24 slides from Alsea, S.a.b. De C.v's investor presentation, Mar 15, 2016
Slide 1: @Biecake @) :
@Biecake @) : Pfactory, PCAN LAVACA
Slide 2: Our presence 3Q16
2 Our presence 3Q16 22% 14 Franchises Brands 3,093 units 78% Corporate Mexico Argentina Colombia Chile Brazil Spain 2,140 197 140 129 4 483 +60,000 employees +399 millions clients served* *3Q16 LTM
Slide 3: Alsea Mexico - Today
3 Alsea Mexico - Today 3Q16 Stores Corporate Franchises Alsea Mexico Employees 398 234 28 565 16 205 243 18 54 9 57% 6 20 2 Sales Share 6 22 6 63 12 3 248 5 3 % 67 2 69% EBITDA 2 2 ShareShare 1 Total 1,644 496
Slide 4: Alsea International - Today
4 Alsea International - Today 3Q16 Stores Corporate Franchises Alsea International Employees 220 36 South America Spain 209 24% 202 35 9 19% 27 85 126 14 43% Sales Share 11 5 10 5 9 13% 3 1 18% % *Others 3 41 2 31% Total 781 172 EBITDA ShareShare
Slide 5: Alsea - Today
5 Alsea - Today 3Q16 Stores Corporate Franchises 618 270 21 Sales per geography Employees 774 18 407 243 Mexico South America Spain 18 248 5 16 85 126 5 54 63 12 4 67 19% 4 31 4 41 % 3 20 2 2 2 24% 57% 2 5 10 9 1 1 *Others 2 Total 2,425 668
Slide 6: Acquisitions Update
6 Acquisitions Update 3Q16 • New menu: more attractive • New image: Product, service, layout & culture • Improved SSS • Re-launch of the brand •Positive SSS trend •40 units remodeled - 2015 •40 units to be remodeled - 2016 Currently Currently •Development plan on hold - 2017 Currently 1 2 3 1 2 3 Tr
Slide 7: Grupo Zena Acquisition
7 Grupo Zena Acquisition 3Q16 Estimates at acquisition vs. Real 331 43 Sales EBITDA 289 264 32 35 Before 1st Year Dec-15 Before 1st Year Dec-15 Acquisition Target LTM Acquisition Target LTM Acquisition Multiple 8.1x Dec-15LT M 6.2x Free Cash Flow Dec-15LTM€M€ 14m Dec-15Net Debt/ EBITDA 2.2x Figures
Slide 8: Innovation – Consumer - Technology
8 Innovation – Consumer - Tecnology 3Q16 Multi-brand Apps Rewards program Description / Objective: know your customer Reach: 1st stage - Mexico How does it work: Gaining and Redeeming points 270,000 registered users Aproximately 30% Increase in average ticket +1,200 Restaurants on board
Slide 9: Strategy
Strategy 3Q16
Slide 10: Alsea Strategic Definitions
10 Alsea Strategic Definitions 3Q16 To be the best restaurant operator, ensuring a great experience with each customer with PURPOSE the best portfolio and the best profitability; Stiring people’s spirits We are a determined community committed to excellence and integrity, we maximize synergies VALUE
Slide 11: Business Model
11 Business Model 3Q16 Operations Marketing Human Real Estate Strategic Resources Planning Support Information Corporate Internal Finance Supply Chain Technology Responsability Audit Brands Brands Synergy People Others Competitive Advantages . Diversified Portfolio . Leading GLobal Brands . Shared S
Slide 12: Markets
12 Markets 3Q16 Diversified Portfolio Actual Market Population GDP USD +399 Popular Segments A/B C+ C C-/D+ D/E 3,093 478 5,118 Million Clients served as of units million billion Sep 16 LTM Potencial Per-Capita expense expansion (Figures in usd) Served by the informal sector 324 326 488 512 740 1,97
Slide 13: Mexico Strategy
13 Mexico Strategy 3Q16 Market Holding Capacity Corporate Franchises 85 - 95 Openings for 2016 Finance 15 - 20 - 50 - 55 4 1 1 5-8 1 2 5-7
Slide 14: International Strategy
14 International Strategy 3Q16 Market Holding Capacity Corporate Franchises Col. Arg. Chl Col. Arg. Chl Col. Arg. Chl Col. Bra 70 - 80 Openings for 2016 Annual Growth by Country Argentina Chile Colombia Brazil Spain 2016e 15 - 20 10 - 15 8 - 10 1-2 25 - 30
Slide 15: Growth Strategy
15 Growth Strategy 3Q16 Organic Growth Acquisitions + SSS + Store Openings + New + Franchisees & Brands Sub franchisees GROWTH + New + New + Existing + New Brands Markets Brands Markets Operating Business Mix Operating Leverage Efficiencies Corporate, Franchised, Cost of Sales MARGIN Sub-franchised,
Slide 16: Financials
Financials 3Q16
Slide 17: Consolidated Results
17 Consolidated Results 3Q16 Sales EBITDA 17% 42% 32,288 22% 54% 4,302 9,602 1,328 8,224 22,787 1,087 2,802 CAGR 29% CAGR 34% (10 - 15) (10 - 15) 3Q15 3Q16 12m - Dec14 12m - Dec15 3Q15 3Q16 12m - Dec14 12m - Dec15 Net Ordinary Income * Net Debt 12,217 10% 82% 1,137 277 11,754 252 CAGR 48% 624 (10 -
Slide 18: Business Overview - Mexico
18 Business Overview - Mexico 3Q16 % Adjusted 3Q16* Units Sales EBITDA Adjusted Units Sales 26 26 29 EBITDA 12 23 23 30 15 13 21 9 3 RESULTS 3Q16 12m Dec15 Total Stores 2 6 7 2,140 SSS 6.4% 4.4% CAGR 15% 2,092 4 6 7 1,999 Revenues $5,516 $19,896 1,571 - 6 12 1,380 Adjusted EBITDA $1,339 $4,674 1,075
Slide 19: Business Overview - International
19 Business Overview - International 3Q16 % Adjusted Units Sales EBITDA Adjusted 3Q16* Units Sales EBITDA 21 39 33 22 18 24 Total Stores 22 18 24 953 836 CAGR 38% 785 27 19 18 RESULTS 3Q16 12m Dec15 1 2 1 SSS 23.6% 21.5% 1 1 -1 287 Revenues $4,086 $12,392 208 169 2 1 0 172 Adjusted EBITDA $707 $2,10
Slide 20: Business Overview - Alsea
20 Business Overview - Alsea 3Q16 % Adjusted 3Q16* Units Sales EBITDA 25 23 27 Adjusted Units Sales EBITDA 21 22 13 29 16 14 8 13 14 7 7 9 Total Stores 3,093 2 4 5 CAGR 20% 2,954 2 3 5 2,784 RESULTS 3Q16 12m Dec15 - 4 8 SSS 9.0% 9.3% 1,862 1,421 2 2 2 Revenues $9,602 $32,288 1,283 1,206 EBITDA $1,32
Slide 21: Debt Profile
21 Debt Profile 3Q16 Debt maturity 4% 6% 7% 20% 36% 20% 7% Capital structure 3Q16 3Q15 Avarage cost 4,912 Net Debt / EBITDA 2.5x 2.9x peso: 6.3% EBITDA / Interest Paid 6.3x 5.8x euro: 2.0% 2,687 2,639 Debt structure 3Q16 Main banks 982 1,000 Bond Debt 29% Bank of America 21% 852 Scotiabank 15% 464 B
Slide 22: Guidance 2016
22 Guidance 2016 3Q16 Between Mid to high Mid teens 155 -175 Single Digit Growth TOP LINE GROWTH openings SSS Revenues 5bn pesos EBITDA margin expansion EBITDA ~60 to 70bps GROWTH 3.2 - 3.3bn < 2.5x CAPEX* Net debt / EBITDA * Excluding acquisitions
Slide 23: 2016e EBITDA margin expansion
23 3Q16 2016e 2020e EBITDA margin 60 - 70 expansion FUTURE TARGETS $0.77 14 *Without considering any effects from the Put / Call Options.
Slide 24: Investor Information
HEADQUARTERS ALSEA S.A.B. DE C.V. Av. Paseo de la Reforma #222 – 3rd. Floor Tower 1 Corporativo Col. Juárez, Del. Cuauhtémoc Zip Code 06600, México D.F Phone: +52 (55) 5241-7100 INVESTOR INFORMATION Diego Gaxiola Cuevas / CFO ri@alsea.com.mx Phone: +52 (55) 5241-7151 The slides of this presentation,