I N V E S TO R D AY
L I M A
AGENDA
WELCOME ADDRESS
THIRD QUARTER RESULTS
PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY
PARQUE ARAUCO PERÚ CASE STUDIES
- LAMBRAMANI
- LARCOMAR
AGENDA
WELCOME ADDRESS
THIRD QUARTER RESULTS
PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY
PARQUE ARAUCO PERÚ CASE STUDIES
- LAMBRAMANI
- LARCOMAR
WELCOME ADDRESS
CLAUDIO CHAMORRO
CFO HOLDING PARQUE ARAUCO
INVESTOR DAY LIMA 2014
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.
THIS DOCUMENT HAS BEEN PREPARED BY PARQUE ARAUCO FOR THE PURPOSE
OF PROVIDING GENERAL INFORMATION ABOUT THE COMPANY.
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
OUR OPERATIONS
INTRODUCTION TO PARQUE ARAUCO
PARQUE ARAUCO AT A GLANCE
Parque Arauco is the third largest shopping center company in Chile, with operations in Perú and Colombia.
(1) Marina Arauco not included
(2) Exchange Rate: US$ 1 =CLP 560; LTM = Oct. 13 -Sept. 14 (1) Marina Arauco not included
(2) Exchange Rate: US$ 1 =CLP 560; LTM= Oct. 13 - Sept. 14
SHAREHOLDER STRUCTURE (SEPT 2014)
PARQUE ARAUCO OPERATIONAL METRICS BY COUNTRY
Total 718,000 m2 Market Cap 1,712 US$MM Total 216 US$ MM
TOTAL GLA 1 REVENUES LTM2
Colombia 10.0% Colombia 8.3% Perú 35.1% Perú 25.4% Chile 54.9% Investment Funds 27.4% Mutual Funds 1.7% Insurance Companies0.3% Others 6.2% Controlling Group 26.0% Abumohor Family 2.7%
Said Yarur Family 6.1% Brokers 21.3% Pension Funds 8.3% Chile 66.3%
Indicator / Country CHILE PERÚ COLOMBIA
Total GLA (m2)1 394,500 252,000 71,500
Owned GLA 359,985 149,495 31,460
Occupancy 95.7% 95.8% 89.6 %
Revenues LTM2 (US$MM) 143 55 18
# of Operations 18 11 2
(1) Marina Arauco not included
(2) Exchange Rate: US$ 1 =CLP 560; LTM= Oct 13 - Sept. 14 Others includes strip centers and outlet malls.
OPERATIONAL METRICS BY FORMAT
Total 718,000 m2
Total 216 US$ MM
TOTAL GLA 1 REVENUES LTM2
Others 7.7% Others 5.5% Neighborhood 6.8% Regional 85.5% Regional 90.9% Neighborhood 3.6%
INTRODUCTION TO PARQUE ARAUCO
SUCCESSFUL GROWTH STORY
REVENUES (US$MM)GLA M2 EBITDA US$MM NET INCOME US$MM
2006 First steps of expansion into Perú (45% stake in Megaplaza Norte in Lima)
2006 Chilean expansion begins with Mall Center in Curicó
2009 First Neighborhood shopping center in Perú (Mega Express Villa, in Chorrillos, Lima) 2010 Acquisition of Larcomar mall in
Miraflores, Lima
2010 Inauguration of first mall in Colombia
(Parque Arboleda in Pereira)
2011 First capital increase: US$168 mm
2012 Parque Arauco’s 30th anniversary, marked by further expansion in Chile, Perú & Colombia 2014 Capital increase for US$182 mm
2004 50 2005 54 2006 60 2007 82 2008 122 2009 121 2010 131 2011 154 2012 179 2013 192 3.9x CAGR 16.1% 2004 2004 2004 130,785 32 14 2013 2013 2013 693,100 133 89 5.3x 4.2x 6.5x
INTRODUCTION TO PARQUE ARAUCO
REVENUE TYPE AND CONTRACT DURATION
FIXED VS VARIABLE RENTAL REVENUES (OCT 13 - SEPT 14) OUR RENTAL REVENUES ARE DERIVED PRIMARILY FROM FIXED CONTRACTS
CONTRACT LENGTH (BASED ON % OF GLA)1
AND 64% OF OUR CONTRACTS HAVE A DURATION OF MORE THAN 4 YEARS
16%
Variable Revenues
84%
Fixed Revenues
< 2 years 2-3 years 3 - 4 years > 4 years Total 21
9
6
64
100
OUR REVENUES ARE PROTECTED
AGAINST INFLATION
INTRODUCTION TO PARQUE ARAUCO
OPERATIONS SUMMARY
THE COMPANY HAS 718,000 M
2OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5
NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIPCENTER IN CHILE, PERÚ AND
COLOMBIA
GLA (m2) 252,000
% Ownership 59.3% Owned GLA 149,495 Partners:
Grupo Wiese in all Megaplaza formats (50%) Los Portales S.A. in all S.C.P. projects (49%) Inversiones Centenario, S.A.A. in Parque el Golf project (50%) PERÚ 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%)
GLA (m2) 394,500
% Ownership 91.3 % Owned GLA 359,985 Partners:
Empresas de Ferrocarriles del Estado in Paseo Arauco Estación (17%)
Aurus Renta Inmobiliaria Fondo de Inversión in all Arauco Express projects (49%)
NYK, S.A. in Arauco San Antonio (20%)
Inversiones Doña Olga S.A. in Arauco San Antonio (29%) Gestora de Patrimonios S.A. in Arauco
Express Ciudad Empresarial (20%)
INTRODUCTION TO PARQUE ARAUCO
LEADING POSITION IN THE ANDEAN REGION COMMERCIAL REAL ESTATE INDUSTRY
Shopping Centers / Country CHILE PERÚ COLOMBIA Total GLA
GLA 394,500 m2 252,000 m2 73,500 m2 718,000 m2
Market Share 12 % 12 % 2 % 8 %
Ranking #4 #3 (n.a.) (n.a.)
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
Market Share Source: ISCS.as of November 2013; Revenue Source: 2013 Company Financial Statements Parque Arauco
2%
11,687
PARQUE ARAUCO IS THE ONLY COMPANY IN THE ANDEAN REGION FOCUSED ON RETAIL REAL ESTATE
Chilean Company 1 Chilean Company 2 Peruvian Company 1 Peruvian Company 2
85% 15% Revenues from Real Estate
Revenues from Home Improvement Revenues from Department Stores
Revenues from Supermarkets Revenues from Financial Operations Revenues from Other
4.9% 44% 30% 14% 7% 12% 9% 74% 4% 64% 34% 3% 66% 34%
INTRODUCTION TO PARQUE ARAUCO
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
CHILE
»
SHOPPING CENTERS
OUR OPERATIONSPARQUE ARAUCO KENNEDY - SANTIAGO
ARAUCO SAN ANTONIO - SAN ANTONIO ARAUCO QUILICURA - SANTIAGO
ARAUCO CHILLÁN - CHILLÁN
ARAUCO MAIPÚ - SANTIAGO
BUENAVENTURA OUTLET MALL - SANTIAGO
STRIPCENTERS CHILE
PASEO ARAUCO ESTACIÓN - SANTIAGO
Parque Arauco Kennedy Arauco Maipú
Paseo Arauco Estación Arauco Quilicura
Buenaventura Outlet Mall Arauco Express (Stripcenters Chile)
Arauco San Antonio
Arauco Chillán
Mall Outlet Concepción
SAN ANTONIO CHILLÁN Maipú Kennedy Buenaventura Outlet Estación Central Quilicura SANTIAGO
GLA (m2) %Ownership Owned GLA (m2) Occupancy
SANTIAGO 97.7% 96.8% 97.8% 98.8% 92.4 % 83.9 % 93.2 % 93.4 % 75.3% 95.7% SAN ANTONIO CHILLÁN OUR OPERATIONS
CHILE
»
SHOPPING CENTERS
CONCEPCIÓN CONCEPCIÓN TOTAL CHILE 115,000 75,000 69,000 32,000 19,000 18,000 100% 100% 83% 100% 100% 51% 115,000 75,000 57,270 32,000 19,000 9,180 28,500 31,500 6,500 394,500 51% 100% 100% 91.3% 14,535 31,500 6,500 359,985
PARQUE ARAUCO
ENTERED PERÚ
IN 2006 AND IS
NOW ONE OF THE
TOP SHOPPING
CENTER
OPERATORS IN
THE COUNTRY
WITH 252,000 M
2OF TOTAL GLA
PERÚ
PERÚ
»
SHOPPING CENTERS
OUR OPERATIONSMEGAPLAZA EXPRESS VILLA EL SALVADOR - LIMA
MEGAPLAZA CHIMBOTE MEGAPLAZA EXPRESS VILLA - LIMA
MEGAPLAZA CAÑETE
LARCOMAR FASHION CENTER - LIMA
MEGAPLAZA EXPRESS BARRANCA MEGAPLAZA NORTE - LIMA
INOUTLET FAUCETT - LIMA
OUR OPERATIONS CHIMBOTE BARRANCA CAÑETE CHINCHA AREQUIPA LIMA MegaPlaza Norte
MegaPlaza Villa El Salvador
MegaPlaza Express Villa Chorrillos and Viamix Chorrillos Larcomar
InOutlet Faucett
GLA (m2) %Ownership Owned GLA (m2) Occupancy
MegaPlaza Norte 107,500 50 % 53,750
MegaPlaza Express Villa 7,000 50 % 3,500
Larcomar Fashion Center 26,000 100 % 26,000
MegaPlaza Express Villa 9,000 50 % 4,500
El Salvador
InOutlet Faucett 7,500 51 % 3,825
Viamix Chorrillos 4,000 51% 2,040
MegaPlaza Chimbote 28,000 33.5 % 9,380
MegaPlaza Express Chincha 7,000 50 % 3,500
Parque Lambramani 30,000 100 % 30,000
MegaPlaza Cañete 16,500 50 % 8,250
MegaPlaza Express Barranca 9,500 50 % 4,750
TOTAL PERÚ 252,000 59.3% 149,495 94.7% 99.3% 95.3% 99.4 % 82.9 % N/A 99.9 % 100.0 % 94.7 % 99.9% 100.0% 95.8% LIMA CHIMBOTE CHINCHA AREQUIPA CAÑETE BARRANCA
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
»
SHOPPING CENTERS
PARQUE CARACOLÍ PARQUE ARBOLEDA
COLOMBIA
»
SHOPPING CENTERS
OUR OPERATIONSPEREIRA
GLA (m2) %Ownership Owned GLA (m2) Occupancy
Parque Arboleda 33,000 30.3 % 10,285 Parque Caracolí 38,500 55 % 21,175 TOTAL COLOMBIA 71,500 43.6% 31,460 92.9 % 86.8 % 89.6% BUCARAMANGA PEREIRA BUCARAMANGA
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS
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.
FUTURE DEVELOPMENTS
NAME OF THE PROJECT Location
Chile Chile Perú Perú Perú Colombia Total GLA (m2) Owned GLA (m2) Format Outlet Mall Strip Center Strip Center Neighborhood Various Regional Estimated Opening Date 4Q 2014 Under development Under development 4Q 2014 Under development 1H 2017 Total Investment (MMUS$) % Ownership 100.0% 51.0% 51.0% 50.0% 50.0% 55.0% GREENFIELD PROJECTS
NAME OF THE PROJECT
Boulevard V Kennedy Expansion Buenaventura Expansion Total Location Chile Chile Total GLA (m2) 1,000 6,900 7,900 Owned GLA (m2) 1,000 6,900 7,900 Format Regional Outlet Mall Estimated Opening Date 1Q 2015 4Q 2014 Total Investment (MMUS$) 9 24 33 % Ownership 100.0% 100.0% EXPANSION PROJECTS 7,200 14,700 25,100 14,000 TBD 63,400 124,400 12 35 72 14 124 289 546 7,200 7,497 12,801 7,000 TBD 34,870 69,368
Mall Outlet Curauma
Stripcenters Chile (Arauco Express) Stripcenters Perú MegaPlaza Pisco Others MegaPlaza La Colina Total Total 132,300 77,268 579
FUTURE DEVELOPMENTS
LANDBANK
Barranquilla Neiva Valledupar TOTAL COLOMBIA 54 11 21 86 56,000 47,000 54,000 157,000 100% 100% 55% 85% TOTAL 695,187 83% 226.5 Parque El Golf Lurin La Molina Colonial Landbank IPSA TOTAL PERÚ 15,000 67,000 10,085 2,960 169,745 264,790 70% 100% 51% 51% 50% 64% 28.5 14 16 2 19 79.5 Total Cost (MMUS$) M2 % Ownership Name Quilicura 2 Buenaventura Coquimbo Chicureo Los Andes Others in Chile TOTAL CHILE 3 16 4 10 5 23 61 25,486 70,297 40,000 47,614 40,000 50,000 273,397 100% 100% 100% 100% 100% 100% 100%AGENDA
WELCOME ADDRESS
THIRD QUARTER RESULTS
PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY
PARQUE ARAUCO PERÚ CASE STUDIES
- LAMBRAMANI
- LARCOMAR
THIRD QUARTER RESULTS
EDUARDO PÉREZ MARCHANT
GERENTE DE FINANZAS HOLDING PARQUE ARAUCO
INVESTOR DAY LIMA 2014
INCOME STATEMENT - CONSOLIDATED 3Q13 Chg. % 2014 2013 Chg. % 3Q14 CH$ THOUSANDS Revenues Cost of Sales Gross Profit Administration Expenses OPERATING INCOME
Depreciation & Amortization
EBITDA
Other Income / Expenses Financial Income Financial Expenses
Share of Profit (Loss) of Associates Accounted
Foreign Exchange Differences
Income (Loss) for indexed assets and liabilities NON-OPERATING INCOME (EXPENSES) Profit before Income Tax
Income Tax
NET PROFIT (LOSS)
Attributable to:
Equity holders of the company Minority interests
NET PROFIT (LOSS)
30,784,238 (7,304,268) 23,479,970 (3,353,095) 20,126,875 (1,069,819) 21,196,694 (288,046) 1,549,326 (6,804,619) 1,275,828 1,830,529 (1,687,822) (4,124,804) 16,002,071 (1,901,116) 14,100,955 12,428,020 1,672,935 14,100,955 88,685,580 (20,667,518) 68,018,062 (10,411,194) 57,606,868 (2,587,508) 60,194,376 (1,285,183) 3,682,371 (18,626,733) 3,732,461 2,394,387 (9,153,414) (19,256,111) 38,350,757 (6,593,456) 31,757,301 27,046,397 4,710,904 31,757,301 26,136,196 (5,427,593) 20,708,603 (2,972,418) 17,736,185 (685,865) 18,422,050 (1,828,635) 695,857 (5,414,886) 1,169,250 (640,369) (2,684,077) (8,702,860) 9,033,325 (910,171) 8,123,154 7,034,562 1,088,592 8,123,154 75,295,864 (15,844,459) 59,451,405 (9,077,709) 50,373,696 (2,062,384) 52,436,080 (4,769,623) 2,748,521 (13,793,406) 3,829,881 404,917 (2,816,785) (14,396,495) 35,977,201 (6,227,890) 29,749,311 26,872,050 2,877,261 29,749,311 17.8% 34.6% 13.4% 12.8% 13.5% 56.0% 15.1% -84.2% 122.7% 25.7% 9.1% -385.9% -37.1% -52.6% 77.1% 108.9% 73.6% 76.7% 53.7% 73.6% 17.8% 30.4% 14.4% 14.7% 14.4% 25.5% 14.8% -73.1% 34.0% 35.0% -2.5% 491.3% 225.0% 33.8% 6.6% 5.9% 6.7% 0.6% 63.7% 6.7%
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.
3Q13 Chg. % 2014 2013 Chg. %
3Q14
EBITDA Margin % Net Income Margin %
FFO (Ch$ Millions)1
FFO Margin %
Total Tenant Sales (Ch$ Millions)2
Total GLA (m2)3
Owned GLA(m2)3
Weighted Avg. Shares (Millions)4
EPS (Ch$ Thousands)5
Stock Price (Ch$)
Daily Traded Volume (Ch$ Millions)
68.9% 40.4% 15,941 51.8% 320,611 718,000 540,940 814.50 15.26 1,142.60 415.39 67.9% 30.5% 45,250 51.0% 936,239 718,000 540,940 789.22 34.27 1,142.60 999.30 70.5% 26.9% 13,703 52.4% 279,129 642,100 483,431 699.50 10.06 970.00 1,085.00 69.6% 35.7% 41,391 55.0% 794,850 642,100 483,431 699.50 38.42 970.00 1,331.00 -163 1346 16.3% -64 14.9% 11.8% 11.9% 16.4% 51.7% 17.8% -61.7% -177 -519 9.3% -395 17.8% 11.8% 11.9% 12.8% -10.8% 17.8% -24.9%
KEY PERFORMANCE INDICATORS
“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.
OPERATING INCOME
REVENUES (Ch$ Millions) 3Q13 26,136 3Q14 30,784 2013 75,296 2014 88,686 17.8% 17.8%Consolidated occupancy remained stable at 95.1% in 3Q14. Total tenant sales for the quarter increased by 14.9% to Ch$ 320,611 million.
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. Revenues for the third quarter of 2014 increased 17.8%
year-over-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.
14.9%
17.8%
TENANT SALES (Ch$ Millions)
3Q13 279,129 3Q14 320,611 2013 794,850 936,239 2014
3Q14 REVENUES BY COUNTRY 8.4% Colombia 27.6% Perú 64.0% Chile 3Q13 REVENUES BY COUNTRY 8.2% Colombia 22.3% Perú 69.5% Chile
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.
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.
FINANCIAL AND OPERATING RESULTS
1H14 REVENUES BY COUNTRY 8.2% Colombia 26.7% Perú 65.1% Chile 1H13 REVENUES BY COUNTRY 6.6% Colombia 22.6% Perú 70.7% Chile
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.
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.
EBITDA BY COUNTRY 3Q14 EBITDA BY COUNTRY 3Q13
EBITDA
EBITDA (Ch$ Millions) 5.6% Colombia 27.1% Perú 67.3% Chile 6.0% Colombia 19.0% Perú 75.0% ChileFINANCIAL AND OPERATING RESULTS
3Q13 18,422 3Q14 21,197 2013 52,436 60,194 2014 15.1% 14.8%
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 non-cash deferred tax expense, third quarter 2014 real income tax totaled Ch$ 2,730 million compared to Ch$ 1,213 million in 2013. FINANCIAL AND OPERATING RESULTS
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.
3Q13 Chg. % 2014 2013 Chg. %
3Q14 CH$ THOUSANDS
Real Income Tax Deferred Tax Total Tax (2,729,878) 828,762 (1,901,116) (7,289,635) 696,179 (6,593,456) (1,212,648) 302,477 (910,171) (5,427,051) (800,839) (6,227,890) 125.1% 174.0% 108.9% 34.3% -186.9% 5.9%
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.
BALANCE SHEET REVIEW
BALANCE SHEET REVIEW
ASSETS
31.12.2013 Dif.
Current Assets Non Current Assets Total Assets 158,556 1,219,890 1,378,445 117,108 1,084,848 1,201,956 35.4% 12.4% 14.7% 30.09.2014 Var. (%) Ch$ millions 41,448 135,042 176,489
BALANCE SHEET REVIEW
LIABILITIES AND EQUITY
31.12.2013 Dif.
Current Liabilities Non Current Liabilities Total Liabilities
Equity
Total Liabilities and Equity
78,383 523,689 602,072 776,374 1,378,445 2,319 33,104 35,423 141,067 176,489 76,064 490,585 566,649 635,307 1,201,956 3.0% 6.7% 6.3% 22.2% 14.7% 30.09.2014 Var. (%) Ch$ millions
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.
BALANCE SHEET REVIEW
FINANCIAL INDICATORS
30.09.2014 Covenant
Limit
Gross Financial Debt Net Financial Debt
Net Financial Debt / EBITDA (12 months) EBITDA / Financial Expenses (12 months) Liabilities / Equity Current Liabilities Non-Current Liabilities Ch$ million Ch$ million times times times % % > 2.5 < 1.4 458,464 350,209 4.3 3.4 0.8 13 87 441,378 372,432 5.0 3.9 0.9 13 87 Units 31.12.2013
Net financial debt at the end the third quarter of 2014 was $350,209 million. The Company remains comfortably within its financial covenants, with Liabilities/Equity of 0.8 times as compared to a limit of 1.4 times and EBITDA/Financial Expenses of 3.4 times, above the limit of 2.5 times. CONCEPT 30.09.2014 31.12.2013 Financial Leasing Bank Loans Bonds Hedge Liabilities TOTAL 1,329 46,011 5,364 - 52,704 10,585 270,492 116,163 8,412 405,652 9,017 264,401 118,446 13,895 405,760 1,275 29,373 5,078 - 35,726 30.09.2014 31.12.2013
CASH FLOW REVIEW
Cash flow from operating activities decreased by 6% to Ch$ 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.
CASH FLOW (CH$ MILLIONS)
30.09.2013 Dif.
From Operating Activities From Investment Activities From Financing Activities
Eff. of var. exchange rate on cash and cash equi.
Net cash flow during the period
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
36,979 (80,424) 79,585 3,169 39,309 68,946 108,255 (2,244) 31,473 35,937 5,392 70,558 (34,836) 35,722 39,223 (111,897) 43,648 (2,223) (31,249) 103,782 72,533 -6% -28% 82% -243% -226% -34% 49% 30.09.2014 Var. %
MAIN FINANCIAL INDICATORS
MAIN FINANCIAL INDICATORS
130.09.2014 FINANCIAL RATIOS
INDICATOR
Liquidity Level Leverage Ratio Short Term Debt Long Term Debt Interest Coverage Ratio Net Profit
Basic EPS Return on Equity Return on Assets
Return on Operating Assets Dividend Yield
Gross Profit Margin
Current Assets / Current Liabilities Total Liabilities / Equity Current Liabilities / Total Liabilities Non Current Liabilities / Total Liabilities EBITDA / Financial Costs* Net Profit Net Profit att. Equity Holders / N° shares - trea. shares Net profit att. Equity Holders / Av. Shareholders Equity* Net profit att. Equity Holders / Average Total Assets* Net Profit /Average Operating Assets* Dividends Paid Last 12 m. / Last Share Price Operating profit / Revenues
times times % % times Ch$ mill. Ch$ % % % % % 2.02 0.78 13.02 86.98 3.43 57,607 34.27 9.24 4.01 5.23 2.36 64.96 Unit 30.09.2013 1.99 0.84 11.93 88.07 3.94 50,374 38.42 8.00 4.37 5.46 2.80 66.90
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.
*PARQUE ARBOLEDA DOES NOT INCLUDE OFFICE TOWERS **GLA OF MARINA ARAUCO NOT INCLUDED
PORTFOLIO 2014
TOTAL ** 718,000 75% 540,940 12% 107,500 7,000 26,000 30,000 28,000 9,000 7,000 16,500 9,500 7,500 4,000 252,000 53,700 3,500 26,000 30,000 9,380 4,500 3,612 8,199 4,754 3,825 2,040 149,495 29% 0% 0% 7% 0% 0% -1% Nuevo Nuevo 50% Nuevo 30% Total GLA (m2) % Ownership Owned GLA (m2) GLA vs 2013 Var.% TotalParque Arboleda* Parque Caracolí TOTAL COLOMBIA 33,000 38,500 71,500 30% 55% 44% 10,285 21,175 31,460 -3% 1% -1%
Parque Arauco Kennedy Arauco Maipu
Arauco Chillán (Plaza El Roble)
Paseo Arauco Estación Arauco San Antonio Arauco Quilicura
Arauco Express (Strip Centers)
Buenaventura Premium Outlet Outlet Mall Concepción
TOTAL CHILE 115,000 75,000 31,500 69,000 28,500 32,000 18,000 19,000 6,500 394,500 100% 100% 100% 83% 51% 100% 51% 100% 100% 91% 115,000 75,000 31,500 57,270 14,535 32,000 9,180 19,000 6,500 359,985 0% 1% 26% 1% -2% 0% 32% -5% Nuevo 5% Name Megaplaza Norte
Mega Express Villa Chorrillos Larcomar
Parque Lambramani Megaplaza Chimbote
Mega Express Villa El Salvador Mega Express Chincha Mega Express Cañete Mega Express Barranca
InOutlet Faucett (Lima Outlet Center) Viamíx Chorrillos TOTAL PERU 50% 50% 100% 100% 34% 50% 50% 50% 50% 51% 51% 59%
GLA Revenue Chile in MMCLP/ Perú in MPEN
Colombia in MMCOP
Parque Arauco Kennedy Arauco Maipú
Arauco Chillán (Plaza El Roble) Paseo Arauco Estación Arauco San Antonio Arauco Quilicura
Arauco Express (Stripcenters Chile) Buenaventura Premium Outlet Mall Outlet Concepción
TOTAL CHILE
Megaplaza Norte
Mega Express Villa Chorrillos Larcomar
Parque Lambramani Mega Plaza Chimbote Mega Express Villa El Salvador Mega Express Chincha Mega Plaza Cañete Mega Plaza Barranca
InOutlet Faucett (Lima Outlet Center) Víamix Chorrillos TOTAL PERÚ Parque Arboleda Parque Caracolí TOTAL COLOMBIA 115,000 75,000 31,500 69,000 28,500 32,000 18,000 19,000 6,500 394,500 107,500 7,000 26,000 30,000 28,000 9,000 7,000 16,500 9,500 7,500 4,000 252,000 33,000 38,500 71,500 73,500 115,200 74,000 25,000 68,000 29,000 32,000 13,600 20,000 376,800 83,000 7,000 26,000 28,000 28,000 9,000 7,300 - - 5,000 - 193,300 34,000 38,000 72,000 0% 1% 26% 1% -2% 0% 32% -5% -5% 30% 0% 0% 7% 0% 0% -4% - - 50% - 30% -3% 1% -1% 0% 27,099 8,346 3,190 10,017 2,611 2,323 1,712 2,324 227 57,848 56,394 3,184 24,405 8,284 7,650 3,844 3,144 4,046 3,082 2,865 -116,898 13,279 11,924 25,203 25,331 7,733 3,095 9,758 2,556 1,252 1,640 1,906 -53,271 45,612 2,950 19,654 7,543 7,183 3,192 1,815 - - 1,910 -89,859 12,709 6,253 18,963 7% 8% 3% 3% 2% 86% 4% 22% - 9% 24% 8% 24% 10% 6% 20% 73% - - 50% -30% 4% 91% 33% Sales 258,094 113,671 45,786 75,210 23,840 31,160 9,951 22,930 1,925 582,569 799,892 47,541 170,576 106,868 154,773 45,479 21,769 79,517 25,969 32,427 1,406 1,486,216 954,695 109,779 87,257 197,036 242,276 103,156 45,040 69,863 22,869 19,578 9,683 20,053 -532,518 731,182 41,607 133,640 94,057 146,058 36,505 12,935 - - 25,047 - 1,221,032 99,986 42,225 142,211 7% 10% 2% 8% 4% 59% 3% 14% -9% 9% 14% 28% 14% 6% 25% 68% - - 29% -22% 10% 107% 39% EBITDA 24,941 7,970 2,431 8,741 1,728 1,865 1,015 1,794 52 50,537 44,767 2,380 16,572 3,386 5,123 2,879 2,251 2,733 2,046 2,464 84,601 10,279 8,286 18,564 23,393 7,215 2,407 8,455 1,758 871 1,082 1,401 0 46,582 35,603 2,070 12,223 2,322 4,454 2,251 998 - - 1,520 -61,440 10,633 3,694 14,327 7% 10% 1% 3% -2% 114% -6% 28% - 8% 26% 15% 36% 46% 15% 28% 126% - - 62% -38% -3% 124% 30% 9M13
9M14 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. %
PROPERTY LEVEL RESULTS
Chile in MMCLP/ Perú in MPEN Colombia in MMCOP
Parque Arauco Kennedy Arauco Maipú
Arauco Chillán (Plaza El Roble) Paseo Arauco Estación Arauco San Antonio Arauco Quilicura
Arauco Express (Stripcenters Chile) Buenaventura Premium Outlet Mall Outlet Concepción
TOTAL CHILE
Megaplaza Norte
Mega Express Villa Chorrillos Larcomar
Parque Lambramani Mega Plaza Chimbote Mega Express Villa El Salvador Mega Express Chincha Mega Plaza Cañete Mega Plaza Barranca
InOutlet Faucett (Lima Outlet Center) Víamix Chorrillos TOTAL PERÚ Parque Arboleda Parque Caracolí TOTAL COLOMBIA 97.7% 96.8% 93.4% 97.8% 93.2% 98.8% 83.9% 92.4% 75.3% 95.7% 94.7% 99.3% 93.5% 94.7% 99.9% 99.4% 100.0% 99.9% 100.0% 81.0% -95.8% 92.9% 86.8% 89.6% 98.4% 97.2% 91.3% 98.7% 94.7% 97.7% 100.0% 90.8% -97.1% 92.0% 99.9% 89.8% 77.6% 100.0% 96.0% 95.0% - - 88.0% -91.3% 97.1% 77.0% 86.5% -75 -40 214 -90 -152 112 -1610 164 --135 272 -64 372 1710 -8 337 500 - - -698 -450 -425 976 308 256,029 175,156 171,683 124,257 98,031 111,967 84,184 137,311 38,508 172,919 870 759 768 428 615 573 338 542 317 655 -695 387,879 281,142 332,052 248,856 158,856 207,803 115,612 91,509 99,159 88,760 122,021 168,266 1,037 674 626 434 621 490 257 - - 913 771 343,950 226,852 298,240 3% 10% -17% 7% 7% 13% -5% 13% -3% -16% 13% 23% -1% -1% 17% 32% - - -28% --10% 13% 24% 11% EBITDA Margin 92.0% 95.5% 76.2% 87.3% 66.2% 80.3% 59.3% 77.2% 22.8% 84.4% 79.4% 74.8% 67.9% 40.9% 67.0% 74.9% 71.6% 67.5% 66.4% 86.0% -70.5% 77.4% 69.5% 73.1% 92.4% 93.3% 77.8% 86.7% 68.8% 69.6% 66.0% 73.5% -84.9% 78.1% 70.2% 62.2% 30.8% 62.0% 70.5% 55.0% - - 79.6% -65.3% 83.7% 59.1% 70.7% -36 219 -156 56 -260 1075 -670 370 --44 133 459 571 1009 497 437 1663 - - 646 -524 -626 1042 246 26,882 12,861 11,961 16,549 10,739 8,345 14,480 13,914 4,537 17,171 61 51 110 33 30 48 49 28 38 58 55 46,919 38,418 42,473 26,019 11,908 14,280 16,148 10,228 6,341 15,033 11,598 -16,833 65 48 92 35 31 43 36 - - 70 57 43,719 33,597 39,767 3% 8% -16% 2% 5% 32% -4% 20% -2% -5% 6% 19% -5% 0% 13% 35% - - -17% --4% 7% 14% 7% 9M13
9M14 Var. b.p. 9M14 9M13 Var. b.p. 9M14 9M13 Var. % 9M14 9M13 Var. %
PROPERTY LEVEL RESULTS
NINE MONTHS 2014
Monthly sales per m2 * Monthly revenue per m2* Occupancy
GLA Revenue Chile in MMCLP/ Perú in MPEN
Colombia in MMCOP
Parque Arauco Kennedy Arauco Maipú
Arauco Chillán (Plaza El Roble) Paseo Arauco Estación Arauco San Antonio Arauco Quilicura
Arauco Express (Stripcenters Chile) Buenaventura Premium Outlet Mall Outlet Concepción
TOTAL CHILE
Megaplaza Norte
Mega Express Villa Chorrillos Larcomar
Parque Lambramani Mega Plaza Chimbote Mega Express Villa El Salvador Mega Express Chincha Mega Plaza Cañete Mega Plaza Barranca
InOutlet Faucett (Lima Outlet Center) Víamix Chorrillos TOTAL PERÚ Parque Arboleda Parque Caracolí TOTAL COLOMBIA 115,000 75,000 31,500 69,000 28,500 32,000 18,000 19,000 6,500 394,500 107,500 7,000 26,000 30,000 28,000 9,000 7,000 16,500 9,500 7,500 4,000 252,000 33,000 38,500 71,500 73,500 115,200 74,000 25,000 68,000 29,000 32,000 13,600 20,000 376,800 83,000 7,000 26,000 28,000 28,000 9,000 7,300 - - 5,000 - 193,300 34,000 38,000 72,000 0% 1% 26% 1% -2% 0% 32% -5% -5% 30% 0% 0% 7% 0% 0% -4% - - 50% - 30% -3% 1% -1% 0% 9,201 2,810 1,076 3,427 840 806 612 770 227 19,769 19,477 1,063 8,624 2,872 2,647 1,330 1,056 1,612 1,158 1,145 -40,982 4,490 4,067 8,558 8,605 2,624 1,009 3,285 816 628 560 624 - 18,151 15,584 1,038 6,676 2,584 2,535 1,107 879 - - 974 -31,377 4,308 3,713 8,022 7% 7% 7% 4% 3% 28% 9% 23% - 9% 25% 2% 29% 11% 4% 20% 20% - - 18% -31% 4% 10% 7% Sales 83,443 37,220 14,931 25,410 7,296 10,621 3,877 7,648 1,438 191,884 285,912 16,782 59,528 37,775 54,840 16,355 7,905 27,568 9,622 13,830 1,406 531,522 37,327 30,955 68,282 82,360 36,680 15,007 23,986 7,211 9,194 3,511 6,947 - 184,896 245,438 14,430 47,155 31,484 52,556 12,975 7,624 - - 11,829 423,493 34,416 23,971 58,387 1% 1% -1% 6% 1% 16% 10% 10% - 4% 16% 16% 26% 20% 4% 26% 4% - - 17% -26% 8% 29% 17% EBITDA 8,484 2,736 772 3,114 587 654 357 616 52 17,373 16,217 838 6,160 1,122 1,827 983 775 1,214 800 1,013 -30,949 3,213 2,643 5,856 7,979 2,432 701 2,936 561 444 374 438 - 15,865 10,996 708 4,128 881 1,652 770 555 - - 767 -20,456 3,627 2,656 6,283 6% 13% 10% 6% 5% 47% -5% 41% - 10% 47% 18% 49% 27% 11% 28% 40% - - 32% -51% -11% 0% -7% 3Q13
3Q14 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. %
PROPERTY LEVEL RESULTS
Chile in MMCLP/ Perú in MPEN Colombia in MMCOP
Parque Arauco Kennedy Arauco Maipú
Arauco Chillán (Plaza El Roble) Paseo Arauco Estación Arauco San Antonio Arauco Quilicura
Arauco Express (Stripcenters Chile) Buenaventura Premium Outlet Mall Outlet Concepción
TOTAL CHILE
Megaplaza Norte
Mega Express Villa Chorrillos Larcomar
Parque Lambramani Mega Plaza Chimbote Mega Express Villa El Salvador Mega Express Chincha Mega Plaza Cañete Mega Plaza Barranca
InOutlet Faucett (Lima Outlet Center) Víamix Chorrillos TOTAL PERÚ Parque Arboleda Parque Caracolí TOTAL COLOMBIA 97.7% 96.8% 93.4% 97.8% 93.2% 98.8% 83.9% 92.4% 75.3% 95.7% 94.7% 99.3% 93.5% 94.7% 99.9% 99.4% 100.0% 99.9% 100.0% 81.0% -95.8% 92.9% 86.8% 89.6% 98.4% 97.2% 91.3% 98.7% 94.7% 97.7% 100.0% 90.8% -97.1% 92.0% 99.9% 89.8% 77.6% 100.0% 96.0% 95.0% - - 88.0% -91.3% 97.1% 77.0% 86.5% -75 -40 214 -90 -152 112 -1610 164 -135 272 -64 372 1710 -8 337 500 - - -698 -450 -425 976 308 248,035 171,930 148,737 125,942 90,546 113,615 95,095 139,293 168,107 936 805 808 448 653 610 370 559 338 765 740 398,265 299,891 346,706 252,983 169,549 209,522 119,248 85,758 105,580 90,646 128,720 171,433 1,069 698 654 453 659 517 370 - - 863 797 354,424 257,566 307,023 -2% 1% -29% 6% 6% 8% 5% 8% -2% -12% 15% 24% -1% -1% 18% 0% --11% --7% 12% 16% 13% EBITDA Margin 92.2% 97.4% 71.8% 90.9% 69.9% 81.1% 58.3% 80.0% 22.8% 85.5% 83.3% 78.8% 71.4% 39.1% 69.0% 73.9% 73.4% 75.3% 69.1% 88.5% -73.4% 71.6% 65.0% 68.0% 92.7% 92.7% 69.5% 89.4% 68.9% 70.6% 66.8% 70.2% - 84.7% 74.9% 71.5% 61.8% 34.1% 66.2% 71.1% 65.9% - - 78.7% -65.4% 84.2% 71.5% 77.5% -51 469 228 151 102 1054 -848 977 - 81 836 729 961 495 283 280 749 - - 980 -798 -1264 -654 -949 27,349 12,982 10,724 16,984 10,428 8,624 15,004 14,022 17,319 64 51 117 34 32 50 49 33 41 63 57 47,909 39,403 43,451 26,432 12,129 14,087 16,332 9,704 7,212 14,458 11,562 16,829 68 50 93 37 32 44 43 - - 71 59 44,365 39,901 42,180 3% 7% -24% 4% 7% 20% 4% 21% 3% -6% 2% 26% -8% -1% 12% 16% --11% --3% 8% -1% 3% 3Q13
3Q14 Var. b.p. 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. % 3Q14 3Q13 Var. %
PROPERTY LEVEL RESULTS
THIRD QUARTER 2014
Monthly sales per m2 * Monthly revenues per m2* Occupancy
HIGHLIGHTS BY COUNTRY
PEREIRA BUCARAMANGA CHIMBOTE CHINCHA CAÑETE BARRANCA AREQUIPA SANTIAGO SAN ANTONIO CHILLÁN LIMA CONCEPCIÓNHIGHLIGHTS BY COUNTRY
CHILE
ARAUCO SAN ANTONIO, CHILE
During the third quarter of 2014, Parque Arauco opened its tenth strip center in Chile, Strip Center Las Brujas, in La Reina, Santiago. This property adds 3,600m2 to Parque Arauco´s portfolio as the company continues to build its GLA of strip 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.
STRIP CENTER COLON - SANTIAGO PARQUE ARAUCO KENNEDY - SANTIAGO
ARAUCO QUILICURA - SANTIAGO
The shopping mall initiated a new platform to communicate with its customers with the launch of Revista Detalle (www.revistadetalle.cl.) The website is a blog that provides a way to keep customers informed of news related to fashion, technology, art and gastronomy, among other topics. The expansion of the Luxury District continues, which will add new stores to the high end mix. The expansion is expected to be completed 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 EBITDA increased by 6%.
In Mall Arauco Maipu diversification of the commercial mix continued and new stores 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 quarter, tenant sales increased 1%, revenues increased 7% and EBITDA increased
13%.
In Arauco Paseo Estacion we continued remodeling and modernizing not only the
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
customers navigate the large mall surrounded by the main train and bus station in
Santiago. Tenant sales increased 6%, revenues increased 4% and EBITDA increased
6%.
During the third quarter of 2014 Mall Arauco Quilicura inaugurated Clinica Megasalud, adding health care and dental care as services offered at the shopping center for the
residents of Quilicura and its surroundings. New stores offering clothing and beauty supplies also opened, including Americanino, Tua and Planet Sport improving the overall commercial mix of the shopping center. The mall continues to perform above expectations and this quarter tenant sales increased 16%, revenues increased 28% and EBITDA increased 47%.
In Arauco San Antonio, during the quarter the recently inaugurated Sonesta Hotel 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 during the coming months such as Maui and Sons.
The expansion of Buenaventura Premium Outlet continues and is going as planned.
Some space has already been handed over to retailers for them to complete the
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
increased by 41%.
Mall Outlet Concepcion, which opened during the second quarter of this year, has been well received by the community and has quickly reached an occupancy rate of 75.3%. Parque Arauco´s participation in premium outlet malls will further
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, will add 7,200 m2 of premium outlet retail to the coastal region of Chile.
PERÚ
LARCOMAR, LIMA
MEGAPLAZA CAÑETE- CAÑETE MEGAPLAZA NORTE - LIMA
In Peru, Parque Arauco announced the inclusion of the first strip center into its portfolio, ViaMix Chorrillos. Chorrillos, which has 4,000 m2 of GLA, began
contributing to the company´s EBITDA during the third quarter.
In Larcomar, Parque Arauco continued working to position the mall as the premier shopping center in the city. The upscale restaurant La Trattoria de Mambrino, a well-known name in Lima, joined the already impressive list of upscale restaurants in the mall. In addition, a VIP parking area and Valet Parking service was incorporated. Finally the Larcomar webpage was re-launched with a new look and better information to improve the shopping experience even before the customer arrives. The efforts to renovate the mall can be seen clearly in the numbers - this quarter the tenant sales increased 26%, revenues increased 29% and EBITDA increased 49%.
In Parque Lambramani Parque Arauco continued improving the commercial mix of the mall adding new stores and services including an Easy Taxi stand to help customers find transportation options safely. The mall´s customer rewards system “Puntos Bonus” gained traction and a number of new stores in the mall joined the program to enable purchases in their store help clients
earn points that can be used in the mall and therefore encouraging customer loyalty. During the quarter tenant sales increased by 20%, revenues increased by 11% and EBITDA increased by 27% as compared to the same period in 2013.
During the third quarter of 2014, after the inauguration of its expansion, InOutlet Faucett saw its occupancy rate steadily increasing to 81%. During the tenant sales increased 17%, revenues increased 18% and EBITDA increased 32%.
Performance in all the MegaPlazas throughout Peru was very strong during the quarter and revenues and EBITDA increased in every shopping mall. In MegaPlaza Norte, new stores were opened including U.S. Polo and the restaurant Mr. Shao, among others. In MegaPlaza Cañete, Coney Park, a store that offers entertainment for children opened. The neighborhood shopping center format will be expanded during the fourth quarter with the inauguration of MegaPlaza Pisco in the city of Pisco. The US$14 million project will add 14,000 m2 to the company´s portfolio and will include Plaza
Vea, Estilos and Promart as the anchor stores.
COLOMBIA
PARQUE CARACOLÍ, BUCARAMANGA
PARQUE ARBOLEDA, PEREIRA PARQUE LA COLINA, BOGOTA
In Colombia, in Parque Arboleda, the interior of the office tower continues to be completed and will soon offer high quality, well equipped space to business looking for commercial space in Pereira. The shopping center remains the preferred mall in the coffee region of the country and during the quarter the tenant sales increased 8%, revenues increased 4% and EBITDA decreased 11%, as the mall began paying territorial taxes in 2014.
In Parque Caracoli, the Parque Arauco team continued improving the commercial mix of the mall. The North American brand American Eagle opened its second store in all of Colombia in the
mall located in Bucaramanga. The mall showed strong growth with tenant sales increasing 29%, revenues increasing 10% and EBITDA remaining flat during the quarter.
Construction at Parque La Colina in Bogota is on schedule and on budget. The shopping center will be Parque Arauco´s largest asset in Colombia and is expected to open during the first half of 2017. The mall will include Falabella as its anchor store, various international brands, and a variety of entertainment and service options in its 63,400 m2 of GLA.
BALANCE SHEET 31.12.2013 30.09.2014 CH$ THOUSANDS ASSETS Current Assets
Cash and Cash Equivalents
Other Current Non-Financial Assets Trade Accounts Rec. and Other Rec.
Accounts Receivable from Rel. Comp. Current Tax Receivable
Total Current Assets
108,255 4,180 17,566 6,152 22,404 158,556 68,946 3,149 18,886 4,836 21,291 117,108 CH$ THOUSANDS LIABILITIES Current Liabilities
Other Current Financial Liabilities Comm. Cred. and Other Acc. Payable Current Acc. Payable to Rel. Parties
Current Provisions
Tax Liabilities
Current Provisions for Employees
Other Current Liabilities Total Current Liabilities
35,726 25,101 1,902 2,330 5,083 1,999 3,923 76,064 Non-Current Liabilities
Other Non-Current Fin. Liabilities Deferred Tax Liabilities
Other Non-Current Liabilities Total Non-Current Liabilities TOTAL LIABILITIES
Non-Current Assets
Other Non-Current Non-Fin. Assets
Non-Current Accounts Receivable
Non-Current Acc. Rec. with Rel. Part.
Share of Profit (Loss) of Associates Accounted Intangible Assets exc. Surplus Value
Surplus Value
Property, Plant and Equipment Investment Properties Deferred Tax Assets
Total Non-Current Assets
25,791 278 0 50,586 15,160 17,427 2,922 1,068,376 39,350 1,219,890 26,458 808 542 49,634 14,988 15,629 2,724 947,839 26,225 1,084,848
TOTAL ASSETS 1,378,445 1,201,956 TOTAL LIABILITIES AND EQUITY 1,378,445 1,201,956
CONSOLIDATED FINANCIAL STATEMENTS
31.12.2013 30.09.2014 52,704 11,265 2,188 1,508 5,908 3,086 1,723 78,383 405,760 100,194 17,736 523,689 602,072 405,652 75,999 8,934 490,585 566,649 336,925 (3,737) 294,211 201 4,853 632,453 143,921 776,374 233,643 (3,737) 290,550 0 (10,113) 510,344 124,963 635,307 EQUITY
Issued Share Capital Treasury Shares
Accumulated Earnings (Losses)
Premium on New Issued Shares Other Reserves
Attrib. to Shareholders of the Company
Minority Interest
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
Other inputs (outputs) in cash
Net cash flow from financing activities
Net increase (decrease) in cash and cash equivalents, before the effect of changes in the exchange rate Effects of variation in the exchange rate on cash and cash equivalents
Increase (decrease) in net cash and cash equivalent
Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period
112,306,650 77,331,149 285,415 (80,198,278) 0 (2,328,648) (23,900,658) 3,089,444 (17,815,653) 10,815,939 79,585,360 36,140,147 3,168,904 39,309,051 68,945,796 108,254,847 30.09.2014 30.09.2013 Var. %
CASH FLOW STATEMENT
CH$ THOUSANDS
Net cash flow from OPERATING activities
Receipts from sales of goods and services Payments to suppliers for goods and services Payments on behalf of employees
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
Loans to related entities
Purchases of property, plant and equipment Purchases of intangible assets
Proceeds from related entities Dividends received
Purchases of other long-term assets Other inputs (outputs) in cash
Net Cash flow from investment activities
137,235,554 (68,390,124) (10,285,269) (1,213,151) (20,367,874) 36,979,136
CONSOLIDATED FINANCIAL STATEMENTS
(3.512.345) (1.315.958) (530.380) (138.202) 542.191 2.569.709 (84.531.035) 6.491.671 (80.424.349) 112,058,479 (42,350,581) (8,142,149) (2,930,464) (19,412,553) 39,222,732 (11.799.567) (364.421) (642.565) (3.990) 761.142 1.218.809 (99.814.401) (1.252.088) (111.897.081) 13,708,498 97,358,336 1,797,851 (31,549,023) (1,004,809) (1,355,084) (18,646,794) 2,347,972 (15,196,538) (3,812,512) 43,647,897 (29,026,452) (2,222,811) (31,249,263) 103,782,289 72,533,026 22% 61% 26% -59% 5% -6% -70% 261% -17% 3364% -15% -29% 111% -618% -28% 719% -21% -84% 154% N/A 72% 28% 32% 17% -384% 82% -225% -243% -226% -34% 49%
AGENDA
WELCOME ADDRESS
THIRD QUARTER RESULTS
PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY
PARQUE ARAUCO PERÚ CASE STUDIES
- LAMBRAMANI
- LARCOMAR
PARQUE ARAUCO PERU
OVERVIEW AND STRATEGY
EDUARDO HERRERA
CEO PARQUE ARAUCO PERU
INVESTOR DAY LIMA 2014
‣
INTRODUCTION TO PERÚ
‣
INTRODUCTION TO THE
COMMERCIAL REAL
ESTATE SECTOR
‣
INTRODUCTION TO
PERU HAS A GDP OF US$377 BILLION AND A PER CAPITA GDP OF US$12,000
‣ INTRODUCTION TO PERÚ
PERÚ HAS A LARGE GDP FOR REGIONAL STANDARDS
US$ Billion, 2014 (F)
AND A RELATIVELY SMALL PER CAPITA GDP
US$, 2014 (F)
Source: Internacional Monetary Fund (IMF) Source: IMF
182
377
410
546
927
642
Peru
Chile
Venezuela
Colombia
Argentina
Mexico
2.143
Ecuador
Brazil
3.073
13.459
15.153
23.165
Colombia
11.989
Ecuador
11.352
Peru
Brazil
17.925
Argentina
22.101
Chile
Venezuela
17.917
Mexico
PERU HAS GROWN IMPORTANTLY BUT SHOWS SIGNS OF DECELERATION
‣ INTRODUCTION TO PERÚ
PERÚ HAS GROWN IMPORTANTLY IN THE LAST 3 YEARS
REAL GDP % CHANGE, AVERAGE 2012-2014
BUT SHOWS SIGNS OF DECELERATION
REAL GDP % CHANGE
Source: IMF Source: IMF
0,7
1,3
1,3
3,9
4,5
4,5
5,1
2,5
Argentina
Brazil
Venezuela
Mexico
Chile
Colombia
Ecuador
Peru
3,6
5,8
6,0
6,5
8,5
2013
2014
2012
2011
2010
PERU IS EXPECTED TO CONTINUE TO LEADING THE REGIONAL IN TERMS OF GROWTH
‣ INTRODUCTION TO PERÚ
PERÚ WILL CONTINUE TO LEAD REGIONAL GROWTH
REAL GDP % CHANGE, AVERAGE 2014-2017
PERÚ GDP GROWTH EXPECTATIONS
REAL GDP % CHANGE
Source: IMF Source: IMF
-1,6
-0,9
1,7
3,4
3,4
4,5
4,6
4,9
Venezuela
Argentina
Brazil
Mexico
Chile
Ecuador
Colombia
Peru
5,5
5,5
3,6
5,1
2017
2016
2015
2014
‣
INTRODUCTION TO PERÚ
‣
INTRODUCTION TO THE
COMMERCIAL REAL
ESTATE SECTOR
‣
INTRODUCTION TO
ANNUAL VARIATION OF GLA (thousands)
GLA GROWTH SINCE 2005 HAS BEEN SIGNIFICANT BUT HAS RECENTLY SLOWED
‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR
NUMBERS OF SHOPPING CENTERS IN PERU EVOLUTION OF GLA IN PERU (thousands)
ANNUAL GROWTH RATE (%)
2.244 2.002 1.598 1.380 1.211 964 785 601 489 382 +22% 2014 2009 2006 2007 2008 2010 2011 2012 2013 2005 71 60 50 45 38 28 24 19 14 10 2014 2005 2006 2007 2012 2013 +24% 2009 2008 2010 2011 242 403 218 169 247 179 184 112 107 93 2011 2012 2010 2006 2007 2008 2009 2005 2013 2014
25
16
26
23
31
23
28
32
0
10
20
30
40
2005 2006 2007
2008
2009
2010
2011
2012
2013
2014
14
12
THERE IS OPPORTUNITY FOR GROWTH IN THE SECTOR
‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR
GLA (M2) PER 1000 INHABITANTS
2013
% OF RETAIL SALES IN SHOPPING CENTERS
2013
Source: International Council of Shopping Centers Source: International Council of Shopping Centers
64
65
74
134
197
940
1.369
2.200
Australia
Canada
USA
Chile
Mexico
Brazil
Peru
Colombia
20,0
Colombia
12,0
Brazil
24,0
55,0
Chile
51,0
24,0
Mexico
Peru
25,0
Australia
Canada
65,0
USA
PRIVATE CONSUMPTION AND RETAIL SALES ARE EXPECTED TO GROW
GDP (BILLION US$) AND GDP CHANGE (%) TOTAL, PRIVATE AND PUBLIC INVESTMENT GROWTH (%)
INTERNAL DEMAND (MMUS$) AND CONSUMPTION (MMUS$) RETAIL SALES (MMUS$) AND RETAIL SALES CHANGE (%)
Source: IMF
Source: Banco Central de Reserva del Perú.
Source: Banco Central de Reserva del Perú.
2008 2009 2010 2011 2012 2013 2014 E 2015 E 2016 E 30% -23% 39% 13% 12% 11% 0% 8% 11% 24% -9% 26% 11% 16% 6% 0% 5% 6% 25% -2% 23% 6% 16% 8% 0% 9% 12%
Source: Banco Central de Reserva del Perú.
TOTAL PRIVATE PUBLIC
‣ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR
US$MM 2008 2009 2010 2011 2012 2013 2014E Domestic Demand 126,434 125,226 145,220 160,977 178,865 197,038 203,540 13.6%% -3,3% 14.9% 7.7% 8.0% 7.0% 3.3% Private Consumption 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% Private Investment 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% 433 403 377 358 333 259 254 0 100 200 300 400 500 0 2 4 6 8 10 2014E 2009 2012 2008 2010 284 2013 2015E 2016E 309 2011 20,9 19,8 18,7 17,9 16,9 13,8 12,9 0 5 10 15 20 25 -5 0 5 10 15 15,7
2010 2011 2012 2013 2014E 2015E 2016E 2009
14,4
‣
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
THE COMPANY UNDERSTOOD THE HIGH POTENTIAL OF THE COUNTRY/SECTOR AND EXPANDED
RAPIDLY THROUGH GREENFIELDS AND ACQUISITIONS BY WAY OF PARTNERSHIPS
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ
0 5 10 15 0 100.000 200.000 300.000 1 1 2009 2008 2 1 4 2006 2007 2010 5 2013 6 2011 10 11 2012 2014 100% Parque Arauco Los Portales Group Centenario Group # of operations GLA (m2) Megaplaza Norte Lambramani Wiese
Group Megaexpress Villa
Megaplaza Norte InOutlet Faucett Lambramani Larcomar Megaplaza Chimbote Megaexpress Villa El Salvador Megaexpress Chincha Megaplaza Cañete Megaexpress Barranca Acquisitions Greenfields Agreement to develop Camino Real/Parque El Golf ViaMix Chorillos
WE HAVE SHOPPING CENTERS IN THE MOST IMPORTANT REGIONS IN PERU
‣ INTRODUCTION TO PARQUE ARAUCO PERÚ
Megaplaza Norte
Format Regional Shopping Center GLA (m²) 107,500
Partner Grupo Wiese (50%)
Larcomar Fashion Center
Format Regional Shopping Center GLA (m²) 26,000
Partner 100% Parque Arauco
InOutlet Faucett
Format Outlet Malls GLA (m²) 7,500
Partner Los Portales S.A. (49%)
Mega Express Villa Chorrillos
Format Neighborhood Shopping Center GLA (m²) 7,000
Partner Grupo Wiese (50%)
ViaMix Chorrillos
Format Strip Centers GLA (m²) 4,000
Partner Los Portales S.A. (49%)
Mega Express Villa El Salvador
Format Neighborhood Shopping Center GLA (m²) 9,000
Partner Grupo Wiese (50%)
Parque Lambramani
Format Regional Shopping Center GLA (m²) 30,000
Partner 100% Parque Arauco
Mega Express Chincha
Format Neighborhood Shopping Center GLA (m²) 7,000
Partner Grupo Wiese (50%)
Megaplaza Cañete
Format Neighborhood Shopping Center GLA (m²) 16,500
Partner Grupo Wiese (50%)
Megaplaza Barranca
Format Neighborhood Shopping Center GLA (m²) 9,500
Partner Grupo Wiese (50%)
Megaplaza Chimbote
Format Regional Shopping Center GLA (m²) 9,500
Partner Grupo Wiese (50%)
WE PARTICIPATE IN FOUR DIFFERENT FORMATS
REGIONAL SHOPPING CENTERS NEIGHBORHOOD SHOPPING CENTERS
STRIPCENTERS OUTLETS