RIPLEY CORP presentation. January 2009

Transcription

1 RIPLEY CORP presentation January 2009

2 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main goals

3 Ripley Today why invest Ripley? Because Is a big player in the department store business in Chile (23.8% market share) and in Peru (47% market share) Both economies have good relative prospects for 2009 Diversified loan portfolio in different market segments Has a solid financial position Peru is a less developed market where Ripley is well established Financial performance has improved in 2008, but stock valuation has remained low: Revenues 9M 2008: US$ 1,270 m (+4%) EBITDA 9M 2008: US$ 126 m (+20%) Net Income 9M 2008: US$ 49 m (+61%) Market Cap December 31 st 2008: US$ 966 m* Multiples in their lowest level ( P/B: 0.81 ) Ripley Corp stock price as of Dec 31st 2008: CH$ 275, US$ 0.5

4 Ripley Today - 53 years of history First Store opened in Chile Credit business starts First department store in Santiago First department store outside Santiago Parque Arauco Store: Starts new positioning on higher segments First department store in Peru Insurance business starts Banco Ripley Chile First bond issue IPO JV Mall Aventura Plaza (Peru) First store outside Lima Capital Increase bond Is issue new stores in Chile 1 new store in Peru Banco Ripley Peru (ex Financor) First Bond issue in Peru Distribution center in Chile

5 Ripley Today - shareholders structure Free Float 19.0% Pension Funds 21.4% 53.9% International Investors 19.7% *20.0% Mutual Funds 2.8% Calderon Group 81.0% Insurance Co 2.9% * A family member may sell 20% of Ripley due to liquidity needs Free float may increase Source: Ripley. Figures as of January 2nd 2009

6 Ripley Today - department stores business Paris 25.4% La Polar 12.9% Ripley 23.8% Falabella 37.9% Ripley Chile Stores 42 Selling space 239,365 m 2 Revenues LTM US$ 929 m Market Share 23.8% Ripley Peru Stores 11 Selling space 99,978 m 2 Revenues LTM US$ 426 m Market Share 47.0% Ripley 47% Saga Falabella 53% Source: Ripley Figures as of Sep-08; Stores as of Dec-08

7 Ripley Today financial retail business Chile Tarjeta Ripley Loans: US$ 899 m Revenues LTM: US$ 390 m Provisions/loans: 10.8% Peru Banco Ripley Peru Loans: US$ 309 m Revenues LTM: US$ 145 m Provisions/loans: 6.5% Banco Ripley Chile Loans: US$ 427 m Revenues LTM: US$ 102 m Provisions/loans: 5.6% Source: Ripley Figures as of Sep 2008

8 Ripley Today shopping malls Chile Ownership in 7 Shopping malls, with 101,211 m 2 of weighted average selling space Fully owned malls revenues LTM: US$ 17 m Ripley has an option to buy 22.5% of new developments of Mall Plaza, including recently opened malls Alameda and San Bernardo Ripley Corp S.A hired Citibank and Banchile to sell its shopping malls business in Chile Peru Joint venture with Mall Plaza (20%) and Falabella (40%), to build, operate and manage shopping malls The second shopping mall opened in Callao, Lima on December 2008 Source: Ripley

9 Ripley Today results Ripley Corp results % 19% 88 Revenues LTM Ripley Corp: US$ 1,762 m Ripley Chile: US$ 1,336 m Ripley Peru: US$ 426 m 31 61% 49 9M M 2008 Net Income Operating Result EBITDA Figures in US$ million as of Sep-08 (FX: $551.31/US$) 9M: accumulated for the first nine months of the year

10 Ripley Today revenues & EBITDA Revenues breakdown LTM By business Revenues breakdown LTM By country EBITDA breakdown LTM By country 24% 24% 21% 1% 75% 76% 79% Real estate Financial Retail Chile Peru Chile Peru Figures as of Sep-08

11 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main aims

12 Ripley Chile 2.0 taking a break Year 2000 Stores 20 In Santiago 8 Year 2008 Stores 42 In Santiago 18 Santiago Santiago More than one store +139% m 2

13 Ripley Chile 2.0 financial business Tarjeta Ripley Loans Portfolio 3Q08: US$ 899 m Provisions/ Loans Portfolio 3Q08: 10.8% 6.9% 7.4% 8.4% % LTM Sep-08 Loans portfolio Financial revenues Provisions/ Loans portfolio Figures in US$ million as of Sep-08 (FX: $551.31/US$)

14 Ripley Chile 2.0 financial business Private label card Total Less than 30 days past due Between 30 and 90 days past due Between 90 and 360 days past due Past due installments as % of total portfolio Total loans portfolio (MUS$) Including up to date amounts and total delinquency RIPLEY 8,1% 2,6% 2,1% 3,4% 860,2 Tarjeta Dorada La Polar 13,0% 4,5% 4,1% 4,4% 863,7 Tarjeta DIN 18,9% 3,6% 3,9% 11,4% 225,7 Tarjeta ABC 25,4% 4,2% 5,1% 16,1% 84,9 Past due loans as % of total portfolio Jumbo 24,5% 13,0% 6,8% 4,7% 137,1 RIPLEY* 29,8% 15,3% 7,6% 6,9% 808,7 Más Paris 30,4% 15,6% 9,7% 5,0% 512,1 PRESTO 30,7% 12,8% 9,9% 7,9% 642,8 Paris 39,8% 12,2% 8,7% 18,9% 196,2 Source: SBIF *Calculated by Ripley

15 Ripley Chile 2.0 shopping malls Changing mature shopping malls business for a growing one Shopping Mall Leasing Space (M 2 ) % Ownership Ripley Panoramico % Mall del Centro % Mall del Centro Rancagua % Calama % Marina Arauco % Mall del Centro Curico % Mall Concepcion (Under construction) % Ripley has the option to acquire 22.5% of all the new shopping malls (including the recently opened Alameda and San Bernardo) to be developed by Mall Plaza, the main player of the industry (32% market share)

16 Ripley Chile new flatter structure Current Andrés Roccatagliata CEO Commercial Financial Products Channels and Services Marketing Risk Operations & Technology Logistics Branches Before CEO Retail Division Financial Business Division Corporate Services Division

17 Ripley Chile efficiency Synergies Synergies between financial and retail business Common divisions for both of them (operations, marketing, HH.RR) Unique sale commission fees Using stores as a distribution channel of Banco Ripley, reducing independent sales force Corporate savings Savings of 14% on SG&As in 2009 (US$1.8 m approx. monthly) Supplies Holidays provisions McCann Ericcson as unique advertising agency Closing less profitable stores/areas (improving EBITDA/m 2 ) New distribution center (saving 1% SG&As/Sales on Dec 2009) -15.7% Q Q 2008 SGAs/M2 Figures in US$ as of Sep-08 (FX: $551.31/US$)

18 Ripley Chile 2.0 capex forecast US$ 78 m Option to buy 22.5% of new Mall Plaza shopping malls Banco Ripley Chile capital increase Improvements in stores IT Figures in US$ million as of Sep-08 (FX: $551.31/US$)

19 Ripley Chile 2.0 goals for 2009 Continue improving efficiency (SGAs/m 2, Sales/m 2 ) Keep risk controlled, focusing on collection Reduce levels of inventory

21 Ripley Peru stores 1 new store new stores 2009

22 Ripley Peru shopping malls Aventura Plaza: Joint Venture with Mall Plaza (20%) and Falabella (40%) to build and manage shopping malls 2 shopping malls operating 1 new opening in 2009

23 Ripley Peru - revenues 94,978 94,978 87, % % LTM sep-08 Revenues M2 (end of period) Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

24 Ripley Peru - results Operating Income Net Income LTM Sep-08: US$ 62 m LTM Sep-08: US$ 40 m % % LTM Sep-08 Net Income Operating Income Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

25 Ripley Peru capex forecast US$ 24 m 2 new stores in 2009 Capital increase for shopping malls of Aventura Plaza Improvements in Stores IT Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

26 Ripley Peru banco ripley peru Loans portfolio Sep-08: US$ 309 m Provisions/ Loans portfolio Sep-08: 6.5% 6.7% 6.7% 6.5% 5.8% CAGR = 30% Dec-05 Dec-06 Dec-07 Sep-08 Loans portfolio Provision/Loans portfolio Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

27 Ripley Peru banco ripley peru Revenues LTM Sep-08: US$ 145 m Income LTM Sep-08: US$ 24 m % % LTM Sep-08 Revenues Net Income Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

28 Ripley Peru banco ripley peru Best ROE on Bank Industry (47%) 47% 40% 37% 32% 32% 29% 21% Banco Ripley Banco Falabella Banco continental Banco de credito de Peru Interbank Scotiabank Citibank Source: SBS (

29 Ripley Peru goals for new stores Continue with positive SSS Selective growth on loans portfolio Keep risk controlled Improve operating efficiency

31 Financing 2008 Ripley Corp first bond issue in Peru: August 7th S./ (US$39 m) - 9 years bullet % Rated AAA by Equilibrium (local credit risk agency) The lowest spread of last comparable issue: 0.81% over Peruvian Government Bonds US$125 million in 3 new medium term bank loans (2 years bullet) US$40 m; Rate 7.18%. Due date April 2010 US$44 m; Rate 8.23%. Due date July 2010 US$41 m; Rate 8.16%. Due date August 2010 Chilean credit risk confirmation by Humphreys and Feller-Rate for Ripley Corp (A+) and Ripley Chile (AA-), stable outlook (Sep 2008)

32 Financing - inflation hedge Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Unhedged balance Forwards Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

33 Financing - debt profile Net debt 3Q 2007: US$ 675 m 3Q 2008: US$ 671 m Cash 3Q 2007: US$ 40 m Cash 3Q 2008: US$ 91 m Q Q 2008 Cash Short Term Debt Long Term Debt Figures in US$ million as of Sep-08 (FX: $551.31/US$ )

34 Financing - debt profile CASH Banks Bonds Comex Leasing Cash Figures in US$ million as of Dec 31st 2008 (FX: $551.31/US$) Source: RIpley

35 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main goals

36 Main goals Consolidation of Chilean business Focus on efficiency and synergies Focus on client with an integrated offer of retail and financial services Growth in the financial business with controlled risk Keep leading and growing in Peru Add value to shareholders

37 Contact information Speaker Hernan Uribe CFO Ripley Corp Investor relations Alexander Cahn - acahn@ripley.cl Phone: (+56-2) Andrés Oksenberg - aoksenberg@ripley.cl Phone: (+56-2)

38 RIPLEY CORP presentation January 2009