Dino Polska Sa · GPW:DNP
Dino Polska Sa — Q1 2017 Earnings Presentation
23 slides from Dino Polska Sa's earnings presentation, May 24, 2017
Slide 1: Q1 2017 Financial results
Q1 2017 Financial results 24th May 2017
Slide 2: Disclaimer
Disclaimer Neither this presentation (the “Presentation”) nor any copy of it nor the information contained herein being issued, and nor may this Presentation nor any copy of it nor the information contained herein be distributed directly or indirectly to or into, the United States, Canada, Australia
Slide 3: Our achievements in 1Q 2017
Our achievements in 1Q 2017 +11 stores in 1Q 2017 +25% store pipeline y-o-y +13% LFL y-o-y +29% sales y-o-y +0.3pp gross margin y-o-y +29% EBITDA y-o-y 3
Slide 4: Supportive market conditions
Supportive market conditions Recovering inflation Improvement in consumer sentiment Inflation in Poland Consumer confidence index in Poland (100=long-term average) 105 102 104 101.6 103 103.1 102 101 102.0 101 100 99 100 98 97 96 95 99 Mar-14 Dec-14 Sep-15 Jun-16 Mar-17 Apr-14 Oct-14 Apr-15 Oct-15 A
Slide 5: Operational & financial highlights
Operational & financial highlights Number of stores (end of period) Sales dynamics (PLNm) EBITDA (PLNm) and margin 7.01% 8.12% 8.56% 7.50% 7.52% 639 628 3,370 2881 511 529 2,590 210 410 2,108 148 910 682 707 53 2014 2015 2016 1Q 2016 1Q 2017 2014 2015 2016 1Q 2016 1Q 2017 2014 2015 2016 1Q 2016 1Q 2
Slide 6: Delivering leading LFL growth
Delivering leading LFL growth Annual 2.6 4.3 3.7 0.9 0.0 (0.9) (0.9) 2.0 Inflation (deflation) % 18.0% 15.5% 16.6% 14.1% 14.0% 12.6% 11.3% 10.0% 7.5% 5.1% 6.0% 4.2% 5.4% 2.0% 4.3% 3.4% 2.7% 2.0% 0.8% (2.0%) (0.9%) (1.7%) 2010 2011 2012 2013 2014 2015 2016 1Q 2017 2010 2011 2012 2013 2014 2015 2016 1
Slide 7: Revenues
Revenues Dynamic revenues growth Sales mix Revenues growth Product split by revenue (1Q 2017) 27.4 22.8 30.1 28.7 (y-o-y, %) LFL growth (%) 4.2 5.1 10.3 12.6 Non-food 13% Fresh food Revenues (PLNm) 37% 3,370 2,590 2,108 Dry food, beverages, alcohol and tobacco 50% 910 707 2014 2015 2016 1Q 2016 1Q 2
Slide 8: Gross margin
Gross margin Steady increase in gross margin +0.9 p.p. +0.3 p.p. 22.6% 22.9% 22.6% 22.9% 22.0% 3,370 2,590 2,108 910 707 2014 2015 2016 1Q 2016 1Q 2017 Revenue, (PLNm) Gross margin, % Source: Company financial statements 8
Slide 9: EBITDA
EBITDA EBITDA growth EBITDA margins (PLNm) (%) 2881 8.12% 8.56%1 7.50% 7.52%2 7.01% 1.94% 210 65 1.94% 2.05% 2.11% 1.99% 148 50 42 6.62%1 2231 6.18% 5.02% 5.45% 5.41%2 160 682 53 106 19 14 39 492 2014 2015 2016 1Q 2016 1Q 2017 2014 2015 2016 1Q 2016 1Q 2017 EBIT D&A EBIT D&A Source: Company financia
Slide 10: Q1 2017 EBITDA bridge
Q1 2017 EBITDA bridge (PLNm) 7.50% 103 29 (37) 11 (6) 7.52% + PLN 15 million 19 3 4 1 1 14 11 68 53 49 49 49 39 (1) 1Q 2016 EBITDA 1Q 2016 D&A 1Q 2016 EBIT Δ Sales at a Δ Cost of sales Δ Sales & Δ G&A Δ Other operating 1Q 2017 EBIT 1Q 2017 D&A 1Q 2017 EBITDA constant margin marketing costs income /
Slide 11: Operating cash flow
Operating cash flow Capex OCF structure (PLNm) (PLNm) 134% 132% 133% 151% 98% 324 25 382 245 47 16 278 188 44 65 28 199 50 39 42 186 80 67 135 31 0 79 14 19 31 38 (24) 2014 2015 2016 1Q 2016 1Q 2017 (51) (2) (5) Capex Capex as % of EBITDA 2014 2015 2016 1Q 2016 1Q 2017 Profit before tax D&A Change i
Slide 12: Balance sheet
Balance sheet Net debt / EBITDA(1) Interest coverage ratio(2) 2.6x 7.3x 7.4x 6.4x 2.0x 1.9x 1.7x 4.0x 2014 2015 2016 1Q 2017 2014 2015 2016 1Q 2017 Source: Company financial statements (1) Net debt to EBITDA defined as net debt divided by EBITDA for the last twelve months (2) Interest coverage ratio
Slide 13: Store roll-out
Store roll-out +11 No. of newly opened stores Expanding pipeline +25.5% y-o-y 1Q 2017 389 338 310 280 +20% No. of purchased plots 197 268 1Q 2017 248 209 y-o-y 198 138 101 121 82 90 +28% No. of preliminary agreements 59 1Q 2017 Dec-14 Jan-00 Dec-15 Jan-00 Dec-16 Jan-00 Mar-16 Jan-00 Mar-17 Jan-00 y-
Slide 14: Store roll-out
Store roll-out Network expansion to date Regional coverage Net sales area (’000 m2) Stores per 100k inhabitants 20 25 32 50 81 119 151 192 238 243 No. of stores 628 639 511 410 324 234 154 111 81 90 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 2017 =0 ≤ 1.0 ≤ 3.0 ≤ 5.0 ≤ 7.0 Source: Company infor
Slide 15: Strategy update
Strategy update 1 Organic store roll-out Over 1,200 stores by the end of 2020 639 Stores(1) Q1'17 '17F '18F '19F '20F end'20F 2 LFL growth 3 Improving profitability 12.6% + 0.3 pp LFL growth in 1Q 2017 Gross margin improvement (vs 3.4% food inflation) in 1Q 2017 Source: Company information (1) As at
Slide 16: aajblizej Cieble
aajblizej Cieble 16
Slide 17: Company financial statements (1/5)
Company financial statements (1/5) Profit and loss statement (PLNm) 2014 2015 2016 1Q 2017(1) 1Q 2016(1) Y-o-y +/(-),% Sales 2,107,984 2,589,576 3,369,517 910,335 707,363 28.7% Cost of sales (1,644,080) (2,004,710) (2,599,005) (701,744) (547,725) 28.1% Gross profit 463,904 584,866 770,512 208,591 15
Slide 18: Company financial statements (2/5)
Company financial statements (2/5) Balance sheet (PLN '000) 2014 2015 2016 1Q 2017(1) 1Q 2016(1) Assets Property, plant and equipment 798,948 1,024,199 1,337,207 1,386,389 1,090,826 Intangible assets 90,700 92,253 93,072 92,510 91,952 Other non-financial assets (long 1,885 – – – – term) Deferred tax
Slide 19: Company financial statements (3/5)
Company financial statements (3/5) Balance sheet (PLN '000) 2014 2015 2016 1Q 2017(1) 1Q 2016(1) Interest-bearing loans, borrowings and finance lease 285,962 361,774 452,378 487,167 370,010 liabilities Other liabilities – – 300 270 – Provisions for employee benefits 533 758 1,115 1,115 758 Deferred
Slide 20: Company financial statements (4/5)
Company financial statements (4/5) Cash flow (PLN '000) 2014 2015 2016 1Q 2017(1) 1Q 2016(1) Cash CF operating activities Profit before tax 79,293 135,231 186,455 38,005 30,843 Adjustments for 109,185 110,163 137,868 (6,959) (36,334) Depreciation and amortization 41,880 50,177 65,202 19,176 14,492 G
Slide 21: Company financial statements (5/5)
Company financial statements (5/5) Cash flow (PLN '000) 2014 2015 2016 1Q 2017(1) 1Q 2016(1) Cash flows from investing activities Proceeds from sale of property, plant and 374 925 1,112 79 648 equipment and intangibles Purchase of property, plant and equipment (170,722) (243,487) (311,732) (82,976)
Slide 22: Contact information
Contact information Grzegorz Uraziński Head of Investor Relations grzegorz.urazinski@marketdino.pl +48 695 234 561 Ul. Ostrowska 122 63-700 Krotoszyn Poland http://grupadino.pl 22
Slide 23: dino
dino aajblizej Cieble 23