Non deal roadshow

NUEVAPOLAR

NON-DEAL ROADSHOW

January 2013

Company Overview

Where do we come from

Aconcagua Plan October 2012: US$280 millions capital increase May 2012: Agreement with Chile´s Customer Protection Agency (SERNAC , Class action)

November 2011: Settlement with creditors is reached August 2011: New CEO is appointed (Patricio Lecaros)

July 2011: New Board of Director takes office

Jun 2011: La Polar goes into a severe financial crisis 3

Committed Board of Directors

Company overview

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

Andrés Eyzaguirre A., 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

Gino Manríquez Controller

Directors (1) Directors (2)

Risk

Retail

Colombia

Finance

César Barros M.

Georges de Bourguinon A.



Alberto Marraccini V.



 



Jorge Id S.





Juan Pablo Vega W.



  

Andrés Eyzaguirre A. (*)

Aldo Motta C.



(1) Committee from Jul/11 to May/12, (2) Committee from May/12 (*) Appointed on January 8, 2013 after the resignation of Fernando Tisné

4

New Management Team

Company overview

First-class team with a strong experience in the industry CEO

Patricio Lecaros CEO + 23 years of exp.

Ripley, C&I, Quintec

Andrés Molina

Rodrigo Karmy

Rodrigo Nazer

Ricardo Rubio

Álvaro Araya

Olivia Brito

Andrés Escabini

Apparel Mngr.

Home and Electronics Mngr.

Marketing Mngr.

IT Mngr.

CFO

H.R. Mngr.

Legal Mngr.

+ 11 years of exp.

SQM

+ 21 years of exp.

Servipag and Corpgroup

+ 11 years of exp.

V. Undurraga

Carlos Arredondo

+ 17 years of exp.

Ripley, Hites

+ 16 years of exp.

Epson Chile

+ 9 years exp.

La Polar

+ 27 years of exp.

Salcobrand

Colombia CEO

Francisco Martínez

Sergio López

Claudio Sierpe

Fernado Silva

Enrique Vitar

Eduardo Lobos

Marcelo Acosta

Risk Mngr.

Costumers and Payment Mngr.

Insurance Brokerage Mngr.

Collecting Mngr

Planning Mngr.

Sales and Distrib.

Mngr.

CEO Colombia

+ 30 years of exp.

Hites and Scotiabank

+ 18 years of exp.

Falabella

+ 27 years of exp.

Din, Conosur, Ripley

+ 34 years of exp.

Banco Estado, others

+ 28 years of exp.

Banefe, B. Falab., Johnson

+ 22 years of exp.

La Polar, BCI

+ 21 years of exp.

Ripley Johnson

Logistics Mngr.

+ 20 years of exp.

Ripley

5

4th Player in Department Stores … … with

Company overview

9% Market Share in Sales Market Share by Revenues (Sept 2012 LTM)



Relevant Market Share in Chile



The retail market in Chile has significant

barriers to entry 

La Polar has smaller stores, with an average of 4,021 m2 per store Source: Company Reports

Monthly Revenues by Selling Space (Sept 2012 LTM)

Number of Department Stores

UF/M2

N°

Avg. 6,634m2

Avg. 2,967m2

Avg..

6,777m2

Avg. 4,021m2

Avg..

6,384m2 Avg. 6,214m2

Source: Company reports Cencosud: includes Johnson and A. Paris UF Unidad de Fomentto (Indexed Unit of Account Chilean Peso)

For more information about the Chilean Retail Industry please see appendix 2

6 6

Unique Portfolio of Strategic Locations throughout Chile Chile

With stores in 20 of the 24 largest cities in the country, 50% of the stores are in the largest cities throughout Chile

LOCATIONS are a

significant barrier to entry

The strategic locations of our stores, enables the

Company overview

Santiago

Iquique Antofagasta Calama

Copiapó Coquimbo La Serena Ovalle Valparaíso Viña del Mar Los Andes El Belloto Santiago San Antonio Curicó Rancagua Talca San Fernando Linares Los Ángeles Concepción Bío Bío Osorno Chillán Puerto Montt Valdivia

Colina

Panamericana

Estación Central Las Rejas Maipú

Puente Ahumada

La Reina

La Florida Gran Avenida El Bosque

San Bernardo

Puente Alto

Mall Plaza Sur

40 STORES Punta Arenas

Plaza Norte

+ 161,000 m2 of SELLING SPACE

company to reach a broad range of income segment of the population 7

La Polar, a strong Brand Rebounding Established in 1920, the brand has been present in the Chilean market for almost a century 

Customers are one of the most valuable asset of the company

Company Overview



December 22/2012 was the bestselling day in LA POLAR HISTORY



Sales show a significant recovery, reaffirming our BRAND VALUE

Revenues Performance, a strong recovery after the crisis (UF/m2) July 12.7%

August 9%

September 9%

4Q 8.6%

Source: La Polar / UF Unidad de Fomento (currency indexed to Chilean Peso)

8

Business Overview

New Business Model … … Retail the Core Business of the Company

Business overview

 New products – brand mix 55% sales from Apparel and Shoes 30% sales from Private Labels  New store concept

US$40 million in Capex in the next 2 years, for remodeling stores  Searching for new premium customers % of Revenues

by Source

Monthly Revenues (recovering the focus in retail)

UF/m2”

10

Reducing the financial risk…

Business overview

453,473 customers with LA POLAR CREDIT CARD (TLP) with debt Decrease Risk rate (1)

 Attracting new customers  New credit card 12%

 New credit policy

Aconcagua Plan

 New collection policy (1) Provisions

stocks /Gross receivables

Source: La Polar

 New Visa / Master La Polar credit card  New Benefit Plan  La Polar Credit Card approved by SBIF  New financial regulations in Chile

11

Capex Program for 2013 and 2014 ďƒź Remodeling 14 stores in Chile of aprox. 100,000 m2 ďƒź Opening 6-8 new stores in Colombia

Capex Program (US$ millions) 2013-2014 Chile Remodeling and others

50

Colombia New stores Total

60 110

12

Remodeling Stores in Chile 2013 -2014 100,000 m2 with a CAPEX US$40 million

Jan-13

April-13

Jun-13

Aug-13

2 stores

3 stores

1 store

3 stores

First half 2014

7 stores

13

La Polar Colombia‌ ‌growth

Business Overview

opportunity

Stores

New Store Bucaramanga Mall Cacique Opening : November 2012 Area of 6,103 m2

Carabobo Opening: August 2011

Centro Mayor Opening: October 2010

Los Molinos Opening: October 2011

Floresta Opening: November 2011

14

La Polar Colombia… …growth

Business Overview

opportunity Expansion Plan

3 years Capex USD 100 million Barranquilla

Cartagena de Indias

Bucaramanga Bogotá

Medellín Pereira Cali

  

For more information about the Colombian Retail Industry please see appendix 2

Villavicencio

18 projects in development and study stages 2 new stores in 2013 Remodeling stores

15

Aconcagua Strategic Plan

Aconcagua

Strategic Plan

La Polar has set specific goals for the Chilean operation, for the short and medium term, to be achieved in 2014

ACONCAGUA

Sept. 2012 LTM

10

6.5

30%

21%

Apparel and shoes (% sales retail)

55%

54%

Private labels (% sales retail)

30%

23%

SG&A expenses / Retail revenues

30%

39%

Financial revenues/retail revenues

30%

23%

Risk rate

12%

15%

Sales % with LP credit card

50%

49%

10%

-5.3%

Monthly retail revenues in Chile (UF/M2) Retail Direct Margin

Retail Ebitda margin

>

17

Financial Highlights

Financial Performance

Company Financial Highlights overview

Key indicators show an increase in revenues

Income Statement

Retail Sales in Chile CLP Billion

(CLP Billion)

1Q ’12

2Q ’12

3Q ’12

REVENUES

81.1

91.6

86.5

Retail Financial

64.8 16.3

76.4 15.2

72.1 14.4

Gross profit

-7.2

20.4

19.7

EBITDA Chile Colombia

-32.4 -29.8 -2.7

-5.5 -2.2 -3.3

-8.9 -5.4 -3.5

Adjusted EBITDA Chile Colombia

-10.6 -6.9 -2.7

-4.7 -1.4 -3.3

-7 -3.5 -3.5

Net Earnings

-34.9

-10.2

-13.6

(1)

(1) EBITDA adjusted nonrecurring expenses (2) Business Plan

+7%

Plan Aconcagua

(2)

+4%

+5%

Ajusted EBITDA Margin (1) over Chile Retail (2)

Plan Aconcagua

19 19

Financial Debt Financial Debt Restructuring Senior Bond CLP$ 185 billion Original Debt CLP$ 450 billion

Present Value Settlement ** CLP$ 200 billion

Junior Bond (UF) CLP$ 236 billion Legal settlement

Senior Bond Amortization Semiannual starting in

PS 27 CLP$ 24 billion

@ rate UF + 10 * * Discount rate to be defined by an external study

Bond Amortization Profile (CLP$ billion)

2015

Interests From 2013 to 2022 with a rate between 4% and 10%

Junior Bond (UF) Amortization One coupon in 2032 Interests No interest payments Tranche C (PS 27) Amortization Semiannual starting in July 2018 until July 2024 Interests BCP 10 Rate + 1% starting July 31, 2013

20 20

Balance Sheet Pro-forma Balance Sheet As of September 2012 Balance Sheet (CLP Billion) Cash and equivalents

Main Impacts of the Capital Increase Dec ‘11

Sep ’12 Proforma*

Sep ’12

Cash Effect:

35

10

143

132

92

92

44

52

52

Fixed Assets

69

67

67

Other Assets

55

75

75

335

296

429

Financial Debt Effect:

476

488

232

- CLP$ 256 billion financial debt restructuring

470

483

14

6

5

218

Accounts Payables

68

59

59

Other Liabilities

20

37

37

-228

-288

101

335

296

429

Accounts Receivables Inventories

Total Assets Financial Debt Current Non-current

Equity Total Liabilities and Equity

+ CLP$ 133 billion due to Capital Increase

Efect on Equity : + CLP$ 133 billion due to Capital increase + CLP$ 256 billion financial debt restructing

(*) Effect of the capital increase

21

HIGHLIGHTS  November 2012: A new store was opened in Bucaramanga, Colombia  December 2012: release credit card restrictions from regulator (SBIF)  December 2012: New Senior and Junior bond filling as part of the Settlement  January 2013: NUEVAPOLAR part of the IPSA Chilean Stock Exchange Index

NEXT STEPS  January 2013: Customer Compensation Plan (SERNAC)  January 2013: Start store remodeling  1Q 2013: New web page for Investors www.nuevapolar.cl  March 20, 2013: 2012 Financial Statements  March 22, 2013: Conference Call 4Q 2012 Results

Investor Relations Contact: María Paz Ortega,,Head of Investor Relations Phone (562) 2383226 (mortega@lapolar.cl) 22

Appendix 1

Products  Full renovation of the apparel department  New mix of exclusive brands 2.0  Increase square meters of exclusive brands in stores  Improvements in the purchasing process  New design department

 New mix of private brands and local suppliers

24

New Brands

 Private Brand  Customer: woman 28-35 years  Business area: apparel, accesories, shoes, handbags and home  Price level: Medium–High  Style: Sport Fashion

251

New Brands

}

 Private Brand  Customer: women 18-25 years  Business area: apparel, and shoes  Price level: Medium–High

 Style: Sport casual

26

New Brands

Private Brand Customer: woman and man 18-25 years Business area: apparel Price level: Medium – High Style: Sport Casual

27

New Brands

}

 Private Brand  Customer: man 30-40 years  Business area: apparel  Price level: Medium  Style: Sport Casual

28

New

Store Proposal

 Change of image/ layout

 Remodeling 100.000 m2 in the next 2 years  Capex: USD 40 MM

1st place award: Shop window of the year by the Santiago Chamber of Commerce

29

Store proposal main goals are….

 Increase sales and returns by m2  Improve visual merchandising to make more efficient takeoffs spaces  Upgrade stores  Increase market share

30

Appendix 2

32

33

34

35

36

Disclaimer This presentation contains forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and its management. The forward-looking statements are not guarantee of future performance and involves 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 forwardlooking statements.