Alsea, S.a.b. De C.v. · BMV:ALSEA
Alsea, S.a.b. De C.v — Q2 2021 Earnings Presentation
29 slides from Alsea, S.a.b. De C.v's earnings presentation, 2021
Slide 1: Update 2Q21
update 2Q21
Slide 2: Our Presence
Our PRESENCE 11 17 4,204 countries brands restaurants Netherlands 89 Belgium 32 Luxembourg 4 France 194 México 2,169 Portugal 23 Spain 1,046 22% Colombia 189 +60,000 +289 FRANCHISES Uruguay 9 employees million clients CORPORATE Chile 202 served Argentina 247 78% 1,255 1,532 402 76 33 6 77 266 16 2 2
Slide 3: Alsea's History
Alsea´s History 1990 1992 1995 1999 2002 2006 2007 2008 2009 2012 2013 2014 2016 2018 2019 2021 UNITS 01 500 1,000 1,862 2,714 3,195 4,204 Launch Business Model Expansion Consolidation 2Q21 3
Slide 4: Alsea Today
ALSEA Today TOTAL Corporate 1,275 818 402 256 101 84 60 76 16 33 88 16 27 13 6 2 3 3,276 Franchises 257 437 - 10 128 36 17 - - - 17 24 - - - - 2 928 Total 1,532 1,255 402 266 229 120 77 76 16 33 105 40 27 13 6 2 5 4,204 Sales per geography EBITDA per geography 13% 8% pre IFRS 16 29% 52% 35% 63% Mexi
Slide 5: Innovation: Consumer & Technology – Multi-brand Rewards Program
INNOVATION Consumer & Technology MULTI-BRAND REWARDS PROGRAM • Alsea's Digital Transformation +800,000 • Omnichannel experience 32% Active members INCREASE in average ticket mobile web call center WOW is in 6.8% Delivery linked to WOW rewards app of ALSEA Mexico Sales 2Q21 5
Slide 6: Innovation: Consumer & Technology – Apps and Digital Coupon
INNOVATION Consumer & Technology APPS DIGITAL COUPON • 3x more efficient than paper coupons • 45.34% redemption +6.8 MILLION • Smart targeting according to customers´ needs and preferences DOMINO’S APP +2.3 DOWNLOADS • Evolution to an ecosystem of benefits +1.7 MILLION and omni-channel STARBUCKS REWARD
Slide 7: Strategy
strategy 2Q21
Slide 8: Strategic Definitions
ALSEA Strategic Definitions Our Business Value Proposition Way to win Purpose We focus on the We are a company of people and Alsea’s Culture Brand Portfolio operation of restaurant for the people, committed to Best Talent Ignite chains, own and excellence in operation, acting franchisees and related
Slide 9: Diversified Portfolio
DIVERSIFIED ACTUAL MARKET POPULATION GDP USD CLIENTS Portfolio 4,204 UNITS +395 MILLION 8,360 BILLION +289 MILLION POPULATION SEGMENTS DAY PARTS AB C+ C C-, D+ D, E Morning Lunch Afternoon Evening Served by the Informal sector 2Q21 9
Slide 10: Growth Strategy
GROWTH Strategy ORGANIC GROWTH ACQUISITIONS + SSS New Brands Growth Storage Openings Franchises & Sub-franchises New Brands Existing Brands New Markets New Markets OPERATING BUSINESS MIX OPERATING LEVERAGE Corporate EFFICIENCES + + Franchised Margin Sub-franchised Cost of Sales Pricing Strategy Expa
Slide 11: Mexico Strategy
Mexico Strategy TOTAL UPSIDE + 1,685 STORES Market Holding Capacity with SIGNIFICANT upside 26 31 43 19 31 22 67 37 12% 1% 28% 39% Franchises 81% Corporate 69% 66% 62% 57% 46% 30% 33% 2Q21 11
Slide 12: Europe Strategy
Europe Strategy TOTAL UPSIDE + 1,300 STORES Market Holding Capacity with SIGNIFICANT upside 50 32 54 40 48 60 9% 7% 39% 14% Franchises 11% Corporate 43% 51% 29% 35% 38% 29% 11% SPAIN PORTUGAL FRANCE BELGIUM NETHERLANDS LUXEMBOURG 2Q21 12
Slide 13: South America Strategy
South America Strategy AVAILABLE MARKET + 550 OPPORTUNITY STORES Market Holding Capacity with SIGNIFICANT upside 48% 42% 69% 84% 39 35 49 28 40 67 59 67 60 61 72 Franchises 72% 9% Corporate 61% 65% 60% 51% 33% 32% 33% 40% 39% 28% ARGENTINA CHILE COLOMBIA URUGUAY 2Q21 13
Slide 14: Distribution Centers
DISTRIBUTION Centers SUPPLY CHAIN MODEL MEXICO VARIES IN REGION 4 Hermosillo DISTRIBUTION Argentina 128 STORES CENTERS • Operation and distribution through a third party • +300 suppliers • +1,300 SKUs Monterrey Colombia 261 STORES • Hybrid model of distribution (mix between own and third party resou
Slide 15: Operation Center COA
ALSEA Operation Center 74,500 m2 TOTAL LAND 17,228 RACK POSITION warehouses offices 46,000 m2 10,004 COA BUILT WAREHOUSE +50 CENTRALIZED 1,761 DOCKS OPERATION IN REFRIGERATE bakery MEXICO CITY AND SURROUNDINGS commissary 5,463 FROZEN fresh dough production 2Q21 15
Slide 16: Financials
Financials 2Q21
Slide 17: Consolidated Results pre-IFRS
Consolidated Results pre-IFRS 16 Sales EBITDA 2Q21 12,399 2Q21 1,529 140.7% 187.6% 2Q20 5,151 2Q20 -1,745 FY20 38,229 FY20 1,489 (33.4)% (80.5)% FY19 57,444 FY19 7,650 Net Ordinary Income Net Debt/ EBITDA 2Q21 48 2Q21 6.6x 101.9% 2Q20 -2,578 2Q20 7.2x FY20 -4,061 N.A. Excluding effect of IFRS 16, a
Slide 18: Consolidated Results post-IFRS
Consolidated Results post-IFRS 16 Sales EBITDA 2Q21 12,477 2Q21 2,848 140.1% 415.4% 2Q20 5,198 2Q20 -903 FY20 38,495 FY20 6,988 (33.8)% (44.6)% FY19 58,155 FY19 12,618 Net Ordinary Income Net Debt/ EBITDA 2Q21 57 2Q21 5.0x 101.9% 2Q20 -2,982 2Q20 6.3x FY20 -3,847 N.A. Including the restatement due t
Slide 19: Business Overview Mexico
Business Overview Mexico 1% 2% 1% Units 3% Sales* 2% Adjusted 2% 1% 4% 1% 4% EBITDA* 4% 2% 8% 5% Pre IFRS 16 5% 36% 6% 35% 7% 42% 13% 9% 10% 15% 10% 34% 21% 17% 83% Corporate 17% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 2Q21 FY20 2Q21 FY20 2,467 2,215 2,346 2,272 2,092 2,184 2,169 SS
Slide 20: Business Overview Europe
Business Overview Europe Other** 1% 1% 1% 1% 1% Units 2% Sales* Adjusted 2% 2% 4% 1% 6% EBITDA* 6% 8% Pre IFRS 16 9% 31% 10% 34% 37% 9% 14% 12% 16% 18% 14% 18% 25% 17% 62% Corporate 38% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 2Q21 FY20 2Q21 FY20 1,398 1,376 1,388 SSS 24.4% (24.4%) 2
Slide 21: Business Overview South America
Business Overview South America 1% 1% Units 1% Sales* 2% Adjusted 4% 4% EBITDA* 42% Pre IFRS 16 15% 20% 36% 43% 48% 21% 26% 35% 3% -1% -1% 94% Corporate 6% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 2Q21 FY20 2Q21 FY20 628 640 633 647 SSS 98.3% (20.1%) 98.3% (20.1%) 481 543 97% Revenue
Slide 22: Business Overview Alsea
Business Overview Alsea 1% Other** 1% 1% 1% 2% 1% 3% 2% Units 2% 2% 1% Sales* 3% Adjusted 1% 3% 2% 3% 4% EBITDA* 1% 1% 1% 28% Pre IFRS 16 3% 5% 4% 36% 8% 5% 39% 6% 8% 11% 10% 15% 24% 33% 30% 78% Corporate 22% Franchises Results Pre-IFRS 16 Post-IFRS 16 Total Stores 2Q21 FY20 2Q21 FY21 4,310 4,193 4,
Slide 23: Leverage and CAPEX
Leverage and CAPEX 9% 11% 11% 11% 9% 7% 4% - 2.9x 2.3x 2.4x 2.0x 3.4x 2.9x 19.0x - CAPEX as percentage of sales Net Debt / EBITDA 4.8 4.3 4.3 CAPEX 3.4 3.8 (excluding acquisitions) 3.2 2.1 1.7 2014 2015 2016 2017 2018 2019 2020 2021e FIGURES IN BILLION PESOS 2Q21 23
Slide 24: Debt Profile
DEBT Profile Pre IFRS 16 Post IFRS 16 Debt Maturity Capital structure 2Q21 2Q20 2Q21 2Q20 Net Debt / EBITDA 6.6 x 7.2 x 5.0 x 6.3 x 1% 33% 36% 8% 7% 9% 6% EBITDA/ Interest Paid 2.0 x 1.7 x 3.4 x 2.7 x $11,405 $10,525 Average cost 6.6% Peso 7.3% Euro 1.9% 2Q21 Main Banks 2Q21 Bond Debt 25% Scotianban
Slide 25: 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 highest Full support for the health and safety of our employees and Dedicated to serving our communities constructively throug
Slide 26: Contingency: Short-term Revenue Initiatives
Contingency 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 situation • Open stores in all markets following each country's regulations and guidelines and 1 In-St
Slide 27: Contingency: Plan Execution
Contingency Plan Execution Swift implementation and execution of action plan to enhance liquidity • Labor support initiatives supported by governments and unions (ERTE and “4x3") 1 Personnel • Governments support programs: Spain, Argentina, Chile • Lean and flexible corporate team with full capabili
Slide 28: Contingency: Plan Execution
Contingency Plan Execution Swift implementation and execution of action plan to enhance liquidity 1 • Contactless experience and implementation of safety protocols in all units 2 • Alignment of employee trainings to post-Covid-19 requirements • Reinforce Brand OwnersReinforce alternative distributio
Slide 29: Investor Information
ALSEA Investor information Headquarters Alsea, S.A.B. de C.V. Av. Revolución #1267 -21st. Floor Salvador Villaseñor Corporate Tower Col. Los Alpes, Del. Alvaro Obregón ri@alsea.com.mx Zip Code 01040, Mexico City Phone: +52 (55) 7583-2000 Phone: +52 (55) 7583-2000 The slides of this presentation, con
Alsea, S.A.B. de C.V. — Q2 2021 Earnings Presentation on 6ix