Earnings Presentation. Third. Quarter

Transcription

1 Earnings Presentation Third Quarter 13

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3 Cencosud Highlights for 3Q13

4 4 Operational & Financial Highlights 11 net store openings across the region SAP implementation completed in Brazil including CDs Colombia rebranding complete SSS at Johnson posts double digit expansion Due diligence with Itaú completed Key Financials Revenues increased 14.1% YoY in CLP Adjusted EBITDA grew 5.9% YoY in CLP Third Quarter 13

5 5 Revenue Expansion Across the Board Revenue evolution (CLP bn) Revenue by Country Peru 8% Colombia 0,5% 3Q ,2% Brazil 22% Chile 41% 3Q 12 3Q 13 Revenue expansion was mainly driven by supermarkets with a 15.7% jump due to the consolidation of Colombian supermarket operations and a good performance in Chile and Argentina All division posted positive revenue growth in the period. Argentina revenue grew 4%, despite 13% devaluation of currency Argentina 28% 3Q13 Brazil 19% Peru 8% Colombia 9% Chile 38% Argentina 26% Note: figures in the pies are in USD

6 6 Growth In Adjusted EBITDA Margin Adjusted EBITDA (CLP mm) Adjusted EBITDA by Country Brazil 10% Peru 8% 3Q12 +5,9% Q 12 3Q 13 Argentina 29% Colombia 0% Chile 53% Brazil 10% Peru 6% Supermarket EBITDA boosted by Colombian operations Financial services in Chile post an excellent performance and lower charges related to risk Argentina 27% Chile 52% 3Q13 Colombia 5%

7 7 Openings 3Q13 vs. 2Q13 Openings 3Q13 vs. 3Q12 10 Super markets +32% increase in selling space 158 Super markets* 2 Home Improve ment +1% increase in selling space 2 Home Improve ment +4% increase in selling space 2 Department Store 1 Shopping Centers +6% increase in selling space * Includes 96 new supermarkets and 431,040 sq meters from the Colombian operations. Cencosud opened 12 stores and increased selling space 1% Cencosud opened 163 stores and increased selling space 18%

8 Investor Highlights

9 9 Performance in Colombia Supermarkets Rebranding effort completed all stores migrated to Jumbo or Metro brands. Nationwide strikes in transportation and agricultural sectors negatively impact sales. Nationwide marketing campaign planned for 4Q13. Last year s Anniversary sales by the prior operator hurt us on comparison basis. As a result of these non-recurring items SSS in the segment fell 13.9% vs 3Q12

10 10 Cencosud Investor & Analyst Day Take Aways 1.Brand Placement 2.Potential GLA development in the country to benefit both the supermarkets and home improvement divisions. 3.Efforts to leverage on regional footprint to achieve synergies. 4.Private label strategy in Colombia.

11 11 Financial Services Agreement with Itaú Update on CENCOSUD s announced agreement with Itaú for the joint development of the Financial Retail business in Chile and Argentina Due diligence was successfully completed in late September. Parties are currently working on a macro agreement for corporate constitution of the joint venture Corporate governance guidelines are being drafted for the future JV

12 12 Reclassification on Financial Services Including Discontinued Operations Discontinued Operations FECU The main impacts on assets are: Sept 13 Trade receivables and other receivables Intangible assets Total assets Other Financial Liabilities, Current Total liabilities Total Equity Total liabilities & Equity MM$ 482,850 in Trade receivables and other receivables (deduction of Chilean & Argentine portfolio) MM$ 7,150 in Intangible assets other than goodwill The main impact on liabilities is: MM$ 444,866 in Other financial liabilities, non current Note: All figures are in CLP million

13 13 Reclassification on Financial Services Pursuant to IFRS 5 Cencosud has modified the reporting of its financial services segment in Chile and Argentina The sum of post-tax profit of discontinued operations and post tax gains by fair value minus fair value adjustments on the assets to be disposed is to be shown as a single amount. With disc ops disc ops. FECU 3Q13 Revenues ( ) Gross margin ( ) EBITDA Q12 Revenues ( ) Gross marin ( ) EBITDA Note: All figures are in CLP

14 Cencosud Financial Structure

15 15 Financial Ratios Net debt evolution (US$bn) Net leverage (net debt/ebitda) ,4 4, ,3 5,1 12 2Q13 2,7 2,7 3,1 4,6 3, Q13 Interest coverage Total debt / equity 5,8 8,4 5 3,4 3, Q13 57% 53% 65% 90% 63% Q13

16 16 Amortization schedule (US$mm) Breakdown by issuer Breakdown by currency Breakdown by interest rate Subsidiaries 23,6% 3,9% 3,9% 4,0% 3,2% 11,7% CLP USD ARS Variable rate 27% COP 76,4% Cencosud 73,4% PEN BRL 73% Fixed rate Source: Cencosud Note: Includes cross-currency swaps Note: Includes cross-currency swaps

17 Results by Business

18 18 Supermarkets Revenue evolution (US$ bn) +8,7% SSS evolution by country in local currency 3Q 12 3Q 13 Adjusted EBITDA evolution (US$ mm) 1Q 13 2Q 13 3Q 13-4,2% 3Q 12 3Q 13 Source: Cencosud. Figures converted to USD, exchange rate by the end of June 12 and 13

19 19 Home Improvement Revenue evolution (US$ bn) +3% SSS evolution by country in local currency 3Q 12 3Q 13 2Q12 1Q13 2Q13 Adjusted EBITDA evolution (US$ mm) -24,8% 3Q 12 3Q 13

20 Shopping Centers Revenue evolution (US$ bn) -1,5% 3Q 12 3Q 13 Adjusted EBITDA evolution (US$ mm) -1,2% Revaluation of assets decreased 5.2% in 3Q13 (CLP 976 million) Real estate operations in Colombia being consolidated boosts revenue for the division Higher contributions from Argentina despite currency devaluations and Peru to EBITDA Lower YoY performance than expected performance from Chile 3Q 12 3Q 13

21 21 Financial Services Gross loan portfolio evolution 768 CHILE ARGENTINA PERU Q11 3Q12 3Q13 3Q11 3Q12 3Q13 3Q12 3Q13 Provision / Loans (%) 8.0% 7.8% 7.5% Provision / Loans (%) 10.1% 6.0% 3.4% Provision / Loans (%) 13.6% 10.3% 3Q11 3Q12 3Q13 3Q11 3Q12 3Q13 3Q12 3Q13

22 22 Department Stores Revenue evolution (US$ bn) +1,3% SSS evolution by country in local currency 3Q 12 3Q 13 Adjusted EBITDA evolution (US$ mm) 4,9% 2,9% 3,3% -18,9% 1Q13 2Q13 3Q13 3Q 12 3Q 13 Non comparable figures. Since 1Q13 SSS consolidate Johnson stores. Johnson 3Q13 SSS stood at 11.8%

23 Earnings Presentation Third Quarter 13