Ripley Corp3Q2020 Earnings Presentation
DISCLAIMER
This presentation contains projections for the future regarding the expectations of the Company, its business,
results and its administration. It is noted that the statements contained here have been prepared based on
information subject to change and risks and future or nature of the activity of the Company uncertainties. By
virtue of the foregoing, this presentation does not guarantee future results, which may differ from the results
projected here which is not the responsibility of the Company or the administration.
Digital Sales recorder the highest growth in history
3
Retail Segment
+321,4% digital sales,
+446.1% in August
63,4% digital salesNMV from 3Q20 ~50% NMV LTM
10x delivery volumen
strengthening Ship From Store
2x active SKUs+76% new sellers
1.5 million shipments per monthwith one of the shortest lead time in theindustry
we expand distribution network+50 gray stores Chile and Peru+80 withdrawal points in Peru
Physical sales reverse trend with store reopening
4
Sales in recent months surpassed those of previousyears, thanks to the recovery of physical sales andgrowth in digital sales
Consolidated Income Variation (YoY) N° of operative stores1/
Gradual recovery of our physical operations, despitecontinuing with capacity and schedule restrictions
Retail Segment
1/ Monthly average of stores open to public
4%9%
-46%
-80%-71%
-51%
-13%
2%
27%
47%
ene-20 feb-20 mar-20 abr-20 may-20 jun-20 jul-20 ago-20 sept-20 oct-20
75 75 40 5 4 19 40 38 50 65 -
500
1.000
1.500
2.000
2.500
0
10
20
30
40
50
60
70
80
ene-20 feb-20 mar-20 abr-20 may-20 jun-20 jul-20 ago-20 sept-20 oct-20
Tiendas abiertas
Total Tiendas
Venta Física Promedio
jan-20 feb-20 mar-20 apr-20 may-20 jun-20 jul-20 aug-20 sep-20 oct-20jan-20 feb-20 mar-20 apr-20 may-20 jun-20 jul-20 aug-20 sep-20 oct-20
Stores open
Total storesAverage physical sales
Higher preference and digitalization of our clients
5
Banking Segment
3x saving accountsreflection of preference
100% onlinecredit and debit card
79% digital clientsvs 41% in 3Q19
79% digital paymentshigher collection level
Half a million Chek users+500 thousand enrolled users
3x amount of QoQ transactions
+57% redemptions compared to 2019greater loyalty
Sustained recovery of activity and traffic in shopping centers
6
Real Estate Segment
• First mall inaugurated in pandemic in LatAm• Largest mall in the Lambayeque region• +49,000 m2 of GLA• Investment of USD50MM• +4,000 formal jobs created
• Capacity for more than 150 brands• Varied offer: Ripley, Oechsle, H&M, Plaza Vea,
Promart, Calvin Klein, Tommy Hilfiger, Renzo Costa,Aventura Motors, among others
• Successful inauguration, with sales level/m2 50%1/
higher than those registered in Santa Anita andArequipa
• Currently 70% of GLA is in operation
Tenant Sales (YoY) and operating GLA
(MA Santa Anita and MA Arequipa) Inauguration of Mall Aventura Chiclayo
1/Mall Aventura Chiclayo was inaugurated on November 4, therefore the sales / m2 indicator corresponds to the 26 days of operation.
97%
108%
57%
18% 20%
29%
49%54%
84%
94%
94%
12%
75%
ene-20 feb-20 mar-20 abr-20 may-20 jun-20 jul-20 ago-20 sept-20 oct-20
Ventas mensual (YoY) % GLA operativo (promedio)
jan-20 feb-20 mar-20 apr-20 may-20 jun-20 jul-20 aug-20 sep-20 oct-20
Monthly Sales (YoY) GLA operating (average)
Highlights 3Q20
7
Retail sales recovered with the reopening of physical stores and registered historical growth of
321.4% in our digital sales. Regarding our only digital platform, today we are the second retailer
most searched in Chile
Merchandise inventories in Chile fell app. $ 9,000 million, 4.7%
Decrease in the net cost of risk in Chile as a result of the higher liquidity in the months
of August and September, resulting in an improvement in the collection and recovery
and therefore a lower net cost of risk
We reached half a million users in Chek, our virtual wallet. On the other hand, our Ripley
Puntos Go loyalty program continues to strengthen, reflecting the engagement of our
customers
Consolidated SG&A expenses fell 12.4%, as a result of the efficiency measures
implemented in all our segments
Expansion of our operations in Peru, with the inauguration of the Aventura Chiclayo Mall and
the store and bank branch in that mall
3Q20 Ripley Corp
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CONSOLIDATED RIPLEY CORP Quarter Accumulated
(amounts in MMCLP) 3Q20 3Q19 Var(%) 9M20 9M19 Var(%)
Revenues from ordinary activities 377,151 402,036 -6.2% 945,435 1,236,622 -23.5%
Gross Profit 101,703 141,526 -28.1% 276,717 445,757 -37.9%
SG&A expenses (118,601) (135,403) -12.4% (347,484) (406,253) -14.5%
EBIT (16,898) 6,124 NA (70,767) 39,504 NA
Non-operating income (13,941) 63,036 NA (37,235) 56,241 NA
Income/los before taxes (30,840) 69,160 NA (108,002) 95,745 NA
Net Income (24,518) 46,990 NA (81,158) 68,850 NA
EBITDA 9,592 35,385 -72.9% 13,631 126,007 -89.2%
3Q20 Retail Results
Digital channel registered historical growth of 321%
9Amounts in MMCLP
C h i l e
• Revenues increased 7.2% compared to 3Q19, positively
impacted by the 10% AFP withdraw and cyber effect in
September
• Gross margin was 15.9%, impacted in 500 bps due to the cost
of shipment
• SG&A drop by 12.7%, due to efficiencies implemented,
mainly in renting expenses
• Operating Income better than 2Q20 by $ 6,169 million
P e r u
• Revenues fall 1.4% in CLP (-5.6% in PEN)
• Gross margin was 17.0%, well above 2Q20, impacted in 200
bps due to the cost of shipment
• Operating Income better than 2Q20 by $ 5,775 million
• Higher selling costs associated withshipments
• Change in the channel and sales mix with
greater participation in the hard goods category
REVENUES
EBIT
71.955 46.624
3Q20
+4.0%
275,438
365,537
233,019
106,295
286,479
3T19 4T19 1T20 2T20 3T20
8,6684,771
15,944
39,377
26,898
2Q201Q204Q193Q19
+169.5%
+210.3%+12mil
3Q19 4Q19 1Q20 2Q20 3Q20
3Q20 Banking Results
Slowdown in gross portfolio decline
C h i l e
• Portfolio falls 24.4% compared to 3Q19
• Total revenues fell 31.2% due to a drop in loans and an
adjustment in the accrual rate
• Operational costs decreased by 55.0%, due to lower cost
for associated net cos of risk due to the fall in NPLs
• Gross profit decreased 13.6% compared to 3Q19,
reaching 41,190 million
P e r u
• Portfolio falls 12.8% in PEN (-8.9% in CLP)
• Decrease in total income of 26.5% PEN, impacted by a fall
in the portfolio and a lower accrual rate on rescheduled
loans (relief measures)
• Operational costs increased 19.3% in PEN (24.4% in CLP),
mainly due to voluntary provisions created during the
quarter, associated with the effects of the pandemic
(MPEN 23 million)
• Gross profit reached $ 11,075 million, a drop of 54.4%
10Amounts in MMCLP
REVENUES
NET INCOME
-28.6%
123,203 121,615 121,625
102,180
87,932
3T19 4T19 1T20 2T20 3T20
11,508
2,153
7,927
8,909
9,620
3T19 4T19 1T20 2T20 3T20
-13.9%
3Q19 4Q19 1Q20 2Q20 3Q20
3Q19 4Q19 1Q20 2Q20 3Q20
Banking Segment: high level of liquidity and capital adequacy
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• Comfortable liquidity (LCR)and solvency indicators,well above the regulatory limit and the average ofthe banking system for both of them
• Core deposits (made by individuals) increased inboth countries, reaching 33.4% in Chile and 52.4% inPeru, measured over the loan portfolio
Leverage indicators do not consider accounting changes from the adoption of IFRS16
Basel Index Chile Basel Index Peru
Ripley Corp Banking
(amounts in MMCLP) sept-20 dec-19 sept-19
Cash 522,647 266,238 213,160
Financial Debt 1,224,993 1,313,655 1,225,746
Net Financial Debt 702,347 1,047,416 1,012,586
Equity 280,346 302,980 296,177
Assets 1,590,988 1,699,133 1,594,833
NFD/Assets 0.44x 0.62x 0.63x
NFD/Equity 2.51x 3.46x 3.42x
15.79 15.93
19.68
11,60
12,60
13,60
14,60
15,60
12,50
14,50
16,50
18,50
20,50
sept-19 dec-19 sept-20
Banco Ripley CL Banking Industry CL
16.5516.06
16.44
sept-19 dec-19 sept-20
Banco Ripley PE Banking Industry PE
3Q20 Real Estate Results
(1) Amounts proportional to the participation that Ripley has in each company, which incorporates the valuations of investment properties at fair value. Nuevos Desarrollos S.A. keeps its Investment Properties valued at cost, so Ripley makes the adjustments so that said valuation adjusts to Ripley's accounting policy and as of the date reclassified as assets available for sale 2) GLA proportional to the participation that Ripley has in each company.(3) Includes profit from sale of Mall de Concepcion
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MALL AVENTURA REVENUES MALL AVENTURA EBITDA
3Q20 3Q19
Ownership CountryInvestment(MMCLP) (1)
Net Income GLA (sqm)(2) MallsNet
IncomeGLA
(sqm)(1) Malls
Leased properties 100% Chile 6,825 -3,125 50,783(3)
Inm. Mall Viña del Mar S.A. 50% Chile 92,092 -944 95,250 3 2,452 86,081 3
Nuevos Desarrollos S.A. 22,5% Chile 178,822 -665 107,996 8 1,639 106,847 8
Mall Aventura S.A. 100% Peru 342,354 -1,263 157,218 2 948 143,671 2
Total 620,093 -5,997 360,464 13 55,822 336,599 13
-46.8% -60.1%
4,834
6,338
5,384
3,1372,574
3T19 4T19 1T20 2T20 3T20
-18.0%3,614
4,0223,678
1,7901,442
3T19 4T19 1T20 2T20 3T20
-19.5%
3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20
Non-Banking Segment: liquidity and leverage
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• Higher liquidity reaching level of $156,039 millions(+53% the level shown in September 2019)
• Inventory adjustments and purchase level allowed toreduce inventory in Chile by app $ 9,000 million andinventory days by 24 compared to 3Q19, reaching 106days
Debt Maturity Profile Non – Banking Segment (MMCLP)
Ripley Corp Non-Banking Segment
(amounts in MMCLP) sept-20 dec-19 sept-19
Cash 156,039 128,260 101,780
Financial Debt 499,111 347,937 354,558
Net Financial Debt 343,071 219,677 252,778
Equity 723,697 814,422 767,821
Assets 1,624,426 1,560,724 1,469,138
NFD/Assets 0.21x 0.14x 0.17x
NFD/Equity 0.47x 0.27x 0.33x
43,455
123,604
9,319 8,770 7,612
56,42639,859
2,936
1,479
88,331
2,610 2,610
2,610
127,880
46,392
125,083
97,649
11,38010,222
59,036
167,739
1-3 months 3-12 months 1-2 years 2-3 years 3-4 years 4-5 years +5 years
Banking Bonds
RIPLEY CORP
RESULTADOS 2T2020