Ripley May 2012 Corp 1 Ripley Corp One of the biggest holdings - - PowerPoint PPT Presentation

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Ripley May 2012 Corp 1 Ripley Corp One of the biggest holdings - - PowerPoint PPT Presentation

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Ripley May 2012 Corp 1 Ripley Corp One of the biggest holdings of the department store business in Chile and Peru, and starting operations in Colombia PERU CHILE since1997 since 1956 16 Department stores 38 department stores

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SLIDE 1

Ripley

May 2012

Corp

1

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SLIDE 2

CHILE since 1956 PERU since1997 One of the biggest holdings of the department store business in Chile and Peru, and starting

  • perations in Colombia

Ripley

Corp

2

  • 38 department stores
  • 236 Th. m2 of selling space
  • 47 branches of Banco Ripley Chile
  • 1,152 Th. credit cards with debt
  • Loan portfolio: MUS$ 1,143
  • Strategic alliance with Mall Plaza
  • 16 Department stores
  • 128 Th. m2 of selling space
  • 16 branches of Banco Ripley Peru
  • 499 Th. credit cards with debt
  • Loan Portfolio: MUS$ 381
  • 40% ownership of Aventura Plaza

TOTAL REVENUES

Figures as of Dec. 2011 - USD/CLP: 519 CHILE 70% PERU 30%

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SLIDE 3

1956 First store in Santiago 1976 Credit business beginning 1985 First department store 1993 Ripley Parque Arauco biggest store in South America / New image positioning 1997 First store in Peru

56 years of history

Ripley

Corp

2000 Insurance brokerage and e-commerce 2003 Opening of Hong Kong office / local bond of UF 6.500.000 (MUS$257) 2005 IPO of Ripley Corp. 2007 First store outside Lima (Trujillo). First shopping mall of Aventura Plaza S.A. JV in Peru 2009 Acquisition of 22.5% of Nuevos Desarrollos S.A.(Plaza Alameda. Plaza Sur and future developments) 1997 First store in Peru 2010 Financial Statements under IFRS

3

2002 Bank Ripley Chile 2012 Ripley announces new operations in Colombia

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SLIDE 4

Main Shareholders

March 2012

  • Market Cap: MUS 2.155
  • Free Float: 34.5%

Market Information

Ripley

Corp

Calderón Volochinsky 53.0% Calderón Kohon Pension Funds Mutal Funds 2.3% Foreign Inv. 4.3% Others 14.0%

Free Float: 34.5%

4

  • Free Float: 34.5%
  • Daily Average Transactions (2011):

MUS$ 4.0

  • Local IPO: 2005

100 200 300 400 500 600 700 800

01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012

Ripley Stock Price

12.5% Pension Funds 13.9%

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SLIDE 5

Ripley

Corp

860 886 1,000 962 923 1,097 1,179

800 900 1.000 1.100 1.200 1.300

RETAIL BUSINESS

Revenues Evolution (USD M)

508 593

500 600 700 800 900

860

300 400 500 600 700

2005 2006 2007 2008 2009 2010 2011

5

RETAIL CHILE

38 Stores Selling Space 235,520 m2 26% Market Share*

RETAIL PERU

16 Stores Selling Space 128,292 m2 42% Market Share*

*Market Share (2011)

  • Chile: Ripley. Falabella and Paris
  • Perú: Ripley and Falabella

355 362 417 470 460 508

100 200 300 400

2005 2006 2007 2008 2009 2010 2011

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SLIDE 6

Ripley

Corp

286 412 454 445 404 384 400

FINANCIAL BUSINESS

Total Loans evolution (USD M)

381 576 684 894 1.011 695 755 743 2005 2006 2007 2008 2009 2010 2011 Credit Card Chile Bank Chile

6

CREDIT CHILE

Increasing the number of customers without increasing average debt per client More competitive credit card 1,152 thousand credit cards with debt

CREDIT PERU

Increasing the loan portfolio and the number of clients, with controlled risk Competitive interest rates 500 thousand credit cards with debt

193 231 317 349 286 331 381 2005 2006 2007 2008 2009 2010 2011 Peru

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SLIDE 7

Ripley

Corp

REAL ESTATE

Strategy based on developing new projects with high growth potential together with the industry leader

Chile

  • Nuevos Desarrollos S.A. (22.5% owned by the company)
  • 2 shopping malls
  • Mall Concepción (100% owned by the company)
  • Peru
  • Aventura Plaza (40% owned by the company)
  • 3 shopping malls

7

  • 90,000 m2 of construction
  • 41,000 m2 of selling space.

Chile Selling Space (m2) Selling Space (m2)* Ownership (%)

Marina Arauco 57,968 19,303 33,3% Mall del Centro Curicó 45,911 15,288 33,3% Mall Plaza Sur 74,583 16,781 22,5% Mall Plaza Alameda 57,355 12,905 22,5% Mall Concepción** 41,000 41,000 100%

Total Chile 276,817 105,278 Peru Selling Space (m2) Selling Space (m2)* Ownership (%)

Aventura Plaza Trujillo 44,114 17,646 40% Aventura Plaza Bellavista 76,460 30,584 40% Aventura Plaza Arequipa 55,000 22,000 40%

Total Peru 175,574 70,230 Total selling space 452,391 175,507

* Selling space x ownership *July 2012

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SLIDE 8

RETAIL BUSINESS

8

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SLIDE 9

Ripley

Corp

RETAIL BUSINESS

Attracting clients by adding new brands and increasing the value of current ones instead of appealing on price events. Optimizing price/quality ratio through better designs and materials.

9

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SLIDE 10

Ripley

Corp

RETAIL BUSINESS

Remodeling stores to improve the shopping experience.

San Isidro Peru Florida Center Chile Parque Arauco Chile

10

Lima Norte Peru

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SLIDE 11

Ripley

Chile

CHILE

4 New Stores 2012-2013

Costanera Center (2Q 2012)

  • Total m2 : 15,815

NEW STORES

Ripley Costanera Ripley Costanera

11

  • Biggest store of Ripley
  • Higher income segment

Concepción (3Q 2012)

  • Downtown Concepción
  • Total m2: 7,976

Ripley Costanera Ripley Costanera

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SLIDE 12

Ripley

Chile

CHILE

Mall Concepción

  • 3Q 2012
  • Total m2: 90,000
  • Selling Space m2: 41,000

NEW MALL

12

  • 2 mayor stores: Ripley and Jumbo
  • 85 smaller stores
  • 6 cinemas
  • 22-storry tower for comercial offices
  • Downtown Concepción
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SLIDE 13

Ripley

Peru

PERU

9 New Stores:

5 in 2012 and 4 in 2013

  • Chimbote (2Q 2012)
  • Total m2 : 3.810
  • NEW STORES

13

  • Santa Anita (3Q 2012)
  • Total m2 : 9.000
  • Jirón de la Unión (3Q 2012)
  • Total m2 : 3.400
  • San Borja (4Q 2012)
  • Total m2 : 9.000
  • Huancayo (4Q2012)
  • Total m2 : 5.550
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SLIDE 14

569,426 612.027 27.4% 27.2%

5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 50.000 150.000 250.000 350.000 450.000 550.000 650.000 750.000

2010 2011

Retail Revenues (M$) Retail Margin %

Ripley

Corp

CHILE

RETAIL BUSINESS

1,369,628 1,598,047 26.1% 25.4%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0%
  • 200.000
400.000 600.000 800.000 1.000.000 1.200.000 1.400.000 1.600.000 1.800.000 2.000.000

2010 2011 Retail Revenues (ThS/.) Retail Margin % Retail Revenues (M$) Retail Margin %

14

PERU

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SLIDE 15

FINANCIAL BUSINESS

15

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SLIDE 16

Ripley

Corp

FINANCIAL BUSINESS

Increasing the number of customers without increasing average debt per client. Launching new Ripley Mastercard in Chile:

Access to the Transbank network. Increasing the number of transactions.

16

Ripley Puntos: Loyalty program created to incentive the use of our credit card. Alliance with Lan Pass and Claro:

Access to new potential clients.

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SLIDE 17

392,000 385.558 162,357 170,590

20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000 180.000 260.000 280.000 300.000 320.000 340.000 360.000 380.000 400.000 420.000 440.000

2010 2011

Ripley

Corp

CHILE

FINANCIAL BUSINESS

2010 2011

Gross Loan Portfolio (M$) Financial Revenues (M$) 891,937 1,026,205 420,855 471,034

110.950 160.950 210.950 260.950 310.950 360.950 410.950 460.950
  • 200.000
400.000 600.000 800.000 1.000.000 1.200.000

2010 2011

Gross Loan Portfolio (ThS/.) Financial Revenues (ThS/.)

17

PERU

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SLIDE 18

% Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf Not Delayed

8,5% 77,7% 2,2% 77,2% 0,7% 85,5% 2,4% 72,4% 1,2% 78,3%

1-30

12,4% 11,5% 7,7% 10,5% 4,7% 8,2% 11,9% 10,3% 13,1% 7,6%

31-60

23,4% 3,3% 21,9% 3,8% 16,8% 2,6% 26,2% 4,8% 23,1% 4,0%

61-90

38,7% 2,2% 34,5% 2,5% 34,1% 1,4% 38,2% 3,9% 39,7% 2,9%

Ripley Falabella Cencosud Hites Walmart

STRONG RISK COVERAGE

INDUSTRY BENCHMARK

Ripley

Chile

61-90

38,7% 2,2% 34,5% 2,5% 34,1% 1,4% 38,2% 3,9% 39,7% 2,9%

91-120

53,7% 1,8% 47,3% 2,1% 62,7% 0,9% 49,4% 3,4% 58,7% 2,8%

121-150

70,4% 1,8% 60,2% 1,8% 76,3% 0,8% 58,1% 2,7% 70,7% 1,8%

151-180

86,4% 1,7% 60,7% 2,0% 98,0% 0,7% 71,8% 2,5% 82,9% 2,3%

Total

13,4% 100,0% 7,6% 100,0% 3,7% 100,0% 10,7% 100,0% 9,0% 100,0%

Provisions Loan Portf Total NPL $ NPL/Total Loans (%) Provisions/NPL

24.690 27.303 11.292 22.587 6,0% 2,3% 8,6% 7,0% 1,3 1,6 1,2 1,3 20.646 2,5 5,4% 385.559 1.174.273 412.307 131.351 321.339 51.726 43.109 31.258 14.107 28.864 18

Ripley is the only player that makes a significant provision on not delayed portfolio

Source: Companies financial statements as of Dec 2011 NPL: loans that are 90 days or more past due

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SLIDE 19

Ripley Colombia

19

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SLIDE 20

Ripley

Colombia

RIPLEY COLOMBIA

January 2012 Ripley announces new

  • perations in Colombia

Investment of USD 272 million for the next 4 years

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First store

  • Open in 2013
  • City: Bucaramanga
  • Shopping mall “El Cacique”

CEO Colombia :

  • Sergio Collarte (ex CEO Perú)
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SLIDE 21

Ripley

Colombia

RIPLEY COLOMBIA Why Colombia?

  • Positive economic outlook
  • Third largest population in

2.024 1.004

PGB Billones de US$ Nominal

191 112 46 40 29 29 17 Brasil Mexico Colombia Argentina Peru Venezuela Chile

Población (Millones)

GDP USD billions Population (millions)

21

Latinamerica

  • It has one of the lowest risk

classifications of the region

  • Responsible government institutions
  • Low development of the Department

Stores business model

1.004 351 285 283 199 154 Brasil Mexico ArgentinaVenezuela Colombia Chile Perú 1.087 595 182 160 157 138 129 Venezuela Argentina Brasil Colombia Perú Mexico Chile

Riesgo (EMBI) PIB per Cápita US$ Nominal

11.587 10.471 9.773 9.243 8.663 6.220 5.196 Chile Brasil Venezuela Mexico Argentina Colombia Peru

GDP per capita USD Risk (EMBI)

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SLIDE 22

Ripley

Colombia

BUSINESS PLAN

Retail and Financial Business The same products we offer in Chile and Peru Business Plan for Colombia: Total Revenues(retail+fin): US$1.000 M Nº credit cards: 500.000 EBITDA: US$ 110 M Estimated numbers for year 10: Owned and leased stores

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SLIDE 23

2011 Financials

23

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SLIDE 24

Ripley

Corp

FINANCIAL RESULTS

815.789 894.548 287.052 304.016

2010 2011

CORP

424.690 455.402 38,6% 38,1%

10, 0% 15, 0% 20, 0% 25, 0% 30, 0% 35, 0% 40, 0% 60. 000 160. 000 260. 000 360. 000 460. 000 560. 000

2010 2011

Gross Margin (M$) Gross Margin (%)

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Retail revenues (M$) Financial revenues (M$) 361.457 385.595 32,9% 32,2%

0, 0% 5, 0% 10, 0% 15, 0% 20, 0% 25, 0% 30, 0% 35, 0% 40, 0% 100. 000 200. 000 300. 000 400. 000 500. 000 600. 000

2010 2011

SG&A (M$) SG&A/Revenues %

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SLIDE 25

Ripley

Corp

FINANCIAL RESULTS

CORP

50.012 55.296 63.233 69.808 99.402 103.107 9,0% 8,6%

  • 20, 0%
  • 18, 0%
  • 16, 0%
  • 14, 0%
  • 12, 0%
  • 10, 0%
  • 8, 0%
  • 6, 0%
  • 4, 0%
  • 2, 0%
0, 0% 2, 0% 4, 0% 6, 0% 8, 0% 10, 0% 12, 0%
  • 20. 000
  • 70. 000
  • 120. 000
  • 170. 000
  • 220. 000
  • 270. 000

2010 2011 25 2010 2011 Net Income (M$) EBIT (M$) EBITDA (M$) Mg EBITDA

21.525 13.338 27.855 20.697 37.665 22.163 30.899 15.737 34.620

  • 10. 000
  • 20. 000
  • 30. 000
  • 40. 000
  • 50. 000
  • 60. 000

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Quarterly EBITDA ($M)

4.851 2.932 12.821 10.016 24.323 12.208 17.501 6.176 19.412

  • 5. 000
  • 10. 000
  • 15. 000
  • 20. 000
  • 25. 000
  • 30. 000
  • 35. 000
  • 40. 000
  • 45. 000
  • 50. 000

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Quarterly Net Income ($M)

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SLIDE 26

STRONG FINANCIAL POSITION Ripley Corp Ratios

Cash Total Debt Net Debt

(Short term below)

Non Banking

Ripley

Corp

26 Dec 2011 (CLP billion) Dec 2010 (CLP billion)

dec-11 dec-10 ROE 7,5% 7,3% ROA 3,4% 3,4% Financial debt / Equity 0,3 0,3 Current ratio 1,6 2,0

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SLIDE 27

Because…

  • It is a great player in the department store and financial retail business in Chile and Peru with

363.000m2 of selling space, and has a new business plan in Colombia.

  • Has a clear and strong long-term strategic plan.
  • All three economies (Chile, Peru and Colombia) are in good position to face the coming years.

Why invest in Ripley?

  • All three economies (Chile, Peru and Colombia) are in good position to face the coming years.
  • Peru has a low penetration in Retail business and Ripley is well positioned to capture growth.
  • Colombia has low development in the department store business model.
  • It has a diversified loan portfolio with a low amount of debt per client.
  • A profitable and growing real estate business focused in young malls.

27

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SLIDE 28

This presentation contains forward-looking statements. including statements

Disclaimer

Ripley

Corp

This presentation contains forward-looking statements. including statements regarding the intent. belief or current expectations of the Company and its

  • management. Investors are cautioned that any such forward-looking

statements are not guarantee of future performance and involve a number of risks and uncertainties including. but not limited to. the risks detailed in the company’s financial statements. and the fact that actual results could differ materially from those indicated by such forward-looking statements.

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SLIDE 29

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