Sligro Food Group N.v. · EURONEXT:SLIGR
Sligro Food — FY2019 Earnings Presentation
41 slides from Sligro Food's earnings presentation, Jan 23, 2020
Slide 1: 2019 annual figures
2019 annual figures Amsterdam, 23 January 2020
Slide 2: Agenda
Agenda • Welcome Koen Slippens • 2019 annual figures Rob van der Sluijs • Developments in the Netherlands Koen Slippens • Developments in Belgium Koen Slippens • Outlook Rob van der Sluijs 2
Slide 3: Abridged statement of profit or loss
Abridged statement of profit or loss 1,2 Netherlands • De Kweker contributed €70 million (7 out of 13 periods). • Loss in net sales wine and beverage. • Organic growth came in at -1.4%. Belgium • Limited net sales transfer from the Netherlands. • Fully organic net sales growth. Group • Cash-and-carr
Slide 4: Gross margin
Gross margin 1,2 Netherlands • Effect of De Kweker consolidation and integration accounts for most of the increase in € and %. (Purchasing integration and De Kweker has relatively little tobacco and mostly proprietary fresh produce departments) • Better promo margin. • Data valorisation contributes
Slide 5: Other operating income
Other operating income 1,2 • Temporary letting of Putten & Vleescentrale €1 million non-recurring income. • Book profit on sale of Maison Niels de Veye. • Book profit on sale of (soon-to-be) unused property €3 million. • EMTÉ service fee (TSA) of €5 million (2018: €8 million). • Deventer site sale a
Slide 6: Operating costs, depreciation and amortisation
Operating costs, depreciation and amortisation 1,2 • De Kweker consolidation led to increase in costs, one-off acquisition and integration costs €3 million. • Sligro-Heineken integration phase, still plenty of efficiency gains to be had. • Impact of overheads on food service (see next slide). • Temp
Slide 7: Central costs
Central costs 1,2 • Foodretail costs approx. €19 million per year. • Phase-out of central head office approx. 200 FTEs. Ultimate annual saving of approx. €12 million. • Loss of procurement synergies with Foodretail and loss of income from EMTÉ service fee (TSA). • ‘Variable’ part of costs removed by
Slide 8: IT costs
IT costs 1,2 • Programme on schedule. • First implementation in 2020 in Belgium. • Creation of new support organisation. • Legacy IT phased out where possible, but parts still operational. • CAPEX to be amortised in 7 years: - Entered as assets upon commissioning; - Phased commissioning; - Depreciat
Slide 9: Impact of IFRS 16
Impact of IFRS 16 1,2 • Lease expenses recognised as depreciation and interest costs from 2019. • IFRS 16 led to improvement in EBITDA, EBITA and EBIT. 9
Slide 10: Financing income and expenses, participations and income tax
Financing income and expenses, participations and income tax 1,2 Financing income and expenses • Financing expenses up €3 million due to IFRS 16. Participations • Results from participations down due to sale of EMTÉ and start-up in Belgium. Income taxes • Income from 2018 in 2019 of €2 million. • Ch
Slide 11: Operating profit
Operating profit 1,2 • Decrease operating profit mainly explained by: - Start-up losses Belgium € 10 million - Lower net sales Netherlands € 2 million - Increase logistic costs € 4 million - Increase IT costs € 7 million - Investment network of sites € 3 million - Inefficiency (pre) integration PM •
Slide 12: Net profits and earnings per share
Net profits and earnings per share 1,2 Net profit • Discontinued operations: - 2018: Foodretail; - 2019: Vroegop AGF. Earnings per share • Dividend of €1.40 per share proposed for 2019. • Sustainable for the future: dividend based on profit and development cash flow. 12
Slide 13: Abridged statement of cash flows
Abridged statement of cash flows 1,2 • Shift of €18 million from operating to financing cash flow (IFRS 16). • Calendar effect of VAT, excise duties and income tax and social security contributions of approx. €20 million in the plus in 2019 (will reverse in 2020). • Operating capital reduction conti
Slide 14: Segment figures
Segment figures? Sligro Food Group NV. Netherlands Belgium Group x € million 2019 2018 2019 2018 2019 2018 Net sales? 2,166 2,126 229 220 2,395 2,346 Gross margin as % of net sales 24.6 24.2 22.2 23.9 24.4 24.1 Gross operating profit (EBITDA) 130 111 (3) 3 127 114 Operating profit before amortisatio
Slide 15: Segment cash flows
Segment cash flows?” Sligro Food Group NV. Netherlands Belgium Group x € million 2019 2018 2019 2018 2019 2018 Net cash flow from business operations 163 52 (28) 23 135 75 Interest received and paid (7) (3) (0) - (7) (3) Dividends received from participations 5 7 : - 5 7 Income tax paid 0 (33) (1) (
Slide 16: Developments in the Netherlands
Developments in the Netherlands
Slide 17: General economic development in the Netherlands
General economic development in the Netherlands • The drop in both consumer confidence and unemployment are levelling out. UPDATEN • Current trend indicates stablilisation. 17
Slide 18: Food Service market development in the Netherlands
Food Service market development in the Netherlands • Estimation by FSIN: consumer spending in food service market up 4.3% on 2018. Growth comes largely on the back of rising prices, including VAT increase. • Estimation by FSIN on food service market in wholesale prices: - Total market +2.4%; - Whole
Slide 19: Developments in the Netherlands
Developments in the Netherlands • Increasingly difficult to differentiate between supermarkets and food service wholesalers in the market. • Declining market growth, with slightly lower volumes and considerable cost inflation. • Strategic programmes and projects (Heineken, IT, Next-gen cash-and-carr
Slide 20: 'Next-gen cash-and-carry store' with a balance between 'physical' and 'digital'
‘Next-gen cash-and-carry store’ with a balance between ‘physical’ and ‘digital’ 20
Slide 21: Omnichannel: Sligro is there for you…anytime and anywhere…
Omnichannel: Sligro is there for you…anytime and anywhere… Touchpoints that allow us to increase traffic, conversion and loyalty 21
Slide 22: Hybrid ordering, pick-up and delivery options
Hybrid ordering, pick-up and delivery options 22
Slide 23: Heineken partnership
Heineken partnership A look back at 2019 • Technical and physical infrastructure delivered which was a requirement for integration. • First 3 former Heineken wholesale sites closed: Rotterdam, Hulst and Deventer. • Building integration completed without inconveniencing customers. Phase after buildin
Slide 24: Heineken partnership: building integration timetable
Heineken partnership: building integration timetable 4 6 3 1 9 5 2 8 7 24
Slide 25: De Kweker acquisition
De Kweker acquisition Acquisition • Acquisition of Wheere (parent company of De Kweker) completed in June. • Debt-free purchase price amounted to €52 million (property acquired as part of the deal has a value of approx. €19 million). • De Kweker contributed €70 million to net sales in 2019. Integrat
Slide 26: Network of sites: cash-and-carry stores
Network of sites: cash-and-carry stores Sligro 3.0 stores opened in 2019 • Apeldoorn (type I, April) • Leiden (type III, July) • Deventer (type I, September) • Hilversum (type III, November) Scheduled for 2020 • Heerlen (type III, 2nd quarter) • Arnhem (type III, 4th quarter) 26
Slide 27: Network of sites: delivery service & head office
Network of sites: delivery service & head office New sites opened in 2019 • Deventer (October) • Drachten (December) • Amsterdam (December) Refurbishments in 2019 • Head office (October) Scheduled for 2020 • Maastricht (1st quarter) • Breda (2nd quarter) • Vianen (3rd quarter) 27
Slide 28: Plans for 2020: Give me five!
Plans for 2020: Give me five! 1. To excel in customer satisfaction in the delivery segment ▪ On time, in full, with the correct invoice and with a smile. ▪ Heineken integration: 1 order, 1 truck, 1 invoice. ▪ Digital transformation: new (SAP-based) online store, Customer Solutions platform. ▪ Sustai
Slide 29: Plans for 2020: Give me five!
Plans for 2020: Give me five! 4. Successful launch of SAP in Belgium and the Netherlands ▪ First end-to-end implementation in Belgium, with support from the Netherlands. ▪ International role from the Netherlands in transition to SAP. ▪ Ordering portals for delivery service in Netherlands and Belgium
Slide 30: Developments in Belgium
Developments in Belgium
Slide 31: General economic development in Belgium
General economic development in Belgium • The drop in both consumer confidence and unemployment are levelling out. • Current trend indicates stablilisation. 31
Slide 32: Food Service market development in Belgium
Food Service market development in Belgium • Growth of Sligro’s market share (fully organic). • Insight of Foodservice Alliance not yet consistent and frequent. • Market contracted by more than 3% over the Q1-Q3 period, but showed nearly 3% growth over the full year. Different definition of the mark
Slide 33: Developments in Belgium
Developments in Belgium • Sligro-ISPC in Antwerp: - Growing and gaining ground in the local area; - Synergies offer opportunities for operational support from Netherlands in 4th quarter. • Grew faster than the market and strengthened market position. • Adjustments and extensions to infrastructure in
Slide 34: Antwerp
Antwerp • Scheduled transfer from the Netherlands (€150 to €200K a week) moved to 2020. Supply Chain Belgium is being prepared to be able to handle this. • Growth primarily in delivery segment. • Still lots of gains to be had on an operational level, started in Q4 with help from the Netherlands. • L
Slide 35: Network of sites
Network of sites New sites opened in 2019 • Head office in Rotselaar (October). Scheduled for 2020 • Refurbishment of head office in Rotselaar. • Optimisation of Sligro-ISPC store in Antwerp. • Pragmatic format harmonisations at Sligro-ISPC Ghent and Liège. • Development of additional sites. 35
Slide 36: Plans for 2020 in Belgium: Give me five!
Plans for 2020 in Belgium: Give me five! 1. To excel in customer satisfaction in the delivery and cash-and-carry segments ▪ Further support from the BENE teams in the Netherlands in cash-and-carry and delivery service processes, for better alignment and to boost the quality of services and processes
Slide 37: Plans for 2020 in Belgium: Give me five!
Plans for 2020 in Belgium: Give me five! 5. Happy, committed, and professional strong team: ▪ Refining the organisational structure and allocation of roles, including cross-border roles. ▪ Further improvement of the quality of the organisation. ▪ A sense of calm across the organisation for SAP imple
Slide 38: Outlook
Outlook
Slide 39: Outlook
Outlook • Consumer trust and unemployment rate stabilise => our expectation: markets in 2020 comparable to 2019. • Growth in 2020 again driven by price, as volumes decline. • Inflation of energy and wage costs still considerable, inflation of logistics costs normalises. • Full focus on the ‘Give me
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Slide 41: Abridged statement of financial position
Abridged statement of financial position 1,2 41