Ripley Corp s 3Q17 Earnings Presentation

Transcription

1 Ripley Corp s Earnings Presentation

2 1 9M17 accumulated results 2 Report highlights 3 Results Results by segment 5 Looking forward

3 RIPLEY CORP S 9M17 RESULTS SUMMARY 1 Positive evolution of operational results (+5.8%) Accumulated revenues increased 5.3% Higher same store sales ( SSS ) in Chile (+6.2%) Growth of online channel and private brands Effect of the consolidation of Mall Aventura S.A. ( Mall Aventura ) during 1H17 SG&A efficiencies in Ripley Chile EBITDA rose 11.9% up to MM$101,826 Earnings before taxes ( EBT ) reached MM$37,88, while net income reached MM$31,071 Lower results in 9M17 due to the effects of Mall Aventura s revalorization to fair value for MM$3,236 in, which alters the base for comparison Greater tax expense of MM$9,785 in 9M17 v/s 9M16, due to better tax results 3 RIPLEY CORP Accumulated (amounts in MMCLP) 9M17 9M16 Var % Total revenues 1,17,035 1,11, % Gross profit 32,22 09, % SG&A (395,153) (38,36) 2.8% EBIT 37,089 25,3 5.8% Income/loss before taxes 37,88 50, % Income/loss from continued operations 31,133 53, % Income/loss from discontinued operations (62) 2,201 Net income 31,071 55,36 -.0% EBITDA 101,826 90, %

4 REPORT HIGHLIGHTS 2 Ripley Corp now has a total of 7 stores, 5 of them in Chile and the remaining 29 are located in Peru. During September Ripley Chile opened its two newest stores: Los Dominicos with 8,317 m2 of selling surface Coquimbo with 5,55 m2 of selling surface On September 1 st Nuevos Desarrollos S.A. (Ripley owns 22.5% of its property) opened its 7 th mall in the country, Mall Plaza Los Dominicos, with 91,000 m2 of gross leasable area ( GLA ) as well as the presence of the main national and international stores With the intention of celebrating its 20 th anniversary in Peru, and after a process of remodeling, Ripley Jockey Plaza was reopened during the month of September. All three floors of the store were remodeled yet no change was made to the initial selling surface of 1,001 m2 Mall Aventura S.A. celebrated in July its first year of operation and development of the real estate business in Peru Mall Aventura began the expansion of the two malls it own: August 2017 Arequipa: current GLA: 65,300 m2; expansion GLA: 7,018 m2 November 2017 Santa Anita: current GLA: 57,600 m2; expansion GLA: 30,212 m2 Financial instruments issuances for a total amount of MMUSD 166: Ripley Bank Chile: Issued bonds for MM$26,500 and MMUF 1.5 (September) and for MMUF 0.5 (November) Ripley Bank Peru: Issued NCDs for MMS/ 50 (September) and for MMS/ 75 (November) Ripley adds Aéropostale to its mix of brands, an international brand that will be exclusively commercialized by Ripley, thus, continuing with the retail segment s strategy of differentiating through a private brand mix with a focus on clothing and fashion

5 RIPLEY CORP S RESULTS SUMMARY 3 EBT achieved MM$9,200, while the net income reached MM$6,709 Effects of Mall Aventura s revalorization to fair value for MM$3,236 in, alters the base for comparison Variations in discontinued operations and higher tax expense in due to better tax results Positive evolution of operational results(+.5%) Accumulated revenues increased..1% SSS in Chile (+.1%), driven by the online channel and private brands SG&A efficiencies in Ripley Chile EBITDA grew 11.7% up to MM$31,985 5 RIPLEY CORP Quarter (amounts in MMCLP) Var % Total revenues 38, ,21.1% Gross profit 11,136 13, % SG&A (130,700) (127,173) 2.8% EBIT 10,36 7,220.5% Income/loss before taxes 9,200 36, % Income/loss from continued operations 6,9 35, % Income/loss from discontinued operations (235) 2,231 Net income 6,709 37, % EBITDA 31,985 28, %

6 3 rd QUARTER 2017 RESULTS RIPLEY CHILE RETAIL BUSINESS REVENUES: increased 5.8% (+.1% SSS) Rise in sales from the apparel departments e-commerce sales focused on hard goods Revenues (MMMCLP) 17,7 165,1 +5.8% GROSS MARGIN: gross margin/sales ratio decreased Extension of the winter season affected the sales mix Partially compensated by the better performance of the soft/hard goods mix and to a larger rebate agreement with Ripley Bank EBIT: improved MM$837 in EBITDA: reached MM$1,165, similar to SG&A expenses decreased 0.9% Gross Profit (MMMCLP) 50,0 9,7 EBIT (MMMCLP) -2,2-3,1 EBITDA (MMMCLP) +0.8% -27.% 3T17 3T16 1,17 1,25-6.% 6 Amounts in MMCLP

7 3 rd QUARTER 2017 RESULTS RIPLEY PERU RETAIL BUSINESS Revenues (MMMCLP) REVENUES: increased 1.9% in Chilean pesos 1.8% rise in local currency (-0.7% SSS), mainly attributed to new stores Atocongo and Cayma Consumption impacted by a less dynamic economy Gross Profit (MMMCLP) 96,3 9,5 +1.9% GROSS PROFIT: gross margin/sales ratio decreased Higher levels of discounts regarding, associated to a lower than expected demand due to a less dynamic economy and to the climate effects of 1Q17 23, 2,2-3.2% EBIT: decreased MM$2,861 in EBIT (MMMCLP) EBITDA: reached -MM$1,90, a lower than in SG&A expenses increased 8.1% Two new stores opened in 2016 (late August and mid-december) Re-launch of Jockey Plaza store -, -1,6 EBITDA (MMMCLP) +18.0% -1,5 3T17 3T16 1,1 N/A 7 Amounts in MMCLP

8 3 rd QUARTER 2017 RESULTS RIPLEY CHILE FINANCIAL BUSINESS REVENUES: increased 3.1% Loan portfolio increased 6.5% Loan portfolio mix OPERATIONAL COSTS: increased.0% Funding costs decreased 0.2% Net risk cost rose 5.2%: Loan portfolio growth Worsening of the employment quality and a less dynamic economy NET INCOME: decreased 21.9% to MM$8,828 SG&A expenses increased 10% mainly attributed to larger rebate agreements made by the bank and the retail business and to amortizations of new systems IBT reached MM$12,317, a 8% less than in Revenues (MMMCLP) Net Income (MMMCLP) 72,6 +3.1% 70, 8,8-21.9% 11,3 Loan Portfolio (MMMCLP) 77,5 +6.5% 727,1 8 (*) Note: under NIIF, the contingent and additional provisions constituted under SBIF norm in Chile and SBS norm in Peru, are reversed at a consolidated level in Central Offices & Consolidation Adjustments Amounts in MMCLP

9 RIPLEY CHILE FINANCIAL BUSINESS 3 rd QUARTER 2017 RESULTS 22% 20% NPL's 1-90 Days (under 90 days) Healthy evolution of early NPL s (less than 90 days) and improving when compared to previous years and recent months Over 90 days NPL s show a slight rise, explained by a worsening of the employment quality as well as a response to a less dynamic economy Monthly net risk cost, with new provisions model, continues in steady levels that are in line with those shown the previous year 18% 16% 1% 6% 5% % 3% NPL's 90 + Days 1,9% 1,6% 1,3% 1,0% 0,7% 0,% 0,1% Net Provision Expense (Does not consider contingent and prudential provisions) 9 (*) In October 2016, Ripley Bank Chile changed its risk provisions aligning its model to the BIF definitions Old provisions model 2017

10 3 rd QUARTER 2017 RESULTS RIPLEY PERU FINANCIAL BUSINESS Revenues (MMMCLP) REVENUES: increased.7% Loan portfolio grew 8.% (7.6% in local currency) Loan portfolio mix 37,1 +.7% OPERATIONAL COSTS: rose 5.% Net risk cost increased 7.7% Loan portfolio growth 35,5 Net Income (MMMCLP) NET INCOME: increased 13.7% up to MM$,322 Stable SG&A expenses,3 3, % Loan Portfolio (MMMCLP) 352,8 +8.% 325,5 10 (*) Note: under NIIF, the contingent and additional provisions constituted under SBIF norm in Chile and SBS norm in Peru, are reversed at a consolidated level in Central Offices & Consolidation Adjustments Amounts in MMCLP

11 RIPLEY PERU FINANCIAL BUSINESS 3 rd QUARTER 2017 RESULTS Both early (under 90 days) and late Non Performing Loans (NPL s) are still maintaining healthy levels when compared to previous years 17% 15% 13% 11% 9% 7% NPL's 1-90 days The rise in net provisions expenses and late NPL s, regarding 2016 is mild and maintained in reasonable levels as well as improving in recent months, thanks to the credit risk evaluations policies in place 6% NPL's 90 + days 5% % 3% 2% 1% Net risk costs is increasing in line with the rise of the loan 1,2% 1,0% 0,8% 0,6% 0,% 0,2% 0,0% Net Provision Expense

12 RIPLEY REAL ESTATE BUSINESS 3 rd QUARTER 2017 RESULTS EBITDA 9,9% The net income of the real estate business increased 7.1% reaching MM$6,080 (Chile +3.8% y Peru +56.1%) Ripley Corp s proportional EBITDA achieved MM$10,195 during the quarter, increasing 9.9% when compared to 22,1% ,2% ,0% ,1% Mall Concepcion and leased properties Mall Aventura S.A. Inmob. Mall Vina del Mar S.A. Nuevos Desarrollos S.A. Non-consolidated operations Total Ownership Country Investment (1) (MMCLP) GLA (m 2 ) (1) Malls Mall Concepcion 100% Chile 72,96 36,521 1 Inm. Mall Vina del Mar S.A. 50% Chile 107,256 58,500 2 Nuevos Desarrollos S.A. 22,5% Chile 12,799 97,080 7 Mall Aventura S.A. 100% Peru 17, ,900 2 Total 79, , (1) Amounts weighed by the percentage of Ripley s ownership Amounts in MMCLP

13 REAL ESTATE BANK RETAIL LOOKING FORWARD 5 MAIN FOCUS MAIN SOURCE OF GROWTH & PROFITABILITY - Fashion & Brands - Increase Profitability Increase in margins Strengthening through strategic plan ecommerce channel focused on brands Increase in square meters and higher store maturity - Competitive Credit Card - New Core Banking System Migrate known clients to Mastercard Conservative growth leveraging on known clients Keep healthy leverage ratios Implement electronic accounts, debit cards and other bank services - Grow in Mall operations Greater maturity of existing malls, new malls under associates and expansion of existing owned malls Developing new projects 13

14 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.

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