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Presentación De Powerpoint THE CREATION OF A BUSINESS MODEL FOR ONE OF THE LEADING RETAILERS IN LATAM S e p t e m b e r | 2019 RETAIL PLATFORM IN LATIN AMERICA FASHION AND ELECTRONICS SUPERMARKETS HOME IMPROVEMENT COUNTRIES 7 FINANCIAL SERVICES MARKETPLACE REAL ESTATE US$13.8bn 12.8% US$1.2bn 33% 2Q19 LTM Revenues 2Q19 LTM EBITDA margin 2Q19 LTM NMV 1 Online orders annual growth 2 US$7.6bn 5.3m 504 stores US$1.3 bn 2Q19 Gross Loan Book Active CMR Accounts Three retail formats 2Q19 LTM Digital Channel with balance sales for financial services Source: Company filings Note: Main figures as of June 2019. All dollar figures are calculated based on the observed exchange rate as of July 1st, 2019 (679.15 CLP/US$). EBITDA calculated as Operational income + Depreciation and Amortization; 1 NMV includes revenue generated through online channels for Department Stores in Chile, Peru, Argentina & Colombia; Home Improvement in Chile, Peru, Argentina, Brazil & Uruguay; Supermarkets in Chile & Peru and Linio’s NMV; 2 As of June 2019; Includes C&C and Home delivery orders across the region. REGIONAL FOOTPRINT 2 2 FALABELLA RETAIL 47 Stores 328,000 m2 29 Stores 175,000 m2 25 Stores 176,000 m 10 Stores 57,000 m HOME IMPROVEMENT 90 Stores 775,000 m2 56 Stores 362,000 m2 40 Stores 387,000 m2 9 Stores 94,000 m2 53 Stores 165,000 m2 3 Stores 25,000 m2 3 Stores 35,000 m2 SUPERMARKETS 68 Stores 222,000 m2 71 Stores 246,000 m2 FINANCIAL SERVICES 2,782,000 active credit cards 1,051,000 active credit cards 1,010,000 active credit cards 416,000 active credit cards 185,000 active credit cards REAL ESTATE 26 malls 1,575,000 m2 GLA 14 malls 525,000 m2 GLA 2 malls 76,000 m2 GLA MIX BY COUNTRY (LTM) MIX BY (LTM) BUSINESS Home Improvement 32% 17% Fashion & Electronics 31% 11% Colombia Brazil US$ 5.8 billion revenues Revenue EBITDA US$ 4.1 billion revenues Revenue EBITDA 6% revenue · 7% EBITDA 2% revenue · <0% EBITDA Supermarkets 17% 8% Real Estate 5% 30% Peru Uruguay US$ 2.3 billion revenues Revenue EBITDA 3.2 million m2 of GLA3 Revenue EBITDA 26% revenue · 21% EBITDA <1% revenue · <1% EBITDA Financial Services 15% 34% Chile Argentina US$ 7.4 billion Loan Book Revenue EBITDA 61% revenue · 73% EBITDA 4% revenue · < 1% EBITDA 1. All figures as of June 2019. 2. Mix by Country and Mix by Business as of June 2019. Segment ‘Colombia‘ and ‘Home Improvement‘ does not include Sodimac Colombia ($1.2 Bn in revenue) which we do not consolidate. EBITDA Breakdown does not consider adjustment and eliminations 3. Includes 1,030,000 m2 of additional GLA in free standing stores in the region also owned by Falabella. LEADERSHIP POSITION Fashion & Electronics Home Improvement Supermarkets Financial Services Real Estate MARKET POSITION 1 Revenues MMUS$ Revenues MMUS$ Revenues MMUS$ CMR Accounts Footprint 26 Shopping Centers 2,304 #1 3,106 #1 1,163 #4 2,782,000 #1 #1 CHILE GLA 1.6 million m2 14 Shopping Centers PERU 989 #1 882 #1 1,174 #3 1,051,000 #1 #1 GLA 0.5 million m2 COLOMBIA 654 #1 1,200 #1 1,010,000 #1 2 Shopping Centers ARGENTINA 401 #1 178 #2 416,000 BRAZIL 262 #4 SALES LTM / M 2 (US$) 2 7.091 5.797 4.919 3.982 4.027 2.451 4.459 Falabella Comp. 1 Comp. 2 Sodimac Comp. 1 Tottus Comp. 1 1. Revenues as of June 2019 LTM. Number of CMR accounts, malls and GLA as of June 2019. FX rates as of July 1st , 2019 (679,15 CLP/US$) 2. Sales LTM per square meter as of June 2019. FX rates as of July 1st, 2019 (679,15 CLP/US$). Tottus’ sales area excludes check out area, in order to compare with peer’s reported sales per square meter. CONSTANTLY EVOLVING TO MEET OUR CUSTOMERS DEMANDS Organic Iniciatives 2015 Sodimac opens first Homecenter stores in 1993-5 2013 1980 1999 2002 2006 2009 Brazil and Uruguay Entry to Argentina Falabella Falabella & Launch of Launch of and Colombia Falabella.com First Tottus launches CMR Homy launched in Chile opened in Peru CMR enter Colombia Móvil Falabella Sodimac.com launched in Peru 2014 2017 1990 2010-11 2001 2005 Sodimac.com Falabella builds its 1998 Falabella.com launched in Colombia The first Falabella- first shopping center Banco Falabella Sodimac.com Falabella.com launched in Colombia Tottus.com launched in Soriana credit card Mall Plaza launched in Chile launched in Chile launched in Tottus.com launched in Chile Peru was issued in Mexico Argentina Mergers & Acquisitions 2013 2003 2007 2014 2016 2018 Falabella Sodimac acquires Sodimac acquires Sodimac acquires Falabella & Soriana form & Sodimac merge Imperial in Chile Falabella announced the Dicico in Brazil Maestro in Peru partnership to develop home acquisition of 100% of 1993-5 2008 improvement and financial 2004 Linio and signed an MOU services in Mexico Falabella acquires Falabella acquires to develop and operate Saga IKEA Falabella acquires Casa Estrella San Francisco in Colombia Mall Plaza acquires Mall in Chile Las Americas in Chile CURRENTLY STRENGTHENING OUR DIGITAL ECOSYSTEM CAPABILITIES LOGISTICS LOYALTY MARKETPLACE PAYMENT SOLUTIONS DATA ANALYTICS & BI FINANCIAL SOLUTIONS BASED IN FIVE STRATEGIC PRIORITIES 01 02 03 04 05 Differentiated Scaling Up Financing and Data Analytics Technological Value Logistics Payments and Business Platform Proposition And Fulfillment Intelligence Development Building a digital ecosystem leveraged on our unmatched physical assets STRONG FINANCIAL POSITION 66% 17% Debt By Creditor Debt By Maturity w/o Banking Operations 34% w/o Banking Operations 83% 5.0 years US$ 4,647 MM Duration Financial Debt w/o Banks Public bonds Financial institutions Short term Long term Net Financial Debt/Ebitda (times) Leverage (times) w/o Banking Operations w/o Banking Operations Jun 2019 3.56 Jun 2019 1.01 Jun 2018 4.04 Jun 2018 1.03 CAPITAL EXPENDITURE ORGANIC INVESTMENT PLAN 2019 - 2022 US$ 4.2 bn 37% 34% 29% Investment over the next 4 years IT and logistics projects New stores & shopping centers Remodeling and expansions STORE AND SHOPPING CENTERS OPENINGS INVESTMENT (US$ MILLION) 2 2 1 5 1,115 Shopping 1,084 Centers 1,072 929 26 95 Stores 23 23 23 2019 2020 2021 2022 2019 2020 2021 2022 Note: The investment plan includes 100% of expected capex for S.A.C.I. Falabella and subsidiaries, including Sodimac Colombia, Sodimac Mexico, CMR Mexico, which the Company does not consolidate. FOSTERING AN ENTREPENEURIAL CULTURE DRIVEN BY OUR VALUES ONE FALABELLA TEAM Exceed Make things Meritocracy Purposeful customers’ happen actions expectations investors.falabella.com [email protected] Andrea González, Head of IR Pablo Muñoz, IR Analyst S e p t e m b e r | 2019.
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