Investor P resentation Investor Presentation First Quarter 2017 - - PowerPoint PPT Presentation
/ / 1 1 Investor P resentation Investor Presentation First Quarter 2017 First Quarter 2017 Parque Arauco CONTACTS SARAH INMON (HEAD OF INVESTOR RELATIONS) | EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) | CLAUDIO CHAMORRO (CFO) |TEL:
First Quarter 2017
CONTACTS
SARAH INMON (HEAD OF INVESTOR RELATIONS) | EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) | CLAUDIO CHAMORRO (CFO) |TEL: (562) 22990510 | EMAIL: IR@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 anticipa- ted 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
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
OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Parque Arauco
OPERATIONAL METRICS BY COUNTRY OPERATIONAL METRICS BY FORMAT
46.4% 61.7% 14.5% 8.7% 29.6% 39.1%
Parque Arauco is the third largest shopping center operator in Chile and Peru, and the fourth largest in Colombia.
25%
Foreign investment funds
21%
Local brokers
2%
Local mutual funds 6% Others
26%
Controlling Group
5%
Said Yarur Family
3%
Abumohor Family
12%
Local pension funds
DAILY TRADED VOLUME 1Q17: US$MM 3.4
85.6% 6.8% 2.7% 4.9% 79.9% 6.2% 4.0% 9.9%
Indicator/ Country CHILE PERU COLOMBIA TOTAL
Total GLA (m2)1 453,500 381,500 141,500 976,500 Owned GLA (m2) 415,414 270,750 123,275 809,439 Revenues LTM 1Q17 (US$MM)2 156 75 22 253 # of operations 25 18 3 46 MARKET CAP3 US$MM 2,353
SHAREHOLDER STRUCTURE (MARCH 2017)
Chile Peru Colombia Regional Neighborhood Outlet Strip center
TOTAL GLA1 976,500 M2 TOTAL REVENUES2 US$MM 253 TOTAL GLA1 976,500 M2 TOTAL REVENUES2 US$MM 253
Source: Parque Arauco. (1) Does not include Marina Arauco nor Mall Center Curicó. (2) Revenues from April 2016- March 2017. Exchange Rate: US$= 655.71 (3) Source: Bloomberg GLA(1) M2
1982 Parque Arauco Kennedy opens as first shopping center in Chile 1993 Arauco Maipu inaugurates in Santiago 1995 Parque Arauco S.A. IPO 1997 Inauguration of Marina Arauco in Viña del Mar, Chile 2006 Parque Arauco expands into Peru with the purchase of a 45%
stake in MegaPlaza Norte in Lima
2008 Parque Arauco acquires Arauco Estación in Santiago, Chile 2010 Parque Arauco opens first mall in Colombia, Parque Arboleda in Pereira 2011 Capital increase for US$145 MM 2012 Parque Arauco enters outlet format in Chile by acquiring Arauco
Premium Outlet Buenaventura
2014 Capital increase for US$182 MM 2015 Purchase of minority shareholders in Colombia and Peru 2016 Capital increase for US$100 MM
2012 2013 2014 2016 2015 UDM 2017
559,700 693,100 728,500 818,500 935,900 976,500
+1.7x
EBITDA(1) US$ MM
99 114 130 153 169 175
REVENUES(1) US$ MM
+1.8x
2012 2013 2014 2016 2015 UDM 2017
142 164 192 223 244 253
2012 2013 2014 2016 2015 UDM 2017
+1.8x
Source: Parque Arauco. Exchange Rate: US$= 655,71 (1) Does not include Marina Arauco nor Mall Center Curicó. 9%
REAL CAP RATE(1) REAL WACC (2) SPREAD OVER REAL WACC
6% 3%
Parque Arauco’s value creation is proven by the fact that it has had one of the highest “Total Return” of the real estate sector in the last years
Parque Arauco Iguatemi Multiplan Unibail Hammerson Simon S&P 500 Fibra Uno Falabella Inut Klepierre GGP Macerich IPSA Taubman BR Malls Aliansce Cencosud
17% 8% 12% 4% 15% 5% 10% 1% 16% 5% 11% 2% 13% 5% 9%
TOTAL RETURN1, LAST 5 YEARS ANNUALIZED, LOCAL CURRENCY TOTAL RETURN1, LAST 15 YEARS ANNUALIZED, LOCAL CURRENCY Keplierre Macerich Falabella Hammerson GGP Taubman S&P 500 Parque Arauco Simon Intu IPSA
5% 21% 19% 16% 15% 13% 11% 10% 8% 5%
FIXED VS VARIABLE RENTAL REVENUES AS OF MARCH 31, 2017 CONTRACT LENGTH (BASED ON % OF REVENUES)
32% 14% 14% 40% 100%
‹2 YEARS 2-3 YEARS 3-4 YEARS ›4 YEARS TOTAL
Our rental revenues are derived primarily from fixed contracts and are protected against inflation 40% of our contracts have a duration of more than 4 years and the average length is 6.0 years
15%
Variable Revenues
85%
Fixed Revenues
15%
Other Revenues
85%
Rental Revenues
INTRODUCTION
OUR OPERATIONS
INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS
Parque Arauco has iconic shopping centers in all three countries
PARQUE ARAUCO KENNEDY - CHILE PARQUE LA COLINA- COLOMBIA ARAUCO MAIPÚ - CHILE ARAUCO ESTACIÓN - CHILE LARCOMAR - PERÚ MEGAPLAZA NORTE - PERÚ Parque Arauco is concentrated in Santiago and Lima, which makes the company a “market specialist” in these cities
Santiago
ARAUCO MAIPÚ PARQUE ARAUCO KENNEDY ARAUCO PREMIUM OUTLET BUENAVENTURA ARAUCO ESTACIÓN ARAUCO QUILICURA
Santiago1: 59% del NOI de Parque Arauco
VILLA EL SALVADOR VILLA CHORRILLOS LARCOMAR MEGAPLAZA NORTE INOUTLET FAUCETT INOUTLET PREMIUM LURÍN
Lima Lima1: 18% del NOI de Parque Arauco
JESUS MARIA
(1) Santiago represents 95% of the NOI of Chile, Lima represents 66% of the NOI of Peru, and Bogota represented 59% of the NOI of Colombia in the fjrst quarter of 2017.. Colombia Perú Chile
Chile GLA (m2) % Ownership Owned GLA (m2) Occupancy Year of incorporation
Parque Arauco Kennedy 113,500 100% 113,500 95.7% 1982 Arauco Maipú 74,000 100% 74,000 98.6% 1993 Arauco Chillán 32,000 100% 32,000 99.9% 2007 Arauco Estación 66,000 83% 54,780 97.9% 2008 Arauco San Antonio 28,500 60% 17,032 95.3% 2009 Arauco Express1 33,000 53% 17,602 80.9% 2012 Arauco Premium Outlets2 44,500 100% 44,500 90.9% 2012 Arauco Quilicura 32,000 100% 32,000 100.0% 2013 Arauco Coronel 30,000 100% 30,000 93.5% 2017 Total Chile 453,500 92% 415,414 95.4%
Source: Parque Arauco (1) Arauco Express has 14 Stripcenters in Chile: 11 strip centers in Santiago, 1 in Viña del Mar, 1 in Calama, and 1 in Antofagasta. (2) Arauco Premium Outlet has four outlets located in Santiago, Concepción, Coquimbo and Curauma.In Chile Parque Arauco has 7 regional shopping centers, 4 outlets and 14 strip centers. The average age of the portfolio is 16 years.
Colombia Perú Chile
In Peru in the company has 6 regional shopping centers and 8 neighborhood shopping centers, 2 outlets and 2 strip centers. The average age of the portfolio is 6 years.
Peru GLA (m2) % Ownership Owned GLA (m2) Occupancy Year of incorporation
MegaPlaza Norte 111,500 50% 55,750 97.6% 2006 MegaPlaza Express Villa Chorrillos 8,000 50% 4,000 97.6% 2009 Larcomar 26,500 100% 26,500 95.8% 2010 Parque Lambramani 29,500 100% 29,500 84.4% 2010 MegaPlaza Chimbote 28,000 50% 14,000 95.0% 2012 MegaPlaza Express Villa El Salvador 9,500 50% 4,750 98.5% 2012 MegaPlaza Express Chincha 9,000 50% 4,500 85.5% 2013 InOutlet and Viamix(2) 22,500 100% 22,500 77.4% 2013 MegaPlaza Cañete 16,500 50% 8,250 98.0% 2013 MegaPlaza Express Barranca 10,000 50% 5,000 98.8% 2013 MegaPlaza Pisco 14,500 50% 7,250 95.8% 2015 El Quinde Cajamarca 30,500 100% 30,500 79.9% 2015 El Quinde Ica 36,500 100% 36,500 96.5% 2015 Plaza Jesús María 14,500 100% 14,500 59.9% 2016 MegaPlaza Jaén 14,500 50% 7,250 82.8% 2016 Total Peru 381,500 71% 270,750 91.3%
Source: Parque Arauco (1) Only partner in peru is Grupo Wiese, which includes MegaPlaza formats (50%). (2) InOutlet and Viamix includes two premium outlets in Lima and two strip centers in Lima. Colombia Perú Chile
Parque Arauco has 3 regional shopping centers in Colombia and the average age of the portfolio is 3 years
Colombia GLA (m2) % Ownership Owned GLA (m2) Occupancy Year of incorporation
Parque Arboleda 40,500 55% 22,275 95.6% 2010 Parque Caracoli 38,500 100% 38,500 85.2% 2013 Parque La Colina 62,500 100% 62,500 77.7% 2016 Total Colombia 141,500 87% 123,275 84.9%
Source: Parque Arauco INTRODUCTION OUR OPERATIONS
INVESTMENT HIGHLIGHTS
FUTURE DEVELOPMENTS
Our operations
Parque Arauco has 3 regional shopping centers in Colombia and the average age of the portfolio is 3 years
Consistent results in a challenging macroeconomic environment
Stable and diversified revenues
Solid corporate governance and increased concern with sustainability
Important growth
Strong commercial relationships with local and global businesses
Conservative debt structure and outstanding financial performance
Investment Highlights
Consistent results in a challenging macroeconomic environment
Parque Arauco is positioned in countries with strong macroeconomic prospects
2015
2.3%
2016
1.6%
2017f
1.7%
2015
3.3%
2016
3.9%
2017f
3.5%
2015
3.1%
2016
1.9%
2017f
2.3%
2014
7.4%
2015
6.0%
2016
4.9%
2014
8.2%
2015
4.9%
2016
7.6%
2014
5.9%
2015
7.1%
2016
7.2%
2015
18.0
2016
18.2
2017f
18.4
2015
31.1
2016
31.5
2017f
31.8
2015
48.2
2016
48.8
2017f
49.3
2015
23,682
2016
24,113
2017f
24,797
2015
12,389
2016
12,903
2017f
13,501
2015
13,833
2016
14,103
2017f
14,609
GDP GROWTH POPULATION (MILLIONS) GDP PER CAPITA, PPP RETAIL SALES GROWTH
Chile Peru Colombia Chile Peru Colombia Chile Peru Colombia Chile Peru Colombia
+10.3% +9.1% +9.7% +9.4%
Chile Peru
Tenant sales1 Revenues1 NOI1,2
Colombia
(1) Chile in MMCLP , Peru in ThPEN and Colombia in MMCOP . (2) Not including overhead expenses (Corporate headquarters, regional Services Center, Chile Division, Peru Division and Colombia Division)GLA1
964,673 1,055,186 93,504 101,989 83,272 91,361
UDM 1Q16
411,000 453,500
UDM 1Q17 UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17
Consistent results in a challenging macroeconomic environment
+11.2% +5.5% +8.5% +11.3%
2,639,233 2,783,435 226,453 245,603 170,056 189,282 343,000 381,500
UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17
+79.1% +24.1% +37.5% +52.4%
362,047 449,332 41,969 57,711 29,834 45,472 79,000 141,500
UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17 UDM 1Q16 UDM 1Q17
4Q16
7.2
1Q16
3.7
2Q16
7.7
3Q16
4.1
1Q17
2.6
3Q16
6.2
1Q16
7.0
1Q17
5.8
2Q16
4.3
4Q16
2.7
1Q16
9.9%
1Q17
10.3%
58%
Others
CHILE SAME STORE SALES / CHG. % CHILE SAME STORE RENT / CHG. % CHILE OCCUPANCY COST
42%
Anchor Stores
1) Peru’s Same Store Sales and Same Store Rent in 4Q16 do not include Larcomar due to contingencies.4Q16
5.7
1Q16
2Q16
11.5
3Q16
9.2
1Q17
8.2 8.4
4Q16
5.5
1Q16
11.2
2Q16 3Q16
5.3
1Q17
7.6
70%
Others 4Q15
13.4%
4Q16
15.0%
COLOMBIA SAME STORE SALES1 / CHG. % COLOMBIA SAME STORE RENT1 / CHG. % COLOMBIA OCCUPANCY COST
30%
Anchor Stores
PERU SAME STORE SALES1 / CHG. % PERU SAME STORE RENT1 / CHG. % PERU OCCUPANCY COST
6.8
4Q16
2.0
1Q16
2Q16 3Q16
1.6
1Q17
0.4
4Q16
5.8
1Q16
2Q16
9.3
3Q16
3.8
1Q17
4.6
41%
Others 1Q16
7.8%
1Q17
7.7%
59%
Anchor Stores
Consistent results in a challenging macroeconomic environment
Stable and diversified revenues
51 42 7 100
Medium to High Income: Includes ABC1 and C2 in Chile, A and B in Peru and 6, 5 and 4 in Colombia Medium Income: Includes C3 and D in Chile, C and D in Peru and 3 in Colombia Medium to Low Income: Includes E in Chile and Peru and 2 and 1 in Colombia
8.6% 29.9% 85.6% 6.8% 2.7% 4.9%
COUNTRY LEVEL DIVERSIFICATION (%REVENUES) SOCIO-ECONOMIC LEVEL DIVERSIFICATION (% REVENUES) FORMAT LEVEL DIVERSIFICATION (% REVENUES)
Chile Perú Colombia Regional Neighborhood Outlet Strip center
61.6%
Stable and diversified revenues
Outlets currently in our portfolio
Keys to the Premium Outlet Format >>
1 >> Location
Located near main cities
2 >> Brands
Premium name-brands
3 >> Discounts
More than 30% discount
ARAUCO PREMIUM OUTLET BUENAVENTURA, CHILE ARAUCO PREMIUM OUTLET CONCEPCIÓN, CHILE INOUTLET PREMIUM OUTLET LURIN, PERÚ INOUTLET FAUCETT, PERÚ ARAUCO PREMIUM OUTLET CURAUMA, CHILE ARAUCO PREMIUM OUTLET CURAUMA, CHILE Strong commercial relationships with local and global brands
Anchor Stores Non Anchor Stores
Malls
11 4 10 5 12
Years as a client
35 16 35 12 9
Total GLA (m2)
96.554 33.011 74.548 48.050 6.058
Country
CHILE PERU COLOMBIA CHILE PERU CHILE PERU CHILE PERU CHILE PERU COLOMBIA
18
11 7.316
CHILE PERU COLOMBIA
4
18 8.934
CHILE PERU COLOMBIA
14
14 2.307
CHILE PERU COLOMBIA
Source: Parque Arauco Strong commercial relationships with local and global brands
Source: Parque Arauco
NEW TENANTS PARQUE ARAUCO KENNEDY IN THE LAST 5 YEARS:
80% of new GLA leased in Parque Arauco Kennedy over the last 5 years has been leased to international brands. Many brands have opened their fjrst store in Chile in Parque Arauco Kennedy during the last fjve years including Tifgany & Co., Dolce & Gabbana, Forever 21, Bath & Body Works, Tory Burch, Victoria’s Secret, Omega, Versace Collection, Vince Camuto, and BCBG.
Local
NOMBRE GLAFOREVER 21 1,639 TOP SHOP 464 UNDER ARMOUR 445 LOUIS VUITTON 420 GUCCI 406 BANANA REPUBLIC 363 AMERICAN EAGLE 351 AEROPOSTALE 342 DOLCE & GABBANA 316 BURBERRY 276 EMPORIO ARMANI 247 SALVATORE FERRAGAMO 241 TIFFANY & CO 219 EL VOLCAN 218 BOLD 214
NOMBRE GLAETIQUETA NEGRA 209 MICHAEL KORS 208 RALPH LAUREN 207 TORY BURCH 201 ERMENEGILDO ZEGNA 197 ENTEL 190 ARTE ISABEL ANINAT 161 VICTORIA´S SECRET 129 ETAM 123 MILK 117 CANELA HOME & DECOR 105 METRO CUADRADO 114 JUSTICE 104 BATH & BODY WORKS 103 OCTOBER 102
OTHERS 3,020 TOTAL 14,956
INTERNATIONAL LOCAL
Solid corporate governance and increased concern with sustainability
Workplace Recognition Investor Relations Recognition Management Recognition Sustainability Recognition
Best Capital Markets Strategy: Andes in 2016. In 2016, Parque Arauco is part of the Dow Jones Emerging Market Sustainability Index. We are the first Latin American real estate company to be part
Best Investor Relations Department for Mid-Size companies according to Santander and Revista Capital in 2016. Parque Arauco was recognized by Great Place to Work in Chile and Peru in 2016.
Source: Parque Arauco Solid corporate governance and increased concern with sustainability
Environmental Management 1.We established the baseline for energy, water, greenhouse gases (GHG) and residual consumption in Chile, Peru and Colombia. 2.We developed an environmental management model, which will be implemented in 2017. 3.We continued sustainably building projects in Colombia (Parque La Colina) and Peru (InOutlet Premium Lurin). 4.We began a study to identify and prioritize climate change risks in some of our assets and projects. Social Management 5.We worked on designing a community relationship strategy and policy applicable to all of
6.We approved and implemented a corporate donation policy. 7.More than 20 foundations or social organization had access to free space in our assets. 8.Our intellectual disability intern program had more than 40 participants. 9.We supported more than 340 small entrepreneurs, with more than 20 local and emerging entrepreneur fairs. Corporate Governance
12.We strengthened our risk management team, which performed an exhaustive examination
13.We initiated a diagnostic with international experts in safety and security standards in our assets. 14.We continued being one of the best places to work, according to the ranking Great Place to Work. Other Highlights 15.We adhere to the United Nations Global Compact.
Emerging Markets Index.
2016 Highlights
Conservative debt structure and outstanding financial performance
LIABILITIES / EQUITY EBITDA/FINANCIAL EXPENSES NET FINANCIAL DEBT/EBITDA NET FINANCIAL DEBT / EQUITY 2012 2013 2014 2016 2015 1Q17
3.42x 3.89x 3.37x 3.33x 3.04x 3.01x
2012 2012 2013 2013 2014 2014 2016 2016 2015 2015 1Q17 1Q17
0.43x 3.85x 0.59x 5.00x 0.47x 4.25x 0.76x 5.87x 0.72x x 5.88x 0.74x 6.01x
> 2.50x < 1.40x < 1.50x
2012 2013 2014 2016 2015 1Q17
0.78x 0.89x 0.81x 1.14x 1.18x 1.14x
MARCH 2017
Conservative debt structure and outstanding financial performance
MARCH 2015
24 65 121 121 321 95 12 29 215
25-36 months 13-24 months 0-3 months 49-60 months 7-12 months 11-20 years 37-48 months 4-6 months 6-10 years 21-35 years171 10 124 111
300
68 17 10 180
25-36 months 13-24 months 0-3 months 49-60 months 7-12 months 11-20 years 37-48 months 4-6 months 6-10 years 21-35 years139 389
IMPROVEMENT IN LOCAL DEBT RATING
Fitch: AA- Feller: AA- ICR:AA-
BBB- BBB BBB+ A- AA- A AA A+ AA+
Source: Parque Arauco (1) Does not include accrued interests and the exchange rate is at the close
51% UF 67% UF 8% CLP 7% CLP 16% PEN 16% PEN 16% USD 11% COP 9% COP 4%
Variable
82%
Fixed
96%
Fixed
18%
Variable
DEC. 2016
SUMMARY OF DEBT BY CURRENCY LIABILITY AMORTIZATION PROFILE AND DURATION1 SUMMARY OF DEBT RATES
MARCH 2017 MARCH 2015
March 2015 (US$MM) Average Duration: 4.5 Years March 2017 (US$MM) Average Duration: 7.0 Years
Conservative debt structure and outstanding financial performance
T he cost of debt of Parque Arauco has decreased 160 points from 4.1% to 2.5% T he spread five years ago had collateral agreements, while the current spread is unsecured with no collateral.
Date: 12-12-2014 Base: 1.66% Spread: 1.74% Duration: 14.3 Date: 04-17-2015 Base: 1.62% Spread: 1.68% Duration: 14.77 Date: 10-12-2016 Base: 1.46% Spread: 1.02% Duration: 12.71 Generic long-term bond issued by Parque Arauco in Chile
Source: Risk America
Important growth opportunities
Source: Prepared using information published by the International Council
Parque Arauco analysis
Brazil
GLA: 14.7 million de m2 32% of total
Latin America
GLA: 46.1 million m2
Andean Region
GLA: 11.9 million m2 25% of total
Mexico
GLA: 17.4 million m2 38% of total
Argentina
GLA: 2.1 million m2 5% of total Indicator CHILE PERU COLOMBIA
Total GLA (th) 3,600 2,700 5,600 GLA Parque Arauco (th) 454 382 142 Market Share 13% 14% 3% Rank #3 #3 #4
PEAKING MATURING CLOSING
Chile Mexico Brazil Peru Colombia(1) Source: International Council of Shopping Centers, World Bank, Parque Arauco analysis (2) Source: AT Kearney Global Retail Development Index 2016 (3) Source: CBRE- How Global is the business of retail?. This report did not include Colombia.
Important growth opportunities
RETAIL SALES PER CAPITA AND GLA PER 1,000 INHABITANTS1 AT KEARNEY GRDI WINDOW OF OPPORTUNITY2
GLA per 1,000 habitants
Middle class is growing; consumers are willing to explores organized formats; government is relaxing restrictions Consumers seek
greater exposure to global brands; retail shopping districts are being developed; real estate is affordable and available Consumer spending has expanded significantly; desirable real estate is more difficult to secure; local competition has become more sofisticated Consumes are more used to modern retail; discretionary spending is higher; competition is fierce both from local and foreign retailers; real estate is expensive and not readily available
RETAIL PRESENCE BY COUNTRY3 (% OF GLOBAL BRANDS IN COUNTRY)
39.5%
Mexico21.0%
Chile Brazil20.7%
Argentina11.7%
Venezuela10.2%
Peru9.9%
United States 16,000 12,000 8,000 4000 Canada Australia UK Chile Mexico Colombia Peru Brazil ArgentinaRetail Sales Per Capita
51.5%
United States57.5%
UK Retail sales per capita GLA per 1,000 habitants Important growth opportunities
Total GLA in 2006
194,745 55,651 83,708 24,595 91,625 27,676 80,242 132,858 37,400 90,000 976,500
Total GLA in 2007 Total GLA in 2010 Total GLA in 2014 Total GLA in 2008 Total GLA in 2011 Total GLA in 2015 Total GLA in 2009 Total GLA in 2013 Total GLA in 2012 New GLA in 2016
Greenfjelds
650,143 m2
M&A
326,357 m2
Greenfield M&A
67% 33%
Total GLA 1Q2017
126,500
New GLA in 2017
30,000
Source: Parque Arauco INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS
FUTURE DEVELOPMENTS
2017 and onwards
New Projects Type Country Format Estimated Opening Date Total GLA m2 % ownership Owned GLA m2 Total Investment Local Currency Total Investment USDMM
Parque Angamos Development Chile Neighborhood 2H18 11,000 55% 6,050 886,000 35 MegaPlaza Villa El Salvador II Development Peru Neighborhood 2H17 11,000 50% 5,500 36,000 11 Various Projects SCP Development Peru Neighborhood 2H18 19,500 100% 19,500 180,000 54 Viamix Colonial Development Peru Strip Center 2H17 3,000 100% 3,000 25,000 7 Arauco Premium Outlet Bogota Development Colombia Outlet 2H17 13,000 100% 13,000 78,000 26 Subtotal 57,500 47,050 133
Expansions Type Country Format Estimated Opening Date Total GLA m2 % ownership Owned GLA m2 Total Investment Local Currency Total Investment USDMM
Parque Arauco Kennedy Expansion2 Expansion Chile Regional / Hotel 2H21 11,000 100% 11,000 5,355,000 211 Parque Lambramani Renovation Renovation Peru Regional 2H17 N/A 100% N/A 22,500 7 El Quinde Cajamarca Expansion Expansion Peru Regional 2H17 2,500 100% 2,500 40,000 12 Hotel Bucaramanga Expansion Colombia Hotel 2H17 N/A 100% N/A 17,500 6 Subtotal 13,500 13,500 236
Projects Incorporated in 2017 Type Country Format Estimated Opening Date Total GLA m2 % ownership Owned GLA m2 Total Investment Local Currency Total Investment USDMM
Arauco Coronel Acquisition Chile Regional 1Q17 30,000 100% 30,000 1,520,000 60 MegaPlaza Express Huaral Development Peru Neighborhood 1Q17 9,000 50% 4,500 46,500 14 Subtotal 39,000 34,500 74 New Landbank 3 Total 110,000 95,050 446 Remaining to Invest 281
1) Projects in Chile in UF, in Peru in ThPEN and in Colombia in MCOP 2) Exchange rate as of March 31, 2016: 26,472 CLP/UF, 655.7 CLP/USD, 2,920 COP/USD, 3.3 PEN/USD. 2) In addition to the 11,000 m2, this expansion includes a 401 room Hilton by Hilton Hotel and largest hotel convention center in Santiago. OPENING DATE: The shopping center opened on December 6, 2016. COMMERCIALIZATION STATE: 77.7% of the GLA is open. H&M opened on May 6, 2017.
BRANDS:
PROJECT DETAILS: Investment: 5,355,000 UF 5-star hotel: Hilton by Hilton Rooms: 401 Convention center: 3,000 m2 Parking spots: 700 Additional GLA: 11,000 m2
five star Hilton Hotel in Chile, a convention center, as well as the incorporation of new stores and more parking.
401 rooms, two restaurants, three bars, two pools, a gym and an executive lounge. It will have the largest hotel convention center in the country, with the possibility of hosting
flagship Falabella store with almost 25,000 m2 of GLA. This store will
expansion. HOTEL OPERATOR:
Name m2 % Ownership Total Cost (local currency) Total Cost (USD MM)
Quilicura 25,486 100% 78,000 3 Buenaventura 115,864 100% 455,000 18 Chicureo 47,614 100% 206,000 8 Los Andes 39,254 100% 117,000 5 Others in Chile 67,550 92% 522,000 21 Total Chile 295,768 98% 1,378,000 55 Parque El Golf - San Isidro 14,790 70% 109,000 34 Chimbote 42,657 100% 18,000 6 Talara 30,675 100% 9,400 3 Ica 12,643 100% 13,500 4 Chiclayo 6,609 100% 6,300 2 Lambayeque- MegaPlaza 25,260 50% 18,900 6 San Juan de Lurigancho- MegaPlaza 80,000 50% 10,415 3 Others MegaPlaza 106,157 50% 85,685 26 Total Peru 318,791 65% 271,200 84 Neiva 49,537 100% 18,000 6 Valledupar 46,000 100% 30,000 10 Barranquilla 56,166 100% 76,000 26 Total Colombia 151,703 100% 124,000 42 Total 766,262 85% 181
»Adjusted FFO Margin - AFFO / revenues »AFFO -Adjusted Funds From Operations: Net Profit -
Depreciation & Amortization - Other Income/expenses - Share
Differences - Income (Loss) for indexed assets and liabilities - Gains (losses) from the difference between the previous book value and the fair value of financial assets - Deferred tax+ Associates accounted Adjusted FFO
»Controlling Adjusted FFO -AFFO attributable to the
shareholders of the company
»Controlling FFO -FFO attributable to the shareholders of the
company
»EBITDA - Earnings Before Income Tax Depreciation and
Amortization: Revenues + Cost of Sales + Administration Expenses - Depreciation and Amortization EBITDA margin
»EPS -Earnings Per Share: Net income attributable to the equity
holders of the company/weighted average number of shares
»FFO -Funds From Operations: Net Profit - Depreciation &
Amortization - Share of Profit (Loss) of Associates Accounted + Associates Accounted FFO
»GLA -Gross Leasable Area. Equivalent to the sum of all the
areas available for lease
»Greenfield Projects - Organic development of new shopping
centers
»Landbank -Land held by the company for future development »LTM -Refers to information from the last twelve months »Monthly Revenues/m2 -Monthly revenues divided by the
»Monthly Sales/m2 -Monthly tenant sales divided by the
»Neighborhood Mall -A shopping mall with a GLA between
6,000 and 20,000 m2
» Net income margin -Net profit / revenues »NOI -Net Operating Income: Revenues + Cost of Sales +
Administration Expenses - Depreciation & Amortization + Associates accounted NOI
»Occupancy -GLA paying rent divided by total GLA »Occupancy cost -Minimum rent, plus variable rent, plus
common expenses, plus a promotion fund that the tenants pay Parque Arauco divided by the sales of the tenant.
»Owned GLA -Total GLA weighted by Parque Arauco’s interest
in the mall
»Pipeline
and expansion projects under development
»Premium Outlet - Shopping center located outside of the city
»Regional Mall - A shopping mall with a GLA over 20,000 m2. »SSR -Same Store Rent: Percentage change in rent collected
from tenants that paid rent in both of the periods compared
»SSS -Same Store Sales: Percentage change in sales from
tenants that reported sales in both of the periods compared
»Strip Center -A shopping center with a GLA less than 6,000 m2
Tenant Sales Tenant sales of the consolidated assets
»UF -Unidad de Fomento: A chilean currency unit indexed
according to inflation on a daily basis.
First Quarter 2017
CONTACTS
SARAH INMON (HEAD OF INVESTOR RELATIONS) | EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) | CLAUDIO CHAMORRO (CFO) |TEL: (562) 22990510 | EMAIL: IR@PARAUCO.COM