Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Q3 2022 Earnings Presentation
35 slides from Almacenes Exito Sa's earnings presentation, Nov 4, 2022
Slide 1: 3Q22 Grupo Éxito Financial Results
3Q22 Grupo Éxito Financial Results November 4, 2022 “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: Éxito DR´s listing
Change in structure and increased float & shareholder´s base A Pre B Post Capital structure: pre & post transaction Casino Float Casino Float Éxito DR´s 41% 59% 41% 59% • A simplified governance structure listing 100% New Float (CBD) (CBD) • Non-expected operational GPA2 Empreendiment ~53% ~34% ~13%
Slide 5: Éxito DR´s listing timeline
Illustrative timeline for the Transaction 1 Announcement of the preliminary analysis by the Board of Directors September 6 Éxito DR´s listing 2 Transaction preparation (creditors’ validation, approvals on the Until December Transaction, ADR and BDR listing, among others) 2022 Approval period by GPA
Slide 6: Consolidated financial & operating highlights
3Q22 Consolidated financial(1) & operating highlights Double-digit top line increase (22.6%) and cost efficiencies despite inflationary pressures, led to Recurrent EBITDA growth (12.9%) above last 2-year levels 3Q22 Net Sales Recurrent EBITDA Omni-channel share Highlights SSS(2) +19.6% +23.1% +12.9%
Slide 7: ESG Strategy Follow-up YTD
ESG Strategy Follow-up YTD ESG initiatives to generate value: economic growth, social development and environmental protection Zero malnutrition My planet Sustainable trade • 14,000 tons of reduced CO2 emissions • 45,794 children benefited from nutrition • 90% of fruit and vegetables purchased (5%of
Slide 8: Net Sales & SSS performance in Colombia
3Q22 Net Sales & SSS performance in Colombia Solid sales(1) growth versus the last 2 years levels, driven by commercial dynamism, traffic gains (13%) and omni-channel performance (+23.2%) 3Q22 9M22 Low-cost Low-cost & Other (2) & Other (2) Variations SSS (1) 14.2% 13.0% 17.3% 17.0% 21.0% 22.1% 18.1%
Slide 9: Performance by segment
3Q22 Performance by segment Solid mid-teens growth (1) in sales and SSS driven by innovation; to highlight, the stronger levels of Surtimayorista (36.6%, and 29.8% respectively) Éxito: Carulla: Low-cost & Other(2): • Sales (1) +14.6%, SSS(1) +13.0% • Sales (1) +16.5%, SSS (1) +17.3% • Sales(1) +21.4
Slide 10: Innovation in models & formats as of 9M22
Innovation in models & formats as of 9M22 Increased share on Colombia sales from innovation in models and formats (39%, +340 bps QoQ) Total banner 210 104 60 42 stores Current stores of 42 (+1 QoQ) new model / format 26 (+6 QoQ) 26 (+4 QoQ) 35 (+6 QoQ) Expansion (1) potential 45 Full / 70 Econo 38 f
Slide 11: Omni-channel follow-up
3Q22 Omni-channel(1) follow-up Strong growth in sales (+23.2%) and in orders (+115%) Total Sales Share on sales(2) Orders 3Q22 Highlights 3.5 M (+115%) MCOP $426K (+23.2%) 11.9% (vs 12.4% in 2Q22) Omni-channel highlights • A low double-digit share on sales, despite one additional non-VAT day in the
Slide 12: 9M22 Asset and Traffic Monetization
9M22 Asset and Traffic Monetization Boosted commercial dynamism strengthened financial retail and the loyalty coalition Financial Retail Puntos Colombia • 485,000 cards issued (+68%) • 2.5 M cards in stock • Loan portfolio of COP $4.6 B (+46%) ✓ 158 allied brands • Lower NPL 30 levels (mid single-di
Slide 13: Asset and Traffic Monetization: Real Estate
Asset and Traffic Monetization Real Estate: a hidden value to the Company´s share valuation Real Estate Business V i v a M a l l s (1) The most important complementary business and 18 assets and 568k of GLA through the investment contributor to margins vehicle In COP M 9M22 9M21 % Var FY2021 Occupan
Slide 14: Operating Results: Colombia
3Q22 Operating Results: Colombia Solid double-digit top line growth and Recurring EBITDA gains despite inflationary effects on price investment, and at cost/expense levels in COP M 3Q22 3Q21 % Var 9M22 9M21 % Var Net Sales 3,534,482 3,045,630 16.1% 10,238,174 8,456,876 21.1% Other Revenue 172,118 16
Slide 15: Operating Results: Uruguay
3Q22 Operating Results: Uruguay Strong top line growth (+11.7%(1)) and operating efficiencies drove Recurring EBITDA gains in COP M 3Q22 3Q21 % Var 9M22 9M21 % Var Net Sales 872,514 647,716 34.7% 2,405,612 1,898,958 26.7% Other Revenue 8,856 6,258 41.5% 22,584 18,382 22.9% Net Revenue 881,370 653,97
Slide 16: Operating Results: Argentina
3Q22 Operating Results: Argentina Top line grew 2.3x(1) and Recurring EBITDA 3.2x in 3Q and 5.4x in 9M in COP M 3Q22 3Q21 % Var 9M22 9M21 % Var Net Sales 494,474 288,943 71.1% 1,163,070 753,511 54.4% Other Revenue 21,876 12,512 74.8% 48,467 24,046 101.6% Net Revenue 516,350 301,455 71.3% 1,211,537 7
Slide 17: Consolidated Financial Results
3Q22 Consolidated Financial Results Double-digit top line growth and Recurring EBITDA margins (12.9%) above pandemic and pre- pandemic despite inflationary pressures in the region in COP M 3Q22 3Q21 % Var 9M22 9M21 % Var Net Sales 4,901,047 3,982,284 23.1% 13,806,433 11,108,912 24.3% Other Revenue 2
Slide 18: Group Share Net Result
3Q22 Group Share Net Result Solid operating performance partially offset by higher provisions of TUYA and financial expenses, inflationary adjustments, and a lower deferred tax basis Highlights • Positive variations of (i) retail performance, (ii) complementary businesses mainly real estate, and (ii
Slide 19: Debt and Cash at Holding Level
3Q22 Debt and Cash at Holding(1) Level NFD improved COP $262,000 M (before the LTM payment of dividends and buyback operation of near to COP $554,000 M) in thousand million COP Q3 - LTM 2022 Q3 - LTM 2021 Variation EBITDA 1,063 969 9.7% Operational results before WK 885 805 10.0% Lease liabilities a
Slide 20: Conclusions
3Q22 Conclusions Double-digit top line increase (22.6%) and cost efficiencies despite inflationary pressures, led to Recurrent EBITDA growth (12.9%) above pre-pandemic levels Consolidated • Strong net sales (+23.1%) boosted by commercial dynamism, omni-channel growth (24.4%) and contribution of inno
Slide 21: Appendices
Appendices
Slide 22: 3Q/9M22 Consolidated Financial Results
3Q/9M22 Consolidated Financial Results in COP M 3Q22 3Q21 % Var 9M22 9M21 % Var Net Revenue 5,103,845 4,163,857 22.6% 14,423,027 11,679,716 23.5% Gross Profit 1,303,681 1,061,678 22.8% 3,665,051 3,037,846 20.6% Gross Margin 25.5% 25.5% 5 bps 25.4% 26.0% (60) bps Total Expense (1,058,171) (845,573) 2
Slide 23: P&L and Capex by Country
3Q22 P&L and Capex by Country Income Statement Colombia Uruguay Argentina Consol in COP M 3Q22 3Q22 3Q22 3Q22 Net Sales 3,534,482 872,514 494,474 4,901,047 Other Revenue 172,118 8,856 21,876 202,798 Net Revenue 3,706,600 881,370 516,350 5,103,845 Cost of Sales (2,868,018) (572,251) (336,261) (3,776,
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Dec 2021 Sep 2022 Var % in COP M Dec 2021 Sep 2022 Var % Assets 16,901,179 17,245,252 2.0% Liabilities 8,872,702 8,931,912 0.7% Current assets 5,834,432 5,363,144 (8.1%) Current liabilities 6,518,400 6,605,094 1.3% Cash & Cash Equivalents 2,542,651 1,175,637 (53.8
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow in COP M Sep 2022 Sep 2021 Var % Profit 279,840 338,661 (17.4%) Adjustment to reconciliate Net Income 1,029,367 894,398 15.1% Cash Net (used in) Operating Activities (763,937) (720,013) 6.1% Cash Net (used in) Investment Activities (340,932) (389,329) (12.4%) Cash net provided
Slide 26: Debt by Country and Maturity
Debt by Country and Maturity Net debt breakdown by country 30 Sep 2022, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 989,702 1,005,329 648,450 - 1,653,779 Long-term debt 604,432 604,432 - 0 - 604,432 Total gross debt (1) 1,594,134 1,609,761 648,450 - 2,258,21
Slide 27: 3Q/9M22 Holding P&L
3Q/9M22 Holding(1) P&L in COP M 3Q22 3Q21 % Var 9M22 9M21 % Var Net Sales 3,535,836 3,046,957 16.0% 10,247,650 8,462,717 21.1% Other Revenue 87,994 92,008 (4.4%) 304,407 340,005 (10.5%) Net Revenue 3,623,830 3,138,965 15.4% 10,552,057 8,802,722 19.9% Cost of Sales (2,861,824) (2,452,314) 16.7% (8,29
Slide 28: 3Q/9M22 Holding Balance Sheet
3Q/9M22 Holding(1) Balance Sheet in COP M Dec 2021 Sep 2022 Var % in COP M Dec 2021 Sep 2022 Var % Assets 14,422,470 14,381,962 (0.3%) Liabilities 7,541,065 7,255,947 (3.8%) Current assets 4,687,546 3,986,712 (15.0%) Current liabilities 5,137,135 4,986,357 (2.9%) Cash & Cash Equivalents 2,064,600 62
Slide 29: Store Number and Sales Area
Store Number and Sales Area Banner by country Store number Sales Area (sqm) Colombia Exito 210 620,015 Carulla 104 88,669 Surtimax 67 28,855 Super Inter 60 57,008 Surtimayorista 42 41,031 Total Colombia 483 835,578 Uruguay Devoto 58 40,042 Disco 30 35,252 Geant 2 16,411 Total Uruguay 90 91,705 Argen
Slide 30: 2022E Outlook
2022E Outlook • Top line growth benefited by innovation, omni-channel and complementary businesses • To maintain Recurring EBITDA levels at consolidated level considering inflationary pressures on expenditure • Omni-channel to represent a high-single digit share on consolidates sales • Expansion(1)
Slide 31: 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 32: 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 33: 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 34: Investor Relations contacts
María Fernanda Moreno R. Teresita Alzate Head of Investor Relations Investor Relations Executive +(57) 312 796 2298 +(574) 6049696 Ext 306560 [email protected] [email protected] 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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