Grupo Elektra SAB de CV · BME:XEKT
Grupo Elektra SAB de CV — Bear Stearns Global Credit Conference 2003
29 slides from Grupo Elektra SAB de CV's conference presentation, June 2003
Slide 1: Bear Stearns – Global Credit Conference
Presentation for: Bear Stearns – Global Credit Conference June 2003 1
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer This presentation contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the Securities and Exchange Commission, in our annual report to shareholders, in our proxy statements, in our offering ci
Slide 3: Agenda
Agenda Introduction to Grupo Elektra New Corporate Structure Grupo Elektra 1Q03 Highlights Banco Azteca 1Q03 Highlights Grupo Elektra Total Portfolio Financial Strategy for 2003 Operating Strategy for 2003 3
Slide 4: Introduction to Grupo Elektra
Introduction to Grupo Elektra 4
Slide 5: Solid Track Record
Solid Track Record Millions of Dollars* Revenue EBITDA CAGR CAGR $1,594 15% $1,505 18% $274 $299 $1,483 $249 $1,258 $199 $1,118 $183 $910 $153 $705 $108 '96 '97 '98 '99 '00 '01 '02 '96 '97 '98 '99 '00 '01 '02 *Conversion based on the exchange rate of Ps.10.76 per US dollar as of December 31, 2002 5
Slide 6: Store Formats
Store Formats 638 stores in México Acquired in 1999 for US$77.7 million 64 in Latin America 94 stores in Mexico Target Market: D+ and C segments Target market: C and C+ segments Focuses in electronics, home Focuses in furniture and state-of- the-art appliances and furniture electronics Format create
Slide 7: Distribution and Products
Distribution and Products Extensive store infrastructure Offer of leading Brands Presence in 220 cities and Products: 946 950 953 885 890 819 Electronics Household Appliances Furniture Small Appliances Telephones Computers Extended Warranties Money transfers 1998 1999 2000 2001 2002 1Q03 7
Slide 8: New Corporate Structure
New Corporate structure we Grupo Elektra
Slide 9: Grupo Elektra Structure
Grupo Elektra Structure Commercial Financial Division Division Credit Insurance Retail (As of Nov. 30, 2002 (TBA) & Latin America) Latin Latin Credimax New Mexico Mexico America Credimax Products America (Other Channels) Services 9Almacenes 9Telephone García Banking 9H-E-B 9Internet 9Cuenta Socio 9H
Slide 10: 1Q03 Highlights
1Q03 Highlights (Equity Method) 10
Slide 11: Highlights: Income Statement
Highlights Income Statement Millions of Pesos Revenues $183 EBITDA $63 +5% +14% $4,950 $545 $825 $512 $4,053 $4,089 $4,235 $449 $470 $3,705 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2002 2003 2002 2003 $128 $62 Gross Profit +8% Operating +14% Income $2,078 $825 $1,733 $1,669 $1,761 $1,634 $545 $512 $449 $470 1Q
Slide 12: Highlights: Balance Sheet
Highlights Balance Sheet Millions of Pesos Cash (-$34) Total ($1,377) -2% -15% Liabilities $3,117 $9,472 $10,067 $8,908 $8,341 $2,270 $2,236 $7,530 $2,041 $1,831 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2002 2003 2002 2003 Inventories ($202) -7% $3,017 $2,795 $2,723 $2,593 $2,191 1Q 2Q 3Q 4Q 1Q 2002 2003 12
Slide 13: Banco Azteca 1Q03 Highlights
Ce) BANCO AZTECA 1Q03 Highlights 13
Slide 14: Net Deposits - Banco Azteca
Net Deposits - Banco Azteca (As of March 31, 2003) 2.0 $2,000 Accounts Millions (millions) of Ps. 1.5 1.6 1.5 1.5 1.5 1.4 $1,500 1.4 1.3 1.3 567,000 1.1 1.2 1.2 1.2 $769 m. 52% 1.1 1.1 98% 1.0 $1,000 0.5 $500 - $0 2002 Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13 2002 January
Slide 15: Banco Azteca Funding Mix
Banco Azteca Funding Mix Millions of Ps. December 31, 2002 March 31, 2003 Amount % Rate Amount % Rate Deposits Guardadito $ 785 64% 1.0% $ 1,555 36% 2.0% Treasury Funding Promissory Notes 338 27% 8.2% 2,747 64% 9.5% Interbank Credit 113 9% 8.0% - 0% - Total Funding $ 1,236 100% 3.6% $ 4,302 100% 6.7
Slide 16: 1Q03 Total Portfolio (Credit + Credimax)
1Q03 Total Portfolio (Credit + Credimax) 16
Slide 17: Portfolio by term
Portfolio by term Percentage (%) Average Term: 46 48 49 49 50 6 4 5 6 10 65 weeks 63 70 71 69 69 53 weeks 11 39 weeks 15 13 13 10 14 26 weeks 9 9 10 10 13 weeks 6 2 1 1 1 1Q 2Q 3Q 4Q 1Q 2002 2003 17
Slide 18: Active Credit Accounts
Active Credit Accounts Thousands +338 +18% 2,155 2,218 1,947 2,016 1,880 373 1,119 Banco Azteca (Credimax) 1,782 Credit 1,098 1Q 2Q 3Q 4Q 1Q 2002 2003 18
Slide 19: Breakdown of Gross Portfolio
Breakdown of Gross Portfolio Millions of Pesos +388 +9% $4,694 $4,468 $4,525 $4,306 $4,226 Banco Azteca Portfolio $2,603 $2,091 Grupo Elektra Portfolio (as of November 30, 2002) 1Q02 2Q02 3Q02 4Q02 1Q03 19
Slide 20: Financial Strategy for 2003
Financial Strategy for 2003 20
Slide 21: Financial Strategy 2003
Financial Strategy 2003 Objectives: 9 To reduce debt. 9 To pre-pay expensive debt. 9 To reduce exposure to dollar-denominated debt. 9 To separate, to a certain extent, Bank and Retail operations. 9 To foster transparency by: ¾ Eliminating inter-company agreements. ¾ Separating Bank and Retail assets
Slide 22: Financial Strategy 2003
Financial Strategy 2003 During 1Q03, Grupo Elektra entered into a series of arms-length transactions with Banco Azteca, including: 9 Sale of Assets directly related with Banco Azteca’s day-to- day operations. 9 Rent and utilities paid in advance: 9 Elektrafin conducted five private securitization tr
Slide 23: Financial Strategy 2003: Cash In and Out
Financial Strategy 2003 Cash In: Sale of assets, rent and utilities Ps.$ 650 m. Private securitization Ps.$1.7 bn. Peso debt issued Ps.$ 550 m. Cash Out: Payment of US$ debt US$ 182 m. Payment of public securitization Ps.$2.45 bn. 23
Slide 24: Maturity of Debt with Cost as of 4Q02
Maturity of Debt with Cost as of 4Q02 Millions of Pesos $2,898 $1,370 $537 $169 $169 $0 2003 2004 2005 2006 2007 2008 Total Debt with Cost*: $5,142 Cash: $3,119 Net debt: $2,023 * Total Debt with Cost Ps. $5,142 = Short Term debt of Ps. $1,370 + Long Term Debt of Ps. $3,772 24
Slide 25: Maturity of Debt with Cost as of 1Q03
Maturity of Debt with Cost as of 1Q03 Millions of Pesos $2,965 $792 $17 $2 $0 $0 2003 2004 2005 2006 2007 2008 Total Debt with Cost*: $3,775 Cash: $2,236 Net debt: $1,539 * Total Debt with Cost Ps. $3,775 = Short Term debt of Ps. $795 + Long Term Debt of Ps. $2,980 25
Slide 26: Operating Strategy for 2003
Operating Strategy for 2003 26
Slide 27: New Stores
New Stores Started 2003 with 90 “new” stores resulting from the conversion of our THE ONE stores. No new net stores (15-20 openings plus 15-20 closings of unproductive stores). Openings in underpenetrated locations: New regions. Suburbs of cities. Cities with 50,000 habitants. 27
Slide 28: Increased Efficiencies & Savings
Increased Efficiencies & Savings Two main initiatives to increase efficiencies & savings: A new compensation system based on personal contribution: Contribution = Sales – Costs & Expenses – Imputed CC The separation of assets between the retail division and Banco Azteca coupled with arm’s length con
Slide 29: Bear Stearns – Fixed Income Conference
Presentation for: Bear Stearns – Fixed Income Conference June 2003 29
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