Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Q3 2023 Earnings Presentation
44 slides from Almacenes Exito Sa's earnings presentation, November 2023
Slide 1: 3Q23 Financial Results
3Q23 Financial Results Grupo Éxito “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 This document contains certain forward-looking statements based on data, assumptions, and estimates, that the Company forward believes are reasonable; however, it is not historical data and should not be interpreted as guarantees of its future occurrence. The words “anticipates”, “believes”,
Slide 3: Agenda
Agenda ▪ Spin-off outcome ▪ ESG strategy ▪ Quarterly highlights ▪ Financial performance ▪ Conclusions and Q&A session 3
Slide 4: Spin-off Outcome
\ — CL) 7 == aoa + grupo Nourishing Colombia with Opportunities
Slide 5: Listing of Grupo Éxito shares in 3 markets: NYSE, B3 and BVC
Listing of Grupo Éxito shares in 3 markets: NYSE, B3 Spin-off process executed and BVC Ownership structure and share allocation by market post spin-off 6.6% 6.7% 34% Float 53% 65.7% 41% 80.6% 27.6% 12.8% Aug 23rd Sep 30th 13% NYSE B3 BVC • Grupo Éxito float increased to ~53% Benefits • Shareholder's
Slide 6: Sustainability Strategy
~ fexto grupo Sustainability Strategy
Slide 7: ESG Strategy YTD
ESG initiatives to generate value: economic growth, social development and environmental protection ESG Strategy YTD Zero Malnutrition My Planet Sustainable Trade • Lactatón, Grupo Éxito´s breastfeeding campaign • ICONTEC ratified Carulla Fresh Market, as a Carbon • The "Paissana" brand, launched to
Slide 8: Quarterly Highlights
Quarterly Highlights 8
Slide 9: 3Q23 Consolidated highlights
3Q23 results reflected the positive performance of international operations partially offset by macro headwinds in Colombia and 3Q23 Consolidated1 Argentina and inflationary effects on the cost and expense structures highlights Net Revenue SSS2 Gross Profit Recurring EBITDA3 Net Loss COP $5.1 B +5.6
Slide 10: Financial Performance
grupo exto Financial Performance
Slide 11: Net Revenue performance
International operations grew Retail Sales above local inflation while Colombia reflected consumer slowdown Net Revenue performance Colombia Uruguay Argentina Consolidated % var exc. % var exc. % var exc. in COP M 3Q23 3Q22 % Var 3Q23 3Q22 % Var 3Q23 3Q22 % Var 3Q23 3Q22 % Var FX FX FX Retail Sales
Slide 12: Innovation in formats as a differentiation strategy
Innovation in formats as a differentiation stratgy 9M23 performance of innovative models Hypers Supers • Differentiation and • Innovative experience freshness • New generation of • First carbon neutral food hypermarkets retailer in Latam1 • Omni-channel • Green market for healthy experience nutritio
Slide 13: Surtimayorista, Allies and Misurtii: update on innovative models
Surtimayorista, Allies and Misurtii: Targeting and 9M23 update on associating with the traditional market Innovative Models Cash & Carry Strategic partners App Mi Surtii of proximity • Expansion continued with 14 openings YTD (+8.2 K sqm) Focused on smaller-sized mom&pops • Performance reflected eco
Slide 14: Omni-channel performance
Strong omni-channel performance (+16.8%, 13.5% share on Retail Sales) during 3Q23 driven by food Omni-channel1 sales performance 3Q23 COP $497.6 K M 5.1 M 13.5% +25.5% In Retail Sales (+16.8%) Orders (+45%) Share on Retail Food Sales Sales (12.8% share) Highlights Omni-channel sales and share on sal
Slide 15: Real estate: main business to monetize traffic
Real estate: main business to monetize traffic, solid Update on asset and traffic results benefited by inflation and strong recognition monetization Real Estate Business Viva Malls1 Guaranteed income from leases and stable cash flow ✓ 17 assets ✓ 559 K sqm of GLA Leading shopping (72% share) malls o
Slide 16: Update on Real estate projects
Update on asset and traffic Update on Real estate projects monetization IKEA Viva Envigado Opening of Calle Bistró Villavicencio 99.8% 1st IKEA store in Antioquia Opened on 1st of June 2023 progress 54.3 K sqm of new sales area Handed to IKEA on 17 brands operating (as of Oct) October 13th for final
Slide 17: Puntos Colombia and TUYA
TUYA: Risk management activities to Puntos Colombia: Strong growth and positioning protect fundamentals in line with the banking sector 1.7 M cards in stock Provision levels and risk coverage continued significantly better than legal requirements Loyalty platform PCO 3.6 B COP AAA rating Loan Portfo
Slide 18: Grupo Disco Uruguay: minority stake and acquisition of 2 stores
Grupo Disco Uruguay: Acquisition of minority stake of 6.66% Acquisition of 2 stores Minority stake acquisition 2 Independent supermarket stores (+836 sqm of sales area) September 4th Currently Devoto Hipervital Before Opened on August 15th Located in Av.Giannattasio, Ciudad de la Costa, outside of M
Slide 19: Argentina: Retail Sales and real estate
Solid Retail Sales in local currency, strong performance of the real estate business and the Cash and Carry format Argentina Real Estate Business #3 shopping mall operator in Argentina in terms of GLA1 • 900 to 1200 sqm of sales areas • 1,600 SKUs 14 Premises • Focus on food and beverages • Great pr
Slide 20: Operating performance by country
International operations grew Retail Sales above CPI and Operating performance by favour expense dilution and Uruguay posted gross margin country gains Colombia Uruguay Argentina CONSOLIDATED % var exc. % var exc. % var in COP M 3Q23 3Q22 % Var 3Q23 3Q22 % Var 3Q23 3Q22 % Var 3Q23 3Q22 % Var FX FX e
Slide 21: Consolidated operating performance
Cost control amidst inflationary pressures partially offset by the negative FX effect in Argentina and Consolidated operating Colombia macro head winds performance Highlights • Other revenue growth (+8.2%) offset by FX effects in Argentina (-62%) and Colombia outcome during 3Q23, affected by: in COP
Slide 22: Net Income (Loss) result
Net loss during 3Q23 reflected negative variations of demand slowdown, expenses related to the spin-off Net Income (Loss) result process, TUYA share of profits and higher interest rates 3Q23 Variations of Net Income (Loss) result Highlights • Net loss during 3Q23 reflected the positive variations of
Slide 23: Leverage and cash at holding level
Free cash flow of COP $103,000 M despite the economic 3Q23 Leverage and Cash at slowdown driven by improved management of working holding level1 capital 0.6 0.7 Leverage and cash highlights Cash (& other assets) • Dividends from subsidiaries continued contributing to the company’s CapEx and Gross de
Slide 24: Conclusions & Q&A session
Conclusions & Q&A session 24
Slide 25: Conclusions
3Q23 results reflected the positive performance of international operations partially offset by macro headwinds in Colombia and Conclusions Argentina and inflationary effects on the cost and expense structures •Spin-off and listing processes completed, followed by higher traded volumes of securities
Slide 26: Appendices
Appendices 26
Slide 27: Glossary and Notes
Glossary and Notes Notes: • Numbers are expressed in long scale, COP billion represent 1,000,000,000,000. • Growth and variations are expressed in comparison to the same period last year, except when stated otherwise. • Sums and percentages may reflect discrepancies due to rounding of figures. • All
Slide 28: Consolidated Income Statement
Consolidated Income Statement in COP M 3Q23 3Q22 % Var 9M23 9M22 % Var Retail Sales 4,912,100 4,901,047 0.2% 15,050,693 13,806,433 9.0% Other Revenue 219,377 202,798 8.2% 656,058 616,594 6.4% Net Revenue 5,131,477 5,103,845 0.5% 15,706,751 14,423,027 8.9% Cost of Sales (3,825,340) (3,776,016) 1.3% (
Slide 29: Income Statement by Country
Income Statement by Country Colombia Uruguay Argentina in COP M 3Q23 3Q22 % Var 3Q23 3Q22 % Var 3Q23 3Q22 % Var Retail Sales 3,618,518 3,534,482 2.4% 936,993 872,514 7.4% 356,605 494,474 (27.9%) Other Revenue 195,754 172,118 13.7% 8,865 8,856 0.1% 14,763 21,876 (32.5%) Net Revenue 3,814,272 3,706,60
Slide 30: Income Statement and CapEx by Country
Income Statement and CapEx by Country Income Statement Colombia Uruguay Argentina Consol Colombia Uruguay Argentina Consol in COP M 3Q23 3Q23 3Q23 3Q23 9M23 9M23 9M23 9M23 Retail Sales 3,618,518 936,993 356,605 4,912,100 10,754,318 3,135,046 1,161,952 15,050,693 Other Revenue 195,754 8,865 14,763 21
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet in COP M Sep 2023 Dec 2022 Var % Liabilities 8,846,732 9,748,843 (9.3% ) Assets 16,689,571 18,183,289 (8.2% ) Current liabilities 6,897,383 7,415,394 (7.0% ) Current assets 4,982,164 5,947,863 (16.2% ) Trade payables 4,065,295 5,651,303 (28.1%) Cash & Cash Equivalents 1,09
Slide 32: Consolidated Cash Flow
Consolidated Cash Flow 32 Note: Consolidated data include figures from Colombia, Uruguay and Argentina.
Slide 33: Holding Income Statement
Holding Income Statement1 in COP M 3Q23 3Q22 % Var 9M23 9M22 % Var Retail Sales 3,618,404 3,535,836 2.3% 10,759,100 10,247,650 5.0% Other Revenue 100,086 87,994 13.7% 308,442 304,407 1.3% Net Revenue 3,718,490 3,623,830 2.6% 11,067,542 10,552,057 4.9% Cost of Sales (2,956,656) (2,861,824) 3.3% (8,71
Slide 34: Holding Balance Sheet
Holding Balance Sheet1 in COP M Sep 2023 Dec 2022 Var % Liabilities 7,314,351 7,622,557 (4.0%) Assets 13,816,804 14,761,545 (6.4% ) Current liabilities 5,438,695 5,455,563 (0.3%) Current assets 3,716,004 4,432,647 (16.2% ) Trade payables 3,042,535 4,319,342 (29.6%) Cash & Cash Equivalents 674,950 1,
Slide 35: Debt by country and maturity
Debt by country and maturity Net debt breakdown by country 30 Sep 2023, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 1,692,688 1,710,949 466,325 29,166 2,206,440 Financial liabilities 1,601,970 1,601,970 463,932 29,166 2,095,069 Other financial liabilities 90
Slide 36: Store number and Retail Sales area
Store number and Retail Sales area Banner by country Store number Sales area (sqm) Colombia Exito 205 625,460 Carulla 110 89,210 Surtimax 77 31,655 Super Inter 59 56,907 Surtimayorista 60 53,483 Total Colombia 511 856,716 Uruguay Devoto 64 41,324 Disco 30 35,308 Geant 2 16,411 Total Uruguay 96 93,04
Slide 37: Accounts Reconciliations
Accounts Reconciliations Exchange Rates Effects on Results 3Q23 Net Revenue Growth in LC Growth in COP FX effect Uruguay 8.6% 7.3% -1.2% Argentina 190.3% -28.1% -75.2% Consolidated 9.1% 0.5% -7.8% Recurring EBITDA Growth in LC Growth in COP FX effect Uruguay -7.5% -8.6% -1.2% Argentina 241.3% -15.4%
Slide 38: Accounts Reconciliations
Accounts Reconciliations Recurring EBITDA and Adjusted EBITDA in COP M 3Q23 3Q22 9M23 9M22 Operating Income (EBIT) 136,517 239,430 549,223 684,773 Cost D&A 26,267 24,148 79,132 72,866 Expense D&A 139,636 129,340 423,063 368,877 EBITDA 302,420 392,918 1,051,418 1,126,516 in COP M 3Q23 3Q22 9M23 9M22
Slide 39: Accounts Reconciliations
Accounts Reconciliations Recurring Income of the Real Estate Business in Colombia 3Q23 3Q22 Var 9M23 9M22 Var Income from concessionaires 22,085 20,962 5.4% 71,310 64,944 9.8% Income from building administration 13,244 11,046 19.9% 39,210 32,545 20.5% Income from property rent 70,809 61,820 14.5% 20
Slide 40: Accounts Reconciliations
Accounts Reconciliations Free Cash Flow Note: Free cash flow (FCF) = Net cash flows used in operating activities + Net cash flows used in investing activities + Variation of collections on behalf of third parties + Lease liabilities paid + Interest on lease liabilities paid (using variations for the
Slide 41: 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 42: ESG strategy
ESG strategy Six pillars with clear purposes, strategic focus and contribution, aligned with Sustainable Development Goals Work towards the eradication of Environmental protection Promote sustainable trade chronic child malnutrition in • Actions to manage climate practices Colombia by 2030 change •
Slide 43: 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, +161 allied #1 shopping brands and +6.2 M clients mall operator Multi-banner and in Colombia multi-format retail structure #3 rea
Slide 44: 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,