Corporate PPT May 2015

SACI FALABELLA
CORPORATE PRESENTATION
MAY 2015
CONTENTS
•
The Company
•
Key Investment Highlights
•
Consolidated Statements
•
Appendix
FIVE BUSINESS UNITS – 126 YEARS OF HISTORY
DEPARTMENT
STORES
HOME
IMPROVEMENT
SUPERMARKETS
FINANCIAL
SERVICES
REAL ESTATE
US$ 4,134 m
Revenues
US$ 5,650 m
Revenues
US$ 1,989 m
Revenues
US$ 5,938 m
Loan Book
2,0 million
m2 GLA1
4.6 million
CMR accounts
20 / 18
Malls / Power
& Shopping
Centers
99 stores
239 stores
101 stores
Note: Revenues as of March 2015 LTM. Number of stores/malls and CMR accounts as of March 2015. FX rates as of March 31st, 2015 (626.6 CLP/US$).
Data includes Sodimac Colombia and Aventura Plaza, which do not consolidate.
1. Additionally, the Falabella Group owns 953,000 m2 of additional GLA in free standing stores across the region.
3
PRESENCE IN 6 COUNTRIES IN LATIN AMERICA
DEPARTMENT STORES
HOME
IMPROVEMENT
SUPERMARKETS
FINANCIAL SERVICES
45 stores
311,000 m2
83 stores
684,000 m2
52 stores
183,000 m2
2,300,000 active
CMR cards
25 malls
1,400,000 m2 GLA
25 stores
155,000 m2
57 stores
372,000 m2
49 stores
182,000 m2
1,000,000 active
CMR cards
12 malls
500,000 m2 GLA
18 stores
114,000 m2
34 stores
331,000 m2
800,000 active
CMR cards
1 Mall
26,000 m2 GLA
11 stores
58,000 m2
8 stores
84,000 m2
530,000 active
CMR cards
REAL ESTATE
57 stores
121,000 m2
1 store
9,400 m2
Note: Number of stores, CMR accounts with balance and employees as of March 2015, with the exception of Uruguay, which started operations in April 2015.
Includes Sodimac Colombia and Aventura Plaza in Peru, which do not consolidate.
4
KEY FIGURES
Main Figures
38
439
Total
Revenues
Loan
Book
CMR
Accounts
stores
malls
12,430 M US$
5,938 M US$
+4,600,000
2,600,000 m2
1,950,000 m2
sales area
Mix by Country
Employees in the Region
7% 3%
5%
+14,600
4%
+3,400
7%
+28,400
20%
24%
GLA
EBITDA
Revenues
+50,200
59%
71%
+190
+5,300
Note: Does not consider Sodimac Colombia and Aventura Plaza in Peru, which do not consolidate.
5
CONTENTS
•
The Company
•
Key Investment Highlights
•
Consolidated Statements
•
Appendix
KEY INVESTMENT HIGHLIGHTS
1.
Leadership
in Latam
across
formats
3.
2.
Responsible
growth
strategy
5.
Differentiating
brands
6.
Excecution
capacity of
management
4.
Sustainable
business
development
Customer
centric strategy
7.
Corporate
governance
practices
7
1. LEADERSHIP IN LATAM ACROSS FORMATS
Market Position1
Department Stores
Revenues
Market position
Home Improvement
Revenues
Market position
Supermarkets
Revenues
Financial Services
Market position
CMR Accounts
Market position
2,077 M US$
#1
2,979 M US$
#1
1,000 M US$
#4
2,300,000
#1
916 M US$
#1
804 M US$
#1
988 M US$
#3
1,000,000
#1
605 M US$
#1
1,308 M US$
#1
244 M US$
#2
316 M US$
#4
537 M US$
800,000
Real Estate
Market position
25 Shopping Malls
GLA 1.4 M m²
#1
12 Shopping Malls
GLA 0.5 M m²
#1
1 Shopping Mall
530,000
Only relevant player
Sales / m2 (US$)2
Department Stores in Chile
Home Improvement in Chile
1. Revenues as of March 2015 LTM. Number of CMR accounts, malls and GLA as of March 2015. FX rates as of March 31st, 2015 (626.6 CLP/US$).
2. Sales per square meter as of December 2014. FX rates as of December 31st, 2014 (606.7 CLP/US$).
Sales area considered for Tottus does not include cash area in order to be comparable with peer’s sales area.
Supermarkets in Peru
8
2. RESPONSIBLE GROWTH STRATEGY
Organic Initiatives
Falabella
launches
CMR
Entry to
Argentina, Peru
and Colombia
Falabella
develops its
first shopping
center
Mall Plaza
Sodimac enters
Uruguay
Falabella.com
launched
in Chile
Banco
Falabella
launched
in Chile
1980 1990 1993-5 1998
First Tottus
opened
in Peru
Falabella &
CMR enter
Colombia
Sodimac.com
launched
in Chile
1999
Mergers & Aquisitions
2001
Launch of
Homy
Falabella.com
launched
in Argentina
2002 2003
2004
2005
Falabella &
Sodimac
merge
Falabella
acquires
San Francisco
in Chile
Launch of
Móvil
Falabella
Falabella.com
launched
in Colombia
Sodimac.com
launched
in Colombia
Tottus.com
launched in
Chile
Tottus.com
launched in
Peru
2006 2007 2008 2009 2010-11 2013
Sodimac
acquires
Imperial
in Chile
Falabella
acquires
Casa Estrella
in Colombia
Sodimac.com
launched
in Peru
2014
Sodimac
acquires
Dicico
in Brazil
2015
Sodimac
acquires
Maestro
in Peru
Mall Plaza
acquires Mall
Las Americas
in Chile
9
2. RESPONSIBLE GROWTH STRATEGY
Investment Plan 2015 - 2018
US$ 4.4 bn
140 stores
investment for the
next 4 years
11 malls
Investment (US$ m)
Store and Mall Openings
Stores
Malls
Note: The amounts presented consider 100% of the investment in fixed assets of the Group, including Sodimac Colombia and Aventura Plaza, which do not consolidate in the Financial Statements.
10
3. DIFFERENTIATING BRANDS
Transversal Private Brands Across Formats
Private and Exclusive Brands
11
4. CUSTOMER CENTRIC STRATEGY
Our Customers1
+290
+4.6
million
million
CMR accounts
with a balance
transactions in our
retail businesses
350
million
+1.4
visits to our
shopping centers
in the region
bank accounts with
Banco Falabella
million
300,000
Passengers
travelled using
Viajes Falabella
Customer knowledge through consistent interaction
Commercial
Platform
What does
she like
→
When does
she purchase
How much
does she
spend
→
→
What does
she buy
→
→
Where
does she
purchase
→
Means of
payment
Self Service
Stations
Websites
Mobile
Apps
ATM
Contact
Center
Social
Networks
Points of
Sale
1. Number of CMR accounts as of March 2015. Other data as of December 2014.
12
5. EXECUTION CAPACITY OF MANAGEMENT
Main Executives
16 years
in average
in the Group
CEO
- 20 years -
CFO
- 8 years -
Chief
Planning and
Development
Officer
- 6 years -
Peru Country
Manager
- 26 years -
Colombia
Country
Manager
- 20 years -
Argentina
Country
Manager
- 16 years -
Brazil Country
Manager
- 2 years -
CIO
- 23 years -
Department
Stores GM
- 15 years -
Home
Improvement
GM
- 13 years -
Supermarkets
GM
- 13 years -
Financial
Services GM
- 6 years -
Mall Plaza
GM
- 25 years -
Open Plaza
GM
- 20 years -
General
Counsel
- 20 years -
Employees
+102,000
46%
+75,000
+3.6
30%
employees
women
employees
evaluated
million hours
of training
of employees
belong to a union.
53% in Chile.
Note: Number of employees and number of years in the Group as of March 2015. Other figures as of December 2014.
13
6. SUSTAINABLE BUSINESS DEVELOPMENT
Community
Haciendo
Escuela
91
schools
+81,000
students benefited
Círculo de
Especialistas
+350,000
specialist workers
Financial
Education
Program
Healthy
Eating
Program
Biblioteca
Viva
57 courses tought in
17 schools from
Haciendo Escuela
Implemented in
low- income
schools
9 libraries inside malls
155,000 materials
provided
Environment
Suppliers
+20,000 suppliers
50% SMEs
Partnership with
Falabella
18 certified stores and
1 shopping center
with LEED
pre-certification
30 stores and
19 eco-friendly
shopping centers
Sodimac
Note: Information as of December 2014.
14
7. CORPORATE GOVERNANCE PRACTICES
Board of Directors
Board Committee
Chairman
Carlo Solari Donaggio
2014
Vice-Chairman
Juan Carlos Cortés Solari
2014
Directors
José Luis del Rio Goudie
Sergio Cardone Solari
Carolina del Rio Goudie
María Cecilia Karlezi Solari
Paola Cuneo Queirolo
Carlos Alberto Heller Solari
2003
1986
2011
2003
2014
2002
Independent Director
Hernán Büchi Buc
1996
Audit
Committee
Compensation
and Talent
Committee
Strategy
Committee
Free Float
19%
Presence of an
independent
director at
holding level
and in relevant
subsidiaries
Controlling
Group
consisting of
7 families
Controlling
Group
81%
Note: Information as of 31st March 2015
15
CONTENTS
•
The Company
•
Key Investment Highlights
•
Consolidated Statements
•
Appendix
CONSOLIDATED STATEMENTS
Income Statement
Var %
1Q14
1Q15
Var %
12,070
13.6%
2,751
3,111
13.1%
3,864
4,394
13.7%
944
1,073
13.6%
Gross Margin
36.4%
36.4%
34.3%
34.5%
SG&A Expenses
(2,657)
(3,057)
(679)
(777)
SG&A / Rev enues
(25.0%)
(25.3%)
(24.7%)
(25.0%)
Operational Income
1,208
1,337
265
295
11.4%
11.1%
9.6%
9.5%
276
337
76
93
1,484
1,674
341
389
14.0%
13.9%
12.4%
12.5%
15
12
2
(7)
(USD Million)
Total Rev enues
Gross Profit
Operational Margin
Depreciation + Amortization
EBITDA
EBITDA Margin
Other Income / (Expenses)
Net Financial Income / (Cost)
2013
2014
10,622
(176)
15.1%
10.7%
12.8%
(264)
(54)
(45)
14.5%
11.3%
14.0%
Profit / (Loss) in Associates
30
44
11
11
Exchange Rate Differences
(21)
(66)
(20)
(15)
(152)
(275)
81.2%
(61)
(56)
(7.8%)
0.5%
204
239
17.1%
Non-Operating Profit
Profit Before Tax Expenses
Income Tax
Minority Interest
Net Profit / (Loss)
Net Margin
1,056
1,062
(237)
(210)
(40)
(56)
(88)
(86)
(15)
(14)
731
766
149
169
6.9%
6.3%
5.4%
5.4%
4.7%
13.2%
Note: Financial information at FX rate as of March 31st, 2015 (626.6 CLP/US$).
17
CONSOLIDATED STATEMENTS
Balance Sheet
(USD Million)
Dec 14
Cash & cash equiv alents
Mar 15
(USD Million)
Dec 14
Mar 15
337
234
Other current financial liabilities
1,175
958
Current trade & other receiv ables
2,332
2,293
Current trade & other payables
1,542
1,453
Inv entories
1,627
1,634
Others
456
384
283
288
4,578
4,449
Total Non-Banking Current Liabilities
3,174
2,794
Non-Current trade & other receiv ables
329
330
Other non-current financial liabilities
3,697
3,830
Goodwill
738
729
Others
698
697
6,770
6,807
908
957
Total Non-Banking Non-Current Liab.
4,395
4,528
Total Non-Banking Oper. Liabilities
7,569
7,322
Total Banking Oper. Liabilities
3,933
4,020
11,502
11,342
6,605
6,741
18,107
18,082
Others
Total Non-Banking Current Assets
PP&E & Inv estment properties
Others
Total Non-Banking Non-Current Assets
8,745
8,822
Total Non-Banking Operations Assets
13,323
13,271
Loans & accounts receiv able from clients
3,480
3,504
Others
1,304
1,308
Total Banking Operations Assets
4,784
4,812
18,107
18,082
TOTAL ASSETS
TOTAL LIABILITIES
Shareholders' Equity
TOTAL EQUITY & LIABILITIES
Note: Financial information at FX rate as of March 31st, 2015 (626.6 CLP/US$).
18
FINANCIAL SITUATION
Net Financial Debt / EBITDA
w/o Banking Operations (times)
Debt Profile
w/o Banking Operations
Maestro
effect
18%
Short term
Leverage
4,713 M US$
w/o Banking Operations (times)
Financial Debt1
w/o Banks
41%
59%
Financial
insitutions
Public
Bonds
5.61 years
duration
Note: Financial information at FX rate as of March 31st, 2015 (626.6 CLP/US$)
1. Does not include accrued interests
19
CONTENTS
•
The Company
•
Key Investment Highlights
•
Consolidated Statements
•
Appendix
CORPORATE STRUCTURE
SACI Falabella
94%
Chile
Peru1
Argentina
Colombia
95%
Falabella
100%
Falabella
65%
Sodimac
100%
Sodimac
49%2
CMR
100%
Banco Falab. 65%
Falabella
100%
Saga Falab.
Sodimac
100%
Sodimac
100%
Imperial
60%
Maestro
100%
Tottus
88%
Tottus
100%
CMR
100%
Banco Falab.100%
Brazil
Dicico 50.1%
Uruguay
Sodimac
100%
Banco Falab.100%
Open Plaza 100%
Mall Plaza
60%
Open Plaza 100%
Avent. Plaza 40%2
Mall Plaza
100%
20%
1 Through Falabella Perú S.A.A..
2 Does not consolidate.
21
DEPARTMENT STORES
Business Overview
• 99 stores operating in Chile, Peru, Colombia and Argentina
• Main categories: apparel, home electronics and home decor
• Diverse portfolio of own brands, second generation
Local
market
customization
Differentiation
and exclusive brands in addition to international brands
Own brands
• Leading online retailer
• Operates specialty stores for exclusive and second generation
apparel and footwear brands
Regional Footprint
Revenues
(US$ m, Mar 2015 LTM)
Chile
45 Stores
Peru
25 Stores
Colombia
18 Stores
Argentina
11 Stores
Profitability
Sales / m2 1
(US$, Mar 2015 LTM)
Total: 4,134 US$ m
Note: Figures in US$ converted using the March 31, 2015 exchange rate (626.6 CLP/US$). Number of stores as of March 2015.
1. Sales LTM divided by average m2
22
HOME IMPROVEMENT
Business Overview
• 239 stores in Chile, Peru, Colombia, Argentina and Brazil
• Main categories: construction materials and home improvement
products , carpentry, design furniture and home terminations
Construction
companies
Contractors &
small specalists
• Six formats: Homecenter, Sodimac Constructor, Imperial,
Homy, Dicico and Maestro
DIY
• Expertise in direct selling to construction sector and large companies
Families
• Strong online strategy
Regional Footprint
Revenues
(US$ m, Mar 2015 LTM)
Chile
83 Stores
Peru
57 Stores
Colombia
34 Stores
Argentina
8 Stores
Brazil
57 Stores
Uruguay
1 Stores
Sales / m2 1
(US$, Mar 2015 LTM)
Total: 5,650 US$ m
Note: Figures in US$ converted using the March 31, 2015 exchange rate (626.6 CLP/US$). Number of stores as of March 2015, with the exception of Uruguay, which opened its first store on April 2015.
1. Sales LTM divided by average m2
23
SUPERMARKETS
Business Overview
• Started operations in 2002 in Peru under Tottus brand and entered
Chilean market in 2004 with the acquisition of San Francisco
• Operates 101 stores in Chile and Peru, with three formats:
Supermarkets
Hypermarkets
Bodegas
Private label
products
hypermarkets , supermarkets and Hiperbodega Precio1
Price
positioning
• Increased penetration of private labels
• Developed online platform
Weekly deals
Regional Footprint
Revenues
(US$ m, Mar 2015 LTM)
Chile
52 Stores
Peru
49 Stores
Sales / m2
1
(US$, Mar 2015 LTM)
Total: 1,989 US$ m
Note: Figures in US$ converted using the March 31, 2015 exchange rate (626.6 CLP/US$). Number of stores as of March 2015.
1. Sales LTM divided by average m2
Sales area considered for Tottus does not include the cash area in order to be comparable with peer’s sales area.
24
FINANCIAL SERVICES
Business Overview
• Falabella Financiero offers a mix of integrated financial
products and services.
• Provides customers access to credit, combining the
traditional financial business with the proximity to
customers through retail formats.
• Five business units: CMR Falabella (credit card),
Banco Falabella (bank), Seguros Falabella (insurance
broker), Viajes Falabella (travel agency) and
Movil Falabella (mobile virtual operator)
• Operates in Chile, Peru, Colombia and Argentina
Regional Footprint
Loyalty
Frequency
Immediate needs
Gross Loan Portfolio
(US$ m, Mar 2015)
Chile
2.3 m CMR accounts
95 bank branches
Peru
1.0 m CMR accounts
60 bank branches
Colombia
0.8 m CMR accounts
53 bank branches
Argentina
0.5 m CMR accounts
Transparency
Convenience
Simplicity
Integrated
offering
Loan Loss Provision1
(%, Mar 2015)
Total: 5,938 US$ m
1. Per local regulation (not comparable across the countries)
Note: Figures in US$ converted using the March 31, 2015 exchange rate (626.6 CLP/US$).
25
REAL ESTATE
Business Overview
• Largest operator in Chile and Peru, and one of the leaders
in Latin America:
• Mall Plaza: Operates large shopping malls in Chile,
Entertainment
Shopping
Culture
Sustainable
construction
Peru (through Aventura Plaza) and Colombia.
Meeting
places
• Open Plaza: Operates small shopping centers with
2 or 3 anchor stores, as well as other third-party
Urban centers
minor stores.
Regional Footprint
Integrated Offering2
# Shopping Malls
Mar-14
Mar-15
'000 GLA
Mar-14
Mar-15
Mall Plaza
Open Plaza
CHILE
14
10
24
15
10
25
1,125
234
1,359
1,184
233
1,417
Aventura Plaza
Open Plaza
PERU
4
8
12
4
8
12
258
230
488
274
234
508
Mall Plaza
COLOMBIA
1
1
1
1
26
26
26
26
37
38
1,873
1,951
795
953
TOTAL
Free Standing Stores
1
1. Owned by the company throughout the region.
2. Information for Mall Plaza shopping centers as of December 2014
+2,200
specialty
stores
+390
restaurants
98
cinema
screens
14
medical
centers
9
public
libraries
16
gyms
39
game
areas
11
educational
institutions
3
exhibition
rooms
26
CONTACT INFORMATION
www.falabella.com/inversionistas
[email protected]
Phone: +56 2 2380 2012
Jordi Gaju
Alejandro González
Chief Development Officer
Chief Financial Officer
[email protected]
[email protected]
Isabel Darrigrandi
María Paz Fernández
Head of IR
IR Analyst
[email protected]
[email protected]
DISCLAIMER
This presentation contains forward-looking statements, including statements
regarding the intent, belief or current expectations of the Company and its
management. Investors are cautioned that any such forward-looking
statements are not guarantee of future performance and involve a number
of risks and uncertainties including, but not limited to, the risks detailed in the
Company’s financial statements, and the fact that actual results could differ
materially from those indicated by such forward-looking statements.