(gigante presentación corporativa ingles 2t15)...grupo prisa’s shares in chile • acquisition of...

28
Corporate Presentation August 2015

Upload: others

Post on 26-Sep-2020

5 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Corporate PresentationAugust 2015

Page 2: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Disclaimer

2

This document contains forward-looking information concerning Grupo Gigante, S.A.B. de C.V., and its subsidiaries, based on

assumptions made by its management. This information as well as the statements regarding future events and expectations are

subject to risks and uncertainties, as well as to factors that could cause that the actual results, performance or achievements of

Grupo Gigante, differ at any time. Such factors includes changes in the economic, political, governmental and/or business

conditions, at a national and/or international level, as well as changes in the interest rates, inflation rates, exchange rate

volatility, commodity prices and energy situation among several others. Because of these risks and factors, the actual results of

Grupo Gigante, could present material variations from the estimates described in this document. Grupo Gigante does not accept

any responsibility for any variations in estimates contained in this document or for information provided by any source other than

Grupo Gigante, including official sources.

Page 3: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Metropolitan Area 42%Central Area

20%

North 4%

North East 12%

South East 9%

South West 4%

Central and South

America 9%

Grupo Gigante At First Glance

• Grupo Gigante, S.A.B. de CV, is a holding company incorporated in

Mexico since 1962

– Our shares trade on the Mexican Stock Exchange since 1991

– Losada Group is the controlling shareholder with a 68% equity

participation

• In 2014 we had 485 units in operation, equivalent to 395,000 m2 of

sales floor and 29,158 seats

• In addition to our business, we have a strong focus on social

responsibility through the Gigante Foundation and the programs of

each company

• We control companies involved in the following segments:

3

Grupo Gigant’s PresenceCompany Overview

Segment Operating Units

Specialized Retail

Restaurants

Real Estate

Presence in 32 states of Mexico and in 8 countries in Central America, the Caribbean and South America

Stores by Region 2014 (1)

(1) Mexico is divided between Metropolitan Area, Central Area, North, North East, South East and South West.

Page 4: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo Gigante – Corporate Structure

4

Specialized Retail Restaurants(4) Real Estate

Total Revenue ’15E Ps.20,987 mm Ps.4,092 mm Ps. 1,586 mm

EBITDA ’15E Ps.1,902 mm Ps.563 mm Ps. 1,000 mm(5)

Total Revenue ’15E Proforma(6) Ps.23,594 mm Ps.4,302 mm --

EBITDA ’15E Proforma(6) Ps.2,101 mm Ps.577 mm --

100% 100% 100%

’15E EBITDA: Ps.3,106 mm (consolidated) (3)

2Q15 Net Debt: Ps. 8,984 mm (1)

Losada Group

76%

14%

7%2% 1%

Revenue Breakdown 2014

68% 32%

Note: Results are distributed individually and have no adjustments for intercompany sales. The estimated numbers include acquisitions from the date of purchase.(1) Total consolidated debt of Grupo Gigante Ps.13,680 mm - cash and short-term investments of Ps.4,696 (2Q15).(2) Petco is a Joint Venture of 50% and its contribution to Grupo Gigante is reflected in the financial statements in joint ventures.(3) Sum of subsidiaries’ EBITDAs is not exactly equal to Grupo Gigante’s consolidated EBITDA due to additional corporate expenses at holding level and other income.(4) Includes SET (“Servicio de Estacionamientos Toks”).(5) Net Operating Income(NOI).(6) The pro forma figures include 12 months of the acquired units. California purchase was completed in March 12, 2015, Prisa on April 29, 2015 and RadioShack Mexico on June 18, 2015.

/

(2)

’15E EBITDA: Ps.3,319 mm (consolidated proforma) (3)(6)

Page 5: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo Gigante – Our Success Story

5

1962The first chain store opens in

Mexico City

1962The first chain store opens in

Mexico City

2009The Home Store starts operations

2009The Home Store starts operations

1991Gigante enters the

Mexican Stock Exchange

becoming a public company

1991Gigante enters the

Mexican Stock Exchange

becoming a public company

2008Gigante Grupo

Inmobiliario starts

operations

2008Gigante Grupo

Inmobiliario starts

operations

1994Partnership is made with Office Depot

Inc.

1994Partnership is made with Office Depot

Inc.

2015• Acquisition of 51% of

Grupo Prisa’s shares in Chile

• Acquisition of Restaurantes California

• Acquisition of the100% of RadioShack México

2015• Acquisition of 51% of

Grupo Prisa’s shares in Chile

• Acquisition of Restaurantes California

• Acquisition of the100% of RadioShack México

1971Toks opens its first restaurant

1971Toks opens its first restaurant

2011 / 2012• The first Panda

Express is inaugurated in Mexico

• Cup Stop starts operations

2011 / 2012• The first Panda

Express is inaugurated in Mexico

• Cup Stop starts operations

2013• Partnership is

made with Petco• Acquisition of

the other 50% of Office Depot Mexico

2013• Partnership is

made with Petco• Acquisition of

the other 50% of Office Depot Mexico

2007Divestment is

approved in the supermarket

business, 205 stores become part of Soriana Stores

2007Divestment is

approved in the supermarket

business, 205 stores become part of Soriana Stores

Page 6: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo GiganteConsolidated

Specialized Retail Segment

Real Estate Segment

Restaurants Segment

Grupo Gigante – Strategy Summary

6

Core Strategies

• Organic and non-organic growth, focusing on cash generation and profitability

• Boost synergies and strengthen technology capabilities, logistics and distribution among all segments and subsidiaries

• “E-commerce” strategy at Group level, using the infrastructure and synergiesbetween subsidiaries

• Continue with our clear dividend policy

• Provide share liquidity

• Execution of the remodeling and reconversion programs

• Identifyin strategic opportunities for the development of new formats

• Internal and external renovation, offeringatmosphere with cutting-edge architectural designs, new dishes and constant service improvements

• Growth and cash flow generation via new real estate projects

• Focus and commitment to efficiency and profitability through sales and income of our developments

• Real estate development, efficient and cost-effective management, reshaping and rethinking our assets and potential in this field

• Leadership consolidation in marketparticipation segments

• Identification and development of new specialized retail formats

• Identifying and developing newJoint Ventures

• Expansion and consolidationinside and outside of Mexico

Page 7: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo Gigante – Evolution Since 2007

7

Total Revenues(Ps. in mm)

In 2007, the Board of Directors approved the divestment of the supermarkets business, 205 stores became part of Soriana stores. Since then, Grupo Gigante has had an excellent performance.

Number of Stores(Units)

CAGR ’07 – ’14: 18.4%

Note: Total Revenues and Number of Stores do not include subsidiaries that have been sold since 2007 (Radioshack and Super Precio).(1) Change in policy mainly due to the accounting effect of the consolidation of Office Depot.(2) LTM as of 2Q!5.(3) Number of stores include units acquired of Restaurantes California, Prisa and Radio Shack.

CAGR ’07 – ’14: 11.0%

Accounting Standard Change to IFRS(1)

(2)

$6,381 $7,631 $8,091 $8,882

$13,575

$18,861 $19,166 $20,814 $21,504

2007 2008 2009 2010 2011 2012 2013 2014 UDM

$ 22,732

234 274 285

323 351

389 428

485 536

2007 2008 2009 2010 2011 2012 2013 2014 1T15

798

2Q15(3)

LTM

Page 8: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo Gigante – 2Q15 Summary

• 19.9% increase in total revenues vs. 2Q14 and same-

store sales increased 5.5%, reflecting the improvement

generated in the global market environment

• 18.1% EBITDA increase vs. the generated in 2Q14

• Addition of 267 units between openings and

acquisitions, reaching 798 units in operation at the end

of 2Q15

• 484,677 m2 of sales floor and 40,848 seats

• 120 properties in operation, with more than 1,500 rental

units

• Over 25,000 employees in all business units

• 2Q15 leverage ratio consolidating all units of the group

is equal to 4.5x EBITDA

• RadioShack México and Prisa in Chile (51%)

acquisition

• Conclution of the acquisition of Restaurantes California

8

2Q15 vs. 2Q14(Ps. in mm)

Metric 2Q15 2Q14 ∆ (%)

Number of Units

798(1) 456(1) 75.0%

Number of Properties(2) 120 120 --

Number of Seats

40,848 26,850 52.1%

Total Revenues

$11,534 $9,616 19.9%

Gross Profit $4,465 $3,860 15.7%

Gross Margin

38.7% 40.1% (1.4 pp.)

EBITDA $1,399 $1,184 18.1%

EBITDA Margin

12.1% 12.3% (.2 pp.)

Net Income $436 $628 (30.6%) (3)

2Q15 Summary

(1) At 2Q15 includes 583 Specialized Retail units and 215 Restaurants; At 2Q14 includes 306 Specialized Retail units and 150 Restaurants.(2) Does not include properties on development (land, construction projects, etc.).(3) Negative effect mainly from the effect of exchange rate and financial costs.

Page 9: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo Gigante – Prospects and Major Plans

9

� Strengthen leadership and market share in participation segments

� Organic and non-organic growth, focusing on cash generation and profitability

� Identifying and exploiting strategic opportunities to develop new formats and business

� “E-commerce” strategy at Group level, using the infrastructure and synergies between subsidiaries and segments

� Focus and commitment to efficiency and profitability, through improved margins, cost reduction, optimization of technology and strengthening of the organization

� Boost synergies and strengthen technology capabilities, logistics and distribution across all segments and subsidiaries

� Continue with our clear dividend policy

� Complete and consolidate corporate restructuring, grouping businesses by specialty

� Focus and commitment to employees, suppliers and customers

� Target leverage of 2.5x – 3.0x at Group level

� Strategy development and execution of our share liquidity

� Maintain our transparent, robust and institutional corporate governance

� Implementation of policies and actions of social responsibility at Group level and subsidiaries

Grupo Gigante has identified a growth plan for the coming years. Below is a summary of the prospects and major plans for 2015 and 2016.

Highlights

Page 10: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Grupo Gigante – 2015 Results Guide

EBITDA(Ps. in mm)

Total Revenues(Ps. in mm)

$2,500

$2,733 $2,843

$3,106

$3,319

2012 2013 2014 2015E 2015E PF

CAGR ’12 – ’14: 5.1%

$18,861 $19,166$20,814

$26,627

$29,444

2012 2013 2014 2015E 2015E PF

CAGR ’12 – ’14: 6.7%

10

Note: The estimated numbers include acquisitions from the date of purchase.(1) The pro forma figures include 12 months of the acquired units. California purchase was completed in March 12, 2015, Prisa on April 29, 2015 and RadioShack Mexico on June 18, 2015.

(1)

(1)

Page 11: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

1. Specialized Retail Segment

Page 12: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Specialized Retail Segment

12

Office Depot de MéxicoShare of sales: 97%

Office Depot de MéxicoShare of sales: 97%

The Home StoreShare of sales: 3%

The Home StoreShare of sales: 3%

PetCoPetCo

• The market leader in office supplies, stationery, furniture and electronic products for office

• Operates stores in 9 countries (Mexico, Colombia, Guatemala, Costa Rica, Panama, El Salvador, Honduras and the Dominican Republic and Chile recently)

• Has ~12 thousand employees

• At the close of 2Q15 it had 565 units

• It began operations in 2009, currently it operates stores in several shopping centers, each with approximately 1,400 m2

• More than 8,000 products, including decorative items, accessories, gifts, furniture and appliances, all to provide a better home environment

• Has ~451 employees

• At the close of 2Q15 it had 18 units(1)

• Grupo Gigante under the Joint Venture scheme with PetCo Animal Supplies Stores Inc. brought in 2013, an innovative concept of pet stores, pet food and accessories

• Petco, began operations in Mexico with the opening of its first store in Zapopan in the month of October of 2013, offering more than 7,000 items in addition to specialized services such as grooming salon, training and a veterinary hospital

• At the close of 2Q15, PetCo had 12 units spread in Nuevo Leon, Jalisco, Queretaroand Mexico City

Units Units

Note: Petco is a Joint Venture of 50% and its contribution to Grupo Gigante is reflected in the financial statements in joint ventures.(1) One of which is currently being renovated because of an accident.

225 241

257 263

302 302

2010 2011 2012 2013 2014 1T152Q15

565

7

11 13

16 16 17

2010 2011 2012 2013 2014 1T152Q15

18

Page 13: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Specialized Retail Segment – Strategy Summary

13

Organic and non-organic, profitable, organized, focused and selective growth

Strategy development and implementation of "e-commerce", leveraging resources, synergies and potentials of all formats and business segments

Consolidation of leadership in segments and market participation

Identification and development of new specialized retail formats

Identification and development of new Joint - Ventures, according to requirements and demands of the Mexican and Latin American consumer

Boost synergies and strengthen capabilities in technology, logistics and distribution

Expansion and consolidation inside and outside Mexico

Focus and commitment to efficiency and profitability, through improved margins, cost reduction, optimization of technology and strengthening of the organization

1

2

3

4

5

6

7

8

Page 14: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Specialized Retail Segment – 2Q15 Summary and Perspectives

• Grupo Gigante, throuh its subsidiary Office Depot, announced the purchase of 51% of Grupo Prisa in Chile

– With this ODM will begin operations in the country

• In March 2015, Grupo Gigante entered into a purchase agreement to acquire 100% of the shares of RadioShack de Mexico, SA de C.V., Retail Answers, S.A. de C.V., and Logistic Answers, S.A. de C.V. The acquisition was completed on June 18, 2015.

• Announcement of the purchase of RadioShack Mexico, 247 stores will adhere to Office Depot de Mexico, which in 2014 generated sales of ~1,747 million pesos

• Control will be taken and will start integration of acquired companies (RadioShack Mexico and Prisa)

• 27 store openings to perform from July 2015 to December 2016 and 21 more considered joint venture (Petco) for the same period

• Consolidation of sales through e-commerce

• Continue with the saturation of markets with different formats of the group

• Expansion in Mexico and other Latin American countries

• Complete coverage of the population pyramid in Mexico

• Commitment to service and quality, seeking mexican and latin american customer satisfaction

• Identification and use of best practices

• Implementation of policies and action of social responsibility actions, including "Green Projects" and environmental protection

14

2Q15 vs. 2Q14(Ps. in mm)

Metrics 2Q15 2Q14 ∆ (%)

Number of Stores 581(1) 306 89.9%

Total Revenues 8,933 7,512 18.9%

EBITDA 785 630 24.6%

EBITDA Margin 8.8% 8.4% 0.4 pp.

2Q15 Summary 2015-2016 Perspectives

(1) Not considering two The Home Store store and 6 PetCo stores.

Page 15: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Specialized Retail Segment – 2015 Results Guide

$15,414 $15,182

$16,351

$20,987

$23,594

2012 2013 2014 2015E 2015E PF

$1,562 $1,618 $1,665

$1,902

$2,101

2012 2013 2014 2015E 2015E PF

Total Revenues(Ps. in mm)

EBITDA(Ps. in mm)

15

CAGR ’12 – ’14: 3.0%

CAGR ’12 – ’14: 3.3%

(1)

(1)

Note: The estimated numbers include acquisitions from the date of purchase.(1) The pro forma figures include 12 months of the acquired units. Prisa purchase was completed on April 29, 2015 and RadioShack Mexico on June 18, 2015.

Page 16: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Prisa and RadioShack México Acquisition Summary

16

• On February 19, 2015, ODM announced the acquisition of 51% of Grupo Prisa

– The transaction officially closed on April 29, 2015

• Leader in the distribution and marketing of office supplies and cleaning equipment in Chile

• In addition Prisa offers logistics and storage for office and cleaning equipment to a select number of institutional clients

• Major clients include Nestle, Walmart Chile, Bechtel, CODELCO, Claro, Pisa, among others

• On March 27, 2015, ODM announced the acquisition of 100% of RadioShack México

– The transaction officially closed on June 18, 2015

• Average store size: ~92 m2

• Purchasing power (~ 68% of RadioShack Mexico suppliers are shared with ODM)

• Significant synergies by consolidating distribution centers and other cost synergies

• Great potential of cross-selling products of ODM

• Incorporation to the ODM store portfolio as “convenience” stores

1992 2008 2015

Begins operations in Mexico through a partnership with

Grupo Gigante

ODM finalizes purchase of

RadioShack Mexico for US$31.5 mm

RadioShack Mexico reaches

200 stores

RadioShack Corp becomes 100% owner of RadioShack Mexico after acquiring the

participation of Grupo Gigante for US$43 mm

RadioShack Corp files for Chapter 11 in

the United States

Key Events

Page 17: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

2. Restaurant Segment

Page 18: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Restaurant Segment

18

Restaurantes ToksShare of sales: 94%

Restaurantes ToksShare of sales: 94%

Panda ExpressShare of sales: 5%

Panda ExpressShare of sales: 5%

Cup StopShare of sales: 1%

Cup StopShare of sales: 1%

• Restaurantes Toks owns a chain of family restaurants that stand out for their innovation in dishes, excellent service and casual atmosphere

• At 2Q15 had 132 Restaurantes Toks, 46 Restaurantes California and 7 Beer Factory units

• Panda Express, asian fast food restaurant

• At 2Q15 had 22 units

• Cup Stop, offers specialty coffee and gourmet foods, began operations in December 2012

• At the close of 2Q15 it had 8 units

91 97 109

121 133

185

2010 2011 2012 2013 2014 1Q152Q15

2

7

20

24 23

2011 2012 2013 2014 1Q15

22

2Q15

Units

Units Units

3

8

10

10

2012 2013 2014 1T152Q15

8

Page 19: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Restaurant Segment – Strategy Summary

19

Organic and non-organic growth above the industry average

Renovations and conversions program execution

Internal and external renovation, offering atmosphere with cutting-edge architectural designs, new dishes and constant service improvements

Identification of strategic opportunities for the development of new formats

Focus on quality and service, warm and efficient

Customer satisfaction, innovating and developing new concepts and always offering fresh food and quality

Focus and commitment to efficiency and profitability, through improved margins and sales cost reduction, optimization of technology and strengthening of the organization

Consolidation and development of "Toks Institute" to strengthen training and career plans at all levels of the organization

1

2

3

4

5

6

7

8

Page 20: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Restaurant Segment – 2Q15 Summary and Perspectives

• In March 2015, Restaurantes Toks acquired all of the shares of Restaurantes California and Beer Factory

• 46 Restaurantes California and 7 Beer Factory units wereincorporated in March.

• Growth of 25.5% and 6% in Total Revenue and Ebitda, respectively.

• The incomes of Restaurantes California is integrated in theconsolidated income of Restaurantes Toks as of April 2015.

• It plans to open 50 units between July 2015 to December 2016

• It will continue with the renovation both internally and external of the units, offering new dishes and constant improvement in service

• Will start the construction of its new distribution center

• Cup Stop will be customized to offer variety of options

• Accelerate the conversion plan of the Restaurantes California’s units

• Implementation of policies and actions of social responsibility, with emphasis on "productive projects" to support the community and those in need

20

2Q15 vs. 2Q14(Ps. in mm)

Metrics 2Q15 2Q14 ∆ (%)

Number of Stores 215(1) 150 43.3%

Total Revenue2) 1,883 1,500 25.5%

EBITDA(2) 246 232 6.0%

EBITDA Margin(2) 13.1% 15.5% (2.4 pp.)

2Q15 Summary 2015-2016 Perspectives

Note: Includes SET (Servicio de Estacionamientos Toks) contribution.(1) Includes 46 Restaurantes California and 7 Beer Factory units.(2) Does not include financial information from California and Beer Factory. Does not consider royalty payments and corporate expenses to Gigante Grupo.

Page 21: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Restaurant Segment – 2015 Results Guide

$2,510

$2,850 $3,142

$4,092 $4,302

2012 2013 2014 2015E 2015E PF

$427

$500$487

$563$577

2012 2013 2014 2015E 2015E PF

Total Revenue (1)

(Ps. in mm)

EBITDA (1)

(Ps. in mm)

21

CAGR ’12 – ’14: 11.9%

CAGR ’12 – ’14: 6.8%

Note: EBITDA does not consider payment of royalties or Grupo Gigante’s corporate expenses. The estimated numbers include acquisitions from the date of purchase.(1) Includes SET (Servicio de Estacionamientos Toks) contribution.(2) The pro forma figures include 12 months of the acquired units. The purchase of California was completed in March 12, 2015.

(2)

(2)

Page 22: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

3. Real Estate Segment

Page 23: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Real Estate Segment

23

• Grupo Gigante capitalizes on the accumulated experience and in 2008 formalized the birth of Gigante Grupo Inmobiliario

• Main business focus is the development and management of real state properties

• Currently the geography of the locations allow it to have presence in more than 25 entities

– Our real estate properties have a total of more than 1,500 commercial premises

– We have a land reserve of 280,000 m2

– We also have more than 3 million m2 of construction and land

• We also participate in the sale of residential units aimed at the medium / high sector

Principales DesarrollosOverview

Distribution

Commercial97%

Offices 3%

Leaseable Area By Sector Properties By Region

Anchor Commercial Partners

Development FormatStart of

OperationLand (m2)

Construction (m2)

Location

Offices 2012 7,277 67,817 D.F.

Commercial 2010 27,657 103,889Estado de

México

Commercial 2010 28,762 59,203Estado de

México

Commercial 2010 16,450 10,362 Acapulco

Commercial 2011 13,685 37,244 Cancún

Commercial 2012 47,662 143,068 Guadalajara

Commercial 2012 31,902 45,866 Zapopan

Mixt 2015 90,811 211,685 Veracruz

Mixt 2016 43,954 535,495 D.F.

Residential 2015 11,466 75,540 D.F.

Central 53%

North East 4%

North 22%

West 18%

South East 3%

(1) Joint Venture project.

(1)

(1)

►Soriana

►Chedraui

►Liverpool

►Cinemex

►Cinépolis

►Coppel

►The Home Depot

►Bodega Aurrera

Page 24: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Real Estate Segment – Strategy Summary

24

Growth through new projects in mixed, commercial and office uses

Real estate development and management, efficient and cost-effective, remodeling and rethinking our assets and potential in this field

Flow generation via new real estate projects

Focus and commitment to efficiency and profitability through sales and lease of our Focus and commitment to efficiency and profitability through sales and lease of our developments and products, as well as cost reduction, optimization of technology and strengthening of the organization

Boost synergies and strengthen capabilities in technology, logistics and distribution

Identification and use of external best practices and within the Group

1

2

3

4

5

6

Page 25: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Real Estate Segment – 2Q15 Summary and Perspectives

• It operates 120 properties in 25 states of Mexico

• It has more than 1,500 rental units

• The two most important projects that GGI is participating are Miyana and Andamar, in Mexico City and in the state of Veracruz, respectively

• Increase of 6.7% and 7.7% in rental income and net operating income, respectively

• Occupancy rate of 97.6%

• We will continue with the successful sale in the various housing developments

• Will seek to grow occupancy rate in malls

• Implementation social responsibility policies and actions, with emphasis on sustainability projects and environmental protection

• Complete the first stage of the Miyana development (the complex includes residential, office and retail)

• We have identified more than 15 developments with great potential

25

2Q15 vs. 2Q14(Ps. in mm)

Metrics 2Q15 2Q14 ∆ (%)

Number of Properties 120(1) 120 --

Occupancy 97.6% 97.5% 0.1 pp.

Rental Income 663 621 6.7%

Net Operating Income 471 437 7.7%

NOI Margin(2) 71.0% 70.4% 0.6 pp.

2Q15 Summary 2015-2016 Perspectives

(1) Does not include properties on development (land, construction projects, etc.).(2) NOI Margin calculated vs Rental Income.

Page 26: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Real Estate Segment – 2015 Results Guide

$1,008

$1,277

$1,386

$1,586

2012 2013 2014 2015E

$685

$832 $886

$1,000

2012 2013 2014 2015E

Total Revenues(Ps. in mm)

Net Operating Income(Ps. in mm)

26

CAGR ’12 – ’14: 17.3%

CAGR ’12 – ’14: 13.7%

Page 27: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

2015 Estiamtes Summary

Grupo Gigante’s 2015 Estimates

Total Revenues EBITDA

2014 2015E 2015E PF(1) %(2) 2014 2015E 2015E PF(1) %(2)

Consolidated 20,814 26,627 29,444 27.9% 2,843 3,106 3,319 9.3%

Specialized Retail

16,351 20,987 23,594 28.4% 1,665 1,902 2,101 14.2%

Restaurants 3,142 4,092 4,302 30.2% 487 563 577 15.6%

Real Estate 1,386 1,586 -- 14.4% 886(3) 1,000(3) -- 12.9%

(Ps. in mm)

27

Nota: Sum of subsidiaries’ Total Revenues and EBITDAs is not exactly equal to Grupo Gigante’s consolidated due to additional corporate expenses and other income at holding level..Nota: The estimated numbers include acquisitions from the date of purchase. (1) The pro forma figures include 12 months of the acquired units. California purchase was completed in March 12, 2015, Prisa on April 29, 2015 and RadioShack Mexico on June 18, 2015.(2) % change between 2014 and 2015E.(3) Net Operating Income (NOI).

Page 28: (Gigante Presentación Corporativa ingles 2T15)...Grupo Prisa’s shares in Chile • Acquisition of Restaurantes California • Acquisition of the100% of RadioShack México 1971 Toks

Information to Investors

28

CORPORATE HEADQUATERSGrupo Gigante, S.A.B. de C.V.Av. Ejército Nacional No. 350,Col. Chapultepec Morales.C.P. 11570,Delegación Miguel Hidalgo,México D.F.Tel.: (52) 55 5269 8000Fax: (52) 55 5269 8169

www.grupogigante.com.mx

CHIEF CORPORATE OFFICERSergio Montero QuerejetaTel. (52) 55 5269 - [email protected]

CORPORATE FINANCE VPArturo Cabrera ValladaresTel. (52) 55 5269 - [email protected]

CEO, FUNDACION GIGANTEJuan Manuel Rosas PérezTel. (52) 55 [email protected]

INVESTOR RELATIONSJorge Hernández TalamantesTel. (52) 55 [email protected]

DEPOSITARY BANKBanco de Nueva York620 Avenue of the AmericasNueva York, N.Y. 10011,USA