INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION MARCH 214 1

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 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. 2

3 TABLE OF CONTENTS REGIONAL OVERVIEW (6) RECENT HISTORY (11) INVESTMENTS (22) FINANCING (39) 3

4 REGIONAL OVERVIEW 4

5 REGIONAL OVERVIEW 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 213E (US$) Brazil Canada Australia U.S.A. Mexico Chile Colombia Peru 1,9 2,5 2,3 2,5 2,8 2,9 2,9 3, 3,3 3,8 4, 4,4 4,5 4,6 5,4 5,6 214e (%) 215e (%) U.S.A. Canada Australia Chile Mexico Brazil Peru Colombia GDP per capita 213e Source: Bloomberg Consensus as of 3/3/214 Source: IMF as of October 213. Based on PPP UNDERPENETRATED SHOPPING CENTER SECTORS IN CHILE, PERU AND COLOMBIA VS. DEVELOPED COUNTRIES U.S.A Canada 65% Canada Australia Chile GLA per 1, inhabitants (m 2, 212) U.S.A. Australia Chile 25% 51% 56% Mexico 14 Peru 24% Colombia Brazil Mexico Brazil 2% 19% % of retail sales in shopping centers (212) Peru 55 Colombia 12% Source: International Council of Shopping Centers (March 213) and IMF (212 population for Brazil, Chile, Colombia, México and Peru) Source: International Council of Shopping Centers (March 213) 5

6 REGIONAL OVERVIEW CHILE: STABILITY AND GROWTH GDP GROWTH AND CREDIT RATING DOMESTIC CONSUMPTION GDP (US$bn current prices) Real GDP Growth (%) Domestic Consumption (US$bn) Var (%) 3.1% % % % % % % 8.8% 5.9% 6.8% Average Growth: 9.5% % 11.8% 13.1% 9.1%.5% % % 9.7% e Sovereign Credit Ratings 5-year CDS AA- Aa3 A+ ~78bps Source: World Bank. Figures expressed in USD considering FX = 56 CLP / USD Source: IMF as of October, 213. Bloomberg as of 28/feb/214 BANK LOANS RETAIL SALES INDEX Bank Loans (US$bn) Bank Loans as % of GDP Monthly var.yoy (%) Average 73,3% 68,5% 73,4% 78,1% 83,3% 25% 2% 126, 135,7 159,2 182, 26,1 15% 1% 5% % Sources: SBIF and IMF. Figures expressed in USD considering FX = 56 CLP / USD -5% jan jul jan jul jan jul jan jul jan jul Source: Instituto Nacional de Estadísticas (INE) 6

7 REGIONAL OVERVIEW PERU: STRONG GROWTH AND MACROECONOMIC PERSPECTIVES GDP GROWTH AND CREDIT RATING DOMESTIC CONSUMPTION GDP (US$bn current prices) Real GDP Growth (%) Domestic Consumption (US$bn) Var (%) 9.8% 127.9% % % % % 21 Average Growth: 7.8% 1.6% 7.4% 7.9% 6.3% 3.7% 4.6% 5.2% % % % 9.8% 7.9% e Sovereign Credit Ratings 5-year CDS BBB+ Baa2 BBB+ ~116bps Source: World Bank. Figures expressed in USD considering: 2.8 PEN/USD Source: IMF as of October, 213. Bloomberg as of 28/feb/214 BANK LOANS SALES IN SHOPPING CENTERS Bank Loans (US$bn) Bank Loans as % of GDP US$ bn YoY Var (%) 28,% ,5% 3,9% ,1% % 34,9% % % % Information as of September 213 Source: ASBANC and Banco Central de Reserva del Peru. Exchange rate: 2.8 PEN/USD e Source: ACCEP 7

8 REGIONAL OVERVIEW COLOMBIA: NEW OPPORTUNITIES GDP GROWTH AND CREDIT RATINGS POPULATION AND UNEMPLOYMENT GDP (US$bn current prices) Real GDP Growth (%) Population (Millions) Unemployment (%) 3.5% % % 4.% 4.% % e % 17.1% 14.3% 18.2% 11.4% 15.8% 13.1% % 11.5% 11.5% 12.4% 11.2% Sovereign Credit Ratings 5-year CDS BBB Baa3 BBB ~114bps Source: CEPAL Source: IMF as of October, 213. Bloomberg as of 28/feb/214 DOMESTIC CONSUMPTION RETAIL SALES INDEX (MMCM) Domestic Consumption (US$bn) Var (%) Monthly var.yoy (%) Average 25% % 9.5% 8.6% 11.3% 11.9% 9.4% 7.9% 7.5% Average Growth: 7.8% % % % 199 2% 15% 1% 5% % -5% -1% Source: World Bank. Figures expressed in USD considering FX = 25 COP / USD jan9 jul9 nov9 apr1 sep1 feb11 jul11 dec11 may12 oct12 mar13 aug13 Source: DANE Colombia as of December 213 8

9 RECENT HISTORY BUCARAMANGA PEREIRA CHIMBOTE BARRANCA LIMA CAÑETE CHINCHA AREQUIPA SAN ANTONIO SANTIAGO CHILLÁN 9

10 RECENT HISTORY GLA Shopping Center 29 Total GLA 213 Total GLA Ownership (%) 29 Own GLA 213 Own GLA Ownership Parque Arauco Kennedy 123, ,2 1.% 123, ,2 97.2% Arauco Maipú 54,267 74, 1.% 54,267 74, 97.3% Plaza El Roble 25, 25, 1.% 25, 25, 91.9% Paseo Arauco Estación 64,619 68, 83.% 53,634 56, % Arauco San Antonio 6,352 29, 51.% 3,24 14,79 94.% Arauco Quilicura 31,26 1.% 31, % Arauco Express (Stripcenters) 4,51 12, % 2,3 6, % Buenaventura Outlet Mall 2, 1.% 2, 98.% TOTAL CHILE 278, , % 261,93 342, % Megaplaza Norte 76,317 17,4 5.% 38,159 53,7 9.% Mega Express Villa 4,171 7, 5.% 2,86 3,5 1.% Larcomar Fashion Center 26, 1.% 26, 94.% MegaPlaza Chimbote 28, 33.5% 9,38 1.% Mega Express Villa el Salvador 9, 5.% 4,5 95.% Parque Lambramani 29,39 1.% 29,39 92.% Mega Express Barranca 9,57 5.% 4, % Mega Express Cañete 16,397 5.% 8, % Mega Express Chincha 7,224 5.% 3, % Strip Centers Peru 5, 51.% 2,55 87.% TOTAL PERU 8, , % 4, , % Parque Arboleda 34, 3.3% 1, % Parque Caracolí 39,5 55.% 21, % TOTAL COLOMBIA 73,5 43.6% 32,1 89.2% TOTAL WITHOUT MARINA ARAUCO 358, ,1 75.1% , % 1

11 RECENT HISTORY EVOLUTION OF REVENUES REVENUES¹ Millions USD CAGR % +73% LAST THREE YEARS LAST FIVE YEARS FOR COMPARATIVE PURPOSES, MARINA ARAUCO IS NOT INCLUDED *USD/CLP = $492.1, AVERAGE EXCHANGE RATE AS OF NOVEMBER,

12 RECENT HISTORY REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED PRIMARILY FROM FIXED CONTRACTS AND 59% OF OUR CONTRACTS HAVE A DURATION OF MORE THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (JAN 13 -DEC 13) CONTRACT LENGTH AS OF OCT 13 (BASED ON % OF GLA) 1 18% Variable Revenue % Fixed Revenue < 2 years 2-3 years 3-4 years > 4 years Total OUR REVENUES ARE PROTECTED AGAINST INFLATION 12

13 RECENT HISTORY WE HAVE SOLID COMMERCIAL RELATIONSHIPS IN CHILE, PERU AND COLOMBIA 13

14 RECENT HISTORY EBITDA EVOLUTION EBITDA ¹ CAGR Millions of USD % +66% LAST THREE YEARS LAST FIVE YEARS FOR COMPARATIVE PURPOSES, MARINA ARAUCO IS NOT INCLUDED *USD/CLP = $492.1, AVERAGE EXCHANGE RATE AS OF NOVEMBER

15 RECENT HISTORY RISK DIVERSIFICATION GLA DISTRIBUTION BY COUNTRY 213 (%) 54% 35% 11% 73,5 693,1 244, ,682 SOCIOECONOMIC DISTRIBUTION IN SANTIAGO (ACCORDING TO THE 26 CENSUS) ABC1 C2 C3 D E Kennedy Chile PerU Colombia Total Maipú Paseo Estación GLA DISTRIBUTION BY FORMAT¹ 213 (%) Quilicura % 7% 5% 66,75 693,1 49,128 37,222 Regional Shopping Centers Neighborhood Shopping Centers Others Total PARQUE ARAUCO CONTINUES TO DIVERSIFY RISKS BY GROWING IN VARIOUS COUNTRIES, SEGMENTS AND FORMATS. 1 REGIONAL SHOPPING CENTERS:MORE THAN 2, M 2 ; NEIGHBORHOOD SHOPPING CENTERS:BETWEIN 6, M 2 AND 2, M 2 ; OTHERS: INCLUDES OUTLETS MALLS AND STRIP CENTERS 15

16 RECENT HISTORY OPERATIONS IN CHILE GLA: 374,682 M 2 OCCUPANCY: 96.9% SALES: US$1,564MM 6 REGIONAL SHOPPING CENTERS 1 OUTLET MALL 8 STRIP CENTER PARQUE ARAUCO KENNEDY - SANTIAGO ARAUCO QUILICURA - SANTIAGO ARAUCO MAIPÚ - SANTIAGO ARAUCO SAN ANTONIO - SAN ANTONIO TOTAL: 15 ASSETS IN OPERATION PASEO ARAUCO ESTACIÓN - SANTIAGO BUENAVENTURA OUTLET MALL - SANTIAGO PLAZA EL ROBLE - CHILLAN STRIPCENTERS CHILE 16

17 RECENT HISTORY OPERATIONS IN PERU GLA: 244,918 M 2 OCCUPANCY: 91.% SALES: US$662 MM 4 REGIONAL SHOPPING CENTERS 5 NEIGHBORHOOD SHOPPING CENTERS 1 OUTLET MALL MEGAPLAZA NORTE - LIMA MEGAPLAZA - CHIMBOTE LARCOMAR FASHION CENTER - LIMA PARQUE LAMBRAMANI - AREQUIPA TOTAL: 1 ASSETS IN OPERATION MEGAEXPRESS VILLA - LIMA MEGAEXPRESS VILLA EL SALVADOR - LIMA MEGAPLAZA - BARRANCA LIMA OUTLET CENTER - LIMA 17

18 RECENT HISTORY OPERATIONS IN COLOMBIA GLA: 73,5 M 2 OCCUPANCY: 89.2% SALES: US$122 MM 2 REGIONAL SHOPPING CENTERS IN OPERATION PARQUE ARBOLEDA PARQUE CARACOLI 18

19 RECENT HISTORY PARQUE ARAUCO HISTORY AND HIGHLIGHTS INDUSTRY KNOWLEDGE CONTINUOUS INNOVATION PARQUE ARAUCO KENNEDY WAS THE FIRST SHOPPING CENTER BUILT IN CHILE(1982). PAK (1982) PAK (213) 1982 First shopping center in Chile 1997 First shopping center to integrate a medical center into its operation. 23 First Boulevard in Chile. 27 First mall in the country with a Design District. 21 First mall in Chile with a "smart parking system 212 First parking lot in Chile to incorporate the free flow technology. 213 First shopping mall in Latin America with a geolocalization mobile application Parque Arauco inaugurated the first Luxury District in Chile. PARQUE ARAUCO WAS ALSO THE FIRST CHILEAN COMPANY IN ITS INDUSTRY TO EXPAND OUTSIDE CHILE (1994) 19

20 INVESTMENTS 2

21 INVESTMENTS PROJECTS 213 AND BEYOND Project Name Status % Ownership M 2 Total Investment MM$USD Mall Arauco Quilicura Inaugurated in 2Q13 1% 21,56 5 Mall Outlet Concepción Opening in 1Q14 1% 6, Mall Outlet Curauma Opening in 3Q14 1% 7, Expansión El Roble - Chillán Opening in 2Q14 1% 12,5 26 Boulevard IV Kennedy Inaugurated in 3Q13 1% 7,2 25 Boulevard V Kennedy Opening in 1Q15 1% Stripcenters Chile In development 51% 24, TOTAL CHILE 8, Mega Express Chincha Inaugurated in March 213 5% 7, Mega Express Barranca Inaugurated in 4Q13 5% 9,57 15 Mega Express Cañete Inaugurated in 3Q13 5% 16, Expansión Megaplaza Inaugurated in 4Q13 5% 24,4 48 Paris Lambramani Inaugurated in 4Q13 6% 1,39 1 Lambramani (4%) Acquired in 4Q13 1% n/a 3 Face Lifting Larcomar Inaugurated in Sept 213 1% n/a 5 Stripcenters Peru In development 51% 27, TOTAL PERU 86, Bucaramanga Inaugurated in 2Q13 55% 39,5 1 La Colina In development 55% 63, TOTAL COLOMBIA 12, TOTAL LANDBANK 411, TOTAL INVESTMENT 269,

22 INVESTMENTS LANDBANK INVESTMENT IN LANDBANK SINCE 213 INCLUDING THE LANDBANK ALREADY OWNED OF 325,118 M 2, WE HAVE REACHED A HISTORICAL LEVEL OF 766,429 M 2 OF AVAILABLE LANDBANK Name M 2 Buenaventura II 25,4 Buenaventura III 22,64 Buenaventura III - Parking 47,657 Coquimbo 4, Chicureo 47,614 Los Andes 4, Otros Chile 5, LANDBANK CHILE 273,311 Total Investment Lurin Parque El Golf (23%) LANDBANK PERU 67, n/a 67, Neiva Valledupar I Valledupar II Barranquilla (49%) LANDBANK COLOMBIA 47, 46, 8, n/a 11, TOTAL LANDBANK *USD/CLP = $

23 INVESTMENTS INVESTMENT HISTORY CONSOLIDATED INVESTMENT BY YEAR Millions of USD *USD/CLP = $ ** INVESTMENTS IN 212 & 213 DO NOT INCLUDE MARINA ARAUCO 23

24 INVESTMENTS ARAUCO QUILICURA SANTIAGO, CHILE MAIN STORES AND ATTRACTIONS GENERAL DESCRIPTION 2 Anchor stores: Hites and París Homecenter Smaller stores (21) Food Court (1) Entertainment (1) Cinema (6) Total GLA: 31,26 m 2 Total Investment: US$ 5 million Opening Date: 1H 213 Quilicura SANTIAGO 24

25 INVESTMENTS CONCEPCIÓN OUTLET CONCEPCIÓN, CHILE MAIN STORES AND ATTRACTIONS Premium Outlet Stores 26 stores in total GENERAL DESCRIPTION Total GLA: 6,394 m 2 Total Investment: US$ 12 million Opening Date: 1H 214 Concepción 25

26 INVESTMENTS CURAUMA OUTLET VALPARAÍSO, CHILE MAIN STORES AND ATTRACTIONS Premium Outlet Stores 31 stores in total GENERAL DESCRIPTION Total GLA: 7,224 m 2 Total Investment: US$ 12 million Opening Date: 3Q 214 Valparaíso 26

27 INVESTMENTS PLAZA EL ROBLE EXPANSION CHILLÁN, CHILE MAIN STORES AND ATTRACTIONS GENERAL DESCRIPTION New department stores: Hites Total GLA: 12.5 m 2 Expansion of anchor stores Total Investment: US$ 26 million Additional small stores (38) Opening Date: 1H 214 Improved food court New entertainment options Improved cinema (increasing from 2 to 4 theaters) Chillán 27

28 INVESTMENTS PARQUE ARAUCO KENNEDY EXPANSION (BLVD 4) SANTIAGO, CHILE MAIN CHARACTERISTICS PARQUE ARAUCO KENNEDY The area will consisit of a Luxury District, restaurants (3) and high end stores (9). Project: Boulevard IV Total GLA: 7,2 m 2 Total Investment: US$ 25 million Opening Date: 3Q 213 SANTIAGO Kennedy 28

29 INVESTMENTS PARQUE ARAUCO KENNEDY EXPANSION (BLVD 5) SANTIAGO, CHILE MAIN STORES AND ATTRACTIONS GENERAL DESCRIPTION 5 New high end operators Additional GLA: 952 m 2 Total GLA: 2,17m 2 Total Investment: US$ 9.1 million Opening Date: 1Q 215 SANTIAGO Kennedy 29

30 INVESTMENTS MEGA EXPRESS CHINCHA CHINCHA, PERU MAIN CHARACTERISTICS Neighborhood shopping center Joint venture with partners in Peru: Grupo Wiese Supermarket, anchor store, smaller stores(23) and banks(3) GENERAL DESCRIPTION Total GLA: m 2 Total Investment: US$ 11 million Opening Date: 1Q 213 PERU Chincha 3

31 INVESTMENTS MEGA EXPRESS BARRANCA BARRANCA, PERU MAIN CHARACTERISTICS Neighborhood shopping center Joint venture with partner in Peru: Grupo Wiese Food court, restaurants, smaller stores and banks GENERAL DESCRIPTION Total GLA: 9,57 m 2 Total Investment: US$ 15 million Opening Date: 4Q 213 PERU Barranca 31

32 INVESTMENTS MEGA EXPRESS CAÑETE CAÑETE, PERU MAIN CHARACTERISTICS GENERAL DESCRIPTION Neighborhood shopping center Joint venture with partners in Peru: Grupo Wiese Supermarket, anchor stores (2), smaller stores (3), entertainment (2) and banks(2). Total GLA: 16,397 m 2 Total Investment: US$ 15 million Opening Date: 3Q 213 PERU Cañete 32

33 INVESTMENTS MEGAPLAZA NORTE EXPANSION LIMA, PERU MAIN CHARACTERISTICS One anchor store (París) Diverse smaller stores Private medical center GENERAL DESCRIPTION Project: Expansion, new stores Total GLA: 24,4 m 2 Total Investment: US$ 48 million Opening Date: 4Q 213 PERU Lima 33

34 INVESTMENTS LAMBRAMANI EXPANSION AREQUIPA, PERU GENERAL DESCRIPTION Project: Expansion Additional GLA: 1,39 m 2 Total GLA: m 2 Total Investment: US$ 1.3 million Opening Date: 4Q 213 PERU Arequipa 34

35 INVESTMENTS PARQUE CARACOLÍ BUCARAMANGA, COLOMBIA MAIN CHARACTERISTICS GENERAL DESCRIPTION 1 department store (Falabella) Smaller stores (59) Food court and restaurants (13) Entertainment Cinema Total GLA: 39,5 m 2 Total Investment: US$ 1 million Opening Date: 1H 213 Bucaramanga COLOMBIA 35

36 INVESTMENTS PARQUE LA COLINA BOGOTÁ, COLOMBIA MAIN CHARACTERISTICS Located in northern Bogota, its projected to be the leading shopping mall in an affluent sector of the city. Opening in 217, the shopping center will boast internationally renowned brands which have shown a strong interest in the project. Current status: Construction permits have been approved. Bogota COLOMBIA GENERAL DESCRIPTION Total GLA: 63,428 m 2 Total Investments: US$ 289 million Opening Date: 1H 217 Área Total: 28.4 m 2 36

37 FINANCING 37

38 FINANCING FINANCING: US$ 9 MILLION FINANCING PLAN (%) Own resources 23% Debt 4% 9US$MM Partners Contributions 14% Capital increase 23% 38

39 FINANCING STOCK EVOLUTION Parque Arauco Retail IPSA % % % 5.% 45.% 4.% 35.% 3.% 25.% 2.% 15.% 1.% 5.%.% Jan-9 Feb-9 Mar-9 Apr-9 May-9 Jun-9 Jul-9 Aug-9 Sept-9 Oct-9 Nov-9 Dec-9 Jan-1 Feb-1 Mar-1 Apr-1 May-1 Jun-1 Jul-1 Aug-1 Sept-1 Oct-1 Nov-1 Dec-1 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sept-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sept-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 Dec-13 INICIAL PEAK LOW FINAL Chilean Pesos 29 clp clp 28 clp 965 clp Date *USD/CLP = $

40 FINANCING SOLID FINANCIAL STRUCTURE FINANCIAL DEBT AMORTIZATION SCHEDULE NET FINANCIAL DEBT Gross financial debt amortization (US$ MM ) 238 (US$ MM ) Months 4-6 Months 7-12 Months Months Months Months 49-6 Months 6-1 Years 11-2 Years Dec - 1 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Sept-13 Dec-13 FINANCIAL COVENANTS (Last 22 months) 3, >2.5 times EBITDA/Financial Expenses <1.4 times Debt/Equity Feb - 12 Mar - 12 Apr - 12 May - 12 Jun - 12 Jul - 12 Aug - 12 Sept - 12 Oct - 12 Nov - 12 Dec - 12 Feb - 13 Mar - 13 Apr - 13 May - 13 Jun - 13 Jul - 13 Aug - 13 Sept - 13 Oct - 13 Nov - 13 Dec - 13 SOURCE: PARQUE ARAUCO NOTE: AVERAGE EXCHANGE RATE 213 CLP / USD 492,19 Local Rating: A+ (Fitch) y A+ (Humphreys) Average interest on debt paid in 213: 4,81% 4

41 41