Diapositiva 1

First Quarter
2013
Earning
Presentation
Quilicura Store
May 31, 2013
The Store => the heart of our business model
•
Our strategic asset: The segment C3-D
knowledge
•
•
•
70 years serving the same segment, where
HITES brand is very powerful
The heart of our Business Model is the
Store
•
Store
Location,
Layout,
Look&Feel
Key Factors: Store location, layout and
look&feel, mix of products and customer
service
A very important piece of our
Business Model is the credit access
that we provide to this segment, but it
is not the only one…
Excellent
Customer
Service
Mix of
Products
Retail
Acces to
Credit,
Credit card
Coverage
Department
Store
Format
Solid Risk
Management
Focus on Segment
C3-D
2
First Quarter Income Statement
Cumulative Jan-Mar (Millions of $)
2013
Revenues
Costs of Sales
Gross Profit
Gross Margin
Administrative Expenses (Without Depr/Amrt.)
Distribution Costs
EBITDA
EBITDA Margin
Depreciation and Amortization
EBIT
EBIT Margin
Other Income (Losses)
Financial Income and Financial Cost
Foreign Currency Exchange Differences
Results per Adjustment Units
Income before Taxes
Income Tax Expenses
Net Income
54.081
(34.234)
19.847
36,7%
(14.932)
(464)
4.450
8,2%
(1.572)
2.878
5,3%
(89)
(1.265)
157
(43)
1.638
(213)
1.425
2012
52.444
(33.489)
18.955
36,1%
(14.182)
(493)
4.280
8,2%
(1.323)
2.956
5,6%
(140)
(1.070)
501
(42)
2.205
(281)
1.924
Dif. %
3,1%
2,2%
4,7%
0,6%
5,3%
-5,9%
4,0%
0,0%
18,7%
-2,6%
-0,3%
-36,6%
18,2%
-68,7%
2,5%
-25,7%
-24,1%
-25,9%
3
Revenue growth is pushed by Retail Sales
Consolidated Revenues (MM$)
3,1%
15,2%
2011
2012
2013
11,0%
3,6%
77.275 80.041
42.968
52.444 54.081
54.256
1Q
62.514
2Q
Retail Revenues (MM$)
4,4%
53.014 58.831
3Q
2011
16,9%
9,3%
4Q
2012
2013
2,7%
54.803 56.287
24.900
31.761 33.146
1Q
34.345
40.160
2Q
34.041 37.194
3Q
4Q
4
…and Financial Revenues lowers its pace
Consolidated Revenues (MM$)
3,1%
2011
15,2%
2012
11,0%
2013
3,6%
77.275 80.041
42.968
52.444 54.081
54.256
1Q
62.514
2Q
Financial Business Revenues (MM$)
1,2%
18.068
20.683 20.935
1Q
53.014 58.831
3Q
2011
12,3%
19.911
18.973
2Q
2012
14,0%
22.354
4Q
21.637
3Q
2013
5,7%
22.472 23.754
4Q
5
Highest Same Store Sales in the last four quarters…
and higher than our competitors
Same Store Sales
Competidor
Hites
29,4%
20,9%
14,9%
9,6%
9,1%
9,5%
9,2%9,1%
5,6%
3,7%
3,9%
3,0%
1,6% 1,7%
-0,5%
-0,1% -0,2% -0,6%
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
6
Important Retail Margin increase compensates
lower Financial Margin
Consolidated Gross Margin
0,6%
37,4%
36,1%
2011
2012
38,5%
38,1%
38,3%
37,8%
36,7%
34,9%
1Q
2Q
Retail Margin
35,5%
3Q
2011
24,8%
1Q
24,6%25,2%
2Q
4Q
2012
+3,8%
21,3% 21,0%
2013
24,6%
2013
26,7% 28,4%
21,1%
3Q
4Q
7
Is the retail industry adjusting its model?
Retail Margin Increase (YoY, percentage points)
Falabella Chile
Paris Chile
Ripley Chile
4,0%
4,3%
3,5%
2,0%
0,3%
-0,2%
0,6%
-0,2%
ABCDIN
Hites
La Polar
3,8%
3,0%
1,7% 1,7%
1,5%
0,8%
0,6%
3,8%
2,9%
2,2%
-0,8%
-1,7%
-1,8%
-2,6%
-3,3%
-4,8%
-5,9%
1Q12
2Q12
3Q12
4Q12
1Q13
Financial Margin still shows lower numbers but
the trend is changing…
Gross Margin
0,6%
37,4%
36,1%
2011
2012
2013
38,5%
38,1%
38,3%
37,8%
36,7%
34,9%
1Q
2Q
Financial Gross Margin
35,5%
3Q
2011
-3,8%
59,7% 59,3% 55,6%
1Q
62,5% 61,3%
2Q
59,5% 54,3%
3Q
4Q
2012
2013
66,4% 60,0%
4Q
9
Succesful strategy to improve Retail profitability
Sales by Category (%)
OTROS
DECO
ELECTRO
Own Brand Share (%)
VESTUARIO
44%
44%
38%
38%
13%
5%
13%
5%
1Q12
OTROS
40%
DECO
ELECTRO
+3%
1Q13
VESTUARIO
OTRAS MARCAS
22%
78%
43%
40%
12%
6%
12%
5%
2011
2012
23%
77%
1Q12
OTRAS MARCAS
20%
42%
+1%
MARCAS PROPIAS
1Q13
MARCAS PROPIAS
+3%
23%
80%
77%
2011
2012
10
A more restrictive credit policy showed its effect…
but a more active scenario is expected
2011
9.3%
1Q
2011
8.2%
-1.6%
469
1Q
504
525
485
2Q
4Q
2012
2013
-0.6%
4.0%
485
131,351
3Q
ACTIVE CLIENTS (Miles)
512
121,007
113,792
2Q
2013
0.3%
6.3%
124,058
113,552
120,447
123,438
107,921
-2.4%
2012
131,726
LOANS PORTFOLIO (MM$)
505
3Q
523
519
4Q
11
A more restrictive credit policy showed its effect…
but a more active scenario is expected
AVERAGE DEBT PER CLIENTS M$
-1.3%
229
239
236
2011
0.4%
233
1Q
1.7%
233
234
2Q
2012
2013
2.0%
249
237
3Q
254
4Q
AVERAGE TERM Months
2011
8,45
8,31
7,75
7,41
1Q
2012
8,08
8,05
7,77
7,70
7,58
2Q
2013
3Q
4Q
12
Retailers credit card penetration is still going down,i
…not only explained by credit policy adjustments
Credit Card Penetration (%)
-4%
56%
52%
66%
63%
59%
2012
2013
61%
60%
48%
1Q
2Q
Colocaciones
40%
2011
36%
Retail
37%
18%
19%
18%
42%
45%
45%
1Q11 1Q12 1Q13
3Q
Comercio Adherido
4Q
Avances
29%
27%
30%
29%
16%
17%
18%
17%
55%
55%
53%
54%
2Q11 2Q12
54%
3Q11 3Q12
25%
28%
14%
14%
61%
58%
4Q11 4Q12
13
The Risk Rate is still high… but not for so long
Risk Rate
% Current Non-Renegociated Portfolio (*)
2011
14,3%
12,2%
11,4%
2011
2013
14,0%
13,6%
12,5%
2012
84,7%
83,6%
12,5%
12,0%
82,6%
2012
2013
86,9%
86,3%
84,0%
82,1%
81,3%
10,7%
80,1%
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Risk Coverage Index
102%
94%
96%
96%
96%
94%
89%
1Q11
2Q11
3Q11
4Q11
1Q12
(*) It considers Current and 30 days past due Non-renegociated porfolio
2Q12
3Q12
14
Consistency delivering good results!
EBITDA (MM$) and EBITDA Margin
10.873 10.818
+4,0%
6.503
3.884
4.280
7.101
4.450
12,0%
9,0%
8,2%
8,2%
1Q11
1Q12
1Q13
2Q11
3.513
11,4%
2Q12
4.495
6,6%
7,6%
3Q11
3Q12
14,1%
13,5%
4Q11
4Q12
6.856
7.109
4Q11
4Q12
Net Profit(MM$)
-25,9%
1.924
516
1Q11
1Q12
3.571
3.198
1.425
1Q13
2Q11
2Q12
1.349
1.269
3Q11
3Q12
15
Consolidated Financial Summary
NFD / EBITDA
NET LIABILITIES / EQUITY
3,00
3,00
1,50
2,50
2,00
1,30
2,04
1,91
1,20
1,75
0,90
1,40
1,50
1,00
0,60
0,50
0,30
0,00
0,00
2011
•
•
•
2012
1Q12
1Q13
Financial indicators net of cash were
improved because of the good cash
generation and no new stores have been
opened
Two transactions in 2012 allowed us to
structure the total debt in the long term,
which is adequate to our expansion plan
High cash balance of US$60 millions will
allow us to finance the 2013 investments
0,84
0,83
0,92
1,00
0,94
0,88
0,86
0,89
0,81
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
FINANCIAL DEBT STRUCTURE
Short-Term
Long-Term
11%
80%
89%
20%
1Q12
1Q13
16
Hites accelerates its expansion plan
QUILICURA
Apertura Abril 2013
EDIFICIO PUENTE
Apertura 2013
ALAMEDA 8.286 m2
ANTOFAGASTA 8.580 m2
ESTACIÓN CENTRAL 5.989 m2
OVALLE
Apertura 2013
COPIAPO 4.897
m2
PLAZA DE ARMAS 8.066 m2
PUENTE 4.523 m2
LA SERENA 5.959 m2
MAIPÚ 5.054 m2
RANCAGUA 6.276 m2
CONCEPCIÓN 3.840 m2
SAN BERNARDO 8.000 m2
TEMUCO 6.186 m2
OSORNO 5.600 m2
PUENTE ALTO 5.738 m2
CHILLAN Apertura 2013
Thousands of Mts2
157
Stores
132
107
61
25
6
32
7
68
68
87
87
14
14
71
42
9
12
12
12
13
18
23
28
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
Objective: Duplicate the number of stores in three years
=> 14 new stores between 2013 and 2015
17
Investment Plan
(Millions of US$)
–
–
Investments in CAPEX: US$128
US$ 252 millions
Investments in W/C:
US$124
• Aggressive Investment Plan
• …but low risk. Always doing what we do best. We
have proved it.
18
Hites Why? ... Market valuation
FV/EBITDA y P/E
Yield Dividend (%)
25
FORUS
FV/EBITDA
20
15
FALABELLA
2,50
CENCOSUD
10
RIPLEY
HITES
1,19
0,78
5
1,02
0,55
0
0
–
–
8
16
P/E
24
32
40
Hites
Cencosud Falabella
Ripley
Forus
FV/EBITDA : 7,79
P/E: 12,5
Note: Calculated as stock prices at the close of May 23, 2013.
Financial data of Hites, Falabella and Ripley as of 1Q13, other companies as of 4Q12.
19
First Quarter
2013
Earning
Presentation
Quilicura Store
May 31, 2013