Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Investor Presentation (2018)
47 slides from Almacenes Exito Sa's investor presentation, 2018
Slide 1: Corporate Presentation 2018
Corporate Presentation 2018 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 Co
Slide 3: Content
Content • Grupo Exito Overview …………………………………………………… 5 • Synergy Process ………………………………………………………… 11 • Key Facts by Country: o Colombia ………………………………………………………......... 15 o Brazil …………………………………………………………………. 20 o Uruguay ……………………………………………………………... 21 o Argentina …………………………………………………………..... 22 • Ownership
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 Latin 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 #2 in Brazil Solid omni-channel strategy Multi-format and multi-brand proposal Consolidated Net Revenues of COP$56.4 billion in 2017 • 574 st
Slide 8: Grupo Éxito Overview
Grupo Éxito Overview As of Dec 31, 2017 Total Sales (M COP) 10,623,405 40,975,969 2,589,761 1,383,591 55,556,241 Recurring EBITDA 632,769 2,716,621 204,903 63,767 3,618,060 EBITDA margin 5.7% 6.6% 7.8% 4.3% 6.4% Local Market share 42% (1) 14.5% (2) 44% 15% N.A. Stores 574 882 (3) 88 29 1.573 Real Es
Slide 9: 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 9
Slide 10: Strategic Initiatives by Country
Strategic Initiatives by Country Innovation to build up profitable differentiation in each market Colombia Brazil LatAm Transversal Cash & Carry expansion Strategies Store portfolio optimization Unbeatable products Textile with focus on Assaí expansion “Fresh Market” model Model Launch of
Slide 11: Synergy Process
QrupO Synergy Process 11
Slide 12: Synergies Snapshot 2015-17
Synergies Snapshot 2015-17 Recurrent gains reached by Grupo Éxito became the largest retailer in SA after year at Consolidated level acquiring GPA and Libertad. 2015 Redefinition of the Corporate Structure Accenture, UDS$5 M consulting and identification of synergies. 15 joint projects to exec
Slide 13: Synergies Follow-up
Synergies Follow-up USD120 M 28 Initiatives under 4 countries expected annual run rate in 2018 execution Formats & Brands Joint Activities Cash & Carry 220 2x Food containers Sales growth vs converted stores USD 11.2 M 17 Joint purchasing Stores expected by USD 0.6 M year-end Savings at cost level F
Slide 14: Key Facts by Country
QrupO Key Facts by Country 14
Slide 15: Formats & Channels in Colombia
Formats & Channels in Colombia Supermarkets & 100 stores Convenience stores A pleasure for Best in Fresh & Imported Cash & Carry everyday Premium products Top Experience 9 stores Hypermarkets, 263 stores Supermarkets & Convenience stores Value for Money At your service Customer Service Foo
Slide 16: 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 17: Initiatives in Colombia
Initiatives in Colombia Innovative Activities Cash & Carry Omni-channel strategy 19% Sales growth in 2017 • Profitable expansion • 9 stores as of 2017 Web 13,5% Sales growth • Strong sales response Click and Collect (+2x after conversions) 26% sales growth Mobile App • Solid returns • Low operating
Slide 18: Initiatives in Colombia
Initiatives in Colombia Traffic Monetization Complementary Businesses Loyalty Program “Puntos Colombia” Financial Retail Travel 2.6 M cards issued 210,000 clients • The largest ecosystem of point issuances and redemptions in Colombia. • 10 M clients. Mobile Insurance • High potential for intangible
Slide 19: Initiatives in Colombia
Initiatives in Colombia Traffic Monetization Real Estate 29 + 40 million 1.997 Shopping malls and commercial Visitors in all shopping malls Commercial sites galleries (including Viva Malls) Viva Envigado: the largest mall in the country Viva Tunja: the largest mall in Boyacá 65% 240 140K m2 41% 142
Slide 20: Formats & Brands in Brazil
Formats & Brands in Brazil Leading the most trendy formats, Premium and 305 stores Cash and Carry Hyper & Super Targeting Families 265 stores Cash & Carry Proximity 126 stores Mini Mercado Extra & Minuto Multi-business Strategy Pão de Açúcar Low Operating Costs & Competitive Prices 186 s
Slide 21: Formats & Brands in Uruguay
Formats & Brands in Uruguay Profitable operation driven by a differentiated value proposition 29 stores Supermarkets 57 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 22: Formats & Brands in Argentina
Formats & Brands in Argentina Third real estate player in Argentina 15 stores Hypermarkets Libertad stores: Mini Presence in 9 states 15 stores • Expansion in convenience. Convenience and Premium Formats • First shopping center operator outside Buenos Aires with 170K sqm of GLA. • Dual model retail-
Slide 23: Ownership, Management and Shareholder Structures
Ownership, Management and Shareholder Structures 23
Slide 24: 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 24 Figures as of Dec 31, 2017.
Slide 25: 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 26: Grupo Éxito Ownership Structure
Grupo Éxito Ownership Structure BVC: EXITO ADR 144: ALAXL 26
Slide 27: 2018 Outlook & Perspectives
2018 Outlook & Perspectives 27
Slide 28: 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 implemented at 5 stores in the country and best performing initiatives to be rolled out at Carulla stores. SG&A expenses to grow below CPI benefitte
Slide 29: 2018 Perspectives
2018 Perspectives Positive effect in consumption from lower inflation and interest rates and lower financial expenses mainly in Colombia and Brazil. Continued gradual economic recovery and operational outcome in Brazil and Argentina. Retail expansion focus on attractive formats for consumers,
Slide 30: Appendixes
QrupO Appendixes 30
Slide 31: Corporate Governance and Sustainability
Corporate Governance and Sustainability 31
Slide 32: Corporate Governance Standards
Corporate Governance Standards Exito is committed to continuously improve and advance on Corporate Governance Standards Comprehensive review of the Corporate Governance Code and the Adoption of Transparency Program. OECD Corporate Governance Advances in the consolidation of best corporate govern
Slide 33: Sustainable Strategy
Sustainable Strategy The success of Grupo Exito is in their people Sustainable strategy AY, Encouraging a healthy lifestyle planeta 33
Slide 34: Financial Results 1Q18 FY 2017
Financial Results 1Q18 FY 2017 34
Slide 35: 1Q18 Consolidated Financial Results
1Q18 Consolidated Financial Results Resilient operating performance and positive Net Income driven by diversification strategy Consolidated Income Statement 1Q18 1Q17 In COP M In COP M %Var Net Sales 13,519,070 13,333,244 1.4% Other Revenue 224,718 192,669 16.6% FX negatively affected Net Revenue 13
Slide 36: 1Q18 Group Share Net Result
1Q18 Group Share Net Result Net Income reflected financial and operational efficiencies across the region The Net Group Share Result mainly included: o Improved financial expenditures from lower repo rates (Bra (1) -575 bps, Col (1) -250 bps). o Productivity efforts throughout the region that mainly
Slide 37: Net Debt and Cash at Holding Level
Net Debt and Cash at Holding (1) Level Improvements from increased dividends and lower financial expenses 570 631 Cash (& other assets) Gross debt (financial liabilities & warranties) Net financial debt -3,942 -3,861 -4,512 -4,491 1Q 2017 -2.1% 1Q 2018 NDF at the holding level: COP$3.9 B as of Mar
Slide 38: 1Q18 Conclusions
1Q18 Conclusions Top-line growth regardless of a lower inflationary food trend. Positive outcome of international business units improved operating performance despite negative FX effect. Plans to control expenditures continue advancing and improved productivity across all business units, desp
Slide 39: 4Q/FY17 Consolidated Financial Results
4Q/FY17 Consolidated Financial Results Solid margin growth from productivity efforts and international performance Top line benefitted from the outcome of international operations and growth of other revenues driven mainly by real estate in both Colombia and Argentina. Gross Profit growth driven
Slide 40: Group Share Net Result & Dividend Proposal
Group Share Net Result & Dividend Proposal Net Income important improvement driven by strong international operations result 788,559 141,015 204,145 7,595 23,527 92,104 99,789 81,041 217,713 43,528 409,270 Net Income ∆ ROI ∆ ROI ∆ ROI ∆ Non- ∆ Income from ∆ Financial ∆ Income tax ∆ Min. Interest ∆ D
Slide 41: Net Debt and Cash at Holding Level
Net Debt and Cash at Holding (1) Level Éxito NFD/Adjusted EBITDA(2) ratio was 3.52x as of Dec 2017 -16% NFD at holding level: o COP$ 2.5 B as of Dec 31, 2017 improved by COP$ 477,000 M (var. 16.0% vs 4Q16). o NFD/Adjusted EBITDA (2) ratio increase mainly explained by a challenging year in Colombia
Slide 42: FY17 Debt by Country and Maturity
FY17 Debt by Country and Maturity Net debt breakdown by country December 31,2017 (millions of COP) Colombia Uruguay Brazil Argentina Consolidated Short-term debt 944,471 440,418 1,140,502 26,694 2,552,085 Long-term debt 3,361,953 - 3,010,184 - 6,372,137 (1) Total gross debt 4,306,424 440,418 4,150,6
Slide 43: FY17 P&L and CapEx by Country
FY17 P&L and CapEx by Country 43 Note: Consolidated figures include eliminations and adjustments.
Slide 44: FY17 Consolidated Balance Sheet
FY17 Consolidated Balance Sheet 44
Slide 45: FY17 Consolidated Cash Flow
FY17 Consolidated Cash Flow % var 2017 / SUMMARY CONSOLIDATED CASH FLOW STATEMENT FY2017 FY2016 2016 Profit (loss) 1,071,066 - 622,395 -272.09% Adjustment to reconciliate Net Income 2,072,013 1,126,453 83.9% Cash Net provided (used) in Operating Activities 3,143,182 504,058 523.6% Cash Net provided
Slide 46: 2017 Conclusions
2017 Conclusions Regional diversification and positive outcome drove consolidated results. Significant Net Result improvement (+5x). Consistent cost and expense level gains despite inflationary pressures last year resulted in a leaner operation in the region. Annual synergy plan captured of
Slide 47: 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