Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q2 2020 Earnings Presentation
28 slides from Alsea, S.a.b. De C.v's earnings presentation, 2020
Slide 1: 2Q20 Update
update 20
Slide 2: Our Presence
OUR PRE SENCE 86 278 43 3 5 1 229 30 30 78 106 38 411 UNITS UNITS Mexico Spain 2,236 1,059 Argentina Portugal 253 25 Colombia France 1 169 186 Chile Belgium 1,538 199 31 Uruguay Netherlands 9 85 4 Luxembourg 14 1,221 123 11 COUNTRIES 18 BRANDS 4,256 RESTAURANTS ~70,000 EMPLOYEES +466 CLIENTS SERVED
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 4,256 Launch Business Model Expansion Consolida
Slide 4: Alsea Today
ALSEA T O D AYStores Corporate Franchises Total 14% 1,285 253 1,538 807 414 1,221 411 411 SALES 360 24 384 PER 103 126 229 GEOGRAPHY 54% 88 35 123 32% 71 15 86 78 78 43 43 30 30 (13) % 16 22 38 30 30 (30) % 14 14 ADJUSTED EBITDA 5 5 PER 3 3 GEOGRAPHY 1 1 (57)% 1 1 Mexico Europe TOTAL 3,358 898 4,256
Slide 5: Innovation, Consumer, Technology
I N N O V AT I O N , C O N S U M E R , TECHNOLOGY 31% increase IS IN IN AVERAGE 6% of LINKED TO TICKET Alsea MEXICO SALES WOW REWARDS APP +400,000 ACTIVE MEMBERS mobile web call center 2Q 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 • 15% redemption • Smart targeting according to customers´needs and preferences • Evolution tu an ecosystem of benefits and +2.5 million 1.2 million omnichannel DOMINO´S APP DOWNLOADS 2 million MY
Slide 7: Strategy
strategy 20 2Q 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 4,256units Population +395 GDP USD 8,360 +466 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 2Q 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 Leverage Corporate Efficiencies Store Openings New Brands + Franchises & Sub-franchises Existing Brands SSS Units + Franchised Sub-franchised + Cost of Sales Pricing Strategy,
Slide 11: Mexico Strategy
M E X ICO S T R AT E G Y Market Holding Capacity with significant upside Franchises Corporate Total upside +1,685 stores 81% 12% 1% 28% 69% 39% 66% 62% 57% 46% 30% 33% 2Q2 0 | A L SE A 11
Slide 12: Europe Strategy
O P EE U R O P E AT ESGTYR AT E G Y Franchises Franchises Market g Capacity significant with Holding with significant upside Capacityupside Corporate Corporate 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% 11% Spain Portugal
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 131 stores Monterrey • Hybrid model of distribution 268 Stores (mix between own and third party resou
Slide 15: 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 2Q 2 0 | AL SE
Slide 16: Financials
financials financials 20 19 2Q 2 0 | AL 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) (195.2)% 2Q19 14,456 (64.4)% 1,833 2Q20 5,151 (1,745) FY18 45,320 6,368 +26.8% +20.1% FY19 57,444 7,649 NET ORDINARY INCOME * NET DEBT / EBITDA (1,237)% 2Q19 226 3.5 x Excluding effect of IFRS 16, a 2Q
Slide 18: Business Overview Mexico
BUSINESS OV E RV IE W M E XICO ADJUSTED 68% EBITDA* 2% 2% 1 1 1 % % % 2% 2 % 3% 4% 5% 35% 39% 17% 8% 9 % -5% -4% -4% -4% UNITS SALES* -16% 12 % -19% 12% -24% 34% 27% -110% 84% 16% Corporate Franchises 2,467 2,272 2,236 2,215 2,346 1,999 2,092 Results 2Q20 FY19 86% SSS (44.3%) 3.4% Stores open Revenu
Slide 19: Business Overview Europe
BUSINESS OVERVIEW EUROPE ADJUSTED 3% 1 1 % % EBITDA* 3% 1 1 % % 4% 9 % 52 % 8% 34% 10% 13% 9% UNITS SALES* -1% -4% -10% -3% 12 % -14% 17 % -19% 23% -19% 12% -42% 63% 37% Corporate Franchises 1,398 1,390 Results 2Q20 FY19(Zena) 82% Stores Other** SSS (35.7)% 2.0% 549 593 open 499 Revenues $1,648 $21,
Slide 20: Business Overview South America
BUSINESS OV E RV IE W SOU T H A M E RIC A ADJUSTED EBITDA* % % 5% 1 1 3% 1 1 % % 5% 61% 48% 41% 17% 18 % 9% 1% UNITS SALES* -5% -11% 31% 28% -70% -85% 96% 4% Corporate Franchises 630 628 640 543 481 Results 2Q20 FY19 395 343 SSS (44.2)% 14.6% 66% Stores open Revenues $735 $9,021 Adjusted EBITDA (135
Slide 21: Business Overview Alsea
BUSINESS OVERVIEW ALSEA ADJUSTED EBITDA* 39% 2% 2 2 1 % % % 1 1%1 1 % % % 2% 1 % 2% 3% 36 % 4% 42% 5% 5% 8% 4% UNITS -2% 10% 6% SALES* -4% -7% -15% -9% -6% -10% -7% 14% -34% 29% -49% 79% 21% 22 % Corporate Franchises 4,256 4,310 3,688 3,195 3,438 Results 2Q20 FY19 2,784 2,954 81% Stores open Other**
Slide 22: Debt Profile
DEBT PROFILE Capital structure 2Q20 2Q19 Debt Maturity 3% 13% 23% 35% 6% 6% 8% 6% Net Debt / EBITDA 7.2x 3.5x $11,675 EBITDA / Interest Paid 1.7x 3.9x Average cost 7.51% $7,441 Peso 7.56% $4,157 $2,650 Euro 1.95% $1,986 $2,000 $1,948 $1,049 Debt structure 2Q20 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
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