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CONTENTS
1.
1Q 13 Highlights
2. Recent events 3. Consolidated Income Statements 4. Retail Business Indicators 5. Stores 6. Credit Business Indicators 7. EBITDA 8. Financial Statements La Polar S.A. - IFRS a. Balance Sheets b. Income Statements c. Cash Flow
Notes:  
Quarters are named as: 1Q, 2Q, 3Q, 4Q accordingly. Currency symbols: CLP Chilean Pesos, US$ U.S. dollars, M millions, B billions.
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1. 1Q 2013 HIGHLIGHTS
Same Store Sales in Chile continued with a positive trend. During the first quarter SSS increased by 15% Continuing with 4Q 2012 trend, during the first quarter, Same Store Sales (SSS) grew by 15% over the same period last year. At the same time, revenue from the retail business grew by 13%, to a total amount of US$142.6 million. This growth in sales in mainly due to the leading role of private labels in the product mix, the growth of private labels was 36% over the same period last year.
Sustained Growth in Retail Margin Similar to 4Q 2012, the Chilean retail operation grew in 3 percentage points during the first quarter 2013 compared with the same period last year, reaching 23%, a contribution of US$ 32.7 million. This progress was partly driven by the increase in the sales of private labels and improvements in our buying process. Although the first quarter, is known for strong discount sales affecting the margin, this increase of 3 percentage points is key to achieve our Aconcagua goals.
Financial Retail Business back to positive The Financial business EBITDA starts the year with a positive outcome. Boosted by lower risk levels, which in turn drove lower provision expenses. The stability in financial income was also a factor for this positive EBITDA.
Colombia revenues grew by 22% Due to the opening of the new store in Bucaramanga, during the first quarter 2013, revenues from the retail business in Colombia grew by 22% over the same period last year.
Agreement with SERNAC The court approval and the implementation of the settlement with SERNAC, on January 14, 2013, is an important milestone of the first quarter 2013. The settlement agreement compensates all those customers affected by the unilateral renegotiations incurred by the previous management. Furthermore, as part of the agreement, the company and SERNAC started a revision process of all the contracts that regulate the relationship with customers.
Store Remodeling During March, we began our store remodeling process in Santiago and in Bogota, Colombia. The plan considers the remodeling of 100,000 square meters of stores committed during the capital increase and a crucial pillar in the starting of the Aconcagua Plan. During 2013 a total of 9 stores will be renovated.
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2. RECENT DEVELOPMENTS Ordinary Shareholders Meeting On April 18, 2013, the ordinary shareholders’ meeting took place, during the session, the following agreements were reached, among others: For a 3 year period, the 7 members of the board of directors were appointed as follows: Mr. César Barros Montero, Mr. Georges de Bourguignon Arndt, Mr. Jorge Id Sánchez, Mr. Juan Pablo Vega Walker, Mr. Bernardo Fontaine Talavera, Mr. Aldo Motta Camp and Mr. Alberto Marraccini Valenzuela, as independent member of the board. Ernst & Young Profesionales de Auditoría y Asesoría Limitada was appointed as external audit firm. At the same time, Humphreys Ltda. and ICR Compañía Clasificadora de Riesgo Limitada were appointed as rating agencies, for 2013 fiscal year. Board of Directors On April 23, 2013, the board appointed Mr. César Barros Montero as Chairman of the Board and Mr. Georges de Bourguignon Arndt as Vice-Chairman. At the same time, the Audit Committee was conformed, Mr. Alberto Marraccini, as Chairman and Mr. Juan Pablo Vega Walker and Mr. Jorge Id Sánchez were appointed as members of the Committee. New Financial Retail Management The company is strongly committed to achieve the Aconcagua Plan, an important part of this plan is the development of the Financial Business. For this purpose, the team in charge of this area was strengthened in a process initiated in April, when Mr. Víctor Wipe joined the company as Financial Retail Officer. The main objectives of this new revamped structure are increasing the number of customers, boost the use of financial and insurance products, while ensuring a strict regulatory compliance and also to improve the buying experience. The new structure integrates three new departments: Commercial Department, Operations and Development Department and Business and Financial Control and Intelligence Department.
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3. CONSOLIDATED INCOME STATEMENT Consolidated Income Statement 1Q 2013 M$
1Q 2012 MM$ % Income
Revenues Cost of sales Margin
90,557 (66,643) 23,913
SGA (w/o depreciation) EBITDA Depreciation Non-operating Profit (loss) before taxes Benefits (expenses) income tax Profit (Loss)
(29,877) (5,829) (1,897) (2,533) (10,393) 2,265 (8,128)
-74% 26% -33% -6%
-11% -9%
% Income
81,066 (88,220) (7,155) (26,975) (32,454) (1,837) 274 (35,693) 826 (34,867)
-109% -9% -33% -40%
-44% -43%
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EBITDA Margin for the 1Q 2013 was -6% of revenues, compared to -40% during the same period of last year. It is important to remark that financial cost during first quarter 2012, include non-recurring expenses for a total amount of M$21,220, due to the agreement reached with SERNAC and Fundaci贸n Chile Ciudadano, however excluding this effect, EBITDA margin reached to -14%. The increase in the EBITDA margin is explained by a group of variables that will be described by business segment, as follows.
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EBITDA Margin: EBITDA/revenues
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4. RETAIL BUSINESS INDICATORS REVENUES AND MARGIN
Retail Revenues (M$) Chile Colombia
1Q´13
1Q´12
%
67,327 6,577
59,358 5,411
13% 22%
RETAIL CHILE Retail Revenues2 (Billion $)
During the first quarter 2013, revenues from the retail business compared to the same period last year, grew by 13%, reaching M$ 67,327. It is important to remark, that according to the National Chamber of Commerce, the retail industry in the metropolitan region grew by 8.2%% in 1Q13. The recovery in sales is due mainly to the strengthening of private labels. Revenues from private brands showed a 36% growth over the same period of last year, accounting for 26% of total sales during the first quarter 2013.
Note2 L8M 2011-2012 considers from Aug-2011 to Mar-2012 and L8M 2012-2013 considers from Aug-2012 to Mar-2013. The Security and Insurance Supervisor (SVS in Spanish) authorized the Company to file consolidated financial statements not comparable, starting on December 31, 2011 until the financial statements as of March 31, 2013, for this reason 8 month is the maximum comparable period.
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The good results will be strengthened by the store remodeling that started in March. In our new layout, the merchandise, and especially our private brands, will be the star inside the store.
Same Store Sales (Billion $)
52 46 23 21
21 18
Aug
17
18
Sep
19
17
Oct
25
23
19
Nov
Dec
L8M 2011 - 2012
18
Jan
20
Feb
21
Mar
L8M 2012 - 2013
Continuing with 4Q 2012 trend, during the first quarter, Same Store Sales (SSS) grew by 15% over the same period last year.
Monthly Sales 3 (UF/m²) Jan 2011 2012 4.8 2013 4.9
1Q L8M L12M
Jan 5.5 6.4
Feb Mar Apr 5.8 6.3
6.0 7.0
Feb 6.1 7.1 6.9
Var 10% 10%
6.4
May Jun 6.6
6.8
Jul
Aug Sep Oct Nov Dec 5.5 5.2 5.5 5.5 13.2 6.3 6.0 6.1 5.4 6.4 14.4
During both the first quarter 2013 and L8M, the monthly sales showed a 10% growth over the same period of last year.
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UF/m2 (Retail sales/UF monthly closing)/Square meters
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Retail Margin (%)
The 3 month period showed an improvement of 3 percentage points in the retail gross margin, this growth was mainly driven by the increase of private labels share. Although the first quarter, is known for strong discount sales affecting the margin, this increase of 3 percentage points is key to achieve our Aconcagua goals. It is Important to remark that retail costs includes besides loss provisions, freight and all costs related to the distribution center, representing approximately 2% of sales.
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RETAIL COLOMBIA Retail Revenue Colombia ($ Billion)
6.3 5.0
2.12.4
1.9 0.9
Aug
1.5 0.9
Sep
2.1
1.5
2.7 1.5
1.4
Oct
Nov
L8M 2011 - 2012
Dec
Jan
1.8
Feb
1.8
2.0
Mar
L8M 2012 - 2013
The retail business revenues during the first quarter of 2013, compared to the same period of last year, grew by 22%, for a total amount of M$ 6,577
Same Stores Sales ($ Billion)
During the first quarter 2013, SSS showed a 12% drop compared with the same period of last year, this is mainly due to the remodeling of the most important store in terms of sales in Colombia. The remodeling of the store located in the shopping Centro Mayor in the city of Bogotรก, had a negative impact in first quarter sales, during this quarter the second and third floors remained close. Furthermore, in the last five months of 2011, 3 of the 4 stores were launched, comparable for SSS. During August, October and November of 2011 important sales discount were register due the opening of the stores.
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5. STORES Number of stores Chile Colombia
4Q 2011 42 4
4Q 2012 40 5
1Q 2012 43 4
1Q 2013 40 5
At the end of the first quarter 2013, La Polar has 40 stores. At the end of the same period of the previous year, the company had 43 stores in Chile. During 2012, the stores of Alameda, Irarr谩zaval and Concepci贸n-2 were closed. At the same time, on November 2012, La Polar opened its fifth store in Colombia, located in the shopping center Cacique in the city of Bucaramanga.
Selling space (m2) Chile Colombia
4Q 2011 160,700 20,700
4Q 2012 161,500 25,600
1Q 2012 159,100 20,700
1Q 2013 160,700 25,600
2,
At the end of the first quarter 2013, La Polar Chile reached to 160,700 m of selling space, small drop compared with December 2012, mainly due to the remodeling of Ahumada store.. At the same time, Christmas selling space and summer tents were closed in Rancagua, Maip煤 and Antofagasta. If we compared the selling space at the end of the first quarter of 2013 with same period of last year, we see an increase, even though three stores were closed, this was compensated by the opening of Curic贸 store during August.
Quarter revenues $/m2 Chile Colombia
4Q 2011 534,325 408,647
4Q 2012 600,125 388,242
1Q 2012 373,084 261,401
1Q 2013 418,963 256,914
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6. CREDIT BUSINESS INDICATORS FINANCIAL INCOME 1Q´13 Financial revenues (M$) Chile Colombia
15,664 989
1Q´12 15,328 969
% L8M´13-12 L8M´12-11 2% 2%
39,766 2,294
47,337 2,039
% -16% 12%
CHILE FINANCIAL BUSINESS Financial Revenues Financial revenues from Tarjeta La Polar (TLP) reached, for the first quarter 2013, M$ 15,664, 2% higher than revenues in the same period last year. Although the amount of loans grew in 30%, compared with the same period of last year, the effect in the accrued interest increase and therefore thus the financial revenues, will only be shown during the year and not yet during this quarter. Between July and December 2011, the company was banned from issuing new cards. Only on December 6, 2011 the company was authorized to issue new cards, but subject to significant restrictions, such as prohibition of use in associated stores, maximum credit terms below standard, among others. In summary, a number of restrictions that made the TLP non-competitive in the industry. Finally, on December 17, 2012, the SBIF released the above-mentioned restrictions on new credit cards. From this date on, the company can offer to its new customers, the TLP with a new package of benefits and conditions, such as the use in associated stores and cash advances among others. The TLP is again a competitive card in the market.
FINANCIAL INDICATORS 2011
Loans (Billion $) Stock of provisions (Billion $)
4 5
Number f credit cards with debt (Th.) Number of credit cards issued (Th.)
6
2012
2013
4Q´11
1Q´12
2Q´12
3Q´12
4Q´12
1Q´13
144
117
110
102
114
111
32
21
19
15
13
14
547
483
469
453
477
453
1,160
1,147
1,139
1,132
1,144
1,149
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1Q 2012 Stock of provisions does not include M$5,200 additional provisions added to uncollectable provisions as part of the SERNAC agreement. 5 Number of credit cards with debt, the amount in 4Q press release was modified according to 4Q12 financial statements 6 Number of credit cards issued are recorded at the end of each month, clients with signed contract and without write-off
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Loans (Billion $)
Sales (TLP +VAT)
52 40
1Q´ 2012
2013
During the first quarter, loans reached $111 billion. It is important to remark that the normal portfolio reached to $ 92.3 billion, 19% higher than the same period of last year. Sales with credit card plus VAT (amount of loans), reached during the first quarter of 2013 $52 billion, 30% higher than the same period of last year. This increase is mainly explained by the 13% growth in retail sales in the first quarter 2013, with the same percentage of credit card sales, and also due to the increase in cash advances and cash loans, thanks to the release of all the restrictions to the credit card. The current portfolio has a normal behavior of indebtedness. The average debt of our customers is close to $ 247,000.
% OF SALES WITH CREDIT CARD
2011 2012 2013
1Q
2Q
3Q
45% 45%
50%
49%
4Q 50% 49%
L8M 48% 48%
The percentage of sales with the credit card remained almost unchanged for the first quarter 2013 in 45%.
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CREDIT CARDS WITH DEBT (Th.)
477
547 453
DEC´12 MAR´13
483
DEC´11 MAR´12
The number of credit cards in the first quarter 2013 reached 453 Th. Due to seasonal factors of the business, it is normal to see a decline between December and March, however we can remark that between December 2011 and March 2012 the number of credit cards with debt declined 12%, meanwhile between December 2012 and March 2013 this decline was only 5%.
NUMBER OF CUSTOMERS BUYING7 (Th.) 261 237 160 131 116
134
149
157
162
157 155 157
145
166
136
157
The amount of single customers buying showed an important growth during the first quarter, only in March the increase was 20%.
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Single Costumers buying with credit card each month (not accumulated), with just one ID, this means that a costumer that buys more the once is consider just one time
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LOAN PORTFOLIO INDICATORS – GROSS LOANS (%) 27%
23%
18%
17%
48%
41%
34%
73%
82%
83%
52%
66%
77%
59%
SEP´11
DEC´11
MAR´12
JUN´12
SEP´12
DEC`12
MAR´13
Normal
Renegotiated
A major event in the stabilization of the credit business has been the growth in “normal” loans (decrease in renegotiated loans). Normal loans reached 83% of the total portfolio, much higher than the 66% of March 2012. This is driven by the company's strategy to reduce the percentage of renegotiated loans in the portfolio. The company has worked on improving the quality of information by segments of customers. We have also increased credit lines for clients with low risk. On the other hand, we have reduced the credit facilities for higher risk portfolios and we have implemented incentives to customers in early stages of overdue.
LOAN PORTFOLIO INDICATORS – PORTFOLIO BY AGING SEGMENTS
There is a decrease in the 91-180 day overdue segment compared with the same period of last year, reducing its weight in the total amount from 8% to 6%. It is important to remark the seasonal effect of December, were an increase of current customers can be observed. The latter is explained by the common payment behavior of customers, who free up their credit lines for holiday shopping.
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TOTAL RISK RATE8
33.0%
21.9% 18.2%
SEP´11
DEC´11
MAR´12
17.0%
JUN´12
14.8%
SEP´12
11.6%
12.3%
DEC´12
MAR´13
The portfolio during the first quarter showed an increase in the higher overdue segment compared with December 2012. This behavior is common for this period of the year, with a slight impact in the total risk rate. Nevertheless, compared with the same period of last year, the risk rate showed a decrease, mainly due to the write-offs in the renegotiated portfolio and the better quality of the current book. As of March 31, 2013, the risk rate reached 12.3%, an amount that is considered a normal level, a 6 percentage point lower than March 2012. The decrease in the risk rate is due to a better management of credit lines, based on payment behavior and improved segmentation systems. In summary the implementation of the proper policies of credit and collection.
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Risk Rate: Ratio of provisions stock and gross loan portfolio
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FINANCIAL BUSINESS COLOMBIA Financial Revenues First quarter 2013 financial revenues from the credit card reached M$ 989. This is 2% higher than the revenues for the same period of last year.
Financial Indicators 2011 4Q´11
2012 2Q´12 3Q´12
4Q´12
2013 1Q´13
1Q´12
Loans (Billion $)
7.7
7.7
7.6
6.5
8.5
7.9
Stock of provisions (Billion $)
0.8
0.9
1.0
0.8
0.7
0.8
Number of credit cards issued (Th.)
74
84
86
87
98
102
Loans (Billion $)
7.7
7.7
7.6
DEC´11
MAR´12
JUN´12
4.6
SEP´11
8.5
7.9
DEC´12
MAR´13
6.5
SEP´12
Normal
TOTAL RISK RATE 13.8% 11.9% 10.1%
11.9%
10.3% 8.6%
SEP´11
DEC´11
MAR´12
JUN´12
SEP´12
DEC´12
9.9%
MAR´13
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7. EBITDA EBITDA CHILE (M$) Retail 1Q 2013 1Q 2012 67,327 59,358 15,426 11,910
EBITDA Chile M$ Revenues Gross margin % Gros s ma rgi n
SG&A w/o depreciation % Revenues
EBITDA % Revenues
EBITDA w/o non-recurring % Revenues
Financial 1Q 2013 1Q 2012 15,664 15,328 7,540 (18,764)
Consolidated 1Q 2013 1Q 2012 82,991 74,686 22,966 (6,854)
23%
20%
48%
-122%
28%
-9%
(19,164)
(18,864)
(6,677)
(5,779)
(25,841)
(24,643)
-28%
-32%
-43%
-38%
-31%
-33%
(3,737)
(6,918)
951
(22,868)
(2,787)
(29,786)
-6%
-12%
6%
-149%
-3%
-40%
(3,737)
(5,163)
951
(1,648)
(2,787)
(6,811)
-6%
-9%
6%
-11%
-3%
-9%
Note: Cost of goods sold of the financial segment during first quarter 2012, include non-recurring provision for a total amount of M$21,220 due to the agreement reached with SERNAC and Fundaci贸n Chile Ciudadano which was communicated to the market on May 23 2012. Also in 2012 and 2013, cost of goods sold of the financial segment include financial interests which are not consider in the EBITDA.
EBITDA for the first quarter 2013 was -3% of revenues, compared to -9% without non-recurring expenses during the same period of last year. This result is due mainly to the increase in sales and retail margin together with an important increase in the financial margin explained by the lower risk rate and less provisions during the year. Together with lower % of costs over revenues, improves the EBITDA over the same period of last year. The main costs reductions are related to salaries and severance. Although the level of expenses was similar, it represents a lower percentage of sales. Additionally, advisors expenses decrease in more than 60%, reducing its share as a % of sales. Analyzing both segments, EBITDA retail shows an important increase in EBITDA margin, reducing the gap to a positive level. On the other hand, the financial business, that for its nature is less seasonal, starts the first quarter with a positive result.
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COLOMBIA EBITDA (M$)
EBITDA Colombia Revenues Gross Margin % Revenues
SGA w/o depreciation % Revenues
EBITDA % Revenues
EBITDA w/o recurring % Revenues
Retail 1Q 1Q 2013 2012 6,577 5,411 719 340
Financial 1Q 1Q 2013 2012 989 969 229 (641)
Consolidated 1Q 1Q 2013 2012 7,566 6,380 947 (301)
11%
6%
23%
-66%
13%
-5%
(2,910)
(1,610)
(1,125)
(758)
(4,036)
(2,368)
-44%
-30%
-114%
-78%
-53%
0%
(2,192)
(1,715)
(850)
(954)
(3,042)
(2,669)
-33%
-32%
-86%
-98%
-40%
-42%
(2,192)
(1,715)
(850)
(954)
(3,042)
(2,669)
-33%
-32%
-86%
-98%
-40%
-42%
During first quarter 2013 EBITDA in Colombia reached to -40% of revenues. It is important to remark that during the first quarter, we began the remodeling of the most important store in terms of sales in Colombia, reducing first quarter sales. This result is also part of the ramp up stage of our Colombian project. The Colombia project has so far only a third of the stores considered in the investment plan presented by the new management. It becomes evident that it is necessary to increase the scale of the Colombian operation. As part of the CAPEX program for the year 2013, we expect tow store openings in the cities if Yopal and Palmira.
CONSOLIDATED EBITDA (M$) Retail EBITDA Revenues Gross Margin % Revenues
SGA w/o depreciation % Revenues
EBITDA % Revenues
EBITDA w/o recurring % Revenues
1Q 2013 73,904 16,145
1Q 2012 64,768 12,251
22%
19%
Financial 1Q 1Q 2013 2012 16,652 16,297 7,768 (19,406) 47%
(22,074) (20,474) (7,802)
-119%
(6,537)
Consolidated 1Q 1Q 2013 2012 90,557 81,066 23,913 (7,155) 26%
-9%
(29,877) (27,011)
-30%
-32%
-47%
-40%
-33%
-33%
(5,929)
(8,633)
100
(23,821)
(5,829)
(32,454)
-8%
-13%
1%
-146%
-6%
-40%
(5,929)
(6,878)
100
(2,601)
(5,829)
(9,479)
-8%
-11%
1%
-16%
-6%
-12%
EBITDA Margin for the first quarter 2013 reached -6%, 6pp better that the same period last year, without non-recurring expenses.
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8.
FINANCIAL STATEMENTS OF EMPRESAS LA POLAR S.A. – IFRS9
a. Consolidated Income Statement For the 3 month period 31-mar-13 M$
For the 3 month period 31-mar-12 M$
Revenues Cost of sales Gross Profit
90,557 (66,643) 23,913
81,066 (88,220) (7,155)
Distribution costs Administrative expenses Other profit (loss) Financial income Financial costs Foreign currency exchange differences Profit (loss) from inflation-indexed assets and liabilities Profit (loss) before taxes Benefit (loss) income tax Profit (loss)
(369) (31,404) (69) 1,852 (3,857) (425) (34) (10,393) 2,265 (8,128)
(346) (28,466) 2,216 831 (3,211) 473 (35) (35,693) 826 (34,867)
(8,128)
(34,867)
(8,128)
(34,867)
(272) 54 (217) (8,345) 0 0 (8,345) 0 (8,345)
342 (68) 274 (34,593) 0 0 (34,593) 0 (34,593)
Profit (loss) attributable to: Owners of parent company Non-controlling interests Profit (loss) Profit (loss) from exchange operations Income tax exchange differentials Subtotal Other profit Profit (loss) Profit (loss) attributable to: Owners of parent company Non-controlling interests Net income
9
As of 1Âş of March 2013, IFRS are readopted as accounting principles generally accepted.
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Revenues Revenues for the 3 months period ended on March 31, 2013, amounted to M$90,557, a 12% increase over the same period last year. This was mainly due to the increase in sales of private labels.
Cost of Sales Cost of sales, for the 3 months period ended 31 March 2013 amounted to M$(66,643), an improvement of 25% over the same period last year. Cost of sales for the first quarter 2012 includes the provision made during March 2012 for M$ 21,220, due to the SERNAC agreement, which was communicated to the market on 23 May 2012.
Sales, General and Administrative (SG&A) expenses and Distribution Costs SG&A expenses and distribution costs for the period ended on March 31, 2013, amounted to M$ (31,774), which represents 35% of total revenues.
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b. Consolidated Balance Sheet 31-mar-13 M$
31-mar-12 M$
31-jan-12 M$
Current Assets Cash and cash equivalents Other current financial assets Other current non financial assets Current trade and accounts receivables Inventory Tax assets Total current assets
5,795 109,087 12,841 95,881 61,586 18,987 304,177
8,410 9,192 17,492 81,198 51,082 15,795 183,169
13,126 21,861 8,499 105,680 44,150 15,444 208,760
Non-current Assets Other non-current financial assets Other non-current assets Intangible assets other tan goodwill Properties, plant and equipment deferred tax assets Total non-current assets
16,405 288 19,489 69,615 9,009 114,807
22,672 277 17,219 67,944 14,905 123,016
26,041 246 17,189 68,621 13,953 126,050
418,984
306,185
334,811
Current Liabilities Other current financial liabilities Current trade and other accounts payable Other current provisions Current tax liabilities Employee benefits provisions Other current non-financial liabilities Total current liabilities
17,754 74,637 17,100 1,467 5,552 760 117,270
472,946 58,164 17,283 919 4,326 764 554,400
469,790 67,621 1,281 758 5,832 2,942 548,223
Nom-current Liabilities Other non-current financial liabilities Deferred tax liabilities Total non-current liabilities Total Liabilities
178,682 40,266 218,948 336,218
5,798 8,587 14,386 568,786
5,820 8,775 14,595 562,818
302,678 (239,388) 19,477
171,947 (453,656) 19,108
171,947 (418,789) 18,834
82,766
(262,601)
(228,008)
82,766
(262,601)
(228,008) 334,811
Total Assets
EQUITY Issued capital Retained earnings Other reserves Equity attibutable to Owner of the parent company Non-controlling interest Total Equity Total Liabilities and Equity
418,984
306,185
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ASSETS The Total Assets as of March 31, 2013 amounted to M$418,984. The M$112,799 increase in the level of assets is mainly due to the increase in current assets by M$121,008. This is explained by the increase in Other Current Financial Assets in M$99,892, due to investments in mutual funds, 97% belongs to Chile.
Indicators
Current ratio Acid ratio
Unit Times Times
Mar´13 2,59 2,07
Dec´12 2,54 2,15
Sep´12 0,31 0,22
Jun´12 0,33 0,24
Mar´12 0,33 0,24
Dec´11 0,38 0,30
The improvement in the current ratio as of March 2013 compared to December 2012 is mainly explained by the decrease in current liabilities. At the same time, the acid ratio decreased by 4%, due to the increase in the level of inventories.
Inventory turnover Inventory turnover
Unit Times Days
Mar´13 4 81
Dic´12 5 69
Sep´12 4 81
The number of days of Inventory turnover increased by 12 days as of March 2013 compared to December 2012, this is common for this period of the year.
Average collection period
Unit Days
Mar´13 175
Dic´12 197
Sep´12 159
The average collection period decreased as of March 2013 compared to December 2012 this is mainly explain by the decrease in loans, due to seasonal normal effect of December, where the portfolio increased during Christmas shopping.
Economic Value of Assets The market value of the La Polar S.A. shares as of March 28, 2013 was $ 191.97 per share. On the same date, the total number of shares fully subscribed and paid were 998,617, 522 (number of shares including the capital increase in October, where 750,000,000 shares were subscribed), which implies a market capitalization of B$ 191.7
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LIABILITIES Total liabilities as of March 31, 2013 amounted to M$ 336,218. The M$(232,568) decrease in the level of Liabilities is mainly explain by the net decrease in current liabilities in M$(437,130), and the increase in non-current liabilities in M$204,562. This is explained by the financial debt recalculation, which implied a decrease in short term financial liabilities and interest profit. The above mention changed the financial debt structure.
Indicators Indicadores Current liabilities Non- current liabilities
Unit % %
Mar´13 34.9% 65.1%
Dec´12 37.0% 63.0%
Sep´12 97,3% 2,7%
Jun´12 97.4% 2.6%
Mar´12 97.5% 2.5%
Dec´11 97.4% 2.6%
Current Liabilities, as of March 31, 2013, represent 34.9% of total liabilities.
Financial debt to EBITDA
Mar´13 -7.4
Dec´12 -3.6
Sep´12 -9.0
The variation in the ratio is explained by, while financial liabilities remain at the same level between December 2012 and March 2013, annualized EBITDA improved in 50%, although remains negative.
Average payment period
Unit Days
Mar´13 73
Dec´12 80
Sep´12 65
The drop is due to the decrease in accounts payable by 2%. 10
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Note Indicators Definition Average collection period (days): (net receivable accounts /sales TLP + annualized stamp tax ) x 360 days Average payment period (days): ( payable accounts / annualized suppliers payments) x 360 days Inventory turnover (days): annualized costs of products / average inventory x 360 days Margin EBITDA: EBITDA / retail sales Financial debt to EBITDA: Total Financial Liabilities / EBITDA Sales UF/m2= (Retail sales/UF monthly closing date) Annualized indicators are compared with September 2012, because the SVS authorized the Company to file consolidated financial statements to December 31, 2011, with comparative statement of financial position as of 31 July 2011, only 5 months.
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Cash Flow Statements For the 3 month period 31-mar-13 M$ Cash flow from (used in) operating activities Proceeds from sales of goods and providing services Payment to suppliers for supplying goods and services Payment to and account of employees Other payments for operating activities Interest received Income taxes refunded (paid) Net cash flow from operating activities Cash flow (used in) investing activities Proceeds from disposal of property, plant and equipment Addittions to property, plant and equipment Addittions to intangible assets Other cash flow Net cash flow from (used in) investments activities
For the 3 month period 31-mar-12 M$
112,232 (102,728)
109,618 (81,019)
(16,180) (18,621) 1,776
(14,656) (20,482) 745
(23,521)
(5,794)
(1,671) (77)
(1,403) (679)
26,009 24,261
692
2,773
Cash flow (used in) financing activities Proceeds from short term banks Total proceeds from loans Loan payments Payments of financial lease liabilities Net cash flow from (used in) financing 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
2,647 (2,121) (276)
2,647 (2,091) (171)
(2,398)
385
(1,658)
(4,717)
7,453
13,126
5,795
8,410
During the period the net cash flow equivalent was M$(1,658). This amount breaks down as follows: Operating activities produced a negative cash flow M$(23,521), mainly explained by liabilities acquired during last year and paid during the first quarter 2013. The increase in payment to suppliers in the first quarter 2013 compared with the same period last year is mainly explain by the restrictions to credit the company faced during the first quarter 2012. Investing activities produced a positive cash flow of M$ 24,261, as a result of the sellout of financial instruments. Financing activities produced a negative cash flow of M$(2.398), during the first quarter 2013 the company didn’t acquired financial loans, unlike the first quarter 2012 in which the company took a long term loan, we didn’t received cash incomes but we paid loans and leasing.
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Cash Flow Statement by geographic segment For the 3 month period CHILE 31-mar-13 M$ Cash flow from (used in) operating activities Cash flow (used in) investing activities Cash flow (used in) financing 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
COLOMBIA 31-mar-13 M$
(20,185)
(3,336)
21,275
2,986
(2,398)
0
(1,308)
(349)
5,768
1,685
4,459
1,336
Regarding Colombia, it didn´t executed financing activities during first quarter 2013.
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