Investor Presentation FEBRUARY 2017 CONTACTS SARAH INMON (HEAD OF - PowerPoint PPT Presentation

1 Investor Presentation FEBRUARY 2017 CONTACTS SARAH INMON (HEAD OF INVESTOR RELATIONS) | EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) TEL: (562) 22990510 | EMAIL: IR@PARAUCO.COM - 1 -

2 2 disclaimer This document has been prepared by Parque Arauco for the purpose of providing general infor- mation about the Company. The Company assumes no responsibility for, or makes any represen- tation 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 subjec - tive 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. 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 infor- mation 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. - 2 -

3 INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS - 3 -

INTRODUCTION Parque Arauco at a glance parque arauco OPERATIONAL METRICS BY COUNTRY Parque Arauco is the third largest shopping center operator in Chile , the Peru 38.9% second largest Peru, and the fourth largest in Colombia. Peru 30.9% Indicator/ Country CHILE PERU COLOMBIA TOTAL Colombia TOTAL 14.6% TOTAL GLA 1 Total GLA (m 2 ) 1 454,000 380,000 143,000 977,000 REVENUES 2 977,000 m 2 Owned GLA 383,108 270,000 124,775 777,883 US$MM 237 Revenues 2016 (US$MM) 2 147 73 17 237 Colombia 46.5% 62.1% 7.0% # of Operations 26 18 3 46 Chile Chile Shareholder structure (December 2016) 5% 2% Others Local Mutual Funds 26% OPERATIONAL METRICS BY FORMAT Controlling Group Neighborhood 24% Neighborhood MARKET CAP 3 Outlet 9.9% 5.3% Foreign Outlet 5.2% investment US$MM 2,020 6.2% Strip center Funds 5% 4.0% Said Yarur Family Strip center 4.0% TOTAL TOTAL GLA 1 3% Abumohor Family REVENUES 2 977,000 m 2 13% 22% US$MM 237 Local pension Local brokers Funds 79.9% 85.5% Daily Traded Volume 2016: US$MM 1.8 Regional Regional Source: Parque Arauco (1) Does not include Marina Arauco nor Mall Center Curicó (2) Revenues from January 2016- December 2016. Exchange rate: US$= CLP 676.74 (3) Source: Bloomberg

5 INTRODUCTION In the last five years Parque Arauco has doubled GLA, revenues and EBITDA GLA (1) m 2 1982 Parque Arauco Kennedy opens as fjrst shopping center in Chile 1993 Arauco Maipu inaugurates in Santiago +2.0 X 1995 Parque Arauco S.A. IPO 1997 Inauguration of Marina Arauco in Viña del Mar, Chile 947,000 2006 Parque Arauco expands into Peru with the purchase of a 45% stake in MegaPlaza Norte in Lima 818,500 728,500 2008 Parque Arauco acquires Arauco Estación in Santiago, Chile 693,100 2010 Parque Arauco opens fjrst mall in Colombia, Parque Arboleda in 559,700 Pereira 479,200 2011 Capital increase for US$145 MM 2012 Parque Arauco enters outlet format in Chile by acquiring Arauco Premium Outlet Buenaventura 2014 Capital increase for US$182 MM 2015 Purchase of minority shareholders in Colombia and Peru 2011 2012 2013 2014 2015 2016 2016 Capital increase for US$100 MM Revenues (1) US$ MM EBITDA (1) US$ MM +1.9 X +1.8 X 163 237 215 148 185 126 158 109 96 137 91 127 2011 2012 2013 2011 2012 2013 2014 2015 2016 2014 2015 2016 Source: Parque Arauco. Exchange Rate: US$= 676,74 (1) Does not include Marina Arauco nor Mall Center Curicó nor Mall Costa Pacífjco in Coronel. - 5 -

6 INTRODUCTION The spread over the cost of capital of our last projects is approximately 3% 9% 6% 3% Real WACC (2) Spread Over Real WACC Real Cap Rate (1) Source: Parque Arauco (1) Real caprate is the yield on cost rate averaged by amount invested and considers the following properties: Arauco Express Calama, Arauco Express Ciudad Empresarial I, Arauco Express Colón, Arauco Express Huechuraba, Arauco Express Irarrázaval, Arauco Express Las Brujas, Arauco Express Luis Pasteur, Arauco Express Manuel Montt, Arauco Express Palmares, Arauco Premium Outlet Buenaventura, Arauco Premium Outlet Curauma, Arauco Premium Outlet San Pedro, Arauco Premium Outlet Coqumbo, Arauco Quilicura, MegaPlaza Chimbote, MegaPlaza Express Villa El Salvador, MegaPlaza Express Chincha, InOutlet Faucett, Viamix Chorrillos, Viamix Las Malvinas, InOutlet Premium Lurín, MegaPlaza Cañete, MegaPlaza Express Barranca, MegaPlaza Pisco, El Quinde Cajamarca, El Quinde Ica, Plaza Jesús María, Parque Caracolí. (2) Weighted Average Cost of Capital

7 INTRODUCTION Total Return Parque Arauco’s value creation is proven by the fact that it has had one of the highest “Total Return” of the real estate sector in the last years Total Return 1 , last 5 years Total Return 1 , last 15 years Annualized, local currency Annualized, local currency 17% 16% 16% 18% Falabella 15% 14% 14% 13% 18% Parque Arauco 12% 11% 10% 10% Simon 18% 8% Taubman 16% 7% Macerich 13% 4% 3% Keplierre 13% 1% -2% -7% General Growth 10% Parque Arauco Keplierre S&P 500 Unibail General Growth Hammerson Macerich Multiplan Simon Iguatemi Fibra Uno Taubman Falabella Intu Aliansce IPSA IPSA 9% Hammerson 8% BR Malls Cencosud S&P 500 7% Intu 3% Source: Bloomberg (1) Total return includes dividends as of December 31,2016. - 7 - Intu

INTRODUCTION Revenue type and contract duration FIXED VS VARIABLE RENTAL REVENUES CONTRACT LENGTH as of December 30, 2016 (BASED ON º /º OF revenues) Other Revenues 15% 85% Rental Revenues 39% 100% 10% 10% Variable Revenues 15% 41% ‹2 YEARS 2-3 YEARS 3-4 YEARS ›4 YEARS TOTAL 85% Fixed Revenues OUR RENTAL REVENUES ARE DERIVED PRIMARILY 39º/º OF OUR CONTRACTS HAVE A DURATION OF MORE FROM FIXED CONTRACTS AND ARE PROTECTED AGAINST INFLATION THAN 4 YEARS AND THE AVERAGE LENGTH IS 6.5 YEARS

9 INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS - 9 -

10 OUR OPERATIONS Portfolio Parque Arauco has iconic and dominant shopping centers in Chile, Peru and Colombia ARAUCO MAIPÚ - CHILE LARCOMAR - PERÚ PARQUE ARAUCO KENNEDY - CHILE LA COLINA- COLOMBIA MEGAPLAZA NORTE - PERÚ ARAUCO ESTACIÓN - CHILE - 10 -

11 OUR OPERATIONS Portfolio Parque arauco is concentrated in Santiago and Lima, which makes the company a “market specialist” in these cities Antofagasta Coquimbo Cajamarca Santiago Lima San Antonio Chillán Cañete Pisco Quilicura Buenaventura Arequipa Concepción Outlet MegaPlaza Norte Kennedy Plaza Jesús María InOutlet Faucett Maipú Estación Central Larcomar Villa Chorrillos Villa El Salvador InOutlet Premium Lurín SANTIAGO 1 : 58 % DEL NOI DE PARQUE ARAUCO LIMA 1 : 19 % DEL NOI DE PARQUE ARAUCO Source: Parque Arauco (1) Santiago represents 90% of the NOI of Chile and Lima represents 65% of the NOI of Peru. - 11 - NOI: Net Operating Income: Ingresos ordinarios + Costo de ventas + Gastos de Administración - Depreciación y Amortización + NOI Empresas relacionadas

12 Chile OUR OPERATIONS Portfolio Parque Arauco has 6 regional shopping centers, 4 outlets and 14 strip centers in Chile. the average age of the portfolio is 17 years. Year of Owned GLA GLA (m 2 ) % Ownership Occupancy Antofagasta (m 2 ) incorporation Coquimbo Parque Arauco Kennedy 113,500 100% 113,500 98.6% 1982 Arauco Maipú 73,500 100% 73,500 99.0% 1993 Santiago Arauco Chillán 32,000 100% 32,000 100.0% 2007 San Antonio Arauco Estación 66,500 83% 55,195 97.4% 2008 Chillán Arauco San Antonio 28,500 51% 14,535 94.2% 2009 Quilicura Buenaventura Arauco Express 33,000 53% 17,378 84.9% 2012 Concepción Outlet Kennedy Arauco Premium Outlets (1) 45,000 100% 45,000 92.4% 2012 Maipú Estación Central Arauco Quilicura 32,000 100% 32,000 99.8% 2013 Mall Costa Pacífjco 30,000 100% 30,000 N/A 2017 Total Chile 454,000 84% 413,108 96.7% Source: Parque Arauco (1) Arauco Premium Outlet has four outlets located in Santiago, Concepción, Coquimbo and Curauma. (2) Arauco Express has 14 Stripcenters in Chile: 11 strip centers in Santiago, 1 in Viña del Mar, 1 in Calama, and 1 in Antofagasta. - 12 -