Nueva Polar Corporate Presentation
Non Deal Roadshow September 2013
CONTENTS Company Overview Company Strategy Financial Highlights
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Our Operations Colombia Retail Sales 2Q
USD 11.5 M
Employees
836
Stores
5
Total Sqm
25,600
Chile Retail Sales 2Q
USD 161 M
Employees
7,136
Stores
40
Total Sqm
160,300
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La Polar in the Chilean Retail Industry Established in 1920, the brand has been present in the Chilean market for almost a century.
Renewed consumer confidence, as the number of customers buying in our stores in Chile has increased by 16% this year.
Sales per square meter shows a significant growth, reaffirming our brand value.
Brand valued by our customers as we have sucessfully regained the 10% of market share. Retail Market Share – 1H
Sales per square meter (USD$) – 2Q Number of stores 2Q-2013 42 2,001
2,071
42
78 1,122
1,204
1,255
906
Total sqm
267,101
374,345
258,212
2013
Source: Earninngs Report 2Q-2013: Falabella, Hites, Cencosud and Ripley
40
15
1,231
952
92,417
870
991
160,300
2012
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Last 3 Quarters: A Turnaround story‌ Same Store Sales (CLP Billion$)
Retail Gross Margin
% Provision for NPLs
EBITDA Margin LTM
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CONTENTS Company Overview Company Strategy Financial Highlights
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Aconcagua Plan Strategic Goals for 2014
2014
Jun-13 LTM
NPLs
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3 Strategic Drivers
1 SALES GROWTH
Sales Growth
2
MARGIN IMPROVEMENT > 10% EBITDA Margin
2
3
CUSTOMER BASE Improve INCREASE Retail Increase 3 Margin Customer Base
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SALES GROWTH
1 Sales Growth
> 10% EBITDA Margin Improve Retail Margin
Increase Customer Base
Maintain sales growth between 10% and 16% (for the next 2-3 years) Increasing the number of customers buying Boost the Private Label offering Better Store Layout • Furniture specially designed to load more products • Store remodeling
Rearrangement of Sales Force employment www.nuevapolar.cl
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Sales Growth
2 Improve Retail Margin
> 10% EBITDA Margin Increase Customer Base
Qualified Team • • •
Design Planning Purchasing Team
Product Mix • • •
Apparel/Electronics Private/Third Party Labels Fashion/Basic Products.
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DEVELOP CREDIT CARD BUSINESS Sales Growth
> 10% EBITDA Margin
Experienced team: People who know the Credit Card Business
3 Increase Customer Base
Improve Retail Margin
Attract New Premium Customers
New Credit Card Holders 2013
New Products and Innovative Technology • • • •
Cash Advances & Cash Loans Associated Stores Visa/Mastercard Fingerprint payment
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DEVELOP CREDIT CARD BUSINESS Sales Growth
> 10% EBITDA Margin
3 Increase Customer Base
Improve Retail Margin
Increase Loans Portfolio • •
Reach CLP 170b by 2013 and CLP 205b by 2014
Further reducing the NPLs
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CONTENTS Company Overview Company Strategy Financial Highlights
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EBITDA 1H 2013 EBITDA Chile
Consolidated EBITDA
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Summarized Balance Sheet – June 2013 Figures in Million USD
Assets
Liabilities
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Financial Debt
* 2013-14: 4%, 2015: 6%, 2016-22: 10% ** BCP: nominal central bank interest rate: 5,3%
Debt Profile
USD Million
June 2013: we repurchased 26% of the Junior debt, at a cash cost of USD 13 Million
Interest Payments
Capital Payments
First 5 years net payments are 2-4% of the total Income www.nuevapolar.cl
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Investment Plan for 2013-2014 Remodeling stores: 100,000 Sqm in Chile Working Capital Investments for USD 150 Million (increase in Loans Portfolio) Opening 2 new stores in Colombia and remodeling of Centro Mayor
Investments
USD Million
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Appendix
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Where do we come from
Aconcagua Plan
Junio 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 Dorector takes office June 2011: La Polar goes into a severe financial crisis www.nuevapolar.cl
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Corporate Governance: Committed Board of Directors Georges de Bourguignon A., Vice-chairman Alberto Marraccini V. , Director Juan Pablo Vega W., Director
Controller
Jorge Id S., Director
Control and transparency
Aldo Motta C., Director
Reports directly to the Board
Bernardo Fontaine T., Director
César Barros M. Chairman of the Board • • •
Internal Audit
Ph.D. and M.A. in Economics at Stanford University. Former Chairman of SalmonChile (2007-2011) Vast experience in Banking and Financial Industry Committee
Audit
Gino Manríquez Controller
Risk
Retail
Colombia
Finance
Fraud Prevention
César Barros M.
Georges de Bourguinon A. Alberto Marraccini V.
Jorge Id S.
Juan Pablo Vega W.
Bernardo Fontaine T. Aldo Motta C.
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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
Colombia CEO Francisco Martínez
Home and electronics Mngr. Rodrigo Karmy
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For all our investors information please visit:
www.nuevapolar.cl Contact Info: Maria Fernanda Sarrazola Head of Investor Relations +56 2 2383 3000 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.
Nueva Polar Corporate Presentation
Non Deal Roadshow September 2013