INVESTOR DAY LIMA NOVEMBER 2014

Transcription

1 INVESTOR DAY LIMA NOVEMBER 2014

2 AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES LAMBRAMANI LARCOMAR INOUTLET FAUCETT

3 AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES LAMBRAMANI LARCOMAR INOUTLET FAUCETT

4 WELCOME ADDRESS CLAUDIO CHAMORRO CFO HOLDING PARQUE ARAUCO INVESTOR DAY LIMA 2014

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6 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.

7 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS FUTURE DEVELOPMENTS

8 INTRODUCTION TO PARQUE ARAUCO PARQUE ARAUCO AT A GLANCE PARQUE ARAUCO OPERATIONAL METRICS BY COUNTRY Parque Arauco is the third largest shopping center company in Chile, with operations in Perú and Colombia. Indicator / Country CHILE PERÚ COLOMBIA Total GLA (m 2 ) 1 394, ,000 71,500 Owned GLA 359, ,495 31,460 Occupancy 95.7% 95.8% 89.6 % Revenues LTM 2 (US$MM) # of Operations Perú 35.1% TOTAL GLA 1 REVENUES LTM 2 Total 718,000 m 2 Colombia 10.0% Chile 54.9% Perú 25.4% Total 216 US$ MM Colombia 8.3% Chile 66.3% (1) Marina Arauco not included (2) Exchange Rate: US$ 1 =CLP 560; LTM= Oct. 13 Sept. 14 (1) Marina Arauco not included (2) Exchange Rate: US$ 1 =CLP 560; LTM = Oct. 13 Sept. 14 SHAREHOLDER STRUCTURE (SEPT 2014) OPERATIONAL METRICS BY FORMAT Investment Funds 27.4% Mutual Funds 1.7% Insurance Companies 0.3% Others 6.2% TOTAL GLA 1 REVENUES LTM 2 Regional 85.5% Others 5.5% Neighborhood 3.6% Brokers 21.3% Pension Funds 8.3% Market Cap 1,712 US$MM Controlling Group 26.0% Abumohor Family 2.7% Said Yarur Family 6.1% Neighborhood 6.8% Total Total 718,000 m US$ MM Others 7.7% (1) Marina Arauco not included (2) Exchange Rate: US$ 1 =CLP 560; LTM= Oct 13 Sept. 14 Others includes strip centers and outlet malls. Regional 90.9%

9 INTRODUCTION TO PARQUE ARAUCO SUCCESSFUL GROWTH STORY REVENUES (US$MM) 3.9x 2006 First steps of expansion into Perú (45% stake in Megaplaza Norte in Lima) 2006 Chilean expansion begins with Mall Center in Curicó CAGR 16.1% 2009 First Neighborhood shopping center in Perú (Mega Express Villa, in Chorrillos, Lima) 2010 Acquisition of Larcomar mall in Miraflores, Lima 2010 Inauguration of first mall in Colombia (Parque Arboleda in Pereira) 2011 First capital increase: US$168 mm Parque Arauco s 30th anniversary, marked by further expansion in Chile, Perú & Colombia 2014 Capital increase for US$182 mm GLA M 2 EBITDA US$MM NET INCOME US$MM 5.3x 4.2x 6.5x 693, , Source: Parque Arauco SVS. Exchange Rate: US$ 1 = CLP in Chilean GAAP, in IFRS. Marina Arauco not included.

10 INTRODUCTION TO PARQUE ARAUCO REVENUE TYPE AND CONTRACT DURATION OUR RENTAL REVENUES ARE DERIVED PRIMARILY FROM FIXED CONTRACTS AND 64% OF OUR CONTRACTS HAVE A DURATION OF MORE THAN 4 YEARS FIXED VS VARIABLE RENTAL REVENUES (OCT 13 SEPT 14) CONTRACT LENGTH (BASED ON % OF GLA) % Variable Revenues % Fixed Revenues < 2 years 23 years 3 4 years > 4 years Total OUR REVENUES ARE PROTECTED AGAINST INFLATION 1. As of June 2014.

11 INTRODUCTION TO PARQUE ARAUCO OPERATIONS SUMMARY THE COMPANY HAS 718,000 M 2 OF TOTAL GLA IN 12 REGIONAL SHOPPING CENTERS, 5 NEIGHBORHOOD SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIPCENTER IN CHILE, PERÚ AND COLOMBIA COLOMBIA GLA (m 2 ) 71,500 % Ownership 43.6 % Owned GLA 31,460 Partners: Grupo Bancolombia in all projects (45%) Familia Merheg in Parque Arboleda (45%) CHILE GLA (m 2 ) 394,500 % Ownership 91.3 % Owned GLA 359,985 Partners: Empresas de Ferrocarriles del Estado in Paseo Arauco Estación (17%) Aurus Renta Inmobiliaria Fondo de Inversión in all Arauco Express projects (49%) NYK, S.A. in Arauco San Antonio (20%) Inversiones Doña Olga S.A. in Arauco San Antonio (29%) Gestora de Patrimonios S.A. in Arauco Express Ciudad Empresarial (20%) PERÚ GLA (m 2 ) 252,000 % Ownership 59.3% Owned GLA 149,495 Partners: Grupo Wiese in all Megaplaza formats (50%) Los Portales S.A. in all S.C.P. projects (49%) Inversiones Centenario, S.A.A. in Parque el Golf project (50%)

12 INTRODUCTION TO PARQUE ARAUCO LEADING POSITION IN THE ANDEAN REGION COMMERCIAL REAL ESTATE INDUSTRY PARQUE ARAUCO HAS A STRONG, LEADING POSITION IN EVERY COUNTRY IN WHICH IT IS PRESENT IT IS THE 4TH LARGEST PLAYER IN CHILE, THE 3RD LARGEST PLAYER IN PERU AND ONE OF THE MAIN OPERATORS IN COLOMBIA IN TERMS OF GLA Shopping Centers / Country CHILE PERÚ COLOMBIA Total GLA GLA 394,500 m 2 252,000 m 2 73,500 m 2 718,000 m 2 Market Share 12 % 12 % 2 % 8 % Ranking #4 #3 (n.a.) (n.a.) PARQUE ARAUCO IS THE ONLY COMPANY IN THE ANDEAN REGION FOCUSED ON RETAIL REAL ESTATE Parque Arauco 85% 15% Revenues from Real Estate Chilean Company 1 Chilean Company 2 Peruvian Company 1 Peruvian Company 2 4.9% 44% 30% 14% 7% 2% 12% 9% 74% 3% 4% 64% 34% 11,687 34% 66% Revenues from Home Improvement Revenues from Department Stores Revenues from Supermarkets Revenues from Financial Operations Revenues from Other Market Share Source: ISCS.as of November 2013; Revenue Source: 2013 Company Financial Statements

13 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS FUTURE DEVELOPMENTS

14 CHILE PARQUE ARAUCO BUILT THE FIRST SHOPPING CENTER IN CHILE MORE THAN 30 YEARS AGO AND THE COMPANY CONTINUES TO BE AN INNOVATIVE LEADER IN THE MARKET

15 OUR OPERATIONS CHILE» SHOPPING CENTERS PARQUE ARAUCO KENNEDY SANTIAGO ARAUCO MAIPÚ SANTIAGO PASEO ARAUCO ESTACIÓN SANTIAGO ARAUCO QUILICURA SANTIAGO BUENAVENTURA OUTLET MALL SANTIAGO ARAUCO SAN ANTONIO SAN ANTONIO ARAUCO CHILLÁN CHILLÁN STRIPCENTERS CHILE MALL OUTLET CONCEPCIÓN CONCEPCIÓN

16 OUR OPERATIONS CHILE» SHOPPING CENTERS SANTIAGO GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy SANTIAGO Parque Arauco Kennedy 115, % 115, % Quilicura Buenaventura Outlet Arauco Maipú Paseo Arauco Estación 75,000 69, % 83% 75,000 57, % 97.8% Kennedy Estación Central Arauco Quilicura 32, % 32, % SAN ANTONIO Buenaventura Outlet Mall Arauco Express (Stripcenters Chile) 19,000 18, % 51% 19,000 9, % 83.9 % CONCEPCIÓN CHILLÁN Maipú SAN ANTONIO Arauco San Antonio 28,500 51% 14, % CHILLÁN Arauco Chillán 31, % 31, % CONCEPCIÓN Mall Outlet Concepción 6, % 6, % TOTAL CHILE 394, % 359, %

17 PERÚ PARQUE ARAUCO ENTERED PERÚ IN 2006 AND IS NOW ONE OF THE TOP SHOPPING CENTER OPERATORS IN THE COUNTRY WITH 252,000 M 2 OF TOTAL GLA

18 OUR OPERATIONS PERÚ» SHOPPING CENTERS MEGAPLAZA NORTE LIMA MEGAPLAZA EXPRESS VILLA LIMA LARCOMAR FASHION CENTER LIMA MEGAPLAZA EXPRESS VILLA EL SALVADOR LIMA INOUTLET FAUCETT LIMA MEGAPLAZA CAÑETE MEGAPLAZA EXPRESS BARRANCA MEGAPLAZA CHIMBOTE MEGAPLAZA EXPRESS CHINCHA VIAMIX CHORRILLOS PARQUE LAMBRAMANI AREQUIPA

19 OUR OPERATIONS PERÚ» SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy LIMA MegaPlaza Norte 107, % 53, % MegaPlaza Express Villa 7, % 3,500 Larcomar Fashion Center 26, % 26,000 MegaPlaza Express Villa 9, % 4,500 El Salvador InOutlet Faucett 7, % 3,825 Viamix Chorrillos 4,000 51% 2,040 CHIMBOTE MegaPlaza Chimbote 28, % 9, % 95.3% 99.4 % 82.9 % N/A 99.9 % CHIMBOTE BARRANCA LIMA CAÑETE CHINCHA CHINCHA MegaPlaza Express Chincha 7, % 3, % MegaPlaza Norte AREQUIPA AREQUIPA Parque Lambramani 30, % 30,000 CAÑETE MegaPlaza Cañete 16, % 8, % 99.9% InOutlet Faucett Larcomar MegaPlaza Express Villa Chorrillos and Viamix Chorrillos MegaPlaza Villa El Salvador BARRANCA MegaPlaza Express Barranca 9, % 4, % TOTAL PERÚ 252, % 149, %

20 COLOMBIA PARQUE ARAUCO ENTERED THE COLOMBIAN MARKET IN 2008 AND SINCE THEN HAS BEEN LEADING THE CHANGE IN THE SHOPPING CENTER BUSINESS MODEL IN THE COUNTRY

21 OUR OPERATIONS COLOMBIA» SHOPPING CENTERS PARQUE ARBOLEDA PARQUE CARACOLÍ

22 OUR OPERATIONS COLOMBIA» SHOPPING CENTERS GLA (m 2 ) %Ownership Owned GLA (m 2 ) Occupancy PEREIRA Parque Arboleda 33, % 10, % BUCARAMANGA BUCARAMANGA Parque Caracolí 38, % 21, % PEREIRA TOTAL COLOMBIA 71, % 31, %

23 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS FUTURE DEVELOPMENTS

24 FUTURE DEVELOPMENTS To date, Parque Arauco has announced projects that will add 132,300 m 2 of GLA over the next few years. Developments have been announced in Chile, Perú and Colombia and the total investment is estimated at US$ 579 million. Parque Arauco has a land bank valued at US$ million (at acquisition cost), which will be used to support future growth and to develop shopping centers, outlet malls and strip centers in Chile, Peru and Colombia. GREENFIELD PROJECTS NAME OF THE PROJECT Location Format Estimated Opening Date Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) Total Investment (MMUS$) Mall Outlet Curauma Chile Outlet Mall 4Q , % 7, Stripcenters Chile (Arauco Express) Chile Strip Center Under development 14, % 7, Stripcenters Perú Perú Strip Center Under development 25, % 12, MegaPlaza Pisco Perú Neighborhood 4Q , % 7, Others MegaPlaza Perú Various Under development TBD 50.0% TBD 124 La Colina Colombia Regional 1H , % 34, Total 124,400 69, EXPANSION PROJECTS NAME OF THE PROJECT Location Format Estimated Opening Date Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) Total Investment (MMUS$) Boulevard V Kennedy Expansion Chile Regional 1Q , % 1,000 9 Buenaventura Expansion Chile Outlet Mall 4Q , % 6, Total 7,900 7, Total 132,300 77,

25 FUTURE DEVELOPMENTS LANDBANK Name M 2 % Ownership Total Cost (MMUS$) Quilicura 2 25, % 3 Buenaventura 70, % 16 Coquimbo 40, % 4 Chicureo 47, % 10 Los Andes 40, % 5 Others in Chile 50, % 23 TOTAL CHILE 273, % 61 Parque El Golf 15,000 70% 28.5 Lurin 67, % 14 La Molina 10,085 51% 16 Colonial 2,960 51% 2 Landbank IPSA 169,745 50% 19 TOTAL PERÚ 264,790 64% 79.5 Barranquilla 56, % 54 Neiva 47, % 11 Valledupar 54,000 55% 21 TOTAL COLOMBIA 157,000 85% 86 TOTAL 695,187 83% 226.5

26 AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES LAMBRAMANI LARCOMAR INOUTLET FAUCETT

27 THIRD QUARTER RESULTS EDUARDO PÉREZ MARCHANT GERENTE DE FINANZAS HOLDING PARQUE ARAUCO INVESTOR DAY LIMA 2014

28 FINANCIAL AND OPERATING RESULTS INCOME STATEMENT CONSOLIDATED CH$ THOUSANDS 3Q14 3Q13 Chg. % Chg. % Revenues 30,784,238 26,136, % 88,685,580 75,295, % Cost of Sales (7,304,268) (5,427,593) 34.6% (20,667,518) (15,844,459) 30.4% Gross Profit 23,479,970 20,708, % 68,018,062 59,451, % Administration Expenses (3,353,095) (2,972,418) 12.8% (10,411,194) (9,077,709) 14.7% OPERATING INCOME 20,126,875 17,736, % 57,606,868 50,373, % Depreciation & Amortization (1,069,819) (685,865) 56.0% (2,587,508) (2,062,384) 25.5% EBITDA 21,196,694 18,422, % 60,194,376 52,436, % Other Income / Expenses (288,046) (1,828,635) 84.2% (1,285,183) (4,769,623) 73.1% Financial Income 1,549, , % 3,682,371 2,748, % Financial Expenses (6,804,619) (5,414,886) 25.7% (18,626,733) (13,793,406) 35.0% Share of Profit (Loss) of Associates Accounted 1,275,828 1,169, % 3,732,461 3,829, % Foreign Exchange Differences 1,830,529 (640,369) 385.9% 2,394, , % Income (Loss) for indexed assets and liabilities (1,687,822) (2,684,077) 37.1% (9,153,414) (2,816,785) 225.0% NONOPERATING INCOME (EXPENSES) (4,124,804) (8,702,860) 52.6% (19,256,111) (14,396,495) 33.8% Profit before Income Tax 16,002,071 9,033, % 38,350,757 35,977, % Income Tax (1,901,116) (910,171) 108.9% (6,593,456) (6,227,890) 5.9% NET PROFIT (LOSS) 14,100,955 8,123, % 31,757,301 29,749, % Attributable to: Equity holders of the company 12,428,020 7,034, % 27,046,397 26,872, % Minority interests 1,672,935 1,088, % 4,710,904 2,877, % NET PROFIT (LOSS) 14,100,955 8,123, % 31,757,301 29,749, %

29 FINANCIAL AND OPERATING RESULTS KEY PERFORMANCE INDICATORS 3Q14 3Q13 Chg. % Chg. % EBITDA Margin % 68.9% 70.5% % 69.6% 177 Net Income Margin % 40.4% 26.9% % 35.7% 519 FFO (Ch$ Millions) 1 15,941 13, % 45,250 41, % FFO Margin % 51.8% 52.4% % 55.0% 395 Total Tenant Sales (Ch$ Millions) 2 320, , % 936, , % Total GLA (m 2 ) 3 718, , % 718, , % Owned GLA(m 2 ) 3 540, , % 540, , % Weighted Avg. Shares (Millions) % % EPS (Ch$ Thousands) % % Stock Price (Ch$) 1, % 1, % Daily Traded Volume (Ch$ Millions) , % , % During the third quarter, sales in Parque Arauco s shopping centers in Peru and Colombia continued consolidating and showed healthy levels of growth, while sales in our shopping centers in Chile remained relatively stable in spite of the overall deceleration of retail sales in the country. Also during the quarter we incorporated the first strip center to our portfolio in Peru. This marks the first time we have participated in this format outside of Chile. Strip Center Viamix Chorrillos adds 4,000 m2 of GLA and adds to Parque Arauco s diverse commercial offering in Peru which includes regional shopping centers, neighborhood shopping centers, outlet malls and strip centers. Finally, during the third quarter the President of Parque Arauco S.A. s Board of Directors, Mr. José Said Saffie was recognized as one of the top three Directors of Leading Companies in Sustainability by Agenda de Líderes Sustentables 2020, ALAS20, organized by the think tank GovernArt. The same organization recognized Parque Arauco as one of the top five companies in Chile in terms of quality of its investor relations team. This recognition joins that given by Revista Capital during the second quarter, which distinguished Parque Arauco as one of the top three medium sized companies in Chile in terms of its investor relations team said Chief Executive Office Juan Antonio Álvarez. 1. FFO = EBITDA + FINANCIAL INCOME + FINANCIAL EXPENSES 2. TOTAL TENANT SALES = SALES OF CONSOLIDATED ASSETS 3. GLA OF MARINA ARAUCO NOT CONSIDERED 4. EXCLUDES 3,250,000 TREASURY SHARES 5.EPS = NET INCOME ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE COMPANY/WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING.

30 FINANCIAL AND OPERATING RESULTS OPERATING INCOME Revenues for the third quarter of 2014 increased 17.8% yearoveryear to Ch$ 30,784 million. The growth was primarily the result of additional GLA and improved rental revenues and tenant sales across nearly all of the Company s existing properties. Total GLA for the Company at the end of the third quarter was 718,000 m², up 11.8% compared to the same period in The increase reflects the addition of Mall Outlet Concepcion, Strip Center Manuel Montt and Strip Center Las Brujas in Chile, and Strip Center Viamix Chorrillos, MegaPlaza Cañete, and MegaPlaza Barranca in Peru. Additionally, the expansion of Arauco Chillan in Chile, and the expansions of MegaPlaza Norte, Parque Lambramani and InOutlet Faucett (Lima Outlet Center) in Peru contributed to the growth of the Company s GLA. Consolidated occupancy remained stable at 95.1% in 3Q14. Total tenant sales for the quarter increased by 14.9% to Ch$ 320,611 million. TENANT SALES (Ch$ Millions) 17.8% 936, , % 320, ,129 REVENUES (Ch$ Millions) 3Q13 3Q , % 88,686 Parque Arauco is committed to diversifying its asset base in terms of formats. During the last twelve months, Parque Arauco increased its GLA of outlet malls and strip centers by 42.5%. During the third quarter Parque Arauco inaugurated its tenth strip 17.8% center in Chile, Strip Center Las Brujas in La Reina, Santiago and 26,136 30,784 construction continued on Strip Center El Carmen de Huechuraba and Mall Outlet Curauma. Additionally, Buenaventura Premium Outlet is being expanded by 6,900 m2. In Peru, Strip Center Viamix 3Q13 3Q Chorrillos was added to the portfolio and construction on a new neighborhood shopping center, MegaPlaza Pisco, continued.

31 FINANCIAL AND OPERATING RESULTS In keeping with the Company s regional expansion strategy, revenue participation of assets outside of Chile continued to increase in the third quarter. Revenues from Colombia and Peru represented 36% of total revenues, up from 30.5% during the same period in During the third quarter of 2014, revenues from Chile totaled Ch$ 19,701 million, revenues from Peru were Ch$ 8,504 million, and revenues from Colombia reached Ch$ 2,579 million. 3Q14 REVENUES BY COUNTRY 3Q13 REVENUES BY COUNTRY 8.4% Colombia 8.2% Colombia 64.0% Chile 69.5% Chile 27.6% Perú 22.3% Perú 1H14 REVENUES BY COUNTRY 1H13 REVENUES BY COUNTRY 8.2% Colombia 6.6% Colombia 65.1% Chile 70.7% Chile 26.7% Perú 22.6% Perú Operating income during the third quarter of 2014 increased 13.5% to Ch$ 20,127 million. Cost of sales and administration expenses increased 26.9% during the period, reaching Ch$ 10,657 million. This increase is explained by additional expenses in territorial taxes, electricity and salaries.

32 FINANCIAL AND OPERATING RESULTS EBITDA The Company reported EBITDA of Ch$ 21,197 million during the third quarter of 2014, a 15.1% increase over The consolidated EBITDA margin was 68.9%, compared with the previous year s margin of 70.48%. The decrease reflects the increased number of new shopping centers in the Company s portfolio that are still in the process of maturation, as well as additional costs incurred during a period of intense growth. EBITDA (Ch$ Millions) EBITDA BY COUNTRY 3Q14 5.6% Colombia 27.1% Perú 67.3% Chile 14.8% 60, % 52,436 18,422 21,197 EBITDA BY COUNTRY 3Q13 3Q13 3Q Colombia and Peru s contribution to the company s EBITDA during the third quarter increased importantly to 32.7%, up from 25% during the same period in During the quarter, EBITDA from operations in Chile totaled Ch$ 14,269 million, Ch$ 5,734 million in Peru and Ch$ 1,193 million in Colombia. 6.0% Colombia 19.0% Perú 75.0% Chile

33 FINANCIAL AND OPERATING RESULTS Net nonoperating expenses during the third quarter of 2014 totaled Ch$ 4,125 million, compared to net nonoperating expenses of Ch$ 8,703 million in The reduction was due primarily to a better result in foreign exchange differences due to the depreciation of the local currencies against the dollar; lower expenses in the other income and other expenses account due to events that occurred in 2013 and did not occur in 2014, higher expenses in the financial expenses account due to the company holding more debt overall including a higher proportion of nominal debt; and a lower cost for losses on indexed assets and liabilities, due to a lower level of inflation in 2014 than in Income taxes for the quarter increased to Ch$ million as compared to the 2013 figure of Ch$ 910 million. Excluding the noncash deferred tax expense, third quarter 2014 real income tax totaled Ch$ 2,730 million compared to Ch$ 1,213 million in CH$ THOUSANDS 3Q14 3Q13 Chg. % Chg. % Real Income Tax (2,729,878) (1,212,648) 125.1% (7,289,635) (5,427,051) 34.3% Deferred Tax 828, , % 696,179 (800,839) 186.9% Total Tax (1,901,116) (910,171) 108.9% (6,593,456) (6,227,890) 5.9% Net profit was up 73.6% in the third quarter due to the Company s higher EBITDA and lower nonoperating expenses. Net profit attributable to equity holders of the company was up 76.7% and earnings per share increased from Ch$ to Ch$ The average number of shares outstanding for the quarter and the total number of shares outstanding increased to 817,747, 054 after the capital increase that was executed during the first quarter This figure includes 3,250,000 treasury shares. FFO ( Funds from Operations ) for the quarter were Ch$ 15,941 million, as compared to Ch$ 13,703 million in 2013, representing a 16.3% increase.

34 BALANCE SHEET REVIEW BALANCE SHEET REVIEW ASSETS Ch$ millions Var. (%) Dif. Current Assets 158, , % 41,448 Non Current Assets 1,219,890 1,084, % 135,042 Total Assets 1,378,445 1,201, % 176,489 Current assets increased to Ch$ 158,556 million from Ch$ 117,108 million at the end of 2013 due primarily to an increase in cash and cash equivalents. Cash and cash equivalents increased to Ch$ 108,255 million from Ch$ 68,946 million as of December 31, The additional cash reflects the Ch$ 103,894 million capital increase completed during the first quarter. Noncurrent assets increased to Ch$ 1,219,890 million from Ch$ 1,084,848 million as of December 31, The increase was due primarily to Ch$ 120,537 million of additional investment properties corresponding to the ongoing development of projects which include growth in Chile of Ch$ 42,669 million, growth in Peru of Ch$ 24,578 million and growth in Colombia of Ch$ 21,771 million.

35 BALANCE SHEET REVIEW LIABILITIES AND EQUITY Ch$ millions Var. (%) Dif. Current Liabilities 78,383 76, % 2,319 Non Current Liabilities 523, , % 33,104 Total Liabilities 602, , % 35,423 Equity 776, , % 141,067 Total Liabilities and Equity 1,378,445 1,201, % 176,489 Current liabilities increased by Ch$ 2,319 million while noncurrent liabilities increased by Ch$ 33,104 million, mainly due to higher deferred tax liabilities. Total equity increased by Ch$ 141,067 million due mainly to the capital increase executed during the first quarter of 2014.

36 BALANCE SHEET REVIEW FINANCIAL INDICATORS Units Covenant Limit Gross Financial Debt Ch$ million 458, ,378 Net Financial Debt Ch$ million 350, ,432 Net Financial Debt / EBITDA (12 months) times EBITDA / Financial Expenses (12 months) times > 2.5 Liabilities / Equity times < 1.4 Current Liabilities % NonCurrent Liabilities % Net financial debt at the end the third quarter of 2014 was $350,209 million. The Company remains comfortably within its financial covenants, with Liabilities/Equity of 0.8 times as compared to a limit of 1.4 times and EBITDA/Financial Expenses of 3.4 times, above the limit of 2.5 times. CONCEPT Current MM$ Non Current MM$ Current MM$ Non Current MM$ Financial Leasing 1,329 9,017 1,275 10,585 Bank Loans 46, ,401 29, ,492 Bonds 5, ,446 5, ,163 Hedge Liabilities 13,895 8,412 TOTAL 52, ,760 35, ,652

37 CASH FLOW REVIEW BALANCE SHEET REVIEW CASH FLOW (CH$ MILLIONS) Var. % Dif. From Operating Activities 36,979 39,223 6% (2,244) From Investment Activities (80,424) (111,897) 28% 31,473 From Financing Activities 79,585 43,648 82% 35,937 Eff. of var. exchange rate on cash and cash equi. 3,169 (2,223) 243% 5,392 Net cash flow during the period 39,309 (31,249) 226% 70,558 Cash and cash equivalents at beginning of period 68, ,782 34% (34,836) Cash and cash equivalents at end of period 108,255 72,533 49% 35,722 Cash flow from operating activities decreased by 6% to Ch$ 36,979 million. Investment activities during the semester generated a negative cash flow of Ch$ 80,424 million which is explained by the use of cash for the development of new projects and the expansion of existing properties. Financing activities generated a positive cash flow of Ch$ 79,585 million which is mainly explained by the Ch$ 103,894 million capital increase that was executed during the quarter.

38 MAIN FINANCIAL INDICATORS MAIN FINANCIAL INDICATORS 1 FINANCIAL RATIOS INDICATOR Unit Liquidity Level Current Assets / Current Liabilities times Leverage Ratio Total Liabilities / Equity times Short Term Debt Current Liabilities / Total Liabilities % Long Term Debt Non Current Liabilities / Total Liabilities % Interest Coverage Ratio EBITDA / Financial Costs* times Net Profit Net Profit Ch$ mill. 57,607 50,374 Basic EPS Net Profit att. Equity Holders / N shares trea. shares Ch$ Return on Equity Net profit att. Equity Holders / Av. Shareholders Equity* % Return on Assets Net profit att. Equity Holders / Average Total Assets* % Return on Operating Assets Net Profit /Average Operating Assets* % Dividend Yield Dividends Paid Last 12 m. / Last Share Price % Gross Profit Margin Operating profit / Revenues % THE OPERATIONAL AND FINANCIAL INDICATORS PRESENTED ARE CALCULATED BASED ON STANDARDS SET OUT BY THE SUPERINTENDENCIA DE VALORES Y SEGUROS, AND THEY DON T NECESARRILY COINCIDE WITH THE CALCULATIONS USED TO CALCULATE THE COMPANY S DEBT COVENANTS. * CALCULATED USING RESULTS FROM THE LAST TWELVE MONTHS.

39 PORTFOLIO 2014 Name Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) Var.% Total GLA vs 2013 Parque Arauco Kennedy 115, % 115,000 0% Arauco Maipu 75, % 75,000 1% Arauco Chillán (Plaza El Roble) 31, % 31,500 26% Paseo Arauco Estación 69,000 83% 57,270 1% Arauco San Antonio 28,500 51% 14,535 2% Arauco Quilicura 32, % 32,000 0% Arauco Express (Strip Centers) 18,000 51% 9,180 32% Buenaventura Premium Outlet 19, % 19,000 5% Outlet Mall Concepción 6, % 6,500 Nuevo TOTAL CHILE 394,500 91% 359,985 5% Megaplaza Norte 107,500 50% 53,700 29% Mega Express Villa Chorrillos 7,000 50% 3,500 0% Larcomar 26, % 26,000 0% Parque Lambramani 30, % 30,000 7% Megaplaza Chimbote 28,000 34% 9,380 0% Mega Express Villa El Salvador 9,000 50% 4,500 0% Mega Express Chincha 7,000 50% 3,612 1% Mega Express Cañete 16,500 50% 8,199 Nuevo Mega Express Barranca 9,500 50% 4,754 Nuevo InOutlet Faucett (Lima Outlet Center) 7,500 51% 3,825 50% Viamíx Chorrillos 4,000 51% 2,040 Nuevo TOTAL PERU 252,000 59% 149,495 30% Parque Arboleda* 33,000 30% 10,285 3% Parque Caracolí 38,500 55% 21,175 1% TOTAL COLOMBIA 71,500 44% 31,460 1% TOTAL ** 718,000 75% 540,940 12% *PARQUE ARBOLEDA DOES NOT INCLUDE OFFICE TOWERS **GLA OF MARINA ARAUCO NOT INCLUDED

40 PROPERTY LEVEL RESULTS NINE MONTHS 2014 Chile in MMCLP/ Perú in MPEN Colombia in MMCOP GLA Sales Revenue EBITDA 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % 9M14 9M13 Var. % Parque Arauco Kennedy 115, ,200 0% 258, ,276 7% 27,099 25,331 7% 24,941 23,393 7% Arauco Maipú 75,000 74,000 1% 113, ,156 10% 8,346 7,733 8% 7,970 7,215 10% Arauco Chillán (Plaza El Roble) 31,500 25,000 26% 45,786 45,040 2% 3,190 3,095 3% 2,431 2,407 1% Paseo Arauco Estación 69,000 68,000 1% 75,210 69,863 8% 10,017 9,758 3% 8,741 8,455 3% Arauco San Antonio 28,500 29,000 2% 23,840 22,869 4% 2,611 2,556 2% 1,728 1,758 2% Arauco Quilicura 32,000 32,000 0% 31,160 19,578 59% 2,323 1,252 86% 1, % Arauco Express (Stripcenters Chile) 18,000 13,600 32% 9,951 9,683 3% 1,712 1,640 4% 1,015 1,082 6% Buenaventura Premium Outlet 19,000 20,000 5% 22,930 20,053 14% 2,324 1,906 22% 1,794 1,401 28% Mall Outlet Concepción 6,500 1, TOTAL CHILE 394, ,800 5% 582, ,518 9% 57,848 53,271 9% 50,537 46,582 8% Megaplaza Norte 107,500 83,000 30% 799, ,182 9% 56,394 45,612 24% 44,767 35,603 26% Mega Express Villa Chorrillos 7,000 7,000 0% 47,541 41,607 14% 3,184 2,950 8% 2,380 2,070 15% Larcomar 26,000 26,000 0% 170, ,640 28% 24,405 19,654 24% 16,572 12,223 36% Parque Lambramani 30,000 28,000 7% 106,868 94,057 14% 8,284 7,543 10% 3,386 2,322 46% Mega Plaza Chimbote 28,000 28,000 0% 154, ,058 6% 7,650 7,183 6% 5,123 4,454 15% Mega Express Villa El Salvador 9,000 9,000 0% 45,479 36,505 25% 3,844 3,192 20% 2,879 2,251 28% Mega Express Chincha 7,000 7,300 4% 21,769 12,935 68% 3,144 1,815 73% 2, % Mega Plaza Cañete 16,500 79,517 4,046 2,733 Mega Plaza Barranca 9,500 25,969 3,082 2,046 InOutlet Faucett (Lima Outlet Center) 7,500 5,000 50% 32,427 25,047 29% 2,865 1,910 50% 2,464 1,520 62% Víamix Chorrillos 4,000 1,406 TOTAL PERÚ 252, ,300 30% 1,486,216 1,221,032 22% 116,898 89,859 30% 84,601 61,440 38% 954,695 Parque Arboleda 33,000 34,000 3% 109,779 99,986 10% 13,279 12,709 4% 10,279 10,633 3% Parque Caracolí 38,500 38,000 1% 87,257 42, % 11,924 6,253 91% 8,286 3, % TOTAL COLOMBIA 71,500 72,000 1% 197, ,211 39% 25,203 18,963 33% 18,564 14,327 30% 73,500 0%

41 PROPERTY LEVEL RESULTS NINE MONTHS 2014 Chile in MMCLP/ Perú in MPEN Colombia in MMCOP Occupancy EBITDA Margin Monthly sales per m 2 * Monthly revenue per m 2* 9M14 9M13 Var. b.p. 9M14 9M13 Var. b.p. 9M14 9M13 Var. % 9M14 9M13 Var. % Parque Arauco Kennedy 97.7% 98.4% % 92.4% , ,856 3% 26,882 26,019 3% Arauco Maipú 96.8% 97.2% % 93.3% , ,856 10% 12,861 11,908 8% Arauco Chillán (Plaza El Roble) 93.4% 91.3% % 77.8% , ,803 17% 11,961 14,280 16% Paseo Arauco Estación 97.8% 98.7% % 86.7% , ,612 7% 16,549 16,148 2% Arauco San Antonio 93.2% 94.7% % 68.8% ,031 91,509 7% 10,739 10,228 5% Arauco Quilicura 98.8% 97.7% % 69.6% ,967 99,159 13% 8,345 6,341 32% Arauco Express (Stripcenters Chile) 83.9% 100.0% % 66.0% ,184 88,760 5% 14,480 15,033 4% Buenaventura Premium Outlet 92.4% 90.8% % 73.5% , ,021 13% 13,914 11,598 20% Mall Outlet Concepción 75.3% 22.8% 38,508 4,537 TOTAL CHILE 95.7% 97.1% % 84.9% , ,266 3% 17,171 16,833 2% Megaplaza Norte 94.7% 92.0% % 78.1% ,037 16% % Mega Express Villa Chorrillos 99.3% 99.9% % 70.2% % % Larcomar 93.5% 89.8% % 62.2% % % Parque Lambramani 94.7% 77.6% % 30.8% % % Mega Plaza Chimbote 99.9% 100.0% % 62.0% % % Mega Express Villa El Salvador 99.4% 96.0% % 70.5% % % Mega Express Chincha 100.0% 95.0% % 55.0% % % Mega Plaza Cañete 99.9% 67.5% Mega Plaza Barranca 100.0% 66.4% InOutlet Faucett (Lima Outlet Center) 81.0% 88.0% % 79.6% % % Víamix Chorrillos TOTAL PERÚ 95.8% 91.3% % 65.3% % % Parque Arboleda 92.9% 97.1% % 83.7% , ,950 13% 46,919 43,719 7% Parque Caracolí 86.8% 77.0% % 59.1% , ,852 24% 38,418 33,597 14% TOTAL COLOMBIA 89.6% 86.5% % 70.7% , ,240 11% 42,473 39,767 7% *MONTHLY SALES/REVENUE PER M2 FIGURES ARE CALCULATED USING THE SALES/REVENUE OF THE PERIOD DIVIDED BY THE AVERAGE OCCUPIED GLA OF THE PERIOD.

42 PROPERTY LEVEL RESULTS THIRD QUARTER 2014 Chile in MMCLP/ Perú in MPEN Colombia in MMCOP GLA Sales Revenue EBITDA 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % Parque Arauco Kennedy 115, ,200 0% 83,443 82,360 1% 9,201 8,605 7% 8,484 7,979 6% Arauco Maipú 75,000 74,000 1% 37,220 36,680 1% 2,810 2,624 7% 2,736 2,432 13% Arauco Chillán (Plaza El Roble) 31,500 25,000 26% 14,931 15,007 1% 1,076 1,009 7% % Paseo Arauco Estación 69,000 68,000 1% 25,410 23,986 6% 3,427 3,285 4% 3,114 2,936 6% Arauco San Antonio 28,500 29,000 2% 7,296 7,211 1% % % Arauco Quilicura 32,000 32,000 0% 10,621 9,194 16% % % Arauco Express (Stripcenters Chile) 18,000 13,600 32% 3,877 3,511 10% % % Buenaventura Premium Outlet 19,000 20,000 5% 7,648 6,947 10% % % Mall Outlet Concepción 6,500 1, TOTAL CHILE 394, ,800 5% 191, ,896 4% 19,769 18,151 9% 17,373 15,865 10% Megaplaza Norte 107,500 83,000 30% 285, ,438 16% 19,477 15,584 25% 16,217 10,996 47% Mega Express Villa Chorrillos 7,000 7,000 0% 16,782 14,430 16% 1,063 1,038 2% % Larcomar 26,000 26,000 0% 59,528 47,155 26% 8,624 6,676 29% 6,160 4,128 49% Parque Lambramani 30,000 28,000 7% 37,775 31,484 20% 2,872 2,584 11% 1, % Mega Plaza Chimbote 28,000 28,000 0% 54,840 52,556 4% 2,647 2,535 4% 1,827 1,652 11% Mega Express Villa El Salvador 9,000 9,000 0% 16,355 12,975 26% 1,330 1,107 20% % Mega Express Chincha 7,000 7,300 4% 7,905 7,624 4% 1, % % Mega Plaza Cañete 16,500 27,568 1,612 1,214 Mega Plaza Barranca 9,500 9,622 1, InOutlet Faucett (Lima Outlet Center) 7,500 5,000 50% 13,830 11,829 17% 1, % 1, % Víamix Chorrillos 4,000 1,406 TOTAL PERÚ 252, ,300 30% 531, ,493 26% 40,982 31,377 31% 30,949 20,456 51% Parque Arboleda 33,000 34,000 3% 37,327 34,416 8% 4,490 4,308 4% 3,213 3,627 11% Parque Caracolí 38,500 38,000 1% 30,955 23,971 29% 4,067 3,713 10% 2,643 2,656 0% TOTAL COLOMBIA 71,500 72,000 1% 68,282 58,387 17% 8,558 8,022 7% 5,856 6,283 7% 73,500 0%

43 PROPERTY LEVEL RESULTS THIRD QUARTER 2014 Chile in MMCLP/ Perú in MPEN Colombia in MMCOP Occupancy EBITDA Margin Monthly sales per m 2 * Monthly revenues per m 2* 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. b.p. 3Q14 3Q13 Var. % 3Q14 3Q13 Var. % Parque Arauco Kennedy 97.7% 98.4% % 92.7% , ,983 2% 27,349 26,432 3% Arauco Maipú 96.8% 97.2% % 92.7% , ,549 1% 12,982 12,129 7% Arauco Chillán (Plaza El Roble) 93.4% 91.3% % 69.5% , ,522 29% 10,724 14,087 24% Paseo Arauco Estación 97.8% 98.7% % 89.4% , ,248 6% 16,984 16,332 4% Arauco San Antonio 93.2% 94.7% % 68.9% ,546 85,758 6% 10,428 9,704 7% Arauco Quilicura 98.8% 97.7% % 70.6% , ,580 8% 8,624 7,212 20% Arauco Express (Stripcenters Chile) 83.9% 100.0% % 66.8% ,095 90,646 5% 15,004 14,458 4% Buenaventura Premium Outlet 92.4% 90.8% % 70.2% , ,720 8% 14,022 11,562 21% Mall Outlet Concepción 75.3% 22.8% TOTAL CHILE 95.7% 97.1% % 84.7% , ,433 2% 17,319 16,829 3% Megaplaza Norte 94.7% 92.0% % 74.9% ,069 12% % Mega Express Villa Chorrillos 99.3% 99.9% % 71.5% % % Larcomar 93.5% 89.8% % 61.8% % % Parque Lambramani 94.7% 77.6% % 34.1% % % Mega Plaza Chimbote 99.9% 100.0% % 66.2% % % Mega Express Villa El Salvador 99.4% 96.0% % 71.1% % % Mega Express Chincha 100.0% 95.0% % 65.9% % % Mega Plaza Cañete 99.9% 75.3% Mega Plaza Barranca 100.0% 69.1% InOutlet Faucett (Lima Outlet Center) 81.0% 88.0% % 78.7% % % Víamix Chorrillos TOTAL PERÚ 95.8% 91.3% % 65.4% % % Parque Arboleda 92.9% 97.1% % 84.2% , ,424 12% 47,909 44,365 8% Parque Caracolí 86.8% 77.0% % 71.5% , ,566 16% 39,403 39,901 1% TOTAL COLOMBIA 89.6% 86.5% % 77.5% , ,023 13% 43,451 42,180 3% *MONTHLY SALES/REVENUE PER M2 FIGURES ARE CALCULATED USING THE SALES/REVENUE OF THE PERIOD DIVIDED BY THE AVERAGE OCCUPIED GLA OF THE PERIOD.

44 HIGHLIGHTS BY COUNTRY BUCARAMANGA PEREIRA CHIMBOTE BARRANCA LIMA CAÑETE CHINCHA AREQUIPA SANTIAGO SAN ANTONIO CHILLÁN CONCEPCIÓN

45 HIGHLIGHTS BY COUNTRY CHILE ARAUCO SAN ANTONIO, CHILE During the third quarter of 2014, Parque Arauco opened its tenth strip center in Chile, Strip Center Las Brujas, in La Reina, Santiago. This property adds 3,600m2 to Parque Arauco s portfolio as the company continues to build its GLA of strip centers through its subsidiary, Arauco Express. Construction continues on El Carmen de Huechuraba which will open during the fourth quarter of this year and become the company s 11th strip center. This quarter tenant sales of Arauco Express increased by 10%, income increased by 9% and EBITDA decreased by 5% due to higher administration expenses. In Arauco Chillan the 12,500 m2 the expansion of the mall was completed and all commercial space was opened to the public, including the new anchor store Hites, and the new food court. During the quarter Caffarena, OPV, Rip Curl and Cellairis opened in the new tower of the shopping center. The renovation of the old food court began and that space will be used for new entertainment options and fashion retailers. The mall was officially inaugurated during the third quarter by members of the local government and Parque Arauco s CEO Juan Antonio Álvarez. This quarter, tenant sales in Arauco Chillan decreased by 1%, income increased by 7% and EBITDA increased by 10%. In Parque Arauco Kennedy, the third quarter brought new improvements in terms of customer services. The Valet Parking service was expanded, enabling faster and easier access for customers wishing to use the service. At the same time, Parque Arauco began operating innovative interactive kiosks designed to enable customers to quickly sign up for Arauco Tag, the system that links the Parque Arauco Kennedy parking lot with customers highway toll payment system, making parking payment automatic and the process of entering and exiting the parking lots much more convenient.

46 The shopping mall initiated a new platform to communicate with its customers with the launch of Revista Detalle ( The website is a blog that provides a way to keep customers informed of news related to fashion, technology, art and gastronomy, among other topics. The expansion of the Luxury District continues, which will add new stores to the high end mix. The expansion is expected to be completed during the first quarter of 2015 and will add 1,000 m2 of GLA. During the quarter, tenant sales in Parque Arauco Kennedy increased 1%, revenues increased by 7% and EBITDA increased by 6%. In Mall Arauco Maipu diversification of the commercial mix continued and new stores were added including Place Vendome, Audiomusica, Polemic, and GNC, offering an array of new products and services and further increasing the draw of the mall. During the quarter, tenant sales increased 1%, revenues increased 7% and EBITDA increased 13%. In Arauco Paseo Estacion we continued remodeling and modernizing not only the physical space but also the commercial mix, adding more highly demanded brands and remodeling one of the food courts. The mall is also modernizing its signage to help customers navigate the large mall surrounded by the main train and bus station in Santiago. Tenant sales increased 6%, revenues increased 4% and EBITDA increased 6%. During the third quarter of 2014 Mall Arauco Quilicura inaugurated Clinica Megasalud, adding health care and dental care as services offered at the shopping center for the residents of Quilicura and its surroundings. New stores offering clothing and beauty supplies also opened, including Americanino, Tua and Planet Sport improving the overall commercial mix of the shopping center. The mall continues to perform above expectations and this quarter tenant sales increased 16%, revenues increased 28% and EBITDA increased 47%. In Arauco San Antonio, during the quarter the recently inaugurated Sonesta Hotel fully opened and began to see an increase in visits. The mall is also working on improving its commercial mix and has signed contracts to welcome new brands during the coming months such as Maui and Sons. The expansion of Buenaventura Premium Outlet continues and is going as planned. Some space has already been handed over to retailers for them to complete the finishing of the interior space in order to open at the beginning of next year. During the quarter tenant sales increased 10%, revenues increased 23% and EBITDA increased by 41%. Mall Outlet Concepcion, which opened during the second quarter of this year, has been well received by the community and has quickly reached an occupancy rate of 75.3%. Parque Arauco s participation in premium outlet malls will further be expanded with the opening of Mall Outlet Curauma, expected to be completed during the fourth quarter of this year. The mall, located near the city of Valparaiso, will add 7,200 m2 of premium outlet retail to the coastal region of Chile. ARAUCO QUILICURA SANTIAGO PARQUE ARAUCO KENNEDY SANTIAGO STRIP CENTER COLON SANTIAGO

47 HIGHLIGHTS BY COUNTRY PERÚ LARCOMAR, LIMA

48 In Peru, Parque Arauco announced the inclusion of the first strip center into its portfolio, ViaMix Chorrillos. Chorrillos, which has 4,000 m 2 of GLA, began contributing to the company s EBITDA during the third quarter. In Larcomar, Parque Arauco continued working to position the mall as the premier shopping center in the city. The upscale restaurant La Trattoria de Mambrino, a wellknown name in Lima, joined the already impressive list of upscale restaurants in the mall. In addition, a VIP parking area and Valet Parking service was incorporated. Finally the Larcomar webpage was relaunched with a new look and better information to improve the shopping experience even before the customer arrives. The efforts to renovate the mall can be seen clearly in the numbers this quarter the tenant sales increased 26%, revenues increased 29% and EBITDA increased 49%. In Parque Lambramani Parque Arauco continued improving the commercial mix of the mall adding new stores and services including an Easy Taxi stand to help customers find transportation options safely. The mall s customer rewards system Puntos Bonus gained traction and a number of new stores in the mall joined the program to enable purchases in their store help clients earn points that can be used in the mall and therefore encouraging customer loyalty. During the quarter tenant sales increased by 20%, revenues increased by 11% and EBITDA increased by 27% as compared to the same period in During the third quarter of 2014, after the inauguration of its expansion, InOutlet Faucett saw its occupancy rate steadily increasing to 81%. During the tenant sales increased 17%, revenues increased 18% and EBITDA increased 32%. Performance in all the MegaPlazas throughout Peru was very strong during the quarter and revenues and EBITDA increased in every shopping mall. In MegaPlaza Norte, new stores were opened including U.S. Polo and the restaurant Mr. Shao, among others. In MegaPlaza Cañete, Coney Park, a store that offers entertainment for children opened. The neighborhood shopping center format will be expanded during the fourth quarter with the inauguration of MegaPlaza Pisco in the city of Pisco. The US$14 million project will add 14,000 m 2 to the company s portfolio and will include Plaza Vea, Estilos and Promart as the anchor stores. MEGAPLAZA NORTE LIMA PARQUE LAMBRAMANI AREQUIPA MEGAPLAZA CAÑETE CAÑETE

49 HIGHLIGHTS BY COUNTRY COLOMBIA PARQUE CARACOLÍ, BUCARAMANGA

50 In Colombia, in Parque Arboleda, the interior of the office tower continues to be completed and will soon offer high quality, well equipped space to business looking for commercial space in Pereira. The shopping center remains the preferred mall in the coffee region of the country and during the quarter the tenant sales increased 8%, revenues increased 4% and EBITDA decreased 11%, as the mall began paying territorial taxes in In Parque Caracoli, the Parque Arauco team continued improving the commercial mix of the mall. The North American brand American Eagle opened its second store in all of Colombia in the mall located in Bucaramanga. The mall showed strong growth with tenant sales increasing 29%, revenues increasing 10% and EBITDA remaining flat during the quarter. Construction at Parque La Colina in Bogota is on schedule and on budget. The shopping center will be Parque Arauco s largest asset in Colombia and is expected to open during the first half of The mall will include Falabella as its anchor store, various international brands, and a variety of entertainment and service options in its 63,400 m 2 of GLA. PARQUE LA COLINA, BOGOTA PARQUE ARBOLEDA, PEREIRA

51 CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEET CH$ THOUSANDS CH$ THOUSANDS ASSETS LIABILITIES Current Assets Current Liabilities Cash and Cash Equivalents 108,255 68,946 Other Current Financial Liabilities 52,704 35,726 Other Current NonFinancial Assets 4,180 3,149 Comm. Cred. and Other Acc. Payable 11,265 25,101 Trade Accounts Rec. and Other Rec. 17,566 18,886 Current Acc. Payable to Rel. Parties 2,188 1,902 Accounts Receivable from Rel. Comp. 6,152 4,836 Current Provisions 1,508 2,330 Current Tax Receivable 22,404 21,291 Tax Liabilities 5,908 5,083 Total Current Assets 158, ,108 Current Provisions for Employees 3,086 1,999 Other Current Liabilities 1,723 3,923 Total Current Liabilities 78,383 76,064 NonCurrent Liabilities Other NonCurrent Fin. Liabilities 405, ,652 Deferred Tax Liabilities 100,194 75,999 Other NonCurrent Liabilities 17,736 8,934 NonCurrent Assets Total NonCurrent Liabilities 523, ,585 Other NonCurrent NonFin. Assets 25,791 26,458 TOTAL LIABILITIES 602, ,649 NonCurrent Accounts Receivable EQUITY NonCurrent Acc. Rec. with Rel. Part Issued Share Capital 336, ,643 Share of Profit (Loss) of Associates Accounted 50,586 49,634 Treasury Shares (3,737) (3,737) Intangible Assets exc. Surplus Value 15,160 14,988 Accumulated Earnings (Losses) 294, ,550 Surplus Value 17,427 15,629 Premium on New Issued Shares Property, Plant and Equipment 2,922 2,724 Other Reserves 4,853 (10,113) Investment Properties 1,068, ,839 Attrib. to Shareholders of the Company 632, ,344 Deferred Tax Assets 39,350 26,225 Minority Interest 143, ,963 Total NonCurrent Assets 1,219,890 1,084,848 Total Equity 776, ,307 TOTAL ASSETS 1,378,445 1,201,956 TOTAL LIABILITIES AND EQUITY 1,378,445 1,201,956

52 CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW STATEMENT CH$ THOUSANDS Var. % Net cash flow from OPERATING activities Receipts from sales of goods and services 137,235, ,058,479 22% Payments to suppliers for goods and services (68,390,124) (42,350,581) 61% Payments on behalf of employees (10,285,269) (8,142,149) 26% Income taxes refunded (1,213,151) (2,930,464) 59% Other inputs (outputs) in cash (20,367,874) (19,412,553) 5% Net cash flow from operating activities 36,979,136 39,222,732 6% Net Cash flow from INVESTMENT activities Cash flows used for acquiring subsidiaries or other businesses ( ) ( ) 70% Loans to related entities ( ) ( ) 261% Purchases of property, plant and equipment ( ) ( ) 17% Purchases of intangible assets ( ) (3.990) 3364% Proceeds from related entities % Dividends received % Purchases of other longterm assets ( ) ( ) 111% Other inputs (outputs) in cash ( ) 618% Net Cash flow from investment activities ( ) ( ) 28% Net cash flow from FINANCING activities Share Issuance 112,306,650 13,708, % Proceeds from long term debt 77,331,149 97,358,336 21% Loans to related entities 285,415 1,797,851 84% Loan Payments (80,198,278) (31,549,023) 154% Loan payments to related entities 0 (1,004,809) N/A Financial leasing payments (2,328,648) (1,355,084) 72% Dividend payments (23,900,658) (18,646,794) 28% Interest received 3,089,444 2,347,972 32% Interest paid (17,815,653) (15,196,538) 17% Other inputs (outputs) in cash 10,815,939 (3,812,512) 384% Net cash flow from financing activities 79,585,360 43,647,897 82% Net increase (decrease) in cash and cash equivalents, before the effect of changes in the exchange rate 36,140,147 (29,026,452) 225% Effects of variation in the exchange rate on cash and cash equivalents 3,168,904 (2,222,811) 243% Increase (decrease) in net cash and cash equivalent 39,309,051 (31,249,263) 226% Cash and cash equivalents at beginning of period 68,945, ,782,289 34% Cash and cash equivalents at end of period 108,254,847 72,533,026 49%

53 AGENDA WELCOME ADDRESS THIRD QUARTER RESULTS PARQUE ARAUCO PERÚ OVERVIEW AND STRATEGY PARQUE ARAUCO PERÚ CASE STUDIES LAMBRAMANI LARCOMAR INOUTLET FAUCETT

54 PARQUE ARAUCO PERU OVERVIEW AND STRATEGY EDUARDO HERRERA CEO PARQUE ARAUCO PERU INVESTOR DAY LIMA 2014

55 INTRODUCTION TO PERÚ INTRODUCTION TO THE COMMERCIAL REAL ESTATE SECTOR INTRODUCTION TO PARQUE ARAUCO PERÚ

56 INTRODUCTION TO PERÚ PERU HAS A GDP OF US$377 BILLION AND A PER CAPITA GDP OF US$12,000 PERÚ HAS A LARGE GDP FOR REGIONAL STANDARDS US$ Billion, 2014 (F) AND A RELATIVELY SMALL PER CAPITA GDP US$, 2014 (F) Brazil Chile Mexico Argentina Argentina 927 Mexico Colombia 642 Venezuela Venezuela 546 Brazil Chile 410 Colombia Peru 377 Peru Ecuador 182 Ecuador Source: Internacional Monetary Fund (IMF) Source: IMF