Ripley Corp May 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
•38 department stores •16 Department stores • 236 Th. m2 of selling space •128 Th. m2 of selling space •47 branches of Banco Ripley Chile •16 branches of Banco Ripley Peru
•1,152 Th. credit cards with debt TOTAL REVENUES •499 Th. credit cards with debt •Loan portfolio: MUS$ 1,143 •Loan Portfolio: MUS$ 381 •Strategic alliance with Mall Plaza PERU 30% •40% ownership of Aventura Plaza
CHILE 70% Figures as of Dec. 2011 - USD/CLP: 519 2 Ripley Corp
56 years of history
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
2000 Insurance brokerage and e-commerce
2002 Bank Ripley Chile
2003 Opening of Hong Kong office / local bond of UF 6.500.000 (MUS$257)
2005 IPO of Ripley Corp.
2007 First store outside Lima (Trujillo). First shopping mall of Aventura Plaza S.A. JV in Peru
2009 Acquisition of 22.5% of Nuevos Desarrollos S.A.(Plaza Alameda. Plaza Sur and future developments) 2010 Financial Statements under IFRS
2012 Ripley announces new operations in Colombia 3 Ripley Corp
Main Shareholders Market Information March 2012 Foreign Inv. 4.3% Others Mutal Funds 14.0% 2.3% Calderón Volochinsky 53.0% •Market Cap: MUS 2.155 Calderón Kohon Pension Funds •Free Float: 34.5% 12.5 % 13.9% •Daily Average Transactions (2011): MUS$ 4.0 Free Float: 34.5%
•Local IPO: 2005 Ripley Stock Price 800
700
600
500
400
300
200
100
0 01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012 4 Ripley Corp RETAIL BUSINESS
Revenues Evolution (USD M)
1.300
900
1.200
800 1.100 1,179
700 1.000 1,097
600 900 1,000 962 500 800 923 860 886 593 700 400 508 470 460 600 300 417 355 362 500 200
400 100
300 0 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 RETAIL CHILE RETAIL PERU
38 Stores 16 Stores Selling Space 235,520 m2 Selling Space 128,292 m2 26% Market Share* 42% Market Share*
*Market Share (2011) •Chile: Ripley. Falabella and Paris •Perú: Ripley and Falabella 5 Ripley Corp FINANCIAL BUSINESS
Total Loans evolution (USD M)
445 454 384 412 404 400 286 381 1.011 894 695 755 743 349 331 576 684 317 286 193 231
2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011
Credit Card Chile Bank Chile Peru CREDIT CHILE CREDIT PERU
Increasing the number of customers without Increasing the loan portfolio and the number of increasing average debt per client clients, with controlled risk More competitive credit card Competitive interest rates 1,152 thousand credit cards with debt 500 thousand credit cards with debt
6 Ripley Corp REAL ESTATE
Strategy based on developing new projects with high growth potential together with the industry leader
Chile Peru •Nuevos Desarrollos S.A. (22.5% owned by the company) •Aventura Plaza (40% owned by the company) •2 shopping malls •3 shopping malls •Mall Concepción (100% owned by the company) •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 7 *July 2012 RETAIL BUSINESS
8 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 Ripley Corp RETAIL BUSINESS
Florida Center Remodeling stores to improve the Chile
shopping experience. Parque Arauco Chile San Isidro Peru
Lima Norte Peru
10 Ripley Chile NEW STORES
CHILE Ripley Ripley 4 New Stores Costanera Costanera 2012-2013
Costanera Center (2Q 2012) •Total m2 : 15,815 •Biggest store of Ripley
•Higher income segment Ripley Costanera Ripley Concepción (3Q 2012) Costanera •Downtown Concepción •Total m2: 7,976
11 Ripley Chile NEW MALL
CHILE Mall Concepción
•3Q 2012 •Total m2: 90,000 •Selling Space m2: 41,000 •2 mayor stores : Ripley and Jumbo •85 smaller stores •6 cinemas •22-storry tower for comercial offices •Downtown Concepción
12 Ripley Peru NEW STORES
PERU
9 New Stores: 5 in 2012 and 4 in 2013
•Chimbote (2Q 2012) •Total m2 : 3.810
•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
13 Ripley Corp RETAIL BUSINESS
30,0%
750.000CHILE 27.4% 27.2%
650.000 25,0%
550.000
20,0%
450.000 569,426 612.027
350.000 15,0%
250.000
10,0%
150.000
50.000 5,0% 2010 2011 Retail Revenues (M$) Retail Margin %
PERU
2.000.000 30,0%
1.800.000 26.1% 25.4%
25,0%
1.600.000
1.400.000
20,0%
1.200.000 1,598,047 1.000.000 1,369,628 15,0%
800.000
10,0%
600.000
400.000
5,0%
200.000
- 0,0% 2010 2011
14 Retail Revenues (ThS/.) Retail Margin % FINANCIAL BUSINESS
15 Ripley Corp FINANCIAL BUSINESS
Increasing the number of customers without increasing average debt per client.
Launching new Ripley Mastercard in Chile: Access to the Transbank network. Increasing the number of transactions.
Ripley Puntos: Loyalty program created to incentive the use of our credit card.
Alliance with Lan Pass and Claro: Access to new potential clients.
16 Ripley Corp FINANCIAL BUSINESS
CHILE 170,590 162,357 180.000 440.000
160.000
420.000
140.000
400.000
120.000
380.000
392,000 100.000 360.000 385.558
80.000
340.000
60.000
320.000
40.000 300.000
20.000 280.000
260.000 0 2010 2011
Gross Loan Portfolio (M$) Financial Revenues (M$) PERU
1.200.000 471,034
420,855 460.950
1.000.000 1,026,205 410.950
800.000 891,937 360.950
310.950
600.000
260.950
400.000
210.950
200.000
160.950
- 110.950 2010 2011 Gross Loan Portfolio (ThS/.) Financial Revenues (ThS/.) 17 Ripley Chile
STRONG RISK COVERAGE INDUSTRY BENCHMARK
Ripley Cencosud Falabella Hites Walmart % 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% 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 51.726 31.258 43.109 14.107 28.864 Loan Portf 385.559 412.307 1.174.273 131.351 321.339 Total NPL $ 20.646 24.690 27.303 11.292 22.587 NPL/Total Loans (%) 5,4% 6,0% 2,3% 8,6% 7,0% Provisions/NPL 2,5 1,3 1,6 1,2 1,3
Ripley is the only player that makes a significant provision on not delayed portfolio
Source: Companies financial statements as of Dec 2011 18 NPL: loans that are 90 days or more past due Ripley Colombia
19 Ripley Colombia RIPLEY COLOMBIA
January 2012 Ripley announces new operations in Colombia
Investment of USD 272 million for the next 4 years
First store Open in 2013 City: Bucaramanga Shopping mall “El Cacique”
CEO Colombia : Sergio Collarte (ex CEO Perú)
20 Ripley Colombia RIPLEY COLOMBIA
PoblaciónPopulation (Millones) (millions) 191
112
Why Colombia? 46 40 29 29 17
Brasil Mexico Colombia Argentina Peru Venezuela Chile PGBGDP Billones USD de US$billions Nominal Positive economic outlook 2.024 Third largest population in 1.004 Latinamerica 351 285 283 199 154 It has one of the lowest risk Brasil Mexico Argentina Venezuela Colombia Chile Perú
classifications of the region PIB per Cápita US$ Nominal GDP per capita USD RiesgoRisk (EMBI) (EMBI)
Responsible government institutions Peru 5.196 Venezuela 1.087
Colombia 6.220 Argentina 595 Low development of the Department Argentina 8.663 Brasil 182
Stores business model Mexico 9.243 Colombia 160
Venezuela 9.773 Perú 157
Brasil 10.471 Mexico 138
Chile 11.587 Chile 129 21 Ripley Colombia BUSINESS PLAN
Business Plan for Colombia:
Retail and Financial Business
The same products we offer in Chile and Peru
Owned and leased stores
Estimated numbers for year 10:
Total Revenues(retail+fin): US$1.000 M
Nº credit cards: 500.000 EBITDA: US$ 110 M 22 2011 Financials
23 Ripley Corp FINANCIAL RESULTS
CORP
304.016 287.052
815.789 894.548
2010 2011
Retail revenues (M$) Financial revenues (M$)
600.000 40,0%
560.000 38,6% 38,1% 40,0% 32,9% 32,2% 35,0%
500.000
35,0% 30,0% 460.000
400.000
25,0% 455.402 30,0% 360.000 424.690 385.595 300.000 361.457 20,0% 25,0%
260.000 15,0%
200.000
20,0%
10,0%
160.000
100.000 15,0%
5,0%
60.000 10,0% 0 0,0% 2010 2011 2010 2011 Gross Margin (M$) Gross Margin (%) SG&A (M$) SG&A/Revenues % 24 Ripley Corp FINANCIAL RESULTS
CORP 9,0% 12, 0% 10, 0%
270. 000 8,6% 8, 0%
6, 0%
4, 0%
220. 000
2, 0%
0, 0%
- 2, 0% 170. 000 103.107 99.402 - 4, 0%
- 6, 0%
- 8, 0%
120. 000
- 10, 0%
69.808 - 12, 0%
- 14, 0% 70. 000 63.233
- 16, 0% 50.012 55.296 - 18, 0% 20. 000 - 20, 0% 2010 2011 Net Income (M$) EBIT (M$) EBITDA (M$) Mg EBITDA
Quarterly EBITDA ($M) Quarterly Net Income ($M)
60. 000 50. 000
45. 000
50. 000
40. 000
35. 000
40. 000 37.665 34.620 30.899 30. 000 24.323 30. 000 27.855 25. 000 22.163 19.412 21.525 20.697 20. 000 17.501
20. 000 15.737 15. 000 12.821 12.208 13.338 10.016
10. 000 10. 000 4.851 6.176 5. 000 2.932
0 0 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 25 Ripley Corp
STRONG FINANCIAL POSITION Ripley Corp Ratios
Cash Total Debt Net Debt (Short term below)
Non Banking
Dec 2010 (CLP billion) Dec 2011 (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 26 Why invest in Ripley ?
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 . • 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 Ripley Corp
Disclaimer
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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