Nueva Polar Corporate Presenta0on ITAU San0ago January 2014
CONTENTS ü Company Overview ü Company Strategy ü Financial Highlights
www.nueva-polar.cl www.nuevapolar.cl
2
Our Opera0ons Colombia Retail Sales LTM 3Q USD 55M Employees
836
Stores
6
Total Sqm
28,000
Chile Retail Sales LTM 3Q USD 630 M Employees
7,136
Stores
40
Total Sqm
160,500
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La Polar in the Chilean Retail Industry ü Established in 1920, the brand has been present in the Chilean market for almost a century.
ü Renewed consumer confidence, as the number of customers buying in our stores in Chile has increased by 16% this year.
ü Same Store Sales con0nues to grow over 2 digits, increased by 12%.
ü Brand valued by our customers as we have sucessfully regained the 10% of market share. Retail Market Share – 3Q
Sales per square meter (USD$) – 3Q Number of stores 3Q-‐2013 42 1,945
1,975 41
77 1,077
1,204
1,177
855
Falabella
Total sqm
270,381
Cencosud
371,891
Ripley
2013
Source: Earninngs Report 3Q-‐2013: Falabella, Hites, Cencosud and Ripley
914
Hites
258,212
40
15
1,205
92,417
821
910
La Polar
160,500
2012
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Last 4 Quarters: A Turnaround story… ü Same Store Sales (CLP Billion$)
ü Retail Gross Margin
+15%
95
+16%
+15%
+12% 78
66 83
20%
67
57
4Q´11 4Q
72 64
1Q 2012
ü % Provision for NPLs
2Q
3Q
23%
1Q
24%
28% 19%
2Q
3Q 2012
2013
23%
21%
25%
9M
2013
2012 c on intereses y depreciaciones
ü EBITDA Margin LTM
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CONTENTS ü Company Overview ü Company Strategy ü Financial Highlights
www.nueva-polar.cl www.nuevapolar.cl
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Aconcagua Plan Strategic Goals for 2014
2014
Sep-‐13 LTM
USD/sqm % % of Retail Sales % of Retail Sales
450 30%
327 27%
55% 30%
56% 29%
Credit Card Business Financial Revenues NPLs Sales with credit card
% of Retail Sales Provision/Loans
30% 12% 50%
21% 8,3% 49%
Operating SG&A EBITDA Margin
% of Retail Sales
30% 10%
36% 1,1%
Retail Monthly Retail Sales Retail Direct Margin Apparel, Shoes & Accesories Private Labels
% of Retail Sales
% of Retail Sales www.nuevapolar.cl
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3 Strategic Drivers
1 SALES GROWTH
Sales Growth
2
MARGIN IMPROVEMENT > 10% EBITDA Margin
2
3
CUSTOMER B ASE Improve IRNCREASE etail Increase Margin Customer Base
3
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1
SALES GROWTH 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 Beber Store Layout
• Furniture specially designed to load more products • Store remodeling 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 Improve Retail Margin
Experienced team: People who know the Credit Card Business
3 Increase Customer Base
35732
25.425
Abract New Premium Customers
21.355
22.179
22.913 17.700
17.715 9.780
Jan
11.176
10.737
Feb
Mar
11.340
Apr
New Credit Card Holders 2013
11.697
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
New Products and Innova0ve Technology • • • •
Cash Advances & Cash Loans Associated Stores Visa/Mastercard Fingerprint payment
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Sales Growth
> 10% EBITDA Margin Improve Retail Margin
3 Increase Customer Base
Total Stock $115
Total Stock $178
21 22
Increase Loans Porholio • •
158
93
Reach CLP 170b by 2013 and CLP 205b by 2014
DEC´12 Normal
DEC´13 Renegociated
Further reducing the NPLs 26,2%
DEC´11
22,6%
MAR´12
www.nuevapolar.cl
19,1%
JUN´12
16,1%
SEP´12
12,4%
DEC´12
12,9%
MAR´13
10,8%
JUN´13
8,3%
SEP´13
8%
7,6%
DEC´13
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CONTENTS ü Company Overview ü Company Strategy ü Financial Highlights
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EBITDA 9M 2013 EBITDA Chile Retail 9M 2013 9M 2012 221,578 196,834 54,937 41,827
EBITDA Chile in CLP M$ Revenues Gross Margin % R evenues
SG&A w/o depreciation % R evenues
EBITDA % R evenues
Financial 9M 2013 9M 2012 51,836 43,163 31,409 (8,082)
Consolidated 9M 2013 9M 2012 273,414 239,997 86,346 33,745
25%
21%
61%
-‐19%
32%
14%
(59,551)
(56,161)
(22,388)
(20,155)
(81,959)
(76,315)
-‐27%
-‐29%
-‐43%
-‐47%
-‐30%
-‐32%
(4,635)
(14,240)
10,831
(23,191)
6,196
(37,431)
-‐2%
-‐7%
21%
-‐54%
2%
-‐16%
Consolidated EBITDA 9M EBITDA Consolidated
9M´13
Chile 9M´12
273,414 239,997 Revenues (CLP M$) Gross Margin 32% 14% -‐32% SG&A w/o depreciation -‐30% EBITDA 2.3% -‐15.6%
Var %
Colombia 9M´13 9M´12 Var %
Consolidated 9M´13 9M´12 Var %
14%
21,470
19,208
12%
294,884 259,205
na
15%
-‐4%
na
30%
13%
na
-‐6%
-‐57%
-‐45%
27%
-‐32%
-‐33%
-‐3%
na
-‐40.8%
-‐49.3%
-‐17%
-‐0.9%
-‐18.1%
na
14%
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Summarized Balance Sheet – September 2013 Figures in Million USD
Assets
Liabilities
Current Assets Cash & Equivalents Inventory Short Terms Receivables Other
494 87 125 224 58
211 57 116 18 20
Current Liabilities Short Terms Financial Liabilities Trade Payables Provisions Other
Non-‐Current Assets Long Term Receivables Fixed Assets Others
341 59 144 138
485 347 138
Non-‐Current Liabilities Long Terms Financial Liabilities Others
139
Equity
Total
835
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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
CASH FLOW
A nnual F in. E xpens es
48
52
54
56
58
58
56
First 5 years net payments are 2-‐4% of the total Income www.nuevapolar.cl
54
48
30
24
28
63 17
Appendix
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Where do we come from
Aconcagua Plan June 2013: We repurchased of 26% of the Junior Bond October 2012: US$280 mill capital increase
May 2012: Agreement with Chile´s Consumer Protec0on Agency (SERNAC, Ac0on Class) November 2011: Seblement 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 www.nuevapolar.cl
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Corporate Governance: Commibed Board of Directors Georges de Bourguignon A., Vice-‐chairman Alberto Marraccini V. , Director Juan Pablo Vega W., Director Jorge Id S., Director
Aldo Moba C., Director Bernardo Fontaine T., Director
César Barros M.
Chairman of the Board
Controller ü Control and transparency ü Reports directly to the Board ü 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
Commibee
Audit
Gino Manríquez Controller
Risk
Retail
Colombia
Finance
Fraud Preven0on
César Barros M. Georges de Bourguinon A.
Alberto Marraccini V.
ü
ü
Jorge Id S.
ü
ü
ü
Juan Pablo Vega W.
ü
ü
ü
ü
Bernardo Fontaine T. Aldo Moda C.
ü ü ü
ü
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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 Execu0ve 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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www.nueva-polar.cl www.nuevapolar.cl
For all our investors informaeon please visit:
www.nuevapolar.cl
Contact Info: Felipe Contesse Head of Investor Rela0ons +56 2 2383 3313 ir@lapolar.cl
Disclaimer: This presentaeon contains forward-‐looking statements which reflect management's best judgment based on factors currently known but involve significant risks and uncertainees. 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 Presenta0on ITAU San0ago January 2014