Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Investor Presentation (January 2015)
32 slides from Parque Arauco's investor presentation, January 2015
Slide 1: Investor Presentation January 2015
INV ESTOR PR ESENTATION JA NUA R Y 2015 |1
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Slide 3: 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 The information contained herein has been prepared to any representation or warranty, express or implied, with assist in
Slide 4: Introduction to Parque Arauco
INTRODUCTION TO PARQUE ARAUCO INVE S T M EN T HIG HLIG HT S O UR OP E R AT IO NS F U T U R E D EV ELO PM ENT S |4
Slide 5: Parque Arauco at a Glance
INTRODUCTION TO PARQUE ARAUCO PARQUE ARAUCO AT A GLANCE PARQUE ARAUCO OPERATIONAL METRICS BY COUNTRY Parque Arauco is the third largest shopping center company in TOTAL GLA 1 REVENUES LTM 2 Chile, with operations in Perú and Colombia. Colombia Perú Colombia Perú Indicator / Country CHILE PERÚ COLOMB
Slide 6: Successful Growth Story
INTRODUCTION TO PARQUE ARAUCO SUCCESSFUL GROWTH STORY REVENUES (US$MM) 2006 First steps of expansion into Perú (45% stake in Megaplaza Norte in Lima) 3.9x 2006 Chilean expansion begins with Mall Center in Curicó 192 2009 First Neighborhood shopping center in Perú 179 (Mega Express Villa, in Chorrill
Slide 7: Our Revenues Are Protected Against Inflation
INTRODUCTION TO PARQUE ARAUCO REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED AND 60% OF OUR CONTRACTS HAVE A DURATION OF MORE PRIMARILY FROM FIXED CONTRACTS THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (OCT 13 - SEPT 14) CONTRACT LENGTH (BASED ON % OF GLA) 1 100 16% Variable Re
Slide 8: Operations Summary
INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 725,800 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m2) 71,500 % Ownership 43.6 % Owned GLA 31,460 Main Partner: • Grupo
Slide 9: Investment Highlights
I NTRO D U C T I O N TO PARQ U E A R AU C O INVESTMENT HIGHLIGHTS OUR OP E R AT IO NS F UTU R E D EV ELO PMENT S |9
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS PARQUE ARAUCO IS THE RIGHT COMPANY IN THE RIGHT INDUSTRY IN THE RIGHT COUNTRIES 6 1 Outstanding Favorable Financial Performance Macroeconomic with a Conservative Outlook and Attractive Debt Structure Industry Dynamics Leading Ambitious Position in the 2 5
Slide 11: Favorable Macroeconomic Outlook and Attractive Industry Dynamics
INVESTMENT HIGHLIGHTS FAVORABLE MACROECONOMIC OUTLOOK AND ATTRACTIVE INDUSTRY DYNAMICS PARQUE ARAUCO IS POSITIONED IN COUNTRIES WITH STRONG MACROECONOMIC PROSPECTS AND UNDERPENETRATED SHOPPING CENTER SECTORS STRONG REAL GDP GROWTH PROJECTIONS… …WITH A STILL RELATIVELY LOW GDP PER CAPITA 2014E (US$)
Slide 12: Leading Position in the Andean Region Commercial Real Estate Industry
INVESTMENT HIGHLIGHTS LEADING POSITION IN THE ANDEAN REGION COMMERCIAL REAL ESTATE INDUSTRY PARQUE ARAUCO HAS A STRONG, LEADING POSITION IN EVERY COUNTRY IN WHICH IT IS PRESENT - IT IS THE 4TH LARGEST PLAYER IN CHILE, THE 3RD LARGEST PLAYER IN PERU AND ONE OF THE MAIN OPERATORS IN COLOMBIA IN TERMS
Slide 13: Differentiated Business Model
INVESTMENT HIGHLIGHTS DIFFERENTIATED BUSINESS MODEL PARQUE ARAUCO HAS A UNIQUE BUSINESS MODEL, BEING THE ONLY PUBLICLY TRADED OPERATOR IN THE ANDEAN REGION WITH AN EXCLUSIVE FOCUS ON REAL ESTATE, AND ALSO HAS A WIDE SCOPE IN TERMS OF GEOGRAPHY, FORMATS AND SOCIOECONOMIC LEVELS Focus on the Andean Re
Slide 14: Strong Commercial Relationships
INVESTMENT HIGHLIGHTS STRONG COMMERCIAL RELATIONSHIPS OVER 30 YEARS OF INDUSTRY EXPERIENCE HAS ENABLED PARQUE ARAUCO TO CREATE SOLID AND LONGSTANDING COMMERCIAL RELATIONSHIPS WITH ITS TENANTS C HIL E P ERÚ COLO MBIA | 14
Slide 15: Ambitious Investment Plan
INVESTMENT HIGHLIGHTS AMBITIOUS INVESTMENT PLAN INVESTMENT TIMELINE (US$MM) OUR INVESTMENT PIPELINE IS 565 COMPLEMENTED BY OUR LANDBANK 187 108 -19 105 180 289 FROM WHICH FUTURE PROJECTS WILL BE DEVELOPED. Peru 79.5 US$MM 289 226.5 US$MM VALUE OF Chile 210 LANDBANK 61 US$MM 65 7 124 47 Colombia 14 5
Slide 16: Diversification of EBITDA
INVESTMENT HIGHLIGHTS DIVERSIFICATION OF EBITDA OUR INVESTMENT IN PERU AND COLOMBIA HAS ENABLED US TO DIVERSIFY EBITDA GENERATION ACROSS THE THREE COUNTRIES. CONSOLIDATED EBITDA GENERATION MMUSD % OF CONTRIBUTION CHILE PERU COLOMBIA 147 6% 23% 80 16% 32 71% 84% 100% 2004 2009 2014* *LTM= Oct 13 - Se
Slide 17: Outstanding Financial Performance
INVESTMENT HIGHLIGHTS OUTSTANDING FINANCIAL PERFORMANCE SOLID FINANCIAL PERFORMANCE AND A CONSERVATIVE DEBT STRUCTURE HAS KEPT FINANCIAL COVENANTS AT COMFORTABLE LEVELS ALLOWING FOR FAVORABLE FINANCING CONDITIONS STEADY REVENUE GROWTH US$MM (1) 192 179 154 158 134 131 121 18% 2009 2010 2011 2012 201
Slide 18: Conservative Debt Structure
INVESTMENT HIGHLIGHTS CONSERVATIVE DEBT STRUCTURE SOLID FINANCIAL PERFORMANCE AND A CONSERVATIVE DEBT STRUCTURE HAS KEPT FINANCIAL COVENANTS AT COMFORTABLE LEVELS ALLOWING FOR FAVORABLE FINANCING CONDITIONS NET FINANCIAL DEBT US$MM 1 FINANCIAL DEBT AMORTIZATION SCHEDULE US$MM 1 267 665 625 611 534 4
Slide 19: Our Operations
INTROD UC T I O N TO PARQ UE A R AU C O INVE S T M EN T HIG HLIG HT S OUR OPERATIONS R E C E N T D E V ELO PMENT S | 19
Slide 20: Chile
CHILE PARQUE ARAUCO BUILT THE FIRST SHOPPING CENTER IN CHILE MORE THAN 30 YEARS AGO AND THE COMPANY CONTINUES TO BE AN INNOVATIVE LEADER IN THE MARKET | 20
Slide 21: Chile » Shopping Centers
OUR OPERATIONS CHILE » SHOPPING CENTERS PARQUE ARAUCO KENNEDY - SANTIAGO ARAUCO MAIPÚ - SANTIAGO ARAUCO ESTACIÓN - SANTIAGO ARAUCO QUILICURA - SANTIAGO BUENAVENTURA OUTLET MALL - SANTIAGO ARAUCO SAN ANTONIO - SAN ANTONIO ARAUCO CHILLÁN - CHILLÁN STRIPCENTERS CHILE MALL OUTLET CONCEPCIÓN - CONCEPCIÓN
Slide 22: Chile » Shopping Centers
OUR OPERATIONS CHILE » SHOPPING CENTERS Owned Occupancy Year of GLA (m2) %Ownership SANTIAGO GLA (m2) Incorporation SANTIAGO Parque Arauco Kennedy 115,000 100% 115,000 97.7% 1982 Quilicura Buenaventura Outlet Arauco Maipú 75,000 100% 75,000 96.8% 1993 Kennedy Arauco Estación 69,000 83% 57,270 97.8%
Slide 23: Perú
PERÚ PARQUE ARAUCO ENTERED PERÚ IN 2006 AND IS NOW ONE OF THE TOP SHOPPING CENTER OPERATORS IN THE COUNTRY WITH 252,000 M 2 OF TOTAL GLA | 23
Slide 24: Perú » Shopping Centers
OUR OPERATIONS PERÚ » SHOPPING CENTERS MEGAPLAZA NORTE - LIMA MEGAPLAZA EXPRESS VILLA - LIMA LARCOMAR FASHION CENTER - LIMA MEGAPLAZA EXPRESS VILLA EL SALVADOR - LIMA INOUTLET FAUCETT - LIMA MEGAPLAZA CAÑETE MEGAPLAZA EXPRESS BARRANCA MEGAPLAZA CHIMBOTE MEGAPLAZA EXPRESS CHINCHA VIAMIX CHORRILLOS -
Slide 25: Perú » Shopping Centers
OUR OPERATIONS PERÚ » SHOPPING CENTERS GLA (m2) %Ownership Owned Occupancy Year of GLA (m2) Incorporation LIMA MegaPlaza Norte 107,500 50% 53,700 94.7% 2006 MegaPlaza Express Villa 7,000 50% 3,500 99.3% 2009 Larcomar Fashion Center 26,000 100% 26,000 95.3% 2010 MegaPlaza Express Villa 9,000 50% 4,50
Slide 26: Colombia
COLOMBIA PARQUE ARAUCO ENTERED THE COLOMBIAN MARKET IN 2008 AND SINCE THEN HAS BEEN LEADING THE CHANGE IN THE SHOPPING CENTER BUSINESS MODEL IN THE COUNTRY | 26
Slide 27: Colombia » Shopping Centers
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS PARQUE ARBOLEDA PARQUE CARACOLÍ | 27
Slide 28: Colombia » Shopping Centers
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS GLA (m2) %Ownership Owned Occupancy Year of GLA (m2) Incorporation PEREIRA 33,000 Parque Arboleda 30.3% 10,285 92.9 % 2010 BUCARAMANGA BUCARAMANGA PEREIRA 38,500 Parque Caracolí 55.0 % 21,175 86.8 % 2013 TOTAL COLOMBIA 43.6% 71,500 31,460 89.6% | 28
Slide 29: Future Developments
INTRODUCTION TO PARQUE ARAUCO INVE S T M EN T HIG HLIG HT S O UR OP E R AT IO NS F U T U R E D EV ELO PM ENT S | 29
Slide 30: Future Developments
FUTURE DEVELOPMENTS To date, Parque Arauco has announced projects that will add 124,500 m2 of GLA over the next few years. Developments have been announced in Chile, Perú and Colombia and the total investment is estimated at US$ 565 million. Parque Arauco has a land bank valued at US$ 226.5 million
Slide 31: Landbank
FUTURE DEVELOPMENTS LANDBANK Name M2 % Ownership Total Cost (MMUS$) Quilicura 2 25,486 100% 3 Buenaventura 70,297 100% 16 Coquimbo 40,000 100% 4 Chicureo 47,614 100% 10 Los Andes 40,000 100% 5 Others in Chile 50,000 100% 23 TOTAL CHILE 273,397 100% 61 Parque El Golf 15,000 70% 28.5 Lurin 67,000 100%
Slide 32: Investor Presentation January 2015
INV ESTOR PR ESENTATION JA NUA R Y 2015 | 32