Londres mayo 2014 aa

May 2014 Morgan Stanley Global Emerging Markets Conference London

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Contents  Company Overview

 Company Challenges  Financial Highlights

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La Polar in the Chilean Retail Industry Retail Market Share – 4Q

 Established in 1920, the brand has been present in the Chilean market for almost a century.

10% 6%

Falabella

35%

Cencosud Ripley

21%

Hites La Polar

 40 stores in Chile, 15 in Santiago , 25 in regions  8.000 employees

29%

Sales per square meter (USD$) – 4Q Number of stores 4Q-2013

 20 Private Labels

42 2,630

2,677

 519 M active credit card holders

41

77 1,668 1,455

1,464

1,611

40

15 1,235

1,162

1,172

1,237

3 Falabella

Cencosud

2013

Ripley

2012

Hites

La Polar

Retail

..

15.6

Retail Income (Last 12 months) 7,5 6,8

7,1

6,9

SSS 2013: 11%

317

9.2

7,3

324

330

7,0

306

298 12M 4Q 2012

12M 1Q 2013

12M 2Q 2013

Incomes LTM ($CLP MM)

27%

9.5

12M 3Q 2013

12M 4Q 2013

UF/M2

28% Industry

26% 26% 25%

72

76

12M 4Q 2012

12M 1Q 2013

24%

82

86

89

12M 2Q 2013

12M 3Q 2013

12M 4Q 2013

Increase in Gross Margin 24%

Gross Margin LTM (%) Falabella

ParĂ­s

Ripley

Hites

4

Retail EBITDA Retail (Last 12 Months) 0,2%

2

0,2%

0,5%

1

0,0%

1

0

-7

.. .

5% Industry

-3

-0,5%

-2 -1,0%

-0,9%

-4

-1,5%

-10 -2,0%

First year of positive Retail EBITDA

-6

-2,5% -8

-2,4%

-3,0%

-10

-3,5%

-3,3% -12

-4,0% 4Q 12

1Q 13

2Q 13

3Q 13 Retail EBITDA

4Q 13 EBITDA Margin

5

Financial Financial Income (Last 12 months) 179

Loans Portfolio Incomes 80

139

70

121

Loans Portfolio increase : CLP $ 180 MM

112

114

60 50 40 30

54

53

56

61

4Q 12

1Q 13

2Q 13

3Q 13

68

20 10 0

26,2%

DEC´11

22,6%

MAR´12

19,1%

JUN´12

16,1%

SEP´12

12,4%

DEC´12

12,9%

MAR´13

10,8%

JUN´13

8,3%

7,9%

SEP´13

DEC´13

4Q 13

NPLs 7,9%

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Financial Financial EBITDA (Last 12 months) 10

14,0%

EBITDA8 increase CLP

12,2%

$ 11 MM

12,0% 10,0%

8,5% 6

8,0%

6,3%

8

4

4

2

6,0% 4,0%

5

2,0% 0,0%

0

-1 -3

-2

-2,0%

-1,5% -4,0%

-4

-5,1%

EBITDA Financial 4Q 12

1Q 13

2Q 13

Ebitda Margin 3Q 13

-6,0% 4Q 13

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First year with positive EBITDA Consolidated EBITDA (Last 12 months) 10

2,2%

1,5% 5

.. .

10% Industry 3,0%

2,0%

9 6

1,0%

1

0

0,0%

0,1%

-1,0%

-5

-8 -13 -2,0%

-2,3% -10 -3,0% -3,6%

EBITDA TOTAL

EBITDA Mg

-15

-4,0% 4Q 12

1Q 13

2Q 13

3Q 13

4Q 13

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Contents  Company Overview

 Company Challenges  Financial Highlights

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Profitability 1

Company Challenges

Operational Efficiency 2

Debt Restructure 3

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Profitability

RETAIL Margin increase (Boost private labels) Sales Increase/sqm Profitability Multi-Channels

Financial Retail

Company Challenges Operational Efficiency

Keep NPLs Increase in the number of costumers Boost other financial products

Debt Restructure

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Operational Efficiency  Optimization of logistic processes Profitability

 New Service Model Company Challenges

Decresase SG&A

Operational Efficiency

Debt Restructure

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Debt Restructure Profitability

ďƒź No funding for further growth

Company Challenges Operational Efficiency

Debt Restructure

ďƒź High financial expenses, makes it difficult to generate profits

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Contents  Company Overview  Company Challenges  Financial Highlights

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Consolidated Income Statements: 2013 USD M$

2013 723,8

% Income

2012 639,9

% Income

Cost of Sales Margin

(470,7) 253,1

-65% 35%

(481,8) 158,1

-75% 25%

SGA (w/o depreciation)

(241,4)

-33%

(228,1)

-36%

0,1 16,2

0% 2%

(81,0)

-13% -11%

Revenues

Operating Income EBITDA

(73,3)

Depreciation

(11,6)

(11,0)

Non - Operating Profit Profit (loss) before taxes

(42,1)

519,9

(42,0)

-6%

438,8

Benefits (expenses) income tax 14,0

(74,2)

Profit (loss) Chile

(28,0)

364,6

Profit (loss) Colombia

(80,6)

(23,7)

Profit (loss) Consolidated

(108,6)

341,0

69%

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Cash Flow Cash Flow Statements

31-12-2013

31-12-2012

USD M$

USD M$

(123,3)

9,1

Cash flow (used in) investing activities

(54,0)

(8,0)

Cash Flow (used in) financing activities

(31,0)

229,2

(208,2)

230,4

247,2

16,7

38,9

247,2

Net decrease in cash and cash equivalents

2,0

(4,1)

Cash and cash equivalents at the beginning of the period

3,1

7,1

Cash and cash equivalents at the end of the period

5,1

3,1

Cash flow from (used in) operating activities

Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

Cash Flow of Discontinued Operations

16

Cash Flow USD M$ Capital Increase

$240 Loans Portfolio Increase

CAPEX SERNAC

EBITDA Colombia Interests: 16 Buy Back Debt: 13 Others

Nov - 12

Final $38

Dec- 13 17

Appendix

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Summarized Balance Sheet – December 2013

Assets Current Assets Cash & Equivalents Inventory Short Term Receivables Others

2013 441 40 93 247 60

2012 594 263 91 206 33

Liabilities Current Liabilities Short Terms Financial Liabilities Trade Payables Provisions Others

2013 217 54 131 7 24

2012 230 29 139 44 19

Non Current Assets Long Terms Receivables Fixed Assets Others

241 89 111 40

205 28 128 49

Non Curren Liabilities Long Terms Financial Liabilities Others

410 322 87

404 323 81

Equity

54

166

Liabilities directly associated with noncurrent assets held for sale

38

Total

718

Non-Current Assets held for sale

37

Total

718

799

799

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Where do we come from March 2014: The Board of announces a debt restructure

March 2014: The Board of announces the retreat of Colombia in the short term June 2013: We repurchased of 26% of the Junior Bond October 2012: US$280 mill capital increase May 2012: Agreement with Chile´s Consumer Protection Agency (SERNAC, Action Class) November 2011: Settlement e with creditors is reached August 2011: New CEO is appointed (Patricio Lecaros) July 2011: New Board of Director takes office June 2011: La Polar goes into a severe financial crisis 20

Corporate Governance: Committed Board of Directors Board of Directors Alberto Marraccini V. , Vice Chairman Pedro Pellegrini R., Director Juan Pablo Vega W., Director Jorge Id S., Director Aldo Motta C., Director César Barros M. Chairman of the Board • • •

Ph.D. and M.A. in Economics at Stanford University.

Former Chairman of SalmonChile (2007-2011) Vast experience in Banking and Financial Industry

Bernardo Fontaine T., Director

Controller  Control and transparency  Reports directly to the Board  Internal Audit Gino Manríquez Controller

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Experienced Management Team

Retail Apparel Mngr.

Andrés Molina

Patricio Lecaros, CEO • Commercial Engineer, PUC • Vast experience in the retail Industry as Executive and Entrepreneur.

• 14 years in Ripley Chile • 5 years as CEO in Ripley Peru

Financial Financial retail Mngr.

Vìctor Wipe

Support CFO Álvaro Araya

Logistics Mngr.

Carlos Arredondo

HR Mngr.

María Olivia Brito

Planning Mngr.

José Tomás Larraín

IT Mngr.

Ricardo Rubio

Sales Mngr.

Marcelo Acosta

Marketing Mngr.

Rodrigo Nazer

Home and electronics Mngr.

Rodrigo Karmy

Legal Mngr.

Felipe Bunster

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For all our investors information please visit: www.nuevapolar.cl Contact Info:

Felipe Contesse Head of Investor Relations +56 2 2383 3313 ir@lapolar.cl Disclaimer: This presentation contains forward-looking statements which reflect management's best judgment based on factors currently known but involve significant risks and uncertainties.

Actual results could differ materially from these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in our financial statements.

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May 2014 Morgan Stanley Global Emerging Markets Conference London

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