Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q3 2020 Earnings Presentation
28 slides from Alsea, S.a.b. De C.v's earnings presentation, 2020
Slide 1: Update
update 20
Slide 2: Our Presence
OUR PRE SENCE 79 285 32 3 5 1 227 31 29 76 105 38 408 UNITS UNITS Mexico Spain 2,219 1,058 Argentina Portugal 249 25 Colombia France 1 169 188 Chile Belgium 1,537 198 31 Uruguay Netherlands 9 86 4 Luxembourg 14 1,223 124 11 COUNTRIES 18 BRANDS 4,236 RESTAURANTS ~65,000 EMPLOYEES +311 MILLION CLIENTS
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 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2018 2019 2020 units 1 500 1,000 1,862 2,714 3,195 4,310 units 1 500 1,000 1,862 2,714 3,195 4,236 Launch Business Model Expansion Consolida
Slide 4: Alsea Today
ALSEA T O D AYStores Corporate Franchises Total 12% 1,284 253 1,537 807 416 1,223 408 408 SALES 336 24 390 PER 102 125 227 GEOGRAPHY 47% 88 36 124 41% 64 15 79 76 76 32 32 31 31 9% 16 22 38 29 29 50 % 14 14 ADJUSTED EBITDA 5 5 PER 3 3 GEOGRAPHY 1 1 41 % 1 1 Mexico Europe TOTAL 3,335 901 4,236 South
Slide 5: Innovation, Consumer, Technology
I N N O V AT I O N , C O N S U M E R , TECHNOLOGY 17% increase IS IN IN AVERAGE 5% of LINKED TO TICKET Alsea MEXICO SALES WOW REWARDS APP +650,000 ACTIVE MEMBERS mobile web call center 3Q 2 0 | AL SE A 5
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 • 38.58% redemption • Smart targeting according to customers´needs and preferences • Evolution to an ecosystem of benefits and +2.5 million 1.2 million omnichannel DOMINO´S APP DOWNLOADS 2 million
Slide 7: Strategy
strategy 20 3Q 2 0 | AL SE A 7
Slide 8: Strategic Definitions
STRATEGIC DEFINITIONS Purpose Ignite people’s spirit. Our Business We focus on the operation of restaurant chains, both corporate owned and franchisees and related business models that meet the food needs of customers inside and outside of their homes. Value We are a company of people and for the pe
Slide 9: Diversified Portfolio
DIVERSIFIED Actual Market 4,236units Population +395 GDP USD 8,360 +311 PORTFOLIO million billion million clients Population Segments Dayparts AB C+ C C-, D+ D, E Morning Lunch Evening Served Served by the Sector Sector the Informal by Informal 3Q 2 0 | AL SE 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 Le v erage Corporate Effi ciencies Store Openings New Brands + Franchises & Sub-franchises Existing Brands SSS Units + Franchised Sub-franchised + Cost of Sales Pricing Strateg
Slide 11: Mexico Strategy
M E X ICO S T R AT E G Y Market Holding Capacity with significant upside Franchises Corporate Market Hol Total upside +1,685 stores 81% 12% 1% 28% 69% 39% 66% 62% 57% 46% 30% 33% 3Q2 0 | A L SE A 11
Slide 12: Europe Strategy
O P EE U R O P E AT ESGTYR AT E G Y T Franchises Franchises Market g Capacity significant with Holding with significant upside Capacityupside Corporate Market Holding Corporate MaC Total upside +1,300 Total upside +1,300 39% 39% 7% 9% 14% 9% 14% 43% 11% 51% 11% 51% 29% 29% 38% 38% 35% 29% 35% 29% 11
Slide 13: South America Strategy
O UAT SMSH OEOUR AUTIM TCHEAOA SH AM RU MEA IC T HERRIACIM CAA ERICA ERGAT SYSTT RR E AT YSETEGRGYAT GAT Y EGY Franchises Franchises Franchises Franchises Fra acity with significant Market Market t Holding Holding Capacity significant Holdingupside Capacity withCapacity Market with with Holding sign
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 130 stores Monterrey • Hybrid model of distribution 266 Stores (mix between own and third party resou
Slide 15: COA Alsea Operation Center
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 Fresh dough production Rack position Commissary 10,004 1,761 5,463 Warehouse Refrigerated Frozen 3Q 2 0 | A L S
Slide 16: Financials
financials financials 20 19 2Q 2 0 | A L SE 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 20.3% (‘14 - ‘19) EBITDA*(2)CAGR 18.5% (‘14 - ‘19) 3Q19 14,336 (31.4)% 1,915 (77.3)% 3Q20 9,883 434 FY18 45,320 6,368 +26.8% +20.1% FY19 57,444 7,649 NET ORDINARY INCOME * NET DEBT / EBITDA (463.8)% 3Q19 267 3.3 x Excluding effect of IFRS 16, a 3Q20 (9
Slide 18: Business Overview Mexico
BUSINESS OV E RV IE W M E XICO ADJUSTED 47% 60% 2% 1% EBITDA* 2% 2% 4% 1% 4% 3% 8% 5% 8% 35% 34% 5% 6% 1% 1% 2% 8% -1% UNITS SALES* -5% 13% -18% 14% 33% 84% 16% 25% Corporate Franchises 2,467 2,272 2,219 2,215 2,346 1,999 2,092 Results 3Q20 FY19 93% Stores SSS (29.6%) 3.4% open Revenues $4,569 $27,2
Slide 19: Business Overview Europe
BUSINESS OVERVIEW EUROPE ADJUSTED 11 1 % % % EBITDA* 30% 3% 1 1 7% % % 4% 27% 29 % 8% 34% 9% 15% 17% 9% 1% 3% 9% UNITS SALES* 16 % -1% -1% 16% 19% 24% 17% 63% 37% Corporate Franchises 1,398 1,392 Results 3Q20 FY19(Zena) 92% Stores Other** SSS (29.8)% 2.0% 549 593 open 499 Revenues $4,060 $21,206 442
Slide 20: Business Overview South America
BUSINESS OV E RV IE W SOU T H A M E RIC A ADJUSTED 50% % % EBITDA* 4% 1 1 2% 2 1% 38% % 4% 49 % 41% 19% 17% 21 % 4% UNITS SALES* -4% -4% -3% 29% 28% 96% 4% Corporate Franchises 625 628 640 543 481 Results 3Q20 FY19 395 343 SSS (36.5)% 14.6% 77% Stores open Revenues $1,203 $9,021 Adjusted EBITDA 110
Slide 21: Business Overview Alsea
BUSINESS OVERVIEW ALSEA ADJUSTED EBITDA* 38% 35% 2% 2 1 1 % % % 2% 2 1 1 % % % 2% 3% 3 36% % 3% 3% 27% 5% 13 % 7% 4% 4% 5% 9% 1% 1% 1% -2% 0% 0% 10% UNITS SALES* 10% 14% 29% 79% 21% 27 % Corporate Franchises 4,236 4,310 Other** 3,688 3,195 3,438 Results 3Q20 FY19 2,784 2,954 90% Stores open SSS (30.
Slide 22: Debt Profile
DEBT PROFILE Capital structure 3Q20 3Q19 Debt Maturity 1% 14% 23% 35% 6% 7% 8% 6% Net Debt / EBITDA 11.6x 3.3x $11,688 EBITDA / Interest Paid 1.1x 3.7x Average cost 7.11% $7,634 Peso 7.41% $4,791 $2,650 Euro 1.94% $1,986 $2,000 $2,338 $270 Debt structure 3Q20 Main banks Bond Debt 24% Scotiabank 11%
Slide 23: Leverage and Capex
LEVER AGE AND CAPEX 1.0x 2.2x 2.9x 2.3x 2.4x 2.0x 3.4x* 2.9x - CAPEX (excluding acquisitions) COA 4,341 4,882 4,382 3.8 Bn 1.7 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 2019 2020e Note: Alsea
Slide 24: Ensure the Safety, Health and Well-Being of Our Customers, Employees and Communities
Ensure the Safety, Health and Well-Being of Our Customers, Employees and Communities Our Customers Our Employees Our Communities Our commitment is that we will implement the Full support for the health and safety of our Dedicated to serving our communities highest standard of sanitary and hygiene em
Slide 25: Continued Focus on Executing our Contingency Plan Through Short-term Revenue Initiatives
Continued Focus on Executing our Contingency Plan Through Short-term Revenue Initiatives Delivery and technology at the core of Alsea's business provide flexibility to face the current situatione In-Store Delivery Aggregators Open stores in all Leveraging Alsea's Multi-partner strategy, markets foll
Slide 26: Contingency Plan Execution
Contingency Plan Execution 1 Personnel . Labor support initiatives supported by governments and unions (ERTE and "4x3") Governments support programs: Spain, France, Argentina, Chile, Colombia, the Netherlands . . Lean and flexible corporate team with full capabilities to face new challenges 2 G&A Sa
Slide 27: Contingency Plan Execution
Contingency Plan Execution 1 Contactless experience and implementation of safety protocols in all units 2 Alignment of employee trainings to post-Covid-19 requirements Reinforce Brand alternative distribution channels while adapting our offerings Owners 3 (technology, payments, packaging, menus, etc
Slide 28: 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. — Q3 2020 Earnings Presentation on 6ix