Distribuidora Internacional de Alimentacion SA · BME:DIA

Distribuidora Internacional de Alimentacion SA — Q1 2018 Earnings Presentation

24 slides from Distribuidora Internacional de Alimentacion SA's earnings presentation, May 2018

  1. Slide 1: Q1 18 Results

    Q118 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 01 Highlights 4 02 Financial review 6 03 Business review 12 04 Closing remarks 15 05 Appendix 17 /3

  4. Slide 4: Highlights

    01 Highlights

  5. Slide 5: Q1 2018 highlights

    Q1 2018 highlights LFL Positive LFL in Spain despite competitiveness Iberia 0.0% 10% LFL in La Plaza supermarkets Spain +0.5% Difficult context and deflation in Brazil EM +4.2% Strong performance in Argentina despite macro 5.8% Stable adjusted EBITDA margin vs Q1 2017: Adj. EBITDA margin -30 bps in

  6. Slide 6: Financial review

    02 Financial review

  7. Slide 7: Strong negative FX effect hampered Gross Sales growth

    Strong negative FX effect hampered Gross Sales growth EURm Change +1.9% -1.0% +0.9% -10.2% -9.3% +47.6 -25.0 2,502.8 2,525.4 -255.9 2,269.5 Q1 2017 LFL Space Q1 20181 FX & Q1 2018 Calendar effect 1. Ex-FX and ex-calendar effect /7

  8. Slide 8: Iberia: Gross Sales Under Banner affected by unusual amount of rain

    Iberia: Gross Sales Under Banner EURm Change +0.0% -4.3% -4.3% IBERIAN LFL PERFORMANCE SPAIN La Plaza 1,570.2 +0.0 -68.1 Dia Spain Clarel 1,502.1 PORTUGAL -10% 0% +10% Proximity significantly affected by unusual Q1 2017 LFL Space & Q1 2018 Calendar effect amount of rain /8

  9. Slide 9: Emerging Markets: Gross Sales Under Banner

    Emerging Markets: Gross Sales Under Banner EURm Change +4.2% +3.9% +8.1% -25.8% -17.7% -4% food +36.4 1,008.3 -240.9 +39.2 deflation 932.7 in Brazil in Q1 2018 767.4 Q1 2017 LFL Space Q1 20181 FX & Q1 2018 Calendar effect 1. Ex-FX and ex-calendar effect /9

  10. Slide 10: Stable adjusted EBITDA margin at group level

    Stable adjusted EBITDA margin at group level Iberia 7.6% 7.3% Positive effect from segment DIA Group mix due to Latam 5.9% 5.8% currency depreciation. Q1 2017 Q1 2018 Good performance in Emerging Q1 2017 Q1 2018 Iberia despite strong 2.9% 3.0% price investments. Q1 2017 Q1 2018 / 10

  11. Slide 11: Net debt at EUR1,186m

    Net debt at EUR1,186m EURm 1,186 1,050 2.1x BBB- corporate credit 1.7x rating confirmed by S&P, with stable outlook Q1 2017 Q1 2018 / 11

  12. Slide 12: Business review

    03 Business review

  13. Slide 13: Operating highlights

    Operating highlights • Competitive landscape in Iberia remains tough • Ahead of the remodelling plan for 2018 (1,090 stores to be upgraded in Iberia) • 44 new proximity concept stores already operating in Iberia1 with a 20% sales uplift • Online sales grew by 48% in Q1 2018, up to EUR18m • Expansion

  14. Slide 14: La Plaza: transformation completed, ready to grow

    La Plaza: transformation completed, ready to grow • +10% LFL, 6th consecutive quarter of growth. 74% of sales through upgraded stores • Average sales densities up by 18% in 12 months • Store revision process completed with first 3 successful openings (14 forecasted for 2018) • Fresh categories accou

  15. Slide 15: Closing remarks

    03 Closing remarks aie pericnale

  16. Slide 16: Closing remarks

    Closing remarks • Total focus on top-line growth • Synergies will continue to be invested in the customer with better prices, superior in-store service and more high-value-added solutions • Continuous improvement of our store base • Deflation in Brazil starting to ease but strong depreciation of cur

  17. Slide 17: Appendix

    04 Appendix

  18. Slide 18: Food inflation in Emerging Markets

    Food inflation in Emerging Markets National Food Inflation in Brazil National Food Inflation in Argentina 16.7% 39.2% 39.1% 11.9% 29.9% 4.6% 26.1% 1.0% 22.2% 21.7% 21.5% -4.5% -4.0% -5.1% SOURCE: IBGE (Instituto Brasileiro de Geografia e Estatística) & INDEC (Instituto Nacional de Estadística y Cens

  19. Slide 19: Gross sales under banner by country

    Gross sales under banner by country Change (EURm) Q1 2018 % Change FX effect (ex-FX) Spain 1,310.8 57.8% -4.8% - -4.8% Portugal 191.3 8.4% -1.2% - -1.2% IBERIA 1,502.1 66.2% -4.3% - -4.3% Argentina 363.7 16.0% -15.3% -37.5% 22.2% Brazil 403.8 17.8% -19.8% -15.5% -4.3% EMERGING MARKETS 767.4 33.8% -1

  20. Slide 20: Q1 2018 results summary

    Q1 2018 results summary Change (EURm) Q1 2018 % Change FX effect (ex-FX) Net sales 1,877.6 100.0% -10.4% -9.3% -1.1% Adjusted EBITDA1 109.8 5.8% -10.7% -4.1% -6.6% D&A -57.3 -3.1% -0.8% -6.5% 5.7% Adjusted EBIT1 52.5 2.8% -19.5% -2.1% -17.4% Other items excluded from adjusted EBIT -24.9 -1.3% 98.9%

  21. Slide 21: Trade working capital

    Trade working capital Change (EURm) 31 March 2017 31 March 2018 Change (ex-FX) Inventories (A) 658.3 577.4 -12.3% -1.5% Trade & other receivables (B) 167.5 178.4 6.5% 19.8% Trade & other payables (C) 1,538.0 1,444.5 -6.1% 3.5% TRADE WORKING CAPITAL1 -712.2 -688.7 -3.3% 4.2% 1. Trade working capital

  22. Slide 22: Currency performance

    Currency performance % EUR/ARP 28.2 EUR/BRL 16.4 6.5 -2.5 -4.8 -7.4 -7.6 -12.2 -17.8 -19.7 -16.1 -30.9 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 SOURCE: Bloomberg average currency rates (a negative change in exchange rates implies a depreciation versus the Euro) / 22

  23. Slide 23: Gross Sales Under Banner & adj. EBITDA by segment

    Gross Sales Under Banner & adj. EBITDA by segment Q1 2017 Gross sales under banner Q1 2018 Gross sales under banner Iberia 62.7% Iberia 66.2% Emerging 37.3% Emerging 33.8% Q1 2017 adj. EBITDA Q1 2018 adj. EBITDA Iberia 81.9% Iberia 82.8% Emerging 18.1% Emerging 17.2% / 23

  24. Slide 24: PARQUE EMPRESARIAL DE LAS ROZAS Jacinto Benavente, 2 A Las Rozas (Madrid) Spain -

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

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