RIPLEY CORP. 11th Annual Chile Conference A meeting with the chairman of the board Banco Santander September 27th, 2010

Transcription

1 RIPLEY CORP 11th Annual Chile Conference A meeting with the chairman of the board Banco Santander September 27th, 2010

2 CONTENTS RIPLEY CORP STRATEGIC PLAN 2Q2010 RESULTS CONCLUSIONS

3 Our Assets Revenues Jun-10 LTM: US$ 1,919 m Loan Portfolio: US$ 1,271 m 1.8 million customers using Tarjeta Ripley 51 stores in the best commercial areas of Chile and Peru with more than 344,000 m 2 of selling space 112,000 m 2 weighted selling space in shopping malls 48 branches of Banco Ripley in Chile 16 branches of Banco Ripley in Peru Second place on TOM in Chile Most recognized brand in department stores in Peru Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$

4 54 years of History 1956 First store in Santiago Credit business starts First department store First store outside Santiago Ripley Parque Arauco biggest store in South America / New image positioning First store in Peru Insurance brokerage and e-commerce Opening of Hong Kong office / local bond for US$257 m Ripley Corp IPO First store outside Lima (Trujillo) First shopping mall of Aventura Plaza S.A. JV in Peru Acquisition of 22.5% of Nuevos Desarrollos S.A. and sale of the participation in mature malls Opening Los Andes store in Chile and Chiclayo store in Peru Financial Statements under IFRS

5 Shareholders Structure Calderon family has been connected to the retail business for over 50 years Major Shareholders Free Float* Free Float 19.5% Stockbrokers & Retail 49.2% Pension Funds 13.8% International Investors 6.5% Calderon Group 65.5% Saieh Group 15.0% Insurance Companies 1.3% Mutual Funds 29.3% 5 *Figures as of August 28th, 2010

6 6 Business Units

7 Retail Business Chile Revenues evolution MUS$ Peru Revenues evolution MUS$ Second place on TOM 39 stores Selling space 237,210 m % Market Share Second largest department store company 12 stores Selling space 106,575 m 2 46% Market Share 7 Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$

8 Financial Retail Business Chile Revenues and Loan Portfolio Peru Revenues and Loan Portfolio Important actor in consumer loan market Gross Loan Portfolio of Tarjeta Ripley: US$ 636 m Gross Loan Portfolio of Banco Ripley: US$ 364 m Important player in credit cards loan market Gross Loan Portfolio of Tarjeta Ripley: US$ 272 m 2.3 million cards issued 6.0 million Tarjeta Ripley cards issued 8 Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$

9 Real Estate Business Strategy is to focus in the development of new projects with higher growth with the leading company of the industry Chile Property of 22.5% of Nuevos Desarrollos S.A. (77.5% subsidiary of Mall Plaza) 2 shopping malls 5 sites for development 33% of Mall Marina Arauco and Curico Chile Selling space (m2) Ownwership (%) Marina Arauco 57, Mall del Centro de Curico 45, Mall Plaza Sur 74, Mall Plaza Alameda 57, Total selling space* 63,966 Peru Selling space (m2) Ownwership (%) Aventura Plaza Trujillo 44, Aventura Plaza Bellavista 76, Total selling space* 48,230 TOTAL SELLING SPACE* 112,196 * Weighted by ownership % Peru Property of 40% in JV Aventura Plaza S.A. with Falabella (40%) and Grupo Plaza (20%) 2 shopping malls 2 in construction and other 4 planned to open before

10 CONTENTS RIPLEY CORP STRATEGIC PLAN 2Q2010 RESULTS CONCLUSIONS

11 Ripley Corp results in line with our strategy 2008: Reorganization Change business and organizational model Client Integration 2009: Ripley 2.0 Recharming the customer 2010: Improve profitability and selling space in Peru Efficiency Management 11

12 Strategic Pillars CLIENT EFFICIENCY INTEGRATION 12 MANAGEMENT

13 Focused on the main value source: The Client Adding new brands and increasing the value of current ones Increasing the number of clothing collections per season Optimizing price/quality ratio through better design and materials Improving the shopping experience Store remodeling 13

14 Important increase in Sales Retail revenues increased 30.4% in Ripley Chile versus 2Q2009 Retail revenues increased 16.9% in Ripley Peru versus 2Q

15 Accompained by higher growth in the retail margin Growth of margins in the retail business confirm that our strategy is on the right way 15

16 Integration, competitive strength Financial retail integration Focused on store customer The best of both worlds in one place 16

17 Increasing the customer data base 17 Tarjeta Ripley Chile have quadrupled new accounts activation thanks in large part to the implementation of the Captacion Express" program

18 High level management 1) Management change, highly experienced professionals 2) Removing redundant areas and capturing synergies 3) Management team committed and aligned with the strategic plan 18

19 Committed to efficiency and expenses control New distribution center in Chile Focus on reducing costs Inventory Turnover control Optimization process State of the art software 19

20 20 Improving key indicators in retail business

21 Reducing expenses RIPLEY CHILE EXPENSES 2 nd Quarter 1st Semester -2.2% -5.8% -0.4% -4.0% SGA s/m2 of Ripley Chile decreased 2.2% versus 2Q2009 SGA s of Ripley Chile decreased 4.0% versus 1S Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$

22 Ripley Corp Sustainable growth and profitable Increase profitability and selling space in Peru based on our strategic pillars 22

23 CONTENTS RIPLEY CORP STRATEGIC PLAN 2Q2010 RESULTS CONCLUSIONS

24 Ripley Corp - Results 2Q2010 Gross profit increased 37.8% versus 2Q2009 Operating income reached $19,196 million EBITDA increased 1,238.4% versus 2Q2009 reaching $28,098 million 24 24

25 Ripley Corp Results 1S2010 Net Income reached $16,245 million, improving 31.1% versus 1S2009 EBITDA in the second semestre reached $41,519 million 25 25

26 Ripley Perú Opening store plan Ripley Piura Estimated opening : Dic 2010 Ripley Arequipa Estimated opening : Dic 2010 (Aventura Plaza) Ripley Lima Estimated opening : Dic

27 CONTENTS RIPLEY CORP STRATEGIC PLAN 2Q2010 RESULTS CONCLUSIONS

28 Ripley Corp Conclusions Growth based on our strategic pillars Client Integration Management Efficiency 2010: Improve Ripley Corp profitability and selling space in Peru Growth retail margin Increase loan portfolio expanding client base Reduce Cost 3 new openings in Peru this year : Sustainable growth and profitability 28

29 Contact Information Speaker Juan Diuana Ripley Corp CFO More Information Investor Relations Contact Alexander Cahn (56-2)

30 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. 30

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