4q17 and fy17 investor presentation - mabe · 2018-02-16 · this presentation is strictly...

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4Q17 and FY17 Investor Presentation

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Page 1: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

4Q17 and FY17 Investor Presentation

Page 2: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

DisclaimerGENERAL INFORMATION

The following material is submitted by way of general information regarding Controladora Mabe, S.A. de C.V., “Mabe”, as it stands to date. Said information ispresented in a summarized fashion and is not intended to be comprehensive. Nor does it constitute a recommendation for potential investors. This presentation isstrictly confidential and shall not be divulged to any other person.

No representation or guarantee, either expressed or implied, is intentional, and its exactness, precision or comprehensive information herein presented shall not beemphasized. This presentation may contain declarations that express the expectations of management regarding future events or results in lieu of historic events.These forward-looking declarations imply risk and uncertainty that may cause the real results to differ materially from those forecast, and Mabe cannot ensure thatsaid declarations will prove to be correct. These risks and uncertainties include factors related to all the economies where we operate, which in turn may showvolatility and may be adversely affected by factors pertaining to other countries, related to the business of retail sales, that by its very nature is cyclical and linked tothe highly competitive industry of which Mabe is a part and in which it operates.

COMMENTS ON FINANCIAL INFORMATION:

This presentation contains our unaudited financial information. EBITDA is not a measure of financial performance under IFRS and should not be considered as analternative to net income or operating income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity.

INDUSTRY & MARKET DATA:

Certain data is based on our estimates, which are derived from our review of internal surveys, as well as independent sources.

TERMS AND CONDITIONS OF USE:

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize any information contained herein. Decisionsbased on information contained herein are the sole responsibility of the person viewing it. In exchange for utilizing the information you agree to indemnify and holdMabe, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including butnot limited to attorneys' fees) arising from the use of the above mentioned information or from any decisions that the viewer makes based on such information.

These terms and conditions and this Site are governed by the federal laws of Mexico applicable therein, excluding any conflict of laws which would lead to theapplication of any other laws. You hereby irrevocably submitted to the federal courts located in Mexico City for any disputes or matters arising from, connected with,or relating to this information or any related matters.

2

Page 3: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

Solid top-line performance; sales and volume rose 8.6% and 5.0%, however, EBITDA scaled back

Further strengthened our market share in all of our geographies

Record CapEx as part of new projects with GEA-Haier

Full Year Summary 3

Gross and net debt reduction of 0.8% and 4.9%, respectively

Improved debt maturity profile with new Club Deal

Page 4: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

4

On January 22, 2018, the Trump administration announced Tariff-Rate Quotas (TRQs) on imported Large Residential Washers from certain countries

Mabe will not be affected by these TRQs as we do not export LRWs to the US

Mabe exports laundry centers and dryers, which are not within the scope of these tariffs

Mabe does not foresee further TRQs

LRW Tariffs

Page 5: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

54Q17 Sales by Core Business and Region

4.7%3.5%

Total Mabe

100%

32%

35%

26%

7%

% Δ in LC % Δ in USD

2.5% 0.8%4.9%

Latin America

25%

22%

57%

15%

6%

International

4%

34%

37%

19%

10%

5.3%

6.5% 4.3%

North America

46%

38%

27%

31%

4%

Mexico

25%

31%

29%

29%

11%

(0.2%)

Page 6: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

4Q17 Volume, Sales and EBITDA

Volume Sales EBITDA

6

13.6% 12.4% 7.6%

Margin

104 100

65

4Q15 4Q16 4Q17

767

813

851

4Q15 4Q16 4Q17

2,990

3,268

3,342

4Q15 4Q16 4Q17

Figures in US$MM, unless otherwise shown

Page 7: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

FY17 Sales by Core Business and Region

8.1%8.6%

Total Mabe

100%

31%

36%

26%

7%

8.4%

11.9% 7.0%

Mexico

25%

29%

31%

27%

13%

North America

47%

37%

29%

30%

4%

7.9%11.3%

% Δ in LC % Δ in USD

7.9% (4.8%)

6.4% (9.4%)7.9%

Latin America

23%

22%

54%

18%

6%

International

5%

35%

38%

17%

10%

7

Page 8: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

FY17 Volume, Sales and EBITDA

Volume Sales EBITDA

8

10.7% 10.3% 8.1%

Margin

10,366

10,890

11,419

FY15 FY16 FY17

295 282

240

FY15 FY16 FY17

2,747 2,7362,959

FY15 FY16 FY17

Figures in US$MM, unless otherwise shown

Page 9: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

4Q and FY17 Results Overview 9

Figures in US$MM, unless otherwise shown

4Q 4Q 4Q 4Q

2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016

32 25 30% 637 670 (5%) 2.65 2.47 0.08x 3.25 4.20 (0.23x)

FY FY FY FY2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016

11,419 10,890 5% 2,959 2,736 8% 240 282 (15%) 8.1% 10.3% (2%)

EBITDA MARGINUnits Sales EBITDA

FY FY FY FY2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016

139 103 36% 637 670 (5%) 2.65 2.38 0.27x 3.25 4.20 (0.95x)

Net Interest CoverageNet LeverageNet DebtCapEx

4Q 4Q 4Q 4Q

2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016

3,342 3,268 2% 851 813 5% 65 100 (36%) 7.6% 12.4% (5%)

Page 10: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

FY17 Free Cash Flow 10

32.8

Figures in US$MM, unless otherwise shown

Page 11: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

Figures in US$MM, unless otherwise shown

FY17 Free Cash Flow 10

Main deterrents:- US$15.8MM product recall- US$5.2MM impact from raw material inflation

53.8

Page 12: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

$778

$637$670

Gross Debt

Net Debt(4.9%)

(0.8%)

Short Term + CMLTD Long Term

FY16

FY16 FY17

FY17

Debt Profile

4.2%

95.8%

$784

New Club Deal - duringDecember 2017, we

refinanced our 2015 Club Deal, with a new US$72MM in MXN Club Deal, thus improving ouramortization schedule and our

debt currency mix

481

175

24 24 24 25

8

8

8 4

2018 2019 2020 2021 2022 2026

Notes 2019 Private Placement Club Deal ST Debt CAD Loan

2.1%

97.9%

11

Figures in US$MM, unless otherwise shown

Page 13: 4Q17 and FY17 Investor Presentation - Mabe · 2018-02-16 · This presentation is strictly confidential and shall not be divulged to any other person. No representation or guarantee,

Outlook for 2018 12

Strong US momentum – incremental demand for products in the US

Sourcing efficiencies

Additional business with Haier is starting to materialize. We are fulfilling demand for narrow products in LatAm

Challenging environment in Argentina, Chile and Peru

Net debt reduction. Actively reviewing bond refinancing alternatives