2021 Results announcement

Results Q4 2021

October 2020 - September 2021

The fiscal year-end results can be described as very positive, the main income statement figures having grown despite the fact that there were no COVID-19 impacts until March of the previous year:

• 5.6% Economic sales growth1
• The business performed well, leading to a 13.2% rise in Adjusted Operating Profit1 and a 12.8% increase in Operating Profit
• 10.7% Net Profit growth
• Financial highlights

€ million	1 Oct. 2020 - 30 Sept. 2021	1 Oct. 2019 - 30 Sept. 2020	% Variation
Revenues	10,816.8	10,407.7	+3.9%
Economic sales1	1,179.5	1,117.2	+5.6%
Adjusted operating profit1	297.5	262.9	+13.2%
Economic sales margin1	25.2%	23.5%	+170 bp
Operating profit	240.3	213.1	+12.8%
Net profit	174.0	157.2	+10.7%

Estimated impact of COVID-19 on business performance and results

New waves of the pandemic have been recorded throughout the financial year, reaching their peak in the second quarter. This is in contrast to the previous year when the pandemic started practically at the end of the second quarter.

As a result, the situation during the first six months of this financial year cannot be compared to the same period last year, since the pandemic did not affect business in the countries in which Logista operates during the first quarter and almost the entire second quarter. From the second half of the year however, when comparing business in the context of COVID-19 for both financial years, the overall economic situation this year has been more positive than in 2020.

The Spanish, Portuguese, French and Italian governments again imposed a number of measures to limit working hours, keep businesses closed and restrict mobility, in addition to reintroducing some local lockdowns, but the measures were less severe than those adopted during the previous financial year. In any event, Logista has carried on operating the majority of its businesses virtually as normal, as it did in 2020, as these were again considered essential business when restrictive measured were introduced.

Any negative impact that COVID-19 may have had on results this year has been offset by cost-cutting measures and by taking a number of strategic decisions which have ensured that positive trends in some sectors resulting from the pandemic have been converted into business growth.

The positive impacts resulting from the pandemic include the rise in the e-commerce distribution business (last mile), in pharmaceutical distribution and in providing services to manufacturers, and an improved performance in the volume of tobacco products distributed in France in certain months of the year due to restrictions on mobility, in particular cross-border mobility. Some of these were already evident during the previous financial year.

1 See appendix "Alternative Performance Measures"

Investor Relations contact: [e-mail], + 34 91 481 9826

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Business trend and income statement highlights

The Group's Revenues rose by 3.9% against the previous year thanks to growth in Iberia and Italy. Turnover increased in most of the core businesses, growth having been achieved in Tobacco distribution in Italy and Spain, Convenience product distribution in all countries, and in Pharma and all Transport activities.

Economic Sales1 climbed 5.6% up to €1,180 million due to improvements in all geographies and activities, except for tobacco distribution in France and Portugal. Double-digit Economic Sales1 growth was achieved in the Pharma, Parcel services (Nacex) and Convenience product distribution businesses in Spain and Italy.

Total operating costs1 rose by 3.2%, well below the increase in Economic Sales1.

Adjusted Operating Profit1 amounted to €297.5 million after rising by 13.2% on the previous year. The Adjusted Operating Profit Margin over Economic Sales1 was 25.2% as compared with 23.5% in 2020.

The positive impact on results of changes to the value of inventories caused by movements in taxes and tobacco prices during the year (around €+5 million) partly explains this increase in Adjusted Operating Profit1 compared with 2020, when the impact was negative in the amount of €2 million.

Losses caused by COVID-19 in the same period of the previous year are estimated at around €14 million, while the impact is considered to be immaterial this year.

At the year end, a number of changes were made to the Group's financial reporting that affected comparability, so the 2020 figures were restated. These changes are described below.

Supergroup, the Group subsidiary engaged in distributing convenience products to points of sale other than tobacconists in France (formerly the Other businesses sub-segment) is now classed as an "available-for-sale asset", following a poor performance in recent years and since this is not a strategic business in the Group's forward-looking plans. As a result of this reclassification, the 2020 income statement, balance sheet, cash flow statement and breakdowns by geographic segment and business sub-segment were restated.

As from the year end, standalone reporting of the Logista Pharma business will begin, creating a new sub-segment in Iberia that will be named "Pharmaceutical distribution", while Logista Publications will remain in Other businesses.

Also following the year end, the Corporate and other segment will disappear as such and its results will be included in the other segments, allocating the corporate costs among the remaining three segments and integrating the Polish activities into Iberia (in the Tobacco and related products sub-segment), in line with the hierarchical reporting structure.

In view of these reclassifications, the 2020 breakdowns by geographic segment and business subsegment were restated to align the segment information with the data reported in 2021.

Restructuring costs2 fell compared with the previous year to €9.3 million (€11.1 million in 2020).

In the current year, capital gains on asset sales were lower than the 2020 total (€2.1 million and €12.7 million, respectively), two assets having been sold in Spain.

Operating profit grew 12.8% to reach €240.3 million.

Net financial income was well above the previous year at €20.2 million (as compared with €12.2 million), due primarily to interest on the excess corporate income tax interim payments made in Spain in 2017 and 2018, based on a Constitutional Court judgement.

1 See appendix "Alternative Performance Measures"

Investor Relations contact: [e-mail], + 34 91 481 9826

2

The effective tax rate was 27%, which was cut to 25.8% in the income statement following a ruling on tax litigation in Italy that favoured Logista. In the previous year, the effective tax rate was 26.8%.

Net profit from continuing activities rose by 17% to €193.2 million, while a net loss of €-19.1 million was posted on discontinued operations, as compared with €-7.3 million in the previous year.

As a result, Net profit rose 10.7% to reach €174 million.

Investor Relations contact: [e-mail], + 34 91 481 9826

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Changes in Revenues trend (by segment and business)

	€ million	1 Oct. 2020 - 30 Sept. 2021	1 Oct. 2019 - 30 Sept. 2020	% Variation
	Iberia	3,325.3	3,183.8	4.4%
	Tobacco and related products	2,875.6	2,780.9	3.4%
	Transport	411.3	385.4	6.7%
	Pharmaceutical distribution	180.8	144.6	25.0%
	Other businesses	18.2	18.2	(0.1)%
	Adjustments	(160.6)	(145.3)	(10.5)%
	France	3,982.7	4,105.0	(3.0)%
	Tobacco and related products	3,982.7	4,105.0	(3.0)%
	Italy	3,556.1	3,167.8	12.3%
	Tobacco and related products	3,556.1	3,167.8	12.3%
	Adjustments	(47.2)	(48.8)	3.2%
	Total Revenues	10,816.8	10,407.7	3.9%

Economic sales1 (by segment and business)

€ million	1 Oct. 2020 - 30 Sept.	1 Oct. 2019 - 30 Sept.	% Variation
	2021	2020
Iberia	634.3	593.5	6.9%
Tobacco and related products	303.2	292.9	3.5%
Transport	290.5	271.7	6.9%
Pharmaceutical distribution	83.2	69.3	20.1%
Other businesses	17.4	17.2	0.8%
Adjustments	(60.0)	(57.6)	(4.2)%
France	225.3	225.0	0.2%
Tobacco and related products	225.3	225.0	0.2%
Italy	324.7	304.9	6.5%
Tobacco and related products	324.7	304.9	6.5%
Adjustments	4.8	6.2	23.1%
Total economic sales1	1,179.5	1,117.2	5.6%

1 See appendix "Alternative Performance Measures"

Investor Relations contact: [e-mail], + 34 91 481 9826

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Adjusted EBIT1 (by segment)

€ million	1 Oct. 2020 - 30 Sept. 2021	1 Oct. 2019 - 30 Sept. 2020	% Variation
Iberia	133.5	111.9	19.3%
France	65.6	64.7	1.4%
Italy	98.5	86.3	14.0%
Total adjusted EBIT1	297.5	262.9	13.2%

Adjusted Operating Profit1 (or, interchangeably, Adjusted EBIT1) is the main indicator employed by Group management to analyse and measure business performance. This indicator is essentially calculated by discounting from EBIT costs that are not directly related to the Group's Revenues in each period, which facilitates the analysis of the trends in operating costs1 and the Group's margins. Set out below is the reconciliation of Adjusted EBIT1 and EBIT for FY 2021 and FY 2020:

€ million	1 Oct. 2020 - 30 Sept. 2021	1 Oct. 2019 - 30 Sept. 2020
Adjusted operating profit1	297.5	262.9
(-) Restructuring costs1	(9.3)	(11.1)
(-) Depreciation of Logista France assets	(52.2)	(52.2)
(+/-) Profit/(loss) on disposal and impairment	2.1	12.7
(+/-)Equity-accounted profit/(loss) and other	2.2	0.8
Operating profit	240.3	213.1

1 See appendix "Alternative Performance Measures"

Investor Relations contact: [e-mail], + 34 91 481 9826

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