Launch of & Transaction Agreement with
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 exitoinvestor.relations@grupo-exito.com www.grupoexito.com.co
Agenda Part 1: Launch of Cdiscount.com.co Business Description & Rationale Part 2: Grupo Éxito-Super Inter Transaction Super Inter: Key Facts Deal Structure Strategic Rationale Highlights Value Creation Opportunities Q&A Session 3
Cambiar el pollo por demoledor en toda la ppt Nuevo New E-commerce e-commerce en in Colombia New Business Presentation 4
The evolution of the Offline to the Online Grupo Éxito Retail in the world, from the physical to the Omni-channel Pioneer and leader of the Omni-channel in Colombia Physical World WEB Mobility Omnichannel 5
Cdiscount Nro 1 en e-commerce en Francia New Non-food E-commerce Leader in Colombia Joint Venture: Grupo Éxito & Casino Enterprise (70%/30%) Initial investment: USD10 million Novelty first B2C market place in the country Market place Sellers Cdiscount Colombia $ Cdiscount France E-commerce and Omni-channel leader in France Sales*: EUR 1.6 billion. Portfolio* : 5.5 million offers Sellers in Market Place*: 2,800 *Figures as of 2013 $ Clients 6
Taking advantage of Grupo Éxito s local retail know how Complementing Grupo Éxito s Omni channel strategy Product Logistics know-how Local market knowhow Dedicated structure to guarantee speed Commitment with the delivery service quality IT platform On-line experience Online marketing experience Marketplace knowhow 7
Internet in Colombia Colombia had the 3rd largest internet population in LatAm with 25 million users in December 2011. Internet penetration in Colombia is high compared to other Latin American countries: it reached 59.5% in 2012 with 1 additional million users. Sales by Activity E-commerce market 2012 Tourism (Tickets and hotels) Sales * (1) in USD million % Share (2) ~623 50% Bill payment ~324 26% Retail ~124 10% Coupons ~87 7% Others ~87 7% Total ~1,245 100% (1) Source: Survey América Economía Intelligence. Estudio del comercio electrónico en América Latina, VISA.2012 (2) Source: Pagos online estimation on e-commerce market participants 8
Transaction Agreement with
Super Inter: Key Facts Started operations in Cali back in 1992 50 Stores: 33 in Valle del Cauca and 17 in the Coffee region, Sales Area: 53,000 sqm Business Model: Discount format, quality products at low prices Independent market leader with 3.7% national share (around 17.0% in Cali, 22.8% in the coffee region) Competitive Advantages: Specialist in managing fresh categories Strong Private Label portfolio: 20% share of total sales Direct negotiation with local producers and farmers Sales Mix: 100% food. Main categories: Fresh Meat 25%, Fruits and vegetables 10%, Grains10% approx. 11
Transaction Structure Transaction Structure Éxito has signed an acquisition and an operation agreement for 50 stores of Super Inter under the following conditions: Exito will acquire 19 stores in 2014 for COP 200,000 million and will operate the 31 remaining ones through an operational agreement for a fixed annual fee of COP 10,000 million; Use of the Super Inter Brand Licence agreement in order to use Super Inter brands Call option agreement The 31 operated stores will be subject to a call option exercisable in 2015. Conditions and approvals The closing of the transaction is subject to the non objection of the Colombian competition authority (Superintendencia de Industria y Comercio). 11
Strategic Rationale: Highlights Market leadership strengthened at national and regional levels Geographic Footprint Super Inter is the undisputed independent retailer with a leading market share in two regions that represent the 3 rd largest market in Colombia in terms of sales. The deal will consolidate Exito s leadership in a market traditionally dominated by regional other players. Discount Format Expansion Acquiring a player with a well-positioned discount format and brand is in line with Éxito s overall strategy to remain the Risaralda Coffee Region 9 4 Quindío and Caldas 9 9 8 Valle del Cauca undisputable leader of this business model in Colombia. Super Inter is a complementary format to Surtimax in terms of its business model and regional presence. 0 19 33 Significant Synergy Potential and Growth Opportunities A profitable growth vehicle with clear and significant synergies and value creation opportunities for shareholders. 12
Value Creation Opportunities Position Exito as the undisputable leader of the discount format in Colombia. Experienced management team to lead successful transition and integration of the business. Significant potential to develop Éxito's portfolio of complementary services and non-food expertise. Synergies related to cost efficiencies, optimization of supplier conditions and sharing of distribution & logistics best-practices. Super Inter Pro-forma Grupo Exito Sales ~ 425m USD + ~7% Sales Area 53.000 sqm +7% Total Stores 50 +11% Stores Var. 17 Coffee Region + 77% Coffee Region 33 Valle Region + 174% Valle Region Market Share 3.7% + 370 bp FY EPS Accretion N.A. 10% 13