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

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Investor Presentation

FEBRUARY 2017

CONTACTS

SARAH INMON (HEAD OF INVESTOR RELATIONS) | EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) TEL: (562) 22990510 | EMAIL: IR@PARAUCO.COM

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disclaimer

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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

• f 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

• wn 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.

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INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

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

parque arauco OPERATIONAL METRICS BY COUNTRY OPERATIONAL METRICS BY FORMAT Shareholder structure (December 2016)

46.5%

Chile

62.1%

Chile Colombia

14.6%

Colombia

7.0%

Peru

30.9%

Peru

38.9%

Parque Arauco is the third largest shopping center operator in Chile , the second largest Peru, and the fourth largest in Colombia. Total GLA (m2)1 454,000 380,000 143,000 977,000 Owned GLA 383,108 270,000 124,775 777,883 Revenues 2016 (US$MM)2 147 73 17 237 # of Operations 26 18 3 46

TOTAL GLA1 977,000 m2 TOTAL REVENUES2 US$MM 237

INTRODUCTION

Parque Arauco at a glance

MARKET CAP3 US$MM 2,020

24%

Foreign investment Funds

22%

Local brokers

2%

Local Mutual Funds

5%

Others

26%

Controlling Group

5%

Said Yarur Family

3%

Abumohor Family

13%

Local pension Funds

Indicator/ Country CHILE PERU COLOMBIA TOTAL

Daily Traded Volume 2016: US$MM 1.8

85.5%

Regional Outlet

5.2%

Strip center

4.0%

Neighborhood

5.3%

TOTAL REVENUES2 US$MM 237

79.9%

Regional Outlet

6.2%

Strip center

4.0%

Neighborhood

9.9%

TOTAL GLA1 977,000 m2

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INTRODUCTION

In the last five years Parque Arauco has doubled GLA, revenues and EBITDA

GLA(1) m2 Revenues(1) US$ MM EBITDA(1) US$ MM

+2.0X +1.9X +1.8X

Source: Parque Arauco. Exchange Rate: US$= 676,74 (1) Does not include Marina Arauco nor Mall Center Curicó nor Mall Costa Pacífjco in Coronel.

1982 Parque Arauco Kennedy opens as fjrst shopping center in Chile 1993 Arauco Maipu inaugurates in Santiago 1995 Parque Arauco S.A. IPO 1997 Inauguration of Marina Arauco in Viña del Mar, Chile 2006 Parque Arauco expands into Peru with the purchase of a 45% stake in MegaPlaza Norte in Lima 2008 Parque Arauco acquires Arauco Estación in Santiago, Chile 2010 Parque Arauco opens fjrst mall in Colombia, Parque Arboleda in Pereira 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 2016 Capital increase for US$100 MM

2011 2012 2013 2015 2014 2016 479,200 559,700 693,100 728,500 818,500 947,000 2011 2012 2013 2015 2014 2016 127 137 158 185 215 237 2011 2012 2013 2015 2014 2016 91 96 109 126 148 163

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9% Real Cap Rate(1) Real WACC (2) Spread Over Real WACC 6% 3%

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 INTRODUCTION

The spread over the cost of capital of our last projects is approximately 3%

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Total Return1, last 15 years Annualized, local currency Total Return1, last 5 years Annualized, local currency

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

Keplierre Keplierre General Growth General Growth Simon Simon S&P 500 S&P 500 Hammerson Hammerson Iguatemi Unibail Macerich Macerich Fibra Uno Falabella Falabella Parque Arauco Parque Arauco Multiplan Taubman Taubman Intu Intu Intu Aliansce BR Malls IPSA IPSA Cencosud 17% 18% 18% 18% 16% 13% 13% 10% 9% 8% 7% 3% 11% 14% 7% 16% 10% 13% 3% 16% 10% 14% 4% 15% 8% 12% 1%

• 7%

Source: Bloomberg (1) Total return includes dividends as of December 31,2016.

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INTRODUCTION

Revenue type and contract duration

CONTRACT LENGTH (BASED ON º /º OF revenues) FIXED VS VARIABLE RENTAL REVENUES as of December 30, 2016

41% 10% 10% 39% 100%

‹2 YEARS 2-3 YEARS 3-4 YEARS ›4 YEARS TOTAL

Variable Revenues

15% 85%

Fixed Revenues

OUR RENTAL REVENUES ARE DERIVED PRIMARILY FROM FIXED CONTRACTS AND ARE PROTECTED AGAINST INFLATION 39º/º OF OUR CONTRACTS HAVE A DURATION OF MORE THAN 4 YEARS AND THE AVERAGE LENGTH IS 6.5 YEARS

Other Revenues

15% 85%

Rental Revenues

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INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

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

OUR OPERATIONS

Portfolio Parque Arauco has iconic and dominant shopping centers in Chile, Peru and Colombia

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OUR OPERATIONS

Portfolio Parque arauco is concentrated in Santiago and Lima, which makes the company a “market specialist” in these cities

Source: Parque Arauco (1) Santiago represents 90% of the NOI of Chile and Lima represents 65% of the NOI of Peru. NOI: Net Operating Income: Ingresos ordinarios + Costo de ventas + Gastos de Administración - Depreciación y Amortización + NOI Empresas relacionadas

San Antonio Chillán Concepción

Maipú Kennedy Buenaventura Outlet Estación Central Quilicura

Santiago

Antofagasta Coquimbo

Lima

Cañete Arequipa Pisco

Villa El Salvador Villa Chorrillos Larcomar MegaPlaza Norte InOutlet Faucett

Cajamarca

InOutlet Premium Lurín Plaza Jesús María

SANTIAGO1: 58% DEL NOI DE PARQUE ARAUCO LIMA1: 19% DEL NOI DE PARQUE ARAUCO

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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.

Parque Arauco Kennedy 113,500 100% 113,500 98.6% 1982 Arauco Maipú 73,500 100% 73,500 99.0% 1993 Arauco Chillán 32,000 100% 32,000 100.0% 2007 Arauco Estación 66,500 83% 55,195 97.4% 2008 Arauco San Antonio 28,500 51% 14,535 94.2% 2009 Arauco Express 33,000 53% 17,378 84.9% 2012 Arauco Premium Outlets(1) 45,000 100% 45,000 92.4% 2012 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%

Year of incorporation Occupancy % Ownership GLA (m2) Owned GLA (m2)

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.

San Antonio Chillán Concepción

Maipú Kennedy Buenaventura Outlet Estación Central Quilicura

Santiago

Chile

Antofagasta Coquimbo

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OUR OPERATIONS

Portfolio In Peru in the company has 6 regional shopping centers and 8 neighborhood shopping centers, 2 outlets and 2 strip centers. The average age of the portfolio is 5 years.

perú

MegaPlaza Norte 110,000 50% 55,000 98.9% 2006 MegaPlaza Express Villa Chorrillos 8,000 50% 4,000 96.6% 2009 Larcomar 26,500 100% 26,500 92.7% 2010 Parque Lambramani 29,500 100% 29,500 88.0% 2010 MegaPlaza Chimbote 28,000 50% 14,000 95.5% 2012 MegaPlaza Express Villa El Salvador 9,500 50% 4,750 98.3% 2012 MegaPlaza Express Chincha 9,000 50% 4,500 76.1% 2013 InOutlet and Viamix(2) 22,500 100% 22,500 68.7% 2013 MegaPlaza Cañete 16,500 50% 8,250 98.0% 2013 MegaPlaza Express Barranca 10,000 50% 5,000 98.8% 2013 MegaPlaza Pisco 14,500 50% 7,250 95.3% 2015 El Quinde Cajamarca 30,500 100% 30,500 92.8% 2015 El Quinde Ica 36,500 100% 36,500 96.5% 2015 Plaza Jesús María 14,500 100% 14,500 75.6% 2016 MegaPlaza Jaén 14,500 50% 7,250 82.7% 2016 Total Perú 380,000 71% 270,000 92.6%

Year of incorporation Occupancy % Ownership1 GLA (m2) Owned GLA (m2)

Source: Parque Arauco (1)Only parnter in Peru is Grupo Wiese, which includes MegaPlaza formats (50%). (2) InOutlet and Viamix includes two premium outlet malls in Lima and two strip centers in Lima.

Ica

Lima

Cañete Arequipa Pisco

Villa El Salvador Villa Chorrillos Larcomar MegaPlaza Norte InOutlet Faucett

Cajamarca

InOutlet Premium Lurín Plaza Jesús María

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OUR OPERATIONS

Portfolio Parque Arauco has 3 regional shopping centers in Colombia and the average age of the portfolio is 3 years

COLOMBIA

Parque Arboleda 40,500 55% 22,275 95.7% 2010 Parque Caracoli 38,500 100% 38,500 88.4% 2013 Parque La Colina 64,000 100% 64,000 N/A 2016 Total Colombia 143,000 87% 124,775 91.6%

Bucamaranga Pereira

Year of incorporation Occupancy % Ownership GLA (m2) Owned GLA (m2)

Source: Parque Arauco

Bogotá

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INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

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1.

Strong results in a challenging macroeconomic environment.

2.

Stable and diversified revenues

4.

Solid corporate governance and increased concern with sustainability

6.

Important growth

• pportunities.

3.

Strong commercial relationships with local and global businesses.

5.

Conservative debt structure and outstanding financial performance.

investment highlights

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STRONG RESULTS IN A CHALLENGING MACROECONOMIC ENVIRONMENT

Positive but weaker macroeconomic outlook and attractive industry dynamics

Parque Arauco is positioned in countries with strong macroeconomic prospects GDP Growth Chile

2015 2.3% 2016 1.6% 2017f 2.2%

Peru

2015 3.3% 2016 3.9% 2017f 4.5%

Colombia

2015 3.3% 2016 2.5% 2017f 2.8%

Retail Sales Growth Chile

2014 7.4% 2015 6.0% 2016 4.9%

Peru

2014 8.2% 2015 4.9% 2016 7.6%

Colombia

2014 5.9% 2015 7.1% 2016 7.2%

Population (Millions) Chile

2014 17.8 2015 18.0 2016 18.2

Peru

2014 30.8 2015 31.1 2016 31.5

Colombia

2014 47.7 2015 48.2 2016 48.7

GDP Per Capita, PPP Chile

2014 23,025 2015 23,507 2016 23,969

Peru

2014 12,124 2015 12,518 2016 13,019

Colombia

2014 13,430 2015 13,836 2016 14,161

• Av. Latam:

15,078

• Av. Latam:

41.7

Source: GDP Growth, Population and GDP Per Capita: International Monetary Fund, Consumption: Euromonitor.

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STRONG RESULTS IN A CHALLENGING MACROECONOMIC ENVIRONMENT

Results have been positive in all three countries

1Q1

Chile

Tenant sales2 Revenues2 NOI2

PERU COLOMBIA

940,488 1,024,996

+9.0%

2,577,202 2,749,836

+6.7%

349,727 376,439

+7.6%

91,479 99,417 217,877 244,318

+12.1%

40,614 44,446

+9.4%

80,802 88,850

+10.0%

163,124 189,124

+16.4%

29,080 33,346

+14.7%

(1) GLA in Chile does not include Mall Costa Pacífjco. (2) Chile in MMCLP, Peru in MSoles and Colombia in MMCOP. (2) Not including overhead expenses (Corporate headquarters, regional Services Center, Chile Division, Peru Division and Colombia Division)

2015

409,500 424,000

+3.5%

GLA1

337,500 380,000

+12.6%

71,500 143,000

+100.0% +8.7% 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

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Strong Same Store Growth and a Healthy Occupancy Cost

1) Peru’s Same Store Sales and Same Store Rent in 4Q16 do not include Larcomar due to contingencies.

CHILE SAME STORE SALES / CH %

3Q16 7.2 4Q15 5.5 1Q16 7.7 2Q16 4.1 4Q16 2.6

PERU SAME STORE SALES1 / CH %

3Q16 2.0 4Q15 2.2 1Q16 6.8 2Q16 1.6 4Q16 0.4

COLOMBIA SAME STORE SALES / CH %

3Q16 5.7 4Q15 8.6 1Q16 11.5 2Q16 9.2 4Q16 8.3

CHILE SAME STORE RENT / CH %

3Q16 6.2 4Q15 6.8 1Q16 5.8 2Q16 4.3 4Q16 2.7

PERU SAME STORE RENT1 / CH %

3Q16 5.8 4Q15 3.0 1Q16 9.3 2Q16 3.8 4Q16 4.6

COLOMBIA SAME STORE RENT / CH %

3Q16 5.3 4Q15 12.5 1Q16 11.2 2Q16 8.4 4Q16 5.5

CHILE OCCUPANCY COST

4Q15 10.1% 4Q16 10.0%

54% Others 46% Anchor Stores

PERU OCCUPANCY COST

4Q15 7.2% 4Q16 6.7%

36% Others 64% Anchor Stores

COLOMBIA OCCUPANCY COST

4Q15 9.6% 4Q16 9.2%

69% Others 31% Anchor Stores STABLE AND DIVERSIFIED REVENUES

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socio-economic level diversification (º/º revenues) Country level diversification (º/º revenues) Format level Diversification (º/º revenues)

42 48 10 100

Medium to High Income: Includes ABC1 and C2 in Chile, A and B in Peru and 6, 5 and 4 in Colombia Medium Income: Includes C3 and D in Chile, C and D in Peru and 3 in Colombia Medium to Low Income: Includes E in Chile and Peru and 2 and 1 in Colombia

Source: Parque Arauco. Based on socio-economic composition of community in which malls are located.

62.1%

Chile

7.0%

Colombia

30.9%

Peru

STABLE AND DIVERSIFIED REVENUES

Parque Arauco diversifjes its market risks at a country, format, and socio-economic level

85.5%

Regional Outlet

5.2%

Strip center

4.0%

Neighborhood

5.3%

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STABLE AND DIVERSIFIED REVENUES

With a 39% market share in Chile, Parque Arauco is the market leader in the outlet format in the Andean region

Arauco Premium Outlet Curauma, Chile InOutlet Faucett, Perú Arauco Premium Outlet Buenaventura, Chile Arauco Premium Outlet Concepción, Chile InOutlet Premium Outlet Lurin, Perú Arauco Premium Outlet Coquimbo, Chile

Outlets currently in our portfolio Keys to the Premium Outlet Format

(1) Location

Located near main cities

(2) Brands

Premium name-brands

(3) Discounts

More than 30% discount

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Anchor Stores Non Anchor Stores

Tenant Malls 11 4 10 5 12 Years as a client 35 16 35 12 9 Total GLA (m2) 96.554 33.011 74.548 48.050 6.058 Country

CHILE PERU COLOMBIA CHILE PERU CHILE PERU CHILE PERU CHILE PERU Colombia

18 11 7.316

CHILE PERU COLOMBIA

4 18 8.934

CHILE PERU COLOMBIA

14 14 2.307

CHILE PERU COLOMBIA

Source: Parque Arauco STRONG COMMERCIAL RELATIONSHIPS WITH LOCAL AND GLOBAL BRANDS

Consolidated commercial relationships with well-known tenants

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NEW TENANTS PARQUE ARAUCO KENNEDY IN THE LAST 5 YEARS:

80% of new GLA leased in Parque Arauco Kennedy over the last 5 years has been leased to international brands. Many brands have opened their fjrst store in Chile in Parque Arauco Kennedy during the last fjve years including Tiffany & Co., Dolce & Gabbana, Forever 21, Bath & Body Works, Tory Burch, Victoria’s Secret,Omega, Versace Collection, Vince Camuto, and BCBG.

OTHERS TOTAL 3,020 14.956 GLA GLA NOMBRE NOMBRE

FOREVER 21 TOP SHOP UNDER ARMOUR LOUIS VUITTON GUCCI BANANA REPUBLIC AMERICAN EAGLE AEROPOSTALE DOLCE & GABBANA BURBERRY EMPORIO ARMANI SALVATORE FERRAGAMO TIFFANY & CO EL VOLCAN BOLD ETIQUETA NEGRA MICHAEL KORS RALPH LAUREN TORY BURCH ERMENEGILDO ZEGNA ENTEL ARTE ISABEL ANINAT VICTORIA´S SECRET ETAM MILK CANELA HOME & DECOR METRO CUADRADO JUSTICE BATH & BODY WORKS OCTOBER

1,639 464 445 420 406 363 351 342 316 276 247 241 219 218 214 209 208 207 201 197 190 161 129 123 117 105 114 104 103 102

STRONG COMMERCIAL RELATIONSHIPS WITH LOCAL AND GLOBAL BRANDS

Parque Arauco is supporting the globalization

• f several brands entering the Andean region

International Local

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workplace Recognition Investor Relations recognition Management recognition Sustainability REcognition

Best Capital Markets Strategy: Andes in 2016. In 2016, 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. Best Investor Relations Department for Mid-Size companies according to Santander and Revista Capital in 2016.

Source: Parque Arauco SOLID CORPORATE GOVERNANCE AND INCREASED CONCERN WITH SUSTAINABILITY

Parque Arauco has received important recognitions from local and international organizations

Parque Arauco was recognized by Great Place to Work in Chile and Peru in 2016.

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Source: Parque Arauco SOLID CORPORATE GOVERNANCE AND INCREASED CONCERN WITH SUSTAINABILITY

In the last year we have continued advancing on our sustainability strategy

ESG workstreams

social

• Communication with neighboring communities:

Community relations strategy advancement

• Cultural activities:

Hosting cultural activities in our malls

• Social spaces:

Providing spaces to social organizations

• Donations:

Definition of corporate donation policy

Environment

• Baseline measurement:

Environmental assessment and definition of baseline carbon emissions in Chile, Peru and Colombia

• Sustainable Construction:

Sustainable building criteria applied in InOutlet Lurín in Peru and Parque La Colina in Colombia

• Environmentally friendly operation:

Environmental experts visited assets in Chile, Peru and Colombia, providing a diagnostic report and improvement recommendations

Corporate governance

• Talent attraction:

Attract and retain talent through working conditions

• Risk management:

Creation of a risk executive committee to identify, evaluate and manage risks

• Ethical behavior:

Important ethical behavior campaign, including virtual games with ethical dilemmas in Chile, Peru and Colombia

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2011 2012 2013 2015 2014 3Q16 0.87x 0.78x 0.89x 0.81x 1.15x 1.18x < 1.40x 2011 2012 2013 2015 2014 2016 3.84x 3.42x 3.89x 3.31x 3.33x 3.04x 2011 2011 2012 2012 2013 2013 2015 2015 2014 2014 3Q16 2016 0.41x 3.34x 0.43x 3.85x 0.59x 5.00x 0.47x 4.25x 0.76x 5.87x 0.72x 5.88x

Liabilities / Equity ebitda/financial expenses Net Financial Debt / Equity net financial debt/EBITDA

< 1.50x > 2.50x

CONSERVATIVE DEBT STRUCTURE AND OUTSTANDING FINANCIAL PERFORMANCE

Parque Arauco’s policy is to fjnance projects with 50% debt and 50% equity, and is comfortably within all its covenants

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DEC. 2014

Summary of debt by currency Liability amortization profile and duration2

116 25 35 106 168 94 9 22 196

25-36 months 13-24 months 0-3 months 49-60 months 7-12 months 11-20 years 37-48 months 4-6 months 6-10 years 21-35 years

95 23 138 88 300 158 6 74 186

25-36 months 13-24 months 0-3 months 49-60 months 7-12 months 11-20 years 37-48 months 4-6 months 6-10 years 21-35 years

128

5.0 years 1 6.7 years 1

DECEMBER 2014 (US$MM) DECEMBER 2016 (US$MM) IMPROVEMENT IN LOCAL DEBT RATING

Fitch: AA- Feller: AA- ICR:AA-

BBB- BBB BBB+ A- AA- A AA A+ AA+

Source: Parque Arauco (1) Average age (2) Does not include accrued interests and the exchange rate is at the close of December 31, 2016.

54%

UF

7% CLP 16% PEN 14% USD

CONSERVATIVE DEBT STRUCTURE AND OUTSTANDING FINANCIAL PERFORMANCE

During the last 24 months, the Company has improved its debt rating, eliminated debt in Dollars, and considerably increased the duration of its liabilities

9% COP

Summary of debt rates

96%

Fixed

4%

Variable

93%

Fixed

7%

Variable

DEC. 2016 DEC. 2014 DEC. 2016

68%

UF

5% CLP 16% PEN 11% COP

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ONSERVATIVE DEBT STRUCTURE AND OUTSTANDING FINANCIAL PERFORMANCE

The cost of debt has decreased importantly in the past 5 years

The cost of debt of Parque Arauco has decreased 160 points from 4.1% to 2.5% The spread five years ago had collateral agreements, while the current spread is unsecured with no collateral.

Date: 12-12-2014 Base: 1.66% Spread: 1.74% Duration: 14.3 Date: 04-17-2015 Base: 1.62% Spread: 1.68% Duration: 14.77

Source: Risk America

Date: 10-12-2016 Base: 1.46% Spread: 1.02% Duration: 12.71 Generic long-term bond issued by Parque Arauco in Chile

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IMPORTANT GROWTH OPPORTUNITIES

Parque Arauco has 0.9 million m2 and a 2% market participation in Latin American and a 8% market participation in the Andean Region.

MEXICO

GLA: 17.4 million m2 38% of total

ANDEAN REGION

GLA: 11.3 million m2 25% of total

ARGENTINA

GLA: 2.1 million m2 5% of total

BRAZIL

GLA: 14.7 million de m2 32% of total

Source: Prepared using information published by the International Council of Shopping Centers (ICSC)., and Parque Arauco analysis

LATIN AMERICA

GLA: 45.5 million m2 Indicator Total GLA (th) GLA Parque Arauco (th) Market Share Rank CHILE 3,600 424 12% #3 PERU 2,100 380 18% #2 COLOMBIA 5,600 143 3% #4

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IMPORTANT GROWTH OPPORTUNITIES

Parque Arauco participates in markets with a growing retail market

GDP Per Person vs. GLA per 1,000 inhabitants1

GLA per 1,000 habitants GLA per 1,000 habitants

Canada USA France Italy Spain Chile Chile Argentina Brazil Brazil Mexico Mexico Colombia Colombia South Africa South Africa

2,500 2,000 1,500 1,000 500

• 500

400 300 200 100

• 10,000

20,000 30,000 40,000

Peru Peru Portugal Portugal

GDP per person, PPP (log scale) GDP per person, PPP

Argentina

AT Kearney GRDI1 window of opportunity

Opening Peaking Maturing Closing

Chile Mexico Brasil Peru Colombia

5,000 50,000 (1) Global Retail Development Index (1) Source: International Council of Shopping Centers, World Bank

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IMPORTANT GROWTH OPPORTUNITIES

Parque Arauco’s growth has come from greenfjeld projects and M&A

Total GLA in 2006 194,745 55,651 83,708 24,595 91,625 27,676 80,242 132,858 37,400 90,000 947,000 Total GLA in 2007 Total GLA in 2010 Total GLA in 2014 Total GLA in 2008 Total GLA in 2011 Total GLA in 2015 Total GLA in 2009 Total GLA in 2013 Total GLA in 2012 New GLA in 2016

Greenfields 650,643 m2 M&A 296,357 m2

Greenfjeld M&A

69% 31% Total GLA 2016 128,500

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INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

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New Projects

Country Country Format Format

Estimated Opening Date Estimated Opening Date Total Investment in local currency1 Total Investment in local currency1 Total Investment USDMM2 Total Investment USDMM2 Owned GLA m2 Owned GLA m2

% Ownership % Ownership Total GLA m2 Total GLA m2

expansions

1) Projects in Chile in UF, in Peru in ThPEN and in Colombia in MCOP 2) Exchange rate as of December 31, 2016: 226,347.1 CLP/UF, 669.5 CLP/USD, 3,00.3 COP/USD, 3.4 PEN/USD. 2) In addition to the 11,000 m2, this expansion includes a 401 room Hilton by Hilton Hotel and largest hotel convention center in Santiago. Parque Angamos MegaPlaza Villa El Salvador II MegaPlaza Express Huaral Various Projects SCP Viamix Colonial Arauco Premium Outlet Bogotá Subtotal Chile Peru Peru Peru Peru Colombia Chile Colombia Chile Peru Peru Peru Chile Peru Peru Chile Chile Chile Peru Peru Peru Chile Peru Colombia 55% 50% 50% 100% 100% 100% 100% 100% 53% 100% 50% 50% 53% 50% N/A N/A 100% 53% 50% 100% 100% 100% 100% 100% 1H18 2H17 1Q17 2H18 1Q17 1H17 1Q17 4Q16 4Q16 4Q16 4Q16 2Q16 2Q16 2Q16 2Q16 2Q16 1Q16 1Q16 1Q16 1Q16 1Q16 2H21 2H17 2H17 886,000 36,000 38,000 180,000 25,000 78,000 1,520,000 672,000 320,000 9,500 53,000 38,000 319,000 47,000 28,600 2,137,500 309,000 115,000 9,000 76,000 53,500 5,355,000 39,500 17,500 Neighborhood Neighborhood Neighborhood Neighborhood Strip Center Outlet Regional Regional Strip Center Strip Center Regional Regional Strip Center Neighborhood N/A N/A Outlet Strip Center Regional Outlet Neighborhood Regional / Hotel Regional Hotel 6,050 5,500 8,250 19,500 3,000 13,000 55,300 30,000 64,00 3,160 1,500 4,750 3,750 2,370 7,250 4,620 N/A 6,000 1,843 1,250 8,500 14,000 149.372 11,000 N/A N/A 11,000 11,000 11,000 16,500 19,500 3,000 13,000 74,000 30,000 64,000 6,000 1,500 9,500 7,500 4,500 14,500 N/A N/A 6,000 3,500 2,500 8,500 14,000 173,000 11,000 N/A N/A 11,000 35 11 11 54 7 26 144 60 224 13 3 16 11 13 14 9 84 12 5 3 23 16 506 211 12 6 229

Total Remaining investment as of December 31, 2016

215,672 258,000 879 311

Parque Arauco Kennedy Expansion2 Renovación Parque Lambramani Hotel Bucaramanga Subtotal Mall Costa Pacífjco Parque La Colina Arauco Express Antofagasta Viamix Chorrillos Expansion MegaPlaza Norte Libertadores Expansion Megaplaza Norte Cine Conquistadores Expansion Arauco Express Ciudad Empresarial II MegaPlaza Express Jaen MegaPlaza Chimbote Minority Interest Inmobiliaria Viña del Mar Minority Interest Arauco Premium Outlet Coquimbo Arauco Express Recoleta MegaPlaza Chimbote Expansion InOutlet Premium Lurín Plaza Jesús María Subtotal

Parque Arauco has announced projects that will add 228,000 m2 of GLA over the next few years and will require an investment of US$ 819 million.

Future Developments 2016 and Onwards

Type

projects incorporated in 2016

Country Format

Oeening Date Total Investment in local currency1 Total Investment USDMM1 Owned GLA m2

% Ownership Total GLA m2 Type Type

Greenfjeld Greenfjeld Greenfjeld Greenfjeld Greenfjeld Greenfjeld Acquisition Greenfjeld Greenfjeld Expansion Expansion Expansion Greenfjeld Greenfjeld Minority Interest Minority Interest Greenfjeld Greenfjeld Expansion Greenfjeld Acquisition Expansion Renovation Expansion

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Parque La Colina was inaugurated in December 2016 Committed brands:

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We announced a new expansion of Parque Arauco Kennedy

Project Details:

Investment: 5,355,000 UF 5-star hotel: Hilton by Hilton Rooms: 401 Convention center: 3,000 m2 Parking spots: 700 Additional GLA: 11,000 m2

• The project will have the fjrst fjve star Hilton

hotel in Chile, a convention center, as well as the incorporation of new stores and more parking.

• The fjve star Hilton hotel will have 401 rooms,

two restaurants, three bars, two pools, a gym and an executive lounge. It will have the largest hotel convention center in the country, with the possibility of hosting over 2,800 people.

• The expansion will include a new fmagship

Falabella store with almost 25,000 m2 of GLA. This store will occupy the fjrst four fmoors of the expansion.

Hotel Operator:

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M2 % Ownership Total Cost (Local Currency)1 Total Cost (USD MM)

name

Quilicura Buenaventura Chicureo Los Andes Others in Chile Total Chile Parque El Golf - San Isidro Chimbote Talara Ica Chiclayo Others MegaPlaza Total Peru Neiva Valledupar Barranquilla Total Colombia Total 25,486 115,864 47,614 39,254 55,567 293,785 14,790 42,657 30,675 12,643 6,608 211,417 318,790 49,537 46,000 56,166 151,703 754,278 78,000 455,000 206,000 117,000 445,000 1,301,000 109,000 18,000 9,400 13,500 6,300 115,000 271,200 18,000 30,000 76,000 124,000 3 18 8 5 17 51 32 5 3 4 2 34 81 6 10 25 41 171 100% 100% 100% 100% 100% 100% 70% 100% 100% 100% 100% 50% 65% 100% 100% 100% 100% 86%

The company also has a valuable landbank which will serve as the base for future development.

Landbank

1) Landbank in Chile in UF, in Peru in ThPEN and in Colombia in MCOP

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Adjusted FFO Margin - AFFO / revenues AFFO -Adjusted Funds From Operations: Net Profjt - Depreciation & Amortization - Other Income/expenses - Share of Profjt (Loss)

• f Associates Accounted - Foreign Exchange Differences - Income

(Loss) for indexed assets and liabilities - Gains (losses) from the difference 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

• f 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

• utstanding

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 Green Field 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 GLA weighted by average occupancy for the period Monthly Sales/m2 -Monthly tenant sales divided by GLA weighted by average occupancy 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 of the city

• ffering 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 daily

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Glossary

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