Grupo Éxito
Note on Forward-Looking
Almacenes Éxito S.A.
Investor Relations
www.grupoexito.com.co
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.
Agenda
1. Colombia and Uruguay
Fundamentals
Environment and Opportunities for Retail
2. Grupo Éxito
A Story of Growth and Development
Competitive Advantages
Financial Results
Sources:: Central Banks, DANE, INE, IMF
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
GDP per capita (e)
8,127
15,485
USD
Inflation
2.4%
7.5%
Unemployment
10.4%
6.1%
Interest Rate
4.25%
9.25%
3.9%
52,349
15,485
4.0%
378,713
8,127
9.25%
4.25%
6.1%
10.4%
7.5%
2.4%
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
One of the youngest population in Latin-American : 55%
below 29 years
55%45%
0-30 + 30
Age
Source: DANE
Uruguay: A Dynamic Economy
Highest GDP per capita in the region
Wealthy and urbanized population
Strong GDP growth
43%
25% 23%
Disco & Devoto Tata + Multiahorro Tienda Inglesa
Grupo Éxito
Leader in Both Formal Retail Markets
Formal Retail Market Share
Source: ACV Nielsen Dec ,2011
42.0% 42.9%
17.7%
13.1%
4.9%
Grupo Éxito 2nd competitor 3rd competitor 4th competitor 2010 2011
Formal
48%
Informal
52%
Retail Market Share
Colombia
Grupo Éxito
Leader in the Colombian Formal Retail Market
Top-of-mind Brand Proposal
Covering all the socio-economic segments in Colombia
9
7%
48%
45%
Brand Proposal
Socio-economic levels
High End
Hypermarkets
Supermarkets &
Convenience
A Successful Multi-format Strategy
“All Under the same roof”
Quality service
Value for money
High quality and imported products
A premium offering
Surprising with superior service
Supermarkets &
Convenience
Soft discount format
For popular neighborhoods
High share of Surtimax private label
Bodega
•
Value and convenience
High quality products at affordable
prices
Emphasis on customer service
Supermarkets
Supermarkets
& Hypermarket
225
80
122
5
27
24
1
Local & International Presence
432
Other
Colombia
Uruguay
As of March 31, 2013
484
stores
815,914
sqm
484
stores
815,914
sqm
52
Competitive Advantages
Strong Loyalty Program
High Private Label Penetration
E-commerce Leader
Strong Logistic Network
15 logistic locations
80% Centralization
Barranquilla
Bogotá DC Medellin
Cali
B/manga Pereira
DC
Éxito Card
Third credit card issuer in Colombia
Near 1,7 million cards issued
JV with Bancolombia
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
Complementary Businesses
Drivers of Profitability
Activités
comp.
Financial Results
2012
1Q13
1Q12
Millions of
COP
Millions of
COP
Millions of
COP
1Q13/12
Net Revenues
10,229,673 2,604,463 2,455,425
6.1%
Gross Profit
2,669,801
663,787
625,396
6.1%
Gross Margin
26.10%
25.49%
25.47%
+2 bp
Operating Income
494,167
107,100
100,242
6.8%
Operating margin
4.80%
4.11%
4.08%
+3 bp
Net Income
475,305
89,332
93,754
-4.7%
Net margin
4.60%
3.43%
3.82%
-39 bp
EBITDA
858,725
203,867
191,493
6.5%
543
538
610
743
859
2008 2009 2010 2011 2012
153
147
255
389
475
2008 2009 2010 2011 2012
1,764
1,739
1,864
2,234
2,670
2008 2009 2010 2011 2012
Financial Results
13
Net Revenues (COP$bn)
Gross Profit (COP$bn) and margin (%)
Gross Profit
EBITDA (COP$bn) and margin (%)
Net Income (COP$bn) and margin (%)
Net Income EBITDA
-2.0% +7.6% +17.8% +15.6% 26.1%
24.8%
25.3% 24.9%
24.8%
7,125
6,982
7,510
8,845
10,230
2008 2009 2010 2011 2012
8.4% 8.1% 8.4% 7.7% 7.6% 4.6% 4.4% 4.4% 2.1% 2.2%
Our Key Strategic Drivers
Profitable Growth, Service & Innovation
Improve Working Capital
Guarantee Return on Investments
Strict Cost/Expense Control
Focus on
Customer
Enter Mid-Sized Cities
Saturate Existing Urban Markets
Assure E-Commerce Leadership
Strengthen Complementary Business
Real Estate Developments
Best Customer Service
Enhance CRM
Product Innovation
Joint Business Plan with Key Suppliers
Private Brand Strengthening
Talent Development and Retention
Children Nutrition
Sustainability as Company Culture
5. International
Look Beyond
Synergies with Uruguay
Explore Opportunities in other
Latin American Markets
1. Multichannel expansion
Cover the Country
2. Commercial performance
Accentuate Differentiation
3. Operating excellence
Competitiveness
4. HR & sustainable development
Viva Envigado
Real Estate Projects 2012-2015
Four shopping centers projects already started in 2012
Viva Laureles
Viva Sincelejo
Viva Villavicencio
Location : Medellín
(medium-high class neighborhood)
GLA creation : 6,565 sqm Anchor : Exito Laureles
(14,000 sqm).
Status: Opened (Nov/2012)
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.
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).
Grupo Éxito
Track Record of Profitable Growth
Acquisition:
270 stores Carulla Vivero Casino acquired control Éxito Travel Agency
Alliance: 31 Stores Express Formats
2010
1999
2001
2006
Acquisition :52 stores in Uruguay
Stake of 25% in Exito by
Acquisition: 77 stores
2007
2011
Exito Credit Card
2008
Convenience Format Gas Stations Insurance Business
1949
Foundation of1994
Colombia Stock Exchange listingIssuance of 114 mm shares for international expansion
2012
•Shopping Malls •Highest Expansion
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
Five
Approaches to
Social
Responsibility
Achievement
Uruguay: Value creation opportunities
Stage 1: Ongoing
Stage 2
Stage 3
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
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
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
Ownership Structure
Casino
Groupe
54.8%
Colombian
Pension
Funds
18.7%
International
Funds
15.0%
Other
Shareholders
8.5%
ADR program
3.0%
Carlos Mario Giraldo José Gabriel Loaiza VP Commercial and Logistics Sector experience: 12 years Juan Felipe Montoya Calle VP Human Resources Sector experience: 5 years Jacky Janovich María Fernanda Moreno IR Manager Sector experience: 6 years
* Independent members
Management
Sector experience: 10 years
Chief Executive Officer
CFO
VP Sales and Operations
VP Development and Real Estate
Sector experience: 20 years Sector experience: 3 years Carlos Mario Diez Gómez
Juan Felipe Yarce Filipe da Silva
Board of Directors
Luisa Fernanda Lauforie
Nicanor Restrepo S Felipe Ayerbe Muñoz Guillermo Valencia
Jaramillo
Luis Carlos Uribe
Chairman Philippe Alarcón Yves Desjacques Patrick Careil Arnaud Strasser
*
*
*
Management Team
Sector experience: 18 years Martin Nova VP Marketing VP Éxito brandSector experience: 13 years
Sector experience: 15 years
