Ripley Peru

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 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 31st 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
Ripley Today - 53 years of history
1956
1976
1985
1986
First Store
opened in Chile
Credit business
starts
First department
store in Santiago
First department
store outside
Santiago
1993
1997
2000
2002
Insurance business
starts
Banco Ripley Chile
Parque Arauco Store:
Starts new positioning
on higher segments
First department store
in Peru
2003
2005
First bond issue
IPO
2007
JV Mall Aventura Plaza (Peru)
First store outside Lima
Capital Increase
bond Is issue
2008
4 new stores in Chile
1 new store in Peru
Banco Ripley Peru (ex Financor)
First Bond issue in Peru
Distribution center in Chile
Ripley Today - shareholders structure
Free Float
19.0%
Pension Funds
21.4%
International
Investors
19.7%
53.9%
*20.0%
Mutual Funds
2.8%
Insurance Co
2.9%
Calderon Group
81.0%
*
• A family member may sell 20% of Ripley due to liquidity needs
• Free float may increase
Source: Ripley.
Figures as of January 2nd 2009
Ripley Today - department stores business
La Polar
12.9%
Falabella
37.9%
Paris
25.4%
Ripley Chile
Stores
Selling space
Revenues LTM
Market Share
42
239,365 m2
US$ 929 m
23.8%
Ripley
23.8%
Ripley Peru
Stores
Selling space
Revenues LTM
Market Share
Ripley
11
99,978 m2
US$ 426 m
47.0%
Source: Ripley
Figures as of Sep-08; Stores as of Dec-08
Saga Falabella
47%
53%
Ripley Today – financial retail business
Chile
Peru
Tarjeta Ripley
Banco Ripley Peru
Loans: US$ 899 m
Loans: US$ 309 m
Revenues LTM: US$ 390 m
Revenues LTM: US$ 145 m
Provisions/loans: 10.8%
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
Ripley Today – shopping malls
Chile
• Ownership in 7 Shopping malls, with 101,211 m2 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
Ripley Today – results
Ripley Corp results
126
20%
105
88
19%
74
49
31
61%
9M 2007
Net Income
9M 2008
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
Revenues LTM
• Ripley Corp: US$ 1,762 m
• Ripley Chile: US$ 1,336 m
• Ripley Peru: US$ 426 m
Ripley Today – revenues & EBITDA
Revenues breakdown LTM
By business
Revenues breakdown LTM
By country
21%
24%
24%
EBITDA breakdown LTM
By country
1%
75%
Real estate
Financial
Retail
Figures as of Sep-08
79%
76%
Chile
Peru
Chile
Peru
Ripley Corp
1.
Ripley Today
2.
Ripley Chile 2.0
3.
Ripley Peru
4.
Financing
5.
Main aims
Ripley Chile 2.0 – taking a break
Year
Stores
In Santiago
Year
Stores
In Santiago
2000
20
8
Santiago
Santiago
+139% m2
More than one store
2008
42
18
Ripley Chile 2.0 – financial business
Tarjeta Ripley
• Loans Portfolio 3Q08: US$ 899 m
• Provisions/ Loans Portfolio 3Q08: 10.8%
8.4%
10.8%
7.4%
6.9%
899
899
740
636
329
288
2005
Loans portfolio
2006
Financial revenues
Figures in US$ million as of Sep-08 (FX: $551.31/US$)
341
2007
Provisions/ Loans portfolio
390
LTM Sep-08
Ripley Chile 2.0 – financial business
Private label card
Total
Less than 30
days past due
Between 30
Total loans portfolio (MUS$)
Between 90 and
and 90 days
Including up to date amounts
360 days past due
past due
and total delinquency
Past due installments as % of total portfolio
RIPLEY
Tarjeta Dorada La Polar
Tarjeta DIN
Tarjeta ABC
8,1%
13,0%
18,9%
25,4%
2,6%
4,5%
3,6%
4,2%
2,1%
4,1%
3,9%
5,1%
3,4%
4,4%
11,4%
16,1%
860,2
863,7
225,7
84,9
Past due loans as % of total portfolio
Jumbo
RIPLEY*
Más Paris
PRESTO
Paris
24,5%
29,8%
30,4%
30,7%
39,8%
Source: SBIF
*Calculated by Ripley
13,0%
15,3%
15,6%
12,8%
12,2%
6,8%
7,6%
9,7%
9,9%
8,7%
4,7%
6,9%
5,0%
7,9%
18,9%
137,1
808,7
512,1
642,8
196,2
Ripley Chile 2.0 – shopping malls
Changing mature shopping malls business for a growing one
Leasing Space (M2)
Shopping Mall
Panoramico
5.671
Mall del Centro
18.917
Mall del Centro Rancagua
13.646
Calama
44.206
Marina Arauco
57.968
Mall del Centro Curico
45.911
Mall Concepcion (Under construction)
90.000
% Ownership Ripley
100%
100%
100%
25%
33%
33%
100%
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)
Ripley Chile 2.0 - new flatter structure
Current
Andrés Roccatagliata
CEO
Commercial
Financial
Products
Channels
and
Services
Marketing
Risk
Operations
&
Technology
Before
CEO
Retail
Division
Financial
Business Division
Corporate
Services Division
Logistics
Branches
Ripley Chile 2.0 - efficiency
Synergies
Corporate savings
Synergies between financial and retail business
Savings of 14% on SG&As in 2009 (US$1.8 m approx. monthly)
• Common divisions for both of them (operations,
• Supplies
marketing, HH.RR)
• Holidays provisions
• Unique sale commission fees
• McCann Ericcson as unique advertising agency
• Using stores as a distribution channel of Banco
• Closing less profitable stores/areas (improving EBITDA/m2)
Ripley, reducing independent sales force
• New distribution center (saving 1% SG&As/Sales on Dec 2009)
-15.7%
534
450
3Q 2007
3Q 2008
SGAs/M2
Figures in US$ as of Sep-08 (FX: $551.31/US$)
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: $551.31/US$)
Ripley Chile 2.0 – goals for 2009
• Continue improving efficiency (SGAs/m2, Sales/m2)
• Keep risk controlled, focusing on collection
• Reduce levels of inventory
Ripley Corp
1.
Ripley Today
2.
Ripley Chile 2.0
3.
Ripley Peru
4.
Financing
5.
Main aims
Ripley Peru – stores
• 1 new store 2008
• 2 new stores 2009
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
Ripley Peru - revenues
94,978
94,978
87,653
6.5%
13.7%
428
402
353
2006
2007
Revenues
Figures in US$ million as of Sep-08 (FX: $551.31/US$ )
LTM sep-08
M2 (end of period)
Ripley Peru - results
• Operating Income
LTM Sep-08: US$ 62 m
• Net Income
LTM Sep-08: US$ 40 m
17.3%
62
53
42.7%
28
2007
40
LTM Sep-08
Net Income
Figures in US$ million as of Sep-08 (FX: $551.31/US$ )
Operating Income
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: $551.31/US$ )
Ripley Peru – banco ripley peru
• Loans portfolio Sep-08: US$ 309 m
• Provisions/ Loans portfolio Sep-08: 6.5%
6.7%
5.8%
6.7%
CAGR = 30%
257
141
Dec-05
6.5%
309
188
Dec-06
Loans portfolio
Figures in US$ million as of Sep-08 (FX: $551.31/US$ )
Dec-07
Provision/Loans portfolio
Sep-08
Ripley Peru – banco ripley peru
• Revenues LTM Sep-08: US$ 145 m
• Income LTM Sep-08: US$ 24 m
24
19
15
38.1%
145
18.1%
105
89
2006
2007
Revenues
Figures in US$ million as of Sep-08 (FX: $551.31/US$ )
LTM Sep-08
Net Income
Ripley Peru – banco ripley peru
Best ROE on Bank Industry (47%)
47%
40%
37%
32%
32%
29%
21%
Banco
Ripley
Banco
Falabella
Banco
continental
Source: SBS (www.sbs.gob.pe)
Banco de
credito de
Peru
Interbank
Scotiabank
Citibank
Ripley Peru – goals for 2009
• 2 new stores
• Continue with positive SSS
• Selective growth on loans portfolio
• Keep risk controlled
• Improve operating efficiency
Ripley Corp
1.
Ripley Today
2.
Ripley Chile 2.0
3.
Ripley Peru
4.
Financing
5.
Main aims
Financing – 2008
•
Ripley Corp first bond issue in Peru: August 7th
•
•
•
•
US$125 million in 3 new medium term bank loans (2 years bullet)
•
•
•
•
S./ 110.000.000 (US$39 m) - 9 years bullet - 8.56%
Rated AAA by Equilibrium (local credit risk agency)
The lowest spread of last comparable issue: 0.81% over Peruvian
Government Bonds
US$40 m; Rate 7.18%. Due date April 2010
US$44 m; Rate 8.23%. Due date July 2010
US$41 m; Rate 8.16%. Due date August 2010
Chilean credit risk confirmation by Humphreys and Feller-Rate for
Ripley Corp (A+) and Ripley Chile (AA-), stable outlook (Sep 2008)
Financing - inflation hedge
900
800
700
600
500
400
300
200
100
0
Dec-07
Mar-08
Unhedged balance
Figures in US$ million as of Sep-08 (FX: $551.31/US$ )
Jun-08
Sep-08
Forwards
Dec-08
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
762
715
324.643
589
246.081
446
148.557
269
40
3Q 2007
Cash
91
95.382
173
3Q 2008
Short Term Debt
Figures in US$ million as of Sep-08 (FX: $551.31/US$ )
Long Term Debt
Financing - debt profile
250
200
150
100
CASH
50
0
2009
2010
Banks
2011
Bonds
Figures in US$ million as of Dec 31st 2008 (FX: $551.31/US$)
Source: RIpley
2012
Comex
2013
2014
Leasing
2015+
Cash
Ripley Corp
1.
Ripley Today
2.
Ripley Chile 2.0
3.
Ripley Peru
4.
Financing
5.
Main goals
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
Contact information
Speaker
• Hernan Uribe – CFO Ripley Corp
Investor relations
• Alexander Cahn - [email protected]
• Phone: (+56 - 2) 694 1449
• Andrés Oksenberg - [email protected]
• Phone: (+56 - 2) 694 1462
RIPLEY CORP
presentation
January 2009