Investment Plan

Falabella is constantly looking for investment opportunities that will contribute to the growth of its businesses, generate synergies or that can leverage the Company’s know-how. Each investment is studied and evaluated from the perspective of cash flow projections and strategic value. Financing policies are determined on a case by case basis, always following the guidelines approved by the Board.

In January 2015, Falabella announced a new organic growth plan for the next four years, until 2018, which estimates a total investment of US$ 4,363 million. In this capex plan, 53% will be invested in the opening of 140 new stores and 11 new shopping centers across the six countries where the Company has operations. Additionally, the budget assigned to expansions and renovations will be US$ 915 million over the next four years, which is double what was announced the previous year. This investment aims to develop the Company’s existing points of sale to their maximum potential, offering customers the best possible experience. Finally, 26% of the capex plan will be invested in logistics and technology, in order to increase efficiency and productivity, as well as support the growth of the online operation.