EARNINGS PRESENTATION Fourth Quarter 2019 · This presentation contains forward-looking statements, including statements regarding the intent, belief or current expectations of the

EARNINGS

PRESENTATION

Fourth Quarter 2019

DISCLAIMERThis 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 a guarantee of future performance and involve a number of

risks and uncertainties including, but not limited to, the risks detailed in the company’s financial statements, and actual results could differ materially

from those indicated by such forward-looking statements.

Our strategic

priorities

01

Differentiated Value

Proposition

02

Scaling Up Logistics

And Fulfillment

03

Financing and

Payments

04

Data Analytics

and Business

Intelligence

05

Technological

Platform

Development

Building a digital ecosystem leveraged on our unmatched physical assets

3

Falabella Retail

23% penetration

Home Improvement

Supermarkets

US 264 Mn

US 49 Mn

US 11 Mn

ONLINE

SALES 4Q19

Note: This information does not include Linio

T O T A L O N L I N E S A L E S

11.4%Online penetration

+28% Growth NMV

Ecommerce sales

NMV Linio

Mn US; annual var. (%)

+240 Mn, Visits to our retail

platforms

+3.8 Mn,

+25% YoY growthOrders on our ecommerce

sites

4Q19 |

continuous growth

of our online channels

US 371 Mn, +29%4Q19 online sales of financial products; growth

271 323

41 75

312 398

4Q18 4Q19

4

NMV 1

Annual Var (%)

FX neutral

Market place

performance

1 NMV corresponds to Net Merchandise Value. A measure of the total sum of all transactions made through Linio, net of VAT

153% 87% 65% 51%

Peru Chile Colombia Others

Marketing investment accelerated,

increasing traffic by 104% and

number of SKUs in 39%.

MAIN

EVENTS

5

Mexico2 logistic centers

18,000 Sqm

Colombia10 logistics centers

146,000 Sqm

Peru15 logistics centers

296,000 Sqm

Chile39 logistics centers

780,000 Sq m

1 Food Production Center

+8,000 Sqm

Argentina3 logistics centers

63,000 Sqm

2. Information only for operation in Chile

ASSORTMENT AVAILABLE FOR DISPATCH IN 24 HRS.2

76% Falabella Retail79% Sodimac

CLICK AND COLLECTPENETRATION

+60% Falabella Retail

Logistics capabilities and

network

Brazil2 logistics centers

63,000 Sqm

6

FINANCIAL RESULTS

R E V E N U E S


4Q19 |

Revenue

+1.6%Growth

4Q18 4Q19

3,4193,473

8

-4.7%Growth

35.2%Gross margin

G R O S S P R O F I T


Gross profit

4Q18 4Q19

1,283 1,223

9

IFRS 16 Effect

-32.8%Growth as reported

-37.4%Excluding IFRS 16

6.8%Operating Margin as reported

Operating Income

O P E R A T I N G I N C O M E


Operating Income

352221

As

reported

236

4Q18 4Q19

10

Operating Income (US Mn)

11

267236

-33 -14 16

352

4Q18 Op Income 4Q19 Adjusted Op

Income

IAS 29 - Op Income Linio - Op Income IFRS 16 - Op

Income

4Q19 Reported Op

Income

Dec 2018

Net Financial Debt/Ebitda (times)

w/o Banking Operations

Leverage (times)


Debt By Creditor


Debt By Maturity


4.9 yearsDuration

US$ 4,179 MMFinancial Debt w/o Banks

Dec 2019

3.38

3.48

Dec 2018

Dec 2019

0.91

1.04

Leverage

68%

32%

Public bonds Financial institutions

13%

87%

Short term Long term

12

INFORMATION BY SEGMENT

FALABELLA RETAIL

69.6% 14.9% 9.9% -8.3%

Mn CLP; Annual Var (%)

4.4%

SALES

4Q19

SSS 9.5% 36.1% 4.6% -3.5%

Var Local

Currency %18.2% 8.3% -1.8% -8.3%

MAIN

EVENTSWe reached more than 135 stores with corporate

Click and Collect,

Online sales reached 23% of total sales.

82.611 176.206 197.627

420.952

877.396

Argentina Colombia Peru Chile Total

14

59.9% 14.3% -11.5% 12.4% -10.5% -2.3%

SODIMAC


SALES

4Q19

SSS 36.8% 6.6% -0.7% 8.2% -6.1%

Var Local

Currency %5.0% 13.6% 0.3% 8.1% -10.5%

MAIN

EVENTS

Two store openings in Mexico during 4Q19.

36.974

59.314184.465

245.434

500.949

781.702

Argentina Brasil Peru Colombia Chile Total

15

-11.7% 21.0% 5.6%

TOTTUS


SALES

4Q19

SSS -0.9% 2.5%

Var Local

Currency %-11.7% 8.4%

MAIN

EVENTS

3 Hiperbodega Precio Uno and 1 Tottus

opening in Peru

180.188

275.586

455.774

Chile Peru Total

16

FINANCIAL SERVICES


GROSS LOANS

4Q19

-45.9% 17.6% 36.4% 7.9%MAIN

EVENTS

CMR credit card sales reached $2,189,950 Mn

(US$2,925 Mn), driven by sales on third parties

(on-them), which account for ~60% of the

sales with our credit card.

Also, we continue advancing with online credit

card openings, conducting 12% of the

openings through this channel.

60.593

755.438 889.100

3.911.440

Argentina Peru Colombia Chile

17

REAL ESTATE

Mn CLP; EBITDA Margin (%)

EBITDA

PLAZA

43Shopping Centers(Mallplaza+Open)

3,2 MnM2 GLA between shopping centers

and free standing

MAIN

EVENTSOpening of Open Kennedy, Chile and Mallplaza

Buenavista, Colombia.

70.210

45.116

77,6% 62,4%

4Q18 4Q19

18

ANNEX

4Q19 |

Pro Forma Consolidate Statements

excluding IFRS 16

3Q19 IFRS 16 adjustments3Q19

excl. IFRS 16

Non-Banking Business Revenue 2,251,145 2,251,145

Banking Business Revenue 349,362 349,362

Total Revenue 2,600,507 2,600,507

Non- Banking Cost of Goods Sold (1,501,930) (1,501,930)

Banking Cost of Goods Sold (182,501) (182,501)

Gross Profit 916,076 916,076

S,G&A (738,999) (11,965) (750,964)

Operating Income 177,077 (10,159) 165,112

Depreciation and Amortizations 110,835 (26,618) 84,218

EBITDA 287,913 (38,583) 249,300

Net Financial Income / (Costs) (58,614) 14,313 (44,301)

Exchange Rate Difference (2,470) (2,597) (5,067)

Hedge 2,948 2,948

CLP Mn

20

4Q19 |

Pro Forma Statements Per Segment in Chile

excluding IFRS 16CLP Mn

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16

Revenues 420.952 420.952 Gross Profit 144.736 144.736 Gross Margin 34,4% 34,4%SG&A (139.227) (3.016) (142.243) SG&A / Revenues -33,1% -33,8%Operating Profit 5.509 (3.016) 2.493 Operating Margin 1,3% 0,6%Depreciation 19.977 (9.728) 10.248 EBITDA 25.486 (12.744) 12.742 EBITDA Margin 6,1% 3,0%

Department Stores

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16

Revenues 500.949 500.949 Gross Profit 142.536 142.536 Gross Margin 28,5% 28,5%SG&A (142.914) (4.252) (147.166) SG&A / Revenues -28,5% -29,4%Operating Profit (378) (4.252) (4.630) Operating Margin -0,1% -0,9%Depreciation 23.883 (12.650) 11.233 EBITDA 23.505 (16.902) 6.603 EBITDA Margin 6,4% 1,3%

Home Improvement

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16

Revenues 180.188 180.188 Gross Profit 47.453 47.453 Gross Margin 26,3% 26,3%SG&A (51.497) (1.475) (52.972) SG&A / Revenues -28,6% -29,4%Operating Profit (4.044) (1.475) (5.519) Operating Margin -2,2% -3,1%Depreciation 11.209 (5.827) 5.382 EBITDA 7.165 (7.301) (137) EBITDA Margin 4,0% -0,1%

Supermarkets

21

4Q19 |

Pro Forma Statements Per Segment International Operations

excluding IFRS 16CLP Mn

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16


Peru

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16

Revenues 137.060 137.060 Gross Profit 65.685 65.685 Gross Margin 47,9% 47,9%SG&A (56.418) (327) (56.745) SG&A / Revenues -41,2% -41,4%Operating Profit 9.267 (327) 8.940 Operating Margin 6,8% 6,5%Depreciation 3.586 (1.168) 2.418 EBITDA 12.853 (1.495) 11.358 EBITDA Margin 9,4% 8,3%

Argentina

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16


Colombia

4Q19IFRS 16

adjustments

4Q19

excl. IFRS 16

Revenues 59.314 59.314 Gross Profit 17.202 17.202 Gross Margin 29,0% 29,0%SG&A (23.180) (1.170) (24.350) SG&A / Revenues -39,1% -41,1%Operating Profit (5.978) (1.170) (7.148) Operating Margin -10,1% -12,1%Depreciation 1.279 (2.193) (914) EBITDA (4.699) (3.364) (8.063) EBITDA Margin -7,9% -13,6%

Brazil

22

investors.falabella.com

[email protected]

Juan-Luis Carrasco, Head IR

Pablo Muñoz, IR Analyst

Documents

EARNINGS PRESENTATION Fourth Quarter 2019 · This presentation contains forward-looking statements, including statements regarding the intent, belief or current expectations of the