CHILE - Falabella announced an organic investment plan totaling USD 4,200 million for the period 2019-2022, to continue building a digital and physical ecosystem that provides a full response to its customer’s demands, consolidate its presence in the Region; and broaden its commercial offering.

With this, the company seeks to simplify Latin Americans’ lives, by transforming their shopping experiences.

Of the total, 37% (USD 1,554 million) will be allocated to the development of IT and logistics projects. Through these investments, the company plans to improve customization by leveraging in Data Analytics and Artificial Intelligence; strengthen its cybersecurity and boost the growth of Linio, the regional marketplace acquired in August 2018.

34% of the plan (USD 1,428 million) will be invested in further consolidating the regional presence of all its business units. It involves the opening of five shopping centers and 95 stores mainly in areas with no presence, including the development of IKEA in Chile, Peru and Colombia.

At the same time, 29% (USD 1,218 million) will be allocated to optimize the existing network of stores and shopping centers through expansions and refurbishments to improve the positioning of own brands, continue developing Click & Collect's areas and enable a seamless experience in all its channels.

Specifically in 2019, Falabella will invest USD 1,084 million to, among other projects, open 23 stores, two shopping centers in the Region and a new distribution center for white goods in Peru that will serve all formats in that country.

Excluding currency variation (by using for 2019 the same exchange rate than in 2018), the plan is 11.2% higher than the plan announced the previous year and will be supported by additional operating expenses focused on the digital transformation of the company.

Falabella's CEO, Gaston Bottazzini, explained that “Falabella is making the investments today that will sustain the company's future growth. We are building an ecosystem of integrated services, allowing us to serve our customers throughout the region when they want and in the

format that suits them best. We are convinced that this will consolidate Falabella as the most relevant digital and physical ecosystem in Latin America.”