Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Investor Presentation (2023)
135 slides from Almacenes Exito Sa's investor presentation, 2023
Slide 1: Grupo Éxito Corporate Presentation
Grupo Éxito Corporate Presentation Updated as of 2Q23
Slide 2: Disclaimer
Disclaimer The following material is a Presentation of general background information about Almacenes Éxito S.A. (the “Company”). The information contained herein is a summary and does not pretend to be complete information about the Company. This Presentation has been prepared solely for informatio
Slide 3: Listing Process
Listing Process ADRs y BDRs 3
Slide 4: Potential for unlocking value for Grupo Éxito and its shareholders
Potential for unlocking value for Grupo Éxito and its shareholders GPA owns ~97% of Éxito 1 A Current shareholding structure B Resulting shareholding structure Market capitalization (B USD) Floatin 1.5 Casino g Casino Floating 41% 59% 41% 59% New 1.2 floating (CBD) 100% (CBD) GPA2 ~53% ~34% Empreend
Slide 5: Illustrative timeline of the Transaction
Confidential Illustrative timeline of the Transaction 1 Transaction announcement September 5, 2022 2 BDR filing approval, CVM and B3 authorized enrollment April 4, 2023 3 ADR program – 20F becomes effective July 25, 2023 4 Colombian Superintendency of Finance (SFC) share transfer approval August 8,
Slide 6: Conversion Process: Deposit certificates
Conversion Process Deposit certificates Investor T+0 Letter of instruction requesting creation or cancellation of DRs Instruction letter to create or cancel DRs T+1 Broker Local custodian Order to create or cancel DRs Creation or cancellation of DRs and change of custodian T+2 Broker Custodian bank
Slide 7: Macro and retail environments in Colombia
Macro and retail environments in Colombia 7
Slide 8: Colombia: Macroeconomic Indicators
Colombia: Macroeconomic Indicators Challenges: inflation and private consumption Country's economic growth outpacing LatAm and the Interest rate hike to contain inflation (pressured by food Caribbean trend 12M from 27.8% Dec/22 to 21.8% Mar/23) PIB Colombia PIB Latam Inflation Inflación Interest Rat
Slide 9: Colombia: Retail Market Evolution and levels of formalization
Colombia: Retail Market Evolution and levels of formalization Market share1 Grupo Éxito (Traditional + Modern) Retail market evolution (B USD) CAGR 8.6% Average: 12.5% 28.4 12.7% 13.2% 12.4% 12.1% 12.0% 23.4 21.8 20.9 20.4 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Traditional market vs Moder
Slide 10: Grupo Éxito: Key Facts
Grupo Éxito: Key Facts 10
Slide 11: Management team
Management team Carlos Mario Giraldo José Gabriel Loaiza Ivonne Windmuller Chief Executive Chief Operating Chief Financial Officer Officer Officer Colombia Jorge Jaller Sebastian Perez Juan Lucas Vega VP of Retail VP of Omnichannel and VP of Real Estate Colombia Innovation 11
Slide 12: Grupo Éxito: leading retail platform in Colombia and Uruguay
Grupo Éxito: leading retail platform in Colombia and Uruguay Consolidated Colombia Results1 Revenue: COP$15.3 B EBITDA margin: 8.1% Market share3: 28% Share on Sales Revenue Stores: 492 COP $20.6 B (USD $4.9 B) 18% 9% Uruguay 73% Omnichannel share2 Revenue: COP$3.6 B 9.6% EBITDA margin: 9.9% Market
Slide 13: Brand segmentation by country
Brand segmentation by country Population pyramid coverage Premium Medium Low Segmentation by country 13
Slide 14: 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 15: Consistent business strategy
Consistent business strategy Customer-centric Leading retail platform in Leading Omnichannel platform Colombia and Uruguay in LatAm (9.6% of share1) ◼ Leadership and diversification ◼ Solid platform ◼ Highly recommended brands ◼ Strong digit ◼ Strong cash flow generation ◼ al penetration ◼ High-valu
Slide 16: 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 rea
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: Retail strategy, segments and private label
Retail strategy, segments and private label 18
Slide 19: Grupo Éxito Ecosystem
Ecosystem Grupo Éxito Retail Complementar y Business Colombia Omniclient 19
Slide 20: Retail segments Colombia
Retail segments Colombia Éxito Carulla Low Cost Brands Hypermarkets, Supermarkets & Trademarks Supermarkets & convenience Cash and Carry Proximity Supermarkets convenience Value Price/quality ratio Superior experience High share of private labels Focus on institutional All in one place The best fres
Slide 21: Market penetration levers
Market penetration levers Focus to drive food sales growth Opportunities in the Expansion of the Cash and Carry Price Strategy Last Mile Private Label traditional market model Market penetration Unbeatable portfolio and Acqua Project 13.3 M orders (+69.6% vs 2021) Best price in 213 subcategories Mod
Slide 22: Private Label: Food
Private Label Food 18.1% Share on food sales ~ 250 PLUs ~ 370 PLUs Flagship Brands 4.4% share 0.9% share +43% Sales +45% Sales ~ 130 PLUs ~ 570 PLUs 5% share First Price 1.5% share Multicategory +68% Sales +18% Sales Premium ~ 340 PLUs ~ 370 PLUs 1.5% share Healthy Life Brands 1.3% share +33% Sales
Slide 23: Private Label: Unbeatable Products
Private Label Unbeatable Products ▪ Basic and valuable products ▪ Price check twice a week ▪ Best price position ~ 590 SKU's • Éxito: Unbeatable portfolio 213 subcategories A strategy for • Carulla: The best price +35% in sales each • Surtimax: Max Cheap brand 8.8% share in food sales • Super Inter:
Slide 24: Private Label: Apparel
Private Label Apparel 43% of sales were Arkitect, People and Bronzini brands Fashion with social Our Health and Wellness sense New Casual Brands 9,600 jobs +48 M units Throughout Didetexco sold in 2022 ~ 28.2 M in Private Label 97% own-brand garments are 12 Collections manufactured in Colombia Sales
Slide 25: Private Label: Home
Private Label Home 35% Share of sales in the home category Portfolio of basic and Price/quality ratio functional products for Focus on functionality home spaces, such as and design kitchen, living room, dining room and Value, innovation and bedroom design High quality and durability Sales 24% Trendy
Slide 26: Private Label: Electronics & Bazar
Private Label Electronics & Bazar Sales +23% Sales +COP$90,000 M 12.7% Omnichannel share 5% share on Electro digital's sales 452 PLU's 8 Categories Portfolio: large and small household appliances, audio and video, hardware, stationery and sport goods 26 Notes: Figures as of 2022.
Slide 27: Complementary business: Creation and shared value
Complementary business Creation and shared value Puntos Colombia Tuya Real Estate business The points program of major brands in Colombia Colombia's largest specialized The country's largest loyalty Banking as a service vehicle for the development and platform operation of commercial real estate spa
Slide 28: Complementary Businesses: Financial Retail and Loyalty Program
Complementary Businesses Creation and shared value Financial Retail Loyalty Program ◼ +161 partner brands ◼ Partnership 50/50 with Bancolombia ◼ 2.1 M of cards issued ◼ 6.2 M of active clients2 (+14%) ◼ Total portfolio of COP$4.5 B (+25.6% vs ◼ +35.6 M points 2021) redeemed (30% in allies) ◼ Tuya's
Slide 29: Complementary Businesses: Real Estate Business
Complementary Businesses Creation and shared value Real Estate Business ◼ #1 operator of shopping centers in Colombia ◼ VIVA Malls: Joint venture with FIC1 , 51% interest, 18 assets ◼ VIVA Malls accounted for 39.8% of other revenues and 13% of consolidated recurring EBITDA ◼ Recurrent EBITDA margin2
Slide 30: Éxito segment and Wow model
Éxito segment and Wow model 30
Slide 31: Éxito segment formats: Strategy and value proposition
Éxito segment formats Strategy and value proposition Super • Easy, fast and simple shopping (1,000 ~ 2,000 sqm) • FMCG products • Low non-food mix Neighbour • Proximity and a complete commercial proposal adapted to the area of influence (2,000 ~ 3,000 sqm) • Improved shopping experience and more com
Slide 32: Sales and Mix: Éxito vs Wow
Sales and Mix Sales +COP$10 bn Éxito vs Wow 56% 44% Food Non-food 209 stores 30 Wow stores in 2022, including in 2022 Wow model (+11 Y/Y) Hyper, Super and convenience share on Éxito´s 34,2% stores brand sales Price/quality relation (+49 bps vs 2021) ROI 1 62,4% High quality customer service Sales in
Slide 33: Value strategies by category: FMCG, Fresh, Apparel
Value strategies By category FMCG Fresh Apparel Éxito ~ 76,000 The best option for Direct purchase from Democratization omni- brand SKUs complete market farmers client of conscious Premium assortment, The freshest product fashion traditional brands and from well know origin Differentiating and priva
Slide 34: Value strategies by category: Electro, Bazar, Home
Value strategies By category Electro digital Bazar Home Impacting the daily life of Leading in the sale of Differentiated, Colombians through seasonal products functional and technology emotional assortment Offering everything in The best entertainment one place Strong sales at stores in products an
Slide 35: Éxito Wow
Éxito Wow Video: https://streamable.com/4f9puv 35
Slide 36: Éxito Wow: Food sections
Éxito Wow Food sections 36
Slide 37: Éxito Wow: Non-food sections
Éxito Wow Non-food sections 37
Slide 38: Carulla segment and Fresh Market model
Carulla segment and Fresh Market model 38
Slide 39: Carulla in numbers
Carulla In numbers # Stores 107 Flagship Supermarkets 81 Convenience 26 % Digital sales 17.4% # Employees ~ 4,600 Carulla Calle 140 (~2,100 sqm) • Superior service / Commercial Mix experience Value • Fresh and high-quality proposition products • Sustainability Sales area ~ 89,000 sqm Average sales S
Slide 40: Carulla: The freshest and healthiest life
Carulla The freshest and healthiest life Superior experience Innovation Sustainability Expert advice on core Commercial with Continuous work with Our categories and service exclusive products, a focus on hosts channels, and environmental impact value experience mitigation proposal Customer and busin
Slide 41: Carulla Customer loyalty
Carulla Customer loyalty › Carulla Cooking School # Clients ~ 2 million +8.7% vs 2021 +500,000 new customers 10% clients “phygital” 21% of users › Special days 37% visits Carulla +11 times a year Loyalty strategy at SuperCliente Carulla GREENS DIAMOND BLACK 28% of sales 36% of sales 36% sales 7 visi
Slide 42: Carulla Innovation strategies
Carulla Innovation strategies Commercial innovation Digital channels innovation Exlcusive brands Differentiation: World of • 95,000 active clients/month imported products and exclusive in all functionalities brands • Mi Descuento: Personalized coupons with supplier Sales +11% vs 2021 mainly driven m
Slide 43: Carulla: A premium sustainable brand
Carulla A premium sustainable brand Certified Ganso: Sustainable livestock 13% of sales derive from beef Carbon neutral Free of plastic bags In 2022, FreshMarket #1 carbon neutral food stores were certified by third consecutive year retailer in LatAm 30 certified stores #1 Food retailer in Colombia
Slide 44: First retail: Differentiation and freshness
First retail Differentiation and freshness Carbon Neutral Top 5 best stores Food Retailer in Green Market to visit in 2023 according to LatAm (Healthy nutrution) IGD1 30 Fresh Market stores in 9 cities of the country Digging of liquors 59.6% share on Carulla´s sales (+136 bps vs 2021) Sales +9.3 p.p
Slide 45: Carulla & Fresh Market: The most profitable segment and model
Carulla & Fresh Market The most profitable segment and model https://streamable.com/8k58fd Sales x sqm Sales breakdown 2020 2021 2022 › The highest sale/sqm: 25% increase vs the Company average › Superior retail margin › Sales/sqm +25% vs brands average › The highest EBITDA margin over 12% › EBITDA
Slide 46: Segment challenges: Carulla
Segment challenges Carulla Our challenges: Focus of growth › Accelerated and continuing innovation to guarantee the leadership on the premium retail segment 1. Optimize capex and increase returns › Maintain EBITDA levels given inflationary 2. Omnichannel acceleration of brand effects on expenses sal
Slide 47: Low-cost segment and Surtimayorista
Low-cost segment and Surtimayorista 47
Slide 48: Model and format innovation: Surtimayorista, Super Inter and Surtimax
Model and format innovation Surtimayorista, Super Inter and Surtimax Cash and Carry of proximity Supermarkets of independent origin Proximity supermarkets Low-cost value proposition, volume, high returns, focus on Low-cost value proposition Low-cost value proposition, high professional and final cli
Slide 49: Surtimayorista: Cash & Carry of proximity
Surtimayorista Cash & Carry of proximity Convenience / Competitive price Intelligent producto mix Fidelity proximity Low-cost Stores and Complete market for retail and Professional clients omnichannel professional clients Per unit and wholesale We reward the 46 stores in the loyalty of our country S
Slide 50: Surtimayorista: Where we are
Surtimayorista Where we are 5.2% share on Fresh 2022 sales Col sales sales growth Surtimayorista 43 15% +32.7% 4 3 Warehouses 2 2022 2021 sale M/sqm evolution $14 $17.5 3 Client indicators Transactions Clients Presence in 10 ~ 9.2 M ~ 1.1 M departments 33 Client visits Clients and 26 cities +4.5% +2
Slide 51: Video
Video: https://streamable.co m/tur4t2 51
Slide 52: Strategic partners and misurtii
Strategic partners and misurtii Focused on the traditional Focused on the channel and mom&pop´s traditional channel +USD 14 M sales +USD 52 M sales +14,000 active clients 1,671 Allies 2022/21 Sellers 324% Sales 172% 2022/21 Allies network 8% Orders 265% Sales 21% EBITDA 77% Footprint in 6 states in
Slide 53: Super Inter
roo Super Inter
Slide 54: Super Inter: Low-cost strategy
Super Inter Low-cost strategy Presence x region 4th most 4 departments and 17 cities Transactions Clients beloved retail 21.9 M 1.2 M Brand in Colombia Caldas Client According to Follow Risaralda indicators Brand, Invamer 9 8 Presence in all Client Clients socio-economic Valle del Cauca visits +17.3
Slide 55: Surtimax
Surtimax Thursdays - desde Mil Private Label 55
Slide 56: Surtimax: Low-cost strategy
Surtimax Low-cost strategy Presence x region 21 2 departments and 20 cities Transactions Clients Antioquia ~13 M ~ 1.4 M Client indicators Client Clients visits +8.1% +8.5% Omnichannel Fresh food Sales 49 sales sales growth Cundinamarca 2.5% 24.3% +12.9% Consolidation of new store model in 15 stores
Slide 57: Omnichannel strategy
Omnichannel strategy 57
Slide 58: Omnichannel strategy 2022 results
Omnichannel strategy 2022 results GMV 1,2 Stake in sales2 Orders MCOP $1.8 B 12.0% 13.3 M (+18.2% vs 2021) (vs 11.9% in 2021) (+69.6% vs 2021) Omni-channel sales and share on sales GMV ($) evolution and stake (%) • App of Misurtii: +164% in sales ~ COP $57,500 M 12.5% 12.0% • Turbo: 41.3% participat
Slide 59: Omnichannel strategy: Last mile evolution
Omnichannel strategy Last mile evolution Abate on delivery time due to greater store network Non-food: Objective 2021 2022 2023 Delivery time 4.8 days Delivery time 4.4 days Delivery time 3.3 days 52 notchs 69 notchs +15 Nods 200 Pick-up points 200 Pick-up points +100 Pick-up points 51% of orders ar
Slide 60: Omnichannel strategy: Constant innovation in our APP
Omnichannel strategy Constant innovation in our APP https://streamable.co m/ji2rd3 70,000 12,000 active users/day active users/day Personalization Personalization Upcoming Order tracker Last craving, Check & Go: A new from the lobby of products that way to buy in the APP client usually buys Carulla
Slide 61: Omnichannel strategy: Marketplace
Omnichannel strategy Marketplace Focus on high-quality services, nurturing opportunities for Colombian SMEs Technologic migration for NPS an European solution 45 YTD (+8 YoY) (go Live S2/23) Upcoming fulfillment ~1.600 active sellers service and (+22%) contributing internationalization of 209,000 of
Slide 62: Omnichannel strategy: Éxito Atendido
Omnichannel strategy Éxito Atendido Omnichannel integrator digitalizing more than 170 stores Sales +53% vs NPS 93 2021 (Best NPS between channels) Presence in more 79% of clients from than 172 stores the channel turn in to +400 advisors at a omni-clients national level 62 Notes: Figures as of 2022.
Slide 63: Innovation in digital services
Omnichannel Strategy Innovation in digital services Rappi Turbo Misurtii App Live a new experience when it comes to supply mom&pops business • Sales ~COP $225,000 M (15x vs 2021) • ~ 14,000 clients • +6 M orders • +164% Sales ~ COP$57,500 M • ~ 40% share on Rappi’s sales • ~ 27% share on partners sa
Slide 64: Real Estate Business / VIVA malls
Viva Laureles Real Estate Business / VIVA malls 64
Slide 65: Real Estate Business Grupo Éxito: We design, develop and operate assets
Real Estate Business Grupo Éxito We design, develop and operate assets •Project structuring Development •Asset development and redevelopment •Project Management •Marketing of premises and optimization of the commercial mix Management model: Leasing •Monetization of common areas (Casual Leasing and B
Slide 66: Our portfolio: A hidden value in Éxito share valuation
Our portfolio A hidden value in Éxito share valuation Real Estate Business¹ Viva Malls A solid structure formed by the largest banks and construction companies 51% 49% VIVA MALLS 18 assets A complementary business of greater relevance 568 ,000 m2 GLA and contribution to the Company's margins 100% 51
Slide 67: Viva Malls assets and leasable areas
Viva Malls 18 assets and 568,000 m2 of leasable areas In COP M 2022 2021 % Var Operating Revenue 344,920 288,858 19.40% Recurring EBITDA 220,344 182,980 20.40% EBITDA Margin 63.90% 63.30% 54 bps Secured leases with stable cash flows and hedge against inflation protect part of the company's EBITDA Vi
Slide 68: Viva Malls: the leading retail real estate fund in Colombia
Viva Malls: the leading retail real estate fund in Colombia Market share – 2.2 M m² GLA Market share in AUM – 28.3 Bn COP Planned Constructions; 3,1% Grupo Roble; 3,1% Corredores Davivienda; 3% BTG Pactual; 5% Único; 4,6% Sura AM; 5% Sonae Sierra; 5,0% Terranum, 7% La 14; 5,6% PEI; 30% Viva Malls; 3
Slide 69: World-class tenants
World-class tenants Flows secured with long-term contracts Main trading partners Viva Concepts +1,230 Business Partners Gastronomy Entertainment Sports Mobility 69 Notes: Data as of 2022.
Slide 70: Viva Malls Main indicators
Viva Malls Main indicators OCCUPANCY RATES *Millions of pedestrians TRAFFIC Var % -48% +36% +22% Var % +3 p.p. 100% 138.6 120.5 97% 98.6 98% 94% 94% 72.1 96% 92% 94% 92% 90% 88% 2019 2020 2021 2022 2019 2020 2021 2022 *k m² *Bn COP EBITDA GLA 2,6x Var % 80% +20% 1,000 900 50 220.344 60% 800 40 182.9
Slide 71: 2023 – 2026 Projects
2023 – 2026 Projects https://streamable.com/ydqx9l Under construction Under structuring IKEA PUERTA DEL NORTE (Medellín AM) (Medellín AM) ~ 17,000 sqm GLA ~ 30,000 sqm GLA 2024 71
Slide 72: Sustainability Strategies
Sustainability Strategies Carbon neutral ~ -1.2 CO2 tons emitted First brand of shopping centers in 4 shopping +15,000 solar panels Use of renewable energy, LED lights, Colombia certified as Carbon centers with LEED Viva generates renewable lighting system automation and Neutral certificate energy t
Slide 73: Puntos Colombia Loyalty Coalition
Puntos Colombia Loyalty Coalition 73
Slide 74: Puntos Colombia: the largest loyalty program in Colombia
Puntos Colombia: the largest loyalty program in Colombia Offer to companies Offer to users • Partnership in loyalty program: • Loyalty program: accumulation access to +6.2 M users, 12,000 and redemption in +160 companies partners in all purchases • Brand visibility • PCO Centralized Marketplace • In
Slide 75: Economic model of a loyalty coalition
Economic model of a loyalty coalition PCO Loyalty Program Monetization Model Partner pays PCO User receives at a value of X points for their pesos per point Partner purchases in the 3 sources of ally User uses points to buy in the ally at a value conversion of 1 PCO pays the point per Y pesos partne
Slide 76: Key factors position PCO as a unique offering
5 key factors position PCO as a unique offering with a solid business model 1. Scale in users with high level 2. Proven and quantified value of engagement proposition for partners +6.2 M users, 12,000 companies +4,000 physical points of sale +2 M APP downloads 3.6x Grupo Éxito's annual loyalty turno
Slide 77: Key factors position PCO as a unique offering (cont.)
5 key factors position PCO as a unique offering with a solid business model 3. Solid and self- 4. Unique data in 5. Talent and culture sustaining financial quality and model quantity + 50 declared and enriched variables ~ COP$320,000 M 89.4 Contributor NPS Revenue 100% monitoring of Bancolombia cred
Slide 78: Launch of disruptive activities to leverage Puntos Colombia growth
Launch of 3 disruptive activities that will leverage the growth of Puntos Colombia 1. Loyalty as a Service 2. Payments and financial 3. Media Services and Data services Monetization Mostrar código CVV Digital Media Service SMBs Loyalty Program focused Financial products and leveraging ecosystem data
Slide 79: PCO button allows accumulation / redemption with digital channels
1. PCO button allows accumulation / redemption in stores with digital channels Value proposition: Simplicity and speed throughout the process Video de propuesta https://streamable.com/oyugyw de valor Botón Security supported through technical functionalities Liquidity and universality by massifying
Slide 80: Media Services offers access to data and channels
2. Media Services offers access to data and channels to enhance brands Unique data Fanático Calcular la Seguidor probabilidad que tiene Entusiasta Calcular el valor de el cliente de migrar a Retail Distante ingresos que genera cada Indiferente los diferentes 9,9% 0,1 % 1% cliente durante su vida úti
Slide 81: TUYA Financial Retail
noo = on BD oly TUYA @) ok Financial Retail 5101 2077 5704 7003 tarjeta éxito’ _) 0123 3467 8901 2345 01/23 Le
Slide 82: AAA Rating: Joint venture between two giants
We are not a Co-Branded card But a Joint Venture between two giants… 50% 50% Independent company with independent staff and Board of Largest retailer in Directors Largest bank in Colombia Colombia Banking License Mastercard License AAA Rating 13 consecutive years* 82 * AAA Certification by Fitch & R
Slide 83: Éxito card: cardholders and spending
1.4 M cardholders 18% of total annual sales of the retailer (~29% excluding food category) 1 customer with Éxito Card: Monthly expenditure Average ticket 42% share in sales through 12 More units Grupo Éxito's digital channels 2.9x 4.7x per purchase DIGITAL FIRST BY 83 Notes: Data as of 2022.
Slide 84: Carulla card
~ +45,000 Carulla cards in 2022 Revenue ~ +505,000 M COP (+21% vs 2021) First credit card in Colombia with contactless 1 customer with Carulla Card: technology, today with ~60% de adoption in Monthly expenditure Average ticket the Andean region 7 More units 2.2x 2.8x per purchase Partner with greate
Slide 85: Surtimayorista card
Surtimayorista Potential 1,000,000 Surtimayorista clients Goal: ~16% share Complementary to the Merchant's Club Sale by digital channel 83% early activation, the highest in our First stage: portfolio Clients: ~3,800 Revenue: ~$33,000 M COP 85 Notes: Data as of 2022.
Slide 86: Ecosystem B2B2C payment model
Goal: to be the main payment method of the whole ECOSYSTEM THIS ENABLES US A BUSINESS MODEL THAT IS B2B2C + ALLIED PARTNER END CUSTOMER 86
Slide 87: Monetizing the trust of important allies
Monetizing the trust of IMPORTANT ALLIES Retail Banking Logistics Telco Banking as a service +30 M potential clients 87 Notes: Data as of 2022.
Slide 88: Clients reached by TUYA business model
Business model that allows reaching 80% of the Colombian population with income of less than 2 minimum wages and not covered by the Traditional Banking system Access to the financial system for the first time given to +1.5 million individuals Total: ~0.64 M ~2.4 M 44% with income below 2 monthly Cli
Slide 89: Main business drivers show TUYA growth
Main business drivers show TUYA growth consistently in recent years… Card Issuance (#) Billing (B COP) +5% 652,165 616,219 638,568 622,499 +14% $ 7.4 576,721 $ 5.2 $ 5.6 419,273 431,281 $ 4.9 $ 4.5 322,323 $ 4.02 $ 4.1 $ 3.01 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021
Slide 90: TUYA 2022 financial results
In 2022, TUYA achieved financial results that reflected a good business dynamics... $1 billion Net Revenue (+20% vs 2021) +$7.4 billion in purchases and +2.4 million new customers (+32% vs 2021) $4.5 billion of credit portfolio (+26% vs 2021) +26% business results before provisions vs 2021 90 Notes:
Slide 91: Financial strength and trust for investors
Financial strength and trust are our best letter of introduction for our investors... ~COP$6.4 billion in credit 6th MOST IMPORTANT issued (CDTs), with +4,000 player in Colombia in investors issuance of dematerialized credit (CDT’s) +54% of 1st place in operational INVESTORS numbers, with a 24% GROW
Slide 92: Sustainability Strategy
Sustainability Strategy 92
Slide 93: We nourish with opportunities
We nourish with opportunities 93
Slide 94: Higher Purpose
Higher Purp se To provide opportunities to Colombia We cannot limit ourselves to giving the expected minimums, but rather be able to reach the maximum possible Corporate responsibility Planet to the planet Society Company's contribution to the community Company Company relationship with its stakehol
Slide 95: Sustainability Strategy pillars
Sustainability Strategy: 6 pillars declared by the company Sus taina Zero Malnutrition bility as an opportunity generation The success of Grupo Éxito is in its people We act with Sustainable trade tool integrity Healthy Lifestyle My Planet 95
Slide 96: ESG achievements 2022
ESG achievements 2022 Initiatives to generate value through economic growth, social development and environmental conservation Zero malnutrition My planet Sustainable trade • VIVA and Carulla FreshMarket certified as • 60,046 children benefited from nutrition • 88% of fruit and vegetables purchased
Slide 97: We work to nourish Colombian children
We work to nourish Colombian children 1 in 9 children in Colombia suffer from chronic malnutrition +60,000 children Corporate social goal: benefitted eradicate chronic child malnutrition in 27 departments and 192 Colombia by 2030 municipalities 232,000 +$21,000 million in Donation certificates deliv
Slide 98: Local purchase: commitment to agricultural vocation
Local purchase: a commitment to the agricultural vocation of the territories Engine of 89% fruits and 86% is purchased Communities, victim development vegetables is directly from +940 of the armed conflict and economic purchased in the farmers and and present in PDET reactivation country peasant fam
Slide 99: Apparel business: the Company's DNA
#ModaHechaenColombia Apparel business: the Company´s DNA Éxito dresses Colombia 48.8 million The Apparel brands of units sold 9,600 jobs Arkitect, Bronzini and created, People received the (70% Sustainable Gold Seal 97% of the Private women) within the framework of Label clothing that we Colombiamod
Slide 100: #UnÁrbolALaVez and Recycling
#UnÁrbolALaVez Recycling Environmental Goal Update We continue to expand with a We are committed to reduce presence in 5 our CO2 emissions by 55% departments (scopes 1 and 2) by 2025 Advance 2022: 41% reduction n ser reconocido como Carbono Neutro Carulla Fresh Market, the We reached the goal of pla
Slide 101: When we protect biodiversity
We provide opportunities to Colombia: https://streamable.co m/xmrr9g When we protect biodiversity Colombia Magia Salvaje movie First retailer in Colombia to implement reached the hearts of Colombians, a model of Sustainable Livestock strengthening environmental awareness 100% of our suppliers are +3
Slide 102: We work close to the communities
Terrazas Verdes: We work close cultivating dreams and opportunities in to the vulnerable territories communities First National 6,000 units sold in Éxito and Graffiti Fair Carulla Laureles 13 cities Intervention of 22 300 Social workshops with units that reflect the more than 300 people identity of
Slide 103: We are diverse, equitable and inclusive
We are We build transparent relationships with our diverse, We obtained the Equipares Gold Seal stakeholders from the Ministry of equitable and Labor, accompanied by the UN inclusive We take on the Among the top 10 food retailers in the Corporate Sustainability Assessment by challenge of being co- S
Slide 104: We provide Opportunities to Colombia
We provide Opportunities to A higher purpose for the future because we are moved by hope, optimism and the desire to be part of the dreams of Colombian men and women We believe in the power of building a https://streamable.com/tf930i country together! 104
Slide 105: International Operations
International Operations 105
Slide 106: International Operations: Uruguay
International Operations: Uruguay 94 stores • Country with the highest per capita income in the Located in the region - most densely populated • Macroeconomic stability areas • Operation with extensive experience in high-value Fresh Market 30 Supermarkets supermarkets 29 stores 62 Supermarkets y con
Slide 107: International Operations: Argentina
International Operations: Argentina 3rd commercial centers operator Dual Strategy: Retail / Real estate 4.3% EBITDA margin 14 Hypermarkets Positive cash generation 4.5x digital sales 34 stores 10 Cash and Carry 14 real estate assets 103.7% sales growth 174,000 sqm of GLA 3.9% omnichannel 92.6% occup
Slide 108: Operational Excellence Model
Operational Excellence Model 108
Slide 109: Operational Excellence Program
Operational Excellence Program We transform the way things are done, optimizing processes and adopting new technologies to generate value for our Company and our stakeholders Strategic 1 Objectives 2 Expense growth below sales Optimize supply and logistics operation ~20 a 30 bps of annual rate impro
Slide 110: Financial Information
Financial Information 110
Slide 111: Financial information: Grupo Éxito Consolidated
Financial information: Grupo Éxito Consolidated Net Revenue Recurring EBITDA and Margin (MM COP ) CAGR +14,5% (MM COP; %) CAGR +14,3% 9,07% 20,620 8,08% 8,06% 16,922 +21.8% 15,736 1.272 1.535 1.662 2020 2021 2022 2020 2021 2022 111 CapEx in LATAM (MM COP ) Investment (MM COP ) in expansion and renov
Slide 112: Financial information: Colombia
Financial information: Colombia Net Revenue Gross Profit and Margin (MM COP ) CAGR +12% (MM COP ; %) 22.64% 23.78% 15,280 22.16% 13,033 15,280 11,751 12,182 3,386 12,182 13,033 +17.2% 3,099 2,758 2019 2020 2020 2021 2021 2022 2022 2020 2021 2022 Recurring Operating Income Recurring EBITDA and Margin
Slide 113: Financial information: Uruguay
Financial information: Uruguay Net Revenue Gross Profit and Margin (MM COP ) CAGR +15,7% (MM COP; %) 3,591 34.47% 34.79% 34.07% +34.4% 2,683 2,672 1,249 914 921 2020 2021 2022 2020 2021 2022 Recurring Operating Income Recurring EBITDA and Margin (MM COP; %) (MM COP; %) CAGR +13,2% 10.3% 10.2% 9.9% 3
Slide 114: Financial information: Argentina
Financial information: Argentina Net Revenue Gross Profit and Margin (MM COP) CAGR +41,5% (MM COP; %) 33.9% 34.5% 1,751 32.4% 604 +43.7% 1,218 412 874 283 2020 2021 2022 2020 2021 2022 Recurring Operating Income Recurring EBITDA and Margin (MM COP; %) (MM COP; %) CAGR +118% 4.3% 3.4% 76 1.8% 51 41 1
Slide 115: Strong cash generation and consistent capex execution
Strong cash generation and consistent capex execution CapEx in LATAM Consolidated number of opening and renovation projects (MM COP ) 550 53 233 497 200 12 14% 29 21% 22% 8 25% 6 - 300 33% 29% 8 61% - 800 9 7 46% 50% 6 27 8 - 1300 2020 2021 2022 - 1800 2020 2021 2022 Expansión/Renovaciones Mantenimi
Slide 116: Holding net debt and debt maturities
Strong cash generation and consistent capex execution Holding Net Debt (B COP ) 2.21 2.06 2.00 1.97 1.20 1.25 0.98 0.50 (0.20) (0.86) (0.75) (0.99) 2019 2020 2021 2022 Net Cash Gross debt Net financial debt Gross Debt Maturities at Holding Level (MM COP) Structured Balance 773 335 175 125 63 34 17 1
Slide 117: Appendices
Appendices
Slide 118: 2Q23 Consolidated highlights
High single-digit top line growth (+12.4% on comparable basis1) driven by solid sales 2Q23 Consolidated2 performance in all three countries highlights Net Revenue Net Result SSS3 Recurring EBITDA COP $5.1 B COP -$6,184 M +5.9% (+9.8%1) COP$395,391 M, +6.6%, 7.7% margin (+8.5% vs 2Q22, +12.4%1) (-0.1
Slide 119: Financial Performance
Financial Performance 119
Slide 120: 2Q23 Top Line performance
Consolidated sales grew by 8.2% (+12.3% when 2Q23 Top Line excluding the non-VAT day effect) performance Colombia Uruguay Argentina Consolidated in COP M 2Q23 2Q22 % Var 2Q23 2Q22 % Var 2Q23 2Q22 % Var 2Q23 2Q22 % Var Net Sales 3,505,457 3,384,527 3.6% 1,036,584 771,878 34.3% 359,927 373,833 (3.7%)
Slide 121: 2Q23 Operating performance by country
Top line growth across countries and internally efficiencies partially offset by inflationary pressures on 2Q23 Operating the cost/expense structure performance by country Colombia Uruguay Argentina in COP M 2Q23 2Q22 % Var 2Q23 2Q22 % Var 2Q23 2Q22 % Var Net Revenue 3,700,369 3,550,368 4.2% 1 ,045,
Slide 122: Consolidated Operating Performance
Solid gross margin gains across countries and efforts to increase productivity led to recurring EBITDA growth Consolidated Operating (6.6% in 2Q23; 7.8% YTD, +12.1% in comparable basis1) Performance 1H23 Recurring EBITDA highlights ➢ Solid commercial performance in Uruguay and Argentina, despite inf
Slide 123: Group share net result
Net income totaled COP$38,934 M as of 1H23 Group share net result Net Result highlights 2Q23 • 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) hig
Slide 124: 1H23 Leverage and cash at holding level
Free cash flow reached COP $92,000 M, a positive outcome amidst economic slow down and higher 1H23 Leverage and cash at investment levels and a comparable basis holding level1 Cash and debt highlights • Dividends from subsidiaries continued to allow the Company’s investment requirements and payments
Slide 125: Conclusions
Quarterly double-digit top line growth1 and gross margin gains droved operational performance Conclusions • ADR and BDR spin-off completion expected by 3Q23. • Double-digit consolidated sales growth on comparable basis1, in local currency in all three countries • Recurring EBITDA grew in 2Q and 1H d
Slide 126: Consolidated financial results
Consolidated financial results in COP M 2Q23 2Q22 % Var 1 H23 1 H22 % Var Net Sales 4,901 ,361 4,530,238 8.2% 1 0,1 38,593 8,905,386 1 3.8% Other Revenue 21 7,759 1 86,977 1 6.5% 436,681 41 3,796 5.5% Net Revenue 5,1 1 9,1 20 4,71 7,21 5 8.5% 1 0,575,274 9,31 9,1 82 1 3.5% Cost of Sales (3,753,325)
Slide 127: P&L and capex by country
P&L and capex by country Income Statement Colombia Uruguay Argentina Consol in COP M 2Q23 2Q23 2Q23 2Q23 Net Sales 3,505,457 1 ,036,584 359,927 4,901 ,361 Other Revenue 1 94,91 2 8,692 1 4,1 59 21 7,759 Net Revenue 3,700,369 1 ,045,276 374,086 5,1 1 9,1 20 Cost of Sales (2,836,991 ) (671 ,340) (245,
Slide 128: Consolidated balance sheet
Consolidated balance sheet in COP M Dec 2022 Jun 2023 Var % in COP M Dec 2022 Jun 2023 Var % Assets 1 8,1 83,289 1 7,379,523 (4.4%) Liabilities 9,748,843 9,344,287 (4.1 %) Current assets 5,947,863 5,51 9,330 (7.2%) Current liabilities 7,41 5,394 7,285,080 (1 .8%) Cash & Cash Equivalents 1 ,733,673 1
Slide 129: Consolidated cash flow
Consolidated cash flow in COP M Jun 2023 Jun 2022 Var % Profit 1 26,61 1 1 86,270 (32.0%) Operating income before changes in working capital 743,994 685,650 8.5% Cash Net (used in) Operating Activities (41 4,454) (766,309) (45.9%) Cash Net (used in) Investment Activities (269,01 4) (1 47,1 65) 82.8%
Slide 130: Holding P&L
Holding P&L (1) in COP M 2Q23 2Q22 % Var 1 H23 1 H22 % Var Net Sales 3,508,364 3,388,924 3.5% 7,1 40,696 6,71 1 ,81 4 6.4% Other Revenue 1 02,384 87,338 1 7.2% 208,356 21 6,41 3 (3.7%) Net Revenue 3,61 0,748 3,476,262 3.9% 7,349,052 6,928,227 6.1 % Cost of Sales (2,830,21 8) (2,735,369) 3.5% (5,758,
Slide 131: Holding balance sheet
Holding balance sheet (1) in COP M Dec 2022 Jun 2023 Var % in COP M Dec 2022 Jun 2023 Var % Assets 1 4,761 ,545 1 4,295,227 (3.2%) Liabilities 7,622,557 7,587,090 (0.5%) Current assets 4,432,647 4,1 45,525 (6.5%) Current liabilities 5,455,563 5,61 3,538 2.9% Cash & Cash Equivalents 1 ,250,398 920,1
Slide 132: Debt by country and maturity
Debt by country and maturity 30 Jun 2023, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 1 ,506,229 1 ,51 6,802 61 6,741 34,205 2,1 67,749 Financial liabilities 1 ,41 6,330 1 ,41 6,330 61 4,671 34,205 2,065,206 Other financial liabilities 89,899 1 00,472 2,070
Slide 133: Store number and sales area
Store number and sales area Banner by country S tore number S ales area (sqm) Colombia Exito 209 620,572 Carulla 1 06 88,447 Surtimax 76 30,31 4 Super Inter 59 56,907 Surtimayorista 59 50,582 Total Colombia 509 846,821 Uruguay Devoto 62 40,544 Disco 30 35,252 Geant 2 1 6,41 1 Total Uruguay 94 92,207
Slide 134: Investor Relations contacts
María Fernanda Moreno R. Teresita Alzate Head of Investor Relations Investor Relations Executive +(57) 312 796 2298 +(574) 6049696 Ext 306560 mmorenor@grupo-exito.com teresita.alzate@grupo-exito.com Éxito Calle 80, Cr 59 A No. 79 – 30 Cr 48 No. 32B Sur – 139, Av. Las Vegas Bogotá, Colombia Envigado,
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