Smu Sa · BCS:SMU

Smu Sa — Q4 2017 Earnings Presentation

16 slides from Smu Sa's earnings presentation, March 2018

  1. Slide 1: Earnings Presentation: Fourth Quarter 2017

    EARNINGS PRESENTATION: FOURTH QUARTER 2017 MARCH 2018

  2. Slide 2: Caution Regarding Forward-Looking Statements

    CAUTION REGARDING FORWARD-LOOKING STATEMENTS THIS PRESENTATION MAY CONTAIN FORWARD-LOOKING STATEMENTS. W E HAVE BASED ANY SUCH FORWARD-LOOKING STATEMENTS LARGELY ON OUR CURRENT BELIEFS, EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS AND FINANCIAL TRENDS AFFECTING OUR BUSINESS. ALTHOUGH MANAGEMENT

  3. Slide 3: Note Regarding Presentation and Comparison of Information

    NOTE REGARDING PRESENTATION AND COMPARISON OF INFORMATION ON NOVEMBER 9, 2017, SMU SIGNED A BINDING AGREEMENT FOR THE SALE OF ITS SUBSIDIARY CONSTRUMART S.A. AND ITS SUBSIDIARIES. SUCH COMPANIES COMPRISED THE “CONSTRUCTION MATERIALS” OPERATING SEGMENT. IN ACCORDANCE WITH THE PROVISIONS OF IFRS 5, IN

  4. Slide 4: Revenue and Gross Profit – Food Retail Segment

    REVENUE AND GROSS PROFIT – FOOD RETAIL SEGMENT (1) ANNUAL REVENUE (CLP BN) FOURTH QUARTER REVENUE (CLP BN) 2,258 2,222 595 595 2,099 562 538 1,974 28.4% 28.2% 27.5% 27.5% 26.3% 27.0% 25.6% 26.5% 2014 2015 2016 2017 4Q14 4Q15 4Q16 4Q17 REVENUE GROSS MARGIN REVENUE GROSS MARGIN REVENUE GROSS PROFIT 

  5. Slide 5: Revenue by Format

    REVENUE BY FORMAT 2017 VS 2016 REVENUE BY FORMAT (CLP BN) HIGHLIGHTS  STRONGEST GROWTH SEEN IN UNIMARC SUPERMARKETS (+2.3%) AND PERU (+12.8%)  LOWER CASH & CARRY REVENUES DUE TO CHANGE IN MAYORISTA 10 VALUE PROPOSITION, BUT WITH POSITIVE GROWTH IN 4Q17 (+0.5%) 35.7 0.3 0.1 4.9 2,257.5 (4.3) (1.1)

  6. Slide 6: Food Retail Segment: Same-Store Sales and Sales/m2

    FOOD RETAIL SEGMENT: SAME-STORE SALES AND SALES/M2 ANNUAL SSS AND SALES/SQUARE METER (1)(2) FOURTH QUARTER SSS AND SALES/SQUARE METER (1)(2) 319 323 306 304 299 285 288 263 7.1% 5.7% 7.8% 5.7% 4.8% 5.4% 1.7% 0.4% 2014 2015 2016 2017 4Q14 4Q15 4Q16 4Q17 SALES/M2 (CLP THOUS.) SSS (%) SALES/(CLP THOUS.

  7. Slide 7: Operating Expenses – Food Retail Segment

    OPERATING EXPENSES(1) – FOOD RETAIL SEGMENT ANNUAL OPERATING EXPENSES FOURTH QUARTER OPERATING EXPENSES (CLP BN) (CLP BN) 495 447 479 435 125 127 114 118 22.0% 21.6% 21.9% 21.3% 21.1% 20.9% 21.1% 21.3% 2014 2015 2016 2017 4Q14 4Q15 4Q16 4Q17 OPEX OPEX/REVENUE OPEX OPEX/REVENUE CENTRALIZATION – FOOD

  8. Slide 8: EBITDA – Food Retail Segment

    EBITDA(1) – FOOD RETAIL SEGMENT ANNUAL EBITDA (CLP BN) FOURTH QUARTER EBITDA (CLP BN) 142 131 109 43 38 34 71 6.3% 28 5.9% 7.2% 5.2% 5.1% 6.4% 3.6% 6.1% 2014 2015 2016 2017 4Q14 4Q15 4Q16 4Q17 EBITDA EBITDA MARGIN EBITDA EBITDA MARGIN 2017 EBITDA: CLP 142.0 BN  +8.3% (+CLP 10.9 BN) VS. 2016  EBITD

  9. Slide 9: Consolidated Net Income

    CONSOLIDATED NET INCOME ANNUAL NET INCOME (CLP BN) FOURTH QUARTER NET INCOME (CLP BN) 28 12 18.3 2.0 1.4 (37) (5.2) 4Q14 4Q15 4Q16 4Q17 (100) 2014 2015 2016 2017 CONSOLIDATED NET INCOME:  2017: CLP 27.6 BN (+126.4% / +CLP 15.4 BN VS. 2016)  4Q17: CLP 18.3 BN (+1,210% / +CLP 16.9 BN VS. 4Q16) IMPRO

  10. Slide 10: Recent Highlights

    RECENT HIGHLIGHTS PLAN CIMA UPDATE AGREEMENT FOR SALE OF CONSTRUMART  BINDING AGREEMENT SIGNED NOV. 9, 2017  CUSTOMER EXPERIENCE:  PRICE OF ASSETS: CLP 49.5 BILLION  STORE UPGRADES: 8 RE-INAUGURATIONS IN OCTOBER-JANUARY  LESS NET FINANCIAL DEBT AND OTHER HABITUAL  OPERATING EFFICIENCY: ADJUSTM

  11. Slide 11: International Bond – Partial Redemptions

    INTERNATIONAL BOND – PARTIAL REDEMPTIONS PARTIAL REDEMPTION FEBRUARY 9, 2018  USD 120 MILLION PRINCIPAL AMOUNT  COST OF PREPAYMENT: 1.938%  USING PROCEEDS FROM NOVEMBER 2017 CAPITAL INCREASE PARTIAL REDEMPTION APRIL 2, 2018  BONDHOLDERS WERE NOTIFIED ON MARCH 2, 2018  USD 80 MILLION PRINCIPAL A

  12. Slide 12: Credit Rating Upgrades

    CREDIT RATING UPGRADES LOCAL CREDIT RATINGS: INVESTMENT GRADE  HUMPHREYS: UPGRADE FROM BB (STABLE OUTLOOK) TO BBB- (STABLE OUTLOOK) ON NOVEMBER 23, 2017, AND SUBSEQUENTLY TO BBB (STABLE OUTLOOK) ON FEBRUARY 6, 2018  ICR: UPGRADE FROM BB+ (POSITIVE OUTLOOK) TO BBB- (POSITIVE OUTLOOK) ON JANUARY 24,

  13. Slide 13: Financial Debt

    FINANCIAL DEBT (1) CAPITAL INCREASES 2017-2018: FINANCIAL DEBT (EXCL. FINANCIAL LEASES(2))  TOTAL PROCEEDS: APPROX. CLP 300 BN  PROCEEDS USED TO REPAY AND PREPAY DEBT AS OF DEC. 31, 2016 AS OF DEC. 31, 2017 LOCAL BOND PLACEMENTS 2017: 13.9% 27.2%  TOTAL PROCEEDS: UF 4 MN (APPROX. CLP 110 BN) 22.6

  14. Slide 14: Debt Maturity Profile

    DEBT MATURITY PROFILE DEBT MATURITY PROFILE AS OF DECEMBER 31, 2017(1) (CLP BN) 244 84 104 76 40 2018 2019 2020 2021 2022+ DEBT MATURITY PROFILE AS OF DECEMBER 31, 2017(1) PRO FORMA(2) (CLP BN) 121 104 76 84 40 2018 2019 2020 2021 2022+ LOCAL BONDS INTERNATIONAL BOND BANK DEBT SOURCE: COMPANY INFORM

  15. Slide 15: 2018 Outlook

    2018 OUTLOOK CHALLENGES AND INITIATIVES: FORMATS  UNIMARC: STORE UPGRADES AND STANDARDIZATION OF PROCESSES  MAYORISTA 10: CONTINUE FINE TUNING VALUE PROPOSITION AND COST STRUCTURE  ALVI: STRENGTHEN RELATIONSHIP WITH MOM AND POP CUSTOMERS THROUGH CLUB MAYORISTA ALVI  OK MARKET: STORE OPENINGS AND

  16. Slide 16: Earnings Presentation: Fourth Quarter 2017

    EARNINGS PRESENTATION: FOURTH QUARTER 2017 MARCH 2018

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