SACI FALABELLA

CORPORATE PRESENTATION

AUGUST 2015

CONTENTS

The Company

Key Investment Highlights

Consolidated Statements

Corporate Structure

Overview per Business Unit

FIVE BUSINESS UNITS 126 YEARS OF HISTORY

DEPARTMENT
STORES

HOME
IMPROVEMENT

SUPERMARKETS

FINANCIAL
SERVICES

REAL ESTATE

US$ 4,055 m
Revenues

US$ 5,713m
Revenues1

US$ 1,986 m
Revenues

US$ 6,038 m
Loan Book

2.0 million
m2 GLA2

100 stores

244 stores

102 stores

4.7 million
CMR accounts

Note: Revenues as of June 2015 LTM. Number of stores/malls as of August 25 th 2015. Number of CMR accounts as of June 2015. FX rates as of July 1st, 2015 (639.04 CLP/US$).
Data includes Sodimac Colombia and Aventura Plaza, which do not consolidate.
1.
Does not include Uruguay revenue.
2.
The Falabella Group owns 991.000 m2 of additional GLA in free standing stores across the region.

1 million m2 of additional GLA

in free standing stores in the
region.

20 / 19
Malls / Power
& Shopping
Centers

PRESENCE IN 6 COUNTRIES IN LATIN AMERICA

DEPARTMENT STORES

HOME
IMPROVEMENT

SUPERMARKETS

FINANCIAL SERVICES

45 stores
304,000 m2

85 stores
703,000 m2

53 stores
187,000 m2

2,353,000 active
CMR cards

25 malls
1,422,000 m2 GLA

26 stores
162,000 m2

57 stores
372,000 m2

49 stores
182,000 m2

1,033,000 active
CMR cards

13 malls
521,000 m2 GLA

18 stores
114,000 m2

35 stores
338,000 m2

817,000 active
CMR cards

1 mall
26,000 m2 GLA

11 stores
58,000 m2

8 stores
84,000 m2

519,000 active
CMR cards

REAL ESTATE

58 stores
132,000 m2
1 store
12,000 m2

Note: Number of stores and sales area as of August 25th 2015. Number of CMR accounts with balance and employees as of June 2015.
Includes Sodimac Colombia and Aventura Plaza in Peru, which the Company does not consolidate.

KEY FIGURES
Main Figures

39

446

Total
Revenues

Loan
Book

CMR
Accounts

stores

malls

12,475 M US$

6,038 M US$

+4,722,000

2,649,000 m2

1,969,000 m2

Mix by Country (LTM)

sales area

GLA

Employees in the Region

Total: 102,900

7% 2% <1%

5%

6%

+14,600

4%

+3,500
+29,200

21%

25%

Revenues

EBITDA
+49,900
59%

71%

Note: Revenues and EBIDA does not consider Sodimac Colombia and Aventura Plaza in Peru, which do not consolidate.
Number of stores and sales area as of August 25th 2015.

+200
+5,500

CONTENTS

The Company

Key Investment Highlights

Consolidated Statements

Corporate Structure

Overview per Business Unit

KEY INVESTMENT HIGHLIGHTS

1.

Leadership
in Latam
across
formats

3.

2.
Responsible
growth
strategy

5.

Differentiating
brands

6.
Experienced
management
team

4.

Sustainable
business
development

Customer
centric strategy

7.
Corporate
governance
practices

1. LEADERSHIP IN LATAM ACROSS FORMATS

Market Position1
Department Stores
Revenues

Market position

Home Improvement
Revenues

Market position

Supermarkets
Revenues

Financial Services

Market position

CMR Accounts

Market position

2,040 M US$

#1

2,986 M US$

#1

1,003 M US$

#4

2,353,000

#1

895 M US$

#1

891 M US$

#1

983 M US$

#3

1,033,000

#1

581 M US$

#1

1,275 M US$

#1

263 M US$

#2

297 M US$

#4

538 M US$

817,000

Real Estate
Market position

25 Shopping Malls
GLA 1.4 M m

#1

13 Shopping Malls
GLA 0.5 M m

#1

1 Shopping Mall

519,000

Only relevant player

Sales / m2 (US$)2

Department Stores in Chile

Home Improvement in Chile

Supermarkets in Peru

1. Revenues as of June 2015 LTM. Number of CMR accounts, malls and GLA as of June 2015. FX rates as of July 1st, 2015 (639.04 CLP/US$).
2. Sales per square meter as of March 2015. FX rates as of April 1st, 2015 (626,67 CLP/US$). Tottus sales area excludes check out area, in order to compare with peers reported sales per
square meter.

2. RESPONSIBLE GROWTH STRATEGY

Organic Initiatives
Falabella
launches
CMR

Entry to
Argentina, Peru
and Colombia

Falabella
develops its
first shopping
center
Mall Plaza

Sodimac opens first Homecenter

stores in Brazil and Uruguay

Falabella.com
launched
in Chile

Banco
Falabella
launched
in Chile

1980 1990 1993-5 1998

First Tottus
opened
in Peru

Falabella &
CMR enter
Colombia

Sodimac.com
launched
in Chile

1999

Mergers & Acquisitions

2001

Launch of
Homy

Falabella.com
launched
in Argentina

2002 2003

2004

2005

Falabella &
Sodimac
merge

Falabella
acquires
San Francisco
in Chile

Launch of
Mvil
Falabella

Falabella.com
launched
in Colombia

Sodimac.com
launched
in Colombia

Tottus.com
launched in
Chile

Tottus.com
launched in
Peru

2006 2007 2008 2009 2010-11 2013

Sodimac
acquires
Imperial
in Chile

Falabella
acquires
Casa Estrella
in Colombia

Sodimac.com
launched
in Peru

2014

Sodimac
acquires
Dicico
in Brazil

2015

Sodimac
acquires
Maestro
in Peru

Mall Plaza
acquires Mall
Las Americas
in Chile

INVESTMENT PLAN 2015 - 2018

Investment Plan 2015 - 2018

US$ 4.4 bn

140 stores

investment for the

next 4 years
11 malls

Investment (US$ m)

Store and Mall Openings

Stores

Malls

Note: Figures include 100% of the investment in fixed assets, including Sodimac Colombia and Aventura Plaza, which the Falabella Group does not consolidate in the Financial Statements.

10

3. DIFFERENTIATING BRANDS
Private Labels

Exclusive Brands

11

4. CUSTOMER CENTRIC STRATEGY

Our Customers1

+290

+4.7

million

million

CMR accounts
with a balance

transactions in our
retail businesses

350
million

+1.4

visits to our
shopping centers
in the region

bank accounts with

Banco Falabella

million

300,000
Passengers
travelled using
Viajes Falabella

Customer knowledge through consistent interaction

Commercial
Platform
What does
she like

When does
she purchase

How much
does she
spend

What does
she buy

Where
does she
purchase

Means of
payment

Self Service
Stations

Websites

Mobile
Apps

ATM

Contact
Center

Social
Networks
Points of
Sale

1. Number of CMR accounts as of June 2015. Other data as of December 2014.

12

5. EXPERIENCED MANAGEMENT TEAM

Main Executives

16 years

in average
in the Group

CEO
- 20 years -

CFO
- 8 years -

Chief
Planning and
Development
Officer
- 6 years -

Peru Country
Manager
- 26 years -

Colombia
Country
Manager
- 20 years -

Argentina
Country
Manager
- 16 years -

Brazil Country
Manager
- 2 years -

CIO
- 23 years -

Department
Stores GM
- 15 years -

Home
Improvement
GM
- 13 years -

Supermarkets
GM
- 13 years -

Financial
Services GM
- 6 years -

Mall Plaza
GM
- 25 years -

Open Plaza
GM
- 20 years -

General
Counsel
- 20 years -

Employees

+102,900

46%

+75,000

+3.6

30%

employees

women

employees
evaluated

million hours
of training

of employees
belong to a union.
53% in Chile.

Note: Number of employees as of June 2015. Other figures as of December 2014.

13

6. SUSTAINABLE BUSINESS DEVELOPMENT

Community

Haciendo
Escuela

91

schools

+81,000

students benefited

Crculo de
Especialistas

+350,000
specialist workers

Financial
Education
Program

Healthy
Eating
Program

Biblioteca
Viva

57 courses taught in
17 schools from
Haciendo Escuela

Implemented in
low- income
schools

9 libraries inside malls

155,000 materials
provided

Environment

Suppliers

+20,000 suppliers
50% SMEs
Partnership with
Falabella

18 certified stores and

1 shopping center
with LEED
pre-certification

30 stores and
19 eco-friendly
shopping centers

Sodimac

Note: Information as of December 2014.

14

7. CORPORATE GOVERNANCE PRACTICES

Board of Directors

Board Committee

Chairman
Carlo Solari Donaggio

2014

Vice-Chairman
Juan Carlos Corts Solari

2014

Directors
Jos Luis del Rio Goudie
Sergio Cardone Solari
Carolina del Rio Goudie
Mara Cecilia Karlezi Solari
Paola Cuneo Queirolo
Carlos Alberto Heller Solari

2003
1986
2011
2003
2014
2002

Independent Director
Hernn Bchi Buc

1996

Audit
Committee

Compensation
and Talent
Committee

Strategy
Committee

Free Float
19%
Presence of an
independent
director at
holding level
and in relevant
subsidiaries

Controlling
Group
consisting of
7 families

Controlling
Group
81%

Note: Information as of 31st March 2015

15

CONTENTS

The Company

Key Investment Highlights

Consolidated Statements

Corporate Structure

Overview per Business Unit

CONSOLIDATED STATEMENTS
Income Statement
2Q14

2Q15

Var %

1S14

1S15

Var %

2,845

3,133

10.1%

5,543

6,183

11.6%

994

1,121

12.8%

1,919

2,172

13.2%

34.9%

35.8%

34.6%

35.1%

(701)

(799)

(1,366)

(1,562)

SG&A / Rev enues

(24.6%)

(25.5%)

(24.7%)

(25.3%)

Operational Income

293

322

553

610

10.3%

10.3%

10.0%

9.9%

77

90

152

181

370

411

704

791

13.0%

13.1%

12.7%

12.8%

(2)

(6)

(USD Million)
Total Rev enues
Gross Profit
Gross Margin
SG&A Expenses

Operational Margin
Depreciation + Amortization
EBITDA
EBITDA Margin
Other Income / (Expenses)
Net Financial Income / (Cost)

(72)

14.0%
9.9%

11.2%

(79)

(125)

14.3%
10.4%

12.3%

(123)

Profit / (Loss) in Associates

18

19

Exchange Rate Differences

(5)

(1)

(24)

(16)

Non-Operating Profit

(71)

(70)

(1.2%)

(131)

(126)

(4.2%)

Profit Before Tax Expenses

221

251

13.5%

422

485

14.9%

Income Tax

(43)

(54)

(82)

(108)

Minority Interest

(15)

(16)

(29)

(30)

164

181

311

346

5.8%

5.8%

5.6%

5.6%

Net Profit / (Loss)

Net Margin

Note: Financial information at FX rates as of July 1st, 2015 (639.04 CLP/US$).

10.0%

11.5%

17

CONSOLIDATED STATEMENTS
Balance Sheet
(USD Million)
Cash & cash equiv alents

Dec 14

Jun 15

Dec 14

Jun 15

Other current financial liabilities

1,153

1,123

1,512

1,275

448

396

Total Non-Banking Current Liabilities

3,112

2,794

3,625

3,828

685

687

Total Non-Banking Non-Current Liab.

4,310

4,515

Total Non-Banking Oper. Liabilities

7,421

7,309

(USD Million)

331

274

Current trade & other receiv ables

2,286

2,361

Current trade & other payables

Inv entories

1,595

1,603

Others

277

267

4,489

4,506

Non-Current trade & other receiv ables

323

316

Other non-current financial liabilities

Goodwill

724

716

Others

6,638

6,724

Others
Total Non-Banking Current Assets

PP&E & Inv estment properties

Others

891

1,006

Total Non-Banking Non-Current Assets

8,575

8,762

Total Non-Banking Operations Assets

13,064

13,267

Loans & accounts receiv able from clients

3,412

3,588

Others

1,278

1,484

Total Banking Operations Assets

4,690

5,071

17,754

18,339

TOTAL ASSETS

Total Banking Oper. Liabilities

TOTAL LIABILITIES
Shareholders' Equity
TOTAL EQUITY & LIABILITIES

3,857

4,281

11,278

11,590

6,476

6,748

17,754

18,339

Note: Financial information at FX rate as of July 1st, 2015 (639.04 CLP/US$).

18

FINANCIAL SITUATION
Net Financial Debt / EBITDA
w/o Banking Operations (times)

Debt Profile
w/o Banking Operations

Maestro
effect

18%

Short-term

Leverage

4,735 M US$

w/o Banking Operations (times)

Financial Debt1
w/o Banks

42%

58%

Financial
institutions

Public
Bonds

5.43 years
duration

Note: Financial information at FX rate as of July 1st, 2015 (639.04 CLP/US$).

1. Does not include accrued interests

19

CONTENTS

The Company

Key Investment Highlights

Consolidated Statements

Corporate Structure

Overview per Business Unit

CORPORATE STRUCTURE
SACI Falabella
94%

Chile

Peru1

Argentina

Colombia

95%

Falabella

100%

Falabella

65%

Sodimac

100%

Sodimac

49%2

CMR

100%

Banco Falab. 65%

Falabella

100%

Saga Falab.

Sodimac

100%

Sodimac

100%

Imperial

60%

Maestro

100%

Tottus

88%

Tottus

100%

CMR

100%

Banco Falab.100%

Brazil

Dicico 50.1%

Uruguay

Sodimac

100%

Banco Falab.100%
Open Plaza 100%
Mall Plaza

60%

Open Plaza 100%

Avent. Plaza 40%2

Mall Plaza

100%

20%

1 Through Falabella Per S.A.A..

2 Does not consolidate.

21

CONTENTS

The Company

Key Investment Highlights

Consolidated Statements

Corporate Structure

Overview per Business Unit

DEPARTMENT STORES
Business Overview
100 stores in Chile, Peru, Colombia and Argentina
Main categories: apparel, home electronics and home decor
Diverse portfolio of private brands, second generation

Local
market
customization

Differentiation

and exclusive brands, in addition to international brands

Private brands

Leading online retailer

Operates specialty stores for exclusive and second generation
apparel and footwear brands

Regional Footprint

Revenues
(US$ m, June 2015 LTM)

Chile

45 Stores

Peru

26 Stores

Colombia

18 Stores

Argentina

11 Stores

Profitability

Sales / m2 1
(US$, June 2015 LTM)

Total: 4,055 US$ m

Note: Figures in US$ converted using the July 1st, 2015 (639.04 CLP/US$). Number of stores as of August 25th, 2015.
1. Sales LTM divided by average m2

23

HOME IMPROVEMENT
Business Overview
244 stores in Chile, Peru, Colombia, Argentina, Brazil and Uruguay
Main categories: construction materials and home improvement
products , carpentry, design furniture and home terminations

Construction
companies

Contractors &
specialists

Six formats: Homecenter, Sodimac Constructor, Imperial,

Homy, Dicico and Maestro

DIY

Expertise in selling directly to construction sector players and large companies

Families

Strong online sales strategy

Regional Footprint

Revenues
(US$ m, June 2015 LTM)

Chile

85 Stores

Peru

57 Stores

Colombia

35 Stores

Argentina

8 Stores

Brazil

58 Stores

Uruguay

1 Stores

(US$, June 2015 LTM)

Total 2 : 5,713 US$ m

Note: Figures in US$ converted using the July 1st, 2015 exchange rate (639.04 CLP/US$). Number of stores as of June 2015.
1. Sales LTM divided by average m2
2, Does not include revenue from Uruguay.

Sales / m2 1

24

SUPERMARKETS
Business Overview
Started operations in 2002 in Peru under Tottus brand and entered
Chilean market in 2004 with the acquisition of San Francisco
Operates 102 stores in Chile and Peru, with three formats:

Supermarkets
Hypermarkets
Bodegas

Private label
products

hypermarkets , supermarkets and Hiperbodega Precio1

Price
positioning

Increased penetration of private labels

E-commerce platform
Weekly deals

Regional Footprint

Revenues
(US$ m, June 2015 LTM)

Chile

53 Stores

Peru

49 Stores

Sales / m2

(US$, June 2015 LTM)

Total: 1,986 US$ m

Note: Figures in US$ converted using the July 1st, 2015 exchange rate (639.04 CLP/US$). Number of stores as of June 2015.
1. Sales LTM divided by average m2
Sales area considered for Tottus does not include the cash area in order to be comparable with peers sales area.

25

FINANCIAL SERVICES
Business Overview
Falabella Financiero offers a mix of integrated financial
products and services.
Provides customers access to credit, combining the
traditional financial business with the proximity to
customers through retail formats.
Five business units: CMR Falabella (credit card),
Banco Falabella (bank), Seguros Falabella (insurance
broker), Viajes Falabella (travel agency) and
Mvil Falabella (mobile virtual operator)
Operates in Chile, Peru, Colombia and Argentina

Regional Footprint

Loyalty
Frequency
Immediate needs

Gross Loan Portfolio

(US$ m, June 2015)

Chile

2.3 m CMR accounts

95 bank branches

Peru

1.0 m CMR accounts

60 bank branches

Colombia

0.8 m CMR accounts

54 bank branches

Argentina

0.5 m CMR accounts

Transparency
Convenience
Simplicity

Integrated
offering

Loan Loss Provision1

(%, June 2015)

Total: 6,038 US$ m

1. Per local regulation (not comparable across the countries)

Note: Figures in US$ converted using the July 1st, 2015 exchange rate (639.04 CLP/US$).

26

REAL ESTATE
Business Overview
Largest operator in Chile and Peru, and one of the leaders
in Latin America:
Mall Plaza: Operates large shopping malls in Chile,

Entertainment
Shopping
Culture

Sustainable
construction

Peru (through Aventura Plaza) and Colombia.

Meeting
places

Open Plaza: Operates small shopping centers with

2 or 3 anchor stores, as well as other third-party

Urban centers

minor stores.

Regional Footprint

Integrated Offering2

# Shopping Malls
jun-14
jun-15

'000 GLA
jun-14
jun-15

Mall Plaza
Open Plaza
CHILE

14
10
24

15
10
25

1.136
235
1.371

1.190
232
1.422

Aventura Plaza
Open Plaza
PERU

4
8
12

4
9
13

258
232
490

274
247
521

Mall Plaza
COLOMBIA

1
1

1
1

26
26

26
26

TOTAL

37

39

1.887

1.969

792

991

Free Standing Stores1

1. Owned by the company throughout the region.
2. Information for Mall Plaza shopping centers as of December 2014

+2,200
specialty
stores

+390
restaurants

98
cinema
screens

14
medical
centers

9
public
libraries

16
gyms

39
game
areas

11
educational
institutions

3
exhibition
rooms

27

CONTACT INFORMATION

www.falabella.com/inversionistas
inversionistas@falabella.cl
Phone: +56 2 2380 2012

Jordi Gaju

Alejandro Gonzlez

Chief Development Officer

Chief Financial Officer

jgaju@falabella.cl

alejgonzalez@falabella.cl

Isabel Darrigrandi

Mara Paz Fernndez

Head of IR

IR Analyst

idarrigrandi@falabella.cl

mpafernandez@falabella.cl

DISCLAIMER

This presentation contains forward-looking statements, including statements

regarding the intent, belief or current expectations of the Company and its
management. Investors are cautioned that any such forward-looking

statements are not guarantee of future performance and involve a number

of risks and uncertainties including, but not limited to, the risks detailed in the
Companys financial statements, and the fact that actual results could differ
materially from those indicated by such forward-looking statements.