Slide 1: Earnings Release 2nd Quarter 2023
EARNINGS RELEASE 2nd QUARTER 2023 July 27th, 2023
Slide 2: Customers flow increases 25% and highest market share with gains of +3.6 p.p.
CUSTOMERS FLOW INCREASES 25% AND HIGHEST MARKET SHARE WITH GAINS OF +3.6 p.p. Fast maturation of conversions and well-succeed expansion led to an EBITDA Margin of 7.0% CONVERSIONS PROJECT: ~90% CONCLUDED SALES: Sales growth boosted by conversions performance • 60 stores in 12 months: +34% in sales a
Slide 3: Conversions maturation advances with sales uplift of 2.5x
CONVERSIONS MATURATION ADVANCES WITH SALES UPLIFT OF 2.5x Conversions’ sales exceeds the Company's average, with an EBITDA margin of ~6%, with only 8 months of operation 2.5x Sales Uplift Average Monthly Sales per (vs. hyper) store (R$ Million) +9% 23.5 Sales uplift of 3.5x 21.6 considering only the
Slide 4: Commercial galleries will contribute for the conversions maturation
COMMERCIAL GALLERIES WILL CONTRIBUTE FOR THE CONVERSIONS MATURATION Increase in Customer traffic, dilution on rental expenses and occupancy costs +220 thousand sqm of gross leasable area +1,300 tenants Revenues (R$ Million) R$ 44.0 50% of the galleries to be concluded R$ 22.0 1H22 1H23 Conversion: M
Slide 5: Profitability supported by conversions maturation and commercial dynamics
PROFITABILITY SUPPORTED BY CONVERSIONS MATURATION AND COMMERCIAL DYNAMICS Adjusted EBITDA reached R$ 1.1 billion with margin of 7.0%, even with 35% of the store network in maturation Adjusted EBITDA (R$ Million) +R$ 135M +R$ 334M 1.113 2.064 978 1.730 2Q22 2Q23 1H22 1H23 EBITDA 7.4% 7.0% 7.0% 6.6% M
Slide 6: Efficient working capital management results in R$ 5.4Bn of cash generation
EFFICIENT WORKING CAPITAL MANAGEMENT RESULTS IN R$ 5.4Bn OF CASH GENERATION Financial Result affected by high interest rates and higher volume of debt to support expansion Financial Result Cash Generation – 12 months (R$ Million) Net Debt (2) ND/EBITDA (3) Jun-22 R$ 7.9 bn -2.72x -628 -1,258 Operati
Slide 7: Net income improved when compared to 1Q23
NET INCOME IMPROVED WHEN COMPARED TO 1Q23 Consistent operating performance affected by high interest rates Net Income 2Q23 (R$ Million) R$ 156 Million Net Margin: 1.0% Net Income 1H23 (R$ Million) R$ 228 Million Net Margin: 0.7% OPERATIONAL PERFORMANCE IMPACT ON RESULTS Fast maturation of converted
Slide 8: Commitment to diversity and equality for all
COMMITMENT TO DIVERSITY AND EQUALITY FOR ALL Advances in the ESG strategy and continuity in building an inclusive society INTEGRATED TACKLING TRANSFORMATION ENGAGING WITH VALUING MANAGEMENT AND CLIMATE CHANGE IN THE VALUE CHAIN SOCIETY OUR PEOPLE TRANSPARENCY ➢ -5.5% in emissions of scope 1(1) e 2(2
Slide 9: Q&A
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Slide 10: Thank you
THANK YOU Investor Relations team ri.assai@assai.com.br ri.assai.com.br