Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q4 2017 Earnings Presentation
26 slides from Alsea, S.a.b. De C.v's earnings presentation, 2018
Slide 1: Ge. Gieske Bl prcuncs Ce ioe Archie's RAGA |
Ge. Gieske Bl prcuncs Ce ioe Archie's RAGA | | A
Slide 2: Our Presence
Our Presence 74- Brands 9A Corporate un its ——___.__ IM ye Franchises aon = ¥ at | ® wf FT 2346 $49 285 7764 750 4 Mexico Spain Argentina Colombia Chile Brazil 4Q17 | Alsea 2
Slide 3: Alsea's History
Alsea’s ttitory D. ALSEA e Te £ DM @ @ sow e Fill @z® rig ® Fr 2 Bon HH os a “* 1 500 1990 1992 1995 1999 2002 2006 2007 2008 #2009 2012 2013 2014 2016 2017 Launch Business Moolel 1,000 1,862 —_s. 2,714.5. 3,195- 3,438 | Expansion Consolidation 4Q17 | Alsea 3
Slide 4: Alsea Mexico - Today
Alsea Mexico - Toolay Stores Corporate Franchises Total 266 701 645 452 64 [ol Vips fl El Porton @ Domino's Bm DA Starbucks (1) PF. CHANG'S @ Italianni's {© California Pizza Kitchen [0 Burger King Mj Alsea @ Chili's HB The Cheesecake Factory EL PortoN 67 67 CR 3 3 Total 533 4Q@17 | Alsea 4
Slide 5: Alsea International - Today
Alsea 9uternational - Today Stores Corporate Franchises Total Alsea Quternational 44 314 256 & 224 Precis oes A 10 @ 20 B® South America Calas: ™ Burger King (@ Domino's [™@ Starbucks [1 Foster's Hollywood ® Archie's fm PF. CHANG'S @ Alsea ™@ Other LAVACA Archie's Total 189 4Q1F | Alsea 5
Slide 6: Alsea Total Stores
Alcea Stores Corporate Franchises Total — Tolan, LAVACA Total 310 705 1,015 901 we 2 ee Mexico IM Vornino's 3 {© South America 1) Burger King @ Spain 1 Vips 9 17 ms @ italianni's : t I Foster's Hollywood 2,716 722 3,438 (@ Chili's I El Portén [Supply I PF. CHANG'S () Alsea [Ml Archie's (9) Califomia
Slide 7: Innovation - Consumer - Technology
lnuovation — Consumer — Technology, Multi-brand Rewards program Apps My Starbuchs Rewards around TO Million members Gos Description / Objective: kn t : ae customer aw 7350 1st stage - Mexico QD 47,000,000 "er ii A ,pistered score a Gh of Alsea Mexico sates 4Q17 | Alsea 7
Slide 8: 4@17 | Alsea
4@17 | Alsea 8
Slide 9: Value proposition and brands
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 happiness doses even in the smallest details, to ful
Slide 10: Markets
Markets Actual Market Population GP UD G27 ae ae Per-Capita Expense | Food Service Industry (Figures in usd) Diversified Portfolio Popular Segments A/B C+ nN 4@17 | Alsea 10
Slide 11: Growth and margin expansion
Growth a Margin expansions ™S « SSS « New Brands « SSS * Corporate * Cost of Sales » Store Openings « Franchises & « Units * Franchised * Pricing « New Brands Sub-franchises ° Sub-franchised Strategy « New Markets « Existing Brands ° Brands « Expenses « New Markets * Segments « Synergies « Geographi
Slide 12: Mexico Strategy
Mexico Strategy M™@ Franchises Market Holding Capacity with significant upside ll Corporate Total units upside 32% 100' BR a) be Grroms im Geek ct ponrdn (ips) $ € ® fo oe QD KS crore @ 2-5 12-15 1 4Q17 | Alsea 12
Slide 13: Market Holding Capacity with significant upside
Market Holding Capacity with significant upside Total units upside 40% 55% 80% 45% 4Q17 | Alsea 13
Slide 14: Monterrey
Monterrey ~ 264 sores p " xk Nuevo Le6én, Tamaulipas, Durango, Coahuila, Chihuahua, Zacatecas. Hermosillo 770 stores Sonora, Sinaloa and B.C. - Grane LE storec COA ad Quintana Roo, tan, , Z S47» res bari —— Note: Does not include the distribution centers for Burger King (448 stores). 4Q17 | Alsea 14
Slide 15: Alsea Operations Center (COA)
Alcea Operations Center (COA) Centralized operation in Mexico City and surroundings 74,500 ws with 46,000 m7? built 450 docks 77,228 Rack position 70,004 at 1 segs $468 Warehouse Refrigerated 4Q17 | Alsea 15
Slide 16: 4Q17 | Alsea 16
4Q17 | Alsea 16
Slide 17: Consolidated Results
Consolidated Results Gales EBITDA CAGR 28% ('13-'17) CAGR 33% ('13-17) » 2,358 ll 4Q16 4Q17 25% 5,155 4 6 FY17 Net Debt / EB/TDA » | 4Q16 4Q17 | Alsea 17
Slide 18: Units
Units Sales* 1 Vips Adjusted EBITDA* @ Starbucks ®@ Domino's (1) Burger King @ Chili's “Quarterly share figures for sales and Adjusted EBITDA “PF. Chang's, The Cheesecake Factory, California (i Italianni's 1 DA ™@ El Porton ) Other** Results 4Q17. 12m Dec17 sss 3.9% 3.1% Revenues $6,382 $23,676 Adju
Slide 19: Business Overview
Busines Overview engined zg?tt Units Results Adjusted EBITDA* 12m Dec17 SSS Revenues Adjusted EBITDA Margin 11.4% $18,853 $3,383 17.9% Adjusted EBITDA and Revenues figures in million pesos © Burger King © P-F. Chang’s I Starbucks @ LaVaca I Foster’s Hollywood {™ Cafas y tapas 1 Domino's © Archie’s “
Slide 20: Business Overview - Alsea
Business Overview — Alsea agen 88 Units Sales* Results 4Q17. 12m Dec17 sss 6.8% 6.6% Revenues $11,616 $42,529 EBITDA* $2,358 $6,466 Margin* 20.3% 15.2% EBITDA and Revenues figures in million pesos *Including the benefit from the sale of the minority stake of Grupo Axo Adjusted EBITDA* Total Sfpres i
Slide 21: Debt Profile
Debt Profile “sedbmsthen 8.44% 8.42% 1.89% Average cost Peso: Euro: Capital structure 4Q17 4Q16 Net Debt/ EBITDA 2.0x 2.4x EBITDA / 49x 5.8x Interest Paid M% 23% 33% 3% M% 1% 4863 Main banks Scotiabank Bank of Tokyo Bank of America 7% Debt structure 4Q17 Bond Debt 47% Bank Debt 53% Duration 4.1 year
Slide 22: Leverage & CAPEX
Leverage & CAPEX 2.15x 0.96x 2.93x ov 3,650 2014 2015 2016 | 2012 2013 Note: Alsea has managed to succesfully complete the acquisition of new brands in its portfolio, improving its leverage level over time. Figures in million pesos 4Q17 | Alsea 22
Slide 23: Guidance
Setweew = €B/TDA roun 240 —270 ane | oo — ‘Total openings: aN | Double Digit 790-20, SO-@D _ . ‘corporate ‘sub-franchisees ~4-4 5bn Ay Revennes - Mid to High Low to Mid 2.2x-—2.4¢ Single Digit | Double Digit Growth “Net debt/EBITDA’ 4@1F | Alsea 23
Slide 24: Five Year Goals
Five Year Goals a= Sales EBITDA EBITDA margin expansion Dividends Adjusted EPS* ROIC *5 - Year Compound Annual Growth Rate 4Q17 | Alsea 24
Slide 25: Investor Information
— guvastor oxfermation — SERRE Alsea, S.A.B. de C.V. © Salvador Villasenor / IR Av. Revolucién #1267 — 21st. Floor ri@alsea.com.mx Corporate Tower Al Phone: +52 (55) 7583-2000 Col. Los Alpes, Del. Alvaro Obregon SCa Zip Code 01040, Mexico City Phone: +52 (55) 7583-2000 The slides of this presentatio
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Alsea, S.A.B. de C.V. — Q4 2017 Earnings Presentation on 6ix