1Q 2013 Earnings Release

Transcription

1 1Q 2013 Earnings Release EBITDA of Ripley Chile and Peru increases 26.9% Ripley and 67.5% respectively, compared to 1Q2012 EBITDA Ripley Corp increased 6.7%, absorbing pre-operating expenses of Colombia, which amounted to $3,021 million during the quarter. CORP 1Q 2013 Total revenues of Ripley Corp in the first quarter grew 3.8% compared to the first quarter of Ripley Corp's EBITDA reached $16,922 million, increasing 6.7% compared to the same quarter last year, mainly due to the better results both in Chile and Peru, which were partly offset by the costs associated with Colombia. Without Colombia Ripley Corp's EBITDA would have shown an increase of 25.6%. Net Income was $5,964 million, 6.7% higher than 1Q Without Colombia Ripley Corp s Net Income would have shown an increase of 46.9%. CHILE 1Q 2013 Retail gross margin increased 11.9% due to sales growth of 2.5% and an increase in margins as a percentage of sales from 23.9% in 1Q 2012 to 26.1% in the 1Q2013. The financial business gross margin (revenues minus risk charges) increased by 3.8% mainly due to a 15.8% decrease in risk charges. Net Income in Ripley Bank Chile decreased by $788 million compared to the same quarter last year, due to an increase in risk charges and a decrease in fees revenues. Ripley Chile + Bank EBITDA increased by 15.8%. PERU 1Q 2013 The retail gross margin increased 30.6% in soles, due to sales growth of 9.7% in soles and an increase in margins as a percentage of sales from 21.3% in 1Q 2012 to 25.3% in 1Q2013 Financial revenues of Ripley Bank in Peru fell 2.4% in soles compared to the same period last year, mainly due to a decrease in fees revenues. Ripley Peru EBITDA increased by 66.6% in soles.

2 CONTENTS 1. Highlights Income Statement Summary Results explanation Retail Indicators Credit Indicators Stores Financial Structure A. Balance Ripley Corp B. Income Statement of Ripley Corp...16 Notes: Consolatied financial results according to Interntional Financial Reporting Standards (NIFF), standards of the Superintendency of Securities and Insurance of Chile (SVS), and standards established by the Superintendency of Banks and Financial Institutions (SBIF). All data is expressed in Chilean pesos, unless indicated otherwise The month end exchange rate peso / dollar was $ in M 2013 and March 2012 was $ The month end exchange rate sol / dollar was S./ in March 2013 and March 2012 was S./ The month end exchange rate peso colombiano/ dollar was COP 1,825 in March 2013 and March 2012 was COP 1,747 Tables with the consolidated income statements were made as the sum of the business of banking subsidiaries over nonbank subsidiaries to simplify the analysis. Chile: is the segment that includes Ripley Chile SA, Banco Ripley Chile SA and other companies with operations in Chile Operating Income: Revenue - Cost of Sales - Distribution costs - Expenses of administration. Q1 = first quarter Q2 = second quarter Q3 = third quarter Q4 = fourth quarter H1 = first half 9M = accumulated in the first nine months of the year Page 2 of 17

3 1. Highlights First Quarter 2013 Compañía de Financiamiento On February 19th, the Financial Superintendency of Colombia authorized the creation of Ripley Financing Company SA, through which Ripley will do its services in the financial business. After First Quarter 2013 First three stores in Colombia During April Ripley started the trial run of its first three stores in the Colombian market. The first store to open its doors was Mall el Cacique store, in the city of Bucaramanga. The second store to open was Ripley Calima, in the mall Calima Bogota and at the end of the month, the store Ripley Centro Mayor opened, also in Bogotá. Ripley Store Opening in Peru: Piura II Ripley Peru inaugurated in May its store number 21 in the country, and second store in the city of Piura. The store has a selling space of 5,412 m2. Page 3 of 17

4 2. Income Statement Summary Ripley Corp Ripley Corp (CLP million) 1T2013 1T2012 $MM % Rev $MM % Rev Var CLP Var % CLP Revenues of Non-Banking Operations ,4% ,7% ,6% Revenues of Banking Operations ,6% ,3% ,4% Total Revenues ,0% ,0% ,8% COST of Non-Banking Operations ,4% ,2% ,3% COST of Banking Operations ,6% ,0% ,4% Total COGS ,9% ,9% ,7% GROSS PROFIT ,1% ,1% ,4% SG&A Expenses ,2% ,3% ,6% EBIT ,9% ,8% 613 7,7% Financial income 916 0,3% 858 0,3% 58 6,7% Financial costs ,8% ,8% ,9% Other subsidiaries income (expenses) ,9% ,7% ,1% Other non-operating income (expenses) 268 0,1% ,1% 487 Exchange differences ,1% 755 0,3% -954 Inflation-indexed monetary units ,1% ,1% ,6% Other non-operating banking expenses ,0% -69 0,0% ,2% Non-operating Income ,8% ,8% 40-1,7% Income before taxes ,1% ,0% ,7% Income taxes ,1% -22 0,0% ,9% Profit (Loss) attributable to equity holders of parent ,0% ,0% 375 6,7% profit (Loss) attributable to minority interest 1 0,0% -1 0,0% 1 Net Income ,0% ,0% 376 6,7% EBITDA ,8% ,6% ,7% EBITDA: Operating Income + Depreciation + Amortization of intangibles Page 4 of 17

5 3. Results explanation Business in Chile Retail Business 1Q2013 Retail Gross Margin increases by 11.9% Sales Retail revenues in the first quarter had a growth of 2.5%, reaching $144,691 million. This is explained by the addition of two new stores that opened in 2012 (Costanera and Mall Concepción) to compare both quarters as growth in same store sales (SSS) was flat, due to the commercial strategy to increase margins and reduce inventories. Sales margins The retail margin as a percentage of sales, increased from 23.9% in 1Q2012 to 26.1% in 1Q2013. This is explained by a better administration of inventories together with the company's strategies to promote and increase brand value to achieve better margins. The increase in sales plus the increase in margins explains the growth of 11.9% in retail gross margin. Credit Card Business 1Q2013 Credit Card gross margin increases by 3.8% Financial Revenues The average loan portfolio increased 2,3% compared to the same quarter of last year, although financial revenues for the quarter from Ripley Chile credit card showed a decrease of 0.9% compared to 1Q2012 due to a lower average interest rate. Risk Charges The decrease in financial revenues was offset by a lower risk charge in the quarter of 15.8%, which led to financial gross margin (financial revenues minus provisions for loan losses) to increase by 3.8%. The decrease in the risk of the portfolio is explained by the improvement in delinquency indicators, where non performing loans (more than 90 days delinquent) as a percentage of the portfolio decreased from 4.7% in the 1Q2012 to 4.4% in 1Q2013. Real Estate Business 1Q2013 The real estate business, which entirely corresponds to revenues from Mall of Concepcion, reported revenues of $1,208 million during 1Q2013. The Mall Concepcion was opened in October of 2012, so it is still in an early stage of maturity. SG&A business in Chile (ex Bank) 1Q2013 For Ripley Chile (without bank), the ratio of SG&A / total revenue increased from 32.7% in the first quarter of 2012 to 34.2% over the same period of the current year due to higher expenses related with the real estate business, new stores opened during 2012 that have not yet come to maturity and higher remuneration for sales goals accomplishment. Page 5 of 17

6 Ripley Bank Chile 1Q2013 Operating Income of Bank Ripley Chile decreases $775 million Financial Revenues Financial revenues from Bank Ripley Chile remained similar to last year. This is because the increase in interest revenues of 3.2% was offset by a decline in fees revenues. Risk Charges The risk charge had an increase of $832 million when compared to 1Q2012. During the first quarter of 2012 risk charges were lower than usual, so the bank reversed prudential provisions applied to new customers incorporated in previous year, which showed a better performance than expected. SG&A In the case of Bank Ripley Chile, expenses show virtually no change from last year. Page 6 of 17

7 Business in Peru Retail Business 1Q2013 Retail Gross Margin increases 31.3% in pesos and 30.6% in soles Sales Retail revenues increased 10.5% and 9.7% measured in pesos and soles respectively. Sales growth is explained mainly by the opening of five stores in 2012, along with the growth strategy adopted in the country. Sales margin During the first quarter of 2013, retail margins as a percentage of total sales reached 25.3%, a significant increase of 400 basis points compared with the 21.3% reached in the first quarter of This increase is due to an improvement in the purchasing process, which allowed entering a first quarter with a controlled level of inventories compared to last year, together with the company's strategies to promote and increase brand value to achieve better margins. The increase in sales plus the increase in margins explains the growth of a 30.6% retail gross margin in soles. SG&A In the Retail Business in Peru the SG&A as a percentage of total revenues showed a decrease from 26.1% in 1Q2012 to 25.9% in the same quarter of 2013, in line with the efficiency plans of the company. Ripley Bank Peru 1Q2013 Operating Income of Ripley Bank Peru decreases by 19,2% in pesos and 20,0% in soles. Financial Revenues Financial revenues decreased by 2.4% in soles. This is due to a decrease in fees income from 11.4% in soles, explained by the elimination of management fees in Risk Charge Risk charges increased by 7.4% in soles compared to the same period last year due to an increase in the cash advances, products associated with a higher risk rate. SG&A The selling and administrative expenses remained similar to those of the first quarter of 2012, in line with efficiency plans implemented by the company. Business in Colombia SG&A 1Q 2013 The selling and administrative expenses of Colombia during 1Q 2013 were $3,021 million. These expenses include administrative expenses of the administrative staff and most of the sales force of the three stores that opened in April. Page 7 of 17

8 Non- Operating Income 1Q2013 Financial Income: Financial income increased 6.7% compared to the same period in 2012 due to higher level of cash which was partly offset by lower rates. Financial Expenses: Financial expenses increased by 2.9% when compared to the 1Q2012, which is explained by an increase in debt associated with the group's investment plan. Results per unit adjustment: charges associated with unit adjustment decreased by $73million. Other gains and losses: This item increased in $487 million. Participation in related companies: Showed an increase of 40.1% when compared to the first quarter of The increase in the contributions of the three branches of malls society plus the incorporation Woodfell International Corp, explains the increase. Woodfell International Corp, that is owned in a 40% by Ripley, has the representation of the Forever 21 store in several Latin American countries, among them Chile, Peru, Colombia, Ecuador, Panama and El Salvador. Chile Selling Space (m2) Ownership (%) Opened Marina Arauco 58, % 1999 Mall del Centro Curicó 46, % 2006 Mall Plaza Sur 71, % 2008 Mall Plaza Alameda 60, % 2008 Mall Plaza Mirador Bío Bío 43, % 2012 Mall Concepción 41, % 2012 Total Chile 319,000 Total Chile x Ownership 114,782 Income of related companies (M$) % Part 1Q2013 1Q2012 Var Var% Inmobiliaria Viña del Mar S.A. 33,3% ,1% Nuevos Desarrollos S.A. 22,5% ,4% Aventura Plaza S.A. 40,0% ,5% Woodfell International Corp. 40,0% Total ,1% Peru Selling Ownership Space (m2) (%) Opened Aventura Plaza Trujillo 58,000 40% 2007 Aventura Plaza Bellavista 67,000 40% 2008 Aventura Plaza Arequipa 59,000 40% 2010 Aventura Plaza Santa Anita 50,000 40% 2012 Total Peru 234,000 Total Peru x Ownership 93,600 Total Selling Space x Ownership 208,382 Page 8 of 17

9 Business in Chile* ACCUMULATED Business in Chile (MM$) 1T2013 % Ing 1T2012 % Ing Var MM$ Var % Revenues of Non-Banking Operations ,3% ,1% ,5% Retail Revenues ,2% ,9% ,9% Retail Revenues ,6% 0 0,0% N/A Retail Revenues ,1% ,9% ,0% Revenues of Banking Operations ,9% ,1% ,8% Total Revenues ,0% ,0% ,2% COST of Non-Banking Operations ,4% ,8% 447-0,4% Cost of Sales ,1% ,0% ,8% Cost of Sales ,6% ,8% ,7% COST of Banking Operations ,8% ,6% ,3% Total Cost ,3% ,4% ,2% Gross Profit ,7% ,6% ,9% SG&A ,9% ,5% ,5% EBIT ,8% ,1% ,0% EBITDA ,7% ,8% ,8% EBITDA RIPLEY CHILE S.A ,0% ,6% ,9% Business in Peru ACCUMULATED Business in Perú (MM$) 1T2013 % Ing 1T2012 % Ing Var MM$ Var % Revenues of Non-Banking Operations ,2% ,2% ,5% Revenues of Banking Operations ,8% ,8% ,8% Total Revenues ,0% ,0% ,5% COST of Non-Banking Operations ,7% ,7% ,8% COST of Banking Operations ,4% ,6% ,0% Total COGS ,5% ,2% ,7% GROSS PROFIT ,5% ,8% ,3% SG&A Expenses ,0% ,4% ,0% EBIT ,6% 312 0,4% ,0% EBITDA ,2% ,4% ,5% Business in Colombia ACCUMULATED Business in Colombia (MM$) 1T2013 % Ing 1T2012 % Ing Var MM$ Var % Revenues of Non-Banking Operations Revenues of Banking Operations Total Revenues COST of Non-Banking Operations COST of Banking Operations Total COGS GROSS PROFIT SG&A Expenses EBIT Consolidation adjustments are not reflected in the tables with the results by country. Figures in Chilean Peso Page 9 of 17

10 4. Retail Indicators RETAIL BUSINESS (Local Currency) Q 2Q 3Q 4Q 1Q RIPLEY CHILE RIPLEY PERU Variation in retail sales 11,3% 4,7% 13,8% 11,0% 2,5% Variation in retail same store sales 9,3% 7,2% 9,9% 7,6% 0,1% Retail Margin 23,9% 26,9% 23,4% 29,6% 26,1% Inventory Turnover Sales/m2 (USD) Variation in retail sales 13,3% 5,7% 12,7% 10,7% 9,7% Variation in retail same store sales 12,3% 2,8% 8,0% 1,0% 1,2% Retail Margin 21,3% 26,3% 21,6% 26,8% 25,3% Inventory Turnover Sales/m2 (USD) The information of Peru is estimated in Soles. The SSS of Chile, starting on February 2012, does not consider the store El Trebol that was closed temporaly after a fire damaged the full sotre at the end of February Inventory turns is calculated as inventories times 90 divided by the cost of operation of the quarter. The Sales/m2 are calculated for the last twelve months in local currency converted into dollars at the closing exchange rate number. 5. Credit Indicators FINANCIAL BUSINESS ($M) Q 2Q 3Q 4Q 1Q Credit Card Ripley Chile Bank Ripley Chile Bank Ripley Peru Gross loan portfolio Provisions Provisions/Total Loan 13,7% 13,7% 13,1% 12,0% 12,6% Number of credit cards with debt (Th) Write-offs net of loans of write-offs recoverie Gross loan portfolio Provisions Provisions/Total Loan 7,1% 6,9% 6,8% 6,8% 6,8% Write-offs net of loans of write-offs recoverie Gross loan portfolio Provisions Provisions/Total Loan 10,0% 9,8% 9,9% 9,3% 10,2% Number of credit cards with debt (Th) Write-offs net of loans of write-offs recoverie This is the write-off of net loans of write-off recoveries made in previous periods The gross loan portfolio for Colombia at the end of 1Q 2013 was MM$ 3. Page 10 of 17

11 6. Stores Selling Space Chile Peru SELLING SPACE Nº STORE OPENING Nº (m2) SELLING SPACE (m2) 1 Huérfanos may-64 1 Ripley Jockey Plaza oct-97 2 Barros Arana may-86 2 Ripley San Isidro nov-99 3 Viña del Mar jun-89 3 Ripley San Miguel nov-00 4 Temuco ago-90 4 Ripley Miraflores oct-01 5 Castellón dic-92 5 Max Cono Norte dic-02 6 Parque Arauco abr-93 6 Ripley Primavera nov-03 7 Plaza Vespucio sep-94 7 Ripley Asia ene-04 8 Puerto Montt oct-95 8 Ripley Chorrillos dic-05 9 Astor dic-95 9 Max Minka jul Puente oct Ripley Trujillo dic Rancagua nov Ripley Callao dic Valparaíso dic Ripley Chiclayo nov Marina Arauco dic Ripley Arequipa dic Antofagasta dic Ripley Piura dic Alto Las Condes oct Ripley Lima Norte dic La Serena sep Ripley Chimbote abr Calama abr Ripley Santa Anita ago Plaza Oeste sep Jirón de la Unión oct Plaza Tobalaba ago Huancayo dic Iquique mar San Borja dic El Trébol feb-03 Total Plaza Norte nov Florida Center abr Crillón oct Portal Temuco nov La Dehesa oct Curicó nov Talca nov Puerto Montt (Paseo del Mar) abr La Calera jun Outlet Maipú nov Quilpué nov Chillán nov Punta Arenas abr Plaza Alameda abr Plaza de los Ríos nov San Bernardo dic Los Andes nov Costanera jun Concepción oct-12 Total STORE OPENING Approximately 73% of the number of stores in Chile are leased, the rest are owned by the company, For instance, in Peru approximately 85% of the stores are leased, and 20% are owned by the company. Considering the analysis is in square meters, the percentage of area leased in Chile and Peru is 81% and 83% respectively. In some cases Ripley leases its stores to shopping centers where you have some percentage of ownership. In Marina Arauco and Curicó we own 33,3%, and in Alameda and Plaza Square South (San Bernardo) 22,5% and Peru 40% of the Malls in Trujillo, Arequipa Callao. In 1Q 2013, the company reduced the size of the store Ripley Curicó, in order to improve efficiency. Page 11 of 17

12 7. Financial Structure Financial Structure of nonbank business of Ripley Corp, and key ratios Non Banking business Cash 200 Total Debt (Short term debt down) 211 Net Debt Ripley Corp 1Q2013 1Q2012 ROE 1 5,0% 6,7% Margin EBITDA 2 7,1% 7,9% Non Banking business mar/2013 dic/2012 Financial net debt / Equity 3 0,45 0,39 Financial net debt / EBITDA Non Banking 4 4,5 4,0 Liquidity 5 1,53 1,77 ROA 6 3,6% 3,4% Earnings LTM / Average Equity LTM 2 EBITDA LTM/Revenues LTM 3 Financial debt net of cash of nonbank subsidiaries of Ripley Corp / total equity (non banking) 4 Financial debt net of cash of nonbank subsidiaries of Ripley Corp/ EBITDA LTM (non banking) 5 Total current Assets / Total Current Liabilities (non banking). 6 (Operating income + subsidiaries income) LTM/ total average assets (non Mar-2013 (Bn$) Mar-2012(Bn$) banking) LTM LTM: last twelve months ROE The indicator shows a decrease of 1.7 percentage points over the same period last year, mainly due to the decrease in earnings of the last twelve months. EBITDA Margin The 0.8 percentage point decrease in the indicator is due to lower margins, mainly observed in the second and third quarters of 2012 and are included in the calculation period, despite a positive turnaround from the 4th quarter 2012 that continued in the first quarter of 2013, as previously explained in the document. Financial Net Debt/Equity The indicator increased by 0.06 points since an increase in net financial debt due to the investment plan of the company. Financial Net Debt /EBITDA Non Banking The company is in the middle of a major growth plan, which includes the opening of a new country as is the case of Colombia, and store openings and new shopping centers in Chile and Peru. All this growth was partly financed by increased debt, which generates a series of pre-operating expenses that reduce the company's EBITDA, affecting the indicator, which should tend to revert to the extent that new projects begin to mature. Liquidity Liabilities maturing in early 2014, which were considered as non-current, became current, which together with an increase in trade payables explain the increase in current liabilities, which explains the decrease of the liquidity ratio. This decrease was partly offset by an increase in current assets as cash and an increase in trade. ROA The indicator shows an increase of 0.2 percentage points over the same period last year, mainly due to an increase in operating income observed during the first quarter of 2013 compared to the first quarter of Page 12 of 17

13 Balance Sheet and Income Statement The complete Financial Statements of Ripley Corp and Chile are on the website of the Superintendencia de Valores de Chile ( Page 13 of 17

14 A. Balance Ripley Corp NON BANKING OPERATIONS (CLP Million) mar/2013 dic/2012 Var$M Var % ASSETS Current Assets Cash and Cash Equivalents 55,958 87,134-31, % Other Financial Assets, Current % Other Non-Financial Assets, Current 39,330 40, % Trade and Other Receivables, Net, Current 227, ,787-22, % Notes and accounts receivable from related parties, Current 2,135 1, % Inventories 190, ,134-7, % Recoverable Taxes 34,353 36,032-1, % Total Current Assets 550, ,902-63, % Non Current Assets Other Financial Assets, Non-Current Other Non-Financial Assets, Non-Current 7,521 7, % Trade and Other Receivables, Net, Non-Current 139, , % Equity Method Accounted Investments in Associates 142, ,550 1, % Intangible Assets, Net 38,913 38, % Property, Plant and Equipment, Net 268, ,114 5, % Investment Property 50,004 48,705 1, % Deferred Tax Assets 59,579 55,062 4, % Total Non-Current Assets 706, ,251 12, % Total Non Banking Operations Assets 1,256,709 1,308,152-51, % LIABILITIES mar/2013 dic/2012 Var $M Var % Current Liabilities Other Financial Liabilities, Current 145,165 59,746 85, % Trade and Other Payables Net, Current 181, ,932-72, % Notes and accounts payables to related parties, Current 16,005 12,821 3, % Other Provisions, Current 1,903 1, % Deferred Tax Liabilities 842 3,691-2, % Employees benefits provisions, Current 8,213 9,511-1, % Other Non-Financial Liabilities, Current 5,170 5, % Total Current Liabilities 359, ,853 12, % Non-Current Liabilities Other Financial Liabilities, Non-Current 210, ,977-73, % Payable accounts 4,033 4, % Notes and accounts payables to related parties, Non- Current 0 1,487-1,487 Deferred Tax Liabilities 14,109 14, % Employees benefits provisions, Non-Current 5,789 5, % Total Non-Current Liabilities 234, ,675-74, % Total Non Banking Operations Liabilities 593, ,529-62, % Page 14 of 17

15 BANKING OPERATIONS mar/2013 dic/2012 Var M$ Var % ASSETS Cash and Bank Deposits 38,491 39,714-1, % Funds to be cleared 323 1, % Financial assets held for trading 30,652 37,514-6, % Investment collateral under agreements to repurchase 0 2,062-2,062 N/A Interbank Loans 2,476 3,984-1, % Loans, net of reserves for loan losses 360, ,904-22, % Available-for-sale financial assets 9,917 1,552 8, % Investments in other companies % Intangible assets 15,028 14, % Fixed assets 5,198 5, % Current tax assets 1, % Deferred tax assets 4,636 4, % Other assets 7,750 7, % Total Assets 476, ,077-25, % TOTAL BANKING ASSETS 1,732,888 1,810,229-77, % LIABILITIES mar/2013 dic/2012 Var M$ Var % Demand deposits 4,379 4, % Agreements of financial derivatives Time deposits and savings accounts 281, ,406 10, % Investments sold under repurchase agreements 0 2,040-2,040 Deposits from credit institutions 21,324 40,265-18, % Marketable debt securitites 49,370 50,914-1, % Other obligations 5,047 5, % Current tax liabilities % Deferred tax liability % Provisions 3,145 4,430-1, % Other Liabilities 17,673 17, % TOTAL BANKING LIABILITIES 384, ,352-13, % TOTAL LIABILITIES 978,006 1,053,882-75, % RIPLEY CORP EQUITY mar/2013 dic/2012 Var M$ Var % Issued Capital 203, , % Accumulated Profit (Loss) 398, ,877 4, % Issued Premium 162, , % Other Reserves -10,033-4,406-5, % Equity Attributable to Equity Holders of Parent 754, ,847-1, % Minority Interest % Total Equity 754, ,348-1, % Total Equity and Liabilities 1,732,888 1,810,229-77, % BANKING OPERATIONS mar/2013 dic/2012 Var M$ Var % Page 15 of 17

16 B. Income Statement of Ripley Corp NON BANKING OPERATIONS (CLP millions) mar/2013 mar/2012 Var $M Var % Revenues 259, ,253 11, % Cost of Sales -169, , % Gross Margin 89,913 79,040 10, % Distribution Costs -1,163-1, % Administrative Expenses -85,148-76,018-9, % Other Operating Income (Expenses) Financial Income % Financial Costs -5,335-5, % Other subsidaries income (expenses) 2,599 1, % Exchange differentials Inflation-index monetary units % Income before taxes 1, ,177 Income taxes 1,108 1, % Net Income 2, , % BANKING OPERATIONS mar/2013 mar/2012 Var $M Var% Interest revenue 27,376 26, % Interest expense -4,762-5, % Net interest income 22,613 21,482 1, % Fee income 6,487 7, % Fee expense % Net fee income 5,878 6,964-1, % Net gains from mark-to-market and trading % Exchange differences, net % Other operating income % Total operating income 28,960 29, % Provision expense -6,824-5,648-1, % NET OPERATING REVENUE 22,137 23,474-1, % Personnel expenses -7,101-6, % Administrative expenses -9,284-9, % Depreciation and amortization % Other operating expenses % TOTAL OPERATING EXPENSES -17,196-17, % OPERATING INCOME 4,941 6,465-1, % Net income before taxes 4,941 6,465-1, % Income tax -1,407-1, % Net Income 3,534 4,966-1, % Net Profit Atributable to: N/A Net Profit Attributable to Equity Holders of Parent 5,964 5, % Net Profit Attributable to Non-Controlling interest RIPLEY CORP NET INCOME 5,964 5, % Page 16 of 17

17 Investor Relations John Paul Fischer M. Telephone: (56 2) Website: Click on inversionistas at the bottom of the page. The information in this report was drawn up on the basis of the financial statements reported to Chile s Superintendence of Securities and Insurance (SVS). Ripley Corp S,A, assumes no liability for damage, harm and/or loss that may arise from the interpretation of this release or the evolution of markets, in particular the stock exchange. Page 17 of 17