Crecimiento del Retail Chileno en Colombia Mayo 2012
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Sector Comercio y su impacto….. Los canales modernos y su desarrollo han tenido un impacto significativo: – Expansión de la demanda – Deflación – Dinamizador de la eficiencia industrial – Educación del consumidor – Desarrollo y modernización del canal tradicional
• El Comercio, motor del crecimiento económico – 6.9% en el 2011 • Mayor generador de empleo – mas del 21% 2
Resumen de la Empresa
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Cencosud is a leading multi-format retailer in Latin America…
Key metrics (2011) Colombia
35,360 m2 selling space
Brazil
4 Home improvement sores
380,845 m2 selling space
152 Supermarkets
0.9 million active credit cards (JV with Bradesco)
Peru
288,081 m2 selling space
74 Supermarkets
2 Shopping Centers
0.3 million active credit cards
Number of stores: Selling space: Number of customers: Number of employees:
825 3,121,089m2 800mm 131,505
Credit cards issued: Market capitalizaIon1: Net revenues: Adjusted EBITDA2: Loans outstanding:
4.2mm US$15,108 mm US$15,625 mm US$1,287 mm US$1.5 billion
Stores and shopping centers (2011) Chile
Formats
Total
1,295,240 m2 selling space
Supermarkets
189
269
152
74
-
684
189 Supermarkets
Home Improvement
29
48
-
-
4
81
29 Home improvement stores
Department stores
35
-
-
-
-
35
35 Department stores
Shopping Centers
9
14
-
2
-
25
9 Shopping Centers
262
331
152
76
4
825
2.2 million active credit cards
Argentina
1,121,563 m2 selling space
269 Supermarkets
48 Home improvement stores
14 Shopping Centers
0.9 million active credit cards
Total
Note: Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 1 As of March 15, 2012 2 EBITDA, further adjusted to exclude the effect of exchange differences, increase on revaluation of investment properties, results from price level restatement and negative goodwill associated with Johnson’s acquisition
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‌ with a well-recognized brand portfolio and integrated multi-format strategy‌
Formats
Brands
Market position # 2 Chile and Argentina # 1 Peru # 1 Minas Gerais, # 2 Northeast Region and # 3 Rio de Janeiro (Brazil)
Supermarkets
Department stores
# 2 Chile
Home Improvement
#1 Argentina # 2 Chile
Shopping Centers
# 2 Chile # 2 Argentina
Consumer Finance
Chile: 2.2 million cards Brazil: 0.9 million cards Argentina: 0.9 million cards Peru: 0.3 million cards
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‌and a proven track record in successfully integrating acquisitions
Expansion in key metrics 2006
2011
2011 vs. 2006
# of stores
486
825
1.7x
Selling space (mm sq. meters)
1.9
3.1
1.6x
5,874
15,625
2.7x
495
1,287
2.6x
6,223
13,1082
2.1x
Net revenues ($ million) Adjusted EBITDA ($ million)1 Market capitalization ($ million)
And a new cycle of growth has began
IPO in the Santiago Stock Exchange Chilean market consolidation
During last five years Cencosud has made 8 acquisitions for more than US$2.2 billions
Opened the first supermarket
2012
2011
2010
6
2009
2008
2007
2006
2005
2004
2003
2002
2000
1993
1988
1982
1976
Source: Cencosud, Factset Note: Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 1 EBITDA, further adjusted to exclude the effect of exchange differences, increase on revaluation of investment properties, results from price level restatement and negative goodwill associated with Johnson’s acquisition 2 As of December 31, 2011
Revenues and EBITDA continue their positive evolution
Revenues evolution (USD$ bn)
+12%
EBITDA ($ mm) and EBITDA margin (%) evolution
+25.2%
Revenues in 2011 increased 28%, due mainly to double digit sales growth in all the business divisions Consolidation of Bretas and 72 new openings contributed to sales expansion Full year EBITDA increased by 19% due to better operations performance Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP while 4Q 2010 and 4Q 2011 figures in IFRS; CAGRs calculated in local currency; Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 7
EBITDA comparables (CLP MM) 2011
2010
Net Profit (Loss)
298,426
306,481
‐2.6%
Result of indexation units
‐31,289
‐15,657
99.8%
Financial Income
10,714
16,857
‐36.4%
Finance Costs
‐136,728
‐79,607
71,8%
fluctuation
Income taxes
‐119,198
‐76,169
56.5%
higher loss versus 2010).
‐358
‐661
‐45.9%
67,564
37,573
79.8%
Depreciation
‐120,174
‐102,310
17.5%
EBITDA
627,895
526,455
19.3%
8.3%
8.5%
‐0,2Pt
637,779
528,503
20.7%
8.4%
8.5%
‐0,1Pt
Income taxes Paris Bank Revalued
EBITDA margin
Adjusted EBITDA Adjusted EBITDA margin
Cencosud’s
calculation
of
EBITDA includes a non cash effect that came from currencies (CLP
57,121
mm
Retail operations account for more than 95% of revenues, while Adjusted EBITDA contribution from Brazil has increased to 14%
Diversified revenue breakdown Peru 8%
Brazil 21%
Colombia 1%
Shopping Financial centers services Department 2% 4% Stores 9%
DIY 13%
Argentina 29%
Diversified adjusted EBITDA breakdown1,2 Peru 8% Brazil 14%
Chile 42%
Food retail 73%
Financial services 13% Shopping Food centers retail 14% 54% Department stores 7% DIY
Chile 50%
12%
Argentina 29%
2011 FY revenues of US$15,625 million
2011 FY Adjusted EBITDA2 of $1,287 million
Diverse operational and geographic footprint Supermarkets represent 73% of revenues and core retail operations 96% Brazil currently represents 21% and 14% of revenues and Adjusted EBITDA, respectively Brazil contribution to increase in following quarters subsequent to acquisition of Prezunic Note: Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 1 Breakdown excludes Colombia’s EBITDA of (US$43.9mm) and Other segment’s EBITDA of (US$1,758mm) 2 EBITDA, further adjusted to exclude the effect of exchange differences, increase on revaluation of investment properties, results from price level restatement and negative goodwill associated with Johnson’s acquisition
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Financial Highlights
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Although recent acquisition have increased total indebtedness…
Capex (US$ mm) excl. acquisitions
Net debt evolution (US$ bn)
Total debt evolution (US$ bn)
Increase in financial debt as a result of the acquisition of Bretas (both acquisition funding and debt assumed) Issuance of 144A-RegS bond Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP while 2010 and 2011 figures in IFRS. Figures exclude Prezunic, acquired on January 2, 2012
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‌balance sheet flexibility and solid operational performance have allowed the company to maintain prudent credit ratios Total debt / EBITDA
Net debt / EBITDA
EBITDA / Interest expenses
Financial debt / Equity
Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP while 2010 and 2011 figures in IFRS. Figures exclude Prezunic, acquired on January 2, 2012
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Our strategy going forward
Continue to develop and expand our multi-format and multi-brand approach
Leverage on multi-format business model to drive traffic in stores Materialize synergies across our different business units Develop and expand new formats in our key markets Streamlining distribution and back-office capabilities and improving operating
Focus on operating margins and cash flows
efficiencies
Emphasis on financial discipline resulting in high debt ratings while implementing capital expenditure and expansion plan with sufficient flexibility
Significant opportunities to increase our presence and market share in Expand through growth in selective markets
selected countries
Our leading position, focus on improving profitability and store openings track record provide us with a solid foundation for continued growth
Gain scale and access to attractive locations and strong local brands through Continue to pursue opportunistic acquisitions while maximizing synergies
opportunistic acquisitions in key markets
Successful integration of all of our acquisitions will facilitate our ability to implement synergies
Focus on Brazil and Peru
Enhance customer loyalty
Increase our share of our customers’ total retail spending Competitive prices, quality products, convenient locations, personalized service and an attractive “one-stop” shopping environment
Complementary consumer finance services 13
Principales detalles del Negocio
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Home Improvement: double digit growth led by strong SSS EBITDA evolution (US$ mm)
Revenues evolution (US$ mm) +21%
+25%
+15%
Geographical presence and market position
+12%
SSS evolution by country in local currency
81 stores 38.3%
4 stores 13.9% 4.8%
29 stores
#2 Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency
48 stores
#1
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Department Stores: recovering same store sales growth EBITDA evolution (US$ mm)
Revenues evolution (US$ mm) +16%
+20%
+3%
Market Share by selling space – Chile1
+16%
SSS evolution in local currency
35 stores
40 stores Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency 1 As of September 2011, does not include acquisition of Johnson’s
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Acquisition of Johnson’s
Key considerations
Selling space expansion (‘000s sq. meters)
Transaction summary
In December 2011, we acquired an 85.58% interest in Johnson’s S.A. (“Johnson’s”)
Department store chain operating 40 stores throughout Chile under the Johnson’s brand and an additional 13 stores using the FES brand
Adding 120,000 m2 of selling space, representing a 44% increase over our existing Paris stores Financial highlights
Aggregate purchase price of Ch$32,606 million. Ch $17,576 million used to repay all assumed indebtedness at Johnson’s, while the rest will be used for working capital
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Largest department store presence in Chile (‘000s sq. meters) + +44%
In 2011, Johnson’s registered sales of Ch$118,447 million from its retail operations Integration and objectives
During the next months, we plan to replace all Johnson’s credit cards with Cencosud credit cards,
With the acquisition we will improve our coverage of the low and middle income market segments in Chile
Source: Company filings Note: Cencosud figures as of 4Q11; other figures as of latest reported date (3Q11)
Shopping Centers: leading a new cycle of growth Geographic presence and occupancy rates 25 Shopping Centers 2 Shopping Centers Gross Leased Area: 54,750 m2 95% occupancy rate
#2 9 Shopping Centers Gross Leased Area: 282,693 m2 98% occupancy rate
#2 14 Shopping Centers Gross Leased Area: 227,396 m2 99% occupancy rate
EBITDA evolution (US$ mm)
Revenues evolution (US$ mm) +16%
+17%
+9%
+1%
Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; figures exclude intercompany operations
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Financial Services: increasing presence in Peru and stable credit quality Geographic presence and active cards
Gross loan portfolio evolution by country (US$ mm)
Total Cards 4.2 MM
Credit card penetration by division 4Q 2011
Loan loss allowance as % of all loans
Chile
Argentina
In 4Q11, the company registered an anti-cyclical provision of CLP542mm to anticipate future changes in the macroeconomic environment
In August 2011, we launched our own private label credit card in Peru. We estimate that we will receive the operation license from SBS in the first quarter of 2012 and expect to start operations in the second quarter of 2012.
Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency
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Supermarkets: Supermarkets: leading position in Peru, Chile and Argentina, and runner up in Brazil
#1 45%
Peru
Brazil
74 stores
183 stores1
35% 20%
#2
State of Minas Gerais (23%)
#1 #3
Rio de Janeiro (13%)
Cencosud Supermercados Falabella Peruanos
34%
North East Region (34%)
Chile
Argentina
189 stores
269 stores
#2 27%
#2 22%
684 stores Wal-Mart
Cencosud
SMU
* Dia Stores not include
ď śâ€Ż In the last 12 months, the Supermarket division added 72 stores Source: Public filings, Planet Retail, ABRAS, INDEC Note: Market share in terms of sales; Chile and Peru figures as of September 2011; Peru market share estimated based solely on reported sales from the three main competitors 1 Includes Prezunic acquisition (31 stores) in Rio de Janeiro
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Supermarkets: strong performance in Chile, Argentina and Peru Revenues evolution (US$ bn)
EBITDA evolution (US$ mm) +28%
+31%
+13%
EBITDA breakdown by country, 2011
+27%
SSS evolution by country in local currency
22.8%
8.7% 4.6% -0.3%
Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012
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The Prezunic acquisition positions Cencosud as a leader in yet another regional market in Brazil…
Geographic presence
Investment Highlights Increase exposure to Brazil Market with attractive retail fundamentals Acquisition of a leader in the Rio de Janeiro market Substantial growth opportunities Value creating transaction to Cencosud shareholders
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National ranking market share (%)
4 19 71
94 8
1 4
22 52
Legend
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GBarbosa Supermarkets (including Eletro Show and pharmacies) Perini Mercantil Rodrigues Bretas Supermercados Prezunic Supermercados
#1 Minas Gerais #2 Northeast region #3 Rio de Janeiro
Present in 8 states accounting for approximately 33% of national GDP with aggregate real GDP growth (2005-2009) of 3.4% and 78.6mm inhabitants Source: Company filings, Planet Retail, ABRAS, IBGE Note: Market share by % of industry’s gross revenues
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EASY COLOMBIA • Ventas 2011 • Crecimiento en ventas vs. 2010 • Empleados directos
$ 152.215MM 19.8% 566
La mejor alternativa para el mercado Colombiano La mejor experiencia de compra para nuestros clientes Excelente canal de distribución para nuestros proveedores La mejor oportunidad de desarrollo para nuestros Colaboradores Alto impacto en el mejoramiento de la calidad de vida de los Colombianos
"Cuidar nuestra Gente es cuidar nuestro Cliente”
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