Companhia Brslra Dst Adr

results for the fourth quarter 2022 for gpa for those who require simultaneous translation we have this tool available on the platform for this please click on the interpretation icon globe at the bottom of your screen and choose your preferred language portuguese or english

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For those who are listening to the video conference in English, you can mute the original audio in Portuguese. For this, press Mute Original Audio. This video conference is being recorded and will be available at the RI side of the company, where you will also find the material for this release. It is also possible to download the presentation from the chat icon. During the company presentation, all participants will be in listen-only mode. Ensuing this, we will go on to the question and answer session. Should you wish to pose a question, click on the Q&A icon at the bottom of your screen and write your question to become part of the queue. When you are announced, there will be a request for you to turn on your microphone to ask your question. Please ask all of your questions at the same time. The information contained in this presentation and the forward-looking statements made during this video conference referring to the business outlook, projections, and operational and financial goals for GPA are based on the beliefs and assumptions of the company management as well as on information currently available. These forward-looking statements are no guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events and therefore depend on circumstances which may or may not occur. Investors should understand the general economic conditions market conditions and other operational factors could impact the future performance of gpa and lead to results that differ materially from those expressed in the forward-looking statements with us today we have marcelo pimentel ceo and the cfo I will now give the floor to Marcelo Pimentel, who will begin the presentation. Well, thank you, and good morning to all of you. I would like to thank you for your interest in attending our fourth quarter 2022 results call. Since the beginning of the transition year and changes in the GPA strategy, we have recorded imported changes, growth in same-store sales, and an accelerated expansion, two fundamental factors for our growth. In the international perimeter, the business of the Exito Group has had an evolution in the three countries we are present in because of the increase in store traffic and the very good performance of innovative formats besides the multi-channel sales that have a very high share. We have also evolved with the process of segregation of the exito group during the quarter and the beginning of 2023. We have obtained approvals from shareholders and others. We will be attaining another milestone of unharnessing value for the shareholders of GPH. In slide number four, I begin to speak about the main evolution indicators in each of the pillars that are part of our growth strategy. Regarding the top line, we had a growth of 16.8% in total sales and 17.3% in same-store sales vis-à-vis the fourth quarter of 21. In different work fronts that are underway, we have already observed improvements in some of the important indicators of the fourth quarter. Among them, the evolution of the refurbishment of the Pão de Açúcar stores based on the Generation 7. Seventy percent of the stores have been refurbished. a reduction of our breakage in 1.3 percentage points vis-a-vis the fourth quarter of last year, and an increase of 2.79 percentage points in the share of perishables in the total sales. reaching 4.2 percentage points for the Pão de Açúcar banner compared to the fourth quarter of 2021. Perishables records 48% of the sales share, which is fundamental as part of our strategy and the renovation of our business strategy. We continue working with a refresh project that looks upon the value proposal of perishables since the flow of merchandise, their exposure, assortment, and the availability and quality of the product. we have ended up with improvements in profitability and a reduction in breakage. Our goal is to increase the share of the category, reaching a share of 53% at the beginning of next year. In the first quarter of 23, We're going to move forward in the rollout and revision in the clustering of stores, pricing, management of stock and categories. We began in mid-2022. This will unharness more benefits for the operation, and it allows us to think we will have an acceleration of same-store sales, reduction of losses, and, of course, an improvement in customer experience. our second pillar is what guide us regarding the expansion of the level of satisfaction of our customers the nps we have worked in a focused way to mitigate the detractors of nps with a very robust action plan that has led to significant strides and enhancements of 20 points in the global nps in all of our banners vis-a-vis the first semester of 2022 in the digital parameter we have a strategy to speed up our e-commerce and we recorded a growth of 15 year on year compared to 2021 with significant improvements in the service levels that are being presented. We are retail food leaders with 1.7 billion reais for the year, 50% of which is carried out based on our own e-commerce IP. the integration of brick and mortar stores and online stores it continues to move forward we're operating with 600 stores digitally to service more than 30 million customers recorded in our base now this result has been given thrust to based on a strategy based on three points, an increase in assortments, especially perishables, the expansion of availability of delivery schedules, and the expansion of speedy delivery. Nowadays, 70% of our sales are delivered on the same day, and the 60-minute delivery called Praja is already available in 200 stores. We have accelerated the express delivery in 30 minutes in the proximity stores, expanding our partnership with Magalu iFood Shopping, and we have increased by more than 270,000 active users our app, reaching a total of 1.2 million active users per month. In the next slide, I would like to state that we're maintaining our expansion plan, opening 29 new stores between Ponte Azucar and proximity stores. During the year, we have reached the opening of 72 new stores. Regarding the refurbishment, we are at 60% of our store parks that have been revitalized based on the Generation 7 model. And we have an increase in sales in those units. For 2023, we're going to inaugurate 103 new units aligned with our new expansion plan. And until 2024, we will have 309 new stores. 250 will be proximity stores with a focus on Minuto Pão de Azúcar because of its maturity and the greater potential it has for capilarity. This year, we will close down 100% of the – we will refurbish all of the Pão de Azúcar stores. Now, we're going to increase the number of stores in the city of Sao Paulo in verticalized regions. In Pão de Açúcar, our focus are the cities with a high premium potential. where we have a strong presence of the brand, the large centers in the hinterlands of Sao Paulo and some of the cities in the Northeast. Regarding profitability, Guillaume will explain the details to you, therefore I will not refer to this, but I would like to reinforce that we continue on with our work to recover profitability, working along three main lines, an improvement of our commercial lines, a reduction of breakage, and a decrease of expenses. We are gradually evolving in this sense, and it enables us to believe that we will reach an adjusted EBITDA of 8% to 9% until the end of the coming year. I would like to end my presentation on slide six, highlighting the pillars of ESG and culture regarding our goals of consumption of energy we have reached 97 percent medium tension energy that comes from renewable sources we would like to attain 100 in 2024 the scope one and two emissions have more than 40% reduction compared to the base year of 2015. When it comes to fostering diversity and inclusion, I have to highlight the work that has been done to focus on female leadership in the company. We have reached 38.3% of women in leadership positions. and our goal is all point A, and this has been set forth for the year 2024. This allows me to believe that we will comply with our goal of reaching 40% until the end of 2025. When it comes to social impact, we work soundly in terms of donating food, led by the GPA Institute, working along with all of our stores. We have offered more than 4.2 million supplementary meals, working with partner social entities benefiting thousands of companies. This is a work of incentive, and I'm very proud to be part of this. With this, I would like to end my presentation and give the floor to Guillaume, who will speak about our financial highlights.