Distribuidora Internacional de Alimentacion SA · BME:DIA

Distribuidora Internacional de Alimentacion SA — H1 2017 Earnings Presentation

26 slides from Distribuidora Internacional de Alimentacion SA's earnings presentation, 2017

  1. Slide 1: H1 2017 Results

    H117 Results

  2. Slide 2: Legal disclaimer

    Legal disclaimer This document does not constitute or form part of any purchase, sales or Exchange offer, nor is it an invitation to draw up a purchase sales or exchange offer, or advice on any stock issued by Distribuidora Internacional de Alimentación, S.A. (“DIA” or the “Company”). Nor shall this

  3. Slide 3: Index

    Index 1. Highlights 4 2. Financial review 6 3. Closing remarks 14 4. Q&A 18 5. Back-up 19 /3

  4. Slide 4: Highlights

    01 Highlights

  5. Slide 5: H1 2017 highlights

    H1 2017 highlights +4.1% +3.3% +4.3% LFL Gross Sales Under Banner Adj. EBITDA EUR256.8m EUR103.7m +EUR50m vs FY2016 vs June 2016 LTM Cash From Operations(1) Net debt reduction (1) Defined as adjusted EBITDA - Non-recurring cash items - Capex; on organic basis /5

  6. Slide 6: Financial review

    02 Financial review

  7. Slide 7: 4.1% increase in Gross Sales Under Banner

    4.1% increase in Gross Sales Under Banner Change +4.3% -1.8% +1.6% +4.1% EURm 211.8 -87.4 78.1 5,127.4 4,924.9 H1 2016 LFL Space FX & calendar H1 2017 effect (1) (1) Calendar effect of -0.7% /7

  8. Slide 8: H1 2017 results summary

    H1 2017 results summary Net sales 4,287.6 100.0% 3.4% 2.4% 1.0% Adjusted EBITDA(1) 278.3 6.5% 3.3% 1.7% 1.7% D&A -115.4 -2.7% 3.6% 2.7% 1.0% Adjusted EBIT(1) 162.9 3.8% 3.1% 0.9% 2.2% Non-recurring items -48.2 -1.1% 1.0% 0.5% 0.5% Non-Recurring cash items -33.6 -0.8% 4.8% -3.8% in Q2 2017 Long-Term

  9. Slide 9: Iberia

    Iberia Gross Sales Under Banner (EURm) H1 2017 Change Change +0.9% -3.1% -0.8% -3.0% Gross sales under banner 3,242.6 -3.0% EURm 3,342.3 31.4 -103.6 -27.5 3,242.6 Net sales 2,717.4 -3.9% Adjusted EBITDA 224.3 -2.4% Adj. EBITDA margin 8.3% 12 bps D&A (84.3) -6.0% H1 2016 LFL Space Calendar H1 2017 ef

  10. Slide 10: Emerging Markets

    Emerging Markets Gross Sales Under Banner Change Change (EURm) H1 2017 (ex-FX) Change +10.4% +2.0% +6.7% +19.1% Gross sales under banner 1,884.8 12.1% 19.1% EURm 30.9 106.4 1,884.8 1,582.6 164.9 Net sales 1,570.2 11.4% 18.9% Adjusted EBITDA 54.0 25.5% 36.8% Adj. EBITDA margin 3.4% 45 bps H1 2016 LFL

  11. Slide 11: Stable operating margins in H1 2017 due to mix effect

    Stable operating margins in H1 2017 due to mix effect Adj. EBITDA margin Iberia Emerging DIA Group 8.3% 3.4% 8.1% 6.5% 6.5% 3.0% H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 Adj. EBIT margin Iberia Emerging DIA Group 1.5% 3.8% 3.8% 5.0% 5.2% 1.4% H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 /

  12. Slide 12: Net debt reduction of EUR103.7m in the last twelve months

    Net debt reduction of EUR103.7m in the last twelve months EURm Leverage down from 1.8x to 1,132.4 1,123.6 1.6x net debt to adj. EBITDA. 1,019.9 1.84x 1.83x 878.3 Average maturity of total debt 1.60x 1.40x is now 3.5 years. FY 2015 H1 2016 FY 2016 H1 2017 EUR128.5m dividend payment on July 18th. / 12

  13. Slide 13: Last twelve months Cash-Flow generation

    Last twelve months Cash-Flow generation 636.8 -70.3 -309.7 256.8 -43.5 +47.2 +20.2 280.7 LTM Adjusted LTM Non-recurring LTM Capex LTM CFO LTM Tax paid LTM Trade WC LTM Other LTM Free Cash EBITDA cash items Flow / 13

  14. Slide 14: Closing remarks

    03 Closing remarks

  15. Slide 15: Business highlights

    Business highlights DIA Market update gaining momentum in Iberia: 162 stores remodeled in H1 2017, of which more than half franchised stores. 29 La Plaza de DIA upgrades as of June 30th; 100 expected for 2017 year-end. Online sales in Spain grew by 2.9 times to EUR26.2m. Portugal turnaround confirme

  16. Slide 16: Powering innovation: new project to attract digital talent

    Powering innovation: new project to attract digital talent http://www.nexusbydia.com / 16

  17. Slide 17: Closing remarks

    Closing remarks Focus on maintaining the LFL performance in Iberia through the active improvement of the store base. Space contraction in Spain to ease in the second half of 2017. Synergies will continue to be invested in customer through prices and improvements in service. Low inflation in LatAm is

  18. Slide 18: Q&A

    04 Q&A

  19. Slide 19: Back-up

    05 Back-up

  20. Slide 20: Gross sales under banner by country

    Gross sales under banner by country Change (EURm) H1 2017 % Change FX effect (ex-FX) Spain 2,833.9 55.3% -3.6% - -3.6% Portugal 408.7 8.0% 1.5% - 1.5% IBERIA 3,242.6 63.2% -3.0% - -3.0% Argentina 880.3 17.2% 15.7% -7.2% 22.9% Brazil 1,004.5 19.6% 22.2% 20.0% 2.2% EMERGING MARKETS 1,884.8 36.8% 19.1%

  21. Slide 21: Change in Trade Working Capital

    Change in Trade Working Capital Change (EURm) 30 June 2017 Change (ex-FX) Inventories (A) 647.8 5.5% 8.8% Trade & other receivables (B) 345.5 6.0% 7.8% Trade & other payables (C) 1,736.4 6.2% 8.9% TRADE WORKING CAPITAL (1) -743.1 6.8% 9.6% (1) Trade working capital defined as A+B-C / 21

  22. Slide 22: Currency performance

    Currency performance Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 28.2% 18.6% 16.4% 8.0% EUR/ARP EUR/BRL -4.8% -4.8% -7.6% -17.4% -25.1% -34.1% -38.5% -38.1% -38.4% -37.4% Bloomberg average currency rates (a negative change in exchange rates implies a depreciation versus the Euro) / 22

  23. Slide 23: A story of consistent, profitable growth in food retail

    A story of consistent, profitable growth in food retail # of stores Gross Sales Under Banner 10,314 7,420 7,810 4,355 2011 2016 2011 2016 adj. EBITDA Underlying EPS 628 0.44 471 0.27 2011 2016 2011 2016 (1) Ex-currency, excluding China, France and Turkey / 23

  24. Slide 24: Gross Sales Under Banner & adj. EBITDA by segment

    Gross Sales Under Banner & adj. EBITDA by segment H1 2016 Gross sales under banner H1 2017 Gross sales under banner Iberia 67.9% Iberia 63.2% Emerging 32.1% Emerging 36.8% H1 2016 adj. EBITDA H1 2017 adj. EBITDA Iberia 85.3% Iberia 80.6% Emerging 14.7% Emerging 19.4% / 24

  25. Slide 25: Growing penetration of Dia banner franchised stores

    Growing penetration of Dia banner franchised stores 61% 62% 61% 54% 48% 42% 38% 33% 27% 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017 Reported data / 25

  26. Slide 26: Contact details

    PARQUE EMPRESARIAL DE LAS ROZAS Jacinto Benavente, 2 A Las Rozas (Madrid) Spain - Postcode: 28232 +34 91 398 54 00 www.diacorporate.com

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