Grupo Posadas Sab De Cv Class A · BMV:POSADAS/A
Grupo Posadas Sab De Cv Class A — Q4 2017 Earnings Presentation
31 slides from Grupo Posadas Sab De Cv Class A's earnings presentation, Feb 22, 2018
Slide 1: Operative & Financial Results - 4Q17
O p e ra t i ve & F i n a n c i a l Re s u l t s - 4 Q 1 7 02/22/2018
Slide 2: Disclaimer
Disclaimer Operative & Financial Results - 2017 This Presentation has been produced by Grupo Posadas, S.A.B. de C.V. (the “Company” or “Posadas”). This presentation is strictly confidential and may not be reproduced or delivered, in whole or in part, to any other person. This Presentation contains i
Slide 3: 2017 – A year of great achievements
2017 –A year of great achievements Operative & Financial Results - 2017 Maximize Company´s Hotel pipeline market cap New Projects Mayan Riviera: Live Aqua Sales & Marketing and Fiesta Americana hotel Fiesta Rewards (loyalty complex. program)/ “Viaja” Growth Economies of Vacation properties Live Aqua
Slide 4: World Tourism Organization
World Tourism Organization Operative & Financial Results - 2017 Ranking WTO 2016 2017* International Tourist Arrivals # # Country Million people Growth Rate • Third generator of US dollar inflows just 1 1 France 88 6.5% behind remittances and mining. 2 2 Spain 81.3 8.0% 3 3 United 72.6 (3.9%) • Inte
Slide 5: USA Travel Warning
USA Travel Warning Operative & Financial Results - 2017 The USA Government lifted the travel warning for the states of Baja California and Quintana Roo. • Travel restrictions remains for 5 states: Colima, Guerrero, Michoacán, Sinaloa y Tamaulipas. Nivel 1. Take precautions Nivel 2. Raise Precautions
Slide 6: Hotels in the Mayan Riviera
Hotels in the Mayan Riviera • Keys: 340. • Live Aqua Residence Club sales room. • Conference rooms. • 11 Restaurants and 7 Bars. • Keys: 515. • Fiesta Americana Vacation Club sales room. • Conference rooms. • 14 Restaurants and 7 Bars. Phase 1 Phase 2 Resort Spa Convention center of 3,000 m2 with ca
Slide 7: LARC Los Cabos
LARC LOS CABOS POSADAS
Slide 8: Live Aqua Residence Club
Operative & Financial Results - 2017 Live Aqua Residence Club • Total investment: $434 million • 109 rooms 8
Slide 9: Hotels in Cuba
Operative & Financial Results - 2017 Hotels in Cuba Fiesta Americana Punta Varadero All Inclusive Fiesta Americana Holguin Cuba All Inclusive • 633 rooms • 749 rooms • 8 restaurants • 6 restaurants • Gym • Gym • 10 year management contract • 10 year management contract 9
Slide 10: Dominican Republic Hotel – Punta Cana
Operative & Financial Results - 2017 Dominican Republic Hotel – Punta Cana Grand Fiesta Americana Punta Cana All Inclusive • 554 rooms and Suites • SPA and Gym • Meetings and event rooms • More than 9 restaurants • Cristal lagoon • 15 year management contract with an option for 5 additional years 10
Slide 11: New Brand - LatinoAmerican
Operative & Financial Results - 2017 New Brand - LatinoAmerican • Hotels Urban – (G) Local. • Designed to merge into the most iconic neighborhoods of large cities to bring together the hyper-modern and hyper-connected travelers. 11
Slide 12: Libera tu mente
o> Libera tu mente con vigjes diferentes: 12
Slide 13: Re_set
Re_set An exclusive discount plan created just for you that gives you the possibility to discover destinations in Mexico and abroad whenever and wherever you want. BENEFITS MEMBERSHIPS Annual Discount COST (USD) Term Access to the best booking rates in the rates 1 market at Posadas. Adventurer 11,99
Slide 14: Sales & Marketing
Operative & Financial Results - 2017 Sales & Marketing • Commercialization • Sustainability • Total system sales reached $16,682 • All our hotels achieved the “Green million, consolidated revenues Key” distinctive. $8,907 million, +12%. • 85 hotels with TripAdvisor “Eco • Gross operating profit grow
Slide 15: Fiesta Rewards (Loyalty Program) and Viaja
Operative & Financial Results - 2017 Fiesta Rewards (Loyalty Program) “VIAJA” • 30th anniversary of the program. • Launched for eighth consecutive year. • Loyalty programs represents 32% of total • Generated 35,779 room nights. Posadas´ occupancy (1,854,917 room nights). • Revenues of $709 million p
Slide 16: Divestment of Assets
Operative & Financial Results - 2017 Divestment of Assets Hotel Fiesta Americana Condesa Cancun • Price: $2,892 million. • Estimated EBITDA of $1,369 million. • Capex of $120 million on public areas funded by purchaser and seller. • 20 year term lease agreement. Hotel Fiesta Americana Hacienda Galin
Slide 17: Remodeling – Fiesta Americana Condesa Cancun
Operative & Financial Results - 2017 Remodeling – Fiesta Americana Condesa Cancun • Total remodeling investment: $305 million. • Public areas: $120 million (50% Posadas / 50% Fibrahotel) to be concluded in November 2018. 17
Slide 18: Remodeling – Fiesta Americana Merida
Operative & Financial Results - 2017 Remodeling – Fiesta Americana Merida • Meeting rooms: $39 million • Public areas: $48 million • To be concluded by June 2018. 18
Slide 19: Remodeling – Fiesta Americana Hacienda Galindo
Operative & Financial Results - 2017 Remodeling – Fiesta Americana Hacienda Galindo • Total remodeling investment (room and public areas): $130 million. • To be concluded by June 2018. 19
Slide 20: Great Place to Work
Operative & Financial Results - 2017 Great Place to Work • Ranked # 8 among the best Companies to work in Mexico. • Ranked # 6 for Millennials. 20
Slide 21: 4Q17 - Highlights
Operative & Financial Results - 4Q17 4Q17 - Highlights • In 4Q17 and 2017 total revenues reached $2,056 million (+6%) and $8,907 million (+12%), respectively. • 4Q17 and LTM EBITDA of $441 million growing 12% and $1,652 million in 2017, respectively. • RevPAR grew 3.6% in the 4Q17 and 7.6% in 2017.
Slide 22: Income Statement
Operative & Financial Results - 4Q17 Income Statement (million pesos) 4Q17 % QoQ 2017 % QoQ 2,056 100 6% Total revenues 8,907 100 12% 1,615 79 5% Expenses 7,255 81 15% 441 21 12% EBITDA MXN 1,652 19 0% 21% (0.4pp) Margin 19% (0.2pp) 580 na Exchange (gain) (297) na (448) (22) na Net Income (484) (5)
Slide 23: EBITDA 4Q17
Operative & Financial Results - 4Q17 EBITDA 4Q17 (million pesos) vs YoY 4% 19% (6%) 12% 482 442 416 108 2017 2017 * 2017 ** 2017 1Q 2Q 3Q 4Q (*) $108 million EBITDA from the sale of the Fiesta Inn Monterrey Valle hotel. 23
Slide 24: Hotel Performance
Operative & Financial Results - 4Q17 Hotel Performance (MXN) OWNED AND LEASED HOTELS % Occupancy RevPAR 1,415 77% 1,351 77% 1pp 1,284 1,302 76% 76% 76% 76% 5% 75% 75% 75% 1,222 1,211 74% 1,1761,151 73% 72% 1,074 71% 990 972 989 69% 68% 891 66% 821 803 816 SYSTEM WIDE HOTELS 69% 957 68% 914 924 68% 6
Slide 25: Vacation Properties
Operative & Financial Results - 4Q17 Vacation Properties (million pesos) Gross sales LTM Receivables 2,678 4,389 2,539 5% 3,958 11% 2,097 3,394 1,602 2,706 5% 13% 1,320 1,388 2,587 2,295 1,088 2,095 852 1,866 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 26: EBITDA LTM
Operative & Financial Results - 4Q17 EBITDA LTM (million pesos) 1,734 1,650 1,667 1,652 1,587 1,606 1,508 1,625 1,483 YoY 1,541 1,559 $2 1,362 1,478 1,332 0.1% 1,259 1,147 CAGR 4Q14 – 4Q17 954 20% 866 757 614 As reported Comparable 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q1
Slide 27: Free Cash Flow, Internal Reporting
Operative & Financial Results - 4Q17 Free Cash Flow, Internal Reporting (million pesos) Concept 2017 EBITDA 1,652 Working capital & Other (144) Asset Sales 435 CAPEX (803) Deferred Asset & Other (351) Interests, net (574) Taxes (812) FCF (597) Financings 210 Cash (387) Cash BOP 1,770 Cash EOP 1,384
Slide 28: Number of hotels and rooms by brand
Operative & Financial Results - 4Q17 Number of hotels by brand Vacation Luxury Upper Middle Economy Other Properties Other Total 2015 3 5 13 67 9 37 1 6 2 143 1Q16 2 2 2Q16 1 2 1 2 6 3Q16 1 1 4Q16 1 1 1 1 4 Exits 2016 (2) (2) (4) 1Q17 1 2 3 2Q17 1 1 2 3Q17 1 1 Exits 2017 (1) (1) 4Q17 2 1 1 1 5 Total
Slide 29: Development Plan
Operative & Financial Results - 4Q17 Development Plan As of December 2017 (25,608 rooms) Estimated portfolio …. December 2021 (35,574 rooms) +39% Other Live Aqua Other 2% Grand Fiesta 1% 2% Live Aqua Americana FAVC 9% FAVC 4% 7% Gamma 7% Grand Fiesta Gamma 5% Americana 6% 9% Fiesta ONE Americana 21%
Slide 30: Financial Health
Operative & Financial Results -4Q17 Financial Health (Fx eop 4Q17: 19.7354) Net Interest Coverage Net Debt (US$M) 4Q17 4Q16 (Figures in millions) US$ Notional IFRS MXN US$ Notional IFRS MXN FX eop: 19.7354 20.6640 Net Debt / EBITDA EBITDA LTM 1,652 1,650 Cash 1,384 1,770 Indebtedness: Senior Notes 2
Slide 31: Fiesta Americana Condesa Cancún Hotel
Fiesta Americana Condesa Cancún Hotel