Enjoy S.a. · BCS:ENJOY
Enjoy — Chile Day New York 2009
62 slides from Enjoy's conference presentation, Jul 16, 2009
Slide 1: Chile Day New York, July 16-17, 2009
Chile Day New York, July 16-17, 2009 Rodrigo Larrain Chief Financial Officer rlarrain@enjoy.cl www.enjoy.cl Antofagasta Coquimbo Viña del Mar Santa Cruz Pucón Puerto Varas Mendoza
Slide 2: Enjoy
Enjoy Enjoy is the leading gaming & entertainment company in Chile with over 34 years of experience. On July 8th, 2009 Enjoy successfully completed its IPO, placing 30% of its shares in the Chilean stock market, becoming the first Latin-American gaming & entertainment company publicly traded and the
Slide 3: Enjoy
Enjoy Shares outstanding: 1,540,015,942 Stock price: CLP$ 50.45 Market Cap: USD$ 141 million Ownership: 70% Martinez family (founders) 30% floating (Pension funds, local & foreign investors, retail, etc.) 2009 estimates Net Sales: USD$ 157 million Ebitda: USD$ 50 million Total Assets: USD$ 419 milli
Slide 4: The entertainment industry
The entertainment industry • High growth potential: Spending in entertainment activities against per capita income CHILE Per capita income (US$)
Slide 5: The Chilean gaming industry
The Chilean gaming industry Sound regulation framework Gaming law 19,995 • Specific number of licences awarded (increase from 7 to 25) • Grants exclusivity on relevant market (within 70km) for a 15 year period • Taxation scheme: 20% on net income from gaming activities • Concession Award Contest via
Slide 6: The Chilean gaming industry
The Chilean gaming industry Municipal Licences • Municipal licences will expire on 31 December 2015 • As of 2016 they will be subject to stipulations of the Gaming Casino Law • Licence bidding contest using the same Gaming Casino Law system Enjoy best opportunities / prospects: • Market knowledge •
Slide 7: The Chilean gaming industry
The Chilean gaming industry Attractive and with a significant potential • The bidding contest attracted bids in excess of US$ 4,500 million • Investments already implemented exceed US$ 850 million 2.9 Gaming positions for each 1,000 people 1.1 0.9 0.7 0.3 0.3 Chile Chile Central Chile Central Chile
Slide 8: The Chilean gaming industry
The Chilean gaming industry Demand likely to be developed Gaming spending (as % of GDP) 1.15% 0.76% 0.71% 0.42% 0.20% Spain United United Argentina Chile Kingdom States Sources: LarraínVial, GAGC
Slide 9: Enjoy: A leader in the Gaming & Entertainment industry
Enjoy A leader in the Gaming & Entertainment industry
Slide 10: Enjoy Vision
Enjoy Vision To be recognized as a world class company within the gaming & entertainment industry, thanks to the effective management of its customers’ experiences, its profit generation to shareholders, the mutual loyalty attitude afforded to its staff and its sound business ethics
Slide 11: Enjoy Chain of Facilities
ENJOY Chain of Facilities A enJoy Casino & Resort 3 < Ee e 3 VINA DELMAR Gamno& Fesert
Slide 12: Who are we?
Who are we? Board of Directors Senior Management Structure
Slide 13: Breakdown of Enjoy's income
Breakdown of Enjoy’s income Although our portfolio of services is comprehensive, our main business scope is gaming 2006 2010 Income breakdown by business type Income breakdown by business type Food & beverage Food & . 9% beverage . Gaming 20% tables Gaming tables Slot Slot machines machines
Slide 14: Breakdown of Enjoy's Ebitda
Breakdown of Enjoy’s Ebitda All business units must be profitable in their own right and must boost also the comprehensive entertainment offering 2006 2010 EBITDA breakdown EBITDA breakdown
Slide 15: The Enjoy Model: A Differentiation Strategy
The Enjoy Model: A Diferentiation Strategy
Slide 16: Proven Business Model
Proven Business Model Enjoy’s gross gaming income evolution and mix Gaming income Slot machines (%)
Slide 17: Powerful Brand
Powerful Brand » 4 mM mM ve yr +e enJOY’ Casino & Resort
Slide 18: Customer loyalty program
Customer loyalty program Personalised Marketing 250,000 200,000 150,000 100,000 50,000
Slide 19: Virtuous Managerial Cycle
Virtuous Managerial Cycle
Slide 20: Sound foundations
Sound foundations provide support to our business model GAMING Managerial Cycle Our People Loyalty Program Strong Brand
Slide 21: Business Model Key Success Factors
Business Model Key Success Factors • Increased customer flows • Comprehensive GAMING entertainment offering • Service Quality • Higher cross-selling
Slide 22: Investment Plan
+ emai —— 4 ——— Investment Plan
Slide 23: Investment Plan
Investment Plan Aimed at take advantage of profitable opportunities and enhance Enjoy’s leadership (Chilean $ million) Coming On Stream Implemented by March 2009 Total Investment Antofagasta November 2008 51,015 51,015 September 2007 and Coquimbo 49,761 49,761 May 2008 Viña del Mar Casino furnishing
Slide 24: Enjoy Chain
Enjoy Chain Business Model Market Diversification Enjoy Chain: • A single operator • Customers’ loyalty • Revenue management • Transversal services • Synergies and economies of scale
Slide 25: Strategic Focus for Period 2009-2010
Enjoy Strategic Focus for Period 2009 - 2010 Maximise the profit generation expected from the USD 340 million investment plan Antofagasta Coquimbo Viña del Mar Santa Cruz Pucón Puerto Varas Mendoza
Slide 26: Development stage of the Enjoy Business Units by December 2009
Development stage of the Enjoy Business Units by December 2009 PROSPECTING STAGE ENJOY CROATIA INVESTMENT STAGE ENJOY CHILOÉ COMMISSIONING STAGE ENJOY PUERTO VARAS* GROWTH STAGE ENJOY ANTOFAGASTA ENJOY COQUIMBO ENJOY MENDOZA CASINO DE COLCHAGUA MATURITY STAGE ENJOY PUCÓN ENJOY VIÑA DEL MAR *: New co
Slide 27: Business capabilities
Business capabilities Gaming Income (in millions of $) 100.000 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Steady business innovation Market development capability
Slide 28: Business capabilities
Business capabilities All markets need a development period if they are to achieve their potential: Evolution of gaming income (in US$ million)
Slide 29: Business capabilities
Business capabilities Experience Higher Accelerate + markets’ investment Proven business maturity returns model
Slide 30: Business capabilities
Business capabilities Investments already implemented Business units in operational mode Operations generating EBITDA Growth capability already in place
Slide 31: Financial background
Financial background Relevant aspects concerned with the investment cycle Investment period: 2007 - 2008 “Investment” in the projects’ start-up stage (not eligible for capitalization under Chilean GAAP): Antofagasta Staff recruiting Coquimbo Training Mendoza Travel Colchagua Advisory services Pucón
Slide 32: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 2006 Assets 31.12.06 A normal year with 4 Current assets 22,845 active operations Fixed assets 58,656 SAP implementation Other assets 27,246 Total assets 108,747 Kick off with the construction of new Liabilities i
Slide 33: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 2007 Assets 31.12.06 31.12.07 Sept. 2007: Fire at Hotel Current assets 22,845 33,094 del Lago – Pucón Fixed assets 58,656 65.848 Fixed asset write-off Other assets 27,246 23,755 Insurance cover Total assets 108,74
Slide 34: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 2007 Assets 31.12.06 31.12.07 Current assets 22,845 33,094 Fixed assets 58,656 65,848 Other assets 27,246 23,755 Total assets 108,747 122,697 Liabilities Disbursement of Short term liab. 31,179 64.378 construction
Slide 35: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 2008 Assets 31.12.06 31.12.07 31.12.08 Purchase of the Gran Current assets 22,845 33,094 31,042 Hotel at Pucón Fixed assets 58,656 65,848 138.755 The Enjoy projects at Other assets 27,246 23,755 51.390 Coquimbo an
Slide 36: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 2008 Assets 31.12.06 31.12.07 31.12.08 Current assets 22,845 33,094 31,042 Fixed assets 58,656 65,848 138,755 Full disbursement of credit Other assets 27,246 23,755 51,390 facilities for investments Total assets 1
Slide 37: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 March 09 Assets 31.12.06 31.12.07 31.12.08 31.03.09 Current assets 22,845 33,094 31,042 27,816 Puerto Varas Varas – Fixed assets 58,656 65,848 138,755 143.682 construction in progress Other assets 27,246 23,755 51
Slide 38: Financial background
Financial background Enjoy’s Consolidated Balance Sheet CLP $ million as of March 2009 PROFORMA Assets 31.12.06 31.12.07 31.12.08 31.03.09 Current assets 22,845 33,094 31,042 27,816 Fixed assets 58,656 65,848 138,755 143,682 Other assets 27,246 23,755 51,390 50,861 Total assets 108,747 122,697 221,1
Slide 39: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 31-12-06 Net Revenues 49,242 Operational costs -24,454 SG&A Expenses -10,386 EBIT 14,400 EBIT margin 29.2% Ebitda 20.063 Ebitda margin 40,7% A normal year with 4 active operations Important generation of Ebitda
Slide 40: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 31-12-06 31-12-07 Net Revenues 49,242 49,339 Operational costs -24,454 -24,803 SG&A Expenses -10,386 -14,050 EBIT 14,400 10,485 EBIT margin 29.2% 21.3% Ebitda 20,063 17.556 Ebitda margin 40.7% 35,6% Results aff
Slide 41: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 31-12-06 31-12-07 31-12-08 Net Revenues 49,242 49,339 64,499 Operational costs -24,454 -24,803 -48.721 SG&A Expenses -10,386 -14,050 -12,661 EBIT 14,400 10,485 3,118 EBIT margin 29.2% 21.3% 4.8% Ebitda 20,063 1
Slide 42: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 PROFORMA 31-12-06 31-12-07 31-12-08 Net Revenues 49,242 49,339 64,499 Operational costs -24,454 -24,803 -41.192 SG&A Expenses -10,386 -14,050 -12,661 EBIT 14,400 10,485 10.647 EBIT margin 29.2% 21.3% 16.5% Ebit
Slide 43: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 PROFORMA 31-12-06 31-12-07 31-12-08 31-03-09 Net Revenues 49,242 49,339 64,499 23.357 Operational costs -24,454 -24,803 -41,192 -16,974 SG&A Expenses -10,386 -14,050 -12,661 -2,279 EBIT 14,400 10,485 10,647 4,1
Slide 44: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 31-12-06 31-12-07 EBIT 14,400 10,485 Non operating income 4.469 4.081 Interest Expenses -1,973 -2,801 Monetary correction 0 2,890 Other non operational items 6,441 3,992 Income tax -2,734 -3,403 Minority intere
Slide 45: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 31-12-06 31-12-07 31-12-08 EBIT 14,400 10,485 3,118 Non operating income 4,469 4,081 -3.796 Interest Expenses -1,973 -2,801 -10.089 Monetary correction 0 2,890 8,297 Other non operational items 6,441 3,992 -2,0
Slide 46: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 PROFORMA 31-12-06 31-12-07 31-12-08 EBIT 14,400 10,485 10.647 Non operating income 4,469 4,081 -3.796 Interest Expenses -1,973 -2,801 -10.089 Monetary correction 0 2,890 8,297 Other non operational items 6,441
Slide 47: Financial background
Financial background Enjoy’s Consolidated Income Statement CLP $ million as of March 2009 PROFORMA 31-12-06 31-12-07 31-12-08 31-03-09 EBIT 14,400 10,485 10,647 4,104 Non operating income 4,469 4,081 -3,796 -6,839 Interest Expenses -1,973 -2,801 -10,089 -4,186 Monetary correction 0 2,890 8,297 -3,18
Slide 48: Financial background
Financial background Going forward As of the second quarter of 2009, the Interest expenses will drop considerably Credit and variable interest rate renewals against a background of significantly reduced costs Liability reduction of $ 11,000 million following the April 30th capitalization All financi
Slide 49: Financial background
Financial background Strong continuous Bank Support to our company LT financing LT financing LT financing Other financial Enjoy Coquimbo Enjoy Antofagasta Gran Hotel Pucón arrangements US$ 50 M US$ 45 M US$ 21 M US$ 60 M + 2007 2008 2008 2008
Slide 50: Financial background
Financial background Financial Strategy Access to the capital market in order to project Enjoy’s leadership into the future Release bank credit lines leaving room to finance future new projects /investment opportunities Diversification of the finance sources approach Bond Market
Slide 51: Investment Considerations
* * ®. 4 enjoy’ Casino & Resort Investment Considerations
Slide 52: Investment considerations
Investment considerations • Unique opportunity for joining the gaming industry in Chile • Investments already implemented • Operations generating growing EBITDA • Professional management and deep know-how • The Leader in the gaming and entertainment industry: • Best value proposition • Efficient man
Slide 53: ANNEX Enjoy Facilities
ANNEX Enjoy Facilites
Slide 54: Antofagasta
Antofagasta
Slide 55: Coquimbo
Coquimbo
Slide 56: Viña del Mar
Viña del Mar
Slide 57: Colchagua
Colchagua
Slide 58: Pucón
Pucón
Slide 59: Puerto Varas
ever ee || TT == —— ee er 1 | LT a) | --- Puerto Varas
Slide 60: Chiloé
Chiloé
Slide 61: Mendoza
icin iil [el Kf ~
Slide 62: Disclaimer
Disclaimer: This presentation was prepared by Enjoy S.A. to provide general information about the company. The presentation is based in public information and internal Company data. Enjoy assumes no legal responsibility whatsoever for either the accuracy of any projection shown herein. Actual result