H Results Presentation 9 May 2018

Transcription

1 H Results Presentatin 9 May 2018

2 Disclaimer This dcument has been prepared by Cmpañía de Distribución Integral Lgista Hldings, S. A. ( Lgista Hldings r the Cmpany ) fr infrmatin purpses, and des nt cnstitute an ffer f purchase, sale r exchange, neither an invitatin fr an ffer f purchase, sale r exchange f shares f the Cmpany, r any advice r recmmendatin with respect t such shares. This dcument cntains certain statements that cnstitute r may cnstitute frward lking statements abut the Cmpany, including financial prjectins and estimates and their underlying assumptins, which are nt guarantee f future perfrmance r results, and are subject t risks, uncertainties and ther imprtant factrs beynd the cntrl f Lgista Hldings that culd cause final perfrmance r results materially different frm thse expressed in these statements. These risks and uncertainties include thse discussed r identified in the dcuments filed by Lgista Hldings with the relevant Securities Markets Regulatrs, and in particular, with the Spanish Market Regulatr. Analysts and investrs are cautined nt t place any reliance n such frward lking statements, which reflect knwledge and infrmatin available as f the date f this dcument. The Cmpany des nt undertake t update r revise publicly these frward lking statements in case unfreseen changes r events ccur which culd affect these statements, even if these changes r events make clear that the statements shall nt be realized. Finally, it shuld be nted that this dcument may cntain infrmatin which has nt been audited and may cntain summarized infrmatin. This infrmatin is subject t, and must be read in cnjunctin with, all ther publicly available infrmatin, including if it is necessary, any fuller disclsure dcument published by Lgista Hldings. H Results Presentatin / 9 May 2018 / Page 2

3 Index: Results Highlights Business Review Financial Review Outlk H Results Presentatin / 9 May 2018 / Page 3

4 H Results Highlights Sund start f fiscal year 2018 Ecnmic Sales grwing t 545.2m (+6.5%) Revenues decreased by 1.3% t 4,466.5m with Pharma, Cnvenience and Transprt partially ffsetting lwer e-transactins and tbacc vlumes drp (-2.2% cigarettes + RYO). Increasing Ecnmic Sales in all activities in Iberia and Italy Slightly psitive impact frm price/tax mvements in H vs. H Adjusted EBIT up by +14.1% t 114.1m, excluding H nn-recurring cst up by +6.8% Stable Adjusted EBIT margin ver Ecnmic Sales if nt cnsidering that impact: 20.9% Prfit frm Operatins increasing +25.2% t 80.0m Net Incme declined t 71.1m (-7.1%) Nn-recurring financial incme in Q frm the sale f an affiliate in Italy Ecnmic Free Cash Flw: 291.6m Calendar effect and price/tax mvements translated int a higher negative wrking capital Dividend per share paid in the semester: 0.75 (+15.4% ver dividend paid in H1 2017) Adjusted EBIT grwing 14.1% n a slid recurring activity perfrmance ver a lw cmparisn base in H frm a ne-ff prvisin H Results Presentatin / 9 May 2018 / Page 4

5 Business Review H Results Presentatin / 9 May 2018 / Page 5

6 Business Review Snapsht by segment RSP increases in Q1, declining tbacc vlumes Iberia Very psitive track-recrd in cnvenience Strng perfrmance f Transprt Pharma grwth cntinues Nn-recurring csts in Q1 impacting reprted figures last year Revenues: 1,315.9m (+4.1%) Ec. Sales: 276.8m (+5.7%) Adj. EBIT: 56.5m (+20.8% ) Csts increasing belw activity in reprted and underlying terms France Excise tax increases planning, apprved and started: RSP increases Tbacc vlumes dwn, nt yet reflecting impact n sales t cnsumer Slight ersin n Other Businesses Csts reducing n a lwer underlying activity Revenues: 1,938.0m (-5.0%) Ec. Sales: 125.6m (-7.6%) Adj. EBIT: 26.0m (-15.4%) Italy Tbacc vlumes dwn, RSP increases in H vs. stable in H Ec. Sales benefiting since last year frm enlarged prtfli f services t manufacturers Duble digit grwth n cnvenience sales Revenues: 1,236.9m (-0.1%) Ec. Sales: 142.1m (+26.4%) Adj. EBIT: 37.8m (+32.9%) Crprate & Others Stable crprate csts N majr changes f perfrmance in Pland Revenues: m (-64.7%) Ec. Sales: 0.8m (-55.3%) Adj. EBIT: - 6.2m (-4.2%) H Results Presentatin / 9 May 2018 / Page 6

7 Business Review Iberia Lwer reductin f tbacc vlumes in Spain in Q2 than in Q1 leading H1 t: Tbacc and Related Cigarettes: -2.6% vs. -2.0%; RYO: -1.5% vs. -2.8% RSP increase in Q1: +5 cents vs. +10 cents in H Prtuguese business cntinues rganic and nn-rganic grwth Ecnmic Sales f cnvenience prducts strngly up despite fall in Revenues, after the change in billing system frm a client, nt affecting Ecnmic Sales Revenues: 1,108.5m (+2.7%) Ec. Sales: 131.8m (+3.1%) Transprt Healthy perfrmance f the 3 lines f services Lng-distance: benefitting frm NGP s cntract in Italy despite verall tbacc vlumes fall Parcel and Curier: strng general cnsumptin indicatrs adding t grwth in urgent services frm n-line sales Revenues: 184.6m (+8.0%) Ec. Sales: 126.2m (+5.6%) Other Businesses Pharma activity shwing the psitive effect f the incrpratin f new clients and seasnality in the vaccines calendar New value added services in distributin t hspitals and pharmacies Psitive perfrmance f Publicatins n a extremely cmpetitive sectr Revenues: 71.1m (+19.3%) Ec. Sales: 41.4m (+17.2%) Adjusted EBIT Custmary cst cntrl and efficiency imprvement measures Recurring csts (excluding 6.8m ne-ff prvisin last year) grew 5.8%, belw recurring activity Adj. EBIT: 56.5m (+20.8%) H Results Presentatin / 9 May 2018 / Page 7

8 Business Review France Tbacc and Related Tbacc vlumes significantly drpping in H1: Cigarettes: -5.2% vs. -3.0%; RYO: -9.6% vs. -1.3% Excise tax increases planned fr 2018 cmpleted (35 cents and 1 Eur in Nvember and March) and almst cmpletely transferred t RSP. Uneven RSP increases in tbacc in Q nt cmpensating fr new excise taxes and increase in tbaccnists cmmissin. Negative impact n inventries valuatin in bth perids, greater in H Raise n Sales f cnvenience and tbacc related prducts partially ffsetting a significant drp in e-transactins (telephny tp-ups & cash cards) Revenues: 1,853.6m (-4.9%) Ec. Sales: 105.0m (-8,3%) Imprvement f Ecnmic Sales margin ver Revenues in electrnic transactins, unitary fee increase frm tbacc vlume drp and value added services mitigated the reductin in Ecnmic Sales Other Businesses Stable cnsumptin envirnment translating int a grwing cmpetitin in the sectr Ecnmic Sales rate f decline mderating Revenues drp, as a result f slightly better margins Revenues: 88.0m (-4.7%) Ec. Sales: 23.5m (-2.0%) Adjusted EBIT Ttal perating csts dwn 5.3% very much in line with underlying activity Restructuring csts well belw preceding year, wait-and-see strategy with respect t vlumes evlutin Adj. EBIT: 26.0m (-15.4%) H Results Presentatin / 9 May 2018 / Page 8

9 Business Review Italy Tbacc and Related Small drp in cigarette vlumes ver a sharp reductin in H1 2017: Cigarettes: -1.0% vs. -7.8% ; RYO: +16.0% vs % RSP increase (+10 r +20 cents) but nt significant excise tax update vs. a higher tax impact last year Psitive net effect n inventries valuatin in H vs. negative in H Ecnmic Sales frm value added services t manufacturers mainly benefitting frm last year s expansin f NGP s factry cntract Revenues: 1,236.9m (-0.1%) Ec. Sales: 142.1m (+26.4%) Grwth clse t 20% in Ecnmic Sales f Cnvenience prducts Adjusted EBIT Ttal perating csts grwing slightly abve recurring activity due t grwing relative weight f lgistic peratins linked t the NGP s factry cntract Efficiency maintained, masked by the margin mix Adj. EBIT: 37.8m (+32.9%) H Results Presentatin / 9 May 2018 / Page 9

10 Financial Review H Results Presentatin / 9 May 2018 / Page 10

11 Financial Review: P&L Sund recurring activity grwth ( m) H H Δ% Revenues 4, ,527.0 (1.3)% Ec. Sales % (-) Distributin Csts (357.5) (338.5) (5.6)% (-) Sales and Marketing Expenses (34.1) (33.2) (2.6)% (-) G&A and Research Expenses (39.6) (40.2) +1.5% Ttal Csts (431.2) (411.9) (4.7)% Adjusted EBIT % Margin % 20.9% 19.5% +140 b.p. (-) Restructuring Csts (1.7) (5.2) +66.4% (-) Amrt. f Assets Lgista France (26.2) (26.1) (0.3)% Revenues: Grwth in Pharma, Transprt and Cnvenience mitigating drp in tbacc vlumes, nly partially ffset by RSP increases in all gegraphies Ecnmic Sales: All activities grwing in Spain and Italy, mre than ffsetting reductins in France Nt very significant impact n inventries valuatin in H1 in either perid althugh psitive in H vs. slightly negative in H Ttal csts: Adjusting nn-recurring csts in Iberia ( 6.8millin) in Q up +6.4%, almst in line with reprted and recurring activity Recurring Adjusted EBIT: +6.8% implies a stable 20.9% margin ver Ec. Sales Restructuring csts dwn, n relevant measures yet in France (-) Net Lss n Dispsal and Impairments n.r. (-) Share f Results f Cmpanies and Others ,1%. Prfit frm Operatins % Psitive perfrmance f Bks distributin H Results Presentatin / 9 May 2018 / Page 11

12 Financial Review: P&L Net Incme reductin frm H ne-ff capital gain ( m) H H Δ% Prfit frm Operatins % (+) Financial Incme (74.4)% (-) Financial Expenses (0.8) (0.7) (15.3)% Prfit befre taxes (0,5)% (-) Crprate Incme Tax (21.2) (16.2) (30.8)% Effective Incme Tax Rate 23.0% 17.5% (550) b.p. (+/-) Other Incme / (Expenses) 0.0 (0.0) n.r. (-) Minrity Interest (49.3)% Net Incme (7.1)% Much lwer reprted Financial Result: Psitive impact frm sale f Italian affiliate in Q Same interest rate ver slightly higher average cash psitin Crprate Incme Tax : Cntinues benefiting frm sme deductins applied in Spain in the last tw years Previus year s capital gain in Italy taxable at a very lw rate Net incme up by 21% excluding capital gain in H H Results Presentatin / 9 May 2018 / Page 12

13 Financial Review: Investments Investing n differentiatin ( m) H H Δ% Maintenance % Infrastructure % IT investments (technlgy) % Ttal investments % Increase in infrastructure due t the adaptatin f prcesses t the track & trace cming regulatin Increase in IT linked t the grwth f retailers cnnected t Lgista thrugh their TPS Lgista keeps a substantial part f its investments in technlgy and innvatin in rder t supprt the develpment f new value added services H Results Presentatin / 9 May 2018 / Page 13

14 Financial Review: Free Cash Flw (MM ) H H Change EBITDA Wrking Capital Variatins and Other (117.7) Seasnality f the business turned arund by calendar effect and RSP/tax mvements in France Crprate Incme Tax Paid (21.9) (45.4) Financial Incme and Expenses Flws (22.3) Lwer crprate incme tax paid and better results mre than ffsetting drp in financial results Cash Flw Frm Operating Activities (18.4) Capex (16.4) (19.8) 3.4 Ecnmic Free Cash Flw (38.2) % ver EBITDA 220% (33)% Investments: nrmalised level in the absence f nn-recurring divestment (funds frm the sale f the stake in an affiliate in Italy last year) During Q2 2018, final dividends fr FY 2017 were paid: 99m H Results Presentatin / 9 May 2018 / Page 14

15 Financial Review: Cnclusins Recurring perfrmance slightly utperfrming mid-term grwth target despite drp in distributed vlumes Strng Net Prfit grwth excluding last year s psitive impact frm sale f affiliate in Italy Crprate incme tax rate still benefiting frm duble taxatin deductin in Spain Attractive Dividend retributin thrugh 2 dividend payments per year (interim in August and final in March f the fllwing year) H Results Presentatin / 9 May 2018 / Page 15

16 Outlk H Results Presentatin / 9 May 2018 / Page 16

17 Outlk 2018 Adj. EBIT expected t grw duble-digit Current trading envirnment cnfirms management s expectatins: arund duble-digit Adjusted EBIT grwth rate in FY2018 Underlying activity is expected t cntinue perfrming slightly psitively Nn-recurring effects, nt managed by Lgista, will benefit frm a negative cmparisn base, very unlikely t be repeated and uncertain in magnitude Higher restructuring csts, depending n activity evlutin in France If, as requested by the Gvernment, sharp RSP increases are implemented by tbacc manufacturers, tbacc vlumes will prbably plunge Lwer Financial Results as n extrardinary impacts expected Crprate Incme Tax will increase cmpared t FY2017 in the absence f ne-ff effects (nly benefitting frm duble-taxatin deductin in Spain, but much lwer than in previus years) After 2 years recrding duble-digit grwth, Net Prfit in FY2018 will stabilize at a high base, similar t FY2017 H Results Presentatin / 9 May 2018 / Page 17

18 Appendix H Results Presentatin / 9 May 2018 / Page 18

19 Tbacc Vlumes Evlutin Psitive perfrmance Millin units % change 1 Oct Oct Oct Oct Oct Mar Mar Mar Mar Mar TOTAL Cigarettes 74,348 76,171 79,963 (2.4)% (4.7)% RYO/MYO 9,951 10,067 9,997 (1.1)% 0.7% Cigars 1,911 1,874 1, % 0.3% SPAIN Cigarettes 20,471 21,009 21,449 (2.6)% (2.0)% RYO/MYO 2,952 2,996 3,081 (1.5)% (2.8)% Cigars ,001 (3.3)% (4.5)% PORTUGAL Cigarettes 1, % 6.3% RYO/MYO (9.6)% (22.3)% Cigars FRANCE Cigarettes 20,476 21,605 22,265 (5.2)% (3.0)% RYO/MYO 4,194 4,638 4,701 (9.6)% (1.3)% Cigars (2.3)% (5.6)% ITALY Cigarettes 32,328 32,665 35,410 (1.0)% (7.8)% RYO/MYO 2,756 2,377 2, % 10.9% Cigars % 37.8% H Results Presentatin / 9 May 2018 / Page 19

20 Revenues Evlutin By segment and activity ( m) H H Δ% Iberia 1, , % Tbacc and Related 1, , % Transprt % Other Businesses % Adjustments (48.3) (45.5) (6.3)% France 1, ,039.4 (5.0)% Tbacc and Related 1, ,950.2 (4.9)% Other Businesses (4.7)% Adjustments (3.6) (3.1) (18.6)% Italy 1, ,238.0 (0.1)% Tbacc and Related 1, ,238.0 (0.1)% Crprate & Others (24.3) (14.8) (64.7)% Ttal Revenues 4, ,527.0 (1.3)% H Results Presentatin / 9 May 2018 / Page 20

21 Ecnmic Sales evlutin By segment and activity ( m) H H Δ% Iberia % Tbacc and Related % Transprt % Other Businesses % Adjustments (22.6) (20.8) (8.5)% France (7.6)% Tbacc and Related (8.3)% Other Businesses (2.0)% Adjustments (2.9) (2.6) (12.0)% Italy % Tbacc and Related % Crprate & Others (55.3)% Ttal Ecnmic Sales % H Results Presentatin / 9 May 2018 / Page 21

22 Adjusted EBIT Evlutin By segment ( m) H H Δ% Iberia % France (15.4)% Italy % Crprate & Others (6.2) (6.0) (4.2)% Ttal Adjusted EBIT % H Results Presentatin / 9 May 2018 / Page 22

23 Balance Sheet ( m) 31 March September 2017 PP&E and ther Fixed Assets Net Lng Term Financial Assets Net Gdwill Other Intangible Assets Deferred Tax Assets Net Inventry 1, ,122.6 Net Receivables and Others 1, ,791.0 Cash & Cash Equivalents 2, ,923.6 Ttal Assets 6, ,542.7 Grup Equity Minrity Interests Nn Current Liabilities Deferred Tax Liabilities Shrt Term Financial Debt Shrt Term Prvisins Trade and Other Payables 6, ,651.5 Ttal Liabilities 6, ,542.7 H Results Presentatin / 9 May 2018 / Page 23

24 H Results Presentatin 9 May 2018