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CORPORATEPRESENTATIONAugust 2017
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
11,585
1,149
625,776 sqm
409
315,774 sqm
14,223
208
Supermarkets Pharmacies Shopping Malls
Adjusted EBITDA 70 8788
Revenues 805 1411,340 2,271
242
LTM Q2’17
(US$ millions)
58.6% 35.2% 6.2%
36.0% 28.5% 35.5%
% of Revenues
% of Adj. EBITDA
19
6.5% 8.6% 80.9%Adj. EBITDA Margin1/10.6%
Note: FX of 3.321 (average LTM Q2’17)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): 315,774
62% of stores are owned1/
(7)
(1)
(5)
(3)
(75)
(3)
(2)
(1)(1)
(2)
(2)
(2)
(2)
(1)(1)
(101)
107 Spmkts
101 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
Note: As of March 20171/ Owned by Supermercados Peruanos or through a related party
Shopping Malls
First mover in 6 out of the 12 cities
Total GLA (sqm): 625,776
Piura (2)
Chiclayo
Trujillo
Arequipa
Juliaca
Chimbote
Lima (8)
Cajamarca
Cusco
Huánuco
Huancayo
Only modern shopping mall
19 Malls
11
(9)
(7)(39)
(23)
(21)
(24)(15)
(8)(20)(40)
(37)
(5)
(9)
(67)
(33)
(47)
(17)
(51)
(483)
(76)
(52)
(4)
(3)
(59)
1,149 Stores
Openings and SSS by Segment
Same Store Sales (SSS)Openings
316 306 304 290 270 249 225
201520142013 Q1’1720162012 Q2’17
SupermarketsSales Area (‘000 sqm)
No Mass 4 2 2 19
PharmaciesNo Stores
Shopping MallsGLA (‘000 sqm)
No Malls 13 15 17
Supermarkets
Q1’17
7.9%
2016
1.2%
2015
3.7%
2014
4.4%
2013
0.4%
2012
3.2%
5.8%
Q2’17
Pharmacies
18
12
1,149 1,125 1,107 921 837 725
580
201420132012 Q1’1720162015 Q2’17
626 626 626 582 553 399
286
Q1’1720162015201420132012 Q2’17
2013
2.7%
2012 2015
5.1%
2014
8.5%
-3.3%
2016
5.9%
Q1’17
13.6%
Q2’17
-5.6%
No Spmkts 82 96 99 104
Shopping Malls
2012
9.9%
5.2%
2015
4.7%
Q1’17
3.1%
20162014
2.6%
2013
5.2% 4.6%
Q2’17
19
59
106
Note/ Shopping Malls’ SSS include anchor stores
70
106
19
101
107
19
YTD’17: 6.8%
YTD’17: -4.5%
YTD’17: 3.9%
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 Q2’17 S/4,450 mm
2,000 – 5,000
500 – 2,000
900 – 1,200
69 / 28
29 / 6
9 / 0
Supermarkets14%
High-end6%
Compact Hypermarkets
80%
Figures as of the las twelve months June2017*Supermarkets consider revenues from Mass format
13
14
Piloting New Discount Model
• Piloting a low CAPEX, low cost, every day low price
format to capture untapped demand and penetrate
traditional trade
• 101 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
52%
48%
Total Market
35%
33%
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 Q2’17Source: 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%
2016 Q1’17
96%
2015
97%
2014
94%
2013
93%
2012
92%
Q2’17
96%
16
Nationwide premium portfolio of 19 locations
626k sqm of GLA, an expansion of 9% 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
3,7793,511
1,8651,746
6.8%
YTD’17YTD’16Q2’17Q2’16
+7.6%
121128
48
64
-25.0%
YTD’17YTD’16Q2’17Q2’16
-5.5%
375365
187185
0.7%
YTD’17YTD’16Q2’17Q2’16
+2.7%
Margin 10.6% 10.0% Margin 3.6% 2.6%
18
10.4% 3.6%
Gross Margin
31.0% 31.5%30.8% 30.3%
9.9% 3.2%
High single digit growth in Revenues, despite a slowmacroeconomic environment:
Supermarkets: SSS above market growth
Pharmacies: Slow growth in revenues due to slowermarket and cannibalization effect
Shopping Malls: Revenues growing above inflation
Financial Results by FormatMillion Soles (S/ mm)
0.4%
YTD’17
239
56%
44%
YTD’16
235
51%
49%
Q2’17
117
54%
46%
Q2’16
116
48%
52%
+1.8%
YTD’17
3,570
63%
37%
YTD’16
3,311
62%
38%
Q2’17
1,760
62%
38%
Q2’16
1,646
61%
39%
6.9%
+7.8%
Margin:
Net Rental Margin:
83.1% 81.0%
230219
118111
6.6%
YTD’17YTD’16Q2’17Q2’16
+5.1%
138137
7171
0.9%
YTD’17YTD’16Q2’17Q2’16
+0.9%
Spmkts
Pharmacies
Revenues Adj. EBITDA
7.1% 6.6% 7.1%
19
Gross Margin
28.9% 28.4%29.0%
Gross Margin
69.4% 69.0%65.8% 82.6%
28.4%
65.6%
6.7%
80.2%
InRetail Consumer - Financial ResultsMillion Soles (S/ mm)
Revenues Adj. EBITDA
2,2532,044
1,1011,005
9.5%
YTD’17YTD’16Q2’17Q2’16
+10.2%
20
134120
6356
14.1%
YTD’17YTD’16Q2’17Q2’16
+12.1%
1,3241,273
661644
Q2’16
2.7%
YTD’17YTD’16Q2’17
+3.9%
106116
5461
-11.6%
YTD’17YTD’16Q2’17Q2’16
-8.9%
Margin: 5.5% 5.8% 5.9%Gross
Margin26.6% 26.2%26.4%
Margin: 9.5% 8.2% 9.1%Gross
Margin32.7% 32.2%33.6%
26.0%
32.9%
6.0%
8.0%
Su
pe
rma
rke
tsP
ha
rma
cie
s
Consolidated Net IncomeMillion Soles (S/ mm)
2121
Net Income
121128
4864
-5.5%
-25.0%
YTD’17YTD’16Q2’17Q2’16
Net Margin 3.6% 2.6%
Net Margin 3.3% 2.6%
3.6%
3.1%
107110
4857
-2.9%
-15.5%
YTD’17YTD’16Q2’17Q2’16
Net Income Breakdown
Net Income excluding FX and mark-to-market
3.2%
2.8%
48
64
Net Income Q2’16
Net Income Q2’17
Higher D&A
-2
FX
-9
Higher Mark to Market
-1
Lower Financial Expenses
3
EBITDA Growth
1
Higher Tax
-9
Net Income Q2’17: -15.5%
+0.7% Adjusted EBITDA
-5.6% Financial Expenses, net
+24.4% Taxes
Consolidated Capex and Free Cash FlowMillion Soles (S/ mm)
22
CAPEX Cash-Flow Breakdown
Free Cash Flow LTM Q2’17: S/ 301 mm
130
119
195
87
161
79
Q1’17Q4’16Q3’16Q2’16Q1’16 Q2’17
166
244 98
198
Ending Cash
Balance Q2’17
Other Non-Operating Investing Activities
-47
Financial Expenses
-77
Debt Increase
CAPEX
-249
Operating Cash Flow
Starting Cash
Balance 2017
2016: S/ 523 mm YTD’17: S/ 249 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
28%38% 35% 38%
72%
23%23%
39% 42% 40%
22%
jun-17dic-16dic-15dic-14
PENUSDHedge
2,659
432
2,227
2,671
262
2,429
2,711
330
2,381
Debt
Cash
Net Debt
1/ Since 2015, ratios are adjusted for positive hedge effect
3.4x3.5x
3.3x
3.6x
4.0x
3.6x
4.0x
3.6x
2.9x
1.3x
2.8x
3.2x3.0x
3.2x
LTM
Q2’17
LTM
Q2’16
20162015201420132012
Debt/EBITDANet Debt/EBITDA
Debt by SegmentMillion Soles (S/ mm)
24
Total Consolidated Debt: S/2,711 mm
Debt / EBITDA: 3.4xNet Debt / EBITDA: 3.0x
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
2.9x2.9x2.7x
3.1x3.2x
3.0x2.9x 2.8x
2.4x
2.0x
2.2x
2.6x 2.6x2.6x
2012 LTM
Q2’17
LTM
Q2’16
201620152013 2014
Debt/EBITDANet Debt/EBITDA
1,422
202
1,220
1,248
128
1,120
4.2x4.4x4.3x4.4x
5.5x5.4x
8.2x
3.7x4.0x
4.9x4.7x
0.4x
3.5x4.0x
2015201420132012 2016 LTM
Q2’16
LTM
Q2’17
1,402
277
1,125
1,257
162
1,095
1,251
130
1,121
1,420
138
1,282
1,501
137
1,364
1,210
197
1,013
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% 21%
81%
26% 25% 26%
55% 53% 54%
jun-17dic-16dic-15dic-14
36%
55%47% 52%
64% 21%22%
24% 31% 28%
19%
dic-16 jun-17dic-15dic-14
USD Exposure Debt Maturity
PENUSDHedge
PENUSDHedge
201132
97
124
59
52
50
168
2020
220
2019
15612
2021+
953
903
2018
255
2017
213
Debt MaturityInterests
50 4645
84 79
77
1822
2021+
1,205
1,076
129
2020
95
2019
125
2018
134
2017
67
Debt MaturityInterests
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% 83%
7% 8% 10% 9% 10%10% 9% 11% 14% 8% 9% 9%10% 10% 10% 10% 9% 12% 14% 8% 9% 7%
9% 12% 14% 11% 10% 7%4%
3%3%3%5%
Q1’17
5%
Q4’16
6%
Q3’16
5%
Q2’16Q1’16
5%
Q4’15
6%
Q3’15
4%
Q2’15Q1’15Q4’14Q3’14
4%
Q2’14
6%
Q1’14 Q2’17
5%
Mature2-3 years1-2 years0-1 years
52% 51% 51% 48% 49% 51% 54% 59% 62% 64% 65% 62% 61%
8% 11% 18% 21% 21% 20% 16% 14% 13% 12%10%
25% 24% 23% 18% 15% 15% 14% 13% 13% 12% 11%9% 9%
18% 17% 15% 15% 15% 14% 12% 11% 11% 11% 12%18% 19%
62%
10%11%
8%
20%
Q3’15Q2’15Q1’15Q4’14Q3’14 Q1’17Q2’14Q1’14
6%
Q4’16Q3’16Q2’16Q1’16Q4’15 Q2’17
2-3 years1-2 years0-1 years Mature
30
Cash Cycle
Pharmacies
Supermarkets
1131
1132323244
-30-29
-43
-29-30-30-39
-31-36
-31-35-32-39-38
100
80
60
0
-20
-40
-60
93
Q4’14
52
90
Q3’14
59
93
Q2’14
56
99
52
94 92
61
93
Q4’15
52
93
Q3’15Q1’14
59
Q2’15
54
93
Q1’15
59
Q1’17
55
86
Q4’16
53
99
Q3’16
60
90
Q2’16
57
88
Q1’16 Q2’17
91
61
CycleInventory TurnoverDays Acc PayablesDays Acc Receivables
3344
434333344
3
-29
-23-26-24-24-25-27-30-32-27-19-17-18
-10
80
140
120
100
0
-20
-40
Q2’16
83
111116
Q1’17
84
110
Q4’16Q4’15
88
120
Q3’15
95
125
Q3’16
88
112
Q4’14
82
104
Q3’14
87
107
Q2’14
103
126
Q1’14
103
116
Q1’16
84
112
83
116
Q2’15
78
112
Q1’15
81
Q2’17
121
89
Inventory TurnoverDays Acc PayablesDays Acc Receivables 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.
In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Therefore, our actual results could differ substantially from those anticipated in our forward-
looking statements.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the
exercise of their own judgment. We and our affiliates, agents, directors, employees and advisors accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material.
This material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it
necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information in this material.
