Earnings Presentation Third Quarter N o v e m b e r 2018
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 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 fromthose indicated by such forward-looking statements.
3 RD QUARTER 2018 MAIN EVENTS A c q u i s i t i o n o f 1 0 0 % o f L i n i o f o r U S $ 1 3 8 m i l l i o n I n c r e a s e d o w n e r s h i p i n D i c i c o t o 1 0 0 %. U S $ 6 0 m i l l i o n d i s b u r s e m e n t C a p i t a l i n c r e a s e o f 8 4. 3 m i l l i o n s h a r e s S e l e c t e d t o i n t e g r a t e t h e D J S I W o r l d 3
3 RD QUARTER Strategic Priorities Delivery O W N B R A N D S L O G I S T I C S C A P A B I L I T E S F I N A N C I N G & E - P A Y M E N T S C h i l e : O p e n i n g o f t w o s p e c i a l i s t s t o r e s : A m e r i c a n i n o and S y b i l l a P e r u : T o t t u s V e c i n o, f o c u s e d o n o w n b r a n d s, l o w o p e r a t i n g c o s t s a n d p r o x i m i t y C h i l e : F a l a b e l l a s n e w D C d r y r u n L a s t M i l e : P e r u : t h e C & C n e t w o r k w a s e x p a n d e d t o 8 T o t t u s s u p e r m a r k e t s 8 n e w s t o r e s i n t h e r e g i o n a n d o n e M a l l p l a z a s h o p p i n g c e n t e r i n C o l o m b i a C h i l e : l a u n c h e d o f d i g i t a l g i f t c a r d t h a t a l l o w s t o r e d e e m p o i n t s f r o m o u r l o y a l t y p r o g r a m a n d p a y i n s t o r e w i t h y o u r m o b i l e. N e w o n l i n e f u n c t i o n a l i t i e s t h a t e n a b l e s t o : I n c r e a s e t h e c r e d i t c a r d l i m i t a t t h e c h e c k - o u t p r o c e s s i n F a l a b e l l a. c o m A c q u i r e a c o n s u m e r l o a n t h r o u g h t h e m o b i l e a p p 4
INCOME STATEMENT (Million of CLP) 3Q17 % Rev. 3Q18 % Rev. Var % Revenues of Non-Banking Operations 1,937,199 2,004,611 3.5% Revenues of Banking Operations 178,446 192,986 0.1% Total Revenues 2,115,645 100.0% 2,197,597 100.0% 3.9% COGS of Non-Banking Operations (1,269,009) -65.5% (1,317,193) -65.7% 3.8% COGS of Banking Operations (80,015) -44.8% (94,983) -49.2% 18.7% Gross Profit 766,621 36.2% 785,421 35.7% 2.5% SG&A Expenses (590,308) -27.9% (617,707) -28.1% 4.6% Operational Income 176,313 8.3% 167,714 7.6% -4.9% Depreciation + Amortization 72,070 3.4% 82,669 3.8% 14.7% EBITDA 248,383 11.7% 250,383 11.4% 0.8% Other Income / (Expenses) (1,411) 1,351-195.7% Net Financial Income / (Cost) (46,798) (38,439) -17.9% Profit / (Loss) in Associates 2,696 1,515-43.8% Exchange Rate Differences 1,918 (11,111) -679.3% Non-Operating Profit (43,595) -2.1% (46,684) -2.1% 7.1% Profit Before Tax Expenses 132,718 6.3% 121,030 5.5% -8.8% Income Tax (36,026) (31,200) -13.4% Minority Interest (11,350) (13,046) 14.9% Net Profit / (Loss) 85,342 4.0% 76,784 3.5% -10.0% Online Revenue (retail only) (*) 100,134 5.9% 122,238 7.0% 22.1% (*) Online Revenue includes revenue generated through online channels for Department Stores in Chile, Peru, Argentina & Colombia; Home Improvement in Chile, Peru, Argentina, Brazil & Uruguay; and Supermarkets in Chile & Peru. % Rev. estimated over the total revenue of the same businesses. 5
SALES AND GROSS MARGIN S A L E S N O N - B A N K I N G O P E R A T I O N S Million CLP; Annual Var (%) E - C O M M E R C E S A L E S Bn CLP; Annual Var (%) 1.948 2.010 1.937 5.895 2.010 2.107 2.005 6.121 86 123 100 309 110 163 122 395 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 2017 2018 G R O S S P R O F I T N O N - B A N K I N G O P E R A T I O N S Bn CLP; Annual Var (%) 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 2017 2018 G R O S S P R O F I T B A N K I N G O P E R A T I O N S Bn CLP; Annual Var (%) 678 718 668 2.065 702 746 687 2.135 93 95 98 286 102 105 98 304 6 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 2017 2018 2017 2018
N E T P R O F I T B R I D G E 2017 vs. 2018 Million CLP 100000 95000-4.948 90000 11.733-4.785 85000-10.599 80000 75000 85.342-3.089 3.130 70000 76.784 65000 60000 3Q17 Net Income Normalized EBITDA IFRS 9 Linio EBITDA Depreciations Non-Operating Profit Tax & Minority Interest 3Q18 Net Income annual variations 7
LEVERAGE N e t F i n a n c i a l D e b t / E b i t d a ( t i m e s ) w / o B a n k i n g O p e r a t i o n s D e b t B y C r e d i t o r w / o B a n k i n g O p e r a t i o n s Sep 2018 Sep 2017 3.53 3.36 52% 48% 4.4 years Duration Public Bonds Financial Institutions L e v e r a g e ( t i m e s ) w / o B a n k i n g O p e r a t i o n s D e b t B y M a t u r i t y w / o B a n k i n g O p e r a t i o n s Sep 2018 Sep 2017 1.11 1.07 33% 67% US$ 6,113 MM Financial Debt w/o Banks 1 Short Term Long Term 8
FALABELLA RETAIL MAIN EVENTS SALES 3Q18 1 O p e n i n g i n C o l o m b i a Mn CLP; Annual Var (%) 21.6% -25.5% 5.6% -2.7% -0.8% 623,589 334,342 86,603 55,720 146,924 Colombia Argentina Perú Chile Total SSS 15.0% 30.7% 3.8% -7.2% Var Local Currency % 18.4% 24.5% 4.2% -2.7% 9
SODIMAC MAIN EVENTS SALES 3Q18 1 st s t o r e i n M e x i c o 2 O p e n i n g s i n C o l o m b i a 2 O p e n i n g s i n C h i l e 1 O p e n i n g i n A r g e n t i n a Mn CLP; Annual Var (%) -16.5% 9.5% -25.6% 5.0% 5.7% 2.1% 728,715 495,376 204,079 158,883 44,316 30,140 Brasil Colombia Argentina Perú Chile Total SSS -2.0% 3.8% 26.4% 2.9% 1.9% Var Local Currency % 4.4% 6.5% 30.9% 3.2% 5.7% 10
TOTTUS MAIN EVENTS SALES 3Q18 2 H i p e r b o d e g a P r e c i o U n o o p e n i n g s : I c a, & H u a c h o Mn CLP; Annual Var (%) 13.8% 6.3% 9.9% 385,761 189,438 196,323 Perú Chile Total SSS 6.1% 2.6% Var Local Currency % 12.0% 6.3% 11
LINIO MAIN EVENTS NMV 1 C o n s o l i d a t i o n o f L i n i o s i n c e A u g u s t 2 nd S o d i m a c a n d F a l a b e l l a s t a r t e d s e l l i n g i n L i n i o L a u n c h e d o f c o m m e r c i a l a c t i v i t i e s p a r t n e r e d w i t h C M R Mn CLP; Annual Var (%) 6.5% -0.3% 19,748 21,040 60,440 60,286 3Q17 3Q18 9M17 9M18 1 NMV corresponds to Net Merchandise Value. A measure of the total sum in Chilean pesos of all transactions made through Linio, net of VAT 12
FALABELLA FINANCIERO MAIN EVENTS GROSS LOANS 3Q18 A F T E R T H E P E R I O D I n t e g r a t i o n o f B a n c o F a l a b e l l a a n d C M R g o t r e g u l a t o r y a p p r o v a l. Mn CLP; Annual Var (%) -39.2% 38.3% -11.4% 9.5% 7.3% 4,780,991 3,467,412 101,194 602,561 609,824 Argentina Colombia Peru Chile Total 13
REAL ESTATE MAIN EVENTS EBITDA PLAZA, M a l l p l a z a b e g a n t r a d i n g i t s s h a r e s o n t h e S a n t i a g o S t o c k E x c h a n g e Mn CLP; EBITDA Margin (%) 161,032 181,354 N e w s h o p p i n g c e n t e r i n M a n i z a l e s, C o l o m b i a w i t h 4 0 k m 2 o f G L A 54,017 61,993 78.6% 80.6% 79.5% 80.9% 3Q17 3Q18 9M17 9M18 43 Shopping Centers 3,19 Mn M2 GLA between shopping centers and free standing 14
investors.falabella.com inversionistas@falabella.cl Andrea González, Head IR Constanza Saver, IR Analyst Pablo Muñoz, IR Analyst