DIA Group Results 2016 Madrid, 23 February 2017 DIA Group Results - PowerPoint PPT Presentation

DIA Group Results 2016 Madrid, 23 February 2017

DIA Group Results 2016 2016 in figures 01 3 Contribution to Spanish society 02 4 40 million clients who trust DIA 03 5 04 How DIA reaches the customer 6 05 Franchises: 4,000 strategic partners 7 06 Suppliers 8 07 Corporate governance 9 08 Projects for society 10 11 09 Looking at 2017 13 09 Outstanding improvement in Cash From Operations 14 09 Track-record of delivering best-in-class returns 15 09 Financial outlook

01 2016 in figures Number of stores Underlying net profit* Gross sales under banner* 7,799 EUR10.55bn EUR258.6m +10.2% +81 +3.9% Positive LFL in all regions: +8.7% Operating cash flow EUR207m * In local currency 3

02 Contribution to Spanish society Employment Contribution to the Investment * state 26,602 EUR44.8m Direct Paid in direct taxes EUR198m / +30% 7,848 Franchises EUR207m EUR524m Collected Stores, warehouses, Paid in salaries Environmental improvements, EUR168m 9,767 IT Social Security People trained Continue to focus on, and trust in, Spain * Organic growth 4

03 40 million customers trust in DIA Digitalisation Listening to the customer 8 +9 million Online sales platforms: Dia, Clarel, Amazon, La Plaza de Dia, Surveys sent out Oportunidades Dia Spain and Argentina, 4 Tmall and Netease Customer community programs: 3 Demos la Vuelta al Dia, Expertas en Mobile payment apps and cash Ahorro, Especialistas em economia withdrawals: ING, Samsung and Wechat +120,000 Up to 700,000 Clients have been on these programmes DIA App downloads 5

04 How DIA reaches the customer Omni-channel focus Commercial policy 1.7bn 8 Coupons issued Banners 76% 7 Of sales are carried out with Brands Club Dia 3x 7,500 Online sales increase Own-label SKUs +66% +730,000 IT investment Quality checks 6

05 Franchises: 3,636 strategic partners Helping entrepreneurs Building loyalty 3,969 / +272 Franchises 74% / +9pp EUR19M 25,135 Exports Degree of satisfaction En productos Jobs created exportados 427 31 31 EUR204,6m Multi-franchisees Paíse Countries Financing 1,400 s EUR27.5m Franchisees trained in store Investment management 2 +900 Openings: Supervisors Rio de Janeiro and Paraguay 7

06 Suppliers In Spain 1,528 Suppliers Benefits for the 1,382 consumer SMEs 3 146 Commercial alliances: Multinationals Eroski, Intermarché and Casino DIA purchases EUR2.164m SME turnover EUR2.067m Multinational turnover 8 * Located in Spain, with a Spanish tax ID number

07 Corporate governance Board of Corporate directors policies 2 11 Resignations Approval and publication to 2 comply with the Ethics channel New joiners recommendations of the 53 10 CNMV’s Code of Complaints Best Practice Members in total 27 Queries 2,981 Employees trained in Code of Ethics 9

08 Projects for society Sports Children Food Empleo Inversión FEB FEDER 4.5m kilos 44.230 DIA Group’s first-ever Spain. Seventh run for hope EUR354M Donated to Food Banks in Spain, sponsorship Directo CRAAG Portugal, Argentina, Brazil, and Tiendas, almacenes… UNIVERSO MUJER China Race in Brazil for child cancer Franquicias A programme for the 15,000 kilos FUTEBOL DE RUA development of women in EUR524M Of supplies for social events society Social inclusion programme in Portugal Masa salarial 14 SUPERLIGA DIA-FEB DÍA DEL NIÑO EUR168M DIA’s first mixed juvenile Oxfam Intermon products for Collection and donation in Seguros Sociales championship sale in DIA Argentina for disadvantaged 15.000 children More than 140 social actions in all of DIA’s countries 10

09 Looking at 2017 DIA’s growth base: technology and AGREEMENTS WITH THIRD partnership to benefit the customer CUSTOMER PARTIES 6 3 +120,000 Partnerships: +9m Payment by Amazon, ING, smartphone: Customers have DIGITALISATION Samsung, Wechat, Surveys sent ING, been involved in DIA Netaease, T-Mall Samsung, meetings 8 Wechat, 1m Online sales platforms Copies of 3x magazines for customers +66% Online sales IT investment 11

Financial Rewiev

10 Outstanding improvement in Cash From Operations adj. EBITDA EUR m 625 Cash From Operations * 610 Capex 207 2015 2016 EUR EUR m m 160 +197 ** 366 345 Non-recurring cash items 2015 2016 EUR m 94 73 2015 2016 * Defined as adjusted EBITDA – Non-recurring cash items – Capex; on organic basis 2015 2016 13 ** Acquisitions

Track-record of delivering best-in-class returns, backed by a 10 robust balance sheet and attractive shareholder remuneration Solid balance sheet Growing dividend Industry leading returns 1,132 0.21 19.4% 878 11.9% 0.11 2015 2016 Industry DIA 2011 2016 List of ROI peers (2015 data): Carrefour, Casino, Jeronimo Martins,, Metro, Morrison, Sainsbury, Sonae & Tesco ROI as adj. operating income (EBITDAR) / Avg. invested capital 14 Avg. invested capital = Avg total assets exc cash + Avg D&A - Avg account payables – Avg accrued liabilities + x5 Rent adjustment

10 Financial outlook 2015-18 period target Mid-single-digit Adj. EBITDA growth reiterated: growth in gross sales and margin • EUR750m of cumulated under banner (in local stability for 2017 Cash From Operations. currency) in 2017 • 7% organic sales CAGR (ex-currency ) 15

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