Enjoy S.a. · BCS:ENJOY
Enjoy — Chile Day Conference 2010
24 slides from Enjoy's conference presentation, July 2010
Slide 1: Chile Day Conference
Chile Day Conference New York, July 15th – 16th 2010 Antofagasta Coquimbo Rinconada Viña del Mar Santa Cruz Pucón Puerto Varas Mendoza
Slide 2: Executive summary: Enjoy
Executive summary: Enjoy Leading company in the Chilean gaming industry with over 35 years of successful experience Integral casino, hotel, restaurant, bar, events, shows and excursions operator, with gaming as its core business Important diversification of income in terms of markets, activities and
Slide 3: The Chilean gaming industry counts with a solid regulatory framework
The Chilean gaming industry counts with a solid regulatory framework… • The new regulatory framework assures the bases for the development of the industry in a stable, transparent and profitable manner. • Maximum number of licenses Total of 25, 7 municipal and 18 under the new law • Awarded via inve
Slide 4: … and has great growth potential
… and has great growth potential • The industry recently changed due to the start up of validity of the new casino law: – Increase from 7 to 25 game casino licenses in the country • Great appeal and interest on behalf of investors: – Proposals for over US$ 4.5 billion – Investments for over US$ 1 bi
Slide 5: Enjoy is the leader of the gaming industry in Chile
Enjoy is the leader of the gaming industry in Chile… • Enjoy is the main casino operator in Chile, with over 35 years experience • The Company currently operates a chain of 8 casinos (1 in Argentina), where it counts with 4,840 slot machines, 296 game tables, 33 restaurants and over 1,000 bingo posi
Slide 6: Property structure and governance in accordance with new trends
… it counts with a property structure and governance in accordance with new trends… Property structure Board LV Beagle Chairman Antonio Martínez Seguí 3% Others Director Antonio Martínez Ruiz 16% Director Darío Calderón González Habitat 6% Director Ignacio González Martínez Familia Celfin Small Dire
Slide 7: It is the main entertainment chain in the country
… it is the main entertainment chain in the country… 1 1In project stage Antofagasta Coquimbo Viña del Mar Rinconada Mendoza Santa Cruz Pucón Puerto Varas Chiloé1 7
Slide 8: Wide diversification of licenses in main urban and tourism centers
… it has a wide diversification of licenses located in the main urban and/or tourism centers… Total number Enjoy Start Up of End of Type of License Validity Of licenses Licenses Operations Concession Chile 2015 Coquimbo 1994 2015 2015 Viña 1 1975 2015 Municipal 7 2015 Pucón 1995 2015 2015 Puerto Var
Slide 9: A proven and successful business model
… and it has a proven and successful business model With gaming as its core business, this integral model allows to: • Satisfy a great number of entertainment needs in the same place: gaming, cuisine, hospitality, tourism, events, conferences, children’s games, discotheques and spa • More people are
Slide 10: Well thought investment plan to become the industry leader
Enjoy has developed well thought investment plan in order to become the industry leader … Strategic plan 2006-2009 Strengthening of the team and development of the corporate structure Unique and powerful brand Development of Enjoy Club loyalty program Strong investment in technology: connected TGM s
Slide 11: …and which upholds its future growth and leadership
…and which upholds its future growth and leadership • Between 2006 and 2009, Enjoy developed an important investment plan for over USD 400 Investment projects (CLP$ billions) million in seven projects Materialized Total Enjoy Licenses percentage / year investment • With the completion of 80% of the
Slide 12: Enjoy counts with an in-depth knowledge of its clients
Enjoy counts with an in-depth knowledge of its clients • Development of the Enjoy brand, which consolidates the Company’s operations, has allowed it to join its marketing efforts and develop programs which are directly designed for its clients • “Enjoy Club” loyalty program • Knowledge of the origin
Slide 13: Enjoy counts with diversified cash flows
Enjoy counts with diversified cash flows… • Diversification of incomes based on slot machine clients • Cross-selling between products / services • Market diversification through multiple licenses / operations • High quality of licenses, in the main demographic concentration and tourism potential are
Slide 14: … showing a strong and continuous growth trend
… showing a strong and continuous growth trend Evolution and mix of gross gaming income1 operated by Enjoy (CLP$ billions) Slots 90.000 90% 80% 70% 60.000 60% 50% 40% 30.000 30% 20% 10% - 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Salones de Juego (%) Table ga
Slide 15: … that come from all its businesses
… that come from all its businesses • All of Enjoy’s businesses are profitable and present Evolution of FF&BB’s income synergies since they are important public flow attractors. 2.000 • Large variety of offers and food and beverage (FF&BB) 1.600 CLP$ billions sale points 33 restaurants 1.200 • Hotel
Slide 16: New Rinconada license positions Enjoy
New Rinconada license positions Enjoy… Potential to become the main casino in Chile in terms of income and flow of public It is forecasted as one of Enjoy’s main operations in terms of income and profitability Strong and high NPV and IRR (>> 25%) even in the worst scenario EBITDA contribution at the
Slide 17: … as the closest casino to Santiago
… as the closest casino to Santiago… Closest casino – in travel time – from the main Metropolitan Region market Competitor’s Operations Enjoy operations Enjoy Santiago 17
Slide 18: … currently operating
… currently operating • Enjoy acquired 70% of the property in May 2010 with the objective of being the entertainment leader in the Metropolitan Region • The first stage (casino) is operating with 300 slot machines, 13 game tables, bingo, 2 bars, a restaurant and a cafeteria • As of March 31, 2010 th
Slide 19: Enjoy is the most experienced casino operator in Chile
Enjoy is the most experienced casino operator in Chile Coquimbo • Enjoy has managed and operated casinos Evolution of income for over 35 years 20.000 • Has developed integral projects (hotels 16.000 and casinos) from scratch CLP$ billions 12.000 • Became one of the leading hotel 8.000 4.000 operator
Slide 20: Evolution of main results
Evolution of main results Evolution of quarterly results • In the first part of 2009 the result 30.000 was affected by new operations in 25.000 trial run period 20.000 (reaching full operation) and by CLP$ billions 15.000 higher interest expenses before 10.000 the implemented financial 5.000 strengt
Slide 21: Financial strengthening plan
Financial strengthening plan • During 2009, shareholders capitalized the loans that they had granted to Enjoy for $11 billion • In July 2009 the process to enter the stock market took place, placing 30% of the shares in the capitals market, which allowed the collection of $23.1 billion, funds which
Slide 22: Initial Corporate Bond Issuance – June 2010
Initial Corporate Bond Issuance – june 2010 • Diversify financial sources OBJETIVES • Optimize duration of financial debt • Release pledged assets from project finance structures 2013 en 2010 2011 2012 adelante Leverage (Net Debt to Net Worth) 3,0x 3,0x 2,5x 2,0x Net Debt to EBITDA n.a. 5,0x 4,5x 4,
Slide 23: Debt amortization structure
Debt amortization structure Debt amortization structure after bond issuance 40.000 30.000 CLP$ millones 20.000 10.000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fuente: Enjoy 23
Slide 24: Final Considerations
Final Considerations Successful Solid industry, Bond issuance strongly improves debt regulated and structure & with growth financial potential sources Diversified Entertainment project and market leader business base in Chile Solid brand Proven and positioning and successful in-depth business model,