Growth Strengthening Results Sustainability PRESENTATION INVESTOR RELATIONS 1Q-2013 1
CORPORATE* Subfranchise Starbucks Chile BRANDS COUNTRIES COMING SOON Mexico Chile Colombia Argentina BRAZIL COMING SOON 610 Mexico 581 Colombia 29 221 Mexico 106 Argentina 65 Chile 34 Colombia 16 482 Mexico 375 Argentina 64 Chile 43 37 Mexico 37 13 Mexico 13 Subfranchises 205 Associated 43 Subfranchises 2 13 Mexico 11 Chile 1 Argentina 1 2 Mexico 2 53 Mexico 53 Subfranchises 12 831 Units QSR 482 Coffee Shops 118 Units Casual Dining 2
QSR/Coffee Shops Units Country Units Country Units Country Master Franchisee (20 year agreement). First brand in the portafolio since 1989. It has a 19% share in Alsea s consolidated sales. Rights for Sub-franchisee. Joint Venture (20 year agreement). In Alsea s portafolio since 2002. It has a 30% share in Alsea s consolidated sales. Associated units in Chile with an 18% participation. Master Franchisee (20 year agreement). In Alsea s portafolio since 2001, in Mexico since 1990. It has a 24% share in Alsea s consolidated sales. There are more than 410 units in Mexico operated by 8 franchisors. 3
Casual Dining Units Country Units Country Units Country Franchisee (10 year agreement). Acquired by Alsea in 2005; in Mexico since 1994. There are 92 units in Mexico operated by 2 franchisors. Territorial Limitation (Mexico City & surrounded states). Master Franchisee (until June 2023). Acquired by Alsea in 2008; in Mexico since 2007. More than 260 stores worldwide. Exclusivity for the Mexican Territory. Master Franchisee (10 year agreement). Operation in Mexico started in October 2009. Average ticket of $20usd. Exclusivity for Mexico, Colombia, Chile, Argentina & Brazil. 4
Casual Dining Unit** Country Units Country Opening Master Franchisee (10 year agreement). First Unit outside USA. More than 170 stores worldwide. Exclusivity for the Mexican Territory. Brand Rights and Exclusivity (30 year agreement). Acquired by Alsea in 2012; in Mexico since 1996. Rights for Sub-franchisee, 12 subfranchisee units. Exclusivity for the Mexican Territory. Master Franchisee (8 year agreement), Exclusivity for México and Chile. Highest average annual sales per unit in its segment. Ability to develop in Argentina, Brazil, Colombia and Perú. ** Brand in the Fast Casual Segment. 5
(Sinergy/Efficiencies/Economies of Scale) DIA (Distribution Center)* Suport Areas (Shared Services) 4 Distribution Centers More than 150 Cities Visited 1,474 Points of Sale More than 3,850 Weekly Deliveries Support Areas Administration and Finance Human Resources Technology and Information Real Estate and Development Supply Chain Purchasing Production Logistics Distribution * As of March 2013 6
Markets & economy environment Mexico - South America 1Q 13 7
actual markets units million clients served ** Colombia 45 units Chile 78 units Mexico 1,178 units POP 1 GDP 1,2 POP 1 GDP 1,2 POP 1 GDP 1,2 45 million $373 usdbn 17 million $263 usdbn 115 million $1,147 usdbn Population (1) GDP (1)(2) Argentina 130 units POP 1 GDP 1,2 42 million $512 usdbn 1 HSBC Database 1Q 2013 (Estimated 2013) 2 Nominal GDP (USDbn) ** Estimated year end 2012 Brazil Coming soon POP 1 GDP 1,2 197 million $2,294 usdbn 8
GDP (%)* Unemployment rate (%)* 2011 2012 2013e 2011 2012 2013e 1. Mexico s macroeconomic fundamentals keep atracting a rising number of investors. 2. In Chile, inflation has stabilized to an estimated 3% 2012 YE. 3. 4Q GDP surprises to the upside, with a single digit annual growth in Colombia. 4. GDP per capita rises to $12,097 USD by the end of 2012 in Argentina. Mexico s Openness to Trade In Mexico, Openness to trade (% of GDP 2012) at 60.8 shows resilience to the global slowdown despite the fact the 80% of its total exports are destined to the U.S. * HSBC Latin America Economics 1Q-2013 9
1. 43% of total population in Mexico it s between the age of 20 and 50. FF/QSR 12% 2. More than 85% of total population it s between the C, D+ and E socioeconomic levels in Mexico. 3. An average of 8% of income per capita it s spent for food & beverages outside home. MEXICO SHARE 2012 Coffee/bars Casual dining HD/pizza Full service Street stals 9% 4% 1% 52% 22% Market size more than 56 Billion USD Brand share by segment CAGR ( 12-16) 5.7% Hamburger Pizza Coffee Shop Casual Dining 1) billion USD (ER= $12.90 pesos) Source: Euromonitor International (Estimated 2012 2014) 10
South America* Share 2012 1. The South America growth for next 4 years in the franchisee industry it s above 55%. 2. There is an estimated growth of 59% for de Casual Dining category from 2012 to 2014. 3. For the QSR category the estimated growth from 2012 to 2014 is above 46%. 4. The South American growth rate for the next 4 years in the franchise is at 70%. Market size more than 46 Billion USD CAGR ( 12-16) 11.7% FF/QSR Coffee/bars Casual dining HD/pizza Full service Street stals 15% 19% 1% 1% 62% 2% MEXICO SHARE 2012 1) billion USD (ER= $12.90 pesos) Source: Euromonitor International (Estimated 2012 2016) *Includes only Colombia, Chile and Argentina from the LATAM region. 11
Strategy and 1Q 13 guidance 12
Organic Growth Maximize business potential (SSS, organic growth). Regional Expansion Continue growing our brands in new markets. New Segments Continue the search for new concepts complementing our portfolio mix within the Retail segment, capitalizing on the competitive advantages of our Alsea Business Model. New Markets Growth into new markets, leveraging our Business Model. 13
DIVERSIFICATION CONSUMER-RETAIL COUNTRIES Without operation With operation QSR Business oportunity Diversification 14
Total Corporate Units MEXICO LATAM NET GROWTH 2013E 177 28 205 1,161 2012 1,366 2013 1,496 2014 1,631 2015 1,766 2016 CAGR 2014E 2015E 2016E 89 95 95 41 40 40 130 135 135 Annual growth by brand 2013E 2014E 2015E 2016E 13 116 58 4 4 6 1 3 12 23 72 3 4 8 4 4 16 25 72 3 5 6 4 4 16 28 72 2 3 6 4 4 * Growth of units compaund by region. ** Organic growth does not include sub-franchises or associates. 15
(1) According to Company estimates 16
Financial Situation 1Q 13 17
Same Store Sales Better consumption behavior 1Q- 13 SSS 2.2 % ANTAD SSS 1Q- 13 3.80% 12.2% 10.5% 7.8% 2010 2011 2012 1Q- 13 Top Line Initiatives More participation in the Casual Dining Segment Marketing and commercial strategies Continue with units remodeling New units formats Rewards and Loyalty Programs Italianni s acquisition BK master franachise and acquisition 18
Net Consolidated Sales** Consolidated EBITDA** 30% 24% 27% 24% SALES BY BRAND 7% NA 19% 19% 9% 7% 3% 2% $8,996 $10,669 $13,520 2010 2011 2012 Annual growth $13,947 2013* 1% 2% 14% 13% 13% EBITDA BY BRAND 19% 38% 11.2% $1,003 2010 10.5% 11.9% $1,260 $1,609 2011 2012 Margin 12.1% $1,693 2013* * LTM as of March, 2013. ** Million pesos. 19
Debt structure 1Q 13 Capital structure 1Q 13 Bank Debt $2,416 Year % Maturity 2013 14% $338 2014 21% $513 2015 28% $677 2016 37% $888 19% 81% Long Term 19% Short Term $1,567 $849 $3,106 $933 1Q 13 1Q 12 $2,416 $4,039 Net Debt Cash 1Q 12 1Q 13 Net debt / EBITDA 2.9x 0.9x EBITDA / Interest paid 6.2x 7.5x Weighted average cost of debt (2) 5.46% Leverage (3) Stockholders equity 24.6% 4,805 mdp (1) According to bank loan covenants (2) Considers Mexican pesos credit loans and a TIIE (March 2013) of 4.35% (3) Leverage = Net debt / (Net debt + Stockholders Equity) 20
2 100 Average Investment (000 s USD) 3 Annual Revenues / Investment 1 800 1 500 1 200 2 900 600 1 300 0 0 Ebitda Margin - Store Level ROI - Store Level (1) 30% 50% 25% 20% 15% 10% 5% 40% 30% 20% 10% 0% 0% Figures for the last twelve months as of March 2013 Considers an exchange rate of $12.76 pesos (1) ROI = Ebitda at store level divided by investment. 21
AVERAGE DAILY LIQUIDITY STOCK INFORMATION June 14, 2013 Price 33.42 Shares Outstanding 687.8m EV (million MXN) 26,383 EV/EBITDA 2,3 20 15 10 PEERS AVG. 11.8x IPC 10.5x 5 15.5x 15.3 x 12.5 x 7.9 x 8.0 x 8.1 x 10.5 x 9.3 x 9.7 x 9.4 x 24.6 x Alsea Price per Share 1 38.0 Alsea * 0 34.0 30.0 26.0 22.0 18.0 14.0 10.0 June 2012 Aug 2012 Oct 2012 Dec 2012 Feb 2013 April 2013 June 2013 Aug 2013 Oct 2013 Dec 2013 Jan 2013 Feb 2013 April 2013 June 2013 YEAR in a row IPC INDEX KEY STATISTICS June 14, 2013 EV/EBITDA 3 15.5 x P/E 53.2 x ROIC 8.9% ROE 10.9% (1) Stock Market Information (2) Information 4Q-2012 (3) Alsea EV/EBITDA with 1Q13 data 22
1. Leader QSR, Coffee Shop & Casual Dining operator in Latin America 2. High potential growth industry in Mexico and South America 3. Strategic regional partner for global leader brands 4. Competitive advantage and operating leverage through our Share Services Business Model (SCA) 5. Diversified portfolio of leader brands with presence in four countries 6. Proven track record based on profitable growth 7. Experienced executive team and highly trained personnel 8. Solid financial position ready to capture growth opportunities 9. Solid, transparent and institutional Corporate Governance 10. Analyst consensus (15 coverages) is that the average objetive price for the stock at the end of 2013 will be $36.27. 23
Brand 1Q 13 Facts 24
MORE THAN estimated growth PIZZAS SOLD IN 2012 from 2012 to 2014 in the pizza segment MARKET SHARE MAIN BRANDS Domino s pizza Pizza Hut others papa John s 50% 31% 17% 1% 63% Of pizza consumption is home delivery Our deliveries cover 2,052,400 km every week Is like going to the moon 8 times each week! 25
Generated 28% of the ALSEA SALES Coffee consumption Per capital worldwide (Kg/year) Mexico consumes nearly 1.40 kg of coffee per person per year. One aim is to bolster the culture until consumption is similar to that in the United States. 26
MASTER 20 YEARS F R A N C H I S E Acquisition of 98 units THE SISTEM IN MEXICO HAS A TOTAL OF UNITS OPERATORS Inclusion of 206 sub-franchises FAST FOOD MARKET SEGMENTATION Pizza Convenience stores Chicken Burguers 8% 26% 34% 32% 27
WITH ITALIANI S AQUISITION THE CASUAL DINING SEGMENT WENT UNITS CAGR= 38.8% *CAGR = Compound Annual Growth Rate (2008-2012). 28
EXPANSION STRATEGY FOR CASUAL DINING IN SOUTH AMERICA Exclusivity for: MARKET WITH OVER PEOPLE 29
The Cheesecake Factory in LatAm In February 2013, we signed the master franchise agreements for Mexico and Chile with a commitment of 12 openings in the next 8 years. Additionally, there is the option of signing exclusive contracts with Argentina, Brazil, Colombia, and Peru. Exclusivity for: 30
Investor Information Diego Gaxiola Cuevas CFO ri@alsea.com.mx Tel: +52 (55) 5241-7151 Enrique González Casillas Investor Relations ri@alsea.com.mx Tel: +52 (55) 5241-7035 Headquarters ALSEA S.A.B. DE C.V. Av. Paseo de la Reforma #222 3th. Floor Tower 1 Corporativo Col. Juárez, Del. Cuauhtémoc Zip Code 06600, México D.F Phone: +52 (55) 5241-7100 Download the 2012 Annual Report App (Alsea 2012) in Itunes Store. View the online version in www.alsea2012.com 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 forward-looking statements, whether as a result of new information, future events or otherwise. 31
www.alsea.com.mx 32