SEP 08

SEP 08
FALABELLA: Snapshot
Chile based integrated retailer involved in the department store business,
home improvement, supermarket, financial services and malls.
Key Information
• Operations in Chile, Peru, Argentina and Colombia.
• 184 stores and 1.3 millions m2 selling space .
• 4.9+ million active credit card accounts CMR .
• 60,000+ employees.
Financial Indicators
Revenues 2007
Ebitda 2007
Net Income 2007
Market Cap. (2)
(1):
MMUS$
MMUS$
MMUS$
MMUS$
5,706 (16% growth)
734 (28% growth)
437
10,649
(1) Real Ch$ 2007, converted @ year-end exchange rate 496.89 Ch$/US$
(2) Stock Price June/2008: Falabella Ch$ 2,213.6 converted @ exchange rate 496.89 Ch$/US$
History of Falabella
• Sodimac enters the Argentinean market
• Consolidation of Mall Plaza Vespucio
• 10 store openings YTD.
FY(e) 37.
Corporate Structure as of Aug-08
1,481
1,953
512
(& CMR)
13
405
119
246
66
518
(1) Revenues 2007, converted @ year-end exchange rate 496.89 Ch$/US$
(2) Gross Loans June/2008, converted @ exchange rate 526.05 Ch$/US$
200
Revenue Mix & Banner Sales
% Revenues 1S’08
Colombia 2,5% Others 1,5%
Peru 16,1%
% Banner Sales 1S’08*
Colombia Others 1,3%
10,7%
Falabella
Chile 21,6%
Falabella
Chile 18,5%
Peru 15,7%
Argentina
5,4%
Argentina
4,6%
Mall Plaza
2,6%
Promotora
CMR Chile
7,7%
Tottus Chile
9,0%
Sodimac Chile
33,6%
Revenues MMUS$ 3,176
Mall Plaza
3,0%
Falabella
Chile Bank Promotora
Tottus Chile
3,1%
CMR Chile
7,7%
6,6%
Sodimac Chile
28,8%
Banner Sales MMUS$ 3,710
(*) Banner sales includes: Falabella Bank Chile, Mall Plaza Vespucio, Falabella Bank Peru and Sodimac Colombia
Corporate Strategy
High operational
efficiency &
synergies
Strong
growth plan
Outstanding
Management
Consumer
Innovation
Corporate
sustainability
Business Strategies
• Fashion & High Tech
positioning
• Development of private
labels and exclusive brands
• High Quality/Price
Relationship
• Positioning of low
interests and benefits
• High operational
efficiency
• Alliances and Services
• CMR database
• Everything for the home,
in one place
• Low prices, with the best
assortment
• Leading edge in
technology and solutions
• Modern and atractive
development of public spaces
• Potential for growth
• Sinergies
• Complete offering of products
and services.
Consolidated Income Statement
(MMUS*$)
% Revenues
1S'07
% Revenues
Var. 08/07
3.176
(2.229)
947
(627)
320
(72)
392
-70,2%
29,8%
-19,7%
10,1%
-2,3%
12,3%
2.719
(1.929)
790
(505)
285
(61)
346
-70,9%
29,1%
-18,6%
10,5%
-2,3%
12,7%
16,8%
15,6%
19,9%
24,2%
12,1%
18,3%
13,2%
NON - OPERATING INCOME
(43)
-1,3%
(7)
-0,2%
535,5%
PROFIT BEFORE TAX & EXT. ITEMS
INCOME TAX
MINORITY INTEREST
PROFIT (LOSS) bef amort of NG
NET PROFIT (LOSS)
277
(48)
(20)
210
210
8,7%
10,2%
6,6%
278
(40)
(15)
223
223
8,2%
-0,5%
18,6%
31,7%
-6,1%
-6,1%
Adjusted EBITDA
427
13,4%
391
14,4%
8,9%
Revenues
COGS (less)
GROSS MARGIN
SG&A (less)
OPERATING INCOME
Depreciation + Amortization (less)
EBITDA
1S'08
Adjusted EBITDA = EBITDA + profit/loss on investment in related companies.
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
Consolidated Income Statement
(MMUS*$)
1S'08
Revenues
3.176
COGS (less)
(2.229)
GROSS MARGIN
947
SG&A (less)
(627)
Financial income
OPERATING
320
ProfitINCOME
on investments in related companies
Depreciation
Amortization
(less)
(72)
Other+non-operating
income
EBITDA Loss on investment in related companies
392
Amortization of goodwill
Financial expenses
NON - OPERATING
INCOME
Other non-operating expenses
Price-level restatement
PROFIT BEFORE TAX & EXT. ITEMS
Exchange differentials
(43)
INCOME TAX
Non-operating Income
MINORITY INTEREST
PROFIT (LOSS) bef amort of NG
NET PROFIT (LOSS)
277
(48)
(20)
210
210
Adjusted EBITDA
427
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
% Revenues
1S'07
-70,2%
29,8%
-19,7%
10
10,1%
34
-2,3%
18
12,3%
0
2.719
(1.929)
790
(505)
6
285
45
(61)
27
346
0
(17)
(17)
(57)
(42)
-1,3%
(7)
(12)
(11)
(17)
(12)
8,7%
278
(3)
(3)
(40)
-43
-1,3%
-7
6,6%
(15)
223
223
13,4%
391
% Revenues
-70,9%
29,1%
-18,6%
10,5%
-2,3%
12,7%
-0,2%
10,2%
-0,2%
Var. 08/07
16,8%
15,6%
19,9%
75% 24,2%
-24% 12,1%
-33% 18,3%
n/a 13,2%
-3%
33%535,5%
13%
44%
-0,5%
2%
18,6%
536%
8,2%
31,7%
-6,1%
-6,1%
14,4%
8,9%
Consolidated Income Statement
(MMUS*$)
Revenues
COGS (less)
GROSS MARGIN
SG&A (less)
OPERATING INCOME
Depreciation + Amortization (less)
EBITDA
2Q 2008 % Revenues 2Q 2007 % Revenues
1.719
(1.180)
539
(358)
181
(38)
219
NON - OPERATING INCOME
Var. 08/07
-68,7%
31,3%
-20,8%
10,5%
-2,2%
12,7%
1.406
(981)
425
(268)
158
(31)
189
-69,8%
30,2%
-19,0%
11,2%
-2,2%
13,4%
22,3%
20,3%
26,7%
33,8%
14,7%
22,4%
16,0%
(22)
-1,3%
(12)
-0,9%
75,8%
PROFIT BEFORE TAX & EXT. ITEMS
INCOME TAX
MINORITY INTEREST
PROFIT (LOSS) bef amort of NG
NET PROFIT (LOSS)
159
(29)
(13)
118
118
9,3%
10,3%
6,8%
145
(21)
(9)
115
115
8,2%
9,6%
35,5%
48,6%
1,9%
1,9%
Adjusted EBITDA
232
13,5%
209
14,8%
11,1%
Adjusted EBITDA = EBITDA + profit/loss on investment in related companies.
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
Solid growth
Ebitda (MMUS$)* & % Revenues
Revenues MMUS$*
5.562
23,0%
13,6%
4.800
12,1%
4.248
16,8%
3.582
2.719
2.429
12,8%
11,6%
12,9%
12,7%
12,3%
21,3%
715
3.176
544
13,2%
559
434
331
2003
2004
2005
2006
2007
1S07
1S08
2003
2004
2005
2006
2007
346
392
1S07
1S08
Net Inc. MMUS$ & % Revenues
9,3%
7,8%
8,2%
17,3%
8,7%
415
8,2%
7,7%
6,6%
426
-6,1%
347
280
225
223
2003
2004
2005
2006
2007
1S07
210
CAGR
1S08
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
Var08/07
Attractive return – low risk
ROE: Net Inc/Equity (%)
14,7%
15,8%
15,8%
13,0%
11,3%
3,9%
2003
2004
2005
2006
2007
1S07
3,3%
1S08
Liabilities /Equity
Financial Debt Structure(Short-Term Debt %)
57,0%
1,39
0,91
2003
1,06
2004
0,98
1,01
2005
2006
2007
1,23
1,28
1S07
1S08
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
2003
42,4%
44,1%
2004
2005
36,7%
38,9%
37,4%
2006
2007
1S07
40,6%
1S08
Generating value for shareholders
FALABELLA STOCK EVOLUTION
MMUS$ 10,996
2,420
CAGR: 32,6%
MMUS$ 8,492
Market Cap.*
MMUS$ 6,405
Stock Price (Ch$)
Jun-08
1,870
MMUS$ 10,059
MMUS$ 6,124
MMUS$ 4,757
1,349
1,410
2,214
1,048
MMUS$ 2,064
MMUS$ 2,023
540
551
Dic-01
Dic-02
Dic-03
(*) Converted at exchange rate 526.05 Ch$/US$
Dic-04
Dic-05
Dic-06
Dic-07
Business Units
Falabella Department Stores
Revenues 1S’08 (MMUS$)
1.029
1.142
Total
688
685
Chile
198
242
Perú
1S07
1S08
119
158
Argentina
Colombia
Var 08/07 %
24
57
11,0%
7
-2,9%
3
22,2%
8,5%
2
32,8%
8,8%
1
Inventory Control
Revenue Management
Additional fashion windows
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
2008 Store
Openings
-0,4%
136,8%
•
•
•
SSS
1S08
1
Sodimac
Revenues 1S’08 (MMUS$)
1.241
Total
1.487
944
Chile
Perú
1.068
53
102
SSS
1S08
19,8%
244
317
13,1%
4,6%
5
91,3%
8,3%
5
4
29,9%
•
•
•
Loyalty programs
Logistics and DCs
Additional revenue sources
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
2008 Store
Openings
18
1S07
1S08
Argentina
Colombia
Var 08/07 %
1,3%
4
Tottus – San Francisco
Revenues 1S’08 (MMUS$)
325
Total
438
231
Chile
Perú
Var 08/07 %
SSS
1S08
34,8%
2008 Store
Openings
12
24,0%
4,3%
3
61,0%
3,6%
9
286
1S07
1S08
94
152
•
•
•
•
Strong growth
Non-food advantage
Quality in perishables
Operational efficiencies
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
Financial Retail
Total Gross Loans MMUS$*
CAGR = 29%
2.954
3.000
2.661
2.500
Total Active Accounts (mm)
3.119
4,8
408
3,9
2.250
2.000
3,4
1.106
1.777
CMR Colombia
1.401
1.500
CMR Argentina
1.083
1.000
CAGR = 12%
111
84
Banco Falabella Perú (
649
1.410
0,3
0,6
3,0
0,3
0,4
4,3
0,3
0,4
0,2
0,5
0,6
0,7
1,1
1,2
0,9
1,0
2,6
2,6
2,7
2,7
2005
2006
2007
1S08
0,8
0,7
Banco Falabella Chile
CMR Chile
500
2,7
0,4
4,9
1,8
2,0
2002
2003
2,3
0
2001 2002
2003 2004
2005 2006
2007
1S08
Chile
Provisions/Loans CMR Chile
3,8% 4,0%
4,3% 4,5%
3,1% 3,1% 3,3%
2,3%
1,9%
2001 2002 2003 2004 2005 2006 2007 1Q08 1S08
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
2004
Perú
Argentina
Colombia
Mall Plaza
Net Income (MMUS$)*
Total Leasing Space (thousands of m²)
100,7
100
CAGR = 16,4%
82,1
80
60
800
700
39,6 42,3
55,0
425
400
300
748
593
500
45,0
40
253
282
346
346
200
20
100
0
0
2001 2002 2003 2004 2005 2006 2007 1S08
•
•
•
701
Peru
600
65,3
47,9
Chile
9 malls in Chile and 1 in Peru
Premium locations
Permanent development of projects
(*) Real Ch$ @ Jun30, 2007, converted at exchange rate 526.05 Ch$/US$
2001 2002 2003 2004 2005 2006 2007 1S08
Investment Plan
Accelerated Store Openings*
Openings
40
48
Total Stores *
44
34
+166
350
341
300
250
+123
200
150
175
100
50
52
25%
0
2001
2002
2003
2004
2005
2006
166 NET STORE OPENINGS IN NEXT 4 YEARS
2007
2008
2009
2010
2011
(1) Includes 7 Imperial Stores acquired in May 2007.
(*) Information subject to changes.
Includes Sodimac Colombia
Sales Area Surface*
Additional Sales
Area
Sales Area (thousand of m²)*
283
380
311
230
+1.204 M m²
2.500
2.401
2.000
+896 M m²
1.500
1.197
1.000
500
0
24%
302
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
SELLING SPACE X 2 IN NEXT 4 YEARS
(1) Includes 7 Imperial Stores acquired in May 2007.
(*) Information subject to changes.
Includes Sodimac Colombia
Leading Regional Expansion
Today
COLOMBIA
• 4 TxD
• 15 HI
• 191.383 m²
2011
PERU
• 22 TxD
• 24 HI
• 39 SM
• 476 M m²
• 5 Mall Plaza
PERU
• 13 TxD
• 8 HI
• 9 SM
• 198.665 m²
• 1 Mall
CHILE
• 51 TxD
• 86 HI
• 40 SM
• 1,246 M m²
• 16 Mall Plaza
CHILE
• 39 TxD
• 63 HI
• 22 SM
• 802.643 m²
• 9 Malls
ARGENTINA
• 9 TxD
• 2 HI
• 75.798 m²
COLOMBIA
• 11 TxD
• 37 HI
• 457 M m²
TOTAL
• 65 TxD
• 88 HI
• 31 SM
• 1.268 M m²
ARGENTINA
• 15 TxD
• 16 HI
• 221 M m²
(*) Information subject to changes.
TOTAL
• 99 TxD
• 163 HI
• 79 SM
• 2,401 M m²
• 21 Malls
Key Takeouts
• Strong organic growth plan
• Consolidation of Chile businesses
• Growth of international operations
• Regional & local leadership
• Operational efficiencies and synergies
• Corporate sustainability
• Corporate governance and management
• New markets under analysis
Contact Information
Juan Guillermo Espinosa
Tomás Gazmuri
Chief Development Officer
Corp. Planning & Development Engineer
([email protected])
([email protected])
Phone: 56-2-380 2007
Phone: 56-2-389 8707
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 uncertainties
including, 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.