1 May 2012
One of the biggest holdings of the department store business in Chile and Peru, and starting operations in Colombia CHILE since 1956 PERU since 1997 38 department stores 236 Th. m2 of selling space 47 branches of Banco Chile 1,152 Th. credit cards with debt Loan portfolio: MUS$ 1,143 Strategic alliance with Mall Plaza TOTAL REVENUES PERU 30% 16 Department stores 128 Th. m2 of selling space 16 branches of Banco Peru 499 Th. credit cards with debt Loan Portfolio: MUS$ 381 40% ownership of Aventura Plaza 2 Figures as of Dec. 2011 -USD/CLP: 519 CHILE 70%
56 years of history 1956 First store in Santiago 1976 Credit business beginning 1985 First department store 1993 Parque Arauco biggest store in South America / New image positioning 1997 First store in Peru 2000 Insurance brokerage and e-commerce 2002 Bank Chile 2003 Opening of Hong Kong office / local bond of UF 6.500.000 (MUS$257) 2005 IPO of. 2007 First store outside Lima (Trujillo). First shopping mall of Aventura Plaza S.A. JV in Peru 2009 Acquisition of 22.5% of Nuevos Desarrollos S.A.(Plaza Alameda. Plaza Sur and future developments) 2010 Financial Statements under IFRS 3 2012 announces new operations in Colombia
Market Information Market Cap: MUS 2.155 Free Float: 34.5% Daily Average Transactions (2011): MUS$ 4.0 Local IPO: 2005 Foreign Inv. 4.3% Mutal Funds 2.3% Pension Funds 13.9% Main Shareholders March 2012 Calderón Kohon 12.5% Free Float: 34.5% 800 Others 14.0% Stock Price Calderón Volochinsky 53.0% 700 600 500 400 300 200 100 4 0 01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012
1.300 1.200 1.100 1.000 900 800 700 600 500 400 300 900 800 700 600 500 400 300 200 100 0 RETAIL BUSINESS Revenues Evolution (USD M) 860 886 1,000 962 923 1,097 1,179 355 362 417 470 460 508 593 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 RETAIL CHILE 38 Stores Selling Space 235,520 m2 26% Market Share* RETAIL PERU 16 Stores Selling Space 128,292 m2 42% Market Share* 5 *Market Share (2011) Chile:. Falabella and Paris Perú: and Falabella
FINANCIAL BUSINESS Total Loans evolution (USD M) 454 445 412 404 384 400 286 576 684 894 1.011 695 755 743 193 231 317 349 286 331 381 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 CREDIT CHILE Credit Card Chile Bank Chile CREDIT PERU Peru Increasing the number of customers without increasing average debt per client More competitive credit card 1,152 thousand credit cards with debt Increasing the loan portfolio and the number of clients, with controlled risk Competitive interest rates 500 thousand credit cards with debt 6
REAL ESTATE Strategy based on developing new projects with high growth potential together with the industry leader Chile Nuevos Desarrollos S.A. (22.5% owned by the company) 2 shopping malls Peru Aventura Plaza (40% owned by the company) 3 shopping malls Mall Concepción (100% owned by the company) 90,000 m2 of construction 41,000 m2 of selling space. Chile Selling Space (m2) Selling Space (m2)* Ownership (%) Marina Arauco 57,968 19,303 33,3% Mall del Centro Curicó 45,911 15,288 33,3% Mall Plaza Sur 74,583 16,781 22,5% Mall Plaza Alameda 57,355 12,905 22,5% Mall Concepción** 41,000 41,000 100% Total Chile 276,817 105,278 7 Peru Selling Space (m2) Selling Space (m2)* Ownership (%) Aventura Plaza Trujillo 44,114 17,646 40% Aventura Plaza Bellavista 76,460 30,584 40% Aventura Plaza Arequipa 55,000 22,000 40% Total Peru 175,574 70,230 Total selling space 452,391 175,507 * Selling space x ownership *July 2012
RETAIL BUSINESS 8
RETAIL BUSINESS Attracting clients by adding new brands and increasing the value of current ones instead of appealing on price events. Optimizing price/quality ratio through better designs and materials. 9
Remodeling stores to improve the shopping experience. San Isidro Peru Parque Arauco Chile RETAIL BUSINESS Florida Center Chile Lima Norte Peru 10
Chile NEW STORES CHILE 4 New Stores 2012-2013 Costanera Costanera Costanera Center (2Q 2012) Total m2 : 15,815 Biggest store of Higher income segment Costanera Concepción (3Q 2012) Downtown Concepción Total m2: 7,976 Costanera 11
Chile NEW MALL CHILE Mall Concepción 3Q 2012 Total m2: 90,000 Selling Space m2: 41,000 2 mayor stores: and Jumbo 85 smaller stores 6 cinemas 22-storry tower for comercial offices Downtown Concepción 12
Peru NEW STORES PERU 9 New Stores: 5 in 2012 and 4 in 2013 Chimbote (2Q 2012) Total m2 : 3.810 Santa Anita (3Q 2012) Total m2 : 9.000 Jirón de la Unión (3Q 2012) Total m2 : 3.400 San Borja (4Q 2012) Total m2 : 9.000 Huancayo (4Q2012) Total m2 : 5.550 13
750.000 650.000 550.000 450.000 350.000 250.000 150.000 50.000 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% RETAIL BUSINESS CHILE 27.4% 27.2% 569,426 612.027 2010 2011 Retail Revenues (M$) Retail Margin % PERU 2.000.000 1.800.000 26.1% 25.4% 30,0% 25,0% 1.600.000 1.400.000 20,0% 1.200.000 1.000.000 1,369,628 1,598,047 15,0% 800.000 10,0% 600.000 400.000 5,0% 200.000-0,0% 14 2010 2011 Retail Revenues (ThS/.) Retail Margin %
FINANCIAL BUSINESS 15
FINANCIAL BUSINESS Increasing the number of customers without increasing average debt per client. Launching new Mastercard in Chile: Access to the Transbank network. Increasing the number of transactions. Puntos: Loyalty program created to incentive the use of our credit card. Alliance with Lan Pass and Claro: Access to new potential clients. 16
440.000 420.000 400.000 380.000 360.000 340.000 320.000 300.000 280.000 260.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000-460.950 410.950 360.950 310.950 260.950 210.950 160.950 110.950 180.000 160.000 140.000 120.000 100.000 80.000 60.000 40.000 20.000 0 FINANCIAL BUSINESS CHILE 162,357 170,590 392,000 385.558 2010 2011 Gross Loan Portfolio (M$) Financial Revenues (M$) PERU 420,855 471,034 891,937 1,026,205 2010 2011 17 Gross Loan Portfolio (ThS/.) Financial Revenues (ThS/.)
Chile STRONG RISK COVERAGE INDUSTRY BENCHMARK Cencosud Falabella Hites Walmart % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf % Provisions % Loan Portf Not Delayed 8,5% 77,7% 2,2% 77,2% 0,7% 85,5% 2,4% 72,4% 1,2% 78,3% 1-30 12,4% 11,5% 7,7% 10,5% 4,7% 8,2% 11,9% 10,3% 13,1% 7,6% 31-60 23,4% 3,3% 21,9% 3,8% 16,8% 2,6% 26,2% 4,8% 23,1% 4,0% 61-90 38,7% 2,2% 34,5% 2,5% 34,1% 1,4% 38,2% 3,9% 39,7% 2,9% 91-120 53,7% 1,8% 47,3% 2,1% 62,7% 0,9% 49,4% 3,4% 58,7% 2,8% 121-150 70,4% 1,8% 60,2% 1,8% 76,3% 0,8% 58,1% 2,7% 70,7% 1,8% 151-180 86,4% 1,7% 60,7% 2,0% 98,0% 0,7% 71,8% 2,5% 82,9% 2,3% Total 13,4% 100,0% 7,6% 100,0% 3,7% 100,0% 10,7% 100,0% 9,0% 100,0% Provisions Loan Portf Total NPL $ NPL/Total Loans (%) Provisions/NPL 51.726 31.258 43.109 14.107 28.864 385.559 412.307 1.174.273 131.351 321.339 20.646 24.690 27.303 11.292 22.587 5,4% 6,0% 2,3% 8,6% 7,0% 2,5 1,3 1,6 1,2 1,3 is the only player that makes a significant provision on not delayed portfolio 18 Source: Companies financial statements as of Dec 2011 NPL: loans that are 90 days or more past due
Colombia 19
Colombia RIPLEY COLOMBIA January 2012 announces new operations in Colombia Investment of USD 272 million for the next 4 years First store Open in 2013 City: Bucaramanga Shopping mall El Cacique CEO Colombia : Sergio Collarte (ex CEO Perú) 20
Colombia RIPLEY COLOMBIA 191 Population (millions) Población (Millones) Why Colombia? 112 46 40 29 29 17 Positive economic outlook Third largest population in Latinamerica It has one of the lowest risk classifications of the region Responsible government institutions Low development of the Department Stores business model Brasil 2.024 Mexico Colombia Argentina Peru Venezuela Chile GDP USD billions PGB Billones de US$ Nominal 1.004 351 285 283 199 154 Brasil Mexico ArgentinaVenezuela Colombia Chile Perú GDP per capita USD PIB per Cápita US$ Nominal Risk (EMBI) Riesgo (EMBI) Peru 5.196 Venezuela 1.087 Colombia 6.220 Argentina 595 Argentina Mexico 8.663 9.243 Brasil Colombia 182 160 Venezuela 9.773 Perú 157 Brasil 10.471 Mexico 138 21 Chile 11.587 Chile 129
Colombia BUSINESS PLAN Business Plan for Colombia: Retail and Financial Business The same products we offer in Chile and Peru Owned and leased stores Estimated numbers for year 10: Total Revenues(retail+fin): US$1.000 M Nº credit cards: 500.000 22 EBITDA: US$ 110 M
23 2011 Financials
560.000 460.000 360.000 260.000 160.000 60.000 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 600.000 500.000 400.000 300.000 200.000 100.000 0 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% FINANCIAL RESULTS CORP 287.052 304.016 815.789 894.548 2010 2011 Retail revenues (M$) Financial revenues (M$) 38,6% 38,1% 32,9% 32,2% 424.690 455.402 361.457 385.595 24 2010 2011 Gross Margin (M$) Gross Margin (%) 2010 2011 SG&A (M$) SG&A/Revenues %
60.000 50.000 40.000 30.000 20.000 10.000 0 270. 000 220. 000 170. 000 120. 000 70. 000 20. 000 50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5. 000 0 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% -8,0% -10, 0% -12, 0% -14, 0% -16, 0% -18, 0% -20, 0% FINANCIAL RESULTS CORP 9,0% 8,6% 99.402 103.107 63.233 69.808 50.012 55.296 2010 2011 Net Income (M$) EBIT (M$) EBITDA (M$) Mg EBITDA Quarterly EBITDA ($M) Quarterly Net Income ($M) 37.665 34.620 30.899 27.855 21.525 20.697 22.163 15.737 13.338 24.323 17.501 12.821 12.208 10.016 19.412 4.851 2.932 6.176 25 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
STRONG FINANCIAL POSITION Ratios Non Banking Cash Total Debt Net Debt (Short term below) Dec 2010 (CLP billion) Dec 2011 (CLP billion) dec-11 dec-10 ROE 7,5% 7,3% ROA 3,4% 3,4% Financial debt / Equity 0,3 0,3 Current ratio 1,6 2,0 26
Why invest in? Because It is a great player in the department store and financial retail business in Chile and Peru with 363.000m2 of selling space, and has a new business plan in Colombia. Has a clear and strong long-term strategic plan. All three economies (Chile, Peru and Colombia) are in good position to face the coming years. Peru has a low penetration in Retail business and is well positioned to capture growth. Colombia has low development in the department store business model. It has a diversified loan portfolio with a low amount of debt per client. A profitable and growing real estate business focused in young malls. 27
Disclaimer This presentation contains forward-looking statements. including statements regarding the intent. belief or current expectations of the Company and its management. Investors are cautioned that any such forward-looking statements are not guarantee of future performance and involve a number of risks and uncertainties including. but not limited to. the risks detailed in the company s financial statements. and the fact that actual results could differ materially from those indicated by such forward-looking statements. 28
29