Falabella S.a. · BCS:FALABELLA
Falabella — Investor Day (December 2024)
114 slides from Falabella's investor day presentation, Dec 11, 2024
Slide 1: Falabella Investor Day 2024
INVESTOR Bawa 2 O 2 4 December 11, 2024
Slide 2: Agenda
Agenda 10:00 Welcome and Safe Harbor 11:15 Coffee Break Raimundo Monge, IRO 11:25 Focused Discussions on Core Businesses (cont.) 10:05 Opening Remarks Tottus Renato Giarola, CEO of Tottus Enrique Ostalé, Chairman Mallplaza Fernando de Peña, CEO of Mallplaza 10:10 Falabella Group’s Vision and Strateg
Slide 3: Disclaimer
Disclaimer These webcasts, presentations and transcripts company's ability to successfully execute its identification and response to the preferences of contain "forward-looking statements," relating to, planned projects and strategic plans, the possibility our current and prospective customers. amo
Slide 4: Focusing on Our Five Growth Engines to Strengthen Our Ecosystem
ALEJANDRO GONZÁLEZ Focusing on Our Five Growth Engines to Strengthen Our Ecosystem
Slide 5: Connecting leading brands, retailers, financial services and shopping centers
Connecting leading Global Brands, Retailers, Financial Services, and Shopping Centers in a virtuous business cycle 35 million clients Market position #1 #1 Home Shopping Improvement (1) Centers #1 #1 Omnichannel Loyalty Multi-Specialist Program (2) Retailer #2 #1 Credit Cards & Supermarket(3) Checki
Slide 6: Our strategy is driven by four key priorities
Our strategy is driven by four key priorities that guide our efforts Enhance the Refocus our Drive a more Prioritize investment value proposition digital strategy effective decisions and capital of our five core and ecosystem organization allocation to restore businesses to development profitability
Slide 7: Focus on our five growth engines
Focus on our five growth engines: enhancing their Omnichannel retail Shopping Centers Financial Services value proposition and improving the customer experience, while restoring profitability Strategic enablers Loyalty Program Home Delivery Talent Technology & Data
Slide 8: Strengthening our ESG leadership in LatAm
While Climate action Circularity and waste strengthening our 20% emissions 7% food loss and waste ESG leadership in Scopes 1 and 2 (vs 2021) (vs 2021) LatAm and securing 73% of our energy long-term value(1) Supply from renewable sources Diversity, equity and inclusion 39.4% 51.2% Women in top and mi
Slide 9: Evolving Digital & IT Strategy
Evolving Digital & IT Strategy to Strengthen our Virtuous Cycle Building digital capabilities 2018 2022 Leveraging digital capabilities to drive growth & profitability 2023 2024
Slide 10: Strengthening Our Brands' and E-commerce
Strengthening Our Brands’ and E-commerce Specialist Experience More Specialized Marketplace Partnering with the Best Brands Sellers Sellers Sellers Cross-Functional Enabler Product Home Delivery Customer Experience Digital Marketing
Slide 11: Simpler and More Focused Operations
Reinforcing a Results-Driven and Empowered Organization with Simpler and More Focused Operations Empowerment Business Organizational and Accountability Results-Driven Redesign to Simplify Incentive Model Operations
Slide 12: Focused on Driving Profitability
Focused on Driving Profitability through Disciplined Efficient cash flow management and Expense Control, expense control Capital Allocation and Investment Processes Portfolio investment optimization Capital allocation aligned with strategic priorities
Slide 13: Adapting Our Way of Working
Lessons Learned Adapting Our Way of Working Simplified and Focused The Importance of Enhanced inventory Stronger focus on Operations around our an Agile Organization management data-driven decisions 5 core businesses to respond quickly and to ensure better to anticipate market trends effectively eff
Slide 14: Accelerate growth opportunities in our 5 core businesses
We aim to capitalize and accelerate growth opportunities in our 5 core businesses Strengthen our Strengthen Enhance and Consolidate as the Leading Digital leadership omnichannel Differentiate Our leading shopping Bank in the in the region offering Value mall operator in region Proposition the region
Slide 15: The future of our industry
Trends that are shaping The future of our industry Customers increasingly The experience will Driving Value through Monetizing Core value seamless become inseparable Loyalty Programs Capabilities to Drive Growth omnichannel options from the product
Slide 16: Loyalty
LOYALTY ANDREA GONZÁLEZ Falabella loyalty program: our ecosystem’s value creation catalyst
Slide 17: Loyalty Program in Chile
CMR Puntos is the preferred Loyalty Program in Chile #2 Leadership VALUE PROPOSITION positions in our core #2 Varied Rewards markets Special Events #1 Flexibility
Slide 18: CMR Puntos
CMR Puntos is one of the largest and more dynamic loyalty programs in the Andean Region # of participants # of redeemers # of redemptions (# MM) (# MM) (# MM) 3.3x 1.8x 2.7x 20,3 3,3 8,9 1,8 3,3 6,2 2019 2024 2019 2024 2019 2024 LTM Participants: any customer who has accumulated points within the la
Slide 19: The program enables two business objectives
The program plays a key role as an enabler of two business objectives: Data Access Boost customer (Opt-in) lifecycle
Slide 20: Enabling data sharing and expanding value creation
Enabling data sharing and expanding value creation within our ecosystem 12 MM Loyalty Customer Portfolio Participating customers (MM) 6.8 MM 33.4 MM Registered customers 20.3 MM Participating customers 11.8 MM 9.6 MM
Slide 21: Multiple uses across the whole business cycle
By multiple uses across the whole business cycle Customer Journey Business Objectives Customer Acquisition Risk Assessment Pre qualified credit cards Welcome Packs Fraud Prevention Strategic Onboarding Marketing Cross-selling Savings Driving traffic to malls and stores E-mail marketing Personalized
Slide 22: Personalization on the bank's app
And allowing for personalization on the bank’s app Personalized retail promotions in the Bank Third party promotions App with newly launched functions in the app which we monetize +30% 2X incremental incremental sales(1) sales(2) (1) Based on preliminary results after launching the functionality for
Slide 23: The program generates stickiness
The program generates stickiness Redemption Revenues (Chile, % of total) 44% ~80% Loyalty Program spending converted to sales at Falabella retailers 20% 20% 16% Others Redemption revenue considers payment for redeemed products and the use of gift cards in each format. Redemptions of Points + $ inclu
Slide 24: Incremental value per customer
…and incremental value per customer Increase Increase in Decrease in spending transactions In churn 1.4x 1.5x -55% Redeemer & Banco Falabella customer Potential Churn: clients who did not purchase during a 6 month testing period - data as of Sep'24 Redeemer
Slide 25: Technology & Home Delivery
TECHNOLOGY & HOME DELIVERY BENOIT DE GRAVE Optimized transversal logistics and technology capabilities to strengthen and differentiate our ecosystem
Slide 26: Technology
TECHNOLOGY Allows us to deliver an enhanced experience while unlocking new revenue streams
Slide 27: Four highly scalable platforms
We have successfully developed four highly scalable platforms, designed to adapt and grow seamlessly with evolving needs Supply Chain Digital Commerce Stores & Banking Merchandising Exceed customer Accelerate GMV Build labels, Position Banco delivery growth by maintain Falabella as the expectations
Slide 28: Evolving Digital & IT Strategy
Evolving Digital & IT Strategy to Strengthen our Virtuous Cycle Leveraging digital Building digital capabilities to drive capabilities growth & profitability 2018 2022 2023 2024 Deployment with focus on 100% Digital Bank & CMR Customer Experience and scalability + = Relaunch of Tottus and Sodimac st
Slide 29: Home Delivery
HOME DELIVERY Logistics is a key driver of e-commerce growth and plays a fundamental role in customer loyalty
Slide 30: Logistics enhances customer experience
Logistics enhances customer experience and is crucial in their purchase decision, driving business growth 2018 2020 2022 2024 1 2 3 4 Logistics Development of Last mile Logistics outsourcing Fulfillment facilities development services sale Development of Fulfillment Third-Party Logistics Supply cent
Slide 31: Developing our own logistics network
We develop our own logistics network by leveraging our facilities and capturing efficiencies in route densification, enabling us to increase our delivery speed 1P First Parties Fulfillment centers Transfer network Transport fleet Final customer 35 MM deliveries per year Home 55 Cross Dock Transfer C
Slide 32: Competitive delivery options for 1P and 3P
Falabella leverages its stores and logistics Total capabilities to offer Home Delivery 47% deliveries(1) 53% Click and Collect competitive Nearby stores delivery options georeferentiation for 1P and 3P Same day Next-day pick-up at external locations 24H / 48H Same day pick-up Pick a date alternative
Slide 33: Delivery speed and service levels improved
Delivery speed and service +84% levels have improved in the orders delivered with region, and we are now Falabella managed network(1) accelerating with +71% 3P sellers of our customers receive their orders in less than 48 hours(1) +61% of our customers with delivery in the capital get their orders i
Slide 34: Improved Margins and Financial Strength
JUAN PABLO HARRISON Improved Margins and Financial Strength Lay the Foundation for Sustainable Growth
Slide 35: Enhanced profitability across our five core engines
Our strategy has allowed to enhanced profitability across our five core engines EBITDA Margin (%) 3,4 7,5 7,1 81,4 28,5 77,1 76,8 1,6 5,8 5,5 5,0 4,8 16,6 4,5 -6,2 9M19 9M23 9M24 9M19 9M23 9M24 9M19 9M23 9M24 9M19 9M23 9M24 9M19 9M23 9M24 Revenue Share(2) (%) 31% 27% 20% 4% 16% (1) Figures for Falab
Slide 36: Restoring profitability and consolidating financial strength
Restoring Improving operational efficiency EBITDA Margin (%) 11,2 11,6 profitability 10,4 10,0 Efficiency initiative Inventory Logistics cost Oct 2022 9,4 reduction management 8,0 and Marketing enhancement 6,0 6,8 4,6 5,2 6,7 expense Corporate financial optimization efficiencies 1Q22 2Q22 3Q22 4Q22
Slide 37: Committed to maximizing value for shareholders
We remain committed to maximizing value for our shareholders Strengthen financial Focus Continue position to investment and capital enhancing capture opportunities allocation to ensure profitability across our 5 growth sustainable growth engines
Slide 38: Debt profile and allocation
Debt profile and Others 4% allocation optimized to Gross Debt by support our HoldCo Company 32% business needs 59% Non-banking businesses, after hedging derivatives 1% 1% 3% Strategic Business Investment: 3.038 Prioritize growth through our Debt Maturity Profile (US$ MM) 5 growth engines Non-banking
Slide 39: Our 2025 Investment Plan
Our 2025 Investment Plan(1) strategy is designed Investment Plan 2025 (US$ MM) to drive sustainable growth with a strong focus on Opex enhancing our Technology 108 omnichannel Capex Technology 58 customer experience Logistics 26 Store 99 Openings Expanding and Transforming Footprint 359 Total Invest
Slide 40: Our 2025 Investment Plan: stores opening
Our 2025 Investment Plan(1) strategy is designed Investment Plan 2025 (US$ MM) to drive sustainable growth with a strong focus on Opex enhancing our Technology 108 Stores Opening in 2025 omnichannel Capex Technology 58 15 new stores customer with focus in supermarket in Peru experience Logistics 26
Slide 41: Our 2025 Investment Plan: footprint
Our 2025 Investment Plan(1) strategy is designed Investment Plan 2025 (US$ MM) to drive sustainable growth with a strong focus on Opex enhancing our Technology 108 Expanding & Transforming Footprint omnichannel Capex Technology 58 • Enhancing Mallplaza assets in Peru and customer transformation in C
Slide 42: Continue driving profitability on the different BUs
We expect to continue driving EBITDA margin profitability on the different BUs 10.6% LTM Sep-24 Revenue: Mid-to high single digit growth Highlights: Recovery of Home Improvement ~200-300 bps Improvement in e-commerce Expansion in financial services SG&A: Flat in real terms 12.5% - 13.5% By end of 20
Slide 43: Key takeaways
Key takeaways Funds to cover Jan-25 Recovering historical Expected breakeven in international bond already investment levels and well e-commerce by YE 2026 in balance positioned to reach profitability targets Recovering growth, profitability and investment to achieve a balanced and successful physic
Slide 44: Home Improvement
HOME IMPROVEMENT ALEJANDRO ARZE Market Leadership Through an Enhanced Value Proposition
Slide 45: Market leaders in our core countries
Market leaders in our core countries with more than 260 stores 15 42 55 +US$ 5.7 B #1 in in revenues(1) Market 87 54 +20 MM 7 Share (2) Customers Countries in Chile, Uruguay, Peru and Colombia # of stores 4 per country 7 (1) LTM figures as of September 2024 includes Colombia and Mexico, operations t
Slide 46: Global slowdown in the construction industry
Global slowdown in the construction industry Leading Indicator of Remodeling Activity (1) US$B Rate of change 17% 16% 16% 13% 12% 9% 5% 2% -1% -1% -3% -3% -3% -6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024P 2025P 2025P (1): LIRA (USA)
Slide 47: Expected future recovery of the construction market
Expected future recovery of the construction market Chile Peru Colombia +19% +4% +6% -10% +3% 251,0 +15% 30,5 19,8 232,4 29,7 18,1 17,9 26,0 17,0 17,2 203,8 25,6 22,7 21,0 13,7 143,0 132,2 152,6 Sale of Chile: Peru: Lima Colombia (1) new homes (K) Santiago (1) / Callao (1) 2020 2021 2022 2023 2024P
Slide 48: Winning strategy for our three client segments
Winning strategy for our three client segments: ~50% of revenue Consumers, Clients Consumers PRO B2B PRO and B2B VALUE PROPOSITION “Offering all products and services Categories Construction Flooring Decor Painting Bath & Kitchen at the best price and in the quantities our customers need, all in one
Slide 49: Strong brand awareness and recognition
Our strategy has resulted in strong brand awareness and recognition by our customers +90% Brand awareness Top of mind +60% awareness Data from GFK Research 2024
Slide 50: Strategy focused on 4 pillars
To lead the HI market in the main countries where we operate, our strategy is focused on 4 pillars Focus on Private Growth in Product and PRO Clients Labels omnichannel experience innovation
Slide 51: Focus on PRO Clients
Focus on Sodimac is a trusted ally of our PRO Clients PRO customers, helping them execute more and better jobs, helping them grow PRODUCT PRICE RELATIONSHIP SPEED FINANCING Everything they Lowest price Best advisory Ensuring a Helping them need in bulk guaranteed service in the fast purchase to fina
Slide 52: Focus on PRO Clients: app customization
Focus on PRO App customization PRO Clients Customized Home page with PRO products CES details We enhance the PRO shopping experience with Customized discounts through greater personalization de navigation flow, adapted to in our app browsing behavior
Slide 53: Focus on PRO Clients: personalized service in store
Focus on Personalized PRO in store PRO Clients service Personalized All the services Product collection service to our used by the PRO area, co-work space best CES clients in one place and especial benefits We enhance the PRO +95 Stores provide shopping experience this service at in our stores a reg
Slide 54: Private Label
Private Private label strategy Private label Private labels Label Market categories differentiation Maintain an exclusive portfolio of Best ~30%(1) products and brands in all our of total sales channels Business Better profitability Maintain profitability by Private label categories Improving commer
Slide 55: Growth in omnichannel
We aim to become a Specialist Superstore in Assortment Growth in home improvement dominance omnichannel e-commerce by leveraging: Focus on core Home Improvement categories Frictionless Augmented purchasing profitability Strengthen the profitability of digital retail 5 experience Improved findability
Slide 56: Relaunch of Sodimac.com
Growth in We relaunched Sodimac.com omnichannel to position ourselves as the Home Improvement leaders in LatAm Strengthen Improve our value Research Online the brand proposition through effect on a more specialized purchases offline HI website Chile + Peru +404 K 69% +19% +30% +84% SKUs listed(1) of
Slide 57: Product & experience innovation: in-store exhibition
Product & Strengthening in-store exhibition experience to improve customer experience ~50%(1) innovation Revenue growth vs non transformed Transformations from Maestro stores to Sodimac in Peru (1) Revenue growth Maestro Plaza Norte & Maestro Chiclayo vs other Maestro stores in the region 3Q24 vs 3Q
Slide 58: Product & experience innovation: adapting our footprint
Product & Adapting our footprint experience to the local markets innovation Compact format Plaza Central Interlomas Sincelejo Mexico City Mexico State Sincelejo Opening Opening Opening July 2022 July 2023 September 2023 M2 M2 M2 +4,000 +5,000 +3,000
Slide 59: Well positioned to capture growth in main markets
Well positioned to capture growth in main markets Revenue US$ MM % CES/PRO(1) (LTM sep-24) Chile Maintain Strategy by categories Expense control leadership position to recover growth and without affecting CX 2,631 53% margins Colombia Expand footprint Operational efficiency Improve B2B value to new
Slide 60: Mexico: highest growth potential for Sodimac
Mexico: highest growth potential for Sodimac Monterrey Saltillo San Luis Potosi Leon Mexico City Veracruz Guadalajara 6 US$ 217 MM 15 36% years in in revenues (1), ~25% CAGR 3Q24 Stores in CES/PRO operation vs 3Q19 7 relevant clients (2) cities Optimized and standardized Enhanced PRO loyalty Looking
Slide 61: Key takeaways
Key takeaways Market leaders despite global slowdown in the construction industry. Keep developing the PRO Improve our extended We are prepared to Expand our footprint value proposition in order to assortment to become an resume growth and in Mexico increase that segment’s loyalty omnichannel Home i
Slide 62: Falabella Retail
FALABELLA RETAIL FRANCISCO IRARRÁZAVAL Becoming an Omnichannel Multi- Specialist for our core categories, in partnership with top-quality brands
Slide 63: We lead the retail industry in the three countries
We lead the retail industry Falabella Stores Best Brand Stores in the three countries we 105 74 operate Falabella.com CO, CL,PE Total Sales (1) #1 #1 US$4.8 B Market Share Kantar Brand Index 1P 3P 26 0.8 +19 MM 85 MM Active clients Total transactions 35 1.4 11 MM 692 K #Loyalty Program Clients Store
Slide 64: E-commerce has been our focus and growth driver
E-commerce has been our focus and growth driver, transforming us into 6.6MM the regional leader Active Users on the App $1.9 B 40% 1.6 B >60% >50% +15% Total Sales (1) Online GMV/ Visits LTM Under 48-Hour Click & Collect 3P Growth LTM Total GMV LTM Delivery / Total Deliveries (1) LTM approximated fi
Slide 65: Shift towards a Curated Marketplace
Shift towards a Curated Marketplace, supported by our long-term relationships with +75% Best Brands and providing them omnichannel services Best Brands 3P Growth LTM Home Advertising Stand alone Fulfillment Benefits Delivery services websites services program services 1.6% 5 >20% >80% 60% %NMV 3P LT
Slide 66: Leverage the power of our brand
Our strategy is to leverage the power From a of our brand to differentiate in our Generalist specialty categories Store and Marketplace
Slide 67: Omnichannel Multi-Specialist
To an Omnichannel Multi-Specialist Hub for top brands Apparel Beauty Footwear Home Decor Technology 90% of Sales
Slide 68: Apparel
Apparel Exclusive Brands Differentiation & Fashion 10% Brands Strategy Local and Revenue Share Private Label Global Brands and Licenses Traffic & Fashion 20% 70% Fashion & Convenience & Profitability Differentiation: 80% of what we sell, can only be bought through Falabella Channels. Offline Channel
Slide 69: Apparel: women brand segmentation example
Apparel Women brand segmentation example Convenience & Fashion VALUE PRICE Private Label and Licenses(1P) <$25 US MM <$25 US MM >$100 US MM >$50 US MM >$50 US MM <$50 US MM ENTRY PRICE <$50 US MM <$50 US MM <50 US MM >$100 US MM FORMAL / CASUAL LADY YOUNG WOMAN YOUTH / NIGHT YOUTH JEANS YOUTH SURF C
Slide 70: Beauty
Beauty Exclusive Brands Exclusive Launches Differentiation & Fashion >50% Market Share 35% 20% >10% Market Growth Brands Strategy Global Brands Revenue Share Private Label Traffic & Fashion and Licenses Our strategy is 70% 10% Convenience & Profitability focused on strengthening exclusive brands wit
Slide 71: The 3P has a role as a trends laboratory
Beauty The 3P has a role as Current International 3P Brands provide a trends laboratory access to an unlimited portfolio, innovative and trending brands Traffic & Fashion +35% +80 Local and Global of digital sales trendy brands Brands (1P+3P) are 3P Sales by Channel 10% 5% 3P 20% 20% 0% 10% 75% 70%
Slide 72: Footwear
Footwear Exclusive Brands Differentiation 10% Brands Strategy Global Brands Revenue Share Private Label Traffic, Fashion & and Licenses 60% Profitability 30%+ Fashion & Convenience Strong market share in footwear, supported by the best brands with a crucial role for the physical store Offline Channe
Slide 73: Expanding online footwear sales with brand partners
Footwear We are expanding online footwear sales in close collaboration with top brand partners, while enhancing our catalog Traffic & with 3P offerings Fashion & 3P Current Best Brands Profitability Sales by Channel 10% 5% Local and Global Brands (1P+3P) 3P 30% 30% 0% 10% 65% 60% 90% 2018 2023 LTM S
Slide 74: Home Decor
Home Exclusive Brands Decor Differentiation & Trends 15%+ Brands Strategy Local and Revenue Share Private Label Global Brands and Licenses Traffic & Trends 70% 15%+ Convenience & Profitability In Home Decor, we have developed our own brands and transitioned to an online model Offline Channel 70% Onl
Slide 75: Value proposition for mass formats driven by Private Labels
Home Decor Crafting an inspiring and convenient value proposition for mass formats, mainly driven by our Private Labels Convenience & Profitability Private Label and Licenses(1P)
Slide 76: Technology
Technology Exclusive Brands Differentiation 10%+ Brands Strategy Global Brands Revenue Share Private Label Traffic & Fashion and Licenses 90% 0% Convenience & Profitability Minimal product differentiation, with competition primarily driven by price, making the customer Offline Channel 60% Online exp
Slide 77: A differentiated strategy for each product category
Technology A differentiated strategy for each product category Peripheral or Complementary Traffic & Accessories for core and emerging Fashion products, with growth Local and Global focused on 3P in online. Brands (1P+3P) Key to profitability. Emerging Technologies Products that have become trendy a
Slide 78: Specific strategy per product category and channel
Exclusive Brands Specific strategy per product category and channel Global Private L. & Brands Licenses Apparel Beauty Footwear Home Decor Technology 10% 20% 10% 15% 10% 70% 70% 60% 30% 70% 90% 20% 10% 15% 0% Offline Offline Offline Online Online 80% 20% 70% 30% 55% 45% 30% 70% 40% 60% Differentiate
Slide 79: Key takeaways
Key takeaways Focus on Omnichannel Leverage our relationship Build on high-quality brand e-commerce (1p + 3P) to with top brands to grow online attributes to grow own drive future growth and offer hard-to-replicate products in specific niches omnichannel services and across channels Become an Omnich
Slide 80: Tottus
TOTTUS RENATO GIAROLA Refocusing Our Strategy to Better Serve Our Customers
Slide 81: More than 15 million customers in our supermarket
More than 15 million customers in our supermarket reflect the strength of our business 90 Stores +US$ 2.6 B 7.1% #2 in revenue in Market LTM sep-24 LTM EBITDA Margin 73 Stores(2) Share(1) in Revenue 2pp Peru and 4th +7% in Chile (YoY growth) in Chile +8% in Peru (3Q24 vs 3Q23 growth)(3) (1) Market s
Slide 82: Frequent Customer Engagement
Tottus a stable, resilient business with Frequent Customer Engagement Business with Stable Essential Demand(1) Supermarkets Lead in Customer Frequency(2) DemandSpending on food & non-alcoholic beverages (%) Household Purchases per client/year (#) (1) Average Top Quintile +1.6X +1.4X 53,2 42,5 31,6 2
Slide 83: The new Tottus
The new Tottus A better client price/experience equation Our strategy is built on three pillars Improved Customer Operational experience with low- engagement through excellence priced perception differentiation
Slide 84: Position Tottus as the go-to choice for competitive pricing
Position Tottus We are developing better as the go-to choice and more structured models for competitive pricing Structured More aggressive Dynamic Negotiations pricing model promotional That enables a strategic That drives margin model approach to enhancing optimization through That boosts campaign
Slide 85: Differentiate through stronger branding
Differentiate through What we expect from stronger branding, differentiation? Strengthening perishables offering leveraging our to drive customer experience ecosystem through quality, price, and reliability. Reviewing our portfolio to align with our strategy and customer needs. Leverage our corporat
Slide 86: Driving Profitability
Driving Profitability Enhanced in-store layout to While optimize the shopping Strengthening Our experience: Omnichannel Higher relevance of food categories +5pp Strategy with Improved perishable counters NPS in Chile (with personalized services) Physical Growth New pastry and bread counter and Peru
Slide 87: Seamless omnichannel experience and faster delivery
Strengthen the brand through a seamless omnichannel Relaunch of our specialist website experience and with a complete assortment of food faster delivery & non-food items in digital channels Faster delivery 90 minutes minutes for food Leverage unique features and smaller items such as a seamless e-co
Slide 88: Driving efficiency and elevating customer experience
Driving efficiency and elevating customer Physical expansion experience with a focus on our discounter format “Precio Uno” (Peru). Achieve superior efficiency and reliability through streamlined processes, cost- Continuing to Enhance effective operations, Profitability consistent delivery Simplifyin
Slide 89: Opportunity to grow in Peru through our discounter brand
Opportunity to grow in Peru through our discounter brand Fast growing demand, particularly in the peripheral area of Lima and other provinces. Emphasis on the lower price with private label and first price brands Focus on volume, high turnover and contribution Efficiency in stores, better logistics
Slide 90: Key takeaways
Key takeaways Introducing a New Private Label Transforming In-Store Expanding Our Footprint Driving Operational Brand Architecture to enhance Experiences, implementing (+6 stores in 2025) to reach Excellence by continuously customer loyalty and elevate our layout changes and more communities and gro
Slide 91: Mallplaza
MALL PLAZA FERNANDO DE PEÑA Becoming the largest mall operator in South America with a compelling value proposition
Slide 92: The largest operator in the region
The largest operator in the region with a unique portfolio of top tier assets and top of mind brands and stores 5 15 10 Tier 2.3 MM 3.7 B sqm of GLA US$ Market Cap A Assets 37 343 MM +60% of company’s EBITDA shopping visitors per year 47% centers 17 GATEWAY +4,900 GLA focused on experiences in the A
Slide 93: Falabella | Mallplaza
FALABELLA | ©) mallplaza
Slide 94: A strategically balanced retail mix
A strategically balanced retail mix delivers an exceptional visitor experience ensuring traffic and frequency % GLA F&B+entertainment Innovative gastronomic and entertainment offerings Fashion that foster enjoyment and social connection. 15% Essentials Business (Strengthen Tier A and B+ assets A val
Slide 95: Expand our digital value proposition
Expand our digital value proposition to generate new revenue streams in an integrated phygital space Omnichannel Generate digital Increase sales Generate data and Become an visitor flow to our of our tenants better understanding omnichannel services urban centers customer habits differentiator in th
Slide 96: Brownfield
Brownfield Tangible growth avenues with GLA in the next 5 years: +125K m2 +100K m2 relevant projects already under Mallplaza Vespucio Case in Chile: execution 1990 8x growth in brownfield in 34 years 2024 Benefits Faster, low risk execution Cost attractive Drives market share of current urban center
Slide 97: M&A
M&A Tangible growth 31% MS 21% MS 4% MS Future market avenues with opportunities(1) relevant projects already under Acquisition success stories: execution 2020: Mallplaza NQS 2024: Falabella Peru Complete renewal of the commercial offer Acquisitions: 3x increase in footfall 66.6% Mallplaza Peru 137%
Slide 98: Banco Falabella
BANCO FALABELLA JUAN MANUEL MATHEU Paving the Way to Become the #1 Digital Bank in Our Markets
Slide 99: Our aspiration is to become the #1 digital bank
Our aspiration is to become the #1digital bank in the countries where we operate 0.5 million 1.7 million 23.5 B 6.5 B 1.6 million US$ credit / debit US$ loan portfolio card purchases (LTM) 4.0 million 76% Active App Users 7.8 million active customers As of September 2024
Slide 100: Our strategy has outperformed the market
Our strategy has outperformed the market Credit Credit Card Current Debit Card Consumer Cards Purchases Accounts Purchases Loans Branches (# ´000; Aug-24) ($MMM; Aug-24 YTD) (# ´000; Sep-24) ($MMM; Sep 24 YTD) ($MMM; Sep-24) (#; Sep-24) +1% 1% CAGR +17% CAGR +40% CAGR +38% CAGR 0% CAGR -15% CAGR CAG
Slide 101: Our strategy is suited to deliver profitable growth
Our strategy is suited to deliver profitable growth A mobile-first Simple, intuitive Accurate risk Decoupled modular and API Low experience with a products prediction and oriented architecture spending strong presence in our enhanced by the personalized combined with an agile discipline high-traffic
Slide 102: Mobile-first digital client journey with intuitive UX
Mobile-first digital client journey with intuitive UX Our app offers a wide Driving a significant increase range of features in our App Active Users (million) Instant credit card & account opening Immediate & simple transfers 2.4x Loyalty point redemptions Personalized anti-fraud settings Frictionle
Slide 103: Integrating AI into customer interactions
Impact 3K AI Interactions in Integrating AI the first month into customer +9.4 pp More accuracy than agents interactions 81% Resolution Gen AI Bot 61% NPS Survey for transaction disputes that offer self-served interactions for 65% of the cases -13% FTE reduction
Slide 104: Benefit-based value proposition drives primary usage
Our benefit-based value proposition drives Card purchases (US$ B) primary usage across 2.2x our payment methods At Falabella 4.7 Group Outside 3.9 18.8 6.6 LTM Sep-19 LTM Sep-24 Promotions within Monthly purchases Falabella ecosystem by customer (#) 1.9x Promotions with business partners Best loyalt
Slide 105: Leveraging ecosystem data to enhance risk prediction
Leveraging Ecosystem our ecosystem data… data usage to enhance risk prediction Ecosystem sources(1) Assets and liabilities Superior credit Credit / debit card Falabella group Loyalty Seguros with Banco Falabella risk assessment transactions transactions Program Falabella (transactions; balance) Soli
Slide 106: … to drive impact
… to drive impact NPL PSP fraud Cost Per Acquisition % loan book % total payment volume US$ / new credit card active customer 0.30% 90 2,9 0.18% 3,4 25 4,0 Industry Industry benchmark(1) benchmark(2) 5,6 5,6 PSP acceptance rate 5,5 % transactions 3,6 93% Digital marketing in -53% falabella.com vs pu
Slide 107: Contained expenditure to drive financial efficiency
Contained expenditure to drive financial efficiency Active customers/FTE Loan Portfolio/FTE (US$ MM) 1.6x 1.5x 1.372 1,2 868 0,8 LTM Sep-19 LTM Sep-24 Sep-19 Sep-24
Slide 108: More stable and normal consumer credit delinquency rates
…and in the industry, we are beginning to observe more stable and 'normal' consumer credit delinquency rates across the region Industry IndustryNPL NPL(%) Industry Industry consumer NPL (%) loan growth % consumer loan book YoY % 2019 / 2024 6.1 23.9 12.9 3.1 3.2 6.7 1.4 2.6 2.6 2.5 -1.4 2019 2020 20
Slide 109: Well positioned to grow in the countries we operate
We are well positioned to grow in the countries we operate… Becoming our customers’ primary bank Profitability recovery enables future growth Credit and debit card purchases Sight Deposits Net Income (US$ B) (US$ MM) (US$ MM) 3.0x 2.5x 18.0 22.9 14% 11.3 1.6 1.3 7.0 1,732 30% 86% 2019 2020 2021 2022
Slide 110: Key takeaways
Key takeaways Our value proposition Our customer base, A more stable credit risk has traction among benefits and ecosystem context will allow us to customers data generate a accelerate loans growth distinctive competitive advantage We are well positioned to grow in the countries we operate
Slide 111: Closing Remarks
Closing Remarks ALEJANDRO GONZÁLEZ
Slide 112: Closing Remarks
Closing Remarks Unlocking Growth Potential Delivering Unmatched Omnichannel Driving Stronger Profitability Across Markets Customer Experiences Our 5 growth engines are ready to Continuously delivering customer-centric Focused on consistently capture opportunities and drive a omnichannel value by sta
Slide 113: Nf + falabellazom | \sopIMac.
Nf + falabellazom | \sopIMac. TOTTUS | ©) maliplaza | & sancoraabete FALABELLA
Slide 114: Slide 114