santander conference acapulco - · pdf file(expenses/gross margin) 4,6% 6,4% 4,2% 4,5%...

JAN 08

SantanderConference

Acapulco

ConsolidatedSummary

FALABELLA SNAPSHOT

Key information and indicators (Dec-07)• Operations in Chile, Perú, Argentina and Colombia• 63 Department Sores, 84 Homecenters, 29 Super/Hypermarkets• 1,208,824 m2 Selling space• 4.7 million active credit card accounts CMR• 53,000 employees Falabella

(1) Real Ch$ @ Sep30, 2007, converted @ year-end exhange rate 496.89 Ch$/US$(2) Stock Price 31/Dec/2007: Falabella Ch$ 2,420, D&S Ch$ 260.02

Chile based integrated retailer involved in the department store business, home improvement, supermarket and financial services.

Financials LTM Sep07USD MM$ (1) Falabella G Y|YRevenues 5.528 17,0%EBITDA 726 24,1%Net Income 429 10,6%Market Cap.(2) 11.642

HISTORY OF FALABELLA

100% of The Home Depot Chile is purchased

Salvatore Falabella opens the first large tailor shop in Chile

Incorporation of home products. Falabella becomes a department store.

Alberto Solari joins the Company.

Falabella creates CMR, its own credit card

Falabella initiates development of shopping centers with the opening of Mall Plaza Vespucio

First opening in Argentina, city of Mendoza.

Falabella entersPerú by acquiringdepartment store Saga Falabella IPO in the

Chilean stock exchange

Creation of Travel Agency and Insurance brokerage.

Joint venture agreement with The Home Depot

Falabella Bank is created.

Alliances with ENTEL and Copec are created for the use of CMR card.

Falabella merger with Sodimac

Falabella acquires supermarket chain San Francisco in Chile

First department store in Buenos Aires is opened .

20% of FASA drugstore is purchased

Falabella enters the Colombian market:-Increases stake in Sodimac.-Launches CMR credit card.

1889

1937

1958

1980

1990

1993

1995

1996

19971998

1999

2000 2001

20022003

2004

2005Entrance to the Hypermarket industry in Peru with its first Tottus

2006

-Falabella initiates US$MM 2,500 investment plan 2008-2011

-Mall Plaza initiates Peru operations

-Sodimac announces entrance to Argentina

2007 Announcement of Falabella –D&S merger agreement

ChileFalabellaStores 39Sales Area 206,710 M2

ArgentinaFalabellaStores 7Sales Area 42,295 M2

PerúSaga FalabellaStores 14Sales Area 80.189 M2

ColombiaFalabellaStores 3Sales Area 29,268 M2

ChileSodimac + ImperialStores 55+7Sales Area 489,414 M2

PerúSodimacStores 7Sales Area 54,073 M2

ColombiaSodimacStores 15Sales Area 159,446 M2

(49% ownership)

CMR Credit CardN° of Active AccountsChile 2.7 mmArgentina 565 mPerú > 1 mmColombia 308 m

Mall PlazaChile: 8 mallsLease Ar. +590,093 M2

Perú: 1 mallLease Ar. 78,255 M2

Sociedad de Rentas54 storesLease Ar. 359.000 M2

ChileSan Fco - TottusStores 21 Sales Area 85,810 M2

PerúTottus Stores 8Sales Area 61,619 M2

BankROE 2006 34,6%Market ShareCons.Credit 5,2%N° Sav.Acc. 575.000

Travel AgencyBranches +34N°Pass. 200.000/year

Insurance BrokerageN°Accounts +4MM Other

IndustrialMavesa 100% own.Italmod 50% own.

FASA 20% own.

CORPORATE STRUCTURE AS OF DECEMBER 2007

Real EstateReal Estate

MAIN EVENTS 2007

ANNOUNCEMENT OF FALABELLA – D&S MERGER AGREEMENT

OPENING OF 32 STORES DURING 2007. (16 IN 4Q07)

ACQUISITION OF CONTROLLING STAKE IN MALL PLAZA

MALL PLAZA BEGINS INTERNATIONAL EXPANSION THROUGH THE CONSTRUCTION OF FIRST MALL IN PERU

ACQUISITION OF 60% OF INVERSIONES IMPERIAL (7 STORES)

BANCO FALABELLA INAUGURATED IN PERU

CAPITAL INCREASE FOR STOCK OPTIONS

NYSE LISTING PROCESS

OTHER RECENT EVENTS

MMUS$ 1.600 INVESMENT PLAN FOR 2008-2011 (+ MMUS$ 900 IN MALL PLAZA)

CONSOLIDATED INCOME STATEMENT 9M 2007 (MMUS$)

9M 2007 % Revenues 9M 2006 % Revenues Var. 07/06

Revenues 4.000 3.415 17,1%COGS (less) (2.821) -70,5% (2.439) -71,4% 15,7%GROSS MARGIN 1.179 29,5% 976 28,6% 20,8%SG&A (less) (760) -19,0% (651) -19,1% 16,8%OPERATING INCOME 419 10,5% 325 9,5% 29,0%Depreciation + Amortization (less) (90) -2,2% (73) -2,1% 22,6%EBITDA 509 12,7% 398 11,7% 27,8%

NON - OPERATING INCOME (66) -1,6% (19) -0,6% 246,4%

PROFIT BEFORE TAX & EXT. ITEMS 353 8,8% 306 9,0% 15,6%INCOME TAX (63) (45) 39,3%MINORITY INTEREST (22) (4) 481,8%PROFIT (LOSS) bef amort of NG 268 257 4,4%NET PROFIT (LOSS) 268 6,7% 257 7,5% 4,4%

Adjusted EBITDA 552 13,8% 463 13,6% 19,3%

4.000

3.4153.495

2.3701.912

4.145

4.684

2002 2003 2004 2005 2006 9M06 9M07

REVENUES (MMUS$)

CAGR = 23%

Var07/06= 17%

(*) Real Ch$ @ Sep 30, 2007, converted @ exchange rate 511.23 Ch$/US$

NET INCOME MMUS$ & % REVENUES

(*) Real Ch$ @ Sep 30, 2007, converted @ exchange rate 511.23 Ch$/US$

268257

273

219

157

338

405

8,2%

9,3%

7,8%8,2%

8,7%7,5%

6,7%

2002 2003 2004 2005 2006 9M06 9M07

Total 9M 07= MMUS$419

OPERATING INCOME 9M 2007

9M 07

Argentina; 1,0%

Peru; 15,9%

Chile; 83,1%

15,8%14,7%14,1%

11,3%13,0%

13,9% 13,4%

2002 2003 2004 2005 2006 9M06 9M07

Ebitda (MMUS$)* & % Revenues

509

398

423

323281

531 545

14,7%13,6%

12,1%12,8%

11,6% 11,7%12,7%

2002 2003 2004 2005 2006 9M06 9M07

CONSOLIDATED INDICATORS

Liabilities /Equity

1,31

1,06

0,91

1,05

0,98 1,01

2002 2003 2004 2005 2006 9M07

ROE: Net Inc./Equity (%)

FALABELLA STOCK EVOLUTION

Market Cap.

Stock Price (Ch$)

*Converted at each period’s year-end exchange rate

CAGR: 23.3%

1,0481,350 1,410

1,870

2,420

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

US$MM 4,214US$MM 5,783

US$MM 6,574US$MM 8,393

US$MM 11,642

BUSINESS UNITS

0

196

321

1,321

47

237

390

1,412

Colombia

Argentina

Perú

Chile

LTM Sep06 LTM Sep07

FALABELLA Department Stores · Revenues (MMUS$)

Var: 6.9%

Var: 21.4%

Var: 20.5%

• New stores 2007: 4

• Total stores: 39 (206,710 M2)

• Openings 2008: 3

• Openings 2008-2011: 14

FALABELLA · Department Stores*

Chile International


• Total stores: 24 (151,752 M2)• 14 Peru, 7 Argentina, 3 Colombia


• Openings 2008-2011: 23

(*) Projected information subject to changes

64

334

1,527

102

478

1,776

Perú

Colombia

Chile

LTM Sep06 LTM Sep07

SODIMAC Home Improvement · Revenues (MMUS$)

Var: 16.3%

Var: 43.3%

Var: 58.7%

SODIMAC · Home Improvement*


• Addition of 7 Imperial Stores

• Total stores: 62 (489,414 M2)


• Openings 2008-2011: 31

Chile International


• Total stores: 22(213,519 M2)• 7 Peru, 15 Colombia


• Openings 2008-2011: 55


157

341

187

462

Perú

Chile

LTM Sep06 LTM Sep07

TOTTUS – SN FCO Supermarkets · Revenues (MMUS$)

Var: 35.4%

Var: 19.0%

TOTTUS – SAN FRANCISCO · Supermarkets*


• Total stores: 21 (85,810 M2)

Chile Peru• New stores 2007: 4

• Total stores : 8 (61,619 M2)


• Openings 2008-2011: 31


OTHER RETAIL OPERATING INDICATORS

Same Store Sales (Real %)9M 2007

Department Stores - Chile 3,1%Home Improvement - Chile 6,4%Supermarkets - Chile -0,1%Department Stores - Perú 10,4%Hypermarkets - Peru 1,1%Home Improvement - Peru 10,0%Department Stores - Argentina 9,8%

Sep-07 Sep-06 Sales Area

(m2) Sales Area

(m2)Growth %

Department Stores - Chile 202.500 183.622 10,3%Home Improvement - Chile 484.033 409.421 18,2%Hypermarkets - Chile 80.853 53.369 51,5%Department Stores - Perú 67.781 59.890 13,2%Hypermarkets - Perú 30.335 30.335 0%Home Improvement - Peru 38.757 26.971 43,7%Department Stores - Argentina 39.817 39.817 0%Department Stores - Colombia 18.865 - -Home Improvement - Colombia 143.207 106.535 34,4%

Sales Area Growth (%)

Financial Retail · Indicators

Total Gross Loans (MMUS$)

Total Active Accounts per Country (MM)

2,7422,454

2,046

1,5421,177

877

2002 2003 2004 2005 2006 9M 07

1.8 2.0 2.3 2.6 2.6 2.7

0.60.7

0.80.9 1.0 1.1

0.30.3

0.40.4

0.60.5

0.20.3

2002 2003 2004 2005 2006 9M 07

Chile Peru Argentina Colombia

CMR Chile47%

Banco Falabella Chile

36%

CMR Argentina2%

CMR Perú12%

CMR Colombia3%

Total Gross Loans Composition (Sep07)

49,0%

30,7% 34,3%

19,3%

0%

10%

20%

30%

40%

50%

60%

Financial System

Chile

Falabella Bank

Peru

Falabella Bank

Chile

CMR Chile

Financial Retail · Efficiency

Operating Ratio as of September 2007 (Expenses/Gross Margin)

4,6%

6,4%

4,2%4,5%

FinancialSystem Chile

FalabellaBank Perú

FalabellaBank Chile

CMR Chile

Provision as of September 2007 (%)

MALL PLAZA*

• Existing Malls 2007: 8

• Total Leasing Space: 560,093 M2


• Projects 2008-2011: 7

Chile Peru• New Malls 2007

• Mall Plaza Trujillo

• Total Leasing Space: 78,255 M2


• Projects 2008-2011: 5


Growth PlanGrowth Plan

INVESTMENT PLAN (US$ MM)*

(*) Information subject to changes.Includes Sodimac ColombiaAlso, during 2007, US$MM 140 was invested in the acquisition of additional shares of Mall Plaza and a 60% equity stake in Imperial.

NEXT 4 YEARS: OVER US$MM 1,600 IN STORES PLUS US$MM 900 IN MALLS

Malls

Stores

377442

541418

243

107

361304

183

82

484

845

601

325

804

2007 2008 2009 2010 2011

(*) Information subject to changes.Includes Sodimac Colombia

OVER US$MM 1,600 IN NEXT 4 YEARS

INVESTMENT IN STORES (US$ MM)*

377

442

541

418

243

2007 2008 2009 2010 2011

STORE OPENINGS *

(1) Includes 7 Imperial Stores acquired in May 2007.(*) Information subject to changes.

Includes Sodimac Colombia

147 NET STORE OPENINGS IN NEXT 4 YEARS

Total N°Stores 1761 212 256 294 323

2836

4438

29

2007 2008 2009 2010 2011

141 323

SELLING SPACE*

(*) Information subject to changes.Includes Sodimac Colombia

1,006,000 [M2]

SELLING SPACE X 2 IN NEXT 4 YEARS

2,324,000 [M2]

203261

360284

210

2007 2008 2009 2010 2011

N° of Stores 2011 TOTAL

Falabella 100

Sodimac 178

Tottus 45

TOTAL 323

N° of Stores 2007 TOTAL

Falabella 63

Sodimac 84

Tottus 29

TOTAL 176

STORE SUMMARY · 2007 – 2011**

(*) N° of stores 2011 = N° of stores 2007 + Openings – Closing of stores(**) Information subject to changes.

Includes Sodimac Colombia.(***) Does not include investment plan to be developed with D&S.

*

***

LEADING REGIONAL EXPANSION

CHILEFalabellaSodimacTottusFinancial RetailReal State

PERUFalabellaSodimacTottusFinancial RetailInmobiliario

COLOMBIAFalabellaSodimacFinancial Retail

ARGENTINAFalabellaFinancial RetailSodimac

CONTACT INFORMATION

Juan Guillermo Espinosa ([email protected]) Tomás Gazmuri ([email protected])

Phone: 56-2-380 2007

Fax: 56-2-380 2008

DISCLAIMER

This presentation contains forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and its management. Investors are cautioned that any such forward-looking statements are not guarantee of future performance and involve a number of risks and uncertaintiesincluding, but not limited to, the risks detailed in the company’s financial statements, and the fact that actual results could differ materially from those indicated by such forward-looking statements.

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