Label'vie Sa · CSEMA:LBV
Label'vie Sa — H1 2024 Earnings Presentation
36 slides from Label'vie Sa's earnings presentation, October 2024
Slide 1: H1 2024 results Investor Presentation
H1 2024 results Investor Presentation October 2024
Slide 2: Investment Thesis & Strategy, Highlights, ESG, Outlook
Investment Thesis Highlights and ESG Highlights Outlook & Strategy key achievements H1 2024 2
Slide 3: Investment Thesis & Strategy
01 Investment Thesis & Strategy 3
Slide 4: Long runway of profitable growth ahead
Morocco’s Leading Food Retailer - Label Vie (LBV) LONG RUNWAY OF PROFITABLE GROWTH AHEAD 190 Stores H1 24a CAGR% 2014-23a 8.5% H1 2024a 953 Stores +10.7% Sales 9.3% EBITDA 2028e Growth 2028e 53% payout ratio 2023a 12% ROIC 2023a Conservative Balance Sheet 58% Dividend 16% ROIC 2.2x NET payout ratio
Slide 5: Four major levers of strategy
Accelerate multi-format, Innovating and transforming Guided by our strong and omni-channel expansion our core businesses corporate governance, social and environmental principles 4 MAJOR LEVERS Differentiation Process Strong human capital and Sound financial and innovation and digital transformation
Slide 6: Formats with high growth potential
2023 2028 Indicative retail Number of Store openings Openings Number of area (m²) stores 2024 - 2028 share stores 3 500 - 8 000 13 36 35 4,6% 49 3 500 - 8 000 12 6 0,8% 18 550 - 3 000 92 114 14,7% 206 300 - 500 43 228 29,4% 271 150 - 200 19 390 50,5% 409 179 953 774 openings Formats with high growth
Slide 7: Targets for 2028
7 bn MAD REAL ESTATE 80% financed by our free cash flow property CAPEX over 5 years porfolio Targets for 2028 Net Financial Income Dividend Gearing ROIC (in M MAD) Payout 53,1% 58% 44,4% 53% 16% 39,4 12% 1,2 2023 2028 2023 2028 2023 2028 2023 2028 7
Slide 8: Highlights and key achievements H1 2024
02 Highlights and key achievements H1 2024 8
Slide 9: Softer H1 GDP growth with uptick in unemployment
Softer H1 GDP growth with uptick in unemployment GDP growth Unemployment rate H1 2023 H1 2024 16,3% 16,7% 3,5% 13,1% 3,3% 12,4% 2,8% 2,9% 2,5% 2,5% 6,7% 5,7% Urban Rural National Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Source: HCP - Economic growth (trend) + Source: HCP – Q2 information note
Slide 10: Food prices stabilise but household confidence remains fragile
Food prices stabilise but household confidence remains fragile Inflation per month Consumer price index for food products 128,1 128,9 110,2 7,1 +16,2% +0,6% 5,1 +7,8% 1,0 H1 2022 H1 2023 H1 2024 H1 2 0 2 2 H1 2 0 2 3 H1 2 0 2 4 Inflation by month Change in the household confidence index Pre-Covid st
Slide 11: A strategy of expansion and customer proximity
A strategy of expansion Operational Excellence Strengthening and customer proximity ESG actions Opening of 11 new stores, and Actions to support customers' Evolution towards global expansion into a new city purchasing power standards Terramis OPCI sold 40% to third Opening of the 3rd logistics Stren
Slide 12: Opening of new stores in H1 2024
Opening of 11 new stores in H1 2024 By the end of 2023 H1 2024 Number of stores Retail area Number of stores Retail area Share (m²) (m²) % 13 65 714 14 69 214 26% 12 65 900 12 65 900 25% 135 123 853 141 127 203 48% 19 2 793 23 3 358 1% 179 258 260 190 265 675 100% 12
Slide 13: Opening of the capital of OPCI Terramis
Opening of the capital of OPCI Key figures of OPCI Terramis Terramis Sale of shares for an amount of MAD 473 million, representing 40% of the capital 1.8 bn MAD 1.2 bn MAD Institutionalization of the shareholder base with leading investors: CMR, Total assets Net CDG, Farah Al Maghreb, Al Ajial under
Slide 14: H1 2024 key figures
6,617 M MAD 265 675 m2 7,783 M MAD 588 M MAD 8,48% +2,0% +7 415 m2 +3,3% +5,1% +0,24% Sales Total surface area EBITDA Sales EBITDA margin 190 +11 shops Number of stores 304 M MAD 267 M MAD 34,36 M 228 MAD +1% +17% +5,7% -4% Customer visits Average basket EBIT Net income 14
Slide 15: Stabilisation of sales
Stabilisation of sales (Figures in M MAD) Group sales Breakdown of sales by activity H1 2024 Supermarkets +3,8% -2,9% * 38,3% 36,7% 6.472 37,3% 36,1% 6.430 Hyper Cash -0,6% H1 2023 +4,7% +3,4% * 26,6% Hypermarkets H1 2023 H1 2024 24,9% -4,4% -4,4% * Revenue stable compared with H1 2023, with a sligh
Slide 16: Supermarket and hypercash sales performance
Supermarket and hypercash sales performance Hypermarket Supermarket Atacadao Revenue : Revenue : Revenue : 1,650 M MAD 2,430 M MAD 2,536 M MAD Growth : Growth : Growth : -4,4% +3,8% +4,7% Contribution to revenue : Contribution to revenue : Contribution to revenue : 25%. 37% 38% Store network : Store
Slide 17: Business driven by new store openings
Business driven by new store openings (Figures in M MAD) 154 stores 22,6 M 37% + 10 new 130 561 m² +10,1% Of total revenue Network Area Visitor numbers Sales performance Carrefour Supermarkets 19 +3,83% 17 137 2.323 2.273 H1 2023 H1 2024 Existing stores Stores opened in H1 2023 Stores opened in H1 2
Slide 18: Decline in activity impacted by pressure on purchasing power
Decline in activity particularly impacted by pressure on purchasing power (Figures in M MAD) 8M 25% 12 stores + 65 900 m² -4% Of total revenue Network Area Visitor numbers Sales performance Hypermarkets 1.725 1.650 -4,35% H1 2023 H1 2024 18
Slide 19: Improved sales benefiting from private individuals' interest
Improved sales also benefiting from the interest of private individuals (Figures in M MAD) 13 stores 3,68 M 38% + 1 new + 69 214 m² +3,4% Of total revenue Network Area Visitor numbers Sales performance Hypercash 30 +4,66% 2.506 2.423 H1 2023 H1 2024 Existing stores Stores opened in H1 2023 Stores op
Slide 20: Stabilisation of like-for-like sales in line with forecasts
Stabilisation of like-for-like sales in line with forecasts (Figures in M MAD) Change in sales on a reported basis Like-for-like sales growth 6.472 6.430 6.489 6.617 +2% -0,6% H1 2023 H1 2024 H1 2023 H1 2024 Sales stable on a like-for-like basis and up 2% on a reported basis 20
Slide 21: Growing contribution of new openings to sales momentum
Growing contribution of new openings to sales momentum in 2024 (Figures in M MAD) Contribution of longstanding and new stores to overall sales evolution 127 M MAD 6 489 120 49 6 617 - 42 94% 38,5% -33% 155 stores 24 stores 11 stores Sales Existing stores Stores opened in 2023 Stores opened in 2024 S
Slide 22: Strong contribution from Hyper Cash and Supermarkets
Strong contribution from Hyper Cash and Supermarkets (Figures in M MAD) Contribution of formats to overall sales evolution 127 M MAD 6 4… 90 113 6 617 89% - 75 70% -59% Sales H1 2023 Supermarkets Hyper Cash Hypermarkets Sales H1 2024 Hypercash is the main contributor to sales growth, benefiting from
Slide 23: 55% of growth comes from the volume effect
55% of growth comes from the volume effect (Figures in M MAD) Sales evolution by effect 127 M MAD 6 489 71 57 6 617 55% 45% Sales H1 2023 Volume effect Price effect Sales H1 2024 Slower contribution from the price effect compared to the previous year (45% in H1 2024 vs. 65% in 2023). 55% of the grow
Slide 24: Contrasting performances across formats
Contrasting performances in supermarkets and hypermarkets, while Hyper Cash remains buoyed by volumes Sales evolution by effect and period Supermarkets Hypermarkets Hyper Cash 0,5% 4,3% 10,4% 5,4% 8,5% 5,9% 6,8% 0,8% 14,0% 3,1% 2,9% -0,2% 1,2% -3,1% 7,3% 7,9% 6,0% -6,4% -0,7% -4,8% -4,4% 2,3% -0,9%
Slide 25: Direct margins impacted by actions to support purchasing power
Direct margins impacted by actions to support purchasing power Direct margin as % of sales Sales of services as % of turnover Gross margin as % of sales 1.568 +5,8% 22,62% 852 12,29% +13,2% 730 716 10,76% -1,9% 10,33% 753 1.482 11,1% 21,86% H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 Decline in
Slide 26: Strong discipline in cost control
Strong discipline in cost control (Figures in M MAD) Evolution Expenses 980 14,14% 923 13,62% H1 2023 H1 2024 Value savings on operating expenses, primarily from variable items and efforts to control other fixed items in a specific context. Deterioration in the ratio due to delays in volumes 26
Slide 27: EBITDA up 5.1% vs. H1 2023
EBITDA up 5.1% vs. H1 2023 (Figures in M MAD) EBITDA performance From EBITDA H1 2023 to EBITDA H1 2024 588 99 8,48% - 14 +5,13% 588 559 - 57 559 8,25% EBITDA Service sales Direct margin Costs EBITDA H1 2023 H1 2024 H1 2023 H1 2024 27
Slide 28: Significant improvement in financial result
Significant improvement in financial result (Figures in M MAD) Evolution of the financial result Financial income Financial expenses 85 +120,7% 131 70 44 96 36 47 39 46 36 37 8 5 2 H1 2023 H1 2024 H1 2023 H1 2024 Dividendes Emprunt obligataire Pdts de placement/Cash out Terramis Dette Bancaire H1 20
Slide 29: Net income in line with forecasts
Net income in line with forecasts (Figures in M MAD) Net income 267 +17% 3,85% 228 3,36% H1 2023 H1 2024 29
Slide 30: Slight improvement in cash position
Slight improvement in cash position (Figures in M MAD) Increase in cash and cash Cash flow equivalents of MAD 56 million compared with the beginning of 169 2024, mainly due to the following factors: 135 48 1 260 Increase in borrowings of MAD 1 204 135 million, financing net -8 - 288 investment after
Slide 31: Financing structure, Actual 2023 vs Actual H1 2024
Actual 2023 Actual H1 2024 Variation vs 2023 IN K MAD Amount d of sales Amount d of sales Amount d of sales FR 814 807 21 1 111 345 29 296 538 8 Shareholders' equity 3 229 463 83 3 221 101 85 -8 362 1 Net income 523 797 266 977 266 977 Dividend distribution -250 000 -280 000 -280 000 Financing debt
Slide 32: Gearing, net debt, equity and CAPEX
Gearing Net debt 3,729 M MAD 53,8% Shareholders' equity CAPEX WCR in days 3,221 M MAD 579 MILLION 23 d Restated Terramis disposals 32
Slide 33: ESG Strategy & Highlights
03 ESG Strategy & Highlights 33
Slide 34: How? Deploying new sustainable ambitions
Defining and deploying our new sustainable ambitions, while enhancing performance across our various areas of commitment How ? Drawing up a materiality matrix to identify the priority sustainability issues for Group LabelVie, taking into account both financial and non- financial perspectives, as wel
Slide 35: Outlook
04 Outlook 35
Slide 36: Operational and financial targets for 2024 remain on track
Operational and financial targets for 2024 remain on track H2 2024 will see an acceleration in store openings, with +55 new stores (across all formats) and expansion into new cities such as Kalaat Sraghena and Taourirt. Since July 1st, 2024, 7 new stores have been opened 36