Abc Sa · BCS:ABC
Abc Sa — Nueva Polar — Non-Deal Roadshow (January 2013)
37 slides from Abc Sa's roadshow presentation, January 2013
Slide 1: Nueva Polar Non-Deal Roadshow January 2013
NUEVAPOLAR NON-DEAL ROADSHOW January 2013
Slide 2: Company Overview
Company Overview laPolar
Slide 3: Where do we come from
Where do we come from Aconcagua Plan October 2012: US$280 millions capital increase May 2012: Agreement with Chile´s Customer Protection Agency (SERNAC , Class action) November 2011: Settlement with creditors is reached August 2011: New CEO is appointed (Patricio Lecaros) July 2011: New Board of Dir
Slide 4: Committed Board of Directors
Committed Board of Directors Company overview Georges de Bourguignon A., Vice-chairman Alberto Marraccini V. , Director Juan Pablo Vega W., Director Controller Jorge Id S., Director Control and transparency Aldo Motta C., Director Reports Andrés Eyzaguirre A., Director directly to the César Barr
Slide 5: New Management Team
New Management Team Company overview First-class team with a strong experience in the industry CEO Patricio Lecaros Andrés Molina Rodrigo Karmy Rodrigo Nazer Ricardo Rubio Álvaro Araya Olivia Brito Andrés Escabini Apparel Mngr. Home and Electronics Marketing Mngr. IT Mngr. CFO H.R. Mngr. Legal Mngr.
Slide 6: 4th Player in Department Stores
4th Player in Department Stores … Company overview … with 9% Market Share in Sales Market Share by Revenues (Sept 2012 LTM) Relevant Market Share in Chile The retail market in Chile has significant barriers to entry La Polar has smaller stores, with an average of 4,021 m2 per store Source: Com
Slide 7: Unique Portfolio of Strategic Locations
Unique Portfolio of Strategic Locations Company overview throughout Chile Chile Santiago With stores in 20 of the 24 largest cities Iquique in the country, 50% of Antofagasta Colina the stores are in the Copiapó Calama Plaza largest cities throughout Coquimbo Panamericana Norte La Serena Ovalle Puen
Slide 8: La Polar, a strong Brand Rebounding
La Polar, a strong Brand Rebounding Company Overview Established in 1920, the brand has been present in the Chilean market for almost a century December 22/2012 was the best- selling day in LA POLAR HISTORY Customers are one of the most valuable asset of the company Sales show a significant re
Slide 9: Business Overview
Business Overview laPolar.
Slide 10: New Business Model: Retail the Core Business
New Business Model … Business overview … Retail the Core Business of the Company New products – brand mix 55% sales from Apparel and Shoes 30% sales from Private Labels New store concept US$40 million in Capex in the next 2 years, for remodeling stores Searching for new premium customers % of
Slide 11: Reducing the financial risk, attracting new customers
Reducing the financial risk… Business overview 453,473 customers with LA POLAR CREDIT CARD (TLP) with debt Decrease Risk rate (1) Attracting new customers New credit card 12% New credit policy Aconcagua New collection policy Plan (1) Provisions stocks /Gross receivables Source: La Polar Ne
Slide 12: Capex Program for 2013 and 2014
Capex Program for 2013 and 2014 Remodeling 14 stores in Chile of aprox. 100,000 m2 Opening 6-8 new stores in Colombia Capex Program (US$ millions) 2013-2014 Chile Remodeling and others 50 Colombia New stores 60 Total 110 12
Slide 13: Remodeling Stores in Chile 2013-2014
Remodeling Stores in Chile 2013 -2014 100,000 m2 with a CAPEX US$40 million Jan-13 April-13 Jun-13 Aug-13 First half 2014 2 stores 3 stores 1 store 3 stores 7 stores 13
Slide 14: La Polar Colombia: growth opportunity
La Polar Colombia… Business Overview …growth opportunity Stores New Store Bucaramanga Mall Cacique Opening : November 2012 Area of 6,103 m2 Carabobo Centro Mayor Opening: August 2011 Opening: October 2010 Los Molinos Floresta Opening: October 2011 Opening: November 2011 14
Slide 15: La Polar Colombia: Expansion Plan
La Polar Colombia… Business Overview …growth opportunity Expansion Plan 3 years Capex USD 100 million Barranquilla Bucaramanga Cartagena de Indias Bogotá Medellín Pereira Villavicencio Cali 18 projects in development and study stages 2 new stores in 2013 Remodeling stores For more information
Slide 16: Aconcagua Strategic Plan
— Aconcagua Strategic Plan § laPolar
Slide 17: Aconcagua Strategic Plan
Aconcagua Strategic Plan La Polar has set specific goals for the Chilean operation, for the short and medium term, to be achieved in 2014 ACONCAGUA Sept. 2012 LTM Monthly retail revenues in Chile (UF/M2) 10 6.5 Retail Direct Margin 30% 21% Apparel and shoes (% sales retail) 55% 39% Private labels (%
Slide 18: Financial Highlights
Financial Highlights laPolar
Slide 19: Financial Performance
Financial Performance Company Financial Key indicators show an increase in revenues Highlights overview Income Statement Retail Sales in Chile CLP Billion (2) Plan Aconcagua (CLP Billion) 1Q ’12 2Q ’12 3Q ’12 REVENUES 81.1 91.6 86.5 Retail 64.8 76.4 72.1 +7% +4% +5% Financial 16.3 15.2 14.4 Gross pr
Slide 20: Financial Debt
Financial Debt Financial Debt Restructuring Senior Bond CLP$ 185 billion Present Value Original Debt Junior Bond (UF) Settlement ** CLP$ 450 billion CLP$ 236 billion CLP$ 200 billion Legal @ rate UF + 10 * settlement PS 27 * Discount rate to be defined by an external CLP$ 24 billion study Senior Bon
Slide 21: Balance Sheet
Balance Sheet Pro-forma Balance Sheet As of September 2012 Main Impacts of the Capital Increase Sep ’12 Balance Sheet Dec ‘11 Sep ’12 Pro- (CLP Billion) forma* Cash and equivalents 35 10 143 Cash Effect: Accounts Receivables 132 92 92 + CLP$ 133 billion due to Capital Increase Inventories 44 52 52 F
Slide 22: Highlights and Next Steps
HIGHLIGHTS November 2012: A new store was opened in Bucaramanga, Colombia December 2012: release credit card restrictions from regulator (SBIF) December 2012: New Senior and Junior bond filling as part of the Settlement January 2013: NUEVAPOLAR part of the IPSA Chilean Stock Exchange Index N
Slide 23: Appendix 1
Appendix 1 laPolar
Slide 24: Products
Products Full renovation of the apparel department New mix of exclusive brands 2.0 Increase square meters of exclusive brands in stores Improvements in the purchasing process New design department New mix of private brands and local suppliers 24
Slide 25: New Brands
New Brands Private Brand Customer: woman 28-35 years Business area: apparel, accesories, shoes, handbags and home Price level: Medium–High Style: Sport Fashion 251
Slide 26: New Brands
New Brands } Private Brand Customer: women 18-25 years Business area: apparel, and shoes Price level: Medium–High Style: Sport casual 26
Slide 27: New Brands
New Brands Private Brand Customer: woman and man 18-25 years Business area: apparel Price level: Medium – High Style: Sport Casual 27
Slide 28: New Brands
New Brands } Private Brand Customer: man 30-40 years Business area: apparel Price level: Medium Style: Sport Casual 28
Slide 29: New Store Proposal
New Store Proposal Change of image/ layout Remodeling 100.000 m2 in the next 2 years Capex: USD 40 MM 1st place award: Shop window of the year by the Santiago Chamber of Commerce 29
Slide 30: Store proposal main goals
Store proposal main goals are…. Increase sales and returns by m2 Improve visual merchandising to make more efficient takeoffs spaces Upgrade stores Increase market share 30
Slide 31: Appendix 2
Appendix 2 laPolar
Slide 32: Retail Industry in Chile
Retail Industry in Chile Fes Consumer Trends in Chile: Sustainable Growth of Commerce GDP and Retail Sales Solid macro scenario and domestic demand Y Total GDP CAGR of 4.2% from 2005-2011 Y Private Consumption CAGR of 6.4% from 2005-2011 ¥ Commerce GDP CAGR of 6.9% from 2005-2011 Structural economic
Slide 33: Retail Industry in Chile
Retail Industry in Chile io Retail Industry in Chile Highly Consolidated = Chile ranks 2™4 in the GRDI (Global Retail Development Index™), index that shows the most attractive developing countries for retail investment = Sophisticated and complete market consolidated in five major operators, both sp
Slide 34: Retail Industry in Colombia
Retail Industry in Colombia Consumer Trends in Colombia: Products present in the Department Store format have had a strong boost in sales = Solid macro scenario and domestic demand Commerce GDP and Private Consumption Y Total GDP CAGR of 4.8% from 2005-2011 =O=Total GDP «O—Commerce GDP =O=Private Co
Slide 35: Retail Industry in Colombia
Retail Industry in Colombia a Retail Industry in Colombia with Low Penetration Number of Department Stores and Surface = Significant participation of Chilean companies in the industry N° such as La Polar, Falabella, Cencosud and soon Ripley 63 UF/m? count 2 UF ft = Colombian competitors mainly parti
Slide 36: Financial Industry in Chile
Fina ncial Industry in Chile = Direct advantage of retailers to increase their market share due to the knowledge of the customers and their consumption habits Description Evolution of Total Credit Cards with Transactions = Chile has shown an increase in terms of average consumer loans and balance du
Slide 37: Disclaimer
Disclaimer This presentation contains forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and its management. The forward-looking statements are not guarantee of future performance and involves a number of risks and uncertainties inclu