Jeronimo Martins, SGPS S.A. · EURONEXT:JMT
Jeronimo Martins, SGPS — Jerónimo Martins — FY2008 Earnings Presentation
25 slides from Jeronimo Martins, SGPS's earnings presentation, Mar 6, 2009
Slide 1: 2008 Results Presentation
08 RESULTS PRESENTATION March 6th, 2009
Slide 2: 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 +14.6 % 0.096 0.11 proposal (Euro) 2
Slide 3: 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 4: 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 5: Sales: A new platform of scale
Sales | 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 ... and
Slide 6: Pingo Doce: A new platform of scale
Pingo Doce| A new platform of scale … … building The supermarket chain in Portugal Net Sales (Euro Mio) 1,944 LFL Sales Growth* 454 14.8% 131 1,490 98 12.5% 124 +31.0% 11.2% 10.7% 1,137 +11.5% 7.8% +8.6% +10.9% '07 LFL PD stores ex-Plus '08 PD Compacts '08 New 1Q08 2Q08 3Q08 4Q08 08FY New/Revamped P
Slide 7: Biedronka: A new platform of scale
Biedronka| A new platform of scale … … strengthening the leadership in Poland Net Sales (PLN Mio) LFL Sales Growth 1,277 360 12,380 26.5% 1,724 22.4% 22.5% 9,019 +37.3% 20.2% +4.0% 11.7% +14.2% +19.1% Bied Stores 1Q08 2Q08 3Q08 4Q08 08FY '07 LFL ex-Plus '08 New/Revamped • Business model adapted to t
Slide 8: Recheio: A unique business model in Portugal
Recheio | A unique business model in Portugal… …benefiting from a stronger leadership LFL Sales Growth Sales by Segment 6.8% 5.0% 4.5% 16% 4.2% 44% HoReCa 1.7% Traditional Retailers Others 40% 1Q08 2Q08 3Q08 4Q08 08FY • Focus on [ food + price leadership + complete offer to HoReCa] is allowing marke
Slide 9: Manufacturing: Focus on key categories
Manufacturing | Focus on key categories… … to defend leading brands in the portfolio Sales Breakdown • Sales growth of 3.1% 5% • Good performance in main categories 18% • Adjustments in pricing policies affected volumes in some categories 52% • Innovation in key categories remains 25% top priority F
Slide 10: Consolidated Performance
Consolidated Performance | 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% Depreciation -15
Slide 11: EBITDA: A new platform of scale
EBITDA | 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 Bied
Slide 12: Capex: Clear priorities
Capex | Clear priorities… … focused on expansion in main retail models Capex in 2008 reached Euro874.2 Mio 12% 9% 3% 2% 58% 29% 50% 37% Expansion Portugal Expansion Poland Retail Mainland Biedronka Other Inv. Portugal Other Inv. Poland C&C Others 12
Slide 13: Balance Sheet
Balance Sheet | 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 Leasings 1
Slide 14: 2008 established strong foundations to face the new environment
2008 established strong foundations to face the new environment… …Strong business models, 2,000 20% 1,762 1,800 18% 1,600 1,510 16% 1,400 14% Balanced financial structure, 1,200 12% 1,000 10% 900 846 420% 800 8% 800 370% 600 6% 700 320% 400 4% 579 600 200 2% 270% 500 0 0% 220% 400 2007 2008 170% 300
Slide 15: 2009 Outlook
2009 Outlook • Considering the uncertainty in the macroeconomic conditions and the volatility in the evolution of key variables (inflation, F/X rate…), the Management is taking a prudent approach regarding expansion and capex plans • In 2009, the quality and funding of the Group’s expansion plans wi
Slide 16: 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 17: Q&A
Q&A 17
Slide 18: Appendix
APPENDIX 18
Slide 19: Group Structure
Group Structure Jerónimo Martins, SGPS S.A. Market Cap. = Euro 2 bni) Sales 08= Euro 6,894 mn EBITDA 08 = Euro 473 mn (6.9%) Inv. Capital 08 = Euro 1,777 mn Food Distribution Manufacturing Services Portugal Portugal 51% 100% 100% 45% Retail Wholesale Retail Unilever 100% JMD (Agency and Portugal Por
Slide 20: Group Structure by Business
Group Structure 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 Mainland Mi
Slide 21: Sales Breakdown
Sales Breakdown 2008 2007 Δ% Tho. Euro % total Tho. Euro % total Pln Euro Retail Mainland 2,503,354 36.3% 2,111,501 39.5% 18.6% Cash & Carry Mainland 654,484 9.5% 626,053 11.7% 4.5% Madeira 128,387 1.9% 123,265 2.3% 4.2% Poland - Biedronka 3,520,934 51.1% 2,392,282 44.7% 37.3% 47.2% Manufacturing 25
Slide 22: Store Network
Store Network NUMBER OF STORES Openings Closings Network 07 YE Q1 08 Q2 08 Q3 08 Q4 08 08 FY Q1 08 H1 08 9M 08 08 FY Pingo Doce* 210 4 78 9 40 7 211 287 295 334 Feira Nova 46 0 0 0 0 37 46 45 43 9 Hypers 9 0 0 0 0 0 9 9 9 9 Compacts 37 0 0 0 0 37 37 36 34 0 Recheio 33 0 0 1 1 0 33 33 34 35 Madeira 1
Slide 23: Sales Growth
Sales Growth SALES GROWTH Total Sales Growth LFL Sales Growth Q1 08 Q2 08 H1 08 Q3 08 9M 08 Q4 08 08 FY Q1 08 Q2 08 H1 08 Q3 08 9M 08 Q4 08 08 FY Pingo Doce 29.7% 30.8% 30.3% 37.4% 32.9% 45.1% 36.3% 14.8% 12.5% 13.6% 10.7% 12.5% 7.8% 11.2% Hypers 2.8% ‐4.4% ‐0.9% ‐2.8% ‐1.6% ‐8.5% ‐3.7% 2.8% ‐4.4% ‐
Slide 24: EBITDA Breakdown
EBITDA Breakdown EBITDA Margin 2008 % total 2007 % total Retail Mainland - store sales 6.7% 32.7% 7.0% 38.4% Cash & Carry Mainland 6.1% 8.5% 6.0% 10.8% Madeira 3.6% 1.0% 4.6% 1.6% Poland - Biedronka 6.9% 51.2% 5.9% 40.0% Mkt, Repr. and Rest. Services 1.3% 0.2% 2.4% 0.5% Manufacturing 14.3% 7.7% 14.1
Slide 25: 25
25