Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — Q2 2022 Earnings Presentation
35 slides from Almacenes Exito SA's earnings presentation, Jul 28, 2022
Slide 1: 2Q22 Grupo Éxito Financial Results
July 28, 2022 2Q22 Grupo Éxito Financial Results “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 This document contains certain forward-looking statements based on data, assumptions and estimates, that the Company believes are reasonable; however, it is not historical data and should not be interpreted as guarantee of its future occurrence. Grupo Éxito operate
Slide 3: Agenda
Agenda • Financial and operating highlights • Performance by country • Consolidated financial results • Q&A session 3
Slide 4: 2Q22 Consolidated financial & operating highlights
2Q22 Consolidated financial(1) & operating highlights Boosted top line (+27.6%) and operating efficiencies despite inflationary pressures, favoured Recurrent EBITDA (+21%) and net income (22.7%) growths 2Q22 Net Sales Recurrent EBITDA +21%, 7.9% margin Net Income Highlights +28.1% SSS(2) +27.9% (+30
Slide 5: ESG Strategy Follow-up as of 1H22
ESG Strategy Follow-up as of 1H22 ESG initiatives to generate value: economic growth, social development and environmental protection Zero malnutrition My planet Sustainable trade • 36,184 children benefited from • 312,000 trees donated by • 90.6% of fruit and vegetables nutrition and complementary
Slide 6: 2Q22 Net Sales & SSS performance in Colombia
2Q22 Net Sales & SSS performance in Colombia A solid 29.9% SSS(1) growth, above CPI of 9.67%, from boosted commercial performance, volume gains (+7%) and omni-channel growth (+26.7%) 2Q22 1H22 Low- Low-cost cost & & Other (2) Other (2) Variations Total 27.0% 34.0% 20.8% 7.4% 23.9% 26.8% 17.9% 17.3%
Slide 7: 2Q22 Performance by segment
2Q22 Performance by segment Remarkable performance in sales and SSS (1) reflected boosted commercial dynamism and contribution from innovation Éxito: Carulla: Low-cost & Other(2): • Sales +34%, SSS +34.8% grew 14.4 p.p. • Sales +20.8%, SSS +21.4% grew 5.8 p.p. • Sales +7.4% (despite the $56.3K M sal
Slide 8: Innovation in models & formats as of 1H22
Innovation in models & formats as of 1H22 Share on Colombia sales from innovation in models and formats reached 35.4% Total banner 213 101 60 41 stores Total stores of new 41 (+4 QoQ) model/format 20 (+1 QoQ) 22 29 (+4 QoQ) 5y expansion & +31 Full / +99 Econo +16 full / +42 Midi +36 +71 conversion p
Slide 9: 2Q22 Omni-channel follow-up
2Q22 Omni-channel(1) follow-up Strong growth in sales (+26.7%) and in orders (+46%) Total Sales Share on sales(2) Orders 2Q22 Highlights 3.1 M (+46%) MCOP $426K (+26.7%) 12.4% (vs 11.8% 1Q22) Food: Non-food: • Sales +18% • Sales +40% • 10.4% share on sales • 16.4% share on sales Omni-channel highlig
Slide 10: 1H22 Omni-channel follow-up
1H22 Omni-channel(1) follow-up Strong growth in sales (+ 17%) and in orders (+36.2%) Total Sales Share on sales(2) Orders 1H22 Highlights MCOP $822K (+17%) 12.1% 5.7 M (+36.2%) E-commerce Apps • 788k active downloads • COP $241 K M in sales (+17%) • 78 M visits (+11%) • +43% orders in Éxito app • 44
Slide 11: 1H22 Asset and Traffic Monetization
1H22 Asset and Traffic Monetization Boosted commercial dynamism strengthened financial retail and the loyalty coalition Financial Retail Puntos Colombia • 352,000 cards issued (+108%) • 2.6 M cards in stock • Loan portfolio of COP $4.4 B (+48%) ✓ 135 allied brands • Lower NPL 30 levels (mid single-d
Slide 12: Asset and Traffic Monetization
Asset and Traffic Monetization Real Estate: a hidden value to the Company´s share valuation Real Estate Business V i v a M a l l s (1) The most important complementary business and 18 assets and 568k of GLA through the investment contributor to margins vehicle in COP M 1H22 1H21 % Var FY 2021 Occupa
Slide 13: 2Q22 Operating Results: Colombia
2Q22 Operating Results: Colombia Solid top line growth (26.3%) favoured expense dilution and Recurring EBITDA growth (+29.2% when adjusting development fees of real estate and property sale) in COP M 2Q22 2Q21 % Var 1H22 1H21 % Var Net Sales 3,384,527 2,664,586 27.0% 6,703,692 5,411,246 23.9% Other
Slide 14: 2Q22 Operating Results: Uruguay
2Q22 Operating Results: Uruguay Positive FX effect and cost efficiencies led to Recurring EBITDA margin gains in COP M 2Q22 2Q21 % Var 1H22 1H21 % Var Net Sales 771,878 625,980 23.3% 1,533,098 1,251,242 22.5% Other Revenue 6,931 6,600 5.0% 13,728 12,124 13.2% Net Revenue 778,809 632,580 23.1% 1,546,
Slide 15: 2Q22 Operating Results: Argentina
2Q22 Operating Results: Argentina Net sales (1,2) grew above inflation (+1,584 bps) and improved real estate income led to remarkable Recurring EBITDA margin gains (+210 bps in 2Q, +224 bps in 1H) in COP M 2Q22 2Q21 % Var 1H22 1H21 % Var Net Sales 373,833 246,277 51.8% 668,596 464,568 43.9% Other Re
Slide 16: 2Q22 Consolidated Financial Results
2Q22 Consolidated Financial Results Recurring EBITDA and Net Income growth from solid retail(1) performance and operating efficiencies across countries in COP M 2Q22 2Q21 % Var 1H22 1H21 % Var Net Sales 4,530,238 3,536,415 28.1% 8,905,386 7,126,628 25.0% Other Revenue 186,977 160,272 16.7% 413,796 3
Slide 17: 2Q22 Group Share Net Result
2Q22 Group Share Net Result The 22.7% growth showed a solid operating performance that offset the effects of IAS 29 in Argentina and higher provisions in TUYA and rates (interest and tax) Highlights • Positive contribution from the retail business and lower non-recurring expenses (mainly the asset d
Slide 18: 2Q22 Debt and Cash at Holding Level
2Q22 Debt and Cash at Holding(1) Level Solid operational performance continued favoring a positive cash stream to shareholders(2) in thousand million COP LTM 2022 LTM 2021 Variation EBITDA 1,067 899 18.7% Operational results before WK 914 745 22.7% Lease liabilities amortizations (355) (279) 27.0% C
Slide 19: 2Q22 Conclusions
2Q22 Conclusions Recurring EBITDA (21%) and Net Income (22.7%) growth from solid top line performance and operating efficiencies Consolidated • Solid net sales growth (+28.1%(1)) from improved commercial performance (above CPI levels in Colombia and Argentina) and omni- channel growth (+24.4%) • Rec
Slide 20: Appendices
Appendices
Slide 21: Share Buyback
Settlement Results Buyback Share Buyback Rules Operation # of Acceptances Share Independent Mechanism 499 buyback operation Price per share: COP 21,000 # of Total shares 14,982,863 Minimum amount of shares: 1 % from Maximum to 98.45% buy Maximum amount of shares: 15,238,095 Total Amount COP 314,640,
Slide 22: 2Q/1H22 Consolidated Financial Results
2Q/1H22 Consolidated Financial Results in COP M 2Q22 2Q21 % Var 1H22 1H21 % Var Net Sales 4,530,238 3,536,415 28.1% 8,905,386 7,126,628 25.0% Other Revenue 186,977 160,272 16.7% 413,796 389,231 6.3% Net Revenue 4,717,215 3,696,687 27.6% 9,319,182 7,515,859 24.0% Cost of Sales (3,505,354) (2,715,735)
Slide 23: 2Q22 P&L and Capex by Country
2Q22 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M 2Q22 2Q22 2Q22 2Q22 Net Sales 3,384,527 771,878 373,833 4,530,238 Other Revenue 165,841 6,931 14,348 186,977 Net Revenue 3,550,368 778,809 388,181 4,717,215 Cost of Sales (2,737,839) (511,561) (256,111) (3,505,
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2021 Jun 2022 Var % in COP M Dec 2021 Jun 2022 Var % Assets 16,901,179 16,564,400 (2.0%) Liabilities 8,872,702 8,554,029 (3.6%) Current assets 5,833,360 5,043,815 (13.5%) Current liabilities 6,518,400 6,232,921 (4.4%) Cash & Cash Equivalents 2,541,579 1,243,88
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow in COP M Jun 2022 Jun 2021 Var % Profit 186,270 176,883 5.3% Adjustment to reconciliate Net Income 692,539 580,766 19.2% Cash Net (used in) Operating Activities (769,224) (678,203) 13.4% Cash Net (used in) Investment Activities (137,361) (286,921) (52.1%) Cash net provided by
Slide 26: Debt by Country and Maturity
Debt by Country and Maturity Net debt breakdown by country 30 Jun 2022, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 695,529 711,546 603,801 - 1,315,347 Long-term debt 648,764 648,764 - - 648,764 Total gross debt (1) 1,344,293 1,360,310 603,801 - 1,964,111 Ca
Slide 27: 2Q/1H22 Holding P&L
2Q/1H22 Holding(1) P&L in COP M 2Q22 2Q21 % Var 1H22 1H21 % Var Net Sales 3,388,924 2,666,961 27.1% 6,711,814 5,415,760 23.9% Other Revenue 87,338 87,282 0.1% 216,413 247,997 (12.7%) Net Revenue 3,476,262 2,754,243 26.2% 6,928,227 5,663,757 22.3% Cost of Sales (2,735,369) (2,129,226) 28.5% (5,431,64
Slide 28: 2Q/1H22 Holding Balance Sheet
2Q/1H22 Holding(1) Balance Sheet in COP M Dec 2021 Jun 2022 Var % in COP M Dec 2021 Jun 2022 Var % Assets 14,422,470 13,931,173 (3.4%) Liabilities 7,541,065 7,085,856 (6.0%) Current assets 4,686,474 3,807,944 (18.7%) Current liabilities 5,137,135 4,757,782 (7.4%) Cash & Cash Equivalents 2,063,528 71
Slide 29: Store Number and Sales Area
Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Exito 213 611,650 Carulla 101 87,317 Surtimax 70 30,140 Super Inter 60 58,601 Surtimayorista 41 40,131 Total Colombia 485 827,839 Uruguay Devoto 59 40,116 Disco 30 35,252 Geant 2 16,411 Total Uruguay 91 91,779 Argen
Slide 30: 2022E Outlook
2022E Outlook • Top line growth benefited by innovation, omni-channel and complementary businesses • To maintain Recurring EBITDA levels at consolidated level considering inflationary pressures on expenditure • Omni-channel to represent a high-single digit share on consolidates sales • Expansion(1)
Slide 31: Grupo Éxito Strategic Pillars
Grupo Éxito Strategic Pillars Leading transformation by focusing on customer and key retail trends Omni-client Our people 4. Asset / Traffic 1. Innovation 2. Omni-channel 3. Digital Transformation 5. ESG Monetization ▪ Models & Formats ▪ E-commerce ▪ Apps ▪ Loyalty Coalition ▪ Zero malnutrition ✓ Pr
Slide 32: ESG Strategy
ESG Strategy Six pillars with clear purposes, strategic focus and contribution, aligned with Sustainable Development Goals Work towards the eradication Environmental protection Promote sustainable trade of chronic child malnutrition • Actions to manage climate practices in Colombia by 2030 change •
Slide 33: Grupo Éxito´s Ecosystem
Grupo Éxito´s Ecosystem Leading retail through innovation and integration of BU´s across a comprehensive ecosystem with strong synergies #1 loyalty coalition in Colombia, +130 allied #1 shopping brands and +5.5 M clients mall operator Multi-banner and in Colombia multi-format retail structure #3 rea
Slide 34: Investor Relations contact
María Fernanda Moreno R. Head of Investor Relations +574 6049696 Ext 306560 mmorenor@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 Exchange is not a
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