2017 Results presentation 7 November 2017

Transcription

1 2017 Results presentatin 7 Nvember 2017

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 Results presentatin / 7 Nvember 2017 / Page 2

3 Index: Results Highlights Delivering n ur bjectives Business Review Financial Review Outlk 2017 Results presentatin / 7 Nvember 2017 / Page 3

4 2017 Results Highlights Net Incme grwing 16.5% Psitive perfrmance f activity but strng negative impact f nn-recurring (tbacc excise taxes/price mvements in France and Italy) slwing dwn grwth Revenues decreasing by 1.4% t 9,493m Ecnmic Sales reached 1,050m, up by 1.1% 6.8% adjusted EBIT reductin t 219m Excise taxes/prices mvements and litigatin prvisin in Spain strngly affecting cmparisn Recurring csts increased belw activity grwth Net Incme strngly increased t 154m (+16.5%) Ecnmic Free Cash Flw: 74m Lwer negative wrking capital at clsing due t 30 September being Saturday and higher anticipated crprate incme tax cmpared t previus year Ttal dividends per share: 1.05 Prpsal f 0.75 final dividend t be paid in Q One-ff effects masking a slid recurring activity perfrmance at Adj. EBIT level while bsting financial results and Net prfit grwth 2017 Results presentatin / 7 Nvember 2017 / Page 4

5 Delivering n ur bjectives 2017 Results presentatin / 7 Nvember 2017 / Page 5

6 Delivering n ur bjectives Fur building blcks Strengthening while grwing cnslidated business base Expanding business base Imprving efficiency Our bjective: Attractive returns t sharehlders Rbust cash flw prfile 2017 Results presentatin / 7 Nvember 2017 / Page 6

7 Delivering n ur bjectives Strengthening/grwing cnslidated business base (actins) Maintaining leadership in tbacc (cntracts renewal depends n expiry calendar): British American Tbacc (France) and Japan Tbacc Internatinal (France and Italy) Grwing services: Further increasing revenues frm rute-t-cnsumer infrmatin t including fr Next Generatin Prducts (NGP) tbacc sectr Internatinal transprt: new rutes fr tbacc sectr and increased activity fr technlgy Iberian transprt: increased the number f dedicated rutes fr the pharmaceutical sectr Fr NGP: intra-factry flws extended t warehusing/shuttling f internatinal flws in Italy fr a client, distributin f new launches frm all tbacc clients, reverse lgistics fr devices, etc. Supprting industry/anticipating changes: First investments undertaken t meet Track & Trace requirements, shwrms fr authrities/manufacturers rganised, cllabratin with experts cmmittees, etc. Plain packaging implementatin in France, serving manufacturers and PSs during transitin: reverse lgistics, supprting tls fr quick identificatin f prducts, etc. Cnslidated business base: Psitive underlying Ecnmic sales perfrmance helped mitigating the high effect f ne-ffs y--y variatin 2017 Results presentatin / 7 Nvember 2017 / Page 7

8 Bsting sales int existing pipeline (whlesale): Multichannel deplyment: Only Cmpany ffering simultaneusly 5 channels: vendrs, cash & carry/stres, call centres, webs and pint f sale terminals Strng emphasis n internet cnnectin: transactinal websites revitalized, pint f sale terminals cntinue expanding (680 mre in France, surpassing 3,350 in Spain), market place launch in Italy, etc. Higher penetratin and higher average ticket thrugh new services t PS: clers, furniture sets, stre layut, etc. Develping Pharma: Delivering n ur bjectives Expanding business base (actins) Additinal cntracts in upstream lgistics (hspitals and pre-whlesaling): reinfrcing ur leadership psitin Fcus n expanding business mdel in distributin t pharmacies, fstering cmmercial activity with manufacturers and PSs New agreements cvering cmplete client s prtfli distributin t hspitals and pharmacies are steps in the desired directin Whlesale Ec. Sales in Spain and Italy psting grwth abve 20% 2017 Results presentatin / 7 Nvember 2017 / Page 8

9 Delivering n ur bjectives Imprving efficiency (actins) Vertical business mdel: Externalisatin f lcal service pints in Spain Warehuse capacity expansin f cnvenience in Spain Cnslidatin f 3 warehuses int 1 in France fr Other Businesses Synergies: Rerganisatin f transprt rutes Bsting mni-channel rdering Cntinued netwrk streamlining in Italy: 8 clsures Cntinuus imprvements: Increasing e-billing rate Reusable bxes prject: grwing rate in Spain and Italy Envirnmental measures: all lcatins directly managed by the Grup use electricity prduced frm renewable surces, intrductin f ECO vehicles in capillary delivery, etc. Ttal perating csts grwing belw underlying activity 2017 Results presentatin / 7 Nvember 2017 / Page 9

10 Delivering n ur bjectives Rbust cash flw prfile High average cash cnversin: Lwer than previus fiscal year, calendar effect distrted figure at clsing High pay ut rati: Slightly mre than 90% f Net Prfit distributed as dividends Bi-annual dividend payments: 0.65 Eurs/share paid in March (crrespnding t final dividend fiscal year 2016) 0.30 Eurs/share paid in August (interim fiscal year 2017) c. 126m paid during fiscal year Results presentatin / 7 Nvember 2017 / Page 10

11 Delivering n ur bjectives Successful year: fulfilling expectatins Strengthening while grwing cnslidated business base Psitive underlying Ecnmic sales perfrmance helped mitigating high effect f ne-ffs y--y variatin Expanding business base Imprving efficiency Whlesale Ec. Sales in Spain and Italy duble digit psting grwth abve 20% Ttal perating csts grwing belw underlying activity Dividend Yield in FY2017: 4.8%* Rbust cash flw prfile c. 126m dividends paid during fiscal year 2017 * 0.95 dividends paid during 2017; share price n 30 September 2016: Results presentatin / 7 Nvember 2017 / Page 11

12 Business Review 2017 Results presentatin / 7 Nvember 2017 / Page 12

13 Business Review Diversificatin acrss gegraphies and activities Gegraphical Split Breakdwn f activities: Ec. Sales 3 Ec. Sales: 1,050m 1 FY 2016: 1,038m 1 FY 2016: 1,038m 3 Italy 23% France 26% Iberia 51% Italy 24% France 27% Iberia 49% Other 12% Transprt 21% Tbacc & Related 67% Other 11% Transprt 21% Tbacc & Related 68% Adj. EBIT: 219m 2 Tbacc & Related in all 3 regins FY 2016: 235m 2 Italy, less develped in Related Italy 26% France 29% Iberia 45% Italy 31% France 31% Iberia 38% Transprt in Iberia Margins belw Grup s average Other Businesses Iberia: Pharma, Publicatins and Lttery France: whlesale in ther channels 1 Breakdwn calculated ver Ec. Sales befre Crprate Centre & Others: FY ,048m / FY ,033m 2 Breakdwn calculated ver Adj. EBIT befre Others & Adjustments: FY m / FY m 3 Breakdwn calculated ver Ec. Sales befre Crprate Centre & Others and Adjustments: FY ,098m / FY ,081m 2017 Results presentatin / 7 Nvember 2017 / Page 13

14 Business Review Snapsht by segment Macrecnmic envirnment: significant grwth cntinues Iberia Declining tbacc vlume and RSP increase vs. stability in FY2016 Cnvenience prducts sales significantly grwing Transprt cntinued benefitting frm activity recvery and new services Pharma business: grwing with new clients Revenues: 2,695m (+2.1%) Ec. Sales: 533m (+5.3%) Adj. EBIT: 105 (+10.2% ) One-ff csts, affecting cmparisn Macrecnmic envirnment: starting t recver but very slwly Revenues: 4.234m (-4.0%) France Declining tbacc vlumes, RSP stability/reductin vs. increased taxatin Ec. Sales: 274m (-2.9%) Reductin in e-transactin business and Other businesses weakness Adj. EBIT: 68m (-10.9%) Macrecnmic envirnment: recvery gaining mmentum Revenues: 2,599m (-0.5%) Italy Declining tbacc vlumes and RSP almst stable vs. increased taxatin translating int a lacklustre reprted figures Ec. Sales: 241m (-1.6%) Strng grwth f cnvenience sales Adj. EBIT: 59m (-22.0%) Revenues: (35)m (-16.4%) Crprate & Others Slightly higher Crprate csts as a result f plicy riented twards an even strnger crprate gvernance (internal cntrl, c-audit, etc.) Ec. Sales: 2m (-61.4%) Adj. EBIT: (13)m (-6.0%) 2017 Results presentatin / 7 Nvember 2017 / Page 14

15 Business Review Iberia Declining tbacc vlumes after RSP increase: Cigarette: -2.6% vs. 0.0% Tbacc and Related RYO: -2.8% vs. -1.6% RSP : +10 cents per pack and n changes last fiscal year Value added services increased Very gd perfrmance in Prtugal, rganic and small acquisitins Revenues: 2,323m (+2.3%) Ec. Sales: 266m (+7.0%) Strng grwth in sales f cnvenience prducts: tbaccnists, P&G, etc. Transprt Investment in high-quality service differentiatin cntinues translating int activity indicatrs imprvement Lng-distance: practically stable revenues despite vlumes fall Parcel and Curier: shwing psitive activity indicatrs, duble digit in Curier Revenues: 341m (+3.4%) Ec. Sales: 236m (+3.9%) Pharma: Migratin frm sales t service prvider mdel Other Businesses Grwth due t incrpratin f new clients as well as new business lines frm existing clients Fstering cmmercial activity with pharmaceutical cmpanies and PSs Rest f activities: increased sales in Publicatins, gaining cntracts in cllectables and children s flw-packs; grwing sales in Lttery Revenues: 126m (-3.1%) Ec. Sales: 76m (+3.6%) Adjusted EBIT Custmary cst cntrl and efficiency imprvement measures Recurring csts (excluding 6.8m ne-ff) grew 2.6%, well belw activity Adj. EBIT: 105m (+10.2%) 2017 Results presentatin / 7 Nvember 2017 / Page 15

16 Business Review France Declining tbacc vlumes but n-high impact since PP intrductin: Cigarette: -2.7% vs. +1.1% RYO: -5.4% vs. +3.0% Tbacc and Related Uneven RSP mvements in tbacc depending n prducts categry but nt cmpensating fr taxes and tbaccnists cmmissin increases. N RSP in FY2016 Weak sales f cnvenience and tbacc related prducts and significant reductin in electrnic transactins (telephny tp-ups & cash cards) Revenues: 4,050m (-3.8%) Ec. Sales: 229m (-3.2%) 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 Envirnment: cnsumptin in small stres still depressed Activity nt shwing recvery signals Margin mix and prtfli f clients clean-up favured almst flat Ecnmic Sales Revenues: 191m (-8.8%) Ec. Sales: 50m (-0.9%) Adjusted EBIT Restructuring measures undertaken at the beginning f fiscal year Ttal perating csts std at the same level than last fiscal year Adj. EBIT: 68m (-10.9%) 2017 Results presentatin / 7 Nvember 2017 / Page 16

17 Business Review Italy Plunging cigarette vlumes, prbably caused by ban n sales f 10- cigarettes pack: Cigarettes: -6.1% vs. -0.1% RYO: +12.6% vs. +4.4% Tbacc and Related Sme brands reduced RSP in Q1 by cents/pack N (r very few) RSP increases despite higher tax incidence in brands after: the autmatic WAP update, as happened in H and Revenues: 2,599m (-0.5%) Ec. Sales: 241m (-1.6%) the excise taxes increase taken by the Gvernment in Q3 Imprtant grwth f the additinal services rendered t manufacturers, including related t Next Generatin Prducts Duble digit grwth in Ecnmic Sales f tbacc related and cnvenience prducts Adjusted EBIT Ttal perating csts grwing slightly abve recurring activity Cntinuus actins t imprve efficiency Adj. EBIT: 59m (-22.0%) 2017 Results presentatin / 7 Nvember 2017 / Page 17

18 Financial Review 2017 Results presentatin / 7 Nvember 2017 / Page 18

19 Financial Review: P&L Psitive underlying perfrmance cncealed by ne-ff events ( m) Δ% Revenues 9, ,632.0 (1.4)% Ec. Sales 1, , % (-) Distributin Csts (685.9) (662.5) (3.6)% (-) Sales and Marketing Expenses (64.8) (64.3) (0.8)% Revenues: Drp in tbacc vlumes partially ffset by RSP increases in Spain this year and in Italy in Q3 FY 2016 Ecnmic Sales: Grwth in Iberia mre than ffsetting drp in France and Italy linked t ne-ffs y--y variatin (-) Research Expenses and G&A Expenses (80.2) (76.5) (4.7)% Ttal Csts (830.9) (803.3) (3.4)% Adjusted EBIT (6.8)% Margin % 20.8% 22.6% -180 b.p. Ttal csts: Adjusting nn-recurring csts in Iberia ( 6.8millin) up +2.6%, belw recurring activity grwth Negative Adjusted EBIT perfrmance fully explained by nn-recurring csts and ne-ff effects in Ec. Sales, psitive underlying trend (-) Restructuring Cst (9.0) (6.6) (36.6)% (-) Amrt. f Intangibles Lgista France (52.2) (52.2) 0.0%. (-) Net Lss n Dispsal and Impairments (0.3) 0.2 n.r. (-) Share f Results f Cmpanies and Others (19,1)% Prfit frm Operatins (10.8)% Restructuring csts up as a cnsequence f actins t mitigate activity reductin in France and cntinuus efficiency measures Prfit frm Operatins hit by ne-ff effects and restructuring csts 2017 Results presentatin / 7 Nvember 2017 / Page 19

20 Financial Review: P&L Net Incme grwth prpelled by ne-ff results ( m) Δ% Prfit frm peratins (10.8)% (+) Financial Incme % (-) Financial Expenses (1.4) (3.9) +63.7% Prfit befre taxes % (-) Crprate Incme Tax (34.3) (55.3) 37.9% Effective Incme Tax Rate 18.3% 29.4% +1,110 b.p. (+/-) Other Incme / (Expenses) (0.0) (0.1) +65.0% (-) Minrity Interest 0.3 (0.3) n.r. Net Incme % Higher psitive Financial Result: Psitive ne-ff impact frm sale f Italian affiliate in Q1 Lwer interest rate ver slightly higher average cash psitin Crprate Incme Tax : Lwer applicable tax rate in all gegraphies Cntinues benefiting frm sme deductins applied in Spain since last year Annuncement f future reductins f applicable tax rate in Italy and France: revaluatin f deferred taxes The capital gain in Italy was taxable at a very lw rate 2017 Results presentatin / 7 Nvember 2017 / Page 20

21 Financial Review: Treasury Annual evlutin f cash psitin Seasnality driving cash psitin t its peak twards year end Dividend payments during FY2017: March 2017 ( 86.1m) Final 2016 August 2017(c. 39.7m) Interim OC 16 NV 16 DC 16 EN 17 FB 17 MZ 17 AB 17 MY 17 JN 17 JL 17 AG 17 SP 17 MIN AVERAGE MAX ( m) Mínimum Average Maximum Cash 599 1,659 2, Results presentatin / 7 Nvember 2017 / Page 21

22 Financial Review: Investments Investing in differentiatin and high-quality services ( m) Δ% Maintenance % > 40% dedicated t technlgy Infrastructure (0.8)% IT investments (technlgy) % Ttal investments % Limited investment in warehuses: asset light business mdel Track & trace investments started 2017 Results presentatin / 7 Nvember 2017 / Page 22

23 Financial Review: Ecnmic Free Cash Flw ( m) Δ EBITDA (20) Wrking Capital Variatins and Others (71) 119 (190) Seasnality f the business results in a negative cash flw during H1 that is recvered during H2 Crprate Incme Tax Paid (109) (40) (69) Financial Incme and Expenses Flws Lwer negative wrking capital at clsing due t 30 September being Saturday and 1 less day in sales in September Cash Flw Frm Operating Activities (260) Net Investments (29) (23) (5) Ecnmic Free Cash Flw (265) % ver EBITDA 29% 125% Crprate Incme Tax paid higher than previus year: rules fr calculatin in Spain changed, applying a higher percentage and including nw internatinal dividends During FY 2017 c. 126m dividends were distributed 2017 Results presentatin / 7 Nvember 2017 / Page 23

24 Financial Review: Dividend Plicy Directrs will prpse a dividend distributin fr year ended September 2017 f c. 139 millin Interim dividend paid in August 2017 ( 0.30 per share, c. 39.7m) Final dividend per share: 0.75 (number f shares: 132,750,000, treasury stck: 391,432) Payable at the end f secnd quarter f fiscal year 2018 Directrs intend fr the next years t distribute, at least, 90% f reprted net prfit in dividends Interim dividend: 1/3 f the previus year s ttal dividend, in the furth quarter f the relevant fiscal year Final dividend: in functin f reprted net prfit, in the secnd quarter f the next fiscal year 2017 Results presentatin / 7 Nvember 2017 / Page 24

25 Financial Review: Cnclusins Highly resilient business mdel Superir prfitability with imprving margins Rbust Ecnmic Cash Flw prfile Attractive Dividend Pay-ut prfile TSR 2017 * :+7.2% Absrbing a 10% stake placement in early September * Surce: Blmberg, frm 30 September 2016 t 30 September 2017 (withut dividends reinvestment ) 2017 Results presentatin / 7 Nvember 2017 / Page 25

26 Outlk 2017 Results presentatin / 7 Nvember 2017 / Page 26

27 Outlk 2018 Adj. EBIT expected t grw duble-digit Current trading envirnment suggests 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 a much lwer duble-taxatin deductin in Spain) After 2 years recrding duble-digit grwth, Net Prfit in FY2018 will stabilize at a high base, similar t FY Results presentatin / 7 Nvember 2017 / Page 27

28 Appendix 2017 Results presentatin / 7 Nvember 2017 / Page 28

29 Tbacc Vlumes Evlutin Strnger vlume trend in all gegraphies Millin units % Y--Y Change 1 Oct Sept Oct Sept Oct Sept Oct Sept Oct Sept TOTAL Cigarettes 161, , ,734 (4.0)% +0.3% RYO/MYO 20,791 20,955 20,617 (0.8)% +1.6% Cigars 4,022 3,842 3, % (3.2)% SPAIN Cigarettes 44,960 46,144 46,136 (2.6)% +0.0% RYO/MYO 6,330 6,509 6,618 (2.8)% (1.6)% Cigars 1,976 2,066 2,128 (4.4)% (2.9)% PORTUGAL Cigarettes 2,058 1,786 1, % +6.6% RYO/MYO (20.6)% (16.5)% Cigars FRANCE Cigarettes 45,273 46,545 46,027 (2.7)% +1.1% RYO/MYO 9,262 9,787 9,501 (5.4)% +3.0% Cigars 1,264 1,296 1,356 (2.4)% (4.4)% ITALY Cigarettes 69,355 73,825 73,896 (6.1)% (0.1)% RYO/MYO 5,089 4,520 4, % +4.4% Cigars % (0.9)% 2017 Results presentatin / 7 Nvember 2017 / Page 29

30 Revenues Evlutin By segment and activity ( m) Δ% Iberia 2, , % Tbacc & Related 2, , % Transprt Services % Other Businesses (3.1)% Adjustments (94.2) (90.8) (3.6)% France 4, ,410.8 (4.0)% Tbacc & Related 4, ,207.9 (3.8)% Other Businesses (8.8)% Adjustments (6.6) (6.4) (4.3)% Italy 2, ,611.2 (0.5)% Tbacc & Related 2, ,611.2 (0.5)% Crprate & Others (34.8) (29.9) (16.4)% Ttal Revenues 9, ,632.0 (1.4)% 2017 Results presentatin / 7 Nvember 2017 / Page 30

31 Ecnmic Sales Evlutin By segment and activity ( m) Δ% Iberia % Tbacc & Related % Transprt Services % Other Businesses % Adjustments (44.6) (42.6) (4.6)% France (2.9)% Tbacc & Related (3.2)% Other Businesses (0.9)% Adjustments (5.2) (5.0) (3.6)% Italy (1.6)% Tbacc & Related (1.6)% Crprate & Others (61.4)% Ttal Ecnmic Sales 1, , % 2017 Results presentatin / 7 Nvember 2017 / Page 31

32 Adjusted EBIT Evlutin By segment ( m) Δ% Iberia % France (10.9)% Italy (22.0)% Crprate & Others (12.9) (12.2) (6.0)% Ttal Adjusted EBIT (6.8)% 2017 Results presentatin / 7 Nvember 2017 / Page 32

33 Balance Sheet ( m) PP&E and ther Fixed Assets Net Lng Term Financial Assets Net Gdwill Other Intangible Assets Deferred Tax Assets Net Inventry 1, ,085.8 Net Receivables 1, ,793.1 Cash & Cash Equivalents 1, ,062.7 Ttal Assets 6, ,722.8 Grup Equity Minrity interests Nn Current Liabilities Deferred Tax Liabilities Shrt Term Financial Debt Shrt Term Prvisins Trade and Other Payables 5, ,813.9 Ttal Liabilities 6, , Results presentatin / 7 Nvember 2017 / Page 33

34 2017 Results presentatin 7 Nvember 2017