Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q1 2021 Earnings Presentation
29 slides from Alsea, S.a.b. De C.v's earnings presentation, 2021
Slide 1: Update 1Q21
update 1Q21
Slide 2: Our Presence
Our PRESENCE 11 17 4,185 countries brands restaurants Netherlands 88 Belgium 31 Luxembourg 4 France 185 México 2,171 Portugal 23 Spain 1,044 22% Colombia 181 +60,000 +234 FRANCHISES Uruguay 9 employees million clients CORPORATE Chile 202 served Argentina 247 78% 1,243 1,522 403 76 32 6 77 271 16 2 2
Slide 3: Alsea's History
Alsea´s History 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2018 2019 2021 UNITS 01 500 1,000 1,862 2,714 3,195 4,185 Launch Business Model Expansion Consolidation 1Q21 3
Slide 4: Alsea Today
ALSEA Today TOTAL Corporate 1,270 815 403 261 102 85 60 76 16 32 89 16 27 13 6 2 1 3,274 Franchises 252 428 - 10 128 35 17 - - - 17 23 - - - - 1 911 Total 1,522 1,243 403 271 230 120 77 76 16 32 106 39 27 13 6 2 2 4,185 Sales per geography 89% EBITDA per geography 17% pre IFRS 16 49% 34% 16% Mexico
Slide 5: Innovation: Consumer & Technology
INNOVATION Consumer & Technology MULTI-BRAND REWARDS PROGRAM • Alsea's Digital Transformation +690,000 • Omnichannel experience 19% Active members INCREASE in average ticket mobile web call center WOW is in 5% Delivery linked to WOW rewards app of ALSEA Mexico Sales 1Q21 5
Slide 6: Innovation: Consumer & Technology
INNOVATION Consumer & Technology APPS DIGITAL COUPON • 3x more efficient than paper coupons • 45.34% redemption +2.5 MILLION • Smart targeting according to customers´ needs and preferences DOMINO’S APP +2.0 DOWNLOADS • Evolution to an ecosystem of benefits +1.4 MILLION and omni-channel STARBUCKS REWARD
Slide 7: Strategy
strategy 1Q21
Slide 8: Strategic Definitions
ALSEA Strategic Definitions Our Business Value Proposition Way to win Purpose We focus on the We are a company of people and for Alsea’s Culture Brand Portfolio operation of restaurant the people, committed to excellence Best Talent Ignite chains, own and in operation, acting with integrity and fran
Slide 9: Diversified Portfolio
DIVERSIFIED ACTUAL MARKET POPULATION GDP USD CLIENTS Portfolio 4,185 UNITS +395 MILLION 8,360 BILLION +234 MILLION POPULATION SEGMENTS DAY PARTS AB C+ C C-, D+ D, E Morning Lunch Afternoon Evening Served by the Informal sector 1Q21 9
Slide 10: Growth Strategy
GROWTH Strategy ORGANIC GROWTH ACQUISITIONS + SSS New Brands Growth Storage Openings Franchises & Sub-franchises New Brands Existing Brands New Markets New Markets OPERATING BUSINESS MIX OPERATING LEVERAGE Corporate EFFICIENCES + + Franchised Margin Sub-franchised Cost of Sales Pricing Strategy Expa
Slide 11: Mexico Strategy
Mexico Strategy TOTAL UPSIDE + 1,685 STORES Market Holding Capacity with SIGNIFICANT upside 26 31 43 19 31 22 67 37 12% 1% 28% 39% Franchises 81% Corporate 69% 66% 62% 57% 46% 30% 33% 1Q21 11
Slide 12: Europe Strategy
Europe Strategy TOTAL UPSIDE + 1,300 STORES Market Holding Capacity with SIGNIFICANT upside 50 32 54 40 48 60 9% 7% 39% 14% Franchises 11% Corporate 43% 51% 29% 35% 38% 29% 11% SPAIN PORTUGAL FRANCE BELGIUM NETHERLANDS LUXEMBOURG 1Q21 12
Slide 13: South America Strategy
South America Strategy AVAILABLE MARKET + 550 OPPORTUNITY STORES Market Holding Capacity with SIGNIFICANT upside 48% 42% 69% 84% 39 35 49 28 40 67 59 67 60 61 72 Franchises 72% 9% Corporate 61% 65% 60% 51% 33% 32% 33% 40% 39% 28% ARGENTINA CHILE COLOMBIA URUGUAY 1Q21 13
Slide 14: Distribution Centers
DISTRIBUTION Centers SUPPLY CHAIN MODEL MEXICO VARIES IN REGION 4 Hermosillo DISTRIBUTION Argentina 130 STORES CENTERS • Operation and distribution through a third party • +300 suppliers • +1,300 SKUs Monterrey Colombia 261 STORES • Hybrid model of distribution (mix between own and third party resou
Slide 15: Alsea Operation Center COA
ALSEA Operation Center 74,500 m2 TOTAL LAND 17,228 RACK POSITION warehouses offices 46,000 m2 10,004 COA BUILT WAREHOUSE +50 CENTRALIZED 1,761 DOCKS OPERATION IN REFRIGERATE bakery MEXICO CITY AND SURROUNDINGS commissary 5,463 FROZEN fresh dough production 1Q21 15
Slide 16: Financials
Financials 1Q21
Slide 17: Consolidated Results pre-IFRS
Consolidated Results pre-IFRS 16 Sales EBITDA 1Q20 12,085 (15.6)% 1Q20 1,227 (43.7)% 1Q21 10,200 1Q21 691 FY19 57,444 (33.4)% FY19 7,650 (80.5)% FY20 38,229 FY20 1,489 Net Ordinary Income Net Debt/ EBITDA 1Q20 -390 (24.7)% 1Q20 3.5x 1Q21 -487 1Q21 29.5x FY19 1,081 N.A. Excluding effect of IFRS 16, a
Slide 18: Consolidated Results post-IFRS
Consolidated Results post-IFRS 16 Sales EBITDA 1Q20 12,105 (15.6)% 1Q20 2,495 (18.0)% 1Q21 10,212 1Q21 2,045 FY19 58,155 (33.8)% FY19 12,618 (44.6)% FY20 38,495 FY20 6,988 Net Ordinary Income Net Debt/ EBITDA 1Q20 -390 (20.2)% 1Q20 4.3x 1Q21 -469 1Q21 8.2x FY19 1,085 N.A. Including the restatement d
Slide 19: Business Overview Mexico
Business Overview Mexico 1% 1% 1% 2% 2% Units 3% Sales* 3% Adjusted 2% 1% 4% 2% 5% 1% EBITDA* 3% 1% Pre IFRS 16 4% 8% 6% 35% 37% 12% 9% 13% 51% 12% 24% 33% 24% 83% Corporate 17% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 1Q21 FY20 1Q21 FY20 2,467 2,215 2,346 2,272 2,092 2,184 2,171 SSS
Slide 20: Business Overview Europe
Business Overview Europe Other** 1% 1% 1% 2% 1% Units 3% Sales* 2% Adjusted 2% 4% 5% EBITDA* 7% 2% 8% 10% Pre IFRS 16 34% 37% 11% 9% 10% 12% 64% 17% 16% 23% 18% 63% Corporate 37% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 1Q21 FY20 1Q21 FY20 1,398 1,376 1,375 (29.2%) (24.4)% (29.2%) (2
Slide 21: Business Overview South America
Business Overview South America 1% 1% Units 1% Sales* 2% Adjusted 1% 4% 4% EBITDA* 2% Pre IFRS 16 21% 19% 15% 42% 48% 47% 27% 36% 29% 95% Corporate 5% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 1Q21 FY20 1Q21 FY20 628 640 633 639 SSS (4.9%) (20.1)% (4.9%) (20.1)% 481 543 97% Revenues 1
Slide 22: Business Overview Alsea
Business Overview Alsea 1% Other** 1% 2% 1% 1% 2% 1% 2% 2% Units 3% 2% Sales* 3% 2% Adjusted 2% 1% EBITDA* 1% 2% 3% 3% 1% 1% Pre IFRS 16 3% 4% 30% 5% 36% 8% 39% 6% 11% 8% 10% 12% 33% 29% 30% 78% Corporate 22% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 1Q21 FY20 1Q21 FY20 4,310 4,193 4,
Slide 23: Leverage and CAPEX
Leverage and CAPEX 9% 11% 11% 11% 9% 7% 4% - 2.9x 2.3x 2.4x 2.0x 3.4x 2.9x 19.0x - CAPEX as percentage of sales Net Debt / EBITDA 4.8 4.3 4.3 CAPEX 3.4 3.8 (excluding acquisitions) 3.2 2.1 1.7 2014 2015 2016 2017 2018 2019 2020 2021e FIGURES IN BILLION PESOS 1Q21 23
Slide 24: Debt Profile
DEBT Profile Pre IFRS 16 Post IFRS 16 Debt Maturity Capital structure 1Q21 1Q20 1Q21 1Q20 Net Debt / EBITDA 29.5 x 3.5 x 8.2 x 4.3 x 12% 22% 36% 8% 7% 9% 6% EBITDA/ Interest Paid 2.3 x 0.3 x 0.5 x 0.2 x 11,564 x Average cost 6.6% Peso 7.0% 7,178 Euro 1.9% 1Q21 Main Banks 1Q21 3,922 Bond Debt 25% Sco
Slide 25: Ensure the Safety, Health and Well-Being of Our Customers, Employees and Communities
Ensure the Safety, Health and Well-Being of Our Customers, Employees and Communities OUR CUSTOMERS OUR EMPLOYEES OUR COMMUNITIES Our commitment is that we will implement the highest Full support for the health and safety of our employees and Dedicated to serving our communities constructively throug
Slide 26: Contingency: Short-term Revenue Initiatives
Contingency Continued Focus on Executing our Contingency. Plan Through Short-term Revenue Initiatives Delivery and technology at the core of Alsea's business provide flexibility to face the current situation • Open stores in all markets following each country's regulations and guidelines and 1 In-St
Slide 27: Contingency: Plan Execution
Contingency Plan Execution Swift implementation and execution of action plan to enhance liquidity • Labor support initiatives supported by governments and unions (ERTE and “4x3") 1 Personnel • Governments support programs: Spain, France, Argentina, Chile, Colombia and the Netherlands • Lean and flex
Slide 28: Contingency: Plan Execution
Contingency Plan Execution Swift implementation and execution of action plan to enhance liquidity 1 • Contactless experience and implementation of safety protocols in all units 2 • Alignment of employee trainings to post-Covid-19 requirements • Reinforce Brand OwnersReinforce alternative distributio
Slide 29: Investor Information
ALSEA Investor information Headquarters Alsea, S.A.B. de C.V. Av. Revolución #1267 -21st. Floor Salvador Villaseñor Corporate Tower Col. Los Alpes, Del. Alvaro Obregón ri@alsea.com.mx Zip Code 01040, Mexico City Phone: +52 (55) 7583-2000 Phone: +52 (55) 7583-2000 The slides of this presentation, con
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