Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Deutsche Bank Chile Day 2014
31 slides from Parque Arauco's conference presentation, May 2014
Slide 1: Investor Presentation May 2014
INV ESTOR PR ESENTATION M AY 2 0 1 4 |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$MM) 2006 First steps of expansion into Perú (45% stake in Mall Megaplaza in Lima) 3.9x 2006 Chilean expansion begins with Mall Center in Curicó 195 2009 First Neighborhood shopping center in Perú 182 (Mega Express Villa, in Chorrillo
Slide 7: Our Revenues Are Protected Against Inflation
INTRODUCTION TO PARQUE ARAUCO REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED AND 59% OF OUR CONTRACTS HAVE A DURATION OF MORE PRIMARILY FROM FIXED CONTRACTS THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (APR 13 - MAR 14) CONTRACT LENGTH (BASED ON % OF GLA) 1 100 17% Variable Rev
Slide 8: Operations Summary
INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 693,100 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 2 OUTLET MALLS AND 8 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m2) 73,500 % Ownership 43.6 % Owned GLA 32,010 Occupancy 90.5 % PERÚ
Slide 9: Introduction to Parque Arauco: Investment Highlights
I NTRO D U C T I O N TO PARQ U E A R AU C O INVESTMENT HIGHLIGHTS OUR OP E R AT IO NS F UTU R E D EV ELO PMENT S |9
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS 6 1 Outstanding Favorable Financial Performance Macroeconomic with a Conservative Outlook and Attractive Debt Structure Industry Dynamics Leading Ambitious Position in the 5 Investment Plan Andean Region 2 Commercial Real Estate Industry Strong Commercial
Slide 11: Favorable Macroeconomic Outlook and Attractive Industry Dynamics
INVESTMENT HIGHLIGHTS FAVORABLE MACROECONOMIC OUTLOOK AND ATTRACTIVE INDUSTRY DYNAMICS PARQUE ARAUCO IS POSITIONED IN COUNTRIES WITH STRONG MACROECONOMIC PROSPECTS AND UNDERPENETRATED SHOPPING CENTER SECTORS STRONG REAL GDP GROWTH PROJECTIONS… …WITH A STILL RELATIVELY LOW GDP PER CAPITA 2013E (US$)
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 4TH 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$MM) OUR INVESTMENT PIPELINE IS 632 COMPLEMENTED BY OUR LANDBANK 187 108 -19 105 180 289 FROM WHICH FUTURE PROJECTS WILL BE DEVELOPED. Peru 76.5 US$MM 289 238.5 US$MM VALUE OF Chile 206 LANDBANK 76 US$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$MM (1) 195 182 157 51 133 123 43 17% 2009 2010 2011 2012 2013
Slide 17: Conservative Debt Structure
INVESTMENT HIGHLIGHTS CONSERVATIVE DEBT STRUCTURE SOLID FINANCIAL PERFORMANCE AND A CONSERVATIVE DEBT STRUCTURE HAS KEPT FINANCIAL COVENANTS AT COMFORTABLE LEVELS ALLOWING FOR FAVORABLE FINANCING CONDITIONS NET FINANCIAL DEBT US$MM 1 FINANCIAL DEBT AMORTIZATION SCHEDULE US$MM 1 677 622 214 544 498 5
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 PLAZA EL ROBLE - CHILLAN STRIPCENTERS CHILE | 20
Slide 21: Chile Shopping Centers
OUR OPERATIONS CHILE » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy SANTIAGO SANTIAGO Parque Arauco Kennedy 115,200 100 % 115,200 97.0% Quilicura Buenaventura Outlet Arauco Maipú 74,000 100 % 74,000 97.3% Kennedy Paseo Arauco Estación 68,000 83 % 56,440 98.9% 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 244,918 M 2 OF TOTAL GLA | 22
Slide 23: Perú Shopping Centers
OUR OPERATIONS PERÚ » SHOPPING CENTERS MEGAPLAZA NORTE - LIMA MEGAEXPRESS VILLA - LIMA LARCOMAR FASHION CENTER - LIMA MEGAEXPRESS VILLA EL SALVADOR - LIMA LIMA OUTLET CENTER - LIMA MEGAPLAZA CAÑETE MEGAPLAZA - BARRANCA MEGAPLAZA - CHIMBOTE MEGAEXPRESS - CHINCHA PARQUE LAMBRAMANI - AREQUIPA
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 95.8% Mega Express Villa 7,000 50 % 3,500 99.9% Larcomar Fashion Center 26,000 100 % 26,000 96.0% Mega Express Villa 9,000 50 % 4,500 95.3 % El Salvador CHIMBOTE Lima Outlet C
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 87.7 % TOTAL COLOMBIA 73,500 43.6% 32,010 90.5% | 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 GREENFIELD PROJECTS NAME OF THE PROJECT Location Format Estimated Total GLA % Ownership Owned GLA Total Opening Date (m2) (m2) Investment (MMUS$) Mall Outlet Concepción Chile Outlet Mall 1H 2014 6,394 100.0% 6,394 12 Mall Outlet Curauma Chile Outlet Mall 3Q 2014 7,224 100.0% 7,22
Slide 30: Landbank
FUTURE DEVELOPMENTS LANDBANK Name M2 % Ownership Total Cost (MMUS$) Quilicura 2 25,486 100% 3 Buenaventura 95,697 100% 31 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 298,797 100% 76 Parque El Golf 15,000 70% 28.5 Lurin 67,000 100%
Slide 31: Investor Presentation May 2014
INV ESTOR PR ESENTATION M AY 2 0 1 4 | 31