Upload
others
View
9
Download
0
Embed Size (px)
Citation preview
Earnings
Presentation
Q4’2014
February, 2015
This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities.
This presentation may include forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current
beliefs and expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and
assumptions, including, among other things, general economic, political and business conditions, both in Peru and in Latin America as a whole. The words “believes”, “may”, “will”, “estimates”, “continues”,
“anticipates”, “intends”, “expects”, and similar words are intended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new
information, future events or other factors.
In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Therefore, our actual results could differ substantially from those
anticipated in our forward-looking statements.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a
substitute for the exercise of their own judgment. We and our affiliates, agents, directors, employees and advisors 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 material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent
that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information
in this material.
2
AGENDA
Q4’14 RESULTS BY SEGMENT
2014 HIGHLIGHTS01
02
03
04
WHAT WE ARE DOING
WHAT TO EXPECT IN 2015-2017
01
2014 HIGHLIGHTS
66
21
63
113
Q4'13 Q4'14 2013 2014
160 202
475
604
Q4'13 Q4'14 2013 2014
1,492 1,738
5,322
6,147
Q4'13 Q4'14 2013 2014
Margin 1.2% 1.8%4.4% 1.2%
2013 Consolidated Results Million Soles (S/. mm)
Full Year 2014 Highlights Revenues
Margin 8.9% 9.8%10.7% 11.6%
Double digit growth in Revenues, Adj. EBITDA, and Net
Income vs. 2013
New corporate structure allowing its segments to have
independent capital structures and more transparency
Refinanced debt to reduce cost of debt (US$ 12 mm in
annual savings from lower interest expenses)
Increase in fair value of investment properties of
S/. 138.4 mm and exchange loss of S/.114.5 mm
Increase in EPS from S/. 0.6 to S/. 1.1
5
2014 Consolidated HighlightsMillion Soles (S/. mm)
01
Adj. EBITDA Net Income
66% 67%
65%64%
34% 33%
35%
36%
Q4'13 Q4'14 2013 2014
01
InRetail Shopping MallsInRetail Consumer
Financial Results by SegmentMillion Soles (S/. mm)
6
66% 64%
58% 56%34% 36%
42%
44%
Q4'13 Q4'14 2013 2014
Revenues Revenues
63
110
215
349
Q4'13 Q4'14 2013 2014
38
68
115
202
Q4'13 Q4'14 2013 2014
Adj. EBITDA
Net Rental Margin 75.9% 80.2%82.9% 82.4%7.1% 7.1%8.5% 8.2%Margin
Adj. EBITDA
1,4391,633
5,142
5,833
Supermarkets Pharmacies
123133
364415
InRetail Peru 2014 Highlights
7
SUPERMARKETS
• Opened 28k sqm of sales area (+8.5% net of closings)
• Opened 6 supermarkets (3 in Lima / 3 in
provinces)
• Expanded 5 supermarkets
• Refurbished 11 Plaza Vea stores
• Closed 3 Economax stores
• SSS growth of 4.4%
• Captured efficiencies in SG&A due to multiple
initiatives launched
• Launched “Vea Club” to increase customer knowledge
and enhance promotional campaigns
• Successfuly integrated dry-food and non-food
warehouses
• Completed upgrade of cash registers to NCR platform,
improving customers’ experience at point of sale
• Ranked 8th in GPTW Ranking
01
• Opened 124 pharmacies (37 in Lima / 87 in
provinces); 12 pharmacies closed
• SSS growth of 8.5%
• Increased penetration of high margin products
(+2.7pp)
• Reduced inventory in 32 days (85 days as of
December 2014), freeing up cash
• Sold old distribution center for S/. 12.9 MM,
generating an extraordinary income of S/. 6.8 MM
8
PHARMACIES
01
InRetail Peru 2014 Highlights
9
SHOPPING MALLS
• Inaugurated Real Plaza Salaverry in May 2014 (+73k
sqm of GLA)
• Acquired of Real Plaza Centro Cívico in August 2014
(+41k sqm of GLA) for S/. 190 MM, 7X EBITDA, and
initiated expansion of 8k sqm for a department store
• Expanded 41k sqm of GLA
• Acquired Puruchuco’s landplot for S/. 100 MM for the
development of a new shopping mall
• Increases in mark-to-market of S/. 138 MM in 2014
mainly as a result of new malls in operation and lower
cost of debt
01
InRetail Peru 2014 Highlights
02
Q4´14 RESULTS BY
SEGMENT
02
Q4´14 RESULTS BY
SEGMENT
• +5.9% SSS vs. Q4’14 (+8.5% SSS 2014)
• 50 pharmacies added to the network in Q4’14, 112 in 2014 (+15.4%), total
837 stores
• Intensive competitive environment and stock liquidation to reduce inventory
impacted our sales per ticket, partially compensated by an increased in SSS
transactions
• Expansion of 3 malls in Q4’14 (+11,120 sqm); opening of Real Plaza
Salaverry and acquistion of Real Plaza Centro Cívico in 2014 (+154,880
sqm; +38.9%); total 553,431sqm (607,120 sqm including third party’s
properties)
• +4.9% SSS vs. Q4’13 (+4.4% SSS 2014)
• 2 new stores, 3 expansions and one Economax store closed in Q4’14 (+8k
sqm); 6 new stores, 5 expansions and 3 Economax stores closed in 2014
(+21k sqm, +8.5%), total 101 (269,718 sqm)
• Aggressive and innovative promotional campaigns in Q4’14
2013 Consolidated Results Million Soles (S/. mm)
Revenues Growth of 16.5% vs Q4’13Million Soles (S/. mm)
Supermarkets
Pharmacies
Shopping Malls
Pharmacies
33.7%
Shopping Malls
5.6%
2014 Revenues Breakdown
Revenues
Supermarkets
60.7%
11
Million S/. Var % Var %
Q4'13 2013
InRetail Consumer 1,633 13.5% 5,833 13.4%
Supermarkets 1,094 14.8% 3,757 12.9%
Pharmacies 541 11.0% 2,086 14.4%
InRetail Shopping Malls 110 73.0% 349 62.7%
Total Revenues 1,738 16.5% 6,147 15.5%
Q4'14 2014Million S/.
02
227 227 228
249 249 253
261270
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Quarterly Openings and SSS by Segment
Openings Same Store Sales
12
-0.7%
-2.1%
2.1%2.4%
4.8%5.2%
2.6%
4.9%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
-1.1%
0.4%
4.0%
6.9%
9.3%
10.8%
8.2%
5.9%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Pharmacies
Supermarkets
297 319 336 399 425
499 542 553
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
610 636675
725 731 754787
837
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Shopping Malls
GLA (‘000 sqm)
Pharmacies
N° Stores
Supermarkets
Sales Area (‘000 sqm)
N° Stores 88 88 90 98 98 98 100 101
N° Malls 13 13 13 15 15 16 17 17
02
Million S/. Var % Var %
Q4'13 2013
InRetail Consumer 133 8.2% 8.7% 415 7.1% 13.9%
Supermarkets 85 7.8% 4.6% 232 6.2% 10.0%
Pharmacies 49 9.0% 17.6% 185 8.9% 19.5%
InRetail Shopping Malls 68 62.0% 77.8% 202 57.8% 75.5%
Total Adj. EBITDA 202 11.6% 26.3% 604 9.8% 27.0%
Q4'14 % Rev 2014 % Rev
• +77.8% growth vs. Q4’13; +75.5% growth vs. 2013
• Net rental Mg. 82.4% vs. 82.9% in Q4’13; 80.2% in 2014 vs. 75.9% in 2013
• Higher margin driven by recent opening of shopping malls and dilution of
fixed costs, offset by higher SG&A
• +4.6% growth vs. Q4’13; +10.0% growth vs. 2013
• EBITDA Mg. 7.8% vs. 8.5% in Q4’13; 6.2% in 2014 vs. 6.3% in 2013
• Lower gross margin in Q4’14 due to intensive promotional campaigns and
lower store contribution from suppliers, despite efficiencies in SG&A
• +17.6% growth vs. Q4’13; +19.5% growth vs. 2013
• EBITDA Mg. 9.0% vs. 8.5% in Q4’13; 8.9% in 2014 vs. 8.5% 2013
• Higher gross margin due to an increase in penetration of high margin
products, logistic efficiencies and extraordinary income, compensated
lower margin in regular products, an increase in rental expenses and
personnel expenses associated to higher commissions to our salesforce
Adjusted EBITDA Growth of 26.3% vs Q4’13Million Soles (S/. mm)
Adj. EBITDA
2014 Adj. EBITDA Breakdown
Supermarkets
37.4%
13
Supermarkets
Pharmacies
Shopping Malls
Shopping Malls
32.7%
Pharmacies
29.9%
Million S/.
02
26 24 26
38 36 43
55
68
Q1 Q2 Q3 Q4
2013 2014
45 42 42
81
55 44
48
85
Q1 Q2 Q3 Q4
2013 2014
104 101 110
160
117 131
154
202
Q1 Q2 Q3 Q4
2013 2014
34 36
43 41 39
46 52
49
Q1 Q2 Q3 Q4
2013 2014
Adjusted EBITDA EvolutionMillion Soles (S/. mm)
InRetail Consolidated (+27.0 YoY)
Pharmacies (+19.5% YoY)
Supermarkets (+10.0% YoY)
Shopping Malls (+75.5% YoY)
14
02
Consolidated Net Income
In Q4’14 we registered non-recurring expenses of
S/.96.6 million associated to the premium paid for
refinancing debt
In 2014, we registered an increase in fair value of
investment properties generated by InRetail Shopping
Malls explained by: (i) a reduction in cost of debt, (ii)
opening of Real Plaza Salaverry
Mark-to-market gain of S/. 96.6 million in Q4’14
vs. S/. 29.8 million in Q4’13
Mark-to-market gain of S/. 138.4 million in 2014
vs. S/. 44.6 million in 2013
Foreign exchange loss generated by the exposure of
our long-term financial obligations:
Exchange loss of S/. 57.6 million in Q4’14 vs.
loss of S/. 8.8 million in Q4’13
Exchange loss of S/. 114.5 million in 2014 vs.
loss of S/. 125.2 million in 2013
Net Income Growth of 79.6% vs 2013Million Soles (S/. mm)
15
66
21
63
113
Q4'13 Q4'14 2013 2014
1.2% 1.8%4.4% 1.2%Net
Margin
02
Consolidated Capex and Financial DebtMillion Soles (S/. mm)
16
Financial Debt Capex
658
1,034
792
2012 2013 2014
Capex by Quarter 2014
114
242
333
104
Q1'14 Q2'14 Q3'14 Q4'14
4.0x
3.6x 3.5x
4.0x 4.0x
1.3x
2.9x3.1x
3.6x3.6x
2012 2013 LTM Q2'14 LTM Q3'14 2014
Debt/EBITDA Net Debt/EBITDA
InRetail
Shopping Malls
Bond Issuances
InRetail
Consumer
Bond Issuances
Debt/EBITDA Net Debt/EBITDA
Debt
Cash
Net
Debt
1,668
1,125
542
1,722
324
1,398
2,226
238
2,028
2,446
285
2,160
1,827
201
1,627
02
InRetail Consumer
Debt / EBITDA: 4.0xNet Debt / EBITDA: 3.6x
Total Consolidated Debt: S/. 2,446 mm
17
Debt by Segments As of December 31st, 2014
Debt
Cash
Net
Debt
1,3471,1681,095976
168131215306
1,1791,036880670
1,1111,099624691
1248681656
9871,01354335
2.9x 3.0x2.9x 2.9x
3.2x
2.0x
2.4x2.5x 2.6x
2.8x
2012 2013 LTM Q2'14 LTM Q3'14 2014
Debt/EBITDA Net Debt/EBITDA
8.2x
5.4x5.0x
6.4x
5.5x
0.4x
4.7x 4.6x
5.9x
4.9x
2012 2013 LTM Q2'14 LTM Q3'14 2014
Debt/EBITDA Net Debt/EBITDA
716
63
653
1,111
131
981
Bond Issuances
Bond Issuances
InRetail Shopping MallsMillion S/. Million S/.
02
03
WHAT WE
ARE DOING
Continue remodeling and refurbishing stores
Lower expenses with emphasis on improving
productivity and efficiencies on our stores
and distribution centers
Continue expanding in Lima and provinces
with 12,000 sqm
19
03
Supermarkets Segment in 2015
1
2Increase gross margin with more efficient
promotional campaigns leveraging Vea Club’s
data and higher penetration of Tarjeta Oh!
3
4
Continue developing and increasing penetration
of high margin products
Lower expenses by capturing additional
supply chain and store efficiencies
Launch digital and e-commerce strategies
Continue improving our assisted sales model
and cross selling opportunities supported on Big
Data management
20
03
Pharmacies Segment in 2015
1
2
3
4
5 Expand in Lima and Provinces with 100 new stores
5
Continue improving performance of malls
• Tenant Mix
• Operational efficiencies
• Marketing attractions
Implement IT solutions to enhance
shopping experience
Strengthen and build new long-term
relationships with local and international
tenants
Prepare to initiate construction of
Puruchuco Shopping Mall
21
03
Shopping Malls Segment in 2015
1Mobile APP
Continue building a portfolio of premium
locations for future malls
2
3
4
04
WHAT TO EXPECT
IN 2015-2017
23
Puruchuco Shopping Mall
04
What to Expect in 2015-2017
Secured Growth in 2015
12k sqm of additional supermarkets sales area in 2015
(+4.4% growth)
100 new pharmacies in 2015
10k sqm of additional GLA from shopping mall’s expansions
Development of Puruchuco Shopping Mall:
+110k sqm of additional GLA expected for 2017
Total estimated investment of US$ 150 MM
US$ 700 million for CAPEX in 2015-2017
By Segments
By type of investment
23
40.3%
7.3%
52.4%
72.5%
21.6%
6.0%
Supermarkets
Pharmacies
Shopping Malls
New stores, malls,
landbank
Logistics, IT, other
Refurbishing of stores,
mall expansions
For more information please contact:
www.inretail.pe