Eurocash S.A. · GPW:EUR
Eurocash — Q1 2017 Earnings Presentation
20 slides from Eurocash's earnings presentation, May 2017
Slide 1: 1Q 2017 Results
1Q 2Q 2017 RESULTS 2016 RESULTS DISCUSSION
Slide 2: 1Q 2017 Highlights
1Q 2017 Highlights GROWING INFLATION OFF-SET BY EASTER EFFECT EUROCASH SALES GREW BY 9.0% IN 1Q 2017 MAINLY FROM M&A EBITDA LOWER BY 10 M PLN, IMPACTED BY NEW PROJECTS AND ONE-OFF COSTS CASH & CARRY LFL AT -4.6%, DELIKATESY CENTRUM AT +8.6% IN 1Q 2017 FIRST 2 C&C STORES CLOSED IN 1Q, SALES IN LINE W
Slide 3: Macroeconomic outlook
Macroeconomic outlook Increasing food inflation in 1Q 2017 4% Inflation 3,4% 3% 2,0% 1,3% 2,0% 2% 1,0% 0,9% 0,9% 0,9% 0,9% 1,1% 0,6% 0,8% 0,6% 1% 0,1% 0,4% 0,2% 0% 0,5% -0,7% -1% -0,6% -0,9% -0,8% -0,9% -0,9% -0,8% -2% -1,5% -3% -2,1% -4% -3,7% -5% 1Q2015 2Q 3Q 4Q 1Q2016 2Q 3Q 4Q 1Q2017 CPI CPI - fo
Slide 4: FMCG market growth by 2.6%
FMCG market growth by 2.6% Small supermarkets continue to be the fastest growing channel on the market 15% FMCG market growth by channels (YoY, LTM Mar 2016 ) 13,6% 9,3% 10% 4,0% 4,8% 5% 0,9% 0,7% 0% -5% -2,8% -1,7% -1,9% -1,6% -1,9% -1,2% Small Grocers -40 Convenience 40-100 Small Supermarkets Supe
Slide 5: Eurocash Group sales growth
Eurocash Group sales growth supported by M&A and New Projects Sales development Sales of goods development 9,0% 8,5% 6 000 6,2% 1,5% -1,4% 2,2% 6 000 5 193 4 764 4 892 5 000 282 69 65 98 5 000 4 507 4 000 4 000 3 000 3 000 4 507 4 892 2 000 2 000 1 000 1 000 - 0 Total sales Sales of goods Eurocash M
Slide 6: Strong sales growth supported by M&A and New Projects
Strong sales growth …supported by M&A and New Projects 6,4% 1,8% 130,2% 159,4% 63,3% 3 500 3 200 3 009 3 000 Sales growth by segments 2 500 2 000 1 741 1 771 1 500 1 000 538 500 234 43 112 - ( 500) ( 263) ( 429) (1 000) Indenpendent Integrated wholesale Retail New projects Cons.Adj. wholesale 1Q2016
Slide 7: Retail segment
Retail segment Sales by formats No. of stores 6,6% 82,3% 500 465 450 250 M&A effect 206 400 200 350 160 300 248 150 131 139 250 200 100 88 150 116 100 50 50 0 0 Inmedio Delikatesy Centrum EKO Inmedio Delikatesy Centrum EKO Own Own 1Q 2016 1Q 2017 LFL in 1Q 2017: Inmedio +3.6% Delikatesy Centrum Own
Slide 8: Ind. Wholesale sales dynamic
Ind. Wholesale sales dynamic LFL Cash&Carry 15% 12,0% 10,8% 10,0% 10% 8,0% 5% 6,0% +4,2% 4,5% excl. Export & M&A 0% -1,3% 4,0% -4,0% -3,6% -4,6% 2,0% -5,2% -5% 0,0% -2,0% Cash&Carry Tobacco Alcohol Distribution -10% Q1 2016 Q2 Q3 Q4 Q1 2017 -4,0% -3,2% Cash&Carry LFL Cash&Carry closed 2 stores in 1Q
Slide 9: Integrated Wholesale
Integrated Wholesale LFL Delikatesy Centrum 14,0% 12,7% 15% 12,0% 13% 10,0% 11% 8,2% 8,4% 8,6% 8,0% 9% 6,4% 6,0% 7% +4,1% 4,4% excl. export 5% 4,0% 2,7% 2,4% 2,2% 3% 2,0% 2,0% 1,2% 0,8% -0.6% 1% 0,0% total sales -1% Delikatesy Centrum Eurocash Food Service Q1 2016 Q2 Q3 Q4 Q1 2017 Distribution Delik
Slide 10: 1Q 2017 Financial summary
1Q 2017 Financial summary Growth projects affecting profitability % of Sales % of Sales PLN m 1Q 2016 1Q 2017 Y/Y Change 1Q 2016 1Q 2017 Net sales 4 764 5 193 9% Gross profit 462 547 9,7% 10,5% 18% EBITDA 47 37,5 1,0% 0,7% -21% EBIT 7 -7 0,1% -0,1% -205% Profit before tax 3 -16 0,1% -0,3% -581% Net
Slide 11: New Projects impacting EBITDA
New Projects impacting EBITDA EBITDA by segments 60 2% 47 48 50 40 -33% 30 19 20 12 47% 6 9 10 119% -5% 0 -10 -7 -20 -16 -17 -16 -30 Independent wholesale Integrated wholesale Retail New projects Other incl. CHO 1Q2016 1Q2017 Change of sales Key factors impacting EBITDA: New Projects: -PLN 9m In
Slide 12: Cash Flow
Cash Flow Operational CF at 74% EBITDA level Cash conversion cycle 40 29 29 30 28 PLN m 1Q 2016 1Q 2017 27 20 Net operating cash flow 47 (80) 20 20 18 19 22 0 Net profit (loss) before tax 3 (16) Depreciation 41 44 -20 (21) (20) (18) (18) (18) Change in working capital 11 (101) -40 Other (8) (7) (64)
Slide 13: Net Debt vs. EBITDA
Net Debt vs. EBITDA 700 Net Debt* vs. 12M EBITDA in 1Q 2017 1,6 600 584 1,4 1,36 500 481 477 466 1,2 440 431 1,0 400 317 324 0,8 300 0,74 240 0,66 231 1,07 excl. M&A 0,6 200 0,50 0,50 0,4 100 0,2 0 0,0 1Q'16 2Q 3Q 4Q 1Q'17 LTM EBITDA (PLN m) NET DEBT (PLN m) NET DEBT / EBITDA Increase of Net Debt in
Slide 14: Cash&Carry restructuring
Cash&Carry restructuring Cash&Carry chain optimisation First 2 closures in 1Q, total 3 locations closed until now 70% of closed stores sales recaptured by other C&C stores Further 7 locations analysed to be closed in 2017 (2H) Main cost – loss on fixed assets, no significant impact on P&L expected I
Slide 15: Fresh project
Fresh project High quality of fresh products - strengthening brand positioning Key elements: Project roll-out Centralizing deliveries of Centralized fresh supply chain is already fresh categories (meat, cold available for 690 stores By the end of 2017 another 250 stores cuts, fruit&veg, fish) (mainl
Slide 16: Organic expansion and growth potential
Growth potential • Franchised supermarkets in Delikatesy Centrum Organic and Eurocash Distribution • Integration of acquired businesses (EKO) expansion • Market share in specialized distribution • Leveraging logistic assets into fresh distribution Category • New marketing tools – Wine Factory, Beer
Slide 17: 1Q 2017 Financial Summary P&L
1Q 2017 Financial Summary P&L PLN m 1Q 2017 1Q 2016 Y/Y Change Sales revenues (traded goods, materials) 5 193 4 764 9% Gross profit on sales 547 462 18% Gross profitability on sales (%) 10,5% 9,7% 0,82p.p. EBITDA 37 47 -21% (EBITDA margin %) 0,7% 1,0% -0,27p.p. EBIT -7 7 -205% (EBIT margin %) -0,1%
Slide 18: 1Q 2017 Financial Summary Cash Flow
1Q 2017 Financial Summary Cash Flow PLN m 1Q 2017 1Q 2016 Change Net operating cash flow, including: (80) 47 -127 Net profit (loss) before tax (16) 3 -20 Depreciation 44 41 4 Change in working capital (101) 11 -112 Change in inventories -119 -54 -65 Change in trade receivables 103 4 98 Change in tra
Slide 19: 1Q 2017 Financial Summary Balance Sheet
1Q 2017 Financial Summary Balance Sheet PLN m 31 MAR 2017 31 DEC 2016 Change [%] Change Non-current assets 2 551 2 321 9,9% 230 Current assets 3 254 3 201 1,7% 54 Inventories 1 270 1 089 16,7% 181 Trade receivables 1 607 1 748 -8,1% -141 Cash and cash equivalents 138 162 -14,7% -24 Total Assets 5 80
Slide 20: For more information please contact
For more information please contact: Jan Domański Investor Relations & M&A Director [email protected] Mobile: +48 507 010 095 20