INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION AUGUST

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3 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 contained herein. The Company expressly disclaims any liability based on such information, errors therein or omissions therefrom. This presentation includes certain statements, estimates and forecasts provided by the Company with respect to it s anticipated future performance and involves significant elements or subjective judgment and analysis that may or may not prove to be accurate or correct. There can be no assurance that these statements, estimates and forecasts will be attained and actual outcomes and results may differ materially from what is estimated or forecast herein. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not purport to be all - inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct their own independent investigation and analysis of the Company. Interested parties can only rely on the result of their own investigation and the representations and warranties made in any definitive agreement that may be executed.

4 INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS 4

5 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 Chile, with operations in Perú and Colombia. Indicator / Country CHILE PERÚ COLOMBIA Total GLA (m 2 ) 1 394, ,118 73,500 Owned GLA 362, ,706 32,010 Occupancy 96.8% 96.0% 91.5 % Revenues LTM 2 (US$MM) # of Operations Perú 34.6% TOTAL GLA 1 REVENUES LTM 2 Total 715,154 m 2 Colombia 10.3% Chile 55.2% Perú 24.1% Total 210 US$ MM Colombia 8.2% Chile 67.6% (1) Marina Arauco not included (2) Average Exchange Rate 2013: US$ 1 =CLP 553; LTM= Jul Jun. 14 (1) Marina Arauco not included (2) Average Exchange Rate 2013: US$ 1 =CLP 553; LTM = Jul Jun. 14 SHAREHOLDER STRUCTURE (JUNE 2014) OPERATIONAL METRICS BY FORMAT Investment Funds 26.4% Mutual Funds 2.1% Insurance Companies 0.3% Others 6.2% TOTAL GLA 1 REVENUES LTM 2 Regional 86.6% Others 5.4% Neighborhood 3.1% Brokers 22.1% Pension Funds 8.1% Market Cap 1,597 US$MM Controlling Group 26.0% Abumohor Family 2.7% Said Yarur Family 6.1% Neighborhood 6.9% Total Total 715,154 m US$ MM Others 6.5% (1) Marina Arauco not included (2) Average Exchange Rate 2013: US$ 1 =CLP 553; LTM= Jul 13 - Jun. 14 Others includes strip centers and outlet malls. Regional 91.5% 5

6 INTRODUCTION TO PARQUE ARAUCO SUCCESSFUL GROWTH STORY REVENUES (US$MM) 3.9x 2006 First steps of expansion into Perú (45% stake in Megaplaza Norte in Lima) 2006 Chilean expansion begins with Mall Center in Curicó CAGR 16.1% 2009 First Neighborhood shopping center in Perú (Mega Express Villa, in Chorrillos, Lima) 2010 Acquisition of Larcomar mall in Miraflores, Lima 2010 Inauguration of first mall in Colombia (Parque Arboleda in Pereira) 2011 First capital increase: US$168 mm Parque Arauco s 30th anniversary, marked by further expansion in Chile, Perú & Colombia 2014 Capital increase for US$182 mm GLA M 2 EBITDA US$MM NET INCOME US$MM 5.3x 4.2x 6.5x 693, , Source: Parque Arauco SVS. Exchange Rate: US$ 1 = CLP in Chilean GAAP, in IFRS. Marina Arauco not included. 6

7 INTRODUCTION TO PARQUE ARAUCO REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED PRIMARILY FROM FIXED CONTRACTS AND 64% OF OUR CONTRACTS HAVE A DURATION OF MORE THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (JUL 13 - JUN 14) CONTRACT LENGTH (BASED ON % OF GLA) % Variable Revenues % Fixed Revenues < 2 years 2-3 years 3-4 years > 4 years Total OUR REVENUES ARE PROTECTED AGAINST INFLATION 1. As of June

8 INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 715,154 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 9 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m 2 ) 73,500 % Ownership 43.6 % Owned GLA 32,010 Partners: Grupo Bancolombia in all projects (45%) Familia Merheg in Parque Arboleda (45%) CHILE GLA (m 2 ) 394,536 % Ownership 91.8 % Owned GLA 362,307 Partners: Empresas de Ferrocarriles del Estado in Paseo Arauco Estación (17%) Aurus Renta Inmobiliaria Fondo de Inversión in all Arauco Express projects (49%) NYK, S.A. in Arauco San Antonio (20%) Inversiones Doña Olga S.A. in Arauco San Antonio (29%) Gestora de Patrimonios S.A. in Arauco Express Ciudad Empresarial (20%) PERÚ GLA (m 2 ) 247,118 % Ownership 59.4% Owned GLA 146,706 Partners: Grupo Wiese in all Megaplaza formats (50%) Los Portales S.A. in all S.C.P. projects (49%) Inversiones Centenario, S.A.A. in Parque el Golf project (50%) 8

9 INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS 9

10 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS PARQUE ARAUCO IS THE RIGHT COMPANY IN THE RIGHT INDUSTRY IN THE RIGHT COUNTRIES 6 1 Outstanding Financial Performance with a Conservative Debt Structure Favorable Macroeconomic Outlook and Attractive Industry Dynamics 5 Ambitious Investment Plan Leading Position in the Andean Region Commercial Real Estate Industry 2 Strong Commercial Relationships Differentiated Business Model

11 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 2014E (US$) Brazil Canada U.S.A. Australia México Chile Colombia Perú e (%) 2015e (%) Australia U.S.A. Canada Chile México Brazil Colombia Perú 17,048 11,687 10,773 8,150 7,019 54,609 53,118 62,127 GDP per capita 2014e Source: Bloomberg Concensus as of July 2014 Source: IMF as of October Based on PPP UNDERPENETRATED SHOPPING CENTER SECTORS IN CHILE, PERÚ AND COLOMBIA VS. DEVELOPED COUNTRIES U.S.A. 2,200 Canada 65% Canada Australia 940 1,360 GLA per 1,000 inhabitants U.S.A. Australia 51% 55% Chile 197 Chile 25% México 134 Perú 24% Colombia Perú México Brazil 24% 20% % of retail sales in shopping centers (2013) Brazil 64 Colombia 12% Source: International Council of Shopping Centers (June 2014, November 2013 for Chile, Colombia, and Perú) Source: International Council of Shopping Centers (June 2014, November 2013 for Chile, Colombia and Perú) 11

12 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 3RD LARGEST PLAYER IN PERU AND ONE OF THE MAIN OPERATORS IN COLOMBIA IN TERMS OF GLA Shopping Centers / Country CHILE PERÚ COLOMBIA Total GLA GLA 394,536 m 2 247,118 m 2 73,500 m 2 715,154 m 2 Market Share 12 % 12 % 2 % 8 % Ranking #3 #3 (n.a.) (n.a.) PARQUE ARAUCO IS THE ONLY COMPANY IN THE ANDEAN REGION FOCUSED ON RETAIL REAL ESTATE Parque Arauco 85% 15% Revenues from Real Estate Chilean Company 1 Chilean Company 2 Peruvian Company 1 Peruvian Company 2 4.9% 44% 30% 14% 7% 2% 12% 9% 74% 3% 4% 64% 34% 11,687 34% 66% Revenues from Home Improvement Revenues from Department Stores Revenues from Supermarkets Revenues from Financial Operations Revenues from Other Market Share Source: ISCS.as of November 2013; Revenue Source: 2013 Company Financial Statements 12

13 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 Performing Andean Region Prime Location 4 IMPORTANT INTANGIBLE ASSETS Continuous Improvement in Shopping Experience Client Culture Strong Relationship with Retailers Experienced Team Commitment of Controlling Shareholders Multiformat and Coverage of Different Socio-Economic Segments Lean Construction Taylor made Layouts and Designs 13

14 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 COLOMBIA PERÚ CHILE

15 INVESTMENT HIGHLIGHTS AMBITIOUS INVESTMENT PLAN INVESTMENT TIMELINE (US$MM) OUR INVESTMENT PIPELINE IS COMPLEMENTED BY OUR LANDBANK FROM WHICH FUTURE PROJECTS WILL BE DEVELOPED. 289 Peru 72.5 US$MM US$MM VALUE OF LANDBANK Chile 61 US$MM e * Colombia 86 US$MM 2010 CHILE PERÚ COLOMBIA OTROS The investment amount estimated for years includes the total amount to be invested in projects and therefore may include a portion that has already been invested. 15

16 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$MM (1) % H13 1H14 STABLE EBITDA GENERATION (1) US$ MM % H13 1H14 (1) Does not include Marina Arauco for comparative purposes Note: Exchange rate = 553 CLP / USD Source: Parque Arauco 16

17 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 dec - 10 jun-11 dec-11 jun-12 dec-12 jun-13 sep-13 dec-13 jun months 4-6 months 7-12 months months months months months 6-10 years years FINANCIAL COVENANTS > 2.5x EBITDA / Financial Expenses < 1.4x Liabilities / (Equity + Mint Int) Q14 Rating: AA- (ICR) and A+ (Fitch). Average interest paid in 2012: 5.3% 1.Exchange rate: 553 CLP / USD 17

18 INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS RECENT DEVELOPMENTS 18

19 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

20 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 - CONCEPCIÓN 20

21 OUR OPERATIONS CHILE» SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy SANTIAGO Parque Arauco Kenned Arauco Maipú Paseo Arauco Estación Arauco Quilicura 115,200 74,000 68,000 31, % 100 % 83 % 100 % 115,200 74,000 56,440 31, % 96.9% 98.6% 98.2% SAN ANTONIO SANTIAGO Quilicura Buenaventura Outlet Kennedy Estación Central Buenaventura Outlet Mall 20, % 20,000 Arauco Express 13, % 6,723 (Stripcenters Chile) 95.2 % 91.6 % CONCEPCIÓN CHILLÁN Maipú SAN ANTONIO Arauco San Antonio 29, % 14, % CHILLÁN Arauco Chillán 37, % 37, % CONCEPCIÓN Mall Outlet Concepción 6, % 6, % TOTAL CHILE 394, % 362, % 21

22 PERÚ PARQUE ARAUCO ENTERED PERÚ IN 2006 AND IS NOW ONE OF THE TOP SHOPPING CENTER OPERATORS IN THE COUNTRY WITH 247,118 M 2 OF TOTAL GLA 22

23 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 PARQUE LAMBRAMANI - AREQUIPA

24 OUR OPERATIONS PERÚ» SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy LIMA MegaPlaza Norte 107, % 53, % MegaPlaza Express Villa 7, % 3,500 Larcomar Fashion Center 26, % 26,000 MegaPlaza Express Villa 9, % 4,500 El Salvador InOutlet Faucett 7, % 3,672 CHIMBOTE MegaPlaza Chimbote 28, % 9,380 CHINCHA MegaPlaza Express Chincha 7, % 3, % 95.3% 99.4 % 82.9 % 99.9 % % CHIMBOTE BARRANCA LIMA CAÑETE CHINCHA AREQUIPA Parque Lambramani 29, % 29,390 CAÑETE MegaPlaza Cañete 16, % 8, % 99.9% Megaplaza Norte Outlet Larcomar Mega Express Villa Villa El Salvador AREQUIPA BARRANCA MegaPlaza Express Barranca 9, % 4, % TOTAL PERÚ 247, % 146, % 24

25 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

26 OUR OPERATIONS COLOMBIA» SHOPPING CENTERS PARQUE ARBOLEDA PARQUE CARACOLÍ 26

27 OUR OPERATIONS COLOMBIA» SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy PEREIRA Parque Arboleda 34, % 10, % BUCARAMANGA BUCARAMANGA Parque Caracolí 39, % 21, % PEREIRA TOTAL COLOMBIA 73, % 32, % 27

28 INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS 28

29 FUTURE DEVELOPMENTS To date, Parque Arauco has announced projects that will add 141,648 m 2 of GLA over the next few years. Developments have been announced in Chile, Perú and Colombia and the total investment is estimated at US$ 587 million. Parque Arauco has a land bank valued at US$ 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. GREENFIELD PROJECTS NAME OF THE PROJECT Location Format Estimated Opening Date Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) Total Investment (MMUS$) Mall Outlet Curauma Chile Outlet Mall 3Q , % 7, Stripcenters Chile (Arauco Express) Chile Strip Center Under development 23, % 12, Stripcenters Perú Perú Strip Center Under development 25, % 12, MegaPlaza Pisco Perú Neighborhood 2H , % 7, MegaPlaza Perú Various Under development TBD 50.0% TBD 124 La Colina Colombia Regional 1H , % 34, Total 133,789 74, EXPANSION PROJECTS NAME OF THE PROJECT Location Format Estimated Opening Date Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) Total Investment (MMUS$) Boulevard V Kennedy Expansion Chile Regional 1Q % Buenaventura Expansion Chile Outlet Mall 4Q , % 6, Total 7,859 7,

30 FUTURE DEVELOPMENTS LANDBANK Name M 2 % Ownership Total Cost (MMUS$) Quilicura 2 25, % 3 Buenaventura 70, % 16 Coquimbo 40, % 4 Chicureo 47, % 10 Los Andes 40, % 5 Others in Chile 50, % 23 TOTAL CHILE 273, % 61 Parque El Golf 15,000 70% 28.5 Lurin 67, % 14 La Molina 10,085 51% 16 Colonial 2,960 51% 2 Landbank IPSA 163,040 50% 12 TOTAL PERÚ 258,085 62% 72.5 Barranquilla 56, % 54 Neiva 47, % 11 Valledupar 54,000 55% 21 TOTAL COLOMBIA 157,000 85% 86 TOTAL 688,482 81%

31 INVESTOR PRESENTATION AUGUST