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Highlights
Performance by Business
Balance Sheet Financials
Closing Comments
AGENDA
3
Full Year Highlights
2015 2016
2015 2016
10,333,00110,991,338
REVENUES
-6.0%
ADJUSTED EBITDA
NET PROFIT
2015 2016
765,955
684,467 +11.9%
Mg 6.2% 7.4%
231,985
387,798
+67.2%
+7,8%
+27.9%
+119.0% 3.8%2.1%
Resilient revenue growth in Chile namely Department Stores,
Home Improvement and Supermarkets. In local currency, revenues
grew across all countries except Brazil and same store sales (SSS)
improved in most markets and businesses, compared to 2015.
Excluding FX effects, profitability in Chile, Argentina, Peru and
Colombia remained strong (up double digit YoY in Argentina and
Peru)
At a consolidated level, Financial Services and Department Stores
stood out in terms of revenues, up 7.2% YoY
In terms of Adjusted EBITDA, Cencosud reported a 11.9% growth
YoY reflecting currency depreciation and macroeconomic
slowdown and Adjusted EBITDA margin expanded 119 basis points
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
4
4Q15 4Q16
4Q15 4Q16
4Q15 4Q16
Fourth Quarter Highlights
-6.5%3,048,854 2,850,956
REVENUES
284,403220,313
-22.5%
ADJUSTED EBITDA
187,536
157,453
NET PROFIT
Mg 9.3% 7.7%
+6.9%
-11.6%
+13.7%
-16.0%
5.5%6.2%Mg
Despite a challenging macro environment with FX headwinds and
particular events in some markets, Cencosud’s financial results
remained healthy year over year.
Chile and Colombia remain strong and healthy reporting revenue
growth driven by positive SSS in Supermarkets and Home
Improvement. In local currency we had positive revenue growth
in all businesses across the region
In local currency Home Improvement and Financial Services
divisions stood out in terms of profitability with double digit
improvement YoY
SG&A remained practically unchanged YoY due to currency
depreciation, wage increases and utility tariffs in Argentina, Peru
and Colombia, and the tax reform for Shopping Centers in Chile
Net debt to EBITDA of 3.2X times in FY16 from 3.3X in FY15
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
AGENDA
Highlights
Performance by Business
Balance Sheet Financials
Closing Comments
6+88.5%
4Q15 4Q16
4Q15 4Q164Q15 4Q164Q15 4Q16 4Q15 4Q164Q15 4Q16
46,961
Performance by Business 4th Quarter
+4.7%
SUPERMARKETS HOME IMPROVEMENT
DEPARTMENT STORES
SHOPPING CENTERS
FINANCIAL SERVICES
REV
ENU
ESA
DJU
STE
D
EBIT
DA
2,159,5782,013,544
422,258359,634
-14.8%
+14.3% +5.6% +11.2% +50.8%
343,414 361,161+5.2% -6.1%
72,290 67,905+4.8%
49,215
4Q15 4Q16
160,057
120,166
4Q15 4Q16
66,66650,778
4Q15 4Q16
27,893 27,475
4Q15 4Q16
67,17348,197
-21.1% +0.3% -1.9% -15.0%
17,91322,929
-23.8%-1.5%
-28.2% +28,0%
-6.8%
-24.9
6.0%7.4%
14.1%15.8%7.6%8.1% 71.0%92.9% 46.6%38.1%
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
7
Chile Argentina Brazil Peru Colombia
4Q15
4Q16
Performance of Supermarkets 4th QuarterR
EVEN
UES
AD
JUS
TED
EB
ITD
A
• Revenue growth in local currency in all countries except Brazil and Peru• Revenues in CLP declined due to devaluation of ARS (38.5%), PEN (6.7%) & COP (2.9%)• SSS accelerated YoY in Chile (3.8%), Argentina (18.5%) and Colombia (3.3%) despite the
deterioration in consumption. Peru posted a flat SSS of 0.0% and Brazil -6.5%.• Brazil impacted by the moratorium of Rio de Janeiro and Minas Gerais states
• Adjusted EBITDA decreased by 24.9% in CLP, taking into account a high comparison base• Profitability contraction in Chile, Argentina, Brazil and Colombia due to higher promotional activity,
wages increases and increased utility prices• Peru’s gross margin growth partially offset by higher wages and energy costs
4Q15 4Q16
+4.7%
2,159,5782,013,544
4Q15 4Q16
160,057
120,166
-21.1%
+16.6% -6.3% -3.5% +4.7%
683,793 709,006602,847
434,118 401,503 418,946
245,321221,247 226,113 230,226
Mg 7.4% 6.0%
-6.8% -28.0%+4.3%
-9.8% +1.8%
-24.9%
+3.7%
+3.7%
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
8
4Q15 4Q16
422,258
359,634
-14.8%
+14,3%
4Q15 4Q16
66,66650,778
+0.3%
133,993
271,898
16,367
146,014
196,891
16,729
Chile Argentina Colombia
4Q15
4Q16
• Revenue growth in local currency across all countries• Chile posted gradual acceleration driven by better Retail sales and double-digit online sales• Argentina grew in local currency, driven by 15.0% SSS and one store opening• Colombia achieves positive SSS for nineth consecutive quarter
• Adjusted EBITDA, excluding FX fluctuations, increased across all countries of operations• In Chile an increase in retail sales drives margin expansion• In Argentina, higher adjusted EBITDA reflects operating efficiencies, partially offset by higher wages• Colombia posted a positive adjusted EBITDA contribution
-23.8%
+17.5%
-27.6%
+2,2%
+5.4%
Mg 15.8% 14.1%
REV
ENU
ESA
DJU
STE
D
EBIT
DA
Performance Home Improvement 4th Quarter
+9.0%
+9.0%
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
9
Chile Peru
4Q15
4Q16
4Q15 4Q16
+5.6%
343,414 361,161
+5.2%
4Q15 4Q16
27,893 27,475
-1.9%
• Revenue growth in local currency, both in Chile and Peru• Chile achieved a better performance in apparel and online sales• Peru reported negative SSS partially explained by weaker consumption and a high comparison base in
4Q15 (21%).• Adjusted EBITDA declined 1.5%, reflecting start-up costs of Jockey Plaza Peru and Portal La Dehesa Chile
• In Chile, adjusted EBITDA expands driven by continued growth in apparel, partially offset by start-upcosts of Portal La Dehesa
• In Peru, Adjusted EBITDA in local currency declined due to pre-operating expenses of the new store
-1.5%
+7.4%
+14.7%
Mg 8.1% 7.6%
REV
ENU
ESA
DJU
STE
D
EBIT
DA
323,550 339,831
19,864 21,330
Performance Department Stores 4th Quarter
+5.0%
+5.0%
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
10
Chile Argentina Peru Colombia
4Q15
4Q16
4Q15 4Q16
4Q15 4Q16+11.2%
-6.1%
72,290 67,905
67,173
48,197
-15.0%
• In local currency revenues grew in all countries• Adjusted EBITDA declined 31.8%, affected by currency depreciation against CLP and other
particular effects:• Profitability in Chile affected by higher expenses related to the Tax Reform• In Argentina, Adjusted EBITDA impacted by FX, wage increases and higher utility costs• Lower profitability in Peru in local currency due to a high comparison base (reversal of
provisions in 4Q15)• In Colombia, adjusted EBITDA expands 107% in local currency due to land tax refund and higher
gross margin
-28.2%
+3.3%
-23.4%
+2.0% +8.3%
+23.7% +9.3% +11.6%
Mg92.9% 70.0%
REV
ENU
ESA
DJU
STE
D
EBIT
DA
39,44940,753
25,555
19,584
5,125 5,2282,160 2,340
Performance of Shopping Centers 4th Quarter
+3.3%
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
11
Chile Argentina Brazil Peru Colombia
4Q15
4Q16
4Q15 4Q16
46,961
+50.8%
+4.8%
49,215
4Q15 4Q16
17,91322,929
+88.5%
• Local currency revenues grew in Argentina and Peru, due to loan portfolio expansion• Adjusted EBITDA margin up YoY, reflecting improved operating performance in
Argentina• Business profitability declined due to higher risk charges, reflecting the economic
slowdown and higher unemployment• In Peru, risk increased as a result of loan portfolio growth, partially offset by a
higher expense dilution
+28.0%
+80.7% -110.7% +12.6% -49.7%
+11.0%
N.A.
+5.1%
-51.3%
REV
ENU
ESA
DJU
STE
D
EBIT
DA
826 740
29,39032,634
840
-108
14,550 15,290
1,356 660
Mg38.1% 46.6%
Performance of Financial Services 4th Quarter
-10.4%
-10.4%
Proforma growth at constant Exchange Rate as of December 2015.
Figures denominated in CLP MM
12
Performance of Financial Services 4th Quarter
LOAN PORTFOLIO1
PROVISIONS OVER LOANS
6,3%
3,0%3,8%
6,4%7,4%
6,0%
3,3%4,0%
7,7%7,0%
Chile Argentina Brazil Peru Colombia
4Q15
4Q16
676.641
4.877.469
492.146 459.547 679.146
781.461
7.820.670
511.964 531.078 765.216
Chile Argentina Brazil Peru Colombia
4Q15
4Q16
1 Figures denominated in Local Currency MM
13
AGENDA
Highlights
Performance by Business
Balance Sheet Financials
Closing Comments
14
Debt Composition
4Q16
4Q15
DEBT BY CURRENCY(AFTER CCS)
DEBT BY INSTRUMENT DEBT BY RATE(AFTER CCS)
CLP + UF76.0%
Other LATAM6,9%
USD16,6%
Fixed76%
Floating24%
INTERNATIONAL BOND66,9%
LOCAL BOND13,9%
BANKS14,1%
OTHERS5,1%
INTERNATIONAL BOND63,9%
LOCAL BOND19,1%
BANKS12,7%
OTHER4,3%
Fixed67%
Floating33%
CLP + UF64,6%
Other LATAM4,9%
USD30,5%
15
214 230 210
52
638
57
991
34
714
51 40
217
40 15 81
197
350
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
41
20
45
Comfortable Debt Structure
6,3
4,7 4,3 3,2
3,7
2012 2013 2014 2015 2016
4,6
3,4 3,7 3,3 3,2
2012 2013 2014 2015 2016
NET FINANCIAL DEBT EVOLUTION1
(USD BN)NET LEVERAGE
(NFD/ADJUSTED EBITDA)
AMORTIZATION SCHEDULE (USD MN)2,3
1Figures translated to USD with end of period exchange rate. 4Q15 and 4Q16 translated using exchange rate as of December 2016.2These figures exclude overdrafts or Comex debt3These figures exclude MTM of Forwards
AGENDA
Highlights
Performance by Business
Balance Sheet Financials
Closing Comments
17
Continued Focus on Strategic Pillars
for Sustainable Profitable Growth
• Reinforce value proposition, shopping experience and customer loyalty• Continue store remodeling program• Standardization of operational processes• Enhance customer centric focus
• Omnichannel development, innovation and leadership in new trends • Upgrade e-commerce platforms• Implementation of Click&Collect and Drive Through in selected locations• Deepening focus on Health & Wellness, private label, exclusive brands
• Efficiency, productivity and financial discipline• Continued review of underperforming stores• Consolidation of purchase agreements• Further efficiency in logistics• Committed to prudent financial management
• Favorable outlook for 2017 with improved macro backdrops in Peru, Argentina and Brazil while in Chile and Colombia, markets remain healthy
The information contained in this document has been prepared by Cencosud SA ( "Cencosud") for informational purposes only and should
not be construed as a solicitation or an offer to buy or sell securities and should not be treated as giving investment advice or otherwise. No
representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of the information
contained herein. The views expressed in this presentation are subject to change without notice and Cencosud has no obligation to update or
keep current the information contained herein. The information contained in this document is not intended to be complete and is qualified in
its entirety by reference to more detailed information in the preliminary offering memorandum. Cencosud and their respective affiliates,
officers, directors, partners and employees accept liability for any loss or damage of any kind arising from the use of all or part of this
material.
This presentation may contain statements that are subject to risks and uncertainties and factors, which are based on current expectations
and projections about future events and trends that may affect the business of Cencosud. You are cautioned that such forward-looking
statements are not guarantees of future performance. There are several factors that can adversely affect the estimates and assumptions on
which these forward-looking statements are based, many of which are beyond our control.
Upcoming Events
11th Larrain Vial Andean ConferenceMarch 7th & 8th
Santiago, Chile
5th Itaú BBA Latam Consumer EventMarch 13th & 14th
London, UK
25th Citi Annual Latin American ConferenceMarch 15th & 16th
New York, USA
ContactsMarisol FernándezIRO
Phone: +562 2959 [email protected]
Natalia NacifIR Senior Analyst
Phone: +562 2959 [email protected]
Valentina KleinIR Analyst
Phone: +562 2200 [email protected]