Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q1 2019 Earnings Presentation
25 slides from Alsea, S.a.b. De C.v's earnings presentation, 2019
Slide 1: Update 1Q19
update 19
Slide 2: Our Presence
OUR PRE SENCE 95 286 64 4 35 230 18 16 4 32 77 105 UNITS UNITS Mexico Spain 661 2,477 1,036 34 Argentina Portugal 264 22 Colombia France 183 182 Chile Belgium 18 175 28 1,498 Uruguay Netherlands 5 82 Brazil Luxembourg 6 4 3 1,154 124 12 COUNTRIES 18 4,461 +85,000 +475,000 MILLION BRANDS RESTAURANTS
Slide 3: Alsea's History
A L S E A´S HISTORY 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2018 2019 units 1 500 1,000 1,862 2,714 3,195 4,461 Launch Business Model Expansion Consolidation 1Q 1 9 | AL S E A 3
Slide 4: Alsea Today
ALSEA T O D AYStores Corporate Franchises Total 16% 1,259 239 1,498 808 346 1,154 421 240 661 SALES 370 21 391 PER 99 131 230 GEOGRAPHY 47% 93 31 124 37% 81 14 95 77 77 64 64 35 35 7% 15 19 34 32 32 10 8 18 EBITDA 17 1 18 PER 33% 14 2 16 GEOGRAPHY 60% 6 6 4 4 Mexico Europe 4 4 South America TOTAL 3,
Slide 5: Innovation, Consumer, Technology
I N N O V AT I O N , C O N S U M E R , TECHNOLOGY COMING SOON 35% +1,350 increase IN AVERAGE RESTAURANTS ON BOARD TICKET LINKED TO WOW REWARDS APP IS IN CLOSE TO 6% of 3,500,000 Alsea MEXICO SALES REISTERED MULTIPLE BRAND USERS USERS spend 3x MORE THAN ONE mobile web call center BRAND USERS 1Q 1 9 |
Slide 6: Innovation, Consumer, Technology
I N N O V AT I O N , C O N S U M E R , TECHNOLOGY Digital Coupon • 3x more efficient than paper coupons • Up to 40% redemption • Smart targeting according to customers´needs and preferences +2.5 million 1.2 million DOMINO´S APP DOWNLOADS 2 million MY STARBUCKS 1.4 million MEMBERS FOSTERIANOS REWARDS
Slide 7: Strategy
strategy 19 1Q 1 9 | AL S E A 7
Slide 8: Strategic Definitions
S T R AT E G I C DE FINIT IONS Purpose Ignite people’s spirit We are a determined community committed to excellence and integrity, we maximize synergies to deliver Value a surprising offer to our Guests and to make sure that our Restaurants generate extraordinary results, Proposition contributing wi
Slide 9: Diversified Portfolio
DIVERSIFIED Actual Market 4,461units Population +600 GDP USD 5,150 >475 PORTFOLIO million billion million clients served as of Mar 19 LTM Population Segments Dayparts AB C+ C C-, D+ D, E Morning Lunch Afternoon Evening Servedby Served Informal the Informal by the Sector Sector 1Q 1 9 | AL S E A 9
Slide 10: Growth Strategy
GROW TH S T R AT E G Y Margin Growth Expansions Organic Growth Acquisitions Operating Business Mix Operating SSS New Brands Leverage Corporate Efficiencies Store Openings New Brands + Franchises & Sub-franchises Existing Brands SSS Units + Franchised Sub-franchised + Cost of Sales Pricing Strategy,
Slide 11: Mexico Strategy
M E X ICO S T R AT E G Y Market Holding Capacity with significant upside Franchises Corporate Total upside 30% 35-40 Openings 2019e 5-10 - 25 3 - - 2 - - 1Q 1 9 | AL S E A 11
Slide 12: Europe Strategy
EUROPE S T R AT E G Y Franchises Market Holding Capacity with significant upside Corporate Total upside 40% 50 Openings Spain Portugal France Belgium Netherlands Luxembourg 2019e 45 5 - - - - 1Q 1 9 | AL S E A 12
Slide 13: South America Strategy
SOUTH AMERICA S T R AT E G Y Franchises Market Holding Capacity with significant upside Corporate Available Market Opportunity 59% 48% 42% 69% 84% Argentina Chile Colombia Uruguay 35 - 40 Openings Argentina Chile Colombia Uruguay 2019e 10 25-30 - 5 1Q 1 9 | AL S E A 13
Slide 14: Distribution Centers
DISTRIBUTION CENTERS México Supply chain model 4 distribution centers varies in region Argentina • Operation and distribution through a third party • +300 suppliers • +1,300 SKUs Hermosillo Colombia 112 stores Monterrey • Hybrid model of distribution 269 Stores (mix between own and third party resou
Slide 15: Alsea Operation Center (COA)
A L S E A O P E R AT I O N CENTER Total Land 74,500 m2 L IZED OPER AT RA with 46,000 m2 built T IO N +50 docks CE N Warehouses COA Offices S IN NG M DI XI E CO N U AND SURRO 17, 228 Bakery Mass production Rack position Commissary 10,004 1,761 5,463 Warehouse Refrigerated Frozen 1Q 1 9 | AL S E A 15
Slide 16: Financials
financials financials 19 19 1Q 1 9 | AL S E A 16
Slide 17: Consolidated Results
C O N S O L I D AT E D R E S U LT S SALES CAGR 24% (‘13 - ‘18) EBITDA(2) CAGR 26% (‘13 - ‘18) 1Q18 11,012 +24% 1,426 +8% 1Q19 13,657 1,543 FY17* 42,529 5,858 +7% +9% FY18 45,320 6,368 Sales in 2018 impacted by FX effect from ARS Sales growth would have been 12% NET ORDINARY INCOME NET DEBT / EBITDA
Slide 18: Business Overview Mexico
BUSINESS OV E RV IE W M E XICO 4% 3 % 3% 2 % 3% 2 % 3% 2% 5% 4% 31% 28% 4% 30% 5% 11% 5% 8% UNITS 7% SALES* A D J U S T E D* EBITDA 8% 11% 17% 17% 22% 20% 29% 12 % 78% 22% Corporate Franchises 2467 2,477 2,215 2,346 1,999 2,092 Results 1Q19 FY18 Other** * Quarterly share SSS 1.2% 4.0% figures for sa
Slide 19: Business Overview Europe
BUSINESS OVERVIEW EUROPE 5% 1 % 3% 1 1 % % 4% 3% 4% 5% 8% 24% 8% 35% 25% 12% 9 % UNITS SALES* A D J U S T E D* 9% EBITDA 12% 16 % 17% 17% 24% 21% 17% 17% 64% 36% Corporate Franchises 1,353 Results 1Q19 FY18(Zena) Other** SSS 1.5% 1.1% 549 593 499 Revenues $5,033 $9,862 442 467 * Quarterly share figu
Slide 20: Business Overview South America
BUSINESS OV E RV IE W SOU T H A M E RIC A 1% 3% 2 % 2% 1% 1% 5% 1 % 4% 46% 12 % 48% 8% 16% 47% UNITS SALES * ADJUSTED* EBITDA 37% 37% 29 % 97% 3% Corporate Franchises 631 628 543 Results 1Q19 FY18 481 SSS 13.1% 11.5% 395 Revenues $2,238 $9,996 343 * Quarterly share Adjusted EBITDA $227 $1,403 figure
Slide 21: Business Overview Alsea
BUSINESS OVERVIEW ALSEA % 2% 2% 2 1 3% 5% % 2%1 1 % % 2% 2 % 2% 2 % 34 % 3% 2% 25% 5% 27% 5% 3% 9% 4% 7% 6% A D J U S T E D* UNITS SALES* 8% EBITDA 14% 18% 18% 8% 15 % 26% 76% 24% 16% 16% Corporate Franchises 4,461 3,688 3,195 3,438 2,784 2,954 Results 1Q19 FY18 Other** SSS 2.8% 4.9% * Quarterly sha
Slide 22: Debt Profile
DEBT PROFILE Capital structure 1Q19 1Q18 Debt Maturity 9% 12% 5% 19% 40% 1% 6% - 7% Net Debt / EBITDA 3.6x 2.0x EBITDA / Interest Paid 4.0x 4.9x 10,818 Average cost 9.50% 5,245 Peso 9.35% 3,305 Euro 1.20% 2,000 2,311 1,249 1,649 Debt structure 1Q19 Main banks 371 Bond Debt 26% Bank of America 15% 20
Slide 23: Leverage and Capex
LEVER AGE AND CAPEX 1.0x 2.2x 2.9x 2.3x 2.4x 2.0x 3.4x* 3.8x 2.4x CAPEX (excluding acquisitions) COA 4,341 4,882 4,382 ~4 Bn ~4.5 Bn Net Debt / EBITDA 3,650 3,439 Figures in 2,751 million pesos 2,055 * EBITDA Pro-forma including acquisitions LTM 2012 2013 2014 2015 2016 2017 2018 2019e 2021e Note: A
Slide 24: Guidance
GUIDANCE 2 0 19 Tota l op en ing s 18 Revenues 0- Close to 30% Growth Top Line 200 Growth SSS Mid Single Digit EBITDA 120-130 Mid-teens Growth Corporate EBITDA Growth 60-70 Close to sub- franchises 13% EBITDA margin Capex* Net Debt / EBITDA ~4 Bn 3.8x 1Q 1 9 | AL S E A 24 *Excluding acquisitions.
Slide 25: Investor Information
IN V ESTOR I N F O R M AT I O N Headquarters Alsea, S.A.B. de C.V. Salvador Villaseñor Av. Revolución #1267 – 21st. Floor ri@alsea.com.mx Corporate Tower Phone: +52 (55) 7583-2000 Col. Los Alpes, Del. Alvaro Obregón Zip Code 01040, Mexico City Phone: +52 (55) 7583-2000 The slides of this presentatio
Alsea, S.A.B. de C.V. — Q1 2019 Earnings Presentation on 6ix