Falabella S A : Earnings Presentation 4Q-2023

Earnings Call 4Q-2023

1

Cautionary Statement

These webcasts, presentations and transcripts contain "forward-looking statements," relating to, among other things, future operating and financial results, project performance, expenses, the impact of acquisitions and divestments, business strategy and any restructuring plans. These statements use words, and variations thereof, such as the future tense verbs generally, "plan", "intend", "expect", "anticipate", "estimate", "maintain", "project", "continue", "reduce" and "grow". We caution you not to rely on these forward-looking statements as the basis for any investment or divestment decisions regarding securities issued by the Company. These statements are based on assumptions and expectations of future events at the time they are made and, therefore, are subject to uncertainty.

If the underlying assumptions prove to be inaccurate, or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed in these forward-looking statements. Uncertainties relate to, among other things, the company's ability to successfully execute its planned projects and strategic plans, the possibility that expected benefits and opportunities may not materialize in the expected timeframe or at all, the impact of divestments, as well as risks related to the political and economic scenario; new regulations or more demanding regulatory changes; breach of rules and/or regulations; inability to attract and retain talent; cyber-attacks; failures or crashes of key systems; technological obsolescence; financial and market risks (exchange rate, inflation, interest rate, credit and liquidity); climate change causing natural disasters that affect operational continuity and/or increase costs in the value chain; inconsistency between ESG declarations and implementation; damage to infrastructure affecting physical security and operational continuity; conflicts with the community; accidents, illnesses or other events that impact the minimum number of people required to operate; failures in the supply chain and inventories; relationships with suppliers who fail to meet minimum standards; sale of products harmful to people's health or safety; inadequate identification and response to the preferences of our current and prospective customers. A more detailed list and description of these risks can be found in the Annual Report and in the notes to the financial statements of Falabella S.A., which are available online at the company's website (https://investors.falabella.com), as well as on the website of the Financial Market Commission (www.cmfchile.cl).

The information contained in each of these presentations pertain to the dates and for the time periods indicated therein, and the company assumes no obligation to update any of the information contained in these materials. Accordingly, you should not rely on the accuracy of any statements or other information contained in any archived webcast or video on demand as the basis for investment or divestment decisions in securities issued by the company.

All numbers in this presentation are converted to US Dollars and rounded to millions.

HIGHLIGHTS

4Q-2023

Clients

Strong leadership presence of Retailers & Malls in Latam

Falabella Retail - Revenues (US$ MM)

			-3%
1.146	726	810	769	1.108
4Q22	1Q23	2Q23	3Q23	4Q23

Supermarkets - Revenues (US$ MM)

-4%

722 584 579 600 695

4Q22 1Q23 2Q23 3Q23 4Q23

Home Improvement- Revenues (US$ MM)

			-9%
1.556	1.423	1.287	1.318	1.421

4Q22 1Q23 2Q23 3Q23 4Q23

Mallplaza - Revenues (US$ MM)

		+9%
111	114	117	126	122

4Q22 1Q23 2Q23 3Q23 4Q23

Note: Home Improvementoperation includesthe businessesin Chile, Peru, Colombia, Brazil, Mexico, Argentina and Uruguay. Mexico and Colombia do not consolidate in the financial statements.

4

Our value proposition for customers and sellers continues to gain traction

Online GMV (US$ MM)

0%

858					861
72					64
80			705		92
	616	54	611
206	51	202
	53	53
50
		166	54
	150
		172
500	363	434		504
	332
4Q22	1Q23	2Q23	3Q23	4Q23

Chile Colombia

Peru Others

Online GMV - 3P (US$ MM)

26%

25%

26%

26%

28%

		7%
		237
222
		183
156	158

4Q22 1Q23 2Q23 3Q23 4Q23

% of Online GMV

5

Our loyalty program is one of the most preferred in the region and plays a critical role in the transformation to a data-driven company

Participants (# 000')

18,569

18,735

18,626

18,681

18,635

4Q22 1Q23 2Q23 3Q23 4Q23

Redemptions (# MM)

Digital redemptions rate

29%	36%	28%	25%	30%
2,4	2,6	2,3	2,5	2,3

4Q22 1Q23 2Q23 3Q23 4Q23

6

We continue to focus efforts on our plan to strengthen our financial position…

Cash and Cash Equivalent - Non Banking (US$ mm)			Inventories (US$ mm)
				+73%							-21%
						1.229		2.225	2.052	1.934	1.946	1.754
					741
712	598	460
	4Q22	1Q23	2Q23	3Q23	4Q23	4Q22	1Q23	2Q23	3Q23	4Q23

SG&A (US$ mm)

-8%

1.093 916 914 941 1.009

4Q22 1Q23 2Q23 3Q23 4Q23

7

Summary Financials (US$ MM)

	4Q22	% revenues	4Q23	% revenues	Var (%)
Total sales
Total sales	3.869		3.668		-5%
GMV Online	858		861		0%
GMV own products (1P)	636		624		-2%
GMV third-party products (3P)	222		237		7%
Total sales of physical stores	3.011		2.807		-7%
Financial Results
Non-Banking Revenue	3.200	84,9%	3.026	85,0%	-5%
Financial Services Revenue	567	15,1%	533	15,0%	-6%
Total Revenue	3.768	100%	3.559	100%	-6%
Gross profit	1.219	32,4%	1.206	33,9%	-1%
SG&A expenses	(1.093)	-29,0%	(1.009)	-28,4%	-8%
Operational income	126	3,3%	197	5,5%	56%
EBITDA	256	6,8%	333	9,4%	30%
Non-operating profit	(86)	-2,3%	(46)	-1,3%	-47%
Net (Loss) Income	9	0,2%	80	2,3%	824%
Balance Sheet
Cash (non-banking)	712		1.229		73%
Gross Loan Book	7.705		7.285		-5%
Total Net Debt (Exc. Banking)	4.184		3.662		-12%

Note: Total sales correspond to the total value of the merchandise sold, including our own (1P) and third-party (3P) products, through our omnichannel platform (physical and online stores). Includes value added taxes. Calculated with a

neutral exchangerate.8

.

Financial Position

Debt By Creditor	Debt By Maturity	Net Financial Debt/EBITDA (times)	Net Leverage (times)
w/o Banking Operations	w/o Banking Operations
w/o Banking Operations	w/o Banking Operations
				Dec-23		Dec-23		1.0
				6.5
	5%
23%
				Dec-22	6.3	Dec-22		1.1

Bonds	77%		Short Term	95%
Banks Facilities		Long Term	Debt Amortization Profile	$3,125
				(US$ mn)

Total debt (exc. Banks) reached US$ 5,211 million

$283	$600	$533	$533
			$137
2024	2025	2026	2027	2028	2029+

9

… and we announce our investment plan for 2024

CAPEX Plan (US$ million)

Store Openings in 2024

-24% vs plan of 2023

US$200					Supermarket
investment in		$270		20%
Technology
		$508		#10
		$38		Department Store 10%
	$39
					70%
$161
					Home Improvement
Opex	Capex	Logistics	Opening	2024		& IKEA
TechnologyTechnology		and	Investment
			remodeling

10