Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Investor Presentation (March 2019)
62 slides from Almacenes Exito Sa's investor presentation, March 2019
Slide 1: Corporate Presentation March 2019
Corporate Presentation March 2019 1 “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. 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 3: Content
Content • Grupo Exito Overview ……………………………………………………. 5 • Synergy Process ………………………………………………………… 11 • Key Facts by Country: o Colombia ………………………………………………………......... 17 o Brazil …………………………………………………………………. 33 o Uruguay ……………………………………………………………... 34 o Argentina …………………………………………………………..... 35 o 2019 Out
Slide 4: Grupo Éxito: The Omni-Channel Retail Leader in South America
Grupo Éxito: The Omni-Channel Retail Leader in South America Grupo Éxito is one of the largest multinationals in Colombia and a relevant food retailer in South America. The Company has clear competitive advantages derived from its strength in bricks and mortar and the value of their brands, supporte
Slide 5: Company Overview
QrupO Company Overview
Slide 6: Successful Integrations Drive Growth
Successful Integrations Drive Growth Acquisition of Alliance with Acquisition of Viva Malls Puntos Colombia Acquisition of Acquisition of International Alliance with Alliance with expansion control in Bancolombia Market share FIC gains in Bogotá to Uruguay Acquisition of Acquisition of 100e % in Lea
Slide 7: Grupo Exito Overview
Grupo Exito Overview Leader food retailer in South America with presence in 4 countries Leads modern retail segments: #1 in Colombia and Uruguay and co-leader in Brazil Solid omni-channel strategy Multi-format and multi-brand proposal Consolidated Net Revenues of COP$55.03 billion in 2018
Slide 8: Grupo Éxito Overview
Grupo Éxito Overview As of Dec 31, 2018 Total Sales (M COP) 10,626,527 39,809,809 2,544,430 1,036,864 54,009,077 Recurring EBITDA 651,796 2,610,737 198,127 45,660 3,506,620 EBITDA margin 5.8% 6.5% 7.7% 4.1% 6.4% Local Market share 42% (1) 14.5% (2) 44% 15% N.A. Stores 554 863 (3) 89 27 1.533 Real Es
Slide 9: Our Business Model
Our Business Model Strong retail traffic, omnichannel strength and asset monetization B2B Retail New customer with Revitalizing our light investment formats and stores Complementary Customers Omnichannel Business Innovation across Diversifying our formats and businesses revenue’s streams Traffic mon
Slide 10: Comprehensive Coverage of Customers
Comprehensive Coverage of Customers Brands & Formats covering all segments of the population Colombia Brazil Uruguay Argentina High End 6 5 4 3 2 1 Low End 10
Slide 11: Synergy Process
QrupO Synergy Process 11
Slide 12: Synergies Snapshot 2015-18
Synergies Snapshot 2015-18 Recurrent gains reached by Grupo Éxito became the largest retailer in SA after acquiring year at the Consolidated level GPA and Libertad. 2015 Redefinition of the Corporate Structure Accenture, UDS$5 M consulting and identification of synergies. 15 joint projects to
Slide 13: Synergies Follow-up – Joint Negotiations
Synergies Follow-up – Joint Negotiations Food & Non Food Goods & Services 930 33 USD 42.7 M 36 USD 107 M Containers Categories Joint purchases Categories negotiated Joint purchases negotiated Most important category: Most important category: Fruits cleaning services Consolidated purchasing power in
Slide 14: Synergies Follow-up - Format Replication
Synergies Follow-up - Format Replication Cash & Carry FreshMarket +10 Stores opened in 2018 León XIII - Col 18 Stores in country 20 stores growing +7 pp +27 vs other stores 2.0x Stores opened in 2018 15 stores growing +5 pp Sales multiplier vs other stores vs previous banner 6 stores growing +11 pp
Slide 15: Synergy Plan – Next steps
Synergy Plan – Next steps Moving from sharing best practices to building together future initiatives On innovation Omnichannel experience Check-out solutions, customer journey improvement… Improvement of Channels and Formats E-commerce, premium formats, proximity, Cash & Carry, WOW, FreshMarket… Inn
Slide 16: Key Facts by Country
QrupO Key Facts by Country 16
Slide 17: Formats & Channels in Colombia
Formats & Channels in Colombia Supermarkets & 99 stores Convenience stores A pleasure for Best in Fresh & Imported everyday Premium products Top Experience Cash and Carry 18 stores Hypermarkets, 252 stores Supermarkets & Convenience stores Value for Money At your service Customer Service F
Slide 18: Clear Competitive Positioning
Clear Competitive Positioning Strategic plan o Brick & mortar Omni-channel focused on profitable o E-commerce expansion, new formats and innovation o Cash & Carry Innovative formats o Aliados o Fresh Market o Real estate & Viva Malls Traffic monetization o Complementary businesses o Puntos Colombia
Slide 19: FY18 Growth Leverage Activities in Colombia
FY18 Growth Leverage Activities in Colombia Innovative Commercial Strategies Éxito WOW Carulla FreshMarket A shopping experience connected to the digital An innovative model offering differentiated, world. healthy and sustainable options Exito WOW, Country Bogotá Carulla San Lucas – Medellín 2 s
Slide 20: Innovative Commercial Strategies in Colombia
Innovative Commercial Strategies in Colombia Fresh Products area Pet World Dermo-cosmetics zone 20
Slide 21: Innovative Commercial Strategies in Colombia
Innovative Commercial Strategies in Colombia Co-working Zone Textile and Home Omni-channel Integration Digital and Gamming universe 21
Slide 22: Innovative Commercial Strategies in Colombia
Innovative Commercial Strategies in Colombia 22
Slide 23: Innovative Commercial Strategies in Colombia
Innovative Commercial Strategies in Colombia
Slide 24: Innovative Commercial Strategies in Colombia
Innovative Commercial Strategies in Colombia Depuis un an, la filiale colombienne de Casino teste un étonnant concept de supermarché urbain très premium, Carulla FreshMarket. Les produits frais et équitables, le vrac, la restauration, le local et le fait-sur-place y sont rois. LSA, regards to Carull
Slide 25: FY18 Growth Leverage Activities in Colombia
FY18 Growth Leverage Activities in Colombia Cash & Carry format successfully addressing profesional customers • Model adapted from GPA´s Assaí brand • Presence in Bogotá and the Atlantic Coast • Profitable expansion with positive EBITDA since year 1 • Low operating costs and Capex Optimización • Str
Slide 26: Innovative Commercial Strategies in Colombia
Innovative Commercial Strategies in Colombia
Slide 27: FY18 Growth Leverage Activities in Colombia
FY18 Growth Leverage Activities in Colombia Omni-channel, the strongest platform in LatAm with a sales share of 3.4% E-commerce Market place 11.5% Sales growth 1.1K vendors 61 M visits 54.6% GMV* growth Last Mile Digital catalogs +171.9% delivery growth At 155 stores 5.5% sales growth Sales share
Slide 28: Viva Malls, the First Real Estate Commercial Operator in Colombia
FY18 Growth Leverage Activities in Colombia Viva Malls, the First Real Estate Commercial Operator in Colombia Real Estate Business Viva Envigado 138k sqm of GLA(1) (+79k sqm in 2018) The largest commercial and business complex Contributed with around one third of the other operating revenue
Slide 29: Traffic Monetization in Colombia
Traffic Monetization in Colombia
Slide 30: Traffic Monetization in Colombia
Traffic Monetization in Colombia
Slide 31: Loyalty Program Puntos Colombia
FY18 Growth Leverage Activities in Colombia Loyalty Program “Puntos Colombia”, the largest ecosystem of points in the country • Launched in 2H18 in alliance with Average ticket with points Bancolombia has grown +76% vs 2017 • High potential for data Redemption has monetization: increased over 80% si
Slide 32: Traffic Monetization: Complementary Businesses
Traffic Monetization: Complementary Businesses Insurance Money transfer Financial Retail Over 1 million 2.7 million cards +15.6 million customers issued transactions Travel Mobile phone business +320.000 1.2 million lines clients 32
Slide 33: Formats & Brands in Brazil
Formats & Brands in Brazil Leading the most trendy formats, Premium and 298 stores Cash and Carry Hyper & Super Targeting Families 235 stores Cash & Carry Proximity 144 stores Mini Mercado Extra & Minuto Multi-business Strategy Pão de Açúcar Low Operating Costs & Competitive Prices 186 s
Slide 34: Formats & Brands in Uruguay
Formats & Brands in Uruguay Profitable operation driven by a differentiated value proposition 29 stores Supermarkets 58 stores Supermarkets & Proximity stores • Leaders in proximity with Devoto Express stores. • Pioneering the Fresh Market concept in the region, 2 stores for a differentiated buying
Slide 35: Formats & Brands in Argentina
Formats & Brands in Argentina Third real estate player in Argentina 15 stores Hypermarkets Libertad stores: Mini Presence in 9 states 12 stores • Expansion in convenience. Convenience and Premium Formats • First shopping center operator outside Buenos Aires with 170K sqm of GLA. • Dual model retail-
Slide 36: Summary Strategies by Country
Summary Strategies by Country Ongoing Strategies in Colombia Ongoing Strategies in Brazil Activities to drive • “Fresh Market” model implementation Activities to • Operational Excellence Program performance • Exito Wow model implementation. drive • “Textile model“ implementation at • “Unbeatable” pr
Slide 37: 2019 Outlook
2019 Outlook Colombia Retail expansion of 18 to 20 stores (from openings, conversions and remodelling), including at least 5 Exito WOW, 5 Carulla FreshMarket and 10 Surtimayorista stores. Revenue growth from retail and complementary businesses (mainly related to Real Estate contribution). Over
Slide 38: Ownership, Management and Shareholder Structures
Ownership, Management and Shareholder Structures 38
Slide 39: Ownership Structure
Ownership Structure International ownership structure consolidates best in class LATAM retail platform 55.3% 18.70% / 50% 18.70% / 50% 100% 100% 62.5%* % Economic rights % Voting rights * Grupo Exito consolidates Grupo Disco since January 1st, 2015 Figures as of Dec 31, 2018. 39
Slide 40: Management Structure
Management Structure Colombia Brazil Uruguay CEO CEO GPA General Manager Carlos Mario Giraldo Peter Estermann Luis E. Cardoso CFO & Corporate Devoto President Guillermo Destefanis Services Carlos Mario Diez Christophe Hidalgo Assaí CFO Belmiro Gomes Manfred Gartz Int Business VP Argentina José Gabri
Slide 41: Grupo Éxito Ownership Structure
Grupo Éxito Ownership Structure BVC: EXITO ADR 144: ALAXL 41
Slide 42: Sustainability and Corporate Governance
Sustainability and Corporate Governance 42
Slide 43: Sustainable Strategy
Sustainable Strategy Generation and dissemination Sicangourses gencero Seas Wo recogaized the aman potentiate the talent The success »f Grupo Exito is We are atteactive, “diverse an i Inclusive in their people Sustainable strategy mi Encouraging a healthy lifestyle planeta Resource efficiency Solid
Slide 44: Corporate Governance Standards
Corporate Governance Standards Exito commits to continuously improving and advancing on Corporate Governance Standards Comprehensive review of the Corporate Governance Code and the Transparency Adoption of Corporate Program in 2017 and improvements applied in 2018. Governance Standards in Adopti
Slide 45: Appendixes
QrupO Appendixes 45
Slide 46: Financial Results
QrupO Financial Results 46
Slide 47: 2018 Outlook
2018 Outlook Colombia Retail expansion of 12 to 15 stores (+20k sqm of gross sales area), including 8 Surtimayorista stores. Fresh Market concept at 5 stores and best performing initiatives to be rolled out at Carulla stores. SG&A expenses to grow below CPI, benefitted by ongoing productivity
Slide 48: Strong Net Income Growth from Productivity and Innovation
Strong Net Income Growth from Productivity and Innovation FY18 Net Revenue Recurring EBITDA Net Income Highlights + 8.9%(2) Margin +40 bps + 28.3% 5.7% (1) Financial Highlights: Strong Consolidated Net Revenue growth (10.2% (2) in 4Q and 8.9% (2) for 2018). Recurrent EBITDA margin grew by +51 bp
Slide 49: 4Q/FY18 Financial and Operational Highlights
4Q/FY18 Financial and Operational Highlights Financial Highlights: Consolidated CapEx COP $929,000 M during 4Q18 and COP $2.46 B for 2018 (55% expansion). o CapEx Colombia: COP $411,000 M for 2018 (69% expansion including Viva Malls). Expansion Activities: Food Retail Expansion 4Q18:43 stores (2
Slide 50: 4Q/FY18 Consolidated Financial Results
4Q/FY18 Consolidated Financial Results Annual Net Sales growth of +8.6% (2) and Recurring EBITDA margin gain of 40 bps (1) Consolidated Income Statement 4Q18 4Q17 FY18 FY17 In COP M In COP M %Var In COP M In COP M %Var Net Sales 15,382,189 15,476,821 -0.6% 54,009,077 55,556,241 -2.8% Other Revenue 2
Slide 51: Group Share Net Result & Dividend Proposal
Group Share Net Result & Dividend Proposal Net Income improvement of 28.3% driven by an optimized structure The Net Income result in 2018 of COP $279,403 M compares to the COP $217,713 M obtained in 2017, from: Lower interest expenses from lesser rates in Bra (-50 bps to 6.5%) and Col (-50 bps to
Slide 52: FY18 Net Debt and Cash at the Holding Level
FY18 Net Debt and Cash at the Holding Level (1) Improvement from lower financial expenses and better distribution in consolidated indebtedness 1,620 1,886 Net Debt/Adjusted EBITDA ratio (2) Cash (& other At Holding Level assets) -1,889 Gross debt -2,508 (financial -3,775 liabilities & -4,128 warrant
Slide 53: 4Q/FY18 Conclusions
4Q/FY18 Conclusions • Net Sales growth in all countries (1). • Annual consolidated Recurring EBITDA margin gained 40 bps to 5.7% (2) despite a challenging macro and political environment in the region. • EPS grew by 28.3% in 2018 versus last year. • Net Debt/EBITDA ratios: 1.23x and 3.11x at the con
Slide 54: 4Q/FY18 Debt by Country and Maturity
4Q/FY18 Debt by Country and Maturity Net debt breakdown by country 31 Dec 2018, (millions of COP) Colombia Uruguay Brazil Argentina Consolidated Short-term debt 1,173,167 443,963 1,703,232 37,113 3,357,475 Long-term debt 2,895,570 - 4,419,625 - 7,315,195 Total gross debt (1) 4,068,737 443,963 6,122,
Slide 55: FY18 P&L and CapEx by Country
FY18 P&L and CapEx by Country Colombia Brazil Uruguay Argentina Consolidated In COP M FY18 FY18 FY18 FY18 FY18 Net Revenue 11,235,820 40,141,725 2,571,308 1,100,474 55,036,170 Gross Profit 2,803,217 9,391,076 868,617 385,100 13,444,560 % Net revenue 24.9% 23.4% 33.8% 35.0% 24.4% SG&A Expense -2,151,
Slide 56: FY18 SOTP Analysis
FY18 SOTP Analysis LTM net LTM recurring Net debt (Last Market Value of (in COP M) (1) LTM ROI (2) Éxito stake revenues EBITDA quarter) the Stake (3) Colombia 11,235,820 651,796 406,866 2,075,156 100% Brazil 40,141,725 2,610,737 1,923,609 2,396,248 18.7% 3,389,320,093 Uruguay 2,571,308 198,127 171,3
Slide 57: FY18 Consolidated Balance Sheet
FY18 Consolidated Balance Sheet Note: Data does include Via Varejo S.A., classified as held for sale. 57
Slide 58: FY18 Consolidated Cash Flow
FY18 Consolidated Cash Flow Summary Consolidated Cash Flow Statement Dec 2018 Dec 2017 % Var (In COP M) Profit (loss) 1,172,944 1,071,066 9.5% Adjustment to reconciliate Net Income 4,314,547 4,974,383 -13.3% Cash Net provided (used) in Operating Activities 3,888,393 2,722,484 42.8% Cash Net provided
Slide 59: 4Q/FY18 Holding P&L
4Q/FY18 Holding (1) P&L Income Statement Almacenes Éxito 4Q18 4Q17 FY18 FY17 In COP M In COP M 4Q18/17 In COP M In COP M FY18/17 Sales 2,964,333 2,921,800 1.5% 10,619,523 10,588,484 0.3% Other Revenue 114,774 96,440 19.0% 401,612 316,474 26.9% Net Revenue 3,079,107 3,018,240 2.0% 11,021,135 10,904,9
Slide 60: FY18 Holding Balance Sheet
FY18 Holding (1) Balance Sheet Holding Balance Sheet Dec 2018 Dec 2017 Var % (In COP M) Assets 15,663,349 15,962,702 -1.9% Current assets 3,914,728 3,273,274 19.6% Cash & cash equivalents 1,885,868 1,619,695 16.4% Inventories 1,398,724 1,111,981 25.8% Accounts receivable 218,109 189,750 14.9% Assets
Slide 61: FY18 Store Number and Sales Area
FY18 Store Number and Sales Area Number of Sales Area Banner by Country Stores (sqm) Colombia Éxito 252 628,593 Carulla 99 87,016 Surtimax 112 58,751 Super Inter 73 66,562 Surtimayorista 18 21,800 Total Colombia 554 862,722 Uruguay Devoto 58 39,886 Disco 29 33,421 Geant 2 16,411 Total Uruguay 89 89,
Slide 62: Investor Relations Contact
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