DIA — Investor Day (2014)
34 slides from DIA's investor day presentation, 2014
Slide 1: Investor Day 2014
IN ESTOR IY, (4) DAY 2014
Slide 2: Strategic Review
STRATEGIC REVIEW Ricardo Currás CEO DIA Group
Slide 3: Consumers continue to prefer 2P food retailers: Price & Proximity
Consumers continue to prefer 2P food retailers: Price & Proximity Ageing Rising oil and population energy costs Less persons per Western Europe household & Consumers Increase are looking Emerging reduced space of urban population for storage for Proximity and Price Rise of middle Reduction of income
Slide 4: Food retail formats are converging towards 2P
Food retail formats are converging towards 2P Price Hard Low Discounters 2P Hypermarkets Supermarkets High Department Convenience stores Distance Attraction Proximity Retailers (hard discounter, supermarkets, convenience stores) are converging towards 2P Page 2
Slide 5: DIA today
DIA today 6 countries 2,991 franchises with 7,328 stores 45,368 employees 20,188 employees Iberia 27% 54% France 19% Emerging Markets €11.5bn sales We have the most densified store network in our core countries/regions with the most flexible operational model Data as of 31.12.2013 Page 3
Slide 6: 2010 – 2014: DIA has strengthened its presence in its core markets
2010 – 2014: DIA has strengthened its presence in its core markets 2010 France Greece Portugal China Spain Turkey Brazil Argentina Exit from Greece. 7 countries: Spain, Portugal, France, Turkey, Brazil, Argentina, China Page 4
Slide 7: 2010 – 2014: DIA has strengthened its presence in its core markets
2010 – 2014: DIA has strengthened its presence in its core markets 2012 France Portugal China Spain Turkey Brazil Argentina Spin off from Carrefour, entry in Madrid stock market (July 2011) Entry in Rio Grande do Sul in Brasil in 2011 (10 millions inhabitants). Entry in Salta & Jujuy in Argentina in
Slide 8: 2010 – 2014: DIA has strengthened its presence in its core markets
2010 – 2014: DIA has strengthened its presence in its core markets (Number of stores) 2014 IGD ranking of emerging food retail markets France # Countries (865) 1 China Portugal 2 Brazil (641) China (361) Spain (4,151)* 10 Argentina Brazil (667) Argentina (643) * Including Schlecker Exit from Turkey
Slide 9: Moving forward, we will continue to grow in our core markets
Moving forward, we will continue to grow in our core markets • DIA is in 3 of the Accelerating expansion in Brazil, Argentina and China, TOP 10 most where we see great growth opportunities promising emerging grocery markets Rolling out our new formats in food and HPC (Clarel) in (IGD ranking) Iberia
Slide 10: Emerging Markets share of Group's sales keeps growing
Emerging Markets share of Group’s sales keeps growing, bringing diversification and resilience Brazil Net sales Brazilian Real 26% CAGR 4,111 3,398 2,780 2,395 2,053 1,580 1,144 848 640 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E # stores 236 258 300 327 376 408 480 561 667 In Bra
Slide 11: DIA's answers: a simple and efficient 2P business model
DIA’s answers: a simple and efficient 2P business model Proximity specialist Low cost Lowest operator prices Quality Franchise private label Loyalty program DIA’s business model relies on an attractive 2P value proposition enhanced by a successful franchise formula: the 2PF Page 9
Slide 12: DIA's answers: 1 - Proximity specialist
DIA’s answers: 1 - Proximity specialist Proximity specialist Low cost Lowest operator prices Quality Franchise private label Loyalty program Page 10
Slide 13: Proximity is at the heart of DIA concept
Proximity is at the heart of DIA concept DIA Market DIA Maxi Schlecker/Clarel • 62% stores • 22% stores • 16% stores • Almost 59% total revenues • Around 38% total revenues • Around 3% total revenues • Surface: 700 -1,000 sq.m • Surface: 400 - 700 sq.m • Surface: ~200 sq.m Key • Located on the outsk
Slide 14: DIA is continuously improving its formats to generate sales growth
DIA is continuously improving its formats to generate sales growth Continuous store remodelling to become… 2007/08 2010/11 2014/15 DIA Market I II III DIA Maxi I II III …More specialist in HPC • Enlarged multi brand private label offer …More specialist in Fresh products • Fruits & Vegetables • Baker
Slide 15: We are testing and investing in a multi channel approach
We are testing and investing in a multi channel approach with promising results Market Place On line shopping APP 4,151 Picking points Customer behaviour (Spain) With its 4,151 picking points in Spain, DIA is well positioned to develop an attractive and competitive online offer Page 13
Slide 16: DIA's answers: 2 - Lowest prices
DIA’s answers: 2 - Lowest prices Proximity specialist Low cost operator Lowest prices Quality Franchise private label Loyalty program Page 14
Slide 17: DIA has the best price image in 4 markets
DIA has the best price image in 4 markets Price image Spain 80 70 60 50 40 30 20 10 0 apr-05 sep-05 may-06 apr-07 sep-07 apr-08 sep-08 apr-09 sep-09 apr-10 sep-10 jun-11 abr-12 nov-12 may-13 nov-13 DIA Competitor 1 Competitor 2 The most recommended Nº 1 in price food retailer We continuously invest
Slide 18: DIA's answers: 3 - Quality private label
DIA’s answers: 3 - Quality private label Proximity specialist Low cost Lowest operator prices Quality Franchise private label Loyalty program Page 16
Slide 19: DIA is creating a multi brand Private Label offer
DIA is creating a multi brand Private Label offer From… …To Beauty & Personal Care Pet Care Baby care DIA is enriching its private label offer specially in Health & Personal Care products Page 17
Slide 20: More than 50% of our sales are made through private label
More than 50% of our sales are made through private label: a unique competitive advantage Private label penetration (weight in FMCG sales) DIA Market 9% 9x 1% 37% 7x 5% 7% 38% 5x 57% 32% 62% 36% From 1.4x to 2x 56% 39% DIA well above competitors specially in emerging markets Source: Market research
Slide 21: DIA's answers: 4 - Loyalty program
DIA’s answers: 4 - Loyalty program Proximity specialist Low cost Lowest operator prices Quality Franchise private label Loyalty program Page 19
Slide 22: Learning from the consumer / customer behaviour is key for DIA
Learning from the consumer / customer behaviour is key for DIA 5 countries 16,640,699 active card holders Club DIA customers purchases data mining 12.1 million personalised discount coupons redeemed by Club DIA customers every month Loyalty Card: contribution to price advantage and in-depth customer
Slide 23: DIA's answers: 5 - Franchise
DIA’s answers: 5 - Franchise Proximity specialist Low cost Lowest operator prices Quality Franchise private label Loyalty program Page 21
Slide 24: Franchise is the best operating model for Proximity stores
Franchise is the best operating model for Proximity stores Visit our web: http://franquicia.dia.es/ Page 22
Slide 25: Franchise is the best operating model for Proximity stores
Franchise is the best operating model for Proximity stores Visit our web: http://franquicia.dia.es/ Page 23
Slide 26: DIA provides to its franchisee a distinctive know-how and track record
DIA provides to its franchisee a distinctive know-how and a solid track record Winning A profitable commercial business proposition model Franchisee • Focused on results Strong brand Economies of • High-performance team strategy scale in purchasing • Customers unique shopping experience Efficient •
Slide 27: DIA counts today with close to 3,000 franchises
DIA counts today with close to 3,000 franchises Franchise stores, # X1.8 1.723 X7.2 958 1.038 X3.2 230 144 72 2008 2013 2008 2013 2008 2013 Iberia Emerging France DIA has multiplied by 2.5 its franchise stores over the last 5 years Page 25
Slide 28: We see still a big potential to grow our franchise business
We see still a big potential to grow our franchise business Stores by operating model 52% 77% Directly operated Franchise 48% 23% 2008 2013* 2016 Franchise is a key growth lever for DIA *excluding Schlecker Page 26
Slide 29: DIA's answers: 6 - Low cost operator
DIA’s answers: 6 - Low cost operator Proximity specialist Low cost Lowest operator prices Quality Franchise private label Loyalty program Page 27
Slide 30: We have achieved important cost reductions
We have achieved important cost reductions that allow us to be more competitive Total Distribution costs / sales (%) ROI* 17.7% 17.9% 16.5 17.3% 16.1 16.5% 15.7 15.3 15.0 12.0% 2009 2010 2011 2012 2013* 2010 2011 2012 2013 Sector *excluding Schlecker average • Energy savings (e.g., leds in all store
Slide 31: In summary, we will continue to benefit from a strong momentum
In summary, we will continue to benefit from a strong momentum • Consumers are looking for Price and Proximity and DIA is the closest and the cheapest • Our franchise know how and network is a key distinctive success factor that we will continue to strengthen and develop • Growth in Iberia, Argentin
Slide 32: Investor Day 2014
IN ESTOR IY, (4) DAY 2014 ‘L MUNDO DE BALONCESTO FIBA ESPANA 2014
Slide 33: Day 2014
DAY 2014 COPA DEL MUNDO DE BALONCESTO FIBA ESPANA 2014
Slide 34: Investor Day 2014
IN ESTOR IY, (4) DAY 2014 ‘L MUNDO DE BALONCESTO FIBA ESPANA 2014