Inretail Peru Corp. · BVL:INRETC1

Inretail Peru — Q3 2017 Earnings Presentation

17 slides from Inretail Peru's earnings presentation, November 2017

  1. Slide 1: Earnings Presentation Q3'17

    EARNINGS PRESENTATION = 0317 ee November 2017 i InRetail

  2. Slide 2: Q3'17 Consolidated results, results by segment, other financial results

    Q3’17 consolidated 1 results Q3’17 results 2 By SEGMENT OTHER Financial 3 results

  3. Slide 3: Q3'17 Consolidated results

    1 Q3’17 Consolidated results 3

  4. Slide 4: Q3'17 consolidated financial results

    Q3’17 consolidated financial results Million Soles (S/ mm) Highlights Revenues +7.3% Resilient growth in revenues and double digit growth in net income, in a still slow macroeconomic environment 5,305 5,690  Supermarkets: high single digit growth in revenues and double digit growth in EBITDA +6.5%

  5. Slide 5: Revenue and EBITDA breakdown

    Revenue and ebitda breakdown Million Soles (S/ mm) Revenues Adj. EBITDA +7.4% +2.8% Pharmacies 5,372 Supermarkets 357 367 5,001 38% 39% 46% 50% 6.7% 4.7% 1,689 1,802 122 128 61% 62% 40% 39% 52% 49% 50% 54% 60% 61% 48% 51% Q3’16 Q3’17 YTD’16 YTD’17 Q3’16 Q3’17 YTD’16 YTD’17 Gross 28.8% 28.8% 28.5% 28

  6. Slide 6: Q3'17 Results by Segment

    2 Q3’17 Results by SEGMENT 6

  7. Slide 7: Supermarkets

    SUPERMARKETS S/. mm Q3'17 Q3'16 Var % Revenues 1,100 1,018 8.0% Gross Profit 290 269 7.7% EBITDA 66 59 10.7% Gross Mg 26.4% 26.5% -9 bps EBITDA Mg 6.0% 5.8% 14 bps SSS growth of 3.9% Net growth of 12k sqm in supermarkets sales area (+4.3%) and 92 net additional Mass stores since Q3’16 EBITDA margin

  8. Slide 8: Pharmacies

    Pharmacies S/. mm Q3'17 Q3'16 Var % Revenues 705 675 4.5% Gross Profit 232 220 5.5% EBITDA 63 64 -1.2% Gross Mg 32.9% 32.6% 30 bps EBITDA Mg 8.9% 9.4% -52 bps SSS of -4.5% Opened 20 pharmacies and closed 14 in Q3’17 (+175 additional pharmacies since Q3’16, +17.9%) Gross margin improved 30 bps in Q3’

  9. Slide 9: Shopping malls

    Shopping malls S/. mm Q3'17 Q3'16 Var % Revenues 117 114 2.4% Gross Profit 81 80 1.2% Adj. EBITDA 73 74 -0.4% Gross Mg 69.4% 70.3% -86 bps Net Rental Mg 79.5% 83.1% -364 bps Tenants’ SSS growth of 1.3% Maintained high occupancy rates in malls of ~97% Gross and Net Rental margin impacted by higher re

  10. Slide 10: Quarterly Openings and SSS by Segment

    Quarterly Openings and SSS by Segment Openings Same Store Sales (SSS) Supermarkets Supermarkets 2016: 1.2% Sales Area (‘000 sqm) YTD’17: 5.8% 319 7.9% 288 289 290 304 306 316 5.8% 3.4% 3.9% Mass 285 285 285 295 295 299 298 Spmkts 0.6% 1.0% 0.0% Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q1’16 Q2’16 Q

  11. Slide 11: Other Financial Results

    3 OTHER FINANCIAL RESULTS Pinketal

  12. Slide 12: Consolidated net income

    Consolidated net income Million Soles (S/ mm) Net Income Net Income Breakdown +4.0% 183 -2 63 176 -5 17 49 4 -4 4 +28.9% 63 49 Q3’16 Q3’17 YTD’16 YTD’17 Net EBITDA Lower Net Higher FX Higher Higher Net Income Growth Financial Mark to D&A Tax Income Q3’16 Expenses Market Q3’17 Net Margin 2.7% 3.3% 3.

  13. Slide 13: Capex and cash-flow breakdown

    Capex and cash-flow breakdown Million Soles (S/ mm) Consolidated Capex Cash-Flow Breakdown 2016: S/ 523 mm YTD’17: S/ 408 mm 195 161 159 -408 443 130 119 158 -136 87 79 244 -103 197 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Starting Operating CAPEX Debt Financial Other Non- Ending Cash Cash Flow Inc

  14. Slide 14: Consolidated financial debt

    Consolidated financial debt Million Soles (S/ mm) Consolidated Financial Debt1/ USD Exposure 4.0x 4.0x 3.6x 3.6x 3.6x 3.5x 3.4x 3.3x 2.9x 39% 39% 42% 3.2x 2.9x 2.9x 2.8x 72% 23% 22% 23% 1.3x 38% 40% 35% 28% 2012 2013 2014 2015 2016 LTM LTM dic-14 dic-15 dic-16 sep-17 Q3’16 Q3’17 Net Debt/EBITDA Debt

  15. Slide 15: Debt by segment

    Debt by segment Million Soles (S/ mm) Total Consolidated Debt: S/2,780 mm Debt / EBITDA: 3.4x Net Debt / EBITDA: 2.9x 3.2x 8.2x 3.0x 3.1x 3.0x 3.0x 2.9x 2.8x 2.7x 2.4x 2.6x 2.6x 5.4x 5.5x 2.0x 2.4x 2.2x 4.4x 4.3x 4.3x 4.2x 4.9x 4.7x 4.0x 3.7x 3.7x 3.3x 0.4x 2012 2013 2014 2015 2016 LTM LTM 2012 2013

  16. Slide 16: Investor relations contacts

    Vanessa Dañino IRO Alessandra Garrido IR Senior Analyst Shirley Perez IR Analyst IR email: ir@inretail.pe Phone: +511 612 5423

  17. Slide 17: Disclaimer

    This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities. This presentation may include forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these f

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