Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — Q2 2020 Earnings Presentation
29 slides from Almacenes Exito SA's earnings presentation, Jul 28, 2020
Slide 1: 2Q20 Grupo Éxito Financial Results
2Q20 Grupo Éxito Financial Results July 28, 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, 2Q19 and 1H19 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) a
Slide 3: Agenda
Agenda • 2Q20 Financial and Operating highlights • Performance by country • 2Q20 Consolidated Financial Results • Q&A session 3
Slide 4: Consolidated Financial & Operating Highlights
2Q20 Consolidated Financial(1) & Operating Highlights Recurring EBITDA margin gains driven by Colombia and Uruguay retail performance SSS Recurring EBITDA margin Omnichannel growth 2Q20 Highlights +7.0% (exc. FX & CE) 8.1% (+53 bps vs 2Q19) (2.8x Consol) Corporate Governance Financial Highlights Ope
Slide 5: 2Q/1H20 Net Sales & SSS Performance: Colombia
2Q/1H20 Net Sales (1) & SSS (1) Performance: Colombia Consistent LFL sales growth despite COVID-19 2Q20 1H20 SM & B2B & SM & B2B & SI (2) Other (3) SI (2) Other (3) Variations SSS 4.7% 2.5% 18.6% 4.3% -5.9% 7.7% 5.7% 17.4% 9.2% 3.3% Total 4.7% 2.6% 18.5% -1.4% 6.4% 7.6% 5.8% 17.3% 2.7% 13.9% SSS (1)
Slide 6: Net Sales & SSS Performance by Segment: Colombia
2Q20 Net Sales(1) & SSS(1) Performance by Segment: Colombia Carulla sales levels and the food category performance favoured profitable growth Éxito: ▪ Éxito WOW posted 15.3% sales growth (+16.5 p.p. vs. other Éxito stores) ▪ Sales driven by the growth of the FMCG (mid-teens) and the food (+12%) cate
Slide 7: Omni-channel Strategy: Colombia
2Q20 Omni-channel Strategy: Colombia The strongest quarterly performance (2.9x sales growth; 14.7% share vs. 4.7% in 2Q19) Total Sales Share on sales Deliveries 2Q20 Highlights COP $410,000 M (2.9x) 14.7% 2.6 M (2.3x) Record of omnichannel food sales (COP $226K M, 3.4x) and non-food (COP$184K, 2.5x)
Slide 8: Apps complementing on-line initiatives: Colombia
Apps complementing on-line initiatives: Colombia 3 M downloads with high usage and access to personalized discounts Key channel strongly adopted by customers ✓ +87 K orders in 2Q20 (5.8x vs 2Q19) “My Discount”, strengthening relational discounts ✓ +45% higher average ticket vs. basket without coupon
Slide 9: Innovation in Models & Formats: Colombia
2Q20 Innovation in Models & Formats: Colombia The WOW and FreshMarket stores posted double-digit growth vs. non-reformed boxes The best merge of the digital and the Shopping experience and greater freshness Best wholesales price physical worlds ▪ 9 stores YTD ▪ 13 stores YTD ▪ 32 stores YTD (3.8% sh
Slide 10: Innovation in Channels and Customer Service: Colombia
Innovation in Channels and Customer Service: Colombia A timely response to new customers´ needs Click & Collect VIVA Omnichannel platform Click/Call & Collect service available at An omnichannel platform launched to 450 stores improve tenants' sales and their retention Call center: ✓ VIVA Online (11
Slide 11: Business Strategy: Colombia
2Q20 Business Strategy: Colombia Synergies between innovative models and omnichannel drove differentiation 4.5% 1.9% 0.2% 1.0% 1.7% -0.1% 4.7% +4.7% -0.3% 9.0% -4.4% 2,728 2,733 0.2% 2,654 2,678 2,678 2,611 2,611 2Q19 Éxito Wow Carulla FM SMY E-commerce Others 2Q20 Physical Omnichannel A strong omni
Slide 12: 2Q/1H20 Operating Results: Colombia
2Q/1H20 Operating Results: Colombia Recurring EBITDA margin gained 66 bps to 8.5% (+11.6%) in COP M 2Q20 2Q19 % Var 1H20 1H19 % Var Net Sales 2,733,063 2,610,907 4.7% 5,646,675 5,249,835 7.6% Other Revenue 120,392 160,988 (25.2%) 258,348 312,936 (17.4%) Net Revenue 2,853,455 2,771,895 2.9% 5,905,023
Slide 13: 2Q/1H20 Operating Results: Uruguay
2Q/1H20 Operating Results: Uruguay Margin gains (+134 bps) from lower expenditure and strong SSS growth (+13,3%(1)) in COP M 2Q20 2Q19 % Var 1H20 1H19 % Var Net Sales 641,668 589,302 8.9% 1,345,668 1,257,623 7.0% Other Revenue 6,058 5,346 13.3% 12,343 10,781 14.5% Net Revenue 647,726 594,648 8.9% 1,
Slide 14: 2Q/1H20 Operating Results: Argentina
2Q/1H20 Operating Results: Argentina Focus on lower expenditure and cash protection partially offset macro headwinds in COP M 2Q20 2Q19 % Var 1H20 1H19 % Var Net Sales 185,325 271,691 (31.8%) 467,601 491,571 (4.9%) Other Revenue 1,263 13,389 (90.6%) 10,517 23,387 (55.0%) Net Revenue 186,588 285,080
Slide 15: 2Q/1H20 Consolidated Financial Results
2Q/1H20 Consolidated Financial Results Net Revenue +5.4% (1) and Recurring EBITDA margin (+53 bps) from a strong retail business in COP M 2Q20 2Q19 % Var 1H20 1H19 % Var Net Revenue 3,688,456 3,650,323 1.0% 7,740,887 7,344,086 5.4% Gross Profit 911,875 872,933 4.5% 1,912,997 1,852,089 3.3% Gross M a
Slide 16: Group Share Net Result
2Q20 Group Share Net Result A Net Income result from improved retail operating performance and a leaner structure Highlights • Positive variations in retail operating performance in Colombia and Uruguay operations, deferred tax and lower financial expenditure from an improved capital structure. • Ne
Slide 17: Debt and Cash at Holding Level
2Q20 Debt and Cash at Holding(1) Level Improved capital structure and healthy cash position 0,9 1,1 Cash (& other assets) -0,4 Gross debt (financial -1,5 liabilities & warranties) Net financial debt -2,9 -3,8 Data in billion COP 2019-2 2020-2 Main highlights NDF and gross debt at the holding level:
Slide 18: Conclusions
2Q20 Conclusions LatAm platform ▪ SSS growth (+7.0%(1)) driven by a strong omnichannel platform and innovative formats adapted to new retail and consumer trends. ▪ Consistency on the strategic relevance and focus on innovation and digital transformation across the region. ▪ Solid Recurring EBITDA ma
Slide 19: Appendices
grupo! Appendices 19
Slide 20: 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 21: 2Q/1H20 Consolidated Financial Results
2Q/1H20 Consolidated Financial Results Consolidated figures in COP M 2Q20 2Q19 % Var 1H20 1H19 % Var Net Sales 3.560.056 3.471.900 2,5% 7.459.944 6.999.029 6,6% Other Revenue 128.400 178.423 (28,0%) 280.943 345.057 (18,6%) Net Revenue 3.688.456 3.650.323 1,0% 7.740.887 7.344.086 5,4% Cost of Sales (
Slide 22: P&L and Capex by Country
2Q20 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M 2Q20 2Q20 2Q20 2Q20 Let Sales 2,733,063 641,668 185,325 3,560,056 Other Revenue 120,392 6,058 1,263 128,400 Net Revenue 2,853,455 647,726 186,588 3,688,456 Cost of Sales (2,198,073) (428,594) (132,701) (2,759,0
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet Diciembre de 2019 Junio de 2020 Consolidated Balance Sheet Diciembre de 2019 Junio de 2020 in COP M Dec 2019 Jun 2020 Var % in COP M Dec 2019 Jun 2020 Var % Assets 15,861,015 15,579,988 (1.8%) Liabilities 7,416,173 8,082,518 9.0% Current assets 5
Slide 24: Consolidated Cash Flow
Consolidated Cash Flow in COP M Jun 2020 Jun 2019 Var % Profit 84,951 635,197 (86.6%) Adjustment to reconciliate Net Income 413,327 2,146,121 (80.7%) Cash Net (used in) Operating Activities (1,103,630) (1,767,846) (37.6%) Cash Net (used in) Investment Activities (120,906) 887,349 N/A Cash net provid
Slide 25: Debt by Country and Maturity
2Q20 Debt by Country and Maturity Net debt breakdown by country 30 June 2020, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 1.264.521 1.289.623 392.218 22.955 1.704.796 Long-term debt 349.134 367.972 - 0 - 367.972 Total gross debt (1) 1.613.655 1.657.595 392.2
Slide 26: 2Q/1H20 Holding P&L
2Q/1H20 Holding(1) P&L in COP M 2Q20 2Q19 % Var 1H20 1H19 % Var Net Sales 2,734,938 2,614,852 4.6% 5,653,741 5,259,483 7.5% Other Revenue 64,089 91,404 (29.9%) 134,573 177,603 (24.2%) Net Revenue 2,799,027 2,706,256 3.4% 5,788,314 5,437,086 6.5% Cost of Sales (2,195,535) (2,179,594) 0.7% (4,559,221)
Slide 27: Holding Balance Sheet
Holding(1) Balance Sheet in COP M Dec 2019 Jun 2020 Var % in COP M Dec 2019 Jun 2020 Var % Assets 13,519,213 13,575,921 0.4% Liabilities 6,322,685 7,357,483 16.4% Current assets 4,448,466 3,572,537 (19.7%) Current liabilities 4,847,078 4,620,988 (4.7%) Cash & Cash Equivalents 2,206,153 1,145,644 (48
Slide 28: Store Number and Sales Area
2Q20 Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 248 625,400 Carulla 96 85,686 Surtimax 77 35,656 Super Inter 69 65,346 Surtimayorista 32 32,349 Total Colombia 522 844,436 Uruguay Devoto 60 39,886 Disco 29 33,452 Geant 2 16,411 Total Uruguay 91 89,749 A
Slide 29: 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