Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — FY2020 Earnings Presentation
35 slides from Almacenes Exito SA's earnings presentation, Feb 23, 2021
Slide 1: 4Q/FY20 Grupo Éxito Financial Results
4Q/FY20 Grupo Éxito Financial Results February 23, 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 Please note that 4Q19 and FY19 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) and in quarterly and annua
Slide 3: Agenda
Agenda • 4Q/FY20 Financial and Operating Highlights • Performance by country • 4Q/FY20 Consolidated Financial Results • Strategic Outcome 2020 • Outlook 2021 • Q&A session 3
Slide 4: Consolidated Financial & Operating Highlights
FY20 Consolidated Financial(1) & Operating Highlights Strong retail execution, successful omni-channel strategy and innovation drove annual results SSS Net Income Omni-channel Sales FY20 Highlights +7.2% (exc. FX & CE) +4.0x 2.6x (consol) Corporate Governance Financial Highlights Operating Highlight
Slide 5: 4Q/FY20 Net Sales & SSS Performance: Colombia
4Q/FY20 Net Sales (1) & SSS (1) Performance: Colombia The strongest net sales performance in the last 4 years driven by omni-channel and innovation 4Q20 12M20 SM & B2B & SM & B2B & SI (2) Other (3) SI (2) Other (3) Variations SSS 8.8% 10.0% 10.2% 5.9% -7.7% 6.0% 5.5% 13.6% 4.3% -5.7% Total 7.2% 9.7%
Slide 6: Net Sales & SSS Performance by Segment
FY20 Net Sales (1) & SSS (1) Performance by Segment Improved performance in all banners from innovation and commercial execution Éxito: SSS Growth (1) ▪ 11 Éxito WOW stores posted 12.4 p.p. in sales growth 18.6% above other Éxito stores 15.1% ▪ Strong performance of commercial events and omni- 10.0%
Slide 7: Innovation in Models & Formats
FY20 Innovation in Models & Formats Unique and sustainable initiatives to adapt to the ever-changing retail trends through innovation Éxito Wow: Innovation in Hypermarkets Carulla FreshMarket: A premium , fresh and sustainable proposal 11 stores 14 stores 20.7% of total banner 26.5% of total banner
Slide 8: Low-cost & Private Label Strategies
FY20 Low-cost & Private Label Strategies Business models to further penetrate the base of the pyramid B2B: 5.0% share on sales Private Label A profitable wholesale Food categories format Aliados Taeq The only healthy private-label brand offered from a retailer in Colombia Frescampo A relevant low-co
Slide 9: Omni-channel Strategy
FY20 Omni-channel(1) Strategy An omni-channel share on sales, unmatchable by any food retail player in LatAm Total Sales Share on sales Orders FY20 Highlights 8.5 M (1.8x) COP $1.46 Bn (2.7x) 12.4% (vs. 4.5% in 2019) Record of omni-channel food (COP $717K M) and non-food sales (COP $745K M) 2.8x foo
Slide 10: Omni-channel Initiative's Follow-up
FY20 Omni-channel Initiative’s Follow-up Modern IT and logistic platforms to enable growth and profitability E-commerce M a r ke t p l a c e Marketplace ✓ 1.9x in visits 735 vendors ✓ Profitable unit posted positive EBITDA margin ✓ 52% increase in products sold through Marketplace ✓ Unmatched digita
Slide 11: Omni-channel Initiative's Follow-up
FY20 Omni-channel Initiative’s Follow-up Digital solutions focused on customer´s needs to improve growth and experience Apps T U YA PAY The new Éxito version improved historical trends “Digital wallet” integrated with Éxito POS system ✓ Near to 350,000 of active ✓ Money transfers between accounts us
Slide 12: Traffic Monetization Activities
FY20 Traffic Monetization Activities Adapting the strategies across other business units to maximize value creation Puntos Colombia A winning partnership between the largest retailer and bank in Colombia Launch of Marketplace 13.4 M clients 4.7 M clients Integrated with ecosystem: Apps, Viva’s regis
Slide 13: Asset Monetization Activities
FY20 Asset Monetization Activities Viva Malls maintained profitability and high occupancy while supporting tenants Real Estate Business Highlights Innovation initiatives Reinventing shopping centers with a hybrid on/off experience Launch of Viva Online, Click & Collect and Delivery service through t
Slide 14: Outcome of Innovation and omni-channel
FY20 Outcome of Innovation and omni-channel 75% of sales growth attributable to omni-channel and innovation initiatives 4.2% 1.8% 1.4% 1.7% 0.7% +5.6% 0.0% 1.8% 0.0% 11,643 1.7%1.7% 11,030 11,107 11,286 11,472 11,030 FY19 Éxito Wow Carulla FM E-commerce Others FY20 Physical Omnichannel The contribut
Slide 15: 4Q/FY20 Operating Results: Colombia
4Q/FY20 Operating Results: Colombia Annual performance driven by a solid retail business and efficiencies in COP M 4Q20 4Q19 % Var FY20 FY19 % Var EBITDA (1) Net Sales 3,330,661 3,106,881 7.2% 11,642,685 11,029,843 5.6% 106,251 Other Revenue 158,410 223,816 (29.2%) 539,587 721,586 (25.2%) 1,007,467
Slide 16: 4Q/FY20 Operating Results: Uruguay
4Q/FY20 Operating Results: Uruguay Quarterly profitability gains (+175 bps) ratified the continuing highest annual levels from innovation in COP M 4Q20 4Q19 % Var FY20 FY19 % Var Net Sales 686,492 699,028 (1.8%) 2,654,336 2,554,885 3.9% Other Revenue 9,679 7,871 23.0% 28,325 25,290 12.0% Net Revenue
Slide 17: 4Q/FY20 Operating Results: Argentina
4Q/FY20 Operating Results: Argentina Quarterly profitability gains (+393 bps) despite macro headwinds, strongly contributed to annual results in COP M 4Q20 4Q19 % Var FY20 FY19 % Var Net Sales 157,045 276,875 (43.3%) 847,060 925,062 (8.4%) Other Revenue 3,369 13,363 (74.8%) 27,153 45,752 (40.7%) Net
Slide 18: 4Q/FY20 Consolidated Financial Results
4Q/FY20 Consolidated Financial Results A stable annual EBITDA benefited by a strong retail contribution in COP M 4Q20 4Q19 % Var FY20 FY19 % Var EBITDA (2) Net Sales 4,173,671 4,079,945 2.3% 15,141,244 14,503,846 4.4% Other Revenue 171,342 244,583 (29.9%) 594,595 789,237 (24.7%) 150,766 1,279,782 -1
Slide 19: Group Share Net Result
FY20 Group Share Net Result Net Income rose 4.0x from improved retail performance and a leaner structure 29,791 247,299 -9,995 -49,263 230,872 145,008 -30,883 57,602 43,923 -158,687 Net Result ∆ Retail ∆ Comp. Net Result ∆ NFR ∆ Income ∆ Min ∆ Non-rec. ∆ Income Net Result FY19 Contribution Bsuinesse
Slide 20: Debt and Cash at Holding Level
FY20 Debt and Cash at Holding (1) Level The group remained with strong cash position despite dividend distribution 2.21 2.00 1.97 Cash (& other assets) 0.98 Gross debt (financial liabilities & warranties) -0.20 Net financial debt -0.99 2020 2019 Data in billion COP Main highlights Net Financial Debt
Slide 21: 4Q/FY20 Conclusions
4Q/FY20 Conclusions LatAm platform ▪ Net Income grew 4.0x from a solid performance from retail in Colombia and Uruguay and from a leaner financial structure. ▪ EBITDA and cash generation led to higher cash levels and a sound financial structure. ▪ Strategic focus on profitable omni-channel favoured
Slide 22: 2020 Outlook vs. Outcome
2020 Outlook vs. Outcome Outlook 2020 Outlook 2020 Post-Covid Outcome 2020 Retail Expansion: 20 to 24 stores (6 to 7 WOW and 17 stores (2 WOW, 1 FM, 4 Surtimayorista, 7 Superinter and 3 Éxito Express) + Shifting retail investment into omnichannel FreshMarket and 8 to 10 Surtimayorista) 176 Click&Col
Slide 23: 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 24: 2021 Outlook
2021 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 25: Appendices
Appendices 25
Slide 26: Grupo Éxito Strategic Pillars 2021 - 2023
Grupo Éxito Strategic Pillars 2021 - 2023 Leading transformation focusing on customer and 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 ▪
Slide 27: 4Q/FY20 Consolidated Financial Results
4Q/FY20 Consolidated Financial Results Consolidated figures in COP M 4Q20 4Q19 % Var FY20 FY19 % Var Net Sales 4,173,671 4,079,945 2.3% 15,141,244 14,503,846 4.4% Other Revenue 171,342 244,583 (29.9%) 594,595 789,237 (24.7%) Net Revenue 4,345,013 4,324,528 0.5% 15,735,839 15,293,083 2.9% Cost of Sal
Slide 28: 4Q/FY20 P&L and Capex by Country
4Q/FY20 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M FY20 FY20 FY20 FY20 Net Sales 11,642,685 2,654,336 847,060 15,141,244 Other Revenue 539,587 28,325 27,153 594,595 Net Revenue 12,182,272 2,682,661 874,213 15,735,839 Cost of Sales (9,355,135) (1,763,753) (59
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2019 Dec 2020 Var % in COP M Dec 2019 Dec 2020 Var % Assets 15,861,015 15,649,974 (1.3% ) Liabilities 7,416,173 8,245,701 11.2% Current assets 5,356,665 5,265,996 (1.7% ) Current liabilities 5,906,214 6,422,947 8.7% Cash & Cash Equivalents 2,562,674 2,409,391
Slide 30: Consolidated Cash Flow
Consolidated Cash Flow in COP M Dec 2020 Dec 2019 Var % Profit 329,902 922,676 (64.2% ) Adjustment to reconciliate Net Income 1,046,604 2,321,985 (54.9%) Cash Net (used in) Operating Activities 630,301 (462,317) N/A Cash Net (used in) Investment Activities (273,926) (6,734,779) (95.9%) Cash net prov
Slide 31: Debt by Country and Maturity
FY20 Debt by Country and Maturity Net debt breakdown by country 31 Dec 2020, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 729,300 753,749 427,282 17,141 1,198,172 Long-term debt 325,864 344,873 - 0 - 344,873 Total gross debt (1) 1,055,164 1,098,622 427,282 17
Slide 32: 4Q/FY20 Holding P&L
4Q/FY20 Holding (1) P&L in COP M 4Q20 4Q19 % Var FY20 FY19 % Var Net Sales 3,329,904 3,109,562 7.1% 11,649,896 11,044,128 5.5% Other Revenue 97,579 146,492 (33.4%) 312,444 440,144 (29.0%) Net Revenue 3,427,483 3,256,054 5.3% 11,962,340 11,484,272 4.2% Cost of Sales (2,636,146) (2,463,529) 7.0% (9,34
Slide 33: Holding Balance Sheet
Holding(1) Balance Sheet in COP M Dec 2019 Dec 2020 Var % in COP M Dec 2019 Dec 2020 Var % Assets 13,519,213 13,468,080 (0.4% ) Liabilities 6,322,685 7,264,217 14.9% Current assets 4,448,466 4,309,539 (3.1% ) Current liabilities 4,847,078 5,310,807 9.6% Cash & Cash Equivalents 2,206,153 1,969,470 (1
Slide 34: Store Number and Sales Area
FY20 Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 241 619,954 Carulla 95 85,129 Surtimax 74 34,271 Super Inter 69 65,557 Surtimayorista 34 33,621 Total Colombia 513 838,532 Uruguay Devoto 59 40,127 Disco 30 35,252 Geant 2 16,411 Total Uruguay 91 91,790 A
Slide 35: 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