Distribuidora Internacional de Alimentacion SA · BME:DIA

Distribuidora Internacional de Alimentacion SA — Q3 2017 Earnings Presentation

28 slides from Distribuidora Internacional de Alimentacion SA's earnings presentation, Oct 30, 2017

  1. Slide 1: Q317 Results

    Q317 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 Key messages 4 02 Financial review 6 03 Closing remarks 17 04 Q&A 19 05 Appendix 20 /3

  4. Slide 4: Key messages

    01 Key messages

  5. Slide 5: Key messages

    Key messages 1 2 3 4 5 6 7 Focused in our Significant changes Commitment Revision of our Acceleration of Brazil and Efficient use of strategy: in trading to our targets for store upgrade Argentina: resources. environment in customers on FY2017. plan and price lower sales Net debt • Customer- centric

  6. Slide 6: Financial review

    02 Financial review

  7. Slide 7: Highlights 9M 2017

    Highlights 9M 2017 9M 2017 gross sales under banner (ex-currency) 1.4% up and 0.5% growth in Q3 2017. 3.2% LFL sales growth in 9M 2017, impacted in Q3 2017 by lower inflation and tougher competitive environment. Online sales in Spain jumped by 2.9x to EUR40.2m in the first nine months of 2017. Adjus

  8. Slide 8: DIA: Q3 2017 P&L summary

    DIA: Q3 2017 P&L summary Change (EURm) Q3 2017 % Change FX effect (ex-FX) Net sales 2,172.6 100.0% -4.1% -3.8% -0.3% Adjusted EBITDA1 153.3 7.1% -5.5% -1.6% -3.9% D&A -59.1 -2.7% -0.1% -2.0% 1.9% Adjusted EBIT1 94.2 4.3% -8.6% -1.4% -7.2% Non-Recurring items -24.3 -1.1% 44.4% -3.0% 47.4% EBIT 69.9 3

  9. Slide 9: Iberia: lower inflation and tough competitive environment

    Iberia: lower inflation and tough competitive environment Change -1.5% -2.0% -1.0% +0.2% -4.3% EURm 1,760.6 -26.4 -34.1 -17.0 +2.6 1,685.7 Q3 2016 LFL Space Temporary Calendar effect Q3 2017 closures Strong deflation in seasonal products. Record of 271stores upgraded in Iberia in Q3 2017 impacts sal

  10. Slide 10: Iberia: P&L summary

    Iberia: P&L summary (EURm) Q3 2017 Change 9M 2017 Change Gross sales under banner 1,685.7 -4.3% 4,928.3 -3.4% Net sales 1,402.7 -5.2% 4,120.1 -4.3% Adjusted EBITDA 116.7 -10.8% 341.0 -5.4% Adj. EBITDA margin 8.3% -52 bps 8.3% -10 bps D&A (44.1) -4.4% (128.4) -5.5% Adjusted EBIT 72.6 -14.2% 212.6 -5.

  11. Slide 11: Emerging Markets: +9.1% sales growth in Q3 2017

    Emerging Markets: +9.1% sales1 growth in Q3 2017 Change +6.1% +3.0% +9.1% -10.7% -1.6% EURm +57.1 +28.1 1,021.3 -100.5 936.1 920.8 Q3 2016 LFL Space Q3 2017 (in FX & calendar Q3 2017 local currency) effect -4.5% average monthly deflation in Brazil in Q3 2017. Sustained market share gains both in Arg

  12. Slide 12: Emerging Markets: P&L summary

    Emerging Markets: P&L summary Change Change (EURm) Q3 2017 Change 9M 2017 Change (ex-FX) (ex-FX) Gross sales under banner 920.8 -1.6% 9.5% 2,805.7 11.4% 11.2% Net sales 769.9 -2.1% 8.8% 2,340.1 11.1% 10.4% Adjusted EBITDA 36.7 16.3% 24.7% 90.7 27.7% 25.2% Adj. EBITDA margin 4.8% +75 bps 3.9% +50 bps

  13. Slide 13: Operating margins: Adj. EBITDA and Adj. EBIT

    Operating margins Iberia Emerging DIA Group Adj. EBITDA 8.8% 4.8% 7.2% 7.1% 4.0% 8.3% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Iberia Emerging DIA Group Adj. EBIT 5.7% 2.8% 5.2% 4.6% 2.4% 4.3% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 / 13

  14. Slide 14: EUR80m net debt reduction, more efficient capex approach

    EUR80m net debt reduction, more efficient capex approach EURm Net debt EURm Capex 1,221.3 1,141.1 261.2 2.0x 218.7 1.8x September 2016 September 2017 9M 2016 9M 2017 Good performance in TWC despite sales deceleration; double-E project delivering strong improvement in inventories in Spain. More effic

  15. Slide 15: Cash From Operations evolution

    Cash From Operations(1) evolution EURm 153.9 Cash From Operations in 123.7 9M 2017 grew by EUR30.2m versus the same period last year. 9M 2016 9M 2017 1. Defined as adjusted EBITDA - Non-recurring cash items - Capex; on organic basis / 15

  16. Slide 16: Revised outlook for full year 2017

    Revised outlook for full year 2017 OLD What has changed? NEW  Deflation Gross sales under banner (1) Mid-single-digit  Temporary store closures Low-single-digit growth due to upgrades growth  Less openings  Lower sales than expected Mid-single-digit Adjusted EBITDA Growth  Price investments in

  17. Slide 17: Closing remarks

    03 Closing remarks

  18. Slide 18: Our priorities

    Our priorities We are working for the long-term... ...with a clear short-term action plan. DIA continues to implement its strategy: Our commitments for Q4 2017: • New organization with the customer at the • Positive LFL in Iberia. center of all decisions.  Already achieved in first weeks of October

  19. Slide 19: Q&A

    04 Q&A

  20. Slide 20: Appendix

    04 Appendix

  21. Slide 21: Gross sales under banner by country

    Gross sales under banner by country Change (EURm) Q3 2017 % Change FX effect (ex-FX) Spain 1,453.9 55.8% -4.8% - -4.8% Portugal 231.8 8.9% -0.4% - -0.4% IBERIA 1,685.7 64.7% -4.3% - -4.3% Argentina 426.5 16.4% 1.3% -21.9% 23.2% Brazil 494.3 19.0% -4.1% -2.5% -1.6% EMERGING MARKETS 920.8 35.3% -1.6%

  22. Slide 22: Sustained deceleration of food inflation in Emerging Markets

    Sustained deceleration of food inflation in Emerging Markets National Food Inflation in Brazil 16.7% 11.9% 4.6% 1.0% -4.5% Source: IBGE (Instituto Brasileiro de Geografia e Estatística) Average on monthly data of the quarters / 22

  23. Slide 23: DIA Group adjusted EBITDA margin evolution

    DIA Group adjusted EBITDA margin evolution (1) +0.7% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Tough comparable base in Q4 2017 due to extraordinary high margins in Q4 2016. 1. Adj. EBITDA margin over net sales evolution compared to same period previous year (in p.p.) / 23

  24. Slide 24: Trade working capital

    Trade working capital Change (EURm) 30 September 2017 Change (ex-FX) Inventories (A) 626.6 -0.5% 3.1% Trade & other receivables (B) 294.9 2.3% 4.6% Trade & other payables (C) 1,656.1 2.6% 5.8% TRADE WORKING CAPITAL(1) (2) -734.6 5.5% 8.7% 1. Trade working capital defined as A+B-C 2. Non-recourse fac

  25. Slide 25: Currency performance

    Currency performance Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 28.2% 18.6% 16.4% 8.0% EUR/ARP EUR/BRL -2.5% -4.8% -4.8% -7.6% -17.8% -34.1% -38.4% -37.4% Bloomberg average currency rates (a negative change in exchange rates implies a depreciation versus the Euro) / 25

  26. Slide 26: Gross Sales Under Banner & adj. EBITDA by segment

    Gross Sales Under Banner & adj. EBITDA by segment Q3 2016 Gross sales under banner Q3 2017 Gross sales under banner Iberia 65.3% Iberia 64.7% Emerging 34.7% Emerging 35.3% Q3 2016 adj. EBITDA Q3 2017 adj. EBITDA Iberia 80.5% Iberia 76.1% Emerging 19.5% Emerging 23.9% / 26

  27. Slide 27: 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 Q3 2017 Reported data / 27

  28. Slide 28: 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 - Postcode: 28232 +34 91 398 54 00 www.diacorporate.com

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