INVESTOR PRESENTATION AUGUST 2014 | 1
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DISCLAIMER THIS DOCUMENT HAS BEEN PREPARED BY PARQUE ARAUCO FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION ABOUT THE COMPANY. The Company assumes no responsibility for, or makes The information contained herein has been prepared to any representation or warranty, express or implied, with assist interested parties in making their own evaluation of respect to, the accuracy, adequacy or completeness of the the company and does not purport to be all - inclusive or to information contained herein. The Company expressly contain all the information that a potential counterparty disclaims any liability based on such information, errors may desire. In all cases, interested parties should conduct therein or omissions therefrom. their own independent investigation and analysis of the Company. Interested parties can only rely on the result This presentation includes certain statements, estimates of their own investigation and the representations and and forecasts provided by the Company with respect to it’s warranties made in any definitive agreement that may be anticipated future performance and involves significant executed. elements or subjective judgment and analysis that may or may not prove to be accurate or correct. There can be no assurance that these statements, estimates and forecasts will be attained and actual outcomes and results may differ materially from what is estimated or forecast herein.
INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS | 4
INTRODUCTION TO PARQUE ARAUCO PARQUE ARAUCO AT A GLANCE PARQUE ARAUCO OPERATIONAL METRICS BY COUNTRY Parque Arauco is the third largest shopping center company in TOTAL GLA 1 REVENUES LTM 2 Chile, with operations in Perú and Colombia. Colombia Colombia Perú Perú 8.2% Indicator / Country CHILE PERÚ COLOMBIA 10.3% 24.1% 34.6% Total GLA (m 2 ) 1 394,536 247,118 73,500 Total Total Owned GLA 362,307 146,706 32,010 715,154 m 2 210 US$ MM Occupancy 96.8% 96.0% 91.5 % Chile Revenues LTM 2 (US$MM) 142 51 17 Chile 67.6% # of Operations 17 10 2 55.2% (1) Marina Arauco not included (1) Marina Arauco not included (2) Average Exchange Rate 2013: US$ 1 =CLP 553; LTM= Jul. 13 - Jun. 14 (2) Average Exchange Rate 2013: US$ 1 =CLP 553; LTM = Jul. 13 - Jun. 14 SHAREHOLDER STRUCTURE (JUNE 2014) OPERATIONAL METRICS BY FORMAT Mutual Funds TOTAL GLA 1 REVENUES LTM 2 Insurance Companies 2.1% 0.3% Regional Others Neighborhood Others 86.6% Investment Funds 6.2% 5.4% 3.1% 26.4% Total Total Market Cap Controlling Group 210 US$ MM 715,154 m 2 1,597 26.0% Brokers US$MM 22.1% Regional Neighborhood Others 91.5% Abumohor Family 6.9% 6.5% 2.7% Pension Funds Said Yarur Family 8.1% (1) Marina Arauco not included 6.1% (2) Average Exchange Rate 2013: US$ 1 =CLP 553; LTM= Jul 13 - Jun. 14 | 5 Others includes strip centers and outlet malls.
INTRODUCTION TO PARQUE ARAUCO SUCCESSFUL GROWTH STORY REVENUES (US$MM) 2006 First steps of expansion into Perú (45% stake in Megaplaza Norte in Lima) 3.9x 2006 Chilean expansion begins with Mall Center in Curicó 2009 First Neighborhood shopping center in Perú 194 181 (Mega Express Villa, in Chorrillos, Lima) 156 2010 Acquisition of Larcomar mall in 132 123 122 Mirafmores, Lima CAGR 83 61 55 2010 Inauguration of fjrst mall in Colombia 51 16.1% (Parque Arboleda in Pereira) 2011 First capital increase: US$168 mm 2012 Parque Arauco’s 30th anniversary, marked by further expansion in Chile, Perú & Colombia 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Capital increase for US$182 mm NET INCOME US$MM GLA M 2 EBITDA US$MM 6.5x 5.3x 4.2x 91 135 693,100 130,785 32 14 2004 2013 2004 2013 2004 2013 | 6 Source: Parque Arauco SVS. Exchange Rate: US$ 1 = CLP 553. 2004-2008 in Chilean GAAP, 2009-2013 in IFRS. Marina Arauco not included.
INTRODUCTION TO PARQUE ARAUCO REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED AND 64% OF OUR CONTRACTS HAVE A DURATION OF MORE PRIMARILY FROM FIXED CONTRACTS THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (JUL 13 - JUN 14) CONTRACT LENGTH (BASED ON % OF GLA) 1 100 17% Variable Revenues 64 6 9 21 Total < 2 years 2-3 years 3 - 4 years > 4 years 83% Fixed Revenues OUR REVENUES ARE PROTECTED AGAINST INFLATION 1. As of June 2014. | 7
INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 715,154 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 9 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m 2 ) 73,500 % Ownership 43.6 % Owned GLA 32,010 Partners: Grupo Bancolombia in all projects (45%) Familia Merheg in Parque Arboleda (45%) PERÚ GLA (m 2 ) 247,118 CHILE % Ownership 59.4% Owned GLA 146,706 GLA (m 2 ) 394,536 Partners: % Ownership 91.8 % Grupo Wiese in all Megaplaza formats (50%) Owned GLA 362,307 Los Portales S.A. in all S.C.P. projects (49%) Partners: Inversiones Centenario, S.A.A. in Parque el Empresas de Ferrocarriles del Estado in Golf project (50%) Paseo Arauco Estación (17%) Aurus Renta Inmobiliaria Fondo de Inversión in all Arauco Express projects (49%) NYK, S.A. in Arauco San Antonio (20%) Inversiones Doña Olga S.A. in Arauco San Antonio (29%) Gestora de Patrimonios S.A. in Arauco Express Ciudad Empresarial (20%) | 8
INTRODUCTION TO PARQUE ARAUCO INVESTMENT HIGHLIGHTS OUR OPERATIONS FUTURE DEVELOPMENTS | 9
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS PARQUE ARAUCO IS THE RIGHT COMPANY IN THE RIGHT INDUSTRY IN THE RIGHT COUNTRIES 6 1 Favorable Outstanding Macroeconomic Financial Performance Outlook and Attractive with a Conservative Industry Dynamics Debt Structure Leading 2 Position in the Ambitious 5 Andean Region Investment Plan Commercial Real Estate Industry Strong Commercial Differentiated Relationships Business Model 3 4 | 10
INVESTMENT HIGHLIGHTS FAVORABLE MACROECONOMIC OUTLOOK AND ATTRACTIVE INDUSTRY DYNAMICS PARQUE ARAUCO IS POSITIONED IN COUNTRIES WITH STRONG MACROECONOMIC PROSPECTS AND UNDERPENETRATED SHOPPING CENTER SECTORS STRONG REAL GDP GROWTH PROJECTIONS… …WITH A STILL RELATIVELY LOW GDP PER CAPITA 2014E (US$) 1.3 Brazil Australia 62,127 2014e (%) 1.7 2.2 Canada U.S.A. 2015e (%) 54,609 2.5 U.S.A. 1.7 Canada 53,118 3.0 Australia 3.1 Chile 17,048 2.9 México 2.7 México 11,687 GDP per 3.8 capita 2014e Chile 3.0 Brazil 10,773 3.8 Colombia 4.8 Colombia 8,150 4.7 Perú 5.1 Perú 7,019 5.6 Source: IMF as of October 2013. Based on PPP Source: Bloomberg Concensus as of July 2014 UNDERPENETRATED SHOPPING CENTER SECTORS IN CHILE, PERÚ AND COLOMBIA VS. DEVELOPED COUNTRIES U.S.A. Canada 2,200 65% Canada U.S.A. 1,360 55% GLA per 1,000 Australia inhabitants Australia 940 51% Chile Chile 197 25% México Perú 134 24% Colombia México 74 24% % of retail sales in shopping centers (2013) Perú Brazil 65 20% Brazil Colombia 64 12% Source: International Council of Shopping Centers (June 2014, November 2013 for Chile, Colombia, Source: International Council of Shopping Centers (June 2014, November | 11 and Perú) 2013 for Chile, Colombia and Perú)
INVESTMENT HIGHLIGHTS LEADING POSITION IN THE ANDEAN REGION COMMERCIAL REAL ESTATE INDUSTRY PARQUE ARAUCO HAS A STRONG, LEADING POSITION IN EVERY COUNTRY IN WHICH IT IS PRESENT - IT IS THE 3RD LARGEST PLAYER IN CHILE, THE 3RD LARGEST PLAYER IN PERU AND ONE OF THE MAIN OPERATORS IN COLOMBIA IN TERMS OF GLA Shopping Centers / Country CHILE PERÚ COLOMBIA Total GLA GLA 394,536 m 2 247,118 m 2 73,500 m 2 715,154 m 2 Market Share 12 % 12 % 2 % 8 % Ranking #3 #3 (n.a.) (n.a.) PARQUE ARAUCO IS THE ONLY COMPANY IN THE ANDEAN REGION FOCUSED ON RETAIL REAL ESTATE Parque Arauco 15% 85% Revenues from Real Estate Revenues from Home Improvement Chilean Company 1 44% 30% 14% 7% 4.9% Revenues from Department Stores Chilean Company 2 2% 12% 9% 74% 3% Revenues from Supermarkets 4% Peruvian Company 1 34% 64% Revenues from Financial Operations Revenues from Other Peruvian Company 2 66% 34% 11,687 Market Share Source: ISCS.as of November 2013; Revenue Source: 2013 Company Financial Statements | 12
INVESTMENT HIGHLIGHTS DIFFERENTIATED BUSINESS MODEL PARQUE ARAUCO HAS A UNIQUE BUSINESS MODEL, BEING THE ONLY PUBLICLY TRADED OPERATOR IN THE ANDEAN REGION WITH AN EXCLUSIVE FOCUS ON REAL ESTATE, AND ALSO HAS A WIDE SCOPE IN TERMS OF GEOGRAPHY, FORMATS AND SOCIOECONOMIC LEVELS Focus on the High Performing Prime Andean Region Location 4 IMPORTANT INTANGIBLE ASSETS Experienced Client Culture Team Multiformat and Coverage of Different Socio-Economic Continuous Improvement Segments in Shopping Experience Strong Commitment of Relationship with Controlling Retailers Shareholders Lean Construction Taylor made Layouts and Designs | 13
INVESTMENT HIGHLIGHTS STRONG COMMERCIAL RELATIONSHIPS OVER 30 YEARS OF INDUSTRY EXPERIENCE HAS ENABLED PARQUE ARAUCO TO CREATE SOLID AND LONGSTANDING COMMERCIAL RELATIONSHIPS WITH ITS TENANTS CHILE PERÚ COLOMBIA
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