Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — 3Q17 Earnings Presentation
23 slides from Alsea, S.a.b. De C.v's earnings presentation, Mar 15, 2017
Slide 1: Update 3Q17
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Slide 2: Our presence
Our presence 14 79% Brands 3,353 68,654 employees Corporate units 427 21% Franchises millions clients served 2,295 530 Mexico Spain 231 Argentina 148 Colombia 145 Chile 4 Brazil 3Q17 | Alsea 2
Slide 3: Alsea Mexico - Today
Alsea Mexico - Today Stores Corporate Franchises Alsea Mexico Employees 426 257 2 21 3% 2 Vips Starbucks Domino's 630 55% 6% Burger King 31% Italianni's 205 241 5% El Portón 55% Chili's Sales 7% DIA 62 2 21 2Share Vips P.F. CHANG'S 3% California Pizza Kitchen 8% Starbucks 15% Alsea 20 2 Domino's The
Slide 4: Alsea International - Today
Alsea International - Today Stores Corporate Franchises Alsea International Employees 255 42 21 4% 3% 45% 250 24% Burger King 21 4% 3% 12% Domino's 218 Sales 35% Starbucks 19% Foster's Hollywood Share Archie's 10 15% P.F. CHANG’S Burger King Alsea 2 1 Spain12% Domino's Other 92 133 4% 3% South Ameri
Slide 5: Alsea - Today
Alsea - Today Stores Corporate Franchises Sales per geography Employees 681 299 1%1%1% Domino's 880 2% 2% 2% Vips Burger King 423 241 4% Starbucks 21% 262 5 20% 4% Italianni's Foster's Hollywood 4% Chili's 92 133 1% 1%1% 5% Domino's 55% El Portón 63 2% 2% P.F. CHANG'S 2% Vips 21% 78 13 25% Burger Ki
Slide 6: Multi-brand Rewards program
Multi-brand Rewards program 35% • Description / Objective: know 1,300 your customer • Reach: 1st stage - Mexico • How does it work: Gaining and Redeeming points 910,000 6% 3Q17 | Alsea 6
Slide 7: 3Q17 Strategy
3Q17 Strategy 3Q17 | Alsea 7
Slide 8: 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 9: Markets Diversified Portfolio
Markets Diversified Portfolio ,149 427 Popular Segments A/B C+ C C-/D+ D/E Actual Market Population GDP USD 3,units 353 497 million 5billion million Clients served as of Sep 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 10: Mexico Strategy
Mexico Strategy Franchises Market Holding Capacity with significant upside Corporate Total units upside 32% 100 50 0 85-95 Openings 2017e 5-10 - 50-55 5 1 2 8-10 - 2 8-10 3Q17 | Alsea 10
Slide 11: 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 85-95 Openings Argentina Chile Colombia Brazil Spain 2017e 20-25 15-20 15-20 1-2 25-30 3Q17 | Alsea 11
Slide 12: 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 13: 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 14: 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 46,000 m with m 2 2 built Transition phases during 2017 16,877 Rack position 3Q17 | Alsea 14
Slide 15: 3Q17 Financials
3Q17 Financials 3Q17 | Alsea 15
Slide 16: Consolidated Results
Consolidated Results Sales EBITDA CAGR 29% (’12-’16) CAGR 34% (’12-’16) 9% 10,475 17% 37,702 15% 1,415 20% 5,155 9,601 32,288 4,302 1,328 3Q16 3Q17 FY15 FY16 3Q16 3Q17 FY15 FY16 Net Ordinary Income CAGR 29% (’12-’16) Net Debt / EBITDA 9% 1,126 23% 229 1,032 2.7x 2.5x 186 3Q16 3Q17 FY15 FY16 3Q16 3Q1
Slide 17: Business Overview - Mexico
% 4% 5% 3% 5% 6% Starbucks Vips 27%Business 6% Overview - Mexico 27% 14% 27% Domino's Burger King 5% 4%4% 7% 3% 2% 3% 5% Chili's 5% 5% 6% 3% 5% 4% 7%3% Starbucks Vips Starbucks Italianni's DIA 27%27% 6% 27% Vips 12% 19% 6% 8% 14% 27% 15% 27% Domino's Domino's El Portón 6% 22% 8% 20% Burger King Burg
Slide 18: Business Overview - International
1 3% 2% 1 2% 21%Business 2% 1 2% Overview 20% - International 19% 35% Burger King Starbucks 1 1 3% 2% 1 2% Foster’s Hollywood 1 40% Domino’s Burger King P.F. Chang’s 19% 35%35% 21% 19% Burger King 20% 24% 28% 20% Starbucks Foster’s Hollywood La VacaStarbucks Foster’s Hollywood 40% Cañas y tapas 17%
Slide 19: Business Overview - Alsea
% 3% 3% 10% Starbucks 3% 26% 4% 23% 3% 26% Burger King Domino’s 4% Vips Business 2% 2% 3% 8%Overview - Alsea 1% 2% 1% Foster’s Hollywood Chilli’s 3% 2% 1%2% 9% 3% 2% 3% 10% 2% 2% 1% 2% 1% 3% Starbucks Italianni’s 4%20% 12% 23% 3%3% 3% 22% 10% 26% 15% Burger King Starbucks DIA 9% 7% 23% Domino’s El P
Slide 20: Debt Profile
Debt Profile Debt maturity Capital structure 3Q17 3Q16 Avarage cost 6% 10% 19% 33% 20% 3% 1% 2% 6% Net Debt / EBITDA 2.7x 2.5x Peso: 8.23% 5,301 EBITDA / 4.6x 6.3x Euro: 2.0% Interest Paid 3,006 3,230 Debt structure 3Q17 Main banks 1,031 1,564 Bond Debt 25% Bank of America 19% 1,000 514 Bank Debt 75
Slide 21: Guidance 2018
Guidance 2018 Top line EBITDA Growth Growth Between 240-270 Total openings EBITDA Low to Mid Close to 14% Double Digit EBITDA margin 190-210 50-60 Growth + corporate sub-franchisees 4 Bn CAPEX* SSS Revenues Mid to High Single Digit Low to Mid Double Digit Growth 2.2x-2.4x Net debt/EBITDA *Excluding
Slide 22: Five years goals
Five years goals 2018e 2022e Low to mid Sales CAGR* > 15% double digit growth Low to mid EBITDA CAGR* = High-teens double digit growth EBITDA Close to 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 20’s
Slide 23: 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