RIPLEY TODAY IS... Deparment Stores Stores: 39 Revenues: US$1,407 MM Selling space: sqm

Size: px

Start display at page:

Download "RIPLEY TODAY IS... Deparment Stores Stores: 39 Revenues: US$1,407 MM Selling space: sqm"

Warren McDaniel
7 years ago
Views:

2 2 RIPLEY TODAY IS... Deparment Stores Stores: 39 Revenues: US$1,407 MM Selling space: sqm Financial Retail Loans: US$1,218 MM Revenues: US$ 472 MM Bank Branches: 46 Loans: US$475 MM Real Estate Revenues: US$16 MM Ownership in 7 shopping malls sqm space for lease

3 50 YEARS IN RETAIL MARKET - First store opened 1985 1956 -Starts credit business 1976

1986 -Changes in the Company s estructure. -A new generation came to Ripley.

1993 - RIPLEY PERU - First international store: Ripley Jockey Plaza 1997 -VIAJES Ripley

issuance 2003 México: JV Bal Group Perú: JV Mall Plaza First store outside Lima Capital

3 3 50 YEARS IN RETAIL MARKET - First store opened Starts credit business SAN DIEGO First department store in Santiago -BARROS ARANA First store outside Santiago Changes in the Company s estructure. -A new generation came to Ripley PARQUE ARAUCO Ripley opens in Mall Parque Arauco, land mark for Ripley s reposition RIPLEY PERU - First international store: Ripley Jockey Plaza VIAJES Ripley (travels) -BANCO Ripley ALTO LAS CONDES Insurance brokerage business Local Bond issuance 2003 México: JV Bal Group Perú: JV Mall Plaza First store outside Lima Capital increase new stores in Chile 1 new store in Perú Two new and important stores. (Crillon & Temuco) - IPO 2005

4 DEPARTMENT STORES La Polar 12.4% CHILE 39 stores Revenues US$1,045 MM Market share 26% Selling space 213.000 sqm Paris 24.

4 4 DEPARTMENT STORES La Polar 12.4% CHILE 39 stores Revenues US$1,045 MM Market share 26% Selling space sqm Paris 24.9% Falabella 37.3% Ripley 25.4% PERU 10 stores Revenues US$362 MM Market share 47% Selling space sqm Ripley 47% Falabella 53%

FINANCIAL RETAIL (CREDIT CARD) CHILE Loans: US$ 933 MM

8% Recent licence to operate as a Bank in Perú.

5 FINANCIAL RETAIL (CREDIT CARD) CHILE Loans: US$ 933 MM Revenues: US$ 354 MM Provisions/loans: 8.4% PERU Loans: US$ 285 MM Revenues: US$118 MM Provisions/loans: 5.8% Recent licence to operate as a Bank in Perú. US$MM US$ MM Total loans Year Credit Card Revenues Year CLP Dec 2007, CLP/USD Dec

6 BANCO RIPLEY Loans (US$MM) 462 474 328 US$MM 223 2004 2005 2006 2007 Year Bank 46 branches in Chile

6 6 BANCO RIPLEY Loans (US$MM) US$MM Year Bank 46 branches in Chile Loans US$474 MM in Chile * * Bank does not consolidate in Ripley Corp. CLP Dec 2007, CLP/USD Dec 2007

7 REAL ESTATE BUSINESS Ownership in 7 shopping malls 100.

7 7 REAL ESTATE BUSINESS Ownership in 7 shopping malls sqm weighted average of selling space Revenues: US$ 16 MM Chile: Ripley has the option to purchase 22,5% in three shopping malls of Mall Plaza 100% owned of shopping mall Concepción Peru: Joint Venture to build and manage of shopping malls o o o o The association between Mall Plaza and Ripley of develop shopping centers in Peru was officially reported on July 9th 3 malls: The first opened in Trujillo 3 others malls are approved by Ripley Board More are under evaluation

8 8 REVENUES Revenues Breakdown Financial revenues (Perú) Real estate revenues (Chile) 6% 1% Financial revenues (Chile) 19% 55% Retail revenues (Chile) 19% Ripley Corp Revenues/EBITDA Retail revenues (Perú) US$MM Revenues EBITDA Year CLP Dec 2007, CLP/USD Dec 2007

9 2007 RESULTS

10 RESULTS Net Income Operating Income EBITDA -9.4% US$MM % -75.7% Year Gross profit increased in 7.7% SG&A increased in 14.4% Difference in monetary correction of -US$ 42.3 MM Decrease in results on investment in Banco Ripley for US$ 19.5 MM Increase in financial expenses for US$ 9.9 MM Inflation difference of 5.2% compared to 2006 CLP Dec 2007, CLP/USD Dec 2007

11 RESULTS Retail revenues increased 5.1% in Chile 15% increase in selling space same store sales decreased a real 2.3% real (+ nominal 1.8%) Retail revenues increased 5.1% in Perú 8% increase in selling space same store sales increased a real 10.5%, measured in soles Exchange rate effect decreases growth expresed in chilean pesos Financial revenues increased 11.5% in Chile A real increase in loan portfolio of 24.2% As of January 2007, elimination of credit card comissions charged in Stores Financial revenues increased 9.2% in Perú Increase in percentage of sales financed with Ripley s credit card Increase on loans portfolio average a nominal 24% in soles Financial revenues grew a nominal 22% in soles CLP Dec 2007, CLP/USD Dec 2007

12 RESULTS OPERATING INCOME 28.3% decrease in Chile SG&A increased 16.9%, mainly due to new stores (15% increase in selling space) and increased collection and provisions expenses (porfolio grew a real 21.7%) Sales only increased a 6.7% As of January 2007, elimination of the comissions charged on stores purchases 20.9% increase in Perú Revenues increased 6.1% Gross margin increased 9.9% NON OPERATING INCOME Decreased -US$ 68 MM Decrease in results on investment in Banco Ripley for US$ 19.5 MM Difference in monetary correction of -US$ 42.3 MM due to an additional 5.2% inflation in Chile 27% increase on financial expenses, equivalent to US$ 9.9 MM, due to an increase in the average debt, mainly caused by the investments and growth CLP Dec 2007, CLP/USD Dec 2007

13 HIGHLIGHTS

14 14 DEPARTMENT STORE OPENINGS 2007 CHILE La Calera (Santiago): 4,000m 2 ; Opening June 07 Outlet Maipú (Santiago):7,010m 2 ; Opening Nov 07 Quilpué: 4,501m 2 ; Opening Nov 07 Chillán: 2,784m 2 ; Opening Nov 07 PERU Trujillo: 7,325m 2 ; Opening Dec 07

5% of the society The Board of Directors of the new Mexican company will be formed by an even number of members The

15 15 RIPLEY - PALACIO DE HIERRO JOINT VENTURE In this new company Ripley will have 47.5% and Palacio de Hierro the remaining 52.5% of the society The Board of Directors of the new Mexican company will be formed by an even number of members The new company aimed to meet the needs of Mexican consumers, through a department store format with financial services focused mainly from the middle class The business plan has contemplated open its first stores during the 2009

16 RIPLEY - PALACIO DE HIERRO JOINT VENTURE Bal Group is one of most important Holdings of Mexico Leading Holding s enterprise: o Palacio de Hierro:Is the most exclusive and prestigious department

16 16 RIPLEY - PALACIO DE HIERRO JOINT VENTURE Bal Group is one of most important Holdings of Mexico Leading Holding s enterprise: o Palacio de Hierro:Is the most exclusive and prestigious department store in Mexico o Peñoles: Is the world leading company in production of Silver. Its Market Value is estimated in about US$ 9,000 million o GNP: Is the leading insurance company in Mexico with a market share of 20% o Profuturo: Pension Fund Company with more than 3.4 million affiliates and number one in profits during the past 8 years o Valmex: Brokerage and Rental Company In addition, Bal Group funded and it is part of Instituto Tecnológico Autónomo of Mexico (ITAM) s board of directors, one of the leading universities in Mexico with more than 5,000 students

17 RIPLEY - PALACIO DE HIERRO JOINT VENTURE PDH is the most exclusive and Prestigious

focus is in the high economic stratus REVENUES COMPOSITION Financial; 5% Real Estate; 4% 10

y Springfield (España) 2 shopping malls 750,000 cards issued Capitalización bursátil: US$ 1,800

17 17 RIPLEY - PALACIO DE HIERRO JOINT VENTURE PDH is the most exclusive and Prestigious department store of Mexico 3 Business: Department Store, Financial Retail and Real Estate Their focus is in the high economic stratus REVENUES COMPOSITION Financial; 5% Real Estate; 4% 10 owned Department Store 3 outlets Restaurant 43 store in asociation with : Mango, Women s Secret y Springfield (España) 2 shopping malls 750,000 cards issued Capitalización bursátil: US$ 1,800 million Revenues 2006 : US$ 1,040 million EBITDA 2006: US$ 126 million Net Income 2006: US$ 87 MM Retail; 91%

18 18 CAPITAL INCREASE Capital increase approved by 160 million shares On December 17, Ripley Corp placed part of the 136 million shares the controlling shareholder had preemptive rights on the Santiago stock exchange. 98 million shares were placed at $ 555 per share The controlling group additionally subscribed 38 million shares in January 2008 at the samen price The final number of shares subscribed was 136,052,298 The Controlling group ended with 81% ownership

19 19 RIPLEY SHAREHOLDERS ShareHolders Calderon Group 81% Free Float 19% Free Float Others 56.7% Insurance Company 4.3% Mutual Funds 5.2% Foreign Investment 18.5% Pension Funds 15.2%

20 INVESTMENT PLAN

21 21 INVESTMENT PLAN 2008 CAPEX 2008E Investment in Stores US$ 79 MM Investment in Real Estate US$ 99 MM Others Investments US$ 67 MM TOTAL US$ 245 MM Working Capital 2008E Inventory Increase US$ 26 MM Loan Portfolio Increase US$ 159 MM TOTAL US$ 185 MM TOTAL INVESTMENT PLAN 2008 US$ 430 MM

RIPLEY CORP presentation. January 2009

RIPLEY CORP presentation. January 2009 RIPLEY CORP presentation January 2009 Ripley Corp 1. Ripley Today 2. Ripley Chile 2.0 3. Ripley Peru 4. Financing 5. Main goals Ripley Today why invest Ripley? Because Is a big player in the department