Peru

Ripley
Corp
Presentation
Ripley Corp Today
Revenues 2010: US$2,220 million
Market Cap (March,16th 2011): US$2,428 million
Company Free Float 34.5% & Daily avg transaction US$5 million
54 stores in best commercial areas of Chile and Peru
2 million customer actively using Tarjeta Ripley
Most recognized brand in department store in Peru
Real estate: participation in 7 shopping malls and 15 fully owned stores
2
Ripley Corp Today
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
3
Ripley Corp Today
92 million customer using Tarjeta
Ripley
9More than 8 million of Tarjeta Ripley
issued in Chile and Peru
948 branches of Banco Ripley in Chile
916 branches of Banco Ripley in Peru
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
4
Real Estate
Strategy is to focus in the
development of new projects with
higher growth with the leading
company of the industry
9 Chile
9 Property of 22.5% of Nuevos Desarrollos S.A.
9 2 shopping malls
9 5 sites for development
9 33% of Mall Marina Arauco and Curico
9 Mall Concepcion
9 Peru
9 Property of 40% of Aventura Plaza S.A.
9 3 shopping malls
9 1 in construction
9 3 sites for development
Chile
Selling Space (m2)
Ownership (%)
Marina Arauco
57,968
33.0
Mall del Centro de Curico
45,911
33.0
Mall Plaza Sur
74,583
22.5
Mall Plaza Alameda
57,355
22.5
Total weighted
63,966
Selling Space (m2)
Ownership (%)
Aventura Plaza Trujillo
44,114
40.0
Aventura Plaza Bellavista
76,460
40.0
Aventura Plaza Arequipa
55,000
40.0
Peru
70,230
Total weighted
Total Selling Space
134,196
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
5
Real Estate
AVENTURA PLAZA AREQUIPA:
MALL CONCEPCION
9 Opening in Dec, 2010
9 90,000 m2 selling space
9 Biggest shopping mall in the south of Peru
9 2 anchor stores (Ripley & Jumbo)
9 Investment: US$ 56 million
9 More than 130 minors stores
9 85 minors stores
9 Tower of 22 floor
9 Investment US$100 million
6
Where is Ripley in the industry?
Ripley Corp Today
Market Share:
Chilean Deparment Store
Market Share:
Peruvian Deparment Store
(As of December 2010)
(As of December 2010)
Source: Ripley, Companies press releases and Conasev
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
7
Where is Ripley in the industry?
Ripley Corp Today
Market Share:
Chilean Retail Credit Card Business*
Market Share:
Peruvian Credit Card Business*
(As of December 2010)
(As of December 2010)
* Measure as total credit card loan portfolio
Source: Ripley ,Companies press releases and SBS Peru
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
8
Where is Ripley in the industry?
Ripley Corp Today
Source: Ripley and Companies press releases
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
9
Where is Ripley in the industry?
FV/EBITDA
Ripley Corp Today
2010
6.5
5.5
4.5
3.5
P/E
3.4x
2.6x
2.4x
2.0x
2.5
1.8x
1.5
0.5
Ripley
Cencosud
Falabella
La Polar
IPSA
Source: Ripley and Companies press releases
10
Ripley Corp
What are we doing?
Making long‐term planning with clear and strong ideas through a strategic plan
11
Ripley Chile
Focused on the main value source: “The Client”
9 Adding new brands and
increasing the value of current
ones
9 Increasing the number of
clothing collections per season
9 Optimizing price/quality ratio
through better design and
materials
9 Improving the shopping
experience
9 Store remodeling
12
Ripley Chile
Improving logistics & efficiency
9Distribution center has the most advanced
technology in South America. It will:
9Improve customer service
9Make more efficient operations
9Increase inventory turnover
distribution center
13
13
Ripley Chile
Increasing portfolio through wider client base
with a more competitive credit card
Source: Ripley, SBIF
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
14
Ripley Peru
Duplicating selling space in Peru
Lima
915 stores in the best commercial areas
9 Duplicate selling space in Peru
98 new stores in Peru between
2011 – 2013
9124,000 m2 of selling space
9Most recognized brand in department stores in Peru
Source: Ripley
15
Ripley Corp
Therefore, we are working since 2008 to be in 2013 ...
2x m2 in Peru
2x EBITDA
16
Why invest Ripley?
Ripley Corp Today
Because…
• It is a great player in the department stores, credit and shopping malls business both in Chile and Peru
• Has a clear and strong long‐term strategic plan
• Both economies (Chile and Peru) are in good position to face the coming years
• Peru has a low penetration in Retail business and Ripley is well positioned
• The loan portfolio was reduced by the crisis and came back to grow with an atomized portfolio and low average debt per customer
• All business margins are growing
• And finally, because we want to double the m2 in Peru and generate 2x EBITDA
Business performance has improved in 2010, but stock valuation has remained low:
• Revenues 2010: MUS$ 2,351 (+7%) • EBITDA 2010: MUS$ 212 (+377%)
• Net Income 2010: MUS$ 107 (+939%)
• Market Cap (March 16th, 2011) MUS$ 2,428 • Multiples in low level ( FV/EBITDA=13.2x, P/E=22.7x )
Source: Ripley
Figures in nominal CLP converted to US$ using Dec 30th FX rate of $468.01/US$
17
Contact Information
Speakers
Hernán Uribe – Member of the Board
Juan Diuana – Ripley Corp CFO
More Information
www.ripley.cl
Investor Relations Contact
Alexander Cahn
[email protected]
(56-2) 694 1042
18
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.
19
ANEXESS
Shareholders Structure
9 Calderon family has been connected to the retail business for over 50 years
Major Shareholders
*Figures as of Feb28th, 2011
Free Float*
1
Retail Business
Ripley Chile
Ripley Peru
2
Investment Plan
Ripley Corp
9Investment Plan 2011 – 2013 for a total amount of US$ 979 million
including CAPEX and working capital
3
Ratios Ripley Corp – Non Banking Operations
Finance Structure
Financial Debt Ripley Corp – Non Banking Operations
Total Debt
(Short Term down)
Total Net Debt
Cash
Figures in billion of pesos as of Dec-2010
Figures in billion of pesos as of Dec-2009
Figures in nominal CLP converted to US$ using Sept 30th FX rate of $483.65/US$
4