Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — Q1 2020 Earnings Presentation
31 slides from Almacenes Exito SA's earnings presentation, May 12, 2020
Slide 1: 1Q20 Grupo Éxito Financial Results
1Q20 Grupo Éxito Financial Results May 12, 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 for comparison purposes, quarterly 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 subsidiary Gemex O&W S.A.S. (Colombia), a
Slide 3: Agenda
Agenda • 1Q20 Financial and operating highlights • Mitigation strategies to face COVID-19 • Performance by country • 1Q20 Consolidated financial results • Q&A session 3
Slide 4: Financial & Operating Highlights
1Q20 Financial(1) & Operating Highlights Solid top line evolution driven by food retail sales Net Revenue Recurring EBITDA Net Income Margin 1Q20 Highlights +9.7% (+12.0% exc. FX) +2.0% (+4.0% exc. FX) 0.5% (+91 bps vs 1Q19) Corporate Governance Financial Highlights Operating Highlights Investment &
Slide 5: Grupo Éxito mitigation strategies to face COVID-19
Grupo Éxito mitigation strategies to face COVID-19 Activities to grant confidence and support to stakeholders Working towards long-term Health care measures for customers and employees sustainability To guarantee their physical security ✓ Permanent disinfection and cleaning of stores and shopping ca
Slide 6: Grupo Éxito mitigation strategies to face COVID-19
Grupo Éxito mitigation strategies to face COVID-19 Activities to grant confidence and support to stakeholders Supporting Employees Supporting other Stakeholders To guarantee care and job stability A call for solidarity through Fundación Éxito ✓ Hygienic kits delivered to staff ✓ Information and cons
Slide 7: Effect of COVID-19 on 1Q20 Net sales
Effect of COVID-19 on 1Q20 Net sales(1) Contribution to the already positive quarterly net sales trend Grupo Éxito Colombia 4.1% 4.3% Net Sales(1) highlights: 12.0% 9.4% ✓ Stock-up movement started by mid- 7.7% 5.3% March in all countries ✓ Customer preferences towards Net Sales COVID impact Net Sal
Slide 8: Net Sales & SSS Performance: Colombia
1Q20 Net Sales (1) & SSS (1) Performance: Colombia The strongest net sales performance in the last 3 years 1Q20 SM & B2B & SI (2) Other (3) Variations Solid performance driven by: SSS 10.6% 8.8% 16.1% 14.3% 13.3% ✓ Growth of innovative formats (Wow +14.6%, Total 10.4% 8.9% 16.2% 6.8% 21.6% FreshMark
Slide 9: Net Sales & SSS Performance by Segment
1Q20 Net Sales(1) & SSS(1) Performance by Segment Growth in all segments driven by innovation, omnichannel and the food category ▪ Éxito: ✓ Exito WOW posted 14.6% sales growth (vs. 7.2% growth at other Éxito stores) ✓ Sales driven by FMCG, fresh and the electronic categories ✓ Quarterly sales grew i
Slide 10: Innovation in Models & Formats
1Q20 Innovation in Models & Formats Colombia: Innovative commercial strategies ✓ 9 stores YTD ✓ Sales +14.6% (+740 bps vs. other Éxito stores) 32 stores YTD ✓ Sales ✓ 4.0% +13.3% Colombia´s ✓ 17.8% of banner sales share sales share Strong sales growth after conversions Presence in Bogota and the Atl
Slide 11: Relevant apps for the new normal
Relevant apps for the new normal Higher downloads in line with modern omnichannel needs Around Over 74,000 2.4 million orders received Downloads in LTM through the app in 1Q20 4.7 million 85,500 discounts coupons active users of My activated in 1Q20 Discount per day on average Monthly times users 16
Slide 12: Omni-channel Strategy
1Q20 Omni-channel Strategy Solid sales increases (+44.6%) and higher mix on sales (5.2% +132 bps vs 1Q19) A solid platform in Colombia +44.6% sales 1.2 million deliveries (+36% COP 153,000 M vs 1Q19) Ecommerce ✓ +41.0% sales growth ✓ 25.5 M visits Marketplace ✓ 49% GMV(1) growth ✓ 1.1K vendors Omni-
Slide 13: Business Strategy
1Q20 Business Strategy Innovative activities as key drivers for the Company’s growth and SSS protection Contribution per model to quarterly sales growth 4.1% 6.3% 3.1% 1.2% 0.5% +10.4% 0.4% 1.1% 2,914 0.5% 1.4% 6.4% 10.4% 1.4% 2,639 2,669 2,678 2,690 2,722 2,639 1Q19 Éxito Wow Carulla FM SMY Omnicha
Slide 14: Operating Results: Colombia
1Q20 Operating Results: Colombia Solid top line partially offset the effect of COVID-19 on complementary businesses in COP M 1Q20 1Q19 % Var Recurring EBITDA bridge Net Sales 2,913,612 2,638,928 10.4% Other Revenue 137,956 151,948 (9.2%) 6.2 -11.7 183 Net Revenue 3,051,568 2,790,876 9.3% 178 Gross p
Slide 15: Operating Results: Uruguay
1Q20 Operating Results: Uruguay Solid recurring EBITDA margin gains from operating excellence and expense dilution in COP M 1Q20 1Q19 % Var Recurring EBITDA bridge Net Sales 704,000 668,321 5.3% 4.4 80 Other Revenue 6,285 5,435 15.6% 3.0 73 Net Revenue 710,285 673,756 5.4% Gross profit 237,929 233,1
Slide 16: Operating Results: Argentina
1Q20 Operating Results: Argentina Recurring EBITDA margins gains from efficiencies and stronger operating performance in COP M 1Q20 1Q19 % Var Recurring EBITDA bridge Net Sales 282,276 219,880 28.4% Other Revenue 9,254 9,998 (7.4%) 5.2 -1.8 Net Revenue 291,530 229,878 26.8% Gross profit 91,925 74,46
Slide 17: Consolidated Financial Results
1Q20 Consolidated Financial Results Recurring EBITDA grew by 2.0% despite COVID-19 effect in COP M 1Q20 1Q19 % Var Recurring EBITDA bridge Net Sales 3,899,888 3,527,129 10.6% Other Revenue 152,543 166,634 (8.5%) 14.4 -9.2 Net Revenue 4,052,431 3,693,763 9.7% 258 263 Gross Profit 1,001,122 978,662 2.
Slide 18: Group Share Net Result
1Q20 Group Share Net Result Reverted result vs. 1Q19 driven by a resilient operating performance and improved capital structure Highlights • Positive variations in operating performance of international operations and lower financial expenses from an improved capital structure. • Negative variations
Slide 19: Debt and Cash at Holding Level
1Q20 Debt and Cash at Holding(1) Level Improved capital structure and healthy cash position 1,681 494 630 Cash (& other assets) -1,051 Gross debt (financial liabilities & warranties) Net financial debt -3,269 -3,763 1Q19 1Q20 Main highlights Debt at the holding level: ▪ Gross debt reduced by COP $2.
Slide 20: Conclusions
1Q20 Conclusions LatAm Platform ✓ Strong net sales and SSS growth excluding COVID-19 effect in all countries confirmed the trend seen in previous quarters. ✓ Consolidated Recurring EBITDA growth (+2.0%) despite COVID-19 effect on complementary businesses. ✓ Net income boosted by the solid performanc
Slide 21: Appendices
grupo! Appendices 21
Slide 22: Grupo Éxito Strategic Pillars 2020 - 2022
Grupo Éxito Strategic Pillars 2020 - 2022 Leading transformation focusing on customer and retail trends Customer first Our people 3. Digital 4. Best Practices & 5. Sustainable Shared 1. Innovation 2. Omni-channel Transformation Integration Value ▪ Models ▪ E-commerce ▪ Apps ▪ Asset Monetization ▪ Ge
Slide 23: Consolidated Financial Results
1Q20 Consolidated Financial Results Consolidated figures in COP M 1Q20 1Q19 % Var Net Sales 3,899,888 3,527,129 10.6% Other Revenue 152,543 166,634 (8.5%) Net Revenue 4,052,431 3,693,763 9.7% Cost of Sales (3,034,922) (2,702,066) 12.3% Cost D&A (16,387) (13,035) 25.7% Gross Profit 1,001,122 978,662
Slide 24: P&L and CapEx by Country
1Q20 P&L and CapEx by Country Income Statement Colombia Uruguay Argentina Consol in COP M 1Q20 1Q20 1Q20 1Q20 Let Sales 2,913,612 704,000 282,276 3,899,888 Other Revenue 137,956 6,285 9,254 152,543 Net Revenue 3,051,568 710,285 291,530 4,052,431 Cost of Sales (2,364,498) (470,994) (199,521) (3,034,9
Slide 25: Consolidated Balance Sheet
1Q20 Consolidated Balance Sheet in COP M Dec 2019 Mar 2020 Var % in COP M Dec 2019 Mar 2020 Var % Assets 15,861,015 15,865,910 (78.1%) Liabilities 7,416,173 8,231,863 (84.7%) Current assets 5,356,665 5,130,986 (86.6%) Current liabilities 5,906,214 6,459,454 (82.9%) Cash & Cash Equivalents 2,562,674
Slide 26: Consolidated Cash Flow
1Q20 Consolidated Cash Flow in COP M Mar 2020 Mar 2019 Var % Profit 42,388 158,424 (73.2%) Adjustment to reconciliate Net Income 211,121 1,039,376 (79.7%) Cash Net (used in) Operating Activities (1,215,488) (3,607,977) (66.3%) Cash Net (used in) Investment Activities (51,536) (481,225) (89.3%) Cash
Slide 27: Debt by Country and Maturity
1Q20 Debt by Country and Maturity Net debt breakdown by country 31 March 2020, (millions of COP) Colombia Uruguay Argentina Consolidated Short-term debt 971,620 414,721 0 1,386,341 Long-term debt 285,920 - 0 - 285,920 Total gross debt (1) 1,257,540 414,721 0 1,672,261 Cash and cash equivalents 1,748
Slide 28: Holding P&L
1Q20 Holding(1) P&L in COP M 1Q20 1Q19 % Var Net Sales 2,918,803 2,644,631 10.4% Other Revenue 70,484 86,199 (18.2%) Net Revenue 2,989,287 2,730,830 9.5% Cost of Sales (2,363,686) (2,107,524) 12.2% Cost D&A (13,412) (10,852) 23.6% Gross profit 612,189 612,454 (0.0%) Gross M argin 20.5% 22.4% (195) b
Slide 29: Holding Balance Sheet
1Q20 Holding(1) Balance Sheet in COP M Dec 2019 Mar 2020 Var % in COP M Dec 2019 Mar 2020 Var % Assets 13,519,213 13,405,994 (20.8%) Liabilities 6,322,685 7,033,758 (26.1%) Current assets 4,448,466 4,084,880 4.3% Current liabilities 4,847,078 5,294,777 0.2% Cash & Cash Equivalents 2,206,153 1,681,44
Slide 30: Store Number and Sales Area
1Q20 Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 247 624,907 Carulla 96 85,241 Surtimax 80 38,009 Super Inter 69 65,346 Surtimayorista 32 32,349 Total Colombia 524 845,851 Uruguay Devoto 60 39,886 Disco 29 33,452 Geant 2 16,411 Total Uruguay 91 89,749 A
Slide 31: 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