Falabella S.a. · BCS:FALABELLA
Falabella — Investor Day (October 2022)
91 slides from Falabella's investor day presentation, Oct 12, 2022
Slide 1: Investor day
Investor day. CA ABE! 1A rALCnN cCUun falabellacom SSODIMAC #TOTTUS ©) mallplaza S222, Fpay*
Slide 2: Forward-looking statements
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 a guarantee of future performance and involve a number of risks
Slide 3: Introduction
GASTON BOTTAZZINI CEO INTRODUCTION
Slide 4: Virtuous cycle of omnichannel retail and financial services
Our virtuous cycle results from our omnichannel retail and financial • Sodimac • Banco Falabella services leveraging each other to grow • Mallplaza • Falabella • Sodimac • Banco Falabella 37 million • Sodimac Total Customers 564 • Sodimac Stores & Malls • Banco Falabella • Mallplaza • Falabella • To
Slide 5: Touchpoints of the customer journey
To interact at all touchpoints of the customer journey, we incorporated Falabella.com, Fpay and Home Delivery unit CUSTOMER’S JOURNEY Traffic Intermediation & Retail Payments Financial Services Loyalty Delivery Home Delivery LATAM All products and services under a same umbrella and in a consistent j
Slide 6: Six cross business platforms
To continue accelerating growth we have created six cross business platforms CUSTOMER’S JOURNEY Traffic Intermediation & Retail Payments Financial Services Loyalty Delivery Home Delivery LOYALTY MARKETPLACE OMNICHANNEL BANKING PAYMENTS HOME RETAIL DELIVERY BUSINESS PLATFORMS
Slide 7: Each platform's role and ambition
Each platform plays a key role and has defined a clear ambition to meet their purpose To be the preferred program, LOYALTY fanatizing our clients 17.5 mn Active participants 25% Of point redemptions made digitally To be the preferred Marketplace Sellers in our MARKETPLACE For customers and Sellers i
Slide 8: Physical-digital ecosystem enablers
We have built a physical-digital ecosystem supported by our data, analytics, technology, and people in a sustainable business environment CUSTOMER’S JOURNEY Traffic Intermediation & Retail Payments Financial Services Loyalty Delivery Home Delivery Committed to ESG and a Data & Analytics Technology T
Slide 9: Agenda
1. Marketplace 2. Omnichannel Retail JAIME RAMÍREZ ALEJANDRO ARZE FRANCISCO IRARRÁZAVAL MARKETPLACE HOME IMPROVEMENT DEPARTMENT STORES 4. Digital Banking & 3. Home Delivery Payments FRANCISCO IRARRÁZAVAL JUAN MANUEL MATHEU DEPARTMENT STORES FINANCIAL SERVICES 5. Loyalty 6. Operational Leverage Agend
Slide 10: Marketplace
1 MARKETPLACE JAIME RAMÍREZ MARKETPLACE
Slide 11: Leadership positions in markets with attractive growth
We have leadership positions in markets with MARKETPLACE attractive growth perspectives Expected e-commerce market evolution (US$ billion) 9.1 3.1 2x 18.2 2x 16.1 2.7 3x 6.6 14.2 2.3 11.6 2.0 4.7 1.7 9.2 3.5 3.1 22F 23F 24F 25F 26F 22F 23F 24F 25F 26F 22F 23F 24F 25F 26F 12.0% 18.0% 7.4% 11.4% 3.0%
Slide 12: Ecosystem differentiates our value proposition for customers
And we leverage our ecosystem to further differentiate MARKETPLACE our value proposition for our customers… Broad, competitive and curated Leading loyalty program catalogue of 1P and 3P products in the region Millions of local and international products, Valuable benefits for members, with access to
Slide 13: Value proposition for our sellers
…and for our sellers MARKETPLACE High quality traffic Access to +100 million visits Delivery solutions of loyal customers per month Fulfillment services Optimized paid-traffic strategy Click & Collect Above-average conversion rates Express delivery alternatives Returns at our retailers’ stores and p
Slide 14: Single marketplace consolidating retailer traffic
Having a single marketplace allows us to take advantage MARKETPLACE of the consolidated traffic of our retailers and brands Falabella.com Home improvement consolidates the traffic and products of each of our retailers, thus enhancing its network effects and transforming Marketplace itself into an ev
Slide 15: Microservices-based architecture
We also shifted to a microservices-based architecture, MARKETPLACE which provides us with greater flexibility, scalability and speed… Product Catalog Price Cart Inventory
Slide 16: Single customer identity across platforms
…and introduced one single identity for our customers across MARKETPLACE all platforms enabling a seamless integrated experience 23.5 million identities enrolled in our Customer Shared shopping cart Identity platform (Falabella and Sodimac app) Login Payment methods with Falabella or Shared across F
Slide 17: Plan to attract more sellers
We have a comprehensive plan MARKETPLACE to attract more sellers and drive growth Enhance performance Structured first 90-day plan to increase time-to-first-sale Improve seller support for sellers to focus 20% 40% on growth Continue roll-out of loyalty f.plus program Target to encourage better opera
Slide 18: Falabella.com Chile results after one year
The integration of falabella.com in Chile is delivering strong MARKETPLACE results after one year of operation E-commerce #1 Sellers with +55% Site Traffic 1H22 Sales Growth Aug-22 Chile1 vs Launch 212 Seller NPS +17pp VAS 2.1x Aug-22 vs Revenue Growth YTD Aug-21 Chile Aug-22 vs YTD Aug-213 (1) Sour
Slide 19: Marketplace results in Peru
Leveraging the Chilean experience is delivering promising MARKETPLACE results in Peru Successful technological roll-out Sales growth Leveraged learnings from launch in Chile driven by 3P Technological roll-out in approximately half the One month after the launch, share of 3P Traffic time of Chile re
Slide 20: Upcoming launch in Colombia
We will continue to optimize our launch strategy with our MARKETPLACE upcoming launch in Colombia Starting with stronger 3P base We have +5.000 sellers N° 1 market with sales in Linio player Colombia, and the focus will be on migrating that base to falabella.com and accelerate its growth The combina
Slide 21: Omnichannel retail
2 CHANNEL STRATEGY: ALEJANDRO ARZE HOME IMPROVEMENT PRODUCT STRATEGY: FRANCISCO IRARRÁZAVAL DEPARTMENT STORES OMNICHANNEL RETAIL
Slide 22: Channel strategy
Channel OMNICHANNEL RETAIL Strategy SELECT E-COMMERCE DIGITAL AND MALLS AS REGIONAL STRATEGY PHYSICAL URBAN GROWTH INTEGRATION CENTERS OPPORTUNITIES OF THE SHOPPING EXPERIENCE
Slide 23: Portfolio of leading retail brands
OMNICHANNEL RETAIL We operate a portfolio of leading COLOMBIA and well recognized retail brands with V leadership position in each of it’s markets Retailer’s physical channel strategy MEXICO V Optimize the store footprint Continue leading in core markets and BRAZIL advance Mexico and Brazil expansio
Slide 24: Sodimac Mexico
OMNICHANNEL RETAIL Select Regional Growth Opportunities Sodimac Mexico Monterrey Fragmented and underpenetrated in home improvement categories Focus on PRO segment customers Consolidating our greenfield with 4-6 openings per year focused on our presence in Mexico City, Monterrey and the logistic cor
Slide 25: Sodimac Brazil
OMNICHANNEL RETAIL Select regional growth opportunities Sodimac Brazil Converted Dicico, a specialty store into a broader HI store Profitable operation with a relevant scale and presence in the São Paulo area Continue growing organically with 2-4 openings per year 53 180k US$ 284 million stores in S
Slide 26: First IKEA store in South America
OMNICHANNEL RETAIL Select regional growth opportunities 2023 First of 3 openings in Colombia (Bogotá, Inauguration of the Cali and Medellín) first IKEA store Assesing in South America locations and timeline for entering Peru Exceeded our forecast expectations +12k 3x 2nd store will open in Santiago
Slide 27: Dedicated stores-in-store on falabella.com
OMNICHANNEL RETAIL E-Commerce strategy Our dedicated Stores-in-store Strategic focus for our retailers allow our retailers to showcase their catalogues and benefit from the higher traffic base of falabella.com Focus on core categories as apparel, electronics and beauty #1 Our retailers focus on bein
Slide 28: Digital and physical integration
OMNICHANNEL RETAIL Digital and physical integration LOGISTIC ROLE IMPROVED STORE OF OF THE STORE IN-STORE THE FUTURE EXPERIENCE ✓ Click & Collect for pick up ✓ Focused on product and increase store traffic ✓ Self check out & digital experience Cercano a la tienda payments Cercano a la tienda Cercano
Slide 29: App enhancing the in-store customer journey
OMNICHANNEL RETAIL Digital and physical integration We are leveraging on our app to enhance the customer’s journey in the physical store with a strong focus on customization Approaching the store Purchasing and check- Browsing and selecting Delivering products Returns and exchanges out Greeting Prod
Slide 30: Using the app to shop for shoes in store
OMNICHANNEL RETAIL Digital and physical integration Case example: using the app to shop for shoes at the store Scan to check prices Check inventory Tap and pay Using the app, the consumer is able to check sizes available in inventory, view prices and scan and pay, without assistance NEED HELP SCAN T
Slide 31: Malls as urban centers
OMNICHANNEL RETAIL Malls as urban centers MALL OF THE FUTURE INTEGRATED INTO THE ECOSYSTEM Key role in data generation and customer Become the preferred urban center, engagement with Falabella positioned as a safe destination with proposals way beyond retail Opportunity to bring in tenants to become
Slide 32: Key takeaways: channel strategy
Key takeaways OMNICHANNEL RETAIL Channel Strategy Selective growth Integration of Optimizing the opportunities e-commerce with physical Home Improvement physical stores, footprint in Brazil and Mexico with a focus on Selective store closures IKEA in Chile, Peru adding value for Increase the profitab
Slide 33: Category and brand strategy: brands role
Category and Brand Strategy OMNICHANNEL RETAIL Brands role Diferentation EXCLUSIVE BRANDS GLOBAL BRANDS PRIVATE LABELS Traffic Profitability
Slide 34: Category and brand strategy
Category and Brand Strategy OMNICHANNEL RETAIL CENTRALIZE INCREASE PRIVATE EFFICIENT NON-DIFFERENTIABLE LABEL SHARE ON SOURCING CATEGORIES SPECIALIST PROCESS CATEGORIES
Slide 35: Centralize non-differentiable categories
OMNICHANNEL RETAIL Centralize non-differentiable categories We are shifting from CATEGORIES managing categories Furniture & Mattress by business units into a brand and category Bed & linings management. Electronics & Home Appliances Apparel & Footwear Health & Beauty Construction & Finishes Construc
Slide 36: Categories to be centralized
OMNICHANNEL RETAIL Centralize non-differentiable categories We are centralizing management of non differentiable categories CATEGORIES Furniture & Mattress Categories to be Centralized Bed & linings High online penetration and hard to diferentiate. Electronics & Home Appliances
Slide 37: Centralized brand-oriented management
OMNICHANNEL RETAIL Centralize non-differentiable categories Shift from a Format category management into a Centralized Brand oriented management CATEGORIES Furniture & Mattress Categories to be Centralized Bed & linings High online penetration and hard to diferentiate. Electronics & Home Appliances
Slide 38: Increase private label share: specialist categories
OMNICHANNEL RETAIL Increase private label share We are shifting from managing categories and business separately CATEGORIES Apparel & footwear Specialist Health & Beauty Categories Construction & Finishes Categories specialized by format that can be differentiated Construction Hardware Supermarket F
Slide 39: Private label penetration
OMNICHANNEL RETAIL Increase private label share Achieve high private label penetration through optimal Price/Quality relationship Apparel & footwear Construction Finishes Edible PGC Health & Beauty Construction Hardware Inedible PGC PRIVATE LABEL PRIVATE LABEL PRIVATE LABEL Sales Penetration 44% Sal
Slide 40: Purchase consolidation
OMNICHANNEL RETAIL Efficient sourcing process Purchase ASIA Consolidation +100k Opportunity to joint shipments Imported Containers by ports and Efficiencies by consolidating purchases of categories that per year suppliers are marketed by several BU’s 275 Ports of Synergies LATAM Origin Opportunity t
Slide 41: Reduce cycle times
OMNICHANNEL RETAIL Efficient sourcing process Reduce Apparel projected purchase anticipation Diversification Apparel sales projection by origin Cycle 1 to 4 months & Nearby Andean Region Times 4 to 6 months Sourcing Others Asia Buy as late as possible in Reduce the risks of suppliers the east in ord
Slide 42: Key takeaways: product strategy
Key takeaways OMNICHANNEL RETAIL Product Strategy Rationalize 1P Efficient sourcing categories process Centralize Non–Differentiable Shorten product purchase cycles category management. Diversify and optimize origins Increase private label penetration on the Specialist Capture international logistic
Slide 43: Home delivery
3 HOME DELIVERY FRANCISCO IRARRÁZAVAL DEPARTMENT STORES
Slide 44: Developing our own logistic network
HOME DELIVERY Developing our own logistic network The new Home Delivery structure will capitalize efficiencies in the flow densification costs and will continue to increase delivery speed A FULLFILMENT CENTERS B TRANSPORT FLEET First Parties Distribution Stores (1P) Centers Ship from store 3PL’s FIN
Slide 45: Developing our own logistic network
HOME DELIVERY Developing our own logistic network The new Home Delivery structure will capitalize efficiencies in the flow densification costs and will continue to increase delivery speed A FULLFILMENT CENTERS B TRANSFERS NETWORKS C TRANSPORT FLEET First Parties (1P) Distribution Stores FINAL center
Slide 46: Strategic plan
Strategic plan HOME DELIVERY Managed Network Fulfillment Network Transport DISTRIBUTION HUB XD,TRANSFER WHEELS CENTERS CENTERS AND (BACKBONES LAST Efficiency DELIVERY POINTS MILE LOGISTIC Support the scalable growth of our TRAINS) network, by efficiently using our logistics network and identifying s
Slide 47: Leveraging existing logistics assets
We lever our existing assets HOME DELIVERY to enhance our value proposition COLOMBIA 10 DC’s 2 TC’s LOGISTICS ASSETS 1.6 million sqm dedicated to logistics 518 stores across the region 67 stores PER COUNTRY MEXICO Fulfillment Network Transport 3 DC’s Growing order processing Expanding cross-dock Opt
Slide 48: Microservices platform for home delivery
We are building our own microservices platform to HOME DELIVERY support the Home Delivery Operation PROMISE New New Promise and Inventory and reservation availability ORDER MANAGEMENT New New New New Inbound Fulfillment Reverse Outbound EXECUTORS New Transport Warehouse Backstore Distribution Manage
Slide 49: Delivery options on Falabella.com
Falabella.com leverages stores and logistics capabilities HOME DELIVERY to offer competitive 1P and 3P delivery options Falabella.com Delivery options HOME DELIVERY PARCEL CLICK & COLLECT QUICK COMMERCE Same day 90 min Georeferentation 24 h/48 h for nearby stores Pick a date Same day pick-up Alterna
Slide 50: Speed and flexibility for 3P sellers
Increasing speed, service quality and HOME DELIVERY flexibility for 3P sellers Fulfillment by Fulfillment by Seller Direct Delivery 1 2 3 New Falabella + delivery + delivery through by seller through our network our network Drop off Drop off Drop off SELLER HDC SELLER HDC SELLER HDC Storage Pickup P
Slide 51: Home delivery results
HOME DELIVERY Results Faster Cost deliveries competitiveness 40% 60% Number of deliveries -30% In costs per shipment2 in <48 hours1 Managed Service Level Network 45% 60% Orders delivered with 95% Customer Service Falabella Managed Level as of June 2022 Network3 1 Percentage as proportion of customer
Slide 52: Digital banking
4 JUAN MANUEL MATHEU FINANCIAL SERVICES DIGITAL BANKING
Slide 53: Building a financial ecosystem
We are building a financial ecosystem to become DIGITAL BANKING the #1 personal bank in the countries where we operate Digital Bank Payment 6.8 million Active customers +600k Active users US$7.3 bn loan portfolio +20 million Transactions per year US$17.8 bn credit / debit card purchases LTM 17k Merc
Slide 54: Our strategy has outperformed the market
Our strategy has outperformed the market DIGITAL BANKING Credit Cards Credit Card Purchases Current Accounts Debit Card Purchases Consumer Loans (# ´000 May-22) ($million; May 22 YTD) (# ´000; May-22) ($million; May 22 YTD) ($million; Jun-22) +13% yoy 2,448 3,291 1,865 8,258 5,101 +30% 1,035 2,916 y
Slide 55: Transformation into a digital bank
DIGITAL BANKING Our transformation into a digital bank Our Value Proposition Digital Bank Branding Digital Customer Technology & Journey Data Driven Digital customer experience 100% Digital Products Agile Organization Enhance risk models CUSTOMERS SE ERS Operational efficiency
Slide 56: Digital and mobile-first client journey
Digital and Mobile-First Client Journey with DIGITAL BANKING Intuitive UX & Support from Other Channels Credit card opening Account opening QR & NFC Loyalty points Personalized Frictionless payments redemptions anti-fraud settings cross-sell of products
Slide 57: 100% digital products: credit card example
100% Digital Products: Credit Card case example DIGITAL BANKING Accelerating Customer Acquisition 215x On Us & On Them Digital Credit Card Openings superior benefits Instant and paperless (000’s) while transacting account opening 859.1 746.7 Few and simple 250.3 products 109.9 Proprietary antifraud
Slide 58: Ecosystem data to manage credit risk
Leveraging our ecosystem data DIGITAL BANKING to manage our credit risk +5,000 variables for our model ECOSYSTEM SOURCES EXTERNAL SOURCES Assets and Credit / debit card Falabella group Loyalty Fpay Seguros liabilities with transactions transactions Program Falabella Banco Falabella (transactions; ba
Slide 59: Improving operational efficiencies
Improving operational efficiencies DIGITAL BANKING Leverage 100% digital products physical presence & journeys, to allow of Ecosystem for a self-service “Phygital”(hybrid) model Branches Chile (#) Perú -29% Colombia 360 354 69 313 70 60 271 256 90 91 52 52 93 91 89 201 193 160 128 115 2018 2019 2020
Slide 60: Our strategy is delivering growth
Our strategy is delivering growth DIGITAL BANKING Product Openings Volume of card purchases (#´000) (US$ million) 61% 64% 65% 68% 72% 2.2x 3,036 2.0x 17,832 2,480 15,104 10,342 10,202 1,544 9,137 1,353 Credit Card 923 Debit Card Checking Account % On Them 2018 2019 2020 2021 LTM Jun 22 2018 2019 202
Slide 61: Healthy business with high growth potential
DIGITAL BANKING Volume of card purchases Consumer Loans stock Market share by country (%) Market share by country (%) We have a healthy business with 19.9% 12.4% high growth potential 9.3% 11.6% 4.5% 5.9% 0.6% 0.5% Source: CMF for Chile (release jun22); SBS for Perú (release jul22 for purchase and j
Slide 62: Payments
JUAN MANUEL MATHEU FINANCIAL SERVICES PAYMENTS
Slide 63: Best payment experience within our ecosystem
PAYMENTS We want to have the best payment experience within our ecosystem June LTM December 1.9 Bn 2.6 Bn TPV TPV 2022 2023 April October September March 4Q CHILE LAUNCH LAUNCH 2Q LAUNCH LAUNCH (MVP) WALLET PAYMENT OF FPAY ACCOUNT PARKING TICKET WITH QR CODES AND TRANSPORTATION CARD TOP UP September
Slide 64: Proprietary payment platform
We have developed a propietary payment PAYMENTS platform that empowers our ecosystem Simple, frictionless payment through our wallet and e-commerce platform CONSUMERS Benefits from Falabella ecosystem Higher Settlement of approval rate Maketplace sales Financial products: Low level of fraud Payment
Slide 65: Simple, frictionless payment solution
PAYMENTS We provide our customers a simple and frictionless payment solution Active Users Share of payments made with the (#) digital wallet in our physical stores One-click 600,023 (%) frictionless payment 5.1% 475,470 Digital 4.1% payment 8.2x +3.7% solutions in brick & mortar stores 1.4% 73,556 2
Slide 66: Higher approval levels and lower fraud
PAYMENTS Our payment solution is delivering higher approval levels and lower fraud Approval Rate (%) Net Fraud (NBP) On our e-commerce in Chile On our e-commerce in Chile Transform online and 110 offline payment 98% 94% experience By yearend we will complete the rollout in all our e-commerce platfor
Slide 67: Fpay as enabler for marketplace sellers
Fpay will be the key enabler to help our PAYMENTS Marketplace Sellers grow their businesses CASH MANAGEMENT Payment settlements and collection SELLERS FINANCE Casht advance Working capital financing OTHER VALUE ADDED SERVICES FRICTIONLESS, REMOTE AND DIGITAL EXPERIENCE
Slide 68: Loyalty
5 LOYALTY JUAN MANUEL MATHEU FINANCIAL SERVICES
Slide 69: Loyalty program at the center of data-driven transformation
LOYALTY Our loyalty program is the centerpiece of our transformation into a data driven company Value proposition Customers earn loyalty points for their purchases in Falabella and partner stores, which they can redeem for multiple products and experiences Benefits Special offers Flexibility Busines
Slide 70: Expanding partnerships across key categories
We continue expanding partnership LOYALTY across key categories Home Improvement Department Stores Gas & Energy E-commerce Malls # of participants (# million) Financial Services Transportation Travel 2.8x 17.5 15.7 Supermarket & Convenience Stores 10.6 6.2 Health and pharmacy 2019 2020 2021 2Q22
Slide 71: Leadership positions in core markets
We have leadership positions LOYALTY in our core markets Our 1 program 2 2 is highly valued Source: Preference data in each country. Internal tracking; August 2022 in every market
Slide 72: Customer engagement continues growing
Our customer engagement LOYALTY continues growing CMR Puntos platform in our digital channels Redemptions (#million) 10.1 Physical 3.6x Digital 7.5 71% 70% 3.4 3.4 2.8 74% 88% 92% 29% 30% 8% 26% 12% 2018 2019 2020 2021 LTM Jun 22
Slide 73: CMR Points targeted marketing tool
CMR Points is a targeted LOYALTY marketing tool… Example: Gamification for increasing customer base and retention …that seeks to engage customers through personalized challenges to earn more points +180K Customers won at least one challenge
Slide 74: Loyalty effect on cross-sells
Our loyalty program LOYALTY has a positive effect in cross-sells +17.5 million Example: Credit card openings Participants +1.8 million Acquisition campaigns Participant with Pre- qualified Credit Card +500k Openings/year (1.7x YoY) from our loyalty database
Slide 75: Increase in customer engagement and spending
…and increase customer engagement LOYALTY Example: Growth in our customers spending and customer retention in Chile Increase in spending 1.8 x 1.2 x Not Participating Potential Redeemer Redeemer & Banco Falabella customer
Slide 76: Operational leverage
6 ALEJANDRO GONZÁLEZ CFO OPERATIONAL LEVERAGE
Slide 77: Navigating a challenging context
We continue navigating through a challenging OPERATIONAL LEVERAGE context Very high Cost Adverse Investing growth in increases macro in our digital 2021 while walking economic transformation out the conditions and loyalty Now facing an pandemic economic Context of To continue deterioration Higher lo
Slide 78: Efficiency plan to deliver incremental value
Our Response: an efficiency plan to deliver incremental OPERATIONAL LEVERAGE value Higher Focused Rationalize Reduce operational product fixed cost overall integrations strategy base expenses among retailers to across our to better navigate by reducing drive efficiencies retailer adverse macro compa
Slide 79: Efficiency levers: gross margin
Comprehensive efficiency levers to improve margins OPERATIONAL LEVERAGE Rationalization of our mix of categories, brands and SKU’s Pricing management under inflationary context Revenues and Levers for 1P for high rotation and high margins Gross margin categories, 3P for longtail To improve profitabi
Slide 80: Efficiency levers: EBITDA margin
Comprehensive efficiency levers to improve margins OPERATIONAL LEVERAGE Rationalization of physical footprint, improving profitability per sqm, by Store decreasing stores sizes and selective closures operation expenses Further deployment of self-service initiatives Continue improving logistics proce
Slide 81: Margin levers, timing and impact
Comprehensive efficiency levers to improve margins OPERATIONAL LEVERAGE Store operation expenses Revenues Logistics, marketing Timing and and Levers for margins Levers for and SG&A Impact Gross EBITDA Executed by 4Q23 Margin Margin Banking Will deliver a minimum of 200bps of Gross EBITDA margin impr
Slide 82: ESG
7 GASTON BOTTAZZINI CEO ESG
Slide 83: Dow Jones Sustainability Index recognition
ESG Our sustainability efforts have been recognized by the Dow Jones Sustainability Index, as the only Chilean listed company to be selected on all four groups for the past five years 2016 DJSI World DJSI EM DJSI Chile 2017 DJSI World DJSI EM DJSI Chile DJSI MILA 2018 DJSI World DJSI EM DJSI Chile D
Slide 84: Five ESG pillars
Falabella’s purpose to make life simpler and more enjoyable ESG is supported by five ESG pillars with clear aspirations Simplificar y disfrutar más la vida Environmental Social Governance CLIMATE CIRCULARITY DIVERSITY, EQUITY SOCIAL COMPLIANCE AND ACTION AND WASTE AND INCLUSION IMPACT HUMAN RIGHTS M
Slide 85: Environmental initiatives at each business level
Implementing impactful environmental initiatives at each business ESG level 3,800 products 30% share with sustainable of apparel sales +Verde raw material during 2021 Embracing a +60 stores LEED Promoting clean energy certified stores electromobility transition with solar panels to our Home Delivery
Slide 86: Foundations for long-term ESG targets
We have set the foundations to commit to long term ESG ESG targets while achieving relevant milestones Commit and execute strategy Deploy operational levers to On track to deliver on accomplish our commitments Secured 100% our commitment to have and continually review renewable Launched a 40% of our
Slide 87: Closing remarks
GASTON BOTTAZZINI CEO CLOSING REMARKS
Slide 88: Shifting from traditional organization to product teams
We are shifting from a traditional SQUADS organization to product teams PORTFOLIOS TO ENABLE 1 2 3 4 Connect and Prioritize initiatives Speed in Flexibility and align strategy by value execution independence and execution contribution CUSTOMERS SELLERS
Slide 89: Clear measures of success for each platform
Each platforms have clear measures of success to ensure agile delivery CUSTOMER’S JOURNEY Traffic Intermediation & Retail Payments Financial Services Loyalty Delivery LOYALTY MARKETPLACE OMNICHANNEL BANKING PAYMENTS HOME RETAIL DELIVERY BUSINESS PLATFORMS Participants (#) Active Customers (#) Total
Slide 90: Simplificar y disfrutar más la vida
Robust Strategy Focused Execution Committed Team Continuing to grow requires a common purpose that focuses on our customers and our team Simplificar y disfrutar más la vida CONFIDENCIAL
Slide 91: Investor day
Investor day. CA ABE! 1A rALCnN cCUun falabellacom SSODIMAC #TOTTUS ©) mallplaza S222, Fpay*