Compañía de Distribución Integral Logista S A : Presentación de resultados

2020 Results

28 October 2020

Disclaimer

This document has been prepared by Compañía de Distribución Integral Logista Holdings, S. A. ("Logista Holdings" or "the Company") for information purposes, and does not constitute an offer of purchase, sale or

exchange, neither an invitation for an offer of purchase, sale or exchange of shares of the Company, or any advice or recommendation with respect to such shares.

This document contains certain statements that constitute or may constitute forward looking statements about the Company, including financial projections and estimates and their underlying assumptions, which are not guarantee of future performance or results, and are subject to risks, uncertainties and other important factors beyond the control of Logista Holdings that could cause final performance or results materially different from those expressed in these statements. These risks and uncertainties include those discussed or identified in the documents filed by Logista Holdings with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator.

Analysts and investors are cautioned not to place any reliance on such forward looking statements, which reflect knowledge and information available as of the date of this document. The Company does not undertake to update or revise publicly these forward looking statements in case unforeseen changes or events occur which could affect these statements, even if these changes or events make clear that the statements shall not be realized.

Finally, it should be noted that this document may contain information which has not been audited and may contain summarized information. This information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Logista Holdings.

2

Index:

• Results Highlights
• Business Review
• Financial Review
• Final Remarks & Outlook

2020 at a glance

Robust results, challenging environment due to COVID-19

Ensuring

distribution

			o Revenues +4.0%
			o Economic Sales +0.7%
Cost	MANAGING	New needs,	o EBIT +1.0%
COVID-19
management	o Adj. EBIT -1.9%
IMPACTS	new services
			o Net Profit -4.5%

Protecting our people

4

Managing COVID-19 impacts: Ensuring distribution

A different playing field

Most	Lockdowns
activities	and human	E-commerce	Business
declared	mobility	boom	Intelligence
essential	restrictions

Omni-channel		Opportunity to	Service of
ordering,
Proximity retail	provide a high-	growing
flexibility in
gaining SoM	quality	importance for
operations, key
	distribution	our clients
to operate

5

Managing COVID-19 impacts: New needs, new services

Supporting our clients

Tobacco

Convenience

Pharma

Nacex

• Building up security stocks close to points of sale
• Widening product portfolios accessible to end-consumers during lockdowns
• Direct-to-patientclinical trials
• Home delivery - chronic disease treatments
• Contactless delivery
• Lockers and dropping points Nacex.shop

Books

• Home delivery of the on-demand printing purchases

6

Managing COVID-19 impacts: Protecting our people

Increased focus on health & safety

• Ensuring health and wellbeing, preventing

Employees,		contagion
collaborators, their
families, our	•	Smart working policy implemented
communities	•	Maintaining activity during pandemic

7

Managing COVID-19 impacts: Cost management

Facing a new reality

Health and safety: new

protocols, extra expenses

Optimization program to offset

the current environment

Restructuring of severely

damaged activities

Network/transport routes

reorganization

Digitalisation, from a solid base

8

Delivering on our goal

Four building blocks

High quality added-value

service

Expanding business base

Our goal:

Sustainable long term

value creation

Efficiency improvement

Robust cash flow profile

9

Business Review

Business Review

Robust results, challenging environment due to COVID-19

262(7)

(14)16257

Adj.EBIT	Inventories'	COVID-19	Regular	Adj. EBIT
FY 2019	valuation	impact	operations	FY 2020
	differential

All data in M€, unless otherwise stated

11

Business Review

Iberia

					Estimated
+0.6%					COVID-19 impact:
					-11M€
3,176	+0.7%
				(0.4)%
	585	120
Revenues			Ec. Sales		Adj. EBIT
	ECONOMIC SALES
Tobacco &			Transport:		Other
related:				businesses:
		+0.6%
+2.9%				+0.1%

Total operating costs:

(0.9)%

All data in M€, unless otherwise stated

o Tobacco distribution:

• Volumes* down 3.8%, affected by cross-border/ inbound tourism sales drop
• No relevant impact of inventories' valuation

1. Convenience distribution:
2. • Wider portfolio, points-of-sale open during lockdowns, average ticket sale up
   • New clients in petrol station channel

1. Transport:
2. • Long distance and Parcel impacted by general economy
   • Courier growing in selective e-commerce

1. Pharma:
2. • Acceleration capture of new clients
   • Launch of new services during pandemic
   • • Cigarettes + RYO & Others (1gr./1 HTU = 1 cigarette)

12

Business Review

France

Estimated

+4.6%COVID-19 impact: -3M€

4,256

(5.0)%

(16.7)%

264

62

Revenues Ec. Sales

Adj. EBIT

ECONOMIC SALES

Tobacco &		Other
related:		businesses:
(1.3)%		(21.5)%

Total operating costs:

+0.6%

o Tobacco distribution:

• Volumes* down 3.1% due to retail selling price increases
• Inventories' valuation impact: negative in FY2020

1. Convenience distribution to tobacconists:
2. • Closure of HORECA activity at "café tabac"
   • Very positive performance of e-transactionso Convenience distribution to other channels
   • Closure of points-of-sale during lockdown

All data in M€, unless otherwise stated

* Cigarettes + RYO & Others (1gr./1 HTU = 1 cigarette)

13

Business Review

Italy

Estimated

+6.9%COVID-19 impact: no significant

3,167

+6.3%

o Tobacco distribution:

−	Volumes* , similar to FY2019
−	Value added services

304

+11.9%

91

− Inventories' valuation impact: slightly below

FY2019

Revenues

Ec. Sales

Adj. EBIT

ECONOMIC SALES

Tobacco & related: +6.3%

Total operating costs:

(4.1)%

o Solid growth in Next Generation Products and related value-added services

1. Convenience distribution:
2. • RYO paper, exclusive-compulsory sale through tobacconist channel
   • Other convenience (FMCG) sales growing, new purchasing habits: proximity sales trend

All data in M€, unless otherwise stated

* Cigarettes + RYO & Others (1gr./1 HTU = 1 cigarette)

14

Financial Review

Positive activity performance

REVENUES

+4.0%

10,148	10,559	o Main activities grew Revenues except Long distance, Parcel
		transport and Publications, in Spain, Convenience in France
FY 2019	FY 2020

EC. SALES

+0.7%

o Positive performance in Spain and Italy offset France decline

1,149	1,157	o Tobacco tariffs updated by track & trace services in all
		regions at year end, uneven timing of activation
FY 2019 FY 2020
All data in M€, unless otherwise stated

16

Significant cost management, resilient operating results

ADJ. EBIT

(1.9)%

262 257

FY 2019 FY 2020

o Total operating costs up by 1.4%

o New/increased costs due to COVID-19, some others reduced

o Efficiency measures, savings' program

262(7)

(14)	16	257

EBIT

1.0%

204 206

FY 2019 FY 2020

1. Similar restructuring cost: 12M€

o Higher capital gains (8M€ vs. 3M€)

o Provision reversal 5M€ vs. positive impairment result 2M€

Adj.EBIT	Inventories'	COVID-19	Regular	Adj. EBIT
FY 2019	valuation	impact	operations	FY 2020
	differential

All data in M€, unless otherwise stated

17

Limited impact in Net profit

(4.5)%

2	(1)	(8)
165

157

Net profit	EBIT	Financial	Taxes	Net profit
FY 2019		results		FY 2020

o Financial income up: same interest rate on higher average cash position

o Financial expenses up: first year accounting IFRS 16

1. Consolidated tax rate up: end of previous years' deductions

All data in M€, unless otherwise stated

18

Annual evolution of cash position

5.000
4.000
3.000
2.000
1.000
0
OC 19	NV 19	DC 19	EN 20	FB 20	MZ 20	AB 20	MY 20	JN 20	JL 20	AG 20	SP 20

1. Seasonality driving cash position to its peak towards year end

o Better than expected, temporary change in tax payment cycle in France and Italy (COVID-19)

o Treasury agreement with majority shareholder: temporary uplift of limit

o Dividend payments during FY2020: 156M€

MINIMUM AVERAGE MAXIMUM

M€	Mínimum	Average	Maximum
Cash	537	2,285	4,784

19

Investing in differentiation and high-quality services

M€	2020	2019	%
IT investments (technology)	18	25	(30,6)%
Infrastructure	9	18	(48.6)%
Maintenance	6	8	(15.8)%
Total investments	33	50	(34.6)%

o > 50% dedicated to technology

1. Investment calendar maintained despite COVID-19o Track & Trace investments already completed

20

Cash generation

M€	2020	2019	Change
EBITDA	340	310	+30
Restructuring & Other Payments	(16)	(12)	(4)
Rental payments	(34)	0	(34)
Financial Results	15	14	+1
Normalised Taxes	(72)	(68)	(4)
Capex	(27)	(49)	+22
Normalised Free Cash Flow	207	195	+12
WC Variation	611	39	572
Cut off effect on Taxes	(51)	62	(113)
Free Cash Flow	767	296	+471

1. EBITDA growth, IFRS 16 impact (comparable down 0.9%)

1. Lower capex and higher interest received off-set increased restructuring and normalised taxes o Temporary WC effect

21

Dividend Policy

Flexibility to reflect activity performance

o Despite a challenging FY2020, the Board intends to propose distributing the same total dividends as in FY2019

1. Dividend proposal FY2020 of 156M€

o Total dividend proposal will represent 99.7% pay out over FY2020 Net Income

22

Dividend Policy

Pay out consistently above 90% of Net Profit

Total dividends paid since IPO: c. 820M€

149M€

139M€

119M€

98M€

156M€ 156M€

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

PAY OUT RATIO

>90%

>90%

>90%

>95%

>95%

>99%

23

Share Price performance

120

110

100

90

80

70

60

LOGISTA		IBEX			IBEX MEDIUM CAP		IBEX TOP DIVIDEND
LOGISTA			IBEX	IBEX MEDIUM CAP		IBEX TOP DIVIDEND
-18.3%			-27.3%	-17.0%	-31.8%

o Logista's performance in line with mid-cap companies in Spain, outperforming IBEX Top dividend and IBEX35

1. Significant impact from COVID-19

24

Financial Review: Conclusions

Shareholders'

remuneration via

dividend

Robust Economic Cash Flow profile

Highly resilient business model

25

Closing remarks and outlook

2020 improvements in ESG agenda

A-List CDP	42% women	FTSE4Good
on Board of
4th year	constituent
directors

Manifesto for a	Supporting	Smart working
local initiatives,
sustainable	policy
post-COVID
reconstruction	implementation
recovery

27

2020 a positive year in a challenging environment

Ensuring

distribution

			o Revenues +4.0%
			o Economic Sales +0.7%
Cost	MANAGING		o EBIT +1.0%
New needs,
COVID-19	o Adj. EBIT -1.9%
management
IMPACTS	new services
			o Net Profit -4.5%

Protecting our people

o Solid set of results under extremely adverse circumstances

1. Successful business model: customer centric, flexible, asset-light

28

Outlook 2021

Adj. EBIT expected to grow mid-single digit

1. Solid performance since COVID-19 crisis started suggests a mid-single digit Adjusted EBIT growth rate in FY2021

o However, the uncertainties regarding the impact on the economy of our main markets and measures to face it may negatively impact the activity

o The outlook will be reviewed quarterly

o The dividend will be a priority in any scenario

29

Appendix

Tobacco Volumes Evolution

Relatively good volume performance across geographies

			Million units			% Y-o-Y Change
		1 Oct. 2019 - 30	1 Oct. 2018 - 30	1 Oct. 2017 - 30		1 Oct. 2019 - 30	1 Oct. 2018 - 30
		Sept. 2020	Sept. 2019	Sept. 2018		Sept. 2020	Sept. 2019
TOTAL
Cigarettes		143,469	151,106	155,821		(5.1)%	(3.0)%
RYO/MYO		27,309	23,218	21,106		+17.6%	+10.0%
Cigars	3,855	4,017	4,028	(4.0)%	(0.3)%
SPAIN
Cigarettes		41,675	44,484	44,247		-6.3%	+0.5%
RYO/MYO		7,779	7,068	6,443		+10.1%	+9.7%
Cigars	1,765	1,876	1,929	(5.9)%	(2.7)%
PORTUGAL
Cigarettes		2,479	2,473	2,351		+0.2%	+5.2%
RYO/MYO		119	105	104		+13.4%	+1.0%
Cigars
FRANCE
Cigarettes		36,719	38,926	41,637		(5.7)%	(6.5)%
RYO/MYO		8,755	8,000	8,468		9.4%	(5.5)%
Cigars	1,196	1,236	1,246	(3.3)%	(0.8)%
ITALY
Cigarettes		62,595	65,222	67,587		(4.0)%	(3.5)%
RYO/MYO		10,655	8,045	6,091		+32.4%	+32.1%
Cigars		894	905	854		(1.2)%	+6.0%

31

Revenues Evolution

By segment and activity

M€	2020	2019	%
Iberia	3,176	3,157	+0.6%
Tobacco & Related	2,774	2,754	+0.7%
Transport Services	385	386	(0.1)%
Other Businesses	163	152	+7.0%
Adjustments	(147)	(134)	(9.2)%
France	4,256	4,069	+4.9%
Tobacco & Related	4,111	3,892	+5.6%
Other Businesses	154	187	(17.9)%
Adjustments	(9)	(9)	+2.4%
Italy	3,167	2,962	+6.9%
Tobacco & Related	3,167	2,962	+6.9%
Corporate & Others	(39)	(40)	+1.9%
Total Revenues	10,559	10,148	+4.0%

32

Economic Sales Evolution

By segment and activity

M€	2020	2019	%
Iberia	585	582	+0.7%
Tobacco & Related	286	278	+2.9%
Transport Services	272	270	+0.6%
Other Businesses	87	86	+0.1%
Adjustments	(59)	(53)	(11.1)%
France	264	278	(5.0)%
Tobacco & Related	230	233	(1.3)%
Other Businesses	41	52	(21.5)%
Adjustments	(7)	(7)	+6.8%
Italy	304	286	+6.3%
Tobacco & Related	304	286	+6.3%
Corporate & Others	3	4	(9.5)%
Total Economic Sales	1,157	1,149	+0.7%

33

Adjusted EBIT Evolution

By segment

M€	2020	2019	%
Iberia	120	120	-0.4%
France	62	74	(16.7)%
Italy	91	81	+11.9%
Corporate & Others	(15)	(14)	(13.1)%
Total Adjusted EBIT	257	262	(1.9)%

34

Income Statement

M€	2020	2019	%
Revenues	10,559	10,148	4.0%
Economic Sales	1,157	1,149	0.7%
(-) Operating Costs of Logistic Networks	(750)	(736)	(1.9)%
(-) Sales and Marketing Operating Expenses	(66)	(69)	5.3%
(-) Research and G&A Operating Expenses	(85)	(82)	(3.0)%
Total Operating Costs	(900)	(887)	(1.4)%
Adjusted EBIT	257	262	(1.9)%
Margin %	22.2%	22.8%	(60) p.b.
(-) Restructuring Cost	(12)	(11)	(2.0)%
(-) Amort. of Assets Logista France	(52)	(52)	0.0%
(-) Net Loss on Disposal and Impairments	13	4.8	162.4%
(-) Equity Method and Others	1	1.2	(29.6)%
Operating Profit	206	204.3	1.0%
(+) Financial Income	17	15.0	15.2%
(-) Financial Expenses	(5)	(2.2)	(125.4)%
Profit Before Taxes	219	217.1	0.7%
(-) Corporation Tax	(61)	(52.3)	(16.7)%
Effective Tax Rate	27.9%	24.1%	(380) p.b.
(+/-) Other Income / (Expenses)	0	0.0	n.r.
(-) Minority Interests	(0)	(0.1)	(199.3)%
Net Profit	157	164.6	(4.5)%

35

Balance Sheet

M€	2020	2019
PP&E and other Fixed Assets	373	229
Net Long Term Financial Assets	19	18
Net Goodwill	921	921
Other Intangible Assets	408	457
Deferred Tax Assets	19	19
Net Inventory	1,294	1,283
Net Receivables	1,986	1,946
Cash & Cash Equivalents	2,827	2,211
Total Assets	7,847	7,084
Group Equity	514	519
Minority interests	2	2
Non Current Liabilities	168	44
Deferred Tax Liabilities	254	265
Short Term Financial Debt	77	38
Short Term Provisions	13	12
Trade and Other Payables	6,819	6,205
Total Liabilities	7,847	7,084

36

Alternative Performance Measures (1/6)

o Economic Sales: equals Gross Profit and is used without distinction by the Management to refer to the figure resulting of subtracting Procurements to the Revenue figure

Management believes that gross profit is a meaningful measure of the fee revenue we generate from performing our distribution services and provides a useful comparative measure to investors to assess our financial performance on an on-going basis

M€	2020	2019
Revenue	10,559	10,148
Procurements	(9,402)	(8,999)
Gross Profit	1,157	1,149

37

Alternative Performance Measures (2/6)

o Adjusted Operating Profit (Adjusted EBIT): This item is calculated, fundamentally, discounting from the Operating Profit those costs that are not directly related to the revenue obtained by the Group in each period, facilitating the performance of Group's the operating costs and margins

The Adjusted Operating Profit (Adjusted EBIT) is the main indicator used by the Group's Management to analyse and measure the progress of the business

M€	2019	2019
Adjusted Operating Profit	257	262
(-) Restructuring Costs	(12)	(11)
(-) Amortization of Assets Logista	(52)	(52)
France
(+/-) Net Loss of Disposals and	12	5
Impairment of Non-Current Assets
(+/-) Share of Results of Companies	1	1
and Other
Profit from Operations	206	204

38

Alternative Performance Measures (3/6)

o Adjusted Operating Profit margin over Economic Sales: calculated as Adjusted Operating Profit divided by Economic Sales (or indistinctly, Gross Profit)

This ratio is the main indicator used by the Group's Managements to analyse and measure the performance of the profitability obtained by the Group's typical activity in a period

M€	2020	2019	%
Economic Sales	1,157	1,149	0.7%
Adjusted Operating Profit	257	262	(1.9)%
Margin over Economic Sales	22.2%	22.8%	(60) b.p.

39

Alternative Performance Measures (4/6)

o Operating costs: this term is composed of logistics networks costs, commercial expenses, research expenses and head offices expenses that are directly related to the revenue obtained by the Group in each period

It is the main figure used by the Group's Management to analyse and measure the performance of the costs structure. It does not include restructuring costs and amortization of assets derived from the Logista France acquisition, as they are not directly related to the revenues obtained by the Group in each period

Reconciliation with Annual Accounts:

M€	2020	2019
Logistics network costs	807	799
Commercial expenses	66	70
Research expenses	3	3
Head office expenses	88	79
(-) Restructuring costs	(12)	(11)
(-) Amortization of Assets Logista France	(52)	(52)
Operating Costs or Expenses in	890	887
management accounts

40

Alternative Performance Measures (5/6)

o Non-recurringexpenses: refers to those expenses that, although they might occur in more than one period, do not have a continuity in time (as opposed to operating expenses) and only affect the accounts in a specific moment

This magnitude helps the Group's Management to analyse and measure the performance of the Group's activity in each period

o Recurring operating expenses: this term refers to those expenses occurring continuously and sustaining the Group's activity. They are estimated from the total operating costs less the non-recurring costs defined in the previous point

This magnitude helps the Group's Management to analyse and measure the performance of efficiency in the activities carried out by the Group

41

Alternative Performance Measures (6/6)

o Restructuring costs: are the costs incurred by the Group to increase the operating, administrative or commercial efficiency in our company, including the costs related to the reorganization, dismissals and closures or transfers of warehouses or other facilities

o Non-recurringresults: refers to the results of the year that do not have a continuity during the year and affect the accounts in a specific moment. It is included in the Operating Profit

42

2020 Results

28 October 2020