Slide 1: 2018 Results presentation
2018 Results presentation 6 November 2018
Slide 2: Disclaimer
Disclaimer This document has been prepared by Compañía de Distribución Integral Logista Holdings, S. A. (“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 of
Slide 3: Index
Index: Results Highlights Delivering on our objectives Business Review Financial Review Outlook 2018 Results presentation / 6 November 2018 / Page 3
Slide 4: 2018 Results Highlights
2018 Results Highlights A successful year despite tobacco price hikes in France o Strong performance across geographies and activities offsetting the impact on volume from significant tobacco price increases in France • Revenues decreasing by 0.2% to €9,476m • Economic Sales reached €1,118m, up by 6
Slide 5: Delivering on our objectives
Delivering on our objectives 2018 Results presentation / 6 November 2018 / Page 5
Slide 6: Delivering on our objectives: Four building blocks
Delivering on our objectives Four building blocks Strengthening while growing consolidated business base Expanding business base Our objective: Attractive returns to shareholders Improving efficiency Robust cash flow profile 2018 Results presentation / 6 November 2018 / Page 6
Slide 7: Strengthening/growing consolidated business base (actions)
Delivering on our objectives Strengthening/growing consolidated business base (actions) Maintaining leadership in tobacco (contracts renewal depends on expiry calendar): o British American Tobacco (Italy) Growing services: o NGP: distribution agreements for new clients and extending existing contrac
Slide 8: Expanding business base (actions)
Delivering on our objectives Expanding business base (actions) Boosting sales into existing pipeline (wholesale): o Multichannel ordering deployment and loyalty programs translated into continuous penetration and average ticket growth o Recruiting clients to expand sales in the petrol station channe
Slide 9: Improving efficiency (actions)
Delivering on our objectives Improving efficiency (actions) Vertical business model: o Continuing the externalisation of local service points in Spain o Warehouse capacity expansion of Pharma (incorporation of Sanofi’s activity) o Further optimization of network in Italy o Benefitting from previous
Slide 10: Robust cash flow profile
Delivering on our objectives Robust cash flow profile High average cash conversion: o Above previous fiscal year due to increase in results and larger negative working capital position at closing High pay out ratio: o Slightly more than 95% of Net Profit to be distributed as dividends Bi-annual divi
Slide 11: Another successful year: fulfilling expectations
Delivering on our objectives Another successful year: fulfilling expectations Consolidated business base performing Strengthening while growing strongly, boosted by the addition of new consolidated business base services in Italy and differentiation in transport Wholesale and Pharma Ec. Sales growin
Slide 12: Business Review
Business Review 2018 Results presentation / 6 November 2018 / Page 12
Slide 13: Diversification across geographies and activities
Business Review Diversification across geographies and activities Geographical Split Breakdown of activities: Ec. Sales 3 Eco. Sales: €1,118m 1 FY 2017: €1,050m 1 FY 2017: 1,050m 3 Other 11% Italy Transport 23% 22% Iberia Tobacco & France 51% Related 67% 26% Adj. EBIT: €246m 2 o Tobacco & Related in
Slide 14: Snapshot by segment
Business Review Snapshot by segment o Spanish economy suffered a slow down o Declining tobacco volume and lower RSP increase vs. FY2017 Revenues: €2,813m (+4.4%) o Convenience products growing again double-digit Iberia Ec. Sales: €561m (+5.2%) o Differentiation strategy in Transport is the winning b
Slide 15: Business Review: Iberia
Business Review Iberia o Declining tobacco volumes after RSP increase: • Cigarette: -1.6% vs. -2.6% Revenues: €2,402m • RYO: +1.8% vs. -2.8% (+3.3%) Tobacco and Related o RSP : +5 cents per pack vs. +10 cents per pack in 2017 Ec. Sales: €272m o Very good performance in Portugal, organic and small ac
Slide 16: Business Review: France
Business Review France o Elasticity < 1.00, tobacco volumes decline softer than expected • Cigarette: -8.0% vs. -2.7% Revenues: €3,840m • RYO: -8.6% vs. -5.4% (-5.2%) Tobacco and o Manufacturers passed-through practically the total amount of the tax increase Related to RSP (€1,35 cents) although not
Slide 17: Business Review: Italy
Business Review Italy o Better performance of tobacco volume compared to 2017: • Cigarettes: -2.5% vs. -6.1% • RYO: +19.7% vs. +12.6% Revenues: €2,688m o RSP +10 or +20 cents per pack in a constant taxation context (3.4%) Tobacco and Related o Net impact on the valuation of inventories positive vs.
Slide 18: Financial Review
Financial Review 2018 Results presentation / 6 November 2018 / Page 18
Slide 19: Financial Review: P&L Strong activity performance
Financial Review: P&L Strong activity performance (€m) 2018 2017 Δ% Revenues 9,476.5 9,493.2 (0.2)% o Revenues: practically stable o Economic Sales: Growth in Iberia, Italy and Eco. Sales 1,118.2 1,049.7 +6.5% convenience products distribution in France, (-) Distribution Costs (726.0) (685.9) (5.9)%
Slide 20: Financial Review: P&L Delivering Net Income growth
Financial Review: P&L Delivering Net Income growth despite one-off results in 2017 (€m) 2018 2017 Δ% Profit from operations 190.5 158.0 +20.6% (+) Financial Income 14.3 31.4 (54.5)% o Reduction of positive Financial Result, due to the capital gain derived from sale of an (-) Financial Expenses (1.6)
Slide 21: Financial Review: Treasury
Financial Review: Treasury Annual evolution of cash position 3,200 3,000 2,800 2,600 2,400 2,200 o Seasonality driving cash position to its 2,000 peak towards year end 1,800 1,600 o Dividend payments during FY2018: 1,400 1,200 • March 2018 (€99.3m) Final 2017 1,000 • August 2018 (c. €46.3m) Interim
Slide 22: Financial Review: Investments
Financial Review: Investments Investing in differentiation and high-quality services (€m) 2018 2017 Δ% IT investments (technology) 25.5 11.5 +122.0% o > 45% dedicated to technology Infrastructure 22.5 11.6 +94.1% o Infrastructure investments grew to ensure differentiation and to widen catalogue of s
Slide 23: Financial Review: Economic Free Cash Flow
Financial Review: Economic Free Cash Flow (€m) 2018 2017 Δ EBITDA 295 253 +42 o Significant increase of results, a negative Working Capital Variations and Others (13) (71) +58 working capital and the lower payments for the corporate tax resulted in a higher cash generated from activities Corporate I
Slide 24: Financial Review: Dividend Policy
Financial Review: Dividend Policy Flexibility to reflect activity performance o Directors will propose a dividend distribution for year ended September 2018 of c. €149 million • Interim dividend paid in August 2018 (€0.35 per share, c. €46.3m) • Final dividend per share: €0.77 (number of shares: 132
Slide 25: Financial Review: Conclusions
Financial Review: Conclusions o Highly resilient business model o Superior profitability with improving margins TSR 2018*:+14.1% o Robust Economic Cash Flow profile Absorbing a 10% stake placement in the end of o Attractive Dividend Pay-out profile July * Source: Bloomberg, from 30 September 2017 to
Slide 26: Outlook
Outlook 2018 Results presentation / 6 November 2018 / Page 26
Slide 27: Outlook 2019
Outlook 2019 Adj. EBIT expected to grow mid single digit o Current trading environment suggests a mid single digit Adjusted EBIT growth rate in FY2019 o Higher restructuring costs, depending on activity evolution in France Due to the significant reduction of the tobacco volumes distributed in Fran
Slide 28: Appendix
Appendix 2018 Results presentation / 6 November 2018 / Page 28
Slide 29: Tobacco Volumes Evolution
Tobacco Volumes Evolution Relatively good volume performance in all geographies Million units % Y-o-Y Change 1 Oct. 2017 – 30 1 Oct. 2016 – 30 1 Oct. 2015 – 30 1 Oct. 2017 – 30 1 Oct. 2016 – 30 Sept. 2018 Sept. 2017 Sept. 2016 Sept. 2018 Sept. 2017 TOTAL Cigarettes 155,821 161,646 168,300 (3.6)% (4.
Slide 30: Revenues Evolution
Revenues Evolution By segment and activity (€m) 2018 2017 Δ% Iberia 2,812.6 2,695.3 +4.4% Tobacco & Related 2,402.2 2,326.5 +3.3% Transport Services 366.2 341.1 +7.3% Other Businesses 141.8 121.9 16.4% Adjustments (97.6) (94.2) (3.6)% France 4,021.6 4,234.1 (5.0)% Tobacco & Related 3,840.1 4,049.9 (
Slide 31: Economic Sales Evolution
Economic Sales Evolution By segment and activity (€m) 2018 2017 Δ% Iberia 561.4 533.4 +5.2% Tobacco & Related 272.1 269.6 +0.9% Transport Services 253.0 236.1 +7.2% Other Businesses 84.2 72.3 +16.4% Adjustments (47.9) (44.6) (7.5)% France 264.2 273.6 (3.4)% Tobacco & Related 218.6 228.7 (4.4)% Other
Slide 32: Adjusted EBIT Evolution
Adjusted EBIT Evolution By segment (€m) 2018 2017 Δ% Iberia 114.2 104.8 +8.9% France 65.8 67.8 (3.1)% Italy 79.5 59.0 +34.7% Corporate & Others (13.6) (12.9) (5.4)% Total Adjusted EBIT 245.9 218.8 +12.4% 2018 Results presentation / 6 November 2018 / Page 32
Slide 33: Balance Sheet
Balance Sheet (€m) 2018 2017 PP&E and other Fixed Assets 221.5 206.0 Net Long Term Financial Assets 6.8 6.1 Net Goodwill 920.8 925.7 Other Intangible Assets 505.2 547.8 Deferred Tax Assets 18.6 19.9 Net Inventory 1,188.5 1,122.6 Net Receivables 1,939.3 1,791.0 Cash & Cash Equivalents 2,064.5 1,923.6
Slide 34: Alternative Performance Measures (1/6)
Alternative Performance Measures (1/6) o Economic Sales: equals Gross Profit and is used without distinction by the Management to refer to the figure resulting of subtracting Procurements to the Revenue figure. Management believes that gross profit is a meaningful measure of the fee revenue we gener
Slide 35: Alternative Performance Measures (2/6)
Alternative Performance Measures (2/6) o Adjusted Operating Profit (Adjusted EBIT): This item is calculated, fundamentally, discounting from the Operating Profit those costs that are not directly related to the revenue obtained by the Group in each period, facilitating the performance of Group’s the
Slide 36: Alternative Performance Measures (3/6)
Alternative Performance Measures (3/6) o Adjusted Operating Profit margin over Economic Sales: calculated as Adjusted Operating Profit divided by Economic Sales (or indistinctly, Gross Profit). This ratio is the main indicator used by the Group’s Managements to analysis and measure the performance o
Slide 37: Alternative Performance Measures (4/6)
Alternative Performance Measures (4/6) o Operating costs: this term is composed by the costs of logistics networks, commercial expenses, research expenses and head offices expenses that are directly related to the revenue obtained by the Group in each period. It is the main figure used by the Group’
Slide 38: Alternative Performance Measures (5/6)
Alternative Performance Measures (5/6) o Non-recurring expenses: refers those expenses that, although they might occur in more than one period, do not have a continuity in time (as opposed to operating expenses) and affect only the accounts in a specific moment. This magnitude helps the Group’s Mana
Slide 39: Alternative Performance Measures (6/6)
Alternative Performance Measures (6/6) o Restructuring costs: are the costs incurred by the Group to increase the operating, administrative or commercial efficiency in our company, including the costs related to the reorganization, dismissals and closes or transfers of warehouses or other facilities
Slide 40: 2018 Results presentation
2018 Results presentation 6 November 2018