Parque Arauco S.a. · BCS:PARAUCO
Parque Arauco — Investor Day (November 2014)
124 slides from Parque Arauco's investor day presentation, November 2014
Slide 1: Investor Day Lima November 2014
I N V E S TO R D AY LIMA NOVEMBER 2014
Slide 2: Agenda
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
Slide 3: Agenda
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
Slide 4: Welcome Address
WELCOME ADDRESS CLAUDIO CHAMORRO CFO HOLDING PARQUE ARAUCO INVESTOR DAY LIMA 2014
Slide 5: Slide 5
Slide 6: 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 7: Introduction to Parque Arauco
INTRODUCTION TO PARQUE ARAUCO O UR OP E R AT IO NS F U T U R E D EV ELO PM ENT S
Slide 8: 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 9: 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 192 2009 First Neighborhood shopping center in Perú 179 (Mega Express Villa, in Chorrill
Slide 10: 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 (OCT 13 - SEPT 14) CONTRACT LENGTH (BASED ON % OF GLA) 1 100 16% Variable Re
Slide 11: Operations Summary
INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 718,000 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m2) 71,500 % Ownership 43.6 % Owned GLA 31,460 Partners: Grupo Banco
Slide 12: Leading Position in the Andean Region Commercial Real Estate Industry
INTRODUCTION TO PARQUE ARAUCO 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 4TH LARGEST PLAYER IN CHILE, THE 3RD LARGEST PLAYER IN PERU AND ONE OF THE MAIN OPERATORS IN COLOMBIA I
Slide 13: Our Operations
INTROD UC T I O N TO PARQ UE A R AU C O OUR OPERATIONS F U T U R E D EV ELO PM ENT S
Slide 14: 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
Slide 15: 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 16: Chile » Shopping Centers
OUR OPERATIONS CHILE » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy SANTIAGO SANTIAGO Parque Arauco Kennedy 115,000 100% 115,000 97.7% Quilicura Buenaventura Outlet Arauco Maipú 75,000 100% 75,000 96.8% Kennedy Paseo Arauco Estación 69,000 83% 57,270 97.8% Estación Central Arauco Qu
Slide 17: Perú
PERÚ PARQUE ARAUCO ENTERED PERÚ IN 2006 AND IS NOW ONE OF THE TOP SHOPPING CENTER OPERATORS IN THE COUNTRY WITH 252,000 M 2 OF TOTAL GLA
Slide 18: 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 VIAMIX CHORRILLOS PA
Slide 19: Perú » Shopping Centers
OUR OPERATIONS PERÚ » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy LIMA MegaPlaza Norte 107,500 50 % 53,750 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 20: 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
Slide 21: Colombia » Shopping Centers
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS PARQUE ARBOLEDA PARQUE CARACOLÍ
Slide 22: Colombia » Shopping Centers
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS GLA (m2) %Ownership Owned GLA (m2) Occupancy PEREIRA Parque Arboleda 33,000 30.3 % 10,285 92.9 % BUCARAMANGA BUCARAMANGA PEREIRA Parque Caracolí 38,500 55 % 21,175 86.8 % TOTAL COLOMBIA 71,500 43.6% 31,460 89.6%
Slide 23: Future Developments
INTRODUCTION TO PARQUE ARAUCO O UR OP E R AT IO NS F U T U R E D EV ELO PM ENT S
Slide 24: Future Developments
FUTURE DEVELOPMENTS To date, Parque Arauco has announced projects that will add 132,300 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$ 579 million. Parque Arauco has a land bank valued at US$ 226.5 million
Slide 25: Landbank
FUTURE DEVELOPMENTS LANDBANK Name M2 % Ownership Total Cost (MMUS$) Quilicura 2 25,486 100% 3 Buenaventura 70,297 100% 16 Coquimbo 40,000 100% 4 Chicureo 47,614 100% 10 Los Andes 40,000 100% 5 Others in Chile 50,000 100% 23 TOTAL CHILE 273,397 100% 61 Parque El Golf 15,000 70% 28.5 Lurin 67,000 100%
Slide 26: Agenda
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
Slide 27: Third Quarter Results
THIRD QUARTER RESULTS EDUARDO PÉREZ MARCHANT GERENTE DE FINANZAS HOLDING PARQUE ARAUCO INVESTOR DAY LIMA 2014
Slide 28: Financial and Operating Results
FINANCIAL AND OPERATING RESULTS INCOME STATEMENT - CONSOLIDATED CH$ THOUSANDS 3Q14 3Q13 Chg. % 2014 2013 Chg. % Revenues 30,784,238 26,136,196 17.8% 88,685,580 75,295,864 17.8% Cost of Sales (7,304,268) (5,427,593) 34.6% (20,667,518) (15,844,459) 30.4% Gross Profit 23,479,970 20,708,603 13.4% 68,018
Slide 29: Key Performance Indicators
FINANCIAL AND OPERATING RESULTS KEY PERFORMANCE INDICATORS 3Q14 3Q13 Chg. % 2014 2013 Chg. % EBITDA Margin % 68.9% 70.5% -163 67.9% 69.6% -177 Net Income Margin % 40.4% 26.9% 1346 30.5% 35.7% -519 FFO (Ch$ Millions)1 15,941 13,703 16.3% 45,250 41,391 9.3% FFO Margin % 51.8% 52.4% -64 51.0% 55.0% -39
Slide 30: Operating Income
FINANCIAL AND OPERATING RESULTS OPERATING INCOME Revenues for the third quarter of 2014 increased 17.8% year- Consolidated occupancy remained stable at 95.1% in 3Q14. Total over-year to Ch$ 30,784 million. The growth was primarily the tenant sales for the quarter increased by 14.9% to Ch$ 320,611 re
Slide 31: Revenues by Country
FINANCIAL AND OPERATING RESULTS In keeping with the Company’s regional expansion strategy, revenue participation of assets outside of Chile continued to increase in the third quarter. Revenues from Colombia and Peru represented 36% of total revenues, up from 30.5% during the same period in 2013. Dur
Slide 32: EBITDA
FINANCIAL AND OPERATING RESULTS EBITDA The Company reported EBITDA of Ch$ 21,197 million during the third quarter of 2014, a 15.1% increase over 2013. The consolidated EBITDA margin was 68.9%, compared with the previous year’s EBITDA BY COUNTRY 3Q14 margin of 70.48%. The decrease reflects the increa
Slide 33: Non-operating Expenses and Income Taxes
FINANCIAL AND OPERATING RESULTS Net non-operating expenses during the third quarter of 2014 totaled Ch$ 4,125 million, compared to net non-operating expenses of Ch$ 8,703 million in 2013. The reduction was due primarily to a better result in foreign exchange differences due to the depreciation of th
Slide 34: Balance Sheet Review: Assets
BALANCE SHEET REVIEW BALANCE SHEET REVIEW ASSETS Ch$ millions 30.09.2014 31.12.2013 Var. (%) Dif. Current Assets 158,556 117,108 35.4% 41,448 Non Current Assets 1,219,890 1,084,848 12.4% 135,042 Total Assets 1,378,445 1,201,956 14.7% 176,489 Current assets increased to Ch$ 158,556 million from Ch$ 1
Slide 35: Balance Sheet Review: Liabilities and Equity
BALANCE SHEET REVIEW LIABILITIES AND EQUITY Ch$ millions 30.09.2014 31.12.2013 Var. (%) Dif. Current Liabilities 78,383 76,064 3.0% 2,319 Non Current Liabilities 523,689 490,585 6.7% 33,104 Total Liabilities 602,072 566,649 6.3% 35,423 Equity 776,374 635,307 22.2% 141,067 Total Liabilities and Equit
Slide 36: Financial Indicators and Debt
BALANCE SHEET REVIEW FINANCIAL INDICATORS Units 30.09.2014 31.12.2013 Covenant Limit Gross Financial Debt Ch$ million 458,464 441,378 Net Financial Debt Ch$ million 350,209 372,432 Net Financial Debt / EBITDA (12 months) times 4.3 5.0 EBITDA / Financial Expenses (12 months) times 3.4 3.9 > 2.5 Liabi
Slide 37: Cash Flow Review
CASH FLOW REVIEW BALANCE SHEET REVIEW CASH FLOW (CH$ MILLIONS) 30.09.2014 30.09.2013 Var. % Dif. From Operating Activities 36,979 39,223 -6% (2,244) From Investment Activities (80,424) (111,897) -28% 31,473 From Financing Activities 79,585 43,648 82% 35,937 Eff. of var. exchange rate on cash and cas
Slide 38: Main Financial Indicators
MAIN FINANCIAL INDICATORS MAIN FINANCIAL INDICATORS 1 FINANCIAL RATIOS INDICATOR Unit 30.09.2014 30.09.2013 Liquidity Level Current Assets / Current Liabilities times 2.02 1.99 Leverage Ratio Total Liabilities / Equity times 0.78 0.84 Short Term Debt Current Liabilities / Total Liabilities % 13.02 1
Slide 39: Portfolio 2014
Var.% Total PORTFOLIO 2014 Name Total GLA (m2) % Ownership Owned GLA (m2) GLA vs 2013 Parque Arauco Kennedy 115,000 100% 115,000 0% Arauco Maipu 75,000 100% 75,000 1% Arauco Chillán (Plaza El Roble) 31,500 100% 31,500 26% Paseo Arauco Estación 69,000 83% 57,270 1% Arauco San Antonio 28,500 51% 14,53
Slide 40: Property Level Results Nine Months 2014
PROPERTY LEVEL RESULTS NINE MONTHS 2014 Chile in MMCLP/ Perú in MPEN GLA Sales Revenue EBITDA Colombia in MMCOP 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % Parque Arauco Kennedy 115,000 115,200 0% 258,094 242,276 7% 27,099 25,331 7% 24,941 23,393 7% Arauco Maipú 75,000 74,000
Slide 41: Property Level Results Nine Months 2014
PROPERTY LEVEL RESULTS NINE MONTHS 2014 Chile in MMCLP/ Perú in MPEN Occupancy EBITDA Margin Monthly sales per m2 * Monthly revenue per m2* Colombia in MMCOP 9M14 9M13 Var. b.p. 9M14 9M13 Var. b.p. 9M14 9M13 Var. % 9M14 9M13 Var. % Parque Arauco Kennedy 97.7% 98.4% -75 92.0% 92.4% -36 256,029 248,85
Slide 42: Property Level Results Third Quarter 2014
PROPERTY LEVEL RESULTS THIRD QUARTER 2014 Chile in MMCLP/ Perú in MPEN GLA Sales Revenue EBITDA Colombia in MMCOP 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % Parque Arauco Kennedy 115,000 115,200 0% 83,443 82,360 1% 9,201 8,605 7% 8,484 7,979 6% Arauco Maipú 75,000 74,000 1%
Slide 43: Property Level Results Third Quarter 2014
PROPERTY LEVEL RESULTS THIRD QUARTER 2014 Chile in MMCLP/ Perú in MPEN Occupancy EBITDA Margin Monthly sales per m2 * Monthly revenues per m2* Colombia in MMCOP 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % Parque Arauco Kennedy 97.7% 98.4% -75 92.2% 92.7% -51 248,035 252
Slide 44: Highlights by Country
HIGHLIGHTS BY COUNTRY BUCARAMANGA PEREIRA CHIMBOTE BARRANCA LIMA CAÑETE CHINCHA AREQUIPA SANTIAGO SAN ANTONIO CHILLÁN CONCEPCIÓN
Slide 45: Highlights by Country: Chile
HIGHLIGHTS BY COUNTRY CHILE ARAUCO SAN ANTONIO, CHILE During the third quarter of 2014, Parque Arauco opened its tenth strip center in Chile, Strip Center Las Brujas, in La Reina, Santiago. This property adds 3,600m2 to Parque Arauco´s portfolio as the company continues to build its GLA of strip cen
Slide 46: Highlights by Country: Chile
The shopping mall initiated a new platform to communicate with its customers with the residents of Quilicura and its surroundings. New stores offering clothing and beauty launch of Revista Detalle (www.revistadetalle.cl.) The website is a blog that provides supplies also opened, including Americanin
Slide 47: Perú
HIGHLIGHTS BY COUNTRY PERÚ LARCOMAR, LIMA
Slide 48: Highlights by Country: Perú
In Peru, Parque Arauco announced the inclusion of the first strip center into earn points that can be used in the mall and therefore encouraging customer its portfolio, ViaMix Chorrillos. Chorrillos, which has 4,000 m2 of GLA, began loyalty. During the quarter tenant sales increased by 20%, revenues
Slide 49: Colombia
HIGHLIGHTS BY COUNTRY COLOMBIA PARQUE CARACOLÍ, BUCARAMANGA
Slide 50: Highlights by Country: Colombia
In Colombia, in Parque Arboleda, the interior of the office tower mall located in Bucaramanga. The mall showed strong growth with continues to be completed and will soon offer high quality, well tenant sales increasing 29%, revenues increasing 10% and EBITDA equipped space to business looking for co
Slide 51: Consolidated Financial Statements: Balance Sheet
CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEET CH$ THOUSANDS 30.09.2014 31.12.2013 CH$ THOUSANDS 30.09.2014 31.12.2013 ASSETS LIABILITIES Current Assets Current Liabilities Cash and Cash Equivalents 108,255 68,946 Other Current Financial Liabilities 52,704 35,726 Other Current Non-Financial Assets
Slide 52: Cash Flow Statement
CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW STATEMENT CH$ THOUSANDS 30.09.2014 30.09.2013 Var. % Net cash flow from OPERATING activities Receipts from sales of goods and services 137,235,554 112,058,479 22% Payments to suppliers for goods and services (68,390,124) (42,350,581) 61% Payments on behalf
Slide 53: Agenda
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
Slide 54: Parque Arauco Peru Overview and Strategy
PARQUE ARAUCO PERU OVERVIEW AND STRATEGY EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVESTOR DAY LIMA 2014
Slide 55: Introduction to Perú
‣ INTRODUCTION TO PERÚ ‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR ‣ INTRODUCTION TO PARQUE ARAUCO PERÚ
Slide 56: Peru Has a GDP of US$377 Billion and Per Capita GDP of US$12,000
‣ INTRODUCTION TO PERÚ PERU HAS A GDP OF US$377 BILLION AND A PER CAPITA GDP OF US$12,000 PERÚ HAS A LARGE GDP FOR REGIONAL STANDARDS AND A RELATIVELY SMALL PER CAPITA GDP US$ Billion, 2014 (F) US$, 2014 (F) Brazil 3.073 Chile 23.165 Mexico 2.143 Argentina 22.101 Argentina 927 Mexico 17.925 Colombia
Slide 57: Peru Has Grown Importantly but Shows Signs of Deceleration
‣ INTRODUCTION TO PERÚ PERU HAS GROWN IMPORTANTLY BUT SHOWS SIGNS OF DECELERATION PERÚ HAS GROWN IMPORTANTLY IN THE LAST 3 YEARS BUT SHOWS SIGNS OF DECELERATION REAL GDP % CHANGE, AVERAGE 2012-2014 REAL GDP % CHANGE 8,5 Peru 5,1 Ecuador 4,5 6,5 Colombia 4,5 6,0 5,8 Chile 3,9 3,6 Mexico 2,5 Venezuela
Slide 58: Peru Expected to Continue Leading Regional Growth
‣ INTRODUCTION TO PERÚ PERU IS EXPECTED TO CONTINUE TO LEADING THE REGIONAL IN TERMS OF GROWTH PERÚ WILL CONTINUE TO LEAD REGIONAL GROWTH PERÚ GDP GROWTH EXPECTATIONS REAL GDP % CHANGE, AVERAGE 2014-2017 REAL GDP % CHANGE 5,5 5,5 Peru 4,9 5,1 Colombia 4,6 Ecuador 4,5 3,6 Chile 3,4 Mexico 3,4 Brazil
Slide 59: Introduction to the Commercial Real Estate Sector
‣ INTRODUCTION TO PERÚ ‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR ‣ INTRODUCTION TO PARQUE ARAUCO PERÚ
Slide 60: GLA Growth Since 2005 Significant but Recently Slowed
‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR GLA GROWTH SINCE 2005 HAS BEEN SIGNIFICANT BUT HAS RECENTLY SLOWED EVOLUTION OF GLA IN PERU (thousands) NUMBERS OF SHOPPING CENTERS IN PERU 2.244 71 2.002 60 +22% 1.598 +24% 50 1.380 45 1.211 38 964 28 785 24 489 601 19 382 14 10 2005 2006 2007 200
Slide 61: There Is Opportunity for Growth in the Sector
‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR THERE IS OPPORTUNITY FOR GROWTH IN THE SECTOR GLA (M2) PER 1000 INHABITANTS % OF RETAIL SALES IN SHOPPING CENTERS 2013 2013 USA 2.200 Canada 65,0 Canada 1.369 USA 55,0 Australia 940 Australia 51,0 Chile 197 Chile 25,0 Mexico 134 Peru 24,0 Colombia
Slide 62: Private Consumption and Retail Sales Expected to Grow
‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR PRIVATE CONSUMPTION AND RETAIL SALES ARE EXPECTED TO GROW GDP (BILLION US$) AND GDP CHANGE (%) TOTAL, PRIVATE AND PUBLIC INVESTMENT GROWTH (%) 39% 500 10 30% 433 13% 12% 11% 8% 11% 403 0% 400 358 377 8 TOTAL 333 309 24% 26% 300 284 6 -23% 16% 254 2
Slide 63: Introduction to Parque Arauco Perú
‣ INTRODUCTION TO PERÚ ‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR ‣ INTRODUCTION TO PARQUE ARAUCO PERÚ
Slide 64: Market Conditions in 2006
‣ INTRODUCIÓN TO PARQUE ARAUCO PERÚ PARQUE ARAUCO ENTERED PERU IN 2006 AND FOUND A COMMERCIAL REAL ESTATE SECTOR POORLY PENETRATED OUTSIDE LIMA AND WITH A LOW VARIETY OF FORMATS MARKET CONDITIONS ON 2006 HIGH EXPECTATIONS OF GDP GROWTH, CONSUMPTION GROWTH AND RETAIL SALES GROWTH LOW COMMERCIAL R
Slide 65: Rapid Expansion Through Greenfields and Acquisitions by Partnerships
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ THE COMPANY UNDERSTOOD THE HIGH POTENTIAL OF THE COUNTRY/SECTOR AND EXPANDED RAPIDLY THROUGH GREENFIELDS AND ACQUISITIONS BY WAY OF PARTNERSHIPS 15 GLA (m2) # of operations 300.000 10 11 Acquisitions 10 200.000 5 6 4 Greenfields 5 1 1 1 2 100.000 0 0 2006 2007 20
Slide 66: Shopping Centers in the Most Important Regions in Peru
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ WE HAVE SHOPPING CENTERS IN THE MOST IMPORTANT REGIONS IN PERU Regional Neighborhood Outlet Strip center Megaplaza Chimbote Megaplaza Barranca Format Regional Shopping Center Format Neighborhood Shopping Center GLA (m²) 9,500 GLA (m²) 9,500 Partner Grupo Wiese (5
Slide 67: We Participate in Four Different Formats
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ WE PARTICIPATE IN FOUR DIFFERENT FORMATS REGIONAL SHOPPING CENTERS NEIGHBORHOOD SHOPPING CENTERS 4 Regional Shopping Centers 5 Neighborhood Shopping Centers 191,500 m² 49,000 m² STRIPCENTERS OUTLETS 1 Strip Center 1 Outlet Mall 7,500 m² 4,000 m²
Slide 68: Independence Allows Right Format and Commercial Mix for Each Segment
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ BEING INDEPENDENT ALLOWS US TO PROVIDE THE RIGHT FORMAT WITH THE RIGHT COMMERCIAL MIX FOR EACH SPECIFIC GEOGRAPHY AND SEGMENT EXAMPLE #1: REGIONAL SHOPPING CENTER IN A HIGH INCOME/LARGE GEOGRAPHIC AREA LARCOMAR Lima population: 26,000 m2 of GLA 9.500.000 resident
Slide 69: Future Growth
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ FUTURE GROWTH WE HAVE ANNOUNCED PLANS TO INVEST WE CURRENTLY HOLD AN IMPORTANT US$ 210MM IN PERU LANDBANK OF MORE THAN 250,000 M2 210 15.000 10.085 2.960 264.790 72 169.745 67.000 138 Lurin La Molina Colonial Terrenos IPSA Parque El Golf Total Inversión IPSA Inve
Slide 70: Agenda
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - PARQUE LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
Slide 71: Case Study: Parque Lambramani
CASE STUDY PARQUE LAMBRAMANI EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVESTOR DAY LIMA 2014
Slide 72: In 2008 Arequipa Had Strong GDP Growth and Low Shopping Center Penetration
‣ LAMBRAMANI CASE STUDY IN 2008, AREQUIPA WAS A CITY WITH STRONG GDP GROWTH AND A LOW PENETRATION OF SHOPPING CENTERS AREQUIPA HAD STRONG ECONOMIC PERSPECTIVES AND A LOW PENETRATION OF SHOPPING CENTERS Existing commercial real estate in 2008: - 1 Plaza Vea - 1 Falabella - 1 Maestro Home Center Arequ
Slide 73: In 2009 Parque Arauco Began Developing a Shopping Center in Arequipa
‣ LAMBRAMANI CASE STUDY IN 2009, PARQUE ARAUCO BEGAN DEVELOPING A SHOPPING CENTER IN AREQUIPA
Slide 74: Five Regional Shopping Centers Opened Since 2010
‣ LAMBRAMANI CASE STUDY FIVE REGIONAL SHOPPING CENTERS HAVE OPENED SINCE 2010 Arequipa Shopping Parque Lambramani: Center 30.000 m2 of GLA Opened in 2010 Real Plaza Arequipa Real Plaza Arequipa: Open Plaza Arequipa 25.000 m2 of GLA Opened in 2010 Open Plaza Arequipa 42,000 m2 of GLA Opened in 2010 P
Slide 75: Arequipa Has Highest Commercial Real Estate Penetration Excluding Lima
‣ LAMBRAMANI CASE STUDY EXCLUDING LIMA, AREQUIPA HAS THE HIGHEST COMMERCIAL REAL ESTATE PENETRATION IN PERU M2 GLA GLA/1000 HAB. Arequipa 176 Arequipa 141 Piura 143 Ucayalí 135 La libertad 138 Ica 131 Ica 100 Piura 79 Lambayeque 64 La libertad 77 Ucayalí 64 Lambayeque 52 Cajamarca 62 Lima provinces
Slide 76: We Created a Plan to Face the High Competition
‣ LAMBRAMANI CASE STUDY WE CREATED A PLAN TO FACE THE HIGH COMPETITION TAKING INTO CONSIDERATION THE SCENARIO OF …WE CREATED A PLAN TO BRING MORE HIGH COMPETITION… CLIENTS TO OUR SHOPPING CENTER 1.1 Concentration of Anchor Stores 2.2 Commercial and Marketing Plan - Purchase awards - Events - Media c
Slide 77: Opportunity to Improve the Mix of Anchor Stores
‣ LAMBRAMANI CASE STUDY 1 WE FOUND AN OPPORTUNITY to IMPROVE THE MIX OF ANCHOR STORES IN LAMBRAMANI WE UNDERSTOOD THAT GIVEN THE COMPETITIVE WE CHANGED THE TWO LEVEL WONG SCENARIO A WONG SUPERMARKET WAS NOT THE SUPERMARKET INTO A METRO BEST ANCHOR STORE FOR LAMBRAMANI SUPERMARKET ON THE FIRST FLOOR…
Slide 78: Commercial and Marketing Plan: Purchase Awards
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: PURCHASE AWARDS AUTOLIQUIDABLE DE AUTOLIQUIDABLE DE AUTOLIQUIDABLE DE VAJILLA MONEDEROS RENZO COSTA TARJETEROS RENZO COSTA • DURATION: March 15 - 31 • DURATION: April 28 – May 9 • DURATION: May 10-30
Slide 79: Commercial and Marketing Plan: Purchase Awards
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: PURCHASE AWARDS CELEBRAMOS TU PRIMERA AUTOLIQUIDABLE DE COMPRA CON BONUS AUTOLIQUIDABLE DEL CINE ANIS NAJAR • DURATION: Ongoing • DURATION: August 1-15 • DURATION: September 5 - October 15
Slide 80: Commercial and Marketing Plan: February Events
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: FEBRUARY EVENTS Peruvian Pisco Day, pisco tasting with “El Gaucho” (barbeque restaurant). Roxette concert for Valentine´s Day. Make-up clases with Montalvo beauty salon. “GO Icarus” concerts every Friday.
Slide 81: Commercial and Marketing Plan: March Events
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: MARCH EVENTS Women´s Day. Happiness Day Andrés Vásquez concert every Friday. Musical performance by “Las Cajoneritas” in the plaza.
Slide 82: Commercial and Marketing Plan: June Events
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: JUNE EVENTS Runway show with Esika, attended by Maju Mantilla, ex Miss World. Inauguration of art work by Toulouse Lautrec. Barra Móvil kickoff with Cerveza Arequipeña. Canchita kickoff with Diario DEPOR.
Slide 83: Commercial and Marketing Plan: September Events
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: SEPTEMBER EVENTS Casting for Perú Tiene Talento. Shopping Day. Gianmarco tribute with Joel Cuba. Ecológica marathon
Slide 84: Commercial and Marketing Plan: Night Sales
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: NIGHT SALES
Slide 85: Commercial and Marketing Plan: Tenant Support
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: TENANT SUPPORT Book Exhibition: support for Zeta Bookstore
Slide 86: Commercial and Marketing Plan: Tenant Support
‣ LAMBRAMANI CASE STUDY 2 COMMERCIAL AND MARKETING PLAN: TENANT SUPPORT Fashion Show: support for several womens apparel brands such as Emporium, Roox, Dunkervolk, Bughi, Squeeze, Exit, Scrombro, Paris, Estilos, Adidas, Merrel, Marathon, Ecco, Milano Bags, Pasarela, Bata ,Renzo Costa, Nike, and othe
Slide 87: Lambramani Sales Have Increased Gradually in Recent Years
‣ LAMBRAMANI CASE STUDY 3 LAMBRAMANI SALES HAVE INCREASED GRADUALLY IN THE LAST YEARS TENANT SALES MMPEN +13% 146 133 +10% 129 2012 2013 2014* *October 2013 - September 2014
Slide 88: Case Study: Larcomar
CASE STUDY LARCOMAR EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVESTOR DAY LIMA 2014
Slide 89: Larcomar Was Built in 1998 by Graña & Montero Holding
‣ LARCOMAR CASE STUDY LARCOMAR WAS BUILT IN 1998 BY GRAÑA & MONTERO HOLDING ABOUT LARCOMAR LARCOMAR DURING THE NINETIES Larcomar was built on a cliff overlooking the Pacific Ocean in the Miraflores sector of Lima, one of the best neighborhoods in the city, made up primarily of wealthy families. Mira
Slide 90: Parque Arauco Acquired Larcomar in 2009
‣ LARCOMAR CASE STUDY PARQUE ARAUCO ACQUIRED LARCOMAR IN 2009 ABOUT THE ACQUISITION LARCOMAR TODAY As Parque Arauco was seeking potential greenfield projects to develop it was also actively monitoring the market for potential acquisitions. At that time Larcomar was positioned as a shopping center an
Slide 91: Plan to Renovate and Improve the Emblematic Shopping Center
‣ LARCOMAR CASE STUDY A PLAN WAS DEVELOPED TO RENOVATE AND IMPROVE THE EMBLEMATIC SHOPPING CENTER LARCOMAR WAS DEPRECIATED AND HAD A POOR A PLAN WAS CREATED TO REPOSITION TENANT MIX TARGETED MAINLY AT TOURISTS LARCOMAR One of the major potential points for improvement in 1.1 Face Lifting Larcomar wa
Slide 92: Facelifting: Before and After
‣ LARCOMAR CASE STUDY 1 FACELIFTING: BEFORE AND AFTER
Slide 93: Facelifting: Before and After
‣ LARCOMAR CASE STUDY 1 FACELIFTING: BEFORE AND AFTER
Slide 94: Face Lifting: Larcomar Today
‣ LARCOMAR CASE STUDY 1 FACE LIFTING: LARCOMAR TODAY
Slide 95: Change in the Commercial Mix: New Brands
‣ LARCOMAR CASE STUDY 2 CHANGE IN THE COMMERCIAL MIX: NEW BRANDS
Slide 96: Change in the Commercial Mix: New Restaurants
‣ LARCOMAR CASE STUDY 2 CHANGE IN THE COMMERCIAL MIX: NEW RESTAURANTS
Slide 97: Change in the Commercial Mix: Entertainment Alternatives
‣ LARCOMAR CASE STUDY 2 CHANGE IN THE COMMERCIAL MIX: ENTERTAINMENT ALTERNATIVES
Slide 98: Repositioning: Paper Media Summer 2014
‣ LARCOMAR CASE STUDY 3 REPOSITIONING: PAPER MEDIA SUMMER 2014
Slide 99: Repositioning: Paper Media Mother's Day 2014
‣ LARCOMAR CASE STUDY 3 REPOSITIONING: PAPER MEDIA MOTHER’S DAY 2014
Slide 100: Repositioning: Newsletter Summer 2014
‣ LARCOMAR CASE STUDY 3 REPOSITIONING: NEWSLETTER SUMMER 2014
Slide 101: Repositioning: Newsletter Mother's Day 2014
‣ LARCOMAR CASE STUDY 3 REPOSITIONING: NEWSLETTER MOTHER’S DAY 2014
Slide 102: Repositioning: Online Media
‣ LARCOMAR CASE STUDY 3 REPOSITIONING: ONLINE MEDIA
Slide 103: Repositioning Plan Was a Success with Positive Impact on Results
‣ LARCOMAR CASE STUDY THE REPOSITIONING PLAN WAS A SUCCESS AND HAD A POSITIVE IMPACT ON RESULTS EBITDA INCREASED MORE THAN 4 MILLION PEN IN 2014 +24% 22,5 19,1 17,9 18,1 17,1 2010 2011 2012 2013 2014* *October 2013 – September 2014
Slide 104: Future Plans: H&M Will Enter Larcomar in 2016
‣ LARCOMAR STUDY CASE FUTURE PLANS: H&M WILL ENTER LARCOMAR IN 2016
Slide 105: Case Study: InOutlet Faucett
CASE STUDY INOUTLET FAUCETT EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVESTOR DAY LIMA 2014
Slide 106: In 2008 Parque Arauco Entered Outlet Format Acquiring Buenaventura Premium Outlet
‣ INOUTLET FAUCETT CASE STUDY IN 2008 PARQUE ARAUCO ENTERED THE OUTLET FORMAT BY ACQUIRING BUENAVENTURA PREMIUM OUTLET IN CHILE ABOUT THE ACQUISITION BUENAVENTURA TODAY
Slide 107: 2012 Partnership with Grupo Los Portales Created SCP
‣ INOUTLET FAUCETT CASE STUDY IN 2012, PARQUE ARAUCO SIGNED A PARTNERSHIP WITH GRUPO LOS PORTALES AND CREATED SCP ABOUT GRUPO LOS PORTALES ABOUT STRIP CENTERS DEL PERU 51% 51% 49%
Slide 108: InOutlet Faucett Contributed in 2013 to Los Portales Partnership
‣ INOUTLET FAUCETT CASE STUDY INOUTLET FAUCETT (AT THAT TIME “LIMA OUTLET CENTER”) WAS CONTRIBUTED IN 2013 AS PART OF THE PARTNERSHIP WITH GRUPO LOS PORTALES INOUTLET (FORMER “LIMA OUTLET CENTER”) IN 2013 GREAT LOCATION AT 100M FROM THE AIRPORT
Slide 109: Plan to Renovate and Improve the Outlet Mall
‣ INOUTLET FAUCETT CASE STUDY A PLAN WAS MADE TO RENOVATE AND IMPROVE THE OUTLET MALL LIMA OUTLET CENTER WAS DEPRECIATED AND HAD WE CREATED A PLAN TO REPOSITION A POOR TENANT MIX LIMA OUTLET CENTER Parque Arauco saw an opportunity to improve the 1.1 Face Lifting profitability of the shopping mall by
Slide 110: Facelifting: Before and After
‣ INOUTLET FAUCETT CASE STUDY 1 FACELIFTING: BEFORE AND AFTER
Slide 111: Facelifting: Pedestrian Footpath
‣ INOUTLET FAUCETT CASE STUDY 1 FACELIFTING: PEDESTRIAN FOOTPATH
Slide 112: Facelifting: Underground Parking Lot
‣ INOUTLET FAUCETT CASE STUDY 1 FACELIFTING: UNDERGROUND PARKING LOT
Slide 113: Facelifting: Expansion of 2,000 m2 of GLA
‣ INOUTLET FAUCETT CASE STUDY 1 FACELIFTING: EXPANSION OF 2,000 M2 OF GLA
Slide 114: Commercial Mix: New Brands
‣ INOUTLET FAUCETT CASE STUDY 2 COMMERCIAL MIX: NEW BRANDS
Slide 115: Commercial Mix: New Brands
‣ INOUTLET FAUCETT CASE STUDY 2 COMMERCIAL MIX: NEW BRANDS
Slide 116: Commercial Mix: First Floor Layout
‣ INOUTLET FAUCETT CASE STUDY 2 COMMERCIAL MIX: FIRST FLOOR LAYOUT
Slide 117: Commercial Mix: Second Floor Layout
‣ INOUTLET FAUCETT CASE STUDY 2 COMMERCIAL MIX: SECOND FLOOR LAYOUT
Slide 118: Repositioning: New Brand
‣ INOUTLET FAUCETT CASE STUDY 3 REPOSITIONING: NEW BRAND (FROM “LIMA OUTLET CENTER” TO “INOUTLET FAUCETT”)
Slide 119: Repositioning: Advertising Display Panels
‣ INOUTLET FAUCETT CASE STUDY 3 REPOSITIONING: ADVERTISING DISPLAY PANELS
Slide 120: Repositioning: Radio Campaign
‣ INOUTLET FAUCETT CASE STUDY 3 REPOSITIONING: RADIO CAMPAIGN
Slide 121: Repositioning: Online Campaign
‣ INOUTLET FAUCETT CASE STUDY 3 REPOSITIONING: ONLINE CAMPAIGN
Slide 122: Repositioning: Online Campaign
‣ INOUTLET FAUCETT CASE STUDY 3 REPOSITIONING: ONLINE CAMPAIGN
Slide 123: Agenda
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT - NEIGHBORHOOD SHOPPING CENTERS
Slide 124: Investor Day Lima November 2014
I N V E S TO R D AY LIMA NOVEMBER 2014