1
2 1.
Highlights 3Q 2015
2.
Consolidated Income Statements
3.
Retail Business Indicators
4.
Stores
5.
Financial Business Indicators
6.
Financial Statements La Polar S.A. - IFRS
a.
Consolidated income statements by function
b.
Consolidated Balance Sheet
c.
Cash Flow
7.
Annex
Notes: Quarters are named as: 1Q, 2Q, 3Q, 4Q accordingly Semesters are named as: 1H, 2H accordingly and 9M 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
3 1.
Highlights 3Q 2015
The third quarter ended with a positive EBITDA of CLP B $ 0.5, which is significantly higher than the loss of CLP B $ -5.4 recorded in the same period last year. Therefore the cumulative 2015 EBITDA reached CLP B $ 0.5 compared to negative EBITDA of CLP B $ 8.4 accumulated in 2014. . In addition, the EBITDA of the last 12 months ended in CLP B $ 3.8. This improvement was achieved despite that has remained a highly competitive environment with adverse macroeconomic conditions. Retail business revenues in 3Q 2015 grew 1.4% from the third quarter of 2014 with sales of CLP B $ 70.6, equivalent to a SSS growth of 4.0% this 3Q. Additionally, the gross contribution of retail business for the third quarter improved 15.5% over the same period last year. This growth of 360 basis points in gross margin is achieved through greater participation in private labels, gaining 39% of total sales compared with 37% last year over the same period, and also for the good inventory management that allowed a better sales of winters products
In the financial business, there is an improvement of 4.8% in revenues compared to the same period last year, of CLP B 17.7 versus CLP B $ 16.9 respectively. This is due to a larger portfolio compared with the third quarter of 2014 with growth of 3%. It is important to point out that it has maintained a stable trend in risk indicators, maintaining a rate risk over the year by 10% - 11%. This has allowed spending less at risk for the year 2014, and thus the contribution of the financial business grew 17.8% in the third quarter 2015 versus the same period last year. Also you can see, at the end of the third quarter, 513 thousand cards with balance compared with 492,000 the end of the third quarter of 2014.
Maintaining the trend seen in recent quarters in the SG&A, there is a decrease of 3.2% over the same period of 2014. This decrease is in addition to the savings that had already been achieved in 3Q 2014 with the efficiency plan that began the second half of 2014, where various expenses to company level were reduced, such as reducing staff in senior management as well as the model of self service in almost all stores.
On the 29th of September, it is assigned as new CEO Mr. Andres Eyzaguirre Astaburuaga. Mr Gino Manriquez that was Interim CEO takes up his duties as Controller of the company reporting directly to the company's board.
On the 9th of October of 2015, it was reported that it has been signed a deed of sale with Falabella Retail on the Ahumada store in Santiago. This contract will take place at the latest on April 29th of 2016.
4
H Bond conversion into shares:
Summary H bonds converted into shares at September 30th of 2015 N° of shares 2-6-2015
N° of shares 9-30-2015
New Shares
H Bonds ( eq Shares) not converted 9-30-2015
998,617,522
1,552,996,685
554,379,163
1,442,845,881
On the 30h of September of 2015 455,805,357 shares have been converted through H Bonds, equivalent to a 56% of growth over the initial shares on the 6th of February of 2015 and a 28% of the total of H Bonds available. At the close of these financial statements ( 18th of November) the new shares totaled 671,013,069 and a remaining to convert from H Bond that are equivalents to 1,326,211,435 shares that represents a 66% of the potential total shares.
5 2.
Consolidated Income Statements
P&L 3Q 2015
P&L 9M 2015
6
EBITDA CLP B $ LTM 1.0%
3,8027 Ebitda
3Q 2014
4Q 2014
1Q 2015
-5,1966
-5,3579
-5,7815
-1.,4%
3.
-1.3%
2Q 2015 3Q 2015 -2,0842-0.5%
Mg
-1.4%
Retail Business Indicators 3Q´14
4Q´14
1Q´15
2Q´15
3Q´15
69,605
100,134
68,578
77,601
70,556
Retail Revenues (CLP $ M)
3Q´14
3Q´15
%
69,605
70,556
1,4%
Retail Revenues (CLP $ M)
U12M 3Q14
U12M 3Q15
%
Retail Revenues (CLP $ M) 329,848
316,869
-3,9%
7
Ingresos Retail U12M
Retail Revenues LTM -1,3%
-1,3%
-1,6%
+0,6%
Ingresos (MMM) 330
3Q 14
325
321
316
317
4Q 14
1Q 15
2Q 15
3Q 15
Retail Margin % LTM
Margen Retail % U12M
29,8% 28,3%
28,8%
27,8% 26,9%
3Q 14
4Q 14
1Q 15
2Q 15
3Q 15
8 Sales UF/ sqm 1Q
2Q
3Q
4Q
2014
6.4
7.2
5.9
8.4
2015
5.8
6.6
6.1
Var %
-10%
-9%
2%
3Q´14
4Q´14
1Q´15
2Q´15
3Q´15
16,902
16,606
17,426
17,817
17,721
4.
Stores
5.
Financial Business Indicators
Ingresos Financieros (MM$)
3Q´14
3Q´15
%
16,902
17,721
4,8%
Ingresos Financieros (MM$)
U12M 3Q14
U12M 3Q15
%
Ingresos Financieros (MM$) 77,238
69.570
-9,9%
9
Financial Revenues LTM
Financial Margin % LTM
67% 63%
3Q 14
4Q 14
61%
59%
1Q 15
2Q 15
61%
3Q 15
10
Financial Indicators 2014 FINANCIAL BUSINESS
2015
1Q´14
2Q´14
3Q´14
4Q´14
1Q´15
2Q´15
3Q´15
Credit Card Loan Stock (CLP $ B)
163
153
133
144
136
141
137
Provision for loan losses (CLP $ B)
15
15
14
15
15
16
15
9,1%
9,9%
10,4%
10,3%
10,8%
11,3%
10,8%
% Provision for loan losses Net loan losses ( CLP $ B)
5
5
9
7
7
6
7
Open accounts w/balance (Th.)
508
524
492
531
509
526
513
Average Debt (CLP $ Th.)
322
292
271
271
268
268
267
% of sales with credit card
49,2%
56,0%
52,5%
51,4%
49,7%
56,5%
54,0%
Credit Card Loans (CLP B$)
59 47
3Q´
2014
2015
Credit Card Loan Portfolio (CLP B$)
11
Risk Rate 26% 23% 19% 16% 12%
13% 11% 08%
08%
09%
10%
10,4%
10,3%
10,8%
11,3%
10,8%
DEC´11 MAR´12 JUN´12 SEP´12 DEC´12 MAR´13 JUN´13 SEP´13 DEC´13 MAR´14 JUN´14 SEP´14 DEC´14 MAR´15 JUN´15 SEP´15
The risk rate has remained constant during the year 2015. This level of provision at the end of the third quarter of 2015 is considered suitable for the segment in which the company operates. Just as in previous periods, we can see a smaller portion of customers renegotiated 16% versus 20% compared with the same period last year and a greater proportion of normal customers with 77% versus 74% respectively.
Loan Portfolio Indicators – Gross Loans (%)
29% 44%
19%
17%
15%
13%
12%
81%
83%
85%
87%
88%
14%
18%
20%
18%
15%
16%
16%
86%
82%
80%
82%
85%
84%
84%
37%
71% 56%
24%
76%
63%
Normal
Renegociated
12 Loan Portfolio Indicators – Portfolio by aging segments
13 6. 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
14
b. Consolidated Balance Sheet
15
Indicators
16
c. Cash Flow Statements
17
7. Anexx CLP $ M
š 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