Falabella S.a. · BCS:FALABELLA
Falabella — Investor Presentation (December 2023)
32 slides from Falabella's investor presentation, December 2023
Slide 1: Corporate Presentation 4Q-2023
CORPORATE PRESENTATION 4Q-2023
Slide 2: Cautionary Statement
Cautionary Statement This document contains "forward-looking statements," relating to, among other things, future operating and financial results, project performance, expenses, the impact of acquisitions and divestments, business strategy and any restructuring plans. These statements use words, and
Slide 3: Physical and Digital ecosystem with diversified presence across Latin America
Physical and Digital ecosystem with diversified presence across Latin America US$ 11.3 Bn1 +20.000 Sellers3 (-12% YoY) Key Financial Figures1 With sales in our Marketplace Retailers revenue US$ 734 MM2 US$ 479 MM2 (+ 7% YoY) (+13% YoY) US$ 12.8 Bn Third-party sales (3P) Mallplaza Revenue Total Reven
Slide 4: Constantly evolving to meet our customers' demands
Constantly evolving to meet our customers’ demands Born over 130 years ago as a tailor shop, built a powerful model with important synergies, based on the virtuous2018 circle between retail, financial services and malls Organic initiatives 1980 1993-5 1999 2006 2015 2018 2021 2022 Falabella Entry to
Slide 5: Physical and Digital ecosystem with diversified presence across Latin America
Physical and Digital ecosystem with diversified presence across Latin America Present in all major LatAm markets Department 45 Stores 35 Stores 26 Stores Stores 7 Countries Home Improvement 88 Stores 56 Stores 42 Stores 7 Stores 54 Stores 4 Stores 13 Stores 72 Stores 89 Stores Supermarkets Key highl
Slide 6: Contribution breakdown
Contribution breakdown MIX BY COUNTRY MIX BY BUSINESS Home Improvement 38% 32% US$ 5.4 billion Revenue EBITDA Mexico revenue 2% Revenue Colombia Department Stores 24% 9% 16% Revenue US$ 3.4 billion Revenue EBITDA 10% EBITDA revenue Peru Supermarkets 17% 12% 25% Revenue Brazil 2% Revenue US$ 2.5 bill
Slide 7: Our Strategy
OUR STRATEGY 7
Slide 8: Our virtuous cycle results from our omnichannel retail, marketplace and financial services
Our virtuous cycle results from our omnichannel retail, marketplace and • Sodimac • Banco Falabella • Mallplaza financial services leveraging each • Falabella • Falabella.com other to grow • IKEA • Sodimac • CMR Falabella 35 million • Sodimac Total Customers 20 thousand Sellers • Sodimac • Banco Fal
Slide 9: We transform our ecosystem leveraging data, technology and people
In this way, we transform our ecosystem by leveraging our data, technology, and people, with a focus on sustainability. JOURNEY DEL CLIENTE INTERMEDIATION FINANCIAL TRAFFIC LOYALTY DELIVERY & RETAIL SERVICES Home Delivery Commited to ESG and a Data Analytics Technology Talent sustainable business de
Slide 10: Highlights 4Q-2023
HIGHLIGHTS 4Q-2023 Clients 10
Slide 11: Strong leadership presence of Retailers & Malls in Latam
Strong leadership presence of Retailers & Malls in Latam Falabella Retail - Revenues (US$ MM) Home Improvement- Revenues (US$ MM) -9% -3% 1.556 1.423 1.318 1.421 1.146 1.108 1.287 726 810 769 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 Supermarkets - Revenues (US$ MM) Mallplaza - Revenues (US$
Slide 12: Our value proposition for customers and sellers continues to gain traction
Our value proposition for customers and sellers continues to gain traction Online GMV (US$ MM) Online GMV - 3P (US$ MM) 0% 26% 25% 26% 26% 28% 858 861 72 64 80 705 92 616 54 7% 51 611 206 53 53 202 237 50 54 222 166 150 183 172 156 158 500 504 434 363 332 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23
Slide 13: Our loyalty program is one of the most preferred in the region
Our loyalty program is one of the most preferred in the region and plays a critical role in the transformation to a data-driven company Participants (# 000’) 18,569 18,735 18,626 18,681 18,635 4Q22 1Q23 2Q23 3Q23 4Q23 Redemptions (# MM) Digital redemptions rate 29% 36% 28% 25% 30% 2,4 2,6 2,5 2,3 2,
Slide 14: We continue to focus efforts on our plan to strengthen our financial position
We continue to focus efforts on our plan to strengthen our financial position… Cash and Cash Equivalent – Non Banking (US$ mm) Inventories (US$ mm) +73% -21% 1.229 2.225 2.052 1.934 1.946 1.754 712 598 741 460 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 SG&A (US$ mm) -8% 1.093 1.009 916 914 94
Slide 15: Summary Financials (US$ MM)
Summary Financials (US$ MM) 4Q22 % revenues 4Q23 % revenues Var (%) Total sales Total sales 3.869 3.668 -5% GMV Online 858 861 0% GMV own products (1P) 636 624 -2% GMV third-party products (3P) 222 237 7% Total sales of physical stores 3.011 2.807 -7% Financial Results Non-Banking Revenue 3.200 84,9
Slide 16: Financial Position
Financial Position Net Financial Debt/EBITDA (times) Net Leverage (times) Debt By Creditor Debt By Maturity w/o Banking Operations w/o Banking Operations w/o Banking Operations w/o Banking Operations 5% Dec-23 6.5 Dec-23 1.0 23% Dec-22 6.3 Dec-22 1.1 77% Bonds Short Term 95% Banks Facilities Long Te
Slide 17: We announce our investment plan for 2024
… and we announce our investment plan for 2024 CAPEX Plan (US$ million) Store Openings in 2024 -24% vs plan of 2023 Supermarket US$200 investment in $270 20% Technology $38 $508 Department Store 10% #10 $39 70% $161 Home Improvement Opex Capex Logistics Opening 2024 & IKEA TechnologyTechnology and I
Slide 18: Highlights 4Q-2023 Financial Services
HIGHLIGHTS 4Q-2023 FINANCIAL Clients SERVICES 18
Slide 19: Our digital transformation is enhancing our value proposition
Our digital transformation is enhancing our value proposition We are continuing our path Falabella – Soriana is We are #1 player in checking towards digitalization becoming our customers’ accounts and deposits are Example: In Perú and Colombia we have primary card growing enabled immediate transfers
Slide 20: Building the leading digital bank of the Andean region
Building the leading digital bank of the Andean region Credit card & passive account openings (MM) Credit & debit card purchases (US$ MM) Credit Card Passive Account Credit Card Debit Card +214% +103% 3,2 2,5 2,7 20,859 22,007 54% 45% 16,023 60% 10,825 66% 63% 0,9 69% 75% 46% 55% 75% 25% 40% 31% 34%
Slide 21: Measures stabilized risk, but impacted our interest income
We have taken measures that has allowed us to stabilize risk, but impacting our interest income NPL (%)1 Delinquency Rate 30+ (%) Chile Colombia Peru Mexico Chile Colombia Peru Mexico 8 15 6 10 4 5 2 0 0 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 Interest Income (US$ MM) Chile Colombia Peru M
Slide 22: Highlights 4Q-2023 Falabella Retail
HIGHLIGHTS 4Q-2023 FALABELLA Clients RETAIL 22
Slide 23: Our customer-focused efforts are generating results
Falabella Retail - Consolidated Revenue (US$ mm) EBITDA Margin (right axe) Chile Peru Colombia 1.500 15 1.146 1.108 Our customer- 8,8% 10,1% 10 1.000 810 769 726 1,9% 5 500 -0,1% focused efforts are -2,9% 0 0 -5 4Q22 1Q23 2Q23 3Q23 4Q23 generating results Falabella Retail - Consolidated Inventories
Slide 24: We have a clear roadmap
We have a clear roadmap Products Store & E-commerce Profitability Offer the most attractive Store: Have the best and Operational excellence and proposal of private label, most entertaining business efficiency exclusive and global / local experience in the region brands in the region E-commerce: Enha
Slide 25: Brands play different roles in our value proposition
Brands play different roles in our value proposition Exclusive Brands Differentiation Global and local Traffic Profitability Private label brands 25
Slide 26: Brands play different roles in our value proposition
Brands play different roles in our value proposition Sneakers Corner Taller F Click & Collect Youth & Urban Fashion Personal Shopper Storytellers 26
Slide 27: ESG
ESG
Slide 28: Falabella's purpose is supported by five ESG pillars
Falabella’s purpose is supported by five ESG pillars with clear aspirations and goals aligned with the Sustainable Development Goals Making life simpler and more enjoyable Environmental Social Governance CLIMATE CIRCULARITY DIVERSITY, EQUITY SOCIAL CORPORATE ACTION AND WASTE AND INCLUSION IMPACT GOV
Slide 29: We have started our long-term decarbonization strategy
We have started our long-term decarbonization strategy while achieving relevant ESG milestones Execute strategy Deploy operational levers and cost- efficient retro-fits to reduce We achieved emissions from refrigerators, HVAC Committed 20% We integrated ESG- and lighting in our stores our commitment
Slide 30: Implementing impactful environmental initiatives at each business level
Implementing impactful environmental initiatives at each business level +15 million units 26% share +Verde sold of sales in applicable with sustainable attributes categories during considering raw materials, 2022 certificates and labeling +60 stores with Promoting Embracing a solar panels & +70 elec
Slide 31: Sustainability efforts recognized by S&P's Dow Jones Sustainability Index
ESG These sustainability efforts have been recognized by S&P’s Dow Jones Sustainability Index, as we are the only Chilean retailer recognized within the TOP 10% of CSA results. In addition, Falabella reached an A qualification in the MSCI assessment, for the first time. 2023 DJSI 2023 2016 2019 MSCI
Slide 32: E-mail Website
E-mail inversionistas@falabella.cl Clients Website investors.falabella.com