EUROCASH
The broadest food distribution and retail platform in Poland
Eurocash Group – executive summary
As wholesale distribution leader, Eurocash invests to improve small store competitiveness and growth
With 28% market share serving most small stores including 13.5k soft franchisees, sales are of EUR 4.2 bn and EBITDA of EUR 95 m
Eurocash.pl is a fast growing e-commerce platform with sales of EUR 800 m, giving small store owners solutions comparable to modern trade
As the 7th largest retailer, the roll-up growth strategy for its supermarket chain brings synergy and upside
With sales of Eur 1.7Bn from 1563 hard franchise and own stores, the objective is to add 900 stores in 5 years to become the 3 rd largest retailer
The retail strategy builds on already-strong product categories of wholesale while helping Eurocash grow into new, under-represented ones
Eurocash’s experience with post-acquisition integration of distressed assets offers the prospect of strong upside from profit recovery
Cash generation funds continued investment to innovate in support of small stores in a changing industry
Addressing the needs for automation, digitalization, and individualized customer offerings brings further competitiveness to small store formats
Following on investments of EUR 800 m over the last 10 years, today’s projects are at tipping point to show long-term benefits in growth and profitability
Through M&A and organic growth, Eurocash has built the broadest distribution and retail platform
With Sales of EUR 5.5 bn, and EBITDA of EUR 85 m, cash flow generation is of approximately 133% of EBITDA
While many retailers failed in Poland , Eurocash built scale through M&A and its purchasing power has kept small format stores competitive
Today, Eurocash is the 2nd largest player, No.1 in branded FMCG sales, the dominant small store operator, and leads in several product categories
Poland’s sizeable market has unique traits that favor neighborhood stores
GDP is of EUR 475 bn and population is of 38.4 m (EUR 26k per Capita PPP) but population density in large cities is quite low
Typically small living quarters lead to daily shopping nearby and has severely limited the success of “big box” retail forma ts
1
10%
30%18%
28% 21%7%
47%
26%9%
64%
17% 11% 4%
26%
44%
40% 61%55% 62%
82%
43%
65%83%
30%
78% 84% 94%
73%
46%31%
21% 17% 17% 12% 10% 9% 8% 6% 5% 5% 2% 1%
HM (+2500m²) SM (400-2500m²) SMALL FORMAT (under 400m²)
Poland is a unique marketDemographics: small towns, small living quarters, that necessitate daily shopping close to home
40%
13%11%
8%
28%Rural
Cities 0-20K
Cities 20-50K
Cities 50-100K
Cities 100K+
60% of Poles live in villages & small towns
Percentage of population living in cities/rural area
Small living quarters have limited space to store food
As a result, most Poles shop almost every day
Total population of 38.4 M
GDP per Capita PPP of EUR 26.1k
Share of distribution channels in European countries
GDP increase by 5.1% in 2018
2 Source: GUS, Eurostat, Nielsen RMS 2017
2,3%
12,2%
-0,6%
13,5%
2,2%
12,5%
-0,6%
11,2%
Small Supermarkets100-300
Convenience 40-100 Small Grocers -40 Specialized & Others
FY 2018 LTM MAY 2019
8,5%
-0,7%0,0%
6,5%
9,3%
-0,5% -0,4%
6,5%
Discounters Hypermarkets2500+
Supermarkets 300-2500
Small Format
FY 2018 LTM MAY 2019
Food market growthSmall format stores continue to grow
Source: Nielsen Retail Trade Panel, Value sales, period: January 2017 – May 2019, Food categories
Food market growth by channel (FY 2018 & LTM MAY 2019 YoY)
Food market growth in small format channels (FY 2018 & LTM MAY 2019 YoY)
LTM May Food sales increased by 5.7%, while in Small Format stores increase was of 6.5%
3
4,2%
0,7%
-3,5%
10,1%
2,6%
13,2%
5,9%
16,6%
Discounters Hypermarkets2500+
Supermarkets 300-2500
Small Format SmallSupermarkets 100-
300
Convenience 40-100
Small Grocers -40 Specialized &Others
2016 2017 2018
Food market dynamicsSales per one small format store is increasing the fastest despite declining number of all outlets
Change of sales per one store
Change of number of stores
158
-5
114
-3 087
-31 -244
-2 197
-615
Discounters Hypermarkets 2500+ Supermarkets 300-2500
Small Format Small Supermarkets100-300
Convenience 40-100 Small Grocers -40 Specialized & Others
4.0 91.50.3 3.3 8.9 33.227.0 22.3No. of
stores (k)
4 Source: Nielsen Retail Trade Panel, Value sales, period: 2016 – 2018, Food categories
6,8%5,4%
4,7%3,9%
2,7%2,0% 1,8% 1,7% 1,4% 1,3% 1,3%
-0,1%
-2,3%
0,5%
-0,8%
15,8%
5,8%
2,9%
0,0% 0,7%2,2%
3,0%1,3% 1,9%
-11,5%
3,7%
Fats Dairy Vegetables Bread andCereals
Food Tobacco Coffee &Tea
Meat Fish Beverages Alcoholincl. Spirits,Wine Beer
Fruits Sugar,sweets,
jams
2018 (I-XII) 2019 (I-V)
6,4%
4,5%
3,2%
2,0%
0,9%
2,8%
1,6%
-2,8%
6,8%
4,3%
5,9%
2,0%
1,2%
2,1%
-2,4%
abc Gama Lewiatan EKO(DC)
DelikatesyCentrum
Bierdronka Carrefour Tesco CEE
2018 4Q 2018
Biedronka
Large format categoriesSmall format categories
Like for Like vs inflationInflation by categories on relatively similar levels
Food
average
Like for Like sales dynamics by chain(YoY, 2018)
Food inflation by product category
Delikatesy Centrum inflation: wholesale prices -1.2%, retail prices +0.4% in 2018 YoY
Delikatesy Centrum retail LFL +4.0% in Jan-Apr YTD 2019 YoY
Small Stores
average +3.4%
Large Stores
average +0.5%
Source: Eurocash Group, Companies reports,
wiadomościhandlowe.pl, abc – data for appx. 300 stores
5 Source: GUS
Eurocash Group overviewEnormous purchasing power and efficient logistics to serve small and neighborhood stores across Poland
Eurocash
Group
Wholesale Retail Projects Others (HQ)
Delikatesy CentrumCash&Carry
Tobacco Specialized
Distribution
Alcohol Specialized
Distribution
Food Service (HoReCa)
Over 80k clients. 13.7k retail stores organized
within soft franchise chains: abc, Lewiatan,
Groszek, Eurosklep, Gama
Eurocash Distribution
Delikatesy Centrum: 1.55k stores -
566 own & 997 hard franchise
Inmedio: 450 newsagents
Sales’18:
EBITDA’18:
PLN 17.7 bn (+6%)
PLN 410 m (+18%)
PLN 4.9 bn* (+26%)
PLN 112 m (-13%)
PLN 74 m
PLN -45 m
N/A
PLN -102 m
Inmedio
Duży Ben
Kontigo
Others
Faktoria Win (W)
PayUp (W)
Already moved to Wholesale or Retail
(W or R) due to reach of break even point:
Fresh Project (R)
Sales’18: PLN 22.7 bn (+10% YoY)
EBITDA’18: PLN 374 m (+4% YoY)
recently sold for
14x EBITDA
6* Consolidated sales. Total annualized sales including franchise retail sales amounted to 7.4bn.
Retail already includes Fresh Project
1 2 23 4 5 6 7
9
15 15 1518
16 17 18
00
1 11
1
1 2 2
23
45
1 2 23
56 7
8
10
17 17 17
2019
21
23
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Wholesale Retail
Eurocash – 2nd largest overall player in Poland
16 acquisitions aimed at rolling up strong category leaders , capturing synergies around a common back-office
Hypermarkets have shown little growth for last 10 years
3
9
3
6
9
5
10
5
7
17
3
2
7
4
5
9
10
8
11
11
17
32
3
6
7
7
7
8
10
10
11
18
23
51
Selgros
Dino
Metro (Makro C&C)
Żabka
Intermarche
Carrefour
Tesco
Kaufland
Auchan
Lidl
Eurocash
Biedronka
2018
2013
2009
Eurocash Group sales evolution (PLN bn) Ranking of FMCG distributors & retailers (sales, PLN bn)
Source: RZ500
*IFRS 15
accounting change (appx. 2.4bn PLN)
MBO IPODelikatesy
Centrum
KDWT
PayUp McLane Batna Premium
Distributors
Tradis
GroupInmedio
Kolporter FMCG
Frisco.pl
Rogala
FHC-2
PDA
EKO Mila
M&A history:
MHC
PayUp
Disposal
Top players in Poland are not names one would expect to outrank famous international retail chains
7*IFRS 15 – change of accounting rules, impacting sales revenues and costs of goods sold by EUR 2.4
bn due to reclassification part of sales into lower purchase conditions. No impact on EBITDA.
Wholesale: No. 1 distributor in PolandBuilding scale and purchasing power to bring competitiveness to small stores
Wholesale market share
Eurocash Group28%
Makro - FMCG (C&C) 5%
Selgros (C&C)4%
PT Dystrybucja (T) 3%
Distribev (A)3%
PHUP Gniezno (T) 2%Alti (A) 1%
Others54%
• Local sub-wholesalers• Producers own distribution• Specialized & categories not
covered by Eurocash
Dedicated distribution platforms covering
different store profiles
25%
26%
13%
33%
3%
4,5
4,6
2,2
5,9
0,5
Sales (PLN bn)
Cash&Carry
Eurocash
Distribution
Alcohol
Distribution
Tobacco & Impulse
Distribution
HoReCa
Del
iver
y
Gen
eralistsSp
ecialized
T - Tobacco;
A - Alcohol,
8
2018:
Merging:
…but traditional wholesale and retail is a past..
8,0 8,7
2017 2018 LTObjective
80
# of Eurocash.pl users (thsd.)
1 173934
623
wwwSales Rep.Others
2018 avg. order by type (pln)
33
1614
wwwSales Rep.Others
2018 # of ordered SKU
+26%+88% +108%+141%
Digital approach to increase store owners competitiveness
To customize offer to local consumers
To flexibly compete with centrally managed retail chains
To reduce store costs, making work much easier and more
automated
To fully integrate supply chain from Eurocash to Consumer
Digital revolution of traditional wholesaleEurocash.pl allows local entrepreneurs to overbeat every centralized retail chain
9
51
18
11
10
10
8
7
7
7
6
3
3
3
2
2
Biedronka
Lidl
Auchan
Kaufland
Tesco
Carrefour
Delikatesy Centrum
Intermarche
Żabka
Dino
Netto*
E. Leclerc
Stokrotka
Polomarket*
Piotr i Paweł*
Retail: 1st nationwide proximity supermarket chain in PolandEntering retail through market consolidation, followed by operational integration, with LT objective to become no. 3 retailer in Poland
Ranking of retailers (2018 sales, PLN bn)
4,3
3,1
1 563 stores
997
Number
of Stores
Retail Sales
(PLN bn, 2018)
7.4 bn PLN
Own
Franchise
566
+5 bn PLN
> Retail Sales
+900 stores
> By 2023
Acquisitions
Green Field
Franchise Chain2-3Y integration to ensure
standardized business
with unified processes
LT
objective
EV/Sales
50% (JMT)
37% (TSCO)
22% (CA)
?
62% (PE**)
114% (DIN, IPO)
49% (PE**)
57%
Profi (Romania) 68% (PE**)
Average
consolidated 5.1
10
Source: RZ500
*no data for 2018, data used for 2017
**PE – Private Equity deal
20,1
18,9
2016 2018
1 0861 539
2016 2018
4,6
7,4
2016 2018
237
399
2016 2018
Eurocash Retail: consistently investing in the future
Expansion already started through consolidation of two chains, both having potential to increase sales density
Selling area (k sqm) Brand sales revenues (PLN bn)
No. of storesSales per sqm (k PLN)
+68% +61%
+42%
Strong asset
base increase
Asset integration &
operational standardization
Expansion & sales development through
new stores and additional acquisitions
Rebranded EKO stores are still at early stage but already started to show strong LFL* improvement
*LFL – Like-for-Like sales growth or same store growth
Acquisition of distressed regional chains boosts sales and store count but initially sales per sq. meter take a hit
11
Retail – biggest supermarket chain in PolandMerger of 3 businesses under professional process management
EKO stores remodeling
EKO logistics integration Head Office & Operational integrationTogether work as
market leader
December
2017
June
2019
September
2019
Further realization of
strategic goals and
process development
4Q 2019
Key milestones for integration process
Finished integration project
Strategyreview
1
ExpansionHQ, HR &
Internal communication
IT
Business Case, Synergies &
KPIs
CRM & Marketing
Risk Management
Finance & Accounting
Logistics / Supply chain
Legal
Assortment Review & CVP
Stores Operations
CentralCommercialProcesses
32
4
5
6 8
9
10
11
12
7 13
December
2018
Mila stores remodeling
12
FRISCO.PLWarsaw market leader, home delivery
with 42% market share
E-supermarket B2C
Fully automated warehouse launched
in June 2019
Projects serve to incubate forward-looking retail concepts and solutions
DUŻY BEN Specialized liquor store
Supported by Eurocash scale
High cash generation
Deconsolidated market
Already 50 stores, with store level avg.
BEP after 9 months. 22% LFL (1Q 2019)
Digitalization Automation Personalization Professionalization
Following Faktoria Win, PayUp & Fresh Projects success new, promising ones are in expansion phase
Cumulative EBITDA investment of EUR 40 m in last 4 years to address recent consumers’ behavior changes:
In a changing industry Eurocash is able to keep investing, in good times and bad, to innovate & support of small stores
13
Sweet&Alcohol store
independence (2018)
Sweet&Alcohol store sales
dynamics (YoY 2018)
57,0%43,0%
Non-Organized Chain
7,6%
5,4%
Sweet & Alcohol Total Market
20%
28%
36%
42%
2015 2016 2017 2018
Value Market Share
(Warsaw)
Doubled
market share
in last 3 years
Source: Nielsen Retail Trade Panel, Value sales, period: January 2017 – December 2018, Food categories;
Nielsen 2018 In-store audit
Chain/organized storeIndependent store Total Poland
-11,6 -11,7 -12,4
-5,8-11,1
-17,2-13,2
-19,4 -17,3
-25,6 -27,62008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0,2 0,4 0,7 0,9
1,6 2,1 2,4
3,4 3,7
4,2 4,7
0,2 0,3 0,7
1,8 1,9 2,0 2,3 2,4
2,7 3,0
3,4
158%
101% 93% 100%137% 135%
60%
206%
74%
137% 133%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Cum. OCF Cum. ICF OCF/EBITDA
Cumulative Operational Cash Flow (OCF) and Investment Cash Flow (ICF) PLN bn
Cash Conversion (in days)
Cash conversion one of best in market and compared with international comparables
Cash generative business model funds M&A and innovation for long-term
We kept investing even in tough macro environments: Total investment in last 10 years of EUR 800m
Eurocash Group: high cash generation is the key enabler of success
IFRS 15
accounting change (-2 days)*
*IFRS 15 impact on working capital rotation due to 2.4bn PLN sales reclassification
Now, as before, a capex-light business model and working capital discipline underpin M&A and investments
14
Changing consumer habits are opportunity for small stores in PolandProximity and small stores will get even more importance having access to Eurocash innovations
Q:In which store do you most often perform given types of shopping missions? .
55%58%
38%
23%
61%
44%
55%
12%
Hypermarkets Supermarkets Discounters Small Stores
Special Occasion Stocking Up
4% 7%
24%
51%
15%
36%
65%73%
Hypermarkets Supermarkets Discounters Small Stores
Unexpected need Daily routine shopping
Big Shopping Small Shopping
Thanks to digitalization, automation and e-commerce growth
SMALL STORES MAY TAKE OVER BIG SHOPPING FROM LARGE CHAINS
e- and m-commerce as standardGrowing disposable income
Food: eco, organic,
veg, regional, exoticGrowing consumption of F&V,
ready meals; less bread, meat, sugar
Growing share
of pensioners
Consumer change from passive to active 15
Eurocash Group – executive summary
NO. 1. WHOLESALE DISTRIBUTOR IN POLAND
with 28% market share & the biggest (PLN 3bn) FMCG ecommerce platform
DYNAMICALLY ENTERING INTO RETAIL
already no. 7 with objective to become no. 3 retail chain in Poland
WITH INNOVATION AND BUSINESS DEVELOPMENT PROJECTS DELIVERING RESULTS
addressing digitalization, personalization & automation needs
AS THE DOMINANT SMALL FORMAT & PROXIMITY STORE OPERATOR
supported by globally changing trends & consumer habits
16
APPENDIX
EUROCASH RESULTS
17
Executive Summary
FY 2018 WHOLESALE SALES INCREASE BY APPX. 1.0 bn , RETAIL BY APPX. PLN 0.9 bn
01
WHOLESALESTRONG GROWTH OF 6% IN 2018 AND
3.5% IN 1Q 2019
with EBITDA PLN +18% in 2018
and +15% in 1Q 2019
RETAILINTEGRATION ONGOING, BUT LFL
STARTED TO IMPROVE
with Delikatesy Centrum +4.0% in 4M 2019
02
04 IFRS16 IMPACT ON 1Q P&L AND BS:
1Q 2019 EBITDA PLN +88 m (330m
annually), EBIT +9 m, Net Profit -6 m
and Net Debt +1.8 bn
03
05STRONG CASH GENERATION
With OCF at 1.4x EBITDA in 2018
18
SMALL STORES WITH HIGH SALES INCREASEwith sales dynamics at +6.5% LTM May 2019 YoY
Eurocash financial summary In 2018 sales increase by 10%, reported EBITDA by 70% and normalized EBITDA by 4%
PLN m 2017 2018
% of
Sales
2017
% of
Sales
2018
Y/Y
Change
Net sales 20 713 22 833 10%
Gross profit 2 465 2 882 11,8% 12,6% 17%
EBITDA 246 419 1,2% 1,8% 70%
One offs: -114 45
PayUp 75
Restructuring provision -27
Mila M&A fees (2Q18) -3
EBITDA normalized 361 374 1,7% 1,6% 4%
EBIT reported 177 170 0,9% 0,7% -4%
Net profit reported -30 112 -0,1% 0,5%
19
PLN m 1Q 20181Q 2019
before
IFRS16
1Q 2019% of
Sales 1Q 2018
% of
Sales
1Q 2019 before
IFRS16
% of
Sales 1Q 2019
Y/Y
Change
Net sales 4 987 5 483 5 483 10%
Gross profit 582 712 712 11,7% 13,0% 13,0% 22%
EBITDA 40 34 121 0,8% 0,6% 2,2% -16%
EBIT -7 -19 -10 -0,1% -0,3% -0,2% -167%
Net profit -19 -34 -40 -0,4% -0,6% -0,7% -83%
Gross profitability increasing due to consolidation of Mila (retail)
Stable EBITDA driven, by wholesale cost improvement and off-set by retail integration. 1Q 2019 impacted by Easter.
1Q 2019 IFRS impact of: EBITDA PLN +87.9 m, EBIT PLN +9.4 m, net profit PLN -6.3 m
405
347
410
2,50%
2,07%2,32%
2016 2017 2018
Sales of goods evolution (PLN m)
16 217 16 72617 682
2016 2017 2018
3 970 4108
1Q’17
Wholesale Segment – continuing strong growthFY 2018: +956 m sales and +63 m EBITDA increase
Strong performance in FY 2018 with sales +5.7%, EBITDA +18.2% and EBIT +27.1% YoY
Cost pressure covered by improved efficiency
EBITDA evolution (PLN m)
20
+508 m
+3.1%
+956 m
+5.7%
-58 m
-14.4%
+63 m
+18.2%
3 715
+6.9%
1Q’19
35.5 46.1 52.8
1Q’18 1Q’191Q’181Q’17
+3.5%
+29.9% +14.5%
16 725 16 72516 887
17 192 17 192
17 630 17 673 17 682
162
35853
438
43 9
Wholesale2017
Cash&Carry Tobacco Alcohol Distribution Food Service Other Wholesale2018
1,3%
2,6%
0,7%
-4,9%
0,0%
-2,7%
-2,2%
-3,5%-4,0%
-1,3%
-3,6%
-5,2%
-4,6%
0,3% 0,3%
-0,4%
1,5%
2,7%
3,8%
6,9%
3,1%
Wholesale sales dynamics Wholesale segment supported by professionalization of small format stores
+957
+5.7%
Wholesale sales evolution by format (2018 YoY)
C&C LFL
Wholesale sustained the growth, with 5.7% in FY 2018 and 5.4% in Q4 2018
C&C LFL in FY 2018 showed best performance since 1Q 2013, with +4.1% and +6.9% in Q4 2018.
ECD sales to franchisees (Lewiatan, PSD, Euro Sklep, Groszek) increased by 10.1% in 2018 YoY
21
151 153
1076,32%
4,46%
2,48%
2016 2017 2018
2 397
3 436
4 319
2016 2017 2018
Retail – increased asset baseOngoing integration affecting short-term retail results
Sales increase driven by M&A. Consolidated 2018 Mila sales 835 m PLN
Delikatesy Centrum retail LFL in 2018 +0.9%. In 4M 2019: +4.0% YoY
EBITDA impacted by ongoing integration of 3 separate businesses
Sales of goods evolution (PLN m)
EBITDA evolution (PLN m)
22
+1 039 m
+43.4%
+883 m
+25.7%
+2 m
+1.2%-46 m
-30.2%
898 9691 327+7.9%+36.9%
1Q’191Q’181Q’17 1Q’191Q’181Q’17
25.519.0 13.3
-41
-52
51
39
20182017
Projects – investments in the future growthFresh Project at break even point in 3Q 2018. Already moved to Retail segment.
Sales of goods evolution (PLN m)
EBITDA evolution (PLN m)
23
1Q’191Q’18
1216
2017 1Q’18 2018 1Q’19
v
-11 -12
Faktoria Win, PayUp, Fresh Project – successfully developed, already moved to Wholesale or Retail
EBITDA impacted by costs of expansion and investments into brand awareness increase
Expansion needed to reach break even point
+12 m
+30.8%
+30.8%
+11 m
31 31 28 30 30 27 24 21 23
25 23 21 24 24 24 20 20 25
( 21) ( 21) ( 22) ( 27) ( 23) ( 25) ( 24) ( 28) ( 25)
( 76) ( 75) ( 71)( 81) ( 77) ( 76)
( 68) ( 70) ( 72)
-100
-80
-60
-40
-20
0
20
40
Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019
Receivables Stock Cash conversion Liabilities
Strong cash flow generation sustained. 1Q 2019 impacted by seasonal effects.
Net Working Capital at the long-term optimum level with small seasonal changes
Cash FlowIn 2018 LTM Operating CF at 133% EBITDA (normalized)
Cash conversion cyclePLN m 2017 2018 1Q 2018
1Q 2019before
IFRS16
1Q 2019
Net operating cash flow 471 499 (55) (222) (134)
Net profit (loss) before tax 20 156 (17) (30) (37)
Depreciation 183 204 47 53 131
Change in working capital 247 175 (88) (276) (276)
Other 21 (37) 3 31 48
Net investment cash
flow (336) (379) (40) (123) (123)
Net financial cash flow (95) (126) 390 313 225
Total cash flow 41 (6) 295 (33) (33)
24
431 441 419 361 363 360 363 419 412584 486 464 370 468 685 608 382 729
1,36
1,10 1,111,02
1,29
1,901,67
0,91
1,77
1Q'17 2Q 3Q 4Q 1Q'18 2Q 3Q 4Q 1Q'19 beforeIFRS16
LTM EBITDA (PLN m) NET DEBT (PLN m) NET DEBT / EBITDA
25
Q1 2019 Net Debt increase of PLN 347 m
Net debt vs. LTM EBITDANet Debt increase due to seasonality and M&A.
IFRS16 not impacting operations and financial capabilities
Net Debt vs. EBITDA
2 554
(incl. IFRS16)2
IFRS16 drives ND to PLN 2.55 bn
742
(incl. IFRS16)1
3.44x
(incl. IFRS16)3
3301
1 825
IFRS Index below 3.5x IFRS16 EBITDA
(1) IFRS16 EBITDA – estimation for 2019 based on the assumption that the number of contracts will be constant and no change of their conditions is to occur. The estimated IFRS16 EBITDA shall not constitute any definitive forecasts and as
such is not guaranteed by Eurocash to any extent .(2) NET DEBT - the sum of long and short term loans, borrowings and financial liabilities less cash and cash equivalents(3) IFRS16 INDEX – new measure of indebtedness including operating leasing. The estimation shall not constitute any definitive forecasts and as such is not guaranteed by Eurocash to any extent.
(1) IFRS16 EBITDA – estimation for 2019 based on the assumption that the number of contracts will be constant and no change of their conditions is to occur. The estimated IFRS16 EBITDA shall not constitute any definitive forecasts and as
such is not guaranteed by Eurocash to any extent .(2) NET DEBT - the sum of long and short term loans, borrowings and financial liabilities less cash and cash equivalents(3) IFRS16 INDEX – new measure of indebtedness including operating leasing. The estimation shall not constitute any definitive forecasts and as such is not guaranteed by Eurocash to any extent.
CAPEX-light business model will drive IFRS16 Index / EBITDA (1) to 2.9x, EBITDA (1) to PLN 748 m
and EBITDA (1) margin to 3.3%
IFRS 16Net Debt vs. EBITDA in 2018 (PLN m)
AFTER IFRS 16IFRS 16 IMPACTCURRENT
2 184 (3)1 802382 (2)NET DEBT /IFRS16 INDEX
748(1)330(1)419EBITDA
2.9(3)0.9NET DEBT (IFRS16 INDEX)/ EBITDA
3.3%1.8%EBITDA margin
22 83322 833SALES
26
+ 88
+1.6 p.p.
+ 1 825
+1.7
1Q 2019 vs
1Q 2018
E-learning: 12,4k students, 70 courses
Workshops: 6k students, 70 towns
Conference: 5k participants
Business Studies: 72 students
Certification
400 initiatives from 250 towns
submitted to the contest by store owners
100 grants for initiatives to support local
society
PLN 1.5 m in total
Each grant: PLN 10k, 50k and 100k
Key successful developments in 2018Educational and social projects driving competitiveness of small stores in their neighborhoods
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Disclaimer
This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to
uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital
employed, capital expenditure, cash flows, costs, savings, debt, demand, depreciation, disposals, dividends, earnings, efficiency, gearing,
growth, improvements, investments, margins, performance, prices, production, productivity, profits, reserves, returns, sales, share buy
backs, special and exceptional items, strategy, synergies, tax rates, trends, value, volumes, and the effects of Eurocash S.A. merger and
acquisition activities. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual
results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors
include, but are not limited to developments in government regulations, foreign exchange rates, oil and gas prices, political stability,
economic growth and the completion of ongoing transactions. Many of these factors are beyond the Company's ability to control or predict.
Given these and other uncertainties, you are cautioned not to place undue reliance on any of the forward looking statements contained
herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements
(which speak only as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated
events, except as maybe required under applicable securities laws. Statements and data contained in this presentation and the associated
slides and discussions, which relate to the performance of Eurocash S.A. in this and future years, represent plans, targets or projections.
For more information please contact:Cezary Giza
Investor Relations Director
mobile: +48 693 930 415
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