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GROWTH A STRONG COMMITMENT

GROWTH A STRONG COMMITMENT. Black Swan Conference 17 th November, 2010. INDEX. 0. GROUP STRUCTURE. 1. EVOLUTION. 2. PILLARS OF JM’s STRATEGY. 3. JM’s STRATEGIC PATHS. 4. OUTLOOK. Retail Portugal. % in the Group 09: 37.0% Sales 33.3% EBITDA 60.0% Inv. Cap. Pingo Doce

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GROWTH A STRONG COMMITMENT

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  1. GROWTH A STRONG COMMITMENT Black Swan Conference 17th November, 2010

  2. INDEX 0. GROUP STRUCTURE 1. EVOLUTION 2. PILLARS OF JM’s STRATEGY 3. JM’s STRATEGIC PATHS 4. OUTLOOK

  3. Retail Portugal % in the Group 09: 37.0% Sales 33.3% EBITDA 60.0% Inv. Cap. Pingo Doce (339 Supers) (9 Hypers) 0. GROUP STRUCTURE Jerónimo Martins, SGPS S.A. Market Cap. = Euro 7.0 bn* Sales 09FY= Euro 7,317 mn EBITDA 09FY = Euro 528 mn (7.2%) Inv. Capital 09 YE = Euro 1,758 mn Manufacturing Portugal Food Distribution Services Portugal 45% 51% 100% 100% 100% JMD(Agency and Marketing Services) Retail Poland Wholesale Portugal Unilever Jerónimo Martins (Fima/Lever/Olá) Galloworldwide % in the Group 09: 9.4% Sales 7.8% EBITDA 5.8% Inv. Cap. % in the Group 09: 50.9% Sales 51.4% EBITDA 25.1% Inv. Cap. JM Restauração(Specialized Retail) 100% Hussel(Specialized Retail – Sweets and Chocolates) 51% % in the Group 09: 3.2% Sales 6.9% EBITDA Recheio Cash & Carry (38 stores) Biedronka Discount (1,559 stores) % in the Group 09: 1.2% Sales 0.3% EBITDA * as at 10 November, 2010

  4. Leader in the supermarket segment in Portugal (c.19% market share in Total Retail Market) • 348 Stores; Average selling area c. 1,200 sqm • Assortment c. 6 thousand SKUs • Prime proximity locations • EDLP • Non food c.4% of sales • Key differentiating factors • The best operator of perishables in the Portuguese market (60% sales) • Private brands c.40% of total sales (excl. perishables)

  5. Wholesale Portugal % in the Group 09: 9.4% Sales 7.8% EBITDA 5.8% Inv. Cap. Recheio Cash & Carry (38 stores) 0. GROUP STRUCTURE Jerónimo Martins, SGPS S.A. Market Cap. = Euro 7.0 bn* Sales 09FY= Euro 7,317 mn EBITDA 09FY = Euro 528 mn (7.2%) Inv. Capital 09 YE = Euro 1,758 mn Manufacturing Portugal Food Distribution Services Portugal 45% 51% 100% 100% 100% JMD(Agency and Marketing Services) Retail Portugal Retail Poland Unilever Jerónimo Martins (Fima/Lever/Olá) Galloworldwide % in the Group 09: 37.0% Sales 33.3% EBITDA 60.0% Inv. Cap. % in the Group 09: 50.9% Sales 51.4% EBITDA 25.1% Inv. Cap. JM Restauração(Specialized Retail) 100% Hussel(Specialized Retail – Sweets and Chocolates) 51% % in the Group 09: 3.2% Sales 6.9% EBITDA Biedronka Discount (1,559 stores) Pingo Doce (339 Supers) (9 Hypers) % in the Group 09: 1.2% Sales 0.3% EBITDA * as at 10 November, 2010

  6. Leader in the C&C market – c.34% market share • 38 stores • Average selling area c. 3,300 sqm • Serving HoReCa (42% sales) and Traditional Retailers (40% sales) • Private brands c.16% of sales • Perishables 14% • Non Food 7%

  7. Retail Poland % in the Group 09: 50.9% Sales 51.4% EBITDA 25.1% Inv. Cap. Biedronka Discount (1,559 stores) 0. GROUP STRUCTURE Jerónimo Martins, SGPS S.A. Market Cap. = Euro 7.0 bn* Sales 09FY= Euro 7,317 mn EBITDA 09FY = Euro 528 mn (7.2%) Inv. Capital 09 YE = Euro 1,758 mn Manufacturing Portugal Food Distribution Services Portugal 45% 51% 100% 100% 100% JMD(Agency and Marketing Services) Retail Portugal Wholesale Portugal Unilever Jerónimo Martins (Fima/Lever/Olá) Galloworldwide % in the Group 09: 37.0% Sales 33.3% EBITDA 60.0% Inv. Cap. % in the Group 09: 9.4% Sales 7.8% EBITDA 5.8% Inv. Cap. JM Restauração(Specialized Retail) 100% Hussel(Specialized Retail – Sweets and Chocolates) 51% % in the Group 09: 3.2% Sales 6.9% EBITDA Recheio Cash & Carry (38 stores) Pingo Doce (339 Supers) (9 Hypers) % in the Group 09: 1.2% Sales 0.3% EBITDA * as at 10 November, 2010

  8. Leader in its segment in Poland – c. 10% of market share • 1,559 stores • Average selling area c. 550 sqm • Proximity locations • EDLP • Exclusive brands representing c.57% of sales • Non food c.6% of sales • Perishables c.15% sales

  9. 1. EVOLUTION In the last two years (‘08-’09) … Three years ago … The Group was focused on the established priorities: • The Group presented its decision to increase focus on cash flow protection with a list of priorities: • Poland – the growth engine - our priority regarding capital allocation • Optimization of all Company’s praxis – operating (costs & wc) and financing • Reinforcing Balance Sheet c.Euro700 mn Capex in Biedronka 421 new stores and 2 new DCs Sales CAGR c.34% (in PLN) Inventories from 21 to 17 days of sales Gearing currently below 50% Net Debt/EBITDA currently below 1x

  10. 1. EVOLUTION Today… • Group’s size reflects a different reality but also an increased capacity to execute and deliver: • Leadership in Poland and Portugal • Sales in excess of Euro8 bn • EBITDA in excess of Euro600 mn • 1,986 retail stores, 1.5 mn sqm of selling area (*) • More than 57 thousand employees • The Group is financially stronger: • Capex program fully financed through cash flow generation • Dividend policy (40%-50% of payout) maintained • Debt and gearing at healthy levels (*) as of November 2010

  11. 1. EVOLUTION Today… JM reinforces its Commitment to Growth Speeding up growth in Poland Analysing new geographies JM is well prepared to new increases in size

  12. 1. EVOLUTION Ready to Grow Sales (Euro mn) Group’s LFL Sales Growth Group’s Total Retail Stores 11.8% 11.7% CAGR +17.6% 7.4% 4.4% 3.7% EBITDA (Euro mn) Net Earnings (Euro mn) Net Debt (Euro mn) & Gearing CAGR +16.1% CAGR +14.4%

  13. 2. PILLARS OF JM’s STRATEGY JERÓNIMO MARTINS’ DNA Strong Corporate Culture Value Food Retailer Vocation for Growth Mass Market presence Targeting profitability A Team with… Requiring… Requiring… • Strong Balance Sheet • Price • Cost Efficiency • Strong Track Record • Know-how • Seniority • Clear and shared vision about Strategic Paths

  14. 2. PILLARS OF JM’s STRATEGY OUR APPROACH TO VALUE FOOD RETAIL Leadership Dynamics Strong Value Approach Value and Mass Market define our presence in the market: The success of our formats is leveraged on leadership… 1. Food Solutions Provider 1. Trust / Awareness / Reliability 2. Price / Costs Focus (LCO) 3. Proximity / Convenience Formats 2. Scale Matters - Sourcing, Costs, Presence And marked by strong differentiation: - Capacity to create market needs: our clients can expect more and pay less 4. Fresh Products 5. Strong Private Brand 6. Quality: Products, Packaging, Store Environment and Private Brand 3. Total Attention to consumer’s feedback and business details

  15. 3. JM’s STRATEGIC PATHS Strategic Paths - Our Priorities 1 Maximize the Polish Opportunity 3 Pursue New Growth 2 Consolidate the Portuguese Positioning Consolidate leadership through: Extract the maximum potential from Group’s leading positioning in Poland: Leverage on our strengths to: • Full coverage of the proximity market • Optimising cash flow generation and returns • Search for new growth opportunities • Define the appropriate entry point and entry strategy • Progressive acceleration of growth in Biedronka • Testing new opportunities

  16. 3. JM’s STRATEGIC PATHS 1 Maximize the Polish Opportunity Accelerating Biedronka Expansion Given Group’s current financial strength and our perception of the Polish retail market, we see as one key strategic target toaccelerate the expansionof Biedronka, not compromising the quality of the locations or the expected returns By the end of 2013 with more than 2,300 stores and with 14 Regions, Biedronka should already support the opening of 280-300 new stores (c.270 net additions) By progressively strengthening our regional expansion capacity with an increased number on Regions we will advance as fast as we can towards our medium term vision: 3,000 Biedronka stores in Poland

  17. 3. JM’s STRATEGIC PATHS 2 Consolidate the Portuguese Positioning JM’s Distribution Formats in Portugal - General Overview • Environment expected to get tougher following the 2011 Public Budget approved at the beginning of November • Capex limited to revamping program and openings in key proximity locations • Group formats expected to continue to show strong resilience, benefiting from business models’ awareness and leadership • Priority continues to be the strengthening of market share through LFL sales growth

  18. 3. JM’s STRATEGIC PATHS 3 Pursue New Growth Know-how and execution: drivers for new growth Avenues Corporate Approach Strong Commitment to identify new sources of growth Defining the Market Sizable + Economic and institutional framework + Basic suppliers infrastructures Defining the Format Food + Price Competitive + Mass Market + Local Approach

  19. 4. OUTLOOK Group Outlook 2011-2013 • In Poland, the market potential together with Biedronka’s strength reinforces our focus to expand the business as much as we can • We remain cautious about the Portuguese economy but confident that our business models will outperform their sectors • Double digit annual sales growth over the period • EBITDA expected to grow at least in line with sales • Group Capex for the 3Y period c.Euro1.7 bn, more than 3/4 to be invested in Poland

  20. 4. OUTLOOK Business Areas Outlook 2011-2013 Poland • C.700 stores will be added to the network in the 3Y period. Around 7% of the network to be remodelled every year • Improvements in the basket and maturity of store openings should support a healthy LFL, expected at high single digit during the period • EBITDA margin expected, at least stable over the period. Improvements in scale expected to support price leadership and a higher expansion pace Portugal • Around 5 new Pingo Doce stores to be opened per year • 4 Recheio stores to be opened in the 3Y period • LFLs are expected to clearly keep outperforming the market over the period supported by investment in key differentiation features • EBITDA margin should remain stable as consumption environment is expected to remain under pressure

  21. OUR MIND SET: FROM SUCCESS TO SIGNIFICANCE Black Swan Conference 17th November, 2010

  22. Disclaimer This presentation includes forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of factors. Jerónimo Martins assumes no obligation to update the information contained in this presentation or to notify a reader in the event that any matter stated herein changes or becomes inaccurate.

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