Grupo Éxito Corporate Presentation

Transcription

1 Grupo Éxito Corporate Presentation

2 Note on Forward-Looking Statements This presentation may contain forward-looking statements regarding expected developments and expectations about future events. These statements are subject to economic, political, governmental and market conditions, risks and uncertainties, both domestically and globally, which may affect the performance of the economy, the retail industry and the Company overall. Factors such as variations in interest rates, inflation rates, exchange rate volatility and tax rates, among others, may cause actual results, performance and achievements of the Company to differ from the estimates provided at any time. For that reason, the Company does not accept responsibility for any variations or for the information provided by official sources. Almacenes Éxito S.A. Investor Relations

3 Agenda 1. Colombia and Uruguay Fundamentals Environment and Opportunities for Retail 2. Grupo Éxito A Story of Growth and Development Competitive Advantages Financial Results 3. Expansion Strategy & Social Responsibility 3

4 Colombia & Uruguay Two Countries With Sound Macroeconomics 2012 Colombia Uruguay GDP Growth 4.0% 3.9% Total GDP (e) 378,713 52,349 USD m 4.0% 8, % 15,485 GDP per capita (e) 8,127 15,485 USD 2.4% Inflation 2.4% 7.5% Unemployment 10.4% 6.1% 4.25% 7.5% 9.25% Interest Rate 4.25% 9.25% Sources:: Central Banks, DANE, INE, IMF 4

5 Opportunities for Retail Colombia: Favorable Demographics Third country in Latin-American by number of inhabitants (47 million) 79% live in main cities in the Andean region Five regions with different consumption patterns 15% of households from levels 4, 5 and 6 represent 35% of the total household expenditures Age One of the youngest population in Latin-American : 55% below 29 years 45% 55% Uruguay: A Dynamic Economy Source: DANE Highest GDP per capita in the region Wealthy and urbanized population Strong GDP growth Low penetration of formal market 5

6 Grupo Éxito Leader in Both Formal Retail Markets Retail Market Share Formal Retail Market Share 42.0% 42.9% Colombia Informal 52% Formal 48% 17.7% 13.1% 4.9% Grupo Éxito 2nd competitor 3rd competitor 4th competitor Source: ACV Nielsen Dec, % Uruguay 25% 23% Disco & Devoto Tata + Multiahorro Tienda Inglesa 6

7 Top-of-mind Grupo Éxito Brand Proposal Covering Leader in all the the Colombian socio-economic Formal segments Retail Market in Colombia 7% High End 48% 45% Low End Socio-economic levels Brand Proposal 9 7

8 A Successful Multi-format Strategy Hypermarkets All Under the same roof Supermarkets & Quality service Convenience Value for money Supermarkets & Convenience High quality and imported products A premium offering Surprising with superior service Bodega Soft discount format For popular neighborhoods High share of Surtimax private label Supermarkets High quality products at affordable prices Emphasis on customer service Supermarkets & Hypermarket Value and convenience 8

9 Local & International Presence Colombia 432 stores Uruguay 52 stores Other stores 815,914 sqm As of March 31,

10 Competitive Advantages Strong Loyalty Program High Private Label Penetration E-commerce Leader Strong Logistic Network Barranquilla 15 logistic locations Medellin Pereira B/manga Bogotá DC 80% Centralization Cali DC Distribution platforms 10

11 Complementary Businesses Drivers of Profitability Éxito Card Third credit card issuer in Colombia Near 1,7 million cards issued JV with Bancolombia Activités comp. 38% Real Estate 9 Shopping malls in mid-sized cities 1 Shopping mall under Viva brand 60k sqm GLA in shopping malls and 100k in Galleries Insurance More than 140,000 policies issued in the market JV with Grupo Sura Travel Business Network of 64 travel agencies in 22 cities 2nd travel agency in Colombia JV with Avianca Gas Stations 20 gas stations across the country 11

12 Financial Results Q13 1Q12 Millions of COP Millions of COP Millions of COP 1Q13/12 Net Revenues 10,229,673 2,604,463 2,455, % Gross Profit 2,669, , , % Gross Margin 26.10% 25.49% 25.47% +2 bp Operating Income 494, , , % Operating margin 4.80% 4.11% 4.08% +3 bp Net Income 475,305 89,332 93, % Net margin 4.60% 3.43% 3.82% -39 bp EBITDA 858, , , % EBITDA margin 8.40% 7.83% 7.80% +3 bp 12

13 Financial Results Net Revenues (COP$bn) Gross Profit (COP$bn) and margin (%) -2.0% +7.6% +17.8% 7,125 6,982 7,510 8, % 10,230 Gross Profit 24.8% 24.9% 1,764 1, % 1, % 2, % 2, EBITDA (COP$bn) and margin (%) Net Income (COP$bn) and margin (%) EBITDA 7.6% 7.7% % % % 859 Net Income 2.2% 2.1% % % % Note: Billions (bn) defined as 000,000,000; Figures Include Disco and Devoto from 4Q11. 13

14 Our Key Strategic Drivers Profitable Growth, Service & Innovation 1. Multichannel expansion Cover the Country Enter Mid-Sized Cities Saturate Existing Urban Markets Assure E-Commerce Leadership Strengthen Complementary Business Real Estate Developments 5. International Look Beyond Synergies with Uruguay Explore Opportunities in other Latin American Markets Focus on Customer 2. Commercial performance Accentuate Differentiation Best Customer Service Enhance CRM Product Innovation Joint Business Plan with Key Suppliers Private Brand Strengthening 4. HR & sustainable development Drive Superior Service Talent Development and Retention Children Nutrition Sustainability as Company Culture 3. Operating excellence Competitiveness Improve Working Capital Guarantee Return on Investments Strict Cost/Expense Control 14

15 Real Estate Projects Four shopping centers projects already started in 2012 Viva Laureles Location : Medellín (mediumhigh class neighborhood) GLA creation : 6,565 sqm Anchor : Exito Laureles (14,000 sqm). Status: Opened (Nov/2012) Viva Envigado Location : Envigado (medium class neighborhood). GLA creation : Over 100,000 sqm. Anchors : Exito Envigado (13,915 sqm), Homecenter, Flamingo. Status : Stage 0: Homecenter opened, Stage 1&2 under structuring. Viva Sincelejo Viva Villavicencio Location : Sincelejo, intermediate city in the Caribbean coast. GLA creation : 7,000 sqm. Anchors : Exito San Francisco (4,500 sqm) and Royal Film cinemas. Status : Under construction Location : Villavicencio, intermediate city in the oil region. GLA creation : 33,150 sqm. Anchors : Exito Villavicencio (15,000 sqm), Zara (TBC). Status : Under construction. 15

16 Grupo Éxito Track Record of Profitable Growth Issuance of 114 mm shares for international expansion Acquisition : 52 stores in Uruguay Foundation of 1949 Colombia Stock Exchange listing Stake of 25% in Exito by Acquisition: 77 stores Acquisition: 270 stores Carulla Vivero Casino acquired control Éxito Travel Agency 2007 Exito Credit Card Convenience Format Gas Stations Insurance Business 2011 Alliance: 31 Stores Express Formats 2012 Shopping Malls Highest Expansion 16

17 Five Approaches to Social Responsibility Achievement Being a Responsible, Committed Employer Being a Responsible Merchant regarding Suppliers Being a Responsible Merchant regarding Customers Actions against Climate Change and Reducing the Environmental Impact Actions Aimed at Local Development and Solidarity 17

18 Appendix 18

19 Uruguay: Value creation opportunities Stage 1: Ongoing Stage 2 Stage 3 Loyalty Program Integration Disco Mas and Devoto Hipercard cards Cost Synergies Increase % of centralization Cost controlling initiatives: hire own personnel, implementation of Exito s software to optimize check out productivity Sales Mix Optimization Complementary Businesses Development of E-Commerce, consumer credit, travel agencies and the insurance businesses. Capex and Working Capital Cost initiatives: upgrade of logistics processes, centralized workshops for perishables processing Working capital: leverage on skills developed by Éxito in inventory tracking Introduction of New Formats Expansion with proximity and convenience formats Real Estate Optimization Commercial development of adjacent areas into mini-malls and other related activities 19

20 Ownership Structure As of March 31, 2013 ADR program Other 3.0% Shareholders 8.5% International Funds 15.0% Casino Groupe 54.8% Colombian Pension Funds 18.7% 20

21 Management Team José Gabriel Loaiza VP Commercial and Logistics Sector experience: 12 years Juan Felipe Montoya Calle VP Human Resources Sector experience: 15 years Management Chief Executive Officer Carlos Mario Giraldo Sector experience: 18 years Filipe da Silva CFO Sector experience: 10 years Carlos Mario Diez Gómez VP Sales and Operations Sector experience: 20 years Board of Directors Arnaud Strasser Philippe Alarcón Yves Desjacques Chairman Guillermo Valencia Jaramillo * Felipe Ayerbe Muñoz Luisa Fernanda Lauforie Luis Carlos Uribe * * Jacky Janovich Juan Felipe Yarce VP Éxito brand Sector experience: 13 years VP Development and Real Estate Sector experience: 3 years Patrick Careil Nicanor Restrepo S María Fernanda Moreno Martin Nova * Independent members IR Manager Sector experience: 6 years VP Marketing Sector experience: 5 years 21

22 Grupo Éxito