Parque Arauco Day Colombia. October 2017

Transcription

1 Parque Arauco Day Colombia October 2017

2 2 Agenda Parque Arauco Corporate Overview Parque Arauco Colombia Overview Industry Managing Parque La Colina Organizational Improvements Mixed Use Rationale for Malls Parque Arboleda Overview

3 1Parque Arauco / / 1 Parque Arauco Corporate Overview October 2017 CONTACTS SARAH INMON (HEAD OF INVESTOR RELATIONS) EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) CLAUDIO CHAMORRO (CFO) TEL: (562) IR@PARAUCO.COM Corporate Overview- October 2017

4 / 2 Important 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 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 significant 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. 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 definitive agreement that may be executed. Parque Arauco Corporate Overview- October 2017

5 / 3 INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017

6 Parque Arauco at a glance / 4 Parque Arauco Parque Arauco is the third largest shopping center operator in Chile and Peru, and the fourth largest in Colombia. Indicator/ Country CHILE PERU COLOMBIA TOTAL Total GLA (m 2 ) 1 455, , , ,500 Owned GLA (m 2 ) 418, , , ,485 Revenues LTM 2Q17 (US$MM) # of operations SHAREHOLDER STRUCTURE (JUNE 2017) 1% 6% Others Local mutual funds 24% Foreign investment funds 22% Local brokers MARKET CAP 3 US$MM 2,263 26% Controlling Group 5% Said Yarur Family 3% Abumohor Family 13% Local pension funds DAILY TRADED VOLUME 2Q17: US$MM 2.9 OPERATIONAL METRICS BY COUNTRY 14.4% Chile Peru Colombia 46.0% OPERATIONAL METRICS BY FORMAT 78.9% 10. 7% 39.6% TOTAL TOTAL GLA 1 REVENUES 989,500 M 2 2 US$MM % 4.0% 60.6% Regional Neighborhood Outlet Strip center 85.6% 5.0% TOTAL TOTAL GLA 1 REVENUES 989,500 M 2 2 US$MM % 10.3% 6.7% 2.7% Parque Arauco Corporate Overview- October 2017 Source: Parque Arauco. (1) Does not include Marina Arauco nor Mall Center Curicó. (2) Revenues from July June Exchange Rate: US$= (3) Source: Bloomberg

7 In the last five years Parque Arauco has doubled GLA, revenues and EBITDA 1982 Parque Arauco Kennedy opens as first shopping center in Chile 1993 Arauco Maipu inaugurates in Santiago / 5 GLA (1) M 2 559, , x 728, , , , LTM 2Q 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 first 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$100 MM REVENUES (1) US$ MM x LTM 2Q17 Source: Parque Arauco. Exchange Rate: US$= (1) Does not include Marina Arauco nor Mall Center Curicó EBITDA (1) US$ MM x LTM 2Q Parque Arauco Corporate Overview- October 2017

8 The spread over the cost of capital of our last projects is approximately 3% / 6 9% 6% 3% REAL CAP RATE (1) REAL WACC (2) SPREAD OVER REAL WACC Source: Parque Arauco (1) Real cap rate 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. Parque Arauco Corporate Overview- October 2017 (2) Weighted Average Cost of Capital

9 7Parque Arauco 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 ANNUALIZED, LOCAL CURRENCY TOTAL RETURN 1, LAST 15 YEARS ANNUALIZED, LOCAL CURRENCY 14% Parque Arauco 12% S&P % Unibail 11% Klepierre 8% GGP 8% Iguatemi 7% Hammerson 7% Simon 7% Falabella 6% Macerich 4% Multiplan 4% IPSA 4% Fibra Uno -1% Taubman -1% Intu -6% -6% -7% Alliansce BR Malls Cencosud Parque Arauco Falabella IPSA Simon Taubman Klepierre S&P 500 Macerich GGP Hammerson Intu 4% 4% 2% -4% 7% 7% 11% 11% 9% 18% 18% Corporate Overview- October 2017 Source: Bloomberg (1) Total return includes dividends as of july 31, 2017.

10 Revenue type and contract duration / 8 FIXED VS VARIABLE RENTAL REVENUES AS OF JUNE 30, % Other Revenues 85% Rental Revenues CONTRACT LENGTH (BASED ON % OF REVENUES) 40% 100% 14% Variable Revenues 32% 14% 14% 86% Fixed Revenues Our rental revenues are derived primarily from fixed contracts and are protected against inflation 2 YEARS 2-3 YEARS 3-4 YEARS 4 YEARS TOTAL 40% of our contracts have a duration of more than 4 years and the average length is 6.0 years Parque Arauco Corporate Overview- October 2017

11 Purpose, Mission and Corporate Values / 9 CORPORATE PURPOSE OUR VALUES Our purpose is to create spaces that contribute to improving people s lives. MISSION Our mission is to be leaders in developing and operating real estate assets, through profitable and sustainable growth that generates value for our stakeholders PILLARS OF OUR CULTURE Happiness Excellence STRATEGIC OBJECTIVES Growth Profitability Sustainability Respect for people and the environment Choose the Right option, not the easiest one Create a work environment that inspires an exceptional Te a m Openness to change and innovation Make things happen Parque Arauco Corporate Overview- October 2017

12 / 10 INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017

13 Chilean Portfolio Colombia / 11 In Chile Parque Arauco has 7 regional shopping centers, 4 outlets and 14 strip centers. The average age of the portfolio is 16 years. Perú Chile GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of incorporation Parque Arauco Kennedy 112, % 112, % 1982 Arauco Maipú 74, % 74, % 1993 Arauco Chillán 32, % 32, % 2007 Arauco Estación 66,500 83% 55, % 2008 Arauco San Antonio 28,500 65% 18, % 2009 Arauco Express 1 33,000 53% 17, % 2012 Arauco Premium Outlets 2 47, % 47, % 2012 Arauco Quilicura 32, % 32, % 2013 Arauco Coronel 30, % 30, % 2017 Total Chile 455,500 92% 418, % Chile Parque Arauco Corporate Overview- October 2017 Source: Parque Arauco (1) Arauco Express has 14 Stripcenters in Chile: 11 strip centers in Santiago, 1 in Viña del Mar, 1 in Calama, and 1 in Antofagasta. (2) Arauco Premium Outlet has four outlets located in Santiago, Concepción, Coquimbo and Curauma.

14 Peruvian Portfolio Colombia / / In Peru in the company has 6 regional shopping centers and 9 neighborhood shopping centers, 2 outlets and 2 strip centers. The average age of the portfolio is 6 years. Perú Peru GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of incorporation MegaPlaza Norte 111,500 50% 55, % 2006 MegaPlaza Express Villa 8,000 50% 4, % 2009 Chorrillos Larcomar 26, % 26, % 2010 Parque Lambramani 29, % 29, % 2010 MegaPlaza Chimbote 28,000 50% 14, % 2012 MegaPlaza Express Villa El Salvador 9,500 50% 4, % 2012 MegaPlaza Express Chincha 9,000 50% 4, % 2013 InOutlet and Viamix (2) 23, % 23, % 2013 MegaPlaza Cañete 16,500 50% 8, % 2013 MegaPlaza Express Barranca 10,000 50% 5, % 2013 MegaPlaza Pisco 14,500 50% 7, % 2015 El Quinde Cajamarca 31, % 31, % 2015 El Quinde Ica 36, % 36, % 2015 Plaza Jesús María 14, % 14, % 2016 MegaPlaza Jaén 14,500 50% 7, % 2016 MegaPlaza Huaral 9,000 50% 4, % 2017 Total Peru 391,500 71% 276, % Chile Parque Arauco Corporate Overview- October 2017 Source: Parque Arauco (1) Only partner in peru is Grupo Wiese, which includes MegaPlaza formats (50%). (2) InOutlet and Viamix includes two premium outlets in Lima and two strip centers in Lima.

15 Colombian Portfolio Colombia / / Parque Arauco has 3 regional shopping centers in Colombia and the average age of the portfolio is 3 years Perú Colombia GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of incorporation Parque Arboleda 41,000 55% 22, % 2010 Parque Caracoli 38, % 38, % 2013 Parque La Colina 63, % 63, % 2016 Total Colombia 142,500 87% 124, % Chile Parque Arauco Corporate Overview- October 2017 Source:ParqueArauco

16 / 14 INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017

17 Portfolio 6. Important growth opportunities Our operations 1. Consistent results in a challenging macroeconomic environment / 15 Parque Arauco has 3 regional shopping centers in Colombia and the average age of the portfolio is 3 years 5. Conservative debt structure and outstanding financial performance Investment Highlights 2. Stable and diversified revenues 4. Solid corporate governance and increased concern with sustainability 3. Strong commercial relationships with local and global businesses Parque Arauco Corporate Overview- October 2017

18 Consistent results in a challenging macroeconomic environment / 16 Positive but weaker macroeconomic outlook and attractive industry dynamics Parque Arauco is positioned in countries with strong macroeconomic prospects GDP GROWTH RETAIL SALES GROWTH Chile Peru Colombia Chile Peru Colombia 2.3% 1.6% 1.7% 3.3% 3.9% 3.5% 3.1% 1.9% 2.3% 7.4% 6.0% 4.9% 8.2% 4.9% 7.6% 5.9% 7.1% 7.2% f f f POPULATION (MILLIONS) GDP PER CAPITA, PPP Chile Peru Colombia Chile Peru Colombia f f f Av. Latam: , , , f 12, , , f 13, , , f Av. Latam: 15,078 Parque Arauco Corporate Overview- October 2017 Source: GDP Growth, Population and GDP Per Capita: International Monetary Fund. Retail Sales: Euromonitor.

19 Consistent results in a challenging macroeconomic environment Results have been positive in all three countries / 17 Chile GLA 1 Tenant sales 1 Revenues 1 NOI 1,2 +8.3% +9.5% +8.5% +9.9% 420, , ,814 1,077,188 95, ,848 85,191 93,660 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q % +3.9% +7.6% +12.3% Peru 373, ,500 2,701,107 2,807, , , , ,714 Colombia LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q % +49.9% +69.9% +89.3% 79, , , ,027 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 42,681 72,532 30,886 58,468 Parque Arauco Corporate Overview- October 2017 (1) Chile in MMCLP, Peru in ThPEN and Colombia in MMCOP. (2) Not including overhead expenses (Corporate headquarters, regional Services Center, Chile Division, Peru Division and Colombia Division)

20 Consistent results in a challenging macroeconomic environment Consistent Same Store Growth and a Healthy Occupancy Cost / 18 CHILE SAME STORE SALES / CHG. % CHILE SAME STORE RENT / CHG. % CHILE OCCUPANCY COST % 10.2% 58% Others 42% Anchor Stores 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 2Q17 PERU SAME STORE SALES 1 / CHG. % PERU SAME STORE RENT 1 / CHG. % PERU OCCUPANCY COST % 7.5% Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 2Q17 COLOMBIA SAME STORE SALES 1 / CHG. % COLOMBIA SAME STORE RENT 1 / CHG. % COLOMBIA OCCUPANCY COST % 11.8% % Others 70% Others 59% Anchor Stores 30% Anchor Stores Parque Arauco Corporate Overview- October Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 2Q17 1) Peru s Same Store Sales and Same Store Rent in 4Q16 do not include Larcomar due to contingencies.

21 Stable and diversified revenues Parque Arauco diversifies its market risks at a country, format, and socio-economic level / 19 COUNTRY LEVEL DIVERSIFICATION (%REVENUES) FORMAT LEVEL DIVERSIFICATION (% REVENUES) Chile Peru Colombia Regional Neighborhood Outlet Strip center 10.3% 29.1% 5.0% 6.7%2.7% 60.6% 85.6% SOCIO-ECONOMIC LEVEL DIVERSIFICATION (% REVENUES) 50 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 Parque Arauco Corporate Overview- October 2017

22 Stable and diversified revenues With a 39% market share in Chile, Parque Arauco is the outlet market leader in the countries where we operate / 20 Outlets currently in our portfolio ARAUCO PREMIUM OUTLET BUENAVENTURA, CHILE ARAUCO PREMIUM OUTLET CONCEPCIÓN, CHILE ARAUCO PREMIUM OUTLET CURAUMA, CHILE INOUTLET FAUCETT, PERÚ INOUTLET PREMIUM OUTLET LURIN, PERÚ ARAUCO PREMIUM OUTLET CURAUMA, CHILE Keys to the Premium Outlet Format >> 1 >> Location Located near main cities 2 >> Brands Premium name-brands 3 >> Discounts More than 30% discount Parque Arauco Corporate Overview- October 2017

23 Strong commercial relationships with local and global brands Consolidated commercial relationships with well-known tenants / 21 Malls Country Total GLA (m 2 ) Years as a client Anchor Stores >> CHILE PERU COLOMBIA CHILE PERU CHILE PERU CHILE PERU Non Anchor Stores Source: Parque Arauco >> 4 CHILE PERU COLOMBIA CHILE COLOMBIA CHILE 12 PERU COLOMBIA CHILE COLOMBIA Parque Arauco Corporate Overview- October 2017

24 Strong commercial relationships with local and global brands Parque Arauco is supporting the globalization of several brands entering the Andean region / 22 NEW TENANTS PARQUE ARAUCO KENNEDY IN THE LAST 5 YEARS: NOMBRE GLA NOMBRE GLA FOREVER 21 1,639 ETIQUETA NEGRA 209 TOP SHOP 464 MICHAEL KORS 208 UNDER ARMOUR 445 RALPH LAUREN 207 LOUIS VUITTON 420 TORY BURCH 201 GUCCI 406 ERMENEGILDO ZEGNA 197 BANANA REPUBLIC 363 ENTEL 190 AMERICAN EAGLE 351 ARTE ISABEL ANINAT 161 AEROPOSTALE 342 VICTORIA S SECRET 129 DOLCE & GABBANA 316 ETAM 123 BURBERRY 276 MILK 117 EMPORIO ARMANI 247 CANELA HOME & DECOR 105 SALVATORE FERRAGAMO 241 METRO CUADRADO 114 TIFFANY & CO 219 JUSTICE 104 EL VOLCAN 218 BATH & BODY WORKS 103 BOLD 214 OCTOBER 102 OTHERS 3,020 TOTAL 14,956 INTERNATIONAL LOCAL >> 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 first store in Chile in Parque Arauco Kennedy during the last five years including Tiffany & Co., Dolce & Gabbana, Forever 21, Bath & Body Works, Tory Burch, Victoria s Secret, Omega, Versace Collection, Vince Camuto, and BCBG. Parque Arauco Corporate Overview- October 2017 Source: Parque Arauco

25 Solid corporate governance and increased concern with sustainability Parque Arauco has received important recognitions from local and international organizations / 23 Workplace Recognition Management Recognition Parque Arauco was recognized by Great Place to Work in Chile and Peru in Investor Relations Recognition Best Capital Markets Strategy: Andes in Sustainability Recognition Best Investor Relations Department for Mid-Size companies according to Santander and Revista Capital in 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. Parque Arauco Corporate Overview- October 2017 Source: Parque Arauco

26 Solid corporate governance and increased concern with sustainability In the last years we have continued advancing our sustainability strategy / Highlights Environmental Management 1.We established the baseline for energy, water, greenhouse gases (GHG) and residual consumption in Chile, Peru and Colombia. 2.We developed an environmental management model, which will be implemented in We continued sustainably building projects in Colombia (Parque La Colina) and Peru (InOutlet Premium Lurin). 4.We began a study to identify and prioritize climate change risks in some of our assets and projects. Social Management 5.We worked on designing a community relationship strategy and policy applicable to all of operations. 6.We approved and implemented a corporate donation policy. 7.More than 20 foundations or social organization had access to free space in our assets. 8.Our intellectual disability intern program had more than 40 participants. 9.We supported more than 340 small entrepreneurs, with more than 20 local and emerging entrepreneur fairs. Corporate Governance 10. We evaluated our corporate governance practices with an expert consultant in this matter. 11. We redefined our values, purpose, mision and long term strategy. 12.We strengthened our risk management team, which performed an exhaustive examination of this matter. 13.We initiated a diagnostic with international experts in safety and security standards in our assets. 14.We continued being one of the best places to work, according to the ranking Great Place to Work. Other Highlights 15.We adhere to the United Nations Global Compact. 16. We are the first Latin American Real Estate Company to enter into the Dow Jones Sustainability Emerging Markets Index. Parque Arauco Corporate Overview- October 2017 Source: Parque Arauco

27 Conservative debt structure and outstanding financial performance Parque Arauco's policy is to finance projects with 50% debt and 50% equity, and is comfortably within all its covenants / 25 LIABILITIES / EQUITY NET FINANCIAL DEBT / EQUITY 0.78x 0.89x 0.81x 1.14x 1.18x 1.16x < 1.40x < 1.50x 0.43x 0.59x 0.47x 0.76x 0.72x x 0.79x Q Q17 EBITDA/FINANCIAL EXPENSES NET FINANCIAL DEBT/EBITDA 3.42x 3.89x 3.37x 3.33x 3.04x 3.12x > 2.50x 3.85x 5.00x 4.25x 5.87x 5.88x 6.06x Parque Arauco Corporate Overview- October Q Q17

28 Conservative debt structure and outstanding financial performance The Company has a conservative debt structure / 26 JUNE 2014 IMPROVEMENT IN LOCAL DEBT RATING Fitch: AA- Feller: AA- ICR:AA- BBB- BBB BBB+ A- A A+ AA- AA AA+ SUMMARY OF DEBT BY CURRENCY 55% UF 9% COP SUMMARY OF DEBT RATES 12% CLP 21% Variable 79% JUNE 2014 Fixed 93% Fixed JUNE % CLP 66% UF 13% PEN 16% PEN 11% USD 10% COP DEC. JUNE % Variable LIABILITY AMORTIZATION PROFILE AND DURATION 1 June 2014 (US$MM) Average Duration: 4.1 Years months months months months June 2017 (US$MM) Average Duration: 7.0 Years 4-6 months months months months months months months months months months years years Source: Parque Arauco (1) Does not include accrued interests and the exchange rate is at the close of June 30, years years years years Parque Arauco Corporate Overview- October 2017

29 Conservative debt structure and outstanding financial performance The cost of debt has decreased importantly in the past 5 years / 27 Date: Base: 1.66% Spread: 1.74% Duration: 14.3 Date: Base: 1.62% Spread: 1.68% Duration: Date: Base: 1.46% Spread: 1.02% Duration: Generic long-term bond issued by Parque Arauco in Chile 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. Parque Arauco Corporate Overview- October 2017 Source: Risk America

30 / 28 Important growth opportunities Parque Arauco has 0.9 million m 2 and a 2% market participation in Latin American and a 8% market participation in the Andean Region. Mexico GLA: 17.4 million m 2 38% of total Brazil GLA: 14.7 million de m 2 32% of total Latin America GLA: 46.1 million m 2 Indicator CHILE PERU COLOMBIA Total GLA (th) 3,600 2,700 5,600 GLA Parque Arauco (th) Market Share 13% 14% 3% Rank #3 #3 #5 Andean Region GLA: 11.9 million m 2 25% of total Argentina Parque Arauco Corporate Overview- October 2017 Source: Prepared using information published by the International Council of Shopping Centers (ICSC)., Peruvian Shopping Center Council (ACCEP) and Parque Arauco analysis GLA: 2.1 million m 2 5% of total

31 Important growth opportunities Parque Arauco participates in markets with a growing retail market / 29 RETAIL SALES PER CAPITA AND GLA PER 1,000 INHABITANTS 1 2,500 16,000 GLA per 1,000 habitants 2,000 1,500 1, United States Canada Australia UK Chile Mexico Colombia Peru Brazil Argentina 12,000 8, Retail Sales Per Capita AT KEARNEY GRDI WINDOW OF OPPORTUNITY 2 OPENING PEAKING MATURING CLOSING Brazil Mexico Colombia Peru Chile GLA per 1,000 habitants Retail sales per capita RETAIL PRESENCE BY COUNTRY 3 (% OF GLOBAL BRANDS IN COUNTRY) 57.5% UK 51.5% United States 39.5% Mexico 21.0% Chile 20. 7% Brazil 11.7% 10.2% Argentina Venezuela 9.9% Peru Middle class is growing; consumers are willing to explores organized formats; government is relaxing restrictions Consumers seek organized formats and greater exposure to global brands; retail shopping districts are being developed; real estate is affordable and available Consumer spending has expanded significantly; desirable real estate is more difficult to secure; local competition has become more sofisticated Consumes are more used to modern retail; discretionary spending is higher; competition is fierce both from local and foreign retailers; real estate is expensive and not readily available Parque Arauco Corporate Overview- October 2017 (1) Source: International Council of Shopping Centers, World Bank, Parque Arauco analysis (2) Source: AT Kearney Global Retail Development Index 2016 (3) Source: CBRE- How Global is the business of retail?. This report did not include Colombia.

32 Important growth opportunities Parque Arauco's growth has come from greenfield projects and M&A / 30 44, , ,500 90,000 91, , , ,858 37,400 67% Greenfields 663,143 m 2 83,708 24, ,745 Total GLA in ,651 Total GLA in 2007 Total GLA in 2008 Total GLA in 2009 Total GLA in 2010 Total GLA in 2011 Total GLA in 2012 Total GLA in 2013 Total GLA in 2014 Total GLA in 2015 New GLA in 2016 New GLA in % Total GLA 2Q2017 M&A 326,357 m 2 Parque Arauco Corporate Overview- October 2017 Greenfield M&A Source: Parque Arauco

33 / 31 INTRODUCTION OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017

34 Future Developments 2017 and onwards / 32 New Projects Type Country Format Estimated Opening Date Total GLA m 2 % ownership Owned GLA m 2 Total Investment Local Currency Parque Angamos Development Chile Neighborhood 2H18 11,000 55% 6, , MegaPlaza Villa El Salvador II Development Peru Neighborhood 2H17 11,000 50% 5,500 36, Various Projects SCP Development Peru Neighborhood 2H18 19, % 19, , Viamix Colonial Development Peru Strip Center 2H17 3, % 3,000 25,000 8 Arauco Premium Outlet Bogota Development Colombia Outlet 2H17 13, % 13,000 78, Subtotal 57,500 47, Total Investment USDMM Expansions Type Country Format Estimated Opening Date Total GLA m 2 % ownership Owned GLA m 2 Total Investment Local Currency Parque Arauco Kennedy Expansion 2 Expansion Chile Regional / Hotel 2H21 11, % 11,000 5,355, Parque Lambramani Renovation Renovation Peru Regional 3Q17 N/A 100% N/A 22,500 7 El Quinde Cajamarca Expansion Expansion Peru Regional 1H18 2, % 2,500 40, Hotel Bucaramanga Expansion Colombia Hotel 3Q17 N/A 100% N/A 17,500 6 Subtotal 13,500 13, Total Investment USDMM Projects Incorporated in 2017 Type Country Format Estimated Opening Date Total GLA m 2 % ownership Owned GLA m 2 Total Investment Local Currency Arauco Coronel Acquisition Chile Regional 1Q17 30, % 30,000 1,520, MegaPlaza Express Huaral Development Peru Neighborhood 1Q17 9,000 50% 4,500 46, Subtotal 39,000 34, New Landbank 11 Total 110,000 95, Total Investment USDMM Parque Arauco Corporate Overview- October 2017 Remaining to Invest 274 1) Projects in Chile in UF, in Peru in ThPEN and in Colombia in MCOP 2) Exchange rate as of June 30, 2017: 26,665 CLP/UF, CLP/USD, 3,045 COP/USD, 3.3 PEN/USD. 2) In addition to the 11,000 m 2, this expansion includes a 401 room Hilton by Hilton Hotel and largest hotel convention center in Santiago.

35 / 33 Parque La Colina was inaugurated in December 2016 OPENING DATE: The shopping center opened on December 6, COMMERCIALIZATION STATE: 88.1% of the GLA is open. H&M opened on May 6, BRANDS: Parque Arauco Corporate Overview- October 2017

36 We announced a new expansion of Parque Arauco Kennedy / 34 HOTEL OPERATOR: PROJECT DETAILS: Investment: 5,355,000 UF 5-star hotel: Hilton by Hilton Rooms: 401 Convention center: 3,000 m 2 Parking spots: 700 Additional GLA: 11,000 m 2 - The project will have the first five star Hilton Hotel in Chile, a convention center, as well as the incorporation of new stores and more parking. - The five 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 flagship Falabella store with almost 25,000 m 2 of GLA. This store will occupy the first four floors of the Parque Arauco Corporate Overview- October 2017

37 / 35 Landbank Name m 2 % Ownership Total Cost (local currency) Total Cost (USD MM) Quilicura 25, % 78,000 3 Buenaventura 115, % 455, Chicureo 47, % 206,000 8 Los Andes 39, % 117,000 5 Others in Chile 67,550 92% 522, Total Chile 295,768 98% 1,378, Parque El Golf - San Isidro 16,350 68% 127, Chimbote 42, % 18,000 6 Talara 30, % 9,400 3 Ica 12, % 13,500 4 Chiclayo 6, % 6,300 2 Pomalca Chiclayo 45, % 6,565 2 Lambayeque- MegaPlaza 25,260 50% 18,900 6 San Juan de Lurigancho- MegaPlaza 80,000 50% 10,415 3 Others MegaPlaza 106,157 50% 85, Total Peru 365,393 70% 296, Neiva 49, % 18,000 6 Valledupar 46, % 30, Barranquilla 56, % 76, Total Colombia 151, % 124, Total 812,864 86% 189 Parque Arauco Corporate Overview- October ) Landbank in Chile in UF, in Peru in ThPEN and in Colombia in MCOP 2) Exchange rate as of June 30, 2017: 26,665 CLP/UF, CLP/USD, 3,045 COP/USD, 3.3 PEN/USD.

38 / 36 Glossary»Adjusted FFO Margin - AFFO / revenues»affo -Adjusted Funds From Operations: Net Profit - Depreciation & Amortization - Other Income/expenses - Share of Profit (Loss) of 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 financial 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 Profit - Depreciation & Amortization - Share of Profit (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/m 2 -Monthly revenues divided by the occupied GLA for the period»monthly Sales/m 2 -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 m 2» Net income margin -Net profit / 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 -Greenfield and expansion projects under development»premium Outlet - Shopping center located outside of the city offering name brand clothing and goods for a reduced price»regional Mall - A shopping mall with a GLA over 20,000 m 2.»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 m 2 Tenant Sales Tenant sales of the consolidated assets»uf -Unidad de Fomento: A chilean currency unit indexed according to inflation on a daily basis. Parque Arauco Corporate Overview- October 2017

39

40 Parque Arauco Colombia October 2017

41 Agenda I. Introduction to Colombia II. Parque Arauco Colombia Versión :30 [2]

42 Agenda I. Introduction to Colombia II. Parque Arauco Colombia [3]

43 4 Colombia has one of the largest GDPs in the region COLOMBIA HAS A LARGE GDP FOR REGIONAL STANDARDS US$ Billion, 2017 (F) (PPP) AND A RELATIVELY SMALL PER CAPITA GDP US$, 2017 (F) (PPP) Brazil Chile Mexico Argentina Argentina 961 Mexico Colombia 770 Brazil Chile 478 Colombia Peru 462 Peru Venezuela 454 Venezuela Ecuador 184 Ecuador Source: World Economic Outlook, October 2016, International Monetary Fund (IMF)

44 5 Colombia will continue to have a leading growth in the region COLOMBIA HAS STRONG GROWTH GOING FORWARD Read GDP% Change, Average COLOMBIA GDP GROWTH EXPECTATION Real GDP% Change Forecase Peru 3,7 3,6 3,6 3,6 Colombia 3,2 3,0 Argentina 2,6 2,3 Chile 2,5 Mexico 2,4 Brazil 1,6 Ecuador 0, Source:, World Economic Outlook, April, 2017, International Monetary Fund (IMF)

45 Colombia has a diversified economy GDP BREAKDOWN BY ECONOMIC ACTIVITY Social and personal services 17,1% 13,5% Commerce 12,4% Manufacturing Financial intermediation 23,1% 8,2% Construction 3,8% 6,7% Electricity, gas and water Agriculture 7,1% 7,9% Mining Transport and communications Source: Colombian Central Bank

46 diversified exports and imports 7 TOP 2016 EXPORTS (% OF TOTAL) TOP 2016 IMPORTS BY USE (% OF TOTAL) Coffee Transportation Non-durable goods Industrial 28,5% 7,7% 14,8% Carbon Industrial 18,9% 7,8% 13,3% Durable Goods 11,2% 5,8% Mining 8,9% Farming 1,0% Ferronickel Construction 3,1% 33,2% Petroleum and derivtives 32,9% Industrial (Raw material) 8,5% Combustibles 3,9% Farming Source: Central Bank of Colombia

47 There are 5 cities in Colombia with over 1,000,000 people 8 City Population 1. Bogotá 8,000, Medellín 2,500, Calí 2,400, Barranquilla 1,200, Cartagena 1,000, Cúcuta 650, Soledad 600, Ibagué 550, Soacha 525, Bucaramanga 500, Villavicencio 500, Santa Marta 490, Pereira 470,000+ Cartagena Barranquilla Soledad Cúcuta Medellín Bucaramanga Soacha Pereira Bogotá Calí Ibagué Source: DANE

48 9 Macroeconomic indicators are sending mixed signals CHALLENGING CONSUMER CONFIDENCE Consumer confidence levels (DANE) STABLE UNEMPLOYMENT RATES Unemployment rates(dane) 40 11, , ,0 9,5 9, , DECREASING INFLATION Inflation % (DANE) DECREASING LONG TERM RATES Colombia generic 10 year bond (Bloomberg)

49 Some consumption indicators are improving 10 DECREASING POVERTY RATES Poverty headcount (% of population) 42% 40% 37% 34% 33% 31% 29% 28% IMPROVED BANKING PENETRATION %Population with at least one financial product 71,5% 72,5% 75,0% 62,2% 64,9% 67,2% A STEADY POPULATION GROWTH Population growth % 1,2% 1,1% 1,1% 1,1% 1,0% 1,0% 0,9% 0,9% GROWING URBAN POPULATION Urban population growth % 1,6% 1,5% 1,5% 1,4% 1,4% 1,3% 1,3% 1,3% Source: World Bank for poverty rates, population growth rates and Asobancaria for banking penetration.

50 improving institutional frameworks 11 EASE OF DOING BUSINESS RANK (2016) CHILE PERÚ Mexico 47 Colombia 53 Peru 54 Chile 57 Argentina 116 Brazil 123 WEF GLOBAL COMPETITIVENESS RANK (2016) Chile 33 Mexico 51 Colombia 61 Peru 67 Brazil 81 Argentina 104 WEF GLOBAL COMPETITIVENESS DETAIL FOR COLOMBIA Score 1 (low) to 7 (high) Market size Innovation Business sophistication Technological readiness Financial Institutions Labor market efficiency Infrastructure Macroeconom Health and Higher Goods market efficiency COLOMBIA Source: Ease of Business, World Economic Forum

51 12 Shopping center sales have outpaced sector dynamics in Colombia FINAL CONSUMPTION (COLOMBIAN CENTRAL BANK) (THUSD) RETAIL SALES (EUROMONITOR) (THUSD) ,9% ,1% SHOPPING CENTER SALES (RADDAR/ ACE COLOMBIA) (THUSD) RETAIL AND MALL SALES AS % OF TOTAL FINAL CONSUMPTION 6,1% 6,9% 7,3% 7,3% 8,0% 8,7% ,6% 33,3% 32,8% 32,3% 33,0% 33,6% 35,0% ,6% 60,3% 60,4% 59,8% 58,4% 56,3% Source: Colombian Central Bank, Euromonitor, Raddar, ACE Colombia Mall Retail (ex mall) Others

52 13 Distribution of Colombian spend HOW 100 COLOMBIAN PESOS ARE SPENT IN A SHOPPING CENTER 39,0% 38,4% 28,6% 27,7% ,6% 7,5% 6,5% 7,3% 6,6% 7,2% 4,5% 5,2% 3,6% 3,7% 2,6% 3,0% 0,0% 0,1% Anchor stores Source: Raddar Clothing and shoes Others Eating outside of the home EntertainmentTransport. & culture & Comm. Health Housing Education

53 Colombian elections 14 Presidential elections take place in May 2018 Latest Datexco voting intention survey results: WHO WOULD YOU VOTE FOR IFTHE ELECTIONS WERE TOMORROW? WHICH CANDIDATE WOULD YOU NEVER VOTE FOR? 16,5% 12,1% 7,6% 5,9% 4,1% 11,2% 20,1% 18,6% 13,7% 13,1% 4,3% 3,3% 2,6% 2,4% Germán Vargas Lleras Sergio Fajardo Gustavo Petro Clara Lopez Juan Manuel Galan know No Response Piedad Córdoba Germán Vargas Lleras Gustavo Petro Francisco Santos Alejandro Ordoñez Roy Barreras Simón Gaviria 52,9% 41,0% WHAT ARE THE THREE PROBLEMS THE NEXT PRESIDENT SHOULD SOLVE? 39,4% 20,0% 15,4% 12,8% 11,6% 11,5% 10,1% 9,8% Source: Datexco Health Education quality Unemploy. Safety Economy Political corruption Educational coverage National safety Common crimes Health coverage

54 Peace agreement 15 The agreement is to end the civil war with the FARC and create a stable and during peace for Colombia. The agreements are summarized as: 1. A new Colombian countryside: Comprehensive rural reform 2. Political participation: A democratic opportunity to build peace 3. End of the conflict: Agreement on the bilateral and definitive ceasefire and cessation of hostilities and laying down of arms 4. Solution to the problems of illicit drugs 5. Agreement regarding the victims of the conflict: Comprehensive system from truth, justice, reparation and nonrepetition 6. Implementation and verification mechanisms Source: Colombia Peace Organization

55 Agenda I. Introduction to Colombia II. Parque Arauco Colombia [16]

56 History of Parque Arauco in Colombia 17 Agreement signed with Merheg s family to develop Parque Arboleda CHILE Agreement signed with Bancolombia Purchase of Bucaramanga land Parque Arboleda opens in Pereira Purchase of Valledupar land Parque La Colina opens in Bogotá PERÚ Parque Arauco opens office in Colombia Purchase of La Colina land Purchase of Barranquilla land Parque Caracolí opens in Bucaramanga Purchase of minority stake COLOMBIA Source: Parque Arauco

57 Legal Structure 18 PARQUE ARAUCO S.A. 99, % PARQUE ARAUCO INTERNACIONAL S.A. 100% 100% INVERSIONES COLOMBIANAS ARAUCO S.A.S. INVERSIONES INMOBILIARIAS ARAUCO ALAMEDA S.A.S. 100% 100% 48, % INVERSIONES INMOBILIARIAS BUCARAMANGA ARAUCO S.A.S INMOBILIARIA LA COLINA ARAUCO S.A.S 6, % EJE CONSTRUCCIONES S.A.S Source: Parque Arauco

58 Organizational chart 19 Country Manager Juan Pablo Romero Gerencia Legal Subgerencia de Personas Gerencia Inmobiliaria Gerencia Comercial Gerencia de Administración y Finanzas Gerencia de Centros Comerciales Source: Parque Arauco

59 20 Parque Arauco has three shopping centers in Colombia CHILE Colombia GLA (m2) % Ownership PERÚ Owned GLA (m2) Occupancy Year of incorporation Parque Arboleda 41,000 55% 22, % 2010 Parque Caracoli 38, % 38, % 2013 Parque La Colina 63, % 63, % 2016 Total Colombia 142,500 87% 124, % Pereira Bucaramanga Bogotá COLOMBIA Source: Parque Arauco

60 Parque Arboleda - Pereira 21 PARQUE ARBOLEDA Opening: 2010 Location: Cra. 14 #5-20, Pereira Anchor: Falabella Type of mall: Regional Total GLA: 41,000 m² Owner: Parque Arauco (55%) and Merheg s family (45%) Pereira KEY METRICS GLA (M2) AND OCCUPANCY (%) TENANTS SALES (MMCOP) REVENUES WITHOUT OVERHEAD (MMCOP) NOI WITHOUT OVERHEAD (MMCOP) 92,9% 94,6% 95,6% 95,3% ,3% +3,8% +15,9% +9,2% ,0% ,4% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 Source: Parque Arauco LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17

61 Parque Caracolí - Bucaramanga 22 PARQUE CARACOLÍ Opening: 2013 Location: Carrera 27 # Bucaramanga Anchor: Falabella Type of mall: Regional Total GLA: 38,500 m² Owner: Parque Arauco (100%) Bucaramanga KEY METRICS GLA (M2) AND OCCUPANCY (%) 100,0% TENANTS SALES (MMCOP) REVENUES WITHOUT OVERHEAD (MMCOP) NOI WITHOUT OVERHEAD (MMCOP) 88,4% 87,3% ,8% ,5% ,5% ,6% -0,3% ,2% ,5% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 Source: Parque Arauco

62 Parque La Colina - Bogotá 23 PARQUE LA COLINA Opening: 2016 Location: Cra. 58d #146-51, Bogotá Anchor: Falabella Type of mall: Regional Total GLA: 63,000 m² Owner: Parque Arauco (100%) Bogotá KEY METRICS GLA (M2) AND OCCUPANCY (%) SALES / M2 (MMCOP) REVENUES / M2 WITHOUT OVERHEAD (MMCOP) NOI MARGIN 77,7% 88,1% 90,0% ,9% 90,8% Q17 2Q E 1Q17 2Q17 1Q17 2Q17 1Q17 2Q17 Source: Parque Arauco

63 24 Revenue type and contract duration FIXED VS VARIABLE RENTAL REVENUES COLOMBIA As of June 30, 2017 Other Revenues 16% CONTRACT LENGTH IN COLOMBIA Based on % of revenues % Rental Revenues Variable Revenues 3% < 2 years 2-3 years 3-4 years >4 years 97% Fixed Revenues Source: Parque Arauco

64 25 Parque GLA in Colombia has tripled since 2010 Total GLA CHILE +331,8% Parque La Colina Parque Caracolí Parque Arboleda PERÚ COLOMBIA Source: Parque Arauco

65 The owned GLA has increased over 12x 26 We increased our ownership when we purchased in 2015 minority participation CHILE PERÚ Own GLA ,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 Parque La Colina Parque Caracolí Parque Arboleda Ownership % 0 COLOMBIA ,0

66 The GLA of Parque Arauco Colombia has increased fourfold in the last five years 27 GLA (M²) TENANT SALES (MUSD) ,8% +80,4% 346% +68,1% LTM LTM 2Q16 2Q2017 REVENUES (MUSD) 1, NOI¹ (MMCOP) 2016 LTM 2Q16 LTM 2Q17 544% +69,9% 568% +89,3% LTM LTM 2Q16 2Q17 (1) Not including overhead expenses (Corporate headquarters, regional Services Center and Colombia Division) (2) 1 USD= 2, COP Source: Parque Arauco LTM 2Q16 LTM 2Q17

67 The company has stable management indicators in Colombia 28 OCCUPANCY (%) SAME STORE SALES (CHG. %) 89% 90% 90% 90% 93% 93% 92% 92% 90% 85% 8,6% 11,5% 4,5% 5,3% 1,6% 2,0% 0,9% 0,2% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1Q15-0,5% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16-1,1% 1Q17 2Q17 OCCUPANCY COST (%) SAME STORE RENT (CHG. %) 14% 13% 12% 12% 10% 12% 12% 9% 15% 14% 12,5% 11,2% 8,4% 5,5% 5,3% 5,5% 7,6% 1,1% 1,5% -0,9% 1Q15 2Q15 3Q15 Source: Parque Arauco 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

68 Diversified assets and revenues 29 ASSET LEVEL DIVERSIFICATION (º/º REVENUES 2017E) Parque Arboleda 22% REVENUE TYPE DIVERSIFICATION (º/º REVENUES) Parking Revenues Other Revenues 2% Variable Revenues 12% 3% Parque Caracoli 19% 58% Parque La Colina 84% Fixed Revenues SOCIO-ECONOMIC LEVEL DIVERSIFICATION (º/º REVENUES) Medium to High Income: 6 and 5 in Colombia Medium Income: 4 and 3 in Colombia Medium to Low Income: 2 and 1 in Colombia Total Source: Parque Arauco. Based on socio-economic composition of community in which malls are located.

69 Future growth will come from pipeline and landbank 30 NEW PROJECTS Project Type Format Estimated opening date Arauco Premium Outlet Bogotá Hotel Bucaramanga Total GLA m2 % ownership Owned GLA m2 Total investment local currency Total investment USDMM Develop. Outlet 2H17 13, % 13,000 78, Expansion Hotel 3Q17 N/A 100% N/A 17,500 6 Total 13, % 13,000 95, LANDBANK Name M2 % ownership Total cost (local currency) Total Cost (USDMM) Neiva 49, % 18,000 6 Valledupar 46, % 30, Barranquilla 56, % 76, Total Colombia 151, % 124, Source: Parque Arauco

70 Project Arauco Premium Outlet Bogotá - Bogotá 31 CHILE ARAUCO PREMIUM OUTLET BOGOTÁ Opening: 2H2017 Location: Sopó, Bogotá Type of mall: Outlet Total GLA: 13,000 m² Total Investment: US$ 26 millones Owner: Parque Arauco (100%) Commercial %: 25% of contracts signed, 50% in negotiation Bogotá PERÚ COLOMBIA Source: Parque Arauco

71 Brands signed in Arauco Premium Outlet Bogotá 32

72 Bucaramanga Hotel Project 33 PARQUE CARACOLÍ Bucaramanga CHILE Opening: 3Q2017 Location: Bucaramanga Type of project: Hotel N of rooms: 104 Hotel Brand: Sonesta Total Investment: US$ 6 millones Owner: Parque Arauco (100%) PERÚ COLOMBIA Source: Parque Arauco

73 Bucaramanga Hotel 34 Source: Parque Arauco

74 Landbank 35 Barranquilla Name: Barranquilla M2: 56,166 % Ownership: 100% Total Cost: 26 (MMUS$) Valledupar Name: Valledupar M2: 46,000 % Ownership: 100% Total Cost: 10 (MMUS$) Name: Neiva M2: 49,537 % Ownership: 100% Total Cost: 6 (MMUS$) Neiva Source: Parque Arauco

75 [36]

76 Colombia s Shopping Center Industry October 2017

77 Agenda I. Competitive landscape II. III. IV. Sector dynamics Rental vs. condominium ecommerce in Colombia V. Globalization of Brands [2]

78 Agenda I. Competitive landscape II. III. IV. Sector dynamics Rental vs. condominium ecommerce in Colombia V. Globalization of Brands [3]

79 Parque Arauco has almost one million m², a 2% market participation in Latin America and a 8% market participation in the Andean Region #5

80 Parque Arauco is the fifth largest operator in Colombia with a 3% market participation 5 MARKET SHARE IN COLOMBIA TOP 7 MARKET SHARE BY GLA 5,0% 3,3% 3,2% 2,8% 2,8% 1,3% 1,8% Inmobiliaria Éxito (11 assets) Unico Outlet (7 assets) Terranum (4 assets) ,8% As Construcciones (5 assets) Parque Arauco (3 assets) Inmobiliaria Éxito Unico Outlet Terranum As Construcciones Parque Arauco Almacenes La 14 Pactia Others Almacenes La (1 assets) Pactia (5 assets) Source: ACE Colombia, Parque Arauco analysis

81 Parque Arauco has improved its market share in a fragmented market 6 HISTORICAL MARKET SHARE 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0, Inmobiliaria Éxito Terranum As Construcciones Unico Outlet Parque Arauco Almacenes La 14 Pactia Source: ACE Colombia, Parque Arauco analysis

82 7 In Colombia market share is diversified by type of mall NUMBER OF SHOPPING MALLS BY SIZE GLA BY TYPE OF MALL 14,5% 29,8% 36,7% 57,9% Total # of shopping malls: ,6% Total m 2 : 4,942,791 33,5% Large (>40,000) Medium ( 20,000-39,999) Small (5,000-19,999) Source: ACE Colombia

83 Colombia has international developers 8 Brand Owner Parque Arauco Falabella Spectrum Grupo Roble Country Chile Chile Guatemala El Salvador Assets Projects Parque Arboleda (Pereira) Parque Caracolí (Bucaramanga) Parque La Colina (Bogotá) Arauco Premium Outlet Bogotá El Castillo (Cartagena) Manizales Barranquilla Calí Fontanar (Bogotá) Medellín GLA (m 2 )¹ 142,500 40,000 57,000 65,000 MultiPlaza (Bogotá) (1) Rental Model GLA Source: ACE Colombia

84 well as strong local developers (part 1 of 2) 9 Brand Owner Éxito Único Terranum (Estrategias Corporativas / Santo Domingo Family) Assets Projects Viva Laurales Viva Barranquilla Viva Villavicencio Viva Sincelejo Viva La Ceja Viva Wajira Viva Las Palmas Viva Fontibón Viva Buenaventura Viva Caucasia Viva Barrancabermeja Viva Envigado Viva Tunja Unico Cali Unico Dos Quebradas Unico Barranquilla Unico Pasto Unico Villavicencio Unico Yumbo Unico Neiva Plaza Central (Bogotá) Jardín Plaza (Calí) Atlantis Plaza (Bogotá) Ideo Medellín Ideo Cali GLA (m 2 )¹ 255, , ,000 (1) Rental Model GLA Source: ACE Colombia

85 well as strong local developers (part 2 of 2) 10 Brand Owner As Construcciones Almacenes La 14 Pactia (Conconcreto / Grupo Argos) Assets Projects Buenavista Barranquilla Buenavista Monteria Buenavista Santa Marta Panorama (Barranquilla) Americano (Barranquilla) Calima Bogotá GLA (m 2 )¹ 145,000 93,000 64,000 Gran Plaza Soledad Gran Plaza Pitalito Gran Plaza Florencia Gran Plaza Ipiales Gran Plaza Antares Gran Plaza Alcaraván Gran Plaza San Antonio Gran Plaza del Sol San Pedro Plaza (Neiva) Guatapurí Plaza (Valledupar) Gran Plaza Bosa Gran Plaza El Ensueño (1) Rental Model GLA Source: ACE Colombia

86 Agenda I. Competitive landscape II. III. IV. Sector dynamics Rental vs. condominium ecommerce in Colombia V. Globalization of Brands [11]

87 GLA in Colombia has been growing on average at 7% in the last 5 years 12 EVOLUTION OF GLA IN COLOMBIA (TH M 2 ) NUMBERS OF SHOPPING CENTERS IN COLOMBIA (#) % +7% % % ANNUAL VARIATION OF GLA (M 2 ) ANNUAL GROWTH RATE (% CHANGE) % 10% 3% 11% 5% 6% 12% 5% 4% 8% Source: ACE Colombia

88 Shopping center sales have outpaced retail sales in Colombia 13 RETAIL SALES (EUROMONITOR) (THUSD) SHOPPING CENTER SALES (RADDAR/ACE COLOMBIA) (THUSD) ,1% ,6% RETAIL SALES GROWTH (% CHANGE) SHOPPING CENTER SALES GROWTH (% CHANGE) 16,9% 19,8% 18,9% 5,6% 4,6% 5,9% 7,1% 7,2% 11,5% 3,6% 13,9% 10,8% Source: ACE Colombia / Raddar- Shopping Centerr Sales, Euromonitor- Retail Sales

89 Rental model malls are gaining market share in Colombia 14 % OF GLA BY PROPERTY TYPE IN COLOMBIA Rental Model Mixed Model Condominium Rental 553, , , ,887 1,007,585 1,145,744 1,469,668 Mixed 434, , , , , , ,834 Condo. 2,964,218 2,997,357 2,982,415 3,260,016 3,375,411 3,385,153 3,448,067 Total 3,952,290 4,147,028 4,322,340 4,794,141 5,037,927 5,207,927 5,652,569 Source: ACE Colombia

90 15 New malls opening are predominately rental model % NEW GLA IN COLOMBIA BY PROPERTY TYPE (% OF TOTAL GLA) 60,6% Rental Model Mixed Model Condominium 33,4% 6,0% New development GLA Source: ACE Colombia

91 Agenda I. Competitive landscape II. III. IV. Sector dynamics Rental vs. condominium ecommerce in Colombia V. Globalization of Brands [16]

92 Colombian shopping center industry is unique 17 Owner Financing Condominium Malls Several owners buy stores; most of them are retailers, some of them are investors that sublease the store Construction is financed by pre-selling stores Rental Model Malls Single owner lease stores Construction is financed by issuing debt Construction quality Layout Commercial Mix Operational standard Capex Source: Parque Arauco Sometimes construction materials and equipment are acquired thinking about short term Sometimes layout is not optimum since construction companies minimize common areas in order to maximize area to be sold Sometimes commercial mix is not optimum since it is defined by maximizing money collected in selling process Sometimes operational standard (i.e. marketing efforts, cleaning and security, window display standard, etc.) is lower Sometimes agreeing on capex between 200 tenants can be challenging because of Free Riders Construction materials and equipment are acquired thinking about long term Layout is defined by single owner that think about the customer experience afterwards Commercial mix is defined by criteria of maximizing long term sales and revenues and tends to be optimum Operational standard (i.e. marketing efforts, cleaning and security, window display standard, etc.) is higher Single owner define capex (growth and/or maintenance capex) thinking about the long term

93 18 Case Study Pereira: Rental Sales vs. Condominium Sales PEREIRA MALL SALES (USDMM) Parque Arboleda Condo. Mall 1 Condo. Mall 2 Condo. Mall 3 Source: Raddar / Parque Arauco

94 Agenda I. Competitive landscape II. III. IV. Sector dynamics Rental vs. condominium ecommerce in Colombia V. Globalization of Brands [19]

95 Colombia has one of the lowest ecommerce penetrations in the region 20 INTERNET RETAIL AS % OF TOTAL RETAIL IN ,9% 10,5% 4,7% 4,0% 2,6% 2,5% 1,6% 1,1% United Kingdom United States Argentina Brazil Mexico Chile Colombia Peru Source: ICSC, Euromonitor

96 Retail Sales in Colombia have grown 6% in the last 5 years 21 % Retail Sales growth % Online Sales growth Online Sales (US$ billion) Retail Sales (US$ billion) +3,6% +6,3% 90 CHILE PERÚ ,8% 49,9 0,2 16,9% 54,8% 52,8 0,3 5,6% 55,3 0,5 41,5% 4,6% 58,7 0,7 44,2% 5,9% 63,1 0,9 31,9% 7,1% 67,7 1,1 21,9% 7,2% 70,0 1,3 23,3% 3,0% 72,5 1,6 23,4% 3,2% 75,2 2,0 22,5% 3,2% 78,0 2,4 21,9% 3,3% 81,0 3,0 20,8% 3,2% COLOMBIA E 2017E 2018E 2019E 2020E 2021E 0 Source: Internet Retailing in Colombia, Euromonitor

97 Retail ecommerce concentration in Colombia is low 22 RETAIL SALES IN COLOMBIA E 2021E Online Retail 0,4% Online Retail 1,6% Online Retail 3,6% 99,6% Retail 98,4% Retail 96,4% Retail Source: Internet Retailing in Colombia, Euromonitor

98 Agenda I. Competitive landscape II. III. IV. Sector dynamics Rental vs. condominium ecommerce in Colombia V. Globalization of Brands [23]

99 USA UK Canada Mexico Brazil Argentina Chile Peru Colombia Colombia is still an underpenetrated market by global retailers 24 % OF TOP 100 LARGEST GLOBAL RETAILERS IN COUNTRY GLOBAL RETAILERS PRESENT IN COLOMBIA 46% 32% 27% 19% 14% 10% 9% 8% 8% Source: Parque Arauco analysis Powers of Retailing by Deloitte

100 La Colina has a higher penetration of global brands than its competitors in Bogotá 25 PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES) 50 48% International Brand % Parque La Colina direct competitor % 30% 28% 25 23% % 12% 5 0 Parque La Colina Mall 1 Mall 2 Mall 3 Mall 4 Mall 5 Mall 6 Source: Parque Arauco analysis of tenants in each mall

101 Parque Arboleda has a higher penetration of global brands than its competitors 26 PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES) 24 23% International Brand % % 9% 8 6 6% Parque Arboleda Mall 1 Mall 2 Mall 3 Source: Parque Arauco analysis of tenants in each mall

102 Parque Caracolí has a higher penetration of global brands than its competitors 27 PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES) 25 25% International Brand % 20 18% 15 15% 10 8% 5 0 Parque Caracolí Mall 1 Mall 2 Mall 3 Source: Parque Arauco analysis of tenants in each mall

103 [28]

104 Managing Parque La Colina October 2017

105 Agenda I. Introduction Parque La Colina II. III. Commercial mix Parque La Colina team responsibilities V. Parque La Colina marketing activities VI. Sustainability at Parque La Colina Versión :32 [2]

106 Agenda I. Introduction Parque La Colina II. III. Commercial mix Parque La Colina team responsibilities V. Parque La Colina marketing activities VI. Sustainability at Parque La Colina [3]

107 Parque La Colina Total investment of US$ 221 million 63,000 m 2 of GLA 199 stores Opening date: December ,262 m 2 of park PARQUE LA COLINA 2,900 m 2 of vertical gardens 3,000 parking spots 235 bicycle parking spots First openings of H&M, Crate & Barrel and Purificación García in Colombia Source: Parque Arauco [4]

108 Mall is located by Avenida Boyacá, an important transportation road in Bogotá 5 Source: Parque Arauco

109 Location and influence area 6 Source: Parque Arauco

110 Influence area 7 HOMES BY SOCIOECONOMIC LEVEL AVERAGE INCOME BY HOME (USD) % 3% 41% % Socio Economic Class Population Homes Average Household Clothing Spend Recreational Spend Income (USD) (USD) (USD) 3 197,027 62,999 1, ,720 50,707 1, ,857 25,853 2, ,022 4,113 2, Source: Parque Arauco

111 Consumer profile 8 HOME SIZE % 17.3% 29.46% 28.8% % SEX OF HEAD OF HOUSEHOLD M F 40.97% 59.03% M F 6.15% 93.85% SEX OF MAIN SHOPPER Soure: EGM Ola III 2016 M +25 NSE 456 Bogotá

112 Consumer profile 9 SHOPPING FREQUENCY IN SHOPPING MALLS Weekly 13.4% Bi-weekly Monthly Ocassional 41.4% 22.3% 17.1% CAR USE Yes 78.1% No 21.8% Soure: EGM Ola III 2016 M +25 NSE 456 Bogotá

113 Consumer profile 10 PURCHASES IN THE LAST 3 MONTHS Women s Clothes Lingerie Women s Shoes Books 81.2% 56.8% 54.6% 51.7% Men s Clothes 48.3% Children s Clothes 35.6% Children s Shoes 34.9% Men s Shoes 30.0% Technology 21.4% Bathing Suits 16.8% Soure: EGM Ola III 2016 M +25 NSE 456 Bogotá

114 Local competition 11 Local competition: 6 shopping centers are located in the North of Bogotá. Only three are within 4 km of Parque La Colina Source: Parque Arauco

115 Local competition 12 Type of Mall Rental Condo Condo Condo Condo Condo Opening year Socio-economic target audience 3 and 4 2, 3 and 4 3, 4, and 5 3, 4, 5, and 6 3, 4 and 5 3, 4 and 5 Parking GLA ( m2) 12,500 54,000 34,800 53,000 70,000 57,000 Total Stores Anchors Carulla Homecenter, Falabella and Jumbo Jumbo Falabella and Éxito Falabella and Jumbo Falabella and Jumbo Source: Parque Arauco

116 Agenda I. Introduction Parque La Colina II. III. Commercial mix Parque La Colina team responsibilities V. Parque La Colina marketing activities VI. Sustainability at Parque La Colina [13]

117 Commercial mix 14 GLA M² BY TYPE OF STORE BRANDS OPENING IN COLOMBIA IN PARQUE LA COLINA Minor Stores 28 Department Stores 25 Small Sized Stores 17 Medium Sized Stores 16 Movie Theatre 5 Restaurants 5 Food Court 2 Games 1 Source: Parque Arauco

118 First floor layout 15 Source: Parque Arauco

119 Second floor layout 16 Source: Parque Arauco

120 Third floor layout 17 Source: Parque Arauco

121 La Colina has a higher penetration of global brands than its competitors in Bogotá 18 PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES) 50 48% International Brand % Direct competition % 30% 28% 25 23% % 12% 5 0 Parque La Colina Mall 1 Mall 2 Mall 3 Mall 4 Mall 5 Mall 6 Source: Parque Arauco analysis of tenants in each mall

122 Brands in Parque La Colina 19 Source: Parque Arauco

123 Brands in Parque La Colina 20 Source: Parque Arauco

124 21 Agenda I. Introduction Parque La Colina II. III. Commercial mix Parque La Colina team responsibilities V. Parque La Colina marketing activities VI. Sustainability at Parque La Colina

125 Strategic Plan Parque La Colina 22 Parque La Colina is the meeting place for women and their circle of friends and family in the North of Bogota, with an innovative and modern construction. The objective is to provide a unique and different experience, guaranteeing satisfactory service for the stylish women who visit the mall. This mall has unique brands that women and their social, family and work circles will want to go to. Source: Parque Arauco

126 Target Consumer 23 Socioeconomic level 4 to 6 in the North of Bogotá Stylish Over 25 Female Wife, friend, coworker, head of household Brandconscious Working

127 Strategic Pillars Parque La Colina Strategic Pillars Positioning & Client Loyalty 2. Visitor Experience 3. Optimized Commercial mix 4. Operational Excellence Source: Parque Arauco

128 Center Manager 25 Responsible for the results and general performance of the mall, which is measured different areas in the team. Natural leader of the team actively involved in the development of the Strategic Plan for each of the functional areas of the mall. Responsible for measuring and providing periodic feedback to the teams regarding the compliance of each of the stages of the strategic plan and goals. Should have their own leadership style that allows the team to be motivated and meet their objectives. Source: Parque Arauco

129 Center Manager Team 26 Commercial Lead Administration and Finance Lead Center Manager Marketing Lead Operations Lead Functional areas report to center manager: Different functional areas report to the Center Manager regarding the advances on the strategic plan. Source: Parque Arauco

130 Commercial Lead 27 Responsible for maintaining effective communication between the shopping center tenants and the team. This is the main contact for all tenats in the shopping center. Responsible for the common areas of the shopping center. Reports to the shopping center Committee and the Center Manager regarding direct management and to the Divisional Commercial Area regarding the strategic plan as well as revenue versus budget. Supports retailers in the shopping center to manage tenant sales. Source: Parque Arauco

131 Commercial Inputs 28 2 Commercial Input Current projects for tenants and kiosks (next openings) 3 Commercial Input Potential interested clients 4 Commercial Input Special requests (discounts, remodels, branding etc.) 1 Commercial Input Commercial results Center Manager 5 Commercial Input Budget control The center manager should use this committee to make suggestions regarding the commercial mix. Responsible for revenues. Challenges: tenants (window displays, other administrative challenges, etc.). Source: Parque Arauco

132 Commercial Lead 29 Head of Commercial: The head of commercial is responsible for maintaining and improving the mall revenues. This is the main contact person for all the mall tenants. Source: Parque Arauco

133 Marketing Lead 30 Responsible for implementing the annual marketing plan in the shopping center. Should ensure the proper implementation of events, sales and alliances which help position the mall. Responsible for generating necessary traffic so that the shopping center will have increased sales. Help in the management of tenant sales in the mall by accompanying the retailers in their implementation of a strategic plan. Responsible for client service, which results in managing incidents that occur in the shopping center. All incidents should be reported to the shopping center committee and dealt with according to the appropriate policy. Responsible for registering traffic and the types of clients that visit the mall, and communicating this to the team. Source: Parque Arauco

134 Marketing Inputs 31 2 Marketing Input Future marketing campaigns 3 Marketing Input Newsletters 4 Marketing Input Special project advancement (Loyalty plan tenant support plan- etc.) 1 Marketing Input Current campaign progress Center Manager 5 Marketing Input Budget control The center manager should use this committee to make suggestions regarding the marketing plan. Marketing is responsible for traffic in mall. Challenges: attracting the correct client. Source: Parque Arauco

135 Operations Lead 32 Responsible for the proper functioning of the mall facilities, safety & security. Responsible for the implementation of maintenance plans (preventive and corrective). Responsible for the operation of shopping center services (security, cleaning, parking logistics, etc.). Responsible for monitoring special projects of new or current tenants. Responsible for the analysis, measurement and management of public services of the mall. Responsible for managing and keeping up mall permits. Responsible for maintaining excellent relationships with the authorities (police, fireman, Health Secretary, Environmental Agencies, Traffic Agencies, Local Government, etc.). Source: Parque Arauco

136 Operations Inputs 33 2 Operations Input Execution of maintenance plans 3 Operations Input Various incidents 4 Operations Input Budget control 1 Operations Input Capex execution Center Manager 5 Operations Input Safety & Security The center manager should use this committee to make suggestions regarding operating measures, including capex. Operations is responsible for operational excellence. Challenge: maintenance of mall. Source: Parque Arauco

137 Administration & Finance Lead 34 Responsible for the billing and payment process for the entire mall. Responsible for managing the finance team and the timely reporting of tenant sales. Responsible for accuracy of mall info in SAP. Responsible for the reporting and analysis of sales, EBITDA trends, and CAPEX budget. Responsible for the general review and consolidation of the shopping center sales, revenues and expense annual budgets with input from all team members. Source: Parque Arauco

138 Administration & Finance Inputs 35 2 Adm & Fin. Input Collections 3 Adm & Fin. Input Monthly results: sales, EBITDA- KPIs 4 Adm & Fin. Input Billing 1 Adm & Fin. Input Budget control Center Manager 5 Adm & Fin. Input Contract parametrization SAP The center manager should use this committee to make suggestions regarding the administration and finance team. Admin. And finance is responsible for controlling the operation. Challenges: meeting EBITDA budget (revenues and expense control). Source: Parque Arauco

139 Agenda I. Introduction Parque La Colina II. III. Commercial mix Parque La Colina team responsibilities V. Parque La Colina marketing activities VI. Sustainability at Parque La Colina [36]

140 Example marketing campaigns 37 Source: Parque Arauco

141 Example marketing campaigns 38 Source: Parque Arauco

142 Example marketing campaigns 39 Source: Parque Arauco

143 Agenda I. Introduction Parque La Colina II. III. Commercial mix Parque La Colina team responsibilities V. Parque La Colina marketing activities VI. Sustainability at Parque La Colina [40]

144 Parque La Colina Sustainable Features 41 Source: Parque Arauco

145 Social Management Plan at Parque La Colina 42 SOCIAL MANAGEMENT PLAN AT PARQUE LA COLINA From the very beginning of the construction process, we required Constructora Colpatria to include a Social Management Plan to handle neighbors' observations and inquiries in a timely manner. The 31-month plan (April 2014 to December 2016) included a permanent liaison for social issues, responsible for managing areas like: Coordinating and implementing the Social Management Plan. Participating on social, socio environmental and/or technical committees. Attending to and monitoring permits. Maintaining an ongoing relationship with the different project areas. Preparing presentations for scheduled community meetings. Overseeing the community service point. Drafting and sending informational memos. Training project personnel. Responding to and resolving citizen observations and inquiries. Taking part in community activities. The following are highlights of the Social Management Plan: Information Program: This program included presentations on the project's characteristics and scope to neighboring communities. The Social Management Plan and mitigation measures were also presented. Community Service Program: This program formalized communication mechanisms and ensured appropriate and timely resolution of the inquiry response process. Disclosure Program: This program included an inventory of the properties adjacent to the spaces to be intervened. This program aimed to assess objectively and on a case-by-case basis any inconveniences that the construction could cause for neighboring lots. It also included publication of the procedure for escalating complaints as well as the established community information channels and provided updates on project characteristics and progress. Construction Personnel Training Program: This program provided general information about the project to construction personnel in order to alignthe Social Management Plan, criteria and community service channels. Source: Parque Arauco

146 [43]

147 Organizational Improvements October 2017

148 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions [2] Versión 10/16/2017 4:06

149 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06 [3]

150 Purpose, Mission and Values 4

151 5 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06

152 Revenues have grown importantly in all three countries 6 CONSOLIDATED REVENUES (USDM)¹ ² CHILE REVENUES (USDM) ¹ ² +13% +12% +9% +9% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 PERU REVENUES (USDM) ² COLOMBIA REVENUES (USDM) ² +19% +4% +40% +80,0% (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco 2016 LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17

153 Fixed, variable and parking revenues have contributed to consolidated revenue growth 7 CONSOLIDATED REVENUES (USDM)¹ ² FIXED REVENUES (USDM) +14% +12% +15% +12% LTM 2Q16 LTM 2Q LTM LTM 2Q16 2Q17 VARIABLE REVENUES (USDM) OTHER REVENUES (USDM) % % % % (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco 2016 LTM 2Q16 LTM 2Q Energy 2015 Parking 2016 LTM 2Q16 Other LTM 2Q17

154 Parque revenue stream is stable 8 CONSOLIDATED REVENUES 2% 3% 3% 2% 2% 2% 2% 4% 4% 4% 4% 4% 4% 4% 7% 7% 8% 9% 10% 10% 10% 15% 15% 13% 13% 12% 13% 12% 71% 71% 73% 72% 72% 72% 73% LTM 2Q16 LTM 2Q17 Fixed Rent Variable Rent Energy Parking Others Source: Parque Arauco

155 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06 [9]

156 Sustainability 10 Source: Parque Arauco

157 Safety and Security Culture at Parque Arauco Safety and Security 11 Today Divisional findings presentation Strategic alignment workshop Implement critical safety & security elements Progress review People and process safety & security analysis Site visit Fundamental safety & security element diagnostic VAC surveys Change disposition interviews Executive interviews Diagnostic report 6 months Current state evaluation Understand future state Transition plan Implement changes Maintain changes Source: Parque Arauco / DuPont First evaluation stage Second implementation stage

158 Process and Center of Excelence 12 We have identified 4 macro process We have identified 341 process Source: Parque Arauco

159 Talent in Parque Arauco 13 We have worked to improve the quality of professionals in our organization. Source: Parque Arauco

160 Share Services Center 14 We have been incorporating talent to this area We moved from a single team to 3 different ones Procurement and Payments We have been working on procurement discipline VIM improvements Billing We have been reducing the number of billing cycles We have been reducing manual billing Country by country billing Treasury Reducing payments with checks Controlling payment rules. Now we are reviewing robotic process automatization Reporting to divisions Source: Parque Arauco

161 Technology and Innovation 15 Infrastructure Wi Fi Systems monitoring Telephone system improvements (4 technologies) Meeting rooms Access systems Clients counting systems Innovation / automatization Partnership with Accenture ERP sophistication Revenue management Technology in Mall operations Technology in Mall construction Source: Parque Arauco

162 Trade off 16 Higher cost Lower cost Talent Saftey & security Improved quality Economies of scale Standardized processes Better controls Source: Parque Arauco

163 17 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06

164 Consolidated gross margin is mainly flat in LTM 2Q17 18 CONSOLIDATED REVENUES (USDM)¹ ² COST OF SALES (USDM) ² +14% +12% +15% +9% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 COST OF SALES (% REVENUES) GROSS MARGIN (%) 21% 21% 23% 23% 24% 23% 23% 78,9% 79,2% 77,3% 76,9% 76,5% 76,6% 77,1% (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco 2016 LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17

165 Chile 19 CONSOLIDATED REVENUES (USDM)¹ ² COST OF SALES (USDM) ² +9% +8% +14% +13% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 COST OF SALES (% REVENUES) GROSS MARGIN (%) 17,6% 16,9% 19,9% 20,6% 20,9% 20,5% 21,4% 82,4% 83,1% 80,1% 79,4% 79,1% 79,5% 78,6% (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco 2016 LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17

166 Peru 20 CONSOLIDATED REVENUES (USDM)¹ COST OF SALES (USDM) ¹ +19% +4% +16% +4% LTM 2Q16 LTM 2Q LTM LTM 2Q16 2Q17 COST OF SALES (% REVENUES) GROSS MARGIN (%) 27,6% 28,7% 25,2% 24,3% 25,6% 25,3% 24,8% 72,4% 71,3% 74,8% 75,7% 74,4% 74,7% 75,2% (1) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco 2016 LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17

167 Colombia 21 CONSOLIDATED REVENUES (USDM)¹ COST OF SALES (USDM) ¹ +40% +80% +18% +17% LTM LTM 2Q16 2Q LTM 2Q16 LTM 2Q17 COST OF SALES (% REVENUES) GROSS MARGIN (%) 49,8% 33,9% 37,2% 40,8% 38,1% 42,0% 26,3% 50,2% 66,1% 62,8% 59,2% 61,9% 58,0% 73,7% LTM LTM 2Q16 2Q LTM 2Q16 LTM 2Q17 (1) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco

168 Cost of sales efficiency measures 22 Maintenance, Cleaning and Security Bidding Process Improvement Competitive bidding process SLA definitions Standardized maintenance model across all three countries Establish standardized maintenance model First focus on vertical transportation, climate, and facility management Personnel Economies of scale Opening of La Colina with same sized administration Arauco Coronel is managed by Arauco Chillán team Professionalization of Shared Service Center Improved roles, responsibilities and processes Energy Energy efficiency projects Renegotiation of energy contracts in Chile Solar panels in Parque Lambramani Source: Parque Arauco

169 Cleaning and Security Service Level Agreements 23 Cleaning and Security third party employees amount to almost 2,000 people, which is close to 4 times the number of employees of Parque Arauco. Contractual relationships with service providers was based on number of people, and not on the quality of the service. The few indicators that exist such as rotation and absence were not appropriately weighted in the provider selection process. Improvements in the third party provider contracting process: Market Research in each country and inviting each of the main players in the market to the biding process, especially those that operating in Shopping Centers and similar assets. Bidding specifications oriented to receiving a service and not to cover predefined positions. A Sustainability Survey for each applying company. Guaranteed base salary review for the employees, to ensure this is above the minimum wage, and that it is paid on a timely basis. General labor conditions and benefit review. Standard process for all three countries. Multidisciplinary approach to decision making (Division, Regional Services, Corporate office). Decision is based not just on cost, but as well as on rotation indicators and absences. Commercial relationship is with both the country division as well as the Corporate office to find strategic alliances and opportunities for improvement. Source: Parque Arauco

170 Maintenance Strategy Project 24 We are working with an external consultant to help us develop a best in class maintenance model. Maintenance Model Methodology Define an agreed upon scalable maintenance model for all of assets Maintenance model for critical processes Maintenance model definition for critical processes Infrastructure and Service org. structure Define an agreed upon scalable maintenance model for all of assets Improvement opportunity identification Improve reliability and quality of information related to asset maitenance Source: Parque Arauco / Matrix

171 Energy costs have improved as a % of revenues 25 ENERGY COSTS (USDM)¹ ENERGY COSTS (% OF REVENUES) +16% +2% 9,1% 8,2% 8,7% 9,9% 10,1% 10,4% 9,6% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 REVENUES BY COUNTRY (%) ENERGY COSTS BY COUNTRY (%) Colombia 10,3% Colombia 17,3% Peru 29,1% 60,6% Chile Peru 29,6% 53,2% Chile (1) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco

172 26 Corporate environmental management plan Base line diagnostic Identification of gaps and opportunities KPIs and goals Evaluation and follow up Corporate environmental management procedures. Efficiency committees in Chile, Peru and Colombia. Source: Parque Arauco

173 27 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06

174 Admin. Expenses have decreased importantly 28 CONSOLIDATED REVENUES (USDM) 1,2 ADMINISTRATIVE EXPENSES (USDM) 1,2 +13% +12% +10% +7% ,0% ,4% 12,2% 10,2% ,7% LTM 2Q16 9,9% LTM 2Q17 9,4% ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV) 1,2,3 90,0% 87,6% 87,8% 89,8% ,3% LTM 2Q16 90,1% LTM 2Q17 90,6% (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= LTM 2Q16 LTM 2Q (3) Admin exp. margin= (revenues-sga)/ revenues Source: Parque Arauco LTM 2Q16 LTM 2Q17

175 Chilean admin. expenses have improved over time 29 CONSOLIDATED REVENUES (USDM) 1 ADMINISTRATIVE EXPENSES (USDM) % % % % LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV) 1,2 8,7% 10,8% 10,6% 8,1% 7,8% 7,8% 7,6% 91,3% 89,2% 89,4% 91,9% 92,2% 92,2% 92,4% LTM LTM 2Q16 2Q17 (1) Exchange rate as of June 30,2017 1USD= (2) Admin exp. margin= (revenues-sga)/ revenues Source: Parque Arauco LTM 2Q16 LTM 2Q17

176 Admin. Expenses in Peru have increased less than the increase in revenues 30 CONSOLIDATED REVENUES (USDM) 1 ADMINISTRATIVE EXPENSES (USDM) 1 +19% +4% +15% +2% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV.) 1,2 15,0% 15,1% 13,4% 13,8% 12,6% 13,2% 13,0% 85,0% 84,9% 86,6% 86,2% 87,4% 86,8% 87,0% LTM 2Q16 LTM 2Q17 (1) Exchange rate as of June 30,2017 1USD= (2) Admin exp. margin= (revenues-sga)/ revenues Source: Parque Arauco LTM LTM 2Q16 2Q17

177 Admin. Expenses in Colombia have significantly improved with the opening of Parque La Colina 31 CONSOLIDATED REVENUES (USDM) 1 ADMINISTRATIVE EXPENSES (USDM) 1 +40% +80% +14% +38% LTM 2Q16 LTM 2Q LTM LTM 2Q16 2Q17 ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV.) 1,2 26,6% 19,7% 20,2% 73,4% 80,3% 79,8% 86,1% 86,1% 86,7% 89,9% 13,9% 13,9% 13,3% 10,1% LTM 2Q16 LTM 2Q17 (1) Exchange rate as of June 30,2017 1USD= (2) Admin exp. margin= (revenues-sga)/ revenues Source: Parque Arauco LTM LTM 2Q16 2Q17

178 32 Professional fees have maintained stable PROFESSIONAL FEES (USDM) 1,2 PROFESSIONAL FEES (% OF REVENUES) 1 3,7% +17% 3,3% 3,2% 3,0% +7% 2,7% ,1% 3,0% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 REVENUES BY COUNTRY (%) PROFESSIONAL FEES BY COUNTRY (%) Colombia 10,3% Colombia 6,5% Peru 29,1% Peru 32,3% 60,6% Chile 61,2% Chile (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco

179 Insurance costs have gone down 33 INSURANCE COST (USDM) 1,2 INSURANCE COST (% OF REVENUES) 1 2,5% 2,5% 2,3% +4% 2,1% -1% 5 1,6% ,8% 1,6% LTM LTM Q16 2Q17 REVENUES BY COUNTRY (%) INSURANCE COST BY COUNTRY (%) LTM 2Q16 LTM 2Q17 Colombia 10,3% Colombia 17,9% Peru 29,1% 60,6% Chile Peru 17,8% 64,3% Chile (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco

180 Improvements in Cost of Sales and Admin. Expenses has improved the EBITDA margin 34 CONSOLIDATED REVENUES (USDM) 1,2 COST OF GOODS SOLD + ADMIN. EXPENSES (USDM) % % 260 COGS SG&A +13% +8% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 COST OF GOODS SOLD + ADMIN. EXPENSES (% REVENUES) EBITDA MARGIN (% REVENUES) 0,25 69,9% 69,4% 68,0% 68,8% 69,0% 68,8% 70,0% 0,20 0,15 0, LTM LTM 2Q16 2Q17 (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco LTM 2Q16 LTM 2Q17

181 35 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06

182 Improvements in the Colombian and Peruvian EBITDA margins have improved the corporate EBITDA margin 36 CHILE EBITDA MARGIN PERU EBITDA MARGIN 73,6% 75,0% 72,7% 73,7% 73,4% 73,9% 73,0% 60,2% 58,8% 63,7% 63,5% 64,5% 63,2% 65,6% LTM LTM Q16 2Q17 COLOMBIA EBITDA MARGIN CORPORATE EBITDA MARGIN 1 LTM 2Q16 LTM 2Q17 64,9% 69,9% 69,4% 68,0% 68,8% 69,0% 68,8% 70,0% 46,9% 43,9% 46,4% 50,0% 45,7% 24,1% (1) 2012 numbers do not include Marina Arauco Source: Parque Arauco LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17

183 37 AGENDA I. Purpose, Mission and Values II. III. IV. Top Line Growth Organizational Improvements Cost of Sales V. Administration Expenses VI. VII. EBITDA Margin Conclusions Versión 10/16/2017 4:06

184 Conclusions 38 There is no silver bullet. We have been able to implement an aggressive improvement plan without affecting the efficiency of the company. Source: Parque Arauco

185 [39]

186 Mixed Use Rationale for Malls October 2017

187 Agenda I. Real Estate Types and Diversification II. III. IV. Growth opportunity analysis for Parque Arauco Mixed use in Parque Arauco Parque Arboleda Office Tower [2]

188 In developed markets, like the USA, the real estate pie includes other type of real estate assets that are still small in Latin America 3 MARKET CAP % (US$ Billion) Weight over total x% 13% 6% 7% 21% 13% 5% 11% 24% 846 USA Latin America ResidentialIndustrial 55 Hotel 177 Retail 111 Offices 45 Self Storage 96 Health 0% 17% 3% 70% 9% 0% 0% 1% Other 0 Total 24 In the USA, the Real Estate Sector has a market cap of US$ 846 billion. In the USA there are two types of real estate that are not retail that make up 79% of the market, and which include offices, residential, health, hotel and industrial, among others. 4 ResidentialIndustrial 1 Hotel Retail Offices Self Storage Health Others Total In Latin America, only 30% of the market is made up of real estate that is not retail. Source: Green Street for size of USA market; Parque Arauco for Latin American market, from the main 17 real estate companies that trade in the region, including Parque Arauco.

189 Approximately a third of the real estate companies in the world are diversified 4 TYPE OF REAL ESTATE COMPANIES IN THE FTSE REAL ESTATE GLOBAL INDEX % of market cap (# of companies) #25 Industrial Self Storage #6 5,0% 3,1% Retail #80 24,2% Diversified 31,7% #192 13,0% Residential #60 1,8% Industrial / Offices #10 6,7% Health 3,9% #18 10,7% Hotel #19 Offices #53 Source: FTSE Real Estate Global Index

190 Agenda I. Real Estate Types and Diversification II. III. IV. Growth opportunity analysis for Parque Arauco Mixed use in Parque Arauco Parque Arboleda Office Tower [5]

191 Rationale for entering into new sectors 6 RATIONALE FOR ENTERING INTO NEW SECTORS Operation Complexity Each property type has its own operational complexities and risk profile. Retail is on the complex side of the spectrum, and therefore we believe we can learn to manage other simpler property types In some property types that are too complex such as the lodging sector, operations are usually separated fromthe landlord Client Synergies Some property types offer synergies to the Company's retail portfolio For example, hotel properties can drive traffic to the Company's malls Economic Drivers Most property types have similar economic drivers than retail real estate One exception is lodging real estate, which has very different economics than retail real estate Market Specialist Parque Arauco has 58% and 19% of its total NOI in Santiago and Lima, respectively Strong knowledge in its core markets may provide the Company with strategic opportunities in other property types Vertical Growth Source: Green Street Advisors Pursuing mixed-use projects is a way of improving the profitability of existing assets Mixed use projects also allow the company to develop projects in consolidated urban areas that otherwise could not be developed only with retail real estate because they do not meet the required return rates

192 Operations 7 Type of Real Estate Residential Industrial Hotel Retail Offices Does real estate company operate asset? Yes Depends No Yes Yes THE COMPLEXITY AND OPERATIONAL RISK ARE DIFFERENT FOR EACH TYPE OF REAL ESTATE The operational complexity of each type of real estate is different. Depending on the type of real estate, the Company should decide whether or not to externalize the operation. Self Storage Health Yes Depends In hotel real estate, normally the owner of the asset does not operate the hotel. Source: Parque Arauco

193 8 Type of Real estate Final client amount of synergies Non-existent Low Medium High Very High Residential Industrial Hotel Client synergies: Some types of real estate have synergies with retail real estate. Offices Self Storage Health The types of real estate that have the most synergies in terms of traffic are hotel, health and offices. Source: Parque Arauco

194 9 Type of Real Estate Similar drivers? Residential Industrial Hotel Offices Self Storage Health P P O P P P The majority of other types of real estate have economic and financial drivers that are similar to retail real estate. In general, other types of real estate have similar drivers, especially if the operation is externalized. An exception to this is hotel real estate which has higher volatility due to the shorter duration of contracts. Source: Parque Arauco

195 Implicit cap rate in other real estate transactions 10 AVERAGE STABILIZED PROPERTY ACQUISITION CAP RATES FOR 1H 2017 IN USA 7,8% 7,3% 7,2% 6,7% 6,7% 4,5% Suburban Office Power Centers Neighborhood Malls Central Business District Office Industrial High Street Retail Source: CBRE North America Cap Rate Survey 1H 2017.

196 11 Concentration: Parque Arauco is concentrated in Santiago and Lima, which makes us a in the cities, which could help with new types of real estate in these locations. Santiago¹: 53% del NOI de Parque Arauco Lima¹: 18% del NOI de Parque Arauco (1) Santiago represents 78% of Chile NOI, and Lima represents 65% of Peru NOI. Source: Parque Arauco

197 12 Successful malls in developed countries are located in cities, not outside the cities. These locations have expensive land and the return rates on retail projects can not be built high enough to be profitable In order to have the return rates we require, and have successful malls, we must build vertically. Mixed use is inevitable in older projects (Kennedy) and is necessary in new projects. Parque Arauco Kennedy Parque Arauco Kennedy Source: Parque Arauco

198 Vertical Growth Example 13 Mixed Use: If Parque Arauco wants to continue having malls in high density areas, it should have mixed use projects. Parque Arauco Kennedy Mixed Use Parque Arauco Kennedy is surrounded by tall buildings Residential Real Estate Offices Hotels Retail real estate only Works up to a certain height Considering this, it is natural that Parque Arauco participate in mixed use. Source: Green Street Advisors

199 Agenda I. Real Estate Types and Diversification II. III. IV. Growth opportunity analysis for Parque Arauco Mixed use in Parque Arauco Parque Arboleda Office Tower [14]

200 Parque Arauco already has examples of offices in our malls 15 Examples of offices developed by Parque Arauco: Chile Parque Arauco Kennedy Colombia Parque Arboleda Parque Caracolí Source: Parque Arauco

201 Parque Arauco already has examples of clinics in our malls 16 Examples of clinics developed by Parque Arauco: Chile Parque Arauco Kennedy Arauco Quilicura Peru MegaPlaza Norte Source: Parque Arauco

202 Parque Arauco already has examples of hotels in our malls 17 Examples of hotels developed by Parque Arauco: Chile Arauco San Antonio Colombia Parque Caracolí Source: Parque Arauco

203 Agenda I. Real Estate Types and Diversification II. III. IV. Growth opportunity analysis for Parque Arauco Mixed use in Parque Arauco Parque Arboleda Office Tower [18]

204 Office tower in Parque Arboleda 19 Year Parque Arboleda opened: 2010 Year Arboleda offices opened: 2012 Office space: 7,700 m 2 Source: Parque Arauco

205 Parque Arboleda Office Tenants 20 Source: Parque Arauco

206 Office tower in Parque Arboleda 21 PARQUE ARBOLEDA OCCUPANCY PARQUE ARBOLEDA REVENUES (THUS) % +9.2% 79,2% 94,2% 100,0% 98,7% ,6% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 OFFICE REVENUE (THUS) 1 OFFICE REVENUES / TOTAL REVENUES % % 675 6,9% 8,5% 8,1% 8,7% 7,9% LTM 2Q16 LTM 2Q LTM 2Q16 LTM 2Q17 (1) Exchange rate as of June 30,2017 1USD= Source: Parque Arauco

207 [22]

208 Parque Arboleda Overview October 2017

209 2 Agenda I. Introduction to Parque Arboleda II. II. Historical figures Target audience Versión :38

210 3 Agenda I. Introduction to Parque Arboleda II. II. Historical figures Target audience

211 Pereira 4 Pereira Capital city of Risaralda Located in foothills of Colombian coffee region Medellín and Calí) Important city for commerce Population In 2007, when project was first analyzed, population had over 400,000 people Was the sixth largest city in Colombia Within 50 km of mall there are 1,000,000 people Within 100km of mall there are 2,000,000 people Source: Parque Arauco

212 Strategic Rational for project 5 Parque Arboleda Project First opportunity to develop in Colombia Rental model will offer a growth model for smaller retailers Project already has permits in place Parque Arauco will have control (55%) through JV with the Merheg Family Considerations Rental model No property taxes for 5 years Project already validated by retailers 64% of GLA already negotiated Investment of US$ 90 million (in 2010 dollars) Source: Parque Arauco

213 Location 6 Parque Arboleda

214 Socio-economic diversification 7 Parque Arboleda Socio-Economic Level Low Low Middle-Low Middle Middle-Upper Upper Source: Parque Arauco

215 Market 8 Grocery stores and Homcenter Existing shopping malls Future expected shopping malls Services Airport Carrefour Éxito Unicentro Homecenter and Alkosto Grocery store Bus station Parque Arboleda Source: Parque Arauco