Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Grupo Éxito — Investor Presentation (March 2016)
29 slides from Almacenes Exito Sa's investor presentation, Mar 17, 2016
Slide 1: Corporate Presentation - 2nd Grupo Éxito's Open Day
Corporate Presentation 2nd Grupo Éxito´s Open Day Colombia March 17, 2016 Brazil Argentina Uruguay •“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: 2015 Grupo Éxito's key facts starting point
2015 Grupo Éxito’s key facts starting point Large scale and powerful retail platform in South America Consolidated Net Revenues1: 4 countries in South America Combined GDP of USD$ 10.6 Bn ~300 MM potential customers US$ 3,300 Bn - 80% of Consolidated recurrent 75% of region’s population the region’s
Slide 3: Grupo Éxito: Proven Track Record of Successful Integrations
Grupo Éxito: Proven Track Record of Successful Integrations Acquisition of Acquisition of Acquisition of Alliance with Acquisition of International •Launch of control in Brazilian expansion Viva Brand and 100% of Acquisition of Market share in for Leadership in Outperformed Argentinian shopping supe
Slide 4: Management Structure
Management Structure Colombia Brazil Uruguay CEO CEO GPA General Manager Carlos Mario Giraldo Ronaldo Iabrudi Luis E. Cardoso President Devoto CEO Multivarejo Carlos Mario Diez Luis Moreno(1) Guillermo Destefanis Financial & Corporate Services CFO Chistophe Hidalgo Filipe Da Silva Assaí Belmiro Gome
Slide 5: Grupo Éxito Consolidated Overview
Grupo Éxito Consolidated Overview Strong Leadership Position in Four Countries Combined Group As of Dec 31, 2015 ** Total sales 674 (USD MM) 3,266 5,968 189 10,097 Recurring EBITDA 54 (USD MM) 256 316 16 642 Stores 573 1,941 65 27 2,606 Local Market 45% share1 44% 14.5% (2) 15% Notes: **2015 figures
Slide 6: Omni-channel Strategy
Omni-channel Strategy Reaching all customers at distinct purchasing moments Multi-Brand & Multi-format: E-commerce: Opportunity to complement value proposition Opportunity to replicate expertise • Specialized non-food: 1,014 stores • #6 global e-commerce pure player by sales • US$ 5.3 Bn gross merch
Slide 7: Formats in Colombia
Formats in Colombia 573 stores Well positioned brands & formats 58 stores 262 stores 100 stores 153 stores 58 stores 1,095 At your service A pleasure for Where buying costs less Aliados everyday Surtimax Hypermarkets, Convenience stores Supermarkets & Supermarkets & Convenience stores Convenience st
Slide 8: E-commerce
E-commerce ~ 2% of total sales in Colombia Leading the on-line market Food & non-food First on-line discounter Food products products Non-food products only Click & Collect Premium & imported Market Place Drive-in Recipes Alliance with Groupe Casino App for mobiles Young, dyn
Slide 9: Complementary Businesses
Complementary Businesses Profitable models based on strategic alliances Financial Retail Mobile Virtual Operator Over 700k users JV with Bancolombia 24 months of operations 3rd credit card issuer The cheapest minute in the market 1.8 million cards issued Travel Business Insurance International Money
Slide 10: Summary of Colombia Operation Strengths
Summary of Colombia Operation Strengths Retail Omni-channel leadership and Complementary Business with strong ROI Contribution. Leader in Four Relevant Market Segments (Premium, Mid-market, Discount, Ecommerce). Discount Market - Super Inter + Surtimax + 1095 Aliados, representing 8% Market Share. P
Slide 11: Formats and Brands in Brazil
Formats and Brands in Brazil 1,941 stores GPA formats provide high-quality products for households throughout the country 185 stores 336 stores 311 stores 95 stores Premium Format Hyper & Super Proximity Multi-business Strategy Supermarket & Targeting Brazilian Families Mini Mercado Extra & Low Oper
Slide 12: Diversified Portfolio
Diversified Portfolio Balanced mix sales between food and non-food offers resilience and flexibility Food: 52.3% Non Food: 47.7% Traditional Food Retail: Electronics/Furniture Hypermarkets, Bricks & Mortar Supermarkets, Proximity, Drugstores, Gas Stations, Food Delivery and Commercial Spaces 28.3% 3
Slide 13: Summary of Brazil Operation Strengths
Summary of Brazil Operation Strengths Resilient Food Business with Strong Performance in Assai brand Management strengthening with Focus on Multivarejo Store renovations @ Extra - 62 stores (25% sales) + Commercial strategy repositioning Pao de Acucar - 5 new stores, market share gain, renovation of
Slide 14: Formats and brands in Uruguay
Formats and brands in Uruguay 65 stores Solid growth in a country with high purchase power Supermarkets Supermarkets & Hypermarkets Proximity stores 29 stores 34 stores 2 stores • Outcome positively driven by Devoto and Géant performance. • Market share gain from 42% to 44% in the last 5 years. • Sy
Slide 15: Argentina - Libertad
Argentina - Libertad Third real estate player in Argentina 3rd real estate player, 145k sqm of GLA (leader in Cordoba region) & 50 k sqm of GLA in commercial galleries in 3 years. Food retailer leader in the region of Córdoba. Market share increase of 20 basis points in 2015. Total sales gro
Slide 16: Synergies Plan
Synergies Plan Strong value added through synergies implementation Synergies Follow-up Unlocking synergies Key know-how Expert country Integration office set up Cash & Carry expertise Brazil Margin on additional revenues Initial benefits in 2015 of • Cash & Carry approximately USD $5 million • T
Slide 17: Real Estate Portfolio in Colombia
Real Estate Portfolio in Colombia 310,000 sqm of GLA, 11 Shopping Centers operating and 3 more under construction Shopping Centers Opened 2015 Under Construction Envigado Wajiira Medellín Villavicencio Riohacha GLA: 100.000sqm Villavicencio Buenaventura GLA: 20.000sqm (100% Stake) GLA: 53,000sqm Bue
Slide 18: Real Estate Dual Business Model
Real Estate Dual Business Model Unlocking hidden value • Business expertise in the whole value Current & Expected GLA chain: Developing – Commercialization 600,000 - Operation Opportunity • Income stability 300,000 • Great opportunities to develop the 200,000 business model in Brazil and Uruguay 310
Slide 19: Summarized P&L under IFRS
Summarized P&L under IFRS Solid Net Income growth despite equity tax burden and financial expenses related to debt Consolidated Income Statement FY15 FY14 Millions of Millions of FY15/14 COP COP Net Revenues 33,402,211 10,484,822 218.6% Gross Profit 8,254,435 2,629,421 213.9% Gross Margin 24.7% 25.1
Slide 20: Financial Results by Country
Financial Results by Country Information in IFRS Colombia Brazil Uruguay Argentina Millions of COP FY15 FY14 FY15/14 FY15 FY15 FY14 FY15/14 FY15 Net Revenues 10,622,539 9,812,980 8.2% 19,980,882 2,162,401 671,842 221.9% 637,699 Gross Profit 2,611,361 2,405,740 8.5% 4,660,878 746,695 223,681 233.8% 2
Slide 21: Debt Ratios and Maturity
Debt Ratios and Maturity DFN/Ebitda ratio Holding Debt Maturity 2,000 4 3.8 1,800 1,600 3.5 1,400 3 1,200 1,502 2.5 1,000 2 800 1.5 600 1 400 0.35 200 213 313 313 0.5 0 97 195 195 195 195 195 195 195 195 193 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Holding Consolidated Long Term COP Me
Slide 22: Positive Effect on Profitability Indicators
Positive Effect on Profitability Indicators Clear upside in multiples versus peers EPS expected evolution (4 year plan) Expected effect on ROE (4 year plan) 30.8% 9.6% 6.5% 6.4% Before synergies Synergies run-rate Stand alone Post-transaction including synergies EV/EBITDA & P/E (x) Dividend Yield EV
Slide 23: Grupo Éxito wrap up
Grupo Éxito wrap up Grupo Éxito is the leading retail in South America: Leader in E-commerce, Cash & Carry, Premium and Proximity formats. Significant geographical footprint in 4 countries, bringing the opportunity to reach over 280 million people. Regional leader in omni-channel strategy. #1 in Col
Slide 24: 2016 Perspectives
2016 Perspectives Colombia • High single-digit growth of the top line. • Store expansion with 20k sqm of sales area with Capex between COP$300k and COP$350k million. • Real Estate expansion near to 70,000 sqm of GLA with the opening of Viva Barranquilla and Viva La Ceja. Brazil • Expected Sales grow
Slide 25: Appendixes
QrFUPO Appendixes 25
Slide 26: Ownership Structure
Ownership Structure International ownership structure consolidates best in class LATAM retail platform 54.7% 18.8% / 50% 18.8% / 50% 100% 100% 62.5%* Recent acquisitions % Economic rights % Voting rights * Grupo Exito consolidates Grupo Disco since January 1st, 2015 26
Slide 27: We are a solidary and responsible company
Social Commitment We are a solidary and responsible company A fairer and more competitive country Niños beneiciarios del programa Infancia Sana de la Fundación Éxito, atendidos en el Hogar Infantil Católico Claret en Cali - 2014. 35.529 7.627 Childs between + $18.570 Families supported by the 0 and
Slide 28: Ownership Structure
Ownership Structure As of December 31, 2015 ADR program Other 3.0% Shareholders 10.5% Colombian Casino Pension Groupe Funds 54.8% 15.8% International Funds 15.9% 28
Slide 29: Contact: Investor Relations
www.grupoexito.com.co [email protected] Tel +574 3396560 Contact: Maria Fernanda Moreno R Investor Relations Director •“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 solve