Santiago, 10 de octubre de 2018
HECHO ESENCIAL 09/18
S.A.C.l. FALABELLA
INSCRIPCIÓN REGISTRO DE VALORES 582
En cumplimiento de lo establecido en el artículo 9 e inciso segundo del artículo 10 de la Ley
N? 18,045 sobre Mercado de Valores y en la Norma de Carácter General N” 30 de la
Comisión para el Mercado Financiero (en adelante, la “CMF”), debidamente facultado al
efecto, vengo en informar lo siguiente al mercado en general y a la CMF en calidad de
HECHO ESENCIAL relativo a S.A.C.l. Falabella (en adelante, la “Sociedad”):
En relación con la colocación de las acciones de pago correspondientes al aumento de
capital de la Sociedad aprobado en Junta Extraordinaria de Accionistas de fecha 20 de
agosto del presente año, cuya emisión fue inscrita en el Registro de Valores de la CMF bajo
el N*1.075 con fecha 27 de septiembre de 2018, se adjunta a la presente un ejernplar
actualizado de la presentación del Roadshow, a difundirse a los inversionistas con motivo
del proceso de colocación de la referida emisión. Dicha presentación incluye una lámina
final que se ha sumado a la versión anteriormente presentada a la CMF y publicada en la
página web de la Sociedad, con un resumen de hechos posteriores y por tanto no incluidos
en los Estados Financieros de la Sociedad correspondientes al período finalizado el 30 de
junio de 2018,
Atentamente,
<=
Gaston Bottazzini
Gerente General
S.A.C.l. Falabella
CC. Bolsa de Comercio
Bolsa Electrónica de Chile
Bolsa de Corredores – Bolsa de Valores
Banco de Chile/ Representantes de los Tenedores de Bonos
Banco Santander / Representantes de los Tenedores de Bonos
Roadshow
Presentation
3 Banco
+Torrus CMR $ O E INIO
| Disclaimer
This presentation is not an offer to sell or the solicitation of an offer to buy any securities of S.A.C.!. Falabella (“Falabella” or the “Company”), nor will there be any sales of securities of the Company in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such jurisdiction. The shares have not been and will not be registered under the Securities Act of 1933, as amended (the “Act”), or under any state securities laws. Accordingly, the shares described herein will be offered in the U.S.
only to qualified institutional buyers as defined under Rule 144A under the Act and outside the U.S. to Non-U.S. persons as defined under Regulation S under the Act. Securities may not be offered or sold in the U.S. unless they are registered or exempt from registration under Act.
Recipients of this presentation should carefully review the offering memorandum relating to the offering of the shares described herein, including the risk factors in that offering memorandum, before making any investment decision.
This presentation has been prepared exclusively by Falabella. The Company has prepared this presentation solely for use in connection with the proposed offering of its shares and takes responsibility for its contents. No other person is responsible for its contents.
This presentation makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of Falabella’s results of operations from a management perspective. Accordingly, they should not be considered in isolation nor as a substitute for
analysis of Falabella’s financial information reported under IFRS. A reconciliation of all non-IFRS measures used in this presentation to the most comparable IFRS metric is included at the end of this presentation.
This presentation is strictly confidential and is provided for informational purposes only. It is information in summary form and does not purport to be complete. Any opinion expressed herein is subject to change without notice, and neither the Company, the Selling Shareholder nor J.P.
Morgan Securities LLC , Merrill Lynch, Pierce, Fenner 8. Smith Incorporated (collectively, the “International Bookrunners”) is under an obligation to update or keep current the information herein. No representation or warranty, express or implied, is made concerning, and no reliance should
be placed on, the accuracy, fairness or completeness of this information. This presentation does not give and should not be construed as giving investment, legal, tax or other advice.
This presentation is not intended to be relied upon as advice to potential investors and does not form the basis of an informed decision. By participating in this presentation, each participant agrees to the terms hereof, including that it will, and will cause its directors, officers, employees,
affiliates, agents, advisors and representatives to, use the information contained in this presentation only to evaluate the proposed transaction. This presentation and its contents are confidential and proprietary to the Company, and no part of it or its subject matter may be reproduced,
redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person or published in whole or in part for any purpose without the prior written consent of the Company. If this presentation has been received in error, it must be returned immediately to the
Company.
This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding certain prospective resources, contingent resources, financial position, business strategy, plans and
objectives or future operations are forward-looking statements. These statements are often characterized by the use of words such as “believes,” “expects,” “estimates,” “projects,” “may,” “will,” “intends,” “plans” or “anticipates,” and similar terms and phrases. These forward-looking
statements involve known and unknown risks, uncertainties and other factors, which may cause the certain actual resources, reserves, results, performance or achievements to be materially different from those expressed or implied by these forward-looking statements.
Estimates and forward-looking statements are not guarantees of future performance and actual results may differ as a result of various factors and assumptions. Participants are cautioned not to place undue reliance on forward-looking statements.
Any forward-looking statement contained in this presentation is based on the assumptions and beliefs of the Company in light of the information currently available to it. These assumptions and beliefs of the Company are based on information concerning the Company and the industry and
countries in which it operates. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons why actual results could differ materially from those anticipated in these forward-looking statements, even if new
information becomes available in the future, except as otherwise required by applicable law.
This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.
An offer to sell or a solicitation of an offer to buy any securities of the Company will occur solely by means of (a) a confidential offering memorandum or (b) a Spanish-language prospectus registered with the local Comisión para el Mercado Financiero (the Chilean Financial Markets
Commission, or the “CMF”).
By participating in this presentation or by agreeing to view any of the materials presented, you agree to be bound by the foregoing limitations.
LA COMISIÓN PARA EL MERCADO FINANCIERO NO SE PRONUNCIA SOBRE LA CALIDAD DE LOS VALORES OFRECIDOS COMO INVERSIÓN. LA INFORMACIÓN CONTENIDA EN ESTA PRESENTACIÓN ES DE RESPONSABILIDAD EXCLUSIVA DEL EMISOR.
Señor inversionista:
Antes de efectuar su inversión usted deberá informarse cabalmente de la situación financiera de Falabella y deberá evaluar la conveniencia de la adquisición de estos valores.
El intermediario deberá proporcionar al inversionista la información contenida en el Prospecto presentado con motivo de la solicitud de inscripción al Registro de Valores, antes de que efectúe su inversión.
The information described in this presentation is a synthesis of the Spanish-language prospectus registered with the Comisión para el Mercado Financiero and the complete information that Falabella provides to the market about this transaction is in the aforementioned Spanish-language
prospectus registered with the Comisión para el Mercado Financiero.
“This presentation freely translates into Spanish the presentation made in English language for the international private placement of common shares by S.A.C.I. Falabella (“Falabella”), originated from a capital increase approved on August 20, 2018 by the extraordinary shareholders’
meeting of Falabella, and a concurrent and synchronized secondary offer of shares in Falabella owned by Inversiones Los Olivos S.A. It is intended to be made available to investors in Chile within a public offering of such securities. The issuance of the new shares has been registered in
the Securities Registry (Registro de Valores) of the Chilean Financial Markets Commission (Comisión para el Mercado Financiero, or “CMF”). As required by applicable law, this presentation has been sent to the CMF and is being published in the website of the issuer”.
01. USE OF PROCEEDS 04. STRATEGY
02. 05.
03. 06.
J.PMorgan
USE OF PROCEEDS
.”
,
.
( S ) INVEST IN THE COMPANY GROWTH STRATEGY
.
.
.”.
US$285M US$200M US$120M US$150M US$80M
US$138m fund the – – Develop logistic Invest in data Finance the IKEA – Consolidate
acquisition of Linio ; ande-payment analytics ¡project ‘ Sodimac brand
solutions – ; Operations in Brazil
US$147m
strengthen its | |
operation ]
ha a AE | a
(MnIO | == ¿8 | ea] E
AN +11% MSN
BALANCE SHEET
r (5 y Free float
o … increase! FLEXIBILITY f
Source: Company Filings and Bloomberg as of September 23’“, 2018.
1 Falabella’s free float increase from 26.5% to 29.3%
FALABELLA AT A GLANCE
FASHION AND
ELECTRONICS
INTA PERMARKETS
O SERVICES
COUNTRIES
REAL
ENS
HOME
Y IMPROVEMENT
US$14.0bn 13.5%
LTM 2018 LTM 2018
INVENTO DANNA]
53.8%
ANIMES
EE Adal
US$7.4bn 5.3m LEÍ
PALOS NA NES
[CIMAS with balance
UE A
LE ASE
Products Online Sales
Penetration?
A y ==> HS
NN ENCERRAR Pr AS El o SR (oy) E INT] ERE Ea ES 3 July 3rd, 2018 (651.21 CL Arola olas . A Revenue incl 1 (ETS .s
ail formats
SA NAS icral 4 O ia IEA Ec)
Falabella Chile as percentage of financial products sales for CMR Chile and Banco Falabella Chile
LATIN AMERICA PRESENTS A UNIQUE OPPORTUNITY…
Large and highly fragmented retail market NN With low banking penetration
O
US$91 9bn 37% in Latam
LATIN AMERICA MARKET VALUE BANK DEPOSITS TO GDP1
GROWING YOUNG AND MIDDLE CLASS
POPULATION FAMILIES EARNING +US$15K ANNUALLY
in
2.5x last 1 0 years
Urban population in major cities?
624.6m
. MIDDLE CLASS POPULATION GROWTH
Total population
18% Middle Class
O growth (12-17)
-59% LESS THAN 35 YEARS OLD
Source: Euromonitor International Limited, Retailing 2018 edition (current, fixed exchange rates); World Bank, United Nations. Information as of December 2017 unless stated otherwise
1 Comprised of Chile, Brazil, Colombia, Mexico, Peru and Argentina; ? Economist Intelligence Unit 2017 – Latin American Cities with a population of 500.000 or more
… WITH STRONG DIGITAL USAGE AND GROWING E-COMMERCE…
DN SN S
O 0 7 499 (
>65% a 357m pan 9% 0
Visit social media almost Internet users growth
every day, over 80% visit Active internet users between 2012-2017
1-2 times per month
N AN
US$38bn 3.1x m 42% Ex:
– O)
|
y
A
e-Commerce market e-Commerce penetration!
Latin America’s size growth between vs 10.0% global average?
e-Commerce Market Value 2012-2017
Sources: Euromonitor International Limited, Retailing 2018 edition (current, fixed exchange rates), Digital Consumer 2018 edition (current, fixed exchange rates), Information as of December 2017
1 Calculated as regional e-Commerce retail value / regional retail value; ? Excludes LatAm
PARA ACOSTA ANEMIA ARO
754 SQM OF RETAIL NINA
FOR EVERY 1,000 EUROPE
PEOPLE
1,291 sqm
STORES ARE TYPICALLY SMALLER THAN IN THE US
..0. 0.0.0. 0…..re Ee….e 3,500 sqm 9,100 sqm
SUPERMARKETS Falabella average store size US benchmark average store size
DEPARTMENT STORES
0.000.000 000000000000 6,500 sqm 13,700 sqm
Falabella average store size US benchmark average store size
Sources: Euromonitor International Limited Retailing 2018 edition; Company Fillings f
1 Excludes UK
FALABELLA: A FULLY OMNICHANNEL REGIONAL RETAILER
We simplify Latin American consumers? life by transforming their
purchasing experiences
RETAIL | DISTRIBUTION | FINANCING -LOYAL | LEADING
ASSORTMENT | NETWORK | CUSTOMERS | E-COMMERCE
T 2 En
ECOSYSTEM LEVERAGING OUR UNMATCHED INFRASTRUCTURE…
TRANSFORMING INTO A DIGITAL
Logistics Loyalty
E Leverage on our m Customer knowledge
Distribution centres and 1 Novelty
logistic network
Banco
Falabella
Payment solutions Data Analytics
= Open platform with tools for A ” Business intelligence
our customers, merchants
A A
BASODIMAC.
xx$ TOTTUS
Financial solutions Marketplace
nm Consumer Loans to our Mm Sellers integrate into our
customers platform
m Merchants financing E Longtail
1 Seller.com
E]
.-..BASED ON FIVE PRIORITIES
02.
la
CALC o CE eS
AND FULFILLMENT
Strategic
Priorities
3
e)
+
Q
me
OA
FINANCING AND
ELECTRONIC PAYMENTS
04.
PENN eS
AND BUSINESS INTELIGENCE
PLA
e oo cl NA Y do
DATO ANS
FOCUS ON ENHANCING OUR OWN BRANDS” PROPOSITION…
A. DIFFERENTIATION Saftilla 8 ASEMENT ÉL 3 AMERICANINO
An exclusive offer with strong positioning,
FASHION
B CONVENIENT PROPOSITION
= High quality / price relationship,
PROFITABILITY
= Stronger margins
¡STAR EOS A SO EA LEA E
strong private brand portfolio
[AE TISNEAAS SA o
Se > 7
. e” ,
IKEA business 4 ;
TNT AN ER STA . . AA / E
delivering quality products at affordable prices d Iimension E LE
X A
Emphasis on the design, not the designer
SANTA
INCREASE SERVICE LEVELS BY SCALING UP LOGISTICS
STRATEGIC FOCUS
FOCUSING ON
LAST MILE
ES
tracking system
SERVING
¡AENA
AND THIRD PARTIES
S y) Sii Te
( AA
| 5 Supplier Delivery
Delivery
3
DR
JUN ) E] :
Sn na 0000
Seller Reception O Exit Stores and Customer
A transfer centers
oe 000
Storage 8 picking 010 f
INTRODUCTION OF E-PAYMENTS SOLUTIONS
FRAUD ONE-CLICK
MANAGEMENT PAYMENTS
-),
MERCHANT FINANCIAL
FINANCING dS 2er PRODUCTS
TRANSACTION LOYALTY
TRACKING t-:: PROGRAMS
PAYMENT INSURANCE
RECONCILIATION
We seek to build an open platform with tools for our customers, merchants
and marketplace f
ES] LEVERAGE ON OUR CUSTOMER KNOWLEDGE UNDERPINNED BY THE DEVELOPMENT OF+-BUSINESS
INTELLIGENCE
Wi as
NS AUS
DAS US
|
EMOS
accounts
w/balance
ETSII
in the retail
business
OA
DOES THE
AUS
SPEND
WHERE DOES
SONS
Ue
SE
visits to our
– shopping
centers
in the region
Bank –
branches
e WHAT DOES WHAT DOES
Al THE CUSTOMER
¡AU Os 10D
LIKE
” +500M
visits on our
websites
O
Customer Behavior
Source: Company Filings
Note: All main figures as of December 2017; except for million active CMR cards and bank branches, which are as of June 2018
ra
FLEXIBLE AND SCALABLE TECHNOLOGICAL ARCHITECTURE
SOLUTIONS
BUSINESS
CAPABILITIES
ENABLERS
IT CAPABILITIES
PAS
TEST ENVIRONMENT
MANAGEMENT
CORE
INFRASTRUCTURE ESRANIOA
CLOUD, BIGDATA
STORAGE, NETWORK
Supported by a cybersecurity framework that strives to meet the highest global
standards f
OUR VALUES ARE AT THE CORE OF OUR STRATEGY
ONE FALABELLA TEAM
ETA Purposeful
Teo
Dow Jones !
Sustainability Indices f
In Collaboration with RobecoSAM dé
FALABELLA’S UNIQUE POSITION TO CAPTURE MARKET OPPORTUNITY
GREAT OPPORTUNITY IN LATIN
OY
UNIQUE ASSETS AND
CAPABILITIES
PROVEN TRACK RECORD OF
EXECUTION
ATTRACTIVE AND CONSISTENT
BUSINESS PLAN
SUPPORTED BY A DETERMINED
AND COMMITTED TEAM
20
Appendix
LEADING RETAILER IN THE REGION AND 2ND LARGEST
O MARKET CAPITALIZATION (US$M)
48,445
9,729
0229 5468 5204
Comp.2 Comp.3 Comp.4 Comp.5 m
4,929
O EBITDA MARGIN LTM2Q18 (%)
20.2% CARG 13′- ’17
14.3% 14.0%
9.8% Ñ
25. 7
Comp.6 Comp.2 Comp.5 Comp.1 A a
15.2%: 10.0% | 8.1% ¡ 7.8% ; 8.3% | 25.9%; 0.1%
Source: Bolsa de Comercio de Santiago, Bloomberg and Capital IQ as of September 11, 2018
BY MARKET CAPITALIZATION
O REVENUES LTM20Q18 (US$M)
045 5 657
Comp.1 Comp.2
CARG 13′ 17
6,652
4, E
3,538
2,013
Comp.3 A Comp.5 Comp.6
7.9% : 0.8% : 7.7%: 13.3%: 6.2% : 10.3% : 14.2%
O NET INCOME MARGIN LTM20Q18 (%)
10.9%
8.4%
6.0%
4. E 4. a
2.0%
Comp.5 A -) Comp.3
Comp.6 Comp.2
Note: Falabella market capitalization as of June 30th, 2018, as is shown in Offering Memorandum. All dollar figures are calculated based on the observed exchange rate as of July 3, 2018 (651.21 CLP/US$, 19.46 MEX/US$, 3.89 BRL/US$)
SOLID FINANCIAL PERFORMANCE,
REVENUES (US$M)
REVENUE
GROWTH (%)
CAGR 13” 17′: 7.7%
12,863 13,188 13,769 m0?
i | l L l l
EBITDA (US$M)
eL03
bLOz
SLO0z
9103
2103
8103
Na
REVENUE
GROWTH (%)
CAGR 13” 17”: 7.8%
1,710 1,768 1,864 1,896
i i Ñ Ñ l
eLo3
bLoz
sLO0z
9103
2103
8103
Na
NON BANKING GROSS
MARGIN (US$M) GROSS
MARGIN (%)
CAGR 13” 17”: 8.3% >
4077 43173 4426 4,505
Ñ i Ñ _ L Ñ
NET INCOME? (US$M)
eLoS
bLoz
sroz
9103
2103
8103
NIT
NET INCOME
MARGIN
CAGR 13” 17′: 3.5% >
682 714
779
eLo3
bLOz
SLO0z
9103
2103
8103
NIT
REFLECTED IN STRONG GROWTH AND OUTSTANDING PROFITABILITY
BANKING GROSS
MARGIN (US$M) GROSS
MARGIN (9%)
CAGR 13” 17′: 11.3% >
616
E ¡An
NET DEBT (US$M)
eL03
bLoz
sroz
9103
2103
8L0z
Na
MA NET DEBT
/EBITDA?S
4692 5,359 5,443 574
4,247
i ml ] Ñ L
eL03
bLoz
srO0z
9103
2103
8L03
Source: Company filings
Note: All dollar figures are calculated based on the observed exchange rate as of July 3, 2018 (651.21 CLP/US$)
1 Excludes financial operations; ? Considers Net income attributable to owners of the parent company; * Net debt / EBITDA without banking operations
AENA AAA lOlLN
The following table sets for the reconciliation of our total net income (retail) to our retail EBITDA for each of the periods presented:
Six months ended June 30, Year Ended December 31,
2018 2018 ] 2017 2017 2017 ] 2016 ] 2015
a (ChS in millions) o o
US$ in millions US$ in millions Ch$ in millions;
pd ) (unaudited) [a ) (is )
Total net income (retail) 354 230,433 227,629 738 480,410 594,669 479,755
(-) Other gains (retail) (3) (1,794) 1,141 9 5,689 160,726 33,749
(-) Financial income (retail) 23 15,183 6,733 25 16,197 15,268 33,869
(-) Financial costs (retail) (145) (94,444) (94,546) (302) (196,455) (207,569) (174,033)
(-) Exchange differences (retail) (9) (5,827) (840) (1) (466) 3,637 (18,209)
(-) Income in indexation units (retail) (18) (11,645) (10,918) (27) (17,264) (26,088) (33,455)
(-) Depreciation and amortization (retail) (222) (144,546) (129,860) (410) (267,008) (245,379) (228,159)
(-) Equity interest in profits (losses) of associates and joint 6 4,036 7,104 23 15,279 21,248 25,272
ventures accounted for using the equity method (retail)
(-) Income tax (retail) (98) (64,039) (69,582) (246) (159,921) (148,580) (134,096)
Retail EBITDA 819 533,509 518,397 1,665 1,084,359 1,021,405 974,815
MAIN EVENTS AFTER 2018
Mergers and Acquisitions
On October 9th, the Superintendencia de Bancos e
Instituciones Financieras of Chile approved the integration of
Banco Falabella and CMR operations. This integration will
generate important synergies resulting from additional income
from the accelerated growth, efficiencies in infrastructure and
technology, and the speed up of digital transformation
On August 30th, the acquisition of the 35% stake that the
Company did not own of Construdecor (Sodimac Brazil) was
made effective. As of the date, 100% of the net income of
Construdecor will be consolidated on SACI Falabella’s net
income, negatively affecting the Company’s results for 3Q18
Linio’s operation will be consolidated on the Company’s 3Q18
Financial Statements and reported under Other, Eliminations
and Annulments, negatively affecting the Company’s results
for the quarter
Organic Growth
New store openings:
– Sodimac Izcali, Mexico
– Falabella Tunja, Colombia
– Hiperbodega Precio Uno Ica, Perú
– Sodimac Independencia, Chile
– Sodimac Adrogué, Argentina
New Mall Opening:
+ Manizales, Colombia
Follow-on
On August 17’t the Comisión para el Mercado Financiero
(CMF) recorded that Los Olivos S.A. would be the only
shareholder participating in the simultaneous and
synchronized secondary offering to be held together with the
capital increase, selling 21,000,000 shares
On August 20′, the Extraordinary General Shareholders
Meeting approved a capital increase for 84.3 million shares,
where the controlling shareholders will subscribe US$ 100 MM
On September 28th the CMF authorized the Company to issue
84.3 million new ordinary shares
On October 4th, the Company received a letter from the
Controlling Shareholders stating that they will voluntary
extend their lock-up period to 180 days after pricing
Accounting Policy
The adoption of IFRS 9 will significantly increase the level of
provisioning required by the banking business during the 3Q18
Sustainability
S.A.C.l. Falabella was selected as part of the Dow Jones
Sustainability Index World, MILA and Chile
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=47963ff7ec0832d2b5956feaa899ab8dVFdwQmVFOUVSWGROUkVVelRWUk5ORTlCUFQwPQ==&secuencia=-1&t=1682376108
