Forth Quarter Results 2016 February 24, 2017

Transcription

1 Frth Quarter Results 2016 February 24, Q16 Results February 24, 2017

2 Fd segment revenue reaches R$45 billin in 2016, up 11.7%, accelerating t 12.5% in 4Q16 4Q16: Net sales: R$11.7 billin EBITDA (1) : R$742 millin 2016: Net sales: R$41.5 billin EBITDA (1) : R$2.2 billin Number f GPA Fd stres: 1,135 Extra Hypermarkets Cmmercial strategies bsted sales grwth with cnsistent market share gains Slid recvery in sales vlume and custmer traffic Dilutin f expenses due t perating efficiency gains Pã de Açúcar High prfitability maintained Maintenance f the market share in the last tw years Tw new stres in 2016 and 5 penings planned fr 2017 Assaí Revenue reached R$15.7 billin, increasing 39.2% in the year Slid same-stre perfrmance f 18.6% and duble-digit grwth in custmer traffic 13 new stres in 2016 (2 cnversins): 3 new states reaching nw all the regins f Brazil Cnverted stres registered revenue 2.5x higher and prfitability already higher than in previus frmat (1) EBITDA adjusted fr Other Operating Incme and Expenses Frth Quarter Results 2016 February 24,

3 Key figures R$ thusand 2016 Fd segment Multivarej Assaí Change vs Change vs Change vs Net sales 41, % 26, % 14, % Grss prfit 9, % 7, % 2, % Grss margin 23.0% -140bps 27.3% -90bps 15.0% +30bps SG&A expenses -7, % -5, % -1, % SG&A expenses (% net sales) 18.0% 0bps 22.1% +120bps 10.3% -20bps EBITDA (1) 2, % 1, % % EBITDA margin (1) 5.3% -150bps 5.6% -220bps 4.7% +50bps Net Incme (Lss) - Cntrlling Grup (1)(2) % % % Net margin (1)(2) 0.9% -120bps 0.2% -200bps 2.3% +70bps (1) EBITDA and Net incme (lss) adjusted fr Other Operating Incme and Expenses (2) Cnsidering cntinuing peratins nly. Fd segment grss margin reached 23.0% in line with perfrmance in 9M16 - Reflectin f cmmercial actins implemented, mainly at Extra banner - Increased share f Assaí in sales mix (35% in 2016 vs. 28% in 2015) - Margins nt expected t deterirate in 2017 SG&A stable at 18.0% f net sales, helped by higher share f Assaí in sales mix - Multivarej: SG&A grwth in line with inflatin, with an increase in stre expenses f nly 1.2%. Highlight t reductin in cnsumptin f electricity and persnal - Assaí: Increase in expenses belw sales, despite strng rganic expansin and higher share f individual cnsumers, which increased perating csts EBITDA (1) f R$2.2 billin, with margin f 5.3% - Grwth mainly due t investments in cmpetitiveness at Multivarej - Strng expansin f Assaí with 13 stre penings in the year, ttaling 107 stres Frth Quarter Results 2016 February 24,

4 Net Debt and Financial Result Net Debt Lwer level f leverage: - Net debt (1) / EBITDA (2) f 0.3 times at the end f 2016 vs. 0.4 times in the same perid in Reductin f R$357 millin in net debt R$5.4 billin in cash available: - Cash psitin reached R$5.1 billin in additin t receivables nt discunted ttaling R$241 millin - In additin, R$1.3 billin in pre-apprved/cnfirmed credit lines Grss debt increased R$1.2 billin, f which arund R$1.0 billin refer t the issue f CRA at 97.5% f the CDI rate and maturing in 3 years (R$ millin) Net Debt (1) / EBITDA (2) 4Q15 Fd Segment Net Debt (1) (873) -0.38x 4Q16 (516) -0.32x (1) Includes balance f receivables nt discunted ttaling R$241 millin in 4Q16 and R$136 millin in 4Q15. (2) EBITDA in the last 12 mnths. Financial Result 4Q16: 2016: 2017: - Lwer level than in 4Q15 (2.1% f sales vs. 2.3%) - Reached 2.2% f net sales, practically stable cmpared t the previus year. Nte the 20 bps reductin in the cst f grss debt - In the current scenari, an expected reductin f 100 bps in interest rate wuld generate savings f arund R$40 millin in financial result (R$ millin) Frth Quarter Results 2016 February 24,

5 Multivarej 4Q16: Net sales: R$7.5 billin EBITDA (1) : R$494 millin EBITDA Margin (1) : 6.6% 2016: Net sales: R$27.0 billin EBITDA (1) : R$1.5 billin EBITDA Margin (1) : 5.6% Number f Stres: 1,028 (1) EBITDA adjusted fr Other Operating Incme and Expenses Frth Quarter Results 2016 February 24, 2017 Prmtinal strategy cmbined with cst discipline enabled sequential imprvement thrughut 2016 at Multivarej Multivarej: Fcus n strengthening Extra banner, innvatin at Pã de Açúcar and grwth f Prximity mdel with Minut Pã de Açúcar Current EBITDA Margin (1) reflects cmmercial initiatives and changes in cnsumer habits. Highlights: Extra: - Grss margin in a trend f grwth ver the year, reflecting adequate level f cmpetitiveness - Fcus n adjusting csts, with increase in SG&A expenses in line with inflatin in the year New cmmercial strategy implemented since 1Q16 reinfrces banner's image f price cmpetitiveness: - Sequential acceleratin f sales during the year: Hiper SSS f 5% in 4Q16 (vs. -2.5% in 9M16) - Market share gain in vlume in the last 9 measurements (Apr Dec) Operating efficiency with reductin f 1.1% in stre expenses, thrugh (i) ptimizatin f electric energy; ii) review f lgistics prcesses and efficiencies Turnarund f trend in same-stre sales in nn-fd categries: psitive perfrmance in 4Q16 The Implementatin f Éxit Grup textile mdel in 4 Extra stres, led t an increase f 20% in the categry Adequate level f cmpetitiveness given the current cnsumptin scenari 4

6 Multivarej 4Q16: Net sales: R$7.5 billin EBITDA (1) : R$494 millin EBITDA Margin (1) : 6.6% 2016: Net sales: R$27.0 billin EBITDA (1) : R$1.5 billin EBITDA Margin (1) : 5.6% Number f Stres: 1,028 High prfitability in Pã de Açúcar and Prximity, apart frm the launch f "Aliads Cmpre Bem" Pã de Açúcar: High level f prfitability, the highest level amng GPA Fd banners New mnitring already reflects prgressive imprvements in service level, custmer service and assrtment Maintenance f market share f the banner fr mre than 24 mnths Prximity: Net revenue f ver R$1.1 billin and same-stre sales abve inflatin, with market share gains Higher prfitability than in 2015 due t imprvement in prcesses and expansin f scale Mre selective investments: expansin plan fcused n Minut "Aliads Cmpre Bem" prject based n Éxit Grup business mdel in Clmbia Partnership between GPA and independent retailers GPA prvides its expertise t reach ut and enhance the ptential f this market segment 102 partner stres in 2016; expected t increase t 500 in 2017 (1) EBITDA adjusted fr Other Operating Incme and Expenses Frth Quarter Results 2016 February 24,

7 Revenue f R$15.7 billin and cnsistent same-stre sales f 18.6% drive EBITDA (1) grwth f 55% 4Q16: Net Sales: R$4.3 billin EBITDA (1) : R$248 millin EBITDA Margin (1) : 5.8% 2016: Net Sales: R$14.5 billin EBITDA (1) : R$681 millin EBITDA Margin (1) : 4.7% Number f Stres: 107 Cnsistent sales perfrmance: - Cnsistent same-stre sales grwth in all quarters f the year - Frmat already accunts fr 35% f Fd segment (vs. 28% in 2015) - Gain in market share f abut 400bps in a strng grwing market - Custmer traffic increasing duble digit Slid expansin and cnversin plan: - 13 new stres in the last 12 mnths, including 2 cnversins, with self-financed resurces - Cnverted stres (Pilares-RJ and Sã Vicente-SP) have already registered revenue 2.5x higher and custmer traffic increase f 30% Reductin in SG&A expenses as percentage f net sales f 20bps in the year despite strng rganic expansin EBITDA (1) grwth f 54.5% in the year, reaching a ttal f R$681 millin. EBITDA margin imprved 50 bps and reached 4.7% Increase f 95.3% in net incme (1), with margin f 2.3% Inauguratin f the first SurtiMayrista Stre in Clmbia based n Assaí perating mdel (1) EBITDA and net incme adjusted fr Other Operating Incme and Expenses Frth Quarter Results 2016 February 24,

8 Outlk fr 2017 Multivarej Stre prtfli ptimizatin Grss margin reflects adequate level f cmpetitiveness and n additinal pressures are expected Operatinal imprvements and cntinued disciplined cntrl f expenses Digital transfrmatin f lyalty prgrams and imprvements in stre shpping experience Optimizatin in wrking capital, with R$ 500 millin reductin f inventries (apprx. 10 days) Estimated investments f R$ 500 millin¹: Apprximately 5 new Pã de Açúcar stres + 10 Minut Pã de Açúcar stres Higher investments dedicated in stre maintenance Assaí Sales grwth shuld utperfrm industry with market share gains Imprvement in adjusted EBITDA margin due t maturatin f stres, with the gal t reach level f arund 5% Strng expansin plan with self-financed resurces f abut R$ 600 millin¹ : 6 t 8 new stres 15 Extra Hiper cnversins int Assaí with average return > 20% [-10d t -5d] Wrking capital ² [-4d t 0d] Fd Sales grwth abve market 3 expectatins with market share gains 1.0x Sales [2.0x t 2.5x] [-2% t 2%] Mg. EBITDA [5% t 6%] Wrking capital ptimizatins shuld generate a reductin f abut 5 days in fd business 'Maestr' synergies prject may deliver at least US$ 50 millin savings in the regin Imprvement in leverage levels: expected net cash¹ at the end f 2017 with rati f 0.1x EBITDA Average term f grss debt lengthened by 170 days Resultads ¹ withut 4º Trimestre prceeds frm de 2016 Via Varej 24 peratin, de Fevereir ² WK de in 2017 days f COGS, 3 ABRAS 2017 frecast 7

9 Investr Relatins Team Telephne: +55 (11) Fax: +55 (11) Disclaimer The frward-lking statements in this presentatin are based n current assumptins and prjectins f the Cmpany's management, which culd differ materially frm actual results and perfrmance and future events. These prjectins include future results that culd be influenced by histrical results and investments. Actual results, perfrmance and events may differ significantly frm thse expressed r implied by these frward-lking statements due t a variety f factrs, such as general ecnmic cnditins in Brazil and ther cuntries, interest and exchange rate variatins, future renegtiatins r prepayment f bligatins r lans denminated in freign currency, legal and regulatry changes and general cmpetitive factrs at the reginal, natinal r glbal levels. Frth Quarter Results 2016 February 24, 2017