2014 - Parque Arauco

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2014 - Parque Arauco
ANNUAL
REPORT
ARAUCO
QUILICURA
BECAME THE FIRST
CHILEAN SHOPPING
CENTER TO RECEIVE
LEED CERTIFICATION
The Green Building Certification Institute (GBCI)
granted LEED certification, Silver category, to Arauco
Quilicura, highlighting its sustainable design and
leadership in transforming the country’s construction
industry.
TABLE OF
CONTENTS
04.
2014
HIGHLIGHTS
Growth
Diversification
Financial solidification
Planting seeds for the future
Recognitions in 2014
10.
LETTER FROM
THE CHAIRMAN
34.
¿What do we do?
¿Where are we?
¿How do we do it?
42.
José Said Saffie
Chile
Peru
Colombia
12.
56.
CUSTOMER
EXPERIENCE
The mall is alive
20.
CORPORATE SOCIAL
RESPONSIBILITY
Team members
Community
Environment
Transparency
26.
CORPORATE
GOVERNANCE
Directors Committee
Ethics Committee
Corporate transparency
Board of Directors
Administration
OUR
BUSINESS
2014 MILESTONES
FUTURE
CHALLENGES
New developments
Land bank
62.
OTHER IMPORTANT
INFORMATION
Company information
HIGHLIGHTS
2014
06 2014 Highlights
5,1%
17,3%
Growth of GLA
Growth in Revenues
14,9%
15,9%
Growth in EBITDA
Growth of tenant
sales
01
05
New asset
in Peru
New assets
in Chile
15,3%
44,8%
of GLA in non-traditional
formats
of GLA outside
of Chile
GROWTH
In 2014, we recorded solid growth in operating
results, due to growth in gross leasable
area and the maturation of shopping centers
opened in recent years.
DIVERSIFICATION
One of the most important aspects of our
strategy is geographic diversification and
diversification of formats, which allows
us to take full advantage of investment
opportunities while minimizing risk exposure.
FINANCIAL
SOLIDIFICATION
2014 was a year of numerous financial
milestones, including the successful capital
raise, the syndicated loan to finance Parque
La Colina in Colombia, the two-level upgrade
in our local risk rating, and the public debt
offering in Chile.
PLANTING SEEDS
FOR THE FUTURE
With recently acquired land and projects
initiated in 2014, we are laying the
foundations for the future development of
our company.
2014 Highlights 07
GROWTH
• Our revenues increased 17.3%, to USD 221 • Due to the maturation of shopping centers
million.
opened in recent years, our consolidated
EBITDA rose more than GLA. Examples of
the maturation include the 89% increase
• Our EBITDA rose 14.9% to USD 150 million.
in Arauco Quilicura’s EBITDA in Chile, 84%
• Our Gross Leasable Area (GLA) increased by
growth in MegaPlaza Express Chincha’s
5.1%, to 728,500 m2.
EBITDA in Peru, and 77% growth in Parque
Caracolí’s EBITDA in Colombia, all of which
• We expanded Arauco Chillan in Chile, and
were inaugurated in 2013.
MegaPlaza Norte and InOutlet Faucett in Peru.
EBITDA
(MM$)
74,456
85,554
2013
2014
14.9%
growth
GLA
08 2014 Highlights
693,100 m2
728,500 m2
2013
2014
5.1%
growth
2009 TOTAL GLA
1.2% 1.3%
358,700
Regional Shopping
Center
Neighborhood
Shopping Center
2009
Outlet Malls and
Strip Centers
8.6%
2014 TOTAL GLA
728,500
%
6.7
.5%
97
2014 GLA %
22
.4%
BY FORMAT
%
2009
.6
%
.7
84
77
DIVERSIFICATION
9.8%
• We opened our first strip center in Peru:
Viamix Chorrillos.
• We inaugurated two outlet malls in Chile:
Arauco Premium Outlet San Pedro in the city
of Concepcion, and Arauco Premium Outlet
Curauma in Valparaiso.
2014 GLA %
• We expanded our portfolio of strip centers with
the opening of three new assets in Santiago:
Manuel Montt, Las Brujas and El Carmen de
Huechuraba.
BY COUNTRY
35.
0%
Chile
Perú
Colombia
.2%
55
2014 Highlights 09
FINANCIAL
SOLIDIFICATION
PLANTING SEEDS
FOR THE FUTURE
• We successfully completed a capital raise of • We began construction of Parque La Colina in
USD 182 million.
Bogota. It will be our biggest asset in Colombia
with 63,500 m2, and it will be inaugurated in
• We took out a syndicated loan for USD 165
early 2017.
million to finance Parque La Colina in Colombia.
• We have a USD 524 million investment plan
• Fitch Ratings upgraded our Company’s solvency
with developments scheduled through 2017.
rating from A to a AA-, while ICR and Feller
began rating Parque Arauco with a solvency • New projects will add 106,500 m2 of GLA in
the coming years, boosting our geographic
ratings of AA-.
diversification and diversification of formats.
• We issued public debt in Chile for USD 120
million, which allowed us to refinance debt • We have a land bank valued at USD 209
at better financial conditions and reduce the
million, at acquisition cost.
amount of secured debt.
2014 was a year characterized by solid
growth in our operating results, greater
geographic diversification and diversification
of formats, and financial solidification
of our company.
10 2014 Highlights
RECOGNITIONS IN 2014
We were recognized for our responsible
work and our commitment to the
customer through the following
national and international awards:
• The magazine LatinFinance named us the
“Best Managed Andean Corporate 2014,”
for our ambitious growth plan, solid financial
strategy, constant innovation and improvements
implemented in transparency.
• We were one of four brands in 2014 to be added
to the Branding Hall of Fame Chile, which brings
together the 40 most important brands in the
country. This recognition has become the top
award in branding for large brands. Parque
Arauco received the “Gran Marca Empresa”
(Big Brand Company) award.
• Arauco Quilicura became the first shopping
center in Chile to receive LEED certification,
awarded by the Green Building Certification
Institute (GBCI). With this certification, Arauco
Quilicura has become an example of sustainable
design by incorporating environmentally friendly
practices in its construction and operation.
2014 Highlights 11
JOSÉ SAID SAFFIE
Chairman of the board
Dear shareholders:
I am very proud to present to you our Company’s Annual Report and Financial
Statements for the 2014 fiscal year, providing a summary of the most important
aspects of Parque Arauco S.A.’s business activities.
The report highlights the company’s significant growth, despite a challenging year
in the economic and business environment. During the fiscal year, revenue was
up 17.3% to $125,886 million, and EBITDA increased by 14.9% to over $85,554
million. This significant rate of growth is explained by the maturity of our portfolio,
consisting of numerous shopping centers inaugurated in recent years, and by the
12 Letter from the Chairman
opening of new shopping centers this year. Highlights include the
inauguration of Arauco Premium Outlet San Pedro and Arauco
Premium Outlet Curauma in Chile, the renovation of Larcomar in
Peru, and expansions of Arauco Chillán in Chile and Megaplaza
Norte in Peru. At the close of 2014, our assets portfolio consisted
of twelve regional shopping centers, five neighborhood shopping
centers, four outlet malls and twelve strip centers in Chile, Peru
and Colombia.
These results were accompanied by a significant financial solidification
of our company. In the first quarter, we successfully completed a
capital increase of more than $100 billion, and can highlight the
high subscription percentage of more than 95% achieved during the
preferred stock option period. We also took out the first syndicated
loan for Parque Arauco in Colombia for more than COP 300 billion
to finance Parque La Colina in the city of Bogotá. In addition, we
issued a local bond for more than $70 billion, which allowed us to
refinance liabilities at better financial conditions and reduce the
amount of guaranteed debt by releasing the mortgages on Parque
Arauco Kennedy. Lastly, we achieved a two-level upgrade in the
company’s solvency rating, going from a rating of “A” to “AA-.”
At the end of 2014, we can say that the geographic diversification
and diversification of formats of Parque Arauco is a reality. At the
end of 2009, only 28% of the Company’s leasable area was outside
of Chile. Thanks to significant investments in Peru and Colombia,
at the close of 2014, 45% of the company’s leasable area was in
these two countries. In terms of formats, at the close of 2009,
only 2% of the Company’s leasable area was in formats other
than regional shopping centers. Thanks to significant investments
made in the neighborhood shopping center, outlet mall and strip
center formats, 15% of leasable surface is in these non-traditional
formats at the close of 2014.
For Parque Arauco, innovation is a fundamental element to differentiate
our management. This fiscal year we continued surprising our
customers by improving their shopping experience, bringing the
“Arauco Mapps” application to Peru and Colombia. This is the first
geolocalization mobile app for a shopping center in Latin America.
We also surprised customers by launching innovative commercial
concepts, such as the Ágora cultural center in Larcomar, which
includes the Íbero Bookshop, La Plaza Theater, and Café Arábica
coffee shop. Lastly, we remain the preferred shopping center
administrator for many international brands entering our region.
Examples include the opening of Aeropostale, Victoria’s Secret,
Vince Camuto and Café Paul in Parque Arauco Kennedy.
excellency, seeking professional merit and fair treatment that
supports the professional growth of our employees. We also
developed initiatives focused on improving the quality of life of our
employees and their work-life balance. For this and other initiatives,
in 2014 we were included for the first time in the large companies
category of the Great Place to Work ranking, listed as one of the
50 best companies to work for in Chile.
At Parque Arauco, we have an exhaustive corporate transparency
policy. We ensure that relevant information is easy to access and
has a suitable level of detail. Since 2013, we hold quarterly telephone
conferences reporting the results in English, and answering investors’
doubts. We have also intensified our communication with the
market by regularly attending conferences with investors in the
United States and Europe. Finally, we have considerably improved
the quality of information that we provide the market each month.
We achieved significant recognition this year. Arauco Quilicura Mall
became the first shopping center in Chile to receive LEED certification
(Leadership in Energy and Environmental Design), awarded by the
Green Building Certification Institute for incorporating sustainable
and environmentally friendly construction and operation processes.
In addition, we were one of four brands in 2014 to be added to the
Branding Hall of Fame Chile, which brings together the 40 most
important brands in Chile. Finally, the magazine LatinFinance
awarded us the “Best Managed Andean Corporate 2014,” for our
ambitious growth plan, solid financial strategy, constant innovation
and improvements implemented in transparency.
Looking forwards, we have a significant growth plan for the coming
years with total investments exceeding USD 500 million, mainly in
Peru and Colombia. Highlights in this growth plan are the Parque
La Colina project, with total investment of USD 289 million. It is
advancing in line with the budget and we expect it to become one
of the main shopping centers in Colombia. In addition, we have a
land bank valued at more than USD 200 million at acquisition cost,
which will be the base for future growth of our company.
I would hate to end this letter without thanking our entire
team for their commitment, our shareholders for their ongoing
support, our lessees for their business and growth, our
customers for choosing us, our providers for their efficiency,
and everyone involved with Parque Arauco in any way. I hope
that we can continue working together to offer the best of
ourselves to our customers.
Yours sincerely,
Our commitment is that Parque Arauco will be a great place to
work, with trust-based relations and strong values that inspire and
guide our employees. In particular, we are focused on promoting
José Said Saffie
Chairman of the Board
Letter from the Chairman 13
CUSTOMER
EXPERIENCE
In our company, innovation is reflected in initiatives
that allow us to anticipate the needs of our
customers and improve their shopping experience.
We surprise our customers by launching new
concepts for the industry and we use cutting-edge
technology to make their visits more comfortable.
14 Customer Experience
Customer Experience 15
INTEGRATED EXPERIENCE
Carolina visits www.revistadetalle.cl to see the latest
trends in fashion and where to find these trends at
Parque Arauco.
Revista Detalle is a new tool to communicate culture. It as an exploratory tool that enables our
with our customers and a platform for trends customers to discover where they can find the
and experiences that links our customers to the latest trends and experiences in Parque Arauco.
latest trends in fashion, design, gastronomy and
16 Customer Experience
SERVICES AND CONVENIENCE
Carolina visits Parque Arauco with her daughter and,
thanks to Arauco TAG technology, the parking barrier opens
automatically. When she decides to leave, Carolina won’t
have to queue to pay for parking.
Arauco Tag is a system that allows the Parque
Arauco parking barriers to open automatically
when they detect the Costanera Norte Tag,
recording the vehicle’s entry and exit time.
Costanera Norte calculates the amount to be
paid and includes it on a monthly invoice sent
to its customers.
To activate the service, our customers can go to
web.costaneranorte.cl/arauco-tag and sign an
authorization for Parque Arauco parking charges
to be included on the Costanera Norte invoice.
Customer Experience 17
INNOVATION
Carolina uses the Arauco Mapps mobile app to georeference the
parking spot where she parked her car. This way, Carolina and
her daughter won’t lose time looking for their car when they leave.
Also, Arauco Mapps gives them precise instructions to find the new
Victoria´s Secret they are looking for.
Arauco Mapps is the first indoor georeference
mobile app in a shopping center in Latin
America. With Arauco Mapps, our customers
can “pin” where they parked their car and find
it easily when they leave. Also, they can find
18 Customer Experience
whichever store or restaurant they want and
the application provides precise instructions
on how to arrive.
CUTTING-EDGE COMMERCIAL MIX
Carolina walks with her daughter towards the new Victoria´s
Secret store. But before they arrive, they find the first Forever
21 store in the country so they decide to go in.
There is a lot of interest from our tenants to be Examples of these in 2014 include the opening
a part of our shopping centers. In 2014, several of Aeropostale and Café Paul in Chile, and UGG
tenants chose to open their first store in the and Desigual in Peru.
country in a Parque Arauco shopping center.
Customer Experience 19
ENTERTAINMENT
Carolina and her daughter found what they were shopping
for and are now looking for some entertainment. They decide
to see a 4DX movie in the cinema.
The Parque Arauco shopping centers have a variety
of entertainment options for the community. In
large cities, our regional shopping centers have
various entertainment options such as cinemas,
theaters, bowling alleys and even ice-skating rinks.
In medium-sized cities, our shopping centers
20 Customer Experience
often have the only cinema or arcade for children
in the city. In 2014 in our Larcomar shopping
center in Lima we inaugurated a cultural section
with the largest bookstore in Peru.
GASTRONOMY
Carolina and her daughter have been out together all
afternoon. They decide to stay and eat at one of the excellent
restaurants in the gastronomic boulevard.
In 2003, we inaugurated the first gastronomic
boulevard in a Chilean shopping center. We
have successfully taken this concept outside the
country to places that were not used to having
restaurants in a shopping center. In 2014, we
improved the mix of the restaurant boulevard in
Arauco Maipu, Parque Arauco Kennedy, Larcomar,
Parque Lambramani and MegaPlaza Norte.
Customer Experience 21
CORPORATE
SOCIAL
RESPONSIBILITY
At Parque Arauco S.A., our Corporate Social
Responsibility (CSR) strategy is part of a crossorganizational policy of corporate transparency.
It has allowed us to create a workplace that
provides shared values for our employees,
customers, community and environment.
22 CSR
CSR 23
WE CARE ABOUT
THE COMMUNITIES
IN WHICH WE
ARE PRESENT:
WE RESPECT
THEIR VALUES,
WE CELEBRATE
THEIR LOCAL
TRADITIONS AND
WE INCLUDE
THEM IN OUR
DAILY ACTIVITIES.
24 CSR
Under the slogan “Contigo Somos Más”
(With You, We Are More), we aim to
transcend the distances, borders and
idiosyncrasies separating us. Independent
of the location or country, at Parque Arauco
we share a common culture.
TEAM MEMBERS
•There are two fundamental values at our
company: excellence and happiness. We
seek professional merit and fair treatment
In 2014, our company was recognized
that supports the professional growth of
by “Great Place to Work” as one of the
our employees. We also develop initiatives
50 best large companies to work for
focused on improving the quality of life of our
in Chile.
employees and their work-life balance.
• Great Place to Work recognizes work •We are convinced that a great place to work is
environments where people trust their
built through trust-based relations and strong
employers, feel proud of what they do, and
values that inspire and guide our employees.
enjoy working with others.
COMMUNITY
The International Council of Shopping
Centers awarded us a silver medal in the
category “Cause Related Marketing .”
• The International Council of Shopping Centers
• In Peru, we participated actively in the Crea+
program, in which our employees donated
school clothes and sponsored low-income
children.
• We carried out a strategic alliance with the
Patrulla Ecológica de Peru (Ecological Patrol)
association, which organized a marathon and
delivered 1,500 trees for those that finished
to be planted in the city of Arequipa.
delivered this award to the Parque Arboleda
Shopping center in Colombia for having planted
2,000 trees in Pereira in honor of the city’s • In Colombia, Parque Caracoli, Fundación
HOPE and Fundación Amigos de la Foscal
150th anniversary.
joined forces to fight illiteracy in children with
• In Chile, Parque Arauco Kennedy, Arauco
cancer and leukemia, donating a classroom
Quilicura, Arauco Maipu, Arauco San Antonio
with furniture, books and technology, and
and Arauco Chillan participated in the Correos
sponsoring these children. We also supported
the Asociación Cultural del Café (Coffee
de Chile campaign “Conquering hearts: sponsor
Culture Association) and its IWOKA Program
a letter,” helping more than 3,000 low-income
children receive a Christmas gift.
that encourages young people and children
to become social entrepreneurs and commit
• Throughout the year, we provided free
to their own development and community
development.
spaces in our shopping centers for non-profit
organizations to raise awareness and raise funds.
CSR 25
At Parque Arauco, we aim for energy efficiency
and the preservation of natural resources.
We promote the use of renewable construction
materials and we develop comprehensive plans to
treat non-organic waste, in line with sustainable
environmental regulations.
ENVIRONMENT
Arauco Quilicura became the first
shopping center in Chile to receive
LEED certification.
• The Green Building Certification Institute
awarded LEED Certification (Leadership in
Energy and Environmental Design), Silver
category, to Arauco Quilicura for having an
environmentally friendly design, construction
and operation.
TRANSPARENCY
Best 2014
Corporates
in the Capital Markets
Arauco Paseo Estación received the Energy
Efficiency Seal in 2014 from the Chilean
Agency of Energy Efficiency, for establishing an
efficient energy policy with specific initiatives,
goals and indicators.
• We continue measuring our carbon footprint, with
emphasis on developing efficient management
to control adverse emissions. In 2014, we
reduced the Company’s carbon footprint by
nearly 900 tons.
Inteligencia de Negocios and Universidad del
Desarrollo, Parque Arauco is one of the 40 most
transparent companies in Chile, particularly
standing out in terms of “Presentations and
Business” and “Investor Services”.
The magazine LatinFinance named
us: “Best Managed Andean Corporate
2014.” The publication particularly
highlighted improvements implemented • With regard to transparency, we have held
quarterly telephone conference calls since
in transparency.
• In 2012, the company began a program to
comply with Law 20,393. On August 12,
2014, we received certification from the
firm BH Compliance accrediting that Parque
Arauco has complied with its supervision
and management duties by adopting and
implementing a crime prevention model,
providing evidence of compliance with the
Superintendency of Securities and Insurance,
Shareholders and the Public Prosecutor.
• According to the corporate transparency
ranking developed in 2014 by the organization
Chile Transparente, the consultancy
26 CSR
• Arauco Premium Outlet Buenaventura and
2013 to report company results in English and
answer investor questions. We also began
publishing all company reports in English,
including the Annual Report. Furthermore,
we have intensified our communication with
the market by regularly attending conferences
with investors. Finally, we have considerably
improved the quality of information that we
provide the market each month. An example
of this is the “Análisis Razonado” (Reasoned
Analysis) that we publish quarterly in the
Superintendency of Securities and Insurance,
showing sales, revenue, EBITDA and occupancy
in each of our shopping centers in Chile, Peru
and Colombia.
We ensure that relevant information is easy
to access and has an appropriate level
of detail regarding the company and its
businesses, corporate governance
policies, financial information, investor
services and sustainability.
CSR 27
CORPORATE
GOVERNANCE
Parque Arauco S.A. stands out for its quest for
transparency and promotion of good practices
within the company. Responsibility and
excellence in our processes and activities drive
and inspire our day-to-day operations.
28 Corporate Governance
Corporate Governance 29
WE ARE
KNOWN FOR
INCORPORATING
THE CONCEPT OF
EXCELLENCE IN
OUR WAY OF DOING
BUSINESS, WITH
PROFESSIONALISM,
INTEGRITY AND
CORPORATE
RESPONSIBILITY.
30 Corporate Governance
In Parque Arauco S.A. we have structured
our corporate governance with loyalty
to the values and ethical principles that
have differentiated us from the beginning,
guaranteeing self-regulatory mechanisms,
transparency and honesty.
DIRECTORS
COMMITTEE
ETHICS
COMMITTEE
CORPORATE
TRANSPARENCY
The Directors Committee is comprised
of three members, two of whom must
be independent of the controlling
shareholder. Its main responsibilities
include:
As an advisory body, the Ethics
Committee sets out procedures to
address ethical dilemmas that may
arise between customers or employees,
both internal and external, and Parque
Arauco S.A. Its main responsibilities
include:
Throughout the history of Parque Arauco
S.A., we have shown our commitment to
sending relevant company information
in a timely and transparent manner to
the market, to all our stakeholders and
to the general public.
•Review the Company’s balance sheets and
We are convinced that timely, precise
and detailed presentation of all
who interact directly or indirectly with Parque aspects of our business contributes to
• Propose external auditors and private risk rating
Arauco S.A.
responsible and modern governance
agencies to the Board.
in line with the ethical principles
•Participate in employee ethics training.
that guide our company.
•Review background information related to
financial statements.
•Ensure respect for the dignity of the people
operations.
•Advise on the decision-making process in
situations that pose ethical conflicts.
•Monitor remuneration and compensation
plans for principal executives and managers. • Propose protocols and guidelines for behavior
in situations that raise ethical conflicts.
• Handle additional tasks set forth in the company
bylaws or those requested during a Shareholders •Impose sanctions when necessary.
Meeting or Board of Director´s Meeting, as
needed.
•Inform employees when Company shares can
be purchased and sold.
• In 2012, the company began a program to
comply with Law 20,393. On August 12, 2014,
we received certification from the firm BH
Compliance accrediting that Parque Arauco has
complied with its supervision and management
duties by adopting and implementing a
crime prevention model, providing evidence
of compliance with the Superintendency of
Securities and Insurance, the shareholders and
the Public Prosecutor.
Corporate Governance 31
BOARD OF
DIRECTORS
JOSÉ SAID
SAFFIE
Chairman
RUT: 2.305.902-9
SALVADOR SAID
SOMAVÍA
Director
RUT: 6.379.626-3
ORLANDO SÁENZ
ROJAS
Director
RUT: 3.599.669-9
JOSÉ DOMINGO
ELUCHANS URENDA
Director
RUT: 6.474.632-4
32 Corporate Governance
A professional Board of Directors, with a
relevant business trajectory and long-term
vision leads Parque Arauco S.A., with
the mission to continually improve our
customers’ shopping experience.
Law degree, Universidad de Chile. Currently holds the
positions of Chairman of Banco Bilbao Vizcaya Argentaria,
Chile; Chairman of Parque Arauco S.A.; Director of Universidad
Jesuita Alberto Hurtado; Chairman of Fundación Palestina
Belén 2000-Chile, Director of the Chile-Peru Business
Council, Director of MegaPlaza – Sociedad de Centros
Comerciales en Perú, Managing Director of Asociación de
Bancos e Instituciones Financieras A.G.
Business Administration degree, Universidad Gabriela Mistral
de Chile. Executive Director of Grupo Said. Director of Cruz
Blanca Salud S.A. and Endeavor Chile. Director of BBVA,
Chile, Parque Arauco S.A., Edelpa S.A., Coca-Cola Andina
S.A., Envases CMF S.A. Consultant for Centro de Estudios
Públicos (CEP) and Generación Empresarial.
Civil Engineering degree, Universidad Católica de Chile.
Chairman of Constructora Jardines del Bosque Ltda., O. Sáenz
y Compañía Profesionales Asociados, Inversiones Orli Ltda.,
and Inversiones CAF Ltda.
Law degree, Pontificia Universidad Católica de Chile. Director
of the publicly traded companies Parque Arauco S.A., Banco
BBVA and Envases del Pacífico S.A.; Chairman of the Board
at Inversiones del Pacífico S.A., and Director of Inmobiliaria
Atlantis S.A., Parque Arauco´s controlling shareholder.
ROSANNA GAIO
CUEVAS
Director
RUT: 6.934.528-K
RAFAEL ALDUNATE
VALDÉS
Director
RUT: 5.193.449-0
JOAQUÍN BRAHM
BARRIL
Director
RUT: 7.052.386-8
RENÉ ABUMOHOR
TOUMA
Director
RUT: 3.065.693-8
GUILLERMO SAID
YARUR
Director
RUT: 6.191.544-3
Accounting degree, Escuela de Contadores Auditores de
Santiago. Completed Corporate Governance course at Pontificia
Universidad Católica de Chile and Board of Women course,
presented by Ernst & Young and Universidad Diego Portales.
Director of Industrias Combinadas Gaio, Peirano S.A. and,
since 2013, Director of Parque Arauco S.A.
Business Administration degree, Universidad Católica; Harvard
University: Advanced Management Program. Current Director
of Parque Arauco S.A., AFC: Administradora de Fondos de
Cesantía and Instituto Libertad. Chairman of Proservice. Former
Vice Chairman of Empresa de Ferrocarriles del Estado (EFE),
and former Director of SEP: Sistema de Empresas Públicas.
Business Administration degree, Universidad Católica de Chile.
Former CEO of Club Hípico de Santiago, S.A. and Inmobiliaria
Manquehue. Current Director of Parque Arauco S.A., CEO of
Inmobiliaria y Constructora Lo Campino, Chairman of the Board
of Inmobiliaria Valle Grande S.A, and Director of Inmobiliaria
Agsa and GPS Property.
Entreprenuer; has served as Chairman of Hilanderías Maisa
S.A., Coresa S.A., Contenedores, Redes y Envases; Managing
Director at Banco Interbank, in Lima, Peru, Banco CorpbancaVenezuela, Corpvida S.A., Compañía de Seguros, Parque
Arauco S.A. and various companies in Chile and abroad.
Currently holds the positions of Chairman of Empresas Coval
a company focued on finance and real estate, and Director
of Fundación Palestina Belén 2000-Chile.
Degree in Civil and Industrial Engineering, Universidad de Chile.
Post-graduate degree in Finance, Universidad Adolfo Ibáñez.
Chairman of Inversiones Ranco Uno S.A., Director of Parque
Arauco S.A. and Inmobiliaria Sport Francais S.A., Director and
CEO of Comercial Café Mokka S.A.
Corporate Governance 33
ADMINISTRATION
JUAN ANTONIO
ÁLVAREZ
Executive Vice President
RUT: 7.033.770-3
CLAUDIO CHAMORRO
Chief Financial Officer
RUT: 10.585.375-0
CONSUELO RABY
Corporate Legal
Affairs Manager
RUT: 11.703.205-1
MARCO HENRÍQUEZ
Accounting and
Auditing Manager
RUT: 9.401.560-K
34 Corporate Governance
Law, Universidad de Chile; MBA Pontificia Universidad Católica
de Chile; Chairman of the Board of Directors of Quemchi S.A.
and Navarino S.A.; Director of Compañía Electrometalúrgica
S.A., Cristalerías de Chile S.A., Compañía Sud Americana de
Vapores S.A., SM SAAM S.A. and Marítima de Inversiones S.A.;
Member of the Advisory Board at Generación Empresarial.
Business Administration degree, Pontificia Universidad
Católica de Chile. MBA, University of California (UCLA).
Former Director of Financial Research and Analysis at
Superintendencia de Bancos e Instituciones Financieras.
Market Risk Manager and later CFO of Corpbanca. Corporate
Development Manager of Holding Corpgroup, overseeing
acquisitions of hotels, shopping centers and banks as
well as the issuance of bonds and bank debt. Director of
Corpbanca Venezuela and Combanc. Has also worked as
an advisor to the Ministry of Planning (now the Ministry of
Social Development), while also lecturing at the Pontificia
Universidad Católica de Chile in different areas of Economics.
Law degree, Pontificia Universidad Católica de Chile. Master´s
in Law (LLM), Duke University. Her experience includes
areas related to corporate and commercial law, mergers and
acquisitions, capital markets and financing. She worked for
15 years at the law firm Carey y Cía., first as an associate
and later as director, being involved in and leading multiple
major projects in her areas of expertise. Third in the ranking
Leading Lawyers Chile 2013 - Business Category (Qué Pasa
magazine, November 2013). Second in the ranking Leading
Lawyers Chile 2014 - Business Category (Qué Pasa magazine,
November 2014).
Accounting Degree, Universidad Tecnológica Metropolitana
specializing in Computational Auditing from the Universidad
de Chile and certification in operating risks, with 26 years
experience in auditing and consultancy. He has worked in the
top auditing and consultancy firms, holding leading positions
at PricewaterhouseCoopers (PwC), KPMG and Deloitte, and
has developed projects in various business sectors such as
banking, insurance, retail, mining and health. He directed and
managed a number of national and international projects
on subjects related to practices in financial, operations and
technological internal controls, as well as risk management,
the Sarbanes-Oxley Act, money laundering and fraud.
The challenges we meet on a daily basis are addressed
by a team of highly trained professionals who bring
together a wealth of experience and professionalism.
CAROLINA GALLETTI
VERNAZZANI
Corporate Human
Resources Manager
RUT: 10.036.478-6
ANDRÉS TORREALBA
Chief Executive Officer,
Chile Division
RUT: 7.622.704-7
EDUARDO HERRERA
Chief Executive Officer,
Peru Division
DNI: 07257688
JUAN PABLO
ROMERO
Chief Executive Officer,
Colombia Division
DNI: 79.778.451
Business Administration degree, Universidad de Concepción.
Worked for 12 years in Human Resources at national and
multinational companies in Chile and Spain, managing projects
and leading processes for human capital management. Prior
to joining Parque Arauco, she worked as Human Resource
Manager for Pilkington Valencia, Spain.
Business Administration degree and MBA from Pontificia
Universidad Católica de Chile. He has 20 years of professional
experience, holding positions in various areas of business
such as sales, marketing and general administration, mainly
in the retail and real estate sectors. His previous experience
includes working for multinational corporations, local
companies and his own ventures. His professional experience
includes two years residence in Brazil. Torrealba joined
Parque Arauco in 2004, first as Marketing Manager and
then as Commercial Manager.
Industrial Engineering degree, Pontifica Universidad Católica
de Perú and Master’s in Sciences with a major in Finance,
London Business School (UK). He has over 20 years of
corporate experience, having worked for such institutions as
HSBC Bank, N.M. Rothschild & Sons and Banco Continental
BBVA, all of which handle asset and investment management,
including the Central Management of Investments for
Profuturo AFP, part of Citibank’s pension fund. He has led
the Peru division since 2008.
Business Administration Degree, School of Global Management,
CESA. MBA from Thunderbird University, Phoenix, Arizona. He
has more than 10 years experience working in Latin America
at multinational corporations in business development,
expansion and management. He began his career at the
German company BASF, working in Germany, Brazil and
Colombia. In 2003, he joined the airline Avianca S.A., where
he managed the financial reorganization and successful sale
of the company, and the purchase of Tampa cargo line. He
joined Parque Arauco S.A. in 2008 with the opening of the
company´s office in Colombia as Chief Executive Officer
of the division.
Corporate Governance 35
OUR
BUSINESS
Our company has a differentiated business
model—it is the only shopping center
operator open to the stock market in the
Andean region with an exclusive focus on the
real estate business.
36 Our Business
Our Business 37
WE ARE A
DEVELOPER
AND OPERATOR
OF MULTIFORMAT REAL
ESTATE ASSETS,
PRESENT
ACROSS THREE
COUNTRIES
WITH A HIGH
GROWTH
POTENTIAL
38 Our Business
WE REACHED CONSOLIDATED
REVENUES OF
MM$ 125,886
IN 2014
PARQUE ARAUCO´S NET
INCOME WAS
MM$ 60,793
IN 2014
WE HAVE
728,500 M2
OF GLA IN CHILE, PERU
AND COLOMBIA
WE OPERATE
33
¿WHAT DO WE DO?
SHOPPING
CENTERS
We develop and manage multi-format real estate
assets, mainly for commercial use, orientated
towards differentiated socio-economic sectors in
Chile, Peru and Colombia. We operate a portfolio
of 33 shopping centers with a combined GLA
of 728,500 m2.
We own and operate four shopping center
formats: regional, neighborhood, outlet malls
and strip centers. Our tenants are department
stores, home improvement stores, supermarkets,
restaurants, cinemas, health centers and smaller
stores offering various types of products.
FORMAT CHILE
PERU
COLOMBIA
TOTAL ASSETS BY
FORMAT
TOTAL GLA BY
FORMAT (M2)
Regional Shopping
Centers
6
4
2
12
617,000
Neighborhood Shopping
Centers
-
5
-
5
49,000
Strip Centers
11
1
-
12
22,500
Outlet Malls
3
1
-
4
40,000
Total Assets by Country
20
11
2
TOTAL GLA BY
COUNTRY (M2)
402,000
255,000
71,500
COMPANY
ASSETS BY
COUNTRY AND
FORMAT
728,500
Our Business 39
¿WHERE
ARE WE?
CHILE
402,000 m GLA
2
7%
9%
5%
Growth of GLA
2013-2014
Growth in Revenues
2013-2014
Growth in EBITDA
2013-2014
40 Our Business
We seek out the best locations and develop
tailor-made business concepts, creating
unique customer experiences that boost our
operators’ sales and achieve exceptional
long-term results.
COLOMBIA
71,500 m2 GLA
0%
35%
26%
Growth of GLA
2013-2014
Growth in Revenues Growth in EBITDA
2013-2014
2013-2014
PERU
255,000 m2 GLA
4%
39%
51%
Growth of GLA
2013-2014
Growth in Revenues Growth in EBITDA
2013-2014
2013-2014
Our Business 41
¿HOW DO
WE DO IT?
We study the cities in the countries where we
are present and we seek out the best locations
in each city. Once the location has been chosen,
we develop tailor-made business concepts
that are the right size and have the appropriate
infrastructure and the best commercial mix. Lastly,
when the shopping center is built and leased to
our tenants we continually strive to improve the
shopping experience for our customers.
We have a stable and diverse revenue base. The
stability of our revenues, 84% of which come
from fixed contracts, is based on long term
contracts. We maintain a high occupancy rate
in the assets we manage. In fact, we have have
an occupancy rate of 95.0% in Chile, 94.6% in
Peru and 90.0% in Colombia.
We have an experienced team of professionals,
commited to our shareholders and lenders, with
strong relationships with the retailers and the
appreciation of our customers.
When developing a project, we fully
assess the needs of the community.
Each shopping center is different
in terms of size, infrastructure and
commercial mix, depending on the
needs of our customers.
42 Our Business
“Tiffany is always searching for opportunities to create
memorable moments for our clients. Parque Arauco with
an open air area, beautiful views of the Chilean mountains
and a dedication to customer service, is one of the best
places in Latin America to create those experiences.”
LUCIANO RODEMBUSCH
VICE PRESIDENT LATIN AMERICA, TIFFANY & CO.
“We work with Parque Arauco because of their highquality assets in Lima. Larcomar was the perfect
place for our group of brands.”
MARCELO HARISTOY
CEO, KOMAX PERÚ
Our Business 43
2014
MILESTONES
2014 was an important year in terms of
diversification, maturation of assets and
consolidation. We expanded our participation in
the outlet mall format in Chile, we opened our first
strip center in Peru, and we began construction of
our third property in Colombia in the city of Bogota.
Additionally, Arauco Quilicura became the first
shopping center in Chile to receive
LEED certification.
44 2014 Milestones
2014 Milestones 45
CHILE
46 2014 Milestones
DIVERSIFICATION
In 2014 we continued growing and solidifying our strategy of
diversification both geographically and in terms of formats
by opening two outlet malls in the cities of Concepcion
and Curauma, and three new strip centers in Santiago. The
percentage of GLA in Chile from non-traditional formats rose
from 8.6% to 12.7% this year.
2014 Milestones 47
ARAUCO
KENNEDY
115,000 m2
Parque Arauco Kennedy - the first shopping
center inaugurated in Chile – remains our
most important asset in terms of revenues and
EBITDA. It remains a leader in the shopping
center industry in Chile in terms of innovation
and cutting–edge practices.
In 2013 we inaugurated the first Luxury District
in Chile and due to its excellent results during
its first year of operation we have begun the
expansion of the district by over 1,000 m2 in
order to add six premium brands, including expansion complete, we began the renovation
of the old food court, which will be converted
Tiffany & Co., the first to open in Chile.
to incorporate new entertainment options and
Parque Arauco Kennedy maintains its position as retail brands.
the preferred shopping center for the entrance
of new international brands into the Chilean
market. This was seen in 2014 with the opening
of Aeropostale, Etiqueta Negra, Victoria´s Secret
construction process and operations. These
(Beauty & Accessories), Versace Collection, Vince
results were achieved by working alongside
Camuto, October, Free People and Café Paul.
2
our tenants, who made important adaptions
to their stores to improve the sustainability of
With a new and modern online format and
their retail space.
renewed content, we have re-launched Revista
Detalle http://www.revistadetalle.cl./, a blog In Arauco San Antonio we inaugurated the first
showcasing the latest trends, fashion, technology, 4 star hotel in the city. Operated by Sonesta, Arauco Quilicura continued improving its
beauty, art and gastronomy, serving as an the hotel has a modern infrastructure and commercial mix with the inauguration of the
alternative way to enhance our customers´ cutting edge design and includes conference medical center Clinica Megasalud, adding health
rooms and a restaurant. The addition of new and dental care services for the residents of
experience.
international brands and new restaurants in the Quilicura. Additional we inaugurated a gym,
food court contributed to the ongoing efforts to the first 4DX movie theater in the northern
improve the mall.
sector of Santiago, new banks, restaurants and
smaller stores.
ARAUCO
SAN ANTONIO
28,500 m
ARAUCO MAIPÚ
75,000 m2
ARAUCO
ESTACIÓN
OUTLET MALLS
Located in the second largest and one of the
fastest growing sectors of Santiago, Arauco Maipu
2
continued to solidify its link with the community,
by continuing to improve the new gastronomic
boulevard where we hosted various free concerts In 2014 we opened a variety of stores, including
a branch of the Chilean National Treasury
and public events during the year.
Department, offering a valuable new service
In 2014 we built a walkway that connects the to our customers. We remodeled the cinema to
metro station with our shopping center thereby include 4DX technology and we are continuing
improving the accessibility of the mall for those the process of remodeling and modernizing the
commercial space overall as well as one of the
visitors arriving by public transportation.
food courts. The mall is also modernizing its
signage to help customers navigate the large
mall which surrounds Santiago´s main train
and bus station.
69,000 m
ARAUCO
CHILLÁN
31,500 m
2
During 2014, the preferred mall in the Ñuble
province officially changed its name to Arauco
Chillan, and the mall has adopted Parque Arauco´s
corporate logo. Additionally the 6,500 m2
expansion of the mall was completed during the
first half of the year. This expansion added the
department store Hites as an anchor store as
well as more than 40 new stores, restaurants, a
new food court and new movie theaters. With the
48 2014 Milestones
PARQUE ARAUCO
QUILICURA
32,000 m
2
2014 was a great year for Arauco Quilicura
which experienced strong operational growth.
Inaugurated in 2013, this year Arauco Quilicura
became the first mall in Chile to obtain LEED
certification, thanks to its sustainable design,
32,500 m2
2014 was a year of intense growth in Parque
Arauco´s outlet mall format, reinforcing our
strategy of diversification of formats. We
inaugurated Arauco Premium Outlet San Pedro
in Concepcion during the second quarter of the
year with 6,500 m2 of GLA and Arauco Premium
Outlet Curauma in Valparaiso in December with
7,000 m2 of GLA. Both outlets offer a variety
of premium brand stores. Additionally during
2014 we expanded Arauco Premium Outlet
Buenaventura in Santiago.
ARAUCO EXPRESS
(STRIPCENTERS)
18,500 m2
During 2014 we added three strip centers to
our portfolio. Manuel Montt, Las Brujas and
El Carmen de Huechuraba opened in different
sectors of Santiago adding more than 6,000
m2 of GLA and contributing to our strategy of
diversification of formats.
“We like the mall because it is
open air, it’s not closed in like
other malls. It’s nice because
there are green areas and not
as much concrete.”
MARCO RAMÍREZ AND
LISSETTE ZAMORA
ARAUCO QUILICURA
“I prefer Arauco Chillan for its
stores, both large and small,
for its food court and because
I’m looking forward to the new
cinema that will arrive soon.
All of this together makes the
mall the most entertaining
place in the city.”
PAMELA POBLETE
ARAUCO CHILLÁN
2014 Milestones 49
PERU
50 2014 Milestones
MATURATION
We strengthened our commercial offering in Peru with new
services, entertainment options, and international brands
arriving in the country in Parque Arauco´s shopping centers.
We completed the transformation of Larcomar and continued
expanding MegaPlaza Norte. We diversified formats with the
opening of our first strip center, Viamix Chorillos, and the
expansion of InOutlet Faucett.
2014 Milestones 51
MEGAPLAZA NORTE
110,500 m2
We entered the Peruvian market in 2006 with
the purchase of 45% of MegaPlaza Norte. Since
then, we have been gradually expanding this
shopping center. In 2014, in MegaPlaza Norte
we inaugurated the medical center Clinica
Integramedica, which has four floors and 4,000
m2 offering a variety of medical services to the
residents of the northern sector of Lima. We
also incorporated several new stores, which has
been well received by customers.
LARCOMAR
26,000 m2
During the year we incorporated new stores in
order to improve the mall´s commercial mix,
including the opening of Desigual and UGG,
the first of each of the stores in Peru. With the
goal of improving the customer experience, we
launched Larcomaps, a mobile application that
guides visitors through the mall to easily find
the restaurant or store they are looking for. We
also launched the cultural space Agora, which
includes the book store Librería Ibero, La Plaza
Theater, Dédalo, Café Arábica, and a store
dedicated to decoration and arts and crafts.
MEGAPLAZA
CHIMBOTE
28,000 m2
The mall is the first in Chimbote and has
transformed the commercial offering of the
city by offering the best brands for products,
services and entertainment.
MEGAPLAZA
NEIGHBORHOOD
CENTER FORMAT
Finally during 2014 we made efforts to position
Larcomar as the premium mall in the city by
2
improving the offering in the gastronomic
boulevard by adding new restaurants and by
inaugurating a VIP parking area and Valet We continue strengthening the commercial
Parking service.
mix of our neighborhood shopping centers,
highlighting the opening of Movie Time cinemas
in Barranca and Cañete.
49,000 m
PARQUE
LAMBRAMANI
30,000 m2
During the year we continued improving the
commercial mix of the mall adding new stores
and a special entertainment area for children
and teenagers. The accessibility to the shopping
center was also a focus of improvement, and this
year we renovated the main access of the mall
and negotiated the arrival of five lines of public
transport directly to the mall. Additionally, we
launched the mall´s customer rewards system
“Puntos Bonus”, which enables customers to
earn points for purchases made in the mall which
they can later use to redeem gifts, therefore
encouraging customer loyalty.
52 2014 Milestones
INOUTLET
FAUCETT
7,500 m2
IInOutlet Faucett, formerly known as the Lima
Outlet Center became Parque Arauco´s first
outlet mall in Peru after the incorporation of
this asset into our portfolio in 2013. In 2014
we successfully finished the expansion of the
asset and worked to improve its infrastructure
by adding underground parking. We improved
the commercial mix by incorporating various
new premium brands. Finally, we carried out
a marking campaign to launch the new brand
InOutlet Faucett.
VIAMIX
CHORRILLOS
4,000 m2
Viamix Chorrillos was incorporated into our portfolio
during the third quarter of 2014. In its 4,000 m2
of GLA the strip center has a Metro supermarket,
restaurants, services such as banks and various
smaller stores.
“I like the mall because I can come
to do everything: shop, eat, go
to the cinema with my daughter,
etc., all within a safe environment,
where everyone is very friendly
and helpful. Also, the view is one of
the prettiest in Lima.”
HANNELORE SCHREIBER
LARCOMAR
“We really like the ambiance in
Parque Lambramani, there are
more stores and it’s fun to
spend time here.”
CAMILO SOLARI
PARQUE LAMBRAMANI
2014 Milestones 53
COLOMBIA
54 2014 Milestones
GROWTH
In 2014, we began construction of Parque La Colina, the
largest project built at one time in the history of Parque
Arauco. It will be our principal shopping center in Colombia
and we expect it to become one of the best shopping
centers in the country.
2014 Milestones 55
PARQUE
ARBOLEDA
33,000 m2
Parque Arboleda is the city of Pereira´s
preferred mall. During 2014 the International
Council of Shopping Centers awarded Parque
Arboleda the silver medal in Cause-Related
Marketing during the 2014 Latin American
Shopping Center Awards. The shopping center
earned the award for its initiative to plant
2,000 trees in a forest in Pereira in honor of
the 150 year anniversary of the city. Parque
Arboleda was selected out of 170 participating
shopping centers.
In 2014 we incorporated a new concept of
casual restobars in order to position the mall as
an “After Office” option and thereby diversify
our commercial mix. We continued finishing
the interior of the Parque Arboleda office tower
which currently available to rent. Finally, we
implemented an energy efficiency project
that which we expect to reduce operating
costs as well as have a positive impact on
the environment.
56 2014 Milestones
PARQUE CARACOLÍ
38,500 m2
We launched Caracoli Mapps, an application
similar to Arauco Mapps and Larcomaps, which
helps customers navigate around the shopping
center. We also installed interactive touch screen
maps located throughout the mall, which helps
improve our customers´ shopping experience. We
continued improving the commercial mix of the mall
by opening new restaurants and stores, including
the second American Eagle in all of Colombia.
PARQUE
LA COLINA
63,500 m2
During 2014 we began the construction of
what will be our first shopping center in Bogota,
Colombia´s capital city. With an estimated
investment of US$289 million and 63,500 m2 of
GLA, the Parque La Colina project is advancing
on time and within budget.
“I visit Parque Arboleda because
you can find everything there:
excellent services like banks
as well as large international
stores and, furthermore, the
setting is spectacular.”
CAROLINA ZAPATA,
PARQUE ARBOLEDA
“I prefer Parque Caracolí because
of the comforts it offers such as
the Boulevard and its open-air
spaces. In particular, I enjoy the
events frequently held here, I
think it is a shopping center with
very good entertainment options
and a nice place to spend time
with your family.”
JULIANA CARVAJAL
PARQUE CARACOLÍ
2014 Milestones 57
FUTURE
CHALLENGES
Parque Arauco will continue developing
diverse projects in Chile, Peru and
Colombia that will offer a commercial mix
orientated to the needs of the community.
58 Future Challenges
Future Challenges 59
WE HAVE
ANNOUNCED
INVESTMENTS
OF MORE
THAN US$ 500
MILLION WHICH
WILL ADD MORE
THAN 100,000
2
M DURING
THE NEXT FEW
YEARS.
60 Future Challenges
“We are focused on the continued expansion of our
operations. In an evolving and challenging market,
we will continue to grow in the right countries, with
the right partners and the appropriate format, all the
while keeping our customers as our top priority.”
JUAN ANTONIO ÁLVAREZ,
EXECUTIVE VICE PRESIDENT, PARQUE ARAUCO S.A.
NEW
DEVELOPMENTS
Our investment plan consists of achievable
projects that reinforce our strategy of
diversification in terms of geographic reach
and type of formats.
NEW
DEVELOPMENTS
ESTIMATED
OPENIGN
DATE
ABL
TOTAL
(M2)
%
OUNERSHIP
ABL
PROPIO
(M2)
INVERSIÓN
TOTAL
(MMUS$)
PROJECT NAME
COUNTRY
FORMAT
Various Projects Stripcenters Chile
(Arauco Express)
Chile
Strip Center
Under
development
"Total
51,0%
7.140
30
Various Projects SCP
Peru
Strip Center/
Outlet
Under
development
25.000
51,0%
12.750
72
Various Projects MegaPlaza
Peru
Various
Under
development
TBD
50,0%
TBD
118
Parque La Colina
Colombia
Regional
1H 2017
63.500
55,0%
34.925
289
54.815
509
SUBTOTAL
102.500
EXPANSIONS
PROJECT NAME
COUNTRY
FORMAT
ESTIMATED
OPENIGN
DATE
Boulevard V Kennedy Expansion
Chile
Regional
1H 2015
1.000
100,0%
1.000
9
MegaPlaza Chimbote Expansion
Peru
Regional
Under
developement
2.500
50,0%
1.250
4
MegaPlaza Express Villa Expansion
Peru
Neighborhood
Under
development
500
50,0%
250
2
TOTAL
GLA (M2)
FINAL
STAKE
TOTAL
OWNED INVESTMENT
GLA (M2) (MMUS$)
SUBTOTAL
4.000
2.500
15
TOTAL
106.500
57.315
524
Future Challenges 61
LAND
BANK
COLOMBIA
PERU
CHILE
We have a valuable land bank that includes land
in Chile, Peru and Colombia, which is the base
for the company’s future growth.
62 Future Challenges
NAME
(M2)
OWNERSHIP
TOTAL COST MM$
Quilicura 2
25,486
100%
3
Buenaventura
94,802
100%
13
Coquimbo
40,000
100%
4
Chicureo
47,614
100%
10
Los Andes
40,000
100%
5
Otros en Chile
58,000
100%
20
TOTAL CHILE
305,902
100%
55
NAME
(M2)
OWNERSHIP
TOTAL COST MM$
Parque El Golf
15,000
70%
37
Lurin
67,000
100%
14
La Molina
10,085
51%
16
Colonial
2,960
51%
2
Landbank IPSA
169,745
50%
19
TOTAL PERU
264,790
64%
88
NAME
(M2)
% OUNERSHIP
TOTAL COST MM$
Barranquilla
56,000
100%
38
Neiva
47,000
100%
11
Valledupar
46,000
55%
17
TOTAL COLOMBIA
149,000
86%
66
TOTAL
719,692
84%
209
CHILE
• Our efforts are focused on seeking growth alternatives through
development of new assets, expansion of current assets, and
diversification of formats.
• We will add 1,000 m2 of GLA to the Luxury District of
Parque Arauco Kennedy, adding new and exclusive stores,
further solidifying our first-rate commercial mix. This new
expansion represents an investment of US$ 9 million and
will be inaugurated in the first half of 2015.
• We will continue developing strip centers in Chile, with an
investment of US$ 30 million, adding 14,000 m2 of GLA.
PERU
• Our efforts will be focused on consolidating our presence
in Peru, actively contributing to the modernization of the
national retail sector both through geographic diversification
of our operations and conceptualization of new shopping
center formats.
• We will invest US$ 72 million in projects in the company SCP,
in association with the group Los Portales, through expansion
of existing assets, development of new projects and purchase
of third party assets.
• We will invest US$ 124 million in the coming years in our
association with Grupo Wiese, through the expansion of
existing assets and the development of new projects.
COLOMBIA
• We will continue seeking out new business opportunities
based on a proposal of the rental of high-quality commercial
spaces, differing from the existing standard of the sale of
commercial spaces. This strategy has made us a point of
reference in the industry.
• We will continue the construction of Parque La Colina in
Bogota, which will offer 63,500 m2 of GLA and require an
investment of US$ 289 million. With three commercial floors
and a complete mix of recognized national and international
brands, we expect Parque La Colina to be an iconic shopping
center in Colombia.
Future Challenges 63
OTHER
IMPORTANT
INFORMATION
64 Other Important Information
Other Important Information 65
COMPANY
INFORMATION
BUSINESS NAME
Parque Arauco S.A.
TYPE OF COMPANY
Publicly Traded Company
STOCK MNEMONIC
PARAUCO
ADDRESS
Cerro Colorado 5240, Torre 1, Piso 15,
Las Condes, Santiago
TELEPHONE
(56 2) 2299 0510
FAX
(56 2) 2211 4077
[email protected]
WEBSITE
www.parauco.com
INVESTOR CONTACT
Samantha Zerbe
(56 2) 2299 0510
I.D.
94.627.000-8
DURATION OF THE COMPANY
Indefinite
SECURITIES REGISTRATION
NUMBER
0403
66 Other Important Information
INCORPORATION
DOCUMENTS
Parque Arauco S.A. (hereinafter also referred to as “Parque
Arauco” or “the company”) was incorporated through a public
deed on November 30, 1979, granted in the Santiago Notary
Office of Andrés Rubio Flores, and was amended by public
deed on February 23, 1981 granted in the same Notary Office.
Its by-laws were approved by Resolution 363-S on June 22,
1981 by the Superintendency of Securities and Insurance
(Superintendencia de Valores y Seguros – SVS).
The abstract of the authorization to do business and of the
approval of the by-laws was registered under folio 11408
number 6348 of the Commercial Registry at the Santiago
Proiperty Registry Office, and published in the Official Gazette
No. 31003 on June 30, 1981.
The by-laws were subsequently amended on multiple occasions,
the latest of these amendments being as follows: public deed
dated June 1, 1992, executed at the Notary Public of Andrés
Rubio Flores, with an abstract registered under folio 20648
number 10800 of the Commercial Registry at the Santiago
Property Registry Office, and published in the Official Gazette
No. 34308 on July 6, 1992; public deed dated July 20, 1992,
executed at the Notary Public of Andrés Rubio Flores, with an
abstract registered under folio 23842 number 12725 of the
Commercial Registry at the Santiago Property Registry Office,
and published in the Official Gazette No. 34333 on August 4,
1992; public deed dated April 7, 1994, executed at the Notary
Public of Andrés Rubio Flores, with an abstract registered
under folio 8260 number 6,805 of the Commercial Registry
at the Santiago Property Registry Office, and published in the
Official Gazette No. 34852 on April 29, 1994; public deed dated
October 21, 1994, executed at the Notary Public of Andrés
Rubio Flores, with an abstract registered under folio 25747
number 20928 of the Commercial Registry at the Santiago
Property Registry Office, and published in the Official Gazette
No. 35024 on November 24, 1994; public deed dated May 14,
1997, executed at the Notary Public of Andrés Rubio Flores,
with an abstract registered under folio 12154 number 9722
of the Commercial Registry at the Santiago Property Registry
Office, for the year 1997, and published in the Official Gazette
No. 35773 on May 24, 1997; public deed dated October 13,
2005, executed at the Notary Public of Andrés Rubio Flores,
with an abstract registered under folio 38425 number 27337
of the Commercial Registry at the Santiago Property Registry
Office, for the year 2005, and published in the Official Gazette
No. 38291 on October 20, 2005; public deed dated October, 3
2006, executed at the Public Notary of Andrés Rubio Flores,
with an abstract registered under folio 40703 number 28935
of the Commercial Registry at the Santiago Property Registry
Office, for the year 2006, and published in the Official Gazette
No. 38583 on October 7, 2006; public deed dated May 11, 2007,
executed at the Notary Public of Luis Poza Maldonado, with
an abstract registered under folio 20217 number 14744 of the
Commercial Registry at the Santiago Property Registry Office
and published in the Official Gazette No. 38771 on May 25,
2007; public deed dated April 14, 2011, executed at the Notary
Public of Raúl Undurraga Laso, with an abstract registered
under folio 20660 number 15673 of the Commercial Registry
at the Santiago Property Registry Office and published in the
Official Gazette No. 39942 on April 21, 2011; public deed dated
November 6, 2013, executed at the Notary Public of Andrés
Rubio Flores, with an abstract registered under folio 56676
number 56768 of the Commercial Registry at the Santiago
Property Registry Office and published in the Official Gazette
No. 40708 on November 16, 2013; and public deed dated May
7, 2014, executed at the Notary Public of Andrés Rubio Flores,
with an abstract registered under folio 34602 No. 21647 of
the Commercial Registry at the Santiago Custodian of Real
Estate and was published in the Official Gazette No. 40858
on May 16, 2014.
COMPANY
OWNERSHIP
As of December 31, 2014, the company’s capital is divided into
817,747,054 single series, no-par value payment shares. At this
date, records show that these are fully subscribed to and paid
for by a total of 398 shareholders.
12 main holders
NAME
NUMBER OF SHARES
% OWNERSHIP
Inmobiliaria Atlantis SA
212,503,700
25.99%
Banco de Chile on behalf of third party non-residents
125,497,066
15.35%
Banco Itau on behalf of investors
86,519,239
10.58%
Banchile C de B SA
47,283,106
5.78%
Santander S A C de B
34,153,456
4.18%
Banco Santander on behalf of foreign investors
24,217,965
2.96%
Bolsa de comercio de Santiago Bolsa de valores
23,215,333
2.84%
Inv Ranco Uno SA
19,457,292
2.38%
AFP Provida SA for Pension Fund C
18,419,300
2.25%
Inv Las Nieves SA
17,212,247
2.10%
Inv Ranco Dos SA
14,888,850
1.82%
Larrain Vial SA Corredora de Bolsa
11,492,000
1.41%
As of December 31, 2014, the controlling shareholder of Parque
Arauco S.A. is Inmobiliaria Atlantis S.A. (ID: 76.089.588-1),
holding 25.99% of Parque Arauco S.A.´s shares issued with
voting rights. There is no joint-action agreement for the members
of the controlling shareholder.
At this date, the only shareholders of Inmobiliaria Atlantis S.A.
and their respective controlling shareholders are the following:
1. Inversiones Cabildo SpA, holding 66.44% of Inmobiliaria
Atlantis S.A., has in turn the following shareholders and majority
shareholders totaling 96.54%:
a) Inversiones Delfín Uno S.A., holding 1.09% of Inversiones
Cabildo SpA, and whose majority shareholder is Isabel Somavía
Dittborn, national identity number 3.221.015-5.
b) Inversiones Delfín Dos S.A., holding 1.09% of Inversiones
Cabildo SpA, and whose majority shareholder is José Said Saffie,
national identity number 2.305.902-9.
c) Inversiones Delfín Tres S.A., holding 37.74% of Inversiones
Cabildo SpA, and whose majority shareholder is Salvador Said
Somavía, national identity number 6.379.626-3.
d) Inversiones Delfín Cuatro S.A., holding 18.87% of Inversiones
Cabildo SpA, and whose majority shareholder is Isabel Said
Somavía, national identity number 6.379.627-1.
e) Inversiones Delfín Cinco S.A., holding 18.87% of Inversiones
Cabildo SpA, and whose majority shareholder is Constanza Said
Somavía, national identity number 6.379.628-K.
f) Inversiones Delfín Seis S.A., holding 18.87% of Inversiones
Cabildo SpA, and whose majority shareholder is Loreto Said
Somavía, national identity number 6.379.629-8.
2. Sociedad Constructora Jardines del Bosque Limitada, holding
18.06% of Inmobiliaria Atlantis S.A., and whose main partner is
Inversiones Orlí Limitada, holding 70.003% of company rights
and whose majority shareholders are Orlando Sáenz Rojas,
national identity number 3.599.669-9 and Liliana Rica López,
national identity number 3.870.985-2.
3. Inversiones Innova S.A., holding 6.15% of Inmobiliaria Atlantis
S.A., whose shareholders and majority shareholders are the
Eluchans Barreda family, represented by José Domingo Eluchans
Urenda, national identity number 6.474.632-4.
4. Inversiones E.U. S.A. holding 2.62% of Inmobiliaria Atlantis
S.A., and whose shareholders are Florencia Eluchans Urenda,
national identity number 4.695.623-0; Celia Eluchans Urenda,
national identity number 4.727.634-9; Marcela Eluchans Urenda,
national identity number 6.065.798-K; Ana María Eluchans
Urenda, national identity number 6.374.216-3; Andrea Eluchans
Urenda, national identity number 6.374.217-1; María Angélica
Eluchans Urenda, national identity number 6.065.725-4; and
Edmundo Eluchans Urenda, national identity number 4.721.073-9.
5. Inversiones La Palma S.A., holding 1.66% of Inmobiliaria
Atlantis S.A., and whose majority shareholder is José Said Saffie,
national identity number 2.305.902-9.
Other Important Information 67
6. Inversiones Carma SpA, holding 0.50% of Inmobiliaria
Atlantis S.A., and whose shareholders are the Eluchans Aninat
family, represented by José Domingo Eluchans Urenda, national
identity number 6.474.632-4.
11. Inversiones M.A.E.U. S.A., holding 0.51 % of Inmobiliaria
Atlantis S.A., and whose shareholders are the Eluchans Urenda
family, represented by José Domingo Eluchans Urenda, national
identity number 6.474.632-4.
7. Inversiones Bravo Eluchans Uno Limitada, holding 0.52%
of Inmobiliaria Atlantis S.A., and whose shareholders are the
Bravo Eluchans family, represented by José Domingo Eluchans
Urenda, national identity number 6.474.632-4.
12. Inversiones Ana María Eluchans Urenda E.I.R.L., holding
0.51% of Inmobiliaria Atlantis S.A., and whose shareholders
are the Eluchans Urenda family, represented by José Domingo
Eluchans Urenda, national identity number 6.474.632-4.
8. Inversiones F.E.U. S.A., holding 0.47% of Inmobiliaria Atlantis
S.A., and whose shareholders are the Eluchans Urenda family,
represented by José Domingo Eluchans Urenda, national identity
number 6.474.632-4.
13. Inversiones Innova Limitada, holding 0.00001% of Inmobiliaria
Atlantis S.A., and whose shareholders are the Eluchans Urenda
family, represented by José Domingo Eluchans Urenda, national
identity number 6.474.632-4.
9. Inversiones C.E.U. S.A., holding 0.51 % of Inmobiliaria Atlantis
S.A., and whose shareholders are the Eluchans Urenda family,
represented by José Domingo Eluchans Urenda, national identity
number 6.474.632-4.
14. Sociedad de Inversiones E.B. Limitada, holding 1.51% of
Inmobiliaria Atlantis S.A., and whose shareholders are the
Eluchans Barreda family, represented by José Domingo Eluchans
Urenda, national identity number 6.474.632-4.
10. Inversiones A.E.U. S.A., holding 0.54 % of Inmobiliaria
Atlantis S.A., and whose shareholders are the Eluchans Urenda
family, represented by José Domingo Eluchans Urenda, national
identity number 6.474.632-4.
ESTRUCTURA ACCIONARIA
2.6%
6.2%
1.5
%0
Investment
Funds
.2%
Controlling
Group
6.1%
Brokers
7%
8.
27.6%
SHAREHOLDING
STRUCTURE
21.1%
2014
Pension Funds
Other
Shareholders
Said Yarur
Family
Abumohor Family
Mutual Funds
Insurance
Companies
26.0%
68 Other Important Information
DIRECTORS
Parque Arauco is a publicly traded company managed by a Board
of Directors consisting of nine members. Its members are elected
at the Ordinary Shareholders Meeting for a period of three years.
The Board of Directors is chaired by the Chairman and also has a
Vice Chair, who replaces the Chairman in his absence.
The current members of the Board of Directors were elected by
the Ordinary Shareholders Meeting held on April 25, 2013. They
are listed individually in this document.
In the 2014 fiscal year, the Board of Directors did not incur operating
costs, except those related to compensation of the members.
DIRECTORS
COMMITTEE
The company has a Directors Committee pursuant to Article
50 bis of the Chilean Corporations Act, Law 18,046. This
committee is elected by the Board of Directors and consists
of the following members:
• Sr. Rafael Aldunate Valdés
Tax ID: 5.193.449-0
• Sr. Joaquín Brahm Barril
Tax ID: 7.052.386-8
• Sr. Guillermo Said Yarur
3. Proposal of operational expenses for the Committee.
4. Review the Company’s audit plans with external auditors.
5. Consider information supplied by external auditors and
instruct Management to coordinate actions and oversight
necessary to implement the recommendations within set
deadlines and as specified.
6. Review the remuneration systems and compensation plans
for managers, core executives and other employees at the
Company.
Tax ID: 6.191.544-3
7. Additional functions during the 2014 fiscal year were to:
The Committee has prepared an annual report on its actions,
pursuant to Article 50 bis, which is presented below.
DIRECTORS COMMITTEE
ANNUAL REPORT
1. Introduction
• Monitor the Company’s corporate governance environment;
• Ensure the correct implementation of corporate policies;
• Manage the timely handling of complaints received through
the complaint system;
• Oversee the implementation of action plans resulting from
internal audit report recommendations;
• Monitor the various shopping centers;
• Design, implementation, certification and follow-up of Law 20.393.
1.1 Regulation
The Directors Committee (hereinafter “the Committee”) was
created in 2001 and its commitments and functions are in
constant evolution. Its regulations are contained in Article 50
bis of the Chilean Corporations Act and Circular No. 1.526 of
the Superintendence of Securities and Insurance.
1.2 Activities and Functions Carried out by the Committee
During this period, the Committee carried out its functions
based on the current regulatory framework.
In general, the Committee’s main activities were related to:
1. Analysis, opinion and approval of Parque Arauco S.A.´s (hereinafter
“the Company”) individual and consolidated, quarterly (and in
particular end of year) financial statements.
1.3 Composition of the Committee and
Attendance at Meetings
As of December 31, 2014, the structure of the Committee
was the following:
• As of December 31, 2014, the Committee consisted of the
Directors, Rafael Aldunate (Chairman), Guillermo Said and
Joaquín Brahm.
• In 2014, the following company staff attended the Committee:
Executive Vice Presidente Juan Antonio Álvarez, Corporate
Administration and Finance Manager Claudio Chamorro,
Accounting and Audit Manager Marco Antonio Henríquez,
and lawyers Consuelo Raby and Duncan Grob who acted as
secretaries.
2. Proposal of external auditing firms and credit ratings agencies.
Other Important Information 69
1.4 Remuneration and Expenses
2.1 Financial Information
The Committee incurred the following expenses in 2014:
The Committee paid special attention to reviewing the
Company’s annual financial statements prior to reporting
to the Board of Directors, as well as the quarterly financial
statements and other information reported to the market or
supervisory bodies during the fiscal year.
• Engaging of Deloitte Chile for specific consultations on legal
matters in the internal invoicing process.
• Visit to Peru and Colombia to review the Company’s assets.
1.5 Meeting Attendance
The Committee held monthly meetings in 2014, with no
extraordinary meetings taking place in this period.
DIRECTOR
ASSISTANCE
Rafael Aldunate (Chairman)
12/12
Guillermo Said
12/12
Joaquín Brahm
12/12
The Committee has reviewed the quarterly financial statements
and annual individual and consolidated balance sheets, has
checked their compliance with regulations and applicable
accounting principles, and has therefore ensured that these
statements reflect the Company’s assets position and variation,
the financial position and the results from the fiscal period.
The FECUs (Ficha Estadística Codificada Uniforme - Uniform
Coded Statistics File) were analyzed and approved in the
following meetings:
FECU
COMMITTEE MEETING
As of December 31, 2013
Approved at the Committee
meeting on February 27, 2014
As of March 31, 2014
Approved at the Committee
meeting on April 24, 2014
As of June 30, 2014
Approved at the Committee
meeting on July 31, 2014
As September 30, 2014
Approved at the Committee
meeting on October 30, 2014
2. Activities Carried out in the Year
This section contains a summary of the activities carried out
by the Committee in the 2014 fiscal year, grouping activities
to correspond to each of the basic functions.
Time dedicated to each function
The following chart shows an approximate distribution of
time dedicated to each function in the meetings held by the
Committee in 2014.
TIME DEDICATED TO EACH FUNCTION
2%
Review and
monitoring of Audit
Reports 63%
4%
7%
4%
Review and approval of
financial statements
External
auditors
20%
TIME DEDICATED TO
EACH FUNCTION
Diagnosis of
Processes
2014
63
%
Implementation
of the Crime
Prevention
70 Other Important Information
Compensation for
executives
2.2 External Auditors
In its meeting on March 27, 2014, the Committee suggested to the
Board of Directors that KPMG should be the external auditors to
audit the financial statements and to check the Company’s annual
balance sheets for the 2014 fiscal year.
The Board of Directors submitted this proposal to a vote at the
Ordinary Shareholders’ Meeting held on April 22, 2014, and it was
unanimously approved.
KPMG was also the auditor of the Company’s individual and
consolidated financial statements in the 2013 fiscal year.
The auditor has provided detailed information on the planning and
progress of its work. The Committee has analyzed the corresponding
audit reports, assisted by the auditor. The Committee’s meetings
and a description of its activities are listed below:
DATE
DESCRIPTION OF THE MATTERS COVERED
27.03
Proposal and bases for the election of the
external auditors.
28.08
KPMG Presentation on:
- Audit Plan as of December 31, 2014.
- Scope and schedule of 2014 Audit activities
for the Chile, Peru and Colombia divisions.
- Identification of materials to be considered
in the Audit.
27.11
The Internal Control Report issued by the external auditors
was reviewed and approved on December 27, 2014, pursuant
to the provisions in Circular No. 980 of the Superintendence of
Securities and Insurance, following a visit by the auditors who
presented on the matter.
The Committee was informed that there were no objective
reasons to question the independence of the external auditors.
2.3 Internal Auditors
Pursuant to its bylaws, the Committee supervises the Company’s
internal auditing activities. In exercise of this function, the
Committee must:
i. Review the annual internal audit work plan;
ii. Ensure the independence and efficiency of the internal
auditing process;
iii. Receive monthly information on its activities; and,
iv. Check that the Board of Directors considers the
conclusions and recommendations contained in its reports.
Audit
The Accounting and Internal Audit Manager reported annual
planning to the Committee in its meeting on March 27, 2014.
Throughout 2014, the Committee has been informed of work
performed under the annual plan, and other matters related to
this function, in 12 meetings held by the Committee.
The matters presented include various reports submitted to the
Committee, related to review of processes (in the Divisions,
Shared Services and Shopping Centers) and special reviews.
The types of audits performed are detailed in the following chart:
Main observations from the Internal Control
Letter for the 2014 period, none of which
constitute significant weaknesses.
types of audits
Assessment of
transversal
processes
22%
26%
Assessment of
Colombia Division
and Shopping
Centers
22%
Assessment of
Peru Division and
Shopping Centers
Assessment of
Chile Division and
Shopping Centers
4%
Additional
Reports
Diagnostics
17
%
9%
Other Important Information 71
Following the work carried out, the Accounting and Internal Audit
Manager has conducted a monthly presentation of the opportunities
for improvement identified and of their corresponding action
plans in the committee meetings. These have been gradually
resolved through the year. The matters reviewed mainly referred
to shopping centers and operating processes (Engineering and
Projects, invoicing, acquisitions, guaranties, suppliers, etc.) of
the Country Divisions.
In addition, the following activities were carried out with regard
to improvements in internal control:
• Redefinition of the Company’s current purchase and payment
release strategies.
• Standardization of processes together with the Processes
Department.
• Internal control talks given to staff in the Engineering and Projects
Department in the Chile Division.
2.4 Compliance
Parque Arauco S.A., through its permanent approach to strictly
comply with current laws and regulations and maintain high
regulatory standards, has implemented the Crime Prevention
Plan pursuant to Law 20.393 in order to mitigate possible
occurrences of risks identified, and achieving an adequate
control environment both for the Company and its employees.
The meetings during which the implemented plan was reviewed
are listed below:
DATE
DESCRIPTION OF THE MATTERS COVERED
27.02
- Progress report on certification for Law 20.393 (Crime Prevention Plan).
27.03
- Presentation of the fraud detection plan based on SAP data (SAS99)
- Current status of the Crime Prevention Plan
24.04
- Crime Prevention Plan certification process was initiated and carried out by the firm BH Compliance.
29.05
- The Committee unanimously appointed the Corporate Accounting and Audit Manager to take charge of the Crime
Prevention Plan, approving its draft, the Crime Prevention Policy and the Internal Regulation on Order, Hygiene and
Safety.
28.08
- Certificate was received on August 12, 2014, valid for 2 years with weekly monitoring.
On August 12, 2014, Parque Arauco was certified by the firm
BH Compliance.
Finally, in 2014, the Corporate Accounting and Audit
Management updated its Internal Audit Manual to achieve
continual improvement in reviewing the Company’s processes,
maintaining an emphasis on Internal Control, Risks and Corporate
Governance. This is a clear sign of the Company’s maturity
in risk management, business process management and its
internal auditing functions.
The following chart shows the Company’s maturity rating
(Institute of Internal Auditors Maturity Model).
The Company is currently at an “integrated” level and expects
to reach a “managed” level in the coming years:
72 Other Important Information
LEVEL 5
Optimized
Learning from inside and outside the
organization for continual improvement.
LEVEL 4
Managed
Integrating information through the organization to
improve corporate governance and risk management.
TARGET
LEVEL
CURRENT
LEVEL
LEVEL 3
Integrated
Professional IA practices and
management uniformly applied.
LEVEL 2
Infrastructure
Sustainable and repeatable IA
practices and procedures.
LEVEL 1
Initial
Unsustainable, repeatable capacities depends on individual efforts.
3. Conclusions
Throughout 2014, the Committee has adequately exercised the
responsibilities assigned to it in the by-laws.
The Committee has had continuous contact with the Accounting and
Internal Audit Manager, the Corporate Administration and Finance
Manager and the external auditor. The Committee has been able
to validate the quality and transparency of the Company’s regular
financial information and the efficacy of its internal control systems.
The Committee is satisfied with the work carried out by the internal
audit services in performing its mission to supervise compliance,
efficacy and efficiency of internal control systems, as well as reliability
and quality of the Company’s financial information.
The proposed appointment of the external auditor, monitoring of its
work, review of its conclusions and assessment of its independence
by the Committee have complied with the policies established.
The external auditor’s positive conclusions on the Company’s
financial statements confirm the quality of the Company’s financial
information systems and internal control.
Finally, the Committee has complied with the internal
processes established to ensure compliance with current
regulation, the Company’s internal policies and procedures,
and has ensured that the Management responds to the
measures proposed, generated through the reviews and
analysis conducted. In general, these are related to the
alignment on best international practices in terms of corporate
governance, the risk management model, fraud detection and
documenting of processes.
Other Important Information 73
NUMBER OF EMPLOYEES
WORKFORCE OF PARQUE ARAUCO PLUS SUBSIDIARIES
AS OF 12/31/2014
HEAD OFFICE
SUBSIDIARIES
TOTAL
Managers and Executives
86
21
107
Professionals and Technical Staff
75
77
152
Employees
58
19
77
TOTAL WORKFORCE
219
117
336
MATERIAL FACTS
PARQUE ARAUCO´S HISTORY
In 2014, the company reported the following material facts
to the SVS:
• 1979
The company is founded under the name Cocentral
Compañía de Centros Comerciales S.A.
• March 27
Reported the summon notice for the Ordinary and
Extraordinary Shareholders Meeting.
• April 22
Reported agreements adopted by the Ordinary and
Extraordinary Shareholders’ Meetings, held on the same
date.
• June 26
Reported an agreement by the Board of Directors to grant
certain top executives of the company stock options to
subscribe to a total of 12,777,777 company shares.
• October 16
Reported the signing of an agreement that established
the terms and conditions under which the company’s
affiliate Inmuebles Comerciales del Perú S.A.C. will acquire
100 % of the shares issued by Ekimed S.A.C., a company
incorporated and existing under the laws of the Republic
of Peru.
• October 17
Reported the effects of the Tax Reform on the Company.
• December 12
Reported the company´s issuance of “K Series” bonds.
SUMMARY OF COMMENTS AND
PROPOSALS
In the 2014 fiscal year, the company’s shareholders did not
submit comments or proposals related to progress in company
business. Comments and proposals made by the Directors
Committee are presented in the Directors Committee Report
included in this annual report.
• 1982
Opening of Parque Arauco Kennedy, the first regional
shopping center in Chile.
• 1989
Inauguration of the first food court in a shopping center in
Chile.
• 1992
The company changes its name to Parque Arauco S.A.
• 1993
The regional shopping center Arauco Maipú opens in Chile.
• 1994
A partnership is established between Parque Arauco S.A.
and Alto Palermo S.A., Argentina´s main shopping mall
developer and administrator.
• 1995
Initial Public Offering of Parque Arauco S.A.
• 1997
Parque Arauco S.A. incorporated into the ownership
structure of Inmobiliaria Mall Viña del Mar S.A.
• 1997
Inauguration of the first medical center integrated into a
shopping center in Chile.
• 2003
Opening of the first gastronomic boulevard in Chile.
• 2005
Creation of Inmuebles Comerciales del Perú (ICP),
subsidiary of Parque Arauco S.A. in Peru.
• 2006
Partnership formed with Grupo Wiese in Peru and
MegaPlaza Norte in Lima is added to the company´s
portfolio of regional shopping malls.
• 2007
Creation of Inversiones Colombianas Arauco S.A.S.,
subsidiary of Parque Arauco S.A. in Colombia.
• 2007
Parque Arauco S.A. takes control of Plaza El Roble regional
shopping center in Chillán, Chile.
74 Other Important Information
• 2007
Inauguration of the first Design District in a shopping
center in Chile.
Los Portales have joint ownership.
• 2008
Initial bond issuance by Parque Arauco S.A. in Chile.
• 2012
Launch of Arauco TAG, the first “free flow” system in a
shopping center parking lot in Chile.
• 2008
Acquisition of the Paseo Arauco Estación regional
shopping center in Chile.
• 2013
Inauguration of Arauco Quilicura regional shopping center
in Chile.
• 2008
Inauguration of Arauco Express Pajaritos, the company’s
first strip center.
• 2013
Acquisition of Lima Outlet Center, the company’s first
premium outlet mall in Peru.
• 2009
Inauguration of the regional shopping center Arauco San
Antonio in Chile.
• 2013
Opening of the regional shopping center Parque Caracolí in
Bucaramanga, Colombia
• 2009
MegaPlaza Express Villa, the company’s first neighborhood
shopping center, opens in Peru.
• 2013
Inauguration of MegaPlaza Express Chincha neighborhood
shopping center in Peru.
• 2010
Acquisition of Larcomar, an iconic regional shopping
center in Peru located in Lima´s traditional Miraflores
district.
• 2013
Opening of the MegaPlaza Cañete neighborhood
shopping center in Peru.
• 2010
Opening of the regional shopping center Parque Arboleda
in Pereira, the company’s first shopping center in Colombia,
a joint venture between Parque Arauco S.A. and Grupo
Bancolombia.
• 2010
The regional shopping mall Parque Lambramani is
inaugurated in Arequipa, Peru.
• 2010
Initial issuance of bonds by Inmuebles Comerciales del
Perú, subsidiary of Parque Arauco S.A. in Peru.
• 2013
Inauguration of MegaPlaza Barranca neighborhood
shopping center in Peru.
• 2013
Opening of the first Luxury District in a shopping center in
Chile.
• 2013
Launch of Arauco Mapps, the first geolocalization application
for a shopping center in Latin America.
• 2014
Parque Arauco S.A. capital increase.
• 2010
Sale of Parque Arauco S.A.’s share of Alto Palermo S.A.
• 2014
Second bond issuance by Parque Arauco S.A. in Chile.
• 2011
Parque Arauco S.A. capital increase.
• 2014
First syndicated loan in Colombia, funds to be used to
finance Parque La Colina.
• 2012
Second issuance of bonds by Inmuebles Comerciales del
Perú, subsidiary of Parque Arauco S.A.
• 2012
Creation of the company Arauco Express to manage the
strip center format in Chile, in which Parque Arauco S.A.
and Aurus Renta Inmobiliaria Fondo de Inversión have joint
ownership.
• 2012
Acquisition of Buenaventura Premium Outlet in Santiago,
Chile.
• 2014
Inauguration of Arauco Premium Outlet San Pedro and
Arauco Premium Outlet Curauma in Chile.
• 2014
Opening of the first strip center in Peru, Víamix
Chorrillos.
• 2014
Upgrade of Parque Arauco S.A. solvency rating to AA-, its
best rating ever.
• 2012
Inauguration of the regional shopping mall MegaPlaza
Chimbote in Peru.
• 2014
Incorporation of Parque Arauco S.A. to the Branding Hall of
Fame Chile, a recognition that places the company in the
top 40 brands in the country.
• 2012
MegaPlaza Express Villa El Salvador neighborhood
shopping center opens in Peru.
• 2014
Mall Arauco Quilicura becomes the first shopping center in
Chile to receive LEED certification.
• 2012
Creation of Strip Centers del Perú (SCP) to manage the strip
center format in Peru, in which Parque Arauco S.A. and Grupo
• 2014
Named “Best Managed Andean Corporate 2014” by LatinFinance.
Other Important Information 75
FLOWCHART
BOARD OF
DIRECTORS
DIRECTORS
COMMITTEE
EXECUTIVE VICE
PRESIDENT
Legal
Corporate Finance &
Administration
Human
Resources
Audit &
Control
Chile
Division
Colombia
Division
Peru
Division
TOP EXECUTIVES
ID NUMBER
NAME
TITLE
DATE APPOINTED
PROFESSION
7.033.770-3
Juan Antonio Álvarez
Avendaño
Executive Vice President
01-11-2011
Lawyer
10.585.375-0
Claudio Humberto
Chamorro Carrizo
Chief Financial Officer
01-02-2013
Business
Administration
11.703.205-1
Consuelo Raby Guarda
Corporate Legal Affairs
22-11-2010
Lawyer
10.036.478-6
Carolina Andrea Galletti
Vernazzani Fuente-Alba
Corporate Human Resources
Manager
01-08-2012
Business
Administration
9.401.560-K
Marco Henriquez
Espinoza
Accounting and Auditing Manager
02-01-2013
Accountant/Auditor
10.662.089-K
Eduardo Perez Marchant
Corporate Finance Manager
01-06-2013
Business
Administration
7.622.704-7
Andrés Torrealba Ruiz
Tagle
Chief Executive Officer,
Chile Division
01-01-2011
Business
Administration
13.434.482-2
Felipe Castro Del Rio
Commercial Manager,
Chile Division
01-10-2012
Business
Administration
13.549.346-5
Felipe Javier Ramirez
Huerta
Real Estate Manager,
Chile Division
01-06-2012
Civil Engineer
10.776.747-9
María Francisca Osorio
Asenjo
Shopping Centers Manager,
Chile Division
01-12-2011
Business
Administration
0-E (Extranjero)
Eduardo Herrera Vasquez
Chief Executive Officer,
Peru Division
01-11-2008
Industrial Engineer
13.905.640-K
Jose Luis Fernandez
Aquevueque
Finance and Administration
Manager, Peru Division
01-01-2013
Civil Industrial
Engineer
0-E (Extranjero)
Elizabeth Karina Meier
Zender
Commercial and Marketing
Manager, Peru Division
01-08-2003
Communications
and Marketing
0-E (Extranjero)
Alonso Fernando Gamero
Eguiluz
Infrastructure and Operations
Manager, Peru Division
15-02-2007
Civil Engineer
0-E (Extranjero)
Juan Pablo Romero
Restrepo
Chief Executive Officer,
Colombia Division
01-09-2008
Business
Administration
0-E (Extranjero)
Diego Mauricio Bermudez
Farias
Finance and Administration
Manager, Colombia Division
01-06-2012
Financial EMBA
The Directors of Parque Arauco S.A. have no direct ownership of
Parque Arauco S.A., except for Guillermo Said Yarur who directly
owns 0.04 % of the shares of Parque Arauco S.A.
The top executives of Parque Arauco S.A. have no direct ownership
in Parque Arauco S.A.
76 Other Important Information
TOP EXECUTIVES
REMUNERATION
Total remuneration received by the company’s top executives in
2014 was CLP 4,291 million. In turn, the total remuneration received
by the company’s top executives in 2013 was CLP 3,565 million.
INCENTIVE PLANS
There is a performance bonus, which is paid based on the
company´s annual EBITDA. This is paid to all employees and
is differentiated according to the position held in the company.
PAYMENTS TO DIRECTORS
Summary of Payments to Directors in 2014
DIRECTOR´S
COMMITTEE (CLP
THOUSANDS)
RUT
FIXED COMPENSATION
(CLP THOUSANDS)
2.305.902-9
57,611
Sr. Guillermo Said Yarur
6.191.544-3
28,806
Sr. Salvador Said Somavía
6.379.626-3
28,806
Sr. Rafael Aldunate Váldes
5.193.449-0
28,806
Sr. René Abumohor Touma
3.065.693-8
28,806
Sr. Joaquín Brahm Barril
7.052.386-8
28,806
Sr. Orlando Saénz Rojas
3.599.669-9
28,806
28,806
José D. Eluchans Urenda
6.474.632-4
28,806
28,806
Sra. Rossana Gaio Cuevas
6.934.528-K
28,806
28,806
DIRECTOR
Sr. José Said Saffie
TOTAL
TOTAL (CLP
THOUSANDS)
57,611
18,723
47,529
28,806
18,723
47,529
28,806
18,723
47,529
288,059
56,169
344,228
FIXED COMPENSATION
(CLP THOUSANDS)
DIRECTOR´S
COMMITTEE (CLP
THOUSANDS)
TOTAL (CLP
THOUSANDS)
Summary of Payments to Directors in 2013
DIRECTOR
RUT
Sr. José Said Saffie
2.305.902-9
52,451
Sr. Guillermo Said Yarur
6.191.544-3
26,226
Sr. Salvador Said Somavía
6.379.626-3
26,226
Sr. Rafael Aldunate Valdés
5.193.449-0
26,226
Sr. René Abumohor Touma
3.065.693-8
26,226
Sr. Joaquín Brahm Barril
7.052.386-8
26,226
Sr. Timothy Purcell
14.577.313-K
5,482
5,482
Sr. Orlando Saénz Rojas
3.599.669-9
26,226
26,226
Sr. José D. Eluchans Urenda
6.474.632-4
26,226
26,226
Sra. Rossana Gaio Cuevas
6.934.528-K
20,744
20,744
TOTAL
262,259
52,451
17,935
44,161
26,226
17,935
44,161
26,226
17,935
53,805
44,161
316,064
Other Important Information 77
STOCK OPTIONS
At the company’s Extraordinary Shareholders’ Meeting held
on April 22, 2010 (the “Meeting”), shareholders agreed to
implement a shares purchase program of its own shares (the
“Program”) pursuant to Articles 27 to 27C of Law No. 18,046 on
Companies, in order to define a compensation plan for employees
of the company and its subsidiaries (the “Compensation Plan”).
To this end, the Meeting agreed to acquire shares issued by the
company representing 2% of the total shares issued, subscribed
and paid up for the company, charged against retained earnings
as required by the law. This acquisition of shares must be made
pursuant to Acquisition of the 27B of Law No. 18,046, that is, it
must be carried out in stock exchanges through systems that
allow pro rata acquisition of shares received and should these not
be sufficient for the percentage to be purchased, the remainder
may be purchased in the secondary market. Notwithstanding
the foregoing, the Meeting authorized purchase in the secondary
market of a representative amount of up to 1% of the company’s
share capital within any 12-month period, without needing to
apply the pro-rata procedure. The Program duration shall be
for 5 years from the date of the Meeting. The Meeting gave the
Board of Directors ample powers to freely decide the amount
and the occasion when the company’s own shares would be
purchased by the company for the Program. Moreover, pursuant
to the provisions in Article 27A of Law No. 18046, the Meeting
agreed the purchase price of the shares should be determined
by the company’s Board of Directors on each occasion.
On December 7, 2010, the company purchased 3,250,000 of
its own shares through the stock exchange and charged them
to its retained earnings, representing 0.53% of all company
shares issued, subscribed and paid up. To date, no stock options
charged to the Compensation Plan have been exercised.
On April 7, 2011, the Extraordinary Shareholders Meeting
authorized the sale of 3,250,000 of its own shares, originally
intended as an executive compensation plan. To date, these
shares have not been sold.
In addition, the company’s Board of Directors, in its meeting
on June 26, 2014, and pursuant to agreements adopted in
Extraordinary Shareholders’ Meetings held on October 23, 2013,
resolved to grant the company’s top executives stock options
for a total of 12,777,777 company shares. The strike price was
set at the equivalent amount in Chilean pesos, legal tender, of
0.0382 UF per share. The stock options can be exercised until
June 2016 and subscription of the shares must take place by
September 28, 2018.
EQUITY
EQUITY
CH$ THOUSANDS
Issued capital
Treasury shares
The company’s Board of Directors, in its meeting on July 25,
2013, and pursuant to agreements adopted in Extraordinary
Shareholders’ Meetings on April 22, 2010 and April 7, 2011,
resolved to grant the company’s top executives stock options
for a total of 13,250,000 company shares.
Part of these stock options will be charged against 3,250,000
shares purchased by the Company on December 7, 2010. The
strike price was set at the equivalent amount in Chilean pesos,
legal tender, of 0.0536 UF per share. Subscription of the shares
must take place by September 7, 2015.
The remaining portion of these options shall be granted against
the 10,000,000 shares earmarked for this purpose, in accordance
with the agreement made at the Extraordinary Shareholders’
Meeting held April 7, 2011. For this case, the strike price was
set at the equivalent amount in Chilean pesos, legal tender, of
0.0433 UF per share. The stock options are payable annually
from July 2013 until December 2015, with the maximum
subscription period ending January 7, 2016. At the time this
report was written, no executives have exercised their stock
options either entirely or in part.
78 Other Important Information
(3,736,839)
Accumulated earnings (losses)
309,444,765
Premium on new issued shares
200,964
Other reserves
(4,950,870)
Minority interest
142,243,819
TOTAL EQUITY
780,127,085
BANKS
Banco Estado, Banco de Chile, Banco Santander, BCI, Itau, Banco
Security, Banco Internacional and Metlife in Chile; Interbank
and BCP in Peru; Bancolombia, Corpbanca, Banco de Bogotá
and Davivienda in Colombia.
EXTERNAL AUDITORS
KPMG
During the same Extraordinary Meeting, a capital increase
of $110,000,000,000 was approved through the issuance of
100,000,000 registered shares of the same series and without
par value. Of this issuance, 10,000,000 shares are earmarked
for executive compensation plans.
336,925,246
LEGAL ADVISORS
The company’s Corporate Legal Management engages legal
services from third parties depending on specific needs.
TRADEMARKS AND PATENTS
The company has registered Parque Arauco and various other
trademarks registered with the Department of Industrial Property,
Ministry of Economy. These registrations are valid for ten years,
renewable upon expiration.
CUSTOMERS
The direct customers of Parque Arauco S.A. are the tenants of
the leased spaces within the company´s shopping centers. Its
indirect customers are the consumers that visit the shopping
centers, who are also essential for the company´s business.
No single customer represents 10% or more of the company’s
total revenues.
SUPPLIERS
18. The La Colina project is located in the city of Bogotá, Colombia.
It is being constructed on 53,652 m2 of land.
Given the characteristics of Parque Arauco S.A.´s business, its
main suppliers are utility companies, construction companies, and
advertising and marketing firms as well as service companies in
general, such as those offering security, maintenance, cleaning,
etc.; mass medias such as newspapers, magazines, radio and
TV broadcasters, among others. No single supplier individually
represents 10% or more of total purchases.
19. MegaPlaza Norte shopping center is located in the city of
Lima, Peru. It is built on 138,312 m2 of land.
OWNED
PROPERTIES
01. Parque Arauco Kennedy shopping center is located in the
township of Las Condes in the city of Santiago, Chile. It is
built on 86,767 m2 of land.
20. MegaPlaza Express Villa Chorrillos neighborhood center is
located in the city of Lima, Peru, in the township of Chorrillos,
built on 10,000 m2 of land.
21. MegaPlaza Express Villa El Salvador neighborhood center
is located in Villa El Salvador in Lima, Peru, built on 8,600
m2 of land.
22. Parque Lambramani shopping center is located in the
township of Cercado de Arequipa, province and department
of Arequipa, Peru. It is built on 21,158 m2 of land.
23. MegaPlaza Express Barranca is located in the township and
province of Barranca, Peru, on 4,574 m2 of land.
02. Arauco Maipú shopping center is located on 141,413 m2 of
land, located in the township of Maipú in the city of Santiago,
Chile.
24. MegaPlaza Express Chincha is located in Chincha Alta,
Peru, on 28,750 m2 of land.
03. Arauco Chillán shopping center is located in the city of
Chillán, Chile; on 6,989 m2 of land.
25. MegaPlaza Cañete is located in San Vicente de Cañete,
province of Cañete, Peru, on 30,276 m2 of land.
04. Arauco Express Pajaritos strip center is located in the township
of Maipú, city of Santiago, Chile; on 14,429 m2 of land.
26. MegaPlaza Pisco project is located in the city of Pisco, Peru.
It is begin built on 52,547 m2 of land.
05. Arauco Express Calama strip center is located in the city of
Calama, Chile; on 3,671 m2 of land.
27. VíaMix Chorrillos strip center is located in the city of Lima,
Peru. It is built on 3,500 m2 of land..
06. Arauco Express Colón strip center is located on 1,480 m2 of
land in the township of Las Condes, in the city of Santiago, Chile.
28. Arauco Premium Outlet Buenaventura expansion project is
located in the township of Quilicura, in the city of Santiago,
Chile. The expansion project is built on 25,400 m2 of land.
07. Arauco Express Manuel Montt strip center is located in
the township of Providencia, in the city of Santiago, Chile;
on 1,646 m2 of land.
8. Arauco Express Irarrázaval strip center is located on 2,444 m2
of land in the township of Ñuñoa, in the city of Santiago, Chile.
PROPERTIES WITH LEASING
AGREEMENTS
9. Arauco Express Luis Pasteur strip center is located in the
township of Vitacura, in the city of Santiago, Chile; on 1,662
m2 of land.
01. Paseo Arauco Estación shopping center is located in the
township of Estación Central, in the city of Santiago, Chile. It is
built on 238,860 m2 of land.
10. Arauco Express Palmares strip center is located in the city of
Viña del Mar, Chile; on 1,627 m2 of land.
02. Arauco Express Las Brujas strip center is located on
7,490 m2 of land in the township of La Reina, in the city of
Santiago, Chile.
11. Arauco Express Ossandon strip center is located on 1,413 m2
of land in the township of La Reina, in the city of Santiago, Chile.
12. Arauco Express El Carmen de Huechuraba is located on
2,027 m2 of land in the township of Huechuraba, in the city
of Santiago, Chile.
13. Arauco San Antonio shopping center is located in the
township and city of San Antonio, Chile; on 8.723 m2 of land.
14. Arauco Quilicura is located in the township of Quilicura,
in the city of Santiago, Chile. It is built on 75,024 m2 of land.
15. Arauco Premium Outlet Buenaventura is located in the
township of Quilicura, in the city of Santiago, Chile. It is built
on 38,272 m2 of land.
16. Parque Arboleda shopping center is in the city of Pereira,
Colombia; it is located on 15,429 m2 of land.
17. Parque Caracolí Shopping center is located in the city of
Bucaramanga, Colombia; it is located on 23,148 m2 of land.
03. Arauco Express Ciudad Empresarial strip center is located
in the township of Huechuraba, city of Santiago, Chile; on
5,454 m2 of land.
04. Arauco Express Recoleta Project is located in the township
of Recoleta, Santiago. 6,554 m2 of land.
05. Arauco Premium Outlet Concepción is located in the city
of Concepción, Chile. It is built on 35,003 m2 of land.
06. Arauco Premium Outlet Curauma is located in the
township of Valparaíso, Chile. It is built on 30,943 m2 of land.
07. Larcomar shopping center is located on 44,675 m2 of land
in the city of Lima, Peru, in the township of Miraflores, on a
cliff overlooking the Pacific Ocean.
08. MegaPlaza Chimbote shopping center is located in the
township of Chimbote, Santa Province, Ancash department,
Peru, with approximately 39,000 m2 of land.
Other Important Information 79
09. InOutlet Faucett is located in the city of Lima, Peru. It is built
on 9,364 m2 of land.
10. Expansion of Arauco Chillán shopping center, located in the
city of Chillán, Chile. The expansion is built on 2,500 m2 of land.
INSURANCE
CHILE
MAXIMUM INDEMNITY LIMIT
AMOUNT (UF)
All Risks Physical Property
27,190,417
Terrorism1
3,500,000
7,500
Glass
Civil liability
70,000
2
25,000
Employee Fidelity ᶾ
3
Personal Accidents (customers)
2
Personal Accidents (employees)
2
21,000
45,000
PERU
MAXIMUM INDEMNITY LIMIT
AMOUNT (USD)
All Risks Fire/Multi-Risk
112,783,985
Terrorism
112,783,985
1
2,870,000
Civil liability2
75,000
Employee Fidelity4⁴
Personal Accidents (customers)2
861,000
Personal Accidents (employees)2
1,845,000
COLOMBIA
MAXIMUM INDEMNITY LIMIT
Combined material damage
141,617,000
Terrorism1
Civil liability
AMOUNT (USD)
178,837,975
5
2,870,000
2
Employee Fidelity ᶾ
1,025,000
3
2
861,000
Personal Accidents (employees)2
1,845,000
Personal Accidents (customers)
(1) Terrorism: shared limit for Peru, Colombia and Chile
(2) Amounts per program, shared for Peru, Colombia and Chile (the
indicated limits represent the total combined limit)
(3) Shared limit for Colombia and Chile
(4) Amount per location
(5) Exchange rate USD/COP 2.389,5
FINANCIAL
ACTIVITIES
The company invests its free cash flow in financial instruments
such as reverse repos, mutual funds, investment funds, certificates
of deposit, trusts, etc. depending on which is most convenient
in terms of the risk-return ratio and liquidity. This is done by
rigorously comparing the alternatives available at the time in
the capital markets. The financing policy consists of attracting
capital market resources to finance projects approved by the
80 Other Important Information
Board of Directors, complying with the covenants set forth in
outstanding obligations. Financial liabilities mainly consist of
bank loans and structured long-term bonds, in order to match
the terms between generation of resources and debt servicing.
The main financial covenants include the following ratios:
• Debt to equity ratio: Liabilities/Equity lower than 1.4; Net
Financial Debt/Equity lower than 1.5.
• Interest coverage ratio: EBITDA/financial expenses: greater
than 2.5.
RESEARCH AND
DEVELOPMENT
A primary goal of the company is to satisfy the needs of our
visitors, which means constantly assessing our performance,
new market trends, changes in consumer habits and preferences.
This is achieved through continuous market analysis of more
developed markets, market research, and analyzing our standards
and processes. In addition, the increasingly demanding
requirements of our customers mean we need to constantly
innovate at our shopping centers, continuously renewing our
offering, and thus, remaining industry leaders.
RISK
FACTORS
The company could potentially face a number of risk factors,
as outlined below.
Economic activity
Our tenants’ levels of business and sales are linked, among
other factors, to economic growth and consumer confidence
in each area where we operate. A deterioration in economic
activity could adversely affect store sales in our shopping
centers and consequently the company’s revenue, given that
a percentage of revenue depends on certain tenants’ business.
Approximately 84% of Parque Arauco’s rental revenues are
fixed while 16% depends on the sales volume of certain stores
in our shopping centers.
Land Availability
The availability of strategically located land, suitable for construction
of shopping centers, is essential to future growth. Parque Arauco
S.A. now has a large land bank that will be the base of future
company growth. The land currently in our possession was
purchased for a specific project which will be developed once all
the necessary permits are obtained and Parque Arauco´s Board
of Directors has approved the project.
Other risks
Parque Arauco does not hold speculative positions on the
derivatives market, any hedges taken are to ensure a certain return.
Each country division of the company generally maintains its
revenues and operating and financial costs in the local currency.
The company is also subject to return risks on investments in
Colombia and Peru, subject to economic variables, such as
exchange and interest rates, taxes and others.
INVESTMENT
POLICIES
The company has an investment program with a policy aimed at
maintaining our leadership in the sector and developing profitable
projects, adopting differentiating factors in these activities and
maintaining an appropriate level of working capital and debt
level according to company cash flows.
DIVIDEND
POLICY
The dividend policy is to distribute at least 30% of net profits
each fiscal year.
Dividends paid per share during the last eight years:
A general deterioration in the economy could also affect the
occupancy level of shopping centers. Parque Arauco holds
mostly medium- and long-term contracts to ensure a minimum
lease period. The company also maintains a solid contractual
framework coupled with a solid financial position to deal with
a downturn in the economy.
Access to Consumer Credit
Due to consumer credit restrictions resulting from the current
economic environment, store sales could be affected, impacting
Parque Arauco S.A.’s variable revenue from tenants.
Competition
The majority of Parque Arauco S.A.’s direct competitors are associated
with large business groups and have access to financing to support
their growth. Strong competition could lead to lower leasing fees.
One of Parque Arauco S.A.’s advantages over its competitors is its
flexibility to diversify its formats. Parque Arauco has extended the
concept of a traditional shopping center developer and operator
to other non-traditional formats such as outlet malls and strip
centers. Thus, Parque Arauco develops traditional formats with the
most appropriate anchor store for each location, and also develops
non-traditional formats without anchor stores.
DATE OF
DIVIDEND
DISTRIBUTION
$ PER SHARE IN
CURRENCY AT DATE
INDICATED
FISCAL YEAR
16
08.05.06
10
2005
17
08.05.07
10
2006
18
06.05.08
9.5
2007
19
12.05.09
9,5
2008
20
05.05.10
29
2009
21
04.05.11
39
2010
22
10.05.12
27
2011
23
10.05.13
27
2012
24
12.05.14
27
2013
DIVIDEND Nº
Other Important Information 81
CORPORATE STRUCTURE
INMOBILIARIA MALL
VIÑA DEL MAR S.A.
33.3%
99.99252%
PARQUE ARAUCO S.A.
100%
DESARROLLOS
INMOBILIARIOS SAN
ANTONIO S.A.
51%
0.000009%
99.999991%
CENTROS COMERCIALES
VECINALES ARAUCO
EXPRESS S.A.
0.00748%
INTERNACIONAL S.A
51%
99%
INVERSIONES PARQUE
ARAUCO UNO S.A.
1%
80%
CENTRO COMERCIAL
ARAUCO EXPRESS
CIUDAD EMPRESARIAL
S.A.
PARQUE ARAUCO
NUEVA ARAUCO SpA
PLAZA El ROBLE S.A.
0.01%
99.99%
0.002050%
99.997950%
INVERSIONES PARQUE
ARAUCO DOS S.A.
99.999992%
CONSTRUCTORA Y
ADMINISTRADORA
UNO S.A.
0.000008%
0.01%
PARQUE ARAUCO
ARGENTINA S.A.
INVERSIONES VILLA EL SALVADOR
S.A.C.
5%
95%
COMERCIAL ARAUCO
LTDA.
ALTEK TRADING S.A.C.
99.99972%
0.00028%
GERENCIA DE CENTROS
COMERCIALES S.A.C.
TODO ARAUCO S.A.
ADMINISTRADORA PANAMERICANA
S.A.C.
83%
INMOBILIARIA PASEO DE
LA ESTACIÓN S.A.
99.99%
99.336150%
CORPORACIÓN ANDAMAN S.A.C.
0.663850%
PLAZA ESTACIÓN S.A.
98.95%
INVERSIONES ARAUCO
BARRANQUILLA S.A.S.
1.05%
55%
100%
INVERSIONES
COLOMBIANAS ARAUCO
S.A.S.
INVERSIONES ARAUCO
ALAMEDA S.A.S.
100%
INVERSIONES
INMOBILIARIA
BUCARAMANGA
ARAUCO S.A.S.
82 Other Important Information
100%
INMOBILIARIA LA
COLINA ARAUCO S.A.S.
49.08%
6%
EJE CONSTRUCCIONES
S.A.S.
0.0037%
99.9963%
99.99%
0.002%
99.998%
FASHION CENTER S.A.
0.03%
PARQUE EL GOLF S.A.C.
100%
5%
99.99%
0.01%
DEL PERÚ S.A.C.
99.97%
INVERSIONES VILNA S.A.C.
PARQUE LAMBRAMANI S.A.C.
INMUEBLESCOMERCIALES
51%
INVERSIONES INMOBILIARIAS
EBURNS S.A.C.
INMOBILIARIA NUEVA CENTURIA
S.A.C.
INVERSIONES INMOBILIARIAS
PUERTO PIZARRO S.A.C.
INMOBILIARIA KOTARE S.A.C.
SOCIEDAD DE INVERSIONES Y
GESTIÓN SA.C.
INVERSIONES BAIRIKI S.A.C.
INVERSIONES DIAMANDA S.A.C.
INVERSIONES LAMBORE S.A.C.
INVERSIONES TERMASIA S.A.C.
STRIP CENTERS DEL PERÚ S.A.
45%
INMUEBLES PANAMERICANA S.A.
INMOBILIARIA CASTELL S.A.C.
50%
67%
99.98%
0.02%
50%
99.98%
99%
INMOBILIARIA BOTAFOGO S.A.C.
INVERSIONES KANDOO S.A.C.
INMOBILIARIA SAN SILVESTRE S.A.
INMOBILIARIA COSTA NUEVA S.A.C.
INVERSIONES ALAMEDA SUR S.A.C.
ADMINISTRADORA CAMINO REAL
S.A.C.
0.01%
INMOBILIARIA COLOMERA S.A.C.
INVERSIONES LENDIPO S.A.C.
INMOBILIARIA PISAC S.A.C.
Colombiano Peso
Argentine Peso
Soles
Chilean Peso
USD
Other Important Information 83
STOCK EXCHANGE
INFORMATION
The company’s shares are traded on the Santiago Stock Exchange,
Valparaíso Stock Exchange and the Chilean Electronic Stock
Exchange. The average price, number of shares traded and total
amount traded for 2014 are shown below on a quarterly basis.
In 2014, Parque Arauco S.A. did not trade on the Valparaíso
Stock Exchange.
N° OF SHARES TRADED
TOTAL AMOUNT TRADED ($)
AVERAGE PRICE ($)
First Quarter 2014
88,317,701
85,226,754,852
965.00
Second Quarter 2014
58,289,751
58,738,226,006
1007.69
Third Quarter 2014
31,417,970
33,877,899,708
1078.30
Fourth Quarter 2014
42,781,279
49,644,421,852
1160.42
N° OF SHARES TRADED
TOTAL AMOUNT TRADED ($)
AVERAGE PRICE ($)
5,770,229
5,622,284,179
982.40
Second Quarter 2014
2,512,077
2,566,180,376
1,014.13
Third Quarter 2014
466,280
505,595,673
1,084.32
Fourth Quarter 2014
1,226,265
1,415,625,101
1,154.42
First Quarter 2014
84 Other Important Information
SANTIAGO
STOCK
EXCHANGE
CHILEAN
ELECTRONIC
STOCK
EXCHANGE
SUBSIDIARIES
AND AFFILIATES
CHILE (CAPITAL AMOUNT EXPRESSED IN THOUSANDS OF CHILEAN PESOS)
DIRECT AND
INDIRECT
OWNERSHIP (%)
NAME
CAPITAL
BUSINESS TYPE
BOARD AND SENIOR MANAGEMENT
Comercial Arauco Ltda.
100
Construction and lease of
commercial space
Chairman: Juan Antonio Álvarez General
Manager: Andrés Torrealba R.
100.00%
Constructora y
Administradora Uno S.A
18.064.069
Construction and lease of
commercial space
Chairman: Claudio Chamorro General Manager:
Andrés Torrealba R.
100.00%
Desarrollos Inmobiliarios
San Antonio S.A
685.944
Construction and lease of
commercial space
Chairman: Felipe Ramirez General Manager:
Andrés Torrealba R.
51.00%
Inmobiliaria Paseo de la
Estación S.A
15.266.108
Construction and lease of
commercial space
Chairman: Felipe Ramirez General Manager:
Andrés Torrealba R.
83.00%
Inversiones Parque
Arauco Dos S.A
4.918.484
Construction and lease of
commercial space
Chairman: Claudio Chamorro General Manager:
Andrés Torrealba R.
100.00%
Inversiones Parque
Arauco Uno S.A
1.500.480
Construction and lease of
commercial space
Chairman: Claudio Chamorro General Manager:
Andrés Torrealba R.
100.00%
Plaza El Roble S.A.
22.570.862
Construction and lease of
commercial space
Chairman: Claudio Chamorro General Manager:
Andrés Torrealba R.
100.00%
Parque Arauco
Internacional S.A.
USD
450.933.549
Investment company
Chairman: Juan Antonio Álvarez General
Manager: Claudio Chamorro
100.00%
Todo Arauco S.A.
1.654.876
Organization of publicity
events and promotions
Chairman: Claudio Chamorro General Manager:
Andrés Torrealba R.
100.00%
Inmobiliaria Mall Viña del
Mar S.A.
26.102.080
Construction and lease of
commercial space
Chairman: Sergio Hidalgo Herazo General
Manager Sergio Novoa
33.33%
Centros Comerciales
Vecinales Arauco
Express S.A.
24.295.890
Construction and lease of
commercial space
Chairman: Juan Carlos Délano General Manager:
Rodrigo Farías Romero
51.00%
Centro Comercial
Arauco Express Ciudad
Empresarial S.A.
2.067.164
Design, construction,
development, operation,
management and
commercialization of
groups of stores or
groups of service centers,
managed as one unit, either
by the company or by third
parties
Chairman: Andrés Torrealba R. General Manager:
Rodrigo Farías Romero
80.00%
Nuevo Arauco S.p.A.
2.443
Development, construction
and lease of real estate
projects
N/A
100.00%
Plaza Estación S.A.
40.956
Development, construction
and lease of real estate
projects
Chairman: Claudio Chamorro General Manager:
Andrés Torrealba R.
83.66%
Other Important Information 85
PERU (CAPITAL AMOUNT EXPRESSED IN SOLES)
NAME
CAPITAL
BUSINESS TYPE
BOARD AND SENIOR MANAGEMENT
DIRECT AND
INDIRECT
OWNERSHIP (%)
Inmuebles Comerciales del Perú
S.A.C. (ICP)
840.135.267
Development, construction and
lease of real estate projects
Directors: César Emilio Rodríguez Larraín Salinas
(Chairman), Manuel Fernando Jorge Carlos Velarde
Dellepiane, Juan Antonio Álvarez Avendaño, José
Domingo Eluchans Urenda, Guillermo Said Yarur,
Salvador Cornelio Said Somavia, José Luis Fernández
Aqueveque; General Manager: Eduardo Martín Herrera
Vásquez;
100.00%
Fashion Center S.A. (FC)
44.347.351
Development, construction and
lease of real estate projects
Directors: Juan Antonio Álvarez Avendaño, José
Domingo Eluchans Urenda, Guillermo Said Yarur;
General Manager: Luis D´Angelo Macchiavello
100.00%
Parque El Golf S.A.C. (PEG)
2.966
Development, construction and
lease of real estate projects
Directors: Juan Antonio Álvarez Avendaño, José
Domingo Eluchans Urenda, Guillermo Said Yarur;
General Manager: Eduardo Martín Herrera Vásquez
100.00%
Parque Lambramani S.A.C. (PL)
92.328.949
Development, construction and
lease of real estate projects
Directors: Juan Antonio Álvarez Avendaño, José
Domingo Eluchans Urenda, Guillermo Said Yarur;
General Manager: Bruno Bedoya Abuid;
100.00%
Inversiones Vilna S.A.C. (IV)
16.316.940
Development, construction and
lease of real estate projects
General Manager: Eduardo Martín Herrera Vásquez
99.99%
Strip Centers del Perú S.A. (SCP)
97.781.662
Development, construction and
lease of real estate projects
Directors: Ernesto Arturo Raffo Paine, Guillermo Juan
Velaochaga Raffo, Eduardo Martín Herrera Vásquez,
Juan Antonio Álvarez Avendaño; General Manager:
Juan Carlos Orrillo Iglesias
51.00%
Altek Trading S.A.C.
47.870.000
Development of real estate
projects
Directors: Marco Aveggio Merello, Gonzalo de la
Puente Wiese, Alonso Fernando Gamero Eguiluz,
Eduardo Martin Herrera Vasquez, Detlef Wolfgan
Mauer, Enrique Manuel Miyasato; General Manager:
Percy Luis Vigil Vidal
33.50%
Inmobiliaria Colomera S.A.C.
9.453.613
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inmuebles Panamericana S.A.
315.981.257
Development of real estate
projects
Directors: Augusto Felipe Wiese De Osma, Jose
Domingo Eluchans Urenda, Gonzalo de la Puente
Wiese, Jose Said Saffie, Cesar Emilio Rodriguez Larrain
Salinas, Marco Aveggio Merello, Juan Antonio Alvarez
Avendaño; General Manager: Percy Luis Vigil Vidal
Inversiones Villa el Salvador
S.A.C.
37.172.497
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inversiones Alameda Sur S.A.C.
17.527.278
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Administradora Panamericana
S.A.C.
5.350
Management, marketing and
promotion of shopping malls
and all related activities
General Manager: Administradora Panamericana S.A.C. 50.00%
Gerencia de Centros Comerciales 11.699.651
S.A.C.
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Soc. de Inversiones y Gestión
S.A.C.
11.306.984
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Corporación Andaman S.A.C.
400
Editing, publishing,
consignment, purchase and
sale, distribution, marketing,
import and export of all
types of written means of
communication
General Manager: Percy Luis Vigil Vidal
50.00%
Inversiones Bairiki S.A.C.
13.254.540
Development of real estate
projects
General Manager: Fernando Rodriguez Angobaldo
50.00%
Inmobiliaria Botafogo S.A.C.
35.672.357
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inmobiliaria Costa Nueva S.A.C.
46.882.895
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
86 Other Important Information
50.00%
Inmobiliaria Pisac S.A.C.
50.511.253
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inversiones Lendipo S.A.C.
7.594.892
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inmobiliaria Kotare S.A.C.
5.903.296
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inversiones Kandoo S.A.C.
48.321.455
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inmobiliaria Eburns S.A.C.
18.131.635
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inversiones Diamanda S.A.C.
14.279.723
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inmobiliaria Nueva Centuria
S.A.C.
613.058
Development of real estate
projects
General Manager: Administradora Panamericana S.A.C. 50.00%
Inmobiliaria San Silvestre S.A.
19.996.061
Development, construction and
lease of real estate projects
Directors: Eduardo Martín Herrera Vásquez
50.00%
(Chairman), José Luis Fernández Aqueveque, Lidia
Karín Torres Tataje, Rodrigo Arróspide Benavides, Pedro
José Sevilla Almeida,Eduardo Carlos Castro-Mendivil
Braschi; General Manager: Pedro José Sevilla Almeida
COLOMBIA (CAPITAL AMOUNT EXPRESSED IN COLOMBIAN PESOS)
NAME
CAPITAL
BUSINESS TYPE
BOARD AND SENIOR MANAGEMENT
DIRECT AND
INDIRECT
OWNERSHIP (%)
Inversiones Colombianas Arauco
S.A.
23.747.951.000
Management of assets,
corporate investments,
shopping malls, buildings,
properties, warehouses,
restaurants and activities
related to such activities;
in addition, the provision of
advisory services, whether
financial, administrative,
commercial, legal, consultancy,
accounting or auditing
Administrators: Diego Mauricio Bermúdez Farías,
Ignacio Morales; Junta Directiva - Miembros
Principales: Juan Antonio Álvarez Avendaño, Consuelo
Raby, Claudio Chamorro,Eduardo Pérez Marchant;
General Manager: Juan Pablo Romero Restrepo
100.00%
Inversiones Inmob. Arauco
Alameda S.A.
34.628.386.000 Development, construction and
lease of real estate projects
Administrators: Diego Mauricio Bermúdez Farías,
Ignacio Morales; Junta Directiva - Miembros
Principales: Juan Antonio Álvarez Avendaño, José
Domingo Eluchans Urenda, Guillermo Said Yarur,
Mauricio Martínez Agudelo, Jorge Andres Botero Soto;
General Manager: Juan Pablo Romero Restrepo
55.00%
Inversiones Inmob. Barranquilla
Arauco S.A.S.
22.145.296.000 Development, construction and
lease of real estate projects
Administrators: Diego Mauricio Bermúdez Farías,
100.00%
Ignacio Morales; Asamblea de Accionistas: Juan
Antonio Álvarez Avendaño, Claudio Chamorro, Duncan
Manuel Grob Urzua, Consuelo Raby, Eduardo Pérez
Marchant; General Manager:Juan Pablo Romero
Restrepo
Inmobiliaria La Colina Arauco
S.A.S.
39.291.745.000 Development, construction and
lease of real estate projects
Administrators:Diego Mauricio Bermúdez Farías,
Ignacio Morales; General Manager: Juan Pablo Romero
Restrepo
100.00%
Eje Construcciones S.A.S.
392.156.000
Development, construction and
lease of real estate projects
Administrators:Diego Mauricio Bermúdez Farías,
Ignacio Morales; Junta Directiva - Miembros
Principales: Juan Pablo Romero Restrepo, Diego
Mauricio Bermúdez Farías, Sergio Aparicio Pradilla,
José Farid Merheg Sabbagh, Ricardo Merheg Sabbagh;
General Manager: Juan Pablo Romero Restrep
55.00%
Inversiones Inmobiliarias
Bucaramanga Arauco S.A.S.
9.468.635.000
Development, construction and
lease of real estate projects
Administrators: Diego Mauricio Bermúdez Farías,
Ignacio Morales; General Manager: Juan Pablo Romero
Restrepo
100.00%
ARGENTINA (Cifra de Capital en Pesos Argentinos)
Parque Arauco Argentina S.A.
7.031
Construction and lease of
commercial space and other
real estate. Currently the
company does not conduct
business
Chairman: Eduardo Pérez Marchant, Vicepresidente:
Leonardo F. Fernández, Director: Fabián Cainzos
100.00%
Other Important Information 87
88 Other Important Information
ANNUAL REPORT
SIGNATURE PAGE
Pursuant to General Standards No. 30 of the Superintendencia
de Valores y Seguros , the undersigned declare acceptance of
their responsibility for the veracity of the information contained
in this report on December 31, 2014.
Sr. José Said Saffie
Chairman
Sr. Orlando Sáenz Rojas
Director
Sr. José Domingo Eluchans Urenda
Director
Sr. Guillermo Said Yarur
Director
Sr. Joaquín Brahm Barril
Director
Sr. Salvador Said Somavía
Director
Sra. Rosanna Gaio Cuevas
Director
Sr. Rafael Aldunate Valdés
Director
Sr. René Abumohor Touma
Director
Sr. Juan Antonio Álvarez Avendaño
Executive Vice President
Other Important Information 89
CONSOLIDATED
FINANCIAL
STATEMENTS
PARQUE ARAUCO S.A.
For the periods ending
December 31, 2014 and 2013
Santiago, Chile
KPMG Auditores Consultores Ltda.
Av. Isidora Goyenechea 3520, Piso 2
Las Condes, Santiago, Chile
Telephone
Fax
www.kpmg.cl
+56 (2) 2798 1000
+56 (2) 2798 1001
Independent Auditor’s Report
To the Shareholders and Directors
of Parque Arauco S.A.:
Report on the Consolidated Financial Statements
We have performed an audit of the attached financial statements of Parque Arauco S.A. and its subsidiaries that encompass
the status of the financial situation on December 31, 2014 and the corresponding comprehensive statements of results,
of changes in equity and cash flows for the year ended on that date and the corresponding Notes to the Consolidated
Financial Statements.
Responsibility of the Management for the Consolidated Financial Statements
The Management is responsible for the preparation and fair presentation of these Consolidated Financial Statements
according to the accounting standards set forth by the Superintendencia de Valores y Seguros (Superintendence of
Securities and Insurance) as described in Note 2.3 of the Consolidated Financial Statements. This responsibility includes
the design, implementation and keeping of pertinent internal controls for the preparation and fair presentation of the
Consolidated Financial Statements exempt from any significant incorrect representations, either due to fraud or error.
Responsibility of the Auditors
Our responsibility consists in expressing an opinion regarding these financial statements based on our audit. We have
not examined the financial statements for Inmobiliaria Mall Viña del Mar S.A., a jointly held company which appears in
the Consolidated Financial Statements under the equity method. It shows total assets of M$51,503,244 on December 31,
2014 and a net income (gain) of M$8,857,765 for the year ended on that date. The financial statements for that company
were examined by other auditors whose report was forwarded to us, and our opinion expressed herewith, with regard
to the amounts shown for Inmobiliaria Mall Viña del Mar S.A., is based solely on the report issued by those auditors.
We performed our audit in compliance with auditing standards generally accepted in Chile. Such standards require we
plan and perform our work so as to achieve a reasonable degree of certainty that the financial statements are free from
significant incorrect representations.
An audit consists of performing procedures to obtain audit evidence on the amounts disclosed in the consolidated financial
statements. The selected procedures depend on the judgment of the auditor, including the assessment of risks of significant
incorrect representations on the consolidated financial statements be it due to fraud or error. When performing these said
risk assessments, the auditor considers the pertinent internal control for the reasonable preparation and presentation of the
Consolidated Financial Statements of the entity, with the purpose of designing audit procedures that are appropriate for
the circumstances, but not with the purpose of expressing an opinion regarding the effectiveness of the entity’s internal
control. Consequently, we do not express any such opinion. An audit also includes assessing the appropriateness of the
accounting policies and the reasonability of the significant accounting estimations made by the Management, as well as
an assessment of the general presentation of the consolidated financial statements.
We consider that the audit evidence we have obtained and the report from the other auditors are sufficient and appropriate
to provide grounds for our audit opinion.
KPMG Auditores Consultores Ltda. is a Chilean limited liability company and member of the network of independent member firms of KPMG affiliated with KPMG International, a Swiss cooperative.
All rights reserved.
Opinion on the regulatory accounting basis
In our opinion, based on our audit and on the report by other auditors, the above mentioned Consolidated Financial
Statements present a fair reflection, in all their significant aspects, of the financial situation of Parque Arauco S.A. and
its subsidiaries on December 31, 2014 and of its operating results and cash flow statements for the year ended on that
date, as per the instructions and standards for the preparation and presentation of financial information issued by the
Superintendencia de Valores y Seguros (SVS) described in Note 2.3 of the Consolidated Financial Statements.
Accounting basis
As described in Note 2.3 of the Consolidated Financial Statements, by virtue of its attributions, the Superintendencia de
Valores y Seguros, on 17 October 2014, issued Directive Release No. 856, instructing auditees to record in the respective
financial year under Equity, the differences in assets and liabilities as deferred tax items resulting from the direct effect of
the increase in the first category tax rate introduced by Law No. 20.780. This changed the framework for the preparation
and presentation of financial information adopted to date, as the previous framework (IFRS) required comprehensive
and explicit adoption, without any reserves. On December 31, 2014 and for the financial year ended on that date, the
quantification of the change in the accounting framework is also described in Note 14 of the Consolidated Financial
Statements. Our opinion has not changed with respect to this matter.
Other matters
We have previously performed an audit as per the generally accepted auditing standards in Chile, for the Consolidated
Financial Statements as of December 31, 2013 of Parque Arauco S.A. and its associated subsidiaries, and in our report
dated February, 28 2014 we express our audit opinion without any modifications on the mentioned Consolidated Financial
Statements.
Cristián Maturana R.
Santiago, February 27 2015
KPMG Ltda.
CONTENTS
Consolidated Statements of Financial Position__________06
Consolidated Statements of Comprehensive Income_____08
Consolidated Statements of Changes in Equity __________10
Consolidated Cash Flow Statements __________________11
Notes to the Consolidated Financial Statements_________12
Rationale 2014______________________________________69
Summary of Financial Statements of Subsidiaries_______92
Parque Arauco S.A.
Registration under
Securities Register No. 403
Figures expressed in
thousands of Chilean Pesos M$
NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1 - General information___________________________ 12
NOTE 2 - Basis of presentation__________________________ 12
NOTE 3 - Significant accounting policies__________________ 17
NOTE 4 - Accounting policies___________________________23
NOTE 5 - Cash and cash equivalents_____________________23
NOTE 6 - Other current non-financial assets______________23
NOTE 7 - Trade and other accounts receivable, and
non-current rights receivable__________________24
NOTE 8 - Related parties_______________________________25
NOTE 9 - Current tax assets and liabilities________________27
NOTE 10 - Intangible assets other than capital gains________28
NOTE 11 - Capital gains________________________________29
NOTE 12 - Property, plant and equipment_________________30
NOTE 13 - Investment properties________________________ 31
NOTE 14 - Deferred tax________________________________32
NOTE 15 - Other financial liabilities______________________34
NOTE 16 - Other provisions____________________________ 40
NOTE 17 – Provisions for employee benefits______________ 44
NOTE 18 - Trade and other accounts payable_____________ 44
NOTE 19 - Other non-financial liabilities__________________45
NOTE 20 – Equity_____________________________________45
NOTE 21 - Earnings per share___________________________ 51
NOTE 22 - Ordinary income and costs____________________ 51
NOTE 23 - Employee benefits and expenses_______________52
NOTE 24 - Financial income and expenses________________52
NOTE 25 - Effect of foreign exchange rate variation_________53
NOTE 26 - Depreciation and amortization_________________53
NOTE 27 - Result of indexation units_____________________53
NOTE 28 - Other gains (losses)_________________________54
NOTE 29 - Foreign currency____________________________55
NOTE 30 - Summary of financial statements of main
subsidiaries_________________________________58
NOTE 31 - Operational divisions_________________________59
NOTE 32 - Operational leases__________________________ 60
NOTE 33 - Management of financial risks_________________ 61
NOTE 34 – Investments in associates accounted for using the
equity method_______________________________63
NOTE 35 - Assets and liabilities held for hedging___________65
NOTE 36 - Fair value measurement______________________67
NOTE 37 – Environment________________________________68
NOTE 38 – Sanctions__________________________________68
NOTE 39 - Post-balance sheet events____________________68
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE PERIODS ENDED
DECEMBER 31, 2014 AND 2013
NOTE
12.31.2014
M$
12.31.2013
M$
Cash and cash equivalents
5
110,061,086
68,945,796
Other non-financial assets, current
6
3,213,817
3,148,505
Trade and other accounts receivable, current
7
19,959,586
18,886,264
Accounts receivable from related parties, current
8
6,177,439
4,835,906
Tax assets, current
9
22,324,529
21,291,112
161,736,457
117,107,583
ASSETS
Current Assets
TOTAL CURRENT ASSETS
Other non-financial assets, non-current
6
31,711,183
26,457,899
Rights receivable, non-current
7
326,999
808,364
Accounts receivable from related parties, non-current
8
-
542,191
Investments accounted for using the equity method
34
53,585,634
49,634,386
Intangible assets other than capital gains
10
14,750,880
14,987,965
Capital gains
11
16,383,094
15,629,318
Property, plant and equipment
12
2,836,519
2,724,423
Investment properties
13
1,090,631,422
947,838,880
Deferred tax assets
14
41,795,417
26,224,767
1,252,021,148
1,084,848,193
1,413,757,605
1,201,955,776
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CONSOLIDATED FINANCIAL STATEMENTS
Non-current Assets
6
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE PERIODS ENDED
DECEMBER 31, 2014 AND 2013
NOTE
12.31.2014
M$
12.31.2013
M$
Other financial liabilities, current
15
52,055,207
35,725,785
Trade and other accounts payable, current
18
28,379,202
24,730,681
8
2,195,857
1,902,251
16
1,603,946
2,329,832
9
6,188,840
5,082,793
Provisions for employee benefits, current
17
3,511,827
2,369,008
Other non-financial liabilities, current
19
1,716,500
3,923,411
95,651,379
76,063,761
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable to related parties, current
Other provisions, current
Tax liabilities, current
TOTAL CURRENT LIABILITIES
Non-current liabilities
Other financial liabilities, non-current
15
421,273,192
405,652,105
Deferred tax liabilities
14
106,378,627
75,999,319
Other non-financial liabilities, non-current
19
10,327,322
8,933,603
537,979,141
490,585,027
633,630,520
566,648,788
Issued capital
336,925,246
233,643,412
Treasury stock
(3,736,839)
(3,736,839)
309,444,765
290,550,081
Share premium
200,964
-
Other reserves
(4,950,870)
(10,112,729)
637,883,266
510,343,925
142,243,819
124,963,063
780,127,085
635,306,988
1,413,757,605
1,201,955,776
TOTAL LIABILITIES, NON-CURRENT
TOTAL LIABILITIES
Retained earnings (accumulated losses)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY
Minority interest
TOTAL EQUITY
TOTAL LIABILITIES AND NET EQUITY
20
CONSOLIDATED FINANCIAL STATEMENTS
Equity
7
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE PERIODS ENDED
DECEMBER 31, 2014 AND 2013
ACCUMULATED
NOTE
01.01.2014
12.31.2014
M$
01.01.2013
12.31.2013
M$
Revenue from ordinary activities
22
125,886,312
107,318,830
Cost of sales
22
(28,606,149)
(22,307,202)
97,280,163
85,011,628
(15,315,325)
(13,336,635)
GROSS PROFIT
Administrative expenses
Other income (losses)
28
(1,460,204)
(6,393,858)
Financial income
24
4,605,580
3,983,554
Financial expenses
24
(25,825,240)
(19,150,007)
Share of gains (losses) of associates and joint-ventures that are
accounted for using the equity method
34
8,750,979
9,663,436
Foreign exchange differences
25
889,035
(279,889)
Income (loss) for indexed assets and liabilities
27
(13,095,652)
(5,129,628)
Gain (loss) from the difference between the previous book value
and the fair value of financial assets
13
16,707,834
4,459,032
72,537,170
58,827,633
(11,744,400)
(8,811,313)
60,792,770
50,016,320
57,749,400
55,280,589
3,043,370
(5,264,269)
60,792,770
50,016,320
PROFIT (LOSS), BEFORE TAX
Income tax
14
NET PROFIT (LOSS)
Net profit (loss) attributable to equity holders of the company
Net profit (loss) attributable to minority interest
NET PROFIT (LOSS)
Earnings per share
NET PROFIT (LOSS) PER BASIC SHARE
21
73,27
79,03
NET PROFIT (LOSS) PER DILUTED SHARE
21
71,10
77,56
CONSOLIDATED FINANCIAL STATEMENTS
Net Profit (Loss), attributable to
8
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE PERIODS ENDED
DECEMBER 31, 2014 AND 2013
ACCUMULATED
01.01.2014
12.31.2014
M$
01.01.2013
12.31.2013
M$
60,792,770
50,016,320
Gain (loss) from foreign exchange rate variations, before tax
5,595,301
1,004,440
OTHER COMPREHENSIVE INCOME, BEFORE TAX, FOREIGN EXCHANGE
RATE VARIATIONS
5,595,301
1,004,440
Gain (loss) from cash flow hedges, before tax
(2,749,857)
(551,088)
OTHER COMPREHENSIVE INCOME, BEFORE TAX, CASH FLOW HEDGES
(2,749,857)
(551,088)
2,845,444
453,352
Income tax related to cash flow hedges of other comprehensive income
577,470
110,218
INCOME TAX RELATED TO COMPONENTS OF OTHER COMPREHENSIVE
INCOME
577,470
110,218
3,422,914
563,570
64,215,684
50,579,890
Comprehensive income attributable to equity holders of the company
61,172,314
55,844,159
Comprehensive income attributable to minority interest
3,043,370
(5,264,269)
64,215,684
50,579,890
NET PROFIT (LOSS)
Other comprehensive income, before tax
Foreign exchange rate variations
Cash flow hedges
Other components of other comprehensive income, before tax
Other comprehensive income
TOTAL COMPREHENSIVE INCOME
Comprehensive income attributable to
TOTAL COMPREHENSIVE INCOME
CONSOLIDATED FINANCIAL STATEMENTS
Income tax related to other comprehensive income
9
CONSOLIDATED
STATEMENTS OF
CHANGES IN EQUITY
FOR THE PERIODS ENDED
DECEMBER 31, 2014 AND 2013
ISSUED
CAPITAL
M$
SHARE
PREMIUM
M$
OWN SHARES
HELD IN PORTFOLIO
M$
FOREIGN EXCHANGE
DIFFERENCE
RESERVES
M$
CASH FLOW
HEDGES RESERVES
M$
OTHER MISC.
RESERVES
M$
OTHER
RESERVES
M$
RETAINED EARNINGS EQUITY ATTRIBUTABLE
(ACCUMULATED
TO EQUITY HOLDERS
LOSSES)
OF COMPANY
M$
M$
233,643,412
-
(3,736,839)
(15,550,284)
110,483
5,327,072
(10,112,729)
290,550,081
Net profit (loss)
-
-
-
-
-
-
-
Other comprehensive income
-
-
-
5,595,301
(2,172,387)
-
Comprehensive income
-
-
-
-
-
103,500,000
200,964
-
-
-
-
-
(218,166)
-
103,281,834
MINORITY
INTEREST
M$
TOTAL
EQUITY
M$
510,343,925
124,963,063
635,306,988
57,749,400
57,749,400
3,043,370
60,792,770
3,422,914
-
3,422,914
-
3,422,914
-
-
-
61.172.314
3.043.370
64.215.684
-
-
-
-
103,700,964
-
103,700,964
-
-
-
-
(22,906,872)
(22,906,872)
-
(22,906,872)
-
-
-
1,738,945
1,738,945
(15,947,844)
(14,427,065)
14,237,386
(189,679)
200,964
-
5,595,301
(2,172,387)
1,738,945
5,161,859
18,894,684
127,539,341
17,280,756
144,820,097
336,925,246
200,964
(3,736,839)
(9,954,983)
(2,061,904)
7,066,017
(4,950,870)
309,444,765
637,883,266
142,243,819
780,127,085
ISSUED
CAPITAL
M$
SHARE
PREMIUM
M$
OWN SHARES
HELD IN PORTFOLIO
M$
FOREIGN EXCHANGE
DIFFERENCE
RESERVES
M$
CASH FLOW
HEDGES RESERVES
M$
OTHER MISC.
RESERVES
M$
OTHER
RESERVES
M$
RETAINED EARNINGS EQUITY ATTRIBUTABLE
(ACCUMULATED
TO EQUITY HOLDERS
LOSSES)
OF COMPANY
M$
M$
MINORITY
INTEREST
M$
TOTAL
EQUITY
M$
233,643,412
-
(3,736,839)
(16,554,724)
551,353
7,274,274
(8,729,097)
251,255,091
472,432,567
117,806,488
590,239,055
Net profit (loss)
-
-
-
-
-
-
-
55,280,589
55,280,589
(5,264,269)
50,016,320
Other comprehensive income
-
-
-
1,004,440
(440,870)
-
563,570
-
563,570
-
563,570
Comprehensive income
-
-
-
-
-
-
-
-
55,844,159
(5,264,269)
50,579,890
Dividends
-
-
-
-
-
-
-
(17,352,404)
(17,352,404)
-
(17,352,404)
Increase (decrease) from transfers and other changes
-
-
-
-
-
(1,947,202)
(1,947,202)
1,366,805
(580,397)
12,420,844
11,840,447
TOTAL CHANGES IN EQUITY
-
-
-
1,004,440
(440,870)
(1,947,202)
1,383,632
39,294,990
37,911,358
7,156,575
45,067,933
233,643,412
-
(3,736,839)
(15,550,284)
110,483
5,327,072
(10,112,729)
290,550,081
510,343,925
124,963,063
635,306,988
12.31.2014
Opening balance 01.01.2014
Comprehensive income
Issue of equity
Dividends
Increase (decrease) from transfers and other changes
TOTAL CHANGES IN EQUITY
CLOSING BALANCE CURRENT PERIOD 12.31.2014
12.31.2013
Opening balance 01.01.2013
CLOSING BALANCE PREVIOUS PERIOD 12.31.2013
CONSOLIDATED FINANCIAL STATEMENTS
Comprehensive income
10
CONSOLIDATED
STATEMENT OF
CASH FLOW
FOR THE PERIODS ENDED
DECEMBER 31, 2014 AND 2013
12.31.2014
M$
12.31.2013
M$
187,714,344
158,000,601
(78,680,028)
(53,435,311)
Payments to and on behalf of employees
(13,014,553)
(11,207,846)
Income tax reimbursed (paid)
(3,067,542)
(5,507,088)
Other inputs (outputs) in cash
(11,935,793)
(25,621,225)
81,016,428
62,229,131
(4,890,362)
(19,471,984)
(1,341,535)
(637,489)
Interests received
3,580,963
4,944,405
Purchases of property, plant and equipment
(807,381)
(910,576)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Cash from operating activities
Cash from the sale of goods and services
Payments
Payments to suppliers for goods and services
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net cash flows from (used in) investment activities
Cash flow used for acquiring subsidiaries or other businesses
Loans to related entities
Purchases of intangible assets
(2,143,757)
(778,120)
Proceeds from related entities
542,191
1,259,560
3,864,307
2,487,089
(115,772,550)
(127,350,099)
(2,184,032)
(3,398,232)
(119,152,156)
(143,855,446)
12.31.2014
M$
12.31.2013
M$
Proceeds from share issuance
118,656,236
13,708,542
Proceeds from long-term debt
90,798,328
177,874,969
1,203,894
1,344,527
92,002,222
179,219,496
Dividends received
Purchases of other long-term assets
Other inputs (outputs) in cash
NET CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES
Loans to related entities
TOTAL PROCEEDS FROM DEBTS
Proceeds from issuance of obligations with the public
Loan payments
Loan payments to related entities
13,329,456
-
(92,598,650)
(93,667,004)
-
(2,912,279)
Financial leasing payments
(2,921,880)
(1,853,610)
Dividends paid
(25,211,472)
(19,498,157)
(25,441,700)
(20,665,527)
(440,061)
(4,613,801)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
77,374,151
49,717,660
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE
THE EFFECT OF CHANGES IN EXCHANGE RATE
39,238,423
(31,908,655)
1,876,867
(2,927,838)
Interest paid
Other inputs (outputs) in cash
Effects of variation in the exchange rate on cash and cash equivalents
Effects of variation in the exchange rate on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT END OF PERIOD
41,115,290
(34,836,493)
68,945,796
103,782,289
110,061,086
68,945,796
CONSOLIDATED FINANCIAL STATEMENTS
Net cash flows from (used in) financing activities
11
NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
TO DECEMBER 31, 2014 AND 2013
NOTE 1
GENERAL INFORMATION
1.1 CORPORATE INFORMATION
Parque Arauco S.A. (or “the Company”) with ID number 94.627.0008, is a regional holding present in Chile, Peru and Colombia, which
operates the shopping centers it owns through its various companies.
The company’s main activity is the development of real estate projects
and the management of these properties through lease agreements with
different commercial operators of retail space.
• Statement of Changes in Equity for the periods ended on December
31, 2014 and 2013.
• Consolidated Statements of Cash Flow for the periods ended on
December 31, 2014 and 2013.
2.3 COMPLIANCE STATEMENT
NOTE 2
BASIS FOR PRESENTATION
2.1 CONSOLIDATED FINANCIAL STATEMENTS
The information included in these Consolidated Financial Statements
is the responsibility of the Board of Directors, who expressly declare
that the principles and criteria included in the International Financial
Reporting Standards “IFRS” have been fully implemented. In preparing
these Consolidated Financial Statements, the Company Management
has used certain estimates to quantify some of the assets, liabilities,
earnings, expenses and commitments that are registered therein.
2.2 PERIOD COVERED BY THE FINANCIAL STATEMENTS
These Consolidated Financial Statements cover the following periods:
• Consolidated Statement of Financial Position for the periods ended on
December 31, 2014 and 2013.
• Consolidated Statements of Comprehensive Income for the periods
ended on December 31, 2014 and 2013.
These Consolidated Financial Statements accurately reflect the financial
position of Parque Arauco S.A. and its subsidiaries on December 31,
2014 and 2013. They were approved by the Board of Directors during
a session held on February 27, 2015. These Consolidated Financial
Statements are shown in thousands of Chilean Pesos and have been
prepared based on the accounting records held by the Parent Company
and its subsidiaries. Each entity prepares its own Consolidated Financial
Statements following the principles and criteria valid for each country.
Therefore, the consolidation process includes the adjustments and
reclassifications necessary to ensure the consistency between the
principles and criteria in order to comply with the IFRS.
The Consolidated Financial Statements at December 31, 2014 and
for the financial year ended on that date, have been prepared as per
the International Financing Reporting Standards (IFRS), issued by the
International Accounting Standards Board (IASB), and instructions from
the Superintendencia de Valores y Seguros de Chile (SVS). On December
31, 2014, the only instruction from the SVS that is not included in the IFRS
refers to the specific recording of deferred tax established by Directive
Release (“OC”) No. 856 dated October 17, 2014.
As of December 31, 2013, the Statement of Financial Position, the
Statement of Changes in Net Equity, the Comprehensive Income
Statements and Cash Flow Statements have been prepared as per the
International Financing Reporting Standards (IFRS).
CONSOLIDATED FINANCIAL STATEMENTS
The Company’s headquarters are located in the city of Santiago, Chile,
at Avenida Presidente Kennedy No. 5413, Las Condes, Santiago. Parque
Arauco S.A. is a publicly traded corporation registered in the Securities
Register under No. 403, and therefore it is subject to the supervision
of the securities authority, Superintendencia de Valores y Seguros de
Chile (“SVS”).
12
NOTE 2 BASIS FOR PRESENTATION (CONTINUED)
2.4 ACCOUNTING PRONOUNCEMENTS EFFECTIVE AS OF
JANUARY 1, 2014 AND ONWARD:
On the date these Consolidated Financial Statements were issued, the IASB issued the following accounting pronouncements, however, their
application was not mandatory:
STANDARDS, INTERPRETATIONS AND AMENDMENTS
MANDATORY IMPLEMENTATION FOR:
IFRS 9 Financial Instruments
The final version was issued in July 2014. It modifies the classification and measurement
of financial assets and introduces a “more prospective” model for expected credit
losses for the accounting of impairments and a substantially reformed approach for the
accounting of hedging.
Annual periods starting on or after January 1,
2018. Early adoption permitted.
IFRS 14 Regulatory Deferred Accounts
Issued in January 2014, it is a provisional standard intended to improve the
comparability of financial information of entities involved in activities with regulated
prices.
Annual periods starting on or after January 1,
2016. Early adoption permitted.
IFRS 15 Income from Contracts with Clients
Issued in May 2014, it is a new standard applicable to all contracts with clients, except
leases, financial instruments and insurance contracts. The aim of this new standard is to
improve the inconsistencies and weaknesses of IAS 18 and provide a new model that will
make the comparability of companies from different industries and regions easier.
Annual periods starting on or after January 1,
2017. Early adoption permitted.
AMENDMENTS
IAS 19 Employee Benefits – Employee Contributions
Issued in November 2013. This amendment applies to employee contributions or third
parties to defined benefit plans.
Annual periods starting on or after July 1, 2014
(January 1, 2015). Early adoption permitted.
IFRS 11 Joint Arrangements
Issued in May 2014. This amendment applies to the acquisition of interest in a joint
operation that constitutes a business venture.
Annual periods starting on or after January 1,
2016. Early adoption permitted.
IAS 16 Property, Plant and Equipment- IAS 38 Intangible Assets
Issued in May 2014. In its amendments to IAS 16 and IAS 38 the IASB clarified that the
use of the methods based on the revenues to calculate the depreciation of an asset is not
adequate because the revenues generated by an activity that includes the use of an asset
generally reflect factors different from the economic benefits of the asset.
Annual periods starting on or after January 1,
2016. Early adoption permitted.
IFRS 10 Consolidated Financial Statements– IAS 28 Investments in Associates and Joint
Ventures
Issued in September 2014. These amendments tackle an inconsistency recognized in the
requirements of IFRS 10 and of IAS 28 in the treatment of the sale or contribution of assets
between an investor and associate or joint-ventures.
Annual periods starting on or after January 1,
2016. Early adoption permitted.
Issued in June 2014. These amendments establish that the accounting of fruit production
plants must be equal to Properties, plant and equipment because their operations are
similar to manufacturing operations.
Annual periods starting on or after January 1,
2016. Early adoption permitted.
IAS 27 Separate Financial Statements
Issued in August 2014. This amendment restores the option of using the equity method
for the accounting of investments in subsidiaries, joint-ventures and associates in separate
financial statements.
Annual periods starting on or after January 1,
2016. Early adoption permitted.
The group is evaluating the impact that the aforementioned regulations will have on the date of their effective application. The Management
considers that the remaining Standards, Interpretations and Amendments pending application will not have a significant impact on the
Consolidated Financial Statements of Parque Arauco S.A.
The regulations, applicable as of January 1, 2014, have been adopted and they have had no material effects.
CONSOLIDATED FINANCIAL STATEMENTS
IAS 41 Agriculture – IAS 16 Property, Plant and Equipment
13
NOTE 2 BASIS FOR PRESENTATION (CONTINUED)
2.5 BASIS OF MEASUREMENT
These Consolidated Financial Statements have been drafted based on the
historical cost basis, with the exception of the following items included
in the Statement of Financial Position.
• Derivative financial instruments are measured at their fair value.
• Financial instruments designated at fair value through profit or loss
are measured in the same way.
• Investment properties and intangible assets are measured at their
fair value.
• Available-for-sale financial assets are measured at their fair value.
the subsidiaries from the date of acquisition, which is the date on which
Parque Arauco S.A. gained direct or indirect control. The consolidation of
the subsidiaries continues up to the date on which control by the parent
company ceases. The amounts and impacts of the transactions carried
out between the consolidated companies have been removed and the
share of the non-controlling interest in profit or loss and net assets has
been recognized and presented separately as Net Gain (Loss) Attributable
to Minority Interest in the Consolidated Statement of Financial Position,
separate from the Equity account of Parque Arauco S.A.
The financial statements of the subsidiaries were prepared on the same
date as the Parent Company and uniform accounting policies have been
applied, taking into account the specific nature of each line of business.
The summary of financial statements of the main subsidiaries are
specified in Note 30.
2.6 BASIS FOR CONSOLIDATION
The subsidiaries are consolidated by applying the linear method, by grouping
similar items of assets, liabilities, equity, income and expenditures of
PERCENTAGE SHARE
12.31.2013
COMPANY NAME
FUNCTIONAL
COUNTRY CURRENCY
DIRECT
INDIRECT
TOTAL
TOTAL
76.013.218-7
Inversiones Parque Arauco Uno S.A.
Chile
Chilean Peso
99.00%
1.00%
100.00%
100.00%
76.018.468-3
Inversiones Parque Arauco Dos S.A.
Chile
Chilean Peso
99.00%
1.00%
100.00%
100.00%
76.111.950-8
Desarrollos Inmobiliarios San Antonio
Chile
S.A.
Chilean Peso
51.00%
0.00%
51.00%
51.00%
76.187.012-2
Centros Comerciales Vecinales
Arauco Express S.A.
Chile
Chilean Peso
51.00%
0.00%
51.00%
51.00%
76.189.464-1
Nueva Arauco S.p.A.
Chile
Chilean Peso
100.00%
0.00%
100.00%
100.00%
76.203.146-1
Constructora y Administradora
Express S.A. (1)
Chile
Chilean Peso
0.00%
100.00%
100.00%
100.00%
76.263.221-7
Centro Comercial Arauco Express
Ciudad Empresarial S.A.(5)
Chile
Chilean Peso
0.00%
80.00%
80.00%
80.00%
76.930.350-2
Parque Arauco Colombia S.A.(6)
Chile
Dollar
0.00%
0.00%
0.00%
100.00%
86.339.000-1
Plaza Estación S.A.
Chile
Chilean Peso
0.00%
100.00%
100.00%
100.00%
89.276.800-5
Comercial Arauco Ltda.
Chile
Chilean Peso
95.00%
5.00%
100.00%
100.00%
96.547.010-7
Inmobiliaria Paseo de la Estación S.A.
Chile
Chilean Peso
83.00%
0.00%
83.00%
83.00%
96.660.610-K
Constructora y Administradora Uno
S.A.
Chile
Chilean Peso
100.00%
0.00%
100.00%
100.00%
96.671.020-9
Todo Arauco S.A.
Chile
Chilean Peso
99.99%
0.00%
99.99%
99.99%
96.734.110-K
Plaza El Roble S.A.
Chile
Chilean Peso
100.00%
0.00%
100.00%
100.00%
96.828.400-2
Parque Arauco Internacional S.A. (4)
Chile
Dollar
100.00%
0.00%
100.00%
100.00%
30-69117251-8
Parque Arauco Argentina S.A.
Argentine
Argentina
Peso
0.00%
100.00%
100.00%
100.00%
20345681460
Altek Trading S.A.C.(2)
Peru
Peruvian
Nuevo Sol
0.00%
33.50%
33.50%
33.50%
20381471374
Inmobiliaria San Silvestre S.A. (12)
Peru
Peruvian
Nuevo Sol
-
50.00%
50.00%
50.00%
20392709518
Inmobiliaria Colomera S.A.C. (7)
Peru
Peruvian
Nuevo Sol
-
49.00%
49.00%
49.00%
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2014
ID. NO.
14
NOTE 2 BASIS FOR PRESENTATION (CONTINUED)
2.5 BASIS OF MEASUREMENT (CONTINUED)
ID. NO.
COMPANY NAME
20423264617
Inmuebles Panamericana S.A. (3)
Peru
20492155501
Inversiones Villa el Salvador S.A.C.
Peru
20492911918
Inversiones Alameda Sur S.A.C.
Peru
20505590849
Administradora Panamericana S.A.C.
Peru
20511910642
Inmuebles Comerciales del Peru
S.A.C.
Peru
20512076379
Fashion Center S.A.
Peru
20513494824
Gerencia de Centros Comerciales
S.A.C.
Peru
20513549823
Parque El Golf S.A.C. (9)
Peru
20513561106
Soc. de Inversiones y Gestión S.A.C.
Peru
20514833088
Inmobiliaria Nueva Centuria S.A.C.
(11)
Peru
20519159253
Corporación Andaman S.A.C.
Peru
20523173716
Parque Lambramani S.A.C. (10)
Peru
20524082374
Inversiones Bairiki S.A.C.
Peru
20524688418
Inversiones Vilna S.A.C. (13)
Peru
20538494233
Inmobiliaria Botafogo S.A.C.
Peru
20538494748
Inmobiliaria Costa Nueva S.A.C.
Peru
20543099881
Inmobiliaria Pisac S.A.C.
Peru
20543100138
Inversiones Lendipo S.A.C.
Peru
20543346218
Inmobiliaria Kotare S.A.C.
Peru
20543349403
Inversiones Kandoo S.A.C.
Peru
20550880041
Strip Centers del Peru S.A.C. (8)
Peru
900.079.790-5
Eje Construcciones S.A.S.
Colombia
900.197.303-7
900.252.139-0
900.309.813-4
Inversiones Colombianas Arauco
S.A.S.
Inversiones Inmob. Arauco Alameda
S.A.S
Inversiones Inmob. Barranquilla
Arauco S.A.S.
Colombia
Colombia
Colombia
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Peruvian
Nuevo Sol
Colombian
Peso
Colombian
Peso
Colombian
Peso
Colombian
Peso
Colombian
Peso
Colombian
Colombia
Peso
DIRECT
12.31.2014
INDIRECT
TOTAL
12.31.2013
TOTAL
0.00%
50.00%
50.00%
50.00%
0.00%
49.50%
49.50%
49.50%
0.00%
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
0.00%
100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
100.00%
0.00%
50.00%
50.00%
50.00%
0.00%
100.00%
100.00%
100.00%
0.00%
50.00%
50.00%
50.00%
-
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
0.00%
100.00%
100.00%
100.00%
0.00%
50.00%
50.00%
50.00%
0.00%
100.00%
100.00%
99.99%
0.00%
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
0.00%
50.00%
50.00%
50.00%
-
51.00%
51.00%
51.00%
49.00%
6.00%
55.00%
55.00%
0.00%
100.00%
100.00%
100.00%
0.00%
55.00%
55.00%
55.00%
0.00%
100.00%
100.00%
100.00%
900.362.722-7
Inmobiliaria La Colina Arauco S.A.S. Colombia
0.00%
55.00%
55.00%
55.00%
900.460.297-8
Inversiones Inmobiliarias
Bucaramanga Arauco S.A.S.
0.00%
55.00%
55.00%
55.00%
CONSOLIDATED FINANCIAL STATEMENTS
PERCENTAGE SHARE
FUNCTIONAL
COUNTRY CURRENCY
15
NOTE 2 BASIS FOR PRESENTATION (CONTINUED)
2.5 BASIS OF MEASUREMENT (CONTINUED)
(2) The firm Sociedad Inmuebles Panamericana S.A. direct subsidiary
of Inmuebles Comerciales del Peru S.A.C. owns 65% of the
shareholding capital of Altex Trading S.A.C. Inmuebles Comerciales
del Peru therefore consolidated the Financial Statements of this
indirect subsidiary.
(3) The firm Sociedad Inmuebles Comerciales del Peru S.A.C., subsidiary
of Parque Arauco S.A., owns 45% of the shareholding capital of
Inmuebles Panamericana S.A. As of December 7, 2006 Inmuebles
Comerciales del Peru S.A.C. took over the control of that company
through the signing of an agreement between the company and
Holding Plaza S.A., which has enabled it to appoint the majority of
the Company’s Board of Directors and thus consolidate the Financial
Statements of this subsidiary.
(4) On August 19, 2014 the minutes of the Extraordinary Shareholders
Meeting of Parque Arauco Peru S.A. were recorded in a notary deed
by which the change of name to Parque Arauco Internacional S.A.
was officially materialized.
(5) On January 18, 2013, Centros Comerciales Vecinales Arauco Express
S.A., subsidiary of Parque Arauco S.A., purchased 1,824 shares of
the firm Centro Comercial Arauco Express Ciudad Empresarial S.A.
equivalent to 80% of the property for a total of M$1,825. On January
31, 2013, the Company carried out a capital increase subscribing
Centros Comerciales Vecinales Arauco Express S.A., subsidiary of
Parque Arauco S.A., for the total amount of M$1,653,729 keeping
its percentage share.
(6) On June 30, 2014, the minutes of the Extraordinary Shareholders
Meeting of Parque Arauco Colombia S.A. were recorded in a notary
deed by which it was agreed to approve the merger of that company
with Parque Arauco Peru S.A., (now Parque Arauco Internacional
S.A.) who took it over, adding the entire assets and liabilities of the
former to its equity, having accounting effects as of June 30, 2014.
(7) On March 3, 2013, 98% of the shares of the Company Inmobiliaria
Colomera S.A.C., assigned to real estate projects in the city of
Huaraz, were acquired by capitalizing accounts receivable for
S/. 20,000. The remaining 2% is owned by Holding Plaza S.A. e
Inmuebles Comerciales del Peru S.A.C. However, the Company
controls the latter company as per a shareholders’ agreement
(JGA Colomera). Likewise, on May 9, 2013, the Company made a
monetary contribution to its subsidiary Inmobiliaria Colomera S.A.C.
for the total amount of S/.80,000,000, whereby it owns 99.60%
of the shares. The remaining 0.40% is owned by Holding Plaza
S.A. and Inmuebles Comerciales del Peru S.A.C. (JGA Colomera).
(8) As of May 2013, the company Inmuebles Comerciales del Peru
S.A.C., subsidiary of Parque Arauco S.A., consolidated the company
Strip Centers del Peru S.A., which was constituted by agreement
with the company Los Portales S.A. to develop the Strip Centers
business in Peru. The parties agreed to an initial investment of USDM
30,000, and in April 2013 the operation of the business unit Centro
Comercial Lima Outlet Center began. Inmuebles Comerciales del
Peru S.A.C. holds 51% of the shares representing the capital stock.
(9) In November 2013, the subsidiary Inmuebles Comerciales del Peru
S.A.C. acquired the remaining 23.6% of the company Parque El Golf
S.A.C., whereby the Company currently holds an indirect interest
of 100% in that company.
(10) In December 2013, the subsidiary Inmuebles Comerciales del
Peru S.A.C. acquired the remaining 40% of the company Parque
Lambramani S.A.C., whereby currently, the Company indirectly
holds 100% of the latter.
(11) In August 2013, the subsidiary Inmuebles Comerciales del Peru
S.A.C. capitalized S/. 612,000 of accounts receivable owed by its
subsidiary Inmobiliaria Nueva Centuria S.A.C., assigned to the La
Union project, giving it a 50% interest in the company. Therefore
currently, the Company indirectly holds 50% of the latter.
(12) On December 27, 2013, the subsidiary Inmuebles Comerciales
del Peru S.A.C., acquired the shares of the company Inmobiliaria
San Silvestre S.A, assigned to the development of Proyecto El Golf
keeping a 50% interest. Therefore currently, the Company indirectly
holds 50% of the latter.
(13) In March 2014, the subsidiary Inmuebles Comerciales del Peru
S.A.C. acquired 400 shares from the company Inversiones Vilna
S.A.C., keeping an interest of 100%. Therefore currently, the Company
indirectly holds 100% of the latter
(14) In November 2013, the subsidiary Inmuebles Comerciales del
Peru S.A.C. acquired the remaining 23.6% shares of the company
Parque El Golf S.A.C., whereby currently, the Company indirectly
holds 100% of the latter.
2.7 JUDGMENTS, ESTIMATES AND SIGNIFICANT ACCOUNTING
ASSUMPTIONS
Estimates and Assumptions
In the preparation of the Consolidated Financial Statements as per IFRS,
the Management of Parque Arauco S.A. has carried out estimations
based on hypotheses that refer mainly to:
Impairment: The Management determines whether non-current assets
have been impaired at each reporting closure. This requires an estimate
of the value-in-use of cash-generating units to which capital gains are
assigned. To calculate the value-in-use, the Management must estimate
the expected future cash flows of the cash-generating unit. It must also
determine an appropriate discount rate in order to calculate the present
value of the mentioned cash flows.
CONSOLIDATED FINANCIAL STATEMENTS
(1) In December 2014, 100% of the shares of Constructora y Administradora
Express S.A. were acquired by Centros Comerciales Vecinales Arauco
Express S.A., who took it over, including the total amount of assets
and liabilities of the first to its own equity.
16
NOTE 2 BASIS FOR PRESENTATION (CONTINUED)
2.7 JUDGMENTS, ESTIMATES AND SIGNIFICANT ACCOUNTING
ASSUMPTIONS (CONTINUED)
Deferred tax: Deferred tax is recognized for all unused tax losses, to the
extent that there is a probability that there will be taxable net income
available for use.
Provisions: The Company constitutes provisions when it has an obligation
as a result of a past event, if it is likely that it will have to dispose of
resources and if in addition its amount can be reliably estimated. In this
way, at the closing of each financial year, the Company presents provisions
for legal processes, reimbursements and other miscellaneous provisions.
Fair value of Investment Properties: The Management determines
the fair value of investment properties annually. This requires that the
Management carries out an estimate of expected future cash flows
from the cash-generating-unit and, additionally, that it determines an
appropriate discount rate to calculate the present value of those cash
flows (see Note 3.2 ).
The estimates and assumptions used by the Company are based on
historical experience, changes in the industry and information provided
by qualified external sources. However, the final results could differ from
the estimates under certain conditions.
2.8 FUNCTIONAL CURRENCY
Parque Arauco S.A. has determined that the functional currency is the
Chilean Peso, as it is the currency used in the main economic environment
in which the Company operates.
Each subsidiary within the Company determined its own functional
currency and the items included in their financial statements are controlled
using that Functional Currency.
CURRENCY
12.31.2014
$
12.31.2013
$
24,627.10
606.75
207.27
0.26
71.73
23,309.56
524.61
190.15
0.27
83.98
UF
Dollar
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
2.9 PRESENTATION CURRENCY
The Consolidated Financial Statements of Parque Arauco S.A. and its
subsidiaries are presented in Chilean pesos, in accordance with IAS 21
Effects of Changes in Foreign Exchange Rates. Assets and liabilities of
operations outside Chile, capital gains and fair value adjustments that
arise from acquisitions are converted into pesos at the exchange rate
valid on the date of the balance sheet. Revenues and expenses from
foreign operations are converted into pesos at the average exchange rate.
2.10 FOREIGN CURRENCY
Foreign Currency Transactions
Transactions carried out in a currency different from the Company’s
functional currency are considered foreign currency transactions and are
accounted for in the Company’s functional currency at the exchange rate
prevailing on the date of the transaction. At the closing of each period
the balance of monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rate of the functional currency
to that date. Exchange differences arising from such an assessment are
recorded under “Foreign exchange differences” in the Income Statement
for the period in which they occur, except for the exchange differences
resulting from the valuation of investments in companies (equity of
subsidiaries) with a different functional currency, which are recorded
in the exchange reserves line under Equity in the Consolidated Financial
Statements. Non-monetary assets and liabilities that are valued at fair
value in a foreign currency, are converted to the functional currency
at the exchange rate on the date when the fair value was determined.
The non-monetary items that are valued at historical cost in a foreign
currency are not converted.
Indexation Units
Transactions in indexation units are recorded under the indexation unit
for the date on which the transaction complies with the requirements
for its initial recognition. At the closing date of each period, assets and
liabilities denominated in indexation units are translated at the exchange
rate of the adjustment unit and the resulting differences are recorded
under Indexation Units in the Income Statement.
NOTE 3
SIGNIFICANT ACCOUNTING POLICIES
3.1 FINANCING COSTS
Financing costs include all interest paid and accrued, exchange rate or
indexation differences and other costs of obligations with banks and
financial institutions and obligations with the public. These are recorded
as financing costs as incurred, except when these costs are directly
attributable to the construction of investment properties, in which case
they should be capitalized and included as part of the cost of such assets.
3.2 INVESTMENT PROPERTIES
Investment properties include land, buildings, real estate projects
underway and other construction projects that are kept for the purpose
of being leased or to obtain a betterment in their sale as a consequence
of the increases in their respective market prices that could occur in the
future (see Note 13 number 2).
Investment properties are initially recognized at their acquisition cost,
which mainly includes their purchase price and any directly attributable
disbursement. After the initial valuation, Parque Arauco S.A. decided
to value its investment properties at their fair value, which reflects the
prevailing market conditions at the date of the Statement of Financial
Position. At the closing date the Management annually calculates the
variations in this value, according to the discounted cash flow model.
The profits or losses resulting from the variations in the fair value of the
investment properties are included in the Income Statement for the year
when they take place.
CONSOLIDATED FINANCIAL STATEMENTS
Useful life of assets: Intangible assets and property, plant and equipment
require estimates for the period of useful life and residual value.
17
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.2 INVESTMENT PROPERTIES (CONTINUED)
The Company has decided to value its real estate projects underway
at the cost of the land plus all the disbursements necessary for their
development and construction.
6.- The rate of the debt is calculated based on the 30-year treasury bond,
the country risk spread and a debt spread based on market conditions.
3.2.2 Investment Plan
During the execution-of-works period, the asset is not revalued and
only the costs of execution and financial costs are capitalized, provided
that the asset qualifies for it and that those costs have accrued before
the asset is in operating conditions. When the asset begins operating
it is recorded at fair value. Any difference between the fair value of the
property at that date and its previous book value is recorded in the Income
Statement under Gain (Loss) arising from the difference between the
previous book value and the fair value of the assets. Investment properties
are derecognized after their disposal or when the investment property is
permanently withdrawn from use and no future financial profit is expected
as a result of its disposal. Any gain or loss incurred when withdrawing or
disposing of an investment property is recorded in the Income Statement
for the period when the withdrawal or disposal took place. The transfer
of investment properties can only be carried out when there has been
a change in use resulting from the start of their development by Parque
Arauco S.A. or its subsidiaries, or if development begins with the intention
of selling the investment properties. In the case of transferring from
Investment properties to Properties, plant and equipment, the cost of
the property considered for later accounting purposes is its fair value
on the date when the change took place.
The fair value measurement of investment properties results from the
profit and loss forecasts. The values of income are based on the fixed
and variable values of the lease contracts and, on the other hand, the
costs are based on the payment agreements and other contracts in force
entered into by the Company.
3.2.1 Discount Rate Determination
The discount rate is reviewed annually and determined based on the
following criteria:
1.- Determination of BETA; Given that the Chilean market is neither large
or active enough for a proper determination of BETA, BETA values for
construction companies and shopping center management companies
in South America have been used.
The Company develops an annual detailed investment plan to calculate
the maintenance, repair and expansion of each one of the investment
properties. This amount is included in the annual budget and approved
by the Board of Directors The amounts are transferred to the discounted
cash flow as Investment Properties Capex. Maintenance expenses are
considered part of the operating expenses for each property, in so far
as they allow each property to maintain its flows.
3.2.3 Forecasted Income Statement
For the projection of flows of each investment property the official
budget previously approved by the directory with its respective EBITDA
is used. This EBITDA is used as a starting value for the following year’s
discounted cash flow.
3.2.4 Growth Rate of Revenues
The growth rate of income depends on each investment property. In
Chile its increase is estimated to be between 0% and 6% per annum,
while in Peru and Colombia it is estimated to be between 1% and 10 %.
Revenue growth rate is directly related to the terms and conditions or
life cycle state of the shopping center. This variable is therefore reviewed
and approved annually.
3.2.5 Costs Growth Rate
In general, costs grow at a slower rate than revenues. This happens because
there are fixed costs that do not increase when revenues increase. In
addition, this happens because there are operational efficiency policies
that make it possible to control the main operational costs. Finally,
many costs are not directly indexed to inflation, while revenues are
directly indexed to inflation. The growth rates of the costs fluctuate in
Chile between -1% and 3 %; while those of Peru and Colombia fluctuate
between 0% and 7%. These rates are reviewed and approved annually.
3.- Risk premium; This data is generated locally by the Management based
on what has been published annually by market information systems.
4.- Leverage ratio; The ratio of leverage has been set, for the purposes
of the model, at 45% - 55%, between debt and equity financing.
Considering the level of exposure, the cost of capital is calculated using
the CAPM formula.
5.- Tax rate; The applicable tax rate of the period when the flows will
be discounted must be added in order to obtain the discount rate
before and after taxes.
The rate of growth or decrease of the EBITDA is a result of the effects
generated by the rate of growth of revenues and costs. For its revenue
forecasts, the Company uses the existing long-term contracts. There
are fixed and variable components depending on the level of sales of
the tenant, the most important being fixed income imitating the risks
affecting the revenue forecast.
Based on the aforementioned variables, EBITDA is estimated and
revenues and costs are forecasted in order to obtain an estimated EBIDTA.
Subsequently, asset Capex maintenance, taxes and changes in working
capital are discounted, and a perpetual growth rate is applied as of the
tenth year. The EBITDA used in the first year always corresponds to that
approved by the Board of Directors in its budget.
CONSOLIDATED FINANCIAL STATEMENTS
3.2.6 EBITDA Growth Rate
2.- Risk-free rate; This data is updated annually and is based on the
risk-free rate of the US 30-year Treasury bond, with the addition of
a country risk spread for Chile, Peru and Colombia.
18
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.3 INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE
EQUITY METHOD
Interests in Associates and Joint-ventures in which the Company has a
significant influence are recorded following the equity method.
The equity method is calculated by recording the Company’s interest
in terms of the share it holds of the Associate’s total equity in the
Statement of Financial Position, after adjusting the effect, if any, of
the transactions carried out with the Company, plus net gains that
have been generated through purchase of the corporation. If the
resulting amount is negative, the interest is recorded as zero in the
Statement of Financial Position, unless there is the commitment by
the Company to restore the Company’s financial situation, in which
case the corresponding provision is recorded.
The dividends received from these companies are recorded by reducing
the share value and the results obtained, which correspond to the
Company in accordance to its share, are recorded under the item “Share
of gains (losses) of associates and joint-ventures that are accounted for
using the equity method”.
3.4 MERGERS AND ACQUISITIONS AND CAPITAL GAINS (GOODWILL)
Mergers and acquisitions are accounted for using the acquisition method.
This involves the recognition of identifiable assets (including intangible
assets not previously recognized) and liabilities (including contingent
liabilities and excluding future restructuring) of the business acquired
measured at fair value. Goodwill corresponds to the excess between the
cost of a joint-venture and the interest of the acquiring company in the
net fair value of the assets, liabilities and identifiable contingent liabilities
of the entities acquired on the date of incorporation.
Goodwill is assigned by the Management of Parque Arauco S.A. to the
different cash-generating-units (hereinafter CGUs), that expect to be
benefitted by the synergies of the merger or acquisition, regardless of other
assets or liabilities of the acquired entity that are assigned to those units
or groups of units. After the initial recognition, goodwill is not amortized,
but it is reviewed annually to determine if there is any impairment, or
more frequently if there are any events or changes in circumstances that
indicate that the book value could be impaired, as per IFRS 3. If the excess
is negative, the amount of goodwill or the gain achieved in the transaction
is immediately recognized in the income statement.
3.5 INTANGIBLE ASSETS
Correspond to disbursements made for software licenses and other
intangibles arising from mergers and acquisitions, such as rights,
commercial agreements and brands. Parque Arauco S.A. and its
subsidiaries initially value these assets at their purchase cost. The cost
of intangible assets purchased in mergers and acquisitions is its fair
value on the date of purchase.
The gains or losses that could arise when an intangible asset is derecognized
is measured as the difference between net income from sales and the
asset’s book value and is recorded in the financial statement when the
asset is derecognized. The useful life of intangible assets is considered
to be either finite or indefinite.
3.5.1 Intangible Assets with a Finite Useful Life:
These intangible assets are amortized through the linear method during
their estimated useful life. Their impairment is evaluated whenever
there are indicators that the intangible assets could be impaired. After
their initial recognition they are recorded at cost minus any accrued
amortization and any accrued impairment loss. The amortization period
and the depreciation method are reviewed at least once at the closing
of each financial year.
The expected changes in the life or the expected pattern of consumption
of future economic benefits attached to the asset are treated as
changes in accounting estimates. The amortization charge in each
year is recorded in the income statement for that year, unless another
accounting standard allows or requires that the amount be included
in the cost value of another asset. The useful life for intangible assets
corresponds to:
RANGE (MONTHS)
USEFUL LIFE
Useful life of software licenses
Useful life of commercial contracts and
relations with clients
0 - 36
60 - 300
3.5.2 Intangible assets with an indefinite useful life:
These intangible assets are not subject to amortization. Impairment is
tested annually, either individually or at the level of the cash-generatingunit. The Company reviews the useful life of its intangible assets with
an indefinite useful life on an annual basis to determine if the indefinite
life assessment is still sustainable. If it is not, the useful life assessment
changes from indefinite to definite on a prospective basis. The brands
Mega Plaza, Mall Plaza El Roble and Buenaventura Premium Outlets,
identified in their respective merger or acquisition are classified under
this category.
3.6 PROPERTIES, PLANT AND EQUIPMENT
Properties, plant and equipment are recorded at their purchase price, net
of accumulated depreciation and of their possible impairment losses.
The Company uses the linear depreciation method, depreciating assets
under Properties, plant and equipment from the moment the assets are
in condition to be used, spreading the cost of assets on a linear basis
throughout the estimated years of useful life. The estimated residual
value and amortization periods are reviewed at the close of every financial
year. The cost includes those expenditures that are directly attributable
to the purchase of the asset.
CONSOLIDATED FINANCIAL STATEMENTS
Considering that Parque Arauco S.A. has adopted as its policy the
application of fair value to its investment properties, the effects of any
impairment on these assets form part of the fair value adjustments and
are collected in the valuation model for these investment properties.
19
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.6 PROPERTIES, PLANT AND EQUIPMENT (CONTINUED)
RANGE (YEARS)
USEFUL LIFE
Useful life of buildings
Useful life of plant and equipment
60 - 80
5 - 10
Useful life of information technology
equipment
4-6
Useful life of fixed installations and
accessories
7 - 10
Useful life of motor vehicles
5 - 10
3.7 ASSET IMPAIRMENT
3.7.1 Impairment of financial assets
To determine the need to make an adjustment due to impairment of
financial assets, the following procedure must be carried out:
- In the case of receivables of commercial origin, Parque Arauco S.A. and
its subsidiaries have defined a policy for recording impairment provisions
based on the age of the past-due balance. This is not applied in those
cases when a particular issue requires a specific collectability analysis.
- In the case of receivables with a financial origin, impairment need is
determined through a specific case by case analysis. At the date of
these Consolidated Financial Statements there are no significant pastdue financial assets that are not of commercial origin.
3.7.2 Impairment of non-financial assets
The Company regularly evaluates if there are any indications that an
asset could be impaired. If there are any indications, or when there is an
annual requirement of impairment testing for an asset, Parque Arauco
S.A. and its subsidiaries perform an estimate of the recoverable amount
of the asset. The recoverable amount of an asset is the greater between
the fair value of an asset or cash-generating-unit minus the sale cost
and its value-in-use, which is determined for an individual asset unless
the asset does not generate cash that is clearly independent from the
other assets or groups of assets.
When an asset’s book value is greater than its recoverable amount, the
asset is considered to be impaired. It is recorded under the item Other
Profits and Losses, as applicable.
3.8 FINANCIAL INSTRUMENTS
3.8.1 Current financial assets
The Company determines the classification of its investments at the
moment of initial recognition and reviews it at the closing of each financial
year. This classification depends on the purpose for which the investments
were acquired, which could be: financial assets designated at fair value
through profit or loss; loans and accounts receivable; investments held
until maturity and available-for-sale assets. Financial assets are initially
recorded at their fair value. In the case of financial instruments that are
not held for trading, the initial valuation must also include the transaction
costs that are directly attributable to them.
The Company classifies its financial assets under the following categories:
a) Financial assets designated at fair value through profit or loss
This category includes financial assets purchased for trading or sale
in the short-term and financial assets that on initial recognition are
designated at fair value through profit or loss if the Company manages
such investments and makes purchase and sales decisions based on fair
value measurements according to risk management policies or investment
strategies. During initial recognition, the costs of attributable transactions
are recorded in the income statement. Financial assets designated at
fair value through profit or loss are valued at their fair value and any
changes are recorded in the income statement.
b) Investments held until maturity
These are non-derivative financial assets or determinable payments
and fixed maturities for which the Company has the intention and
proven financial capability of holding until their maturity. Financial
assets held until maturity are initially recognized at their fair value
plus any directly attributable transaction costs. After their initial
recognition, the financial assets held until maturity are valued at their
amortized cost using the effective interest method minus impairment
losses. Any sale or reclassification of a more than significant amount
of held-to-maturity investments not close to maturity would result
in the classification of all held-to-maturity investments as availablefor-sale and would prevent the Company from classifying investment
instruments as held-to-maturity for the current and following two
financial years. On December 31, 2014 the Company did not own any
held-to- maturity investments.
c) Accounts receivable and other loans
These are non-derivative financial instruments with fixed or determinable
payments that are not quoted in an active market. These receivables have
been generated by Parque Arauco S.A. and its subsidiaries by providing
goods and services directly to a debtor with no intention of trading the
receivable. The Company has classified under this category the lease
debtors, promissory notes receivable and miscellaneous debtors.
CONSOLIDATED FINANCIAL STATEMENTS
The cost of an asset built by the entity itself includes the cost of material
and direct labor, as well as any other cost directly attributable to the
process of preparing the asset for intended use. The costs of dismantling
and removing items and restoring the area where they are located are
also included. Estimated useful life is shown on the following table:
20
Further to the initial recognition, loans and receivables were valuated
at their amortized cost and the accrued income was recorded in the
income statement based on their effective interest rate. Amortized
cost is understood as the initial cost minus payments or capital
amortizations, taking into account potential reductions due to impairment
or uncollectability. These are recorded as profit or loss in the period when
they are generated. With regard to lease debtors, notes receivables and
miscellaneous debtors, an impairment provision is established when
there is objective evidence (such as the probability of insolvency or the
debtor’s significant financial difficulties) that Parque Arauco S.A. and its
subsidiaries will not be able to collect the amounts due under the terms
of the contract. The book value of these receivables is reduced through
the use of a provision. Impaired debts are considered bad debts when
they are valued as unrecoverable.
Parque Arauco S.A. and its subsidiaries evaluate at each closing date if
a financial asset or group of financial assets is impaired. On December
31, 2014 the Company held no available-for-sale financial assets.
Policy for bad-debt provision over past-due debt for Trade Receivables:
3.8.3 Derivative and hedging financial instruments
PAST-DUE
DAYS
0 to 90
91 to
120
121 to
150
151 to
180
Over
180
%
0%
40%
60%
80%
100%
Provisions for bad debt are shown net of collateral put up by clients.
Credit policy
The Company Parque Arauco S.A. only accepts payments in cash on the
due date of all the services it provides and sells, 15 days after invoicing.
Any financing requests or payment condition different from the above
must be authorized by the Management.
Interest rate for Receivables:
UF
FROM
TO
TO 90
> 90
0
200
1.06%
1.33%
201
5,000
1.06%
1.33%
5,001
Greater
0.73%
0.91%
d) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets
designated as available-for-sale and that are not classified under any
of the previous three categories.
Interest earned or paid on investments is recorded as income or interest
expense using the effective interest rate. Earned dividends are recorded
in the income statement as dividends received when the right of payment
has been established. Following the initial recognition, available-forsale financial assets are measured at fair value and unrealized gains or
losses are recorded directly as Other reserves, under Equity. When the
investment is disposed of, the cumulative gain or loss previously recorded
under Equity is transferred to the Statement of Comprehensive Income.
All credits, bank loans and bonds issued to the public are initially
recorded at the fair value of the payment received minus the directly
attributable transaction costs. Following the initial recognition, credit
that accrues interest is measured at amortized cost using the effective
interest rate method.
Gains or losses are recorded in the income statement when liabilities
are derecognized through the amortization process.
All derivative financial instruments are initially recorded at fair value on
the date when the derivatives contract was signed and they are later
re-measured at fair value. Derivatives are recorded as Other Financial
Liabilities when the fair value is negative. Any gain or loss resulting from
changes in fair value of derivative instruments during the financial year
and that do not qualify for hedging accounting is recorded directly in
the Consolidated Statement of Comprehensive Income.
a) Hedging derivatives
Parque Arauco S.A. holds hedging derivatives to cover the risks associated
to fluctuations in interest rates and exchange rates. The Company’s aim
with regard to the holding of these derivatives is to minimize risks by
using the most effective method to eliminate or reduce the impact of
these exposures.
Derivative instruments are initially recorded at their fair value, which is
determined based on market values.
The effective portion of the gain or loss of the hedging instrument is
directly recorded under Equity until the expected or committed hedged
transaction takes place, as is the case when the hedged financial expense
is recorded. At that moment it is reclassified to the profit and loss account,
while any ineffective portion is immediately recognized in the Statement
of Comprehensive Income.
3.9 FAIR VALUE
Fair value is defined as the price at which an asset can be exchanged or
a liability can be paid between well-informed and interested parties who
act willingly. In fair value the expected transaction costs for the signing
or disposing of the financial instrument are not considered.
In the concept of fair value there is the underlying assumption that the
entity is a fully functional company and that there is no intention or need
to liquidate the instruments or carry out a transaction under unfavorable
conditions. Therefore, fair value is not the amount that an entity would
receive or pay in a forced transaction, in an involuntary liquidation or in
a sale due to financial difficulties.
CONSOLIDATED FINANCIAL STATEMENTS
OUTSTANDING
3.8.2 Non-derivative financial liabilities
21
3.10 CASH AND CASH EQUIVALENTS
3.11 OPERATING LEASES
Operating leases are those where not all the risks and benefits associated
with the ownership of an asset are transferred or substantially accepted.
The direct initial costs incurred in the negotiation of an operating lease
are added to the book value of the leased asset and recognized during
the term of the lease on the same basis as the income generated by the
asset. When Parque Arauco S.A. and its subsidiaries act as tenants, the
obligation paid or accrued must be recorded as an expense during the
period in which it was incurred. The associated financial expenses must
be recorded separately.
3.12 REVENUE RECOGNITION
Revenues from operations correspond to turnover from minimum lease
contracts, percentage-based leases, basic services and others which
were provided at the closing of each period. Revenues are recognized
on a linear basis to the extent that it is possible to foresee the economic
benefits for the Company and when they can be measured in a reliable
way. They represent the amounts receivable for goods and services
provided minus discounts and tax on sales and services.
The following specific recognition criteria must also be fulfilled before
recognizing revenues:
Revenues from leases: Corresponds to the lease of physical space and
the operational lease of investment properties. They are recognized
based on the duration of the contract and the agreed prices.
Interest income: Income is recognized as interest is accrued (using the
effective interest rate method).
Dividends: Income is recognized when the Company’s right to receive
payment has been established.
Deferred income: This item includes lease premiums from tenants that
are amortized during the term of the contract, as well as reserve lease
invoices issued to tenants.
3.13 INCOME TAX AND DEFERRED TAX
Income tax
At the closing of each period, the Company has recognized its tax
liabilities based on its taxable income, which is determined as per the
standards established in the Income Tax Legislation.
The tax rates and laws used to calculate the taxable amounts are those
enacted at the closing date of the Statement of Financial Position.
On 29 September 2014 Law 20.780 was published, which among other
points raised the first category income tax rate from 20% to 21%.
Deferred tax
The effects of deferred tax due to differences between the Statement of
Financial Position and the Tax Balance are recorded for all the temporary
differences, considering the tax rates that will be valid on the estimated
date of reversal. Temporary differences can be taxable temporary
differences, which are those that would give rise to higher tax payments
in the future. In general they represent the recognition of a deferred tax
liability, or deductible temporary differences, which are those that result
in a lower tax payment in the future.
Deferred tax assets and deferred tax liabilities are offset if there is a
legally enforceable right to offset tax assets against tax liabilities and
if the deferred tax is related to the same tax entity and tax authority.
In accordance with the provisions of Directive Release N° 856 by the
SVS, issued on October 17, 2014, the differences in deferred tax assets
and liabilities resulting from the progressive increase in the capital gains
tax rate introduced by Law 20.780, dated September 29, 2014, which
affect the Company and its subsidiaries, have been recorded directly
under Equity (cumulative gain or loss) (see Note 14).
3.14 PROVISIONS
The Company holds a payment policy based on actions described in
Note 20 iv.
3.15 FINANCIAL INFORMATION BY SEGMENT
An operational segment is a component of the Company that participates
in business activities that could generate income or incur in expenses,
including income and expenses that are related to transactions with other
members of the Company. The operating results of an operational segment
are regularly reviewed by the Management to adopt decisions regarding
the resources that will be assigned to the segment and to evaluate its
performance, on which there is discreet financial information available.
The segment results that are reported to the CEO and Board of Directors
include items that are directly attributable to a segment, as well as those
that can be assigned on a reasonable basis. Non-assigned items consist
mainly of corporate assets (basically the Company’s headquarters),
main office expenses and tax assets and liabilities.
3.16 SHARE CAPITAL REPURCHASES (TREASURY SHARES)
When the corporate share capital recognized as equity is repurchased, the
buy-back amount, including the directly attributable costs net of any tax
effect, is accounted for as a deduction from equity. Repurchased shares
are classified as treasury shares and recorded as a deduction from total
equity. When treasury shares are sold or subsequently transferred, the
amount received is recognized as an increase in equity and the resulting
gain or loss from the transaction is transferred to accumulated gain or loss.
CONSOLIDATED FINANCIAL STATEMENTS
Cash equivalents are considered as short-term investments made as
part of the normal cash management strategy and that can be quickly
converted into known cash amounts, with an upcoming maturity of
three months or less as of the purchase date, and with minimum risk
of significant loss of value. As per the above, the Company considers
as cash and cash equivalents term deposits, mutual funds and financial
instruments purchased under repurchase agreements, among others.
22
3.17 EARNINGS PER SHARE
Below is the detail of cash and cash equivalents per currency:
12.31.2014
M$
12.31.2013
M$
CLP
33,343,128
23,268,624
USD
51,463,883
15,159,348
Peruvian Nuevo Sol
21,969,660
24,844,857
3,284,328
5,672,889
87
78
110,061,086
68,945,796
Colombian Peso
3.18 DIVIDENDS
Argentine Peso
The dividends policy consists in distributing at least 30% of every financial
year’s net profits. To this effect, the Distributable Net Profit excludes the
following earnings from the Parent Company’s net income determined
for that financial year:
a) Unrealized earnings corresponding to changes in the fair value of
Investment Properties. The main adjustments to the fair value of
Investments Properties correspond to a revaluation based on future
cash flows. The valuation of these assets is regulated by accounting
standard IAS No. 40 “Investment Properties”. These earnings are
returned to Net Profits when the assets are sold or if they are disposed
of in another way.
TOTAL
On December 31, 2014 the Company presented no cash and cash equivalents
restrictions.
NOTE 6
OTHER NON-FINANCIAL ASSETS
On December 31, 2014 and 2013 the details of Other Non-Financial
Assets were the following:
b) The effects of the deferred taxes derived from adjustments associated
to the concepts specified in the above point.
NOTE 4
ITEMS
ACCOUNTING POLICIES, CHANGES
IN ACCOUNTING ESTIMATES
The Financial Statements on December 31, 2014 do not show any changes
in the accounting policies and estimates with respect to the Financial
Statements on December 31, 2013.
NOTE 5
CASH AND CASH EQUIVALENTS
Below is the detail of cash and cash equivalents as of December 31,
2014 and 2013:
12.31.2014
M$
12.31.2013
M$
50,773
57,955
Balance in banks
13,864,509
7,571,106
Current deposits
33,613,770
23,620,176
Other cash and cash equivalents (a)
62,532,034
37,696,559
CASH AND CASH EQUIVALENTS
110,061,086
68,945,796
a) On December 31, 2014 and 2013 the item Other Cash and Cash Equivalents
corresponds to mutual funds M$ 62,532,034 and M$ 37,696,559, respectively.
NON-CURRENT
M$
M$
12.31.2013
12.31.2014
12.31.2013
Land leases E.F.E
(1)
429,272
Down payments
projects Chile
-
-
Down payments
projects
Colombia
-
- 5,525,374 6,309,344
Down payments
projects Peru
-
Other assets
Mall insurance
Cash on hand
12.31.2014
CURRENT
OTHER NONFINANCIAL
ASSETS
406,306 9,443,986 9,345,043
3,615,616 2,074,632
479,251 6,994,648
2,778,706 2,262,948
5,839
-
7,957,347
6,131,559
771,533
-
-
3,213,817 3,148,505 31,711,183 26,457,899
(1) On December 31, 2014 the balance of future pre-paid income to the firm
Empresa Ferrocarriles del Estado totals UF400,910. This amount is amortized on a
linear basis until its maturity in December 2037.
CONSOLIDATED FINANCIAL STATEMENTS
The Company reports earnings per basic and diluted shares. Earnings
per basic share are calculated by dividing earnings attributable to the
Company’s ordinary shareholders by the weighted average of ordinary
shares in circulation during the financial year, adjusted by the own shares
held. Diluted earnings are calculated by adjusting them to the Company’s
ordinary shareholders by the weighted average of ordinary shares in
circulation during the financial year, adjusted by the own shares held,
for all shares that could be potentially diluted. These include convertible
notes and share purchase options granted to employees.
23
NOTE 7
COMMERCIAL DEBTORS AND OTHER CURRENT ACCOUNTS
RECEIVABLE AND NON-CURRENT RIGHTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE
(impairment). Notes receivable are installments through which collateral
deposits are paid as previously agreed by a tenant in accordance with valid
lease contract clauses, net of the provision for bad debt (impairment).
This item includes invoices receivable corresponding to leases of
premises and commercial space, maintenance services and other, net
of the provision for bad debts (impairment).
MISCELLANEOUS RECEIVABLES
The Company and its subsidiaries do not hold a securitized portfolio.
NOTES RECEIVABLE
This item includes other receivables from reimbursable contributions to
Chilectra S.A.; Aguas Cordillera S.A.; Aguas Andina S.A. and staff current
accounts, net of the provision for bad debt (impairment).
This item includes current checks, bills of exchange and promissory
notes receivable from tenants, corresponding to payments of invoices for
lease and provision of premises and other, net of provision for bad debt
On December 31, 2014 and 2013 the details for trade receivables and
other current accounts receivables and non-current rights receivable
were the following:
12.31.2014
12.31.2013
GROSS PROVISION FOR
VALUE
BAD DEBTS
M$
M$
Trade accounts receivable
Notes receivable
Miscellaneous receivables
TRADE AND OTHER
ACCOUNTS RECEIVABLES
NET
VALUE
M$
GROSS PROVISION FOR
VALUE
BAD DEBTS
M$
M$
19,769,964
(1,541,156)
18,228,808
18,356,124
(1,314,230)
17,041,894
2,143,538
(1,268,232)
875,306
1,437,795
(728,323)
709,472
855,472
-
855,472
1,134,898
-
1,134,898
22,768,974
(2,809,388)
19,959,586
20,928,817
(2,042,553)
18,886,264
12.31.2014
12.31.2013
GROSS PROVISION FOR
VALUE
BAD DEBTS
M$
M$
NON-CURRENT
NET
VALUE
M$
NET
VALUE
M$
GROSS PROVISION FOR
VALUE
BAD DEBTS
M$
M$
NET
VALUE
M$
Other accounts receivable
326,999
-
326,999
808,364
-
808,364
RIGHTS RECEIVABLE
326,999
-
326,999
808,364
-
808,364
12.31.2014
Number of
clients
Trade
accounts
receivable M$
12.31.2013
Number of
clients
Trade
accounts
receivable M$
OUTSTANDING
31-60
61-90
91-120
121-150
151-180
> 180
TOTAL M$
2,150
559
270
181
125
105
386
3,776
15,664,073
1,255,045
397,420
240,365
152,943
117,596
1,942,522
19,769,964
OUTSTANDING
31-60
61-90
91-120
121-150
151-180
> 180
TOTAL M$
2,394
460
264
173
118
122
426
3,957
13,685,488
2,079,126
751,837
390,085
160,165
247,054
1,042,369
18,356,124
On December 31, 2014 and 2013 debt write-offs totaled M$ 208,328 and M$ 871,967, respectively.
CONSOLIDATED FINANCIAL STATEMENTS
CURRENT
24
NOTE 8
RELATED PARTIES
Transactions with other group entities that are related parties will be
disclosed in the financial statements of the entity. Transactions between
the Company and its subsidiaries include normal operations in terms
of their purpose and are carried out under market conditions. These
transactions have been eliminated in the consolidation process and are
not detailed in this Note.
A) ACCOUNTS RECEIVABLE WITH RELATED COMPANIES
On December 31, 2014 and 2013, accounts receivable between related parties were as follows:
PENDING BALANCE M$
NATURE OF
RELATIONSHIP
NAME
COUNTRY
87.869.700-6
Inmob. Kennedy Vespucio Ltda.
Chile
CLP
365 days
Ord. shares
76.837.210-1
N Y K S.A.
Chile
CLP
5 years
96.570.360-8
Inversiones Doña Olga
Chile
CLP
98.863.570-0
Inmobiliaria Mall Viña del Mar S.A.
Chile
0-E
Inmobiliaria Castell S.A.C.
0-E
12.31.2014
12.31.2013
CURRENT
12.31.2014
12.31.2013
NON-CURRENT
517
418
-
-
Other related parties
-
-
-
49,637
5 years
Other related parties
-
-
-
492,554
CLP
30 days
Associates
4,292
4,076
-
-
Peru
PEN
365 days
Ord. shares
1,034,395
602,253
-
-
Inmobiliaria Castell S.A.C.
Peru
USD
365 days
Ord. shares
3,390,215
2,964,420
-
-
20514833088
Inmobiliaria Nueva Centuria S.A.C.
Peru
USD
365 days
Ord. shares
1,520,571
1,222,706
-
-
20514833088
Inmobiliaria Nueva Centuria S.A.C.
Peru
PEN
365 days
Ord. shares
56,579
15,450
-
-
0-E
Inmobiliaria Eburns S.A.C
Peru
USD
365 days
Ord. shares
-
6,745
-
-
0-E
Inmobiliaria Eburns S.A.C
Peru
PEN
365 days
Ord. shares
-
6,345
-
-
0-E
Inmobiliaria Puerto Pizarro S.A.C
Peru
PEN
365 days
Ord. shares
26,628
7,671
-
-
0-E
Inmobiliaria Puerto Pizarro S.A.C
Peru
USD
365 days
Ord. shares
4,146
-
-
-
20392709518
Inmobiliaria Colomera S.A.C.
Peru
PEN
365 days
Ord. shares
-
5,822
-
-
0-E
Inversiones Termasia S.A.C
Peru
PEN
365 days
Ord. shares
7,036
-
-
-
0-E
Inversiones Termasia S.A.C
Peru
USD
365 days
Ord. shares
302
-
-
0-E
Inversiones Lambore S.A.C
Peru
PEN
365 days
Ord. shares
7,031
-
-
0-E
Inversiones Lambore S.A.C
Peru
USD
365 days
Ord. shares
302
-
-
0-E
Integramedica Peru S.A.C
Peru
PEN
30 days
Ord. shares
125,425
-
-
-
6,177,439
4,835,906
-
542,191
TOTAL RELATED COMPANIES
-
On December 31, 2014 and 2013, the Company did not record impairments from accounts receivable with related parties. This evaluation is carried out at the closing of each financial year through the
review of the financial position of the related parties and of the market in which they operate.
On December 31, 2014 and 2013, the Company did not hold any received or delivered collateral with related parties.
CONSOLIDATED FINANCIAL STATEMENTS
ID. NO.
TERM OF THE
CURRENCY TRANSACTION
PENDING BALANCE M$
25
B) ACCOUNTS PAYABLE WITH RELATED COMPANIES
On December 31, 2014 and 2013, accounts payable with related companies were the following:
PENDING BALANCE M$
NATURE OF THE
RELATIONSHIP
12.31.2014
PENDING BALANCE M$
12.31.2013
12.31.2014
12.31.2013
ID. NO.
NAME
COUNTRY
TERM OF THE
CURRENCY TRANSACTION
0-E
Los Portales S.A
Peru
PEN
365 days
Other related parties
-
20.344
-
-
0-E
Holding Plaza S.A
Peru
PEN
180 days
Other related parties
2,195,857
1.881.907
-
-
2,195,857
1,902,251
-
-
CURRENT
TOTAL RELATED COMPANIES
NON-CURRENT
Other Related Parties corresponds to companies that either directly or indirectly are shareholders participating in companies for the development of common projects.
C) TRANSACTIONS WITH RELATED PARTIES
On December 31, 2014 and 2013, transactions with related parties were the following:
12.31.2013
AMOUNT
M$
EFFECT ON
INCOME
(CHARGE)/
CREDIT
AMOUNT
M$
EFFECT ON
INCOME
(CHARGE)/
CREDIT
COMPANY
ID. NO.
NATURE OF THE
RELATIONSHIP
DESCRIPTION
OF THE
TRANSACTION
Banco BBVA
97.032.000-8
Comm. Direc.
Term dep.
203,597,065
-
203,949,908
-
Banco BBVA
97.032.000-8
Comm. Direc.
Red. term dep.
203,597,065
245,337
193,371,834
1,125,401
Banco BBVA
97.032.000-8
Comm. Direc.
Leases
221,470
186,109
152,670
128,294
Banco BBVA
97.032.000-8
Comm. Direc.
Services
105,779
88,890
56,179
47,209
Inmobiliaria Mall Viña del Mar S.A
96.863.570-0
Comm. Direc.
Leases
43,284
36,373
-
-
Comercial Café Mokka S.A.
88.665.600-9
Comm. Direc.
Leases
139,014
116,818
123,998
104,200
Comercial Café Mokka S.A.
88.665.600-9
Comm. Direc.
Purch. products
7,771
(6,530)
8,497
(7,140)
Comercial Café Mokka S.A.
88.665.600-9
Comm. Direc.
Services
63,259
53,159
62,668
52,662
Comercial Los Andes S.A.
96.632.770-7
Ord. shares
Leases
55,188
46,376
52,960
44,504
Comercial Los Andes S.A.
96.632.770-7
Ord. shares
Services
25,291
21,253
24,793
20,834
Embotelladora Andina S.A.
91.144.000-8
Comm. Direc.
Leases
183,465
154,172
173,125
145,483
Embotelladora Andina S.A.
91.144.000-8
Comm. Direc.
Purch. products
5,343
(4,490)
10,192
(8,565)
Entretenimientos Cosmic S.A.
96.929.240-8
Comm. Direc.
Leases
123,388
103,687
118,217
99,342
Entretenimientos Cosmic S.A.
96.929.240-8
Comm. Direc.
Services
85,517
71,863
83,893
70,498
Isapre Cruz Blanca
96.501.450-0
Comm. Direc.
Pay suppliers
64,261
(64,261)
59,415
(59,415)
Soluciones Integrales S.A.
78.556.290-9
Comm. Direc.
Services
11,977
(10,065)
12,046
(10,123)
Transactions with related parties are carried out at market prices.
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2014
26
D) COMPENSATION RECEIVED BY KEY MANAGEMENT STAFF,
SPECIFIED BY CATEGORY
The total compensation received by the Company’s main executives
on December 31, 2014 and 2013 total M$4,291,433 and M$ 3,565,147,
respectively. Of these totals, approximately 18% correspond to variable
compensation in 2014 and 15% in 2013. During the years ended on
December 31, 2014 and 2013, expenditures in severance pay to executives
totaled M$39,336 and M$76,243, respectively. Main executives are
considered Corporate Managers, Division Managers, Area Managers
and Area Deputy Managers and Center Manager.
12.31.2014
M$
12.31.2013
M$
4,291,433
3,565,147
759,506
530,804
39,336
76,243
Total compensation paid
Variable income paid
Severance paid
Compensation and allowances for the Board of Directors totaled M$344,228
and M$316,064, respectively on December 31, 2014 and 2013.
The Board of Directors on December 31, 2014 consisted of the following
members:
DIRECTORS:
Guillermo Said Yarur
José Domingo Eluchans Urenda
Orlando Sáenz Rojas
Rafael Aldunate Valdés
René Abumohor Touma
Salvador Said Somavía
Rosanna Gaio Cuevas
Joaquín Brahm Barril
CHAIRMAN OF THE BOARD OF DIRECTORS:
EXECUTIVE VICE PRESIDENT:
José Said Saffie
Juan Antonio Álvarez
NOTE 9
CURRENT TAX ASSETS AND LIABILITIES
Remaining VAT and tax benefit and GST (Peru)
12.31.2014
M$
12.31.2013
M$
19,037,118
14,095,819
117,681
2,576,103
3,169,730
4,619,190
22,324,529
21,291,112
Provisional payments
Other tax
CURRENT TAX ASSETS
The details of Current Tax Liabilities on December 31, 2014 and 2013,
were the following:
12.31.2014
M$
12.31.2013
M$
Income tax payables
3,574,314
1,396,862
Other tax (1)
2,614,526
3,685,931
CURRENT TAX LIABILITIES
6,188,840
5,082,793
(1) Other taxes payable include obligations for tax debt (VAT) and other monthly retentions.
CONSOLIDATED FINANCIAL STATEMENTS
The details of Current Tax Assets on December 31, 2014 and 2013,
were the following:
27
NOTE 10
INTANGIBLE ASSETS OTHER THAN CAPITAL GAINS
a) The details of Intangible Assets on December 31, 2014 and 2013, were the following::
GROSS BALANCE
M$
ACCUMULATED
AMORTIZATION
M$
ITEMS
NET BALANCE GROSS BALANCE
ACCUMULATED
AMORTIZATION
12.31.2014
NET BALANCE
12.31.2013
Patents, brands and other rights (1)
6,853,415
(1,202,189)
5,651,226
6,433,157
(1,127,848)
5,305,309
Software programs
3,718,910
(2,054,775)
1,664,135
2,602,831
(1,739,659)
863,172
Other identified intangible assets (2)
14,600,314
(7,164,795)
7,435,519
14,095,937
(5,276,453)
8,819,484
INTANGIBLE ASSETS
25,172,639
(10,421,759)
14,750,880
23,131,925
(8,143,960)
14,987,965
(1) Intangible Assets with an indefinite useful life correspond mainly to brands and on December 31, 2014 their book value totaled M$2,414,768.
(2) Corresponds mainly to anchor Contracts, Contracts with Minor Stores and Relationship with Clients, generated by the acquisition of businesses.
b) The details of Intangible Assets on December 31, 2014 and 2013, were the following:
PURCHASES
OTHER IDENTIFIED
INTANGIBLE PATENTS, BRANDS
ASSETS AND OTHER RIGHTS
M$
M$
PATENTS, BRANDS
AND OTHER RIGHTS
M$
SOFTWARE
PROGRAMS
M$
2,432,499
863,172
360,492
243,215
1,252,187
Amortization (1)
(156,422)
Foreign currency
OPENING BALANCE ON 01.01.2014
Additions
OTHER IDENTIFIED
INTANGIBLE
ASSETS
2,872,810
-
M$
14,987,965
698,712
23,404
-
-
2,217,518
(425,299)
(880,495)
-
-
(1,411,504)
(2,873,720)
187.383
17,950
(1,418)
131,616
-
127,559
463,090
-
(43,875)
73,816
(83,279)
-
9,365
(43,973)
274,176
800,963
(109,385)
71,741
-
(1,274,580)
(237,085)
2,706,675
1,664,135
251,107
2,944,551
-
7,184,412
14,750,880
SOFTWARE
PROGRAMS
M$
OTHER IDENTIFIED
INTANGIBLE
ASSETS
TOTAL
M$
Other
TOTAL CHANGES
CLOSING BALANCE ON 12.31.2014
PURCHASES
12.31.2013
OPENING BALANCE ON 01.01.2013
TOTAL
M$
SOFTWARE
PROGRAMS
M$
PATENTS, BRANDS
AND OTHER RIGHTS
M$
JOINT-VENTURES
SOFTWARE OTHER IDENTIFIED PATENTS, BRANDS
PROGRAMS INTANGIBLE ASSETS AND OTHER RIGHTS
M$
M$
M$
2,521,003
668,668
135,229
2,936,832
-
9,996,068
16,257,800
15,785
510,587
254,033
-
-
-
780,405
Amortization (1)
(99,950)
(339,204)
(22,909)
(58,054)
-
(1,683,331)
(2,203,448)
Foreign currency
(11,916)
(3,414)
(6,192)
(5,968)
-
(5,887)
(33,377)
7,577
26,535
331
-
-
152,142
186,585
(88,504)
194,504
225,263
(64,022)
-
(1,537,076)
(1,269,835)
2,432,499
863,172
360,492
2,872,810
-
8,458,992
14,987,965
Additions
Other
TOTAL CHANGES
CLOSING BALANCE ON 12.31.2013
(1) Amortization is recorded in the income statement under Administrative expenses.
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2014
JOINT-VENTURES
28
NOTE 11
CAPITAL GAINS
Capital gains (goodwill) were generated through the acquisition of shares of the companies shown in the table below on
December 31, 2014 and 2013:
12.31.2014
M$
12.31.2013
M$
Parque Arauco Peru S.A.
9,098,424
8,395,309
76.930.350-2
Parque Arauco Colombia S.A.
6,443,505
6,392,844
96.863.570-0
Inmob. Mall Viña del Mar S.A.
841,165
841,165
16,383,094
15,629,318
ID. NO.
COMPANY
96.828.400-2
TOTALS
OPENING BALANCE
01.01.2014
M$
CHANGES
IN PERIOD
M$
EXCHANGE RATE
DIFFERENCES
M$
CLOSING BALANCE
12.31.2014
M$
ID. NO.
COMPANY
20423264617
Inmuebles Panamericana S.A.
926,038
-
76,218
1,002,256
20511910642
Inmuebles Comerciales del Peru S.A.C.
163,468
-
25,595
189,063
20345681460
Altek Trading S.A.C.
880,801
-
72,494
953,295
20381471374
Inmob. San Silvestre S.A.
1,378,045
-
113,420
1,491,465
20523173716
Parque Lambramani S.A.C.
539,274
-
44,385
583,659
20513549823
Parque El Golf S.A.C.
4,507,683
-
371,003
4,878,686
76.960.350-2
Invers. Inmob. Barraquilla Arauco S.A.S.
6,392,844
-
50,661
6,443,505
96.863.570-0
Inmob. Mall Viña del Mar S.A.
841,165
-
-
841,165
15,629,318
-
753,776
16,383,094
OPENING BALANCE
01.01.2013
M$
CHANGES
IN PERIOD
M$
EXCHANGE RATE
DIFFERENCES
M$
CLOSING BALANCE
12.31.2013
M$
TOTALS
ID. NO.
COMPANY
20423264617
Inmuebles Panamericana S.A.
929,252
-
(3,214)
926,038
20511910642
Inmuebles Comerciales del Peru S.A.C.
149,586
-
13,882
163,468
20345681460
Altek Trading S.A.C.
1,043,787
(154,165)
(8,821)
880,801
20381471374
Inmob. San Silvestre S.A.
-
1,264,530
113,515
1,378,045
20523173716
Parque Lambramani S.A.C.
-
494,852
44,422
539,274
20513549823
Parque El Golf S.A.C.
-
4,136,342
371,341
4,507,683
76.960.350-2
Invers. Inmob. Barraquilla Arauco S.A.S.
-
5,826,814
566,030
6,392,844
96.863.570-0
Inmob. Mall Viña del Mar S.A.
841,165
-
-
841,165
2,963,790
11,568,373
1,097,155
15,629,318
TOTALS
The main capital gains during the period were from increases in shares.
CONSOLIDATED FINANCIAL STATEMENTS
On December 31, 2014 and 2013 changes in Capital gains were as follows:
29
NOTE 12
PROPERTY, PLANT AND EQUIPMENT
The balances for property, plant and equipment on December 31, 2014 and 2013, were the following:
GROSS
BALANCE
M$
ITEMS
ACCUMULATED
DEPRECIATION
M$
NET
BALANCE
M$
GROSS
BALANCE
M$
12.31.2014
Buildings
Plant and equipment
ACCUMULATED
DEPRECIATION
M$
NET
BALANCE
M$
12.31.2013
274,536
(52,167)
222,369
269,624
(43,724)
225,900
1,199,303
(1,000,261)
199,042
1,199,794
(919,442)
280,352
Information technology equipment
1,125,011
(567,659)
557,352
919,097
(438,421)
480,676
Fixed installations and accessories
1,727,935
(761,943)
965,992
1,454,214
(499,965)
954,249
76,122
(65,030)
11,092
72,577
(51,945)
20,632
Motor vehicles
Other properties, plant and equipment
PROPERTIES, PLANT AND EQUIPMENT
1,831,337
(950,665)
880,672
1,479,853
(717,239)
762,614
6,234,244
(3,397,725)
2,836,519
5,395,159
(2,670,736)
2,724,423
The following tables show the changes in Properties, plant and equipment on December 31, 2014 and 2013, respectively:
OPENING BALANCE (01/01/2014)
Additions
Withdrawals
Depreciation expense (1)
Inc. (Dec.) in Foreign Exchange rate
Other increases (decreases)
TOTAL CHANGES IN PROPERTY,
PLANT AND EQUIP.
PROPERTIES, PLANT AND
EQUIPMENT (12/31/2014)
MS
OPENING BALANCE (01/01/2013)
Additions
Depreciation expense (1)
Inc. (Dec.) in Foreign Exchange rate
Other increases (decreases)
TOTAL CHANGES IN PROPERTY, PLANT AND
EQUIP.
PROPERTIES, PLANT AND EQUIPMENT
(12/31/2013)
GROSS
BALANCE
GROSS
BALANCE
PLANT AND
EQUIPMENT
ACCUMULATED
DEPRECIATION NET BALANCE
INFORMATION
TECHNOLOGY EQUIPMENT
GROSS
ACCUMULATED
BALANCE
DEPRECIATION NET BALANCE
FIXED INSTALLATIONS
AND ACCESSORIES
GROSS
ACCUMULATED
BALANCE
DEPRECIATION NET BALANCE
GROSS
BALANCE
MOTOR
VEHICLES
ACCUMULATED
DEPRECIATION NET BALANCE
OTHER PROPERTIES,
PLANT AND EQUIPMENT
GROSS
ACCUMULATED
BALANCE
DEPRECIATION NET BALANCE
TOTAL
PROPIEDAD,
PLANTA Y
EQUIPO
269,624
(43,724)
225,900
1,199,794
(919,442)
280,352
919,097
(438,421)
480,676
1,454,214
(499,965)
954,249
72,577
(51,945)
20,632
1,479,853
(717,239)
762,614
2,724,423
4,912
-
(8,227)
(216)
-
(8,227)
4,696
-
1,356
723
(2,570)
(82,629)
(97)
1,907
1,356
(82,629)
626
(663)
145,140
53,511
7,263
(102,750)
(23,323)
(3,165)
145,140
(102,750)
30,188
4,098
355,354
(94,541)
14,765
(1,857)
16
(268,400)
6,411
(5)
355,354
(94,525)
(268,400)
21,176
(1,862)
3,545
-
(10,310)
(2,531)
(244)
(10,310)
1,014
(244)
325,203
(46,891)
67,109
6,063
35,769
(242,766)
(27,784)
1,355
325,203
(11,122)
(242,766)
39,325
7,418
827,053
(105,647)
(715,082)
97,025
8,747
4,912
(8,443)
(3,531)
(491)
(80,819)
(81,310)
205,914
(129,238)
76,676
273,721
(261,978)
11,743
3,545
(13,085)
(9,540)
351,484
(233,426)
118,058
112,096
274,536
(52,167)
222,369
1,199,303
(1,000,261)
199,042
1,125,011
(567,659)
557,352
1,727,935
(761,943)
965,992
76,122
(65,030)
11,092
1,831,337
(950,665)
880,672
2,836,519
GROSS
BALANCE
209,961
59,664
(1)
-
BUILDINGS
ACCUMULATED
DEPRECIATION
(36,459)
(7,265)
-
NET BALANCE
173,502
59,664
(7,265)
(1)
-
GROSS
BALANCE
1,525,170
(325,376)
-
OTHER PROPERTIES,
PLANT AND EQUIPMENT
GROSS
ACCUMULATED
BALANCE
DEPRECIATION NET BALANCE
1,544,626
(850,580)
694,046
131,667
131,667
(173,682)
(173,682)
(311,276)
307,023
(4,253)
114,836
114,836
TOTAL
PROPIEDAD,
PLANTA Y
EQUIPO
2,448,469
911,547
(578,042)
(8,254)
(49,297)
59,663
(7,265)
52,398
(325,376)
221,472
(103,904)
5,040
22,064
27,104
392,772
(157,669)
235,103
(5,688)
2,373
(3,315)
(64,773)
133,341
68,568
275,954
269,624
(43,724)
225,900
1,199,794
(919,442)
280,352
919,097
(438,421)
480,676
1,454,214
(499,965)
954,249
72,577
(51,945)
20,632
1,479,853
(717,239)
762,614
2,724,423
(1) Total depreciation expenses are recorded in the Income Statement under the item Administrative expenses.
PLANT AND
EQUIPMENT
ACCUMULATED
DEPRECIATION NET BALANCE
(1,140,914)
384,256
(103,875)
(103,875)
325,347
(29)
-
INFORMATION
TECHNOLOGY EQUIPMENT
GROSS
ACCUMULATED
BALANCE
DEPRECIATION NET BALANCE
914,057
(460,485)
453,572
125,330
125,330
(81,544)
(81,544)
(105,907)
103,608
(2,299)
(14,383)
(14,383)
FIXED INSTALLATIONS
AND ACCESSORIES
GROSS
ACCUMULATED
BALANCE
DEPRECIATION NET BALANCE
1,061,442
(342,296)
719,146
594,886
594,886
(203,069)
(203,069)
(46,942)
45,400
(1,542)
(155,172)
(155,172)
GROSS
BALANCE
78,265
(11,110)
5,422
MOTOR
VEHICLES
ACCUMULATED
DEPRECIATION NET BALANCE
(54,318)
23,947
(8,607)
(8,607)
10,980
(130)
5,422
CONSOLIDATED FINANCIAL STATEMENTS
MS
BUILDINGS
ACCUMULATED
DEPRECIATION NET BALANCE
30
NOTE 13
INVESTMENT PROPERTIES
Investment properties correspond mainly to land, buildings and other
constructions held for leasing operations, which are valued according
to the descriptions set out in Note 3.2.
On December 31, 2014 and 2013, investment properties held for leasing were the following:
ITEM
Projects under construction
Other investment properties
TOTAL INVESTMENT PROPERTIES
12.31.2014
M$
92,351,912
998,279,510
1,090,631,422
12.31.2013
M$
174,996,149
772,842,731
947,838,880
On December 31, 2014 and 2013 changes in investment properties were the following:
CHANGES IN INVESTMENT PROPERTIES
OPENING BALANCE
Additions (1)
Withdrawals, Investment properties
Divestments through disposal of businesses (2)
Gain (Loss) due to Fair Value Adjustments
Increase (Decrease) in Foreign Exchange Rate
Other Increase (Decrease) in Fair Value Model
TOTAL CHANGES
CLOSING BALANCE
12.31.2014
M$
947,838,880
116,875,677
(105,999)
16,707,834
11,049,733
(1,734,703)
142,792,542
12.31.2013
M$
814,292,402
134,515,717
(4,367,676)
4,459,032
(1,060,595)
133,546,478
1,090,631,422
947,838,880
12.31.2014
OPENING BALANCE
Additions
Withdrawals
Transfers from Projects under construction to Other IP
Gain (Loss) due to Fair Value Adjustments
Increase (Decrease) in Foreign Exchange Rate
Other Increase (Decrease) in Fair Value Model
TOTAL CHANGES
CLOSING BALANCE
12.31.2013
Additions
Divestments through disposal of businesses
Gain (Loss) due to Fair Value Adjustments
Increase (Decrease) in Foreign Exchange Rate
TOTAL CHANGES
CLOSING BALANCE
PROJECTS UNDER
CONSTRUCTION
174,996,149
58,362,670
(140,254,046)
(270,176)
(482,685)
(82,644,237)
OTHER
INVESTMENT
PROPERTIES
772,842,731
58,513,007
(105,999)
140,254,046
16,707,834
11,319,909
(1,252,018)
225,436,779
TOTALS
M$
947,838,880
116,875,677
(105,999)
16,707,834
11,049,733
(1,734,703)
142,792,542
92,351,912
998,279,510
1,090,631,422
PROJECTS UNDER
CONSTRUCTION
39,572,763
(3,632,613)
(403,883)
35,536,267
OTHER
INVESTMENT
PROPERTIES
94,942,954
(735,063)
4,459,032
(656,712)
98,010,211
TOTALS
M$
134,515,717
(4,367,676)
4,459,032
(1,060,595)
133,546,478
174,996,149
772,842,731
947,838,880
Investment properties are presented at their fair value, which has been determined based on valuations carried out by the Management.
(1) On December 31, 2014, the main additions carried out in Chile totaled M$51,695,795; in Peru additions totaled M$35,861,195and in Colombia they totaled
M$29,318,687
During 2013 the main additions carried out in Colombia total M$27,957,642; in Peru additions totaled M$57,304,448 and in Chile they totaled M$49,253,627.
(2) On December 31, 2013 change corresponds mainly to the divestment of assets of the Peru Division (La Unión).
CONSOLIDATED FINANCIAL STATEMENTS
On December 31, 2014 and 2013, the breakdown of investment properties was the following:
31
NOTE 13 INVESTMENT PROPERTIES (CONTINUED)
On December 31, 2014 and 2013 financial leases associated to investment properties were the following:
12.31.2014
M$
12.31.2013
M$
Fashion Center S.A.C.
12,418,519
10,737,337
Inversiones Alameda Sur S.A.C.
1,370,950
3,031,989
Centro Comercial Arauco Express Ciudad Empresarial S.A.
1,714,074
1,622,372
Todo Arauco S.A.
3,082,137
5,889,159
18,585,680
21,280,857
COMPANY
TOTAL
Note 15 letter a) shows the value and flows of financial liabilities at closing date, corresponding to investment properties under financial leases.
Assets acquired under the financial leasing modality are not legally owned by the Company while it does not execute its purchase option and
therefore it cannot freely dispose of them.
NOTE 14
DEFERRED TAXES
On December 31, 2014 and 2013, the balance for deferred taxes was the following:
ASSETS
ITEM
LIABILITIES
12.31.2014
M$
12.31.2013
M$
12.31.2014
M$
12.31.2013
M$
Depreciation
787,781
374,974
30,649,014
20,239,131
Write-offs of Uncollectible Receivables
916,250
817,832
-
-
-
-
497,924
419,959
Provisions
1,606,841
1,049,697
-
-
Revaluation of Investment Properties
18,757,138
11,865,178
72,228,852
52,819,488
-
-
603,031
245,769
10,488,335
4,837,486
723,085
726,504
Revaluation of Financial Instruments
3,792,379
3,041,247
1,335,676
1,191,250
Tax losses
5,087,048
3,827,154
-
-
359,645
411,199
341,045
357,218
41,795,417
26,224,767
106,378,627
75,999,319
Amortizations
Plant and equipment
Intangible assets
Other
TOTAL DEFERRED TAXES
Changes in deferred taxes on December 31, 2014 and 2013, were the following:
LIABILITIES
ITEM
12.31.2014
M$
12.31.2013
M$
12.31.2014
M$
12.31.2013
M$
Opening balance
26,224,767
15,630,268
75,999,319
62,506,914
Increase (decrease) in Deferred Taxes
15,570,650
10,594,499
30,379,308
13,492,405
TOTAL CHANGES
15,570,650
10,594,499
30,379,308
13,492,405
41,795,417
26,224,767
106,378,627
75,999,319
CLOSING BALANCE
CONSOLIDATED FINANCIAL STATEMENTS
ASSETS
32
Current Income Tax Expense (income) on December 31, 2014 and 2013, was the following:
ITEM
12.31.2014
M$
12.31.2013
M$
Current Income Tax expense
(10,019,701)
(5,907,198)
1,615
302,009
1,015,445
(23,642)
-
(15,608)
TOTAL CURRENT INCOME TAX EXPENSE, NET
(9,002,641)
(5,644,439)
Deferred expense from temporary differences
(2,741,759)
(3,167,571)
-
697
(2,741,759)
(3,166,874)
(11,744,400)
(8,811,313)
Tax benefit
Adjustments to Current Income Taxes previous period
Effect of rate change (1)
Other expense from deferred taxes
TOTAL DEFERRED TAX EXPENSE, NET
CURRENT INCOME TAX EXPENSE (INCOME)
Effective Tax Rate on December 31, 2014 and 2013, were the following:
ITEM
EARNING BEFORE TAX
PERMANENT DIFFERENCES
TAX RATE 21%
M$
12.31.2014
72,537,170
TAX BASE
M$
TAX RATE 20%
M$
12.31.2013
(15,232,806)
58,827,633
(11,765,527)
(3,488,406)
(2,954,214)
(4,120,219)
(3,706,410)
6,915,920
6,376,293
Higher rate for subsidiaries outside Chile
(1,841,319)
(1,501,089)
Deficit/(Surplus) Income Tax, previous years
(265,758)
(279,007)
Tax credit for contributions
(4,708,546)
(3,844,001)
Total Corporate Tax expenses
(11,744,400)
(8,811,313)
Income Tax 21%-20%
(9,268,399)
(5,930,763)
-
(15,685)
Deficit/(Surplus), previous years
265,758
302,009
TOTAL INCOME TAX EXPENSE
(9,002,641)
(5,644,439)
TOTAL DEFERRED TAX EXPENSE
(2,741,759)
(3,166,874)
EFFECTIVE RATE
(16.19%)
(14.98%)
Profit (loss) of associates
Deferred tax/financial differences
Income Tax 35%
(1) On September 29, 2014 Law 20.780 was published, which, among other points, raises the first category income tax rate.
The effect of the change in current tax rate from 20% to 21% was M$314,924. The effect on the determined deferred tax
was M$11,482,475 and was recorded under Equity, as per Directive Release No.856 issued by Superintendencia de Valores y
Seguros (SVS) on October 17, 2014.
CONSOLIDATED FINANCIAL STATEMENTS
TAX BASE
M$
33
NOTE 15
OTHER FINANCIAL LIABILITIES
The details of this current and non-current item on December 31, 2014 and 2013, were the following:
ITEM
CURRENT
M$
NON-CURRENT
M$
CURRENT
M$
Financial lease (a)
1,360,325
8,781,466
1,274,871
10,585,421
48,236,387
261,470,599
29,373,376
270,491,949
2,458,495
135,693,333
5,077,538
116,162,839
-
15,327,794
-
8,411,896
52,055,207
421,273,192
35,725,785
405,652,105
12.31.2014
Bank loans (b)
Bonds issuance (c)
Hedging liabilities (Note 35)
TOTAL
NON-CURRENT
M$
12.31.2013
A) FINANCIAL LEASES
Currencies and Maturities and Leases on December 31, 2014 and 2013, were the following:
CURRENT
DEBTOR ID.
NAME OF DEBTOR
COUNTRY
OF DEBTOR
LENDER ID.
FINANCIAL
INSTITUTION
CURRENCY
AMORTIZATION
20512076379
Fashion Center S.A.C.
Peru
20100053455
Interbank
USD
Monthly
6.30%
20512076379
Fashion Center S.A.C.
Peru
20100053455
Interbank
USD
Monthly
20492911918
Inv. Alameda Sur S.A.C.
Peru
20100047218
Crédito del Peru
USD
76.263.221-7
C.C. Arauco
Exp.C.Empresarial
Chile
99.289.000-2
Metlife
96.671.020-9
Todo Arauco S.A.
Chile
97.011.000-3
96.671.020-9
Todo Arauco S.A.
Chile
96.671.020-9
Todo Arauco S.A.
Chile
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
BALANCE
UP TO
90 DAYS
FROM 90 DAYS TO
1 YEAR
TOTAL
FLOWS
6.30%
169,575
65,957
197,870
263,827
6.30%
6.30%
551,214
200,160
600,480
800,640
Quarterly
8.21%
8.21%
266,641
78,060
234,179
312,239
UF
Monthly
5.74%
5.74%
179,025
58,196
174,587
232,783
International
UF(*)
Monthly
6.20%
6.20%
145,157
48,798
148,089
196,887
97.011.000-3
International
UF
Monthly
5.90%
5.90%
33,024
12,903
38,710
51,613
97.011.000-3
International
UF
Monthly
5.80%
5.80%
15,689
6,259
18,778
25,037
TOTALS
1,360,325
470,333
1,412,693
1,883,026
12.31.2014
NOMINAL ANNUAL EFFECTIVE
RATE %
RATE %
NON-CURRENT
DEBTOR ID.
NAME OF DEBTOR
COUNTRY
OF
DEBTOR
20512076379
Fashion Center S.A.C.
Peru
20100053455
Interbank
USD
20512076379
Fashion Center S.A.C.
Peru
20100053455
Interbank
20492911918
Inv. Alameda Sur S.A.C.
Peru
20100047218
76.263.221-7
C.C. Arauco
Exp.C.Empresarial
Chile
96.671.020-9
Todo Arauco S.A.
96.671.020-9
96.671.020-9
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
NOMINAL RATE
ANNUAL
EFFECTIVE RATE %
BALANCE
FROM 1 YEAR TO 2
YEARS
FROM 2 YEARS TO
3 YEARS
FROM 3 YEARS TO
4 YEARS
FROM 4 YEARS TO
5 YEARS
MORE THAN 5
YEARS
TOTAL FLOWS
Mensual
6.30%
6.30%
1,131,776
263,827
946,213
-
-
-
1,210,040
USD
Mensual
6.30%
6.30%
3,627,952
867,360
2,996,343
-
-
-
3,863,703
Crédito del Peru
USD
Trimestral
8.21%
8.21%
1,104,309
312,238
312,238
312,238
312,238
156,119
1,405,071
99.289.000-2
Metlife
UF
Mensual
8.74%
5.74%
844,002
232,782
232,782
232,782
232,782
19,399
950,527
Chile
97.011.000-3
Internacional
UF(*)
Mensual
6.20%
6.20%
1,611,145
201,576
206,565
211,872
217,518
996,252
1,833,783
Todo Arauco S.A.
Chile
97.011.000-3
Internacional
UF
Mensual
5.90%
5.90%
305,455
51,613
51,613
51,613
51,613
167,744
374,196
Todo Arauco S.A.
Chile
97.011.000-3
Internacional
UF
Mensual
5.80%
5.80%
156,827
25,037
25,037
25,037
25,037
93,888
194,036
TOTALS
8,781,466
1,954,433
4,770,791
833,542
839,188
1,433,402
9,831,356
LENDER ID.
BANK
CURRENCY
AMORTIZATION
Financially leased assets, held by the Company as tenant, have their respective purchase option and are presented as Investment
Properties (see Note 13).
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2014
34
NOTE 15 OTHER FINANCIAL LIABILITIES (CONTINUED)
A) FINANCIAL LEASES (CONTINUED)
DEBTOR ID.
20512076379
20512076379
20492911918
76.263.221-7
96.671.020-9
96.671.020-9
96.671.020-9
96.671.020-9
96.671.020-9
CURRENT
NAME OF DEBTOR
Fashion Center S.A.C.
Fashion Center S.A.C.
Inv. Alameda Sur S.A.C.
C.C. Arauco
Exp.C.Empresarial
Todo Arauco S.A.
Todo Arauco S.A.
Todo Arauco S.A.
Todo Arauco S.A.
Todo Arauco S.A.
COUNTRY
OF DEBTOR
LENDER ID.
Peru
20100053455
Peru
20100053455
Peru
20100047218
FINANCIAL
INSTITUTION
Interbank
Interbank
Crédito del Peru
USD
USD
USD
AMORTIZATION
Monthly
Monthly
Quarterly
Chile
99.289.000-2
Metlife
UF
Monthly
8.74%
Chile
Chile
Chile
Chile
Chile
97.023.000-9
97.023.000-9
97.011.000-3
97.011.000-3
97.011.000-3
Corpbanca
Corpbanca
Internacional
Internacional
Internacional
UF
UF
UF(*)
UF
UF
Monthly
Monthly
Monthly
Monthly
Monthly
8.34%
7.78%
9.20%
8.90%
8.80%
CURRENCY
12.31.2014
DEBTOR ID.
20512076379
20512076379
20492911918
76.263.221-7
96.671.020-9
96.671.020-9
96.671.020-9
96.671.020-9
96.671.020-9
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
NOMINAL ANNUAL EFFECTIVE
RATE %
RATE %
6.30%
6.30%
6.30%
6.30%
8.21%
8.21%
BALANCE
140,593
442,633
148,795
UP TO
90 DAYS
57,006
172,997
67,466
FROM 90 DAYS TO
1 YEAR
171,018
518,991
202,399
TOTAL
FLOWS
228,024
691,988
269,865
5.74%
160,000
55,082
165,245
220,327
5.34%
4.78%
6.20%
5.90%
5.80%
128,164
81,980
129,152
29,516
14,038
51,353
23,534
58,659
12,213
5,924
154,058
70,604
176,027
36,639
17,774
205,411
94,138
234,686
48,852
23,698
TOTALS
1,274,871
504,234
1,512,755
2,016,989
NOMINAL RATE
6.30%
6.30%
ANNUAL
EFFECTIVE RATE %
6.30%
6.30%
BALANCE
1,127,565
3,606,065
FROM 1 YEAR TO 2
YEARS
228,024
691,988
NON-CURRENT
NAME OF DEBTOR
Fashion Center S.A.C.
Fashion Center S.A.C.
Inv. Alameda Sur
S.A.C.
C.C. Arauco
Exp.C.Empresarial
Todo Arauco S.A.
Todo Arauco S.A.
Todo Arauco S.A.
Todo Arauco S.A.
Todo Arauco S.A.
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
COUNTRY
OF DEBTOR
LENDER ID.
Peru
20100053455
Peru
20100053455
BANK
Interbank
Interbank
USD
USD
AMORTIZATION
Monthly
Monthly
Peru
20100047218
Crédito del Peru
USD
Quarterly
8.21%
8.21%
1,192,304
269,866
269,866
Chile
99.289.000-2
Metlife
UF
Monthly
8.74%
5.74%
968,293
220,328
Chile
Chile
Chile
Chile
Chile
97.023.000-9
97.023.000-9
97.011.000-3
97.011.000-3
97.011.000-3
Corpbanca
Corpbanca
Internacional
Internacional
Internacional
UF
UF
UF(*)
UF
UF
Monthly
Monthly
Monthly
Monthly
Monthly
8.34%
7.78%
9.20%
8.90%
8.80%
5.34%
4.78%
6.20%
5.90%
5.80%
1,352,522
192,671
1,662,341
320,371
163,289
TOTALS
10,585,421
CURRENCY
(*) The rates and currencies indicated correspond to financial conditions that include the effect of the derivative.
Assets under financial lease that the Company holds as a tenant include their respective purchase option and are shown as Investment Properties (see Note 13).
FROM 2 YEARS TO FROM 3 YEARS TO 4
3 YEARS
YEARS
228,024
817,806
691,988
2,647,387
FROM 4 YEARS TO
5 YEARS
-
MORE THAN 5
YEARS
-
TOTAL FLOWS
1,273,854
4,031,363
269,866
269,866
404,796
1,484,260
220,328
220,328
220,328
238,691
1,120,003
205,411
94,138
234,835
48,852
23,697
205,411
94,138
234,991
48,852
23,697
205,411
15,690
235,156
48,852
23,697
205,411
235,332
48,852
23,697
855,880
1,238,857
207,622
112,565
1,677,524
203,966
2,179,171
403,030
207,353
2,017,139
2,017,295
4,484,193
1,003,486
3,058,411
12,580,524
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2013
35
NOTE 15 OTHER FINANCIAL LIABILITIES (CONTINUED)
B) BANK LOANS
The details per currencies and loan maturities on December 31, 2014 and 2013, were the following:
DEBTOR ID.
9002521390
9004602978
9004602978
9004602978
9003627227
9003627227
9003627227
9003627227
9003627227
9003627227
20423264617
20423264617
20423264617
76.187.012-2
76.187.012-2
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
86.339.000-1
NAME OF DEBTOR
Inv. Arauco Alameda S.A.
Inv. Inmob. Bucaramanga S.A.S.
Inv. Inmob. Bucaramanga S.A.S.
Inv. Inmob. Bucaramanga S.A.S.
Inmobiliaria La Colina Arauco S.A.S.
Inmobiliaria La Colina Arauco S.A.S.
Inmobiliaria La Colina Arauco S.A.S.
Inmobiliaria La Colina Arauco S.A.S.
Inmobiliaria La Colina Arauco S.A.S.
Inmobiliaria La Colina Arauco S.A.S.
Inmuebles Panamericana S.A.
Inmuebles Panamericana S.A.
Inmuebles Panamericana S.A.
Arauco Express S.A.
Arauco Express S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Plaza Estación S.A.
COUNTRY OF
DEBTOR
Colombia
Colombia
Colombia
Colombia
Colombia
Colombia
Colombia
Colombia
Colombia
Colombia
Peru
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
LENDER ID.
890.903.938-8
890.903.938-8
890.903.938-8
890.903.938-8
890.903.937-0
860.034.313-7
860.002.964-4
890.903.937-0
860.034.313-7
860.002.964-4
2046097262-1
2046097262-1
2046097262-1
97.053.000-2
97.006.000-k
97.030.000-7
97.030.000-7
97.030.000-7
97.030.000-7
97.036.000-k
97.004.000-5
97.004.000-5
76.645.030-k
97.006.000-k
97.006.000-k
97.006.000-k
(*) The quoted rates and currencies correspond to financial conditions that include the impact of derivatives.
FINANCIAL
INSTITUTION
Bco. Colombia
Bco. Colombia
Bco. Colombia
Bco. Colombia
Bco.Corpbanca
Bco. Davivienda
Bco. Bogotá
Bco.Corpbanca
Bco. Davivienda
Bco. Bogotá
BCI
BCI
BCI
Security
BCI
Estado
Estado
Estado
Estado
Santander
Chile
Chile
Itaú
BCI
BCI
BCI
CURRENCY
COP
COP
COP
COP
COP
COP
COP
COP
COP
COP
USD
USD
USD
UF(*)
UF(*)
UF
UF
UF
UF
UF(*)
UF(*)
UF(*)
CLP
UF(*)
UF(*)
UF(*)
AMORTIZATION
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Bullet
Bullet
Bullet
Bullet
Bullet
Bullet
Semi-annually
Semi-annually
Bullet
Semi-annually
Semi-annually
Semi-annually
Bullet
Semi-annually
Semi-annually
Semi-annually
NOMINAL
RATE %
10.05%
10.30%
10.30%
10.30%
8.62%
8.48%
8.48%
8.62%
8.48%
8.48%
3.40%
3.40%
3.40%
3.45%
4.67%
4.25%
4.29%
4.25%
5.97%
4.01%
3.49%
3.93%
4.40%
3.49%
3.82%
3.98%
ANNUAL
EFFECTIVE
RATE %
10.05%
10.30%
10.30%
10.30%
8.30%
8.53%
8.53%
8.31%
8.92%
8.94%
3.40%
3.40%
3.40%
3.54%
4.81%
4.42%
4.55%
4.52%
6.37%
4.25%
3.95%
4.02%
4.58%
3.55%
3.97%
5.11%
TOTALS
BALANCE
M$
3,001,427
361,098
481,464
244,813
18,885
6,545
110,724
166,086
110,724
28,611
26,512
45,027
1,737,753
2,389,673
16,134,811
1,097,410
8,330,153
6,013,615
23,390
2,689,143
3,849,316
1,369,207
48,236,387
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
FROM 90 DAYS TO
1 YEAR
TOTAL FLOWS
2,263,548
1,296,683
3,560,231
1,032,573
1,032,573
1,343,625
1,343,625
659,088
659,088
47,845
315,912
363,757
90,707
90,707
90,707
90,707
1,123
37,909
39,032
12,546
12,546
12,546
12,546
207,122
210,555
417,677
310,682
315,832
626,514
207,122
210,555
417,677
53,692
53,987
107,679
456,024
456,024
1,967,566
1,967,566
2,088,071
2,088,071
1,259,620
1,233,214
2,492,834
8,378,203
8,281,415
16,659,618
1,419,062
1,419,062
8,625,216
363,123
8,988,339
6,439,895
6,439,895
255,255
768,570
1,023,825
2,779,177
172,486
2,951,663
5,126,382
5,126,382
118,635
1,756,671
1,875,306
24,507,240
35,755,704
60.262.944
CONSOLIDATED FINANCIAL STATEMENTS
CURRENT
12.31.2014
36
NOTE 15 OTHER FINANCIAL LIABILITIES (CONTINUED)
B) BANK LOANS (CONTINUED)
NON-CURRENT
12.31.2014
NOMINAL
RATE %
BALANCE
M$
FROM 1 YEAR
TO 2 YEARS
FROM 2 YEARS TO
3 YEARS
FROM 3 YEARS
TO 4 YEARS
FROM 4 YEARS
TO 5 YEARS
MORE THAN 5
YEARS
TOTAL FLOWS
7,959,618
2,469,683
2,304,772
2,139,862
1,974,951
925,563
9,814,831
DEBTOR ID.
NAME OF DEBTOR
COUNTRY OF
DEBTOR
LENDER ID.
FINANCIAL
INSTITUTION
CURRENCY
AMORTIZATION
9002521390
Inv. Arauco Alameda S.A.
Colombia
890.903.938-8
Bco. Colombia
COP
Semi-annually
10.05%
10.05%
9004602978
Inv. Inmob. Bucaramanga S.A.S.
Colombia
890.903.938-8
Bco. Colombia
COP
Semi-annually
10.30%
10.30%
7,122,552
1,074,973
1,224,526
1,503,323
1,595,988
4,603,737
10,002,547
9004602978
Inv. Inmob. Bucaramanga S.A.S.
Colombia
890.903.938-8
Bco. Colombia
COP
Semi-annually
10.30%
10.30%
9,496,736
1,401,780
1,603,150
1,977,953
2,106,204
6,109,277
13,198,364
9004602978
Inv. Inmob. Bucaramanga S.A.S.
Colombia
890.903.938-8
Bco. Colombia
COP
Semi-annually
10.30%
10.30%
4,748,368
687,618
820,223
978,895
1,043,177
3,042,786
6,572,699
9003627227
Inmobiliaria La Colina Arauco S.A.S.
Colombia
890.903.937-0
Bco.Corpbanca
COP
Semi-annually
8.62%
8.30%
4,160,203
315,912
473,841
605,970
664,649
4,395,579
6,455,951
9003627227
Inmobiliaria La Colina Arauco S.A.S.
Colombia
860.034.313-7
Bco. Davivienda
COP
Semi-annually
8.48%
8.53%
1,079,390
90,707
122,783
157,483
172,971
1,148,406
1,692,350
9003627227
Inmobiliaria La Colina Arauco S.A.S.
Colombia
860.002.964-4
Bco. Bogotá
COP
Semi-annually
8.48%
8.53%
1,087,099
-
-
-
-
1,137,224
9003627227
Inmobiliaria La Colina Arauco S.A.S.
Colombia
890.903.937-0
Bco.Corpbanca
COP
Semi-annually
8.62%
8.31%
501,508
37,909
56,861
72,716
79,758
527,469
774,713
9003627227
Inmobiliaria La Colina Arauco S.A.S.
Colombia
860.034.313-7
Bco. Davivienda
COP
Semi-annually
8.48%
8.92%
128,363
12,546
14,511
16,864
19,854
148,071
211,846
9003627227
Inmobiliaria La Colina Arauco S.A.S.
Colombia
860.002.964-4
Bco. Bogotá
COP
Semi-annually
8.48%
8.94%
127,039
137,297
-
-
-
-
137,297
20423264617
Inmuebles Panamericana S.A.
Peru
2046097262-1
BCI
USD
Bullet
3.40%
3.40%
12,130,941
419,965
12,339,207
-
-
-
12,759,172
20423264617
Inmuebles Panamericana S.A.
Peru
2046097262-1
BCI
USD
Bullet
3.40%
3.40%
18,196,412
629,947
18,508,811
-
-
-
19,138,758
20423264617
Inmuebles Panamericana S.A.
Peru
2046097262-1
BCI
USD
Bullet
3.40%
3.40%
12,130,941
419,965
12,339,207
-
-
-
12,759,172
76.187.012-2
Arauco Express S.A.
Chile
97.053.000-2
Security
UF(*)
Bullet
3.45%
3.54%
3,068,729
107,974
107,679
109,154
3,184,592
-
3,509,399
76.187.012-2
Arauco Express S.A.
Chile
97.006.000-k
BCI
UF(*)
Bullet
4.67%
4.81%
9,074,935
457,274
456,024
456,024
456,024
9,333,445
11,158,791
94.627.000-8
Parque Arauco S.A.
Chile
97.030.000-7
Estado
UF
Semi-annually
4.25%
4.42%
45,275,951
1,972,957
1,967,566
1,967,566
1,967,566
48,615,532
56,491,187
94.627.000-8
Parque Arauco S.A.
Chile
97.030.000-7
Estado
UF
Semi-annually
4.29%
4.55%
8,965,860
2,017,736
1,945,249
1,873,838
1,802,427
2,570,260
10,209,510
94.627.000-8
Parque Arauco S.A.
Chile
97.030.000-7
Estado
UF
Semi-annually
4.25%
4.52%
2,313,213
2,393,094
-
-
-
-
2,393,094
94.627.000-8
Parque Arauco S.A.
Chile
97.030.000-7
Estado
UF
Bullet
5.97%
6.37%
26,027,717
13,673,362
8,134,513
5,353,789
-
-
27,161,664
94.627.000-8
Parque Arauco S.A.
Chile
97.036.000-k
Santander
UF(*)
Semi-annually
4.01%
4.25%
4,689,290
1,349,342
1,277,882
1.207,291
1,136,701
541,903
5,513,119
94.627.000-8
Parque Arauco S.A.
Chile
97.004.000-5
Chile
UF(*)
Semi-annually
3.49%
3.95%
16,075,718
8,627,200
8,263,085
-
-
-
16,890,285
94.627.000-8
Parque Arauco S.A.
Chile
97.004.000-5
Chile
UF
Semi-annually
3.93%
4.02%
6,016,005
6,200,353
-
-
-
-
6,200,353
94.627.000-8
Parque Arauco S.A.
Chile
76.645.030-k
Itaú
CLP
Bullet
4.40%
4.58%
25,423,624
26,237,715
-
-
-
-
26,237,715
94.627.000-8
Parque Arauco S.A.
Chile
97.006.000-k
BCI
UF(*)
Semi-annually
3.49%
3.55%
5,374,160
2,837,822
2,722,727
-
-
-
5,560,549
94.627.000-8
Parque Arauco S.A.
Chile
97.006.000-k
BCI
UF(*)
Semi-annually
3.82%
3.97%
20,696,321
4,876,626
4,643,736
4,406,954
4,170,173
7,633,243
25,730,732
86.339.000-1
Plaza Estación S.A.
Chile
97.006.000-k
BCI
UF(*)
Semi-annually
3.98%
5.11%
9,599,906
1,816,213
1,755,026
1,694,991
1,634,955
4,545,147
11,446,332
TOTALS
261,470,599
81,403,194
81,081,379
24,522,673
22,009,990
94,140,418
303,157,654
(*) The quoted rates and currencies correspond to financial conditions that include the impact of derivatives.
CONSOLIDATED FINANCIAL STATEMENTS
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
ANNUAL
EFFECTIVE
RATE %
37
NOTE 15 OTHER FINANCIAL LIABILITIES (CONTINUED)
B) BANK LOANS (CONTINUED)
CURRENT
12.31.2013
NAME OF DEBTOR
Inv. Arauco Alameda S.A.
Inv. Inmob. Bucaramanga S.A.S.
Inv. Inmob. Bucaramanga S.A.S.
Inv. Inmob. Bucaramanga S.A.S.
Inmuebles Panamericana S.A.
Inmuebles Panamericana S.A.
Inmuebles Panamericana S.A.
Arauco Express S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Plaza Estación S.A.
COUNTRY OF
DEBTOR
Colombia
Colombia
Colombia
Colombia
Peru
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
LENDER ID.
890.903.938-8
890.903.938-8
890.903.938-8
890.903.938-8
2046097262-1
2046097262-1
2046097262-1
97.053.000-2
97.030.000-7
97.030.000-7
97.030.000-7
97.036.000-k
97.036.000-k
97.004.000-5
97.004.000-5
76.645.030-k
97.006.000-k
97.006.000-k
97.006.000-k
FINANCIAL
INSTITUTION
Bco. Colombia
Bco. Colombia
Bco. Colombia
Bco. Colombia
BCI
BCI
BCI
Security
Estado
Estado
Estado
Santander
Santander
Chile
Chile
Itaú
BCI
BCI
BCI
CURRENCY
COP
COP
COP
COP
USD
USD
USD
UF(*)
UF
UF
UF
UF(*)
CLP
UF(*)
UF(*)
CLP
UF(*)
UF(*)
UF(*)
AMORTIZATION
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Bullet
Bullet
Bullet
Bullet
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Bullet
Semi-annually
Semi-annually
Bullet
Semi-annually
Semi-annually
Semi-annually
NOMINAL
RATE %
8.94%
9.20%
9.20%
9.20%
3.40%
3.40%
3.40%
7.67%
7.42%
7.55%
7.52%
7.01%
5.13%
6.49%
7.02%
5.96%
6.49%
6.82%
6.98%
TOTALS
29,373,376
1,468,417
179,014
268,521
180,992
1,239,885
298,750
9,078,633
375,148
2,835,991
172,882
FROM 90 DAYS TO
1 YEAR
4,828,166
926,467
1,198,632
583,880
181,981
272,972
181,981
564,953
4,378,192
2,043,951
1,214,116
1,489,653
980,625
746,344
6,320,534
1,129,565
327,887
1,657,473
1,921,885
TOTAL FLOWS
6,296,583
926,467
1,198,632
583,880
360,995
541,493
362,973
564,953
4,378,192
2,043,951
2,454,001
1,489,653
1,279,375
9,824,977
6,320,534
1,504,713
3,163,878
1,657,473
2,094,767
16,098,233
30,949,257
47,047,490
NON-CURRENT
12.31.2013
DEBTOR ID.
9002521390
9004602978
9004602978
9004602978
20423264617
20423264617
20423264617
76.187.012-2
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
86.339.000-1
BALANCE
M$
2,300,618
24,016
32,022
215,253
119,201
178,801
119,201
32,755
2,536,536
1,659,024
2,295,302
1,106,577
13,663
8,558,862
5,686,655
33,861
2,693,344
390,558
1,377,127
NAME OF DEBTOR
Inv. Arauco Alameda S.A.
Inv. Inmob. Bucaramanga S.A.S.
Inv. Inmob. Bucaramanga S.A.S.
Inv. Inmob. Bucaramanga S.A.S.
Inmuebles Panamericana S.A.
Inmuebles Panamericana S.A.
Inmuebles Panamericana S.A.
Arauco Express S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Parque Arauco S.A.
Plaza Estación S.A.
COUNTRY OF
DEBTOR
Colombia
Colombia
Colombia
Colombia
Peru
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
LENDER ID.
890.903.938-8
890.903.938-8
890.903.938-8
890.903.938-8
2046097262-1
2046097262-1
2046097262-1
97.053.000-2
97.030.000-7
97.030.000-7
97.030.000-7
97.036.000-k
97.036.000-k
97.004.000-5
97.004.000-5
76.645.030-k
97.006.000-k
97.006.000-k
97.006.000-k
FINANCIAL
INSTITUTION
Bco. Colombia
Bco. Colombia
Bco. Colombia
Bco. Colombia
BCI
BCI
BCI
Security
Estado
Estado
Estado
Santander
Santander
Chile
Chile
Itaú
BCI
BCI
BCI
(*)The rates and currencies indicated correspond to financial conditions that include the effect of the derivative.
CURRENCY
COP
COP
COP
COP
USD
USD
USD
UF(*)
UF
UF
UF
UF(*)
CLP
UF(*)
UF(*)
CLP
UF(*)
UF(*)
UF(*)
AMORTIZATION
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Bullet
Bullet
Bullet
Bullet
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Bullet
Semi-annually
Semi-annually
Bullet
Semi-annually
Semi-annually
Semi-annually
NOMINAL
RATE %
8.94%
9.20%
9.20%
9.20%
3.40%
3.40%
3.40%
7.67%
7.42%
7.55%
7.52%
7.01%
5.13%
6.49%
7.02%
5.96%
6.49%
6.82%
6.98%
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
ANNUAL
EFFECTIVE
RATE %
8.94%
9.20%
9.20%
9.20%
3.40%
3.40%
3.40%
4.67%
4.42%
4.55%
4.52%
4.01%
5.13%
3.49%
4.02%
5.96%
3.49%
3.82%
3.98%
BALANCE
M$
10,412,841
8,173,532
10,898,043
5,449,022
10,271,045
15,406,568
10,271,045
9,070,474
41,538,231
10,018,320
4,373,307
5,725,089
24,971,381
24,038,795
11,383,469
25,382,091
8,048,206
24,136,900
10,923,590
FROM 1 YEAR
TO 2 YEARS
2,735,579
1,107,916
1,441,663
707,179
360,995
541,493
360,995
564,953
4,378,193
1,976,360
2,359,468
1,419,062
25,444,167
9,330,148
6,095,363
1,504,713
3,020,403
5,126,383
2,018,072
FROM 2 YEARS TO
3 YEARS
2,574,574
1,153,409
1,504,062
737,791
362,973
544,460
362,973
566,501
4,378,193
1,909,788
2,265,065
1,349,342
8,832,585
5,868,637
26,584,217
2,876,132
4,876,626
1,940,690
FROM 3 YEARS
TO 4 YEARS
2,413,570
1,313,875
1,720,124
845,524
10,664,703
15,997,055
10,664,703
564,953
4,378,193
1,841,179
1,277,882
8,330,922
2,730,272
4,643,736
1,860,281
FROM 4 YEARS
TO 5 YEARS
2,252,565
1,613,013
2,122,276
1,050,253
564,953
4,378,193
1,773,588
1,207,291
4,406,954
1,781,386
MORE THAN 5
YEARS
3,108,713
6,652,091
8,814,928
4,383,590
9,953,012
37,205,025
4,138,750
1,678,605
11,803,416
6,337,235
TOTAL FLOWS
13,085,001
11,840,304
15,603,053
7,724,337
11,388,671
17,083,008
11,388,671
12,214,372
54,717,797
11,639,665
4,624,533
6,932,182
25,444,167
26,493,655
11,964,000
28,088,930
8,626,807
30,857,115
13,937,664
TOTALS
270,491,949
70,493,105
68,688,018
69,246,972
21.150.472
94,075,365
323,653,932
CONSOLIDATED FINANCIAL STATEMENTS
DEBTOR ID.
9002521390
9004602978
9004602978
9004602978
20423264617
20423264617
20423264617
76.187.012-2
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
94.627.000-8
86.339.000-1
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
ANNUAL
EFFECTIVE
RATE %
8.94%
9.20%
9.20%
9.20%
3.40%
3.40%
3.40%
4.67%
4.42%
4.55%
4.52%
4.01%
5.13%
3.49%
4.02%
5.96%
3.49%
3.82%
3.98%
38
NOTE 15 OTHER FINANCIAL LIABILITIES (CONTINUED)
C) BOND ISSUANCE
The details per currencies and maturity of bonds on December 31, 2014 and 2013, were the following:
CURRENT
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
NOMINAL
RATE
%
EFFECTIVE
RATE
%
BALANCE
M$
UP TO
90 DAYS
FROM 90
DAYS TO 1 YEAR
TOTAL
FLOWS
DEBTOR ID.
NAME OF DEBTOR
COUNTRY
SERIES
CURRENCY
AMORTIZATION
94.627.000-8
Parque Arauco S.A.
Chile
K Series
UF
Semi-annually
3.65%
3.85%
851,640
1,336,217
1,336,217
2,672,434
94.627.000-8
Parque Arauco S.A.
Chile
H Series
UF
Semi-annually
4.30%
3.91%
181,925
239,951
239,951
479,902
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
7.81%
7.81%
1,047,496
504,658
1,513,974
2,018,632
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
8.44%
8.44%
252,901
318,724
956,173
1,274,897
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
VAC + 4.75%
VAC + 4.75%
124,533
144,922
434,767
579,689
20511910642
Inm. Comerciales del Peru
Peru
Corpor
PEN
Bullet
8.52%
8.52%
-
-
917,315
917,315
TOTALS
2,458,495
2,544,472
5,398,397
7,942,869
12.31.2014
94.627.000-8
Parque Arauco S.A.
Chile
G Series
UF
Semi-annually
6.23%
3.23%
3,658,064
1,996,717
1,965,297
3,962,014
94.627.000-8
Parque Arauco S.A.
Chile
H Series
UF
Semi-annually
6.91%
3.91%
842,317
1,115,732
1,115,732
2,231,464
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
7.81%
7.81%
231,451
295,744
1,398,842
1,694,586
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
8.44%
8.44%
233,669
294,487
883,460
1,177,947
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
7.55%
VAC + 4.75%
112,037
133,902
401,705
535,607
20511910642
Inm. Comerciales del Peru
Peru
Corpor
PEN
Semi-annually
8.52%
8.52%
-
-
847,556
847,556
TOTALS
5,077,538
3,836,582
6,612,592
10,449,174
12.31.2013
NON-CURRENT
EFFECTIVE
RATE
%
BALANCE
M$
FROM 1 YEAR TO 2
YEARS
FROM 2 YEARS TO
3 YEARS
FROM 3 YEARS TO
4 YEARS
FROM 4 YEARS TO
5 YEARS
MORE THAN 5
YEARS
TOTAL
FLOWS
DEBTOR ID.
NAME OF DEBTOR
COUNTRY
SERIES
CURRENCY
AMORTIZATION
94.627.000-8
Parque Arauco S.A.
Chile
K Series
UF
Semi-annually
3.65%
3.85%
71,888,786
2,672,434
2,672,434
2,672,434
2,672,434
114,635,924
125,325,660
94.627.000-8
Parque Arauco S.A.
Chile
H Series
UF
Semi-annually
4.30%
3.91%
11,576,717
479,901
479,901
992,593
1,472,564
11,813,439
15,238,398
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
7.81%
7.81%
14,708,627
2,018,632
2,018,632
2,018,632
2,018,632
14,635,085
22,709,613
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
8.44%
8.44%
14,798,577
1,274,898
1,274,898
1,274,898
1,762,537
23,582,276
29,169,507
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
VAC + 4.75%
VAC + 4.75%
11,952,504
579,690
579,690
579,690
1,263,646
15,163,755
18,166,471
20511910642
Inm. Comerciales del Peru
Peru
Corpor
PEN
Bullet
8.52%
8.52%
10,768,122
917,315
917,315
917,315
917,315
11,226,779
14,896,039
TOTALS
135,693,333
7,942,870
7,942,870
8,455,562
10,107,128
191,057,258
225,505,688
12.31.2014
94.627.000-8
Parque Arauco S.A.
Chile
G Series
UF
Semi-annually
6.23%
3.23%
12,102,765
3,836,335
3,710,655
3,584,976
1,745,358
-
12,877,324
94.627.000-8
Parque Arauco S.A.
Chile
H Series
UF
Semi-annually
6.91%
3.91%
53,973,619
2,231,464
2,231,464
2,231,464
4,615,397
61,777,765
73,087,554
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
7.81%
7.81%
15,051,453
1,865,123
1,865,123
1,865,123
1,865,123
15,387,266
22,847,758
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
8.44%
8.44%
13,877,306
1,177,947
1,177,947
1,177,947
1,177,947
23,417,437
28,129,225
20423264617
Inmuebles Panamericana S.A.
Peru
A Series
PEN
Quarterly
7.75%
VAC + 4.75%
11,208,450
535,607
535,607
535,607
535,606
15,178,159
17,320,586
20511910642
Inm. Comerciales del Peru
Peru
Corpor
PEN
Semi-annually
8.52%
8.52%
9,949,246
847,556
847,556
847,556
847,557
11,220,582
14,610,807
TOTALS
116,162,839
10,494,032
10,368,352
10,242,673
10,786,988
126,981,209
168,873,254
12.31.2013
(*)The rates and currencies indicated correspond to financial conditions that include the effect of the derivative.
(**) In December 2014, bonds for 1.025.500 UF denominated K Series Bonds were placed.
CONSOLIDATED FINANCIAL STATEMENTS
MATURITY IN M$ (NON-DISCOUNTED FLOWS)
NOMINAL
RATE
%
39
NOTE 16
OTHER PROVISIONS
The details of Other current provisions on December 31, 2014 and 2013,
were the following:
12.31.2014
M$
12.31.2013
M$
Other provisions
1,603,946
2,329,832
TOTAL
1,603,946
2,329,832
ITEM
PROVISIONS FOR
LEGAL PROCESSES
M$
PROVISION FROM
REFUNDS
M$
OTHER MISC.
PROVISIONS
M$
TOTAL
M$
OPENING BALANCE
1,359,064
14,000
956,768
2,329,832
Additional provisions
135,000
-
1,197
136,197
(240,603)
(14,000)
(673,701)
(928,304)
-
-
66,221
66,221
(105,603)
(14,000)
(606,283)
(725,886)
1,253,461
-
350,485
1,603,946
PROVISIONS FOR
LEGAL PROCESSES
M$
PROVISION FROM
REFUNDS
M$
OTHER MISC.
PROVISIONS
M$
TOTAL
M$
OPENING BALANCE
1,549,064
39,912
138,427
1,727,403
Additional provisions
810,000
-
868,716
1,678,716
(1,000,000)
(25,912)
(50,558)
(1,076,470)
-
-
183
183
(190,000)
(25,912)
818,341
602,429
1,359,064
14,000
956,768
2,329,832
12.31.2014
Used provision
Inc. (decrease) in foreign currency
CHANGES IN PROVISIONS, TOTAL
CLOSING BALANCE
12.31.2013
Used provision
Inc. (decrease) in foreign currency
CHANGES IN PROVISIONS, TOTAL
CLOSING BALANCE
CONSOLIDATED FINANCIAL STATEMENTS
Changes in Other provisions on December 31, 2014 and 2013, were
the following:
40
COMPANY
BANK
RECEIPT
LAUNCH
TERM
MATURITY
RATE
CURRENCY
AMOUNT
PAYMENT
BENEFICIARY
ID NO.
REASON/COMMENTS
Arauco Express S.A.
Security
427616
12-09-2014
234
07-31-2015
0.5%
UF
325.00
30-day notice
I. Mun. de la Reina
69.070.600-8
Collateral for the task of fine-tuning the programming of the traffic lights in the area of influence of the
entrance and exit routes of the Las Brujas shopping center as per point No. 8 of the Measures and Works to be
completed according to the favorable technical report of the basic traffic analysis of the shopping center.
Arauco Express S.A.
Security
427623
12-09-2014
234
07-31-2015
0.5%
UF
940.00
30-day notice
I. Mun. de la Reina
69.070.600-8
Collateral for engineering project east of the highway Padre Hurtado between Carlos Silva Vildósola and
Valenzuela Puelma streets, and the traffic light associated with this section of the highway, which correspond
to points No. 1 and 2 of the basic traffic analysis of the Las Brujas shopping center.
Arauco Express S.A.
BCI
230384
05-16-2015
838
08-31-2016
0.4%
UF
54.57
30-day notice
Serv. Región Metrop.
61.812.000-7
To guarantee the adequate execution and preservation of the project for the paving and rain water access for
the strip center Las Brujas, Carlos Silva Vildósola street No. 9073, code No. 41.401, La Reina township.
Inversiones Parque Arauco Dos S.A.
Chile
3903-3
01-08-2013
1178
03-31-2016
0%
UF
33.49
Demand
Serv. Región Metrop.
61.812.000-7
To guarantee the adequate execution and preservation of the project for the paving and rain water access for
Homecenter access, Code No. 28.936, Quilicura township.
Parque Arauco S.A.
Chile
332614-6
06-25-2014
264
03-16-2015
0.4%
$
63,812,106
Demand
Tesorero Mun. de Quilicura
69.071.300-4
Collateral for the paving and lighting of the street Galvarino in the estate Rol 1118-636, Quilicura township.
Parque Arauco S.A.
Chile
358003-3
03-20-2014
365
03-20-2015
0.4%
UF
70
30-day notice
Trenes Metropolitano
96.756.320-K
To guarantee the adequate compliance of the lease contract between Trenes Metropolitanos S.A. and Plaza
Estación S.A.
Parque Arauco S.A.
Chile
354618-6
11-06-2014
182
05-07-2015
0.4%
UF
11,802.00
30-day notice
I. Mun. de las Condes
69.070.400-5
To guarantee the traffic mitigation works resulting from the addition of 326 parking spaces in Boulevard 2 on
Presidente Kennedy avenue on level S-7321.
Parque Arauco S.A.
Chile
354623-3
11-06-2014
182
05-07-2015
0.4%
UF
9,610.00
30-day notice
I. Mun. de las Condes
69.070.400-5
To guarantee projects that including the paving of sidewalks, green areas and public lighting of Lot C-5-B on
Cerro Colorado street S-7321.
Parque Arauco S.A.
Chile
354621-7
11-06-2014
182
05-07-2015
0.4%
UF
619.00
30-day notice
I. Mun. de las Condes
69.070.400-5
To guarantee the traffic mitigation works resulting from the Parque Arauco cinemas on Presidente Kennedy
avenue and Rosario Norte street, level 6147.
Parque Arauco S.A.
Chile
354620-9
11-06-2014
182
05-07-2015
0.4%
UF
9,000.00
30-day notice
I. Mun. de las Condes
69.070.400-5
To guarantee the urban planning works in front of Presidente Kennedy avenue, Boulevard 2 Parque Arauco S.A.
P.E. 245/05 and level S/7321.
Parque Arauco S.A.
Chile
354632-2
11-06-2014
182
05-07-2015
0.4%
UF
1,210.00
30-day notice
I. Mun. de las Condes
69.070.400-5
To guarantee the mitigation works EISTU P.E. No. 229/2001 Cerro Colorado (Park Deck) on Presidente
Kennedy avenue and Rosario Norte street (level S-6147).
Parque Arauco S.A.
Chile
352234-4
08-21-2014
364
08-20-2015
0.4%
UF
1,000.00
30-day notice
I. Mun. de la Quilicura
69.071.300-4
To guarantee the Certificates referring to mitigation works, 1. Traffic lights, 1.1, 1.2 and guarantee the
performance of point 7. Ex- Post, both measures contained in EISTU "Mall Quilicura (V2)", Approved by ORD.
SM/GU/No. 6594, dated September 10, 2008.
Parque Arauco S.A.
Chile
353805-2
10-10-2014
364
10-09-2015
0.4%
UF
4,122.00
30-day notice
Chilquinta Energía
96.813.520-1
To guarantee payment of the power supply requested on Ramón Barros Luco street N. 105, in the city of San
Antonio, V Region.
Parque Arauco S.A.
Chile
353807-8
10-10-2014
364
10-09-2015
0.4%
UF
4,033.00
30-day notice
Chilquinta Energía
96.813.520-1
To guarantee payment of the power supply requested on the eastern side of Víctor Pacheco Altamirano street
N. 150, Ex 22, in the city of San Antonio, V Region.
Parque Arauco S.A.
Security
376720
08-21-2013
1197
11-30-2016
0.5%
UF
1,498.51
30-day notice
Serv. Región Metrop.
61.812.000-7
To guarantee the adequate execution and preservation of the project for the paving and rain water access for
Mall Arauco Quilicura, code No. 30.586, Quilicura township
Parque Arauco S.A.
Security
400426
04-08-2014
1179
06-30-2017
0,5%
UF
474.48
30-day notice
Serv. Región Metrop.
61.812.000-7
To guarantee the adequate execution and preservation of the project for the paving and rain water access and
mitigation works for Mall Arauco Maipú Modificación, code No.38813, Maipu township.
ESTADOS FINANCIEROS CONSOLIDADOS
Details of the bank guarantees valid on December 31, 2014 were the following:
41
The details of the outstanding obligations and covenants on December
31, 2014, were the following:
BANK
COMPANY
Series K
bonds
Parque Arauco
S.A.
Series H
bond
Parque Arauco
S.A.
Bond
Inmuebles
Comerciales
del Peru
First
issuance
bonds
Second
issuance
bonds
Third
issuance
bonds
Inmuebles
Panamericana
S.A.
Inmuebles
Panamericana
S.A.
Inmuebles
Panamericana
S.A.
CAPITAL M$
LAUNCH
MATURITY
TYPE OF
COVENANTS
LIMIT
2014 CURRENT
73,881,300
09-01-2014
09-01-2039
Net financial
liability/Equity
<=1.5
0.47
1.03
EBITDA/FE
>=2.5
3.31
0.81
03-01-2029
Total liability/
Equity
<=1.4
0.81
0.59
EBITDA/FE
>=2.5
3.31
0.81
Total liability/
Equity
<=1.4
0.81
0.59
EBITDA/FE
>=2.5
3.31
0.81
Revenue from
rentals/Debt
service
>=2.0
5.25
3.25
Deferred liabilities
/Equity
<=1.75
0.83
0.92
EBITDA/ Debt
service
>=1.75
3.10
1.35
Deferred liabilities
/Equity
>=2.0
5.25
3.25
EBITDA/Debt
service
<=1.75
0.83
0.92
EBITDA/ Debt
service
>=1.75
3.10
1.35
Revenue from
rentals / Debt
service
>=2.0
5.25
3.25
Deferred
liabilities/Equity
<=1.75
0.83
0.92
EBITDA/ Debt
service
>=1.75
3.10
1.35
11,279,212
10,768,236
15,823,732
15,109,901
12,203,995
03-01-2008
06-30-2010
01-20-2012
01-20-2012
01-20-2012
06-30-2020
01-20-2027
01-20-2032
01-20-2032
TOTAL
MARGIN
139,066,376
The Series H bonds have Mall Parque Arauco Kennedy as collateral. In the case
of the bank loans held with Banco Security, the collateral corresponds to the strip
centers on Colón avenue, Luis Pasteur avenue and strip center Pajaritos. Mall
Parque Caracolí is used as collateral for the loans held with Bancolombia. The ICP
bond has the fixed asset and flows from ICP as collateral. IPSA´s first, second and
third issue bonds have the MegaPlaza Norte shopping mall as collateral. All the
covenants mentioned in the table above table have been adhered to.
(+) Revenues from sales
(-) Cost of sales
(+) Gains from the derecognizing of financial assets measured at their
amortized costs.
(-) Losses from the derecognizing of financial assets measured at their
amortized costs.
(+) Other revenues by function
(-) Administrative expenses
(+) Depreciation
(+) Amortization
(=) EBITDA
CONSOLIDATED FINANCIAL STATEMENTS
Determination of EBITDA
42
Details of direct collateral:
LENDER TO
RECEIVE
COLLATERAL
BOOK VALUE
M$
PENDING
BALANCES ON
12.31.2014
M$
PENDING
BALANCES ON
12.31.2013
M$
NAME
RELATIONSHIP
TYPE OF
COLLATERAL
Banco Estado
Parque
Arauco S.A.
()
Mortgage (*)
Parque Arauco
Kennedy
-
-
11,677,344
Banco Estado
Parque
Arauco S.A.
()
Mortgage (*)
Parque Arauco
Kennedy
-
-
44,074,767
Banco
Santander
Parque
Arauco S.A.
()
Mortgage (*)
Parque Arauco
Kennedy
-
-
6,831,666
Banco de Chile
Parque
Arauco S.A.
()
Mortgage (*)
Parque Arauco
Kennedy
-
-
29,725,450
Santander G
Series Bonds
Parque
Arauco S.A.
()
Mortgage (**)
Parque Arauco
Kennedy
291,231,263
-
15,760,829
Santander H
Series Bonds
Parque
Arauco S.A.
()
Mortgage
Parque Arauco
Kennedy
291,231,263
11,758,642
54,815,936
Banco Crédito
del Peru
Inm.
Subsidiary of
Panamericana
subsidiary
S.A.
Trust
Centro Com.
Megaplaza
33,903,607
22,455,030
77,278,170
Bancolombia
S.A
Inm.
Subsidiary of
Bucaramanga
subsidiary
S.A.S
Trust
Parque Caracolí
122,308,255
42,370,802
24,791,889
ASSETS
(*) In June 2014 the collateral for Banco Estado, Banco Santander and Banco de
Chile was cancelled.
(**) On December 29, 2014 the early redemption of all Seres G bonds was
carried out.
CONTINGENT LIABILITIES:
• On November 20, 2013 Parque Arauco S.A., was notified of the ruling
condemning it to pay M$570,051 for the alleged violation of article
145 L.G.U.C (General Law for Urban Planning and Construction). On
November 26, 2013 an appeal was filed against the ruling, which was
admitted for proceeding as of December 17 of that same year by the
Court of Appeals of Santiago. On March 17, 2014 a non-applicability
appeal was filed for the unconstitutionality of article 20 of the L.G.U.C.,
which was admitted on April 10, 2014, and the process and ruling on
the aforementioned appeal were suspended until the basis of the appeal
for non-applicability is resolved.
• On September 29, 2005, Parque Arauco S.A. was notified of a file for
compensation for damages for extracontractual liability for a project to
be carried out in Arauco Maipú, which in the end was not carried out.
Initially, the claimants requested the payment of M$954,650. The first
instance ruling (April 2013) was favorable for Parque Arauco, rejecting
the entirety of the claim. On July 3, 2014. The Court of Appeals of
Santiago partially revoked the first instance ruling, condemning Parque
Arauco S.A. to pay M$135,092. On November 5, 2014, Parque Arauco
S.A. appealed against the second instance ruling, whose resolution is
still pending.
CONSOLIDATED FINANCIAL STATEMENTS
• The arbitration claim filed by Compañía de Seguridad Privada S.A.,
requesting the forced fulfillment of a service contract entered into
on January 2, 2011, as well as compensation for the alleged damages
resulting from early termination of said contract, was resolved by the
arbitration tribunal on June 19, 2013, partially sustaining the claim
filed by Compañía de Seguridad S.A.. Both parties filed a complaint
against the judgment, which were dismissed by the Court of Appeals of
Santiago. Subsequently, on November 22, 2013, a preliminary ruling for
the withholding of money was issued for the amount of the arbitration
sentence of M$232,057, in order to ensure the indemnification action
that had been brought against Compañía de Seguridad S.A.. To date, the
lawsuit is at the discussion stage. In response to this action, Compañía
de Seguridad Privada S.A. replied and filed a counterclaim for damages.
Currently, the reply to the main lawsuit has been concluded and the
resolution of the dilatory defense filed by Parque Arauco S.A. regarding
the counterclaim are still pending.
43
NOTE 17
PROVISIONS FOR EMPLOYEE BENEFITS
The details of the provisions for current employee benefits on December 31, 2014 and 2013, were
the following:
CURRENT
Shares in profits and bonds
12.31.2014
M$
12.31.2013
M$
2,421,437
1,787,833
Vacations
667,222
516,785
Other employee benefits
423,168
64,390
3,511,827
2,369,008
PROVISIONS FOR EMPLOYEE BENEFITS
NOTE 18
TRADE ACCOUNTS AND OTHER ACCOUNTS PAYABLE
Trade Accounts and Other Accounts Payable on December 31, 2014 and 2013, were the following:
CURRENT
Suppliers(1)
Notes payable
Retentions
Misc. Lenders
Dividends payable
TOTALS
12.31.2014
M$
12.31.2013
M$
10,967,262
10,833,779
8,446
7,994
56,916
576,360
278,458
514,938
17,068,120
12,797,610
28,379,202
24,730,681
(1) The details of suppliers up-to-date on their payments and those with outstanding payments as of
December 31, 2014 and 2013 were the following:
A) SUPPLIERS UP-TO-DATE ON PAYMENTS
TYPE OF
SUPPLIER
Goods
Services
TOTAL
UP TO 30
DAYS
M$
31-60
M$
61-90
M$
91-120
M$
121-365
M$
366 AND
ABOVE
M$
TOTAL M$
12.31.2014
8,809,092
-
-
-
-
-
8,809,092
2,127,174
-
-
-
-
-
2,127,174
10,936,266
-
-
-
-
-
10,936,266
TOTAL M$
12.31.2013
6,825,655
AMOUNT PER PAYMENT PERIOD
TYPE OF
SUPPLIER
UP TO 30
DAYS
M$
31-60
M$
61-90
M$
91-120
M$
121-365
M$
366 AND
ABOVE
M$
Goods
6,719,485
106,170
-
-
-
-
Services
TOTAL
3,235,111
57,167
-
-
-
-
3,292,278
9,954,596
163,337
-
-
-
-
10,117,933
CONSOLIDATED FINANCIAL STATEMENTS
AMOUNT PER PAYMENT PERIOD
44
B) SUPPLIERS WITH OUTSTANDING PAYMENTS
AMOUNT PER PAYMENT PERIOD
TYPE OF
SUPPLIER
UP TO 30
DAYS
M$
31-60
M$
61-90
M$
91-120
M$
121-365
M$
366 AND
ABOVE
M$
TOTAL M$
12.31.2014
Goods
-
-
-
-
-
-
-
Services
-
20,372
10,624
-
-
-
30,996
TOTAL
-
20,372
10,624
-
-
-
30,996
AMOUNT PER PAYMENT PERIOD
TYPE OF
SUPPLIER
UP TO 30
DAYS
M$
31-60
M$
61-90
M$
91-120
M$
121-365
M$
366 AND
ABOVE
M$
TOTAL M$
12.31.2014
Goods
-
246,186
110,344
100,702
95,435
-
552,667
Services
-
112,647
24,517
24,699
1,316
-
163,179
TOTAL
-
358,833
134,861
125,401
96,751
-
715,846
NOTE 19
OTHER NON-FINANCIAL LIABILITIES
Other Non-Financial Liabilities as of December 31, 2014 and 2013, were the following:
CURRENT
M$
ITEM
Deferred revenues from leases and
collateral
Cash collateral (1)
Other liabilities
OTHER NON-FINANCIAL
LIABILITIES
NON-CURRENT
M$
12.31.2014
CURRENT
M$
NON-CURRENT
M$
12.31.2013
993,889
3,897,364
870,634
3,227,007
-
6,308,911
-
5,706,596
722,611
121,047
3,052,777
-
1,716,500
10,327,322
3,923,411
8,933,603
(1)Collateral is retained until the expiration of the lease contracts and is then returned to the clients.
NOTE 20
The details and changes of funds in the Net Equity accounts are shown
in the Consolidated Statement of Changes in Equity.
term structured institutional bonds, so as to ensure that the company´s
revenue flows and financial obligations are similar in duration.
I) CAPITAL
II) INFORMATION ON COMPANY OBJECTIVES, POLICIES AND
PROCESSES FOR CAPITAL MANAGEMENT
The Company invests free cash flow in financial instruments such as
purchase agreements, mutual funds, term deposits, etc., depending on
what is most convenient in terms of risk-return ratio and liquidity. With
respect to the financing policy, it consists of attracting capital markets
resources in order to finance projects that enable Company growth,
complying with the covenants set forth in outstanding obligations.
As for financial liabilities, these mainly consist of bank loans and long-
Investment and Financing Policies
The Company has an investment program whose policy is aimed at
maintaining its leadership in the sector and developing profitable projects,
endowing its activity with differentiating factors and developing new
areas of business. At the same time, it keeps adequate levels of working
capital and debt in accordance with its cash flows.
CONSOLIDATED FINANCIAL STATEMENTS
EQUITY
45
NOTE 20 EQUITY (CONTINUED)
Dividend Policy
At the closing of the financial statements, the company determined the following distributable net income:
DESCRIPTION
12.31.2014
M$
12.31.2013
M$
Net income attributable to the Company equity holders
57,749,400
55,280,589
(20,749,103)
(20,073,888)
7,074,893
5,310,568
44,075,190
40,517,269
Fair value adjustment investment properties
Determined deferred tax
DISTRIBUTABLE PROFITS OF COMPANY EQUITY HOLDERS
III) MOVEMENT OF ORDINARY SHARE CAPITAL TO ORDINARY SHARES
SINGLE SERIES
DESCRIPTION OF SHARE CAPITAL CLASS TO ORDINARY
SHARES
12.31.2014
12.31.2013
Outstanding shares, opening balance
702,747,054
702,747,054
Options executed during the period/financial year
115,000,000
-
OUTSTANDING SHARES, CLOSING BALANCE
817,747,054
702,747,054
3,250,000
3,250,000
On December 7, 2010 the Company purchased 3,250,000 shares of its
own stock. This share packet was used to implement a compensation
plan for the Company’s executives, which was unanimously approved
by the Extraordinary Shareholders Meeting held on April 22, 2010. The
main features of the compensation program are:
1) The purchase, charged to retained earnings, as required by law, of
own shares representing no more than 2% of all shares issued,
subscribed and paid.
the secondary market a representative amount of up to 1% of the
Company’s share capital within any 12-month period, without the
need to apply the pro-rata procedure.
3) The duration of the Program would be of 5 years as of the date of
the Extraordinary Shareholders Meeting approving it. The Board of
Directors decides the amount and timing for the purchase of the
Company’s own shares by virtue of the Program.
The totality of own shares purchased by virtue of the program for the
purchase of shares (the “Program”) must be fully paid and free of
any liens and encumbrances.
4) The purchase price of the shares is to be determined by the Company’s
Board of Directors on each occasion if the corresponding Extraordinary
Shareholders Meeting agrees to delegate this faculty as per the
conditions of article 27 A of Law No.18.046.
2) The purchase of the shares must be carried out in accordance with
article 27 B of Law No.18.046. That is, they are to be purchased
through stock exchange systems that allow the pro-rata purchase of
received shares. If these are not sufficient for the target percentage
to be purchased, the reminder may be purchased in the secondary
market. Notwithstanding the above, the Extraordinary Shareholders
Meeting would authorize the Board of Directors to purchase in
5) The aim of Program would be to establish a Compensation Plan, and
the corresponding Extraordinary Shareholders Meeting could give
ample powers to the Board to freely determine all matters related to
the Compensation Plan, as well as to determine all matters related to
the options that are part of the plan, including the periods when the
options are valid, the timeframes, opportunities and other for their
acceptance or execution, the employees that shall benefit, the number
CONSOLIDATED FINANCIAL STATEMENTS
TREASURY SHARES
46
NOTE 20 EQUITY (CONTINUED)
III) MOVEMENT OF CAPITAL IN COMMON SHARES OF COMMON
STOCK (CONTINUED)
6) The shares must be sold within 5 years at the most, as of the moment
of their purchase, as per the conditions of article 27 C of Law
No.18.046, to the employees of the Company and its subsidiaries
that the Company’s highest executives have determined fulfill the
necessary requirements to be beneficiaries of the Compensation Plan.
A preferential offer of shares to the shareholders is not mandatory.
The requirements for being a beneficiary of the Compensation Plan
will be previously established by the Board of Directors. The sale to
the employees shall be carried out at a price equal to the price paid
should the shares be bought by the Company, which will be specified
in UF (“Unidades de Fomento”). The price must be paid in cash. In
the event that the shares purchased by virtue of the Program are not
sold to the Company’s employees within the specified timeframe,
the capital will be decreased. The Company officially awarded the
Program to its beneficiaries as of March 2011, date officially registered
as per the provisions of IFRS 2.
On April 7, 2011 the Extraordinary Shareholders Meeting authorized
the sale of 3,250,000 of its own shares, which were initially meant
to be allocated to a compensation plan for Company executives. The
shares were not sold, but used for compensation plans, as specified in
the following paragraph iv).
At the same Extraordinary Shareholders Meeting a capital increase was
approved for the amount of $110,000,000,000, through the issue of
100,000,000 registered shares, of a single series and without par value.
From this issue, 10,000,000 were allocated to compensation plans for
Company executives.
On July 21, 2011 at an Extraordinary Shareholders Meeting, it was agreed
to set the issuance price of each of the 90,000,000 ordinary payment
shares at $950, without par value, to be offered preferentially to the
Company’s shareholders, charged against the capital increase agreed
by the Extraordinary Shareholders Meeting held on April 7, 2011.
To date, the totality of the 90,000,000 ordinary payment shares have
been subscribed and paid.
On October 23, 2013 at an Extraordinary Shareholders Meeting a capital
increase was approved for $115,000,000,000, through the issue of
127,777,777 registered paid shares, single series and without nominal
value. From that issue, 12,777,777 shares are allocated to compensation
plans for Company executives.
At the Board of Directors’ session held on October 30, 2013, it was
agreed to set the issuance price of each of the 115,000,000 ordinary
payment shares at $900, without par value, offered preferentially to the
Company’s shareholders, charged to the capital increase agreed at an
Extraordinary Shareholders Meeting held on October 23, 2013.
On February 7, 2014, the Superintendencia de Valores y Seguros approved
and registered in the Securities Record under No. 994, the issue of
127,777,777 paid shares, single series and without nominal value, for the
amount of M$115,000,000 , charged to the capital increase approved
at an Extraordinary Shareholders Meeting held on October 23, 2013.
The legal preferential option period was executed between February 18
and March 19, 2014, where the Company shareholders subscribed and
paid 109,445,566 shares for a total of $98,501,009,400, at the price
of $900 per share. The remaining 5,554,434 sharer were auctioned
at the Santiago Stock Exchange on March 21, 2014 at the unit price of
$971 per share.
To date the totality of 115,000,000 ordinary payment shares have been
subscribed and paid.
This placing of shares generated a share premium through the sale of
shares of M$200,964, which includes the placing expenses.
IV) COMPENSATION PLANS BASED ON SHARES
The Company’s Board of Directors, during its session held on July 25, 2013,
and as per the agreements adopted at the Extraordinary Shareholders
Meetings held on April 22, 2010 and April 7, 2011, resolved to grant the
Company’s main executives options to subscribe a total of 13,250,000
Company shares. Part of those options were charged to the 3,250,000
shares purchased by the Company on December 7, 2010. The strike price
was set at the equivalent amount in pesos, legal tender, at UF 0.0536
per share (Plan 1 B). The shares may be subscribed within a maximum
term that ends on September 7, 2015.
The other part of the options was granted to be charged against the
10,000,000 shares allocated for this purpose, in accordance with what
was agreed at the Extraordinary Shareholders Meeting held on April
7, 2011. In this case, the strike price was set at the equivalent amount
in pesos, legal tender, at UF 0.0433 per share (Plan 2 B). The options
accrue annually starting on July 2013 until December of 2015, and the
exercise term ends on January 7, 2016 at the latest.
The cost of these options was calculated by applying the Black Scholes
method to estimate the fair value as of their granting and the amount
totals M$ 1,229,402, as provided by IRFS 2 (Payments Based on Shares).
Additionally, the Company’s Board of Directors, during its session held
on June 26, 2014, and in accordance with the agreements adopted at the
Extraordinary Shareholders Meeting held on October 23, 2013, resolved
to grant the Company’s main executives, options to subscribe a total of
12,777,777 Company shares. The strike price was set at the equivalent
amount in pesos, legal tender, at UF 0.0382 per share. The options
may be exercised as of June 2016, and the maximum term of exercise
is September 28, 2018. The cost of these options was calculated by
applying the Binomial method to estimate the fair value since they were
granted, and the amount totals M$2,245,565 as per IRFS 2 (Payments
Based on Shares).
CONSOLIDATED FINANCIAL STATEMENTS
of shares that shall be subject to the options offered and all other
related matters. The above complies with the agreements adopted
by the Extraordinary Shareholders Meeting and the legal provisions.
47
NOTE 20 EQUITY (CONTINUED)
IV) COMPENSATION PLANS BASED ON SHARES (CONTINUED)
Entry data used for the valuation of granted options:
PLANS
SHARE WEIGHTED
AVERAGE PRICE
STRIKE PRICE
EXPECTED
VOLATILITY %
OPTION LIFE
EXPECTED
DIVIDENDS %
RISK FREE
INTEREST %
Plan 1 B
955.05
1,248.59
27.72
2.1 years
2.4
0.465
Plan 2 B
955.05
1,008.65
52.54
2.3 years
2.4
0.465
Plan 3 B
1,050.70
926.64
20.96
4.2 years
2.7
0.352
The accounting effect is accrued on a linear basis as of the moment
of their granting and until their maturity, thus placing the effect as a
profit or loss under the item Remunerations. These plans mature in
September and November 2015 and in September 2018. The effect
on the result on December 31, 2014 corresponds to M$ 1,095,621 and
its counterparty is recorded as Equity under the item Other reserves.
V) UNREALIZED FAIR VALUE ADJUSTMENT (NET OF DEFERRED TAX)
On December 31, 2014 the Company records as Equity earnings
resulting from the fair value adjustment on investment properties,
which are not part of the distributable profits while they are not
realized. The following table shows the cumulative amount on
December 31, 2014:
AMOUNT M$
First implementation (01/01/2009)
61,027,858
Financial year 2009
28,434,100
Financial year 2010
12,028,082
Financial year 2011
9,692,241
Financial year 2012
5,054,461
Financial year 2013
14,763,320
Financial year 2014
13,674,210
TOTAL ACCUMULATED FAIR VALUE ADJUSTMENT ON 12/31/2014:
144,674,272
CONSOLIDATED FINANCIAL STATEMENTS
PERIOD
48
NOTE 20 EQUITY (CONTINUED)
VI) CHANGES IN EQUITY
12.31.2014
M$
12.31.2013
M$
5,327,072
7,274,274
825,851
17,292
(424,665)
(1,982,226)
451
17,732
Other
1,337,308
-
CHANGE
1,738,945
(1,947,202)
CLOSING BALANCE
7,066,017
5,327,072
FOREIGN EXCHANGE DIFFERENCES RESERVE
12.31.2014
M$
12.31.2013
M$
(15,550,284)
(16,554,724)
Interest in Chile
25,768,943
11,316,499
Interest in Peru
(7,851,485)
(8,279,838)
Interest in Colombia
(12,322,157)
(2,032,221)
5,595,301
1,004,440
(9,954,983)
(15,550,284)
OPENING BALANCE
Interest in Chilean companies
Interest in Parque Arauco Peru S.A.
Interest in Parque Arauco Colombia S.A.
OPENING BALANCE
CHANGE
CLOSING BALANCE
INCREASE
(DECREASE) FROM
TRANSFERS AND
OTHER CHANGES
12.31.2014
RETAINED
OTHER MISC.
EARNINGS
RESERVES (ACCUM.) LOSSES
M$
M$
12.31.2013
MINORITY
INTEREST
M$
RETAINED
OTHER MISC.
EARNINGS
RESERVES (ACCUM.) LOSSES
M$
M$
MINORITY
INTEREST
M$
Interest in Chilean
companies
825,851
(6,412,969)
-
17,292
109,529
-
Interest in Parque
Arauco Peru S.A.
(424,665)
(2,111,092)
-
(1,982,226)
1,450,384
-
Interest in Parque
Arauco Colombia
S.A.
451
84,786
-
17,732
(193,108)
-
Other (1) (2)
1,337,308
(7,508,569)
14,237,386
-
-
12,420,844
CHANGE
1,738,945
(15,947,844)
14,237,386
(1,947,202)
1,366,805
12,420,844
(1) Changes in Minority Interest correspond to the effect of Equity from subsidiaries where Parque Arauco S.A.´s interest is not 100%.
(2) See Note 14 number 1.
CONSOLIDATED FINANCIAL STATEMENTS
OTHER MISC. RESERVES
49
NOTE 20 EQUITY (CONTINUED)
VI) CHANGES IN EQUITY (CONTINUED)
On December 31, 2014 and 2013 Changes in Minority Interest were the following:
PERCENTAGE
SHARE
M$
TOTAL
ASSETS
M$
TOTAL
LIABILITIES
M$
COMPANY
EQUITY
M$
PERCENTAGE EQUITY
INTEREST
M$
COMPANY
INCOME
M$
PERCENTAGE INCOME
INTEREST
M$
ID NO.
COMPANY NAME
COUNTRY
FUNCTIONAL CURRENCY
20423264617
Inmuebles Panamericana S.A.
Peru
Peruvian Nuevo Sol
50.00%
236,486,523
120,317,759
116,168,764
58,778,578
10,182,398
4,745,513
20513561106
Sociedad de Inversiones y Gestión S.A.C.
Peru
Peruvian Nuevo Sol
50.00%
14,484,855
4,433,738
10,051,204
5,021,190
283,033
141,517
20524082374
Inversiones Bairiki S.A.C.
Peru
Peruvian Nuevo Sol
50.00%
2,360,611
1,232,641
1,127,971
563,495
(812,019)
(406,010)
20550880041
Strip Centers del Peru S.A.
Peru
Peruvian Nuevo Sol
49.00%
26,872,200
8,461,536
18,410,664
9,013,384
(1,723,254)
(844,394)
20543346218
Inmobiliaria Kotare S.A.C.
Peru
Peruvian Nuevo Sol
50.00%
1,171,081
61,216
1,109,865
554,450
(46,103)
(23,052)
900.079.790-5
Eje Construcciones S.A.S.
Colombia
Colombian Peso
45.00%
38,869,087
2,469,564
36,399,524
16,365,547
(1,342,257)
(604,016)
900.252.139-0
Inversiones Inmob. Arauco Alameda S.A.
Colombia
Colombian Peso
45.00%
77,297,780
11,508,662
65,789,118
29,579,368
(6,019,121)
(2,708,604)
76.111.950-8
Desarrollos Inmobiliarios San Antonio S.A.
Chile
Chilean Peso
49.00%
27,263,919
32,206,408
(5,607,865)
(2,747,854)
(732,934)
(359,138)
96.547.010-7
Inmobiliaria Paseo de la Estación S.A.
Chile
Chilean Peso
17.00%
112,307,707
37,666,009
73,793,011
12,544,812
10,703,461
1,819,588
76.187.012-2
Centros Comerciales Vecinales Arauco Express S.A.
Chile
Chilean Peso
49.00%
39,082,957
14,451,876
24,631,081
12,069,228
2,594,328
1,271,220
76.263.221-7
Centro Comercial Arauco Express Ciudad Empresarial S.A.
Chile
Chilean Peso
20.00%
4,664,067
2,155,963
2,508,104
501,621
53,728
10,746
142,243,819
3,043,370
PERCENTAGE
SHARE
M$
TOTAL
ASSETS
M$
TOTAL
LIABILITIES
M$
COMPANY
EQUITY
M$
PERCENTAGE EQUITY
INTEREST
M$
COMPANY
INCOME
M$
PERCENTAGE INCOME
INTEREST
M$
ID NO.
COMPANY NAME
COUNTRY
FUNCTIONAL CURRENCY
20423264617
Inmuebles Panamericana S.A.
Peru
Peruvian Nuevo Sol
50.00%
193,624,116
100,703,001
93,823,128
46,911,564
10,669,445
5,334,724
20513561106
Sociedad de Inversiones y Gestión S.A.C.
Peru
Peruvian Nuevo Sol
50.00%
12,986,594
3,963,840
9,000,303
4,500,151
(136,871)
(68,435)
20524082374
Inversiones Bairiki S.A.C.
Peru
Peruvian Nuevo Sol
50.00%
2,165,503
365,855
1,795,170
897,585
(525,534)
(262,767)
20550880041
Strip Centers del Peru S.A.
Peru
Peruvian Nuevo Sol
49.00%
16,602,147
4,658,900
11,913,528
5,837,629
278,208
136,322
20543346218
Inmobiliaria Kotare S.A.C.
Peru
Peruvian Nuevo Sol
50.00%
1,086,895
18,426
1,065,811
532,905
(31,228)
(15,614)
900.079.790-5
Eje Construcciones S.A.S.
Colombia
Colombian Peso
45.00%
44,071,231
1,427,063
42,538,058
19,142,126
(9,835,997)
(4,426,199)
900.252.139-0
Inversiones Inmob. Arauco Alameda S.A.
Colombia
Colombian Peso
45.00%
73,795,320
13,928,235
59,718,121
26,873,154
(16,540,577)
(7,443,260)
76.111.950-8
Desarrollos Inmobiliarios San Antonio S.A.
Chile
Chilean Peso
49.00%
26,832,757
31,798,766
(6,415,190)
(3,143,443)
(626,597)
(307,033)
96.547.010-7
Inmobiliaria Paseo de la Estación S.A.
Chile
Chilean Peso
17.00%
102,092,411
28,701,611
72,520,675
12,328,515
11,504,644
1,955,789
76.187.012-2
Centros Comerciales Vecinales Arauco Express S.A.
Chile
Chilean Peso
62.46%
26,993,700
10,015,314
16,978,387
10,604,227
(388,126)
(242,413)
76.263.221-7
Centro Comercial Arauco Express Ciudad Empresarial S.A.
Chile
Chilean Peso
20.00%
4,085,735
1,692,486
2,393,249
478,650
373,085
TOTAL AS OF 12.31.2013
124,963,063
74,617
(5,264,269)
CONSOLIDATED FINANCIAL STATEMENTS
TOTAL AS OF 12.31.2014
50
NOTE 21
EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net earnings of
the year attributable to the parent company by the weighted average
number of ordinary outstanding shares during the year.
a) The basic and diluted earnings (losses) per share on December 31, 2014 and 2013 were the following:
12.31.2014
M$
BASIC
12.31.2014
M$
DILUTED
12.31.2013
M$
BASIC
12.31.2013
M$
DILUTED
Earnings (loss) attributable to equity holders
57,749,400
57,749,400
55,280,589
55,280,589
Earnings available to common shareholders
57,749,400
57,749,400
55,280,589
55,280,589
788,152
812,214
699,497
712,747
73,27
71,10
79,03
77,56
Weighted average number of shares
BASIC EARNINGS (LOSSES) PER SHARE
NOTE 22
ORDINARY INCOME AND COSTS
Income from operations corresponds to the billing of minimum and
percentage-based leases, basic services and other services, provided at
the closing of each period and are recorded on a linear basis in accordance
with valid contracts with clients.
Below are income and costs details as of December 31, 2014 and 2013:
ORDINARY INCOME AND COSTS
12.31.2014
M$
12.31.2013
M$
Ordinary income
125,886,312
107,318,830
(28,606,149)
(22,307,202)
97,280,163
85,011,628
Cost of sales
GROSS MARGIN
On December 31, 2014 and 2013 total income from leases, approximately 84% and 83% corresponds to fixed leases and
16% and 17% correspond to variable leases, respectively.
2014
M$
2013
M$
Income from leases
93,220,081
92,489,372
Other income
32,666,231
14,829,458
125,886,312
107,318,830
INCOME FROM ORDINARY ACTIVITIES
TOTAL ORDINARY INCOME
CONSOLIDATED FINANCIAL STATEMENTS
The composition of income from ordinary activities for each period is:
51
Below are the main costs of sales and administrative expenses:
2014
M$
2013
M$
Depreciation
(715,082)
(578,042)
Amortization
(2,873,720)
(2,203,448)
Remunerations
(16,385,615)
(12,635,147)
(959,495)
(1,021,252)
Other (*)
(22,987,562)
(19,205,948)
TOTAL COSTS AND EXPENSES
(43,921,474)
(35,643,837)
COSTS AND EXPENSES
Provisions for bad debts
(*) Includes net of income costs and expenses related to the collection of “shared expenses” from tenants.
Income from Operating assets and Projected assets on December 31, 2014 and 2013 was the following:
ITEM
OPERATING ASSETS
M$
PROJECTED ASSETS
M$
12.31.2014
M$
125,507,646
378,666
125,886,312
(40,848,858)
(3,072,616)
(43,921,474)
OPERATING ASSETS
M$
PROJECTED ASSETS
M$
12.31.20143
M$
107,028,486
290,344
107,318,830
(34,584,004)
(1,059,833)
(35,643,837)
Revenue from ordinary activities
Administrative costs/expenses
ITEM
Revenue from ordinary activities
Administrative costs/expenses
NOTE 23
EMPLOYEE BENEFITS AND EXPENSES
Employee benefits and expenses on December 31, 2014 and 2013, were the following:
STAFF EXPENSES
12.31.2014
M$
12.31.2013
M$
Wages and salaries
(13,105,089)
(10,749,833)
(2,026,169)
(1,611,171)
Short-term benefits to employees
Other staff expenses
TOTAL
(1,254,357)
(274,143)
(16,385,615)
(12,635,147)
NOTE 24
Financial income is derived from the investment of Company cash
surpluses, mainly in term deposits, repurchase agreements, mutual funds
and trust funds. On December 31, 2014 and 2013, Parque Arauco S.A.
showed average cash surpluses of M$115,730,383 and M$77,261,719,
with an annual effective rate of 4.0% and 5.2%, which generated income
of M$4,605,580 and M$3,983,554, respectively.
On December 31, 2014 and 2013 the Company held financial obligations in
Unidades de Fomento (inflation linked currency in Chile) for M$288,678,432
and M$251,372,220, in Chilean pesos for M$25,447,014 and M$50,400,996,
in U.S. dollars for M$49,697,294 and M$ 43,023,819, in Colombian
pesos for M$40,525,107 and M$ 37,505,347 and in Peruvian Nuevo
Sol for M$53,652,759 and M$50,663,612, respectively. These financial
obligations were on average M$455,240,882 and M$398,280,436 on
December 31, 2014 and 2013, with an effective annual rate of 5.67%
and 4.81%, generating financial expenses of M$25,825,240 and M$
19,150,007, respectively.
ITEMS
Financial income
Financial expenses
12.31.2014
M$
12.31.2013
M$
4,605,580
3,983,554
(25,825,240)
(19,150,007)
CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL INCOME AND FINANCIAL EXPENSES
52
NOTE 25
EFFECT OF FOREIGN EXCHANGE RATE VARIATION
Results from exchange rate differences correspond to the weighted result
of changes from foreign currency assets and liabilities during the period.
12.31.2014
M$
12.31.2013
M$
889,035
(279,889)
5,595,301
1,004,440
12.31.2014
M$
12.31.2013
M$
(758,405)
(1,200,730)
2,671,788
784,059
(1,024,348)
136,782
889,035
(279,889)
12.31.2014
M$
12.31.2013
M$
Depreciation
(715,082)
(578,042)
Amortization
(2,873,720)
(2,203,448)
TOTAL
(3,588,802)
(2,781,490)
ITEMS
12.31.2014
UF
12.31.2013
UF
Financial institutions
(4,929,502)
(3,410,225)
Bonds
(2,893,746)
(3,027,803)
Other (1)
(2,116,224)
(4,503,777)
TOTAL
(9,939,472)
(10,941,805)
1,317,54
468,81
M$
M$
(13,095,652)
(5,129,628)
ITEMS
Foreign exchange differences
Foreign exchange differences reserves (1)
EXCHANGE DIFFERENCES
Financial obligations
Transactions related companies
Other
TOTAL
(1) Changes in Foreign exchange differences reserves are shown in Note 20 vi).
NOTE 26
DEPRECIATION AND AMORTIZATION
ITEMS
NOTE 27
INCOME (LOSS) FOR INDEXED ASSETS AND LIABILITIES
UF VARIATION
INCOME (LOSS) FOR INDEXED ASSETS AND
LIABILITIES
(1) Corresponds mainly to collateral, term deposits, effects on derivative instruments and others.
CONSOLIDATED FINANCIAL STATEMENTS
Income (loss) for indexed assets and liabilities corresponds to the
weighted results from changes in assets and liabilities in inflation linked
currency that occurred during the period.
53
NOTE 28
OTHER INCOME (LOSSES)
CONCEPTOS
12.31.2014
M$
12.31.2013
M$
Tax expenses
(599,962)
(1,287,931)
Compensation and settlements expenses
(50,090)
(1,889,594)
Patents investment companies
(195,022)
(299,829)
Expenses on projects and analysis
(614,452)
(1,202,054)
Legal and judicial process expenses
(270,065)
(2,350,472)
Other
(322,558)
(250,261)
(2,052,149)
(7,280,141)
Other income
591,945
886,283
TOTAL INCOME
591,945
886,283
(1,460,204)
(6,393,858)
TOTAL EXPENSES
TOTAL OTHER INCOME (LOSSES)
CONSOLIDATED FINANCIAL STATEMENTS
For Other income and/or losses, the Company has presented all items
and transactions where the effect is separate from the Company’s
common operation and that cannot be assigned to other items of the
Income Statement. The items are the following:
54
NOTE 29
FOREIGN CURRENCY
LIQUID ASSETS (PRESENTATION)
12.31.2014
M$
12.31.2013
M$
Liquid assets
110,061,086
68,945,796
$ Re-adjustable
861
891
$ Non re-adjustable
33,342,267
23,271,355
Dollars
51,463,883
15,159,348
Peruvian Nuevo Sol
21,969,660
24,844,857
3,284,328
5,669,263
Colombian Peso
Argentine Peso
87
82
110,061,086
68,945,796
861
891
$ Non re-adjustable
33,342,267
23,271,355
Dollars
51,463,883
15,159,348
Peruvian Nuevo Sol
21,969,660
24,844,857
3,284,328
5,669,263
87
82
Cash and cash equivalents
$ Re-adjustable
Colombian Peso
Argentine Peso
Other current financial assets
-
-
$ Re-adjustable
-
-
$ Non re-adjustable
-
-
Dollars
-
-
Peruvian Nuevo Sol
-
-
Colombian Peso
-
-
Argentine Peso
-
-
26,464,024
25,072,725
928,823
1,275,783
SHORT AND LONG-TERM ACCOUNTS RECEIVABLE (PRESENTATION)
$ Re-adjustable
$ Non re-adjustable
12,445,694
13,298,519
Dollars
6,841,270
5,797,249
Peruvian Nuevo Sol
5,527,184
3,757,339
721,053
943,835
Colombian Peso
Argentine Peso
Trade and other accounts receivable, current
19,959,586
18,886,264
781,457
67,276
12,445,694
13,294,026
1,741,292
1,455,508
4,270,090
3,125,619
721,053
943,835
-
-
Rights receivable, non-current
326,999
808,364
$ Re-adjustable
142,557
666,316
-
-
$ Re-adjustable
$ Non re-adjustable
Dollars
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
$ Non re-adjustable
Dollars
184,442
142,048
Peruvian Nuevo Sol
-
-
Colombian Peso
-
-
Argentine Peso
Accounts receivable from related parties, current
$ Re-adjustable
-
-
6,177,439
4,835,906
4,809
-
-
4,493
Dollars
4,915,536
4,199,693
Peruvian Nuevo Sol
$ Non re-adjustable
1,257,094
631,720
Colombian Peso
-
-
Argentine Peso
-
-
Accounts receivable from related parties, non-current
-
542,191
$ Re-adjustable
-
542,191
$ Non re-adjustable
-
-
Dollars
-
-
Peruvian Nuevo Sol
-
-
Colombian Peso
-
-
Argentine Peso
-
-
1,277,232,495
1,107,937,255
8,202,612
9,070,324
846,330,515
663,554,837
Remaining assets (Presentation)
$ Re-adjustable
$ Non re-adjustable
Dollars
10,757,477
134,640,368
Peruvian Nuevo Sol
288,251,709
202,193,538
Colombian Peso
123,690,123
98,478,173
59
15
1,413,757,605
1,201,955,776
Argentine Peso
Total Assets (Presentation)
$ Re-adjustable
$ Non re-adjustable
9,132,296
10,346,998
892,118,476
700,124,711
Dollars
69,062,630
155,596,965
Peruvian Nuevo Sol
315,748,553
230,795,734
Colombian Peso
127,695,504
105,091,271
146
97
Argentine Peso
CONSOLIDATED FINANCIAL STATEMENTS
Short and long-term accounts receivable (Presentation)
55
12.31.2013
M$
UP TO
90 DAYS
AMOUNT
FROM 91
DAYS TO 1 YEAR
AMOUNT
UP TO
90 DAYS
AMOUNT
FROM 91
DAYS TO 1 YEAR
AMOUNT
Current liabilities, Total
24,970,552
70,680,827
41,607,571
34,456,190
CURRENT LIABILITIES (PRESENTATION)
$ Re-adjustable
14,149,859
37,610,241
8,345,389
21,885,510
$ Non re-adjustable
6,765,436
23,546,879
25,876,522
6,791,147
Dollars
1,373,758
1,730,928
1,643,044
779,288
240,623
5,299,725
3,549,972
2,754,994
2,440,876
2,493,054
2,192,644
2,245,251
Peruvian Nuevo Sol
Colombian Peso
-
-
-
-
Other financial liabilities, current
Argentine Peso
20,835,525
31,219,682
21,855,887
13,869,898
$ Re-adjustable
13,963,383
13,792,568
8,222,009
9,415,940
$ Non re-adjustable
3,346,594
14,038,538
11,967,060
2,239,687
1,324,117
1,475,776
145,807
586,216
Dollars
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
-
-
577,157
-
2,201,431
1,912,800
943,854
1,628,055
-
-
-
-
Bank loans
18,580,253
29,656,134
18,313,714
11,059,662
$ Re-adjustable
12,838,461
13,511,029
5,402,800
7,191,920
$ Non re-adjustable
3,346,594
14,038,538
11,967,060
2,239,687
193,767
193,767
-
-
-
-
-
-
2,201,431
1,912,800
943,854
1,628,055
-
-
-
-
Collateralized obligations
1,389,798
1,068,697
3,264,404
1,813,134
$ Re-adjustable
1,033,565
-
2,687,247
1,813,134
-
-
-
-
Dollars
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
$ Non re-adjustable
356,233
1,068,697
-
-
Peruvian Nuevo Sol
Dollars
-
-
577,157
-
Colombian Peso
-
-
-
-
Argentine Peso
-
-
-
-
Financial leases
865,474
494,851
277,769
997,102
$ Re-adjustable
91,357
281,539
131,962
410,886
-
-
-
-
774,117
213,312
145,807
586,216
$ Non re-adjustable
Dollars
Peruvian Nuevo Sol
-
-
-
-
Colombian Peso
-
-
-
-
Argentine Peso
-
-
-
-
4,135,027
39,461,145
19,751,684
20,586,292
186,476
23,817,673
123,380
12,469,570
3,418,842
9,508,341
13,909,462
4,551,460
49,641
255,152
1,497,237
193,072
Peruvian Nuevo Sol
240,623
5,299,725
2,972,815
2,754,994
Colombian Peso
239,445
580,254
1,248,790
617,196
-
-
-
-
Other Current Liabilities
$ Re-adjustable
$ Non re-adjustable
Dollars
Argentine Peso
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2014
M$
56
NON-CURRENT LIABILITIES (PRESENTATION)
Non-current liabilities, Total
$ Re-adjustable
12.31.2013
M$
13 MONTHS TO
5 YEARS
AMOUNT
MORE THAN
5 YEARS
AMOUNT
13 MONTHS TO
5 YEARS
AMOUNT
MORE THAN
5 YEARS
AMOUNT
281,199,747
256,779,394
192,240,952
298,344,075
83,316,170
156,951,249
74,395,978
108,405,573
$ Non re-adjustable
86,540,081
50,385,322
108,138,067
58,925,137
Dollars
48,565,040
122,701
5,265,033
38,054,812
Peruvian Nuevo Sol
42,490,744
31,596,071
4,017,077
58,025,116
20,287,712
17,724,051
424,797
34,933,437
-
-
-
-
204,955,454
216,317,738
151,503,781
254,148,324
45,565,502
140,296,291
56,910,077
88,709,368
71,617,542
26,578,990
89,860,074
43,165,327
48,453,460
122,701
4,733,630
37,253,737
20,631,759
31,596,071
-
50,086,455
18,687,191
17,723,685
-
34,933,437
-
-
-
-
175,248,679
101,549,714
129,115,832
149,788,013
Colombian Peso
Argentine Peso
Other financial liabilities, non-current
$ Re-adjustable
$ Non re-adjustable
Dollars
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
Bank loans
$ Re-adjustable
42,231,821
57,247,039
39,255,758
35,627,818
$ Non re-adjustable
71,617,542
26,578,990
89,860,074
43,165,327
Dollars
42,712,125
-
-
36,061,431
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
-
-
-
-
18,687,191
17,723,685
-
34,933,437
-
-
-
-
Collateralized obligations
21,995,713
113,697,620
15,096,334
101,066,505
$ Re-adjustable
1,363,954
82,101,549
15,096,334
50,980,050
$ Non re-adjustable
-
-
-
-
Dollars
-
-
-
-
20,631,759
31,596,071
-
50,086,455
Colombian Peso
Peruvian Nuevo Sol
-
-
-
-
Argentine Peso
-
-
-
-
Financial leases
7,711,062
1,070,404
7,291,615
3,293,806
$ Re-adjustable
1,969,727
947,703
2,557,985
2,101,500
$ Non re-adjustable
Dollars
Peruvian Nuevo Sol
-
-
-
-
5,741,335
122,701
4,733,630
1,192,306
-
-
-
-
Colombian Peso
-
-
-
-
Argentine Peso
-
-
-
-
Other Non-current liabilities
76,244,293
40,461,656
40,737,171
44,195,751
$ Re-adjustable
37,750,668
16,654,958
17,485,901
19,696,205
$ Non re-adjustable
14,922,539
23,806,332
18,277,993
15,759,810
Dollars
Peruvian Nuevo Sol
Colombian Peso
Argentine Peso
111,580
-
531,403
801,075
21,858,985
-
4,017,077
7,938,661
1,600,521
366
424,797
-
-
-
-
-
CONSOLIDATED FINANCIAL STATEMENTS
12.31.2014
M$
57
NOTE 30
SUMMARIZED FINANCIAL STATEMENTS FROM THE MAIN
SUBSIDIARIES
12.31.2014
M$
COMERCIAL
ARAUCO LTDA.
CONSTRUCTORA Y
ADMINISTRADORA
UNO S.A.
PARQUE ARAUCO
INTERNACIONAL S.A.
TODO
ARAUCO S.A.
DESARROLLOS
INMOBILIARIOS SAN
ANTONIO S.A.
INVERSIONES PARQUE
ARAUCO UNO S.A.
PLAZA
EL ROBLE S.A.
ARAUCO
EXPRESS S.A.
INVERSIONES PARQUE
ARAUCO DOS S.A.
INMOBILIARIA PASEO
DE LA ESTACIÓN S.A.
NUEVA
ARAUCO SPA
Current assets
-
3,048,255
110,018,925
2,716,240
939,849
77,340
2,160,111
4,354,920
464,171
15,491,569
67,973
Non-current assets
-
111,599,205
466,150,211
55,034,403
26,324,070
6,709,112
41,365,005
39,321,423
27,207,727
96,816,138
363,675
TOTAL ASSETS
-
114,647,460
576,169,136
57,750,643
27,263,919
6,786,452
43,525,116
43,676,343
27,671,898
112,307,707
431,648
Current liabilities
2,187
2,309,547
23,707,651
46,845,994
701,542
421
560,580
2,719,767
550,986
10,333,573
776,788
-
34,005,367
175,700,289
4,818,756
31,504,866
5,987,588
20,888,600
15,823,874
21,170,903
27,332,436
-
2,187
36,314,914
199,407,940
51,664,750
32,206,408
5,988,009
21,449,180
18,543,641
21,721,889
37,666,009
776,788
Revenues
-
37,044,597
46,226,804
6,616,927
5,165,928
96,404
6,519,290
4,997,365
7,070,450
19,979,463
-
Expenses
(849)
(15,322,885)
(41,662,442)
(9,363,996)
(5,977,552)
(463,102)
(8,243,957)
(2,392,291)
(4,470,745)
(9,281,361)
(339,696)
NET PROFIT (LOSS)
(849)
21,721,712
4,564,362
(2,747,069)
(811,624)
(366,698)
(1,724,667)
2,605,074
2,599,705
10,698,102
(339,696)
CONSTRUCTORA Y
COMERCIAL ADMINISTRADORA UNO
ARAUCO LTDA.
S.A.
SOC. DE INVERSIONES
INTERNACIONALES
PARQUE ARAUCO S.A.
TODO
ARAUCO S.A.
DESARROLLOS
INMOBILIARIOS SAN
ANTONIO S.A.
INVERSIONES PARQUE
ARAUCO UNO S.A.
PLAZA
EL ROBLE S.A.
ARAUCO
EXPRESS S.A.
INVERSIONES PARQUE
ARAUCO DOS S.A.
INMOBILIARIA PASEO
DE LA ESTACIÓN S.A.
PARQUE ARAUCO
COLOMBIA S.A.
Non-current liabilities
TOTAL LIABILITIES
12.31.2013
M$
Current assets
-
3,150,845
59,845,593
1,306,568
1,213,809
50,226
1,273,295
3,645,347
3,483,840
8,764,139
6,977,951
Non-current assets
-
91,621,960
250,237,690
37,349,944
25,618,948
6,572,962
35,557,582
25,869,095
25,041,274
93,328,272
133,928,012
TOTAL ASSETS
-
94,772,805
310,083,283
38,656,512
26,832,757
6,623,188
36,830,877
29,514,442
28,525,114
102,092,411
140,905,963
Current liabilities
1,338
2,349,846
16,174,503
22,128,704
697,765
97,434
1,195,765
623,048
359,445
5,403,128
6,102,820
-
33,942,379
120,751,577
7,557,060
31,101,001
5,414,880
12,883,084
11,436,067
25,028,247
23,298,483
36,572,493
1,338
36,292,225
136,926,080
29,685,764
31,798,766
5,512,314
14,078,849
12,059,115
25,387,692
28,701,611
42,675,313
Revenues
-
16,689,145
24,035,248
3,513,594
4,598,948
-
5,171,145
2,239,233
2,822,490
16,318,807
7,699,182
Expenses
(692)
(3,533,094)
(14,626,387)
(146,898)
(5,312,633)
(327,325)
(4,329,549)
(2,554,521)
(4,250,476)
(4,871,493)
(28,656,940)
NET PROFIT (LOSS)
(692)
13,156,051
9,408,861
3,366,696
(713,685)
(327,325)
841,596
(315,288)
(1,427,986)
11,447,314
(20,957,758)
Non-current liabilities
TOTAL LIABILITIES
CONSOLIDATED FINANCIAL STATEMENTS
The financial statements of the main subsidiaries on December 31, 2014 and 2013, are the following:
58
NOTE 31
OPERATIONAL DIVISIONS
The Company management decided to segment the business by
geographical regions, separating its operations in Chile, Peru, and
Colombia. Such organization enables for each division to be managed
individually at the country level. The determining factors for this decision
are measurements of each country´s position in comparison to Chile,
and other specific commercial factors such as the contractual terms and
conditions established with the operators in each country, the currency
for operation, and the maturity of the business.
The Others segment includes holding companies related to operations
outside Chile. Since it is investment that determines the position held
in companies in Argentina and other countries outside of Chile, assets
are primarily advance payments for project development.
12.31.2014
CLASSIFIED STATEMENT OF
FINANCIAL POSITION
Current assets
Non-current assets
Current liabilities
CHILE
M$
PERU
M$
COLOMBIA
M$
OTHER
M$
TOTAL
M$
51,717,532
103,066,087
4,965,631
1,987,207
161,736,457
785,870,938
317,827,478
141,377,740
6,944,992
1,252,021,148
71,943,728
15,894,852
7,520,427
292,372
95,651,379
362,278,852
136,675,358
39,024,861
70
537,979,141
CHILE
M$
PERU
M$
COLOMBIA
M$
OTHER
M$
TOTAL
M$
Current assets
50,285,030
59,823,888
6,974,696
23,969
117,107,583
Non-current assets
707,969,212
249,876,914
126,730,039
272,028
1,084,848,193
53,801,124
16,146,287
6,051,981
64,369
76,063,761
335,660,034
119,024,941
34,320,604
1,579,448
490,585,027
CHILE
M$
PERU
M$
COLOMBIA
M$
OTHER
M$
TOTAL
M$
82,050,615
33,481,256
10,354,441
-
125,886,312
(16,327,559)
(8,426,596)
(3,851,994)
-
(28,606,149)
65,723,056
25,054,660
6,502,447
-
97,280,163
Income tax
(5,141,783)
(5,560,012)
(776,428)
(266,177)
(11,744,400)
Other income (losses)
8,368,726
(2,633,166)
(10,721,001)
1,462,108
(3,523,333)
Financial income
2,628,991
1,689,394
274,462
12,733
4,605,580
Non-current liabilities
12.31.2013
CLASSIFIED STATEMENT OF
FINANCIAL POSITION
Current liabilities
Non-current liabilities
12.31.2014
INCOME STATEMENT
Revenue from ordinary activities
Cost of sales
GROSS PROFIT
Financial expenses
(15,319,783)
(7,073,481)
(3,431,976)
-
(25,825,240)
NET PROFIT (LOSS)
56,259,207
11,477,395
(8,152,496)
1,208,664
60,792,770
CONSOLIDATED FINANCIAL STATEMENTS
The main items are: Current assets, Cash and cash equivalents, Trade
and other accounts receivable, and Current tax assets and Non-current
assets, Investment properties, Liabilities; Other current and non-current
financial liabilities (Financial obligations).
59
12.31.2013
INCOME STATEMENT
CHILE
M$
PERU
M$
COLOMBIA
M$
OTHER
M$
TOTAL
M$
75,584,386
24,035,262
7,699,182
-
107,318,830
(12,805,099)
(6,894,877)
(2,607,226)
-
(22,307,202)
GROSS PROFIT
62,779,287
17,140,385
5,091,956
-
85,011,628
Income tax
(3,677,917)
(5,790,186)
700,351
(43,561)
(8,811,313)
Other income (losses)
11,046,668
2,183,575
(24,546,601)
298,816
(11,017,542)
Financial income
2,430,202
1,121,811
421,161
10,380
3,983,554
(11,486,379)
(5,033,368)
(2,630,260)
-
(19,150,007)
61,091,861
9,622,217
(20,963,393)
265,365
50,016,320
12.31.2014
CHILE
M$
PERU
M$
COLOMBIA
M$
OTHER
M$
TOTAL
M$
Depreciation
(361,750)
(260,338)
(92,994)
-
(715,082)
Amortization
(2,316,883)
(515,003)
(41,834)
-
(2,873,720)
12.31.2013
CHILE
M$
PERU
M$
COLOMBIA
M$
OTHER
M$
TOTAL
M$
Depreciation
(381,984)
(170,494)
(25,336)
(228)
(578,042)
Amortization
(1,747,621)
(443,794)
(12,033)
-
(2,203,448)
Revenue from ordinary activities
Cost of sales
Financial expenses
NET PROFIT (LOSS)
Other items
NOTE 32
OPERATING LEASES
Parque Arauco S.A. and its subsidiaries have operating lease contracts
with the operators and tenants of their shopping centers. The contracts
yield minimum revenues from leases and also variable income. The latter
is determined based on the sales of the lessee.
ON 12.31.2014
M$
0N 12.31.2013
M$
Less than one year
104,859,280
95,416,387
From 1 to 5 years
434,814,269
397,194,623
More than 5 years
573,703,503
529,633,927
1,113,377,052
1,022,244,937
MINIMUM PAYMENTS
TOTAL
The main obligations of Parque Arauco S.A. as a tenant are under the financial lease
regime and are shown in Notes 13 and 15.
CONSOLIDATED FINANCIAL STATEMENTS
Future minimum payments receivable per operating lease contracts
outstanding on December 31, 2014 and 2013 are estimated at the
following amounts:
60
NOTE 33
MANAGEMENT OF FINANCIAL RISKS
The Corporate Finance Management Team is responsible for obtaining
financing for the activities carried out by each company and for the
management of exchange rate risk, interest rate risk, liquidity risk, inflation
risk and credit risk. These functions operate as per a framework of policies
and procedures which are regularly revised to fulfill the objective of
managing financial risk resulting from business needs.
According to the financial risk management policies, the Company
uses derivative instruments with the sole purpose of hedging exposure
to exchange rate and interest rate risks resulting from the Company’s
operations and its financing sources.
The Company does not acquire derivatives for the purpose of speculation.
EXCHANGE RATE RISKS
The Company is exposed to exchange rate risks from: a) its net exposure
to assets and liabilities in foreign currency and b) cash flows form the
subsidiaries in Peru and Colombia as dividends. The Company’s greatest
exposure to exchange rate risk is the variation of the Chilean peso with
respect to the US dollar, Colombian peso and Peruvian Nuevo Sol.
On December 31, 2014, the Company held financial obligations in US
dollars for M$49,697,294 which represents 10.85% of all financial
obligations, M$40,525,107 in Colombian pesos, which represent 8.85%
and M$53,652,759 in Peruvian Nuevo Sol which represent 11.71%. The
remaining debt, of M$288,678,432 is in inflation indexed Chilean pesos
and M$25,447,014 in Chilean pesos.
The main accounting effects derived from the variation of US dollars with respect to Chilean pesos (1% appreciation), are the following:
NET AMOUNT
(ASSET-LIABILITY)
USD
Peruvian Nuevo Sol
Colombian Peso
M$
CURRENCY
OF ORIGIN (M)
US$
(M)
VARIATION + CH$/US$
IN 1% (M$)
17,270,203
28,463
28,463
(43,771)
236,121,390
1,178,203
394,048
2,361,214
84,749,811
337,955,464
141,434
847,498
-
-
-
-
338,141,404
339,162,131
563,945
3,164,941
Argentine Peso
TOTALS
The parities S$/US$, ARG/US$ and COL/US$ are assumed to be constant.
NET AMOUNT
(ASSET-LIABILITY)
USD
Peruvian Nuevo Sol
Colombian Peso
TOTALS
M$
CURRENCY OF
ORIGIN (M)
US$
(M)
VARIATION +
S$/US$ IN 1 %
VARIATION +
COL/US$ IN
1%
VARIATION
+ ARS/US$
IN 1 %
17,270,203
28,463
28,463
NA
NA
NA
236,121,390
1,178,203
394,048
(2,415,036)
NA
NA
84,749,811
337,955,464
141,434
NA
(866,816)
NA
563,945
(2,415,036)
(866,816)
-
338,141,404
The above table considers Foreign Currency net values on December 31, 2014, which could vary significantly over time.
CONSOLIDATED FINANCIAL STATEMENTS
The main accounting effects of a variation in the exchange rates of Peruvian Nuevo Sol and Colombian Peso with respect to the dollar (1% increase
in exchange rates), are the following:
61
EXCHANGE RATE SENSITIVITY ANALYSIS
The effect of exchange rate differences recognized in the consolidated
statements of comprehensive income for the period ended on December
31, 2014, related to assets and liabilities in foreign currency totals
M$889,035.
INTEREST RATE RISK
Interest rate risk comes mainly from the Company’s financing sources
and its investments on Tradable Securities.
In previous periods, the main exposure to interest rate risk has been related
to obligations with variable interest rates. However, on December 31,
2014, less than 20% of the Company’s obligations have variable interest
rates. Consequently, on December 31, 2014, our financing structure
consists of more than 80% fixed interest rate debt.
The terms and conditions of the Company’s obligations on December
31, 2014, including exchange rates, interest rate, maturity and effective
interest rate are specified under Other financial liabilities (Note 15).
INFLATION RISK
Risk of inflation comes mainly from the Company’s sources of financing.
The main exposure is related to debt in Unidades de Fomento with a
fixed interest rate. On December 31, 2014 the Company’s total debt was
of M$288,678,432 with fixed interest rates in Unidades de Fomento.
However, Company revenues are indexed to inflation through a natural
hedge. The Company does not actively hedge against these variations
in cash flow expected through variations in inflation.
CREDIT RISK
CREDIT RISKS FOR FINANCIAL INSTRUMENTS HELD WITH
FINANCIAL INSTITUTIONS
The Company has policies that limit exposure to counterparty credit risk
with respect to financial institutions and these are monitored frequently.
Consequently, the Company does not have a significant concentration of
credit risk with financial institutions on December 31, 2014. Maximum
exposure to credit risk from these financial assets is the book vale of
these assets shown in the Statement of Financial Position. The financial
instruments held with banks and financial institutions, such as demand
deposits investments in mutual funds, reverse repos instruments and
derivative financial instruments are very low risk.
LIQUIDITY RISK
The Company manages its liquidity risk at a consolidated level, and the
principal source of liquidity is operational cash flows. Additionally, the
Company´s unused lines of financing and cash and cash equivalents
available for fulfilling its short and long-term obligations.
To manage its short-term liquidity, the Company operates based on
forecasted cash flows for a rolling 36-month period. On December 31,
2014, the Company has unused lines of credit with Banks for a total of
M$39,117,680, a credit line for trade purposes, available and registered
for M$24,627,100 and cash and cash equivalents for M$110,061,086
for managing its short-term liquidity needs.
Based on current operating performance and its liquidity position, the
Company estimates that cash flows from operations and available cash
will be sufficient to finance its working capital, maintenance CAPEX,
the payment of interest, the payment of dividends and debt payment
requirements and investments for the upcoming 12 months and the
foreseeable future.
The credit risk the Company is exposed to comes mainly from accounts
receivable with clients.
ACCOUNTS RECEIVABLE
The Company’s policy is to provision 100% of the accounts receivable
more than 180 days outstanding; 80% of those outstanding between
150 day and 180 days; 60% of those outstanding between 120 days and
150 days; and 40% for those outstanding from 90 to 120 days.
CONSOLIDATED FINANCIAL STATEMENTS
Credit risk related to accounts receivable with clients is managed and
monitored by the Credit and Collections Committee. The Company has
a large client base that is subject to the policies, procedures and controls
established by the Company. Outstanding accounts receivable are
monitored regularly. Additionally, the Company establishes a collateral
policy that its clients are subject to. This collateral is held almost entirely
in the form of bank guarantees or cash.
62
NOTE 34
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE
EQUITY METHOD
Parque Arauco S.A. has a contract agreement with Inmobiliaria Mall
Viña del Mar S.A. under which its economic activity has been subject
to joint control. As of January 1, 2013, Parque Arauco S.A., ceased to
proportionally consolidate as per the new IFRS11 provision.
On December 31, 2014 and 2013, as per IFRS 11, investment under
Joint Agreements in Inmobiliaria Mall Viña del Mar S.A. is shown as
Investments in associates accounted for using the equity method (IAS
28) and its details were the following:
Statement of Financial Position
ID NO.
ASSOCIATE NAME
COUNTRY CURRENCY
% SHARE
ASSOCIATE
EQUITY
M$
12.31.2014
M$
96.863.570-0 Inmobiliaria Mall Viña del Mar S.A.
Chile
Chilean Peso
33.33%
154,509,733
51,503,244
20514833088 Inmobiliaria Nueva Centuria S.A.C.
Peru
Soles
50.00%
(164,255)
(82,127)
20381471374
Peru
Soles
50.00%
3,277,436
1,638,718
Peru
Soles
50.00%
1,051,597
525,799
Inmobiliaria San Silvestre S.A.C.
20563672766 Administradora Camino Real S.A.C.
TOTALS
ID NO.
53,585,634
ASSOCIATE NAME
COUNTRY CURRENCY
% SHARE
ASSOCIATE
EQUITY
M$
12.31.2013
M$
96.863.570-0 Inmobiliaria Mall Viña del Mar S.A.
Chile
Peso chileno
33,33%
146,682,449
48,894,150
20514833088 Inmobiliaria Nueva Centuria S.A.C.
Peru
Soles
50,00%
(696)
(348)
20381471374
Peru
Soles
50,00%
1,481,170
740,584
Inmobiliaria San Silvestre S.A.C.
TOTALES
49,634,386
ID NO.
ASSOCIATE NAME
COUNTRY CURRENCY
% SHARE
ASSOCIATE
EQUITY
M$
12.31.2014
M$
96.863.570-0 Inmobiliaria Mall Viña del Mar S.A.
Chile
Chilean Peso
33.33%
26,573,290
8,857,765
20514833088 Inmobiliaria Nueva Centuria S.A.C.
Peru
Soles
50.00%
(205,360)
(102,680)
20381471374
Peru
Soles
50.00%
(8,213)
(4,106)
Inmobiliaria San Silvestre S.A.C.
TOTALS
ID NO.
8,750,979
ASSOCIATE NAME
COUNTRY CURRENCY
% SHARE
ASSOCIATE
EQUITY
M$
12.31.2013
M$
96.863.570-0 Inmobiliaria Mall Viña del Mar S.A.
Chile
Chilean Peso
33.33%
30,374,814
10,124,938
20514833088 Inmobiliaria Nueva Centuria S.A.C.
Peru
Soles
50.00%
(200,870)
(100,435)
20381471374
Peru
Soles
50.00%
(722,133)
(361,067)
TOTALS
Inmobiliaria San Silvestre S.A.C.
9,663,436
CONSOLIDATED FINANCIAL STATEMENTS
Statement of Comprehensive Income
63
NOTE 34 INVESTMENTS IN ASSOCIATES ACCOUNTED FOR
USING THE EQUITY METHOD (CONTINUED)
On December 31, 2014 and 2013 the summarized financial information for the associated subsidiaries was the following:
INMOBILIARIA VIÑA DEL
MAR S.A.
M$
INMOBILIARIA NUEVA
CENTURIA S.A.C.
M$
INMOBILIARIA SAN
SILVESTRE S.A.C.
M$
ADMINISTRADORA
CAMINO REAL S.A.C.
M$
280,079,990
1,376,720
3,247,416
1,061,993
Total Liabilities
125,570,257
1,585,952
-
8,163
Cash and cash
equivalents
28,656,413
5,519
17,267
432,410
Other financial liabilities,
current
9,665,067
-
-
-
Other financial liabilities,
non-current
73,086,387
-
-
-
Revenues
31,951,576
1,927
76
-
Expenses
12.31.2014
Balance
Total Assets
Income (Loss)
(5,378,286)
(208,427)
(8,286)
-
Depreciation and
Amortization
(246,564)
-
-
-
Financial income
906,579
-
-
-
Financial expenses
(1,249,184)
(91,458)
(587)
-
Income tax
(6,179,560)
-
-
-
INMOBILIARIA VIÑA DEL
MAR S.A.
M$
INMOBILIARIA NUEVA
CENTURIA S.A.C.
M$
INMOBILIARIA SAN
SILVESTRE S.A.C.
M$
ADMINISTRADORA
CAMINO REAL S.A.C.
M$
12.31.2013
Balance
Total Assets
229,590,746
1,265,342
2,968,865
Total Liabilities
82,908,298
1,236,504
1,487,804
Cash and cash
equivalents
8,488,569
19,783
2
Other financial liabilities,
current
5,676,188
-
-
Other financial liabilities,
non-current
44,482,991
-
-
Revenues
41,685,480
477
310
Expenses
(11,310,666)
(201,348)
(722,443)
Depreciation and
Amortization
(218,111)
-
-
Financial income
680,599
477
310
(1,457,615)
(84,000)
(205)
(5,925,801)
-
292,590
Financial expenses
Income tax
CONSOLIDATED FINANCIAL STATEMENTS
Income (Loss)
64
NOTE 35
ASSETS AND LIABILITIES HELD FOR HEDGING
Hedging instruments details on December 31, 2014 and 2013, under Other financial liabilities were the following:
BANK
VALUE OF
CONTRACT
M$
COMPANY
TYPE OF
CONTRACT
MATURITY
TYPE OF
CONTRACT
ACCOUNT
AFFECTED
CCS
Arauco Express
CCTE
Security
9,104,808
II QUART. 2020
Cross Currency Swap
Asset
CCS
Arauco Express
CCTE
BCI
3,016,481
III QUART. 2019
Cross Currency Swap
Liability
Asset
Liability
CCS
Inm Paseo Estación
CCTE
BCI
14,199,789
III QUART. 2022
Cross Currency Swap
Asset
Liability
S
Inmuebles Panamericana S.A.
SWAPMX
BCI
35,501,200
I QUART. 2017
Swap
CCS
P Arauco S.A
CCTE
SANTANDER
11,534,688
II QUART. 2020
Cross Currency Swap
CCS
P Arauco S.A
CCTE
BCI
13,472,513
I QUART. 2017
Cross Currency Swap
Asset
Liability
Asset
Liability
Asset
Liability
CCS
P Arauco S.A
CCTE
BCI
24,218,788
IV QUART. 2021
Cross Currency Swap
Asset
Liability
CCS
P Arauco S.A
CCTE
CHILE
26,945,025
I QUART. 2017
Cross Currency Swap
Asset
Liability
CCS
P Arauco S.A
CCTE
CHILE
13,472,513
I QUART. 2017
Cross Currency Swap
CCS
P Arauco S.A
CCTE
ESTADO
41,088,581
I QUART. 2018
Cross Currency Swap
S
Todo Arauco S.A
CCTE
Internacional
2,034,118
I QUART. 2024
Swap
Asset
Liability
Asset
Liability
Asset
Liability
TOTAL LIABILITIES
TOTAL ASSETS
TOTAL NET
S: Swap
FW: Forward
CCS: Cross Currency Swap
CCTE: Hedge contract for expected transactions
EFFECT ON INCOME
TOTAL
MTM
M$
EFFECT ON
EQUITY
M$
UNREALIZED
M$
REALIZED
$
-
-
-
-
(1,370,846)
(624,216)
(746,630)
78,763
-
-
-
-
(70,000)
(8,094)
(61,906)
-
-
-
-
-
(1,989,396)
(775,062)
(1,214,334)
(517,927)
-
-
-
-
(253,830)
134,405
(388,235)
(276,633)
-
-
-
-
(1,050,760)
(62,973)
(987,787)
(20,179)
-
-
-
-
(1,352,389)
(119,990)
(1,232,399)
(547,883)
-
-
-
-
(2,749,163)
(26,459)
(2,722,704)
639,350
-
-
-
-
(2,492,273)
(209,687)
(2,282,586)
(153,591)
-
-
-
-
(1,246,137)
(104,844)
(1,141,293)
(76,795)
-
-
-
-
(2,559,623)
(2,820,159)
260,536
-
-
-
-
-
(193,377)
(191,276)
(2,101)
68,683
(15,327,794)
(4,808,355)
(10,519,439)
(806,212)
-
-
-
-
(15,327,794)
(4,808,355)
(10,519,439)
(806,212)
CONSOLIDATED FINANCIAL STATEMENTS
TYPE OF
DERIVATIVE
12.31.2014
65
NOTE 35 ASSETS AND LIABILITIES HELD FOR HEDGING
(CONTINUED)
BANK
VALUE OF
CONTRACT
M$
COMPANY
TYPE OF
CONTRACT
MATURITY
TYPE OF
CONTRACT
ACCOUNT
AFFECTED
CCS
P Arauco S.A.
CCTE
Santander
11,264,164
II QUART. 2020
Cross Currency Swap
Asset
CCS
P Arauco S.A.
CCTE
Chile
26,945,025
I QUART. 2017
Cross Currency Swap
Liability
P Arauco S.A.
CCTE
BCI
13,472,513
I QUART. 2017
Cross Currency Swap
P Arauco S.A.
CCTE
BCI
13,472,513
I QUART. 2017
Cross Currency Swap
P Arauco S.A.
CCTE
BCI
24,218,788
IV QUART. 2021
Cross Currency Swap
CCS
P Estación S.A.
CCTE
BCI
14,199,789
III QUART. 2022
Cross Currency Swap
S
Todo Arauco S.A.
CCTE
Internacional
1,882,231
I QUART. 2024
Swap
Security
9,104,808
II QUART. 2020
Cross Currency Swap
Panamericana S.A.
SWAPMX
BCI
35,50,200
I QUART. 2017
Swap
TOTAL ASSETS
TOTAL NET
S: Swap
FW: Forward
CCS: Cross Currency Swap
CCTE: Hedge contract for expected transactions
(1,903,674)
(296,988)
(1,606,686)
326,505
(951,837)
(148,494)
(803,343)
163,252
(1,143,980)
(171,291)
(972,689)
(493,676)
(1,581,214)
(321,491)
(1,259,723)
678,275
(1,103,809)
(408,438)
(332,596)
(441,194)
(247,652)
(246,843)
(809)
38,004
(481,222)
(269,311)
(211,911)
80,559
Asset
Liability
TOTAL LIABILITIES
66,150
Asset
Liability
S
(736,513)
Asset
Liability
CCTE
(149,222)
Asset
Liability
Arauco Express S.A.
(885,735)
Asset
Liability
CCS
REALIZED
$
Asset
Liability
CCS
UNREALIZED
M$
Asset
Liability
CCS
EFFECT ON
EQUITY
M$
Asset
Liability
CCS
EFFECT ON INCOME
TOTAL
MTM
M$
(112,773)
(78,965)
(33,808)
-
(8,411,896)
-
-
-
-
-
-
-
(8,411,896)
(2,091,043)
(5,958,078)
(417,875)
CONSOLIDATED FINANCIAL STATEMENTS
TYPE OF
DERIVATIVE
12.31.2013
66
NOTE 36
FAIR VALUE MEASUREMENT
Several of the policies and accounting disclosures of the Company
require determining the fair value of the financial and non-financial assets
and liabilities. The fair values have been determined for the purposes
of valuation and/or disclosure on the basis of the following methods:
rate is applied which reflects the specific risks inherent to annual net
cash flows.
1.- INTANGIBLE ASSETS
The fair value of term contracts in a foreign currency is based on its
quoted market price, if available. The fair value of interest rate swaps is
based on quotations from mediators.
Intangible assets are measured at fair value at the moment of their
purchase and they are revaluated if there is evidence that their value has
suffered impairment, whereby they are reviewed periodically.
a) Brands:
The fair value of the brands purchased through a combination of
businesses is based on the estimation of the value which the presence
of the intangible asset contributes to the flows. With this purpose, the
value of the brand has been estimated on the basis of weighing two
methods of measurement. The first determines the incremental value
resulting from the brand’s ownership, comparing discounted cash flows
with and without it (‘with and without approach’). The second method is
based on a current estimate for obtaining and/or creating the intangible
asset from the resources that would be used or given in order to obtain
the asset (cost method).
3.- DERIVATIVES
4.- INTEREST RATES USED TO DETERMINE FAIR VALUE
Interest rates used to discount estimated cash flows, both in the valuation
of investment properties as in the valuation of intangibles are the following:
ASSETS/
LIABILITIES
NOMINAL
INTEREST RATE
12.31.2014
NOMINAL
INTEREST RATE
12.31.2014
Investment
properties
8.5% - 10.5%
9% - 14%
Intangible assets
8.5% - 10.5%
11.61%
In the flows determined for the fair value of assets, the effect of tax on the operations
of shopping centers (the rates shown are after taxes) has been considered.
b) Client portfolio:
The fair value of the client portfolio acquired through joint-ventures is
determined by using the excess earnings method over various periods,
whereby the asset is valued after deducting a fair return on the assets
that are part of the creation of the related cash flows.
c) Other intangibles:
The fair value of backlog contracts has been determined based on income
generated by current contracts, with their respective maturity dates. A
credit risk percentage was defined, applied as cost, and the flows were
discounted at a rate close to the risk-free rate.
Fair values are based on market values, which correspond to the amount
estimated at which the properties could be exchanged between a buyer
and seller on the valuation date, after an adequate marketing process
during which both parties have acted knowingly and voluntarily.
When there are no valid prices in an active market, the valuation is
prepared taking into account the total amount of cash flows expected
to be received from the lease of property. To value the property, a return
CONSOLIDATED FINANCIAL STATEMENTS
2.- INVESTMENT PROPERTIES
67
5.- FAIR VALUE HIERARCHY
For the fair value measurements recognized in the Statement of Financial Position, the entity discloses the fair value hierarchy level where the
totality of the fair value measurements are classified.
The following table shows financial instruments at their fair value, using the valuation method:
LEVEL 1
M$
LEVEL 2
M$
LEVEL 3
M$
12.31.2014
M$
Intangible assets
-
-
14,750,880
14,750,880
Investment properties
-
-
1,090,631,422
1,090,631,422
Derivatives (Net liabilities)
-
(15,327,794)
-
(15,327,794)
LEVEL 1
M$
LEVEL 2
M$
LEVEL 3
M$
12.31.2013
M$
Intangible assets
-
-
14,987,965
14,987,965
Investment properties
-
-
947,838,880
947,838,880
Derivatives (Net liabilities)
-
(8,411,896)
-
(8,411,896)
ASSETS /LIABILITIES
ASSETS /LIABILITIES
NOTE 37
NOTE 39
ENVIRONMENT
POST-BALANCE SHEET EVENTS
Given the nature of the industry, the Company is not affected by concepts
related to the improvement and/or investment of productive processes,
verification and control of the compliance of laws and regulations regarding
industrial processes and facilities or any other factor that could directly
or indirectly affect the protection of the environment.
On January 27, 2015 the SVS was informed, as an essential fact, that
Inmuebles Comerciales del Peru S.A.C. signed a contract for the sale
and purchase of shares for 100% of the shares issued by Ekimed S.A.C.,
a valid company incorporated as per the laws of Peru (“Ekimed”). By
virtue of this transaction, Inmuebles Comerciales del Peru S.A.C. became
the owner of the mall El Quinde in the cities of Cajamarca and Ica, with
approximately 30,000 and 37,000 m2 of leasable area respectively,
as well as of a land bank in other Peruvian cities, with a total area of
86,000 m2. The parties valued the company for a total of US$ 98 million
approximately, including its financial liabilities, which totaled US$33
million approximately. These will remain in Ekimed and will consequently
be assumed by Inmuebles Comerciales del Peru S.A.C.
NOTE 38
SANCTIONS
On December 31, 2014, with respect to sanctions from regulating
or administrative authorities, no sanctions have been applied to the
Company or its Directors.
CONSOLIDATED FINANCIAL STATEMENTS
Level 1: Quoted prices (not adjusted) in active markets for identical assets or liabilities.
Level 2: Data different from the quoted prices included under Level 1, which are observable for the asset or liability, either directly or indirectly (that is to say, derived from
the prices).
Level 3: Relevant non-observable data for the asset or liability.
68
RATIONALE 2014
DISCLAIMER
EXECUTIVE SUMMARY
THIS DOCUMENT HAS BEEN PREPARED BY PARQUE ARAUCO
FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION
ABOUT THE COMPANY.
•Net profit increased 43.3% during the 4th quarter and 21.5% during
the year.
The Company assumes no responsibility for, or makes any representation
or warranty, express or implied, with respect to, the accuracy, adequacy
or completeness of the information contained herein. The Company
expressly disclaims any liability based on such information, errors
therein or omissions therefrom.
This presentation includes certain statements, estimates and
forecasts provided by the Company with respect to it’s anticipated
future performance and involves significant elements or subjective
judgment and analysis that may or may not prove to be accurate or
correct. There can be no assurance that these statements, estimates
and forecasts will be attained and actual outcomes and results may
differ materially from what is estimated or forecast herein.
• Gross Leasable Area (GLA) increased 5.1%, reaching 728,500 m2 with
the incorporation of six new properties and the inauguration of two
expansion projects during 2014.
• Arauco Premium Outlet San Pedro, Arauco Premium Outlet Curauma and
strip centers Manuel Montt, Las Brujas and El Carmen de Huechuraba
were incorporated into our portfolio in Chile and strip center Víamix
Chorrillos was incorporated into our portfolio in Peru, marking the first
time Parque Arauco participates in the strip center format outside of
Chile. The expansions of Arauco Chillán in Chile and InOutlet Faucett
in Peru were inaugurated.
• Consolidated occupancy reached 94.4% in line with the consolidated
occupancy of 93.7% during 2013.
• 2014 revenues increased 17.3% in 2014, reaching Ch$ 125, 886 million.
• EBITDA grew 14.9% to Ch$85,554 million during the year on an
EBITDA margin of 68.0%.
• Funds From Operation (FFO) increased 8.5% over 2013, reaching Ch$
64,334 million.
• We continued our strategy of diversification in terms of geography and
formats. In 2014 the percent of revenues generated by assets outside
of Chile increased from 29.6% to 34.8%, while revenues from nontraditional formats represented 9.8% of total revenues.
•There were many financial highlights in 2014, including the successful
capital increase, the syndicated loan to finance Parque La Colina in
Colombia, the improvement in our local credit rating by two notches
and the issuance and exchange of bonds in Chile.
•Parque Arauco was recognized with multiple awards during 2014, both
locally and internationally, including the first shopping center to obtain
LEED certification in Chile, “Best Managed Andean Corporate” awarded
by Latin Finance and entrance into the Branding Hall of Fame in Chile.
CONSOLIDATED FINANCIAL STATEMENTS
The information contained herein has been prepared to assist interested
parties in making their own evaluation of the company and does not
purport to be all - inclusive or to contain all the information that a
potential counterparty may desire. In all cases, interested parties
should conduct their own independent investigation and analysis of
the Company. Interested parties can only rely on the result of their
own investigation and the representations and warranties made in
any definitive agreement that may be executed.
69
RATIONALE 2014
CONTENTS
Financial and operating results_______________________71
Balance sheet review________________________________75
Cash flow review____________________________________77
Main financial indicator______________________________78
Portfolio 2014_______________________________________79
Property level results________________________________80
Highlights by country________________________________84
Future developments________________________________86
Landbank___________________________________________87
Analysis of market risks______________________________88
Case study -Arauco Chillán ___________________________88
Consolidated financial statements_____________________89
FINANCIAL AND
OPERATING RESULTS
CH$ THOUSANDS
4Q14
4Q13
CHG. %
2014
2013
CHG. %
Revenues
37,200,732
32,022,966
16.2%
125,886,312
107,318,830
17.3%
Cost of Sales
(7,938,631)
(6,462,743)
22.8% (28,606,149) (22,307,202)
28.2%
Gross Profit
29,262,101
25,560,223
14.5%
85,011,628
14.4%
Administration Expenses
(4,904,131)
(4,258,926)
15.1% (15,315,325) (13,336,635)
14.8%
OPERATING INCOME
24,357,970
21,301,297
Depreciation & Amortization
(1,001,295)
(719,125)
EBITDA
25,359,265
81,964,838
71,674,993
14.4%
39.2% (3,588,803)
(2,781,490)
29.0%
22,020,422
15.2%
85,553,641
74,456,483
14.9%
(175,021)
(1,624,235)
-89.2%
(1,460,204)
(6,393,858)
-77.2%
923,209
1,235,033
-25.2%
4,605,580
3,983,554
15.6%
(7,198,507)
(5,356,601)
34.4% (25,825,240) (19,150,007)
34.9%
5,018,518
5,833,555
-14.0%
8,750,979
9,663,436
-9.4%
Foreign Exchange Differences
(1,505,352)
(684,806)
119.8%
889,035
(279,889)
-417.6%
Income (Loss) for indexed assets and liabilities
(3,942,238)
(2,312,843)
70.4% (13,095,652)
(5,129,628)
155.3%
Gains (losses) from the difference between the
previous book value and the fair value of financial
assets
16,707,834
4,459,032
274.7%
4,459,032
274.7%
NON-OPERATING INCOME
9,828,443
1,549,135
534.4%
(9,427,668) (12,847,360)
-26.6%
Profit before Income Tax
34,186,413
22,850,432
49.6%
72,537,170
58,827,633
23.3%
Income Tax
(5,150,944)
(2,583,423)
99.4% (11,744,400)
(8,811,313)
33.3%
NET PROFIT (LOSS)
29,035,469
20,267,009
43.3%
60,792,770
50,016,320
21.5%
Equity holders of the company
30,703,003
28,408,539
8.1%
57,749,400
55,280,589
4.5%
Minority interests
(1,667,534)
(8,141,530)
-79.5%
3,043,370 (5,264,269)
-158%
43.3% 60,792,770 50,016,320
21.5%
Other Income / Expenses
Financial Income
Financial Expenses
Share of Profit (Loss) of Associates Accounted
14.3%
97,280,163
16,707,834
Attributable to:
NET PROFIT (LOSS)
29,035,469 20,267,009
CONSOLIDATED FINANCIAL STATEMENTS
INCOME STATEMENT - CONSOLIDATED
71
FINANCIAL AND
OPERATING RESULTS
KEY PERFORMANCE INDICATORS
4Q14
4Q13
CHG.
2014
2013
CHG.
EBITDA Margin %
68.2%
68.8%
-60
68.0%
69.4%
-142
Net Income Margin %
82.5%
88.7%
-618
45.9%
51.5%
-564
FFO (Ch$ Millions) 1
19,084
17,899
6.6%
64,334
59,290
8.5%
51.3%
55.9%
-459
51.1%
55.2%
-414.2
Total Tenant Sales (Ch$ Millions) 2
405,044
358,421
13.0%
1,341,283
1,156,657
16.0%
Total GLA (m2)3
728,500
693,100
5.1%
728,500
693,100
5.1%
Owned GLA (m2)3
549,409
520,518
5.6%
549,409
520,518
5.6%
814.50
699.50
16.4%
788.15
699.50
12.7%
37.70
40.61
-7.2%
73.27
79.03
-7.3%
1,162.20
965.00
20.4%
1,162.20
965.00
20.4%
812.39
1,328.00
-38.8%
952.76
1,333.00
-28.5%
FFO Margin %
Weighted Avg. Shares (million)4
EPS (Ch$ Thousands)5
Stock Price (Ch$)
Daily Traded Volume (Ch$ million)
1. FFO = ebitda + financial income + financial expenses
2. Total Tenant Sales = Sales of Consolidated Assets
3. GLA of Marina Arauco not considered
4. Excludes 3,250,000 Treasury shares
5.EPS = Net income attributable to the equity holders of the company/weighted average number of shares outstanding.
Juan Antonio Álvarez
Executive Vice President, Parque Arauco S.A.
“2014 was a great year, the firth consecutive year of double digit growth in
both revenues and EBITDA. Looking forward, we have important projects
that are at different stages of development as well as a valuable landbank
that will be the basis of the future growth of the company. Our perspectives
for the next 5 years are clear. Now is the time to bring our ideas to fruition”
Claudio Chamorro
CFO, Parque Arauco S.A.
CONSOLIDATED FINANCIAL STATEMENTS
“We are focused on the continued expansion of our operations. In an evolving
and challenging market, we will continue to grow in the right countries, with
the right partners and the appropriate format, all the while keeping our
customers as our top priority”
72
2014 revenue grew to Ch$ 125,886 million, a 17.3% increase over 2013.
The growth was primarily the result of additional GLA, improved tenant
sales, and higher rental revenue, due to renewing contracts at higher
levels, especially in Chile. Total GLA for the Company at the end of the
2014 was 728,500 m2, up 5.1% compared to 2013. The increase reflects
the addition of Arauco Premium Outlet San Pedro, Arauco Premium
Outlet Curauma and strip centers Manuel Montt, Las Brujas and El
Carmen de Huechuraba in Chile and strip center Víamix Chorrillos in
Peru. Additionally the expansion of Arauco Chillán in Chile and InOutlet
Faucett in Peru contributed to the increase in revenue.
up from 29.6% during 2013. During 2014, revenues from Chile totaled
Ch$ 82,051 million, revenues from Peru were Ch$ 33,481 million, and
revenues from Colombia totaled to Ch$ 10,354 million.
Revenues by country
8.3%
COLOMBIA
26.4%
PERU
Revenues (Ch$ Millions)
65.3%
CHILE
4Q14
17.3%
125,886
107,319
16.2%
8.4%
COLOMBIA
37,201
32,023
69.7%
CHILE
4Q13
21.9%
PERU
4Q13
4Q14
2013
2014
During the year, total tenant sales increased by 15.9% to Ch$ 1,340,759
million. Consolidated occupancy remained stable at 94.4% during 2014.
8.2%
COLOMBIA
Tenant Sales (Ch$ Millions)
15.9%
1,340,759
1,156,657
26.6%
PERU
65.2%
CHILE
2014
12.9%
4Q13
404,520
4Q14
2013
2014
Parque Arauco is committed to diversifying its asset base in terms of
formats. During the year Parque Arauco increased GLA of outlet malls
and strip centers by 67.9%. During the year we inaugurated Arauco
Premium Outlet San Pedro in Concepción, Arauco Premium Outlet
Curauma in Valparaiso, three new strip centers in Chile, the first strip
center in Peru, and the expansion of InOutlet Faucett. We also finished
the first phase of the expansion of Arauco Premium Outlet Buenaventura,
which opened partially.
In keeping with the Company’s regional expansion strategy, revenue
participation of assets outside of Chile continued to increase during 2014.
Revenues from Colombia and Peru represented 34.8% of total revenues,
7.2%
COLOMBIA
70.4%
CHILE
2013
22.4%
PERU
Cost of sales increased 28.2% reaching Ch$ 28,606 million in 2014,
which is explained by an increase in costs related to territorial taxes,
energy and personnel. Administration expenses increased 14.8% reaching
Ch$ 15,315 million due to higher costs in marketing, communication
and technology and fees.
CONSOLIDATED FINANCIAL STATEMENTS
358,421
73
EBITDA
The Company reported EBITDA of Ch$ 85,554 million during 2014,
a 14.9% increase over 2013. The consolidated EBITDA margin was
68.0%, compared with 69.4% in 2013. The decrease reflects the new
shopping centers in the Company´s portfolio that are still in the process
of maturation, as well as additional costs incurred during a period of
intense growth.
EBITDA by country
5.3%
COLOMBIA
Colombia and Peru´s EBITDA contribution increased to 30.2% in 2014,
up from 23.8% during 2013. During 2014, EBITDA from operations
totaled Ch$ 59,674 million in Chile, Ch$ 21,336 million in Peru and Ch$
4,544 million in Colombia.
24.9%
PERU
69.8%
CHILE
2014
EBITDA (Ch$ millions)
4.8%
COLOMBIA
14.9%
85,554
15.2%
19.0%
PERU
74,456
76.2%
CHILE
2013
25,359
22,020
4Q14
2013
2014
Net non-operating expenses during 2014 totaled Ch$ 9,428 million,
compared to net non-operating expenses of Ch$ 12,847 million in 2013.
The reduction was due primarily to a higher result in Gains (losses)
from the difference between the previous book value and the fair value
of our assets, which was generated by a lower discount rate and higher
expectations of the recently inaugurated projects. Other effects include
lower costs in Other income/expenses due to non-recurring costs incurred
in 2013, higher financial expenses due to a larger stock of debt, and a
CH$ THOUSANDS
bigger loss on indexed assets and liabilities, reflecting the appreciation
of UF (Chilean inflation linked currency) denominated debt in Chile.
Income taxes for the year increased to Ch$ 11,744 million as compared to
the 2013 figure of Ch$ 8,811 million. Excluding the non-cash deferred tax
expense, 2014 current income tax totaled Ch$ 9,003 million compared
to Ch$ 5,644 million in 2013.
4Q14
4Q13
CHG. %
2014
2013
CHG. %
Current tax
(1,713,006)
(217,388)
688.0%
(9,002,641)
(5,644,439)
59.5%
Differed tax
(3,437,938)
(2,366,035)
45.3%
(2,741,759)
(3,166,874)
-13.4%
TOTAL TAX
(5,150,944)
(2,583,423)
99.4% (11,744,400)
(8,811,313)
33.3%
Net profit was up 21.5% in the year due to the increase in EBITDA and
lower non-operating expenses. Net profit attributable to equity holders
of the company was up 4.5%, and earnings per share decreased from
Ch$ 79.03 to Ch$ 73.27. The average number of shares outstanding
increased to 788,752,050 in 2014 after the capital increase that
was executed during the first quarter, and the total number of shares
outstanding at the close of 2014 increased to 814,497,054, not including
the 3,250,000 shares in treasury. FFO (“Funds from Operations”) for
the year were Ch$ 64,334 million, as compared to Ch$ 59,290 million
in 2013, representing an 8.5% increase.
CONSOLIDATED FINANCIAL STATEMENTS
4Q13
74
BALANCE
SHEET REVIEW
CH$ MILLIONS
12.31.2014
12.31.2013
VAR. %
DIF.
Current Assets
161,736
117,108
38.1%
44,628
1,252,021
1,084,848
15.4%
167,173
1,413,758
1,201,956
17.6%
211,802
12.31.2014
12.31.2013
VAR. %
DIF.
95,651
76,064
25.8%
19,588
Non Current Liabilities
537,979
490,585
9.7%
47,394
TOTAL LIABILITIES
633,630
566,649
11.8%
66,982
780,127
635,307
22.8%
144,820
1,413,758
1,201,956
17.6%
211,802
Non Current Assets
TOTAL ASSETS
Current assets increased to Ch$ 161,736 million from Ch$ 117,108 due
primarily to an increase in cash and cash equivalents. Cash and cash
equivalents increased to Ch$ 110,061 million from Ch$ 68,946 million
as of December 31, 2013. The additional cash reflects the Ch$ 103,894
million capital increase completed during the first quarter.
CH$ MILLIONS
Current Liabilities
Equity
TOTAL LIABILITIES AND EQUITY
Current liabilities increased by Ch$ 19,588 million while non-current
liabilities increased by Ch$ 47,394 million primarily due to the issuance of
the Bond Series K in the amount of UF 1,025,000, and higher deferred taxes.
Total equity increased by Ch$ 144,820 million due mainly to the capital
increase executed during the first quarter of 2014.
CONSOLIDATED FINANCIAL STATEMENTS
Non-current assets increased to Ch$ 1,252,021 million from Ch$ 1,084,848
million as of December 31, 2013. The increase was due primarily to Ch$
142,792 million of additional investment properties corresponding to
the ongoing development of projects which include growth in Chile of
Ch$ 51,696 million, growth in Peru of Ch$ 35,861 million and growth in
Colombia of Ch$ 29,319 million.
75
FINANCIAL INDICATORS
UNITS
12.31.2014
12.31.2013
Gross Financial Debt
Ch$ million
473,328
441,378
Net Financial Debt
Ch$ million
363,267
372,432
COVENANT
LIMIT
Net Financial Debt / EBITDA (12 months)
times
4,25
5,00
> 2,5
EBITDA / Financial Expenses (12 months)
times
3,31
3,89
< 1,4
Liabilities / Equity
times
0,81
0,89
< 1,5
Net Financial Debt/Equity
times
0,47
0,59
Current Liabilities
%
15
13
Non-Current Liabilities
%
85
87
Net financial debt at the end of 2014 was $363,267 million. The Company
remains comfortably within its financial covenants, with Liabilities/Equity
of 0.81 times as compared to a limit of 1.4 times, Net financial debt/
Equity of 0.47, below the limit of 1.5, and EBITDA/Financial Expenses
of 3.31 times, above the limit of 2.5 times.
CH$ MILLIONS
Financial Leasing
Bank Loans
Bonds
Hedge Liabilities
TOTAL
12.31.2014
12.31.2013
CURRENT
NON CURRENT
CURRENT
NON CURRENT
1,360
8,781
1,275
10,585
48,236
261,471
29,373
270,492
2,459
135,693
5,078
116,163
-
15,328
-
8,412
52,055
421,273
35,726
405,652
CONSOLIDATED FINANCIAL STATEMENTS
CONCEPT
76
BALANCE SHEET
REVIEW
CASH FLOW (CH$ MILLIONS)
12.31.2014
12.31.2013
VAR. %
DIF.
81,016
62,229
30.2%
18,787
(119,152)
(143,855)
-17.2%
24,703
77,374
49,718
55.6%
27,656
Eff. of var. exchange rate on cash and cash equi.
1,877
(2,928)
-164.1%
4,805
Net cash flow during the period
41,115
(34,836)
-218.0%
75,952
68,946
103,782
-33.6%
(34,836)
110,061
68,946
59.6%
41,115
From Operating Activities
From Investment Activities
From Financing Activities
Cash and cash equivalents at beginning of period
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Cash flow from operating activities increased by 30.2% to Ch$ 81,016
million. Investment activities during the year generated a negative cash
flow of Ch$ 119,152 million which is explained by the use of cash for the
development of new properties and the expansion of existing properties.
Financing activities generated a positive cash flow of Ch$ 77,374 million
which is mainly explained by the Ch$ 103,894 million capital increase
that was executed during the first quarter and the new Bond Series K
partially offset by the prepayment of the Bond Series G, and the exchange
of the Bond Series H..
77
MAIN FINANCIAL
INDICATORS1
FINANCIAL RATIOS
INDICATOR
UNIT
12.31.2014
12.31.2013
Liquidity Level
Current Assets / Current Liabilities
times
1.69
1.54
Short Term Debt
Current Liabilities / Total Liabilities
%
15.10
13.42
Long Term Debt
Non Current Liabilities / Total Liabilities
%
84.90
86.58
Net Profit
Net Profit
Ch$ mill.
60,793
50,016
Basic EPS
Net Profit att. Equity Holders / N°
shares - trea. shares
Ch$
73.27
79.03
Return on Equity
Net profit att. Equity Holders / Av.
Shareholders Equity*
%
9.41
11.39
Return on Assets
Net profit att. Equity Holders / Average
Total Assets*
%
4.53
4.51
Return on Operating Assets
Net Profit /Average Operating Assets*
%
5.90
5.67
Dividend Yield
Dividends Paid Last 12 m. / Last Share
Price
%
2.32%
2.80%
Gross Profit Margin
Operating profit / Revenues
%
65.11
66.79
CONSOLIDATED FINANCIAL STATEMENTS
1. The operational and financial indicators presented are calculated based on standards set out by the Superintendencia de Valores y Seguros, and they don´t necesarrily
coincide with the calculations used to calculate the company´s debt covenants.
* Calculated using results from the last twelve months
78
NAME
TOTAL GLA (M2)
% OWNERSHIP
OWNED GLA (M2)
Parque Arauco Kennedy
115,000
100%
115,000
Arauco Maipu
75,000
100%
75,000
Arauco Chillán
31,500
100%
31,500
Paseo Arauco Estación
69,000
83%
57,270
Arauco San Antonio
28,500
51%
14,535
Arauco Quilicura
32,000
100%
32,000
Arauco Express Consolidado
18,500
51%
9,435
Arauco Prem. Outlet Buenaventura
19,000
100%
19,000
Arauco Prem. Outlet Concepción
6,500
100%
6,500
Arauco Prem. Outlet Curauma
7,000
100%
7,000
402,000
91%
367,240
110,500
50%
55,250
7,000
50%
3,500
Larcomar
26,000
100%
26,000
Parque Lambramani
30,000
100%
30,000
MegaPlaza Chimbote
28,000
34%
9,380
MegaPlaza Express Villa El Salvador
9,000
50%
4,500
MegaPlaza Express Chincha
7,000
50%
3,500
16,500
50%
8,250
MegaPlaza Express Barranca
9,500
50%
4,750
InOutlet Faucett
7,500
51%
3,825
Viamíx Chorrillos
4,000
51%
2,040
255,000
59%
150,995
Parque Arboleda*
33,000
30%
9,999
Parque Caracolí
38.500
55%
21,175
TOTAL COLOMBIA
71,500
44%
31,174
728,500
75%
549,409
TOTAL CHILE
MegaPlaza Norte
MegaPlaza Express Villa Chorrillos
MegaPlaza Cañete
TOTAL PERU
TOTAL **
*Parque arboleda does not include office towers
**Gla of marina arauco not included
CONSOLIDATED FINANCIAL STATEMENTS
PORTFOLIO 2014
79
PROPERTY
LEVEL RESULTS
2014
GLA
SALES
REVENUES
EBITDA
2014
2013
VAR. %
2014
2013
VAR. %
2014
2013
VAR. %
2014
2013
VAR. %
Parque Arauco Kennedy
115,000
115,200
0%
368,640
349,560
5%
38,790
36,297
7%
36,030
33,270
8%
Arauco Maipú
75,000
74,000
1%
166,602
153,117
9%
11,986
11,360
6%
11,531
10,567
9%
Arauco Chillán (Plaza El Roble)
31,500
25,000
26%
65,611
62,707
5%
4,508
4,231
7%
3,448
3,316
4%
Paseo Arauco Estación
69,000
68,000
1%
107,004
99,379
8%
13,705
13,267
3%
12,082
11,508
5%
Arauco San Antonio
28,500
29,000
-2%
33,248
31,594
5%
3,578
3,460
3%
1,991
2,197
-9%
Arauco Quilicura
32,000
31,260
2%
44,833
30,954
45%
3,296
2,046
61%
2,685
1,421
89%
Arauco Express (Stripcenters
Chile)
18,500
12,222
51%
13,981
12,476
12%
2,595
2,210
17%
1,518
1,423
7%
Arauco Premium Outlet
Buenaventura Arauco
19,000
20,000
-5%
33,424
29,821
12%
3,241
3,323
-2%
2,550
2,174
17%
Arauco Premium Outlet
Concepción
6,500
-
-
4,400
-
-
432
-
-
105
-
-
Arauco Premium Outlet Curauma
7,000
-
-
-
-
-
-
-
-
-
-
-
402,000
374,682
7%
837,743
769,606
9%
82,130
76.194
8%
71,940
65,877
9%
110,500
107,400
3%
1,117,838
1,025,287
9%
78,660
62,273
26%
62,000
49,236
26%
7,000
7,000
0%
63,921
56,772
13%
4,401
3,988
10%
3,285
2,830
16%
Larcomar
26,000
26,000
0%
229,763
191,647
20%
34,482
28,583
21%
23,537
18,147
30%
Parque Lambramani
30,000
29,390
2%
147,287
132,722
11%
11,278
10,337
9%
4,860
3,271
49%
MegaPlaza Chimbote
28,000
28,000
0%
212,385
207,496
2%
10,648
10,112
5%
7,439
6,552
14%
MegaPlaza Express Villa El
Salvador
9,000
9,000
0%
63,054
51,982
21%
5,424
4,507
20%
4,086
3,174
29%
MegaPlaza Express Chincha
7,000
7,224
-3%
29,742
20,450
45%
4,305
2,734
58%
3,038
1,650
84%
16,500
16,397
1%
109,569
49,769
120%
5,742
1,268
353%
3,823
548
598%
MegaPlaza Express Barranca
9,500
9,507
0%
36,095
6,382
466%
4,266
316
1251%
2,927
-51
-
InOutlet Faucett
7,500
5,000
50%
54,556
39,212
39%
4,955
3,109
59%
4,395
2,494
76%
Viamíx Chorrillos
4,000
-
-
3,812
-
-
516
-
-
431
-
-
255,000
244,918
4%
2,068,021
1,781,719
16%
164,679
127,226
29%
119,822
87,851
36%
Parque Arboleda
33,000
34,000
-3%
172,479
156,018
11%
19,154
18,013
6%
14,961
15,279
-2%
Parque Caracolí
38,500
39,500
-3%
133,869
71,891
86%
17,133
11,011
56%
12,466
7,030
77%
TOTAL COLOMBIA
71,500
73,500
-3%
306,348
227,909
34%
36,286
29,025
25%
27,427
22,309
23%
TOTAL CHILE
MegaPlaza Norte
MegaPlaza Express Villa Chorrillos
MegaPlaza Cañete
TOTAL PERU
ESTADOS FINANCIEROS CONSOLIDADOS
CHILE IN MMCLP/ PERU
IN THOUSANDS PEN
COLOMBIA IN MMCOP
80
PROPERTY
LEVEL RESULTS
2014
OCCUPANCY
EBITDA MARGIN
MONTHLY SALES PER M2
MONTHLY REVENUES PER M2
2014
2013
VAR. %
2014
2013
VAR. %
2014
2013
VAR. %
2014
2013
VAR. %
Parque Arauco Kennedy
96.9%
97.2%
-26
92.9%
91.7%
122
274,590
266,959
3%
28,893
27,720
4%
Arauco Maipú
95.9%
97.3%
-141
96.2%
93.0%
319
192,663
176,941
9%
13,861
13,128
6%
Arauco Chillán (Plaza El Roble)
89.2%
91.9%
-275
76.5%
78.4%
-189
186,958
219,504
-15%
12,846
14,811
-13%
Paseo Arauco Estación
96.4%
98.2%
-181
88.2%
86.7%
142
132,957
123,517
8%
17,029
16,489
3%
Arauco San Antonio
92.8%
94.0%
-118
55.7%
63.5%
-784
103,079
95,241
8%
11,092
10,430
6%
Arauco Quilicura
98.2%
97.1%
110
81.5%
69.5%
1198
120,333
105,950
14%
8,847
7,091
25%
Arauco Express (Stripcenters
Chile)
85.0%
98.3%
-1330
58.5%
64.4%
-588
84,536
88,478
-4%
15,691
15,227
3%
Arauco Premium Outlet
Buenaventura
91.4%
98.0%
-660
78.7%
65.4%
1324
152,560
133,641
14%
14,794
14,892
-1%
Arauco Premium Outlet
Concepción
95.7%
-
-
24.2%
-
-
131,948
-
-
12,958
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL CHILE
95.0%
96.9%
-187
87.6%
86.5%
113
186,381
180,954
3%
18,272
17,913
2%
MegaPlaza Norte
93.7%
90.0%
372
78.8%
79.1%
-24
909
1.015
-10%
64
62
4%
MegaPlaza Express Villa Chorrillos
98.3%
100.0%
-174
74.7%
71.0%
368
767
686
12%
53
48
10%
Larcomar
94.2%
94.0%
22
68.3%
63.5%
477
777
668
16%
117
100
17%
Parque Lambramani
93.7%
92.0%
170
43.1%
31.6%
1144
441
446
-1%
34
35
-3%
MegaPlaza Chimbote
98.9%
100.0%
-108
69.9%
64.8%
508
635
650
-2%
32
32
0%
MegaPlaza Express Villa El
Salvador
98.4%
95.0%
337
75.3%
70.4%
490
595
519
15%
51
45
14%
MegaPlaza Express Chincha
98.0%
89.0%
900
70.6%
60.4%
1020
350
339
3%
51
39
29%
MegaPlaza Cañete
98.9%
82.0%
1694
66.6%
43.2%
2336
560
1.234
-55%
29
31
-7%
MegaPlaza Express Barranca
98.0%
74.0%
2400
68.6%
-16.2%
8480
329
302
9%
39
15
160%
InOutlet Faucett
88.3%
87.0%
130
88.7%
80.2%
850
787
969
-19%
71
77
-7%
Viamíx Chorrillos
62.5%
-
-
-
-
-
-
-
-
-
-
-
TOTAL PERU
94.6%
91.0%
357
72.8%
69.1%
371
723
789
-8%
58
56
2%
Parque Arboleda
93.1%
93.0%
8
78.1%
84.8%
-671
459,728
404,653
14%
51,053
46,720
9%
Parque Caracolí
87.4%
86.0%
141
72.8%
63.8%
892
325,460
246,617
32%
41,652
37,773
10%
TOTAL COLOMBIA
90.0%
89.2%
76
75.6%
76.9%
-128
389,537
336,611
16%
46,140
42,868
8%
Arauco Premium Outlet Curauma
ESTADOS FINANCIEROS CONSOLIDADOS
CHILE IN MMCLP/ PERU
IN THOUSANDS PEN
COLOMBIA IN MMCOP
81
PROPERTY
LEVEL RESULTS
FOURTH QUARTER 2014
GLA
SALES
REVENUES
EBITDA
4Q14
4Q13
VAR. %
4Q14
4Q13
VAR. %
4Q14
4Q13
VAR. %
4Q14
4Q13
VAR. %
Parque Arauco Kennedy
115,000
115,200
0%
110,546
107,284
3%
11,691
10,966
7%
11,090
9,877
12%
Arauco Maipú
75,000
74,000
1%
52,930
49,961
6%
3,639
3,628
0%
3,560
3,352
6%
Arauco Chillán (Plaza El Roble)
31,500
25,000
26%
19,825
17,667
12%
1,318
1,136
16%
1,017
909
12%
Paseo Arauco Estación
69,000
68,000
1%
31,793
29,516
8%
3,687
3,509
5%
3,341
3,053
9%
Arauco San Antonio
28,500
29,000
-2%
9,408
8,725
8%
966
904
7%
263
439
-40%
Arauco Quilicura
32,000
31,260
2%
13,673
11,376
20%
974
794
23%
820
550
49%
Arauco Express (Stripcenters
Chile)
18,500
12,222
51%
4,030
2,807
44%
883
570
55%
503
340
48%
Arauco Premium Outlet
Buenaventura
19,000
20,000
-5%
10,494
9,768
7%
918
1,082
-15%
756
775
-3%
Arauco Premium Outlet
Concepción
6,500
-
-
2,474
-
-
205
-
-
53
-
-
Arauco Premium Outlet Curauma
7,000
-
-
-
-
-
-
-
-
-148
-
-
402,000
374,682
7%
255,174
237,103
8%
24,282
22,589
7%
21,402
19,295
11%
110,500
107,400
3%
317,945
294,104
8%
22,266
16,661
34%
17,233
13,633
26%
7,000
7,000
0%
16,380
15,165
8%
1,217
1,038
17%
905
760
19%
Larcomar
26,000
26,000
0%
59,186
58,007
2%
10,077
8,929
13%
6,966
5,924
18%
Parque Lambramani
30,000
29,390
2%
40,419
38,665
5%
2,994
2,794
7%
1,473
949
55%
MegaPlaza Chimbote
28,000
28,000
0%
57,612
61,438
-6%
2,999
2,958
1%
2,316
2,098
10%
MegaPlaza Express Villa El
Salvador
9,000
9,000
0%
17,575
15,477
14%
1,581
1,327
19%
1,207
922
31%
MegaPlaza Express Chincha
7,000
7,224
-3%
7,972
7,515
6%
1,161
955
22%
787
652
21%
16,500
16,397
1%
30,052
27,612
9%
1,696
903
88%
1,091
231
372%
MegaPlaza Express Barranca
9,500
9,507
0%
10,127
6,382
59%
1,184
316
275%
882
-51
-
InOutlet Faucett
7,500
5,000
50%
22,130
7,169
209%
2,090
1,199
74%
1,931
974
98%
Viamíx Chorrillos
4,000
-
-
2,406
-
-
516
-
-
431
-
-
255,000
244,918
4%
581,805
531,534
9%
47,781
37,079
29%
35,222
26,094
35%
Parque Arboleda
33,000
34,000
-3%
62,700
56,032
12%
5,875
5,304
11%
4,683
4,646
1%
Parque Caracolí
38,500
39,500
-3%
46,612
29,666
57%
5,209
4,758
9%
4,181
3,336
25%
TOTAL COLOMBIA
71,500
73,500
-3%
109,312
85,698
28%
11,084
10,062
10%
8,863
7,982
11%
TOTAL CHILE
MegaPlaza Norte
MegaPlaza Express Villa Chorrillos
MegaPlaza Cañete
TOTAL PERU
ESTADOS FINANCIEROS CONSOLIDADOS
CHILE IN MMCLP/ PERU
IN THOUSANDS PEN
COLOMBIA IN MMCOP
82
PROPERTY
LEVEL RESULTS
FOURTH QUARTER 2014
4Q14
4Q13
VAR. B.P.
4Q14
4Q13
VAR. B.P.
4Q14
4Q13
VAR. %
4Q14
4Q13
VAR. %
Parque Arauco Kennedy
96.9%
97.2%
-26
94.9%
90.1%
479
329,327
317,410
4%
34,828
32,445
7%
Arauco Maipú
95.9%
97.3%
-141
97.8%
92.4%
544
244,160
231,412
6%
16,788
16,802
0%
Arauco Chillán (Plaza El Roble)
89.2%
91.9%
-275
77.2%
80.0%
-288
229,792
257,157
-11%
15,279
16,541
-8%
Paseo Arauco Estación
96.4%
98.2%
-181
90.6%
87.0%
360
158,190
146,963
8%
18,347
17,473
5%
Arauco San Antonio
92.8%
94.0%
-118
27.2%
48.5%
-2131
118,320
106,298
11%
12,150
11,011
10%
Arauco Quilicura
98.2%
97.1%
110
84.2%
69.4%
1481
144,578
124,539
16%
10,296
8,687
19%
Arauco Express (Stripcenters
Chile)
85.0%
98.3%
-1330
57.0%
59.7%
-267
87,145
77,220
13%
19,104
15,692
22%
Arauco Premium Outlet
Buenaventura
91.4%
98.0%
-660
82.3%
71.6%
1071
200,295
172,450
16%
17,513
19,103
-8%
Arauco Premium Outlet
Concepción
95.7%
-
-
25.7%
-
-
-
-
-
12,311
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL CHILE
95.0%
96.9%
-187
88.1%
85.4%
272
225,975
217,555
4%
21,504
20,727
4%
MegaPlaza Norte
93.7%
90.0%
372
77.4%
81.8%
-443
1,032
1,133
-9%
72
64
13%
MegaPlaza Express Villa Chorrillos
98.3%
100.0%
-174
74.4%
73.3%
113
790
723
9%
59
49
19%
Larcomar
94.2%
94.0%
22
69.1%
66.4%
277
808
809
0%
138
125
10%
Parque Lambramani
93.7%
92.0%
170
49.2%
34.0%
1525
477
529
-10%
35
38
-8%
MegaPlaza Chimbote
98.9%
100.0%
-108
77.2%
70.9%
631
690
731
-6%
36
35
2%
MegaPlaza Express Villa El
Salvador
98.4%
95.0%
337
76.4%
69.5%
683
658
600
10%
59
51
15%
MegaPlaza Express Chincha
98.0%
89.0%
900
67.8%
68.3%
-57
383
377
2%
56
48
17%
MegaPlaza Cañete
98.9%
82.0%
1694
64.3%
25.6%
3873
611
1,369
-55%
34
45
-23%
MegaPlaza Express Barranca
98.0%
74.0%
2400
74.5%
-16.2%
9064
359
605
-41%
42
30
40%
InOutlet Faucett
88.3%
87.0%
130
92.4%
81.2%
1115
1,162
546
113%
110
91
20%
Viamíx Chorrillos
62.5%
-
-
83.4%
-
-
642
-
-
138
-
-
TOTAL PERU
94.6%
91.0%
357
73.7%
70.4%
334
804
887
-9%
66
62
7%
Parque Arboleda
93.1%
93.0%
8
79.7%
87.6%
-788
681,243
577,939
18%
63,830
54,712
17%
Parque Caracolí
87.4%
86.0%
141
80.3%
70.1%
1014
463,426
307,175
51%
51,788
49,263
5%
TOTAL COLOMBIA
90.0%
89.2%
76
80.0%
79.3%
64
567,590
442,818
28%
57,551
51,993
11%
Arauco Premium Outlet Curauma
OCCUPANCY
EBITDA MARGIN
MONTHY SALES PER M2
MONTHLY REVENUES PER M2
ESTADOS FINANCIEROS CONSOLIDADOS
CHILE IN MMCLP/ PERU
IN THOUSANDS PEN
COLOMBIA IN MMCOP
83
HIGHLIGHTS
BY COUNTRY
CHILE
The Luxury District, located in Parque Arauco Kennedy and inaugurated
in 2013, was undergoing an expansion of over 1,000 m2 after enjoying
excellent results during its first year of operation. This expansion will
add six premium brands to the Luxury District, including Tiffany & Co.,
the first to open in Chile. Parque Arauco Kennedy maintains its position
as the preferred shopping center for the entrance of new international
brands into the Chilean market. This was seen in 2014 with the opening
of Aeropostale, Etiqueta Negra, Victoria´s Secret (Beauty & Accessories),
Versace Collection, Vince Camuto, October, Free People and Café Paul.
With a new and modern online format and renewed content, we have
re-launched Revista Detalle (www.revistadetalle.cl.), a blog showcasing
the latest trends, fashion, technology, beauty, art and gastronomy,
serving as an alternative way to enhance our customers´ experience.
Located in the second largest and one of the fastest growing sectors of
Santiago, Arauco Maipu continued to solidify its link with the community,
with the addition of new international brands to its commercial mix and
by continuing to improve the new gastronomic boulevard. The mall hosted
various free concerts and public events during the year
We officially changed the name of Plaza El Roble to Arauco Chillan, and
the mall has adopted Parque Arauco´s corporate logo. Additionally the
6,500 m2 expansion of the mall was completed, adding Hites as an
anchor store and more than 40 new stores, restaurants, a new food
court and new movie theaters. Finally the renovation of the old food
court began, which will be converted to incorporate new entertainment
options and retail brands.
In Paseo Arauco Estación we opened a variety of stores, including a
branch of the Chilean National Treasury Department, offering a valuable
new service to our customers. We remodeled the cinema to include
4DX technology and we are continuing the process of remodeling and
modernizing the commercial space overall as well as one of the food
courts. The mall is also modernizing its signage to help customers navigate
the large mall which surrounds Santiago´s main train and bus station.
In Arauco San Antonio we inaugurated the first 4 star hotel in the city.
Operated by Sonesta, the hotel has a modern infrastructure and cutting
edge design and includes conference rooms and a restaurant. The
addition of new international brands and new restaurants in the food
court contributed to effects to improve the mall overall.
2014 was a great year for Arauco Quilicura which experienced strong
operational growth. Inaugurated in 2013, this year Arauco Quilicura
became the first mall in Chile to obtain LEED certification, thanks to its
sustainable design, construction process and operations. These results
were achieved by working alongside our tenants, who made important
adaptions to their stores to improve the sustainability of their retail
space. Arauco Quilicura continued improving its commercial mix with
the inauguration of the hospital Clinica Megasalud, adding health and
dental care services for the residents of Quilicura. Additional stores
offering clothing and beauty supplies, a gym, a 4DX movie theater, new
banks and restaurants were also added to the commercial mix.
Finally, an important highlight of 2014 was the Energy Efficiency Seal
that was awarded to Paseo Arauco Estacion and Buenaventura Premium
Outlet by the Chilean Agency for Energy Efficiency. Both shopping centers
were recognized for establishing policies of energy efficiency initiatives,
targets and indicators.
PERU
During 2014 we added the first strip center to our portfolio in Peru:
Víamix Chorrillos. This strip center includes a supermarket Metro, a
variety of smaller stores, banks and restaurants in its 4,000 m2 of GLA.
We also expanded and remodeled InOutlet Faucett, formerly known as
Lima Outlet Center, adding 2,500 m2 to the mall´s total GLA.
In Larcomar, we inaugurated new stores and restaurants in order to
improve the mall´s commercial mix. Highlights include the opening
of Desigual and UGG, the first of each of the stores in Peru. With the
goal of improving the customer experience, we launched Larcomaps, a
mobile app that guides visitors through the mall and even back to their
car. We also inaugurated a new area of the mall dedicated to culture
which includes the book store Librería Ibero, La Plaza Theater, a cafe
and other stores offering cultural goods. Finally a VIP parking area and
Valet Parking service were incorporated at Larcomar.
CONSOLIDATED FINANCIAL STATEMENTS
2014 was a year of intense growth in non-traditional formats, and included
the opening of two new outlet malls and three new strip centers. We
opened Arauco Premium Outlet San Pedro, located in Concepcion, with
6,500 m2 of GLA and Arauco Premium Outlet Curauma, in Valparaiso,
with 7,000 m2 of GLA. Both outlets offer customers a variety of premium
brand stores. Additionally the first phase of the expansion of Arauco
Premium Outlet Buenaventura in Santiago was completed and was
partially opened. We opened three new strip centers, adding over 6,000
m2 of GLA and bringing the company´s total to eleven strip centers in
Chile. Manuel Montt, Las Brujas and El Carmen de Huechuraba began
operating in different sectors of Santiago and added to the diversity of
Parque Arauco´s portfolio.
84
In Parque Lambramani, located in Arequipa, we continued improving the
commercial mix of the mall adding new stores and services including the
opening of a new entertaining area for kids and teenagers. The accessibility
to the shopping center was also a focus of improvement, and this year we
renovated the main access of the mall and negotiated the arrival of five
lines of public transport directly to the mall. Additionally, we launched
the mall´s customer rewards system “Puntos Bonus”, which enables
customers to earn points for purchases made in the mall which they
can later use to redeem gifts, therefore encouraging customer loyalty
During 2014, results in all the MegaPlaza shopping centers throughout
Peru were very strong in terms of revenues and EBITDA. In MegaPlaza
Norte, our largest shopping center in Peru, we inaugurated the 4,000 m2
hospital Clinica Integramedica which offers a variety of medical services
to the residents of the northern sector of Lima. We also incorporated
several new stores, including a zone of mini stores, adding to the mall´s
commercial offering.
Finally, with the opening of the Plaza Vea supermarket, MegaPlaza Pisco
was partially opened. What will be the company´s sixth neighborhood
mall will open fully during the first half of 2015.
COLOMBIA
In Colombia, the International Council of Shopping Centers awarded
Parque Arboleda the silver medal in Cause-Related Marketing during
the 2014 Latin American Shopping Center Awards. The shopping center
earned the award for its initiative to plant 2,000 trees in a forest in Pereira
in honor of the 150 year anniversary of the city. Parque Arboleda was
selected out of 170 shopping malls in 13 countries that participated in
the awards. During the year we incorporated a new concept of casual
“restobars”, in order to position the mall as an “After Office” option.
We continued finishing the interior of the Parque Arboleda office tower
which offers high quality, well equipped space for businesses in the city
of Pereira. Finally, we implemented an energy efficiency project that
incorporated LED lighting in the mall´s parking lot, which generates
savings in consumption levels and optimizes the operational expenditure.
During 2014 we began the construction of Parque La Colina in Bogota,
our first shopping center in the capital. With an estimated investment
of US$289 million and 63,500 m2 of GLA, the shopping center will
represent the largest one time investment in Parque Arauco´s history.
The project is on time and within budget.
CONSOLIDATED FINANCIAL STATEMENTS
In Parque Caracoli, we launched Caracoli Mapps, an application similar to
Arauco Mapps and Larcomaps. This was complimented by the installation
of interactive touch screen maps located throughout the mall. Parque
Arauco´s team continued improving the commercial mix of the mall, and
American Eagle opened its second store in all of Colombia in our mall
located in Bucaramanga. We also opened several restaurants and added
stores and services options. Additionally we organized the first Fashion
Week, which featured distinguished models and fashion workshops.
85
FUTURE
DEVELOPMENTS
To date, Parque Arauco has announced projects that will add 106,500 m2
of GLA over the next few years. Developments have been announced in
Chile, Peru and Colombia and the total investment is estimated at US$
524 million. Parque Arauco has a land bank valued at US$ 209 million
(at acquisition cost), which will be used to support future growth and
to develop shopping centers, outlet malls and strip centers in Chile,
Peru and Colombia.
GREENFIELD PROJECTS
ESTIMATED
OPENING
DATE
TOTAL
GLA
(M2)
%
OWNERSHIP
OWNED
GLA
(M2)
TOTAL
INVESTMENT
(MMUS$)
NAME OF THE PROJECT
LOCATION
FORMAT
Stripcenters Chile
(Arauco Express)
Chile
Strip Center
Under
development
14,000
51.0%
7,140
30
SCP
Peru
Strip Center/
Outlet
Under
development
25,000
51.0%
12,750
72
Others MegaPlaza
Peru
Various
Under
development
TBD
50.0%
TBD
118
La Colina
Colombia
Regional
1H 2017
63,500
55.0%
34,925
289
54,815
509
SUBTOTAL
102,500
NAME OF THE PROJECT
LOCATION
FORMAT
ESTIMATED
OPENING
DATE
Boulevard V Kennedy Expansion
Chile
Regional
1Q 2015
1,000
100.0%
1,000
9
MegaPlaza Chimbote Expansion
Peru
Regional
Under
development
2,500
50.0%
1,250
4
MegaPlaza Express Villa
Expansion
Peru
Vecinal
Under
development
500
50.0%
250
2
2,500
15
57,315
524
SUBTOTAL
TOTAL
TOTAL
GLA
(M2)
%
OWNERSHIP
OWNED
GLA
(M2)
TOTAL
INVESTMENT
(MMUS$)
4,000
106,500
CONSOLIDATED FINANCIAL STATEMENTS
EXPANSION PROJECTS
86
LANDBANK
(M2)
% OWNERSHIP
TOTAL COST
(MMUS$)
Quilicura 2
25,486
100%
3
Buenaventura
94,802
100%
13
Coquimbo
40,000
100%
4
Chicureo
47,614
100%
10
Los Andes
40,000
100%
5
Others in Chile
58,000
100%
20
TOTAL CHILE
305,902
100%
55
Parque El Golf
15,000
70%
37
Lurin
67,000
100%
14
La Molina
10,085
51%
16
2,960
51%
2
Landbank IPSA
169,745
50%
19
TOTAL PERU
264,790
64%
88
Barranquilla
56,000
100%
38
Neiva
47,000
100%
11
Valledupar
46,000
55%
17
TOTAL COLOMBIA
149,000
86%
66
719,692
84%
209
NAME
Chile
Peru
Colonial
TOTAL
CONSOLIDATED FINANCIAL STATEMENTS
Colombia
87
ANALYSIS OF
MARKET RISKS
its opening, offering entertainment and service options that the residents
most needed. Thanks to its prime location in the city center, the mall
was the most visited in Chillán.
ACQUISITION
The following are potential risks that the Company may face:
The level of activity/sales of our tenants are linked to economic growth
and consumption growth in each economy in which we operate. The
decline in economic activity may adversely affect the level of sales of our
tenants and therefore affect the Company’s revenues, as a percentage
of our income depends on the level of sales of certain tenants. Of the
86% of Parque Arauco´s revenues that are derived from rental revenues,
approximately 84% are fixed revenues and 16% are variable revenues
that depend on the volume of sales of our tenants.
A general deterioration in the economy could also affect the occupancy
of our shopping centers. However, the contracts between Parque Arauco
and its tenants are generally medium to long term. The Company has a
solid contractual framework as well as a conservative financial position
enabling the company to be prepared to face a potential economic decline.
Parque Arauco does not hold speculative positions in the derivatives
market, the coverage taken will eventually be used to hedge exposures
to foreign exchange risk and interest rates risks due to the nature of
the business sources of financing. The company primarily maintains its
operational and financial income and expenses in the same currency
and in the local currency of each operations location.
The Company is also subject to risks regarding return on investment in
Colombia and Peru, given the evolution of economic variables such as
exchange rates, interest rates and taxes, among other factors.
In the mid 2000´s, Parque Arauco had made the decision to expand
outside of Santiago. Given this, Parque Arauco considered Plaza El
Roble a very attractive potential acquisition, and in 2007 the company
decided to purchase the mall. This purchase aided Parque Arauco´s
strategy of growth and diversification. The company immediately begin
making improvements to the mall, including inaugurating new brands
and improving the overall commercial mix. Improvements to the mall´s
infrastructure were also incorporated as well as a modernized parking area.
2010 EARTHQUAKE
Although the mall was constructed using the highest industry standards,
the earthquake that shook Chile in the summer of 2010 damaged the
mall, forcing it to close temporarily. Chillan was one of the areas most
affected by the earthquake given that the epicenter was less than 200
kilometers from the city. The mall sustained damage to the roof which
forced it to close for a few months, with the exception of the food court
which opened almost immediately after the earthquake in order to aid
the community as it served as a meeting point for residents of the area.
RENOVATION
Taking advantage of the work being done to repair the damage from
the earthquake, Parque Arauco began developing a plan to remodel
the mall´s façade. We also added new GLA by incorporating the Las
Palmas walkway. With a new image and renovated commercial mix, we
retained our title as the preferred shopping mall in the Ñuble province.
In 2012 we began an important expansion project which would add 6,500
m2 and over 40 new stores. We added the department store Hites as
a new anchor store and we added four movie theaters with the latest
technology as well as repositioned the food court.
HISTORY OF ARAUCO CHILLÁN
Construction began on Arauco Chillán, orginally named Plaza El Roble,
in 1995. The project, which was inaugurated in 1996, was owned and
operated by the Rabié group. Built in the city of Chillán, the mall has
been a favored meeting place for the residents of the community since
Today Arauco Chillan´s goal is to fortify the new expansion by ensuring
the commercial mix is ideal for the mall´s customer base. We will
continue working daily to improve our customer´s shopping experience.
CONSOLIDATED FINANCIAL STATEMENTS
CASE STUDY
ARAUCO CHILLÁN
CHALLENGES AND GOALS
88
CONSOLIDATED FINANCIAL
STATEMENTS
BALANCE SHEET
ASSETS
NOTA
12.31.2014 M$
12.31.2013 M$
Cash and Cash Equivalents
5
110,061,086
68,945,796
Other Current Non-Financial Assets
6
3,213,817
3,148,505
Trade Accounts Rec. and Other Rec.
7
19,959,586
18,886,264
Accounts Receivable from Rel. Comp.
8
6,177,439
4,835,906
Current Tax Receivable
9
22,324,529
21,291,112
161,736,457
117,107,583
Current Assets
TOTAL CURRENT ASSETS
Other Non-Current Non-Fin. Assets
6
31,711,183
26,457,899
Non-Current Accounts Receivable
7
326,999
808,364
Non-Current Acc. Rec. with Rel. Part.
8
-
542,191
Share of Profit (Loss) of Associates Accounted
34
53,585,634
49,634,386
Intangible Assets exc. Surplus Value
10
14,750,880
14,987,965
Surplus Value
11
16,383,094
15,629,318
Property, Plant and Equipment
12
2,836,519
2,724,423
Investment Properties
13
1,090,631,422
947,838,880
Deferred Tax Assets
14
41,795,417
26,224,767
1,252,021,148
1,084,848,193
1,413,757,605
1,201,955,776
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CONSOLIDATED FINANCIAL STATEMENTS
Non-Current Assets
89
LIABILITIES
NOTA
12.31.2014 M$
12.31.2013 M$
Other Current Financial Liabilities
15
52,055,207
35,725,785
Comm. Cred. and Other Acc. Payable
18
28,379,202
24,730,681
8
2,195,857
1,902,251
16
1,603,946
2,329,832
9
6,188,840
5,082,793
Current Provisions for Employees
17
3,511,827
2,369,008
Other Current Liabilities
19
1,716,500
3,923,411
95,651,379
76,063,761
Current Liabilities
Current Acc. Payable to Rel. Parties
Current Provisions
Tax Liabilities
TOTAL CURRENT LIABILITIES
Non-Current Liabilities
Other Non-Current Fin. Liabilities
15
421,273,192
405,652,105
Deferred Tax Liabilities
14
106,378,627
75,999,319
Other Non-Current Liabilities
19
10,327,322
8,933,603
537,979,141
490,585,027
633,630,520
566,648,788
336,925,246
233,643,412
(3,736,839)
(3,736,839)
Accumulated Earnings (Losses)
309,444,765
290,550,081
Premium on New Issued Shares
200,964
-
(4,950,870)
(10,112,729)
637,883,266
510,343,925
142,243,819
124,963,063
780,127,085
635,306,988
1,413,757,605
1,201,955,776
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
Issued Share Capital
Treasury Shares
Other Reserves
ATTRIB. TO SHAREHOLDERS OF THE COMPANY
Minority Interest
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
20
CONSOLIDATED FINANCIAL STATEMENTS
Equity
90
CASH FLOW
STATEMENT
CH$ THOUSANDS
12.31.2014 M$
12.31.2013 M$
VAR. %
187,714,344
158,000,601
19%
Net cash flow from OPERATING activities
Receipts from sales of goods and services
(78,680,028)
(53,435,311)
47%
Payments on behalf of employees
Payments to suppliers for goods and services
(13,014,553)
(11,207,846)
16%
Income taxes refunded
(3,067,542)
(5,507,088)
-44%
Other inputs (outputs) in cash
(11,935,793)
(25,621,225)
-53%
81,016,428
62,229,131
30%
(4,890,362)
(19,471,984)
-75%
NET CASH FLOW FROM OPERATING ACTIVITIES
Net Cash flow from INVESTMENT activities
Cash flows used for acquiring subsidiaries or other businesses
Loans to related entities
(1,341,535)
(637,489)
110%
Interest received
3,580,963
4,944,405
-28%
Purchases of property, plant and equipment
(807,381)
(910,576)
-11%
Purchases of intangible assets
(2,143.757)
(778,120)
176%
Proceeds from related entities
542,191
1,259,560
-57%
Dividends received
Purchases of other long-term assets
Other inputs (outputs) in cash
NET CASH FLOW FROM INVESTMENT ACTIVITIES
3,864,307
2,487,089
55%
(115,772,550)
(127,350,099)
-9%
(2,184,032)
(3,398,232)
-36%
(119,152,156)
(143,855,446)
-17%
Share Issuance
118,656,236
13,708,542
766%
Proceeds from long term debt
90,798,328
177,874,969
-49%
Loans to related entities
Proceeds from public debt
Loan Payments
Loan payments to related entities
Financial leasing payments
Dividend payments
1,203,894
1,344,527
-10%
13,329,456
-
N/A
(92,598,650)
(93,667,004)
-1%
-
(2,912,279)
N/A
(2,921,880)
(1,853,610)
58%
(25,211,472)
(19,498,157)
29%
(25,441,700)
(20,665,527)
23%
(440,061)
(4,613,801)
-90%
NET CASH FLOW FROM FINANCING ACTIVITIES
77,374,151
49,717,660
56%
Net increase (decrease) in cash and cash equivalents, before the effect of changes in the
exchange rate
39,238,423
(31,908,655)
-223%
Interest paid
Other inputs (outputs) in cash
Effects of variation in the exchange rate on cash and cash equivalents
1,876,867
(2,927,838)
-164%
Increase (decrease) in net cash and cash equivalent
41,115,290
(34,836,493)
-218%
Cash and cash equivalents at beginning of period
68,945,796
103,782,289
-34%
Cash and cash equivalents at end of period
110,061,086
68,945,796
60%
CONSOLIDATED FINANCIAL STATEMENTS
Net cash flow from FINANCING activities
91
SUMMARIZED FINANCIAL
STATEMENTS
CONTENTS
Constructora y Administradora Uno S.A.________________93
Parque Arauco Internacional S.A.______________________94
Nueva Arauco SPA.__________________________________95
Todo Arauco S.A.____________________________________96
Plaza El Roble S.A.___________________________________97
Comercial Arauco Ltda._______________________________98
Inmobiliaria Paseo De la Estacion S.A. y Filial___________99
Desarrollos Inmobiliarios San Antonio S.A.___________ 100
Inversiones Parque Arauco Uno S.A._________________ 101
Inversiones Parque Arauco Dos S.A._________________ 102
Centros Comerciales Vecinales Arauco
Express S.A. y Filiales______________________________ 103
Parque Arauco S.A.
M$: thousands of Chilean pesos
MUS$: thousands of U.S. dollars
CONSTRUCTORA Y
ADMINISTRADORA UNO S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
SUMMARIZED BALANCE SHEET
2014
M$
2013
M$
3,048,256
3,150,845
Assets
Current assets
Non-current assets
TOTAL ASSETS
111,599,203
91,621,960
114,647,459
94,772,805
2,309,547
2,349,845
Liabilities and Equity
Current liabilities
Non-current liabilities
34,005,367
33,942,380
Equity attributable to equity holders of the company
78,332,545
58,480,580
114,647,459
94,772,805
17,693,661
16,689,145
Cost of sales
(4,668,737)
(4,487,144)
GROSS PROFIT
13,024,924
12,202,001
Administrative expenses
(2,729,501)
(2,794,713)
21,993
6,140
(885,827)
(1,052,667)
(231)
(210)
Minority interest
TOTAL LIABILITIES
Revenue from ordinary activities
Financial income
Financial expenses
Foreign exchange differences
Share of profits (losses) of associates accounted
(124,312)
37,328
(784,246)
(524,386)
(58,794)
(765,211)
Income tax
(6,071,237)
(2,031,427)
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
19,328,944
8,079,196
NET PROFIT (LOSS)
21,721,713
13,156,051
21,721,713
13,156,051
-
-
21,721,713
13,156,051
Income (loss) for indexed assets and liabilities
Other income/expenses
Net Profit (loss) attributable to equity holders of the company
Net Profit (loss) attributable to minority interest
NET PROFIT (LOSS)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
9,762,624
9,252,353
(825,611)
(2,035,370)
(9,033,520)
(7,095,940)
(96,507)
121,043
(96,507)
121,043
211,163
90,120
114,656
211,163
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Summarized Income Statement
93
PARQUE ARAUCO
INTERNACIONAL S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31,
2014 AND 2013
2014
USD
2013
USD
Current assets
181,324,969.02
114,076,348.82
Non-current assets
768,273,935.76
476,997,559.56
TOTAL ASSETS
949,598,904.78
591,073,908.38
SUMMARIZED BALANCE SHEET
Assets
Liabilities and Equity
Current liabilities
39,073,178.65
30,831,480.84
Non-current liabilities
289,576,084.10
230,173,990.63
Equity attributable to equity holders of the company
423,016,020.93
217,804,143.76
197,933,621.10
112,264,293.15
949,598,904.78
591,073,908.38
76,859,454.93
48,538,405.95
(21,528,699.33)
(13,923,972.48)
55,330,755.60
34,614,433.47
(12,416,506.56)
(7,862,952.99)
3,465,658.76
2,286,422.28
(18,419,775.32)
(10,164,716.54)
(847,229.36)
(3,319,987.22)
726,796.01
(931,968.41)
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Cost of sales
GROSS PROFIT
Administrative expenses
Financial income
Financial expenses
Foreign exchange differences
Share of profits (losses) of associates accounted
Other income/expenses
(1,389,769.75)
(2,108,805.68)
Income tax
(11,576,721.24)
(11,438,444.76)
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
(6,870,269.66)
17,926,910.25
NET PROFIT (LOSS)
8,002,938.48
19,000,890.40
Net Profit (loss) attributable to equity holders of the company
7,465,968.45
8,647,661.92
Net Profit (loss) attributable to minority interest
536,970.03
10,353,228.48
8,002,938.48
19,000,890.40
22,005,792.27
22,698,458.68
Net cash flow from (used in) investment activities
(121,453,577.28)
(124,317,787.36)
Net cash flow from (used in) financing activities
153,020,280.05
150,515,038.73
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
53,572,495.03
48,895,710.05
Effects of variation of the exchange rate on cash and equivalents
(5,461,270.40)
(3,437,206.75)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
48,111,224.64
45,458,503.30
79,817,991.66
23,538,800.18
127,929,216.30
68,997,303.48
NET PROFIT (LOSS)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Income (loss) for indexed assets and liabilities
94
NUEVA
ARAUCO SPA
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
SUMMARIZED BALANCE SHEET
2014
M$
Assets
Current assets
67,973
Non-current assets
363,675
TOTAL ASSETS
431,648
Liabilities and Equity
Current liabilities
Non-current liabilities
Equity attributable to equity holders of the company
776,788
(345,140)
Minority interest
TOTAL LIABILITIES
431,648
Summarized Income Statement
-
Cost of sales
-
GROSS PROFIT
-
Administrative expenses
(2,703)
Financial income
-
Financial expenses
-
Foreign exchange differences
Share of profits (losses) of associates accounted
(54,353)
(282,640)
Income (loss) for indexed assets and liabilities
-
Other income/expenses
-
Income tax
-
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
-
NET PROFIT (LOSS)
(339,696)
Net Profit (loss) attributable to equity holders of the company
(339,696)
Net Profit (loss) attributable to minority interest
NET PROFIT (LOSS)
0
(339,696)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
-
Net cash flow from (used in) investment activities
-
Net cash flow from (used in) financing activities
-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
-
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
-
Cash and cash equivalents at the beginning of the period
-
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
-
CONSOLIDATED FINANCIAL STATEMENTS
Revenue from ordinary activities
95
TODO
ARAUCO S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
2014
M$
2013
M$
2,716,240
1,306,568
Non-current assets
50,806,626
31,950,037
TOTAL ASSETS
53,522,866
33,256,605
SUMMARIZED BALANCE SHEET
Assets
Current assets
Liabilities and Equity
Current liabilities
46,845,994
22,128,703
Non-current liabilities
3,930,923
6,477,078
Equity attributable to equity holders of the company
2,745,949
4,650,824
53,522,866
33,256,605
4,677,833
3,513,593
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Cost of sales
(1,472,763)
(973,247)
GROSS PROFIT
3,205,070
2,540,346
Administrative expenses
(864,061)
(526,828)
60,232
11,600
(1,926,613)
(874,523)
(1,368)
(60)
82,174
(170,870)
Financial income
Financial expenses
Foreign exchange differences
Income (loss) for indexed assets and liabilities
Other income/expenses
(14,849)
(532,859)
1,550,543
(2,269,370)
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
(3,912,215)
6,130,229
NET PROFIT (LOSS)
(1,821,087)
4,307,665
Net Profit (loss) attributable to equity holders of the company
(1,821,087)
4,307,665
Income tax
Net Profit (loss) attributable to minority interest
-
-
(1,821,087)
4,307,665
(6,921,385)
460,425
(23,881,088)
(13,048,699)
30,761,741
12,661,465
(40,732)
73,191
(40,732)
73,191
Cash and cash equivalents at the beginning of the period
91,890
18,699
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
51,158
91,890
NET PROFIT (LOSS)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CONSOLIDATED FINANCIAL STATEMENTS
Share of profits (losses) of associates accounted
96
PLAZA
EL ROBLE S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
2014
M$
2013
M$
2,160,111
1,273,295
Non-current assets
40,532,146
34,656,790
TOTAL ASSETS
42,692,257
35,930,085
SUMMARIZED BALANCE SHEET
Assets
Current assets
Liabilities and Equity
Current liabilities
560,580
1,195,764
Non-current liabilities
20,752,382
12,732,547
Equity attributable to equity holders of the company
21,379,295
22,001,774
42,692,257
35,930,085
5,706,199
5,171,145
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Cost of sales
(1,664,745)
(1,241,533)
GROSS PROFIT
4,041,454
3,929,612
Administrative expenses
(957,005)
(954,380)
1,637
9,435
(665,212)
(350,438)
(431,481)
(190,156)
Other income/expenses
(21,142)
(21,004)
Income tax
797,137
73,660
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
(4,436,190)
(1.585.870)
NET PROFIT (LOSS)
(1,670,802)
910,859
Net Profit (loss) attributable to equity holders of the company
(1,670,802)
910,859
Financial income
Financial expenses
Foreign exchange differences
Income (loss) for indexed assets and liabilities
Net Profit (loss) attributable to minority interest
NET PROFIT (LOSS)
-
-
(1,670,802)
910,859
1,013,450
1,892,513
(7,729,642)
(5,761,673)
6,644,945
3,834,122
(71,247)
(35,038)
(71,247)
(35,038)
75,974
111,012
4,727
75,974
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Share of profits (losses) of associates accounted
97
COMERCIAL
ARAUCO LTDA.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31,
2014 AND 2013
SUMMARIZED BALANCE SHEET
2014
M$
2013
M$
-
-
2,187
1,338
(2,187)
(1,338)
-
-
-
-
Assets
Current assets
Non-current assets
TOTAL ASSETS
Liabilities and Equity
Current liabilities
Non-current liabilities
Equity attributable to equity holders of the company
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Cost of sales
-
-
GROSS PROFIT
-
-
(849)
(692)
NET PROFIT (LOSS)
(849)
(692)
Net Profit (loss) attributable to equity holders of the company
(849)
(692)
Administrative expenses
Financial income
Financial expenses
Foreign exchange differences
Share of profits (losses) of associates accounted
Income (loss) for indexed assets and liabilities
Other income/expenses
Income tax
Net Profit (loss) attributable to minority interest
NET PROFIT (LOSS)
-
-
(849)
(692)
-
-
-
-
-
-
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
98
INMOBILIARIA PASEO
DE LA ESTACION S.A. Y FILIAL
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
SUMMARIZED BALANCE SHEET
2014
M$
2013
M$
15,491,569
8,764,139
95,993,422
92,433,972
111,484,991
101,198,111
Assets
Current assets
Non-current assets
TOTAL ASSETS
Liabilities and Equity
Current liabilities
10,333,573
5,403,127
Non-current liabilities
27,195,437
23,148,601
Equity attributable to equity holders of the company
73,793,012
72,520,676
162,969
125,707
111,484,991
101,198,111
16,877,409
16,318,807
Cost of sales
(3,903,959)
(3,886,810)
GROSS PROFIT
12,973,450
12,431,997
Administrative expenses
(2,281,573)
(2,254,054)
472,380
459,780
(715,494)
(259,858)
(101,117)
(78,400)
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Financial income
Financial expenses
Foreign exchange differences
Income (loss) for indexed assets and liabilities
Other income/expenses
Income tax
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
NET PROFIT (LOSS)
Net Profit (loss) attributable to equity holders of the company
Net Profit (loss) attributable to minority interest
NET PROFIT (LOSS)
(57,400)
(84,896)
(2,165,267)
(2,867,870)
2,629,674
4,157,945
10,754,653
11,504,644
10,703,461
11,452,237
51,192
52,407
10,754,653
11,504,644
10,781,149
8,768,172
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
(757,943)
(465,377)
(10,017,328)
(8,309,540)
5,878
(6,746)
5,878
(6,746)
Cash and cash equivalents at the beginning of the period
441,047
447,793
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
446,925
441,047
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CONSOLIDATED FINANCIAL STATEMENTS
Share of profits (losses) of associates accounted
99
DESARROLLOS INMOBILIARIOS
SAN ANTONIO S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
SUMMARIZED BALANCE SHEET
2014
M$
2013
M$
939,849
1,213,810
24,676,119
23,880,502
25,615,968
25,094,312
Assets
Current assets
Non-current assets
TOTAL ASSETS
Liabilities and Equity
Current liabilities
701,542
697,766
Non-current liabilities
31,234,697
30,811,736
Equity attributable to equity holders of the company
(6,320,271)
(6,415,190)
25,615,968
25,094,312
4,680,403
4,598,948
(1,830,180)
(1,687,269)
2,850,223
2,911,679
(1,057,959)
(898,150)
56,900
42,178
(1,158,807)
(1,205,302)
(1,238,186)
(461,695)
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Cost of sales
GROSS PROFIT
Administrative expenses
Financial income
Financial expenses
Foreign exchange differences
Share of profits (losses) of associates accounted
Income (loss) for indexed assets and liabilities
Other income/expenses
(29,348)
(11,005)
Income tax
407,706
329,980
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
(563,463)
(1,334,282)
NET PROFIT (LOSS)
(732,934)
(626,597)
Net Profit (loss) attributable to equity holders of the company
(732,934)
(626,597)
(732,934)
(626,597)
1,844,464
2,168,441
NET PROFIT (LOSS)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
(86,886)
(43,400)
(1,896,946)
(2,132,260)
(139,368)
(7,219)
(139,368)
(7,219)
147,844
155,063
8,476
147,844
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Net Profit (loss) attributable to minority interest
100
INVERSIONES
PARQUE ARAUCO UNO S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
SUMMARIZED BALANCE SHEET
2014
M$
2013
M$
77,340
50,226
6,709,111
6,572,963
6,786,451
6,623,189
Assets
Current assets
Non-current assets
TOTAL ASSETS
Liabilities and Equity
Current liabilities
Non-current liabilities
Equity attributable to equity holders of the company
421
97,434
5,987,588
5,414,880
798,442
1,110,875
6,786,451
6,623,189
23,371
-
(23,032)
(89,289)
339
(89.289)
(1,408)
(1,150)
-
-
(246,518)
(190,186)
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Revenue from ordinary activities
Cost of sales
GROSS PROFIT
Administrative expenses
Financial income
Financial expenses
Foreign exchange differences
-
-
Share of profits (losses) of associates accounted
-
-
(189,240)
(109,531)
Income (loss) for indexed assets and liabilities
Other income/expenses
(2,903)
-
Income tax
73,033
62,830
-
-
NET PROFIT (LOSS)
(366,697)
(327,325)
Net Profit (loss) attributable to equity holders of the company
(366,697)
(327,325)
(366,697)
(327,325)
(119,924)
(19,932)
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
NET PROFIT (LOSS)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
(108)
(4,672,502)
120,032
4,692,434
-
-
-
-
Cash and cash equivalents at the beginning of the period
1,929
1,929
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
1,929
1,929
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CONSOLIDATED FINANCIAL STATEMENTS
Net Profit (loss) attributable to minority interest
101
INVERSIONES
PARQUE ARAUCO DOS S.A.
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
2014
M$
2013
M$
464,171
3,483,840
Non-current assets
27,207,728
25,041,274
TOTAL ASSETS
27,671,899
28,525,114
SUMMARIZED BALANCE SHEET
Assets
Current assets
Liabilities and Equity
Current liabilities
550,986
359,445
Non-current liabilities
21,170,903
25,028,247
Equity attributable to equity holders of the company
5,950,010
3,137,422
27,671,899
28,525,114
Revenue from ordinary activities
4,574,929
2,822,490
Cost of sales
(1,511,087)
(1,072,163)
GROSS PROFIT
3,063,842
1,750,327
(565,516)
(444,419)
762
3,149
(943,480)
(807,557)
(750,281)
(392,582)
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Administrative expenses
Financial income
Financial expenses
Foreign exchange differences
Share of profits (losses) of associates accounted
Income (loss) for indexed assets and liabilities
Other income/expenses
(20,518)
7,623
(680,625)
424,800
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
2,495,521
(1,969,427)
NET PROFIT (LOSS)
2,599,705
(1,427,986)
Net Profit (loss) attributable to equity holders of the company
2,599,705
(1,427,986)
2,599,705
(1,427,986)
5,905,683
(25,682)
Income tax
NET PROFIT (LOSS)
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
(385,259)
(9,436,037)
(5,563,170)
9,509,906
(42,746)
48,187
(42,746)
48,187
Cash and cash equivalents at the beginning of the period
53,057
4,870
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
10,311
53,057
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CONSOLIDATED FINANCIAL STATEMENTS
Net Profit (loss) attributable to minority interest
102
CENTROS COMERCIALES VECINALES ARAUCO
EXPRESS S.A. Y FILIALES
FOR THE FINANCIAL YEARS ENDING DECEMBER 31, 2014
AND 2013
2014
M$
2013
M$
Current assets
4,354,920
4,313,423
Non-current assets
39,321,423
25,869,095
43,676,343
30,182,518
SUMMARIZED BALANCE SHEET
Assets
TOTAL ASSETS
Liabilities and Equity
Current liabilities
2,719,767
1,291,125
Non-current liabilities
15,823,874
11,436,066
Equity attributable to equity holders of the company
24,631,081
16,978,388
501,621
476,939
43,676,343
30,182,518
Revenue from ordinary activities
2,614,094
2,239,232
Cost of sales
(764,658)
(562,480)
GROSS PROFIT
1,849,436
1,676,752
(921,743)
(327,761)
53,332
175,359
(738,982)
(407,278)
(597,015)
(235,429)
Minority interest
TOTAL LIABILITIES
Summarized Income Statement
Administrative expenses
Financial income
Financial expenses
Foreign exchange differences
Income (loss) for indexed assets and liabilities
Other income/expenses
(4,459)
(154,023)
634,565
78,714
Gain (loss) from the difference between the previous book value and the fair value of
financial assets
2,329,940
(1,121,622)
NET PROFIT (LOSS)
2,605,074
(315,288)
Net Profit (loss) attributable to equity holders of the company
2,594,328
(388,126)
Income tax
Net Profit (loss) attributable to minority interest
NET PROFIT (LOSS)
10,746
72,838
2,605,074
(315,288)
1,425,373
292,083
(10,947,250)
(3,377,519)
7,370,658
5,258,674
(2,151,219)
2,173,238
(2,151,219)
2,173,238
2,189,019
15,781
37,800
2,189,019
Summarized Cash Flow Statement
Net cash flow from (used in) operating activities
Net cash flow from (used in) investment activities
Net cash flow from (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, BEFORE THE
IMPACT OF FOREIGN EXCHANGE RATE DIFFERENCES
Effects of variation of the exchange rate on cash and equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
CONSOLIDATED FINANCIAL STATEMENTS
Share of profits (losses) of associates accounted
103
Parque Arauco S.A.
Cerro Colorado 5240
Torre 1, Piso 15
Las Condes, Santiago