Corporate Presentation Third Quarter Results 2014
Third Quarter www.cencosud.com 2 The information contained herein has been prepared by Cencosud S.A. (“Cencosud”) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment or other advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this presentation are subject to change without notice and Cencosud is under no obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is qualified in its entirety by reference to more detailed information included in the preliminary offering memorandum. Cencosud and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This presentation may contain statements that are forward-looking subject to risks and uncertainties and factors, which are based on current expectations and projections about future events and trends that may affect Cencosud’s business. You are cautioned that any such forward -looking statements are not guarantees of future performance. Several factors may adversely affect the estimates and assumptions on which these forward- looking statements are based, many of which are beyond our control.
Third Quarter www.cencosud.com 3 • Revenues Pushed Higher by Supermarkets, Home Improvement, Financial Services & Shopping Centers 3Q14 Highlights • Supermarket Sales continue to Gain Traction in Chile, Peru, Argentina & Colombia • Operating Income Remained Flat while including D.O. • Adjusted EBITDA Grew 0.6% YoY. • Net Income Fell on 35% on a Higher Non-Operating Loss Partially Offset by Lower Tax Expenses. • Jaime Soler, Corporate Retail Manager Takes Over as CEO after Daniel Rodriguez Exits
Third Quarter www.cencosud.com 4 Revenue Evolution (CLP mm) Revenue by Country (CLP mm) • Revenue gains in Supermarkets, Financial Services, HI and Shopping Centers Pushed Revenue up by 6.8% • Department Store Business Affected by Lower Discretionary Spending • Devaluation of 18.4% of the ARS Curbed Further Revenue Gains • Colombia SSS Reached Breakeven, According to Budgeted. Brazil SSS posted sequential narrowing
Third Quarter www.cencosud.com 5 Adjusted EBITDA Evolution (CLP mm) EBITDA by Country (CLP mm) • Double digit growth in Home Improvement EBITDA • Lower Contribution From D-Stores, Shopping Centers and Supermarkets. Argentina´s EBITDA Contribution Fell (CLP 10,018 MM) due to the Second Installment of Collective Bargaining Agreements and ARS Depreciation • Department Stores Posted a Weaker Performance in Chile consequence of Weaker Consumer Spending & Our Peru Greenfield • Supermarkets EBITDA Fell in Argentina & Brazil; EBITDA Rose in Chile, Colombia and Peru
Third Quarter www.cencosud.com 6 Strong Performance in Chile • Strong SSS Performance from Chile Supermarket on Santa Isabel Refocus. Adjusted EBITDA Mg expansion of 200 Bps • SG&A Control Helps Drive 32% Growth in Adjusted EBITDA Chile • Well Positioned to Compete in Slowing Retail Environment
Third Quarter 7 Third Quarter 7
Third Quarter www.cencosud.com 8 Supermarkets Adjusted EBITDA evolution (CLP mm) Revenue evolution (CLP mm) SSS evolution by country in local currency • • Revenue was boosted by SSS Improvements in all Markets v 3Q13 Argentine operations posted a 64% EBITDA Contraction YoY mainly as a result of the second instalment of Collective • 9 Net Store Openings YoY or 1.5% Selling Space Growth bargaining agreements. • • Colombia Reached Positive SSS in the Period According to Guidance Brazil posted a weak EBITDA generation due to Lower Gross Margin; partially explained by Greater Shrinkage. The above was partially offset by SG&A Dilution • Chile, Colombia & Peru Posted EBITDA 28% on increased promotional Activity and SG&A Dilution
Third Quarter www.cencosud.com 9 Jumbo Brand in Particular Gaining Strong Momentum Eye On Colombia Among Consumers SG&A Dilution as a Result of an Improved Sales Performance Cencosud has Successfully Positioned its Brands in Colombia as Market Leaders in Perishables
Third Quarter www.cencosud.com 10 Brazil Remains a Challenge
Third Quarter www.cencosud.com 11 Home Improvement SSS evolution by country in local currency Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) • Gross Margin Expanded in All Operations; 34.2% in 3Q14 v. 32.7% in 3Q13. In • Stronger sales across all markets; Following 6 new openings and positive Chile this is partially explained by a greater Retail component to our Sales mix SSS in Argentina and Chile • Chile EBITDA Jumped Due to Lower SG&A Over Sales Resulting from Greater • ARS depreciation curbed revenue expansion for Argentine operations Productivity • • Colombia SSS reflect the effect of competing stores opening over a small Profitability in Argentina was Affected by the Second Instalment of Collective base for SSS Bargaining Agreements • EBITDA loss in Colombia Narrowed despite negative SSS trends
Third Quarter www.cencosud.com 12 Department Store 2014 SSS evolution in local currency Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) Chile EBITDA Peru EBITDA • Focus on Promotions to Spark Recovery of Durables as a • Chile EBITDA Dropped 49% and EBITDA Margin Narrowed Negative Knock on Effect of Demand Shifting to 1H14 on 110 bps. This follows a move to protect the profitability of the World Cup the operation in a seasonally weaker quarter, improving the trend seen in 2Q14 (-520 bps). • New Fast Fashion Proposal to Revive Sluggish Apparel Sales on Slower Discretionary Spending • Softer Apparel Sales Weighed on Margins at Paris Chile • Greater Degree of Promotions in Face of Chilean • Clearance Sales at Our Paris Stores Vying to Keep Consumer Spending Affected by Weaker Confidence Inventories in Check Eroded Profitability • Peruvian Increase in Sales Mainly Explained by Selling • Negative Effects of FX a Thing of the Past as of Sept. Space Growth
Third Quarter www.cencosud.com 13 Shopping Centers Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) • • Revenue Growth Fueled by High Occupancy rates in Chile & Peru Margins in Argentina Affected by Weaker Consumption • • Costanera Center Posts Great Traffic Figures and Resiliency to Slowdown Peru Gross Margin Gains partially Offset Drops in Chile and Argentina on Greater Occupancy • EBITDA in Chile Affected by Refunding of Building Expenses to Tenants
Third Quarter www.cencosud.com 14 Costanera Center • Cencosud is Currently On Track to Deliver on Traffic and Environmental Mitigation Works in Late 1Q15 • Jones Lang & LaSalle Has Been Hired to Consult on the Leasing Process for Costanera Center Tower • Demand for Office Space Continues to be Strong in the “ Sanhattan ” Area, • Currently Leasing Out Low Rise Section of Costanera Center. Process to Go on For 1Q14. • Focus Right Now on Closing Anchor Tenants 15,000 m 2 of Office Space • • Commercial strategy in Line with That of Comparable Developments in the Area
Third Quarter www.cencosud.com 15 Financial Services All portfolio values are MM in local currency • Revenue Growth was Mainly Led by Argentina, Peru & Colombia due to increased portfolios • Results Improved in Argentina, Peru & Colombia on the back of lower risk and a larger portfolio • Regulatory Changes at our banking operations and a CLP 3,902 million charge in anticyclical provisions in Chile Pushing Operating Income Downward
Third Quarter www.cencosud.com 16 Financial Ratios Net debt evolution (US$ bn) Net leverage (net debt / EBITDA) Breakdown by Issuer Breakdown by Rate Breakdown by Currency (after CCS) (after CCS)
Third Quarter www.cencosud.com 17 Amortization Schedule FINANCIAL DEBT USD MM • This chart does not incorporate any pay down of debt with funds to be received from the announced JV in financial services in Chile • Amortization data as of September 30, 2014
Third Quarter www.cencosud.com 16 18 Financial Services Update
Third Quarter www.cencosud.com 19 Timeline for Closing • *: SBIF stands for “ Superintendencia de Bancos e Instituiciones Financieras ” . This is a Chilean government agency charged with the supervising of commercial banks and other financial institutions, safeguard depositors and or creditors and the public interest.
Recommend
More recommend
