Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Q3 2023 Earnings Presentation
44 slides from Almacenes Exito Sa's earnings presentation, Nov 14, 2023
Slide 1: 3Q23 Financial Results Grupo Éxito
3 Q23 Financial R esults Grupo Éxito “ 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 t he issuer” .
Slide 2: Note on forward looking statements
2 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 . The words “
Slide 3: Agenda
▪ Spin - off outcome ▪ ESG strategy ▪ Quarterly highlights ▪ Financial performance ▪ Conclusions and Q&A session Agenda 3
Slide 4: Nourishing Colombia with Opportunities
Qrupo Nourishing Colombia with Opportunities
Slide 5: Listing of Grupo Éxito shares in markets: NYSE, B3 and BVC
Listing of Grupo Éxito shares in 3 markets: NYSE, B3 and BVC Spin - off process executed Ownership structure and share allocation by market p ost spin - off 13% 34% Float 53% • Grupo Éxito float increased to ~53% • Shareholder's base 1 rose to around 53,000 holders distributed in 3 markets • Float w
Slide 6: Strategy
grupo > To) © .— 4°) i a) =) an Strategy
Slide 7: ESG Strategy YTD
Zero Malnutrition Sustainable Trade My Planet Governance & Integrity Healthy lifestyle ESG Strategy YTD ESG initiatives to generate value: economic growth, social development and environmental protection • Lactatón, Grupo Éxito Ž s breastfeeding campaign led as the # 1 trend on X (Twitter) . • The C
Slide 8: Quarterly Highlights
Quarterly Highlights 8
Slide 9: Quarterly highlights: Recurring EBITDA and Net Revenue
Recurring EBITDA 3 COP $ 328,709 M ( - 17.6% 3Q23, 6.4% margin; - 13.1% when excluding FX ) Net Revenue COP $ 5.1 B (+0.5%, impacted by devaluation in Argentina; + 9.1% when excluding FX) Notes : ( 1 ) Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect ( - 7 .
Slide 10: Financial Performance
noo Financial Performance
Slide 11: International operations grew Retail Sales above local inflation while Colombia slowed
International operations grew Retail Sales above local inflation while Colombia reflected consumer slowdown Net Revenue performance • CPI 11% LT - sept, 11.5% food inflation ( internal was 3.6 p.p. below); retail sales (exc. gas and vehicles) decreased 4% YTD. • Solid real estate performance (+16.5%
Slide 12: 9M23 performance of innovative models
9M23 performance of innovative models 36% (+169 bps vs 9M22) 63% (+141 bps vs 9M22) Share on Éxito’s Retail Sales Retail Sales increase vs. regular stores (included in 205 Éxito stores) +26.2 p. p. after 24 months +16.2 p.p. after 24 months 12 Hypers • Innovative experience • New generation of hyper
Slide 13: 9M23 update on Innovative Models
9M23 update on Innovative Models Surtimayorista, Allies and Misurtii: Targeting and associating with the traditional market 60 stores 2.1x after 24 months • Expansion continued with 14 openings YTD (+8.2 K sqm) • Performance reflected economic slowdown effect on institutional customers Cash & Carry
Slide 14: Omni-channel performance
Omni - channel 1 performance ( 1 ) Include . com, marketplace, home delivery, Shop&Go , Click&Collect , digital catalogues and B 2 B virtual 14 + 25.5% Food Sales (12.8% share) 5.1 M Orders (+45%) 58 % and 56% Share of Turbo on Rappi Retail Sales during 3Q and 9M Orders: 14 M (+52.3%) 9M23 3Q23 13.5
Slide 15: Update on asset and traffic monetization: Real Estate Business
Update on asset and traffic monetization Real Estate Business The most important complementary business and contributor to margins 786 K sqm of GLA YTD (33 assets ) Occupancy rate 96.7 % (vs. 96.3 % in 3Q22) Note : ( 1 ) Viva Malls is a JV with Fondo Inmobiliario Colombia (FIC) in which Grupo Éxito
Slide 16: Update on Real estate projects
IKEA Viva Envigado 17 K sqm of GLA 54.3 K sqm of new sales area Update on Real estate projects 1 st IKEA store in Antioquia 99.8% progress Handed to IKEA on October 13th for final fitting 16 Update on asset and traffic monetization Opening of Calle Bistró Villavicencio 17 brands operating (as of Oct
Slide 17: Loyalty platform and TUYA update
# 1 Brand power according to Kantar Present in 1/3 household s +6.7 M active clients (+10.6% vs 9M22) AAA rating Note : TUYA and Puntos Colombia are 50 / 50 JV ´ s with Bancolombia . Provision levels and risk coverage continued significantly better than legal requirements Loyalty platform PCO 530
Slide 18: Grupo Disco Uruguay: Acquisition of minority stake of 6.66%
Grupo Disco Uruguay: Acquisition of minority stake of 6.66% Acquisition of 2 stores 2 Independent supermarket stores (+836 sqm of sales area ) Minority stake acquisition Devoto Mercadito Rivera Devoto Hipervital Opened on August 15 th Opened on September 1 st Located in Av.Giannattasio , Ciudad de l
Slide 19: Argentina: Solid Retail Sales in local currency and real estate
Solid Retail Sales in local currency , strong performance of the real estate business and the Cash and Carry format Argentina • 900 to 1200 sqm of sales areas • 1,600 SKUs • Focus on food and beverages • Great prices by high volumes • A simpler purchasing experience Real Estate Business 94% Occupanc
Slide 20: Operating performance by country
Operating performance by country • GP : (margin - 45 bps 3 Q 23 , - 9 bps 9 M 23 ) reflected the solid contribution of recurrent real estate income (+ 16 . 5 % in 3 Q ; + 13 . 6 % 9 M 23 ), offset by price investment . • Recurring EBITDA 1 : ( - 20 . 6 % 3 Q 23 , - 12 . 7 % 9 M 23 ) reflected : (i)
Slide 21: Consolidated operating performance
Consolidated operating performance • Other revenue growth (+ 8 . 2 % ) offset by FX effects in Argentina ( - 62 % ) and Colombia outcome during 3 Q 23 , affected by : x Lower Retail Sales (mainly non - food), affected by higher interest rates and lower purchasing power that decreased consumption of
Slide 22: Net income highlights
• Net loss during 3Q23 reflected the positive variations of income tax and net income contribution of international operations offset by: (i) Macro and consumer headwinds in Colombia, (ii) I ncreased financial expenses from higher interest rates 1 (+325 bps vs 3Q22) to control inflation, (iii) Impro
Slide 23: Free cash flow, leverage and cash at holding level
Free cash flow of COP $103,000 M despite the economic slowdown driven by improved management of working capital 3Q23 Leverage and Cash at holding level 1 • Dividends from subsidiaries continued contributing to the company’s CapEx and payments of dividends to shareholders . • Investment to increase s
Slide 24: Conclusions & Q&A session
Conclusions & Q&A session 24
Slide 25: Conclusions
Conclusions • Spin - off and listing processes ௗ completed, followed by higher traded volumes of securities across the 3 markets . • A resilient consolidated Net Revenue performance ௗ driven by ௗ Uruguay and Argentina . • Colombia Net Revenue grew 2 . 9 % during 3 Q 23 (+ 5 . 1 % YTD) and reflected
Slide 26: Appendices
Appendices 26
Slide 27: Glossary and Notes
Glossary and Notes Notes: • Numbers are expressed in long scale, COP billion represent 1 , 000 , 000 , 000 , 000 . • Growth and variations are expressed in comparison to the same period last year, except when stated otherwise . • Sums and percentages may reflect discrepancies due to rounding of figu
Slide 28: Consolidated Income Statement
Consolidated Income Statement Note : Consolidated data include results from Colombia, Uruguay and Argentina, eliminations and the FX effect ( - 7 . 8 % at Net Revenue and - 5 . 2 % at recurring EBITDA in 3 Q 23 and - 2 . 5 % and 1 . 4 % in 9 M 23 , respectively . Recurring EBITDA refers to Earnings
Slide 29: Income Statement by Country
Income Statement by C ountry Note: The Colombia perimeter includes the consolidation of Almacenes Éxito S.A. and its subsidiaries in the country. Recurrin g E BITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense
Slide 30: Income Statement and CapEx by Country
Income Statement and CapEx by Country Note : Consolidated data include results from Colombia, Uruguay and Argentina, eliminations and the FX effect ( - 7 . 8 % at Net Revenue and - 5 . 2 % at recurring EBITDA in 3 Q 23 and - 2 . 5 % and 1 . 4 % in 9 M 23 , respectively . The Colombia perimeter inclu
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 31 in COP M Sep 2023 Dec 2022 Var % Assets 16,689,571 18,183,289 (8.2%) Current assets 4,982,164 5,947,863 (16.2%) Cash & Cash Equivalents 1,098,682 1,733,673 (36.6%) Inventories 2,691,921 2,77
Slide 32: Consolidated Cash Flow
Consolidated Cash Flow Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 32
Slide 33: Holding Income Statement
Holding Income Statement 1 ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense) . 33 in COP M 3Q23 3Q22 % Var 9M23 9M22 % Var Ret
Slide 34: Holding Balance Sheet
Holding Balance Sheet 1 ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries . 34 in COP M Sep 2023 Dec 2022 Var % Assets 13,816,804 14,761,545 (6.4%) Current assets 3,716,004 4,432,647 (16.2%) Cash & Cash Equivalents 674,950 1,250,398 (46.0%) Inventories 2,156,345 2,105,200 2.4% Ac
Slide 35: Debt by country and maturity
Debt by country and maturity Note : The Colombia perimeter includes the consolidation of Almacenes Éxito S . A . and its subsidiaries in the country . 1 ) Debt without contingent warranties and letters of credits . ( 2 ) Holding gross debt issued 100 % in Colombian Pesos with an interest rate below
Slide 36: Store number and Retail Sales area
Store number and Retail Sales area Note : The store count does not include the 1 , 889 allies in Colombia . 36 Banner by country Store number Sales area (sqm) Colombia Exito 205 625,460 Carulla 110 89,210 Surtimax 77 31,655 Super Inter 59 56,907 Surtimayorista 60 53,483 Total Colombia 511 856,716 Ur
Slide 37: Accounts Reconciliations: Exchange Rates Effects on Results
Accounts Reconciliations Exchange Rates Effects on Results Note : Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense) . Data in COP includes a - 1 . 2 % FX effect in Uruguay at Net Revenue and at Re
Slide 38: Accounts Reconciliations: Recurring EBITDA and Adjusted EBITDA
Accounts Reconciliations Recurring EBITDA and Adjusted EBITDA Note : Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense . Adjusted EBITDA refers to Earnings B efore Interest, Taxes, Depreciation, an
Slide 39: Accounts Reconciliations: Real Estate Revenues
Accounts Reconciliations 3Q23 3Q22 Var 9M23 9M22 Var Income from concessionaires 22,085 20,962 5.4% 71,310 64,944 9.8% Income from building administration 13,244 11,046 19.9% 39,210 32,545 20.5% Income from property rent 70,809 61,820 14.5% 208,071 175,787 18.4% Income from rent of other spaces 11,7
Slide 40: Accounts Reconciliations: Free Cash Flow
Accounts Reconciliations Free Cash Flow Note : Free cash flow (FCF) = Net cash flows used in operating activities + Net cash flows used in investing activities + Variation of collections on behalf of third parties + Lease liabilities paid + Interest on lease liabilities paid (using variations for th
Slide 41: Grupo Éxito strategic pillars
Grupo Éxito strategic pillars Leading transformation by focusing on customer and key retail trends 1 . Innovation 3. Digital Transformation 2. Omni - channel 4. Asset / Traffic Monetization 5. ESG Focus on improving Customer Service Relational Marketing HR & Suppliers Relationship IT Development Our
Slide 42: ESG strategy
ESG strategy Six pillars with clear purposes, strategic focus and contribution, aligned with Sustainable Development Goals Work towards the eradication of chronic child malnutrition in Colombia by 2030 • Communicate and raise awareness • Generate resources and alliances • Influence public policies •
Slide 43: Grupo Éxito's ecosystem
Grupo Éxito Dz s e cosystem Leading retail through innovation and integration of BU Dz s across a comprehensive ecosystem with strong synergies Unmatched digital penetration in the region Click & collect, digital catalogues, , WhatsApp and Clickam Over 1,400 vendors #1 food retailer, high margins and
Slide 44: Investor Relations contacts
María Fernanda Moreno R . Head of Investor Relations +(57) 312 796 2298 mmorenor@grupo - exito.com Éxito Calle 80, Cr 59 A No. 79 – 30 Bogotá, Colombia www.grupoexito.com.co exitoinvestor.relations@grupo - exito.com • “The Issuers Recognition - IR granted by the Colombian Stock Exchange is not a cer