Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q3 2018 Earnings Presentation
25 slides from Alsea, S.a.b. De C.v's earnings presentation, October 2018
Slide 1: Alsea 3Q18 Update
LAVACA @ Caiias yTapas Domino's: california PF CUANGS
Slide 2: Our presence
our presence 3,588 14 brands 71,500 units employees >450 80% 20% million corporate franchises clients served Mexico Spain Argentina Chile Colombia Brazil Uruguay 2,410 571 261 169 170 4 3 3Q18 | ALSEA 2
Slide 3: Alsea's history
ALSEA‘S history 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2018 2019 units 1 500 1,000 1,862 2,714 3,195 3,588 Launch Business Model Expansion Consolidation 3Q18 | ALSEA 3
Slide 4: Alsea Mexico today
ALSEA MEXICO today 2% 1% 2% 2 % 4% 27% 5% Stores Corporate Franchises Total 446 278 724 57% 7% Sales Share Employees 707 707 7% 181 248 429 8% 18% 71 71 14 2 16 17% Vips 24 24 Domino‘s Starbucks 81 14 95 64 Italianni‘s % Burguer King 272 5 277 Chili‘s Ebitda Share El Portón 64 64 DIA P.F Chang‘s 3 3
Slide 5: Alsea International today
ALSEA INTERNATIONAL today 22% 2% 2% 3% 2 % Stores Corporate Franchises Total 35% 11% 303 48 351 43% 296 296 Sales Share Employees 236 236 21% 15% 10 10 98 129 227 30% 19% 10 8 18 Burguer King Domino‘s 4 4 36% Starbucks Foster‘s Hollywood 32 32 Archies 4 4 Ebitda Share P.F Chang‘s Alsea TOTAL 993 185
Slide 6: Alsea today
ALSEA today Stores Corporate Franchises Total 1%% % 2%2 1 1 % 21% 3% 4% 22% 749 326 1,075 4% 1,003 1,003 Sales per 4% Geography 417 248 665 5% Employees 272 5 277 98 129 227 22% 57% 16% 18% 75 75 81 14 95 Mexico 17% Spain Domino’s 64 64 South America Burguer King Vips 34 34 Starbucks Italianni‘s 32
Slide 7: Innovation, Consumer, Technology
INNOVATION, CONSUMER, TECHNOLOGY Objective: Know your customer Reach: 1st stage - Mexico 35% increase in average ticket My Starbucks More than Rewards 1,350 2 million restaurants on board members WOW is in 6% of Alsea Domino‘s app Mexico Sales more than Close to 2.5 million 3,500,000 downloads regis
Slide 8: Strategy
stra tegy 3Q18 2Q18 3Q18 | ALSEA 8
Slide 9: Strategic definitions
strategicdefinitions definitions Purpose Ignite people’s spirit We are a determined community committed to excellence and integrity, we maximize synergies to deliver a surprising Value offer to our Guests and to make sure that our Restaurants generate extraordinary results, contributing with happine
Slide 10: Markets: Diversified Portfolio
MARKETS Diversified Portfolio >450 Actual Market Population GDP USD 3,521 497 5,150 Popular Segments AB C+ C C-, D+ D, E units million billion million clients T served as of Sep 18 LTM Per-Capita Expense | Food Service Industry (Figures in usd) 1,980 Served by the Informal Sector 1,580 750 500 515 3
Slide 11: Growth strategy
GROWTHstrategy strategy Margin Expansions Margin Expansions Organic Growth Acquisitions Operating Business Mix Operating SSS New Brands Leverage Corporate Efficiencies Store Openings Franchises & Sub-franchises SSS Franchised Cost of Sales New Brands Existing Brands Units Sub-franchised Pricing Stra
Slide 12: Mexico strategy
MEXICOstrategy strategy Market Holding Capacity with significant upside Franchises Corporate Total units upside 32% 100-110 100-110 Openings Openings 2018ee 2018 30-35 - 50-55 5-7 1 1 2-5 - 2 12-15 3Q18 | ALSEA 12
Slide 13: International strategy
Internationalsstrategy trategy Franchises Market Holding Capacity with significant upside Corporate Total units upside 40% 55% 80% 45% Spain Argentina Colombia Chile 90-100 90-100 Openings Openings Argentina Chile Colombia Brazil Spain Uruguay 2018e 2018e 20-25 15-20 12-15 1 35-45 5 3Q18 | ALSEA 13
Slide 14: Delivery Distribution Centers in Mexico
4 delivery Distribution Centers Distribution Centers in in Mexico Mexico Hermosillo Monterrey 112 stores Sonora, Sinaloa and B.C. 269 Stores Nuevo Leon, Tamaulipas, Durango, Coahuila, Chihuahua, Zacatecas. Cancun 90 stores Quintana Roo, Yucatan, Campeche, Tabasco. COA 1,372 Stores 3Q18 | ALSEA 14
Slide 15: Alsea Operations Center
ALSEA OPERATIONSCenter Center Total Land ED OPER 74,500 m2 LIZ AT RA with 46,000 m2 built T IO N +50 docks CE N Warehouses COA Offices S IN NG M DI XI E CO N U AND SURRO 17, 228 Bakery Mass production Rack position Commissary 10,004 1,761 5,463 Warehouse Refrigerated Frozen 3Q18 | ALSEA 15
Slide 16: Financials
fi nan 3Q18 2Q18 cials 3Q18 | ALSEA 16
Slide 17: Consolidated results
CONSOLIDATED results results Sales CAGR 28% (‘13 - ‘17) EBITDA CAGR 33% (‘13 - ‘17) 13% 25% 42,529 6,466 37,702 5,155 6% 8% 10,475 11,086 1,415 1,523 3Q17 3Q18 FY16 FY17 3Q17 3Q18 FY16 FY17 Net Ordinary Income Net Debt/ EBITDA CAGR 17% (‘13 - ‘17) 11% 2.7 x 1,252 2.1x 36% 1,126 311 229 3Q17 3Q18 FY1
Slide 18: Mexico Business Overview
BUSINESSOOverview Mexico verview Mexico 3% 2 % 4% 4% 2 % 3% 5% 5% 4 % 30% 27% 5% 29% 6% 11 % 6 % * Adjusted * 8% Units 7% Sales EB I T DA 7% 14% 18% 22% 18% 29% 17% 14 % CAGR 11% 2,410 2,215 2,346 Results 3Q18 12mDec17 1,999 2,092 Other** 1,571 * Quarterly share SSS 2.8% 3.1% figures for sales and A
Slide 19: International Business Overview
BUSINESS Overview Inernational Overview International 1% 1% 1 % 2% 2 1 1 1% % % % 3% 30% 35% 20 % 29% 20% 17% Adjusted Units Sales * EB I T DA * 18% 26% 19 % 25 % 25% 24% CAGR 40% 1,178 1,092 980 Results 3Q18 12mDec17 785 836 SSS 5.0% 11.4% Other** Revenues $4,796 $18,853 287 * Quarterly share Adjus
Slide 20: Alsea Business Overview
BUSINESS Overview Alsea Overview Alsea 3% 1% 2% 1 2 2% 2 % % % 2% 2 % 2% 3% 4% 3 % 28% 3% 21% 5% 27% 6% 4% Ajusted 8% 8% 6% Units Sales * 9 % EB I T DA * 12 % 18% 18% 13 % 30% 19% 23% 13% CAGR 17% 3,588 3,195 3,438 2,784 2,954 Results 3Q18 12mDec17 1,862 Other** SSS 3.8% 6.6% * Quarterly share figur
Slide 21: Debt Profile
DEBTProfile Capital structure 3Q18 3Q17 Debt Maturity 6% 9% 15% 9% 27% 20% 1% 6% - 7% Net Debt / EBITDA 2.1x 2.7x EBITDA / Interest Paid 4.7x 4.6x 7,556 5,678 Average cost 9.15% 4,264 Peso 8.95% Euro 1.50% 2,416 2,570 2,000 1,545 1,649 Debt structure 3Q18 Main banks 371 Bond Debt 25% Bancomext 11% 2
Slide 22: Leverage and CAPEX
LEVERAGEand and CAPEX CAPEX 1.0x 2.2x 2.9x 2.3x 2.4x 2.0x 2.5x COA 4,341 4,882 4,739 3,650 3,439 2,751 2,055 CAPEX Net Debt / EBITDA Figures in million pesos 2012 2013 2014 2015 2016 2017 2018e Note: Alsea has managed succesfully complete the acquisition of new brands in its portfolio, improving its
Slide 23: Guidance 2019
GUIDANCE2019 2019 Total ope nin gs 2 80 Revenues Low 30´s Growth -3 Top Line 00 Growth SSS Mid Single Digit E B I T DA 220 - 230 Mid 20´s Growth Corporate EBITDA 60 - 70 Growth sub- franchises Slightly above >13% E B I T D A margin Capex* Net Debt / EB I T DA ˜4.5 - 5 Bn ˜3.6x *Excluding acquisition
Slide 24: Five year goals
five year goals goals 2019e 2023e Sales Low 30´s Growth CAGR* - 15% EBITDA Mid 20´s Growth CAGR* - 15% EBITDA margin expansion > 13% Close to 15% Dividends $0.40 pesos per share Acum. $4 pesos per share Adjusted EPS* MXN $1.40 CAGR* >25% ROIC 10% Mid teens ROE 11% Mid to high teens *5 - Year Compoun
Slide 25: Investor information
INVESTORinformation Headquarters Alsea, S.A.B. de C.V. Salvador Villaseñor Av. Revolución #1267 – 21st. Floor ri@alsea.com.mx Corporate Tower Phone: +52 (55) 7583-2000 Col. Los Alpes, Del. Alvaro Obregón Zip Code 01040, Mexico City Phone: +52 (55) 7583-2000 The slides of this presentation, contains
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