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Nueva Polar   Corporate  Presenta0on   ITAU   San0ago   January  2014  


CONTENTS ü Company Overview ü Company Strategy ü Financial Highlights

www.nueva-polar.cl www.nuevapolar.cl

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Our Opera0ons   Colombia   Retail  Sales  LTM  3Q   USD  55M   Employees  

836

Stores  

6

Total Sqm  

28,000

Chile Retail  Sales  LTM  3Q   USD  630  M   Employees  

7,136

Stores  

40

Total Sqm  

160,500

www.nuevapolar.cl

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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  Renewed consumer  confidence,  as  the   number  of  customers  buying  in  our  stores  in   Chile  has  increased  by  16%  this  year.  

ü  Same Store  Sales  con0nues  to  grow  over  2   digits,  increased  by  12%.  

ü  Brand valued  by  our  customers  as  we  have   sucessfully  regained  the  10%  of  market   share.   Retail  Market  Share  –  3Q  

Sales per  square  meter  (USD$)  –  3Q   Number  of  stores  3Q-­‐2013   42 1,945

1,975 41

77 1,077

1,204

1,177

855

Falabella

Total sqm

270,381

Cencosud

371,891

Ripley

2013

Source: Earninngs  Report  3Q-­‐2013:  Falabella,  Hites,  Cencosud  and  Ripley  

914

Hites

258,212

40

15

1,205

92,417

821

910

La Polar

160,500

2012

www.nuevapolar.cl

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Last 4  Quarters:  A  Turnaround  story…   ü  Same  Store  Sales  (CLP  Billion$)  

ü  Retail Gross  Margin  

+15%

95

+16%

+15%

+12% 78

66 83

20%

67

57

4Q´11      4Q

72 64

1Q 2012

ü  % Provision  for  NPLs  

2Q

3Q

23%

1Q

24%

28% 19%

2Q

3Q 2012

2013

23%

21%

25%

9M

2013

2012 c on  intereses  y  depreciaciones

ü  EBITDA Margin  LTM  

www.nuevapolar.cl

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CONTENTS ü Company Overview ü Company Strategy ü Financial Highlights

www.nueva-polar.cl www.nuevapolar.cl

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Aconcagua Plan   Strategic  Goals  for  2014  

2014

Sep-­‐13 LTM  

USD/sqm % % of  Retail  Sales %  of  Retail  Sales

450 30%

327 27%

55% 30%

56% 29%

Credit Card  Business Financial  Revenues NPLs Sales  with  credit  card

% of  Retail  Sales Provision/Loans

30% 12% 50%

21% 8,3% 49%

Operating SG&A EBITDA Margin

% of  Retail  Sales

30% 10%

36% 1,1%

Retail Monthly Retail  Sales Retail  Direct  Margin Apparel,  Shoes  &  Accesories Private  Labels

% of  Retail  Sales

% of  Retail  Sales www.nuevapolar.cl  

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3 Strategic  Drivers  

1 SALES GROWTH  

Sales Growth  

2

MARGIN IMPROVEMENT   >  10%  EBITDA   Margin  

2

3

CUSTOMER B  ASE   Improve    IRNCREASE   etail   Increase   Margin   Customer  Base  

3

www.nuevapolar.cl

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1

SALES GROWTH   Sales   Growth  

> 10%  EBITDA   Margin   Improve   Retail   Margin  

Increase   Customer   Base  

Maintain sales  growth  between  10%  and  16%  (for  the  next  2-­‐3  years)   Increasing  the  number  of  customers  buying   Boost  the  Private  Label  offering   Beber  Store  Layout  

•  Furniture specially  designed  to  load  more  products   •  Store  remodeling   www.nuevapolar.cl  

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Sales Growth  

2 Improve Retail   Margin  

> 10%  EBITDA   Margin   Increase   Customer   Base  

Qualified Team  

•  Design •  Planning   •  Purchasing  Team  

Product Mix  

•  Apparel/Electronics •  Private/Third  Party  Labels   •  Fashion/Basic  Products.  

www.nuevapolar.cl

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DEVELOP CREDIT  CARD  BUSINESS   Sales   Growth  

> 10%  EBITDA   Margin   Improve   Retail   Margin  

Experienced team:  People  who  know  the   Credit  Card  Business  

3 Increase Customer   Base  

35732

25.425

Abract New  Premium  Customers    

21.355

22.179

22.913 17.700

17.715 9.780

Jan

11.176

10.737

Feb

Mar

11.340

Apr

New Credit  Card   Holders  2013

11.697

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

New Products  and  Innova0ve   Technology   •  •  •  • 

Cash Advances  &  Cash  Loans   Associated  Stores   Visa/Mastercard     Fingerprint  payment    

www.nuevapolar.cl

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Sales Growth  

> 10%  EBITDA   Margin   Improve   Retail   Margin  

3 Increase Customer   Base  

Total Stock $115

Total Stock $178

21 22

Increase Loans  Porholio   •  • 

158

93

Reach CLP  170b  by  2013   and  CLP  205b  by  2014  

DEC´12 Normal

DEC´13 Renegociated

Further reducing  the  NPLs     26,2%

DEC´11

22,6%

MAR´12

www.nuevapolar.cl

19,1%

JUN´12

16,1%

SEP´12

12,4%

DEC´12

12,9%

MAR´13

10,8%

JUN´13

8,3%

SEP´13

8%  

7,6%

DEC´13

13


CONTENTS ü Company Overview ü Company Strategy ü Financial Highlights

www.nueva-polar.cl www.nuevapolar.cl

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EBITDA 9M  2013   EBITDA  Chile   Retail 9M  2013 9M  2012 221,578 196,834 54,937 41,827

EBITDA  Chile  in  CLP  M$ Revenues Gross  Margin %  R evenues

           SG&A  w/o  depreciation %  R evenues

EBITDA % R evenues

Financial 9M 2013 9M  2012 51,836 43,163 31,409 (8,082)

Consolidated 9M 2013 9M  2012 273,414 239,997 86,346 33,745

25%

21%

61%

-­‐19%

32%

14%

(59,551)

(56,161)

(22,388)

(20,155)

(81,959)

(76,315)

-­‐27%

-­‐29%

-­‐43%

-­‐47%

-­‐30%

-­‐32%

(4,635)

(14,240)

10,831

(23,191)

6,196

(37,431)

-­‐2%

-­‐7%

21%

-­‐54%

2%

-­‐16%

Consolidated EBITDA   9M       EBITDA    Consolidated  

9M´13

Chile 9M´12  

273,414 239,997   Revenues  (CLP  M$)   Gross  Margin       32%   14%   -­‐32%   SG&A  w/o  depreciation   -­‐30%   EBITDA       2.3%   -­‐15.6%  

Var %  

Colombia 9M´13   9M´12   Var  %  

Consolidated 9M´13   9M´12   Var  %  

14%

21,470

19,208

12%

294,884 259,205  

na

15%

-­‐4%

na

30%

13%

na

-­‐6%

-­‐57%

-­‐45%

27%

-­‐32%

-­‐33%

-­‐3%

na

-­‐40.8%

-­‐49.3%

-­‐17%

-­‐0.9%

-­‐18.1%

na

14%

www.nuevapolar.cl  

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Summarized Balance  Sheet  –  September  2013   Figures  in  Million  USD    

Assets

Liabilities

Current Assets Cash  &  Equivalents Inventory Short  Terms  Receivables Other

494 87 125 224 58

211 57 116 18 20

Current Liabilities Short  Terms  Financial  Liabilities Trade  Payables Provisions Other

Non-­‐Current Assets Long  Term  Receivables Fixed  Assets Others

341 59 144 138

485 347 138

Non-­‐Current Liabilities Long  Terms  Financial  Liabilities Others

139

Equity

Total

835

www.nuevapolar.cl

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Financial Debt  

*    2013-­‐14:  4%,  2015:  6%,  2016-­‐22:  10%   **    BCP:  nominal  central  bank  interest  rate:  5,3%  

Debt Profile  

USD Million  

June 2013:   we   repurchased   26%  of  the   Junior  debt,   at  a  cash   cost  of  USD   13  Million  

Interest Payments  

Capital Payments  

CASH   FLOW  

A nnual F in.  E xpens es

48

52

54

56

58

58

56

First 5  years  net  payments  are  2-­‐4%  of  the  total  Income   www.nuevapolar.cl  

54

48

30

24

28

63 17


Appendix

www.nueva-polar.cl www.nuevapolar.cl

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Where do  we  come  from  

Aconcagua Plan     June  2013:    We  repurchased   of  26%  of  the  Junior  Bond   October  2012:    US$280  mill   capital  increase  

May 2012:    Agreement  with  Chile´s     Consumer  Protec0on  Agency   (SERNAC,  Ac0on  Class)   November  2011:  Seblement     with  creditors  is  reached   August  2011:    New  CEO  is   appointed    (Patricio  Lecaros)   July  2011:    New  Board  of   Director  takes  office   June  2011:    La  Polar  goes  into   a  severe  financial  crisis   www.nuevapolar.cl  

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Corporate Governance:  Commibed  Board  of  Directors   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    

Controller ü  Control  and     transparency   ü  Reports  directly   to  the  Board   ü  Internal  Audit  

•  Ph.D.  and  M.A.  in  Economics    at       Stanford  University.   •  Former  Chairman  of    SalmonChile     (2007-­‐2011)   •  Vast    experience  in  Banking  and     Financial    Industry    

       Commibee  

Audit

Gino Manríquez   Controller  

Risk

Retail

Colombia

Finance

Fraud Preven0on  

César Barros  M.   Georges  de  Bourguinon  A.  

Alberto Marraccini  V.  

ü 

ü 

Jorge Id  S.  

ü 

ü 

ü 

Juan Pablo  Vega  W.  

ü 

ü 

ü 

ü 

Bernardo Fontaine  T.   Aldo  Moda  C.  

ü  ü    ü   

ü   

www.nuevapolar.cl

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Experienced Management  Team  

Retail Apparel Mngr. Andrés Molina

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  

Financial Financial retail Mngr. Vìctor Wipe

Support CFO Álvaro Araya

Logistics Mngr. Carlos Arredondo

HR Mngr. María Olivia Brito

Planning Mngr. José Tomás Larraín

IT Mngr. Ricardo Rubio

Sales Mngr. Marcelo Acosta

Marketing Mngr. Rodrigo Nazer

Colombia CEO Francisco Martínez

Home and electronics Mngr. Rodrigo Karmy

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www.nueva-polar.cl www.nuevapolar.cl


For all  our  investors  informaeon  please  visit:  

www.nuevapolar.cl  

Contact Info:     Felipe  Contesse   Head  of  Investor  Rela0ons   +56  2  2383  3313   ir@lapolar.cl    

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  

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