Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Q2 2023 Earnings Presentation
37 slides from Almacenes Exito Sa's earnings presentation, Aug 1, 2023
Slide 1: 2Q23 Financial Results Grupo Éxito
2Q23 Financial R esults Grupo Éxito The picture can't be displayed. The picture can't be displayed. “ 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 guarantee of its future occurrence . Grupo Éxito o
Slide 3: Agenda
The picture can't be displayed. ▪ DR Listing process ▪ ESG strategy ▪ Quarterly highlights ▪ Financial performance ▪ Conclusions and Q&A session Agenda 3
Slide 4: Listing Process
i noo Listing Process ADRs y BDRs
Slide 5: Potential for unlocking value and DR listing process update
Potential for unlocking value for Grupo Exito and its DR listing process shareholders update Resulting shareholding structure * Distribution of ~86% of Exito DR Listing update Float 0 shares held by GPA (96.52%) ais SOK * Transaction announcement (Sep 5/22) through ADRs and BDRs (both tier MS Im ; f
Slide 6: ESG strategy
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Slide 7: ESG initiatives and YTD results
Our people Zero Malnutrition • 59 , 719 food packages delivered to children and their families • Presence in 23 states Tons of material collected at the operation of fruit and vegetables are locally purchased and • Recognized by MERCO Talento as the best retail company to work for . • Terrazas Verde
Slide 8: Quarterly highlights
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Slide 9: Recurring EBITDA and net revenue highlights
Recurring EBITDA COP$395,391 M, +6.6%, 7.7% margin Net Revenue COP $ 5.1 B (+8.5% vs 2Q 22, +12.4% 1 ) Notes : ( 1 ) W hen excluding the non - VAT day effect of 390 bps . ( 2 ) Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect ( - 2 . 1 % and 0 . 6 % at top li
Slide 10: Financial Performance
Financial Performance 10
Slide 11: 2Q23 Top Line performance
2Q23 Top Line performance • Net Revenue +4.2%, boosted by real estate performance (+18.9%). • Sales + 3.6 % ( +9.0% 1 and SSS + 0.7 % (+ 6.1 % 1 ) boosted by FMGC (+9.7%), omni - channel (+ 5.8 %), and innovation (share +1.3 p.p.) offset by 5.4 p.p. when excluding the non - VAT day from the base. •
Slide 12: 1H23 Performance of innovative models in Colombia
1H23 Performance of innovative models in Colombia Increased share on Colombia sales from innovation in models ( 41.8%, +1.4 p.p. YoY) Expansion opportunities with accretive contribution to EBITDA and mid - term returns 35.3% (+203 bps vs 1H22) 61.1% (+40 bps vs 1H22) Share on Éxito Dz s sales Sales i
Slide 13: Innovative models: activities to penetrate mom&pops market
1H23 Performance of innovative models in Colombia Activities to penetrate mom& pops market (share of 33% of the total market*) 32.9% 59 stores Notes : * Source : Nielsen ( 1 ) Return on Investment calculated as additional EBITDAR/investment of stores over 13 months of operation after remodelled in 2
Slide 14: Omni-channel performance in Colombia
1H23 Solid sales growth (+9.7%), driven by the food Omni-channel* CASSIN) performance in Colombia 1H23 12.5% 26% ) A double-digit share on sales, despite two non-VAT days in the Share on sales Food sales growth base (15.4~ p.p) (+25% on a comparable basis?) Omni-channel sales and share on sales 12.8
Slide 15: Real estate: a hidden value to the share valuation
Real estate: a hidden value to the Company Dz s share valuation 1H23 Asset and traffic monetization in Colombia Real Estate Business The most important complementary business and contributor to margins 771 K sqm of GLA (33 assets ) Occupancy rate 96.6% (vs. 96.3% in 2 Q22) The picture can't be displa
Slide 16: Real estate coming project Viva Cartagena
Real estate coming project Viva Cartagena 1H23 Asset and traffic monetization in Colombia 16 Viva C artagena • First shopping resort in LatAm, to join activities between a touristic destination and a shopping center • # 1 high income housing development zone in Cartagena • 110 , 000 sqm of total are
Slide 17: Consumer credit environment and loyalty platform
The picture can't be displayed. The challenging consumer credit environment led to increased provisions, however, it Dz s showing early signs of improvement The picture can't be displayed. 2.0 M cards in stock #3 in cards issued 3.9 Bn COP loan portfolio The picture can't be displayed. The picture ca
Slide 18: 2Q23 Operating performance by country
Top line growth across countries and internally efficiencies partially offset by inflationary pressures on the cost/expense structure 2Q23 Operating performance by country GP : + 6 . 2 % , 22 . 7 % margin (+ 42 bps) reflected solid growth boosted by real estate and despite price investment and the i
Slide 19: Consolidated Operating Performance
Consolidated Operating Performance Solid gross margin gains across countries and efforts to increase productivity led to recurring EBITDA growth (6.6% in 2Q23; 7.8 % YTD, +12.1% in comparable basis 1 ) » Solid commercial performance in Uruguay and Argentina, despite inflationary pressures, drove Rec
Slide 20: Group share net result
Group share net result • Positive contribution of international retail operations (in LC) and Colombia (despite the non - VAT day effect), as well as the material positive variation of income tax . • Negative variations from : (i) higher financial expenses (interest rates 1 + 725 bps vs 2 Q 22 ), (i
Slide 21: 1H23 Leverage and cash at holding level
1H23 Leverage and cash at holding level 1 Free cash flow reached COP $92,000 M, a positive outcome amidst economic slow down and higher investment levels and a comparable basis • Dividends from subsidiaries continued to allow the Company’s investment requirements and payments to shareholders • Press
Slide 22: Conclusions & Q&A session
Conclusions & Q&A session 22
Slide 23: Conclusions
Conclusions • ADR and BDR spin - off completion expected by 3Q23. • D ouble - digit consolidated sales growth o n comparable basis 1 , in local currency in all three countries • R ecurring EBITDA grew in 2Q and 1H driven by gross margin protection across countries, despite inflationary pressures. •
Slide 24: Appendices
Appendices 24
Slide 25: Consolidated financial results
The picture can't be displayed. Consolidated financial results Note : Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect ( - 0 . 6 % and 1 . 4 % at top line in 2 Q 23 and 1 H 23 , and 3 . 4 % and 5 . 3 % at recurring EBITDA, respectively) . CVM EBITDA refers to
Slide 26: P&L and capex by country
The picture can't be displayed. P&L and capex by country Note : Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect ( - 0 . 6 % and 1 . 4 % at top line in 2 Q 23 and 1 H 23 , and 3 . 4 % and 5 . 3 % at recurring, respectively) . The Colombia perimeter includes t
Slide 27: Consolidated balance sheet
The picture can't be displayed. Consolidated balance sheet Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 27 in COP M Dec 2022 Jun 2023 Var % Assets 18,183,289 17,379,523 (4.4%) Current assets 5,947,863 5,519,330 (7.2%) Cash & Cash Equivalents 1,733,673 1,393,950 (19
Slide 28: Consolidated cash flow
The picture can't be displayed. Consolidated cash flow Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 28 in COP M Jun 2023 Jun 2022 Var % Profit 126,611 186,270 (32.0%) Operating income before changes in working capital 743,994 685,650 8.5% Cash Net (used in) Operati
Slide 29: Holding P&L
The picture can't be displayed. Holding P&L (1) ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries . 29 in COP M 2Q23 2Q22 % Var 1H23 1H22 % Var Net Sales 3,508,364 3,388,924 3.5% 7,140,696 6,711,814 6.4% Other Revenue 102,384 87,338 17.2% 208,356 216,413 (3.7%) Net Revenue 3,610,
Slide 30: Holding balance sheet
The picture can't be displayed. Holding balance sheet (1) ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries . 30 in COP M Dec 2022 Jun 2023 Var % Assets 14,761,545 14,295,227 (3.2%) Current assets 4,432,647 4,145,525 (6.5%) Cash & Cash Equivalents 1,250,398 920,148 (26.4%) Invent
Slide 31: Debt by country and maturity
The picture can't be displayed. 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 Pe
Slide 32: Store number and sales area
The picture can't be displayed. Store number and sales area Note : The store count does not include the 1 , 729 allies in Colombia . 32 Banner by country Store number Sales area (sqm) Colombia Exito 209 620,572 Carulla 106 88,447 Surtimax 76 30,314 Super Inter 59 56,907 Surtimayorista 59 50,582 Tota
Slide 33: Grupo Éxito strategic pillars
The picture can't be displayed. 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
Slide 34: ESG strategy
The picture can't be displayed. 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 allianc
Slide 35: Grupo Éxito's ecosystem
Grupo Éxito Dz s ecosystem Leading retail through innovation and integration of BU ´ s across a comprehensive ecosystem with strong synergies Unmatched digital penetration in the region Click & collect, digital catalogues, , WhatsApp and Clickam Over 1,000 vendors #1 food retailer, high margins and s
Slide 36: 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
Slide 37: i exto
i exto