Corporate Presentation - GPA RI
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March 2021 Corporate Presentation
Disclaimer
Statements contained in this release relating to the business outlook of the Company, projections of operating/financial results, growth prospects of the Company and market
and macroeconomic estimates are merely forecasts and are based on the beliefs, plans and expectations of Management in relation to the Company’s future. These expectations
are highly dependent on changes in the market, Brazil’s general economic performance, the industry and international markets, and hence are subject to change.
2
GPA Consolidated GPA Brazil Grupo Éxito
3
GPA Consolidated GPA Brazil Grupo Éxito
4
We Are the #1 Food Retailer in South America, with a Diversified Portfolio of
Leading Brands in Brazil, Colombia, Uruguay and Argentina
Food retailer Food retailer and One of the largest retail
R$ 50.4 bn R$ 3.9 bn (7.8% margin)
in South America1 food e-commerce in employer in South America
2020 Net Revenue 2020 EBITDA
1,502 stores Brazil and Colombia 98K employees
2020
o Stores: 873
o Net Revenue: R$28.3 bn
o Stores: 513 34% 35% 56% 56% o EBITDA: R$2.3 bn
o Net Revenue: R$17.1 bn o EBITDA Margin: 8.0%
o EBITDA: R$1.4 bn o Market share: 14%
o EBITDA Margin: 8.3%
o Market share: 31%
% %
o Stores: 25
o Net Revenue: R$1.2 bn 2% 0% o Stores: 91
Share Share
o EBITDA: R$16 mm o Net Revenue: R$3.7 bn
of Revenue of EBITDA
o EBITDA Margin: 1.4% o EBITDA: R$372 mm
8% 9% o EBITDA Margin: 10.3%
o Market share: 2%
o Market share: 43%
Source: Nielsen and Colombia market share from Supersociedades – Information of Dec/2020 for Brazil, Argentina and Uruguay; 2019 for Colombia 5
Note: 1) Leadership based on sales
Successful Management Execution Driving Strong Results: 2020 vs. 2019
SSS Net Revenue Digital Adj. EBITDA
Growth Growth Penetration Margin
+12.4% +6.3% 4.8%2 8.0%
+300 bps +80 bps
+7.3%1 +5.9%1 12.4%3 8.3%
+790 bps -10 bps
Note:
1. Constant currency
2. Gross Sales Digital / Gross Sales Food Category
3. Net Sales Digital / Total GMV; related to Éxito Colombia 6
Highest Commitment to ESG Principles with Strong Market Recognition
Our Group is Part of Key Sustainability Indexes Our Recent ESG Initiatives and Achievements
Across the Globe
A
Morgan Stanley Capital International
Financial Times Stock Exchange (MSCI)
(FTSE4GOOD)
B3 Corporate Sustainability Index
B
Carbon Disclosure Programme
(ISEB3) (CDP)
The only food retailer
Carbon Efficient Index
(ICO2)
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Top Management with Unique Experience in Food Retail and a Company with
the Highest Governance Standards
Jorge Faiçal Guillaume Gras Luiz Henrique Costa Laurent Cadillat Carlos Mario Giraldo Ruy Souza Jacky Yanovich
CEO GPA CFO GPA COO GPA CDO GPA CEO Éxito CFO Éxito COO Éxito
# Years in Retail +25 +16 +7 +20 +25 +5 +20
Experience
Experienced Board Governance Highlights
Arnaud Hervé Rafael Luiz Augusto
Strasser Daudin Russowsky Castro Neves Corporate Governance and
Co-VP Member Member Independent Member Audit Committee Sustainability Committee
+20 +17 +8 +9
People and Financial Committee
Jean-Charles Remuneration Committee
Naouri
President
+35 Innovation and Digital
Listed on Novo Mercado
Transformation Committee
Ronaldo Christophe Renan Eleazar de
Iabrudi Hidalgo Bergmann Carvalho Filho
# Years in Retail Co-VP Member Independent Member Independent Member
+8 +25 +20 8
GPA Consolidated GPA Brazil Grupo Éxito
9Focusing on Four Key Pillars
Scale-up Our Organic Expansion Growth and Increase Hyper
Digital Platform of Premium Maturation of Profitability
Formats Super Regional
Rewards Engagement
s
p
A
1P
Stores
Ecommerce
Solutions Frequency
Marketplace Websites
LastMile
Data Insights
Fulfilment GPALOG
Media
DCs
27% 17% 43%
of gross sales of gross sales of gross sales
44%
of gross sales
10Digital Ecosystem: Important growth lever
+ 21MM +2.7 x
Evolution of food
online sales Shipment from Stores / Click & Collect
Customers Average omnichannel
289 stores dec/20 vs 120 in dec/19, around
+3X registered in the customer spend vs
52% of online sales loyalty programs B&M store customer
R$1.1 Bi
5% share in food
Shipment from DCs
Biggest coalition of
6 DC´s by the country (4 new DC´s in 4Q20) in Brazil retail market
R$ 0.4 Bi order to support sales growth of 128% in 4Q20
2% share in food
+60 MM of potencial clientes with low
level of overlap between GPA and RD
Last Milers
355 stores in 32 cities (vs 55 stores in 18 cities Launched in October/2020
2019 2020 in dec/19), +543% of GMV and +316% in and embraced by 1 million customers
number of orders in the first 7 weeks
14%
Market share
80% of activation and 30% of
transversal use in coalition (clients
navigation in both companies) in early
GPA Marketplace Strengthening Delivery radius stages of operation
growth verticals in 1P expansion
New retail verticals planed for 2021
12Strenghtening of GPA digital plataform| IDP doubles the number of omnichannel
clients, who spend an average 2.7x more than a B&M store customer
+ COMPLETE ASSORTMENT IN FOCUS CATEGORIES
E-commerce 1P Core Business
Grocery
Personal E-commerce 3P IN New Business
Care
• Complete basket experience Fresh
• Destination categories / complementary
Cleaning
• Personalized recommendations • Target of 400k SKUs in 2021
• Continuos geographical expansion Craft Beers Pet Care
• Accelerate Register Sellers / SKUs
+4 DCs and +169 stores in 2020 • Strict control of Client Service
+New sales regions for 2021 Wines & • Accelerate Media Performance
Baby Care
Liquors
Auto Care Home Care
E-commerce 3P OUT Change Business
+ GMV
• Collaborative Platform: Be wherever the + Market-share
customer is!
+ Recorrência
• Specialization as a Seller in other Market
Places + Network effect
• Multiples Last Milers
13Distinguished B&M Portfolio Creating Economics Moats to Enhance the
Largest Digital Food Retail Platform
Frequency + Nationwide We Already Own the Customer
Top of Mind Brands
Recurrence Logistics in Place (Massive Database)
Food (mainly fresh) as +800 Stores / Hubs 21 mm
Our Core customers
Last Mile Capabilities
registered
Profitability Strategy to People: Our Most
Cashflow Dynamics
Deliver One-Stop-Shop Valuable Asset
Core / Technology Capex Already Agile Methodology
Higher Margin = 1P Deployed
Talent Attraction & Retention
Fulfillment / Reinvest FCF
Take Rate = 3P Marginal Cost at Stores Partnership with Tech
Companies
Limited CAC (Mainly Retention)
14This is Our Coalition
60+ mi 82%
Loyalty
6.4x
penetration3 avg. ticket4
client base
Platform Relationship
OMNICHANNEL
CLIENTS
Consumption
Strategy 198%
growth1
2,7X higher
PIX
Enabled in all
12% stores
Network Effect penetration2
Digital
E-commerce FIC
R$1.1 bn
+250mm annual visits
Payment
GMV
Customer
Identity
Open Banking
14% Platform
mkt share
21+ mm 60%
+100 startups of multichannel
Customers
and scale-ups plugged reig
clients in e-
commerce
25 multidisciplinary squads
in digital Logistics Data
Insights
Innovation in the off environment Fulfillment Services Monetization
with more than 200 self checkout Services
Note:
Click & Collect Media
1. E-commerce 9M20 vs 9M19
2. Sales through digital channels at Pão de Açúcar as of 3Q20 In 289 stores
3.
4.
Pão de Açúcar sales to loyal customers
Loyal customer using APP (with My Rewards and My
(vs 120 in 2019) 1 hour 15
Discounts) vs loyal customer without APP deliveryExpanding Our Digital Platform to Support Market Share Growth
We Are Here
BUILT Jan/21 ROADMAP
Pet Auto
Fulfillment
Homeware Toys Personal Care New payment services Market share
Multiple delivery solutions:
solutions
Enhance 3P: digital wallet expansion
• 289 stores click &
VALUE OF OUR PLATFORM
Collect Huge potential to be captured
• 32 cities last mile
Insights Network
Food e-commerce effect
14% of mkt share
+ penetration in existing
regions and expansion to
Boost 1P categories: new regions
strengthen existing verticals
GMV to expand mkt share Data monetization:
+ new DCs
R$ 1.1bn marketing of media - using
+37 transit points
purchase frequency and
+170 same day / click &
Baby Products Wine customer base
collect stores
Loyalty programs Launch 3P +9 cities with last mile
21mm coverage
Beer Cleaning
APPs Products
(Cliente Mais and
Clube Extra)
PLATFORM MATURITY
Distinguish B&M assets with food as core (high Develop and complete our Customer knowledge platform fully
frequency) contributing to a leading 1P platform value proposition integrated generating network effects
16What is Our Strategy in Each Format?
Enhancing Value Proposition Regional Positioning Organic Expansion Organic Expansion
Competitiveness in grocery Better price positioning Best shopping experience Stores strategically located in areas
Value Proposition Quality in fresh Focus on fresh Increased fresh offer with high flow of people
Streamline non-food & specialties Store layout similar to regional players New payment and digital solutions Everyday Neighborhood Format
31 closed or converted to Assaí
Portfolio 169 stores conversions (2018-20) 46 G7 stores New stores concepts including
(2016-2020)
Repositioning 6 stores to be converted in 2021 6 stores to be converted in 2021 coffee shop and wine house
23 repositioned in 2020
Format maturation
Accelerated expansion Accelerated expansion
Strategy 80 stores to be repositioned Regional expansion
Maintenance of high profitability Maintenance of high profitability
(organic + M&A)
Format 11% 19% 12% 7%
Performance Sales Growth Sales Growth Sales Growth Sales Growth
(2020 vs. 2019)
Strong growth in the first year Relevant growth in its first year 100% success in 2019 openings,
Repositioned Growth above the control group
and consistent growth in the of operation followed by with sales level above mature
Stores Performance on sales and on EBITDA
second year of operation acceleration in the second year stores and increased profitability
17Key Takeaways
Focus on Executing Our Strategy
Strategically Focused on Food Retail
#1 Food Retailer and Food E-commerce, Serving All Client Profiles
Through Our Multiformat Strategy
Digital Platform Strategy
Integration of our Unique Omnichannel Portfolio with a Qualified
and High recurrence Customer Base, Driving Growth
Improvement in All KPIs
Operational Excellence, Continuous Innovation and
Strengthening Value Proposition in Selected Formats
Multiple Levers of Growth and Low Leverage to Seize Opportunities
Strong Organic Growth of Premium and Neighborhood Formats
Experienced & Engaged Management Team and High ESG Standards
18GPA Consolidated GPA Brazil Grupo Éxito
19Grupo Exito: an absolute food retail market leader in Colombia and Uruguay
Leading market position, with a comprehensive coverage of customers and markets Top-of-mind with customers
Brands and formats for all segments of the population Reputable brand, with strong recognition
1
Brand Awareness
Highlights (2020)
45.8 Highest score among food retailers
in Colombia (~2x the second highest)
Revenues (R$bn) 18.8 4.4 1.4
Source: Follow
EBITDA margin 8.3% 10.3% 1.4%
Brand
Cash flow conversion1 74% 74% 52%
Sales area (‘000 sqm) 839 92 106
1
Corporate reputation
Market shares
7,800 #1 in corporate reputation among
/10,000 retailers in Colombia. #8 overall
Retail2 31% 43% 2%3
1 1 Source: Merco
Real estate4 32% N/A 12%
Brand portfolio Comprehensive ecosystem
Premium
Mainstream
Low Cost
Diversified with a large footprint Sizeable operations
Dual retail/real estate model
Absolute market leader Absolute market leader
Diversified real estate portfolio
#1 private employer in Colombia Strong cash generation
Notes: 1. Calculated as (EBITDA Pre IFRS 16 -Capex)/EBITDA Pre IFRS 16; 2. Colombia market share from Supersociedades, including discounters, as of 2019. Uruguay market share from IDretail/GDU, Dec, 2020. Argentina market share from Nielsen, Dec, 2020; 20
3. Refers to market share in the country. The market share for the areas Grupo Exito is present in is 14.5%; 4. Market share based on real estate AUM; 5. Includes: Tuya Pay, Paseo, Media business venture, Vehicle Rental business venture, Exito Móvil, among othersComprehensive Ecosystem with Strong Synergies
Leading retail through innovation and integration of BU´s across a comprehensive ecosystem with strong synergies
#1 loyalty coalition in
Colombia with over #1 shopping
105 allied brands mall operator
Absolute market in Colombia
leader, with 28%
retail market share
#3 real estate
player in
Argentina
#1 food retailer,
high margins and
strong cash flow
Brick & Mortar Loyalty Coalition Complementary
generation Businesses & Traffic
Monetization #1 card issuer
in Colombia
Dual Retail / Real
Estate model Launched in
Mar/20 ~200k
digital accounts
Unmatched digital
penetration in the Omni-channel
Omniclient 1.1 M Tx.
Target is to be
region the #1 ally of
money transfer
network in
Including click & Colombia
collect, digital Others
catalogue Alliance to
centralize and
+475K active monetize
735 vendors with lines and electronic
triple digit #4 travel #1 seller of transactions
82% GMV growth in micro insurance
growth in on- agency in
2020 in Colombia 21
line channel Colombia
21Grupo Exito has pioneered innovation in Colombia
Éxito Wow: Innovation in Hypermarkets Carulla FreshMarket: A premium , fresh and sustainable
proposal
11 stores
14 stores
20.7% of total
26.5% of total
banner sales
banner sales
+12.4 p.p. sales +7.1 p.p. sales
growth vs. non- growth vs. non-
converted stores converted stores
The best merge of digital and physical The last generation of technological Shopping experience and exceptional Model performance levered by digital
worlds support and customers’ experience freshness and omni-channel initiatives
Recognized by the British Institute of Grocery Distribution Recognized by the British Institute of Grocery Distribution
as the “Store of the Month” for October 2020 (Exito Wow Laureles) among “16 best supermarkets to visit in 2019”
+30%
Potential to reach 34 stores
+20%
+20%
+15%
Potential to reach 43 stores +15% converted into Carulla
+15%
converted into Exito Wow FreshMarket
and +101 Exito WOW Econo format and +46 Carulla Fresh Market Midi format
Sales Growth EBITDA Growth ROI
Sales Growth EBITDA Growth ROI
22
Year 1 post-conversion metrics considering standard format stores only Year 1 post-conversion metrics considering standard format stores onlyStrong and growing private label portfolio, with cross-synergies among our
businesses in different countries
Food categories Non-Food categories
Taeq Apparel
Positioned as the 3rd most important healthy brand in Colombia Arkitect, Bronzini and People are among the top 10 apparel brands in
Colombia
Frescampo Homegoods
Relevant low-cost brand in the Colombian market Relevant homegoods brand, with international presence
~6 thousand SKUs ~44 thousand SKUs
4Q20 4Q20
~17% Private Label Penetration in Food Products ~36% Private Apparel & Homegoods Penetration
in 2020 in 2020
23There is no other Latin American player with such omnichannel penetration as
Grupo Exito in Colombia
Unmatched omnichannel penetration Exito to continue strengthening the
Omnichannel share of sales (%) omnichannel business in 2021
12.4%
R$2.0bn1 2.7x 1 Increase platform monetization
2020 sales via Omnichannel
omnichannel sales growth2 4.5%
2
Maintain double digit growth and high
penetration into 2021
2019 2020 3 Increase apparel category penetration
R$ 1 billion in food and
R$ 1 billion in non food Continue investing CAPEX in innovation
Positive contribution to the margin of the B&M business Omnichannel highlights (2020) 4 and omnichannel (c. 30% of our total
CAPEX in 2020)
2.8x food / 2.6x non-food
growth in 2020
9% food / 20% non-food
E-commerce Marketplace Digital Catalogue penetration as of 2020
+240% in traffic 735 vendors +3.6% in sales
More than 8.5mm orders (+1.8X)
in 2020
164mm website visits
Last Mile & Delivery Click & Collect in 2020, vs. 86mm in 2019
Notes: Data refers to Colombia. 1. Converted at a BRLCOP average FX rate for 2020 of 716.86;
85% of total orders in 800k+ orders in 2. 2020 vs. 2019
2020 2020 3.1x Grupo Éxito(3)
orders 3. Include .com, marketplace, home delivery, Shop&Go, Click&Collect and digital catalogues
24
70% share on salesKey Takeaways
Solid food retail leadership in Colombia and Uruguay, with robust
operations and profitability
Continued strong growth in omnichannel
Expansion of formats Wow, FreshMarket and Surtimayorista
Pioneer in innovation, including hypermarket, fresh market and real
estate
Robust ecosystem, with clear customer monetization opportunities
25GPA Consolidated GPA Brazil Grupo Éxito
26GPA - Main assets (value reserves)
Top of Mind Brands Other Assets
• GPA paid aprox. • GPA holds 34% of • Lands and buildings
R$ 9.5 billion to Cnova, listed at in Brazil valued at
acquire 96.57% of Euronext: market R$ 1.3 billion, book
Grupo Éxito through value of aprox. R$ 5.3 value
a tender offer. billion for GPA stake (as of Dec 31, 2020)
(as of March 03, 2021)
• Gas station and
Leadership in Market share Drugstores
14% 31%
43%
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