Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Investor Presentation (January 2016)
24 slides from Alsea, S.a.b. De C.v's investor presentation, Jan 15, 2016
Slide 1: S CHtatiannis
S CHtatiannis ~ Domino's: a PF.CHANGS. 5 ba @ CafiasyTapas @G Bs LAVACA
Slide 2: Our presence
Our presence 78% Corporate 14 Brands 22% 3,002 units Franchisees 2,090 468 186 136 118 4 Mexico Spain Argentina Colombia Chile Brazil +60,000 employees +328 millions annual clients 1
Slide 3: Alsea Mexico - Today
Alsea Mexico-Today % Stores 29 Corporate Franchises Alsea Mexico Employees 379 239 16 526 17 207 246 60% 9 53 7 20 2 Sales Share 6 22 6 62 11 2 245 5 71% 3 71 2 2 3 EBITDA Share 2 TOTAL 1,587 503 1
Slide 4: Alsea International - Today
Alsea International - Today Stores Corporate Franchises Alsea International Employees 204 30 37 18% 190 28 199 40% 21% 15 8 12 Sales Share 85 125 5% 3 6 11 11 29% 2 24% 2 Others * 2 41 EBITDA Share 3 TOTAL 667 746 170 166 South America Spain *La Vaca Argentina, Cañas y Tapas, Il Tempietto and Supply
Slide 5: Recent Acquisitions Updates
Recent Acquisitions Updates •New menu: more attractive •Positive SSS trend •Improved SSS •40 remodeled units -2015 •Re-launch of the brand •Development plan on hold Currently Currently 1 2 3 1 2 3 Transition & Brand Improving Adjusting Growth Evolution Business Integration Analysis Operation Strateg
Slide 6: Grupo Zena Acquisition
Grupo Zena Acquisition Estimates at acquisition vs. Real 331 EBITDA 43 Sales 289 264 32 35 Before 1st Year Dec-15 Before 1st Year Dec-15 Acquisition Target LTM Acquisition Target LTM Acquisition Multiple i 8.1x Dec-15 LTM 6.2x Free Cash Flow Dec-15 LTM € 14m Dec-15 Net Debt / EBITDA 2.2x 5 Figures i
Slide 7: Multi-brand rewards program
Innovation - Consumer - Technology APPS Multi-brand rewards program Description / Objective: know your customer Reach: 1st stage - Mexico How does it work: Gaining and Redeeming points 6
Slide 8: Strategy
Strategy
Slide 9: Alsea Strategic Definitions
Alsea Strategic Definitions To be the best restaurant operator, ensuring a great experience with each PURPOSE customer with the best portfolio and the best profitability Customer First Respect and loyalty Orientation to results Personal excellence OUR VALUES with our partners and and commitment with
Slide 10: Business Model
Business Model Human Real Estate Operations Marketing SUPPORT Resources Information Social Finance Supply Chain Technology Responsibility BRANDS Brands Business Model People Others • Diversified Portfolio • Shared Services • Market Experience • Access to Technology • Leading Global Brands • Cross Br
Slide 11: Our Markets
Our Markets Actual market Population GDP USD +328 Diversified Portfolio 3,002 478 5,118 million clients served as of POPULAR units million billion Dec 15 LTM A/B C+ C C-/D+ D/E SEGMENTS Potencial Per-capita expense expansion* (figures in usd) Served by the informal sector 324 326 488 512 740 1,979 1
Slide 12: Mexico Strategy
Mexico Strategy MARKET HOLDING CAPACITY Corporate Franchises 85 - 95 OPENINGS FOR 2016 2016e 15 - 20 - 50 - 55 4 1 1 5-8 1 2 5-7 11
Slide 13: International Strategy
International Strategy Corporate MARKET HOLDING CAPACITY Franchises Spain Southamerica Col. Arg. Chl. Col. Arg. Chl. Col. Arg. Chl. Col. Bra. 70 - 80 OPENINGS FOR 2016 Annual Growth by Country 2016e 15-20 10-15 8-10 1-2 25-30 12
Slide 14: Growth Strategy
Growth Strategy ORGANIC GROWTH + ACQUISITIONS + SSS + Store Openings New + + Brands Franchisees & Sub-franchisees GROWTH New New Existing New + Brands + Markets + Brands + Markets OPERATING BUSINESS MIX OPERATING LEVERAGE EFFICIENCIES MARGIN SSS + Units + Corporate, Franchised, Sub-franchised, + Cos
Slide 15: Financials
Financials
Slide 16: Consolidated Results
Consolidated Results SALES 16% 42% 32,288 EBITDA 22% 1,035 54% 4,302 8,535 7,344 22,787 850 2,802 CAGR 29% CAGR 34% (10-15) (10-15) 1Q15 1Q16 12m- Dec14 12m- Dec15 1Q15 1Q16 12m- Dec14 12m- Dec15 NET ORDINARY INCOME * NET DEBT 70% 194 82% 11,358 1,137 11,037 CAGR 48% 115 624 (10-15) 1Q15 1Q16 12m- D
Slide 17: Business Overview – Mexico
Business Overview – Mexico Adjusted 1Q16 Units Sales EBITDA % % % UNITS SALES Adjusted EBITDA 25 26 28 12 23 22 30 14 13 Total Stores CAGR 22 8 2 15% 2,092 RESULTS 1Q16 12 M Dec/15 1,999 3 6 7 SSS 6.2% 4.4% 1,380 1,571 Revenues $5,155 $19,896 1,037 1,075 3 6 6 Adjusted EBITDA $1,164 $4,674 - 6 11 Ma
Slide 18: Business Overview – International
Business Overview – International Adjusted 1Q16 Units Sales EBITDA % % % UNITS SALES Adjusted EBITDA 22 36 23 21 16 1 9 23 20 30 836 26 22 24 785 Total Stores CAGR 1 2 1 RESULTS 1Q16 12 Mo. Dec/15 38% SSS 16.6% 21.5% 1 1 -1 Revenues $3,380 $12,392 2 1 1 287 Adjusted EBITDA $557 $2,103 208 0 0.4 0.2
Slide 19: Business Overview – Alsea
Adjusted 1Q16 Units Sales EBITDA Business Overview – Alsea % % % 24 22 25 22 19 9 UNITS SALES Adjusted EBITDA 28 18 16 8 14 15 7 8 10 Total Stores CAGR 2 4 5 20% 2,784 2,954 2 4 4 RESULTS 1Q16 12 Mo. Dec/15 SSS 10.1% 9.3% 1,862 - 1 7 1,421 Revenues $8,535 $32,288 1,206 1,283 2 3 2 Adjusted EBITDA $1
Slide 20: Debt Profile
Debt Profile Debt maturity Capital structure 6% 8% 24% 19% 32% 3% 8% 1 Q16 1 Q15 Average cost 4,033 Net Debt/EBITDA 2.5x 3.0x 2,976 peso: 5.0% 2,391 EBITDA/Interest Paid 6.4x 5.8x euro: 2.0% 703 938 1,000 400 Debt structure 1 Q16 Main banks Scotiabank Bond Debt 52% 18% 2016 2017 2018 2019 2020 2021
Slide 21: Store Economics Avg. LTM
Store Economics Avg. LTM Average Investment (000´s USD) Annual Revenues / Investment 1,400 2.5 2 1,000 1.5 600 1 0.5 200 (1) EBITDA Margin - Store Level ROI - Store Level 35 60 50 25 40 30 15 20 5 10 20 Figures as of March 2016 . Considers an exchange rate of $17.90 pesos / (1) ROI = EBITDA at store
Slide 22: Guidance 2016
Guidance 2016 Between Mid to High Mid teens Top line 155-175 Single Digit = Growth growth openings SSS Revenues EBITDA 5bn pesos EBITDA margin expansion growth ~20 to 30bps 3.0-3.2 bn < 2.5x CAPEX* Net debt /EBITDA * Excluding acquisitions 21
Slide 23: Five Year Goals
Five Year Goals 2016e 2020e SALES Mid-teens CAGR > 15% EBITDA High-teens CAGR = High-teens EBITDA margin expansion 20 - 30 bps > 15% FUTURE TARGETS Dividends $ 0.5 pesos per share Acum > $ 5 pesos per share Adjusted EPS * $ 1.50 CAGR > 25% ROIC ROIC > WACC > 20% ROE > 12% > 20% 22 *Without consideri
Slide 24: Investor Information
HEADQUARTERS ALSEA S.A.B. DE C.V. INVESTOR INFORMATION Av. Paseo de la Reforma #222 – 3rd. Floor Diego Gaxiola Cuevas / CFO Tower 1 Corporativo ri@alsea.com.mx Col. Juárez, Del. Cuauhtémoc Phone: +52 (55) 5241-7151 Zip Code 06600, México D.F Phone: +52 (55) 5241-7100 The slides of this presentation,
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