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FIRST QUARTER 2016 Agenda Highligh hlights s of of the period 1 - PowerPoint PPT Presentation

Earnings Presentation FIRST QUARTER 2016 Agenda Highligh hlights s of of the period 1 Consolidated overview 2 3 Overview by Business Units Overview by Country 4 Balance Sheet Financials 5 Q&A 6 First t Quarter er Hi High


  1. Earnings Presentation FIRST QUARTER 2016

  2. Agenda Highligh hlights s of of the period 1 Consolidated overview 2 3 Overview by Business Units Overview by Country 4 Balance Sheet Financials 5 Q&A 6

  3. First t Quarter er Hi High ghlight ights 1 st Quarter Earnings Release Businesses remain resilient with revenues and Same Store Sales growth in local currency across the region except Brazil Adjusted EBITDA margin improved across the region reaching 7.5% (+149 bps YoY) Adjusted EBITDA improved 16,9% despite of currency devaluation across de region Net Debt/ Adj. EBITDA ratio falls 56 bps vs 1Q15 reaching 3.27x. Excluding one offs the ratio was 2.86x in 1Q16 3

  4. Focusing ing on Effic ficient ient Core Busines esse ses 1 st Quarter Earnings Release Non-performing store program implemented 170 stores under program, all already reviewed 15 stores closed to date 15% of the stores achieved positive EBITDA generation and 66% of total stores achieved an EBITDA growth greater that the average of its banner Continue divesting non-core assets Sale of unproductive real estate in Chile As of March, 16 properties had already reached an agreement for sale Due Diligence process of Gas Station business in Colombia in final stage 4

  5. Agenda Highlights of the period 1 Con onso solida lidated ed ov overview ew 2 3 Overview by Business Units Overview by Country 4 Balance Sheet Financials 5 Q&A 6

  6. All figures are in CLP million 1Q15 2,652,647 Revenues decreased due to currencies devaluation vs CLP, despite positive SSS 1Q15 Currenc Revenues -6.4% ncy Impa 2,483,844 1Q16 1Q16 pact t Low across almost all markets 150 170 190 210 230 40 50 60 70 80 jan/15 owers jan/15 jan/15 jan/15 mar/15 mar/15 mar/15 mar/15 rs CLP Reven apr/15 apr/15 may/15 may/15 LatAm currency depreciation against CLP jun/15 jun/15 PEN ARS jul/15 jul/15 aug/15 aug/15 sep/15 sep/15 oct/15 oct/15 nov/15 nov/15 dec/15 dec/15 jan/16 jan/16 enue feb/16 feb/16 mar/16 mar/16 0,22 0,24 0,26 0,28 150 170 190 210 230 250 0,2 jan/15 jan/15 feb/15 feb/15 mar/15 mar/15 apr/15 apr/15 may/15 may/15 jun/15 1 st Quarter Earnings Release jun/15 BRL jul/15 COP jul/15 aug/15 aug/15 sep/15 sep/15 oct/15 oct/15 nov/15 dec/15 dec/15 jan/16 jan/16 feb/16 feb/16 mar/16 mar/16 6

  7. Cos ost Managem gemen ent Drives ves Rob obust t EBITDA TDA 1 st Quarter Earnings Release COGS SG&A Adjusted EBITDA Performance 185,581 1,912,100 629,784 1,763,980 587,777 158,759 -6.7% - 7.7% +16.9% +6.0% +7.5% 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 Costs control program yields benefits across business Double digit adjusted EBITDA growth Joint promotional activities with suppliers Considering constant exchange rates YoY, Adjusted Centralization of own production EBITDA would have increased by 33.5% Improvement in processes Strong performance from financial services, Decrease in travelling & discretionary expenses department stores and supermarkets divisions Adjusted EBITDA Margin expanded 149 bps 7 All figures are in CLP million

  8. Agenda Highlights of the period 1 Consolidated overview 2 3 Overview ew by Busi sines ness s Units its Overview by Country 4 Balance Sheet Financials 5 Q&A 6

  9. Revenu enues es by by Busines ess Units 1 st Quarter Earnings Release Supermarkets Home Improvement 1Q16 1Q15 1Q16 1,989,177 348,006 1,813,974 324,369 -6.8% -8.8% 1Q16 1Q15 1Q15 1Q16 Department Stores • Supermarket sales were mainly affected by currency devaluation of Argentina, Brazil and Colombia. Excluding Brazil, Supermarket SSS grew in all countries, moreover traffic increased in Colombia 247,215 and Chile 222,927 • Home Improvement SSS growth QoQ in Chile. In Colombia SSS increased due to higher traffic +10.9% • Revenue growth in Department Stores driven by improved performance at Johnson and increased omnichannel sales, achieving double-digit SSS growth in Chile & Peru 1Q16 1Q15 9 All figures are in CLP million

  10. Reven enues es by Busines ess Units 1 st Quarter Earnings Release Financial Services Shopping Centers 55,964 39,733 55,258 36,464 +1.3% +9.0% 1Q15 1Q16 1Q15 1Q16 • Revenues increased in Peru and Argentina explained • Improvement in tenant sales and parking mainly by the Portfolio expansion, higher fee income revenues in Chile collection and increased insurance sales • Increased occupancy rate and updated • Lower business contributions due to increased cost tenant contracts in Peru of funding in Colombia and currency devaluation • Argentina impacted by currency devaluation 10 10 All figures are in CLP million

  11. Adjusted ed EBITDA TDA by Busines ess s Units 1 st Quarter Earnings Release Supermarkets Home Improvement 1Q16 1Q15 1Q16 122,087 45,123 112,361 40,377 +8.7% -10.5% 1Q15 1Q16 1Q15 1Q16 Department Stores • In supermarkets Adj. EBITDA increased despite the currency devaluation. Adj. EBITDA margin in Chile reached 10.4% in 7,735 1Q16 and Argentina, Brazil and Colombia improved over 50 bps YoY • EBITDA margin expanded by 97 bps in Department Stores 4,819 explained by increased profitability at Johnson and better +60.5% transition among seasons • Lower EBITDA margin in Home Improvement driven by high gross margin comparison bases in Chile and slowdown in 1Q15 1Q16 consumption in Argentina 11 11 All figures are in CLP million

  12. Adjusted ed EBITDA TDA by Busines ess s Units 1 st Quarter Earnings Release Financial Services Shopping Centers 17,736 43,630 43,217 12,075 -0.9% +46.9% 1Q15 1Q16 1Q15 1Q16 • Chile reflects higher parking sales and variable income • Higher results from Argentina and Peru after the by greater sales from tenants, partially offset by the portfolio increase in these countries impact of the Tax Reform • • In Chile higher profitability driven by lower costs of In Peru higher EBITDA mainly reflects increased funding and the positive impact after the JV with occupancy rates in the Arequipa Mall and the update of Scotiabank leasing contracts • Argentina reflects the devaluation of the currency and higher utilities costs 12 12 All figures are in CLP million

  13. Agenda Highlights of the period 1 Consolidated overview 2 3 Overview by Business Units Overview ew by Coun ountry ry 4 Balance Sheet Financials 5 Q&A 6

  14. Overview ew by Cou ountry: ntry: CHILE 1 st Quarter Earnings Release Revenue Performance Adjusted EBITDA Performance 93,990 1,031,718 73,098 961,745 +28.6% +9.1% +7.6% +7.3% 1Q16 1Q15 1Q15 1Q16 • Gross Margin improved in supermarkets and department • Revenue growth across Supermarkets, Home Improvement and stores Department Stores • Adj. EBITDA growth across the board, driven by lower SG&A • SSS improvement as a result of higher ticket driven by more and lower shrinkage promotional activities, mix adjustment, good performance in campaigns and season categories • Partially affected by Easter 14 14 All figures are in CLP million

  15. Overview ew by Coun untry: try: Argentina 1 st Quarter Earnings Release Adjusted EBITDA Performance Revenue Performance +21.0% +32.3% 755,499 62,470 622,353 56,773 -9,1% +9.1% -17.6% +8.3% 1Q15 1Q16 1Q15 1Q16 • Adj. EBITDA increased in Supermarkets and Home • Lower revenues as a result of currency devaluation Improvement in local peso terms • Revenues in local currency increased, driven by growth in • In Chilean peso the Adjusted EBITDA reduced due to the Supermarkets and Home Improvement SSS impact of the Argentine Peso devaluation • Slowdown in consumption 15 15 % Growth in local currency All figures are in CLP million

  16. Overview ew by Cou ountry: ntry: Brazil 1 st Quarter Earnings Release Revenue Performance Adjusted EBITDA Performance -2.9% +25.0% 476,416 9,037 8,713 378,855 -20.5% +3.7% +2.4% +1.8% 1Q15 1Q15 1Q16 1Q16 • In Chilean peso terms revenues decreased as a result of • Gross Margin expanded YoY for the 6th consecutive the Real devaluation quarter, growing 211 bps. This growth is the result of better promotional activity and lower shrinkage • SSS declined by 2.3% as a result of lower sales in Bretas • In supermarkets adjusted EBITDA improved 9.2% in and non-food in Gbarbosa, which was partially offset by Chilean peso and margin expanded 53 bps as result of growth in Prezunic, Mercantil Rodriguez and food in Gbarbosa better control expenses and pricing strategy • SSS improved QoQ as a result of higher food sales 16 16 % Growth in local currency All figures are in CLP million

  17. Overview ew by Cou ountry: ntry: Peru 1 st Quarter Earnings Release Revenue Performance Adjusted EBITDA Performance +5.7% +58.8% 22,760 244,132 14,465 231,528 + 57.3% +5.4% +9.3% +6.2% 1Q15 1Q15 1Q16 1Q16 • Gross Margin expanded 17 bps by increased contribution • Revenues increased 2.9% in Supermarkets and 21.8% in Department Stores of private label, which was partially offset by higher promotional activities • In local currency, revenues also grew as a result of • Adjusted EBITDA increased as a result of higher Supermarkets SSS growth YoY and brand consolidation profitability from department Stores, Shopping centers and financial retail operation 17 17 % Growth in local currency All figures are in CLP million

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