[Fourth Quarter 2018] CONTACTS Tori Creighton (Head of Investor - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION

[Fourth Quarter 2018]

CONTACTS Tori Creighton (Head of Investor Relations) Francisco Moyano (Corporate Finance Manager) Claudio Chamorro (CFO) Tel: (562) 22990510 | Email: ir@parauco.com

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

This document has been prepared by Parque Arauco for the purpose of providing general information about the Company. The Company assumes no responsibility for,

• r makes any representation or warranty,

express or implied, with respect to, the accuracy, adequacy or completeness of the information contained herein. The Company expressly disclaims any liability based on such information, errors therein or omissions therefrom. This presentation includes certain statements, estimates and forecasts provided by the Company with respect to it’s anticipated future performance and involves signifjcant 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 difger materially from what is estimated or forecast herein. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not purport to be all - inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct their own independent investigation and analysis of the

• Company. Interested parties can only rely on

the result of their own investigation and the representations and warranties made in any defjnitive agreement that may be executed.

«

IMPORTANT DISCLAIMER

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

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OUR OPERATIONS INTRODUCTION INVESTMENT HIGHLIGHTS

34

FUTURE DEVELOPMENT

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

• 1. INTRODUCTION

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 Risk Rating Agency Rating Fitch AA- Feller AA- ICR AA- Key Figures Total GLA (m2) 1,053,000 Revenues LTM (US$ MM) 296 EBITDA LTM (US$ MM) 215 EBITDA Margin LTM (%) 72.6% Net Financial Debt (US$ MM) 1,029 Total Assets (US$ MM) 3,423

PARQUE ARAUCO AT A GLANCE

Regional shopping centers

17

Outlets

7

Strip centers

18

Neighborhood shopping centers

10

Offjces, medical centers, hotels

9

SHAREHOLDER STRUCTURE (DECEMBER 2018) FINANCIAL INDICATORS (DECEMBER 2018) POSITIVE LOCAL RISK RATING 1% 6% 26% 5% 3% 17% 21% Said Yarur Family Others Controlling Group Abumohor Family Local Pension Funds Local Mutual Funds Local Brokers 21% Foreign Investment Funds Market Cap US$MM 2,001

Parque Arauco is a real estate company dedicated to the development and

• peration of mixed-used properties in

the Andean region.

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

GLA M2 NOI US$ MM

Source: Parque Arauco. Exchange Rate: US$= 640.62. Does not include Marina Arauco nor Mall Center Curicó.

IN THE LAST SIX YEARS PARQUE ARAUCO HAS DOUBLED GLA, NOI AND AFFO

Parque Arauco Kennedy opens as fjrst shopping center in Chile Capital increase for US$182 MM Purchase of minority shareholders in Colombia and Peru Parque Arauco S.A. IPO Capital increase for US$100 MM Parque Arauco expands into Peru with the purchase of a 45% stake in MegaPlaza Norte in Lima Parque Arauco opens fjrst mall in Colombia, Parque Arboleda in Pereira Capital increase for US$145 MM

1982 2014 1995 2015 2016 2006 2010 2011

+1.9X

559,700

2012

693,100

2013

728,500

2014

947,000

2016

818,500

2015

1,012,000

2017

1,053,000

2018 +2.0X 118 2012 135 2013 154 2014 203 2016 179 2015 239 2017 238 2018 CONTROLLED ADJUSTED FFO US$ MM +1.9X 78 2012 99 2013 91 2014 115 2016 103 2015 140 2017 147 2018 Parque Arauco signs agreement for a business combination with Wiese Group in Peru

2018

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

CORPORATE PURPOSE OUR VALUES

Our purpose is to create spaces that contribute to improving people’s lives.

• Happiness
• Excellence
• Growth
• Profjtability
• Sustainability

Our mission is to be leaders in developing and operating real estate assets, through profjtable and sustainable growth that generates value for our stakeholders.

MISSION PILLARS OF OUR CULTURE STRATEGIC OBJECTIVES

and the environment

Respect

for people

O p e n n e s s

t

• c

h a n g e a n d i n n

• v

a t i

• n

Right option,

Choose the

not the

easiest

• ne

things

Make

happen

that inspires an exceptional

T eam

Create

a work environment

« « « «

PURPOSE, MISSION AND CORPORATE VALUES

7

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

2.

OUR OPERATIONS

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

PARQUE ARAUCO KENNEDY CHILE LARCOMAR PERU ARAUCO MAIPÚ CHILE MEGAPLAZA NORTE PERU ARAUCO ESTACIÓN CHILE PARQUE LA COLINA COLOMBIA

PARQUE ARAUCO HAS ICONIC AND DOMINANT SHOPPING CENTERS IN CHILE, PERU AND COLOMBIA

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

• 1. Arauco Express has 15 strip centers in Chile: 11 strip centers in Santiago, 1 in Viña del Mar, 1 in Calama, 1

in Coquimbo, and 1 in Antofagasta.

• 2. Arauco Premium Outlet has four outlets located in Santiago, Concepción, Coquimbo and Curauma.

Regional shopping centers Neighborhood shopping center Outlets Strip centers Chile GLA (m2) % Ownership Owned GLA (m2) Occupancy Year of incorporation Parque Arauco Kennedy 112.000 100% 112.000 98,5% 1982 Arauco Maipú 72.500 100% 72.500 98,3% 1993 Arauco Chillán 35.000 100% 35.000 92,8% 2007 Arauco Estación 67.000 83% 55.610 96,6% 2008 Arauco San Antonio 28.500 70% 19.922 95,5% 2009 Arauco Express1 37.000 53% 19.736 90,3% 2012 Arauco Premium Outlets2 46.000 100% 46.000 98,6% 2012 Arauco Quilicura 32.000 100% 32.000 99,7% 2013 Arauco Coronel 30.000 100% 30.000 97,4% 2017 Parque Angamos 10.500 55% 5.775 65,0% 2018 Arauco El Bosque 30.000 100% 30.000 100,0% 2018 Total Chile 500,500 91% 458,542 96.4%

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CHILEAN PORTFOLIO

The average age of the portfolio is 16 years. IN CHILE PARQUE ARAUCO HAS:

1

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

• 1. Only partner in Peru is Grupo Wiese, which includes MegaPlaza formats (50%).
• 2. InOutlet and Viamix includes two premium outlets in Lima and three strip centers in Lima.

Peru GLA (m2) % Ownership Owned GLA (m2) Occupancy Year of incorporation MegaPlaza Norte 112.000 50% 56.000 98,2% 2006 MegaPlaza Express Villa Chorrillos 8.000 50% 4.000 98,1% 2009 Larcomar 27.000 100% 27.000 80,7% 2010 Parque Lambramani 30.000 100% 30.000 93,6% 2010 MegaPlaza Chimbote 28.000 50% 14.000 94,7% 2012 MegaPlaza Express Villa El Salvador 9.000 50% 4.500 93,8% 2012 MegaPlaza Express Chincha 10.500 50% 5.250 94,1% 2013 InOutlet and Viamix2 25.000 100% 25.000 86,8% 2013 MegaPlaza Cañete 16.500 50% 8.250 99,4% 2013 MegaPlaza Express Barranca 10.000 50% 5.000 82,9% 2013 MegaPlaza Pisco 14.500 50% 7.250 95,4% 2015 El Quinde Cajamarca 32.500 100% 32.500 96,1% 2015 El Quinde Ica 36.500 100% 36.500 98,3% 2015 MegaPlaza Jaén 14.500 50% 7.250 96,5% 2016 MegaPlaza Huaral 14.000 50% 7.000 80,5% 2017 MegaPlaza Villa El Salvador II 9.000 50% 4.500 84,3% 2017 Total Peru 397.000 70% 274.000 93.9%

PERUVIAN PORTFOLIO

The average age of the portfolio is 7 years. IN PERU PARQUE ARAUCO HAS: Regional shopping centers Neighborhood shopping center Oulets Strip centers

6 3 9 2

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

Colombia GLA (m2) % Ownership Owned GLA (m2) Occupancy Year of incorporation Parque Arboleda 41,000 55% 22,550 97,9% 2010 Parque Caracoli 38,500 100% 38,500 87,1% 2013 Parque La Colina 62,500 100% 62,500 97,2% 2016 Premium Outlet Arauco (Sopó) 13,500 100% 13,500 51,4% 2017 Total Colombia 155,500 88% 137,050 90,9%

COLOMBIAN PORTFOLIO

Regional shopping centers Oulet in Colombia

3 1

The average age of the portfolio is 4 years. IN COLOMBIA PARQUE ARAUCO HAS:

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

3.

INVESTMENT HIGHLIGHTS

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

INVESTMENT HIGHLIGHTS

1. 2. 4. 3. 5.

Stability Financial Strength Diversifjcation Growth Sustainability and Corporate Governance

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 FIXED VS VARIABLE RENTAL REVENUES CONTRACT LENGTH (BASED ON % OF REVENUES) TENANT REVENUE (BASED ON % OF REVENUES LTM) 36% 15% 10% 39% 100%

39% of our contracts have a duration of more than 4 years and the average length is 5.7 years. Our top 10 tenants represent only 12% of Parque Arauco’s total revenue.

14 % Other revenues 12 % Variable revenues 88 % Fixed revenues 86 % Rental revenues

5.7

years

12 %

<2 years 2-3 years 3-4 years >4 years TOTAL 12 % Top 10 88 % Other tenants

Our rental revenues are derived primarily from fjxed contracts and are protected against infmation.

REVENUE TYPE AND CONTRACT DURATION

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STABILITY

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

• 2.9
• 1.1

0.4 4.6 4.2 3.0 1.6 4.1 6.1 2.8 3.8 6.6 3.4 3.6 2.62.7 3.7 7.0 1.7 2.6

• 0.5

3.4

• 1.5

2.1

• 2.2

1.2

• 3.1

0.1 12.7 8.3 5.5 0.2

• 0.9
• 0.2
• 0.9

0.3 10.7 7.6

• 2.4

5.3 7.4 1Q17 1Q18 2Q17 3Q17 4Q16 4Q17 SSS SSR SSS SSR 10.6 10.0 10.5 10.0 10.7 9.8 10.9 SSS SSR 13.9 11.1 15.0 16.0 13.2 9.2 SAME STORE SALES (SSS) Y SAME STORE RENT (SSR) (%) OCCUPANCY COST (%)

CONSISTENT SAME STORE GROWTH AND HEALTHY OCCUPANCY COST

Note: Peru’s Same Store Sales and Same Store Rent in 4Q17 do not include Larcomar due to contingencies. 2Q18 1Q17 1Q18 2Q17 3Q17 4Q16 4Q17 2Q18 7.5 7.4 7.7 7.7 7.4 6.7 7.2 4.3 2.5

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STABILITY

3Q18

• 4.0

2.1 1.3 2.8 6.6 8.1 11.4 3Q18 7.4 13.2 10.4 4Q18 6.8 10.0

• 2.7

4.4 4Q18 3.5 4.2 7.1 8.6

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

+10.1%

• 1.2%

+0.0% +18.9% +15.3% +15.0% +7.7% +1.5% +1.5%

• 1.0%

+4.3% +5.8%

(1) In MUSD using the following exchange rates: US$1= CLP 640.62 US$1= PEN 3.28, US$1= COP 2,952.26. (2) Including overhead expenses (Corporate headquarters, regional Services Center, Chile Division, Peru Division and Colombia Division) 1,712 168 175 122 129

2017 454,500 500,500 2018 2017 2018 2017 2018 2017 2018

894 963 80 79 55 56

402,000 397,000 2017 2018 2017 2018 2017 2018 2017 2018 281 334 36 42 25 29 155,500 155,500 2017 2018 2017 2018 2017 2018 2017 2018

CHILE PERU COLOMBIA

GLA (M2) TENANT SALES 1 (US$ MM) COUNTRY LEVEL REVENUES1 (US$ MM) COUNTRY LEVEL EBITDA1,2 (US$ MM)

RESULTS HAVE BEEN POSITIVE IN ALL THREE COUNTRIES

1,731

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STABILITY

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

Parque Arauco is concentrated inthe capital cities of Santiago, Lima and Bogota.

PERU

17 %

LIMA Megaplaza Norte Larcomar Inoutlet Faucett MegaPlaza Villa Chorrillos MegaPlaza Villa El Salvador InOutlet Premium Lurín MegaPlaza Villa El Salvador II Viamix Colonial

• f Parque Arauco NOI

17 %

• f Parque Arauco GLA

CHILE

43 %

• f Parque Arauco NOI

32 %

• f Parque Arauco GLA

SANTIAGO Parque Arauco Kennedy Arauco Maipú Arauco Estación Arauco Quilicura Arauco Premium Outlet Buenaventura Arauco El Bosque

FOCUS ON CAPITAL CITIES

COLOMBIA

8 %

• f Parque Arauco NOI

7 %

• f Parque Arauco GLA

BOGOTA Parque La Colina Premium Outlet Arauco Sopó

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STABILITY

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

85% 7% 3% 5% COUNTRY LEVEL DIVERSIFICATION (% REVENUES) FORMAT LEVEL DIVERSIFICATION (% REVENUES) SOCIO-ECONOMIC DIVERSIFICATION (% REVENUES) 14% 27% 59% 9% 48% 43% Regional Chile Medium-High Medium-Low Neighborhood Peru Medium Outlet Colombia Strip center

PARQUE ARAUCO DIVERSIFIES ITS MARKET RISKS AT A COUNTRY, FORMAT, AND SOCIO-ECONOMIC LEVEL

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DIVERSIFICATION

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 Source: GDP Growth, Population and GDP Per Capita: International Monetary Fund, April 2018. Retail Sales: Euromonitor, December 2017.

2016

1.6%

2017

1.5%

2018f

3.4%

2016

4.0%

2017

2.5%

2018f

3.7%

2016

1.9%

2017

1.8%

2018f

2.7%

GDP GROWTH 2016

18.2

2017

18.4

2018f

18.6

2016

31.5

2017

31.8

2018f

32.2

2016

48.7

2017

49.3

2018f

49.8

POPULATION (MILLIONS) 2016 2017

22,409

2018f

22,731

2016

11,974

2017

12,160

2018f

12,483

2016

13,099

2017

13,174

2018f

13,404

GDP PER CAPITA, PPP 2016

1.8%

2017

0.9%

2018f

3.5%

2016

3.9%

2017

4.6%

2018f

4.7%

2016

0.7%

2017

2.3%

2018f

3.4%

RETAIL SALES GROWTH

PARQUE ARAUCO OPERATES IN THREE ATTRACTIVE ECONOMIES

22,337 Chile Peru Colombia

«

DIVERSIFICATION

Chile Peru Colombia Chile Peru Colombia Chile Peru Colombia

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 PHASE 1 DETAILS PHASE II DETAILS

New fmagship Falabella

25 ,000 m2

5-Star Hotel Hilton by Hilton UF 5

,355 ,000

Investment ABL adicionales

2017

Construction start Opening date

2021

Opening date

2024

Rooms

401 3,000 m2

Convention Center

2021

Construction start

15 ,000 m2

Tower

RATIONALE

DIVERSIFICATION VIA MIXED-USE PROPERTIES

• Generate synergy between formats
• Densify strategic locations in urban

areas

• Respond to each area’s difgerent

client needs

• Follow new trends toward creating

spaces that allow people to connect

PARQUE ARAUCO KENNEDY EXPANSION

UF 2,200,000 Investment

11,000 m2

Additional GLA Additional GLA

10,000 m2

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DIVERSIFICATION

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 Source: Prepared using information published by the International Council of Shopping Centers (ICSC) (Mexico, Argentina, and Chile), Brazilian Shopping Center Council (ABRASCE), Peruvian Shopping Center Council (ACCEP), Colombian Shopping Center Association (ACE) and Parque Arauco analysis.

Million m2 39% of total Million m2 24% of total

GLA: GLA:

18.4 11.1

MÉXICO ANDEAN REGION Million m2 32% of total

GLA:

15.4

BRASIL ARGENTINA Million m2 5% of total

GLA:

2.1

GLA: 47.4 million m2

Indicator Chile Peru Colombia Total GLA (th) 3,500 2,700 5,300 GLA Parque Arauco (th) 456 406 156 Market Share 13% 15% 3% Rank #3 #3 #4

LATIN AMERICA

PARQUE ARAUCO HAS 1 MILLION M2 AND A 2% MARKET PARTICIPATION IN LATIN AMERICAN AND A 9% MARKET PARTICIPATION IN THE ANDEAN REGION

GROWTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

TOTAL INVESTMENT (US$ MM) 2012 2013 2014 2016 2015 2017 136 229 188 341 299 172 TOTAL 1,443

• 1. Using the following exchange rates: US$1= CLP 640.62 M&A considers cash fmows used for acquiring subsidiares or other businesses. Minority

interests considers cash fmows used for acquiring non-controlling interests and other payments to acquire joint ventures. Greenfjelds and landbank includes purchase of other long-term assets. This does not include other investments, including interests recieved, purchases of property, plant and equpment, purchases of intangible assets, dividends recieved, and other inputs (outputs) of cash.

5% Landbank 12% M&A 12% Minority Interest 71% Greenfjelds and expansions

PARQUE ARAUCO’S GROWTH HAS COME FROM GREENFIELD PROJECTS, M&A AND MINORITY INTEREST PURCHASES

77 2018

GROWTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 5% 3% 8%

OUR VALUE CREATION SPREAD IS APPROXIMATELY 3%

24 Cap Rate WACC Spread Over WACC

GROWTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

Parque Arauco’s value creation is proven by the fact that it has had one

• f the highest “Total Return” of the real estate sector in the last years.

Source: Bloomberg

• 1. Total return includes dividends as of December 31, 2018.

TOTAL RETURN 1, LAST 10 YEARS ANNUALIZED, LOCAL CURRENCY Taubman 11% Falabella 13% Simon 17% Iguatemi 21% Macerich 15% Parque Arauco 23% Klepierre 10% BR Malls 17% Multiplan 21% S&P 500 13% IPSA 8% Cencosud 5% Hammerson 3% Intu

• 6%

TOTAL RETURN

TOTAL RETURN 1, LAST 5 YEARS ANNUALIZED, LOCAL CURRENCY Fibra Uno Intu Iguatemi Simon Aliansce Parque Arauco IPSA Klepierre Multiplan BR Malls Macerich S&P 500 Falabella Taubman Hammerson Cencosud 13% 3% 7%

• 1%

10% 4%

• 4%

15% 0% 7% 8% 3%

• 6% -7%
• 2%
• 12%

GROWTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

PARQUE ARAUCO IS SUPPORTING THE GLOBALIZATION OF SEVERAL BRANDS ENTERING THE ANDEAN REGION

53.0 52.7 44.0 21.3 9.9 23.1 13.2 8.7 U n i t e d S t a t e s C h i l e U n i t e d K i n g d

• m

A r g e n t i n a M é x i c

• P

e r ú B r a z i l V e n e z u e l a RETAIL PRESENCE BY COUNTRY (% OF GLOBAL BRANDS IN COUNTRY) 1

FIRST OPENINGS IN CHILE FIRST OPENINGS IN PERU FIRST OPENINGS IN COLOMBIA

1) Source: CBRE: How Global is the business of retail? (2017)

There is still potential for new international brands to enter the Chilean, Peruvian and Colombian markets.

27.5 C

• l
• m

b i a

GROWTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

INNOVATING IN A NEW BUSINESS ENVIRONMENT

Digital Directories New webpages New Wifj Smart parking Customer journey redesign App development E-COMMERCE SALES GROWTH 1 PARQUE ARAUCO IS INVESTING IN TECHNOLOGY INTERNET USE FOR ONLINE SHOPPING AND BILL PAYING (%) 2 United States China Chile Colombia Perú 2.191 77% 49% 30% 12% 7% 1) Source: Eurmonitor, December 2017 2) Source: Global Findex 2017 (WorldBank) 15.0% 26.0% 11.6% 23.3% 14.1% 23.5% 13.4% 26.8% 13.1% 32.7% 2013 2017 2014 2015 2016 0.4% 3.7% 1.2% 2.5% 3.0% 1.2% 0.9% 1.2% 1.5%

• 1.6%

2013 2014 2015 2016 2017 BRICK AND MORTAR SALES GROWTH 1 ECOMMERCE SALES OVER TOTAL RETAIL SALES 1 8.5% 9.3% 10.3% 11.6% 13.3% 2.4% 1.9% 3.2% 1.6% 1.3% 2013 2014 2015 2016 2017 USA Chile, Perú, Colombia USA Chile, Perú, Colombia

GROWTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 CLOSING

• 1. Source: International Council of Shopping Centers, World Bank, The Brooking Institution, CoStar, Alphawise, CASC, CapitalLand

Mall Trust, Japan Council of Shopping Centers, Mexico (CBRE), Brazil (ABRASCE), Peru (ACCEP), Morgan Stanley Research

PARQUE ARAUCO PARTICIPATES IN COUNTRIES WITH GROWING RETAIL MARKETS

GROWTH

«

100 200 300 400 500 600 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 GDP / GLA GLA per 1,000 inhabitants GLA per 1000 inhabitants GDP / GLA 50 100 150 200 250 300 500 1.000 1.500 2.000 2.500 GDP / GLA GLA per 1,000 inhabitants GLA per 1000 inhabitants GDP / GLA

ROOM FOR GROWTH IN EMERGING ECONOMIES 1 RETAIL MARKETS IN CAPITAL CITIES1

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

WORKPLACE RECOGNITION MANAGEMENT RECOGNITION SUSTAINABILITY RECOGNITION INVESTOR RELATIONS RECOGNITION 1st place ranking in 2017 Transparency in Reporting on Anti-Corruption. For the third year running, in 2018 Parque Arauco is part of the Dow Jones Emerging Market Sustainability Index. We are the first Latin American real estate company to be part of this prestigious index. 2nd best Investor Relations program in 2017 Latin American Real Estate sell-side ranking by Institutional Investor. Parque Arauco was recognized by Great Place to Work in Chile in 2017.

PARQUE ARAUCO HAS RECEIVED IMPORTANT RECOGNITIONS FROM LOCAL AND INTERNATIONAL ORGANIZATIONS

SUSTAINABILITY & CORPORATE GOVERNANCE

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

SUSTAINABILITY AGENDA

GENERATING SOCIAL VALUE Develop programs and initiatives that support local and emerging entrepreneurship in Chile, Peru and Colombia. Conduct activities that promote a culture of inclusion and accessibility at our shopping centers in Chile, Peru and Colombia. Develop and implement a corporate strategy on engagement with surrounding communities. RESPONSIBLY OPERATING OUR SHOPPING CENTERS Provide training on and launch a tool for assessing our strategic suppliers’ sustainability practices in Chile, Peru and Colombia. Implement sustainable construction standards for future Parque Arauco projects. Measure environmental performance of operational shopping centers and effjciently manage natural resources. COMMITMENT AND LEADERSHIP IN DECISION MAKING Continue progress on assessment and implementation of labor practices in order to be recognized as a company that attracts the best talent. Implement a risk management model Strengthen ethics and good corporate governance practices. OTHER HIGHLIGHTS We adhere to the United Nations Global Compact. We continued to be the only Latin American Real Estate Company in the Dow Jones Sustainability Emerging Markets Index. We published our fjrst integrated annual report based on our 2017 results.

SUSTAINABILITY R e s p

• n

s a b i l i t y O p e r a t i n g G e n e r a t i n g S

• c

i a l V a l u e C

• m

m i t m e n t a n d L e a d e r s h i p O u r S h

• p

p i n g C e n t e r i n D e c i s i

• n

M a k i n g Support for local and emerging Enterpreneurship Managing Working conditions with our value chains Social integration of

• ur shopping

center Strengthening ties with Neighboring communities Managing and monitoring Ethics and good corporate governance Atracting and retaining talent Magaging the enviromental impact of shopping center

• perations

Magaging the enviromental impact of shopping center construction

IN THE LAST YEARS WE HAVE CONTINUED ADVANCING OUR SUSTAINABILITY STRATEGY

SUSTAINABILITY & CORPORATE GOVERNANCE

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

LIABILITIES / EQUITY EBITDA/FINANCIAL EXPENSES NET FINANCIAL DEBT/EBITDA NET FINANCIAL DEBT / EQUITY 2012 3.42x 2013 3.89x 2014 3.31x 2015 3.33x 2016 3.04x 2017 3.42x 2012 0.43x 2012 3.85x 2013 0.59x 2013 5.00x 2014 0.47x 2014 4.25x 2015 0.76x 2015 5.87x 2016 0.72x 2016 5.88x 2017 0.77x 2017 5.54x > 2.50x < 1.40x < 1.50x 2012 0.78x 2013 0.89x 2014 0.81x 2015 1.15x 2016 1.18x 2017 1.21x

PARQUE ARAUCO’S POLICY IS TO FINANCE PROJECTS WITH 50% DEBT AND 50% EQUITY, AND IS COMFORTABLY WITHIN ALL ITS COVENANTS

2018 1.21x 2018 0.66x 2018 3.76x 2018

5.19x

_ _ _

FINANCIAL STRENGTH

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

CONSERVATIVE DEBT STRUCTURE

141 199 99 82 62 25 15 15 21 185 22 45 60 55 54 56 57 56 58 52 52 30 14 6 4 4 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 LIABILITY AMORTIZACION PROFILE AND DURATION (MM USD) 1

6.3

years

5.7

years

DEBT DURATION LOCAL RATING RENTAL CONTRACT LENGTH

Fitch: AA- Feller: AA- ICR: AA- SUMMARY OF DEBT BY CURRENCY SUMMARY OF LIABILITY STRUCTURE SUMMARY OF DEBT RATES 74% 5% 12% 66% 4% 10% 90% 30% 9% UF CLP PEN Bonds Leasing Variable Fixed Loans COP Source: Parque Arauco (1) Does not include accrued interests and the exchange rate is at the close of December 31, 2018. DEC 2018 DEC 2018 DEC 2018

FINANCIAL STRENGTH

«

10 2018

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 The cost of debt of Parque Arauco has decreased 180 POINTS from

4.1% to 2.3%

the spread fjve years ago had collateral agreements, while the current spread is unsecured with no collateral.

GENERIC LONG-TERM BOND ISSUED BY PARQUE ARAUCO IN CHILE

Source: Risk America DATE: 12 / 12 / 2014 BASE: 1.66 % SPREAD: 1.74 % RATE: 3.40 % DURATION: 14.3 DATE: 04 / 17 / 2015 BASE: 1.62 % SPREAD: 1.68 % RATE: 3.30 % DURATION: 14.77 DATE: 10 / 12 / 2016 BASE: 1.46 % SPREAD: 1.02% RATE: 2.48% DURATION: 12.71

THE COST OF DEBT HAS DECREASED IMPORTANTLY IN THE PAST 5 YEARS

Generic AA Chilean Bond (Duration 15 years) 33 DATE: 08 / 30 / 2018 BASE: 1.59 % SPREAD: 0.75% RATE 2.34% DURATION: 8.9

FINANCIAL STRENGTH

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Central Bank of Chile Interest Rate

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

4.

FUTURE DEVELOPMENTS

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

FUTURE DEVELOPMENTS

1) Projects in Chile in UF, in Peru in ThPEN, in Colombia in MCOP 2) Considering the exchange rate as of December 31, 2018: 27.565.79 CLP/UF, 694.77 CLP/USD, 3,239.45 COP/USD, 3.37 PEN/USD. 3) In addition to the 11,000 m2, this expansion includes a 401 room Hilton by Hilton Hotel and the largest hotel convention center in Santiago. 4) This project also includes a 15,000 m2 tower. 5)In accordance with the relevant event reported on June 1, 2018, this is related to a binding agreement with the Wiese Group for a business combination. The execution of this agreement requires various restructurings and legal matters, considering that additionally there is a call and put option for Parque Arauco and the Wiese Group, respectively. NEW PROJECTS TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD2 La Molina Development Perú Neighborhood TBD 19,500 100% 19,500 180,000 53 Subtotal 19,500 19,500 53 EXPANSIONS TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD2 Parque Arauco Kennedy - Phase 1³ Expansion Chile Regional / Hotel 2H21 11,000 100% 11,000 5,355,000 212 Parque Arauco Kennedy - Phase 24 Expansion Chile Regional/Tower 2H24 10,000 100% 10,000 2,200,000 86 Arauco Premium Outlet Buenaventura Espansión Chile Outlet 2H19 3,500 100% 3,500 140,000 6 Subtotal 24,500 24,500 304 OTHER PROJECTS TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD2 MegaPlaza5 Minority Interest Perú Various 2H19 N/A 50% 123.000 583.450 173 Subtotal

• 123.000

173 PROJECTS INCORPORATED IN 2018 TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD2 Viamix Colonial Development Perú Neighborhood 1Q18 3,000 100% 3,000 25,000 6 El Quinde Cajamarca Expansion Perú Regional 2Q18 2,500 100% 2,500 40,000 11 Parque Angamos Development Chile Neighborhood 3Q18 10,500 55% 5,775 811,000 34 Arauco Express Coquimbo Development Chile Strip Center 4Q18 3,000 53% 1,590 155,000 6 Arauco Express Ossandón Expansion Chile Strip Center 4Q18 1,000 53% 530 71,500 3 Bazar Gourmet- Parque Arauco Kennedy Expansion Chile Regional 4Q18 1,000 100% 1,000 120,000 5 Arauco El Bosque Acquisition Chile Regional 4Q18 30,000 100% 30,000 1,750,000 69 Subtotal 51,000 44,395 132 Total 95,000 211,395 662 Remaining to Invest 450

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

NAME M2 % OWNERSHIP TOTAL COST (LOCAL CURRENCY)1 TOTAL COST (MUSD)2 Quilicura 25,486 100% 78,000 3 Buenaventura 115,864 100% 455,000 18 Chicureo 47,614 100% 206,000 8 Los Andes 39,254 100% 117,000 5 San Pedro de la Paz 17,002 100% 51,000 2 Total Chile 245,220 100% 907,000 36 Chimbote 42,657 100% 18,000 5 Talara 30,675 100% 9,400 3 Ica 12,643 100% 13,500 4 Chiclayo 6,609 100% 6,300 2 Pomalca Chiclayo 45,042 100% 6,565 2 Lambayeque- MegaPlaza 25,260 50% 18,900 6 San Juan de Lurigancho- MegaPlaza 80,000 50% 10,415 3 Otros MegaPlaza 106,157 50% 85,685 24 Total Peru 349,043 70% 168,765 49 Neiva 49,537 100% 18,000 6 Valledupar 46,000 100% 30,000 9 Barranquilla 56,166 100% 76,000 23 Total Colombia 151,703 100% 124,000 38 Total 745,966 86% 123 TOTAL COST US$ 123 MILLION

LANDBANK BY TOTAL COST (DECEMBER 2018)

31% 29% 40% Chile Peru Colombia

LANDBANK

1) Landbank in Chile in UF, in Peru in ThPEN, in Colombia in MCOP. 2) Considering the exchange rate as of December 31, 2018: 27.565.79 CLP/UF, 694.77 CLP/USD, 3,239.45 COP/USD, 3.37 PEN/USD.

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018

MEGAPLAZA BUSINESS COMBINATION

MegaPlaza is a Peruvian shopping center company, which began its

• peration in 2002 with the opening of its fjrst mall, MegaPlaza Norte in

Lima. There are 11 MegaPlaza shopping centers throughout the country. MegaPlaza is a joint venture between Parque Arauco and the Wiese Group. In June 2018, Parque Arauco and the Wiese Group signed an agreement for a business combination resulting in the formation of a new entity, Newco I. This agreement includes a put and call option, in which Parque Arauco can buy and obtain 100% of the operation of MegaPlaza and the Wiese Group has the option to sell their participation.

Jaén MegaPlaza Norte MegaPlaza Villa Chorrillos MegaPlaza Villa El Savador MegaPlaza Villa El Savador II Chimbote Cañete Barranca Chincha Huaral Pisco Lima LOCATIONS City Total GLA (m2) Occupancy MegaPlaza Norte Lima 112.000 98,2% MegaPlaza Express Villa Chorrillos Lima 8.000 98,1% MegaPlaza Chimbote Chimbote 28.000 94,7% MegaPlaza Express Villa El Salvador Lima 9.000 93,8% MegaPlaza Express Chincha Chincha 10.500 94,1% MegaPlaza Cañete Cañete 16.500 99,4% MegaPlaza Express Barranca Barranca 10.000 82,9% MegaPlaza Pisco Pisco 14.500 95,4% MegaPlaza Jaén Jaén 14.500 96,5% MegaPlaza Huaral Huaral 14.000 80,5% MegaPlaza Villa El Salvador II Lima 9.000 84,3% Total Perú 246.000 95,1% 240,500 246,000 2017 2018 +2.3% TOTAL GLA (M2) 149,287 150,233 2017 2018 +0.6% REVENUE LTM (M PEN) EBITDA LTM (M PEN) 149,287 146,096 2017 2018

• 2.1%

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PARQUE ARAUCO Investor Presentation Fourth Quarter 2018 ADJUSTED FFO MARGIN: AFFO / revenues AFFO: Adjusted Funds From Operations: Net Profjt Depreciation & Amortization - Other Income/ expenses - Share of Profjt (Loss) of Associates Accounted - Foreign Exchange Difgerences - Income (Loss) for indexed assets and liabilities - Gains (losses) from the difgerence between the previous book value and the fair value of fjnancial assets - Deferred tax+ Associates accounted Adjusted FFO CONTROLLING ADJUSTED FFO: AFFO attributable to the shareholders of the company CONTROLLING FFO: FFO attributable to the shareholders of the company EBITDA : Earnings Before Income Tax Depreciation and Amortization: Revenues + Cost of Sales + Administration Expenses - Depreciation and Amortization EBITDA margin -EBITDA divided by revenues EPS: Earnings Per Share: Net income attributable to the equity holders of the company/weighted average number of shares outstanding FFO: Funds From Operations: Net Profjt - Depreciation & Amortization - Share of Profjt (Loss) of Associates Accounted + Associates Accounted FFO GLA: Gross Leasable Area. Equivalent to the sum of all the areas available for lease GREENFIELD PROJECTS: Organic development of new shopping centers LANDBANK: Land held by the company for future development LTM: Refers to information from the last twelve months MONTHLY REVENUES/M2 : Monthly revenues divided by the occupied GLA for the period MONTHLY SALES/M2 : Monthly tenant sales divided by the occupied GLA for the period NEIGHBORHOOD MALL: A shopping mall with a GLA between 6,000 and 20,000 m2 NET INCOME MARGIN: Net profjt / revenues NOI: Net Operating Income: Revenues + Cost of Sales + Administration Expenses - Depreciation & Amortization + Associates accounted NOI OCCUPANCY: GLA paying rent divided by total GLA OCCUPANCY COST: Minimum rent, plus variable rent, plus common expenses, plus a promotion fund that the tenants pay Parque Arauco divided by the sales of the tenant. OWNED GLA: Total GLA weighted by Parque Arauco’s interest in the mall PIPELINE: Greenfjeld and expansion projects under development PREMIUM OUTLET: Shopping center located outside

• f the city ofgering name brand clothing and goods for

a reduced price REGIONAL MALL: A shopping mall with a GLA over 20,000 m2. SSR: Same Store Rent: Percentage change in rent collected from tenants that paid rent in both of the periods compared SSS: Same Store Sales: Percentage change in sales from tenants that reported sales in both of the periods compared STRIP CENTER: A shopping center with a GLA less than 6,000 m2 Tenant Sales Tenant sales of the consolidated assets UF:Unidad de Fomento: A chilean currency unit indexed according to infmation on a daily basis.

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GLOSSARY

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