Grupo Valorem Corporate Presentation. Sensibilidad: Publica

Transcription

1 Grupo Valorem Corporate Presentation November 2017

2 Contents 1. Profile 1.1 History and Background 1.2 Profile 1.3 Grupo Valorem s Diagram 2. Corporate Strategy 2.1 Valorem s Model and Current Corporate Projects 2.2 Dominant Theme and Horizons of Growth 3. Companies 3.1 Main Companies 3.2 Grupo Valorem s Significant Figures 4. Team 4.1 Organizational Chart 2

3 1. Profile 1.1 History and Background 1.2 Profile 1.3 Grupo Valorem s Diagram 3

4 1. Profile 1.1 History and Background Valorem is the main investment vehicle of the Santo Domingo family in Colombia It has evolved over the years to focalize its investment portfolio in the services industry Growth through disruptive business models Disinvestment Stage Investment Investment D1 Control Split of non-beer assets Strategic Portfolio Reorganization Administrative Reorganization / Corporate Governance Capital Strengthening of 14 companies Valores Bavaria 4

5 1. Profile 1.2 Grupo Valorem s Profile Valorem leads a business group that grows profitably and sustainably investing in companies in the services industry in order to transform or escalate them with disruptive business models 1, leveraged on its talent and corporate reputation Current portfolio includes these sectors: Media and Entertainment Logistics and Transport Retail Environmental Services Hospitality Services 1 Disruptive business models: Those revolutionizing a sector by creating a previously nonexistent market 5

6 1. Profile 1.3 Grupo Valorem s Diagram 20% 60% 50% 100% 52% 94% 100% 100% 28% 100% 100 % 46% 54% 6

7 2. Corporate Strategy 2.1 Valorem s Model and Current Corporate Projects 2.2 Dominant Theme and Horizons of Growth 7

8 2. Corporate Strategy Introduction Valorem grows in line with the primary objective of its corporate strategy: guide the group to profitable and sustainable growth. This implies that Valorem s revenue and EBITDA should generate double digit growth rates. The main challenge of this strategy is to generate competitive value for its companies, so their business value is higher because they are part of Grupo Valorem. 8

9 2. Corporate Strategy 2.1. Valorem s Model and Current Corporate Projects Valorem engages with its associated companies as a strategic architect Strategic Architect Shares management models Shares information systems Promotes corporate negotiations Shares customers/channels Promotes the transfer of best practices Corporate Projects Technology transformation program (SAP) Corporate Governance Talent management system Licensing, service and equipment negotiations IFRS implementation Value-based management Corporate sustainability model Engagement and communications Strategic risk management model Outstanding results management model 9

10 2. Corporate Strategy 2.2 Dominant Theme A dominant theme allows the organization to choose those things it should give up, to focus on business opportunities where it has an advantage Valorem s Dominant Theme Valorem invests in companies in the services sector in order to transform them or scale them with disruptive business models, leveraged on its talent and corporate prestige. 10

11 2. Corporate Strategy 2.2 Horizons of Growth In order to plan its growth, Valorem uses a methodology of horizons*, which defines businesses to explore, experiment, scale and exploit 3 4 Future Earnings 1 2 Logistics and Transport Environmental Services Retail Hospitality Services Early Warning Systems Entertainment Media Packaging Film Utilities Relevance of EBITDA in the Future * Based on the work by Baghai, Coley, White The Alchemy of Growth,

12 3. Companies 3.1 Main Companies 3.2 Grupo Valorem s Significant Figures 12

13 3.1 Main Companies Media and Entertainment Logistics and Transport Retail Environmental Services Other Non-controlling Non-controlling 13

14 General Description Caracol TV is the most watched private television channel in Colombia In 2002, it launched the international signal and in 2010, it officially started the digital transmission of its signal It has two radio stations, BLU Radio (reference point in talking radio) and La Kalle (popular music) Caracol NEXT is the number one network in portal management according to Comscore for the brands: BLU Radio, Caracol Televisión, Caracol Noticias, Caracol Play, Gol Caracol, El Espectador, Cromos and Shock The brand Caracol Televisión Inspira seeks to leave a positive footprint in the community, through voluntary work, the creation of responsible entertainment with family content, interaction and free expression Relevant Data Year of creation 1969 Employees Studios 12 Countries that purchase Caracol products Flyaway Antennas Annual programming hours Post-production studios (Incl News) 71 2 % 38 % 60 % Market Share 2016 Audience (Ibope) 3 % 39 % 58 % Sales (Asomedios) Uno RCN Caracol 14

15 Financial Summary Assets Financial Debt Operating Income 752 Ebitda* Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law 1314 * Valorem management calculations 15

16 General Description El Espectador is the oldest newspaper in the country with a print version and various editions on its digital platforms Under the direction of Fidel Cano, it is considered one of the most serious and professional newspapers because of its independence, credibility and objectivity. Awards 2016: Five Simón Bolívar Awards for Journalism: - Opinion on television by La Pulla - Best photographic work - Best news coverage - Best investigation - Life and Work Award granted to Alfredo Molano Relevant Data Year of creation 1887 Employees 334 Coverage for municipalities 294 Daily Print Run, Monday through Saturday Print Run, Sunday Market Share 2016 Readers last period* Printing: - First place in ANDIGRAF category of newspapers with heat-set On the other hand, the celebrity magazine VEA, created in 2013, was the most widely read magazine in the country in 2016 *Source EGM OLA Does not include free newspapers 16

17 Financial Summary Assets Financial Debt No debt Operating Income Ebitda* Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law 1314 * Valorem management calculations 17

18 General Description Relevant Data Cromos is a reference point of fashion, lifestyle, good journalism, photojournalism, highlighting the history of our country It is a magazine that tells stories; it is reflective, fresh and glamorous; a magazine that shows the lifestyle of a woman who is very feminine, contemporary and modern, who likes to go shopping, cook, travel, talk about culture and take care of her body and soul In 2016, Cromos commemorated 100 years of its foundation with a special edition that compiled the most relevant facts published throughout its history Year of creation 1916 Employees 30 Frequency Fortnightly # of Magazines per edition Digital users Unique users Q= Fortnightly M= Monthly S= Weekly 15 Minutos (M) 11% Cromos (Q) 8% Revista Carulla (M) 10% Soho (M) 11% *Source: EGM OLA Market Share 2016 Readers last period* Other 5% Vea (Q) 23% TV y Novelas (Q) 15% Revista Semana (S) 16% 18

19 Financial Summary Assets Financial Debt 9,71 7,18 5,98 No debt Operating Income Ebitda* 10 8,23 6,35 0, ,99 Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law 1314 * Valorem management calculations 19

20 General Description Relevant Data Participación de mercado Cine Colombia is the largest film exhibitor and distributor in the country It has the only alternative entertainment division in the country, with contents of the MET of NY, the Bolshoi Ballet and the London Theater among others It has a differential offer of food, including sushi, a candy shop, ice cream and Juan Valdez coffee In 2017, it celebrates its 90 th anniversary, sharing high-definition cinema with 90 municipalities in Colombia that do not have movie theater infrastructure Year of creation 1927 Employees Multiplex 42 Movie screens 282 Mega Cinema 6 Dinamix 4D 7 Royal 11 MM 18% Cineco 25.2 MM 41% Market Share 2016 (millions of spectators per circuit) Source: Analysis by Cineco Cinemark 10.8 MM 17% Procinal 8 MM 13% Others MM 6% Cinépolis 3.5 MM 5% 20

21 Financial Summary Assets Financial Debt Operating Income Ebitda* *Valorem management calculation Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law

22 General Description Suppla is a logistics services company It designs operating models to optimize the supply chain; integrating services of foreign trade, storage, secondary packaging, transportation and document management Relevant Data Date of creation Suppla Brand from years of operation Employees Coverage Customers (Main) 25 cities Cencosud, Falabella, LG, Unilever, Procter, Novartis, J&J, Colgate, Samsung, Telefónica, UNE, among others Certifications: ISO 14001:2004 Suppla S.A. ISO 9001:2008 Logistics, international trade and document management ISO BASC: Suppla, Suppla Cargo, Suppla Agencia de Aduanas y Servicéuticos Market Share 2016 Alpopular 5% Panalpina 6% Kuehne & Nigel 7% Almagrario 8% DHL Col 9% Source: Analysis by Suppla UPS 4% Open Market 10% CCL 4% Suppla 25% Almaviva 12% Blulogistics 10% 22

23 Financial Summary Assets Financial Debt Operating Income Ebitda* Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law 1314 *Valorem management calculation 23

24 General Description Lines of business: National cargo, imports, exports, international cargo and last mile services Complementary services: Loading and unloading, vehicle support, preparation of border control documents, customs procedures, among others Technology platform to schedule operations and carry out satellite tracking Technology tools such as App, web portal, merchandise volume calculation, online payment reports Complete logistics support through the preparation of business plans and inhouse offices BASC and ISO 9001:2008 certification, elected as Exemplary Supplier Services Large Company 2016 by Grupo Nutresa Relevant Data Year of creation 1994 Employees 253 Coverage 15 cities Customers In-house offices 36 Preferential vehicles Own fleet Market Share 2016 Ditransa 2% Other 98% Source: Analysis by Ditransa 24 vehicles There are around Transport services companies in the market. 24

25 Financial Summary Assets Financial Debt Operating Income 132 Ebitda* Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law 1314 *Valorem management calculation 25

26 General Description Through the D1 brand, KOBA is the owner of the first hard discount chain in Colombia D1 offers high quality products at very low prices, with a limited assortment and a significant component of own brands The business format is designed to be simple, efficient and productive, to reduce costs throughout the whole chain without investing in advertising Cost savings are passed on to consumers through the price The stores are located in major cities and surrounding municipalities D1 has presence in Antioquia, Bogotá D.C., Boyacá, Cauca, Cundinamarca, Caldas, Quindío, Risaralda and Valle del Cauca Relevant Data Year of creation 2009 Employees Coverage Number of stores 566 Distribution centers 8 8 departments Store size 250 m m 2 Limited assortment 500 SKU Number of Stores by Distribution Center Soacha; 40 Antioquia Oriente; 42 Funza; 51 Tocancipá; 104 Valle; 77 Antioquia Sur; 89 Antioquia Nor; 74 Eje Cafetero; 89

27 Financial Summary Assets Financial Debt Operating Income Ebitda* Figures in billions of pesos The figures for 2014 are submitted under accounting standards, Decree The figures for 2015 and 2016 are submitted Under the Accounting and Financial Reporting Standards ( AFRS ), Law *Valorem management calculation 27

28 General Description Relevant Data Refocosta offers forestry services: configuration, assessment and implementation of new and already established plantations for industrial uses It has three business divisions: Products, Services (environmental impact mitigation) and Renewable Energy Refocosta has its own machinery, experience and professional team required to process wood and meet the environmental impact mitigation requirements It renders services to large infrastructure customers, large-scale hydroelectric projects, and fourth generation 4G road concessions It has maintained the FSC (Forest Stewardship Council) certification for its leadership in international sustainability practices Year of creation 1980 Employees 473 Total hectares planted Market Share 2016 Refocosta 10% Guasmo 0% TM Codemaco 2% Placacentro 4% Tablemac 20% Masisa 14% Pizano 7% Source: Supersociedades, Analysis by Refocosta Madecentro 43% 28

29 Financial Summary Assets Financial Debt Operating Income Ebitda* Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law 1314 *Valorem management calculation 29

30 General Description Biofilm produces Bi-Oriented Polypropylene (BOPP) films BOPP is the best moisture barrier film, widely used in flexible food packaging for food (snacks, cookies, chocolates, beverages, etc.,) as well as in other industrial applications Biofilm has plants near the ports of Cartagena (COL) and Altamira (MEX), which is a strategic position in its export mission with customers in more than 20 countries It is one of the major players of the BOPP international market in highvalue-added specialties and films, and is the leading non-us supplier of the largest brands in the snack and cookie sector Relevant Data Year of creation 1988 Employees Production capacity (Ton) Cartagena (COL) Altamira (MEX) Served countries > 20 Metallized and High-Barrier AlOx Specialty Market share % 23% 5% Colombia Mexico Central USA 4% 30

31 Financial Summary Assets Financial Debt Operating Income Ebitda* *Valorem management calculation Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law

32 General Description The company distributes and commercializes natural gas, as a clean energy source, contributing to improve the quality of life of the community through an excellent service Its main operation is in Barranquilla and has coverage in the North Cost of Colombia (Atlántico, Magdalena, Cesar and Bolívar) Subordinate companies: 1. EFIGAS: 80.1% users 234 MM m 3 of sold gas in Gases de la Guajira: 86.9% users 24 MM m 3 of gas sold in 2016 Relevant Data Year of creation 1967 Direct employees 296 Formal indirect employees (contractors) Coverage locations Number of customers Volume sold MM m 3 Brilla portfolio 2016 (nonbank financing) Equity Participation Prime Other (Valorem) 20% Promigas 31% MM Invercolsa 49% 32

33 3. Financial Summary Assets Financial Debt Operating Income Ebitda* *Valorem management calculation Figures in billions of pesos Under the Accounting and Financial Reporting Standards ( AFRS ), Law

34 3.2 Grupo Valorem s Significant Figures Sales per Company 2016 (weighted per share) Figures in billions COP Koba Colombia Caracol Cine Colombia Gases del Caribe Grupo Suppla Biofilm Ditransa Comunican Refocosta Cromos Canal Clima Total 36 % 19 % 12 % 10 % 8 % 14 % x % % of Total Source: Valorem analysis 34

35 3.2 Grupo Valorem s Significant Figures EBITDA per Company 2016 (weighted per share) Figures in billions COP (12) (7) (1) (1) Cine Colombia Caracol Gases del Caribe Biofilm Grupo Suppla Koba Refocosta Ditransa Comunican Colombia Cromos Canal Clima Total 33 % 31 % 19 % 14 % 3 % x % % of Total Source: Valorem analysis 35

36 3.2 Grupo Valorem s Significant Figures Financial Obligations per Company 2016 (weighted per share) Figures in billions COP Caracol Gases del Caribe Cine Colombia Biofilm Grupo Suppla Koba Colombia Ditransa Refocosta Comunican Cromos Canal Clima Total 25 % 23 % 19 % 18 % 8 % 8 % x % % of Total Source: Valorem analysis 36

37 3.2 Grupo Valorem s Significant Figures Assets per Company 2016 (weighted per share) Figures in billios COP Caracol Cine Colombia Biofilm Gases del Caribe Koba Colombia Grupo Suppla Refocosta Ditransa Comunican Cromos Canal Clima Total 29 % 17 % 17 % 12 % 10 % 14 % x % % of Total Source: Valorem analysis 37

38 4. Team 4.1 Organizational Chart 38

39 Equipo 4. Team 4.1 Organizational Chart Board of Directors CEO Carlos Arturo Londoño VP Planning and Development of New Businesses VP Legal VP Financial and Administrative VP Corporate Affairs Luis Felipe Arrubla Carlos Rave Alejandro Arboleda Sergio Uribe Portfolio Management Financial Planning Management Legal Management Accounting Management Investor Relations Management Corporate Talent Management Corporate Technology Information Management SAP Manager 39