Corporate Presentation March 2015 InRetail overview Multi-format - - PowerPoint PPT Presentation
Corporate Presentation March 2015 InRetail overview Multi-format retailer with exclusive focus in Peru Leading positions in its 3 segments: #2 supermarket chain #1 pharmacy chain #1 shopping center operator
March 2015
Multi-format retailer with exclusive
focus in Peru
Leading positions in its 3 segments:
#2 supermarket chain
#1 pharmacy chain
#1 shopping center operator
Controlled by Intercorp Peru, one of
Peru’s largest business groups
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1 As of March 17, 2015
Note: Selected companies
Market cap1 : ~US$3.2bn Market cap1 : ~US$1.5bn IPO entity 3
Sales area / GLA # Employees # Stores / S.Centers
N/A 10,697 837 607,120 sqm2 435 269,718 sqm 14,598 101
Supermarkets Pharmacies Shopping Malls
Adjusted EBITDA
185 202 232
Revenues
2,086 349 3,757 6,147 604
2014 (S/. millions) 60.7% 33.7% 5.6% 37.4% 29.9% 32.7% % of Revenues % of Adj. EBITDA
201
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4 1 2 3 4
Real GDP Growth
Peru
Source: IMF.
Latin America¹
GDP per capita
(2014, US$ 000) (2008-2014 CAGR)
1 Average Real GDP growth of Colombia, Brazil, Chile, Mexico
Source: Peruvian Central Bank and IMF
~1.8x
Source: Ipsos-Apoyo, 2013
Population by socio-economic category
% of total population
SEC
% of total population
Annual Income
2003
51% 5% 15% 29%
2013
38% 11% 23% 27%
+14%
$ 45,962 $ 22,852 $ 14,455 $ 8,777 $ 6,163
A B C D E
5.6% 3.1%
6.6 8.4 10.8 11.1 12.8 14.9
Peru Colombia Brazil Chile Mexico Argentina
Average: US$ 10.8
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2.1 3.0 3.6 4.1 5.2 19 23 33 44 67 54 90 113 130 226
Source: Businessmonitor.
Supermarkets Pharmacies Shopping Centers
Colombia Chile Brazil Peru Colombia Chile Brazil Peru
Sales of Retail Pharma per capita - US$ (2014)
Median ex-Peru: 122
~2.3x
Source: ACCEP & INEI. Chile Brazil Peru
Malls per million people (2013)
Colombia Mexico
Sales area per capita - m2/1,000 inhabitants (2014)
Median ex-Peru: 38
~1.7x
Mexico
Median ex-Peru: 3.9
~1.8x
Mexico
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Source: Businessmonitor.
2005 2006 2008 2009 2010 2011 2004
SPSA and Interbank launch the Vea Visa credit card SPSA launches Vivanda and Plaza Vea Super formats First mall
(Chiclayo) Inkafarma opens in Plaza Vea First power center is launched Aggressive expansion of malls and supermarkets Acquisition of InkaFarma International bond placement International bond placement
SPSA TURNAROUND PERIOD
2007
Expansion into provinces
2012 2013
Partnership with Tarjeta Oh! Inauguration of
Salaverry International bond placement International bond placement Initial Public Offering USD $460 MM
Revenues Million Soles (S/. mm)
2014 3,757 2,086 349
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#2 largest supermarket chain #1 supermarket brand Compact formats provide flexibility to grow 17 secured locations First to enter in 16 out of the 21 cities outside Lima where
there’s a modern supermarket present
Ranked 8th among the best places to work in Peru1/
Source: Nielsen.
1/ Within the category of more than 1,000 employees in 2014.
Overview Formats
Compact Hypermarkets (79%) Supermarkets (14%) High-end (7%) Other (0%) 2,000 – 5,000 500 – 2,000 900 – 1,200 700 – 2,000 61 / 25 29 / 6 8 / 0 3 / 0 Sales area range (m2) # of stores Total / Provinces US$ 1.3bn Revenues Brands
Note: Figures as of December 2014. Plaza Vea Super includes Plaza Vea Express
Other
Market share evolution
% of sales
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60% 52% 44% 44% 40% 39% 27% 30% 33% 31% 34% 34% 13% 18% 23% 25% 26% 27%
2005 2008 2011 2012 2013 2014 Cencosud SPSA Tottus
#1 pharmacy chain Largest and nationwide pharmacy footprint “Every day low price” strategy supported on: Increasing bargaining power with suppliers Highly profitable portfolio of private labels “Love brand” Stores Small, standardized formats (120 m2) Low capex 100% leased stores with proven renewal track record Operations Assisted sales Incentives bonus for overall and private label sales Lower costs based on volume and efficiencies
32% 28% 41% US$ 0.9mm ~ US$ 0.1mm ~ US$ 0.5mm 837 ~7,000 1,456
# of Stores Annual sales per store Total Market US$2.1bn
Other chains Mom & Pops
Player
Note: figures as of December 2014. Source: IMS.
Modern Market US$1.2bn
47% 53%
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Overview Successful business model
Pharmaceutical retail market
11.3 5.6 4.5 4.2 2.5
#1 shopping center operator under Real Plaza brand Nationwide premium portfolio of 20 locations totaling
590k sqm of GLA
Preferred partner for retailers (~94% occupancy) Secured landbank to sustain growth Contribution from the GLA added during 2014 is not fully
reflected in our results
Inaugurated Real Plaza Salaverry with 73k sqm in
May 2024
Acquired Real Plaza Centro Civico with 41k sqm in
August 2014
Expanded our malls throughout the year, adding
41k sqm
8k sqm of expansion under construction as of
December 2014 to be opened in 2014
Median ex-Real Plaza: 4.4
Million visitors
1/
Source: ACCEP 2013. 10.3mm visitors as of May 2014.
1/ Includes 2.5mm visitors from the shopping centers owned by third
parties.
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Overview Secured Growth Average monthly visitors
227 227 228 249 249 253 261 270 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Openings Same Store Sales
2.1% 2.4% 4.8% 5.2% 2.6% 4.9% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
0.4% 4.0% 6.9% 9.3% 10.8% 8.2% 5.9% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Pharmacies Supermarkets
297 319 336 399 425 499 542 553 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 610 636 675 725 731 754 787 837 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Shopping Malls
GLA (‘000 sqm)
Pharmacies
N° Stores
Supermarkets
Sales Area (‘000 sqm) N° Stores 88 88 90 98 98 98 100 101 N° Malls 13 13 13 15 15 16 17 17
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Supermarkets (% of sales)
39% 21% 12% Others 13% 13% 13% Others 54%
Source: Company filings. Brand awareness - IPSOS 2013. Note: Source Nielsen, market figures refer to modern channel as
Source: IMS, InkaFarma estimates. Brand awareness - Arellano Marketing 2011. Note: Market figures refer to modern channel as of December 2014. Source: Asociación de los Centros Comerciales del Perú (ACCEP). Note: Market figures refer to modern channel as of 2013.
27% 34% 53%
Pharmacies (% of sales) Shopping Centers (% of GLA)
20%
1st 1st 2nd
Plaza Vea is the most remembered brand among supermarkets InkaFarma is the brand that more Peruvians aspire to consume Real Plaza is the shopping center
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Huancayo Piura (2) Chiclayo Trujillo Arequipa Juliaca Chimbote Lima (8) Cajamarca Cusco
Total sites: 20
Total GLA (m2): 589,688
Total stores: 837
Total stores: 101
Total sales area (m2): 269,718
(7) (5) (29) (21) (16) (14) (10) (5) (14) (27) (28) (4) (6) (39) (17) (38) (11) (37) (363) (56) (47) (38) Huánuco (3) Ica Huancayo (2) Chiclayo Trujillo (5) Chimbote (3) Tacna Juliaca Arequipa (2) Piura (3) Chincha Lima (70) Talara Puno Sullana (2) Cajamarca Huanuco Cusco(2)
17 secured locations
Lima Provincias (1) (2) Pucallpa Note: As of December 2014. Pucallpa Pisco
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Supermarkets Pharmacies Shopping Centers
66 21 63 113 Q4'13 Q4'14 2013 2014 160 202 475 604 Q4'13 Q4'14 2013 2014 1,492 1,738 5,322 6,147 Q4'13 Q4'14 2013 2014
Margin 1.2% 1.8% 4.4% 1.2%
Million Soles (S/. mm)
Full Year 2014 Highlights
Revenues
Margin 8.9% 9.8% 10.7% 11.6%
Income vs. 2013
independent capital structures and more transparency
annual savings from lower interest expenses)
S/. 138.4 mm and exchange loss of S/.114.5 mm
Million Soles (S/. mm)
Net Income
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66% 67% 65% 64% 34% 33% 35% 36%
Q4'13 Q4'14 2013 2014
InRetail Shopping Malls InRetail Consumer
Million Soles (S/. mm)
66% 64% 58% 56% 34% 36% 42% 44%
Q4'13 Q4'14 2013 2014
Revenues Revenues
63 110 215 349 Q4'13 Q4'14 2013 2014 38 68 115 202 Q4'13 Q4'14 2013 2014
Net Rental Margin 75.9% 80.2% 82.9% 82.4% 7.1% 7.1% 8.5% 8.2% Margin
1,439 1,633 5,142 5,833 Supermarkets Pharmacies 123 133 364 415
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26 24 26 38 36 43 55 68 Q1 Q2 Q3 Q4 2013 2014 45 42 42 81 55 44 48 85 Q1 Q2 Q3 Q4 2013 2014 104 101 110 160 117 131 154 202 Q1 Q2 Q3 Q4 2013 2014 34 36 43 41 39 46 52 49 Q1 Q2 Q3 Q4 2013 2014
Million Soles (S/. mm)
InRetail Consolidated (+27.0 YoY) Pharmacies (+19.5% YoY) Supermarkets (+10.0% YoY) Shopping Malls (+75.5% YoY)
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Million Soles (S/. mm)
Financial Debt
Capex
658 1,034 792 2012 2013 2014
Capex by Quarter 2014
114 242 333 104 Q1'14 Q2'14 Q3'14 Q4'14
4.0x 3.6x 3.5x 4.0x 4.0x
1.3x 2.9x 3.1x 3.6x 3.6x
2012 2013 LTM Q2'14 LTM Q3'14 2014 Debt/EBITDA Net Debt/EBITDA
InRetail Shopping Malls Bond Issuances InRetail Consumer Bond Issuances
Debt/EBITDA Net Debt/EBITDA Debt Cash Net Debt 1,668 1,125 542 1,722 324 1,398 2,226 238 2,028 2,446 285 2,160 1,827 201 1,627
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InRetail Consumer
Debt / EBITDA: 4.0x Net Debt / EBITDA: 3.6x
Total Consolidated Debt: S/. 2,446 mm
As of December 31st, 2014 Debt Cash Net Debt 1,347 1,168 1,095 976 168 131 215 306 1,179 1,036 880 670 1,111 1,099 624 691 124 86 81 656 987 1,013 543 35 2.9x 3.0x 2.9x 2.9x 3.2x 2.0x 2.4x 2.5x 2.6x 2.8x 2012 2013 LTM Q2'14 LTM Q3'14 2014 Debt/EBITDA Net Debt/EBITDA 8.2x 5.4x 5.0x 6.4x 5.5x 0.4x 4.7x 4.6x 5.9x 4.9x 2012 2013 LTM Q2'14 LTM Q3'14 2014 Debt/EBITDA Net Debt/EBITDA 716 63 653 1,111 131 981
Bond Issuances Bond Issuances
InRetail Shopping Malls
Million S/. Million S/.
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71.4% 6.3% 22.3%
Intercorp and Subsidiaries Float NG Pharma
Shareholders
Name Position Carlos Rodríguez-Pastor Chairman & Director Ramón Barúa Director Julio Luque Director Pablo Turner Director Luis Carranza Director
Board of Directors
As of December 31, 2014
73%
Total Consolidated Debt: S/. 2,446 mm
IPH1
100% 100% 99.98% 100% 100% 100% 100% 100% 100%
IPH2 RP IPM
Covenant IRC Bond Net Debt/EBITDA 2.8x <3.75x Covenants IRSM Bond Total Debt/Total Assets 37.2% (<60%) Secured Debt/Total Assests 2.6% (<30%) EBITDA/Interest Expense 2.28x (>1.75x) Unencumbered Assests/Unsecured Debt 242.1% (>150%) Coverage Ratio 2.8x Coverage Ratio 2.5x Coverage Ratio 3.2x S/. mm Bonds 418 Other Debt 209 Total Debt 628 Debt/EBITDA 2.7x Net Debt/EBITDA 2.2x S/. mm Bonds
39 Total Debt 39 Debt/EBITDA 0.2x Net Debt/EBITDA 0.0x Consolidated S/. mm Total Debt 1,347 Debt/EBITDA 3.2x Net Debt/EBITDA 2.8x S/. mm Bonds
73 Total Debt 73 S/. mm Bonds
3 Total Debt 3 Consolidated S/. mm Total Debt 1,111 Debt/EBITDA 5.5x Net Debt/EBITDA 4.9x S/. mm Bonds 681 Other Debt
681 S/. mm Bonds 1,035 Other Debt
1035 Debt/EBITDA 4.0x Net Debt/EBITDA 3.6x
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This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities. Any
statements. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended. This presentation includes forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current beliefs and expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and assumptions, including, among other things, general economic, political and business conditions, both in Peru and in Latin America as a whole. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are intended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Therefore, our actual results could differ substantially from those anticipated in our forward-looking statements. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. We and our affiliates, agents, directors, employees and advisors 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. This material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information in this material.
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For more information please contact: ir@inretail.pe www.inretail.pe