Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Investor Presentation (July 2015)
31 slides from Parque Arauco's investor presentation, July 2015
Slide 1: Investor Presentation July 2015
INVESTOR PRESENTATION JULY 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 OUR OPERATIONS INVESTMENT HIGHLIGHTS 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 1 CONTRACT LENGTH (BASED ON % OF GLA) 1 MOST OF OUR REVENUES ARE PROTECTED AGAINST INFLATION 14% Variable Revenues 59% 100% 14% 5% 86% 22% Fixed Revenues ‹2 years 2-3 years 3-4 years ›4 years Total OUR RENTAL REVEN
Slide 7: Our Operations
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 8: Parque Arauco Has a High Quality Portfolio
O UR O PE RAT IO NS PARQUE ARAUCO HAS A HIGH QUALITY PORTFOLIO PARQUE ARAUCO KENNEDY - CHILE ARAUCO MAIPÚ - CHILE LARCOMAR - PERU LO CA TED IN THE H EA RT OF ON E OF T HE M A IN LO C A TE D I N TH E H I G H E ST G R OW I N G MI DD L E ONLY MALL IN LIMA WITH OCEANVIEWS, CLOSE TO H OT EL AND OFFIC E D
Slide 9: Portfolio in Chile: Shopping Centers, Outlet Malls and Strip Centers
O UR O PE RAT IO NS PARQUE ARAUCO HAS 6 REGIONAL SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIP CENTERS IN CHILE AND THE AVERAGE AGE OF THE PORTFOLIO IS 16 YEARS Owned Occupancy Year of GLA (m2) %Ownership GLA (m2) Incorporation SANTIAGO Buenaventura Outlet Parque Arauco Kennedy 115,000 100% 115,000
Slide 10: Portfolio in Peru
O UR O PE RAT IO NS IN PERU, THE COMPANY HAS 6 REGIONAL AND 6 NEIGHBORHOOD SHOPPING CENTERS, 1 OUTLET MALL AND 1 STRIP CENTER; THE AVERAGE AGE OF THE PORTFOLIO IS 5 YEARS Owned Occupancy Year of GLA (m2) %Ownership1 LIMA GLA (m2) Incorporation MegaPlaza Norte 110,500 50% 55,250 93.7% 2006 MegaPlaza
Slide 11: Portfolio in Colombia
O UR O PE RAT IO NS PARQUE ARAUCO HAS TWO REGIONAL SHOPPING MALLS IN COLOMBIA AND THE AVERAGE AGE OF THE PORTFOLIO IS 3 YEARS Owned Occupancy Year of GLA (m2) % Ownership1 GLA (m2) Incorporation PEREIRA Parque Arboleda 33,000 30.3% 9,999 93.1 % 2010 BUCAMARANGA Bucaramanga Parque Caracolí 38,500 55
Slide 12: Investment Highlights
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 13: Investment Highlights
INVE ST ME NT H IG H LIG H TS INVESTMENT HIGHLIGHTS 6. 1. Strong results Important growth in a challenging opportunities macroeconomic environment 5. 2. Conservative Country, debt structure format and and oustanding socio-economic financial diversification performance Strong Solid management commerc
Slide 14: The Andean Region Has Been Growing at a Slower, Yet Stable Pace
INVE ST ME NT H IG H LIG H TS THE ANDEAN REGION HAS BEEN GROWING AT A SLOWER, YET STABLE PACE PERU AND COLOMBIA ARE EXPECTED TO GROW AT RELATIVELY HIGH RATES COMPARED TO THE REST OF LATIN AMERICA RELATIVELY STRONG REAL GDP GROWTH …WITH A STILL RELATIVELY LOW GDP PER PROJECTIONS… CAPITA 2015E (US$) -
Slide 15: Positive Results in All Three Countries, First Quarter
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 16: Diversification by Country, Format and Socio-economic Level
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO DIVERSIFIES ITS MARKET RISKS AT A COUNTRY, FORMAT, AND SOCIO-ECONOMIC LEVEL COUNTRY LEVEL DIVERSIFICATION FORMAT LEVEL DIVERSIFICATION (% OF TOTAL GLA) (% OF TOTAL GLA) COLOMBIA Others 8.8% Neighborhood 8.5% 7.7% 41.2% PERU 50.0% 83.8% CHILE CHILE CHILE Re
Slide 17: Market Leader in the Outlet Format
INVE ST ME NT H IG H LIG H TS WITH A 45% MARKET SHARE IN CHILE, PARQUE ARAUCO IS THE MARKET LEADER IN THE OUTLET FORMAT IN THE ANDEAN REGION OUTLETS CURRENTLY IN OUR PORTFOLIO OUTLETS UNDER CONSTRUCTION ARAUCO PREMIUM OUTLET BUENAVENTURA, CHILE ARAUCO PREMIUM OUTLET CONCEPCIÓN, CHILE OUTLET LURIN, P
Slide 18: History of Strong Commercial Relationships
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO HAS A HISTORY OF STRONG COMMERCIAL RELATIONSHIPS CHILE PERÚ COLOMBIA “Tiffany is always searching for opportunities to create memorable moments for our clients. Parque Arauco, with an open air area, beautiful views of the Chilean mountains and a dedication
Slide 19: Supporting Globalization of Brands Entering the Andean Region
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO IS SUPPORTING THE GLOBALIZATION OF SEVERAL BRANDS ENTERING THE ANDEAN REGION NEW TENANTS IN PARQUE ARAUCO KENNEDY IN THE LAST 5 YEARS: International Local Name GLA Name GLA 74% of new GLA leased in Parque FOREVER 21 1,639 ETIQUETA NEGRA 209 Arauco Kennedy
Slide 20: Experienced Management Team, Corporate Governance and CSR
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO HAS AN EXPERIENCED MANAGEMENT TEAM AS WELL AS SOLID CORPORATE GOVERNANCE AND CSR POLICIES PARQUE ARAUCO´S ADMINISTRATION RECENT MANAGEMENT AWARDS VICEPRESIDENCIA EJECUTIVA Juan Antonio Álvarez GERENCIA GERENCIA GERENCIA GERENCIA DE CORPORATIVA CORPORATIVA
Slide 21: Financing Policy of 50% Debt and 50% Equity
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 IS COMFORTABLY WITHIN ALL ITS COVENANTS LIABILITIES/EQUITY NET FINANCIAL DEBT/EQUITY Covenant Covenant 1.50 x 1.40 x 1.09 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 0.5
Slide 22: Lifted Mortgages, 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 23: Low Shopping Center Penetration vs. Developed Countries
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO PARTICIPATES IN MARKETS WITH A RELATIVELY LOW PENETRATION IN THE SHOPPING CENTER SECTOR VS. DEVELOPED COUNTRIES GLA Canada % of U.S.A. 2,191 64% per 1,000 retail sales inhabitants in shopping Canada U.S.A. 54% centers 1,440 Chile 177 202 Chile 25% Mexico 1
Slide 24: Leading Position in Chile and Peru, Growing in Colombia
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO HAS A LEADING POSITION IN CHILE AND PERU, AND IS GROWING ITS PARTICIPATION IN THE FRAGMENTED COLOMBIAN MARKET TOTAL GLA TOTAL GLA MARKET PARQUE ARAUCO RANKING (THOUSANDS) SHARE (THOUSANDS) CHILE 3,500 M 2 408 M 2 12% #3 PERU 2,100 M 2 336 M 2 16% #2 COLOMB
Slide 25: Growth from Greenfield Projects and M&A
INVE ST ME NT H IG H LIG H TS PARQUE ARAUCO´S GROWTH HAS COME FROM GREENFIELD PROJECTS AND M&A Chile Peru Colombia TOTAL GLA NEW NEW NEW NEW NEW NEW NEW NEW NEW TOTAL 2006 and GLA GLA GLA GLA GLA GLA GLA GLA GLA GLA before 2007 2008 2009 2010 2011 2012 2013 2014 1Q15 1Q15 CHILE GREENFIELDS 132,198 2
Slide 26: Optionality from Expansions of Existing Shopping Centers
INVE ST ME NT H IG H LIG H TS ONE IMPORTANT AND SOMETIMES FORGOTTEN FEATURE OF OUR BUSINESS IS THE OPTIONALITY RELATED TO EXPANSIONS OF EXISTING SHOPPING CENTERS EXPANSIONS COMPLETED IN THE LAST 5 YEARS HAVE ADDED 78,844 M 2 EXPANSIONS IN PROGRESS MEGAPLAZA NORTE 17,500 m2 PARQUE ARAUCO KENNEDY– 7,4
Slide 27: Future Developments
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Slide 28: Future Developments 2015 and Onward
FUT URE DE VE LO PME NTS 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, WITH APPROX. US$ 400 MILLI
Slide 29: 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 30: 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
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