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  • Cencosud 2014

    Corporate Presentation

  • 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.

    2 www.cencosud.com

  • 3 Corporate Presentation www.cencosud.com

    2005

    Cencosud Cencosud

    2014

    368 Supermarkets; 0.7 mm m2

    19 Shopping Centers; 0.4 mm m2

    44 Home Improvement; 0.4 mm m2

    22 Department Stores; 0.1 mm m2

    926 Supermarkets; 2.4 mm m2

    48 Shopping Centers; 0.7 mm m2

    91 Home Improvement; 0.8 mm m2

    84 Department Stores; 0.4 mm m2

    CARG 2005 – 2013: 20.2%

    Figures as of March 2014, exchange rates as of the end of each period

    Revenue Evolution (USD MM)

  • 4 Corporate Presentation www.cencosud.com

    Cencosud is a leading multi-format retailer in South America

    Underpenetrated food retail sector Regional Footprint

    Source: ILACAD and US Census Bureau, figures as of December 2013

    63%

    41% 43%

    30%

    48%

    91%

    37%

    58% 58%

    70%

    52%

    9%

    Chile Argentina Brazil Peru Colombia US

    Formal Informal

    4 th

    Supermarkets

    • Northeast Region (#1)

    • Minas Gerais (#2)

    • Rio de Janeiro (#3)

    2 nd

    Supermarket

    1 st Home Improvement

    2 nd

    Shopping Centers

    2 nd

    Supermarkets

    2 nd

    Home Improvement

    2 nd

    Shopping Centers

    2 nd

    Department Store

    1 st Supermarkets

    3 rd

    Supermarkets

    2 nd

    Home Improvement

  • 5 Corporate Presentation www.cencosud.com

    Cencosud a Development and Growth Story

    Source: ILACAD and US Census Bureau, figures as of December 2013

    Colombia

    Consolidation in the Chilean Market

    IPO Santiago Exchange

    Internationalization Process

    Consolidation & Synergies Number of Stores

    Selling Space (million m2)

    Revenue (CLP million)

    648

    2.5

    5,565,246

    1,101

    3.5

    10,439,788

    69%

    40%

    87%

    Adj EBITDA (CLP Million) 1 478,976 720,100 50%,

    Net Financial Debt/EBITDA 2 3.07x 3.6x 17%

    2009 LTM 2Q14 Change (%)

    Acquisitions and

    Revenue

    (USD Billion)

    16.6

    13.6

    11.2

    10.0 11.1

    6.8

    5.6 4.5

    2.5

    1: Adj. EBITDA is calculated as EBITDA minus revaluation of assets, indexation units and foreign exchange variations. 2: Net Financial Debt does not include debt related to Cencosud´s banking activities.

  • Corporate Presentation www.cencosud.com 6

    The Cencosud Advantage

    Market Standing, Scale and Geographic Diversification Unlike that of any Regional Player

    Leading Supermarket Player in Chile, Peru, Argentina and Colombia

    Present in Underpenetrated Markets with Resilient Consumer Spending

    Profitable Operations Combined with Flexible Capex

  • Corporate Presentation www.cencosud.com 7

    Target Shopper Competition

    Middle to High Income Consumers Emerging Middle Class Wide Assortment of Imported Goods Marketing Sophistication of the Consumer Excellence in Perishables

    Quality of Service Spotless Stores Willing to Pay Extra for Service Looking for the Best Products Looks for a Great Shopping Experience

    Supermarkets and hypermarkets Specialty Stores

    The Value Proposal: Brands for Quality and Service

    C o

    n su

    m e

    r B

    ra n

    d s

  • Corporate Presentation www.cencosud.com 8

    Target Shopper Competition

    Middle to Low Income Consumers Quality in Perishables Promotional Pricing Strategy & Intense Marketing Proximity

    Shopper Seeks Quality Seeking Clean Stores On a Budget Not looking for long lines at Check out Values the Shopping Experience

    Promotionally Oriented Supermarkets Soft Discounters Informal Channel

    The Value Proposal: Brands for Quality and Price

    C o

    n su

    m e

    r B

    ra n

    d s

  • Corporate Presentation www.cencosud.com 9

    The Cencosud Advantage

    Source: Financial Statements 2013

    Note: Figures in USD at end of year exchange rates

    Cencosud & peers exclude non-food revenue

    Clear Leader in Food Retailing in the Region Powerful Multi-format Business Model Combining Business and Scale

    75%

    2%

    11%

    10%

    3% Supermarkets

    Real Estate

    Home Improvement

    Dstores

    Financial Services

    37%

    25%

    8%

    20%

    10%

    Chile

    Argentina

    Peru

    Brazil

    Colombia

    B

    Y

    C

    O

    U

    N

    T

    R

    Y

    B

    Y

    B

    U

    S

    I

    N

    E

    S

    S

    0,51

    4,23

    3,40

    3,81

    13,42

    1,42

    1,19

    1,75

    3,42

    Colombia

    Peru

    Brasil

    Argentina

    Chile

    Uruguay

  • Corporate Presentation www.cencosud.com 10

    Looking to Maximize Profitability

    • New Joint Venture for Financial Services in Chile

    • Divestiture of Non-Core Assets : Gas Stations & Pharmacies • Unlocking Value for the ramp up of existing projects: Appointment of a

    Corporate Retail Manager to seek inter-business efficiencies • Creation of Special Task Groups for Underperforming Stores: ICU Stores

    Monitored by a seasoned team to speed up store maturity, very successful in Peru.

    • Building a lean Organization: Greater Focus on a Lower Cost Structure. • Growth Trilemma: Matching Capex and Dividends with Future Cashflows

    Thus minimizing Use of Balance Sheet

    • Minimization of Working Capital Needs: Better Inventory Management, Focus on Shrinkage Reduction

  • Corporate Presentation www.cencosud.com 11

    Footprint Rich in profitability and Growth

    Opportunities

    Synergies, Profitability &

    Cash Generation

    Organic

    Growth

    Improvements in

    Traffic & Organic

    Expansion via

    Multi-Format

    Cash cow

    SAP Stabilization

    + Traffic

    Generation

  • Corporate Presentation www.cencosud.com 12

    Corporate Governance & Best Practices

    • Minimum dividend pay-out of 30% of distributable net income as per Chilean

    regulation

    • 2 Board out of 9 Members Nominated by Minority Shareholders

    • Integrated Risk Management / On the Path to Sarbarnes-Oxley Compliance

    • Enforced Policies for Related Party Transactions

    • Code of Business Conduct

    Corporate Social Responsibility

    • Cencosud is a committed to the development of better working

    conditions for its employees.

    • Cencosud works in the development of strong ties with the communities

    where it develops its business activities with the execution of successful

    CSR programs.

  • Corporate Presentation www.cencosud.com 13

    467 20 766 567

    3.089

    -

    868 377

    747 1.187

    1.290

    795 425

    2008 2009 2010 2011 2012 2013 2014

    Inorganic OrganicCapex (Figures in USD million)

    Country Supermarkets HI D-Stores DCs Total m2 Investment

    Argentina 3 3 - 1 20,000 USD 25 MM

    Brazil 10 - - 1 23,000 USD 41 MM

    Chile