Ripley Corp January 2019 Over 60 Years of History Present in - PowerPoint PPT Presentation

Ripley Corp January 2019

Over 60 Years of History • Present in Chile and Peru • Listed in Santiago Stock Exchange and a member of the 30 Largest Chilean Companies included in S&P Index PHASE II PHASE I PHASE III PHASE IV REPOSITIONING BEGINNING SCALE PROFITABILITY AND SELECTIVE GROWTH Beginning Opening of Opening of Acquisition of First bond Consolidation of of credit Ripley Parque Ripley Bank 22.5% of Nuevos placed by Ripley Mall Aventura in business Arauco Chile Desarrollos S.A. Bank Chile Peru 1976 2009 2014 2002 2016 1993 2017- 1997 2005 2013 2015 1956 1985 2018 First First First IPO of Opening of Closing Organic store in department store in Ripley Ripley Ripley growth Santiago store Peru Corp Colombia Colombia

Ripley by Segments Retail Banking Real Estate Ripley Corp  Revenues: MMM$457  Revenues: MMM$1,701  Revenues: MMM$1,225  Revenues: MMM$26 • MMUSD 725 • MMUSD 2,697 • MMUSD 1,944 • MMUSD 41  EBIT: MMM$70  EBITDA: MMM$170  EBITDA: MMM$37  Invest. properties: MMM$511 • MMUSD 111 • MMUSD 269 • MMUSD 59 • MMUSD 810  Loan Portfolio: MMM$1,205  Market Cap: MMM$1,123  76 stores  EBITDA (1) : MMM$ 47 • MMUSD 1,911  MMUSD 1,781  484,803 m 2 • MMUSD 75  82 branches  Employees: 24,122  Online channel: + 40% YoY  13 malls  1,742 (Th) cards w/debt  GLA: 329,775 m 2 owned Referential EBITDA (2) Assets Peru 33% 18% 20% 22% 27% Sep-18 LTM Revenues MMUSD 2,697 Chile 67% 53% 60% Notes: Ripley’s functional currency is Chilean pesos. However for referential purposes , all amounts throughout the presentation are represented in USD at a fixed rate of 630.43 CLP/USD Data LTM as of September 2018 . Segment details do not consider central offices Corp, Chile nor Peru. (1) Referential EBITDA considers the proportional EBITDA from non-consolidating investments properties (13%).

Ripley by Country Ripley Chile Ripley Peru  29 stores  47 stores Retail Retail  192,884 m 2  291,919 m 2  EBITDA: MMM$15  EBITDA: MMM$22 • MMUSD 24 • MMUSD 35  Loan Portfolio: MMM$841  Loan Portfolio: MMM$364 • MMUSD 1,334 • MMUSD 577 Banking Banking  1,273 (Th) cards w/debt  469 (Th) cards w/debt  EBIT: MMM$49  EBIT: MMM$21 • MMUSD 78 • MMUSD 34  2 malls fully owned  11 malls (1 fully owned) Real Estate Real Estate  Investment properties: MMM$199  Investment properties: MMM$312  MMUSD 316 • MMUSD 495  EBITDA: MMM$14  EBITDA (1) : MMM$33 • MMUSD 22 • MMUSD 53 Notes: Data LTM as of September 2018. Segment details do not consider central offices Corp, Chile nor Peru. (1) Referential EBITDA considers the proportional EBITDA from non-consolidating investments properties (13%).

Diversified Net Assets Structure Evolution Net Assets Retail + Central offices 22% 21% 21% 21% 21% 24% 54% 55% 59% 52% 63% Banking 61% 25% 24% 23% Real Estate 20% 17% 17% 2013 2014 2015 2016 2017 Sep-18 Positive Operational Performance Evolution EBITDA + Cash flows from/to JV shopping malls 11% 12% 11% 7% 15% 21% 62% Retail + Central offices 30% 78% 73% 73% 81% 81% Banking 77% 27% 15% 16% 15% 4% -1% -8% Real Estate + JV cash flows 2013 2014 2015 2016 2017 LTM sep-17 LTM sep-18 Note: Amounts do not include operation in Colombia. EBITDA: EBIT + Depreciation + amortization + interest expenses.

Key Considerations 1 Over 60 years of experience in the retail industry in Chile and 20 years of experience in Peru, with vast knowledge of our clients and their purchase behavior 2 Continuous omnichannel development through strengthening the digitalization and e-Commerce channels in the retail and banking businesses 3 Profitable and low leveraged banking businesses, strongly integrated with the retail business. Banks are regulated by the SBIF (1) in Chile and SBS (1) in Peru 4 Stores in the best locations, along with modern distribution centers, allow the development of the retail business 5 Real Estate business with investments in various shopping centers, in the best locations and with projects at different levels of maturity 6 Solid financial stance with a healthy composition and controlled leverage indicators (1) SBIF: Superintendence of banking and financial institutions; SBS: Superintendence of banking, insurance and pension funds.

Index Retail Business 1 2 Banking Business 3 Real Estate Business

1 Retail Business Wide presence in Chile and Peru, with leadership in both countries Market-share LTM sep-17 (1) Market-share LTM sep-18 (1) Tricot Tricot La Polar 2,8% Ripley La Polar 3,0% 7,2% 18,0% Ripley 7,0% Hites Hites 18,5% 4,9% 4,8% Chile AD Retail AD Retail 8,4% 7,5% Cencosud Falabella Cencosud Falabella 24,4% 34,8% 24,5% 34,3% Market-share LTM sep-17 (2) Market-share LTM sep-18 (2) Cencosud Cencosud 7,0% 8,2% Ripley Ripley 37,0% 38,0% Peru Falabella Falabella 54,9% 54,8% 80% of our selling surface is located in main shopping centers in major cities (1) Market-share calculated based on LTM sep-18 revenues, from companies with public information. (2) Does not consider Oechsle and other minor retailers since information is not publicly available.

1 Retail Business Selling surface Chile Sales evolution (MMUSD) 1.944 1.927 1.854 1.816 1.806 291.919 287.753 1.656 276.080 276.080 272.307 269.446 47 46 43 43 42 42 1.299 1.282 1.211 1.181 1.179 Chile 1.099 626 635 643 646 645 Peru 556 2013 2014 2015 2016 2017 Sep-18 2013 2014 2015 2016 2017 LTM sep-18 Selling surface (m2) N° of stores Selling surface Peru SSS Evolution 6% 192.884 192.884 192.884 177.799 173.189 156.842 4% 29 29 29 27 26 22 2% 0% 2014 2015 2016 2017 9M18 -2% 2013 2014 2015 2016 2017 Sep-18 -4% Selling surface (m2) N° of stores -6% Chile Peru Controlled growth of our selling surface

1 Retail Business Large logistic infrastructure in place Ripley Chile’s distribution center has a surface of 67,000 m2. Meanwhile, Ripley Peru’s distribution center has a surface of 45,000 m2 Both distribution centers have growth potential for the online and physical channels Stores in the best locations, along with self-sufficient distribution centers, allow the development of the retail business

1 e-Commerce Business and Omnichannel Experience Awards  Greater emphasis in omnichannel experience and digitalization  Recent developments:  Online virtual assistant, Mobile POS, Mobile apps  MercadoRipley.com (Ripley’s Marketplace) allows third parties to sell their products through Ripley’s website  Launched in 2017 in Chile and in 2018 in Peru 2015 2016 2018 2016 2017  Millions of visits to Ripley’s website in Chile and Peru Online sales YoY growth B2C e-Commerce in Chile 1999 – 2017 (MMUSD) CAGR +25% 75% CAGR +36% 4.000 3.074 2.480 42% 40% 40% 40% 2.036 1.592 41% 1.275 1.066 25% 23% 730 514 447 353 294 203 94 48 72 15 24 36 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2014 2015 2016 2017 Chile Peru Source: Ripley Corp, Estimates from Santiago’s Chambers of Commerce. CAGR: compound annual growth rate.

1 Retail Business What we have been working on:  Increase traffic on our online and physical stores  Marketplace  Growing product availability in Ripley.com and enhanced look and feel of the website  Customer delivery focus  Entertaining store  Development of omnichannel and digital experience  Online virtual assistant  Omnichannel new tools  Mobile retail apps / digital store  Emphasis in fashion & private brands  Positioning of Ripley brand beyond retail  Success in high impact social campaigns 1 CAMPAÑA #ElijoS ijoSerTest stigo igo o Women relevance No más Bully lying ing 2 o Chile’s Telethon / social commitments o Anti-bullying

Index Retail Business 1 Banking Business 2 3 Real Estate Business

2 Banking Business Credit cards market-share (1) Others 11% BCI  47 branch offices 8% Ripley  #1 in credit card market-share 27% Banco Estado Chile 10%  #4 in the banking industry of credit card loans Banco de  Cencosud + 3,8% ROA, the highest in the banking industry Chile Scotiabank 13% 17% Santander 14% Credit cards market-share (1) Others Banco Falabella 17% 17%  35 branch offices Banco Cencosud 8%  Peru Banco Ripley #2 in credit card market-share 15% Crediscotia  3,0% ROA, second highest in the banking industry 9% Financiera Oh! BCP 12% 11% Interbank 11% Source: SBIF and SBS, last available data. (1) As a percentage of the total credit cards in the industry.

2 Banking Business Revenues (MMCLP) EBIT (MMUSD) 725 114 111 703 106 106 669 630 99 575 89 496 469 502 81 78 446 73 81 65 435 411 Chile 62 Chile 353 234 34 33 34 223 223 33 Peru Peru 195 26 25 163 143 2013 2014 2015 2016 2017 LTM sep-18 2013 2014 2015 2016 2017 LTM sep-18 Loan Portfolio (MMUSD) Cards w/debt 1.909 1.911 1.844 1.808 1.792 1.767 1.805 1.742 1.670 1.699 1.574 1.332 1.345 1.334 1.288 1.339 1.235 1.270 1.293 1.273 1.184 Chile 1.170 1.189 Chile 1.029 570 564 577 520 504 Peru 516 Peru 500 497 498 469 385 303 2013 2014 2015 2016 2017 Sep-18 2013 2014 2015 2016 2017 Sep-18 Note: Amounts in CLP currency, converted to USD for reference