2Q17 Earnings Presentation
2Q17 Earnings Presentation
Agenda
2
Recent Developments……...…………….....………….3
1
Operational Strategies……....………………...……5
2
3
2Q17 6 7 8
Consolidated Results – Net Sales...………..…...7
4
Famsa Mexico……..……………………….…….. 9
5
Famsa USA..………………………..................... 11
Banco Famsa.…………………….….…………....... 13
Consolidated Results……………................................16
Financial Position Items….....…...........................................18
Recent Developments
4
1. Recent Developments
Credit facility subscribed by MXP$2,634 million with BANCOMEXT. A credit facility was subscribed at an interest rate of TIIE + 300 bps. for a 10-year term The resources obtained from this credit facility will be used to settle a US$110 million advance payment of our Senior Notes @ 2020, and to amortize approximately MXP$700 million of short-term bank debt. As a result of this transaction, the Company will decrease its outstanding Dollar-denominated debt balance by 43%, thus substantially reducing its exposure to the FX MXP-USD fluctuation
Operational Strategies
2. Strategies 2017: Initiatives
6
I. Asset Monetization
Grupo Famsa expect to conclude the sales process of 17 properties during 2H17, with an approximate combined value of Ps.1,100 million. Use of resources: amortization of short-term maturities.
II. Commercial Network
III. Risk Management
• Optimization of our commercial network, closing 1 store and 6 banking branches in Mexico, as well as 2 stores in the U.S. during the second quarter 2017 Expected closures: MX: 3 stores, 4 banking branches, 10 pawnshop branches. USA: 3 stores
• The participation of clients from the formal economy in 2Q17 was 66% vs 61% in 2Q16 • NPL (Includes credits discounted by payroll): 8.3%
IV. Corporate Governance
• We reinforced our structure and processes with the appointment of a new Internal Audit VP
Consolidated Results – Net Sales
3. Consolidated Results – Net Sales
8
Net Sales by product mix
Net Sales by country (Millions of MXP)
-1.0% 4,311 592
8,151
8,247
1,154
933
446
3,719
3,823
2Q16
2Q17
YTD 16
YTD 17
13.3%
Famsa USA
15.4%
Famsa MX
27.8%
34.5%
2Q16
2Q17
14.0% 3.0% 5.5% 11.6% 10.2%
2Q16
2Q17
Total
+5.1%
(0.3%)
Famsa Mexico
+6.9%
+2.6%
(6.8%)
(25.5%)
* Excluding exchange rate effect * Mexican Pesos
919 398 28
26
379 2Q16
390 26 24 377 2Q17
Computers Motorcycles Electronics Mobile Phones Appliances
13.8% 33.2%
24.7%
Forniture Loans
Retail-area -2.1%
861 44
13.5%
16.1%
-6.5%
88
12.2% 5.9% 2.5% 9.3% 9.6%
12.8%
Business-units
Same Store Sales (SSS)
USA*
13.7%
12.8%
7,314
Others
11.9% 5.7% 2.1% 9.1% 9.7%
14.9% 5.4% 2.7% 10.6% 10.4%
4,268 6,997
Famsa
(Millions of MXP)
+1.2%
6
568 40 4
66
451
2Q16-m2*
556 3 38 4
64
447
2Q17-m2*
*m2 in thousands.
Pawnshop branches Banking Branches Branches Stores USA Stores MX
Famsa Mexico
4. Famsa Mexico
10
Net Sales
Sales by product mix
+4.5%
(Millions of MXP)
7,253
6,940
+2.8%
(Millions of MXP) 8.0% 5.0% 2.6% 2.7% 6.3%
3,793
3,689
12.0%
2Q16
YTD 16
2Q17
12.8%
YTD 17
11.5%
9.9%
12.4%
13.8%
9.2%
6.8%
10.9%
12.9% 9.0% 11.6%
Seasonal Goods Clothing Computers
13.6%
Famsa MX
6.0%
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
2.4% 3.2% 6.4%
Others
9.3%
Motorcycles Mobile Phones Appliances Electronics Furniture
6.9%
4Q15
3Q15
3.1%
6.7% 3.1% 2.7% 2.6% 6.7%
10.3%
26.8%
2.6% 2Q15
11.5%
11.8%
10.4%
10.0%
8.0%
10.8%
8.9%
Same Store Sales (SSS) 10.0%
3.8% 5.1% 3.1% 2.1% 6.4%
30.3%
36.8%
2Q16 2Q16
2Q17 2Q17
YTD 16
35.5%
YTD 17
Loans
Famsa USA
5. Famsa USA
12
Net Sales
Sales by product mix
(Millions of MXP)
(Millions of MXP)
USD: -23.8% MXP: -19.2%
USD: -25.5% MXP: -24.8% 592
2.2% 4.9%
1,154 933 446
2Q17
11.9%
15.1%
11.6%
14.3%
11.4%
10.9%
12.3%
11.7%
YTD 16
5.1%
2.2% 5.5%
12.2% 2Q16
5.1%
2.3% 5.5% 5.8%
6.1%
2.0% 4.3%
11.2% 12.7%
12.7%
Computers Others Famsa to Famsa Loans Electronics
YTD 17 50.9%
48.2%
52.2%
48.8%
Appliances Furnitures
2Q16
F to F
2Q17
YTD 16
YTD 17
Banco Famsa
6. Banco Famsa
14
Bank Deposits (Millions of MXP)
19,742
18.0% 21,166
21,063
Loans Deposits
Famsa card, credit cards, microcredits, SMEs, Fovisste, enterprises, Credinero and Prendinero
4.1%
4.3%
4.5%
2Q16
3Q16
4Q16
21,675
23,295
5.5%
5.9%
1Q17
2Q17 Funding Cost
Savings, payroll, checks and investments
Services e-Banking, ATMs, payroll, TPVs, remittances, money orders and insurance
Bank Deposits Mix 2Q16 Demand deposits 10% Opnl Availability 19% Time Deposits 71%
2Q17 Demand deposits 13% Opnl Availability 14% Time Deposits 73%
Banco Famsa
15
Portfolio of Loans*
Portfolio of Loans Mix
(Millions of MXP)
2Q16
+25.4% 3,618 2.3%
2Q16
4,169
4,004 2.1%
2.2%
3Q16
4Q16
4,483
1.8%
1Q17
2Q17
PYME Financial 13% 12% Microcredit Others 3% 15%
4,537
Financial 12% Others 17%
0.9%
Empresarial 59%
Empresarial 57%
2Q17
PYME 12%
Commercial NPL ratio
Non-performing Loans Ratio (NPL)** 11.9%
Jun'15
10.4%
9.8%
Sep'15
Dec'15
*Gross Balance **Includes credits discounted by payroll Source: Banco Famsa
8.7%
9.1%
8.8%
8.5%
8.5%
8.3%
Mar'16
Jun'16
Sep'16
Dec'16
Mar'17
Jun'17
Consolidated Results
Resultados Consolidados
17
Gross Profit
(Millions of MXP)
EBITDA
-2.5% 47.6%
-6.5% 46.7%
44.1%
2,013 292
1,882 202
1,721
1,680
(Millions of MXP) -10.6% 9.7%
45.9%
3,884 585
3,787 435 Famsa USA 3,352
3,299
Famsa MX*
419 48
10.3% 838
8.8%
-5.6%
811
375
746
384
371
2Q17
YTD 16
YTD 17
-20 YTD 17
(Millions of MXP)
(Millions of MXP)
+134.4%
+19.3% 5.9%
YTD 16
Net Income
Financial expenses (1) 5.0%
2Q17
*Includes other segments and intercompanies.
*Includes other segments and intercompanies
+18.0%
2Q16
5.3%
6.2%
3.7%
8.9%
3.9%
+120.3%
8.6%
706 213
252
2Q16
2Q17
429 YTD 16
(1) Financial expenses= Interest paid
512 162 YTD 17
2Q16
Famsa USA Famsa MX
-9 2Q16
9.6% 791
380
321
2Q17
YTD 16
YTD 17
Financial Position Items
8. Financial Position Items
19
Trade receivables (Millions of MXP)
+5.7%
25,893
Net debt & bank deposits
27,380 2,003 4,049
2,619 3,691
(Millions of MXP)
29,560 Consumer USA
+2.7%
30,358 7,063
8,497
Net Debt
Commercial MX 21,328
19,583
Consumer MX
23,295
21,063
Bank Deposits 11.6%
4Q16
4Q16
2Q17
Stockholders’ equity
Inventories
(Millions of MXP)
2,554 315
2Q17
(Millions of MXP)
-2.4%
2,492
8,315
227
+6.0%
8,818
Famsa USA 2,239
2,265
Famsa MX 2.8% 11.6%
4Q16
2Q17
4Q16
2Q17
8. Financial Position Items: Debt Structure
20
Funding Sources
Debt Profile
(Millions of MXP)
(Millions of MXP)
32,219
32,219
9%
9%
15%
23%32
21%
19%
13%
68%
70%,
72%
72%
4Q16
1Q17
2Q17
PRO FORMA BANCOMEXT
31,064 10,001 57% 20%
9%
9,215
8,923
55%
54%
8,923 32% 51%
26%
29%
23%
19%
17%
17%
4Q16
1Q17
2Q17
PRO FORMA BANCOMEXT
Debt Certificates
Credit Lines
* Includes local notes and foreign senior notes.
30,890
Foreign Debt
Bank Deposits
Commercial Papers*
Bank Loans
8. Financial Position Items: Debt Structure
21
Debt Profile: By Currency (Millions of MXP)
2Q17
Pro forma Bancomext 68%
$4,830
54% 46%
MXP
$4,093
$2,843
USD
32%
MXP
$6,080
USD
Debt Profile: By Rate (Millions of MXP)
Pro forma Bancomext
2Q17
67% $4,000
55% 45% Fixed Rate
$4,923
Floating Rate
$5,987
33% Fixed Rate
$2,936
Floating Rate
22
Note on Forward-Looking Statements The material presented below contains certain general information to date regarding Grupo Famsa, S.A.B. Of C.V. (Collectively, "Famsa Group" or the "Company"). The information is showed as a summary form and is not intended to be complete. There is no representation or warranty, express or implied, regarding the accuracy, impartiality or integrity of this information. This presentation contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Grupo Famsa, S.A.B. de C.V. and its subsidiaries may differ from the results expressed in, or implied by, the forward-looking statements set out herein, possibly to a material degree. We warn that an important number of factors could cause that the actual results to differ from the plans, targets, expectations, estimates and intentions expressed in this presentation. In no event shall neither the Company nor any of its affiliates, directors, officers, agents or employees be liable to third parties for any investment or business decision made or for the actions taken based on the information and statements contained in this presentation. The market-related information and the competitive position of Grupo Famsa, including the market estimates used throughout this presentation were obtained from reliable public sources and the Company assumes no obligation as to the accuracy of said disclosure. information. This presentation and its contents are the property of the Company and may not be reproduced or distributed in whole or in part without the prior written consent from Grupo Famsa. Whoever receives this presentation, must comply with the applicable legal provisions and must obtain each and every one of the authorizations that apply to him. Neither the Company nor any of its affiliates, directors, officers, agents or employees shall be liable to third parties for such provisions. All the relevant information of the issuer, in particular that relating to risk factors, is contained in the annual report of Grupo Famsa for fiscal year 2014 and in the other reports disclosed by the Company, which can be found in the websites of The Mexican Stock Exchange www.bmv.com.mx and www.grupofamsa.com.
23
Contact We have a strong commitment to keeping you updated. Please do not hesitate to contact us.
Investor Relations Paloma Arellano [email protected]
+52 (81) 8389 3405
Agenda
2
Recent Developments……...…………….....………….3
1
Operational Strategies……....………………...……5
2
3
2Q17 6 7 8
Consolidated Results – Net Sales...………..…...7
4
Famsa Mexico……..……………………….…….. 9
5
Famsa USA..………………………..................... 11
Banco Famsa.…………………….….…………....... 13
Consolidated Results……………................................16
Financial Position Items….....…...........................................18
Recent Developments
4
1. Recent Developments
Credit facility subscribed by MXP$2,634 million with BANCOMEXT. A credit facility was subscribed at an interest rate of TIIE + 300 bps. for a 10-year term The resources obtained from this credit facility will be used to settle a US$110 million advance payment of our Senior Notes @ 2020, and to amortize approximately MXP$700 million of short-term bank debt. As a result of this transaction, the Company will decrease its outstanding Dollar-denominated debt balance by 43%, thus substantially reducing its exposure to the FX MXP-USD fluctuation
Operational Strategies
2. Strategies 2017: Initiatives
6
I. Asset Monetization
Grupo Famsa expect to conclude the sales process of 17 properties during 2H17, with an approximate combined value of Ps.1,100 million. Use of resources: amortization of short-term maturities.
II. Commercial Network
III. Risk Management
• Optimization of our commercial network, closing 1 store and 6 banking branches in Mexico, as well as 2 stores in the U.S. during the second quarter 2017 Expected closures: MX: 3 stores, 4 banking branches, 10 pawnshop branches. USA: 3 stores
• The participation of clients from the formal economy in 2Q17 was 66% vs 61% in 2Q16 • NPL (Includes credits discounted by payroll): 8.3%
IV. Corporate Governance
• We reinforced our structure and processes with the appointment of a new Internal Audit VP
Consolidated Results – Net Sales
3. Consolidated Results – Net Sales
8
Net Sales by product mix
Net Sales by country (Millions of MXP)
-1.0% 4,311 592
8,151
8,247
1,154
933
446
3,719
3,823
2Q16
2Q17
YTD 16
YTD 17
13.3%
Famsa USA
15.4%
Famsa MX
27.8%
34.5%
2Q16
2Q17
14.0% 3.0% 5.5% 11.6% 10.2%
2Q16
2Q17
Total
+5.1%
(0.3%)
Famsa Mexico
+6.9%
+2.6%
(6.8%)
(25.5%)
* Excluding exchange rate effect * Mexican Pesos
919 398 28
26
379 2Q16
390 26 24 377 2Q17
Computers Motorcycles Electronics Mobile Phones Appliances
13.8% 33.2%
24.7%
Forniture Loans
Retail-area -2.1%
861 44
13.5%
16.1%
-6.5%
88
12.2% 5.9% 2.5% 9.3% 9.6%
12.8%
Business-units
Same Store Sales (SSS)
USA*
13.7%
12.8%
7,314
Others
11.9% 5.7% 2.1% 9.1% 9.7%
14.9% 5.4% 2.7% 10.6% 10.4%
4,268 6,997
Famsa
(Millions of MXP)
+1.2%
6
568 40 4
66
451
2Q16-m2*
556 3 38 4
64
447
2Q17-m2*
*m2 in thousands.
Pawnshop branches Banking Branches Branches Stores USA Stores MX
Famsa Mexico
4. Famsa Mexico
10
Net Sales
Sales by product mix
+4.5%
(Millions of MXP)
7,253
6,940
+2.8%
(Millions of MXP) 8.0% 5.0% 2.6% 2.7% 6.3%
3,793
3,689
12.0%
2Q16
YTD 16
2Q17
12.8%
YTD 17
11.5%
9.9%
12.4%
13.8%
9.2%
6.8%
10.9%
12.9% 9.0% 11.6%
Seasonal Goods Clothing Computers
13.6%
Famsa MX
6.0%
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
2.4% 3.2% 6.4%
Others
9.3%
Motorcycles Mobile Phones Appliances Electronics Furniture
6.9%
4Q15
3Q15
3.1%
6.7% 3.1% 2.7% 2.6% 6.7%
10.3%
26.8%
2.6% 2Q15
11.5%
11.8%
10.4%
10.0%
8.0%
10.8%
8.9%
Same Store Sales (SSS) 10.0%
3.8% 5.1% 3.1% 2.1% 6.4%
30.3%
36.8%
2Q16 2Q16
2Q17 2Q17
YTD 16
35.5%
YTD 17
Loans
Famsa USA
5. Famsa USA
12
Net Sales
Sales by product mix
(Millions of MXP)
(Millions of MXP)
USD: -23.8% MXP: -19.2%
USD: -25.5% MXP: -24.8% 592
2.2% 4.9%
1,154 933 446
2Q17
11.9%
15.1%
11.6%
14.3%
11.4%
10.9%
12.3%
11.7%
YTD 16
5.1%
2.2% 5.5%
12.2% 2Q16
5.1%
2.3% 5.5% 5.8%
6.1%
2.0% 4.3%
11.2% 12.7%
12.7%
Computers Others Famsa to Famsa Loans Electronics
YTD 17 50.9%
48.2%
52.2%
48.8%
Appliances Furnitures
2Q16
F to F
2Q17
YTD 16
YTD 17
Banco Famsa
6. Banco Famsa
14
Bank Deposits (Millions of MXP)
19,742
18.0% 21,166
21,063
Loans Deposits
Famsa card, credit cards, microcredits, SMEs, Fovisste, enterprises, Credinero and Prendinero
4.1%
4.3%
4.5%
2Q16
3Q16
4Q16
21,675
23,295
5.5%
5.9%
1Q17
2Q17 Funding Cost
Savings, payroll, checks and investments
Services e-Banking, ATMs, payroll, TPVs, remittances, money orders and insurance
Bank Deposits Mix 2Q16 Demand deposits 10% Opnl Availability 19% Time Deposits 71%
2Q17 Demand deposits 13% Opnl Availability 14% Time Deposits 73%
Banco Famsa
15
Portfolio of Loans*
Portfolio of Loans Mix
(Millions of MXP)
2Q16
+25.4% 3,618 2.3%
2Q16
4,169
4,004 2.1%
2.2%
3Q16
4Q16
4,483
1.8%
1Q17
2Q17
PYME Financial 13% 12% Microcredit Others 3% 15%
4,537
Financial 12% Others 17%
0.9%
Empresarial 59%
Empresarial 57%
2Q17
PYME 12%
Commercial NPL ratio
Non-performing Loans Ratio (NPL)** 11.9%
Jun'15
10.4%
9.8%
Sep'15
Dec'15
*Gross Balance **Includes credits discounted by payroll Source: Banco Famsa
8.7%
9.1%
8.8%
8.5%
8.5%
8.3%
Mar'16
Jun'16
Sep'16
Dec'16
Mar'17
Jun'17
Consolidated Results
Resultados Consolidados
17
Gross Profit
(Millions of MXP)
EBITDA
-2.5% 47.6%
-6.5% 46.7%
44.1%
2,013 292
1,882 202
1,721
1,680
(Millions of MXP) -10.6% 9.7%
45.9%
3,884 585
3,787 435 Famsa USA 3,352
3,299
Famsa MX*
419 48
10.3% 838
8.8%
-5.6%
811
375
746
384
371
2Q17
YTD 16
YTD 17
-20 YTD 17
(Millions of MXP)
(Millions of MXP)
+134.4%
+19.3% 5.9%
YTD 16
Net Income
Financial expenses (1) 5.0%
2Q17
*Includes other segments and intercompanies.
*Includes other segments and intercompanies
+18.0%
2Q16
5.3%
6.2%
3.7%
8.9%
3.9%
+120.3%
8.6%
706 213
252
2Q16
2Q17
429 YTD 16
(1) Financial expenses= Interest paid
512 162 YTD 17
2Q16
Famsa USA Famsa MX
-9 2Q16
9.6% 791
380
321
2Q17
YTD 16
YTD 17
Financial Position Items
8. Financial Position Items
19
Trade receivables (Millions of MXP)
+5.7%
25,893
Net debt & bank deposits
27,380 2,003 4,049
2,619 3,691
(Millions of MXP)
29,560 Consumer USA
+2.7%
30,358 7,063
8,497
Net Debt
Commercial MX 21,328
19,583
Consumer MX
23,295
21,063
Bank Deposits 11.6%
4Q16
4Q16
2Q17
Stockholders’ equity
Inventories
(Millions of MXP)
2,554 315
2Q17
(Millions of MXP)
-2.4%
2,492
8,315
227
+6.0%
8,818
Famsa USA 2,239
2,265
Famsa MX 2.8% 11.6%
4Q16
2Q17
4Q16
2Q17
8. Financial Position Items: Debt Structure
20
Funding Sources
Debt Profile
(Millions of MXP)
(Millions of MXP)
32,219
32,219
9%
9%
15%
23%32
21%
19%
13%
68%
70%,
72%
72%
4Q16
1Q17
2Q17
PRO FORMA BANCOMEXT
31,064 10,001 57% 20%
9%
9,215
8,923
55%
54%
8,923 32% 51%
26%
29%
23%
19%
17%
17%
4Q16
1Q17
2Q17
PRO FORMA BANCOMEXT
Debt Certificates
Credit Lines
* Includes local notes and foreign senior notes.
30,890
Foreign Debt
Bank Deposits
Commercial Papers*
Bank Loans
8. Financial Position Items: Debt Structure
21
Debt Profile: By Currency (Millions of MXP)
2Q17
Pro forma Bancomext 68%
$4,830
54% 46%
MXP
$4,093
$2,843
USD
32%
MXP
$6,080
USD
Debt Profile: By Rate (Millions of MXP)
Pro forma Bancomext
2Q17
67% $4,000
55% 45% Fixed Rate
$4,923
Floating Rate
$5,987
33% Fixed Rate
$2,936
Floating Rate
22
Note on Forward-Looking Statements The material presented below contains certain general information to date regarding Grupo Famsa, S.A.B. Of C.V. (Collectively, "Famsa Group" or the "Company"). The information is showed as a summary form and is not intended to be complete. There is no representation or warranty, express or implied, regarding the accuracy, impartiality or integrity of this information. This presentation contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Grupo Famsa, S.A.B. de C.V. and its subsidiaries may differ from the results expressed in, or implied by, the forward-looking statements set out herein, possibly to a material degree. We warn that an important number of factors could cause that the actual results to differ from the plans, targets, expectations, estimates and intentions expressed in this presentation. In no event shall neither the Company nor any of its affiliates, directors, officers, agents or employees be liable to third parties for any investment or business decision made or for the actions taken based on the information and statements contained in this presentation. The market-related information and the competitive position of Grupo Famsa, including the market estimates used throughout this presentation were obtained from reliable public sources and the Company assumes no obligation as to the accuracy of said disclosure. information. This presentation and its contents are the property of the Company and may not be reproduced or distributed in whole or in part without the prior written consent from Grupo Famsa. Whoever receives this presentation, must comply with the applicable legal provisions and must obtain each and every one of the authorizations that apply to him. Neither the Company nor any of its affiliates, directors, officers, agents or employees shall be liable to third parties for such provisions. All the relevant information of the issuer, in particular that relating to risk factors, is contained in the annual report of Grupo Famsa for fiscal year 2014 and in the other reports disclosed by the Company, which can be found in the websites of The Mexican Stock Exchange www.bmv.com.mx and www.grupofamsa.com.
23
Contact We have a strong commitment to keeping you updated. Please do not hesitate to contact us.
Investor Relations Paloma Arellano [email protected]
+52 (81) 8389 3405
