Santander Conference Acapulco JAN 08
Consolidated Summary
FALABELLA SNAPSHOT Chile based integrated retailer involved in the department store business, home improvement, supermarket and financial services. Key information and indicators (Dec-07) Operations in Chile, Perú, Argentina and Colombia 63 Department Sores, 84 Homecenters, 29 Super/Hypermarkets 1,208,824 m2 Selling space 4.7 million active credit card accounts CMR 53,000 employees Falabella Financials LTM Sep07 USD MM$ (1) Falabella G Y Y Revenues 5.528 17,0% EBITDA 726 24,1% Net Income 429 10,6% Market Cap.(2) 11.642 (1) Real Ch$ @ Sep30, 2007, converted @ year-end exhange rate 496.89 Ch$/US$ (2) Stock Price 31/Dec/2007: Falabella Ch$ 2,420, D&S Ch$ 260.02
HISTORY OF FALABELLA -Falabella initiates US$MM 2,500 investment plan 2008-2011 Salvatore Falabella opens the first large tailor shop in Chile -Mall Plaza initiates Peru operations 1889 Alberto Solari joins the Company. 1937 Incorporation of home products. Falabella becomes a department store. 1958 1980 Falabella initiates development of shopping centers with the opening of Mall Plaza Vespucio Falabella creates CMR, its own credit card D&S merger agreement Falabella acquires supermarket chain San Francisco in Chile 2006 2004 Falabella enters the Colombian market: -Increases stake in Sodimac. -Launches CMR credit card. 2005 Entrance to the Hypermarket industry in Peru with its first Tottus 2002 2003 Falabella merger with Sodimac Alliances with ENTEL and Copec are created for the use of CMR card. 1990 2001 2000 1993 First opening in Argentina, city of Mendoza. 2007 Announcement of Falabella -Sodimac announces entrance to Argentina Creation of Travel Agency and Insurance brokerage. 1995 Joint venture agreement with The Home Depot 1999 First department store in Buenos 1997 Falabella enters Perú by acquiring department store Saga 100% of The Home Depot Chile is purchased 1996 Falabella IPO in the Chilean stock exchange 1998 Aires is opened. 20% of FASA drugstore is purchased Falabella Bank is created.
CORPORATE STRUCTURE AS OF DECEMBER 2007 Real Estate Chile Falabella Stores 39 Sales Area 206,710 M 2 Argentina Falabella Stores 7 Sales Area 42,295 M 2 Perú Saga Falabella Stores 14 Sales Area 80.189 M 2 Colombia Falabella Stores 3 Sales Area 29,268 M 2 Chile Sodimac + Imperial Stores 55+7 Sales Area 489,414 M 2 Perú Sodimac Stores 7 Sales Area 54,073 M 2 Colombia Sodimac Stores 15 Sales Area 159,446 M 2 (49% ownership) Chile San Fco - Tottus Stores 21 Sales Area 85,810 M 2 Perú Tottus Stores 8 Sales Area 61,619 M 2 CMR Credit Card N of Active Accounts Chile 2.7 mm Argentina 565 m Perú > 1 mm Colombia 308 m Travel Agency Branches +34 N Pass. 200.000/year Insurance Brokerage N Accounts +4MM Bank ROE 2006 34,6% Market Share Cons.Credit 5,2% N Sav.Acc. 575.000 Mall Plaza Chile: 8 malls Lease Ar. +590,093 M 2 Perú: 1 mall Lease Ar. 78,255 M 2 Sociedad de Rentas 54 stores Lease Ar. 359.000 M 2 Other Industrial Mavesa 100% own. Italmod 50% own. FASA 20% own.
MAIN EVENTS 2007 ANNOUNCEMENT OF FALABELLA D&S MERGER AGREEMENT OPENING OF 32 STORES DURING 2007. (16 IN 4Q07) ACQUISITION OF CONTROLLING STAKE IN MALL PLAZA MALL PLAZA BEGINS INTERNATIONAL EXPANSION THROUGH THE CONSTRUCTION OF FIRST MALL IN PERU ACQUISITION OF 60% OF INVERSIONES IMPERIAL (7 STORES) BANCO FALABELLA INAUGURATED IN PERU CAPITAL INCREASE FOR STOCK OPTIONS NYSE LISTING PROCESS OTHER RECENT EVENTS MMUS$ 1.600 INVESMENT PLAN FOR 2008-2011 (+ MMUS$ 900 IN MALL PLAZA)
CONSOLIDATED INCOME STATEMENT 9M 2007 (MMUS$) 9M 2007 % Revenues 9M 2006 % Revenues Var. 07/06 Revenues 4.000 3.415 17,1% COGS (less) (2.821) -70,5% (2.439) -71,4% 15,7% GROSS MARGIN 1.179 29,5% 976 28,6% 20,8% SG&A (less) (760) -19,0% (651) -19,1% 16,8% OPERATING INCOME 419 10,5% 325 9,5% 29,0% Depreciation + Amortization (less) (90) -2,2% (73) -2,1% 22,6% EBITDA 509 12,7% 398 11,7% 27,8% NON - OPERATING INCOME (66) -1,6% (19) -0,6% 246,4% PROFIT BEFORE TAX & EXT. ITEMS 353 8,8% 306 9,0% 15,6% INCOME TAX (63) (45) 39,3% MINORITY INTEREST (22) (4) 481,8% PROFIT (LOSS) bef amort of NG 268 257 4,4% NET PROFIT (LOSS) 268 6,7% 257 7,5% 4,4% Adjusted EBITDA 552 13,8% 463 13,6% 19,3%
REVENUES (MMUS$) CAGR = 23% 3.495 4.145 4.684 Var07/06= 17% 3.415 4.000 1.912 2.370 2002 2003 2004 2005 2006 9M06 9M07 (*) Real Ch$ @ Sep 30, 2007, converted @ exchange rate 511.23 Ch$/US$
NET INCOME MMUS$ & % REVENUES 8,2% 9,3% 7,8% 8,2% 8,7% 7,5% 6,7% 405 338 273 157 219 257 268 2002 2003 2004 2005 2006 9M06 9M07 (*) Real Ch$ @ Sep 30, 2007, converted @ exchange rate 511.23 Ch$/US$
OPERATING INCOME 9M 2007 9M 07 Chile; 83,1% Peru; 15,9% Argentina; 1,0% Total 9M 07= MMUS$419
CONSOLIDATED INDICATORS Ebitda (MMUS$)* & % Revenues 14,7% 13,6% 12,1% 12,8% 11,6% 11,7% 12,7% 531 545 423 509 281 323 398 2002 2003 2004 2005 2006 9M06 9M07 Liabilities /Equity ROE: Net Inc./Equity (%) 14,1% 13,0% 11,3% 14,7% 15,8% 13,9% 13,4% 1,05 1,06 1,31 0,91 0,98 1,01 2002 2003 2004 2005 2006 9M06 9M07 2002 2003 2004 2005 2006 9M07
FALABELLA STOCK EVOLUTION Market Cap. Stock Price (Ch$) US$MM 4,214 1,048 US$MM 5,783 US$MM 6,574 1,350 1,410 US$MM 11,642 2,420 US$MM 8,393 1,870 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 CAGR: 23.3% *Converted at each period s year-end exchange rate
BUSINESS UNITS
FALABELLA Department Stores Revenues (MMUS$) Chile 1,412 1,321 Var: 6.9% Perú 390 321 Var: 21.4% Argentina 237 196 Var: 20.5% Colombia 0 47 LTM Sep06 LTM Sep07
FALABELLA Department Stores* Chile New stores 2007: 4 Total stores: 39 (206,710 M 2 ) Openings 2008: 3 Openings 2008-2011: 14 International New stores 2007: 6 Total stores: 24 (151,752 M 2 ) 14 Peru, 7 Argentina, 3 Colombia Openings 2008: 5 Openings 2008-2011: 23 (*) Projected information subject to changes
SODIMAC Home Improvement Revenues (MMUS$) Chile 1,527 1,776 Var: 16.3% Colombia 334 478 Var: 43.3% Perú 64 102 Var: 58.7% LTM Sep06 LTM Sep07
SODIMAC Home Improvement* Chile New stores 2007: 4 Addition of 7 Imperial Stores Total stores: 62 (489,414 M2) Openings 2008: 4 Openings 2008-2011: 31 (*) Projected information subject to changes International New stores 2007: 9 Total stores: 22(213,519 M2) 7 Peru, 15 Colombia Openings 2008: 16 Openings 2008-2011: 55
TOTTUS SN FCO Supermarkets Revenues (MMUS$) Chile 341 462 Var: 35.4% Perú 157 187 Var: 19.0% LTM Sep06 LTM Sep07
TOTTUS SAN FRANCISCO Supermarkets* Chile New stores 2007: 5 Total stores: 21 (85,810 M 2 ) Peru New stores 2007: 4 Total stores : 8 (61,619 M 2 ) Openings 2008: 9 Openings 2008-2011: 31 (*) Projected information subject to changes
OTHER RETAIL OPERATING INDICATORS Same Store Sales (Real %) 9M 2007 Department Stores - Chile 3,1% Home Improvement - Chile 6,4% Supermarkets - Chile -0,1% Department Stores - Perú 10,4% Hypermarkets - Peru 1,1% Home Improvement - Peru 10,0% Department Stores - Argentina 9,8% Sales Area Growth (%) Sep-07 Sales Area (m2) Sep-06 Sales Area (m2) Growth % Department Stores - Chile 202.500 183.622 10,3% Home Improvement - Chile 484.033 409.421 18,2% Hypermarkets - Chile 80.853 53.369 51,5% Department Stores - Perú 67.781 59.890 13,2% Hypermarkets - Perú 30.335 30.335 0% Home Improvement - Peru 38.757 26.971 43,7% Department Stores - Argentina 39.817 39.817 0% Department Stores - Colombia 18.865 - - Home Improvement - Colombia 143.207 106.535 34,4%
Financial Retail Indicators Total Gross Loans (MMUS$) Total Gross Loans Composition (Sep07) 877 1,177 1,542 2,046 2,454 2,742 CMR Chile 47% Banco Falabella Chile 36% 2002 2003 2004 2005 2006 9M 07 CMR Colombia CMR Perú 3% CMR Argentina 2% 12% Total Active Accounts per Country (MM) 0.3 0.2 0.6 0.5 0.4 0.4 0.9 1.0 1.1 0.3 0.3 0.8 0.7 0.6 1.8 2.0 2.3 2.6 2.6 2.7 2002 2003 2004 2005 2006 9M 07 Chile Peru Argentina Colombia
Financial Retail Efficiency 60% 50% 40% 30% 20% Operating Ratio as of September 2007 (Expenses/Gross Margin) 49,0% 30,7% 34,3% 19,3% 10% 0% Financial System Chile Falabella Bank Peru Falabella Bank Chile CMR Chile Provision as of September 2007 (%) 6,4% 4,6% 4,2% 4,5% Financial System Chile Falabella Bank Perú Falabella Bank Chile CMR Chile
MALL PLAZA* Chile Existing Malls 2007: 8 Total Leasing Space: 560,093 M 2 Openings 2008: 2 Projects 2008-2011: 7 Peru New Malls 2007 Mall Plaza Trujillo Total Leasing Space: 78,255 M 2 Openings 2008: 1 Projects 2008-2011: 5 (*) Projected information subject to changes
Growth Plan Growth Plan
INVESTMENT PLAN (US$ MM)* Malls 804 845 Stores 361 304 601 484 183 107 325 377 442 541 418 82 243 2007 2008 2009 2010 2011 NEXT 4 YEARS: OVER US$MM 1,600 IN STORES PLUS US$MM 900 IN MALLS (*) Information subject to changes. Includes Sodimac Colombia Also, during 2007, US$MM 140 was invested in the acquisition of additional shares of Mall Plaza and a 60% equity stake in Imperial.
INVESTMENT IN STORES (US$ MM)* 541 377 442 418 243 2007 2008 2009 2010 2011 OVER US$MM 1,600 IN NEXT 4 YEARS (*) Information subject to changes. Includes Sodimac Colombia
STORE OPENINGS * Total N Stores 176 1 212 256 294 323 44 36 38 141 28 29 323 2007 2008 2009 2010 2011 147 NET STORE OPENINGS IN NEXT 4 YEARS (1) Includes 7 Imperial Stores acquired in May 2007. (*) Information subject to changes. Includes Sodimac Colombia
SELLING SPACE* 1,006,000 [M 2 ] 203 261 360 284 210 2,324,000 [M 2 ] 2007 2008 2009 2010 2011 SELLING SPACE X 2 IN NEXT 4 YEARS (*) Information subject to changes. Includes Sodimac Colombia
STORE SUMMARY 2007 2011** N of Stores 2007 TOTAL Falabella 63 Sodimac 84 Tottus 29 TOTAL 176 N of Stores 2011 TOTAL Falabella 100 Sodimac 178 *** Tottus 45 * TOTAL 323 (*) N of stores 2011 = N of stores 2007 + Openings Closing of stores (**) Information subject to changes. Includes Sodimac Colombia. (***) Does not include investment plan to be developed with D&S.
LEADING REGIONAL EXPANSION COLOMBIA Falabella Sodimac Financial Retail PERU Falabella Sodimac Tottus Financial Retail Inmobiliario CHILE Falabella Sodimac Tottus Financial Retail Real State ARGENTINA Falabella Financial Retail Sodimac
CONTACT INFORMATION Juan Guillermo Espinosa (jespinosa@falabella.cl) Tomás Gazmuri (tgazmuri@falabella.cl) Phone: 56-2-380 2007 Fax: 56-2-380 2008
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 company s financial statements, and the fact that actual results could differ materially from those indicated by such forward-looking statements.