uses 1,243 Pro forma capita
Slide 7: Summary pro forma financing structure
Summary pro forma financing structure Legend Free Float Rallye France Retail & E-Commerce as per RCF covenant definition Latam 48% 52% Restricted Group Economic rights % New senior unsecured debt: Existing Unsecured €425m EMTN programme Existing Casino Guichard- €2bn RCF Perrachon (CGP) €400m Senior
Slide 8: Term Loan B – Indicative terms
Term Loan B – Indicative terms Borrower » Casino, Guichard-Perrachon (“CGP”) Guarantors » Distribution Casino France; Casino Finance; Monoprix; Segisor Amount » €800,000,000 Currency » EUR Maturity » August 2025 Margin » [•] bps Floor » 0.0% OID » [•] Repayment » At maturity » Corporate: B (S&P) / B
Slide 9: Indicative timetable for Term Loan B
Indicative timetable for Term Loan B March 2021 April 2021 M T W T F S S M T W T F S S 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 29 30 December Key date Event 22nd March Transaction l
Slide 10: Company overview
Company overview Investor Presentation / March 2021
Slide 11: Casino at a glance
Casino at a glance Key business highlights Omni-channel offering • Multi-format, multi-banner and multi-channel retailer • Traditional food retail • Over 120 years of history • E-commerce food retail • Primary focus on France and Latin America food retail • E-commerce non-food retail • Leverages its
Slide 12: Key highlights
A leader in French and Latam food retail, with high-growth e- commerce operations France Retail Latin America E-commerce Food retail and food e-commerce Brazil food retail Cdiscount • Leading French food retail player, operating • €1.6bn stake4,5 in Brazil’s listed • A Leading non-food 7,634 stores¹
Slide 13: Highly experienced top and divisional management
Highly experienced top and divisional management Highly experienced Group management… Jean-Charles Naouri Julien Lagubeau David Lubek Arnaud Strasser Franck-Philippe Chairman and CEO Deputy CEO CFO Executive Director, Georgin Corporate Development General Secretary and Holdings … and deep bench of t
Slide 14: Key Credit Highlights
Key Credit Highlights Investor Presentation / March 2021
Slide 15: Key credit strengths
Key credit strengths Leading position in the French food retail market through structurally well- 1 positioned formats, attractive consumer offering, and digitalisation 2 Best-in-class food and non-food E-commerce platform 3 Track-record of growth and value creation from new businesses 4 High-growth
Slide 16: Leading market position with exposure to dynamic regions in attractive food retail format
Leading market position with exposure to 11 dynamic regions in attractive food retail format Leading food retailer in France with 69% of sales generated in the fastest growing regions 7,634 stores1 within a diversified portfolio Île-de-France, Rhône-Alpes, Côte d’Azur generated 49% of Leading
Slide 17: Strategic focus on a portfolio of buoyant formats and banners
1 Strategic focus on a portfolio of buoyant formats and banners Strategic repositioning on premium & convenience formats and organic products #2 in Convenience in France with increasing sales contribution France Retail % net sales by format Convenience & premium store Strong network of premium and
Slide 18: Acceleration of digitalisation across all banners
1 Acceleration of digitalisation across all banners Continued digitalisation roll-out across all banners accelerated in a Covid-19 environment Increased autonomous stores… Progress in use of digital solutions… +228 autonomous stores Le 4 Casino, 1st 24/7 cashier-less store in France Holders of t
Slide 19: Best-in-class food e-commerce platform
2 Best-in-class food e-commerce platform Disruptive grocery delivery partnerships reaping the benefit of increasing in-home consumption Strategic partnership between Monoprix, Strategic partnership with Ocado and Casino Monoprix Profitable food e-commerce model with lower The first and only food
Slide 20: National champion in non-food e-commerce with attractive growth levers
National champion in non-food e-commerce with attractive 2 growth levers – 2nd largest e-commerce player in France 26.2m1 monthly unique website visitors Top 10 internet retailing company shares as % value (2019)3 10.3m active customers in 2020 22.2% FY-2020 GMV above €4.2bn, up 8.6%2 vs. 2019
Slide 21: Track-record of strong growth and value creation from new businesses
Track-record of strong growth and value creation from new 3 businesses Capitalising on the Group energy management experience and the green energy momentum A leading player in photovoltaic auto-consumption and energy savings Strong increase in pipeline A leading solar decentralized power produce
Slide 22: Track-record of strong growth and value creation from new businesses
Track-record of strong growth and value creation from new 3 businesses Leveraging our customer data to create additional value #5 Advertising platform1 New player in the Data Center market with 27,0002 computing cores Monetization of the data for the Group banners New second fully-operative
Slide 23: Continuous simplification of our Latam assets to increase strategic focus and enhance valuation
Continuous simplification of our Latam assets to increase 4 strategic focus and enhance valuation Assai spin-off approved on 31 December 20201, allowing greater agility Group’s Latam structure The transaction enables Assaí, on the one hand, and GPA and Éxito, on the other, After spin off to focus
Slide 24: Leading the way in ESG
5 Leading the way in ESG A long-lasting commitment to responsible consumption #1 European retailer for its ESG policy and commitments by Vigeo Eiris1 Only retailer in the Wall Street Journal top 100 World Most Sustainably Managed Companies Top score obtained from leading ESG agencies… ESG scores
Slide 25: Demonstrated ability to deliver on the disposals asset plan
6 Demonstrated ability to deliver on the disposals asset plan Disposals summary Cumulated amount Disposal Timeline achieved within each Assets sale plan amount plan Thailand and Vietnam €4.0bn 2016 €4.0bn Strong capital gains Non-core assets €213m from 15% stake of Mercialys 2018 €1.1bn
Slide 26: Valuable asset base
6 Valuable asset base % Store network Assets FY-2020 metrics interest as of 31 Dec-20 Hypermarkets (o/w ) 100% 105 Sales: €3.8bn (o/w €3.6bn for Géant) (incl. ) 100% 799 Sales: €4.5bn 100% 872 Sales: €1.6bn Supermarkets (o/w ) 100% 419 Sales: €3.1bn (o/w €2.9bn for Casino Supermarkets) Convenience &
Slide 27: Proven range of initiatives to further support free cash flow generation and deleveraging
Proven range of initiatives to further support free cash flow 6 generation and deleveraging Several levers driving improvement in FCF and deleveraging in France Growth in Post IFRS 16 EBITDA (€m) and margin1 (%) Recurring savings from transformation plan: in France Retail + E-commerce +€60m in H2-
Slide 28: Track-record of debt reduction and strong focus on de-leveraging in France
Track-record of debt reduction and strong focus on 6 de-leveraging in France Reduction in gross debt providing ample headroom under RCF covenants Gross debt and GPA TRS and Forward evolution (in €bn) RCF covenants1,2 levels Lowest level 7.75x 7.6 in 20 years 7.50x 6.8 7.25x 6.6 6.3 5.8 4.8 6.50x 6.7
Slide 29: Outlook for 2021 – France
6 Outlook for 2021 – France » Continued focus on profitability improvements, continuing the trend established in H2 2020 » Having completed its refocusing on buoyant formats, the Group is now giving priority to growth Expansion in the urban, semi-urban and rural convenience formats (100 stores to be
Slide 30: Historical financials
Historical financials Investor Presentation / March 2021
Slide 31: Key figures
Key figures H2 H2 Change FY FY Change In €m Change Change 2019 2020 at CER 2019 2020 at CER Net sales Group 17,803 15,7732 -11% +7%1 34,645 31,9122 -8% +8%1 o/w France (incl. Cdiscount) 9,354 8,509 -9% +0%1 18,288 17,256 -6% +3%1 o/w Latam 8,449 7,264 2 -14% +13%1 16,358 14,6562 -10% +12%1 EBITDA Gr
Slide 32: France: strong growth in profitability, with EBITDA (after lease payments) up +12.8% in H2
France: strong growth in profitability, with EBITDA (after lease payments) up +12.8% in H2 H2 In €m – France (incl. Cdiscount) H2 2020 Change 2019 2020 Change 2019 Consolidated net sales 9,354 8,509 +0.2%1 18,288 17,256 +3.2%1 EBITDA 921 977 +6.1% 1,536 1,580 +2.9% EBITDA margin (%) 9.8% 11.5% +164
Slide 33: France Retail banners: EBITDA margin at a satisfactory level of 12% in H2
France Retail banners: EBITDA margin at a satisfactory level of 12% in H2 In €m – France Retail H2 2019 H2 2020 Change 2019 2020 Change 1 Net sales 8,276 7,419 -0.1% 16,322 15,219 +3.0%1 EBITDA 866 891 +3.3% 1,467 1,451 -1.1% EBITDA margin (%) 10.5% 12.0% +155 bps 9.0% 9.5% +55 bps France Retail EBI
Slide 34: Cdiscount: marketplace acceleration, EBITDA margin up +278 bps in H2
Cdiscount: marketplace acceleration, EBITDA margin up +278 bps in H2 H2 In €m – E-commerce (Cdiscount) H2 2020 Change 2019 2020 Change 2019 Gross merchandise volume (GMV) 2,146 2,261 +5.4%1 3,899 4,207 +8.6%1 o/w marketplace 679 832 +22.6% 1,237 1,505 +21.6% Net sales 1,077 1,089 +1.1%1 1,966 2,037
Slide 35: Free cash flow – France: +30%
Free cash flow – France: +30% Free cash flow In €m – continuing operations (France Retail + Cdiscount) 2019 2020 Change EBITDA 1,536 1,580 +45 (-) lease payments1 (637) (634) +3 EBITDA after lease payments 898 946 +48 Effect of reduced dividend (-) non-recurring items (excl. Rocade plan) (221) (196)
Slide 36: Reduction in net debt in France: €566m
Reduction in net debt in France: €566m In €m – France + Cdiscount 2019 2020 France: net debt excl. IFRS 5 at 1 January (4,026) (4,069) Free cash flow1 221 288 before asset disposals, disposal plan and Rocade plan Financial expenses2 (207) (328) o/w c. €40m Dividends paid to owners of the parent and
Slide 37: Impact of the health crisis
Impact of the health crisis » In H1 2020 we experienced a strong positive impact on France Retail net sales leading to an additional €80 million margin in the first half of 2020. This increase, however, was more than offset by €130 million temporary additional costs related to maintaining our operat
Slide 38: Latam: excellent performances, EBITDA up +58% in H2
Latam: excellent performances, EBITDA up +58% in H2 Change at Change at In €m H2 2019 H2 2020 CER 2019 2020 Change CER Consolidated net sales 8,449 7,264 +12.6%1 16,358 14,656 -10.4% +11.6%1 o/w Multivarejo 3,043 2,338 +10.1%1 5,998 4,924 -17.9% +11.4%1 o/w Assaí 3,334 3,137 +18.7%1 6,293 6,095 -3.1
Slide 39: Reduction in consolidated net debt (before IFRS 5): €1bn
Reduction in consolidated net debt (before IFRS 5): €1bn 2019 2020 Net debt Net debt Net debt excl. Net debt excl. Net debt IFRS 5 IFRS 5 In €m after IFRS5 IFRS5 Change over the period IFRS5 after IFRS5 -318 France 2,505 1,564 4,069 (-566 incl. GPA TRS 3,751 703 3,048 settlement) o/w France Retail 2
Slide 40: Conclusion
Conclusion » Opportunistic refinancing with strong rationale Pro-active management of Casino debt maturity profile Reduce average cost of funding Pursue rebalancing towards unsecured debt » Strong operational performance Good positioning in France with premium and convenience formats Strong performa
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