Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Investor Presentation (August 2014)
31 slides from Parque Arauco's investor presentation, August 2014
Slide 1: Investor Presentation August 2014
INV ESTOR PR ESENTATION AU GU S T 2014 |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$MM) 2006 First steps of expansion into Perú (45% stake in Megaplaza Norte in Lima) 3.9x 2006 Chilean expansion begins with Mall Center in Curicó 194 2009 First Neighborhood shopping center in Perú 181 (Mega Express Villa, in Chorrill
Slide 7: Our Revenues Are Protected Against Inflation
INTRODUCTION TO PARQUE ARAUCO REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED AND 64% OF OUR CONTRACTS HAVE A DURATION OF MORE PRIMARILY FROM FIXED CONTRACTS THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (JUL 13 - JUN 14) CONTRACT LENGTH (BASED ON % OF GLA) 1 100 17% Variable Rev
Slide 8: Operations Summary
INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 715,154 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 9 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m2) 73,500 % Ownership 43.6 % Owned GLA 32,010 Partners: Grupo Bancol
Slide 9: Introduction to Parque Arauco: Investment Highlights
I NTRO D U C T I O N TO PARQ U E A R AU C O INVESTMENT HIGHLIGHTS OUR OP E R AT IO NS F UTU R E D EV ELO PMENT S |9
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS PARQUE ARAUCO IS THE RIGHT COMPANY IN THE RIGHT INDUSTRY IN THE RIGHT COUNTRIES 6 1 Outstanding Favorable Financial Performance Macroeconomic with a Conservative Outlook and Attractive Debt Structure Industry Dynamics Leading Ambitious Position in the 2 5
Slide 11: Favorable Macroeconomic Outlook and Attractive Industry Dynamics
INVESTMENT HIGHLIGHTS FAVORABLE MACROECONOMIC OUTLOOK AND ATTRACTIVE INDUSTRY DYNAMICS PARQUE ARAUCO IS POSITIONED IN COUNTRIES WITH STRONG MACROECONOMIC PROSPECTS AND UNDERPENETRATED SHOPPING CENTER SECTORS STRONG REAL GDP GROWTH PROJECTIONS… …WITH A STILL RELATIVELY LOW GDP PER CAPITA 2014E (US$)
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 3RD 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 High Perf
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
Slide 15: Ambitious Investment Plan
INVESTMENT HIGHLIGHTS AMBITIOUS INVESTMENT PLAN INVESTMENT TIMELINE (US$MM) OUR INVESTMENT PIPELINE IS 587 COMPLEMENTED BY OUR LANDBANK 187 108 -19 105 180 289 FROM WHICH FUTURE PROJECTS WILL BE DEVELOPED. Peru 72.5 US$MM 289 219.5 US$MM VALUE OF Chile 201 LANDBANK 61 US$MM 65 7 124 47 Colombia 14 5
Slide 16: 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$MM (1) 194 181 156 105 89 132 122 18% 2009 2010 2011 2012 2013
Slide 17: Conservative Debt Structure
INVESTMENT HIGHLIGHTS CONSERVATIVE DEBT STRUCTURE SOLID FINANCIAL PERFORMANCE AND A CONSERVATIVE DEBT STRUCTURE HAS KEPT FINANCIAL COVENANTS AT COMFORTABLE LEVELS ALLOWING FOR FAVORABLE FINANCING CONDITIONS NET FINANCIAL DEBT US$MM 1 FINANCIAL DEBT AMORTIZATION SCHEDULE US$MM 1 674 619 265 585 541 4
Slide 18: Introduction to Parque Arauco: 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 | 18
Slide 19: 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 | 19
Slide 20: Chile » Shopping Centers
OUR OPERATIONS CHILE » SHOPPING CENTERS PARQUE ARAUCO KENNEDY - SANTIAGO ARAUCO MAIPÚ - SANTIAGO PASEO ARAUCO ESTACIÓN - SANTIAGO ARAUCO QUILICURA - SANTIAGO BUENAVENTURA OUTLET MALL - SANTIAGO ARAUCO SAN ANTONIO - SAN ANTONIO ARAUCO CHILLÁN - CHILLÁN STRIPCENTERS CHILE MALL OUTLET CONCEPCIÓN - CONC
Slide 21: Chile » Shopping Centers
OUR OPERATIONS CHILE » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy SANTIAGO SANTIAGO Parque Arauco Kenned 115,200 100 % 115,200 97.2% Quilicura Buenaventura Outlet Arauco Maipú 74,000 100 % 74,000 96.9% Kennedy Paseo Arauco Estación 68,000 83 % 56,440 98.6% Estación Central Arauco
Slide 22: Perú
PERÚ PARQUE ARAUCO ENTERED PERÚ IN 2006 AND IS NOW ONE OF THE TOP SHOPPING CENTER OPERATORS IN THE COUNTRY WITH 247,118 M 2 OF TOTAL GLA | 22
Slide 23: 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 PARQUE LAMBRAMANI -
Slide 24: Perú » Shopping Centers
OUR OPERATIONS PERÚ » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy LIMA MegaPlaza Norte 107,400 50 % 53,700 94.7% MegaPlaza Express Villa 7,000 50 % 3,500 99.3% Larcomar Fashion Center 26,000 100 % 26,000 95.3% MegaPlaza Express Villa 9,000 50 % 4,500 99.4 % El Salvador CHIMBOTE InO
Slide 25: 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 | 25
Slide 26: Colombia » Shopping Centers
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS PARQUE ARBOLEDA PARQUE CARACOLÍ | 26
Slide 27: Colombia » Shopping Centers
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy PEREIRA Parque Arboleda 34,000 30.3 % 10,285 93.7 % BUCARAMANGA BUCARAMANGA PEREIRA Parque Caracolí 39,500 55 % 21,725 89.7 % TOTAL COLOMBIA 73,500 43.6% 32,010 91.5% | 27
Slide 28: Introduction to Parque Arauco: 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 | 28
Slide 29: Future Developments
FUTURE DEVELOPMENTS To date, Parque Arauco has announced projects that will add 141,648 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$ 587 million. Parque Arauco has a land bank valued at US$ 219.5 million
Slide 30: 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 31: Investor Presentation August 2014
INV ESTOR PR ESENTATION AU GU S T 2014 | 31