To the Shareholders,

During 2016, Liverpool fulfilled its investment plan by opening ten new stores, starting up the Morelia Telephone Call Center (Spanish acronym, CAT), integrating sales channels through an enhanced version of our e-commerce site, all while confronting a complicated global environment in which our currency underwent volatility.

During the referenced year, total revenues reached Ps. 100,441 million, while net earnings reached Ps. 10,191 million, representing an increase of 10.0% and 10.6%, respectively, over 2015. The investment in capital projects was Ps. 7,958 million.

In July, Liverpool announced its intention to purchase stock (through a public offering) in the capital of Ripley Corp S.A., an important chain of department stores in South America. Should this be achieved, the partnership would provide access to the markets of Chile and Peru, both of which show good indications of growth and profitability.

Also, in August, we reported the acquisition of the Suburbia clothing stores in Mexico, operation which enables us, in a focused and separated way from Liverpool, to serve a rapidly expanding market.

Both of the aforementioned transactions are subject to their respective official authorizations.

Plans for 2017 include the opening of eleven stores: four Liverpool stores; seven Fábricas de Francia stores; a large shopping center, Galerias Tlaxcala; the beginning of work for the development of a modern Logistics Center located in the State of Mexico at the “Arco Norte” highway; and boosting the momentum of our Omnicanal strategy.

Today, Liverpool already has the resources with which to finance these projects and, as always, we will continue to observe our conservative policy of financial stability, as well as the special care of our credit portfolio.

Finding, attracting, forming and retaining our personnel, as well as our organizational development, are a maximum priority. We will continue to strengthen our human structure, methodically and systematically.

In these constantly changing times, we wish to reiterate our most sincere recognition and appreciation to our shareholders, collaborators, tenants, suppliers, financial institutions, business partners and clients for their unwavering confidence.