Ripley Chile S.A. Emisión de Bonos Desmaterializados Series
Transcripción
Ripley Chile S.A. Emisión de Bonos Desmaterializados Series
Ripley Corp Presentation September 2009 RIPLEY CORP One of the largest department stores companies in Chile and Peru RIPLEY CORP Revenues 2008: MUS$1,928 EBITDA 2008: MUS$ 180 Market Cap Jun-09: MUS$ 1,456 CHILE 38 Stores - Selling space 232,820 sqm Revenues 2008: US$1,390 million Loan Portfolio Jun-09: MUS$ 827 PERU 11 Stores – Selling space 102,110 sqm Revenues 2008: US$ 538 million Loan Portfolio Jun-09: MUS$ 272 Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ CONTENTS • Ripley - 53 years of history • Recent Developments • Next Steps • Why Invest in Ripley? 3 MORE THAN 50 YEARS IN THE RETAIL INDUSTRY 1956 First store in Santiago 1976 Credit business beginning 1985 First department store 1986 First store outside Santiago 1993 Ripley Parque Arauco Æ biggest store in South America / New image positioning 1997 First store in Peru 2000 Insurance brokerage and e-commerce 2003 Opening of Hong Kong office / local bond of UF 6,500,000 (MUS$257) 2005 IPO of Ripley Corp. 2007 First store outside Lima (Trujillo). First shopping mall of Aventura Plaza S.A. JV in Peru 2009 Acquisition of 22.5% of Nuevos Desarrollos S.A.(Plaza Alameda, Plaza Sur and future developments) Sale of the participation in Mall Calama, Mall del Centro, Mall del Centro Rancagua and Mall Panoramico. 4 ONE OF THE LARGEST DEPARTMENT STORES COMPANY IN CHILE AND PERU • Third player on department store business in Chile and second in Peru • Sales of US$ 1.8 billion • MUS$ 1,323 in Chile (LTM) • MUS$ 504 in Peru (LTM) • 38 Stores in Chile and 11 in Peru, with a total selling space of 334.930 sqm Market Share in Chile (Retail Sales 2008) Paris 24.4% Market Share in Peru (Retail Sales 2008) Ripley 22.6% Falabella 54% Falabella 40.1% Source: Ripley and Companies Press Releases La Polar 12.9% Source: Ripley Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 5 Ripley 46% AN IMPORTANT PLAYER IN CONSUMER CREDIT IN BOTH COUNTRIES • Sixth actor in consumer credits market in Chile with a loan portfolio of MUS$1,335 (Tarjeta Ripley + Banco Ripley) as of Dec-08 • Loan Portfolio of Tarjeta Ripley: MUS$ 967 • Loan Portfolio of Banco Ripley: MUS$ 368 • Fifth actor in consumer credits market in Peru with a loan portfolio of MUS$359 as of Dec-08. • 5.6 million cards issued in Chile and 2.1 million in Peru Market share in Chile (consumer credits 2008) Market share in Peru (consumer credits 2008) Other Small Retailers 6.7% Other Banks 6.8% Scotiabank 12.5% Santander 21.1% Interbank 17.0% Corpbanca 4.6% Falabella 11.9% Ripley 8.3% BBVA 4.7% La Polar 4.9% Banco De Chile 17.7% Banco Ripley + Tarjeta Ripley 6.4% Banco Paris + Tarjeta Mas 6.9% BCI 9.4% Source: SBIF (w/o considering BancoEstado) Falabella + CMR 10.8% Continental 7.7% BCP 31.0% Others del Trabajo 1.2% 4.3% Source: SBS Peru Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 6 Citibank 6.0% SUCCESSFUL BUSINESS MODEL • Integration of synergic businesses gives a complete knowledge of client needs • Focus on its target market with a clear value proposal and focused marketing efforts Value Proposal Brands and Fashion Convenience and Financing Purchase experience Measures Result • Strengthening own brands • Wide variety of fashion products • Permanent innovation • Benefits / Discounts • More than 8,000 associated stores • Quality product • Convenient financing • Integral service 7 Leadership in target segment Transactional card and client fidelity Purchase repetition STRONG CORPORATE IMAGE • Important characters helped us to build a very strong corporate image and brand • Cindy Crawford: IPO of Ripley Corp • Penelope Cruz: Face of the company (2006-2008) 8 CONTENTS • Ripley - 53 years of history • Recent Developments • Next Steps • Why Invest in Ripley? 9 FIRST HALF 2009 RESULTS (MUS$) 32.8% 40.7 27.4 1S 2008 1S 2009 Net Income MCH$ as of Jun-09 1H 2008 1H 2009 Variation Var % Revenues 881.8 780.6 -101.2 -11.5% Operating Result 63.8 -35.6 -99.4 -255.7% Non Operating Result -14.9 43.4 58.3 Net Income 40.7 27.4 -13.4 -32.8% Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 10 FIRST HALF 2009 REVENUES IN CHILE (MUS$) Evolution of financial revenues and loan portfolio (MUS$) Revenues in Chile 1H 2009 (MUS$) CAGR*: 13.9% 661 10.1% 967 595 827 204 658 195 503 4.5% 450 931 670 522 423 394 214 231 269 1H 2009 2003 2004 2005 422 350 314 12.3% 1H 2008 Retail Financial 2006 2007 Gross Loan Portfolio Retail Revenues in Chile fell 12.3% (SSS -15.8% in real pesos) Financial revenues in Chile fell 4.5% due to lower loan portfolio Source: SBIF Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 11 2008 . Financial revenues Jun-09 FIRST HALF 2009 REVENUES IN PERU Revenues in Peru 1H 2009 (Million Soles) Evolution of financial revenues and loan portfolio Banco Ripley Peru** (MUS$) 359 CAGR: 35.7% 272 267 202 9.2% 608 1H 2008 Revenues Peru 552 92 1H 2009 2006 191 185 112 2007 Loan Portfolio 2008 . Jun-09 Financial revenues Revenues in Peru decreased 9.2% in real soles, 15.7% in pesos (SSS -13.1% in real soles ) Important conversion effect of Peruvian financial statements due to the appreciation of Chilean peso v/s Peruvian sol Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 12 **Banco Ripley Peru doesn’t consolidate line by line with financial statements of Ripley Corp S.A. FIRST HALF OPERATING RESULT (MUS$) -29.2 -15.7 63.8 -35.6 -54.8 0.3 Operating Result 2Q 2008 ∆ Chilean ∆ Peruvian Margin (before Margin provisions) ∆ Provision ∆ Total SG&A charges Chile Operating Result 2Q 2009 Reduction in consumption impacted retail sales and margins, specially durable goods Conservative approach and reduction of consumer confidence caused a drop in loan portfolio Financial revenues decreased MUS$ 9.1 due to a lower Loan Portfolio Provision charges increased 94.6%, equivalent to a rise of MUS$ 54.8 due to increased delinquency Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 13 CONTROLLER GROUP HAS AN IMPORTANT KNOWLEDGE OF THE BUSINESS • Calderon family have been connected to retail business for over 50 years Æ excellent knowledge of the industry • In May 2009, Inversiones Bujorico Ltda.(Calderon Kohon Family) subscribed with Inversiones Conca S.A. (related to Chilean entrepreneur Alvaro Saieh) a promise to sell 20% of Ripley. The first part of this agreement was executed on August 24th, with the sale of 5% of Ripley Corp to Corpvida Insurance Company (Related to A.Saieh). The remaining 15% should be completed before November 30th 2009. • Alvaro Saieh has a successful experience on very complementary businesses to Ripley (food retail, banking and real estate). Major Shareholders Inversiones Bujorico Ltda.** 15% Free Float 19% Inversiones R S.A.* 61% Corpvida S.A (Related to A.Saieh) 5% Free Float Retail 54.4% Insurance Companies 1.2% Mutual Funds 7.3% International Investors 19.7% Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 14 Pension Funds 16.0% SELLING PROCESS OF NON STRATEGIC AND MATURE SHOPPING MALLS BEFORE Shopping Mall Panoramico Mall del Centro Santiago Mall del Centro Rancagua Mall Calama Marina Arauco Mall del Centro Curico Total Weighted Average Selling Space CURRENT Selling Property Space (m2) Ripley 5,671 100% 18,917 100% 13,046 100% 44,206 25% 57,968 33% 45,911 33% 81,860 Shopping Mall Chile Marina Arauco Mall del Centro Curico Mall Plaza Sur Mall Plaza Alameda Weighted Average Selling Space Chile Shopping Mall Peru Trujillo Callao Weighted Average Selling Space Peru Total Weighted Average Selling Space Selling Property Space (m2) Ripley 57,968 33% 45,911 33% 74,583 22.5% 57,355 22.5% 63,966 Selling Property Space (m2) Ripley 44,114 40% 76,460 40% 48,230 112,196 Î Strategy is focused in divesting on mature shopping malls and participating in the development of new projects with higher profitability with the leading group of the industry . • Selling process of mature shopping malls in Chile, with a total price of MUS$136 and a net income of over MUS$94 • Acquisition of 22.5% of Nuevos Desarrollos S.A which belongs to Mall Plaza. (Chile) • JV in Peru called Aventura Plaza, with 2 opened shopping malls and 40% of ownership 15 CHANGE ON WRITE OFFS POLICY Before Past Due Days 0 30 X% % Provisioned 60 90 180 Y% Z% 100% Provisions / Loan Portfolio = 20.6% Gross Loan Portfolio = MUS$ 827 Current Past Due Days 0 % Provisioned 30 X% 60 90 180 Y% Z% 100% WRITE OFF Provisions / Loan Portfolio = 9.3% Gross Loan Portfolio = MUS$ 723 Falabella = 6.4% Cencosud = 12.5% • Write off of a past due loan is made after 180 days (previously it was done after 360 days) • No effect in the income statement or cash flow, just in the balance sheet • New policy allows to be comparable with other players of the industry 16 360 WRITE OFF NEW DISTRIBUTION CENTER • New Distribution center has the most advanced technology in South America: • Improve customer service • More efficient operations • Increase inventory turnover • The new facility was officially inaugurated on June 22nd, with the assistance of Chilean President Ms. Michelle Bachelet 17 SUCCESSFUL BOND ISSUE – RIPLEY CHILE On June 25th 2009, Ripley Chile made a successful issue of UF 3,000,000 (MUS$118 approx.) • Series E: • UF 1,000,000 (MUS$ 39) • Duration: 11 years (21 year term) • Rate: 5.04% (spread of 167 bps over Chilean Central Bank) • Series F: • UF 2,000,000 (MUS$ 79) • Duration: 4.7 years (7 year term) • Rate: 4.45% (spread of 170 bps over Chilean Central Bank) On July 27th 2009 Ripley Chile prepaid old series A and B for UF 4.462.053 (MUS$ 176), using both proceeds from the series E and F and available cash. Considering prepayment of series B: Î Annual Savings of MUS$1 in financial expenses Î Savings in Present Value: MUS$6.2 Î Average Duration increases from 6.1 to 6.8 years Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 18 FINANCIAL STRUCTURE MUS$ as of Jun-09 JUNE 2008 JUNE 2009 Proforma Aug 10th 495.8 496 457.8 458 483.6 484 615.5 616 53 498.1 498 362.5 362 211.0 211 182 183.2 Jun-08 Cash 428.9 429 364.7 365 Jun-09 Short Term Debt Long Term Debt 128.5 129 Proforma Aug 10th Net Debt MUS$ as of Jun-09 182 Net debt decreased 30.3% from Jun-08 to Aug-09 167 166 152 2009-2010 maturities pre-financed with cash position 64 34 Jun 2009-2010 2011-2012 Cash 2013-2014 2015-2016 Strong cash position 2017-2030 Maturities Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 19 CONTENTS • Ripley - 53 years of history • Recent Developments • Next Steps • Why Invest in Ripley? Brands & Fashion (Variety and Design) Convenience and easy Financing Purchase experience 20 NEXT STEPS • New Face • Financial Business • Efficiency 21 NEW FACE We hired the BEST fashion face 22 NEXT STEPS • New Face • Financial Business • Efficiency 23 FINANCIAL BUSINESS – RIPLEY CARD “MAKEOVER” NEW IMAGE BETTER BENEFITS 24 BEST LOYALTY PROGRAM FINANCIAL BUSINESS – IMPROVING PERCEPTION First results: Important growth on benefits perception, lower interest rates and identification with Ripley Card Ripley Card March 09 Ripley Card July 09 Offers the best benefits 13 19 Allows to buy in many associated stores 23 28 Has the lower interest rates and fees 11 18 Is the best card 12 15 Is the most convenient 13 18 Is always concerned on improving 19 25 Is for people like me 12 24 Significant Variation Source: IPSOS. Total Base N=300. 25 FINANCIAL BUSINESS – TARGET: PORTFOLIO GROWTH 920 Jun-08 933 Sep-08 967 Dec-08 914 Mar-09 359 827 Jun-09 Loan Portfolio Chile (MUS$ of each period) 307 297 Jun-08 Sep-08 297 Dec-08 Mar-09 Loan Portfolio Peru (MUS$ of each period) Î Increase loan portfolio both in Chile and Peru Take advantage of higher consumer confidence Better perception of Ripley Card Focus on activating customers with low use of card Taking advantage of Ripley’s data base Figures in real Chilean pesos as of Jun-09 converted to US$ using Jun 30th FX of $531.76/US$ 26 273 Jun-09 NEXT STEPS • New Face • Financial Business • Efficiency 27 EFFICIENCY – EXAMPLE: LOGISTICS • Since beginning of 2009 all the operations were consolidated at REDEX (new Distribution Center) •Reduction of 51,000 m2 of distribution • In the first year of operations were achieved international levels on the main KPI • Important savings of transport, HH.RR and logistics expenses Main Service KPIs 98.0% Precision of inventory 98.7% Store Fill Rate Expenses Reductions 2009 vs. 2008 97.8% 12% Fulfillment of Home delivery Transport 28 14% 11% HH.RR Logistics CONTENTS • Ripley - 53 years of history • Recent Developments • Next Steps • Why Invest in Ripley? 29 WHY INVEST IN RIPLEY? • Important player in the department store business in Chile and Peru: • Revenues of almost US$2 billion • 49 stores with over 330,000 sqm • Wide client base: • Over 4 million active customers of Tarjeta Ripley in Chile and Peru • Strong financial position • Conservative financial strategy • “Pre-financed” two years debt • Good debt profile • Focus 2009-2010 • Improve efficiency in Chile • Growth in Peru (3 new stores during 4Q 2009 and 2010) • Increase Loan Portfolio • Company is more sensitive to economic cycles compared to its peers • Stock price at attractive levels, reflecting the low period of the economic cycle • P/BV 1.2x 30 Ripley Corp Presentation September 2009