SACI FALABELLA CORPORATE PRESENTATION NOVEMBER 2015

Transcription

1 SACI FALABELLA CORPORATE PRESENTATION NOVEMBER 2015

2 CONTENTS The Company Key Investment Highlights Consolidated Statements Corporate Structure Overview per Business Unit

3 FIVE BUSINESS UNITS 126 YEARS OF HISTORY DEPARTMENT STORES HOME IMPROVEMENT SUPERMARKETS FINANCIAL SERVICES REAL ESTATE US$ 3,768 m Revenues US$ 5,339m Revenues 1 US$ 1,852 m Revenues US$ 5,667 m Loan Book 2.0 million m 2 GLA stores 246 stores 102 stores 4.8 million CMR accounts 1 million m 2 of additional GLA in free standing stores in the region. 20 / 19 Malls / Power & Shopping Centers Note: Revenues as of September 2015 LTM. Number of stores/malls as of October 30 th Number of CMR accounts as of September FX rates as of October 1 st, 2015 ( CLP/US$). Data includes Sodimac Colombia and Aventura Plaza, which do not consolidate. 1. Does not include Uruguay revenue. 2. The Falabella Group owns 1,007,000 m 2 of additional GLA in free standing stores across the region. 3

4 PRESENCE IN 6 COUNTRIES IN LATIN AMERICA DEPARTMENT STORES HOME IMPROVEMENT SUPERMARKETS FINANCIAL SERVICES REAL ESTATE 45 stores 85 stores 53 stores 2,351,000 active 312,000 m 2 703,000 m 2 187,000 m 2 CMR cards 26 stores 57 stores 49 stores 1,036,000 active 162,000 m 2 372,000 m 2 182,000 m 2 CMR cards 25 malls 1,422,000 m 2 GLA 13 malls 521,000 m 2 GLA 18 stores 35 stores 883,000 active 114,000 m 2 338,000 m 2 CMR cards 1 mall 26,000 m 2 GLA 11 stores 8 stores 512,000 active 58,000 m 2 84,000 m 2 CMR cards 57 stores 131,000 m 2 2 store 19,000 m 2 Note: Number of stores and sales area as of September 30 th Number of CMR accounts with balance and employees as of September Includes Sodimac Colombia and Aventura Plaza in Peru, which the Company does not consolidate. 4

5 KEY FIGURES Main Figures Total Revenues Loan Book CMR Accounts 446 stores 39 malls 11,731 M US$ 5,667 M US$ +4,782,000 2,662,000 m 2 sales area 1,975,000 m 2 GLA Mix by Country (LTM) Employees in the Region Total: 102,800 6% 7% 2% <1% 21% 4% 4% +14, ,800 +3,400 26% Revenues 58% EBITDA 71% +50, ,600 Note: Revenues and EBIDA does not consider Sodimac Colombia and Aventura Plaza in Peru, which do not consolidate. 5

6 CONTENTS The Company Key Investment Highlights Consolidated Statements Corporate Structure Overview per Business Unit

7 KEY INVESTMENT HIGHLIGHTS Leadership in Latam across formats Responsible growth strategy Differentiating brands Customer centric strategy Sustainable business development Experienced management team Corporate governance practices 7

8 1. LEADERSHIP IN LATAM ACROSS FORMATS Market Position 1 Department Stores Home Improvement Supermarkets Financial Services Real Estate Revenues Market position Revenues Market position Revenues Market position CMR Accounts Market position Market position 1,895 M US$ #1 2,773 M US$ #1 934 M US$ #4 2,351,000 #1 25 Shopping Malls GLA 1.4 M m² #1 833 M US$ 520 M US$ #1 #1 921 M US$ 1,129 M US$ #1 #1 918 M US$ #3 1,036, ,000 #1 13 Shopping Malls GLA 0.5 M m² 1 Shopping Mall #1 521 M US$ Only relevant player 264 M US$ #2 512, M US$ #4 Sales / m 2 (US$) 2 Department Stores in Chile Home Improvement in Chile Supermarkets in Peru 1. Revenues as of September 2015 LTM. Number of CMR accounts, malls and GLA as of September FX rates as of October 1 st, 2015 ( CLP/US$). 2. Sales per square meter as of September FX rates as of October 1 st, 2015 (698,72 CLP/US$). Tottus sales area excludes check out area, in order to compare with peer s reported sales per square meter. 8

9 2. RESPONSIBLE GROWTH STRATEGY Organic Initiatives Sodimac opens first Homecenter stores in Brazil and Uruguay Falabella launches CMR Entry to Argentina and Colombia Falabella.com launched in Chile First Tottus opened in Peru Falabella & CMR enter Colombia Launch of Homy Launch of Móvil Falabella Sodimac.com launched in Peru Falabella develops its first shopping center Mall Plaza Banco Falabella launched in Chile Sodimac.com launched in Chile Falabella.com launched in Argentina Falabella.com launched in Colombia Tottus.com launched in Chile Sodimac.com launched in Colombia Tottus.com launched in Peru Mergers & Acquisitions Falabella & Sodimac merge Sodimac acquires Imperial in Chile Sodimac acquires Dicico in Brazil Sodimac acquires Maestro in Peru Falabella acquires Saga Falabella acquires San Francisco in Chile Falabella acquires Casa Estrella in Colombia Mall Plaza acquires Mall Las Americas in Chile 9

10 INVESTMENT PLAN Investment Plan (As of January 2015) US$ 4.4 bn investment for the next 4 years 140 stores 11 malls Investment (US$ m) Store and Mall Openings Stores Malls Note: Figures include 100% of the investment in fixed assets, including Sodimac Colombia and Aventura Plaza, which the Falabella Group does not consolidate in the Financial Statements. 10

11 3. DIFFERENTIATING BRANDS Private Labels Exclusive Brands 11

12 4. CUSTOMER CENTRIC STRATEGY Our Customers million CMR accounts with a balance +290 million transactions in our retail businesses 350 million visits to our shopping centers in the region +1.4 million bank accounts with Banco Falabella 300,000 Passengers travelled using Viajes Falabella Customer knowledge through consistent interaction What does she like When does she purchase Websites Commercial Platform Self Service Stations How much does she spend What does she buy Mobile Apps ATM Means of payment Where does she purchase Social Networks Points of Sale Contact Center 1. Number of CMR accounts as of September Other data as of December

13 5. EXPERIENCED MANAGEMENT TEAM Main Executives CEO - 20 years - 16 years in average in the Group CFO - 9 years - Chief Planning and Development Officer - 6 years - Peru Country Manager - 26 years - Colombia Country Manager - 20 years - Argentina Country Manager - 16 years - Brazil Country Manager - 2 years - CIO - 23 years - Department Stores GM - 15 years - Home Improvement GM - 13 years - Supermarkets GM - 13 years - Financial Services GM - 6 years - Mall Plaza GM - 25 years - Open Plaza GM - 20 years - General Counsel - 20 years - Employees +102,800 employees 46% women +75,000 employees evaluated +3.6 million hours of training 30% of employees belong to a union. 53% in Chile. Note: Number of employees as of September Other figures as of December

14 6. SUSTAINABLE BUSINESS DEVELOPMENT Community Haciendo Escuela 91schools +81,000 students benefited Círculo de Especialistas +350,000 specialist workers Financial Education Program 57 courses taught in 17 schools from Haciendo Escuela Healthy Eating Program Implemented in low- income schools Biblioteca Viva 9 libraries inside malls 155,000 materials provided Suppliers Environment +20,000 suppliers 50% SMEs 18 certified stores and 1 shopping center with LEED pre-certification Partnership with Falabella Sodimac 30 stores and 19 eco-friendly shopping centers Note: Information as of December

15 7. CORPORATE GOVERNANCE PRACTICES Board of Directors Board Committee Chairman Carlo Solari Donaggio 2014 Vice-Chairman Juan Carlos Cortés Solari 2014 Audit Committee Directors José Luis del Rio Goudie 2003 Sergio Cardone Solari 1986 Carolina del Rio Goudie 2011 María Cecilia Karlezi Solari 2003 Paola Cuneo Queirolo 2014 Carlos Alberto Heller Solari 2002 Independent Director Hernán Büchi Buc 1996 Compensation and Talent Committee Strategy Committee Free Float 19% Presence of an independent director at holding level and in relevant subsidiaries Controlling Group consisting of 7 families Controlling Group 81% Note: Information as of 30 st September

16 CONTENTS The Company Key Investment Highlights Consolidated Statements Corporate Structure Overview per Business Unit

17 CONSOLIDATED STATEMENTS Income Statement (USD Million) 3Q14 3Q15 Var % 9M14 9M15 Var % Total Rev enues 2,536 2, % 7,605 8, % Gross Profit 890 1, % 2,645 3, % Gross Margin 35.1% 35.5% 34.8% 35.2% SG&A Expenses (667) (756) 13.4% (1,916) (2,185) 14.0% SG&A / Revenues (26.3%) (26.5%) (25.2%) (25.7%) Operational Income % % Operational Margin 8.8% 9.0% 9.6% 9.6% Depreciation + Amortization EBITDA % 941 1, % EBITDA Margin 11.7% 12.0% 12.4% 12.5% Other Income / (Expenses) 1 (1) 2 (6) Net Financial Income / (Cost) (47) (63) (162) (175) Profit / (Loss) in Associates Exchange Rate Differences (10) (9) (33) (24) Non-Operating Profit (47) (65) 37.3% (167) (180) 7.5% Profit Before Tax Expenses % % Income Tax (42) (40) (117) (139) Minority Interest (17) (17) (44) (44) Net Profit / (Loss) % % Net Margin 4.6% 4.7% 5.3% 5.3% Note: Financial information at FX rates as of October 1st, 2015 ( CLP/US$). 17

18 CONSOLIDATED STATEMENTS Balance Sheet (USD Million) Dec 14 Sept 15 (USD Million) Dec 14 Sept 15 Cash & cash equiv alents Other current financial liabilities 1,054 1,076 Current trade & other receiv ables 2,104 2,142 Current trade & other payables 1,383 1,310 Inv entories 1,459 1,694 Others Others Total Non-Banking Current Assets 4,105 4,392 Total Non-Banking Current Liabilities 2,846 2,754 Non-Current trade & other receiv ables Other non-current financial liabilities 3,315 3,752 Goodwill Others PP&E & Inv estment properties 6,068 6,328 Others 815 1,041 Total Non-Banking Non-Current Assets 7,845 8,320 Total Non-Banking Non-Current Liab. 3,944 4,388 Total Non-Banking Operations Assets 11,950 12,712 Total Non-Banking Oper. Liabilities 6,790 7,142 Loans & accounts receiv able from clients 3,121 3,399 Total Banking Oper. Liabilities 3,527 4,165 Others 1,169 1,504 TOTAL LIABILITIES 10,317 11,307 Total Banking Operations Assets 4,290 4,903 Shareholders' Equity 5,923 6,309 TOTAL ASSETS 16,240 17,615 TOTAL EQUITY & LIABILITIES 16,240 17,615 Note: Financial information at FX rate as of October 1st, 2015 ( CLP/US$). 18

19 FINANCIAL SITUATION Net Financial Debt / EBITDA w/o Banking Operations (times) Debt Profile w/o Banking Operations Maestro effect 18% Short-term Leverage w/o Banking Operations (times) 4,720 M US$ Financial Debt 1 w/o Banks 47% Financial institutions 53% Public Bonds 5.36 years duration Note: Financial information at FX rate as of October 1st, 2015 ( CLP/US$). 1. Does not include accrued interests 19

20 CONTENTS The Company Key Investment Highlights Consolidated Statements Corporate Structure Overview per Business Unit

21 CORPORATE STRUCTURE SACI Falabella 94% Chile Peru 1 Argentina Colombia Brazil Uruguay Falabella 100% Saga Falab. 95% Falabella 100% Falabella 65% Sodimac 100% Sodimac 100% Sodimac 100% Sodimac 49% 2 Dicico 50.1% Sodimac 100% Imperial 60% Maestro 100% Tottus 88% Tottus 100% CMR 100% Banco Falab.100% CMR 100% Banco Falab. 65% Banco Falab.100% Open Plaza 100% Mall Plaza 59.3% Open Plaza 100% Mall Plaza Avent. Plaza 40% 2 100% 20% 1 Through Falabella Perú S.A.A.. 2 Does not consolidate. 21

22 CONTENTS The Company Key Investment Highlights Consolidated Statements Corporate Structure Overview per Business Unit

23 DEPARTMENT STORES Business Overview 100 stores in Chile, Peru, Colombia and Argentina Main categories: apparel, home electronics and home decor Diverse portfolio of private brands, second generation and exclusive brands, in addition to international brands Local market customization Differentiation Leading online retailer Operates specialty stores for exclusive and second generation apparel and footwear brands Private brands Profitability Regional Footprint Revenues Sales / m 2 1 (US$ m, JSeptember 2015 LTM) (US$, September 2015 LTM) Chile Peru 45 Stores 26 Stores Total: 3,768 US$ m Colombia 18 Stores Argentina 11 Stores Note: Figures in US$ converted using the October 1st, 2015 ( CLP/US$). Number of stores as of September Sales LTM divided by average m 2 23

24 HOME IMPROVEMENT Business Overview 244 stores in Chile, Peru, Colombia, Argentina, Brazil and Uruguay Main categories: construction materials and home improvement products, carpentry, design furniture and home terminations Construction companies Contractors & specialists Six formats: Homecenter, Sodimac Constructor, Imperial, Homy, Dicico and Maestro Expertise in selling directly to construction sector players and large companies Strong online sales strategy DIY Families Regional Footprint Revenues Sales / m 2 1 Chile Peru 85 Stores 57 Stores (US$ m, September 2015 LTM) Total 2 : 5,339 US$ m (US$, September 2015 LTM) Colombia 35 Stores Argentina 8 Stores Brazil 57 Stores Uruguay 2 Stores Note: Figures in US$ converted using the October 1st, 2015 exchange rate ( CLP/US$). Number of stores as of September Sales LTM divided by average m 2 2, Does not include revenue from Uruguay. 24

25 SUPERMARKETS Business Overview Started operations in 2002 in Peru under Tottus brand and entered Chilean market in 2004 with the acquisition of San Francisco Operates 102 stores in Chile and Peru, with three formats: hypermarkets, supermarkets and Hiperbodega Precio1 Increased penetration of private labels E-commerce platform Supermarkets Hypermarkets Bodegas Price positioning Weekly deals Private label products Regional Footprint Revenues (US$ m, September 2015 LTM) Sales / m 2 1 (US$, September 2015 LTM) Chile Peru 53 Stores 49 Stores Total: 1,852 US$ m Note: Figures in US$ converted using the October 1st, 2015 exchange rate ( CLP/US$). Number of stores as of September Sales LTM divided by average m 2 Sales area considered for Tottus does not include the cash area in order to be comparable with peer s sales area. 25

26 FINANCIAL SERVICES Business Overview Falabella Financiero offers a mix of integrated financial products and services. Provides customers access to credit, combining the traditional financial business with the proximity to customers through retail formats. Five business units: CMR Falabella (credit card), Banco Falabella (bank), Seguros Falabella (insurance broker), Viajes Falabella (travel agency) and Móvil Falabella (mobile virtual operator) Operates in Chile, Peru, Colombia and Argentina Loyalty Frequency Immediate needs Integrated offering Transparency Convenience Simplicity Regional Footprint Gross Loan Portfolio Loan Loss Provision 1 (US$ m, September 2015) (%, September 2015) Chile Peru Colombia Argentina 2.3 m CMR accounts 99 bank branches 1.0 m CMR accounts 92 bank branches 0.9 m CMR accounts 54 bank branches 0.5 m CMR accounts 18 bank branches Total: 5,667 US$ m 1. Per local regulation (not comparable across the countries) Note: Figures in US$ converted using the October 1st, 2015 exchange rate ( CLP/US$). 26

27 REAL ESTATE Business Overview Largest operator in Chile and Peru, and one of the leaders in Latin America: Mall Plaza: Operates large shopping malls in Chile, Peru (through Aventura Plaza) and Colombia. Sustainable construction Entertainment Shopping Culture Open Plaza: Operates small shopping centers with 2 or 3 anchor stores, as well as other third-party minor stores. Meeting places Urban centers Regional Footprint Integrated Offering 2 # Shopping Malls '000 GLA Sep-14 Sep-15 Sep-14 Sep-15 Mall Plaza ,136 1,195 Open Plaza CHILE ,371 1,427 +2,200 specialty stores +390 restaurants 98 cinema screens Aventura Plaza Open Plaza PERU medical centers 9 public libraries 16 gyms Mall Plaza COLOMBIA TOTAL ,887 1, game areas 11 educational institutions 3 exhibition rooms Free Standing Stores , Owned by the company throughout the region. 2. Information for Mall Plaza shopping centers as of December

28 CONTACT INFORMATION Phone: Jordi Gaju Chief Development Officer jgaju@falabella.cl Alejandro González Chief Financial Officer alejgonzalez@falabella.cl Isabel Darrigrandi Head of IR idarrigrandi@falabella.cl María Paz Fernández IR Analyst mpafernandez@falabella.cl

29 DISCLAIMER This presentation contains forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and its management. Investors are cautioned that any such forward-looking statements are not guarantee of future performance and involve a number of risks and uncertainties including, but not limited to, the risks detailed in the Company s financial statements, and the fact that actual results could differ materially from those indicated by such forward-looking statements.

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