CORPORATEPRESENTATION
March 2017
InRetail Overview
Multi-format retailer with exclusive focus in Peru
Leading positions in its 3 segments
#1 supermarket chain
#1 pharmacy chain
#1 shopping center operator
Controlled by Intercorp Peru, one of Peru’s largest
business groups
2
InRetail is part of one of Peru’s leading business groups
Education
77.6%100.0%
Float1/ 28.8%
BVL: INRETC1
1/ Includes 6.3% of Nexus
3
InRetail at a Glance
Sales area / GLA
# Employees
# Stores / S.Centers
N/A
11,107
1,107
625,636 sqm
312
304,293 sqm
15,130
165
Supermarkets Pharmacies Shopping Malls
Adjusted EBITDA 72 8582
Revenues 777 1361,256 2,155
235
2016
(US$ millions)
57.9% 35.8% 6.3%
34.4% 30.0% 35.6%
% of Revenues
% of Adj. EBITDA
19
6.5% 9.2% 82.1%Adj. EBITDA Margin1/10.9%
Note: FX of 3.38 (average 2016)1/ For Shopping Malls is calculated over the Net Rental Income
4
KEY INVESTMENT HIGHLIGHTS
SIGNIFICANT UPSIDE POTENTIAL
1 2 3 4MARKET LEADERSHIPWITH CLEAR STRATEGY
STRONG FINANCIAL RESULTS
CAPEX2017 - 2019
5
SIGNIFICANT
UPSIDE POTENTIAL
1
6
Fastest growing economy boosts emerging middle class
Real GDP Growth Population by Socio-Economic Category(2009-2015 CAGR)
1/ Average Real GDP growth of Colombia, Brazil, Chile, MexicoSource: IMF – World Economic Outlook
3.2%
Perú
5.4%
Latin America 1/
~1.7x
GDP per Capita
6.06.1
8.79.0
13.313.6
Source: IMF – World Economic Outlook Estimates
(2015, US$ 000)
PeruColombiaBrazilChile MexicoArgentina
Average: US$8.3
Source: APOYO Consultoría 2016
SEC
% of total population
Annual Income
2005 2015
+28.1p.p.
-28.1 p.p.
54.7%
25.9%
18.3%
34.2%$ 8,608
$ 4,720
D
E
5.1%
14.3%
15.4%
32.1%$ 13,862C
$ 46,299A
$ 23,523B
7
Significant upside potential for modern retail
Supermarkets Pharmacies Shopping Malls
5.0
4.3
3.7
2.6
2.39788
69
50
208
Source: Euromonitor, 2016
Sales of Retail Pharma per capita US$ - 2015
Source: Accep 2016
Malls per million people - 2015Penetration as a % of Total Sales - 2015
Source: Business Monitor, 2015
ChileBrazilPeru Colombia
Mean ex-Peru: 3.9
~1.7x
Colombia ChileBrazilPeru Mexico
Mean ex-Peru: 115.4
~2.6x
53%
26%
58% 59%
40%
Colombia BrazilPeru ChileMexico
Mean ex-Peru: 52.5%
~2.0x
Sales area per capita:Peru 0.24 sqm vs Chile
0.67sqm
8
Ecuador
Opening Peaking Maturing Closing
9
Peru: Rising Retailing Market in Peaking Stage
Global Retail Development Index Opportunities
Peru (2002)
Chile (1998) Mexico (2003)Brazil (2005)
Peru (2015)Brazil (2013)
Mexico (2009)
Mexico (2016)
Chile (2016)
Growing middle class
Consumers willing to explore organized formats
Consumers seek organized formats and global brands
Real estate affordable and available
Consumer spending has expanded
Sophisticated local competition
Real estate difficult to secure
Consumers used to modern retail
Higher discretionary spending
High competition
Real Estate expensive and not readily available
2016 Ranking
1. China6. Turkey9. Peru
15. Colombia20. Brazil25. Paraguay
Peru top-ranked LatAm country in the GRDI
Retail is gaining force, mainly in some of Lima’semerging neighborhoods and in secondarycities
Consumer confidence is the highest in LatAm
Increasing development of malls with space fornew players.
Strong interest from fast-fashions
Peru:
Source: ATKearney – The 2016 Global Retail Development Index TM
MARKET
LEADERSHIPWITH CLEAR STRATEGY
2
10
Supermarkets Pharmacies
First mover in 17 out of the 23 cities outside of
Lima
Total sales area (m2): 304,293
62% of stores are owned1/
(7)
(1)
(5)
(3)
(74)
(3)
(2)
(1)(1)
(2)
(2)
(2)
(2)
(1)(1)
(59)
106 Spmkts
59 Mass
Present in all of Peru’s 24 departments
100% of stores are rented
43% in Lima / 57% in Provinces
Largest nationwide footprint of premier retail locations
Note: As of December 20161/ Owned by Supermercados Peruanos or through a related party
Shopping Malls
First mover in 6 out of the 12 cities
Total GLA (m2): 625,636
Piura (2)
Chiclayo
Trujillo
Arequipa
Juliaca
Chimbote
Lima (8)
Cajamarca
Cusco
Huánuco
Huancayo
Only modern shopping mall
19 Malls
11
(9)
(6)(34)
(22)
(20)
(24)(15)
(8)(19)(39)
(37)
(5)
(8)
(60)
(29)
(45)
(17)
(49)
(473)
(74)
(51)
(3)
(3)
(57)
1,107 Stores
Openings and SSS by Segment
Same Store Sales (SSS)Openings
304 290 270 249 225
2012 2016201520142013
SupermarketsSales Area (‘000 sqm)
No Mass 4 2 2 19
PharmaciesNo Stores
Shopping MallsGLA (‘000 sqm)
No Malls 13 15 17
Supermarkets
2016
1.2%
Q4’16
1.0%
Q3’16
0.0%
Q2’16
0.6%
Q1’16
3.4%
2015
3.7%
2014
4.4%
2013
0.4%
2012
3.2%
Pharmacies
18
12
1,107 921 837 725
580
201420132012 20162015
582 553 399
286
626
20162015201420132012
2016
5.9%
Q4’16
2.7%
Q3’16
7.2%
Q2’16
5.1%
Q1’16
9.0%
2015
5.1%
2014
8.5%
2013
2.7%
2012
13.6%
No Spmkts 82 96 99 104
Shopping Malls
Q1’162015
8.2%
Q4’16
2.4%
9.9%
2013
5.2%
Q2’16 Q3’16
6.3%4.4%
2012
4.7%2.6%
2014
5.2%
2016
19
59
106
Note/ Shopping Malls’ SSS include anchor stores
Supermarkets Segment
Formats
One stop shop: food and non-food products, and
entertainment to differentiate from traditional markets
Attractive price positioning through “Every Day Low
Price” strategy
Fastest growing chain with largest presence across
Peru
Compact sized formats provide flexibility to grow
Secured access to landbank and Real Estate team to
sustain growth
Launched e-commerce platforms for Plaza Vea and
Vivanda brands
Ranked 12th among the most valuable brands in Peru
(Brandz)
Sales arearange (m2)
# of StoresTotal / Provinces
BrandRevenues
2016 S/4,241 mm
2,000 – 5,000
500 – 2,000
900 – 1,200
68 / 28
29 / 6
9 / 0
Supermarkets13%
High-end6%
Compact Hypermarkets
81%
Figures as of December 2016
13
14
Piloting New Discount Model
• Piloting a low CAPEX, low cost, every day low price
format to capture untapped demand and penetrate
traditional trade
• 59 stores between 100 and 300 sqm in Lima
• Testing value proposition (assortment, price,
store size, etc.)
• Ensuring cost structure through store productivity
and efficient supply chain
Pharmacies Segment
Pharmaceutical Retail Market
# of Stores
Annual sales per store
PlayerModern MarketS/4.9bn
S/2.1mm
~ S/0.3mm
~ S/1.7mm
1,107
~7,000
~ 1,500Other
chains
Mom & Pops
52%
48%
Total MarketS/7.2bn
34%
33%
33%
Sustainable “Every Day Low Price” strategy…
High market-share
Strong bargaining power with suppliers
High penetration of profitable private labels
Operational efficiencies
…with fast store growth
Small, standardized formats (~120 sqm)
Limited Capex of US$60,000 per store
100% leased stores with proven renewal track record
Ranked 11th among the most valuable brands in Peru
(Brandz)
Note: Figures as of December 2016Source: IMS - Since Sept 2016, calculation methodology changed since some independent pharmacies were included in the modern channel.
AssistedSales Model
15
Shopping Malls Segment
Shopping Malls Sales
7,087
2,034 2,150
4,570 5,159
1,953
Other 1/
Source: ACCEP 2016
Falabella includes Open Plaza and 60% of Mall Aventura Plaza
Parque Arauco includes its malls and 50% of Mega Plaza
1/ 6 additional malls, 40% of Aventura Mall and 50% of Mega Plaza
Sales (S/ millions) 2015
Occupancy Rates
2013
93%
2012
92%
2011
94%
2015
97%
2014
94%
2016
97%
16
Nationwide premium portfolio of 19 locations
626k sqm of GLA, an expansion of 13% over the
last 24 months
Preferred partner for local and international
tenants:
High tenant renewal rates and low concentration
of renewal per year
High occupancy levels despite recent important
additions in GLA
Secured access to landbank to sustain growth
Ranked 4th among most valuable brands in Peru
(Brandz)
STRONG FINANCIAL
RESULTS3
17
Consolidated Financial ResultsMillion Soles (S/ mm)
Highlights Revenues
High single digit growth in Adj. EBITDA and Revenues and+85.5% in Net Income
Gross Margin: +74 bps in 2016
EBITDA Margin: +25 bps in 2016
Net Margin: +156 bps in 2016
Adj. EBITDA Net Income
7,2736,798
1,9681,868
+7.0%
5.4%
20162015Q4’16Q4’15
268
144
9199
-7.6%
+85.5%
20162015Q4’16Q4’15
793724
232219
6.2%
20162015Q4’16Q4’15
+9.5%
Margin 11.7% 11.8% Margin10.7% 5.3 % 4.6% 2.1%
18
10.9% 3.7%
Gross
Margin30.8% 30.2% 31.0%31.8%
Financial Results by FormatMillion Soles (S/ mm)
6.8%
+12.1%
2016
515
53%
47%
2015
459
56%
44%
Q4’16
158
62%
38%
Q4’15
148
64%
36%
5.3%
2016
6,853
62%
38%
2015
6,406
64%
36%
Q4’16
1,852
64%
36%
Q4’15
1,759
65%
35%
+7.0%
Margin:
Net Rental Margin:
80.7% 80.1%
458435
125118
2015Q4’16Q4’15
+5.2%
5.8%
2016
286272
7573
+5.3%
2.7%
20162015Q4’16Q4’15
Spmkts
Pharmacies
Revenues Adj. EBITDA
82.8%
8.4% 8.5% 7.2% 7.5%
19
Gross Margin
28.7% 28.0% 28.8%29.7%
Gross Margin
68.1% 69.1% 68.8%67.0% 82.1%
InRetail Consumer - Financial ResultsMillion Soles (S/ mm)
Supermarkets
Revenues Adj. EBITDA
Pharmacies
4,2414,077
1,1791,149
2015Q4’16Q4’15
+4.0%
2.7%
2016
20
277259
9896
+7.1%
2.3%
20162015Q4’16Q4’15
2,6242,339
676613
+12.2%
Q4’15
10.3%
20162015Q4’16
241
202
6153
15.9%
20162015Q4’16Q4’15
+19.2%
Margin: 8.3% 8.3% 6.3% 6.5%Gross
Margin27.2% 26.1% 26.7%27.7%
Margin: 8.6% 9.1% 8.7% 9.2%Gross
Margin31.7% 31.7% 32.7%33.6%
Consolidated Net IncomeMillion Soles (S/ mm)
21
Net Income
Net Income excluding FX and mark-to-market:
268
144
9199
+85.5%
-7.6%
20162015Q4’16Q4’15
Net Margin 5.3%
Net Margin
2.1%
252240
83113
+5.2%
-26.1%
20162015Q4’16Q4’15
4.6% 3.7%
5.0% 3.5%4.2% 3.5%
Net Income Breakdown
69
181102
268
1442
Lower FX Effect
Lower Mark to Market
22
Higher Financial Expenses
EBITDA Growth
Net Income 2015
Net Income 2016
Other
21
Net income Q4’16: -26.1%
• S/54 mm of tax expenses in 2016 vs S/ 4 mm in 2015,
due to a one-time reversion in 2015 of S/ 24 million of
deferred tax due to changes in Shopping Malls’
accounting treatment
Net income 2016: +5.2%
• +9.5% Adj. EBITDA
• +1.1% in financial expenses, net
• +134.9% in tax expenses, due to a one-time reversion
in 2015 of S/ 24 mm of deferred tax in Shopping Malls
Consolidated Capex and Free Cash FlowMillion Soles (S/ mm)
22
CAPEX Cash-Flow Breakdown
Free Cash Flow 2016: S/361 mm
195
87
161
79
197
105
134
74
Q4’16Q3’16Q2’16Q1’16Q4’15Q3’15Q2’15Q1’15
244
884
235
Ending Cash
Balance 2016
Other Non-Operating Investing Activities
-171
Financial Expenses
-175
Debt Decrease
-7
CAPEX
-523
Operating Cash Flow
Ending Cash
Balance 2015
2015: S/510 mm 2016 : S/523 mm
Consolidated Financial DebtMillion Soles (S/ mm)
Consolidated Financial Debt
23
USD Exposure
28%38% 35%
72%
23%23%
39% 42%
dic-16dic-15dic-14
PENUSDHedge
Debt
Cash
Net Debt
1,668
1,125
542
1,722
324
1,398
2,446
285
2,160
3.3x3.5x3.5x3.6x3.6x
4.0x
3.6x
4.0x
3.2x
3.6x
2.9x
1.3x
2.8x2.9x
3.2x3.2x
2016LTM Q3’16
LTM Q2’16
LTM Q1’16
2015201420132012
Debt/EBITDANet Debt/EBITDA
2,670
325
2,344
1/ Since 2015, ratios are adjusted for positive hedge effect
• -S/ 11 mm debt in 2016 vs 2015, explained by:
• -S/ 7 mm from debt repayment• -S/ 24 mm from PEN appreciation • +S/ 7 mm from new Call Spread financing• +S/ 13 mm from 2021 bond structuring costs
2,694
265
2,429
2,671
262
2,409
2,792
435
2,357
2,659
432
2,227
Debt by SegmentMillion Soles (S/ mm)
24
Total Consolidated Debt: S/.2,659 mm
Debt / EBITDA: 3.3xNet Debt / EBITDA: 2.8x
Debt
Cash
Net Debt
976
306
670
1,095
215
880
1,347
168
1,179
691
656
35
624
81
543
1,111
124
987
2.7x
3.0x2.9x3.0x3.1x3.2x
3.0x2.9x
2.6x
2.8x
2.4x
2.0x
2.2x2.4x
2.6x2.7x
2016LTM
Q3’16
LTM
Q2’16
LTM
Q1’16
2015201420132012
Debt/EBITDANet Debt/EBITDA
4.3x4.3x4.4x4.5x4.4x
5.5x5.4x
8.2x
4.0x
4.9x
4.7x
0.4x
3.7x4.0x4.1x3.7x
2016LTM
Q3’16
LTM
Q2’16
LTM
Q1’16
2015201420132012
1,422
202
1,220
1,248
128
1,120
1,427
150
1,276
1,267
119
1,148
1/ Since 2015, ratios are adjusted for positive hedge effect
1,420
138
1,282
1,251
130
1,121
1,519
273
1,245
1,273
168
1,245
1,402
277
1,125
1,257
162
1,095
25
USD Debt Exposure and Debt Maturity by SegmentMillion Soles (S/ mm)
19% 20% 21%
81%
26% 25%
55% 53%
dic-14 dic-16dic-15
36%
55%47%
64% 21%22%
24% 31%
dic-15dic-14 dic-16
USD Exposure Debt Maturity
PENUSDHedge
PENUSDHedge
144 127
204
7768
62
53
51
66
2018 20192017
913
2021+2020
118
266
220195
861
Interests Debt Maturity
44 45 46
88 85 82
80
17
207
2020
1,105
20192017 2018
97
1,311
130 127132
2021+
Debt MaturityInterests
CAPEX
2017 - 2019
4
26
27
CAPEX 2017 - 2019
2017 Key Investments Projected CAPEX of S/2 B for 2017-2019
Supermarkets
Pharmacies
Shopping Malls
Opening of 8.5k sqm of sales area(+2.8% growth in 2017)
Initiated construction of new Distribution Center to be operational in 1H 2018
+100 new pharmacies(+9.0% growth in 2017)
Start construction of Puruchuco mall (120k sqm of GLA) to open in 2H 2018
By Type of Investment
Supermarkets40%
Pharmacies13%
Shopping Malls47%
New stores, malls and landbank
70%
Refurbishing and expansions
12%
Maintenance7%
Logistics, IT, other12%
Appendix5
28
29
Composition of Stores by Age
Pharmacies
Supermarkets
73% 72% 72% 70% 72% 72% 72% 75% 78% 77% 78%
7% 8% 10% 9% 10%10% 9% 11% 14%10% 10% 10% 10% 9% 12% 14% 8% 9%
9% 12% 14% 11% 10% 7%
83%
8%7%
Q1’16 Q4’16
6%3%
Q3’16
4%5%
Q2’16
5%5%
Q4’15
6%
Q3’15
4%
Q2’15Q1’15Q4’14Q3’14
4%
Q2’14
6%
Q1’14
Mature2-3 years1-2 years0-1 years
52% 52% 51% 49% 49% 51% 54% 59% 62% 64% 65% 62%
8% 11% 18% 21% 20% 20% 16% 14% 13% 12%11%24% 24% 23% 18% 15% 15% 14% 13% 13% 12% 11%
18% 17% 15% 15% 15% 14% 12% 11% 11% 10% 12% 18%
9%
Q2’15 Q4’16Q3’16Q2’16Q1’16Q4’15Q3’15Q1’15Q4’14Q3’14Q2’14Q1’14
6%
Mature2-3 years1-2 years0-1 years
30
Cash Cycle
Pharmacies
Supermarkets
1
1132323244
-43
-29-30-30-39
-31-36
-31-35-32-39-38
60
100
80
0
-20
-40
-60Q4’16
53
99
3
Q3’16
60
90
Q2’16
57
88
59
92
Q2’15
54
93
Q1’15
59
93
Q4’14
52
90
Q3’14
59
93 93
56
99
Q1’14
52
94
Q3’15
52
Q4’15
93
61
Q1’16Q2’14
CycleInventory TurnoverDays Acc PayablesDays Acc Receivables
44
434333344
3
-26-24
-24-25-27-30-32-27-19-17-18
-10
140
120
100
80
0
-20
-40
Q2’16
83
111
Q1’16
112
Q4’15
88
120
Q3’15
84
Q4’16
9583
116
Q2’15
78
112
Q1’15
81
112
Q4’14
82
104
125
87
107
Q2’14
103
126
Q3’14
103
116
Q3’16
88
116
Q1’14
Inventory Turnover CycleDays Acc PayablesDays Acc Receivables
This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities. Any offering of securities
will be made solely by means of an offering memorandum, which will contain detailed information about the company and its business and financial results, as well as its financial statements.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended.
This presentation includes forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current beliefs and
expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and assumptions, including, among other
things, general economic, political and business conditions, both in Peru and in Latin America as a whole. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are
intended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new information, future events or other factors.
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