Earnings Presentation Q42014 February, 2015 This material was - PowerPoint PPT Presentation

Earnings Presentation Q4’2014 February, 2015

This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities. This presentation may include forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current beliefs and expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and assumptions, including, among other things, general economic, political and business conditions, both in Peru and in Latin America as a whole. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are intended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Therefore, our actual results could differ substantially from those anticipated in our forward-looking statements. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. We and our affiliates, agents, directors, employees and advisors accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information in this material. 2

AGENDA 01 2014 HIGHLIGHTS 02 Q4’14 RESULTS BY SEGMENT 03 WHAT WE ARE DOING 04 WHAT TO EXPECT IN 2015-2017

01 2014 HIGHLIGHTS

01 2014 Consolidated Highlights 2013 Consolidated Results Million Soles (S/. mm) Million Soles (S/. mm) Full Year 2014 Highlights Revenues  Double digit growth in Revenues, Adj. EBITDA, and Net Income vs. 2013 6,147 5,322  New corporate structure allowing its segments to have independent capital structures and more transparency  Refinanced debt to reduce cost of debt (US$ 12 mm in annual savings from lower interest expenses) 1,738 1,492  Increase in fair value of investment properties of S/. 138.4 mm and exchange loss of S/.114.5 mm  Increase in EPS from S/. 0.6 to S/. 1.1 Q4'13 Q4'14 2013 2014 Net Income Adj. EBITDA 113 604 475 66 63 202 160 21 Q4'13 Q4'14 2013 2014 Q4'13 Q4'14 2013 2014 5 Margin 10.7% 11.6% 8.9% 9.8% Margin 4.4% 1.2% 1.2% 1.8%

01 Financial Results by Segment Million Soles (S/. mm) InRetail Consumer InRetail Shopping Malls Supermarkets Pharmacies Revenues Revenues 349 5,833 5,142 36% 215 35% 110 1,633 1,439 64% 65% 63 33% 34% 67% 66% Q4'13 Q4'14 2013 2014 Q4'13 Q4'14 2013 2014 Adj. EBITDA Adj. EBITDA 415 364 202 44% 42% 115 133 123 68 56% 36% 58% 34% 38 64% 66% Q4'13 Q4'14 2013 2014 Q4'13 Q4'14 2013 2014 Net Rental Margin 82.9% 6 Margin 82.4% 75.9% 80.2% 8.5% 8.2% 7.1% 7.1%

01 InRetail Peru 2014 Highlights • Opened 28k sqm of sales area (+8.5% net of closings) • Opened 6 supermarkets (3 in Lima / 3 in provinces) • Expanded 5 supermarkets SUPERMARKETS • Refurbished 11 Plaza Vea stores • Closed 3 Economax stores • SSS growth of 4.4% • Captured efficiencies in SG&A due to multiple initiatives launched • Launched “Vea Club” to increase customer knowledge and enhance promotional campaigns • Successfuly integrated dry-food and non-food warehouses • Completed upgrade of cash registers to NCR platform, improving customers ’ experience at point of sale Ranked 8 th in GPTW Ranking • 7

01 InRetail Peru 2014 Highlights • Opened 124 pharmacies (37 in Lima / 87 in provinces); 12 pharmacies closed • SSS growth of 8.5% PHARMACIES • Increased penetration of high margin products (+2.7pp) • Reduced inventory in 32 days (85 days as of December 2014), freeing up cash • Sold old distribution center for S/. 12.9 MM, generating an extraordinary income of S/. 6.8 MM 8

01 InRetail Peru 2014 Highlights • Inaugurated Real Plaza Salaverry in May 2014 (+73k sqm of GLA) • Acquired of Real Plaza Centro Cívico in August 2014 SHOPPING MALLS (+41k sqm of GLA) for S/. 190 MM, 7X EBITDA, and initiated expansion of 8k sqm for a department store • Expanded 41k sqm of GLA • Acquired Puruchuco’s landplot for S/. 100 MM for the development of a new shopping mall • Increases in mark-to-market of S/. 138 MM in 2014 mainly as a result of new malls in operation and lower cost of debt 9

02 02 Q4 ´ 14 RESULTS BY Q4 ´ 14 RESULTS BY SEGMENT SEGMENT

02 Revenues Growth of 16.5% vs Q4’13 2013 Consolidated Results Million Soles (S/. mm) Million Soles (S/. mm) Revenues Million S/. Var % Var % Million S/. Q4'14 2014 Q4'13 2013 InRetail Consumer 1,633 13.5% 5,833 13.4% Supermarkets 1,094 14.8% 3,757 12.9% Pharmacies 541 11.0% 2,086 14.4% InRetail Shopping Malls 110 73.0% 349 62.7% Total Revenues 1,738 16.5% 6,147 15.5% • +4.9% SSS vs. Q4’13 (+4.4% SSS 2014) • 2 new stores, 3 expansions and one Economax store closed in Q4’14 (+8k sqm); 6 new stores, 5 expansions and 3 Economax stores closed in 2014 Supermarkets (+21k sqm, +8.5%), total 101 (269,718 sqm) • Aggressive and innovative promotional campaigns in Q4’14 • +5.9% SSS vs. Q4’14 (+8.5% SSS 2014) 2014 Revenues Breakdown • 50 pharmacies added to the network in Q4’14 , 112 in 2014 (+15.4%), total 837 stores Pharmacies Shopping Malls • Intensive competitive environment and stock liquidation to reduce inventory 5.6% impacted our sales per ticket, partially compensated by an increased in SSS transactions Pharmacies 33.7% • Expansion of 3 malls in Q4 ’ 14 (+11,120 sqm); opening of Real Plaza Supermarkets Salaverry and acquistion of Real Plaza Centro Cívico in 2014 (+154,880 60.7% Shopping Malls sqm; +38.9%); total 553,431sqm (607,120 sqm including third party’s properties) 11

02 Quarterly Openings and SSS by Segment Openings Same Store Sales Supermarkets Supermarkets 270 5.2% 4.9% 4.8% 261 Sales Area (‘000 sqm) 253 249 249 228 227 227 2.6% 2.4% 2.1% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 N ° Stores 88 88 90 98 98 98 100 101 -0.7% Pharmacies 837 -2.1% N ° Stores 787 754 731 725 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 675 636 610 10.8% Pharmacies 9.3% 8.2% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 6.9% 553 5.9% Shopping Malls 542 499 GLA (‘000 sqm) 425 4.0% 399 336 319 297 0.4% -1.1% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 12 N ° Malls 13 13 13 15 15 16 17 17

02 Adjusted EBITDA Growth of 26.3% vs Q4’13 Million Soles (S/. mm) Adj. EBITDA Million S/. Var % Var % Q4'14 % Rev 2014 % Rev Million S/. Q4'13 2013 InRetail Consumer 133 8.2% 8.7% 415 7.1% 13.9% Supermarkets 85 7.8% 4.6% 232 6.2% 10.0% Pharmacies 49 9.0% 17.6% 185 8.9% 19.5% InRetail Shopping Malls 68 62.0% 77.8% 202 57.8% 75.5% Total Adj. EBITDA 202 11.6% 26.3% 604 9.8% 27.0% • +4.6% growth vs. Q4’13 ; +10.0% growth vs. 2013 • EBITDA Mg. 7.8% vs. 8.5% in Q4’13 ; 6.2% in 2014 vs. 6.3% in 2013 Supermarkets • Lower gross margin in Q4’14 due to intensive promotional campaigns and lower store contribution from suppliers, despite efficiencies in SG&A • +17.6% growth vs. Q4’13 ; +19.5% growth vs. 2013 2014 Adj. EBITDA Breakdown • EBITDA Mg. 9.0% vs. 8.5% in Q4’13; 8.9% in 2014 vs. 8.5% 2013 Pharmacies • Higher gross margin due to an increase in penetration of high margin Shopping Malls products, logistic efficiencies and extraordinary income, compensated 32.7% lower margin in regular products, an increase in rental expenses and personnel expenses associated to higher commissions to our salesforce Supermarkets 37.4% • +77.8% growth vs. Q4’13 ; +75.5% growth vs. 2013 • Net rental Mg. 82.4% vs. 82.9% in Q4’13 ; 80.2% in 2014 vs. 75.9% in 2013 Shopping Malls • Higher margin driven by recent opening of shopping malls and dilution of Pharmacies fixed costs, offset by higher SG&A 29.9% 13

02 Adjusted EBITDA Evolution Million Soles (S/. mm) InRetail Consolidated (+27.0 YoY) Supermarkets (+10.0% YoY) 85 81 202 160 154 55 131 48 117 45 110 44 104 42 42 101 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2013 2014 Pharmacies (+19.5% YoY) Shopping Malls (+75.5% YoY) 52 68 49 46 43 41 55 39 36 34 43 38 36 26 26 24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2013 2014 14