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2 3 Highlights Cencosud 1Q13 for 4 Operational & Financial - PowerPoint PPT Presentation

Dec 30, 2023 •651 likes •958 views

2 3 Highlights Cencosud 1Q13 for 4 Operational & Financial Highlights 1Q13 was a quarter of integration of Colombian supermarkets First complete quarter operations after the acquisition Continuous improvement in the

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  3. 3 Highlights Cencosud 1Q13 for

  4. 4 Operational & Financial Highlights • 1Q13 was a quarter of integration of Colombian supermarkets • First complete quarter operations after the acquisition • Continuous improvement in the consolidation of Johnson in Chile Gross margin improvement from Brazilian operations • • Department Store division inaugurated the first Paris store in Peru Chilean market thriving • • Key Financials Revenues increased 18% YoY in USD • Adjusted EBITDA grew 9% YoY • Net income decreased 62% YoY • FirstQuarter2013

  5. 5 Solid revenue and adjusted EBITDA growth despite extraordinary costs Revenues evolution (US$bn) Adjusted EBITDA by Country Colombia 1% Peru 8% +18% 1Q12 Chile 38% Brazil 25% 1Q 2012 1Q 2013 Colombia 10% Adjusted EBITDA (US$mm) and margin (%) Peru Chile 7% Argentina 28% 37% 9% 6.2% Brazil 6.7% 1Q13 21% 1Q 2012 1Q 2013 Argentina 25% *Figures include the provision. Excluding this effect adjusted EBITDA growth was 23%, an improvement of 30 bps in EBITDA margin

  6. SG& A impacted by extraordinary provision 6 SG& A by division / Sales by division * Excludes the USD 40 million provision * Excludes segment others Consolidated (USD million) 1Q12 1Q13 1Q13 Sales 4,450 5,229 5,229 SG&A 993 1,224 1,266 SG&A over sales (%) 22,3% 23,7% 24,2% • SG&A expenses impacted by Colombia Integration & one-off provision in financial services • Excluding these factors SG&A expenses over sales was 23.7% • Cost-cutting initiatives

  7. 7 CHILE: Leader • Chilean business showed a strong performance • 2.6% growth in supermarket SSS in a • Costanera & Osorno drove shopping center performance thriving • Johnson turning around continues market • Operational strategies will maintain competitive advantage • Solid macroeconomic outlook, retail sector growing

  8. Johnson: Integration show ing results 8 • Johnson had a strong 1Q13 • Revenues rose 18% in CLP • SSS grew 20% • Gross margin rose from 22.1% in 1Q12 to 29.7% in 1Q13 • With the migration of the Johnson Distribution Center in January 2013, has finished the integration process with Paris. • An Improved seasonal transition with a shorter liquidation period and early entry of fall fashion, has allowed a significant increase in ending margins in 1Q13. • A new celebrity in communicating and building a close and convenient brand gave Johnson a new positioning and greater visibility in the first quarter.

  9. 9 Brazilian Operation: Continuing progress • SSS growth of 2.3% shows engagement • Gross margin improvement highlights efficiency • SAP implementation on going, ending quarterly the stores incorporation by July and the Distribution Centers by August results Brazil • Unification process of check outs: Emporium • Sales growth despite SAP implementation ongoing • We are already completing the unification process of vendor contracts among all flags in Brazil

  10. Colombia Integration Update 10 • Rebranding: On march 31 st : 2 pilot Jumbo stores in Bogota with an outside • “coming soon Jumbo” sign. • Main rational: socio economic level in selling area, sales per square meter and whether the store is located in a shopping mall or stand alone. • Commercial strategy: JUMBO: Outstanding shopping experience • Enhanced offering of top quality fresh food, wider aisles, fewer promotional material and impeccable stores. • Outstanding service. • Assortment redefinition. METRO: Saving without sacrificing quality • Good quality of fresh food, clean and cheerful stores, good service, strong value communication. • Inventory reduction by selling out low turnover sku’s • Cultural Transition : • Training Program: All employees received an induction program on Cencosud´s culture and values

  11. Openings Openings 11 5 1Q13 vs. 4Q12 1Q13 vs. 1Q12 +30% increase in selling Shopping 6 1 space 169 Centers Super Super Department 4 markets* markets Store Department +35% 895 supermarkets & 78 stores & 0.4 mn of m2 in Store increase in 1 Home 2.3 mn of m 2 1Q13 1Q13 (1 Johnson closing) selling space Vs. Vs. 793 supermarkets & 1.8 mn 78 stores & 0.4 mn of m2 in +6% increase in Improvement of m 2 in 4Q12 4Q12 selling space Considers 96 stores & 0.4 Considers 96 stores & 0.4 mn of m 2 of Colombian mn of m2 of Colombian supermarkets supermarkets +1% increase in selling space * Includes 96 new supermarkets and 431,040 sq meters from the Colombian operations.

  12. 12 Results By Business

  13. SUPERMARKETS 13 Revenue evolution (US$ bn) SSS evolution by country in local currency +19% 1Q 2012 1Q 2013 Adjusted EBITDA evolution (US$ mm) +11% Source: Cencosud. Figures converted to USD, exchange rate by the end of March 2012 and 2013 1Q 2012 1Q 2013

  14. HOME IMPROVEMENT 14 Revenue evolution (US$bn) SSS evolution by country in local currency +11% 1Q 2012 1Q 2013 Adjusted EBITDA evolution (US$mm) +6% 1Q12 1Q13 1Q 2012 1Q 2013

  15. DEPARTMENT STORES 15 Revenue evolution (US$ bn) SSS evolution by country in local currency +15% 1Q 2012 1Q 2013 Adjusted EBITDA evolution (US$ mm) 1Q12 1Q13 +38% * Non comparable figures. In 1Q13, SSS consolidate Johnson stores. 1Q 2012 1Q 2013

  16. SHOPPING CENTERS 16 Revenue evolution (US$ bn) Adjusted EBITDA evolution (US$ mm) +39% +47% 1Q 2012 1Q 2013 1Q 2012 1Q 2013

  17. FINANCIAL SERVICES Gross loan 17 portfolio evolution CHILE ARGENTINA PERU MM CLP 75 MM USD 429.526 277 239 418.316 185 44 406.317 1Q11 1Q12 1Q13 1Q11 1Q12 1Q13 1Q12 1Q13 Provision/ Loans (%) Provision/ Loans (%) Provision/ Loans (%) 14,5% 11,5% 9,1% 6,9% 7,9% 5,4% 7,6% 7,2% 1Q12 1Q13 1Q11 1Q12 1Q13 1Q11 1Q12 1Q13

  18. 18 Cencosud Financial Structure

  19. Financial Ratios 19 Net leverage (net debt/EBITDA) Net debt evolution (US$bn) 1Q13 1Q13 2009 2010 2011 2012 2009 2010 2011 2012 Interest coverage Total debt / equity 1Q13 1Q13 2009 2010 2011 2012 2009 2010 2011 2012

  20. 20 Amortization schedule (US$mm) Breakdow n by issuer Breakdow n by currency Breakdow n by interest rate Subsidiaries Variable rate Fixed rate Cencosud S.A. Note: Includes cross-currency swaps Source: Cencosud Note: Includes cross-currency swaps

  21. 21 • Pre-emptive rights period concluded in March • 299,688,946 shares subscribed MANAGEMENT STOCK OPTION PLAN • 300 employees entered retention plan • Options issued in 2009; exercised in Capital April 2013 Raise NEW BOARD MEMBER • Independent members: Richard Büchi and David Gallagher • Büchi takes seat previously controlled by Chairman • Demonstrates high standard of Corporate Governance

  22. HOME IMPROVEMENT Regional Drivers 22 Thousands of Homes per Big Box Low penetration / High potential format. Chile Argentina Peru Brazil Colombia GDP per capita GDP per capita Cities w ith more Population 2012, current 2015 Forecast, than 200,000 2012, (millions) US$ current US$ inhabitants Encouraging 11,576 12,350 42.2 17 economic and demographic trends. 15,410 18,468 16.6 12 7,855 9,038 47.1 29

  23. HOME IMPROVEMENT Local Market Drivers 23 • Intense building activity in • Public housing programs • People invest in home housing (public & private) and goods due to uncertainty infrastructure • Long term mortgage • Large scale mining projects • People stimulus (up to 30 years) is refurbishing houses • Refurbishing of old houses in • New openings due to main cities (programs and subsidies) Carrefour acquisition (plug and play business • 15% of the reconstruction model) program budget (2010 earthquake) will be executed this year

  24. HOME IMPROVEMENT Business Highlights 24 2012 Financials: Total 1Q13: 4 stores 82 #2 • Sales: MM US$ 2,215 Stores • EBITDA: MM US$ 190 • EBITDA margin: 8.6% 1Q13 Financials: • Sales: MM US$ 592 • EBITDA: MM US$ 54 31 stores • EBITDA margin: 9.2% #2 47 stores #1

  25. HOME IMPROVEMENT Strategic Initiatives 25 Home Improvement Division is currently involved in the following strategic initiatives: Lean operations initiative (Store efficiency) Strategic overhaul designed to streamline operations and maximize employee face-time with customer Category Management Devising category-specific plans to boost sales and improve productivity per square meter Organizational Culture program Group initiatives designed to maximize employee productivity, loyalty and further improve customer service Multichannel Strategy Developing Home Improvement-specific online presence as a sales and relationship building channel

  26. 26 Environment Overview of

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