Slide 1: Investor Presentation August 2012
Investor Presentation August 2012 years Parque Arauco S.A. www.parauco.com
Slide 2: 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 information cont
Slide 3: Contents
Contents > Investment considerations > Projects Summary > Outlook of Parque Arauco > Projects under construction
Slide 4: Contents
Contents > Investment considerations > Projects Summary > Outlook of Parque Arauco > Projects under construction
Slide 5: Investment Considerations
Investment Considerations 5
Slide 6: Unique investment vehicle in the region
I) Unique investment vehicle in the region General background1 Shareholder structure3 Summary table 2011 Market Cap: 1,340 (US$ MM) Others 14.5% Number of Shares: 702.7 MM Total revenues (US$ MM) 173 Insurance Free Float: 53.3% Companies 0.1% EBITDA (US$ MM) 122 Mutual Funds Controller EBITDA margin
Slide 7: Latam business and diversification
II) Latam business and diversification Country Format GLA 2Q 2012 Regional Malls: COLOMBIA Parque Arboleda 34.000 Regional Malls: PERÚ MegaPlaza 83.000 Larcomar 26.000 Parque Lambramani 28.000 MegaPlaza Chimbote 28.000 MegaStripcenters Mega Chorrillos 7.000 Mega Villa El Salvador 9.000 Regional Mall
Slide 8: History of value creation and good performance
III) History of value creation and good performance Sustained Growth1 Revenues evolution1 EBITDA (US$ MM) Total Revenues (US$ MM ) CAGR 24% 200 CAGR 29% 120 173 150 100 146 135 121 80 100 60 122 78 99 104 50 40 86 49 55 60 20 42 45 0 2005 2006 2007 2008 2009 2010 2011 0 (1) Revenues reclassified in
Slide 9: Aggressive investment plan in short term
IV) Aggressive investment plan in short term GLA 1Q 2012 GLA 4Q 2012 Regional Malls: COLOMBIA Parque Arboleda 34.000 34.000 Bucaramanga Regional Malls: PERÚ Megaplaza 83.000 83.000 Larcomar 26.000 26.000 Parque Lambramani 28.000 28.000 Megaplaza Chimbote 28.000 MegaStripcenters Mega Chorrillos 7.000
Slide 10: High occupancy rates
V) High occupancy rates Parque Arauco’s Shopping Centers Shopping Center Total GLA Stake (%) Own GLA Occupancy Parque Arauco Kennedy 108,000 100.0% 108,000 99.7% Arauco Maipú 64,000 100.0% 64,000 96.2% Plaza El Roble 25,000 100.0% 25,000 98.0% Paseo Arauco Estación 68,000 83.0% 56,440 98.5% Arauco S
Slide 11: Stable revenues, contracts and visitors
VI) Stable Revenues, contracts and visitors Stable Revenues Structure Contracts Expiration Revenues Composition (Fixed/Variable) (%, 2011) (Based in % of GLA ) 15% 8% <= 1 year 2 to 3 years 6% 3 to 4 years 70% >= 4 years Source: Parque Arauco GLA & Rental Revenues Composition Count of Visitor (Total
Slide 12: Solid financial situation
VII) Solid financial situation Debt repayment schedule Net financial debt 736 Financial debt amortization (US$ MM ) (US$ MM) 658 Cash: 248 209 590 579 181 538 514 531 531 489 409 70 68 74 72 48 6 12 0-3 3-6 6-12 1-2 2-3 3-4 4-5 5-10 10-20 months months months years years years years years years Mar‐
Slide 13: Markets with high growth potential
VIII) Markets with high growth potential Positive prospects for commerce Controlled inflation Shopping Centers market share1 Real private consumption growth (%, 2011-2012E) (%, 2012e) (%, 2011 ) 9.4% 3.6% 26.0% 6.2% 21.0% 5.3% 2.5% 2.5% 12.0% Chile Colo Perú Chile Colo Perú Chile Colo Perú CHILE COL
Slide 14: Markets with high growth potential: penetration
VIII) Markets with high growth potential Commerce Sales, Consumer Confidence & Loans Penetration in department stores, supermarkets Variation in 12 months (%,) and home improvement stores by country in LATAM Consumer Loans m2 for 1,000 inhab and GDP per capita (USD) Consumer Confidence (right axis)
Slide 15: Powerful Landbank
IX) Powerfull Landbank 106 mm$USD, 60 ha available, 174 $USD / m2 on average Colombia Parque Arauco owns a strategic land BARRANQUILLA bank that ensures it’s future growth Cost (US$ MM) 8 Surface (m² ) 75,000 BOGOTÁ Cost (US$ MM) 33 Peru Surface (m² ) 34,000 PARQUE EL GOLF Cost (US$ MM) 8 BUCARAMANG
Slide 16: Powerful Landbank: land in current investment plan
IX) Powerfull Landbank 106 mm$USD, 60 ha available, 174 $USD / m2 on average Colombia Parque Arauco owns a strategic land BARRANQUILLA bank that ensures it’s future growth Cost (US$ MM) 8 Surface (m² ) 75,000 BOGOTÁ Cost (US$ MM) 33 Peru Surface (m² ) 34,000 PARQUE EL GOLF Cost (US$ MM) 8 BUCARAMA
Slide 17: Contents
Contents > Investment considerations > Projects Summary > Outlook of Parque Arauco > Projects under construction
Slide 18: Summary of current Investment Plan
> Summary of current Investment Plan PIPELINE PARQUE ARAUCO 2012 - 2013 MM$USD Total % of TOTAL Project Name Country Status Investment Stake GLA Villa el Salvador Perú Opened in april 2012 50.0% 9,000 11 Chimbote Perú Opened in april 2012 33.5% 28,000 26 Buenaventura Outlet Chile Under Due Diligence
Slide 19: Contents
Contents > Investment considerations > Projects Summary > Outlook of Parque Arauco > Projects under construction
Slide 20: Outlook 2012
> Outlook 2012 Leasable area growth Total GLA (m²) 11% 800,000 673,000 604,000 600,000 585,000 400,000 353,000 200,000 66% 0 2007* 2010* 2011 2012e CHILE PERU COLOMBIA EBITDA Outlook EBITDA (mm $Ch) 75,000 103% 67,350‐69,200 61,227 60,000 10% ‐ 13% 52,062 45,000 18% 30,112 30,000 15,000 *In 2010 Par
Slide 21: New GLA for 2013
New GLA for 2013 GLA 1Q 2012 GLA 2Q 2013 COLOMBIA Regional Malls: 34,000 Parque Arboleda 34,000 Bucaramanga 30,000 Regional Malls: PERÚ Megaplaza 83,000 83,000 Larcomar 26,000 26,000 Parque Lambramani 28,000 28,000 Megaplaza Chimbote 28,000 MegaStripcenters Villa Chorrillos 7,000 7,000 Villa en Salv
Slide 22: Contents
Contents > Investment considerations > Projects Summary > Outlook of Parque Arauco > Projects under construction
Slide 23: Arauco Quilicura, Santiago, Chile
> Arauco Quilicura. Santiago, Chile Main stores and attractions Department stores Home improvement (already opened) Food Court Restaurants Entertainment Cinema Under construction General description Total GLA: 33,000 m2 E. Total Investment1: US$ 50 million Opening date: 2013 Steady EBITDA : US$ 5 mi
Slide 24: Agreement to buy an operating Outlet mall in Santiago
> Agreement to buy an operating Outlet mall in Santiago General description Total GLA: 20,000 m2 Total Land: 40,000 m2 E. Total Investment: US$ 32 million PASA stake: 100% Expected EBITDA : US$ 4,7 million in 12 months1 Operating asset Main stores and attractions 42 small stores Food Court 18 wareho
Slide 25: 12,500 m2 additional GLA in Plaza el Roble
> 12,500 m2 additional GLA in Plaza el Roble - Chile Main stores and attractions New Department store: Hites Expansions in anchor stores More Fashions small stores Better Food Court New Entertainment Renew Cinema Operating asset General description Addition GLA: 12,500 m2 E. Total Investment1: US$ 2
Slide 26: Expansion Mall Arauco Maipú
> Expansion Mall Arauco Maipú - Chile Mall Arauco Maipú Project: Falabella in MAM Total GLA: 14.000 m2 E. Total Investment1: US$ 15 million Opening Date: 1Q 2013 Under construction Current Status As of July 2012, construction of the fourth stage of expansion is 67% complete. 26
Slide 27: Expansion Parque Arauco Kennedy
> Expansion Parque Arauco Kennedy - Chile Parque Arauco Kennedy Project: Boulevard IV Total additional GLA: 5.000 m2 E. Total Investment1: US$ 25 million Opening Date: 1Q 2013 Under construction Main Features The new area will consist of a “Luxury District”, entertainment, restaurants, and high end
Slide 28: Expansion Marina Arauco
> Expansion Marina Arauco - Chile Marina Arauco Project: Expansion, new stores Total GLA: 30.000 m2 E. Total Investment: US$ 60 million Opening Date: 2H 2014 Under construction Main Features The new area will consist of a Supermarket, small stores, services areas and entertainment 28
Slide 29: Mega Express Chincha, Peru
> Mega Express Chincha. Chincha, Perú General description Total GLA: 7,500 m2 E. Total Investment1: US$ 10 million Opening date: 1Q 2013 Steady EBITDA : US$ 1 million Under construction Key Features •Neighborhood Shopping Center •Joint venture with partners in Peru: Wiese Family •Supermarket, anchor
Slide 30: Bucaramanga, Colombia
> Bucaramanga. Bucaramanga, Colombia Main stores and attractions Department stores Small stores Food Court Restaurants Entertainment Cinema Current Status 64% complete Under construction General description Total GLA: 30,000 m2 E. Total Investment1: US$ 100 million Opening date: 2013 Steady EBITDA :
Slide 31: Slide 31
Slide 32: Parque Arauco S.A.
Investor Presentation August 2012 years Parque Arauco S.A. www.parauco.com