Transaction Involving Conversion of Extra Hiper Stores
OCTOBER, 2021
DISCLAIMER
This presentation ("Presentation") was prepared by Sendas Distribuidora S.A. ("Company") and contains operational and financial information prepared by the Company and publicly available information to assist and contextualize the analysis of a potential transfer of certain commercial establishments to the Company ("Analysis"). The transaction remains subject to certain conditions precedent, including the negotiation of definitive agreements and approval by the corporate boards of the parties pursuant to their relevantpolicies for related-party transactions.
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Conversion of 71 commercial points, reaching 300 Assaí stores in 2023 including organic expansion
Potential of more than R$25 billion(1) Gross Revenues from converted
stores at maturity
Strategic commercial establishments in exceptional locations in
major cities and metropolitan regions
MAIN TRANSACTION
DRIVERS
Low cannibalization with Assaí current stores given the past common strategy of the two brands and the real estate barrier
~R$100 billion estimated Gross | Acceleration of the expansion |
Revenue in 2024 | pace, mainly in higher income |
classes, with less legal approval | |
complexity |
Rapid maturation with established and well-known
+420k sqm of sales area(2),
+49.8% the current area(3)
Proven and successful model of organic expansion and conversions: +150 stores opened in the last decade, 25 conversions in the last 5 years
Source: Company Information
Notes: (1) Based on the Company's past experience in converting stores, as explained on
Commercial establishments with high potential of profitability
commercial points for more than 20 years
End consumer migration to C&C format (+5 p.p. of share(4)) and
agility gain for the local economy
due to the proximity of the stores to large centers
page 6 of the presentation; (2) Sales area of the current stores inExtra Hiper format; (3) Based on the current sales area of 847 sqm as of Sep/21; (4) Considers the last 18
3
months, according to Nielsen
IRREPLICABLE STORES IN PRIME LOCATIONS
SUBTÍTULO
3
2
1
2 2
1
3 2
51
1
3
2
33 8
2
16
States
~62%
Stores in
Capitals
63 Stores
in Large
Metropolitan
Areas
~50%
Stores in
SP
Conversion plan for
the 71 Extra stores | R$ 8.7 bi | ~3x | R$ 25.0 bi |
Gross | Uplift(2) | Gross Revenues in | |
~40 stores in 2022 | Revenues(1) | the maturity(2) |
~30 stores is 2023
Note: (1) Extra Hiper 7M21LTM gross revenues (does not consider revenues from gas station); (2) Based on the Company's past experience | 4 |
in converting stores, as explained on page 6 of the presentation | |
STORES IN DENSELY POPULATED URBAN AREAS
FACILITATING THE ACCESS FOR B2B AND B2C CUSTOMERS
Campinas - São Paulo State | Salvador - Bahia State | |
1 00m | 1 00m | ||||||||
Accelerated store ramp-up and protection of the most profitable markets
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Sendas Distribuidora SA published this content on 15 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 October 2021 12:41:02 UTC.