Jeronimo Martins, SGPS S.A. · EURONEXT:JMT
Jeronimo Martins, SGPS — Jerónimo Martins — Q1 2009 Earnings Presentation
24 slides from Jeronimo Martins, SGPS's earnings presentation, May 13, 2009
Slide 1: Q1 Results Presentation
Q1 RESULTS PRESENTATION 09 May 13th, 2009
Slide 2: 2008 - A milestone in JM's strategy
2008 - A milestone in JM’s strategy …2006 2006-2008 2008 Consolidating drivers Building scale as a Scale leveraged into of business models, key element of operating launching the basis of competitiveness and performance differentiation to profitability create leading Expansion remained positions in
Slide 3: 2008 - The Environment
2008 - The Environment The year 2008 represented a turning point for the economies around the World… • Macroeconomic environment was affected in many different ways: Inflation in the beginning of the year, financial markets crisis, consumption slowdown and sharp deceleration of inflation by the year
Slide 4: Group Structure 2008 YE
Group Structure 2008 YE (stores as at March 31, 2009) Jerónimo Martins, SGPS S.A. Market Cap. = Euro 3.0 bni) Sales 08FY= Euro 6,894 mn EBITDA 08FY = Euro 473 mn (6.9%) Inv. Capital 08 YE = Euro 1,777 mn Food Distribution Manufacturing Services Portugal Portugal 51% 100% 100% 45% Retail Wholesale Re
Slide 5: P&L Q1 09 Consolidated Results
P&L Q1 09 C O N S O LID A T E D R E S ULT S Q1 09 Q1 08 T ho . E uro % T ho . E uro % Δ% N e t S a le s & S e rv ic e s 1,6 0 5 ,13 1 1,5 0 4 ,9 11 6 .7 % To tal M argin 375,966 23.4% 332,322 22.1% 13.1% Operating Co sts -275,278 -17.1% -240,431 -16.0% 14.5% E B IT D A 10 0 ,6 8 8 6 .3 % 9 1,8 9 0 6
Slide 6: Consolidated Sales Q1 09
Consolidated Sales Q1 09 Consolidated Sales (Euro Million) 1,605 Consolidated Net Sales increased 20.3% 1,505 (excl. F/X effect), even with the negative calendar impact from Easter 49.6% Biedronka 50.3% +5.2% Contribution to Consolidated Sales Growth (Euro Million) 33.8% 35.3% Retail Portugal +11.2%
Slide 7: Scale benefits reflected on EBITDA performance
Consolidated EBITDA Q1 09 Scale benefits reflected on EBITDA performance • +9.6% growth (+23.3% excl. f/x effect), reaching Euro100.7 mn • EBITDA margin increased from 6.1% to 6.3% of sales • Retail in Portugal was the area where sourcing benefits and integration synergies were already visible 7
Slide 8: Pingo Doce Q1 09
Pingo Doce Q1 09| A new platform of scale … … building The supermarket chain in Portugal • Focused on food and key differentiation factors - Price / Private brand / Perishables to lead the consumer preference • By the end of Q1 09: 334 stores - 350 thousand sqm of selling area 9 87 new supermarkets
Slide 9: Biedronka Q1 09
Biedronka Q1 09| A new platform of scale … … strengthening the leadership in Poland • Business model adapted to the Polish market, benefiting from increases in both number of visitors and average ticket • Expansion as a key priority 9 311 new stores in Q1 09 vs. Q1 08 9 By the end of Q1 09: 1,372 st
Slide 10: Recheio Q1 09
Recheio Q1 09 | A unique business model in Portugal… …benefiting from a stronger leadership • Focus on [ food + price leadership + complete offer to HoReCa] is allowing market share improvements • Total sales growth Q1 09: +5.2% 9Q1 09: two new stores of which one was acquired in November 2008 9LFL
Slide 11: 2009 Outlook
2009 Outlook • Prudent approach regarding expansion and capex plans • Strict monitoring of the quality and funding of the Group’s expansion plans 9 Each business area expected to accomplish expansion with their own cash generation and adjust plans if needed 9 Biedronka to open 150 stores and Pingo D
Slide 12: Disclaimer
Disclaimer This presentation includes forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those stated in any forward- looking statement based on a number of factors. Jerónimo Martins assumes no obligation to update the information contained in
Slide 13: Appendix
APPENDIX 13
Slide 14: Group Structure 2008
Group Structure 2008 Sales EBITDA Nr. Sales Area Sales/ LFL o o çã Stores sqm ¬% çã Ownership Consolidation (Million Euro) Margin (sqm) da ipa * oli rtic ns 07 08 0607 ∠ ⋅¬% % 08 07 08 08 08 08/07 Co Pa 07 06 Supermarkets (Leader) ** 11.2% 51% I 1,944.6 1,558.0 24.8% 334 350,396 n.a. Portugal Mainla
Slide 15: Sales Breakdown Q1 09
Sales Breakdown Q1 09 N E T S A LE S A N D S E R V IC E S Q1 09 Q1 08 Δ% E ur T ho . % to tal E ur T ho . % to tal P ln E uro Retail M ainland 612,167 38.1% 550,301 36.6% 11.2% Cash & Carry M ainland 153,637 9.6% 146,024 9.7% 5.2% M adeira 28,522 1.8% 29,813 2.0% -4.3% P o land - B iedro nka 795,657
Slide 16: Sales Growth Q1 09
Sales Growth Q1 09 SALES GROWTH Total Sales Growth LFL Sales Growth Q1 09 Q1 09 JMR 11.2% ‐4.6% Supermarkets(<1,500sqm) 23.6% ‐0.7% Compacts(>1,500sqm) ‐2.7% ‐11.1% Hypers ‐12.9% ‐10.1% * Recheio 5.2% 1.8% Madeira ‐4.3% ‐4.4% Biedronka Euro 5.2% PLN 32.3% 7.7% Manufacturing ‐8.2% ‐8.2% Mkt. Repr. an
Slide 17: Store Network Q1 09
Store Network Q1 09 NUMBER OF STORES Openings Closings Network 08 YE Q1 09 Q1 09 Q1 09 Q1 08 JMR 343 1 0 344 257 Supermarkets (<1,500sqm) 291 1 0 292 206 Compacts (>1,500sqm) 43 0 0 43 42 Hypers 9 0 0 9 9 Recheio 35 0 0 35 33 Madeira 15 0 0 15 15 Biedronka 1,359 27 14 1,372 1,061 1,766 SALES AREA (s
Slide 18: Balance Sheet Q1 09
Balance Sheet Q1 09 BALANCE SHEET (Thousand Euro) Q1 09 2008 YE Q1 08 Net Goodwill 698,499 734,126 419,131 Net Fixed Assets 1,888,071 1,967,459 1,790,099 Net Working Capital ‐870,293 ‐1,065,131 ‐893,817 Others 136,263 140,521 128,511 Invested Capital 1,852,541 1,776,975 1,443,924 Debt 910,058 946,01
Slide 19: 2008 Key Figures
2008 Key Figures (Euro Mio) 2007 2008 Net Sales 5,349.7 +28.9 % 6,893.7 EBITDA 351.4 +34.6 % 473.0 Net att. Results 131.3 +24.3 % 163.2 EPS 0.26 Net Debt 845.9 Gearing 90.8% Gross dividend 0.096 +14.6 % 0.11 proposal (Euro) 19
Slide 20: Consolidated Performance 2008
Consolidated Performance 2008 | A new platform of scale… … boosting sales and results 2008 FY 2007 FY Mio Euro % Mio Euro % Δ% Net Sales & Services 6,894 5,350 28.9% Total Margin 1,582 22.9% 1,225 22.9% 29.2% Operating C osts -1,109 -16.1% -873 -16.2% 27.0% EBITDA 473 6.9% 351 6.6% 34.6% Depreciatio
Slide 21: Balance Sheet 2008
Balance Sheet 2008 | Appropriate capex targets and strong operating performance … … maintaining a sound financial structure (Million Euro) 2008 YE 2007 YE Net Goodwill 734 416 Net Fixed Assets 1,967 1,751 Net Working C apital -1,065 -863 Others 141 140 Invested Capital 1,777 1,443 Debt 946 713 Leasi
Slide 22: Sales 2008
Sales 2008 | A new platform of scale… Consolidated Sales … fuelled by main formats outperforming (Euro Mio) the market LFL Sales Growth (%) 21.1 20.2 6,894 2007 2008 11.2 5,350 8.7 3,521 3.6 4.5 +47.2% Hypers 0.7 1.0 Biedronka 2,392 Pingo Doce Compacts Recheio Biedronka -4.3 -3.7 Retail in 2,310 ...
Slide 23: EBITDA 2008
EBITDA 2008 | A new platform of scale… … driving operating leverage EBITDA grew 34.6%, above sales growth Consolidated EBITDA (Euro Mio) EBITDA Mg 08 07 473 JMR 6.7% 7.0% Impacted by Plus integration 351 242 Recheio 6.1% 6.0% Reflecting a lean cost structure and solid LFL growth +72.4% Biedronka 140
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