Slide 1: Q1 Results
Q1 RESULTS Q1 2022 RESULTS RELEASE HERE ADDITIONAL NON-FINANCIAL INFORMATION RELATING TO THE PERIOD (MEDIA PRESENTATION) HERE
Slide 2: Introductory Note
Q1 RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2
Slide 3: Content
Q1 RESULTS 4. Q1 2022 EBITDA PERFORMANCE CONTENT 1. Q1 2022 HIGHLIGTHS 4.1. EBITDA 2. Q1 2022 KEY FIGURES 4.2. Margin 2.1. Income Statement 5. Q1 2022 SUMMARY 2.2. Cash Flow 2.3. Balance Sheet APPENDIX 3. Q1 2022 SALES PERFORMANCE Financial Statements 3.1. Group Outlook 2022 3.2. Biedronka 3.3. Hebe
Slide 4: Q1 2022 Highlights (1/2)
Q1 RESULTS 1. Q1 2022 HIGHLIGHTS Resilient consumer demand at the beginning of the year despite increasing pressure over disposable income (1/2) The war in Ukraine has driven sharp deterioration of consumer confidence FAST and an acceleration of inflationary trends CHANGING ENVIRONMENT 4
Slide 5: Q1 2022 Highlights (2/2)
Q1 RESULTS 1. Q1 2022 Strong sales growth at 15.2% (+16.8% at constant exchange rates) HIGHLIGHTS • Despite the pressure over disposable income that softened volume growth, our strong value propositions, price competitiveness and sharp commercial actions (2/2) continued to drive growth • Peak in vol
Slide 6: Q1 2022 Key Figures: Income Statement
Q1 RESULTS 2. Q1 2022 KEY FIGURES 2.1. INCOME STATEMENT (€ Million) Net Sales and Services Q1 22 5,513 Q1 21 4,786 ∆ 15.2% Gross Profit 1,184 21.5% 1,029 21.5% 15.0% COMPETITIVENESS Operating Costs -812 -14.7% -708 -14.8% 14.8% EBITDA 372 6.7% 322 6.7% 15.5% DROVE STRONG Depreciation -190 -3.4% -185
Slide 7: Q1 2022 Key Figures: Cash Flow
Q1 RESULTS 2. Q1 2022 KEY FIGURES 2.2. CASH FLOW CASH FLOW (€ Million) Q1 22 Q1 21 REFLECTED EBITDA 372 322 BUSINESS Capitalised Operating Leases Payment -74 -69 SEASONALITY, Interest Payment -35 -35 HIGH WORKING Other Financial Items 0 0 CAPITAL BY THE Income Tax -39 -36 END OF 2021 AND Funds From
Slide 8: Q1 2022 Key Figures: Balance Sheet
Q1 RESULTS 2. Q1 2022 KEY FIGURES 2.3. BALANCE (€ Million) Q1 22 2021 Q1 21 SHEET Net Goodwill Net Fixed Assets 614 4,155 618 4,159 614 3,879 Net Rights of Use (RoU) 2,259 2,221 2,139 SOLID BALANCE Total Working Capital -2,975 -3,290 -2,701 SHEET SUPPORTING Others 138 145 122 THE EXECUTION OF Invest
Slide 9: Q1 2022 Sales Performance: Group
Q1 RESULTS 3. Q1 2022 SALES The consistent work done by the teams throughout the years to guarantee quality at PERFORMANCE • the best prices is the force behind the strength of the performance 3.1. GROUP • Group LFL at 13.0% Contribution to Sales Growth (Mn €) LFL Sales Growth 2021 2022 13.0% 10.1%
Slide 10: Sales Performance: Biedronka
Q1 RESULTS 3. Q1 2022 • Strong price competitiveness and a constantly improved value proposition continued SALES to deliver PERFORMANCE • Peak in volumes in certain products driven by the war in Ukraine and higher inflation also affecting the performance 3.2. BIEDRONKA • 16 stores opened in the quar
Slide 11: Sales Performance: Hebe
Q1 RESULTS 3. Q1 2022 SALES PERFORMANCE • Good recovery against Q1 21 that was severely impacted by the pandemic situation E-commerce continued to progress well, representing 16% of sales (14% in Q1 21) 3.3. HEBE • 11
Slide 12: Sales Performance: Pingo Doce
Q1 RESULTS 3. Q1 2022 Protecting competitiveness in light of pressure over disposable income SALES • Focus on leveraging its unique competitive position in food solutions categories PERFORMANCE • increasing the relevance of its value proposition 3.4. PINGO DOCE • Two stores opened (one net addition)
Slide 13: Sales Performance: Recheio
Q1 RESULTS 3. Q1 2022 SALES PERFORMANCE • Competitiveness in good shape allowing the banner to benefit from the strong recovery of HoReCa and Tourism sectors that were impacted by strict pandemic 3.5. RECHEIO restrictions in Q1 21 13
Slide 14: Sales Performance: Ara
Q1 RESULTS 3. Q1 2022 • Value proposition well fitted to the neighbourhoods Ara’s focus on mitigating high food inflation with good commercial actions continued SALES • to deliver PERFORMANCE • Basket inflation, which was lower than the market, was a relevant feature of the performance 3.6. ARA • 14
Slide 15: Q1 2022 EBITDA Performance: EBITDA
Q1 RESULTS 4. Q1 2022 EBITDA Strong sales delivery drove EBITDA to grow despite cost inflation that PERFORMANCE • accelerated in March 4.1. EBITDA • Good contribution from all banners 15
Slide 16: Q1 2022 EBITDA Performance: EBITDA Margin
Q1 RESULTS 4. Q1 2022 EBITDA • Strong sales delivery with resilient volumes helped to mitigate cost inflation that accelerated in March PERFORMANCE • Remarkable EBITDA margin progression at Recheio and Ara contributed to preserve Group EBITDA margin in the quarter 4.2. EBITDA MARGIN 16
Slide 17: Q1 2022 Summary
Q1 RESULTS 5. Q1 2022 SUMMARY Our strong sales performance in the quarter, which was enhanced by food inflation and volume increases at the beginning of the war in Ukraine, enabled us to mitigate the effects of higher cost inflation WE MAINTAIN THE OUTLOOK FOR 2022 The prevailing environment is one
Slide 18: Appendix
Q1 RESULTS APPENDIX FINANCIAL STATEMENTS OUTLOOK 2022 18
Slide 19: Financial Statements (1/9): Income Statement excl. IFRS16
Q1 RESULTS FINANCIAL STATEMENTS (1/9) INCOME STATEMENT (Excl. IFRS16) (€ Million) Q1 22 Q1 21 ∆ Net Sales and Services 5,513 4,786 15.2% Gross Profit 1,184 21.5% 1,029 21.5% 15.0% Operating Costs -919 -16.7% -808 -16.9% 13.7% EBITDA 265 4.8% 221 4.6% 19.9% Depreciation -110 -2.0% -106 -2.2% 3.0% EBI
Slide 20: Financial Statements (2/9): Cash Flow
Q1 RESULTS FINANCIAL STATEMENTS (2/9) CASH FLOW (Excl. IFRS16) (€ Million) Q1 22 Q1 21 EBITDA 265 221 Interest Payment -1 -3 Other Financial Items 0 0 Income Tax -39 -36 Funds From Operations 225 183 Capex Payment -201 -116 Change in Working Capital -208 -87 Others -11 -1 Cash Flow -196 -21 20
Slide 21: Financial Statements (3/9): Balance Sheet
Q1 RESULTS FINANCIAL STATEMENTS (3/9) BALANCE SHEET (€ Million) Q1 22 (Excl. IFRS16) 2021 Q1 21 Net Goodwill 614 618 614 Net Fixed Assets 4,155 4,159 3,879 Total Working Capital -2,971 -3,287 -2,697 Others 113 121 102 Invested Capital 1,911 1,611 1,899 Total Borrowings 450 460 530 Financial Leases 3
Slide 22: Financial Statements (4/9): EBITDA Breakdown
Q1 RESULTS FINANCIAL STATEMENTS (4/9) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) Q1 22 Mg Q1 21 Mg Q1 22 Mg Q1 21 Mg Biedronka 318 8.3% 286 8.4% 246 6.4% 217 6.4% Hebe 4 5.2% 1 2.6% -2 n.a. -4 n.a. Distribution Portugal 68 5.6% 60 5.5% 50 4.1% 43 3.9% Ara 12 3.2% 3 1.1% 2 0.6% -5 n.a. Others &
Slide 23: Financial Statements (5/9): Net Financial Costs
Q1 RESULTS FINANCIAL STATEMENTS (5/9) NET FINANCIAL COSTS IFRS16 Excl. IFRS16 (€ Million) Q1 22 Q1 21 Q1 22 Q1 21 Net Interest -3 -4 -3 -4 Interests on Capitalised Operating Leases -33 -32 - - Exchange Differences -8 -7 -4 -1 Others -1 -1 -1 -1 Net Financial Costs -45 -45 -9 -6 23
Slide 24: Financial Statements (6/9): Sales Breakdown
Q1 RESULTS FINANCIAL STATEMENTS (6/9) SALES BREAKDOWN Q1 22 Q1 21 ∆% (€ Million) % total % total excl. FX Euro Biedronka 3,843 69.7% 3,388 70.8% 15.4% 13.4% Hebe 72 1.3% 57 1.2% 28.0% 25.9% Pingo Doce 985 17.9% 929 19.4% 6.0% Recheio 228 4.1% 173 3.6% 31.6% Ara 382 6.9% 237 4.9% 65.0% 61.3% Others &
Slide 25: Financial Statements (7/9): Sales Growth
Q1 RESULTS FINANCIAL STATEMENTS (7/9) SALES GROWTH Total Sales Growth LFL Growth Q1 22 Q1 22 Biedronka Euro 13.4% PLN 15.4% 12.2% Hebe Euro 25.9% PLN 28.0% 20.8% Pingo Doce 6.0% 4.7% Excl. Fuel 4.8% 3.5% Recheio 31.6% 32.1% Ara Euro 61.3% COP 65.0% 39.5% Total JM Euro 15.2% Excl. FX 16.8% 13.0% 25
Slide 26: Financial Statements (8/9): Store Network
Q1 RESULTS FINANCIAL STATEMENTS (8/9) STORE NETWORK Openings Closings Number of Stores 2021 Q1 22 Q1 21 Q1 22 Q1 22 Biedronka * 3,250 16 5 3,261 3,130 Hebe 291 3 2 292 268 Pingo Doce 465 2 1 466 455 Recheio 42 0 0 42 42 Ara 819 14 1 832 689 * Excluding 14 Micro Fulfilment Centres (MFC) to supply Bie
Slide 27: Financial Statements (9/9): Capex
Q1 RESULTS FINANCIAL STATEMENTS (9/9) CAPEX (€ Million) Q1 22 Weight Q1 21 Weight Biedronka 50 50% 43 55% Distribution Portugal 39 39% 21 27% Ara 7 7% 12 15% Others 4 4% 2 3% Total CAPEX 99 100% 78 100% 27
Slide 28: Outlook 2022 (1/8)
Q1 RESULTS OUTLOOK 2022 (1/8) (released by March 9, 2022) The war initiated in Ukraine will have impacts that at this point are impossible to predict THE CONTEXT IS The rapid increase in food, energy, and transportation prices are today UNCERTAINT exacerbated by the military conflict and by increase
Slide 29: Outlook 2022 (2/8)
Q1 RESULTS OUTLOOK 2022 (2/8) (released by March 9, 2022) GROWTH & COMPETITIVENESS PROFITABILITY SUSTAINABILITY LONG TERM Focus on consumers’ Enhance the quality Increase productivity Deliver on the targets set for our STRATEGIC needs and expansion of value propositions and efficiency pillars of cor
Slide 30: Outlook 2022 (3/8)
Q1 RESULTS OUTLOOK 2022 (3/8) (released by March 9, 2022) In the current circumstances Biedronka’s priority is to stand by the Polish consumers and live up to its claim in a CLEAR moment of decrease in disposable income. Despite the poor visibility at this moment over the impact of recent events in
Slide 31: Outlook 2022 (4/8)
Q1 RESULTS OUTLOOK 2022 (4/8) (released by March 9, 2022) CLEAR Expand its store network in Poland (opening of c.30 stores in 2022) while continuing to focus on its STRATEGIC online growth strategy, which includes expanding its operation into new markets PRIORITIES Price competitiveness and promotio
Slide 32: Outlook 2022 (5/8)
Q1 RESULTS OUTLOOK 2022 (5/8) (released by March 9, 2022) CLEAR STRATEGIC Consolidate price leadership and run a dynamic commercial strategy PRIORITIES Develop the assortment to drive an increased share of wallet. Private brand as a key area of the offer Gain scale - expansion as central to the stra
Slide 33: Outlook 2022 (6/8)
Q1 RESULTS OUTLOOK 2022 (6/8) (released by March 9, 2022) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS (1/2) Develop in all banners food solutions that are healthier and respond to specific nutritional needs (vegan, CLEAR lactose-free and/or gluten-free solutions, children, ag
Slide 34: Outlook 2022 (7/8)
Q1 RESULTS OUTLOOK 2022 (7/8) (released by March 9, 2022) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS (2/2) Strengthen the involvement in social projects in all geographies, targeted to children, youngsters and CLEAR elderly people from vulnerable environments, focusing on as
Slide 35: Outlook 2022 (8/8)
Q1 RESULTS OUTLOOK 2022 (8/8) (released by March 9, 2022) Acknowledging that we face an unprecedent level of uncertainty ahead of us, we rely on… SUMMARY Our teams’ preparation to quickly adapt to changes in the contexts where the banners operate to better serve the consumers Our stronger market pos
Slide 36: Disclaimer
Q1 RESULTS DISCLAIMER Statements in this presentation that are forward-looking are based on current expectations of future events and are subject to risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertaint
Slide 37: Jerónimo Martins
Jeronimo Martins