Corporate Presentation 3Q18 1
INVESTMENT HIGHLIGHTS OUR STRATEGY LOOKING AHEAD 2
WHY CENCOSUD? UNPARALLELED GROWTH TRACK LEADING SOUTH AMERICAN PREMIER BRAND PORTFOLIO WITH 2 1 3 RECORD HOLDING VALUABLE 1 2 INTEGRATED MULTI-FORMAT STRATEGY 3 MULTI-FORMAT RETAILER 1 LAND BANK Recognized brand portfolio 6.1 mm sqm of land bank to fuel 5 Business Divisions & 5 countries future growth across the region Leadership positions across the region TOTAL SELLING SPACE (‘000 sqm) Market Cap US$ 6.8 bn 2 135,182 employees 4.417 4.418 4.401 4.387 1,114 retail stores + 54 shopping centers 4.356 3.6 mm sqm of retail space + 782,545 sqm of shopping centers GLA to third parties 2014 2015 2016 2017 09.2018 LISTED ON BCS 4 PRIVILEDGED POSITION TO BENEFIT 4 SEASONED MANAGEMENT TEAM 3 6 5 RATED IG BY MOODY’S AND FITCH 4 6 5 FROM IMPROVED ECONOMIC ENVIRONMENT Sound Corporate Governance with Market leadership positions across Listed on BCS (2004) SOX standards: the region 46.3% Free Float 8 Seasoned Board Members Peru: Daily Avg. Trading Volume: US$ 8.7 3 Paulmann Family members 133,510 sqm of land bank mm 2 Independent members La Molina Project Rated IG by Moody’s and Fitch Board of Directors Committee: Argentina: Member of the EME DJSI Total of 3 members; 2 3.2 mm sqm land bank independent 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. 3 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$.
CENCOSUD: A PAN-REGIONAL MARKET LEADER JV COLOMBIA 3 RD SUPERMARKET 2 ND HOME IMPROVEMENT JV BRAZIL PERU 4 TH SUPERMARKET Leadership position in Northeast, 2 ND SUPERMARKET Minas Gerais, and Río de Janeiro 4 TH DEPARMENT STORES JV CHILE ARGENTINA 2 ND SUPERMARKET 2 ND SUPERMARKETS 2 ND HOME IMPROVEMENT 1 ST HOME IMPROVEMENT 2 ND SHOPPING CENTERS 1 ST SHOPPING CENTERS 2 ND DEPARTMENT STORES Note; Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria). In May 8, 2018 an agreement was signed with Scotiabank to jointly develop the business in Peru. 4
REGIONAL MULTI-FORMAT MARKET LEADER, DIVERSIFIED BY BUSINESS UNIT AND GEOGRAPHY ADJ. EBITDA BREAKDOWN BY GEOGRAPHY (LTM as of Sept ‘18 ) REVENUE BREAKDOWN BY GEOGRAPHY (LTM as of Sept ‘ 18) US$ 1,046 mm 1,2,3 (6.9% Adjusted EBITDA margin) US$ 15,104 mm 3 10% 4% 8% 10% 45% 14% 27% 59% 23% CHILE ARGENTINA BRAZIL PERU COLOMBIA • 250 supermarkets • 284 supermarkets • • 93 supermarkets 200 supermarkets • 99 supermarkets • 35 home improvement stores • 51 home improvement stores • • 3 different regions 11 department stores • 10 home improvement stores • 81 department stores • 22 shopping centers • • F.S.: JV with Bradesco 4 shopping centers • 2 shopping centers • 26 shopping centers • Financial Services • Financial Services • F.S.: JV with Colpatria • F.S.: JV with Scotiabank 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 5 5 end of period exchange rate of CLP 660.42 per US$. Argentina represented 19% of total revenues and 25% of total Adjusted EBITDA.
STRONG FOOD RETAIL PLAYER; A BUSINESS MORE RESILIENT TO ECONOMIC DOWNTURNS ADJUSTED EBITDA BY BUSINESS (LTM as of Sept 2018) 1 REVENUE BREAKDOWN BY BUSINESS (LTM as of Sept 2018) 1,4 US$ 1,046 mm (6.9% Adjusted EBITDA margin) 2,3,4 US$ 15,104 mm Retail accounted for 63% Retail accounted for 2% 15% of Adjusted EBITDA 95% of Revenues 12% US$ 549mm 5% US$10,650mm 5.2% mg 42% 13% US$206mm US$1,916mm 10.7% mg 16% 71% US$69mm 2% US$1,771mm 3.9% mg Complementary Complementary Business Business US$375mm US$292mm 22% 78.0% mg US$383mm US$198mm 51.6% mg Financial Services Home Improvement Department Stores Supermarkets Shopping Centers Note: Figures converted to US$ 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 6 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, 6 using end of period exchange rate of CLP 660.42 per US$.
PROVEN GROWTH TRACK RECORD • Total selling space grew from 2.8 mm sqm (CAGR: 6.4%) in 2010 to 4.4 mm sqm in 2017. Consolidation and synergies IPO • NYSE Revenues increased from US$9.3 bn in (CAGR: 2010 to US$17 bn in 2017 7.8%) Internationalization process Delisting NYSE Peru 16,6 16,5 15,8 15,7 15,7 15,1 Consolidation in the Chilean market 13,9 11,5 IPO BCS 1 9,4 9,3 8,3 Opening of first 5,7 supermarkets 4,7 3,8 2,1 1,4 1,0 1993 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 1976 1988 1982 09.2018 1 Revenues denominated in US$, calculated with an exchange rate of CLP 660.42 per US$ 7 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange)
STRONG LIQUIDITY POSITION AND COMFORTABLE AMORTIZATION SCHEDULE DEBT BY CURRENCY (AFTER CCS) 3 ● 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 Others Latam; Others Latam; 9% Incabond (PEN 280 million) in 2Q18. 7% ● Investment Grade rating since 2011 USD; 20% USD; ● Fitch Ratings: BBB- (stable) 21% ● Moody’s: Baa3 (negative) CLP + CLP + UF; UF; 73% 3Q18 3Q17 70% DEBT AMORTIZATION SCHEDULE (US$ MM) 1,2 NET FINANCIAL DEBT EVOLUTION 4,6 4,5 1.085 4,0 3,9 3,8 3,7 4,6 4,5 3,5 805 Net Financial 727 3,7 3,7 Debt (USD bn) 600 3,4 3,3 3,2 343 350 230 208 NFD/Adj. 185 EBITDA (times) 59 54 43 36 25 16 18 19 20 21 22 23 24 25 26 27 28 29 30 41 45 2012 2013 2014 2015 2016 2017 09.2018 1 Debt denominated in US$ using end of period exchange rate of 30 September 2018 8 2 Amortization schedule is presented net off gains/losses from mark to market of derivatives, overdrafts and Comex debt (excluding forwards). 8 3 Debt by currency after cross-currency swaps.
EXPERIENCED MANAGEMENT TEAM CORPORATE GOVERNANCE AND BOARD OF DIRECTORS MANAGEMENT TEAM 2 • Sound corporate governance SOX Standards: 20 Bronislao Jandzio Andreas MD of Audit • 8 seasoned Board members: Gebhardt 10 years in the CEO • 3 Paulmann Family members industry • 2 Independent members Rodrigo Horst Dag • Board of Directors’ Committee (CMF 1 ): Rodrigo Hetz Antonio Ureta 8 6 13 17 Paulmann K. Larraín Loebenstein SM HHRR • Roberto Philipps CFO CLM • Richard Büchi (Independent) Peter Heike Paulmann K. • Mario Valcarce (Independent) Paulmann K. Matias Videla Ricardo Bennett Eric Basset Patricio Rivas 12 22 16 22 DSM HIM FSM CSCM Roberto Julio Moura Philipps Carlos 24 Mechetti GC Cristián Mario Eyzaguirre Valcarce Independent Years in members # Cencosud Richard Büchi 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. 9
INVESTMENT HIGHLIGHTS OUR STRATEGY LOOKING AHEAD 10
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