EARNINGSPRESENTATION Q3’16

November 2016

1

2

32

Q3’16 recent events

Q3’16 CONSOLIDATEDRESULTS

Q3’16 RESULTSBY FORMAT

1

3

Q3’16 Recent events

4

Q3’16 recent events

1 Management Change

Market Making

Indecopi’s Ruling on Inkafarma

2

3

2

5

Q3’16CONSOLIDATEDRESULTS

Highlights Revenues

Double digit growth in Adj. EBITDA and Net Income

• Revenues: +7.2% vs Q3’15

• Adj. EBITDA: +15.1% vs Q3’15; Margin: 10.9% vs 10.2%

• Net Income: +149.7% vs Q3’15; Margin: 2.7% vs 1.2%

• Mark to-market gain of S/4.4 mm and net exchange lossof S/19.0 mm

• Net income excluding FX and mark-to-market was S/59mm, +42.4% vs Q3’15

Adj. EBITDA Net Income

6

5,3054,930

1,7941,674

+7.6%

+7.2%

YTD’16YTD’15Q3’16Q3’15

Margin 10.2% 10.9% 10.2% Margin 1.2% 2.7% 0.9%

561503

196170

Q3’15 YTD’15Q3’16 YTD’16

+11.5%

+15.1%

176

4549

19

+149.7%

YTD’16

+288.1%

Q3’15 Q3’16 YTD’15

3.3%10.6%

Gross

Margin30.0% 31.1% 30.0% 30.7%

Q3’16 consolidated financial resultsMillion Soles (S/ mm)

+7.6%

7.1%

YTD’16

5,001

61%

39%

YTD’15

4,647

63%

37%

Q3’16

1,689

60%

40%

Q3’15

1,578

62%

38%

Margin: 6.7% 7.2% 6.7% 7.1%

Net Rental Margin:

81.3% 83.1% 82.5% 82.8%

Supermarkets

Pharmacies

Revenues Adj. EBITDA

7

357

YTD’16

+14.7%

16.2%

50%

50%

YTD’15

311

52%

48%

Q3’16

122

48%

52%

Q3’15

105

51%

49%

333317

114108

Q3’16 YTD’15 YTD’16

5.9%

+5.0%

Q3’15

211196

7467

Q3’16 YTD’15Q3’15

+7.6%

YTD’16

10.3%

Q3’16 Revenue and ebitda breakdownMillion Soles (S/ mm)

Gross Margin:

27.6% 28.8% 27.8% 28.6%

Gross Margin:

70.8% 70.3% 69.4% 69.4%

Net Income

Net Income excluding after-tax FX and mark-to-market gains:

176

4549

19

+288.1%

+149.7%

YTD’16YTD’15Q3’16Q3’15

Net Margin 1.2% 2.7%

Net Margin 2.5% 3.3%

0.9%

2.6%

3.3%

3.2%

169

127

5941

YTD’15Q3’16Q3’15

+32.8%

+42.4%

YTD’16

• EBITDA growth of 15.1%

• Lower financial expenses

• Higher mark-to-market gains: S/4.4 mm in Q3’16vs. S/3.7 mm in Q3’15

• FX effect: FX loss of S/19 mm in Q3’16 vs FX lossof S/35 mm in Q3’15

8

Net Income Breakdown

26

16 1949

19

Net Income Q3’16

OtherLower FX Effect

Higher Mark to Market

1

Lower Financial Expenses

6

EBITDA Growth

Net Income Q3’15

Consolidated net incomeMillion Soles (S/ mm)

3

9

Q3’16RESULTS BYformat

SUPERMARKETS RESULTS BY format

10

SSS growth of 0.0%

+15k sqm of sales area (+5.6%) since Q3’15

Remodeled and improved layouts in 2 stores (3 stores since Q3’15)

Gross margin improved 94 bps• Higher rebates and logistic revenues• Higher rental revenues

Other operating income includes S/4.5 mm of recurring incomefrom the JV with Financiera Oh!

Non-recurring income of S/1.6 mm from sale of unused property

EBITDA margin improved 34 bps

S/. mm Q3'16 Q3'15 Var %

Revenues 1,018 984 3.5%

Gross Profit 269 251 7.3%

EBITDA 59 54 9.8%

Gross Mg 26.5% 25.5% 94 bps

EBITDA Mg 5.8% 5.5% 34 bps

PHARMACIES

SSS growth of 7.2%

Opened 51 pharmacies and closed 3 (106 additional pharmaciessince Q3’15, +12.1%)

Gross margin improved 131 bps• Increased penetration of high margin products• Higher rebates from suppliers

EBITDA margin improved 80 bps• Logistic efficiencies• Store employee efficiencies• Higher rental expenses due to FX effect and new stores

11

RESULTS BY format

S/. mm Q3'16 Q3'15 Var %

Revenues 675 596 13.1%

Gross Profit 220 187 17.9%

EBITDA 64 52 23.6%

Gross Mg 32.6% 31.3% 131 bps

EBITDA Mg 9.4% 8.7% 80 bps

12

Inkafarma: new logo

Renovate and modernize InkaFarma’s image after 20 years

Maintained identity and colors with which customers identify

Before After

SHOPPING MALLS

SSS growth of 4.4%

+8k sqm of GLA (+1.3% since Q3’15)• Mall expansions in Trujillo, Huancayo and Piura

Maintained high occupancy rates of ~96%

Adjusted EBITDA growth of 10.3% mainly explained by growth inReal Plaza Salaverry (+S/1.9 mm), Chiclayo (+S/1.0 mm), Juliaca(+S/0.9 mm) and mall expansions

Mark-to-market income of S/5.2 mm in Q3’16 vs S/4.5 mm inQ3’15

13

RESULTS BY format

S/. mm Q3'16 Q3'15 Var %

Revenues 114 108 5.9%

Gross Profit 80 77 5.1%

Adj. EBITDA 74 67 10.3%

Gross Mg 70.3% 70.8% -51 bps

Net Rental Mg 83.1% 81.3% 179 bps

Quarterly Openings and SSS by Segment

SupermarketsSales Area (‘000 sqm)

PharmaciesNo Stores

Shopping MallsGLA (‘000 sqm)

Pharmacies

2014: 4.4%2015: 3.7%YTD’16: 1.3%

Openings Same Store Sales (SSS)

14

290 289 288 290 275 273 273

Q2’16Q1’16Q4’15Q3’15Q2’15Q1’15 Q3’16

No of Spmkts 100 100 100 104 104

No of Mass 2 3 12 19 23

980 932 922 921 874 848 838

Q3’15Q2’15Q1’15 Q2’16Q1’16Q4’15 Q3’16

No of Malls

589 589 582 582 581 572 558

Q4’15Q3’15Q2’15 Q2’16Q1’16Q1’15 Q3’16

17 18 18 18 18

Q2’16

0.6%

Q1’16

3.4%

Q4’15

1.5%

Q3’15

4.3%

Q2’15

4.1%

Q1’15

5.6%

Q3’16

0.0%

Q1’16

9.0%

Q4’15

6.4%

Q2’16

5.1%5.7%

Q1’15

6.4%

Q3’15

2.1%

Q2’15

7.2%

Q3’16

104

25

18

Supermarkets

Shopping Malls

3.7%

Q2’15

2.4%

Q1’15 Q4’15

6.4%

Q3’15

5.6% 6.3%

Q1’16

8.2%

Q2’16 Q3’16

4.4%

2014: 8.5%2015: 5.1%YTD’16: 7.1%

2014: 2.6%2015: 4.7%YTD’16: 6.4%

Note/ Shopping Malls’ SSS include anchor stores

104

33

18

15

Free Cash Flow LTM Q3’16: S/321 mm

Cash-Flow Breakdown

87

161

79

197

105

134

74

Q3’16Q2’16Q1’16Q4’15Q3’15Q2’15Q1’15

2015: S/510 mm

Consolidated Capex

275

235

112 477

Starting Cash

Balance Dec-15

Ending Cash

Balance Q3’16

Other Non-Operating Investing Activities

-80

Financial Expenses

-142

Debt Increase

CAPEX

-327

Operating Cash Flow

YTD Q3’16 : S/327 mm

Capex and cash-flow breakdownMillion Soles (S/ mm)

Consolidated Financial Debt1/ USD Exposure

16

28%38% 37%

72%

23% 23%

39% 40%

dic-14 dic-15 sep-16

PENUSDHedge

Debt

Cash

Net Debt

1,668

1,125

542

1,722

324

1,398

2,446

285

2,160

3.5x3.5x3.6x3.6x

4.0x

3.6x

4.0x

3.2x

3.6x

2.9x

1.3x

2.9x3.2x3.2x

LTM Q3’16

LTM Q2’16

LTM Q1’16

2013 20142012 2015

Debt/EBITDANet Debt/EBITDA

2,670

325

2,344

1/ Since 2015, ratios are adjusted for positive hedge effect

• +S/123 mm debt in YTD Q3’16 vs EoY 2015, explained by:

• +S/112 mm from debt increase• -S/7 mm from appreciation of FX• +S/7 mm from new Call Spread financing• +S/11 mm from 2021 bond structuring costs

2,671

262

2,409

2,694

265

2,429

Consolidated financial debtMillion Soles (S/ mm)

2,792

435

2,357

17

New 3-year financing

Amount US$30 million

Bank Loan

Term 3 years - Bullet

RateYear 1: 2.54%

Year 2-3: 2.64%

Call Spread

US$30 million

Due 2021(Bond maturity)

1.2%

Call Spread S/3.379 – S/3.75

Use of ProceedsGeneral corporate

purposes

Total Consolidated Debt: S/2,792 mm

Debt / EBITDA: 3.5xNet 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

3.0x2.9x3.0x3.1x3.2x

3.0x2.9x

2.6x2.8x

2.4x

2.0x

2.4x2.6x

2.7x

LTM

Q3’16

LTM

Q2’16

LTM

Q1’16

2015201420132012

Debt/EBITDANet Debt/EBITDA

4.3x4.4x4.5x4.4x

5.5x5.4x

8.2x

4.0x

4.9x

4.7x

0.4x

4.0x4.1x3.7x

LTM

Q1’16

201420132012 2015 LTM

Q3’16

LTM

Q2’16

18

1,422

202

1,220

1,248

128

1,120

1,420

138

1,282

1,251

130

1,121

1/ Since 2015, ratios are adjusted for positive hedge effect

1,427

150

1,276

1,267

119

1,148

Debt by segmentMillion Soles (S/ mm)

1,519

273

1,245

1,273

168

1,105

EARNINGSPRESENTATION Q3’16

November 2016

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.

This presentation may include 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.

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