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CorporatePresentation3Q18
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INVESTMENT HIGHLIGHTS
OUR STRATEGY
LOOKING AHEAD
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WHY CENCOSUD?
1 Figures as of September 2018
2 Market Cap calculated as of September 2018 using the stock closing price of CLP 1,564 and constant Exchange rate of CLP 660,42 per US$
3 David Gallagher presented his resignation on June 29, effective immediately due to his appointment as ambassador of the United Kingdom.
4 BCS stands for Bolsa de Comercio de Santiago. Figures as of September 2018 using close stock price CLP 1,564 and a constant Exchange rate of CLP 660,42 per US$.
LEADING SOUTH AMERICAN MULTI-FORMAT RETAILER1
PREMIER BRAND PORTFOLIO WITH INTEGRATED MULTI-FORMAT STRATEGY
UNPARALLELED GROWTH TRACK RECORD HOLDING VALUABLE
LAND BANK
SEASONED MANAGEMENT TEAM3 LISTED ON BCS4
RATED IG BY MOODY’S AND FITCHPRIVILEDGED POSITION TO BENEFIT
FROM IMPROVED ECONOMIC ENVIRONMENT
5 Business Divisions & 5 countries
Leadership positions across the region
Market Cap US$ 6.8 bn2
135,182 employees
1,114 retail stores + 54 shopping centers
3.6 mm sqm of retail space + 782,545 sqm of shopping centers GLA to third parties
Sound Corporate Governance with SOX standards:
8 Seasoned Board Members
3 Paulmann Family members
2 Independent members
Board of Directors Committee:
Total of 3 members; 2 independent
Listed on BCS (2004)
46.3% Free Float
Daily Avg. Trading Volume: US$ 8.7 mm
Rated IG by Moody’s and Fitch
Member of the EME DJSI
Market leadership positions across the region
Peru:
133,510 sqm of land bank
La Molina Project
Argentina:
3.2 mm sqm land bank
Recognized brand portfolio 6.1 mm sqm of land bank to fuel
future growth across the region
TOTAL SELLING SPACE (‘000 sqm)
1 2 3
4 5 6
4.387 4.417 4.418 4.401
4.356
2014 2015 2016 2017 09.2018
1 2 3
4 5 6
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CENCOSUD: A PAN-REGIONAL MARKET LEADER
COLOMBIA
3RD SUPERMARKET
2ND HOME IMPROVEMENT
CHILE
2ND SUPERMARKET
2ND HOME IMPROVEMENT
2ND SHOPPING CENTERS
2ND DEPARTMENT STORES
PERU
2ND SUPERMARKET
4TH DEPARMENT STORES
ARGENTINA
2ND SUPERMARKETS
1ST HOME IMPROVEMENT
1ST SHOPPING CENTERS
4TH SUPERMARKET
Leadership position in Northeast,
Minas Gerais, and Río de Janeiro
BRAZIL
Note; Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria).
In May 8, 2018 an agreement was signed with Scotiabank to jointly develop the business in Peru.
JV
JV
JV
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REGIONAL MULTI-FORMAT MARKET LEADER, DIVERSIFIED BY BUSINESS UNIT AND GEOGRAPHY
59%27%
10% 4%
45%
23%
14%
10%8%
Note: Figures converted to US$ using a constant exchange rate of CLP 660.42 per US$
1 Graph excludes Adj. EBITDA from Brazilian operations which presented a negative contribution of US$ 30 mm
2 Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. These figures include CLP 11,097 mm of extraordinary gains
from the sale of non-core real estate assets in the LTM period.
3 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 14,446 mn and Adjusted EBITDA was US$ 1,015 mn, using
end of period exchange rate of CLP 660.42 per US$. Argentina represented 19% of total revenues and 25% of total Adjusted EBITDA.
REVENUE BREAKDOWN BY GEOGRAPHY (LTM as of Sept ‘18)
US$ 15,104 mm3
ADJ. EBITDA BREAKDOWN BY GEOGRAPHY (LTM as of Sept ‘18)
US$ 1,046 mm1,2,3 (6.9% Adjusted EBITDA margin)
• 250 supermarkets
• 35 home improvement stores
• 81 department stores
• 26 shopping centers
• F.S.: JV with Scotiabank
• 284 supermarkets
• 51 home improvement stores
• 22 shopping centers
• Financial Services
• 200 supermarkets
• 3 different regions
• F.S.: JV with Bradesco
• 93 supermarkets
• 11 department stores
• 4 shopping centers
• Financial Services
• 99 supermarkets
• 10 home improvement stores
• 2 shopping centers
• F.S.: JV with Colpatria
CHILE ARGENTINA BRAZIL PERU COLOMBIA
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STRONG FOOD RETAIL PLAYER; A BUSINESS MORE RESILIENT TO ECONOMIC DOWNTURNS
Note: Figures converted to US$ using a constant exchange rate of CLP 660.42 per US$
1 Graph excludes the “Others” segment, which contributes US$ 9 mm in revenues and –US$ 267 mm in Adj. EBITDA. Adj. EBITDA represents EBITDA plus exchange differences and gains
(losses) from indexation units, minus revaluation of assets.
2 Revenues and Adjusted EBITDA from Shopping Centers don’t include related party transactions
3 Mg = Adjusted EBITDA margin
4 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 14,446 mn and Adjusted EBITDA was US$ 1,015 mn,
using end of period exchange rate of CLP 660.42 per US$.
REVENUE BREAKDOWN BY BUSINESS (LTM as of Sept 2018)1,4
US$ 15,104 mm
ADJUSTED EBITDA BY BUSINESS (LTM as of Sept 2018)1
US$ 1,046 mm (6.9% Adjusted EBITDA margin)2,3,4
Retail accounted for
95% of Revenues
US$10,650mm
US$1,916mm
US$1,771mm Complementary
Business
US$206mm10.7% mg
Retail accounted for 63%
of Adjusted EBITDA
US$69mm3.9% mg
US$ 549mm5.2% mg
US$292mm78.0% mg
US$198mm51.6% mg
Complementary
Business
Supermarkets Home Improvement Department Stores Shopping Centers Financial Services
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US$383mm
US$375mm
71%2%
13%
12%
2%
42%
22%
16%
5%
15%
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PROVEN GROWTH TRACK RECORD
1,0 1,4 2,1
3,8 4,7
5,7
9,3 8,3
9,4
11,5
13,9 15,7
16,5 16,6 15,7 15,8
15,1
1 Revenues denominated in US$, calculated with an exchange rate of CLP 660.42 per US$
2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange)
• Total selling space grew from 2.8 mm sqm
in 2010 to 4.4 mm sqm in 2017.
• Revenues increased from US$9.3 bn in
2010 to US$17 bn in 2017
(CAGR:
6.4%)
(CAGR:
7.8%)
1976 1982 1988 1993 2002
Opening of first supermarkets
IPO BCS1
IPO NYSE
Consolidation in the Chilean market
Internationalization process
Peru
Consolidation and synergies
Delisting NYSE
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
09.2018
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STRONG LIQUIDITY POSITION AND COMFORTABLE AMORTIZATION SCHEDULE
1 Debt denominated in US$ using end of period exchange rate of 30 September 2018
2 Amortization schedule is presented net off gains/losses from mark to market of derivatives, overdrafts and Comex debt (excluding forwards).
3 Debt by currency after cross-currency swaps.
● Pre-payment of the 2021 and 2023 bonds in 3Q17 & Pre-payment of
local bonds BCencE (UF 2 million), BCencO (CLP 54,000 million) and
Incabond (PEN 280 million) in 2Q18.
● Investment Grade rating since 2011
● Fitch Ratings: BBB- (stable)
● Moody’s: Baa3 (negative)
DEBT BY CURRENCY (AFTER CCS) 3
DEBT AMORTIZATION SCHEDULE (US$ MM)1,2NET FINANCIAL DEBT EVOLUTION
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3Q18 3Q17CLP + UF;
73%
USD; 20%
Others Latam; 7%
CLP + UF; 70%
USD; 21%
Others Latam; 9%
4,6
3,7 3,93,5
3,84,0
4,5
4,6
3,43,7
3,3 3,2
3,7
4,5
2012 2013 2014 2015 2016 2017 09.2018
Net FinancialDebt (USD bn)
NFD/Adj.EBITDA (times)
25
343
600
185
59
805
36
727
54
1.085
230
43 16
208
350
18 19 20 21 22 23 24 25 26 27 28 29 30 41 45
EXPERIENCED MANAGEMENT TEAM
CORPORATE GOVERNANCE AND BOARD OF DIRECTORS
• Sound corporate governance SOX Standards:
• 8 seasoned Board members:
• 3 Paulmann Family members
• 2 Independent members
• Board of Directors’ Committee (CMF1):
• Roberto Philipps
• Richard Büchi (Independent)
• Mario Valcarce (Independent)Heike
Paulmann K.
Horst
Paulmann K.
Peter
Paulmann K.
Richard
Büchi
Cristián
Eyzaguirre
Julio Moura Roberto
Philipps
Mario
ValcarceIndependentmembers #
MD of Audit
Bronislao Jandzio 20
FSMDSM HIM
HHRR8
CFO CLMSM
10 years in the
industry
Andreas
Gebhardt
Rodrigo HetzRodrigo
Larraín
Ricardo Bennett
Dag
LoebensteinAntonio Ureta
Patricio RivasEric Basset
CEO
Years in Cencosud
6 13 17
12 16 2222
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CSCM
Matias Videla
GC
Carlos
Mechetti
CEO: Chief Executive Officer. HHRR: Human Resources. CFO: Chief Financial Officer. CLM:
Corporate Logistics Manager. SM: Supermarkets Manager; DSM: Department Stores Manager. HIM:
Home Improvement Manager. FSM: Financial Services Manager. CSCM: Corporate Shopping Centers
Manager. GC: General Counsel.
2 Jaime Soler presented his resignation effective as of September 30, 2018. In his replacement the
Board has appointed Andreas Gebhardt, who assumed this function in October 1, 2018.
MANAGEMENT TEAM2
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INVESTMENT HIGHLIGHTS
OUR STRATEGY
LOOKING AHEAD
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THE THREE PILLARS OF OUR STRATEGY
Financial Strengthening
• Commitment with IG
• Liability Management
• Non-core assets sale
Strategic Alliances
• JVs with Scotiabank, Colpatria and
Bradesco
• Sustainable relationship with
suppliers
Big Data & Analytics
Private Labels and Regional
Synergies
Sustainability
Talent
Health & Wellness
• Organic
• “Free of”
• Health
STRONG VALUES
Digital Transformation and Omni-
channel
• “Whatever you want, whenever you
want, however you want, wherever
you want”
• IT & Logistics Investments
Strategic Planning
• Area in charge of
coordinating and
materializing planning for
each business division
Procurement
• Close to the business
• Regional team
• Efficiency, process and
people
Process Standardization and
Centralization
• SAP Unification
• Robotic Process Automation
• CSC: Continue Growing
Organic Growth
• Remodeling
• Omni-channel
• New projects
1 GROWTH TRENDSEFFICIENCY AND PRODUCTIVITY2 3
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INVESTMENT HIGHLIGHTS
OUR STRATEGY
LOOKING AHEAD
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GUIDANCE AND INVESTMENT PLAN FOR 2018
• For 2018, the company expects revenues of US$16,200 million, based
on an acceleration in sales in Supermarkets, Home Improvement and
Department Stores, in addition to significant growth of the online
business, a continuation of strong performance in Shopping Center
revenues, store openings and a better regional economic environment.
• Adjusted EBITDA margin of 7.2%.
• Our Capex base plan includes investments of US$ 400 million, which
could be revised upwards as our plan to divest non-core assets of up
to US$ 1 billion announced at the end of August last year is executed.
Working Spotlights
• During 2017, 7 stores were opened and the
remodeling of another 18 was completed,
according to the Reinforcement of Value
Proposition and Store Competitiveness
Plan.
• Omnichannel development, innovation and
leadership in new trends.
• The Company made significant progress
increasing efficiencies and lifting service
standards, and continued to execute its
Financial Strengthening and Business
Profitability Plan.
54%26%
20%Remodeling andOrganic Growth
Technology, Logisticsand Omnichannel
Maintenance andrecurring Capex
CAPEX DISTRIBUTION BY INVESTMENT TYPE
US$ 400 mm
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