25 slides from Alsea, S.a.b. De C.v's investor presentation, Feb 15, 2016
Slide 1: Factory, PRCUMNGR Og Archie's LAVACA
Ga @ : Factory, PRCUMNGR Og Archie's LAVACA
Slide 2: Our presence 2Q16
Our presence 2Q16 22% 14 Franchises Brands 3,037 units 78% Corporate Mexico Argentina Colombia Chile Brazil Spain 2,106 189 138 125 4 475 +60,000 employees +382 millions annual clients
Slide 3: Alsea Mexico - Today
Alsea Mexico - Today 2Q16 Stores Corporate Franchises Alsea Mexico Employees 379 246 28 538 16 205 241 17 55 9 59% 7 20 2 Sales Share 6 22 6 62 12 3 246 5 3 % 71 2 72% EBITDA 2 2 ShareShare 1 Total 1,600 506
Slide 4: Alsea Internacional - Today
Alsea Internacional - Today 2Q16 Stores Corporate Franchises Alsea Internacional Employees 215 30 South America Spain 198 21% 200 35 9 20% 27 84 125 14 41% Sales Share 11 5 10 5 10 9% 3 1 19% % *Others 3 41 2 28% Total 763 168 EBITDA ShareShare
Slide 5: Alsea - Today
Alsea - Today 2Q16 Stores Corporate Franchises 594 279 21 Sales per geography Employees 736 19 405 241 Mexico South America Spain 18 246 5 15 84 125 5 55 62 12 4 71 20% 4 31 4 41 % 3 20 2 2 2 21% 59% 2 5 10 10 1 1 *Others 2 Total 2,363 674
Slide 6: Acquisitions Update
Acquisitions Update 2Q16 • New menu: more attractive • New image: Product, service, layout & culture • Improved SSS • Re-launch of the brand •Positive SSS trend •40 units to be remodeled - 2016 Currently Currently •Development plan on hold - 2017 Currently 1 2 3 1 2 3 Transition Brand Evolution Impr
Slide 7: Grupo Zena Acquisition
Grupo Zena Acquisition 2Q16 Estimates at acquisition vs. Real 331 43 Sales EBITDA 289 264 32 35 Before 1st Year Dec-15 Before 1st Year Dec-15 Acquisition Target LTM Acquisition Target LTM Acquisition Multiple 8.1x Dec-15LT M 6.2x Free Cash Flow Dec-15LTM€M€ 14m Dec-15Net Debt/ EBITDA 2.2x Figures in
Slide 8: Innovation – Consumer - Technology
Innovation – Consumer - Tecnology 2Q16 Multi-brand Apps Rewards program Description / Objective: know your customer Reach: 1st stage - Mexico How does it work: Gaining and Redeeming points Almost 200,000 registered users
Slide 9: Strategy
Strategy 2Q16
Slide 10: Alsea Strategic Definitions
Alsea Strategic Definitions 2Q16 To be the best restaurant operator, ensuring a great experience with each customer with PURPOSE the best portfolio and the best profitability Customer First Respect and loyatty Orientation to results Personal excellence OUR VALUES with our partners and and commitment
Slide 11: Business Model
Business Model 2Q16 Operations Marketing Human Real Estate Resources Support Information Social Finance Supply Chain Technology Responsability Brands Brands Business Model People Others Competitive Advantages . Diversified Portfolio . Leading GLobal Brands . Shared Services . Cross Brand synergies &
Slide 12: Markets
Markets 2Q16 Diversified Portfolio Actual Market Population GDP USD +382 3,037 478 5,118 Million Clients served as of Popular Segments A/B C+ C C-/D+ D/E units million billion Jun 16 LTM Potencial Per-Capita expense expansion* (Figures in usd) Served by the informal sector 324 326 488 512 740 1,979
Slide 13: Mexico Strategy
Mexico Strategy 2Q16 Market Holding Capacity Corporate Franchises 85 - 95 Openings for 2016 Finance 15 - 20 - 50 - 55 4 1 1 5-8 1 2 5-7
Slide 14: International Strategy
International Strategy 2Q16 Market Holding Capacity Corporate Franchises Col. Arg. Chl Col. Arg. Chl Col. Arg. Chl Col. Bra 70 - 80 Openings for 2016 Annual Growth by Country Argentina Chile Colombia Brazil Spain 2016e 15 - 20 10 - 15 8 - 10 1-2 25 - 30
Slide 15: Growth Strategy
Growth Strategy 2Q16 Organic Growth Acquisitions + SSS + Store Openings + New + Franchisees & Brands Sub franchisees GROWTH + New + New + Existing + New Brands Markets Brands Markets Operating Business Mix Operating Leverage Efficiencies Corporate, Franchised, Cost of Sales MARGIN Sub-franchised, Pr
Slide 16: Financials
Financials 2Q16
Slide 17: Consolidated Results
Consolidated Results 2Q16 Sales EBITDA 17% 42% 32,288 23% 54% 4,302 9,066 1,223 7,762 22,787 998 2,802 CAGR 29% CAGR 34% (10 - 15) (10 - 15) 2Q15 2Q16 12m - Dec14 12m - Dec15 2Q15 2Q16 12m - Dec14 12m - Dec15 Net Ordinary Income * Net Debt 12,094 52% 392 82% 1,137 11,578 258 CAGR 48% 624 (10 - 15) 2
Slide 18: Business Overview - Mexico
Business Overview - Mexico 2Q16 % Adjusted 2Q16* Units Sales EBITDA Adjusted Units Sales 25 26 28 EBITDA 12 22 19 30 14 12 21 9 2 RESULTS 2Q16 12m Dec15 Total Stores 3 7 8 SSS 6.2% 4.4% CAGR 15% 2,106 2,092 4 6 7 1,999 Revenues $5,348 $19,896 1,571 - 6 13 1,380 Adjusted EBITDA $1,279 $4,674 1,075 1,
Slide 19: Business Overview - International
Business Overview - International 2Q16 % Adjusted 2Q16* Units Sales EBITDA Adjusted Units Sales 22 37 28 EBITDA 21 17 23 22 18 24 27 21 24 Total Stores 931 836 1 2 0 CAGR 38% 785 1 1 -1 RESULTS 2Q16 12m Dec15 SSS 23.0% 21.5% 2 1 1 287 0.1 0.1 0 Revenues $3,718 $12,392 208 169 172 Adjusted EBITDA $62
Slide 20: Business Overview - Alsea
Business Overview - Alsea 2Q16 % Adjusted 2Q16* Units Sales EBITDA 24 22 26 Adjusted Units Sales EBITDA 21 20 11 29 17 16 8 13 13 7 7 8 Total Stores 2 4 5 3,037 CAGR 20% 2,954 2 4 5 2,784 RESULTS 2Q16 12m Dec15 - 4 9 SSS 9.6% 9.3% 1,862 1,421 2 3 1 Revenues $9,066 $32,288 1,283 1,206 EBITDA $1,223 $
Slide 21: Debt Profile
Debt Profile 2Q16 Debt maturity Capital structure 2Q16 2Q15 Avarage cost 7% 5% 24% 19% 33% 4% 8% 4,333 Net Debt / EBITDA 2.5x 3.2x peso: 5.7% EBITDA / Interest Paid 6.2x 6.4x euro: 2.0% 3,176 2,528 Debt structure 2Q16 Main banks 987 1,000 752 475 Bond Debt 51% Scotiabank 15% Bank of America 8% Bank
Slide 22: Store Economics - Avg. LTM
Store Economics - Avg. LTM 2Q16 Avarage Investment (000’s USD) Annual Revenues / Investment 1,600 2.5x 1,200 2x 1.5x 800 1x 400 0.5x EBITDA Margin - Store Level (%) ROI - Store Level (%) (1) 30 50 25 40 20 30 15 20 10 10 5 Figures as of June 2016. Considers an exchange rate of $17.97 / (1) ROI - EBI
Slide 23: Guidance 2016
Guidance 2016 2Q16 Between Mid to high Mid teens 155 -175 Single Digit Growth TOP LINE GROWTH openings SSS Revenues 5bn pesos EBITDA margin expansion EBITDA ~20 to 30bps GROWTH 3.2 - 3.3bn < 2.5x CAPEX* Net debt / EBITDA * Excluding acquisitions
Slide 24: Future Targets: EBITDA margin expansion
2Q16 2016e 2020e EBITDA margin expansion FUTURE TARGETS $0.77 *Without considering any effects from the Put / Call Options.
Slide 25: Investor Information
HEADQUARTERS ALSEA S.A.B. DE C.V. Av. Paseo de la Reforma #222 – 3rd. Floor Tower 1 Corporativo Col. Juárez, Del. Cuauhtémoc Zip Code 06600, México D.F Phone: +52 (55) 5241-7100 INVESTOR INFORMATION Diego Gaxiola Cuevas / CFO ri@alsea.com.mx Phone: +52 (55) 5241-7151 The slides of this presentation,