2008
annual report
ANNUAL REPORT
PARQUE ARAUCO
2008
PARQUE ARAUCO
an animal on the move In 2008, we completed our entry into new markets, which meant adapting to different realities to understand what each sector of the public was looking for, expecting and needing. Today we can say that we were able to do what we had set out to do in this stage: GROW. And with it, we also CHANGED. We have been exploring new territories, attentive and willing to understand the behavior of consumers in Colombia, Peru and Chile. WHAT DO THEY DO, WHAT ARE THEIR CONCERNS, WHAT DO THEY NEED? This information is relevant if you want to build a proposal of value for them.
flexible
We are a flexible animal: Reality is a challenge and is
always forcing us to adapt; otherwise, we would not grow as an organization. We cannot help it. Every day that goes by, every new challenge we face—the consumer, the competition, the surroundings, the environment and the market in general—are a call to adapt if we want to be successful.
attentive
We are an animal that watches attentively: We concentrate on each market where we do business so as to assimilate how it works and thus be able to interpret, anticipate and satisfy the needs of geographic sectors that behave differently from ours.
learn – respond
We are an animal capable of learning and responding: We can adapt what we believe to be the best practices in the industry to the interests of the different sectors of public because we learn. We always give them a unique experience in each of the markets where we do business.
aligned
We are aligned: Alignment and balance among all our projects guarantees that the plans underway will make sense, be clear, and contribute to the same strategic objectives.
TODAY WE CAN SAY THAT WE WERE ABLE
TO DO WHAT WE HAD SET OUT TO DO IN THIS STAGE: GROW. AND WITH IT,
WE ALSO CHANGED
milestones in 2008: consolidation and growth
06
24
brief history
08
relevant indicators
26
where we are in the region
our administration: operating excellence
message from the chairman
board of directors and management
2009: future challenges
parque arauco: much more than just shopping
information on the company
12
38
16
42
20
46
2008
table of contents
WE LAID THE FOUNDATIONS FOR A NEW PARQUE ARAUCO
THAT IS BIGGER, MORE REGIONAL, MORE COMPETITIVE, PROFITABLE AND GIVES
OUR PEOPLE GREATER OPPORTUNITIES
51%
growth in EBITDA in the 4th quarter
16%
growth in GLA we now have 669,620m2
Our EBITDA in 2008 rose
33%
compared to 2007
We increased our profits
77%
compared to 2007
Parque Arauco became one of the companies forming the Selective Stock Price Index *
(IPSA)
indice de Precios Selectivo de Acciones
*
sales by stores in our malls rose
11%
in comparison to 2007
We secured long-term financing for our projects at
historic rates
239
million people shopped with us in 2008
Our consolidated income rose
36%
We set up teams in
peru and colombia
with respect to 2007
milestones in 2008: consolidation and growth
01
DURING 2008, WE CONSOLIDATED INTO
AN IMPORTANT
SHOPPING CENTER DEVELOPER
IN LATIN AMERICA
consolidated revenues
consolidated ebitda
millions of pesos – dec 2008
2004
2005
20 06
2007
2008
2005
2006
2 8 ,6 95
23 ,7 2 1
3 8 ,20 2 2004
2 2, 26 0
2 1 ,5 2 3
5 0 ,1 5 7
3 9 ,8 9 5
3 6, 38 8
3 4, 92 3
6 8, 27 1
millions of pesos – dec 2008
2007
2008
2004
2005
20 06
2007
2008
2004
2005
2006
2007
239, 248
183, 417
159, 103
144, 123
136, 572
669, 620
0 0 0 ’s o f v i s i t o r s – d e c 2 0 0 8
577, 570
visitors annually
520, 985
435, 360
456, 642
total GLA
*GLA:
*
square meters – dec 2008
2008
GROSS LEASABLE AREA
02
relevant indicators
2008
2008
chile
peru
· Shopping centers: 7 – Parque Arauco Kennedy, Arauco
· Shopping centers: 1
Maipu, Plaza El Roble, Mall Manna Arauco, Mall Center
Megaplaza Norte
Curico, Paseo Arauco Estacion, Arauco Express Pajaritos
· Total sales: US$253 million
· Total sales: US$1.018 billion
· GLA: 71,495 m2
· GLA: 365,466 m
· Visitors in the year: 35 million
2
· Visitors in the year: 131 million
We completed our entry to Colombia, we began the construction of a new project in Peru and we improved our presence in Chile by the purchase of Mall Paseo Estacion—now called Paseo Arauco Estacion--, by the construction of a stripcenter, the commencement of the project in San Antonio and the enlargement of two of our malls.
2008
2008
argentina
colombia
· Shopping centers: 10 Abasto, Alto Palermo, Alto Avellaneda, Paseo Alcorta, Patio Bullrich, Alto Noa, Buenos Aires Design, Mendoza Plaza, Alto Rosario, Cordoba Shopping · Total sales: US$1.175 billion · GLA: 232,659 m2 · Visitors in the year: 74 million
· •Construction of the first shopping center in the city of Pereira, estimated to open in the 1st half of 2010.
02
relevant indicators
OPERATING EXCELLENCE IS DOING MORE, IN ADVANCE
AND BETTER. IT IS CONTINUING
TO CONQUER OUR STORE LESSEES, VISITORS,
SHAREHOLDERS AND SUPPLIERS EVERY DAY
our administration: operating excellence
03
OPERATING EXCELLENCE what we want to attain Operating Excellence is doing more, in advance and better. It is continuing to conquer our store lessees, visitors, shareholders and suppliers every day. It is making our administration even more efficient by reducing expenses, supporting our investment projects well and completing our plans efficiently. why do we always aspire to operating excellence?
· The
best commercial mix and an efficient and unique
buying experience to surprise and enchant the end consumer. In 2008, visitors to Arauco Maipu rose 28%
Because
OPERATING
EXCELLENCE
gives
us
better
performance standards in the business and in labor, safety and environmental aspects.
because of its enlargement.
· Prime
retailer operations because of the number of
shoppers, infrastructure and the quality of service. We improve our processes, we increase productivity and competitiveness, which translates into better results for the company and into the attainment of our strategic
In 2008, Parque Arauco inaugurated its first stripcenter in the borough of Maipu, Arauco Express Pajaritos, thus diversifying its formats.
objectives. COST OPTIMIZATION AND OPERATING EFFICIENCY
How will we do it?
· Operating efficiency is maximized through cost synergies
Operating Excellence implies travelling a long road towards the following strategic cores
among operators. · ENERGY EFFICIENCY PLAN: A central control system that combines smart management and high technology to
RETAILERS AND END CUSTOMER
make energy consumption more efficient and attenuate
· A differentiation on the market through new concepts that mark trends in the industry:
operating costs. During 2008, different measures were implemented in the company’s malls to achieve savings
Launching the
of around 10% monthly on power, equal to 675 GWH
Boulevard, Design Floor and innovative services for
throughout the entire effort or to the consumption of
shoppers.
31,500 light bulbs.
03
our administration
15
order to align them with the objectives of Parque
· SAP:
Arauco.
_ We added SAP to help consolidate our expansion, growth and leadership. It is a German technology
information
· BALANCED SCORECARD: This year we included a tool
systems in all our shopping centers and keeps the
that defines and monitors the performance objectives of
businesses of the group on line in Chile and in
Parque Arauco. The tool deploys the corporate strategy
other markets.
in concrete objectives towards each of the people
platform
that
homologates
the
working for Parque Arauco S.A. _ The project began with Parque Arauco Chile and we will be adding it in each market. This will keep
· FINAL ORGANIZATIONAL CLIMATE MEASUREMENT:
management information in order and decisions will
We underwent an organizational climate study.
be made more efficiently.
The results have helped us focus on the aspects where we must improve in order to attain operating excellence.
DEVELOPING THE HUMAN TEAM
· We
have organized a group that is motivated and
GROWTH
prepared, marked by creativity, customer service and great teamwork.
· The development of profitable projects in niches where we are preferred.
· PERFORMANCE MANAGEMENT MODEL: In June of
Consolidation of Arauco Maipu.
2008, we began to develop a performance management model for the company’s human capital. The objective of this tool is to foster a “High-Performance Culture” throughout the company, which is achieved by:
· We
dare to implement new formats and concepts in
high-value segments. Mall Arauco del Pacifico in San Antonio and Arauco Express Pajaritos in Maipu.
_ Providing feedback to people on their performance, _ Managing talent in teams, _ Encouraging clarity and transparency, _ Putting employees in the core of the business in
· We
take advantage of opportunities to purchase
operations. Mall Paseo Estacion, now Parque Arauco Estacion.
PAGE
ANNUAL REPORT
PARQUE ARAUCO
2008 WAS MARKED BY THE GROWTH
IN OUR OPERATIONS
AND THE COMPANY’S CONSOLIDATION AS AN
IMPORTANT DEVELOPER
OF SHOPPING CENTERS IN LATIN AMERICA
04
message from the chairman
Dear shareholders: On behalf of the Board of Directors and everyone forming a part of Parque Arauco S.A., it is my great pleasure to present the Annual Report and Financial Statements for 2008, a year that was marked by the growth in our operations and the company’s consolidation as an important developer of shopping centers in Latin America. The strategy in 2008 concentrated on maximizing the profitability of Parque Arauco S.A. We tried new formats, focused heavily on the structure of our teams and grew in the different markets where we do business. We can say today that these initiatives were successful, created value for our company and prepared it to face the future from a sound financial position. The retail industry is confronting significant changes today. We are living troubled times that require us to be more competitive, innovative and dynamic, to anticipate and be the first to provide what our store lessees and customers need. In this context, we must be especially responsible and prudent about the speed at which we implement the projects we have announced. The new initiatives will be aligned to the new market conditions, to the new needs of retailers and to the willingness of our local partners. Parque Arauco has already adopted a position in strategic locations in Chile, Peru and Colombia that will undoubtedly lead to new undertakings of value in the medium term. We are at ease and we trust that we will find the right time to continue with the success of the operations we have founded throughout our 26 years of existence. During the 2008 fiscal year, we were able to consolidate, with earnings totaling 11.106 billion Chilean pesos, which represented a 77% increase in comparison to 2007.
These results confirm the progress that our strategy has achieved nationally and internationally. The GLA rose 16% and the EBITDA grew 33%, by $38.202 billion Chilean pesos, as the operations in Chile and Peru performed well and all of the company’s business units improved operationally. In Chile, we completed the remodeling of Arauco Maipu, the new Arauco Express Pajaritos Stripcenter and we have progressed significantly in the Arauco del Pacifico shopping center in San Antonio. On the international scene, we are proud to have strengthened our presence in Peru. We concluded the second stage of the 10,000 m2 enlargement of Megaplaza Norte, where sales rose 29%. During 2009, we expect to begin construction of a new development in Chorrillos, Lima. In Colombia, we were able to complete our entry through the Alameda project, a 40,000 m2-GLA shopping mall that is under construction in the city of Pereira. In Argentina, our shopping mall business evolved favorably, but the credit business was impacted by the declining economic outlook. However, we have designed a strategic plan to recover the financial equilibrium in this unit that is already yielding fruit. We have progressed greatly in the construction of the eleventh shopping mall in Argentina, Dot Buenos Aires, one of the more significant developments for the industry in the Saavedra Area. The investment will total approximately 140 million dollars and we expect to inaugurate it in the early part of the second half of 2009. So, our achievements are a reflection of the great potential of actual operations and the consolidation of our future projects. The growth of Parque Arauco S.A. this fiscal year came largely
04
message from the chairman
19
from the Arauco Maipu mall after its leasable area was nearly doubled because of the enlargement and remodeling. This was supplemented by Paseo Arauco Estacion starting in May 2008. The leasable area of this mall was nearly doubled by including two anchor stores in the fourth quarter and more than 50 small stores. Added to this is the operating income of Megaplaza Norte (in local currency), which rose 36%, a reflection of how the business was fortified and of the increase in leasable area during 2007 and 2008. Moreover, cumulative revenues in the year grew 36%, also due to the consolidation of Paseo Arauco Estacion and Plaza El Roble as well as the increase in income from all other shopping centers that are consolidated with Parque Arauco S.A. We must also recall that during 2008, the company successfully placed a bond issue and signed a syndicated loan for approximately UF 6,000,000. The spreads and financial costs were historic. These resources are being used to finance the investment plan. In the first half, existing loans were also prepaid, which resulted in significant savings on interest rates. Thanks to this fresh financing under tremendously favorable conditions, more than 70% of PASA’s debt expires in more than 5 years and less than 5% in less than one year. As a company, we are deeply satisfied with the work done by the people forming part of Parque Arauco S.A. Aiming at efficiency and growth in each market, in 2008, we restructured our teams so as to give our center managers greater responsibility and autonomy and we appointed chief executive officers in Peru and Colombia who would drive our international operations. This restructuring also meant the severance of 30 people, approximately 20% of our workforce. I would especially like
to thank each of these professionals for their work and their contribution to the development of the company during the time they were with us. We have a long-term vision and the market, as it now stands, undoubtedly changes our priorities. One of the fundamental tasks in 2009 will be to strongly support the retailers and add value to investors. We will do this by strengthening the business of store lessees and designing the best combination of products, services and entertainment, which is our hallmark. Our mentality is to view this crisis as an opportunity that will internally strengthen the operating excellence of Parque Arauco S.A. in each of its projects. We want 2009 to be a year when our company adds new values that bring it closer to customers and make it more competitive, profitable, offering greater advantages to its people. By way of conclusion, we want to thank our shareholders, directors, employees, store lessees, customers, suppliers and the entire community involved with Parque Arauco S.A. for their trust. I want to thank all of you for your efforts, enthusiasm and professionalism that you have committed to making this company a company that is, today, much more than an operator. It is a company recognized in the world as one of the great developers of shopping centers, capable of introducing innovation and creativity in Latin America. Sincerely,
Jose Said Saffie Chairman of the Board
PAGE
ANNUAL REPORT
PARQUE ARAUCO
JOSE SAID SAFFIE chairman of the board taxpayer I.D: 2.305.902-9 Lawyer, graduated from the University of Chile, President of BBVA. Chairman of Parque Arauco S.A. Director of the Bankers Association. Honorary Advisor to the Center for Public Studies (CEP). President of the Bethlehem
RODRIGO ABUMOHOR CARNIGLIA director · taxpayer I.D: 6.978.209-4 Business degree from the Catholic University of Chile, MBA in Financial Strategy, Anderson School, UCLA; CEO of Manufacturas Interamericanas S.A.
Full professor of
Strategy, Catholic University of Chile.
Palestinian Chile 2000 Foundation. President of the InterEntrepreneurial Chilean-Arabian Council.
THOMAS Mc DONALD director · Passport No.: 028553698 B.A. in International Relations and Spanish, University of Notre Dame. Partner and Director of the strategic office of Equity International. Director of Gafisa and BR malls.
SALVADOR SAID SOMAVIA director · taxpayer I.D: 6.379.626-3
GUILLERMO SAID YARUR director · taxpayer I.D: 6.191.544-3
Business degree from Gabriela Mistral University. Executive Director of the Said Group. Member of the Board of Envases del Pacifico S.A., The Endeavor Initiative Inc. Chairman of the Board of Isapre Cruz Blanca S.A. and Vice-Chairman of the Board of Embotelladora Andina S.A., BBVA Chile’s leasing, mutual fund and financial consulting subsidiaries. Advisor to Generacion Empresarial and Telmex Chile.
Completed a civil industrial degree at the University of Chile, a post-graduate degree in Finance at Adolfo Ibañez University. Director of Comercial Café Mokka.
The Board of Directors of Parque Arauco endeavors to provide a strategic vision of the different markets where the company does business and of the new opportunities that arise. All decisions are based on careful observation that will ensure the success of our operation.
RAFAEL ALDUNATE VALDES director · taxpayer I.D: 5.193.449-0
PATRICIO CLARO GREZ director · taxpayer I.D: 5.206.994-7
Business degree from the Catholic University, AMP from
Civil industrial engineer graduated from the University of
Harvard University.
Director of GTD Manquehue, Viña
Chile, Director of Industrias Forestales, Cia. de Seguros
San Pedro, Corredora MCC, Moneda-Asset and Instituto
BiceVida, Enersis S.A., Banco Bice and the Interbank High-
Libertad (The Freedom Institute).
Value Clearing House (Combanc S.A.).
TIMOTHY PURCELL director · taxpayer I.D: 14.577.313-k B.A., Cornell University, Master in International Affairs and MBA, Wharton School, University of Pennsylvania. Has been a Director of Nortel Investora, Patagon.com, Almacenes Exito, Banco Mercantil, Celulosa Arauco and Cruz del Sur Vida S.A., among others.
RAIMUNDO VALENZUELA LANG director · taxpayer I.D: 7.836.580-3 Business degree from the Catholic University of Chile. Master in Business Administration, Wharton School, University of Pennsylvania. Partner in R&R Wine Ltda. and Inmobiliaria Estrella del Sur Ltda
05
board of directors
ANDRES OLIVOS BAMBACH
JUAN PABLO SPOERER HURTADO
BLAS BELLOLIO ROTH
A team committed to operating excellence is key to the implementation of the plans and projects of Parque Arauco S.A. A group of people willing to do “more, in advance and better,” and to stay ahead and be the first to satisfy the needs of our partners and customers.
ANDRES OLIVOS BAMBACH
Rio de Janeiro. In 2006, he was awarded the prize for excellence
Executive Vice-President · Taxpayer I.D.: 7. 013.115-3
in strategic implementation while at Chilectra, granted by Harvard
Business degree from the University of Chile.
Chairman of
University professors. In 2007, he was elected “Best CFO in the
Inmuebles Comerciales del Peru S.A.C. and Parque Arauco
Industry” by his peers, which is awarded by Capital magazine and
Argentina. Director of Alto Palermo S.A. and Construmart S.A.,
Seminarium Penrhyn.
among other companies. He has focused throughout his career on the management of commercial and mass consumer enterprises
BLAS BELLOLIO ROTH
doing business in Chile, Argentina and Brazil. He has been directly
Chief Legal Officer · Taxpayer I.D.: 12.404.377-8
involved in the definition and implementation of strategies for
Lawyer graduated from the Catholic University of Chile. Master in
development, negotiation and management systems. He has
Laws (LL.M.), London School of Economics. Graduate Certificate
participated in the evaluation and acquisition of enterprises, leading
in Economics and Finance for Attorneys of the School of Business
finance transactions on the international capital (ADR) and debt
Administration of the University of Chile. His experience includes
markets (United States, Europe and Chile) for more than US$1.5
the practice of corporate, judicial and industrial property law. He
billion between 1994 and 2007.
has also worked for the law firms of Portaluppi, Guzman y Bezanilla, Alvarez y Cia. and Federico Villaseca y Cia.
JUAN PABLO SPOERER HURTADO Chief Financial Officer · Taxpayer I.D.: 10. 877.023-6
FRANCISCO AZCONA VIRRUETA
Business degree from the Catholic University of Chile. MBA from
Chief New Business Officer · Taxpayer I.D.: 6. 289.488-8
Duke University. He has worked for more than fourteen years
Business degree from Adolfo Ibañez University. He has worked
in management of the Enersis Group, and was chief financial and
in several areas—commercial, marketing, real estate and general
strategic planning officer of Chilectra from 2005 to 2007. He has
administration—in the retail and agroindustrial sectors in companies
ample experience in M&As in the region. He was a Director of
such as D&S, Santa Isabel, Empresas Iansa and MTS. He has also
Codensa and Ampla, power distribution companies in Bogota and
been involved in M&As in Chile and Brazil.
FRANCISCO AZCONA VIRRUETA
GONZALO QUINTEROS ANDWANTER
SOLANGE IBARBOURE BARNETCHE
JORGE CASTRO ORREGO
05
management
GONZALO QUINTEROS ANDWANTER
EDUARDO HERRERA VASQUEZ
Chief Commercial Officer · Taxpayer I.D.: 5. 894.656-7 Studies in civil engineering. He has led the commercial and marketing development of Parque Arauco S.A. for 14 years. He is a member of the Advisory Board of the International Council of Shopping Centres (ICSC) for South America and Vice-President of the Chilean Chamber of Shopping Centers.
CEO, PERU DIVISION · National I.D: 07257688
SOLANGE IBARBOURE BARNETCHE
Manager of Profuturo AFP. He also was the Investment Banking
CHIEF PERSONS AND ORG. OFFICER · Taxpayer I.D.: 6.521.170-K Anthropologist and Business Administrator, Austral University of Valdivia. Master in Marketing and Business, ESEM. She has worked in the Human Resources area of national and multinational companies for 16 years, managing projects and leading human capital administration processes.
manager of HSBC Bank in Lima and he was employed at one time
JORGE CASTRO ORREGO Comptroller and Audit Committee Taxpayer I.D.: 9.768.458-8 Certified public accountant and auditor, specializing in U.S. GAAP, IFRS and Chilean regulations, graduated from the University of Santiago. He has conducted financial audits and prepared reports for companies such as BanChile S.A., Citibank S.A., Wella Chile, BellSouth Chile and Embotelladora Andina S.A. as part of his work for Langdon Clarke y Cia. At Embotelladora Andina S.A., he later supervised the corporate budget and management control system and the consolidation of the management reports of the subsidiaries of the Andina holdings.
Industrial engineer who graduated from the Catholic University of Peru. He holds a Master in Science with a minor in Finance from the London Business School. He has more than eight years of experience in investment, working until recently as the Investment
by N.M. Rothschild & Sons, Merrill Lynch, Prisma Inversiones and Banco Continental BBVA.
JUAN PABLO ROMERO restrepo CEO, Inversiones Colombianas Arauco Ltda. National I.D: 79.778.451 MBA from Thunderbird University, Phoenix, Arizona.
He has
more than 10 years of experience working in multinationals in Latin America where he has developed, expanded and managed businesses. Before joining Parque Arauco, he worked for BASF, a German company, and Avianca S.A. an airline, where he handled the financial reorganization and successful sale of the company. After the sale, Romero remained at the airline to pursue strategic projects.
The goal of Parque Arauco S.A. has always been to place a unique hallmark on all its projects and in each new challenge. This means looking for innovative ways to attract visitors to our shopping centers while we strengthen the business of store lessees and design a better combination of product, service and entertainment assortments that are accessible, comfortable and safe.
Parque Arauco Kennedy is opened
Mall Arauco Maipu is opened
The first 25 years... 1982
Parque Arauco S.A. becomes a partner with Alto Palermo S.A., the leading retailer in Argentina
1993
1994
2008: THIS IS HOW WE STARTED the second quarter of the century in parque arauco january · We were
·
put on the Selective Stock Price Index
may · We
consolidated the operation of Paseo Arauco
(IPSA), which represents the 40 stocks most traded
Estacion (acquired as Mall Paseo Estacion), adding
on the Santiago Stock Exchange.
28,353 m2 to the company.
We completed our entry to Colombia by the Alameda Project, a shopping center measuring 40,000 m2 of GLA that is being built in the city of Pereira.
march · We placed corporate bonds on the market for an
june · We concluded the second stage of the 10,000 m2 expansion of Megaplaza Norte in Peru.
july · We announced an agreement with Conpropiedad,
aggregate of 3.5 million. This was a very successful
a local group belonging to the prestigious
transaction because of the low rate secured. The
Inverandino organization and a strategic alliance
funding was used to finance investment projects
with Pedro Gomez y Cia. to undertake a second
(Chile, Peru and Colombia).
project in Colombia, in the city of Barranquilla.
A 33.3% interest is acquired in Inmobiliaria Mall VIña del Mar
1997
OUR ACHIEVEMENTS AND RESULTS IN 2008
REFLECT THE STRENGTHS OF ACTUAL OPERATIONS AND THE CONSOLIDATION
OF OUR FUTURE PROJECTS
06
brief history Mall Center de Curico is opened
Equity International acquires 13.5% of Parque Arauco S.A.
2006
A strategic joint venture is formed in Peru with the Weisse Group to acquire 45% of Shopping Megaplaza
2006
Parque Arauco S.A. creates a subsidiary in Colombia to develop real estate projects
2006
july · We began construction of Mall Arauco del Pacifico
Parque Arauco takes over Plaza El Roble in Chillan
2007
2007
october · We implemented
a new format, Arauco Express
in San Antonio. This is an integral project that
Pajaritos, the first Stripcenter. It added 5,300 m2 of
includes a mall, casino and hotel.
GLA.
· Tower 1 of the Torres del Parque office project was opened, with a 90% occupancy.
This
project adds 23,000 m 2 of GLA to Parque Arauco S.A.
september · We celebrated
november · We concluded
the second stage of Mall Arauco
Maipu by adding a second floor and a new service area. The mall now has 59 thousand square meters of leasable area and 180 stores. • We completed the first stage of the expansion
“Chilean Day” in New York
of Parque Arauco Estacion, adding 30,000 new
with thirty executives from the fourteen largest
square meters of GLA. This new area houses two
regional companies.
anchor stores, Homecenter and Paris.
Our strategy is to create a regional operating platform in Latin America that will allow us to strengthen the growth in existing assets, develop new formats and expand to new markets.
OUR REGIONAL FOCUS IS TO EXPAND IN PERU,
COLOMBIA AND CHILE, MARKETS WITH A HIGH GROWTH POTENTIAL, GOOD
OPPORTUNITIES AND PROFITABLE PROJECTS
07
where we are in the region
MALL
Country
TOTAL GLA (M2)
Interest (%)
Own GLA (M2)
Parque Arauco Kennedy
Chile
113,355
100.0%
113,355
Arauco Maipú
Chile
59,419
100.0%
59,419
Plaza el Roble
Chile
25,068
100.0%
25,068
Paseo Arauco Estación
Chile
64,619
83.0%
53,634
Marina Arauco
Chile
57,120
33.3%
19,040
Mall Center Curicó
Chile
45,885
33.3%
TOTAL CHILE Megaplaza Norte
365,466 Peru
TOTAL PERU
71,495
15,295 285,811
45.0%
71,495
32,173 32,173
Alto Palermo
Argentina
18,551
31.6%
5,862
Abasto
Argentina
39,642
31.6%
12,527
Patio Bullrich
Argentina
11,685
31.6%
3,692
Paseo Alcorta
Argentina
14,465
31.6%
4,571 11,701
Alto Avellaneda
Argentina
37,030
31.6%
Buenos Aires Design
Argentina
14,069
17.1%
2,401
Alto Noa
Argentina
18,851
31.6%
5,957
Alto Rosario
Argentina
28,561
31.6%
9,025
Mendoza Plaza
Argentina
39,688
26.9%
10,660
Córdoba
Argentina
10,117
31.6%
3,197
TOTAL ARGENTINA
232,659
69,594
TOTAL
669,620
387,577
Where we are in the region parque arauco in chile In Chile in 2008, we worked on projects that helped Parque Arauco grow in one same direction. All aimed at a strategic goal: consolidating as the developers of different types of shopping centers open to change and improvement, capable of creating value from scratch through innovation and creativity.
the market
· Potential for economic growth · Political stability · Opportunities in regions · Quick retail development
Where we are in the region parque arauco in chile arauco del pacifico
paseo arauco estacion
inauguration of phase II of mall arauco maipú
In March we acquired 51% of Mall Arauco
During May, we closed the transaction to
del Pacifico, a project in San Antonio
acquire 83% of the stock in Mall Paseo
In November, we inaugurated the
that entails an investment of US$45
Estacion for an investment of US$61
second stage of the enlargement of Mall
million by Parque Arauco. In addition
million.
Arauco Maipu, involving an aggregate investment of US$39 million.
to contributing to regionalization, this
Parque
operation helps us reach other socio-
The shopping center, with the greatest
Arauco achieved the objective of making
economic segments and diversify by
affluence of public in the nation (70
Mall Arauco Maipu one of the most
a new format that consists of a mall,
million shoppers annually) measures
modern shopping centers in the country,
casino and hotel.
64,619 square meters of leasable area
with a leasable area of 59 thousand
that includes small stores, restaurants,
square meters.
Mall Arauco del Pacifico will become the
medical
first shopping center in San Antonio and
entertainment centers, a supermarket,
upon completion of its construction, the
food courts and the San Borja Bus Station
leasable area will total 31,000 square
as well as two recently inaugurated
meters that will generate an EBITDA
anchor stores.
bordering US$6 million.
centers,
movie
theaters,
07
where we are in the region
31
arauco express pajaritos stripcenter We inaugurated Arauco Express Pajaritos in Maipu. This is Parque Arauco’s first stripcenter, which cost a total of US$10 million and has a leasable area of 5,300 square meters. The project includes a supermarket, drugstore, restaurants, gym and 25 small stores that provide mainly services.
torres del parque
plaza el roble
Torres del Parque was inaugurated in the second half of the year, beside Parque Arauco Kennedy. It consists of two office towers for lease, one of which is fully occupied and the other in the process of being leased.
2008 was our first year as operators of Plaza El Roble. Like our hallmark, in addition to bringing new brands, we implemented a modern parking system that has a more beneficial and improved infrastructure, the objective being to give all customers greater parking efficiency, comfort, safety and availability. Plaza El Roble is a strategic asset of Parque Arauco. It is located in downtown Chillan and is, today, the leading shopping center in the province of Ñuble. It measures 25,068 m2.
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ANNUAL REPORT
PARQUE ARAUCO
Where we are in the region parque arauco in peru Peru is a market key to the expansion of our company. In 2008, we were able to consolidate a land platform measuring 200 thousand square meters while also expanding and
· Highly profitable · Clear rules
remodeling Megaplaza Norte. We are currently building a stripcenter in Chorrillos.
· Great investment possibilities
the market
megaplaza norte
· A key market in PASA’s expansion
One of the most significant achievements in 2008 was increasing the activities in Megaplaza Norte. Its sales
· Strong economic growth
rose 29%.
Today Megaplaza is the second most important mall in the country and the leading mall in terms of shoppers—35 million in 2008. This was achieved thanks to an investment of US$8 million, which resulted in an attractive mix of stores and the enlargement of the leasable area by 10,000 m2 to 71,495 m2.
as the CFO. Both have the challenge of consolidating the investment that is being made by the company in Peru through new or existing projects and of identifying the growth needs of Parque Arauco and the leading retailers in the region.
chorrillos stripcenter the team In 2008, we appointed Eduardo Herrera the new CEO, Peru Division, of Parque Arauco S.A., and Jose Luis Acuña
We will begin construction of our Chorrillos Stripcenter in 2009 for an investment of US$ 7 million. It will have a leasable area of 6,000 m2.
Where we are in the region parque arauco in colombia The company’s plan includes building a shopping center in Pereira and developing other shopping centers in other cities in the country, such as Barranquilla, where construction will begin once the actual situation improves.
the market
· A stable market that is commercially unexplored and attractive · Legal stability · Economically sound · Little development of profit-generating shopping centers = the possibility of inserting our business model
· Cities with a high potential for consumption
alameda, pereira
the team
This year we began construction of Mall Alameda Pereira,
We wanted to replicate our experience, knowledge and
our first project in this coffee bean country that will have
profound vision of the Colombian market so we appointed
40,000 m of GLA for an investment of US$88 million.
Juan Pablo Romero the new CEO of the subsidiary. He will
The shopping center will consist of three levels, 200 stores
be at the head of all our operations in Colombia.
2
and 1,200 parking places. There will be game areas, food courts, movie theaters and two anchor stores as well as one office tower and medical centers. We plan to open it by the first semester of 2010.
Where we are in the region parque arauco in argentina In Argentina, Parque Arauco continues to consolidate its outstanding position in the metropolitan area of Buenos Aires and Greater Buenos Aires. Its performance was sound in 2008 as its operating results increased at paces above revenues.
the market
· More than 10 years on the Argentine market · 10 malls in different cities in the country · Total sales of our store lessees increased 27%. · High occupancy:
99.3% at the close of the fiscal year.
dot buenos aires We began building a new, large shopping center in the Saavedra Sector as part of the expansion of Alto Palermo in Buenos Aires. The investment will amount to approximately US$140 million.
This is one of the most important projects of the Company and one of the most significant developments in the Argentine industry. It entails the construction of a shopping center, a hypermarket, a movie theater complex and an office building and/or residential building through which we will be able to attract shoppers with a very good buying power.
The project is being developed by Panamerican Mall S.A., a company in which Alto Palermo S.A., our shopping center subsidiary, holds an interest of 80%.
WE MUST MAXIMIZE THE RETURN
OF PARQUE ARAUCO AND GROW IN THE REGION TO ASSURE THE GROWTH
AND THE VALUE OF THE COMPANY
08
2009: future challenges
2009: future challenges We must maximize the return of Parque Arauco and grow in the region to assure the growth and the value of the company. Our main mission will be to continue working on implementing the projects already begun in Chile, Peru and Colombia, several of which are under construction.
how?
chile
· Given the actual economic scenario, Parque Arauco has
Mall vecinal Arauco Quilicura
announced that it will postpone construction of 4 of the previously announced projects.
Yet we will continue
We plan to build a mall in the heart of the borough of
to work and invest in projects now underway, which
Quilicura and thus satisfy the daily needs of consumers in
represent an aggregate investment of US$161 million in
that sector. The investment in this project will total US$35
2009 and 2010. We are being very careful about the speed at which we implement the announced projects and we are being flexible in adapting the pace of the
million, it will measure 33 thousand square meters, have 120 stores and 550 parking places.
company’s expansion.
· These
are times for prudence and responsibility. We
are therefore reevaluating the development times of each project according the market conditions and the willingness of our partners. We must find the best time
Arauco Premium Outlet Quilicura This project will be located in the north zone of Santiago and will offer national and international brands at low
to begin things well and continue with the success of our
prices. The mall will be based on the successful outlet
operations.
formats of the United States, to be built for an investment of approximately US$15 million. This format will be adapted
· At
the same time, we will continue working on the
to the reality of the domestic market. A total of 7,900 m2
commercial location of projects and acquiring land to
of GLA will be built with a great number and diversity of
develop them.
brands of renowned quality and record. Through Arauco
08
2009: future challenges
41
Premium Outlet Quilicura, Parque Arauco S.A. will begin to
than 2,500,000 inhabitants in the cities of Barranquilla,
develop and operate a new format.
Puerto Colombia, Cartagena and contiguous cities. The project will entail an investment of US$153 million and have a leasable area of 80,000 m2.
peru Parque El Golf This Project entails an investment of US$106 million and a GLA of 71 thousand square meters. It is currently in the architectural stage. It will have a mix of high-class stores that will include a lifestyle center where the best international brands will do business. Also included are office towers, restaurants and a luxury hotel.
colombia Barranquilla This is the second project that PASA will build in Colombia and it is expected to be the most important shopping center on the Atlantic coast of that country given the more
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ANNUAL REPORT
PARQUE ARAUCO
THE MAIN VALUE OF PARQUE ARAUCO
TO THE COMMUNITY IS THAT OF CREATING A UNIQUE EXPERIENCE
FOR EACH SPECIFIC CONSUMER PUBLIC
parque arauco: much more than just shopping
09
parque arauco: much more than just shopping The main value of Parque Arauco to the community is that of creating a unique experience for each specific consumer public. Parque Arauco is able to develop spaces that are more than just buying centers. They are places of encounter that have what each consumer public needs to feel at home and experience moments of joy, culture and recreation.
One of the fundamental strategies of our company is to
We have achieved all of the above by clear and sound
improve the quality of service that we offer our customers,
values that guide our daily actions as a team.
in the understanding that their satisfaction is indispensable to the success of our business and the attainment of the objectives that we have set.
· Art is alive at Parque Arauco:
Expositions, design floor, caricaturists.
COLLABORATION
We endeavor to have and we encourage working as a team. We value the contribution of each and we proactively
· Magic at your table:
contribute to attaining common goals.
Magicians wander through Boulevard restaurants and entertain diners.
· Parque Arauco Fashion: A fashion show for each season.
PROFESSIONALISM
We work to do things well and on time.
· Evening Drinks. · Live, outdoor music.
INTEGRITY
· Nights of the World:
We are honest with ourselves and with others. We fulfill
Dancing and music characteristic of each country.
our commitments and thus establish trust.
09
much more than just shopping
45
PASSION We feel a great enthusiasm for the work we do and we get involved beyond our roles and responsibilities. The company’s business means as much to us as if it were our own because that is what the shareholders expect and they have entrusted their patrimony to us.
contribution to the community For the past three months, we have been implementing an Entrepreneurial Social Responsibility project consisting of recycling cardboard cartons, plastics, tins, burnt oil and other waste. Every day we classify these materials, which has signified an important effort by the company to contribute to care of the environment.
OPENNESS We are open to conceiving new ideas and ways of doing things. We create novel and attractive proposals for our customers and store lessees. We value diversity, we are open to others, we respect them and value how they are and how they think.
SURPRISE THE CUSTOMER We endeavor to understand and surprise our customers and other collaborators in ways that go beyond their expectations.
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ANNUAL REPORT
PARQUE ARAUCO
10
information on the company
identification of the company
charter documents
Name
Parque Arauco S.A. was incorporated by public deed dated
Parque Arauco S.A.
November 30, 1979, executed in the Santiago Notarial Office of Andres Rubio Flores. It was modified by public deed dated
Type of Company
February 23, 1981, executed in the same notarial office. It was
Open stock corporation
granted authorization to do business and its bylaws were approved by Resolution 363-S of the Securities and Insurance Commission
Stock Exchange Abbreviation
dated June 22, 1981.
Parauco An abstract of the business authorization and bylaw approval was Registered Offices
registered on page 11,408, number 6,348, of the 1981 Commercial
Avenida Presidente Kennedy 5413, Las Condes, Santiago
Registry of the Santiago Real Estate Registrar. It was also published in Official Gazette No. 31003 on June 30, 1981.
Address Avenida Presidente Kennedy 5413, Las Condes, Santiago
The bylaws were later amended many times, the most recent reforms being by public deeds dated: a) June 1, 1992, executed
Phone Number
in the Notarial Office of Andres Rubio Flores.
(562) 299-0500
was registered on page 20,648, number 10,800 of the 1992
An abstract
Commercial Registry of the Santiago Real Estate Registrar and Fax Number
published in Official Gazette No. 34308 on July 6, 1992; b) July
(562) 211-4077 or 211-4131
20, 1992, executed in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 23,842, number 12,725 of the
Web Site
1992 Commercial Registry of the Santiago Real Estate Registrar
www.parauco.com
and published in Official Gazette No. 34333 on August 4, 1992; c) April 7, 1994, executed in the Notarial Office of Andres Rubio
Taxpayer Identification Number
Flores. An abstract was registered on page 8,260, number 6,805
94.627.000-8
of the 1994 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 34582 on April
Duration
29, 1994; d) October 21, 1994, executed in the Notarial Office of
Indefinite
Andres Rubio Flores. An abstract was registered on page 25,747, number 20,928 of the 1994 Commercial Registry of the Santiago
Securities Registration Number
Real Estate Registrar and published in Official Gazette No. 35,024
0403
on November 24, 1994; e) May 14, 1997, executed in the Notarial
10
information on the company
49
Office of Andres Rubio Flores. An abstract was registered on page 12,154, number 9,722 of the 1997 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 35,773 on May 24, 1997; f) October 13, 2005, executed in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 38,425, number 27,337 of the 2005 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 38,291 on October 20, 2005; g) October 3, 2006, executed in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 40,703, number 28,935 of the 2006 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 38,583 on October 7, 2006; and h) May 11, 2007, executed in the Santiago Notarial Office of Luis Poza Maldonado. An abstract was registered on page 20,217, number 14,744 of the Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 38,771 on May 25, 2007.
ownership of the company The capital of the company is divided into 615,000,000 shares with no par value, each of the same value, in one series. 607,250,000 shares were subscribed and paid in as of December 31, 2008. 12 MAJORITY SHAREHOLDERS AS OF DECEMBER 2008 NAME
EI FUND II CHILE LLC
Taxpayer I.D.
59,124,410-8
SHARES
81,754,887
%
13.46%
INVERSIONES CABURGA S.A.
96,854,480-2
57,066,174
9.40%
CORP CAPITAL CORREDORES DE BOLSA S.A.
96,665,450-3
51,572,490
8.49% 6.13%
BANCHILE CORREDORES DE BOLSA S.A.
96,571,220-8
37,227,692
BANCO DE CHILE POR CUENTA DE TERCEROS CA
97,004,000-5
36,818,883
6.06%
INVERSIONES DEL PACIFICO S.A.
78,031,260-2
18,111,746
2.98%
AFP CUPRUM S.A.
98,001,000-7
17,901,448
2.95%
SOCIEDAD CONSTRJARDINES DEL BOSQUE LTDA.
88,036,500-2
17,569,334
2.89%
INVERSIONES GUADALMINA S.A.
96,532,940-4
17,530,000
2.89%
AFP PROVIDA S.A.
98,000,400-7
14,782,026
2.43%
MANUFACTURAS INTERAMERICANA SA
92,171,000-3
14,179,944
2.34%
76681360-7
10,250,500
1.69%
INVERSIONES LAS NIEVES S.A.
The Company has no controller, as defined in Title XV of Law 18,045. The following shareholders owned shares, either directly or through other natural or juristic persons, representing 10% or more of the company’s capital at December 31, 2008:
· Mr. Jose Joaquin Said Saffie, taxpayer identification number 2.305.902-9, holds an indirect interest of 16.18% in Parque Arauco S.A. through Inversiones Caburga S.A. (taxpayer I.D. 96.854.480-2), Inversiones Santa Berta S.A. (taxpayer I.D. 95.305.000-5), Inversiones Guadalmina S.A. (taxpayer I.D. 96.532.940-4), Inversiones del Pacifico S.A. (taxpayer I.D. 78.031.260-2) and Inversiones y Asesorias Gran Andes Ltda. (taxpayer I.D. 78.265.960-K).
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ANNUAL REPORT
PARQUE ARAUCO
· Equity International Management, LLC, a private property investment fund, holds a 13.46% interest in Parque Arauco S.A. through El Fund II Chile LLC (taxpayer I.D. 59.124.410-8).
· The Said Yarur Family holds a direct and indirect 8.66% share of Parque Arauco S.A. through Inversiones Ranco Uno S.A. (taxpayer I.D. 76.002.237-3), Inversiones Ranco Dos S.A. (taxpayer I.D. 76.002.243-8), Inversiones Ranco Tres S.A. (taxpayer I.D. 76.002.244-6), Inversiones Ranco Cuatro S.A. (taxpayer I.D. 76.002.246-2), Sociedad Inversora Rauten Limitada (taxpayer I.D. 77.092.640-8) and shares held individually or in the custody of stock brokers. SHAREHOLDINGS OTHER 14.0% MUTUAL FUNDS 2.8%
INVESTMENT FUNDS 16.2%
STOCK BROKERS 12.2%
JOSE SAID S. 16.2% FAMILY SAID YARUR 8.7% FAMILY ABUMOHOR 7.3% EQUITY INTERNATIONAL 13.5% PENSION FUND MANAGERS 9.3%
description of the organization BOARD OF DIRECTORS Parque Arauco is an open corporation managed by a Board of Directors comprised of nine members elected by a Regular Shareholders Meeting for a three-year term. The board is presided by the Chairman. A Vice-Chairman replaces the Chairman whenever he is absent. The Regular Shareholders Meeting held April 26, 2007 elected the board members identified in this report. BOARD AUDIT COMMITTEE The Board Audit Committee appointed by the Company’s Board is comprised of the following members:
· Guillermo Said Yarur, taxpayer I.D. 6.191.544-3, civil industrial engineer · Patricio Claro Grez, taxpayer I.D. 5.206.994-7, business administrator · Rafael Aldunate Valdes, taxpayer I.D. 5.193.449-0, business administrator ORGANIZATIONAL STRUCTURE
Parque Arauco S.A. is structured into a Corporate Division and Operating Divisions by Country.
· Executive Vice-Presidency · Corporate Divisions
10
information on the company
51
· Comptroller and Audit Committee · Commercial · Finance · Legal · People and Organization · New Business
· Operating Divisions by Country · General · Commercial · Marketing · Finance · Services and Infrastructure BanKs BBVA, B.I.C.E., Chile, Citibank, CorpBanca, B.C.I., Santander Santiago, Security, Scotiabank and BancoEstado. EXTERNAL AUDITORS Ernst & Young LEGAL COUNSEL The Corporate Legal Department of Parque Arauco S.A. retains legal counsel from outside attorneys when needed. RISK RATING AGENCIES Fitch Ratings and Feller Rate EQUITY Below are the equity accounts as of December 31, 2008: Paid-in capital
CH$000’s
152,277,667
Premium on the sale of treasury stock
CH$000’s
10,011,798
Other reserves
CH$000’s
4,280,552
Future dividend reserves
CH$000’s
78,387,098
Fiscal year profit (loss)
CH$000’s
11,106,092
TOTAL EQUITY
CH$000’s
256,063,207
INCENTIVE PLANS Some of the company’s executives are subject to goal-based incentive plans. These goals are set individually, according to the scope of their functions.
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ANNUAL REPORT
PARQUE ARAUCO
TRADEMARKS AND PATENTS The company has registered the trademark Parque Arauco and other trademarks in different classes with the Department of Industrial Property of the Ministry of Economy. The registrations are valid for a period of ten years and are renewable at maturity. CUSTOMERS The direct customers of Parque Arauco S.A. are the lessees of stores and business offices. However, indirect customers are the consumer public visiting the shopping centers, who are a cornerstone of the company’s business. SUPPLIERS Given the characteristics of the business of Parque Arauco S.A., the main suppliers are general service companies, such as Chilectra Metropolitana, Compañia General de Electricidad and Aguas Cordilleras, construction companies and advertising and marketing companies such as SB&Partners and other general service companies such as security, maintenance, cleaning and the like. They include the mass media, such as newspapers, magazines, radio stations and television stations. PROPERTIES
· The Parque Arauco Kennedy Shopping Center is located in the borough of Las Condes and is built on 86,787 square meters of land.
This
land is comprised of four lots in portion C of the subdivision drawing of the former San Luis Ranch in the borough of Las Condes and they are registered on: page 32,018, No. 36,740 of the 1982 Property Registry, on page 13,872, number 9,264 of the 1992 Property Registry, on page 33,996, number 24,697 of the 1992 Property Registry, these three lots comprising the merged lot C-5A; and on page 1,700, number 1609 of the 1993 Property Registry, which corresponds to Lot C-6.
· The Arauco Maipu Shopping Center is located on land measuring 165,516 square meters, in the borough of Maipu.
This land is comprised
of lots One-A and B and Lot 2. The properties are registered on page 47,433, numbers 37,090-37,091 and on page 47,434, number 37,092-37,093 of the 1993 Property Registry of the Santiago Real Estate Registrar.
· The Plaza El Roble Shopping Center is located in the city of Chillan on land measuring 5,440 square meters.
This land is comprised of lots
48, 35, 34, 36, 46, 47, 41, 37 and 43 of the subdivision of the property called Model Market of Chillan; of the property located at the intersection of Isabel Riquelme Street at the corner of El Roble Street; and of the property at 736 Isabel Riquelme Street, all in the city of Chillan and registered as follows: the first on page 7,526, number 5,977; the second on page 7,525, number 5,976, these first two in the 2007 Property Registry of the Chillan Real Estate Registrar; and the third on page 7,269, number 4,392 of the 2001 Property Registry.
· The Arauco Express Pajaritos Shopping Center is located at Americo Vespucio North 51, in the borough of Maipu, on land measuring 14,428.68 square meters. This land is comprised by lots 1, 2, 3 and 4, registered on page 57,477, number 93,894, on page 57,477, number 93,895, on page 57,478, number 93,896, and on page 57,479, number 93,897, all in the 2006 Property Registry of the Santiago Real Estate Registrar.
· The Arauco del Pacifico Shopping Center is being built on land in San Antonio, measuring 8,723 square meters.
This land is located at
Ramon Barros Luco 105, borough and city of San Antonio, and it is registered on the back of page 50, number 56, of the 2004 Property Registry of the San Antonio Real Estate Registrar, and on page 265, number 235, of the 2007 Property Registry, both in the name of Desarrollos Inmobiliarios San Antonio Limitada, now called Desarrollos Inmobiliarios San Antonio S.A.
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information on the company
53
· The Arauco Quilicura Shopping Center will be built in the borough of Quilicura, on land measuring 72,309 square meters.
This land is
located at O’Higgins Street, corner of Prat Street, registered on page 12,008, number 19,113 in the 2007 Property Registry of the Santiago Real Estate Registrar, on page 31,736, number 49,973 of the 2008 Property Registry, on page 31,735, number 49,971 of the 2008 Property Registry, and on page 31,735, number 49,972 of the 2008 Property Registry.
· The Arauco Premium Outlet will be built on land measuring 25,485 square meters in the borough of Quilicura.
This land is located at
Avenida Presidente Eduardo Frei M., the Aconcagua 8551 subdivision corresponding to Parcel 8A, registered on page 22,721, number 35,724 in the 2008 Property Registry of the Santiago Real Estate Registrar.
CONTRACTS COMPANY
PERIOD
SERVICE
Eulen Seguridad S.A.
Annual
Security inside Parque Arauco Kennedy
Preservi S.A.
Annual
Security outside Parque Arauco Kennedy
Seguricorp S.A.
Annual
Security inside and outside Mall Arauco Maipu
Control Integral de Plagas Ltda.
Annual
Environmental hygiene, fumigation, rat control, insect control and sanitization of Parque Arauco Kennedy and Mall Arauco Maipu
Trane de Chile S.A.
Annual
Preventive maintenance of the air-conditioning system in Parque Arauco Kennedy
The Synergy Group S.A.
Annual
Environmental odor and grease control in Parque Arauco Kennedy and Mall Arauco Maipu
Ascensores Schindler (Chile) S.A.
Annual
Maintenance of escalators and elevators in Parque Arauco Kennedy
Ascensores Otis Chile Limitada
Annual
Maintenance of escalators and elevators at Parque Arauco Kennedy and Mall Arauco Maipu
Thyssenkrupp Elevadores S.A:
Annual
Maintenance of escalators, elevators and lifts at Parque Arauco Kennedy
Eulen S.A.
Annual
General cleaning of Parque Arauco Kennedy
ISS Servicios Generales Ltda.
Annual
General cleaning of Mall Arauco Maipu
Caneclin Ltda.
Annual
Mechanical parking lot sweeping and washing at Parque Arauco Kennedy and Mall Arauco Maipu
Ecoclean S.A.
Annual
Removal of waste, garbage and debris at Parque Arauco Kennedy and Mall Arauco Maipu
Central Parking
Annual
Parking collection system at Parque Arauco Kennedy and Plaza El Roble
Burson Marsteller
Annual
Communications agency
SB & Partners
Annual
Creative agency
Mindshare
Annual
Media agency
Digitaria
Annual
Web site development and maintenance
MAC Editores
Annual
Publisher of Detalle magazine
Integra S.A.
Annual
Manpower agency
IIA
Annual
Engineering and information technology (web server)
El Mercurio
Annual
Press
La Tercera
Annual
Press
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ANNUAL REPORT
PARQUE ARAUCO
EQUIPMENT: MAIN MACHINERY AND EQUIPMENT OWNED BY THE COMPANY The company owns a fleet of machinery and equipment required for operations. They are maintained and replaced according to an investment schedule approved each year by the company’s senior management. Below is a list of that main machinery and equipment: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
13. Sewage systems
Potable water systems Power systems Wet standpipes Climatization systems Closed circuit television systems Emergency generators Audio systems Internal communication systems Smoke detection systems Escalators Elevators Sprinkler systems
14. Gas systems 15. Fiber optic network 16. Air extraction systems 17. Central climate control systems 18. Gas leak detection systems 19. Waste water removal systems 20. Visitor counting systems 21. Evacuation speaker system 22. Telephone switchboard 23. Parking collection system
INSURANCE All of the properties of the company, its subsidiaries and affiliate are insured against all risks with Royal & SunAlliance Seguros (Chile) S.A. Below is a list of the assets and of the amounts insured: PARQUE ARAUCO AREA
POLICY
AMOUNT (UF)
NET PREMIUM (UF)
PREMIUM W/VAT (UF)
All risks included
3377502
7,280,558
9,959.80
10,905.98
Terrorism
3377058
2,000,000
1,143.05
1,360.23
Employee fidelity
3376655
80.00
95.20
Civil Liability
3390808
611.86
728.11
Crystal glass
3369954
Personal accidents
3376785
5,000
150.00
178.50
803.52
956.19
12,748.23
14,224.21
NET PREMIUM (UF)
PREMIUM W/VAT (UF)
CONSTRUCTORA Y ADMINISTRADORA UNO · MALL ARAUCO MAIPU AREA
POLICY
AMOUNT (UF)
All risks included
3377644
3,208,835
4,389.69
4,806.71
Terrorism
3377082
2,000,000
503.79
599.51
Crystal glass
3369246
2,000
60.00
71.40
Employee fidelity
3376681
1,000
50.00
59.50
Civil Liability
3370766
282.40
336.06
Personal accidents, general companies
3370522
168.48
200.49
5,454.36
6,073.67
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information on the company
55
PLAZA EL ROBLE AREA
POLICY
AMOUNT (UF)
NET PREMIUM (UF)
PREMIUM W/VAT (UF)
Industrial/All property risks
3377558
1,206,250
1,650.15
Terrorism
3377076
2,000,000
144.75
1,806.93 172.25
Personal accidents
3370515
150.16
178.69 336.06
Civil liability
3370875
40,000
282.40
Crystal glass
3369966
2,000
60.00
71.40
Employee fidelity
3371637
1,000
50.00
59.50
2,337.46
3,624.83
PASEO Arauco ESTACION · ADMINISTRADORA DE COMERCIO AREA
Industrial/All property risks
POLICY
3383177
AMOUNT (UF)
253,959
NET PREMIUM (UF)
330,15
PREMIUM W/VAT (UF)
361,52
PASEO Arauco ESTACION · INMOBILIARIA PASEO DE LA ESTACION S.A. AREA
POLICY
Crystal glass
3369981
Personal accidents
3369865
AMOUNT (UF)
2,000
NET PREMIUM (UF)
PREMIUM W/VAT (UF)
60.00
71.40
120.00
142.80
Home fire
3369856
1,300
2.17
2.34
Terrorism
3377023
1,000,000
202.26
240.69
Employee fidelity
3376745
1,000
50.00
59.50
Civil Liability
3370881
30,000
200.00
238.00
Industrial/all property risks
3377661
702,781
961.40
1,052.73
1,595.83
1,807.46
PASEO Arauco ESTACION · PLAZA ESTACION S.A. AREA
POLICY
AMOUNT (UF)
NET PREMIUM (UF)
PREMIUM W/VAT (UF)
Civil Liability
3370888
2,000
25.00
29.75
Industrial/all property risks
3377682
709,976
971.25
1.063.50
Non-home fire w/earthquake
3390330
19,500
25.35
27.77
1,021.60
1,121.02
PASEO Arauco ESTACION · TERMINAL SAN BORJA AREA
Industrial/all property risks
POLICY
3382720
AMOUNT (UF)
18,750
NET PREMIUM (UF)
25.65
PREMIUM W/VAT (UF)
28.08
PAGE
ANNUAL REPORT
PARQUE ARAUCO
FINANCIAL ACTIVITIEs The company invests its free cash in financial instruments such as repurchase/resale agreements, mutual funds, investment funds and time deposits, whichever is more convenient in terms of the risk-return ratio and liquidity. This is done by rigorously comparing the alternatives available on the capital market at the time. The finance policy is to attract capital market funding to finance projects that will allow us to grow in alignment with the covenants stipulated in outstanding loan agreements. Financial liabilities mainly consist of long-term structured bank loans where the company tries to match the debt currency to revenues. The main financial covenants are:
· Debt ratio: 1,4. · Financial expense coverage ratio: 2.0 for 2008, increasing annually and linearly to 2.5 by 2012.
Starting that year, it will remain at that
level for the residual term of the bonds.
· Temporary debt increase: The company can increase its indebtedness above the standing covenants to 1.7 (with a financial expense coverage ratio of 2.0) once, through 2013, for no more than 12 months. The board approved prepayment of all Series D and E bonds issued by Parque Arauco S.A. at its meeting held June 25, 2007. This prepayment was made on August 1, 2007.
Stock Options The company has set up an incentive system for its leading executives and those of its subsidiaries. It consists of a Stock Option Plan pursuant to article 24, third subparagraph, of the Companies Law. 5% of the capital increase approved by the Special Shareholders Meetings held October 13, 2005 and October 2, 2006, i.e. 7,500,000 shares, will be offered in no more than 5 years from the first of the above dates, in the manner and amounts approved by the company’s board.
RESEARCH AND DEVELOPMENT A primary objective of the company is to satisfy the needs of our shoppers. This means constantly evaluating our performance, new trends on the market and changes in consumer habits and preferences. This is attained by ongoing market research, analysis of internal information and of the evolution of the industry on more developed markets. The increasingly exigent customer demand has also obligated us to stay innovative in our shopping centers. We are constantly renovating things so that we continue to be the undisputed leaders in the industry.
RISK FACTORS The risk factors inherent to the business of Parque Arauco S.A. consist of variations in the level of activity in the economy and the competition in the sector.
10
information on the company
57
INVESTMENT AND FINANCE POLICIES The company has an investment schedule. The policy aims at it remaining the leader in the sector by setting us apart in different ways while developing new areas of business and an adequate level of working capital and debt where the debt-equity ratio is no greater than 1.4, in line with the company’s cash flows. DIVIDEND POLICY The dividend policy is to distribute at least 30% of the net profits in each fiscal year. DIVIDENDS PAID PER SHARE IN THE LAST 8 YEARS DIVIDEND NO.
DATE PAID
PESOS PER SHARE IN CURRENCY ON EACH DATE
FISCAL YEAR
11
03.05.01
17.8500
2000
12
09.05.02
4.3000
2001
13
08.05.03
10.0000
2002
14
05.05.04
5.0000
2003
15
09.05.05
9.0000
2004
16
08.05.06
10.0000
2005
17
08.05.07
10.0000
2006
18
06.05.08
9.5000
2006
parque arauco staff SENIOR EXECUTIVES NAME
Acuña Velasco, José Luis
TAXPAYER I.D.
13.039.425-6
TITLE
CFO, Peru Division
Aninat De La Maza, Augusto
10.552.61-0
Commercial Development Manager
Azcona Virrueta, Francisco
6.289.488-1
Corporate New Business Officer
Bellolio Roth, Blas Castro Orrego, Jorge
12.404.377-8 9.768.458-8
Corporate Legal Officer Comptroller
Felbol Guajardo, Fernando
10.931.980-5
Marketing Manager
Guzmán Honorato, Felipe
10.655.726-8
New Business Development Manager
Herrera Vasquéz, Eduardo
07257688 (DNI)
CEO, Peru Division
Ibarboure Barnetche, Solange
6.521.170-K
Corporate Persons & Organization Officer
Infante Ureta, Rodrigo
9.267.610-2
Services and Infrastructure Manager
Mujica Arriagada, Miguel
10.795.415-5
Olivos Bambach, Andrés
7.013.115-3
Executive Vice-President
Quinteros Anwandter, Gonzalo
5.894.656-7
Corporate Commercial Officer
Romero Restrepo, Juan Pablo
79.778.451 (DNI)
Spoerer Hurtado, Juan Pablo
10.877.023-6
Torrealba Ruiz-Tagle, Andrés
7.622.704-7
Engineering and Projects Manager
CEO, Inversiones Colombianas Arauco Ltda. Corporate CFO PAK Commercial Manager
PAGE
ANNUAL REPORT
PARQUE ARAUCO
NUMBER OF EMPLOYEES PARENT
SUBSIDIARIES
TOTAL
Managers and Executives
29
4
33
Professionals and Technicians
51
33
84
Workers
22
11
33
TOTAL
102
48
150
PAYMENTS TO DIRECTORS GENERAL SUMMARY OF PAYMENTS TO DIRECTORS IN 2008 DIRECTOR
TAXPAYER I.D.
ALLOWANCE CH$000’S
COMMITTEE CH$000’S
TOTAL
Sr. José Said Saffie
2.305.902-9
39,332
0
39,332
Sr. Guillermo Said Yarur
6.191.544-3
19,666
5,793
25,459
Sr. Patricio Claro Grez
5.206.994-7
19,666
6,393
26,059
Sr. Rodrigo Abumohor Carniglia
6.978.209-4
19,666
0
19,666
Sr. Salvador Said Somavía
6.379.626-3
19,666
0
19,666
Sr. Rafael Aldunate Valdés
5.193.449-0
19,666
7,189
26,855 19,666
Sr. Raimiundo Valenzuela Lang Sr. Thomas McDonald Sr. Timothy Purcell
7.836.580-3
19,666
0
28553698 (Pass)
0
0
0
14.577.313-K
19,666
0
19,666
GENERAL SUMMARY OF PAYMENTS TO DIRECTORS IN 2007 DIRECTOR
TAXPAYER I.D.
ALLOWANCE CH$000’S
Sr. José Said Saffie
2.305.902-9
36,151
Sr. Guillermo Said Yarur
6.191.544-3
Sr. Patricio Claro Grez
5.206.994-7
Sr. Rodrigo Abumohor Carniglia
COMMITTEE CH$000’S
TOTAL
0
36,151
18,076
0
18,076
18,076
4,234
22,310
6.978.209-4
18,076
0
18,076
Sr. Salvador Said Somavía
6.379.626-3
18,076
0
18,076
Sr. Rafael Aldunate Valdés
5.193.449-0
12,196
2,319
14,515
Sr. Raimiundo Valenzuela Lang
7.836.580-3
12,196
0
12,196
28553698 (Pass)
0
0
0
14.577.313-K
18,076
0
18,076
Sr. Thomas McDonald Sr. Timothy Purcell
SALARIES OF SENIOR EXECUTIVEs A total of CH$2.038 billion was paid to the senior executives in 2008 for salary. Approximately 11% corresponds to variable salary. This amount represents all salary earned and does not include the deduction for the scheduled retirement of employees that was implemented in November 2008.
10
information on the company
59
CORPORATE ORGANIZATION CHART BOARD OF DIRECTORS
COMPTROLLER & AUDIT COMMITTEE
Corporate Legal Officer
EXECUTIVE VICE-PRESIDENT
CORPORATE COMMERCIAL MANAGER
CORPORATE NEW BUSINESS OFFICER
CORPORATE PERSONS & ORGANIZATIONS OFFICER
CORPORATE CFO
CEO, CHILE DIVISION
CEO, PERU DIVISION
CEO, COLOMBIA DIVISION
ORGANIZATION OF PARQUE ARAUCO S.A., SUBSIDIARIES AND AFFILIATES INMOBILIARIA MALL VIÑA DEL MAR S.A.
COMERCIAL ARAUCO LTDA.
95.00%
99.9999%
PARQUE ARAUCO S.A.
CONSTRUCTORA Y ADMINISTRADORA UNO S.A.
33.33%
51%
99.99%
DESARROLLOS INMOBILIARIOS SAN ANTONIO S.A.
99.9963%
SOCIEDAD DE INVERSIONES INTERNACIONALES PARQUE ARAUCO S.A.
TODO ARAUCO S.A.
0.003704%
83% 1%
INMOBILIARIA PASEO DE LA ESTACION S.A.
INVERSIONES PARQUE ARAUCO UNO S.A.
99%
95.00%
99.9999% 1%
PLAZA EL ROBLE S.A.
INVERSIONES PARQUE ARAUCO DOS S.A.
99%
PARQUE ARAUCO ARGENTINA S.A.
99% 5.00%
INVER. INTERNACIONALES COLOMBIA S.A.
99.94% 1.00%
0.06%
INMUEBLES COMERCIALES DEL PERU S.A.
0.0001% 8.1710%
19.5111%
ALTO PALERMO S.A.
95%
76.3992%
5% INVERSIONES COLOMBIANAS
PARQUE EL GOLF S.A.C.
ARAUCO LTDA.
45.0%
INMUEBLES PANAMERICANA S.A.C.
PAGE
ANNUAL REPORT
PARQUE ARAUCO
stock exchange data STATISTICS ON PARAUCO STOCK SHARES TRADED
TOTAL TRADED (CH$ MILLIONS)
AVERAGE PRICE (CHILEAN PESOS)
1st Quarter 2005
13,345,480
4,280
2nd Quarter 2005
30,990,867
4,280
321 321
3rd Quarter 2005
19,036,135
7,615
400
4th Quarter 2005
14,506,980
4,750
327 341
1st Quarter 2006
11,953,884
4,077
2nd Quarter 2006
36,477,538
12,728
349
3rd Quarter 2006
17,979,946
6,008
334
4th Quarter 2006
35,539,742
13,545
381 463
1 Quarter 2007
39,475,797
18,294
2nd Quarter 2007
44,993,764
26,893
598
3rd Quarter 2007
21,270,775
13,967
657
4th Quarter 2007
46,017,517
27,994
608 500
st
1 Quarter 2008
30,815,283
15,055
2nd Quarter 2008
54,142,841
28,973
533
3rd Quarter 2008
25,605,585
11,351
441
4th Quarter 2008
106,369,358
37,950
335
st
EVOLUTION OF PARAUCO STOCK IN 2008 (BASE: 100) 1.05
0.95
0.85
0.75
0.65
0.55
-50% 0.45 JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
10
information on the company
61
SUBSIDIARIES AND AFFILIATES SUBSIDIARIES
EQUITY IN Ch$000’S
COMERCIAL ARAUCO LTDA. CONSTRUCTORA Y ADMINISTRADORA UNO S.A.
BUSINESS
BOARD AND DIRECT MANAGERS
DIRECT INTEREST (%)
PERCENTAGE OF ASSETS (%)
1,488
Construction and lease of stores
CEO: Andrés Olivos Bambach
95,0000
0,0003
33,578,728
Construction and lease of stores
Chairman: Andrés Olivos Bambach CEO: Gonzalo Quinteros A.
99,9999
6,4782
329,810
Construction and lease of stores
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
51,0000
0,0325
Investment company
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
83,0000
3,0956
DESARROLLOS INMOBILIARIOS SAN ANTONIO S.A. INMOBILIARIA PASEO DE LA ESTACION S.A.
19,332,268
INVERSIONES PARQUE ARAUCO DOS S.A.
700
Construction and lease of stores
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
99,0000
0,0001
INVERSIONES PARQUE ARAUCO UNO S.A.
1,475,409
Construction and lease of stores
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
99,0000
0,2818
PLAZA EL ROBLE S.A.
20,001,387
Construction and lease of stores
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
99,9999
3,8588
SOCIEDAD DE INVERSIONES INTERNAC. PARQUE ARAUCO S.A.
29,286,055
Investment company
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
99,9963
5,6498
TODO ARAUCO S.A.
31,752
Organization of publicity events, promotions
Chairman: Andrés Olivos Bambach CEO: Juan Pablo Spoerer H.
99,9900
0,0061
ALTO PALERMO S.A.
242,492,484
Construction and lease of stores
Chairman: Eduardo S. Elsztain · Vice-Chairman: Saúl Zang · Directors: Daniel R. Elsztain, Abraham Perelman, Ira Chaplik, Fernando A. Elsztain, Gabriel A.G. Reznik, José Said Saffie, Andrés Olivos B. · CEO: Alejandro G. Elsztain · CFO: Gabriel Blasi
27,6811
12,9500
44,654,848
Construction and lease of stores
Chairman: Carlos Enrique Madina · Directors: Andrés Olivos Bambach, Lázaro Calderón Volochinsky · CEO: Sergio Novoa Balmaceda · Deputy CFO: Jaime González Mallea
33,3333
2,8717
INMOBILIARIA MALL VIÑA DEL MAR S.A.
STOCK TRANSACTIONS WITH RELATED PERSONS TRANSACTION DATE DAY/MO./YR
SELLER/RELATIONSHIP TO THE COMPANY
SELLER’S TAXPAYER I.D.
BUYER/RELATIONSHIP TO THE COMPANY
BUYER’S TAXPAYER I.D.
SHARES TRADED
SERIES
PERCENTAGE CAPITAL SUBSCRIBED (%)
TRANSACTION UNIT PRICE (Ch$)
TRANSACTION PAID AT ONCE
EXCHANGE CLOSING PRICE
TRANSACTION PERFORMED ON EXCHANGE
SHARE OF SELLER’S CAPITAL (%)
SHARE OF BUYER’S CAPITAL (%)
9/1/08
SOCIEDAD INVERSIONES RAUTEN LTDA RELATED COMPANY
77.092.640-8
INVERSIONES RANCO DOS S.A. RELATED COMPANY
76.002.243-8
383,647
UNIQUE
0.06317777%
370.00
YES
522.23
NO
0.27122091
0.06317777%
9/1/08
SOCIEDAD INVERSIONES RAUTEN LTDA RELATED COMPANY
77.092.640-8
INVERSIONES RANCO TRES S.A. RELATED COMPANY
76.002.244-6
383,647
UNIQUE
0.06317777%
370.00
YES
522.23
NO
0.20804315
0.06317777%
9/1/08
SOCIEDAD INVERSIONES RAUTEN LTDA RELATED COMPANY
77.092.640-8
INVERSIONES RANCO CUATRO S.A. RELATED COMPANY
76.002.246-2
383,647
UNIQUE
0.06317777%
370.00
YES
522.23
NO
0.14486538
0.06317777%
9/1/08
SOCIEDAD INVERSIONES RAUTEN LTDA RELATED COMPANY
77.092.640-8
INVERSIONES RANCO S.A. RELATED COMPANY
76.002.235-7
383,647
UNIQUE
0.06317777%
370.00
YES
522.23
NO
0.08168761
0.06317777%
23/1/08
FORSON III S.A. RELATED COMPANY
76.632.430-4
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
500
UNIQUE
0.08233841%
415.00
YES
415.00
YES
0.24955126
0.13133224%
23/1/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
300,000
UNIQUE
0.04940305%
415.00
YES
415.00
YES
0.28248662
0.18073528%
PAGE
ANNUAL REPORT
PARQUE ARAUCO
TRANSACTION DATE DAY/MO./YR
SELLER/RELATIONSHIP TO THE COMPANY
SELLER’S TAXPAYER I.D.
BUYER/RELATIONSHIP TO THE COMPANY
BUYER’S TAXPAYER I.D.
SHARES TRADED
SERIES
PERCENTAGE CAPITAL SUBSCRIBED (%)
TRANSACTION UNIT PRICE (Ch$)
TRANSACTION PAID AT ONCE
EXCHANGE CLOSING PRICE
TRANSACTION PERFORMED ON EXCHANGE
SHARE OF SELLER’S CAPITAL (%)
SHARE OF BUYER’S CAPITAL (%)
23/1/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
200,000
UNIQUE
0.03293536%
415.00
YES
415.00
YES
0.24955126
0.21367065%
28/1/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
200,000
UNIQUE
0.03293536%
458.00
YES
469.00
YES
0.21661589
0.18809485%
29/1/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
300,000
UNIQUE
0.04940305%
469.00
YES
475.00
YES
0.16721284
0.16504010%
4/2/08
FORSON III S.A RELATED COMPANY
76.632.430-4
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
500,000
UNIQUE
0.08233841%
490.00
YES
502.00
YES
0.16721284
0.20067896%
22/2/08
INVERSIONES RANCO LTDA / DIRECTOR RELATED
77.133.070-3
INVERSIONES RANCO UNO S.A RELATED COMPANY
76.002.237-3
11,855,203
UNIQUE
1.95227715%
YES
520.38
NO
7.44519901
1.95227715%
22/2/08
INVERSIONES RANCO LTDA / DIRECTOR RELATED
77.133.070-3
INVERSIONES RANCO DOS S.A RELATED COMPANY
76.002.243-8
11,855,203
UNIQUE
1.95227715%
YES
520.38
NO
5.49292186
2.01545492%
22/2/08
INVERSIONES RANCO LTDA / DIRECTOR RELATED
77.133.070-3
INVERSIONES RANCO TRES S.A RELATED COMPANY
76.002.244-6
11,855,203
UNIQUE
1.95227715%
YES
520.38
NO
3.54064471
2.01545492%
22/2/08
INVERSIONES RANCO LTDA / DIRECTOR RELATED
77.133.070-3
INVERSIONES RANCO CUATRO S.A RELATED COMPANY
76.002.246-2
11,855,203
UNIQUE
1.95227715%
YES
520.38
NO
1.58836756
2.01545492%
22/2/08
INVERSIONES RANCO LTDA / DIRECTOR RELATED
77.133.070-3
INVERSIONES RANCO S.A RELATED COMPANY
76.002.235-7
9,645,362
UNIQUE
1.58836756%
YES
520.38
NO
0.00000000
1.65154533%
1/4/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
200,000
UNIQUE
0.03293536%
540.00
YES
555.00
YES
0.13427748
0.08062001%
4/4/08
FORSON III S.A RELATED COMPANY
76.632.430-4
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
200,000
UNIQUE
0.03293536%
555.00
YES
574.17
YES
0.13427748
0.06744586%
16/4/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
100,000
UNIQUE
0.01646768%
590.00
YES
595.00
YES
0.11780980
0.05969634%
17/4/08
FORSON II S.A RELATED COMPANY
76.632.370-7
CELFIN CAPITAL S.A CORREDORES / NONE
84.177.300-4
100,000
UNIQUE
0.01646768%
599.00
YES
599.00
YES
0.10134212
0.21874039%
17/4/08
FORSON III S.A RELATED COMPANY
76.632.430-4
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
200,000
UNIQUE
0.03293536%
595.00
YES
599.00
YES
0.10134212
0.07616402%
18/4/08
FORSON III S.A RELATED COMPANY
76.632.430-4
BCI CORREDOR DE BOLSA S.A / NONE
96519800-8
200,000
UNIQUE
0.03293536%
600.00
YES
598.90
YES
0.06840675
0.011178674%
23/4/08
FORSON II S.A RELATED COMPANY
76.632.370-7
CELFIN CAPITAL S.A CORREDORES DE BOLSA NONE
84.177.300-4
100,000
UNIQUE
0.01646768%
599.00
YES
590.90
YES
0.08487443
0.22206241%
25/4/08
FORSON II S.A RELATED COMPANY
76.632.370-7
CELFIN CAPITAL S.A CORREDORES DE BOLSA NONE
84.177.300-4
15,400
UNIQUE
0.00253602%
610.00
YES
592.12
YES
0.08233841
0.21255002%
19/5/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
100,000
UNIQUE
0.01646768%
535.00
YES
535.00
YES
0.06587073
0.07777966%
29/5/08
FORSON II S.A RELATED COMPANY
76.632.370-7
CELFIN CAPITAL S.A CORREDORES DE BOLSA NONE
84.177.300-4
100,000
UNIQUE
0.01646768%
519.96
YES
511.00
YES
0.04940305
0.19287756%
29/5/08
FORSON II S.A RELATED COMPANY
76.632.370-7
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
100,000
UNIQUE
0.01646768%
515.00
YES
511.00
YES
0.03293536
0.06131198%
30/5/08
FORSON II S.A RELATED COMPANY
76.632.370-7
CELFIN CAPITAL S.A CORREDORES DE BOLSA NONE
84.177.300-4
200,000
UNIQUE
0.03293536%
514.56
YES
491.07
YES
0.00000000
0.23256385%
10
information on the company
63
TRANSACTION DATE DAY/MO./YR
SELLER/RELATIONSHIP TO THE COMPANY
SELLER’S TAXPAYER I.D.
BUYER/RELATIONSHIP TO THE COMPANY
BUYER’S TAXPAYER I.D.
SHARES TRADED
SERIES
PERCENTAGE CAPITAL SUBSCRIBED (%)
TRANSACTION UNIT PRICE (Ch$)
TRANSACTION PAID AT ONCE
EXCHANGE CLOSING PRICE
TRANSACTION PERFORMED ON EXCHANGE
SHARE OF SELLER’S CAPITAL (%)
SHARE OF BUYER’S CAPITAL (%)
3/6/08
FORSON III S.A RELATED COMPANY
76.632.430-4
FINANZAS Y NEGOCIOS S.A CORREDORES DE BOLSA / NONE
95.319.000-1
215,000
UNIQUE
0.03540552%
490.00
YES
480.00
YES
0.03300124
0.03540552%
5/6/08
FORSON III S.A RELATED COMPANY
76.632.430-4
FINANZAS Y NEGOCIOS S.A CORREDORES DE BOLSA / NONE
95.319.000-1
200,000
UNIQUE
0.03293536%
490.00
YES
466.00
YES
0.00006587
0.06834088%
24/7/08
INVERSIONES RANCO S.A RELATED COMPANY
76.002.235-7
CORP. CAPITAL CORREDORES DE BOLSA S.A / NONE
96.665.450-3
9,439,009
UNIQUE
1.55438600%
YES
439.90
YES
0.09715932
1.67593248%
22/8/08
SN HOLDING S.A DIRECTOR RELATED
95.678.000-4
LARRAIN VIAL S.A CORREDORA DE BOLSA NONE
80,537,000-9
7,782,027
UNIQUE
1.28151947%
440.00
YES
470.00
YES
0.00000000
1.97881136%
9/10/08
INVERSIONES RANCO UNO S.A. RELATED COMPANY
76.002.237-3
CORP CAPITAL CORREDORES DE BOLSA S.A / NONE
96.665.450-3
11,685,203
UNIQUE
1.92428209%
375.00
YES
367.73
YES
0.02799506
3.60269312
9/10/08
INVERSIONES RANCO DOS S.A. / RELATED COMPANY
76.002.243-8
CORP CAPITAL CORREDORES DE BOLSA S.A / NONE
96.665.450-3
12,068,850
UNIQUE
1.98745986%
375.00
YES
367.73
YES
0.02799506
5.59015298
9/10/08
INVERSIONES RANCO CUATRO S.A RELATED COMPANY
76.002.246-2
CORP CAPITAL CORREDORES DE BOLSA S.A / NONE
96.665.450-3
12,068,850
UNIQUE
1.98745986%
375.00
YES
367.73
YES
0.02799506
7.57761284%
9/10/08
SAID YARUR JORGE DIRECTOR RELATED
6.240.073-0
SANTANDER INVESTMENT S.A CORREDORES DE BOLSA / NONE
96.683.200-2
463,546
UNIQUE
0.07633528%
350.00
YES
367.73
YES
0.00000000
0.27730128%
9/10/08
INVERSIONES RANCO TRES S.A RELATED COMPANY
76.002.244-6
SANTANDER INVESTMENT S.A CORREDORES DE BOLSA / NONE
96.683.200-2
11,508,850
UNIQUE
1.89524084%
350.00
YES
367.73
YES
0.12021408
2.17254212%
10/10/08
FORSON III S.A RELATED COMPANY
76.632.430-4
BCI CORREDOR DE BOLSA S.A / NONE
96.519.800-8
400
UNIQUE
0.00006587%
368.73
YES
346.67
YES
0.00000000
1.40430564%
13/10/08
INVERSIONES SEAL S.A RELATED COMPANY
78.265.280-K
VANTRUST CAPITAL CORREDORES DE BOLSA S.A / NONE
76.547.150-8
3,751,348
UNIQUE
0.61776007%
YES
375.92
YES
0.00000000
0.61776007%
14/10/08
JOSE DOMINGO ELUCHANS ASESORIAS LTDA. RELATED COMPANY
77.406.660-8
SOC. DE INVERSIONES E B LTDA. RELATED COMPANY
76.846.690-4
2,500,000
UNIQUE
0.41169205%
YES
370.00
NO
1.42938559
0.41169205%
14/10/08
SOC. DE INVERSIONES E B LTDA. RELATED COMPANY
76.846.690-4
BANCHILE CORREDORES DE BOLSA S.A NONE
96.571.220-8
2,500,000
UNIQUE
0.41169205%
YES
370.00
YES
0.00000000
6.60048958%
21/10/08
VANTRUST CAPITAL CORREDORES DE BOLSA S.A / NONE
76.547.150-8
INVERSIONES SEAL S.A RELATED COMPANY
78.265.280-K
3,751,348
UNIQUE
0.61776007%
YES
367.00
NO
0.00000000
0.61776007%
28/10/08
INVERSIONES ASESORIAS E INMOBILIARIA ML LTDA. MANAGER RELATED
76.182.540-2
BANCHILE CORREDORES DE BOLSA S.A NONE
96.571.220-8
316,842
UNIQUE
0.05217653%
YES
345.00
YES
0.00000000
6.25757563%
10/11/08
INVERSIONES SEAL S.A. RELATED COMPANY
78.265.280-K
VANSTRUST CAPITAL CORREDORES DE BOLSA S.A./ NONE
76.547.150-8
3,751,348
UNIQUE
0.61776007%
YES
345.00
NO
0.00000000%
0.61776007%
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
10,000
UNIQUE
0.00164677%
335.01
YES
340.00
YES
6.31212120%
2.94960033%
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
5,851
UNIQUE
0.00096352%
360.00
YES
340.00
YES
6.31115768%
2.95056385%
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
5,000
UNIQUE
0.00082338%
359.99
YES
340.00
YES
6.31033429%
2.95138724%
400.00
350.00
PAGE
ANNUAL REPORT
PARQUE ARAUCO
TRANSACTION DATE DAY/MO./YR
SELLER/RELATIONSHIP TO THE COMPANY
SELLER’S TAXPAYER I.D.
BUYER/RELATIONSHIP TO THE COMPANY
BUYER’S TAXPAYER I.D.
SHARES TRADED
SERIES
PERCENTAGE CAPITAL SUBSCRIBED (%)
TRANSACTION UNIT PRICE (Ch$)
TRANSACTION PAID AT ONCE
EXCHANGE CLOSING PRICE
TRANSACTION PERFORMED ON EXCHANGE
SHARE OF SELLER’S CAPITAL (%)
SHARE OF BUYER’S CAPITAL (%)
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
10,000
UNIQUE
0.00164677%
365.00
YES
340.00
YES
6.30868753%
2.95303401%
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
1,090
UNIQUE
0.00017950%
350.00
YES
340.00
YES
6.30850803
2.95321350
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
35,750
UNIQUE
0.00588720%
340.00
YES
340.00
YES
6.30262083
2.95910070
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
176
UNIQUE
0.00002898%
345.00
YES
340.00
YES
6.30259185
2.95912968
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
3,000
UNIQUE
0.00049403%
360.00
YES
340.00
YES
6.30209782
2.95962371
18/11/08
BANCHILE CORREDORES DE BOLSA / INGUNA
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
324
UNIQUE
0.00005336%
329.99
YES
340.00
YES
6.30204446
2.95967707
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
8,300
UNIQUE
0.00136682%
329.00
YES
340.00
YES
6.30067765
2.96104389
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
160,490
UNIQUE
0.02642898%
340.00
YES
340.00
YES
6.27424866
2.98747287
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
3,922
UNIQUE
0.00064586%
335.00
YES
340.00
YES
6.27360280
2.98811873
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
41,155
UNIQUE
0.00677727%
350.00
YES
340.00
YES
6.26682552
2.99489601
18/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
12,744
UNIQUE
0.00209864%
329.90
YES
340.00
YES
6.26472688
2.99699465
20/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
8,954
UNIQUE
0.00147452%
345.00
YES
340.00
YES
6.26927493
2.99846916
20/11/08
BANCHILE CORREDORES DE BOLSA / NONE
96.571.220-8
INVERSIONES DEL PACIFICO S.A. DIRECTOR RELATED
78.031.260-2
9,461
UNIQUE
0.00155801%
370.00
YES
340.00
YES
6.26771692
3.00002717
21/11/08
VANTRUST CAPITAL CORREDORES DE BOLSA S.A / NONE
76.547.150-8
INVERSIONES SEAL S.A. RELATED COMPANY
78.265.280-K
3,751,348
UNIQUE
0.61776007%
YES
329.99
YES
0.00000000
0.61776007
24/11/08
INVERSIONES RANCO S.A. DIRECTOR RELATED
79.002.235-7
CORP CAPITAL CORREDORES DE BOLSA NONE
96.665.450-3
3,000
UNIQUE
0.00215000%
306.00
YES
313.86
YES
2.14328000%
7.92644776%
24/11/08
INVERSIONES RANCO S.A. DIRECTOR RELATED
79.002.235-7
CORP CAPITAL CORREDORES DE BOLSA NONE
96.665.450-3
4,627
UNIQUE
0.00331000%
301.00
YES
313.86
YES
2.13997000%
7.92644776%
24/11/08
INVERSIONES RANCO S.A. DIRECTOR RELATED
79.002.235-7
CORP CAPITAL CORREDORES DE BOLSA NONE
96.665.450-3
1,792,373
UNIQUE
1.28180000%
300.00
YES
313.86
YES
0.85817000
7.92644776
24/11/08
INVERSIONES RANCO S.A. DIRECTOR RELATED
79.002.235-7
CORP CAPITAL CORREDORES DE BOLSA NONE
96.665.450-3
6,439,009
UNIQUE
1.06036000%
300.01
YES
313.86
YES
No informado en Anexo B
7.92644776
10
information on the company
65
signature of the annual report As provided in General Rule 30 of the Securities and Insurance Commission, this Annual Report is signed by an absolute majority of the company’s directors and by the Executive Vice-President.
Sr. Andrés Olivos Bambach Executive Vice-President
Sr. José Said Saffie Chairman
Sr. Rodrigo Abumohor Carniglia Director
Sr. Rafael Aldunate Valdés Director
Sr. Patricio Claro Grez Director
Sr. Thomas Mc Donald Director
Sr. Timothy Purcell Director
Sr. Salvador Said Somavía Director
Sr. Guillermo Said Yarur Director
Sr. Raimundo Valenzuela Lang Director
PAGE
ANNUAL REPORT
PARQUE ARAUCO
