Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q2 2018 Earnings Presentation
25 slides from Alsea, S.a.b. De C.v's earnings presentation, 2018
Slide 1: Investor update 2Q18
LAVACA @ Caiias yTapas Domino's: california PF CUANGS
Slide 2: Our presence
our presence 3,521 14 brands 76,711 units employees 457 79% 21% million corporate franchises clients served Mexico Spain Argentina Chile Colombia Brazil Uruguay 2,387 561 249 161 158 4 1 2Q18 | ALSEA 2
Slide 3: Alsea's history
ALSEA‘S history 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2018 units 1 500 1,000 1,862 2,714 3,195 3,521 Launch Business Model Expansion Consolidation 2Q18 | ALSEA 3
Slide 4: Alsea Mexico today
ALSEA MEXICO today 2% 1% 2% 2 % 4% 27% 5% Stores Corporate Franchises Total 442 276 718 56% 7% Sales Share Employees 687 687 7% 181 248 429 8% 18% 71 71 18 2 20 17% Vips 24 24 Domino‘s Starbucks 82 13 95 64 Italianni‘s % Burguer King 271 5 276 Chili‘s Ebitda Share El Portón 64 64 DIA P.F Chang‘s 3 3
Slide 5: Alsea International today
ALSEA INTERNATIONAL today 23% 2% 2% 3% 2 % Stores Corporate Franchises Total 35% 11% 289 47 336 44% 275 275 Sales Share Employees 230 230 15% 10 10 21% 97 129 226 30% 19% 9 8 17 Burguer King Domino‘s 4 4 36% Starbucks Foster‘s Hollywood 33 33 Archies 3 3 Ebitda Share P.F Chang‘s Alsea TOTAL 950 184
Slide 6: Alsea today
ALSEA today Stores Corporate Franchises Total 1%% % 2%2 1 1 % 21% 3% 4% 22% 731 323 1,054 4% 962 962 Sales per 4% Geography 411 248 659 5% Employees 271 5 276 97 129 226 23% 56% 16% 18% 74 74 82 13 95 Mexico 17% Spain Domino’s 64 64 South America Burguer King Vips 34 34 Starbucks Italianni‘s 33 33 F
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 1.5 million restaurants on board members WOW is in 6% of Alsea Domino‘s app Mexico Sales close to Close to 2.5 million 1,350,000 downloads regi
Slide 8: Strategy
stra tegy 2Q18 2Q18 | 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 457 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 Dec 17 LTM Per-Capita Expense | Food Service Industry (Figures in usd) 1,980 Served by the Informal Sector 1,580 750 500 515 32
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 2Q18 | 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 2Q18 | 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 2Q18 | 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 2Q18 | ALSEA 15
Slide 16: Financials
fi nan2Q18 cials 2Q18 | 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 8% 12% 11,194 10,344 1,571 1,406 2Q17 2Q18 FY16 FY17 2Q17 2Q18 FY16 FY17 Net Ordinary Income Net Debt/ EBITDA CAGR 17% (‘13 - ‘17) 11% 2.5 x 1,252 2.1x 1,126 314 233% 94 2Q17 2Q18 FY
Slide 18: Mexico business overview
BUSINESSOOverview Mexico verview Mexico 3% 2 % 5% 5% 3% 4% 2% 4 % 5% 30% 5% 27% 28% 6% 12 % 6 % * Adjusted * 9% Units 7% Sales EB I T DA 8% 10 % 18% 21% 21% 28% 17% 14% CAGR 11% 2,387 2,215 2,346 Results 2Q18 12mDec17 1,999 2,092 Other** 1,571 * Quarterly share SSS 2.8% 3.1% figures for sales and Ad
Slide 19: International business overview
BUSINESS Overview Inernational Overview International 1% 1 % 1% 2% 2 1 1 1% % % % 3% 30% 34% 29% 20% 17% 23 % Adjusted Units Sales * EB I T DA * 18% 23% 20% 24% 25% 24% CAGR 40% 1,134 1,092 980 Results 2Q18 12mDec17 785 836 SSS 12.6% 11.4% Other** Revenues $4,951 $18,853 287 * Quarterly share Adjust
Slide 20: Alsea business overview
BUSINESS Overview Alsea Overview Alsea 2% 1% 2% 1 2 2% 2 % % % 2% 2 % 2% 3% 4% 3 % 30% 3% 23% 6% 26% 6% 4% Ajusted 8% 7% 6% Units Sales * 8 % EB I T DA * 12 % 19% 19% 12 % 27% 20% 21% 14% CAGR 17% 3,521 3,195 3,438 2,784 2,954 Results 2Q18 12mDec17 1,862 Other** SSS 4.5% 6.6% * Quarterly share figur
Slide 21: Debt profile
DEBTPProfile rofile Capital structure 2Q18 2Q17 Debt Maturity 10% 17% 33% 5% 9% 2% 2% 10% - 12% Net Debt / EBITDA 2.1x 2.5x 5,269 EBITDA / Interest Paid 4.9x 5.0x Average cost 8.90% 2,829 Peso 8.74% 1,652 2,000 Euro 1.75% 1,481 1,649 728 Debt structure 2Q18 Main banks 278 371 Bond Debt 43% Bancomext
Slide 22: Leverage and CAPEX
LEVERAGEaand CAPEX nd CAPEX 0.96x 21.5x 2.93x 2.30x 2.38x 2.04x 2.06x COA 4,341 4,882 3,650 3,439 2,751 2,055 1,946 CAPEX Net Debt / EBITDA Figures in million pesos 2012 2013 2014 2015 2016 2017 2Q18 Note: Alsea has managed succesfully complete the acquisition of new brands in its portfolio, improvi
Slide 23: Guidance 2018
GUIDANCE22018 Total ope nin 018 gs 2 40 Revenues Low to Mid -2 Top Line Double Digit Growth 70 Growth SSS Mid to high Single Digit E B I T DA 190- 210 Low to Mid Corporate Double Digit Growth EBITDA 50- 60 Growth sub- franchises Slightly above 14% E B I T D A margin Capex* Net Debt / EB I T DA ˜4 -
Slide 24: Five year goals
five year goals goals 2018e 2022e Sales Low to Mid Double digit growth CAGR* > 15% EBITDA Low to Mid Double digit growth CAGR* = High teens EBITDA margin expansion Slightly above 14% >15% Dividends >$0.70 pesos per share Acum >$5.50 pesos per share Adjusted EPS* $1.70 CAGR* >25% ROIC 13% >20% ROE 12
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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