Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — Q2 2021 Earnings Presentation
31 slides from Almacenes Exito SA's earnings presentation, Jul 27, 2021
Slide 1: 2Q21 Grupo Éxito Financial Results
2Q21 Grupo Éxito Financial Results July 27, 2021 “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 guarantees of its future occurrence. Grupo Éxito operat
Slide 3: Agenda
Agenda • Financial and operating highlights • Performance by country • Consolidated financial results • Q&A session 3
Slide 4: 2Q21 Consolidated Financial & Operating Highlights
2Q21 Consolidated Financial(1) & Operating Highlights Margin expansion continued evolving at Recurring EBITDA (+18 bps) and Net Income (+103 bps) Financial Highlights Operating Highlights ▪ Net sales driven by omni-channel, innovation and ▪ A high omni-channel share on sales (12.6% Col, Recurring EB
Slide 5: Net Sales & SSS Performance in Colombia
Net Sales (1) & SSS (1) Performance in Colombia Top line grew by 5.8% vs. 2Q19 and by 1.1% vs. 2Q20 (ex-COVID-19 effect) 2Q21 1H21 Low- cost & Low-cost Other & Other (2) Variations (2) SSS (1) -1.8% -2.2% -9.0% 8.8% -2.7% -2.2% -6.8% -0.1% Total (1) -1.4% -2.7% -9.1% 10.7% -3.6% -2.7% -7.0% -3.9% To
Slide 6: Performance by Segment
Performance by Segment Innovation in formats and omni-channel partially offset the challenging context Éxito: Carulla: Low-cost & Other(1): ▪ +1 Éxito WOW in 2Q21; 12 stores in ▪ +1 FreshMarket store in 2Q21, 15 ▪ +7 Super Inter Vecino in 2Q21, 14 stores total (5.2 p.p. in sales growth above stores
Slide 7: Innovation in Models & Formats
Innovation in Models & Formats WOW and FreshMarket stores represented a share of 20.2% of Colombia sales Éxito Wow: Innovation in Hypermarkets Carulla FreshMarket: Premium , fresh and sustainable The best merge of digital and physical worlds Performance levered by digital and omni-channel initiative
Slide 8: Low-cost & other
Low-cost & other Store conversion and omni-channel boosted sales performance Segment: 18.5% share on total sales (+210 bps vs. 2Q20) 14 stores YTD A profitable 21 stores 2021E wholesale format 34 stores YTD 36 stores 2021E 4.4% of total sales YTD (4.4% 2021E) Strong digital presence Sales grew by +2
Slide 9: 1H21 Omni-channel Strategy
1H21 Omni-channel(1,2) Strategy Improved performance and a sustainable contribution to share on sales (12.8%) Total Sales Share on sales(2) Orders 1H21 Highlights 3.9 M (+9.2%) COP $699 K million (+21.5%) 12.8% (vs. 10.1% in 1H20) Omnichannel Share on Sales E-commerce Click & Collect 14.7% +2.7p.p .
Slide 10: Asset and Traffic Monetization Activities
Asset and Traffic Monetization Activities Increased contribution to margins from complementary activities Real Estate Business Puntos Colombia 18.5M clients (5 M with Habeas Data) Revenue grew 2.2x(1) in 2Q21 +110 brands allies Viva Envigado, the largest drive-thru vaccination center in Antioquia 12
Slide 11: 2Q21 Sustainable Activities
2Q21 Sustainable Activities Commitment with sustainability initiatives to generate value: economic growth, social development and environmental protection Child Nutrition Local purchasing and suppliers training 37,750 children benefited in 1H21 from nutrition and 92% of fruit and vegetables compleme
Slide 12: Operating Results: Colombia
Operating Results: Colombia EBITDA margin gains (27bps in 2Q, 133 bps in 1H) boosted by real estate and TUYA in COP M 2Q21 2Q20 % Var 1H21 1H20 % Var Net Sales 2,664,586 2,733,063 (2.5%) 5,411,246 5,646,675 (4.2%) Recurring EBITDA Evolution Other Revenue 146,414 120,392 21.6% 365,780 258,348 41.6% N
Slide 13: Operating Results: Uruguay
Operating Results: Uruguay A solid 9.5% EBITDA margin in 2Q21 driven by internal efficiencies Results in COP in 2Q21 affected by a -5.5% FX effect in COP M 2Q21 2Q20 % Var 1H21 1H20 % Var Net Sales 625,980 641,668 (2.4%) 1,251,242 1,345,668 (7.0%) Total Sales Evolution(*) Other Revenue 6,600 6,058 8
Slide 14: Operating Results: Argentina
Operating Results: Argentina Improved performance despite new restrictions to control higher peaks of contagion Results in COP affected by a -11.8% FX effect in COP M 2Q21 2Q20 % Var 1H21 1H20 % Var Net Sales 246,277 185,325 32.9% 464,568 467,601 (0.6%) Total Sales Evolution(*) Other Revenue 7,352 1
Slide 15: Consolidated Financial Results
Consolidated Financial Results Profitable growth and strong margins (Net Result +4.0x; EBITDA margin 8.3%) in COP M 2Q21 2Q20 % Var 1H21 1H20 % Var Net Sales 3,536,415 3,560,056 (0.7%) 7,126,628 7,459,944 (4.5%) Recurring EBITDA Evolution Other Revenue 160,272 128,400 24.8% 389,231 280,943 38.5% Net
Slide 16: 2Q21 Group Share Net Result
2Q21 Group Share Net Result +4.0x from improved operating performance and capital structure 66,067 4,387 24,420 2,078 50,744 39,583 27,472 12,787 11,904 66,950 Net Result ∆ Complementary ∆ Retail Net Result 2Q20 ∆ NFR ∆ Non-recurring ∆ Min ∆ Income ∆ Income Net Result 2Q20 Businesses Contribution Op
Slide 17: 2Q21 Debt and Cash at Holding Level
2Q21 Debt and Cash at Holding (1) Level NFD improved by 141,000 M COP Main highlights Data in billion COP • Cash position decreased 220,000 M COP and net financial debt improved by 141,000 M COP compared to the 2Q20. • Gross debt reduced by 23.5% (354,000 M COP) as solid operational performance favo
Slide 18: 2Q21 Conclusions
2Q21 Conclusions LatAm platform ▪ Net Income grew 4x driven by lower financial and non-recurrent expenses. ▪ Recurring EBITDA margin gains (+18 bps vs 2Q21, +71 bps vs 2Q19) and positive sales performance in LFL (+1.4% ex FX and calendar effect), despite restrictions from pandemic and social turmoil
Slide 19: Appendices
Appendices 19
Slide 20: 2021E Outlook
2021E Outlook LatAm platform ▪ Net result to improve reflecting better operating performance and stability of non-operating lines ▪ Consolidated Capex of between 110 to 130 MUSD (prioritizing mainly conversions of Wow and Fresh Market stores and the strengthening of IT and logistics platforms for om
Slide 21: 2Q21/1H21 Consolidated Financial Results
2Q21/1H21 Consolidated Financial Results Consolidated figures in COP M 2Q21 2Q20 % Var 1H21 1H20 % Var Net Sales 3,536,415 3,560,056 (0.7%) 7,126,628 7,459,944 (4.5%) Other Revenue 160,272 128,400 24.8% 389,231 280,943 38.5% Net Revenue 3,696,687 3,688,456 0.2% 7,515,859 7,740,887 (2.9% ) Cost of Sa
Slide 22: 2Q21 P&L and Capex by Country
2Q21 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M 2Q21 2Q21 2Q21 2Q21 Net Sales 2,664,586 625,980 246,277 3,536,415 Other Revenue 146,414 6,600 7,352 160,272 Net Revenue 2,811,000 632,580 253,629 3,696,687 Cost of Sales (2,129,896) (416,604) (169,832) (2,715,7
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2020 Jun 2021 Var % in COP M Dec 2020 Jun 2021 Var % Assets 15,649,974 15,095,640 (3.5% ) Liabilities 8,245,701 7,513,458 (8.9% ) Current assets 5,265,996 4,377,318 (16.9% ) Current liabilities 6,422,947 5,154,392 (19.8% ) Cash & Cash Equivalents 2,409,391 1,3
Slide 24: Consolidated Cash Flow
Consolidated Cash Flow in COP M Jun 2021 Jun 2020 Var % Profit 176,883 84,951 N/A Adjustment to reconciliate Net Income 527,294 413,327 27.6% Cash Net (used in) Operating Activities (838,234) (1,103,630) (24.0%) Cash Net (used in) Investment Activities (286,921) (120,906) N/A Cash net provided by Fi
Slide 25: 2Q21 Debt by Country and Maturity
2Q21 Debt by Country and Maturity Net debt breakdown by country 30 Jun 2021, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 435,121 464,862 457,033 15,837 937,732 Long-term debt 799,348 799,348 - 0 - 799,348 Total gross debt (1) 1,234,469 1,264,210 457,033 15,8
Slide 26: 2Q21/1H21 Holding P&L
2Q21/1H21 Holding (1) P&L in COP M 2Q21 2Q20 % Var 1H21 1H20 % Var Net Sales 2,666,961 2,734,938 (2.5%) 5,415,760 5,653,741 (4.2%) Other Revenue 87,282 64,089 36.2% 247,997 134,573 84.3% Net Revenue 2,754,243 2,799,027 (1.6% ) 5,663,757 5,788,314 (2.2% ) Cost of Sales (2,129,227) (2,195,533) (3.0%)
Slide 27: Holding Balance Sheet
Holding(1) Balance Sheet in COP M Dec 2020 Jun 2021 Var % in COP M Dec 2020 Jun 2021 Var % Assets 13,468,080 12,843,391 (4.6% ) Liabilities 7,264,217 6,471,451 (10.9% ) Current assets 4,309,539 3,434,152 (20.3% ) Current liabilities 5,310,807 4,002,362 (24.6% ) Cash & Cash Equivalents 1,969,470 932,
Slide 28: 2Q21 Store Number and Sales Area
2Q21 Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 237 620,312 Carulla 97 86,668 Surtimax 72 33,271 Super Inter 61 58,745 Surtimayorista 34 33,621 Total Colombia 501 832,617 Uruguay Devoto 58 39,931 Disco 30 35,252 Geant 2 16,411 Total Uruguay 90 91,594 A
Slide 29: 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 with over #1 shopping 105 allied brands mall operator Absolute market in Colombia leader, with 28% retail market share #3 real est
Slide 30: Grupo Éxito Strategic Pillars
Grupo Éxito Strategic Pillars Leading transformation focusing on customer and key retail trends Omni-client Our people 4. Asset / Traffic Monetization 1. Innovation 2. Omni-channel 3. Digital Transformation 5. Sustainable Shared Value & Best Practices ▪ Models & Formats ▪ E-commerce ▪ Apps ▪ Loyalty
Slide 31: María Fernanda Moreno R. Investor Relations Director
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