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Corporate Presentation Legal disclaimer This document does not constitute or form part of any purchase, sales or Exchange offer, nor is it an invitation to draw up a purchase sales or exchange offer, or advice on any stock issued by Distribuidora
Legal disclaimer
This document does not constitute or form part of any purchase, sales or Exchange offer, nor is it an invitation to draw up a purchase sales or exchange offer, or advice on any stock issued by Distribuidora Internacional de Alimentación, S.A. (“DIA” or the “Company”). Nor shall this document or any part of it form part of any offer for sale or solicitation of any offer to buy any securities the basis of or be relied on in connection with any contract or commitment to purchase shares. DIA cautions that this document contains forward-looking statements and information relating to DIA and include, without limitation, estimates, projections or forecast relating to possible future trends and performance of DIA that are based on the beliefs of its management as well as assumptions made and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events and are subject to risks, uncertainties and assumptions about the Company and its subsidiaries, including, among other things. In light of these risks, uncertainties and assumptions, the events or circumstances referred to in the forward-looking statements may not occur. None of the future projections, expectations, estimates, guidance or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates, guidance or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. These forward looking statements speak only as of the date on which they are made and the information, knowledge and views available on the date on which they are made; such knowledge, information and views may change at any time. Forward-looking statements may be identified by words such as “expects”, “anticipates”, “forecasts”, “estimates” and similar expressions. Current and future analysts, brokers and investors must operate only on the basis of their own judgment taking into account this disclaimer, as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as its considers necessary or appropriate in the circumstances and not reliance on the information contained in the presentation. In making this presentation available, DIA gives no advice and makes no recommendation to buy, shell or otherwise deal in shares in DIA or in any other securities or investments whatsoever. These analysts, brokers and investors must bear in mind that these estimates, projections and forecasts do not imply any guarantee of DIA´s future performance and results, price, margins, exchange rates, or other events, which are subject to risks, uncertainties and other factors beyond DIA´s control, such that the future results and the real performance could differ substantially from these forecasts, projections and estimates. The risks and uncertainties which could affect the information provided and very difficult to anticipate and predict. DIA does not assume the obligation of publicly reviewing or updating these statements in case unforeseen changes or events occur which could affect these statements. DIA provides information on these and other factors which could affect the business and the results in the documents it presents to the CNMV (Comisión Nacional de Mercado de Valores) in Spain. Accordingly, these estimates, projections and forecast must not be taken as a guarantee of future results, and the directors or managers are not responsible for any possible deviation which could arise in terms of the different factors which influence the future performance of the company. None of the Company nor any of its employees, officers, directors, advisers, representatives, agents or affiliates shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Certain information contained in this presentation is based on management accounts and estimates of the Company and has not been audited or reviewed by the Company’s auditors. Recipients should not place undue reliance on this information. This presentation includes certain non-IFRS financial measures or expressions (gross sales under banner, comparable growth of gross sales under banner, adjusted EBITDA, adjusted EBIT, etc.) which have not been subject to a financial audit for any period. The information contained in this presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and the information does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the information. You are solely responsible for seeking independent professional advice in relation to the information contained herein and any action taken on the basis of the information contained herein. No responsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information.
Index
02 Key Investment Highlights 8 03 Financial review 25 01 Introduction 4 04 Appendix - additional information 28
Introduction
01
DIA at a glance
A story of profitable growth in food retail
Notes
- 1. Excluding France, Turkey and China; 2. Ex-currency; 3. Top 100 global franchises (Franchise Direct);
- 4. By # of publicly published franchised stores; 5) Weight in sales of FMCG in Spain
Continued growth profile1 (#, €m) Key facts Global and diversified footprint Discounter of reference in largest markets 1. 1. #1 #1 globa bal l liste sted d proxim ximit ity y discount
- unter
2. Top 20 franchisor worldwide3/ #1 in food retail in Europe4 3. Loyal customer base (+75% sales through DIA card) 4. Innovation focus (+50% private label penetration5) SIZABLE AND UNIQUE BUSINESS MODEL… 5. 5. EUR UR10 10.3bn .3bn gross ss sale les s under r banne ner r / EUR UR8.7 8.7bn bn net sale les s 6. EUR628m adjusted EBITDA (7.2% margin) 7. 19.4% ROI and 1.4x net debt / adjusted EBITDA …FUELLED BY INDUSTRY-LEADING FINANCIAL RESULTS DISCOUNTERS MARKET POSITION
IBERIA EMERGING
FOOD RETAIL MARKET POSITION #1 #3 #3 #5 #1 #4 #1 #5
Source: Kantar Worldpanel, Nielsen
# STORES ADJUSTED EBITDA GROSS SALES UNDER BANNER
34% 66%
2016
EUR10.3bn 19% 81%
2016
EUR628m
26% 74%
2016
7,420
49% 51%
2016
7,420
Company-owned Franchise Iberia Emerging
7,420 4,355
2016
# STORES ADJUSTED EBITDA GROSS SALES UNDER BANNER
2011 2016 2011
10,314 7,810 628 471
2016 2011
Review of DIA’s timeline
Building an Iberian leader
(80’s & 90’s)
International expansion
(2000’s)
Developing new 2P (price & proximity) format and refocusing on core markets
(2010’s) 1979
Creation of DIA by Promodès in Spain
1989
New model: the DIA franchise
1993
First store
- pened in
Portugal
1997
First DIA store in Argentina
2000
Integration in Carrefour
2001
First DIA store
- pened in Brazil
(Sao Paulo)
2003
Establishment in China
2011
IPO in the Spanish Stock Exchange Rio Grande do Sul
- pening
2014
Exit from France El Árbol acquisition Bahia region opening
2013
Exit from Turkey Minas Gerais region
- pening
Acquisition of Schlecker Iberia
2015
Acquisition of 144 Eroski stores Launch of La Plaza banner Closing of procurement agreements (Eroski, Intermarché and Casino)
2016
DIA on Amazon Prime Now First stores in Paraguay (MFs) Opening in Rio de Janeiro
2017
Private label agreement with Eroski
DIA’s geographical reach
(December 2016)
Notes
- 1. Paraguay master franchise operations started in late 2016
Key facts #Total Stores #Franchises Gross Sales(€m) Discounter market position 623 256 848 #3 Key facts # Total Stores # Franchises Gross Sales(€m) Discounter market position 872 576 1,643 #1 Key facts #Total Stores #Franchises Gross Sales(€m) Discounter market position 1,050 671 1,857 #1 Key facts #Total Stores #Franchises Gross Sales(€m) Discounter market position 4,875 2,147 5,967 #1
Key Investment Highlights
02
Key investment highlights
1
Leading listed discounter rightly focused on offering the most valuable attributes for today’s customers: Price & Proximity
2
Multi-banner, multi-local, customer-centric and innovative business model well-fitted to capture digital
- pportunities
3
Flexible and cost-efficient
- perations levered by a
sizeable entrepreneurial network, delivering higher stable margins and superior returns on investment
4
Systematic delivery of
- rganic and inorganic
growth with strong
- utlook
5
Experienced management team with a defined strategy and strong execution track-record
Leading listed discounter…
[#1] listed discounter worldwide, having significantly gained market share in the last few years
1
Global discounters ranking (by # stores; ‘000)
Source Company fillings; Lidl and Aldi based on latest info available (2014)
#1 #3
10,006 9,937 7,420 6,146 3,107
DIA’s market share gain in its largest geographies #1 #1 #1 #1 #1 #1 7.1%
2011
8.6%
2016
4.8%
2011
7.0%
2016
6.0%
2011
12.4%
2016
#
DIA’s discounter position Top 5 players market share
…rightly focused on core customer values: Price & Proximity
Proximity stores as the most resilient format and expected to drive global food retail growth in the mid-term
Current trends in the global food retail sector… …support DIA’s long-term strategic positioning Mature e market ets Emerging market ets
- Agein
ing populatio ion
- Higher shoppin
ing frequency
- Less
s people le per r home / reduced stora rage capacit ity
- Stagnatio
ion of pers rsonal l income / valu lue-fo for-money y approach
- Unemploym
yment remains s high in certa rtain geographie ies
- More
re women in the work rkfo forc rce
- Incre
rease sed weight of modern distrib ibutio ion
- Risin
ing of oil l and energy rgy costs
- Incre
rease se of urban popula latio ion
- Rise of middle
le class ss
- Higher pers
rsonnel l costs sts
Source Euromonitor
SPAIN BRAZIL ARGENTINA
7%
5% 2% (8%) (2%)
(1%)
11-16 CAGR 16-21 CAGR
8%
6% 6% (9%) (6%)
(2%)
11-16 CAGR 16-21 CAGR
6%
(3%) (1%)
6%
11-16 CAGR 16-21 CAGR
6% 7%
Hard discounters Hypermarkets Supermarkets Department stores Convenience
Convenience & Discount Hypermarkets Supermarkets
1
Leading price image across all geographies
Price as a differentiating feature vs. competitors
- 100
- 80
- 60
- 40
- 20
20 40 60 80 may-13 nov-13 may-14 nov-14 may-15 dec-15 may-16 nov-16 DIA Competitor A Competitor B Competitor C Competitor D Competitor E Competitor F Competitor G
- 40
- 20
20 40 60 80 100 nov-13 may-14 nov-14 may-15 dec-15 may-16 nov-16 DIA Competitor A Competitor B Competitor C Competitor D Competitor E Competitor F Competitor G Competitor H
Source DIA and Kantar
- 30
- 20
- 10
10 20 30 40 50 60 70 May-yy Nov-yy May-yy Nov-yy May-yy Dec-yy May-yy Nov-yy DIA Competitor A Competitor B Competitor C Competitor D Competitor E
1
May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16
Multi-banner, multi-local approach
Multi-format/brand strategy to meet all customers’ expectations
2
Notes
- 1. DIA operates the proximity discount format in other countries under different brands (i.e. Minipreço and Mais Perto banners in Portugal
- 2. Includes DIA’s cash&carry stores, which represent 0.5% of the total
Multi-banner and… …multi-local approach BANNER TYPE
- AVG. SIZE (Sqm)
Proxim ximit ity Attra ractio ion Proxim ximit ity y supermarket Proxim ximit ity HPC store re 400 400 - 1,000 700 700 - 800 800 200 200 OBJECTIVES
- Best pric
ice
- Fre
requency y
(market format) /
/ bask sket size (maxi
i format)
- Complete
assor sortment
- Best pric
ice
- Bask
sket size ze
- Fre
resh sh focus
- Best pric
ice
- Cross-se
selling lling with DIA 2016 STORE WEIGHT
79% 4% 17%
2Pf business model focused on customer satisfaction
The 2Pf formula: price and proximity with best-in-class service provided by franchisees
2
Customers at the centre of DIA’s business model… … resulting in tangible results on customer satisfaction
Notes
- 1. Net Promoter Score (NPS) as metric for assessing customer satisfaction. Franchisee satisfaction is measured as satisfied customers less non-satisfied
Variable remuneration at store level linked to Net Promoter Score
Net Promote romoter r Score1
(improve vement from Nov-2013 to Nov-2016) 2016) Continued digitalisation Multi-brand to meet customers’ expectations
Proximity ty Price Loya yalty ty program amme Fr Franch chise se Ef Effici cien ency cy & Innov
- vati
ation
- n
Multi- priva vate te label el +21.2pp +7.1pp +5.8pp
DIA Club: much more than a loyalty programme
Loyalty programme based on targeted marketing actions driving increased sales, average basket and frequency
2
Notes
- 1. In euro, indexed to no club members = 100
- 2. Data refers to Sao Paulo
Targeted marketing actions bringing price advantage to card holders …widely used by our customer base… …providing tangible benefits for DIA
In In-dept epth h customer tomer know
- wledge
edge to fine ne-tun tune targe rgeted ed and nd cost-eff effic icie ient mark rketing ting actions ions Signif gnific icant ant sav aving ings for r end-cus custom tomer r (+5% 5% per annu num) Incr crea eased ed barga gainin ining g power er against gainst suppli ppliers rs
Dual price On-site and On-line discount coupons Customer financing (FinanDIA)
Dia Club APP
Over 700k users in Spain 69% 68% 91% 86% 76%
2
FY 2016 data 8.1 1.7 4.3 4.1 18.3 Penetration (as % of sales) Active card holders (million) Average ticket (Dia brand)
100 240
No DIA Club member DIA Club customer
+140
Outstanding private label proposition backed-by strong innovation
Successful implementation of DIA’s private label in all countries driving superior price and quality image
2
A continued and cost-efficient innovation funnel… … with proven track record
Sele lectio ion n of base products Testin ing Manufacture Finis ished hed products
- Choic
ice and distr strib ibutio ion of product
- Desc
scrip iptio ion of qualit ity y speci cifica ficatio ions
Notes
- 1. Weight in Fast Moving Consumer Good sales
- Over
r 3,000 panel tests s per r year r for r valida lidatio ion and control rol
- Sourc
rcin ing (sele electio ction of suppli lier ers) s)
- Logisti
istics
- Displa
splay
- Mult
lti-ling lingual packaging
- Systematic
ic qualit ity y control l at DIA A ware rehouse se labs
- Addit
itio ional control rols s in extern rnal l laboratorie ies Penetratio ion1 of DIA’S private label vs. overall market (as a % of sales)
+44% SALES IN 2016
Latest launches
39% 53% 32% 54% 7% 5% 37% 35%
DIA PL share (%) Market PL share (%)
DIA poised for digital transformation
New measures have been implemented with a strong focus on improving operations for the 3 main pillars of the Company: customers, stores and local partners
2
Notes
- 1. Source Nielsen (Measured as satisfied less non-satisfied)
Customers Store management Franchisees
Digital transformation
> EUR120m sales in Spain in 2020 (x6 vs 2016) Greater streamlining of tasks and improved quality of procedures + 9 pp improvement in franchise satisfaction1
- Store
re management: pric ice, checks, s, offers
- Inventory:
y: stock control, l, generatio ion of file les
- Logisti
istic/Tr Transpo sport serv rvic ice: dail ily y monit itorin ing of servi rvice ce frequency y and fleet
- Shoppin
ing list st
- Access
ss to digit itali lise sed disc scount coupons
- Monthly
ly expense se control
- Digit
ital l loya yalt lty y card rd
- +3,000 Clic
ick&Co &Coll llec ect points
- Fra
ranchise isee App
- Smart
rt tra rackin ing of deliv iverie ies
- Dir
irect contact line with Regio ional l Centres
Franchise model: a fundamental pillar of the business
Unique franchise proposition supporting a flexible and efficient operation
3
Top 20 franchisor worldwide1/ #1 in food retail in Europe2 Well balanced store mix …leading to a sustainable business model in the long run Continued increase of the franchising activity…
Notes
- 1. Top 100 global franchises (Franchise Direct); 2. By # of publicly published franchised stores; 3. Excludes China)
% of owned and franchised stores by segment
56% 44% 5,498 35% 65% 1,922
% Owned % Franchised
- Profit
fitable le capilla llarit ity
- Day-to
to-day y management flexibili xibility
- Effic
icie ient management of opera ratio ional expense ses
- Reduced pers
rsonnel expense ses
- Higher control
l of shri rinkage
- Lower rotatio
ion of pers rsonnel vs. owned store res
- Higher commit
itment / top serv rvic ice
- Better knowle
ledge of customers
Top franchise ranking by geography and years of experience in the country
#1 #1
Over 37 years retail and 27 franchising track-record Over 23 years retail and 20 franchising track-record
#1 #1
Over 19 years retail and 15 franchising track-record Over 15 years retail and 14 franchising track-record
#1
Weight of franchises (# stores)3
34% 34% 40% 40% 44% 44% 42% 52% 42% 55% 47% 60% 49% 61%
2011 2012 2013 2014 2015 2016 2010
DIA banner stores Total stores
Integrated and cost-efficient business model
Fully integrated and cost-effective supply chain based on our proprietary IT infrastructure resulting in recurrent industry-leading productivity and return on investment
3
Notes
- 1. DIA based on 2016 figures; Peers’ data based on 2015 figures; employees on a FTE basis
- 2. ROI as EBITDAR / Avg. invested capital; Avg. invested capital = Avg total assets exc cash + Avg D&A Avg account payables – Avg accrued liabilities + x5 Rent adjustment
- 3. Carrefour, Casino, Jeronimo Martins,, Metro, Morrison, Sainsbury, Sonae and Tesco
EBITDA per employee (k€)1 Efficient and integrated supply chain Return on investment 2016 (%)1,2
Strong franchise platform Strict capital allocation process
14.7 10.2
Average peers3
+44%
19.4% 11.9%
Average peers3
+750bps
Stre reamlin lined, ed, fully ly integrated retail il capabilit litie ies Propri rietary y management ment system stem End-to to-end scope
Supplier Warehouse Transport Owned Store / Franchise
Efficient store portfolio management
Active store portfolio management to adapt to evolving customer requirements
3
Active Store Portfolio Management
Cont ntin inued ued re rent negotiation gotiation Refur furbis bishment ment plan ans Active e store network k
- ptimis
timisatio ion
Disciplined and smart capex allocation Rental flexibility Continued effort towards sustainability Active network right-sizing
+1,400
transfers from COCO O to COFO stores since 2011 11
+2,650 openings
nings and
+1,300 closures
ures cumulat lated d since 2011
- 90% Lease
ase-hold
- ld
- Signif
gnific icant ant lessor
- r
atomisa
- misatio
ion
- Cont
ntrac ract t flexib ibili ility ty < 1 ye year comm mmitme itment nt on ave average rage
- 7.0%
0% re rental tal per squar uare meter er re reduct uctio ion n in 2011 11-16 16 period iod
Notes
- 1. Includes rental costs related to property and equipment and revenue from lease agreements; Rents / AVG sqm Company owned company
- perated + company owned franchise operated
Superior, resilient and consistent financial profile
4
Notes
- 1. Ex-currency
- 2. Defined as Net debt / Adjusted EBITDA
Gross sales under banner evolution (EURm) Stores (#) Net debt & leverage2 evolution (EURm) Adjusted EBITDA (EURm)
2011 2012 2013 2014 2015 2016
4,355 4,617 6,102 6,938 7,337 7,420
2011 2012 2013 2014 2015 2016
7,810 8,587 9,096 9,199 10,306 10,314
2011 2012 2013 2014 2015 2016
466 529 581 589 614 628
2011 2012 2013 2014 2015 2016
576 629 651 533 1,132 878 1.2x 1.2x 1.1x 0.9x 1.9x 1.4x
Solid track record of integrating value enhancing acquisitions
Recent acquisitions not only have helped to diversify the group but also improved core DIA business
4
Acquisition of the Iberian
- perations of
Feb 2013
Acquisition of
Dec 2014
Acquisition of 144 stores in Iberia from
Apr 2015
Effective capital allocation at low multiples… …with tangible results and further uplift potential
- EV of EUR69m
- Proximity HPC
specialist
- 1,129 COCO stores
- Remodelling capex
- f c.EUR30m
- EV of EUR125m
- Iberian supermarket
chain with large fresh offer (+50%)
- 451 stores
- Remodelling capex
- f c.EUR50m
- EUR500m tax shield
- EV of EUR135m
- 144 proximity
supermarkets (mainly in Madrid)
- Remodelling capex
- f c.EUR25m
Ke Key synergies es Curren ent t % of Integrati tion
- Cross-sellin
ing
- Privat
ate label development
- Sourcing in HPC
categories es
Ke Key synergies es Curren ent t % of Integrati tion
- Sourcing, logistics and
- ther opex
- Price positioning
- Tax shield
- New fresh categorie
ies
Ke Key synergies es Curren ent t % of Integrati tion
- Sourcing and logistics
- In
In-Store efficie iency cy
Transa sacti tion multi tiples es
EV/Sales EV/ EBITDA
0.19x 2.2x
EV/Sales EV/ EBITDA
0.19x Negative ebitda nm
EV/Sales EV/ EBITDA
0.27x nm
Additional avenues of growth going forward
Review of selected profitability enhancement and top-line growth opportunities
4
Source Company information, Kantar
Product enhancement and cost optimisation Significant white-space in core markets and M&A opportunities
Dev evel elopmen ent of recentl tly-si signed ed suppl plier er allian ance ces
Sourcing agreements Private label agreement with
Conti tinued effici cien ency cy program ams
- In-store inventory optimisation
- Active management of store portfolio
(i.e. rents, etc)
- Non-stop digitalisation
- Energy saving programmes/plans
Significa cant t white te-sp spac ace e and maste ter franch chise se opportun tunities es Remar arkabl kable e conso solidat ation potenti tial al
- Latam platform already in place
- Macro conditions with positive prospects
- Food retail market expected to register
healthy growth rates (+6.0% in Brazil and +6.4% in Argentina)
- Modern distribution <50% share vs. c.80%
in Western Europe
- Lower penetration of convenience and
discounters (c.20% vs. c.30% in Western Europe)
- Further growth potential through master-
franchise agreements with local experienced entrepreneurs implying limited capex
- Room for further capillarity
in Iberia supported by recovering LFLs
- TOP 5 players in Spain
<50% market share
- Significant market share
gain potential in Portugal
>1,100
stores by 2020
>1,500
stores by 2020
Worked at P&G and Schweppes Founder and CEO of Openbank and Director at British American Tobacco Marketing manager at Cadbury Schweppes, Chairman & CEO
- f RJR Nabisco and Parques Reunidos
Worked at P&G for 33 years Currently board member of Zinkia Entertainment CEO at Dufry AG Worked at TNT Leisure and Aldeasa Worked at P&G , Ahold, Digsa, CEO of Toys R Us Currently board member of Pascual General Manager of Santander , CEO of Sabadell and VP and CEO of Caixabank Current Board member of Société Générale Worked at Cadbury, Coca Cola Schweppes, Debenhams and The Original Factory Shop Currently board member of Brown Group Worked at Bain, CEO of Microsoft Iberia and VP for EMEA of Microsoft Business solutions
Experienced management team supported by an industry-leading Board
DIA’s governing bodies as an example of the highest corporate governance standards
5
Key management Independent/External Directors of the Board
NAME
Ricardo Currás
CEO
31 31 31 31
Diego Cavestany
Chief Executive New Business DIA Spain Officer
29 29 29 29
Antonio Coto
Executive Manager for Latin America and Partnerships
30 30 30 30
Juan Cubillo
Business & Merchandise Executive Manager
23 23 23 23
Javier Lacalle
Chief Resources Officer & China Executive
32 32 32 32
Amando Sánchez
Chief Services Officer & Portugal Executive
5 20 20
Faustino Dominguez
Chief Executive DIA Banner Spain Officer
26 26 26 26
YEARS AT DIA YEARS OF INDUSTRY EXP. NAME
Ana María Llopis
Non-Executive Chairwoman
Mariano Martín
Second Vice Chairman
Antonio Urcelay
Board member
Juan María Nin
Board member
Angela Spindler
Board member
Richard Golding
First Vice Chairman
Julián Díaz
Board member
SELECTED PROFESSIONAL EXPERIENCE
María Garaña
Board member
Former CFO at Inditex and El Corte Inglés Purchase Manager
Borja de la Cierva
Board member
Financial review
03
Flexible and efficient capital structure
Notes
- 1. Annualised Total Shareholders Return from 5th July 2011 to 16th June 2017
- 2. Bloomberg Europe 500 Food Retailers Index
Sustainable shareholder returns
Our efficient capital structure allows us to maintain a growing dividend policy, well above the industry average
Growing shareholder remuneration Annualised TSR1
40-50%
- f underlying EPS
pay-out
c.EUR1bn
- f total remuneration to
shareholders since 2011
12% 6% 1%
DIA IBEX 35 BEFOODR2
0.11
2011 2012 2013 2014 2015 2016
0.13 0.16 0.18 0.20 0.21
Best-in-class financial metrics
DIA enjoys industry leading returns on investment and above average remuneration levels while maintaining a more conservative approach towards leverage than its peers
Notes
- 1. Return on Investment defined as EBITDAR/Average Invested Capital. Average Invested Capital defined as Equity + Net debt + 5x Rent adjustment + Accumulated D&A
- 2. Dividend yield based on current share price (as of April 24th 2017) and includes potential share buy backs already communicated to the market
- 3. Market average defined as the average for Carrefour, Casino, Jeronimo Martins, Metro, Morrisons, Sainsbury, Sonae and Tesco
2016 Return on Investment (ROI) (%)1
19.4% 11.9%
INDUSTRY AVERAGE3 DIA
+750b 0bps
2016 Leverage (Net debt / Adjusted EBITDA)
1.9x 1.4x
INDUSTRY AVERAGE3 DIA
(0.5x 5x)
2016 Expected dividend yield2 (%)
4.1% 2.9%
INDUSTRY AVERAGE3 DIA
+1.2% 2%
Appendix
Additional information
04
Definition of Alternative Performance Measures (APM)
- Gross sales under banner: total turnover value
- btained in stores, including indirect taxes (sales
receipt value) in all the company’s stores, both
- wned and franchised.
- Net sales: sum of the net sales generated in our
integrated stores and sales to franchises.
- LFL sales growth under banner: growth rate of
gross sales under banner at constant currency of the stores that have been operating for more than thirteen months under the same business conditions.
- Adjusted EBITDA: operating profit after adding
back non-recurring costs, impairments, re- estimation of useful life and gains/losses arisen
- n the disposal of assets and depreciation and
amortization of fixed assets.
- Adjusted EBIT: operating profit after adding back non-
recurring costs, impairment and re-estimation of useful life and gains/losses arisen on the disposal of assets.
- Underlying net profit: net income calculated on net profit
attributable to the parent company, excluding non- recurring items (restructuring costs, impairment and re- estimation of useful life, gain/losses on disposal of assets, tax litigations, exceptional financial expenses and equity derivatives), discontinued operations and the corresponding tax impact.
- Underlying EPS: fraction of the company’s profit
calculated as underlying net profit divided by the weighted average number of shares.
- Cash From Operations (CFO): adjusted EBITDA less
non-recurring cash items less capex on an organic basis.