Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Investor Presentation (November 2015)
31 slides from Parque Arauco's investor presentation, November 2015
Slide 1: Investor Presentation November 2015
INVESTOR PRESENTATION N O V E M B E R 2015
Slide 2: Disclaimer
DISCLAIMER THIS DOCUMENT HAS BEEN PREPARED BY PARQUE ARAUCO FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION ABOUT THE COMPANY. The Company assumes no responsibility for, or makes any representation or warranty, express or implied, with respect to, the accuracy, adequacy or completeness of the infor
Slide 3: Introduction to Parque Arauco
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 4: Parque Arauco at a Glance
INTRODUCTION PARQUE ARAUCO AT A GLANCE KEY FIGURES OPERATIONAL METRICS BY COUNTRY Parque Arauco is one of the main shopping center developers TOTAL GLA 1 TOTAL REVENUES 2 and operators in Chile, Peru, and Colombia. Indicator / Country CHILE PERU COLOMBIA 8.8% 29.8% 6.8% Total GLA (m2)1 408,000 334,5
Slide 5: Successful Growth Story
INTRODUCTION SUCCESSFUL GROWTH STORY GLA M 2 1982 Parque Arauco Kennedy opens as first shopping center in Chile 1995 Parque Arauco S.A. IPO 2006 Parque Arauco expands into Peru with the purchase of a 45% stake in MegaPlaza 2.0x Norte in Lima 2009 Opening of Parque Arauco´s first neighborhood center,
Slide 6: Revenue Type and Contract Duration
INTRODUCTION REVENUE TYPE AND CONTRACT DURATION FIXED VS VARIABLE RENTAL REVENUES 1 CONTRACT LENGTH (BASED ON % OF GLA) 1 MOST OF OUR REVENUES ARE PROTECTED AGAINST INFLATION 15% Variable Revenues 60% 100% 5% 5% 85% 30% Fixed Revenues ‹2 years 2-3 years 3-4 years ›4 years Total OUR RENTAL REVENUES A
Slide 7: Our Operations
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 8: Parque Arauco Has a High Quality Portfolio
O U R O P E R AT I O N S PARQUE ARAUCO HAS A HIGH QUALITY PORTFOLIO PARQUE ARAUCO KENNEDY - CHILE ARAUCO MAIPÚ - CHILE LARCOMAR - PERU LO C AT E D I N T H E H E A R T O F O N E O F T H E M A I N LO C AT E D I N T H E H I G H E S T G R O W I N G M I D D L E O N LY M A L L I N L I M A W I T H O C E A
Slide 9: Chile: Regional Shopping Centers, Outlet Malls and Strip Centers
O U R O P E R AT I O N S PARQUE ARAUCO HAS 6 REGIONAL SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIP CENTERS IN CHILE AND THE AVERAGE AGE OF THE PORTFOLIO IS 16 YEARS Buenaventura Owned Occupancy Year of GLA (m2) % Ownership Outlet GLA (m2) Incorporation Quilicura Kennedy Parque Arauco Kennedy 115,00
Slide 10: Peru: Regional and Neighborhood Shopping Centers
O U R O P E R AT I O N S IN PERU, THE COMPANY HAS 6 REGIONAL AND 6 NEIGHBORHOOD SHOPPING CENTERS, 1 OUTLET MALL AND 2 STRIP CENTER; THE AVERAGE AGE OF THE PORTFOLIO IS 5 YEARS S Owned Occupancy Year of GLA (m2) %Ownership1 GLA (m2) Incorporation MegaPlaza Norte 110,500 50% 55,250 93.7% 2006 MegaPlaz
Slide 11: Two Regional Shopping Malls in Colombia
O U R O P E R AT I O N S PARQUE ARAUCO HAS TWO REGIONAL SHOPPING MALLS IN COLOMBIA AND THE AVERAGE AGE OF THE PORTFOLIO IS 3 YEARS Owned Occupancy Year of GLA (m2) % Ownership1 GLA (m2) Incorporation Parque Arboleda 33,000 30% 9,999 89.5% 2010 Parque Caracolí 38,500 55% 21,175 90.4% 2013 Bucaramanga
Slide 12: Investment Highlights
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS 6. 1. Strong results Important growth in a challenging opportunities macroeconomic environment Conservative 5. 2. Country, debt structure format and and oustanding socio-economic financial diversification performance Strong Solid management commercial team
Slide 14: The Andean Region Has Been Growing at a Slower, Yet Stable Pace
INVESTMENT HIGHLIGHTS THE ANDEAN REGION HAS BEEN GROWING AT A SLOWER, YET STABLE PACE PERU AND COLOMBIA ARE EXPEC TED TO GROW AT RELATIVELY HIGH RATES COMPARED TO THE REST OF LATIN AMERICA …WITH A STILL RELATIVELY LOW GDP PER CAPITA 2015E (US$) Brazil -2,8 2015e (%) U.S.A. 56,421 GDP per -0,9 2016e
Slide 15: Results Positive in All Three Countries, Third Quarter
INVESTMENT HIGHLIGHTS IN SPITE OF A WEAKER MACROECONOMIC ENVIRONMENT, RESULTS HAVE BEEN POSITIVE IN ALL THREE COUNTRIES THIRD QUARTER RESULTS TENANT SALES (1) REVENUES (1) EBITDA (1) (2) +13.4% +10.4% +12.2% 217,565 21,827 19,485 191,884 19,769 17,374 CHILE 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 +22.1% +30.3
Slide 16: Diversification by Country, Format and Socio-Economic Level
INVESTMENT HIGHLIGHTS PARQUE ARAUCO DIVERSIFIES ITS MARKET RISKS AT A COUNTRY, FORMAT, AND SOCIO-ECONOMIC LEVEL COUNTRY LEVEL DIVERSIFICATION FORMAT LEVEL DIVERSIFICATION (% OF TOTAL REVENUES) (% OF TOTAL REVENUES) Others 29.8% 6.8% Neighborhood 7.3% PERÚ COLOMBIA 4.3% 63.4% 88.4% CHILE CHILE Region
Slide 17: Market Leader in the Outlet Format
INVESTMENT HIGHLIGHTS WITH A 45% MARKET SHARE IN CHILE, PARQUE ARAUCO IS THE MARKET LEADER IN THE OUTLET FORMAT IN THE ANDEAN REGION OUTLETS CURRENTLY IN OUR PORTFOLIO OUTLETS UNDER CONSTRUCTION OUTLET LURIN, PERU ARAUCO PREMIUM OUTLET BUENAVENTURA, CHILE ARAUCO PREMIUM OUTLET CONCEPCIÓN, CHILE OUTL
Slide 18: History of Strong Commercial Relationships
INVESTMENT HIGHLIGHTS PARQUE ARAUCO HAS A HISTORY OF STRONG COMMERCIAL RELATIONSHIPS CHILE PERU COLOMBIA “Tiffany is always searching for opportunities to create memorable moments for our clients. Parque Arauco, with an open air area, beautiful views of the Chilean mountains and a dedication to cust
Slide 19: Supporting the Globalization of Brands Entering the Andean Region
INVESTMENT HIGHLIGHTS PARQUE ARAUCO IS SUPPORTING THE GLOBALIZATION OF SEVERAL BRANDS ENTERING THE ANDEAN REGION NEW TENANTS IN PARQUE ARAUCO KENNEDY IN THE LAST 5 YEARS: International Local Name GLA Name GLA 74% of new GLA leased in Parque FOREVER 21 1,639 ETIQUETA NEGRA 209 Arauco Kennedy over the
Slide 20: Experienced Management Team, Corporate Governance and Sustainability
INVESTMENT HIGHLIGHTS PARQUE ARAUCO HAS AN EXPERIENCED MANAGEMENT TEAM AS WELL AS SOLID CORPORATE GOVERNANCE AND SUSTAINABILITY POLICIES PARQUE ARAUCO´S ADMINISTRATION RECENT MANAGEMENT AWARDS EXECUTIVE VICE PRESIDENT Juan Antonio Álvarez HUMAN AUDIT AND ADM. & FINANCE GENERAL RESOURCES CONTROL MANA
Slide 21: Financing Policy of 50% Debt and 50% Equity
INVESTMENT HIGHLIGHTS PARQUE ARAUCO´S POLICY IS TO FINANCE PROJECTS WITH 50% DEBT AND 50% EQUITY, AND IS COMFORTABLY WITHIN ALL ITS COVENANTS LIABILITIES/EQUITY NET FINANCIAL DEBT/EQUITY Covenant Covenant 1.50 x 1.40 x 1.09 x 1.05 x 0.99x 0.87 x 0.89 x 0.73 x 0.78 x 0.81 x 0.64 x 0.59 x 0.61 x 0.41
Slide 22: Lifted Mortgages, Improved Debt Rating, Longer Liability Duration
INVESTMENT HIGHLIGHTS DURING THE LAST TWELVE MONTHS, THE COMPANY HAS LIFTED MORTAGES IN CHILE, IMPROVED ITS DEBT RATING, AND CONSIDERABLY INCREASED THE DURATION OF ITS LIABILITIES LIFTING OF MORTAGES IN CHILE (1) IMPROVEMENT IN LOCAL DEBT RATING 2014: 2015: MORTGAGES OVER PARQUE MORTGAGES OVER PARQU
Slide 23: Low Shopping Center Penetration vs. Developed Countries
INVESTMENT HIGHLIGHTS PARQUE ARAUCO PARTICIPATES IN MARKETS WITH A RELATIVELY LOW PENETRATION IN THE SHOPPING CENTER SECTOR VS. DEVELOPED COUNTRIES GLA Canada % of U.S.A. 2,191 64% per 1,000 retail sales inhabitants in shopping Canada U.S.A. 54% centers 1,440 Chile 202 Chile 25% Mexico 134 Peru 24%
Slide 24: Leading Position in Chile and Peru, Growing in Colombia
INVESTMENT HIGHLIGHTS PARQUE ARAUCO HAS A LEADING POSITION IN CHILE AND PERU, AND IS GROWING ITS PARTICIPATION IN THE FRAGMENTED COLOMBIAN MARKET TOTAL GLA TOTAL GLA MARKET PARQUE ARAUCO RANKING (THOUSANDS) SHARE (THOUSANDS) CHILE 3,500 M 2 408 M 2 12% #3 PERU 2,100 M 2 334.5 M 2 16% #2 COLOMBIA 4,2
Slide 25: Growth from Greenfield Projects and M&A
INVESTMENT HIGHLIGHTS PARQUE ARAUCO´S GROWTH HAS COME FROM GREENFIELD PROJECTS AND M&A Chile Peru Colombia TOTAL GLA NEW NEW NEW NEW NEW NEW NEW NEW NEW TOTAL 2006 and GLA GLA GLA GLA GLA GLA GLA GLA GLA GLA before 2007 2008 2009 2010 2011 2012 2013 2014 9M15 3Q15 CHILE GREENFIELDS 132,198 28,998 10
Slide 26: Optionality in Expansions of Existing Shopping Centers
INVESTMENT HIGHLIGHTS ONE IMPORTANT AND SOMETIMES FORGOTTEN FEATURE OF OUR BUSINESS IS THE OPTIONALITY RELATED TO EXPANSIONS OF EXISTING SHOPPING CENTERS EXPANSIONS COMPLETED IN THE LAST 5 YEARS HAVE ADDED 78,844 M 2 EXPANSIONS IN PROGRESS LUXURY DISTRICT PARQUE ARAUCO KENNEDY 1,000 m2 MEGAPLAZA NOR
Slide 27: Future Developments
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 28: Future Developments 2015 and Onwards
FUTURE DEVELOPMENTS 2015 AND ONWARDS Parque Arauco has announced projects that will add 308,000 m2 of GLA over the next few years and will require an estimated investment of US$ 853 million. The company also has a valuable land bank which will serve as the base for future development. Estimated Tota
Slide 29: Parque La Colina Progressing On-Time and Within Budget
F U T U R E D E V E LO P M E N T S PARQUE LA COLINA IS PROGRESSING ON-TIME AND WITHIN BUDGET AND SHOULD BE INAUGURATED DURING THE FIRST HALF OF 2017 CONSTRUC TION COMPANY: CONSTRUC TION OVERSIGHT: Construction state: Currently building fourth underground level and third level. Commercialization stat
Slide 30: Landbank
F U T U R E D E V E LO P M E N T S LANDBANK Parque Arauco has a landbank valued at US$183 Million (at acquisition cost), which will be used to support future growth and to develop shopping centers, outlet malls and strip centers in Chile, Peru and Colombia. Total Cost LAND M2 % Ownership (MMUS$) Qui
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