Santiago BTG IV Andean CEO Conference
November 2015
Contents
Company Overview Market Overview Strategic Plan
Financial Highlights Appendix
1
Company Overview Established in 1920, the brand has been present in the Chilean market for almost a century. 6,837 Employees 38 Stores Sales surface 157 Th. Sqm. 526 th. active credit card holders ( N° 6 in the industry) More than 20 Private labels, representing 35% of retail revenues 9% Market Share
2
Contents
Company Overview Market Overview
Strategic Plan Financial Highlights Appendix
3
4
Market Overview Department Store Market Share (revenues)
N째 of Stores 43
9% 21%
La Polar
5% 78
Hites 45 Falabella 19
Cencosud Ripley
27%
38% 38 0
*Information June 2015
20
40
60
80
100
5
Market Overview Financial Market Share (revenues)
La Polar
16%
Open accounts w/balance
7% 9%
Hites
1.234.000
Ripley
1.356.736
Cencosud
2.311.288
Falabella
ABC Din
7%
12%
Wallmart
779.875
Tricot 4%
WallMart
482.453
Tricot
666.862
ABC Din
Falabella
478.000
Hites
11% Cencosud Ripley
526.081
La Polar
34%
*Information June 2015 except Cencosud accounts (Dec 2014)
-
500.000
1.000.000
1.500.000
2.000.000
2.500.000
Contents
Company Overview Market Overview Strategic Plan
Financial Highlights Appendix
6
7
Retail /SG&A Consolidated SG&A w/o Depreciation LTM
Retail Margin LTM PLAN 2018
31,0%
SG&A/Consolidated Revenues (1)
30,0% 28,8%
29,0%
28,3%
28,0% 27,0%
36%
27,8% 26,9%
26,7%
35,5%
34%
26,9%
32%
34,9%
34,8%
34,2% 34,9%
33,4%
30% 26,0%
PLAN 2018
28% 26%
25,0% 1Q 14
2Q 14
3Q 14
4Q 14
1Q 15
Sales UF/sqm LTM (per mounth)
PLAN 2018
8,0
7,5
1Q 2014
2Q 15
7,0
7,0
4Q 2014
1Q 2015
Challenges
Efficiency in SG&A
6,8 6,7
6,0 2Q 2014
3Q 2014
Grow with our private labels
7,4 7,2
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
(1) Consolidated Revenues includes Retail sales and Financial incomes.
2Q 2015
8
Financial /SG&A Open accounts w/balance (Th.) 700
PLAN 2018
650 600
550 500
531
524 508
492
450 1Q´14
2Q´14
3Q´14
4Q´14
Credit Card Loan Stock (CLP $ B) PLAN 2018
200 180
2Q´15
Keep the Risk Rate between 10% - 11% Implentation of Visa in early 2016
179
170
1Q´15
Challenges
210 190
526
509
163
160
153 144
150 140
136
133
141
130 120 110 4Q´13
1Q´14
2Q´14
3Q´14
4Q´14
1Q´15
2Q´15
La Polar VISA
Contents
Company Overview Market Overview Strategic Plan Financial Highlights
Appendix
9
10
Financial Highligths Financial Debt Reestructuring 2014 Financial Debt CLP $ B
Equity CLP $ B
Dec-14 230
-19
Jun-15 53
144
Conversion of H Bonds into shares N째 of Shares 06-02-2015
Shares NOV 2015
New Shares
H Bonds ( eq Shares) not converted NOV 2015
998,617,522
1.606.190.395
607.572.873
1.389.652.171
11
Financial Highligths EBITDA CLP $ B LTM 10 2,4%
EBITDA Margin
10,4%
3Q 2014 1Q 2014
4Q 2014
1Q 2015
2Q 2015
2Q 2014
-0,5% -1,4%
-1,3%
-1,4%
-5
-5
-6
-2
Quarter CLP $ M
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
EBITDA
(1,757)
(1,321)
(5,372)
3,253
(1,918)
1,946
Contents
Company Overview Market Overview Strategic Plan Financial Highlights
Appendix
12
13
Appendix P&L 2Q 2015 2Q 2015
Consolidated r
Revenues
94,2
-6,1%
Costs Gross Margin
(60,1)
CLP $ B
2Q 2014
2Q 2015
100,4
77,6
(64,9)
(53,3)
35,4
24,3
35,3%
31,3%
(36,8)
(25,1)
-34,1%
-36,6%
2,0
Retail r
82,8
17,8
(58,6)
(7,1)
24,2
10,7
29,2%
60,3%
(28,4)
(8,0)
-32,3%
-34,3%
-44,8%
-50,0%
(1,3)
(0,8)
(4,2)
2,8
2,9
2,1%
-1,3%
-1,0%
-5,1%
15,5%
15,2%
Depretiation
(2,6)
(2,0)
Operating Income
(0,6)
(3,3)
Non - Operating Income Profit (Loss) Before Taxes
(3,3)
(7,5)
(3,9)
(10,8)
Benefits (Expenses) Income Tax Profit (Loss)
(0,5)
(1,0)
(3,4)
(11,8)
34,1 % Revenues
SG&A (w/o depreciation)
36,2%
(32,1) % Revenues
EBITDA % Revenues
-3,8%
-12,6%
-6,3%
2Q 2014
Financial 2Q 2015 2Q 2014 r
0,2%
-11,8%
-6,3%
19,0 (6,6)
-13,3%
12,4 65,2%
-16,1%
(9,5)
14
Appendix P&L 1H 2015 1H 2015
Consolidated r
Revenues
178,9
-6,8%
Costs Gross Margin
(116,2)
CLP $ B
1H 2014
1H 2015
192,0
146,2
(125,3)
(103,3)
66,7
42,9
34,7%
29,3%
(69,8)
(48,2)
-35,0%
-36,3%
0,0
Retail r
155,8
35,2
(113,5)
(13,5)
42,3
21,7
27,1%
61,7%
(52,5)
(16,4)
-32,9%
-33,7%
-46,6%
-49,9%
(3,1)
(5,3)
(10,2)
5,3
7,1
0,0%
-1,6%
-3,6%
-6,6%
15,1%
18,2%
Depretiation
(4,4)
(3,8)
Operating Income
(4,4)
(6,8)
Non - Operating Income Profit (Loss) Before Taxes
(7,6)
(14,1)
(12,0)
(21,0)
2,7
0,6
(9,3)
(21,4)
62,7 % Revenues
SG&A (w/o depreciation)
EBITDA % Revenues
Benefits (Expenses) Income Tax Profit (Loss)
35,0% (62,6)
% Revenues
-6,0%
-10,2%
-6,1%
1H 2014
Financial 1H 2015 1H 2014 r
1,4%
-8,3%
-9,9%
39,1 (12,5)
-18,4%
26,6
68,1% -15,9%
(19,5)
15
Appendix Balance Sheet CLP B$ 2Q´15
CLP B$ 2Q´14
CLP B$ 2Q´15
16 114 56 33 219
13 111 55 48 228
21 110 58 42 231
Long-term account receivable Properties, plant and equipment Other Non - Current Assets Total Non - Current Assets
22 53 24 99
37 61 23 120
31 59 20 111
Total assets
319
348
342
29 54 13 97
24 68 13 104
44 64 17 125
Long Term Financial Debt Other Non - Current Liabilities Total Non - Current Liabilities
24 54 78
189 46 234
186 50 236
Total Liabilities
175
338
361
Equity
144
9
(19)
Current Assets Cash and Cash equivalents Current Trade and Accounts Receivables Inventory Other Current Assets Total Current Assets
Non-Current Assets
Current Liabilities Other Current Financial Liabilities Other Trade and Other Account Payable Other Current Liabilities Total Current Liabilities
Non - Current Liabilities
16
Where do we come from June 2011: La Polar goes into a severe financial crisis
August 2011: New CEO is appointed (Patricio Lecaros)
July 2011: New Board of Director takes office
March 2014: The company announces the beginning of the debt restructure
November 2011: Settlement with creditors is reached
August 2014: The Shareholders meeting approves the debt restructure
July 2014: The Board of directors announces Mr Gino Manriquez as new Interim CEO
May 2012: Agreement with Chile´s Consumer Protection Agency
October 2012: US$280 mill capital increase
December 2014: The bonds conversion (F &G) was approved
September 2014: The Creditors meeting approves the debt restructure
June 2013: We repurchased of 26% of the Junior Bond
February 2015: The bonds conversion started
March 2014: The Board of directors announces the retreat of Colombia in the short term
May 2015: Mr Vilajuna is appointed as Chairman of the board September 2015: Mr Andres Eyzaguirre is appointed as new CEO
Board of Directors Jorge Id S., Vice Chairman Pedro Pellegrini R. Alberto Mario Sobredo del Amo Juan Enrique Vilajuana Richard Walter Urresti Gundlach Bernardo Fontaine T. Cristobal Hurtado
Juan Enrique Vilajuana Chairman of the Board
Committee
Pedro Pellegrini R.
Andres Eyzaguirre Astaburuaga CEO Business and Administration , Pontificia Universidad Cat贸lica
Risk
Directors
Retail
*
* * *
* *
Jorge Id S.
Alberto Mario Sobredo del Amo
Business and Administration , Universidad de Chile
Juan Enrique Vilajuana
*
Richard Walter Urresti Gundlach
*
Bernardo Fontaine T. Cristobal Hurtado
* *
Contact Info Felipe Contesse Head of Investor Relations +56 2 2383 3313 ir@lapolar.cl For all our investors information please visit:
www.nuevapolar.cl Disclaimer: 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.
Santiago BTG IV Andean CEO Conference
November 2015