45
Capital Increase Santiago, October 2010 Antofagasta Coquimbo Viña del Mar Colchagua Puerto Varas Mendoza Pucón Santiago Arranger and Placement Agent
Capital Increase
Santiago, October 2010
Antofagasta Coquimbo Viña del Mar Colchagua Puerto Varas Mendoza Pucón Santiago
Arranger and Placement Agent
2
Contents
• Investment considerations
• Enjoy Santiago
• Financials
• Characteristics of capital increase
3
Executive summary
Enjoy:
Leader in the Chilean gaming industry, with a successful track record dating back over 35 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, positive outlook / A- positive trend by Fitch / ICR)
Steady cash flow growth perspectives based on:
Recent investments
New licenses
Attractive projects
Top-flight management and corporate government
Only LatAm entertainment company listed on the stock exchanges
Antofagasta Coquimbo Viña del Mar Colchagua Puerto Varas Mendoza Pucón Santiago
4
Contents
• Investment considerations
• Enjoy Santiago
• Financials
• Characteristics of capital increase
5
• New regulatory framework (law 19995 enacted in 2005) lays the groundwork for the stable, transparent and
profitable development of this industry
• Maximum number of licenses
• Licenses awarded via
investment project bids
• License terms
• Exclusive rights to
relevant market
• Tax treatment
• Strictly regulated
Chilean gaming industry backed by a solid regulatory
framework …
Expanded from 7 to 25 (7 municipal and 18 under new law)
All have been awarded
Municipal until December 31, 2015
New licenses, 15 years from the start of operations
70 Km. radius
20% on net gaming income
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
0 5 10 15 20 25 30 35 40 45 50
• 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
Source: GBCC
… harboring vast potential for growth
USA
Australia Spain
Brazil
Argentina South
Africa
Chile
Mexico
Source: Global Entertainment and Media Outlook: 2008-2012, IMF, INE
Entertainment spending and income (ThUS$ per capita)
Gross gaming revenues ($ k millions1)
Source: Enjoy estimate 1In currency of each year
Gaming spending/GDP (2008)
0
50
100
150
200
250
1994 1997 2000 2003 2006 2009
6
Spending
Income
1,15%
0,76% 0,71%
0,42% 0,20%
Spain UK USA Argentine Chile
Enjoy is the gaming industry leader in Chile…
Market shares in Chile
Enjoy 49%
Others 51%
Slot Machines –
Country Total
11,064
Enjoy 51%
Others 49%
Gaming Tables –
Country Total
667
7
• Enjoy is Chile’s leading casino operator, with over 35 years’ experience
• The Company presently operates a chain of 8 casinos (1 in Argentina), with 5,444 slot machines, 258 gaming tables,
33 restaurants and over 1,000 bingo positions
• Alongside these casinos, Enjoy has 6 hotels for a total 765 rooms
• The Company implements a proven, successful one-stop entertainment model, becoming an industry benchmark in
Latin America
Source: SCJ and Enjoy estimate
Enjoy 42%
Others 58%
Gross Revenues
CLP$ 250 billion
# 1 # 1 # 1
8
… and is the leading entertainment chain in the
country
8
Antofagasta Coquimbo Viña del Mar Colchagua Puerto Varas Mendoza Pucón Santiago Chiloé
1
Enjoy has a proven, successful business model…
Customer flow One-stop supply Quality service Cross selling
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, children’s games,
night clubs and spa
• More patrons, longer permanence
• Diversified income sources and cross selling
• The above is leveraged by the synergies,
customer loyalty and economies of scale of the
chain
9
10
Revenues by line of business (Jun-2010) Revenues by business unit1 (Jun-2010)
Gaming 71%
Food & Beverages
15%
Hotel 9%
Shows 1%
Others 4% Antofagasta
22%
Coquimbo 25%
Viña 22%
Rinconada 4%
Pucón 13%
Puerto Varas 6%
Mendoza 8%
… 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
1 Accounting guidelines require considering 50% of Puerto Varas and Mendoza
Source: Enjoy
0
10
20
30
40
50
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CL
P$
Th
2010 2009
0
300
600
900
1.200
1.500
1.800
2.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CL
P$
mill
one
s
2010 2009 2008
11
… originating from profitable businesses…
1 Average revenues per room per day
In $ of each month
Source: Enjoy
0
300
600
900
1.200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CL
P$
mill
ons
2010 2009 2008
Evolution of FF&BB revenues
Hotel revenues Revpar/day1 Hotel occupancy
• All of Enjoy’s businesses are profitable and generate
synergies, significantly leveraging traffic flows
• Vast array of food and beverage varieties and points of sale
(FF&BB) 33 restaurants
• Hotel complements the gaming and FF&BB businesses and
raises demand for event centers
• Increase in 2008-2009 supply from 60 to 765 rooms
• Average annual occupancy > 60% and over160,000
guests in 2009
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2009
12
Evolution of IPSA ($)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
30.000
60.000
90.000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Ingresos de Juego Salones de Juego (%) Tragamonedas (%)
… growing and stable in the face of business cycles
1 Considers revenues plus VAT from slot machines, tables and bingo
Source: Enjoy
Gross gaming revenues evolution and mix1 in casinos operated by Enjoy ($ millions)
0
1.000
2.000
3.000
4.000
Argentine Crisis Asian Crisis
Fall of Lehman Brothers
Gaming Revenue Gaming Rooms (%) Slot Machines (%)
Enjoy’s licenses are also highly diversified, located in the main
urban and/or tourist hubs …
13
1Only property not owned by Enjoy
Source: Enjoy
1
License
type
Number of
licenses
Effective
term
Enjoy
license
Target
population
Start of
operations
End of
concession
Chile
Municipal 7
31/12/2015 Coquimbo 201,000 1994 Dec. 2015
31/12/2015 Viña1 1,500,000 1975 Dec. 2015
31/12/2015 Pucón 350,000 1995 Dec. 2015
31/12/2015 Puerto Varas 250,000 2000 Dec. 2015
2006 bid 15 15 years
from start
of
operations
Antofagasta 285,000 Nov. 2008 Dec. 2023
Santiago 5,500,000 Aug. 2009 Aug. 2024
Colchagua 50,000 Sept. 2008 Sept. 2023
2008 bid 3 Castro 50,000 n.a. 15 years
International
1 Indefinite Mendoza 800,000 Nov. 2008 Indefinite
More than 50% of the Chilean population lives in the vicinity of an Enjoy casino
… it possesses in-depth knowledge of its customers…
Evolution of Enjoy Club customers Evolution in spending1 Evolution of trade-ins
0
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010
Th
1 Based on a sample of almost 13,000 customers who
have stayed at least 2 years in Enjoy Club.
• 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
• Knowledge of where 45% of Enjoy’s revenues originate
• Allows it to increase cross-selling
• Over 440k customers
• Points trade-in rate exceeds 80%
Source: Enjoy 14
CLP$ T
h
… with solid Corporate Government
Board of Directors
Chairman Antonio Martínez Seguí
Director Antonio Martínez Ruiz
Director Darío Calderón González
Director Ignacio González Martínez
Director Leonidas Vial Echeverría
Director Vicente Domínguez Vial
Director Pablo Turner González
Ownership structure
Martinez Seguí
family 66.5%
LarrainVial 10,9%
Habitat 6,1%
Pier-Paolo Zacarelli
3.5%
Celfin 2,0%
Others 11.0%
15
Source: SVS (September 2010)
Enjoy implemented an investment plan to
consolidate its leading industry position…
16
Investment projects (CLP$ millions)
Enjoy licenses Percentage completed
Total investment
Coquimbo 100% 49,761
Viña 100% 1,881
Pucón 100% 21,432
Puerto Varas 100% 19,950
Antofagasta 100% 51,015
Rinconada de los Andes 70% 63,600
Santa Cruz 100% 2,508
Castro 20% 19,551
Mendoza 100% 16,822
Total 211,800 246,520
Total (%) 86% 100%
Source: Enjoy
• Between 2006 and 2009, Enjoy implemented an
ambitious investment plan totaling more than
CLP 150 billion in seven projects
• With 86% of the investments complete, Enjoy
successfully wrapped up its main project stage
• 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
… achieving significant diversification in its markets
and licenses
EBITDA by business unit
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010P 2011P 2012P 2013P 2014P
Santiago
Mendoza
Puerto Varas
Pucón
Viña
Coquimbo
Antofagasta
17
Source: Enjoy
1 Considers 50% of Puerto Varas and Mendoza
0
8.000
16.000
24.000
1997 2000 2003 2006 2009
CLP
$ m
illo
ns
Revenues EBITDA
• After achieving initial stability, Enjoy Puerto Varas’
revenues grew at a compounded annual rate of 22.1%
during 2000-2009
• In late 2009, Hotel de Los Volcanes was inaugurated,
allowing it to increase its revenue scale (startup
temporarily affects EBITDA for the period)
• Also, during 2009, it contributed more than $5 billion in
EBITDA, i.e. 25% of the total
18
Enjoy’s steadily growing consolidated operations
Puerto Varas case
0
4.000
8.000
12.000
1994 1996 1998 2000 2002 2004 2006 2008
CLP
$ m
illo
ns Revenues EBITDA
• Revenues grew at a compounded annual rate of 22.2% in
1997-2009
• In 2009, it contributed over $6.7 billion in EBITDA
• One-Stop Model, with the new infrastructure and offering
completed in 2008, gave the business renewed momentum
• In 2010, it continued with steady growth in all areas
Coquimbo case
0
4.000
8.000
12.000
16.000
1996 1998 2000 2002 2004 2006 2008
CLP
$ m
illo
ns
Revenues EBITDA
0
15.000
30.000
45.000
60.000
1994 1997 2000 2003 2006 2009
CLP
$ m
illo
ns
Revenues EBITDA
• After the fire that gutted Hotel del Lago in 2007, supply
was replenished with a new casino and the purchase of
Gran Hotel Pucón
• It maintains its positioning despite more intense
competition after casinos were opened in Temuco and
Concepción
• Hotel capacity buffers seasonality factors
19
Pucón case
• One of Enjoy’s most mature and consolidated operations, it
maintains a significant growth rate
• After 2009 was marred by the crisis and the influx of new
competitors, in 2010 it resumed growth focused on the
important local market and weekend and summer visitors
• Significant EBITDA contribution to Enjoy, albeit diluted by
the group’s new operations and growth
Viña case1
1 Considers Total Revenues and EBITDA for Viña
Enjoy’s steadily growing consolidated operations
20
Antofagasta case
-500
0
500
1.000
1.500
2.000
2.500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CLP
$ m
illo
ns
• Enjoy began its operations in Antofagasta in November 2008
• Antofagasta offers vast growth potential thanks to a booming
mining sector, higher per capita income, lower unemployment
and few entertainment options
• After its startup period, from September 2009 onward Enjoy
Antofagasta began moving along the path to steady growth in
terms of both revenues and EBITDA
• It has become one of Enjoy’s main operations in terms of EBITDA
contribution and growth potential
And new markets offering vast potential…
• Enjoy Mendoza, inaugurated in
late 2008, allowed the company
to enter a mature and highly
competitive market with
excellent results
• In May 2010, authorization was
given to open the San Juan Hall,
increasing the supply of TGM by
200 units and thereby attaining
almost 500 TGM
• This allowed the company to
obtain significant increases in
revenue and EBITDA, with a
market share exceeding 30% in
less than 18 months in business
Mendoza case
Revenues
2010
2009
EBITDA
2010
2009
0
200
400
600
800
1.000
1.200
1.400
1.600
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CLP
$ m
illo
ns
Revenues
2010
2009
EBITDA
2010
2009
(*) EBITDA for
December includes
one-timer effects
from retroactive
contributions
(revaluation of
property) and
utility adjustments
Growth strategy along two complementary lines
Coquimbo Viña del Mar Colchagua Pucón
21
- Gaming room with tables
and slot machines
Deepen the business model
Casinos
Delightful
experience
Hotel – Casino
Casino with
hotel
- Focus on casino
- Support from hotel & restaurants
- One-stop entertainment offering
- Hotel, spa, restaurants and casino
- Includes skiing, tourism, etc.
Turnaround from unprofitable operations
- Acquiring unprofitable operations
- Changing the value proposal
- Replicating model in other territories
22
Contents
• Investment considerations
• Enjoy Santiago
• Financials
• Characteristics of capital increase
Enjoy Santiago
Investment Considerations
• Casino nearest to Santiago, the country’s largest market
• Longer duration of Enjoy’s concessions
• Consolidates the Enjoy chain and contributes additional synergies in marketing, customer loyalty,
etc.
• In-depth knowledge of the market in central Chile – a well-positioned brand
• The casino running allows for immediate cash flows; very good prospects for future expansion
• High expected return on investment and
generation of free cash flow
• Acquisition of 70% of property and
takeover
24
The casino nearest to Santiago…
25
Enjoy operations
Competing operations
Enjoy Santiago
Multiple access roads Shorter travel time than the
most direct competitor
In vicinity of largest
target market
… consolidating the Chain and contributing additional
synergies…
26
More than 116,000 members in
Enjoy Club in Santiago
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10
Millo
nes
… generating immediate cash flows…
27
WIN average after the acquisition is 6 times the trailing average as of that date.
Effect of the entry of Enjoy WIN1 in Enjoy Santiago ($ millions, monthly)
6 times
1Gross Gaming Revenues
… generating immediate cash flows…
28
Average weekly spending per visitor ($)
Weekly patronage
Average weekly WPD TGM (win per day)
0
20.000
40.000
60.000
80.000
5-11 jul 19-25 jul 2-8 ago 16-22 ago 30 ago -5 sep 13-19 sep 27 sep-3 oct
0
4.000
8.000
12.000
5-11 jul 19-25 jul 2-8 ago 16-22 ago 30 ago -5 sep 13-19 sep 27 sep-3 oct
0
10.000
20.000
30.000
40.000
50.000
5-11 jul 19-25 jul 2-8 ago 16-22 ago 30 ago -5 sep 13-19 sep 27 sep-3 oct
3 times
3 times
• Based on customer knowledge
• Plan began progressive deployment starting the 2nd week of September
… with a sensible, focused and effective business strategy for
its target public…
29
Sectors with high purchasing power Selective media presence Ambassadors and promotions
… with vast growth potential…
30
Evolution of revenues in comparable casino from first month of operation3 ($ million)
Enjoy Santiago Comparable
CAPEX US$ 130 million US$ 247 million
Supply 904 TGM, 50 tables 1.500 TGM, 80 tables
Revenues 1st month
of operation2 $1.715 billion $1.767 billion
• Vast market potential in Santiago and prospects of
capturing market share from competitors
• Study prepared by The Innovation Group1 in relation to
the new facility adjoining the Metropolitan Region:
• WIN estimated in excess of US$130 million
• 2,100 TGM for unmet demand
1 Considers present supply adjoining the Metropolitan Region (May 2006) 2 Enjoy Santiago: September 2010 , comparable: October 2008
Source: SCJ, Annual Report 2009 Sun International, Enjoy
0
1.000
2.000
3.000
4.000
5.000
6.000
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 13 Month 15 Month 17 Month 19 Month 21 Month 23
Enjoy Santiago Comparable
3 First month of stable operations at Enjoy Santiago: September 2010 , comparable: October 2008
Development Plan Stage I: 2Q 2010
200 slot machines
13 gaming tables, bingo
2 Bars, 1 Restaurant, 1 Cafeteria
1-shift operation: 8pm to 4am
Remodeling work
Personnel training
Improved service and operations
Integration of Enjoy systems and processes
Development of road connections, expanded parking spaces, additional purchase of
gaming equipment, and construction of Hotel, Convention Center, Spa, restaurants
and additional Bars, VIP hall.
31
Development Plan Stage II: Q3 and Q4 2010
Expansion to almost 1,000 slot machines
50 gaming tables, VIP Hall, Bingo
Enjoy Club
Refurbished Bars, Restaurant, Cafeteria and
Gaming Rooms
Road connection with overpass
1.400 parking spaces
2-shift operation
Completion of construction works for Hotel,
Convention Center, Spa, additional
Restaurants and Bars
32
Development Plan Stage III: Q1 2011
Incorporation by:
50 gaming tables, VIP Hall, Bingo
Bars, Restaurants
5-star 120-room hotel
Convention Center
Spa, Outings
1,400 parking spaces
Operations 24/7
Entertainment leader in the Metropolitan Region
33
Master Plan for potential development of Enjoy Santiago
allows for expanded supply
34
35
Contents
• Investment considerations
• Enjoy Santiago
• Financials
• Characteristics of capital increase
Financing for Enjoy Santiago
• Rinconada casino received fixed asset investments at March 31, 2010, totaling USD 57.3
million and app. USD 90 million at September 30
• Additional investment in remodeling and expanding the Gaming Casino plus the
construction of the Hotel, Convention Center, Parking Spaces, Spa and facilities
estimated at USD 66.6 million (UF 1,650,000)
• Total investment in fixed assets is USD 130 million.
Financing structure contemplates:
• Capital increase –through Enjoy’s purchase of an ownership interest- in the sum of USD
29,960,000, totaling USD 37,500,000
• Equipment financing for USD 15 million
• Real estate financing for USD 71 million
36
37
Evolution of main P&L accounts
Evolution of quarterly P&L accounts
-10.000
-4.000
2.000
8.000
14.000
20.000
26.000
1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010*
CL
P$
mill
ons
Revenues EBITDA Net Income
Source: Enjoy
*2Q 2010 based on IFRS
Effect of “Profit from
higher value of
investment”
Starting in 2010, the results of the investment plan implemented become noticeable
Financial strengthening plan
1,78 1,75
3,08
6,42
3,88
3,43
1,36
0,74
2,07
4,47
0,99 0,78
0,42
1,00 1,01
1,94
2,88 2,66
0
1
2
3
4
5
6
7
2005 2006 2007 2008 2009 Jun 2010
Total Short Term Long Term
Net Indebtedness1
Source: Enjoy 1 (Liabilities-Cash on Hand) / (Owner’s Equity+ Minority
Interest)
38
Financial strengthening plan
• During 2009, shareholders capitalized loans previously made to Enjoy and totaling CLP 11 billion.
• In July 2009, the IPO was launched, placing 30% of the shares in the capital market, raising CLP 23.1 billion, which
proceeds were used to pay off debts
• In October 2009, a syndicated loan was finally structured for CLP $41.575 billion with 8 banks, also used to pay off
short-term debts
• In June 2010, corporate bonds were issued in the sum of UF 3 million, allowing the company to lengthen debt duration,
lower indebtedness rates and generate more space for new debt
• In early September 2010, and taking advantage of excellent market conditions, an additional UF 2 million were placed
in bonds to finance the Enjoy Santiago project
39
Financial strengthening plan
Source: Enjoy
Enjoy amortization profile
0
10.000
20.000
30.000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
CL
P$
mil
lon
es
Initial 1st Bond 2nd Bond
2010 2011 2012 2013 onward
Leverage (Net Financial Debt to Net Worth) 3.0x 3.0x 2.5x 2.0x
Net Financial Debt to EBITDA n.a. 5.0x 4.5x 4.0x
Keep unsecured assets [x] times the
unsecured financial debt 1.0x 1.15x 1.30x 1.50x
Financial Covenants under Enjoy Bonds
40
41
Contents
• Investment considerations
• Enjoy Santiago
• Financials
• Characteristics of capital increase
Characteristics of capital increase
42
Capital increase
Current number of subscribed-for and paid-up
shares 1,540,015,942
Number of shares to be subscribed for and paid up 242,857,142
Number of shares post capital increase 1,782,873,084
% to be placed on post-increase shares 13.62%
Price of preemptive option $70
Market symbol ENJOY
Purpose: Financing of acquisition of and investment in Enjoy Santiago
Tentative placement timetable
43
Activity timetable
September 23 Board sets the price
October 14 to October 26 Road show
October 20 Start of preemptive option for current shareholders
November 19 End of preemptive option
September October November
L M W J V S D L M W J V S D L M W J V S D
1 2 3 4 5 1 2 3 1 2 3 4 5 6 7
6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 14
13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21
20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 28
27 28 29 30 25 26 27 28 29 30 31 29 30
Capital Increase
Santiago, October 2010
Antofagasta Coquimbo Viña del Mar Colchagua Puerto Varas Mendoza Pucón Santiago
Arranger and Placement Agent
45
Disclaimer
The contents of this document are based on financial information provided to LarrainVial by the Company and LarrainVial has not verified
its consistency with the Company’s actual results, nor whether it accurately reflects the present market values of the assets or liabilities.
This document has been prepared by LarrainVial together with Enjoy to provide general information on the latter. Sources have been
public and internal information of the Company, LarrainVial does not assume any liability under the law regarding the accuracy of the
projections indicated herein and whether they will be actualized in the future. Said estimates and projections are based on a set of
assumptions subject to significant uncertainty and economic and market contingencies that are difficult to predict, and therefore the is no
certainty whatsoever as to the extent to which these estimates, projections and/or underlying assumptions could be fulfilled.
