28/10/2010 09:31 skiron\Roadshow\Presentación Roadshow Script 2.ppt
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2
Forward Looking Statements
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 may vary from the results expressed in, or implied by, the forward-
looking statements made to you, possibly to a material degree.
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Agenda
4Operating and Financial Results 3Q10
4Famsa Mexico
4Banco Ahorro Famsa
4Famsa USA
4Consolidated Financial Results 3Q10
4Q & A
4
Executive Summary – 3Q10
1. Famsa Mexico’s sales decelerated temporarily mainly due to the effects of Hurricane ‘Alex’ and heavy rainfall throughout the country (Jul-Aug)
2. Famsa Mexico’s recovery continues gaining strength; demand for core durable good categories is improving (e.g. Furniture, Motorcycles, etc.)
3. Banco Ahorro Famsa maintains a solid capitalization index (>13%), steady deposit growth (Q-o-Q: 6.8%), and low cost of funding (6.3%)
4. During the month of September 2010, Famsa USA achieved positive sales growth for the first time in more than 12 monthsUSA
MX
MX
5
Temporary effects pressured Famsa Mexico’s 3Q10 sales growth, but recovery remains on-track
100% 100%
26.2% 28.3%
10.5% 12.4%
11.8%12.1%
13.1% 10.6%
10.5% 10.5%5.2% 5.9%
22.6% 20.0%
3Q09 3Q10
$8,061$7,693
$2,822$2,816
3Q09 3Q10 Jan-Sep 09 Jan-Sep 10
% o
fSal
es
Peso
s (M
illio
ns)
Total Sales: +4.8%SSS: +5.4%
Total Sales: +0.2%SSS: +0.7%
Famsa Mexico: %Share of Sales by Product Category
Famsa Mexico: Net Sales
Others
Mobile Phones
Personal Loans
Electronics
Appliances
Furniture
Computers
Positive growth categories
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Motorcycles
Famsa MX has successfully reactivated/enhanced demand in core durable good categories
Introduction of proprietary brand: KURAZAISpecialized sales forceAttractive exhibitors (+220 stores)Introductory advertising campaign
3Q10 sales: 1,000 units/month (vs. 190 3Q09)
Furniture
3Q10 sales: first quarterly sales growth since 1Q08
New styles / assortmentAppealing showroom exhibitionTargeted promotions
ComputersSpecialized promoters per brandInteractive exhibitors (+50 stores)Cross-product promotions
3Q10 sales: +10% growth in the last twelve months
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Banco Ahorro Famsa maintains low cost of funding, steady deposit growth, and solid capitalization index
$1,055 $1,496$2,926
$3,601$4,512
$5,644$5,881
$190
$4,664$4,400
$4,030
6.3%6.3%
7.3%
8.1%8.4%
3Q09 4Q09 1Q10 2Q10 3Q10
$8,542
13.5%
123.8%
14.3%
12.5%
Banco Ahorro Famsa
13.0%
114.7%
18.1%
18.1%
Coppel
88.5%
272.4%
8.8%
2.5%
WalMart
113.7%184.2%Consump. “ICOR”(2)
15.1%
6.7%
5.3%
Azteca
Competitors
5.0%Consump. “IMOR”
2.6%Total “IMOR”(1)
17.7%Capitaliz. Index(4)
FinancialSystemIndicator
(a)
(a) $3,890 correspond to time deposits with optional availabilitySource: Banco Ahorro Famsa
Demand deposits Time deposits Financial intermediaries
Average cost of funding
Banco Ahorro Famsa: Total Funding and Average Cost of Funding
Peso
s (M
illio
ns)
Mexico: Financial System Indicators (August 2010)
(1) IMOR: NPLs / Total Loans(2) ICOR: Reserves / NPLs(3) EPRC/CT: Reserves / Total Loans(4) August 2010, except “Financial System” (May-2010)Source: CNBV, www.cnbv.gob.mx
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BAF has made substantial progress incursioning into business financing – MiPYME (Micro, Pequeña y Mediana Empresa)
MiPYME BAF: Advantages
$45
$702
'Dic 2009 'Sep 2010
MiPYME BAF: Accounts Receivable
Credit risk diversification
Supporting productive activities
Enhanced banking value offer
Complementary to consumer financing
MiPYME BAF: Advertising and Stand-alone Banking Branches ( 7 )
Source: Banco Ahorro Famsa
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-30%
-20%
-10%
0%
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Famsa USA: Same store sales growth Famsa USA: Monthly sales growth
Famsa USA reaffirmed its recovery trend; Sept. andfirst half of Oct. achieved positive sales growth
-9.2%
-20%
-10%
0%
10%
'JUL-10 'AUG-10 'SEP-10 'OCT. 15,2010
-24.3%
+5.7%
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$2,397
$3,093
$806$910
3Q09 3Q10 Jan-Sep 09 Jan-Sep 10
100% 100%
33.7%41.5%
39.2% 28.6%
10.8%9.9%
8.3%9.2%
4.3%3.8%
3.7% 7.0%
3Q09 3Q10
% o
f Sal
es
Peso
s (M
illio
ns)
Sales: -11.4% (MXN)Sales: -7.8% (USD)SSS: -9.2% (USD)
Famsa USA: Net Sales
Sales: -22.5% (MXN)Sales: -16.3% (USD)SSS: -17.0% (USD)
Famsa USA: % Share of Sales by Product Category
Electronics
Furniture
Famsa to FamsaAppliances
Others
Computers
Pressure over USA sales is gradually giving way; Furniture is the first core category with 2010 growth
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-0.7%
28151
356407
3Q10
0011
Closures4071Stores
101
Openings
280Banco Ahorro Famsa51Famsa USA
356Famsa Mexico
2Q10
407410
3Q09 3Q10
-0.8%
537.4541.5
3Q09 3Q10
Stores in MX and USA remained unchangedthrough 3Q10; one opening offset by one closure
Num
ber o
f sto
res
M2
(Tho
usan
ds)
Total Stores Total Retail Area
Breakdown of Store Closures and Store Openings (3Q10)
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Agenda
4Operating and Financial Results 3Q10
4Famsa Mexico
4Banco Ahorro Famsa
4Famsa USA
4Consolidated Financial Results 3Q10
4Q & A
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13% 19%19% 18%
22% 18%
12% 12%8% 9%4% 4%
22% 21%
Jan-Sep 09 Jan-Sep 10
% o
f Sal
es
OthersClothingMobile Phones
Electronics
Appliances
FurniturePeso
s (M
illio
ns)
% o
f Sal
es
Personal Loans
Famsa Mexico
Famsa USA
3Q09 3Q10 Jan-Sep 09 Jan-Sep 10
29% 23%
77%71%
Jan-Sep 09 Jan-Sep 10
Consolidated Net Sales Consolidated Product Mix
Famsa USA: Share of Consolidated Net SalesSame Store Sales (%)
Net Sales
MX
USA$3,717 $3,663
$10,772 $10,522
-1.5%
-2.3%
-17.0%-9.2%Famsa USA
+5.4%+0.7%Famsa Mexico
+0.2%-0.6%Total
20103Q10
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$552
$311
$196$199
3Q09 3Q10 Jan-Sep 09 Jan-Sep 103Q09 3Q10 Jan-Sep 09 Jan-Sep 10
+57.9%
Peso
s (M
illio
ns)
$5,387$5,431
$1,935$1,910
3Q09 3Q10 Jan-Sep 09 Jan-Sep 10 3Q09 3Q10 Jan-Sep 09 Jan-Sep 10
MX
USA
-12.2%
Profitability
Gross Income EBITDA
Net IncomeComprehensive Financing Expense
Exchange loss (gain)
Net interestexpense
$190 $300
$906$795
+1.3%
51.4% 52.8% 50.4% 51.2%
-0.8%
+2.2%$471 $481
$1,164$1,156
-0.7%
12.7% 13.1% 10.8% 11.0%
-1.7%
+77.1%
5.4% 5.3% 2.9% 5.2%
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$5,102$3,685
$11,361$8,708
2009 2010
+1.2%
Peso
s (M
illio
ns)
BankDeposits
Net Debt
$2,112$2,086
2009 2010
$2,494
$3,273
$8,542$6,889
2009 2010
$8,860$8,775
2009 2010
BAF
FAMSA
5.8% 6.4% % Uncollectible/ Accounts
Receivable
Main Balance Sheet Accounts
Trade Accounts Receivable Inventories
Net Debt and Bank Deposits Stockholder’s Equity
+9.0%$13,809$15,045
+25.9%
$9,383
$11,815 +1.0%
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Agenda
4Operating and Financial Results 3Q10
4Famsa Mexico
4Banco Ahorro Famsa
4Famsa USA
4Consolidated Financial Results 3Q10
4Q & A