Press 4q english by Nueva Polar

Earnings Release Fourth Quarter 2013

Contents 1. 4Q 2014 Highlights 2. Recent Events 3. Consolidates Income Statements 4. Retail Business Indicators 5. Stores 6. Retail Business Financial Indicators 7. EBITDA 8. Colombia Exit 9. Financial Statements La Polar S.A. – IFRS a. Consolidated Income Statements b. Consolidated Balance Sheet c. Cash Flow 10. Annex

Notes:  Quarters are named as : 1Q, 2Q, 3Q, 4Q accordingly  Semesters are named as: 1H, 2H accordingly and 9M for the first nine months of the year  Currency symbols: CLP$ Chilean Pesos, US$ U.S. dollars, M millions, B Billions  Exchange rate used in this 4Q report: 1 USD$ = CLP$ 523.76 Source: Internal Revenues Service (Servicio de Impuestos Interno – SII- Chile)

1. 4Q 2013 HIGHLIGHTS 

Same Store Sales 4Q Chile, continues to grow.

Following the positive trend of the last quarters, Same Store Sales (SSS) increased during the fourth quarter of 2013 by 6% compared to the same period last year. With this result the SSS growth was of 11% for 2013.

 Retail Margin in Chile grows 2 percentage points. During the fourth quarter, the retail margin reached a margin of 27.4%, meaning an increase of 2 percentage points over the previous year. Also the contribution reached USD $ 55 million, equivalent to a 14% increase over the same period last year.

 Increase in Financial Margin and the Portfolio Financial revenue in 4Q presented a growth of 51% over the same period last year. This is mainly because to a 46% average growth in the loans portfolio during the 4Q. The financial revenue in 2013 grew 25% over 2012. It is noteworthy to mention that despite the increase in financial revenue together with the growth in the loans portfolio, they represent only 21% of retail sales.  Risk Rate reaches 7.9% in 2013 The total rate risk at December 31 of 2013 was 7.9%, showing an improvement in the late payment, a decrease in the renegotiated costumers and also driven by sales growth through at the end of the year.

 Third consecutive quarter of positive EBITDA Chile. During the fourth quarter of 2013 the EBITDA was of USD $ 5.1 million, equivalent to a 2.1% of total income. This was achieved mainly by a top line improvement of 11.4% and a substantial improvement in the retail margin. Additionally, the 2013 EBITDA margin1 reached 2.2%, reflecting the first positive calendar year of La Polar in this indicator.

Ebitda Margin: Ebitda / Revenues

2. RECENT DEVELOPMENTS ď&#x192;ź Colombia Exit On 27th of February, the Board of Directors of the company agreed the prompt exit of Colombia. This will allow us to dedicate all of the resources to La Polar Chile, to continue improving and growing for the retail and financial business. This essential fact was reported to the Securities and Insurance Supervisor on 28th of February. Dated march 19th of 2013, the Board announced that, in accordance with IFRS regulations that are applicable to such matters, having considered the investment in Colombia as an available for sale asset during the last quarter of 2013, and in order to properly reflect its fair value in the financial statements, this involved a charge of approximately CLP $ 44.000 million against its P&L (this includes a 100% writeoff on the investment in Colombia, and the annual loss for the operations in that country) for 2013.

3. CONSOLIDATED INCOME STATEMENTS2 Consolidates Income Statements 4Q 2013 CLP B$

4Q 13 124.7

% Income

4Q 12 111.9

% Income

Revenues Cost of Sales Margin

(82.3) 42.4

-66% 34%

(72.3) 39.6

-65% 35%

SGA (w/o depreciation)

(40.4)

-32%

(38.1)

-34%

0.4 2.7

0% 2%

(0.0)

0% -3%

Operating Income EBITDA

(2.9)

Depreciation

(1.6)

Non - Operating Profit Profit (loss) before taxes

(6.3)

290.4

Benefits (expenses) income tax

(5.9)

-5%

259%

290.4

4.0

(39.2)

Profit (loss) Chile

(1.9)

251.2

Profit (loss) Colombia

(38.1)

(5.0)

Profit (loss) Consolidated

(39.9)

246.2

Consolidates Income Statements 2013 CLP B$

2013 398.1

% Income

2012 351.9

% Income

Cost of Sales Margin

(258.9) 139.2

-65% 35%

(265.0) 87.0

-75% 25%

SGA (w/o depreciation)

(132.8)

-33%

(125.5)

-36%

0.1 8.9

0% 2%

(44.6)

Revenues

Operating Income EBITDA Depreciation

(6.4)

Non - Operating Profit Profit (loss) before taxes

(23.1)

Benefits (expenses) income tax

(23.1)

-11%

(40.3) (6.1) 285.9

-6%

69%

241.4

7.7

(40.8)

Profit (loss) Chile

(15.4)

200.5

Profit (loss) Colombia

(44.3)

(13.0)

Profit (loss) Consolidated

(59.7)

187.5

The 2013 net income in Chilean operation was a loss of CLP B$ 15.4, reflecting that, despite the improvement on the operating income over the year 2012, where we achieved an operational breakeven in 2013, the financial burden mainly from the F and G bonds, drives to a loss before tax of CLP B$ 23.1 Additionally, the loss generated by the Discontinued Operations of CLPB$ 44.3 from Colombia, led to a consolidated loss for the year 2013 of CLP B$ 59.7.

The complete Financial Statements, under the IFRS regulations, are found in note 9.a on page 15.

Accounts Reclassification After an analysis of the retail industry, it was decided to reclassify some accounts that will allow us to have a better industry comparison. Therefore all indicators for 2012 and 2013 are updated with the new account classification. These account changes are reflected in: New Clasisification Retail Revenues

Retail Revenues ´+ Extended Guarantee Revenue

Financial Revenues

Financial Revenues ´- Extended Guarantee Revenue

Retail Costs

Retail Costs ¨+ Extended Guarantee Cost ´-Payroll Distribution Center

Financial Costs

Costos Financieros ´- Financial Comissions ¨- Extended Guarantee Cost

SG&A

SG&A ´+Financial Comissions ´+Payroll Distribution Center

4. RETAIL BUSINESS INDICATORS Revenues

4Q´13

4Q´12

12M´13

12M´12

104,489

98,515

330,149

297,524

11%

Retail Revenues (CLP M$) Chile

b. Retail Revenues (CLP B$) Retail Revenues during the fourth quarter of 2013 compared to the same period last year, increased by 6% to CLP M $ 104.489. In addition, there was a cumulative growth of 11% in the last twelve months.

+11% +15%

+6%

+11%

+14%

298 82

2012

104

330

12M

2013

Same Store Sales (CLP B$) +11%

+6% +16%

+15%

57 1Q

+12%

285

3Q 2012

318

102

12M

2013

Same Store Sales increased during the fourth quarter of 2013 by 6% compared to the same period last year, continuing the positive trend, this reflects an accumulate of 11% in the last 12 months over the same period last year.

Sales UF/M23 1Q

2012

5.5

6.6

6.1

8.8

2013

6.2

7.4

6.8

9.3

Var %

12%

13%

10%

During the fourth quarter of 2013, sales reached a 9.3 UF/m2, which means an increase of 6% from the same period last year. The annual average was 7.5 UF/M2 which means a 10.4% improvement over 2012.

Retail Margin (%)

29,8%

22,3%

25,2%

26,3%

24,9%

25,5%

27,4%

24,2%

27,0%

21,8%

3Q 2012

12M

2013

After reviewing the performance of the retail margin in the fourth quarter of 2013, we see an increase of almost 2 percentage points over the same period last year. This sustained increase in the retail margin, is due to the strong growth in the private labels. In the product sales of soft and hard lines, there has also been an improvement in its sales efficiency.

UF/sqm: (Retail Sales /UF monthly closing)/ Square meters ( sales room, hallway, fitting room, storage). This is a monthly indicator, but reported on a quarterly basis,

5. STORES4

2012

2013

Chile

Number of Stores

Sel l i ng Space (M2)

159,100

158,600

159,800

161,000

160,700

160,300

160,500

161,300

377

451

423

612

427

510

468

648

Quarter Revenues (CLP$)/s qm

At the end of the fourth quarter of 2013, La Polar keeps the same number of stores over the previous quarter. By the end of the fourth quarter, La Polar has 161,300 M2 of sales area. The slight increase was due to the total clearance store and the addition of tents for Christmas.

6. RETAIL BUSINESS FINANCIAL INDICATORS 4Q´13

4Q´12

12M´13

12M´12

20,208

13,418

51%

67,963

54,406

25%

Financial Revenues (CLP M$) Chile

Financial Retail Revenue

Retail Financial revenues during the fourth quarter of 2013, were CLP$ M 20.208, an increase of 51% over the same period last year. Financial revenue in 4Q presented a growth of 51% over the same period last year. This is mainly because to a 46% average growth in the loans portfolio during the 4Q. The financial revenue in 2013 grew 25% over 2012. It is noteworthy to mention that despite the increase in financial revenue together with the growth in the loans portfolio, they represent only 21% of retail sales.

The increase of square meters compared to 3Q, was due to the installation of tents from 3 stores due to Christmas period.

Financial Indicators

CHILE

2012

Financial Business

2013

1Q´12

2Q´12

3Q´12

4Q´12

1Q´13

2Q´13

3Q´13

4Q´13

Credit Card Loan Stock ( CLP Billion $)

124

113

103

115

112

121

139

179

Provision for loan losses (CLP Billion $)

22.6%

19.1%

16.1%

12.4%

12.9%

10.8%

8.3%

7.9%

% Provision for loan losses Net loan losses ( CLP Billion $)

Open Accounts w/ balance (Th.)

483

469

453

477

453

461

464

519

Average debt ( CLP Th.$)

257

242

227

241

247

263

299

344

% of sales with Credit Card

45%

50%

49%

45%

50%

52%

51%

Credit Card Loans5 (CLP B$)

Credit Card Loan Portfolio (CLP B$)

Total Stock $ 115

Total Stock $ 179

102

22 158

DEC´12

4Q´

Normal

2012

DEC´13

Renegociated

2013

In the fourth quarter of 2013, gross loans reached CLP B$ 179, emphasizing an increase in the normal portfolio (not renegotiated) by 69% over the same period last year. In December 31st of 2013, the risk rate reached 7.9%, this represents a decrease of 4.6 percentage points compared to December 2012. There was also an increase in the credit card loans with the Polar Card, where the Cash loans had a participation of 29% reaching in the fourth quarter of 2013 CLP M$ 37.

Credit card loans with credit card La Polar includes: Cash Advances, Super Advances, and use in Associated Business and finance in La Polar Retail stores. Include VAT.

Loan Portfolio Indicators – Gross Loans (%)

44%

56%

DIC´11

37%

63%

MAR´12

19%

15%

13%

12%

24%

17%

29%

83%

85%

87%

71%

81%

88%

76%

JUN´12

SEP´12

DIC´12

MAR´13

JUN´13

SEP´13

DIC´13

Normal

Renegociated

In the composition of the portfolio, it stands out the sustained growth in the participation of the normal portfolio, reaching at the end of the fourth quarter with an 88% of the total, higher than the 81% of the same period last year. This confirms that credit policies and customer acquisition strategy have been effective due to continuous improvement that the portfolio has experienced in recent years.

Loan Portfolio Indicators – Portfolio by aging segments. 6% 6% 11%

5% 5% 10%

[91 to 180] [31 to 90] 78%

80%

[01 to 30] Current

DEC´12

DEC´13

By comparing the fourth quarter of 2013 with the fourth quarter of 2012, the daily portfolio increased by 2 percentage points. In this line, the composition of the portfolio in the 91 to 180 days overdue segment shows a decrease in their share of total loans portfolio from 6% to 5%.

7. EBITDA CHILE 6 7 4Q 2013 EBITDA Chile in CLP B$ Revenues Gross Margin % Revenues

SG&A (w/o depreciation)

Retail Growth

2013 104.5 28.6

6.1% 13.8%

27.4%

(27.5)

10.5%

% Revenues

-26.3%

% Revenues

1.1 1.1%

EBITDA

2012 98.5 25.2

2013 20.2 13.8

25.5%

68.2%

(24.9) -25% 0.3 0.3%

(12.9)

Financial Growth 50.6% -4.6% -2.0%

-63.8%

1.5 7.6%

2012 13.4 14.4

2013 124.7 42.4

107.7%

34.0%

(13.2) -98% (3.2) -23.6%

(40.4)

Consolidated Growth 7.1%

2012 111.9 39.6

6.1%

(38.1)

11.4%

35.4%

-32.4%

-34.0%

2.7

(2.9)

2.1%

-2.6%

Year 2013 EBITDA Chile in CLP B$ Revenues Gross Margin % Revenues

SG&A (w/o depreciation)

Retail Growth

2013 330.1 89.1

11.0% 23.7%

27.0%

(88.5)

5.6%

% Revenues

-26.8%

% Revenues

0.6 0.2%

EBITDA

2012 297.5 72.0

2013 68.0 50.1

24.2%

73.7%

(83.8) -28% (11.8) -4.0%

(44.3)

Financial Growth 24.9% 235.4% 6.3%

-65.1%

8.3 12.2%

2012 54.4 14.9

2013 398.1 139.2

27.5%

35.0%

(41.7) -77% (28.5) -52.4%

(132.8)

Consolidated Growth 60.1%

2012 351.9 87.0

5.9%

(125.5)

13.1%

24.7%

-33.4%

-35.6%

8.9

(40.3)

2.2%

-11.5%

4Q EBITDA reached 2.1% of the revenues, same period of 2012 it reached 2.6%, this is due to the rise in both retail and financial revenue, where both increase this period. Regarding the annual EBITDA of 2013 where 2.2% was achieved compared to -11.5% of 2012. We can also see that is mainly due to the increase in total revenues, were there was a 13.1% increase.

CHILE 2013 EBITDA MARGIN EVOLUTION

EBITDA 2013 1Q´13

2Q´13

3Q´13 1%

4Q´13 2%

-1% -4%

The financial retail segment of 2012 was modified to reflect the same criteria for distributing costs of both businesses in 2013. 7 For both 2012 and 2013, are included in the cost of sales of the financial segment, the interests that are not considered in the calculation of the EBITDA

8. Colombia Exit On February 28th of 2014, the Board of Empresas La Polar informed the Securities and Insurance Supervisor (SVS), through an essential fact, the closure of operations in Colombia. Within this essential fact, it can be summarized in the following points: 1. As it was informed previously in the essential fact dated on January 5, the company was evaluating alternatives with the operation in Colombia, having not set specific dates or deadlines for this decision. 2. The Board of Directors of the company has taken the decision to leave Colombia allowing to prioritize the operations in Chile given the favorable development that has shown in its retail and financial area. 3. The company is evaluating all possible alternatives to leave Colombia in a short time. Any information regarding the alternative that is resolved to apply shall be notified promptly.

Discontinued Operations The Board dated December 10th of 2013, formalized the decision to put on sale the subsidiary La Polar S.A.S. After the intended sale was formalized, its fair value was determined in accordance with IFRS regulation N째5. In accordance with IFRS applicable regulations, the Board having considered the investment in Colombia as an available for sale asset during the last quarter of 2013, and in order to reflect its fair value in the balance in Colombia, this implies a charge of approximately CLP M$ 44,000 against its P&L (this includes a 100% write off on the investment in, and the annual loss for the operations in that country) for 2013.

9. FINANCIAL STATEMENTS OF La Polar S.A. â&#x20AC;&#x201C; 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 Statements8

Consolidated Incom e Statem ents

Revenues

31 Dec 13

31 Dec 12

CLP $

398,111,758

351,929,751

Cost of sales

(258,902,712)

(264,973,719)

Gross Profit

139,209,046

86,956,032

Distribution costs

(1,631,829)

(1,394,781)

Administrative expenses

(137,547,254)

(130,117,220)

Other profit (loss)

161,939

7,220,238

Financial income

3,912,002

294,582,886

(28,565,171)

(16,077,245)

Financial costs Foreign currency exchange differences

1,886,610

581,895

Profit (loss) fron inflation-indexed assets and liabilities

(504,193)

(387,079)

Profit (loss) before taxes

(23,078,849)

241,364,726

Benefit (loss) income taxes

7,524,583

(40,825,215)

Profit (loss)

(15,554,266)

200,539,511

Profit (loss) from discontinued operations of the period

(44,329,068)

(13,011,056)

Profit (loss) of the period

(59,883,327)

187,528,455

(59,883,327)

187,528,455

(59,883,327)

187,528,455

Profit (loss) attributable to: Ow ners of parent company Non - controlling interests Profit (loss)

In 2013 and 2012 it was added the Profit (loss) from the discontinued operations of the period, referring to the decision by the Board to put on sale La Polar S.A.S.

b. Consolidated Balance Sheet 9

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 Non-Current Assets Other non-current financial assets Other non-current assets Intangible assets other than goodwill Properties, plant and equipment Deferred tax assets Total non-current assets Non-Current Assets held for sale Total Assets 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 Non-current Liabilities Other non-current financial liabilities Other long term provisions Deferred tax liabilities Total non-current liabilities Liabilities directly associated with non-current assets held for sale Total Liabilities Equity Issues capital Retained earnings Other reserves Equity attributable to: Owner of the parent company Non-controlling interest Total Equity Total Liabilities and Equity

31-12-2013 CLP M $

31-12-2012 CLP M $

01-01-2012 CLP M $

21,403

137,620

13,126

839

7,293

21,861

7,599

8,661

8,305

128,520

104,370

105,874

51,026

50,227

44,150

32,956

18,388

15,444

242,342

326,558

208,760

48,710

15,132

26,041

437

246

19,333

19,597

17,189

61,173

70,553

68,621

2,865

7,490

13,953

132,518

113,019

126,050

395,007

439,577

334,811

29,724

15,861

469,790

72,292

76,394

67,621

3,987

24,035

1,281

4,039

1,216

758

5,961

5,874

5,832

3,145

3,142

2,942

119,147

126,521

548,223

177,260

177,599

5,820

3,059

2,238

20,146

44,941

42,106

8,775

225,261

221,942

14,595

348,463

562,818

20,631 365,039

302,678

171,947

(289,937)

(230,210)

(418,789)

17,227

18,643

18,834

29,967

91,112

(228,008)

29,967

91,114

(228,008)

395,007

439,577

334,811

For 2013 it is added Non-current assets held for sale and liabilities directly associated with non-current assets held for sale, referring to the decision by the Board to put on sale La Polar S.A.S.

Indicators10

Indicators Current ratio Acid ratio

Unit Times Times

Dec´13 2.03 1.61

Sep´13 2.34 1.75

Jun´13 2.51 1.99

Mar´13 2.50 2.00

Dec´12 2.54 2.15

The current ratio decreases in December 2013 compared to December 2012 due to the decrease in cash and equivalents, in 84% compared to December 2012. As for the Acid ratio, it decreased mainly for the increased in the inventory by 3% compared to December 2012.

Indicators Inventory turnover Inventory turnover

Unit Times Days

Dec´13 5 78

Sep´13 4 88

Jun´13 5 84

Mar´13 4 89

Dec´12 5 74

Comparing 4Q 2013 with 4Q 2012, it is observed that the number of days of inventory increase in 9 days, mainly because the inventory increased by 3% compared to December 2012.

Indicators Average collection period

Unit Days

Dec´13 189

Sep´13 177

Jun´13 178

Mar´13 175

Dec´12 197

The average collection period decreased 8 days compared to December 2012, due to a 57% increase in the sale of La Polar Card.

For December 2013 it only considered data from Chile, referring to the decision by the Board to put on sale La Polar S.A.S.

Indicators Current liabilities Non-Current liabilities

Unit % %

Dec´13 32.6% 67.4%

Sep´13 30.4% 69.6%

Jun´13 33.1% 66.9%

Mar´13 34.9% 65.1%

Dec´12 37.0% 63.0%

Mar´13 73

Dec´12 80

Current liabilities, in December of 2013, represent 32.6% of total liabilities.

Indicators Average payment method

Unit Days

Dec´13 70

Sep´13 51

Jun´13 59

The decrease in the average payment period in 10 days compared to December 2012 is due to a decrease in 8% of the trade payables and other accounts payable. DF / EBITDA Financial Debt to EBITDA

Dec´13 23.3

Sep´13 -22.9

Jun´13 -11.9

Mar´13 -7.5

Dec´12 -3.6

The variation in the ratio is explained by the first annual positive EBITDA.

Financial Debt Structure Below is a table with the annual accrual of interest related to the debt originated on preventive legal agreement of 2011. On the basis of discount rates which were used to reevaluate accounting debts to 16 of October 2012 ( 14,1% for Senior debt ( Bond F), 18,1% for the Junior Debt ( Bond G) and 9% for tranche C)11, and to the payment structure for each of these tranches, you can project an estimate of the interest accrued on an annual basis In this way, for example, it is expected that the financial expenditure for 2014, related with this debt, will be approximately CLP B$26. On the other hand this year the payment in cash the company realized, was of approximately CLP B$ 9.

CLP B$

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Annual Financial Expenses Interest Bond F Bond G Tranch C Total 20 21 23 23 23 22 21 19 15 4

2 3 3 4 5 6 7 8 9 11 13 16 18 22 26 31 36 43 51 34

2 2 2 2 2 2 2 2 1 1 1 0

24 26 28 29 30 30 30 29 25 17 14 16 18 22 26 31 36 43 51 34

Payment Flows Capital Interest Total 0 0 2 4 6 10 22 22 43 102 5 5 0 0 0 0 0 0 0 326

8 9 13 21 20 20 18 16 14 8 1 0 0 0 0 0 0 0 0 0

8 9 15 25 26 30 41 38 57 110 6 5

326

Projection of future interest for Bond G considers an annual inflation rate of 3% and does not consider possible future amortization from 50% of the revenue from the UNI1 portfolio.

Paid

c. Cash Flow Statements12

Cash Flow Statements

31-12-2013

31-12-2012

CLP M$

Cash flow from (used in) operating activities Proceeds from sales of goods providing services

459,224

424,364

(361,908)

(321,952)

Payment to and account of empolyees

(54,995)

(55,666)

Other payments for operating activities

(116,226)

(45,519)

Received Interest

4,480

4,207

Income taxes refunded (paid)

1,617

(402)

(67,808)

5,032

Payment to suppliers for supplying goods and services

Net cash flow from operating activities Cash flow (used in) investing activities Cash flows used to obtain control of subsidiaries or other businesses Loan to related entities Proceeds from disposal of property, plant and equipment Addittions to property, plant and equipment Addittions to intangible assets Other cash flow Flujos de efectivo netos procedentes de (utilizados en) actividades de inversi贸n

(19,989) (16,133) 0

4,083

(10,847)

(5,189)

(715)

(307)

(1,998)

17,020

(29,694)

(4,382)

130,731

Cash Flow (used in) financing activities Proceeds from issuance of shares Proceeds from short term loans

5,355

2,091

Total proceeds from loans

5,355

132,821

(13,636)

(5,974)

(1,212)

(770)

Loan payments Payments of financial lease liabilities Interest Paid

(7,537)

Net cash flow from (used in) financing activities

(17,030)

126,078

Net decrease in cash and cash equivalents

(114,532)

126,727

135,935

9,208

21,403

135,935

Net decrease in cash and cash equivalents

1,114

(2,234)

Cash and cash equivalents at the beginning of the period

1,685

3,919

Cash and cash equivalents at the end of the period

2,799

1,685

Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

Cash Flow of Discontinued Operations

It is added to 2013, cash flow and cash equivalents from discontinued operations, referring to the decision by the Board to put on sale La Polar S.A.S.

During the period the net cash flow equivalent was a negative CLP M$ 116,217. This amount breaks down as follows:

Operating activities generated a negative cash flow of CLP M$ 67,808, this amount is explained by the growth rate of the loans portfolio in 2013. This increase was from CLP M$ 114,995 in December 2012 to CLP M$ 178,681 in December 2013. Additionally, the operation flow includes the payments made to the â&#x20AC;&#x153;Sernac agreementâ&#x20AC;? costumers by approximately CLP M$ 15,000. Investing activities generated a negative cash flow of CLP M$ 29,694, of which approximately CLP M$ 11,000 was due to improvements in stores in 2013, as well as investments associated with IT, especially in the development of the fingerprint payment method that was implemented in our stores. Also, investing activities includes the cash flows to Colombia in 2013 for CLP M$ 16,133. Financing activities generated a negative cash flow of CLP M$ 17,030. Of these, approximately CLP M$ 10,000 are from interest payments, mainly for F and G Bonds and the debt related to the PS27. Also CLP M$ 6,500 were used to buy back debt from the G Bond through Fondo de Inversion Maipo (fully controlled by La Polar).

10 Annex

Retail Business Revenues Costs Gross Margin % Revenues

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

Financial Business Revenues Costs Gross Margin % Revenues

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

1Q 2012

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

3Q 2013

4Q 2013

59.931 (46.561) 13.370

71.546 (52.763) 18.784

67.531 (52.836) 14.695

98.515 (73.348) 25.167

68.673 (51.361) 17.312

81.818 (57.406) 24.412

75.169 (56.428) 18.741

104.489 (75.849) 28.640

22,3%

26,3%

21,8%

25,5%

25,2%

29,8%

24,9%

27,4%

(18.519) (5.149)

(20.082) (1.298)

(20.313) (5.618)

(24.893) 274

(19.704) (2.392)

(21.305) 3.107

(20.010) (1.269)

(27.507) 1.133

-8,6%

-1,8%

-8,3%

0,3%

-3,5%

3,8%

-1,7%

1,1%

14.755 (30.353) (15.598)

13.551 (6.538) 7.013

12.682 (3.606) 9.076

13.418 1.031 14.449

14.318 (5.639) 8.679

15.858 (3.258) 12.600

17.578 (2.545) 15.034

20.208 (6.417) 13.792

-105,7%

51,8%

71,6%

107,7%

60,6%

79,5%

85,5%

68,2%

(9.911) (24.636)

(8.835) (950)

(9.737) 220

(13.167) (3.160)

(9.880) (395)

(9.055) 4.044

(12.437) 3.101

(12.899) 1.533

1,7%

-23,6%

-167,0%

-7,0%

0 Consolidated Revenues Costs Gross Margin

74.686 (76.913) (2.228) % Revenues

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

0 85.098 (59.301) 25.797

(0) 80.213 (56.443) 23.771

-2,8%

0 111.933 (72.317) 39.616

25,5%

0 82.991 (57.000) 25.991

17,6%

0 97.676 (60.664) 37.012

7,6%

0 92.747 (58.973) 33.774

0 124.698 (82.266) 42.432

-3,0%

30,3%

29,6%

35,4%

31,3%

37,9%

36,4%

34,0%

(28.430) (29.786)

(28.917) (2.248)

(30.050) (5.398)

(38.060) (2.887)

(29.584) (2.787)

(30.360) 7.151

(32.447) 1.832

(40.406) 2.667

-39,9%

-2,6%

-6,7%

-2,6%

-3,4%

7,3%

2,0%

2,1%