Jan 2014 - Falabella

Corporate
Presentation
Falabella
JAN 2014
Confidential
FALABELLA
CONSOLIDATED
STATEMENTS
BUSINESS UNITS
INVESTMENT
PLAN
US$ 4,417m
Revenues
US$ 5,538m
US$ 1,923m
Stores
Stores
Stores
89
196
80
REAL ESTATE
SUPERMARKETS
Revenues
FINANCIAL SERVICES
Revenues
HOME IMPROVEMENT
DEPARTMENT STORES
FALABELLA AT A GLANCE
Gross Loans
GLA
US$ 5,851m
1,7m sqm
CMR Accounts
Malls / Power
& Shopping
Centers
4.2+ million
18 / 14
Note: Financial data and outlets information as of September 2013 (LTM). FX rates as of 09/30/2013 (504.2 CLP/US$). Includes Sodimac Colombia revenues,
which do not consolidate.
3
MORE THAN 124 YEARS OF HISTORY
2003
2013
Falabella-Sodimac
merger
Sodimac
enters Brazil
1996
1980
Falabella launches CMR,
its own credit card
Falabella IPO in the
Chilean Stock
Exchange
1993
1889
Salvatore Falabella
opens the first
large tailor shop in
Chile
2005
Falabella and CMR
enters Argentina
Falabella and CMR
enter Colombia
1998
Sodimac enters
Argentina
Banco Falabella is
launched in Chile
Sodimac enters
Colombia
2008
MAIN MILESTONES IN OUR HISTORY
1995
1958
Introduction of
home products.
Falabella becomes
a department store
2002
Falabella enters
Peru with the
acquisition of Saga
1990
Falabella develops its
first shopping center
2007
First Tottus in
Peru
1997
JV with The Home
Depot in Chile
Creation of Travel
Agency and
Insurance brokerage
2012
2004
Mall Plaza and Banco
Falabella enters Peru
Sodimac enters Peru
Falabella acquires San
Francisco supermarkets
in Chile
Mall Plaza starts
operations in
Colombia
2011
Banco Falabella
starts operations
in Colombia
4
CORPORATE STRUCTURE
SACI Falabella
94%
Chile
Peru1
Argentina
Colombia
Falabella
100%
Saga Falabella 95%
Falabella
100%
Falabella
65%
Sodimac
100%
Sodimac
100%
Sodimac
100%
Sodimac
49%2
Imperial
60%
Tottus
88%
Tottus
100%
CMR
100%
Banco Falab. 100%
CMR
100%
Banco Falab. 65%
Brazil
Construdecor 50.1%3
Banco Falab. 100%
Rentas F.
100%
Mall Plaza
60%
Open Plaza
100%
Mall Plaza
100%
Avent. Plaza 40%2
20%
1 Through Falabella Perú S.A.A..
2 Not consolidated.
3 Consolidates from July 1st , 2013.
5
REGIONAL FOOTPRINT
42 Department Stores
21 Department Stores
81 Home Improvement
22 Home Improvement
44 Supermarkets
36 Supermarkets
13 Malls
4 Malls
7 Power Centers /
Shopping Centers
7 Power Centers /
Shopping Centers
365
STORES
5
COUNTRIES
15 Department Stores
11 Department Stores
30 Home Improvement
7 Home Improvement
1 Mall
32
MALLS
56 Home Improvement
+97k
EMPLOYEES
Note: Data of number of stores and malls as of September 2013. Includes Sodimac Colombia and Aventura Plaza, which do not consolidated.
6
LATAM EXPOSURE
REVENUES
EBITDA
9M 2013 (LTM)
9M 2013 (LTM)
2006
2006
80%
17%
3%
7
CUSTOMER CENTRIC STRATEGY
Consistent interaction with our customers...
...allows us to evolve and remain close to our
customers
Access to goods
Immediate
Necessities
Lower Risks
through installment
payments
Relationship
with our
Benefits
Customer
Suitable
Deals-ofthe-day
Purchase
frequency
Client
Understanding
...and to anticipate their preferences and
design targeted marketing campaigns
What
does she
buy
When does she
purchase
Where
does she
purchase
What
does she
like
Means of
payment
How much
does she
spend
What
are her
interests
Customer’s DNA
Business Intelligence
...both in traditional and online platforms…
8
CORPORATE GOVERNANCE
MARKET RECOGNITION
Highly experienced leadership
team, with more than 13 years in
average in the Group
Independent director at holding
level and in relevant subsidiaries
Controlling group consisting of 7
families
Most Convincing and Coherent Strategy in
Latam
Highest standard of corporate governance in
Latam
9
SUSTAINABLE BUSINESS
SUSTAINIBILITY REPORT
We prepare a Corporate
Sustainability Report, jointly with the
reports launched by our 5 business
units
HUMAN RESOURCES
CUSTOMERS
Responsible Marketing prompt
complains management customer
service
SUPPLIERS
Great Place To Work Institute: Top
Rankings By Falabella, Sodimac,
Tottus and CMR Chile
COMMUNITY
Commitment to the
communities where we work
Feria Pyme:
Supporting the
develoment of small
business suppliers
ENVIRONMENT
Member of the US Green
Building Council
Leed Certified Stores
10
FALABELLA
CONSOLIDATED
STATEMENTS
BUSINESS UNITS
INVESTMENT
PLAN
3Q & 9M 2013 INCOME STATEMENT
Mill. of USD
Revenues of Non-Banking Operations
Revenues of Banking Operations
TOTAL REVENUES
3Q '12
% Rev.
3Q '13
% Rev.
Var. 13/12
9M '12
% Rev.
9M '13
% Rev.
Var. 13/12
2,603
2,936
12.8%
7,762
8,582
10.6%
202
236
16.6%
594
663
11.6%
2,805
3,172
13.1%
8,356
9,245
10.6%
(1,767)
-67.9%
(1,972)
-67.2%
11.6%
(5,267)
-67.9%
(5,716)
-66.6%
8.5%
(104)
-51.4%
(104)
-44.1%
0.2%
(311)
-52.3%
(307)
-46.3%
-1.2%
GROSS PROFIT
934
33.3%
1,096
34.5%
17.3%
2,779
33.3%
3,221
34.8%
15.9%
SG&A Expenses
(677)
-24.1%
(808)
-25.5%
19.3%
(1,993)
-23.8%
(2,293)
-24.8%
15.1%
257
9.2%
287
9.1%
11.9%
786
9.4%
928
10.0%
18.1%
71
2.5%
84
2.7%
19.7%
207
2.5%
243
2.6%
17.4%
EBITDA
327
11.7%
372
11.7%
13.6%
992
11.9%
1,171
12.7%
18.0%
Non- Operating Profit
(27)
-1.0%
(59)
-1.9%
119.6%
(100)
-1.2%
(137)
-1.5%
36.7%
Profit Before Tax Expenses
230
8.2%
228
7.2%
-0.8%
685
8.2%
791
8.6%
15.4%
COGSof Non-Banking operations
COST of Banking Operations
Operational Income
Depreciation+Amortization
Income Tax
Minority Interest
NET PROFIT / (LOSS)
(112)
(53)
-52.6%
(196)
(176)
-10.2%
1
(23)
-2993.1%
(42)
(68)
60.2%
28.2%
447
118
4.2%
152
4.8%
Note: Financial Statements in CLP translated at FX as of 09/30/2013 (504.2 CLP/US$)
5.4%
547
5.9%
22.3%
12
BALANCE SHEET as of SEP. 2013
US$ million
ASSETS
Non-Banking Operations
Current Assets
Sep-2013
Cash & cash equivalents
Current trade & other receivables
Inventories
Others
290
8
1,690
2,638
Total Current Assets
4,627
Total Non-Current Assets
Total Non-Banking Operations Assets
Sep-2013
Other current financial liabilities
Current trade & otherpayables
Others
879
1,341
350
Total Current Liabilities
2,570
Non-Current Liabilities
Non-Current Assets
Non-Current trade & other receivables
Goodwill
PP&E
Others
US$ million
EQUITY & TOTAL LIABILITIES
Non-Banking Operations
Current Liabilities
309
614
3,274
4,407
8,603
13,230
Other non-current financial laibilities
Others
4
3,971
Total Non-Current Liabilities
Total Non-Banking Oper. Liabilties
3,975
6,545
Total Liabilities from Banking Oper.
4,128
TOTAL LIABILITIES
10,673
Loans and accounts receivable from clients
3,514
Others
1,414
Total Assets from Banking Operations
4,928
Shareholders' Equity
7,485
TOTAL ASSETS
18,157
TOTAL EQUITY & LIABILITIES
18,157
Note: Financial Statements in CLP translated at FX as of 09/30/2013 (504.2 CLP/US$)
13
FINANCIAL SITUATION
LEVERAGE (w/o Banking Operations)
NET FINANCIAL DEBT/EBITDA (w/o Banking Oper.)
(times)
(times)
DEBT BY TYPE
(w/o Banking Oper.)
Financial Debt (w/o
Banks):
US$ 4,256 MM
DEBT BY MATURITY
(w/o Banking Oper.)
Duration:
5.53
years
14
2013 OPENINGS
In 2013, the Falabella Group reached 382 stores in the region, adding 86 new stores to its
operation during the year:
30 new stores in Chile, Peru and Colombia
56 stores through the acquisition of Construdecor in Brazil
Moreover, the Group added 5 shopping centers in 2013, reaching to a total of 36 malls in the
region.
New Stores:
Falabella
Chile
Peru
Colombia
Ovalle
Egaña
Lima Norte
Cañete
Ica
Pucallpa
Bucaramanga
Santa Cruz
Ovalle
Ate
SJ Lurigancho
Cañete
Huacho
Sullana
Pucallpa
Armenia
Rionegro
Chia
Vitacura
Egaña
El Trébol
Ovalle
Quilpué
Cañete
Canta Callao
Chiclayo
Pacasmayo
Arequipa Parra
Pucallpa
Sullana
Sodimac
Tottus
New Malls:
Brazil
Chile
Peru
Mall Plaza Iquique
Open Plaza Pucallpa
Mall Plaza Egaña
Open Plaza Rancagua
Open Plaza Ovalle
+ 56
Dicico
stores
15
FALABELLA
CONSOLIDATED
STATEMENTS
BUSINESS
UNITS
INVESTMENT
PLAN
DEPARTMENT STORES
Business Overview
89 stores operating in Chile, Peru,
Colombia and Argentina
Main categories: apparel, home
electronics and home décor
Diverse portfolio of own brands, second
generation and exclusive brands in
addition to international brands
Leading online retailer
Revenues 3Q 2013 (US$ m) SSS 3Q 2013
+9.7%
+9.7%
+8.2%
+7.3%
+1.5%
+22.4%
+32.0%
+0.6%
-7.4%
Revenues 3Q 2013 LTM (US$ m)
Regional Footprint
15 Stores
21 Stores
42 Stores
Sales / m2 3Q 2013 LTM1 (US$)
11 Stores
Note: Figures in US$ converted using the September 30, 2013 exchange rate (504.2 CLP/US$).
1. Sales LTM divided by average m2
17
HOME IMPROVEMENT
Business Overview
196 stores in Chile, Peru, Colombia,
Argentina, and Brazil
Main categories: construction materials
and home improvement products
Five formats: Homecenter, Sodimac
Constructor, Imperial, Homy and Dicico
Expertise in direct selling to construction
sector and large companies
Strong online strategy
Revenues 3Q 2013 (US$ m) SSS 3Q 2013
+18.8%
+8.4%
+6.4%
+18.1%
+8.7%
+21.6%
+21.8%
+11.2%
+2.2%
+8.5%
Revenues 3Q 2013 LTM (US$ m)
Regional Footprint
30 Stores
22 Stores
81 Stores
Sales / m2 3Q 2013 LTM1 (US$)
7 Stores
56 Stores
Note: Figures in US$ converted using the September 30, 2013 exchange rate (504.2 CLP/US$).
1. Sales LTM divided by average m2. Does not include Brazil as information for 2012 is not available.
18
SUPERMARKET
Business Overview
Started operations in 2002 in Peru under
Tottus brand and entered Chilean
market in 2004 with the acquisition of
San Francisco
Operates 80 stores in Chile and Peru,
with two main formats: hypermarkets
and supermarkets
Increased penetration of private labels
Developed online platform
Revenues 3Q 2013 (US$ m) SSS 3Q 2013
+11.7%
+14.2%
+6.7%
+8.8%
+2.7%
Revenues 3Q 2013 LTM (US$ m)
Regional Footprint
36 Stores
44 Stores
Note: Figures in US$ converted using the September 30, 2013 exchange rate (504.2 CLP/US$).
1. Sales LTM divided by average m2
Sales / m2 3Q 2013 LTM1 (US$)
19
FINANCIAL SERVICES
Business Overview
Gross Loan Portfolio (3Q2013 vs. 3Q2012)
Banking Business1:
Banking services in Chile, Peru and
Colombia
Offers consumer financing, credit cards,
savings and checking accounts, and
mortgage loans
CMR:
Operations in Chile and Argentina
Provides credit through installment payment
plan options and cash advances
Total 4.2 million CMR accounts regionally
Total
+4.3%
+2.9%
+7.9%
+23.9%
1. Consolidates our CMR credit card operations in Peru and Colombia
Regional Footprint
+1.2%
Bank Branches: 47
CMR Accounts: 0.7 million
Loan Loss Provision 2 (%, 3Q 2013)
Bank Branches: 52
CMR Accounts: 0.9 million
Bank Branches: 85
CMR Accounts: 2.0 million
Bank Branches: 0
CMR Accounts: 0.5 million
Note: Figures in US$ converted using the September 30, 2013 exchange rate (504.2 CLP/US$).
2
Per local regulation (not comparable across the countries) 20
REAL ESTATE
Business Overview
Largest operator in Chile and Peru, and one of the leaders in Latin America:
Mall Plaza: Operates large shopping malls in Chile , Peru (through Aventura Plaza)
and Colombia.
Rentas Falabella and Open Plaza: Operates small shopping centers with 2 or 3 of our
retail formats as anchor stores, as well as other third-party minor stores.
Main Highlights
Stores revenues of
Mall Plaza shopping
malls grew by 13.1%
in the quarter.
Opening of Mall Plaza
Egaña by the end of
2013, being the first
sustainable mall in
Chile.
Free Standing Stores
(Falabella, Sodimac,
Tottus)1
1
Owned by the company.
666
684
21
FALABELLA
CONSOLIDATED
STATEMENTS
BUSINESS UNITS
INVESTMENT
PLAN
INVESTMENT PLAN 2014-2017
# Stores & Malls
15
MALLS
157
STORES
Investment (US$ mm)
US$4.1bn
23%
63%
14%
23
CONTACT INFORMATION
Jordi Gaju N.
Alejandro González D.
Chief Development Officer
Chief Financial Officer
(jgaju@falabella.cl)
(alejgonzalez@falabella.cl)
Phone: +56 2 2380 2012
Phone: +56 2 2380 2205
Lucrecia Fittipaldi
Catalina Escaffi
Corporate Development Manager / Head of IR
IR / Development Associate
(lfittipaldi@falabella.cl)
(cescaffi@falabella.cl)
Phone: +56 2 2380 2012
Phone: +56 2 2380 2012
24
IMPORTANT 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.
25
Corporate
Presentation
Falabella
JAN 2014
Confidential