Casino, Guichard-perrachon Sa · EURONEXT:CO
Casino, Guichard-perrachon Sa — Groupe Casino — H1 2015 Earnings Presentation
62 slides from Casino, Guichard-perrachon Sa's earnings presentation, Jul 30, 2015
Slide 1: Half-year results July 30, 2015
July 30 Half-year GROUPE g” Casino NOURISHING A WORLD oF DIVERSITY
Slide 2: Highlights
Highlights ● France • Return to organic growth(1) in Q2 2015 (+0.4%) • The two banners which significantly repositioned their prices confirmed their recovery: Géant same-store sales up +2%(2) in Q2 Market share gains for Leader Price (+0.2pt(3)) and same-store sales close to break-even ● Interna
Slide 3: Q2 2015 Sales
Q2 2015 SALES Half-Year activities Results H2 2015 Appendices Jean-Charles Naouri Chairman and Chief Executive Officer
Slide 4: Group total sales €11.8 billion in Q2 2015
Group total sales €11.8 billion in Q2 2015 CHANGE IN CONSOLIDATED SALES BY SEGMENT In €m Variation Q2 2015/Q2 2014 Q2 2015 Total growth Organic growth* Same-store growth* France Retail 4,710 -0.4% +0.4% +0.1% Latam Retail 3,933 +3.7% +6.1% +2.4% Latam Electronics 1,258 -30.0% -21.8% -23.6% Asia 1,03
Slide 5: In France, return to growth thanks to recovery in Géant and Leader Price
In France, return to growth thanks to recovery in Géant and Leader Price IMPROVEMENT IN ORGANIC SALES* IMPROVEMENT IN SAME-STORE SALES* As % As % 0.4% Q3 2014 Q4 2014 Q1 2015 Q3 2014 Q4 2014 Q1 2015 0.1% Q2 2015 Q2 2015 -1.6% -1.3% -2.7% -1.9% -4.8% -2.7% ● Géant same-store sales up +2.0%** driven b
Slide 6: Excellent current trading in July
Excellent current trading in July – 4-week ending July 26th Same-store sales* Q1 2015 Q2 2015 4W Hypermarkets (excluding Codim) -1.5% +2.0% +6.3% Supermarkets -1.4% -2.3% +2.9% Convenience +5.4% +7.5% +8.6% Monoprix +0.3% +0.7% +2.4% Franprix -3.2% -3.0% +1.1% Leader Price -7.1% -0.9% +0.7% France -
Slide 7: In Latin America, strong food sales and fall in electronics
In Latin America, strong food sales and fall in electronics linked to macroeconomic conditions CHANGE IN SALES As % Organic growth* Same-store growth* Latam Retail +6.1% +2.4% Latam Electronics -21.8% -23.6% ● Food sales in Latin America remained at a good level (+6.1% organic growth and +2.4% same-
Slide 8: Strong growth in E-commerce
Strong growth in E-commerce CNOVA In €m Q2 2014 Q2 2015 Total growth GMV* (gross merchandise volume) incl tax 968 1,154 +25.8% at constant exchange rates Traffic (visits in millions) 285 396 +38.9% Active customers** (in millions) 12.3 15.0 +22.8% Orders*** (in millions) 6.9 8.8 +27.3% Units sold (i
Slide 9: Half-Year Activities
Q2 2015 sales HALF-YEAR ACTIVITIES Results H2 2015 Appendices Jean-Charles Naouri Chairman and Chief Executive Officer
Slide 10: Return to growth at Géant
Return to growth at Géant ● Same-store* sales up +2%** in Q2 despite the carry-over effect of price cuts in 2014 ● Traffic and volumes continued to rise during the semester In Q2 2015** ● Recovery across all categories: Traffic up +4.0% Q2 sales volumes up +5.1% in food and +4.2% in non-food and vol
Slide 11: A new identity to support the commercial renewal
A new identity to support the commercial renewal ● A return to business fundamentals: continuous in-store offers, fast checkouts, new concepts and private-label brand ● Development of synergies with other Group subsidiaries ● Renovation of store fronts and transformation of interior design ● New vis
Slide 12: Zoom on key concepts
Zoom on key concepts "Les prix ronds" (ROUNDED PRICES) "Tous les jours" (EVERYDAY) ● Low prices ● Quality products ● Easily identifiable ● Lowest prices in an aisle ● Textile, home, perfume with just private-label and leisure products products "En gros c’est moins cher" (CHEAPER BY BULK) "LA CRIÉE"
Slide 13: Development of synergies with the Group
Development of synergies with the Group ● Development of private-label textiles and household products in synergy with Exito and joint initiatives with Cdiscount COLLABORATION WITH EXITO ON TEXTILES ● Bronzini (men): ready-to-wear, sport, underwear and homewear ● Arkitect (women): ready-to-wear and
Slide 14: Market share gains for Leader Price
Market share gains for Leader Price ● Same-store sales* close to break-even (-0.9%), sustained by growth in traffic and volumes ● Commercial excellence plan which enabled a traffic growth more than +10% in July In Q2 2015 ● Market share gains year-on-year Traffic up +7.0% ● Sharp increase in store n
Slide 15: Continuing strong performance by Monoprix
Continuing strong performance by Monoprix ● Same-store sales* up during the semester ● Volumes and traffic up in Q2 ● Organic growth driven by very strong expansion: 27 store openings in H1 2015 ● Accelerated development of booming formats: In Q2 2015 Monop’ and Naturalia, which opened its 100th Tra
Slide 16: Enhanced appeal of Casino supermarkets
Enhanced appeal of Casino supermarkets ● Traffic improves in Q2 ● Continued work on making stores more attractive: • Development of in-store offers • Reinforcement of loyalty programme ● Sales still impacted by a residual effect from price cuts ● Positive trends in the last 4 weeks: same-store sales
Slide 17: Renewal of Franprix concept
Renewal of Franprix concept ● Same-store sales improve as brand traffic increases ● Launch of new Mandarine (“Tangerine”) concept which should boost sales over the next quarters In Q2 2015 ● The store disposals program requested by the French Competition Authority will finish on June 30, 2015 Traffi
Slide 18: Zoom on the Mandarine concept
Zoom on the Mandarine concept 18 2015 HALF-YEAR RESULTS July 30, 2015
Slide 19: Strong dynamism of Convenience stores
Strong dynamism of Convenience stores ● Same-store sales* continue to grow over the semester at +7.5% in Q2 versus +5.4% in Q1, driven by growth in traffic and volumes ● Continuing rollout of new concepts: • Casino Shop In Q2 2015 • Leader Price Express Traffic up +13.0% ● Continuous renovation of i
Slide 20: In Brazil, satisfactory activity at GPA Food; Via Varejo affected
In Brazil, satisfactory activity at GPA Food Via Varejo affected by macroeconomic conditions ● Slowdown in household consumption ● In this context, brand food sales are increasing ● Continuing expansion of booming food formats (convenience stores and Assaí) Au S1 2015* ● Via Varejo's activity impact
Slide 21: Good performance of food banners in Brazil
Good performance of food banners in Brazil ● Organic growth still high in H1 at +7.2% ● Traffic up and volumes stable in Q2 ● Hypermarket and supermarket renovation In H1 2015 programme launched in Q2 ● Good expansion in booming formats in H1 Sales: €5.4bn EBITDA: €310m ● Very good improvement in sa
Slide 22: Via Varejo impacted by decline in consumption of durable goods
Via Varejo impacted since Q2 by the decline in consumption of durable goods ● Q2 sales strongly impacted (TV/video and audio in particular) by the recession in Brazil and by the base effect of the World Cup in 2014 (finishing in July) ● The banner is adapting its offer to environmental changes In H1
Slide 23: Good commercial performance at Exito
Good commercial performance at Exito ● Good organic sales growth* in H1 at +1.4% sustained by premium and discount formats ● Increase in traffic in Colombia in Q2 In H1 2015 ● Good performance in Uruguay Sales: €2.2bn ● Continuing expansion and real estate development EBITDA: €140m EBITDA margin: 6.
Slide 24: Continuing commercial dynamic at Big C
Continuing commercial dynamic at Big C ● Maintains position as co-leader in hypermarkets and supermarkets: 32.5%* market share at end of May THAILAND ● Volumes up and traffic steady in Q2 In H1 2015 ● Dynamic sales policy: reinforcement of loyalty and of sales initiatives Sales: €1.8bn ● For the 4th
Slide 25: Group accelerated development in Vietnam
Group accelerated development in Vietnam ● Numerous in-store sales initiatives VIETNAM ● Continuing expansion in stores and shopping malls: • 1 store opening in H1 • 4 store openings expected in H2 In H1 2015 Sales: €312m (+26.4%) 25 2015 HALF-YEAR RESULTS July 30, 2015
Slide 26: Strong E-commerce growth
Strong E-commerce growth ● Cnova operates 25 sites in 12 countries ● €2.4bn GMV*, up +26.8% at constant exchange rates in H1 2015 ● Traffic up +38.9% with 396 million visits in Q2 ● 15 million active customers** worldwide at end June 2015 ● Development of pick-up points worldwide: 20,493 in total •
Slide 27: Results
Q2 2015 sales Half-Year activities RESULTS H2 2015 Appendices Antoine Giscard D’Estaing Chief Financial Officer
Slide 28: Preliminary notes
Preliminary notes ● H1 2015 financial statements were impacted by the following effects: • Changes in IFRS standards: application of IFRIC 21 interpretation; 2014 financial statements were adjusted accordingly • The increase in Tascom (the tax on commercial premises) adversely impacted France's trad
Slide 29: Activity and trading profit
Activity and trading profit H1 2014 restated H1 2015 In €m Sales 23,248 23,668 EBITDA* 1,289 994 EBITDA margin 5.5% 4.2% Trading profit 817 521 Trading margin 3.5% 2.2% Share of profit of associates 30 37 Trading profit 847 558 and share of profit of associates * EBITDA = Earnings Before Interest, T
Slide 30: Distribution of Group trading profit
Distribution of Group trading profit H1 2014 restated H1 2015 In €m France Retail 106 (53) Latam Retail 337 299 Latam Electronics 276 191 Asia Retail 107 138 E-commerce (10) (55) Total 817 521 ● Declining trading profit as a result of: • Price cuts in France • Economic downturn in Brazil due to comp
Slide 31: France Retail
France Retail H1 2014 restated H1 2015 In €m Sales 9,248 9,136 EBITDA 326 146 Trading profit 106 (53) Trading margin 1.2% -0.6% ● Price cuts made in 2013 and 2014, mainly at Géant and Leader Price still having a significant impact on commercial margins of these banners. The impact should wane in H2
Slide 32: Latam Retail
Latam Retail H1 2014 restated H1 2015 In €m Sales 7,305 7,803 EBITDA 495 459 EBITDA margin 6.8% 5.9% Trading profit 337 299 Trading margin 4.6% 3.8% ● -7.8% drop in trading profit at constant exchange rate: • In Brazil, rapid inflation of costs (energy, wages) weighed on H1 margin, operating efficie
Slide 33: Latam Electronics
Latam Electronics H1 2014 restated H1 2015 In €m Sales 3,477 2,924 EBITDA 304 226 EBITDA margin 8.7% 7.7% Trading profit 276 191 Trading margin 7.9% 6.5% ● -27% drop in Trading profit at constant exchange rate, impacted by the sharp contraction in activity from Q2 ● Via Varejo implemented significan
Slide 34: Asia
Asia H1 2014 restated H1 2015 In €m Sales 1,692 2,076 EBITDA 159 198 EBITDA margin 9.4% 9.5% Trading profit 107 138 Trading margin 6.3% 6.7% ● Good performance of subsidiaries in South-East Asia: • +6.4% growth in Trading profit at constant exchange rate • In Thailand, good operational control and s
Slide 35: E-commerce
E-commerce In €m H1 2014 restated H1 2015 GMV (Gross Merchandise Volume) 1,941 2,400 Sales margin* 135 157 Operating expenses* (139) (199) EBITDA* 11 (23) Trading profit* (4) (42) ● Very strong growth in volumes driven by the development of sites and increase in marketplaces ● Growth in commercial m
Slide 36: Net published profit, Group share
Net published profit, Group share H1 2014 restated H1 2015 In €m Trading profit 817 521 Other operating income and expenses (174) 74 Résultat Opérationnel 643 595 Net finance costs (311) (255) Financial expenses 32 (148) Income tax expense (127) 27 Share of profit of associates 30 37 Profit from con
Slide 37: Other operating income and expenses
Other operating income and expenses H1 2014 H1 2015 In €m Capital gain on asset disposals (1) 23 Net income related to scope operations (52) 215 Net impairment of assets (11) (12) Provisions and charges for restructuring (72) (138) Of which Brazil (18) (39) Tax, legal and risk provisions and charges
Slide 38: Underlying net profit Group share
Underlying net profit Group share H1 2014 restated H1 2015 In €m Trading profit and share of profit of associates 847 558 Financial expenses (296) (223) Income tax expense (157) (83) Underlying net profit* 394 252 from continuing operations Of which minority interests 258 189 Group share 136 63 * Un
Slide 39: Underlying financial results
Underlying financial results* In €m H1 2014 H1 2015 France Retail (106) (49) Latam Retail (54) (73) Latam Electronics (94) (74) Asia (10) (9) E-commerce (32) (19) Total (296) (223) ● Tight control of the financial costs in France as a result of refinancing operations and lower rates ● In Brazil (GPA
Slide 40: Earnings Per Share
Earnings Per Share H1 2014 restated H1 2015 In €m Total number of shares 113,029,842 113,006,036 Underlying EPS (€) 0.968 0.163 Published EPS (€) 0.080 0.269 ● Half-yearly EPS calculated after accounting for the annual coupon paid to bearers of TSSDI or undated deeply subordinated notes (€26m in 201
Slide 41: Change in Group net financial debt
Change in Group net financial debt In €m (288) (164) (578) 1,804 (1,532) 82 (8,512) (7,836) Cash Change in Net Net financial Dividends Conversion Flow WCR CAPEX investments paid differences and (of which Cnova’s IPO) other 354 Free Cash Flow NFD NFD 30/06/2014 30/06/2015 ● The increase in debt year
Slide 42: Very good liquidity maintained
Very good liquidity maintained €4,657m OF LIQUIDITY* BOND MATURITIES** At 06/30/2015 SPREAD OVER THE TIME In €m In €m 3,079 1,000 1,000 900 900 850 600 650 552 508 1,578 386 Cash and cash Undrawn 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 equivalents confirmed lines of credit AVERAG
Slide 43: H2 2015
Q2 2015 sales Half-Year activities Results H2 2015 Appendices Jean-Charles Naouri Chairman and Chief Executive Officer
Slide 44: Perspectives for second-half
Perspectives for second-half In France, return to growth and profitability improvement In Brazil, action plans reinforcement Maintain the good performance at Exito and Big C Continue strong growth at Cnova Casino takes a major step in further integrating its Latin American operations 44 2015 HALF-YE
Slide 45: In France, return to growth and profitability improvement
In France, return to growth and profitability improvement ● Significant improvement in current trading ● End of the effect of price cuts in the second half of 2015 ● Operational efficiency gains 45 2015 HALF-YEAR RESULTS July 30, 2015
Slide 46: In Brazil, action plans reinforcement
In Brazil, action plans reinforcement ● At GPA Food • Continuation of store renovations started in Q2 2015 • Expansion of the most buoyant store formats: cash & carry and convenience • Continuation of in-store operational action plans ● At Via Varejo • Adaptation of cost structure to the macro-econo
Slide 47: Maintain the good performance at Exito and Big C
Maintain the good performance at Exito and Big C ● Very good business momentum at banners • Store and price excellence • Expansion of buoyant formats: Discount Convenience ● Maintenance of high margin level • Gradual increase in the share of complementary activities to retail • Continuation of o
Slide 48: Continue strong growth at Cnova
Continue strong growth at Cnova ● Growth of GMV • Development of marketplaces • Operations to grow traffic and merchandise volume • Continuing roll-out of Click & Collect • Optimisation of sites and mobile interfaces ● Improved margin • Continuing growth of marketplaces and assortment • The bulk of
Slide 49: Appendices
Q1 2015 Net sales H1 2015 Highlights Results H2 2015 APPENDICES
Slide 50: Change in same store sales excluding petrol
Change in same store sales excluding petrol France Q1 Q2 H1 2015 HM Géant -1.2% +1.9% +0.4% Casino SM -1.5% -2.2% -1.9% Franprix – Leader Price -5.8% -2.5% -4.1% Monoprix 0.0% +0.5% +0.3% International Q1 Q2 H1 2015 Latam Retail +4.1% +0.2% +2.1% Latam Electronics -2.7% -23.6% -13.3% Asia 0.0% -2.2%
Slide 51: Calendar effects
Calendar effects H1 2015 HM Géant +0.2% Casino SM 0.0% Convenience -0.2% Monoprix -0.3% FPLP -0.5% France Retail -0.1% Latam Retail -0.4% Asia +0.2% International -0.2% Group -0.1% 51 2015 HALF-YEAR RESULTS July 30, 2015
Slide 52: Definition of underlying net profit
Definition of underlying net profit ● Underlying net profit corresponds to net profit from continuing operations, adjusted for the impact of other operating income and expenses (as defined in the “Significant Accounting Policies” section of the notes to the annual consolidated financial statements),
Slide 53: Reconciliation of reported net profit to underlying net profit
Reconciliation of reported net profit to underlying net profit H1 2014 Adjustments H1 2014 H1 2015 Adjustments H1 2015 In €m restated underlying underlying Trading profit 817 0 817 521 521 Other operating income and expenses (174) 174 0 74 (74) Operating profit 643 174 817 595 (74) 521 Finance costs
Slide 54: Share of profit of associates
Share of profit of associates In €m H1 2014 restated H1 2015 France Retail (9) (0) Latam Retail 19 14 Latam Electronics 5 5 Mercialys 15 19 Total 30 37 54 2015 HALF-YEAR RESULTS July 30, 2015
Slide 55: Underlying minority interests
Underlying minority interests* In €m H1 2014 H1 2015 France Retail (1) 0 Latam Retail 128 99 Of which Brazil 95 59 Of which Colombia 26 25 Latam Electronics 109 73 Asia 32 41 Of which Thailand 30 39 E-commerce (10) (26) Others and Holdings International 1 1 Total 258 189 * Underlying minority intere
Slide 56: Cash flow statement
Cash flow statement In €m H1 2014 restated H1 2015 Net financial debt at beginning of period (5,502) (5,822) Cash flow 824 613 Change in working capital requirement (1,575) (1,836) Other* 201 127 Net cash flow from operating activities, after tax (550) (1,096) Capital expenditure (693) (721) Acquisi
Slide 57: Simplified consolidated balance sheet
Simplified consolidated balance sheet In €m 06/30/2014 restated 06/30/2015 Goodwill 11,177 11,303 Intangibles and property, plant and equipment 14,745 14,475 Investments in associates 908 743 Non-current assets 1,912 2,148 Other non-current assets 582 544 Inventories 5,001 5,333 Trade and other rece
Slide 58: Puts included in financial liabilities
Puts included in financial liabilities % Value Value Exercise In €m capital On 30/06/2014 on 30/06/2015 period Majority owned Various dates Franprix - Leader Price 48 44 franchise stores Various dates Monoprix 1 3 2017 At any time Uruguay 14 85 2021 Total 63 132 58 2015 HALF-YEAR RESULTS July 30
Slide 59: Off-balance sheet puts
Off-balance sheet puts % Value Value Exercise In €m capital On 30/06/2014 on 30/06/2015 period Minority owned Various dates Franprix - Leader Price 73 37 2017 franchise stores At any time Uruguay (Disco) 82 0 2021 Total 155 37 (off-balance sheet) 59 2015 HALF-YEAR RESULTS July 30, 2015
Slide 60: Average exchange rates
Average exchange rates H1 2014 H1 2015 Chg.% Argentina (ARS/EUR) 10.7101 9.8208 9.1% Uruguay (UYP/EUR) 30.9096 28.6148 8.0% Thailand (THB/EUR) 44.6170 36.7826 21.3% Vietnam (VND/EUR) 28.8474 24.0136 20.1% (x 1,000) Colombia (COP/EUR) 2.6856 2.7720 -3.1% (x 1,000) Brazil (BRL/EUR) 3.1499 3.3102 -4.8%
Slide 61: Closing exchange rates
Closing exchange rates H1 2014 H1 2015 Chg.% Argentina (ARS/EUR) 11.1041 10.1626 9.3% Uruguay (UYP/EUR) 31.2540 30.2405 3.4% Thailand (THB/EUR) 44.3230 37.7960 17.3% Vietnam (VND/EUR) 29.0178 24.2499 19.7% (x 1,000) Colombia (COP/EUR) 2.5720 2.9001 -11.3% (x 1,000) Brazil (BRL/EUR) 3.0002 3.4699 -13
Slide 62: Disclaimer
DISCLAIMER This presentation contains forward-looking information and statements about Casino. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objective