Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Q1 2016 Earnings Presentation
23 slides from Almacenes Exito Sa's earnings presentation, May 31, 2016
Slide 1: 1Q16 Financial Results
1Q16 Financial Results May 31st, 2016 Colombia Brazil Argentina Uruguay “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: Agenda
Agenda 1Q16 Operating Highlights International Integration 1Q16 Consolidated Financial Results Perspectives & Remarks Q&A Session 2
Slide 3: 1Q16 Operating Highlights
1Q16 Operating Highlights Strong SSS growth in Colombia, Uruguay and Argentina and resilient food sales in Brazil driven by Cash & Carry. Consolidated Capex COP$413,000 million (54% expansion, 46% maintenance). Expansion: Col: 1 Éxito hypermarket, 3 Éxito express. Bra: 1 Assaí, 1 Minimerca
Slide 4: International Integration with Tangible Synergies
International Integration with Tangible Synergies Implementation of Argentina’s commercial model “Compra del Mes”: Colombia: “Quincenazo”. Brazil: “1, 2, 3 Passos Da Economia”. Simultaneous implementation in the 3 countries. Ongoing rounds of joint negotiation with suppliers. First LatAm
Slide 5: International Integration with Tangible Synergies
International Integration with Tangible Synergies Before Éxito Textile model After Piloting a new “look & feel” textile category strategy at Extra Hyper stores in Brazil, inspired by Éxito textile model. Opening of the first Fresh Market store, in Uruguay. 5
Slide 6: Latam synergies driven by initiatives
Latam synergies driven by 15 initiatives Results in line with synergy’s target in a four years run rate (2020) worth 150 - 160 MUSD (~50BPs) Cash & Carry successfully launched in Colombia “Aliados” format is being replicated in Brazil Joint Commodity purchasing: Olive oil, Apples, Mozzarella, Salmon
Slide 7: Brazilian Cash & Carry format introduced to Colombia
Brazilian Cash & Carry format introduced to Colombia Launched the first cash & carry store in Bogotá under the banner Surtimayorista, inspired by Assaí’s business model. 7
Slide 8: Grupo Éxito's Consolidated Sales
Grupo Éxito´s Consolidated Sales Grupo Éxito consolidates itself as the food south American specialist, which offers a balanced and resilient structure Sales and mix by country 1Q16 Sales Mix Millions of COP Food Non Food Colombia 2,658,009 74% 26% Brazil 13,356,741 56% 44% Uruguay 630,450 85% 15% A
Slide 9: Sales Performance: Colombia
Sales Performance: Colombia Strong sales growth driven by food, the best Q in LFL in the last two years Total sales % Var. Calendar % Var. 1Q16 (Bn COP) Total sales effect SSS Total Colombia 2,657 7.4% 1.5% 5.1% Éxito 1,813 6.4% 1.5% 6.1% Carulla 377 11.2%** 1.2% 6.4%** Discount 411 11.3% 1.5% 5.6%
Slide 10: Éxito Brand Commercial Pillars
Éxito Brand Commercial Pillars Successful levers drove the 1Q16 Growth “Quincenazo”, the commercial strategy “Insuperables”, unbeatable prices in a from Argentina selected portfolio of basic products “Fresh Specialist Model” transferred EDLP strategy in the textile category from Super Inter 10
Slide 11: 1Q16 Operational Results: Colombia
1Q16 Operational Results: Colombia Solid performance of the business, ratifies Éxito strong position in the market Colombia 1Q16 1Q15 Millions of Millions of 1Q16/15 COP COP Net Revenues 2,756,455 2,558,179 7.8% Gross Profit 668,888 596,718 12.1% Gross Margin 24.3% 23.3% SG&A Expenses 569,739 516,04
Slide 12: Sales Performance: Brazil
Sales Performance: Brazil Regardless the economic scenario, positive food sales evolution (+10.9%) Total sales % Var. Total 1Q16 (Bn COP) sales % Var. SSS Total Brazil 13,357 3.0% 0.8% Food 8,183 10.9% 6.0% Non Food 3,399 -12.7% -11.8% E-commerce 1,774 7.7% 7.7% Sales and SSS reflected a challenging
Slide 13: 1Q16 Operational Results: Brazil
1Q16 Operational Results: Brazil Performance impacted by a challenging macro environment with a non-food margin upside potential Brazil 1Q16 Millions of COP Net Revenues 14,793,656 Gross Profit 3,227,207 Gross Margin 21.8% SG&A Expenses 3,071,743 Explained by levels of: SG&A /Net Revenues 20.8% ~4%
Slide 14: Sales Performance: Uruguay
Sales Performance: Uruguay Remarkable sales growth above inflation Total sales % Var. Total Calendar % Var. 1Q16 (Bn COP) sales effect SSS Uruguay 630 15.8% 0.6% 13.1% • Sales benefited from the performance of the Devoto brand and accurate commercial strategies. • Focus on strengthening proximity wi
Slide 15: 1Q16 Operational Results: Uruguay
1Q16 Operational Results: Uruguay High profitability levels Uruguay 1Q16 1Q15 Millions of Millions of 1Q16/15 COP COP Net Revenues 637,298 533,221 19.5% Gross Profit 215,658 185,083 16.5% Gross Margin 33.8% 34.7% SG&A Expenses 143,468 145,545 -1.4% SG&A /Net Revenues 22.5% 27.3% Recurring Operating
Slide 16: Sales Performance: Argentina
Sales Performance: Argentina Same-store-sales growth out-performing the market Total sales % Var. Total Calendar % Var. 1Q16 (Bn COP) sales effect SSS Argentina 328 30.7% 1.3% 30.8% • Proximity format sales grew by 71.9%. • Non-food sales growth of 36.7%, increased mix by 120 bps vs 1Q15. • Same-sto
Slide 17: 1Q16 Operational Results: Argentina
1Q16 Operational Results: Argentina Profitability driven by cost optimization and real estate positioning Argentina 1Q16 Millions of COP Net Revenues 350,769 Gross Profit 125,358 Gross Margin 35.7% SG&A Expenses 113,118 SG&A /Net Revenues 32.2% Recurring Operating Income 12,240 Recurring Operating m
Slide 18: Consolidated Operating Performance
Consolidated Operating Performance 1Q16 1Q15 Millions of Millions of 1Q16/15 COP COP Net Revenues 18,534,935 3,091,400 499.6% Gross Profit 4,236,720 781,801 441.9% Gross Margin 22.9% 25.3% SG&A expenses 3,897,675 661,586 489.1% SG&A/Net Revenues 21.0% 21.4% Recurring Operating Income 339,045 120,215
Slide 19: Group Share Net Income Result and Debt
Group Share Net Income Result and Debt Net Income affected by equity tax burden and financial expenses 1Q16 MCOP ROI 339,045 Debt at Holding Level Equity tax -52,462 Net financial result Colombia -100,764 Net financial result Brazil -263,482 Financial debt of 3.088 BnCOP and 450 Others 66,844 MUSD
Slide 20: Conclusions
Conclusions Solid positive trend in Colombia, Argentina and Uruguay with high profit evolution. Brazil reflected sales behaviour driven by food, despite current market conditions with clear commercial value-proposals and sequential improvement on non-food activities. Productivity and cost opti
Slide 21: Perspectives & Remarks
Perspectives & Remarks Expansion focus on successful and profitable trendy formats: cash & carry and proximity. Real Estate : New vehicle controlled by Éxito in fundraising process. 13 projects currently operating & 6 under structuring for a total 360,000 sqm of GLA. Current 800,000 sqm of
Slide 22: Note on Forward-Looking Statements
Note on Forward-Looking Statements This document contains certain forward-looking statements. This information is not historical data and should not be interpreted as guarantees of the future occurrence of such facts and data. These statements are based on data, assumptions and estimates that the Gr
Slide 23: Investor relations contact
www.grupoÉxito.com.co Éxitoinvestor.relations@grupo-exito.com Phone +574 3396560 •“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”.