Almacenes Exito SA · BVC:EXITO
Almacenes Exito SA — Grupo Éxito — Q3 2019 Earnings Presentation
42 slides from Almacenes Exito SA's earnings presentation, Nov 15, 2019
Slide 1: Documento en proceso de traducción
Documento en proceso de traducción
Slide 2: 3Q19 Grupo Éxito Financial Results
3Q19 Grupo Éxito Financial Results November 15, 2019 “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 3: Note on Forward Looking Statements
Note on Forward Looking Statements Please note that the sale to Casino, Guichard-Perrachon S.A. of the shares that Éxito held in the operating subsidiaries Companhia Brasileira de Distribuição - CBD as well as in the holding subsidiaries Segisor S.A.S. and in Wilkes Partipações S.A., was approved by
Slide 4: Agenda
Agenda • 3Q19 Financial and operating highlights • Performance by country and strategy follow up • 3Q19 Consolidated financial results • Q&A session 3
Slide 5: Grupo Éxito - New Perimeter of Consolidation
Grupo Éxito - New Perimeter of Consolidation Colombia, Uruguay and Argentina Continuing with a strategy focused on innovation, omnichannel and digital transformation Data 2Q19 Data 3Q19 Consolidated Consolidated Total Sales Total Sales (M COP) 2,615,519 10,729,345 589,302 271,691 14,205,857 2,673,12
Slide 6: 3Q19 Financial & Operating Highlights
3Q19 Financial(1) & Operating Highlights Solid performance and margin gains from accurate business strategies 3Q19 Highlights +2.8% Net Revenue +11.0% Recurring EBITDA 7.6% (+56 bps) (+7.5% exc. FX) (+14.3% exc. FX) Recurring EBITDA margin Corporate Governance Financial Highlights Operating Highligh
Slide 7: Net Sales & SSS Performance: Colombia
3Q19 Net Sales & SSS Performance: Colombia The strongest net sales performance in the last 3 years 3Q19 9M19 SM & B2B & SM & B2B & SI (2) Other (3) SI (2) Other (3) Variations SSS 5.3% 6.2% 2.4% -1.7% 18.0% 3.6% 4.6% 1.5% 0.0% 20.9% Total 5.1% 6.9% 3.0% -5.7% 12.6% 3.7% 5.4% 2.2% -8.7% 17.0% SSS ex
Slide 8: Net Sales & SSS Performance by Segment
3Q19 Net Sales(1) & SSS(1) Performance by Segment The Éxito banner and expansion of innovative formats leading growth ▪ Éxito: ✓ Best performing segment driven by the strong expansion of the WOW model ✓ Solid performance of commercial strategies ✓ Growth posted in all regions in the country ✓ Booste
Slide 9: Innovation in Models & Formats - Follow up 3Q19
Innovation in Models & Formats - Follow up 3Q19 Growth leverage activities in Colombia Sales Sales 30 stores 8 stores +15.7% +17.5% as of 3Q19 as of 3Q19 16.5% 4.4% 30 stores 9 stores of banner Colombia´s 2019E 2019E sales share sales share Strong sales Presence in Profitable Low operating growth Bo
Slide 10: Omni-channel – Follow up 3Q19
Omni-channel – Follow up 3Q19 Reaching 4.4% of sales penetration with food e-commerce growing 41.0% The Strongest Platform +30.1% sales Sales share 4.4% +991K deliveries COP 120,000 M (+ 86 bps vs 3Q18) (+27% vs 3Q18) Ecommerce ✓ +18.0% sales growth in 9M19 Marketplace ✓ +12.2% GMV(1) growth Omni-ch
Slide 11: Strengthening the delivery model - Follow up 3Q19
Strengthening the delivery model - Follow up 3Q19 Electric cars and dark stores to improve logistics and distribution 1,600 sqm Dark stores +6,000 SKUs ✓ Deliveries (apps, ecommerce & phone orders) targeting scheduled orders and full baskets ✓ Electric cars driven by women to promote sustainability
Slide 12: Digital Transformation - Follow up 3Q19
Digital Transformation - Follow up 3Q19 Transforming checkout to a frictionless experience Self check-out Shop & Go Mobile POS 8 stores 61 POS terminals 125 K Transactions 11 5 Stores 59 stores 36 K 29.5 K orders Transactions 11
Slide 13: Digital Transformation – Follow up 3Q19
Digital Transformation – Follow up 3Q19 Apps evolving as world-class digital solutions Costumer experience improvement through analytics and high value offering - “My Discount” 2:05 p.m. Wine advisor launched during the EXPOVINOS fair in Bogotá & Medellin: +1.5 M downloads +32 K users asked for advi
Slide 14: Asset Monetization – Follow up 3Q19
Asset Monetization – Follow up 3Q19 Viva Malls, the most important real estate operator in the country Viva Malls Viva Concept 1st year operation of 2 key shopping centers in Colombia Differentiation and Innovation Grupo Éxito´s total GLA: 754k sqm (566k sqm of GLA in Viva Malls) V i v a Envigado V
Slide 15: Traffic Monetization – Follow up 3Q19
Traffic Monetization – Follow up 3Q19 Ramping up the loyalty program to strength our business ecosystem 6 1 M transactions + 3 2 . 6 % clients 3.1M clients with Habeas Data with Habeas Data vs 1Q19 +8.1% 54 t o p allies transactions vs 1Q19 6 6 % share redemption in Grupo Éxito + 1 7 allies vs 1Q19
Slide 16: Business Strategy – Follow Up 3Q19
Business Strategy – Follow Up 3Q19 Innovative activities as key drivers for the Company’s growth and SSS protection Contribution per model to quarterly sales growth Innovation and omnichannel represented 3.9% out of the 5.1% quarterly sales growth Note: Net sales expressed in billion COP. Sales from
Slide 17: 3Q19 Operating Results: Colombia
3Q19 Operating Results: Colombia Top line progression and expense control led to margin growth (+47 bps) in COP M 3Q19 3Q18 % Var 9M19 9M18 % Var Net Sales 2,673,127 2,543,515 5.1% 7,922,962 7,640,881 3.7% Other Revenue 184,834 158,315 16.8% 497,770 427,267 16.5% Net Revenue 2,857,961 2,701,830 5.8%
Slide 18: Innovation in Models & Formats - Follow up 3Q19
Innovation in Models & Formats - Follow up 3Q19 Premium format strategy as key levers for sales growth Disco Fresh Market Agraciada Disco Fresh Market Agraciada Disco Fresh Market 8 de Octubre y Garibaldi 16 +7.4% +5.5 pps 34.5% Stores Growth vs N-1 Growth vs regular Total company´s stores sales sha
Slide 19: 3Q19 Operating Results: Uruguay
3Q19 Operating Results: Uruguay Solid top line growth and expense control drove margin gains in COP M 3Q19 3Q18 % Var 9M19 9M18 % Var Net Sales 598,234 572,825 4.4% 1,855,857 1,862,951 (0.4%) Other Revenue 6,638 5,892 12.7% 17,419 18,097 (3.7%) FX effect of Net Revenue 604,872 578,717 4.5% 1,873,276
Slide 20: Asset Monetization – Follow up 3Q19 Argentina
Asset Monetization – Follow up 3Q19 Argentina Libertad real estate hedging results amidst a challenging macro Dual retail-real estate High model Sustainable expansion occupancy rate 1st shopping center operator outside • Strategic vacancy of Buenos Aires, 3rd in the Country • Renovation of business
Slide 21: 3Q19 Operating Results: Argentina
3Q19 Operating Results: Argentina Positive performance compared to a negative industry trend in COP M 3Q19 3Q18 % Var 9M19 9M18 % Var Net Sales 156,616 234,264 (33.1%) 648,187 830,893 (22.0%) Other Revenue 9,002 14,552 (38.1%) 32,389 51,494 (37.1%) Net Revenue 165,618 248,816 (33.4%) 680,576 882,387
Slide 22: 3Q19 Consolidated Financial Results
3Q19 Consolidated Financial Results Improved operating performance led to Recurring EBITDA margin gains (+56 bps) in COP M 3Q19 3Q18 % Var 9M19 9M18 % Var Net Sales 3,424,872 3,347,504 2.3% 10,423,901 10,329,634 0.9% Other Revenue 199,597 177,472 12.5% 544,654 493,596 10.3% Net Revenue 3,624,469 3,5
Slide 23: 3Q19 Group Share Net Result
3Q19 Group Share Net Result Group result reverted to a Net Income from improved operational performance Highlights • Positive effect mainly from improved operational performance in Colombia and Uruguay and lower financial expenses. • Negative effect mainly from higher non-recurrent expenses related
Slide 24: 3Q19 Net Debt and Cash at Holding Level
3Q19 Net Debt and Cash at Holding(1) Level Higher CAPEX vs 2018 led to a slight increase in NFD 568 544 Cash (& other assets) Gross debt (financial liabilities & warranties) Net financial debt -3,232 -3,396 -3,800 -3,940 2018 3Q 2019 3Q 5.1% Main highlights NFD at the holding level: ▪ COP$3.40 B as
Slide 25: 3Q19 Conclusions
3Q19 Conclusions LatAm Platform ✓ New perimeter of consolidation excludes Brazil, accounted from 3Q19 as a discontinued operation. ✓ Recurring EBITDA margin expanded by 11.0% to a 7.6% level. ✓ Net income result in 3Q19 driven by improved operational performance in Colombia and Uruguay. ✓ Consistent
Slide 26: Appendices
grupo! Appendices 25
Slide 27: 2019 Outlook
2019 Outlook Colombia • Retail expansion of 18 to 20 stores (from openings, conversions and remodeling), including at least 5 Éxito WOW, 5 Carulla Fresh Market and 10 Surtimayorista stores. • Revenue growth from retail and complementary businesses (mainly related to Real Estate contribution). • Over
Slide 28: Grupo Éxito Strategic Pillars 2019 - 2021
Grupo Éxito Strategic Pillars 2019 - 2021 Leading transformation focusing on customer and retail trends Customer first Our people 3. Digital 4. Best Practices & 5. Sustainable Shared 1. Innovation 2. Omni-channel Transformation Integration Value ▪ Models ▪ E-commerce ▪ Apps ▪ Asset Monetization ▪ Ge
Slide 29: IFRS 16 Adjustments
IFRS 16 Adjustments Quarterly consolidated figures Consolidated Income Statement 3Q19 Adj 3Q19 3Q18 Adj 3Q18 % Var % Var Post Post in COP M Pre IFRS16 3Q19 Pre IFRS16 3Q18 Pre IFRS16 Post IFRS16 IFRS16 IFRS16 Net Sales 3,424,872 - 3,424,872 3,347,504 - 3,347,504 2.3% 2.3% Other Revenue 199,597 - 199
Slide 30: IFRS 16 Adjustments
IFRS 16 Adjustments Consolidated figures YTD Consolidated Income Statement 9M19 Adj 9M19 9M18 Adj 9M18 % Var % Var Pre Post in COP M Pre IFRS16 9M19 Post IFRS16 Pre IFRS16 9M18 Post IFRS16 IFRS16 IFRS16 Net Sales 10,423,901 - 10,423,901 10,329,634 - 10,329,634 0.9% 0.9% Other Revenue 544,654 - 544,6
Slide 31: IFRS 16 Adjustments: Colombia
IFRS 16 Adjustments Colombia Colombia - (pre and post IFRS 16) COLOMBIAPre COLOMBIAAdj3Q19 IFRS163Q19 COLOMBIAPost COLOMBIAPre IFRS163Q19 COLOMBIAAdj3Q18 IFRS163Q18 COLOMBIAPost IFRS163Q18 Income Statement 3Q19 Adj 3Q19 3Q18 Adj 3Q18 % Var % Var Pre Post Pre Post in COP M 3Q19 3Q18 Pre IFRS16 Post I
Slide 32: IFRS 16 Adjustments: Uruguay
IFRS 16 Adjustments Uruguay Uruguay - (pre and post IFRS 16) URUGUAYPre URUGUAYAdj3Q19 IFRS163Q19 URUGUAYPost URUGUAYPre IFRS163Q19 URUGUAYAdj3Q18 IFRS163Q18 URUGUAYPost IFRS163Q18 Income Statement 3Q19 Adj 3Q19 3Q18 Adj 3Q18 % Var % Var Pre Post Pre Post in COP M 3Q19 3Q18 Pre IFRS16 Post IFRS16 IF
Slide 33: IFRS 16 Adjustments: Argentina
IFRS 16 Adjustments Argentina Argentina - (pre and post IFRS 16) ARGENTINAPre ARGENTINAAdj3Q19 IFRS163Q19 ARGENTINAPost ARGENTINAPre IFRS163Q19 ARGENTINAAdj3Q18 IFRS163Q18 ARGENTINAPost IFRS163Q18 Income Statement 3Q19 Adj 3Q19 3Q18 Adj 3Q18 % Var % Var Pre Post Pre Post in COP M 3Q19 3Q18 Pre IFRS1
Slide 34: 3Q19 Consolidated Financial Results
3Q19 Consolidated Financial Results Quarterly consolidated figures in COP M 3Q19 3Q18 % Var 9M19 9M18 % Var Net Sales 3,424,872 3,347,504 2.3% 10,423,901 10,329,634 0.9% Other Revenue 199,597 177,472 12.5% 544,654 493,596 10.3% Net Revenue 3,624,469 3,524,976 2.8% 10,968,555 10,823,230 1.3% Cost of
Slide 35: 3Q19 P&L and CapEx by Country
3Q19 P&L and CapEx by Country Income Statement Colombia Uruguay Argentina Consol in COP M 3Q19 3Q19 3Q19 3Q19 Let Sales 2,673,127 598,234 156,616 3,424,872 Other Revenue 184,834 6,638 9,002 199,597 Net Revenue 2,857,961 604,872 165,618 3,624,469 Cost of Sales (2,183,097) (403,502) (107,209) (2,690,6
Slide 36: 3Q19 Consolidated Balance Sheet
3Q19 Consolidated Balance Sheet Consolidated Balance Sheet Diciembre de 2018 Septiembre de 2019 Consolidated Balance Sheet Diciembre de 2018 Septiembre de 2019 in COP M Dec 2018 Sep 2019 Var % in COP M Dec 2018 Sep 2019 Var % Assets 72,311,162 55,919,553 (22.7%) Liabilities 53,848,693 39,469,408 (26
Slide 37: 3Q19 Consolidated Cash Flow
3Q19 Consolidated Cash Flow Consolidated Cash Flow in COP M Sep 2019 Sep 2018 Var % Profit 815,458 797,034 2.3% Adjustment to reconciliate Net Income 2,599,021 3,274,616 -20.6% Cash Net (used in) Operating Activities (2,252,534) (2,000,730) 12.6% Cash Net (used in) Investment Activities (36,108) (1,
Slide 38: 3Q19 Debt by Country and Maturity
3Q19 Debt by Country and Maturity Net debt breakdown by country 30 September 2019, (millions of COP) Colombia Uruguay Argentina Consolidated Short-term debt 1,411,485 420,738 65,932 1,898,155 Long-term debt 2,808,162 - - 2,808,162 Total gross debt (1) 4,219,647 420,738 65,932 4,706,317 Cash and cash
Slide 39: 3Q19 Holding P&L
3Q19 Holding(1) P&L Income Statement in COP M 3Q19 3Q18 % Var 9M19 9M18 % Var Net Sales 2,675,083 2,546,788 5.0% 7,934,566 7,655,190 3.6% Other Revenue 116,049 109,449 6.0% 293,652 286,838 2.4% Net Revenue 2,791,132 2,656,237 5.1% 8,228,218 7,942,028 3.6% Gross profit 598,402 572,155 4.6% 1,723,975
Slide 40: 3Q19 Holding Balance Sheet
3Q19 Holding(1) Balance Sheet in COP M Dec 2018 Sep 2019 Var % Assets 16,931,625 15,832,751 -6% Current assets 3,914,728 6,846,212 75% Cash & Cash Equivalents 1,885,868 543,765 (71.2%) Inventories 1,398,724 1,612,807 15.3% Accounts receivable 218,109 149,772 (31.3%) Assets for taxes 168,907 358,529
Slide 41: 3Q19 Store Number and Sales Area
3Q19 Store Number and Sales Area Banner by country Store number Sales Area (sqm) 3Q19 Colombia Éxito 246 625,386 Carulla 97 85,836 Surtimax 92 45,111 Super Inter 70 65,754 Surtimayorista 30 31,377 Total Colombia 535 853,464 Uruguay Devoto 60 40,325 Disco 29 33,452 Geant 2 16,411 Total Uruguay 91 90,
Slide 42: María Fernanda Moreno R., Investor Relations Director
María Fernanda Moreno R. Investor Relations Director +574 6049696 Ext 306560 maria.morenorodriguez@grupo-Éxito.com Cr 48 No. 32B Sur – 139, Av. Las Vegas Envigado, Colombia www.grupoÉxito.com.co Éxitoinvestor.relations@grupo-Éxito.com •“The Issuers Recognition -IR granted by the Colombian Stock Exch