Letter from the
Chief Executive Officer

The year 2014 was yet another year of expansion for Liverpool. As part of our strategy for profitable growth, we added a total of five new stores this year, for a 6.0% increase in our commercial space. During this process, we reached a milestone in our Company’s history. We opened our one-hundredth store!

It is also important to mention that after twelve years without opening any Fábricas de Francia stores, in 2014, we restarted the growth of this brand by opening two stores in the Mexico City metropolitan area. Our objective is to increase our presence with a format that generates value by offering articles at moderate prices. We also opened 42 boutiques of international brands inseveral shopping centers, to reach 86 at the year-end.

We made progress in the development of the omni-channel strategy, by integrating all of our sales, logistics and communications platforms with our clients in an orderly fashion. The growing presence of the virtual channels with new functionalities and improvements in variety, as well as their operation and ease of use, has been added to the commercial offering represented by the stores. Two shopping malls were opened in the Cities of Toluca and Puebla, providing the Company with an additional 14.1% of rentable space in the evermore important real estate business.

The credit card operations continue to expand and to improve its productivity. We ended the year with 3.8 million clients, representing a portfolio of Ps. 28,695 million pesos for a 1.8% increase over the prior year, while income from this activity increased by 6.2%

As a result of all of the above, our expenses also increased significantly. However, at the same time, income grew, resulting in an increased market share, while we improved the solidity of the balance by reducing the Company’s net debt. This will permit us to continue to invest in our growth in a sound and productive manner.

During 2014, after twenty years of service to the Company, I reached retirement age. Those were years of expansion and consolidation for the Company, and years of personal and professional growth for me. Now, new and very capable hands are taking over the reins, for which we can look to the future with optimism.

To the shareholders, Board of Directors, suppliers, tenants and to each and every one of our collaborators, my most sincere appreciation.

Sincerely,

Jorge A. Salgado M.
Chief Executive Officer

December 31, 2014