The following information contains or may be deemed to contain, forward-looking statements (as defined by the U.S. Private Securities Litigation

Transcription

1 October 2017

2 The following information contains or may be deemed to contain, forward-looking statements (as defined by the U.S. Private Securities Litigation Reform Act of 1995). 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 the issuer may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. GrupoElektra ( Elektra or the Company ) undertakes no obligation to update or revise any forward-looking statements. 2

3 Agenda Grupo Elektra in Grupo Salinas Profile of the Company Commercial Business Financial Business Financial Overwiew 3

4 Grupo Salinas Consumer Finance and Retail Media Telecommunications Social Responsability Internation money transfer More than 70,000 employees Presence across the Americas in Mexico, the US, El Salvador, Guatemala, Honduras, Panama and Peru 4

5 Company Profile Grupo Elektra is the leading financial services company and specialty retailer in Latin America, and the largest non-bank provider of cash advance services in the US The strength of the Company is based on more than six decades of credit experience, contributing to enhance the purchasing power of millions of families at the mass market Operates more than 7,000 points of contact in seven countries in the Americas Incorporated in the Sustainability Index of the Mexican Stock Exchange for four consecutives years 5

6 Presence in America Points of Contact USA USA: 2,086 Mexico Guatemala Honduras Mexico: 4,423 El Salvador Panama Peru Latin America: 672 Total: 7,181 6

7 Target Market 67% of Latin American Families Middle-income families in the US Customer Profile Advance America Customers U.S. Census 2010 Average Age Median Household Income US$56,228 US$50,046 % Homeowners 78% 65% % With High School Diploma or Higher 94% 85% Source: AMAI (Mexican Association of Research Agencies) *AMAI estimation based on IBOPE-NIELSEN. Considers cities of 50,000 or more inhabitants 7

8 Agenda Commercial Business 8

9 CommercialBusiness Revenues by category as of LTM 2Q17: Ps.33,462 millions Motorcycles 27% Mobility 17% Computers 3% Other 7% Furniture 7% Electronics 11% Electronic Money Transfers 12% Appliances and White Line 16% 9

10 Elektra Store Format Target: C, D+ socioeconomic segments 1,175 points of contact as of 2Q17: 1,011 in Mexico and 164 in Latin America Traditional average store sales floor: 884m2 16 distribution centers: 10 in Mexico and six in Latin America 10

11 Salinas y Rocha Store Format Target: C+, C socioeconomic segments High quality furniture, home appliances, white line, and high-tech products 48 points of contact in Mexico Average store sales floor: 1,060m 2 11

12 Italika Own brand of motorcycles Close to 60% market share in Mexico More than 3.4 million motorcycles sold in Mexico, Guatemala, Peru, Honduras, Panama and Costa Rica Ensamblika has assembled more than 2.2 million units in eight years The facility has four assembly lines with a daily installed capacity of 2,100 motorcycles More than 50 models with engines between 90 and 250 cc, including the first electrical powered Voltium Distribution channels: Elektra stores, Salinas y Rocha, dealers, retail chains and own agencies More than 600 services centers authorized in Mexico and more than 190 in Latin America 12

13 New Elektra Store Format One and two floors Exhibition and sales floor: 1,500 m 2 Banco Azteca space: 170 m 2 Seven cashiers One ATM Parking space: 780 m 2 13

14 New Elektra Store Format Better catalogue and purchase experience Better promotional activity Exclusive motorcycle models Better Banco Azteca image 14

15 Agenda Financial Business 15

16 Financial Business Revenues by category as of LTM 2Q17: Ps.54,817 millions 72% 24% Loans: Consumer Interest bearing: Savings Micro insurance: Life and liability Loans: Payday ~1% 3% 1% Personal Investments Retirement fund administrator Title Gold pawn Debit cards Investment in stocks Installment Commercial Prepaid cards Brokerage Online Group Digital banking Institutional promotion Tax services 16

17 Banco Azteca Operates in Mexico, El Salvador, Guatemala, Honduras, Panama and Peru. In Mexico we are: The second largest bank by number of points of contact The third one by amount of personal loans 3,072 points of contact (1,415 inside our retail stores) A solid base of deposits with flexible funding, no commissions, and savings accounts starting with Ps.1 Use of products and payment of services through mobile Apps 17

18 Advance America Leading provider of non-bank cash advance services in the USA, measured by number of stores 2,086 points of contact in 28 states More than 10 million of loans on a year Pay day loans: Average amount: US$347; duration: 20 days Title loans: Average amount: US$845; duration: 68 days Installment loans: Average amount: US$572; duration: 113 days 18

19 Other Financial Businesses Offers liability and life insurance Liability insurance covers: Property Cars Motorcycles Micro insurances in case of casualty and critical illness: Accidental death Breast and cervical cancer First heart attack FIBRA HD 25 Certificados Bursatiles issuances and three IPOs: FIBRA Plus CADU Inmobiliaria Grupo Diniz Grupo Elektra Crediamigo ConCrédito Central Leasing NAFINSA Exitus Capital ION Mas Leasing Lingo Pension fund administrator Assets under management for Ps.51.4 billion as of 2Q17 (+19% vs. 2Q16) 1.96 million of accounts as of 2Q17 (+21% vs. 1Q16) Second place in accumulated return in 2016* * Source: CONSAR 19

20 Agenda Financial Overview 20

21 Consolidated Financial Overview Ps. millions Consolidated Revenues Historic Consolidated Revenues Historic Consolidated EBITDA $75,920 $88,279 $52,807 $69,179 $69,971 $73,629 $74,360 $81,242 $9,073 $11,526 $9,950 $9,479 $10,893 $13,998 LTM16 LTM Consolidated EBITDA CAPEX Cash Flow (1) $12,680 $15,511 $2,346 $3,789 $2,954 $2,090 $1,611 $2,600 $6,727 $7,737 $6,996 $7,389 $9,282 $ LTM16 LTM (1) Cash Flow = EBITDA CAPEX 21

22 Banco Azteca Mexico Highlights Gross Loan Portfolio Delinquency Rate $60,833 $61,299 $59,111 $52,520 $67,743 $69, % 8.3% 9.3% 5.3% 2.6% 2.5% Q Q17 Deposits Capitalization Index $69,405 $73,141 $86,214 $95,247 $100,804 $102, % 13.3% 14.9% 18.4% 15.3% 16.9% Q Q17 22

23 October 2017