6-K 1 form6k.txt DISTRIBUTION AND SERVICES D&S, INC. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15b-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For September 3, 2002 Distribution and Service D&S, Inc. --------------------------------------------- (Translation of registrant's name into English) Avenida Presidente Eduardo Frei Montalva 8301 ---------------------------------------------------------- Quilicura --------------------------- Santiago --------------------------------- Chile --------------------------------- (Address of principal executive offices) Form 20-F [X] Form 40-F [ ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [ ] No [X] Distribucion y Servicio D&S S.A. II Quarter 2002 Results For further information, please contact: Nicolas Ibanez S. CEO nibanez@dys.cl -------------- (56 - 2) 200 5201 Miguel Nunez S. CFO mnunez@dys.cl ------------- (56 -2) 200 5735 Loreto Bradford V. Investor Relations lbradford@dys.cl ---------------- (56 - 2) 200 5363 Contents I. Highlights and Complementary Information II. Comments from the CEO III. Analysis of Results IV. Sales and Other Indicators V. Additional Information VI. FECU Figures in this report are expressed in US$ Millions, drawn from figures in Chilean pesos restated by the CPI at June 30, 2002 and converted into dollars using the observed exchange rate for the same date (1US$=Ch$ 688.05). I. Highlights Increase of net revenues and gross income Net revenues increased by 14.4% compared to the same period of last year. Despite a difficult economic environment with low consumption levels (reflected in a 0.3% decrease in same store sales), the Company achieved a 12.7% increase in total sales, and gross income in the amount of US$84.3 million, a 20.1% increase over last year, which represented 23.3% of net revenues. Increase in non-food sales During the second quarter of 2002, total sales in the non-food areas of Apparel, Electronics & Appliances and Home showed increases of 60.8%, 37.9% and 16.7%, respectively. Thus, the non-traditional business areas together (including Pharmacy) present a 25.0% increase, and represented 22.4% of total Company sales. In terms of same store sales, non-food areas showed a 5.1% increase over the second quarter of last year. In the period January-June 2002, same store sales of non-food areas exhibited a 10.4% increase over the year 2001. Opening of new stores During the second quarter, the Company opened three new Lider hypermarkets in regions, in the cities of Puerto Montt (April 29), Calama (May 27) and Valdivia (June 26). Additionally, three Ekono supermarkets in Santiago were transformed into the Lider Vecino hypermarket format (Los Morros, Santa Rosa and Independencia). Thus, at June 30 of the current year, four new hypermarkets had been opened and six Ekono supermarkets had been transformed into Lider Vecino hypermarkets, with a total increase of 27,807 sq.m. of sales area. These openings and transformations are consistent with the Company's strategy to increase national coverage and improve efficiency in terms of sales per square meter. I.1. Complementary Information Capital Increase During the Extraordinary Shareholders Meeting held on May 23, 2002, properly called, informed and constituted, shareholders of Distribucion y Servicio D&S S.A. approved a capital increase in the amount of Ch$163,622,500,000 through the issuance of 250 millions of no par value nominative shares of a single series of common stock. As a result the Company's capital would increase from Ch$208,528,749,431, divided in 1,380 million shares, to Ch$372,151,249,431, divided in 1,630 million of nominative no par value shares of common stock. The new shares are to be issued, subscribed and paid in within three years from such date. Account Receivable from Disco S.A. In the context of the current financial situation of the Argentinean Velox entrepreneurial group, and the consequences that the lack of performance of the secured obligation might have on the results of D&S, the Company informs as follows: "The obligation which is secured by the personal guarantee of Disco/Ahold International Holdings N.V., is the obligation of Disco S.A., an Argentine stock corporation, to pay Distribucion y Servicio D&S S.A., the amount of US$80,000,000, which corresponds to the unpaid portion of the purchase price of the shares of Supermercados Ekono Sociedad Anonima, an Argentinean stock corporation, plus US$10,000,000, which corresponds to the purchase price adjustment account, minus certain deductions to be made therefrom, payments both of which are due on May 2nd, 2003. The obligation to pay the unpaid portion of the purchase price is evidenced by 10 promissory notes issued by Disco S.A. in the amount of US$8,000,000 each, which payment is secured by Disco/Ahold International Holdings N.V. as guarantor." "Royal Ahold, the Dutch parent company of Disco/Ahold International Holdings N.V. publicly announced on July 17th, 2002 that, due to certain breaches by Velox Retail Holdings, which are secured with the shares belonging to the later in Disco/Ahold International Holdings N.V., Royal Ahold shall acquire "substantially all" of the shares of Disco/Ahold International Holdings N.V., parent company, and guarantor of the obligations, of Disco S.A. towards Distribucion y Servicio D&S S.A., in a US$490,000,000 transaction." "Given the above and also given the credit worthiness of Royal Ahold, Distribucion y Servicio D&S S.A. believes that Disco S.A. shall timely and fully perform its obligations to pay both the unpaid portion of the purchase price as well as the then existing balance of the purchase price adjustment account, and, thus will not have any consequence on the results of the company since no risk of performance is currently foreseen and no need to foreclose on the above mentioned personal guarantee. Notwithstanding the above, in the unlikely event of non-payment by Disco S.A. of its above described obligations, Distribucion y Servicio D&S S.A. shall foreclose the personal guarantee of Disco/Ahold International Holdings N.V. before the competent courts of law." "Lastly and as a consequence of the above, the financial situation of the Argentinean Velox entrepreneurial group shall, neither directly nor indirectly, affect the performance of the obligations of Disco S.A. towards Distribucion y Servicio D&S S.A., which in furtherance are secured by Disco/Ahold International Holdings N.V., its parent company." II. Comments from the CEO Sales During the second quarter 2002 same store sales decreased by 0.3% and total sales increased by 12.7% in relation to the same period of 2001. These figures evidence the stagnant economic conditions affecting the country, with low consumption levels and high unemployment rates( 9.5% in June 2002). Sales for the quarter were also affected by the absence of the Easter holidays, taking place in March this year, one less day of sales due to the National Census and the severe floods affecting most of Chile. Despite the above, the Company's performance in terms of sales is well above that of the supermarket industry, which recorded a 2.8% drop in same store sales as of June 30 of the current year, whereas D&S showed a 3.1% same store sales increase in the same period. Gross Income, Operating Income and EBITDA The increased volume in Company sales and other operating revenues (logistic revenues, rental income, commercial revenues and Presto Card) during the second quarter, resulted in total revenues increasing 14.4% over last year, and gross income of US$84.3 million, 20.1% higher than in 2001, corresponding to a 23.3% of total revenues. However, total operating expenses present a 27.3% increase over the same period of last year, exceeding growth rates of total revenues and gross income. The increase in operating expenses, both recurring expenses and start-up expenses - resulting from our aggressive expansion program - had a negative impact on the Company's operating income and EBITDA, which decreased by 9.0% and 1.5%, respectively, in comparison with last year's results. Financial Structure As of June 30, 2002, the debt/shareholder's equity ratio is 0.77 times and the Company has financial debt in the amount of US$324.1 million, all Chilean-peso denominated, with no relevant obligations in US dollars. Of the total debt, 40.8% corresponds to short-term obligations. New Store Openings During the second quarter the Company opened three new Lider hypermarkets in the cities of Puerto Montt (April 29), Calama (May 17) and Valdivia (June 26). Additionally, three Ekono supermarkets in Santiago were converted into Lider Vecino hypermarkets (Los Morros, Santa Rosa and Independencia. In sum, at June 30, 2002, 4 new Lider hypermarkets have been opened and 6 Ekono supermarkets have been transformed into Lider Vecino hypermarkets. CAPEX As of June 30 of the current year, in accordance with the expansion program approved by the Board, the Company has made investments in the amount of US$50.9 million. The company expects to complete the expansion program for 2002 within the US$120 million budget agreed upon by the Board. Priorities Our priorities continue to be increasing our national coverage, growing our core business and promoting further development in our non-traditional business areas, thus increasing our share in family spending (share of wallet); and improve efficiency standards within the Company for higher profitability and returns of our businesses. III. Income Statement Second Quarter 2002 Net revenues for the second quarter 2002 totaled US$361.3 million, representing a 14.4% increase compared to the same period of 2001. This increase is attributed to a 12.7% total sales increase entirely contributed by new stores opened during the second half of 2001 and the first half of 2002, along with an important increase in other revenues. Same store sales, on the other hand, were flat, with a 0.3% decrease in the quarter in comparison with the same period of last year. This low sales volume is due to the sustained economic contraction and persistently low consumption levels, in addition to an earlier Easter holiday which was included in March this year, one less day of sales in April due to the National Census, and the impact of severe floods affecting most of Chile at the beginning of June. TABLE 1: SECOND QUARTER RESULTS
2002 2001 Change ---------------------------------- ---------------------------------- ---------- Ch$ US$ Ch$ US$ millions millions % millions millions % % ----------- ----------- ---------- ----------- ----------- ---------- ---------- Sales 220,191 320.0 88.6% 195,322 283.9 89.9% 12.7% Other revenues 28,404 41.3 1.8% 21,939 31.9 1.6% 29.5% Net revenues 248,595 361.3 100.0% 217,261 315.8 100.0% 14.4% ------------------------------------- ----------- ----------- ---------- ----------- ----------- ---------- ---------- Cost of sales 190,617 277.0 76.7% 168,967 245.6 77.8% 12.8% Gross Income / Margin 57,978 84.3 23.3% 48,294 70.2 22.2% 20.1% Recurring Operating Expenses 38,613 56.1 15.5% 30,530 44.4 14.1% 26.5% Start-up Expenses 2,414 3.5 1.0% 553 0.8 0.3% 336.6% Total Operating Expenses (SG&A) 41,026 59.6 16.5% 31,083 45.2 14.3% 32.0% EBITDA 16,952 24.6 6.8% 17,211 25.0 7.9% -1.5% ------------------------------------- ----------- ----------- ---------- ----------- ----------- ---------- ---------- Depreciation 8,165 11.9 3.3% 7,555 11.0 3.5% 8.1% Total Operating Expenses 49,191 71.5 19.8% 38,638 56.2 17.8% 27.3% Operating Income 8,787 12.8 3.5% 9,656 14.0 4.4% -9.0% Financial Expenses (2,800) (4.1) -1.1% (3,082) (4.5) -1.4% -9.2% Other Non-operating Income (Expenses) 1,906 2.8 0.8% 2,733 4.0 1.3% -30.2% Monetary Correction 2,172 3.2 2.4% 2,602 3.8 3.0% -16.5% Non-Operating Income (893) (1.3) -0.4% (349) (0.5) -0.2% 156.0% Income before Tax 7,894 11.5 3.2% 9,307 13.5 4.3% -15.2% Income Tax (1,251) (1.8) -0.5% (1,504) (2.2) -0.7% -16.8% Minority Interest (18) (0.0) 0.0% (32) (0.0) 0.0% -44.4% Income 6,624 9.6 2.7% 7,771 11.3 3.6% -14.8% Amortization of Goodwill 85 0.1 0.0% 87 0.1 0.0% -2.0% Net Income 6,710 9.8 2.7% 7,858 11.4 3.6% -14.6% ------------------------------------- ----------- ----------- ---------- ----------- ----------- ---------- ---------- In Ch$ Millions and US$ Millions, currency of June 2002, exchange rate 1US$=Ch$688.05 Source: D&S
Gross income reached the amount of US$84.3 million, equivalent to 23.3% of net revenues, representing a 20.1% increase compared to the same period of 2001. Recurring operating expenses amounted to US$56.1 million, equivalent to 15.5% of net revenues, representing a 26.5% increase over the second quarter of last year. This increase is attributable to higher marketing and selling expenses, mainly from the new stores, which are not offset by their level of revenues. Start-up expenses totaled US$3.5 million, equivalent to 1.0% of net revenues, resulting from our expansion program, which included three new Lider openings (Puerto Montt, Calama and Valdivia) and the conversion of three Ekono stores into Lider Vecino hypermarkets during the quarter. Consequently, total operating expenses amounted to US$59.6 million, equivalent to 16.5% of net revenues, representing a 32.0% increase over the same period in 2001. EBITDA for the second quarter 2002 was US$24.6 million, which corresponds to 6.8% of total revenues, representing a 1.5% decrease compared to the same period in 2001. Operating income decreased by 9.0% in the second quarter compared to the previous year due to higher non-recurring operating expenses (start-up expenses) related to the opening of new stores and conversion of existing stores, and higher recurring expenses as explained above. Non-operating income (loss) amounted to US$1.3 million loss, equivalent to 0.4% of net revenues, presenting a 156.0% decrease as compared to last year. Even though financial expenses present a 9.2% decrease compared to the former year, the 16.5% lower gain from currency exchange differences (which is originated in the US dollars account receivable from Disco S.A.) largely offsets this improvement and reduces non-operating results compared to last year. Net income for the second quarter 2002 was US$9.8 million, corresponding to 2.7% of net revenues, which represents a 14.6% decrease compared to the same period in the year 2001. Consolidated Results I Half 2002 TABLE 2: FIRST HALF RESULTS
2002 2001 Change ---------------------------------- ---------------------------------- ---------- Ch$ US$ Ch$ US$ millions millions % millions millions % % ----------- ---------- ----------- ----------- ----------- ---------- ---------- Sales 431,376 627.0 88.5% 375,017 545.0 90.0% 15.0% Other revenues 56,241 81.7 1.7% 41,726 60.6 1.7% 34.8% Total Net revenues 487,617 708.7 100.0% 416,743 605.7 100.0% 17.0% ------------------------------------- ----------- ---------- ----------- ----------- ----------- ---------- ---------- Cost of sales 375,525 545.8 77.0% 323,680 470.4 77.7% 16.0% Gross Margin 112,092 162.9 23.0% 93,063 135.3 22.3% 20.4% Total Recurring Operating Expenses 71,028 103.2 14.6% 55,654 80.9 13.4% 27.6% Start-up Expenses 3,741 5.4 0.8% 553 0.8 0.1% 576.7% Total Operating Expenses (SG&A) 74,769 108.7 15.3% 56,207 81.7 13.5% 33.0% EBITDA 37,322 54.2 7.7% 36,856 53.6 8.8% 1.3% ------------------------------------- ----------- ---------- ----------- ----------- ----------- ---------- ---------- Depreciation 16,309 23.7 3.3% 15,035 21.9 3.6% 8.5% Total Operating Expenses 91,078 (132.4) 18.7% 71,242 103.5 17.1% 27.8% Operating Income 21,013 30.5 4.3% 21,821 31.7 5.2% -3.7% Financial Expenses (6,486) (9.4) -1.3% (6,140) (8.9) -1.5% 5.6% Other Non-operating Income 1,797 2.6 0.4% 4,169 6.1 1.0% -56.9% (Expenses) Monetary Correction 2,342 3.4 0.5% 3,928 5.7 0.9% -40.4% Non-Operating Income (4,689) (6.8) -1.0% (1,971) (2.9) -0.5% 138.0% Income before Tax 16,324 23.7 3.3% 19,850 28.9 4.8% -17.8% Income Tax (2,547) (3.7) -0.5% (3,100) (4.5) -0.7% -17.8% Minority Interest (47) (0.1) 0.0% (72) (0.1) 0.0% -35.2% Income 13,730 20.0 2.8% 16,678 24.2 4.0% -17.7% Amortization of Goodwill 171 0.2 0.0% 171 0.2 0.0% 0.0% Net income 13,901 20.2 2.9% 16,849 24.5 4.0% -17.5% ------------------------------------- ----------- ---------- ----------- ----------- ----------- ---------- ---------- (Exchange rate US$ = Ch$688.05) Source: D&S
Income Statement First Half 2002 During the first half of the current year, total sales amounted to US$627.0 million, which corresponds to 88.5% of total revenues and represents a 15.0% increase over last year, while same stores sales increased by 3.1% over the year 2001. This same store sales growth in entirely contributed by the good performance of 6.6% same store sales growth during the first quarter. Net revenues totaled the amount of US$708.7 million, representing an increase of 17.0% compared to the first half of 2001. Gross income for the first half of 2002 totaled US$162.9, corresponding to 23.0% of net revenues, and representing a 20.4% increase over the same period of 2001 when it totaled US$135.6 million and represented 22.3% of net revenues. Recurring operating expenses (SG&A excluding depreciation and amortization) amounted to US$103.2 million or 14.6% of total revenues, a 27.6% increase over the first half of 2001. Start-up expenses totaled US$5.4 million, equivalent to 0.8% of net revenues. This increase results from the expansion program undertaken by the Company, which included the opening of four new Lider hypermarkets (Concepcion II, Puerto Montt, Calama and Valdivia), and the conversion of six Ekono supermarkets into the Lider Vecino format in the period January-June 2002. EBITDA increased by 1.3%, totaling the amount of US$54.2 million, which represents 7.7% of total revenues. Operating income decreased by 3.7%, totaling US$30.5 million, representing 4.3% of total revenues. Non-operating income (loss) amounted to US$6.8 million loss (equivalent to 1.0% of net revenues) which compares unfavourably with the same period of 2001 when this figure was a loss of US$2.9 million, or 0.5% of net revenues. This result is explained mainly by a 40.4% gain reduction from currency exchange differences in addition to a 5.6% increase in financial expenses compared to the first half 2001 results. The income statement for the first half 2002 shows net income amounts of US$20.2 million, corresponding to a 2.9% of net revenues, and representing a 17.5% decrease when compared to results for the same period in 2001. IV. Sales and Other Indicators IV.1. Sales IV.1.A. Total Sales and Same Store Sales Second Quarter 2002 During the second quarter of 2002 there was a 12.7% increase in total sales compared to the same period of 2001. Same store sales, on the other hand, decreased by 0.3% compared to the second quarter 2001. Thus, the increase in total sales is given by new stores opened during the second half of 2001 and first half of 2002, while same store sales figures show the adverse effects of a complex economic environment characterized by low consumption levels and high unemployment, with further deterioration due to the unfavourable composition of April, which lacked Easter holidays this year and had one less day of sales due to the National Census, and intense flooding at the beginning of June. TABLE 3: D&S TOTAL RETAIL SALES
TOTAL SALES SAME STORE SALES ------------------------------------------------------------- ------------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL IQ IIQ IIIQ IVQ IH 9M TOTAL ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- TOTAL D&S ------------- ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- 2002 210,844 219,846 430,690 186,928 188,625 375,553 2001 179,134 195,104 206,179 243,690 374,238 580,417 824,107 175,298 189,103 364,401 % Change YoY 17.7% 12.7% 15.1% 6.6% -0.3% 3.1% SUPERMARKETS ------------- ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- 2002 46,763 40,802 87,565 45,043 47,550 92,593 2001 52,703 59,192 41,781 44,529 111,895 153,676 198,205 43,017 47,698 90,715 % Change YoY -11.3% -31.1% -21.7% 4.7% -0.3% 2.1% HYPERMARKETS ------------- ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- 2002 164,060 179,044 343,104 131,551 129,209 260,760 2001 126,181 135,789 164,192 198,987 261,970 426,162 625,149 126,181 133,518 259,699 % Change YoY 30.0% 31.9% 31.0% 4.3% -3.2% 0.4% GROCERIES ------------- ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- 2002 87,326 93,060 180,386 77,973 78,517 156,489 2001 75,017 85,964 89,721 100,177 160,981 250,702 350,879 71,910 82,363 154,273 % Change YoY 16.4% 8.3% 12.1% 8.4% -4.7% 1.4% PERISHABLES ------------- ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- 2002 71,298 77,528 148,826 62,250 64,035 126,285 2001 62,826 69,691 75,845 83,638 132,517 208,362 292,000 59,553 66,040 125,593 % Change YoY 13.5% 11.2% 12.3% 4.5 -3.0% 0.6% NON-FOOD ------------- ------- -------- ------- ------- ------- ------- ------- ------- ------- ------ ----- -------- ----- ----- 2002 52,210 49,275 101,485 45,944 39,973 85,917 2001 41,278 39,404 40,612 59,876 80,683 121,295 181,170 39,805 38,041 77,846 % Change YoY 26.5% 25.0% 25.8% 15.4% 5.1% 10.4%
First Half 2002 During the first half of 2002 total sales increased by 15.1%, and same stores sales recorded a 3.1% increase compared to the same period in 2001. As previously stated, the total sales increase is mainly due to the opening of new stores, and the 3.1% same store sales increase for period January-June is due entirely to the good performance during the first quarter of the current year (6.6% SSS increase). IV.1.B. Total Sales By Format Second Quarter 2002 Total sales amounted to Ch$174,044 million (US$260.2 million) in the hypermarket division, showing a 31.9% increase compared to the same period of 2001. Thus, the hypermarket division represents 81.4% of total Company sales compared to 69.6% in the same quarter of 2002. This increase is explained by the conversion of Ekono supermarkets into Lider Vecino hypermarkets (11 stores in total to date), and the new store openings, all under the hypermarket format. The preponderant weight of the hypermarket format is consistent with the Company's strategy of satisfying most of our customers' needs under one roof (one-stop shopping) at the lowest market prices. Total sales of the supermarket division amounted to Ch$40,822 million (US$59.3 million), 31.1% lower than in the former year, representing 18.6% of total Company sales. This decrease is explained by the successive transformations of Ekono supermarkets into the Lider Vecino hypermarket format, as described above. First Half 2002 During the period January-June 2002, total sales of the hypermarket division increased by 31.0% compared to the same period the former year, whereas the supermarket division presents a 19.0% decrease as a result of the conversion of Ekono supermarkets into Lider Vecino hypermarkets. IV.1.C. Same Stores Sales by Format Second Quarter 2002 In terms of same store sales the hypermarket division presents a 3.2% decrease in the second quarter compared to the same period in 2001, and the supermarket division presents a 0.3% decrease during the period. Consolidated same store sales show a 0.3% decrease, which is favourably compared with figures of the supermarket industry (this figure includes sales from the new Lider Vecino hypermarkets resulting from the conversion of existing stores, which are not included in the supermarket division nor in the hypermarket division same store sales figures). First Half 2002 Same stores sales for the first half of 2002 present a 2.1% increase in the supermarket division and a 0.4% increase in the hypermarket division compared to the same period in 2001. Consolidated same store sales increased by 3.1% in relation to the first half of the year 2001. IV.1.D. Total Sales and Same Store Sales By Business Area Second Quarter 2002 Total sales during the second quarter 2002 increased by 8.3% in groceries, 11.2% in perishables and 25.0% in the non-food areas (Apparel, Electronic& Appliances, Home and Pharmacy). Thus, the non-traditional business areas continued to show higher increases relative to the traditional business areas, consistent with the Company's strategy in this sense. Total non-food sales represented 22.4% of the total Company sales in the second quarter 2002 compared to a 20.2% share of total sales in the same period of the former year. In terms of same store sales, the non-food areas presented a 5.1% increase over the former year, and the areas of groceries and perishables decreased by 4.7% and 3.0% respectively. First Half 2002 In the period January-June 2002 total sales of groceries, perishables and non-food present increases of 12.1%, 12.2% and 25.8%, respectively, compared to the former year. Thus, as explained above, the sales mix has gradually changed in accordance with the Company's strategy, and at June 30 of the current year, groceries represent a 41.9% of total sales, perishables represent a 34.6%, and non-food areas together represent a 23.6% of the Company's sales. At the same date in 2001, the sales mix was 43.0% groceries, 35.4% perishables and 21.6% non-traditional areas. In terms of same store sales the same trend is witnessed, with higher increases in the non-food areas (10.4% growth over the first half 2001) relative to the traditional business areas (1.4% increase in groceries and 0.6% in perishables over the same period of the former year). IV.2. Transactions IV.2.A. Total Number of Transactions Second Quarter 2002 The number of transactions in supermarkets presents a 25.2% decrease compared to the same period of the former year. This decrease is explained by the conversion of Ekono supermarkets into Lider Vecino hypermarkets. On the other hand, the total number of transactions in the hypermarket division presents a 43.0% increase compared to the former year, explained mainly by the new store openings, all of them in the hypermarket format (Lider and Lider Mercado). On a consolidated basis, the total number of transactions for the second quarter 2002 increased by 11.8% compared to the same period the former year. TABLE 4: TRANSACTIONS
TOTAL TRANSACTIONS SAME STORE TRANSACTIONS ------------------------------------------------------- --------------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL IQ IIQ IIIQ IVQ IH 9M TOTAL ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ------ ------- TOTAL D&S --------------- ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ------ ------- 2002 27,811 29,117 56,928 25,174 25,388 50,562 2001 24,193 26,034 50,227 23,474 24,874 48,348 % Change YoY 15.0% 11.8% 13.3% 7.2% 2.1% 4.6% SUPERMARKETS --------------- ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ------ ------- 2002 9,640 8,852 18,492 9,323 9,269 18,592 2001 10,988 11,833 22,821 8,973 9,186 18,159 % Change YoY -12.3% -25.2% -19.0% 3.9% 0.9% 2.4% HYPERMARKETS --------------- ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ------ ------- 2002 18,171 20,264 38,435 13,931 13,880 27,811 2001 13,154 14,168 27,322 13,154 13,881 27,035 % Change YoY 38.1% 43.0% 40.7% 5.9% 0.0% 2.9%
IV.2.B. Same Store Transactions Second Quarter 2002 The number of transactions in same stores during the second quarter 2002 presents a flat behaviour both in hypermarkets and supermarkets, with a 0.9% increase in the supermarket division and a 0.0% increase in the hypermarket division. On a consolidated basis the number of transactions in same stores present a 2.1% increase during the second quarter 2002 compared to the former year, which is mainly given by the new Lider Vecino stores, which are not included in the supermarket format nor in the hypermarket format but add to the number of same store transactions since they are conversions of existing stores. IV.3. Sales per Transaction IV.3.A. Total Sales per Transaction Second Quarter 2002 The average sales per transaction during the second quarter 2002 compared to the same period in 2001 decreased by 7.9% and 7.8% in the supermarket and the hypermarket division respectively. In the Company total, the average sales per transaction presents a 0.8% increase compared to last year, resulting from the new stores transformed into the Lider Vecino format. TABLE 5: SALES PER TRANSACTION
TOTAL SALES PER TRANSACTIONS SAME STORE SALES PER TRANSACTION ------------------------------------------------------- -------------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL IQ IIQ IIIQ IVQ IH 9M TOTAL ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ----- ------- TOTAL D&S --------------- ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ----- ------- 2002 7,581 7,550 7,566 7,425 7,430 7,428 2001 7,404 7,494 7,451 7,468 7,602 7,537 % Change YoY 2.4% 0.8% 1.5% -0.6% -2.3% -1.5% SUPERMARKETS --------------- ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ----- ------- 2002 4,851 4,609 4,735 4,831 5,130 4,980 2001 4,796 5,002 4,903 4,794 5,192 4,996 % Change YoY 1.1% -7.9% -3.4% 0.8% -1.2% -0.3% HYPERMARKETS --------------- ------ ------ ------ ------ ------ ------ ------- ------ ------- ------ ------ ------- ----- ------- 2002 9,029 8,836 8,927 9,443 9,309 9,376 2001 9,593 9,584 9,588 9,593 9,619 9,606 % Change YoY -5.9% -7.8% -6.9% -1.6% -3.2% -2.4% In Ch$, currency of June 2002.
IV.3.B. Same Store Sales per Transaction Second Quarter 2002 The average sales per transaction in same stores presents a 1.2% decrease in the supermarket division and a 3.2% decrease in the hypermarket division during the second quarter of the current year compared to the same period of last year. On a consolidated basis the amount of same store sales per transaction presents a 2.3% decrease compared to the same period in 2001. IV.4. Sales per Square Meter TABLE 6: SALES PER SQ.METER (AVERAGE)
TOTAL SALES/SQ.M SAME STORE SALES/SQ.M ------------------------------------------------------------ ---------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL IQ IIQ IIIQ IVQ IH 9M TOTAL ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ ------ -------- ----- ------ TOTAL D&S ------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ ------ -------- ----- ------ 2002 263,401 257,834 260,529 263,667 258,374 260,982 2001 247,562 264,766 264,604 311,506 256,242 259,151 272,704 247,742 259,924 253,917 % Change YoY 6.4% -2.6% 1.7% 6.4% -0.6% 2.8% SUPERMARKETS ------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ ------ -------- ----- ------ 2002 248,211 275,245 260,115 239,082 320,766 275,051 2001 279,740 399,301 318,930 339,906 332,389 328,618 331,089 228,328 321,764 269,473 % Change YoY -11.3% -31.1% -21.7% 4.7% -0.3% 2.1% HYPERMARKETS ------------- ------- ------- ------- ------- ------- ------- ------- -------- ------- ------ ------ -------- ----- ------ 2002 268,042 254,170 260,619 272,252 252,665 262,181 2001 235,767 230,677 253,308 305,526 233,101 240,493 257,971 261,139 261,091 261,114 % Change YoY 13.7% 10.2% 11.8% 4.3% -3.2% 0.4% In Ch$, currency of June 2002, exchange rate 1US$=Ch$688.05.
At June 30, 2002 the total sales per square meter of sales area amounted to US$378.6 (Ch$260,529), representing a 1.7% increase compared to the amount recorded in the same period of last year. Same store sales per square meter were US$379.3 (Ch$260,982), representing a 2.8% increase compared to the same period of the year 2001. This indicator shows a higher increase in same stores than in the total, which is explained by the new openings included in the total figures. IV.5. Days of Inventory TABLE 7: DAYS OF INVENTORY (AVERAGE)
TOTAL STORES SAME STORES --------------------------------------------------------- ------------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL IQ IIQ IIIQ IVQ IH 9M TOTAL ------ ------- ------ ------ ------- ------ ------- ------- ------- ------ ----- ------- ----- ------ TOTAL D&S --------------- ------ ------- ------ ------ ------- ------ ------- ------- ------- ------ ----- ------- ----- ------ 2002 36.8 36.5 36.7 25.8 25.2 25.5 2001 30.9 31.0 31.0 23.4 22.4 22.9 % Change YoY 19.3% 17.6% 18.5% 10.3% 12.5% 11.5% GROCERIES --------------- ------ ------- ------ ------ ------- ------ ------- ------- ------- ------ ----- ------- ----- ------ 2002 34.1 33.4 33.8 23.6 23.0 23.3 2001 29.3 30.2 29.7 20.9 20.8 20.9 % Change YoY 16.5% 10.7% 13.5% 12.8% 10.6% 11.7% PERISHABLES --------------- ------ ------- ------ ------ ------- ------ ------- ------- ------- ------ ----- ------- ----- ------ 2002 11.0 11.1 11.1 7.6 7.6 7.6 2001 8.8 10.0 9.4 7.0 7.5 7.3 % Change YoY 25.3% 10.8% 17.2% 8.7% 0.8% 4.4% NON-FOOD --------------- ------ ------- ------ ------ ------- ------ ------- ------- ------- ------ ----- ------- ----- ------ 2002 94.8 109.2 101.5 68.3 76.7 72.2 2001 88.3 95.0 91.5 71.1 72.9 72.0 % Change YoY 7.3% 15.0% 10.9% -4.0% 5.2% 0.3%
At June 30, 2002, the consolidated average number of days of inventory increased by 18.5% compared to last year, from 31.0 days in 2001, to 36.7 days in 2002, involving mainly the non-food areas. IV.6. Shrinkage (% of Sales) TABLE 8: SHRINKAGE (% of SALES)
TOTAL STORES SAME STORES ---------------------------------------------------------- -------------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL IQ IIQ IIIQ IVQ IH 9M TOTAL -------- ------- ------ ------ ------ ------ ------- -------- ------- ------ ------ ------- ----- ------ TOTAL D&S ------------- -------- ------- ------ ------ ------ ------ ------- -------- ------- ------ ------ ------- ----- ------ 2002 1.76% 1.99% 1.88% 1.78% 2.05% 1.91% 2001 1.96% 1.76% 1.85% 2.00% 1.81% 1.90% % Change YoY -10.2% 13.4% 1.3% -11.2% 13.0% 0.5% SUPERMARKETS ------------- -------- ------- ------ ------ ------ ------ ------- -------- ------- ------ ------ ------- ----- ------ 2002 1.69% 1.60% 1.64% 1.75% 1.37% 1.55% 2001 1.34% 1.11% 1.22% 1.64% 1.37% 1.50% % Change YoY 25.6% 44.2% 35.0% 6.4% -0.3% 3.5% HYPERMARKETS ------------- -------- ------- ------ ------ ------ ------ ------- -------- ------- ------ ------ ------- ----- ------ 2002 1.78% 2.08% 1.94% 1.78% 2.22% 2.00% 2001 2.22% 2.04% 2.13% 2.13% 1.92% 2.02% % Change YoY 19.7% 2.1% -8.8% -16.5% 15.7% -1.2%
In the period January-June 2002, consolidated shrinkage as percentage of total sales increased by 1.3% compared to last year, from 1.85% in 2001 to 1.88 in the same period of 2002. This increase originates in the supermarket division as a result of the conversions into the Lider Vecino format. V. Additional Information V.1. D&S Financial Structure FIGURE 1: FINANCIAL STRUCTURE (SHORT V/S LONG DEBT)
IQ2001 IIQ2001 IIIQ2001 IVQ2001 IQ2002 IIQ2002 --------- ---------- ----------- ---------- --------- --------- Long Term 92.7% 89.4% 75.6% 78.4% 73.9% 59.2% Short Term 7.3 10.6% 24.4% 21.6% 26.1% 40.8%
At June 30, 2002, the debt/shareholders' equity ratio is 0.77 times, and the Company maintains total financial debt (debt with banks and financial institutions including bonds) equivalent to US$324.1 million, all Chilean pesos denominated, and there are no relevant obligations in US dollars. The main component of the financial debt corresponds to the Bonds issued in December 2000, representing a 35.0% of the total debt. Of the total debt, 40.8% corresponds to short-term obligations. TABLE 9: FINANCIAL DEBT AS OF JUNE 30, 2002
US$ Million % ---------------------- ---------------------- D&S Bonds 113.6 35.0% Banco Santiago 89.3 27.5% Banco Santander 47.9 14.8% Banco del Estado 25.4 7.8% Banco de Chile 21.0 6.5% Banco Citibank 8.4 2.6% Banco Scotiabank 4.2 1.3% Banco Bice 2.8 0.9% Other creditors 11.4 3.5% ------------------------------------------------------------------------ ---------------------- ---------------------- Total Financial Debt 324.0 100.0% ------------------------------------------------------------------------ ---------------------- ----------------------
TABLE 10: D&S CURRENT RISK RATINGS Instrument Rating Type Fitch Ratings Feller Rate Fitch IBCA Chile Chile USA -------------------- ------------- ------------- ----------- ---------- Stock National Level 2 Level 2 Bonds National AA- AA- Long Term Debt-Local International BBB+ Currency On May 2, 2002, Fitch Ratings Chile upgraded the local risk rating of D&S' bonds from A+ to AA- rating. On July 22, 2002, Feller Rate Clasificadora de Riesgo Ltda. upgraded the local risk rating of D&S' bonds from A+ to AA- rating. V.2. Means of Payment During the second quarter 2002, sales on Presto credit card represented a 7.3% of total Company sales, which compares favourably with a 6.0% share of sales in the same period of 2001, presenting a 21.7% increase compared to the same period of last year. In the period January-June 2002, sales on Presto card reached a 7.1% of total sales, compared to a 5.8% share in the same period of 2001, showing 22.4% growth over last year. TABLE 11: MEANS OF PAYMENT
2000 2001 2002 ----------------------------- ------------------------------- -------------------------------- IQ IIQ IIIQ IVQ IQ IIQ IIIQ IVQ IQ IIQ IIIQ IVQ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Cash 63.1% 62.1% 62.4% 62.3% 61.8% 61.2% 59.5% 57.9% 60.0% 59.2% Checks 19.0% 19.5% 19.1% 17.3% 15.6% 15.8% 15.5% 15.1% 14.6% 14.8% Credit Cards 12.3% 12.4% 12.2% 10.7% 10.9% 10.8% 11.3% 11.5% 10.0% 10.1% Presto Card 4.8% 5.3% 5.4% 5.1% 5.6% 6.0% 6.2% 6.8% 6.9% 7.3% Debit Card 0.1% 0.1% 0.3% 3.2% 5.5% 5.7% 6.9% 7.3% 7.8% 8.1% Other* 0.7% 0.6% 0.6% 1.4% 0.6% 0.5% 0.6% 1.5% 0.7% 0.5% ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% --------------------- *Other vouchers or means of payment.
V.3. D&S Financial Information TABLE 12: MAIN INDICATORS
JANUARY-JUNE JANUARY-JUNE % CHANGE 2002 2001 2002/2001 ------------------------ ----------------------- --------- % of % of THCH$ revenues THCH$ revenues % ----------- -------- ----------- -------- --------- NET REVENUES 487,616,723 100.00% 416,743,301 100.00% 17.01% GROSS INCOME 112,091,589 22.99% 93,062,900 22.33% 20.45% SELLING & ADMINISTRATIVE EXPENSES 91,078,329 18.68% 71,241,937 17.09% 27.84% OPERATING INCOME 21,013,260 4.31% 21,820,963 5.24% -3.70% NON-OPERATING INCOME (4,689,378) -0.96% (1,970,660) -0.47% 137.96% NET INCOME 13,900,716 2.85% 16,849,229 4.04% -17.50% INITIAL NET WORTH 277,234,939 251,291,652 10.32% NET INCOME/INITIAL SHAREHOLDERS' EQUITY 10.03% 13.41%
TABLE 13: CONDENSED BALANCE SHEETS AS OF JUNE 30, 2002 AND 2001
06.30.2002 06.30.2001 % CHANGE ----------- ----------- --------- THCH$ THCH$ 2002/2001 ----------- ----------- --------- CURRENT ASSETS 214,366,622 114,476,456 87.26% FIXED ASSETS 461,879,858 426,309,373 8.34% OTHER ASSETS 17,052,267 74,482,424 -77.11% ----------- ----------- ----- TOTAL ASSETS 693,298,747 615,268,253 12.68% =========== =========== ===== CURRENT LIABILITIES 264,161,349 160,688,963 64.39% LONG TERM LIABILITIES 137,515,877 186,086,896 -26.10% TOTAL DEBT 401,677,226 346,775,859 15.83% MINORITY INTEREST 485,866 351,513 38.22% NET WORTH 291,135,655 268,140,881 8.58% ----------- ----------- ----- TOTAL LIABILITIES 693,298,747 615,268,253 12.68% =========== =========== =====
TABLE 14: FINANCIAL RATIOS
% CHANGE --------- 06.30.2002 06.30.2002 2002/2001 ------------- ------------- --------- TOTAL DEBT THCH$ 401,677,226 346,775,859 15.83% FINANCIAL DEBT THCH$ 223,028,541 204,439,655 9.09% LIQUIDITY RATIO TIMES 0.81 0.71 ACID RATIO TIMES 0.52 0.33 TOTAL DEBT/TOTAL ASSETS TIMES 0.58 0.56 TOTAL DEBT/SHAREHOLDERS' EQUITY TIMES 1.38 1.29 FINANCIAL DEBT/SHAREHOLDERS' EQUITY TIMES 0.77 0.76 INTEREST EXPENSES COVERAGE TIMES 5.75 6.00 SHORT TERM LIABILITIES % 66% 46% LONG TERM LIABILITIES % 34% 54%
TABLE 15: PROFITABILITY RATIOS
06.30.2002 06.30.2001 ------------ ------------ RETURN OVER SHAREHOLDERS' EQUITY % 10.03% 13.41% RETURN OVER ASSETS % 4.01% 5.48% RETURN OVER OPERATIONAL ASSETS % 4.11% 6.23% EARNINGS PER SHARE $ 10.07 12.21 RETURN OF DIVIDENDS %
V.4. Market Share D&S MARKET SHARE In the period April-June 2002, D&S achieved 30.8% of market share countrywide, which compares favourably with D&S's market share of 29.1% in the same period of 2001. Twelve-months accumulated market share of D&S as of June 30, 2002 is 30.5%, that is, 1.9 percentage points higher than in the same period of 2001, when D&S accounted for 28.6% of the supermarket industry. The hypermarket formats (Lider, Lider Mercado and Lider Vecino) increased its market share in the country from 20.2% in the second quarter 2001 to a 25.0% of the market in 2002. The supermarket formats (Ekono and Almac) decreased its country market share from 8.9% in the second quarter 2001, to a 5.8% in 2002. This decrease is explained by the conversions into the Lider Vecino hypermarket format and the opening of new stores under the hypermarket format. FIGURE 2: D&S MARKET SHARE
I97 II97 III97 IV97 I98 II98 III98 IV98 I99 II99 III99 IV99 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ % Share 19.25% 20.15% 19.89% 21.63% 20.06% 21.32% 22.60% 27.51% 27.12% 28.12% 28.14% 28.89% I00 II00 III00 IV00 I01 II01 III01 IV01 I02 II02 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ % Share 27.57% 28.01% 28.27% 29.08% 27.92% 29.16% 29.63% 31.41% 29.81% 30.84% ________________ SOURCE: INE (National Bureau of Statistics), July 2002
Supermarket Industry Total Sales During the second quarter of 2002, supermarket industry sales totaled the amount of US$1,033 million (Ch$711 billion), which represents a 6.7% growth over the same period of 2001. This increase has not matched the 7.1% growth rate recorded in 1998 in comparison with the second quarter of 1997. Total sales of the Chilean supermarket industry for the period January-June 2002 amounted to US$2,052 million (Ch$1,412 billion), recording an 8.2% growth over the same period of the former year. D&S total sales growth is well above the industry figures (12.7% for the second quarter and 15.0% for the first half 2002). TABLE 16: D&S and SUPERMARKET INDUSTRY SALES
TOTAL STORES ---------------------------------------------------------------------------- IQ IIQ IIIQ IVQ IH 9M TOTAL ------- ------- --------- --------- --------- -------- --------- TOTAL D&S 2002 209,018 219,222 428,240 2001 178,386 194,122 372,508 % of Change YoY 17.2% 12.9% 15.0% No of Stores 55 58 58 MARKET SHARE 29.81% 30.84% 30.33% TOTAL SUPERMARKET INDUSTRY 2002 701,116 710,749 1,411,865 2001 638,871 665,715 1,304,586 % of Change YoY 9.7% 6.8% 8.2% No of Stores 630 633 633
FIGURE 3: MARKET SHARE HYPERMARKET FORMAT -- D&S V/S INDUSTRY
I97 II97 III97 IV97 I98 II98 III98 IV98 I99 II99 III99 IV99 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Hypermarket D&S 42.63% 40.19% 40.35% 44.14% 47.19% 45.61% 47.54% 55.59% 60.11% 58.50% 58.57% 61.00% Hypermarket Industry 15.46% 15.65% 15.28% 17.03% 16.63% 17.00% 17.34% 21.83% 22.89% 23.84% 23.74% 25.44% I00 II00 III00 IV00 I01 II01 III01 IV01 I02 II02 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Hypermarket D&S 61.77% 62.22% 65.00% 68.26% 70.51% 69.38% 71.52% 74.80% 78.02% 81.11% Hypermarket Industry 24.64% 26.30% 27.27% 29.24% 28.99% 30.08% 30.73% 32.97% 33.25% 36.11% ______________ SOURCE: INE, July 2002
FIGURE 4: SUPERMARKET INDUSTRY -- MARKET SHARE BY FORMAT
I97 II97 III97 IV97 I98 II98 III98 IV98 I99 II99 III99 IV99 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Hypermarket 15.46% 15.65% 15.28% 17.03% 16.63% 17.00% 17.34% 21.83% 22.89% 23.84% 23.74% 25.44% Supermarket 84.54% 84.35% 84.72% 82.97% 83.37% 83.00% 82.66% 78.17% 77.11% 76.16% 76.26% 74.56% I00 II00 III00 IV00 I01 II01 III01 IV01 I02 II02 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Hypermarket 24.64% 26.30% 27.27% 29.24% 28.99% 30.08% 30.73% 32.97% 33.25% 36.11% Supermarket 75.36% 73.70% 72.73% 70.76% 71.01% 69.92% 69.27% 67.03% 66.75% 63.89% ______________ SOURCE: INE, July 2002
FIGURE 5: D&S -- SHARE OF SALES BY FORMAT
I97 II97 III97 IV97 I98 II98 III98 IV98 I99 II99 III99 IV99 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Hypermarket 42.63% 40.19% 40.35% 44.14% 47.19% 45.61% 47.54% 55.59% 60.11% 58.50% 58.57% 61.00% Supermarket 57.37% 59.81% 59.65% 55.86% 52.81% 54.39% 52.46% 44.41% 39.89% 41.50% 41.43% 39.00% I00 II00 III00 IV00 I01 II01 III01 IV01 I02 II02 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Hypermarket 61.77% 62.22% 65.00% 68.26% 70.51% 69.38% 71.52% 74.80% 78.02% 81.11% Supermarket 38.23% 37.78% 35.00% 31.74% 29.49% 30.62% 28.48% 25.20% 21.98% 18.89% _______________ SOURCE: INE, July 2002
D&S and Industry Market Share by Format Within the Company, the hypermarket format has increased its share of total D&S sales from 69.6% in the second quarter 2001 to 81.4% in 2002. This increase results from the conversion of Ekono supermarkets into Lider Vecino hypermarkets and the new store openings, all of them under the Lider format. Second Quarter 2002 During the second quarter 2002, the hypermarket format continues to show market share increases in the Chilean industry, reaching a 36.1% compared to a 30.1% recorded in the same period of last year. Meanwhile, the supermarket format shows a decrease in market share, from 69.9% in the second quarter 2001, to a 63.9% in the current year. First Half 2002 As of June 30, 2002 the hypermarket format accounts for a 34.7% of the industry sales, and supermarkets represent a 65.3% of the total. The comparison with market share figures of the same period of last year (29.5% for hypermarkets and 70.5% for supermarkets) shows sustained growth of the hypermarket format in our country. V.5. Stores TABLE 17: GEOGRAPHIC DISTRIBUTION OF D&S STORES
REGION / LIDER LIDER LIDER TOTAL ALMAC EKONO TOTAL TOTAL MUNICIPALITY MERCADO VECINO HYPERMARKETS SUPERMARKETS D&S ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- ARICA 1 1 1 IQUIQUE 1 1 1 I Region 1 1 1 1 2 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- ANTOFAGASTA 1 1 1 CALAMA 1 1 2 2 3 II Region 2 2 2 2 4 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- LA SERENA 1 1 1 III Region 1 1 1 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- CALERA 1 1 1 QUILPUE 1 1 1 1 2 VINA DEL MAR 1 1 1 1 2 IV Region 2 2 3 3 5 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- CERRILLOS 1 1 1 EL BOSQUE 1 1 1 EST CENTRAL 1 1 1 INDEPENDENCIA 1 1 1 LA FLORIDA 2 1 3 3 LA REINA 1 1 1 LAS CONDES 1 1 1 5 6 7 LO BARNECHEA 1 1 1 1 2 MACUL 1 1 1 MAIPU 1 1 2 2 3 NUNOA 1 1 3 3 4 PROVIDENCIA 2 3 5 5 PUENTE ALTO 1 1 1 RECOLETA 1 1 1 SAN BERNARDO 1 1 1 SAN MIGUEL 1 1 1 1 2 SAN RAMON 1 1 1 VITACURA 1 1 1 1 2 Metropolitan Region XII 10 1 8 19 4 15 19 38 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- TALCA 1 1 1 VII Region 1 1 1 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- CONCEPCION 2 2 2 VIII Region 2 2 2 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- TEMUCO 1 1 1 1 2 IX Region 1 1 1 1 2 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- VALDIVIA 1 1 1 OSORNO 1 1 1 PUERTO MONTT 1 1 1 X Region 2 1 3 3 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- -------- COMPANY TOTAL 20 1 11 32 4 22 26 58 ----------------------- -------- ---------- --------- -------------- ------------- -------- -------------- --------
V.6. Historical Series TABLE 19: GROSS MARGIN (% of revenues)
IQ IIQ IIIQ IVQ ------- ------- ------- ------- CONSOLIDATED D&S 2002 22.6 23.3 2001 22.4 22.2 23.0 22.4 2000 21.6 22.3 21.6 21.4 1999 20.7 21.0 21.5 20.6 1998 22.1 22.6 23.2 17.6 1997 21.2 22.2 22.2 21.7
TABLE 20: RECURRING EXPENSES (% of revenues)
IQ IIQ IIIQ IVQ ------- ------- ------- ------- CONSOLIDATED D&S 2002 13.6 15.5 2001 12.6 14.1 13.3 12.1 2000 11.9 13.1 12.6 12.3 1999 12.9 14.4 13.5 14.1 1998 13.1 13.1 13.2 12.7 1997 12.0 12.6 13.1 11.2
TABLE 21: EBITDA MARGIN ($ of revenues)
IQ IIQ IIIQ IVQ ------- ------- ------- ------- CONSOLIDATED D&S 2002 8.5 6.8 2001 9.8 7.9 9.0 10.2 2000 9.9 8.9 8.9 8.8 1999 7.6 6.7 8.0 6.5 1998 8.4 8.4 7.7 2.8 1997 8.5 8.8 8.8 9.3
TABLE 22: OPERATING MARGIN (% of revenues)
IQ IIQ IIIQ IVQ ------- ------- ------- ------- CONSOLIDATED D&S 2002 5.1 3.5 2001 6.2 4.5 5.6 7.3 2000 6.1 5.3 5.5 5.8 1999 3.8 2.9 3.8 2.9 1998 5.7 5.9 5.0 -0.1 1997 6.0 6.1 5.9 6.7
V.7. Quarterly Results TABLE 23: QUARTERLY RESULTS
IQ IIQ IIIQ ------------------------------ ------------------------------- ---------------------- Ch$ Ch$ Ch$ millions % %YoY millions % %YoY millions % ---------- --------- --------- ----------- --------- --------- ----------- ---------- Sales 211,185 88.4% 17.6% 220,191 88.6% 12.7% Other revenues 27,836 0.9% 40.8% 28,404 1.8% 29.5% Net revenues 239,022 100.0% 19.9% 248,595 100.0% 14.4% ---------- --------- --------- ----------- --------- --------- ----------- ---------- Cost of sales 184,908 77.4% 19.6% 190,617 76.7% 12.8% Gross Income/Margin 54,113 22.6% 21.0% 57,978 23.3% 20.1% Recurring Operating Expenses 32,416 13.6% 29.1% 38,613 15.5% 26.5% Start-up Expenses 1,327 0.6% 100.0% 2,414 1.0% 100.0% Total Operating Expenses (SG&A) 33,743 14.1% 34.4% 41,026 16.5% 32.0% EBITDA 20,370 8.5% 3.8% 16,952 6.8% -1.5% ---------- --------- --------- ----------- --------- --------- ----------- ---------- Depreciation 8,144 3.4% 9.0% 8,165 3.3% 8.1% Total Operating Expenses 41,887 17.5% 28.6% 49,191 19.8% 27.3% Operating Income 12,226 5.1% 0.6% 8,787 3.5% -9.0% Financial Expenses (3,686) -1.5% 20.6% (2,800) -1.1% -9.2% Other Non-operating Income (Expenses) (110) 0.0% -108.0% 1,906 0.8% -30.2% Monetary Correction 170 3.6% -87.2% 2,172 2.4% 15.1% Non-Operating Income (3,796) -1.6% 134.2% (893) -0.4% 156.0% Income before Tax 8,430 3.5% -20.0% 7,894 3.2% -15.2% Income Tax (1,296) -0.5% -18.7% (1,251) -0.5% -16.8% Minority Interest (29) 0.0% -27.8% (18) 0.0% -44.4% Income 7,106 3.0% -20.2% 6,624 2.7% -14.8% Amortization of Goodwill 85 0.0% 2.2% 85 0.0% -2.0% Net Income 7,191 3.0% -20.0% 6,710 2.7% -14.6% ---------- --------- --------- ----------- --------- --------- ----------- ---------- _________________ (Exchange rate US$ =Ch$ 688.05) IH 9M TOTAL Ch$ Ch$ Ch$ millions % %YoY millions % %YoY millions % ---------- --------- --------- ----------- --------- --------- ----------- ---------- Sales 431,376 88.5% 15.1% Other revenues 56,241 11.5% 34.8% Net revenues 487,617 100.0% 17.0% ---------- --------- --------- ----------- --------- --------- ----------- ---------- Cost of sales 375,525 77.0% 16.1% Gross Income / Margin 112,092 23.0% 20.5% Recuring Operating Expenses 71,028 14.6% 27.7% Start-up Expenses 3,741 0.8% 100.0% Total Operating Expenses (SG&A) 74,769 15.3% 33.1% EB1TDA 37,322 7.7% 1.3% ---------- --------- --------- ----------- --------- --------- ----------- ---------- Depreciation 16,309 3.3% 8.5% Total Operating Expenses 91,078 18.7% 27.9% Operating Income 21,013 4.3% -3.7% Financial Expenses (6,486) -1.3% 5.7% Other Non-operating Income (Expenses) 1,797 0.4% -56.2% Monetary Correction 2,342 0.5% -27.2% Non-Operating Income (4,689) -1.0% 138.1% Income before Tax 16,324 3.3% -17.7% Income Tax (2,547) -0.5% -17.8% Minority Interest (47) 0.0% -35.2% Income 13,730 2.8% -17.7% Amortization of Goodwill 171 0.0% 0.0% Net Income 13,901 2.9% -17.5% ---------- --------- --------- ----------- --------- --------- ----------- ---------- _________________ (Exchange rate US$ =Ch$ 688.05)
V.8. Macroeconomics FIGURE 6: ECONOMIC ACTIVITY MONTHLY INDEX (IMACEC) [Chart shows % change in Economic Activity Monthly Index (IMACEC) from November 1998 to June 2002.]. FIGURE 7: RETAIL SECTOR SALES INDEX (SAME STORE SALES) [Chart shows % change in Retail Sales Index from November 1998 to June 2002.]. FIGURE 8: SUPERMARKET INDUSTRY -- SAME STORE SALE INDEX [Chart shows % change in Same Store Sales Index from November 1998 to June 2002.]. V.9. Second Quarter 2002: Economic Environment and Future Prospects Internal demand has faced difficulties for a rebound back from the steep drop experienced since the first half of 1998. Indeed, real retail sales, an indicator of private consumption available every month (private consumption is only released on a yearly basis) shows that, after a seasonal adjustment, sales of June 2002 were 3.2% below sales recorded on January 1998 and sales growth in twelve months has been less than 1% during the second quarter of the current year. The evolution of private consumption is explained by the expectations for growth in family income, financial conditions and the degree of confidence regarding employment and interest rates. In the last few years, news regarding the three determining factors of consumption have all been discouraging. First, the external impact in connection with the Asian crisis at the end of 1997, and the poor response in terms of internal policy at that time, ended up creating a strong recession and a steep increase in unemployment, which brought about a deterioration in the patrimony of individuals and small and mid-size companies. Second, the quick succession of external blows in the last four years (Russian, Brazilian and Argentine crisis, US recession and the recent deterioration in regional environment) have reduced the rates of our exports and have caused negative conditions in our currency exchange rates, finally having an adverse effect on growth rates of family income and spending. Third, the increasingly rigid measures introduced in the labor market and lower growth rates have resulted in a strong increase in unemployment rates and have reduced the confidence of families in terms of generating future income, all of which has a negative impact in consumption, especially in consumption of durable goods purchased on credit. Fourth, the low growth and confusing signs regarding the direction of future policies in terms of taxation and market regulations, have kept expectations and investment by the entrepreneurial sector at low levels (levels of investment in Chile today are less than 15% of investment amounts during the first quarter of 1998), finally having a negative impact on future growth prospects. Better growth expectations had been forecast until a month ago thanks to a faster than initially foreseen recovery in the United States and world economy, which in turn would increase dynamism of our exports and would improve currency exchange terms, thus contributing to lower unemployment rates and increased disposable income. However, the scandals in connection with financial accounting reports in the United States have brought about deterioration on the expectations of entrepreneurs and families in the northern country far beyond that expected, hindering the continuity of the recovery in progress at that moment. In our region, doubts regarding the stability of policies in Brazil have resulted in strong pressures on the currency exchange and increased financing costs in that country, heightening the risk of a rescheduling of its internal debt. This deterioration in Brazil has triggered a crisis in the whole region. In the light of this new world and regional economic scenario, the only encouraging news is the trade agreement in progress with the European Union and the increased likeliness of achieving a preferential trade agreement with the United States. Nevertheless, the effects of such agreements will be focused in the medium term, and, in order to get the best out of these deals, Chile has a long way to go and much progress to be made in terms of internal policies to improve quality and efficiency in our public organization and developing the required human resources (training and education). In the short term, that is, in the next two years, GDP and consumption growth in Chile, will be conditioned by the speed of improvement in the external environment and the ability of our country to move on and embrace a strategy to foster growth and employment, as opposed to the redistribution strategy prevailing in the political agenda of the last five years. As far as the world economic environment is concerned, given the strength and great resilience to take blows shown by the US economy, along with low interest rates, the recent depreciation of the dollar and its expansive government policy, this country should resume growth after the sluggish second and third quarters. In Latin America, reconstruction is bound to be a long-term task. With an external environment, which should improve in the coming year, permanence of internal stability and the opportunities of better access for our exports to the European Union and the United States, Chile should be capable of growing over a 4% during the next year, a figure which is quite higher than the 2.5% estimate for the current year. The current estimates for private consumption growth are 1.7% for 2002 and 3.7% for the year 2003. Vittorio Corbo Economist Pontificia Universidad Catolica de Chile VI. FECU VI.1. Balance Sheets - Assets Rut: 96439000-2 Period: 01-01-2001 to 12-31-2001 1.01.04.00 R.U.T. Expressed In: Thousand Chilean pesos 96439000-2 Type of Balance Statement: Consolidated
2.00 FINANCIAL STATEMENTS 2.01 BALANCE SHEETS month day year month day year 1.00.01.30 Type of currency: Chilean pesos from 01/01/2002 from 01/01/2002 1.00.01.40 Type of Balance Statement: Consolidated to 06/30/2002 to 06/30/2002 ASSETS CURRENT PRIOR ------------------ ------------------ 5.11.00.00 TOTAL CURRENT ASSETS 214,366,622 114,476,456 ------------------ ------------------ 5.11.10.10 Cash and cash equivalents 17,532,632 9,160,658 5.11.10.20 Time deposits 5.11.10.30 Marketable securities (net) 98,222 304,389 5.11.10.40 Sales debtors (net) 41,899,692 29,062,748 5.11.10.50 Notes receivable (net) 1,113,917 804,994 5.11.10.60 Sundry debtors (net) 66,810,178 6,750,429 Documents and accounts receivable from 5.11.10.70 related companies 1,278,215 169,356 5.11.10.80 Inventories (net) 77,024,273 61,362,240 5.11.10.90 Refundable taxes 2,428,517 1,677,149 5.11.20.10 Prepaid expenses 4,212,391 4,355,164 5.11.20.20 Deferred taxes 1,287,983 201,817 5.11.20.30 Other current assets 680,602 627,512 5.11.20.40 Leasing contracts (net) 5.11.20.50 Assets for leasing (net) 5.12.00.00 TOTAL FIXED ASSETS 461,879,858 426,309,373 ------------------ ------------------ 5.12.10.00 Land 126,615,475 118,934,449 5.12.20.00 Buildings and infrastructure 313,474,890 279,383,711 5.12.30.00 Machinery and equipment 115,854,858 98,829,385 5.12.40.00 Other fixed assets 57,322,213 51,107,290 Reserve for technical revaluation of fixed 5.12.50.00 assets 3,931,943 3,928,641 5.12.60.00 Depreciation (minus) (155,319,521) (125,874,103) 5.13.00.00 TOTAL OTHER ASSETS 17,052,267 74,482,424 ------------------ ------------------ 5.13.10.10 Investment in related companies 1,421,403 549,319 5.13.10.20 Investment in other companies 67,944 67,887 5.13.10.30 Goodwill 10,880,080 11,637,721 5.13.10.40 Negative goodwill (minus) (1,232,058) (1,646,606) 5.13.10.50 Long-term debtors 1,687,678 58160,038 Notes and accounts receivable from related 5.13.10.60 companies - long term 5.13.10.65 Long-term deferred taxes 5.13.10.70 Intangibles 5.13.10.80 Amortization (minus) 5.13.10.90 Others 4,227,220 5,714,065 5.13.20.10 Long-term leasing contracts (net) 5.10.00.00 TOTAL ASSETS 693,298,747 615,268,253 ------------------ ------------------
VI. FECU VI.2. Balance Sheets - Liabilities Rut: 96439000-2 Period: 01-01-2001 to 12-31-2001 1.01.04.00 R.U.T. Expressed In: Thousand Chilean pesos 96439000-2
Type of Balance Statement: Consolidated month day year month day year 1.00.01.30 Type of currency: Chilean pesos from 01/01/2002 from 01/01/2001 1.00.01.40 Type of Balance Statement: Consolidated to 06/30/2002 to 06/30/2001 LIABILITIES CURRENT PRIOR ------------------ ------------------ 5.21.00.00 TOTAL CURRENT LIABILITIES 264,161,349 160,688,963 ------------------ ------------------ 5.21.10.10 Debt with banks and financial institutions - 33,622,267 15,889,693 short term Debt with banks and financial institutions - 5.21.10.20 long term portion 50,673,578 1,610,581 5.21.10.30 Obligations with public (notes) -- -- Obligations with public - short term portion 5.21.10.40 (bonds) 1,523,330 1,524,685 5.21.10.50 Long term debt with maturity within a year 4,722,350 2,594,938 5.21.10.60 Dividends to be paid -- -- 5.21.10.70 Accounts payable 146,727,181 119,691,146 5.21.10.80 Documents payable -- -- 5.21.10.90 Sundry creditors 8,053,466 5,327,142 5.21.20.10 Documents and accounts payable to suppliers 10,331,787 6,503,140 5.21.20.20 Accruals 5,789,132 5,576,332 5.21.20.30 Witholdings 1,933,811 688,267 5.21.20.40 Income tax 669,869 25,167 5.21.20.50 Income received in advance 47,520 45,091 5.21.20.60 Deferred taxes -- -- 5.21.20.70 Other current taxes 67,058 212,781 5.22.00.00 TOTAL LONG TERM LIABILITIES 137,515,877 186,086,896 ------------------ ------------------ 5.22.10.00 Debt with banks and financial institutions 41,606,839 91,663,340 5.22.20.00 Obligations with public - long term (bonds) 79,141,954 79,266,887 5.22.30.00 Documents payable - long term 1,600,026 262,917 5.22.40.00 Sundry creditors - long term 9,680,251 11,626,614 5.22.50.00 Notes & accounts payable to related companies -- -- 5.22.60.00 Accruals 3,313,384 2,277,709 5.22.65.00 Deferred taxes - long term 1,878,501 626,190 5.22.70.00 Other long term liabilities 294,922 363,239 5.23.00.00 MINORITY INTEREST 485,866 351,513 ------------------ ------------------ 5.24.00.00 SHAREHOLDERS' EQUITY 291,135,655 268,140,881 ------------------ ------------------ 5.24.10.00 Capital paid 208,528,749 206,508,219 5.24.20.00 Capital revaluation reserve 1,251,172 3,096,563 5.24.30.00 Additional paid-in capital -- -- 5.24.40.00 Other reserves 1,270,484 1,269,416 Retained earnings (addition to codes 5.24.50.00 5.24.51.00 to 5.24.56.00) 80,085,250 57,266,683 5.24.51.00 Reserve for future dividends -- -- 5.24.52.00 Accrued income 66,184,534 40,417,454 5.24.53.00 Accrued loss (minus) -- -- 5.24.54.00 Income (loss) for the period 13,900,716 16,849,229 5.24.55.00 Provisory dividends (minus) -- -- 5.24.56.00 Accrued deficit development period -- -- 5.20.00.00 TOTAL LIABILITIES 693,298,747 615,268,253 ------------------ ------------------
VI. FECU VI.3. Income Statement F 96439000-2 F 01-01-2001 to 12-31-2001 1.01.04.00.R.U.T. Expressed In: Thousand Chilean pesos 96439000-2
Type of Balance Statement: Consolidated month day year month day year 1 Type of currency: Pesos from 01/01/2002 from 01/01/2001 1 Type of Balance Statement: Consolidated to 06/30/2002 to 06/30/2001 INCOME STATEMENT CURRENT PRIOR ----------------- -------------- 5.31.11.00 OPERATING INCOME 21,013,260 21,820,963 ------------------ ------------------ 5.31.11.10 GROSS MARGIN 112,091,589 93,062,900 5.31.11.11 Net revenues 487,616,723 416,743,301 5.31.11.12 Cost of sales (minus) (375,525,134) (323,680,401) 5.31.11.20 Selling and administrative expenses (minus) (91,078,329) (71,241,937) 5.31.12.00 NON-OPERATING INCOME (4,689,378) (1,970,660) ------------------ ------------------ 5.31.12.10 Financial/interest income 236,125 745,781 5.31.12.20 Income from investment in related companies 189,113 101,020 5.31.12.30 Other non-operating income 47,676 42,548 5.31.12.40 Loss from investment in related companies (minus) (32,601) -- 5.31.12.50 Amortization of goodwill (minus) (384,272) (376,961) 5.31.12.60 Financial expenses (minus) (6,486,074) (6,139,504) 5.31.12.70 Other non-operating expenses (minus) (601,343) (271,567) 5.31.12.80 Monetary correction (17,741) (347,048) 5.31.12.90 Currency exchange differences 2,359,739 4,275,071 5.31.10.00 INCOME BEFORE INCOME TAXES AND EXTRAORDINARY ITEMS 16,323,882 19,850,303 ------------------ ------------------ 5.31.20.00 INCOME TAX (2,547,258) (3,099,787) 5.31.30.00 EXTRAORDINARY ITEMS -- -- 5.31.40.00 NET INCOME (LOSS) BEFORE MINORITY INTEREST 13,776,624 16,750,516 5.31.50.00 MINORITY INTEREST (46,679) (72,077) 5.31.00.00 NET INCOME (LOSS) 13,729,945 16,678,439 ------------------ ------------------ 5.32.00.00 Amortization of negative goodwill 170,771 170,790 5.30.00.00 NET INCOME (LOSS FOR THE PERIOD) 13,900,716 16,849,229 ------------------ ------------------
VI. FECU VI.4. Cash Flows Statement 1.01.04.00 R.U.T. 1.00. Type of currency: Pesos 96.439.000-2
1.00 Type of Balance Statement: Consolidated month day year month day year 5.03 Method of Cash Flow I from 01/01/2002 from 01/01/2002 Statement to 06/30/200 to 06/30/2002 CASH FLOWS STATEMENTS-INDIRECT CURRENT PRIOR ---------------- ---------------- 5.50.00.00 NET CASH FLOWS FROM OPERATING ACTIVITIES 12,794,980 10,369,157 ------------- ------------ 5.50.10.00 Income (loss) for the period 13,900,716 16,849,229 5.50.20.00 Income on sale of fixed assets 54,168 11,214 5.50.20.10 (Gain) Loss on sale of fixed assets 54,168 11,214 5.50.20.20 Gain on sale of investments (minus) 5.50.20.30 Loss on sale of investments 5.50.20.40 (Gain) Loss on sale of other assets Charges (credit) to income statement which do not represent 5.50.30.00 cash flows 14,272,427 11,458,856 5.50.30.05 Depreciation for the period 16,309,165 15,035,204 5.50.30.10 Amortization of intangibles 5.50.30.15 Writeoffs and provisions 5.50.30.20 Gain from investment in related companies (minus) -189,113 -101,020 5.50.30.25 Loss from investment in related companies 32,601 5.50.30.30 Amortization of goodwill 384,272 379,961 5.50.30.35 Amortization of negative goodwill (minus) -170,771 -170,790 5.50.30.40 Net monetary correction 17,741 347,048 5.50.30.45 Net currency exchange difference -2,359,739 -4,275,071 5.50.30.50 Other credits to income statement which do not represent cash flows 5.50.30.55 Other charges to income statement which do not represent cash flows 248,271 246,524 5.50.40.00 Changes in assets affect cash flows (increase) decrease -10,647,326 -9,403,064 5.50.40.10 Sales debtors -2,249,859 2,118,349 5.50.40.20 Inventories -7,773,582 -9,964,860 5.50.40.30 Other assets -623,885 -1,556,553 5.50.50.00 Changes in liabilities affecting cash flows (increase) decrease -4,831,684 -8,619,155 5.50.50.10 Accounts payable related to the operation -3,566,374 -6,960,120 5.50.50.20 Interest payable -229,136 -250,162 5.50.50.30 Income tax payable (net) -923,076 1,959,605 5.50.50.40 Other accounts payable related to results other than operation 1,665,158 758,987 5.50.50.50 VAT and other similar taxes payable (net) -1,778,256 -4,127,465 5.50.60.00 Gain (loss) in minority interest 46,679 72,077 5.41.12.00 NET CASH FLOWS FROM FINANCING ACTIVITIES 10,909,744 4,348,625 ------------- ------------ 5.41.12.05 Proceeds from issuance of common stock 5.41.12.10 Proceeds from loans 45,939,871 21,397,590 5.41.12.15 Bonds 5.41.12.20 Proceeds from loans from related companies 5.41.12.25 Proceeds from other loans from related companies 5,598,637 5,288,879 5.41.12.30 Other sources of financing 5.41.12.35 Payment of dividends (minus) -13,875,900 -8,529,965 5.41.12.40 Withdrawals of capital (minus) 5.41.12.45 Repayment of loans (minus) -26,752,864 -13,705,642 5.41.12.50 Repayment of bonds (minus) -102,237 5.41.12.55 Repayment of loans from related companies (minus) 5.41.12.60 Repayment of other loans from related companies (minus) 5.41.12.65 Expenses from the issuance of common stock (minus) 5.41.12.70 Expenses from the issuance of bonds (minus) 5.41.12.75 Other expenses related to financing activities (minus) 5.41.13.00 NET CASH FLOWS FROM INVESTING ACTIVITIES -35,419,681 -42,999,152 ------------- ------------ 5.41.13.05 Proceeds from sale of property, plant and equipment 50,467 112,210 5.41.13.10 Proceeds from sale of long-term investments 5.41.13.15 Proceeds from sale of other investments 5.41.13.20 Decrease in loans to related companies 5.41.13.25 Decrease in other loans to related companies 5.41.13.30 Other proceeds from investment 194,122 1,722 5.41.13.35 Purchases of property, plant and equipment -34,988,322 -40,837,798 5.41.13.40 Payment of capitalized interest (minus) -424,200 -536,649 ------------- ------------
The information presented in this report has been prepared by the company based on the FECU (Uniform Code Statistics Form) submitted to the SVS (Superintendency of Securities and Insurance) on this date. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products and prices, and other factors detailed in the Company's filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward contained herein. [D&S Logo] A School of Service Ticker Symbols NYSE: DYS Bolsa de Comercio de Santiago : D&S Address Distribucion y Servicio D&S S.A. Avda. Presidente Eduardo Frei Montalva 8301, Quilicura Santiago de Chile Phone (56-2) 200 5301 Fax (56-2) 624 2979 E-mail info@dys.cl Website www.dys.cl [D&S LOGO] ------------------------------------------------------------------------------ MARK YOUR CALENDAR D&S S.A. (NYSE: DYS) Conference Call - IIQ 2002 Results Wednesday, August 28, 2002 11:30 a.m. Eastern Standard, NY Time 11:30 a.m. Santiago, Chile Time You are cordially invited to particpate in Distribucion y Servicio D&S S.A.'s (NYSE:DYS) Conference Call to discuss Second Quarter 2002 results with Mr. Nicolas Ibanez, CEO, and Mr. Miguel Nunez, CFO. There will be a question and answer session following the review. To participate please call (415) 217-0050 approximately ten minues before the call is scheduled to begin. The Conference Call will be broadcast live over the Internet, simply log on to the web at the following adress: Event Page Url http://www.firstcallevents.com/service/ajwz364941244gf12.html and send your questions by email to lbradford@dys.cl For those of you unable to participate, the webcast will be posted on the Company website www.dys.cl and on PRNewswire website www.prnewswire.com for 90 days. ------------------------------------------------------------------------------ DISTRIBUCION Y SERVICIO D&S S.A. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Santiago, Chile. DISTRIBUCION Y SERVICIO D&S S.A. By: /s/ Miguel Nunez ----------------------------- Chief Financial Officer Dated: September 3, 2002