Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Q2 2023 Earnings Presentation
37 slides from Almacenes Exito Sa's earnings presentation, August 2023
Slide 1: 2Q23 Financial Results
2Q23 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
This document contains certain forward-looking statements based on data, assumptions and Note on estimates, that the Company believes are reasonable; however, it is not historical data and should forward not be interpreted as guarantee of its future occurrence. Grupo Éxito operates in a competitive
Slide 3: Agenda
Agenda ▪ DR Listing process ▪ ESG strategy ▪ Quarterly highlights ▪ Financial performance ▪ Conclusions and Q&A session 3
Slide 4: Listing Process
SK “© Listing Process ADRs y BDRs
Slide 5: DR listing process update
Potential for unlocking value for Grupo Éxito and its DR listing process shareholders update Resulting shareholding structure • Distribution of ~86% of Éxito DR Listing update Casino Float shares held by GPA (96.52%) 41% 59% • Transaction announcement (Sep 5/22) through ADRs and BDRs (both tier New
Slide 6: Sustainability Strategy
Sustainability Strategy 6
Slide 7: Follow-up ESG strategy YTD
ESG initiatives to generate value: economic growth, Follow-up social development and environmental protection ESG strategy YTD Zero Malnutrition My Planet Sustainable Trade of fruit and vegetables are locally purchased and Children benefited from nutrition Tons of material collected at the bought di
Slide 8: Quarterly Highlights
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Slide 9: 2Q23 Consolidated highlights
High single-digit top line growth (+12.4% on comparable basis1) driven by solid sales performance 2Q23 Consolidated2 in all three countries highlights Net Revenue Net Result SSS3 Recurring EBITDA COP $5.1 B COP -$6,184 M +5.9% (+9.8%1) COP$395,391 M, +6.6%, 7.7% margin (+8.5% vs 2Q22, +12.4%1) (-0.1
Slide 10: Financial Performance
Financial Performance 10
Slide 11: 2Q23 Top Line performance
Consolidated sales grew by 8.2% (+12.3% when 2Q23 Top Line excluding the non-VAT day effect) performance Colombia Uruguay Argentina Consolidated in COP M 2Q23 2Q22 % Var 2Q23 2Q22 % Var 2Q23 2Q22 % Var 2Q23 2Q22 % Var Net Sales 3,505,457 3,384,527 3.6% 1,036,584 771,878 34.3% 359,927 373,833 (3.7%)
Slide 12: 1H23 Performance of innovative models in Colombia
Increased share on Colombia sales from innovation in 1H23 Performance of models ( 41.8%, +1.4 p.p. YoY) Expansion opportunities with accretive contribution to innovative models in EBITDA and mid-term returns Colombia Hypers Supers • Innovative experience • Differentiation and freshness • New generat
Slide 13: 1H23 Performance of innovative models in Colombia
1H23 Performance of Activities to penetrate mom& pops market (share of 33% of the total market*) innovative models in Colombia Cash & Carry of proximity App Mi Surtii Strategic partners “Aliados” • Low-cost value proposition Focused on the traditional channel and • High returns • Focus on institutio
Slide 14: Omni-channel performance in Colombia 1H23
1H23 Solid sales growth (+9.7%), driven by the food Omni-channel1 category performance in Colombia A double-digit share on sales, despite two non-VAT days in the 1H23 12.5% 26% base (15.4~ p.p) (+25% on a comparable basis2) Share on sales Food sales growth Omni-channel sales and share on sales 12.8%
Slide 15: 1H23 Asset and traffic monetization in Colombia
Real estate: a hidden value to the Company´s share 1H23 Asset and traffic valuation monetization in Colombia Real Estate Business Viva Malls1 Innovation as a value proposition 17 assets for a total of 558 K sqm of GLA 97% occupancy rate Leader as shopping malls operator 35% market share in GLA Secur
Slide 16: Real estate coming project Viva Cartagena
Real estate coming project Viva Cartagena 1H23 Asset and traffic monetization in Colombia Viva Cartagena • First shopping resort in LatAm, to join activities between a touristic destination and a shopping center • #1 high income housing development zone in Cartagena • 110,000 sqm of total area expec
Slide 17: Financial services and loyalty monetization
The challenging consumer credit environment led to increased provisions, however, it´s showing early signs of 1H23 Asset and traffic improvement monetization in Colombia 2.0 M cards in stock #3 in cards issued 3.9 Bn COP loan portfolio 387 allied brands (+186% vs 1H22) AAA rating for 13 straight Loy
Slide 18: 2Q23 Operating performance by country
Top line growth across countries and internally efficiencies partially offset by inflationary pressures on the 2Q23 Operating cost/expense structure performance by country Colombia Uruguay Argentina in COP M 2Q23 2Q22 % Var 2Q23 2Q22 % Var 2Q23 2Q22 % Var Net Revenue 3,700,369 3,550,368 4.2% 1,045,2
Slide 19: Consolidated Operating Performance
Solid gross margin gains across countries and efforts to increase productivity led to recurring EBITDA growth (6.6% Consolidated Operating in 2Q23; 7.8% YTD, +12.1% in comparable basis1) Performance 1H23 Recurring EBITDA highlights ➢ Solid commercial performance in Uruguay and Argentina, despite inf
Slide 20: Group share net result
Net income totaled COP$38,934 M as of 1H23 Group share net result Net Result highlights 2Q23 • Positive contribution of international retail operations (in LC) and Colombia (despite the non- VAT day effect), as well as the material positive variation of income tax. • Negative variations from: (i) hi
Slide 21: 1H23 Leverage and cash at holding level
Free cash flow reached COP $92,000 M, a positive outcome amidst economic slow down and higher 1H23 Leverage and cash at investment levels and a comparable basis holding level1 Cash and debt highlights • Dividends from subsidiaries continued to allow the Company’s investment requirements and payments
Slide 22: Conclusions & Q&A session
Conclusions & Q&A session 22
Slide 23: Conclusions
Quarterly double-digit top line growth1 and gross margin gains droved operational performance Conclusions • ADR and BDR spin-off completion expected by 3Q23. • Double-digit consolidated sales growth on comparable basis1, in local currency in all three countries • Recurring EBITDA grew in 2Q and 1H d
Slide 24: Appendices
Appendices 24
Slide 25: Consolidated financial results
Consolidated financial results in COP M 2Q23 2Q22 % Var 1H23 1H22 % Var Net Sales 4,901,361 4,530,238 8.2% 10,138,593 8,905,386 13.8% Other Revenue 217,759 186,977 16.5% 436,681 413,796 5.5% Net Revenue 5,119,120 4,717,215 8.5% 10,575,274 9,319,182 13.5% Cost of Sales (3,753,325) (3,505,354) 7.1% (7
Slide 26: P&L and capex by country
P&L and capex by country Income Statement Colombia Uruguay Argentina Consol in COP M 2Q23 2Q23 2Q23 2Q23 Net Sales 3,505,457 1,036,584 359,927 4,901,361 Other Revenue 194,912 8,692 14,159 217,759 Net Revenue 3,700,369 1,045,276 374,086 5,119,120 Cost of Sales (2,836,991) (671,340) (245,605) (3,753,3
Slide 27: Consolidated balance sheet
Consolidated balance sheet in COP M Dec 2022 Jun 2023 Var % in COP M Dec 2022 Jun 2023 Var % Assets 18,183,289 17,379,523 (4.4% ) Liabilities 9,748,843 9,344,287 (4.1% ) Current assets 5,947,863 5,519,330 (7.2% ) Current liabilities 7,415,394 7,285,080 (1.8% ) Cash & Cash Equivalents 1,733,673 1,393
Slide 28: Consolidated cash flow
Consolidated cash flow in COP M Jun 2023 Jun 2022 Var % Profit 126,611 186,270 (32.0% ) Operating income before changes in working capital 743,994 685,650 8.5% Cash Net (used in) Operating Activities (414,454) (766,309) (45.9%) Cash Net (used in) Investment Activities (269,014) (147,165) 82.8% Cash
Slide 29: Holding P&L
Holding P&L (1) in COP M 2Q23 2Q22 % Var 1H23 1H22 % Var Net Sales 3,508,364 3,388,924 3.5% 7,140,696 6,711,814 6.4% Other Revenue 102,384 87,338 17.2% 208,356 216,413 (3.7%) Net Revenue 3,610,748 3,476,262 3.9% 7,349,052 6,928,227 6.1% Cost of Sales (2,830,218) (2,735,369) 3.5% (5,758,180) (5,431,6
Slide 30: Holding balance sheet
Holding balance sheet (1) in COP M Dec 2022 Jun 2023 Var % in COP M Dec 2022 Jun 2023 Var % Assets 14,761,545 14,295,227 (3.2% ) Liabilities 7,622,557 7,587,090 (0.5% ) Current assets 4,432,647 4,145,525 (6.5% ) Current liabilities 5,455,563 5,613,538 2.9% Cash & Cash Equivalents 1,250,398 920,148 (
Slide 31: Debt by country and maturity
Debt by country and maturity 30 Jun 2023, (millions of COP) Holding (2) Colombia Uruguay Argentina Consolidated Short-term debt 1,506,229 1,516,802 616,741 34,205 2,167,749 Financial liabilities 1,416,330 1,416,330 614,671 34,205 2,065,206 Other financial liabilities 89,899 100,472 2,070 - 102,542 L
Slide 32: Store number and sales area
Store number and sales area Banner by country Store number Sales area (sqm) Colombia Exito 209 620,572 Carulla 106 88,447 Surtimax 76 30,314 Super Inter 59 56,907 Surtimayorista 59 50,582 Total Colombia 509 846,821 Uruguay Devoto 62 40,544 Disco 30 35,252 Geant 2 16,411 Total Uruguay 94 92,207 Argen
Slide 33: 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 34: 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 35: 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 36: 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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