Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Investor Presentation (June 2015)
32 slides from Parque Arauco's investor presentation, June 2015
Slide 1: Investor Presentation June 2015
INVESTOR PRESENTATION JUNE 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 INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS
Slide 4: Parque Arauco at a Glance
INT RO DUCT IO N 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% 27.6% 8.0% Total GLA (m2)1 408,000 3
Slide 5: Successful Growth Story
INT RO DUCT IO N 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 Perú with the purchase of a 45% stake in MegaPlaza 2.0x Norte in Lima 2009 Opening of Parque Arauco´s first neighborhood cen
Slide 6: Revenue Type and Contract Duration
INT RO DUCT IO N REVENUE TYPE AND CONTRACT DURATION FIXED VS VARIABLE RENTAL REVENUES CONTRACT LENGTH (BASED ON % OF GLA) 1 MOST OF OUR REVENUES ARE PROTECTED AGAINST INFLATION 14% Variable Revenues 59% 100% 14% 5% 86% Fixed Revenues 22% ‹2 years 2-3 years 3-4 years ›4 years Total OUR RENTAL REVENUE
Slide 7: Operation Summary
INT RO DUCT IO N OPERATION SUMMARY THE COMPANY HAS 728,500 M 2 OF TOTAL GLA IN 14 REGIONAL SHOPPING CENTERS, 6 NEIGHBORHOOD SHOPPING CENTERS, 4 OUTLET MALLS AND 12 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA CHILE PERÚ COLOMBIA GLA (m2) 408,000 GLA (m2) 336,000 GLA (m2) 71,500 % Ownership 92% % Ownershi
Slide 8: Diversification of GLA
INT RO DUCT IO N DIVERSIFICATION OF GLA OUR INVESTMENT IN PERU AND COLOMBIA HAS ENABLED US TO DIVERSIFY GLA ACROSS THE THREE COUNTRIES. GLA DISTRIBUTION BY COUNTRY 815,500 9% 41% 358,699 22% 130,785 50% 78% 100% 2004 2009 1Q 2015 % of distribution CHILE PERÚ COLOMBIA Source: Parque Arauco Does not i
Slide 9: Investment Highlights
INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS
Slide 10: Investment Highlights
INVE ST ME NT H IG H LIG H TS INVESTMENT HIGHLIGHTS 6. 1. Outstanding Favorable Financial Macroeconomic Performance Outlook and with a Conservative Attractive Industry Debt Structure Dynamics 5. 2. Leading Position in the Ambitious Andean Region Investment Commercial Plan Real Estate Industry Strong
Slide 11: Favorable Macroeconomic Outlook and Attractive Industry Dynamics
INVE ST ME NT H IG H LIG H TS FAVORABLE MACROECONOMIC OUTLOOK AND ATTRACTIVE INDUSTRY DYNAMICS PARQUE ARAUCO IS POSITIONED IN COUNTRIES WITH FAVORABLE MACROECONOMIC PROSPECTS AND UNDERPENETRATED SHOPPING CENTER SECTORS STRONG REAL GDP GROWTH PROJECTIONS… …WITH A STILL RELATIVELY LOW GDP PER CAPITA 2
Slide 12: Leading Position in the Andean Region Commercial Real Estate Industry
INVE ST ME NT H IG H LIG H TS 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 THIRD LARGEST PLAYER IN CHILE, SECOND LARGEST IN PERU AND THIRD LARGEST IN COLOMBIA IN TERMS OF GLA Sho
Slide 13: Differentiated Business Model
INVE ST ME NT H IG H LIG H TS 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 P
Slide 14: Strong Commercial Relationships
INVE ST ME NT H IG H LIG H TS STRONG COMMERCIAL RELATIONSHIPS OVER 30 YEARS OF INDUSTRY EXPERIENCE HAS ENABLED PARQUE ARAUCO TO CREATE SOLID AND LONGSTANDING COMMERCIAL RELATIONSHIPS WITH ITS TENANTS CHILE PERÚ COLOMBIA - 14 -
Slide 15: Ambitious Investment Plan
INVE ST ME NT H IG H LIG H TS AMBITIOUS INVESTMENT PLAN OUR INVESTMENT PIPELINE IS INVESTMENT TIMELINE (US$MM) COMPLEMENTED BY OUR LANDBANK 187 108 -19 105 180 289 205 730 FROM WHICH FUTURE PROJECTS WILL BE DEVELOPED. 308 79 US$MM PERÚ 311 52 US$MM CHILE 65 51 71 US$MM 7 COLOMBIA 47 124 63 14 56 180
Slide 16: First Quarter Results by Country
INVE ST ME NT H IG H LIG H TS IN SPITE OF A WEAKER MACROECONOMIC ENVIRONMENT, RESULTS HAVE BEEN POSITIVE IN ALL THREE COUNTRIES, ESPECIALLY IN PERU FIRST QUARTER RESULTS TENANT SALES (1) REVENUES (1) EBITDA (1) (2) +11.1% +13.4% +13.5% 206,701 21,064 18,152 186,029 18,569 15,995 CHILE 1Q14 1Q15 1Q14
Slide 17: Mortgages Lifted, Improved Debt Rating, Longer Liability Duration
INVE ST ME NT H IG H LIG H TS 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 1Q14: 1Q15: MORTGAGES OVER PARQUE MORTGAGES OV
Slide 18: Financing Policy of 50% Debt and 50% Equity; Covenants
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO´S POLICY IS TO FINANCE PROJECTS WITH 50% DEBT AND 50% EQUITY, AND WE ARE COMFORTABLY WITHIN ALL OUR COVENANTS LIABILITIES/EQUITY NET FINANCIAL DEBT/EQUITY Covenant 1.09 x 1.50 x 1.05 x 0.89 x 0.73 x 0.87 x 0.85 x 0.78 x 0.81 x 0.64 x 0.59 x 0.55 x 0.41 x 0
Slide 19: Our Operations
INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS
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
Slide 21: Chile: Shopping Centers
O UR O PE RAT IO NS CHILE: SHOPPING CENTERS PARQUE ARAUCO KENNEDY - SANTIAGO ARAUCO MAIPÚ - SANTIAGO ARAUCO ESTACIÓN - SANTIAGO ARAUCO QUILICURA - SANTIAGO STRIPCENTERS CHILE ARAUCO SAN ANTONIO - SAN ANTONIO ARAUCO CHILLÁN - CHILLÁN PREMIUM OUTLET MALLS - BUENAVENTURA, SAN PEDRO Y CURAUMA - 21 -
Slide 22: Chile: Shopping Centers
O UR O PE RAT IO NS CHILE: SHOPPING CENTERS Owned Occupancy Year of GLA (m2) %Ownership GLA (m2) Incorporation SANTIAGO Buenaventura Outlet Parque Arauco Kennedy 115,000 100% 115,000 97.9% 1982 Quilicura Arauco Maipú 75,000 100% 75,000 96.5% 1993 Kennedy Arauco Estación 68,500 83% 56,855 97.1% 2008
Slide 23: Peru
PERÚ PARQUE ARAUCO ENTERED PERÚ IN 2006 AND IS NOW ONE OF THE TOP SHOPPING CENTER OPERATORS IN THE COUNTRY WITH 336,000 M 2 OF TOTAL GLA
Slide 24: Peru: Shopping Centers
O UR O PE RAT IO NS PERU: 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 CHORRILLO
Slide 25: Peru: Shopping Centers
O UR O PE RAT IO NS PERÚ: SHOPPING CENTERS Owned Occupancy Year of GLA (m2) %Ownership LIMA GLA (m2) Incorporation MegaPlaza Norte 110,500 50% 55,250 93.7% 2006 MegaPlaza Express Villa 7,000 50% 3,500 98.3% 2009 Larcomar 26,000 100% 26,000 89.6% 2010 MegaPlaza Express Villa El 9,000 50% 4,500 98.4%
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
Slide 27: Colombia: Shopping Centers
O UR O PE RAT IO NS COLOMBIA: SHOPPING CENTERS PARQUE ARBOLEDA- PEREIRA PARQUE CARACOLÍ - BUCAMARANGA - 27 -
Slide 28: Colombia: Shopping Centers
O UR O PE RAT IO NS COLOMBIA: SHOPPING CENTERS Owned Occupancy Year of GLA (m2) % Ownership GLA (m2) Incorporation PEREIRA Parque Arboleda 33,000 30.3% 9,999 93.1 % 2010 BUCAMARANGA Parque Caracolí 38,500 55 % 21,175 86.1 % 2013 TOTAL COLOMBIA 71,500 44% 31,174 89.3% Bucaramanga Pereira - 28 -
Slide 29: Future Developments 2015 and Onward
FUTURE DEVELOPMENTS 2015 AND ONWARD PARQUE ARAUCO HAS ANNOUNCED PROJECTS THAT WILL ADD 277,500 M2 OF GLA OVER THE NEXT FEW YEARS. DEVELOPMENTS HAVE BEEN ANNOUNCED IN CHILE, PERU AND COLOMBIA AND THE TOTAL INVESTMENT IS ESTIMATED AT US$ 730 MILLION. GREENFIELD PROJECTS Estimated Total GLA Owned GLA T
Slide 30: Parque La Colina Progressing On-Time and Within Budget
FUT URE DE VE LO PME NTS PARQUE LA COLINA IS PROGRESSING ON-TIME AND WITHIN BUDGET AND SHOULD BE INAUGURATED DURING THE FIRST HALF OF 2017 CONSTRUCTION COMPANY: CONSTRUCTION OVERSIGHT: Construction state: Pile driving completed, currently building third underground level. Commercialization state: Co
Slide 31: Landbank
FUT URE DE VE LO PME NTS LANDBANK PARQUE ARAUCO HAS A LANDBANK VALUED AT US$202 MILLION (AT ACQUISITION COST), WHICH WILL BE USED TO SUPPORT FUTURE GROWTH AND TO DEVELOP SHOPPING CENTERS, OUTLET MALLS AND STRIP CENTERS IN CHILE, PERU AND COLOMBIA. Total Cost NAME M2 % Ownership (MMUS$) Quilicura 2 2
Slide 32: “hc se
_-— “hc se Porgueaaue A dallas SE iw