Falabella Perú Peru Finance & Banking Day 2013 Julio Alcalde – Chief Financial Officer Falabella at a Glance
Operational Highlights Consolidated Financial Highlights
. Multi-format retailer in Chile, Peru, Colombia, Argentina and Brasil US$ millones 2012 2011 2010 . 298 stores and 2.0 million sqm of retail space1 Total Revenues 12,309 10,718 9,143 . 32 malls / shopping centers with 1.6 million sqm of leaseable space Retail + Banking EBITDA 1,594 1,624 1,469 . US$ 6.1 billion gross loan portfolio (~35% credit card) Retil EBITDA 1,451 1,476 1,334 . 4.2 million CMR active accounts Total Profit 853 975 945 . Over 93,000 employees Business Lines
DEPARTMENT HOME FINANCIAL SUPERMARKETS REAL STORES IMPROVEMENT SERVICES ESTATE
REVENUES REVENUES REVENUES GROSS LOANS GLA US$ 4,514MM US$ 5,351 US$ 1,933 MM US$ 6,032 MM 1.6 MM sqm 86 stores 135 stores 77 stores +4.2 MM CMR 31 shopping acitve accounts center & malls
Note: 1. Excludes Real Estate business Falabella Today
Regional Footprint
Revenues by Country: US$ 12,309 mm (2012) . 14 Department Stores 301 stores . 29 Home Improvement 32 malls . 1 Mall 7% 5% 7% 15%
65% 21%
. 20 Department Stores 79% . 19 Home Improvement 2012 2006 . 35 Supermarkets . 4 Malls Revenues by Business Line . 7 Power Centers / Shopping Centers
Real Estate, Banking 4% Business, 7%
Credit Card Services, 6% . 42 Department Stores Department . 80 Home Improvement Stores, 36% . 44 Supermarkets Supermarket s, 15% . 13 Malls . 11 Department Stores . 7 Power Centers / Shopping Centers . 7 Home Improvement Home Improvement, 32% Group Falabella Enters Brazil
57 Falabella signed binding agreements to acquire 50.1% of Dicico, a home Stores improvement chain
Considers investment of R$ 388 M: - R$ 319M through a capital increase - R$ 69M to purchase existing shares
The company has the largest chain store in the state of Sao Paulo, and is R$ 789m one of the five largest in terms of revenues in the country Revenues
+3k Workets Falabella Peru
Falabella Peru
Saga Falabella Tottus Sodimac Open Plaza Banco Falabella 20 stores 35 stores 19 stores 07 Shopping centers 0.95 mm active SSS 2012: 8,1% SSS 2012: 8,5% SSS 2012: 18,5% m2: +200,000 CMR accounts m2: +130,000 m2: +140,000 m2: +150,000
40% Falabella Peru
Other business
Aventura Plaza 04 shopping centers sqm: 229,000 Evolution of Falabella Peru
Tumbes Amazonas 1995
Piura Loreto Lambayeque Revenues USD 48 MM Cajamarca San Martín
La Libertad
Áncash Huánuco EBITDA USD 4.4 MM Ucayali Pasco
Lima y Callao Madre de Dios Junin 02 stores (22,943 sqm) Cusco Huancavelica
Ica Apurimac Puno Ayacucho
Arequipa
Moquegua
Tacna Evolution of Falabella Peru
Tumbes Amazonas 2012
Piura Loreto Lambayeque Revenues USD 2,596 MM Cajamarca San Martín
La Libertad
Áncash EBITDA USD 298 MM Huánuco
Ucayali Pasco
Lima y Callao Madre de Dios Junin 74 Stores (420,000 sqm) Cusco Huancavelica
Ica Apurimac Puno 07 shopping centers / malls Ayacucho
Arequipa
Moquegua
Tacna \\cnyc12p20001b\jvargas1$\Pr ojects\EPM\JPY swaps.ppt - 15 years of strong growth…May 14 2004 - 17:38 /8
3,000 Revenues US$ (MM) 2,596 2,500 2,109 2,000 1,549 1,582 1,500 1,075 1,000 750 658 641 549 567 500 357 417 245 294 136 179 181 213 48 95 - 350 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13 EBITDA US$ (MM) 298 250 Operating Profit 234 300 266 US$ (MM) 209 250 200 182 221
200 178 150 139
150 100 100 80 100 70 54 58 60 54 50 41 38 43 50
- - 2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13 2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13 Saga Falabella
Description of the company Overview
• Over 50 years of strong performance with world- 14.0% 930 1,000 class operating techniques 12.7% 12.0% 740 800 • Strong brand recognition across the country, 10.0% 635 9.8% with 20 stores (10 out of Lima) 8.0% 8.1% 600 • Market leadership supported by elements that 6.0% 1.5% ensure success in the industry: 12.0% 400 4.0% 184 201 . Attractive locations and format 200 2.0% . Supply and variety of products 0.0% - . Credit to consolidated a loyal costumer base 2010 2011 2012 1Q12 1Q13 . Purchase with conditions Revenues (USD MM) SSS . Exclusive powerful brands
Highlights Overview (USD MM and M2) 2010 2011 2012 1Q13 • Number of workers, 10th GPTW 2012 6.9k Revenues 635 740 930 201 • Average Sales per SQM, USD 2012 7.3k Area 113,694 117,647 128,061 128,061 SSS 12.7% 9.8% 8.1% 1.5% • Average SQM per store, 2012 6.7k Stores 17 17 19 19 Hipermercados Tottus
Description of the company Overview • Began operations in 2002 as part of Saga until 16.0% 14.4% 1,000 it was spun off in June 2004. HT is dedicated to 14.8% 866 the grocery retailing, consumer goods, household 14.0% 10.3% 800 appliances, among others. 12.0% 615 10.0% 600 • 35 stores strategically located across the 472 country (15 out of Lima) 8.0% 8.5% 15.0% 6.0% 400 • Strong growth and leadership supported by 225 4.0% 191 elements that ensure success in the industry: 200 2.0% . Supply and variety of products (food and non food) 0.0% - . Attractive locations and new store formats 2010 2011 2012 1Q12 1Q13 . Strong brand positioning Revenues (USD MM) SSS . Quality products at the lowest price
Highlights Overview (USD MM and sqm) 2010 2011 2012 1Q13 • Number of workers, #15 GPTW 2012 7.8k Revenues 472 615 866 225 • Average Sales per SQM, USD 2012 7.1k Area 107,597 116,158 140,345 140,345 SSS 14.8% 10.3% 14.4% 8.5% • Average SQM per store, 2012 4.0k Stores 24 27 33 33 Sodimac Peru
Description of the company Overview • Trading of items for the construction, repair, equipment and decoration of homes. 20.0% 600 515 • 19 stores strategically located across the 16.7% 500 country (9 out of Lima) 15.0% 372 13.8% 400 • Leadership supported by elements that ensure 10.8% 11.0% succes in the industry: 10.0% 263 300 15.7% . Competitive prices between specialist and common 126 145 200 people 5.0% 100 . Strong brand positioning 0.0% - . Excelent costumer service and quality products at lower 2010 2011 2012 1Q12 1Q13 price Revenues (USD MM) SSS . #1 GPTW 2010 , #2 GPTW 2011 and #5 GPTW 2012
Highlights Overview (USD MM and sqm) 2010 2011 2012 1Q13 • Number of workers, #5 GPTW 2012 4.2k Revenues 263 372 515 145 • Average Sales per SQM , USD 2012 2.9k Area 123,125 131,567 136,922 145,819 SSS 11.0% 16.7% 13.8% 10.8% • Average SQM per store, 2012 7.6k Stores 16 17 18 19 Banco Falabella
Description of the company Financial Indicators (USD MM) • BF arises from the transformation to bank from 50.0% 1,000 Financiera CMR. 916 885 48.9% 48.5% 48.0% • CMR cards are their main product, however the 731 47.4% 733 800 bank is fostering new products and expanding the 46.0% 565 usage of the card by using the Visa network 44.8% 600 44.0% • Important synergies with the retail business 42.7% 400 that allows to maintain the dynamic growth in the 42.0% business activity of the group 40.0% 200 • Growing focus on expanding the available portfolio of products and services targeting their 38.0% - customer base 2010 2011 2012 1Q12 1Q13 Total Loans (USD MM) Retail Sales w/CMR
Other comments about the company Loans Portfolio (USD) 2010 2011 2012 1Q13 • % of total sales paid with CMR, for SF, 42.7% HT, SD as of 2012 Total Loans (MM) 555 717 916 885 Open Accounts • Average duration (months) 9,3 817.2 891.6 949 949 w/balance (000) • Average loan (USD) % Retail sales 879 48.9% 48.5% 47.4% 42.7% paid with CMR
Average loan 663 804 916 885 Open Plaza
Description of the company Locations • OP is dedicated to developing and managing malls with at least a couple of stores from the retail business Piura Tumbes Amazonas
Piura Loreto • There are two types of format: Chiclayo Lambayeque
Cajamarca • San Martín 04 Power Centers Trujillo La Libertad
Áncash Huánuco • 03 Shopping Malls Ucayali Canta Callao, Bellavista Pasco
Lima y Callao Madre de Dios Junin
Atocongo, Angamos Cusco Huancavelica
Ica Apurimac Puno Ayacucho
Arequipa
Moquegua
Tacna
Other comments about the company Net selling area and number of stores (sqm) 2010 2011 2012 1Q13 • The Falabella Peru group has a stake in 40% the shareholding of Aventura Plaza Area 191,378 191,378 205,604 205,604 • The Company maintains a leasable area # of Malls 7777 of approximately 200k Shopping malls 3333
Power centers 4444 \\cnyc12p20001b\jvargas1$\Pr ojects\EPM\JPY swaps.ppt - Consumer-centric approachMay 14 2004 - 17:38 /14
Consistent interaction with our customers...... allows us to evolve and remain close to our customers
Immediate Access to goods through Necessities installment payments
Lower Risks Relationship Benefits with our Customer
Suitable Purchase Deals‐of‐the‐ frequency day Client Understanding ...and to anticipate their preferences and design targeted marketing campaigns
What does she buy
When does she Means of purchase payment DNA Where does How much she does she Intelligence purchase spend What does What are she like her Customer’s
Business interests Capital markets financing
Bonds with Bonds with internal Plain vanilla e-prospectus external credit credit enhancements Bonds enhancements offerings
Falabella Perú public issues by type Falabella Perú share of PEN of debt denominated debt public offerings Source: SMV / S/. Millions Source: SMV / S/. Millions 300 345 50% 250 40% 200 285 30% 150 250 165 20% 100 50 10% 50 14.4% 7.3% 8.3% 0 0% 2008 2009 2010 2011 2012 2011 2012 Abr-13 Bonds CP CD Securizations Other Falabella Over 10 years in the local capital market
March 2001 June 2003 June 2005 September 2005 July 2006
S/. 80,000,000 S/. 150,000,000 USD 50,000,000 S/. 320,000,000 USD 35,000,000 Primer Programa Segundo Programa Primer Programa de Tercer Programa de CDN de CDN Bonos Titulizados Primer Programa de CDN de Bonos Corporativos
January 2007 October 2007 December 2007 December 2007 October 2010
USD 10,000,000 S/. 38,000,000 S/. 200,000,000 S/. 50,000,000 S/. 250,000,000 Primer Programa de Primer Programa de Cuarto Programa Segundo Programa Primer Programa de Papeles Comerciales Bonos Titulizados de CDN de Papeles Comerciales Bonos Corporativos
October 2010 May 2011 November 2011 December 2011 April 2012
S/. 200,000,000 S/. 60,000,000 S/. 60,000,000 S/. 150,000,000 S/. 150,000,000 Primer Programa de Primer Programa Primer Programa de Tercer Programa de Papeles Tercer Programa de Bonos Bonos Corporativos de Bonos Titulizados Papeles Comerciales Comerciales Corporativos