Operating Summary

Galerías Zacatecas

Results
Total revenue reached the amount of $66,247 million pesos, for a 12.9% increase over the prior year.

Total sales grew by 12.1% and same-store sales by 7.1%.

The dynamics of the Mexican credit market continued to expand during 2012. Liverpool participated actively in this area, growing its portfolio by 15.4%, while the income from such portfolio amounted to $5,353 million pesos, for a 16.9% increase over the prior year.

The Company’s non performing loans by more than 90 days is 2.8%; this fact leads us to practice a policy of caution when granting credit responsibly, based on the respective credit history analysis.

Real estate income grew to $2,116 million pesos, which is 22.2% higher than the prior year.

Operating expenses increased by 14.0% during the year, affected primarily by the pre-operating expenses related to the growth plan.

Operating profit amounted to $10,306 million pesos, which is 11.7% more than the prior year.

Earnings before interests, taxes, depreciation and amortization (EBITDA), amounted to $11,769 million pesos, or 12.0% more than in 2011.

Financing expenses increased by 16.3% during the year. The total cost-bearing debt at the year-end amounted to $12,921 million pesos, which represents a total debt to EBITDA ratio of 1.1 times.

Net profits reached the amount of $7,198 million pesos, for a growth of 10.0% over the prior year.

Dividends
The General Shareholders’ Meeting held on March 8, 2012 declared a dividend in the amount of $899 million pesos on the 1,342,196,100 shares representing the Company’s capital stock.

Sustainability
Liverpool works to provide well-being for its associates, for the community it serves, and for the environment in general.

To this end, we have brought the benefits of our Liverpool Virtual University even closer to our associates and their families, so as to encourage learning and development to generate opportunities for the betterment of all. Also, in the area of well-being and health, we imparted informative programs and promoted vaccination campaigns instituted by the Mexican Social Security Institute.

Several initiatives have also been established to encourage healthy co-existence with the environment; these include the saving of energy; the solar-heating of water; the recycling of water; the recovery of garbage waste; and the environmental sensitivity towards the protection and planting of native flora in the exterior landscaping of our stores, shopping malls and developments.

Final Considerations
Constant innovation is our best ally in maintaining close ties that project the Company as being state-of-the-art and always on the move.

We wish to extend our appreciation to the shareholders, suppliers, tenants and associates for having placed their trust in us and for encouraging Liverpool’s development. We especially wish to thank our clients for allowing us to serve them. We shall continue to innovate constantly, to surpass their expectations and to bring us ever closer to them.


Sincerely,

The Board of Directors
December 31, 2012