Earnings Release 4Q15 - investor cloudcdn.investorcloud.net/.../Reportes/2015-4T15-A-En.pdfEarnings Release 4Q15 Paloma E. Arellano Bujanda [email protected] Tel. +52 (81)

Earnings Release 4Q15

Paloma E. Arellano Bujanda

Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

1/14

Highlights

Consolidated Financial Results

4Q15 4Q14 ∆% 2015 2014 ∆%

Net Sales 4,755 4,392 8.3% 16,377 14,856 10.2% Cost of Sales (3,223) (2,553) 26.3% (9,322) (8,065) 15.6% Gross Profit 1,532 1,839 (16.7%) 7,055 6,791 3.9% Operating Expenses (1,392) (1,636) (14.9%) (5,991) (5,817) 3.0% Other income, net 5 16 (68.4%) 61 49 25.9% Operating Profit 145 219 (33.8%) 1,124 1,023 9.9% EBITDA 354 354 (0.0%) 1,670 1,442 15.8% Net Income (103) 47 (317.6%) 149 371 (59.8%) Gross Margin 32.2% 41.9% - 43.1% 45.7% - EBITDA Margin 7.4% 8.1% - 10.2% 9.7% - Net Margin (2.2%) 1.1% - 0.9% 2.5% -

Grupo Famsa posted a 8.3% growth in its Consolidated Total Sales in the

fourth quarter 2015 Consolidated EBTIDA remained almost unchanged vs 4Q14, amounting to

Ps.354 million

Famsa Mexico’s Total Sales growth trend accelerated in 4Q15, growing by 8.9%

Personal Loans, Motorcycles and Electronics’ contribution stands out in the sales mix of the quarter

Banco Famsa’s Non-performing Loans (NPL) Ratio was 9.8% as of December

31, 2015, 440 bps that as of year-end 2014 (14.2%) Bank Deposits recorded a significant growth of 24.5% YoY, totaling Ps.18,359

million as of year-end 2015

Famsa USA’s Total Sales in MXPs increased by 4.2% in 4Q15 Personal Loans and Famsa-to-Famsa Sales performed as top drivers,

recording a higher dynamism than the rest of the categories in 4Q15

Monterrey, Mexico, May 27, 2016. – Grupo Famsa, S.A.B. de C.V. (BMV: GFAMSA), a leading

Mexican commercial conglomerate in the retail, consumer credit and savings sectors,

announced today its earnings results for the fourth quarter and full-year 2015. These audited

financial statements have been prepared in accordance with IFRS and the interpretations valid

as of December 31, 2015. Figures are expressed in millions of current, nominal Mexican pesos,

unless otherwise stated.

Famsa Mexico

Banco Famsa

Famsa USA

Grupo Famsa



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

2/14

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

The continuous strengthening of our operations in Mexico drove a 8.3% growth in the Consolidated Net

Sales for the fourth quarter 2015. Our Consolidated EBITDA for the full-year 2015 amounted to Ps.1,670

million, an increase of 15.8% vs. 2014.

In 4Q15, we launched advertising campaigns designed to enhance the profitability of our store network

and continued to improve our credit origination procedures, through a timely estimation of our

customers’ payment capacity. These initiatives were reflected in the rise of 8.9% YoY in Net Sales that

Famsa Mexico posted this quarter.

Additionally, the increased efficiency of our credit-granting procedures, combined with the enhancement

of our collection model throughout 2014 and 2015, continued to have a positive impact on Banco Famsa’s

Non-Performing Loans (NPL) ratio, which has declined 780 bps., from 17.6% in June 2014 to 9.8% in

December 2015. The constant and sustained improvement of this indicator reflects the implementation

of a comprehensive strategy to make the recovery of loans and collection of nonperforming accounts

more agile in each of the different cities we operate.

In Famsa USA, Net Sales grew by 4.2% in MXP during the fourth quarter 2015. It is important to note that

we continued to observe dynamism in the origination of Personal Loans and Famsa to Famsa category.

We are committed to consolidating the 2015 positive results as we go forward. In 2016, we expect to

achieve an annual growth in Consolidated Net Sales in the range of 6% to 9%, and an annual growth rate

in the range of 12% to 18% in Consolidated EBITDA.

Humberto Garza Valdez

Chief Executive Officer



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

3/14

Business Segments

Famsa Mexico

In 4Q15, a higher dynamism was reflected through the innovation of our commercial initiatives; resulting

in a notable increase of Famsa Mexico’s sales volume. Total Sales in Mexico rose by 8.9% during the 2015.

An important part of this growth was a result of our agility to leverage opportunities originated from the

strong seasonal demand of El Buen Fin and the Christmas season. In addition, Famsa Mexico offered

attractive promotions that were highly advertised, such as “99 semanales o menos” (99 per week or less,

referring to 99 pesos) and “Más barato que en USA” (Cheaper than in the USA), thereby driving demand

for core categories. During 4Q15, sales volumes of Motorcycles and Electronics grew by 14.5% and 12.0%

respectively, YoY.

Banco Famsa

During 2014 and 2015, Banco Famsa implemented diverse initiatives to improve the performance of its

operations, driving a careful monitoring of credit indicators across our different locations and regions, as

well as the timely deployment of collection teams; thus improving the tracking of debtors, while offering

payment alternatives according to our customers’ financial capacity, and thereby reducing the bank’s

credit risk. Consequently, Banco Famsa posted a substantial improvement in its (NPL) ratio, which

dropped to 9.8% as of December 31, 2015, 780 bps below the highest record of 17.6% posted in June

2014.

Source: Banco Famsa

For the full-year 2015, Bank Deposits, distributed over 1.2 million accounts, totaled Ps.18,359 million,

24.5% above those as of year-end 2014, reflecting the successful campaign designed to expand our

deposits base that was implemented during the final quarter of the year. As of year-end 2015, Bank

Deposits represented 66.9% of Grupo Famsa’s funding sources. It is important to note that 90.0% of these

15.4% 16.4%16.5%

14.8%15.1%

15.7%

17.6%

16.2%

14.2%13.3%

11.9%

10.4%9.8%

9.5%

11.5%

13.5%

15.5%

17.5%

Dec´12 Mar´13 Jun´13 Sep´13 Dec´13 Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 Jun'15 Sept'15 Dec'15

Banco Famsa: Non-Performing (NPL) Ratio



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

4/14

deposits correspond to time deposits, reflecting the trust that we have generated in our expanded

customer platform. Additionally, Banco Famsa’s average cost of funding dropped to a new record low of

4.1% during 4Q15.

Interest on Bank Deposits totaled Ps.180 million in 4Q15, increasing 3.3%, while accumulated Interest on

Bank Deposits as of year-end, 2015 fell 1.5% to Ps.685 million.

Source: Banco Famsa

Finally, Banco Famsa continued to implement its credit portfolio diversification strategy, growing the base

of productive loans to Ps.4,009 million in 4Q15, 37.7% higher than that of the previous year. The NPL of

its commercial portfolio remained stable, at 2.1% as of December 31, 2015.

Famsa USA

During the last three months of 2015, Famsa USA posted a 4.2% increase in MXP Net Sales. Excluding the foreign exchange effect, the origination of Personal Loans and Famsa-to-Famsa Sales (a sales system whereby our customers can purchase products in the United States for delivery in Mexico) continued to show strong dynamism, growing in USD by 36.0% and 38.2%, respectively, in 4Q15.

1,582 1,592 1,622 1,751 1,831

2,475 2,998 3,298 3,572 3,456

10,695

10,901 10,787

11,178

13,072

4.7%

4.4% 4.4%

4.2%4.1%

3.8%

4.0%

4.2%

4.4%

4.6%

4.8%

4Q14 1Q15 2Q15 3Q15 4Q15

Banco Famsa: Bank Deposits

Demand Deposits Time deposits with optional availability

Time Deposits Avg. Cost of Funding

14,752 15,491 15,707 16,501

18,359



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

5/14

Business Units

The following breakdown of our network of stores and bank branches is presented to clearly illustrate Grupo Famsa´s business units results.

Retail Stores & Banking

Business Units Floor Space (m2)

4Q15 Openings Closures 3Q15 4Q14 ∆% YoY 4Q15 4Q14 ∆% YoY

Total 919 18 17 918 913 0.7% 566,110 553,405 2.3%

Stores 431 15 0 416 410 5.1% 519,187 505,683 2.7%

Famsa Mexico 377 2 0 375 370 1.9% 448,603 439,026 2.2%

Famsa USA 26 0 0 26 25 4.0% 66,434 64,434 3.1%

PL USA Branches 28 13 0 15 15 86.7% 4,150 2,223 86.7%

Banking Branckes¹ 400 3 5 402 401 (0.2)% 40,791 40,582 0.5%

To be Conv. Bches.² 88 0 12 100 102 (13.7)% 6,133 7,140 (14.1)%

(1) Most banking branches are located within Famsa Mexico stores (2) Acquisition of branches from Monte de Mexico, S.A. de C.V. closures refer to acquired branches converted to banking branches.

Consolidated Financial Statements

Net Sales

(1) Includes sales of non-retail businesses (2) Includes Banco Famsa

4Q15 Consolidated Net Sales totaled Ps. 4,755 million, rising 8.3% vs 4Q14. This result was mostly due to

the continuous improvement of operations in Mexico driven by advertising campaigns designed to

stimulate the demand for durable goods; reaching a solid growth in sales and capitalizing the benefits of

the strong seasonal demand of November and December.

Accumulated Consolidated Net Sales totaled Ps.16,377 million as of December 31, 2015, increasing by

10.2% vs. 2014. During the second half of the year we experienced accelerated growth in Famsa Mexico’s

durable goods sales, posting a 9.5% growth for full-year 2015. Famsa USA’s sales rose by 15.9% YoY in

2015, driven by stronger dollar.

Segment Net Sales Same Store Sales (SSS)

4Q15 4Q14 ∆% 2015 2014 ∆% 4Q15 4Q14 2015 2014

Grupo Famsa¹ 4,755 4,392 8.3% 16,377 14,856 10.2% 7.2% 6.3% 7.7% 6.3%

Famsa Mexico² 4,221 3,875 8.9% 14,239 13,008 9.5% 8.2% 7.5% 8.5% 7.5%

Famsa USA 504 484 4.2% 2,027 1,749 15.9% 1.3% 0.4% 2.2% 0.4%

Others 271 254 6.5% 941 802 17.4% - - - -

Intercompany (240) (221) 8.9% (830) (702) 18.3% - - - -



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

6/14

Similarly, Grupo Famsa’s Consolidated Same Store Sales (SSS) grew by 7.2% in the quarter and 7.7% for

full-year 2015, boosted by the 8.2% and 8.5% growth of Famsa Mexico’s SSS for 4Q15 and full-year 2015,

respectively.

Cost of Sales

The 4Q15 Consolidated Cost of Sales rose by 26.3%, reaching Ps.3,223 million, in line with a higher volume

of sales and higher allowance for impairment of loan portfolios*. The accumulated Consolidated Cost of

Sales for full-year 2015 was Ps.9,322 million, 15.6% above that of the previous year.

Gross Profit

Consolidated Gross Profit for 4Q15 decreased, by 16.7%, to Ps.1,532 million. The quarterly Consolidated

Gross Margin declined by 970 bps, from 41.9% in 4Q14 to 32.2% in 4Q15, as a result of higher promotions

on the sales floor and a rise in the allowance for impairment of loan portfolios*

Accumulated Consolidated Gross Profit as of December 31, 2015 was Ps.7,055 million, 3.9% above 2014.

The accumulated Consolidated Gross Margin as of December 31, 2015, was 43.1%, a decrease of 260 bps.

YoY.

* For more detail, see Notes 2, 5.2.4, and 8 of the audited financial statements for the year 2015.

15.1% 18.6% 15.7% 20.6%

16.5%17.4% 20.1%

18.7%

18.0%17.3% 15.8%

16.4%

13.4%12.6% 13.1%

13.0%10.6% 9.8% 10.6%

10.0%14.9% 14.6% 13.3% 11.7%5.2% 5.3% 6.0% 5.8%6.3% 4.4% 5.4% 3.9%

4Q14 4Q15 2014 2015

Consolidated Sales Mix

Computers

Motorcycles

Electronics

Mobile Phones

Appliances

Furniture

Personal Loans

Other

$4,392$4,755 $14,856

$16,377



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

7/14

Operating Expenses

Accumulated Consolidated Operating Expenses, comprising selling and administrative expenses, grew

3.0% in 2015, growing from Ps.5,817 million in 2014 to Ps.5,991 million as of year-end 2015. This increase

largely reflects a rise in Famsa Mexico’s operating expenses during the full-year 2015, resulting from

higher origination expenses and a larger number of stores. Selling and administrative expenses related to

Famsa USA’s operations grew by 12.1% YoY in dollar terms, as a result of the new branches for personal

loans that opened in 2015. This increase is equivalent to 33.8%, in MXP, due to the depreciation of the

MXP vs. the USD.

EBITDA

Segment EBITDA % EBITDA

4Q15 4Q14 ∆% 2015 2014 ∆% 4Q15 4Q14 2015 2014

Grupo Famsa¹ 354 354 - 1,670 1,442 15.8% 7.4% 8.1% 10.2% 9.7%

Famsa Mexico² 428 301 42.4% 1,643 1,309 25.5% 10.1% 7.8% 11.5% 10.1%

Famsa USA (116) (6) - (15) 88 (116.7%) (23.1%) (1.3%) (0.7%) 5.0%

Others 42 60 (29.1%) 42 45 (7.4%) - - - - Intercompany (0) (0) 22.0% (0) (0) 26.9% - - - -

(1) Includes EBITDA from non-retail business (2) Includes Banco Famsa

Consolidated EBITDA for 4Q15 remained virtually unchanged from the 4Q14. The Consolidated EBITDA

margin decreased by 70 bps., from 8.1% in 4Q14 to 7.4% in 4Q15, reflecting a higher product cost of sales

and the rise in the allowance for impairment of loan portfolios. Accumulated Consolidated EBITDA for the

full-year 2015 rose by 15.8%, reaching Ps.1,670 million, and the Consolidated EBITDA Margin expanded

to 10.2%, 50 bps. above that of 2014.

Financial Expenses, Net

4Q15 4Q14 ∆% 2015 2014 ∆%

Interest income 2 1 207.3% 4 2 126.5%

Interest expenses (214) (127) 68.0% (755) (692) 9.0%

FX gain & losses, net (59) (178) (67.1)% (462) (215) 114.5%

Total (270) (305) (11.3)% (1,213) (906) 33.9%

Consolidated Financial Expenses, Net for fourth quarter 2015 fell by 11.3%, reaching Ps.270 million. Grupo

Famsa recognized a foreign exchange (FX) loss of Ps.59 million, compared to a FX loss of Ps.178 million in

4Q14.

Accumulated Consolidated Financial Expenses, Net, as of December 31, 2015, totaled Ps.1,213 million,

33.9% above those of 2014, mostly resulting from the effect of the devaluation of the MXP vs. the USD.

Accumulated Interest Expense for the full-year 2015 grew by 9.0%, reaching Ps.755 million, compared to



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

8/14

Ps.692 million in 2014. The accumulated FX loss in 2015 was Ps.462 million, compared to Ps.215 million in

2014. It is important to note that the exchange rate changes recognized in the Income Statement are

neutralized by 52% with the revaluation of dollar-denominated assets recorded in stockholders' equity

during the full year (foreign currency translation adjustment).

Net Income

In 4Q15 a consolidated net loss of Ps.103 million was recorded compared to a consolidated Net Profit of

Ps.47 million in 4Q14. The Consolidated Net Income for the full-year decreased by 59.8% YoY, from Ps.371

million in 2014 to Ps.149 million in 2015. The main drivers on the result were a higher allowance for

impairment of loan portfolios* and the depreciation of the Mexican peso against US dollar.

Financial Position Summary

Representative Items 4Q15 4Q14 ∆% Trade Receivables, net 27,139 23,402 16.0%

Trade Receivables, net 22,606 23,402 (3.4%)

Rights to Collect From Related Parties 4,533 - -

Inventory 2,453 2,121 15.6%

Stockholder´s Equity 8,141 10,280 (20.8)%

Trade Receivables

Regarding Trade Receivables account, a miscalculation was identified in the procedure for grouping

certain portfolios in 2015 and prior years that were considered in the valuation and when recording

impairment of the aforementioned portfolios in accordance with IFRS.

As a result, allowance for impairment of loan portfolios and corresponding deferred taxes increased,

decreasing Grupo Famsa´s Stockholders' Equity by Ps.2,100 million. The Company signed an unconditional

payment guarantee agreement with no reservation, for an amount of Ps.5,091 million, which was

considered as Collection Rights from related parties, since it is virtually certain that the collection will be

performed. The present value of the guarantee as of December 31, 2015 was Ps.4,534 million. These

collection rights are classified as non-current assets in the statement of financial position.

As of December 31, 2015, the consolidated balance of Trades Receivables, net of estimates for non-

performing loans, was Ps.27,139 million, 16.0% above year-end 2014. This balance includes Collection

Rights of Ps.4,533 million.

* For more detail, see Notes 2, 5.2.4, and 8 of the audited financial statements for the year 2015.



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

9/14

Debt

Debt & Indebtedness Ratios 4Q15 4Q14 ∆% Net Debt 6,906 5,938 16.3%

Gross Debt 9,101 7,796 16.7%

Interest Coverage Ratio1 2.2 2.1 -

(1) Annual figure

Net Debt as of December 31, 2015 totaled Ps.6,906 million, 16.3% above that of 2014. This increase reflects the effects of the devaluation of the MXP vs. USD, which was partially offset by a higher cash flow generation; reflected in the 18.1% cash rise, increasing from Ps.1,858 million in 4Q14 to Ps.2,194 million in 4Q15. Similarly, the balance of Gross Debt as of year-end 2015, excluding Bank Deposits, grew by 16.7% vs. 2014. The devaluation of the MXP vs. USD was the main driver behind this increase in Gross Debt.

Stockholder´s Equity

As of December 31, 2015, Grupo Famsa´s Stockholder´s Equity was Ps.8,141 million. During 2015 a

miscalculation was identified in the procedure for grouping certain portfolios of that year and of prior

years that were considered in the valuation and when recording impairment of the aforementioned

portfolios in accordance with IFRS. As a result, allowance for impairment of loan portfolios and

corresponding deferred taxes increased, reducing Grupo Famsa´s Stockholders' Equity in net terms by

Ps.2,100 million.

Likewise, such loan portfolios were secured with the support of the controlling shareholder and founder,

who owns approximately 70% of the shareholding of Grupo Famsa, with the dual purpose of maintaining

the value of the business as well as protect the public investors. It is important to mention that Grupo

Famsa continues with the collection efforts of such loan portfolios, and has a period of 18 months starting

22% 23%

17% 20%

61% 57%

4 Q 1 4 4 Q 1 5

Debt Certificates Credit Lines Foreign Debt

2,071

1,256

6 92 92 92 92 222

862

4,241

75

2016 2017 2018 2019 2020 2021 2022

Debt Certificates Credit Lines Foreign Debt



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

10/14

December 31, 2015. In case the guarantee becomes effective, it would not represent a dilution to the

public investors, as the balance of Consolidated Trade Receivables would decrease and an increase in

Grupo Famsa´s cash and / or fixed assets would be recorded. For more detail, see Notes 2, 5.2.4, 8 and

19 of the audited financial statements for the year 2015.

Recent developments

On February 11, 2016, Standard & Poor’s ratified the ´B´ global scale rate of Grupo Famsa, and

improved its outlook from “Negative” to “Stable”.

On January 28, 2016, Grupo Famsa successfully concluded the US$33 million full-payment of its

commercial paper with HSBC Bank PLC, thus reducing the balance of its dollar-denominated debt by

11%. With this transaction, the balance of the Company’s dollar-denominated Gross Debt as of the

date of this report was US$271 million; thus reducing its exposure to foreign exchange rate

fluctuations.

Forward-looking statements

This report 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.



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

11/14

Analyst coverage

Since Grupo Famsa, S.A.B. de C.V. (“Famsa”) securities are subject to the rules and regulations included

in the Reglamento Interior de la Bolsa Mexicana de Valores (Interior Rules and Regulations of the Mexican

Stock Market), the Company would like to inform that, in compliance with that stated in Disposition

4.033.10 of the said Rules and Regulations, the following financial institutions provide formal coverage

over its stock: BBVA Bancomer, Credit Suisse, GBM, Interacciones, Santander and Vector. For further

information on this coverage, please visit www.grupofamsa.com.

Technical Notes and Bases for Consolidation and Presentation

Credit Portfolio: Banco Famsa’s business model focuses largely on Consumer Credit, therefore the weight of such credits in the bank’s portfolio mix differs from that of the standard financial institutions in the Mexican-banking sector. Consequently, Banco Famsa’s results and figures are not directly comparable with those of the aforementioned. Net Financial Expenses: They are primarily comprised of the Financial Expenses corresponding to financing instruments and foreign exchange rate effect. Non-performing Loans Ratio (IMOR): The calculation of IMOR in this Quarterly Report includes “Collection Rights” in Banco Famsa’s total Credit Portfolio. These rights correspond to loans that are discounted via payroll. Due to an accounting reclassification that came into effect in July 2013, they are excluded from the Credit Portfolio used for the calculation of the IMOR indicator for the Mexican National Banking and Securities Commission (CNBV). Percentage rates of change: Percentage rates of change presented in this Report are calculated according to the consolidated financial statements contained herein.

http://www.grupofamsa.com/



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

12/14

Consolidated Financial Statements

Grupo Famsa, S.A.B. de C.V. and subsidiaries Consolidated statements of financial position

Thousands of Mexican Pesos

31-Dec-15 31-Dec-14 ∆$ ∆%AssetsCURRENT ASSETS:

Cash and equivalents $2,194,323 $1,858,271 $336,052 18.1%Trade receivables, net 20,889,791 22,545,028 (1,655,237) (7.3%)Recoverable taxes 953,790 872,492 81,298 9.3%Other accounts receivable 1,845,058 814,091 1,030,967 126.6%Inventories 2,452,557 2,121,313 331,244 15.6%

Total current assets 28,335,519 28,211,195 124,324 0.4%NON-CURRENT ASSETS:

Restricted cash 311,785 311,785 0 -Trade receivables, net 1,715,737 857,288 858,449 100.1%Rights to collect from related parties 4,533,475 - - -Property, leasehold improvements, and furniture & equipment net 2,065,452 2,506,459 (441,007) (17.6%)Goodwill and intangible assets, net 276,933 325,673 (48,740) (15.0%)Guarantee deposits 118,558 107,798 10,760 10.0%Other assets 668,356 496,232 172,124 34.7%Deferred income tax 2,196,445 2,291,167 (94,722) (4.1%)

Total non-current assets 11,886,741 6,896,402 4,990,339 72.4%Total assets $40,222,260 $35,107,597 $5,114,663 14.6%

Liabilities and Stockholders’ equity

CURRENT LIABILITIES:Demand deposits $14,478,945 $10,135,219 $4,343,726 42.9%Short-term debt 4,190,162 3,129,548 1,060,614 33.9%Suppliers 1,627,793 1,305,856 321,937 24.7%Accounts payable and accrued expenses 1,152,717 516,215 636,502 123.3%Deferred income from guarantee sales 206,888 221,868 (14,980) (6.8%)Income tax payable 55,922 24,392 31,530 129.3%

Total current liabilities 21,712,427 15,333,098 6,379,329 41.6%

NON-CURRENT LIABILITIES:Time-deposits 3,879,884 4,616,324 (736,440) (16.0%)Long-term debt 4,910,533 4,666,928 243,605 5.2%Deferred income from guarantee sales 102,672 104,216 (1,544) (1.5%)Deferred income tax 1,353,282 - - -Employee benefits 122,135 106,922 15,213 14.2%

Total non-current liabilities 10,368,506 9,494,390 874,116 9.2%Total liabilities 32,080,933 24,827,488 7,253,445 29.2%Stockholders’ equity: Capital stock 1,704,085 1,709,173 (5,088) (0.3%)

Additional paid-in capital 3,812,903 3,873,961 (61,058) (1.6%)Retained earnings 1,972,385 4,090,052 (2,117,667) (51.8%)Net income 146,970 370,367 (223,397) (60.3%)Reserve for repurchase of shares 233,130 192,426 40,704 21.2%Foreign currency translation adjustment 240,396 14,920 225,476 -

Total stockholders’ equity attributable to shareholders 8,109,869 10,250,899 (2,141,030) (20.9%)Non-controlling interest 31,458 29,210 2,248 7.7%Total stockholders’ equity 8,141,327 10,280,109 (2,138,782) (20.8%)Total liabilities and stockholders’ equity $40,222,260 $35,107,597 $5,114,663 14.6%



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

13/14

Grupo Famsa, S.A.B. de C.V. and subsidiaries

Consolidated statement of income Thousand of Mexican Pesos

4Q15 4Q14 ∆% 2015 2014 ∆%

Total revenues $ 4,755,480 $ 4,391,926 8.3% $ 16,377,080 $14,856,110 10.2%

Cost of sales (3,223,118) (2,552,574) 26.3% (9,322,402) (8,065,116) 15.6%

Gross profit 1,532,362 1,839,352 (16.7%) 7,054,678 6,790,994 3.9%

Selling & administrative expenses (1,391,933) (1,636,346) (14.9%) (5,991,419) (5,816,698) 3.0%

Other Income,Net 5,069 16,044 (68.4%) 61,165 48,582 25.9%

Operating profit 145,498 219,050 (33.6%) 1,124,424 1,022,878 9.9%

Financial expenses (272,365) (305,429) (10.8%) (1,216,645) (907,688) 34.0%

Financial income 2,096 682 207.3% 3,995 1,764 126.5%

Financial expenses, net (270,268) (304,747) (11.3%) (1,212,650) (905,924) 33.9%

Profit before income tax (124,770) (85,697) (45.6%) (88,226) 116,954 (175.4%)

Income tax 21,479 133,162 (83.9%) 237,444 254,405 (6.7%)

Consolidated net income (103,292) 47,465 (317.6%) 149,218 371,359 (59.8%)

Controlling interest (102,412) 48,339 (311.9%) 146,970 370,367 (60.3%)

Non-controlling interest (880) (874) 0.7% 2,248 990 127.1%



Investor Relations

[email protected]

Tel. +52 (81) 8389 – 3400 ext.1419

www.grupofamsa.com

14/14

Grupo Famsa, S.A.B. de C.V. and subsidiaries Consolidated statement of cash flows

Thousands of Mexican Pesos

2015 2014

Operating activities

Profit before income tax (88,226) 116,955

Depreciation and amortization 545,551 419,278

Allowance for doubtful receivables 1,689,702 1,241,556

Loss on sale of property, leasehold improvements, furniture & equipment (53,446) 1,535

Estimated liabilities for labor benefits 19,932 18,722

Interest income (3,995) (1,764)

Interest expenses 1,439,909 1,387,827

Trade receivables (5,581,389) (3,183,391)

Inventories (331,244) 53,160

Other accounts receivable (1,241,882) (93,307)

Suppliers 331,491 (300,539)

Accounts payable and accrued expenses 131,339 (84,126)

Income tax paid (44,294) (49,255)

Demand deposits and time deposits 3,600,874 824,725

Interest to bank depositors (678,651) (698,653)

Exchange gain and losses, net 775,630 425,872

Net cash flows from operating activities 511,301 78,595

Investing activities

Acquisition of property, leasehold improvements, furniture and equipment (255,844) (194,493)

Acquisition of intangible assets (8,710) (16,477)

Proceeds from sale of furniture and equipment 305,890 12,321

Interest received 3,995 1,764

Net cash flow used in investing activities 45,331 (196,885)

Financing activities

Interest paid (734,299) (665,136)

Proceeds from current and non-current debt and bank loans 1,212,865 185,390

Payments of current and non-current debt and bank loans (674,917) (458,226)

Increase of capital stock and additional paid-in capital - 1,476,391

Share repurchase, net (25,442) (67,343)

Net cash flow from financing activities (221,793) 471,076

Increase in net cash and cash equivalents 334,839 352,786

Adjustments to cash flow as a result of changes in exchange rates 1,213 (3,607)

Cash and cash equivalents at the beginning of the period 1,858,271 1,509,092

Cash and cash equivalents at the end of the period 2,194,323 1,858,271

Notes to the Financial Statements: For a greater depth of analysis, we recommend referring to the Notes of our

Financial Statements at www.grupofamsa.com

http://www.grupofamsa.com/

Documents

Earnings Release 4Q15 - investor cloudcdn.investorcloud.net/.../Reportes/2015-4T15-A-En.pdfEarnings Release 4Q15 Paloma E. Arellano Bujanda [email protected] Tel. +52 (81)