Our efforts in 2007 were oriented towards consolidating our leading position in most areas. This involved strengthening the management team, improving our results by increasing the company’s competitiveness and growing by means of a strong investment plan. The latter was achieved by the purpose-driven actions of the Board of Directors and company management, each within its respective sphere of action, to secure value for our shareholders.

D&S has three solid businesses that have been strengthened in recent years. Our Retail division, as well as our Property and Financial divisions, combine professional management and a wide asset base, making it possible for each to achieve solid economic results.

In our Retail Division we have pursued a multiformat strategy that includes the Hiper LIDER "hypermarkets", LIDER Express supermarkets, Superbodega Acuenta stores and the Ekono convenience format. We also participate in the cash & carry or wholesale business through a minority interest in the company ALVI. Our commercial area has witnessed important changes aimed at improving the company’s productivity that allowed us to considerably reduce sales and administration expenses in 2007. In addition we have a well defined competitive strategy oriented towards delivering exceptional value based on every day low price, optimum product quality and complementary benefits such as our own credit card, house brands and customer loyalty programs.

A significant proportion of the more than US$250 million invested in new stores this year was implemented by our Property Division. In addition to opening supermarkets, we have added new "Espacio Urbano" shopping centers which, together with our other property developments, have made SAITEC one of the 3 largest real estate developers in the retail business in the country. Our real estate business encompasses not only our own supermarkets acting as anchor stores but more than 1,000 additional shops that are leased from us. These include department store chains, home improvement stores, cinemas, food courts, drug stores and countless smaller shops that together enable us to offer an attractive shopping experience for those who wish to find everything they need in one place.

Our Financial Services Division was also very active again this year. We invested US$ 180 million in credit operations with our clients, ending the year with a 19.7% growth in loans net of provisions. This unit reported growth of 22.4% in revenue and 29.2% in its operating results. During the year, leading-edge software was implemented in areas such as risk management and accounts administration. Today, we have 1.7 million credit clients and more than 27,000 businesses participating in Presto, the most widely used non-bank credit network in Chile.

Strengthening a positive workplace environment has been another priority. This year, special emphasis was given to fostering open and transparent communication with our workers. For the second year running we were chosen as one of the best companies to work for in Chile and as the retailer with the best workplace environment. This was based on a number of surveys conducted by the "Great Place to Work Institute," which applies a rigorous methodology across the globe, measuring variables such as fairness, credibility, respect, pride and camaraderie. Additionally, the company has offered opportunities for personal development to each of the 34,000 employees posted all over the country.

Corporate governance also was the focus of special attention. As a result we are one of the Chilean companies about to obtain the Sarbanes - Oxley (SOX) certification, a requirement of the United States’ Securities & Exchange Commission that sets the highest business standards. Also, our stores have been certified under the HAACP (Hazard Analysis and Critical Control Points) and ISO9001 programs. Furthermore, our Corporate Social Responsibility Area continued working for the benefit of the community, and we have again been chosen as one of the most socially responsible companies in Chile.

Another underlying priority has been growth. In 2007 we opened a total of 45 stores, 4 of which were hypermarkets located in the municipalities of Maipú, Melipilla, Coronel and Chillán. Seven supermarkets were also opened, in La Serena, Chillán, Santiago, Peñalolén, San Bernardo, La Florida and Puente Alto, plus 2 SúperBodegas Acuenta, one in Viña del Mar and one in Temuco. In addition, 32 Ekono stores were inaugurated in the Metropolitan Area of Santiago. Over the coming years the company will continue implementing its investment plan, which seeks to maintain our leadership in Chile while pursuing opportunities for expansion in other countries.

The failed merger with Falabella had sought to take our multiformat concept and supermarket management expertise to other countries in South America and to benefit from the economies of scale that the merger would have produced. The company will continue to seek out new growth options in the light of the solid operating platform it has implemented and perfected. This business platform is key to achieving sustained and profitable growth over time, within Chile and beyond.

The results obtained this year clearly demonstrate that the company’s efforts bear fruit. Total revenue reached US$3.835 billion and fiscal year profits grew by 23.7% to US$106 million. Operating Results rose by 38% and EBITDA by 24.7%, reaching US$ 317 million. The latter proves that our commitment to increasing efficiency and growth, coupled with our focus on value, are instrumental to succeed in this increasingly competitive market.