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CORPORATEPRESENTATION2017
InRetail Overview
Multi-format retailer with exclusive focus in Peru
Leading positions in its 3 segments
#1 supermarket chain
#1 pharmacy chain
#1 shopping center operator
Controlled by Intercorp Peru, one of Peru’s largest
business groups
2
InRetail is part of one of Peru’s leading business groups
Education
77.6%100.0%
Float1/ 28.8%
BVL: INRETC1
1/ Includes 6.3% of Nexus
3
InRetail at a Glance
Sales area / GLA
# Employees
# Stores / S.Centers
N/A
11,959
1,155
627,231 sqm
435
319,168 sqm
14,249
231
Supermarkets Pharmacies Shopping Malls
Adjusted EBITDA 70 8790
Revenues 820 1431,374 2,322
245
LTM Q3’17
(US$ millions)
58.8% 35.1% 6.1%
36.5% 28.2% 35.2%
% of Revenues
% of Adj. EBITDA
19
6.6% 8.5% 80.0%Adj. EBITDA Margin1/10.5%
Note: FX of 3.298 (average LTM Q3’17)1/ For Shopping Malls is calculated over the Net Rental Income
4
SIGNIFICANT UPSIDE POTENTIAL
MARKET LEADERSHIPWITH CLEAR STRATEGY
STRONG FINANCIAL RESULTS
CAPEX2017 - 2019
5
SIGNIFICANT
UPSIDE POTENTIAL
1
6
Fastest growing economy boosts emerging middle class
Real GDP Growth Population by Socio-Economic Category(2009-2016 CAGR)
1/ Average Real GDP growth of Colombia, Brazil, Chile, MexicoSource: IMF – World Economic Outlook
2.4%
Perú
4.6%
Latin America 1/
~1.9x
GDP per Capita
6.06.1
8.79.0
13.313.6
Source: IMF – World Economic Outlook Estimates
(2016, US$ 000)
PeruColombiaBrazilChile MexicoArgentina
Average: US$9.8
Source: APOYO Consultoría 2017
SEC
% of total population
Annual Income
2005 2016
+29p.p.
-29 p.p.
54%
25%
17%
35%$ 7,272
$ 4,545
D
E
5%
14%
15%
33%$ 13,575C
A
$ 24,180
B
7
Significant upside potential for modern retail
Supermarkets Pharmacies Shopping Malls
5.0
4.3
3.7
2.6
2.39788
69
50
208
Source: Euromonitor, 2016
Sales of Retail Pharma per capita US$ - 2015
Source: Accep 2016
Malls per million people - 2015Penetration as a % of Total Sales - 2016
Source: Business Monitor, 2015
ChileBrazilPeru Colombia
Mean ex-Peru: 3.9
~1.7x
Colombia ChileBrazilPeru Mexico
Mean ex-Peru: 115.4
~2.6x
56%
24%
59%
68%
52%
BrazilPeru Chile Mexico
Mean ex-Peru: 58.8%
~2.4x
Sales area per capita:Peru 0.23 sqm vs Mexico
0.40 sqm
8
EcuadorEcuador
Opening Peaking Maturing Closing
9
Peru: Rising Retailing Market in Peaking Stage
Global Retail Development Index Opportunities
Peru (2002)
Chile (1998) Mexico (2003)Brazil (2005)
Peru (2015)Brazil (2013)
Mexico (2009)
Mexico (2016)
Chile (2016)
Growing middle class
Consumers willing to explore organized formats
Consumers seek organized formats and global brands
Real estate affordable and available
Consumer spending has expanded
Sophisticated local competition
Real estate difficult to secure
Consumers used to modern retail
Higher discretionary spending
High competition
Real Estate expensive and not readily available
2016 Ranking
1. China6. Turkey9. Peru
15. Colombia20. Brazil25. Paraguay
Peru top-ranked LatAm country in the GRDI
Retail is gaining force, mainly in some of Lima’semerging neighborhoods and in secondarycities
Consumer confidence is the highest in LatAm
Increasing development of malls with space fornew players.
Strong interest from fast-fashions
Peru:
Source: ATKearney – The 2016 Global Retail Development Index TM
MARKET LEADERSHIPWITH CLEAR STRATEGY
2
10
Supermarkets Pharmacies
First mover in 17 out of the 23 cities outside of
Lima
Total sales area (sqm): 319,168
62% of stores are owned1/
(7)
(1)
(5)
(3)
(74)
(3)
(2)
(1)(1)
(2)
(2)
(2)
(2)
(1)(1)
(125)
106 Spmkts
125 Mass
Present in all of Peru’s 24 departments
100% of stores are rented
42% in Lima / 58% in Provinces
Largest nationwide footprint of premier retail locations
1/ Owned by Supermercados Peruanos or through a related party
Shopping Malls
First mover in 6 out of the 12 cities
Total GLA (sqm): 627,231
Piura (2)
Chiclayo
Trujillo
Arequipa
Juliaca
Chimbote
Lima (8)
Cajamarca
Cusco
Huánuco
Huancayo
Only modern shopping mall
19 Malls
11
(8)
(7)(39)
(23)
(21)
(25)(15)
(9)(20)(41)
(37)
(5)
(9)
(70)
(34)
(47)
(16)
(51)
(483)
(77)
(52)
(4)
(3)
(59)
1,155 Stores
Openings and SSS by Segment
Same Store Sales (SSS)Openings
319 316 304 290 270 249 225 306
Q2’17Q1’1720162015201420132012 Q3’17
SupermarketsSales Area (‘000 sqm)
No Mass 4 2 2 19
PharmaciesNo Stores
Shopping MallsGLA (‘000 sqm)
No Malls 13 15 17
Supermarkets
Q2’17
5.8%
Q1’17
7.9%
2016
1.2%
2015
3.7%
2014
4.4%
2013
0.4%
2012
3.2%
Q3’17
3.9%
Pharmacies
18
12
1,155 1,149 1,125 1,107 921 837 725
580
Q2’17Q1’1720162015201420132012 Q3’17
627 626 626 626 582 553 399
286
Q2’17Q1’1720162015201420132012 Q3’17
2012
13.6%
Q2’17
-5.6%
Q1’17
-3.3%
2016
5.9%
2015
5.1%
2014
8.5%
2013
2.7%
-4.5%
Q3’17
No Spmkts 82 96 99 104
Shopping Malls
5.2%
2015
4.7%
2016
5.2%
201420132012
9.9%
1.3%
Q3’17
2.6%
Q2’17
4.6%
Q1’17
3.1%
19
59
106
Note/ Shopping Malls’ SSS include anchor stores
70
106
19
101
107
19
YTD’17: 5.8%
YTD’17: -4.5%
YTD’17: 2.9%
125
106
19
Supermarkets Segment
Formats
One stop shop: food and non-food products, and
entertainment to differentiate from traditional markets
Attractive price positioning through “Every Day Low
Price” strategy
Fastest growing chain with largest presence across
Peru
Compact sized formats provide flexibility to grow
Secured access to landbank and Real Estate team to
sustain growth
Launched e-commerce platforms for Plaza Vea and
Vivanda brands
Ranked 12th among the most valuable brands in Peru
(Brandz)
Sales arearange (m2)
# of StoresTotal / Provinces
BrandRevenues
LTM Q3’17 S/4,532 mm
2,000 – 5,000
500 – 2,000
900 – 1,200
69 / 28
29 / 6
9 / 0
Supermarkets15%
High-end6%
Compact Hypermarkets
79%
Figures as of the las twelve months September2017*Supermarkets consider revenues from Mass format
13
14
Discount Model
• Low CAPEX, low cost, every day low price format to
capture untapped demand and penetrate traditional
trade
• 125 stores between 100 and 300 sqm in Lima
• Testing value proposition (assortment, price,
store size, etc.)
• Ensuring cost structure through store productivity
and efficient supply chain
• Piloting a small distribution center in the south of
Lima
Pharmacies Segment
Pharmaceutical Retail Market
# of Stores
PlayerModern Market
1,149
~7,000
~ 1,500Other
chains
Mom & Pops
53%
48%
Total Market
35%
32%
32%
Sustainable “Every Day Low Price” strategy…
High market-share
Strong bargaining power with suppliers
High penetration of profitable private labels
Operational efficiencies
…with fast store growth
Small, standardized formats (~120 sqm)
Limited Capex of US$60,000 per store
100% leased stores with proven renewal track record
Ranked 11th among the most valuable brands in Peru
(Brandz)
Note: Figures as LTM Q3’17Source: IMS.
AssistedSales Model
15
Shopping Malls Segment
Shopping Malls Sales
7,206
2,167 2,173 2,580
4,135
5,458
Otros 1/
Source: ACCEP 2017
Falabella includes Open Plaza and 60% of Mall Aventura Plaza
Parque Arauco includes its malls and 50% of Mega Plaza
1/ 6 additional malls, 40% of Aventura Mall and 50% of Mega Plaza
Sales (S/ millions) 2016
Occupancy Rates
97%
2014
94%
Q3’17
97%
Q2’17
96%
Q1’17
96%
2016
97%
20152013
93%
2012
92%
16
Nationwide premium portfolio of 19 locations
627k sqm of GLA, an expansion of 7% over the
last 24 months
Preferred partner for local and international
tenants:
High tenant renewal rates and low
concentration of renewal per year
High occupancy levels despite recent important
additions in GLA
Secured access to landbank to sustain growth
Ranked 4th among most valuable brands in Peru
(Brandz)
3STRONG FINANCIAL
RESULTS
17
Consolidated Financial ResultsMillion Soles (S/ mm)
Highlights Revenues
Adj. EBITDA Net Income
5,6905,305
1,9121,794
6.5%
YTD’17YTD’16Q3’17Q3’16
+7.3%
183176
6349
28.9%
YTD’17YTD’16Q3’17Q3’16
+4.0%
575561
200196
2.2%
YTD’17YTD’16Q3’17Q3’16
+2.5%
Margin 10.9% 10.5% Margin 2.7% 3.3%
18
10.6% 3.3%
Gross Margin
31.1% 30.7%31.0% 30.5%
10.1% 3.2%
Resilient growth in revenues and double digit growth in net income, in a still slow macroeconomic environment
Supermarkets: high single digit growth in revenues and double digit growth in EBITDA
Pharmacies: revenue growth improvement and consistent gross margin expansion
Shopping Malls: high occupancy rates and positive tenants’ SSS
Financial Results by FormatMillion Soles (S/ mm)
4.7%
YTD’17
367
54%
46%
YTD’16
357
50%
50%
Q3’17
128
51%
49%
Q3’16
122
48%
52%
+2.8%
YTD’17
5,372
62%
38%
YTD’16
5,001
61%
39%
Q3’17
1,802
61%
39%
Q3’16
1,689
60%
40%
6.7%
+7.4%
Margin:
Net Rental Margin:
83.1% 79.5%
347333
117114
2.4%
YTD’17YTD’16Q3’17Q3’16
+4.2%
212211
7374
-0.4%
YTD’17YTD’16Q3’17Q3’16
+0.4%
Spmkts
Pharmacies
Revenues Adj. EBITDA
7.2% 7.1% 7.1%
19
Gross Margin
28.8% 28.5%28.8%
Gross Margin
70.3% 69.4%69.4% 82.8%
28.5%
66.9%
6.8%
79.9%
InRetail Consumer - Financial ResultsMillion Soles (S/ mm)
Revenues Adj. EBITDA
3,3523,062
1,1001,018
8.0%
YTD’17YTD’16Q3’17Q3’16
+9.5%
20
200179
6659
10.7%
YTD’17YTD’16Q3’17Q3’16
+11.6%
2,0291,948
705675
Q3’16
4.5%
YTD’17YTD’16Q3’17
+4.1%
169180
6364
-1.2%
YTD’17YTD’16Q3’17Q3’16
-6.2%
Margin: 5.8% 6.0% 5.8%Gross
Margin26.5% 26.3%26.4%
Margin: 9.4% 8.9% 9.2%Gross
Margin32.6% 32.4%32.9%
26.1%
32.9%
6.0%
8.3%
Su
pe
rma
rke
tsP
ha
rma
cie
s
Consolidated Net IncomeMillion Soles (S/ mm)
2121
Net Income
183176
6349
+4.0%
+28.9%
YTD’17YTD’16Q3’17Q3’16
Net Margin 2.7% 3.3%
Net Margin 3.3% 3.3%
3.3%
3.2%
171169
6459
+1.0%
+8.3%
YTD’17YTD’16Q3’17Q3’16
Net Income Breakdown
Net Income excluding FX and mark-to-market
3.2%
3.0%
49
Net Income Q3’17
63
Higher Tax
-5
Higher D&A
-2
FX
17
Higher Mark to Market
-4
Lower Net Financial Expenses
4
EBITDA Growth
4
Net Income Q3’16
Net Income Q3’17: +8.3%
+2.2% Adjusted EBITDA
-7.1% Financial Expenses, net
+14.6% Taxes
Consolidated Capex and Free Cash FlowMillion Soles (S/ mm)
22
CAPEX Cash-Flow Breakdown
Free Cash Flow LTM Q3’17: S/ 247 mm
159
130
119
195
87
161
79
Q3’16Q2’16Q1’16 Q2’17Q1’17Q4’16 Q3’17
197
244
158
443
Ending Cash
Balance Q3’17
Other Non-Operating Investing Activities
-103
Financial Expenses
-136
Debt Increase
CAPEX
-408
Operating Cash Flow
Starting Cash
Balance 2017
2016: S/ 523 mm YTD’17: S/ 408 mm
Consolidated Financial DebtMillion Soles (S/ mm)
Consolidated Financial Debt
23
USD Exposure
1,668
1,125
542
1,722
324
1,398
2,446
285
2,160
2,670
325
2,344
2,659
432
2,227
2,792
435
2,357
2,780
449
2,330
Debt
Cash
Net Debt
1/ Since 2015, ratios are adjusted for positive hedge effect
3.4x3.5x3.3x
3.6x
4.0x
3.6x
4.0x
3.6x
2.9x
1.3x
2.8x
3.2x
2.9x2.9x
LTM
Q3’17
LTM
Q3’16
20162015201420132012
Debt/EBITDANet Debt/EBITDA
28%38% 35%
40%
72%
23%23%
22%
39% 42% 39%
sep-17dic-16dic-15dic-14
Hedge PENUSD
Debt by SegmentMillion Soles (S/ mm)
24
Total Consolidated Debt: S/2,780 mm
Debt / EBITDA: 3.4xNet Debt / EBITDA: 2.9x
Debt
Cash
Net Debt
976
306
670
1,095
215
880
1,347
168
1,179
691
656
35
624
81
543
1,111
124
987
3.0x3.0x
2.7x
3.1x3.2x
3.0x2.9x 2.8x
2.4x
2.0x
2.2x
2.6x2.4x
2.6x
2015201420132012 LTM
Q3’17
LTM
Q3’16
2016
Debt/EBITDANet Debt/EBITDA
1,422
202
1,220
1,248
128
1,120
4.2x4.3x4.3x4.4x
5.5x5.4x
8.2x
3.7x4.0x
4.9x4.7x
0.4x
3.3x3.7x
LTM
Q3’17
LTM
Q3’16
20162015201420132012
1,402
277
1,125
1,257
162
1,095
1,273
168
1,105
1,519
273
1,245
1,575
211
1,364
1,205
235
969
1/ Since 2015, ratios are adjusted for positive hedge effect
25
USD Debt Exposure and Debt Maturity by SegmentMillion Soles (S/ mm)
19% 20% 21% 20%
81%
26% 25% 26%
55% 53% 54%
dic-14 dic-15 sep-17dic-16
36%
55%47%
55%
64% 21%22%
19%
24% 31% 27%
dic-16dic-14 dic-15 sep-17
USD Exposure Debt Maturity
PENUSDHedge
PENUSDHedge
207147
205
75
59
52
51
68
120 948
2020
26
2018
221
2021+
998
2019
264
2017
233
Debt MaturityInterests
45 46
83 80
77
17
189
2020
94
2017
11
9
2019
126
2021+
1,277
1,088
128
2
2018
Interests Debt Maturity
4CAPEX
2017-2019
26
27
CAPEX 2017 - 2019
2017 Key Investments Projected CAPEX of S/2 B for 2017-2019
Supermarkets
Pharmacies
Shopping Malls
Opening of 4,800 sqm of sales area
Initiated construction of new Distribution Center to be fully operational in 1H 2018
+70 new pharmacies
Start construction of Puruchuco mall (120k sqm of GLA)
By Type of Investment
Supermarkets40%
Pharmacies13%
Shopping Malls47%
New stores, malls and landbank
70%
Refurbishing and expansions
12%
Maintenance7%
Logistics, IT, other12%
5APPENDIX
28
29
Composition of Stores by Age
Pharmacies
Supermarkets
73% 72% 72% 70% 72% 72% 72% 75% 78% 77% 78% 83% 83% 85%
7% 8% 10% 9% 10%10% 9% 11% 14% 8% 9% 7%
10% 10% 10% 10% 9% 12% 14% 8% 9% 7%9% 12% 14% 11% 10% 7%
88%
4%4%
5%3%3%3%3%5%
Q1’16
5%
Q4’16
6%
Q1’17
5%
Q2’17Q3’16Q2’16
6%
Q3’15
4%
Q2’15Q1’15Q4’14Q3’14
4%
Q2’14
6%
Q1’14 Q3’17
5%
Q4’15
5%
Mature1-2 years 2-3 years0-1 years
52% 52% 51% 49% 49% 51% 54% 59% 62% 64% 65% 62% 61% 62%
8% 11% 18% 21% 20% 20%16% 14% 13% 12%
11% 10% 10%24% 23% 23% 18% 15% 15% 14% 13% 13% 12% 11%9% 9% 8%
18% 17% 16% 15% 15% 14% 12% 11% 11% 10% 12%18% 19% 20%
64%
9%
10%
17%
Q3’15Q2’15Q1’15 Q2’17Q1’17Q4’16Q3’16Q2’16Q4’15 Q1’16Q1’14
6%
Q2’14 Q3’14 Q4’14 Q3’17
Mature2-3 years1-2 years0-1 years
30
Cash Cycle
Pharmacies
Supermarkets
31131
1132323244-29-30-29
-43
-29-30-30-39
-31-36
-31-35-32-39-38
120
100
80
60
0
-20
-40
-60Q1’16
61
93
Q4’15
52
93
Q3’15
59
92
Q2’15
54
93
Q1’15
59
93
Q4’14
52
90
Q3’14
59
93
Q2’14
53
99
Q3’16
60
90
Q2’16
57
88
Q3’17
73
105
Q2’17
61
91
Q1’17
55
86
Q4’16
56
99
Q1’14
52
94
CycleInventory TurnoverDays Acc PayablesDays Acc Receivables
3344
434333344
3
-24-29
-23-26-24-24-25-27-30-32-27-19-17-18
-10
120
100
140
80
0
-20
-40
Q3’15
83
116
Q2’15
78
112
Q1’15
112
Q4’14
82
104
Q3’14
87
107
81103
126
Q1’14
103
116 116
Q2’16Q2’14
83
111
Q1’16
84
112
Q3’17Q4’15
105
3
Q2’17
89
121
Q1’17
8477
Q4’16
95
125
Q3’16
8888
120110
Days Acc Receivables Days Acc Payables Inventory Turnover Cycle
This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities. Any offering of securities
will be made solely by means of an offering memorandum, which will contain detailed information about the company and its business and financial results, as well as its financial statements.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended.
This p<resentation includes forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current beliefs and
expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and assumptions, including, among other
things, general economic, political and business conditions, both in Peru and in Latin America as a whole. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are
intended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new information, future events or other factors.
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