Presentación de PowerPoints2.pulso.cl/wp-content/uploads/2016/09/2333362.pdfINMOBILIARIA MALL VIÑA...

Ripley Corp 2nd Quarter 2016 Results September 2016

• Inmobiliaria Mall Viña del Mar: Stake increase, dividends distributions and current situation.

• Division of Aventura Plaza S.A.

• Change in accounting policy in real estate business.

• Agreement between Liverpool and Ripley’s controlling shareholder.

• Opening of Ripley store in Atocongo, Peru.

• Bond issuance and distribution of dividends by Banco Ripley Peru.

2Q16 HIGHLIGHTS

• Ripley Corp: EBITDA increases 10.2% and positive effect of discontinued operations, offset by non-recurring charges.

• Ripley Chile: Positive SSS and improving margins in retail; Bank’s net risk costs continues downward trend.

• Ripley Peru: Positive SSS and continued growth of the loan portfolio.

2Q16 RESULTS

• Retail: Focus on growth through profitability and efficiency.

• Bank: Growth focused in existing clients, developing new products to create a bank focused on people.

• Real Estate: Improve profitability as new projects launch and existing projects mature.

LOOKING FORWARD

INMOBILIARIA MALL VIÑA DEL MAR

HIGHLIGHTS

The stake increase of 16.7% in Inmobiliaria Mall Viña del Mar happened during 2Q16, therefore, the results of this quarter already represent a 50% stake of Ripley in the company.

During this past April, Inmobiliaria Mall Viña del Mar

distributed dividends for a total sum of MM$23,310, owning Ripley half of that amount.

Also, on May 31st the Court of Appeals unanimously accepted Inmobiliaria Mall Viña del Mar’s claim, declaring illegal the order of the Municipality that stopped the construction of the expansion of the mall. The legal process is, at the moment, being reviewed by the Supreme Court.

DIVISION OF AVENTURA PLAZA S.A.

On July of this year, the division of Aventura Plaza S.A. in Peru was finalized and was completed proportionally to the ownership that the entities held in such company.

Ripley will control the shopping centers Mall Aventura Santa Anita in the city of Lima and Mall Aventura Arequipa, among other assets.

Thus, Ripley Corp S.A. will increase its assets and liabilities accordingly and will consolidate line by line, starting the 3rd quarter of this year, the results of the new subsidiary Ripley Aventura S.A.

RIPLEY AVENTURA S.A. OWNS 100% OF MALLS AREQUIPA AND SANTA ANITA

HIGHLIGHTS

CHANGE IN ACCOUNTING POLICY IN VALUATION OF INVESTMENT PROPERTIES

The company has decided to modify its accounting policy regarding the valuation of investment properties of the real estate business.

Theses investments will be accounted at fair value instead of historical cost.

Positive adjustment to Ripley Corp’s Dec-15 net equity of MM$71,947.

Positive effect of MM$2,547 and MM$2,599 in the results till June 2016 and June 2015, respectively.

HIGHLIGHTS

THE EFFECT IS IN LINE WITH WHAT THE COMPANY HAS BEEN COMUNICATING REGARDING THE FAIR VALUE OF ITS REAL ESTATE

BUSINESS

LIVERPOOL AND THE PUCBLIC ACQUISITION OFFERING (OPA)

On July 5th was announced an Agreement of Association in Ripley Corp S.A. between Ripley’s current controlling shareholder and the Mexican company El Puerto de Liverpool.

Liverpool offers to buy up to 100% of the shares, at

CLP$420 per share, nevertheless, it will consider the offering successful if it is able to acquire at least 25.5% of the shares subscribed and paid by the company.

The Mexican company will have to get the approval of the Superintendence of Banks and Financial Institutions (SBIF) due to the fact that Ripley Corp S.A. owns Ripley Bank.

HIGHLIGHTS

OPENING OF RIPLEY STORE IN ATOCONGO, PERU

On august 26 of this year, the new Ripley store Atocongo, in Mall del Sur, located in the San Juan de Miraflores district, Lima, was opened. en la ciudad de Lima. 8,925 m2: distribuited in 3 floors. Includes selling

venue, fitting rooms, backoffice and bank.

The shopping center focuses on a public from social economic level C, young entrepreneurs and informal small business owners from San Juan de Miraflores, Villa el Triunfo and Villa El Salvador.

HIGHLIGHTS

BOND ISSUE AND DISTRIBUTION OF DIVIDENDS BY RIPLEY BANK PERU

On June 14th was executed the third financial instruments issuance of the year, which was for an amount of S/. 50 million Total demand of S/. 83 million, corresponding to 1.7x

the placed sum. On the other hand, that same month on the 29th, Ripley

Bank Peru distributed dividends to its parent company for a sum of S/. 30 million in retained earnings.

HIGHLIGHTS







2Q16 HIGHLIGHTS




2Q16 RESULTS




LOOKING FORWARD

2nd QUARTER 2016 RESULTS

RIPLEY CORP 2Q16 RESULTS REVENUES : 6.8% increase Positive SSS in both countries of operation 8.2% growth of consolidated loan portfolio

EBITDA: increases 10.2% to $36,725 Increase in consolidated gross margins NET INCOME CONTINUED OPERATIONS: $12,960 in 2Q16

Non-recurring charges of $5,033 related to the new service model & restructuring

DISCONTINUED OPERATIONS: Recorded losses of $1,187, lower than the $3,456

obtained in 2Q15 Closing process in Colombia progressing according to

plan

Amounts in CLP millions

GROSS MARGIN IMPROVEMENT AND POSITIVE EFFECT OF COLOMBIA OFFSET PARTIALLY BY NON-RECURRING CHARGES

REVENUES: rise of 2.0% (1.9% SSS)

Increase in the apparel departments, both men and women as well as home electronics

GROSS MARGIN: Increased in 196 bps Bigger volume of soft goods EBITDA: decreased to $4,122 SG&A increased 20.9% driven by non-recurring expenses of

hiring and staff training associated with the new service model of stores

IMPROVEMENT IN GROSS MARGIN IN ACCORDANCE WITH THE COMPANY’S STRATIGIC PLAN

RIPLEY CHILE RETAIL BUSINESS



Chile Retail

Revenues

Gross Margin/Sales

182,803

186,516

2Q15 2Q16

29.5

31.4%

-1.9%

1.9%

SSS

2Q15 2Q16

REVENUES: 3.5% increase Loan portfolio rose 2.3% OPERATIONAL COSTS: 15% decrease Decrease of 27.5% in net risk cost Funding costs increase 9.2%

Impact of higher rates of the banking system

NET PROFIT increased 38.3% to $11,369

SG&A decreased 6.5% compared to 2Q15

STRONG GROWTH IN NET PROFIT DRIVEN BY AN IMPROVEMENT IN NET RISK COST

RIPLEY CHILE FINANCIAL BUSINESS



Ripley Chile Bank

Net Income

Loans

Provision/ Loans

8,220

11,369

2Q15 2Q16

713,443

729,608

2Q15 2Q16

10.5% 9.7%

MIGRATION TO RIPLEY MASTERCARD - CHILE

Source: Chilean Banking Regulator (SBIF) Amounts in CLP billions


In 2016

Resume growth in loan portfolio

Greater selectivity with new clients based on risk profile

Continue with existing client migration from Private Label Card to Mastercard

Temporary rise at the beginning of 2016 due to write-offs in refinanced portfolio after higher risk observed in early 2015, which however, has been decreasing during the last months

RISK COST CONTINUES ITS POSITIVE TREND, SINCE ITS PEAK IN FEBRUARY 2015, WITH A SLIGHT INCREASE IN JUNE

47% 53%

June 15

58% 42%

June 16

Mastercard

Traditional

0,1%

0,2%

0,3%

0,4%

0,5%

0,6%

0,7%

0,8%

0,9%

1,0%

580

600

620

640

660

680

700

720

740

760

Loan Portfolio

CREDIT RISK SHOWING POSITIVE TREND

RISK CONTINUES TO BEHAVE IN LINE WITH EXPECTATIONS

Improvement in origination led to a positive behavior in credit risk

Early NPL’s improving

Credit risk maintains the trend of previous years

Renegotiated loans keep steady, with a marginally more accentuated decrease during the month of May

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic

Costo por Riesgo (Sin provisiones contingentes ni prudenciales)

2014 2015 2016

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic

Costo por Riesgo

Amounts in CLP Billion


14%

16%

18%

20%

22%

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

emb

er

NPL's 1-90 Days

2014

2015

2016

3

4

5

6

7

8

Net Provision Expense (Does not consider contingent and prudencial provisions)

2014

2015

2016

70

75

80ja

n-1

5

feb

-15

mar

-15

apr-

15

may

-15

jun

-15

jul-

15

aug-

15

sep

-15

oct

-15

no

v-1

5

dec

-15

jan

-16

feb

-16

mar

-16

apr-

16

may

-16

jun

-16

jul-

16

Renegotiated Loans (Stock)

REVENUES: 12.7% increase (7.8% SSS)

(8.4% measured in Peruvian currency) Positive behavior in consumption reflected in the rise of

revenues in almost all of the business divisions GROSS MARGIN: Slight decrease attributed to a strong advertising of the

use of the Ripley’s card in store purchases, associated with bigger markdowns

EBITDA: registered a 43% increase to $4,253 Driven by SG&A efficiencies

43% INCREASE IN NET PROFIT DRIVEN BY SALES AND IMPROVEMENT OF SG&A

RIPLEY PERU RETAIL BUSINESS



Peru Ripley Bank

Revenue Gross Margin/Sales

90,712

102,228

2Q15 2Q16

26.8% 27.5%

-8.1%

7.8%

SSS

2Q15 2Q16

REVENUES: increased 25.4% YoY

Loan portfolio grew 23.8% 1. Enhanced network productivity and collection processes 2. Aligned relationship between the bank and the store

NET INCOME: 4.8% increase, reaching $2,850 Operational costs increase

1. Increase of net risk cost Significant growth of loan portfolio Deterioration in payment behavior of the Peruvian

banking system NPL’S 1-90 under control

2. Financial expenses increased caused by a rise in the interest rates in Peru

BANK’S NET PROFIT CONTINUES TO GROW DRIVEN BY THE INCREASE IN THE LOAN PORTFOLIO

RIPLEY PERU FINANCIAL BUSINESS



271,204

335,812

2Q15 2Q16

6.5% 4.7%

2,719

2,850

2Q15 2Q16

NET INCOME GREW 31.8% Mall Concepción: Net income increases

36.1% reaching $997 in 2Q16 Inmobiliaria Viña del Mar:

39% growth in net profit Increase in the stake porcentage from

33.33% to 50% Nuevos Desarrollos:

48.5% rise in profits up to $3,587 in 2Q16

Aventura Plaza: Marginally lower profit compared to

2Q15

REAL ESTATE BUSINESS

PROFITABILITY KEEPS INCREASING AS NEW PROJECTS ARE LAUNCHED AND SHOPPING MALLS MATURE



732 1.045

2.416

1.505

997

2.184

3.587

740

Mall Concepción Inmob. Mall Viña delMar S.A.

Nuevos DesarrollosS.A.

Aventura Plaza S.A.

Net Income

2Q15 2Q16







2Q16 HIGHLIGHTS




2Q16 RESULTS




LOOKING FORWARD

LOOKING FORWARD

*ROE of continuous operations Source: Ripley Corp’s Jun-16 Financial Results

MAIN FOCUSROE

2015

2.3%

Increase in square meters

and higher store maturity-5.9%

Migrate clients to

Mastercard18.4%

Continue growth

leveraging on known

clients

18.0%

9.3%

8.7%

6.3%*

MAIN SOURCE OF GROWTH & PROFITABILITY

Increase in margins

through strategic

Plan 3D focused on

brands and new

service model

Strengthening

eCommerce

channelRET

AIL - Fashion & Brands

- Increase Profitability

Gradual

increase in

leverage

Develop current accounts &

debit cardsBA

NK - Competitive Credit Card

- New Core Banking System

REA

L ES

TATE

- Begin Operation of Projects

Under Development

Greater maturity of existing

shopping malls reflecting

non-accounted fair value

Developing projects and

land banks begin operating

-0.07%

-3.0%

19.20%

18,40%

8,2%

8.5%

** Real Estate Net Income doesn´t include change in accounting policy for investment properties in 3Q15 and 4Q15.

2016



• Modification of accounting policy in investment properties.

• Agreement between the controlling shareholder and Liverpool for a Public Acquisition Offering (OPA).


• Bond issue and distribution of dividends by Ripley Bank Peru.

2Q16 HIGHLIGHTS

• Ripley Corp: EBITDA increases 10,2% and positive effect of discontinued operations, offset by non-recurring charges.

• Ripley Chile: Positive SSS and improving margins in retail; Bank’s net risk costs continue downward trend.


2Q16 RESULTS




LOOKING FORWARD

Presentación de PowerPoints2.pulso.cl/wp-content/uploads/2016/09/2333362.pdfINMOBILIARIA MALL VIÑA...

Documents

Transcript of Presentación de PowerPoints2.pulso.cl/wp-content/uploads/2016/09/2333362.pdfINMOBILIARIA MALL VIÑA...