3, Brands 79% Corporate 21% Franchises. units 72, ,257. Our presence. employees. millions clients served. Mexico. Spain.

Transcription

1 2Q17

2 Our presence 14 Brands 79% Corporate 21% Franchises 3,291 units 72,000 employees +423 millions clients served 2,257 Mexico 519 Spain 222 Argentina 139 Colombia 150 Chile 4 Brazil 2Q17 Alsea 2

3 Alsea Mexico - Today Stores Corporate Franchises Alsea Mexico Employees % Total 1, % 71% 57% Sales Share 71% EBITDA Share 6% 5% 7% 8% 18% Vips Starbucks Domino's Burger King Italianni's El Portón Chili's 31% 15% Chili's DIA P.F. CHANG'S California Pizza Kitchen Alsea The Cheesecake Factory 2Q17 Alsea 3

4 Alsea International - Today Stores Corporate Franchises Alsea International Employees % Sales Share 19% 24% 15% 4% 3% % 35% Spain South America 28% Total % EBITDA Share 16% 13% Burger King Domino's Starbucks Foster's Hollywood Archie's P.F. CHANG S P.F. CHANG S Alsea Other 2Q17 Alsea 4

5 Alsea - Today Stores Corporate Franchises Total 2, Sales per geography 24% 19% 57% Mexico South America Spain Employees 4% 4% 4% 5% 2% % Domino's Vips Burger King Starbucks Italianni's Foster's Hollywood Chili's El Portón 17% 21% 21% El Portón P.F. CHANG'S Alsea Supply Archie's California Pizza Kitchen Other 2Q17 Alsea 5

6 Grupo Zena Performance Estimates at acquisition vs. Real Sales EBITDA Before Acquisition 1st Year Target Jun-17 LTM Before Acquisition 1st Year Target Jun-17 LTM Acquisition Multiple 8.1x Jun-17 LTM 4.8x Figures in million euros Free Cash Flow Jun-17 LTM Jun-17 Net Debt/EBITDA 24m 1.6x 2Q17 Alsea 6

7 Innovation Consumer - Tecnology Multi-brand Rewards program Aproximately 35% increase in average ticket Description / Objective: know your customer Reach: 1st stage - Mexico How does it work: Gaining and Redeeming points 750,000 registered users Almost 1,300 Restaurants on board Wow is in 6% of Alsea Mexico sales 2Q17 Alsea 7

8 2Q17 Strategy 2Q17 Alsea 8

9 Strategic Definitions Purpose Value Proposition Ignite people s spirit We are a determined community committed to excellence and integrity, we maximize synergies to deliver a surprising offer to our Guests and to make sure that our Restaurants generate extraordinary results, contributing with happiness doses even in the smallest details, to fulfill our purpose of igniting people s spirit. Brands Alsea s Culture Way to Win Winning Attitude Engaged Leadership Surprising Service Collaborative Spirit Focused on deep knowledge and an exceptional GUEST experience Brand Portfolio Best Talent Best Operator Marketing Technology and Synergy and Sustainability Innovation Critical Mass Attention to Detail 2Q17 Alsea 9

10 Markets Actual Market 3,291 units Population 492 million Per-Capita Expense Food Service Industry (Figures in usd) GDP USD 5,149 billion 1,980 1, million Clients served as of Jun 17 LTM Diversified Portfolio Popular Segments A/B C+ C C-/D+ D/E Served by the informal sector Colombia Chile Mexico Argentina Brazil Spain United Estates 2Q17 Alsea 10

11 Mexico Strategy Market Holding Capacity Franchises Corporate Openings 2017e Q17 Alsea 11

12 International Strategy Market Holding Capacity Col. Arg. Chl. Col. Arg. Chl. Col. Arg. Chl. Col. Bra. Col. Spain Openings Argentina Chile Colombia Brazil Spain 2017e Q17 Alsea 12

13 Growth Strategy Growth Margin expansions Organic Growth + Acquisitions Operating Leverage Business Mix + + Operating Efficiencies SSS Store Openings New Brands New Markets New Brands Franchises & Sub-franchises Existing Brands New Markets SSS Units Corporate Franchised Sub-franchised Brands Segments Geographies Cost of Sales Pricing Strategy Expenses Synergies Best practices Solid Business Plan Great + Execution = Formula for Success 2Q17 Alsea 13

14 2Q17 Financials 2Q17 Alsea 14

15 Consolidated Results Sales CAGR 29% (12-16) EBITDA CAGR 34% (12-16) 9,066 14% 10,344 32,288 17% 37,702 15% 1,406 20% 1,223 4,302 5,155 2Q16 2Q17 FY15 FY16 Net Ordinary Income CAGR 29% (12-16) 9% 1,126 1, % 2Q16 2Q17 FY15 FY16 Net Debt / EBITDA 2.5x 2.5x 94 2Q16 2Q17 FY15 FY16 2Q16 2Q17 Sales, EBITDA and Net Ordinary Income figures in million pesos 2Q17 Alsea 15

16 Business Overview - Mexico 19% 4% 3% 3% 2% 4% 5% 3% 5% 6% 27% 6% 27% 14% 27% 7% 7% 12% 8% 22% 8% 20% 30% 15% 13% Units Sales* Adjusted EBITDA* 3% Starbucks Vips Domino's Burger King Chili's Italianni's Chili's Italianni's DIA El Portón Other** *Quarterly share figures for sales and Adjusted EBITDA **P.F. Chang s, The Cheesecake Factory, California Pizza Kitchen Total Stores Results 2Q17 12m Dec16 SSS 5.0% 5.9% Revenues $5,922 $21,986 Adjusted EBITDA $1,412 $5,202 1,380 1,571 CARG 16% 1,999 2,092 2,215 2,257 Margin 23.8% 23.7% Adjusted EBITDA and Revenues figures in million pesos Q17 2Q17 Alsea 16

17 4% 22% % 2% %Business Overview 2% % 4% % 1 21% 21% 23% 27% 16%38% 23% 16% 22% 38% Results SSS Revenues Adjusted EBITDA 38% 19% 16% 19% 11 25% 21% Units Margin 11 - International 25% 19% Sales* 29%29% 21% 25% 21% 21% 23% 23% Adjusted EBITDA* 2Q17 12m Dec % 13.6% $4,222 $15,716 $782 $2, % 17.4% Burger King Starbucks Foster s Hollywood Domino s Burger King P.F. Chang s Burger King Starbucks Starbucks La Vaca Foster s Hollywood Foster s Hollywood Cañas y tapas Domino s P.F. Chang s Domino s Archie s La Vaca CañasP.F. y tapas Chang s Archie s La Vaca *Quarterly share figures for sales and Adjusted EBITDA Cañas y tapas Archie s 29% 23% Total Stores CARG 42% , Adjusted EBITDA and Revenues figures in million pesos Q17 2Q17 Alsea 17

18 26% 3% 3% 10% 4% 4% Starbucks 23% 4% 26% 5% Business 7% Overview - Alsea 20% 8% % 2% 2 3% 3% 3% 2% % 21% 10% 4% 4% 7% 26% 23% 4% 26% 13% 8% 5% 7% 18% 8% 12% 20% 13% 21% 29% 13% 18% 17% Units Sales* Adjusted EBITDA* Starbucks Burger King 12% Domino s Vips Foster s Hollywood Chilli s 17% Burger King Domino s Vips Foster s Hollywood Chilli s Italianni s DIA El Portón P.F. Chang s Other** Italianni s *Quarterly share figures for sales and Adjusted EBITDA **Archie s, The Cheesecake Factory, California Pizza Kitchen, Cañas y Tapas, La Vaca Total Stores Results 2Q17 12m Dec16 SSS 7.1% 8.9% Revenues $10,344 $37,702 Adjusted EBITDA $1,406 $5,155 CARG 20% 2,784 2,954 1,862 1,421 3,195 3,291 Margin 13.6% 13.7% Adjusted EBITDA and Revenues figures in million pesos Q17 2Q17 Alsea 18

19 Debt Profile Capital structure 2Q17 2Q16 Net Debt / EBITDA 2.5x 2.5x EBITDA / 5.0x 6.2x Interest Paid Debt structure 2Q17 Bond Debt 26% Bank Debt 74% Duration 3.4 years $1,157 $12,094 $13,251 2Q16 Figures in million pesos $1,255 $14,272 2Q17 Avarage cost Peso: 8.25% Euro: 2.0% Main banks Bank of America 19% Scotiabank 11% Citibanamex 8% $15,528 Cash Net Debt Total Debt Debt maturity 7% 10% 19% 33% 20% 2% 1% 2% 6% 5,162 1,101 1,485 2, % 4% 83% 3,070 Mexican peso Euros Argentinian and Chilean pesos % 91% 1,000 Long term debt Short term debt 2Q17 Alsea 19

20 Guidance corporate SSS Mid Single Digit Top line Growth Between Total openings sub-franchisees Revenues Low to Mid Double Digit Growth Flat EBITDA margin vs EBITDA Growth BN CAPEX* 2.2x-2.4x Net debt/ebitda EBITDA Low to Mid Double Digit Growth *Excluding acquisitions, includes the new Alsea Operations Center ( COA ), as well as the new HQ in Mexico City. 2Q17 Alsea 20

21 Future Targets Sales EBITDA EBITDA margin expansion Dividends 2017e Low to mid double digit Low to mid double digit 2021e Flat vs >15% >$0.70 pesos per share CAGR** > 15% CAGR** = Mid-teens Acum >$ 5.50 pesos per share Adjusted EPS* $1.70 CAGR** >25% ROIC 11% >20% ROE* 14% Low 20 s *Without considering any effects from the Put / Call Options. ** 5 - year Compound Annual Growth Rate 2Q17 Alsea 21

22 Investor Information Salvador Villaseñor / IR ri@alsea.com.mx Phone: +52 (55) Headquarters Alsea, S.A.B. de C.V. Av. Revolución # st. Floor Corporate Tower Col. Los Alpes, Del. Alvaro Obregón Zip Code 01040, Mexico City Phone: +52 (55) The slides of this presentation, contains forward-looking statements regarding the Company s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in this press release should be read in conjunction with the factors described in the risks summary in the Company s annual report, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this press release and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise.