CENCOSUD DAY Chile 2014 Corporate Retail Management 09/24/2014

Transcription

1 CENCOSUD DAY Chile 2014 Corporate Retail Management 09/24/2014

2 Agenda Our History: Cencosud Retail Our Present: Our Formats Our Future: Challenging Retail in the Region

3 History of Strong Growth IPO Acceleration of international expansion Consolidation in Chile Opening of first supermarket Cencosud has made acquisitions totaling more than US$ 4.9 billion over the past 6 years In recent years, the company has experienced explosive growth through acquisitions and new store openings (a flexible, agile, aggressive and risk-taking company).

4 Cencosud in the Past Several Years Year 2002 Year 2013 Countries 2 x Retail Format Brands 2 x # of Stores 54 x 20 1,094 Mt 2 (in millions) 0.5 x Revenue (US$ billions) 1.2 x EBITDA (US$ billions) 0.13 x Figures correspond to retail formats only

5 We are working to provide strong support to continue this growth THROUGH OUR EXPANSION PLANS, WE ARE MOVING FORWARD WITH SPEED AND ACCURACY IN: Developing systems, policies and procedures. Transferring and standardizing practices. Leveraging the synergies generated by our scale. Investing in human capital and high-performance teams.

6 Agenda Our History: Cencosud Retail Our Present: Our Formats Our Future: Challenging Retail in the Region

7 Our Retail Formats 5 countries 922 stores 2.3 million mts 2 2,549 avg. mt billion revenue 3 countries 89 stores 757,000 mts 2 8,506 avg. mt billion revenue 2 countries 83 stores 404,000 mts 2 4,869 avg. mt billion revenue Supermarkets Home Improvement Department Stores

8 Supermarkets: Format Strategy Two differentiated offerings throughout the region Formats Service Convenience Chains Sizes Hyper (+ Super) Super (+ Hyper) Value Proposition Greatest selection Best experience #1 in perishables Price Proximity Speed Quality: A non-negotiable commitment Cencosud DNA

9 Supermarkets - Service High-value brands known for their quality and service Leading brands in innovation, product offering and customer experience, such as: Fruits and vegetables Fish Shellfish Bread We utilize a management model based on commitments to our customers. We aspire to be the brand that is most loved and valued by consumers in each market. Shifting to an omnichannel experience. Imported Products Bakery Deepening our leadership in product offering: organic and functional foods. Fully committed to developing the Healthy Eating program by providing education on healthy eating in the region.

10 Supermarkets - Service OUR BAKERY COMMITMENT The healthiest bread in Chile Contains 25% less salt, 0% trans fat and 0% cholesterol. Recognized by the Global Alliance Against Obesity for its contribution to the prevention of cardiovascular illnesses. OUR WINE COMMITMENT The greatest variety of wine You can always find at least 800 different wines OUR CHEESE COMMITMENT If we don t have it, we will get it If you find a cheese at a competitor for which Jumbo does not have an alternative or substitute, we will get it within 24 hours Result: High revenue per mt 2 and highly profitable model. We are leaders of the service model, we know it and do it very well A model that we will continue supporting and growing.

11 Supermarkets - Convenience Local brands with a history linked to their market and people, known for their proximity and convenience Focusing on low prices with the right assortment. Deepening self-service models. Increasing profitability through lower operating costs. Leveraging the low penetration of modern retail and the increase of middle class segments for growth. Enhancing our logistics and supply chain productivity. Simplifying our store operations. Reclustering permanent shops for optimal assortment. All this without ever sacrificing the quality of our products

12 Supermarkets - Convenience Result: - Chains with a close, active and convenient offering they know me, they understand me Higher level of efficiency and competitiveness for the consumer

13 Focus on Supermarkets in Brazil New governance for the consolidation stage Our operations in Brazil are regarded as being in 3 different countries We have appointed a new CEO and a director for each operation: Gbarbosa, Bretas and Prezunic Each operation > $ 1 billion Flexibility and speed for each brand, coordinating and integrating central processes Challenges Consolidate operation of new governance Profitable organic growth Stabilize 100% of operations that have had system changes For each chain: positive SSS in Q and positive EBITDA for FY 2014 Accelerate unique private label brands Help associates feel proud to belong to Cencosud

14 Home Improvement EASY: Brand with a unique business model in all the countries where we operate. Advancing in the development of an omnichannel experience. 3 business segments (retail, professional and wholesale) with high growth potential. ARGENTINA Market leading brand experienced in handling the situation. CHILE Focused on strengthening the purchase experience (service and product availability). We will take advantage of wholesale business opportunities given the market situation. COLOMBIA: Tapping into the growth potential in locations with supermarkets.

15 In Summary GROWTH Supermarkets Service (Pacific Region) París Peru Easy Colombia Digital Business Private Labels Opportunity: STRENGTHENING OF Governance in Brazil Colombia Brand Positioning: Jumbo and Metro Supermarket Offering Convenience Logistics Capabilities Loyalty Program PROFITABILITY Johnson Chile Brazil Supermarkets: Prezunic and Bretas Centralized Purchasing in Commodities and Private Label Brands Negotiation and Planning with Multinational Companies

16 Agenda Our History: Cencosud Retail Our Present: Our Formats Our Future: Challenging Retail in the Region

17 Latin America, the right region Highest GDP increase in the last 30 years. Significant reduction in poverty. More than 80 million new consumers. PPP increased 3.6 times. Life expectancy extended by 6 years. 65% of our business is in food. In this context, where the world is always changing

18 OUR REGION ACCELERATES CHANGE Brands have the power One shopping platform Focusing on goods I need things Blind confidence Consumers have the power Multiple shopping platforms Focusing on the social good I want an experience Distrust of institutions

19 AND THE CONSUMER TOO Excess information but scarce time Empowered and demanding (with voice and vote) Hyperconnected 24/7 (digital natives) Balanced life Natural and healthy diet

20 BRANDS SHOULD CHANGE THEIR PERSPECTIVE

21 ORGANIZATION BRANDS Sustainable Emotional Fast and Innovative Omnichannel Memorable Experience People as the Core of the Organization The Team Above All Customer Intelligence Productivity and Efficiency World Class Latam Player STRATEGIC PILLARS FOR THIS NEW SCENARIO

22 1 SUSTAINABLE BRANDS SUPPLIERS ASSOCIATES CUSTOMERS COMMUNITY ENVIRONMENT THE RESULT IS ECONOMIC VALUE

23 1 SUSTAINABLE BRANDS SUPPLIERS ASSOCIATES CUSTOMERS

24 1 SUSTAINABLE BRANDS COMMUNITY ENVIRONMENT

25 2 TO EMOTIONAL BRANDS ANCHORED TO A PHILOSOPHY THAT ALLOWS US BUILD A BRAND WITH SUPERIOR STATURE

26 2 EMOTIONAL BRANDS

27 3 BRANDS FAST AND INNOVATIVE

28 3 FAST AND INNOVATIVE BRANDS

29 4 WANT OMNICHANNEL ACCESS WHEN AND WHERE CUSTOMERS IT

30 4 Omnichannel Access - Supermarkets WHERE ARE WE TODAY? WHERE WILL BE IN 12 MONTHS? Product Purchase In Store Online Food Online Non-Food Phone Sales In Store Online Food Online Non-Food Phone Sales Online In Store Mobile Customer Standard Customer Standard Payment Store/Cashier Online Store/Cashier Online Online Mobile Store/Cashier Delivery Store Delivery C&C Store Post-Sales Store Store Online What are we working on? Updating and implementing new technology platforms Strengthening business and IT teams Changing and modernizing processes from Brick to Brick & Click

31 4 Omnichannel Access Department Stores Purchase In Store Web Telephone Payment Store/Cashier Online Web Delivery Store Delivery Post-Sales Store Call Center Social Networks Web In Store Telephone Mobile Kiosk Store/Cashier Online Web Online Mobile Store Delivery Pick-Up in Store Pick-Up Point Order Tracking Store Call Center Social Networks Updating and implementing new technology platforms Strengthening business and IT teams Changing and modernizing processes from Brick to Brick & Click

32 5 MEMORABLE EXPERIENCES AT EVERY POINT OF CONTACT Store as a Stage

33 5 MEMORABLE EXPERIENCES Our stores are our stages, where every day we work on surprising our customers. 33

34 6 Strong PEOPLE AS THE CORE OF THE ORGANIZATION culture with a great labor climate.

35 Business Leadership Organizational & Associate Leadership Thought Leadership Results Behavioral Skills 6 PEOPLE AS THE CORE OF THE ORGANIZATION Respect Skills Gestión Performance del Desempeño & Talent Management y Talento Goals / Results 35

36 7 THE IMPORTANCE OF THE TEAM ABOVE ALL

37 7 THE TEAM ABOVE ALL I am very proud to belong to Cencosud. This opportunity is a dream come true. Thanks to Mr. Horst for recognition of all the years of work. For me, this is a family! CHILE

38 8 THROUGH CUSTOMER INTELLIGENCE IN-DEPTH KNOWLEDGE

39 8 CUSTOMER INTELLIGENCE The Best Loyalty Program #1 in Top of Mind Customers > 8,000,000 Redemption > 80% Share of purchases > 80% Includes all formats All payment types Customer/Data Analytics Shopping Baskets Size, amount and frequency Shopping mission Preferences Customer Segmentation Value and loyalty Price and promotions Lifecycle Share of wallet Low price sensitivity CUSTOMER PROFILE Preference for organic fruits and vegetables Frequent buyer at Jumbo A. Las Condes Preferential customer Healthy snacks 36 years Purchases in Umbrale & Umbrale Kids Infrequent buyer at Paris Landscape customer at Easy Family with small children ABC1 Electronics purchase at Paris.cl Decisions/Actions ASSORTMENT LAY OUT PRICING MASS MARKETING AND TARGETED PROMOTIONS BRAND MANAGEMENT STORE PLANNING

40 9 BE PRODUCTIVITY & EFFICIENCY SEXY, KEEP FIT

41 9 PRODUCTIVITY & EFFICIENCY WMS Self-Service Scales Self Checkout / Scanning Production plants / Associate sales trends / Store standardization Logistics and distribution projects / SAP implementation (ERP)

42 10 CAPITALIZING WORLD CLASS LATAM PLAYER ON GLOBAL OPPORTUNITIES

43 10 WORLD CLASS Velocidad LATAM PLAYER, CAPITALIZING e Innovación ON GLOBAL OPPORTUNITIES Multi-Country Sourcing from the East Clothing Decor/Bazaar Home Top 42 FMCG Companies

44 10 WORLD CLASS LATAM PLAYER, CAPITALIZING ON GLOBAL OPPORTUNITIES Private Label (2010) Private Brand (2013) Mega Brand (2016)

45 OUR DREAM Build sustainable brands that emotionally connect with our customers, and by knowing our customers, seek to become their preference over time. To achieve this, we are working hard to develop omnichannel brands, where our stores are the stage, allowing us to generate memorable experiences. Always keeping our people at the core of the organization, they put their talent to use in teams to grow with speed and innovation. Our productivity and service DNA distinguish us as we are: A WORLD CLASS LATAM PLAYER!

46 THIS IS OUR MOMENT THE PROJECT INSPIRES US WE WILL PLAY A LEADING ROLE

47 Thank you!