introduction to parque arauco

Transcription

I N V E S TO R D AY
LIMA
NOVEMBER 2014
AGENDA
WELCOME ADDRESS
THIRD QUARTER RESULTS
PARQUE ARAUCO PERÚ
OVERVIEW AND STRATEGY
PARQUE ARAUCO PERÚ
CASE STUDIES
-
LAMBRAMANI
LARCOMAR
INOUTLET FAUCETT
AGENDA
WELCOME ADDRESS
PARQUE ARAUCO PERÚ
PARQUE ARAUCO PERÚ
CASE STUDIES
-
LAMBRAMANI
LARCOMAR
INOUTLET FAUCETT
WELCOME ADDRESS
CLAUDIO CHAMORRO
CFO HOLDING PARQUE ARAUCO
INVESTOR DAY
LIMA 2014
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.
INTRODUCTION TO
PARQUE ARAUCO
O UR OP E R AT IO NS
F U T U R E D EV ELO PM ENT S
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 (m2)1
394,500252,000 71,500
Owned GLA
359,985
149,495
31,460
95.7%
95.8%
89.6 %
Revenues LTM (US$MM)
143 55
18
# of Operations
18
11
2
Occupancy
2
(1) Marina Arauco not included
(2) Exchange Rate: US$ 1 =CLP 560; LTM= Oct. 13 - Sept. 14
SHAREHOLDER STRUCTURE (SEPT 2014)
Mutual Funds Insurance Companies
1.7% 0.3%
Others
Investment Funds
6.2%
27.4%
Brokers
21.3%
Market Cap
1,712
US$MM
Pension Funds
8.3%
TOTAL GLA 1
Colombia
10.0%
Perú
35.1%
Colombia
8.3%
Perú
25.4%
Total
216 US$ MM
Total
718,000 m 2
Chile
66.3%
Chile
54.9%
(2) Exchange Rate: US$ 1 =CLP 560; LTM = Oct. 13 -Sept. 14
OPERATIONAL METRICS BY FORMAT
TOTAL GLA 1
REVENUES LTM 2
Regional
85.5%
Total
718,000 m 2
Controlling Group
26.0%
Abumohor Family
2.7%
Said Yarur Family
6.1%
REVENUES LTM 2
Neighborhood
6.8%
Others
5.5%
Neighborhood
3.6%
Total
216 US$ MM
Others
7.7%
(2) Exchange Rate: US$ 1 =CLP 560; LTM= Oct 13 - Sept. 14
Others includes strip centers and outlet malls.
Regional
90.9%
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
179
2009 First Neighborhood shopping center in Perú (Mega Express Villa, in Chorrillos, Lima)
192
154
54
50
60
82
122
121
131
CAGR
16.1%
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
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2012 Parque Arauco’s 30th anniversary, marked by
further expansion in Chile, Perú & Colombia
2014 Capital increase for US$182 mm
GLA M 2
NET INCOME US$MM
EBITDA US$MM
5.3x
130,785
32
2013
89
133
693,100
2004
6.5x
4.2x
2004
14
2013
Source: Parque Arauco SVS. Exchange Rate: US$ 1 = CLP 560. 2004-2008 in Chilean GAAP, 2009-2013 in IFRS. Marina Arauco not included.
2004
2013
REVENUE TYPE AND CONTRACT DURATION
OUR RENTAL REVENUES ARE DERIVED
PRIMARILY FROM FIXED CONTRACTS
FIXED VS VARIABLE RENTAL REVENUES (OCT 13 - SEPT 14)
AND 64% OF OUR CONTRACTS HAVE A DURATION OF MORE
THAN 4 YEARS
CONTRACT LENGTH (BASED ON % OF GLA) 1
100
16%
Variable Revenues
64
6
9
21
< 2 years
2-3 years
3 - 4 years
> 4 years
Total
84%
Fixed Revenues
1. As of June 2014.
OUR REVENUES ARE PROTECTED
AGAINST INFLATION
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 Bancolombia in all projects (45%)
Familia Merheg in Parque Arboleda (45%)
PERÚ
GLA (m2)252,000
CHILE
% Ownership
59.3%
GLA (m2)394,500
Owned GLA
149,495
% Ownership
91.3 %
Partners:
Owned GLA
359,985
Grupo Wiese in all Megaplaza formats (50%)
Partners:
Los Portales S.A. in all S.C.P. projects (49%)
Empresas de Ferrocarriles del Estado in
Inversiones Centenario, S.A.A. in Parque el
Paseo Arauco Estación (17%)
Golf project (50%)
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%)
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 IN
TERMS OF GLA
Shopping Centers / Country
CHILE
GLA
394,500 m2
PERÚ
COLOMBIA
Total GLA
252,000 m2
73,500 m2 718,000 m2
Market Share
12 %
12 %
2 %
8%
Ranking
#4
#3
(n.a.)
(n.a.)
PARQUE ARAUCO IS THE ONLY COMPANY IN THE ANDEAN REGION FOCUSED ON RETAIL REAL ESTATE
15%
85%
Parque Arauco
Chilean Company 1
4.9%
Chilean Company 2
2%
Peruvian Company 1
4%
Peruvian Company 2
11,687
44%
12%
30%
34%
66%
Market Share Source: ISCS.as of November 2013; Revenue Source: 2013 Company Financial Statements
7%
3%
74%
9%
64%
34%
14%
Revenues from Real Estate
Revenues from Home Improvement
Revenues from Department Stores
Revenues from Supermarkets
Revenues from Financial Operations
Revenues from Other
INTROD UC T I O N TO
PARQ UE A R AU C O
OUR OPERATIONS
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
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
OUR OPERATIONS
CHILE
»
SHOPPING CENTERS
GLA (m2)
%Ownership
Owned GLA (m2)
Occupancy
SANTIAGO
SANTIAGO
Parque Arauco Kennedy
Arauco Maipú
Paseo Arauco Estación
100%
115,000
97.7%
75,000
100%
75,000
96.8%
69,000
83%
57,270
97.8%
115,000
Arauco Quilicura
32,000
100%
32,000
98.8%
Buenaventura Outlet Mall
19,000
100%
19,000
92.4 %
Arauco Express
(Stripcenters Chile)
18,000
51%
9,180
83.9 %
28,500
51%
14,535
93.2 %
31,500
100%
31,500
93.4 %
100%
6,500
75.3%
394,500
91.3%
359,985
95.7%
CHILLÁN
Arauco Chillán
CONCEPCIÓN
Mall Outlet Concepción
TOTAL CHILE
6,500
Buenaventura Outlet
Kennedy
Estación Central
SAN ANTONIO
CHILLÁN
CONCEPCIÓN
SAN ANTONIO
Arauco San Antonio
Quilicura
Maipú
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
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
PARQUE LAMBRAMANI - AREQUIPA
OUR OPERATIONS
PERÚ
»
SHOPPING CENTERS
GLA (m2)
%Ownership
Owned GLA (m2)
Occupancy
LIMA
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
El Salvador
9,000
50 %
4,500
99.4 %
InOutlet Faucett 7,500
51 %
3,825
82.9 %
Viamix Chorrillos
4,000
51%
2,040
N/A
MegaPlaza Norte
CHIMBOTE
BARRANCA
LIMA
CHIMBOTE
MegaPlaza Chimbote
CHINCHA
MegaPlaza Express Chincha
AREQUIPA
Parque Lambramani
28,000
33.5 %
9,380
99.9 %
7,000
50 %
3,500
100.0 %
CAÑETE
CHINCHA
AREQUIPA
MegaPlaza Norte
InOutlet Faucett
30,000
100 %
30,000
94.7 %
Larcomar
MegaPlaza Express Villa Chorrillos and Viamix Chorrillos
CAÑETE
MegaPlaza Cañete
BARRANCA
MegaPlaza Express Barranca
TOTAL PERÚ
MegaPlaza Villa El Salvador
16,500
50 %
8,250
99.9%
9,500
50 %
4,750
100.0%
252,00059.3% 149,495
95.8%
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
OUR OPERATIONS
COLOMBIA
PARQUE ARBOLEDA
»
SHOPPING CENTERS
PARQUE CARACOLÍ
OUR OPERATIONS
COLOMBIA
»
SHOPPING CENTERS
GLA (m2)
%Ownership Owned GLA (m2)
Occupancy
PEREIRA
Parque Arboleda 33,000
30.3 %
10,285
92.9 %
38,500
55 %
21,175
86.8 %
BUCARAMANGA
BUCARAMANGA
Parque Caracolí
TOTAL COLOMBIA
71,50043.6%
31,460
89.6%
PEREIRA
INTRODUCTION TO
PARQUE ARAUCO
O UR OP E R AT IO NS
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 (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
(m2)
% Ownership
Owned GLA
(m2)
Total
Investment
(MMUS$)
Mall Outlet Curauma
Chile
Outlet Mall
4Q 2014
7,200
100.0%
7,200
12
Stripcenters Chile (Arauco Express)
Chile
Strip Center
Under development
14,700
51.0%
7,497
35
Stripcenters Perú
Perú
Strip Center
Under development
25,100
51.0%
12,801
72
MegaPlaza Pisco
Perú
Neighborhood
4Q 2014
14,000
50.0%
7,000
14
Others MegaPlaza
Perú
Various
Under development
TBD
50.0%
TBD
124
Colombia
Regional
1H 2017
63,400
55.0%
34,870
289
69,368
546
La Colina
124,400
Total
EXPANSION PROJECTS
NAME OF THE PROJECT
Location
Format
Estimated
Opening Date
Total GLA
(m2)
% Ownership
Owned GLA
(m2)
Total
Investment
(MMUS$)
Boulevard V Kennedy Expansion
Chile
Regional
1Q 2015
1,000
100.0%
1,000
9
Buenaventura Expansion
Chile
Outlet Mall
4Q 2014
6,900
100.0%
6,900
24
33
Total
7,900
7,900
Total
132,300
77,268
579
FUTURE DEVELOPMENTS
LANDBANK
M2
% Ownership
Total Cost
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%
14
La Molina
10,085
51%
16
Colonial
2,960
51%
2
Landbank IPSA
169,745
50%
19
TOTAL PERÚ
264,790
64%
79.5
Barranquilla
56,000
100%
54
Neiva
47,000
100%
11
Valledupar
54,000
55%
21
TOTAL COLOMBIA
157,000
85%
86
TOTAL
695,187
83%
226.5
Name
(MMUS$)
AGENDA
WELCOME ADDRESS
PARQUE ARAUCO PERÚ
PARQUE ARAUCO PERÚ
CASE STUDIES
-
LAMBRAMANI
LARCOMAR
INOUTLET FAUCETT
EDUARDO PÉREZ MARCHANT
GERENTE DE FINANZAS HOLDING PARQUE ARAUCO
INVESTOR DAY
LIMA 2014
FINANCIAL AND OPERATING RESULTS
INCOME STATEMENT - CONSOLIDATED
3Q14
3Q13
2014
2013
Revenues
30,784,238
26,136,196
17.8%
88,685,580
75,295,864
17.8%
Cost of Sales
(7,304,268)
(5,427,593)
34.6%
(20,667,518)
(15,844,459)
30.4%
Gross Profit
23,479,970
20,708,603
13.4%
68,018,062
59,451,405
14.4%
Administration Expenses
(3,353,095)
(2,972,418)
12.8%
(10,411,194)
(9,077,709)
14.7%
OPERATING INCOME
20,126,875
17,736,185
13.5%
57,606,868
50,373,696
14.4%
Depreciation & Amortization
(1,069,819)
(685,865)
56.0%
(2,587,508)
(2,062,384)
25.5%
EBITDA
21,196,694
18,422,050
15.1%
60,194,376
52,436,080
14.8%
Other Income / Expenses
(288,046)
(1,828,635)
-84.2%
(1,285,183)
(4,769,623)
-73.1%
Financial Income
1,549,326
695,857
122.7%
3,682,371
2,748,521
34.0%
(6,804,619)
(5,414,886)
25.7%
(18,626,733)
(13,793,406)
35.0%
Share of Profit (Loss) of Associates Accounted
1,275,828
1,169,250
9.1%
3,732,461
3,829,881
-2.5%
Foreign Exchange Differences
1,830,529
(640,369)
-385.9%
2,394,387
404,917
491.3%
Income (Loss) for indexed assets and liabilities
(1,687,822)
(2,684,077)
-37.1%
(9,153,414)
(2,816,785)
225.0%
NON-OPERATING INCOME (EXPENSES)
(4,124,804)
(8,702,860)
-52.6%
(19,256,111)
(14,396,495)
33.8%
Profit before Income Tax
16,002,071
9,033,325
77.1%
38,350,757
35,977,201
6.6%
Income Tax
(1,901,116)
(910,171)
108.9%
(6,593,456)
(6,227,890)
5.9%
NET PROFIT (LOSS)
14,100,955
8,123,154
73.6%
31,757,301
29,749,311
6.7%
12,428,020
7,034,562
76.7%
27,046,397
26,872,050
0.6%
1,672,935
1,088,592
53.7%
4,710,904
2,877,261
63.7%
14,100,955
8,123,154
73.6%
31,757,301
29,749,311
6.7%
CH$ THOUSANDS
Financial Expenses
Chg. %
Chg. %
Attributable to:
Equity holders of the company
Minority interests
NET PROFIT (LOSS)
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
15,941
13,703
16.3%
45,250
41,391
9.3%
51.8%
52.4%
-64
51.0%
55.0%
-395
Total Tenant Sales (Ch$ Millions)2
320,611
279,129
14.9%
936,239
794,850
17.8%
Total GLA (m2)3
718,000
642,100
11.8%
718,000
642,100
11.8%
Owned GLA(m2)3
540,940
483,431
11.9%
540,940
483,431
11.9%
814.50
699.50
16.4%
789.22
699.50
12.8%
15.26
10.06
51.7%
34.27
38.42
-10.8%
1,142.60
970.00
17.8%
1,142.60
970.00
17.8%
415.39
1,085.00
-61.7%
999.30
1,331.00
-24.9%
FFO (Ch$ Millions)1
FFO Margin %
Weighted Avg. Shares (Millions)4
EPS (Ch$ Thousands)5
Stock Price (Ch$)
Daily Traded Volume (Ch$ Millions)
“During the third quarter, sales in Parque Arauco´s shopping centers in Peru and Colombia continued consolidating and showed healthy levels
of growth, while sales in our shopping centers in Chile remained relatively stable in spite of the overall deceleration of retail sales in the country.
Also during the quarter we incorporated the first strip center to our portfolio in Peru. This marks the first time we have participated in this
format outside of Chile. Strip Center Viamix Chorrillos adds 4,000 m2 of GLA and adds to Parque Arauco´s diverse commercial offering in
Peru which includes regional shopping centers, neighborhood shopping centers, outlet malls and strip centers.
Finally, during the third quarter the President of Parque Arauco S.A.´s Board of Directors, Mr. José Said Saffie was recognized as one of the
top three Directors of Leading Companies in Sustainability by Agenda de Líderes Sustentables 2020, ALAS20, organized by the think tank
GovernArt. The same organization recognized Parque Arauco as one of the top five companies in Chile in terms of quality of its investor
relations team. This recognition joins that given by Revista Capital during the second quarter, which distinguished Parque Arauco as one
of the top three medium sized companies in Chile in terms of its investor relations team” said Chief Executive Office Juan Antonio Álvarez.
1. FFO = EBITDA + FINANCIAL INCOME + FINANCIAL EXPENSES 2. TOTAL TENANT SALES = SALES OF CONSOLIDATED ASSETS 3. GLA OF MARINA ARAUCO NOT CONSIDERED 4. EXCLUDES 3,250,000 TREASURY
SHARES 5.EPS = NET INCOME ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE COMPANY/WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING.
OPERATING INCOME
Revenues for the third quarter of 2014 increased 17.8% yearover-year to Ch$ 30,784 million. The growth was primarily the
result of additional GLA and improved rental revenues and tenant
sales across nearly all of the Company´s existing properties. Total
GLA for the Company at the end of the third quarter was 718,000
m², up 11.8% compared to the same period in 2013. The increase
reflects the addition of Mall Outlet Concepcion, Strip Center
Manuel Montt and Strip Center Las Brujas in Chile, and Strip Center
Viamix Chorrillos, MegaPlaza Cañete, and MegaPlaza Barranca in
Peru. Additionally, the expansion of Arauco Chillan in Chile, and the
expansions of MegaPlaza Norte, Parque Lambramani and InOutlet
Faucett (Lima Outlet Center) in Peru contributed to the growth of
the Company´s GLA.
Consolidated occupancy remained stable at 95.1% in 3Q14. Total
tenant sales for the quarter increased by 14.9% to Ch$ 320,611
million.
TENANT SALES (Ch$ Millions)
17.8%
936,239
794,850
14.9%
279,129
320,611
REVENUES (Ch$ Millions)
3Q13
17.8%
88,686
75,296
17.8%
26,136
3Q13
30,784
3Q14
2013
2014
3Q14
2013
2014
Parque Arauco is committed to diversifying its asset base in
terms of formats. During the last twelve months, Parque Arauco
increased its GLA of outlet malls and strip centers by 42.5%.
During the third quarter Parque Arauco inaugurated its tenth strip
center in Chile, Strip Center Las Brujas in La Reina, Santiago and
construction continued on Strip Center El Carmen de Huechuraba
and Mall Outlet Curauma. Additionally, Buenaventura Premium
Outlet is being expanded by 6,900 m2. In Peru, Strip Center Viamix
Chorrillos was added to the portfolio and construction on a new
neighborhood shopping center, MegaPlaza Pisco, continued.
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. During
the third quarter of 2014, revenues from Chile totaled Ch$ 19,701 million, revenues from Peru were Ch$ 8,504 million, and revenues from
Colombia reached Ch$ 2,579 million.
3Q14 REVENUES BY COUNTRY
3Q13 REVENUES BY COUNTRY
8.4%
8.2%
Colombia
Colombia
64.0%
69.5%
Chile
Chile
27.6%
22.3%
Perú
Perú
1H14 REVENUES BY COUNTRY
1H13 REVENUES BY COUNTRY
8.2%
6.6%
Colombia
Colombia
65.1%
70.7%
Chile
Chile
26.7%
22.6%
Perú
Perú
Operating income during the third quarter of 2014 increased 13.5% to Ch$ 20,127 million. Cost of sales and administration expenses
increased 26.9% during the period, reaching Ch$ 10,657 million. This increase is explained by additional expenses in territorial taxes,
electricity and salaries.
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
margin of 70.48%. The decrease reflects the increased number
of new shopping centers in the Company´s portfolio that are still
in the process of maturation, as well as additional costs incurred
during a period of intense growth.
EBITDA BY COUNTRY 3Q14
5.6%
Colombia
67.3%
EBITDA (Ch$ Millions)
Chile
27.1%
Perú
14.8%
60,194
52,436
15.1%
21,197
18,422
EBITDA BY COUNTRY 3Q13
3Q13
3Q14
2013
2014
Colombia and Peru´s contribution to the company´s EBITDA
during the third quarter increased importantly to 32.7%, up
from 25% during the same period in 2013. During the quarter,
EBITDA from operations in Chile totaled Ch$ 14,269 million,
Ch$ 5,734 million in Peru and Ch$ 1,193 million in Colombia.
6.0%
Colombia
75.0%
19.0%
Perú
Chile
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 the local currencies against the dollar; lower expenses in the other income and other expenses account due to events that occurred
in 2013 and did not occur in 2014, higher expenses in the financial expenses account due to the company holding more debt overall
including a higher proportion of nominal debt; and a lower cost for losses on indexed assets and liabilities, due to a lower level of
inflation in 2014 than in 2013.
Income taxes for the quarter increased to Ch$ 1.901 million as compared to the 2013 figure of Ch$ 910 million. Excluding the noncash deferred tax expense, third quarter 2014 real income tax totaled Ch$ 2,730 million compared to Ch$ 1,213 million in 2013.
CH$ THOUSANDS
Real Income Tax
Deferred Tax
Total Tax
3Q14
3Q13
(2,729,878)
(1,212,648)
828,762
(1,901,116)
Chg. %
2014
2013
Chg. %
125.1%
(7,289,635)
(5,427,051)
34.3%
302,477
174.0%
696,179
(800,839)
-186.9%
(910,171)
108.9%
(6,593,456)
(6,227,890)
5.9%
Net profit was up 73.6% in the third quarter due to the Company´s higher EBITDA and lower non-operating expenses. Net profit
attributable to equity holders of the company was up 76.7% and earnings per share increased from Ch$ 10.06 to Ch$ 15.26. The
average number of shares outstanding for the quarter and the total number of shares outstanding increased to 817,747, 054 after the
capital increase that was executed during the first quarter 2014. This figure includes 3,250,000 treasury shares. FFO (“Funds from
Operations”) for the quarter were Ch$ 15,941 million, as compared to Ch$ 13,703 million in 2013, representing a 16.3% increase.
BALANCE SHEET REVIEW
ASSETS
Ch$ millions
30.09.2014
Current Assets
158,556
Dif.
31.12.2013
Var. (%)
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$ 117,108 million at the end of 2013 due primarily to an increase in cash
and cash equivalents. Cash and cash equivalents increased to Ch$ 108,255 million from Ch$ 68,946 million as of December 31,
2013. The additional cash reflects the Ch$ 103,894 million capital increase completed during the first quarter.
Non-current assets increased to Ch$ 1,219,890 million from Ch$ 1,084,848 million as of December 31, 2013. The increase was
due primarily to Ch$ 120,537 million of additional investment properties corresponding to the ongoing development of projects
which include growth in Chile of Ch$ 42,669 million, growth in Peru of Ch$ 24,578 million and growth in Colombia of Ch$ 21,771
million.
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
1,201,956
14.7%
176,489
Total Liabilities and Equity
1,378,445
Current liabilities increased by Ch$ 2,319 million while non-current liabilities increased by Ch$ 33,104 million, mainly due to higher
deferred tax liabilities.
Total equity increased by Ch$ 141,067 million due mainly to the capital increase executed during the first quarter of 2014.
FINANCIAL INDICATORS
Units
30.09.2014
31.12.2013
Gross Financial Debt
Ch$ million
458,464
441,378
Net Financial Debt
Ch$ million
350,209
372,432
Covenant
Limit
Net Financial Debt / EBITDA (12 months)
times
4.3
5.0
EBITDA / Financial Expenses (12 months)
times
3.4
3.9
> 2.5
Liabilities / Equity
times
0.8
0.9
< 1.4
Current Liabilities
%
13
13
Non-Current Liabilities
%
87
87
Net financial debt at the end the third quarter of 2014 was $350,209 million. The Company remains comfortably within its financial
covenants, with Liabilities/Equity of 0.8 times as compared to a limit of 1.4 times and EBITDA/Financial Expenses of 3.4 times, above the
limit of 2.5 times.
CONCEPT
Current MM$
30.09.2014
Non Current MM$
30.09.2014
Current MM$
31.12.2013
Non Current MM$
31.12.2013
Financial Leasing
1,329
9,017
1,275
10,585
Bank Loans
46,011
264,401
29,373
270,492
Bonds
5,364
118,446
5,078
116,163
-
13,895
-
52,704
405,760
35,726
Hedge Liabilities
TOTAL
8,412
405,652
CASH FLOW REVIEW
CASH FLOW (CH$ MILLIONS)
30.09.2014
From Operating Activities
36,979
From Investment Activities
(80,424)
30.09.2013
Var. %
Dif.
39,223
-6%
(2,244)
(111,897)
-28%
31,473
From Financing Activities
79,585
43,648
82%
35,937
Eff. of var. exchange rate on cash and cash equi.
3,169
(2,223)
-243%
5,392
Net cash flow during the period
39,309
(31,249)
-226%
70,558
Cash and cash equivalents at beginning of period
68,946
103,782
-34%
(34,836)
Cash and cash equivalents at end of period
108,255
72,533
49%
35,722
Cash flow from operating activities decreased by 6% to Ch$ 36,979 million. Investment activities during the semester generated a negative
cash flow of Ch$ 80,424 million which is explained by the use of cash for the development of new projects and the expansion of existing
properties. Financing activities generated a positive cash flow of Ch$ 79,585 million which is mainly explained by the Ch$ 103,894 million
capital increase that was executed during the quarter.
MAIN FINANCIAL INDICATORS
MAIN FINANCIAL INDICATORS 1
FINANCIAL RATIOS
30.09.2014
Unit
INDICATOR
30.09.2013
Liquidity Level
Current Assets / Current Liabilities
times
2.02
1.99
Leverage Ratio
Total Liabilities / Equity
times
0.78
0.84
Current Liabilities / Total Liabilities
%
13.02
11.93
Non Current Liabilities / Total Liabilities
%
86.98
88.07
EBITDA / Financial Costs*
times
3.43
3.94
Net Profit
Net Profit
Ch$ mill.
57,607
50,374
Basic EPS
Net Profit att. Equity Holders / N° shares - trea. shares
Ch$
34.27
38.42
Return on Equity
Net profit att. Equity Holders / Av. Shareholders Equity*
%
9.24
8.00
Return on Assets
Net profit att. Equity Holders / Average Total Assets*
%
4.01
4.37
Net Profit /Average Operating Assets*
%
5.23
5.46
Dividends Paid Last 12 m. / Last Share Price
%
2.36
2.80
Operating profit / Revenues
%
64.96
66.90
Short Term Debt
Long Term Debt
Interest Coverage Ratio
Return on Operating Assets
Dividend Yield
Gross Profit Margin
1. THE OPERATIONAL AND FINANCIAL INDICATORS PRESENTED ARE CALCULATED BASED ON STANDARDS SET OUT BY THE SUPERINTENDENCIA DE VALORES Y SEGUROS, AND THEY DON´T NECESARRILY
COINCIDE WITH THE CALCULATIONS USED TO CALCULATE THE COMPANY´S DEBT COVENANTS.
* CALCULATED USING RESULTS FROM THE LAST TWELVE MONTHS.
PORTFOLIO 2014
Total GLA (m2)
% Ownership
Owned GLA (m2)
Var.% Total
GLA vs 2013
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%
69,000
83%
57,270
1%
Arauco San Antonio
28,500
51%
14,535
-2%
Arauco Quilicura
32,000
100%
32,000
0%
Arauco Express (Strip Centers)
18,000
51%
9,180
32%
Buenaventura Premium Outlet
19,000
100%
19,000
-5%
6,500
100%
6,500
Nuevo
394,500
91%
359,985
107,500
50%
53,700
29%
7,000
50%
3,500
0%
Larcomar
26,000
100%
26,000
0%
Parque Lambramani
30,000
100%
30,000
7%
Megaplaza Chimbote
28,000
34%
9,380
0%
Mega Express Villa El Salvador
9,000
50%
4,500
0%
Mega Express Chincha
7,000
50%
3,612
-1%
Mega Express Cañete
16,500
50%
8,199
Nuevo
9,500
50%
4,754
Nuevo
Center)
7,500
51%
3,825
50%
Viamíx Chorrillos
4,000
51%
2,040
Nuevo
252,000
59%
149,495
Parque Arboleda*
33,000
30%
10,285
-3%
Parque Caracolí
38,500
55%
21,175
1%
TOTAL COLOMBIA
71,500
44%
31,460
-1%
718,000
75%
540,940
12%
Name
Outlet Mall Concepción
TOTAL CHILE
Megaplaza Norte
Mega Express Villa Chorrillos
Mega Express Barranca
5%
InOutlet Faucett (Lima Outlet
TOTAL PERU
TOTAL **
*PARQUE ARBOLEDA DOES NOT INCLUDE OFFICE TOWERS
**GLA OF MARINA ARAUCO NOT INCLUDED
30%
PROPERTY LEVEL RESULTS
NINE MONTHS 2014
Chile in MMCLP/ Perú in MPEN
Colombia in MMCOP
GLA
Sales
Revenue
EBITDA
9M14
9M13
Var. %
9M14
9M13
Var. %
9M14
9M13
Var. %
115,000
115,200
0%
258,094
242,276
7%
27,099
25,331
7%
Arauco Maipú
75,000
74,000
1%
113,671
103,156
10%
8,346
7,733
31,500
25,000
26%
45,786
45,040
2%
3,190
69,000
68,000
1%
75,210
69,863
8%
Arauco San Antonio
28,500
29,000
-2%
23,840
22,869
Arauco Quilicura
32,000
32,000
0%
31,160
Arauco Express (Stripcenters Chile)
18,000
13,600
32%
19,000
20,000
6,500
TOTAL CHILE
Megaplaza Norte
9M13
Var. %
24,941
23,393
7%
8%
7,970
7,215
10%
3,095
3%
2,431
2,407
1%
10,017
9,758
3%
8,741
8,455
3%
4%
2,611
2,556
2%
1,728
1,758
-2%
19,578
59%
2,323
1,252
86%
1,865
871
114%
9,951
9,683
3%
1,712
1,640
4%
1,015
1,082
-6%
-5%
22,930
20,053
14%
2,324
1,906
22%
1,794
1,401
28%
-
-
1,925
-
-
227
-
-
52
0
-
394,500
376,800
5%
582,569
532,518
9%
57,848
53,271
9%
50,537
46,582
8%
107,500
83,000
30%
799,892
731,182
9%
56,394
45,612
24%
44,767
35,603
26%
7,000
7,000
0%
47,541
41,607
14%
3,184
2,950
8%
2,380
2,070
15%
Larcomar
26,000
26,000
0%
170,576
133,640
28%
24,405
19,654
24%
16,572
12,223
36%
Parque Lambramani
30,000
28,000
7%
106,868
94,057
14%
8,284
7,543
10%
3,386
2,322
46%
Mega Plaza Chimbote
28,000
28,000
0%
154,773
146,058
6%
7,650
7,183
6%
5,123
4,454
15%
9,000
9,000
0%
45,479
36,505
25%
3,844
3,192
20%
2,879
2,251
28%
7,000
7,300
-4%
21,769
12,935
68%
3,144
1,815
73%
2,251
998
126%
Mega Plaza Cañete
16,500
-
-
79,517
-
-
4,046
-
-
2,733
-
-
Mega Plaza Barranca
9,500
-
-
25,969
-
-
3,082
-
-
2,046
-
-
InOutlet Faucett (Lima Outlet Center)
7,500
5,000
50%
32,427
25,047
29%
2,865
1,910
50%
2,464
1,520
62%
Víamix Chorrillos
4,000
-
-
1,406
-
-
-
-
-
-
-
-
252,000
193,300
30%
1,486,216
1,221,032
22%
116,898
89,859
30%
84,601
61,440
38%
TOTAL PERÚ
9M14
954,695
Parque Arboleda
33,000
34,000
-3%
109,779
99,986
10%
13,279
12,709
4%
10,279
10,633
-3%
Parque Caracolí
38,500
38,000
1%
87,257
42,225
107%
11,924
6,253
91%
8,286
3,694
124%
TOTAL COLOMBIA
71,500
72,000
-1%
197,036
142,211
39%
25,203
18,963
33%
18,564
14,327
30%
73,500
0%
NINE MONTHS 2014
Occupancy
Colombia in MMCOP
Monthly sales per m2 *
EBITDA Margin
Monthly revenue per m2*
9M14
9M13
Var. b.p.
9M14
9M13
Var. b.p.
9M14
9M13
Var. %
9M14
9M13
Var. %
97.7%
98.4%
-75
92.0%
92.4%
-36
256,029
248,856
3%
26,882
26,019
3%
Arauco Maipú
96.8%
97.2%
-40
95.5%
93.3%
219
175,156
158,856
10%
12,861
11,908
8%
93.4%
91.3%
214
76.2%
77.8%
-156
171,683
207,803
-17%
11,961
14,280
-16%
97.8%
98.7%
-90
87.3%
86.7%
56
124,257
115,612
7%
16,549
16,148
2%
Arauco San Antonio
93.2%
94.7%
-152
66.2%
68.8%
-260
98,031
91,509
7%
10,739
10,228
5%
Arauco Quilicura
98.8%
97.7%
112
80.3%
69.6%
1075
111,967
99,159
13%
8,345
6,341
32%
83.9%
100.0%
-1610
59.3%
66.0%
-670
84,184
88,760
-5%
14,480
15,033
-4%
92.4%
90.8%
164
77.2%
73.5%
370
137,311
122,021
13%
13,914
11,598
20%
75.3%
-
-
22.8%
-
-
38,508
-
-
4,537
-
-
TOTAL CHILE
95.7%
97.1%
-135
84.4%
84.9%
-44
172,919
168,266
3%
17,171
16,833
2%
Megaplaza Norte
94.7%
92.0%
272
79.4%
78.1%
133
870
1,037
-16%
61
65
-5%
99.3%
99.9%
-64
74.8%
70.2%
459
759
674
13%
51
48
6%
Larcomar
93.5%
89.8%
372
67.9%
62.2%
571
768
626
23%
110
92
19%
Parque Lambramani
94.7%
77.6%
1710
40.9%
30.8%
1009
428
434
-1%
33
35
-5%
Mega Plaza Chimbote
99.9%
100.0%
-8
67.0%
62.0%
497
615
621
-1%
30
31
0%
99.4%
96.0%
337
74.9%
70.5%
437
573
490
17%
48
43
13%
100.0%
95.0%
500
71.6%
55.0%
1663
338
257
32%
49
36
35%
Mega Plaza Cañete
99.9%
-
-
67.5%
-
-
542
-
-
28
-
-
Mega Plaza Barranca
100.0%
-
-
66.4%
-
-
317
-
-
38
-
-
81.0%
88.0%
-698
86.0%
79.6%
646
655
913
-28%
58
70
-17%
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL PERÚ
95.8%
91.3%
450
70.5%
65.3%
524
695
771
-10%
55
57
-4%
Parque Arboleda
92.9%
97.1%
-425
77.4%
83.7%
-626
387,879
343,950
13%
46,919
43,719
7%
Parque Caracolí
86.8%
77.0%
976
69.5%
59.1%
1042
281,142
226,852
24%
38,418
33,597
14%
TOTAL COLOMBIA
89.6%
86.5%
308
73.1%
70.7%
246
332,052
298,240
11%
42,473
39,767
7%
Víamix Chorrillos
*MONTHLY SALES/REVENUE PER M2 FIGURES ARE CALCULATED USING THE SALES/REVENUE OF THE PERIOD DIVIDED BY THE AVERAGE OCCUPIED GLA OF THE PERIOD.
THIRD QUARTER 2014
Colombia in MMCOP
GLA
Sales
3Q14
3Q13
Var. %
3Q14
115,000
115,200
0%
83,443
Arauco Maipú
75,000
74,000
1%
37,220
31,500
25,000
26%
69,000
68,000
Arauco San Antonio
28,500
Arauco Quilicura
EBITDA
Var. %
3Q14
3Q13
Var. %
3Q14
3Q13
Var. %
1%
9,201
8,605
7%
8,484
7,979
6%
36,680
1%
2,810
2,624
7%
2,736
2,432
13%
14,931
15,007
-1%
1,076
1,009
7%
772
701
10%
1%
25,410
23,986
6%
3,427
3,285
4%
3,114
2,936
6%
29,000
-2%
7,296
7,211
1%
840
816
3%
587
561
5%
32,000
32,000
0%
10,621
9,194
16%
806
628
28%
654
444
47%
18,000
13,600
32%
3,877
3,511
10%
612
560
9%
357
374
-5%
19,000
20,000
-5%
7,648
6,947
10%
770
624
23%
616
438
41%
6,500
-
-
1,438
-
-
227
-
-
52
-
-
TOTAL CHILE
394,500
376,800
5%
191,884
184,896
4%
19,769
18,151
9%
17,373
15,865
10%
Megaplaza Norte
107,500
83,000
30%
285,912
245,438
16%
19,477
15,584
25%
16,217
10,996
47%
7,000
7,000
0%
16,782
14,430
16%
1,063
1,038
2%
838
708
18%
Larcomar
26,000
26,000
0%
59,528
47,155
26%
8,624
6,676
29%
6,160
4,128
49%
Parque Lambramani
30,000
28,000
7%
37,775
31,484
20%
2,872
2,584
11%
1,122
881
27%
Mega Plaza Chimbote
28,000
28,000
0%
54,840
52,556
4%
2,647
2,535
4%
1,827
1,652
11%
9,000
9,000
0%
16,355
12,975
26%
1,330
1,107
20%
983
770
28%
7,000
7,300
-4%
7,905
7,624
4%
1,056
879
20%
775
555
40%
Mega Plaza Cañete
16,500
-
-
27,568
-
-
1,612
-
-
1,214
-
-
Mega Plaza Barranca
9,500
-
-
9,622
-
-
1,158
-
-
800
-
-
7,500
5,000
50%
13,830
11,829
17%
1,145
974
18%
1,013
767
32%
Víamix Chorrillos
4,000
-
-
1,406
-
-
-
-
-
-
-
TOTAL PERÚ
252,000
193,300
30%
531,522
423,493
26%
40,982
31,377
31%
30,949
20,456
51%
Parque Arboleda
33,000
34,000
-3%
37,327
34,416
8%
4,490
4,308
4%
3,213
3,627
-11%
Parque Caracolí
38,500
38,000
1%
30,955
23,971
29%
4,067
3,713
10%
2,643
2,656
0%
TOTAL COLOMBIA
71,500
72,000
-1%
68,282
58,387
17%
8,558
8,022
7%
5,856
6,283
-7%
73,500
0%
3Q13
Revenue
82,360
-
THIRD QUARTER 2014
Occupancy
Colombia in MMCOP
Monthly sales per m2 *
EBITDA Margin
Monthly revenues per m2*
3Q14
3Q13
Var. b.p.
3Q14
3Q13
Var. b.p.
3Q14
3Q13
Var. %
3Q14
3Q13
Var. %
97.7%
98.4%
-75
92.2%
92.7%
-51
248,035
252,983
-2%
27,349
26,432
3%
Arauco Maipú
96.8%
97.2%
-40
97.4%
92.7%
469
171,930
169,549
1%
12,982
12,129
7%
93.4%
91.3%
214
71.8%
69.5%
228
148,737
209,522
-29%
10,724
14,087
-24%
97.8%
98.7%
-90
90.9%
89.4%
151
125,942
119,248
6%
16,984
16,332
4%
Arauco San Antonio
93.2%
94.7%
-152
69.9%
68.9%
102
90,546
85,758
6%
10,428
9,704
7%
Arauco Quilicura
98.8%
97.7%
112
81.1%
70.6%
1054
113,615
105,580
8%
8,624
7,212
20%
83.9%
100.0%
-1610
58.3%
66.8%
-848
95,095
90,646
5%
15,004
14,458
4%
92.4%
90.8%
164
80.0%
70.2%
977
139,293
128,720
8%
14,022
11,562
21%
75.3%
-
22.8%
-
-
TOTAL CHILE
95.7%
97.1%
-135
85.5%
84.7%
81
168,107
171,433
-2%
17,319
16,829
3%
Megaplaza Norte
94.7%
92.0%
272
83.3%
74.9%
836
936
1,069
-12%
64
68
-6%
99.3%
99.9%
-64
78.8%
71.5%
729
805
698
15%
51
50
2%
Larcomar
93.5%
89.8%
372
71.4%
61.8%
961
808
654
24%
117
93
26%
Parque Lambramani
94.7%
77.6%
1710
39.1%
34.1%
495
448
453
-1%
34
37
-8%
Mega Plaza Chimbote
99.9%
100.0%
-8
69.0%
66.2%
283
653
659
-1%
32
32
-1%
99.4%
96.0%
337
73.9%
71.1%
280
610
517
18%
50
44
12%
100.0%
95.0%
500
73.4%
65.9%
749
370
370
0%
49
43
16%
Mega Plaza Cañete
99.9%
-
-
75.3%
-
-
559
-
-
33
-
-
Mega Plaza Barranca
100.0%
-
-
69.1%
-
-
338
-
-
41
-
-
81.0%
88.0%
-698
88.5%
78.7%
980
765
863
-11%
63
71
-11%
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL PERÚ
95.8%
91.3%
450
73.4%
65.4%
798
740
797
-7%
57
59
-3%
Parque Arboleda
92.9%
97.1%
-425
71.6%
84.2%
-1264
398,265
354,424
12%
47,909
44,365
8%
Parque Caracolí
86.8%
77.0%
976
65.0%
71.5%
-654
299,891
257,566
16%
39,403
39,901
-1%
TOTAL COLOMBIA
89.6%
86.5%
308
68.0%
77.5%
-949
346,706
307,023
13%
43,451
42,180
3%
Víamix Chorrillos
*MONTHLY SALES/REVENUE PER M2 FIGURES ARE CALCULATED USING THE SALES/REVENUE OF THE PERIOD DIVIDED BY THE AVERAGE OCCUPIED GLA OF THE PERIOD.
HIGHLIGHTS BY COUNTRY
BUCARAMANGA
PEREIRA
CHIMBOTE
BARRANCA
LIMA
CAÑETE
CHINCHA
AREQUIPA
SAN ANTONIO
SANTIAGO
CHILLÁN
CONCEPCIÓN
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 centers through its subsidiary, Arauco Express. Construction continues on El Carmen de Huechuraba
which will open during the fourth quarter of this year and become the company´s 11th strip center. This quarter tenant sales of Arauco Express increased by 10%, income
increased by 9% and EBITDA decreased by 5% due to higher administration expenses.
In Arauco Chillan the 12,500 m2 the expansion of the mall was completed and all commercial space was opened to the public, including the new anchor store Hites, and the
new food court. During the quarter Caffarena, OPV, Rip Curl and Cellairis opened in the new tower of the shopping center. The renovation of the old food court began and
that space will be used for new entertainment options and fashion retailers. The mall was officially inaugurated during the third quarter by members of the local government
and Parque Arauco´s CEO Juan Antonio Álvarez. This quarter, tenant sales in Arauco Chillan decreased by 1%, income increased by 7% and EBITDA increased by 10%.
In Parque Arauco Kennedy, the third quarter brought new improvements in terms of customer services. The Valet Parking service was expanded, enabling faster and easier
access for customers wishing to use the service. At the same time, Parque Arauco began operating innovative interactive kiosks designed to enable customers to quickly sign
up for Arauco Tag, the system that links the Parque Arauco Kennedy parking lot with customers’ highway toll payment system, making parking payment automatic and the
process of entering and exiting the parking lots much more convenient.
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 Americanino, Tua and Planet Sport improving the
a way to keep customers informed of news related to fashion, technology, art and
overall commercial mix of the shopping center. The mall continues to perform above
gastronomy, among other topics. The expansion of the Luxury District continues, which
expectations and this quarter tenant sales increased 16%, revenues increased 28%
will add new stores to the high end mix. The expansion is expected to be completed
and EBITDA increased 47%.
during the first quarter of 2015 and will add 1,000 m2 of GLA. During the quarter,
tenant sales in Parque Arauco Kennedy increased 1%, revenues increased by 7% and
In Arauco San Antonio, during the quarter the recently inaugurated Sonesta Hotel
EBITDA increased by 6%.
fully opened and began to see an increase in visits. The mall is also working on
improving its commercial mix and has signed contracts to welcome new brands
In Mall Arauco Maipu diversification of the commercial mix continued and new stores
during the coming months such as Maui and Sons.
were added including Place Vendome, Audiomusica, Polemic, and GNC, offering an
array of new products and services and further increasing the draw of the mall. During
The expansion of Buenaventura Premium Outlet continues and is going as planned.
the quarter, tenant sales increased 1%, revenues increased 7% and EBITDA increased
Some space has already been handed over to retailers for them to complete the
13%.
finishing of the interior space in order to open at the beginning of next year. During
the quarter tenant sales increased 10%, revenues increased 23% and EBITDA
In Arauco Paseo Estacion we continued remodeling and modernizing not only the
increased by 41%.
physical space but also the commercial mix, adding more highly demanded brands and
remodeling one of the food courts. The mall is also modernizing its signage to help
Mall Outlet Concepcion, which opened during the second quarter of this year,
customers navigate the large mall surrounded by the main train and bus station in
has been well received by the community and has quickly reached an occupancy
Santiago. Tenant sales increased 6%, revenues increased 4% and EBITDA increased
rate of 75.3%. Parque Arauco´s participation in premium outlet malls will further
6%.
be expanded with the opening of Mall Outlet Curauma, expected to be completed
during the fourth quarter of this year. The mall, located near the city of Valparaiso,
During the third quarter of 2014 Mall Arauco Quilicura inaugurated Clinica Megasalud,
will add 7,200 m2 of premium outlet retail to the coastal region of Chile.
adding health care and dental care as services offered at the shopping center for the
ARAUCO QUILICURA - SANTIAGO
PARQUE ARAUCO KENNEDY - SANTIAGO
STRIP CENTER COLON - SANTIAGO
PERÚ
LARCOMAR, LIMA
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
contributing to the company´s EBITDA during the third quarter.
increased by 11% and EBITDA increased by 27% as compared to the same
period in 2013.
In Larcomar, Parque Arauco continued working to position the mall as the
premier shopping center in the city. The upscale restaurant La Trattoria de
During the third quarter of 2014, after the inauguration of its expansion,
Mambrino, a well-known name in Lima, joined the already impressive list
InOutlet Faucett saw its occupancy rate steadily increasing to 81%. During
of upscale restaurants in the mall. In addition, a VIP parking area and Valet
the tenant sales increased 17%, revenues increased 18% and EBITDA
Parking service was incorporated. Finally the Larcomar webpage was re-
increased 32%.
launched with a new look and better information to improve the shopping
experience even before the customer arrives. The efforts to renovate the mall
Performance in all the MegaPlazas throughout Peru was very strong during
can be seen clearly in the numbers - this quarter the tenant sales increased
the quarter and revenues and EBITDA increased in every shopping mall.
26%, revenues increased 29% and EBITDA increased 49%.
In MegaPlaza Norte, new stores were opened including U.S. Polo and the
restaurant Mr. Shao, among others. In MegaPlaza Cañete, Coney Park, a
In Parque Lambramani Parque Arauco continued improving the commercial
store that offers entertainment for children opened. The neighborhood
mix of the mall adding new stores and services including an Easy Taxi stand
shopping center format will be expanded during the fourth quarter with
to help customers find transportation options safely. The mall´s customer
the inauguration of MegaPlaza Pisco in the city of Pisco. The US$14 million
rewards system “Puntos Bonus” gained traction and a number of new stores
project will add 14,000 m2 to the company´s portfolio and will include Plaza
in the mall joined the program to enable purchases in their store help clients
Vea, Estilos and Promart as the anchor stores.
MEGAPLAZA NORTE - LIMA
PARQUE LAMBRAMANI -AREQUIPA
MEGAPLAZA CAÑETE- CAÑETE
COLOMBIA
PARQUE CARACOLÍ, BUCARAMANGA
In Colombia, in Parque Arboleda, the interior of the office tower
continues to be completed and will soon offer high quality, well
equipped space to business looking for commercial space in
Pereira. The shopping center remains the preferred mall in the
coffee region of the country and during the quarter the tenant
sales increased 8%, revenues increased 4% and EBITDA decreased
11%, as the mall began paying territorial taxes in 2014.
In Parque Caracoli, the Parque Arauco team continued improving
the commercial mix of the mall. The North American brand
American Eagle opened its second store in all of Colombia in the
PARQUE LA COLINA, BOGOTA
mall located in Bucaramanga. The mall showed strong growth with
tenant sales increasing 29%, revenues increasing 10% and EBITDA
remaining flat during the quarter.
Construction at Parque La Colina in Bogota is on schedule and
on budget. The shopping center will be Parque Arauco´s largest
asset in Colombia and is expected to open during the first half of
2017. The mall will include Falabella as its anchor store, various
international brands, and a variety of entertainment and service
options in its 63,400 m2 of GLA.
PARQUE ARBOLEDA, PEREIRA
CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEET
CH$ THOUSANDS
30.09.2014
31.12.2013
ASSETS
68,946
Other Current Non-Financial Assets
4,180
Trade Accounts Rec. and Other Rec.
Current Tax Receivable
Total Current Assets
31.12.2013
Current Liabilities
108,255
Accounts Receivable from Rel. Comp.
30.09.2014
LIABILITIES
Current Assets
Cash and Cash Equivalents
CH$ THOUSANDS
Other Current Financial Liabilities
52,704
35,726
3,149
Comm. Cred. and Other Acc. Payable
11,265
25,101
17,566
18,886
Current Acc. Payable to Rel. Parties
2,188
1,902
6,152
4,836
Current Provisions
1,508
2,330
22,404
21,291
Tax Liabilities
5,908
5,083
158,556
117,108
Current Provisions for Employees
3,086
1,999
Other Current Liabilities
1,723
3,923
Total Current Liabilities
78,383
76,064
Other Non-Current Fin. Liabilities
405,760
405,652
Deferred Tax Liabilities
100,194
75,999
Other Non-Current Liabilities
17,736
8,934
Total Non-Current Liabilities
523,689
490,585
TOTAL LIABILITIES
602,072
566,649
Non-Current Liabilities
Non-Current Assets
25,791
26,458
278
808
0
542
Share of Profit (Loss) of Associates Accounted
50,586
49,634
Treasury Shares
Intangible Assets exc. Surplus Value
15,160
14,988
Surplus Value
17,427
15,629
2,922
2,724
1,068,376
947,839
39,350
26,225
Total Non-Current Assets
1,219,890
TOTAL ASSETS
1,378,445
Other Non-Current Non-Fin. Assets
Non-Current Accounts Receivable
Non-Current Acc. Rec. with Rel. Part.
Property, Plant and Equipment
Investment Properties
Deferred Tax Assets
EQUITY
336,925
233,643
(3,737)
(3,737)
Accumulated Earnings (Losses)
294,211
290,550
Premium on New Issued Shares
201
0
4,853
(10,113)
Attrib. to Shareholders of the Company
632,453
510,344
Minority Interest
143,921
124,963
1,084,848
Total Equity
776,374
635,307
1,201,956
TOTAL LIABILITIES AND EQUITY
1,378,445
1,201,956
Issued Share Capital
Other Reserves
CONSOLIDATED FINANCIAL STATEMENTS
CASH FLOW STATEMENT
30.09.2014
30.09.2013
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 of employees
(10,285,269)
(8,142,149)
26%
(1,213,151)
(2,930,464)
-59%
(20,367,874)
(19,412,553)
5%
36,979,136
39,222,732
-6%
CH$ THOUSANDS
Var. %
Net cash flow from OPERATING activities
Income taxes refunded
Other inputs (outputs) in cash
Net cash flow from operating activities
Net Cash flow from INVESTMENT activities
Cash flows used for acquiring subsidiaries or other businesses
(3.512.345)
(11.799.567)
-70%
Loans to related entities
(1.315.958)
(364.421)
261%
Purchases of property, plant and equipment
(530.380)
(642.565)
-17%
Purchases of intangible assets
(138.202)
(3.990)
3364%
Proceeds from related entities
542.191
761.142
-15%
2.569.709
1.218.809
-29%
(84.531.035)
(99.814.401)
111%
6.491.671
(1.252.088)
-618%
(80.424.349)
(111.897.081)
-28%
112,306,650
13,708,498
719%
77,331,149
97,358,336
-21%
285,415
1,797,851
-84%
(80,198,278)
(31,549,023)
154%
0
(1,004,809)
N/A
(2,328,648)
(1,355,084)
72%
(23,900,658)
(18,646,794)
28%
3,089,444
2,347,972
32%
(17,815,653)
(15,196,538)
17%
10,815,939
(3,812,512)
-384%
Net cash flow from financing activities
79,585,360
43,647,897
82%
Net increase (decrease) in cash and cash equivalents, before the effect of changes in the exchange rate
36,140,147
(29,026,452)
-225%
3,168,904
(2,222,811)
-243%
Increase (decrease) in net cash and cash equivalent
39,309,051
(31,249,263)
-226%
Cash and cash equivalents at beginning of period
68,945,796
103,782,289
-34%
108,254,847
72,533,026
49%
Dividends received
Purchases of other long-term assets
Net Cash flow from investment activities
Net cash flow from FINANCING activities
Share Issuance
Proceeds from long term debt
Loans to related entities
Loan Payments
Loan payments to related entities
Financial leasing payments
Dividend payments
Interest received
Interest paid
Effects of variation in the exchange rate on cash and cash equivalents
Cash and cash equivalents at end of period
AGENDA
WELCOME ADDRESS
PARQUE ARAUCO PERÚ
PARQUE ARAUCO PERÚ
CASE STUDIES
-
LAMBRAMANI
LARCOMAR
INOUTLET FAUCETT
PARQUE ARAUCO PERU
EDUARDO HERRERA
CEO PARQUE ARAUCO PERU
INVESTOR DAY
LIMA 2014
‣
INTRODUCTION TO PERÚ
‣
INTRODUCTION TO THE
COMMERCIAL REAL
ESTATE SECTOR
‣
INTRODUCTION TO
PARQUE ARAUCO PERÚ
‣
PERU HAS A GDP OF US$377 BILLION AND A PER CAPITA GDP OF US$12,000
PERÚ HAS A LARGE GDP FOR REGIONAL STANDARDS
US$ Billion, 2014 (F)
Brazil
3.073
Mexico
2.143
927
Argentina
642
Colombia
Venezuela
546
AND A RELATIVELY SMALL PER CAPITA GDP
US$, 2014 (F)
Chile
Argentina
17.925
Venezuela
17.917
Brazil
410
Colombia
Peru
377
Peru
182
Source: Internacional Monetary Fund (IMF)
22.101
Mexico
Chile
Ecuador
23.165
Ecuador
Source: IMF
15.153
13.459
11.989
11.352
‣
PERU HAS GROWN IMPORTANTLY BUT SHOWS SIGNS OF DECELERATION
PERÚ HAS GROWN IMPORTANTLY IN THE LAST 3 YEARS
REAL GDP % CHANGE, AVERAGE 2012-2014
Peru
5,1
BUT SHOWS SIGNS OF DECELERATION
REAL GDP % CHANGE
8,5
4,5
Ecuador
6,5
4,5
Colombia
3,6
2,5
Mexico
Venezuela
1,3
Brazil
1,3
0,7
2010
Source: IMF
5,8
3,9
Chile
Argentina
6,0
Source: IMF
2011
2012
2013
2014
‣
PERU IS EXPECTED TO CONTINUE TO LEADING THE REGIONAL IN TERMS OF GROWTH
PERÚ WILL CONTINUE TO LEAD REGIONAL GROWTH
REAL GDP % CHANGE, AVERAGE 2014-2017
Peru
4,6
Ecuador
4,5
Chile
3,4
Mexico
3,4
Brazil
Argentina
Source: IMF
5,5
5,5
2016
2017
5,1
4,9
Colombia
Venezuela
PERÚ GDP GROWTH EXPECTATIONS
REAL GDP % CHANGE
3,6
1,7
-0,9
-1,6
2014
Source: IMF
2015
‣
‣
INTRODUCTION TO THE
COMMERCIAL REAL
ESTATE SECTOR
‣
INTRODUCTION TO
PARQUE ARAUCO PERÚ
INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR
‣
GLA GROWTH SINCE 2005 HAS BEEN SIGNIFICANT BUT HAS RECENTLY SLOWED
NUMBERS OF SHOPPING CENTERS IN PERU
EVOLUTION OF GLA IN PERU (thousands)
2.244
+22%
1.211
382
489
601
785
71
2.002
1.380
38
964
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
403
93
179
28
24
ANNUAL GROWTH RATE (%)
40
184
19
45
50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ANNUAL VARIATION OF GLA (thousands)
107
14
10
247
60
+24%
1.598
218
30
242
169
112
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
32
28
31
23
23
20
26
25
14
16
12
10
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sources: ACEEP (Asociación de Centros Comerciales y Entretenimiento de Perú) and Apoyo (retail sector report)
‣
THERE IS OPPORTUNITY FOR GROWTH IN THE SECTOR
GLA (M2) PER 1000 INHABITANTS
2013
% OF RETAIL SALES IN SHOPPING CENTERS
2013
2.200
USA
1.369
Canada
940
Australia
Chile
Mexico
197
134
Canada
55,0
USA
51,0
Australia
Chile
25,0
Peru
24,0
24,0
Colombia
74
Mexico
Peru
65
Brazil
Brazil
64
Colombia
Source: International Council of Shopping Centers
65,0
20,0
12,0
Source: International Council of Shopping Centers
‣
PRIVATE CONSUMPTION AND RETAIL SALES ARE EXPECTED TO GROW
GDP (BILLION US$) AND GDP CHANGE (%)
TOTAL, PRIVATE AND PUBLIC INVESTMENT GROWTH (%)
500
400
300
254
259
284
309
333
358
377
403
10
433
6
4
100
2
0
0
INTERNAL DEMAND (MMUS$) AND CONSUMPTION (MMUS$)
Private
Investment
12%
11%
25%
-23%
-9%
26%
11%
23%
6%
0%
16%
8%
6%
-2%
2009
16%
0%
2010
2011
2012
2013
8%
11%
5%
6%
9%
12%
TOTAL
0%
2014 E
2015 E
PRIVATE
PUBLIC
2016 E
Source: Banco Central de Reserva del Perú.
Source: IMF
Private
Consumption
24%
2008
2008 2009 2010 2011 2012 2013 2014E2015E2016E
Domestic
Demand
13%
8
200
US$MM
39%
30%
2008
2009
126,434 125,226
2010
2011
2012
2013
2014E
145,220
160,977
178,865
197,038
203,540
13.6%%
-3,3%
14.9%
7.7%
8.0%
7.0%
3.3%
78,610
82,989
91,595
100,614
110,729
119,966
125,484
8.9%
2.8%
8.7%
6.0%
6.1%
5.4%
4.6%
24,676
22,934
28,735
32,139
37,038
40,584
40,422
23.9%
-9,1%
25.9%
11.0%
15.6%
6.4%
-0,4%
RETAIL SALES (MMUS$) AND RETAIL SALES CHANGE (%)
25
20
15
12,9
14,4
16,9
17,9
18,7
20,9
15
10
5
10
5
0
0
-5
2008
13,8
15,7
19,8
2009
2010 2011
2012
2013 2014E 2015E 2016E
‣
INTRODUCTION TO
PERÚ
‣
INTRODUCTION TO
THE COMMERCIAL
REAL ESTATE SECTOR
‣
INTRODUCTION TO
PARQUE ARAUCO PERÚ
‣
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 REAL ESTATE PENETRATION IN THE COUNTRY
 VERY LOW COMMERCIAL REAL ESTATE PENETRATION IN CITIES OUTSIDE
LIMA
 LOW VARIETY OF FORMATS: MOSTLY REGIONAL SHOPPING CENTERS
‣
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
Acquisitions 10
Greenfields 5
0
1
1
1
2
2006
2007
2008
2009
4
10
5
6
Megaplaza
Norte
Los Portales
Group
Centenario
Group
200.000
100.000
2010
2011
2012
2013
2014
Megaexpress
Chincha
Megaplaza
Chimbote
Megaexpress
Villa
Megaexpress
Villa El
Salvador
Megaplaza
Cañete
Megaexpress
Barranca
100%
Parque Arauco
300.000
0
Megaplaza
Norte
Wiese
Group
11
Lambramani
Lambramani
Larcomar
InOutlet
Faucett
ViaMix
Chorillos
Agreement
to develop
Camino
Real/Parque
El Golf
‣
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 (50%)
Partner
Grupo Wiese (50%)
Megaplaza Norte
Megaplaza Cañete
Format
Format
GLA (m²)
107,500
GLA (m²)
16,500
Partner
Grupo Wiese (50%)
Partner
Grupo Wiese (50%)
InOutlet Faucett
Format
Outlet Malls
Format
GLA (m²)
7,500
GLA (m²)
7,000
Partner
Los Portales S.A. (49%)
Partner
Grupo Wiese (50%)
Larcomar Fashion Center
Parque Lambramani
Format
Format
GLA (m²)
26,000
GLA (m²)
30,000
Partner
100% Parque Arauco
Partner
100% Parque Arauco
ViaMix Chorrillos
Format
Format
Strip Centers
Format
GLA (m²)
7,000
GLA (m²)
4,000
GLA (m²)
9,000
Partner
Grupo Wiese (50%)
Partner
Los Portales S.A. (49%)
Partner
Grupo Wiese (50%)
‣
WE PARTICIPATE IN FOUR DIFFERENT FORMATS
REGIONAL SHOPPING CENTERS
4
NEIGHBORHOOD SHOPPING CENTERS
5 Neighborhood Shopping Centers
Regional Shopping Centers
49,000 m²
191,500 m²
STRIPCENTERS
OUTLETS
1 Strip Center
4,000 m²
1 Outlet Mall
7,500 m²
‣
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
26,000 m2 of GLA
Lima population:
9.500.000 residents
48.4%
16.0%
3.9%
1.3%
D
E
100.0%
30.4%
A
B
C
TOTAL
Source: Asociación Peruana de Empresas de Investigación de Mercados - APEIM
EXAMPLE #2: NEIGHBORHOOD SHOPPING CENTER IN A MIDDLE INCOME/SMALL GEOGRAPHIC AREA
MEGAPLAZA BARRANCA
9,500 m2 of GLA
Barranca population:
140.000 residents
50.3%
2.7%
A
21.5%
3.8%
100.0%
D
E
TOTAL
21.8%
B
C
Source: Asociación Peruana de Empresas de Investigación de Mercados - APEIM
‣
FUTURE GROWTH
WE HAVE ANNOUNCED PLANS TO INVEST
US$ 210MM IN PERU
WE CURRENTLY HOLD AN IMPORTANT
LANDBANK OF MORE THAN 250,000 M2
15.000 10.085 2.960 264.790
210
Inversión SCP
Total
Total
Colonial
La Molina
Lurin
Parque El Golf
Inversión IPSA
Terrenos IPSA
138
169.745 67.000
72
ADDITIONALLY:
 WE ANNOUNCED AN AGREEMENT WITH GRUPO CENTENTARIO TO DEVELOP A NEW PROJECT THAT WILL
INTEGRATE OUR PIECE OF LAND IN SAN ISIDRO IN LIMA (PARQUE EL GOLF) WITH THE CAMINO REAL
COMMERCIAL CENTER CURRENTLY OWNED BY GRUPO CENTENARIO
 WE ANNOUNCED A MEMORANDUM OF UNDERSTANDING TO PURCHASE EL QUINDE SHOPPING CENTERS IN
ICA AND CAJAMARCA, AND 143,000 M2 OF LANDBANK, FOR A TOTAL ENTERPRISE VALUE OF US$100MM
AGENDA
WELCOME ADDRESS
PARQUE ARAUCO PERÚ
PARQUE ARAUCO PERÚ
CASE STUDIES
-
PARQUE LAMBRAMANI
LARCOMAR
INOUTLET FAUCETT
CASE STUDY
PARQUE LAMBRAMANI
EDUARDO HERRERA
INVESTOR DAY
LIMA 2014
‣
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:
Arequipa was the second largest city in Perú with a
population of almost 800,000
-
1 Plaza Vea
-
1 Falabella
-
1 Maestro Home Center
‣
IN 2009, PARQUE ARAUCO BEGAN DEVELOPING A SHOPPING CENTER IN AREQUIPA
‣
FIVE REGIONAL SHOPPING CENTERS HAVE OPENED SINCE 2010
Arequipa
Shopping
Center
Parque Lambramani:
30.000 m2 of GLA
Opened in 2010
Real Plaza
Arequipa
Real Plaza Arequipa:
25.000 m2 of GLA
Opened in 2010
Open Plaza
Arequipa
Parque
Lambramani
Mall Aventura
Plaza Arequipa
Open Plaza Arequipa
42,000 m2 of GLA
Opened in 2010
Aventura Plaza Arequipa:
68.000 m2 of GLA
Opened in 2011
Arequipa Shopping Center
30.000 m2 of GLA
Expected to open in 2014
‣
EXCLUDING LIMA, AREQUIPA HAS THE HIGHEST COMMERCIAL REAL ESTATE PENETRATION IN
PERU
M2 GLA
GLA/1000 HAB.
Arequipa
176
Piura
143
La libertad
138
Ica
100
Arequipa
141
Ucayalí
135
Ica
131
Piura
79
77
Lambayeque
64
La libertad
Ucayalí
64
Lambayeque
52
Cajamarca
62
Lima provinces
50
Lima provinces
Cajamarca
46
Junín
40
41
Huánuco
34
Áncash
32
Junín
30
Huánuco
28
Áncash
28
Puno
25
Cusco
19
Cusco
24
Puno
18
San Martín
San Martín
3
1 Source: Asociación de Centro Comerciales
del Perú, (ACCEP) 2013
1 Source: ACE Perú 2013
3
‣
WE CREATED A PLAN TO FACE THE HIGH COMPETITION
TAKING INTO CONSIDERATION THE SCENARIO OF
HIGH COMPETITION…
…WE CREATED A PLAN TO BRING MORE
CLIENTS TO OUR SHOPPING CENTER
1.1
Concentration of Anchor Stores
2.2
Commercial and Marketing Plan
- Purchase awards
- Events
- Media campaign
- Night sales
- Tenant support
‣
1
WE FOUND AN OPPORTUNITY to IMPROVE THE MIX OF ANCHOR STORES IN LAMBRAMANI
WE UNDERSTOOD THAT GIVEN THE COMPETITIVE
SCENARIO A WONG SUPERMARKET WAS NOT THE
BEST ANCHOR STORE FOR LAMBRAMANI
WE CHANGED THE TWO LEVEL WONG
SUPERMARKET INTO A METRO
SUPERMARKET ON THE FIRST FLOOR…
…AND A PARIS DEPARTMENT STORE
ONTHE SECOND FLOOR
‣
2
COMMERCIAL AND MARKETING PLAN: PURCHASE AWARDS
AUTOLIQUIDABLE DE
VAJILLA
• DURATION: March 15 - 31
AUTOLIQUIDABLE DE
MONEDEROS RENZO COSTA
• DURATION: April 28 – May 9
AUTOLIQUIDABLE DE
TARJETEROS RENZO COSTA
• DURATION: May 10-30
‣
2
COMMERCIAL AND MARKETING PLAN: PURCHASE AWARDS
CELEBRAMOS TU PRIMERA
COMPRA CON BONUS
• DURATION: Ongoing
AUTOLIQUIDABLE DE
ANIS NAJAR
• DURATION: August 1-15
AUTOLIQUIDABLE DEL CINE
• DURATION: September 5 October 15
‣
COMMERCIAL AND MARKETING PLAN: FEBRUARY EVENTS
2




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.
‣
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.
‣
COMMERCIAL AND MARKETING PLAN: JUNE EVENTS
2




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.
‣
2
COMMERCIAL AND MARKETING PLAN: SEPTEMBER EVENTS




Casting for Perú Tiene Talento.
Shopping Day.
Gianmarco tribute with Joel Cuba.
Ecológica marathon
‣
2
COMMERCIAL AND MARKETING PLAN: NIGHT SALES
‣
2
COMMERCIAL AND MARKETING PLAN: TENANT SUPPORT
Book Exhibition: support for Zeta Bookstore
‣
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 others.
‣
3
LAMBRAMANI SALES HAVE INCREASED GRADUALLY IN THE LAST YEARS
TENANT SALES
MMPEN
+13%
146
129
133
2012
2013
*October 2013 - September 2014
+10%
2014*
CASE STUDY
LARCOMAR
EDUARDO HERRERA
INVESTOR DAY
LIMA 2014
‣
LARCOMAR CASE STUDY
LARCOMAR WAS BUILT IN 1998 BY GRAÑA & MONTERO HOLDING
ABOUT LARCOMAR
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. Miraflores is also one of the most popular tourist
destinations in Lima as there are many hotels and tourist
attractions in the area.
Since its inauguration, Larcomar has been one of the most
emblematic spots in Lima, known for its architectural
uniqueness. It has also been a hotspot for people visiting
the city and is listed in many international guide books on
Lima.
Before Parque Arauco took control, the shopping mall
performed below expectations. The commercial mix of
the mall was tailored primarily for tourists, 50% of the
mall´s GLA was dedicated to entertainment such as movie
theaters and night clubs. But given the mall´s design,
location and international draw, it was clear this shopping
center held much more potential.
LARCOMAR DURING THE NINETIES
‣
LARCOMAR CASE STUDY
PARQUE ARAUCO ACQUIRED LARCOMAR IN 2009
ABOUT THE ACQUISITION
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 and entertainment
center strongly oriented to tourists as a result of a weak
offering of retail brands and the market situation.
The 26,000 m2 mall was an attractive acquisition option
for Parque Arauco. It was a well-built project in a prime
location within a very attractive sector of Lima. The socioeconomic profile of Miraflores would provide exposure for
Parque Arauco to a different type of customer than in
Megaplaza Norte, which was in a predominately middle
class area in northern Lima.
During 2009 Larcomar registered tenants sales of US$ 50
million and EBITDA of US$ 5,7 million. Parque Arauco
finalized the purchase of 100% of Larcomar in July of
2010 for US$ 58 million.
LARCOMAR TODAY
‣
LARCOMAR CASE STUDY
A PLAN WAS DEVELOPED TO RENOVATE AND IMPROVE THE EMBLEMATIC SHOPPING CENTER
LARCOMAR WAS DEPRECIATED AND HAD A POOR
TENANT MIX TARGETED MAINLY AT TOURISTS
A PLAN WAS CREATED TO REPOSITION
LARCOMAR
One of the major potential points for improvement in
Larcomar was the profitability of the commercial mix.
Parque Arauco wanted to transform Larcomar into not
just the most popular mall for tourists but also the first
option of the residents of the surrounding areas of
Miraflores, San Isidro, Barranco and San Borja. This
meant changing the commercial mix and offering more
international retail brands as well as evaluating the
best placements of the stores within the mall.
1.1
Face Lifting
2.2
Commercial Mix
3.3
Repositioning
As the commercial team was working on the tenant
mix, the engineering team was looking for ways to
improve the look of the mall. Many renovations were
needed for the central plazas, service areas, mall accesses,
and parking lots. The façade floors, lighting system and
signage also needed to be updated.
LARCOMAR CASE STUDY
‣
1
FACELIFTING: BEFORE AND AFTER
LARCOMAR CASE STUDY
‣
1
LARCOMAR CASE STUDY
‣
1
FACE LIFTING: LARCOMAR TODAY
LARCOMAR CASE STUDY
‣
2
CHANGE IN THE COMMERCIAL MIX: NEW BRANDS
LARCOMAR CASE STUDY
‣
2
CHANGE IN THE COMMERCIAL MIX: NEW RESTAURANTS
LARCOMAR CASE STUDY
‣
2
CHANGE IN THE COMMERCIAL MIX: ENTERTAINMENT ALTERNATIVES
LARCOMAR CASE STUDY
‣
3
REPOSITIONING: PAPER MEDIA SUMMER 2014
LARCOMAR CASE STUDY
‣
3
REPOSITIONING: PAPER MEDIA MOTHER’S DAY 2014
LARCOMAR CASE STUDY
‣
3
REPOSITIONING: NEWSLETTER SUMMER 2014
LARCOMAR CASE STUDY
‣
3
REPOSITIONING: NEWSLETTER MOTHER’S DAY 2014
LARCOMAR CASE STUDY
‣
3
REPOSITIONING: ONLINE MEDIA
‣
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
17,1
2010
*October 2013 – September 2014
17,9
2011
19,1
2012
18,1
2013
2014*
‣
LARCOMAR STUDY CASE
FUTURE PLANS: H&M WILL ENTER LARCOMAR IN 2016
CASE STUDY
INOUTLET FAUCETT
EDUARDO HERRERA
INVESTOR DAY
LIMA 2014
‣
INOUTLET FAUCETT CASE STUDY
IN 2008 PARQUE ARAUCO ENTERED THE OUTLET FORMAT BY ACQUIRING BUENAVENTURA
PREMIUM OUTLET IN CHILE
ABOUT THE ACQUISITION
BUENAVENTURA TODAY
‣
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%
‣
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
‣
A PLAN WAS MADE TO RENOVATE AND IMPROVE THE OUTLET MALL
LIMA OUTLET CENTER WAS DEPRECIATED AND HAD
A POOR TENANT MIX
WE CREATED A PLAN TO REPOSITION
LIMA OUTLET CENTER
Parque Arauco saw an opportunity to improve the
profitability of the shopping mall by improving the
tenant mix. Parque Arauco wanted to make the Lima
Outlet Center the best outlet in Lima. This meant
changing the commercial mix, offering more space to
international retail dedicated brands and evaluating
the best placement of the stores within the mall.
1.1
Face Lifting
2.2
Commercial Mix
3.3
Repositioning
As the commercial team was working on the tenant mix
the engineering team was looking for ways to expand
and improve the mall. Many improvement were needed
including building a pedestrian footpath and
underground parking lots.
‣
1
‣
1
FACELIFTING: PEDESTRIAN FOOTPATH
‣
1
FACELIFTING: UNDERGROUND PARKING LOT
‣
1
FACELIFTING: EXPANSION OF 2,000 M2 OF GLA
‣
2
COMMERCIAL MIX: NEW BRANDS
‣
2
COMMERCIAL MIX: NEW BRANDS
‣
2
COMMERCIAL MIX: FIRST FLOOR LAYOUT
‣
2
COMMERCIAL MIX: SECOND FLOOR LAYOUT
‣
3
REPOSITIONING: NEW BRAND (FROM “LIMA OUTLET CENTER” TO “INOUTLET FAUCETT”)
‣
3
REPOSITIONING: ADVERTISING DISPLAY PANELS
‣
3
REPOSITIONING: RADIO CAMPAIGN
‣
3
REPOSITIONING: ONLINE CAMPAIGN
‣
3
REPOSITIONING: ONLINE CAMPAIGN
AGENDA
WELCOME ADDRESS
PARQUE ARAUCO PERÚ
PARQUE ARAUCO PERÚ
CASE STUDIES
-
LAMBRAMANI
LARCOMAR
INOUTLET FAUCETT
NEIGHBORHOOD
SHOPPING CENTERS
I N V E S TO R D AY
LIMA
NOVEMBER 2014

introduction to parque arauco

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