presentación de powerpoints2.q4cdn.com/740885614/files/doc_presentations_es/2021/...1 for...
TRANSCRIPT
CENCOSUDCORPORATE PRESENTATION
Fourth Quarter 2020
Well Established Leading Retailer in South America
+50 years of history
+117K employees 1,064 Retail stores3.34 MM SQm selling space
67 shopping centers 831 M SQm GLA to third
parties in Shopping Centers
2
About Cencosud
CENCOSUD (2004)US$ 5.1 BN Market Cap at December 31FREE FLOAT: 46.8%
• Average trading volume 4Q20: US$ 11.9 million• Average trading volume total year: US$ 8.4 million
CENCOSUD SHOPPING (2019 IPO)FREE FLOAT: 27.7%
• Average trading volume 4Q20: US$ 1.3 million• Average trading volumen total year: US$ 2.7 million
SHOPPING CENTERS
SUPERMARKETSHOME
IMPROVEMENTDEPARTMENT
STORESFINANCIAL SERVICES
+6.2 million Square Meters of landbank fuel future grouth across
the region
Supermarkets Cencosud’s DNA
3
Cencosud’s History
Opens 1st
SM in Chile
Opens Alto Las Condes Shopping Center & 1st Easy store in Chile
Opens Alto Las Condes Shopping Center & 1st Easy
store in Chile
Acquires 4 SM chains in the region and 2 DS chains. JV in Colombia for
Easy development
Launches FS in Chile. Open 2 Shopping Centers in Chile.
Acquires SM Santa Isabel in ChileStarts FS operations in Argentina. Acquires HI
in Arg
Acquires 2 chains of SM in Brazil
JV of FS in Chile
1963
1970
1993
2002 2003
2004
2005
2007
2008 2010
2012
2014
2018 2019
Opens Mall Unicenter in Arg
Open Jumbo Store in Arg
1982
1988
Opens Jumbo Kennedy in Chile
Acquires DS (Paris)
Acquires SM chain in Brazil. Open Costanera Center Shopping Center.
Buy SM in Colombia
JV of FS in Peru
Acquires 2 chains of HI in Chile and Argentina
2020
IPO of Cencosud Shopping
Closes Paris in Peru.Paris absorbs Johnson Chile.
Cornershop strategic Alliance.
4
2020 Highlights
Rating Modifications
Fitch Ratings and Moody’saffirmed Cencosud's rating withBBB- and Baa3 respectively,changing the outlook to stable.
Tender Offer
March: the Company completedthe tender offer for all the bondsmaturing in the years 2021 and2023.
Ordinary Shareholder´sMeeting
April: 1) Two new Board Memberswere elected and 2) A dividend ofCLP 32 per share was approved tobe distributed for the 2019 period.
Department Stores Closing
June: reorganization of DS businessin Peru, through the closure of 11Paris stores. In Chile, reorganizationthrough the takeover into ParisExpress or closure of stores underthe Johnson brand.
E-commerce Achievements
August: Cencosud and Cornershop signed along term agreement for the Supermarketand Home Improvement operations. As ofDecember, Paris joined them.
November: launch of Jumbo Prime, amembership program that seeks toimprove the shopping experience onJumbo.cl
January 2021: Launch of the newconvenience format of Supermarkets,Spid35, which includes a delivery service ofless than 35 minutes.
Jumbo, 1st with Blue Seal
January 2021: Jumbo became the first -and only-supermarket in Chile to certify that all seafood productspromote legal fishing and sustainable extraction.
Easy receives “Giro Limpio” Seal
Enero 2021: Easy received the “Giro Limpio” certificate since 50%of the load is moved in certified trucks, reducing energyconsumption and greenhouse gas emissions.
3,711,107Tenant Sales Shopping Center
10,053,006Sales Income
33,505Financial Income
3,923Income from participation in
other companies
-8,763,414Suppliers Payment
-1,182,066Salaries and benefits to our team
-301,647Creditors Payment
-91,360Dividends Payment
Distribution of value in Cencosud(CLP million)
HIGHLIGHTS THAT MARKED THE
YEAR
DISTRIBUTED ECONOMIC VALUEGENERATED ECONOMIC VALUE
5
6
Why Invest in Cencosud?
Established presence in largest economies of the region
Organic growth opportunities in fast developing countries
supported by own landbank
Further development of theomnichannel strategy
Focus on productivity & efficiency initiatives
Strong Corporate Governance
Healthy balance sheet supports growth opportunities
MAIN CORE ETHICS & SUSTAINABLE VALUES
7
Well Diversified Operations – Contribution By Country1
50%
18%
13%
11%
8%
60%16%
9%
10%
5%
Adjusted EBITDA LTM Dec 2020US$1,302 million
Adjusted Margin EBITDA : 10.2%2
Revenues LTM Dec 2020US$12,736 million
247SUPERMARKETS
37HOME IMPROVEMENT
79DEPARTMENT STORES
35SHOPPING CENTERS
F.S: JV WITH SCOTIABANK
283SUPERMARKETS
51HOME IMPROVEMENT
22SHOPPING CENTERS
FINANCIAL SERVICES
202SUPERMARKETS
F.S JV WITH BRADESCO
93SUPERMARKETS
6SHOPPING CENTERS
F.S: JV WITH SCOTIABANK
94SUPERMARKETS
10HOME IMPROVEMENT
4SHOPPING CENTERS
F.S: JV WITH SCOTIABANK
1 For calculation details please go to page 13 2 Does not include One Off of the period
70%
5%
19%
0%6%
8
Financial Contribution By Business Units1
75%
1%
13%
10%1%
US$ 9,598 million
US$ 136 million
US$ 1,643 million
US$ 1,218 million US$ 137 million
Adjusted EBITDA LTM Dec 2020US$1,343 million
Adjusted Margin EBITDA : 10.5%2
Revenues LTM Dec 2020US$12,732 million
US$ 944 million9.8% mg
US$ 63 million46.2% mg
US$ 254 million15.4% mg
US$ -1 million0% mg
US$ 84 million61% mg
PORTFOLIO OF LEADING BRANDS1 For calculation details please go to page 13 2 Does not include One Off of the period
9
Healthy Financial Structure
CLP + UF
97%
USD3%
● Mar’20: Completed the repurchase of 2021 and 2023 bonds under the“Make-Whole Redemption” option for a total of US$ 881 million;
● Investment Grade since 2011:
● Fitch Ratings: BBB- (stable);● Moody’s: Baa3 (stable).
● Average amortization next 4 years of US$ 44 million;
● Cash as of December 31st of US$ 1,856 million, cash (US$ 959 million).
Relevant News Debt by Currency (after CCS)
Dec20 Dec19
Gross leverage and financial evolution1 Debt amortization schedule (US$ MM)
1 Does not include One Off of the period
67 55 20 36
576
53
1,017
226
451
15
614 595
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2041 2045
CLP + UF
100%
USD0%
5.7 5.9 6.0 6.1 6.3
5.0
5.1 5.0 5.05.5
5.1
3.4
20
15
20
16
20
17
20
18
20
19
20
20
GrossFinancialDebt
GFD/AdjustedEBITDA
Long-term agreement with Cornershop for Supermarket, HomeImprovement and Department Stores in Chile, Peru, Colombia and Brazil,which allows customers to buy in our stores without a service fee. Inaddition, it includes investment in exclusive stores for e-commerce picking(Dark Stores), with the aim of continuing to provide the best service inphysical stores and digital platforms.
10
Omnichannel StrategyC
OM
PAN
Y’S
STR
ATEG
Y Shopping Service
CustomerExperience
Profitability
• Marketplace launch;• Improve unique product´s offer;• Develop hyper personalization tools;• Secure a money-back guarantee;• Take advantage of the economics of scale;• Invest in technological developments;• Deepen the ability to generate, handle and
process data.
E-commerce Penetration1
Cornershop Alliance
1 Incluye Cornershop. No incluye Brasil ni Santa Isabel Chile.
Jumbo PrimeLaunch of Jumbo Prime, a membership program that seeks to improve theshopping experience at Jumbo, through free delivery for purchases over$CLP 30,000, personalized offers, exclusive service channel and doubleaccumulation of Cencosud Points.
Spid35
On January 2021 Cencosud announced the launch of the newconvenience supermarket format, with the Spid35 brand, whichoffers a delivery service in less than 35 minutes with an assortmentof 1600 SKUs, to a target audience between 18 and 30 years. Thisformat started as a pilot plan from the Cornershop app. Its own Apphas already been launched in Chile and at the end of the firstsemester it will be launched throughout the region.
Fast delivery
Paris launched its 24-hour delivery of more than 30,000 products forthe Santiago Metropolitan Area with focus on providing the bestcustomer experience and greater logistics development.In the same way, Easy Chile has delivery service in 24 hours in SMA.
Business Supermarket Department StoreHome
Improvement
4T20 11.0% 35.5% 8.2%
4T19 1.9% 21.8% 5.6%
Var 20/19 (bps) 915.3 1,364.3 261.8
2020 7.8% 49.1% 8.9%
2019 1.8% 17.9% 4.5%
Var 20/19 (bps) 601.8 3,113.7 447.61 Includes Cornershop. Does not include Brazil or Santa Isabel Chile
11
Productividad y Eficiencia
Created a regional purchasing team with the purpose of having:
• Greater availability of products out of season; and
• Cost savings of 16% with a reduction of US$11 million per month (38% of the savings is permanent).
Cencosud is a pioneer in Latam for creating centralized teams for the development and purchase of own brand products,Private Label penetration in 2020 is:
• 33,0% DS / 9,2% Supermarket / 21,7% Home Improvement
The Big Data Analytics department is developing several projects:
• Initiatives that improve the customer experience based on personalized recommendations;• Price Optimization Projects for inventory management and promoting commercial divisions; and• Operational Efficiency Projects based on advanced analytics algorithms.
Shared Services Center
Regional Procurement &
Private Label Regional Team
Big Data Analytics
GLA optimization with new openings in landbanks and efficiencies on existing GLA:• Format change in Supermarket to Cash & Carry (Peru) and to Atacarejo (Brazil);• Optimization of Metro Hypermarkets GLA by adding Home Improvement Stores (Colombia) and Spid35 stores opening..
GLA Optimization
Offer services to the other units, reaching functional specialization in high volume transactions:• Evolving towards Global Business Services with the digital transformation engine reflected in over 180 installed robots;• a Transformational vision of processes seeking efficiency, regional consistency, and generating operational and
transactional synergy in activities increasingly closer to the business;• Results: recovered US$6.6 million from accumulated commercial agreements and saved US$13 million from operational
improvements in inventory management; and• Reduced operating costs by US$7.6 million over the past 4 years.
12
Our Ethics and Values
Code of Ethics revised annually Board of Directors and Employees trained in issues
related to ethics. More than 120,000 people trainedin ethics and sustainability issues
Code of Ethics and Conduct signed by all employees Independent hotline for reporting behavior
Relationshipwith clients
Relationshipwith suppliers
Relationship withemployees
Infomation Care Asset Protection
Pillars of our sustainable strategyKey dimensions of our code of ethics
Corporate Governance
People
Product
Planet
Aspects of corporate governance, compliance, ethical management, risk management and information security
Aspects associated with product offering and supply chain
Environmental aspects of our facilities
Social aspects associated with our employees, clients and communities in which our facilities are located
Corporate Governance
Horst Paulmann
Heike Paulmann Peter Paulmann
Felipe Larrain Julio Moura
Mario Valcarce Jorge Pérez Alati
Alejandro Pérez Stefan Krause
Independent Members
Chief Executive OfficerMatías Videla
Brazil ManagerSebastian Los
Peru ManagerAlfredo Mastrokalos
Colombia ManagerMarta Henao
SM ChileCristian Siegmund
Dept. Store ChileRicardo Bennett
Home Imp. ChileFelipe Longo
Argentina ManagerDiego Marcantonio
Board of Directors Corporate Structure – by Country
New organizational structure with the purpose of :Generating synergies between business units; Streamline
decision making; Benefit from local knowledge
Directors Committee• Felipe Larrain• Mario Valcarce• Alejandro Perez
14
Anexo de Cálculos
For this presentation the following exchange rates, calculations and details were considered:
• Market cap calculated as of December 31st, 2020 using CLP 1,265 share closing price and CLP 734.7 closing exchange rate per US$;
• The average volume traded: figures as of December 2020 using the share closing price and the average exchange rate of CLP 761.96 per US$;
• Adjusted EBITDA represents EBITDA plus exchange differences and results by adjustment units, less the revaluation of assets, also does notinclude One Off of the period;
• Revenues and Adjusted EBITDA converted to US$ at average quarterly exchange rate of CLP 802.80, CLP 822.97, CLP 780.93 and CLP 761.96per US$ for each quarter, respectively;
• Revenues and Adjusted EBITDA includes IFRS16;
• Revenues and Adjusted EBITDA graph by country excludes the “others segment”, which contributed US$4 million in revenues and a loss ofUS$40.5 million in Adjusted EBITDA;
• Revenues and Adjusted EBITDA exclude the adjustment for hyperinflation in Argentina (IAS29). Including the effect, revenues for LTMDecember 2020 reached US$12,462 million and Adjusted EBITDA US$1,234 million using quarterly average exchange rate of CLP 802.80, CLP822.97, CLP 780.93 and CLP 761.96 for US$ for each quarter, respectively. Argentina represents 15.7% of total revenues and 11.6% of totalAdjusted EBITDA;
• Debt denominated in dollars, calculated at the closing exchange rate as of December 31st, 2020. Debt includes lease liabilities by adoption ofIFRS16. Additionally, it includes the effect of hyperinflation in Argentina as per the IAS29. The amortization schedule is presented net of gains /losses obtained by Comex derivatives, overdrafts and debt (excludes futures) and One Off of the period;
• Net debt presented after cross currency swaps; and
• SM stands for Supermarket, FS Financial Services, HI Home Improvement and DS Department Stores, and Arg stands for Argentina.