MIRA INFORM REPORT

Report Date :

11.06.2012

IDENTIFICATION DETAILS

Name :	SAGA FALABELLA S.A.
Registered Office :	Paseo de la República 3220, Urb. Jardín, San Isidro, Lima,27
Country :	Peru
Financials (as on) :	31.12.2011
Date of Incorporation :	11.11.1953
Legal Form :	Joint-Stock Company
Line of Business :	Engaged in import and trade of general merchandise under the department store format, such as appliances, toiletries, light hardware, school supplies, furniture, health, clothing and footwear (for women, men and children), among others.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Peru	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

IDENTIFICATION

CORRECT COMPANY NAME

SAGA FALABELLA S.A.

TRADE NAME

SAGA FALABELLA

TAXPAYER REGISTRATION

RUC 20100128056

MAIN ADDRESS

Paseo de la República 3220, Urb. Jardín, San Isidro,

POSTAL CODE

Lima,27

PROVINCE / DEPARTAMENT

Lima

STATE / REGION

Lima

COUNTRY

PERU

TELEPHONE

(511) 4420500 - 4410366 - 6161000

WEB

www.sagafalabella.com.pe

COMMENTS

The COMPLETE address is given in the identification field.
 
No lawsuits in INDECOPI were found.

SUMMARY
Date of foundation	1953
Capital stock	S/.99,275,445.= Nuevos Soles
Shareholders' equity	534,946,000.00 Nuevos Soles (31DEC2011)
Annual revenues	US$ 819,615,185.19 Nuevos Soles (31DEC2011)
Profits (loss)	144,586,000.00 Nuevos Soles (31DEC2011)
permanent employees	7,311
Chief Executive	ROCA MENDENHALL, JUAN XAVIER
Disposition	Report totally prepared by outside sources.
Payments policy	Usually to terms/good
Credit (**)	Risk is Minimal, Solvent, Satisfactory Financial Situation.

LEGAL BACKGROUNDS

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	11NOV1953
STARTING DATE	11/11/1953
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Ricardo Fernandini Arana
DURATION	Perpetual
REGISTRATION	Vol 136, Sheet 229, Leaf 39, Entry 1; Lic 001357
CURRENT PAID-IN CAPITAL	S/.99,275,445.= Nuevos Soles
LAST CAPITAL INCREASE	10/14/2005
SHAREHOLDERS EQUITY	534,946,000.00 Nuevos Soles (31DEC2011)
CLASS OF SHARES	Common
LISTED AT STOCK EXCHANGE	Yes
SHARE VALUE	S/.1.= Nuevo Sol
CURRENT EXCHANGE RATE (US$)	S/.2.71 per 1 USD
COMMENTS	Subject was incorporated on 11/11/1953 under the name of SEARS ROEBUCK DEL PERU S.A. On 03/16/1984, it changed its name to SOCIEDAD ANDINA DE LOS GRANDES ALMACENES S.A. In 1995, CORPORACION FINANCIERA CHILENA FALABELLA acquired SOCIEDAD ANDINA DE LOS GRANDES ALMACENES S.A. Subsequently, it took over by merger the following companies: FALADOS S.A. (01/02/1995), FALATRES S.A. (11/25/1996), SERVICIOS INMOBILIARIOS BVM S.A. (08/18/1998). On 09/15/1999, SOCIEDAD ANDINA DE LOS GRANDES ALMACENES S.A. E.M.A., adopted the current name: SAGA FALABELLA S.A. Since 2001, Saga Falabella becomes the first chain of department stores in going for inner cities. The expansion outside of Lima began in the north of the country with openings in Trujillo, Chiclayo and Piura. Later would add locations in Arequipa, Cajamarca and Ica. On 06/01/2005 and as published on 06/02/2005, subject span off assets, being the beneficiary the company INVERSIONES Y SERVICIOS FALABELLA PERU S.A. According to Board agreement dated 03/30/2008, the subject absorbed in a merger transaction the firm MANUFACTURAS DEL VESTIR S.A.C., which was published on 07/10/2008. According to "Superintendencia Nacional de Administracion Tributaria - SUNAT" (National Superintendency of Tax Administration), Subject was reported the following information: - Regime of Withholding Agents for taxes (R.S.037-2002) as from 01/06/2002 - Regime of Good Taxpayers (Leg.D.912) as from 10/01/2002 in accordance with Resolution No.011050001484

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
CUNEO SOLARI, JUAN BAUTISTA	Chairman of BoD
BENAVIDES FELIU, JUAN PABLO	Vice President
SOMOZA GARCIA, GONZALO	Executive Vice President
CASTAGNOLA ZUÑIGA, GIANFRANCO MAXIMO DANTE	Director
REY BUSTAMANTE, ALONSO JOSE	Director
MONTERO SCHEPELER, JUAN PABLO	Director
ROCA MENDENHALL, DIEGO ANDRES	Director
ROCA MENDENHALL, JUAN XAVIER	Executive Director		16.02.95
HASHIMOTO KURODA, CESAR ALBERTO HIROSHI	Systems Manager		18.05.95
FLORES GORRITTI, FELIPE OSCAR MARTIN	Human Resources Manager		14.03.07
CONTRERAS RIVAS, JOSE ANTONIO	Real Estate Develop. Mgr.		01.05.96
MUÑOZ DEZA, EDMUNDO	Commercial Manager
ZIMMERMANN FRANCO, ALEX	Business Manager
VIDAL OLCESE, JAVIER	Real Estate Projects Mgr.
SAMALVIDES MEZA DE AMAYO, NANCY ZOILA	Corp. Account. Manager		18.05.95
ALCALDE ALCALDE, JULIO JOSE	Finance Manager
RIVERA ROMERO, MIRIAHAN LILIANA	Internal Control Manager
ZIMMERMANN MUJICA, PABLO JOSE	Manager		14.03.07
CARPIO GERBI, FERNANDO JESUS	Corporate Controller
FALABELLA PERU S.A.A.	Parent Co.	94.49%

WHO IS WHO?

CUNEO SOLARI, JUAN BAUTISTA

NATIONALITY

Chilean

ID

CI ON-87796

CIVIL STATUS

Married

PROFESSION

Commercial Engineer

TAX ID

3.066.418-3

BACKGROUND INFORMATION

He is a Commercial Engineer, graduated from the Universidad Católica de Chile (Catholic University of Chile).
Once graduated from college and joined Falabella in 1981 assumed the general management of the company. Since 1995, he served as executive vice president of the company. In his business life has been highlighted as founder of several companies, as Confecciones Italmod and Viña Casas del Bosque, among others. He has also played a major role as director of companies such as Banco de Chile and Chile Racecourse Company. 
 
Vice President of SACI Falabella. Director of Saga Falabella SA since 2001 and Chairman since March 2007. 

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
FALABELLA RETAIL S.A.	Vice President	77261280K	CHILE
S.A.C.I. FALABELLA	Vice President	907490009	CHILE
SODIMAC S.A.	Vice President	96792430K	CHILE
FALABELLA DE COLOMBIA S.A.	Director	9000174478	COLOMBIA

BENAVIDES FELIU, JUAN PABLO

NATIONALITY

Chilean

D.O.B.

121957

PROFESSION

Commercial Engineer

TAX ID

5.633.221-9

BACKGROUND INFORMATION

Commercial engineer and a university graduate in audit.
 
Corporate General Manager of SACI Falabella (Chile) since 2004, Vice Chairman of the Board of Directors of SAGA FALABELLA S.A. since November 2004. He was the General Manager of Promotora CMR Falabella in Chile.
 
Juan Benavides Feliu (27/12/1957) is a Chilean commercial engineer and businessman. He is now the corporate general manager of the minority holding Falabella.
 
He is one of the nine children that the married couple comprised of Maria Feliu Segovia, deceased in 1968, and Rene Benavides del Villar, who was a member of the parliament of the Republic in 1950's representing the Partido Agrario Laborista (Labor-Farm Party) and a general manager of Minera Tamaya and Association of Exporters.
 
He studied in the school Colegio del Verbo Divino, and later, as a commercial engineer in the Pontificial Catholic University, both in the Chilean capital.
 
Because of widowhood of his father and the size of his family, he should work since he was very young. He cooperated in the family plastic company Mapoleno that his uncle Andres Feliu run since his first years of higher education.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
SHEARVAN CORPORATE S.A.	Manager		BRITISH VIRGIN ISLANDS
HIPERMERCADOS TOTTUS S.A.		20508565934	PERU
S.A.C.I. FALABELLA	General Manager	907490009	CHILE

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
FALABELLA RETAIL S.A.	Corp. General Manager	CHILE	2011

SOMOZA GARCIA, GONZALO

NATIONALITY

Chilean

D.O.B.

12FEB1969

ID

CI N123936

TAX ID

22.051.269-K

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
SODIMAC PERU S.A.	Legal Representative	20389230724	PERU
OPEN PLAZA S.A.		20266409461	PERU

CASTAGNOLA ZUÑIGA, GIANFRANCO MAXIMO DANTE

NATIONALITY

Peruvian

D.O.B.

051960

ID

DNI 08275724

BACKGROUND INFORMATION

Bachelor's Degree in Economics from University of the Pacific, with Master's Degree in Economics from Hardvard University. Managing Director of Apoyo Consultoría.Previously, he was a director of Financiera CMR (currently Banco Falabella Perú S.A.). He has been a member of the board of directors since December 2006.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
APOYO CONSULTORIA S.A.C.	Executive President	20260496281	PERU
CEMENTOS PACASMAYO S.A.A.	Director	20419387658	PERU
AUSTRAL GROUP S.A.A.	Director	20338054115	PERU

REY BUSTAMANTE, ALONSO JOSE

NATIONALITY

Peruvian

D.O.B.

12FEB1963

ID

DNI 08251044

CIVIL STATUS

Married to Claudia Dolores Nassaro Barreda

PROFESSION

Lawyer

TAX ID

10082510449

BACKGROUND INFORMATION

His Tax ID No.10082510449 was issued on 06/03/1993 to be engaged as an Individual without business to legal activities. Tax domicile: Av. Víctor Andrés Belaunde 147, Int. 1201, San Isidro, Lima/Lima 27.
 
Lawyer (CAL 16198), graduated from Pontifical Catholic University of Peru, with postgraduate studies in University of Illinois, USA. Now, partner of Estudio Payet, Rey, Cauvi Abogados (law firm).

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
HOTELES ESTELAR DEL PERU S.A.C.	General Manager		PERU
AGROINDUSTRIAS MACACONA S.R.L.	Shareholder	20509277843	PERU
SOCIEDAD AGRICOLA LARAPINTA S.A.C.	Shareholder	20517382419	PERU
VIVIENDAS DEL PERU S.A.C.	Shareholder	20512691529	PERU
GOURMET FARMS PERU S.R.L.	Legal Representative	20503801818	PERU
DSI PERU S.A.C.	Shareholder	20518256751	PERU
FISHERIES S.A.	Legal Representative		PERU
TOMMA S.A.C.	Legal Representative		PERU
CONTUGAS S.A.C.	Legal Representative		PERU
INMOBILIARIA JAP S.A.C.	General Manager		PERU
ALIMENTOS PRACTICOS DEL PERU S.A.C.	Legal Representative	20492839541	PERU
ISONOR TRANSMISION S.A.C.	General Manager		PERU
LAYHER PERU S.A.C.	General Manager		PERU
LCC DISEÑO Y SERVICIOS DE RED PERU S.R.L.	Legal Representative		PERU
COMERCIAL QUILLIN S.A.C.	Legal Representative	20524801591	PERU
MANDOR VERDE S.A.C.	Legal Representative		PERU
FLUITEK PERU S.A.C.	Legal Representative		PERU
REXEL PERU S.A.C.	General Manager		PERU

MONTERO SCHEPELER, JUAN PABLO

NATIONALITY

Chilean

ID

CI ON-87796

PROFESSION

Civil Engineer

TAX ID

9357959-3

BACKGROUND INFORMATION

Corporate General Manager of Department Stores of SACI Falabella.
 
ID Card (Argentina) ON-87796

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
FALABELLA S.A.	Director	30655725829	ARGENTINA
FALABELLA DE COLOMBIA S.A.	Alternate Director	9000174478	COLOMBIA
FALABELLA RETAIL S.A.	Corp. General Manager	77261280K	CHILE

ROCA MENDENHALL, DIEGO ANDRES

NATIONALITY

Peruvian

PROFESSION

Economist

BACKGROUND INFORMATION

Economist, graduated from Trinity College, Connecticut, USA. He studied an Advanced Business Management Program in Corporate Finance at ESAN, Lima, Peru. He is now a Director and General Manager of Franquicias Alimentarias del Perú, a Director of Saga Falabella S.A. since March 2007.

ROCA MENDENHALL, JUAN XAVIER

NATIONALITY

American

D.O.B.

081952

ID

C.E. N107784

CIVIL STATUS

Married to Lina Mora Soto

DOMICILE

Los Portales 130, Urb. Rinconada Baja, La Molina, Lima

PROFESSION

Economist

BACKGROUND INFORMATION

Economist, graduated from Amherst College, MBA Harvard, President of Saga until 1994. He is now General Manager, a Director of Saga Falabella S.A., Banco Falabella Perú S.A., Malls Perú S.A., Hipermercados Tottus S.A. Sodimac S.A., and Corredora de Seguros Falabella S.A..
 
He is referred to legally represent the following companies:
- FALACUATRO S.A. (RUC 20269695227)
- HIPERMERCADOS TOTTUS S.A. (RUC 20508565934)
- SAGA FALABELLA S.A. (RUC 20100128056)
- TAKOL S.A.C. (RUC 20414770917)
- VIAJES FALABELLA S.A. (RUC 20471786811)

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
OPEN PLAZA S.A.		20266409461	PERU
S.A.C.I. FALABELLA	Falabella Peru Manager	907490009	CHILE

HASHIMOTO KURODA, CESAR ALBERTO HIROSHI

NATIONALITY

Peruvian

D.O.B.

041954

ID

DNI 07918169

BACKGROUND INFORMATION

Engineer. He was a Manager of Cofide. He has been the Systems Manager of SAGA FALABELLA S.A. since 1989.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
HIPERMERCADOS TOTTUS S.A.	Legal Representative	20508565934	PERU

FLORES GORRITTI, FELIPE OSCAR MARTIN

NATIONALITY

Peruvian

D.O.B.

011964

ID

DNI 10282044

BACKGROUND INFORMATION

Lawyer, specialized in Human Resources. He worked as Human Resources Manager at Grupo Albis. He joined the company in June 2005.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
OPEN PLAZA S.A.		20266409461	PERU

CONTRERAS RIVAS, JOSE ANTONIO

NATIONALITY

Peruvian

D.O.B.

11/13/196 (Saña, Chiclayo, Lambayeque)

ID

DNI 07793378

CIVIL STATUS

Single

DOMICILE

La Merced 654, Urb. Aurora, Miraflores, Lima / Lima

FATHER'S NAME

Javier Contreras

MOTHER'S NAME

Otilia Rivas

BACKGROUND INFORMATION

Master's Degree in Business Administration. He was the Finance Manager in Hyundai Perú Automotriz and SAGA FALABELLA S.A. until March 2005. He is now the Real Estate Development Manager.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
OPEN PLAZA S.A.		20266409461	PERU
HIPERMERCADOS TOTTUS S.A.	Legal Representative	20508565934	PERU

MUÑOZ DEZA, EDMUNDO

NATIONALITY

Peruvian

D.O.B.

05APR1965

ID

DNI 08838680

BACKGROUND INFORMATION

Systems Engineer, graduated from the National University of Engineering, with Master's Degree in Business Administration from ESAN. He has been the Commercial Manager of Saga Falabella S.A. since January 2007.

ZIMMERMANN FRANCO, ALEX

NATIONALITY

Peruvian

D.O.B.

081970

ID

DNI 07872325

BACKGROUND INFORMATION

Industrial Engineer, graduated from University of Lima. He worked for Backus y Embotelladora Latinoamericana. He joined Saga Falabella S.A. in 1997. He is now the Business Manager.

FALABELLA PERU S.A.A.

BUSINESS BACKGROUND

Chilean firm, incorporated in the country under the Tax ID (RUC) No. 20260172035, headquartered at Paseo de la Republica 3220, San Isidro.
 
Holding in Peru, dedicated to investments in securities with fixed or variable income, as well as in movable and immovable property. Started its activities on 01/12/1994. Its chief executive officer is Mr. Ricardo José Hepp de los Ríos (General Manager).
 
Until 05/15/2009 its name was: INVERSIONES Y SERVICIOS FALABELLA PERU S.A.
 
FALABELLA PERU S.A.A., is also a shareholder of the firm HIPERMERCADOS TOTTUS S.A. (RUC No. 20508565934) recording a capital stock of S/.84,570,789.= Nuevos Soles.

BUSINESS HISTORY

Saga Falabella (LSE: SAGAC1) is a chain of department stores in Peru, created in 1996 after the chilean company acquired the former SAGA chain (Sociedad Andina de los Grandes Almacenes, S. A.).
 
The origin of their activities began on 11/11/1953 under the name of Sears Roebuck del Perú S. A., when it opened its first department store in Lima in 1955.
 
In 1988, it was renamed with the initials SAGA, after Sears abandoned its operations in South America.
 
On 11/18/1994 Saga began operations in the Lima Stock Exchange.
 
The legal name became Saga Falabella in 1996, the new Chilean owners decided to keep the name Saga to settle better in the Peruvian market. That same year the CMR credit card was launched.
 
On 09/08/2010 Saga Falabella opened a store in the mall Surquillo Open Plaza, which holds the first "green store" in Peru, as it has energy and water saving systems.
 
Saga Falabella is part of Falabella, one of the largest and consolidated company in Latin America that is engaged in various business areas, including department stores, large surfaces, improvement and building of houses, supermarkets, banks, travels, and insurances.
 
Now, the department store is the most important in South America with more than 65,000 workers in Chile, Argentina, Colombia, and Peru.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
BANCO FALABELLA PERU S.A.	PERU	20330401991	Related
CORREDORES DE SEGUROS FALABELLA SAC	PERU	20509608467	Related
FALABELLA DE COLOMBIA S.A.	COLOMBIA	9000174478	Related
FALABELLA PERU S.A.A.	PERU	20260172035	Parent Co.
FALABELLA URUGUAY S.A.	CHILE		Related
FALACUATRO S.A.C.	PERU	20269695227	Related
HIPERMERCADOS TOTTUS S.A.	PERU	20508565934	Related
INVERSORA PENALOEN LTDA	CHILE		Related
MALLS PERU S.A.	PERU	20266409461	Related
OPEN PLAZA S.A.	PERU	20266409461	Related
S.A.C.I. FALABELLA	CHILE	907490009	Related
SERVICIOS INFORMATICOS FALABELLA S.A.	PERU	20512550381	Related
SHEARVAN CORPORATE S.A.	BRITISH VIRGIN ISLANDS		Related
SOCIEDAD DE INVERSIONES TAHITI LTDA	CHILE		Related
SOCIEDAD DE INVERSIONES Y RENTAS DON ALBERTO LTDA	CHILE		Related
SOCIEDAD DE INVERSIONES Y RENTAS LIGURIA LTDA	CHILE		Related
SOCIEDAD DE INVERSIONES Y RENTAS MEGEVE LTDA	CHILE		Related
SODIMAC COLOMBIA S.A.	COLOMBIA	8002421062	Related
SODIMAC PERU S.A.	PERU	20389230724	Related
SODIMAC TRES S.A.	CHILE		Related
VIAJES FALABELLA LTDA	CHILE	789970602	Related
VIAJES FALABELLA S.A.	PERU	20471786811	Related

BUSINESS

Main activity

Subject is engaged in import and trade of general merchandise under the department store format, such as appliances, toiletries, light hardware, school supplies, furniture, health, clothing and footwear (for women, men and children), among others. 
 
It also operates in the form of concessions. 

Import

Yes

Country

Albania, Argentina, Bangladesh, Belgium, Brazil, Bulgaria, Cambodia, Chile, China, Colombia, Croatia, Dominican Republic, Ecuador, Egypt

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2012	5,896,325.00
2011	148,532,479.00
2010	101,300,097.00
2009	86,641,869.00

Export

No

% CASH SALES / METHOD

40%

% Credit SALES / Terms

60% (with its own credit card, at several terms)

SELLING TerritorY

100% (Domestic market)

EMPLOYEES

7,311

LOCATION
PREMISES	Own
AREA	5,300 m2
OTHER PREMISES	STORES The company operates department stores in Lima and the provinces of Arequipa, Cajamarca, Chiclayo, Ica, Piura and Trujillo. - Av. La Marina No. 2100, Urb. Pando 1era. etapa, San Miguel, Lima. - Av. Javier Prado Este No. 4200, Urb. Monterrico Norte, Santiago de Surco, Lima. - Av. El Sol No. 2295, Villa El Salvador, Lima - Jr. de la Unión 517, Lima - Jr. de la Unión 630, Lima - Av. Alfredo Mendiola No.3698, Int. A-02, C.C. Mega Plaza, Independencia, Lima - Av. Arequipa 5280, Miraflores, Lima. - Calle Chinchon No. 1018 int. 1401, Urb. Jardin, San Isidro, Lima - Av. Rivera Navarrete No.792, San Isidro, Lima - Av. Rivera Navarrete 889, Dpto.207, 208, San Isidro, Lima. - Av. Industrial No. 3517, Urb. Industrial Panam. Norte, Independencia, Lima - Calle Esq. Huancavelica y Arequipa 551, Int.802, Piura - Piura- - Jr. Pizarro 748, Trujillo - La Libertad. - Av. Ejército 793, Cayma - Arequipa. - Jr. Sor Manuela Gil 151, Urb. San Carlos, Cajamarca - Cajamarca. - Calle Lima 433, Ica - Ica. - Calle Bolivar 437, Ica - Ica. - Av. Hoyos Rubio S/N, Barrio Pueblo Nuevo, Cajamarca - Cajamarca. - Av. Angamos Este 1803 (Angamos Open Plaza), Surquillo, Lima. ADMINISTRATIVE OFFICE - Av. R. Rivera Navarrete No. 889 Dpto. 207 y 208, San Isidro, Lima WAREHOUSES: - Av. T. Valcarcel No.1007, Urb Santa Leonor, Trujillo, La libertad - Av. Alejandro Bertello No.551, Z.I. Bocanegra, Callao - Av. Nestor Gambeta Km. 14.5, Callao - Av. Argentina No. 2317, Callao - Av. Nestor Gambeta Km. 3.6, Callao - Almirante Los Horizontes No.485, Urb. huertos de Villa, Chorrillos, Lima - Calle Gaspar Hernández No.700, Cercado, Lima - Calle Cuzco No. 115, Piura, Piura - Av. Nestor Gambeta No.5349, Callao - Av. Argentina No. 2424, Callao - Jr. F. Wiesse No. 502, Lima - Av. Jose Galvez 1401, La Perla - Callao. - Av. El Sol, Lote 4, Villa El Salvador - 42 BRANCHES - Calle Esq. Arequipa y Huancavelica No.551 interior 802, Piura, Piura. - Jr. Pizarro 748, Trujillo, La Libertad. - Av. Ejército 793 Cayma, Arequipa. - Calle Miguel de Cervantes No. 300, P.J. Diego Ferre, Chiclayo, Lambayeque. - Calle La Merced No.119, Arequipa, Arequipa. - Jiron Sor Manuela Gil No. 151, Urb. San Carlos, Cajamarca, Cajamarca. - Calle Lima 433, Ica, Ica. - Calle Bolivar No. 437, Ica, Ica - Av. Hoyos Rubio S/N, Cajamarca, Cajamarca - Av. Mansiche S/N, Cas. Cortijo, Trujillo - Jr. Pizarro No. 738, Trujillo, La Libertad At the end of 2002, the subject opened a Supermarket called TOTTUS, covering an area of 10,000 m2 , located in the Northern Cone of the City of Lima. In 2003, the second supermarket TOTTUS was opened in the District of San Isidro, Lima and the third one was opened in November 2004 in the District of San Miguel, as well as several stores Sodimac. It should be noticed these stores are very large, well-equipped and with a modern infrastructure.

Comments

Subject also imports from France, Guatemala, Hungary, India, Indonesia, Italy, Korea, Laos, Lithuania, Malaysia, Mexico, Moldova, Morocco, Myanmar, Nepal, Pakistan, Peru, Portugal, Romania, Senegal, Spain, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, USA, Uruguay, Vietnam.
 
Subject's main competitor is the firm "RIPLEY", which operates under the same department store format 
 
In 2001, Saga Falabella opened three stores in Piura, Chiclayo and Trujillo, with a hitherto unpublished format: the Saga Falabella Express Format. 500 m2 on average, the Express had achieved after one year sales per square foot higher than the company gets in Lima. And they were also key in driving the CMR credit card, the main weapon Falabella expansion in Peru.
 
Saga Falabella Arequipa, was the first experiment of modern shopping centers in the provinces. The year: 2002. "The recession is basically a problem of supply, not demand. We believe that people buy when offered a quality product at a good price, that is why we are sure of the success we will have with this new store", said Reinaldo Solari , chairman of Saga Falabella board the day of the opening of this complex of 20,000 m2 of total area. And beyond the department store and its partner in adventure, Movies Planet, have delayed to make the consumer in Arequipa understand, one can not say that Solari was far from the truth.
 
The experience of the Express Stores was key when in 2003 the Grupo Romero proposed Saga Falabella to grow in Piura and be part of its Plaza del Sol, a 10,000 m2 shopping mall that opened in September 2004 and has achieved sales of US$18 million per year, meeting the goals that Martin Perez, general manager of Minka (project developer) promised. This mall brought together, again, another business known: Planet Movie.
 
Earlier this year 2010, the Falabella Group announced investments in Peru for US$140 million dollars for the opening of two shopping centers in Lima and Piura.
 
Through its business unit Malls Peru, reported that its investment plan for this year includes the opening of two shopping centers, one located in Lima and another in Piura, which will require an investment of US$140 million dollars.
 
The first project launched last September was the Surquillo Open Plaza. The mall was built on an area of more than 120 thousand square meters, land that it took two and a half years to be integrated as there were eight separate plots that have managed to unite, and their development demanded a total investment of US$100 million dollars. The complex has three commercial levels and three parking levels, and houses stores such as Tottus, Sodimac and Saga Falabella, plus 80 local operators excluding food courts, the Cinemark theater chain and a Coney Park entertainment center.
 
The Piura Open Plaza project was begun late in the first quarter of this year to have it opened in November or December this year. The project area is 50,000 square meters.
 
In September 2010, the Angamos store was opened inside the mall Angamos Open Plaza. Also, in December new stores in Piura and Arequipa were opened, located in the Mall Piura Open Plaza and the Mall Aventura Plaza, respectively.

FINANCIAL INFORMATION

Interviewee(s)

TERCERAS FUENTES

Disposition

Report totally prepared by outside sources.

Information provided

It should be mentioned that information included in this report was collected from third-party sources because it was not possible to obtain any information directly from the company under internal policies.
 
It includes a summary of the Annual Balance Sheet as of 12/31/2011 (12 months), with respect to previous fiscal years, obtained from our files, values expressed in Nuevos soles (S/.)

BALANCE SHEET
Balance sheet date	31DEC2011	31DEC2010	31DEC2009	31DEC2008
Type of balance sheet	Annual	Annual	Annual	Annual
Period	12 months	12 months	12 months	12 months
Currency	Nuevos Soles	Nuevos Soles	Nuevos Soles	Nuevos Soles
Exchange rate per US$	2.7	2.8	2.88	3.1
A S S E T S
Cash/bank	44,607,000.00	81,663,000.00	26,897,000.00	43,216,000.00
Receivables	198,123,000.00	103,884,000.00	96,799,000.00	7,493,000.00
Inventory	387,486,000.00	323,060,000.00	266,057,000.00	287,684,000.00
Others	6,629,000.00	9,536,000.00	9,130,000.00	113,630,000.00
Current Assetsd	636,845,000.00	518,143,000.00	398,883,000.00	452,023,000.00
Fixed	452,860,000.00	353,343,000.00	315,178,000.00	343,778,000.00
Others	211,683,000.00	104,801,000.00	88,847,000.00	60,417,000.00
Total Assets	1,301,388,000.00	976,287,000.00	802,908,000.00	856,218,000.00
L I A B I L I T I E S
Bank/Suppliers	401,004,000.00	347,809,000.00	335,576,000.00	450,601,000.00
Others	229,850,000.00	163,588,000.00	105,260,000.00	85,496,000.00
Current liabilities	630,854,000.00	511,397,000.00	440,836,000.00	536,097,000.00
Long term	135,588,000.00	56,363,000.00	41,485,000.00	60,417,000.00
Others			949,000.00
TOTAL LIABILITIES	766,442,000.00	567,760,000.00	483,270,000.00
S H A R E H O L D E R S'  E Q U I T Y
Capital	250,000,000.00	99,275,000.00	99,275,000.00	99,275,000.00
Reserves	24,684,000.00	24,517,000.00	19,855,000.00	19,855,000.00
Others	260,262,000.00	284,735,000.00	200,508,000.00	140,574,000.00
Total shareholders equity	534,946,000.00	408,527,000.00	319,638,000.00	259,704,000.00
Total Liab. / Sh. equity	1,301,388,000.00	976,287,000.00	802,908,000.00	856,218,000.00
Sales	2,212,961,000.00	1,847,573,000.00	1,623,959,000.00	1,536,851,000.00
Profit (Loss)	144,586,000.00	145,435,000.00	88,629,000.00	92,919,000.00

R A T I O
Liquidity ratio	1.01	Current assets / Current liabilities
Debt-to-equity ratio	84.80 %	(Shareholders' equity / Current liabilities %)
Profitability margin	6.53 %	(Profits / Sales %)
Working capital	5,991,000.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

A-: SATISFACTORY
Based on last submitted Financial Statement, Subject's Financial Situation is considered as Satisfactory. Although Subject has an adjust relation among current accounts, its shareholders' equity supports its current liabilities moderately. 
Subject sales are increasing.
Subject ends fiscal year with good results. 
 
SAGA FALABELLA S.A. is recognized a company of wide experience. During its operations, no negative background against Subject was found. Moreover, it has a good opinion in commercial and banking markets. 

Property of company comments

Subject's main real estate assets are the stores in San Isidro and Lima Centro, the mall in Arequipa, and the distribution center in Villa El Salvador. From these assets, the store in Arequipa is given as guarantee to support the SBLC issued by The Royal Bank of Scotland (formerly ABN Amro) as collateral under the framework of the First Program of Issue of Saga Falabella S.A. Corporate Bonds.

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
EL PACIFICO PERUANO SUIZA CIA DE SEGUROS	All risk	Yearly	Not specified

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: Interamerican Service Co. S.A.	Tel.: (511) 4655070	Country: PERU
Goods/Services? : Customs services
Highest credit? : Open
Client since? : 11/2003	Terms? : 30 days	Performance? : Prompt
Comments : Good client
Supplier: Valditex S.A.	Tel.: (511) 4376037	Country: PERU
Goods/Services? : Clothes
Highest credit? : Open
Client since? : 1988	Terms? : 20 days	Performance? : Prompt
Comments : Good client
Supplier: Mabe Perú S.A.	Tel.: (511) 4422121	Country: PERU
Goods/Services? : Electrical appliances
Highest credit? : Open
	Terms? : 30-60 days	Performance? : Prompt
Comments : Good client

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country	Comment
LG Electronics S.A.	PERU	Supplier does not provide references.
Rosen Perú S.A.	PERU	Supplier has not replied our request.
Silver	COLOMBIA
Mango	SPAIN
Benetton	ITALY

CREDIT HISTORY

It's important to mention that to date no protested documents, NSF checks, closed accounts or lawsuit against the Subject were found. Furthermore, taxpayer has no tax debt in coercive collection status and no tax omissions were reported. 

BANKING INFORMATION

Bank	Account #
CREDITO	792520-0-51
SCOTIABANK	000-876968-0
CONTINENTAL
INTERBANK
CITIBANK
FALABELLA

Subject is a client of the above-mentioned banking entities, which did not provide any information on subject's banking movements under bank secrecy. However, based on other consulted sources, Subject uses facilities in other forms, without negative background.

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 30/04/2012

Bank	Debt Rating	Current Debt
		S/.	US$
B. SCOTIABANK	NORMAL	127,910,289.00
B. CREDITO	NORMAL	90,174,573.00
B. CITIBANK DEL PERU	NORMAL	73,384,822.00
B. FALABELLA	NORMAL	20,000,000.00
B. SANTANDER PERU	NORMAL	12,474,248.00
B. CONTINENTAL	NORMAL	10,941,130.00
B. INTERBANK	NORMAL	3,130.00
Total		334,888,192.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 7                           30/04/2012

		Domestic Currency	Foreign Currency
LOANS	:	121,000,000.00
CREDIT CARDS	:	139,290.00
OTHER INDIRECT CONTINGENT DEBTS	:	207,179,324.00
LEASE BACK, ACCRUED INTERESTS	:	6,569,579.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	334,888,193.00
		=========================	=========================

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)
Normal	Good Finantial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.
Potential Problem	Satisfactory Finantial Situation but cash flow can be weak. Irregular payments. Irregular Trend.
Deficient	Fair Finantial Situation, cash problems, profits shortage, delayed and overdue payments.
Doubtful	Heavy Finantial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.
Loss	Bad Finantial Situation, Insufficient funds, declared bankruptcy, debt default.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.36
UK Pound	1	Rs.85.63
Euro	1	Rs.69.21

INFORMATION DETAILS

Report Prepared by :

PDT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.