Press 2q15 ingles final by Nueva Polar

2 1.

Highlights 2Q 2015

Consolidated Income Statements

Retail Business Indicators

Stores

Financial Business Indicators

Financial Statements La Polar S.A. - IFRS

Consolidated income statements by function

Consolidated Balance Sheet

Cash Flow

Annex

Notes:  Quarters are named as: 1Q, 2Q, 3Q, 4Q accordingly  Semesters are named as: 1H, 2H accordingly and 12M for year to date  Calendar years are named LTM (Last twelve months)  Currency symbols: CLP $ for Chilean Pesos, US $ U.S. Dollars, M Millions, B Billions

Highlights 2Q 2015

 By the end of the second quarter of 2015, there is a positive EBITDA of CLP $B 1.9, which offset the decline in the first quarter and thus an accumulated breakeven EBITDA for the first half of 2015. This was accomplished in a very competitive environment under adverse macroeconomic conditions.  Continuing the trend seen in the first quarter, the company continues the second quarter with a significant improvement in sales and administrative expenses, achieving a reduction of 12.6% over the same period of 2014. This is the result of an extensive savings plan, which included the reduction of executive staff and back office in stores, the closure of two stores in 2014 and a reduction in other expenses to company level. In the 2Q15, we continued with the implementation of self-service model, adapting to the competitive environment with 35 stores fully operational under this model.  The retail segment ended the second quarter of 2015 growing 210 basis points in its gross margin compared to the same period last year. This increase responds to the optimization of product mix with a special emphasis on private labels, which came to represent 39% of total sales versus 35% last year. There was also an improvement in inventory control allowing a decrease in product sales. Thus, although revenue fell by 6.3% getting CLP B$ 77.6 the contribution margin ended at 0.2% over the same period last year, with CLP $B 24.3 compared to CLP B$ respectively. SSS of the 2Q of 2015 was -4.1% attributed mainly to lower product sales in hard lines of a high base of comparison associated with sales related to the World Cup in May and June 2014.  An increase of 2.3% was observed in the financial business revenue over the first quarter of 2015, with CLP $B 17.8 this quarter compared to CLP $B 28.4 in the 1Q of 2015. There is a stable trend in the financial business indicators throughout 2015, which can be seen in a moderate growth in the loans portfolio and customers with balance. This has led to a steady evolution of both the financial income as indicators of risk in the portfolio.  On April the 24th of 2015, it was held at the headquarters of La Polar the ordinary shareholders' meeting in which the withdrawal and choice of directory was treated, being chosen the following candidates: a. b. c. d. e. f. g.

Jorge Id Sánchez Bernardo Fontaine Talavera Juan Enrique Vilajuana Rigau Pedro Pellegrini Ripamonti Richard Urresti Gundlach Cristobal Hurtado Rourke Alberto Sobredo del Amo (Independent)

 On May the 8th of 2015, it was agreed to designate as President of the company Mr. Juan Enrique Vilajuana Rigau and as vice president Mr. Jorge Id Sanchez. They also were appointed as members of the Board of Directors, Jorge Id Sanchez, Pedro Alberto Pellegrini Ripamonti and Alberto Sobredo del Amo as chairman of that committee.

 On May the 26th of 2015, the Company from the General Treasury of the Republic, a refund for the AT 2014 under the temporary payments for earnings absorbed (PPUA), of CLP $B 9.0. Additionally, on May the 28th of 2015, subsidiaries of the Company, Inversiones SA, Collect SA, Agencia de Publicidad Conexion SA y Operadora y Administradora Nueva Polar SA, together received from the General Treasury of the Republic, returns for the AT 2015 under the temporary payments for earnings absorbed (PPUA), amounting to a total of CLP $B 2.8. All these returns had been considered in previous “Recoverable Taxes” and therefore had no effect on the outcome.

 On May the 16h of 2015 the store located in the city of Copiapo, was affected by a fire. Currently work is underway to reopen the store. La Polar has committed insurance for the property as well as for the merchandise that was in shops and business interruption loss. 

Conversion of H Bonds into shares:

Summary of H Bonds coverted into shares at June 30 of 2015:

N° of Shares 06-02-2015

Shares 30-06-2015

New Shares

H Bonds ( eq Shares) not converted 30-06-2015

998,617,522

1,454,422,879

455.805.357

1.541.419.687

On the 30h of June of 2015 455,805,357 shares have been converted through H Bonds, equivalent to a 46% of growth over the initial shares on the 6th of February of 2015. At the end of these financial statements (September 11, 2015) the new shares totaled 535,385,780 and a remaining to convert from H Bond that are equivalents to 1,461,839,624 shares that represent 48.8% of the total potential shares.1

Total number of potential shares: 2,995,842,926 (sum of initial actions, bonds converted into shares and to be converted)

5 2.

Consolidated Income Statements

P&L 2Q 2015. CLP $ B Revenues Costs Gross Margin % Revenues SG&A (w/o depreciation) % Revenues EBITDA % Revenues Depretiation Operating Income Non - Operating Income Profit (Loss) Before Taxes Benefits (Expenses) Income Tax Profit (Loss)

2Q 2015 94.2 (60.1) 34.1 36.2% (32.1) -34.1% 1.9 2.1%

Consolidated r -6.1% -3.8% -12.6%

(2.6) (0.6) (3.3) (3.9) 0.5 (3.4)

2Q 2014 100.4 (64.9) 35.4 35.3% (36.8) -36.6% (1.3) -1.3%

2Q 2015 77.6 (53.3) 24.3 31.3% (25.1) -32.3% (0.8) -1.1%

Retail r -6.3% 0.2% -11.7%

2Q 2014 82.8 (58.6) 24.2 29.2% (28.4) -34.3% (4.2) -5.1%

2Q 2015 17.8 (7.1) 10.8 60.3% (8.0) -44.8% 2.8 15.5%

Financial r 2Q 2014 -6.3% 19.0 (6.6) -13.3% 12.4 65.2% -16.1% (9.5) -50.0% 2.9 15.2%

1H 2014 155.8 (113.5) 42.3 27.1% (52.5) -33.7% (10.2) -6.6%

1H 2015 35.2 (13.5) 21.7 61.7% (16.4) -46.6% 5.3 15.1%

Financial r 1H 2014 -9.9% 39.1 (12.5) -18.4% 26.6 68.1% -15.9% (19.5) -49.9% 7.1 18.2%

(2.0) (3.3) (7.5) (10.8) (1.0) (11.8)

P&L 1S 2015. CLP $ B Revenues Costs Gross Margin % Revenues SG&A (w/o depreciation) % Revenues EBITDA % Revenues Depretiation Operating Income Non - Operating Income Profit (Loss) Before Taxes Benefits (Expenses) Income Tax Profit (Loss)

1H 2015 178.9 (116.3) 62.7 35.0% (62.7) -35.0% 0.0 0.0% (4.4) (4.4) (7.6) (12.0) 2.7 (9.3)

Consolidated r -6.8% -6.0% -10.2%

1H 2014 192.0 (125.3) 66.7 34.7% (69.8) -36.3% (3.1) -1.6% (3.8) (6.8) (14.1) (21.0) (0.4) (21.4)

1H 2015 146.2 (103.3) 42.9 29.3% (48.2) -32.9% (5.3) -3.6%

Retail r -6.1% 1.3% -8.3%

6 3.

Retail Business Indicators

2Q´14

3Q´14

4Q´14

1Q´15

2Q´15

82,811

69,605

100,134

68,578

77,601

2Q´14

2Q´15

82,811

77,601

-6%

Retail Revenues (CLP $ M)

LTM 2Q14

LTM 2Q15

Retail Revenues (CLP $ M)

-1,7%

335,412

315,918

-1,3%

-1.3%

-6%

Retail Revenues LTM

-1.6%

Revenues (CLP $B) 335

2Q 14

330

3Q 14

325

321

4Q 14

1Q 15

316

2Q 15

The retail revenues over the last 12 months have decreased 1.6% over the previous quarter, explained entirely by a decrease in the sale of hard lines, which as previously mentioned it is partly due to the restriction lines of credit that affect the product mix.

Retail Margin % LTM

28,8%

28,3% 27,8% 26,7%

2Q 14

26,9%

3Q 14

4Q 14

1Q 15

2Q 15

Sales UF/ sqm

2014

6.4

7.2

5.9

8.4

2015

5.8

6.6

Var %

-10%

-9%

Stores 2014

Number of Stores Sales Surface (Thousands sqm) Revenues ( Th. $ /sqm)

2015

40 161,500 452

40 160,700 515

38 159,700 436

38 159,000 630

38 159,000 431

38 157,000 494

8 5.

Financial Business Indicators

2Q´14

3Q´14

4Q´14

1Q´15

2Q´15

19,018

16,902

16,606

17,426

17,817

2Q´14

2Q´15

19,018

17,817

-6%

U12M 1Q15

68,751

-12%

Financial Revenues (CLP $ M)

U12M 1Q14 Financial Revenues (CLP $ M) 78,370

Financial Revenues LTM -1,4%

-6,0%

Revenues (CLP $B)

-3,7%

-1,7%

2Q 14

3Q 14

4Q 14

1Q 15

2Q 15

Revenues decreased 6% compared to the same period last year, which is mainly explained by a lower average portfolio.

Financial Margin % LTM

72% 67% 63%

2Q 14

3Q 14

4Q 14

61%

59%

1Q 15

2Q 15

Financial Indicators

2014 FINANCIAL BUSINESS

2015

1Q´14

2Q´14

3Q´14

4Q´14

1Q´15

2Q´15

Credit Card Loan Stock (CLP $ B)

163

153

133

144

136

141

Provision for loan losses (CLP $ B)

% Provision for loan losses

9.1%

9.9%

10.4%

10.3%

10.8%

11.3%

Net loan losses ( CLP $ B)

Open accounts w/balance (Th.)

508

524

492

531

509

526

Average Debt (CLP $ Th.)

322

292

271

268

49.2%

56.0%

52.5%

51.4%

49.7%

56.5%

% of sales with credit card

10 Credit Card Loans (CLP B$)

Credit Card Loan Portfolio (CLP B$)

126

118

JUN´14

JUN´15

2Q´

2014

2015

Normal

Renegociated

Loans rose by 12% in the second quarter versus the same period last year. The total portfolio decreased by 6% over the previous year and increased by 2% over the first quarter 2015.

Risk Rate 26.2% 22.7% 19.1%

16.1% 12.4%

12.9% 10.8%

8.3%

7.9%

9.1%

9.9%

11,3%

10.4% 10.3%

DEC´11 MAR´12 JUN´12

SEP´12 DeC´12 MAR´13 JUN´13

SEP´13 DEC´13 MAR´14 JUN´14

10,8%

SEP´14 DEC´14 MAR´15 JUN´15

While the risk rate has experienced a rise during 2015, this level of provision at the end of the second quarter of 2015 is considered appropriate limit for the segment in which the company operates. While it is important to note that there is a lower proportion of customers renegotiated 16% versus 18% compared with the same period last year and a greater proportion of current customers with 77% versus 75% respectively.

Loan Portfolio Indicators – Gross Loans (%)

29% 44%

19%

17%

15%

13%

12%

81%

83%

85%

87%

88%

14%

18%

20%

18%

15%

16%

86%

82%

80%

82%

85%

84%

37%

71% 56%

24%

76%

63%

Normal

Renegociated

Loan Portfolio Indicators – Portfolio by aging segments 7,4% 7,3% 10,3%

6,8% 6,8% 9,7%

91 to 180

31 to 90 74,9%

76,7%

01 to 30 Current

JUN´14

JUN´15

Financial Statements of La Polar S.A. - IFRS

Complete Financial Statements of Empresas La Polar S.A are available on the website of the Securities and Insurance Supervisor (www.svs.cl) and the website of Empresas La Polar, www.nuevapolar.cl

a. Consolidated Income Statements

Revenues

30-jun-15

30-jun-14

CLP $ M

178,941

192,012

Cost of Sales

(116,256)

(125,579)

Gross Profit

62,685

66,432

Distribution Costs

(712)

(986)

(66,369)

(72,561)

Other Profit (Loss)

(1,351)

686

Financial Revenue

450

325

(6,569)

(13,766)

(139)

(867)

(3)

(243)

(12,008)

(20,980)

2,715

(418)

(9,293)

(21,398)

(9,293)

(21,398)

(9,293)

(21,398)

(9,293)

(21,398)

Administrative Expenses

Financial Costs Foreign Currency Exchange Differemces Income from Indexation Units Profit (Loss) Before Taxes Profit (Loss) Income Taxes Profit (Loss) After Taxes Discontinue Operations Profit (Loss) of the Discontinue Operations of the Period Profit (Loss)

Loss (gain) attributable to: The ow ners of the company Non-controlling interests Loss

b. Consolidated Balance Sheet 31-06-2015 CLP $ 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

31-12-2014 CLP $ M

15,118 835 7,078 114,287 55,573 26,246 219,137

20,329 593 4,402 110,031 58,148 37,338 230,841

21,766 260 24,099 53,295 99,420

31,129 314 20,066 59,215 110,723

318,557

341,565

Current Liabilities Other current financial liabilities Other trade and other accounts payable Other current provisions Current tax liabilities Employee benefits provisions Other current non - financial liabilities Total Current Liabilities

28,988 54,261 3,047 4,149 4,083 2,038 96,566

44,125 63,863 3,385 4,098 4,949 4,201 124,621

Non - Current Liabilities Other non - current financial liabilities Other long term provisions Defered tax liabilities Total non - current liabilities

24,470 2,259 51,250 77,978

186,050 1,730 48,322 236,101

174,545

360,722

313,617 (347,682) 178,077

302,678 (338,389) 16,554

144,012 144,012

(19,157)

318,557

341,565

Non - Current Assets Fees receivable Other non - current financial assets Intangible assets other than goodwill Properties, plant and equipment Total Non - Current Assets Non Current Assets held for sale Total Assets

Liabilities directly associated with non - current assets held for sale Total Liabilities Equity Issued capital Retained earnings Other reserves Equity attibutable to: Owners of the parent Non - controlling interests Total Equity Total Liabilities and Equity

(19,157)

Indicators Indicators Current Ratio Acid Ratio

Unit Times Times

Jun´15 2.27 1.69

Mar´15 2.25 1.72

Dec´14 1.87 1.45

Sep´14 2.03 1.5

Jun´14 2.18 1.65

Indicators Inventory Turnover

Unit Times

Jun´15 4

Mar´15 4

Dec´14 5

Sep´14 4

Jun´14 4

Inventory Turnover

Days

Indicators

Unit

Jun´15

Mar´15

Dec´14

Sep´14

Jun´14

Average Payment Period

Days

188

190

201

169

171

Indicators Average Collection Period

Unit Days

Jun´15 60

Mar´15 85

Dec´14 58

Sep´14 62

Jun´14 70

Indicators Current Liabilities

Unit %

Jun´15 55.3%

Mar´15 52.4%

Dec´14 33.2%

Sep´14 30.6%

Jun´14 30.8%

Non - Current Liabilities

44.7%

47.6%

66.8%

69.4%

69.2%

c. Cash Flow Statements

Cash Flow Statements

30-jun-15

30-jun-14

CLP $ M

Cash Flow from (used in ) operating activities Proceeds from sales of goods providing activities Payment to suppliers for goods and services

210,136

258,682

(150,157)

(203,520)

Payment to and on behalf of employees

(27,138)

(30,098)

Other payments related to operating activities

(42,272)

(25,365)

Interest received Interest paid Reimbursed (paid) income taxes Cash Flow from (used in ) operating activities

(163) (372) 11,746 1,781

1,308 (489) (710) (192)

Cash Flow from (used in ) investing activities Cash receipts from the loss of control of subsidaries and other businesses Loans to related entities Proceeds from the sale of property, plant and equipment

Acquisition of property, plant and equipment

(1,190)

Proceeds from sales of intangible assets

(1,544)

73 (2,088)

Other incomes (outflows) of cash

Cash Flow from (used in ) investing activities

(2,721)

(2,015)

Cash Flow from (used in ) financing activities Proceeds from shot - term borrowings Loan payments

6,000 (2,000)

(482)

(728)

(1,015)

Interest payments

(7,543)

(4,829)

Cash Flow from (used in ) financing activities

(4,271)

(6,326)

Net decrease in cash and equivalents

(5,211)

(8,534)

Cash and cash equivalents at the beginning of the period

20,329

21,403

Cash and cash equivalents at the end of the period

15,118

12,869

Payments for finance leases

16 7.

Annex CLP $M 1Q 2014

2Q 2014

3Q 2014

4Q 2014

1Q 2015

2Q 2015

Revenues

72,942

82,811

69,605

100,134

68,578

77,601

Costs

-54,865

-58,603

-51,639

-69,961

-49,974

-53,350

Gross Margin

18,078

24,208

17,966

30,173

18,603

24,252

24.8%

29.2%

25.8%

30.1%

27.1%

31.3%

-22,002 -3,925

-26,450 -2,241

-23,484 -5,518

-27,174 3,000

-23,084 -4,480

-25,077 -825

-5.4%

-2.7%

-7.9%

3.0%

-6.5%

-1.1%

20,087 -5,849 14,238

19,018 -6,619 12,399

16,902 -6,506 10,395

16,606 -7,946 8,660

17,426 -6,433 10,993

17,822 -7,072 10,750

70.9%

65.2%

61.5%

52.1%

63.1%

60.3%

-12,070 2,168

-11,483 917

-10,249 147

-8,407 253

-8,431 2,562

-7,979 2,771

10.8%

4.8%

0.9%

1.5%

14.7%

15.5%

-1,388 333 1,055

-1,459 292 1,167

-1,378 277 1,100

-1,242 242 1,001

-1,279 278 1,002

-1,207 295 912

91,641 -60,380 31,261

100,371 -64,930 35,441

85,129 -57,868 27,261

115,498 -77,665 37,833

84,724 -56,129 28,595

94,217 -60,127 34,090

34.1%

35.3%

32.0%

32.8%

33.8%

36.2%

-33,018 -1,757

-36,765 -1,325

-32,633 -5,372

-34,580 3,253

-30,513 -1,918

-32,144 1,946

-1.9%

-1.3%

-6.3%

2.8%

-2.3%

2.1%

Retail Business

% Revenues

SG&A (w/o depreciation) EBITDA % Revenues

Financial Business Revenues Costs Gross Margin % Revenues

SG&A (w/o depreciation) EBITDA % Revenues

Consolidation Adjustments¹ Revenues Costs SG&A (w/o depreciation) Consolidated² Revenues Costs Gross Margin % Revenues

SG&A (w/o depreciation) EBITDA % Revenues

¹ Intercompany billing, of the financial business to the retail business for purchases made with the TLP card ² Financial interests that are related to the portfolio financing , which are considered in the cost of sales