Investor Presentation

Investor Presentation
August 2012
years
Parque Arauco S.A.
www.parauco.com
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 o 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
estimates 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.
Contents
> Investment considerations
> Projects Summary
> Outlook of Parque Arauco
> Projects under construction
Contents
> Investment considerations
> Projects Summary
> Outlook of Parque Arauco
> Projects under construction
Investment
Considerations
5
I) Unique investment vehicle in the region
General background1
Shareholder structure3
Summary table
2011
Total revenues (US$ MM)
173
EBITDA (US$ MM)
122
EBITDA margin (%)
Insurance
Companies
0.1%
70.9%
Net income (US$ MM)
86
Net profit margin (%)
49.9%
Net financial debt (US$ MM)
409
Current liabilities (%)
14%
Long term liabilities (%)
86%
Market Cap: 1,340 (US$ MM)
Number of Shares: 702.7 MM
Free Float: 53.3%
Others
14.5%
Mutual Funds
5.8%
Controller
Group
26.0%
Investment
Funds
14.1%
Said Yarur
Family
9.3%
Brokers
18.8%
Pension Funds
8.3%
Abumohor
Family
3.2%
Source: Parque Arauco
(3) End of July 2012 data. Free Float excludes Controller Group, Said
Yarur Family, Abumohor Family and Pension Funds
(1) Exchange rate CLP/USD 500
(2) GLA: Gross Leasable Area
Leasable Area (Total GLA)
Revenues4 2011 (%)
3.3%
6.1%
19.5%
Presence in Chile, Peru and Colombia. Tenant
sales 2011 > US$ 2,200 million
Indicator/Country
CHILE
PERÚ
COLOMBIA
GLA (m2)
421,000
144,000
34,000
Occupancy (%)
98%
97%
93%
Tenant sales 2011 (US$
MM)
1,750
470
70
8
4
1
23.8%
Total
604,000 m²
Total 173
US$ MM
70.0%
77.2%
Chile
6
CHILE
(4)
Perú
PERU
Considers Parque Arauco’s consolidated revenues
Col
Shopping Centers in
operation
COLOMBIA
Note: end of december 2011 data
II) Latam business and diversification
Country
Format
GLA 2Q 2012
COLOMBIA
PERÚ
CHILE
Regional Malls:
Parque Arboleda
34.000
Regional Malls:
MegaPlaza
Larcomar
Parque Lambramani
MegaPlaza Chimbote
83.000
26.000
28.000
28.000
MegaStripcenters
Mega Chorrillos
Mega Villa El Salvador
7.000
9.000
Regional Malls:
Parque Arauco Kennedy
Mall Arauco Maipú
Plaza el Roble
Paseo Arauco Estación
Arauco San Antonio
Arauco Quilicura (Sodimac)
Marina Arauco
Mall Center Curico
Neighbourhood Malls, Stripcenters & Outlets:
Boulevard Marina
Arauco Express (Stripcenters Chile)
108.000
64.000
25.000
68.000
29.000
9.700
60.000
50.000
12.000
12.000
7
TOTAL
652.700
III) History of value creation and good performance
Sustained Growth1
Revenues evolution1
EBITDA (US$ MM)
Total Revenues (US$ MM )
CAGR 24%
CAGR 29%
200
120
173
150
100
135
146
80
121
100
60
78
50
49
86
40
55
20
0
2005
2006
2007
2008
2009
2010
2011
Revenues 2012
45
2005
2006
104
2009
2010
60
(2) 2005-2008
2007
2008
figures in Chilean GAAP, adjusted to be comparable under IFRS
EBITDA/EBITDA Margin (CLP$ MM,%)
18%
47.195
39.930
2Q-2011
8
2011
EBITDA 2012
Total Revenues (CLP$ MM)
20.223
122
0
(1) Revenues
reclassified in new accounting criterion. 2005-2008 figures in Chilean GAAP,
adjusted to be comparable under IFRS
Exchange rate CLP/USD 500
42
99
24.232
2Q-2012
6M-2011
6M-2012
17%
38.000
33.000
28.000
23.000
18.000
13.000
8.000
3.000
-2.000
-7.000
Ebitda
14.315
2Q-2011
33.502
28.680
17.254
2Q-2012
6M-2011
6M-2012
IV) Aggressive investment plan in short term
COLOMBIA
PERÚ
GLA 1Q 2012
GLA 4Q 2012
Regional Malls:
Parque Arboleda
Bucaramanga
34.000
34.000
Regional Malls:
Megaplaza
Larcomar
Parque Lambramani
Megaplaza Chimbote
83.000
26.000
28.000
83.000
26.000
28.000
28.000
7.000
7.000
9.000
MegaStripcenters
Mega Chorrillos
Villa en Salvador
CHILE
Regional Malls:
Parque Arauco Kennedy
Mall Arauco Maipú
Plaza el Roble
Paseo Arauco Estación
Arauco San Antonio
Arauco Quilicura
Marina Arauco
Mall Center Curico
Neighbourhood Malls, Stripcenters & Outlets:
Boulevard Marina
Arauco Express Pajaritos
Negocio de Stripcenters
Buenaventura Outlet Mall
9
TOTAL
108.000
64.000
25.000
68.000
29.000
9.700
60.000
50.000
108.000
64.000
25.000
68.000
29.000
9.700
60.000
50.000
12.000
5.000
12.000
12.000
20.000
608.700
672.700
Growth in GLA
at the end of
2012:
10.5%
V) High occupancy rates
Parque Arauco’s Shopping Centers
Shopping Center
Total GLA
Stake (%)
Own GLA
Occupancy
Parque Arauco Kennedy
108,000
100.0%
108,000
99.7%
Arauco Maipú
64,000
100.0%
64,000
96.2%
Plaza El Roble
25,000
100.0%
25,000
98.0%
Paseo Arauco Estación
68,000
83.0%
56,440
98.5%
Arauco San Antonio
29,000
51.0%
14,790
98.1%
Arauco Quilicura (Sodimac)
9,700
100.0%
9,700
100.0%
Arauco Express (Stripcenters)
12,000
100.0%
6,120
98.4%
Marina Arauco
60,000
33.3%
20,000
99.6%
Boulevard Marina Arauco
12,000
33.3%
4,000
96.2%
Mall Center Curicó
50,000
33.3%
16,667
99.2%
437,700
74.2%
324,717
98.6%
Megaplaza Norte
83,000
50.0%
41,500
99.3%
Mega Express Villa
7,000
50.0%
3,500
97.0%
Larcomar Fashion Center
26,000
100.0%
26,000
90.0%
MegaPlaza Chimbote
28,000
33.5%
9,380
87.3%
Mega Express Villa el Salvador
9,000
50.0%
4,500
75.5%
Parque Lambramani
28,000
60.0%
16,800
92.0%
181,000
58.7%
101,680
93.8%
34,000
30.3%
10,285
93.1%
TOTAL COLOMBIA
34,000
30.3%
10,285
93.1%
TOTAL
652,700
67.6%
436,682
96.7%
TOTAL CHILE
TOTAL PERU
Parque Arboleda*
10
(*) Only
including square meters from the shopping center
VI) Stable Revenues, contracts and visitors
Stable Revenues Structure
Revenues Composition (Fixed/Variable) (%, 2011)
Contracts Expiration
(Based in % of GLA )
15%
<= 1 year
8%
2 to 3 years
6%
3 to 4 years
70%
>= 4 years
Source: Parque Arauco
GLA & Rental Revenues Composition
11
Count of Visitor
(Total Visitor 2010 v/s 2011, in million)
2011
2010
Var%
CHILE
120.4
107.3
12.2%
PERÚ
58.0
49.4
17.3%
TOTAL
182.7
156.8
16.5%
VII) Solid financial situation
Net financial debt
Debt repayment schedule
Financial debt amortization (US$ MM )
736
(US$ MM)
Cash: 248
658
209
590
181
579
531
514
538
531
489
409
70
48
68
74
72
2-3
years
3-4
years
4-5
years
12
6
0-3
3-6
6-12
1-2
months months months years
5-10
years
10-20
years
Mar‐10 Jun‐10
Sep‐10
Dic‐10 Mar‐11 Jun‐11
Sep‐11
Dic‐11
Jun‐12
Note: Exchange rate CLP/USD 500
Note: Exchange rate CLP/USD 500
Financial covenants and relevance indicators
(Last 12 months reported)
6
5.1
5.1
5
4
4.6
3.9
3.9
3.7
3
3.7
3.7
3.5
3.6
0.85
0.85
3.9
3.6
3.6
3.6
3.6
3.3
3.4
3.4
3.4
3.3
0.83
0.91
0.91
0.91
0.88
3.7
3.7
3.5
3.5
0.86
0.82
Covenant
> 2.5 times
2
1.06
1
1.05
0.94
Covenant
< 1.4 times
0
12
Liabilities/(Equity + Min Int.) EBITDA/Financial Expenses Net Financial Debt/EBITDA
VIII) Markets with high growth potential
Positive prospects for commerce
Real private consumption growth (%, 2011-2012E)
Shopping Centers market share1
Controlled inflation
(%, 2012e)
9.4%
(%, 2011 )
3.6%
26.0%
6.2%
21.0%
5.3%
2.5%
2.5%
12.0%
Chile
Colo
Perú
CHILE
COLOMBIA
PERU
Source: LarrainVial
Chile
CHILE
Colo
COLOMBIA
Perú
Chile
PERU
Source:
Chile: Banco Central de Chile
Perú: Banco Central de Reserva del Perú
Colombia: Banco de al República de Colombia
CHILE
(1)
Colo
COLOMBIA
Perú
PERU
In relation to total sales of trade in formal market.
Source: Parque Arauco, ICSC
GDP per capita
(USD, ppp)
CHILE
COLOMBIA
PERU
13
Source: IMF
VIII) Markets with high growth potential
Commerce Sales, Consumer Confidence & Loans
Variation in 12 months (%,)
Consumer Loans
Penetration in department stores, supermarkets
and home improvement stores by country in LATAM
m2 for 1,000 inhab and GDP per capita (USD)
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
PERÚ
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
COLOMBIA
14
Penetration in Supermarkets
(m2 for 1,000 inhab.)
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
CHILE
Penetration in H. I. Stores
(m2 for 1,000 inhab.)
Commerce Sales
Penetration in D. Stores
(m2 for 1,000 inhab.)
Consumer Confidence (right axis)
Department
Stores
GDP per capita (USD)
Supermarkets
GDP per capita (USD)
Home
Improvement
Stores
GDP per capita (USD)
Source:INE, ADIMARK, DINE, INEI, S. Financiera de Colombia, SBIF and Larrain Vial
Source: LarrainVial
IX) Powerfull Landbank
106 mm$USD, 60 ha available, 174 $USD / m2 on average
Colombia
Parque Arauco owns a strategic land
bank that ensures it’s future growth
BARRANQUILLA
Cost (US$ MM)
Surface (m² )
8
75,000
BOGOTÁ
Cost (US$ MM)
Surface (m² )
33
Peru
34,000
PARQUE EL GOLF
Cost (US$ MM)
BUCARAMANGA
Cost (US$ MM)
Surface (m² )
Surface (m² )
12
13,000
Surface (m² )
Chile
4
70,000
SAN JUAN LURIGANCHO
ARAUCO QUILICURA
Surface (m² )
15,000
LA UNIÓN
Cost (US$ MM)
Cost (US$ MM)
8
13
72,000
Cost (US$ MM)
Surface (m² )
4
110,000
OTHERS IN PERU
Cost (US$ MM)
QUILICURA 2
Cost (US$ MM)
Surface (m² )
15
Surface (m² )
3
26,000
21
193,000
IX) Powerfull Landbank
106 mm$USD, 60 ha available, 174 $USD / m2 on average
Colombia
Parque Arauco owns a strategic land
bank that ensures it’s future growth
BARRANQUILLA
Cost (US$ MM)
Surface (m² )
8
75,000
BOGOTÁ
Cost (US$ MM)
Surface (m² )
33
BUCARAMANGA
Cost (US$ MM)
Surface (m² )
Peru
34,000
12
13,000

PARQUE EL GOLF
Cost (US$ MM)
Surface (m² )
Surface (m² )
ARAUCO QUILICURA
Cost (US$ MM)
Surface (m² )
13
72,000

15,000
LA UNIÓN
Cost (US$ MM)
Chile
8
4
70,000
SAN JUAN LURIGANCHO
Cost (US$ MM)
Surface (m² )
4
110,000
OTHERS IN PERU
Cost (US$ MM)
QUILICURA 2
Cost (US$ MM)
Surface (m² )
16
Surface (m² )
3
21
193,000

26,000
Land included in current invesment plan
Contents
> Investment considerations
> Projects Summary
> Outlook of Parque Arauco
> Projects under construction
> Summary of current Investment Plan
PIPELINE PARQUE ARAUCO 2012 - 2013
Project Name
Country
Villa el Salvador
Chimbote
Buenaventura Outlet
Quilicura
Falabella in Arauco Maipú
Expansion El Roble ‐ Chillán
Boulevard IV Kennedy
Bucaramanga
Expansion Marina Arauco
Mega Express Chincha
Other Proyects in Perú
Others, Expansions & CAPEX
Perú
Perú
Chile
Chile
Chile
Chile
Chile
Colombia
Chile
Perú
Perú
Chile
TOTAL
18
Status
Opened in april 2012
Opened in april 2012
Under Due Diligence
Under Construction
Under Construction
Under Construction
Under Construction
Under Construction
Under Construction
Under Construction
Under Development / Study Under Development / Study MM$USD
Total
% of
Stake
TOTAL
GLA
50.0%
33.5%
100.0%
100.0%
100.0%
100.0%
100.0%
55.0%
33.3%
50.0%
50.0%
100.0%
9,000
28,000
20,000
29,000
14,000
12,500
5,000
30,000
30,000
7,500
51,500
11
26
32
50
15
20
24
100
60
10
78
24
236,500
450
Investment
Contents
> Investment considerations
> Projects Summary
> Outlook of Parque Arauco
> Projects under construction
> Outlook 2012
Leasable area growth
11%
Total GLA (m²)
800,000
673,000
400,000
604,000
585,000
600,000
353,000
200,000
66%
0
2007*
CHILE
2010*
2011
PERU
2012e
COLOMBIA
EBITDA Outlook
EBITDA (mm $Ch)
103%
75,000
67,350‐69,200
61,227
60,000
10% ‐ 13%
52,062
45,000
18%
30,112
30,000
15,000
20
*In 2010 Parque Arauco sold his participation in Alto
Palermo (250,000 m2). The GLA from Argentina is not
included in this graphics to make it comparable.
0
2007*
2010*
2011
2012e
New GLA for 2013
GLA 1Q 2012
GLA 2Q 2013
COLOMBIA
Regional Malls:
Parque Arboleda
Bucaramanga
34,000
34,000
30,000
PERÚ
Regional Malls:
Megaplaza
Larcomar
Parque Lambramani
Megaplaza Chimbote
83,000
26,000
28,000
83,000
26,000
28,000
28,000
7,000
7,000
9,000
7,500
MegaStripcenters
Villa Chorrillos
Villa en Salvador
Chincha
CHILE
Regional Malls:
Parque Arauco Kennedy
Mall Arauco Maipú
Plaza el Roble
Paseo Arauco Estación
Arauco San Antonio
Arauco Quilicura
Marina Arauco
Mall Center Curico
Neighbourhood Malls, Stripcenters & Outlets:
Boulevard Marina
Arauco Express Pajaritos
Stripcenters Business in Chile
Buenaventura Outlet Mall
21
TOTAL
108,000
64,000
25,000
68,000
29,000
9,700
60,000
50,000
12,000
5,000
23.6%
Growth in GLA
at 1st half of
2013
113,000
78,000
25,000
68,000
29,000
33,000
60,000
50,000
12,000
12,000
20,000
608,700
752,500
Contents
> Investment considerations
> Projects Summary
> Outlook of Parque Arauco
> Projects under construction
> Arauco Quilicura. Santiago, Chile
Main stores and attractions
Department stores
Home improvement (already opened)
Food Court
Restaurants
Entertainment
Cinema
Under construction
General description
Total GLA: 33,000 m2
E. Total Investment1: US$ 50 million
Opening date: 2013
Steady EBITDA : US$ 5 million
Quilicura’s population: 126,518
23
(1) Parque
Arauco owns 100% of Arauco Quilicura
The pictures are only for reference, final design could be different
> Agreement to buy an operating Outlet mall in Santiago
General description
Total GLA: 20,000 m2
Total Land: 40,000 m2
E. Total Investment: US$ 32 million
PASA stake: 100%
Expected EBITDA : US$ 4,7 million in 12
months1
Operating asset
Main stores and attractions
42 small stores
Food Court
18 warehouses
Main Premium Outlet in Chile
International Brands
(1) Parque
24
Arauco will start the financial consolidation in September of 2012 with 100% of Buenaventura Outlet Mall
> 12,500 m2 additional GLA in Plaza el Roble - Chile
Main stores and attractions
New Department store: Hites
Expansions in anchor stores
More Fashions small stores
Better Food Court
New Entertainment
Renew Cinema
Operating asset
General description
Addition GLA: 12,500 m2
E. Total Investment1: US$ 20 million
Opening date: 1Q 2014
Steady new EBITDA : US$ 2 million
25
> Expansion Mall Arauco Maipú - Chile
Mall Arauco Maipú
Project: Falabella in MAM
Total GLA: 14.000 m2
E. Total Investment1: US$ 15 million
Opening Date: 1Q 2013
Under construction
Current Status
As of July 2012, construction of the
fourth stage of expansion is 67%
complete.
26
> Expansion Parque Arauco Kennedy - Chile
Parque Arauco Kennedy
Project: Boulevard IV
Total additional GLA: 5.000 m2
E. Total Investment1: US$ 25 million
Opening Date: 1Q 2013
Under construction
Main Features
The new area will consist of a “Luxury
District”, entertainment, restaurants,
and high end retail.
27
> Expansion Marina Arauco - Chile
Marina Arauco
Project: Expansion, new stores
Total GLA: 30.000 m2
E. Total Investment: US$ 60 million
Opening Date: 2H 2014
Under construction
Main Features
The new area will consist of a
Supermarket, small stores, services
areas and entertainment
28
> Mega Express Chincha. Chincha, Perú
General description
Total GLA: 7,500 m2
E. Total Investment1: US$ 10 million
Opening date: 1Q 2013
Steady EBITDA : US$ 1 million
Under construction
Key Features
•Neighborhood Shopping Center
•Joint venture with partners in Peru: Wiese Family
•Supermarket, anchor stores, small stores
29
(1) Parque
Arauco’s share in Mega Express Chincha will be 50%
> Bucaramanga. Bucaramanga, Colombia
Main stores and attractions
Department stores
Small stores
Food Court
Restaurants
Entertainment
Cinema
Current Status
64% complete
Under construction
General description
Total GLA: 30,000 m2
E. Total Investment1: US$ 100 million
Opening date: 2013
Steady EBITDA : US$ 10 million
Bucaramanga’s population: 1,065,622
30
(1) Parque
Arauco´s share in Bucaramanga will be 55%
The pictures are only for reference, final design could be different
Investor Presentation
August 2012
years
Parque Arauco S.A.
www.parauco.com