Earnings Release 1Q16 Paloma E. Arellano Bujanda Investot Relations [email protected]Tel. +52 (81) 8389 – 3400 ext.1419 www.grupofamsa.com Page 1 of 13 Financial Highlights Consolidated Financial Results 1Q16 1Q15 ∆% Net Sales 3,953 3,530 12.0% Cost of Sales (2,082) (1,816) 14.6% Gross Profit 1,871 1,714 9.2% Operating Expenses (1,606) (1,437) 11.7% Other income, net 26 24 7.9% Operating Profit 291 300 (3.2%) EBITDA 419 421 (0.5%) Net Income 158 93 69.4% Gross Margin 47.3% 48.6% - EBITDA Margin 10.6% 11.9% - Net Margin 4.0% 2.6% - Grupo Famsa posted a 12.0% YoY growth in its Consolidated Total Sales in the first quarter 2016 Consolidated EBITDA remained almost unchanged vs. 1Q15, amounting to Ps.419 million Famsa Mexico’s Total Sales growth trend continued in 1Q16, growing by 10.9% YoY Electronics and Motorcycles’ contribution stands out in the first quarters’ sales mix Expansion in the origination of payroll credit, anticipating a higher participation of clients in the formal economy Banco Famsa’s Non-performing Loans (NPL) Ratio was 8.7% as of March 31, 2016, 460 bps. below than that recorded in 1Q15 (13.3%) Bank Deposits recorded a growth of 20.1% YoY, amounting to Ps.18,611 million as of the end of March 2016 Famsa USA’s Total Sales in MXP increased by 18.9% YoY in 1Q16 EBITDA in MXP went up from Ps.30 million in 1Q15 to Ps.44 million this quarter Monterrey, Mexico, June 17, 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 first quarter 2016. The preliminary, unaudited financial statements presented in this report have been prepared in accordance with IFRS and the interpretations in effect as of March 31, 2016. Figures are expressed in millions of current, nominal Mexican pesos, unless otherwise stated. Famsa Mexico Banco Famsa Famsa USA Grupo Famsa
Finally, Banco Famsa continued to implement its credit portfolio diversification strategy, increasing the
base of productive loans to Ps.4,198 million in 1Q16, 27.7% higher than that of the previous year. The NPL
of its commercial portfolio remained stable at 2.5% as of March 31, 2016.
Famsa USA
During the first quarter of 2016, Famsa USA posted a 3.9% YoY decrease in Same Store Sales (SSS) in USD, as a result of higher competition in the American retail segment. Net Sales for 1Q16 rose by 18.9% in MXP, but fell 3.9% in USD YoY. Excluding the foreign exchange effect, the origination of Personal Loans continued to show strong dynamics, growing by 48.2% YoY, in 1Q16, thus contributing to the Gross Profit Margin expansion of Famsa USA, which combined with the USD appreciation supported a 45.8% EBITDA growth (in MXP)
1,592 1,622 1,751 1,831 2,140
2,998 3,298 3,572 3,456 3,937
10,901 10,787 11,178 13,072 12,542
4.4% 4.4%
4.2%4.1%
4.2%
1Q15 2Q15 3Q15 4Q15 1Q16
Banco Famsa: Bank Deposits
Demand Deposits Time deposits with optional availability
To be Conv. Bches.² 88 0 0 88 102 (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 México, S.A. de C.V. Closures refer to acquired branches converted to banking branches.
Consolidated Financial Statements
Net Sales
Segment Net Sales Same Store Sales (SSS)
1Q16 1Q15 ∆% 1Q16 1Q15 ∆%
Grupo Famsa¹ 3,953 3,530 12.0% 10.7% 6.3% -
Famsa Mexico² 3,364 3,032 10.9% 10.0% 7.5% -
Famsa USA 562 473 18.9% (3.9%) 0.4% -
Others 231 202 14.4% - - -
Intercompany (204) (177) (15.1)% - - - (1) Includes sales of non-retail businesses
(2) Includes Banco Famsa
1Q16 Consolidated Net Sales totaled Ps.3,953 million, rising at a double-digit rate of 12.0% YoY, mostly
due to the continuous improvement of operations in Mexico, driven by advertising campaigns designed
to stimulate the demand for durable goods.
During the quarter, Famsa Mexico posted a 10.9% YoY growth in Total Sales. Additionally, Famsa USA
recorded an 18.9% YoY growth in 1Q16, as a result of higher origination of personal loans and the
depreciation of the MXP vs. the USD.
Similarly, Grupo Famsa’s Consolidated Same Store Sales (SSS) grew by 10.7% YoY, boosted by the 10.0%
YoY growth of Famsa Mexico’s SSS for 1Q16. Famsa USA’s SSS, excluding the foreign exchange effect,
As of March 31, 2016, the consolidated balance of Trades Receivables, including collection rights, was Ps.28,286 million, 4.2% above that of 4Q15. The most important change was recorded in the Consumer Portfolio in Mexico, which grew by 5.7% vs. 4Q15, reaching Ps.16,879 million.
Debt
Debt & Indebtedness Ratios 1Q16 1Q15 ∆%
Net Debt 8,111 6,303 28.7%
Gross Debt 9,289 7,960 16.7%
Interest Coverage Ratio 1 2.1 2.3 -
(1) Annual figure
Net Debt as of March 31, 2016 totaled Ps.8,111 million pesos, 28.7% above that of 1Q15. This increase
reflects the effects of the devaluation of the MXP vs. USD, and a 28.9% decrease in cash and equivalents,
from Ps.1,657 million in 1Q15 to Ps.1,178 million in 1Q16. The decrease in cash and equivalents was driven
by the increase in the origination of commercial and consumer credits.
Similarly, the balance of Gross Debt as of March 31, 2016, excluding Bank Deposits, grew by 16.7% YoY
vs. the same period last year. The devaluation of the MXP vs. USD was the main driver behind this increase
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 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.
