March    27th,  2013  

Contents    ü Highlights  ü  Chile  Opera1on  ü  Colombia  Opera1on  ü Debt  Restructure  ü  Consolidated  Income  Statement  ü  CAPEX  ü Q&A  

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4Q12  HIGHLIGHTS  4Q  2012  

ü  Same  stores  sales  in  Chile  grew  by  15%  

ü  Recovering  Retail  Gross  Margin  

ü  Financial  Risk  Stabilized  at  11.6%  

ü  New  Store  in  Colombia  

ü  Credit  Card  released  from  restric1ons  

ü  An  Outstanding  Capital  Increase  

ü  La  Polar  has  a  posi1ve  equity  

 

Recent  events  

ü  SERNAC  agreement  implementa1on  

ü  Nuevapolar  listed  in  the  2013  IPSA.  

ü  Store  remodeling  starts  in  March  2013.  

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Chile:  Retail  Business  4Q  2012  

CLP  Billions   4Q12   4Q11    %       2012  Retail  Revenues   96.9   85.9   13%       293.8  

22%  

SSS  (CLP  Billions)  

Retail  Gross  Margin  

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Chile:  Credit  Business  4Q  2012  

CLP  Billions   4Q12   4Q11    %       2012  Financial  Revenues   15   18.2   -­‐18%       58.2  

Gross  Loans  (CLP  Billions)  

Por[olio  by  Aging  Segments  

Risk  Rate  (Provisions)  

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Chile:  EBITDA  4Q  2012  

EBITDA    Chile   Q4`12 Q4`11 Q4`12 Q4`11 Q4`12 Q4`11Revenues 96,920 85,866 15,013 18,227 111,933 104,093

Gross  margin 23,205 17,967 11,579 9,904 34,784 27,871%  R evenues 24% 21% 77% 54% 31% 27%

SGA  w/o  depreciation (26,099) (25,053) (6,761) (3,937) (32,860) (28,990)%  R evenues 27% 29% 45% 22% 29% 28%

EBITDA (3,262) (7,046) 375 8,273 (2,887) 1,227%  R evenues -­‐3% -­‐8% 2% 45% -­‐3% 1%

Non-­‐recurring    expenses (2,395) 8,390 (2,395)S ernac  provis ionsE xtrao rdinary  s everance (1,772) (1,772)F ees  and  penalties (506) (506)Other  non-­‐recurring (117) 8,390 (117)

EBITDA  w/o  recurring (867) (7,046) 375 (117) (492) (7,163)%  R evenues -­‐1% -­‐8% 2% -­‐1% 0% -­‐7%

Retail Financial Consolidated

8,390  

8,390  

Financial  margin  includes  a  lower  cost  of  B$  4.7,  resulGng  from  reducGon  of  the  financial  debt  related  to  the  financing  company.  This  effect  does  not  affect  the  EBITDA  calculaGon  

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Chile:  EBITDA  2012  

Retail Financial ConsolidatedEBITDA    Chile   2012 2012 2012

Revenues 293,754 58,176 351,930Gross  margin 65,032 5,916 70,949

%  R evenues 22% 10% 20%SGA  w/o  depreciation (92,646) (15,527) (108,173)

%  R evenues 32% 27% 31%

EBITDA (28,890) (11,428) (40,318)%  R evenues -­‐10% -­‐20% -­‐11%

Non-­‐recurring    expenses (7,621) (21,220) (28,841)S ernac  provis ions (21,220) (21,220)E xtrao rdinary  s everance (5,155) (5,155)F ees  and  penalties (1,864) (1,864)Other  non-­‐recurring (602) (602)

EBITDA  w/o  recurring (21,268) 9,792 (11,476)%  R evenues -­‐7% 17% -­‐3%

Financial  margin  includes  a  lower  cost  of  B$  4.7,  resulGng  from  reducGon  of  the  financial  debt  related  to  the  financing  company.  This  effect  does  not  affect  the  EBITDA  calculaGon  

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Colombia  Opera1on  

CLP  Billions   4Q12   4Q11    %       2012  Retail  Revenues   9.9   8.5   18%       26.5  Financial  Revenues   0.8   0.7   18%   3.5  

Retail  EBITDA   -­‐2.6       -­‐9.7  Financial  EBITDA   -­‐0.9   -­‐3.2  EBITDA   -­‐3.4   -­‐  2.0   -­‐12.9  

SSS  (CLP  Billions)  

Risk  Rate  (Provisions)  Gross  Loans  (CLP  Billions)  

Ini1al  Debt:  

•  Bank  debt  •  Bonds  •  Commercial    

paper  

     $  445    

PS  27  $  25  

Junior  Bond          

$  249      

PS  27  $  25    

Senior  Bond        

$  196     14,1  %  

   Senior  Bond  

 $  136    

Senior  Profit:  $  60      

$  18  

Junior  Profit:      

$  231  

             $  20                      

CJP  splits    the  debt  into  2  Bonds  (Senior  and  Junior)  

18,1%  

9,6%  

Total  debt:      $470  

New  debt  is  recorded  at  a  discount  

DifferenGal  with  the  face  value  is    booked  as  profit    

Discount  rate  

 IFRS  debt:  $174  

IFRS  Profit:  $296  

IFRS,  cash  flow  from  new  debt  discounted  at  market  rates.  

Average  rate:  14,9%  

PS  27  :  $5  

69%  

7  %  

81%  

Nov  7,2011   Oct,  16,  2012  

CJP:  PrevenGve  Judicial  Se\lement,  signed    on  November  7,  2011  PS  27:  Bank  debt  BCI,  guaranteed  by  1.85  Gmes  of  normal  receivables  por]olio  of  La  Polar  

Debt  Restructure  and  Revalua1on  ($  billion)  

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Consolidated  Income  Statement:  4Q  2012  

2012  M$ 2011  M$Q4 Q4

Revenues 122,705 113,260Cost  of  sales (84,636) (86,372)Margin 31.0% 23.7%

SGA    (w/o  depreciation) (39,936) (29,951)EBITDA (6,309) (759)Depreciation  &  amortization (1,424) (2,491)Non  operating  profit 290,026 (1,619)Profit  (loss)  before  taxes 286,789 (7,173)Benefits  (expenses)  income  tax (40,573) 1,151Profit  (loss)   246,213 (6,022)

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Consolidated  Income  Statement:  2012  

2012  M$ 2011  M$12M L5M

Revenues 381,910 165,994Cost  of  sales (308,515) (132,403)Margin 19.2% 20.2%

SGA    (w/o  depreciation) (124,786) (49,202)EBITDA (53,208) (12,329)Depreciation  &  amortization (7,125) (3,648)Non  operating  profit 285,725 (6,312)Profit  (loss)  before  taxes 227,259 (25,570)Benefits  (expenses)  income  tax (39,730) 15,370Profit  (loss)   187,528 (10,200)

Capex  2013  -­‐  2014    ü  Remodeling  14  stores  in  Chile  for  

100,000  m2  

 ü  Opening  6-­‐8  new  stores  in  

Colombia  

2013-­‐2014

Chile

     Remodeling  and  others 50

Colombia

     New  stores 60

Total 110

Capex  Program  (US$  millions)  

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13  13

Mar-­‐13  

2  stores  

April-­‐13  

3  stores    1  store  

Jun-­‐13   Aug-­‐13  

3  stores   7  stores  

First  half    2014  

Remodeling  Stores  Chile  2013  -­‐2014  100,000  m2  with  a  CAPEX  US$40  million  

 Q&A  

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March    27th,  2013