controladora mabe 2q19 earnings
TRANSCRIPT
Cuando tu hogar funciona, todo funciona.
CONTROLADORA MABE
2Q19 EARNINGS
PRESENTATION
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. IFRS became effective January 1st, 2019, this new standard affects the way leasing assets and liabilities are reported in the Balance Sheet. 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.
DISCLAIMER
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HIGHLIGHTS2Q19 sales rose 5% compared to 2Q18.
Strong sales performance in the US,
followed by Mexico and Canada.
EBITDA fell 16% due to sales mix, FX
impact in Canada and South America,
and a weaker-than-expected Mother’s
Day season in the Latin America and
Mexico regions
We signed a commitment for a
US$150MM bank loan with a competitive
rate.
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32%
34%
26%
8%
Cooking RefrigerationLaundry Others
T O T A L S A L E S 2 Q 1 9 B Y S E G M E N T
TOTAL SALES 2Q19T O T A L S A L E S 2 Q 1 9 B Y R E G I O N
54%
27%
17%
2%
North America Mexico
Latin America International
NORTH AMERICA MEXICO LATIN AMERICA INTERNATIONAL TOTAL
Sales Change vs 2Q18 12% 7% (9%) (25%) 5%SALES BY SEGMENT NORTH AMERICA MEXICO LATIN AMERICA INTERNATIONAL TOTAL
C o o k i n g 35% 27% 25% 42% 32%R e f r i g e r a t i o n 30% 34% 47% 28% 34%L a u n d r y 31% 24% 18% 17% 26%O t h e r s 4% 16% 10% 13% 8%
Figures in US$MM, unless otherwise noted 4
SALES AND VOLUME
2,744 2,959 3,069
801 844
FY16 FY17 FY18 2Q18 2Q19
S A L E S
5%
10,890 11,419 11,176
2,945 2,905
FY16 FY17 FY18 2Q18 2Q19
V O L U M E ( I N U N I T S )
(1%)
5 Figures in US$MM, unless otherwise noted
282
240258
8067
10.3%
8.1% 8.4%
10.0%
7.9%
FY16 FY17 FY18 2Q18 2Q19EBITDA EBITDA Margin
EBITDA
6 Figures in US$MM, unless otherwise noted
For purposes of this slide, EBITDA does not consider IFRS 16, which affects the way leasing assets and liabilities are reported in the Balance Sheet.
(16%)
RESULTSOVERVIEW C O N C E P T 2 Q 1 9 2 Q 1 8 D V S 2 0 1 8
S a l e s 844 801 5%
E B I T D A R 73 85 (14%)
E B I T D A R M a r g i n 9% 10%
C a p E x 22 26 (14%)
N e t D e b t 686 722 (5%)
N e t L e v e r a g e 2.6x 3.1x
N e t I n t e r e s tC o v e r a g e 4.6x 2.9x
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Figures in US$MM, unless otherwise noted
IFRS 16
8 Figures in US$MM, unless otherwise noted.
Income Statement w/o IFRS IFRS 16 Changes
w IFRS2Q19 2Q19 Proforma
Sales 844.2 - 844.2 COGS 682.4 5.4 687.8 SG&A 125.6 (5.7) 119.8 D&A 29.4 5.4 34.8 Operating profit 36.2 36.5EBITDA 67.5 73.2 Financing cost 12.1 1.1 13.2 Net profit 14.8 (0.7) 14.0
Balance Sheet
LT Asset Leases - 86.1 86.1Total Assets 2,473.1 2,559.3ST Liability Leases - 8.6 8.6Current Liabilities 1,251.7 1,260.3LT Liability Leases - 78.2 78.2Total Liabilities 1,935.5 2,022.4
Covenants Calculations
Net Debt + Leases 685.9 86.8 772.7 Interests LTM 57.6 2.0 59.6EBITDA LTM 262.3 11.0 273.3 Net debt / EBITDA 2.61x 2.83x EBITDA / Interests 4.56x 4.59x
9 Figures in US$MM, unless otherwise noted.
2Q19 FREE CASH FLOW
370
131 175
11 11 11 11 11
17 4
8 8 8 8 2
2019 2020 2021 2022 2023 2024 2026 2028Notes 2028 Notes 2019 Private Placement
Club Deal ST Debt CAD Loan
DEBT PROFILE
10 Figures in US$MM, unless otherwise noted.
During June we signed a commitment for aUS$150MM bank loan and we made a US$54MMdrawdown from it to fully prepay our MXN loan.
Loan pays a quarterly interest of L+1.40% and willbegin to amortize in January 2020 and mature in2024.
Average life of debt: 6.1 years
686
722
95
134
2Q19
2Q18
Net Debt Cash
D E B T
Gross Debt: 856
Gross Debt: 786
FINAL REMARKS
Strong US demand for GE Appliances products.
We expect Mexico and Argentina to end the year in line with our forecasts.
South America is likely to deliver mixed results for remainder of 2019.
Notes maturing in 2019 will be partially refinanced with a Club Deal loan, for which we have already signed a commitment
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D A N I E L A G A R Z ACorporate Finance Manager Phone: +52 55 9178 8100 ext. 3757E-mail: [email protected]
L A U R A A LV I Z OTreasury & Investors Relations Jr. ManagerPhone: +52 55 9178 8268E-mail: [email protected]
Av. Paseo de las Palmas 100, Lomas - Virreyes, Lomas de Chapultepec, 11000 Ciudad de México, CDMX
CONTACT
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