elektra 4q18 eng...5 company profile elektra, banco azteca and italika stores are recognized as...
TRANSCRIPT
March 2019
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The following information contains or may be deemed to contain, “forward-looking
statements” (as defined by the U.S. Private Securities Litigation Reform Act of
1995). 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 the issuer may vary from the results
expressed in, or implied by, the following forward-looking statements, possibly to a
material degree. Grupo Elektra (“Elektra” or the “Company”) undertakes no
obligation to update or revise any forward-looking statements.
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Grupo Elektra in Grupo Salinas
Profile Company
Commercial Business
Financial Business
Financial Overwiew
Agenda
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Grupo Salinas
90,000 direct employees
Presence across the Americas in Mexico, the US, El Salvador, Guatemala, Honduras, Panama and Peru
Consumer finance
and retail
Media Telecommunications Energy,
and other
Social responsibility
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Company Profile
Elektra, Banco Azteca and Italika
stores are recognizedas Socially
ResponsibleCompanies (ESR)**
Elektra, Banco Azteca and Italika
stores are recognizedas Socially
ResponsibleCompanies (ESR)**
elektra.com.mx
The best retaileCommercecompany*
elektra.com.mx
The best retaileCommercecompany*
82,600 direct
employees
82,600 direct
employees
68yearsoffering
consumerloans
Grupo Elektra is the leading financial services company and
specialty retailer in Latin America, and the largest non-bank
provider of cash advance services in the US
Close to seven decades of experience in consumer lending,
helping increase the purchasing power of millions of
families ignored by traditional banking system
Incorporated in the Sustainability Index of the Mexican
Stock Exchange (S&P/BMV IPC Sustentable) since 2013
*http://ecommerceaward.org/los-ganadores-del-ecommerce-award-mexico-2018/
**(ESR®) granted by Centro Mexicano para la Filantropía (Ceme) and Alianza por la Responsabilidad Social Empresarial (AliaRSE)
60% market share in motorcycles in
Mexico
60% market share in motorcycles in
Mexico
+7,200 POS
7 countries in America
+7,200 POS
7 countries in America
2nd largestbank in Mexico, bynumber ofbranches
2nd largestbank in Mexico, bynumber ofbranches
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USA:
2,000USA:
2,000
Mexico:
4,630Mexico:
4,630
Total:
7,269Total:
7,269
Latin
America:
639
Latin
America:
639
Mexico
US
Guatemala
El Salvador
Honduras
Panama
Peru
Presence in America
Points of Contact
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Target Market
*Source: AMAI (Mexican Association of Research Agencies)
. *AMAI estimation based on the data from the national household income and expense poll 2018. Considers cities of 100,000 or more people.
Customer
Profile
Advance America
CustomersU.S. Census 2010
Average Age 43 39
Median Household Income US$49,696 US$50,046
% Homeowners 79% 65%
% With High School Diploma or Higher 96% 85%
Our target market:
66%Of families in Latin
America*
Middle-income
families in the US:
9%
16%
18%
17%
15%
21%
5%
A, B
C+
C
C-
D+
D
E
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Commercial Business
Agenda
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Revenues by category, as of 2018:
Ps.37,989 millions
Mobility
18%
Appliances
14%
Electronics
11%
Money
Transfers
10%
Furniture
7%
Other
7%
Computers
3%
Motorcycles
30%
Commercial Business
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Elektra Store Format
C, D+ socioeconomic segments
1,284 points of contact as of 2018:
1,113 in Mexico and 171 in Latin America
Average store sales floor: 977 m2
15 distribution centers: 9 in Mexico and 6 in
Latin America
New format:
One and two floors
Exhibition and sales floor: 1,500 – 2,000 m2
Parking space: 780 m2
Banco Azteca space: 170 m2:
Seven cashiers
One ATM
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Better Banco Azteca image
Better promotional activity
Exclusive motorcycle models
Better catalogue and customer experience
New Elektra Store Format
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Omnichannel strategy
Focus on the client:
Purchases from any device (cellphone, tablet, computer), by phone or in store
Free delivery to the door or to our stores
Using any form of payment (online and offline), including Credito Elektra from Banco Azteca
400 specialized kiosks in Elektra Stores and iPads in the rest of the POS for the first online experience
Launch of the MarketPlace with a goal to expand the scope of product offering
Elektra USA (www.elektra.com.mx/beneficios-usa) targeting Mexican living in the US
Alliance with Mercado Libre
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Target: C+, C socioeconomic segments
High quality furniture, home
appliances, white line, and high-tech
products
44 points of contact in Mexico
Average store sales floor: 983 m2
Salinas y Rocha Store Format
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60% market share in Mexico
4.4 million motorcycles sold in Mexico, Guatemala,
Peru, Honduras, Panama and Costa Rica
More than 3.3 million motorcycles assembled at
Esamblika due to its capacity to make 1.5 motorcycles a
minute
The facility has five assembly lines with an annual
installed capacity of 635,000 motorcycles
It offers more than 70 models with engines between 80
and 650 cc, including the first electrical powered
“Voltium”
More than 3,600 distribution points: Elektra stores,
Salinas y Rocha, dealers, retail chains and own agencies
More than 700 service centers authorized in Mexico
and more than 190 in Latin America
Italika
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Financial Business
Agenda
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Financial Business
Revenues by category, as of
2018:
Ps.65,533 millions
Loans:
Consumer
Personal
Gold pawn
Commercial
Group Digital banking
Prepaid cards
Debit cards
Investments
Savings
Interest bearing:
Micro insurance:
Life and liability
Retirement fund
administrator
Investment in stocks
Brokerage
Institutional promotion Tax services
Online
Installment
Title
Payday
Loans:
76%19%
3%
1%
1%
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Operates in Mexico, El Salvador, Guatemala,
Honduras, Panama and Peru.
In Mexico we are:
The second largest bank by number of
points of contact
The third one by amount of personal
loans
3,941 points of contact (1,328 inside our
retail stores)
A solid base of deposits with flexible
funding, no commissions, and savings
accounts starting with Ps.1
Digital Banking: Use of products and
payment for services via mobile devices;
3.5 million users
Banco Azteca
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Leading provider of non-bank cash advance
services in the USA, measured by number of stores
2,000 points of contact in 28 states
More than to 8.4 million of loans on a year
Pay day loans:
Average amount: US$379; duration: 20 days
Title loans:
Average amount: US$812; duration: 77 days
Installment loans:
Average amount: US$787; duration: 124 days
Advance America
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Offers liability and life
insurance
Liability insurance covers:
Property
Cars
Motorcycles
Micro insurances in case of
casualty and critical illness:
Accidental death
Breast and cervical
cancer
First heart attack
26 Certificados Bursatiles
issuances and three IPOs:
Pension fund administrator
Assets under management
for Ps.74.4 billion as of 2018
(+28% vs. 2017)
3.3 million of accounts as of
2018 (+46% vs. )
FIBRA HD
FIBRA Plus
CADU
Inmobiliaria
Grupo Diniz
Grupo Elektra
Crediamigo
ConCrédito
Central Leasing
NAFINSA
Exitus Capital
ION
Mas Leasing
Lingo
Other Financial Businesses
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Financial Overview
Agenda
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CAPEX Cash Flow(1)
Historic Consolidated EBITDA Historic Consolidated Revenues
Consolidated EBITDA
Consolidated Revenues
(1) Cash Flow = EBITDA – CAPEX
Consolidated Financial Overview
Ps. millions
$11,526$9,950 $9,479
$10,893$13,998
$16,754$18,150
2012 2013 2014 2015 2016 2017 2018
$69,179 $69,971 $73,629 $74,360$81,242
$94,979$103,522
2012 2013 2014 2015 2016 2017 2018
$3,789$2,954
$2,090 $1,611$2,721
$4,663
$6,675
2012 2013 2014 2015 2016 2017 2018
$7,737 $6,996 $7,389 $9,282
$11,277 $12,091 $11,475
2012 2013 2014 2015 2016 2017 2018
$16,754$18,150
2017 2018
$94,979
2017 2018
+9 %
$103,522
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Demand Deposits Capitalization Index
Delinquency RateGross Loan Portfolio
Banco Azteca Mexico Highlights
6.4%
8.2%9.3%
5.3%
2.6%
4.2%3.5%
2012 2013 2014 2015 2016 2017 2018
12.5% 13.3%14.9%
18.4%
15.3%16.7%
18.2%
2012 2013 2014 2015 2016 2017 2018
$61,467 $62,281 $60,121$53,215
$67,743$76,740 $80,346
2012 2013 2014 2015 2016 2017 2018
$58,272$66,623
$79,685$89,613 $95,387
$108,652
2012 2013 2014 2015 2016 2017 2018
$122,182
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Social
Environmental, Social and Corporate Governance Policies
Elektra and Italika are recognized as "Great Places to Work at“
Elektra, Banco Azteca and Italika stores are recognized as
Socially Responsible Companies
Workforce diversified by gender, age and origin
World Bank study, "From pawnshops to banks. The impact of
formal credit on informal households", determined that Banco
Azteca contributes to the stability of household consumption
in Mexico
12,495,004 children, young people, women, entrepreneurs,
users of financial services, partners and clients of Banco Azteca
benefited from its “Aprende y Crece“ (“Learn and Grow”)
Program in Mexico in 2017
"Learn and Grow" is the only financial education program
certified by the Ministry of Public Education (SEP), the Ministry
of Labor and Social Security (STPS), and the National
Commission for the Protection and Defense of Users of
Services Financial (CONDUSEF)
Guardadito Kids seeks to integrate 100 thousand minors into
the financial system every year
6,240 customers trained with the motorcycle driving course
taught in 5 states in Mexico during 2017
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Environmental
37% of the energy consumed by Grupo Elektra comes
from renewable sources.
The National Commission for the Efficient Use of Energy
(Conuee) recognized Banco Azteca with the award for
Excellence in Energy Efficiency in Buildings.
More than 1.2 million trees planted in 1,147 hectares in
the national reforestation campaign “Un Nuevo Bosque”
(“The New Forest”), with the participation of 120
thousand volunteers.
Corporate Governance
Grupo Elektra received the "Recognition of the Best
Corporate Governance in Mexico“ award*.
The Corporate Reputation Business Monitor (MERCO)
recognized Banco Azteca as one of the 100 entities with
the best reputation in Mexico.
Banco Azteca and CONDUSEF entered into a
collaboration agreement for the benefit of users.
*http://cfi.co/awards/latin-america/2017/grupo-elektra-best-corporate-governance-mexico-2016/
Environmental, Social and Corporate Governance Policies
Banco Azteca – Award in
Excellence in Enery Efficiency
Grupo Elektra – Recognition of the
Best Corporate Governance in México
March 2019