Ripley Corp. May st Quarter 2017 Results

Transcription

1 Ripley Corp May st Quarter 2017 Results

2 LIST OF CONTENTS 1. Ripley Corp s results summary 2. highlights 3. Ripley Retail 4. Ripley Bank 5. Real Estate 6. Looking forward

3 RIPLEY CORP S RESULTS SUMMARY Net income reached MM$6,132, similar number in comparison with Net income before taxes reached MM$8,004, growing MM$6,678 versus the previous year Effects: Important gain for taxes and profits by discontinued operations EBIT positive Evolution (137,6%) Quarter s revenues increased 6.4% Higher same stores sales ( SSS ) in Chile (+9.3%) partially offset by Peru (-7.8%) Financial revenues grew 7.6% Consolidation of Mall Aventura S.A. ( Aventura ) EBITDA rose 22.0% up to MM$31,216 RIPLEY CORP (amounts in CLPMM$) Var % Total revenues ,4% Gross profit ,9% SG&A ( ) ( ) 1,5% EBIT ,6% Income/loss before taxes ,7% Income/loss from continued operations ,3% income/loss from discontinued operations (179) Net income ,3% EBITDA ,0%

4 REPORT HIGHLIGHTS On May 19 th of this year, the controlling group of Ripley Corp and El Puerto de Liverpool ( Liverpool ) agreed to put an end to the Partnership Agreement, stating that ten months after this agreement was announced, geopolitical and economic changes have occurred in both the Chilean and Mexican markets, which motivated the termination. After this decision, the parties also indicated that they will continue focusing their efforts in growing their businesses and currents projects. Also, both Liverpool and the controlling group of Ripley will continue to keep good relations and close dialog to share experiences and better practices, as well as they ll continue evaluating future business opportunities together. In the Ordinary Shareholders Meeting, held April 13 th 2017,a dividend distribution of $10.94 per share was approved, which represents 30% of 2016 s distributable net income Additionally, two new board members were elected in said Meeting, Mauricio Balbontín and Alejandro Rosemblatt replacing Gustavo Alcalde and Felipe Morande, respectively Finally New store Ripley San Fernando in Chile opened May 6 th ,127 m2 of selling space

5 1 st QUARTER 2017 RESULTS RIPLEY CHILE RETAIL BUSINESS Revenues (MMMCLP) REVENUES: increased 9.2% (+9.3% SSS) Rise in the apparel departments e-commerce sales focused on hard goods Gross Profit (MMMCLP) 164,4 179,5 +9.2% GROSS MARGIN: Gross Margin/sales increased Better performance of soft goods Better mix of soft/hard goods Larger contribution of commercial discount from Ripley Bank EBIT (MMMCLP) 45,5 51, % EBIT: increased MM$3,528 in EBITDA: increased to MM$3,549 in SG&A increased 5.4% Stable direct SG&A 170 bps increase in EBITDA margin -0,3-3,8 EBITDA (MMMCLP) 91.8% 0,5 3, % Amounts in MMCLP

6 1 st QUARTER 2017 RESULTS RIPLEY PERU RETAIL BUSINESS Revenues (MMMCLP) REVENUES: decreased 4.8% in Chilean pesos 2.7% increase measured in Peruvian currency (-7.8 % SSS) Weaker consumption environment, due to a less dynamic economy and the climate effects of El Niño Gross Profit (MMMCLP) 81,7 85,9-4.8% GROSS MARGIN: gross margin/sales decreased slightly Lower demand during summer commercial campaign (weaker consumption environment and El Niño) Stable contribution by commercial discount from Ripley Bank 20,1 21,7 R. Operacional (MMMCLP) -7.3% EBIT decreased in MM$2,882 EBITDA: reached -MM$2,861, Lower number than SG&A increased 5.3% Two additional stores opened in 2016 (august and december) Rise in publicity expenses -2,9-5,8-2,9 EBITDA (MMMCLP) -0, % -1,792% Amounts in MMCLP

7 1 st QUARTER 2017 RESULTS RIPLEY CHILE FINANCIAL BUSINESS Revenues (MMMCLP) REVENUES: increased 7.0% Loan portfolio grew 7.2% 67,7 72,5 +7.0% OPERATIONAL COSTS: rose 3.9% Funding costs decreased 7.2% Net risk cost increased 5.7% Net Income (MMMCLP) NET INCOME: increased 30.6% to MM$10,190 Income before taxes increased 39.0% Stable SG&A 7,8 10,2 +30,6% Loan Portfolio (MMMCLP) 715,6 766,9 +7.2% Amounts in MMCLP

8 RIPLEY CHILE FINANCIAL BUSINESS Healthy evolution of Early Non performing loans ( NPL s ) when compared to previous years Late NPL s show a slight increase when compared to previous year, yet in healthy levels compared with previous year, and also in line with the behavior of the Chilean banking system during the first months of 2017 The Net Provision Expense even considering the new provisions model, is stable and in line with previous years. 22,0% 20,0% 18,0% 16,0% 14,0% 5,5% 5,0% 4,5% 4,0% 3,5% 1,6% 1,1% 0,6% 0,1% 1 st QUARTER 2017 RESULTS NPL's 1-90 Days NPL's 90 + Days Net Provision Expense (Does not consider contingent and prudential provisions) (*) In October 2016, Ripley Bank Chile changed its risk provisions aligning its model to the BIF definitions Old provisions model 2017

9 1 st QUARTER 2017 RESULTS RIPLEY PERU FINANCIAL BUSINESS Revenues (MMMCLP) REVENUES: increased 7.6% 35,9 Loan portfolio grew 11,4% OPERATIONAL COSTS: Increase of net risk cost Deterioration in payment behavior of the Peruvian banking system El Niño s first consequences NET INCOME: decreased 24.3% to MM$2,785 SG&A decreased 1.4% Net Income (MMMCLP) 2,8 3,7 Loan Portfolio (MMMCLP) 33,3 +7.6% -24.3% 366,5 319, % Amounts in MMCLP

10 RIPLEY PERU FINANCIAL BUSINESS Early and late NPL s still maintaining healthy levels 17% 15% 13% 11% 9% 7% 1 st QUARTER 2017 RESULTS NPL's 1-90 days Rise in Net Provision Expenses in 2017 is explained: 1) by the deterioration in the payment behavior of the Peruvian banking system as a whole, as well as the requirement to constitute provisions based in behaviors with other banks and not only with Ripley Bank 2) El Niño s first consequences 6,0% NPL's 90 + days 5,0% 4,0% 3,0% 2,0% 1,0% 1,2% 1,0% 0,8% 0,6% 0,4% 0,2% 0,0% Net Provision Expense

11 1 st QUARTER 2017 RESULTS RIPLEY REAL ESTATE BUSINESS Mall Concepción: EBITDA increased 35.2% reaching MM$1,445 in EBITDA (1) Mall Aventura (2) : EBITDA reached MM$2, Inmobiliaria Viña del Mar ( IMVM ): EBITDA grew 75.2% reaching MM$3,392, out of which MM$1,132 were due the increase in the stake of the company, which went from 33.3% to 50% INMV 16.8% increase in adjusted EBITDA Nuevos Desarrollos: EBITDA rose 1.3% up to MM$2,659 in Mall Concepción Mall Aventura (2) Inmob. Mall Viña del Mar S.A. Nuevos Desarrollos S.A. Non-consolidated Operations Ownership Country Investment (1) (CLP MM) GLA (m 2 ) (1) Malls TOTAL EBITDA (1) Mall Concepción 100% Chile 76,510 26, % Inm. Mall Viña del Mar 50% Chile 104,220 58,500 2 Nuevos Desarrollos 22,5% Chile 122,831 76, Mall Aventura 100% Peru 174, ,900 2 Total 478, , (1) Amounts weighed by the percentage of Ripley s ownership (2)2016 EBITDA corresponds to 40% of Aventura Plaza S.A. Amounts in MMCLP

12 RETAIL BANK REAL ESTATE LOOKING FORWARD MAIN FOCUS MAIN SOURCE OF GROWTH & PROFITABILITY - Fashion & Brands - Increase Profitability Increase in margins through strategic plan focused on brands Strengthening ecommerce channel 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 Source: Ripley Corp s Dec-16 Financial Results

13 4 th QUARTER 2016 RESULTS

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