Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q4 2018 Earnings Presentation
25 slides from Alsea, S.a.b. De C.v's earnings presentation, 2019
Slide 1: Investor update 4Q18
LAVACA @ Caiias yTapas Domino's: california PF CUANGS
Slide 2: Our presence
our presence 3,688 14 brands 75,127 units employees >450 80% 20% million corporate franchises clients served Mexico Spain Argentina Colombia Chile Uruguay Brazil 2,467 593 265 181 173 5 4 4Q18 | ALSEA 2
Slide 3: Alsea's history
ALSEA‘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 3,688 Launch Business Model Expansion Consolidation 4Q18 | ALSEA 3
Slide 4: Alsea Mexico today
ALSEA MEXICO today 1% 1 % 2% 2 % 4% 28% 5% Stores Corporate Franchises Total 473 286 759 56% 7% Employees 723 723 Sales Share 7% 181 243 424 7% 72 72 19% 14 2 16 17% Vips 25 25 Domino‘s Starbucks 81 14 95 63% Italianni‘s Burguer King 281 5 286 Chili‘s Ebitda Share El Portón 64 64 DIA P.F Chang‘s 3 3
Slide 5: Alsea International today
ALSEA INTERNATIONAL today 2% 2% 3% 3 % 22% Stores Corporate Franchises Total 11% 33% 326 54 380 44% Employees 301 301 Sales Share 242 242 14% 10 10 22% 100 129 229 32% Burguer King 11 8 19 21% Domino‘s Starbucks 4 4 37% Foster‘s Hollywood 32 32 Archies P.F Chang‘s 4 4 Ebitda Share Alsea Other TOTAL
Slide 6: Alsea today
ALSEA today Stores Corporate Franchises Total 1%% % 2% 2 1 1 % 3% 22% 3% 24% 4% 799 340 1,139 4% 1,024 1,024 Sales per 5% Employees 423 243 666 Geography 281 5 286 16% 17% 100 129 229 22% 56% 76 76 17% Domino’s 81 14 95 Mexico Burguer King Spain Vips 64 64 South America Starbucks Italianni‘s 35 35 F
Slide 7: Innovation, consumer, technology
INNOVATION, CONSUMER, TECHNOLOGY Objective: Know your customer Reach: 1st stage - Mexico 35% increase in average ticket My Starbucks More than Rewards 1,350 2 million restaurants on board members WOW is in 6% of Alsea Domino‘s app Mexico Sales more than Close to 2.5 million 3,500,000 downloads regis
Slide 8: Strategy
stra tegy 4Q18 4Q18 | ALSEA 8
Slide 9: Strategic definitions
strategicdefinitions definitions Purpose Ignite people’s spirit We are a determined community committed to excellence and integrity, we maximize synergies to deliver a surprising Value offer to our Guests and to make sure that our Restaurants generate extraordinary results, contributing with happine
Slide 10: Markets: diversified portfolio
MARKETS Diversified Portfolio >450 Actual Market Population GDP USD 3,521 497 5,150 Popular Segments AB C+ C C-, D+ D, E units million billion million clients T served as of Sep 18 LTM Per-Capita Expense | Food Service Industry (Figures in usd) 1,980 Served by the Informal Sector 1,580 750 500 515 3
Slide 11: Growth strategy
GROWTHstrategy strategy Margin Expansions Margin Expansions Organic Growth Acquisitions Operating Business Mix Operating SSS New Brands Leverage Corporate Efficiencies Store Openings Franchises & Sub-franchises SSS Franchised Cost of Sales New Brands Existing Brands Units Sub-franchised Pricing Stra
Slide 12: Mexico strategy
MEXICOstrategy strategy Market Holding Capacity with significant upside Franchises Corporate Total units upside 32% 40-45 40-45 Openings Openings 2019e 2019e 15 - 20-25 2 - 1 - 2 - - 4Q18 | ALSEA 12
Slide 13: International strategy
Internationalsstrategy trategy Franchises Market Holding Capacity with significant upside Corporate Total units upside 40% 55% 80% 45% Spain Argentina Colombia Chile 85-95 85-95 Openings Openings Argentina Chile Colombia Brazil Spain Uruguay 2019e 2019e 10 25-30 - - 45-50 5 4Q18 | ALSEA 13
Slide 14: Delivery distribution centers in Mexico
4 delivery Distribution Centers Distribution Centers in in Mexico Mexico Hermosillo Monterrey 112 stores Sonora, Sinaloa and B.C. 269 Stores Nuevo Leon, Tamaulipas, Durango, Coahuila, Chihuahua, Zacatecas. Cancun 90 stores Quintana Roo, Yucatan, Campeche, Tabasco. COA 1,372 Stores 4Q18 | ALSEA 14
Slide 15: Alsea operations center
ALSEA OPERATIONSCenter Center Total Land ED OPER 74,500 m2 LIZ 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 4Q18 | ALSEA 15
Slide 16: Financials
fi nan4Q18 cials 4Q18 | ALSEA 16
Slide 17: Consolidated results
CONSOLIDATED results results Sales CAGR 24% (‘13 - ‘18) EBITDA CAGR 26% (‘13 - ‘18) 7% 9% 45,320 6,368 42,526 4% 5,858 6% 12,028 1,848 11,616 1,749 4Q17* 4Q18 FY17 FY18 4Q17* 4Q18 FY17 FY18 Net Ordinary Income Net Debt/ EBITDA CAGR 17% (‘13 - ‘18) 46% 3.7x 1,192 2.0 x 14% 815 313 273 Sales, EBITDA a
Slide 18: Business overview Mexico
BUSINESSOOverview Mexico verview Mexico 3% 2 % 4% 5% 2 % 3% 5% 5% 4 % 31% 27% 5% 27% 5% 11 % 6 % * Adjusted * 7% Units 7% Sales EB I T DA 7% 11% 17 % 17% 22% 23% 29% 15 % CAGR 9% 2,467 2,215 2,346 Results 4Q18 12mDec18 1,999 2,092 Other** 1,571 * Quarterly share SSS 3.5% 4.0% figures for sales and A
Slide 19: Business overview International
BUSINESS Overview Inernational Overview International 2% 1 1 1 % % % 2% 2 2 1 3% % % % 31% 30% 18 % 31% 19% 16% Adjusted Units Sales * EB I T DA * 19% 21% 20% 25 % 28% 25% CAGR 34% 1,221 1,092 980 Results 4Q18 12mDec18 785 836 SSS 7.9% 6.2% Other** Revenues $5,096 $19,858 287 * Quarterly share Adjus
Slide 20: Business overview Alsea
BUSINESS Overview Alsea Overview Alsea 3% 2% 2 1 % % 2% 1 2 2% 2 % % % 2% 3% 4% 3 % 28 % 4% 21% 5% 27% 6% 5% Ajusted 8% 6% 8% Units Sales * 9 % EB I T DA * 13% 18% 22% 13% 17 % 31% 17% 13% CAGR 15% 3,688 3,195 3,438 2,784 2,954 Results 4Q18 12mDec18 1,862 Other** SSS 5.4% 4.9% * Quarterly share figu
Slide 21: Debt profile
DEBTProfile Capital structure 4Q18 4Q17 Debt Maturity 10% 13% 5% 19% 38% 1% 6% - 8% Net Debt / EBITDA 3.4x 2.0x EBITDA / Interest Paid 4.4x 4.9x 9,691 Average cost 9.43% 3,234 4,842 Peso 9.24% Euro 1.20% 2,587 1,237 2,000 1,649 Debt structure 4Q18 Main banks 371 Bond Debt 27% Bancomext 7% 2019 2020
Slide 22: Leverage and capex
LEVERAGEand and CAPEX CAPEX 1.0x 2.2x 2.9x 2.3x 2.4x 2.0x 3.4x* 3.6x CAPEX COA Net Debt / EBITDA 4,341 4,882 4,382 4 Bn-4.5 Bn Figures in million pesos 3,650 3,439 2,751 2,055 * EBITDA Pro-forma including acquisitions LTM 2012 2013 2014 2015 2016 2017 2018 2019e Note: Alsea has managed succesfully c
Slide 23: Guidance 2019
GUIDANCE2019 2019 Total ope nin gs 1 85 Revenues Low 30´s Growth -2 Top Line 10 Growth SSS Mid Single Digit E B I T DA 125-140 Mid 20´s Growth Corporate EBITDA 60-70 Growth sub- franchises Slightly above >13% E B I T D A margin Capex* Net Debt / EB I T DA 4 Bn - 4.5 Bn 3.6x *Excluding acquisitions..
Slide 24: Five year goals
five year goals goals 2019e 2023e Sales Low 30´s Growth CAGR* - 15% EBITDA Mid 20´s Growth CAGR* - 15% EBITDA margin expansion > 13% Close to 15% Dividends $0.40 pesos per share Acum. $4 pesos per share Adjusted EPS* MXN $1.40 CAGR* >25% ROIC 10% Mid teens ROE 11% Mid to high teens *5 - Year Compoun
Slide 25: Investor information
INVESTORinformation 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 presentation, contains
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