Sligro Food Group N.v. · EURONEXT:SLIGR
Sligro Food — H1 2021 Earnings Presentation
34 slides from Sligro Food's earnings presentation, Jul 22, 2021
Slide 1: 2021 half-year figures
2021 half-year figures 22 July 2021
Slide 2: Agenda
Agenda • Welcome Koen Slippens • 2021 half-year figures Rob van der Sluijs • Developments in the Netherlands Koen Slippens • Developments in Belgium Koen Slippens • Developments in the Group Koen Slippens • Outlook Koen Slippens 2
Slide 3: Abridged statement of profit or loss
Abridged statement of profit or loss 1 Net sales • After a decline in Q1, return to growth in Q2 vs 2020. • Decrease vs pre-COVID: - Q1: -43%; - Q2: -24%. • Major differences between segments. • Cash-and-carry/delivery service ratio: 47/53 (2020: 41/59). • 2020: 11 weeks of lockdown & 13 weeks of pr
Slide 4: COVID-19 impact on net sales in the Netherlands
COVID-19 impact on net sales in the Netherlands 1 Cash-and-carry sites in the Netherlands Weekly development in net sales compared to previous years (x € million) 2021 2020 2019 1st quarter 2nd quarter Delivery service sites in the Netherlands Weekly development in net sales compared to previous yea
Slide 5: COVID-19 impact on net sales in Belgium
COVID-19 impact on net sales in Belgium 1 Belgium Cash-and-Carry & Delivery Service Weekly development in net sales compared to previous years (x € million) 2021 2020 2019 1st quarter 2nd quarter 5
Slide 6: Gross margin
Gross margin 1 • With similar mix effects in the customer segments last year. • Continued relatively high tobacco share and low net sales from services have reduced the gross profit margin. • Gap increased as percentage of net sales, thus decreasing gross profit margin by approx. 0.1%. • Different r
Slide 7: Other operating income
Other operating income 1 • Book profit of almost € 4 million thanks to sale of former Van Hoeckel site in ‘s-Hertogenbosch. • Book profit last year of € 3 million: - Sale and leaseback of Drachten € 1 million; - Sale of part of the building in Amersfoort € 1 million; - Other sales € 1 million. 7
Slide 8: Operating costs
Operating costs 1 Employees: • Limited deployment of flexible staff; • Vacancies filled only to a limited degree; • Use of NOW wage subsidy scheme2 in the Netherlands € 28 million; • Use of TWO wage subsidy scheme3 in Belgium € 2 million. Sales: • Release from provision for doubtful debts and lower
Slide 9: Depreciation, amortisation and impairment
Depreciation, amortisation and impairment 1 • Decline in depreciation due to investment restrictions. • One-off non-cash impairment in Belgium last year. 9
Slide 10: Financial income and expenses and income tax
Financial income and expenses and income tax 1 Financial income and expenses: • Profit from participations grew by €2 million. Income taxes: • Corporate income tax gain in the first half of 2021 was € 2 million. • Corporate income tax gain from the final return for 2020: € 1 million. • Agreement rea
Slide 11: Abridged statement of cash flows
Abridged statement of cash flows 1 • Higher cash flow from business operations due to better operating result and reduction of working capital. • Position of deferred tax payments (Q4-2020) due to COVID-19 € 34 million: - Repayments planned in Q3 2021. • Investments: - CAPEX limited where possible;
Slide 12: Segment cash flows
Sligro Food Group NY. Netherlands Belgium Group x€ million H1-2021 H1-2020 H1-2021 H1-2020 H1-2021 H1-2020 Net cash flow from business operations 56 16 1 3 57 19 Interest received and paid (1) (3) 0) 0 (1) (3) Dividends received from participations 3 0) 3 0 Income tax received and paid 2 1 0 1 2 Net
Slide 13: Segment figures
Sligro Food Group NY. Netherlands Belgium Group x€ million H1-2021 H1-2020-H1-2021-H1-2020.-H1-2021_—-H1-2020 Net sales 719 858 69 85 788 943 Gross margin as % of net sales 23.9 23.4 25.3 23.1 24.0 23.4 Gross operating result (EBITDA) 38 30 (3) (3) 35 27 Operating profit before amortisation (EBITA)
Slide 14: Financing
Financing 1 • Free cash flow used to reduce debt position. • Stayed within original financing covenants thanks to interventions in expenses and investments as at end of June: Net interest-bearing debts/EBITDA = 2.2. • Covenant with respect to net interest-bearing debts/EBITDA (excluding IFRS 16) bro
Slide 15: Net profits and earnings per share
Net profits and earnings per share 1 • Net loss improved (even when excluding impairment in 2020), but still loss-making. • NOW support received in Q1 and Q2, so no bonuses and dividend in 2021. • The focus on recovery of the financial position has paid off. 15
Slide 16: Developments in the Netherlands
Developments in the Netherlands
Slide 17: General economic developments in the Netherlands
General economic developments in the Netherlands • Consumer confidence and unemployment rate almost back at pre-COVID-19 levels. • ‘Hidden’ unemployment is the uncertain factor. • Again some uncertainty, but no far-reaching restrictions with a major impact on our business expected. 17
Slide 18: Developments in the Netherlands
Developments in the Netherlands • Sales markets suffering from consequences of strict lockdown until mid-May. • Strong recovery in June as a result of the easing of the measures. • Ongoing efforts to reduce costs and cash. • Focused choices made amongst High Five ambitions. • Large proportion of Hei
Slide 19: Delivery service customer satisfaction: one order, one delivery, one invoice
Delivery service customer satisfaction One order, one delivery, one invoice live! Final situation for customers Product range Sales & Service Ordering Delivery Invoice Complete food & drink Heineken for Beer & One order for the whole One complete delivery One invoice from range. Cider and Sligro for
Slide 20: Cash-and-carry customer satisfaction
Cash-and-carry customer satisfaction • Improvements made to product choice. Offline and online complement each other • Cash-and-carry continues to grow, even without non-cardholders access. Offline Online • Restarted conversion to 3.0: Network analysis Digital in-store Downsizing to 5,000m² Long tai
Slide 21: Returns in the delivery segment
Returns in the delivery segment • Impact of long lockdown especially noticeable in delivery. • A lot of focus on preparing to start back up. • Shortage of DC staff and drivers covered at a regional level on restart. • Benefit from long-term partnerships and being a good employer. • Huge recovery put
Slide 22: Developments in Belgium
Developments in Belgium
Slide 23: General economic developments in Belgium
General economic developments in Belgium • Strong recovery of consumer confidence as in the Netherlands. • No reduction in unemployment unlike in the Netherlands. • Belgium has opted for a more gradual reduction of restrictions in contrast to the Netherlands. 23
Slide 24: Developments in Belgium
Developments in Belgium • Strong drop in delivery sales; substantial increase in cash-and-carry. • Product range harmonised to allow a greater part of Belgium's supply to run through the central distribution centre in Veghel: - Improved procurement position (synergies); - Efficiency gains in the sup
Slide 25: Network of sites
Network of sites Already completed in 2021 • Optimisation of Sligro-ISPC store in Antwerp (Q1). • Dismantling of Océan Marée (Q2). Scheduled for 2021 • Preparations for Ghent delivery service site and Leuven cash-and-carry store. Antwerp cash-and-carry store 25
Slide 26: Developments in the Group
fa ht — SEES Tg Developments in the Group
Slide 27: SAP launch
SAP launch • New article master data environment launched in Q1. • New ERP landscape in Belgium not implemented before the summer as was intended: - Complexity of integral upgrading of IT infrastructure; - Restrictions in making progress due to lockdown. • Implementation of new ERP landscape now pla
Slide 28: A happy, committed and professionally strong team
A happy, committed and professionally strong team A lot was done behind the scenes last year and has now been brought into the organisation: • Formulated purpose (SFG Compass) and updated core values. Core values are now loaded into the organisation step by step. • Leadership & People Management Pro
Slide 29: Outlook
Outlook
Slide 30: Outlook
Outlook Market conditions • Despite recent increases in the number of infections, no large-scale reintroduction of restrictions is expected. • Recovery is expected in the various customer segments over the course of the second half of the year: - Uncertainty as yet around the business catering, even
Slide 31: Slide 31
Slide 32: Abridged statement of financial position
Abridged statement of financial position 1 32
Slide 33: EBITDA for ratio calculation
EBITDA for ratio calculation 1 • EBITDA reported from 2019 including IFRS 16. • Financing based on Net Debt/EBITDA ratio not including IFRS 16. • Not including IFRS 16 paints a better picture of the cash position. 35 23 33
Slide 34: Jumbo Coop claim
Jumbo Coop claim • On 13 March 2020, Sligro learnt of a writ of summons issued by the Jumbo & Coop consortium, resulting from the transaction concerning the sale of EMTÉ in 2018. • The consortium alleges that in the context of this transaction, an incorrect picture had been painted of EMTÉ’s histori