Corporate Presentation July 2017

Transcription

1 Corporate Presentation July 2017 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.

2 Disclaimers 1. Consolidated statements of income as of March 31st of 2016 include the effects of the restatement of the discontinued operation relevant to Via Varejo S.A. and Cnova N.V. for comparison purposes to They also include the effects of the restatement of the results of Companhia Brasileira de Distribuição CBD, arising from the adjustment booked regarding the Cnova N.V investigation and the adjustments from the completion of the Purchase Price Allocation process relevant to the acquisition of control over Companhia Brasileira de Distribuição - CBD and of Libertad S.A., pursuant to IFRS 3 - Business combinations. 2. Consolidated unaudited proforma financial information 2015 was prepared to illustrate the effect that would have occurred if the operation with Companhia Brasileira de Distribuição CBD and Libertad S.A, recorded on August 31 st of 2015 and consolidated since September 1 st of 2015, would have been recorded and consolidated since January 1 st of This information is provided for illustration purposes only seeking to provide a comparable basis with the financial statements as of December 31st of In addition, figures include the effects of the restatement of discontinued operation of Via Varejo S.A., for comparison purposes to Due to these assumptions, proforma financial information does not represent the financial reality of Almacenes Exito and its subsidiaries for the period from January 1 st to December 31 st of Thus, Almacenes Exito S.A.'s management is responsible of validating the sources of information, the definition of the criteria used in the consolidation process and the eliminations made to prepare this proforma financial information. Our auditors Ernst & Young Audit Ltda., in a communication sent on November 29th of 2016, have concluded that, the compiling proforma financial information process has been applied by the Administration in accordance with the International Standard of Assurance Engagements 3420 (ISAE 3420) "Guarantee reports of compiling proforma financial information process", published by the Board of International Auditing Standards. 2

3 Content Latam Integration and Synergy Process.. 5 Key Facts by Country: o Colombia o Brazil.. 20 o Uruguay. 22 o Argentina.. 23 Ownership, Management, Board and Shareholder Structures 24 Corporate Governance & Sustainability. 29 Outlook Appendixes: o Financial Information o Financial Information

4 Grupo Éxito The Omni-Channel Retail Leader in South America Grupo Éxito is one of the largest multinationals in Colombia and a relevant food retailer in Latin America. The Company has clear competitive advantages derived from its strength in bricks and mortar and the value of their brands, supported by the quality of its human resource. Grupo Éxito also leads an e-commerce strategy and diversifies its revenues with a sound set of complementary businesses to enhance its retail offering. In 2016, Consolidated Net Revenues totaled COP$51.6 billion derived from retail sales and its strong portfolio of complementary businesses: credit card, travel, insurance and real estate with shopping malls in Colombia, Brazil and Argentina. The Company operates near to stores: in Colombia with Grupo Éxito; in Brazil with Grupo Pão de Açucar; in Uruguay with Grupo Disco and Grupo Devoto, and in Argentina with Libertad. Grupo Éxito is also the e- commerce leader in Colombia with exito.com and carulla.com. Grupo Éxito s solid omni-channel model and multi-format and multi-brand strategies make it the leader in all modern retail segments. The Company s hypermarkets lead under the Éxito, Extra, Geant and Libertad brands; in premium supermarkets under the Carulla, Pão de Açucar, Disco and Devoto brands; in proximity under the Carulla, Éxito, Devoto and Libertad Express and Minuto Pão de Acucar brands. In discount, the Company leads with Surtimax and Super Inter brands and in Cash and Carry with Assai and Surtimayorista. 4

5 Latam Integration and Synergy Process 5

6 Grupo Éxito: Proven Track Record of Successful Integrations Incorporation of Acquisition of Became the biggest retailer in Colombia with nationwide presence Acquisition of Leadership in premium supermarkets, strong presence in Bogotá and expertise in prepared foods 2007 Alliance with Market share gains in Bogotá and ramp up in sales 2010 Acquisition of International expansion outperformed business plan 2011 Launch of The Viva Brand for shopping centers 2012 Acquisition of Acquisition of control in Acquisition of 100e % in Local expansion International expansion 1949 Format expansion Acquisition of new brands Source: Capital IQ 6

7 Grupo Éxito 2016 Big Steps towards Latam Consolidation Significant Advances of the Integration and Synergy Processes 19 initiatives, run rate 2016 of USD$25 M in recurrent operational gains. Expansion in Key Formats Cash and Carry: Assaí (Bra), Surtimayorista (Col). Proximity: Exito Express (Col), Minuto Pao de Açúcar (Bra) Devoto Express (Uru), Petit Libertad (Arg). Commercial Strength Key Commercial Drivers Latam: 1,2,3 Commercial model, Textile model, Unbeatable prices and Fresh Model. Financial Highlights Consistent holding deleverage plan. Profitability preservation plan. Corporate Governance Achievements Adoption of OECD Corporate Governance Guidelines in Colombia. Sustainability Achievements Inclusion in DJS Index for Emergent Markets. Structure consolidation with focus in the food segment in Brazil to position as the food retailer leader in South America 7

8 2016 Grupo Éxito Consolidated Overview As of Dec 31, 2016 Total sales * (USD MM) 3,665 12, ,960 Recurring EBITDA (USD MM /Margin) % % % % % Stores Local Market share (1) ,562 42% (2) 14.5% (3) 44% 15% N.A. Total Real Estate GLA (SQM) 584, , ,000 1,084,000 * FX rate COP$3.000/ USD (1) Stores in Brazil do not include pharmacies, gas stations and stores from the discontinued business unit of Via Varejo. (2) Source: Nielsen: Market share in modern retail (3) Source: ABRAS (Brazilian Supermarket Association) as of December 31, 2014 for Food Retail only 8

9 Comprehensive Coverage of Customers Brands & Formats covering all segments of the population Colombia Brazil Uruguay Argentina High End Low End 9

10 Key Commercial Drivers Latam Joint Strategies Favoring market share gains in all markets Commercial Model Unbeatable Prices Fresh Products Textile Model Successfully increased sales levels in Brazil. Activity re-named in Colombia. Best prices warranty. Strategy focus in food basket items. Differentiation strategy. Shrinkage improvements increased productivity. Increased sales mix in Brazil and Argentina. The best performing category in Colombia. 10

11 Synergies Snapshot Dynamism in execution: Run rate of USD$25 M in regional benefits in 2016 Dec/15 Redefinition of the Corporate Structure. 15 joint projects to execute. Consulting and initiative identification. USD$5M Synergies by 2015 Mar/16 1 st LatAm encounter in Colombia. May/16 Textile strategy and 1 st Latam encounter in Brazil. 1 st cash and carry store in Colombia. Sep/15 Acquisition of GPA and Libertad Jan/16 Set up of the Integration Office. Opening of the 1 st Fresh Market store in Uruguay. Joint commodity purchasing. Apr/16 Argentinian commercial model implemented in Colombia and Brazil. Launch of the Ally model in Brazil. Sep/16 Launch of Textile model in Argentina USD$25M Synergies by

12 Synergy Process Follow Up as of 1Q17 Joint commodity purchases 3% to 15% Savings at cost level Allies 150 in Brazil Cash & Carry 2,7x Sales / sqm after conversion Commercial Model Consistent implementation allowed market share gains Savings above 30% at cost level Back office Developing a regional model Textile Strategy Unified product sourcing across all 4 countries. Strong sales growth over non-rollout stores bps Shrinkage - 41 bps Exchange of best practices to improve current levels Premium Express formats Synergies run rate Opened in Argentina and Uruguay 2 1 USD$25 M by 2016 USD$50-60 M by 2017E 12

13 Key Facts by Country 13

14 Multi-Brand & Multi-Format Formats & Channels in Colombia 563 stores Supermarkets & Convenience stores 99 stores E-commerce A pleasure for everyday At your service Best in Fresh & Imported Premium products Top Experience Hypermarkets, Supermarkets & Convenience stores Value for Money Customer Service Food and non-food 261 stores Food & non-food products Over 11 million visits YTD17 Click & Collect in 300 stores Mobile App: 22% of on- line sales Market Place: 18% of exito.com sales Sales growth of 21% including market place Where buying costs less Soft Discount & Cash & carry stores High % of Private Label 203 stores Food products Premium & imported Market place for non-food Over 0.7 million visits YTD17 Sales growth of 73% including market place Allies 1,336 Commercial alliance with independent stores Figures as of March31,

15 Strategy to Lead the Discount Market A strong response to the new market trend in Colombia Positioning Surtimax and Super Inter brands within the discount market. Launch of the Cash and Carry format under the Surtimayorista brand in Driving the fresh model into the Discount format. Development of Allies Business Model in Colombia Allies Business Model in Colombia Conquering the traditional channel Market Supply Chain Network Social Responsibility Potential Market Covering the low-income market Assortment optimization Service and Quality Promise Growing Together Neighborhood stores account for approximately 53% of total market To conquer new markets before competitors do 1,300 SKUs vs. 5,000 on current Surtimax stores Competitive prices, private label portfolio Exito as an important contributor of economic growth (training and efficiency to each Aliado) Allies benefits Over 1,300 Aliados. Superior service and quality. Competitive prices. Surtimax & Super Inter brand support. Access to credit. Participation on sales events. Figures as of Mar 31,

16 Complementary Businesses A business model based on profitable alliances to monetize the traffic Financial Retail Insurance Over 2.4 million cards issued Partner agreement with Bancolombia New Mastercard franchised card 24% sales growth Over 1 million clients JV with Grupo Sura Travel 2nd travel agency in Colombia Over 200 thousand clients Sales growth of 16% Mobile Over 1.2 million users Mobile Virtual Operator Non-banking Correspondent Local & International Money Transfers 41% growth in international transfers. Figures as of Dec 31,

17 Grupo Éxito s Real Estate Business A track record of over 10 years in the development and operation of shopping malls in Colombia. Viva Malls will enable this platform to continue to grow at an accelerated pace Major Transformation of the Business 2012 Viva Laureles 2014 Viva Villavicencio 2016 Viva Malls Creation FIC Investment 2018 Viva Tunja Viva Envigado 2006 Puerta del Norte 2008 Fontibón 2010 Buenaventura Villavicencio Caucasia Barrancabermeja 2013 San Pedro Expansion 2015 Viva Wajiira 2016 Viva Barranquilla Éxito will continue to propose new developments to Viva Malls 2005 Neiva 2007 Sincelejo Viva Brand is created Viva Sincelejo Expansion Viva Palmas Viva La Ceja Source: Éxito. Real Estate First Initiatives Development of a Real Estate Business and Development of Viva Brand Viva Malls Growth 17

18 Viva Malls Viva Malls, Colombia s largest commercial real estate vehicle specialized in the development and operation of shopping centers. Investment of more than COP$770,000 1 million by FIC in Viva Malls. Comprised by 14 assets portfolio and a total GLA of over 434,000 sqm to 2018, valued in COP$1.6 bn 1, with a stabilized capitalization rate between 8.7% and 8.8%. Portfolio comprised by: Shopping Malls 45%, Hypermarkets and commercial galleries 26%; projects under development 29%. Inclusive Development Scheme in large cities (Envigado Barranquilla) and midsize cities (Riohacha, Tunja) It will allow value extraction of retail assets and maximize shareholder s value. Viva Envigado Render of Viva Tunja (1) Under Spanish numbering standards: COP 1.0bn = 1.000,000,000,000 18

19 Loyalty Program Puntos Colombia Launch of Puntos Colombia, the new loyalty program in alliance with Grupo Bancolombia. Puntos Colombia, the biggest loyalty player in the country by number of customers. 50% stake each party, initial equity investment by Grupo Éxito of COP$9.000M. Puntos Colombia, independent company focused on offering new benefits to its customers by creating a large ecosystem of points issuance and redemption. Potential lever of value creation and high potential for intangible asset s monetization from New commercial strategies for all allies. Customer s loyalty increase. Better customers behavior understanding Joint experience and innovation 1.2Bn Cop loyalty industry potential market 19

20 Formats & Brands in Brazil 888 stores* Formats provide high-quality products for households throughout the country 323 stores Hyper & Super Targeting Brazilian Families 274 stores Proximity Mini Mercado Extra & Minuto Pao de Acucar 106 stores Multi-business Strategy Low Operating Costs & Competitive Prices 185 stores Premium Format Supermarket & Proximity stores *Figures as of Mar 31,2017. excludes drugstores and gas stations and the discontinued Via Varejo operation Neighborhood Mall First in Brazilian retail market to operate with this real estate proposal 20

21 GPA, key facts Price competitiveness to maintain market share rationalizing operational costs Strategy Focus Assaí Renovations, Conversions Commercial strategy Recovery of Extra brand sales driven by: 1,2,3 saving steps, Hyper-fair and Lowest price campaigns. Investment in prices to recover market. Maintenance of profitability at Pao de Acucar. Strong organic expansion Main brand for GPA food sales Strong double digit SSS growth. Disciplined cost control. Structure Consolidation Announced divestment process of Via Varejo: Strategic Alternative to Focus in Food Retail Clear Strategic and Financial Rationale o o o o Simplification of GPA & Exito Corporate Structure. Company s focus in improving EBITDA margin & ROI Food Business. Profit fully from Brazil recovery in one concentrated food battlefield. Optimize investment capabilities for expansion within the food segment. 21

22 Formats & Brands in Uruguay Solid growth in a country with high purchase power 80 stores 29 stores Supermarkets 49 stores 2 stores Supermarkets & Proximity stores Hypermarkets Positive outcome driven by Devoto & Géant performance. Proximity under 24 Devoto Express stores. Market share from 42% to 44% in the last 5 years. Synergies with the development of the loyalty program. Redesigned of devoto.com and launch of geant.com. Potential - Real Estate projects Figures as of Mar 31,

23 Formats & Brands in Argentina Third real estate player in Argentina 27 stores 15 stores Mini 13 stores Hypermarkets Mini-markets and Premium Express format Libertad stores: Presence in 9 states Market share increase of 20 basis points in 2015 Total sales growing 29.2% derived from improved HM proposition. 3 rd real estate player, 160k sqm of GLA,.+50k sqm of GLA in 3 years. Figures as of Mar 31, 2017 Commercial galleries 23

24 Ownership, Management, Board and Shareholder Structures 24

25 Ownership Structure International ownership structure consolidates best in class LATAM retail platform 55.3% 18.72% / 50% 18.72% / 50% 100% 100% 62.5%* % Economic rights % Voting rights * Grupo Exito consolidates Grupo Disco since January 1 st, 2015 Figures as of Dec 31,

26 Management Structure Colombia Brazil Uruguay CEO Carlos Mario Giraldo CEO GPA Ronaldo Iabrudi General Manager Luis E. Cardoso President Carlos Mario Diez CEO Multivarejo Luis Moreno Devoto Guillermo Destefanis CFO Manfred Gartz CFO & Corporate Services Christophe Hidalgo Int Business VP José Gabriel Loaiza Assaí Belmiro Gomes Via Varejo Peter Estermann Argentina Director General Manager Tijeras Jean Jean Christophe Tijeras Real Estate VP Juan Lucas Vega Asistente GPA Director Malls Maria Tricárico Luiz Henrique Costa Gerente Recursos Humanos Peralta Daniel Cnova Brasil Flávio Dias Director Operaciones Vallcaneras Daniel Director Comercial Ricci Renzo Director Administrativo Financiero Bonnaud Nicolás Information as of Dec 31,

27 Colombia Luis Fernando Alarcón Independent Daniel Cortés McAllister Independent Ana María Ibáñez Independent Felipe Ayerbe Muñoz Independent Yves Desjacques Philippe Alarcon Bernard Petit Hervé Daudin Mathieu Santon Current Board Structure Brazil Jean Charles Naouri - President Arnaud Strasser - Vice president Eleazar de Carvalho Filho -Independent Luis Augusto de Castro Neves- Independent Maria Helena S F.Santana- Independent Luiz Aranha Correa do Lago- Independent Yves Desjacques Ronaldo Iabrudi dos Santos Pereira Carlos Mario Giraldo Moreno (Éxito) José Gabriel Loaiza Herrera (Éxito) Carlos Mario Diez Gomez (Éxito) Expansion Committee Appointment, Remuneration and Corporate Governance Committee Investment Committee Risk & Audit Committee Sustainability Committee To define real estate investment projects and strategies To define recruitment and remuneration policies. To verify corporate governance rules compliance To define cash investment policies To control adequacy of accounting and financial procedures To define sustainability strategy and work plan Further information available on Information as of Dec 31,

28 Grupo Éxito Shareholder Structure 28

29 Corporate Governance and Sustainability 29

30 Corporate Governance Standards Exito is committed to continuously improve and advance on Corporate Governance Standards Adoption of OECD Corporate Governance Standards in Colombia Amendment of existing corporate governance documents and policies - rules for shareholders meetings, conflict of interest regulation, control system, among others. New rules regarding approval of related party transactions, privilege information measurements and disclosure of information. Composition of the Board and Supporting Committees Board of Directors elected on March 30, Risk and Audit Committee integrated only by Independent Members. An Independent member is the Chairman of the Board Chairman of Supporting Committees are independent Members. Conflict of Interest and RPT Management Conflict of Interests at the Board Level to be solved by non-conflicted members. Related Party Transactions to be evaluated by the Risk and Audit Committee. Shareholders approval required for transactions above 10 MUSD. Further information available on 30

31 Related Party Transactions & Conflict of Interest Management Related Party Transactions Approval Procedure General Counsel as responsible for mapping related parties and building an RPT data base. The leader of a negotiation process involving a related party should inform the General Counsel about possible RPT. Risk and Audit Committee responsible for verifying compliance with corporate governance requirements specially arm s length principle compliance, and approving RPT. Risk and Audit Committee should submit an out of ordinary course of business RPT which amount is 10 MUSD to the Board s approval. Conflict of Interest Management Procedure Conflict of Interest Committee in charge of evaluating and solving conflict of interest situations, as well as deciding on penalties. Conflict of Interest Committee integrated by: Board s Corporate Governance Committee, when conflicted person is a Management member. Non-conflicted Board members, when conflicted person is a Board member. HR VP, General Counsel and Internal Auditor, when conflicted person is an employee. Reporting channels, such as an and a HR software, were implemented to motivate reporting on conflict of interest situations. 31

32 G e n C e r o C o m m u n i c a t i o n & a w a r e n e s s. A l l i a n c e s & R e s o u r c e s. G e n e r a t i o n a n d d i s s e m i n a t i o n o f k n o w l e d g e. I m p a c t o n p u b l i c p o l i c y. P r o m o t i n g S u s t a i n a b l e T r a d e D e v e l o p p a r t n e r s & s u p p l i e r s. D i r e c t l o c a l t r a d e ( f r e s h ). S u s t a i n a b l e a u d i t s. M i p l a n e t a S u s t a i n a b l e c o n s t r u c t i o n. M e a s u r e m e n t & m i t i g a t i o n o f t h e c a r b o n f o o t p r i n t. R e s o u r c e e f f i c i e n c y. S o l i d w a s t e m a n a g e m e n t & r e c y c l i n g. C o n s u m e r e d u c a t i o n. R e d u c t i o n o f m a t e r i a l. E n c o u r a g i n g a H e a l t h y L i f e s t y l e P r o m o t e s p o r t & p h y s i c a l a c t i v i t y. A w a r e n e s s : c u s t o m e r s, s u p p l i e r s & e m p l o y e e s. M a r k e t i n g o f h e a l t h y a l t e r n a t i v e s. Sustainable Strategy T h e s u c c e s s o f G r u p o É x i t o r e l i e s o n i t s p e o p l e E n c o u r a g e s o c i a l d i a l o g u e. D e v e l o p o u r p e o p l e i n b e i n g a n d d o i n g. R e c o g n i z e p e r f o r m a n c e & p o t e n t i a t e t a l e n t. A t t r a c t i v e, d i v e r s e & i n c l u s i v e. F o s t e r a g o o d p l a c e t o w o r k. 32

33 2017 Outlook 33

34 2017 Outlook Latam Platform Gradual decrease in interest rates (Col, Bra) to lower financial expenses and drive consumption levels. Mid-term economic recovery expected in Colombia, Brazil and Argentina. Focus on cost and expense control activities. Expansion focus on cash and carry (Bra, Col). High potential from store conversions and premium store renovations. Run rate benefits from synergies exceeding USD $50 M. oa renewed loyalty program in Brazil. obest practices in supply chain and shrinkage between Colombia and Brazil. oongoing integration process between countries. Colombia Gradual recovery in consumption to be seen from 2H17. Focus on cost and expense control activities and in profitable expansion. Retail expansion of stores (+35k sqm of sales area), including at least 2 Surtimayorista stores (cash and carry). Strengthening of Aliados and piloting of franchises. Real estate expansion of Viva Malls (+120k sqm of GLA by 2018). Consistency in profitable activities to face competition (cash and carry, unbeatable, private label, fresh product model and allies). Puntos Colombia, to be launched by Brazil Focus on cost and expense control. Assaí: 6 to 8 new stores and 10 to 15 conversions from Extra. Pao de Acucar focus on store renovation and customer experience. Structure consolidation with focus in the food segment with the ongoing divestment process of Via Varejo. Uruguay Increasing market share and strengthening of the convenience format with 10 to 15 Devoto Express store openings. Focus in maintaining solid margin levels. Argentina Expanding the real estate business by creating near to 35k sqm of GLA in the next 2/3 years 34

35 Share Valuation Share Valuation: Strong increase in valuation of Via Varejo and GPA still not fully reflected in Éxito s share price. Stock Market Evolution Grupo Éxito GPA Via Varejo Closing Price as of May 15,2017 Local Currency % Var from Jan 1st, , % % % Stock Market Evolution Grupo Éxito GPA Via Varejo Closing Price as of May 15,2017 Local Currency % Var from Jan 1st, , % % % 35

36 Appendixes Financial Information 2017 YTD 36

37 1Q17 Consolidated Financial Results Consolidated financial results strongly benefited by Brazil and productivity efforts in all countries 1Q17 1Q16 In COP M In COP M 1Q17/16 Net Revenues 13,525,913 11,980, % Gross Profit 3,237,947 2,828, % Gross Margin 23.9% 23.6% SG&A Expenses -2,755,978-2,485, % SG&A/Net Revenues -20.4% -20.7% Recurring Operating Income 481, , % Recurring Operating margin 3.6% 2.9% Operating Income (Ebit) 420, , % Operating margin 3.1% 2.1% Net Income attributable to Grupo Éxito -7, N/A Net margin -0.1% 0.0% Recurring EBITDA 730, , % Recurring EBITDA margin 5.4% 4.5% EBITDA 669, , % EBITDA margin 4.9% 3.8% Notes: Consolidated statements of income as of March 31st of 2016 include the effects of the restatement of the discontinued operation relevant to Via Varejo S.A. and Cnova N.V. for comparison purposes to They also include the effects of the restatement of the results of Companhia Brasileira de Distribuição CBD, arising from the adjustment booked regarding the Cnova N.V investigation and the adjustments from the completion of the Purchase Price Allocation process relevant to the acquisition of control over Companhia Brasileira de Distribuição - CBD and of Libertad S.A., pursuant to IFRS 3 - Business combinations. 37

38 1Q17 Group Share Net Result Net result affected mainly by financial expenses and tax provisions The Net Result in 1Q17 versus 1Q16 derived from: o o The positive quarterly variations of Recurring Operating Income of Brazil of COP$159,091 M and the consolidated non-recurring income of COP$ M, offset mainly by, The negative quarterly variations of Recurring Operating Income of Colombia, Uruguay and Argentina of COP ($20.193) M, the consolidated net financial expense of COP ($ M) and the consolidated tax provisions of COP ($58.983) M. 38

39 1Q17 Net Debt & Cash at Holding (1) Level Results show QoQ deleveraging and cash improvements despite higher repo rates and the challenging macro environment +8.9% -8.2% -6.3% NFD at holding level: o COP$3.94 Bn as of march 31st, 2017 (-8.2% vs 1Q16 and including $450 M in USD). o A long term amortization payment of COP $ M made in Feb; one more scheduled for Aug. o Interest rates below IBR3M + 3.5% in COP and LIBOR3M % in USD. o Repo rate was 50 bps higher in 1Q17 (7.0%) versus 1Q16 (6.5%). Cash at holding level: o COP$ M as of march 31st, 2017 (+8.9% vs in 1Q16), higher by COP$ M derived mainly from WK improvements related to inventory optimization. Note: (1) Holding: Almacenes Exito Results without Colombian or international subsidiaries. IBR 3M (Indicador Bancario de Referencia) Market reference rate : 6.39%, Libor 3M %. 39

40 1Q17 Debt by Country and Maturity Net debt by country March 31,2017 (In millions of COP) Colombia (1) Uruguay Brazil Argentina Consolidated Short-term debt 1,160, ,227 2,144,232 18,142 3,687,778 Long-term debt 3,382, ,336, ,718,903 Total gross debt (2) 4,542, ,227 4,481,131 18,142 9,406,680 Cash and cash equivalents 678, ,903 1,556,712 11,890 2,373,974 Net debt 3,863, ,324 2,924,420 6,252 7,032,706 (1) Note: Colombia includes results of Almacenes Exito S.A. and its subsidiaries in Colombia. (2) Debt without contingent warranties and letters of credit (3) Debt composed of the mains loans, without accounting adjustments. Holding Gross debt by maturity March 31, 2017 Nominal Nature of (In Millions of COP) amount interest rate Maturity Date March 31, 2017 Long term 1,850,000 Floating August ,655,010 Mid term COP 838,000 Floating December ,000 Mid term USD (4) 1,296,108 Floating December ,296,108 Revolving credit facility - Syndicated 500,000 Floating August ,000 Revolving credit facility - Bilateral 100,000 Floating August ,000 Total gross debt 4,584,108 4,389,118 (4) The loan in USD was converted to COP using the Central Bank's closing exchange rate as of march 31st, 2017 (2,880.24). 40

41 1Q17 P&L and Capex by Country Colombia Brazil Uruguay Argentina Consolidated In COP M 1Q17 1Q17 1Q17 1Q17 1Q17 Net Revenues 2,696,142 9,809, , ,209 13,525,913 Gross Profit 684,233 2,194, , ,626 3,237,947 % net revenues 25.4% 22.4% 34.6% 36.4% 23.9% SG&A Expenses -534,048-1,692, , ,465-2,507,032 % net revenues -19.8% -17.3% -24.6% -33.2% -18.5% Depreciation and amortization -61, ,675-6,114-3, ,946 Total SG&A -595,297-1,869, , ,373-2,755,978 % net revenues -22.1% -19.1% -25.5% -34.3% -20.4% Recurring Operating Income 88, ,991 60,789 7, ,969 % net revenues 3.3% 3.3% 9.0% 2.1% 3.6% Non Recurring Income and Expenses -36,596-25, ,596 Operating Income (EBIT) 52, ,889 60,779 7, ,373 % net revenues 1.9% 3.1% 9.0% 2.1% 3.1% Recurring EBITDA 150, ,666 66,903 11, ,915 % net revenues 5.6% 5.1% 9.9% 3.2% 5.4% Non - Recurring EBITDA 113, ,564 66,893 11, ,319 % net revenues 4.2% 4.9% 9.9% 3.2% 4.9% Net financial income -111, ,313 3,298-2, ,056 CAPEX (In million) In COP 184, ,893 18,954 9, ,095 In Local Currency 184, Note: Consolidated figures include eliminations and adjustments. 41

42 1Q17 SOTP Analysis (Millions of COP) Net revenues LTM (1) Recurring EBITDA LTM Recurring Operating Inc LTM Net Debt (Last quarter) (2) Éxito Stake Market Value of the stake (4) Colombia 11,358, , ,999-3,863, % Brazil 37,979,600 2,010,812 1,350,753-2,924, % 2,752,613 Uruguay 2,438, , , , %-100% (3) Argentina 1,422,807 65,341 51,061-6, % Total 53,198,627 3,097,408 2,161,038-7,032,706 (1) Do not includes Intercompany eliminations (2) Gross Debt (Without contingent warranties and letters of credit) - Cash (3) Éxito Owns 100% of Devoto and 62.5% of Disco (4) Market Capitalization of GPA at 31/03/

43 1Q17 Consolidated Balance Sheet 43

44 1Q17 Holding (1) P&L 1Q17 1Q16 In COP M In COP M 1Q17/16 Net Revenues 2,649,650 2,716, % Gross Profit 644, , % Gross Margin 24.3% 23.4% SG&A Expenses -572, , % SG&A/Net Revenues -21.6% -20.2% Recurring Operating Income 72,072 87, % Recurring Operating margin 2.7% 3.2% Operating Income (Ebit) 37,546 27, % Operating margin 1.4% 1.0% Recurring EBITDA 125, , % Recurring EBITDA margin 4.7% 5.2% EBITDA 91,106 81, % EBITDA margin 3.4% 3.0% Performance reflected retail sales contraction and macro winds that offset productivity efforts Net Revenues decreased from a weak sales performance affected by the macro environment and lower revenues from the credit card business. Gross Margin gains derived from improved productivity mainly from lower shrinkage levels. SG&A expenses grew below inflation reflected mainly higher occupancy costs related to the increase in leases partially offset by a focus in operational efficiency. Recurring Ebitda margin affected by the negative performance of Net Revenues and higher expenditure levels that offset improvements at gross levels. Note: (1) Holding: Almacenes Exito Results without Colombian subsidiaries. 44

45 1Q17 Holding (1) Balance Sheet Note: (1) Holding: Almacenes Exito Results without Colombian subsidiaries. 45

46 1Q17 Conclusions LatAm Strong quarterly consolidated results benefitted from GPA recovery. Focus and clear advances on cost and expense control. Synergy plan on track captured USD$25M in 1Q17 (same level attained in FY 2016). Colombia Resilient operational performance despite the contracted retail level. Grupo Éxito s performance over performed the retail industry. Brazil Positive outcome from strategies defined jointly with Grupo Éxito. Innovative commercial activities drove traffic, volumes and market share. Confirmation of Extra hyper recovery and high potential from Assaí s conversion. Clear SGA reductions from productivity efforts. Uruguay Continued posting solid margin levels and ongoing convenience expansion. Argentina The real estate business supporting the Company s profitability and advancing to +35k sqm by

47 Appendixes Financial Information

48 Consolidated Financial Results 2016 Financial information proforma allowing year-over-year base comparable Consolidated Income Statement FY16 FY15 FY15 Proforma 1 In COP M In COP M FY16/15 In COP M FY16/15 Proforma Net Revenue 51,639,433 24,045, % 45,104, % Gross Profit 12,539,878 6,258, % 11,426, % % of Net Revenues 24.3% 26.0% 25.3% Recurring Operating Income (ROI) 2,022,139 1,417, % 2,233, % % of Net Revenues 3.9% 5.9% 5.0% Operating Income (EBIT) 1,578,271 1,350, % 2,063, % % of Net Revenues 3.1% 5.6% 4.6% EBT 380,270 1,268, % 1,326, % % of Net Revenues 0.7% 5.3% 2.9% Income Tax -167, , % -485, % % of Net Revenues -0.3% -1.6% -1.1% Net Income Continued Op. 212, , % 841, % % of Net Revenues 0.4% 3.7% 1.9% Controlling (Grupo Éxito) 100,526 Minority Intrest 111,930 Net Income of discontinued operations -834, , % -501, % % of Net Revenues -1.6% -1.1% -1.1% Controlling (Grupo Éxito) -56,998 Minority Intrest -777,853 Net Income -622, , ,298 % of Net Revenues -1.2% 2.5% 0.8% Non-controlling interests -665,923 31, % 44, % Net income attributable to Grupo Éxito 43, , % 295, % Notes: For proforma information please refer to disclaimer 2 on slide # figures restated to reflect the adjustments related to the outcome of the Price Purchase Allocation process for the acquisition of Companhia Brasileira de Distribuição - CBD and Libertad S.A., in accordance with NIIF 3 Business combination From Sales to Operating income all is referring to Continued Operations. Net Income attributable to Grupo Éxito include both continued and discontinued operations. 48

49 Debt at Holding Level 2016 Éxito reached its target Net Debt/adjusted EBITDA (1) ratio of 3.1x in 2016 as of Dec 2016 (from 3.8x as of Dec 2015) Holding net financial debt of COP$2.99 Bn (including $450 M in USD) as of dec 31 st, This represents an improvement of COP$ M vs Interest rates below IBR3M + 3.5% in COP and LIBOR3M % in USD. A long term amortization payment of COP $ M made in August 2016; two more scheduled for 2017 (Feb and Aug). Initial deleverage plan of USD$150 M finally released more than USD$200 M mainly from: Inventories decreased by 5 days Productivity excellence at store and DC level. Implementation of VMI strategies in non-food. In-store assortment optimization. Optimized receivables collection Higher frequency of invoicing (1) Adjusted EBITDA: EBITDA holding + Dividends received from holding subsidiaries. Note: IBR 3M (Indicador Bancario de Referencia) Market reference rate : 6.92%, Libor 3M %. 49

50 2016 Holding Debt by Country and Maturity Net debt breakdown by country Figures in M COP December 31, 2016 (millions of COP) Colombia Uruguay Brazil Argentina Consolidated Short-term debt 567, ,734 2,824,100-3,768,666 Long-term debt 3,499,454-2,690,584-6,190,038 Total gross debt (1) 4,067, ,734 5,514,684-9,958,704 Cash and cash equivalents 1,175, ,145 4,724,329 86,510 6,117,844 Net debt 2,891, , ,355-86,510 3,840,860 (1) Debt without contingent warranties and letters of credit Holding Gross Debt breakdown by currency USD 34% Colombian peso 66% Note: Gross Debt composed of the mains loans, without accounting adjustments Gross debt breakdown by maturity and by interest rate in Colombia 31 December 2016, (millions of COP) Nominal Nature of amount interest rate Issuance date Maturity date 31-dec-16 Long term 1,850,000 Variable 21/08/ /08/2025 1,752,505 Mid tem COP 838,000 Variable 21/12/ /12/ ,000 Mid tem USD (3) 1,350,320 Variable 21/12/ /12/2018 1,350,320 Total gross debt 4,038,320 3,940,825 (3) The loan in USD was converted to COP using the Central Bank's closing exchange rate as of december 31st, 2016 (3,000.71). 50

51 2016 P&L and Capex by Country Colombia Brazil Uruguay Argentina Consolidated In COP M FY 2016 FY 2016 FY 2016 FY 2016 FY 2016 Net Revenues 11,417,886 36,408,941 2,402,427 1,425,367 51,639,433 Gross Profit 2,835,933 8,358, , ,636 12,539,878 % net revenues 24.8% 23.0% 34.7% 36.2% 24.3% SG&A Expenses -2,003,183-6,540, , ,797-9,631,547 % net revenues -17.5% -18.0% -26.8% -31.3% -18.7% Depreciation and amortization -237, ,672-7,782-14, ,192 Total SG&A -2,240,838-7,167, , ,880-10,517,739 % net revenues -19.6% -19.7% -27.1% -32.3% -20.4% Recurring Operating Income 595,095 1,191, ,627 54,756 2,022,139 % net revenues 5.2% 3.3% 7.5% 3.8% 3.9% Non Recurring Income and Expenses -50, ,130-23,198-5, ,870 Operating Income (EBIT) 544, , ,429 49,735 1,578,271 % net revenues 4.8% 2.3% 6.6% 3.5% 3.1% Recurring EBITDA 832,750 1,818, ,409 68,839 2,908,331 % net revenues 7.3% 5.0% 7.8% 4.8% 5.6% Non - Recurring EBITDA 782,230 1,453, ,211 63,818 2,464,463 % net revenues 6.9% 4.0% 6.9% 4.5% 4.8% Net financial income -458, ,549 7,899-19,039-1,261,753 CAPEX In COP 563,523 1,355,443 88,128 40,895 2,047,989 In Local Currency 563,523 1, Note: Consolidated figures include eliminations and adjustments. 51

52 Proforma Statements 2015 Consolidated Income Statement 4Q16 4Q15 In COP M In COP M 4Q16/15 In COP M 4Q15 Proforma 1 FY16 FY15 4Q16/15 Proforma FY15 Proforma 1 In COP M In COP M FY16/15 In COP M FY16/15 Proforma Sales 14,642,041 12,351, % 12,379, % 50,867,511 23,598, % 44,546, % Other Revenue 305, , % 163, % 771, , % 558, % Net Revenue 14,947,487 12,517, % 12,543, % 51,639,433 24,045, % 45,104, % Cost of Sales -11,296,021-9,232, % -9,244, % -39,099,555-17,787, % -33,677, % % of Net Revenues -75.6% -74% -73.7% -75.7% -74% -74.7% Gross Profit 3,651,466 3,285, % 3,298, % 12,539,878 6,258, % 11,426, % % of Net Revenues 24.4% 26% 26.3% 24.3% 26% 25.3% SG&A -2,616,281-2,213, % -2,214, % -9,631,547-4,403, % -8,384, % % of Net Revenues -17.5% -18% -17.7% -18.7% -18% -18.6% Depreciation and Amortization -237, , % -209, % -886, , % -809, % % of Net Revenues -1.6% -2% -1.7% -1.7% -2% -1.8% Total SG&A -2,854,170-2,423, % -2,423, % -10,517,739-4,840, % -9,193, % % of Net Revenues -19.1% -19% -19.3% -20.4% -20% -20.4% Recurring Operating Income (ROI) 797, , % 874, % 2,022,139 1,417, % 2,233, % % of Net Revenues 5.3% 7% 7.0% 3.9% 6% 5.0% Non - Recurring income and expenses -192,766-46, % -48, % -443,870-67, % -170, % % of Net Revenues -1.3% 0% -0.4% -0.9% 0% -0.4% Operating Income (EBIT) 604, , % 826, % 1,578,271 1,350, % 2,063, % % of Net Revenues 4.0% 7% 6.6% 3.1% 6% 4.6% Net Financial Income -351, , % -299, % -1,261,753-92, % -803, % % of Net Revenues -2.4% -2% -2.4% -2.4% 0% -1.8% Income from associates & joint ventures 13,576 15, % 15, % 63,752 9, % 66, % % of Net Revenues 0.1% 0% 0.1% 0.1% 0% 0.1% EBT 266, , % 542, % 380,270 1,268, % 1,326, % % of Net Revenues 1.8% 5% 4.3% 0.7% 5% 2.9% Income Tax -24, , % -178, % -167, , % -485, % % of Net Revenues -0.2% -1% -1.4% -0.3% -2% -1.1% Net Income 241, , % 363, % 212, , % 841, % % of Net Revenues 1.6% 3% 2.9% 0.4% 4% 1.9% Net Income of discontinued operations -30, , % -323, % -834, , % -501, % % of Net Revenues -0.2% -2% -2.6% -1.6% -1% -1.1% Non-controlling interests 19,872-77, % -83, % -665,923 31, % 44, % % of Net Revenues 0.1% -1% -0.7% -1.3% 0% 0.1% Net income attributable to Grupo Éxito 191, , % 124, % 43, , % 295, % % of Net Revenues 1.3% 2% 1.0% 0.1% 2% 0.7% Recurring EBITDA 1,035,185 1,072, % 1,083, % 2,908,331 1,854, % 3,042, % % of Net Revenues 6.9% 9% 8.6% 5.6% 8% 6.7% EBITDA 842,419 1,025, % 1,035, % 2,464,463 1,787, % 2,872, % % of Net Revenues 5.6% 8% 8.3% 4.8% 7% 6.4% Note: For proforma information please refer to disclaimer 2 on slide #2. 52

53 Operational Performance - Proforma Consolidated Income Statement FY 2015 Colombia Brasil Proforma 1 Uruguay Argentina Proforma 1 Consolidado Profroma In COP M In COP M In COP M In COP M In COP M Sales 10,285,199 30,634,814 2,122,911 1,511,664 44,546,300 Other Revenue 333,446 89,170 40,099 95, ,371 Net Revenue 10,618,645 30,723,984 2,163,010 1,607,320 45,104,671 Cost of Sales -8,010,686-23,228,459-1,415,706-1,028,468-33,677,723 Gross Profit 2,607,959 7,495, , ,852 11,426,948 SG&A -1,801,056-5,514, , ,529-8,384,057 Depreciation and Amortization -211, ,015-38,793-17, ,356 Total SG&A -2,012,300-6,056, , ,833-9,193,413 Recurring Operating Income (ROI) 595,659 1,438, ,507 78,019 2,233,535 Non - Recurring income and expenses -22, ,300-13,450-17, ,032 Operating Income (EBIT) 572,929 1,322, ,057 60,467 2,063,503 Recurring EBITDA 806,903 1,980, ,300 95,323 3,042,891 EBITDA 784,173 1,864, ,850 77,771 2,872,859 Note: Colombia s result includes the financial outcome of Almacenes Exito S.A. and its subsidiaries in Colombia. For proforma information please refer to disclaimer 2 on slide #2. 53

54 2016 SOTP Analysis (Millions of COP) LTM net revenues LTM recurring Net debt (Last Market Value of (1) LTM ROI EBITDA quarter) (2) Éxito stake the Stake (4) Colombia 11,417, , ,095-2,891, % Brazil 36,408,941 1,818,334 1,191, , % 2,658,328 Uruguay 2,402, , , , %-100% (3) Argentina 1,425,367 68,839 54,756 86, % Total 51,654,621 2,908,332 2,022,140-3,840,860 Note: (1) Do not includes Intercompany eliminations (2) Net Debt= Gross Debt (Without contingent warranties and letters of credit) Cash (3) Éxito Owns 100% of Devoto and 62.5% of Disco. (4) Market Capitalization of GPA as at 24/02/

55 2016 Consolidated Balance Sheet Consolidated Balance Sheet Dec 2016 Dec 2015 Var % Consolidated Balance Sheet Dec 2016 Dec 2015 Var % ASSETS 62,497,566 57,806, % LIABILITIES 43,386,357 39,630, % Current Assets 32,644,699 23,977, % Current Liabilities 30,856,886 25,071, % Cash & Cash Equivalents 6,117,844 10,068, % Trade Payables 11,536,968 18,599, % Inventories 5,778,173 8,685, % Borrowing-Short Term 2,963,111 3,922, % Accounts receivable 1,168,174 3,251, % Other financial liabilities 805, , % Assets for taxes 896,967 1,081, % Non-current liabilities held for sale 14,592,207 - Non-current assets held for sale 18,429,787 22, % Liabillities for taxes 320, , % Others 253, , % Others 638,641 1,346, % Non-current Assets 29,852,867 33,828, % Non-current Liabilities 12,529,471 14,558, % Goodwill 5,616,136 5,775, % Trade Payables 42,357 30, % Other intangible assets 5,663,422 9,657, % Borrowing-Long Term 4,354,879 6,707, % Property, plant and equipment 12,465,698 12,469, % Other provisions 2,706,629 2,638, % Investment Properties 1,634,551 1,126, % Deferred tax liabilities 2,965,586 2,903, % Investments in associates and JVs 1,068, , % Liabillities for taxes 502, , % Deferred tax assets 1,456, , % Others 1,957,568 1,823, % Assets for taxes 581,947 1,963, % Shareholder s Equity 19,111,209 18,176, % Others 1,366,160 2,132, % Non-controlling interests 11,389,522 10,658, % Shareholder s Equity 7,721,687 7,517, % (1) For comparison purposes to 2016, these financial statements include certain minor reclassifications to accounts payable; other provisions; other financial liabilities; other non-financial liabilities; inventories; property, plant and equipment; investment properties, and tax liabilities. (2) Amounts restated to reflect the effect of the adjustments from the completion of the Purchase Price Allocation process relevant to the acquisition of control of Companhia Brasileira de Distribuição - CBD and of Libertad S.A., pursuant to IFRS 3 - Business combinations 55

56 Note on Forward-Looking Statements This document contains certain forward-looking statements. This information is not historical data and should not be interpreted as guarantees of the future occurrence of such facts and data. These statements are based on data, assumptions and estimates that the Group believes are reasonable. The Group operates in a competitive and rapidly changing environment. It is therefore not in a position to predict all of the risks, uncertainties or other factors that may affect its business, their potential impact on its business, or the extent to which the occurrence of a risk or a combination of risks could have results that are significantly different from those included in any forward-looking statement. The forward-looking statements contained in this document are made only as of the date hereof. Except as required by any applicable law, rules or regulations, the Group expressly disclaims any obligation or undertaking to publicly release any updates of any forward looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which any forwardlooking statement contained in this press release is based.

57 Tel 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 solvency of the issuer.