Parque Arauco Day Colombia

October 2017 2

Agenda

• Parque Arauco Corporate 3 Overview • Parque Arauco Colombia 40 Overview • Industry 76 • Managing Parque La Colina 104 • Organizational Improvements 147 • Mixed Use Rationale for Malls 186 • Parque Arboleda Overview 208 / 1/ 1

Parque Arauco Corporate Overview

October 2017 Parque Arauco Corporate Overview- October 2017 CONTACTS SARAH INMON (HEAD OF INVESTOR RELATIONS) | EDUARDO PEREZ MARCHANT (CORPORATE FINANCE MANAGER) | CLAUDIO CHAMORRO (CFO) |TEL: (562) 22990510 | EMAIL: [email protected] / 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 anticipa- ted 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 / 3

INTRODUCTION

OUR OPERATIONS

INVESTMENT HIGHLIGHTS

FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017 / Parque Arauco at a glance 4 Parque Arauco OPERATIONAL METRICS BY COUNTRY

Chile Peru Colombia Parque Arauco is the third largest shopping center operator in Chile and Peru, and the fourth largest in Colombia. 39.6% Indicator/ Country CHILE PERU COLOMBIA TOTAL 29.1% Total GLA (m2)1 455,500 391,500 142,500 989,500 14.4% TOTAL TOTAL GLA1 2 REVENUES2 Owned GLA (m ) 418,685 276,750 124,050 818,485 989,500 M2 US$MM 260 Revenues LTM 2Q17 (US$MM)2 157 76 27 260 # of operations 25 19 3 47 10.3% 60.6% 46.0% SHAREHOLDER STRUCTURE (JUNE 2017)

OPERATIONAL METRICS BY FORMAT 6% Others Regional Neighborhood Outlet Strip center Local mutual funds1% Controlling26% Group 10. 7% 5.0% 6.4% 6.7% MARKET CAP3 2.7% Foreign24% US$MM 2,263 4.0% Said5% Yarur Family TOTAL investment TOTAL GLA1 funds REVENUES2 989,500 M2 US$MM 260 Abumohor3% Family

Local13% pension funds Local brokers22% 78.9% 85.6% Parque Arauco Corporate Overview- October 2017 DAILY TRADED VOLUME 2Q17: US$MM 2.9

Source: Parque Arauco. (1) Does not include Marina Arauco nor Mall Center Curicó. (3) Source: Bloomberg (2) Revenues from July 2016- June 2017. Exchange Rate: US$= 660.05 / In the last five years Parque Arauco has doubled GLA, 5 revenues and EBITDA 1982 Parque Arauco Kennedy opens as first shopping center in Chile 1993 Arauco Maipu inaugurates in Santiago GLA(1) M2 1995 Parque Arauco S.A. IPO 1997 Inauguration of Marina Arauco in Viña del Mar, Chile x 2006 Parque Arauco expands into Peru with the purchase of a 45% +1.8 stake in MegaPlaza Norte in Lima 989,500 2008 Parque Arauco acquires Arauco Estación in Santiago, Chile 818,500 935, 900 2010 Parque Arauco opens first mall in Colombia, Parque Arboleda in Pereira 693, 100 728,500 2011 Capital increase for US$145 MM 559, 700 2012 Parque Arauco enters outlet format in Chile by acquiring Arauco Premium Outlet Buenaventura 2014 Capital increase for US$182 MM Purchase of minority shareholders in Colombia and Peru 2012 2013 2014 2015 2016 LTM 2015 2Q17 2016 Capital increase for US$100 MM

REVENUES(1) US$ MM EBITDA(1) US$ MM +1.8x +1.8x 260 182 222 243 152 167 1191 130 141 163 99 113 Parque Arauco Corporate Overview- October 2017 2012 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 LTM 2Q17 2Q17 Source: Parque Arauco. Exchange Rate: US$= 660.05 (1) Does not include Marina Arauco nor Mall Center Curicó. / The spread over the cost of capital of our last projects is 6 approximately 3%

6% 9% 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, Parque Arauco Corporate Overview- October 2017 Arauco Express Irarrázaval, Arauco Express Las Brujas, Arauco Express Luis Pasteur, Arauco Express Manuel Montt, Arauco Express Palmares, Arauco Premium Outlet Buenaventura, Arauco Premium Outlet Curauma, Arauco Premium Outlet San Pedro, Arauco Premium Outlet Coqumbo, Arauco Quilicura, MegaPlaza Chimbote, MegaPlaza Express Villa El Salvador, MegaPlaza Express Chincha, InOutlet Faucett, Viamix Chorrillos, Viamix Las Malvinas, InOutlet Premium Lurín, MegaPlaza Cañete, MegaPlaza Express Barranca, MegaPlaza Pisco, El Quinde Cajamarca, El Quinde Ica, Plaza Jesús María, Parque Caracolí.

(2) Weighted Average Cost of Capital / Total Return 7

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 RETURN1, LAST 5 YEARS TOTAL RETURN1, LAST 15 YEARS ANNUALIZED, LOCAL CURRENCY ANNUALIZED, LOCAL CURRENCY

14% Parque Arauco 18% 12% 12% 11% Falabella 18% 8% 8% IPSA 11% 7% 7% 7% 6% Simon 11% 4% 4% 4% Taubman 9% Klepierre 7% -1% -1% -7% -6% -6% S&P 500 7% GGP IPSA Macerich

Simon 4% Unibail Intu Klepierre Iguatemi Falabella Macerich S&P 500 Multiplan Fibra Uno GGP Hammerson Taubman 4% Parque Arauco Hammerson 2% Alliansce BR Malls Intu -4% Cencosud Parque Arauco Corporate Overview- October 2017

Source: Bloomberg (1) Total return includes dividends as of july 31, 2017. / Revenue type and contract duration 8

FIXED VS VARIABLE RENTAL REVENUES CONTRACT LENGTH AS OF JUNE 30, 2017 (BASED ON % OF REVENUES) 15% Other Revenues 40% 100%

Rental85% Revenues 14% 14% 32% 14% Variable Revenues

‹2 YEARS 2-3 YEARS 3-4 YEARS ›4 YEARS TOTAL 86% Fixed Revenues

Our rental revenues are derived primarily 40% of our contracts have a duration of more Parque Arauco Corporate Overview- October 2017 from fixed contracts and are protected against inflation than 4 years and the average length is 6.0 years / Purpose, Mission and Corporate Values 9

CORPORATE PURPOSE OUR VALUES

Our purpose is to create spaces that contribute to improving people’s lives.

MISSION Openness v Respect and inno ation to change Our mission is to be leaders in developing and for people operating real estate assets, through profitable and and the environment sustainable growth that generates value for our stakeholders Choose the PILLARS OF OUR CULTURE Right option, not the Happiness easiest Makethings Excellence one happen STRATEGIC OBJECTIVES Create a work environment Growth that inspires an exceptional Parque Arauco Corporate Overview- October 2017 Profitability Sustainability Te a m / 10

INTRODUCTION

OUR OPERATIONS

INVESTMENT HIGHLIGHTS

FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017 / 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

Owned GLA Year of Chile GLA (m2) % Ownership Occupancy (m2) incorporation Parque Arauco Kennedy 112,500 100% 112,500 96.8% 1982 Arauco Maipú 74,000 100% 74,000 99.2% 1993 Arauco Chillán 32,000 100% 32,000 99.9% 2007 Arauco Estación 66,500 83% 55,195 97.1% 2008 Arauco San Antonio 28,500 65% 18,388 95.7% 2009 Arauco Express1 33,000 53% 17,602 82.2% 2012 Arauco Premium Outlets2 47,000 100% 47,000 92.7% 2012 Arauco Quilicura 32,000 100% 32,000 100.0% 2013 Arauco Coronel 30,000 100% 30,000 93.5% 2017 Chile Total Chile 455,500 92% 418,685 95.9% 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. / / 12 Peruvian Portfolio Colombia 12

In Peru in the company has 6 regional shopping centers and 9 neighborhood shopping centers, 2 outlets and 2 strip centers. The Perú average age of the portfolio is 6 years.

Owned GLA Year of Peru GLA (m2) % Ownership Occupancy (m2) incorporation MegaPlaza Norte 111,500 50% 55,750 98.2% 2006 MegaPlaza Express Villa 8,000 50% 4,000 96.5% 2009 Chorrillos Larcomar 26,500 100% 26,500 92.8% 2010 Parque Lambramani 29,500 100% 29,500 88.2% 2010 MegaPlaza Chimbote 28,000 50% 14,000 94.3% 2012 MegaPlaza Express Villa El Salvador 9,500 50% 4,750 96.4% 2012 Chile MegaPlaza Express Chincha 9,000 50% 4,500 76.8% 2013 InOutlet and Viamix(2) 23,000 100% 23,000 76.1% 2013 MegaPlaza Cañete 16,500 50% 8,250 97.9% 2013 MegaPlaza Express Barranca 10,000 50% 5,000 98.7% 2013 MegaPlaza Pisco 14,500 50% 7,250 97.3% 2015 El Quinde Cajamarca 31,000 100% 31,000 80.8% 2015 El Quinde Ica 36,500 100% 36,500 96.5% 2015 Plaza Jesús María 14,500 100% 14,500 47.7% 2016

MegaPlaza Jaén 14,500 50% 7,250 82.8% 2016 Parque Arauco Corporate Overview- October 2017 MegaPlaza Huaral 9,000 50% 4,500 65.6% 2017 Total Peru 391,500 71% 276,250 90.2%

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. / / Colombian Portfolio Colombia 13 13

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

Owned GLA Year of Colombia GLA (m2) % Ownership Occupancy (m2) incorporation Parque Arboleda 41,000 55% 22,550 95.3% 2010 Parque Caracoli 38,500 100% 38,500 87.8% 2013 Parque La Colina 63,000 100% 63,000 88.1% 2016 Total Colombia 142,500 87% 124,050 90.1%

Chile Parque Arauco Corporate Overview- October 2017

Source:Parque Arauco / 14

INTRODUCTION

OUR OPERATIONS

INVESTMENT HIGHLIGHTS

FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017 / 15

Consistent1. results in a Portfolio . challenging macroeconomic Our operations Important6 growth environment opportunities

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

Investment Conservative5. debt Highlights Stable2. and structure and outstanding diversified revenues financial performance

Solid corporate4. governance Strong commercial3. and increased concern with relationships with local and Parque Arauco Corporate Overview- October 2017 sustainability global businesses / 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 8.2% 7.4% 7.6% 7.1% 7.2% 6.0% 5.9% 3.9% 3.5% 4.9% 4.9% 3.3% 2.3% 2.3% 3.1% 1.6% 1.7% 1.9%

2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2014 2015 2016 2014 2015 2016 2014 2015 2016

POPULATION (MILLIONS) GDP PER CAPITA, PPP Chile Peru Colombia Chile Peru Colombia 48.2 48.8 49.3 23,682 24,113 24,797 Av. Latam: 31.1 31.5 31.8 41.7 13,833 14,103 14,609 12,389 12,903 13,501 Av. Latam: 18.0 18.2 18.4 15,078

2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f Parque Arauco Corporate Overview- October 2017

Source: GDP Growth, Population and GDP Per Capita: International Monetary Fund. Retail Sales: Euromonitor. / Consistent results in a challenging macroeconomic environment 17 Results have been positive in all three countries

GLA1 Tenant sales1 Revenues1 NOI1,2 +8.3% +9.5% +8.5% +9.9% 455,500 1,077,188 420,500 983,814 95,716 103,848 85,191 93,660 Chile

LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 +4.8% +3.9% +7.6% +12.3% 391,500 2,807,789 248,242 193,714 2,701,107 Peru 373,500 230,717 172,496

LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 +80.4% +49.9% +69.9% +89.3% 142,500 554,027 72,532 58,468 Colombia 79,000 369,553 42,681 30,886

LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 LTM 2Q16 LTM 2Q17 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) / Consistent results in a challenging macroeconomic environment 18 Consistent Same Store Growth and a Healthy Occupancy Cost

CHILE SAME STORE SALES / CHG. % CHILE SAME STORE RENT / CHG. % CHILE OCCUPANCY COST

7.2 7.0 10.2% 10.2% 6.2 4.1 3.7 4.3 2.6 2.7 2.6 58%Others 1.7 Anchor42% Stores

2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 2Q17

PERU SAME STORE SALES1 / CHG. % PERU SAME STORE RENT1 / CHG. % PERU OCCUPANCY COST

5.8 4.2 3.8 4.6 7.6% 7.5% 2.0 3.0 1.6 Others41% 0.4 -1.1 -2.9 Anchor59% 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 2Q17 Stores 1 COLOMBIA SAME STORE SALES1 / CHG. % COLOMBIA SAME STORE RENT / CHG. % COLOMBIA OCCUPANCY COST

9.2 8.2 8.4 13.9% 7.6 11.8% 5.7 5.3 5.5 Others70% Parque Arauco Corporate Overview- October 2017

0.2 Anchor30% -2.4 -0.9 Stores

2Q16 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. / Stable and diversified revenues 19 Parque Arauco diversifies its market risks at a country, format, and socio-economic level

COUNTRY LEVEL DIVERSIFICATION (%REVENUES) FORMAT LEVEL DIVERSIFICATION (% REVENUES)

Chile Peru Colombia Regional Neighborhood Outlet Strip center 10.3% 5.0%6.7% 2.7% 29.1%

60.6% 85.6%

SOCIO-ECONOMIC LEVEL DIVERSIFICATION (% REVENUES) 43 7 100 50

Medium to High Medium Income: Medium to Low Income: Includes ABC1 Includes C3 and D in Income: Includes Parque Arauco Corporate Overview- October 2017 and C2 in Chile, A and B Chile, C and D in Peru E in Chile and Peru in Peru and 6, 5 and 4 and 3 in Colombia and 2 and 1 in in Colombia Colombia / Stable and diversified revenues 20 With a 39% market share in Chile, Parque Arauco is the outlet market leader in the countries where we operate

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

Location 1>> Located near main cities

Brands Keys to the Premium Outlet Format 2>> Premium name-brands >> Parque Arauco Corporate Overview- October 2017

Discounts 3>> More than 30% discount / Strong commercial relationships with local and global brands 21 Consolidated commercial relationships with well-known tenants

Malls Country Total GLA (m2) Years as a client

CHILE 11 PERU COLOMBIA 96.554 35 Anchor CHILE Stores >> 10 PERU 74.548 35 CHILE 5 PERU 48.050 12

CHILE 4 PERU 33.011 16

CHILE 4 PERU COLOMBIA 8.934 18 CHILE PERU Non 18 COLOMBIA 7.316 11 Anchor CHILE >> 12 PERU COLOMBIA 6.058 9

Stores Parque Arauco Corporate Overview- October 2017 CHILE PERU 14 COLOMBIA 2.307 14 Source: Parque Arauco / Strong commercial relationships with local and global brands 22 Parque Arauco is supporting the globalization of several brands entering the Andean region

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 80% of new GLA leased in Parque UNDER ARMOUR 445 RALPH LAUREN 207 Arauco Kennedy over the last 5 years LOUIS VUITTON 420 TORY BURCH 201 GUCCI 406 ERMENEGILDO ZEGNA 197 has been leased to international BANANA REPUBLIC 363 ENTEL 190 brands. AMERICAN EAGLE 351 ARTE ISABEL ANINAT 161 AEROPOSTALE 342 VICTORIA´S SECRET 129 Many brands have opened their DOLCE & GABBANA 316 ETAM 123 >> BURBERRY 276 MILK 117 first store in Chile in Parque Arauco EMPORIO ARMANI 247 CANELA HOME & DECOR 105 Kennedy during the last five years SALVATORE FERRAGAMO 241 METRO CUADRADO 114 including Tiffany & Co., Dolce & TIFFANY & CO 219 JUSTICE 104 Gabbana, Forever 21, Bath & Body EL VOLCAN 218 BATH & BODY WORKS 103 BOLD 214 OCTOBER 102 Works, Tory Burch, Victoria’s Secret, Omega, Versace Collection, Vince OTHERS 3,020 Camuto, and BCBG. TOTAL 14,956 Parque Arauco Corporate Overview- October 2017 INTERNATIONAL LOCAL

Source: Parque Arauco

International Local / Solid corporate governance and increased concern with sustainability 23 Parque Arauco has received important recognitions from local and international organizations

Workplace Recognition Management Recognition

Parque Arauco was recognized by Best Capital Markets Strategy: Great Place to Work in Chile and Andes in 2016. Peru in 2016. Investor Relations Recognition Sustainability Recognition

In 2016, Parque Arauco is part of the Dow Jones Best Investor Relations Emerging Market Sustainability Index. We are the Department for Mid-Size first Latin American real estate company to be part companies according to Santander Parque Arauco Corporate Overview- October 2017 of this prestigious index. and Revista Capital in 2016.

Source: Parque Arauco / Solid corporate governance and increased concern with sustainability 24 In the last years we have continued advancing our sustainability strategy 2016 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 2017. 3.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 Parque Arauco Corporate Overview- October 2017 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.

Source: Parque Arauco / Conservative debt structure and outstanding financial performance 25 Parque Arauco's policy is to finance projects with 50% debt and 50% equity, and is comfortably within all its covenants

LIABILITIES / EQUITY |NET FINANCIAL DEBT / EQUITY < 1.40x < 1.50x 1.18x 1.14x 1.16x 0.76x 0.79x 0.72x 0.89x 0.81x 0.78x 0.59x x 0.43x 0.47x

2012 2013 2014 2015 2016 2Q17 2012 2013 2014 2015 2016 2Q17

EBITDA/FINANCIAL EXPENSES NET FINANCIAL DEBT/EBITDA 3.89x 3.42x 6.06x 3.37x 3.33x 5.87x 5.88x 3.04x 3.12x 5.00x 4.25x > 2.50x 3.85x Parque Arauco Corporate Overview- October 2017

2012 2013 2014 2015 2016 2Q17 2012 2013 2014 2015 2016 2Q17 / Conservative debt structure and outstanding financial performance 26 The Company has a conservative debt structure

LIABILITY AMORTIZATION PROFILE AND DURATION1 IMPROVEMENT IN LOCAL DEBT RATING June 2014 (US$MM) Fitch: AA- Feller: AA- ICR:AA- Average Duration: 4.1 Years 188 175 98 77 BBB- BBB BBB+ A- A A+ AA- AA AA+ 64 33 38 9 11 SUMMARY OF DEBT BY CURRENCY 0 0-3 4-6 7-12 13-24 25-36 37-48 49-60 6-10 11-20 21-35 months months months months months months months years years years CLP 12% 7% CLP 66% UF June 2017 (US$MM) Average Duration: 7.0 Years 333 55% UF JUNE 2014 13% PEN JUNE 2017 16% PEN 181 156 150 158 USD COP 11% 10% 134 300 9% COP 80 SUMMARY OF DEBT RATES 35 4 7 0-3 4-6 7-12 13-24 25-36 37-48 49-60 6-10 11-20 21-35 21% months months months months months months months years years years Variable 7% JUNE 2014 DEC. Variable 79% JUNE 2017 Parque Arauco Corporate Overview- October 2017 Fixed 93% 2016 Source: Parque Arauco Fixed (1) Does not include accrued interests and the exchange rate is at the close of June 30, 2017. / Conservative debt structure and outstanding financial performance 27 The cost of debt has decreased importantly in the past 5 years

Date: 12-12-2014 Base: 1.66% Spread: 1.74% Date: 04-17-2015 Date: 10-12-2016 Duration: 14.3 Base: 1.62% Base: 1.46% Spread: 1.68% Spread: 1.02% Duration: 14.77 Duration: 12.71

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 Parque Arauco Corporate Overview- October 2017 unsecured with no collateral.

Source: Risk America / Important growth opportunities 28 Parque Arauco has 0.9 million m2 and a 2% market participation in GLA:Mexico 17.4 million m2 Latin American and a 38% of total 8% market participation Brazil in the Andean Region. GLA: 14.7 million de m2 32% of total

Latin America GLA: 46.1 million m2 Andean Region GLA: 11.9 million m2 25% of total Indicator CHILE PERU COLOMBIA Total GLA (th) 3,600 2,700 5,600 GLA Parque Arauco (th) 454 382 142 Market Share 13% 14% 3% Rank #3 #3 #5

Argentina Parque Arauco Corporate Overview- October 2017 GLA: 2.1 million m2 Source: Prepared using information published by the International Council 5% of total of Shopping Centers (ICSC)., Peruvian Shopping Center Council (ACCEP) and Parque Arauco analysis Important growth opportunities / 29 Parque Arauco participates in markets with a growing retail market

RETAIL SALES PER CAPITA AND GLA PER 1,000 INHABITANTS1

16,000 2,500

2,000 12,000 AT KEARNEY GRDI WINDOW OF OPPORTUNITY2 1,500 8,000 OPENING PEAKING MATURING CLOSING 1,000

Brazil 4000 500 GLA per 1,000 habitants Mexico Retail Sales Per Capita Colombia Peru Chile - United Canada Australia UK Chile Mexico Colombia Peru Brazil Argentina States

GLA per 1,000 habitants Retail sales per capita

Middle class is growing; Consumers seek Consumer spending has Consumes are more RETAIL PRESENCE BY COUNTRY3 (% OF GLOBAL BRANDS IN COUNTRY) consumers are willing organized formats and expanded significantly; used to modern retail; to explores organized greater exposure to desirable real estate is discretionary spending formats; government is global brands; retail more difficult to secure; is higher; competition 57.5% relaxing restrictions shopping districts are local competition has is fierce both from local 51.5% being developed; real become more and foreign retailers; 39.5% estate is affordable and sofisticated real estate is expensive available and not readily available 21.0% 20.7% 11.7% 10.2% 9.9%

UK United Mexico Chile Brazil Argentina Venezuela Peru States 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. / Important growth opportunities 30 Parque Arauco's growth has come from greenfield projects and M&A

44,500 989,500 126,500

90,000 37,400 132,858 67% Greenfields 80,242 663,143 m2 27,676 91,625 83,708 24, 595 55,651 194,745 M&A 33% 326,357 m2

Total Total Total Total Total Total Total Total Total Total New New Total Parque Arauco Corporate Overview- October 2017 GLA GLA GLA GLA GLA GLA GLA GLA GLA GLA GLA GLA GLA in 2006 in 2007 in 2008 in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 in 2016 in 2017 2Q2017 Greenfield M&A Source: Parque Arauco / 31

INTRODUCTION

OUR OPERATIONS

INVESTMENT HIGHLIGHTS

FUTURE DEVELOPMENTS Parque Arauco Corporate Overview- October 2017 / Future Developments 32 2017 and onwards

Estimated Total Total Total Owned New Projects Type Country Format Opening % ownership Investment Investment GLA m2 GLA m2 Date Local Currency USDMM Parque Angamos Development Chile Neighborhood 2H18 11,000 55% 6,050 886,000 36 MegaPlaza Villa El Salvador II Development Peru Neighborhood 2H17 11,000 50% 5,500 36,000 11 Various Projects SCP Development Peru Neighborhood 2H18 19,500 100% 19,500 180,000 55 Viamix Colonial Development Peru Strip Center 2H17 3,000 100% 3,000 25,000 8 Arauco Premium Outlet Bogota Development Colombia Outlet 2H17 13,000 100% 13,000 78,000 26 Subtotal 57,500 47,050 136

Estimated Total Total Total Owned Expansions Type Country Format Opening % ownership Investment Investment GLA m2 GLA m2 Date Local Currency USDMM Parque Arauco Kennedy Expansion2 Expansion Chile Regional / Hotel 2H21 11,000 100% 11,000 5,355,000 215 Parque Lambramani Renovation Renovation Peru Regional 3Q17 N/A 100% N/A 22,500 7 El Quinde Cajamarca Expansion Expansion Peru Regional 1H18 2,500 100% 2,500 40,000 12 Hotel Bucaramanga Expansion Colombia Hotel 3Q17 N/A 100% N/A 17,500 6 Subtotal 13,500 13,500 240

Estimated Total Total Total Owned Projects Incorporated in 2017 Type Country Format Opening % ownership Investment Investment GLA m2 GLA m2 Date Local Currency USDMM Arauco Coronel Acquisition Chile Regional 1Q17 30,000 100% 30,000 1,520,000 61 MegaPlaza Express Huaral Development Peru Neighborhood 1Q17 9,000 50% 4,500 46,500 12 Subtotal 39,000 34,500 73

New Landbank 11

Total 110,000 95,050 460 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, 664.3 CLP/USD, 3,045 COP/USD, 3.3 PEN/USD. 2) In addition to the 11,000 m2, this expansion includes a 401 room Hilton by Hilton Hotel and largest hotel convention center in Santiago. / 33 Parque La Colina was inaugurated in December 2016

OPENING DATE: The shopping center opened on December 6, 2016.

COMMERCIALIZATION STATE: 88.1% of the GLA is open. H&M opened on May 6, 2017.

BRANDS: Parque Arauco Corporate Overview- October 2017 / 34 We announced a new expansion of Parque Arauco Kennedy

HOTEL OPERATOR:

PROJECT DETAILS: Investment: 5,355,000 UF - The five star Hilton hotel will 5-star hotel: Hilton by Hilton have 401 rooms, two restaurants, Rooms: 401 three bars, two pools, a gym Convention center: 3,000 m2 and an executive lounge. It will Parking spots: 700 have the largest hotel convention Additional GLA: 11,000 m2 center in the country, with the possibility of hosting over 2,800 - The project will have the first people. five star Hilton Hotel in Chile, a convention center, as well as the - The expansion will include a incorporation of new stores and new flagship Falabella store with more parking. almost 25,000 m2 of GLA. This store will occupy the first four floors of the Parque Arauco Corporate Overview- October 2017 / 35 Landbank

Name m2 % Ownership Total Cost (local currency) Total Cost (USD MM) Quilicura 25,486 100% 78,000 3 Buenaventura 115,864 100% 455,000 18 Chicureo 47,614 100% 206,000 8 Los Andes 39,254 100% 117,000 5 Others in Chile 67,550 92% 522,000 21 Total Chile 295,768 98% 1,378,000 55 Parque El Golf - San Isidro 16,350 68% 127,590 40 Chimbote 42,657 100% 18,000 6 Talara 30,675 100% 9,400 3 Ica 12,643 100% 13,500 4 Chiclayo 6,609 100% 6,300 2 Pomalca Chiclayo 45,042 100% 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% 85,685 26 Total Peru 365,393 70% 296,355 92 Neiva 49,537 100% 18,000 6 Valledupar 46,000 100% 30,000 10 Barranquilla 56,166 100% 76,000 26 Total Colombia 151,703 100% 124,000 42 Total 812,864 86% 189 Parque Arauco Corporate Overview- October 2017

1) 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, 664.3 CLP/USD, 3,045 COP/USD, 3.3 PEN/USD. / 36 Glossary

»Adjusted FFO Margin - AFFO / revenues the areas available for lease tenants pay Parque Arauco divided by the sales of the tenant. »AFFO -Adjusted Funds From Operations: Net Profit - »Greenfield Projects - Organic development of new Depreciation & Amortization - Other Income/expenses shopping centers »Owned GLA -Total GLA weighted by Parque Arauco’s - Share of Profit (Loss) of Associates Accounted - Foreign interest in the mall Exchange Differences - Income (Loss) for indexed »Landbank -Land held by the company for future assets and liabilities - Gains (losses) from the difference development »Pipeline -Greenfield and expansion projects under between the previous book value and the fair value of development financial assets - Deferred tax+ Associates accounted »LTM -Refers to information from the last twelve months Adjusted FFO »Premium Outlet - Shopping center located outside of »Monthly Revenues/m2 -Monthly revenues divided by the city offering name brand clothing and goods for a »Controlling Adjusted FFO -AFFO attributable to the the occupied GLA for the period reduced price shareholders of the company »Monthly Sales/m2 -Monthly tenant sales divided by the »Regional Mall - A shopping mall with a GLA over 20,000 »Controlling FFO -FFO attributable to the shareholders of occupied GLA for the period m2. the company »Neighborhood Mall -A shopping mall with a GLA »SSR -Same Store Rent: Percentage change in rent »EBITDA - Earnings Before Income Tax Depreciation and between 6,000 and 20,000 m2 collected from tenants that paid rent in both of the Amortization: Revenues + Cost of Sales + Administration periods compared Expenses - Depreciation and Amortization EBITDA » Net income margin -Net profit / revenues margin -EBITDA divided by revenues »SSS -Same Store Sales: Percentage change in sales »NOI -Net Operating Income: Revenues + Cost of Sales + from tenants that reported sales in both of the periods »EPS -Earnings Per Share: Net income attributable to Administration Expenses - Depreciation & Amortization compared the equity holders of the company/weighted average + Associates accounted NOI number of shares outstanding »Occupancy -GLA paying rent divided by total GLA »Strip Center -A shopping center with a GLA less than 6,000 m2 Tenant Sales Tenant sales of the consolidated »FFO -Funds From Operations: Net Profit - Depreciation assets & Amortization - Share of Profit (Loss) of Associates »Occupancy cost -Minimum rent, plus variable rent, plus Accounted + Associates Accounted FFO common expenses, plus a promotion fund that the »UF -Unidad de Fomento: A chilean currency unit indexed »GLA -Gross Leasable Area. Equivalent to the sum of all according to inflation on a daily basis. Parque Arauco Corporate Overview- October 2017

Parque Arauco Colombia

October 2017 Agenda

I. Introduction to Colombia

II. Parque Arauco Colombia

Versión 16-10-2017 20:30[2] Agenda

I. Introduction to Colombia

II. Parque Arauco Colombia

[3] 4 Colombia has one of the largest GDPs in the region

COLOMBIA HAS A LARGE GDP FOR REGIONAL STANDARDS AND A RELATIVELY SMALL PER CAPITA GDP US$ Billion, 2017 (F) (PPP) US$, 2017 (F) (PPP)

Brazil 3.344 Chile 25.710

Mexico 2.532 Argentina 21.548

Argentina 961 Mexico 20.299

Colombia 770 Brazil 15.983

Chile 478 Colombia 15.433

Peru 462 Peru 14.369

Venezuela 454 Venezuela 14.263

Ecuador 184 Ecuador 10.782

Source: World Economic Outlook, October 2016, International Monetary Fund (IMF) 5 Colombia will continue to have a leading growth in the region

COLOMBIA HAS STRONG GROWTH GOING FORWARD COLOMBIA GDP GROWTH EXPECTATION Read GDP% Change, Average 2017-2012 Real GDP% Change Forecase

3,6 3,6 3,6 Peru 3,7 3,0 Colombia 3,2 2,3 Argentina 2,6

Chile 2,5

Mexico 2,4

Brazil 1,6

Ecuador 0,3 2017 2018 2019 2020 2021

Source:, World Economic Outlook, April, 2017, International Monetary Fund (IMF) 6 Colombia has a diversified economy

2016 GDP BREAKDOWN BY ECONOMIC ACTIVITY

Social and personal services Commerce 17,1% 13,5%

Manufacturing 12,4%

23,1% Financial intermediation 8,2% Construction

7,1% 3,8% Mining 6,7% 7,9% Electricity, gas and water Agriculture Transport and communications

Source: Colombian Central Bank 7 diversified exports and imports

TOP 2016 EXPORTS (% OF TOTAL) TOP 2016 IMPORTS BY USE (% OF TOTAL)

Coffee Transportation Non-durable goods 7,7% 7,8% 13,3% Industrial Carbon Durable Goods 28,5% 14,8% Industrial 18,9% 11,2%

Construction 3,1% 8,5% 5,8% Mining Combustibles 3,9% 8,9% 33,2% Farming Farming 1,0% Petroleum and derivtives 32,9% Ferronickel Industrial (Raw material)

Source: Central Bank of Colombia 8 There are 5 cities in Colombia with over 1,000,000 people

City Population 1. Bogotá 8,000,000+

2. Medellín 2,500,000 + Cartagena Barranquilla Soledad 3. Calí 2,400,000+ Cúcuta 4. Barranquilla 1,200,000+ Medellín Bucaramanga 5. Cartagena 1,000,000+ Soacha Pereira 6. Cúcuta 650,000+ Bogotá Calí Ibagué 7. Soledad 600,000+ 8. Ibagué 550,000+ 9. Soacha 525,000+ 10. Bucaramanga 500,000+ 11. Villavicencio 500,000+ 12. Santa Marta 490,000+ 13. Pereira 470,000+

Source: DANE 9 Macroeconomic indicators are sending mixed signals

CHALLENGING CONSUMER CONFIDENCE STABLE UNEMPLOYMENT RATES Consumer confidence levels (DANE) Unemployment rates(DANE)

40 11,0 30 10,5 20 10,0 10 9,5 0 -102012 2013 2014 2015 2016 2017 2018 9,0 -20 -30 0,0 -40 2012 2013 2014 2015 2016 2017 2018

DECREASING INFLATION DECREASING LONG TERM RATES Inflation % (DANE) Colombia generic 10 year bond (Bloomberg)

7 9

6 8 5 7 4 6 3

0 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 10 Some consumption indicators are improving

DECREASING POVERTY RATES IMPROVED BANKING PENETRATION Poverty headcount (% of population) %Population with at least one financial product

42% 40% 71,5% 72,5% 75,0% 37% 67,2% 34% 62,2% 64,9% 33% 31% 29% 28%

2008 2009 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

A STEADY POPULATION GROWTH GROWING URBAN POPULATION Population growth % Urban population growth % 1,2% 1,6% 1,1% 1,1% 1,5% 1,5% 1,1% 1,0% 1,4% 1,4% 1,3% 1,0% 0,9% 0,9% 1,3% 1,3%

2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015

Source: World Bank for poverty rates, population growth rates and Asobancaria for banking penetration. 11 improving institutional frameworks

EASE OF DOING BUSINESS RANK (2016)

Mexico 47 WEF GLOBAL COMPETITIVENESS DETAIL FOR COLOMBIA Colombia 53 Score 1 (low) to 7 (high) Peru 54 CHILE Chile 57 Institutions 7 Argentina 116 Innovation 6 Infrastructure 5 Brazil 123 Business 4 Macroeconom sophistication 3 2 WEF GLOBAL COMPETITIVENESS RANK (2016) 1 Health and Market size 0 Chile 33 Technological Higher PERÚ Mexico 51 readiness Colombia 61 Financial Goods market Peru 67 efficiency Labor market Brazil 81 efficiency Argentina 104

COLOMBIA

Source: Ease of Business, World Economic Forum 12 Shopping center sales have outpaced sector dynamics in Colombia

FINAL CONSUMPTION (COLOMBIAN CENTRAL BANK) (THUSD) RETAIL SALES (EUROMONITOR) (THUSD)

200.000 70.000 +6,1% +3,9% 60.000 150.000 50.000 40.000 100.000 30.000 50.000 20.000 10.000 0 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016

SHOPPING CENTER SALES (RADDAR/ ACE COLOMBIA) RETAIL AND MALL SALES AS % OF TOTAL FINAL (THUSD) CONSUMPTION

6,1% 6,9% 7,3% 7,3% 8,0% 8,7% 15.000 +11,6% 33,3% 32,8% 32,3% 33,0% 33,6% 35,0% 10.000

5.000 60,6% 60,3% 60,4% 59,8% 58,4% 56,3%

0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Source: Colombian Central Bank, Euromonitor, Raddar, ACE Colombia Mall Retail (ex mall) Others 13 Distribution of Colombian spend

HOW 100 COLOMBIAN PESOS ARE SPENT IN A SHOPPING CENTER

39,0% 38,4%

2016 2017 28,6% 27,7%

8,6% 7,5% 6,5% 7,3% 6,6% 7,2% 5,2% 4,5% 3,7% 3,6% 2,6% 3,0% 0,0% 0,1% Anchor Clothing Others Eating EntertainmentTransport. Health Housing Education stores and shoes outside & culture & Comm. of the home Source: Raddar 14 Colombian elections

• Presidential elections take place in May 2018 • Latest Datexco voting intention survey results:

WHO WOULD YOU VOTE FOR IF THE ELECTIONS WERE TOMORROW? WHICH CANDIDATE WOULD YOU NEVER VOTE FOR?

20,1% 18,6% 16,5% 13,7% 13,1% 12,1% 11,2% 7,6% 5,9% 4,1% 4,3% 3,3% 2,6% 2,4%

Germán Sergio Gustavo Clara Juan No Piedad Germán Gustavo Francisco Alejandro Roy Simón Vargas Fajardo Petro Lopez Manuel know Response Córdoba Vargas Petro Santos Ordoñez Barreras Gaviria Lleras Galan Lleras

WHAT ARE THE THREE PROBLEMS THE NEXT PRESIDENT SHOULD SOLVE?

52,9% 41,0% 39,4%

20,0% 15,4% 12,8% 11,6% 11,5% 10,1% 9,8%

Health Education Unemploy. Safety Economy Political Educational National Common Health quality corruption coverage safety crimes coverage Source: Datexco 15 Peace agreement

• 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 non- repetition 6. Implementation and verification mechanisms

Source: Colombia Peace Organization Agenda

I. Introduction to Colombia

II. Parque Arauco Colombia

[16] 17 History of Parque Arauco in Colombia

Agreement signed with Merheg´s Parque Agreement Purchase of family to Arboleda Purchase of Parque La Colina signed with Bucaramanga develop opens in Valledupar land opens in Bogotá Bancolombia land Parque Pereira CHILEArboleda

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

PERÚ

Parque Purchase of Arauco opens Purchase of Purchase of Parque Caracolí office in La Colina Barranquilla opens in minority stake Colombia land land Bucaramanga COLOMBIA

Source: Parque Arauco 18 Legal Structure

99,9956392% PARQUE ARAUCO PARQUE ARAUCO S.A. INTERNACIONAL S.A.

100% 100%

INVERSIONES COLOMBIANAS INVERSIONES INMOBILIARIAS ARAUCO S.A.S. ARAUCO ALAMEDA S.A.S.

100% 100% 48,9998878%

INVERSIONES INMOBILIARIAS INMOBILIARIA LA COLINA EJE CONSTRUCCIONES S.A.S BUCARAMANGA ARAUCO S.A.S ARAUCO S.A.S 6,0001632%

Source: Parque Arauco 19 Organizational chart

Country Manager Juan Pablo Romero

Gerencia Subgerencia de Legal Personas

Gerencia de Gerencia de Centros Gerencia Gerencia Administración y Comerciales Inmobiliaria Comercial Finanzas

Source: Parque Arauco 20 Parque Arauco has three shopping centers in Colombia

Owned GLA Year of ColombiaCHILE GLA (m2) % Ownership (m2) Occupancy incorporation Bucaramanga Parque Arboleda 41,000 55% 22,550 95.3% 2010 Pereira Parque Caracoli 38,500 100% 38,500 87.8% 2013 Bogotá Parque La Colina 63,000 100% 63,000 88.1% 2016

Total Colombia 142,500 87% 124,050 90.1% PERÚ

COLOMBIA

Source: Parque Arauco 21 Parque Arboleda - Pereira

PARQUE ARBOLEDA Opening: 2010

Location: Cra. 14 #5-20, Pereira Pereira Anchor: Falabella Type of mall: Regional Total GLA: 41,000 m² Owner: Parque Arauco (55%) and Merheg´s family (45%)

KEY METRICS

GLA (M2) AND REVENUES WITHOUT NOI WITHOUT OVERHEAD OCCUPANCY (%) TENANTS SALES (MMCOP) OVERHEAD (MMCOP) (MMCOP)

+10,3% +3,8% 94,6% 95,6% 95,3% +15,9% +9,2% 92,9% +23,0% +14,4% 215.055 218.743 198.348 210.655 24.373 25.079 21.636 22.959 19.436 20.019 16.279 17.501 40.500 40.500 41.000 33.000

2015 2016 LTM LTM 2015 2016 LTM LTM 2015 2016 LTM LTM 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 Source: Parque Arauco 22 Parque Caracolí - Bucaramanga

PARQUE CARACOLÍ Opening: 2013 Bucaramanga Location: Carrera 27 #29 145 Bucaramanga Anchor: Falabella Type of mall: Regional Total GLA: 38,500 m² Owner: Parque Arauco (100%)

KEY METRICS

GLA (M2) AND REVENUES WITHOUT NOI WITHOUT OVERHEAD OCCUPANCY (%) TENANTS SALES (MMCOP) OVERHEAD (MMCOP) (MMCOP) 100,0% 88,4% +3,6% -0,3% +6,2% +1,5% 87,3% 87,8% +4,5% -0,5%

18.978 20.073 19.723 19.656 12.801 13.909 13.385 13.591 151.378 161.384 158.898 158.129 38.500 38.500 38.500 38.500

2015 2016 LTM LTM 2015 2016 LTM LTM 2015 2016 LTM LTM 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 Source: Parque Arauco 23 Parque La Colina - Bogotá

PARQUE LA COLINA Opening: 2016 Location: Cra. 58d #146-51, Bogotá Bogotá Anchor: Falabella Type of mall: Regional Total GLA: 63,000 m² Owner: Parque Arauco (100%)

KEY METRICS

REVENUES / M2 WITHOUT GLA (M2) AND SALES / M2 (MMCOP) OVERHEAD (MMCOP) NOI MARGIN OCCUPANCY (%)

88,1% 90,0% 77,7% 663.194 87,9% 90,8% 94.093 505.343 89.975

63.000 63.000 63.000

1Q17 2Q17 2017 E 1Q17 2Q17 1Q17 2Q17 1Q17 2Q17 Source: Parque Arauco 24 Revenue type and contract duration

FIXED VS VARIABLE RENTAL REVENUES COLOMBIA CONTRACT LENGTH IN COLOMBIA As of June 30, 2017 Based on % of revenues Other Revenues 16% 21 9

47 84% Variable Revenues 3% 23 Rental Revenues

< 2 years 2-3 years 3-4 years >4 years 97% Fixed Revenues

Source: Parque Arauco 25 Parque GLA in Colombia has tripled since 2010

Total GLA

+331,8% Parque La Colina 143.000 142.500 Parque Caracolí CHILE Parque Arboleda

71.500 71.500 71.500

PERÚ 33.000 33.000 33.000

2010 2011 2012 2013 2014 2015 2016 2017

COLOMBIA

Source: Parque Arauco 26 The owned GLA has increased over 12x

We increased our ownership when we purchased minority participation in 2015

CHILE Own GLA 140.000 123.775 124.050 0,9 Parque La Colina 0,8 120.000 Parque Caracolí 0,7 100.000 Parque Arboleda 0,6 80.000 Ownership % PERÚ 0,5 60.000 56.650 0,4 0,3 40.000 31.174 31.174 0,2 20.000 9.999 9.999 9.999 0,1 0 0,0 COLOMBIA2010 2011 2012 2013 2014 2015 2016 2017 27 The GLA of Parque Arauco Colombia has increased fourfold in the last five years

GLA (M²) TENANT SALES (MUSD)2

+331,8% +80,4% 346% +68,1%

141.500 142.500 190

129 120 113 71.500 71.500 71.500 79.000 105 78 33.000 33.000 43 49

2011 2012 2013 2014 2015 2016 LTM LTM 2011 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q2017 2Q16 2Q17 REVENUES (MUSD)1,2 NOI¹ (MMCOP)

544% +69,9% 568% +89,3%

25 20

14 15 15 11 12 9 10 11 10 8 4 5 3 4

2011 2012 2013 2014 2015 2016 LTM LTM 2011 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) Not including overhead expenses (Corporate headquarters, regional Services Center and Colombia Division) (2) 1 USD= 2,921.72 COP Source: Parque Arauco 28 The company has stable management indicators in Colombia

OCCUPANCY (%) SAME STORE SALES (CHG. %)

90% 93% 93% 92% 92% 90% 11,5% 89% 90% 90% 85% 8,6%

5,3% 4,5% 1,6% 2,0% 0,9% 0,2%

-0,5% -1,1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

OCCUPANCY COST (%) SAME STORE RENT (CHG. %)

12,5% 15% 11,2% 14% 13% 14% 12% 12% 12% 12% 8,4% 7,6% 10% 9% 5,5% 5,3% 5,5%

1,1% 1,5%

-0,9% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Source: Parque Arauco 29 Diversified assets and revenues

ASSET LEVEL DIVERSIFICATION (º/º REVENUES 2017E) REVENUE TYPE DIVERSIFICATION (º/º REVENUES) Parking Revenues Other Revenues Parque Arboleda 2% Variable Revenues 12% 22% 3%

Parque Caracoli 58% 19%

84% Fixed Revenues Parque La Colina

SOCIO-ECONOMIC LEVEL DIVERSIFICATION (º/º REVENUES)

100

57 14

Medium to High Income: Medium Income: 4 Medium to Low Income: Total 6 and 5 in Colombia and 3 in Colombia 2 and 1 in Colombia

Source: Parque Arauco. Based on socio-economic composition of community in which malls are located. 30 Future growth will come from pipeline and landbank

NEW PROJECTS

Project Type Format Estimated Total % Owned Total Total opening GLA m2 ownership GLA m2 investment investment date local USDMM currency Arauco Premium Develop. Outlet 2H17 13,000 100% 13,000 78,000 26 Outlet Bogotá Hotel Expansion Hotel 3Q17 N/A 100% N/A 17,500 6 Bucaramanga Total 13,000 100% 13,000 95,500 32

LANDBANK

Name M2 % ownership Total cost (local Total Cost (USDMM) currency) Neiva 49,537 100% 18,000 6

Valledupar 46,000 100% 30,000 10

Barranquilla 56,166 100% 76,000 26

Total Colombia 151,703 100% 124,000 42

Source: Parque Arauco 31 Project Arauco Premium Outlet Bogotá - Bogotá

ARAUCO PREMIUM OUTLET BOGOTÁ

Opening: 2H2017 Location: Sopó, Bogotá Type of mall: Outlet Total GLA: 13,000 m² Bogotá CHILE Total Investment: US$ 26 millones Owner: Parque Arauco (100%) Commercial %: 25% of contracts signed, 50% in negotiation

PERÚ

COLOMBIA

Source: Parque Arauco 32 Brands signed in Arauco Premium Outlet Bogotá 33 Bucaramanga Hotel Project

PARQUE CARACOLÍ Bucaramanga

Opening: 3Q2017 Location: Bucaramanga Type of project: Hotel N° of rooms: 104 CHILE Hotel Brand: Sonesta Total Investment: US$ 6 millones Owner: Parque Arauco (100%)

PERÚ

COLOMBIA

Source: Parque Arauco 34 Bucaramanga Hotel

Source: Parque Arauco 35 Landbank

Barranquilla Valledupar Name: Barranquilla M2: 56,166 Name: Valledupar % Ownership: 100% M2: 46,000 Total Cost: 26 % Ownership: 100% (MMUS$) Total Cost: 10 (MMUS$)

Neiva Name: Neiva M2: 49,537 % Ownership: 100% Total Cost: 6 (MMUS$)

Source: Parque Arauco [36] Colombia’s Shopping Center Industry

October 2017 Agenda

I. Competitive landscape

II. Sector dynamics

III. Rental vs. condominium

IV. eCommerce in Colombia

V. Globalization of Brands

[2] Agenda

I. Competitive landscape

II. Sector dynamics

III. Rental vs. condominium

IV. eCommerce in Colombia

V. Globalization of Brands

[3] 4 Parque Arauco has almost one million m², a 2% market participation in Latin America and a 8% market participation in the Andean Region

456 392 143

#5 5 Parque Arauco is the fifth largest operator in Colombia with a 3% market participation

MARKET SHARE IN COLOMBIA TOP 7 MARKET SHARE BY GLA

5,0% 3,3% Inmobiliaria Éxito 255.000 3,2% (11 assets) 2,8% 1,8% 2,8% Unico Outlet 169.000 1,3% (7 assets) Terranum 161.000 (4 assets)

As Construcciones 145.000 79,8% (5 assets)

Parque Arauco 142.500 (3 assets) Inmobiliaria Éxito As Construcciones Pactia Almacenes La 14 93.000 Unico Outlet Parque Arauco Others (1 assets) Terranum Almacenes La 14 Pactia 64.000 (5 assets)

Source: ACE Colombia, Parque Arauco analysis 6 Parque Arauco has improved its market share in a fragmented market

HISTORICAL MARKET SHARE

5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2010 2011 2012 2013 2014 2015 2016

Inmobiliaria Éxito Terranum As Construcciones Pactia Unico Outlet Parque Arauco Almacenes La 14

Source: ACE Colombia, Parque Arauco analysis 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%

Total # of 2 shopping Total m : malls: 214 4,942,791 57,9% 27,6%

33,5%

Large (>40,000) Medium ( 20,000-39,999) Small (5,000-19,999)

Source: ACE Colombia 8 Colombia has international developers

Brand

Owner Parque Arauco Falabella Spectrum Grupo Roble

Country Chile Chile Guatemala El Salvador

Assets Parque Arboleda El Castillo Fontanar (Bogotá) MultiPlaza (Bogotá) (Pereira) (Cartagena) Parque Caracolí (Bucaramanga) Parque La Colina (Bogotá) Projects Arauco Premium Manizales Medellín Outlet Bogotá Barranquilla Calí GLA (m2)¹ 142,500 40,000 57,000 65,000

(1) Rental Model GLA Source: ACE Colombia 9 well as strong local developers (part 1 of 2)

Brand

Owner Éxito Único Terranum (Estrategias Corporativas / Santo Domingo Family) Assets Viva Laurales Unico Cali Plaza Central (Bogotá) Viva Barranquilla Unico Dos Quebradas Jardín Plaza (Calí) Viva Villavicencio Unico Barranquilla Atlantis Plaza (Bogotá) Viva Sincelejo Unico Pasto Ideo Medellín Viva La Ceja Unico Villavicencio Viva Wajira Unico Yumbo Viva Las Palmas Unico Neiva Viva Fontibón Viva Buenaventura Viva Caucasia Viva Barrancabermeja Projects Viva Envigado Ideo Cali Viva Tunja GLA (m2)¹ 255,000 169,000 161,000

(1) Rental Model GLA Source: ACE Colombia 10 well as strong local developers (part 2 of 2)

Brand

Owner As Construcciones Almacenes La 14 Pactia (Conconcreto / Grupo Argos) Assets Buenavista Barranquilla Calima Bogotá Gran Plaza Soledad Buenavista Monteria Gran Plaza Pitalito Buenavista Santa Marta Gran Plaza Florencia Panorama (Barranquilla) Gran Plaza Ipiales Americano (Barranquilla) Gran Plaza Antares Gran Plaza Alcaraván Gran Plaza San Antonio Gran Plaza del Sol San Pedro Plaza (Neiva) Guatapurí Plaza (Valledupar) Projects Gran Plaza Bosa Gran Plaza El Ensueño GLA (m2)¹ 145,000 93,000 64,000

(1) Rental Model GLA Source: ACE Colombia Agenda

I. Competitive landscape

II. Sector dynamics

III. Rental vs. condominium

IV. eCommerce in Colombia

V. Globalization of Brands

[11] 12 GLA in Colombia has been growing on average at 7% in the last 5 years

EVOLUTION OF GLA IN COLOMBIA NUMBERS OF SHOPPING CENTERS IN COLOMBIA (TH M2) (#)

+7% +7% +6% +7% 5.000 214 188 198 204 4.000 158 166 139 152 3.000 121 133 2.000 1.000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ANNUAL VARIATION OF GLA ANNUAL GROWTH RATE (M2) (% CHANGE)

13% 12% 437.779 11% 383.599 10% 318.622 322.482 8% 268.965 216.372 6% 199.030 5% 5% 168.680 161.500 3% 4% 95.666

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: ACE Colombia 13 Shopping center sales have outpaced retail sales in Colombia

RETAIL SALES (EUROMONITOR) SHOPPING CENTER SALES (RADDAR/ACE COLOMBIA) (THUSD) (THUSD)

80.000 15.000 +6,1% +11,6% 60.000 10.000 40.000 5.000 20.000

0 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 RETAIL SALES GROWTH SHOPPING CENTER SALES GROWTH (% CHANGE) (% CHANGE)

16,9% 19,8% 18,9% 13,9% 11,5% 10,8% 7,1% 7,2% 5,6% 4,6% 5,9% 3,6%

2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016

Source: ACE Colombia / Raddar- Shopping Centerr Sales, Euromonitor- Retail Sales 14 Rental model malls are gaining market share in Colombia

% OF GLA BY PROPERTY TYPE IN COLOMBIA

14 17 18 19 20 22 26 Rental Model 11 11 13 Mixed Model 13 13 13 13 Condominium

75 73 69 68 67 65 61

2010 2011 2012 2013 2014 2015 2016

Rental 553,321 698,015 778,021 910,887 1,007,585 1,145,744 1,469,668

Mixed 434,752 451,656 561,904 623,238 654,931 677,031 734,834

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 15 New malls opening are predominately rental model

% NEW GLA IN COLOMBIA BY PROPERTY TYPE (% OF TOTAL GLA)

Rental Model 60,6% Mixed Model Condominium

33,4%

6,0%

New development GLA

Source: ACE Colombia Agenda

I. Competitive landscape

II. Sector dynamics

III. Rental vs. condominium

IV. eCommerce in Colombia

V. Globalization of Brands

[16] 17 Colombian shopping center industry is unique

Condominium Malls Rental Model Malls

. Several owners buy stores; most of them • Single owner lease stores Owner are retailers, some of them are investors that sublease the store • Construction is financed by pre-selling • Construction is financed by issuing Financing stores debt

• Sometimes construction materials and • Construction materials and equipment are Construction equipment are acquired thinking about acquired thinking about long term quality short term • Sometimes layout is not optimum since • Layout is defined by single owner that Layout construction companies minimize think about the customer experience common areas in order to maximize area afterwards to be sold • Sometimes commercial mix is not • Commercial mix is defined by criteria of Commercial optimum since it is defined by maximizing maximizing long term sales and revenues Mix money collected in selling process and tends to be optimum • Sometimes operational standard (i.e. • Operational standard (i.e. marketing Operational marketing efforts, cleaning and security, efforts, cleaning and security, window standard window display standard, etc.) is lower display standard, etc.) is higher

• Sometimes agreeing on capex between • Single owner define capex (growth and/or Capex 200 tenants can be challenging because of maintenance capex) thinking about the Free Riders long term Source: Parque Arauco 18 Case Study Pereira: Rental Sales vs. Condominium Sales

PEREIRA MALL SALES (USDMM)

0 2008 2009 2010 2011 2012 2013 2014 2015 2016

Parque Arboleda Condo. Mall 2 Condo. Mall 1 Condo. Mall 3

Source: Raddar / Parque Arauco Agenda

I. Competitive landscape

II. Sector dynamics

III. Rental vs. condominium

IV. eCommerce in Colombia

V. Globalization of Brands

[19] 20 Colombia has one of the lowest ecommerce penetrations in the region

INTERNET RETAIL AS % OF TOTAL RETAIL IN 2016

14,9%

10,5%

4,7% 4,0% 2,6% 2,5% 1,6% 1,1%

United United Argentina Brazil Mexico Chile Colombia Peru Kingdom States

Source: ICSC, Euromonitor 21 Retail Sales in Colombia have grown 6% in the last 5 years

% Retail Sales growth % Online Sales growth Online Sales (US$ billion) Retail Sales (US$ billion)

+3,6%

+6,3% 90 80 81,0 CHILE 69,8% 78,0 80 75,2 3,0 72,5 2,4 70 67,7 70,0 2,0 70 1,6 54,8% 63,1 1,1 1,3 60 58,7 55,3 0,9 60 52,8 0,7 49,9 50 0,3 0,5 50 0,2 44,2% 40 40 41,5% 31,9% PERÚ 23,3% 23,4% 30 30 22,5% 21,9% 20,8% 20 20 21,9% 16,9% 5,6% 5,9% 7,1% 7,2% 10 10 4,6% 3,0% 3,2% 3,2% 3,3% 3,2% 0 0 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E COLOMBIA

Source: Internet Retailing in Colombia, Euromonitor 22 Retail eCommerce concentration in Colombia is low

RETAIL SALES IN COLOMBIA

2011 2016E 2021E

Online Retail Online Retail Online Retail 0,4% 1,6% 3,6%

99,6% 98,4% 96,4% Retail Retail Retail

Source: Internet Retailing in Colombia, Euromonitor Agenda

I. Competitive landscape

II. Sector dynamics

III. Rental vs. condominium

IV. eCommerce in Colombia

V. Globalization of Brands

[23] 24 Colombia is still an underpenetrated market by global retailers

% OF TOP 100 LARGEST GLOBAL RETAILERS IN COUNTRY GLOBAL RETAILERS PRESENT IN COLOMBIA

46%

32% 27%

19% 14% 10%

9% 8% 8%

USA

Peru

Chile

Brazil

Mexico

Canada

Colombia Argentina

Source: Parque Arauco analysis Powers of Retailing by Deloitte 25 La Colina has a higher penetration of global brands than its competitors in Bogotá

PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES)

50 48% International Brand % 45 Parque La Colina 40 direct competitor 35 33% 30% 30 28% 25 23% 20

15 12% 12% 10 5 0 Parque Mall 1 Mall 2 Mall 3 Mall 4 Mall 5 Mall 6 La Colina

Source: Parque Arauco analysis of tenants in each mall 26 Parque Arboleda has a higher penetration of global brands than its competitors

PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES)

24 23% International Brand % 22 20 18 16 14 12 10% 10 9% 8 6% 6 4 2 0 Parque Arboleda Mall 1 Mall 2 Mall 3

Source: Parque Arauco analysis of tenants in each mall 27 Parque Caracolí has a higher penetration of global brands than its competitors

PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES)

25% 25 International Brand %

20 18%

15% 15

10 8%

0 Parque Caracolí Mall 1 Mall 2 Mall 3

Source: Parque Arauco analysis of tenants in each mall [28] Managing Parque La Colina

October 2017 Agenda

I. Introduction Parque La Colina

II. Commercial mix

III. Parque La Colina team responsibilities

V. Parque La Colina marketing activities

VI. Sustainability at Parque La Colina

Versión 16-10-2017 20:32[2] Agenda

I. Introduction Parque La Colina

II. Commercial mix

III. Parque La Colina team responsibilities

V. Parque La Colina marketing activities

VI. Sustainability at Parque La Colina

[3] PARQUE LA COLINA

• TotalParque investment La ofColina US$ 221 million • 2,900 m2 of vertical gardens • 63,000 m2 of GLA • 3,000 parking spots • 199 stores • 235 bicycle parking spots • Opening date: December 2016 • First openings of H&M, Crate & Barrel and • 13,262 m2 of park Purificación García in Colombia

Source: Parque Arauco [4] 5 Mall is located by Avenida Boyacá, an important transportation road in Bogotá

Source: Parque Arauco 6 Location and influence area

Source: Parque Arauco 7 Influence area

HOMES BY SOCIOECONOMIC LEVEL AVERAGE INCOME BY HOME (USD)

6 2.584 5 3% 2.133 18% 1.803 3 41% 1.195

38% 4 3 4 5 6

Average Household Clothing Spend Recreational Spend Socio Economic Class Population Homes Income (USD) (USD) (USD) 3 197,027 62,999 1,195 251 117 4 117,720 50,707 1,803 481 187 5 62,857 25,853 2,133 563 223 6 13,022 4,113 2,584 721 299

Source: Parque Arauco 8 Consumer profile

HOME 1 2 3 4 5+ 9.11% 17.3% 29.46% 28.8% 15.33% SIZE

SEX OF M F HEAD OF HOUSEHOLD 40.97% 59.03%

SEX OF MAIN M F SHOPPER 6.15% 93.85%

Soure: EGM Ola III 2016 M +25 NSE 456 Bogotá 9 Consumer profile

SHOPPING FREQUENCY IN SHOPPING MALLS

Weekly 22.3% Bi-weekly 13.4% Monthly 17.1% Ocassional 41.4%

CAR USE

Yes 78.1% No 21.8%

Soure: EGM Ola III 2016 M +25 NSE 456 Bogotá 10 Consumer profile

PURCHASES IN THE LAST 3 MONTHS

Women’s Women’s 81.2% Lingerie 56.8% 54.6% Books 51.7% Clothes Shoes

Men’s Children’s Children’s Men’s 30.0% Clothes 48.3% Clothes 35.6% Shoes 34.9% Shoes

Technology 21.4% Bathing 16.8% Suits

Soure: EGM Ola III 2016 M +25 NSE 456 Bogotá 11 Local competition

• 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 12 Local competition

Type of Mall Rental Condo Condo Condo Condo Condo Opening year 2005 2005 1977 1976 2006 2013 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 590 1000 800 3200 3200 2400 GLA ( m2) 12,500 54,000 34,800 53,000 70,000 57,000 Total Stores 65 313 62 360 495 240 Homecenter, Falabella and Falabella and Falabella and Falabella and Anchors Carulla Jumbo Jumbo Éxito Jumbo Jumbo

Source: Parque Arauco Agenda

I. Introduction Parque La Colina

II. Commercial mix

III. Parque La Colina team responsibilities

V. Parque La Colina marketing activities

VI. Sustainability at Parque La Colina

[13] 14 Commercial mix

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 15 First floor layout

Source: Parque Arauco 16 Second floor layout

Source: Parque Arauco 17 Third floor layout

Source: Parque Arauco 18 La Colina has a higher penetration of global brands than its competitors in Bogotá

PENETRATION OF GLOBAL BRANDS IN BOGOTÁ MALLS (% OF TOTAL STORES)

50 48% International Brand % 45 Direct competition 40 35 33% 30% 30 28% 25 23% 20

15 12% 12% 10 5 0 Parque Mall 1 Mall 2 Mall 3 Mall 4 Mall 5 Mall 6 La Colina

Source: Parque Arauco analysis of tenants in each mall 19 Brands in Parque La Colina

Source: Parque Arauco 20 Brands in Parque La Colina

Source: Parque Arauco 21

Agenda I. Introduction Parque La Colina

II. Commercial mix

III. Parque La Colina team responsibilities

V. Parque La Colina marketing activities

VI. Sustainability at Parque La Colina 22 Strategic Plan Parque La Colina

• 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 23 Target Consumer

Socio- economic level 4 to 6 in the North of Bogotá

Stylish Over 25

Female

Wife, friend, coworker, Brand- head of conscious household

Working 24 Parque La Colina Strategic Pillars

1. Positioning & Client Loyalty 2. Visitor Experience 3. Optimized Commercial mix 4. Operational

Excellence Strategic Pillars Strategic

Source: Parque Arauco 25 Center Manager

• 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 26 Center Manager Team

Commercial Lead

Administration Center and Finance Marketing Lead Lead Manager

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 27 Commercial Lead

• 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 28 Commercial Inputs

3° Commercial Input Potential interested 2°Commercial clients 4°Commercial Input Input Current projects for Special requests tenants and kiosks (discounts, remodels, (next openings) branding etc.)

1° Commercial 5° Commercial Input Center Input Commercial results Manager 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 29 Commercial Lead

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 30 Marketing Lead

• 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 31 Marketing Inputs

3° Marketing Input Newsletters 4° Marketing Input ° 2 Marketing Input Special project Future marketing advancement campaigns (Loyalty plan tenant support plan- etc.)

1° Marketing Input Center 5° Marketing Input Current campaign Budget control progress Manager

• 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 32 Operations Lead

• 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 33 Operations Inputs

3° Operations Input 2° Operations Various incidents Input 4° Operations Execution of Input maintenance Budget control plans

1° Operations 5° Operations Input Center Input Capex execution Manager 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 34 Administration & Finance Lead

• 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 35 Administration & Finance Inputs

3° Adm & Fin. Input Monthly results: sales, EBITDA- KPIs 2° Adm & Fin. 4°Adm & Fin. Input Input Collections Billing

5° Adm & Fin. 1° Adm & Fin. Center Input Input Contract Budget control Manager 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 Agenda

I. Introduction Parque La Colina

II. Commercial mix

III. Parque La Colina team responsibilities

V. Parque La Colina marketing activities

VI. Sustainability at Parque La Colina

[36] 37 Example marketing campaigns

Source: Parque Arauco 38 Example marketing campaigns

Source: Parque Arauco 39 Example marketing campaigns

Source: Parque Arauco Agenda

I. Introduction Parque La Colina

II. Commercial mix

III. Parque La Colina team responsibilities

V. Parque La Colina marketing activities

VI. Sustainability at Parque La Colina

[40] 41 Parque La Colina Sustainable Features

Source: Parque Arauco 42 Social Management Plan at Parque La Colina

SOCIAL MANAGEMENT PLAN AT PARQUE LA COLINA

From the very beginning of the construction process, we required The following are highlights of the Social Management Plan: Constructora Colpatria to include a Social Management Plan to Information Program: This program included presentations on the handle neighbors' observations and inquiries in a timely manner. project's characteristics and scope to neighboring communities. The 31-month plan (April 2014 to December 2016) included a The Social Management Plan and mitigation measures were also permanent liaison for social issues, responsible for managing areas presented. like: • Coordinating and implementing the Social Management • Community Service Program: This program formalized Plan. communication mechanisms and ensured appropriate and • Participating on social, socio environmental and/or technical timely resolution of the inquiry response process. committees. • Attending to and monitoring permits. • Disclosure Program: This program included an inventory of the • Maintaining an ongoing relationship with the different properties adjacent to the spaces to be intervened. This project areas. program aimed to assess objectively and on a case-by-case • Preparing presentations for scheduled community meetings. basis any inconveniences that the construction could cause • Overseeing the community service point. for neighboring lots. It also included publication of the • Drafting and sending informational memos. procedure for escalating complaints as well as the established • Training project personnel. community information channels and provided updates on • Responding to and resolving citizen observations and project characteristics and progress. inquiries. • Taking part in community activities. • 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 [43] Organizational Improvements

October 2017 AGENDA I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

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

Versión 10/16/2017 4:06[3] PM 4 Purpose, Mission and Values 5

AGENDA

I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

Versión 10/16/2017 4:06 PM 6 Revenues have grown importantly in all three countries

CONSOLIDATED REVENUES (USDM)¹¯² CHILE REVENUES (USDM) ¹¯²

+13% +12% +9% +9% 260 157 243 233 151 145 222 124 139 191 104 115 141 163

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

PERU REVENUES (USDM) ² COLOMBIA REVENUES (USDM) ²

+40% +19% +80,0% +4% 27 68 75 73 76 51 16 15 17 15 32 36 12 5

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM (1) 2012 numbers do not include Marina Arauco 2Q16 2Q17 2Q16 2Q17 (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 7 Fixed, variable and parking revenues have contributed to consolidated revenue growth

CONSOLIDATED REVENUES (USDM)¹¯² FIXED REVENUES (USDM)

+14% +15% +12% +12%

260 189 222 243 233 159 175 168 191 138 163 115 132 94

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

VARIABLE REVENUES (USDM) OTHER REVENUES (USDM)

+10% +17% +10% 11% 40 38 36 32 33 5 29 30 29 5 5 25 26 23 26 5 9 10 20 18 8 8 5 5 3 7 7 5 20 24 23 25 10 11 14 2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM (1) 2012 numbers do not include Marina Arauco 2Q16 2Q17 2Q16 2Q17 (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco Energy Parking Other 8 Parque revenue stream is stable

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%

2012 2013 2014 2015 2016 LTM 2Q16 LTM 2Q17

Fixed Rent Variable Rent Energy Parking Others

Source: Parque Arauco AGENDA I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

Versión 10/16/2017 4:06[9] PM 10 Sustainability

Source: Parque Arauco 11 Safety and Security

Today

Progress review Divisional Strategic Implement critical findings alignment safety & security presentation workshop elements

People and process safety & security analysis Diagnostic Site visit report Fundamental safety & security element diagnostic VAC surveys Change disposition interviews Executive interviews

6 months

Current Maintain Understand Transition Implement

Safety and Security Culture at Parque Arauco Security Parque at Culture and Safety state changes future state plan changes evaluation

First evaluation stage Second implementation stage Source: Parque Arauco / DuPont 12 Process and Center of Excelence

• We have identified 4 macro process • We have identified 341 process

Source: Parque Arauco 13 Talent in Parque Arauco

• We have worked to improve the quality of professionals in our organization.

Source: Parque Arauco 14 Share Services Center

• 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 15 Technology and Innovation

• 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 16 Trade off

Higher cost

Lower cost

• Talent • Saftey & security • Improved quality • Economies of scale • Standardized processes • Better controls

Source: Parque Arauco 17

AGENDA

I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

Versión 10/16/2017 4:06 PM 18 Consolidated gross margin is mainly flat in LTM 2Q17

CONSOLIDATED REVENUES (USDM)¹¯² COST OF SALES (USDM) ²

+14% +12% +15% +9%

57 59 260 51 54 222 243 233 191 43 163 34 132 30

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

COST OF SALES (% REVENUES) GROSS MARGIN (%)

23% 23% 24% 23% 23% 78,9% 79,2% 77,3% 76,9% 76,5% 76,6% 77,1% 21% 21%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 19 Chile

CONSOLIDATED REVENUES (USDM)¹¯² COST OF SALES (USDM) ²

+14% +9% +13% +8% 157 34 139 151 145 31 30 124 29 104 115 25 18 19

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

COST OF SALES (% REVENUES) GROSS MARGIN (%)

21,4% 83,1% 19,9% 20,6% 20,9% 20,5% 82,4% 80,1% 79,4% 79,1% 79,5% 78,6% 17,6% 16,9%

CONSOLIDATED REVENUES (USDM)¹ COST OF SALES (USDM) ¹

+19% +4% +16% +4% 75 76 19 19 68 73 17 18 51 13 10 32 36 9

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

COST OF SALES (% REVENUES) GROSS MARGIN (%)

72,4% 74,8% 75,7% 74,4% 74,7% 75,2% 27,6% 28,7% 71,3% 25,2% 24,3% 25,6% 25,3% 24,8%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 21 Colombia

CONSOLIDATED REVENUES (USDM)¹ COST OF SALES (USDM) ¹

+18% +40% +80% +17%

27 7 6 6 6 6 16 15 17 15 4 12 3 5

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

COST OF SALES (% REVENUES) GROSS MARGIN (%)

73,7% 49,8% 66,1% 62,8% 61,9% 42,0% 59,2% 58,0% 40,8% 38,1% 33,9% 37,2% 50,2% 26,3%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 22 Cost of sales efficiency measures

• Bidding Process Improvement Maintenance, • Competitive bidding process • SLA definitions Cleaning and • Standardized maintenance model across all three countries Security • Establish standardized maintenance model • First focus on vertical transportation, climate, and facility management

• Economies of scale • Opening of La Colina with same sized administration Personnel • Arauco Coronel is managed by Arauco Chillán team • Professionalization of Shared Service Center • Improved roles, responsibilities and processes

• Energy efficiency projects • Renegotiation of energy contracts in Chile • Solar panels in Parque Lambramani Energy

Source: Parque Arauco 23 Cleaning and Security Service Level Agreements

• 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 24 Maintenance Strategy Project

• We are working with an external consultant to help us develop a best in class maintenance model.

Maintenance Model Methodology Maintenance model for critical processes

• Define an agreed upon • Maintenance model scalable maintenance definition for critical model for all of processes assets

Infrastructure and Service org. structure Improvement opportunity identification

• Define an agreed upon • Improve reliability and scalable maintenance quality of information model for all of related to asset assets maitenance

Source: Parque Arauco / Matrix 25 Energy costs have improved as a % of revenues

ENERGY COSTS (USDM)¹ ENERGY COSTS (% OF REVENUES) 10,4% 9,9% 10,1% 9,6% 9,1% 8,7% +16% +2% 8,2%

24 24 25 22 17 12 13

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 REVENUES BY COUNTRY (%) ENERGY COSTS BY COUNTRY (%)

Colombia 10,3% Colombia 17,3%

Peru 29,1% 53,2% Chile 60,6% Chile 29,6% Peru

(1) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 26 Corporate environmental management plan

1 2 3 4

Identification Base line KPIs and Evaluation of gaps and goals diagnostic opportunities and follow up

Corporate environmental management procedures. Efficiency committees in Chile, Peru and Colombia.

Source: Parque Arauco 27

AGENDA

I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

Versión 10/16/2017 4:06 PM 28 Admin. Expenses have decreased importantly

CONSOLIDATED REVENUES (USDM) 1,2 ADMINISTRATIVE EXPENSES (USDM) 1,2

+13% +10% +12% +7%

260 23 23 24 23 24 222 243 233 20 191 15 141 163

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV) 1,2,3 12,4% 12,2% 90,0% 87,6% 87,8% 89,8% 90,3% 90,1% 90,6% 10,2% 10,0% 9,7% 9,9% 9,4%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) 2012 numbers do not include Marina Arauco (3) Admin exp. margin= (revenues-SGA)/ revenues (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 29 Chilean admin. expenses have improved over time

CONSOLIDATED REVENUES (USDM) 1 ADMINISTRATIVE EXPENSES (USDM) 1

+9% +6% +8% +5% 13 151 145 157 12 12 12 124 139 11 11 104 115 9

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV) 1,2

10,8% 10,6% 91,3% 89,2% 89,4% 91,9% 92,2% 92,2% 92,4% 8,7% 8,1% 7,8% 7,8% 7,6%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) Exchange rate as of June 30,2017 1USD= 660.05 (2) Admin exp. margin= (revenues-SGA)/ revenues Source: Parque Arauco 30 Admin. Expenses in Peru have increased less than the increase in revenues

CONSOLIDATED REVENUES (USDM) 1 ADMINISTRATIVE EXPENSES (USDM) 1

+15% +19% +4% +2% 75 76 9 9 10 10 68 73 51 7 5 5 32 36

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV.) 1,2

15,0% 15,1% 85,0% 84,9% 86,6% 86,2% 87,4% 86,8% 87,0% 13,8% 13,4% 12,6% 13,2% 13,0%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) Exchange rate as of June 30,2017 1USD= 660.05 (2) Admin exp. margin= (revenues-SGA)/ revenues Source: Parque Arauco 31 Admin. Expenses in Colombia have significantly improved with the opening of Parque La Colina

CONSOLIDATED REVENUES (USDM) 1 ADMINISTRATIVE EXPENSES (USDM) 1

+40% +80% +14% +38% 27 3 3 2 2 16 15 17 15 2 2 12 1 5

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

ADMINISTRATIVE EXPENSES (% OF REVENUES) ADMINISTRATIVE EXPENSES MARGIN (% OF REV.) 1,2

26,6% 86,1% 86,1% 86,7% 89,9% 80,3% 79,8% 73,4% 19,7% 20,2%

13,9% 13,9% 13,3% 10,1%

PROFESSIONAL FEES (USDM) 1,2 PROFESSIONAL FEES (% OF REVENUES) 1 3,7% 3,3% 3,2% 3,1% +17% 3,0% 3,0% +7% 2,7% 8 8 7 7 7 5 4

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

REVENUES BY COUNTRY (%) PROFESSIONAL FEES BY COUNTRY (%)

Colombia Colombia 10,3% 6,5%

Peru 32,3% Peru 29,1% 60,6% 61,2% Chile Chile

(1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 33 Insurance costs have gone down

INSURANCE COST (USDM) 1,2 INSURANCE COST (% OF REVENUES) 1 2,5% 2,5% 2,3% +4% 2,1% -1% 1,8% 1,6% 1,6% 4 5 4 4 4 4 3

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 REVENUES BY COUNTRY (%) INSURANCE COST BY COUNTRY (%)

Colombia 10,3% Colombia 17,9%

Peru 29,1% Peru 17,8% 60,6% Chile 64,3% Chile

(1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 34 Improvements in Cost of Sales and Admin. Expenses has improved the EBITDA margin

CONSOLIDATED REVENUES (USDM) 1,2 COST OF GOODS SOLD + ADMIN. EXPENSES (USDM) 1

+13% +12% +13% COGS +8% 260 SG&A 81 83 222 243 233 74 77 66 24 163 191 54 24 23 141 45 23 23 15 20 51 57 54 59 30 34 43

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17

COST OF GOODS SOLD + ADMIN. EXPENSES (% REVENUES) EBITDA MARGIN (% REVENUES)

69,9% 69,4% 68,8% 69,0% 68,8% 70,0% 0,25 68,0%

0,20

0,15

0,00 2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) 2012 numbers do not include Marina Arauco (2) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco 35

AGENDA

I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

Versión 10/16/2017 4:06 PM 36 Improvements in the Colombian and Peruvian EBITDA margins have improved the corporate EBITDA margin

CHILE EBITDA MARGIN PERU EBITDA MARGIN

73,6% 75,0% 72,7% 73,7% 73,4% 73,9% 73,0% 63,7% 63,5% 64,5% 63,2% 65,6% 60,2% 58,8%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 COLOMBIA EBITDA MARGIN CORPORATE EBITDA MARGIN1

64,9% 69,9% 69,4% 68,0% 68,8% 69,0% 68,8% 70,0% 50,0% 46,9% 43,9% 46,4% 45,7%

24,1%

2012 2013 2014 2015 2016 LTM LTM 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 (1) 2012 numbers do not include Marina Arauco Source: Parque Arauco 37

AGENDA

I. Purpose, Mission and Values II. Top Line Growth III. Organizational Improvements IV. Cost of Sales V. Administration Expenses VI. EBITDA Margin VII. Conclusions

Versión 10/16/2017 4:06 PM 38 Conclusions

• 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 [39] Mixed Use Rationale for Malls

October 2017 Agenda

I. Real Estate Types and Diversification

II. Growth opportunity analysis for Parque Arauco

III. Mixed use in Parque Arauco

IV. Parque Arboleda Office Tower

[2] 3 In developed markets, like the USA, the real estate pie includes other type of real estate assets that are still small in Latin America

MARKET CAP % (US$ Billion) Weight over total x% 13% 6% 7% 21% 13% 5% 11% 24% 846 201 • In the USA, the Real 96 45 Estate Sector has a USA 111 market cap of US$ 846 billion. 177 55 111 50 • In the USA there are two types of real ResidentialIndustrial Hotel Retail Offices Self Health Other Total estate that are not Storage retail that make up 79% of the market, 0% 17% 3% 70% 9% 0% 0% 1% 24 and which include 0 2 offices, residential, health, hotel and industrial, among Latin others. America 17 • In Latin America, only 30% of the market is 1 4 made up of real estate that is not retail. ResidentialIndustrial Hotel Retail Offices Self Health Others Total Storage 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. 4 Approximately a third of the real estate companies in the world are diversified

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%

Diversified 31,7% #192 Retail 24,2% #80

6,7% 13,0% Health 3,9% #18 Residential #60 1,8% 10,7% Hotel #19 Industrial / Offices Offices #10 #53

Source: FTSE Real Estate Global Index Agenda

I. Real Estate Types and Diversification

II. Growth opportunity analysis for Parque Arauco

III. Mixed use in Parque Arauco

IV. Parque Arboleda Office Tower

[5] 6 Rationale for entering into new sectors

RATIONALE FOR ENTERING INTO NEW SECTORS

• Each property type has its own operational complexities and risk profile. Retail is on the complex side of Operation the spectrum, and therefore we believe we can learn to manage other simpler property types Complexity • In some property types that are too complex such as the lodging sector, operations are usually separated from the landlord

• Some property types offer synergies to the Company's retail portfolio Client • For example, hotel properties can drive traffic to the Company's malls Synergies

• Most property types have similar economic drivers than retail real estate Economic • One exception is lodging real estate, which has very different economics than retail real estate Drivers

• Parque Arauco has 58% and 19% of its total NOI in Santiago and Lima, respectively Market • Strong knowledge in its core markets may provide the Company with strategic opportunities in other Specialist property types

• Pursuing mixed-use projects is a way of improving the profitability of existing assets Vertical Growth • 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 Source: Green Street Advisors 7 Operations

Type of Real Estate Does real estate company THE COMPLEXITY AND OPERATIONAL RISK ARE DIFFERENT FOR EACH TYPE operate asset? OF REAL ESTATE

Residential Yes

• The operational complexity of each Industrial Depends type of real estate is different. Hotel No • Depending on the type of real estate, Retail Yes the Company should decide whether or not to externalize the operation. Offices Yes

Self Storage Yes • In hotel real estate, normally the owner of the asset does not operate Health Depends the hotel.

Source: Parque Arauco 8

Type of Real estate Final client amount of synergies Non-existent Low Medium High Very High

Residential

• Client synergies: Some types of real Industrial estate have synergies with retail real Hotel estate.

Offices • The types of real estate that have the most synergies in terms of traffic are Self Storage hotel, health and offices. Health

Source: Parque Arauco 9

Type of Real Estate Similar drivers?

Residential P • The majority of other types of real estate have economic and financial drivers that Industrial P are similar to retail real estate.

Hotel O • In general, other types of real estate have Offices P similar drivers, especially if the operation is externalized. Self Storage P • An exception to this is hotel real estate Health P which has higher volatility due to the shorter duration of contracts.

Source: Parque Arauco 10 Implicit cap rate in other real estate transactions

AVERAGE STABILIZED PROPERTY ACQUISITION CAP RATES FOR 1H 2017 IN USA

7,8% 7,3% 7,2% 6,7% 6,7%

4,5%

Suburban Power Neighborhood Central Industrial High Street Office Centers Malls Business Retail District Office

Source: CBRE North America Cap Rate Survey 1H 2017. 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 Lima¹: 18% del NOI de Parque Arauco de Parque Arauco

(1) Santiago represents 78% of Chile NOI, and Lima represents 65% of Peru NOI. Source: Parque Arauco 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- 1983 Parque Arauco Kennedy- 2016

Source: Parque Arauco 13 Vertical Growth Example

• 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 Agenda

I. Real Estate Types and Diversification

II. Growth opportunity analysis for Parque Arauco

III. Mixed use in Parque Arauco

IV. Parque Arboleda Office Tower

[14] 15 Parque Arauco already has examples of offices in our malls

Examples of offices developed by Parque Arauco:

Chile • Parque Arauco Kennedy

Colombia • Parque Arboleda • Parque Caracolí

Source: Parque Arauco 16 Parque Arauco already has examples of clinics in our malls

Examples of clinics developed by Parque Arauco:

Chile • Parque Arauco Kennedy • Arauco Quilicura

Peru • MegaPlaza Norte

Source: Parque Arauco 17 Parque Arauco already has examples of hotels in our malls

Examples of hotels developed by Parque Arauco:

Chile • Arauco San Antonio

Colombia • Parque Caracolí

Source: Parque Arauco Agenda

I. Real Estate Types and Diversification

II. Growth opportunity analysis for Parque Arauco

III. Mixed use in Parque Arauco

IV. Parque Arboleda Office Tower

[18] 19 Office tower in Parque Arboleda

Year Parque Arboleda opened: 2010

Year Arboleda offices opened: 2012

Office space: 7,700 m2

Source: Parque Arauco 20 Parque Arboleda Office Tenants

Source: Parque Arauco 21 Office tower in Parque Arboleda

PARQUE ARBOLEDA OCCUPANCY PARQUE ARBOLEDA REVENUES (THUS) 1

+27.2% +9.2% 8.342 8.583 7.405 7.858 6.556 94,2% 100,0% 98,7% 79,2% 40,6%

2014 2015 2016 LTM 2Q16 LTM 2Q17 2014 2015 2016 LTM 2Q16 LTM 2Q17

OFFICE REVENUE (THUS) 1 OFFICE REVENUES / TOTAL REVENUES

8,5% 8,7% 8,1% 7,9% +49.3% -1% 6,9% 630 678 681 675 454

2014 2015 2016 LTM 2Q16 LTM 2Q17 2014 2015 2016 LTM 2Q16 LTM 2Q17 (1) Exchange rate as of June 30,2017 1USD= 660.05 Source: Parque Arauco [22] Parque Arboleda Overview

October 2017 2

Agenda

I. Introduction to Parque Arboleda

II. Historical figures

II. Target audience

Versión 16-10-2017 20:38 3

Agenda

I. Introduction to Parque Arboleda

II. Historical figures

II. Target audience 4 Pereira

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 5 Strategic Rational for project

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 6 Location

Parque Arboleda 7 Socio-economic diversification

Parque Arboleda

Socio-Economic Level

Low

Middle-Low

Middle Middle-Upper Upper

Source: Parque Arauco 8 Market

Grocery stores and Homcenter

Existing shopping malls

Future expected shopping malls

Services

Carrefour Airport

Éxito

Parque Arboleda Unicentro Homecenter and Alkosto Grocery store Bus station

Source: Parque Arauco 9

Agenda

I. Introduction to Parque Arboleda

II. Historical figures

II. Target audience 10 Historical figures

GLA (M2) OWNERSHIP (%) +1,2% +19,1% 40.500 40.500 41.000 50% 50% 50% 34.000 34.000 34.000 33.000 34.000 33% 33% 33% 33% 33%

2011 2012 2013 2014 2015 2016 LTM LTM 2011 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 OWNED GLA (M2) OCCUPIED GLA (M2)

+1,2% 0,8% +116,2% 27,2% 22.275 22.275 22.550 38.304 38.730 39.056 18.150 30.124 28.926 31.620 30.718 30.641

10.302 10.302 10.302 9.999

2011 2012 2013 2014 2015 2016 LTM LTM 2011 2012 2013 2014 2015 2016 LTM LTM Source: Parque Arauco 2Q16 2Q17 2Q16 2Q17 11 Historical figures

TENANT SALES (USDM) 1 REVENUES (USDM) 1 +3,8% +9% +73,2% +116% 74 72 75 8 9 68 7 8 59 7 49 53 6 43 5 4

2011 2012 2013 2014 2015 2016 LTM LTM 2011 2012 2013 2014 2015 2016 LTM LTM 2Q16 2Q17 2Q16 2Q17 EBITDA (USDM) 1 EBITDA MARGIN (% REVENUES) +14,4% +122,4% 7 7 85% 85% 6 78% 78% 75% 80% 76% 80% 5 5 6 4 3

2011 2012 2013 2014 2015 2016 LTM LTM 2011 2012 2013 2014 2015 2016 LTM LTM (1) Exchange rate as of June 30,2017 1USD= 660.05 2Q16 2Q17 2Q16 2Q17 Source: Parque Arauco 12

Agenda

I. Introduction to Parque Arboleda

II. Historical figures

II. Target audience 13 Parque Target Audience

Socio- Parque Arboleda is the meeting economic level 5 point for the city, which is always Stylish innovative and modern with Married comfortable infrastructure, which has the objective to give the best experience, guarantee client satisfaction, both for the visitors and Female the brands in the mall, with Decisive Local communication that focuses on a stylish client. Parque Arbolea is an exclusive mall with fun activities for Everyday 30-45 the whole family. woman years old 14