RIPLEY CORP
CONTENTS RIPLEY CORP 2010 FOCUS CONCLUSIONS
Our Assets Revenues 2009: US$ 1,963 m Loans Portfolio: US$ 1,354 m 1.8 million of customer using Tarjeta Ripley 51 stores in the best commercial areas of Chile and Peru with more than 344,000 m 2 of selling space 112,000 m 2 of weighted selling space in shopping malls 48 branches of Banco Ripley in Chile 16 branches of Banco Ripley in Peru Second place on TOM in Chile Most recognized brand in department stores in Peru Figures in nominal CLP. Converted to US$ using March 31th FX rate of $524,46/US$
54 years of History 1956 First store in Santiago Credit business starts 1976 1985 First department store First store outside Santiago 1986 1993 Ripley Parque Arauco biggest store in South America / New image positioning First store in Peru 1997 2000 Insurance brokerage and e-commerce Opening of Hong Kong office / local bond for (MUS$257) 2003 2005 Ripley Corp IPO First store outside Lima (Trujillo) First shopping mall of Aventura Plaza S.A. JV in Peru 2007 2009 Acquisition of 22.5% of Nuevos Desarrollos S.A. and sale of the participation in mature malls Opening Los Andes store in Chile and Chiclayo store in Peru Financial Statements under IFRS 2010 4
Shareholders Structure Calderon family has been connected to the retail business for over 50 years Major Shareholders Free Float* Free Float 14.5% Calderon Group 65.5% Saieh Group 20.0% 5 *As of May 28th, 2010
6 Business Units
Retail Business Chile Peru Revenues evolution MUS$ Revenues evolution MUS$ Second place on TOM 39 stores Selling space 237,210 m 2 25% Market Share Second largest department store company 12 stores Selling space 106,575 m 2 46% Market Share 7 Figures in nominal CLP. Converted to US$ using March 31th FX rate of $524,46/US$
Financial Retail Business Chile Revenues and Net Loan Portfolio Peru Revenues and Loan Portfolio Important actor in consumer loan market Gross Loan Portfolio of Tarjeta Ripley: US$ 695 m Gross Loan Portfolio of Banco Ripley: US$ 400 m Fourth player in credit cards loan market Gross Loan Portfolio of Tarjeta Ripley: US$ 258 m 2.3 million cards issued 5.8 million Tarjeta Ripley cards issued 8 Figures in nominal CLP. Converted to US$ using March 31th FX rate of $524,46/US$
Real Estate Business Strategy is to focus in the development of new projects with higher growth with the leading company of the industry Chile Property of 22.5% of Nuevos Desarrollos S.A. (77,5% subsidiary of Mall Plaza) 2 shopping malls 5 sites for development 33% of Mall Marina Arauco and Curico Chile Selling space (m2) Ownwership (%) Marina Arauco 57,968 33 Mall del Centro de Curico 45,911 33 Mall Plaza Sur 74,583 22,5 Mall Plaza Alameda 57,355 22,5 Total selling space* 63,966 Peru Selling space (m2) Ownwership (%) Aventura Plaza Trujillo 44,114 40 Aventura Plaza Bellavista 76,460 40 Total selling space* 48,230 TOTAL SELLING SPACE* 112,196 * Weighted by ownership % Peru Property of 40% in JV Aventura Plaza S.A. with Falabella (40%) and Grupo Plaza (20%) 2 shopping malls 2 in construction and other 4 planned to open before 2014 9
CONTENTS RIPLEY CORP 2010 FOCUS CONCLUSIONS
Chile Increase Profitability
Increase Profitability 1 SETTING 2 3 OUR VALUE PROPOSAL TO CURRENT WOMEN NEEDS INTEGRATION & FOCUS ON CUSTOMER THE FAT WAS REMOVED, NOW GOING FOR MUSCLES 12
SETTING OUR VALUE PROPOSAL TO CURRENT WOMEN NEEDS Retail Business The Company was reorganized focused on the main source of income: The Women Adding new brands and increasing the value of current ones Increasing the number of clothing collections per season Optimizing price/quality ratio through better design and materials Leaving behind the image of Outlet Store Improving the shopping experience: - Store remodeling - Simple and friendly store; not overloaded - Sale s force training - Internet site upgrade Strong retail area, highly experienced professionals 13 13
INTEGRATION & FOCUS ON CUSTOMER Financial Business Change of business Model - Everything happens in the store - Integral Sales people Increasing client base focused on: - New program Captación express - Valuable alliances - More transactions Tarjeta Ripley must be in client s wallet Strong Loyalty Program - Reward the client, not just the cardholder Competitive pricing strategy by customer segment 14
THE FAT WAS REMOVED, NOW GOING FOR MUSCLES Optimization Great potential for growth in our existing selling space FIT Program 2.0: optimization process State of the art software 15
1Q 10 Retail Business Numbers Retail Sales Change 9,0% 11,5% 28,6% -1,9% -10,3% -7,9% 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 Retail Margin (%) 16 Figures in nominal CLP. Converted to US$ using March 31th FX rate of $524,46/US$
1Q 10 Financial Business Numbers 17 Figures in nominal CLP. Converted to US$ using March 31th FX rate of $524,46/US$
18 2010 PROFITABLE AND SUSTAINABLE GROWTH
Peru Increase Selling Space
Increase Selling Space 1 EXCELLENT 2 3 POSITION TO CAPTURE VALUE IN A GROWING MARKET THERE STILL IS SIGNIFICANT SPACE TO GROWTH LOW PENETRATION OF CONSUMER LOANS 20
21 EXCELLENT POSITION TO CAPTURE VALUE 13 years in the Peruvian market Most recognized brand on department stores in Peru 12 stores 106,000 m 2 of selling space 16 branches of Banco Ripley 900,000 customers using Tarjeta Ripley Loan Portfolio: US$ 258 m JV with Aventura Plaza, the most efficient shopping mall operator in Peru
THERE STILL IS SIGNIFICANT SPACE TO GROW Selling Space (Retail) 847.445 Selling Space per capita (m 2 / 1000 inhab.) 50 4x 7x 197.167 7 Peru Chile Peru Chile 22 Source: Ripley
23 We know our Customer Chiclayo Store
24 and the Customer know us Trujillo Store
LOW PENETRATION OF CONSUMER LOANS Consumer Loans per capita (US$) Consumer Loans/GDP(%) 25 Source: FMI, BCRP, BCChile
1Q 10 Retail Business Numbers 8,3% SGA 26
1Q 10 Financial Business Numbers 82,4% Financial revenues decreased 8,8% in Soles versus 1Q2009 Provision expense decreased 49% in Soles versus 1Q2009 Operating Result increased 44,9% in Soles versus 1Q2009 27
Duplicate selling space in 2013 To maintain today s Ripley leadership position in Peru 28
CONTENTS RIPLEY CORP 2010 FOCUS CONCLUSIONS
30 Duplicate Company Value
31 Contact Information Speaker Hernán Uribe Ripley Corp Member of the Board More Information www.ripley.cl Investor Relations Contact Alexander Cahn ir@ripley.cl (56-2) 694 1042