Jeronimo Martins, Sgps S.a. · EURONEXT:JMT
Jeronimo Martins, Sgps — Jerónimo Martins — Investor Day (November 2011)
34 slides from Jeronimo Martins, Sgps's investor day presentation, Nov 2, 2011
Slide 1: Investor's Day November 2011
November 2011 INVESTOR'S Lisbon | Portugal DAY ©) JERONIMO MARTINS
Slide 2: Index
INDEX 1. THE GROUP TODAY 2. STRATEGIC VISION 3. STRATEGIC PRIORITIES 3.1 Delivering Biedronka Potential 3.2 Secure Long Term Growth 4. EXPLORING PORTFOLIO’s FULL POTENTIAL 1. THE GROUP TODAY 5. OUTLOOK AND FINAL REMARKS 6. APPENDIX 2
Slide 3: 1. The Group Today
1. THE GROUP TODAY ©) JERONIMO MARTINS Movember 2011 INVESTOR'S Lsken| Portion! TY ANY
Slide 4: Strong growth momentum
1. THE GROUP TODAY Key Figures TODAY … SALES APPROACHING EURO 10 BN EBITDA OVER EURO 700 MN Strong growth (*) CASH FLOW c. EURO 400 MN momentum emerging through WITH A CLEAR GROWTH ENGINE … increasing cash BIEDRONKA GROWTH IN THE LAST 5Y (Euros) flow SALES CAGR +30% generation EBITDA CAGR + 46% 744
Slide 5: Operating Profile: Our Approach to Value Food Retail
1. THE GROUP TODAY Operating Profile OUR APPROACH TO VALUE FOOD RETAIL Strong Value Approach Leadership Dynamics Value and Mass Market define our presence The success of our formats is leveraged on in the market: leadership… 1. Food Solutions Provider 1. Trust / Awareness / Reliability 2. Price / Co
Slide 6: Operating Profile: Value Oriented Food Formats
1. THE GROUP TODAY Operating Profile VALUE ORIENTED FOOD FORMATS • Leader in food retail in Poland • Leader in food solutions in Portugal • Leader in the C&C market in (c.11% market share) (c.19% market share) Portugal (c.39% market share) • Net Sales (‘10) Euro 4,807 mn • Net Sales (‘10) Euro 2,749
Slide 7: 2. Strategic Vision
2. STRATEGIC VISION ©) JERONIMO MARTINS Movember 2011 INVESTOR'S Lsken| Portion! TY ANY
Slide 8: Jerónimo Martins's Strategic Priorities
2. STRATEGIC VISION Strategic Priorities Jerónimo Martins’s Strategic Priorities 1. DELIVERING BIEDRONKA POTENTIAL 2. SECURE LONG TERM GROWTH 8
Slide 9: Strategic Priorities - Delivering Biedronka Potential
2. STRATEGIC VISION Strategic Priorities - Delivering Biedronka Potential Maximize Biedronka growth (Expansion + LFL) 1. DELIVERING BIEDRONKA POTENTIAL Reinforce leadership in the country Expand cash flow generation Biedronka has today: •Market leadership with c.11% of market share, with a sizable g
Slide 10: Strategic Priorities – Secure Long Term Growth
2. STRATEGIC VISION Strategic Priorities – Secure Long Term Growth 2. SECURE LONG TERM GROWTH New Growth Pillar Chosen: Strong Cash Flow generation allows to take next step of our internationalization process COLOMBIA One format approach targeting large scale Key premises for our Focus on our streng
Slide 11: 3. Strategic Priorities: 3.1 Delivering Biedronka Potential
3. STRATEGIC PRIORITIES 3.1 Delivering Biedronka Potential 11
Slide 12: Delivering Biedronka Potential
3.1. DELIVERING BIEDRONKA POTENTIAL Maximize Biedronka growth (Expansion + LFL) DELIVERING BIEDRONKA Reinforce leadership in POTENTIAL the country Expand cash flow generation 12
Slide 13: Maximize Biedronka Growth – Market Potential
3.1. DELIVERING BIEDRONKA POTENTIAL Maximize Biedronka Growth – Expansion + LFL MARKET POTENTIAL MARKET POTENTIAL TO FOR NEW LOCATIONS INCREASE THE AVERAGE TICKET • Traditional retail still represents close to • Low level of food spending 50% of the market Consumption Expenditure on Food and non-alc
Slide 14: Maximize Biedronka Growth – Our Plan
3.1. DELIVERING BIEDRONKA POTENTIAL Maximize Biedronka Growth – Expansion + LFL OUR PLAN • Progressive acceleration of expansion backed by the strengthening of the decentralized regional structure 16 3,200 16 2,800 3,000 14 From 1,649 to 3,000 stores 2,400 12 2,000 9 10 Supported by 16 regions 1,600
Slide 15: Reinforce Leadership in the Country
3.1. DELIVERING BIEDRONKA POTENTIAL Reinforce Leadership in the Country Biedronka’s leadership reinforces its economies of scale LFL sales growth Outperforming LFL sales growth will be driven by: - Price leadership outperforming - Responsiveness to customers’ needs peers - Strong brand awareness + F
Slide 16: Expand Cash Flow Generation
3.1. DELIVERING BIEDRONKA POTENTIAL Expand Cash Flow Generation Cash Flow Maximization driven by Top Line Growth Expansion Strong SALES GROWTH will maximize cash generation from Top Line Growth WORKING CAPITAL Market Leadership and together with the lowest cost structure will Cost Advantage maximize
Slide 17: 3.2 Secure Long Term Growth
3. STRATEGIC PRIORITIES 3.2 Secure Long Term Growth 17
Slide 18: Next step in our internationalization process - Colombia
3.2. SECURE LONG TERM GROWTH Next step in our internationalization process - COLOMBIA OUR OPERATING GROUP RISK OUR DECISION STRENGTHS CRITERIA Identifying Profile Under Identifying Business Control Market Opportunity Opportunity 18
Slide 19: Our Decision Criteria
3.2. SECURE LONG TERM GROWTH Our Decision Criteria Defined criteria in the selection of our new growth pillar… Bare Minimum Criteria Democratic and strong Government institutions, with functioning Democracy & Rule of Law judicial system, respecting the rule of law namely in private investment Key De
Slide 20: Our Decision Criteria … and how we see those criteria being met
3.2. SECURE LONG TERM GROWTH Our Decision Criteria … and how we see those criteria being meet by our choice - COLOMBIA More than sixty years of continuous democratic process. Defined by the World Economic Forum as one of the best countries to do Democracy & Rule of Law business Second largest countr
Slide 21: Our Operating Strengths: Opportunity in Colombia's mass market
3.2. SECURE LONG TERM GROWTH Our Operating Strengths Identified areas of opportunity in Colombian’s mass market… Dominance of the - C.60% of the food retail market operated through traditional street markets and 20% through small non Traditional Retail organized players - All players in the market,
Slide 22: JM in Colombia
3.2. SECURE LONG TERM GROWTH Our Operating Strengths JM in Colombia … We are launching our business structure in Colombia; our initial priorities will be: - Fine-tuning value proposition - Expansion - first stores to be opened in 2012 Our strong VALUE and LOCAL approach demands: - Adapt store format
Slide 23: JM in Colombia – Management Team Expectations
3.2. SECURE LONG TERM GROWTH Group Risk Profile JM in Colombia – Management Team Expectations • Target to reach Top 3 in Food Retail Market by year 5 • Capex allocation for the next three years (‘12-’14): c.Euro 400 mn • Group Gearing - positive net debt expected by 2014 Group Risk Profile Maintaine
Slide 24: 4. Exploring Portfolio's Full Potential
4. EXPLORING PORTFOLIO’s FULL POTENTIAL 24
Slide 25: Addressing the Portuguese Market
4. EXPLORING PORTFOLIO’s FULL POTENTIAL Addressing the Portuguese Market Increase Market Share to Enhance Profitability Pingo Doce Key approach focused on value, particularly in view of the difficult Recheio macro situation Manufacturing • Increase MARKET SHARES benefiting from unique value In the c
Slide 26: Reaping Full Potential of Polish Retail Market
4. EXPLORING PORTFOLIO’s FULL POTENTIAL Reaping Full Potential of Polish Retail Market Testing new retail opportunities in Poland Hebe Drugstore: Mass market concept addressing home, personal care and cosmetics assortment 5 stores under test Fine-tuning the business model 26
Slide 27: 5. Outlook and Final Remarks
5. OUTLOOK AND FINAL REMARKS 27
Slide 28: Outlook 2011-2014
5. OUTLOOK AND FINAL REMARKS Outlook 2011-2014 For 2011, we maintain our guidance of double digit sales growth (constant exchange rate) and EBITDA growing above sales Over 2012-2014 • We expect to fully reap the benefits of Biedronka growth in terms of market penetration and scale • Consolidated Sal
Slide 29: Final Remarks
5. OUTLOOK AND FINAL REMARKS Final Remarks Our 3,000 stores target (by 2015) in Poland will require continued strong focus in the next four years We have Balance Sheet and Management Teams well prepared to accomplish the above mentioned target and to launch next growth paths in our internationalizat
Slide 30: 6. Appendix
6. APPENDIX ©) JERONIMO MARTINS Movember 2011 INVESTOR'S Lsken| Portion! TY ANY
Slide 31: Outlook 2012-2014: Biedronka
OUTLOOK 2012-2014 Biedronka • LFL targeted to be maintained at double digit along the period • A minimum of 850 openings over the period • 7 new DC’s over the period (6 regions) • CAPEX to reach c.Euro1.6 bn in the 3Y period 31
Slide 32: Outlook 2012-2014: Pingo Doce
OUTLOOK 2012-2014 Pingo Doce • Leverage on differentiation and awareness to increase market share • Strong focus on returns – Cost reduction, Working Capital efficiency • LFL sales growth expected to outperform the sector • C.5 new stores p.a. • C.10 remodellings p.a. • Stable to positive EBITDA mar
Slide 33: Outlook 2012-2014: Recheio
OUTLOOK 2012-2014 Recheio • Market share increase supported by differentiation • LFL sales growth expected to outperform the sector • Stable EBITDA margin • 2 new stores over the 3Y period • 5 revampings over the 3Y period • Capex c. Euro50 mn in the 3Y period 33
Slide 34: Investor's Day November 2011
November 2011 INVESTOR'S Lisbon | Portugal DAY ©) JERONIMO MARTINS