Diapositiva 1

Enjoy S.A.
June 2013
Executive summary
Enjoy:
• Leader in the Chilean gaming industry, with a successful track record dating back over 37 years
• Comprehensive casino, hotel, restaurant, bar, event, show and tour operator, with gaming as
its core business
• Significant diversification and atomization of revenues (markets, activities and customers)
• Financial strengthening (BBB bonds)
• Steady cash flow growth perspectives based on:
•
•
•
Recent investments
New licenses
Attractive projects
• Strong management and corporate governance
• Only LatAm entertainment company listed on the stock exchanges
• US$ 320 million in revenues in FY2012
Antofagasta
Coquimbo
Santiago
Viña del Mar
2
Colchagua
Pucón
Puerto Varas
Mendoza
Contents
• Regulatory framework
• Growth potential
• Enjoy
• Conrad Punta del Este transaction
3
Chilean gaming Industry: backed by a solid
regulatory framework
• New regulatory framework (law 19995 enacted in 2005) lays the groundwork for the stable,
transparent and profitable development of this industry
Homogeneous
framework
• Maximum number of licenses. Expanded from 7 to 25 (7 municipal and
18 under new law)
• Licenses awarded via investment project bids
• License terms:
Geographic
Exclusivity
• Municipal until December 31st, 2015
• New licenses, 15 years from the start of operations
• Exclusive rights to relevant market: 70 km radius
• Tax treatment: 20% on net gaming revenues
Regulatory
Control
• Strictly regulated
4
… harboring vast potential for growth
•
Recent industry makeover with the
enactment of new gaming law
Very appealing, draws investors’ interest:
• Proposals exceed US$ 4.5 billion
• Investments exceed US$ 1 billion
Opportunities:
• Potential market growth
• New operations mismanaged, operational
economies of scale available
•
•
Gross gaming revenues - Chile
(US$ Million)
1.000
800
600
400
200
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Source: SCJ, Global Entertainment and Media Outlook 2010 – 2015
* 2012 – 2015 Pwc forecast
Entertainment spending and income
Casino Gaming markets as % of GDP
(ThUS$ per capita)
Spending
1,4
0,44%
1,2
0,39%
USA
1,0
0,8
0,23%
0,6
Spain
0,4
Argentina
South
Africa
Mexico
0,2
0,0
0
5
10
Australia
Chile
0,09%
0,07%
Brazil
15
20
25
30
35
40
45
50
55
South Africa
Income
Source: IMF , Global Entertainment and Media Outlook: 2008-2012, INE
Source: GBCC
5
US
Asia Pacific
South America
Europe
Enjoy is the gaming industry leader in Chile…
•
•
Enjoy is Chile’s leading casino operator, with over 37 years’ experience
•
•
Alongside these casinos, Enjoy has 6 hotels for a total 727 rooms (171 apartment).
In 2012 the Company operate a chain of 8 casinos (1 in Argentina), with 6,015 slot machines, 277
gaming tables, 52 food & beverage points of sale and over 1,000 bingo positions.
The Company implements a proven, successful one-stop entertainment model, becoming an
industry benchmark in Latin America
Market shares in Chile (Dic 2012)
#1
#1
Enjoy
Others
59%
Gross Revenues
USD 825 million
#1
Enjoy
Enjoy
Enjoy
41%
Others
58%
Slots Machines –
Country Total
12.123
6
Enjoy
42%
Others
56%
Gaming Tables –
Country Total
593
Enjoy
44%
Source: SCJ and Enjoy estimate
Enjoy has a proven, successful business model…
With gaming its core business, this one-stop model
allows it to:
• Meet a large number of entertainment needs in
a single location: gaming, restaurant, hotel,
tourism, events, congresses, night clubs and
spa
• More patrons, longer permanence
• Diversified income sources and cross selling
• The above is leveraged by the synergies,
7
Economy
of Scale
Loyalty
Program
Comprehensive
offering
chain
Quality
Service
customer loyalty and economies of scale of the
… allowing it to rely on diversified revenues…
•
Atomized revenues leveraged by slot-machine gamers
•
Cross-selling between products / services
•
Markets diversified through multiple licenses / operations
•
Premier-quality licenses in main population centers and areas with high tourism potential
Source: Enjoy
Revenues by line of business
Gaming Revenue
Others
Hotel 6%
8%
Revenues by business unit1
Table Games
19%
Chiloé
3% Mondoza
5%
Antofagasta
18%
Pucón
14%
FF&BB
15%
Gaming
71%
Coquimbo
23%
Santiago
21%
Slots
Machines
81%
Viña del
Mar
16%
Source: March 2013 Enjoy
1
8
Accounting guidelines require considering 53% of Mendoza
… originating from profitable businesses…
Evolution of FF&BB revenues
• All of Enjoy’s businesses are profitable and generate
2010
synergies, significantly leveraging traffic flows
2011
2012
2013
3000
• Vast array of food and beverage varieties and points of
2500
CLP$ mm
sale (F&B)
• Hotel complements the gaming and F&B businesses
and raises demand for event centers
• Average occupancy 2013: 67%
2000
1500
1000
500
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011
2012
2013
1600
100%
2010
2011
Revpar1
2012
2013
2011
2012
2013
80
70
1400
80%
60
1200
50
60%
1000
40
40%
20
20%
10
200
1
9
Dec
Nov
Oct
Sep
Jul
Jun
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
Apr
-
0%
0
Mar
400
30
Feb
600
Jan
800
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
CLP$ mm
2010
Aug
2010
Hotel occupancy
May
Hotel revenues
Average revenues per room
In $ of each month
Source: Enjoy
… growing and stable in the face of business cycles
Evolution of IPSA ($)
6.000
5.000
Fall of Lehman Brothers
4.000
3.000
2.000
1.000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Gross gaming revenues evolution and mix1 in casinos operated by Enjoy ($ millions)
180.000
90%
160.000
80%
140.000
70%
120.000
60%
100.000
50%
80.000
40%
60.000
30%
40.000
20%
20.000
10%
0
0%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Gaming Revenues ($ millons)
Table Games (%)
1
Considers revenues plus VAT from slot machines, tables and bingo
Source: Enjoy
10
Slot Machines (%)
Enjoy’s licenses are also highly diversified, located in the main
urban and/or tourist hubs …
License type
Number of
license
Effective term
Enjoy license
Start
operations
End of license
31-12-2015
Coquimbo
1994
Dec. 2015
31-12-2015
Viña del Mar1
1975
Dec. 2015
31-12-2015
Pucón
1995
Antofagasta
Nov. 2008
Dec. 2023
Santiago
Ago. 2009
Ago. 2024
Colchagua
Sep. 2008
Sep. 2023
Castro
May. 2012
May. 2027
Indefinite
Mendoza
Nov. 2008
Indefinite
2036
Punta del Este
Jun. 2013
Dec. 2036
Chile
Municipal
2006 Bid
2008 Bid
7
15
15 years form
starting
operation date
3
1
Dec. 2015
International
11
… it possesses in-depth knowledge of its customers…
•
Developing the Enjoy brand, which consolidates the Company’s operations, allowed it to rally its
marketing efforts and launch programs addressed directly to its customers
•
“Enjoy Club” loyalty program
Allows it to increase cross-selling
It has more than 930,000 members
Points trade-in rate exceeds 80%
Evolution of Enjoy Club customers
Millares
•
•
•
1.000
900
800
700
CAGR
+44%
600
500
400
300
200
100
2005
2006
2007
2008
12
2009
2010
2011
2012
Source: Enjoy
… with solid Corporate Governance
Ownership structure
Piere Paolo
Zaccarelli
2,9%
Fondo Siglo XXI
2,7%
Harrah´s
(Caesar´s)
4,9%
Compass
6,4%
Others
14,3%
Larraín Vial
8,0%
Martinez Seguí
Family
60,9%
Board of Directors
Chairman
Antonio Martínez Seguí
Director
Antonio Martínez Ruiz
Director
Darío Calderón González
Director
Ignacio González Martínez
Director
Octavio Bofill Genzsch
Director
Pier Paolo Zaccarelli Fasce
Director
María Cecilia Martínez Seguí
Director
Vicente Domínguez Vial (*)
Director
Pablo Turner González (*)
(*) Independent directors elected by pension funds and minority shareholders
Source: SVS (Jun 2013)
13
Enjoy implemented an investment plan to
consolidate its leading industry position…
Investment projects (US$ mm)
• Between 2006 and 2009, Enjoy implemented an
ambitious investment plan totaling more than
USD 450 millions in eight projects
Enjoy licenses
• With 99,4% of the investments complete, Enjoy
successfully wrapped up its main project stage
Coquimbo
Viña
Pucón
Antofagasta
Santiago
Santa Cruz
Chiloé
Mendoza
Total
Total (%)
• This was funded through a combination of own
funds, capital increases and bank financing
• During 2009, Enjoy conducted a financial
strengthening plan to bank on potentially
profitable investment opportunities
• Thus, in March 2010 it closed the purchase of
70% of and a controlling stake in the Rinconada
license to develop its Enjoy Santiago project
Source: Enjoy
• Today, Enjoy is capturing the benefit of the
investment returns of the plan executed
14
Percentage
completed
100%
100%
100%
100%
100%
100%
94%
100%
486,52
99,39%
Total investment
105,31
3,98
45,35
107,96
134,59
5,31
51,42
35,60
489,52
100%
ENJOY ANTOFAGASTA
Slots Machines
770
Table Games
41
Rooms
92
Food & Beverage POS
9
Relevant Market Population
15
350.000 hab
ENJOY COQUIMBO
Slots Machines
873
Table Games
32
Rooms
111
Food & Beverage POS
8
Relevant Market Population
16
340.000 hab
ENJOY MENDOZA
Slots Machines
570
Table Games
24
Rooms
140
Food & Beverage POS
Relevant Market Population
17
4
900.000 hab
ENJOY VIÑA DEL MAR
Slots Machines
1.397
Table Games
60
Rooms
60
Food & Beverage POS
9
Relevant Market Population
18
1.020.000 hab
ENJOY SANTIAGO
Slots Machines
1.398
Table Games
55
Rooms
120
Food & Beverage POS
10
Relevant Market Population
19
6.800.000 hab
ENJOY PUCÓN
Slots Machines
540
Table Games
31
Rooms + Apartments
133 + 139
Food & Beverage POS
9
Relevant Market Population
1
High seasonality on summer and holidays
20
30.0001 hab
CASINO DE COLCHAGUA
Slots Machines
230
Table Games
19
Rooms
N/A
Food & Beverage POS
1
Relevant Market Population
21
220.000 hab
ENJOY CHILOÉ
Slots Machines
230
Table Games
19
Rooms + Apartments
40 + 32
Food & Beverage POS
5
Relevant Market Population
22
150.000 hab
Enjoy acquire Conrad Punta del Este
and sign a Commercial Alliance with
Caesars Entertainment
23
Conrad Punta del Este: most important gaming
location in South America
24
Conrad Punta del Este in numbers
Offering
75
Real Estate Assets
Table games
72.000 m2
Construction
542
Slots
46.305 m2
Land
294
Rooms
5.000 m2
Convention
3.900 m2
Gaming floor
Center
Enjoy + CONRAD: Successful combination
2012
Enjoy
CONRAD
Enjoy + CONRAD
Revenues
319,34
180,69
500,03
Ebitda
75,26
33,34
108,61
Financial Debt
387,20
0,00
387,20
Assest
713,62
244,70
958,32
(US$ mm)
Total Offering:
349
6.557
Table games
Slots
Source: Company
1.201
Rooms
69
F&B POS
Enjoy S.A.
June 2013