Ripley Peru

Transcription

Ripley Peru

RIPLEY CORP
September 2008
Ripley Corp
1. Ripley Today
2. Chile: increasing profitability
3. Peru: leadership on a high growth market
4. Mexico: the implementation
5. Conclusion
Ripley Today – current operations
Department stores
50 stores in Chile and Peru
selling space: 323,064 sqm
Financial Retail
Chilean credit card loans: US$ 929 m
Banco Ripley Peru loans: US$ 310 m
Banco Ripley Chile loans: US$ 461 m
Real Estate
ownership in 7 malls weighted average leasing space: 101,211 sqm
owned stores: 20
Figures as of June 2008
Ripley Today ‐ 52 years of history
2008
Ripley Punta Arenas
Ripley Alameda
Banco Ripley Peru
Ripley Corp Bond issuance in Peru
2002
Banco Ripley Chile
1986
Barros Arana First Department Store outside Santiago
2000
2007
Alto Las Condes
1985
San Diego First Department Store in Santiago
1976
Mexico: JV with Palacio de Hierro
Insurance brokerage business Peru: JV with Mall Plaza
starts
Ripley Trujillo: first store outside Lima
Chile: Lease contract with Plaza S.A.
1997
Ripley Corp: Capital increase
Ripley Jockey Plaza
Corporate Bond
First Department Store 2005
in Peru
Credit business starts
1956
First Store opened in Chile
Ripley Corp: IPO
1993
Parque Arauco Ripley Chile begins its new positioning 2003
Ripley Chile Bond issuance
Ripley Today – shareholders structure
Free Float 19.0%
Pension Funds
19.8%
Others
53.7%
International
Investors
19.0%
Mutual Funds
3.9%
Calderon Group
81.0%
Source: Ripley. Figures as of September 1st 2008
Insurance Co
3.6%
Ripley Today – department stores
CHILE
40 stores Revenues LTM: US$ 988 m
Market share: 24,1%
Selling space: 228,086 sqm
La Polar
12.9%
Falabella
37.9%
Ripley
24.1%
Paris
25.0%
PERU
10 stores
Revenues LTM: US$ 399 m
Market share: 47%
Selling space: 94,978 sqm
Source: Ripley
LTM Revenues and market share as of June 2008 Selling space as of August 2008.
Ripley
47.0%
Falabella 53.0%
Ripley Today – financial retail
CHILE
Tarjeta Ripley:
Loans: US$ 929 m
Revenues LTM Jun ‘08: US$ 382 m
Provisions/loans: 9.9%
Banco Ripley Chile
Loans: US$ 461 m
48 branches
PERU
Banco Ripley Peru
Loans: US$ 310 m
Revenues LTM Jun‐08: US$ 134 m
Provisions/loans: 6.7%
11 branches
Source: Ripley Figures as of June 2008.
Ripley Today – real estate business
Ownership in 7 Shopping malls 101,211 sqm weighted average selling space
Fully owned malls revenues LTM Jun‐08: US$ 16 m
Peru:

Joint venture with Mall Plaza (20%) and Falabella (40%), to build, operate and manage shopping malls
o
The first one opened in Trujillo on December 2007.
Chile:

Source: Ripley
Ripley has an option to buy 22.5% in 3 shopping malls of Mall Plaza.
Ripley Today – revenues breakdown
Ripley Corp revenues
US$ 1,785 m
(LTM as of June‐08)
Peru
22%
Chile
78%
Source: Ripley
LTM: Last Twelve Months
Ripley Today – Recent developments

Deconsolidation of financial statements of Banco Ripley Peru and reclassification of charges for provisions and write‐offs
Ripley Corp Consolidated
(MU$ of each period)
Revenues
Costs of sales
SGAs
Operating Result
Result on investment in related companies
Net Income
EBITDA
EBITDA Margin
Ripley Corp Consolidated
(MU$ of each period)
Loan Stock
Investment in related
companies
Debt
Equity
Source: Ripley
BRP: Banco Ripley Perú
6
Dec‐06
Before
Proforma
1,563.7
1,484.5
‐887.5
‐941.5
‐523.0
‐412.2
153.1
130.8
Dec‐07
Before
Proforma
1,788.7
1,689.8
‐1,006.7
‐1,081.5
‐642.4
‐500.2
139.6
108.0
Jun‐08
Proforma
865.4
‐538.4
‐264.3
62.7
11.1
109.8
27.0
109.8
5.5
28.7
25.6
28.7
16.3
40.0
187.4
12.0%
176.9
11.9%
176.4
9.9%
150.2
8.9%
86.6
10.0%
Dec‐07
Before
Proforma
1.089.0
830.6
Jun‐08
Proforma
850.0
Dec‐06
Before
Proforma
846.6
656.8
76.5
116.3
80.5
131.8
159.1
547.8
938.4
397.7
938.4
851.6
1,090.1
633.3
1,090.1
649.6
1,199.3
Ripley Today – Recent developments

Ripley Corp first bond issuance in Peru: August 7th S./ 110.000.000 (US$39 MM) ‐ 9 years bullet ‐ 8.56%
Rated AAA by Equilibrium (local Credit Risk Agency)
The lowest spread of last comparable issuances: 0.81% over Peruvian Government Bond
8

US$125 million in 3 new medium term bank loans (2 years bullet)

Chilean credit risk confirmation by Humphreys and Feller‐Rate for Ripley Corp (A+) and Ripley Chile (AA‐), stable outlook
Ripley Corp
1. Ripley Today
3. Peru: leadership on high a growth market
5. Conclusions
Ripley Chile: increasing profitability
Selective square meter increase to follow market growth
New management structure
New distribution center start up
Loans portfolio and controlled risk
Growth on real estate business through Mall Plaza
Ripley Chile results
Selective square meter growth to follow market growth
6 new stores between 2008 – 2009
Ripley Punta Arenas ‐ opening April 2008 – selling space 7,297 sqm
Ripley Alameda ‐ opening April 2008 – selling space 8,262 sqm
Ripley Agustinas ‐ closing January 2008 – selling space 953 sqm
Ripley Alameda Store
Ripley Punta Arenas Store

Current
Commercial
Andrés Roccatagliata
CEO
sFinancial
Products
Channels
and Services
Marketing
Risk
Operations
& Technology
Before
CEO
Retail
Division
Financial Business
Division
Corporate
Services
Logistics
Loans portfolio & Controlled risk
7.6%
9.9%
7.7%
20.6%
29.8%
593
Jun‐06
Loans (MU$ Jun‐08)
Source: Ripley
Figures in nominal terms
770
929
Jun‐07
Jun‐08
Provisions/ Loans
Sixth player in Chilean consumer loan financial market
December 2007
Itau Chile
2.8%
Cencosud
4.9%
Others
10.9%
BBVA
4.3%
Corpbanca
5.1%
Ripley +
Banco Ripley Chile
6.1%
Figures as of December 2007
Santander
20.6%
Chile+Citi
16.8%
BCI
8.9%
Estado
8.9%
Source: Ripley based on SBIF data, Banks and more Department Stores are included
Falabella+CMR
10.8%
Risk model management
Step 1 Î Initial credit scoring
Step 2 Î First loans: Only for purchases in the store Step 3 Î Behavior scoring: CRM/ risk/ profit
Step 4 Î Additional credit products (cash, term loans, associated commerce): Only to known costumer profiles
COLLECTIONS
Segmented, massive and with an appropriate technology
•
Long term lease contract with Mall Plaza Alameda S.A., Plaza Cordillera S.A. and Plaza San Bernardo S.A.
•
Option to buy 22.5% of those companies. Due date 2010 •
Ripley Corp S.A hired Citibank and Banchile to start a selling process for its shopping malls business in Chile. Shopping Mall
Panoramico
Leasing Space % Ownership Ripley
5,671
100%
Mall del Centro
18,917
100%
Mall del Centro Rancagua
Calama
13,646
44,206
100%
25%
Marina Arauco
57,968
33%
Mall del Centro Curico
45,911
33%
Mall Concepcion
(Under construction)
90,000
100%
EBITDA, Operating margin & result
7.6%
7.0%
69.5
MUS$
63.4
45.8
9.8%
7.5%
1S 2007
Operating Margin
Source: Ripley
49.3
1S 2008
Operating Result
EBITDA
Ripley Corp
1. Ripley Today
3. Peru: leadership on high growth market
5. Conclusions
Ripley Peru: leadership on high growth market
Macroeconomic environment
Excellent market positioning
Important store opening plan
Growth on loans portfolio with Banco Ripley Peru
Growth on real estate business with Aventura Plaza
A growing market... Annual Private Consumption Growth
11.7%
5.5%
2.7%
‐0.3%
1996‐1999
Source: Banco Central del Peru
2000‐2002
2003‐2005
2006‐2008
...There is a lack of department stores...
322
department sqm / 1000 inhabitants
49
6
Peru
Source: Ripley, Banco Central del Peru, US Census
Figures as of dec‐2002
Chile
USA
Annual department store sales per Capita (US$)
894
214
32
Peru
Figures as of April 2007
Chile
USA

Ripley Peru is number 1 on market share in Lima and number 2 in the country
Lima
Saga Falabella
46%
Peru
Ripley
54%
Ripley
47%
Saga Falabella
53%
Source: Ripley
Figures as of June‐08

Ripley has the best preference level among retailers
June‐08
June‐07
Others
4%
Others
15%
Ripley
43%
Falabella
32%
Max (Ripley)
10%
Source: Inmark Peru
Max: Ripley Store but focused in a lower level
Falabella
33%
Ripley
48%
Max (Ripley)
15%
6 new stores 2008 – 2009 Trujillo Store opening
Trujillo: first store outside Lima
Same Store Sales increases (nominal variation in nuevos soles)
18.7%
13.4%
14.1%
10.5%
8.3%
3.8%
Mar‐07
Jun‐07
Source: Press Release 2Q‐08 of Ripley Corp Sep‐07
Dec‐07
Mar‐08
Jun‐08
6.7%
5.6%
4.7%
38.4%
20.4%
310
224
186
Jun‐06
Jun‐07
Loans (MU$ Jun‐08)
Source: Ripley
Jun‐08
Provisions/ Loans
Sixth player in Peruvian consumer loans market
July 2008
Others 13.6%
BCP 19.6%
Citibank 5.1%
Banco Ripley Peru 5.9%
Interbank 18.3%
Falabella Peru 7%
Scotiabank Peru 15.4%
Continental 15.5%
Association with Mall Plaza (20%) and Falabella (40%) for the construction and operation of shopping malls in Peru.
One shopping in Trujillo
One shopping under construction in Callao
Three other incoming projects: Santa Anita, Primavera and Arequipa.
Ripley
40%
Falabella
40%
Aventura Plaza
Mall Plaza
20%
Opening of Trujillo Store

Ripley Corp
1. Ripley Today
5. Conclusion
Mexico: the implementation
Interesting opportunity in medium/low income segment
Grupo Bal: an excellent local partner
Advances in the business plan
RETAIL REVENUES COMPOSITION (Billon US$)
142,3
111,8
37%
78%
63%
22%
Non Food
Formal retail
Source: Planet Retail as of Dec 2006
Food
Traditional
Mexican department stores*: revenues and EBITDA margin evolution (US$ m)
14.7%
15.6%
15.5%
15.0%
14.6%
10,728
4,372
1999
5,104
5,635
6,120
2000
2001
2002
Revenues
Source: Ripley *Data based on Financial Statements of Coopel, Liverpool, Elektra, Famsa.
8,472
7,304
2003
2004
14.9%
11,609
9,346
2005
EBITDA margin
2006
2007
Grupo Bal is one of the most important business group of Mexico
o It is Controlled by Baillères’s Family
o It has participation on the followings businesses: Mining Industry, Industrial Activity, Financial Market, Agriculture Industry and Retail.
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 Cap is estimated in about US$ 12,000 million
o GNP: Is the leading insurance company in Mexico with a market share of 20%
o
Pension Fund Company with more than 3,4 million affiliates and number one in profits during the past 8 years Profuturo: o Valmex: Brokerage and Rental Company
In addition, Grupo Bal funded and participate in the board of directors of Instituto
Tecnologico Autonomo of Mexico (ITAM), one of leading universities in Mexico with more than 5,000 students. Mexico: the implementation
Positive macroeconomic environment
Grupo Bal: a partner of excellence
Leaders of the JV are living in Mexico
Second line teams formation
Negotiations with diverse real estate developers First stores openings: planned for 2009 Ripley Corp
1. Ripley Today
5. Conclusion
Conclusions
Chile: increasing profitability
Strength our solid loans position
Peru: leadership on high growth market
Important store opening plan Growth on loans portfolio with Banco Ripley Peru
Mexico: The implementation
First store openings: 2009
RIPLEY CORP
September 2008

Ripley Peru

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Ripley Peru