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4Q17 and FY17 Investor Presentation
DisclaimerGENERAL 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 ispresented in a summarized fashion and is not intended to be comprehensive. Nor does it constitute a recommendation for potential investors. This presentation isstrictly 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 beemphasized. 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 thatsaid declarations will prove to be correct. These risks and uncertainties include factors related to all the economies where we operate, which in turn may showvolatility 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 tothe 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 analternative 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. Decisionsbased on information contained herein are the sole responsibility of the person viewing it. In exchange for utilizing the information you agree to indemnify and holdMabe, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including butnot 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 theapplication 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.
2
Solid top-line performance; sales and volume rose 8.6% and 5.0%, however, EBITDA scaled back
Further strengthened our market share in all of our geographies
Record CapEx as part of new projects with GEA-Haier
Full Year Summary 3
Gross and net debt reduction of 0.8% and 4.9%, respectively
Improved debt maturity profile with new Club Deal
4
On January 22, 2018, the Trump administration announced Tariff-Rate Quotas (TRQs) on imported Large Residential Washers from certain countries
Mabe will not be affected by these TRQs as we do not export LRWs to the US
Mabe exports laundry centers and dryers, which are not within the scope of these tariffs
Mabe does not foresee further TRQs
LRW Tariffs
54Q17 Sales by Core Business and Region
4.7%3.5%
Total Mabe
100%
32%
35%
26%
7%
% Δ in LC % Δ in USD
2.5% 0.8%4.9%
Latin America
25%
22%
57%
15%
6%
International
4%
34%
37%
19%
10%
5.3%
6.5% 4.3%
North America
46%
38%
27%
31%
4%
Mexico
25%
31%
29%
29%
11%
(0.2%)
4Q17 Volume, Sales and EBITDA
Volume Sales EBITDA
6
13.6% 12.4% 7.6%
Margin
104 100
65
4Q15 4Q16 4Q17
767
813
851
4Q15 4Q16 4Q17
2,990
3,268
3,342
4Q15 4Q16 4Q17
Figures in US$MM, unless otherwise shown
FY17 Sales by Core Business and Region
8.1%8.6%
Total Mabe
100%
31%
36%
26%
7%
8.4%
11.9% 7.0%
Mexico
25%
29%
31%
27%
13%
North America
47%
37%
29%
30%
4%
7.9%11.3%
% Δ in LC % Δ in USD
7.9% (4.8%)
6.4% (9.4%)7.9%
Latin America
23%
22%
54%
18%
6%
International
5%
35%
38%
17%
10%
7
FY17 Volume, Sales and EBITDA
Volume Sales EBITDA
8
10.7% 10.3% 8.1%
Margin
10,366
10,890
11,419
FY15 FY16 FY17
295 282
240
FY15 FY16 FY17
2,747 2,7362,959
FY15 FY16 FY17
Figures in US$MM, unless otherwise shown
4Q and FY17 Results Overview 9
Figures in US$MM, unless otherwise shown
4Q 4Q 4Q 4Q
2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016
32 25 30% 637 670 (5%) 2.65 2.47 0.08x 3.25 4.20 (0.23x)
FY FY FY FY2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016
11,419 10,890 5% 2,959 2,736 8% 240 282 (15%) 8.1% 10.3% (2%)
EBITDA MARGINUnits Sales EBITDA
FY FY FY FY2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016
139 103 36% 637 670 (5%) 2.65 2.38 0.27x 3.25 4.20 (0.95x)
Net Interest CoverageNet LeverageNet DebtCapEx
4Q 4Q 4Q 4Q
2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016 2017 2016 ∆ vs 2016
3,342 3,268 2% 851 813 5% 65 100 (36%) 7.6% 12.4% (5%)
FY17 Free Cash Flow 10
32.8
Figures in US$MM, unless otherwise shown
Figures in US$MM, unless otherwise shown
FY17 Free Cash Flow 10
Main deterrents:- US$15.8MM product recall- US$5.2MM impact from raw material inflation
53.8
$778
$637$670
Gross Debt
Net Debt(4.9%)
(0.8%)
Short Term + CMLTD Long Term
FY16
FY16 FY17
FY17
Debt Profile
4.2%
95.8%
$784
New Club Deal - duringDecember 2017, we
refinanced our 2015 Club Deal, with a new US$72MM in MXN Club Deal, thus improving ouramortization schedule and our
debt currency mix
481
175
24 24 24 25
8
8
8 4
2018 2019 2020 2021 2022 2026
Notes 2019 Private Placement Club Deal ST Debt CAD Loan
2.1%
97.9%
11
Figures in US$MM, unless otherwise shown
Outlook for 2018 12
Strong US momentum – incremental demand for products in the US
Sourcing efficiencies
Additional business with Haier is starting to materialize. We are fulfilling demand for narrow products in LatAm
Challenging environment in Argentina, Chile and Peru
Net debt reduction. Actively reviewing bond refinancing alternatives