2 3 Highlights Cencosud 1Q13 for 4 Operational & Financial - - PowerPoint PPT Presentation

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2 3 Highlights Cencosud 1Q13 for 4 Operational & Financial - - PowerPoint PPT Presentation

Dec 30, 2023 651 likes •964 views

2 3 Highlights Cencosud 1Q13 for 4 Operational & Financial Highlights 1Q13 was a quarter of integration of Colombian supermarkets First complete quarter operations after the acquisition Continuous improvement in the

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2

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for

Cencosud

Highlights

3

1Q13

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FirstQuarter2013

Operational & Financial Highlights

  • 1Q13 was a quarter of integration
  • First

complete quarter

  • f Colombian supermarkets
  • perations after the acquisition
  • Continuous improvement in the consolidation of Johnson

in Chile

  • Gross margin improvement from Brazilian operations
  • Department Store division inaugurated the first Paris store

in Peru

  • Chilean market thriving
  • Key Financials
  • Revenues increased 18% YoY in USD
  • Adjusted EBITDA grew 9% YoY
  • Net income decreased 62% YoY

4

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Revenues evolution (US$bn) Adjusted EBITDA (US$mm) and margin (%)

6.7%

1Q 2012 1Q 2013

Solid revenue and adjusted EBITDA growth despite extraordinary costs

+18% 1Q 2012 1Q 2013

9%

6.2%

Adjusted EBITDA by Country

1Q13 1Q12

Colombia 1% Peru 8% Brazil 25% Argentina 28% Chile 38% Argentina 25% Chile 37% Peru 7% Colombia 10% Brazil 21% 5

*Figures include the provision. Excluding this effect adjusted EBITDA growth was 23%, an improvement of 30 bps in EBITDA margin

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SG& A impacted by extraordinary provision

Consolidated (USD million) 1Q12 1Q13 1Q13

Sales 4,450 5,229 5,229 SG&A 993 1,224 1,266 SG&A over sales (%) 22,3% 23,7% 24,2%

Excludes the USD 40 million provision

  • SG&A expenses impacted by Colombia Integration & one-off provision in financial services
  • Excluding these factors SG&A expenses over sales was 23.7%
  • Cost-cutting initiatives

* Excludes segment others

SG& A by division / Sales by division *

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  • Chilean business showed a strong performance
  • 2.6% growth in supermarket SSS
  • Costanera & Osorno drove shopping center performance
  • Johnson turning around continues
  • Operational strategies will maintain competitive advantage
  • Solid macroeconomic outlook, retail sector growing

CHILE:

Leader in a thriving market

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Johnson: Integration show ing results

  • Johnson had a strong 1Q13
  • Revenues rose 18% in CLP
  • SSS grew 20%
  • Gross margin rose from

22.1% in 1Q12 to 29.7% in 1Q13

  • With the migration of the Johnson

Distribution Center in January 2013, has finished the integration process with Paris.

  • An Improved seasonal transition

with a shorter liquidation period and early entry of fall fashion, has allowed a significant increase in ending margins in 1Q13.

  • A new celebrity in communicating

and building a close and convenient brand gave Johnson a new positioning and greater visibility in the first quarter.

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results

quarterly

Brazil

Brazilian Operation: Continuing progress

  • SSS growth of 2.3% shows

engagement

  • Gross margin improvement highlights

efficiency

  • SAP implementation on going, ending

the stores incorporation by July and the Distribution Centers by August

  • Unification process of check outs:

Emporium

  • Sales growth despite SAP

implementation ongoing

  • We are already completing the

unification process of vendor contracts among all flags in Brazil

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Colombia Integration Update

  • Rebranding:
  • On march 31st: 2 pilot Jumbo stores in Bogota with an outside

“coming soon Jumbo” sign.

  • Main rational: socio economic level in selling area, sales per

square meter and whether the store is located in a shopping mall

  • r stand alone.
  • Commercial strategy:

JUMBO: Outstanding shopping experience

  • Enhanced offering of top quality fresh food, wider aisles, fewer

promotional material and impeccable stores.

  • Outstanding service.
  • Assortment redefinition.

METRO: Saving without sacrificing quality

  • Good quality of fresh food, clean and cheerful stores, good

service, strong value communication.

  • Inventory reduction by selling out low turnover sku’s
  • Cultural Transition:
  • Training Program: All employees received an induction program on

Cencosud´s culture and values 10

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895 supermarkets & 2.3 mn of m2 1Q13 Vs. 793 supermarkets & 1.8 mn

  • f m2 in 4Q12

Considers 96 stores & 0.4 mn of m2 of Colombian supermarkets

Openings 1Q13 vs. 4Q12

78 stores & 0.4 mn of m2 in 1Q13 (1 Johnson closing) Vs. 78 stores & 0.4 mn of m2 in 4Q12 Considers 96 stores & 0.4 mn of m2 of Colombian supermarkets

Openings 1Q13 vs. 1Q12

* Includes 96 new supermarkets and 431,040 sq meters from the Colombian operations.

+35% increase in selling space +1% increase in selling space +6% increase in selling space +30% increase in selling space

6

markets

Super

1

Department

Store

169

markets*

Super

5

Shopping

Centers

1Home

Improvement

4

Department

Store

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Results

By Business

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Source: Cencosud. Figures converted to USD, exchange rate by the end of March 2012 and 2013

SSS evolution by country in local currency

SUPERMARKETS

Adjusted EBITDA evolution (US$ mm) Revenue evolution (US$ bn)

+19% +11%

1Q 2012 1Q 2013 1Q 2012 1Q 2013

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HOME IMPROVEMENT

SSS evolution by country in local currency Adjusted EBITDA evolution (US$mm) Revenue evolution (US$bn)

+11% +6%

1Q 2012 1Q 2013 1Q 2012 1Q 2013 1Q12 1Q13

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DEPARTMENT STORES

* Non comparable figures. In 1Q13, SSS consolidate Johnson stores.

Adjusted EBITDA evolution (US$ mm) Revenue evolution (US$ bn)

+15% +38%

1Q 2012 1Q 2013 1Q 2012 1Q 2013

SSS evolution by country in local currency

1Q12 1Q13

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Adjusted EBITDA evolution (US$ mm)

SHOPPING CENTERS

Revenue evolution (US$ bn)

+39%

1Q 2012 1Q 2013

+47%

1Q 2012 1Q 2013

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FINANCIAL SERVICES

Gross loan portfolio evolution

CHILE ARGENTINA PERU

Provision/ Loans (%)

406.317 418.316 429.526

1Q11 1Q12 1Q13

MM CLP

7,2% 7,6% 7,9% 1Q11 1Q12 1Q13 185 239 277 1Q11 1Q12 1Q13

MM USD

9,1% 6,9% 5,4% 1Q11 1Q12 1Q13 44 75 1Q12 1Q13 11,5% 14,5% 1Q12 1Q13 Provision/ Loans (%) Provision/ Loans (%)

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Financial Structure

Cencosud

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Financial Ratios

Net debt evolution (US$bn)

1Q13 2012 2011 2010 2009

Interest coverage

1Q13 2012 2011 2010 2009

Net leverage (net debt/EBITDA)

1Q13 2012 2011 2010 2009

Total debt / equity

1Q13 2012 2011 2010 2009

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Breakdow n by issuer Amortization schedule (US$mm) Breakdow n by currency Breakdow n by interest rate

Source: Cencosud Note: Includes cross-currency swaps Note: Includes cross-currency swaps

Cencosud S.A. Subsidiaries Variable rate Fixed rate 20

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Capital Raise

  • Pre-emptive rights period concluded

in March

  • 299,688,946 shares subscribed

MANAGEMENT STOCK OPTION PLAN

  • 300 employees entered retention

plan

  • Options issued in 2009; exercised in

April 2013 NEW BOARD MEMBER

  • Independent members: Richard

Büchi and David Gallagher

  • Büchi takes seat previously

controlled by Chairman

  • Demonstrates high standard of

Corporate Governance

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HOME IMPROVEMENT

Chile 22

Regional Drivers

GDP per capita 2012, current US$ GDP per capita 2015 Forecast, current US$ Population 2012, (millions) Cities w ith more than 200,000 inhabitants

11,576 12,350 42.2 17 15,410 18,468 16.6 12 7,855 9,038 47.1 29

Low penetration / High potential format.

Thousands of Homes per Big Box

Encouraging economic and demographic trends.

Argentina Peru Brazil Colombia

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HOME IMPROVEMENT Local Market Drivers

  • Intense

building activity in housing (public & private) and infrastructure

  • Large scale mining projects
  • Refurbishing of old houses in

main cities (programs and subsidies)

  • 15%
  • f

the reconstruction program budget (2010 earthquake) will be executed this year

  • Public housing programs
  • Long

term mortgage stimulus (up to 30 years)

  • New
  • penings

due to Carrefour acquisition (plug and play business model)

  • People

invest in home goods due to uncertainty

  • People

is refurbishing houses

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24

HOME IMPROVEMENT Business Highlights

4 stores

2012 Financials:

  • Sales: MM US$ 2,215
  • EBITDA: MM US$ 190
  • EBITDA margin: 8.6%

1Q13 Financials:

  • Sales: MM US$ 592
  • EBITDA: MM US$ 54
  • EBITDA margin: 9.2%

#2

31 stores

#2

47 stores

#1

Total 1Q13:

82

Stores

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HOME IMPROVEMENT Strategic Initiatives

Home Improvement Division is currently involved in the following strategic initiatives:

Multichannel Strategy

Developing Home Improvement-specific online presence as a sales and relationship building channel

Lean operations initiative (Store efficiency)

Strategic overhaul designed to streamline operations and maximize employee face-time with customer

Category Management

Devising category-specific plans to boost sales and improve productivity per square meter

Organizational Culture program

Group initiatives designed to maximize employee productivity, loyalty and further improve customer service

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Environment

Overview

  • f

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Country GDP Consumer Confidence Unemployment Inflation Chile

  • 5.0% GDP growth 2013E
  • 4.8% GDP growth 2014E
  • Driven by internal demand
  • IPEC up from 56.8 (March)

to 59.2 (April) 2013

  • Average 2002-2013: 46.46
  • Historical level
  • 2012: 6.4%
  • Negative inflation
  • 2013E: 2.0%
  • BCCh inflation goal

(3% ± 1pp)

Argentina

  • Decreased to 41.65 (May)

from 44.06 (April) 2013.

  • Average 2001-2013: 47.11
  • 7.9% in 1Q13
  • vs. 7.1% in 1Q12
  • Hyperinflation ~ 30%
  • Freezing prices

measures taken in supermarkets division

Brazil

  • 3% GDP growth 2013E
  • Decreased to 112.10 (April)

from 112.3 (March) 2013.

  • Average 1996-2013: 108.39
  • All time high in October

2010: 120.70

  • February 2013: 5.7%
  • Expected between

4 and 5%

  • Target: 4.5%

(2,5%-6,5%)

Peru

  • 6.0% GDP growth 2013E
  • 6.5% GDP growth 2014E
  • 14% GDP per capita growth

in last 4 years

  • Decreased to 54 (April) from

56 (March) 2013.

  • Lowest level since November

2012

  • Average 2009-2013: 52.27
  • Diminishing from

8.3% in 2009

  • 2012: 7% annual

average

  • Decelerating since

January 2012, close to BCRP inflation goal (2% ± 1pp)

  • 2013E 3.0%

Colombia

  • 2012 deceleration driven by

lower investments, consumption and exports. Recuperating on 2H2013

  • 4.0% GDP growth 2013E
  • Increased to 23.70 (April)

from 14.8 (March) 2013.

  • Average 2003-2013: 20.09
  • Diminishing from

12% in 2009

  • 2012: 10.4%
  • 2013E 2.5%
  • BanRep inflation goal

(3% ± 1pp)

Macroeconomic Environment

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The year ahead

  • Colombia:
  • Supermarket Integration
  • Home Improvement
  • Brazil:
  • Better gross margins
  • SAP Integration
  • Department Stores:
  • 4 more openings in Peru
  • Johnson break even by the end
  • f 2013
  • Leverage reduction

2013

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