WEEKLY REPORT - CHILEAN EQUITIES October 11th, 2016

CHILEAN EQUITY DASHBOARD

Week ended on October 7th

Last week, the short-selling stock position on the Santiago stock exchange showed a 36% increase WoW at CLP 33,899Mn. In particular, we observed relevant (over CLP 500Mn) increases in Entel, Enersis-AM, CMPC and Copec.

The Margin trading stock showed a 1.4% WoW increase at CLP 283,771Mn. In parti- cular, we observed relevant (over CLP 500Mn) increases in plenty of companies such as Parauco, SQM-B, SM-Chile, Ripley, Sonda, LAN and CMPC. Moreover, the largest relevant decreases were Enersis-AM, Entel, CAP, Cencosud and Endesa-AM.

Regarding last week net insider movements, we highlight: (i) net investments in Carozzi carried out by “Principado de Asturias S.A” (controlling shareholder) and (ii) net divestments in Salfacorp executed by “Inversiones San Agustin S.A” (Management) and by “Inversiones Matriz S.A” (controlling shareholder).

Last week we did not observed movements of Chilean ETF quotes, while accruing +29.9% YTD.

1 Short Selling and Margin Trading weekly trend (CLP Mn)

350,000

300,000

250,000

200,000

Jacinta Correa 150,000 +562 2692-3486 [email protected] 100,000 50,000

Aldo Morales 0 +562 2692-3481 Jul/16 Jul/10 Jul/13 Jan/16 Jan/10 Jan/13 Jan/14 Jun/14 [email protected] Jun/11 Oct/16 Oct/10 Oct/12 Oct/13 Apr/16 Apr/10 Apr/13 Sep /1 4 Feb /1 5 Sep /1 1 Feb /1 2 Dec/14 Dec/10 Dec/11 Aug/15 Aug/12 Nov/15 Mar/14 Mar/11 May/15 May/12 Short Selling Margin Trading

CONTACT @BICEinversiones Source: Santiago stock exchange, BICE Inversiones. 1 2 Short Selling stock position (CLP Mn) Largest short-selling Days of stock position measu- Trade red by days of trade are Stock 9/Sep/16 16/Sep/16 23/Sep/16 30/Sep/16 7/Oct/16 Entel, Sonda and CAP. ENTEL 487 612 412 439 3,415 2.9 SONDA 1,600 1,888 1,773 1,825 1,922 2.4 CAP 2,121 2,056 2,156 2,215 2,540 1.8 ENERSIS-AM 2,400 2,820 3,656 3,783 5,741 1.8 CMPC 414 728 864 1,977 2,554 1.3 AGUAS-A 2,016 1,929 2,009 2,076 2,510 1.1 COPEC 1,824 1,854 1,394 1,505 2,293 1.1 CENCOSUD 8,048 6,724 5,748 5,394 5,598 1.1 FORUS 370 390 359 371 440 0.7 ITAUCORP 116 446 406 598 1,070 0.7 AESGENER 238 243 226 217 331 0.6 COLBUN 109 211 321 308 370 0.5 BSANTANDER 4,219 1,542 1,420 966 1,341 0.5 ANDINA-B 351 382 386 303 352 0.4 ECL 56 95 112 153 242 0.4 CHILE 1,365 1,387 1,134 673 648 0.3 IAM 1,698 1,705 403 242 116 0.3 VAPORES 29 29 29 57 27 0.3 ENDESA-CH 132 228 304 334 540 0.3 PARAUCO 366 374 161 216 303 0.2 LAN 705 708 343 336 361 0.1 CCU 586 485 487 169 172 0.1 FALABELLA 1,084 1,097 333 393 432 0.1 BCI 586 837 992 194 309 0.1 TOTAL 31,405 29,485 25,693 24,929 33,899 1.0 3 Margin Trading stock position(CLP Mn)

Largest margin trading positions are Parauco, Stock 2/Sep/16 9/Sep/16 16/Sep/16 23/Sep/16 30/Sep/16 7/Oct/16 SQM-B and Colbun. PARAUCO 38,721 38,743 36,840 36,872 37,167 38,268 SQM-B 17,110 32,862 33,327 33,305 34,159 34,246 COLBUN 32,940 31,835 31,843 31,791 31,775 31,758 ENERSIS-AM 18,432 18,173 18,090 18,094 17,617 17,520 SM-CHILE B 13,205 13,731 13,754 13,873 13,903 14,904 RIPLEY 8,432 9,216 8,544 8,475 8,719 9,094 SECURITY 7,914 7,914 10,174 8,175 8,208 8,193 SONDA 7,742 5,338 5,247 4,794 5,836 6,966 LAN 4,329 4,194 4,802 4,733 4,789 6,740 CMPC 6,749 5,133 5,340 4,750 5,107 6,239 CHILE 5,442 5,457 5,072 5,275 5,147 5,278 COPEC 2,481 3,065 4,552 4,498 4,393 4,555 ENTEL 5,437 5,744 5,871 5,346 4,218 4,183 CAP 4,964 5,846 5,009 5,219 5,912 4,126 FALABELLA 2,737 2,520 4,443 3,773 4,228 3,880 CENCOSUD 8,632 4,095 4,582 3,533 5,893 3,454 LAS CONDES 3,400 3,454 3,456 3,376 3,378 3,378 CCU 2,040 1,989 2,815 2,962 2,656 3,155 MULTIFOODS 2,640 2,664 2,723 2,723 3,037 3,149 ECL 2,030 2,062 2,795 2,931 3,056 3,029 ENDESA-AM 4,655 4,751 4,470 4,481 3,426 2,882 ANTARCHILE 2,483 2,868 2,842 2,842 2,842 2,829 ORO BLANCO 2,072 2,185 2,411 2,206 2,020 2,503 ENDESA-CH 2,897 2,859 3,895 2,828 2,053 2,433 Total 267,030 276,686 283,671 274,403 279,881 283,771

Increase > CLP 500M Decrease > CLP 500M Source: Santiago stock exchange, BICE Inversiones. 2 4 Net Insiders movements (CLP Mn) Regarding last week net insider movements, we COMPANY 1W 2W CAROZZI S.A. 27 27 highlight: (i) net inves- INVERSIONES AGRICOLAS Y COMERCIALES S.A. 1 1 S.A.C.I. FALABELLA 0 30 tments in Carozzi carried MULTIEXPORT FOODS S.A. 0 5 out by “Principado de SCOTIABANK CHILE 0 0 AGUAS ANDINAS S.A. 0 0 Asturias S.A” (controlling INGEVEC S.A. 0 -11 shareholder) and (ii) net MARBELLA COUNTRY CLUB S.A. 0 -12 SOCOVESA S.A. 0 -20 divestments in Salfacorp COMPAÑIA DE INVERSIONES LA ESPAÑOLA S.A. 0 -127 executed by “Inversiones HORTIFRUT S.A. 0 -1,685 SALFACORP S.A. -36 -36 San Agustin S.A” (Mana- gement) and by “Inver- COMPANY 1M 2M siones Matriz S.A” (con- EMPRESAS LA POLAR S.A. 10,361 10,361 RIPLEY CORP S.A. 2,090 2,090 trolling shareholder). DETROIT CHILE S.A. 618 618 DUNCAN FOX S.A. 82 82 SOCIEDAD PUNTA DEL COBRE S.A. 39 39 S.A.C.I. FALABELLA 30 -18,192 SOCOVESA S.A. -20 -44 COMPAÑIA DE INVERSIONES LA ESPAÑOLA S.A. -127 -127 CENCOSUD S.A. -150 -150 CHILECTRA S.A. -150 -150 SALFACORP S.A. -520 -2,819 HORTIFRUT S.A. -1,685 -1,685

Increase > CLP 500M Decrease > CLP 500M Source: Santiago stock exchange, BICE Inversiones.

Last week we did not 5 Creation/Destruction ETF quotes per country (% AUM) observed movements of Chilean ETF quotes, whi- AUM 5d 1m 3m 6m YTD 1Y 2015 2014 Chile 318 0.0% -3.4% 0.2% -13.9% 29.9% 28.6% -6.5% -4.3% le accruing +29.9% YTD. Brasil 4,175 0.0% 0.9% 1.2% 1.3% 22.5% 32.5% -13.7% 7.3% Colombia 89 1.1% 1.1% 3.4% 0.4% 14.4% 21.4% 23.2% -3.4% México 1,054 3.4% -7.8% 6.6% -15.0% -13.9% -10.4% -26.1% -1.3% Perú 202 0.0% -1.6% -3.6% -11.3% 14.5% 8.8% -20.3% -15.1% World 5,288 0.0% 0.0% -9.7% -8.4% -20.3% -19.7% 31.1% 22.1% EM 31,842 0.0% 0.0% 20.5% 12.7% 28.1% 30.7% -19.3% -14.2% Latam 964 1.6% 6.3% 15.3% 14.7% 28.1% 50.1% -7.2% -42.9% USA 196,852 0.2% -1.7% 3.7% 5.3% 2.4% 5.5% 13.7% 9.5% Europe 2,349 0.0% 0.0% -8.9% -11.4% -12.4% -10.4% 11.6% 34.7% Asia (ex Japan) 3,060 0.4% 5.8% 23.2% 17.5% 7.5% 8.5% 6.6% 20.6% Japan 14,187 1.2% 0.1% -5.0% -16.1% -34.7% -34.1% 8.1% 50.4% China 3,955 0.0% 0.0% 0.0% -10.2% -38.3% -41.8% 10.8% -7.4% Money Market 3,608 0.9% 6.3% -6.0% -0.9% 13.6% -16.6% 13.0% 2.3% Develop Gov. 8,623 -2.0% -3.6% -11.6% -10.0% 1.5% -15.2% 42.7% -7.1% Inv. Grade 32,652 -0.9% 2.1% 3.3% 9.6% 23.8% 30.5% 12.9% -47.2% High Yield 17,955 4.0% 11.5% 3.3% 20.8% 14.3% 25.7% -1.4% -5.9% EM Corp Debt 4,131 4.7% 7.2% 17.3% 23.0% 35.9% 42.8% 19.2% -38.5% Inf. Linked 294 0.0% -8.6% -27.3% -39.4% -48.2% -42.7% -96.1% -5.3% Source: BICE Inversiones.

3 9 Appendix 2. Valuation & Recommendation

Target Mkt. Cap ADTV EV/EBITDA P/E Price 16E T.P. % IPSA Price (MMUS$) (MMUS$) 2015 2016E 2017E 2015 2016E 2017E Consumer Staples 9.581 6,2% 6,1 9,6x 9,4x 8,7x 21,4x 19,9x 18,4x Andina 2.583 2.535 NEUTRAL 3.487 1,4% 1,0 8,2x 8,9x 8,0x 21,8x 23,5x 21,2x CCU 6.700 8.350 NEUTRAL 3.698 3,0% 3,2 11,3x 9,6x 8,8x 24,0x 19,0x 18,1x Concha y Toro 1.174 1.378 BUY 1.310 1,3% 1,5 11,2x 9,9x 9,9x 15,9x 14,2x 13,1x Embonor-B 1.565 1.625 BUY 1.086 0,4% 0,4 7,5x 9,6x 9,0x 18,6x 23,4x 20,7x Electric Utilities 26.678 20,5% 14,2 1,6x 6,4x 6,1x 14,2x 9,3x 10,7x Enersis Americas 110 130 BUY 8.056 5,5% 3,3 - 4,8x 4,6x 17,7x 8,8x 10,7x Enersis Chile 67 83 NEUTRAL 4.878 3,8% 3,3 - 7,6x 5,8x 0,0x 12,6x 10,9x Endesa Chile 450 648 BUY 5.513 5,0% 2,7 - 7,2x 7,1x 32,7x 7,0x 9,9x Endesa Americas 303 328 BUY 3.706 2,4% 1,5 - 5,9x 5,1x 0,0x 13,3x 8,9x E-CL (1) 1.105 1.202 NEUTRAL 1.738 1,5% 1,9 7,2x 7,8x 9,7x 16,6x 6,1x 26,8x AESGener (1) 222 310 NEUTRAL 2.788 2,3% 1,7 11,1x 9,6x 10,0x 15,2x 13,1x 10,8x Industrial 1.381 0,6% 0,0 7,1x 7,3x 6,6x 10,2x 11,9x 10,8x SK 860 950 NEUTRAL 1.381 0,6% 0,0 7,1x 7,3x 6,6x 10,2x 11,9x 10,8x Commodities 8.095 4,0% 6,9 10,0x 10,3x 10,2x 31,7x 26,8x 24,3x CAP 3.900 2.000 SELL 871 0,6% 2,8 5,4x 8,4x 10,6x 182x -122x -41x Soquimich 18.351 12.250 NEUTRAL 7.225 3,4% 4,2 11,9x 11,0x 10,0x 30,1x 23,3x 20,4x Retail 30.411 14,9% 33,1 13,9x 14,3x 12,3x 21,8x 19,0x 16,1x Cencosud 1.960 2.000 BUY 8.321 5,5% 15,2 9,4x 10,4x 8,9x 17,3x 15,6x 13,2x Falabella 4.930 5.080 BUY 17.926 6,2% 14,2 16,7x 16,3x 14,1x 22,2x 21,4x 17,9x Parauco 1.504 1.613 BUY 1.999 2,1% 1,9 16,5x 19,6x 16,0x 15,3x 18,7x 17,1x Ripley 409 377 NEUTRAL 1.183 0,8% 1,3 14,7x 15,8x 12,9x -12,4x 15,4x 13,3x Forus 2.545 2.190 NEUTRAL 983 0,5% 0,6 9,3x 13,3x 12,2x 13,7x 20,9x 19,7x Sanitary 5.416 4,0% 3,1 11,1x 12,2x 12,1x 16,7x 18,2x 17,3x Aguas-A 415 412 BUY 3.669 2,8% 2,4 11,1x 12,2x 12,1x 16,7x 18,2x 17,3x IAM 1.170 1.098 BUY 1.748 1,2% 0,7 ------Healthcare 2.258 0,6% 0,7 9,9x 8,4x 9,3x 11,3x 4,0x 9,4x ILC 7.650 8.785 BUY 1.143 0,6% 0,6 - - - 10,0x 2,5x 8,0x Habitat 747 955 NEUTRAL 1.116 0,0% 0,1 8,9x 7,9x 7,8x 12,8x 11,4x 11,4x Telecom & IT 1.690 1,5% 1,3 8,7x 8,1x 7,2x 22,5x 18,6x 15,7x Sonda 1.299 1.461 BUY 1.690 1,5% 1,3 8,7x 8,1x 7,2x 22,5x 18,6x 15,7x Transportation 5.396 5,4% 8,5 9,8x 9,6x 8,7x -23,1x 23,0x 21,3x LATAM 5.641 5.864 NEUTRAL 4.596 4,7% 8,2 10,0x 9,7x 8,8x - 26,2x 23,9x SMSAAM 55 54 BUY 800 0,7% 0,3 7,2x 8,5x 8,4x 12,0x 13,6x 13,0x Banks 34.589 16,9% 11,6 - - - 13,6x 14,3x 13,2x Chile 74 75,9 NEUTRAL 10.831 3,6% 3,1 - - - 12,2x 12,7x 11,8x SM Chile-B 213 208 NEUTRAL 4.182 2,2% 0,6 ------BSantander 34,4 34,7 NEUTRAL 9.669 5,1% 3,7 - - - 13,3x 13,1x 12,1x BCI 30.412 32.410 BUY 5.521 3,6% 2,0 - - - 9,0x 10,5x 9,8x Itaucorp 5,7 6,5 NEUTRAL 4.385 2,4% 2,2 - - - 8,7x 13,2x 8,3x BI Sample 4.076 4.350 125.496 74,7% 85,6 8,2x 9,7x 9,1x 18,8x 14,0x 14,2x

Source: BICE Inversiones

4 SALES TEAM RESEARCH TEAM

Felipe Figueroa E. Agustín Álvarez M. Equity Sales and Trading Head of Research [email protected] [email protected] Jacinto Laso P. Aldo Morales E. Equity Sales and Trading Head of Equity Research [email protected] [email protected] Sebastián Carvallo I. Andrés De la Cerda G. Equity Research Analyst Fixed Income and Currency [email protected] [email protected] Jacinta Correa A. Equity Research Analyst [email protected] Sebastián Senzacqua B. Chief Economist [email protected] Juan Pablo Castillo C. Senior Strategy Analyst [email protected]

Contact Follow Download Visit 600 400 4000 @BICEInversiones App BICE Inversiones biceinversiones.cl

5 This report has been prepared solely for the purpose of providing information to customers of BICE Inversiones Corredores de Bolsa S.A. This report is not a solicita- tion or an offer to buy or sell stocks, bonds or other instruments mentioned in it. This information and where it is based has been obtained from public information sources on our best knowledge and that according to our belief seems reliable. However, this does not guarantee that they are accurate or complete. The forecasts and estimates presented in this report have been prepared with the best information and tools available, but this does not guarantee that they will be fulfilled. All opinions and expressions contained in this report may be modified at any time without notice. BICE Inversiones Corredores de Bolsa S.A. and any company or person related to it and its controlling shareholders may at any time have short and long term investments in any of the instruments mentioned in this report or related with companies or markets mentioned and can buy or sell those same instruments.

BICE Inversiones Corredores de Bolsa S.A. could eventually recommend purchases and / or sales of shares for trading positions. Such actions could be incorporated into other recommended portfolios. The projections and estimates presented in this report should not be the sole basis for the adoption of an appropriate inves- tment decision and each investor must make its own assessment based on their personal situation, investment strategy, risk tolerance, tax situation, etc. The result of any financial transaction carried out with the support of this report is the sole responsibility of the person who performs it. Foreign securities and issuers that can be referenced in this report, and are not currently registered in the Securities Registry by the Chilean Superintendence of Securities and Insurance, are not applicable laws and regulations governing domestic stock market, therefore is the sole responsibility of investors to get their own information regarding such securities and foreign issuers before making any investment decision. The frequency of the publication of the reports, if any, is at the discretion of BICE Inversiones Corredores de Bolsa S.A. It is not allowed to quote or reproduce in whole or in part this report without the express permission of BICE Inversiones Corredores de Bolsa S.A.

At the date of publication of this report, none of the members of the Research Department holds, directly or indirectly, investments in the issuer or issuers analyzed in it. At the date of publication of this report, none of the members of the Research Department holds, directly or indirectly, links to the issuer analyzed in it. The members of the Research Department expressly declare that no part of their compensation was, is or will be directly or indirectly related to specific recommen- dations or views expressed in this report. BICE Inversiones Corredores de Bolsa S.A. and members of the Research Department expressly declare that there is no commercial relationship with the issuer analyzed in this report. BICE Inversiones Corredores de Bolsa S.A. and / or any company or person associated with it, may at any time have a position in any of the financial instruments mentioned in these reports and may buy or sell those same instruments, in which case they should be guided by the “Manual for share transactions and other securities by staff and BICECORP SA and its subsidiaries” and is available in www.biceinversiones.cl.

At the date of publication of this report, the analyst ______holds, directly or indirectly, investments in the issuer ______or issuers analyzed in it. At the date of publication of this report, the analyst Mr.______holds, directly or indirectly, with related links to the issuer analyzed in it. BICE Inversiones S.A. Corredores de Bolsa states that currently maintains a business relationship with the issuer ______analyzed in this report. Mr. ______analyst states that currently maintains a business relationship with the issuer analyzed in this report.

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