January 2018 Over 60 years of history PHASE IV PHASE II PHASE I - PowerPoint PPT Presentation

Ripley Corp January 2018

Over 60 years of history PHASE IV PHASE II PHASE I PHASE III PROFITABILITY AND REPOSITIONING BEGINNING SCALE SELECTIVE GROWTH Opening of Acquisition of Credit Opening of First bond Consolidation Ripley 22.5% of business Ripley Bank places by of Mall Parque Nuevos beginning Chile Ripley Bank Aventura Arauco Desarrollos Chile S.A. 1993 2009 2016 1976 2002 2014 1956 1997 2013 2017 1985 2005 2015 Opening of three stores: Opening Closing of First First First store San of Ripley Ripley store in department IPO of in Peru Fernando, Los Colombia Colombia Santiago store Ripley Corp Dominicos y Coquimbo 2

Ripley overview  29 stores Peru Retail  192,884 m 2 34%  EBITDA: MMM$ 6 Sep-17 LTM Revenues  Revenues: MMM$ 1,207 Loan Portfolio: MMM$ 353 MMM$1,662 (1) Financail  74 stores Retail  478 (Th) cards w/ debt Chile  479,575 m 2  EBIT: MMM$ 20 66%  EBITDA: MMM$ 39 Referential EBITDA (2)  2 malls Real Estate  MMM$ 175 investment 11%  Revenues: MMM$ 436 19%  EBITDA: MMM$ 11 9%  83 branch offices Financial  Loan Portfolio: MMM$ 1,127  1,737 (Th) cards w/ debt  45 stores  EBIT: MMM$ 68 Retail  286,691 m 2 61%  EBITDA: MMM$ 33 Assets Finanancial  Loan Portfolio: MMM$ 774  Revenues: MMM$ 23 Real Estate  1,259 (Th) cards w/ debt  12 malls 20%  EBIT: MMM$ 47 26%  MMM$ 480 investment  EBITDA (3) : MMM$ 40  10 malls Real Estate  MMM$ 305 investment  EBITDA (3) : MMM$ 29 54% Note: Data by S eptember 2017 and amounts in CLP. Revenues, EBITDA and EBIT LTM. Does not consider Corp, Chile nor Peru’s central offices (1) Does not include Corp’s central offices (2) Referential EBITDA: 9% consolidated real estate investment and 11% non-consolidated real estate investment in joint ventures 3 (3) Referential EBITDA proportional to Ripley’s stake, considers real estate investments in consolidated and non -consolidated investments

Retail Business 1 2 Financial Business 3 Real Estate Business 4 LTM sep-17 Results 5 Looking forward

1 RETAIL BUSINESS Wide presence in Chile and Peru, with leadership in both countries Market share (Sep 2017) (1) I Región(1) II Región (2) Chile 80% of our selling III Región (1) Tricot surface is located in main La Polar 3% Ripley Hites 7% shopping centers in 18% 5% IV Región (2) major cities of Chile and AD Retail 8% V Región (6) Peru VI Región (2) Región Metropolitana (17) Paris + Johnsons Falabella 25% VII Región (2) 34% VIII Región (6) Cajamarca (1) IX Región (2) Piura (2) XIV Región (1) Peru Paris X Región (2) 7% Pucallpa (1) Chiclayo (1) Ripley 38% Huancayo (1) Trujillo (1) XII Región (1) Chimbote (1) Juliaca (1) Callao (1) Falabella Lima (16) 55% Ica (1) Arequipa (2) 5 (1) Market share based on retail revenues from department stores with public information

1 RETAIL BUSINESS Large logistic infrastructure in place Ripley Chile’s distribution center has a surface of 67,000 m2 and dispatches 50 million units per year. Meanwhile, Ripley Peru’s distribution center has a surface of 45,000 m2 and dispatches 32 million units per year. 6

1 RETAIL STRATEGIC PLAN Focus in increasing investment profitability with greater emphasis in fashion & clothing • Focus on managing private labels, which have a larger contribution • Improving electro department by optimizing assigned surface and online sales Product • Alliances with large international brands Achieve margins increase and differentiation from other retailers • Increase profitability of surfaces dedicated to brands • First level logistic process, able to satisfy both the traditional channel and e-commerce • Optimization of life cycle, which allows to decrease discount sales and optimize inventories Management • Speed up replenishment and availability of products in stores, avoiding stock-outs Continuous improvement of the information and processes to benefit commercial management • Internet and omnichannel development • New attention model, in line with international retail and reducing HR expenses • Store Offer entertaining, simple and captivating stores, focused on product • Standardize products exhibition norms and visual elements Offer simple and entertaining channels, controlling HR expenses 7

1 RETAIL BUSINESS Retail indicators Selling surface Chile Sales evolution (MMCLP) (1) 286.691 276.080 276.080 272.307 269.446 45 43 43 42 42 407.594 405.313 394.712 400.557 350.748 799.180 763.647 743.576 744.346 692.969 2013 2014 2015 2016 2017 2013 2014 2015 2016 LTM sep-17 Selling surface Peru Same Stores Sales (SSS) 6% 192.884 192.884 4% 177.799 173.189 156.842 29 29 27 2% 26 22 0% 2014 2015 2016 LTM-sep 17 -2% 2013 2014 2015 2016 2017 -4% -6% Selling surface (m2) N° of stores Chile Peru 8 (1) Does not include central offices

1 RIPLEY’S e -COMMERCE BUSINESS  Increasing omnichannel and digitalization focus Awards  Strategic Plan focused on platform development and internet sales  On 4 th April Mercado Ripley.com was launched, allowing third parties to sale their products at Ripley’s website  Close to 80 million visits during 2016 to Ripley’s internet homepage in Chile  Winner of the 2015 and 2016 2017 2016 2015 2016 in Chile and 2016 and 2017 in Peru e-Commerce in Chile 1990 – 2017 (USD mm) e-Commerce sales evolution 3.689 75% 2.960 2.350 40% 40% 40% 1.958 1.592 1.275 1.066 353 447 514 730 25% 23% 15 24 36 48 72 94 203 294 2014 2015 2016 1990 2001 2003 2005 2007 2009 2011 2013 2015 2017 Chile Peru 9 Source: Ripley Corp, estimated from the Santiagos’s Chambers of Commerce. CAC: Compound annual growth

Retail Business 1 Financial Business 2 3 Real Estate Business 4 LTM sep-17 Results 5 Looking forward

2 FINANCIAL BUSINESS OUR PROMISE A SIMPLE BANK Close to its customers TRANSPARENCY QUICKNESS ACCESABILITY BENEFITS OUR ATTRIBUTES In the sale In services Omnichannel From Ripley world With the charges In problem resolution Monday through Sunday Ripley reward points Where the client wants to In the communication No waiting time be Valued alliances Client knowledge HOW WE'LL DO IT Digital innovation in products, channels and services Integration with retail Lean processes Culture and a capable team 11

2 FINANCIAL BUSINESS Banking industry leader in cards Credit card market share (1)  49 branch offices Others 10%  #3 in the banking industry of loans per branch BCI 8% offices (2) CAR 26%  #1 in credit card market share Banco Estado Chile 9%  #4 in the banking industry of credit card loans  4.0% ROA, the highest in the banking system Banco de Chile Cencosud 13% +Scotiabank 19% (4) Santander 15% Credit card market share (1)  34 branch offices Others  #3 in the banking industry of loans per branch 15% Banco Falabella 22% offices (3) Scotiabank  7% #2 in credit card market share Peru Banco Cencosud  Estacion R: new format of branch offices that offer 9% Ripley financial products and electronics and home 20% appliances financing BCP Interbank 13% 14% Source: SBIF, SBS, last available data (november-17). (1) As a percentage of the total credit cards in the industry (2) Considers banks with over CLP 100,000 million in consumer loans. Measured as total consumer loans / branch offices 12 (3) Considers banks with over pen 480 million in consumer loans. Measured as total consumer loans / branch offices (4) Considers only “CAT administradora de tarjetas S.A”., owned 51% by Scotiabank and 49% by Cencosud

2 FINANCIAL BUSINESS Bank in Chile Bank in Peru ROE ROE 19,2% 19,2% 18,4% 18,2% 17,9% 17,7% 16,7% 16,1% Good profitability indicators 2015 2016 nov-16 nov-17 2015 2016 nov-16 nov-17 Basel Index Basel Index 15,9% 15,1% 21,8% 14,7% 21,3% 20,0% 13,6% 19,0% Solid financial position and good levels of Basel Index 2015 2016 oct-16 oct-17 2015 2016 oct-16 oct-17 Loan portfolio (MM$) Loan Portfolio (MMPEN) 808.482 778.659 746.319 744.633 1.800 1.776 1.695 1.541 Growing loan portfolio YoY 2015 2016 nov-16 nov-17 2015 2016 nov-16 nov-17 13 Sources: Ripley Corp, SBIF and SBS

2 FINANCIAL BUSINESS Ripley Chile NPL’s 1-90 Days NPL’s 90 + Days 22% 6,0% 5,5% 20% 5,0% 18% 4,5% 4,0% 16% 3,5% 14% 3,0%  Healthy evolution of early NPL’s (less than 90 Net Risk Provision Expense(*) days) and improving when compared to (Does not consider non-IFRS provisions: contingent and additional provisions) previous years and recent months 1,6%  Over 90 days NPL’s show a slight rise, explained 1,1% by a worsening of the employment quality as 0,6% well as a response to a less dynamic economy 0,1%  Monthly net risk cost, has shown a slight increase in the recent months, yet in line with expected levels 2014 2015 2016 2016 Old provisions model 2017 (1) In October 2016, Ripley Bank Chile changed its risk provisions aligning its 14 model to the SBIF definitions