Earnings Release 3Q-2021

Management Comments

Third quarter 2021 Earnings

Gaston Bottazzini

CEO of Falabella

We have continued to make good progress building our physical-digital ecosystem. Our omnichannel platform had e-commerce and physical store sales growth across the region that totaled 23% for the third quarter. Our e-commerce platform registered online sales (GMV) of US$ 812 million in the period and US$ 3,482 million over the last 12 months. Our Marketplace business continues to expand and reached a GMV of US$ 730 million over the 12 months ended September 2021.

As mobility restrictions become more relaxed, our customers are returning to our stores and appreciate the value of our omnichannel proposal.

Our international business is recovering well, especially in Peru and Colombia, where our retail businesses reported revenue growth of 16% and 22% in local currency terms, respectively.

Our mobile channels continue to strengthen their impact on online sales. The falabella.com App represents 45% of GMV in Department Stores Chile, while the Home Improvement App represents 21% in 3Q21.

We continue to capitalize on strong

positive momentum for Home Improvement products. Regional revenue for the format grew 26% and its online business continues to expand, recording sales of US$ 809 million over the last 12 months.

Banco Falabella continues to strengthen its fully digital credit cards, checking accounts and consumer loans. We accelerated issuing fully digital cards during the third quarter of 2021, totalling more than 170,000 cards in Chile, Peru and Colombia. Also 56% of financial product origination during the last 12 months was captured through digital channels.

In addition, the digitization of our customers continue to advance. Today more than 95% of customer service interactions in Chile are through digital channels.

Our proprietary payment processing platform, Fpay, registered a TPV of US$ 2,505 million over the last 12 months.

Growth in our loan portfolio resumed during the quarter, which expanded by 7.9% in Chile and 6.8% across the region, YoY. We are capturing the upturn in demand for loans, leveraging on improvements in our capture models and our digital capabilities,

Our loyalty program continues to grow, which is driving increased interaction with our customers throughout the region and reached 14.6 million participants (+60% YoY).

Today, our e-commerce platform triples the sales of 2019. We are very optimistic about the potential of Falabella.com to drive sales for both our retail formats and Sellers.

We continue making progress with our selective expansion plan. We opened our eighth home improvement store in Mexico and are very satisfied with our business performance there. We are also encouraged by the positive performance of our business in Brazil, and improvements in the Sodimac-Dicico proposal, which has led us to examine new potential expansion plans for that market.

Highlights 3Q-2021

Online GMV	US$ 812million
+185% vs 3Q-2019

Store Sales

+40% YoY US$ 3.279million

Net Income

+283% vs 3Q-2019

TPV

US$ 226million

US$ 599million

investors.falabella.com

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Highlights for the period

3Q20

3Q21

Var (%)

Main Indicators

US$ million

Total sales
GMV Online	972	812	-16,5%
GMV retail (1P)	759	655	-13,7%
GMV marketplace (3P)	213	157	-26,4%
Total sales of physical stores	2.342	3.279	40,0%
Total sales	3.314	4.091	23,4%
TPV	713	599	-16,0%
Financial Results
Non-Banking Revenue	2.731	3.228	18,2%
Financial Services Revenue	331	344	4,0%
Total Revenue	3.062	3.572	16,7%
EBITDA	221	480	117,5%
Net (Loss) Income	5	226	4075,8%
Balance Sheet
Cash (non-banking)	1.495	650	-56,5%
Gross Loan Book	5.748	6.137	6,8%
Total Net Debt (Exc. Banking)	3.789	3.623	-4,4%

Retail business in Chile continues to grow steadily

Achieved once again double-digit growth again compared to 2019

• Strong sales growth continued in every retail format in Chile during the third quarter, accompanied by the recovery in sales at physical stores, together with sustained performance from e-commerce."

Revenue 3Q 2021/2020

Revenue 3Q 2021/2019

Department Stores

Home Improvement

Supermarkets

+39% +75%

+33% +67%

+8% +28%

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Highlights for the period

Online business continues to expand

Online GMV reached US$ 812 million during 3Q21, which reflects lower sales of 1P products (-14%) and Marketplace products (-26%), mainly due to greater mobility and the recovery of sales through physical channels.

Regional online penetration over the last 12 months reached 23%, across the region.

GMV reached US$ 3,482 million over the last 12 months, which is an increase of 40% over GMV for the comparable period.

Marketplace GMV (3P) reached US$ 157 million in 3Q21, which represents a 19% share of total online sales. Marketplace GMV (3P) reached US$ 730 million over the last twelve months.

Over 8.2 million online orders were made across the region during the quarter.

Regional

Online Penetration

12% 2019

23% 3Q21 LTM

Total GMV (US$ mn)

2.7x

$3.482

$1.310

2019

3Q21 LTM

E-commerce in Chile

GMV decreased by 21% YoY during the quarter, due to greater mobility and the recovery of sales through physical channels.

Online channel penetration in Department Stores was 35% over the third quarter 2021.

Marketplace sales sales fell 25% in the third quarter, while they grew 52% over the last 12 months.

Home Improvement continued to expand, and achieved 20% growth compared to 3Q20. This is equivalent to sales of US$ 150 million in the quarter.

GMV for Department stores reached US$ 274 million during 3Q21, a decrease of -38% YoY. Click

• Collect reached 23% of total units sold through online channels in 3Q21.

GMV Marketplace (US$ mn)

2.8x

$730

$260

2019

3Q21 LTM

The Falabella.com App captured 45% of Department Stores online sales for the quarter.

Fazil is the group's on-demand- delivery App and it continues to grow and expand its coverage. Total orders captured by the App in Chile in the third quarter of 2021 were 4x the orders for the same period last year, and visits to the App increased by 334% YoY.

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Highlights for the period

E-commerce In Peru

E-commerce In Colombia

Online sales in Peru grew 19% during 3Q21, while total GMV over the last 12 months grew by 63% YoY.

The penetration of online channels within Peru's formats rose 16% during 3Q21, to reach US$ 206 million.

Total Marketplace GMV in Peru grew by 2% in the quarter.

Home Improvement GMV grew by 100% YoY, while Department Stores GMV grew by 12% YoY.

The penetration of online channels for Supermarkets was 6%. Furthermore, the Fazil App continues to expand its coverage and order processing capacity, and order volumes grew by 3.1x compared to the same period last year

Mobile channels continued	GMV decreased by 47% due
gaining	share	in online	to	lower	consumer
sales,	with the	Falabella	dynamism after the social
App achieving a 22% share	protests in	the country,
of the format's total sales.	reaching US$ 53 million.

ONLINE GMV SUMMARY1

GROSS MERCHANDISE VOLUME (US$ million)

GMV	3Q20	% Total	3Q21	% Total	Var %	LTM
Retail (1P)	759	78%	655	81%	-14%	2.752
Deparment stores	582	60%	388	48%	-33%	1.861
Home improvement	146	15%	224	28%	53%	749
Supermarkets	30	3%	43	5%	42%	141
Marketplace (3P)	213	22%	157	19%	-26%	730
Total GMV	972	100%	812	100%	-17%	3.482

GMV by country	3Q20	% Total	3Q21	% Total	Var %	LTM
Chile	617	63%	485	60%	-21%	2.186
Perú	173	18%	206	25%	19%	727
Colombia	101	10%	53	7%	-47%	288
Others	81	8%	67	8%	-17%	281
Total GMV by country	972	100%	812	100%	-17%	3.482

• GMV figures are rounded. GMV is gross online sales including VAT using a neutral exchange rate for the Department Stores in Chile, Peru, Colombia and Argentina; Home Improvement in Chile, Peru, Argentina, Brazil and Uruguay; Supermarkets in Chile and Peru; and the Marketplace businesses.

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