RIPLEY CORP presentation. March 2009

Transcription

1 RIPLEY CORP presentation March 2009

2 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main goals

3 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 2008: US$ 1,611 m (+6%) EBITDA 2008: US$ 153 m (+17%) Net Income 2008: US$ 43 m (+68%) Market Cap December 31 st 2008: US$ 836 m* Multiples in their lowest level ( P/B: 0.78 ) Ripley Corp stock price as of Dec 31st 2008: CH$ 275, US$ 0.5 Figures in US$ million as of Dec-08 (FX: $636.45/US$)

4 Ripley Today - 53 years of history First Store opened in Chile Credit business starts First department store in Santiago First department store outside Santiago Parque Arauco Store: Starts new positioning on higher segments First department store in Peru Insurance business starts Banco Ripley Chile First bond issue IPO JV Mall Aventura Plaza (Peru) First store outside Lima Capital Increase bond Is issue 4 new stores in Chile 1 new store in Peru Banco Ripley Peru (ex Financor) First Bond issue in Peru Distribution center in Chile 2009 Acquisition of 22,5% of Nuevos Desarrollos S.A.(JV with Mall Plaza Chile) Transfer of 3 stores in Chile Banco Ripley Chile Capital Increase

5 Ripley Today - shareholders structure Free Float 19.0% Pension Funds 20.5% Others 54.2% International Investors 19.7% Calderon Group 81.0% *20.0% Mutual Funds 5.0% Insurance Co 2.9% * A family member may sell 20% of Ripley due to liquidity needs Free float may increase Source: Ripley. Figures as of February 28th 2009

6 Ripley Today - department stores business Paris 25.5% La Polar 12.9% Ripley 23.8% Falabella 37.8% Ripley Chile Stores 39 Selling space 232,820 m 2 Revenues 2008 US$ 784 m Market Share 23.8% Ripley Peru Stores 11 Selling space 102,110 m 2 Revenues 2008 US$ 450 m Market Share 46.0% Ripley 46% Saga Falabella 54% Source: Ripley Figures as of Dec-08, Stores as of March 2009

7 Ripley Today financial retail business Chile Tarjeta Ripley Loans: US$ 824 m Revenues 2008: US$ 360 m Provisions/loans: 12.2% Peru Banco Ripley Peru Loans: US$ 300 m Revenues 2008: US$ 160 m Provisions/loans: 7.8% Banco Ripley Chile Loans: US$ 361 m Revenues 2008: US$ 102 m Provisions/loans: 5.6% Source: Ripley Figures as of Dec 2008 Figures in US$ million as of Dec-08 (FX: $636.45/US$)

8 Ripley Today shopping malls Chile Ownership in 9 Shopping malls, with 113,251 m 2 of weighted average selling space Fully owned malls revenues 2008: US$ 16 m On January 2009, Ripley bought 22.5% of Nuevos Desarrollos S.A.(JV with Mall Plaza Chile) including recently opened malls Alameda and San Bernardo Ripley Corp S.A. hired Citibank and Banchile to analyze a possible selling of its shopping malls 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

9 Ripley Today results EBITDA % 153 Revenues LTM Ripley Corp: US$ 1,611 m Ripley Chile: US$ 1,161 m Ripley Peru: US$ 449 m 15% 107 Op. Result Net Income 26 68% Figures in US$ million as of Dec-08 (FX: $636.45/US$)

10 Ripley Today revenues & EBITDA Revenues breakdown by business in Chile Revenues breakdown by country EBITDA breakdown by country 22% Financial 1% Real estate 22% Peru 23% Peru 77% Retail 78% Chile 77% Chile Figures as of Dec-08

11 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main aims

12 Ripley Chile 2.0 financial business Tarjeta Ripley Loans Portfolio 4Q08: US$ 824 m Provisions/ Loan Portfolio 4Q08: 12.2% Provisions/ Gross Loan portfolio Gross Loan portfolio 561 Net Loan portfolio 6.9% 7.4% 8.4% 12.2% Provisions Figures in US$ million as of Dec-08 (FX: $636.45/US$)

13 Ripley Chile 2.0 shopping malls Changing mature shopping malls business for a growing one Shopping Mall Leasing Space (M 2 ) % Ownership Ripley Panoramico 5, % Mall del Centro 18, % Mall del Centro Rancagua 13, % Calama 44,206 25% Marina Arauco 57,968 33% Mall del Centro Curico 45,911 33% Mall Concepcion (Under construction) 90, % Mall Plaza Sur 74, % Mall Alameda 57, % Ripley acquired 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 (27% market share) Source: Estrategia Newspapaer (March 12th 2009)

14 Ripley Chile new flatter structure Current Andrés Roccatagliata CEO Commercial Financial Products Channels and Services Risk Operations & Technology Logistics HH.RR Before CEO Retail Division Financial Business Division Corporate Services Division

15 Ripley Chile 2.0 efficiency and synergies 2008 New organization n the company New distribution center Synergies between retail and credit divisions Efficiency plan start up 2009 Cost efficiency program Profitability of the operation Increasing transactionality of Tarjeta Ripley (Gains on major transactional industries) Execution of strategic plan Focus on recovery Loan portfolio management Diminution of loans in riskier segments SG&As net dep/ Averge m2 (US$) -14.6% 1,712 1,462 Figures in US$ as of Dec-08 (FX: $636.45/US$)

16 Ripley Chile 2.0 capex forecast US$ 78 m Option to buy 22.5% of new Mall Plaza shopping malls (US$ 30 m) Banco Ripley Chile capital increase (US$ 33 m) Improvements in stores IT Figures in US$ million as of Sep-08 (FX: $551.31/US$)

17 Ripley Chile 2.0 goals for 2009 Continue improving efficiency (SGAs/m 2, Sales/m 2 ) Keep risk controlled, focusing on collection Reduce levels of inventory

18 BANCO RIPLEY CHILE

19 Banco Ripley Chile New model New business model focused on capturing core competences associated to belonging to Ripley group Elimination of sales force and new managing structure, causing extraordinary charges for US$ 4.2 m Capital increase of US$ 11 m due to charges associated to this change and 2008 operation. On January 2009, was made a second capital increase of US$ 17.6 m, due to a diminution on the equity associated to accounting modifications of IFRS Figures in US$ as of Dec-08 (FX: $636.45/US$)

20 Banco Ripley Chile New strategy Development of financial products offer to the costumers of Banco Ripley We know their behavior: Where and what they buy, how they pay Develop a strong new value offer for Ripley costumers New structure (arrival of Osvaldo Barrientos)

21 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main aims

22 Ripley Peru stores 1 new store new stores 2009

23 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 (Trujillo, Callao) 1 new opening in 2009

24 Ripley Peru - revenues 102,110 Selling Space Revenues 87, , Total revenues increased 40.9% in real pesos (12.7% in soles) SG&As diminshed from 25.5% to 24.3% in 2008 Figures in US$ million as of Dec-08 (FX: $636.45/US$ )

25 Ripley Peru - results Net Income 38 EBITDA % % 38 Op. Result % Operational margin passed from 5.4% to 6.7% EBITDA margin passed from 7.3% to 8.4% Figures in US$ million as of Dec-08 (FX: $636.45/US$ )

26 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: $636.45/US$ )

27 Ripley Peru banco ripley peru Loans portfolio Dec-08: US$ 300 m Provisions/ Loans portfolio Dec-08: 7.8% 5.8% 6.7% 6.7% CAGR = 30% 7.8% Loan portfolio Provisions/ Loan portfolio Figures in US$ million as of Dec-08 (FX: $636.45/US$ )

28 Ripley Peru banco ripley peru Revenues 2008: US$ 160 m Income 2008: US$ 21 m Net Income % 160 Revenues % Figures in US$ million as of Dec-08 (FX: $636.45/US$ )

29 Ripley Peru goals for new stores Selective growth on loans portfolio Keep risk controlled Improve operating efficiency

30 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main aims

31 Financing - debt profile Net debt 2007: US$ 573 m Cash 2007: US$ 90 m 2008: US$ 515 m Cash 2008: US$ 120 m Dec-08 Dec-07 Cash Short Term Debt Long Term Debt Figures in US$ million as of Dec-08 (FX: $636.45/US$ )

32 Financing - Financial ratios benchmark NFD / EBITDA 4,2x 4,2x 3,3x 3,7x Ripley Corp Cencosud Falabella D&S Source: FECU ( Includes securities bonds

33 Financing - Financial ratios benchmark NFD/ Equity 1,1x 0,9x 0,6x 0,5x Ripley Corp Cencosud Falabella D&S Source: FECU ( Includes securities bonds

34 Ripley Corp 1. Ripley Today 2. Ripley Chile Ripley Peru 4. Financing 5. Main goals

35 Main goals Consolidation of Chilean business Focus on efficiency and synergies Focus on client with an integrated offer of retail and financial services Continue with a conservative strategy on the management of loan portfolio Keep leading and growing in Peru

36 Contact information Speaker Hernan Uribe CFO Ripley Corp Investor relations Alexander Cahn - acahn@ripley.cl Phone: (+56-2) Andrés Oksenberg - aoksenberg@ripley.cl Phone: (+56-2)

37 RIPLEY CORP presentation March 2009