Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — Q3 2021 Earnings Presentation
33 slides from Almacenes Exito SA's earnings presentation, Nov 4, 2021
Slide 1: 3Q21 Grupo Éxito Financial Results
3Q21 Grupo Éxito Financial Results November 4, 2021 “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 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 operate
Slide 3: Agenda
Agenda • Financial and operating highlights • Performance by country • Consolidated financial results • Q&A session 3
Slide 4: Consolidated financial & operating highlights
Consolidated financial(1) & operating highlights A solid 14.1% top line growth and material recurring EBITDA margin gains (+166 bps) Financial Highlights Operating Highlights Recurring EBITDA ▪ Net sales driven by a strong retail growth boosted by ▪ Omni-channel: 10.1% share on consolidated sales YT
Slide 5: Net Sales & SSS performance in Colombia
Net Sales (1) & SSS (1) performance in Colombia The highest net sales growth since 2007, driven by innovation and omnichannel 3Q21 9M21 Low-cost Low-cost & Other (2) & Other (2) Variations SSS (1) 16.6% 16.9% 7.9% 25.6% 3.5% 4.1% -2.0% 7.6% Total (1) 14.9% 16.8% 8.0% 12.9% 2.3% 3.8% -2.2% 1.2% Total
Slide 6: Performance by segment
Performance by segment An accurate and consistent strategy boosted sales aided by economic recovery Éxito: Carulla: Low-cost & Other(1): • +4 Éxito WOW in 3Q21; 16 stores in total • +1 FreshMarket in 3Q21; 16 stores in total • +7 Vecino stores in 3Q21; 21 stores in total • Contribution from “Mega pr
Slide 7: Innovation in models & formats
Innovation in models & formats WOW and FreshMarket stores share on Colombia sales reached 23.4% Éxito Wow: Innovation in Hypermarkets Carulla FreshMarket: Premium , fresh and sustainable +4 stores in 3Q21 to 16 YTD +1 stores in 3Q21 to 16 YTD 8 stores 2021E 7 stores 2021E 27.8% of total 36.2% of tot
Slide 8: Low-cost & Other
Low-cost & Other(1) A 15.4% share on Colombia sales levered on store conversion and omni-channel A profitable wholesale format 34 stores YTD 36 stores 2021E +41.2% sales growth in 3Q21 Strong digital Sales +18.1% YTD presence 34.2% of total banner sales YTD 700 SKU´s available (32% 2021E) Club del C
Slide 9: 9M21 Omni-channel strategy
9M21 Omni-channel(1,2) strategy Leveraged all banner’s sales; leading in the region with a 12.2% share on sales Total Sales Share on sales(2) Orders 9M21 Highlights 5.8 M (-11.9%) COP $1.04 billion (-2.9%) 12.2% (vs. 12.7% in 9M20) E-commerce Click & Collect ✓ $365k M in sales ✓ Sales +37% and ✓ 110
Slide 10: Innovative Digital Activities
Innovative Digital Activities Developed to enhance the omni-channel strategy and increase sales WhatsApp service Turbo 10 minutes • Launched in 2020 • Sales increased by 2.3x vs last year • Near to 20% of omni-channel sales • Service available at 320 stores (176 Éxito, 84 Carulla, 60 Super Inter) •
Slide 11: Asset and Traffic Monetization Activities
Asset and Traffic Monetization Activities Businesses continued to improve benefited by lower mobility restrictions Real Estate Business Puntos Colombia Revenue grew 49%(1) in 9MQ21 • 18.7M clients (5.2 M with Habeas data) Omni-channel represented 3.2% of total tenant sales (2) • 112 brands allies Oc
Slide 12: Sustainability Strategy
Sustainability Strategy Commitment with ESG initiatives to generate value: economic growth, social development and environmental protection Child Nutrition Local purchasing and suppliers 57,595 children benefited from nutrition and complementary 90% of fruit and vegetables programs purchased locally
Slide 13: Operating Results: Colombia
Operating Results: Colombia A 15.1% top line growth diluted a controlled expense base and led to a 49.4% recurring EBITDA growth (+200 bps) in COP M 3Q21 3Q20 % Var 9M21 9M20 % Var Net Sales 3,045,630 2,665,349 14.3% 8,456,876 8,312,024 1.7% Other Revenue 162,998 122,829 32.7% 528,778 381,177 38.7%
Slide 14: Operating Results: Uruguay
Operating Results: Uruguay The best quarterly performance in 2021: top line recovery and a higher EBITDA margin (10.1%, +90 bps) driven by internal efficiencies and economic rebound in COP M 3Q21 3Q20 % Var 9M21 9M20 % Var Net Sales 647,716 622,176 4.1% 1,898,958 1,967,844 (3.5%) Other Revenue 6,258
Slide 15: Operating Results: Argentina
Operating Results: Argentina Sales grew above inflation and EBITDA margin gained 83 bps from internal efficiencies and leveraged by economic recovery in COP M 3Q21 3Q20 % Var 9M21 9M20 % Var Net Sales 288,943 222,414 29.9% 753,511 690,015 9.2% Other Revenue 12,512 13,267 (5.7%) 24,046 23,784 1.1% Ne
Slide 16: Consolidated Financial Results
Consolidated Financial Results A consistent strategy drove top line growth, diluted expenses and granted margin expansion (166 bps) in COP M 3Q21 3Q20 % Var 9M21 9M20 % Var Net Sales 3,982,284 3,507,629 13.5% 11,108,912 10,967,573 1.3% Other Revenue 181,573 142,310 27.6% 570,804 423,253 34.9% Net Re
Slide 17: Group Share Net Result
Group Share Net Result A solid operating performance and financial efficiencies drove net income to grow 2.4x Highlights ▪ Material contribution from operating activities from a growing retail business and the consistent recovery of complementary businesses (mainly the real estate and the financial)
Slide 18: Debt and Cash at Holding Level
Debt and Cash at Holding(1) Level Top line growth favoured a strong cash generation Main highlights Data in billion COP • Net financial debt improved by 100,000 M COP compared to the 3Q20 from a strong operational cash flow driven by top line growth. • Cash position decreased 95,000 M COP and gross
Slide 19: 3Q21 Conclusions
3Q21 Conclusions LatAm platform ▪ A consistent strategic focus on innovation, omni-channel and monetization boosted top line growth (14.1%) even above pre-COVID levels. ▪ Recurring EBITDA margin gains (+166 bps vs 3Q20, +89 bps vs 3Q19) and net income 2.4x growth driven by a stronger retail performa
Slide 20: Appendices
Appendices
Slide 21: 2021E Outlook
2021E Outlook LatAm platform ▪ Net result to improve reflecting better operating performance and stability of non-operating lines ▪ Consolidated Capex of between 110 to 130 MUSD (prioritizing mainly conversions of Wow and Fresh Market stores and the strengthening of IT and logistics platforms for om
Slide 22: 3Q/9M21 Consolidated Financial Results
3Q/9M21 Consolidated Financial Results in COP M 3Q21 3Q20 % Var 9M21 9M20 % Var Net Sales 3,982,284 3,507,629 13.5% 11,108,912 10,967,573 1.3% Other Revenue 181,573 142,310 27.6% 570,804 423,253 34.9% Net Revenue 4,163,857 3,649,939 14.1% 11,679,716 11,390,826 2.5% Cost of Sales (3,080,818) (2,724,1
Slide 23: 3Q21 P&L and Capex by Country
3Q21 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M 3Q21 3Q21 3Q21 3Q21 Net Sales 3,045,630 647,716 288,943 3,982,284 Other Revenue 162,998 6,258 12,512 181,573 Net Revenue 3,208,628 653,974 301,455 4,163,857 Cost of Sales (2,455,115) (426,823) (199,132) (3,080,
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2020 Sep 2021 Var % in COP M Dec 2020 Sep 2021 Var % Assets 15,649,974 14,942,724 (4.5%) Liabilities 8,245,701 7,146,088 (13.3%) Current assets 5,265,996 4,089,052 (22.3%) Current liabilities 6,422,947 4,815,115 (25.0%) Cash & Cash Equivalents 2,409,391 963,57
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow in COP M Sep 2021 Sep 2020 Var % Profit 338,661 160,634 N/A Adjustment to reconciliate Net Income 833,418 624,390 33.5% Cash Net (used in) Operating Activities (944,605) (1,229,289) (23.2%) Cash Net (used in) Investment Activities (389,329) (187,072) N/A Cash net provided by F
Slide 26: 3Q21 Debt by Country and Maturity
3Q21 Debt by Country and Maturity Net debt breakdown by country 30 Sep, 2021 (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 447,376 478,260 474,200 13,066 965,526 Long-term debt 783,698 783,698 - 0 - 783,698 Total gross debt (1) 1,231,074 1,261,958 474,200 13,0
Slide 27: 3Q/9M21 Holding P&L
3Q/9M21 Holding(1) P&L in COP M 3Q21 3Q20 % Var 9M21 9M20 % Var Net Sales 3,046,957 2,666,251 14.3% 8,462,717 8,319,992 1.7% Other Revenue 92,008 80,292 14.6% 340,005 214,865 58.2% Net Revenue 3,138,965 2,746,543 14.3% 8,802,722 8,534,857 3.1% Cost of Sales (2,452,313) (2,149,690) 14.1% (6,803,839)
Slide 28: Holding Balance Sheet
Holding(1) Balance Sheet in COP M Dec 2020 Sep 2021 Var % in COP M Dec 2020 Sep 2021 Var % Assets 13,468,080 12,608,505 (6.4%) Liabilities 7,264,217 6,012,577 (17.2%) Current assets 4,309,539 3,101,196 (28.0%) Current liabilities 5,310,807 3,619,324 (31.8%) Cash & Cash Equivalents 1,969,470 617,252
Slide 29: Store Number and Sales Area
Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Éxito 236 618,654 Carulla 97 85,704 Surtimax 71 30,629 Super Inter 61 59,651 Surtimayorista 34 33,621 Total Colombia 499 828,259 Uruguay Devoto 59 40,071 Disco 30 35,252 Geant 2 16,411 Total Uruguay 91 91,734 Argent
Slide 30: 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 with over #1 shopping 105 allied brands mall operator Absolute market in Colombia leader, with 28% retail market share #3 real est
Slide 31: Grupo Éxito Strategic Pillars
Grupo Éxito Strategic Pillars Leading transformation focusing on customer and key retail trends Omni-client Our people 4. Asset / Traffic 5. Sustainable Shared 1. Innovation 2. Omni-channel 3. Digital Transformation Monetization & Best Value Practices ▪ Models & Formats ▪ E-commerce ▪ Apps ▪ Loyalty
Slide 32: María Fernanda Moreno R. Head of Investor Relations
María Fernanda Moreno R. Head of Investor Relations +574 6049696 Ext 306560 mmorenor@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 Exchange is not a
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