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Earnings
Presentation
Q1´2014
April 30, 2014
This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities.
This presentation may include forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current
beliefs and expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and
assumptions, including, among other things, general economic, political and business conditions, both in Peru and in Latin America as a whole. The words “believes”, “may”, “will”, “estimates”, “continues”,
“anticipates”, “intends”, “expects”, and similar words are intended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new
information, future events or other factors.
In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Therefore, our actual results could differ substantially from those
anticipated in our forward-looking statements.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a
substitute for the exercise of their own judgment. We and our affiliates, agents, directors, employees and advisors accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or
any part of this material.
This material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent
that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information
in this material.
2
AGENDA
Q1’14 CONSOLIDATED RESULTS
Q1’14 HIGHLIGHTS 01
02
03 FINANCIAL DEBT
01
Q1’14 HIGHLIGHTS
104 118
414
474 488
Q1'13 Q1'14 2012 2013 LTMQ1'14
15 34
218
56 75
Q1'13 Q1'14 2012 2013 LTMQ1'14
1,233 1,406
4,784
5,324 5,498
Q1'13 Q1'14 2012 2013 LTMQ1'14
Margin 4.6% 1.0% 1.2% 2.4%
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2013 Consolidated Results Million Soles (S/. mm)
Q1’14 Highlights Revenues
Margin 8.7% 8.9% 8.5% 8.4% 5
Q1’14 Consolidated Results Million Soles (S/. mm)
01
Adj. EBITDA Net Income
8.9% 1.4%
• 14.1% growth in Revenues
• 6 pharmacies added to the network
• +27k sqm GLA of shopping center expansions
• +4.8% SSS in Supermarkets, +9.3% SSS in
Pharmacies
• 12.8% growth in Adj. EBITDA
• 131.5% growth in Net Income
02
Q1’14 CONSOLIDATED
RESULTS
Supermarkets
Pharmacies
Shopping
Centers
• +40.6% vs. Q1’13
• Expansion of 5 shopping centers in Q1’14 (+7.2%, 27,339 sqm), 124,344
sqm of additional GLA since Q1’13 (+43.7%), total 409,197 sqm (457,287
sqm including related parties’)
• +16.6% vs. Q1’13
• Q1’14 SSS: +9.3%
• 6 pharmacies added to the network in Q1’14, 121 pharmacies since
Q1’13 (+19.8%), total 731 stores
• +11.3% vs. Q1’13
• Q1’14 SSS: +4.8%
• 10 new stores opened since Q1’13 (+9.6%, 21,834 sqm), total 98 stores
(248,609 sqm)
2013 Consolidated Results Million Soles (S/. mm)
Revenues Growth of 14.1% vs Q1’13 Million Soles (S/. mm)
02
Pharmacies
34.1%
Shopping Centers
4.2%
LTM Q1’14 Revenues Breakdown
Revenues
Var%
Q1'13
Supermarkets 869 781 11.3%
Pharmacies 483 415 16.6%
Shopping Centers 67 48 40.6%
Eliminations -13 -10 24.9%
Total revenues 1,406 1,233 14.1%
Q1'14 Q1'13
7
Supermarkets
61.6%
610
636
675
725 731
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
227 227 228
249 249
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
285 304
320
382 409
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Quarterly Openings and SSS by Segment
02
Supermarkets
Sales Area (‘000 sqm)
Shopping Centers
GLA (‘000 sqm)
N° Stores 88 88 90 98
-0.7%
-2.1%
2.1%2.4%
4.8%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
-1.1%
0.4%
4.0%
6.9%
9.3%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Pharmacies
N° Stores
Supermarkets
Pharmacies
Openings Same Store Sales
8
98
Var%
Q1'13
Supermarkets 55 6.3% 45 5.7% 22.2%
Pharmacies 39 8.0% 34 8.3% 12.8%
Shopping Centers 36 54.3% 27 56.2% 35.9%
Eliminations and holding -12 -1 772.7%
Total Adj. EBITDA 118 8.4% 104 8.5% 12.8%
Q1'14 %Rev Q1'13 %Rev
• +35.9% vs. Q1’13
• EBITDA Mg. 54.3% vs. 56.2% in Q1’13
• Higher revenues offet by higher rental, security and property tax
expenses of projects in pre-operational stage
• +12.8% vs. Q1’13
• EBITDA Mg. 8.0% vs. 8.3% in Q1’13
• Higher gross margin due to an increase in penetration of high margin
products offset by higher logistic and warehousing expenses, layoff
expenses related to the shut-down of the old distribution center, and higher
operating expenses due to new stores in early stage of operation
• +22.2% vs. Q1’13
• EBITDA Mg. 6.3% vs. 5.7% in Q1’13
• Lower gross margin due to promotional campaigns offset by store
efficiencies and non-recurring income from the sale of an unused land plot
02
Adjusted EBITDA Growth of 12.8% vs Q1’13 Million Soles (S/. mm)
Supermarkets
Pharmacies
Shopping
Centers
Adj. EBITDA
Shopping Centers
24.7%
Pharmacies
31.6%
LTM Q1’14 Adj. EBITDA Breakdown
Supermarkets
43.7%
9
02
Adjusted EBITDA Evolution Million Soles (S/. mm)
InRetail Consolidated Supermarkets
Pharmacies Shopping Centers
+16% +11%
+0.3% -0.7% +10%
+4% +12%
+22%
+82% +13%
45 42 38
72
45 42 42
81
55
Q1 Q2 Q3 Q4
2012 2013 2014
33 32
37 34 34
36
43 41
39
Q1 Q2 Q3 Q4
2012 2013 2014
17
14
24 24
27 25
26
37 36
Q1 Q2 Q3 Q4
2012 2013 2014
10
94 87
100
128
104 102 111
158
118
Q1 Q2 Q3 Q4
2012 2013 2014
Net Income excluding after-tax forex
and mark-to-market gains:
28 27
127
112 111
Q1'13 Q1'14 2012 2013 LTMQ1'14
15 34
218
56 75
Q1'13 Q1'14 2012 2013 LTMQ1'14
Net Income Increase of 131.5% vs Q1’13
Net Income increase of 131.5% in Q1’14. Net income
decrease of 3.8%, excluding forex and gain in fair value of
investment properties:
Higher depreciation expense due to the new
pharmacy’s distribution center, and new
supermarkets and pharmacies stores
Increase in financial expenses due to additional debt
related to financing our CAPEX
Foreign exchange effects:
Exchange loss of S/. 6 million in Q1’14 vs. loss of S/.
21 million in Q1’13
Higher increase in fair value of investment properties:
Mark-to-market gain of S/. 15 million in Q1’14 vs. S/.
2 million in Q1’13
02
Consolidated Net Income Q1’14 vs Q1’13 Million Soles (S/. mm)
11
Net
Margin 4.6% 1.2% 2.4%
Net Income:
1.0% 1.4%
Net
Margin 2.7% 2.3% 1.9% 2.1% 2.0%
03
FINANCIAL DEBT
13
03
Consolidated Capex and Financial Debt Million Soles (S/. mm)
Capex Financial Debt
5.0x
4.0x 3.6x 3.6x
3.9x
1.3x
2.9x 3.2x
2011 2012 2013 LTMQ1'14
Debt / EBITDA Net Debt / EBITDA
Debt 1,561 1,668
Cash 353 1,125
Net
Debt 1,208 542
1,722
324
1,398
1,773
194
1,580
470
658
1,034
114
2011 2012 2013 Q1'14
For more information please contact:
InRetail Perú Corp.
Gonzalo Rosell, Head of Corporate Finance and IRO
Phone: (511) 618-8000, option 1, ext.55424
www.inretail.pe
