OUR OPERATIONS PERÚ » SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy LIMA MegaPlaza Norte 107,500 50 % 53,750 94.7% MegaPlaza Express Villa 7,000 50 % 3,500 99.3% Larcomar Fashion Center 26,000 100 % 26,000 95.3% MegaPlaza Express Villa 9,000 50 % 4,500 99.4 % El Salvador CHIMBOTE InOutlet Faucett 7,500 51 % 3,825 82.9 % BARRANCA Viamix Chorrillos 4,000 51% 2,040 N/A LIMA CHIMBOTE CAÑETE MegaPlaza Chimbote 28,000 33.5 % 9,380 99.9 % CHINCHA CHINCHA MegaPlaza Express Chincha 7,000 50 % 3,500 100.0 % AREQUIPA MegaPlaza Norte InOutlet Faucett AREQUIPA Larcomar Parque Lambramani 30,000 100 % 30,000 94.7 % MegaPlaza Express Villa Chorrillos and Viamix Chorrillos MegaPlaza Villa El Salvador CAÑETE MegaPlaza Cañete 16,500 50 % 8,250 99.9% BARRANCA MegaPlaza Express Barranca 9,500 50 % 4,750 100.0% TOTAL PERÚ 252,000 59.3% 149,495 95.8%
COLOMBIA PARQUE ARAUCO ENTERED THE COLOMBIAN MARKET IN 2008 AND SINCE THEN HAS BEEN LEADING THE CHANGE IN THE SHOPPING CENTER BUSINESS MODEL IN THE COUNTRY
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS PARQUE ARBOLEDA PARQUE CARACOLÍ
OUR OPERATIONS COLOMBIA » SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy PEREIRA Parque Arboleda 33,000 30.3 % 10,285 92.9 % BUCARAMANGA BUCARAMANGA PEREIRA Parque Caracolí 38,500 55 % 21,175 86.8 % TOTAL COLOMBIA 71,500 43.6% 31,460 89.6%
INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS FUTURE DEVELOPMENTS
FUTURE DEVELOPMENTS To date, Parque Arauco has announced projects that will add 132,300 m 2 of GLA over the next few years. Developments have been announced in Chile, Perú and Colombia and the total investment is estimated at US$ 579 million. Parque Arauco has a land bank valued at US$ 226.5 million (at acquisition cost), which will be used to support future growth and to develop shopping centers, outlet malls and strip centers in Chile, Peru and Colombia. GREENFIELD PROJECTS Location Format Estimated Total GLA Owned GLA Total NAME OF THE PROJECT % Ownership Opening Date (m 2 ) (m 2 ) Investment (MMUS$) Mall Outlet Curauma Chile Outlet Mall 4Q 2014 7,200 100.0% 12 7,200 Stripcenters Chile (Arauco Express) Chile Strip Center Under development 14,700 51.0% 35 7,497 Stripcenters Perú Perú Strip Center Under development 25,100 51.0% 72 12,801 MegaPlaza Pisco Perú Neighborhood 4Q 2014 14,000 50.0% 14 7,000 Others MegaPlaza Perú Various Under development TBD 50.0% 124 TBD La Colina Colombia Regional 1H 2017 63,400 55.0% 289 34,870 Total 124,400 546 69,368 EXPANSION PROJECTS Location Format Estimated Total GLA Total % Ownership Owned GLA NAME OF THE PROJECT Investment Opening Date (m 2 ) (m 2 ) (MMUS$) 1,000 9 100.0% Boulevard V Kennedy Expansion Chile Regional 1Q 2015 1,000 6,900 24 100.0% Buenaventura Expansion Chile Outlet Mall 4Q 2014 6,900 7,900 33 Total 7,900 Total 132,300 77,268 579
FUTURE DEVELOPMENTS LANDBANK Total Cost Name M 2 % Ownership (MMUS$) Quilicura 2 25,486 100% 3 Buenaventura 70,297 100% 16 Coquimbo 40,000 100% 4 Chicureo 47,614 100% 10 Los Andes 40,000 100% 5 Others in Chile 50,000 100% 23 TOTAL CHILE 273,397 100% 61 Parque El Golf 15,000 70% 28.5 Lurin 67,000 100% 14 La Molina 10,085 51% 16 Colonial 2,960 51% 2 Landbank IPSA 169,745 50% 19 TOTAL PERÚ 264,790 64% 79.5 Barranquilla 56,000 100% 54 Neiva 47,000 100% 11 Valledupar 54,000 55% 21 TOTAL COLOMBIA 157,000 85% 86 695,187 83% 226.5 TOTAL
AGENDA WELCOME ADDRESS THIRD QUAR ARTE TER R RESUL SULTS TS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
THIRD Q RD QUARTER R R RESULTS EDUARDO PÉREZ MARCHANT GERENTE DE FINANZAS HOLDING PARQUE ARAUCO INVE VEST STOR D DAY LIMA MA 2 2 014 14
FINANCIAL AND OPERATING RESULTS INCOME STATEMENT - CONSOLIDATED 3Q13 Chg. % 2014 2013 Chg. % CH$ THOUSANDS 3Q14 Revenues 30,784,238 26,136,196 17.8% 88,685,580 75,295,864 17.8% Cost of Sales (7,304,268) (5,427,593) 34.6% (20,667,518) (15,844,459) 30.4% Gross Profjt 23,479,970 20,708,603 13.4% 68,018,062 59,451,405 14.4% Administration Expenses (3,353,095) (2,972,418) 12.8% (10,411,194) (9,077,709) 14.7% OPERATING INCOME 20,126,875 17,736,185 13.5% 57,606,868 50,373,696 14.4% Depreciation & Amortization (1,069,819) (685,865) 56.0% (2,587,508) (2,062,384) 25.5% EBITDA 21,196,694 18,422,050 15.1% 60,194,376 52,436,080 14.8% Other Income / Expenses (288,046) (1,828,635) -84.2% (1,285,183) (4,769,623) -73.1% Financial Income 1,549,326 695,857 122.7% 3,682,371 2,748,521 34.0% Financial Expenses (6,804,619) (5,414,886) 25.7% (18,626,733) (13,793,406) 35.0% Share of Profjt (Loss) of Associates Accounted 1,275,828 1,169,250 9.1% 3,732,461 3,829,881 -2.5% Foreign Exchange Differences 1,830,529 (640,369) -385.9% 2,394,387 404,917 491.3% Income (Loss) for indexed assets and liabilities (1,687,822) (2,684,077) -37.1% (9,153,414) (2,816,785) 225.0% NON-OPERATING INCOME (EXPENSES) (4,124,804) (8,702,860) -52.6% (19,256,111) (14,396,495) 33.8% Profjt before Income Tax 16,002,071 9,033,325 77.1% 38,350,757 35,977,201 6.6% Income Tax (1,901,116) (910,171) 108.9% (6,593,456) (6,227,890) 5.9% NET PROFIT (LOSS) 14,100,955 8,123,154 73.6% 31,757,301 29,749,311 6.7% Attributable to: Equity holders of the company 12,428,020 7,034,562 76.7% 27,046,397 26,872,050 0.6% Minority interests 1,672,935 1,088,592 53.7% 4,710,904 2,877,261 63.7% NET PROFIT (LOSS) 14,100,955 8,123,154 73.6% 31,757,301 29,749,311 6.7%
FINANCIAL AND OPERATING RESULTS KEY PERFORMANCE INDICATORS 3Q13 Chg. % 2014 2013 Chg. % 3Q14 EBITDA Margin % 68.9% 70.5% -163 67.9% 69.6% -177 Net Income Margin % 40.4% 26.9% 1346 30.5% 35.7% -519 FFO (Ch$ Millions) 1 15,941 13,703 16.3% 45,250 41,391 9.3% FFO Margin % 51.8% 52.4% -64 51.0% 55.0% -395 Total Tenant Sales (Ch$ Millions) 2 320,611 279,129 14.9% 936,239 794,850 17.8% Total GLA (m 2 ) 3 718,000 642,100 11.8% 718,000 642,100 11.8% Owned GLA(m 2 ) 3 540,940 483,431 11.9% 540,940 483,431 11.9% Weighted Avg. Shares (Millions) 4 814.50 699.50 16.4% 789.22 699.50 12.8% EPS (Ch$ Thousands) 5 15.26 10.06 51.7% 34.27 38.42 -10.8% Stock Price (Ch$) 1,142.60 970.00 17.8% 1,142.60 970.00 17.8% Daily Traded Volume (Ch$ Millions) 415.39 1,085.00 -61.7% 999.30 1,331.00 -24.9% “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 fjrst strip center to our portfolio in Peru. This marks the fjrst 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 Saffje 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 fjve 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 Offjce Juan Antonio Álvarez. 1. FFO = EBITDA + FINANCIAL INCOME + FINANCIAL EXPENSES 2. TOTAL TENANT SALES = SALES OF CONSOLIDATED ASSETS 3. GLA OF MARINA ARAUCO NOT CONSIDERED 4. EXCLUDES 3,250,000 TREASURY SHARES 5.EPS = NET INCOME ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE COMPANY/WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING.
FINANCIAL AND OPERATING RESULTS OPERATING INCOME Revenues for the third quarter of 2014 increased 17.8% year- Consolidated occupancy remained stable at 95.1% in 3Q14. Total over-year to Ch$ 30,784 million. The growth was primarily the tenant sales for the quarter increased by 14.9% to Ch$ 320,611 result of additional GLA and improved rental revenues and tenant million. sales across nearly all of the Company´s existing properties. Total TENANT SALES (Ch$ M illions) 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 17.8% refmects the addition of Mall Outlet Concepcion, Strip Center 936,239 794,850 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 14.9% Faucett (Lima Outlet Center) in Peru contributed to the growth of 320,611 279,129 the Company´s GLA. REVENUES (Ch$ M illions) 3Q13 3Q14 2013 2014 Parque Arauco is committed to diversifying its asset base in 17.8% terms of formats. During the last twelve months, Parque Arauco 88,686 increased its GLA of outlet malls and strip centers by 42.5%. 75,296 During the third quarter Parque Arauco inaugurated its tenth strip center in Chile, Strip Center Las Brujas in La Reina, Santiago and 17.8% construction continued on Strip Center El Carmen de Huechuraba 30,784 26,136 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 2014 3Q13 3Q14 2013 neighborhood shopping center, MegaPlaza Pisco, continued.
FINANCIAL AND OPERATING RESULTS In keeping with the Company’s regional expansion strategy, revenue participation of assets outside of Chile continued to increase in the third quarter. Revenues from Colombia and Peru represented 36% of total revenues, up from 30.5% during the same period in 2013. During the third quarter of 2014, revenues from Chile totaled Ch$ 19,701 million, revenues from Peru were Ch$ 8,504 million, and revenues from Colombia reached Ch$ 2,579 million. 3Q14 REVENUES BY COUNTRY 3Q13 REVENUES BY COUNTRY 8.4% 8.2% Colombia Colombia 64.0% 69.5% Chile Chile 27.6% 22.3% Perú Perú 1H14 REVENUES BY COUNTRY 1H13 REVENUES BY COUNTRY 8.2% 6.6% Colombia Colombia 65.1% 70.7% Chile Chile 26.7% 22.6% Perú Perú Operating income during the third quarter of 2014 increased 13.5% to Ch$ 20,127 million. Cost of sales and administration expenses increased 26.9% during the period, reaching Ch$ 10,657 million. This increase is explained by additional expenses in territorial taxes, electricity and salaries.
FINANCIAL AND OPERATING RESULTS EBITDA The Company reported EBITDA of Ch$ 21,197 million during the third quarter of 2014, a 15.1% increase over 2013. The consolidated EBITDA BY COUNTRY 3Q14 EBITDA margin was 68.9%, compared with the previous year’s margin of 70.48%. The decrease refmects 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 5.6% during a period of intense growth. Colombia 67.3% EBITDA (Ch$ M illions) Chile 27.1% Perú 14.8% 60,194 52,436 15.1% 21,197 18,422 EBITDA BY COUNTRY 3Q13 2014 3Q13 3Q14 2013 6.0% Colombia and Peru´s contribution to the company´s EBITDA Colombia during the third quarter increased importantly to 32.7%, up 75.0% from 25% during the same period in 2013. During the quarter, Chile 19.0% EBITDA from operations in Chile totaled Ch$ 14,269 million, Perú Ch$ 5,734 million in Peru and Ch$ 1,193 million in Colombia.
FINANCIAL AND OPERATING RESULTS 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 fjnancial 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 infmation in 2014 than in 2013. Income taxes for the quarter increased to Ch$ 1.901 million as compared to the 2013 fjgure 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. 3Q14 3Q13 Chg. % 2014 2013 Chg. % CH$ THOUSANDS Real Income Tax (2,729,878) (1,212,648) 125.1% (7,289,635) (5,427,051) 34.3% Deferred Tax 828,762 302,477 174.0% 696,179 (800,839) -186.9% Total Tax (1,901,116) (910,171) 108.9% (6,593,456) (6,227,890) 5.9% Net profjt was up 73.6% in the third quarter due to the Company´s higher EBITDA and lower non-operating expenses. Net profjt 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 fjrst quarter 2014. This fjgure includes 3,250,000 treasury shares. FFO (“Funds from Operations”) for the quarter were Ch$ 15,941 million, as compared to Ch$ 13,703 million in 2013, representing a 16.3% increase.
BALANCE SHEET REVIEW BALANCE SHEET REVIEW ASSETS Dif. Ch$ millions 31.12.2013 Var. (%) 30.09.2014 Current Assets 117,108 158,556 35.4% 41,448 Non Current Assets 1,084,848 1,219,890 12.4% 135,042 Total Assets 1,201,956 1,378,445 14.7% 176,489 Current assets increased to Ch$ 158,556 million from Ch$ 117,108 million at the end of 2013 due primarily to an increase in cash and cash equivalents. Cash and cash equivalents increased to Ch$ 108,255 million from Ch$ 68,946 million as of December 31, 2013. The additional cash refmects the Ch$ 103,894 million capital increase completed during the fjrst 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 LIABILITIES AND EQUITY 30.09.2014 Dif. 31.12.2013 Var. (%) Ch$ millions Current Liabilities 78,383 76,064 3.0% 2,319 Non Current Liabilities 523,689 490,585 6.7% 33,104 Total Liabilities 602,072 566,649 6.3% 35,423 Equity 776,374 635,307 22.2% 141,067 Total Liabilities and Equity 1,378,445 1,201,956 14.7% 176,489 Current liabilities increased by Ch$ 2,319 million while non-current liabilities increased by Ch$ 33,104 million, mainly due to higher deferred tax liabilities. Total equity increased by Ch$ 141,067 million due mainly to the capital increase executed during the fjrst quarter of 2014.
BALANCE SHEET REVIEW FINANCIAL INDICATORS 30.09.2014 31.12.2013 Covenant Units Limit Ch$ million 458,464 441,378 Gross Financial Debt Ch$ million 350,209 372,432 Net Financial Debt times 4.3 5.0 Net Financial Debt / EBITDA (12 months) times 3.4 3.9 > 2.5 EBITDA / Financial Expenses (12 months) times 0.8 0.9 < 1.4 Liabilities / Equity % 13 13 Current Liabilities % 87 87 Non-Current Liabilities Net fjnancial debt at the end the third quarter of 2014 was $350,209 million. The Company remains comfortably within its fjnancial covenants, with Liabilities/Equity of 0.8 times as compared to a limit of 1.4 times and EBITDA/Financial Expenses of 3.4 times, above the limit of 2.5 times. Current MM$ Current MM$ Non Current MM$ Non Current MM$ CONCEPT 30.09.2014 31.12.2013 30.09.2014 31.12.2013 Financial Leasing 1,329 9,017 1,275 10,585 Bank Loans 46,011 264,401 29,373 270,492 Bonds 5,364 118,446 5,078 116,163 Hedge Liabilities - 13,895 - 8,412 TOTAL 52,704 405,760 35,726 405,652
CASH FLOW REVIEW BALANCE SHEET REVIEW CASH FLOW (CH$ MILLIONS) 30.09.2013 Var. % Dif. 30.09.2014 36,979 39,223 -6% (2,244) From Operating Activities (80,424) (111,897) -28% 31,473 From Investment Activities 79,585 43,648 82% 35,937 From Financing Activities 3,169 (2,223) -243% 5,392 Eff. of var. exchange rate on cash and cash equi. Net cash fmow during the period 39,309 (31,249) -226% 70,558 Cash and cash equivalents at beginning of period 68,946 103,782 -34% (34,836) Cash and cash equivalents at end of period 108,255 72,533 49% 35,722 Cash fmow from operating activities decreased by 6% to Ch$ 36,979 million. Investment activities during the semester generated a negative cash fmow 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 fmow of Ch$ 79,585 million which is mainly explained by the Ch$ 103,894 million capital increase that was executed during the quarter.
MAIN FINANCIAL INDICATORS MAIN FINANCIAL INDICATORS 1 FINANCIAL RATIOS 30.09.2014 30.09.2013 INDICATOR Unit Liquidity Level Current Assets / Current Liabilities times 2.02 1.99 Leverage Ratio Total Liabilities / Equity times 0.78 0.84 Short Term Debt Current Liabilities / Total Liabilities % 13.02 11.93 Long Term Debt Non Current Liabilities / Total Liabilities % 86.98 88.07 Interest Coverage Ratio EBITDA / Financial Costs* times 3.43 3.94 Net Profjt Net Profjt Ch$ mill. 57,607 50,374 Basic EPS Net Profjt att. Equity Holders / N° shares - trea. shares Ch$ 34.27 38.42 Return on Equity Net profjt att. Equity Holders / Av. Shareholders Equity* % 9.24 8.00 Return on Assets Net profjt att. Equity Holders / Average Total Assets* % 4.01 4.37 Return on Operating Assets Net Profjt /Average Operating Assets* % 5.23 5.46 Dividend Yield Dividends Paid Last 12 m. / Last Share Price % 2.36 2.80 Gross Profjt Margin Operating profjt / Revenues % 64.96 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. * CALCULATED USING RESULTS FROM THE LAST TWELVE MONTHS.
Var.% Total PORTFOLIO 2014 Name Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) GLA vs 2013 Parque Arauco Kennedy 115,000 100% 115,000 0% Arauco Maipu 75,000 100% 75,000 1% Arauco Chillán (Plaza El Roble) 31,500 100% 31,500 26% Paseo Arauco Estación 69,000 83% 57,270 1% Arauco San Antonio 28,500 51% 14,535 -2% Arauco Quilicura 32,000 100% 32,000 0% Arauco Express (Strip Centers) 18,000 51% 9,180 32% Buenaventura Premium Outlet 19,000 100% 19,000 -5% Outlet Mall Concepción 6,500 100% 6,500 Nuevo TOTAL CHILE 394,500 91% 359,985 5% Megaplaza Norte 107,500 50% 53,700 29% Mega Express Villa Chorrillos 7,000 50% 3,500 0% 0% Larcomar 26,000 100% 26,000 Parque Lambramani 30,000 100% 30,000 7% 0% Megaplaza Chimbote 28,000 34% 9,380 Mega Express Villa El Salvador 9,000 50% 4,500 0% -1% Mega Express Chincha 7,000 50% 3,612 Mega Express Cañete 16,500 50% 8,199 Nuevo 50% Nuevo Mega Express Barranca 9,500 4,754 InOutlet Faucett (Lima Outlet 51% 50% Center) 7,500 3,825 Viamíx Chorrillos 4,000 51% 2,040 Nuevo 59% 30% TOTAL PERU 252,000 149,495 Parque Arboleda* 33,000 30% 10,285 -3% Parque Caracolí 38,500 55% 21,175 1% TOTAL COLOMBIA 71,500 44% 31,460 -1% 718,000 75% 540,940 12% TOTAL ** *PARQUE ARBOLEDA DOES NOT INCLUDE OFFICE TOWERS **GLA OF MARINA ARAUCO NOT INCLUDED
PROPERTY LEVEL RESULTS NINE MONTHS 2014 Chile in MMCLP/ Perú in MPEN GLA Sales Revenue EBITDA Colombia in MMCOP 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % Parque Arauco Kennedy 115,000 115,200 0% 258,094 242,276 7% 27,099 25,331 7% 24,941 23,393 7% Arauco Maipú 75,000 74,000 1% 113,671 103,156 10% 8,346 7,733 8% 7,970 7,215 10% Arauco Chillán (Plaza El Roble) 31,500 25,000 26% 45,786 45,040 2% 3,190 3,095 3% 2,431 2,407 1% Paseo Arauco Estación 69,000 68,000 1% 75,210 69,863 8% 10,017 9,758 3% 8,741 8,455 3% Arauco San Antonio 28,500 29,000 -2% 23,840 22,869 4% 2,611 2,556 2% 1,728 1,758 -2% Arauco Quilicura 32,000 32,000 0% 31,160 19,578 59% 2,323 1,252 86% 1,865 871 114% Arauco Express (Stripcenters Chile) 18,000 13,600 32% 9,951 9,683 3% 1,712 1,640 4% 1,015 1,082 -6% Buenaventura Premium Outlet 19,000 20,000 -5% 22,930 20,053 14% 2,324 1,906 22% 1,794 1,401 28% Mall Outlet Concepción 6,500 - - 1,925 - - 227 - - 52 0 - TOTAL CHILE 394,500 376,800 5% 582,569 532,518 9% 57,848 53,271 9% 50,537 46,582 8% Megaplaza Norte 107,500 83,000 30% 799,892 731,182 9% 56,394 45,612 24% 44,767 35,603 26% Mega Express Villa Chorrillos 7,000 7,000 0% 47,541 41,607 14% 3,184 2,950 8% 2,380 2,070 15% Larcomar 26,000 26,000 0% 170,576 133,640 28% 24,405 19,654 24% 16,572 12,223 36% Parque Lambramani 30,000 28,000 7% 106,868 94,057 14% 8,284 7,543 10% 3,386 2,322 46% Mega Plaza Chimbote 28,000 28,000 0% 154,773 146,058 6% 7,650 7,183 6% 5,123 4,454 15% Mega Express Villa El Salvador 9,000 9,000 0% 45,479 36,505 25% 3,844 3,192 20% 2,879 2,251 28% Mega Express Chincha 7,000 7,300 -4% 21,769 12,935 68% 3,144 1,815 73% 2,251 998 126% Mega Plaza Cañete 16,500 - - 79,517 - - 4,046 - - 2,733 - - Mega Plaza Barranca 9,500 - - 25,969 - - 3,082 - - 2,046 - - InOutlet Faucett (Lima Outlet Center) 7,500 5,000 50% 32,427 25,047 29% 2,865 1,910 50% 2,464 1,520 62% Víamix Chorrillos 4,000 - - 1,406 - - - - - - - - TOTAL PERÚ 252,000 193,300 30% 1,486,216 1,221,032 22% 116,898 89,859 30% 84,601 61,440 38% 954,695 Parque Arboleda 33,000 34,000 -3% 109,779 99,986 10% 13,279 12,709 4% 10,279 10,633 -3% Parque Caracolí 38,500 38,000 1% 87,257 42,225 107% 11,924 6,253 91% 8,286 3,694 124% TOTAL COLOMBIA 71,500 72,000 -1% 197,036 142,211 39% 25,203 18,963 33% 18,564 14,327 30% 73,500 0%
PROPERTY LEVEL RESULTS NINE MONTHS 2014 Monthly revenue per m 2* Occupancy Monthly sales per m 2 * Chile in MMCLP/ Perú in MPEN EBITDA Margin Colombia in MMCOP 9M14 9M13 Var. b.p. 9M14 9M13 Var. b.p. 9M14 9M13 Var. % 9M14 9M13 Var. % Parque Arauco Kennedy 97.7% 98.4% -75 92.0% 92.4% -36 256,029 248,856 3% 26,882 26,019 3% Arauco Maipú 96.8% 97.2% -40 95.5% 93.3% 219 175,156 158,856 10% 12,861 11,908 8% Arauco Chillán (Plaza El Roble) 93.4% 91.3% 214 76.2% 77.8% -156 171,683 207,803 -17% 11,961 14,280 -16% Paseo Arauco Estación 97.8% 98.7% -90 87.3% 86.7% 56 124,257 115,612 7% 16,549 16,148 2% Arauco San Antonio 93.2% 94.7% -152 66.2% 68.8% -260 98,031 91,509 7% 10,739 10,228 5% Arauco Quilicura 98.8% 97.7% 112 80.3% 69.6% 1075 111,967 99,159 13% 8,345 6,341 32% Arauco Express (Stripcenters Chile) 83.9% 100.0% -1610 59.3% 66.0% -670 84,184 88,760 -5% 14,480 15,033 -4% Buenaventura Premium Outlet 92.4% 90.8% 164 77.2% 73.5% 370 137,311 122,021 13% 13,914 11,598 20% Mall Outlet Concepción 75.3% - - 22.8% - - 38,508 - - 4,537 - - TOTAL CHILE 95.7% 97.1% -135 84.4% 84.9% -44 172,919 168,266 3% 17,171 16,833 2% Megaplaza Norte 94.7% 92.0% 272 79.4% 78.1% 133 870 1,037 -16% 61 65 -5% Mega Express Villa Chorrillos 99.3% 99.9% -64 74.8% 70.2% 459 759 674 13% 51 48 6% Larcomar 93.5% 89.8% 372 67.9% 62.2% 571 768 626 23% 110 92 19% Parque Lambramani 94.7% 77.6% 1710 40.9% 30.8% 1009 428 434 -1% 33 35 -5% Mega Plaza Chimbote 99.9% 100.0% -8 67.0% 62.0% 497 615 621 -1% 30 31 0% Mega Express Villa El Salvador 99.4% 96.0% 337 74.9% 70.5% 437 573 490 17% 48 43 13% Mega Express Chincha 100.0% 95.0% 500 71.6% 55.0% 1663 338 257 32% 49 36 35% Mega Plaza Cañete 99.9% - - 67.5% - - 542 - - 28 - - Mega Plaza Barranca 100.0% - - 66.4% - - 317 - - 38 - - InOutlet Faucett (Lima Outlet Center) 81.0% 88.0% -698 86.0% 79.6% 646 655 913 -28% 58 70 -17% Víamix Chorrillos - - - - - - - - - - - - TOTAL PERÚ 95.8% 91.3% 450 70.5% 65.3% 524 695 771 -10% 55 57 -4% Parque Arboleda 92.9% 97.1% -425 77.4% 83.7% -626 387,879 343,950 13% 46,919 43,719 7% Parque Caracolí 86.8% 77.0% 976 69.5% 59.1% 1042 281,142 226,852 24% 38,418 33,597 14% TOTAL COLOMBIA 89.6% 86.5% 308 73.1% 70.7% 246 332,052 298,240 11% 42,473 39,767 7% *MONTHLY SALES/REVENUE PER M2 FIGURES ARE CALCULATED USING THE SALES/REVENUE OF THE PERIOD DIVIDED BY THE AVERAGE OCCUPIED GLA OF THE PERIOD.
PROPERTY LEVEL RESULTS THIRD QUARTER 2014 Chile in MMCLP/ Perú in MPEN GLA Sales Revenue EBITDA Colombia in MMCOP 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % Parque Arauco Kennedy 115,000 115,200 0% 83,443 82,360 1% 9,201 8,605 7% 8,484 7,979 6% Arauco Maipú 75,000 74,000 1% 37,220 36,680 1% 2,810 2,624 7% 2,736 2,432 13% Arauco Chillán (Plaza El Roble) 31,500 25,000 26% 14,931 15,007 -1% 1,076 1,009 7% 772 701 10% Paseo Arauco Estación 69,000 68,000 1% 25,410 23,986 6% 3,427 3,285 4% 3,114 2,936 6% Arauco San Antonio 28,500 29,000 -2% 7,296 7,211 1% 840 816 3% 587 561 5% Arauco Quilicura 32,000 32,000 0% 10,621 9,194 16% 806 628 28% 654 444 47% Arauco Express (Stripcenters Chile) 18,000 13,600 32% 3,877 3,511 10% 612 560 9% 357 374 -5% Buenaventura Premium Outlet 19,000 20,000 -5% 7,648 6,947 10% 770 624 23% 616 438 41% Mall Outlet Concepción 6,500 - - 1,438 - - 227 - - 52 - - TOTAL CHILE 394,500 376,800 5% 191,884 184,896 4% 19,769 18,151 9% 17,373 15,865 10% Megaplaza Norte 107,500 83,000 30% 285,912 245,438 16% 19,477 15,584 25% 16,217 10,996 47% Mega Express Villa Chorrillos 7,000 7,000 0% 16,782 14,430 16% 1,063 1,038 2% 838 708 18% Larcomar 26,000 26,000 0% 59,528 47,155 26% 8,624 6,676 29% 6,160 4,128 49% Parque Lambramani 30,000 28,000 7% 37,775 31,484 20% 2,872 2,584 11% 1,122 881 27% Mega Plaza Chimbote 28,000 28,000 0% 54,840 52,556 4% 2,647 2,535 4% 1,827 1,652 11% Mega Express Villa El Salvador 9,000 9,000 0% 16,355 12,975 26% 1,330 1,107 20% 983 770 28% Mega Express Chincha 7,000 7,300 -4% 7,905 7,624 4% 1,056 879 20% 775 555 40% Mega Plaza Cañete 16,500 - - 27,568 - - 1,612 - - 1,214 - - Mega Plaza Barranca 9,500 - - 9,622 - - 1,158 - - 800 - - InOutlet Faucett (Lima Outlet Center) 7,500 5,000 50% 13,830 11,829 17% 1,145 974 18% 1,013 767 32% Víamix Chorrillos 4,000 - - 1,406 - - - - - - - - TOTAL PERÚ 252,000 193,300 30% 531,522 423,493 26% 40,982 31,377 31% 30,949 20,456 51% Parque Arboleda 33,000 34,000 -3% 37,327 34,416 8% 4,490 4,308 4% 3,213 3,627 -11% Parque Caracolí 38,500 38,000 1% 30,955 23,971 29% 4,067 3,713 10% 2,643 2,656 0% TOTAL COLOMBIA 71,500 72,000 -1% 68,282 58,387 17% 8,558 8,022 7% 5,856 6,283 -7% 73,500 0%
PROPERTY LEVEL RESULTS THIRD QUARTER 2014 Monthly revenues per m 2* Occupancy Monthly sales per m 2 * Chile in MMCLP/ Perú in MPEN EBITDA Margin Colombia in MMCOP 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % Parque Arauco Kennedy 97.7% 98.4% -75 92.2% 92.7% -51 248,035 252,983 -2% 27,349 26,432 3% Arauco Maipú 96.8% 97.2% -40 97.4% 92.7% 469 171,930 169,549 1% 12,982 12,129 7% Arauco Chillán (Plaza El Roble) 93.4% 91.3% 214 71.8% 69.5% 228 148,737 209,522 -29% 10,724 14,087 -24% Paseo Arauco Estación 97.8% 98.7% -90 90.9% 89.4% 151 125,942 119,248 6% 16,984 16,332 4% Arauco San Antonio 93.2% 94.7% -152 69.9% 68.9% 102 90,546 85,758 6% 10,428 9,704 7% Arauco Quilicura 98.8% 97.7% 112 81.1% 70.6% 1054 113,615 105,580 8% 8,624 7,212 20% Arauco Express (Stripcenters Chile) 83.9% 100.0% -1610 58.3% 66.8% -848 95,095 90,646 5% 15,004 14,458 4% Buenaventura Premium Outlet 92.4% 90.8% 164 80.0% 70.2% 977 139,293 128,720 8% 14,022 11,562 21% Mall Outlet Concepción 75.3% - 22.8% - - TOTAL CHILE 95.7% 97.1% -135 85.5% 84.7% 81 168,107 171,433 -2% 17,319 16,829 3% Megaplaza Norte 94.7% 92.0% 272 83.3% 74.9% 836 936 1,069 -12% 64 68 -6% Mega Express Villa Chorrillos 99.3% 99.9% -64 78.8% 71.5% 729 805 698 15% 51 50 2% Larcomar 93.5% 89.8% 372 71.4% 61.8% 961 808 654 24% 117 93 26% Parque Lambramani 94.7% 77.6% 1710 39.1% 34.1% 495 448 453 -1% 34 37 -8% Mega Plaza Chimbote 99.9% 100.0% -8 69.0% 66.2% 283 653 659 -1% 32 32 -1% Mega Express Villa El Salvador 99.4% 96.0% 337 73.9% 71.1% 280 610 517 18% 50 44 12% Mega Express Chincha 100.0% 95.0% 500 73.4% 65.9% 749 370 370 0% 49 43 16% Mega Plaza Cañete 99.9% - - 75.3% - - 559 - - 33 - - Mega Plaza Barranca 100.0% - - 69.1% - - 338 - - 41 - - InOutlet Faucett (Lima Outlet Center) 81.0% 88.0% -698 88.5% 78.7% 980 765 863 -11% 63 71 -11% Víamix Chorrillos - - - - - - - - - - - - TOTAL PERÚ 95.8% 91.3% 450 73.4% 65.4% 798 740 797 -7% 57 59 -3% Parque Arboleda 92.9% 97.1% -425 71.6% 84.2% -1264 398,265 354,424 12% 47,909 44,365 8% Parque Caracolí 86.8% 77.0% 976 65.0% 71.5% -654 299,891 257,566 16% 39,403 39,901 -1% TOTAL COLOMBIA 89.6% 86.5% 308 68.0% 77.5% -949 346,706 307,023 13% 43,451 42,180 3% *MONTHLY SALES/REVENUE PER M2 FIGURES ARE CALCULATED USING THE SALES/REVENUE OF THE PERIOD DIVIDED BY THE AVERAGE OCCUPIED GLA OF THE PERIOD.
HIGHLIGHTS BY COUNTRY BUCARAMANGA PEREIRA CHIMBOTE BARRANCA LIMA CAÑETE CHINCHA AREQUIPA SANTIAGO SAN ANTONIO CHILLÁN CONCEPCIÓN
HIGHLIGHTS 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 offjcially inaugurated during the third quarter by members of the local government and Parque Arauco´s CEO Juan Antonio Álvarez. This quarter, tenant sales in Arauco Chillan decreased by 1%, income increased by 7% and EBITDA increased by 10%. In Parque Arauco Kennedy, the third quarter brought new improvements in terms of customer services. The Valet Parking service was expanded, enabling faster and easier access for customers wishing to use the service. At the same time, Parque Arauco began operating innovative interactive kiosks designed to enable customers to quickly sign up for Arauco Tag, the system that links the Parque Arauco Kennedy parking lot with customers’ highway toll payment system, making parking payment automatic and the process of entering and exiting the parking lots much more convenient.
The shopping mall initiated a new platform to communicate with its customers with the residents of Quilicura and its surroundings. New stores offering clothing and beauty launch of Revista Detalle (www.revistadetalle.cl.) The website is a blog that provides supplies also opened, including Americanino, Tua and Planet Sport improving the a way to keep customers informed of news related to fashion, technology, art and overall commercial mix of the shopping center. The mall continues to perform above gastronomy, among other topics. The expansion of the Luxury District continues, which expectations and this quarter tenant sales increased 16%, revenues increased 28% will add new stores to the high end mix. The expansion is expected to be completed and EBITDA increased 47%. during the fjrst quarter of 2015 and will add 1,000 m2 of GLA. During the quarter, tenant sales in Parque Arauco Kennedy increased 1%, revenues increased by 7% and In Arauco San Antonio, during the quarter the recently inaugurated Sonesta Hotel EBITDA increased by 6%. fully opened and began to see an increase in visits. The mall is also working on improving its commercial mix and has signed contracts to welcome new brands In Mall Arauco Maipu diversifjcation of the commercial mix continued and new stores during the coming months such as Maui and Sons. were added including Place Vendome, Audiomusica, Polemic, and GNC, offering an array of new products and services and further increasing the draw of the mall. During The expansion of Buenaventura Premium Outlet continues and is going as planned. the quarter, tenant sales increased 1%, revenues increased 7% and EBITDA increased Some space has already been handed over to retailers for them to complete the 13%. fjnishing of the interior space in order to open at the beginning of next year. During the quarter tenant sales increased 10%, revenues increased 23% and EBITDA In Arauco Paseo Estacion we continued remodeling and modernizing not only the increased by 41%. physical space but also the commercial mix, adding more highly demanded brands and remodeling one of the food courts. The mall is also modernizing its signage to help Mall Outlet Concepcion, which opened during the second quarter of this year, customers navigate the large mall surrounded by the main train and bus station in has been well received by the community and has quickly reached an occupancy Santiago. Tenant sales increased 6%, revenues increased 4% and EBITDA increased rate of 75.3%. Parque Arauco´s participation in premium outlet malls will further 6%. be expanded w ith the opening of Mall Outlet Curauma, expected to be completed during the fourth quarter of this year. The mall, located near the city of Valparaiso, During the third quarter of 2014 Mall Arauco Quilicura inaugurated Clinica Megasalud, will add 7,200 m2 of premium outlet retail to the coastal region of Chile. adding health care and dental care as services offered at the shopping center for the ARAUCO QUILICURA - SANTIAGO PARQUE ARAUCO KENNEDY - SANTIAGO STRIP CENTER COLON - SANTIAGO
HIGHLIGHTS BY COUNTRY PERÚ LARCOMAR, LIMA
In Peru, Parque Arauco announced the inclusion of the fjrst strip center into earn points that can be used in the mall and therefore encouraging customer its portfolio, ViaMix Chorrillos. Chorrillos, which has 4,000 m 2 of GLA, began loyalty. During the quarter tenant sales increased by 20%, revenues contributing to the company´s EBITDA during the third quarter. increased by 11% and EBITDA increased by 27% as compared to the same period in 2013. In Larcomar, Parque Arauco continued working to position the mall as the premier shopping center in the city. The upscale restaurant La Trattoria de During the third quarter of 2014, after the inauguration of its expansion, Mambrino, a well-known name in Lima, joined the already impressive list InOutlet Faucett saw its occupancy rate steadily increasing to 81%. During of upscale restaurants in the mall. In addition, a VIP parking area and Valet the tenant sales increased 17%, revenues increased 18% and EBITDA Parking service was incorporated. Finally the Larcomar webpage was re- increased 32%. launched with a new look and better information to improve the shopping experience even before the customer arrives. The efforts to renovate the mall Performance in all the MegaPlazas throughout Peru was very strong during can be seen clearly in the numbers - this quarter the tenant sales increased the quarter and revenues and EBITDA increased in every shopping mall. 26%, revenues increased 29% and EBITDA increased 49%. In MegaPlaza Norte, new stores were opened including U.S. Polo and the restaurant Mr. Shao, among others. In MegaPlaza Cañete, Coney Park, a In Parque Lambramani Parque Arauco continued improving the commercial store that offers entertainment for children opened. The neighborhood mix of the mall adding new stores and services including an Easy Taxi stand shopping center format will be expanded during the fourth quarter with to help customers fjnd transportation options safely. The mall´s customer the inauguration of MegaPlaza Pisco in the city of Pisco. The US$14 million rewards system “Puntos Bonus” gained traction and a number of new stores project will add 14,000 m 2 to the company´s portfolio and will include Plaza in the mall joined the program to enable purchases in their store help clients Vea, Estilos and Promart as the anchor stores. MEGAPLAZA NORTE - LIMA MEGAPLAZA CAÑETE- CAÑETE PARQUE LAMBRAMANI -AREQUIPA
HIGHLIGHTS BY COUNTRY COLOMBIA PARQUE CARACOLÍ, BUCARAMANGA
In Colombia, in Parque Arboleda, the interior of the offjce tower mall located in Bucaramanga. The mall showed strong growth with continues to be completed and will soon offer high quality, well tenant sales increasing 29%, revenues increasing 10% and EBITDA equipped space to business looking for commercial space in remaining fmat during the quarter. Pereira. The shopping center remains the preferred mall in the coffee region of the country and during the quarter the tenant Construction at Parque La Colina in Bogota is on schedule and sales increased 8%, revenues increased 4% and EBITDA decreased on budget. The shopping center will be Parque Arauco´s largest 11%, as the mall began paying territorial taxes in 2014. asset in Colombia and is expected to open during the fjrst half of 2017. The mall will include Falabella as its anchor store, various In Parque Caracoli, the Parque Arauco team continued improving international brands, and a variety of entertainment and service the commercial mix of the mall. The North American brand options in its 63,400 m 2 of GLA. American Eagle opened its second store in all of Colombia in the PARQUE LA COLINA, BOGOTA PARQUE ARBOLEDA, PEREIRA
CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEET 30.09.2014 31.12.2013 CH$ THOUSANDS 30.09.2014 CH$ THOUSANDS 31.12.2013 ASSETS LIABILITIES Current Assets Current Liabilities 108,255 68,946 Cash and Cash Equivalents Other Current Financial Liabilities 52,704 35,726 4,180 3,149 Other Current Non-Financial Assets Comm. Cred. and Other Acc. Payable 11,265 25,101 17,566 18,886 Trade Accounts Rec. and Other Rec. Current Acc. Payable to Rel. Parties 2,188 1,902 Accounts Receivable from Rel. Comp. 6,152 4,836 Current Provisions 1,508 2,330 Current Tax Receivable 22,404 21,291 Tax Liabilities 5,908 5,083 Total Current Assets Current Provisions for Employees 3,086 1,999 158,556 117,108 Other Current Liabilities 1,723 3,923 Total Current Liabilities 78,383 76,064 Non-Current Liabilities 405,760 405,652 Other Non-Current Fin. Liabilities 75,999 Deferred Tax Liabilities 100,194 17,736 8,934 Other Non-Current Liabilities 490,585 Total Non-Current Liabilities 523,689 Non-Current Assets 566,649 Other Non-Current Non-Fin. Assets 25,791 26,458 TOTAL LIABILITIES 602,072 Non-Current Accounts Receivable 278 808 EQUITY Non-Current Acc. Rec. with Rel. Part. 0 542 Issued Share Capital 336,925 233,643 Share of Profjt (Loss) of Associates Accounted 50,586 49,634 Treasury Shares (3,737) (3,737) Intangible Assets exc. Surplus Value 15,160 14,988 Accumulated Earnings (Losses) 294,211 290,550 Surplus Value 17,427 15,629 Premium on New Issued Shares 201 0 Property, Plant and Equipment 2,922 2,724 Other Reserves 4,853 (10,113) Investment Properties 1,068,376 947,839 Attrib. to Shareholders of the Company 632,453 510,344 Deferred Tax Assets 39,350 26,225 Minority Interest 143,921 124,963 Total Non-Current Assets 1,219,890 1,084,848 Total Equity 776,374 635,307 TOTAL ASSETS 1,378,445 1,201,956 TOTAL LIABILITIES AND EQUITY 1,378,445 1,201,956
CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW STATEMENT CH$ THOUSANDS 30.09.2014 30.09.2013 Var. % Net cash fmow from OPERATING activities 137,235,554 112,058,479 Receipts from sales of goods and services 22% (68,390,124) (42,350,581) Payments to suppliers for goods and services 61% (10,285,269) (8,142,149) Payments on behalf of employees 26% (1,213,151) (2,930,464) Income taxes refunded -59% (20,367,874) (19,412,553) Other inputs (outputs) in cash 5% 36,979,136 39,222,732 Net cash fmow from operating activities -6% Net Cash fmow from INVESTMENT activities (11.799.567) Cash fmows used for acquiring subsidiaries or other businesses (3.512.345) -70% (364.421) Loans to related entities (1.315.958) 261% (642.565) Purchases of property, plant and equipment (530.380) -17% (3.990) Purchases of intangible assets (138.202) 3364% 761.142 Proceeds from related entities 542.191 -15% 1.218.809 Dividends received 2.569.709 -29% (99.814.401) Purchases of other long-term assets (84.531.035) 111% (1.252.088) Other inputs (outputs) in cash 6.491.671 -618% (111.897.081) Net Cash fmow from investment activities (80.424.349) -28% Net cash fmow from FINANCING activities 112,306,650 13,708,498 719% Share Issuance 77,331,149 97,358,336 -21% Proceeds from long term debt 285,415 1,797,851 -84% Loans to related entities (80,198,278) (31,549,023) 154% Loan Payments 0 (1,004,809) N/A Loan payments to related entities (2,328,648) (1,355,084) 72% Financial leasing payments (23,900,658) (18,646,794) 28% Dividend payments 3,089,444 2,347,972 32% Interest received (17,815,653) (15,196,538) 17% Interest paid 10,815,939 (3,812,512) -384% Other inputs (outputs) in cash 79,585,360 43,647,897 82% Net cash fmow from fjnancing activities Net increase (decrease) in cash and cash equivalents, before the effect of changes in the exchange rate (29,026,452) 36,140,147 -225% Effects of variation in the exchange rate on cash and cash equivalents (2,222,811) 3,168,904 -243% Increase (decrease) in net cash and cash equivalent (31,249,263) 39,309,051 -226% Cash and cash equivalents at beginning of period 103,782,289 68,945,796 -34% Cash and cash equivalents at end of period 72,533,026 108,254,847 49%
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQ RQUE A ARAUCO PERÚ RÚ OVE VERVI VIEW AND S STRATE TEGY PARQUE ARAUCO PERÚ CASE STUDIES - LAMBRAMANI - LARCOMAR - INOUTLET FAUCETT
PARQUE ARAUCO P PERU OVERVI VIEW EW A AND S STRATEGY GY EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVE VEST STOR D DAY LIMA MA 2 2 014 14
INTROD ODUCTION T ON TO P PERÚ ‣ INTRODUCTION TO THE ‣ COMMERCIAL REAL ESTATE SECTOR INTRODUCTION TO ‣ PARQUE ARAUCO PERÚ
INTRODUCTION TO PERÚ ‣ PERU HAS A GDP OF US$377 BILLION AND A PER CAPITA GDP OF US$12,000 PERÚ HAS A LARGE GDP FOR REGIONAL STANDARDS AND A RELATIVELY SMALL PER CAPITA GDP US$ Billion, 2014 (F) US$, 2014 (F) Brazil 3.073 Chile 23.165 Mexico 2.143 Argentina 22.101 927 Argentina Mexico 17.925 642 Colombia Venezuela 17.917 546 Venezuela Brazil 15.153 410 Chile Colombia 13.459 377 Peru Peru 11.989 182 Ecuador Ecuador 11.352 Source: Internacional Monetary Fund (IMF) Source: IMF
INTRODUCTION TO PERÚ ‣ PERU HAS GROWN IMPORTANTLY BUT SHOWS SIGNS OF DECELERATION PERÚ HAS GROWN IMPORTANTLY IN THE LAST 3 YEARS BUT SHOWS SIGNS OF DECELERATION REAL GDP % CHANGE, AVERAGE 2012-2014 REAL GDP % CHANGE 8,5 Peru 5,1 Ecuador 4,5 6,5 6,0 4,5 5,8 Colombia 3,9 Chile 3,6 2,5 Mexico 1,3 Venezuela 1,3 Brazil 0,7 Argentina 2010 2011 2012 2013 2014 Source: IMF Source: IMF
INTRODUCTION TO PERÚ ‣ PERU IS EXPECTED TO CONTINUE TO LEADING THE REGIONAL IN TERMS OF GROWTH PERÚ WILL CONTINUE TO LEAD REGIONAL GROWTH PERÚ GDP GROWTH EXPECTATIONS REAL GDP % CHANGE, AVERAGE 2014-2017 REAL GDP % CHANGE 5,5 5,5 Peru 5,1 4,9 Colombia 4,6 3,6 Ecuador 4,5 Chile 3,4 Mexico 3,4 Brazil 1,7 Venezuela -0,9 Argentina -1,6 2014 2015 2016 2017 Source: IMF Source: IMF
INTRODUCTION TO PERÚ ‣ INTROD ODUCTION T ON TO T THE ‣ COMMERCIAL R L REAL L EST ESTATE SECTO TOR INTRODUCTION TO ‣ PARQUE ARAUCO PERÚ
INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR ‣ GLA GROWTH SINCE 2005 HAS BEEN SIGNIFICANT BUT HAS RECENTLY SLOWED NUMBERS OF SHOPPING CENTERS IN PERU EVOLUTION OF GLA IN PERU (thousands) 2.244 71 2.002 60 +22% +22% +24% +24% 1.598 50 45 1.380 1.211 38 964 28 785 24 601 19 489 14 382 10 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2013 2012 2013 2014 2014 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 ANNUAL VARIATION OF GLA (thousands) ANNUAL GROWTH RATE (%) 40 32 31 403 28 30 26 25 23 23 247 242 16 20 218 14 184 12 179 169 112 107 10 93 0 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2012 2011 2012 2013 2013 2014 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sources: ACEEP (Asociación de Centros Comerciales y Entretenimiento de Perú) and Apoyo (retail sector report)
INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR ‣ THERE IS OPPORTUNITY FOR GROWTH IN THE SECTOR GLA (M2) PER 1000 INHABITANTS % OF RETAIL SALES IN SHOPPING CENTERS 2013 2013 USA 2.200 Canada 65,0 Canada 1.369 USA 55,0 940 Australia Australia 51,0 197 Chile Chile 25,0 134 Mexico Peru 24,0 74 Colombia Mexico 24,0 65 Peru Brazil 20,0 64 Brazil Colombia 12,0 Source: International Council of Shopping Centers Source: International Council of Shopping Centers
INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR ‣ PRIVATE CONSUMPTION AND RETAIL SALES ARE EXPECTED TO GROW GDP (BILLION US$) AND GDP CHANGE (%) TOTAL, PRIVATE AND PUBLIC INVESTMENT GROWTH (%) 39% 30% 500 10 433 13% 12% 11% 11% 8% 403 0% TOTAL 377 400 8 358 333 309 24% 26% 284 16% -23% 300 6 259 254 11% 6% 6% 5% PRIVATE 0% 200 4 25% 23% -9% 16% 100 2 12% 9% 8% 6% PUBLIC 0% -2% 0 0 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2008 2009 2010 2011 2012 2013 2014 E 2015 E 2016 E Source: IMF Source: Banco Central de Reserva del Perú. INTERNAL DEMAND (MMUS$) AND CONSUMPTION (MMUS$) RETAIL SALES (MMUS$) AND RETAIL SALES CHANGE (%) 25 15 US$MM 2008 008 2009 009 2010 010 2011 011 2012 012 2013 013 2014E 014E 20,9 19,8 18,7 17,9 126, 26,43 434 125, 25,22 226 145, 45,22 220 160, 60,97 977 178, 78,86 865 197, 97,03 038 203, 03,54 540 20 16,9 10 Dome mesti tic 15,7 14,4 13. 13.6%% -3,3% 3% 14.9% 14. 7.7% 7% 8.0% 0% 7.0% 0% 3.3% 3% 13,8 Deman mand 15 12,9 78, 78,610 82,989 82, 91,595 91, 100, 00,61 614 110, 10,72 729 119, 19,96 966 125, 25,48 484 5 Private 10 8.9% 9% 2.8% 8% 8.7% 7% 6.0% 0% 6.1% 1% 5.4% 4% 4.6% 6% Consum umption on 0 24, 24,676 22, 22,934 28, 28,735 32,139 32, 37, 37,038 40, 40,584 40, 40,422 5 Private 23. 23.9% -9,1% 1% 25.9% 25. 11.0% 11. 15. 15.6% 6.4% 4% -0,4% 4% Invest stment 0 -5 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E Source: Banco Central de Reserva del Perú. Source: Banco Central de Reserva del Perú.
INTRODUCTION TO ‣ PERÚ INTRODUCTION TO ‣ THE COMMERCIAL REAL ESTATE SECTOR INTROD ODUCTION T ON TO ‣ PARQU QUE A ARAUC UCO P O PERÚ
INTRODUCIÓN TO PARQUE ARAUCO PERÚ ‣ PARQUE ARAUCO ENTERED PERU IN 2006 AND FOUND A COMMERCIAL REAL ESTATE SECTOR POORLY PENETRATED OUTSIDE LIMA AND WITH A LOW VARIETY OF FORMATS MARKET CONDITIONS ON 2006 HIGH EXPECTATIONS OF GDP GROWTH, CONSUMPTION GROWTH AND RETAIL SALES GROWTH LOW COMMERCIAL REAL ESTATE PENETRATION IN THE COUNTRY VERY LOW COMMERCIAL REAL ESTATE PENETRATION IN CITIES OUTSIDE LIMA LOW VARIETY OF FORMATS: MOSTLY REGIONAL SHOPPING CENTERS
INTRODUCTION TO PARQUE ARAUCO PERÚ ‣ THE COMPANY UNDERSTOOD THE HIGH POTENTIAL OF THE COUNTRY/SECTOR AND EXPANDED RAPIDLY THROUGH GREENFIELDS AND ACQUISITIONS BY WAY OF PARTNERSHIPS 15 300.000 GLA (m2) # of operations 11 10 Acquisitions 10 200.000 6 5 4 5 100.000 Greenfields 2 1 1 1 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Megaexpress Megaplaza Chincha Norte Megaexpress Wiese Megaplaza Megaplaza Megaplaza Villa El Megaexpress Norte Chimbote Cañete Group Salvador Villa Megaexpress Barranca Lambramani Lambramani 100% Parque Arauco Larcomar InOutlet ViaMix Los Portales Faucett Chorillos Group Agreement to develop Centenario Camino Group Real/Parque El Golf
INTRODUCTION TO PARQUE ARAUCO PERÚ ‣ WE HAVE SHOPPING CENTERS IN THE MOST IMPORTANT REGIONS IN PERU Regional Neighborhood Outlet Strip center Megap aplaza za Chimb mbote te Megap aplaza za Barranca ca Format Regional Shopping Center Format Neighborhood Shopping Center GLA (m²) 9,500 GLA (m²) 9,500 Partner Grupo Wiese (50%) Partner Grupo Wiese (50%) Megap aplaza za Norte rte Megap aplaza za Cañete te Format Regional Shopping Center Format Neighborhood Shopping Center GLA (m²) 107,500 GLA (m²) 16,500 Partner Grupo Wiese (50%) Partner Grupo Wiese (50%) InO nOut utlet Fa Faucett Meg ega Expres ess C Chin incha Format Outlet Malls Format Neighborhood Shopping Center GLA (m²) 7,500 GLA (m²) 7,000 Partner Los Portales S.A. (49%) Partner Grupo Wiese (50%) Larcom comar Fashi hion on Cent nter Pa Parque Lamb mbra raman ani Format Regional Shopping Center Format Regional Shopping Center GLA (m²) 26,000 GLA (m²) 30,000 Partner 100% Parque Arauco Partner 100% Parque Arauco Meg ega Expres ess V Villa lla C Chorrillo llos ViaM aMix Chor horrillos os Meg ega Expres ess V Villa lla E El Salvador Format Neighborhood Shopping Center Format Strip Centers Format Neighborhood Shopping Center GLA (m²) 7,000 GLA (m²) 4,000 GLA (m²) 9,000 Partner Grupo Wiese (50%) Partner Los Portales S.A. (49%) Partner Grupo Wiese (50%)
INTRODUCTION TO PARQUE ARAUCO PERÚ ‣ WE PARTICIPATE IN FOUR DIFFERENT FORMATS REGIONAL S SHOPPI OPPING CENTERS NEIGHBOR ORHOOD OOD S SHOPPING C CENTERS 4 Regional Shopping Centers 5 Neighborhood Shopping Centers 49,000 m² 191,500 m² STRI RIPCENTERS RS OUTL TLETS TS 1 Strip Center 1 Outlet Mall 7,500 m² 4,000 m²
INTRODUCTION TO PARQUE ARAUCO PERÚ ‣ BEING INDEPENDENT ALLOWS US TO PROVIDE THE RIGHT FORMAT WITH THE RIGHT COMMERCIAL MIX FOR EACH SPECIFIC GEOGRAPHY AND SEGMENT E X A M P L P L E # # 1 : R R E G I O N O N A L S S H O P P I O P P I N G C C E N T E R I N A A H I G H I I N C O M E / L A R G E G G E O G O G R A P H P H I C A R E A LARC RCOMAR 26,000 m 2 of GLA Lima population: 9.500.000 residents 100.0% 16.0% 1.3% 48.4% 3.9% 30.4% A B C D E TOTAL Source: Asociación Peruana de Empresas de Investigación de Mercados - APEIM E X A M P M P L E # 2 : : N E I G H B O R O R H O O D O D S H O P P O P P I N G C E N E N T E R E R I N A A M I D D L E L E I N C O M E / E / S M A L L L L G G E O G R A P H I C A A R E A E A MEGAPL APLAZ AZA A BARRAN ANCA A 9,500 m 2 of GLA Barranca population: 140.000 residents 3.8% 100.0% 21.5% 50.3% 21.8% 2.7% A B C D E TOTAL Source: Asociación Peruana de Empresas de Investigación de Mercados - APEIM
INTRODUCTION TO PARQUE ARAUCO PERÚ ‣ FUTURE GROWTH WE HAVE ANNOUNCED PLANS TO INVEST WE CURRENTLY HOLD AN IMPORTANT LANDBANK OF MORE THAN 250,000 M2 US$ 210MM IN PERU 210 2.960 264.790 10.085 15.000 67.000 169.745 72 138 Terrenos IPSA Lurin Parque El Golf La Molina Colonial Total Inversión IPSA Inversión SCP Total ADDITIONALLY: WE ANNOUNCED AN AGREEMENT WITH GRUPO CENTENTARIO TO DEVELOP A NEW PROJECT THAT WILL INTEGRATE OUR PIECE OF LAND IN SAN ISIDRO IN LIMA (PARQUE EL GOLF) WITH THE CAMINO REAL COMMERCIAL CENTER CURRENTLY OWNED BY GRUPO CENTENARIO WE ANNOUNCED A MEMORANDUM OF UNDERSTANDING TO PURCHASE EL QUINDE SHOPPING CENTERS IN ICA AND CAJAMARCA, AND 143,000 M2 OF LANDBANK, FOR A TOTAL ENTERPRISE VALUE OF US$100MM
AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQ RQUE A ARAUCO PERÚ RÚ CAS ASE STUD STUDIES - PARQUE L LAMB MBRAMAN MANI - LAR ARCOMAR AR - INOUTL UTLET F T FAUC UCETT
CASE SE STU STUDY PARQUE L E LAMBR MBRAMA AMANI EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVE VEST STOR D DAY LIMA MA 2 2 014 14
LAMBRAMANI CASE STUDY ‣ IN 2008, AREQUIPA WAS A CITY WITH STRONG GDP GROWTH AND A LOW PENETRATION OF SHOPPING CENTERS AREQUIPA HAD STRONG ECONOMIC PERSPECTIVES AND A LOW PENETRATION OF SHOPPING CENTERS Existing commercial real estate in 2008: - 1 Plaza Vea - 1 Falabella - 1 Maestro Home Center Arequipa was the second largest city in Perú with a population of almost 800,000
LAMBRAMANI CASE STUDY ‣ IN 2009, PARQUE ARAUCO BEGAN DEVELOPING A SHOPPING CENTER IN AREQUIPA
LAMBRAMANI CASE STUDY ‣ FIVE REGIONAL SHOPPING CENTERS HAVE OPENED SINCE 2010 Parque Lambramani: Arequipa Shopping 30.000 m2 of GLA Center Opened in 2010 Real Plaza Arequipa Real Plaza Arequipa: 25.000 m2 of GLA Open Plaza Arequipa Opened in 2010 Open Plaza Arequipa 42,000 m2 of GLA Opened in 2010 Parque Lambramani Aventura Plaza Arequipa: 68.000 m2 of GLA Opened in 2011 Mall Aventura Plaza Arequipa Arequipa Shopping Center 30.000 m2 of GLA Expected to open in 2014
LAMBRAMANI CASE STUDY ‣ EXCLUDING LIMA, AREQUIPA HAS THE HIGHEST COMMERCIAL REAL ESTATE PENETRATION IN PERU M2 GLA GLA/1000 HAB. Arequipa Arequipa 176 141 Piura Ucayalí 143 135 La libertad 138 Ica 131 Ica 100 Piura 79 Lambayeque La libertad 64 77 Ucayalí 64 Lambayeque 52 Cajamarca Lima provinces 62 50 Lima provinces Cajamarca 46 41 Junín 40 Huánuco 34 Áncash Junín 32 30 Huánuco 28 Áncash 28 Puno 25 Cusco 19 Cusco Puno 24 18 San Martín 3 San Martín 3 1 Source: Asociación de Centro Comerciales del Perú, (ACCEP) 2013 1 Source: ACE Perú 2013
LAMBRAMANI CASE STUDY ‣ WE CREATED A PLAN TO FACE THE HIGH COMPETITION TAKING INTO CONSIDERATION THE SCENARIO OF …WE CREATED A PLAN TO BRING MORE HIGH COMPETITION… CLIENTS TO OUR SHOPPING CENTER 1. 1. Conc oncent ntration o n of A Anchor or S Stor ores 1 2. 2. Commer ercial al a and M Market eting P Plan 2 - Purchase awards ds - Even ents - Medi edia camp mpaign - Night ht sales es - Te Tenant support
LAMBRAMANI CASE STUDY ‣ WE FOUND AN OPPORTUNITY to IMPROVE THE MIX OF ANCHOR STORES IN LAMBRAMANI 1 WE UNDERSTOOD THAT GIVEN THE COMPETITIVE WE CHANGED THE TWO LEVEL WONG SCENARIO A WONG SUPERMARKET WAS NOT THE SUPERMARKET INTO A METRO BEST ANCHOR STORE FOR LAMBRAMANI SUPERMARKET ON THE FIRST FLOOR… …AND A PARIS DEPARTMENT STORE ONTHE SECOND FLOOR
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: PURCHASE AWARDS 2 AUTOLIQUIDABLE DE AUTOLIQUIDABLE DE AUTOLIQUIDABLE DE VAJILLA MONEDEROS RENZO COSTA TARJETEROS RENZO COSTA • DURATION: March 15 - 31 • DURATION: April 28 – May 9 • DURATION: May 10-30
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: PURCHASE AWARDS 2 AUTOLIQUIDABLE DE CELEBRAMOS TU PRIMERA AUTOLIQUIDABLE DEL CINE COMPRA CON BONUS ANIS NAJAR • DURATION: Ongoing • DURATION: August 1- 15 • DURATION: September 5 - October 15
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: FEBRUARY EVENTS 2 Peruvian Pisco Day, pisco tasting with “El Gaucho” (barbeque restaurant). Roxette concert for Valentine´s Day. Make-up clases with Montalvo beauty salon. “GO Icarus” concerts every Friday.
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: MARCH EVENTS 2 Women´s Day. Happiness Day Andrés Vásquez concert every Friday. Musical performance by “Las Cajoneritas” in the plaza.
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: JUNE EVENTS 2 Runway show with Esika, attended by Maju Mantilla, ex Miss World. Inauguration of art work by Toulouse Lautrec. Barra Móvil kickoff with Cerveza Arequipeña. Canchita kickoff with Diario DEPOR.
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: SEPTEMBER EVENTS 2 Casting for Perú Tiene Talento. Shopping Day. Gianmarco tribute with Joel Cuba. Ecológica marathon
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: NIGHT SALES 2
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: TENANT SUPPORT 2 Book Exhibition: support for Zeta Bookstore
LAMBRAMANI CASE STUDY ‣ COMMERCIAL AND MARKETING PLAN: TENANT SUPPORT 2 Fashion Show: support for several womens apparel brands such as Emporium, Roox, Dunkervolk, Bughi, Squeeze, Exit, Scrombro, Paris, Estilos, Adidas, Merrel, Marathon, Ecco, Milano Bags, Pasarela, Bata ,Renzo Costa, Nike, and others.
LAMBRAMANI CASE STUDY ‣ LAMBRAMANI SALES HAVE INCREASED GRADUALLY IN THE LAST YEARS 3 TENANT SALES MMPEN +13% 146 133 +10% 129 2012 2013 2014* *October 2013 - September 2014
CASE SE STU STUDY LARCO COMAR AR EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVE VEST STOR D DAY LIMA MA 2 2 014 14
LARCOMAR CASE STUDY ‣ LARCOMAR WAS BUILT IN 1998 BY GRAÑA & MONTERO HOLDING ABOUT LARCOMAR LARCOMAR DURING THE NINETIES Larcomar was built on a cliff overlooking the Pacific Ocean in the Miraflores sector of Lima, one one of of th the bes est neighb hbor orho hood ods in in the he city, ma made up up primarily ily of of weal ealthy familie ilies. Miraflores is also one of the most popular tourist destinations in Lima as there are many hotels and tourist attractions in the area. Since its inauguration, Larcomar has been one one of of th the mo most em emblem emat atic sp spots in in Lima ma, known for its architectural uniqueness. It has also been a hotspot for people visiting the city and is listed in many international guide books on Lima. Before Parque Arauco took control, the shopping mall performed below expectations. Th The comme ommercial mix ix of of th the ma mall wa was tailored ed prim imaril ily fo for to tourists ts, 50 50% of of th the ma mall´s GL GLA wa was de dedi dicate ted to to en enter ertai ainmen ent such uch as as movie vie theat ater ers and nd ni night ght cl club ubs. But given the mall´s design, location and international draw, it was clear this shopping center held much more potential.
LARCOMAR CASE STUDY ‣ PARQUE ARAUCO ACQUIRED LARCOMAR IN 2009 ABOUT THE ACQUISITION LARCOMAR TODAY As Parque Arauco was seeking potential greenfield projects to develop it was also actively monitoring the market for potential acquisitions. At that time Larcomar was positioned as a shop hopping ng center er and nd ent ntertainm nment nt cent nter strong ongly ori rien ented to to to tourists ts as a result of a weak offering of retail brands and the market situation. The 26,000 m2 mall was an attractive acquisition option for Parque Arauco. It was a well-built project in a pr prim ime loc ocation on wit ithin in a very ery at attrac active sector or of of Lima. The socio- economic profile of Miraflores would provide exposure for Parque Arauco to a differe rent typ ype of of custome mer tha han in in Megap aplaz aza Nor orte, which was in a predominately middle class area in northern Lima. During 2009 Larcomar registered tena nant nts sa sales of of US US$ 50 50 millio million and EBITDA of US$ 5,7 million. Parque Arauco finalized the purchase of 100% of Larcomar in July of 2010 for US$ 58 million.
LARCOMAR CASE STUDY ‣ A PLAN WAS DEVELOPED TO RENOVATE AND IMPROVE THE EMBLEMATIC SHOPPING CENTER LARCOMAR WAS DEPRECIATED AND HAD A POOR A PLAN WAS CREATED TO REPOSITION TENANT MIX TARGETED MAINLY AT TOURISTS LARCOMAR One of the major potential points for improvement in 1. 1. Face e Lifting ng 1 Larcomar was the profitability of the commercial mix. Parque Arauco wanted to transform Larcomar into not just the most popular mall for tourists but also the first option of the residents of the surrounding areas of 2. 2. Comme mmercial Mix 2 Miraflores, San Isidro, Barranco and San Borja. This meant changing the commercial mix and offering more international retail brands as well as evaluating the best placements of the stores within the mall. 3. 3. Repos ositioni oning 3 As the commercial team was working on the tenant mix, the engineering team was looking for ways to improve the look of the mall. Many renovations were needed for the central plazas, service areas, mall accesses, and parking lots. The façade floors, lighting system and signage also needed to be updated.
LARCOMAR CASE STUDY ‣ FACELIFTING: BEFORE AND AFTER 1
LARCOMAR CASE STUDY ‣ FACELIFTING: BEFORE AND AFTER 1
LARCOMAR CASE STUDY ‣ FACE LIFTING: LARCOMAR TODAY 1
LARCOMAR CASE STUDY ‣ CHANGE IN THE COMMERCIAL MIX: NEW BRANDS 2
LARCOMAR CASE STUDY ‣ CHANGE IN THE COMMERCIAL MIX: NEW RESTAURANTS 2
LARCOMAR CASE STUDY ‣ CHANGE IN THE COMMERCIAL MIX: ENTERTAINMENT ALTERNATIVES 2
LARCOMAR CASE STUDY ‣ REPOSITIONING: PAPER MEDIA SUMMER 2014 3
LARCOMAR CASE STUDY ‣ REPOSITIONING: PAPER MEDIA MOTHER’S DAY 2014 3
LARCOMAR CASE STUDY ‣ REPOSITIONING: NEWSLETTER SUMMER 2014 3
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