Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Q3 2020 Earnings Presentation
30 slides from Almacenes Exito Sa's earnings presentation, Oct 29, 2020
Slide 1: 3Q20 Grupo Éxito Financial Results
3Q20 Grupo Éxito Financial Results October 29, 2020 “The Issuers Recognition -IR granted by the Colombian Stock Exchange is not a certification about the quality of the securities listed at the BVC nor the solvency of the issuer”.
Slide 2: Note on Forward Looking Statements
Note on Forward Looking Statements Please note that 3Q19 and 9M19 consolidated results included the Brazilian segment (Companhia Brasileira de Distribuição – CBD, Segisor S.A.S. and Wilkes Partipações S.A., sold on November 27, 2019; and Via Varejo S.A. sold on June, 2019) and subsidiary Gemex O&W S
Slide 3: Agenda
Agenda • 3Q20 Financial and Operating highlights • Performance by country • 3Q20 Consolidated Financial Results • Q&A session 3
Slide 4: Consolidated Financial & Operating Highlights
3Q20 Consolidated Financial(1) & Operating Highlights Retail continued benefited by innovation and strong omnichannel performance SSS Net Income growth Omnichannel growth 3Q20 Highlights +2.3% (exc. FX & CE) 4.7x (3.0x Consol) Corporate Governance Financial Highlights Operating Highlights Investment
Slide 5: 3Q/9M20 Net Sales & SSS Performance: Colombia
3Q/9M20 Net Sales(1) & SSS(1) Performance: Colombia Omnichannel and innovative model's performance offset by the impact of mobility restrictions 3Q20 9M20 SM & B2B & SM & B2B & SI (2) Other (3) SI (2) Other (3) Variations SSS -0.4% -0.2% 9.9% -7.1% -19.0% 4.9% 3.7% 14.9% 3.8% -4.9% Total -0.3% -0.6%
Slide 6: Net Sales & SSS Performance by Segment: Colombia
3Q20 Net Sales(1) & SSS(1) Performance by Segment: Colombia Premium banner Carulla led sales growth boosted by the omni-channel strategy Éxito: ▪ Éxito WOW grew sales above other Éxito stores by 14.9 p.p. ▪ Electronics grew by low double-digit (+649 bps on sales share vs. 3Q19) ▪ Outcome affected by
Slide 7: Innovation in Models & Formats: Colombia
3Q20 Innovation in Models & Formats: Colombia Innovative models support sales growth with a wide omnichannel proposition Best wholesales price The best merge of the digital and the Shopping experience and greater freshness physical worlds ▪ 2 stores opened; 34 stores YTD (3.8% ▪ 2 stores opened, 11
Slide 8: Omni-channel Strategy: Colombia
3Q20 Omni-channel Strategy: Colombia The strongest quarterly sales growth (3.5x) and record of sales levels YTD (over 1 billion COP) Total Sales Share on sales Deliveries 3Q20 Highlights COP $490,624 M (+3.5x) 18.2% 2.6 M (2x) Strong omnichannel food sales (COP $231K M, +3.1x) and non-food (COP$260K
Slide 9: Apps complementing on-line initiatives: Colombia
Apps complementing on-line initiatives: Colombia +420 K downloads in 3Q20, a new version launched for Éxito improved historical trends Re-launch of the Éxito app ✓ Improved usage and integration with Puntos Colombia and TUYA ✓ Personalized lists and discounts Increased relevance of the food category
Slide 10: Apps complementing on-line initiatives: Colombia
Apps complementing on-line initiatives: Colombia Éxito and Carulla apps ranked 2nd in terms of downloads Éxito.com, the most searched e-commerce website in Éxito and Carulla ranked 2nd as the most downloaded the country apps for online food shopping in 2020 in the country YOY Aug Sep Oct Nov Dec Jan
Slide 11: Traffic Monetization – Puntos Colombia
Traffic Monetization – Puntos Colombia Over 25% clients with habeas data and 21 new allies (vs. 4Q19) 96 top retail allies Marketplace in gastronomy and services 35K clients 4.4 M clients (+108% vs. 2Q) with Habeas Data Over 1 M clients´redemptions (+6.2% vs. 3Q19) Positive EBITDA 91% share redempti
Slide 12: Business Strategy: Colombia
3Q20 Business Strategy: Colombia Omni-channel strategy as differentiator to face changing market conditions 4.3% 3.2% 0.9% 0.8% -0.7% -3.8% -0.8% -1.5% -0.9% 12.1% -10.0% -0.3% -0.3% 2,673 2,673 2,698 2,703 2,703 2,687 2,665 2,665 3Q19 Éxito Wow Carulla FM SMY E-commerce Restrictions Others 3Q20 P
Slide 13: 3Q/9M20 Operating Results: Colombia
3Q/9M20 Operating Results: Colombia Operating performance (+110 bps) offset by COVID-19 effect on TUYA and real estate in COP M 3Q20 3Q19 % Var 9M20 9M19 % Var Recurring EBITDA Bridge(1) Net Sales 2,665,349 2,673,127 (0.3%) 8,312,024 7,922,962 4.9% Other Revenue 122,829 184,834 (33.5%) 381,177 497,7
Slide 14: 3Q/9M20 Operating Results: Uruguay
3Q/9M20 Operating Results: Uruguay Top line growth and expense control favoured Recurring EBITDA margin gains (+88 bps) in COP M 3Q20 3Q19 % Var 9M20 9M19 % Var Net Sales 622,176 598,234 4.0% 1,967,844 1,855,857 6.0% Other Revenue 6,303 6,638 (5.0%) 18,646 17,419 7.0% Net Revenue 628,479 604,872 3.9
Slide 15: 3Q/9M20 Operating Results: Argentina
3Q/9M20 Operating Results: Argentina Positive EBITDA and favourable cash position to face the challenging context in COP M 3Q20 3Q19 % Var 9M20 9M19 % Var Recurring EBITDA Bridge (3) Net Sales 222,414 156,616 42.0% 690,015 648,187 6.5% Other Revenue 13,267 9,002 47.4% 23,784 32,389 (26.6%) Net Reven
Slide 16: 3Q/9M20 Consolidated Financial Results
3Q/9M20 Consolidated Financial Results Net income grew by 4.7x from a leaner structure in COP M 3Q20 3Q19 % Var 9M20 9M19 % Var Net Sales 3,507,629 3,424,872 10,967,573 10,423,901 2.4% 5.2% Recurring EBITDA Bridge(1) Other Revenue 142,310 199,597 (28.7%) 423,253 544,654 (22.3%) Net Revenue 3,649,939
Slide 17: Group Share Net Result
3Q20 Group Share Net Result Net Income grew by 4.7x from improved capital structure, associates and Uruguay performance Highlights • Lower financial expenditure from an improved capital structure, Uruguay performance and positive contribution from associates (mainly TUYA, which absence of royalties
Slide 18: Debt and Cash at Holding Level
3Q20 Debt and Cash at Holding(1) Level An improved debt and cash position Data in billion COP Main highlights NDF and gross debt at the holding level: ▪ Cash position increased COP $168,000 M and NFD improved by COP $ 2.7 B compared to the 3Q19. It is noteworthy that NFD improved by COP $ 2.5 B COP
Slide 19: Conclusions
3Q20 Conclusions LatAm platform ▪ Focus on profitable expansion in omnichannel and innovative models, have allowed SSS expansion YTD amidst mobility restrictions and macro headwinds across the region. ▪ Expenses growing below sales growth across operations from the consistency of the operating excel
Slide 20: Appendices
grupo! Appendices 20
Slide 21: Grupo Éxito Strategic Pillars 2020 - 2022
Grupo Éxito Strategic Pillars 2020 - 2022 Leading transformation focusing on customer and retail trends Customer first Our people 4. Best Practices & 5. Sustainable Shared 1. Innovation 2. Omni-channel 3. Digital Transformation Integration Value ▪ Models ▪ E-commerce ▪ Apps ▪ Asset Monetization ▪ Ge
Slide 22: 3Q/9M20 Consolidated Financial Results
3Q/9M20 Consolidated Financial Results Consolidated figures in COP M 3Q20 3Q19 % Var 9M20 9M19 % Var Net Sales 3,507,629 3,424,872 2.4% 10,967,573 10,423,901 5.2% Other Revenue 142,310 199,597 (28.7%) 423,253 544,654 (22.3%) Net Revenue 3,649,939 3,624,469 0.7% 11,390,826 10,968,555 3.8% Cost of Sal
Slide 23: P&L and Capex by Country
3Q20 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M 3Q20 3Q20 3Q20 3Q20 Net Sales 2,665,349 622,176 222,414 3,507,629 Other Revenue 122,829 6,303 13,267 142,310 Net Revenue 2,788,178 628,479 235,681 3,649,939 Cost of Sales (2,152,203) (418,347) (156,339) (2,724,
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2019 Sep 2020 Var % in COP M Dec 2019 Sep 2020 Var % Assets 15,861,015 14,764,732 (6.9% ) Liabilities 7,416,173 7,140,997 (3.7% ) Current assets 5,356,665 4,027,399 (24.8% ) Current liabilities 5,906,214 5,233,684 (11.4% ) Cash & Cash Equivalents 2,562,674 1,0
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow in COP M Sep 2020 Sep 2019 Var % Profit 160,634 815,458 (80.3% ) Adjustment to reconciliate Net Income 624,390 2,599,021 (76.0%) Cash Net (used in) Operating Activities (1,229,289) (2,252,534) (45.4%) Cash Net (used in) Investment Activities (187,072) (36,108) N/A Cash net pro
Slide 26: Debt by Country and Maturity
3Q20 Debt by Country and Maturity Net debt breakdown by country 30 Sep 2020, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 1,078,670 1,100,681 413,283 21,614 1,535,578 Long-term debt 338,399 357,358 - 0 - 357,358 Total gross debt (1) 1,417,069 1,458,039 413,28
Slide 27: 3Q/9M20 Holding P&L
3Q/9M20 Holding(1) P&L in COP M 3Q20 3Q19 % Var 9M20 9M19 % Var Net Sales 2,666,251 2,675,083 (0.3%) 8,319,992 7,934,566 4.9% Other Revenue 80,292 116,049 (30.8%) 214,865 293,652 (26.8%) Net Revenue 2,746,543 2,791,132 (1.6% ) 8,534,857 8,228,218 3.7% Cost of Sales (2,149,690) (2,179,675) (1.4%) (6,
Slide 28: Holding Balance Sheet
Holding(1) Balance Sheet in COP M Dec 2019 Sep 2020 Var % in COP M Dec 2019 Sep 2020 Var % Assets 13,519,213 12,747,543 (5.7% ) Liabilities 6,322,685 6,423,178 1.6% Current assets 4,448,466 3,030,347 (31.9% ) Current liabilities 4,847,078 4,158,067 (14.2% ) Cash & Cash Equivalents 2,206,153 712,291
Slide 29: Store Number and Sales Area
3Q20 Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 242 620,064 Carulla 96 85,686 Surtimax 74 34,271 Super Inter 69 65,557 Surtimayorista 34 33,621 Total Colombia 515 839,199 Uruguay Devoto 59 40,127 Disco 29 33,452 Geant 2 16,411 Total Uruguay 90 89,990 A
Slide 30: Investor Relations Contact
María Fernanda Moreno R. Investor Relations Director +574 6049696 Ext 306560 maria.morenorodriguez@grupo-Éxito.com Cr 48 No. 32B Sur – 139, Av. Las Vegas Envigado, Colombia www.grupoÉxito.com.co Éxitoinvestor.relations@grupo-Éxito.com •“The Issuers Recognition -IR granted by the Colombian Stock Exch