2015 FIRST HALF
RESULTS
February
2013
July27,30,
2015
2015FIRSTHALFRESULTS
Index
1. KEY MESSAGES
2. KEY FIGURES
3. INCOME STATEMENT
4. CASH FLOW
Separadores
Lorem Ipsum
5. BALANCE SHEET
6. SALES PERFORMANCE
7. EBITDA PERFORMANCE
8. FINAL REMARKS & OUTLOOK
2
2015FIRSTHALFRESULTS
1. KEY MESSAGES
• Solid sales performance in all banners
• Biedronka is delivering well on the changes already implemented despite the
pressure coming from the internal basket deflation
• Pingo Doce and Recheio registered a strong growth in the first half of the year
• Top line performance allowed for EBITDA and Net Earnings to grow despite the
investment in the new businesses
3
2. KEY FIGURES
2015FIRSTHALFRESULTS
(Million €)
NET SALES
6,052
excluding F/X
EBITDA
NET ATTRIBUTABLE RESULTS
excluding non-recurrent
EPS
NET DEBT
Gearing
+ 9.8%
6,644
+ 9.1%
341
excluding F/X
EBITDA MARGIN
H1 15
H1 14
+6.3%
363
+5.3%
5.6%
5.5%
145
+3.2%
150
145
+5.3%
153
0.23
607
40.9%
0.24
386
23.5%
4
3.1. INCOME STATEMENT Q2
2015FIRSTHALFRESULTS
(Million €)
Consolidated Sales
Total Margin
Q2 15
Q2 14
3,457
Change
3,139
10.1%
735
21.3%
663
21.1%
10.8%
-538
-15.6%
-480
-15.3%
12.0%
EBITDA
197
5.7%
183
5.8%
7.7%
Depreciation
-74
-2.1%
-68
-2.2%
8.9%
EBIT
123
3.6%
115
3.7%
7.1%
-8
-0.2%
-9
-0.3%
-14.7%
4
0.1%
5
0.2%
-11.7%
-5
-0.1%
0
0.0%
n.a.
EBT
115
3.3%
111
3.5%
4.0%
Taxes
-27
-0.8%
-24
-0.8%
9.5%
Net Profit
88
2.6%
86
2.8%
2.5%
Non Controlling Interest
-4
-0.1%
-4
-0.1%
-1.7%
Net Profit attr. to JM
85
2.5%
83
2.6%
2.6%
Operating Costs
Financial Results
Profit in Associated Companies
Non-Recurrent Items
EPS (€)
0.13
0.13
2.6%
5
3.2. INCOME STATEMENT H1
2015FIRSTHALFRESULTS
(Million €)
H1 15
H1 14
Change
Consolidated Sales
6,644
Total Margin
1,411
21.2%
1,286
21.2%
9.7%
-1,048
-15.8%
-945
-15.6%
11.0%
363
5.5%
341
5.6%
6.3%
-147
-2.2%
-135
-2.2%
8.8%
EBIT
216
3.3%
207
3.4%
4.7%
Financial Results
-13
-0.2%
-18
-0.3%
-27.5%
8
0.1%
8
0.1%
-2.1%
-5
-0.1%
0
0.0%
n.a.
EBT
207
3.1%
196
3.2%
5.2%
Taxes
-49
-0.7%
-44
-0.7%
10.4%
Net Profit
158
2.4%
152
2.5%
3.7%
-8
-0.1%
-7
-0.1%
14.8%
Net Profit attr. to JM
150
2.3%
145
2.4%
3.2%
EPS (€)
0.24
Operating Costs
EBITDA
Depreciation
Profit in Associated Companies
Non-Recurrent Items
Non Controlling Interest
6,052
0.23
9.8%
3.2%
6
4. CASH FLOW
2015FIRSTHALFRESULTS
(Million €)
H1 15
H1 14
EBITDA
363
341
Interest Payment
-13
-16
11
16
-53
-58
308
284
-188
-233
-55
-102
-4
1
61
-50
Other Financial Items
Income Tax
Funds From Operations
Capex Payment
Working Capital Movement
Others
Free Cash Flow
7
5. BALANCE SHEET
2015FIRSTHALFRESULTS
(Million €)
H1 15
2014
H1 14
646
640
648
3,002
2,940
2,846
-1,732
-1,778
-1,519
110
111
114
2,026
1,912
2,091
386
273
607
Non-Controlling Interests
238
243
230
Share Capital
629
629
629
Reserves and Retained Earnings
773
767
625
Shareholders’ Funds
1,640
1,639
1,484
Gearing
23.5%
16.7%
40.9%
Debt / EBITDA (12 months)
0.5x
0.4x
0.8x
Interest Cover (12 months)
15.8x
13.3x
14.0x
Net Goodwill
Net Fixed Assets
Total Working Capital
Others
Invested Capital
Net Debt
8
6. SALES PERFORMANCE
Group
2015FIRSTHALFRESULTS
• Consolidated sales grew 9.8% to €6.6bn
• Group LFL at 3.1% fuelled by the solid and consistent performance of all banners across
the six months
• Ara and Hebe contributed with €103m of sales in H1 15 vs €63m in H1 14
Contribution to Consolidated Sales
Growth (Million €)
Contribution to Consolidated Sales Growth (Million €)
427
67
19
38
6,602
42
6,644
6,052
6,052
+9.1%
+9.8%
+9.8%
66.6%
+11.7%
6,644
67.7%
Biedronka
Pingo Doce
Recheio
H1 14
Biedronka
Pingo
Doce
Recheio
Others H1 15 excl.
F/X
F/X
H1 15
25.7%
+4.3%
24.4%
6.2%
+5.0%
5.9%
H1 14
Others
H1 15
9
6. SALES PERFORMANCE
Biedronka (i)
2015FIRSTHALFRESULTS
• Sales growth of 11.7% to €4.5bn
• Sales performance driven by new space and solid LFL volume performance
• 83 new stores opened in the first three months (net 68 more stores)
• Average market share increase of 2.3p.p.* in the first 5 months of 2015 (YoY)
SALES (Million €)
4,029
104
322
4,456
43
+11.7%
+10.6%
H1 14
LFL
New Stores/
Revampings
H1 15
excl. F/X
4,499
F/X
H1 15
* Average of GfK Bimonthly Value Shares of main retailers at Total FMCG
10
6. SALES PERFORMANCE
Biedronka (ii)
2015FIRSTHALFRESULTS
FOOD INFLATION IN POLAND
LFL SALES GROWTH
2%
2.9%
0.3%
2.4%
0%
0.3%
-1.3%
-2%
-2.7%
Q1 14
Q2 14
LFL
Q3 14
Q4 14
Q1 15
Q2 15
-4%
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
Q2 15
Basket Inflation
• Food deflation remains in the market despite having soften throughout the second quarter
• Good volume delivery maintained in Q2 15 following the offer improvement
11
6. SALES PERFORMANCE
Pingo Doce
2015FIRSTHALFRESULTS
•
Strong LFL performance, consistently delivered along the six months despite
the negative basket inflation
•
Total sales grew 4.3% to €1.6bn
•
6 stores opening and 15 remodelling in the six months
LFL SALES GROWTH (EXCL. FUEL)
4.2%
2.0%
SALES (Million €)
4.7%
1,556
65
2
1,623
2.7%
1.8%
+4.3%
-1.4%
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
H1 14
LFL
New Stores/
Revampings
H1 15
12
6. SALES PERFORMANCE
Recheio
2015FIRSTHALFRESULTS
•
Strong LFL fuelled by active commercial campaigns
•
Total sales grew 5% over the period
SALES (Million €)
LFL SALES GROWTH
4.7%
4.1%
374
16
3
0.0%
393
+5.0%
-0.4% -0.4%
-2.3%
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
H1 14
LFL
New Stores/
Revampings
H1 15
13
7. EBITDA PERFORMANCE (i)
2015FIRSTHALFRESULTS
•
Group EBITDA grew 6.3% to reach €363m, despite the investment in Biedronka and in the new
businesses
•
Start-up losses from Ara and Hebe reached €29m in the period
CONTRIBUTION TO CONSOLIDATED EBITDA GROWTH (Million €)
341
21
0
1
360
-2
3
-1
+5.3%
H1 14
Biedronka Pingo Doce Recheio
New
Businesses
363
Others
H1 15 excl.
F/X
+6.3%
F/X
H1 15
14
7. EBITDA PERFORMANCE (ii)
2015FIRSTHALFRESULTS
EBITDA Margin
• Group EBITDA margin at 5.5%,
10bps down on H1 14
7.0 6.8
4.9 4.7
Biedronka
Pingo Doce
H1 14
4.9 4.8
Recheio
H1 15
5.6 5.5
Group
• New Businesses impact of 50bps
in Group EBITDA margin
• Biedronka margin mainly
reflecting the internal basket
deflation
• Margin in Portugal resulting from
the strong commercial actions of
both Pingo Doce and Recheio
15
2015FIRSTHALFRESULTS
8. FINAL REMARKS & OUTLOOK (i)
• Good sales development in all banners
• Biedronka programme delivering in line with expectations
• Food deflation expected to persist in Poland
• Biedronka will keep fully focused on continuing implementing its programme
• Pingo Doce maintains its focus on a solid LFL sales performance while continuing
its revamping programme
• Ara plans to open the second region in Q3 15
16
2015FIRSTHALFRESULTS
•
8. FINAL REMARKS & OUTLOOK (ii)
Outlook for the year confirmed
• Biedronka will now focus in flexing the approach to urban and non-urban stores
along with the necessary changes in store layout. Despite the challenges brought
by this execution, the Company will also work in maintaining high levels of
operating efficiency, confirming EBITDA margin floor for the year at 6.5%
• Store opening programme confirmed with c.100 new Biedronka stores expected
• EBITDA losses for the two new businesses – Ara and Hebe – expected in the
range €60-70m (excl. F/X)
• Capex for the year expected at c. €500m, with most store revampings taking
place in H2 15
17
2015FIRSTHALFRESULTS
Disclaimer
Statements in this presentation that are forward-looking statements are based on current expectations of
future events and are subject to risks and uncertainties that could cause actual results to differ materially from
those expressed or implied by such statements. The risks and uncertainties relate to factors that are beyond
Jerónimo Martins’ ability to control or estimate precisely, such as general economic conditions, credit markets,
foreign exchange fluctuations and regulatory developments.
Except as required by any applicable law or regulation, Jerónimo Martins assumes no obligation to update the
information contained in this release or to notify a reader in the event that any matter stated herein changes
or becomes inaccurate.
18
2015 FIRST HALF
RESULTS
February
2013
July27,30,
2015