2Q18 Earnings Presentation

Transcription

1 Earnings Presentation

2 2 Operating Strategies Famsa Mexico..6 AGENDA Famsa USA....8 Banco Famsa Consolidated Results..14 Financial Position Items. 19

3 Operating Strategies

4 1. Strategies: a) Revamping in origination procedures on a per region basis. Progressively converted into an agile and result-driven platform. b) Significant increase in the participation of customers belonging to the segments we serve 64.6% of clients belonging from the formal sector. I. Operating Front c) Important contribution of the canvass channel and fully capitalization on seasonal events. Successful advertising campaigns, which together with our strengthened canvass channel, have allowed us to increase our commercial reach and perform growth in most of our categories. d) Establishment of strategic partnership. In order to streamline the origination process of SMEs loans and broaden geographic presence in markets with no banking branches, BAF entered into an alliance with PitchBull, a fintech platform. e) Expansion of the commercial outreach in the United States. A higher penetration in digital media was achieved without neglecting traditional media such as TV and radio. Additionally, the scheme of payments and commissions was upgraded to improve operational efficiency IV. Cost Reduction 4

5 1. Strategies: II. Financial Front a) Strengthening of the financial structure. Grupo Famsa contracted a second credit facility with Bancomext, for Ps.1,000 million with a 7 year-term and step-up semi-annual coupon payments. Proceeds will mainly be destined to amortize liabilities with financial cost. b) Progress in initiatives for higher liquidity. During, two properties were sold for Ps.269 million and a significant progress was made in the commercialization of another 5, for Ps.300 million (titling process is expected to end during 3Q18). Therefore, the Ps.800 million target for 2018 of the asset monetization plan is reaffirmed. IV. Cost Reduction 5

6 Famsa Mexico

7 120.00% % 80.00% 60.00% 40.00% 20.00% 0.00% 2. Famsa Mexico During outstands the core categories of Computers (+37.0% YoY), Electronics (+18.8% YoY) and Mobile Phones (+16.7% YoY) Net Sales Sales by product mix % 3,793 2Q % Same-Store Sales (SSS) (Annual growth) 4,399 7,253 8,442 YTD 17 YTD % 12.1% 2.1% 2.4% 6.4% 6.0% 8.9% 9.2% 10.8% 10.9% 13.8% 13.9% 9.2% 9.0% 12.5% 10.1% 2.6% 6.7% 9.0% 2.8% 6.4% 9.4% 10.9% 11.3% 13.6% 13.5% 9.4% 9.5% Others Computers Motorcycles Electronics Mobile Phones Appliances 6.9% 6.8% 10.3% 6.0% 7.2% 9.3% 16.5% 15.2% 36.8% 36.5% 35.7% 37.1% Furniture Loans 2.6% Famsa MX 2Q17 YTD 17 YTD 18 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 7

8 Famsa USA

9 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 3. Famsa USA Famsa USA registered a 3.1% YoY increase in USD Same Store Sales (SSS). Sales by product mix 5.0% 5.1% 2.2% 2.0% 6.1% 4.1% 14.3% 18.7% 10.9% 10.3% 12.7% 12.9% 120.0% 100.0% 80.0% 60.0% 5.0% 4.7% 2.2% 2.1% 5.1% 4.1% 15.1% 18.7% 11.2% 9.8% 12.7% 13.1% Others Computers Famsa to Famsa Loans Net Sales MXP: -1.8% USD: - 5.5% MXP: -10.5% USD: - 8.7% % Electronics 48.2% 46.6% 20.0% 48.8% 47.5% Appliances 2Q17 YTD 17 YTD 18 Furniture 2Q17 0.0% YTD 17 YTD 18 9

10 Banco Famsa

11 4. Banco Famsa Bank deposits as of June 30, 2018 represented ~74% of the Company s total funding. Loans Famsa card, credit cards, microcredits, SMEs, Fovisste, enterprises, Credinero and Prendinero Bank Deposits % Services e-banking, ATMs, payroll, TPVs, remittances, money orders and insurance Deposits Savings, payroll, checks and investments Bank Deposits Mix 2Q17 13% 14% 73% 80% 10% 10% 23,295 24,491 24,994 26,286 27, % 6.3% 6.7% 6.6% 6.9% Demand Deposits Opnl Availability Time Deposits Demand Deposits Opnl Availability Time Deposits 2Q17 3Q17 4Q17 1Q18 Funding Cost 11

12 4. Banco Famsa During, Banco Famsa established an strategic alliance with a Fintech platform, in order to speed up the origination process for SMEs loans Portfolio of Loans* Portfolio of Loans Mix % 2Q17 4,537 4,843 4,959 5,152 5,653 17% 12% 12% 16% 16% 16% 59% 52% 0.9% 0.9% 1.5% 1.1% 1.0% 2Q17 3Q17 4Q17 1Q18 Commercial NPL ratio PYME Microcredit Corporate Others Financial *Gross Balance Source: Banco Famsa 12

13 4. Banco Famsa Non-performing Loans Ratio (NPL)** 9.1% 8.8% 8.5% 8.5% 8.3% 8.3% 8.4% 8.4% 9.2% Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Sep'17 Dec'17 Mar'18 Jun'18 **Includes credits discounted by payroll Source: Banco Famsa 13

14 Consolidated Results

15 5. Consolidated Results Net Sales Net Sales by country % 9,334 Same Store Sales (SSS) 8, % 2Q % 11.3% Famsa USA Total (0.3%) +14.1% Famsa Mexico +2.6% +15.2% Famsa USA * (25.5%) +3.1% 4, % 4, % 88.7% 91.1% Famsa MX *SSS calculated in US dollars, excluding exchange rate effect 89.6% 91.0% 2Q17 YTD 17 YTD 18 15

16 5. Consolidated Results Net Sales Net Sales by product mix Business-units Retail-area 11.9% 11.8% 2.1% 2.4% 5.7% 5.5% 9.1% 9.3% 9.7% 9.9% 13.7% 13.8% 13.3% 12.4% 11.8% 9.9% 2.6% 2.7% 5.9% 5.8% 9.3% 13.9% 9.5% 9.7% 10.2% 13.5% 13.5% 12.9% Others Computers Motorcycles Electronics Mobile Phones -5.2% % Pawnshop Branches Banking Branches PL USA Branches Stores USA Stores MX Appliances % 34.9% 33.3% 35.5% Furniture 2Q17 2Q17-m2* -m2* Loans *m 2 in thousands. 2Q17 YTD 17 YTD 18 16

17 5. Consolidated Results % Gross Profit + 9.9% EBITDA 9.6% 9.9% % 44.6% 791 4, % 44.1% 43.5% 2,118 1, ,912 1,680 3, , , % 8.8% 9.1% Q17 YTD 17 YTD 18 Famsa USA Famsa MX* *Includes other segments and intercompanies -9-4 *Includes other segments and intercompanies Q17 YTD 17 YTD 18 Famsa USA Famsa MX* 17

18 5. Consolidated Results Financial expenses (1) Net Income Impacted by non-cash items % 8.6% 1.7% 6.2% + 9.8% 6.0% % % 8.9% -0.6% 5.9% 5.9% Q17 YTD 17 YTD Q17 YTD 17 YTD 18 (1) Financial expenses = Interest paid 18

19 Financial Position Items

20 6. Financial Position Items Trade receivables % Inventories % 25,200 2,323 4,360 18,517 28,332 2,181 4,942 21,209 Consumer USA Commercial MX Consumer MX 2, ,156 2, ,441 Famsa USA Famsa MX 4Q17 4Q17 Net debt & bank deposits + 9.4% Stockholders equity + 2.2% 32,377 35,408 7,383 7,904 Net Debt 7,255 7,416 24,994 27,504 Bank Deposits 2.8% 4Q17 4Q17 20

21 6. Financial Position Items: Debt Structure 120% 100% 80% 60% 40% 20% 0% Debt Profile +3.6% 9,026 9,348 32% 33% 52% 54% 16% 13% 4Q17 Debt Securities Credit Lines Foreign Debt 120% 9, % 9,300 80% 9,200 60% 9,100 9,000 40% 8,900 20% 8,800 0% Funding Sources 34,020 36,853 15% 14% 12% 11% 73% 75% 4Q % Bank Deposits Debt Securities* Bank Loans 37,500 37,000 36,500 36,000 35,500 35,000 34,500 34,000 33,500 33,000 32,500 Debt Maturity Schedule * Includes local notes and foreign senior notes. 2, , Debt Securities Credit Lines Foreign Debt 21

22 6. Financial Position Items: Debt Structure Debt Profile: By Currency Debt Profile: By Interest Rate 34% 4Q17 33% 4Q17 35% 34% 66% 67% 65% 66% MXP USD Fixed Rate Floating Rate 22

23 6. Financial Position Items: Proforma Debt Maturities Proforma Debt Maturity Schedule (Amortization of liabilities during July 2018) $3,195 Proforma Gross Debt: $8,990 Decrease in debt during July 2018: $358* $1,826 2, ,092 $ $ Debt Certificates Credit Lines Foreign Debt * Considers amortization of foreign debt of USD$8 million. 23

24 Note on Forward-Looking Statements The material presented below contains certain general information to date regarding Grupo Famsa, S.A.B. Of C.V. (Collectively, "Famsa Group" or the "Company"). The information is showed as a summary form and is not intended to be complete. There is no representation or warranty, express or implied, regarding the accuracy, impartiality or integrity of this information. This presentation contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Grupo Famsa, S.A.B. de C.V. and its subsidiaries may differ from the results expressed in, or implied by, the forward-looking statements set out herein, possibly to a material degree. We warn that an important number of factors could cause that the actual results to differ from the plans, targets, expectations, estimates and intentions expressed in this presentation. In no event shall neither the Company nor any of its affiliates, directors, officers, agents or employees be liable to third parties for any investment or business decision made or for the actions taken based on the information and statements contained in this presentation. The market-related information and the competitive position of Grupo Famsa, including the market estimates used throughout this presentation were obtained from reliable public sources and the Company assumes no obligation as to the accuracy of said disclosure. information. This presentation and its contents are the property of the Company and may not be reproduced or distributed in whole or in part without the prior written consent from Grupo Famsa. Whoever receives this presentation, must comply with the applicable legal provisions and must obtain each and every one of the authorizations that apply to him. Neither the Company nor any of its affiliates, directors, officers, agents or employees shall be liable to third parties for such provisions. All the relevant information of the issuer, in particular that relating to risk factors, is contained in the annual report of Grupo Famsa for fiscal year 2017 and in the other reports disclosed by the Company, which can be found in the websites of The Mexican Stock Exchange and 24

25 Contact We have a strong commitment to keeping you updated. Please do not hesitate to contact us. Investor Relations Paloma Arellano paloma.arellano@famsa.com +52 (81)