Earnings Presentation Fourth Quarter

Transcription

1 Earnings Presentation Fourth Quarter 2015

2 Highlights of the period 1 Segment Overview Balance Sheet Financials Q&A Agenda

3 Fourth Quarter Highlights Robust financials exiting 2015 Strong financials driven by successful cost management Adjusted EBITDA margin the highest in 12 quarters, reflecting double digit growth EBITDA across core businesses Net income rise 87% reflecting a 61% increase in operating income Net debt to Adj. EBITDA ratio declines 90 basis points to 2.8x, excluding one offs, the lowest in last 15 quarters Metro Minka - Peru 3

4 Delivering Improvements in Profitability Revenue Performance 3,014,883 3,048,854 Adjusted EBITDA Performance 284,403 +1% 210, % Modest revenue growth despite currency depreciation in Brazil and Colombia. Positive SSS in local currencies across all businesses, except Brazil. All figures are in CLP million Adjusted EBITDA performance showed positive effect on the measures taken on 2Q and 3Q15. EBITDA margin of 9.3%, the highest in 12 quarters. 4

5 Actively Working to Improve Margins Commercial strategy drives 190 bps expansion in gross margin. Negotiations with suppliers. Improvements in pricing strategy and promotional activity. Continued progress in SG&A control program. 8% reduction in headcount YoY Decrease travel & discretionary expenses Non-performing store program implemented. 120 stores under program, all already under review 8 stores closed to date 17 stores have already showed a turnaround in performance Easy Rio Cuarto - Argentina 5

6 Focusing on Core Businesses Possible Shopping Centers IPO structuring the transaction along with Investment Banks Continue divesting non-core assets On March 1 Cencosud sold its minority stake on Mall Viña del Mar for UF4,275,000 Completed sale of Colombian and Peruvian pharmacy businesses and sign of long-term lease agreements Gas Station business sale in Colombia, process in final stage Sale of unproductive real state in Chile moving forward VEA Recoleta Larrea - Argentina 6

7 Highlights of the period 1 Segment Overview Balance Sheet Financials Q&A Agenda

8 Supermarkets: Positive EBITDA in all countries Revenue Performance Adjusted EBITDA Performance 2,242,506 2,159, , ,814-4% +9% Revenue decline reflects currency depreciation in Brazil and Colombia. Positive SSS across the region except Brazil Second consecutive quarter of positive SSS at Prezunic All figures are in CLP million Successfully managed our commercial strategy to improve gross margin. Growth reflects improved performance in Argentina, Peru and Colombia Positive EBITDA Contribution from all countries 8

9 Department Stores: strong performance Revenue Performance Adjusted EBITDA Performance 319, ,414 27,893 +7% 14, % SSS growth above inflation in Chile and Peru. Strong Christmas season, particularly in apparel and toy sections. Improved profitability in Chile, Johnson achieved its first year of positive EBITDA. Peru increasingly narrows its loss and creates synergies in our Chilean operation. All figures are in CLP million 9

10 Home Improvement: solid growth and profitability Revenue Performance Adjusted EBITDA Performance 355, % 422,258 38, % 56,148 Resilient revenue growth in Argentina and Chile. Colombia impacted by the devaluation of the COP. All figures are in CLP million Gross Margin in Argentina boosted by better agreements with suppliers. EBITDA contribution reflects adjusted commercial strategy and a leaner operation. For the first time Colombia achieved positive EBITDA in. 10

11 Shopping Centers: resilient business Revenue Performance 63,352 72,290 Adjusted EBITDA Performance 49,035 63, % +31% Top line growth as a result of higher rents and stable occupancy across Argentina & Chile. Rent from Pharmacies in Colombia partially offset COP devaluation. All figures are in CLP million Improved performance in Argentina due to new contracts. Chile profitability improved despite higher land taxes due to the Tax reform. Peruvian and Colombian operations impacted by higher energy costs. 11

12 Financial Services: positive effect after JV Revenue Performance 81,073 Adjusted EBITDA Performance 24,770 34,420-42% +36% 46,961 8,902-33% +86% 16,578 Chile financial services reported figures explained by the deconsolidation of its financial retail business following the JV with Scotiabank. Provision rate continues to show healthy trend. Portfolio continues to grow across the footprint. Cost of funding increases across the region. All figures are in CLP million Variation in blue reflects business growth/decrease excluding Chile in both period. Variation in white reflects business growth/decrease including Chile in. 12

13 Highlights of the period 1 Segment Overview Balance Sheet Financials Q&A Agenda

14 Financial Ratios: reducing debt and leverage 6,316 Net debt evolution (US$ bn) Net leverage (net debt / Adj. EBITDA) 4.6 4,684 4, , x * * Excludes CLP 105 bn of one off events in 2015 (severance payment, adjustment in inventories, write off Brazil, gain due to JV with Scotiabank) Since 3Q15 Fair Value of Derivatives was reclassified from Other gains/losses to Net Financial Cost and Income/Loss from foreign exchange variations. For further information please refer to note 35 on Consolidated Financial Statements. 14

15 Financial Ratios: comfortable liquidity position Debt amortization schedule In 2016 includes USD 112 MM in overdraft for working capital All figures are in CLP million 15

16 Financial Ratios: managing rate and currency debt exposure Breakdown by Rate (After CCS) Breakdown by Currency (After CCS) December 2014 Variable 56% 33% Fix 44% December 2015 Variable 27% Fix 67% 73% 82% 18% December % 4% 1% 8% 11% 73% CLP (incl. UF) USD BRL COP PEN December % 2% 1% 1% 64% ARS 16

17 Highlights of the period 1 Segment Overview Balance Sheet Financials Q&A Agenda

18 Closing Comments Our business saw a strong improvement in the second half of 2015 Revamped commercial strategy to provide sustainable gross margin improvement Strong year-end with the highest EBITDA margin in the last 3 years despite economic slowdown Delivering on strategic plan designed by management to improve profitability and financial position Facing 2016 with leaner cost base and focus on each business Jumbo e Easy San Bernardo - Chile 18

19 4 th Quarter Earning Release 19 The information contained herein has been prepared by Cencosud S.A. ( Cencosud ) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment or other advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this presentation are subject to change without notice and Cencosud is under no obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is qualified in its entirety by reference to more detailed information included in the preliminary offering memorandum. Cencosud and its respective affiliates, agents, directors, partners and employees 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. Jumbo e Easy Costanera Center - Chile This presentation may contain statements that are forward-looking subject to risks and uncertainties and factors, which are based on current expectations and projections about future events and trends that may affect Cencosud s business. You are cautioned that any such forward-looking statements are not guarantees of future performance. Several factors may adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control.

20 4 th Quarter Earning Release Marisol Fernández León IRO Phone: Natalia Nacif Senior IR Analyst Phone: Upcoming Events March 10&11 Citibank 24 th Annual Citi Latin America Conference, NYC March 15&16 Larrain Vial 10 th Andean Conference, Santiago April 5&6 Bradesco, 3 rd Brazil Investment forum, Sao Paulo