BBVA Latin America Conference
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
BBVA
Latin America Conference
May 2019
DI SCLAIMER GENERAL 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 is presented in a summarized fashion and is not intended to be comprehensive. Nor does it constitute a recommendation for potential investors. This presentation is strictly 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 be emphasized. 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 that said declarations will prove to be correct. These risks and uncertainties include factors related to all the economies where we operate, which in turn may show volatility 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 to the 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 an alternative 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. Decisions based on information contained herein are the sole responsibility of the person viewing it. In exchange for utilizing the information you agree to indemnify and hold Mabe, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not 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 the application 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.
LEADING PLAYER I N THE HOME A PPLIANCES I NDUSTRY
I N THE AMERICAS WI TH A S TRATEGIC PA R TNER
Well Diversified +2.4 mm Units Sold in 1Q19
Revenue Profile Refrigerators
Laundry
Others
Ranges
(21%) (38%) (31%) (10%)
Joint Venture +18,000 Employees
Since 1987
Home Appliances Leader [3]
1Q19 LTM
Revenue Breakdown
Others
US Exports (48%) 32%
26% US$3.1Bn Revenues
Mexico (23%)
South America (11%) [1]
16%
US$280MM EBITDAR
Canada (10%) 8%
Competitor Competitor
Central America (6%) [2] 9% 10%
Other Exports (3%)
4
Competitor Competitor
1
8.9% EBITDAR Margin
3 2
____________________
(1) South America includes: Argentina, Colombia, Peru, Chile, and Ecuador
(2) Central America includes: Guatemala, Honduras, Nicaragua, Costa Rica, Panama, Dominican Republic and El Salvador
(3) Weighted average market share of units sold in all countries in which Mabe has a presence as of 2017LEV ERAGING O UR J V WI TH GE A PPLIANCES & HA IER
F OR 3 0 + YEARS
Pursuant to the JV agreement, GE Appliances, a Haier company (48% Mabe
ownership), is Mabe’s largest customer and sole distributor of products in the US
General Mabe is the exclusive distributor of GE Appliances and Haier brands in Canada,
Terms Mexico, and the rest of Latin America
GE Appliances, Haier, and Mabe have a strong interaction among their R&D
centers
Mabe is the largest product supplier for GE Appliances in the US market
Export
Long term manufacturing contracts with fixed margins (cost-plus)
Agreements
Mabe designs and develops many GE Appliances products sold in the US
Haier licenses GE Appliances trademarks & patents to Mabe and provides access
to relevant manufacturing technology
Mabe has a preferred raw material sourcing arrangement with Haier’s suppliers
Synergistic
Integrated decision-making process that operates in synchrony between Mabe
Relationship
and GE Appliances, a Haier company
Additionally, Mabe’s leading R&D facilities operate in conjunction with Haiers’ in
the U.S., Germany, China, South Korea, Japan, and New ZealandMA RKET LEA DERSHIP A CROSS THE A MERICAS WI TH
S TRONG B RAND RECOGNITION
Ultra 1.3%
Premium
Premium 6.4%
Brand
Segmentation
Mass
76.9%
Market
Local 15.4%
Strong product portfolio in all core product categories
Differentiated brands for different customer segments
Constant segment strategy optimization to better serve customers
#1 #3 #3 #1 #1
Market Share
Central Andean
America1 Region2
____________________
(1) Central America includes: Guatemala, Honduras, Nicaragua, Costa Rica, Panama, Dominican Republic and El Salvador
(2) Andean includes: Colombia, Peru, Chile, and EcuadorPRODUCT O FFERING A ND CU STOMER B ASE
Refrigerators Ranges Laundry Others
Top / Bottom Mount Free Standing Laundry Center Dishwasher
Side by Side HP(2) A/C
Key Products Top Load Washer &
Dryer
Range Hoods
Bottom Freezer Built-In
Targets End-Consumers Through Multiple Channels(1) Well-Balanced Customer Base
Retail Outlets Segmentation (% of Revenues) (% of 2018 Revenues)
High End: 4%
Other Channels: 4%
Regional Chains: 26% 39% 41%
+1,200
Clients Joint Venture
Fixed Margin
National Chains: 66% Long-Term
Contracts
20%
Top 20
Dec
Dec
Dec
Apr
Apr
Apr
Aug
Aug
Aug
(Mexico)
2016 2017 2018
(1) Mexico only.EX TENSIVE DI STRIBUTION NETWORK B ASED O N K EY
PA R TNERSHIPS
Strategic Partnerships
Canada
Mexico
Central
America
South
America
Over 4,000 customers, between large retailers and mom-and-pop stores
Strong relationship with leading distributors throughout the region support Mabe’s position as the
market leader
Mabe’s products are sold through a diversified base of retail channels to reach all customer
segments
We also sell in: Egypt, The Philippines, Saudi Arabia, United Arab Emirates and across the
CaribbeanS TATE O F THE AR T MANUFACTURING FACILITIES
Manufacturing Plants
Celaya (2000) Querétaro (1982) Saltillo (1996) San Luis Potosí (1989/1994)
Capacity: 2.8MM
Capacity: 2MM Capacity: 60,100 Capacity: 3.7MM
Utilization:
Utilization: 86% Utilization: 85% 74% / 94% / 94% / 95% Utilization: 98%
Key Products: Key Products: Key Products:
Refrigerators Components and Washers / Dryers / Key Products:
parts Laundry Centers / Gas / Electric
Components Ranges / Ovens
Guayaquil (1995) Manizales (1996) San Luis (2007)
Capacity: 3.2MM
Capacity: 400K Capacity: 1MM Capacity: 330K Utilization: 88%
Utilization: 40% Utilization: 60% Utilization: 38%
Key Products: Key Products:
Key Products: Key Products:
Gas and Compressors
Refrigerators Refrigerators
Electric Ranges
139
Capital104
Expenditures106
(US$MM) Outstanding Characteristics
139
100
Expansion Hard-to-replicate manufacturing footprint provides efficiencies
60 58 of scale and acts as a barrier to entry in key markets
Maintenance
104 106
CapEx for automation is being invested on a yearly basis
32 29
100 48
44 Our most relevant supplier represents no more than 8% of our
60
39 58 24 21
8 8 raw material purchases
2016 2017 2018 1Q18 1Q19
32 Facilities operate under a “Lean Enterprise Principle” of
29 continuous improvement and incorporation of new market
44 39 48 24 trends & technologies
21
8 8
2016 2017 2018 1Q18 1Q19TOTAL SALES 1Q19
T O TA L S A L E S 1 Q 1 9 B Y R E G I O N T O TA L S A L E S 1 Q 1 9 B Y S E G M E NT
3% 12%
7% % Δ in USD
17%
34%
28%
58%
22%
31%
North America Mexico Cooking Refrigeration
Latin America International Laundry Others
NORTH LATIN
SEGMENT MEXICO INTERNATIONAL
AMERICA AMERICA
TOTAL SALES 1Q19 BY C o o k i n g 37% 31% 26% 38%
Refrigeration 28% 26% 47% 31%
REGION & SEGMENT
Laundry 32% 28% 16% 17%
Others 3% 15% 11% 14%
Total Sales Change vs 1Q18 29% (2%) (13%) 9%
Figures in US$MM, unless otherwise notedRESULTS OVERVIEW
CONCEPT 1Q19 1Q18 D VS 2018
Sales 701 627 12%
EBITDA 53 32 66%
EBITDA Margin 7.6% 5.1% 251 bp
EBITDAR 54 37 47%
EBITDAR Margin 7.7% 5.9% 186 bp
CapEx 29 32 (8%)
Net Debt 712 858 (17%)
Net Leverage 2.74x 3.86x (1.12x)
Net Interest Coverage 4.39x 2.85x 1.54x
Figures in US$MM, unless otherwise notedDEBT PROFILE
DEBT M AT U R I T I E S
45
1Q Gross
858
18 Debt: 903 Average life of debt: 6.7
years
1Q 6
Gross
712 120
19 Debt: 832 370
68
Net Debt
175
131
8 8 8
8 2
During March we successfully 18 18 18
refinanced our CAD-denominated 2019 2020 2021 2022 2023 2024 2026 2028
loan. We lowered the interest rate Notes 2028 Notes 2019
to a fixed 4.17%.
Figures in US$MM, unless otherwise notedFINAL R EMARKS
Strong US demand for GE We expect South America We are analyzing
Appliances products. to deliver mixed results; alternatives to refinance
Mexico will start to pick up the US$131MM that will
During 2Q19 we will be by 2Q19. mature by the end of the
launching the GE Café year.
brand in Canada.You can also read
