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Nueva Polar Corporate Presenta0on ITAU San0ago January 2014
www.nuevapolar.cl
ü Company Overview ü Company Strategy ü Financial Highlights
www.nueva-polar.cl
2
CONTENTS
www.nuevapolar.cl
Our Opera0ons
Colombia
Chile
3
Retail Sales LTM 3Q USD 55M
Employees 836
Stores 6
Total Sqm 28,000
Retail Sales LTM 3Q USD 630 M
Employees 7,136
Stores 40
Total Sqm 160,500
www.nuevapolar.cl 4
La Polar in the Chilean Retail Industry ü Established in 1920, the brand has been
present in the Chilean market for almost a century.
ü Same Store Sales con0nues to grow over 2 digits, increased by 12%.
ü Renewed consumer confidence, as the number of customers buying in our stores in Chile has increased by 16% this year.
ü Brand valued by our customers as we have sucessfully regained the 10% of market share.
Number of stores 3Q-‐2013
2013 2012
Sales per square meter (USD$) – 3Q Retail Market Share – 3Q
Source: Earninngs Report 3Q-‐2013: Falabella, Hites, Cencosud and Ripley
1,945
1,0771,177
855 821
1,975
1,204 1,205
914 910
Falabella Cencosud Ripley Hites La Polar
42
77 41
15 40
Total sqm 270,381 371,891 258,212 92,417 160,500
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Last 4 Quarters: A Turnaround story… ü Same Store Sales (CLP Billion$) ü Retail Gross Margin
ü % Provision for NPLs ü EBITDA Margin LTM
5
83
5767
64
95
6678
72
4Q´11 4Q 1Q 2Q 3Q
2012 2013
+15%
+15%+16%
+12%
2012 con intereses y depreciaciones
20%24%
19% 21%23%28%
23% 25%
1Q 2Q 3Q 9M
2012 2013
www.nuevapolar.cl
ü Company Overview ü Company Strategy ü Financial Highlights
www.nueva-polar.cl
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CONTENTS
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Aconcagua Plan Strategic Goals for 2014
2014 Sep-‐13 LTM
RetailMonthly Retail Sales USD/sqm 450 327Retail Direct Margin % 30% 27%Apparel, Shoes & Accesories % of Retail Sales 55% 56%Private Labels % of Retail Sales 30% 29%
Credit Card BusinessFinancial Revenues % of Retail Sales 30% 21%NPLs Provision/Loans 12% 8,3%Sales with credit card % of Retail Sales 50% 49%
OperatingSG&A % of Retail Sales 30% 36%EBITDA Margin % of Retail Sales 10% 1,1%
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3 Strategic Drivers
SALES GROWTH
2 MARGIN IMPROVEMENT
3 INCREASE CUSTOMER BASE
8
> 10% EBITDA Margin
Sales Growth
Increase Customer Base
Improve Retail Margin
1
2 3
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SALES GROWTH
Maintain sales growth between 10% and 16% (for the next 2-‐3 years)
Increasing the number of customers buying
Boost the Private Label offering
9
> 10% EBITDA Margin
Sales Growth
Increase Customer
Base
Improve Retail Margin
1
Beber Store Layout • Furniture specially designed to load more products • Store remodeling
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> 10% EBITDA Margin
Sales Growth
Increase Customer
Base
Improve Retail Margin
2
Qualified Team • Design • Planning • Purchasing Team
Product Mix • Apparel/Electronics • Private/Third Party Labels • Fashion/Basic Products.
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DEVELOP CREDIT CARD BUSINESS
Experienced team: People who know the Credit Card Business
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> 10% EBITDA Margin
Sales Growth
Increase Customer
Base
Improve Retail Margin
3
Abract New Premium Customers
New Products and Innova0ve Technology
• Cash Advances & Cash Loans • Associated Stores • Visa/Mastercard • Fingerprint payment
9.78011.176 10.737 11.340 11.697
17.715
22.179 21.35517.700
22.913
25.425
35732
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
New Credit Card Holders 2013
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Increase Loans Porholio • Reach CLP 170b by 2013 • and CLP 205b by 2014
Further reducing the NPLs
13
> 10% EBITDA Margin
Sales Growth
Increase Customer
Base
Improve Retail Margin
3
93158
2221
DEC´12 DEC´13
Normal Renegociated
Total Stock$115
Total Stock$178
26,2%22,6%
19,1%16,1%
12,4% 12,9%10,8% 8,3% 7,6%
DEC´11 MAR´12 JUN´12 SEP´12 DEC´12 MAR´13 JUN´13 SEP´13 DEC´13
8%
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ü Company Overview ü Company Strategy ü Financial Highlights
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CONTENTS
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EBITDA 9M 2013
EBITDA Chile
Consolidated EBITDA
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EBITDA Chile in CLP M$ 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012Revenues 221,578 196,834 51,836 43,163 273,414 239,997Gross Margin 54,937 41,827 31,409 (8,082) 86,346 33,745
% Revenues 25% 21% 61% -‐19% 32% 14%
SG&A w/o depreciation (59,551) (56,161) (22,388) (20,155) (81,959) (76,315)% Revenues -‐27% -‐29% -‐43% -‐47% -‐30% -‐32%
EBITDA (4,635) (14,240) 10,831 (23,191) 6,196 (37,431)% Revenues -‐2% -‐7% 21% -‐54% 2% -‐16%
Retail Financial Consolidated
9M Chile Colombia Consolidated EBITDA Consolidated 9M´13 9M´12 Var % 9M´13 9M´12 Var % 9M´13 9M´12 Var %
Revenues (CLP M$) 273,414 239,997 14% 21,470 19,208 12% 294,884 259,205 14%
Gross Margin 32% 14% na 15% -‐4% na 30% 13% na
SG&A w/o depreciation -‐30% -‐32% -‐6% -‐57% -‐45% 27% -‐32% -‐33% -‐3%
EBITDA 2.3% -‐15.6% na -‐40.8% -‐49.3% -‐17% -‐0.9% -‐18.1% na
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Summarized Balance Sheet – September 2013 Figures in Million USD
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Current Assets 494 211 Current LiabilitiesCash & Equivalents 87 57 Short Terms Financial LiabilitiesInventory 125 116 Trade PayablesShort Terms Receivables 224 18 ProvisionsOther 58 20 Other
Non-‐Current Assets 341 485 Non-‐Current LiabilitiesLong Term Receivables 59 347 Long Terms Financial LiabilitiesFixed Assets 144 138 OthersOthers 138
139 EquityTotal
Assets Liabilities
835
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Financial Debt
Interest Payments
Capital Payments
First 5 years net payments are 2-‐4% of the total Income
Debt Profile
* 2013-‐14: 4%, 2015: 6%, 2016-‐22: 10% ** BCP: nominal central bank interest rate: 5,3%
USD Million
June 2013: we repurchased 26% of the Junior debt, at a cash cost of USD 13 Million
17
Annual F in. E xpenses 48 52 54 56 58 58 56 54 48 30 24 28 63
CASH FLOW
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Appendix
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Where do we come from
20
June 2011: La Polar goes into a severe financial crisis
July 2011: New Board of Director takes office
August 2011: New CEO is appointed (Patricio Lecaros)
November 2011: Seblement with creditors is reached
May 2012: Agreement with Chile´s Consumer Protec0on Agency
(SERNAC, Ac0on Class)
October 2012: US$280 mill capital increase
June 2013: We repurchased of 26% of the Junior Bond
Aconcagua Plan
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Corporate Governance: Commibed Board of Directors
Gino Manríquez Controller
Controller
ü Control and transparency
ü Reports directly to the Board
ü Internal Audit
Commibee Audit Risk Retail Colombia Finance Fraud Preven0on
César Barros M.
Georges de Bourguinon A. ü Alberto Marraccini V. ü ü ü Jorge Id S. ü ü ü
Juan Pablo Vega W. ü ü ü Bernardo Fontaine T. ü ü
Aldo Moda C. ü
Georges de Bourguignon A., Vice-‐chairman Alberto Marraccini V. , Director Juan Pablo Vega W., Director Jorge Id S., Director Aldo Moba C., Director Bernardo Fontaine T., Director
César Barros M. Chairman of the Board • Ph.D. and M.A. in Economics at
Stanford University. • Former Chairman of SalmonChile
(2007-‐2011) • Vast experience in Banking and
Financial Industry
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Patricio Lecaros, CEO • Commercial Engineer, PUC • Vast experience in the retail
Industry as Execu0ve and Entrepreneur.
• 14 years in Ripley Chile • 5 years as CEO in Ripley Peru
Retail Financial Support Colombia Apparel Mngr. Andrés Molina Logistics Mngr. Carlos Arredondo Planning Mngr. José Tomás Larraín Sales Mngr. Marcelo Acosta Home and electronics Mngr. Rodrigo Karmy
CFO Álvaro Araya HR Mngr. María Olivia Brito IT Mngr. Ricardo Rubio Marketing Mngr. Rodrigo Nazer
CEO Francisco Martínez
Financial retail Mngr. Vìctor Wipe
22 www.nueva-polar.cl
Experienced Management Team
For all our investors informaeon please visit:
www.nuevapolar.cl
Contact Info:
Felipe Contesse Head of Investor Rela0ons
+56 2 2383 3313 [email protected]
Disclaimer: This presentaeon contains forward-‐looking statements which reflect management's best judgment based on factors currently known but involve significant risks and uncertainees. Actual results could differ materially from these forward-‐looking statements as a result of a number of factors, including but not limited to risks more fully described in our financial statements.
Nueva Polar Corporate Presenta0on ITAU San0ago January 2014