la comer s.a.b. de · supermarket with a variety of special products by region (kosher, organic)....
TRANSCRIPT
L A COMER S.A.B. DE C.V.
March, 2016
Disclaimer
“The following material is submitted by way of general information regarding La Comer, S.A.B. de C.V., “La Comer”, 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 La Comer cannot ensure that said declarations will prove to be correct. These risks and
uncertainties include factors related to the Mexican economy, 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 La Comer is a part and in which it operates. For additional information regarding factors
that may cause La Comer’s real results to differ from the expectations herein presented, please refer to La Comer reports on file
at the Mexican Stock Exchange (Bolsa Mexicana de Valores).
This presentation does not constitute a recommendation, invitation, and request or offer to tender or purchase securities:
neither this presentation nor anything herein comprised shall be considered grounds for a contract or any similar commitment.”
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Mission
Food retail company that best serves medium and high socioeconomic
level in the country, offering the best shopping experience in the market
based on quality, customer support and service.
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Corporate Structure
Major Shareholders57.27% *
Free Float42.73%*
*As of January 2016
Listed on the Mexican
Stock Exchange
43% float
Hipertiendas
Metropolitanas *
Comercial City Fresko
Personnell Services
* 3 Real Estate
La Comer Summary
� 54 stores (246,224 m2)
� 70% of the stores located in Mexico City metropolitan area
� Real Estate:
• 46 units (31 stores +15 additional assets)
• 364 commercial spaces(+85,000 m2 leasing area); Net income of $129 million pesos, 10%
EBITDA
• 6 City Market
• 10 Fresko
• 12 Sumesa
• 26 La Comer After conversion program
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EBITDA
� Approximately 8,000 employees.
� Brands and logos: Comercial Mexicana, La Comer, City Market, Fresko, Sumesa, Golden Hills,
Farmacom, Pet’s Club, “Monedero Naranja” and Pelican logo
� Licences: Comercial Mexicana brand and pelican logo are granted for two years
� Marketing Campaigns: “Miércoles de plaza”, “¿Vas al Super o a La Comer?”, Carnisalchichonería
� Distribution Center: Mexico City, Vallejo (24,000 m2); capacity: 80 to 100 stores
Strategy
• Differentiation: La Comer is a different option,
– Remodel our stores to our distinctive formats
– Comfort and convenience shopping
– Turn our stores into a "one stop shop“
– Competitive fair prices
• Value proposition: La Comer will offer,
– Quality of goods
– Quality and unmatched reputation of freshness and superiority of our perishable food division
– Focus in organic and healthy natural food
– Variety of products and brands
– Personalized and expert attention for our clients
– Total supply availability
– New and innovative products
• Focused on medium and high socioeconomic levels:
– Underserved segment
– We do better
– Resilient to crisis
– Potential profitability
Formats
La Comer´s formats will show common and consistent elements,
to reinforce image and create a shopping experience.
� Wide range of gourmet products as wines, cheeses, meat, imported groceries, and organic products.
� Exclusive product agreements with international brands. � Sophisticated atmosphere and high quality service.� Prepared foods for consumption in and out of the store � Specialized departments of prepared foods as tapas, seafood, pizza, chocolate, ice
cream, coffee and cakes, � 6 stores
Concept
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� 6 stores� Sales area of approximately 3,000 sq. mts.� Located in high income areas
� Supermarket with a variety of special products by region (kosher, organic). � Excellent quality of perishables, emphasizing freshness.� It is designed especially for an agile and quickly purchase, providing customers
also with quality products.� 10 stores� Sales area of about 1,500 to 4,000 square meters. � It will be located in areas where it can take advantage of vertical growth (buildings)
Concept
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� It will be located in areas where it can take advantage of vertical growth (buildings) of large cities.
� In addition to perishable and grocery products, this format will offer general merchandise and household appliances as tableware, plastic, among others.
� La Comer will offer greater range and variety of products .� Special departments of prepared food, fine pastry and coffee shop. � Can be found alone or together with shopping centers.� Sales area of 4,000 to 7,500 square meters
Concept
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La Comer Selected Financial Data
Dec-13* % Dec-14* % Dec-15** %
Net sales 12,071 100.0 13,078 100.0 14,041 100.0
Cost of sales 9,078 75.2 9,781 74.8 10,531 75.0
Gross profit 2,993 24.8 3,297 25.2 3,509 25.0
Sales expenses 1,969 16.3 2,166 16.6 2,330 16.6
Operating income 981 8.1 1,077 8.2 1,174 8.4
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*Million pesos. Proforma Financial information, La Comer Prospectus, BMV
**Millions pesos. Preliminar internal proforma financial information
Operating income 981 8.1 1,077 8.2 1,174 8.4
EBITDA 1,228 10.2 1,378 10.5 1,465 10.4
Inventories 1,369 1,639 1,454
Trade payables 1,626 1,678 836
2016: Transition year
2016 sales will be affected by the following factors:
1) Absence of the annual “Julio Regalado” campaign
2) Temporary and/or partial closures for store remodeling program (will represent a
significant increase in sales on following years)
3) Store cuts in some exceeded size stores, to be dedicated to commercial spaces
4) Getting out of the sale of clothes
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Margins will be affected by a smaller scale operation
1) Direct costs of merchandise
2) Lower logistical efficiencies
3) Lower operating leverage over certain fixed expenses
4) Pre-operating costs of new and remodeled stores
La Comer Financial Statement
Balance SheetMillion pesos as of December 2015
Assets Liabilities and Stockholders' Equity
Cash and temporary investments 3,077 Trade payables 836
Clients 85 Provisions 169
Other accounts and notes receivable 28 Other liabilities 1,374
Inventories 1,454 Taxes payable 188
Related parties 118 Total current liabilities 2,567
Creditable taxes 761
Advance payments 164 Defered Income taxes 43
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Advance payments 164 Defered Income taxes 43
Total current assets 5,687 Employee benefits 66
Non-current Assets Total Liabilities 2,676
Intangible assets 7,350
Other non-current assets 1,049 Capital Stock 19,782
Deferred asset tax 58 Legal reserve 11
Investments Properties 16 Accrued net income 797
Property, plant and equipment (Net) 9,107 Total Stock Holders' Equity: 20,590
Total Asset 23,267 Total Liabilities and Stockholders' Equity 23,267
Note: Preliminary internal pro-forma financial information
CAPEX
Concept # units Million pesos
New stores 6 1,037
Conversion & remodeling 12 1,107
2016 Investment Program
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New image to La Comer 74
Maintenance 135
Real estate business 3 117
Distribution Center 30
Total $ 2,500
Store Openings
2016E 2017E 2018E 2019E 2020E 2021E 2022E
Openings 6 7 8 9 10 11 12
City Market 3 1 6 2 3 3 3
La Comer, will initiate an aggressive plan to open new stores
giving priority to the formats Fresko and City Market to increase
sales participation of these formats.
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City Market 3 1 6 2 3 3 3
Fresko 3 4 1 5 6 7 8
La Comer - 2 1 2 1 1 1
Total units at end of
period 60 67 75 84 94 105 117
La
Comer
71%
City
Market
13%
Fresko
8%Sumesa
8%La
Comer
40%
City
Market
30%
Fresko
30%
0%
