Post on 14-Jul-2020
BTG Pactual
June 2013
1
Celfín
RipleyCorp
PERUsince 1997
COLOMBIAsince 2013
Presence in 3 countries with strong economic outlook
3 Stores
14,750 m2 of selling space
10 stores confirmed
21 stores
153,981m2 of selling space
2
CHILEsince 1956
Financial information as of Mar 2013. CLP/USD: 472
CHILE
68%
PERU
32%
Total Revenues LTM:
USD 2,775 M
153,981m2 of selling space
Total Loans: US$371 million
463 thousand credit cards with debt
Participation in 4 shopping centers
41 stores
258,212 m2 of selling space
Total Loans: US$1,244 million
1,053 thousand credit cards with debt
Participation in 6 shopping centers
1956 First store in Santiago
1976 Credit business beginning
1985 First department store
2000 Insurance brokerage and e-commerce
1993 Ripley Parque Arauco � biggest store in South America / New image positioning
1997 First store in Peru
RipleyCorp 57 years of history
2000 Insurance brokerage and e-commerce
2003 Opening of Hong Kong office / local bond of UF 6,500,000 (MUS$257)
2005 IPO of Ripley Corp.
2007 First store outside Lima (Trujillo). First shopping mall of Aventura Plaza S.A. JV in Peru
2009 Acquisition of 22.5% of Nuevos Desarrollos S.A.(Plaza Alameda. Plaza Sur and future developments)
2010 Financial Statements under IFRS
3
2002 Opening of Ripley Bank Chile
2013 First stores in Colombia
Ripley Parque Arauco
Bank Ripley
Calderón Volochinsky
53,0%
Calderón Kohon12,5%
Pension Funds14,5%
Mutual Funds2,4%
Foreign Inv.5,9% Others
11,8%
Main ShareholdersApr 2013
•Market Cap: US$ 2 bn
•Free Float: 34.5%
•Daily Average Transactions (2013): MUS$ 2.7
Market Information
RipleyCorp Shareholders and market information
Free Float: 34.5%
4
MUS$ 2.7
•Local IPO: 2005
•P/E: 24.8
•P/Book: 1.23Calderon Family
• Company founded by Calderon Family
• 3 members of the family are on the board
and 1 member is the CEO of Ripley.
• Ripley represents the family’s main
investment.Stock price as of May 31st, 2013
Increasing sales
Focusing on margins
RETAILBUSINESS
5
Focusing on margins
5,122
5,5065,780 5,899
4.500
5.000
5.500
6.000
6.500
2010 2011 2012 mar-13
RipleyChile
Sales(US$)/m2
Increasing sales with focus in margins
1,2061,297
1,428 1,435
600
700
800
900
1.000
1.100
1.200
1.300
1.400
2010 2011 2012 mar-13
Sales(US$ million)
2010 2011 2012 mar-13
6
2010 2011 2012 mar-13
526615
682 696
250
350
450
550
650
750
850
2010 2011 2012 mar-13
4,960 5,024
5,2795,099
4.400
4.600
4.800
5.000
5.200
5.400
2010 2011 2012 mar-13
Sales(US$)/m2Sales(US$ million)
March Figures are LTM
28.9%
26.9%
25.1%
23.4%
27.9%
29.6%
23.9%
26.1%
20,0%
22,0%
24,0%
26,0%
28,0%
30,0%
32,0%
2Q11 2Q12 3Q11 3Q12 4Q11 4Q12 1Q12 1Q12
Improving demand estimations, considering volume and the mix of products
Adding new brands and increasing the value of current ones
RipleyChile
Retail Margin/Retail Sales
Increasing sales with focus in margins
2Q11 2Q12 3Q11 3Q12 4Q11 4Q12 1Q12 1Q12
7
Increasing the number of collections per season
27.2%
26.3%
20.9%
21.6%
28.2%
26.8%
21.3%
25.3%
20,0%
21,0%
22,0%
23,0%
24,0%
25,0%
26,0%
27,0%
28,0%
29,0%
2Q11 2Q12 3Q11 3Q12 4Q11 4Q12 1Q12 1Q12
Retail Margin/Retail Sales
Increase loan portfolio
Controlled risk
FINANCIAL BUSINESS
8
Main Challenge:Increase portfolio.
Launching new RipleyMastercard in Chile.
New IT system, allowing automatic revolving in Chile.
RipleyChile
Total Loans (US$M)
Loan Portfolio
831 817 830 788
422 440 458 456
400
600
800
1.000
1.200
345
396 403371
200
250
300
350
400
450
500
550
600
2010 2011 2012 mar-13
Bank Peru
9
Expand financial product priorities in Peru.
200
2010 2011 2012 mar-13
Credit Card Chile Bank Chile
4,8%
6,0%6,4%
5,4%4,7%
5,4%4,9%
4,4%4,4%
1Q 2Q 3Q 4Q
Decrease in NPL as a percentage of the loan portfolio in Chile, related to the selective process of lending, together with the positive macroeconomic indicators.
RipleyChile
Credit Card: NPL/ Total Loan Portfolio
Non Performing Loans with controled levelsin Chile and Peru
1Q 2Q 3Q 4Q2011 2012 2013
10
Increase in NPL as a percentage of the loan portfolio in Peru, related to an increase in cash advance products.
NPL: loans that are 90 days or more past due
2,9% 3,2% 3,5%4,2%4,0% 3,8% 3,8% 3,9%
4,3%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
1Q 2Q 3Q 4Q
2011 2012 2013
Ripley Bank Peru: NPL/ Total Loan Portfolio
% Provisions
% Loan Portf
% Provisions
% Loan Portf
% Provisions
% Loan Portf
% Provisions
% Loan Portf
% Provisions
% Loan Portf
Not Delayed 9.4% 75.5% 2.2% 76.5% 0.8% 82.5% 2.9% 62.8% 1.2% 82.1%1-30 9.4% 13.5% 9.1% 12.0% 6.0% 9.7% 12.8% 13.4% 12.8% 6.7%
31-60 18.3% 4.0% 26.9% 4.2% 18.8% 3.1% 29.2% 6.7% 22.9% 3.4%
61-90 33.7% 2.5% 42.1% 2.6% 36.3% 1.7% 39.1% 5.7% 40.1% 2.3%
91-120 47.7% 1.7% 54.6% 1.7% 62.0% 1.0% 48.3% 4.2% 52.2% 1.8%
121-150 62.2% 1.5% 66.9% 1.5% 71.5% 1.0% 57.4% 4.1% 68.1% 1.8%
INDUSTRY BENCHMARK
RipleyChile
Strong risk coverage for credit card businessin Ripley Chile
151-180 82.2% 1.2% 67.7% 1.5% 90.0% 0.9% 70.7% 3.2% 77.3% 1.8%
Total 12.7% 100.0% 7.9% 100.0% 4.6% 100.0% 14.3% 100.0% 7.1% 100.0%Provisions 46,904 33,996 43,775 17,260 19,341
Loan Portf 372,069 429,525 953,839 120,447 272,404
Total NPL $ 16,535 20,134 27,855 13,713 14,842NPL/Total Loans (%) 4.4% 4.7% 2.9% 11.4% 5.4%Provisions/NPL 2.8 1.7 1.6 1.3 1.3
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Ripley is the only player that makes a significant provision on not delayed portfolio
Source: Companies financial statements as of March 2013.
NPL: loans that are 90 days or more past due
Focusing in Peru and Colombia the opening of new stores
2012-2015 high investment period
EXPANSIONPLAN
period
Investment in “young malls”
12
RipleyCorp
Increasing 80% our selling space in 4 years
68
102
Chile Peru Colombia
Department Stores (m2) /Population (Th)
Lower penetration of the department store business in Peru and Colombia explains the focus of Ripley’s expansion plan.
13
Nº of stores Selling Space (m2)
2011 2015 Var%New Stores
2011 2015 Var% New m2
Chile 38 44 16% 6 235,520 286,431 22% 50,911
Peru 15 35 133% 20 124,428 248,154 99% 123,726
Colombia 0 15 15 0 112,270 112,270
Ripley Corp 53 94 77% 41 359,948 646,626 80% 286,678
RipleyCorp
New stores (m2)
Important recent investments in early stage of maturity
4.390 19.522 23.078 8.00022.372
24.08730.039
62.59826.800
82.960
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
2009-2011 2012 2013 2014-2015
Chile Peru Colombia (m2)
5
7
12
22
Nº of stores
50.675
29.025 33.07522.000
20.000
14.000
0
20000
40000
60000
80000
100000
120000
140000
2009-2011 2012 2013 2014-2015Chile Peru (m2)
14
Adding 58% of new m2 in stores from 2012 to 2015New shopping malls through Nuevos Desarrollos and Aventura Plaza
Chile Peru Colombia (m2)
1
3
2
3
Nº of malls
New malls (m2)
Los Ángeles 2Q 2013•6,170 m2
Plaza Egaña 3Q 2013•10,380 m2
Copiapó 4Q 2013
Piura 2Q 2013•5,410 m2
ICA 2Q 2013•5,500 m2
Other 3 stores 2H 2013
Bucaramanga 2Q 2013• 4,400 m2
Centro Mayor 2Q 2013• 4,700 m2
Calima 2Q 2013
RipleyCorp
2013 New Stores and Shopping Malls
15
Copiapó 4Q 2013•6,500 m2
Mall Plaza Egaña 3Q 2013•22.5% of Ripley•80,000 m2
Mall Plaza Copiapó 4Q2013•22.5% of Ripley•37,000 m2
Other 3 stores 2H 2013•18,020 m2
Calima 2Q 2013• 5,500 m2
Neiva 2H 2013• 5,200 m2
m2 estimated
RipleyCorp
Book Value in Ripley : US$ 408 million
Developing shopping malls with high growth potential
ChileSelling
Space (m2)Ownership
(%)Opened
Marina Arauco 58,000 33.3% 1999
Mall del Centro Curicó 46,000 33.3% 2006
Mall Plaza Sur 71,000 22.5% 2008
Mall Plaza Alameda 60,000 22.5% 2008
Mall Plaza Mirador Bío Bío 43,000 22.5% 2012
Mall Concepción 41,000 100% 2012
16
Aventura Plaza Santa Anita
Mall Concepción 41,000 100% 2012
Total Chile 319,000
Total Chile x Ownership 114,782
PeruSelling
Space (m2)Ownership
(%)Opened
Aventura Plaza Trujillo 58,000 40% 2007
Aventura Plaza Bellavista 67,000 40% 2008
Aventura Plaza Arequipa 59,000 40% 2010
Aventura Plaza Santa Anita 50,000 40% 2012
Total Peru 234,000
Total Peru x Ownership 93,600
Total Selling Space x Ownership 208,382
RipleyCorp
“Young Malls” with potential to increase their returns
Total m2 x ownership
Nº Shopping malls
Years old (average)
Projects (start up face)
LandsInvestment
M$Net profit LTM M$
Returns LTM Returns 2012
Inm Viña del Mar 34.632 2 10 42.253 5.798 13,7% 13,4%
Nuevos Desarrollos 39.150 3 3 4 3 62.724 1.318 2,1% 1,9%
Mall Concepción 41.000 1 0 50.004 -264 -0,5% -3,6%
Aventura Plaza 93.600 4 3 1 1 36.814 1.855 5,0% 4,6%
TOTAL 208.382 10 3 5 4 191.795 8.706 4,5% 3,5%
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Aventura Plaza Santa Anita
•Except Inm Viña del Mar, the malls do not do a annual asset revaluations and present assets and results at a historical value. Profitability of projects are above 13% real.
•Several projects and lands with strong investments. Potential profitability in the future.
•3 shopping malls recently open at the end of 2012.
RipleyCorp
CAPEX Ripley Corp
CAPEX PLAN 2013 – 2015 (New stores, remodeling stores, IT and others)
Corp Chile Peru Colombia Total
Capex US$ M 2013-2015
40 50 130 130 350
New Stores 2013-2015
4 15 15 34
New Malls 4 3 7
*Mall - Projects with Mall Plaza
18
New Malls 2013-2015
4 3 7
Opening a new country with low
RIPLEY COLOMBIA
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country with low penetration in department stores and financial business
RipleyColombia
First 10 stores confirmed• Grupo Exito - “Viva” Shopping malls 6 stores
• Inversiones La 14 S.A. – Calima Bogota• Bucaramanga, Centro Mayor and Fontanar Chía
Administration
Starting in Colombia in 2013 with retail and financial business
20
Administration• CEO Sergio Collarte (ex CEO Peru) • Top management hired and over 1,000 employees.
Estimation for Colombia at year 10• Total Revenues (retail+fin): USD 1,000 M• Nº credit cards: 500,000• EBITDA: USD 110 M• Selling space: 200,000 m2
RipleyColombia
Bucaramanga1H 2013Selling Space: 4,400 m2
Centro Mayor (Bogota)1H 2013
Bucaramanga
4 Stores for 2013
New Stores in Colombia for 2013
COLOMBIA
OPEN
OPEN
21
1H 2013Selling Space: 4,700 m2
Calima (Bogota)1H 2013Selling Space: 5,500 m2
Neiva2H 2013Selling Space: 5,300 m2
Centro MayorBogotá
OPEN
Calima
15000
20000
25000
RipleyColombia
Bucaramanga
EBITDA 1Q2012 and 1Q2013
With negative impact on results at the beginning
COLOMBIA
-5000
0
5000
10000
Ripley Chile + Bank
Ripley Peru Ripley Corp with out Colombia
Ripley Colombia Ripley Corp
M$
1Q2012 1Q2013
22
Calima
Appendix
23
68.916
RipleyCorp Low Leverage per business
Real Estate Business
Retail BusinessInventories, property assets, payable accounts and others
Leverage (FND/Equity)
0,0391,749
629,589
237,840
43,565 43,565
Assets Liabilities + Equity
177,080245,996
68.916
Assets Liabilities + Equity
Financial BusinessCAR loan porfolio, Banks, equity and financial debt
24
Real Estate BusinessInvestment in malls and stores.
0,4
2,9
Figures in million pesos
186,053
732,202
81,536
627,685
Assets Liabilities + Equity
RipleyCorp Summary 1Q 2013 Results
$MM % Rev $MM % Rev
Revenues of Non-Banking Operations 259.603 88,4% 248.253 87,7% 11.350 4,6%
Revenues of Banking Operations 34.213 11,6% 34.706 12,3% -494 -1,4%
Total Revenues 293.816 100,0% 282.960 100,0% 10.856 3,8%
COST of Non-Banking Operations -169.690 -65,4% -169.213 -68,2% -476 0,3%
COST of Banking Operations -12.195 -35,6% -11.467 -33,0% -728 6,4%
Total COGS -181.884 61,9% -180.680 63,9% -1.204 0,7%
GROSS PROFIT 111.931 38,1% 102.280 36,1% 9.652 9,4%
SG&A Expenses -103.368 -35,2% -94.329 -33,3% -9.038 9,6%
Ripley Corp (CLP million)1T2013 1T2012
Var CLP Var % CLP
25
SG&A Expenses -103.368 -35,2% -94.329 -33,3% -9.038 9,6%
EBIT 8.563 2,9% 7.950 2,8% 613 7,7%
Financial income 916 0,3% 858 0,3% 58 6,7%
Financial costs -5.335 -1,8% -5.186 -1,8% -150 2,9%
Other subsidiaries income (expenses) 2.599 0,9% 1.855 0,7% 743 40,1%
Other non-operating income (expenses) 268 0,1% -218 -0,1% 487
Exchange differences -198 -0,1% 755 0,3% -954
Inflation-indexed monetary units -410 -0,1% -337 -0,1% -73 21,6%
Other non-operating banking expenses -139 0,0% -69 0,0% -71 103,2%
Non-operating Income -2.300 -0,8% -2.340 -0,8% 40 -1,7%
Income before taxes 6.264 2,1% 5.610 2,0% 654 11,7%
Income taxes -299 -0,1% -22 0,0% -277 1270,9%
Net Income 5.964 2,0% 5.588 2,0% 376 6,7%
EBITDA 16.922 5,8% 15.857 5,6% 1.066 6,7%
This presentation contains forward-looking statements. including statements
Disclaimer
RipleyCorp
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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