2009 Annual Report

parque arauco annual report 2009 parque arauco annual report 2009 In 2009, we achieved what was impossible for many:...

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parque arauco annual report 2009

parque arauco annual report 2009

In 2009, we achieved what was impossible for many: doing more with less. Each member of our team gave the best of himself or herself so that we could address a complex situation better. Efficiency was the name of the game in each process and we multiplied it, diversified it, intensified it. We held, and will always hold, to Parque Arauco’s vision of growth and development: its attitude.

more with less? how can you do

BY BEING

BY BEING

BY BEING

RESPONSIBLE

DECISIVE

CREDIBLE

We act responsibly toward members of the company and we simultaneously maintain a close relationship with our customers, retailers, shareholders and suppliers.

We took on the challenges with the right attitude. Our team is top and highly experienced, capable of making difficult decisions efficiently and responsibly to obtain excellent results for the company.

Our reputation was strengthened. We united forces, we supported our retailers in their decisions and plans, and we continue to be, as always, their strategic partners. This gives us credibility and distinguishes us in the industry.

TABLE OF CONTENTS 8 MILESTONES IN 2009 ADAPTATION AND GROWTH 10 2009 IN PARQUE ARAUCO RELEVANT INDICATORS 14 OUR MANAGEMENT EFFICIENCY AS A COMPETITIVE STRATEGY 16 MESSAGE FROM THE CHAIRMAN 21 c.01

BOARD OF DIRECTORS AND MANAGEMENT

28 c.02

BRIEF HISTORY

36 c.03

2009 WHERE WE ARE IN THE REGION

53 c.04

2010 FUTURE CHALLENGES

60 c.05

parque arauco, MORE AND BETTER MALLS

67 c.06

OUR PEOPLE, COMMITTED TO EXCELLENCE

73 c.07

INFORMATION ON THE COMPANY

report 2009

milestones in 2009 adaptation and growth We adapt to the circumstances on the market and we grow, so we become a relevant player.

3 PROJECTS We were the only property developer that inaugurated three projects during a time of crisis: Arauco San Antonio, Dot Baires Shopping and a Mega Express Villa, a stripcenter in Peru.

HIGH OCCUPANCY

16%

Our vacancy and delinquency indicators remained at minimum levels.

Was the increase in our consolidated income compared to 2008.

170%

255 MILLION

Increase in our profits compared to 2008.

We attract more shoppers every day.

491,000 M² We expanded our strategic properties in Chile, Peru and Colombia, despite the economic crisis.

21% Increase in our EBITDA

753,095 M² We grew 11% in GLA.

9

54,850 37,593

45,295

10,851

29,253

2008

2009

63,563

37,508 28,035 6,127 2007

28,230 22,901 15,257 2006

25,739 11,446 2005

24,703 9,141 2004

2009 in parque arauco relevant indicators TOTAL REVENUES

21,748

CH$ millions

21,028

2009 was an historic year for Parque Arauco in terms of income. Our profit levels were above CH$29,000 million and turnover was better than previous years.

EBITDA CH$ millions

NET PROFIT CH$ millions

as of December

2009 in parque arauco relevant indicators

During 2009, we were capable of growing and continuing with investments begun the previous year, both in Chile and throughout Latin America. The new Arauco San Antonio Mall was opened in Chile, we inaugurated Dot Baires Shopping in Argentina and the Mega Express Villa Strip Center in Peru. In Colombia, we also announced the construction of a mall in Bogotá.

Millions of pesos | as of December 2004

chile

COLOMBIA

STORE SALES 670,678

2005

PERU 765,660

2006

2

947,839

2007

65% progress in construction

1,083,920

2008

130,795 1,257,086

2009

1,293,172

80,488 34

perU

ANNUAL TRAFFIC Thousands of people | as of December 2004 2005

CHILE

136,859 144,126

2006

159,103

2007

169,458

2008

239,248

2009

255,122

11

621,617

540,759

383,197

289,410

129

92

Square Meters | as of December 2004 2005 2006 2007 2008 2009

378,822

Malls

400,178

Total sales (CH$ millions)

470,754 551,494

GLA (square meters)

679,483 753,095

ARGENTINA

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GLA

Number of visitors annually (millions)

Parque Arauco Kennedy Arauco Maipú Plaza El Roble Paseo Arauco Estación Arauco Express Pajaritos Arauco San Antonio Mall Marina Arauco Mall Center Curicó

Megaplaza Norte Mega Express Villa

argentina Abasto Alto Palermo Alto Avellaneda Paseo Alcorta Patio Bullrich Alto Noa Buenos Aires Design Mendoza Plaza Alto Rosario Córdoba Shopping Dot Baires Shopping

colombia Pereira1 1. 65% progress in construction at December 31, 2009

report 2009

our management efficiency as a competitive strategy 2009 was a particularly complex year and our financial results are one example of the good work we have been doing and that the strategy adopted by the company was not only the right one, but also a very successful one. How did we do it? We did more with less, with great efficiency, a sound contingency plan and a clear strategy of expansion and growth.

CONTINGENCY PLAN

We implemented a plan to face the crisis, which yielded great fruit for the company: we lowered costs, raised income and improved our margins.

our EBITDA margin, a the percentage reduction 71% | was 37% | was growth of 3.2 percentage points. in late payments. We maintained high occupancy rates in our malls Parque Arauco | 99.9% Plaza El Roble | 99.7% Paseo Arauco Estación | 98.3% Argentina | 98%

29,253 million | 170% compared to 2008 Ch$ 45,295 million | un 21% in EBITDA Ch$

We increased our profits:

GROWTH We improved the efficiency of our assets, consolidated our investments and prepared the company for a new phase of growth.

RETAILERS AND END CUSTOMERS We offered a combination of good locations and an excellent business and entertainment mix in each of our malls that were important in making 2009 a successful and profitable year.

RESOURCE OPTIMIZATION We implemented concrete measures to improve efficiency and consolidate the administration of our operations.

3 new projects 3 new projects began operation: Arauco San Antonio; Dot Baires Shopping in Argentina, Mega Express Villa in Peru.

1 property

mall in Bogotá

enlargement

We acquired a property in Barranquilla.

We announced the construction of our first mall in Bogotá, Colombia.

In Chile we concluded a significant enlargement of Arauco Maipu and Paseo Arauco Estación.

34 million shoppers We continued to consolidate Megaplaza Norte in Lima as one of the leading shopping centers in Peru, visited by more than 35 million shoppers a year.

new stores + entertainment We added new stores and more entertainment in our different malls to complement our existing offers.

SAP platform In 2009, we centralized administrative and financial operations in Parque Arauco thanks to the SAP platform. We restructured internal processes to make operation more efficient and transparent and produce business reports by unit.

energy efficiency We were awarded the Energy Efficiency Prize in the Large Enterprise Category in 2009, in recognition of the energy savings measures implemented at our Parque Arauco Mall.

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message from the chairman Our growth strategy is focused on the development of shopping centers, strongly emphasizing the customer, oriented towards innovation and backed by sound entrepreneurial values.

DEAR SHAREHOLDERS

O

n behalf of the Board of Directors and of all members of Parque Arauco S.A., it is my pleasure to present the annual report and financial statements for the 2009 fiscal year, a year when we confronted an international financial crisis of great magnitude that challenged us to be more competitive, efficient, innovative and dynamic in order to overcome this difficult situation. We were particularly responsible and prudent in the speed at which we implemented our projects. We remained aligned to market conditions, to the needs of our retailers and our local partners in Chile and abroad. We focused on facing the crisis as an opportunity, so we internally strengthened the operating excellence of the company in each of our existing assets. If there is any word that defines the central thrust of our actions in 2009, it was undoubtedly efficiency, which we put into practice through a responsible contingency plan designed to do more

with less. We built, from our investments in 2007, 2008 and 2009, a good scenario from which to face the crisis. We reduced expenses and we completed the stipulated plans correctly without neglecting our stores, shoppers, shareholders and suppliers. So we closed 2009 historically and the results are proof of this: In 2009, the GLA rose 11%, EBITDA grew 21% and we consolidated our assets to earn a total of CH$29,253 million in profits (nearly 58 million dollars), a 170% increase in comparison to 2008. The company’s revenues rose 16% because of the good operating performance of our malls and the addition and immediate enlargement of Paseo Arauco Estación in May 2008. Consequently, operating revenues from operations in Peru rose 10% and those of Chile 22%. There was a greater contribution from Parque Arauco Kennedy in Chile, which increased leasable area by adding the Torres del Parque Office Building. This

generated a 9% increase in operating revenues. The revenues of Arauco Maipu grew 19%, while those of Plaza El Roble increased 12%. In Peru, the EBITDA of the Company’s operations increased 5% compared to the same period in the previous year. We inaugurated the Megaexpress Villa stripcenter, adding an innovative format in the Chorrillos Zone in Lima. 90% of its capacity was already leased by the time it opened its doors. Towards the end of the fiscal year, we progressed in the Parque Arequipa mall project, our third project in Peru that is predicted to generate an EBITDA of around US$5 million during operation. In Colombia, we signed a joint venture with one of the largest financial institutions in the country, namely Banca de Inversión Bancolombia S.A. We continued forward with the construction of a mall in Pereira for an investment of more than 90 million dollars that we expect to inaugurate at the end of 2010. Additionally, we announced

The company’s revenues rose 16% because of the good operating performance of our malls.

our arrival in Bogotá, the leading market in the country, where we will raise a shopping center of nearly 70,000 mts2 of GLA. which We expect this mall to yield an annual EBITDA of around US$20 million during operation. In Argentina, we inaugurated Dot Baires Shopping, one of the most important projects for the Company and one of the most significant developments in the industry in Argentina. Hence, we are sure and trust that we are doing our job well, yet at the same time we are posing a great challenge, namely to continue to make Parque Arauco grow and reinforce its position as a leading operator in the region.

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As a company, we are proud of the employees who make up Parque Arauco S.A. The organization was ultimately strengthened by the crisis because it was capable of making difficult decisions efficiently and responsibly, while always maintaining an excellent relationship with customers, retailers, shareholders and suppliers. We are certain that each of the professionals comprising Parque Arauco S.A. will give their best to continue with the strong growth plan that is forecast, which will be rewarded by a greater turnover and better results, each day increasing the value and prestige of the company as a leader in the shopping center industry in Latin America. I also want to highlight the contribution made by the prestigious investment fund Equity International to Parque Arauco S.A.

Our commitment is to continue focusing on achieving operating excellence from our assets.

This fund, led by Sam Zell, was, without a doubt, a very important shareholder that contributed to Parque Arauco’s development. I would like to mention in particular its contribution to making Parque Arauco a more international enterprise. During 2010, Parque Arauco granted an option to IRSA under which it can buy our equity interest in Alto Palermo. We believe that the agreement is beneficial and a good opportunity for both Parque Arauco and our partners, with whom we have maintained

an excellent relationship for more than 13 years. Argentina is an interesting market. However, today our growth strategy is centered on Chile, Peru and Colombia and on assets where we have control and conduct operations directly. This year we expect new challenges and opportunities. We will continue working towards our successes with a long-term vision. We will try to understand our customers better, look for new projects in the best locations, the best partners, the best commercial mix, the best brands and most of all, we will make every effort to strengthen the sales of our strategic partners, namely our retailers. Our commitment is to continue focusing on achieving operating excellence from our assets, improving processes and incrementing productivity and competitiveness to thus obtain the best results for the Company. We want to thank our shareholders for their trust, our board of directors, our executive team and each of our workers, customers and suppliers for their contribution and commitment. And I would like to thank all who have committed to making this enterprise an organization run by a high quality, experienced team recognized in the retail industry for their energy, dedication and professionalism.

Sincerely yours,

José Said Saffie Chairman of the Board

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board of directors and management c.01 The board of directors is comprised of renowned business professionals who have demonstrated their commitment to, and confidence in, Parque Arauco S.A. They help leverage the business vision and pursue a long-term growth of the Company.

board of directors and management

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board of directors José Said Saffie

Orlando Sáenz

CHAIRMAN | TAXPAYER ID: 2.305.902-9

director | TAXPAYER ID: 3.599.669-9

Lawyer, graduated from the University of Chile, held the positions of Chairman of Banco del Trabajo and Embotelladora Andina S.A. and currently holds the positions of President of Banco Bilbao Vizcaya Argentaria, Chile; Chairman of Parque Arauco S.A.; Director of APSA, Alto Palermo S.A., Sociedad Argentina de Centros Comerciales; Director of Mega Plaza – Sociedad de Centros Comerciales in Lima, Peru; Regular Director of the Bankers Association; Advisor to the Alberto Hurtado Jesuit University; President of the BethlehemPalestinian Chile 2000 Foundation, Director of the Chile – Peru Business Council, and President of the Inter-Entrepreneurial Chilean-Arabian Council.

Civil Engineering Degree from the Catholic University of Chile. Chairman of Empresa Constructora Jardines del Bosque Limitada, O. Sáenz y Compañía Profesionales Asociados, Comercial Los Andes S.A. and Envases del Pacífico S.A.

The board of directors is comprised of renowned business professionals who have demonstrated their commitment to, and confidence in, Parque Arauco S.A. They help leverage the business vision and pursue a long-term growth of the Company.

Timothy Purcell director | TAXPAYER ID: 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, Cruz del Sur Vida S.A. and Parque Arauco S.A., among others. Rafael Aldunate Valdés director | TAXPAYER ID: 5.193.449-0

Business Degree from the Catholic University, AMP from Harvard University. Currently director of GTD Manquehue, AFC, Parque Arauco and Instituto Libertad (the Freedom Institute). Columnist and speaker on international economics. Raimundo Valenzuela Lang director | TAXPAYER ID: 7.836.580-3

Patricio Claro Grez director | TAXPAYER ID: 5.206.994-7

Civil industrial engineer graduated from the University of Chile, Director of Industrias Forestales, Cia. de Seguros BiceVida, Enersis S.A., Banco Bice and the Interbank High-Value Clearing House (Combanc S.A.). Salvador Said Somavia

Business degree from the Catholic University of Chile. MBA, Wharton School, University of Pennsylvania. Partner in R&R Wine Ltda. and Inmobiliaria Estrella del Sur Ltda. Director in Parque Arauco S.A. Guillermo Said Yarur director | TAXPAYER ID: 6.191.544-3

Completed a civil industrial degree at the University of Chile, and a post-graduate degree in Finance at Adolfo Ibañez University. Director of Parque Arauco S.A. and Comercial Café Mokka.

director | TAXPAYER ID: 6.379.626-3

Business degree from Gabriela Mistral University. Executive Director of the Said Group. Member of the Board of Parque Arauco S.A., 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. board of directors and management

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Rodrigo Abumohor Carniglia director | TAXPAYER ID: 6.978.209-4

Business degree from the Catholic University of Chile, MBA, Anderson School, UCLA; CEO of Manufacturas Interamericanas S.A. Full professor of Strategy, Catholic University of Chile.

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management We at Parque Arauco have a prime professional executive team focused mainly on extending their experience and profound vision to markets where the company is present.

Andrés Olivos Bambach

Blas Bellolio Roth

Executive Vice-President | TAXPAYER ID: 7.013.115-3

Chief Legal Officer | TAXPAYER ID: 12.404.377-8

Business degree from the University of Chile. Chairman of Inmuebles Comerciales del Peru S.A.C. and Parque Arauco Argentina. Director of Alto Palermo S.A., Construmart S.A., Inversiones Arauco Alameda S.A. and Inversiones Arauco Barranquilla S.A.S. He has focused throughout his career on the management of commercial and mass consumer enterprises doing business in Chile, Argentina and Brazil. He has participated in the evaluation and acquisition of enterprises, leading finance transactions on the international capital (ADR) and debt markets (United States, Europe and Chile) totaling more than US$1.5 billion between 1994 and 2009.

Lawyer graduated from the Catholic University of Chile. Master in Laws (LL.M.), London School of Economics. Graduate Certificate in Economics and Finance for Attorneys of the School of Business Administration of the University of Chile. His experience includes the practice of corporate, judicial and industrial property law. He has also worked for the law firms of Portaluppi, Guzman y Bezanilla, Alvarez y Cia. and Federico Villaseca y Cia.

Juan Pablo Spoerer Chief Financial Officer | TAXPAYER ID: 10.877.023-6

Business degree from the Catholic University of Chile. MBA from Duke University. He has worked for more than fourteen years in the management of the Enersis Group, and was chief financial and strategic planning officer of Chilectra from 2005 to 2007. He was a Director of Codensa, in Bogota, and Ampla, in Rio de Janeiro. In 2006, he was awarded the prize for excellence in strategic implementation while at Chilectra, granted by Harvard University professors. In 2007, he was elected “Best CFO in the Industry” by his peers, which is awarded by Capital magazine and Seminarium Penrhyn.

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Francisco Azcona Virrueta Chief New Business Officer | TAXPAYER ID: 6.289.488-8

Business degree from Adolfo Ibañez University. He has worked in several areas—commercial, marketing, real estate and general administration—in the retail and agroindustrial sectors in companies such as D&S, Santa Isabel, Empresas Iansa and MTS. He has been a director in several enterprises doing business in Chile and abroad and he also been involved in M&As in Chile and Brazil. Solange Ibarboure CHIEF PERSONS AND ORGANIZATION OFFICER | TAXPAYER ID: 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. Before joining Parque Arauco, she was the Human Resources Manger of CIGNA Chile. board of directors and management

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Miguel Mujica Arriagada CORPORATE ENGINEERING AND PROJECT MANAGER | TAXPAYER ID: 10.795.415-5

Civil Construction Degree from the Catholic University of Chile, MBA, ESE, University of the Andes Business School. Throughout his career, he has focused on property management and construction project administration, evaluating and developing projects both for the ordinary housing sector and apartment buildings as well as property for mixed uses, like shopping centers and offices. Marco Guzmán AUDIT AND CONTROL MANAGER | TAXPAYER ID: 10.415.404-2

Certified Public Accountant Auditor who graduated from the Metropolitan Technology University. Specialist in SOX, US GAAP, IFRS, Forensic Auditing and Regulation of Corporations. He has an ample record in external and internal auditing of multinationals in Chile and abroad. Prior to working for Parque Arauco, he held management and directive positions in enterprises such as PricewaterhouseCoopers, Unilever America and Unilever Mexico, and the Linde Group. Eduardo Herrera CEO, PERU DIVISION | National I.D. : 07257688

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 Manager of Profuturo AFP. He also was the Investment Banking Manager of HSBC Bank in Lima and he was employed at one time by N.M. Rothschild & Sons, Merrill Lynch, Prisma Inversiones and Banco Continental BBVA. Juan Pablo Romero CEO, Inversiones Colombianas Arauco Ltda. | National I.D. : 79.778.451

Business Administration degree from CESA (College of Higher Studies in Administration), 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. He began his career at BASF, a German company, working in Brazil and Colombia. He later moved to Avianca S.A. an airline, where he handled the financial reorganization and successful sale of the company. board of directors and management

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brief history c.02 Our company began with the construction of Parque Arauco, the first and leading mall in Chile…Now, after 28 years of a resounding success, we have 21 shopping centers throughout Latin America, making us a relevant player in the regional industry.

brief history

c.02

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31

28 years

of consolidation and growth

1982 ››Parque Arauco Kennedy is opened

brief history

c.02

1993 ››Apertura Mall Arauco Maipú

1994 ››Parque Arauco S.A. becomes a partner with Alto Palermo S.A., the leading retailer in Argentina.

1997

2006

››A 33.3% interest is acquired in ››Mall Center de Curico is Inmobiliaria Mall VIña del Mar

2007

››Parque Arauco S.A. creates opened a subsidiary in Colombia to ››Equity International acquires develop real estate projects. 13.5% of Parque Arauco S.A. It ››Parque Arauco takes over is one of the most prestigious, Plaza El Roble in Chillan. international private property investment firms. ››A strategic joint venture is formed in Peru with the Weisse Group to acquire 45% of Shopping Megaplaza Norte.

2008 ››Paseo Arauco Estación was acquired and enlarged.

››The Arauco Express Pajaritos Stripcenter was opened.

brief history

c.02

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2009 the best year in the history of parque arauco The successful strategy we adopted in 2009 led us to diversify, consolidate our assets in the countries where we do business, and pose the challenge of continuing to develop profitable products, try out new formats and expand to new markets. january ››We concluded the second stage of the Paseo Arauco Estación enlargement, which meant opening 90 new stores, adding 1,000 underground parking places, and inaugurating the New San Borja Bus Terminal.

brief history

c.02

may ››We inaugurated the Dot Baires Shopping Argentina, the largest shopping center in Buenos Aires, at 170,000 m2, 3 levels and 160 stores selling the best brands.

july ››The Said Somavia and Said Yarur families announced the purchase of the interest held by Equity International Fund, which reflects the trust that these important business groups have deposited in Parque Arauco’s future. ››We concluded the last stage of the Torres del Parque Office Project by the delivery of the second building, which represents a total leasable area of 22,000 m2. ››We celebrated Chile Day for the second consecutive year in New York, in the company of the leading Chilean companies and important authorities from our country.

august ››We completed the first stage of the Integral Arauco San Antonio Shopping Center by opening the Casino del Pacífico to the public, operated by Ivisa, an Argentine company.

october ››We signed a joint venture agreement with Banca de Inversion Bancolombia S.A., one of the largest financial institutions in this coffee-growing country, to implement commercial projects on the Colombian market together. ››We announced the construction of Paseo Marina, a new retail area located to one side of Mall Marina Arauco in Viña del Mar. It will have a leasable area of 16,000 m2 and will begin operation during 2010.

november

december

››We began the commercial

››We started the dry run of operation of Megaexpress Villa Arauco San Antonio by in Chorrillos, the first stripcenter opening a modern food court, developed by the Company in children’s play area and Peru that has one anchor store diverse stores to the public. ››We announced the and 27 smaller stores. ››We resumed the third stage of construction of our first mall in the Arauco Maipu enlargement Bogota, which marks our entry that signified a total to the most important market investment of US$25 million. in Colombia. The project will measure 180,000 m2.

brief history

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M2 400,000

gla

350,000

300,000

250,000 First mall in regions

Chile Arauco San Antonio

200,000

Paseo Arauco Estación Plaza El Roble

150,000

Arauco Express Pajaritos Mall Center Curicó

100,000

First mall in Chile

Marina Arauco Arauco Maipu

50,000

Parque Arauco Kennedy

1982

| 1985 | 1988 | 1991 | 1994 | 1997 | 2000 | 2001 | 2002 | 2003 |

| 2004 | 2005 | 2006 | 2007 | 2008 | 2009

0

Argentina Alto Noa Shopping

50,000

Mendoza Plaza Shopping Paseo Alcorta

100,000

Alto Avellaneda Buenos Aires Design

150,000

Alto Palermo Abasto Shopping

200,000

Patio Bullrich

First mall in Argentina

Alto Rosario Shopping

250,000

Cordoba Shopping 300,000

Every 3

Year to year

350,000 First mall in Peru

Dot Baires

Peru Megaplaza Norte Mega Express

400,000 brief history

c.02

brief history

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2009 where we are in the region c.03 We added three new projects to Parque Arauco S.A.’s portfolio: Arauco San Antonio, Dot Baires Shopping and Mega Express Villa in Peru.

Chapter legend 5 million shoppers per year 10,000 m2 of leasable area 10,000 m2 of available GLA 2009 where we are in the region

c.03

2009 where we are in the region

c.03

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we started out as a mall that bore our name. now we are a regional enterprise through our holdings in shopping centers in chile, argentina, peru and colombia.

parque arauco in chile This year we worked on raising the Torres del Parque and we began the dry run of Arauco San Antonio. We were, thus, the only property developer that opened a mall in the midst of a crisis.

Consolidation of our assets We inaugurated the first mall in the Province of San Antonio

we want to continue expanding an integral model that adapts to the particular needs of each market.

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PASEO ARAUCO ESTACIÓN We focused on strengthening the commercial mix and we implemented a significant enlargement that meant opening 90 new stores. ›› We increased the number of restaurants by adding three new excellent operators. ›› We built 1,000 new underground parking places. ›› We inaugurated the new San Borja Bus Terminal from which approximately 3,000 buses depart every day.

48 millions

25 millions 123,463 m2 GLA

PARQUE ARAUCO KENNEDY We have been pioneers in adding new services and formats that satisfy our customers’ needs. ›› We inaugurated a breast-feeding room for all mall customers, making us the first shopping center to provide this level of service. ›› We added new space in the design floor, consisting of 14 new stores. ›› We were awarded a gold medal by the International Council of Shopping Centers in recognition OF our Boulevard, in the category Development and Design.

2009 where we are in the region

c.03

64,619 m2 GLA

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ARAUCO MAIPÚ This year we continued to develop the second stage of the enlargement, complementing our existing supply and strengthening the entertainment area in the shopping center. ›› We added an innovative entertainment park that has been very well received by shoppers.

14 millions

17 millions 54,267 m2 GLA

26,509 m2 GLA

PLAZA EL ROBLE We achieved a full occupancy of our stores and invested in improving our infrastructure to give our shoppers the best and most comfortable shopping experience. ›› We installed technology in line with our commitment to energy efficiency. ›› We inaugurated a modern, closed-circuit security system.

2009 where we are in the region

c.03

2009 where we are in the region

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4,510 m2 GLA

2009 where we are in the region

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27,000 m2 GLA

ARAUCO EXPRESS PAJARITOS

ARAUCO SAN ANTONIO

A supermarket, bank and small stores forming part of the first stripcenter of Parque Arauco in Chile are now doing regular business.

Arauco San Antonio, a milestone of modernity for the city, will be completely operative by the second half of 2010. It has two anchor stores, a supermarket, casino, hotel and 75 smaller stores. ›› We invested US$50,000 million and we built a four-level mall. ›› We inaugurated a modern food court and children’s playground.

2009 where we are in the region

c.03

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parque arauco in peru 2009 was an excellent year for Parque Arauco in Peru: we consolidated our assets, significantly increased our number of properties and created an alliance with Maestro Home Center, a local chain, to begin to develop the third project of Parque Arauco in the country, in Arequipa.

MEGAPLAZA NORTE In 2009 we completed the second stage of the expansion of Megaplaza Norte, consisting of the construction of a second level to complement the commercial mix of the second most important mall in the country. ›› We invested US$8 million in enlarging the shopping center. ›› We added 2,574 m2 of GLA and 24 new stores to the commercial mix. ›› We made an important change in the corporate image.

Diversification towards new formats 34 millions

Development of strategic alliances

4,171 m2 GLA 76,317 m2 GLA

Acquisition of new properties to continue adding future developments

MEGA EXPRESS VILLA The second commercial project of Parque Arauco in Peru began operation in November, in answer to one of the company strategies: trying out new formats and diversifying the commercial offer. ›› We added a supermarket as an anchor store and 27 smaller retail operations. ›› We invested US$7 million in its construction.

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parque arauco in argentina

DOT BAIRES

APSA continued to grow and develop in a healthy market, gaining share in the industry and positioning the leadership of Alto Palermo S.A. (APSA) in this neighboring country.

17 years on the Argentine market and 11 shopping malls together with the IRSA Group Opening of the largest mall in Buenos Aires

92 millions

289,410 m2 GLA

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In May, we inaugurated Dot Baires Shopping, one of the most attractive developments in the industry in Argentina because of its size, architecture and commercial mix. The mall has 160 stores, three floors of covered parking, a food court that can serve 1400 people, restaurants, a children’s play area and movie theaters with a capacity for 2,300 spectators. ›› We invested US$140 million in building the mall. ›› It ranked third in sales after less than one year of operation. ›› We were awarded a gold medal in the New Project Category by the International Council of Shopping Centers, in recognition of Dot Baires Shopping.

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parque arauco in colombia 2009 marked our definitive entry to the Colombian market through the announcement of our arrival in Bogota. We progressed in the construction of the Pereira Mall, we signed a joint venture with Bancolombia, and we purchased land in the city of Barranquilla to develop the top mall in the Colombian Caribbean.

A country key to our expansion The inclusion of a new business model in the industry. Entry to the leading markets in Colombia. A strong investment plan for the next three years. Pioneers in introducing the store lease business model.

PARQUE LA COLINA AGREEMENT WITH BANCOLOMBIA

LAND IN BARRANQUILLA

In October 2009, we signed an important joint venture agreement with Banca de Inversión Bancolombia S.A. to implement commercial projects together that will contribute and set a new standard for the industry in that country.

This year we purchased land in the city of Barranquilla. Construction of the project is planned in 2011.

In December 2009, we announced the purchase of property in Bogota where we will build a shopping center starting at the end of 2010 that will begin operation in 2012. The project strengthens the position of Parque Arauco in Colombia by entering its most important market. ›› We will invest US$140 million in building the mall. ›› It will have leasable space totaling 67,000 m2.

›› We purchased 70,000 m2 of land. ›› The new mall will be our third project in Colombia.

›› We associated with the one of the largest financial entities in the country.

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2010 future challenges c.04 Our challenge is to resume the company’s growth strategy and continue our expansion based on operating excellence and our passion for our customers.

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2010 future challenges

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why? We see true signs of recovery after the crisis. Our results were excellent in recent years, in particular during 2009. This paves the way to the start of a new stage in the Company’s growth, which translates into:

US$1 billion The start of the second phase of a US$1 billion investment plan of which US$500 million have already been committed: We will resume projects in Chile, Peru and Colombia.

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CHILE

PERU

We want all our malls to grow and we want to continue to perfect infrastructure through better and more spaces for social interaction. This year we will resume important projects that total an aggregate investment of approximately US$100 million:

We want to become the leading independent mall operator in the country and to do so, we will continue to consolidate our vocation for growth. This year we will resume projects for an aggregate investment of US$63 million over the coming years.

›We › will conclude the third stage of the Arauco Maipu enlargement. ›We › will inaugurate a new fine restaurant area in Paseo Arauco Estación for an investment of US$6 million. ›We › will inaugurate anchor stores, a supermarket and hotel at Arauco San Antonio in complement to the existing supply in the zone. ›We › plan to open Paseo Marina Arauco in the Marina Arauco Mall in Viña del Mar, which will reinforce its position as the leading mall on the central coast. ›At › Parque Arauco, we will begin a significant modernization plan to continue making this mall the most emblematic and successful in the nation.

›We › will inaugurate the Parque Arequipa Mall in the fourth quarter of 2010 for an investment of US$48 million. It will be a prime mall for the city where the best national and international retailers do business, contained in a constructed area of 65,000 m2.

4 stores

Four anchor stores

3 stores

Three intermediate stores

70 stores

Seventy boutiques

Neo-arequipeña Neo-arequipan architecture and high international standards

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property bank

COLOMBIA

We hold a bank of strategic properties for future developments

Our challenge is to become a relevant operator in the industry. We have already announced investments in two large cities: Pereira and Bogota, and we will continue to study new developments. We plan to invest US$200 million over the coming years.

Arauco Premium Outlet 26,000 m2 | US$ 3,000,000

›We › will begin construction of our first mall in Bogota, which marks a major milestone in our arrival to the country because it is the most important market there:

Arauco Quilicura

98,000 m2

CHILE

72,000 m2 | US$ 3,000,000

US$140 million

67,000 m²

location

Total investment

Leasable area

Privileged within Bogota

Parque El Golf 14,000 m2 | US$ 9,000,000

La Unión 179,000 m2 | US$ 9,000,000

›We › plan to open mall Alameda Pereira, the first Parque Arauco Mall in Colombia:

Arequipa 40,000 m2 | US$ 6,000,000

289,000 m2

PERU

San Juan de Lurigancho

US$90 million

108,000 m²

40,000 m²

Total investment

Built

Leasable area

200

1,200

Stores

Parking places

75,000 m2 | US$ 3,000,000

Barranquilla 70,000 m2 | US$ 8,000,000

104,000 m2

COLOMBIA

Bogotá 34,000 m2 | US$ 33,000,000

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parque arauco more and better malls c.05 In recent years, we have studied and understood what the customers in our different malls are looking for. We are pioneers in new market trends, capable of adapting them to the diverse realities of our malls. Today, we have more and better malls and, of course, we shoulder the responsibility that they continue to be attractive to our shoppers over time.

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“I like to shop here because there is a wide variety of stores, it’s comfortable and easily accessible.”

our customers

Claudia Vásquez Parque Arauco Kennedy

“What I like most about the mall is the privileged view it offers of the port, the varied food court and the comfort of its parking.”

“I love to visit this mall because there is an ample play area where my children can play, I can buy in the large stores and it’s safe.”

Emilia Vallejos Arauco San Antonio

Lidia Mateluna Arauco Maipú

“I prefer to shop here because it’s easier since I can get here more quickly thanks to the connections to the subway and buses.” Ismael Riquelme Paseo Arauco Estación

“The mall has everything I need: a supermarket, department stores and a food court. My children also have a lot of fun visiting Happyland and they love to go to the movies.” Angélica Fuentes. Plaza El Roble

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WE WANT TO SURPRISE OUR CUSTOMERS ›We › have organized art and musical moments at our malls ›We › intend to understand and comprehend our customers thoroughly so as to anticipate and surprise them in their needs

WE DISPLAY THE LATEST TRENDS ›We › have the best and most varied brands in each of our malls ›We › hold fashion shows to display collections and coming trends ›We › have the best variety of cuisine on our boulevards

WE OFFER ENTERTAINMENT ›We › endeavor to make the entertainment experience innovative

WE PROVIDE COMFORT ›We › have added a wide variety of services to satisfy our customers’ needs

WE SHARE ART ›We › exhibit the latest in design and decoration ›We › complement our supply by expositions, art and music displays

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our commitment is to make our malls a place of encounter that gives preference to comfort, safety and, above all, a variety of products and entertainment. we want to create spaces where our customers live a unique buying experience in the midst of culture and entertainment.

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our people committed to excellence c.06 We have a great team. Through their competencies, we have addressed complex situations like the international financial crisis. We have become stronger, both as an organization and as individuals. We are a cohesive group committed to the work and capable of assuming great challenges.

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“The energy present today in the team is a characteristic not easily seen in other enterprises. We are young, responsible, committed, and we all demonstrate a great passion for our work” José Luis Fernández Management Control Engineer

“We prepared the ship to navigate during a storm. Tasks were distributed clearly among the crew, under the guidance of good captains and pilots who made the difference. The contingency plan created unity in the team, reinforced leadership and enabled us to keep our focus on the commitments and projects on which we were working”

“Today, we are clear about the role that each must play inside the company. Our work is recognized and we get feedback on how we are doing our job, which helps us improve each day”

ORGANIZATIONAL CLIMATE

5.32

Jaime Castro Assistant to the Vice President 2008

Johan Leighton Virtual Channel Administrator

5.79 2009

LOYALTY INDEX

5.54

2008

6.01 2009

* Grades on a scale of 1 to 7.

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PERFORMANCE MANAGEMENT MODEL:

CORPORATE AND DIVISIONAL MATRIX:

›› We implemented a model based on a Balanced Scorecard, individual performance goals and a competency evaluation ›› We aligned the entire team around a corporate strategy involving individual performance goals to be met annually

›› We designed and communicated a new corporate structure to manage the operations in countries. Guidelines were defined and the transfer of the best practices is managed ›› We optimized our way of working by facilitating quicker decision-making and a greater alignment of teams to the company’s strategy

ANNUAL ORGANIZATIONAL CLIMATE MEASUREMENT: ›› We conducted the second work climate study and developed a post-study action plan that had positive results for the organization ›› A group of individuals with management responsibilities participated in this plan and together defined concrete actions to improve the climate within the company ›› We improved our work climate by 10% compared to the study performed in 2008

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COLLABORATION We look for, and encourage, teamwork and value the proactive contribution of each to attaining common goals.

PROFESSIONALISM We work to do things well and on time.

INTEGRITY We are honest with ourselves and with others. We fulfill the commitments assumed and thus create confidence.

PASSION We feel profoundly enthusiastic about the work we do and we become involved beyond the roles and responsibilities that we each have. The company’s business matters to us as if it were our own because shareholders expect that and they have entrusted their equity to us.

We at Parque Arauco share values that we have defined as our own, that make us unique, that guide our daily actions and because of which we have remained the leader in our markets.

OPENNESS We are open to developing new ideas and ways of doing things. We conceive novel proposals attractive to our customers and retailers. We value diversity, we are open to others, we respect them and value their way of being and thinking.

SURPRISING THE CUSTOMER We try to understand and surprise our customers and other collaborators and go beyond their expectations.

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Charter Documents

P identification of the company Name | Parque Arauco S.A. Type of Company | Sociedad Anónima Abierta Stock Exchange Abbreviation | PARAUCO Registered Offices | Avenida Presidente Kennedy 5413, Las Condes, Santiago Address | Avenida Presidente Kennedy 5413, Las Condes, Santiago Phone Number | 56 2 - 299 0500 Fax Number | 56 2 - 211 4077 / 211 4131 Web Site | www.parauco.com Taxpayer Identification Number | 94.627.000-8 Duration | Indefinite Securities Registration Number | 0403

arque Arauco S.A. was incorporated by public deed dated November 30, 1979, executed in the Santiago Notarial Office of Andres Rubio Flores. It was modified by public deed dated February 23, 1981, executed in the same notarial office. It was granted authorization to do business and its bylaws were approved by Resolution 363-S of the Securities and Insurance Commission dated June 22, 1981. An abstract of the business authorization and bylaw approval was registered on page 11,408, number 6,348, of the 1981 Commercial Registry of the Santiago Real Estate Registrar. It was also published in Official Gazette No. 31003 on June 30, 1981. The bylaws were later amended many times, the most recent reforms being by public deeds dated: a) June 1, 1992, executed in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 20,648, number 10,800 of the 1992 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 34308 on July 6, 1992; b) July 20, 1992, executed in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 23,842, number 12,725 of the 1992 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 34333 on August 4, 1992; c) April 7, 1994, executed in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 8,260, number 6,805 of the 1994 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 34582 on April 29, 1994; d) October 21, 1994, ex-

ecuted in the Notarial Office of Andres Rubio Flores. An abstract was registered on page 25,747, number 20,928 of the 1994 Commercial Registry of the Santiago Real Estate Registrar and published in Official Gazette No. 35,024 on November 24, 1994; e) May 14, 1997, executed in the Notarial 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.

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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. 608,167,057 shares were subscribed and paid in as of December 31, 2009.

12 Majority shareholders Name Inversiones del Pacífico S.A.

Taxpayer ID 78.031.260-2

Shares 88,580,000

% 14.57

Inversiones Caburga S.A. Banchile Corredores de Bolsa S.A.

96.854.480-2

51,572,490

8.48

96.571.220-8

44,899,334

7.38

Sociedad Const. Jardines del Bosque Ltda.

88.036.500-2

17,569,334

2.89

Inversiones Gualdamina S.A.

96.532.940-4

17,530,000

2.88

Inversiones Ranco Uno S.A. Banco de Chile por Cuenta de Terceros N.A.

76.002.237-3 97.004.000-5

17,510,090 17,444,385

2.88 2.87

Inversiones Ranco Dos S.A.

76.002.243-8

15,888,850

2.61

Inversiones Ranco Tres S.A.

76.002.244-6

15,663,850

2.58

AFP Provida S.A.

98.000.400-7

15,367,619

2.51

Manufacturas Interamericanas S.A.

921.771.000-3

14,782,027

2.43

76.681.360-7

14,782,026

2.43

Inversiones las Nieves S.A.

SHAREHOLDINGS - DECEMBER 2009

4.29%

0.25%

Mutual funds

Insurance

7.3% Abumohor Family

23.05% Said Somavia Family

9.07%

Pension fund managers

10.51%

15.55%

Said Yarur

Other shareholders

13.13% Investment funds

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As of December 31, 2009, the controller of Parque Arauco S.A. was the group comprised of Inversiones Santa Berta Cinco S.A., Inversiones Guadalmina Cinco S.A., Inversiones Cabildo Tres S.A., Inversiones del Pacífico Dos S.A., Sociedad Constructora Jardines del Bosque Limitada, Inversiones Innova Limitada and Sociedad de Inversiones E.B. Limitada, as stipulated in a joint action agreement. The group covered by such agreement held 27.63% of all voting shares. After a reorganization that concluded in January 2010, those shares were transferred to Inmobiliaria Atlantis S.A. (Taxpayer ID 76.089.588-1), which holds an interest of 27.95% in all of the issued and voting shares in Parque Arauco S.A. The ultimate controllers of Inmobiliaria Atlantis S.A. are, together, José Said Saffie, taxpayer identification number 2.305.902-9, Isabel Somavia Dittborn, taxpayer identification number 3.211.015.5, Salvador Said Somavia, national identity card number 6.379.626-3, Isabel Said Somavia, national identity card number 6.379.627-1, Constanza Said Somavia, national identity card number 6.379.628-K, and Loreto Said Somavia, national identity card number 6.379.629-8. Below are the shareholders who owned 10% or more of the share capital in the company at December 31, 2009, either directly or through other natural persons or corporations: ›Mr. › José Joaquín Said Saffie TAXPAYER ID: 2.305.902-9 He holds an indirect interest of 23.53% in Parque Arauco S.A. through: Inversiones Caburga S.A. (TAXPAYER ID: 96.854.480-2) Inversiones Santa Berta S.A. (TAXPAYER ID:95.305.000-5) Inversiones Guadalmina S.A. (TAXPAYER ID: 96.532.940-4) Inversiones del Pacífico S.A. (TAXPAYER ID: 78.031.260-2) Inversiones y Asesorías Gran Andes Ltda (TAXPAYER ID: 78.265.960-K) ›The › Said Yarur Family It holds a direct and indirect 10.51% share of Parque Arauco S.A. through: Inversiones Ranco S.A. (TAXPAYER ID: 76.002.235-7) Inversiones Ranco Uno S.A. (TAXPAYER ID: 76.002.237-3) Inversiones Ranco Dos S.A. (TAXPAYER ID: 76.002.243-8) Inversiones Ranco Tres S.A. (TAXPAYER ID: 76.002.244-6) Inversiones Ranco Cuatro S.A. (TAXPAYER ID: 76.002.246-2) Sociedad Inversora Rautén Limitada (TAXPAYER ID: 77.092.640-8) He also holds shares individually or in the custody of stock brokers.

15.41% Stock brokers

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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 ID: 6.191.544-3 civil industrial engineer

Patricio Claro Grez TAXPAYER ID: 5.206.994-7

ORGANIZATIONAL STRUCTURE

business administrator

Rafael Aldunate Valdéz TAXPAYER ID: 5.193.449-0

Parque Arauco S.A. está estructurada bajo un esquema Corporativo y de Divisiones Operativas por País.

business administrator

The Audit Committee met January 29, February 26, March 26, April 30, May 28, June 25, July 30, September 24, October 26, November 19 and December 23. It engaged in analyzing the balance sheet and financial statements, reviewing the results of the Company’s internal audit plan and the reports by the external auditors and risk rating agencies. It also reviewed certain transactions indicated in the Companies Law and intercompany transactions. The Audit Committee had no operating expenses during the 2009 fiscal year except for members’ compensation.

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Board of Directors

Audit and Comptroller Division

Executive Vice Presidency

Corporate Finance Division

Commercial Development Division

Corporate People and Organization Division

Chile Division

Corporate Legal Division

Peru Division

Corporate Engineering and Projects Division

Colombia Division

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Banks

Suppliers

BBVA, B.I.C.E., Chile, Citibank, CorpBanca, B.C.I., Santander Santiago, Security, and BancoEstado in Chile, BCP in Peru, Bancolombia in Colombia.

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.

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

Properties

Equity Paid-in capital Capital revaluation reserve Premium on the sale of treasury stock Other reserves Retained earnings Fiscal year profit Total Equity

CH$000’s 152,644,344 -3,503,749 9,781,526 -17,181,714 81,682,588 29,253,239 252,676,234

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.

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. information on the company

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1. 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, which comprise the merged lot C-5A; and on page 1,700, number 1609 of the 1993 Property Registry, which corresponds to Lot C-6. 2. 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. 3. 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. 4. 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. 5. 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. 6. 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 Regisinformation on the company

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try 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. 7. 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. 8. The land located in the city of Barranquillla is property called El Genovés Global B, located in the municipality of Port Colombia, Department of the Atlantic, located between 46th street and Corredor University street (51B) K45 No. 51B. It has an area of fifty thousand m2 (50,000 m2) and is registered on Property Registry Page 040-422417 of the Barranquilla Public Instruments Records Office and cadastre No. 01-03-0030-0079-000. 9. The Megaplaza Norte Mall is located in Lima, in the district of Independencia. It is built on land that was part of the Mulería Ranch, called Sublot A, along Avenida Alfredo Mendiola 3698, Valle de la Piedra Liza, Independencia. Its total area and perimeter measurements are recorded in its registration in electronic item No. 12040239 of the Lima Real Estate Registry. 10. The Mega Express Villa Mall is located in Lima, in the District of Chorrillos. It is built on property measuring 10,230.48 m2. This land is located on South Alameda Avenue at the corner of San Marcos Avenue, Block II, Chorrillos, registered under Electronic Item No. 42027472 of the Lima Real Estate Registry. information on the company

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11. The Parque El Golf Mall will be built on land measuring approximately 14,200 m2. It is located in the district of San Isidro in the city of Lima. This land is comprised, in turn, of three properties. The first is located along Choquehuanca Street, Camino Real Avenue and Lizardo Alzamora Street, recorded on page 110 of Tome 1187, page 32 of Tome 1373, and Electric Item No. 11101473 of the Lima Land Registry. The second property is situated along Choquehuanca Street, Nos. 734, 738 and 740, registered under entry No. C00001 of Electric Item No. 07047059 of the Lima Land Registry. The third property is located on Lizardo Alzamora Street East, No. 470, and such property is registered under Entry 1 on page 339 and Entry 6 on page 341 of Tome 336, continued in Electronic Item No. 07025948 of the Lima Land Registry. 12. The land in the district of San Juan de Lurigancho in the Department of Lima is comprised of two properties, the first being vacant land comprised of sublot 1-D-A, located on the Pampas de Canto Grande Ranch. The perimetral measurements, description and ownership are registered in record No. 333957, continued in Electronic Item No. 43202936 of the Lima Real Estate Registry. The second property, rural property comprised of sublot 1-F located on the Pampas de Canto Grande Ranch, is registered, together with the boundaries, perimetral measures, description and ownership, in record No. 333959, continued in Electronic Item No. 43202952 of the Lima Real Estate Registry. A useful area of 78,458 m2 is estimated to remain after completing the urbanization and sanitation processes. The gross cumulative area of these properties is 111,900 m2. 13. A mixed project will be built on land measuring approximately 189,994 m2, located in

the district of El Agustino in the Department of Lima. It will be mixed mainly because of the great expanse of land. The project includes a mall, homes and a corporate storage complex. The land is comprised of 7 sublots, the first called Nueva Centuria, which formed part of the Puente or Cacahuasi Ranch at 2645 Nicolás Ayllón Avenue. It is registered under Electronic Item No. 46248023 of the property registry in the IX Register Zone-Lima branch; the second segment, called Lot A and Sublot A-B4, both along Nicolás Ayllón Avenue, are registered under items No. 07044349 and 1165588. The third segment, Lot B, is located at 2625-2681 Nicolás Ayllón Avenue and is registered under item 49019113 of the Real Estate Registry of the Lima Public Records Office. The fourth segment, Sublot B-1 of the Puente Ranch, is registered under item No. 44330512 of the Lima Public Records and the fifth, land at Km 2.8 (formerly km 6.3) of the main road, is registered under No. 44327686 of the Lima Public Records. The sixth is property registered under item 45180093 of the Lima Public Records; and lastly, a share of 37.712% in Sublot B-3, located at 2625 Nicolás Ayllón Avenued, registered under item 1165590 of the Real Estate Registry of the Lima Records Office.

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Equipment: main machinery and equipment owned by the company

Insurance

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:

Parque Arauco All-risk Terrorism Glass Civil Liability Employee Fidelity Personal Accident

Amount (Uf) 7,280,564 2,000,000 5,000 40,000 2,000 1,464,500

Paseo Arauco Estación - Plaza Estación Industrial/Property All-Risk Industrial/Property All-Risk Fire in Home Civil Liability Employee Fidelity Personal Accident

Amount (Uf) 709,997 253,966 19,500 30,000 1,000 976,720

Arauco Maipu All-risk Terrorism Glass Civil Liability Employee Fidelity Personal Accident

Amount (Uf) 3,208,841 2,000,000 2,000 30,000 1,000 1,171,600

Paseo Arauco Estación Inm. Paseo de la Estación Glass Fire in Home Terrorism Industrial/Property All-Risk

Amount (Uf) 2,000 1,300 1,000,000 721,545

Plaza El Roble Industrial/Property All-Risk Terrorism Glass Civil Liability Employee Fidelity Personal Accident

Amount (Uf) 1,206,256 2,000,000 2,000 30,000 1,000 1,074,160

Arauco San Antonio Industrial/Property All-Risk Terrorism Personal Accident Employee Fidelity Glass

Amount (Uf) 1,270,007 2,000,000 30,000 1,000 2,000

1. Potable water systems 2. Power systems 3. Wet standpipes 4. Climatization systems 5. Closed circuit television systems 6. Emergency generators 7. Audio systems 8. Internal communication systems 9. Smoke detection systems 10. Escalators 11. Elevators 12. Sprinkler systems 13. Sewage 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

CONTRACTS Company

Period

Asesorías e Inversiones Asconper LTDA.

5 years Interior and exterior security of Arauco malls

Type of Service

Granfer LTDA. 5 years Maintenance of Arauco malls Administradora de Servicios Integrales ASI RETAIL LTDA. 5 years Cleaning of Arauco malls Parking collection system at Parque Arauco Kennedy, El Roble and Paseo Arauco Estación

Central Parking Burson Marsteller SB & Partners Mindshare Digitaria S.A. Integra Servicios S.A. Quintec Aplicaciones de Negocios S.A. El Mercurio La Tercera IA

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Anual Anual Anual Anual Anual Anual Anual Anual Anual

Communications agency Creative agency Media agency Web site development and maintenance External HHRR Service SAP database and licenses Press Press Engineering and IT (web servers)

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Financial Activities

Stock Options

Risk Factors

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 and bonds where the company tries to match the debt servicing to cash flow. The main financial covenants are: Debt ratio: 1.4 Financial expense coverage ratio: above 2.25 for 2010, 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 once, through 2016, for no more than 9 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.

The company has set up an incentive system for its senior 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. Thus far 917,057 stock options have been exercised, corresponding to 11.83% of the entire Stock Option Plan.

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.

Research and Development

Dividends Paid per share in the last 7 years

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.

Dividend Nº

Date Paid

Pesos per Share in Currency in Each Date

For the Fiscal Year

13 14 15 16 17 18 19

08.05.03 05.05.04 09.05.05 08.05.06 08.05.07 06.05.08 12.05.09

10 5 9 10 10 9.5 9.5

2002 2003 2004 2005 2006 2007 2008

Investment and Finance Policies The company has an investment schedule. The policy aims at it remaining the leader in the sector and developing profitable projects that set us apart in different ways. It also aims at the development of 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 La política de dividendos consiste en distribuir a lo menos el 30% de las utilidades líquidas de cada ejercicio.

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PARQUE ARAUCO STAFF List of Senior Executives

Payments to Directors

Name Abarca Millán, Rodrigo Acuña Velasco, José Luis Aninat De La Maza, Augusto Aros Bovet, Fernando Azcona Virrueta, Francisco Bellolio Roth, Blas Benzaquen Grosz, Ariel Maximiliano Castro de Río, Felipe Fernández Lagos, Christian David Gamero Eguiluz, Alonso Guzmán Navarro, Marco Herrera Vásquez, Eduardo Ibarboure Bametche, María Solange Jijena Hilgers, Eileen Samantha Lozada Prevate, Karen Marchesse Busco, Dante Rafael Morales Badilla, José Ignacio Mujica Arriagada, Miguel Olivos Bambach, Juan Andrés Osorio Asenjo, María Francisca Otero Venegas, Mauricio Romero Restrepo, Juan Pablo Spoerer Hurtado, Juan Pablo Torrealba Ruiz-Tagle, Andrés

Parque Arauco S.A. General Summary of Payments to Directors in 2009

Taxpayer ID 9.375.887-0 12.039.425-6 10.552.618-0 10.452.834-1 6.289.488-1 12.404.377-8 17.948.149-9 13.434.482-2 12.377.610-0 10225780 (DNI) 10.415.404-2 07257688 (DNI) 6.521.170-k 12.583.943-6 10623776 (DNI) 9.862.956-4 13.333.365-7 10.795.415-5 7.013.115-3 10.776.747-9 79.944.603 (DNI) 79.778.451 (DNI) 10.877.023-6 7.622.704-7

Title CFO, Chile CFO, Peru Division Commercial Development Manager Engineering and Projects Manager, Chile Chile Division Manager Corporate Legal Officer Marketing & Customers officer Commercial Manager, Colombia Center Manager Project Manager, Peru Audit and Control Manager Peru Division Manager Corporate Persons & Organization Officer Center Manager Peru Commercial Manager Center Manager Center Manager Corporate Engineering and Projects Manager Executive Vice-President Center Manager Colombia Engineering and Projects Manager Colombia Division Manager Corporate CFO Chile Commercial Manager

Director Sr. José Said Saffie Sr. Guillermo Said Yarur Sr. Patricio Claro Grez Sr. Rodrigo Abumohor Carniglia Sr. Salvador Said Somavía Sr. Rafael Aldunate Valdés Sr. Raimundo Valenzuela Lang Sr. Thomas McDonald Sr. Timothy Purcell Sr. Orlando Sáenz Rojas Total

Taxpayer ID 2.305.902-9 6.191.544-3 5.206.994-7 6.978.209-4 6.379.626-3 5.193.449-0 7.836.580-3 28553698 (Pass) 14.577.313-K 3.599.669-9

Total (CH$000’S) 40,310 31,281 27,916 20,155 20,155 30,223 16,803 0 16,789 6,703 216,335

Allowance(Ch$000’S) Committee(Ch$000’S) 39,332 0 19,666 5,793 19,666 6,393 19,666 0 19,666 0 19,666 7,189 19,666 0 0 0 19,666 0 179,994 19,375

Total (CH$000’S) 39,332 25,459 26,059 19,666 19,666 26,855 19,666 0 19,666 196,369

General Summary of Payments to Directors in 2008 Director Sr. José Said Saffie Sr. Guillermo Said Yarur Sr. Patricio Claro Grez Sr. Rodrigo Abumohor Carniglia Sr. Salvador Said Somavía Sr. Rafael Aldunate Valdés Sr. Raimundo Valenzuela Lang Sr. Thomas McDonald Sr. Timothy Purcell Total

Taxpayer ID 2.305.902-9 6.191.544-3 5.206.994-7 6.978.209-4 6.379.626-3 5.193.449-0 7.836.580-3 28553698 (Pass) 14.577.313-K

Inmobiliaria Paseo de la Estación S.A. General Summary of Payments to Directors in 2009

NUMBER OF EMPLOYEES

Director Sr. Luis Matte Lira

Taxpayer ID 8.257.631-2

Parent 23

Subsidiaries 7

Total 30

Professionals and Technicians

59

6

65

General Summary of Payments to Directors in 2008

Workers

39

3

42

Total

121

16

137

Director Sr. Luis Matte Lira

Managers and Executives

Allowance(Ch$000’S) Committee(Ch$000’S) 40,310 0 20,155 11,126 18,479 9,437 20,155 0 20,155 0 20,155 10,068 16,803 0 0 0 16,789 0 6,703 0 179,703 30,632

Taxpayer ID 8.257.631-2

Allowance(Ch$000’S) Committee(Ch$000’S) 6,000 0

Total (CH$000’S) 6, 000

Allowance(Ch$000’S) Committee(Ch$000’S) 7,000 0

Total (CH$000’S) 7,000

Salaries of Senior Executives

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A total of CH$2.260 billion was paid to the senior executives in 2009 for salary. Approximately 8% corresponds to variable salary. This amount represents all salary earned. Severance indemnities totalling CH$392,466,974 were paid to senior executives and managers in the 2009 fiscal year.

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ORGANIZATION OF PARQUE ARAUCO S.A., SUBSIDIARIES AND AFFILIATES

99.996296%

Parque Arauco S.A. Inmobiliaria Mall Viña del Mar S.A.

33.3%

99.999999%

0.003704%

Sociedad de Inversiones Internacionales Parque Arauco 8.16997%

95% Comercial Arauco Ltda.

95%

99.999991%

Plaza El Roble S.A.

0.000009%

Constructora y Administradora Uno S.A.

5%

Parque Arauco Argentina S.A

Alto Palermo S.A. 19.511147% 99.941018%

Desarrollos Inmobiliarios San Antonio S.A.

Inmobiliaria Paseo de la Estación S.A.

51%

83%

99%

Inversiones Arauco Uno S.A.

99%

Inversiones Arauco Dos S.A.

0.058982% 1%

50%

1%

0.124329%

45%

Inmuebles Panamericana S.A.C.

Inversiones Bairiki S.A.C.

99.270315% 87.567085%

Administradora Panamericana S.A.C.

0.729685%

12.308586% 99.99% 0.147793% 0.295586%

0.147793%

Inversiones Arauco Alameda S.A.

22.794261%

30.526916%

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Parque El Golf S.A.C.

76.3992%

100%

Plaza Estación S.A.

Todo Arauco S.A

Inversiones Comerciales del Perú S.A.C.

Inversiones Internacionales Colombia S.A.

Sociedad de Inversiones y Gestión S.A.C.

Alameda Sur S.A.C.

50%

50%

95% Inversiones Colombianas Arauco Ltda. 5%

Inversiones Arauco Barranquilla S.A.

Parque Lambramani S.A.C.

99.8%

51%

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STOCK EXCHANGE INFORMATION

SUBSIDIARIES AND AFFILIATES

Parque Arauco Share Statistics No. of shares Amounts Traded traded (MMCH$)

Average Price (ch$)

1 quarter 2006

11.953.884

4,077

341.1

2 quarter 2006

36.477.538

12,728

348.9

3 quarter 2006

17.979.946

6,008

334.2

4 quarter 2006

35.539.742

13,545

381.1

1 quarter 2007

39.475.797

18,294

463.4

2 quarter 2007

44.993.764

26,893

597.7

3 quarter 2007

21.270.775

13,967

656.6

4 quarter 2007

46.017.517

27,994

608.3

1 quarter 2008

30.290.652

14,777

487.9

2 quarter 2008

53.793.332

28,780

535.0

3 quarter 2008

25.605.585

11,351

443.3

4 quarter 2008

106.374.370

37,952

356.8

1 quarter 2009

31.182.197

9,685

310.6

2 quarter 2009

30.242.500

13,524

447.2

3 quarter 2009

37.523.802

18,440

491.4

4 quarter 2009

46.139.172

25,367

549.8

Subsidiaries Comercial Arauco Ltda. Constructora y Administradora Uno S.A. Desarrollos Inmobiliarios San Antonio S.A. Inmobiliaria Paseo de la Estación S.A.

Equity (Ch$ miles)

Direct Interest (%)

Percentage of Assets (%)

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

95.000000

0.0003

Construction and lease of stores

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

99.999999

6.6443

Construction and lease of stores

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

51.000000

0.2130

Investment company

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

83.000000

6.4948

Business of

Board and Senior Management

1,494

Construction and lease of stores

36,070,948

2,267,775

42,480,985

Inversiones Parque Arauco Dos S.A.

36

Construction and lease of stores

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

99.000000

0.0000

Inversiones Parque Arauco Uno S.A.

1,443,044

Construction and lease of stores

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

99.000000

0.2632

20,915,133

Construction and lease of stores

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

99.999991

3.8526

Investment company

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

99.996296

18.1368

Organization of publicity events, promotions

Chairman: Andrés Olivos Bambach CEO: Francisco Azcona V.

99.990000

0.0047

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

27.681117

10.1197

Construction and lease of stores

Chairman: Carlos Enrique Madina Directors: Andrés Olivos Bambach, Lázaro Calderón Volochinsky CEO: Sergio Novoa Balmaceda Deputy CFO: Jaime Gonzalez Mallea

33.333333

2.9462

Plaza El Roble S.A. Sociedad de Inversiones Internacionales Parque Arauco S.A. Todo Arauco S.A.

98,466,030

25,338

Evolution of Parque Arauco Share in 2009 (Base 100) Alto Palermo S.A.

Parque Arauco IPSA Retail

198.468.705

200 186 149

30.12 .09

30.11.09

30.10.09

30.09.09

30.08.09

30.07.09

30.06.09

30.05.09

30.04.09

30.03.09

28.02.09

30.01.09

Inmobiliaria Mall Viña del Mar S.A. 30.12.08

92

47,983,366

%

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transacciones de acciones por parte de relacionadas No 1 2 3 4 5 1 1

Transaction Seller/Relationship Date day/mo./yr to the Company Banchile Corredores de 06/01/2009 Bolsa S.A. / None Banchile Corredores de 06/01/2009 Bolsa S.A. / None Banchile Corredores de 21/01/2009 Bolsa S.A. / None Banchile Corredores de 21/01/2009 Bolsa S.A. / None Banchile Corredores de 21/01/2009 Bolsa S.A. / None Larrain Vial S.A. Corredores 27/03/2009 de Bolsa / None Quinteros Anwandter 06/04/2009 Gonzalo Alejandro / Manager

1

03/06/2009 Parque Arauco S.A. / Issuer

2

04/06/2009

3

24/06/2009 Parque Arauco S.A. / Issuer

4 5

Guzman Honorato Felipe / Development Manager

Adriazola Martinez Carlos Raúl / Executive Inversiones y Asesorias 30/06/2009 Futuro Ltda. / Related to Manager 26/06/2009

Seller’s Buyer/Relationship to the Taxpayer Id Company 96.571.220-8 96.571.220-8 96.571.220-8 96.571.220-8 96.571.220-8 80.537.000-9 5.894.656-7

Guzman Honorato Felipe / Development Manager Banchile Corredores de Bolsa 10.655.726-8 S.A. / None Adriazola Martinez Carlos Raúl 94.627.000-8 / Executive Banchile Corredores de Bolsa 5.686.706-6 S.A. / None 77.824.070-K

07/07/2009 EI Fund II Chile LLC / None

59.124.410-8

2

07/07/2009 EI Fund II Chile LLC / None

59.124.410-8

3

07/07/2009 EI Fund II Chile LLC / None

59.124.410-8

4

07/07/2009 EI Fund II Chile LLC / None

59.124.410-8

5

07/07/2009

6 7 1

Banchile Corredores de Bolsa S.A. / None

Celfin Capital S.A. Corredores de Bolsa / None

94.627.000-8

1

Corp Capital Corredores de Bolsa S.A. / None Corp Capital Corredores de 07/07/2009 Bolsa S.A. / None Corp Capital Corredores de 07/07/2009 Bolsa S.A. / None Inv Eme y Eme Ltda. / 15/09/2009 Related to Manager

Inversiones del Pacífico S.A. / Related to Director Inversiones del Pacífico S.A. / Related to Director Inversiones del Pacífico S.A. / Related to Director Inversiones del Pacífico S.A. / Related to Director Inversiones del Pacífico S.A. / Related to Director Quinteros Anwandter Gonzalo Alejandro / Manager

96.665.450-3 96.665.450-3 96.665.450-3 76.198.360-1

Inversiones del Pacífico S.A. / Related to Director Inversiones Ranco Uno S.A. / Related Company Inversiones Ranco Dos S.A. / Related Company Inversiones Ranco Tres S.A. / Related Company Inversiones Ranco Uno S.A. / Related Company Inversiones Ranco Dos S.A. / Related Company Inversiones Ranco Tres S.A. / Related Company Valores Security S.A. Corredores de Bolsa / None Asesorías e Inversiones Escorpiones Ltda. / Majority Shareholder

1

09/10/2009

2

Gonzalo Quinteros Celfin Capital S.A. Corredores 23/10/2009 Anwandter Ltda. / Related to 76.233.330-9 de Bolsa / None Manager

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96.571.220-8

Banchile Corredores de Bolsa S.A. / None

Buyer’s Taxpayer Id

Shares Traded

Percentage of Series Capital Subscribed

78.031.260-2

23,773

Unique

78.031.260-2

1,227

78.031.260-2

Exchange Tx performed Closing on Exchange Price

Unit TX Price

TX Paid in cash

(% share in in Seller’s Capital)

(% share in Buyer’s Capital)

0.00391486

289

Yes

305

Si

6,28565632

3,05383302

Unique

0.00020206

287.99

Yes

305

Si

6,28545426

3,05403508

3,796

Unique

0.00062511

330

Yes

335

Si

6,28952063

3,05466019

78.031.260-2

10,000

Unique

0.00164677

350

Yes

335

Si

6,28787386

3,05630696

78.031.260-2

20,576

Unique

0.00338839

340

Yes

335

Si

6,28448547

3,05969535

5.894.656-7

450,000

Unique

0.07410457

295

Yes

320

Si

1,69295430

0,07410457

84.177.300-4

450,000

Unique

0.07410457

321

Yes

325

Si

0,00000000

0,28769979

10.655.726-8

169,491

Unique

0.02790345

399.4956

Yes

467,41

No

0,00000000

0,02790345

96.571.220-8

169,491

Unique

0.02790345

465

Yes

465

Si

0,00000000

6,32769619

5.686.706-6

26,720

Unique

0.00439874

398.76025

Yes

491

No

0,00000000

0,00439874

96.571.220-8

26,720

Unique

0.00439874

499.99

Yes

500

Si

0,00000000

6,56506902

96.571.220-8

316,842

Unique

0.05215968

498

Yes

495

Si

0,00000000

6,62035309

78.031.260-2 70,000,000

Unique

11.52365407

Yes

459.62

No

1,93513216

14,58236110

76.002.237-3

5,254,887

Unique

0.86507857

Yes

459.62

No

1,07005359

0,89306459

76.002.243-8

3,250,000

Unique

0.53502680

Yes

459.62

No

0,53502680

0,56301281

76.002.244-6

3,250,000

Unique

0.53502680

Yes

459.62

No

0,00000000

0,65520205

76.002.237-3

12,085,203

Unique

1.98950998

470

Yes

459.62

Si

6,15943458

2,88257457

76.002.243-8

12,468,850

Unique

2.05266734

470

Yes

459.62

Si

4,10676724

2,61568016

76.002.244-6

11,683,580

Unique

1.92343779

470

Yes

459.62

Si

2,18332945

2,57863984

96.515.580-5

291,290

Unique

0.04795322

515

Yes

510

Si

0,00000000

0,91031500

77.089.330-5

150,000

Unique

0.02469354

528.5

Yes

544.5

Si

7,10418671

0,09877418

84.177.300-4

380,417

Unique

0.06262563

562

Yes

560

Si

0,00000000

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SIGNATURE OF THE ANNUAL REPORT As provided in General Rule 30 of the Securities and Insurance Commission, the signatories below declare that they are liable for the veracity of the information in this report as of December 31, 2009.

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José Said Saffie

Salvador Said Somavía

Chairman

Director

Rodrigo Abumohor Carniglia

Timothy Purcell

Director

Director

Patricio Claro Grez

Rafael Aldunate Valdés

Director

Director

Guillermo Said Yarur

Raimundo Valenzuela Lang

Director

Director

Orlando Sáenz Rojas

Andrés Olivos Bambach

Director

Executive Vice-President

information on the company

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