Falabella S.a. · BCS:FALABELLA
Falabella — S.A.C.I. Falabella — IPO Roadshow (October 2018)
25 slides from Falabella's IPO roadshow presentation, Oct 10, 2018
Slide 1: Roadshow Presentation
Roadshow Presentation October | 2018
Slide 2: Disclaimer
Disclaimer This presentation is not an offer to sell or the solicitation of an offer to buy any securities of S.A.C.I. Falabella (“Falabella” or the “Company”), nor will there be any sales of securities of the Company in any jurisdiction in which the offer, solicitation or sale would be unlawful pri
Slide 3: Agenda
AGENDA 01. USE O F PRO CEEDS 04. S T RAT EG Y F AL ABEL L A’ S UNI Q UE F AL ABEL L A AT A PO SI T I O N T O 02. G L ANCE 05. CAP T URE M ARKET O P P O RT UNI T Y RET AI L MARKET AP P E NDI X: KEY 03. O PPO RT UNI T Y 06. F I NANCI AL S
Slide 4: Transaction Snapshot
TRANSACTION SNAPSHOT 4 Issuer S.A.C.I. Falabella (“Falabella”) Santiago Stock Exchange registered offering with international distribution efforts through 144A/Reg S Distribution format format Offering size 70.7 mm common shares 49.7 mm primary shares (from a capital increase of 84.3 mm common share
Slide 5: Use of Proceeds
USE OF PROCEEDS 5 I N V E S T I N T H E C O M P AN Y G R O W T H S T R AT E G Y US$285M US$200M US$120M US$150M US$80M US$138m fund the Develop logistic Invest in data Finance the IKEA Consolidate acquisition of Linio and e-payment analytics and project Sodimac brand solutions cybersecurity to opera
Slide 6: Falabella at a Glance
FALABELLA AT A GLANCE 6 FI NANCI AL S UP E RMARKE TS FAS HI O N AND S E RV I CE S E LE CTRO NI CS COUNTRIES HO ME RE AL MARKE TP L ACE I MP RO V E ME NT E S TATE US$14. 0b n 13. 5% US$800m 53. 8 % LT M 2Q18 LT M 2Q18 LT M 2Q18 Online orders Revenues EBIT DA margin Online revenues 1 annual growth 2 U
Slide 7: Latin America Presents a Unique Opportunity
LATIN AMERICA PRESENTS A UNIQUE OPPORTUNITY… 7 Large and highly fragmented retail market With low banking penetration US$919bn 37% in LATAM LATIN AMERICA MARKET VALUE BANK DEPOSITS TO GDP 1 GROWING YOUNG AND MIDDLE CLASS POPULATION F AM IL IE S E AR N IN G +U S $ 1 5 K AN N U AL L Y 2.5X in last 10
Slide 8: With Strong Digital Usage and Growing E-Commerce
…WITH STRONG DIGITAL USAGE AND GROWING E -COMMERCE… 8 >65% 357m 49% Visit social media almost Internet users growth every day, over 80% visit Active internet users between 2012-2017 1-2 times per month US$38bn 3.1x 4.2% e-Commerce market e-Commerce penetration 1 Latin America’s size growth between v
Slide 9: Where Retail Physical Penetration Is Relatively Low
...WHERE RETAIL PHYSICAL PENETRATION IS RELATIVELY LOW 9 US 2,431 sqm S Q M O F R E T AI L CONTINENTAL 754 FOR EVERY 1,000 V S EUROPE 1 1,135 sqm PEOPLE UK 1,291 sqm STORES ARE TYPICALLY SMALLER THAN IN THE US 3,500 sqm 9,100 sqm Falabella average store size US benchmark average store size SUPERMARK
Slide 10: Falabella: A Fully Omnichannel Regional Retailer
FALABELLA: A FULLY OMNICHANNEL REGIONAL RETAILER 10 We simplify Latin American consumers’ life by transforming their purchasing experiences CUSTOMERS
Slide 11: Transforming into a Digital Ecosystem Leveraging Our Unmatched Infrastructure
TRANSFORMING INTO A DIGITAL ECOSYSTEM LEVERAGING OUR UNMATCHED INFRASTRUCTURE… 11 Logistics Loyalty Leverage on our Customer knowledge Distribution centres and Novelty logistic network Payment solutions Data Analytics Open platform with tools for Business intelligence our customers, mercha
Slide 12: Strategic Priorities
…BASED ON FIVE PRIORITIES 12 OWN BRANDS 01. AND LONG TAIL PRODUCTS SCALING UP LOGISTICS 02. AND FULFILLMENT Strategic FINANCING AND 03. Priorities ELECTRONIC PAYMENTS DATA ANALYTICS 04. AND BUSINESS INTELIGENCE TECHNOLOGICAL PLATFORM 05. DEVELOPMENT
Slide 13: Focus on Enhancing Our Own Brands' Proposition
FOCUS ON ENHANCING OUR OWN BRANDS’ PROPOSITION... 13 D I F F E R E N T I AT I O N A. An exclusive offer with strong positioning, FASHION B. CHighO Nquality VENIENT PROPOSITION / price relationship, HOME IMPROVEMENT C. PStronger R O F I T AB I L I T Y margins FOOD
Slide 14: Further Strengthened by Our Partnership with IKEA
…FURTHER STRENGTHENED BY OUR PARTNERSHIP WITH IKEA 14 Opportunity to partner with a well-known home furnishings retailer with a strong private brand portfolio Continuously adapting to meet emerging trends IKEA business IKEA Focused on providing a democratic design, delivering quality products at aff
Slide 15: Increase Service Levels by Scaling Up Logistics
INCREASE SERVICE LEVELS BY SCALING UP LOGISTICS 15 STRATEGIC FOCUS FOCUSING ON SERVING LAST MILE STRENGTHENING CUSTOMERS In-house INFRASTRUCTURE AND THIRD PARTIES tracking system Supplier Delivery Falabella Warehouse X-Dock Delivery Seller Reception Exit Stores and Customer transfer centers Storage
Slide 16: Introduction of E-Payments Solutions
INTRODUCTION OF E-PAYMENTS SOLUTIONS 16 FRAUD ONE-CLICK MANAGEMENT PAYMENTS MERCHANT FINANCIAL FINANCING PRODUCTS TRANSACTION LOYALTY TRACKING PROGRAMS PAYMENT INSURANCE RECONCILIATION We seek to build an open platform with tools for our customers, merchants and marketplace
Slide 17: Leverage on Our Customer Knowledge
LEVERAGE ON OUR CUSTOMER KNOWLEDGE UNDERPINNED BY THE DEVELOPMENT OF BUSINESS 17 INTELLIGENCE WHEN DOES MEANS THE CUSTOMER OF PAYMENT PURCHASE + 5. 3M + 324M transactions active CMR in the retail accounts business w/balance HOW MUCH WHERE DOES DOES THE THE CUSTOMER CUSTOMER PURCHASE SPEND + 390M 256
Slide 18: Flexible and Scalable Technological Architecture
FLEXIBLE AND SCALABLE TECHNOLOGICAL ARCHITECTURE 18 SOLUTIONS BUSINESS C AP AB I L I T I E S E N AB L E R S ANALYTICS LOYALTY I T C AP AB I L I T I E S SELLER CENTER ORDER API DEVO PS B2C TEST ENVI RO NM ENT M AN AG EM EN T FRAUD CUSTOMER CORE CIAM CO NTI NUO US I N F R AS T R U C T U R E I NTEG R A
Slide 19: Our Values Are at the Core of Our Strategy
OUR VALUES ARE AT THE CORE OF OUR STRATEGY 19 Exceed Make things Meritocracy Purposeful customers’ happen actions expectations
Slide 20: Falabella's Unique Position to Capture Market Opportunity
FALABELLA’S UNIQUE POSITION TO CAPTURE MARKET OPPORTUNITY 20 G R E AT O P P O R T U N I T Y I N L AT I N AM E R I C A U N I Q U E AS S E T S AN D C AP A B I L I T I E S P R O V E N T R AC K R E C O R D O F EXECUTION AT T R A C T I V E AN D C O N S I S T E N T B U S I N E S S P L AN SUPPORTED BY A DE
Slide 21: Appendix
Appendix
Slide 22: Leading Retailer in the Region and 2nd Largest by Market Capitalization
LEADING RETAILER IN THE REGION AND 2ND LARGEST BY MARKET CAPITALIZATION 22 M AR K E T C AP ITALIZATION (U S $M ) REVENUES LTM2Q18 (US$M) 48,445 30,457 22,407 15,657 14,032 CARG 13’ – ‘17 14,032 9,729 6,652 6,229 5,468 5,204 4,525 4,929 3,538 2,013 Comp.1 Comp.2 Comp.3 Comp.4 Comp.5 Comp.6 Comp.1 Com
Slide 23: Solid Financial Performance, Strong Growth and Outstanding Profitability
SOLID FINANCIAL PERFORMANCE, REFLECTED IN STRONG GROWTH AND OUTSTANDING PROFITABILITY 23 REVENUES (US$M) NON BANKING GROSS BANKING GROSS REVENUE M AR 1 GIN (US$M) GROSS M ARGIN (US$M ) GROSS GROWTH (%) MARGIN (%) MARGIN (%) 14.1% 10.3% 2.5% 4.4% 1.7% 33.8% 33.9% 34.2% 34.4% 35.0% 34.9% 54.3% 56.8% 5
Slide 24: Non-IFRS Financial Metrics Reconciliation
NON – IFRS FINANCIAL METRICS RECONCILIATION 24 The following table sets for the reconciliation of our total net income (retail) to our retail EBITDA for each of the periods presented: Six months ended June 30, Year Ended December 31, 2018 2018 2017 2017 2017 2016 2015 (Ch$ in millions) (US$ in milli
Slide 25: Main Events After 2Q18
MAIN EVENTS AFTER 2Q18 25 M ergers and Acquisitions Follow -on On Octobe r 9th, the Supe rintend enci a d e Ba ncos e On August 17 t h the Comisión pa ra el Merca do Financi ero Institucion es Fin anci eras of Chil e a pp ro ved the integratio n of (CMF) reco rd ed tha t L os Oli vos S.A. wou ld be