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

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

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Ripley June 2012 1 Ripley Corp One of the biggest holdings of the department store business in Chile and Peru. and starting operations in Colombia CHILE PERU since 1956 since 1997 39 department stores 16 department stores

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1

Ripley

June 2012

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CHILE since 1956

  • One of the biggest holdings of the department

store business in Chile and Peru. and starting

  • perations in Colombia

Ripley

Corp

PERU since 1997

2

  • 39 department stores
  • 248 Th. m2 of selling space
  • 47 branches of Banco Ripley Chile
  • 1,080 Th. credit cards with debt
  • Loan portfolio: MUS$ 1,169
  • Strategic alliance with Mall Plaza

TOTAL REVENUES

Figures as of March. 2012 – CLP/USD 489 CHILE 70% PERU 30%

  • 16 department stores
  • 128 Th. m2 of selling space
  • 22 branches of Banco Ripley Peru
  • 475 Th. credit cards with debt
  • Loan portfolio: MUS$ 361
  • 40% ownership of Aventura Plaza

Total Revenues

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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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Calderón Volochinsky 53.0% Calderón Kohon Pension Funds 14.5% Mutal Funds 2.2% Foreign Inv. 4.6% Others 13.3%

Main Shareholders

May 2012

  • Market Cap: MUS 1,861
  • Free Float: 34.5%

Market Information

Ripley

Corp

12.5%

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

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SLIDE 5

912 940 1,061 1,021 979 1,164 1,252 1,281

900 1.100 1.300 1.500

510 597 613

600 800 1.000 1.200

Ripley

Corp

RETAIL BUSINESS

Revenues Evolution (USD M)

300 500 700

2005 2006 2007 2008 2009 2010 2011 LTM Mar 12

365 365 421 474 463 510 597

200 400

2005 2006 2007 2008 2009 2010 2011 LTM Mar 12

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RETAIL CHILE

39 Stores Selling Space 248,351 m2 26% Market Share*

RETAIL PERU

16 Stores Selling Space 128,292 m2 44% Market Share*

*Market Share (March 2012)

  • Chile: Ripley. Falabella and Paris
  • Perú: Ripley and Falabella
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948 1,073 802 788 304 437 482 472 429 407 424 430

700 900 1.100 1.300 1.500 1.700 400 500 600 700 800 900 1.000

Ripley

Corp

FINANCIAL BUSINESS

Total Loans evolution (USD M)

611 726 737 802 788 739

100 300 500 700

2005 2006 2007 2008 2009 2010 2011 mar-12

Credit Card Chile Bank Chile 195 233 320 353 289 334 385 361

100 200 300

2005 2006 2007 2008 2009 2010 2011 mar-12

Bank Peru 6

CREDIT CHILE

Increasing the number of customers without increasing average debt per client More competitive credit card 1,080 thousand credit cards with debt

CREDIT PERU

Increasing the loan portfolio and the number of

  • clients. with controlled risk

Competitive interest rates 475 thousand credit cards with debt

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Ripley

Corp

REAL ESTATE

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

Chile

  • Nuevos Desarrollos (22.5%)
  • Inmobiliaria Viña del Mar (33.3%)
  • Mall Concepción (100%)

Chile

Selling Space (m2) Ownership (%) Marina Arauco 57,968 33.3% Mall del Centro Curicó 45,911 33.3% Mall Plaza Sur 74,583 22.5% Mall Plaza Alameda 57,355 22.5% Mall Concepción 1 41,000 100% Total Chile 276,817 Total Chile x Ownership 105,278

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Peru

  • Aventura Plaza (40%)

Total Chile x Ownership 105,278

Peru

Selling Space (m2) Ownership (%) Aventura Plaza Trujillo 44,114 40% Aventura Plaza Bellavista 76,460 40% Aventura Plaza Arequipa 55,000 40% Aventura Plaza Santa Anita 2 58,000 Total Peru 233,574 Total Peru x Ownership 93,430 Total Selling Space x Ownership 198,707

1 and 2 will open in 3Q 2012

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RETAIL BUSINESS

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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.

% of Sales Nº of brands Total Nº of brands (sales over US$50,000) Private Brands 22% 241 89 Licensee Brands 4% 15 12 Other Brands 74% 2,424 1,172

Sales 2011 - Chile

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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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EN

Ripley

Chile

CHILE

4 New Stores 2012-2013

Costanera Center (2Q 2012)

  • Selling space m2 : 12,831

NEW STORES

OPEN

11

  • Biggest store of Ripley
  • Higher income segment

Concepción (3Q 2012)

  • Downtown Concepción
  • Total m2: 7,976

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

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

Peru

Mall Aventura Plaza Santa Anita

40% owned by Ripley

NEW MALL

3Q 2012 Selling Space: 58,000 m2

PERU

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Selling Space: 58,000 m2 2 mayor stores 150 smaller stores 8 cinemas

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Ripley

Corp

RETAIL BUSINESS

RETAIL BUSINESS (Local Currency) 2010 2011 1Q11 1Q12 Y

Variation in retail sales 18.9% 7.5% 18.1% 11.3%

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RIPLEY CHILE

Variation in retail sales 18.9% 7.5% 18.1% 11.3% Variation in retail SSS 17.6% 7.8% 18.0% 9.3% Inventory Turnover 4.0 3.9 4.3 3.9

RIPLEY PERU

Variation in retail sales 10.4% 16.7% 21.0% 13.3% Variation in retail SSS 6.6% 5.8% 9.1% 12.3% Inventory Turnover 4.0 3.5 3.9 3.5

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FINANCIAL BUSINESS

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Ripley

Corp

FINANCIAL BUSINESS

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

3Q 2012 Access to the Transbank network. Increasing the number of transactions.

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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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Ripley

Corp

FINANCIAL BUSINESS

FINANCIAL BUSINESS ($M) 2010 2011 1Q11 1Q12 Credit Card Ripley Chile

Gross loan portfolio 392,000 385,558 378,977 361,356 Provisions 50,519 51,738 54,619 49,373 Provisions/Total Loan 12.9% 13.4% 14.4% 13.7% Number of credit cards with debt (Th) 1,180 1,152 1,118 1,080 Write-offs net of loans of write-offs recoveries 44,796 41,622 6,632 11,736

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Bank Ripley Chile

Gross loan portfolio 199,128 207,519 199,916 210,232 Provisions 15,555 15,556 15,502 14,855 Provisions/Total Loan 7.8% 7.5% 7.8% 7.1% Write-offs net of loans of write-offs recoveries 10,547 7,341 2,053 2,083

Bank Ripley Peru

Gross loan portfolio 153,531 201,054 158,759 179,145 Provisions 14,669 19,158 14,078 17,907 Provisions/Total Loan 9.6% 9.5% 8.9% 10.0% Number of credit cards with debt (Th) 501 499 487 475 Write-offs net of loans of write-offs recoveries 9,475 12,996 2,095 4,609

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Ripley Cencosud Falabella Hites Walmart % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf Not Delayed 9.2% 74.9% 2.2% 72.3% 0.7% 82.9% 2.6% 64.3% 1.1% 77.0% 1-30 11.9% 13.4% 8.3% 13.2% 4.7% 9.6% 10.8% 13.8% 12.5% 8.3% 31-60 22.5% 4.3% 24.1% 5.0% 16.7% 3.2% 25.3% 6.8% 22.6% 4.7% 61-90 39.8% 2.7% 37.3% 3.4% 34.1% 1.7% 36.7% 6.0% 40.9% 3.1%

STRONG RISK COVERAGE

INDUSTRY BENCHMARK

Ripley

Chile

61-90 39.8% 2.7% 37.3% 3.4% 34.1% 1.7% 36.7% 6.0% 40.9% 3.1% 91-120 53.5% 1.8% 48.5% 2.2% 62.9% 1.0% 48.0% 3.4% 55.8% 2.6% 121-150 67.2% 1.5% 59.3% 1.9% 76.5% 0.9% 55.8% 3.0% 73.2% 2.2% 151-180 85.4% 1.3% 60.1% 2.1% 96.4% 0.8% 68.3% 2.7% 84.8% 2.1% Total 13.7% 100.0% 8.6% 100.0% 4.1% 100.0% 12.2% 100.0% 9.1% 100.0% Provisions 49,373 31,024 48,363 15,120 27,607 Loan Portf 361,356 361,963 1,180,108 123,437 303,219 Total NPL $ 17,037 22,157 30,274 11,175 20,963 NPL/Total Loans (%) 4.7% 6.1% 2.6% 9.1% 6.9% Provisions/NPL 2.9 1.4 1.6 1.4 1.3 19

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

Source: Companies financial statements as of March 2012 NPL: loans that are 90 days or more past due

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RIPLEY COLOMBIA

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Ripley

Colombia

RIPLEY COLOMBIA

January 2012 Ripley announces new

  • perations in Colombia

Investment of USD 272 million for the next 4 years

Bucaramanga

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First store

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

CEO Colombia :

  • Sergio Collarte (ex CEO Perú)
  • 7 of the 13 main managers hired
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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)

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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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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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Ripley

Corp

CAPEX

CAPEX (USD M) 2012E 2013E 2014E TOTAL New Stores + Remodeling 82 60 64 206 Real Estate Business 58 13 12 83 IT and others 34 27 24 85 Total 174 100 100 374

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The total investment plan includes the operations in Chile, Peru and Colombia.

Working Capital 2012E 2013E 2014E TOTAL Gross loan portfolio investment 137 260 238 635

Total investment plan 311 359 338 1,008

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Because…

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

376,000m2 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.

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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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