GROWTH A STRONG COMMITMENT

Transcription

1 GROWTH A STRONG COMMITMENT

2 INDEX 1. THE GROUP TODAY INDEX 2. STRATEGY OVERVIEW 3. OUTLOOK 2.1. Strategic Pillars 2.2. Strategic Paths 2

3 1. THE GROUP TODAY 3

4 1. THE GROUP TODAY PORTUGAL POLAND Supermarkets 34.5% Sales 28.6% EBITDA 55.7% Inv. Cap. Wholesale 8.3% Sales 6.8% EBITDA 6.2% Inv. Cap. Discount Stores 55.3% Sales 60.0% EBITDA 28.8% Inv. Cap. JV Unilever 2.7% Sales 5.2% EBITDA 4

5 1. THE GROUP TODAY Discount in Poland Leader in its segment in Poland c. 11% 12% of market share 1,665 stores in Q Average selling area = 570 sqm Proximity locations EDLP Exclusive brands representing c.57% of sales Non food c.6% of sales Perishables c.15% of sales 5

6 1. THE GROUP TODAY Supermarkets in Portugal Leader in the supermarket segment in Portugal (c.19% market share in Total Retail Market) 348 Stores; average selling area c. 1,200 sqm Assortment c. 6 thousand SKUs Prime proximity locations EDLP Key differentiating factors The leading operator of perishables in the Portuguese market (c.40% of sales) Private brands c.40% of total sales (excl. perishables) 6

7 1. THE GROUP TODAY Wholesale in Portugal Leader in the C&C market c.38% market share 38 stores Average sales area = 3,300 sqm Serving HoReCa (42% of sales) and Traditional Retailers (40% of sales) Private brands c.17% of sales Perishables c.15% of sales Non Food c.7% of sales 7

8 1. THE GROUP TODAY Three years ago The Group focused on protecting cash flow with a list of priorities: Poland the growth engine our priority regarding capital allocation Optimization of all Company s praxis operating (costs & wc) and financing Reinforcing Balance Sheet In the last three years ( 08 10) The Group achievements: c.euro1 bn Capex in Biedronka 604 new stores and 2 new DCs Sales CAGR c.29% (in PLN) Inventories from 21 to 15 days of sales Gearing currently below 50% and Net Debt/EBITDA below 1x Today The strategy lead the Group to reach a relevant increase in its size, an increased capacity to execute and deliver and a stronger financial situation 8

9 2. STRATEGY OVERVIEW 2.1. Strategic Pillars 2.2. Strategic Paths 9

10 2. STRATEGY OVERVIEW 2.1. Strategic Pillars OUR APPROACH TO VALUE FOOD RETAIL 2. LCO 3. Proximity Strong Value Approach Value and Mass Market: 1. Food Solutions Strong differentiation: 4. Fresh Products 5. Private Brand 6. Quality: Products, Packaging, Store Environment and Private Brand Leadership Dynamics The success of our formats is leveraged on leadership 1. Trust / Awareness / Reliability 2. Scale Matters Sourcing, Costs, Presence Capacity to anticipate market needs: our clients can expect more and pay less 3. Total Attention to consumer s feedback and business details 10

11 2. STRATEGY OVERVIEW 2.2. Strategic Paths The Starting Point Strong leading positions in Poland and Portugal Growing cash flow generation to fund expansion and debt reduction Targeting profitable growth and high return businesses Strategic Paths Our Priorities 1 Maximize the Polish Opportunity Extract the maximum potential from Group s leading positioning in Poland: Sales efficiency LFL Organic growth program Testing new opportunities 2 Consolidate the Portuguese Positioning Consolidate leadership through: Full coverage of the proximity market Optimising cash flow generation and returns 3 Pursue New Growth Leverage on our strengths to: Search for new growth opportunities Define the appropriate entry point and entry strategy 11

12 2. STRATEGY OVERVIEW 2.2. Strategic Paths Maximize Polish Opportunity The Starting Point Biedronka now goes through a Key Stage in its Consolidation LFL growth solid and stable Benefits of scale massively emerging clear leadership in productivity Increasing Pre Tax ROIC Price leadership to be maintained LFL Sales Growth EBITDA Mg Price Index % 20.2% 8% Supermarkets 20% 6.9% 7.3% 110 6% Hypermarkets % 8.3% 11.6% 4% Discounts 2% 100 Biedronka 0% 0% 95 '08 '09 '10 '08 '09 '10 Q1 10 Q2 10 Q3 10 Q4 10 The Way to Go Two Main Growth Sources: BASKET and NEW STORES 12

13 2. STRATEGY OVERVIEW 2.2. Strategic Paths Maximize Polish Opportunity Basket increase requires an improving commercial proposition Assortment progressively targeting more units of need Critical criteria to comply with new additions to Biedronka s assortment: High rotation only fast moving goods No increases in store costs from improvements in commercial offer Packaging as an extra differentiation tool Avg basket (PLN) This dynamic will drive basket growth LFL ambitioning double digit in the next 3 years 13

14 2. STRATEGY OVERVIEW 2.2. Strategic Paths Maximize Polish Opportunity Expansion Potential requires full Company commitment Biedronka has 9 Regions, each one with a DC serving a target of stores Each Region, has a resident expansion team prospecting the local market for new locations Regional approach increases Biedronka s organic growth potential Nr. Stores 2,000 1,600 1, Nr. DCs '01 '02 '03 '04 '05 '06 '07 '08 '09 '

15 2. STRATEGY OVERVIEW 2.2. Strategic Paths Maximize Polish Opportunity Accelerating Biedronka Expansion Given Group s current financial strength and our perception of the Polish retail market, we see as one key strategic target to accelerate the expansion of Biedronka, not compromising the quality of the locations or the expected returns 15

16 2. STRATEGY OVERVIEW 2.2. Strategic Paths Maximize Polish Opportunity Accelerating Biedronka Expansion A network > 2,300 stores 2013 (YE) 14 Regions Expansion capacity at stores per annum (c.270 net additions) By progressively strengthening our regional expansion capacity with an increased number on Regions we will advance as fast as we can towards our medium term vision: 3,000 Biedronka stores in Poland by

17 2. STRATEGY OVERVIEW 2.2. Strategic Paths Consolidate Portuguese Position JM s Distribution Formats in Portugal General Overview Environment expected to get tougher following the austerity plan approved in April 2011 Capex limited to revamping program and openings in key proximity locations Group formats expected to continue to outperform the market, benefiting from business models awareness and leadership Priority continues to be the strengthening of market share through LFL sales growth 17

18 2. STRATEGY OVERVIEW 2.2. Strategic Paths Pursue New Growth Know how and execution: drivers for new growth Avenues Corporate Approach Strong Commitment to identify new sources of growth Defining the Market Sizable + Economic and institutional framework + Basic suppliers infrastructures Defining the Format Food + Price Competitive + Mass Market + Local Approach 18

19 3. OUTLOOK Outlook In Poland, expand the business as much as we can backed by the market potential and Biedronka s strengths We remain cautious about the Portuguese economy but confident that our business models will outperform their sectors Double digit annual sales growth for the Group over the period Group EBITDA expected to grow at least in line with sales Group Capex for the 3Y period c.euro1.7 bn, more than 3/4 to be invested in Poland 19

20 Disclaimer This presentation includes forward looking statements that involve risks and uncertainties. Actual results may differ materially from those stated in any forwardlooking statement based on a number of factors. Jerónimo Martins assumes no obligation to update the information contained in this presentation or to notify a reader in the event that any matter stated herein changes or becomes inaccurate. 20

21 APPENDIX 21

22 Q RESULTS Key Figures (Million Euro) Q1 10 Q1 11 Net Sales 1, % 2,241.6 EBITDA % EBITDA Mg. 6.0% 6.5% Net attr. Results % 56.4 EPS (Euro) Net Debt Gearing 65.4% 50.6% 22

23 Q RESULTS Store Network Number of Stores 2010 Openings Closings Network Q1 11 Q1 11 Q1 11 Q1 10 Biedronka 1, ,665 1,504 Retail Portugal Supermarkets Hypermarkets Recheio Madeira Sales Area (sqm) 2010 Openings Closings* Network Q1 11 Q1 11 Q1 11 Q1 10 Biedronka 938,218 11, , ,068 Retail Portugal 437, , ,354 Supermarkets 359, , ,076 Hypermarkets 78, ,281 79,278 Recheio 123, , ,681 Madeira 14, ,253 14,253 * including changes of sales area due to remodellings 23

24 Q RESULTS Sales Breakdown (Million Euro) Q1 11 Q1 10 % total % total Pln Euro Biedronka 1, % 1, % 21.7% 22.8% Retail Mainland % % 6.0% Recheio % % 3.7% Madeira % % 15.9% Manufacturing % % 4.6% Mkt. Repr. and Rest. Serv % % 4.8% Consolidation Adjustments % % 14.8% Total JM 2, % 1, % 14.7% p.m. Retail Mainland % (store sales) 24

25 Q RESULTS Sales Growth Total Sales Growth LFL Sales Growth Q1 11 Q1 11 Biedronka Euro 22.8% PLN 21.7% 11.7% Retail Portugal 4.6% 1.8% * Supermarkets 5.6% 1.7% Hypermarkets 4.2% 3.2% Recheio 3.7% 0.4% Madeira 15.9% 3.7% Manufacturing 4.6% 4.6% Mkt. Repr. and Rest. Serv. 4.8% 7.9% * Ex petrol LFL was +0.1% 25

26 Q RESULTS EBITDA EBITDA Evolution (Million Euro) % 6.5% % Sales 7% % EBITDA Breakdown 10.3% 0 Q1 10 Q1 11 0% 6.5% 7.1% 5.7% 5.9% 8.6% 6.0% 6.5% Distribution Poland Distribution Portugal Manufacturing & Services JM Consolidated Q1 10 Q

27 Q RESULTS P&L (Million Euro) Q1 11 Q1 10 Consolidated Sales 2,242 1, % Total Margin % % 13.8% Operating Costs % % 10.1% EBITDA % % 24.0% Depreciation % % 13.8% EBIT % % 30.4% Net Financial Results % % 8.5% Non Recurrent Items 5 0.2% 2 0.1% EBT % % 37.5% Taxes % % 49.7% Net Profit % % 34.6% Non Controlling Interest 2 0.1% 1 0.1% 77.2% Net Profit attr. to JM % % 33.5% EPS ( ) % Cash Flow per share ( ) % 27

28 Q RESULTS Balance Sheet (Million Euro) Q1 11 Q1 10 Net Goodwill Net Fixed Assets 2,289 2,178 Net Working Capital 1,320 1,186 Others Invested Capital 1,792 1,860 Financial Debt Leasings Accrued interest Marketable sec. & Bank deposits Net Debt Shareholders Funds 1,190 1,125 Gearing 50.6% 65.4% 28

29 Investor Relations martins.pt Cláudia Falcão martins.pt Hugo Fernandes martins.pt 29