26/10/07 10:40 skiron\Roadshow\Presentación Roadshow Script 2.ppt 1
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Agenda
BU Operating and Financial Results 3Q07
Consolidated Financial Results 3Q07
Q & A
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Grupo Famsa’s consolidated Net Sales and EBITDA continue growing
Consolidated Net Sales Consolidated EBITDA
$326 $325
$1,012$1,087
3Q06 3Q07 2006 2007
Note: Constant pesos, Sep07 (Millions)
-0.1%
+7.4%
10.8% 9.8% 11.4% 11.1%
$3,021 $3,322
$8,846$9,761
3Q06 3Q07 2006 2007
+9.9%
+10.3%Same Store Sales 3Q07
-3.3%
Same Store Sales 2007
-0.4%
Same Store Sales (SSS): Decrease in Mexico, Increase in the United States
% EBITDA / Sales: Pressured by expenses ralated to Banco Ahorro Famsa (~1% of sales 3Q07), New store openings, and Same store sales in Mexico
Grupo Famsa’s three business units1. Famsa Mexico 2. Famsa Inc. (USA) 3. Banco Ahorro Famsa
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Year-to-date, we have opened 36 new stores and 63 banking branches
335382
3Q06 3Q07
+14.0%
(1) 12 of the 15 new stores opened so far in the United States correspond to the acquisition of La Canasta(2) Personal Loan Booths will be gradually substituted by banking branches as the implementation of the bank progresses
Total Stores(47 new stores in the last twelve months)
+21.8%
Selling Area (Square Meters)(86,100M2 added in the last 12 months)
Num
ber o
f Sto
res
M2 (
Thou
sand
s)63
15
21Jan-Sep 07
54Personal Loan Booths2
6318Banking Branches
391United States1
3437MexicoTotal3T07
Breakdown: Store and Bank openings 2007
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Sales in Mexico grew moderately due to a generalized slowdown in consumer spending
…mainly due to a decrease in Electronics, Furniture and Seasonal Products…
Net Sales1 in Mexico grew 1.2%…
+1.2%
Peso
s Se
p07
(Mill
ions
)
+4.0%
% o
f Sal
es
OtrosSeasonal (-0.4)ClothingCellular Phones
Electronics (-2.4)
White Goods
Furniture (-0.7)
100% 100%
SSS 3Q07 -7.3%
…caused by a slowdown in consumer spending that has impacted traffic, average sales ticket and cash sales especially in the larger metropolitan areas
1 2
3
SSS 2007 -2.4%
(1) Retail sales, does not include Mayoramsa
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Despite the current situation in Mexico, Grupo Famsa is committed to its growth plan
SoutheastMINATITLAN, VER.
CenterGUADALAJARA, JAL.
CenterPUEBLA, PUE.
CenterLEON, GTO.
NortheastCD VICTORIA, TAMPS.
NorthSALTILLO, COAH.
NorthMONTERREY, N.L.
RegionCity
7 new store locations 3Q07Mexico
Grupo Famsa continues strengthening its position in Mexico in order to obtain significant growth and gain substantial market share, in both its commercial and banking
businesses, as soon as consumer spedning shows some signs of recovery.
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Our operations in the United States keep delivering extraordinary results
Net Sales in the US grew more than 60%…
+62.0%
Peso
s Se
p07
(Tho
usan
ds) +48.9%
…achieving economies of scale that consistently improve our EBITDA margin
% E
BIT
DA
/ Sal
es
Other Developments: United States 3Q07 La Cansata integration: Concluded successfully the integration of 12 stores One new store: Mesa, Arizona Brand Awareness: Increased brand awareness in our current markets
1 2
SSS 3Q07 +13.9%
SSS Accum +13.6%
% FamsaTo
Famsa10.4% 7.8% 13.5% 9.8%
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12717710770TOTAL
41140Monterrey26260Noreste21210GDL, SLP, QRO13130Chihuahua10100Centro927Torreón541Coahuila
31Golfo16Baja California15Centro Sur15Sonora11Occidente
523022México DF
Openings 2008
New Openings 2007 Total 2007
Openings to date (Oct
2007)
Banco Ahorro Famsa will open 177 banking branches by year-end
Breakdown of Banco Ahorro Famsa branch openings
304 Banking Branches
9(1) Figures as of September 30, 2007
Our bank has deposits for more than $130M and has allocated almost $90M in personal loans
$2,702 $133,076,729 49,246 TOTALTotal Deposits Average BalanceAccounts
Deposits: Banco Ahorro Famsa1
Allocation: Banco Ahorro Famsa1
$89,974,000
Total Allocation
$6,064
Average Loan
45% 17,125 37,755
% AuthorizedAuthorized RequestsTotal Requests
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Current cost of debt FAMSA:
9.5%
The average cost of funding for Banco Ahorro Famsa has decreased to 5.4%
CNBV: Average Cost of Funding (March / June 2007)
Given the company´s current net debt ($5,175), each percentage point reduction in the cost of funding translates into annual savings of roughly $52 million pesos.
Industry Averages
MarchJune
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Agenda
BU Operating and Financial Results 3Q07
Consolidated Financial Results 3Q07
Q & A
12
Net Sales
13.6%3.6%13.9%9.3%United States-2.4%4.1%-7.3%4.8%Mexico
SSS
10.3%12.4%9.9%12.7%Net Sales200720063T073T06
Accumulated
Consolidated Net Sales
+9.9%
Peso
s Se
p07
(Mill
ions
)
+10.3%
% o
f Sal
es
Other
SeasonalClothingCellular Phones
Electronics
White Goods
Furniture
100% 100%
Famsa-to-Famsa
Consolidated Product Mix
Net Sales: Share by Country 3Q07(% of retail sales)
Breakdown: Net Sales Growth
Mexico78.3%
USA21.7%
Note: Constant pesos, Sep07 (Millions)
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Credit Sales
Credit Sales1 % Credit Sales over Consolidated Net Sales1
Peso
s Se
p07
(Mill
ions
)
+15.6%
+16.9%
(1) Retail sales, does not include MayoramsaNote: Constant pesos, Sep07 (Millions)
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Margins
Gross Margin EBITDA
Comprehensive Financing Expense Net Income
+14.7%
+27.5%
-0.1%
+48.1%
+14.1%
+16.8%
+7.4%
+32.3%
43.3% 44.9% 43.8% 45.6% 10.8% 9.8% 11.4% 11.1%
4.8% 5.5% 4.7% 5.0% 2.2% 2.9% 3.0% 3.6%
Note: Constant pesos, Sep07 (Millions)
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Main Balance Sheet Accounts
Trade Accounts Receivable Inventories
Net Debt Stockholder’s Equity
+25.1%
+48.4%
+9.7%
+9.4%
2.73% 3.18%% Write-off over Credit
Sales
Note: Constant pesos, Sep07 (Millions)
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Agenda
BU Operating and Financial Results 3Q07
Consolidated Financial Results 3Q07
Q & A