Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q1 2018 Earnings Presentation
25 slides from Alsea, S.a.b. De C.v's earnings presentation, 2018
Slide 1: Update 1Q18
Aramis gO, Archi’ LAVACA ———— —— i ad
Slide 2: Our Presence
Our Presence 14 79% Brands 3,468 70,683 employees Corporate units 437 21% Franchises millions clients served 2,358 555 Mexico Spain 241 Argentina 155 Colombia 155 Chile 4 Brazil 1Q18 | Alsea 2
Slide 3: Alsea's History
Alsea’s History 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2017 1 500 1,000 1,862 2,714 3,195 3,468 Launch Business Model Expansion Consolidation 1Q18 | Alsea 3
Slide 4: Alsea Mexico - Today
Alsea Mexico - Today Stores Corporate Franchises Total Alsea Mexico Employees 2 21 4% 2 Vips 438 276 714 Domino's Starbucks 5% Italianni's 668 668 27% 54% Burger King 7% Chili's El Portón 181 248 429 54% 2 2 21 DIA 7% Vips Sales P.F. CHANG'S 4% 8% Domino's California Pizza Kitchen 67 67 Share 18% Al
Slide 5: Alsea International - Today
Alsea International - Today Stores Corporate Franchises Total Alsea International Employees 279 45 324 2 2 3% 2% 46% 262 262 23% 11% Burger King Domino's 229 229 Sales 35% Starbucks 23% Foster's Hollyw Share 15% Archie's 10 10 P.F. CHANG’S Alsea Other 2 2 Spain 30% 96 133 229 3% 2% South America 8 9
Slide 6: Alsea - Today
Alsea - Today Stores Corporate Franchises Total Sales per geography Employees 717 321 1,038 1%1%1% Domino's 930 930 2% 2% 3% Burger King Vips 410 248 658 4% Starbucks 22% 268 5 273 23% 4% Italianni's Foster's Hollywood 4% Chili's 96 133 229 5% El Portón 69 69 54% 2% 2% 1%1%1% Domino's 18% Supply P.F
Slide 7: Innovation – Consumer - Technology
Innovation – Consumer - Technology Multi-brand Rewards program Apps Aproximately My starbucks Rewards 35% increase in average ticket around 1.2 Million members • Description / Objective: More than Domino’s App • know your customer Reach: 1,350 more than 1.- 7 1st stage - Mexico Restaurants on board
Slide 8: 1Q18 Strategy
1Q18 Strategy 1Q18 | Alsea 8
Slide 9: Strategic Definitions
Strategic Definitions Purpose Ignite people’s spirit We are a determined community committed to excellence and integrity, we maximize synergies Value to deliver a surprising offer to our Guests and to make sure that our Restaurants generate Proposition extraordinary results, contributing with happin
Slide 10: Markets Diversified Portfolio
Markets Diversified Portfolio ,150 437 Popular Segments A/B C+ C C-/D+ D/E Actual Market Population GDP USD 3,units 468 496 million 5billion million Clients served as of Dec 17 LTM Per-Capita Expense | Food Service Industry Served by the informal sector (Figures in usd) 1,980 1,580 750 515 500 328 3
Slide 11: Growth Strategy
Growth Strategy Growth Margin expansions Operating Business Operating Organic Growth + Acquisitions Leverage + Mix + Efficiencies • SSS • New Brands • SSS • Corporate • Cost of Sales • Store Openings • Franchises & • Units • Franchised • Pricing • New Brands Sub-franchises • Sub-franchised Strategy
Slide 12: Mexico Strategy
Mexico Strategy Franchises Market Holding Capacity with significant upside Corporate Total units upside 32% 100 50 0 100-110 Openings 2018e 30-35 - 50-55 5-7 1 1 2-5 - 2 12-15 1Q18 | Alsea 12
Slide 13: International Strategy
International Strategy Market Holding Capacity with significant upside Total units upside 40% 55% 80% 45% 100 100 50 50 0 0 Spain Argentina Colombia Chile 90-100 Openings Argentina Chile Colombia Brazil Spain 2018e 20-25 15-20 12-15 1 35-40 1Q18 | Alsea 13
Slide 14: Delivery Distribution Centers in Mexico
4 Delivery Distribution Centers in Mexico Monterrey 264 Stores Nuevo León, Tamaulipas, Durango, Hermosillo Coahuila, Chihuahua, Zacatecas. 110 Stores Sonora, Sinaloa and B.C. Cancún 88 Stores Quintana Roo, COA 1,347 Stores Yucatán, Campeche, Tabasco. Note: Does not include the distribution centers f
Slide 15: Alsea Operations Center (COA)
Alsea Operations Center (COA) Centralized operation in Mexico City and surroundings Mass Warehouses + Bakery + Commissary + production + Offices Total Land 74,500 m 2 with 46,000 m2 built +50 docks 17,228 Rack position 10,004 1,761 5,463 Warehouse Refrigerated Frozen 1Q18 | Alsea 15
Slide 16: 1Q18 Financials
1Q18 Financials 1Q18 | Alsea 16
Slide 17: Consolidated Results
Consolidated Results Sales EBITDA CAGR 28% (’13-’17) CAGR 33% (’13-’17) 1,426 9% 13% 11% 25% 6,466 11,012 42,529 37,702 1,287 10,093 5,155 1Q17 1Q18 FY16 FY17 1Q17 1Q18 FY16 FY17 Net Ordinary Income CAGR 17% (’13-’17) Net Debt / EBITDA 11% 1,252 16% 254 1,126 2.5x 218 2.0x 1Q17 1Q18 FY16 FY17 1Q17 1
Slide 18: Business Overview - Mexico
% 3% 5% 3% 4% 5% 5% 5% Starbucks Vips 30%Business 6% Overview - 3% 27% Mexico 27% Domino's 3% 8% Burger King 5% 4%3%5%7% 3% 2% 3% Chili's 3% 5% 5% 5% 4% 5% 4% 5% 5% Starbucks Starbucks Italianni's 12% Vips Vips DIA 6% 12% 7% 30% 27% 6% 27% 27%27% Domino's Domino's El Portón 28% 7% 8% 22% 8% 22% Burg
Slide 19: Business Overview - International
11 2% 2 1 11 Business 2% 2 1 Overview - International 11 20% 29% Burger King 29 % 3% 1 1 17% 11 Starbucks 2% 2 1 Foster’s Hollywood 35% Domino’s Burger King P.F. Chang’s 20% 29%29% Burger King 21% 29 % 20% 17% 17% Starbucks Starbucks Foster’s Hollywood LAVACA 35% Foster’s Hollywood 24% Domino’s Caña
Slide 20: Business Overview - Alsea
3% 2% 3% Starbucks 5% 30% 4% 23% 24% Burger King Domino’s 8% Business 2%2% 2% 8%Overview - Alsea 2%2% 2% Vips Foster’s Hollywood Chilli’s 2% 2% 1% 2% 3% 2% 2%2% 2% 3% 10% 2%2% 2% Starbucks Italianni’s 12% 2% 5% 3% 20% 4% 6% 3% 23% 3% 23% 21% 5% 24% Starbucks Burger King Burger King Domino’s DIA 30%
Slide 21: Debt Profile
Debt Profile Debt maturity Capital structure 1Q18 1Q17 Average cost 8.63% 14% 17% 34% 4% 8% 1% 1% 8% - 13% Net Debt / EBITDA 2.0x 2.5x Peso: 8.52% 5,205 EBITDA / 4.9x 5.4x Euro: 1.89% Interest Paid 2,683 Debt structure 1Q18 Main banks 2,078 2,000 Bond Debt 45% Scotiabank 8% 1,293 1,210 665 Bank Debt
Slide 22: Leverage & CAPEX
Leverage & CAPEX 0.96x 2.15x 2.93x 2.30x 2.38x 2.04x 2.01x 4,882 4,341 3,650 3,439 2,751 2,055 969 CAPEX Total debt / EBITDA 2012 2013 2014 2015 2016 2017 1Q18 Figures in million pesos Note: Alsea has managed to succesfully complete the acquisition of new brands in its portfolio, improving its lever
Slide 23: Guidance 2018
Guidance 2018 Top line EBITDA Growth Growth Between 240-270 Total openings EBITDA Low to Mid Slightly above 14% Double Digit EBITDA margin 190-210 50-60 Growth + corporate sub-franchisees 4 -4.5Bn CAPEX* SSS Revenues Mid to High Single Digit Low to Mid Double Digit Growth 2.2x-2.4x Net debt/EBITDA *
Slide 24: Five Year Goals
Five Year Goals 2018e 2022e Low to mid Sales CAGR* > 15% double digit growth Low to mid EBITDA CAGR* = High-teens double digit growth EBITDA Slightly above 14% >15% margin expansion Acum >$ 5.50 pesos Dividends >$0.70 pesos per share per share Adjusted EPS* $1.70 CAGR* >25% ROIC 13% >20% ROE 12% Low
Slide 25: Investor Information
Headquarters mation I n vestor I nfor Alsea, S.A.B. de C.V. señor / IR Av. Revolución #1267 – 21st. Floor Salvador Villa .mx ri@alsea.com Corporate Tower (5 5) 75 83-2000 Phone: +52 Col. Los Alpes, Del. Alvaro Obregón Zip Code 01040, Mexico City Phone: +52 (55) 7583-2000 The slides of this presentat
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