Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Investor Presentation (2022)
53 slides from Almacenes Exito Sa's investor presentation, 2022
Slide 1: Corporate Presentation 2021
Corporate Presentation 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 guarantee of its future occurrence. Grupo Éxito operate
Slide 3: Content
Content • Ownership, Management, Board and Shareholder Structure 5 • Grupo Éxito Overview & Strategy 2022-24 10 • Key Facts Colombia 23 • Key Facts International Operations 35 • Appendixes & Financial Results 2021 38 3
Slide 4: Grupo Éxito: A History of Innovation
Grupo Éxito: A History of Innovation Grupo Éxito is the leading food retail platform in Colombia and in Uruguay and has a relevant presence in the north-east of Argentina. The Company´s great capacity to innovate, has allowed it to transform and adapt quickly to new consumer trends and increased its
Slide 5: Ownership, Management and Shareholder Structures
Ownership, Management and Shareholder Structures
Slide 6: Ownership Structure
Ownership Structure International ownership structure consolidates best in class LATAM retail platform 41,2 % 100% (CBD) GPA2 91.57% Empreendimentos E Participacoes Ltda 5% 100% 100% 62.5%* * Grupo Éxito consolidates Grupo Disco since January 1st, 2015 6 Information as of Dec 31, 2021
Slide 7: Management Structure
Management Structure Experienced top management Colombia Carlos Mario Giraldo Jacky Yanovich Ruy Souza Juan Lucas Vega José Gabriel Loaiza CEO COO CFO Real Estate VP Omni-channel and Innovation VP Uruguay Argentina Director General Tijeras Jean Christophe Asistente Director Jean Christophe Tijeras R
Slide 8: Board of Directors 2022-24
Board of Directors 2022-24 Ratified at the GSA held on March 24, 2022 Luis Fernando Alarcón (Chairman) Felipe Ayerbe M Ana María Ibáñez Independent Members Member since June 11, 2015 October 11, 2010 March 20, 2014 Philippe Bernard Christophe José Rafael Ronaldo Iabrudi Susy Midori Alarcon Petit Hid
Slide 9: Shareholders´ Structure
Shareholders´ Structure Ownership structure as of Dec 31, 2020 Ownership structure as of Dec 31, 2021 0,09% ADRS 0,09% ADRS 0,35% Colombian Pension Funds 0,12% International Funds 0,67% International Funds 0,66% Colombian Pension Funds 2,32% Others 2,56% Others 5,00% GPA 2 Empreendimentos Companhia
Slide 10: Company Overview and Strategy 2022-24
Company Overview and Strategy 2022-24
Slide 11: Grupo Éxito Investment Highlights
Grupo Éxito Investment Highlights Leading food retail Comprehensive Pioneering Well-established platform in Colombia ecosystem, relevant innovation with new omni-channel and Uruguay complementary models and private platform and digital businesses and label capabilities monetization strategies Leader
Slide 12: Track Record of Successful Integrations
Track Record of Successful Integrations Puntos Colombia Acquisition of Alliance with Acquisition of . Éxito´s 70th anniversary Control in in alliance with Bancolombia . .Launch of the Digital Transformation Strategy Acquisition of . Éxito sold its stake in GPA to Casino Group Became the largest Mark
Slide 13: Grupo Éxito, an absolute food retail market leader in Colombia and Uruguay
Grupo Éxito, an absolute food retail market leader in Colombia and Uruguay Leading market position, with a comprehensive coverage of markets 1 1 #1 Food Retailer COP $16.9 billion COP $1.5 billion – 9.1% margin #1 Food e-commerce 620 stores across the region Consolidated Net Revenue Recurring EBITDA
Slide 14: Comprehensive Coverage of Customers and Markets
Comprehensive Coverage of Customers and Markets Brands and formats tailor-made to all segments of the population 6 Premium 5 4 Mainstream 3 2 Low-cost 1 14
Slide 15: 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, +130 allied #1 shopping brands and 5.5 M clients mall operator Multi-banner and in Colombia multi-format retail structure #3 real
Slide 16: Grupo Éxito Strategic Pillars
Grupo Éxito Strategic Pillars Leading transformation by focusing on customer and key retail trends Omni-client Our people 4. Asset / Traffic 1. Innovation 2. Omni-channel 3. Digital Transformation 5. ESG Monetization ▪ Models & Formats ▪ E-commerce ▪ Apps ▪ Loyalty Coalition ▪ Zero malnutrition ✓ Pr
Slide 17: ESG Strategy
ESG Strategy Six pillars with clear purposes, strategic focus and contribution, aligned with Sustainable Development Goals Work towards the eradication Environmental protection Promote sustainable trade of chronic child malnutrition • Actions to manage climate practices in Colombia by 2030 change •
Slide 18: Consolidated financial & operating highlights
Consolidated financial(1) & operating highlights Solid net income growth (2.1x) and recurring EBITDA margin evolution (+99 bps to 9.1%) driven by a consistent customer-centered strategy FY21 SSS(2) +7.8% EBITDA margin Net Income Omni-channel Highlights (+16.0% in 4Q21) 9.1% (+99 bps) 2.1x (+134 bps)
Slide 19: Consolidated Financial Results
Consolidated Financial Results EBITDA margin gains (+99 bps) from a consistent customer-centered strategy focused on innovation, omni-channel and traffic monetization in COP M 4Q21 4Q20 % Var FY21 FY20 % Var Net Sales 4,996,844 4,173,671 19.7% 16,105,756 15,141,244 6.4% Other Revenue 245,825 171,342
Slide 20: FY21 Conclusions
FY21 Conclusions Solid margins and net income gains from a consistent customer-centered strategy LatAm platform ▪ Strong recovery trend across countries, mainly during 2H21, drove annual results and has remained along 1Q22 ▪ Top line boosted by omni-channel, innovation and traffic monetization ▪ Sol
Slide 21: 2021 Outlook vs. Outcome
2021 Outlook vs. Outcome Expected targets disclosed to the market fully achieved Outlook 2021 Outcome 2021 . Revenue growth from dynamism of omni-channel and gradual recovery of . Revenue grew by 7.0% (retail sales +5.5% and complementary businesses +38.7%) complementary businesses. . Recurring EBIT
Slide 22: 2022E Outlook
2022E Outlook • Top line growth benefited by innovation, omni-channel and complementary businesses • To maintain Recurring EBITDA levels at consolidated level considering inflationary pressures on expenditure • Omni-channel to represent a high-single digit share on consolidates sales • Expansion(1)
Slide 23: Key Facts Colombia
Key Facts Colombia ent)
Slide 24: Growth Leverage Activities in Colombia: Brick and Mortar
Growth Leverage Activities in Colombia: Brick and Mortar Brands Formats Hypers, Supermarkets & Supermarkets & Low-cost stores Cash and Carry Convenience Convenience Value for Money Best in Fresh- premium B2B and B2C Where buying costs less Value proposition High quality customer service products Low
Slide 25: Growth Leverage Activities in Colombia: Innovation
Growth Leverage Activities in Colombia: Innovation Improved sales levels and accretive growth after conversion into innovative models Wow and FreshMarket 16.5% share Private Label Éxito Wow: Innovation in Hypermarkets on total sales Food categories 19 stores Taeq The best merge of The only healthy p
Slide 26: Innovation in models & formats 2021
Innovation in models & formats 2021 A 15.6% share of the low-cost segment on Colombia sales, boosted by Cash and Carry A profitable wholesale format 36 stores Strong App Sales +25.2%, LFL+24.4% in 2021 contribution 47.7% share on total banner sales (13.8% share on banner´s sales) Club del Comerciant
Slide 27: Éxito Wow
Éxito Wow Fresh Products area Co-working Zone Pet World Digital and Gamming universe Derma-cosmetics zone Omni-channel Integration 27
Slide 28: Carulla Fresh Market
Carulla Fresh Market Smile ID 28
Slide 29: Surtimayorista
Surtimayorista surti MAYORISTA
Slide 30: Growth Leverage Activities in Colombia: Omni-channel
Growth Leverage Activities in Colombia: Omni-channel There is no other Latin American player with such omni-channel penetration as Grupo Éxito in Colombia FY21 Total Sales Share on sales (2) Orders Highlights COP $1.5 Bn (+0.3%) 11.9% (vs. 12.5% in 2020) 7.8 M (-8.6%) Unmatched omni-channel penetrat
Slide 31: Innovation in digital activities 2021
Innovation in digital activities 2021 Enhancing the omni-channel strategy and boosting sales Turbo 10 minutes WhatsApp service • Available at 320 stores • Share of food 22% (+792 bps) and non-food 14.9% (+569 bps) • 67% penetration of WhatsApp in Colombia • Sales of USD 70 M(1) (1.6x vs 2020) • 17.8
Slide 32: Asset and Traffic Monetization
Asset and Traffic Monetization Financial Retail and Loyalty coalition Financial Retail Puntos Colombia A winning partnership between the • +431,000 cards issued largest retailer and bank in Colombia • 2.8 M cards in stock (+2.4%) 5.5 M active clients(1) (+17.3%) • Loan portfolio of COP $3.6 B (+19%)
Slide 33: Asset Monetization: Real Estate Business
Asset Monetization: Real Estate Business Viva Malls increased revenue and high occupancy rates in 2021 Real Estate Business ✓ The largest shopping mall operator in Colombia ✓ Viva Online the first Colombia e-commerce Joint venture with F.I. Colombia platform for real estate tenants (Exito owns 51%)
Slide 34: ESG Strategy Follow-up FY21
ESG Strategy Follow-up FY21 ESG initiatives to generate value: economic growth, social development and environmental protection Zero malnutrition My planet Sustainable trade ▪ 70,376 children benefited from • Carulla FreshMarket, the 1st retail • 90% of fruit and vegetables nutrition and complementa
Slide 35: Key Facts International Operations
Key Facts International Operations
Slide 36: International Operations: Uruguay
International Operations: Uruguay Strategic investment from a diversified portfolio in the region Omni-channel Éxito has the #1 presence in the most high-end market of LatAm ✓ 16% of Grupo Éxito total sales ✓ The most profitable operation with EBITDA margin above 10% ▪ devoto.com and geant.com growi
Slide 37: International Operations: Argentina
International Operations: Argentina Strategic investment supported on a real estate portfolio and a resilient retail business Real estate Dual Model: Retail-Real Estate business ✓ 7% of Grupo Éxito total sales ✓ 3rd real estate player in the country ✓ 25 stores in 9 provinces in the country (4 Fresh
Slide 38: Appendixes: Financial Results 2021
Appendixes: Financial Results 2021
Slide 39: Operating Results: Colombia
Operating Results: Colombia Top line growth above inflation diluted an optimized cost structure and led to annual EBITDA margin gains (+136 bps) in COP M 4Q21 4Q20 % Var FY21 FY20 % Var Net Sales 3,827,521 3,330,661 14.9% 12,284,397 11,642,685 5.5% Other Revenue 219,648 158,410 38.7% 748,426 539,587
Slide 40: Net Sales & SSS performance in Colombia
Net Sales (1) & SSS (1) performance in Colombia Strong quarterly growth and annual performance above inflation favoured by innovation, omni-channel and commercial dynamics 4Q21 12M21 Low-cost Low-cost & Other(2) & Other(2) Variations SSS (1) 15.0% 15.0% 9.7% 21.8% 6.8% 7.2% 1.1% 11.4% Total (1) 14.9
Slide 41: Performance by segment in Colombia
Performance by segment in Colombia A clear recovery trend versus last year and pre-pandemic levels Éxito: Carulla: Low-cost & Other(1): • 19 Éxito WOW in 2021 (+8) • 22 FreshMarket in 2021 (+8) • Sales +20.3%, LFL +21.8% in 4Q21 (inc. CE • Non-food category boosted by the 3 • 15.8% omni-channel shar
Slide 42: Omni-channel Colombia Follow-up FY21
Omni-channel Colombia Follow-up FY21 374 MUSD(3) in sales and a consistent double-digit share on total sales (11.9%) in 2021 E-commerce Click & Collect ✓ $517k M in sales ✓ Sales +23.5% ✓ 155 M visits ✓ Orders reached 1.4M ✓ 1M orders ✓ 28% share on omni- channel GMV(4) Apps Marketplace ✓ 1.6 M down
Slide 43: Operating Results: Uruguay
Operating Results: Uruguay Efficiency gains and an improved consumption trend by year-end favoured high EBITDA margin levels (10.2%) in COP M 4Q21 4Q20 % Var FY21 FY20 % Var Net Sales 744,900 686,492 8.5% 2,643,858 2,654,336 (0.4%) Other Revenue 10,153 9,679 4.9% 28,535 28,325 0.7% Net Revenue 755,0
Slide 44: Operating Results: Argentina
Operating Results: Argentina EBITDA margin +156 bps thanks to better commercial dynamics, real estate re- activation and productivity gains in COP M 4Q21 4Q20 % Var FY21 FY20 % Var Net Sales 424,655 157,045 170.4% 1,178,166 847,060 39.1% Other Revenue 16,257 3,369 382.5% 40,303 27,153 48.4% Net Reve
Slide 45: 4Q/FY21 Consolidated Financial Results
4Q/FY21 Consolidated Financial Results in COP M 4Q21 4Q20 % Var FY21 FY20 % Var Net Sales 4,996,844 4,173,671 19.7% 16,105,756 15,141,244 6.4% Other Revenue 245,825 171,342 43.5% 816,629 594,595 37.3% Net Revenue 5,242,669 4,345,013 20.7% 16,922,385 15,735,839 7.5% Cost of Sales (3,824,641) (3,186,0
Slide 46: FY21 P&L and Capex by Country
FY21 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M FY21 FY21 FY21 FY21 Net Sales 12,284,397 2,643,858 1,178,166 16,105,756 Other Revenue 748,426 28,535 40,303 816,629 Net Revenue 13,032,823 2,672,393 1,218,469 16,922,385 Cost of Sales (9,856,679) (1,746,123) (8
Slide 47: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2020 Dec 2021 Var % in COP M Dec 2020 Dec 2021 Var % Assets 15,649,974 16,901,179 8.0% Liabilities 8,245,701 8,872,702 7.6% Current assets 5,265,996 5,833,360 10.8% Current liabilities 6,422,947 6,518,400 1.5% Cash & Cash Equivalents 2,409,391 2,541,579 5.5% T
Slide 48: Consolidated Cash Flow
Consolidated Cash Flow in COP M Dec 2021 Dec 2020 Var % Profit 592,937 329,902 79.7% Adjustment to reconciliate Net Income 1,342,374 1,046,604 28.3% Cash Net (used in) Operating Activities 1,138,587 630,301 80.6% Cash Net (used in) Investment Activities (571,021) (273,926) N/A Cash net provided by F
Slide 49: Debt by Country and Maturity
Debt by Country and Maturity Net debt breakdown by country 31 Dec 2021, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 203,001 235,528 520,924 19 756,471 Long-term debt 742,084 742,084 - - 742,084 Total gross debt (1) 945,085 977,612 520,924 19 1,498,555 Cash a
Slide 50: 4Q/FY21 Holding P&L
4Q/FY21 Holding(1) P&L in COP M 4Q21 4Q20 % Var FY21 FY20 % Var Net Sales 3,828,277 3,329,904 15.0% 12,290,994 11,649,896 5.5% Other Revenue 138,383 97,579 41.8% 478,388 312,444 53.1% Net Revenue 3,966,660 3,427,483 15.7% 12,769,382 11,962,340 6.7% Cost of Sales (3,040,326) (2,636,146) 15.3% (9,844,
Slide 51: Holding Balance Sheet
Holding(1) Balance Sheet in COP M Dec 2020 Dec 2021 Var % in COP M Dec 2020 Dec 2021 Var % Assets 13,468,080 14,422,470 7.1% Liabilities 7,264,217 7,541,065 3.8% Current assets 4,309,539 4,686,474 8.7% Current liabilities 5,310,807 5,137,135 (3.3%) Cash & Cash Equivalents 1,969,470 2,063,528 4.8% Tr
Slide 52: Store Number and Sales Area
Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 233 620,465 Carulla 101 87,285 Surtimax 72 30,989 Super Inter 61 58,680 Surtimayorista 36 34,870 Total Colombia 503 832,289 Uruguay Devoto 60 40,231 Disco 30 35,252 Geant 2 16,411 Total Uruguay 92 91,894 Argen
Slide 53: María Fernanda Moreno R. Investor Relations Director
María Fernanda Moreno R. Investor Relations Director +574 6049696 Ext 306560 maria.morenorodriguez@grupo-exito.com Cr 48 No. 32B Sur – 139, Av. Las Vegas Envigado, Colombia www.grupoexito.com.co exitoinvestor.relations@grupo-exito.com •“The Issuers Recognition -IR granted by the Colombian Stock Exch