fourth quarter 2019 financial results · 2020. 2. 26. · fourth quarter 2019 results 3 i. e x e c...
TRANSCRIPT
FOURTH QUARTER 2019
FINANCIAL RESULTS
Fourth Quarter 2019 Results
2
Index I. Executive summary ..................................................................................................................... 3
II. Consolidated financial results, as of December 2019 ............................................................. 4
III. Main events during the period ................................................................................................... 6
IV. Results, as of December 2019 .................................................................................................... 8
V. Retail Indicators ........................................................................................................................... 11
VI. Financial Business Units, ............................................................................................................. 16
VII. Other Indicators ......................................................................................................................... 19
VIII. Operating Results By Business Unit ........................................................................................ 20
IX. Financial Structure ...................................................................................................................... 22
X. Falabella Financial Statements ................................................................................................. 24
Notes:
All dollar figures are calculated considering the exchange rate as of January 2nd, 2020: 748,74 $/US$. (“dólar observado”, published by the BCCH)
Symbols for quarters: 1Q, 2Q, 3Q y 4Q.
Symbols for periods: 6M, 9M, 12M
Curency symbols: $ CLP: Cilean pesos; US$: U.S. dollars.; PEN: peruvian soles; COP: colombian pesos; ARS: Argentinean pesos
Th: thousand, mn: million
Fourth Quarter 2019 Results
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I . E X E C U T I V E S U M M A R Y
Gaston Bottazzini, CEO of Falabella, commented:
“In 2019 Falabella continued enhancing its online proposal reaching US$ 1.2 Bn from NMV, boosted by Linio, who grew 83% during the fourth
quarter, a record expansion rate since its acquisition. During 2019, our retailers' online sales grew 22%. The fourth quarter presented a challenging
backdrop for our Chilean operations. Throughout the disruption after the events of October 18th, we remained focused on the safety of our clients,
employees and facilities, while seeking to maximize the operational availability of our stores."
FINANCIAL HIGHLIGHTS
Consolidated revenues in the quarter reached $2,600,507 Mn (US$ 3,473 Mn), 1.6% increase over prior year. Top-line slowdown was driven by a 9.8% decrease in the retail businesses in Chile, offset by revenue increases across Peru, Colombia and Argentina. (sales in Argentina were imacted by IAS 29 effect).
o Sales contraction in Chile came in a very challenging backdrop, as we faced reduced operational hours in our stores during the second half of October and in November, which also affected margins, and further pressured by increased promotional activity by year-end. At the date of this report, 6 of our 205 stores in Chile remain closed.
Gross profit in the quarter reached $916,076 Mn (US$ 1,223 Mn), a -4.7% decrease with 231 bps deterioration in terms of margin due to lower revenues in Chile in the context of the events after October 18th, coupled with increased provisions in the financial business in Chile. This was partially offset by the performance of Peru, Colombia and Argentina.
The operational income reached $177,077 Mn (US$ 237 Mn). SG&A expenses increased 6.0%, pushing the operating margin up by 349 basis points. Without the effects of IFRS 16 they would have increased 7.7%, a 46-bps contraction in terms of margin.
EBITDA totaled $287.913 Mn (US$ 385 Mn), a decrease of 18.3% in comparison with 4Q18. Excluding IFRS 16 effects, EBITDA would have fallen 28.4%.
Other gains and losses recorded a loss of $28,036 Mn (US$ 37 Mn), related to damages to inventories and PP&E, resulting from the events in Chile after October 18th. Also, a recovery of $32,953 Mn (US$ 44 Mn) was recorded, related to the accrual of insurance recoveries. Recoveries related to business interruption coverage are not included.
Net Income for the period, mainly affected by the lower income from operations in Chile, reached $78,844 Mn (US$ 105 Mn), a decrease of -50.9% compared to 4Q18.
BUSINESS HIGHLIGHTS
Falabella´s NMV reached $297.886 Mn (US$398 Mn) in the fourth quarter, a 28% increase compared with 4Q181. Online department store sales totaled $197,651 Mn (US$ 264 Mn) (22.5% of the total regional sales of this segment), $36.3432 Mn (US$ 49 Mn) at Sodimac.com (3.5% of the total regional sales of this segment); $8,009 Mn (US$ 11 Mn) in Tottus.com (1.8% of the total regional sales of this segment).
Linio´s NMV grew 83% in the quarter, reaching $55,793 Mn (US$ 75 Mn). Peru, Chile and Colombia printed the highest NMVs growth rates since Linio was acquired, increasing 153%, 87% and 65%, respectively, driven by a 104% traffic growth, an increase in sellers and a 39% growth in the product assortment.
CMR credit card sales reached $2,189,950 Mn (US$2,925 Mn), driven by sales on third parties (on-them), which account for ~60% of the sales with our credit card. Also, we continue advancing with online credit card openings, conducting 12% of the openings through this channel.
Consolidated loan book as of December 31th, 2019 amounted to $5,616,570 Mn (US$ 7,501), 12% higher compared to the previous year, highlighting the growth of Banco Falabella Chile and Banco Falabella Colombia. The sales of the financial products3 through digital channels grew 29%, reaching $996,807 Mn (US$ 1,331 Mn), accounting for 37% of the total sales of financial products.
Throughout the year we continued increasing contactability with our customers, we expanded the reach of our loyalty program to non-CMR credit card holders, closing the year with over 6 million active members in the program
In 2019 Falabella.com delivered 28% more online orders than 2018, leveraging on our click & collect network. Click & collect continues to be the preferred delivery alternative, as over 60% of the orders are delivered through it. We currently operate 135 collection points.
1 At the close of 4Q18, Falabella’s online sales reached $203,028 Mn (US$ 271 Mn) and Linio’s NMV $30,480 Mn (US$ 41 Mn). 2 Includes the home improvement business in Chile, Peru, Argentina, Brazil and Uruguay. 3 Total sales of Avance en Efectivo y Super Avances CMR and consumer credits of Banco Falabella Chile, Banco Falabella Colombia and Banco Falabella Peru originated online.
Fourth Quarter 2019 Results
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I I . C O N S O L I D A T E D F I N A N C I A L R E S U L T S , A S O F D E C E M B E R 2 0 1 9
Consolidated Income Statement 4Q19 (CLP million)4
Consolidated Income Statement 2019 (CLP million)
4 CMR Argentina is included in the Non-Banking Operations. Promotora CMR is consolidated in Banco Falabella Chile, in the Banking Operations.
4Q18 % Rev. 4Q19 % Rev. Var %
Revenues of Non-Banking Operations 2,231,114 2,251,145 0.9%
Revenues of Banking Operations 328,597 349,362 6.3%
Total Revenues 2,559,711 100.0% 2,600,507 100.0% 1.6%
COGS of Non-Banking Operations (1,452,870) -56.8% (1,501,930) -57.8% 3.4%
COGS of Banking Operations (145,936) -5.7% (182,501) -7.0% 25.1%
Gross Profit 960,905 37.5% 916,076 35.2% -4.7%
SG&A Expenses (697,268) -27.2% (738,999) -28.4% 6.0%
Operational Income 263,637 10.3% 177,077 6.8% -32.8%
Depreciation + Amortization 88,814 3.5% 110,836 4.3% 24.8%
EBITDA 352,451 13.8% 287,913 11.1% -18.3%
Other Income / (Expenses) 24,536 8,522 -65.3%
Net Financial Income / (Cost) (37,666) (58,614) 55.6%
Profit / (Loss) in Associates 1,754 1,089 -37.9%
Exchange Rate Differences 1,011 (2,470) -344.3%
Non-Operating Profit (10,365) -0.4% (51,473) -2.0% 396.6%
Profit Before Tax Expenses 253,272 9.9% 125,604 4.8% -50.4%
Income Tax (72,232) (33,602) -53.5%
Minority Interest (20,402) (13,157) -35.5%
Net Profit / (Loss) 160,638 6.3% 78,845 3.0% -50.9%
12M18 % Rev. 12M19 % Rev. Var %
Revenues of Non-Banking Operations 7,976,898 8,053,583 1.0%
Revenues of Banking Operations 1,260,444 1,357,192 7.7%
Total Revenues 9,237,342 100.0% 9,410,775 100.0% 1.9%
COGS of Non-Banking Operations (5,255,756) -56.9% (5,433,070) -57.7% 3.4%
COGS of Banking Operations (555,859) -6.0% (615,436) -6.5% 10.7%
Gross Profit 3,425,727 37.1% 3,362,269 35.7% -1.9%
SG&A Expenses (2,546,809) -27.6% (2,656,794) -28.2% 4.3%
Operational Income 878,918 9.5% 705,475 7.5% -19.7%
Depreciation + Amortization 325,331 3.5% 435,861 4.6% 34.0%
EBITDA 1,204,249 13.0% 1,141,336 12.1% -5.2%
Other Income / (Expenses) 24,657 20,797 -15.7%
Net Financial Income / (Cost) (167,413) (204,454) 22.1%
Profit / (Loss) in Associates 7,643 1,172 -84.7%
Exchange Rate Differences (15,581) (22,065) 41.6%
Non-Operating Profit (150,694) -1.6% (204,550) -2.2% 35.7%
Profit Before Tax Expenses 728,224 7.9% 500,925 5.3% -31.2%
Income Tax (184,498) (144,747) -21.5%
Minority Interest (65,258) (60,704) -7.0%
Net Profit / (Loss) 478,468 5.2% 295,474 3.1% -38.2%
Fourth Quarter 2019 Results
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Summary of Consolidated Balance Sheet, as of December 31st 2019 (CLP million)
Summary of Consolidated Cash Flow, as of December 31st 2019 (CLP million)
31-dec-18 31-dec-19 Var %
Current Assets - Non Banking Business 2,550,271 2,427,250 -4.8%
Non Current Assets - Non Banking Business 7,163,331 8,666,018 21.0%
Total Assets - Non Banking Business 9,713,602 11,093,268 14.2%
Total Assets - Banking Business 6,167,903 7,240,402 17.4%
Total Assets 15,881,505 18,333,670 15.4%
Current Liabialities - Non Banking Business 1,934,637 2,022,688 4.6%
Non Current Liabialities - Non Banking Business 3,511,637 4,450,162 26.7%
Total Liabialities - Non Banking Business 5,446,274 6,472,850 18.8%
Total Liabialities - Banking Business 4,447,874 5,628,208 26.5%
Total Liabialities 9,894,148 12,101,058 22.3%
Total Equity 5,987,357 6,232,612 4.1%
Total Liabilities + Equity 15,881,505 18,333,670 15.4%
31-dec-18 31-dec-19 Var %
Cash flow from operating activities - Non Banking Business 425,600 782,589 83.9%
Cash flow from operating activities - Banking Business 545,837 457,914 -16.1%
Cash flow from operating activities 971,437 1,240,503 27.7%
Cash flow from investment activities - Non Banking Business (537,124) (614,200) 14.3%
Cash flow from investment activities - Banking Business (34,010) 120,343 -453.8%
Cash flow from investment activities (571,134) (493,857) -13.5%
Cash flow from financing activities - Non Banking Business (350,214) (576,127) 64.5%
Cash flow from financing activities - Banking Business 134,614 (37,790) -128.1%
Cash flow from financing activities (215,600) (613,917) 184.7%
Increase (decrease) in cash and cash equivalents 184,703 132,729 -28.1%
Impact of exchange rate differences on cash and cash equivalents 9,750 15,640 60.4%
Cash and cash equivalents at the beginning of the period 494,959 689,412 39.3%
Cash and cash equivalents at the end of the period 689,412 837,782 21.5%
Fourth Quarter 2019 Results
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I I I . M A I N E V E N T S D U R I N G T H E P E R I O D
In October the CyberMonday event was held in Chile, with a relevant participation of Linio and Falabella.com, reaching sales 25% higher than the previous year’s event. Mobile channels accounted for a high share of the sales, with 37% of the sales originated through smartphones. CMR credit card consolidated itself as the preferred mean of payment, concentrating more than 70% of sales.
During the quarter, nine stores were opened:
o In Peru, three stores were opened – Hiberbodega Precio Uno, in Iquitos, Pucallpa and Tarapoto, with a total sale surface of 2.000 m2, 2.400 m2, and 2.500 m2, respectively. In addition, a Sodimac and Tottus store were opened, both in Puruchuco, with sales areas of 9,700 m2 and 6,900 m2 respectively.
o In Colombia, a new store of Falabella opened in Barranquilla, located in the new Mallplaza Buenavista.
o In Mexico, two Sodimac stores were opened, which helped to reach a total number of five stores in that country. The new stores are in Boca del Río and San Mateo and both have a sales surface of 10,000 m2.
o In Chile, a new supermarket Tottus opened in Curauma, with a total sales surface of 2,400 m2.
o Also during October, the first stage of Mallplaza Buenavista was inaugurated in Barranquilla, Colombia with a surface of 58,000 m2. The mall has the largest Falabella store in the country with 150 brands, out of which 50 are new in the city, with relevant brands, such as the VIP rooms of Cinépolis; Africa, a new generation playground; Eva Boulevard, the largest fair dedicated to women arriving in Barranquilla for the first time; and Carulla Fresh Market.
In Peru, Falabella Retail opened a new Distribution Center (DC), specialized in white goods, which will serve our three retail formats. With an investment of approximately USD$ 40 Mn, the DC has a surface coverage of 38,000 m2, mainly designed for big ticket products, like refrigerators, kitchens and washing machines.
We continued advancing in strengthening our logistic capabilities. The network of multi-format Click & Collect exceeded 135 points in stores. We remain committed to providing the best service to our customers, delivering orders in the manner and time our customers prefer.
Following the events in Chile since October 18th, 2019, and the subsequent disruption, some stores, offices and malls from our formats operating in Chile suffered damages and/or operational impacts of various magnitudes, resulted in suspensions of their activities, either temporarily or permanently. The country's main shopping malls closed their doors for a few days. Additionally, the e-commerce and marketplace business units suffered delays in their deliveries for a period of approximately two weeks. By the beginning of December, our stores resumed normal operations. Only six stores in Chile remain closed. The e-commerce and marketplace operations normalized their deliveries at the end of November. At the date of issuance of these financial statements, of our 69 Tottus supermarkets in Chile, 66 remain operational, from our 89 home improvement stores, 86 stores are operational, and lastly, all of the 47 Department Stores in Chile are operational. Falabella S.A. completed the assessment of the damages suffered, which are mainly related to inventory, PP&E and investment property impairments, as well as the economic effects that this situation has generated on the operations of the company's business units in Chile. As a result, a loss of $28,036 Mn (US$ 37 Mn) was recognized at the close of the financial statements. Falabella S.A. and its subsidiaries have insurance policies that cover the risks of impairment, stoppages and other risks related to assets and equity, all of which are contracted with leading companies in the insurance market. Likewise, a gain of $32,953 Mn (US$ 44 Mn) was recognized associated with insurance recovery. Both impacts were recorded in "other income (losses)" in the Income Statement. As stated in note 32 of the financial statements, accrued insurance recovery does not include business interruption insurance coverage.
Fourth Quarter 2019 Results
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Events after the period
On January 8th, 2020, an interim dividend of $17 per share was paid out of 2019 earnings, amounting $42,516 Mn (US$57 Mn). This dividend distribution was approved at a Board meeting held on December 19th, 2019.
Capex Plan Announcement On January 8th 2020, Falabella announced its investment plan of US$2,900 Mn for the period 2020-2023.
o From the total investment, 38% will be invested in technology and logistics, in order to promote digitalization and increase the level of service and efficiency.
o Falabella will invest 31% in opening malls and stores on a regional level. The focus will be on expanding Sodimac in Mexico and further developing IKEA in the region.
o Finally, Falabella will invest 31% (US$ 883 Mn) in optimizing the existing network of stores in the region, through renovations and remodeling, seeking to integrate the physical experience with the digital proposal; improving entertainment proposals in shopping centers; and in repairing damaged stores in Chile.
The presented plan is focused on continue the ongoing transformation Falabella has been carrying out. With lower investments in physical assets, Falabella will have greater flexibility to adapt to new scenarios and opportunities. The plan is focused on:
o Decrease the pace of new store openings by leveraging the capillarity of existing assets. o Focus only on new openings in markets and formats where there is a minor presence. o Increase the resources dedicated to technology with a focus on e-commerce, the development of new
functionalities and on integrating the physical store experience with the digital one. o Enhance the relevant investments already made in logistics and infrastructure with technological improvements
and strengthen the network outside Chile.
On February 11th, 2020 Tottus opened its 78th supermarket in Peru, in the city of Iquitos. This store corresponds to a Hiperbodega Precio Uno format of 1,800 m2. This is the second Hiperbodega in Iquitos, which further strengthening the positioning of Tottus in the city.
On February 21st, 2020, Sodimac opened its sixth store in San Luis de Potosí, Mexico. With a surface of 10,000 m2, the new store is in the Mall El Paseo San Luis Potosí and integrates the formats Homecenter and Constructor.
Fourth Quarter 2019 Results
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I V . R E S U L T S , A S O F D E C E M B E R 2 0 1 9
1. Revenues
During 2019, the company´s consolidated revenues totaled $9,410,775 Mn (US$ 12,569 Mn) with $2,600,507 Mn (USD$ 3,473 Mn) in the fourth quarter this year. Representing a 1.9% increase over the last year and 1.6% on a quarterly basis. Excluding the exchange rate effect (by considering the same exchange rate in 2019 as that used in 2018), this represents growth of 3% and 1%, respectively.
During the year, revenue growth in the online channel stood out, increasing 22% during the year and 19% in the quarter, mainly driven by the growth of Falabella.com in Colombia, Peru and Chile.
In Chile, Banco Falabella´s yearly revenue increased 4.4% and 1.2% on a quarterly basis, driven by a 7.9% annual loan book growth. Sales of retail formats in Chile were affected throughout the year by a weak discretionary consumption backdrop, with fourth quarter affected by the post October 18th events, which affected normal store operating hours, negatively affecting sales. Department Store revenues fell 3.5% throughout the year and 8.3% in the quarter, while Home Improvement revenues fell 3.5% during 2019 and 10.5% in 4Q19. Additionally, supermarket revenues contracted by 3.3% for the year and 11.7% for the quarter, mainly affected by sales of non-food categories.
Consolidated revenue in Peru grew 10.5% during the year and 14.9% during the fourth quarter in comparison with the same period in the previous year. Growth was driven by supermarket sales, which increased 14.0% for the year (21.0% in 4Q19), explained by seven store openings; Home Improvement, whose revenues increased by 8.8% for the year and 11.5% for the quarter; and sales of the department store format, which varied by 7.5% for the year to December and 9.9% for the quarter compared to the previous period.
In Colombia, revenue increased 10.5% for the year and 14.0% in the quarter, compared to the same period last year. The expansion was explained by a 14.9% growth in sales in Department Stores in the last three months, driven by a favorable consumer backdrop, which implied a growth during the year of 8.4%. Banco Falabella Colombia showed an increase in its operating income in local currency of 18.4% for the 12M and 10.6% in 4Q19, as a result of an increase of 24.8% in the loan book portfolio.
Argentina posted a fall of 12.6% in revenues on a yearly basis, whereas there was an expansion of 63.8% in the quarter in respect to the previous year. This is partly explained by a weak consumption dynamic and by the effect of IAS 29.
In Brasil, the sales increased with 14.4% during the year and 14.3% during the quarter with respect to 4Q18, driven by a growth in SSS of 10.8% during the year.
2. Operational Result
The company´s operational results during the year reached $705,475 Mn (US$942 Mn), while the 4Q19 amounted $177.077 Mn (US$237 Mn), which represents a decrease of 19.7% and 32.8% respectively, compared to the same periods in the previous year. This is mainly due to the deterioration in operations in Chile. Without considering the effect of IFRS 16, the operational fall would have been 24.8% and 37.4% during the year and fourth quarter, respectively.
Banco Falabella Chile reached a result of $246,070 Mn (US$328 Mn) during the year, with a depreciation of 10.6% in respect to the 2018. In the quarter, the operative result reached $41.118 Mn (US$ 55 Mn), resulting in a decrease of 39.3% compared to the year before, mainly explained by the increase in the risk costs.
In Chile, Home Improvement recorded a decrease of 46.7% in the operational result accumulated in the year, mainly explained by the lower gross margin. Supermarkets showed an operational loss of $9,052 Mn (- US$12 Mn) and $4,044 (- US$5 Mn) in 4Q19, product fall in sales and deterioration in gross margin, especially in non-food products. In Department Stores, the operational margin decreased -2.7% in 12M19 and 1.3% in the fourth quarter, associated with the deterioration in gross margin.
Mallplaza reached an operational result of $188,221 Mn (US$251 Mn) during the year 2019 and $31,621 Mn (US$ 42 Mn) during the quarter, a fall of 8.1% and 45.2%, respectively. This is explained by payment flexibility related to lease payments provided to tenants of our shopping centers, given the situation after October 18th.
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The business in Peru reached an operational result of $183,527 Mn (US$245 Mn) throughout 2019 and $67,312 Mn (US$90 Mn) in 4Q19. In Colombia, the operational result totaled $68,244 Mn (US$ 91 Mn) during the year and $31,837 (US$42 Mn) during the quarter, mainly explained through the performance of Banco Falabella Colombia, associated with the loan portfolio growth.
3. Non-operating Results and Net Income
The non-operating result for the period presented a loss of $204,550 Mn (US$ 273 Mn) for the total year, 35.7% higher compared to 2018. In 4Q19, the non-operational results increased with 397%, reaching a loss of $51,473 Mn (US$ 69 Mn). The increase is explained by higher financial expenses due to the application of IFRS 16.
The consolidated net profit of the quarter reached $78,844 Mn (US$ 105 Mn) and totaled $295,474 Mn (US$ 395 Mn) during the
year, which is a decrease of 50.9% and 38.2% respectively in comparison with the same period of the previous year. Without
considering the effect of IFRS 16, the cumulative decrease for the year and the quarter would have been 49.2% and 35.7%,
respectively. It should be recalled that the net income does not include revaluation of assets by investment properties, since
Falabella adopted the historical cost method.
4. Consolidated Balance Sheet
Non-bank current assets fell by $123,021 Mn (US$ 164 Mn) compared to December 2018, mainly generated by a drop in
inventories and other current non-financial assets. The decrease in inventories is mainly due to the decrease in the stock of Home
Improvement and Department Stores in Chile. The drop in other current non-financial assets is mainly associated with lower VAT
credit by Mallplaza. Non-current non-banking assets increased by $1,502,687 Mn (US$ 2,007 Mn), mainly due to an increase in
property, plant and equipment as a result of the application of IFRS 16, and investment properties as a result of the development
and acquisition of real estate projects. In the case of the banking business, total assets increased by $1,072,499 Mn (US$ 1,432
Mn) compared to December 2018, this can be explained as there was an increase in loans and receivables from customers, an
increase in credit card placements in Banco Falabella Chile and consumer loans in Banco Falabella Colombia, and an increase in
financial derivative contracts. As a result, total consolidated assets increased by $2,452,165 Mn (US$3,275 Mn).
Non-bank current liabilities increased by $88,051 Mn (US$ 118 Mn) in comparison to December 2018, mainly explained due to
the increase in lease liabilities because of the application of IFRS 16, and in trade and other accounts payable. The latter is related
to increases in the liabilities of Sodimac Chile and in Tottus Chile. This was offset by a fall in other current financial liabilities, due
to the higher loan payments. In turn, the non-banking non-current liabilities increased by $938,525 Mn (US$ 1,254 Mn), which is
mainly explained by the increase in non-current lease liabilities due to the application of IFRS 16. Total liabilities in the banking
business increased by $1,180,335 Mn (US$ 1,576 Mn), mainly due to the increase in deposits and other term deposits and in
financial derivative contracts. The first rise was due to an increase in deposits in Banco Falabella Chile and Banco Falabella
Colombia. This rise in liabilities in the banking business was offset by a fall in other financial obligations due to higher payments
made. As a result, total liabilities increased by $2,206,910 Mn (US$ 2,948 Mn).
5. Consolidated Cash Flow
Cash flow from operating activities of the non-banking business increased by $356,989 Mn (US$ 477 Mn) as of December 2019
compared to the same period of the previous year, due to the higher collections from the sale of goods and services, and lower
tax payments. Cash flow from operating activities of the banking business decreased by $87,293 Mn (US$ 117 Mn), explained
mainly by a net increase in loans and receivables to customers, and a decrease in deposits and other term deposits compared to
the previous year. As a result, cash flow from consolidated operating activities as of December 2019 was $269,066 Mn (US$ 356
Mn) higher than the same period of the previous year.
Cash flow from investing activities of the non-banking business was $77,076 Mn (US$ 103 Mn) lower than the same period of the
previous year. The main reason are the lower amounts from the sale of property, plant and equipment, and higher purchases of
other long-term assets, offset by lower cash flows used to obtain control of subsidiaries or other businesses: in August 2018, Linio
was acquired. Cash flow from investment activities of banking businesses increased by $154,353 Mn (US$206 Mn) compared to
Fourth Quarter 2019 Results
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the previous year, since a net increase in investment instruments available for sale occurred. As a result, cash flow from investing
activities as of December 2019 was $77,277 Mn (US$ 103 Mn) less negative than the same period of 2018.
The cash flow from financing activities of the non-banking business as of December 2019 amounted $225,913 Mn (US$ 302 Mn)
more negative than the comparable period, as a result of lower amounts from the issuance of shares (during the fourth quarter
of 2018 Falabella issued capital in the amount of $390,492 Mn (US$522 Mn)). On the other hand, cash flow from financing activities
of the banking business fell by $172,404 Mn (US$ 230 Mn) compared to the same period of last year due to higher payments of
bonds and other loans. As a result, cash flow from consolidated financing activities decreased by $398,317 Mn (US$532 Mn)
compared to the same period of the previous year.
Fourth Quarter 2019 Results
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V . R E T A I L I N D I C A T O R S
1. Retail Business Revenue
Retail Revenue 4Q19 (CLP million)5,6
Retail Revenue 12M19 (CLP million)
5 All revenue variations are in nominal terms and have been calculated in both Chilean pesos and local currency for each country. 6 Argentina’s revenues are affected by the application of IAS 29.
4Q18 4Q19 Var %Var Local
Currency %
Chile
Department Stores 458,896 420,952 -8.3% -8.3%
Home Improvement 559,489 500,949 -10.5% -10.5%
Supermarkets 204,016 180,188 -11.7% -11.7%
Peru
Department Stores 179,860 197,627 9.9% -1.8%
Home Improvement 165,497 184,465 11.5% 0.3%
Supermarkets 227,780 275,586 21.0% 8.4%
Colombia
Department Stores 153,295 176,206 14.9% 8.3%
Home Improvement 218,356 245,434 12.4% 8.1%
Argentina
Department Stores 48,706 82,611 69.6% 18.2%
Home Improvement 23,123 36,974 59.9% 5.0%
Brazil
Home Improvement 51,892 59,314 14.3% 13.6%
12M18 12M19 Var %Var Local
Currency %
Chile
Department Stores 1,525,908 1,472,211 -3.5% -3.5%
Home Improvement 2,169,506 2,092,653 -3.5% -3.5%
Supermarkets 776,142 750,665 -3.3% -3.3%
Peru
Department Stores 605,025 650,252 7.5% -0.8%
Home Improvement 615,901 669,966 8.8% 0.7%
Supermarkets 773,460 881,830 14.0% 5.2%
Colombia
Department Stores 402,257 436,045 8.4% 8.0%
Home Improvement 783,372 847,930 8.2% 9.4%
Argentina
Department Stores 241,362 217,489 -9.9% 32.6%
Home Improvement 125,248 108,279 -13.5% 27.2%
Brazil
Home Improvement 182,790 209,119 14.4% 13.5%
Fourth Quarter 2019 Results
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Online Sales 4Q19 (CLP million)7
NMV Linio 4Q19 (MM$)
Linio NMV 4Q19 – anual growth Excluding exchange rate effect
7 Online sales include revenue generated in the online cannel for all Retail businesses, excluding home improvent in Colombia and Mexico. * NMV Linio corresponds to the Net Merchandise Value. A measure of the total sum in Chilean pesos of all transactions made through Linio, net of VAT.
Penetración
Tiendas por Departamento 197,651 22.5%
Mejoramiento del Hogar 36,343 4.6%
Supermercados 8,099 1.8%
Total 242,093 11.4%
4Q19
4Q18 4Q19 Var %
NMV Linio * 30,480 55,793 83.0%
153%
87%
65%
51%
Peru Chile Colombia Others
Fourth Quarter 2019 Results
13
Same Store Sales (SSS) Nominal Growth 8, 9, 10, 11
8 All variations are calculated in nominal terms and in the local currency of each country. In Argentina, SSS are calculated net of IIBB. 9 SSS growth includes revenue generated from the online channel of each Business unit. 10 SSS calculation does not include stores that had significant changes in sales area open to the public, due to remodeling, expansions, reductions or closings. 11 In the case of Chile, stores affected for more than 10% of the days of the last quarter are not considered in the calculation, due to the country’s situation post October 18th.
1Q17 2Q17 3Q17 4Q17 2017 1Q18 2Q18 3Q18 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019
Chile
Department Stores 8.1% 6.0% 4.7% 1.7% 4.8% -4.9% 0.2% -7.2% -3.3% -3.6% -3.0% -1.2% -3.5% -3.6% -2.8%
Home Improvement -1.7% -2.4% -2.5% 13.9% 1.6% 4.6% 5.8% 1.9% -2.0% 2.4% -1.7% -4.2% -0.7% -6.1% -3.1%
Supermarkets -2.0% 3.5% 1.5% 2.6% 1.4% 1.7% 1.9% 2.6% -1.2% 1.1% 1.5% -2.4% -1.2% -0.9% -0.8%
Peru
Department Stores -5.9% 5.0% -0.8% 1.4% 0.3% 12.1% 8.4% 3.8% 0.3% 5.4% 0.3% -4.4% 4.6% -2.8% -0.9%
Home Improvement -2.6% 3.6% 5.5% 4.5% 2.7% 6.0% 1.0% 2.9% 3.7% 2.6% 1.7% 3.4% 2.1% -0.7% 1.5%
Supermarkets -1.0% 0.6% 0.2% 1.0% 0.3% 4.8% 10.3% 6.1% 3.5% 6.0% 3.9% -0.5% 2.7% 2.5% 2.2%
Colombia
Department Stores -2.4% -4.4% 0.4% 1.2% -0.9% 0.6% 11.9% 15.0% 9.9% 10.5% 9.8% 9.0% 9.5% 8.6% 9.1%
Home Improvement -2.7% -7.1% -4.2% -5.4% -4.8% -0.9% 4.6% 3.8% 7.7% 3.9% 7.8% 8.1% 8.1% 8.2% 8.1%
Argentina
Department Stores 16.5% 20.4% 25.4% 29.9% 23.6% 38.3% 36.7% 30.7% 27.2% 32.4% 20.2% 23.4% 36.1% 56.2% 35.8%
Home Improvement 14.1% 18.9% 23.0% 29.9% 23.6% 25.6% 23.4% 26.4% 18.5% 23.2% 18.1% 13.5% 16.6% 36.8% 22.2%
Brazil
Home Improvement -3.0% -1.0% 10.6% 3.2% 2.4% 7.9% -1.3% -2.0% 8.8% 3.1% 8.1% 18.2% 11.8% 6.6% 10.8%
Fourth Quarter 2019 Results
14
2. Number of Stores and Sales Area of Retail Businesses 12, 13
3. Number of Shopping Malls and GLA of Real Estate Operators 14, 15
Falabella, through its subsidiaries, also owns approximately 1,000,000 m2 of additional leasable space in free standing locations of Falabella, Sodimac, Tottus, Maestro and others.
12 Sales area includes cashiers and check out areas. In the case of Tottus, this represents approximately 8% of total sales area. This definition may differ from how some peers in the industry measure their sales area, and thus, has implications when comparing sales per square meter. 13 Department stores Peru and Colombia include a Crate & Barrel store. 14 Open includes Power Centers (shopping malls with only two anchor stores, in addition to smaller shops) and Shopping Centers (shopping malls with three anchor stores, in addition to smaller stores) and is not part of Plaza S.A 15 It does not consider Autoplaza as a separate shopping center.
December 2018 December 2019
Sales Area (m²) Stores (#) Sales Area (m²) Stores (#)
Chile
Department Stores 338,698 47 328,169 47
Home Improvement 771,648 90 767,680 89
Supermarkets 204,545 67 224,901 69
Peru
Department Stores 177,298 29 173,415 29
Home Improvement 371,714 56 376,265 55
Supermarkets 243,267 69 264,368 77
Colombia
Department Stores 182,678 27 176,330 25
Home Improvement 385,956 40 386,256 40
Argentina
Department Stores 58,978 11 56,890 10
Home Improvement 94,073 9 94,073 9
Brazil
Home Improvement 162,933 53 172,112 53
Uruguay
Home Improvement 24,849 3 24,849 3
México
Home Improvement 34,705 3 57,209 5
Total Stores 3,051,342 504 3,102,516 511
December 2018 December 2019
GLA (m²) Shopping Malls (#) GLA (m²) Shopping Malls (#)
Chile
Mallplaza 1,355,000 17 1,378,000 17
Open 230,000 10 215,000 9
Peru
Mallplaza 205,000 3 202,000 3
Open 317,000 11 317,000 11
Colombia
Mallplaza 66,000 2 123,000 3
Total Real Estate 2,173,000 43 2,235,000 43
Fourth Quarter 2019 Results
15
4. Sales per Square Meter of Retail Businesses 16
Sales per Square Meter (CLP / sqm)
Sales per Square Meter - 12M19 (CLP / sqm)
16 Revenue divided by average area of the period. The YoY variation corresponds to the variation in Chilean pesos and the variation in local currency. Total sales per square meter is the sum of revenue from the retail business divided by the average total surface of stores for the period. Online sales are included in the total sales figure of each business unit.
4Q18 4Q19 Var %Var Local
Currency %
Chile
Department Stores 1,390,906 1,284,608 -7.6% -7.6%
Home Improvement 725,057 651,205 -10.2% -10.2%
Supermarkets 963,939 804,317 -16.6% -16.6%
Peru
Department Stores 1,015,414 1,135,187 11.8% -0.1%
Home Improvement 444,827 499,638 12.3% 1.0%
Supermarkets 941,778 1,071,003 13.7% 1.9%
Colombia
Department Stores 839,963 999,566 19.0% 12.1%
Home Improvement 566,242 635,418 12.2% 8.0%
Argentina
Department Stores 833,026 1,449,003 73.9% 21.2%
Home Improvement 245,797 393,036 59.9% 5.0%
Brazil
Home Improvement 317,695 344,624 8.5% 7.8%
TOTAL 766,635 784,853 2.4%
12M18 12M19 Var %Var Local
Currency %
Chile
Department Stores 4,696,358 4,492,259 -4.3% -4.3%
Home Improvement 2,835,090 2,708,626 -4.5% -4.5%
Supermarkets 3,618,029 3,374,801 -6.7% -6.7%
Peru
Department Stores 3,417,329 3,725,202 9.0% 0.6%
Home Improvement 1,655,435 1,833,251 10.7% 2.5%
Supermarkets 3,228,153 3,506,129 8.6% 0.2%
Colombia
Department Stores 2,251,452 2,452,791 8.9% 8.6%
Home Improvement 2,077,359 2,194,356 5.6% 6.8%
Argentina
Department Stores 4,167,090 3,812,461 -8.5% 34.6%
Home Improvement 1,391,531 1,147,254 -17.6% 21.3%
Brazil
Home Improvement 1,102,346 1,242,785 12.7% 11.9%
TOTAL 2,767,912 2,780,533 0.5%
Fourth Quarter 2019 Results
16
V I . F I N A N C I A L B U S I N E S S U N I T S 17, 18
CMR Units: Income Statement 19
CMR Units: Balance Sheet Accounts and Operational Information
17 See definitions at the end of the report. 18 The “Allowance for loan losses” line includes the provisions recorder under assets and liabilities. Please refer to the notes of the financial statements. 19 Promotora CMR is shown in an illustrative way. As of January 2019, this operation is already consolidated in Banco Falabella Chile.
Promotora CMR CMR Argentina
4Q18 4Q19 Var. % 4Q18 4Q19 Var. %
Selected Operating Results (Mn CLP) (Th ARS)
Interest income 110,498 118,297 7.1% 964,103 862,752 -10.5%
Fee and commission income 21,155 20,566 -2.8% 828,547 732,121 -11.6%
Total Income 131,653 138,863 5.5% 1,792,650 1,594,873 -11.0%
Interest expense (9,572) (11,971) 25.1% (1,057,751) (302,265) -71.4%
Credit risk cost (33,300) (50,292) 51.0% (289,340) (124,734) -56.9%
Other expenses (17,776) (15,819) -11.0% (256,278) (237,786) -7.2%
Total expenses (60,649) (78,082) 28.7% (1,603,368) (664,786) -58.5%
Gross Profit 71,004 60,782 -14.4% 189,282 930,087 391.4%
Administrative expenses (19,828) (18,309) -7.7% (599,432) (501,684) -16.3%
Operating Income 51,176 42,472 -17.0% (410,150) 428,404 -204.5%
Net income 38,446 31,917 -17.0% (527,912) 365,436 NM
Efficiency ratio 19.0% 16.5% 125.2% 47.6%
12M18 12M19 Var. % 12M18 12M19 Var. %
Selected Operating Results (Mn CLP) (Th ARS)
Interest income 431,456 473,610 9.8% 2,453,131 2,983,332 21.6%
Fee and commission income 76,846 78,514 2.2% 1,929,040 2,204,226 14.3%
Total Income 508,302 552,124 8.6% 4,382,170 5,187,558 18.4%
Interest expense (35,652) (49,500) 38.8% (2,193,897) (1,432,898) -34.7%
Provision for loan losses (113,791) (155,629) 36.8% (574,896) (619,174) 7.7%
Other expenses (70,255) (62,503) -11.0% (632,332) (738,307) 16.8%
Total expenses (219,699) (267,632) 21.8% (3,401,125) (2,790,379) -18.0%
Gross Profit 288,604 284,492 -1.4% 981,045 2,397,180 144.3%
Administrative expenses (81,062) (74,286) -8.4% (1,381,798) (1,491,650) 7.9%
Operating Income 207,541 210,206 1.3% (400,752) 905,530 -326.0%
Net income 156,055 156,975 0.6% (472,749) (88,191) -81.3%
Efficiency ratio 20.1% 16.9% 88.8% 49.5%
Promotora CMR CMR Argentina
dec 18 dec 19 Var. % dec 18 dec 19 Var. %
Selected Balance Sheet Accounts (Mn CLP) (Th ARS)
Loans from customers, gross 1,903,551 2,174,219 14.2% 6,084,299 4,843,553 -20.4%
Allowance for loan losses (124,201) (143,811) 15.8% (331,523) (294,367) -11.2%
Loans from customers, net 1,779,349 2,030,408 14.1% 5,752,776 4,549,186 -20.9%
Total Assets 1,967,461 2,204,881 12.1% 6,880,125 6,077,471 -11.7%
Total Liabilities 1,528,090 1,665,777 9.0% 6,395,883 5,005,613 -21.7%
Total Equity 439,372 539,103 22.7% 484,243 1,071,859 121.3%
Total Liabilities + Total Equity 1,967,461 2,204,881 12.1% 6,880,125 6,077,471 -11.7%
Operational information
NPL (+90 days) 53,315 63,052 18.3% 251,922 198,586 -21.2%
Open Accounts (with balance) 2,598,020 2,748,592 5.8% 463,283 391,496 -15.5%
Average Loan (local currency) 679,741 791,030 16.4% 13,575 12,372 -8.9%
Duration (months) 5.7 5.7 0.0% 3.1 2.7 -11.6%
Ratios
NPL / Loans from customers, gross 2.8% 2.9% 4.1% 4.1%
Allowance for loan losses/NPL 2.3 2.3 1.3 1.5
ROAE 39.3% 32.2% N/A N/A
ROAA 8.9% 7.8% N/A N/A
Fourth Quarter 2019 Results
17
Banco Falabella: Income Statement
Banco Falabella: Balance Sheet Accounts and Operational Information
Banco Falabella Chile Banco Falabella Perú Banco Falabella Colombia
4Q18 4Q19 Var. % 4Q18 4Q19 Var. % 4Q18 4Q19 Var. %
(Mn CLP) (Th SOL) (Mn COP)
Interest income and adjustements 187,933 190,950 1.6% 221,892 232,585 4.8% 159,742 184,705 15.6%
Interest expense and adjustements (27,014) (27,204) 0.7% (28,565) (31,560) 10.5% (31,083) (40,284) 29.6%
Net interest income and adjustments 160,919 163,747 1.8% 193,328 201,026 4.0% 128,659 144,421 12.3%
Fee and commission income 30,088 31,217 3.8% 65,290 73,145 12.0% 68,866 71,809 4.3%
Fee and commission expense (23,165) (21,668) -6.5% (23,121) (30,251) 30.8% (17,689) (16,602) -6.1%
Net fee and commission income 6,923 9,548 37.9% 42,169 42,894 1.7% 51,178 55,207 7.9%
Net income (expense) from financial operations 2,424 3,635 50.0% 2,437 4,027 65.2% 1,855 1,958 5.6%
Other operating net income 2,237 794 -64.5% 3,815 4,047 6.1% 3,475 3,261 -6.2%
Net operating profit before provisions for loan losses 172,503 177,724 3.0% 241,750 251,993 4.2% 185,167 204,848 10.6%
Provision for loan losses (52,607) (79,415) 51.0% (46,206) (80,778) 74.8% (72,208) (65,501) -9.3%
Operating expenses (52,192) (57,191) 9.6% (150,011) (146,138) -2.6% (91,146) (105,419) 15.7%
Operating Income 67,704 41,118 -39.3% 45,533 25,078 -44.9% 21,813 33,928 55.5%
Net Income 59,035 33,060 -44.0% 29,464 17,602 -40.3% 12,697 33,520 164.0%
Efficiency ratio 30.3% 32.2% 62.1% 58.0% 49.2% 51.5%
12M18 12M19 Var. % 12M18 12M19 Var. % 12M18 12M19 Var. %
(Mn CLP) (Th SOL) (Mn COP)
Interest income and adjustements 734,015 764,610 4.2% 902,554 918,019 1.7% 567,059 715,908 26.2%
Interest expense and adjustements (100,183) (110,572) 10.4% (120,603) (118,276) -1.9% (107,051) (151,168) 41.2%
Net interest income and adjustments 633,833 654,038 3.2% 781,951 799,744 2.3% 460,008 564,741 22.8%
Fee and commission income 114,343 123,961 8.4% 264,405 281,842 6.6% 250,771 269,866 7.6%
Fee and commission expense (91,135) (84,811) -6.9% (106,693) (128,810) 20.7% (59,333) (60,999) 2.8%
Net fee and commission income 23,208 39,150 68.7% 157,712 153,032 -3.0% 191,437 208,867 9.1%
Net income (expense) from financial operations 8,994 15,946 77.3% 9,023 12,011 33.1% 4,796 10,216 113.0%
Other operating net income 5,617 2,703 -51.9% 21,397 27,460 28.3% 10,417 5,549 -46.7%
Net operating profit before provisions for loan losses 671,652 711,837 6.0% 970,082 992,246 2.3% 666,658 789,372 18.4%
Provision for loan losses (192,020) (243,664) 26.9% (266,666) (279,905) 5.0% (223,698) (168,617) -24.6%
Operating expenses (204,484) (222,103) 8.6% (583,697) (590,603) 1.2% (354,043) (412,971) 16.6%
Operating Income 275,148 246,070 -10.6% 119,719 121,737 1.7% 88,917 207,785 133.7%
Net Income 215,286 186,434 -13.4% 79,646 84,818 6.5% 52,318 138,399 164.5%
Efficiency ratio 30.4% 31.2% 60.2% 59.5% 53.1% 52.3%
Banco Falabella Chile Banco Falabella Perú Banco Falabella Colombia
dec 18 dec 19 Var. % dec 18 dec 19 Var. % dec 18 dec 19 Var. %
Selected Balance Sheet Accounts (Mn CLP) (Th SOL) (Mn COP)
Cash and deposits in banks 184,695 180,757 -2.1% 420,697 373,181 -11.3% 148,651 171,058 15.1%
Trading investments 712,874 739,839 3.8% 297,526 385,372 29.5% 196,264 181,026 -7.8%
Loans from customers, gross 3,625,620 3,911,440 7.9% 3,101,834 3,327,483 7.3% 3,052,122 3,809,072 24.8%
Allowance for loan losses (226,765) (255,008) 12.5% (240,243) (255,243) 6.2% (238,488) (223,927) -6.1%
Loans from customers, net 3,398,855 3,656,432 7.6% 2,861,591 3,072,239 7.4% 2,813,633 3,585,145 27.4%
Total Assets 4,687,788 5,367,978 14.5% 4,049,104 4,415,424 9.0% 3,444,306 4,240,402 23.1%
Deposits 514,922 591,640 14.9% 499,286 483,305 -3.2% 516,805 618,727 19.7%
Time deposits 1,622,238 1,878,148 15.8% 2,175,207 2,473,297 13.7% 1,929,040 2,260,969 17.2%
Total deposits 2,137,160 2,469,788 15.6% 2,674,493 2,956,602 10.5% 2,445,844 2,879,696 17.7%
Other financial liabilities 819,166 573,004 -30.1% 76,528 316,114 313.1% 225,695 286,808 27.1%
Total Liabilities 3,996,298 4,566,870 14.3% 3,299,360 3,645,538 10.5% 2,991,304 3,654,909 22.2%
Total Equity 691,490 801,108 15.9% 749,744 769,886 2.7% 453,002 585,493 29.2%
Total Liabilities + Total Equity 4,687,788 5,367,978 14.5% 4,049,104 4,415,424 9.0% 3,444,306 4,240,402 23.1%
Operational information
NPL (+90 days) 101,901 129,755 102,385 95,565 70,796 68,443
Current, Saving and checking Accounts 1,011,396 1,060,605 925,449 998,265 1,414,388 1,540,413
Open Accounts (with balance) 70,134 27,720 1,007,503 1,126,694 1,018,453 1,086,499
Average Loan (local currency) NM NM 2,809 2,804 1,775,423 1,877,516
Duration (months) 15.6 15.7 7.2 7.3 12.0 12.5
ATMs 416 391 172 173 66 66
Branches 102 95 69 70 90 91
Ratios
NPL / Loans from customers, gross 2.8% 3.3% 3.3% 2.9% 2.3% 1.8%
Allowance for loan losses/NPL 2.2 2.0 2.3 2.7 3.4 3.3
Basilea 14.2% 15.5% 17.3% 15.4% 11.1% 10.9%
ROAE 20.4% 25.7% 11.0% 11.3% 11.2% 25.8%
ROAA 2.0% 3.7% 1.9% 2.1% 1.8% 3.6%
Fourth Quarter 2019 Results
18
Percentage of Sales with CMR Card 20
20 Porcentaje de venta con CMR: es la venta a través de la tarjeta con respecto a la venta total de cada negocio.
1Q17 1H17 9M17 2017 1Q18 1H18 9M18 12M18 1Q19 1H19 9M19 12M19
Chile - Falabella 42.0% 45.2% 45.6% 46.1% 44.1% 47.0% 46.9% 47.0% 45.6% 50.0% 46.4% 47.2%
Chile - Sodimac 26.7% 27.8% 27.5% 27.6% 26.0% 26.4% 26.8% 26.9% 25.9% 26.1% 26.6% 26.3%
Chile - Tottus 18.6% 19.4% 19.9% 20.1% 19.1% 19.4% 19.7% 20.2% 19.7% 19.9% 20.7% 18.7%
Peru - Falabella, Sodimac & Tottus 35.2% 37.3% 37.3% 37.6% 32.8% 35.6% 35.6% 36.1% 35.3% 38.6% 37.0% 37.4%
Colombia - Falabella & Sodimac 20.4% 22.1% 21.6% 23.1% 19.6% 22.0% 22.1% 23.3% 20.2% 24.2% 22.0% 25.7%
Argentina - Falabella & Sodimac 23.0% 25.0% 25.1% 25.3% 25.7% 23.1% 22.9% 22.8% 18.2% 16.1% 13.9% 14.8%
Fourth Quarter 2019 Results
19
V I I . O T H E R I N D I C A T O R S
Average Collection Period 21, Average Payment Period and Days of Inventory22
Chile
International Operations 23
21 Collection period does not include accounts receivable of the retail businesses (department stores, home improvement and supermarkets) with Promotora CMR 22 Average Collection Period (does not include Promotora CMR and Plaza S.A.): Current trade and other receivables *90/ Revenue Average Collection Period for Promotora CMR: Duration (lineal) * 30 Average Collection Period for Plaza S.A. corresponds to the payment of the common expenses of the building. Average Payable Period: Current trade and other current accounts payable * 90 /Cost of sales. Inventory turnover: Inventories (net) * 90 / Cost of sales 23 ndicators include retail operations only, except Peru, which includes Maestro's two real estate companies.
Dep. Stores Home Improv. Supermarkets Promotora CMR Plaza S.A.
4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19
Average Collection Period 9.9 14.3 20.4 22.5 5.9 17.2 117.0 127.8 34.0 48.0
Average Payment Period 32.2 48.2 32.6 43.2 20.2 54.6 NM NM NM NM
Days of inventory 98.4 90.8 93.6 80.6 45.8 53.4 NM NM NM NM
Peru Argentina Colombia Brazil
4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19
Average Collection Period 4.1 5.1 27.8 13.4 6.7 6.1 34.0 50.3
Average Payment Period 51.9 53.3 73.8 65.1 48.2 57.6 100.3 79.0
Days of inventory 91.5 85.7 106.6 62.5 73.2 74.4 153.3 112.4
Fourth Quarter 2019 Results
20
V I I I . O P E R A T I N G R E S U L T S B Y B U S I N E S S U N I T 24
Operating Results 4Q19 (CLP million)
Chile
International Operations
Others
24 Resultados Operacionales internacionales incluyen negocios que desarrollan giro bancario en Perú y Colombia, negocio de crédito en Argentina y negocio de centros comerciales en Perú.
Department Stores Home Improvement Supermarkets
4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps)
Revenues 458,896 420,952 -8.3% 559,489 500,949 -10.5% 204,016 180,188 -11.7%
Gross Profit 178,244 144,736 -18.8% 181,150 142,536 -21.3% 53,168 47,453 -10.7%
Gross Margin 38.8% 34.4% -446 32.4% 28.5% -392 26.1% 26.3% 27
SG&A (150,396) (139,227) -7.4% (150,412) (142,914) -5.0% (49,482) (51,497) 4.1%
SG&A / Revenues -32.8% -33.1% -30 -26.9% -28.5% -164 -24.3% -28.6% -433
Operating Profit 27,848 5,509 -80.2% 30,738 (378) -101.2% 3,686 (4,044) -209.7%
Operating Margin 6.1% 1.3% -476 5.5% -0.1% -557 1.8% -2.2% -405
EBITDA 38,612 25,486 -34.0% 43,567 23,505 -46.0% 9,658 7,165 -25.8%
EBITDA Margin 8.4% 6.1% -236 7.8% 4.7% -309 4.7% 4.0% -76
Banco Falabella Chile
4Q18 4Q19 (%, bps)
Revenues 220,257 222,961 1.2%
Gross Profit 119,896 98,309 -18.0%
Gross Margin 54.4% 44.1% -1034
SG&A (52,192) (57,191) 9.6%
SG&A / Revenues -23.7% -25.7% -195
Operating Profit 67,704 41,118 -39.3%
Operating Margin 30.7% 18.4% -1230
EBITDA 69,758 45,771 -34.4%
EBITDA Margin 31.7% 20.5% -1114
Peru Colombia Argentina Brazil
4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps)
Revenues 644,744 741,023 14.9% 208,657 237,964 14.0% 83,669 137,060 63.8% 51,892 59,314 14.3%
Gross Profit 221,299 245,328 10.9% 80,617 92,060 14.2% 17,218 65,685 281.5% 17,955 17,202 -4.2%
Gross Margin 34.3% 33.1% -122 38.6% 38.7% 5 20.6% 47.9% 2735 34.6% 29.0% -560
SG&A (158,503) (178,016) 12.3% (56,081) (60,222) 7.4% (40,646) (56,418) 38.8% (21,622) (23,180) 7.2%
SG&A / Revenues -24.6% -24.0% 56 -26.9% -25.3% 157 -48.6% -41.2% 742 -41.7% -39.1% 259
Operating Profit 62,796 67,312 7.2% 24,536 31,837 29.8% (23,428) 9,267 -139.6% (3,667) (5,978) 63.0%
Operating Margin 9.7% 9.1% -66 11.8% 13.4% 162 -28.0% 6.8% 3476 -7.1% -10.1% -301
EBITDA 83,784 95,297 13.7% 30,193 39,886 32.1% (18,951) 12,853 -167.8% (2,241) (4,699) 109.7%
EBITDA Margin 13.0% 12.9% -13 14.5% 16.8% 229 -22.6% 9.4% 3203 -4.3% -7.9% -360
Plaza S.A. Other, elimnation & anulment Falabella
4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps) 4Q18 4Q19 (%, bps)
Revenues 90,433 72,273 -20.1% 37,658 27,822 -26.1% 2,559,711 2,600,507 1.6%
Gross Profit 69,407 47,718 -31.2% 21,951 15,049 -31.4% 960,905 916,076 -4.7%
Gross Margin 76.7% 66.0% -1072 58.3% 54.1% -420 37.5% 35.2% -231
SG&A (11,677) (16,097) 37.9% (6,256) (14,236) NM (697,268) (738,999) 6.0%
SG&A / Revenues -12.9% -22.3% -936 -16.6% -51.2% -3455 -27.2% -28.4% -118
Operating Profit 57,730 31,621 -45.2% 15,694 812 -94.8% 263,637 177,077 -32.8%
Operating Margin 63.8% 43.8% -2008 41.7% 2.9% -3876 10.3% 6.8% -349
EBITDA 70,210 45,116 -35.7% 27,861 (2,468) -108.9% 352,451 287,913 -18.3%
EBITDA Margin 77.6% 62.4% -1521 74.0% -8.9% -8285 13.8% 11.1% -270
Fourth Quarter 2019 Results
21
Operating Results 12M19 (CLP million)
Chile
International Operations
Others
Department Stores Home Improvement Supermarkets
12M18 12M19 (%, bps) 12M18 12M19 (%, bps) 12M18 12M19 (%, bps)
Revenues 1,525,908 1,472,211 -3.5% 2,169,506 2,092,653 -3.5% 776,142 750,665 -3.3%
Gross Profit 520,756 456,360 -12.4% 677,122 619,529 -8.5% 201,268 188,939 -6.1%
Gross Margin 34.1% 31.0% -313 31.2% 29.6% -161 25.9% 25.2% -76
SG&A (488,408) (496,614) 1.7% (569,543) (562,185) -1.3% (189,347) (197,991) 4.6%
SG&A / Revenues -32.0% -33.7% -172 -26.3% -26.9% -61 -24.4% -26.4% -198
Operating Profit 32,348 (40,254) -224.4% 107,579 57,344 -46.7% 11,921 (9,052) -175.9%
Operating Margin 2.1% -2.7% -485 5.0% 2.7% -222 1.5% -1.2% -274
EBITDA 71,558 39,268 -45.1% 157,392 153,556 -2.4% 33,323 33,107 -0.6%
EBITDA Margin 4.7% 2.7% -202 7.3% 7.3% 8 4.3% 4.4% 12
Banco Falabella Chile
12M18 12M19 (%, bps)
Revenues 853,975 891,275 4.4%
Gross Profit 479,632 468,173 -2.4%
Gross Margin 56.2% 52.5% -364
SG&A (204,484) (222,103) 8.6%
SG&A / Revenues -23.9% -24.9% -97
Operating Profit 275,148 246,070 -10.6%
Operating Margin 32.2% 27.6% -461
EBITDA 282,902 264,107 -6.6%
EBITDA Margin 33.1% 29.6% -350
Peru Colombia Argentina Brazil
12M18 12M19 (%, bps) 12M18 12M19 (%, bps) 12M18 12M19 (%, bps) 12M18 12M19 (%, bps)
Revenues 2,271,020 2,509,792 10.5% 606,927 670,512 10.5% 442,347 386,684 -12.6% 182,790 209,119 14.4%
Gross Profit 733,423 809,714 10.4% 244,687 280,698 14.7% 181,801 174,345 -4.1% 63,328 70,841 11.9%
Gross Margin 32.3% 32.3% -3 40.3% 41.9% 155 41.1% 45.1% 399 34.6% 33.9% -77
SG&A (568,340) (626,187) 10.2% (205,606) (212,455) 3.3% (194,553) (167,971) -13.7% (80,073) (81,927) 2.3%
SG&A / Revenues -25.0% -24.9% 8 -33.9% -31.7% 219 -44.0% -43.4% 54 -43.8% -39.2% 463
Operating Profit 165,083 183,527 11.2% 39,081 68,244 74.6% (12,752) 6,374 -150.0% (16,745) (11,086) -33.8%
Operating Margin 7.3% 7.3% 4 6.4% 10.2% 374 -2.9% 1.6% 453 -9.2% -5.3% 386
EBITDA 243,564 284,634 16.9% 60,972 98,035 60.8% (5,645) 17,862 -416.4% (12,069) 404 -103.3%
EBITDA Margin 10.7% 11.3% 62 10.0% 14.6% 457 -1.3% 4.6% 590 -6.6% 0.2% 680
Plaza S.A. Other, elimnation & anulment
12M18 12M19 (%, bps) 12M18 12M19 (%, bps) 12M18 12M19 (%, bps)
Revenues 314,532 309,598 -1.6% 94,195 118,267 25.6% 9,237,342 9,410,775 1.9%
Gross Profit 241,844 230,146 -4.8% 81,867 63,524 -22.4% 3,425,727 3,362,269 -1.9%
Gross Margin 76.9% 74.3% -255 86.9% 53.7% -3,320 37.1% 35.7% -136
SG&A (36,938) (41,925) 13.5% (9,518) (47,436) 398.4% (2,546,809) (2,656,794) 4.3%
SG&A / Revenues -11.7% -13.5% -180 -10.1% -40.1% -3,001 -27.6% -28.2% -66
Operating Profit 204,906 188,221 -8.1% 72,349 16,088 -77.8% 878,918 705,475 -19.7%
Operating Margin 65.1% 60.8% -435 76.8% 13.6% -6,320 9.5% 7.5% -202
EBITDA 251,563 238,307 -5.3% 120,689 12,056 -90.0% 1,204,249 1,141,336 -5.2%
EBITDA Margin 80.0% 77.0% -301 128.1% 10.2% -11,793 13.0% 12.1% -91
Falabella
Fourth Quarter 2019 Results
22
I X . F I N A N C I A L S T R U C T U R E
Total liabilities as of December 31th, 2019 reached $12,101,058 Mn (US$ 16,162 Mn). In turn, the leverage of the non-banking
business25 amounted to 1.04x.
Considering the financial debt26 of the non-banking Business, the ratio of Net Financial Debt / EBITDA was 3.48x. This ratio differs
from that reported until December 2018 because it considers Promotora CMR within the banking segment. The securities
presented as of December 31th, 2018 have been restated, for comparability purposes.
If Promotora CMR would had been incorporated in the non-banking business, this ratio would have been 3.10x as of December
2019.
Falabella’s firm-wide policy is to raise debt in local currency, or to hedge to local currency any debt raised in foreign currency.
Under 144ª/Reg S, the company has three bonds, one for US$ 500 million and another two US$ 400 million, both of which are
fully hedged with swaps, capital and interest, to maturity.
Leverage Non-Banking Operations
Net Financial Debt / EBITDA Non-Banking 27
25 Non-banking operations leverage = total non-banking operations liabilities divided by total equity. 26 Non-banking business financial debt = total current non-bank operations liabilities + total non- current non-banking operations liabilities. 27 EBITDA = Gross Profit – Distribution costs – Administrative costs – Other expenses, by function + Depreciations; Net Financial Debt = Current financial liabilities – Financial Assets (Hedges) – Cash & Cash Equivalents.
0.911.04
dec-18 dec-19
3.38 3.48
dec-18 dec-19
Fourth Quarter 2019 Results
23
Debt Maturity Profile 28
Debt Maturity Profile (CLP million)
Total Consolidated Financial Debt (without banking operations): $ 3,128,475 Mn
Debt Maturity Profile (US$ million) 29
Total Consolidated Financial Debt (withouth banking operations): US$ 4,179 Mn
28 Total consolidated financial debt does not include the banking operations of the Falabella Group (Banco Falabella Chile, Banco Falabella Peru and Banco Falabella Colombia) or accrued interests; however, it does include Promotora CMR and CMR Argentina. 29 Debt converted to US$ using the local currency exchange rate for each country at the close of the period.
419,015
265,553 234,165
601,124
86,805
1,521,813
2020 2021 2022 2023 2024 2025+
560355 313
803
116
2,032
2020 2021 2022 2023 2024 2025+
Fourth Quarter 2019 Results
24
X . F A L A B E L L A F I N A N C I A L S T A T E M E N T S 30
30 Banking Business does not include CMR Argentina.
For the year ended as of
31-Dec-19
For the year ended as of
31-Dec-18
TH CLP TH CLP
Statement of Income
Non-banking Business
Revenue from continuing operations 8,053,582,835 7,976,898,405
Cost of sales (5,433,070,250) (5,255,756,353)
Gross Profit 2,620,512,585 2,721,142,052
Distribution costs (127,651,886) (115,035,376)
Administrative expenses (1,960,593,725) (1,904,010,235)
Other expenses, by function (141,899,290) (139,868,203)
Other gains (losses) 20,796,536 24,657,249
Financial income 27,400,950 36,224,345
Financial expenses (209,910,800) (181,142,094)
Equity interest in profits (losses) of associates accounted for using the equity method 336,784 7,092,186
Foreign currency translation (22,065,192) (15,580,747)
Income from indexation units (21,944,001) (22,494,868)
Profit (Loss), before Taxes 184,981,961 410,984,309
Income tax expense (62,097,989) (101,167,095)
Profit (loss) from Non-banking Business 122,883,972 309,817,214
Banking Services (Presentation)
Interest and indexation revenue 1,108,745,967 1,030,424,240
Interest and indexation expenses (183,119,743) (159,244,897)
Net Income from Interest and Indexation 925,626,224 871,179,343
Fee revenue 245,043,799 222,880,446
Fee expenses (116,057,421) (117,165,207)
Net Fee Income 128,986,378 105,715,239
Net income from financial operations 17,187,950 20,883,343
Net exchange gains (losses) 4,289,403 (8,667,556)
Other operating income 3,402,024 7,139,460
Provision for loan losses (337,736,214) (291,664,726)
Total Operating Income, net 741,755,765 704,585,103
Employee remunerations and expenses (149,509,710) (142,834,516)
Administrative expenses (197,819,946) (177,860,670)
Depreciation and amortization (34,996,501) (21,175,299)
Other operating expenses (44,322,854) (46,024,862)
Total Operating Expenses (426,649,011) (387,895,347)
Operating Income 315,106,754 316,689,756
Income from equity method investments in companies 834,977 551,214
Income before Income Taxes 315,941,731 317,240,970
Income tax expense (82,649,229) (83,330,806)
Profit (loss) from Banking Business 233,292,502 233,910,164
Profit (Loss) 356,176,474 543,727,378
Profit (loss), Attributable to:
Owners of the parent 295,473,530 478,468,376
Non-controlling interests 60,702,944 65,259,002
Profit (Loss) 356,176,474 543,727,378
Earnings per share
Basic earnings per share
Basic earnings (loss) per share from continuing operations 0.12 0.19
Basic Earnings (Loss) per Share 0.12 0.19
Diluted Earnings (Loss) per Share
From continuing operations 0.12 0.19
Diluted Earnings (Loss) per Share 0.12 0.19
Fourth Quarter 2019 Results
25
31-dec-19 31-dec-18
Balance Sheet TH CLP TH CLP
Assets
Non-banking Businesses
Current assets
Cash and cash equivalents 299,965,353 317,491,382
Other financial assets 14,577,323 25,831,939
Other non-financial assets 97,397,454 127,027,906
Trade and other accounts receivable 503,747,308 505,261,560
Accounts receivable from related parties 44,176,657 60,013,844
Inventory 1,332,853,655 1,410,494,616
Tax assets 117,161,072 86,778,115
Total of current assets different from those assets or disposal groups classified as held for sale or as held for
distribution to owners 2,409,878,822 2,532,899,362
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners 17,371,457 17,371,457
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners 17,371,457 17,371,457
Total Current Assets 2,427,250,279 2,550,270,819
Non-current Assets
Other financial assets 204,578,162 105,525,159
Other non-financial assets 103,842,937 95,161,666
Accounts receivable 11,126,047 9,004,961
Investments accounted for using the equity method 191,478,678 135,735,296
Intangible assets other than goodwill 342,682,434 312,876,174
Goodwill 649,149,802 625,914,880
Property, plant and equipment 3,698,385,781 2,725,338,067
Investment properties 3,235,069,703 2,972,046,449
Non-current tax assets 17,420,067 16,341,601
Deferred tax assets 212,284,708 165,387,150
Total Non-current Assets 8,666,018,319 7,163,331,403
Total Assets – Non-banking Business 11,093,268,598 9,713,602,222
Banking Services Assets (Presentation)
Cash and bank deposits 304,355,220 303,217,364
Transactions with settlement in progress 80,926,931 57,290,605
Financial assets held for trading 179,336,474 155,634,743
Financial derivative contracts 411,178,302 88,101,263
Loans and accounts receivable from clients 5,219,216,732 4,631,682,308
Available for sale instruments 681,030,022 658,887,042
Investments in companies 3,721,554 3,179,466
Intangibles 78,118,482 68,260,141
Property, plant and equipment 72,907,960 41,384,274
Current taxes 12,694,107 6,934,952
Deferred taxes 48,804,829 49,592,217
Other assets 148,111,627 103,738,704
Total Bank Services Assets 7,240,402,240 6,167,903,079
Total Assets 18,333,670,838 15,881,505,301
Fourth Quarter 2019 Results
26
31-dec-19 31-dec-18
TH CLP TH CLP
Net Equity and Liabilities
Non-banking Business
Other financial liabilities 443,932,448 558,213,658
Leasing liabilities, current 82,881,467 -
Trade and other accounts payable 1,109,205,979 1,019,436,064
Accounts payable to related parties 17,092,382 15,308,531
Other current provisions 23,758,134 24,732,430
Current tax liabilities 30,806,089 27,485,565
Employee benefits provisions 149,449,341 143,333,626
Other non-financial liabilities 165,561,711 146,127,369
Total Current Liabilities 2,022,687,551 1,934,637,243
Non-current Liabilities
Other financial liabilities 2,813,299,285 2,806,585,586
Leasing liabilities, non-current 900,374,562 -
Other liabilities 1,920,686 1,089,919
Other long-term provisions 9,590,858 9,324,355
Deferred tax liabilities 613,982,006 594,329,358
Employee benefits provision 55,968,813 45,182,842
Other non-financial liabilities 55,025,873 55,124,675
Total Non-current Liabilities 4,450,162,083 3,511,636,735
Total Non-banking Business Liabilities 6,472,849,634 5,446,273,978
Banking Services Liabilities (Presentation)
Deposits and other demand liabilities 802,372,070 639,081,704
Transactions with settlement in progress 73,993,355 46,413,806
Time deposits and other term deposits 3,027,251,232 2,538,382,394
Financial derivative contracts 458,352,017 87,064,300
Due to banks 547,171,749 510,566,109
Debt instruments issued 263,878,200 268,117,240
Other financial obligations 89,407,460 106,133,093
Leasing liabilities 35,524,567 -
Current taxes 2,973,670 91,904
Deferred taxes - -
Provisions 32,017,182 41,430,388
Other liabilities 295,267,626 210,593,162
Total Banking Services Liabilities 5,628,209,128 4,447,874,100
Total Liabilities 12,101,058,762 9,894,148,078
Net Equity
Issued capital 919,419,389 919,419,389
Retained earnings 4,439,393,886 4,421,138,544
Share premium 93,482,329 93,482,329
Own shares in portfolio (43,405,118) (44,808,966)
Other reserves (149,943,365) (321,368,626)
Equity attributable to owners of the parent 5,258,947,121 5,067,862,670
Non-controlling interests 973,664,955 919,494,553
Total Equity 6,232,612,076 5,987,357,223
Total Equity and Liabilities 18,333,670,838 15,881,505,301
Fourth Quarter 2019 Results
27
31-dec-19 31-dec-18 TH$ TH$
Statement of cash flows
Cash flows provided by (used in) operating activities
Non-banking Business (Presentation)
Classes of proceeds from operating activities
Proceeds from sale of goods and providing services 9,662,676,818 9,334,783,508
Classes of payments
Payment to suppliers for supplying goods and services (7,590,559,336) (7,595,908,074)
Payments to and on account of employees (1,089,947,524) (1,067,553,587)
Income taxes refunded (paid) (106,184,750) (140,370,761)
Other cash inflows (outflows) (93,396,237) (105,351,324)
Subtotal net cash flows provided by Non-banking Business operating activities 782,588,971 425,599,762
Banking Services (Presentation)
Consolidated net income (loss) for the period 233,292,502 233,910,164
Charges (credits) to income that do not involve cash movements:
Depreciation and amortization 34,996,501 21,175,299
Credit risk provision 410,002,119 387,190,485
Net profit from equity method investments (834,977) (551,214)
Other charges that do not involve significant cash flow movements 82,649,230 83,330,806
Net change in interest, indexations and fees accrued on assets and liabilities 2,315,390 (703,358)
Changes in assets and liabilities affecting operating cash flow:
Net decrease in bank borrowings
Net increase in loans and accounts receivable from clients (979,583,572) (800,498,943)
Net decrease in instruments held for trading 17,132,815 (63,143,345)
Increase in deposits and other demand obligations 154,943,734 95,927,483
Increase in deposits and other time deposits 466,514,110 540,771,952
Increase in obligations with banks 75,986,826 (2,676,183)
Other use of cash (39,500,188) 51,104,163
Subtotal net cash flows provided by Banking Services operating activities 457,914,490 545,837,309
Net cash flows provided by operating activities 1,240,503,461 971,437,071
Cash flows provided by (used in) investing activities
Non-banking Business (Presentation)
Cash flows from loss of control of subsidiaries or other businesses 1,898,806 -
Cash flows used to obtain control of subsidiaries or other businesses - (87,420,365)
Contributions made to related companies (24,048,504) (3,997,815)
Loans to related parties (8,247,990) (38,220,224)
Proceeds from disposal of property, plant and equipment 7,641,469 86,782,388
Additions to property, plant and equipment (367,167,794) (362,589,652)
Proceeds from disposal of intangible assets
Additions to intangible assets (65,317,189) (55,153,317)
Proceeds from other long-term assets
Additions to other long-term assets (183,581,724) (100,630,655)
Dividends received 10,881,230 5,396,419
Interest received 11,556,512 19,291,700
Other cash inflows (outflows) 2,185,044 (582,606)
Subtotal net cash flows used in investing activities in the Non-banking Business (614,200,140) (537,124,127)
Banking Services (Presentation)
Net (Increase) decrease in investment securities available for sale 148,697,225 (1,920,294)
Additions to property, plant and equipment (30,574,836) (33,036,205)
Dividends received from investments in companies 638,601 503,392
Other sources of cash 1,581,946 443,055
Subtotal net cash flows used in Banking Services investing activities 120,342,936 (34,010,052)
Net cash flows used in investing activities (493,857,204) (571,134,179)
Cash flows provided by (used in) financing activities
Proceeds from issuance of shares 14,951,189 397,209,317
Payments to acquire own shares 1,301,278 (14,881,439)
Proceeds from long-term loans 199,154,400 115,417,743
Proceeds from short-term loans 1,070,683,908 1,933,703,642
Total proceeds from loans 1,269,838,308 2,049,121,385
Payment of loans (1,517,463,862) (2,390,635,190)
Dividends paid (212,541,867) (154,142,646)
Interest paid (148,775,186) (165,482,272)
Other cash inflows (outflows) 16,563,489 (71,402,887)
Subtotal net cash flows provided by (used in) Non-banking Business financing activities (576,126,651) (350,213,732)
Banking Services (Presentation)
Retrieval of letters of credit (10,071,569) (10,824,643)
Bond Issuance (payment) (4,239,041) 25,860,469
Payments of bonds and other long-term liabilities (39,381,186) 127,350,000
Other cash outflows 15,902,077 (7,771,804)
Subtotal net cash flows provided by (used in) Banking Services financing activities (37,789,719) 134,614,022
Net cash flows used in financing activities (613,916,370) (215,599,710)
Net decrease in cash and cash equivalents, before the effect of changes in the exchange rate 132,729,887 184,703,182
Effects of changes in the exchange rate on cash and cash equivalents
Effects of changes in the exchange rate on cash and cash equivalents 15,640,299 9,749,830
Net decrease in cash and cash equivalents 148,370,186 194,453,012
Cash and cash equivalents at beginning of period 689,411,677 494,958,665
Cash and cash equivalents at end of period 837,781,863 689,411,677
Fourth Quarter 2019 Results
28
Cash Flow – Chilean Operations (CLP th)
Cash Flow – International Operations (CLP th)
December 2019 Department Stores Home Improvement Supermarkets Banco Falabella Plaza S.A.
Cash flow from operating activities 41,385,229 238,922,710 67,950,807 348,486,100 222,937,457
Cash flow from investing activities (122,535,891) (88,643,004) (41,029,165) 167,140,337 (78,178,426)
Cash flow from financing activities 79,230,621 (150,893,065) (28,504,514) (354,705,011) (160,762,414)
Increase (decrease) in cash and cash equivalents (1,920,041) (613,359) (1,582,872) 160,921,426 (16,003,383)
Impact of exchange rate differences on cash and cash equivalents 396,911 (3,087,154) (174,147) - 170,404
Cash and cash equivalents at the beginning of the period 57,456,963 26,498,167 15,210,971 253,159,175 51,555,592
Cash and cash equivalents at the end of the period 56,260,773 22,797,654 13,473,556 414,080,601 35,722,613
December 2018 Department Stores Home Improvement Supermarkets Banco Falabella Plaza S.A.
Cash flow from operating activities 65,973,269 39,873,467 (10,930,280) 350,462,156 206,879,633
Cash flow from investing activities (79,136,259) (85,510,422) (39,697,361) (294,913,707) (88,236,697)
Cash flow from financing activities 20,608,182 50,561,242 53,977,915 (389,344,777) (95,254,018)
Increase (decrease) in cash and cash equivalents 7,445,192 4,924,287 3,350,274 (333,796,328) 23,388,918
Impact of exchange rate differences on cash and cash equivalents 299,920 (185,750) 3,113 64,964 126,307
Cash and cash equivalents at the beginning of the period 49,706,998 21,759,631 11,857,584 171,059,127 28,040,367
Cash and cash equivalents at the end of the period 57,456,963 26,498,168 15,229,849 (162,672,237) 51,555,592
December 2019 Peru Colombia Argentina Brazil
Cash flow from operating activities 336,864,163 (102,914,131) 76,232,011 (5,026,695)
Cash flow from investing activities (173,984,433) (13,231,340) (3,152,035) (11,724,430)
Cash flow from financing activities (152,418,315) 148,956,227 (67,488,599) 17,751,618
Increase (decrease) in cash and cash equivalents 10,461,415 32,810,756 5,591,377 1,000,493
Impact of exchange rate differences on cash and cash equivalents 11,020,148 7,229,529 (1,098,721) 141,318
Cash and cash equivalents at the beginning of the period 145,502,008 45,133,440 3,634,593 2,754,970
Cash and cash equivalents at the end of the period 166,983,570 85,173,725 8,127,249 3,896,781
December 2018 Peru Colombia Argentina Brazil
Cash flow from operating activities 162,183,460 27,066,125 (17,496,072) (22,058,521)
Cash flow from investing activities (70,868,951) (3,748,533) (9,593,567) (11,655,333)
Cash flow from financing activities (109,371,534) (15,997,522) 26,952,709 34,274,0680 0 0 0
Increase (decrease) in cash and cash equivalents (18,057,025) 7,320,070 (136,930) 560,214
Impact of exchange rate differences on cash and cash equivalents 11,697,613 (2,074,108) (1,181,008) (149,611)0 0 0 0
Cash and cash equivalents at the beginning of the period 151,861,440 39,887,477 4,952,531 2,339,4580 0 0 0
Cash and cash equivalents at the end of the period 145,502,028 45,133,439 3,634,593 2,754,969
Fourth Quarter 2019 Results
29
Definitions for the Financial Business Units
Fourth Quarter 2019 Results
30