PRESENTATION OF Q1 2020 & 2019 ANNUAL RESULTS 1 2019 - - PowerPoint PPT Presentation
PRESENTATION OF Q1 2020 & 2019 ANNUAL RESULTS 1 2019 HIGHLIGHTS Store Openings Bond debt SUMMARY ESG Commitments Opening of the Agadir F&V platform 2 FINANCIAL RESULTS Consolidated accounts Q1 2020 Consolidated
2019 HIGHLIGHTS ➢Store Openings ➢Bond debt ➢ESG Commitments ➢Opening of the Agadir F&V platform
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2020 PERSPECTIVES ➢Business prospects
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FINANCIAL RESULTS ➢Consolidated accounts Q1 2020 ➢Consolidated accounts 2019 ➢Balance sheet indicators 2019
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➢Openings ➢Bond debt ➢SGE Commitments ➢Opening of the Agadir’s F&V platform.
Summary
OPENINGS FOR FISCAL YEAR 2019
SUMMARY TABLE
Comments
▪ Opening of 12 Carrefour Market and 1 Hypermarket "Dar Bouazza" in Casablanca. ▪ 13,866 sqm. opened in 2019 (including 1,700 sqm. of additional sales area for the "Targa" Marrakesh hypermarket) ▪ Closing of the Carrefour Market Casablanca Bethune store Supermarkets Hypermarkets Hyper Cash Total Group Number of stores on Dec. 2018 73 8 11 92 Sales in sqm. 83,034 44,800 59,564 187,398 In % of Group total 44% 24% 32% 100% Openings 12 1 13 Sales area opened in sqm. 7,666 6,200 13,866 Closings 1 1 Sales area closed in sqm. 500 500 Number of stores on Dec. 2019 84 9 11 104 Sales area in sqm. 90,200 51,000 59,564 200,764 In % of Group total 45% 25% 30% 100%
A NETWORK COVERING 26 CITIES
Operation Amount Terms and conditions of reimbursement Operation’s Objectives Going rate 750 MMAD
Average Interest Rate of 3.4%
50% in-fine over 5 years 50% amortized over 7 years
▪ The loan was subscribed by 49 subscribers of different categories (credit institutions, insurance companies, pension funds, financial companies and CDG) with a subscription rate of 7.4x. ▪ Only Type I investors (former holders of 2014 bonds) were served.
BOND ISSUANCE CHARACTERISTICS AND OBJECTIVES OF THE OPERATION
➢ Our Group aims to become the leading SGE player in the retail industry in Morocco. Our policy on social responsibility is based on five pillars: ➢ Client Focus ➢ Development of Human Capital, ➢ Social Development, ➢ Environment protection, ➢ Governance and Business Ethics,
OUR ENVIRONMENTAL INITIATIVES
World Clean Up Day ➢ Extensive beach cleaning operation conducted in 2019 in partnership with the Mohammed VI Foundation for the Preservation of the Environment. ➢ The operation took place in 4 beaches in Morocco (Salé, Casablanca, Nador and Tangier) and more than 8 tons of waste were collected.
Solar Panels
➢ As part of the diversification of energy supply sources, the Group has undertaken an initiative to cover stores with a solar panel roof that allows near self-sufficient energy. ➢ The experiment, carried out at the Atacadao Meknes site and which required more than 6 months of work, has been operational since October 2019. It has reduced energy costs by 23%. ➢ An ambitious project for a covered parking in the Skhirat distribution center is being studied and will be tested by the beginning of 2021.
Waste management and recycling
➢ Label'Vie Group is planning the widespread installation of waste management devices such as compactors. ➢ In 2019, 6,700 tons of waste were collected and reused.
TRAINING, AT THE HEART OF OUR BUSINESS
➢O n e o f t h e b i g g e s t recruiting companies in Morocco (1,300 people recruited in 2019) ➢An internal training school: 1,500 beneficiaries each year, 22 training cycles and approximately 180 internal trainers; ➢Studied and adapted trainings delivered each year for more than 2,000 employees; ➢Partnerships with Schools & Universities in order to set up professional and alternance programs: 103 students trained in 2019.
Certificate of Operator of Meats in alternance with the IRTSE of Kenitra Professional License in Trade and Distribution in alternance with the FSJES of Settat Degree in Agri-food Sciences and Business Techniques with the FST of Al Hoceima Management of Trade & Distribution in Food Processing with the FST of Settat
ATTESTATION LEVEL OF MATURITY ISO 26000
➢ Opening in September 2019 of the Fruits & Veggie regional distribution center of 1,200 sqm on 1 ha land reserve. ➢ Optimal location close to the country’s largest farms ➢ Regional dimension: 80% of the assortment supplied and distributed regionally ➢ Domestic dimension: purchasing from the farms for the entire network
FINANCIAL RESULTS ➢ Q1 2020 Consolidated accounts ➢ 2019 Consolidated accounts ➢ 2019 Balance sheet indicators
Q1 2020 MAIN FINANCIAL INDICATORS KEY EVOLUTIONS
Consolidated Capex Consolidated Debt Revenue
In MMAD
Q1 2019 Q1 2020 72.0 82.0
+26%
Q1 2019 Q2 2020 2,890.0 2,288.0
+5%
Q1 2019 Q1 2020 2,774.0 2,573.0
Q1 2020 MAIN FINANCIAL INDICATORS
MAIN FINANCIAL INDICATORS KEY EVOLUTIONS
Gross Operating Profit Net income Operating Income Sales
In MMAD
2018 Réalisé 2019 788.8 704.8
+12% +15%
2018 Réalisé 2019 9,442.7 8,217.3
+9%
2018 Réalisé 2019 440.1 402.1
+10%
2018 Réalisé 2019 318.0 288.4
2018 2019 Financements Permanents Inves;ssement
Financing Debt Fiancning Debt
Fixed assets and Financing Traffic
+14%
2018 Réalisé 2019 54,044.8 47,461.4
In thousands of bills
Investment (excl. securization)
in MMAD
2018 Réalisé 2019 640.5 519.4
+23%
MAIN FINANCIAL INDICATORS
KEY EVOLUTIONS
in MMAD
Fxed Assets Fexed Assets
Permanent Financing Net Investment
Net Investment Net Investment
INCOME STATEMENT VS. HISTORICAL DATA
➢ A year of volume: ▪ + 1,225 MMAD in additional sales, ▪ +15% compared to historical figures: ➢ Increase in gross margin of 204 MMAD; ➢Decrease of operating expense ratio by 44
➢ Stable financial result despite an investment
Historic 2018 Achheived 2019 Evolution Change Sales of Goods 8 217 333 9 442 658 1 225 325
15%
Sales of Goods and Services 815 623 953 144 137 521
17%
Taux 9,9% 10,1% 0,17
Revenues 9 032 957 10 395 803 1 362 846 15% Direct Margin 970 637 1 037 118 66 482
7%
Rate 11,8% 11,0%
Gross Margin 1 786 260 1 990 262 204 002 11%
Rate 21,7% 21,1%
Operating Expanses 1 081 418 1 201 452 120 034 11%
Rate 13,2% 12,7%
EBITDA 704 842 788 811 83 968 12%
Rate 8,6% 8,4%
Amortization 278 154 323 078 44 924
16%
Rate 3,4% 3,4% 0,04
EBIT 426 689 465 733 39 044 9%
Rate 5,2% 4,9%
Financial Result
4%
Rate
0,03
Operating Income 402 062 440 059 37 996 9%
Rate 4,9% 4,7%
Other Income
68%
Rate
Income Before Taxes 397 912 433 090 35 178 9%
Rate 4,8% 4,6%
Taxes 109 511 115 083 5 573
5%
Rate 1,33% 1,22%
Net Income 288 401 318 006 29 605 10%
3,51% 3,37%
▪ Progression of 22% of sales for the hypercash segment thanks to the increase in sales at constant perimeter ▪ Progression by 12% of sales of supermarkets thanks to: ❑ The 2% increase in sales at constant perimeter ❑ The contribution of store openings in 2018 and 2019 by respectively, 170 MMAD and 151 MMAD ▪ Increase in sales of hypermarkets by 8%: ❑ The increase in sales at constant perimeter by 2% ❑ The contribution of store openings in 2018 and 2019 by respectively, 69 MMAD and 59 MMAD
SALES
Sales By Perimeter
Value % CONSTANT PERIMETER 8 024 465 8 783 102 758 637 9% Openings 2018 192 868 450 151 257 283 133% Openings 2019 209 406 209 406 NA TOTAL GROUP 8 217 333 9 442 658 1 225 325 15% EVOLUTION OF SALES Historic2018 Achieved 2019 Gap Historic
23% of Group sales
9 stores
36% of Group sales
11 stores
37% of Group sales
84 stores
104 stores
GROSS OPERATING PROFIT & OPERATING INCOME
Change in EBITDA and operating profit (MMAD) Evolution of margins (% of sales)
+9% +12%
➢ In terms of value, EBITDA reached 789 MMAD and recorded a progress of +12% compared to 2018: ▪ The increase in EBITDA covers all business segments, ▪ This increase was mainly due to the increase in operating margins of 204 MMAD. ➢ The increase in business volumes has also led to economies of scale and improved the Group’s operating expense ratio by 44 bp. compared to sales. The improvement in the expense ratio concerns both head offices and stores. ➢ The EBITDA ratio to sales fell -20 bp compared to which is mainly explained by a more aggressive commercial strategy to gain in volume and traffic.
Dividends Other financial income 45 71 46 65 2018 2019
Change in financial income and expenses (MMAD) Details of financial products (MMAD)
+9%
FINANCIAL RESULT
FINANCIAL PROCEEDS FINANCE CHARGES 142 117 136 111 2018 2019
+5% +5%
▪ The Financial Result went from -24.6 MMAD in 2018 to -25.6 MMAD in 2019, i.e. an improvement of 3
▪ The financial result remained stable in 2019 in a year of strong growth despite an investment of 640
▪ The significant improvement in debt costs and the optimization of financial investments; ▪ The monitoring of the net working capital.
Change in Operating income and Net income (MMAD)
RECURRING AND NET INCOME
Current income Net income 318 440 288 402 2018 2019
+10% +9%
▪ Operating income rose from 402 MMAD in 2018 to 440 MMAD in 2019, representing a 9% increase. ▪ Net income reached 318 MMAD, an increase of 10% compared to 2018.
Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020
The decrease in cash of -139 MDH in comparison to its 2018 level is mainly related to: ➢ Repayment of 280 MMAD of bonds; ➢ The improvement of Working Capital by +116 MMAD; ➢ Repurchase of assets initially securitized in December 2014.
Value Day of Sales Value Day of Sales
Value Day of Sales Working Capital 213 077 9
Equity 1 853 543 82 2 023 556 78 170 013
Net Income 288 401 318 006 Dividends ditribution
Capital Increase
4 162 2 007 Financing Debt 2 307 390 102 2 679 243 104 371 853 1 New Loans 324 488 801 000 Bonds
Reimbursements
Permanent Financing 4 160 932 185 4 702 798 182 541 866
Net Debt ratio 42,8% 48,8% Fixed Assets
Investments 519 418 1 096 529 Sale
Normative Operating Working Capital 732 927 33 848 995 33 116 068 Inventory
Receivable / Debt 2 211 253 98 2 464 946 95 Other current Assets
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TREASURY AND PLACEMENTS
525 106 23 386 077 15
FINANCIAL INDICATORS Historic 2018 Acheived 2019
Evolution
➢Business prospects ➢New corporate identity system ➢New Carrefour Market Concept
Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020
➢ In order to strengthen its position as a strategic multi-format player, the Group intends to pursue its development program with the opening of 9-11 new stores in 2020. ➢ The Group also agrees to maintain the upward trend of economic and financial indicators in 2020 in line with the objectives set, as well as to maintain its dividend distribution policy. ➢ At its meeting on February 28, the Board of Directors decided to propose to the Shareholders' Meeting the distribution of a dividend of 160 MMAD for fiscal year 2019 i.e 56,4 MAD per share.