CENCOSUD CORPORATE PRESENTATION 3Q19 - Presentación de PowerPoint
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ABOUT CENCOSUD CONSOLIDATED RETAIL PLAYER IN THE LATAM REGION +6.0 MM SQM OF LANDBANK TO FUEL +50 YEARS OF HISTORY FUTURE GROWTH ACROSS THE REGION +132K EMPLOYEES ON-GOING SHOPPING US$ 4.7 BN CENTERS PROJECTS: 5 BUSINESS UNITS MARKET • LA MOLINA CAP • LA 65 HOME DEPARTMENT FINANCIAL SUPERMARKETS SHOPPING CENTERS IMPROVEMENT STORES SERVICES LISTED ON SANTIAGO STOCK EXCHANGE: PRESENCE IN 5 COUNTRIES CENCOSUD (2004) FREE FLOAT: 46.3% AV. TRADING VOLUME: US$7.3MM RATED IG BY MOODY’S & FITCH 1,113 RETAIL STORES - 3.6 MM RETAIL SPACE CENCOSUD SHOPPING (2019) 62 SHOPPING CENTERS - 653K GLA TO THIRD PARTIES FREE FLOAT: 28.4% AV. TRADING VOLUME: US$5.8MM AA+ RATING BY HUMPHREYS AND FELLER
CENCOSUD’S HISTORY Acquired Infante, Economax, Foster & Eurofasion. Purchased Gbarbosa in Brazil and Wong in Peru. JV JV with Scotiabank development of Opened Mall Alto Las Condes & Opened 1st in Colombia for the development of Easy. SF in Peru 1st Easy store in Chile Supermarket Acquired SM Las Brisas, Montecarlo and Acquired Prezunic in Brazil. Opened Mall Opened 1st Jumbo store in Disco Costanera Center. Purchased Carrefour in ARG Santiago Stock Exchange IPO Colombia. 1970 1988 2002 2003 2005 2008 2010 2014 2019 1963 1982 1993 2004 2007 2012 201 8 Launched Financial Services in Chile, Starts FS operations in JV with Scotiabank for Opened Mall Unicenter opened Florida Center & Portal La Argentina. Acquired Blaisten development of SF in Chile Arg. Dehesa. Acquired SM Santa Isabel in Chile Opened Jumbo Acquired Almacenes Paris. IPO of Cencosud Kennedy Acquired Proterra in Chile & Home Montecarlo & Las Brisas Shopping rebranded to Santa Isabel Acquired Super Familia in Depot in Arg. Fortaleza and Bretas in Brazil
2019 FINANCIAL HIGHLIGHTS SALE OF FINANCIAL SERVICES IN PERU In March of 2019, the Peruvian Superintendence approved the sale 51% of Cencosud’s Bank to Scotiabank for a total of USD 100 million. The purpose of the agreement is to boost growth and co-develop the financial services business in Peru. CENCOSUD SHOPPING IPO In June 2019, Cencosud successfully executed the initial public offering (IPO) of its Shopping Centers division in Chile, Peru and Colombia. Raising USD 1,055 million. Price: $1.521 Total Shares: 472,000,000 The new Company owns a total 39 properties (33) in Chile, (2) in Peru and (4) in Colombia. In addition to 3 plots of real estate in Chile and 2 in Peru. LIABILITY MANAGEMENT AND TENDER OFFER In September the Company performed a tender offer of its 2023, 2025 and 2027 bonds for a total of USD 474 million. In November 2019, Fitch Ratings updated their rating from stable to negative watch.
WHY CENCOSUD? Established presence in largest economies of the region Healthy balance sheet structure Organic growth opportunities in fast developing countries through our landbank. MAIN CORE ETHICS & SUSTAINBLE VALUES Strong Corporate Governance Further development of our omnichannel strategy Focus set on productivity & efficiency
OUR PRESENCE BY COUNTRY REVENUES BY COUNTRY LTM AS OF SEP’19 ADJ. EBITDA LTM AS OF SEP’19: US$1,166 MM US$13,836 mm ADJ. EBITDA MG: 8.4% 9% 4% 11% 21% 14% 48% 52% 5% 18% 18% i: For calculation details please revise page 13 248 284 202 94 96 SUPERMARKETS SUPERMARKETS SUPERMARKETS SUPERMARKETS SUPERMARKETS 36 51 F.S JV WITH BRADESCO 36 10 HOME IMPROVEMENT HOME IMPROVEMENT HOME IMPROVEMENT HOME IMPROVEMENT 78 22 11 4 DEPARTMENT STORES SHOPPIN CENTERS DEPARTMENT STORES SHOPPING CENTERS 33 FINANCIAL SERVICES 3 F.S: JV WITH COLPATRIA SHOPPING CENTERS SHOPPING CENTERS F.S: JV WITH SCOTIABANK FS: JV WITH SCOTIABANK
OUR PRESENCE BY BUSINESS UNITSi REVENUES LTM AS OF SEP’19: ADJ. EBITDA LTM AS OF SEP’19: US$1,166 mm US$13,836 mm ADJ. EBITDA MG: 8.4% 2% STRONG FOOD RETAIL 11% US$ 321MM PLAYER; MORE RESILIENT TO US$ 136MM 12% ECONOMIC DOWNTURNS 48,1% mg RETAIL SEGMENT US$ 1,639MM 5% ACCOUNTED FOR 66% OF EBITDA US$ 58MM 3.5% mg 12% US$ 1,667MM 14% 72% US$ 178MM 47% 2% US$ 10,044MM 10.9% mg US$ 361MM US$ 593MM 6.0% mg 23% RETAIL SEGMENT ACCOUNTED FOR 95% OF REVENUES US$ 284MM 79.6% mg. For calculation details please go to page 13 RECOGNIZED BRAND PORTFOLIO
SOUND BALANCE SHEET LATEST NEWS DEBT BY CURRENCY (AFTER CCS) ● Cencosud executed the IPO for its Shopping Centers division in Chile, Peru and Colombia raising USD 1,055 million. Proceeds will be use to pay off Otras Latam Otras Latam; 6% 8% debt. USD 16% ● Cencosud executed a tender offer for its 2023, 2025 and 2027 Bonds for USD up to USD 474 million. CLP + UF 20% 83% CLP + UF ● Investment Grade rating since 2011 (In Novemeber, Fitch Ratings updated 73% their ratings from stable to negative) ● Fitch Ratings: BBB- (negative) ● Moody’s: Baa3 (negative) 3Q19 3Q18 NET FINANCIAL EVOLUTION DEBT AMORTIZATION SCHEDULE (US$ MM) 4,4 4,2 3,8 3,9 987 4,6 3,7 3,6 3,5 Deuda 3,3 3,9 3,8 Financiera Neta 3,7 3,7 3,4 (USD mm) 3,3 3,2 605 577 581 424 NFD/EBITDA Ajustado (veces) 213 192 156 53 48 53 34 50 14 2012 2013 2014 2015 2016 2017 2018 09.2019 19 20 21 22 23 24 25 26 27 28 29 30 41 45
ORGANIC GROWTH CENCOSUD SHOPPING CENTERS PROJECTS: LANDBANK PER COUNTRY (SQM): COUNTRY Q SQM LA MOLINA – PERU LA 65 - COLOMBIA CHILE 36 2.1MM ARGENTINA 34 3.1MM BRAZIL 23 328K LA MOLINA: • HIGH SEGMENT DISCTRICT PERU 22 129K • +35.7K GLA COLOMBIA 8 127K • ANCHOR STORES • OPENING DATE: 2H2021 CAPEX BREAKDOWN CHANGES IN SELLING AREA US$ 300 MM CENCOSUD’S CAPEX 2019 17% LA 65: 4 • UP & COMING DISTRICT OPENINGS • +78K GLA 50% • ANCHOR STORES 32 • OPENING DATE: 2H2022 33% REMODELLINGS ORGANIC GROWTH 5 RECURRENT CAPEX CLOSURES TECHNOLOGY & OMNI STRATEGY
OMNICHANNEL STRATEGY ANY-HOW Long-term objectives: ANY’S STRATEGY • Improve websites & apps, ANY-WHERE surpass industry standards • Optimized product mix with ANY-TIME 100% delivery in our stores ANY-THING • Reduce cost through automatized tools ALL THE TIME SUPERMARKETS FOOTPRINT CHILE ARG COL PER % FOOD ONLINE 94% 100% 79% 88% % NON-FOOD ONLINE 66% 100% 239% 62% Ov. Tot. Sales Over Tot. % SKU DROPSHIP - 8% 63% 26% E-commerce Sales VAR % 19/18 3Q19 Sales 3Q18 Supermarkets 40,5% 1,9% 1,2% EXPRESS DELIVERY 1.5 HRS 2 HRS 3 HRS 1.5 H5 Department Stores 25,3% 12,0% 8,5% Home Improvement 41,1% 4,0% 2,6% Total 33,9% 3,4% 2,2%
PRODUCTIVITY & EFFICENCY SHARED SERVICES CENTER Offers services to other units, thus reaching functional specialization on recurring & high volume transaction. REGIONAL PROCUREMENT & OPERATING WITH 120 CREATING OVER 650K PAYMENT ORDERS AS WELL AS RECONCILED PRIVATE LABEL TEAM ROBOTS, SSC HAS PROCESSED 14MM INVOICES 180MM COUPON CARDS. THE COMPANY CREATED A REGIONAL PURCHASE TEAM WITH THE RESULTS: RECOVERED USD 5MM FOR LOSSES BY USD 30.5MM DUE TO PURPOSE OF: COMMERCIAL AGREEMENT, DECREASED IMPROVED MANAGMENT OF ANNUAL OFF SEASON AVAILABILITY OF INVENTORY. PRODUCTS COST EFFICIENCY IN BIG DATA ANALYTICS PROCURMENT BIG DATA ANALYTICS DEPARTMENT CENCOSUD IS A PIONEER IN THE CREATED OVER TWO YEARS AGO LATAM REGION FOR CREATING A TAKING ADVANATGE OF THE EXTENSIVE CENTRALIZED TEAM OF PRODUCT DATABANK OF THE COMPANY DEVELOPMENT AND PRIVATE LABEL THROUGH THE IMPLEMENTATION OF A PURCHASING. PLATFORM THAT IDENTIFIES SYNNERGIES AND PROVIDES INDEPTH INSIGHTS
ETHICS & SUSTAINABLE VALUES KEY DIMENSIONS OF OUR ETHICS CODE PILLARS OF THE SUSTAINTABILITY STRATEGY 2019 HIGHLIGHTS: o Recognized in Dow Jones Sustainability Index (DJSI), placed in the #12 position (up 3 places vs 2018). Yearly revised ethics code Trained Board of Directors and Employees on ethics issues. More than 137,000 people trained on ethics issues and sustainability. Signed Code of ethics and Code of Conduct by all employees. Available hotline for unethical behavior
STRONG CORPORATE GOVERNANCE BOARD OF DIRECTORS NEW CORPORATE STRUCTURE Organizational Structure1 Chief Executive Manager Matias Videla SM Chile Peru Manager Argentina Manager Cristian Siegmund Alfredo Mastrokalos Diego Marcantonio Dept. Store Chile Colombia Manager Brazil Manager Ricardo Bennett Marta Lucia Henao Sebastian Los Home Imp. Chile Felipe Longo NEW MANAGEMENT STRUCTURE WTH THE PURPOSE: SOX STANDARD SINCE 2012: BOARD OF DIRECTOR COMITTEE TAKE FURTHER ADVANTE OF LOCAL MARKET KNOWLEDGE • 7 SEASONED BOARD MEMBER • ROBERTO PHILLIPS EXPEDITE DECISION MAKING • 2 INDEPENDET MEMBERS • MARIO VALCARCE PROMOTE EFFICENCIES ACROSS EACH BUSINES UNIT • ALEJANDRO PERÉZ
CALCULATION DETAILS For this presentation the following exchange rates, calculations and details were considered: Market cap calculated as of September 2019 using the stock closing price of CLP 1,200 and average Exchange Rate of CLP 683,06 per US$ Daily average trade volume; Figures as of September 2019 using close stock price CLP $1,200 and an average exchange rate of CLP 683,06 per US$ Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. Revenues and Adjusted EBITDA converted to US$ using a last twelve month average exchange rate of CLP $683,06 per US$ Revenues and Adjusted EBITDA include IFRS16 accounting rule for the first 9 months of 2019. Revenue and Adjusted EBITDA graph exclude the “others” segment, which contributes US$12mm in revenues and –US$82mm in Adj. EBITDA. Revenues and Adjusted EBITDA exclude the adjustment of hyperinflation in Argentina (IAS29), including the adjustment, revenues for the LTM period were US$14.189 MM and Adjusted EBITDA was US$1,193 MM, using end of period exchange rate of CLP 679,2 per US$. Argentina represented a 20.3% of total revenues and 20.2% of total Adjusted EBITDA. Debt denominated in US$ using end of period exchange rate as of September 2019. Debt includes liabilities of leases due to the adoption of new IFRS16 rule as well as includes the hyperinflationary effect of Argentina due to IAS29 rule. Amortization schedule is presented net off gains/losses from mart to market of derivatives, overdrafts and Comex debt (excluding forwards). Debt by currency after cross currency swaps.
You can also read