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ANNUAl report 2014

32

1. letter FroM tHe CHAIrMAN

2. MAJor proJeCtS

3. eXeCUtIVe SUMMArY

4. looKING BACKWArDS

8. oUr teAM

10. DISCloSUreS IN 2014

CHApter 12 (IN ItS eNtIretY) AND CHApterS 13 AND 14 Are IN tHe AttACHeD CD

04

10

40

46

2014ANNUAl report oFeCHeVerrIA IZQUIerDo

5. ABoUt US

6. ACtIVItIeS AND BUSINeSSeS6.1 Areas of Business and Fields of Specialization (Real

Estate, Industrial Erection, Construction, Deep Foundations, Post-tensioning, Civil Works, Concessions)

6.2 The Industry

7. rISK MANAGeMeNt

11. SUBSIDIArIeS AND ASSoCIAteS11.1 The Corporate Structure of Echeverría Izquierdo S.A.

11.2 Echeverría Izquierdo Inmobiliaria e Inversiones S.A.

11.3 Echeverría Izquierdo Montajes Industriales S.A.

11.4 Echeverría Izquierdo Ingeniería y Construcción S.A.

11.5 Echeverría Izquierdo Edificaciones S.A.

11.6 Pilotes Terratest S.A.

11.7 Inversiones CHR S.A.

11.8 Inversiones Newall S.A.

12. SeleCteD FINANCIAl DAtA oN eCHeVerrÍA IZQUIerDo

50

76

94

100

106

110

112

124

9. INVeStMeNt AND FINANCe polICIeS

Electromechanical erection of Power Boiler, Unit 4 (Campiche 240 MW Coal-Fired Power Project), Ventanas, Chile.

54

On behalf of the board of directors of Echeverría Izquierdo S.A. (EISA), it is my pleasure to inform you of the main events occurring in our group of companies during the 2014 fiscal year.

In 2014, we continued to restructure the Company in the aim of adapting to the new reality of our principal markets and of improving the competitiveness of some of the EISA subsidiaries.

Although we were able to reverse the losses in 2013 and earn a profit, income in 2014 was still somewhat adversely affected as a result of construction contracts signed at the end of the previous decade and projects abroad. As we said last year, some of these contracts contain clauses that enable us to predict a partial recovery of these losses over the coming fiscal years.

The Chilean economy grew just 1.8% in 2014. According to figures of the Cámara Chilena de la Construcción , investment in the sector fell 0.7%. Investment in private productive infrastructure also declined -1.5%, which is where most of our activity lies.

In order to offset part of that slowdown, a significant commercial effort was made during 2014 that enabled us to keep sales similar to the previous year and a total backlog of 169 billion pesos, which is 4% below what we had as of the same date in the previous year. I want to emphasize that 17% of this backlog was due our undertaking a business new to our company, namely major civil works for the Santiago Metro System, specifically Line 3 and Line 6, which we are building in a consortium with a foreign company.

ANAlYSIS BY BUSINeSS UNIt

In 2014, the industrial erection subsidiary had very good results, accounting for 55%(*) of our total revenues. Of note were environmental improvements to thermoelectric power plants such as the Flue Gas Desulfurization (FGD) electromechanical erection and other works for Unit 5 of AES Gener’s Guacolda complex, the erection of a gas desulfurization system for Unit 1 of the Endesa Bocamina Power Plant, and the erection of the FGD System for Units 1 and 2 of AES Gener’s Ventanas Power Plant.

1. letter FroM tHe CHAIrMAN

(*) Considera el 100% de las filiales que se consolidan, y la prórrata de las asociadas que no consolidan.

76

In conjunction with Nexxo, it finished dismantling the second production line at the Methanex Plant in Punta Arenas so that it could be moved to the United States.

A second construction project was developed in Brazil that entailed the electrome-chanical erection of the causticizing plant and lime kiln of CMPC in the Guaiba Project in Porto Alegre.

In Peru, construction of the 200 MW simple cycle unit in the Chilca Thermoelectric Power Plant ended and erection began of a 700 MW simple cycle power plant in Mollendo.

The industrial solutions subsidiary continued developing EPC projects with our industrial erection subsidiary. Some of the most notable are the liquefied petroleum gas (LPG) storage plant for Oxiquim in Quintero and the secondary and tertiary crushing line for Minera Centinela, owned by Antofagasta Minerals.

Towards the end of the year, we were awarded several large-scale mining projects, among them the construction of the water tower at Minera Collahuasi and the enlargement of the pyrite plant for Minera Centinela.

In 2014, our construction subsidiaries concluded the remodeling of the Santiago Airport, which entailed an enlargement and remodeling of more than 30 thousand square meters.

Five office buildings were completed in Santiago measuring a total of 235 thousand square meters. This kept us at the forefront of the office building construction market.

At year-end, we made the decision to engage once again in building apartment towers for others and we have already been awarded the first few projects in this segment.

Construction of the Rancagua Hospital also concluded, which we were building as a member of the Rancagua Hospital Consortium. This is the most important public infrastructure work in the Region of O’Higgins and one of the largest hospitals in Latin America. In Peru, progress was made in building two important office buildings in the financial center of Lima as part of a consortium with a local partner. We are also building an underground public parking structure.

Our real estate subsidiary again performed outstandingly, completing apartment projects on Independencia and Santa Rosa Avenues in Santiago. It also began to sell the 262 apartments in buildings in the El Llano Sector in the Municipality of San Miguel and another 368 apartments in a tower on Macul Avenue. Land was acquired on Alvarez Street in Viña del Mar to develop an 229- apartment building. Construction also began of a 270-apartment building in Concepción in a partnership with others.

Finally, the preliminary works in the Puerto Nuevo (New Port) Project of Antofagasta kicked off that we are developing with other partners. It will be a mixed complex measuring 74 thousand square meters that will include a hotel, aparthotel, offices, business square and parking.

Our subsidiaries Pilotes Terratest Chile and Peru continued to be leaders in both countries. In 2014, they built the first piles with diameters of 1.8 and 2 meters in the country as part of the foundations for the Temuco-Padre Las Casas bridge and the Las Chilcas viaduct on Highway 5 North.

The large-diameter pile project for Minera Escondida’s OGP1 project ended successfully and the waterproofing curtain wall was built for Minera Andina of Codelco using the jet grouting method. A post-tensioned anchor prefabrication plant was installed for rock and ground that will significantly raise the quality standard of those materials in the country.

A new machine was purchased for large-diameter piles that has the greatest capacity in the country. In Peru, we built the first stone columns to mitigate liquefaction in a maritime work at the north pier in Callao.

By building the new lines 3 and 6 of the Santiago Metro system, our new Civil Works division became the most important civil works performer in a consortium with another company. It 7 attained yields in urban tunnel construction in this work never before seen in Chile, thanks to the latest technology and highly skilled personnel.

During the year, we were awarded new contracts besides the civil works contracts for segments 3 and 4 of new Line 6, such as the tunnel connecting lines 3 and 6 and segment 2b of Line 6, representing more than 9 kilometers of tunnels and 5 stations on Line 6, the Ñuble Station connecting to Line 5, to the National Stadium Station and to Ñuñoa Station, and the Inés de Suárez Station of Line 3 and the Los Leones Station with a connection to Line 1.

Our subsidiary Nexxo, in which we are part owners with the Jander family, is now at the top in the long-term maintenance of large industrial plants, especially petrochemical and mining facilities. Towards the end of last year, it had 16 long-term contracts with 6 different clients.

As for highly specialized maintenance services, where we are an undisputed leader in the country, we continued to reinforce our leadership in South America. We would like to highlight some projects performed abroad in 2014: hydrokinetic cleaning of three units of the Costanera Thermoelectric Power Plant in Buenos Aires, Argentina; chemical cleaning of the boiler of the Termosajer Thermoelectric Power Plant 1 in Colombia; the start of the replacement of catalysts in more than 90 reactors at the Reficar Refinery in Cartagena, Colombia; the replacement of catalysts in two reactors; and the mechanical decoking of two furnaces in the Unibon Refinery in Barrancabermeja in Colombia.

Yet the most important milestone in Nexxos internalization in 2014 was the decision to enter the oil refinery catalyst management market in Brazil in conjunction with Contract Resources, a transnational company. We expect to begin the first works in mid-2015.

Our subsidiary VSL, in which we are partners with the multinational of the same name in Chile, Peru and Argentina, also performed well.

98

Fernando Echeverría VialChairman of the BoardEcheverría Izquierdo S.A.

In Chile, it continued to be the absolute leader in the specialized post-tensioned paving and floor slab market. Works of renown are the Clinica Dávila (Private Hospital), Clinica Vespucio (Private Hospital) and Clinica Indisa (Private Hospital) projects and the paving for Megafrio.

In Peru, we gained a very significant market share in post-tensioned slabs for office buildings.

StrAteGY

Last year we reformulated our strategy for 2015-2018. Our efforts in the coming years will be focused on growing and improving operating efficiency and productivity grounded on our specialties and market segments with the highest margin.

This new plan will require investments of around 200 billion pesos, but we will double our total income by 2018 and significantly improve margins.

Our income from the Real Estate Business will increase considerably. Our aim is to raise it from around 5% of our total income at this time to 16% by 2018.

In the areas of industrial erection and EPC projects, we are planning to augment our income notably to double what it is today.

Most of the growth will be focused in Chile, but we will not neglect our actual positions abroad and we do intend to strengthen them, especially our presence in Peru.

oUr people

All of this would not have been, nor will it be, possible without the commitment of our more than 7 thousand collaborators. The company’s efforts were heavily geared towards retaining the actual team of workers while awaiting a recovery in the economy. Gladly, we achieved that goal. We were able to keep the number of our employees stable compared to the end of the previous year.

We have actively pursued our zero-accident policy. Our 2014 accident rates were 0.68 in the industrial erection business and 2.6 in the construction business. Both compare very favorably to the global rates for the construction sector, which were 4.4%.(*)

During the year, more than 1,700 workers were trained in different subjects that took around 35 thousand hours.

BAlANCe SHeet

During the 2014 fiscal year, Echeverría Izquierdo earned consolidated income of $216,591,000,000 pesos, which is a drop of 7% compared to the previous fiscal year.

However, the income after taxes attributable to the controller totaled $3,233,000,000, which is an improvement over the loss that we experienced in the previous year.

Our EBITDA totaled $9,914,000,000, or an increase of 51% compared to the previous fiscal year.

During 2015, our mission will be to consolidate our leadership in engineering and construction in the country and maintain a presence in sectors in neighboring countries where we have comparative advantages. We plan to diversify our sources of income, taking into account the new features of the market, in addition to making the investments made in recent years profitable.

Lastly, I would like to emphasize that this important level of activity undertaken in recent years has been possible solely thanks to the trust placed in us by our clients and suppliers and the commitment of our collaborators. I want to thank all of them very specially.

Sincerely,

(*) This is the rate for companies who are members of the Mutual Safety Association

1110

2. MAJor proJeCtS

The civil works to build the shaft, tunnel and gallery for the connection of Line 6 to Line 3 of the Santiago Metro System, Chile.

eCHeVerrÍA IZQUIerDo MoNtAJeS INDUStrIAleS

1. Mechanical Installation in Unit 5 of the Guacolda Power Plant, Huasco, Copiapo, Chile.

2. Electromechanical Erection of the Causticizing Plant and Lime Kiln for Celulosa CMPC in Guaíba, Brazil.

3. Dismantling of the Cabo Negro Methanol Plant in Punta Arenas, Chile.

4. Flue Gas Desulfurization System for Unit 1 of Endesa’s Bocamina Power Plant in Coronel, Chile.

5. Civil Works and Electromechanical Erection of the Thickening and Tailings Area for the Ministro Hales Mine of Codelco in Calama, Chile.

eCHeVerrÍA IZQUIerDo SolUCIoNeS INDUStrIAleS

6. Oxiquim’s liquefied gas storage terminal in the Region of Valparaiso, Chile.

7. Secondary and tertiary crushing line for Metso/Minera Centinela, Sierra Gorda, Region of Antofagasta, Chile.

eCHeVerrÍA IZQUIerDo eDIFICACIoNeS

8. Nueva Las Condes 7 building, Stgo. - Chile

9. The Guernica Building, Santiago - Chile

10. Nueva Apoquindo Building, Santiago - Chile

11. Torre Orquídeas (Orchid Tower) Building, Lima - Perú

12. Apoquindo 5858 building , Santiago - Chile

eCHeVerrÍA IZQUIerDo INGeNIerÍA Y CoNStrUCCIóN

13. The civil works for the shafts, galleries and tunnels in segment 2b, segment 3 and segment 4 of Line 6 of the Santiago Metro System.

14. The civil works for the shaft, gallery and tunnel connecting Line 6 to Line 3 of the Santiago Metro System.

eCHeVerrÍA IZQUIerDo INMoBIlIArIA

15. Antofagasta Project, Antofagasta, Chile.

16. Nativo Macul Project, Santiago, Chile.

17. Aires del Llano Project, Santiago, Chile.

18. San José de la Sierra Project, Santiago, Chile.

pIloteS terrAteSt

19. Stage II of the Costanera Norte (North River Road) improvement, Santiago, Chile.

20. Treng Treng and Kay Kay suspension bridge, Temuco, Chile.

21. Raki wind farm, Region of the Bio-Bio, Chile.

22. Construction of new Lines 3 and 6, Santiago Metro System.

VSl

23. The building for the Cámara Chilena de la Construcción, Santiago, Chile.

24. Clínica Dávila (Private Hospital), Santiago - Chile

25. Clínica Vespucio (Private Hospital), Santiago - Chile

1312

MeCHANICAl INStAllAtIoN At UNIt 5 oF tHe GUAColDA poWer plANt,HUASCo, CopIApo - CHIleThe project entails building the fifth unit at the Guacolda ThermoelectricComplex. The work involves electromechanical erection of the FGD, Silicon-Controlled Rectifier (SCR), Electrostatic Precipitator, fly ash and bottom ash systems, associated ducts, piping and sea water intake equipment.

eleCtroMeCHANICAl ereCtIoN oF tHe CAUStICIZING plANt AND lIMe KIlN For CelUloSACMpC IN GUAÍBA - BrAZIlThe work encompasses mechanical erection, heat insulation, commissioning and start-up.

1514

DISMANtlING oF tHe CABo NeGro MetHANol plANt IN pUNtA AreNAS - CHIleThe complete dismantling of the structures, equipment, mechanical, electrical and piping elements of the third production line of the METHANEX methanol plant.

FlUe GAS DeSUlFUrIZAtIoN SYSteM For UNIt 1 oF tHe BoCAMINA poWer plANt oF eNDeSAIN CoroNel - CHIleThe civil works and electromechanical erection of the desulfurization system for the Bocamina I coal-fired power plant of Endesa.

1716

oXIQUIM’S lIQUeFIeD GAS StorAGe terMINAl IN QUINtero, reGIoN oF VAlpArAISo - CHIleThe design, procurement and construction of the liquefied gas receivingand storage system to and from tankers. The project consists of a vertical refrigerated tank that can hold 50,000 m3, the system to supply liquefied gas to the Sonacol oil pipeline and the storage of liquefied gas and loading it into tank trucks.

CIVIl WorKS AND eleCtroMeCHANICAl ereCtIoN oF tHe tHICKeNING AND tAIlINGS AreA oF tHe MINIStro HAleS MINe oF CoDelCo IN CAlAMA - CHIleThe contract was to build the Tailings Thickening and Conveyance Areas and Infrastructure of the Ministro Hales Project owned by the Minister Hales Division of Codelco. The contract covered civil works, erection of mechanical equipment, piping, electrical equipment and instrumentation.equipos eléctricos y de instrumentación.

1918

SeCoNDArY AND tertIArY CrUSHING lINe For MetSo/MINerA CeNtINelA IN SIerrA GorDA,reGIoN oF ANtoFAGAStA - CHIle.The design and procurement of ancillary equipment and construction of a secondary and tertiary crushing line with a capacity of 20 thousand tons per day at Minera Centinela, subcontracted by our client, Metso Minerals.The work consisted of performing the civil and electrical engineering, procuring ancillary equipment and completely building the plant procured by Metso. The contract also included erection of a geodesic dome.

2120

NUeVA lAS CoNDeS 7 BUIlDING, SANtIAGo - CHIleThis is a project by Inmobiliaria Sinergia for a 22-floor officebuilding with 8 underground levels (54,000 m2) in the New LasCondes sector. It was built in the two-year period 2013-2015.

GUerNICA BUIlDING, SANtIAGo – CHIleThis is a Class A office building located on Andrés Bello Avenue in Providencia. It is 14 floors high, measures 20,531 m2, with open layouts of 630 to 870 m2 and independent stores. This project was built in the period 2013-2014.

2322

NUeVA ApoQUINDo, SANtIAGo - CHIleThis is a project by Inmobiliaria FFV. It is a new business center in Las Condes comprised of three buildings, each of 23 floors, located on land where the old Italian School used to be on Apoquindo Avenue. The constructed surface measures 138,670 m2, the open layout floors have 1,100 useful square meters and there will be stores on the first floor. This project was built over the three-year period 2011-2014.

2524

ApoQUINDo 5858, SANtIAGo - CHIleThis office building is located at the corner of Apoquindo Avenue and O’Connell Street. It measures 54,487 m2 in 22 floors with 7 underground levels. Construction started in 2014 and will conclude in 2016.

torre orQUIDeAS (orCHID toWer), lIMA – perúThis is an office building in the San Isidro business hub in Lima. The building measures 50,400 m2 in 27 floors with 10 underground levels. It was built between 2013 and 2015.

2726

CIVIl WorKS For tHe SHAFt, GAllerY AND tUNNel IN tHe CoNNeCtIoN oF lINe 6 to lINe 3 IN tHe SANtIAGo Metro CHIle SYSteMA tunnel 1,500 meters long is being built under this contract to connect Line 3 to Line 6 of the underground train. It is a one-track tunnel that will be used mainly to change trains between both lines. Progress in the work is at around 7%.Given the emplacement, limited space and narrow work sections, the experience gained in performing other contracts has been of great value. The use of innovative technology has beenindispensable in achieving the forecasted goals.

CIVIl WorKS For SHAFtS, GAllerIeS AND tUNNelS IN SeGMeNtS 2B, 3 AND 4 oF lINe 6 oF tHe SANtIAGo, Metro CHIle SYSteM.We have three contracts to build an 8-km tunnel from the Ñuble Station inÑuñoa to the Los Leones Station in Providencia, running through the future National Stadium, Ñuñoa and Inés de Suárez Stations. The contracts also include 5 intermediate shafts that were needed to perform the construction. The main works pertain to excavation and the bracing of shafts, galleries and tunnels of stations and in between stations on line 6 in the Santiago Metro system. 75% of segment 3 and 50% of segment 4 are ready, and segment 2b is just beginning.The latest technology is being used to attain yields above those historically achieved in works of the Santiago Metro System. So, the EI-OSSA consortium is performing excellent work in line with the predicted quality, deadlines and costs.

2928

ANtoFAGAStA proJeCt, ANtoFAGAStA - CHIleThis project, being built in a partnership with Boetsch S.A. and Villamar, is located at the corner of Balmaceda Avenue and Maipu Street, in the very center of downtown Antofagasta. It was designed by Sabbagh and A4, and consists of three modern towers that will be put to different uses: The Maipu Apartment Tower, measuring 14,000 m2.The Balmaceda Tower, measuring nearly 20,000 m2, that will be home toan aparthotel and offices.The Singular Tower, for offices and an event center, measuring 4,000 m2.The project also plans for a business square comprised of an undergroundlevel, a first floor and a second floor, measuring 8,000 m2.

NAtIVo MACUl proJeCt, SANtIAGo - CHIleThis project is on Macul Avenue, a long-standing residential and family sector in the Macul municipality. The project consists of two towers, one of 19 floors and the other of 16 floors, that will house a total of 368 apartments.The finishes in each apartment will be superior standard, such as PVC windows, floating floors, American carpeting, washable wall paper and ornamental glass in kitchens. LED lighting will be used on all exteriors and in common spaces, resulting in savings on dwellers’shared expenses.

3130

AIreS Del llANo proJeCt, SANtIAGo - CHIleThis is a two-tower project, one of 17 floors and the other of 18 floors, hou-sing a total of 262 apartments.These buildings are located at Brigadier de la Cruz 980 in the Municipality of San Miguel, just a short walk from Gran Avenida. These towers are an ex-cellent housing alternative in the sector because of their proximity to the San Miguel Subway Station and to shopping centers, supermarkets, service areas, hospitals, schools, universities, and the like. The project stands out for the superior standard above the average for the zone. Windows are made of PVC and thermo panel glass is used in bedrooms. Kitchens have a safety control system and an electrical oven with a grill, gra-nite counters and washable wall paper.The project is energy-efficient. Installations include photovoltaic panels, dual flush toilets and faucet aerators.

SAN JoSe De lA SIerrA proJeCt, SANtIAGo- CHIleThis development is located at 13500 Las Condes Avenue, across from Mall Sport in Lo Barnechea.There will be two towers, each with 163 apartments. These buildings have been designed to be energy efficient through solar panels and thermo panel glass in all windows. The architecture is modern, connectivity is excellent and the finishes will be high standard.

3332

StAGe II IMproVeMeNt oF CoStANerANorte, SANtIAGo - CHIleLocated in the midst of the eastern sector of Santiago, the project consists of improving the sector’s connectivity. Of note is the enlargement of the Pérez Zujovic Traffic Circle and the redesign, including new bridges and tunnels, of the actual connections between the Costanera Norte Toll Road and the most important avenues and highways in this sector, such as the future Costanera Sur, Kennedy Avenue, President Riesco Avenue, Vitacura Avenue and the San Cristobal Tunnel, among others. A very significant number of pre-excavated piles must be built both for the foundations of some viaducts crossing the Mapocho River and for the shoring of most of the trenches that will be the future entrances and exits from the tunnel being built below Kennedy Avenue. The scope of the project required considerable resources that Pilotes Terratest was able to provide given the great fleet of machinery it currently has in the country. As many as three main drills (BAUER BG28 or better) and three ancillary machines have had to be used in some stages of the project. Although the majority of the piles have been built using BAUER rotary drills in diameters of 880 mm, 1000 mm and 1500 mm, there were specific cases when piles with a diameter of 2000 mm had to be built. The spoon/drill method was used with Leffer equipment, ideal for the soil conditions in the sector.

3534

treNG treNG AND KAY KAY SUSpeNSIoN BrIDGe IN teMUCo, - CHIleThis project forms part of the “Improvement of the Temuco-Padre Las Casas Road Interconnection.” The bridge will be 240 meters long by 25 meters wide and have four lanes, bicycle paths, sidewalks and lookouts. The mast will be 65 meters high. The foundations are comprised of 60 piles 26.5 meters deep with a diameter of 1800 mm. The remaining abutments of the bridge were grounded on piles with a diameter of 1200 mm. All piles were drilled using mud.This is the first project built in Chile using 1800-mm-diameter piles. Several special tools had to be acquired for this project. It was built in the second semester of 2014 over a period of 13 weeks.

rAKI WIND FArM, reGIoN oF tHe BIo BIo, CHIleThis project, located in the Region of Bio Bio, entailed building and operating a farm comprised of 5 wind towers to produce 15 MW.The foundations of these towers were designed as stone columns 80 cms in diameter at the depths varying from 9 to 13 meters. Drilling was first required in all positions given the characteristics of the soil.This project was built in the second half of 2014 over a period of 10 weeks, in compliance with the objectives of the contract and of the client.

3736

SANtIAGo Metro – CoNStrUCtIoN oF NeW lINeS 3 AND 6 - CHIle.Like in previous years, Pilotes Terratest has been a very active partici-pant in the future Lines 3 and 6 of the Santiago Metro System. Several technologies were used in the work, depending on what was needed for each station, shaft or tunnel. Below is a summary of the main activities performed thus far to date, broken down by segment:SEGMENTS 1 AND 2 OF LINE 3 (Client: OHL)- An umbrella of self-piercing screws in all shafts and stations.- Post tensioned anchors at the Los Libertadores Station.SEGMENTS 5 AND 6 OF LINE 3 (Client: OHL)- An umbrella of heavy-duty tubes and selfpiercing screws in all shafts

and stations.- Shoring using piles anchored in the Irarrázaval and Plaza Egaña Shafts.SEGMENTS 1 AND 2 OF LINE 6 (Client: Metro 6)- Shoring using anchored piles and soil nailing at the Franklin and Ñuble

Stations.

- An umbrella of heavy-duty tubes at the Bio Bio and Ñuble Stations and in the San Ignacio Tunnel.- An umbrella of self-piercing screws in several shafts and stations.SEGMENTS 3 AND 4 OF LINE 6 (Client: EIOSSA)- Shoring using anchored piles and soil nailing in the National Stadium, Ñuñoa and North and South Los Leones Stations.

REPAIR SHOPS AND CAR GARAGES FOR LINE 6 (Client: OHL)- Foundation piles.

Pilotes Terratest’s cooperation with each of the subway contractors is one of the fundamental aspects. In many cases, the projects have been modified, complemented or optimized by the engineering of our Technical Office.

CáMArA CHIleNA De lA CoNStrUCCIóN BUIlDING, SANtIAGo - CHIlePost-tensioned slabs for a building with an area of 50,295 m2, located in the municipality of Las Condes. It will have 9 underground levels and 23 floors. All of the floor slabs in this project are post-tensioned. Nahmias is the construction company in charge of construction.

3938

ClÍNICA DáVIlA (prIVAte HoSpItAl), SANtIAGo - CHIle41,249 m2 of post-tensioned floor slabs in 6 underground levels and 7 aboveground levels. Posttensioned beams will also be used on the first level. This building is located in the Municipality of Recoleta, beside the actual Clinica Dávila (Private hospital).

ClÍNICA VeSpUCIo (prIVAte HoSpItAl), SANtIAGo - CHIle41,879 m2 of post-tensioned floor slabs distributed in 5 underground levels and 12 aboveground levels in the Municipality of La Florida, beside the actual Clinica Vespucio (Private Hospital) and Mall Plaza Vespucio a shopping center.

4140

INCoMe

This shows individual income of each subsidiary from 2001 to 2008 according to GAAP.

2009 to 2014 shows the consolidated income of Echeverría Izquierdo according to IFRS.

(Billions of Chilean pesos)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGR 01-14 17,07%

2013

2834

4759

8778

87

102

124131

145

159

233

3. eXeCUtIVe SUMMArY

Civil works and electromechanical erection of the Thickening and Tailings Area of the Ministro Hales Mine of Codelco in Calama, Chile.

217

2014

4342

IndustrialErection

Engineeringand Construction

DIStrIBUtIoN oF INCoMe IN 2014 (*)

Real Estate

DeepFoundations

Source: Echeverría Izquierdo

BACKloG (*)

95

66

146

108

152 148

175

2007 2008 2009 2010 2011 20122006

(*) Includes all consolidated subsidiaries and the proportional share of unconsolidated associates.

reAl eStAte DeeDS

644

295

630

973

288

511

$27.648

$15.416

$32.739

$42.659

$20.037

2007 2008 2009 2010 2011 20122006

Total units deeded

Income from aggregate sales (MCH$)

All units deeded per project with no adjustment for the share of Echeverría Izquierdo.

(Billions of Chilean pesos)

CAGR 01-14: 7,47%

332

proFIt(Billions of Chilean pesos)

176

2013

$37.482

2013

583$13.300

3,4%

4,6%

3,4%

7,0%

6,9%

3,5

5,95,2

10,5

12,1

9,0

2007 2008 2009 2010 2011 2012

4,2%

2013

-2,3

-1,0%

Energy

Offices

Civil Works

INDUSTRIAL ERECTION

$34.453

367

2014

15%

9%

43%

11%22%

Mining

Maintenance

Pulp

Industrial

$13.253

55%

30,1%

10%

4,9%

ENGINEERING AND CONSTRUCTION

37%

30%

16%

Housing

Education

Commercial

10%

Health

4% 3%

3,2

1,5%

2014

169

2014

Net Margin (%)

Profit

(*) 100% of the subsidiaries that are consolidated and the proportion for associates that are not.

4544

AreA of Business Business segment speciAlizAtion

engineering Andconstruction

INDUSTRIAL ERECTION

Energy

Pulp

Mining

Industrial

Engineering

EPC Projects

Industrial Maintenance

CONSTRUCTION ANDCIVIL WORkS

Commercial

Housing

Health Care

Education

Deep Foundations

Post-tensioning

Concessions

Public Works and Roads

Underground Works

Maritime Works

reAl estAte REAL ESTATEHousing

Commercial

CONSOLIDATED

UNDER DEVELOPMENT

tABle oN FIelDS oF SpeCIAlIZAtIoN AND INterNAtIoNAl preSeNCe

Collaborators building the storage silo. Civil works and electromechanical erection of the enlargement of the Pellet Plant in Huasco, Chile.

4746

Launching and post-tensioning of the Amolanas Bridge Slab, Coquimbo, Chile

Our initial projects were awarded.

High-rise projects were developed and the reinforced concrete technique began to be used.

Professionals were hired and largescale projects were developed.

Francisco Silva left the company and Bernardo Echeverría became a partner.

VSL Sistemas Especiales de Construcción (Special Construction Systems) was created to enter the postten-sioning market.

Pilotes S.A. was created to enter the special foundations market.

Echeverria Izquierdo was formed by Fernando Echeverría, Alvaro Izquierdo and Francisco Silva.

1978

1980 /1986

1981

1987

1988

1979

1989

4. looKINGBACKWArDS

4948

Echeverría Izquierdo MontajesIndustriales (industrial erection) and Pilotes Terratest (piles) were founded.

Echeverría Izquierdo Ingeniería y Construcción (engineering and construction) and Echeverría Izquierdo Inmobiliaria e Inversiones (property development andinvestment) were created.

1996

1998

Larger works were built, such as shopping centers, office buildings, housing complexes and service buildings in downtown Santiago and El Golf sector.

1990 /1995

The real estate business was consolidated by projects in the Metropolitan, Fifth and Eighth Regions.

VSL Argentina was created, beginning the group’s internationalization.

The industrial erection subsidiary grew as a result of energy, mining, pulp and petrochemical projects.

Echeverría Izquierdo S.A. and Pilotes Terratest Peru S.A. were created.

1998 /2000

2001

2004

2007

Echeverría Izquierdo Montajes Industriales acquired a 29% interest in Parés y Alvarez, an engineering company.

The Concessions Area was set up to build commercial infrastructure, public works, underground parking and other projects.

2008

Equipos y Terratest was created in Colombia.

Echeverría Izquierdo S.A. acquired 100% of Echeverría Izquierdo Montajes Industriales, which made Dario Barros Ramírez a partner in the group.

Echeverría Izquierdo Peru was established.

2011

2012

Echeverría Izquierdo Montajes Industriales Peru was incorporated, thereby giving all business units an international presence.

Echeverría Izquierdo acquired 100% of Pilotes Terratest S.A. Chile and Pilotes Terratest S.A.C. Peru.

Echeverría Izquierdo Montajes Industriales acquired a 51% interest in Nexxo S.A.

2013

Echeverría Izquierdo Soluciones Industriales (industrial solutions) was created.

Echeverría Izquierdo S.A.’s initial public offering was a success on the stock exchange and it received an influx of US$87 million for a 25% stake.

Echeverría Izquierdo Montajes Industriales built its first projects in Peru and Brazil.

VSL built its first project in Peru.

Echeverría Izquierdo Soluciones Industriales strengthened its organization and finance structures.

The EI-OSSA Consortium was made to build the new lines of the Santiago Metro system.

2013Dario Barros became a partner.

2014

The Civil Works area grew. New segments of the Subway System were awarded and the company sought to expand its experience to new areas such as energy and infrastructure.

The presence of the industrial erection business in Brazil was consolidated through a major contract at the CMPC Pulp Plant in Guaíba.

2014

5150

MISSIoNCreate value for shareholders through services of excellence in engineering and construction, providing integral and innovative solutions that add value to our customer’s projects and make us their best partner.

VAlUeSOur comportment is grounded on the ongoing search for excellence in service, on the quality of our processes, on respect for our customers, suppliers and collaborators, and on creatively satisfying the needs of those who entrust their

projects to us.

VISIoNOur vision is to make the Echeverría Izquierdo Group one of the top three in the local industry based on its diversification, the soundness of its different businesses, and the expansion of its operations to the leading markets in Latin America to consolidate it as an international enterprise.

5. ABoUt US

The viaduct for Line 4 of the The viaduct for Line 4 of the Santiago Subway System in Santiago, Chile.

The liquefied gas receiving and storage terminal for Oxiquim. Liquefied gas receiving

line from the tankers to the 50,000 m3 storage tank. Quintero, Fifth Region of Chile.

5352

CoMpANYFACtS

shareholders department: Depósito Central de Valores

Address: Huérfanos 770, 22nd floor, Santiago

phone: +56 2 2393 9003

e-mail: [email protected]

Web site: www.dcv.cl

Address: Rosario Norte 532, 8th floor, Las Condes, Santiago.

phone: +56 2 2631 4600


external Auditors: Deloitte

leGAl INForMAtIoN

Echeverría Izquierdo S.A. is a stock corporation that was incorporated after the division of Echeverría Izquierdo Ingeniería y Construcción S.A. by public deed dated November 16, 2007, executed in the Santiago Notarial Office of Raúl Undurraga Laso. An abstract of that deed was registered on page 51,455, #36,424, of the 2007 Santiago Commercial Registry and was published in the Official Gazette on December 4, 2007.

BUSINeSS

Securities investments in Chile and abroad, in particular in stocks, bonds, debentures, credits, interests, commercial paper, shares in the latter; the purchase, sale or keeping of such investments, acquisition of an interest or share as a partner in enterprises or companies of any nature. It may also create, finance, promise to create or finance and administrate any type of business, enterprise or company for its own account or for third parties and receive and invest the returns on investments and engage in other activities that are related or conducive to the aforesaid.

1 For the Santiago Stock Exchange, Valparaíso Stock Exchange and Electronic Exchange of Chile.

legal name: Echeverría Izquierdo S.A.

taxpayer identification number: 76.005.049-0

Address: Rosario Norte 532, 8th floor, Las Condes, Santiago.

phone: +56 2 2631 4600


Web site: www.ei.cl

stock exchange ticker symbol1: EISA

securities and insurance commission registration number: 1095

SeCUrItIeS reGIStrAtIoN

INVeStor relAtIoNS

FrANCISCo GUtIerreZ pHIlIppIDirectorCivil Engineer, Catholic Univ. of ChileMBA from IESE at University of

Navarra (1988)

Secondary and tertiary crushing line of Minera Centinela for Metso Minerals, Sierra Gorda, Region of Antofagasta, Chile.

5554

MANAGeMeNt ANDoWNerSHIp StrUCtUre

BoArD oF DIreCtorS

The Board of Directors has seven members who may be re-elected and who hold office for a period of three years. The Board must be elected in its entirety at the end of that period. Should a vacancy occur in a directorship, the entire Board of Directors must be elected at the next Regular Shareholders Meeting to be held by the Company. The Board may appoint a replacement in the interim.

FerNANDo eCHeVerrÍA VIAlChairman of the BoardCivil Engineer, Catholic Univ. of Chile

There are no alternate members to the regular board members.

álVAro IZQUIerDo WACHHoltZDirectorCivil Engineer, Catholic Univ. of Chile

BerNArDo eCHeVerrÍA VIAlDirectorArchitect, Univ. of Chile

DArÍo BArroS rAMÍreZDirectorCivil Engineer, Catholic Univ. of Chile

pABlo IHNeN De lA FUeNteDirectorCivil Engineer, Catholic Univ. of ChileM.A., Economics University

of Chicago (1983)

MArCelo AWAD AWADIndependient DirectorCivil Industrial EngineerState Technical University

5756

áNGel MArtÍNeZChief Executive Office Pilotes Terratest Perú S.A.C.

Civil Engineer, Ricardo Palma

University in Peru

MBA, ESAN University of Perú (2009)

GereNteS

JUAN ANtoNIo GArCÍA GoNZáleZChief Executive OfficerEquipos y Terratest S.A.

Road, Canal and Port Engineer,

Polytechnic University of Madrid

MBA, Business Institute, Madrid

(1999)

CrIStIáN SAItUA DoreNChief Executive Officer Echeverría Izquierdo S.A.

Business Engineer

Catholic University of Chile

AlDo GUZMáN GUIlIANIRegional Chief Executive OfficerPilotes Terratest S.A.

Civil Engineer University of Buenos

Aires Master of Geotechnics and

Infrastructure, University of Hannover,

Germany (1993)

rAIMUNDo CrUZAt CorreAChief Executive OfficerEcheverría Izquierdo Inmobiliaria e Inv. S.A.

Civil Industrial Engineer Catholic

University of Chile

Master of Science in Urban Studies and

Planning, MIT (2013)

CHrIStIAN JANDer CAMelIo Chief Executive Officer Nexxo S.A.

Civil Industrial and Chemical

Engineer Federico Santa María

Technical University of Chile

JAVIer álVAreZ péreZChief Executive OfficerParés y Álvarez

Civil Engineer University of Concepcion

pABlo IVelIC ZUlUetAChief Executive Officer Echeverría Izquierdo Edificaciones S.A.

Echeverría Izquierdo Ingeniería y Construcción S.A.

Civil Engineer Catholic University

of Chile

JAN HUSSChief Executive Officer Echeverría Izquierdo Montajes Industriales S.A.

Mechanical Engineer

Technical University of Berlin (TFH)

Postgraduate Certificate in

Business Administration

Technical University of Berlin (TFH)

(1996)

lUIS AlBerto GArrIDo lABBeChief Executive OfficerEcheverría Izquierdo Soluciones Industriales S.A.

Civil Engineer, Catholic University

of Chile

FerNANDo pINo HUrtADoChief Executive OfficerVSL Sistemas Especiales de Construcción S.A.

Civil Engineer, Catholic University of

Chile

MBA, Catholic University of

Chile(2003)

tIto FUeNteS VerGArAChief Executive Officerl Echeverría Izquierdo Perú S.A.C.

Civil Engineer Catholic University

of Chile

AlDo loGUerCIo Chief Executive Officer VSL Sist. Especiales de Cons-trucción Argentina S.A.

Civil Engineer University of

Buenos Aires

JUAN SCHoeNNeNBeCK GroHNertChief Executive OfficerPilotes Terratest S.A.

Civil Construction, Catholic University

of Chile Master in Geotechnics

from Cedex in Madrid

VÍCtor ACoStA MoSCoSoChief Executive OfficerEcheverría IzquierdoInmobiliaria Perú S.A.C.


of Peru

MBA, ESAN University of University

of Peru

eNNIo CAprIle VeNDrell Chief Executive Officer Echeverría Izquierdo Inge-niería y Construcción S.A.


of Chile

5958

Echeverría IzquierdoInmobiliaria e Inversiones

Echeverría IzquierdoMontajes Industriales

Echeverría IzquierdoIngeniería y Construcción

Echeverría IzquierdoEdificaciones

Pilotes Terratest VSL Sistemas Especiales de Construcción

VSL Sistemas Especiales de Construcción Argentina

raimundo cruzatChief Executive Officer

Andrea gomienChief Administrative and Finance Officer

francisco zepedaChief Commercial Officer

José sariegoChief Project Officer

gonzalo lópezChief Project Officer

Victor AcostaChief Executive OfficerEcheverria Izquierdo Inmobiliaria Perú

Juan HausChief Executive Officer

raimundo riveraChief Commercial Officer

dario Barros i.Chief Business Officer

cristián VergaraManager, Civil Works Division

fernando guitartManager, Erection Division

sergio de BonadonaChief Technical Officer

nelsón AzócarChief Administrative and Finance Officer

luis Alberto garridoChief Executive OfficerEcheverría Izquierdo Soluciones Industriales S.A.

Javier ÁlvarezChief Executive Officer of Parés & Alvarez

christian JanderChief Executive Officer of Nexxo S.A.

Antonio sepúlvedaDirector of OperationsMiplan-EIMISA Consortium

pablo ivelicChief Executive Officer

fernando castilloChief Administrative and Finan-ce Officer

Jose luis perezChief Human Resources Officer

Janet cañasChief Procurement Officer

ennio caprileChief Civil Works Officer

pablo ivelicChief Executive Officer

fernando castilloChief Administrative and Finance Officer

Jose luis perezChief Human Resources Officer

Janet cañasChief Procurement Officer

ricardo YorstonChief Technical Officer

francisca cruzChief Business Officer

nelson carrascoChief Research Officer

tito fuentesChief Executive OfficerEcheverría Izquierdo Peru S.A.C.

Aldo guzmánRegional Chief Executive Officer

Alvaro BartesaghiRegional Deputy Executive Officer

Juan schoennenbeckChief Executive Officer Chile

pablo HermosillaChief Commercial Officer

Jorge díazChief Administrative and Finance Officer

Angel gutierrezChief PGD Production Officer

Alberto mukdenChief PQD Production and Special Works Officer

Angel martínezChief Executive OfficerPilotes Terratest Peru

Juan Antonio garciaChief Executive OfficerEquipos y Terratest Colombia

fernando pinoChief Executive Officer

milton melerChief Commercial Officer for Special Projects and Civil Works

Alejandro irisarriChief Commercial Officer for Construction and VSol

celso VillaChief Operating Officer

Antonio gonzálezChief Technical Officer

carolina figueroaChief Administrative and Finance Officer

manuel freyreChief Executive Officer of VSL Peru

Aldo loguercioChief Executive Officer

ADMINIStrACIóN

reAl eStAte eNGINeerING AND CoNStrUCtIoN

cHief executiVe officerCristián Saitua

BoArd of directorsFernando Echeverría V. / Álvaro Izquierdo W. / Bernardo Echeverría V.Darío Barros R. / Pablo Inhnen de la F. / Francisco Gutierrez P. / Marcelo Awad A.

6160

BoArD CoMpeNSAtIoN

According to Companies Law 18,046, each year the Regular Shareholders Meeting of the Company must set the Board compensation. At the Regular Meeting held April 29, 2014, the shareholders resolved that the Board would receive an allowance of 100 Unidades de Fomento monthly for attending board meetings until the Regular Shareholders Meeting in 2015. This will be the only compensation for attending Board Meetings.

BoArD AND MANAGeMeNt CoMpeNSAtIoN

BoArD MeMBerS IN 2013

TAxPAyER ID NAME OCCUPATION TITLEDATE OF APPOINTMENT

6.065.433-6 Fernando José Echeverría Vial Civil Engineer, Catholic University of ChileChairman of the Board

30-Apr-13

6.686.307-7 Álvaro Izquierdo Wachholtz Civil Engineer, Catholic University of Chile Director 30-Apr-13

6.638.550-7 Bernardo Alberto Echeverría Vial Architect, Director 30-Apr-13

4.599.313-2 Darío Arturo Barros Ramírez University of Chile Director 30-Apr-13

6.866.516-7 Pablo Ihnen de la Fuente Civil Engineer, Catholic University of Chile Director 30-Apr-13

6.374.984-2 Marcelo Awad Awad Civil Engineer, Catholic University of Chile Director 30-Apr-13

7.031.728-1 Francisco Ramón Gutiérrez Philippi Civil Industrial Engineer, State Technical University Director 30-Apr-13

CoMpeNSAtIoN oF tHe MANAGeMeNtteAM AND SeNIor eXeCUtIVeS

The management team and senior executives of Echeverría Izquierdo earned compensation totaling KCH$3,470,529 in the fiscal year ending December 31, 2014 (KCH$2,842,012 in fixed compensation and KCH$628,517 in variable compensation). That compensation totaled KCH$2,984,992 in 2013 (KCH$2,371,067 in fixed compensation and KCH$613,925 in variable compensation).

BoArD CoNSUltANtS’ FeeS IN 2014

ADVISOR TyPE OF SERVICE TOTAL DISBURSEMENT

Enrique Besa Correa Assistance in analyzing board operation 133.33 UF

INCeNtIVe plAN

Echeverría Izquierdo and its subsidiaries have implanted economic incentive schemes for all executives and professionals. These incentives consist of a percentage of the profits each year and depend on the contribution of each area to the company’s re-sults. Certain management indicators and the attainment of individually defined goals are taken into account in the calculation.

At the Special Shareholders Meeting held December 20, 2012, the purchase of 1% of the share capital of the company was approved for allocation to an incentive plan for the company’s executives. Certain executives were offered 3,388,000 shares on May 23, 2014.

The plan consists of a stock option agreement signed May 29, 2014, 20% strikeable in 2015, 30% in 2016 and 50% in 2017.

756,905 other shares were acquired as at December 31, 2014 that have been reser-ved for future allocation to executives.

INForMAtIoN oN oUr SeNIor oFFICerS

TAxPAyER ID NAME OCCUPATION TITLE MAIN ExECUTIVE POSITIONAPPOINTMENT DATE

11.833.589-9 Cristián Saitua DorenBusiness Engineer,Catholic University of Chile

Chief Executive Officer

Chief Executive Officer ofEcheverría Izquierdo S.A.

20-Dec-2007

22.288.719-4 Jan HussMechanical Engineer,Technical University (TFH) of Berlin

Senior OfficerChief Executive Officer of Echeverría Izquierdo Montajes Industriales S.A.

2-Jan-2012

14.632.337-5 Aldo Guzmán GiulaniCivil Engineer,University of Buenos Aires

Senior OfficerChief Executive Officer of Pilotes Terratest S.A.

3-Feb-1998

10.689.120-6 Pablo Ivelic ZuluetaCivil Engineer,Catholic University of Chile

Senior OfficerChief Executive Officer of Echeverría Izquierdo Ingeniería y Construcción S.A.

15-May-2013

13.657.810-3 Raimundo Cruzat CorreaCivil Industrial Engineer,Catholic University of Chile

Senior OfficerGerente General Echeverría Izquierdo Inmobiliaria e Inversiones S.A.

1-Aug-2013

10.476.201-8 Fernando Pino HurtadoCivil Engineer, Catholic University of Chile

Senior OfficerChief Executive Officer of Echeverría Izquierdo Inmobiliaria e Inversiones S.A.

1-Jul-2005

BoArD MeMBerS IN 2014

TAxPAyER ID NAME OCCUPATION TITLEDATE OF APPOINTMENT

6.065.433-6 Fernando José Echeverría Vial Civil Engineer, Catholic University of ChileChairman of the Board

30-Apr-13

6.686.307-7 Alvaro Izquierdo Wachholtz Civil Engineer, Catholic University of Chile Director 30-Apr-13

6.638.550-7 Bernardo Alberto Echeverría Vial Architect, University of Chile Director 30-Apr-13

4.599.313-2 Dario Arturo Barros Ramírez Civil Engineer, Catholic University of Chile Director 30-Apr-13

6.866.516-7 Pablo Ihnen de la Fuente Civil Engineer, Catholic University of Chile Director 30-Apr-13

6.374.984-2 Marcelo Awad Awad Civil Industrial Engineer, State Technical University Director 30-Apr-13

7.031.728-1 Francisco Ramón Gutiérrez Philippi Civil Engineer, Catholic University of Chile Director 30-Apr-13

6362

BACKGroUND

In compliance with article 50-bis of the Companies Law, amended by Law 20,382 that was published in the Official Gazette on October 20, 2009, the re-port below discusses the activities of the Company’s Directors Committee, its work and the expenses incurred in the 2014 fiscal year.

eStABlISHMeNt oF tHe CoMMIttee AND MeMBerS

The members of the actual board of directors were elected at the Regular Sha-reholders Meeting of the Company held April 30, 2013. Those directors were elected for a period of 3 years and at that time, Mr. Marcelo Awad Awad was appointed independent director of the company. In accordance with the afo-resaid article 50-bis of the Companies Law and Circular 1956 of the Securities and Insurance Commission, the members of the Directors Committee in the 2014 fiscal year were Francisco Gutierrez Philippi, Pablo Ihnen de la Fuente and Marcelo Awad Awad, this latter as independent director who has been chairman of the Committee since December 3, 2013.

GeNerAl ASpeCtS oF tHe CoMMIttee’S WorK IN tHe 2014 FISCAl YeAr

The Directors Committee met six times in 2014 and once in March 2015. At those meetings, it generally engaged in the duties assigned by law, which are:

• Review the balance sheet, financial statements and opinions provided by the external auditors and external regulatory entities;

• Propose candidates to the Board for the external auditing of the company;

• Examine the information on the Company’s transactions with related parties;

• Review the compensation and salary plans for managers and executives;

• Analyze whether or not an external auditing firm should be retained to provide services apart from the external audit.

Finally, all members were present at each meeting as well as the Chief Executive Officer and Comptroller of the company, the latter two as special guests. The Comptroller performed the duties of secretary. Each of those meetings was set down in minutes that were signed in due course by the Committee members.

ANAlYSIS oF NoN-reCUrreNt MAtterS BY tHe CoMMIttee

The audit plan proposed for 2014 was reviewed at the meeting held April 21, 2014. Several proposals were analyzed in relation to improving the financial reporting system and a report was made on the progress in diverse corporate governance initiatives of the company.

The financial statements of the Company as of March 31, 2014 were reviewed at the meeting held May 16, 2014.

At the meeting held July 30, 2014, progress was reported in implementing the Crime Prevention Model according to Law 20,393. The progress in diverse internal control initiatives was discussed and information was provided on the progress in implementing the corporate channel for reporting irregularities.

At the meeting held August 18, 2014, the company’s financial statements were reviewed as at June 30, 2014. This review was completed during the special committee meeting held August 28, 2014.

The company’s Financial Statements as at September 30, 2014 were reviewed at the meeting held November 17, 2014.

The purpose of the meeting held December 15, 2014 was to interview the external financial auditor and discuss different aspects of his work on the company’s financial statements and the main observations on internal controls contained in the report to management issued by the external auditing firm.

Finally, at the meeting held March 16, 2015, the salary and compensation plans for the officers and senior executives of the company were reviewed.

ANNUAl MANAGeMeNt reporteISA DIreCtorS CoMIttee

NAME TITLEALLOWANCE (kCH$) COMPENSATION (kCH$) OTHER (kCH$) TOTAL (kCH$)

12/31/14 12/31/13 12/31/14 12/31/13 12/31/14 12/31/13 12/31/14 12/31/13

Fernando Echeverría Vial (*) Chairman 50,422 - 86,436 129,504 - - 136,858 129,504

Álvaro Izquierdo Wachholtz (*) Director 50,422 - 86,436 130,802 - - 136,858 130,802

Darío Barros Ramírez (*) Director 43,219 - 93,639 113,668 - - 136,858 113,668

Bernardo Echeverría Vial (*) Director 50,422 - 86,436 125,050 - - 136,858 125,050

Pablo Ihnen de la Fuente (**) Director 35,668 25,162 - - 10,083 6,548 45,751 31,710

Ricardo Levy Guarda (***) Director 14,382 8,714 - - - - 14,382 8,714

Marcelo Awad Awad Director 28,845 18,465 - - 10,099 6,462 38,944 24,927

Francisco Gutiérrez Philppi Director 28,813 18,455 - - 10,084 6,459 38,897 24,914

totAles 302,193 70,796 352,947 499,024 30,266 19,469 685,406 589,289

(*) Includes Echeverría Izquierdo S.A. and Subsidiaries

(**) Includes Echeverría Izquierdo S.A. and the construction subsidiary

(***) Includes the real estate and industrial erection subsidiaries

6564

The information on the company’s transactions with related parties was also analyzed and the audit service proposals from the different auditing firms for 2015 were reviewed. It was agreed that a recommendation would be made to the Board of Directors to appoint Deloitte as external auditors. The Board must then make that recommendation to the Regular General Shareholders Meeting. The Financial Statements of the Company as at December 31, 2014 were also reviewed and the text of this annual report was approved.

CoMMIttee CoMpeNSAtIoN AND eXpeNSeS

Committee members receive a fee of 35 UF monthly, separate from the compensation for their directorships, in accordance with the Companies Law. That fee was approved at the Regular Shareholders Meeting held in 2014.

Finally, the Director’s Committee did not incur any extraordinary expenditures in the 2014 fiscal year.

reCoMMeNDAtIoNS to SHAreHolDerS

The Directors Committee issued a statement that it had no recommendations to make to the Company’s shareholders.

FrANCISCo GUtIérreZ pHIlIppIDirector

pABlo IHNeN De lA FUeNteDirector

MArCelo AWAD AWADChairman

The El Golf 2001 Office Building at Avda. Apoquindo 3650, Las Condes, Santiago, Chile. Built from 2002 to 2003.

6766

NAME OF SHAREHOLDER TAxPAyER I.D.NO. OF SHARES AT

12/31/2014% INTEREST AT

12/31/2014

Inm. e Inv. Pergue Ltda. 78292700-0 156,457,257 25,85%

Inmobiliaria e Inversiones Vegas Negras Dos Ltda. 76166441-7 96,755,300 15,98%

Inmobiliaria e Inversiones Vegas Negras Ltda. 78292690-K 86,602,826 14,31%

Moneda S.A. AFI para Pionero Fondo de Inversión 96684990-8 60,151,000 9,94%

Inmobiliaria e Inversiones Pergue Dos Ltda. 76166469-7 52,890,200 8,74%

Inversiones SH Seis Ltda. 76273760-4 35,714,285 5,90%

Inversiones Baiz Ltda. 76044530-4 27,352,100 4,52%

Fondo de Inversión Larrain Vial Beagle 96955500-k 17,178,269 2,84%

Inmobiliaria e Inversiones Abanico Ltda. 78292710-8 13,620,700 2,25%

Inversiones Confluencia Ltda. 76163198-5 13,620,700 2,25%

Inversiones Baiz Dos Ltda. 76166434-4 11,996,652 1,98%

IM Trust S.A. C de B 96489000-5 9,214,395 1,52%

Others 23,811,116 3,93%

The Company has issued 605.364.800 shares of a single serie. At December 2014, the shares are subs-cribed, paid and distributed among 38 shareholders (*), where there is no individual or group that has the control. At December 31, 2014, the 12 largest shareholders of Echeverria Izquierdo S.A are:

(*) I2,944,294 shares were included for 2014 for IM Trust S.A.

Corredores de Bolsa that were acquired by Echeverría Izquierdo S.A.

under approval of the Shareholders Meeting held December 20, 2012.

nº of sHAreHolders 38 totAl no. of sHAres 605.364.800

AT DECEMBER 2014

1,98%Inversiones Baiz Dos Ltda.

1,52%IM Trust S.A. C de B

3,93%Others

1.

2.

3.

4.

5.

11.

12.

13.

propertY AND CoNtrol

25,85%Inmobiliaria e InversionesPergue Ltda.

15,98%Inmobiliaria e InversionesVegas Negras Dos Ltda.

14,31%Inmobiliaria e InversionesVegas Negras Ltda.

9,94%Moneda S.A AFI para Pione-ro Fondo de Inversión

8,74%Inmobiliaria e InversionesPergue Dos Ltda.

5,90%Inversiones SH Seis Ltda.

4,52%Inversiones Baiz Ltda.

2,84%Fondo de Inversión Larraín Vial Beagle

2,25%Inmobiliaria e InversionesAbanico Ltda.

2,25%InversionesConfluencia Ltda.

6.

7.

8.

9.

10.

1

2

3

4

5

6

7

8

910

11 12 13

6968

The company’s shares are traded on the Santiago Stock Exchange, Valparaiso Stock Exchange and the Electronic Exchange of Chile.

QUArterlY StAtIStICS oN tHe SHAreS IN eCHeVerrÍA IZQUIerDo S.A.

NUMBER OF

SHARESAMOUNT TRADE

(CH$)AVERAGE PRICE (CH$/SHARE)

ExCHANGE PRESENCE AT THE CLOSE OF EACH

qUARTER

2013 14,724,226 4,816,945,147 327.1

1er Quarter 6,737,213 2,295,226,976 340.7 35.00%

2do Quarter 3,849,836 1,244,500,510 323.3 30.00%

3er Quarter 2,434,283 762,885,554 313.4 17.22%

4to Quarter 1,702,894 514,332,107 302.0 11.67%

2014 5,419,661 1,475,574,847 272.3

1er Quarter 2,575,935 728,389,402 282.8 4.44%

2do Quarter 912,667 246,799,247 270.4 2.22%

3ER QUARTER 325,449 85,337,347 262.2 1.11%

4TO QUARTER 1,605,610 415,048,851 258.5 1.67%

The shares in Echeverría Izquierdo S.A. had an adjusted presence of 11.67% at the close of 2013. In 2013, they represented 20.26% of the Construction and Real State sector index and also formed a part of the Small General Stock Price Index (IGPA), on which it held an adjusted presence of 26.67% at the close of 2012.

CoMpArAtIVe BeHAVIor oF tHe SHAre 2012 - 2014

eisA ipsA

Source: Santiago Stock Exchange

30%

20%

10%

0%

-10%

8/1/12 12/3/12 4/1/13 8/1/13 12/2/13 4/1/14 8/1/14 12/1/14

-20%

SART Plant for Compañía Minera Maricunga in Copiapo, Chile.

7170

nAmerelAtion-

sHiptrAnsAction

dAte

dAte of notice of tHe trAnsAction to

compAnY

tYpe of trAnsAction

numBer of sHAres

trAded

unit price

trAnsAction totAl

Inversiones Baiz Dos Ltda. EPDI (*) 41589 41589 Sale 19.422 305 5.923.710























trADING oF tHe CoMpANY’S SHAreS BY relAteD perSoNS IN 2013

(*) EPDI is the Spanish acronym for an entity controlled directly or through other individuals that are

relatives out to a second degree of blood kinship with a director.
























nAmerelAtion-

sHiptrAnsAction

dAte


compAnY

tYpe of trAnsAction

numBer of sHAres

trAded

unit price

trAnsAction totAl

7372

nAmerelAtion-

sHiptrAnsAction

dAte


compAnY

tYpe of trAnsAction

numBer of sHAres

trAded

unit price

trAnsAction totAl

Inversiones Confluencia Ltda. EPDI 41785 41785 Sale 3.571 266,12 950.315

Inversiones Confluencia Ltda. EPDI 41761 41761 Sale 5.059 282 1.426.638

Inversiones Confluencia Ltda. EPDI 41757 41757 Sale 7.760 282 2.188.320

Inversiones Confluencia Ltda. EPDI 41754 41754 Sale 5.290 281,99 1.491.727

Inversiones Baiz Dos Ltda. EPDI 41746 41746 Sale 7.968 282 2.246.976











Inversiones Baiz Dos Ltda. EPDI 41646 41646 Sale 10.649 299,9 3.193.635

trADING oF tHe CoMpANY’S SHAreS BY relAteD perSoNS IN 2014

Civil works for shafts, galleries and tunnels in Segment 4 of Line 6, Santiago Metro System, Santiago, Chile

7574

BUSINeSS StrUCtUre AND BUSINeSS UNItS

Echeverría IzquierdoIngeniería y Construcción S.A.

Echeverría IzquierdoInmobiliaria e Inversiones S.A.

Echeverría IzquierdoMontajes Industriales S.A.

99,99%Echeverría Izquierdo Inmobiliaria Perú S.A.C.

33,33% Inmobiliaria Aricota S.A.C.

99,99%99,98% 99,99%

99,99% Echeverría Izquierdo Montajes Industriales Perú S.A.C.

51.00% Nexxo S.A.

50.00%

Echeverría Izquierdo Soluciones Industriales S.A.

50.00% Milplan Eimisa Montagens Industriais S.A.

29,00% Parés & Álvarez S.A.

50% Echeverría Izquierdo Soluciones Industriales 50,00%Consorcio EI OSSA S.A.

33,33%Consorcio Cerro Provincia S.A.

96,67% Echeverría Izquierdo Perú S.A.C.

50,00% Consorcio CyJ Echeverría Izquierdo S.A.C.

Echeverría IzquierdoEdificaciones S.A.

99,99%

VSL Sistemas Especiales de Construcción Argentina S.A.

Pilotes Terratest S.A.

50,00%

99,99% Pilotes Terratest Perú S.A.

98,95% Pilotes Terratest Argentina S.A.

50% Equipos y Terratest Colombia

VSL Chile

50,00%

99,99% VSL Perú S.A.C.

propertY DeVelopMeNt

eNGINeerING AND CoNStrUCtIoN

99,99%

Collaborator working on the enlargement of the Pellet Plant in Huasco, Chile.

7776

6. ACtIVItIeS ANDBUSINeSSeS

Business segment suBsidiArY generAl description fields of speciAlizAtion

Development and sale of homes, offices and shopping centers.

Houses, apartments, offices and shopping centers.

Civil industrial works, erection of heavy structures and of highly complex electromechanical equipment.

- Thermoelectric power plants- Pulp plants- Petrochemical plants- Mining facilities

indi

rect

Maintenance of industrial systems, chemical and mechanical cleaning.

- Chemical cleaning and flushing- Industrial maintenance- Catalysts and decoking- Electrical testing

Integral solutions through EPC projects.

- Energy projects- Mining projects- Petrochemical projects

Asso

ciAt

e

Engineering services: conceptual studies, detailed engineering, plant and project management and supply.

- Oil and by-product refineries- Natural gas plants and networks- Chemical and pulp industry- Metal and non-metal mining

Construction of civil works and special works.

- Civil works- Underground works- Hospitals

Construction of residential and non-residential buildings.

- Residential and office buildings- Shopping centers- Educational infrastructure- Hotels

Construction and installation of special foundations and soil remediation.

- Piles and micro-piles- Screen walls- Anchors in soil and rock- Injections in soil- Stone columns- Foundation engineering- Soil Nailing- Soldier Beams and Lagging

Asso

ciAt

e

Integral engineering and construction solutions.

- Post-tensioned slabs- Earth-retaining structures- Post-tensioned floor rafts- Heavy hoisting

REAL ESTATE

INDUSTRIALERECTION

CONSTRUCTION AND CIVIL WORkS

6.1 AreAS oF BUSINeSS AND FIelDS oF SpeCIAlIZAtIoN

7978

reAl eStAteFounded formally in 1996, Echeverría Izquierdo Inmobiliaria has been growing and becoming a major line of business within the group. First it merely acquired interests in companies, but today this real estate subsidiary has a team of close to 50 people that manages the majority of the projects in which it is directly involved. The real estate Area has improved its margin through its knowledge of how to develop, manage and sell projects, in addition to taking advantage of the vertical integration with the construction subsi-diary.As it has adopted a conservative leveraging policy and rigorously studies the markets, in addition to a strategy for project development in the consolidated zones of the leading cities, Echeverría Izquierdo In-mobiliaria has operated in the property industry with little exposure to economic volatilities, successfully weathering the economic crises faced by the country.Echeverría Izquierdo Inmobiliaria has decided to begin to use its own brand in the projects it is developing and selling that are targeted toward the mid-segment residential market. It thus aims to make best use of the positive attributes of quality, seriousness and prestige afforded by the Echeverría Izquierdo seal.Moreover, the share held by the real estate area in higher income residential segments has been attained through partnerships with third parties, with excellent results.In addition, Echeverría Izquierdo Inmobiliaria also takes on office and commerce projects in the main mar-kets of the country.In recent years, the company has extended its operations to Lima and formally opened its property subsi-diary offices in Peru in 2014.Since its creation, Echeverría Izquierdo Inmobiliaria has been involved in close to 60 projects and sold more than 7,700 units, billing a total of around US$800 million.At this time the property area is developing projects in downtown Santiago, Macul, San Miguel, Indepen-dencia, Huechuraba, San Joaquín, Quilicura, Las Condes, Lo Barnechea, Antofagasta, Concepción, Viña del Mar and Lima.

Solar Condominium in La Cisterna, Santiago, Chile.

INDUStrIAl ereCtIoNEcheverría Izquierdo Montajes Industriales has become a leader in the industrial business over its 17 years of existence. It has a diversified portfolio of important customers which has given it a presence in large-scale projects. It is known for its work in the areas of energy, mining, pulp and petrochemicals, among other sectors.Some of its most notable projects in the past have been:

• the LNG Terminals in Quintero and Mejillones,

• 2 Thermal Power Plants in the New Ventanas Complex,

• the Bocamina II Thermoelectric Power Plant,

• the Pulp Plant in New Aldea of Celulosa Arauco,

• the Power Boilers for Metso,

• the SART Plant for Compañía Minera Maricunga,

• the expansion of the plant of Cristalerías Chile,

• the Trapén Cement Plant,

• the expansion of the CMP Pellet Plant,

• the civil works and electromechanical erection of the Thickening and Tailings Area of the Minister Hales

Mine of Codelco and the EPC civil works and erection contract for the Lime Bed Plant for that same mine,

• the civil works and erection of the Phase 2 Flotation Cells for Minera Collahuasi,

• the change in molding wheels and the truck shop for the South Pit of El Teniente Division, to name a few.

Echeverría Izquierdo Montajes Industriales is currently building projects such as the Tank and Expansion of the LPG Terminal of Oxiquim in Quintero, the FGD Plants for STX, a Korean company, at Bocamina, and for Andritz and Mitsubishi in Guacolda Thermoelectric power complex. It is also performing maintenance of the Thermoelectric Power Plants of AES in Ventanas and the Power Boiler of Celco in Constitución.

Simple Cycle Power Plant, Santo Domingo de los Olleros, for Siemens in Peru.

8180

Refrigerated LPG Facility for Oxiquim-Lipigas, Quintero, Chile.

In mining, it is building the secondary and tertiary crushers and belt systems for Minera Esperanza and doing some work at the Pyrite Plant, at Collahuasi. It is also recently beginning construction of the new tailings deposit of Minera Florida, owned by Yamana Gold.Internationally, Echeverría Izquierdo Montajes Industriales completed construction in Brazil of the Causti-cizing Plant, Lime Kiln, Lumber Yard, Water Catchment Plant and the erection of 2 turbogenerators, one for 80 MW and the other for the 90 MW in the El Suzano pulp plant located in the north of Brazil. It is in the pro-cess of building the Causticizing Plant and Lime Kiln for the CMPC Pulp Plant in Guaíba and in Lima, Peru. Finally, it completed construction of a Siemens 200 MW Simple Cycle system for the Chilca Thermoelectric Power Plant and it is beginning erection of the 700 MW Simple Cycle Power System for the Thermoelectric Power Plant in Mollendo, Posco a Korean Company.

INDUStrIAl SolUtIoNSEcheverría Izquierdo Soluciones Industriales (EISI) was established in 2012 through a venture with Eche-verría Izquierdo Montajes Industriales and Parés & Alvarez, an engineering firm. Their joint work was a success, so in response to clients’ need to define the costs, periods and performance of their projects, both companies decided to create EISI to provide complete industrial solutions under an EPC modality, which would encompass the engineering, procurement of equipment and materials, construction and start-up of projects for clients in the mining, energy, petrochemical and industrial process industries.Some of its works are: a Boiler for the Inputs Area for ENAP Refinerías Aconcagua, a Truck Loading Yard for GNL Quintero (loading islands 1 and 2), Flexibilization of the SAG Ball Mill 2 for El Teniente Division of Codelco, Enlargement of the Truck Loading facility for GNL Quintero (loading islands 3 and 4) and a Lime Bed Plant for the Minister Hales Operation of Codelco.Echeverría Izquierdo Soluciones Industriales is currently developing the following Lump Sum EPC Projects: A refrigerated LPG Storage Facility for Oxiquim and a Secondary and Tertiary Crushing Line for Metso Mine-rals on behalf of Minera Esperanza.An important part of the development of Echeverría Izquierdo Soluciones Industriales has been the agre-ements made with foreign suppliers of prime technologies, which allow us to provide complete energy, mining and petrochemical solutions.

Excavations for the Arrau Office Building at Avenida Presidente Riesco 5561, Las Condes, Santiago, Chile.

CoNStrUCtIoNEcheverría Izquierdo Ingeniería y Construcción was founded in 1978, dedicated to building construction projects, mainly houses and office buildings. From early on it demonstrated its ability to successfully weather any economic instability, evidenced by how it overcame the great crisis that hit the country in the early 80’s. This was the first sign of the company’s stability and strength.By incorporating new construction techniques combined with its specialization, the company became a leader in construction, standing out against the competition because of the added value of its technolo-gies. Of note is the significant development of office buildings in downtown Santiago and in the El Golf Sector.Because of its know-how and the high standards attained in its work, Echeverría Izquierdo Ingeniería y Construcción was able to begin to develop more complex projects, such as underground parking structu-res, shopping centers, hotels, universities, hospitals and airports. This major advancement was possible thanks to the collaboration of a cohesive team and quality solutions that went beyond customers’ expec-tations. Today the Company holds ISO 9001 and OHSAS 18001 certification, a reflection of its emphasis on the operating quality of the projects and its care for the safety and health of its workers. In recent years, development has been marked both by a heavy participation in iconic national projects and by a presence on the Peruvian market, where four projects are in progress in the exclusive neighborhood of San Isidro in Lima.The subsidiary Echeverría Izquierdo Edificaciones was created in 2012 to develop housing, office and shopping center projects, educational infrastructure, health infrastructure and hotel infrastructure. Eche-verría Izquierdo Ingeniería y Construcción is also focused on civil works, underground works and public infrastructure. Both companies have a 5,500 m2 warehouse in the municipality of Quilicura where they store cranes, machinery and materials.

8382

Deep FoUNDAtIoNSPilotes Terratest S.A. is one of the companies in the Echeverría Izquierdo Group. From 1998 to 2013, it was owned by Terratest Técnicas Especiales (TTE), the largest and oldest foundations company in Spain. In October 2013, Echeverría Izquierdo purchased TTE’s interest, taking over total control of the company.Its work is centered around the field of geotechnics. It is a highly diversified company that can handle a large part of the range of excavation, drilling and land treatment systems existing at this time. Its capacity and commitment to providing integral solutions have made it a leader in the business, holding a market share of approximately 30%, and it is the largest and best known geotechnics specialist on the markets where it does business.Its strategy aims to service the entire special foundations market in Chile and neighboring countries as a highly specialized collaborator that has a capacity for integration, proven by the adoption of new technolo-gies and by its know-how and continuous growth.Pilotes Terratest S.A. is the exclusive representative of Ischebeck in Chile, a prestigious German company and the world leader in passive anchoring and micropile technology.

Micropiles, Llo-Lleo bridge in Chile.

poSt-teNSIoNINGVSL Sistemas Especiales de Construcción S.A. was formed in 1988 by Echeverría Izquierdo and VSL Inter-national. The full support of an international company with more than 50 years on the world market and the same innovative spirit fostered by the parent company in its subsidiaries have led VSL to developed and bring innovative construction systems and special solutions to Chile based on its main technique, post-tensioning. It has been key to large-scale projects implemented for the first time in Chile, such as the voussoir arch viaduct for Line 4 of the Santiago Metro System, the launched bridge at Amolanas, the post-tensioning of LNG tanks, the cantilever bridge in Huasco, the suspended building at Alcantara 99, and the Cau Cau drawbridge in Valdivia. Important milestones have been reached in terms of construction techniques, such as building the MSE wall at Esperanza, with the highest polymer pad installed through that date, and the paving of La Casa de Piedra (Stone House), now occupied by Nestlé, the largest jointless area above ground. And some techniques have yet to be introduced, such as suspension bridges, stadium decks using tie rods and tensioned carps, and the segmentation of all types of structures.It is now entering the post-tensioning slab markets in Argentina and Peru through subsidiaries and soon will be adding the MSE walls. This shows that VSL intends to continue devising structural solutions tailor-made for customers.

Post-tensioned slab and columns in the building at Alcantara 99, Santiago, Chile.

8584

CIVIl WorKSThrough its civil works business, Echeverría Izquierdo is building underground works, special works and civil works for the public and private sectors. We have built projects for the energy, mining and infrastruc-ture industries, taking advantage of the Group’s renowned experience in its different subsidiaries, always in the aim of achieving a synergy amongst them in order to provide exactly the right solution to the diffe-rent types of needs.Echeverría Izquierdo Obras Civiles aims to guarantee customer satisfaction while simultaneously meeting the highest standards of quality and safety and deadlines. It does this through an ongoing search for, and implementation of, innovation and new technologies. Through EI-OSSA, Echeverría Izquierdo Obras Civiles is currently performing the civil works for the shafts, galleries and tunnels of stations and between stations in segments 2b, 3 and 4 of Line 6 and the tunnel linking Lines 6 and 3 of the Santiago Metro System. Combined, those works run approximately 10 kms. It is employing the most modern excavation and bracing technology in this construction.

Civil works for shafts, galleries and tunnels in Segment 4 of Line 6 of the Santiago Metro System, Santiago, Chile

CoNCeSSIoNSThanks to its recognized record and experience, its capacity to create innovative solutions and its finan-cial soundness, Echeverría Izquierdo has been a part of outstanding concession projects, both public and private, throughout its history.Some examples are Citizen Square, the Cultural Center and the underground parking structure at the Mo-neda Palace, the underground parking structure at Mekis Square, across from the Municipal Theater, and the underground parking on Cathedral Street, below the Main Square in Concepción.Recently, the Concession Area has focused on forming alliances with major local and foreign companies to compete on a better footing in the main public works concession projects. One example of this is the formation of the Pudahuel Group in 2014 with Ferrovial and Icafal to participate in the tender for the con-cession of the Arturo Merino Benitez Airport in Santiago.

Underground parking at Citizen Square in Santiago, Chile

8786

VArIAtIoN IN tHe GDp oF CHIle AND CoNStrUCtIoN GDpCoMpAreD to tHe SAMe perIoD IN tHe preVIoUS YeAr

construction

imAcon

gdp

6.2 tHe INDUStrY

CoNStrUCtIoN

Activity and domestic demand performed poorly in 2014 compared to 2013. Among other factors, this was due to the early effects of the substantial cycle of mining investment made in previous years maturing. Along the same lines, the drop in real employment income – in response to high prices – led consumers to behave more cautiously. This was seen in the drop in demand for consumer and mortgage loans by households and more pronounced declines in the consumer trust indicators. The drop in production and accumulation of inventories during the year caused the business sector to adopt a more reserved stance because of the great uncertainty existing about the quantitative impact of the tax reform on profit margins. This would have been incidental to the constant loss of confidence by businesses during 2014, as measured by the IMCE. This was in a context of an international scenario where world growth was declining, mainly among Chile’s trade partners, and external financial conditions were less favorable.

In this context, the GDP rose 1.8% annually in 2014 (compared to the growth of 4.1% in 2013), in line with the general loss of dynamism in the main sectors of the economy. Domestic demand contracted 1.2% annually – a figure that contrasts with the rise of 3.4% over the 12 months of 2013. This result is consistent with a contraction in investment of around 7.0% in 12 months and a weak increase of 2.7% annually in private consumption. This is in great contrast to the figures for one year earlier (0.4% and 5.6%, respectively).

GDp BY eCoNoMIC SeCtor

Source: Central Bank of Chile, figures as of December 2014

Source: (Macroeconomics and Construction (Mach) Report #41 by Cámara Chilena de la Construcción)

2%

4%

6%

0%

-2%

8%

10%

12%

mar10

jun10

sep10

dic10

mar11

jun11

sep11

dic11

mar12

jun12

sep12

dic12

mar13

jun13

sep13

dic13

mar14

jun14

sep14

dic14

Annual average variation in the Construction GDP (compared to the same period in the previous year)

Annual average variation in the GDP (compared to the same period in the previous year).

IMACON: stands for Monthly Construction Index in Chile. Variation compared to the same period in the previous year.

Source: Central Bank of Chile and Cámara Chilena de la Construcción(CChC)

Construction, civil works and architecture, Maersk reefer factory, San Antonio, Chile.

13%

32%

32% Other

13% Mining

11% Manufacturing Industry

7% CONSTRUCTION

11% Trade

14% Business Services

13% Personal Services

11%

7%

13%14%

11%

8988

MAIN SoUrCeS oF GroWtH IN tHe INDUStrY

3,5%

Bcu-5 Bcu-10

MAIN SoUrCeS oF GroWtH IN tHe INDUStrY

The business of engineering and construction is related to variables such as growth in the Gross Domestic Product and interest rate levels. Those variables have a direct impact on investment in fixed capital and the obtainable terms of financing.

This market is known for being pro-cyclical, meaning it is more sensitive than other industries to swings in economic activity. The number of projects to be built depends directly on market expectations, growth and costs. Margins, in turn, depend on interest rates, unemployment and inflation and how those indicators evolve over time.

Activity in the real state sector is correlative to variations in unemployment and in-flation. Those indicators sensitize purchase decisions and narrow the relationship between those variables and the behavior of the industry. This area develops de-pending on terms of financing, which are determined by interest rates, among other factors.

NAtIoNAl UNeMploYMeNt rAte (%)

CoNSUMer prICe INDeX

1,1

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Annual change in the CPI

Source: Central Bank

8,58,9

7,9

6

7,2 7,5

10

7,16,6

6,1 5,7

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Data as of December of each year.

Source: Central Bank

6

2014

3%

2,5%

2%

1,5%

1%

0,5%

0%

1-Ja

n-11

1-M

ar-1

1

1-M

ay-1

1

1-Se

p-11

1-No

v-11

1-Ja

n-12

1-M

ar-1

2

1-M

ay-1

2

1-Se

p-12

1-No

v-12

1-Ja

n-13

1-M

ar-1

3

1-M

ay-1

3

1-Se

p-13

1-No

v-13

1-Ja

n-14

1-M

ar-1

4

1-M

ay-1

4

1-Se

p-14

1-No

v-14

1-Ju

l-11

1-Ju

l-12

1-Ju

l-13

1-Ju

l-14

2,4

3,7

2,6

7,8

7,1

-1,4

3

4,4

1,5

3

4,6

2014

BCU: Central Bank Bonds in Unidades de Fomento, a unit of account indexed to inflation.

9190

SIZe AND GroWtH oF tHe INDUStrY

According to estimates of the Cámara Chilena de la Construcción (CChC), the industry was worth UF 650.2 million, measured as the amount invested in infrastructure and housing in 2014. According to CChC estimations, the industry will experience an increase to UF 654.4 million in 2015. The infrastructure market represented 71% of total spending by the industry in 2014, while the housing market accounted for the remaining 29%.

Total investment in housing is expected to contract around 4.7% annually (versus the decline of 3.6% in 2014). This result is due largely to the expected drop in investment in housing complexes in the private sector (-6.8% annually), after the drop in dynamism of property sales in 2014 in comparison to previous years and the expectations of a decrease in unsubsidized housing demand in 2015.

The estimate for the growth in total investment in infrastructure would be bordering 3% annually, consistent with the effect of a lower basis of comparison as private productive investment would have adjusted considerably downwards in 2014. Moreover, the rise in investment in public infrastructure announced by the Government in 2015 will be partially offset by the expected negative variation in productive investment (-1.9% annually), all of which is in line with the fewer projects and reduction in the investment in the mining sector, followed by fewer plans to invest in the energy sector.

Source: CCHC Mach Report #41.

SAle oF HoUSeS NAtIoN-WIDe

70

4,3

7,3

11,5

14,3 14

12,8

9,4 9,9

12,6 13

11,6

14,1

15,4 15,8

14

1818,8

16,315,2

18,417,5

17

15,1

16,8

15

5,1 4,8

4,3

3,93,9

4,4 4,9

4,5

5,77,1 6,9

6,1

7,5 7,7

76,3

7 5,8 4,7

4,3

5,2

4,7

9,2 9,28,5

5,5 5,9

8,2 8,17,1

8,4 8,3 8,9 7,810,6 11,1

9,3 911,3 11,8 12,3

10,8 11,610,3

Housing ApartmentsHouses

2009

I II III IV I II III IV I II III IV I II III IV I II III IV I II III

2010 2011 2012 2013 2014

Source: CChC

000’S OF HOMES

SUpplY AND rAte oF DoMeStIC SAleS

0

10

20

30

40

50

60

0

-5

-10

-15

-20

-25

-30

-35

Apartments-Months HouseSupply

ApartmentSupply

Houses-Months

000’

S OF

HOM

ES

MON

THS UNTIL SUPPLY IS DEPLETED

2009 2010 2011 2012 2013 2014

Source: CChC

I II III IV I II III IV I II III IV I II III IV I II III IV I II III

0

treND IN CoNStrUCtIoN SpeNDING (MIllIoNS oF UF)

An exchange rate of CH$24,587.92/UF 1 was used (for March 20, 2015).

Infrastructure

Housing

2012 2013 2014 2015

100

200

300

400

500

600

700

9392

INDUStrY SeCtorS

The construction industry can be separated into two sectors: housing and infras-tructure. Investment in infrastructure comprises all investment in public and pri-vate infrastructure in the nation and it is further divided into two areas: public and productive. Echeverría Izquierdo engages in the public infrastructure area through its subsidiaries and associates Echeverría Izquierdo Ingeniería y Construcción, Pi-lotes Terratest and VSL Sistemas Especiales de Construcción. It participates in the productive infrastructure area through the subsidiaries and associates Echeverría Izquierdo Montajes Industriales, Echeverría Izquierdo Ingeniería y Construcción, Echeverría Izquierdo Edificaciones, Pilotes Terratest and VSL Sistemas Especiales de Construcción.

The housing investment area encompasses all public and private investment in hou-sing. The company has a share in this market mainly through Echeverría Izquierdo Inmobiliaria e Inversiones and Echeverría Izquierdo Edificaciones.

DISAGGreGAteD INVeStMeNt IN CoNStrUCtIoN

Estimated Forecasted

2012 2013 2014 2015

SECTOR Millions of UF

Housing 203.5 207.8 200.3 190.9

Public (a) 51.1 53.2 48.2 46.3

Private 152.4 154.6 152.1 144.6

Co-payment under social programs 33.8 34.2 32.2 32.9

Unsubsidized real estate 118.7 120.4 119.9 111.7

infrastructure 430.1 446.7 449.9 463.5

Public 132.6 136.5 141.5 161.0

Public (b) 106.7 108.9 105.7 121.2

Self-governing companies (c) 10.8 12.9 22.7 27.9

Public Works Concessions 15.0 14.7 13.1 12.0

Productive 297.5 310.2 308.4 302.4

Government companies (d) 14.8 15.6 18.1 14.8

Private companies (e) 282.6 294.6 290.3 287.6

inVestment in construction 633.6 654.5 650.2 654.4

Source: Cámara Chilena de la Construcción (CChC)(a) Investment in housing programs of the Ministry of Housing and Urbanism, the National Fund for Regional Development (FNDR) and neighborhood

improvements.(b) Real investment by the Ministry of Public Works, investment in infrastructure by the Ministry of Housing and Urbanism (urban roads and paving),

education (for full-day schools), health care (investment in infrastructure), the courts and the Office of the Attorney General (in infrastructure), the Sports Institute, the Civil Aviation Board (DGAC), an FNDR program and urban improvements.

(c) Investment in the Santiago Metro System, sanitary companies, ports, the National Railroad Company (EFE) and the Valparaiso Light Rail (Merval).(d) Investment in CODELCO, ENAMI and Gas (ENAP).(e) Investment in the forestry, industrial and mining sectors (excluding ENAMI and CODELCO), energy sector (excluding ENAP), trade, offices, private ports

and in construction in other productive sectors.

Civil works and electromechanical erection of the Pellet Plant expansion in Huasco, Chile. Erection of conveyor belts and transfer towers

DISAGGreGAteD INVeStMeNt IN CoNStrUCtIoNeStIMAtIoNS oF tHe CCHC For 2014

HOUSING

PrivatePublic Public Companies

Public Works Concessions

Private Companies

INFRASTRUCTURE

29,2% 70,8%

24% 76% 3%3% 62% 32%

Public

9594

The company is exposed to risks inherent to the industry in which it does business and to risks relating to the economic cycle of its activities.

rISKS oF eCoNoMIC CYCleS AND eCoNoMIC VArIABleS

Echeverría Izquierdo S.A. considers that both businesses, namely real estate and Engineering and Construction, are susceptible to changes in economic variables and their cycles. Engineering and Construction is dependent on investments that in turn depend on the economic cycle and the available terms of financing. It is also exposed to eventual significant changes in interest rates, credit facilities and finance costs or to alterations in economic forecasts and employment. The real estate Unit may experience significant swings due to variations in the demand for units in the target segment.

For the above reasons, the company takes an active concern and devises strategies to mitigate the effects that may be caused by economic cycles. It has diversified the markets in which it does business in order to better confront any eventual crisis in them. The company vigorously works at being awarded projects in diverse sectors of the economy in which it has proven experience, such as energy, mining, pulp, underground works, the construction of offices, hospitals, hotels, shopping centers, residential buildings and specialty projects, such as post-tensioning, deep excavations, industrial maintenance, engineering and turnkey projects.

eXCHANGe rAte rISK AND rISK oF VArIAtIoNS IN tHe CoStS oF INpUtS

The company does not believe that its income will be significantly affected by variations in exchange parities. Most of its transactions are performed in pesos and Unidades de Fomento (UF). Should an exchange risk be predicted, the company’s policy is to hedge through financial derivatives. It also protects against relevant currency mismatching arising under its contracts at the time those contracts are awarded.

There is a real contingency in the form of rises in the costs of construction materials that have an adverse impact on the company’s income, especially when they are abrupt and sustained over time (like what has occurred with the cost of manpower in recent years).

Micropiles at the Bio Bio Station of Line 6 of the Santiago Metro System, Santiago, Chile

7. rISK MANAGeMeNt

9796

For that reason, agreements are made for the main inputs in each bid by the engineering and construction unit (at the time it is formalized to customers) and cost horizons and growth forecasts are set to take into account the increases in elements that cannot be indexed to the customer and fixed through contracts or arrangements. The Chilean (UF) unit has a natural hedge against this phenomenon as both construction contracts and housing sale prices are set in Unidades de Fomento.

polItICAl AND reGUlAtorY rISK

When the authorities decide to make changes in the legal framework, it may be that investments in certain economic sectors are either postponed or accelerated. This behavior is common in the engineering and construction unit as those changes involve amendments to environmental, tax, investment and competition laws, which are critical in the analysis of the economic feasibility of a project.

The real estate area is also impacted by political and regulatory changes because its business depends on master plans, tax laws, environmental requirements, construction permits and licenses. Any change could affect the feasibility and profitability of projects and it must always be taken into consideration.

The company mitigates these risks by the high degree of diversification of its areas of business and the different markets on which it operates, including other countries like Peru, Brazil, Colombia and Argentina.

CoMpetItIoN rISK

Although the engineering and construction market and the real estate market in Chile are greatly fragmented because of the large number of companies doing business on those markets, there is a possibility that when things slow down, some of our competitors might decide to lower their prices significantly, which will affect margins and/or the profitability of projects in which the company is involved.

As things stand at this time, a larger number of foreign companies are now doing business on the Chilean market. However, the Company maintains a prestigious and consolidated position in its markets because of the experience, specialization and differentiation of its business units. It has been able to operate sustainably under highly competitive conditions.

operAtING rISKS

Given the technical and contractual complexity inherent to the

company’s contracts, an active management becomes highly important to attaining profit margins and the results projected as compared to the effects that operations might have on them.

In order to face these risks, a strategy is in place that takes into account different aspects: there is a strict cost control system where each business is monitored as an independent unit that must be profitable on a stand-alone basis. Legal and contractual assistance is also integrated to everyday operations in order to confront any contractual risk.

Arrangements have been made with the leading suppliers on the market to reduce the operating risk exposure by assuring the supply of inputs, machinery, manpower and subcontracts in general. The company’s long-standing relationships with its different subcontractors are evidence of its sustainable strategy.

lABor rISKS

Given the business in which it engages, the workers of Echeverría Izquierdo perform difficult tasks in different scenarios each day. Therefore, there is a risk of work accidents, lawsuits or legal oversight. Periods when there is a shortage of skilled labor constitute one of the other potential risks.

Aware of these risks, the Company maintains an active and ri-gorous control aimed at preventing risks, which it accomplishes through its integrated management system in the goal of cons-tantly training its workers, preventing accidents and losses, and minimizing the exposure and impact that those risky situations may have on the company. Risk prevention, training plans and the job climate are considered to be critical processes in caring for the company’s main resource: its human capital, in order to maintain knowledge of the business and the know-how that the company has developed throughout its history.

Of note in this context is both the implementation of the Integrated Management Policy in our engineering and construction subsidiary in 2013 and the 5-Star Honor awarded by the Cámara Chilena de la Construcción to our industrial erection subsidiary because of the continuing satisfactory operation of its management system.

AVAIlABIlItY oF lAND

The availability of land for the real estate unit to develop projects is one of the critical and basic points in the business. At this time, the company owns 8 properties (in Chile and Peru combined) that will be used for projects that are in different stages of development.

Piles of the Llacolen Bridge over the Bio-Bio River, 8th Region of Chile

9998

The company believes that all procedures that it has established will allow the right land to be acquired at prices that will lead to a good return on its projects. The company is continuously evaluating its inventories, land requirements and potential transactions. Presently, there is an interest in increasing the number of properties for future developments.

CreDIt rISK

The results of the Company are sensitive to the possibility that its debtors do not pay their debt when it comes due. “Trade receivables” and “Other receivables” are mainly comprised of transactions by the engineering and construction unit since operations are concentrated there.

The Company diversifies its activities to mitigate this risk and it is not dependent on one economic sector or one client or one type of business. Care is also taken in diversifying to take into account liquidity and payment capacity of project principals. In the real estate, sales are recognized only once the deed has been signed. Hence, risk is mitigated by that same transaction.

An impairment analysis is made when payment of an account has been delayed more than 365 days. If that analysis reveals that there is an impairment, a provision is made for 100% of the amount. This is done in both business segments.

lIQUIDItY rISK

Echeverría Izquierdo actively protects itself against the risk that it might default on its obligations owed to third parties, either due to common or extraordinary situations because of an excess leverage or an inappropriate forecasting or adminis-tration of cash flow. It has set down policies imposing little indebtedness in its operations, growth forecasts with a con-trolled risk, and an independent cash flow management for each company.

loSS rISK

All potential impacts that an accident or incident may have on the company’s income must be minimized. That is why Eche-verría Izquierdo S.A. carries insurance policies for its assets and includes all risks of construction and civil liability in all of its personal accident insurance policies. It has thus been able to mitigate the adverse effect of any material losses.

rISK oF eXpANDING to ABroAD

The different settings, regulatory frameworks and conditions of markets in different countries must always be taken into account. They can convert a known business into one that is not. There are differences in yields, prices, regulatory or envi-ronmental policies and other elements that may affect deadli-nes, margins and the return on projects performed outside of the country of origin, which adds uncertainty to the business.

Echeverría Izquierdo is now in the midst of an international ex-pansion. Aware of that risk, it is implementing the expansion according to a controlled and gradual international growth plan. Doing business outside of Chile preferably involves a lo-cal partner that contributes the know-how to avoid exposing the company to any additional unnecessary risk.

Minera Escondida, large-diameter piles made by Pilotes Terratest.

101100

The Echeverría Izquierdo companies take action on the basis of values that reflect excellence in service and the high quality of its processes. We are focused on our people and our Human Resources Division helps align employee performance to the strategic goals and objectives of the organization. Echeverría Izquierdo develops and enhances the talents of its workers and is truly concerned about creating initiatives that are of direct benefit to the organizational climate and help improve the quality of life of workers and their families. Echeverría Izquierdo provides social support in the workplace and has set up a Benefits Plan that includes health care, housing, and education agreements, recreational and cultural activities and that encourages sports. Some examples are the intramural or intercompany short-field soccer championships and bowling tournaments. This is coupled with initiatives that further family integration, such as scholarships and skills training programs for the family group that will give them access to better job opportunities that will be of benefit to their development in society. This helps in creating and fostering the loyalty of workers and a good job climate.

In addition, the efforts of the Human Resource Division are oriented towards attaining the proposed goals in terms of quality, productivity and job safety. We understand the importance of the value of safety in work management and in the quality of our worker’s lives, so we want to provide a structured training system that takes into account and develops the most critical competencies involved in making decisions, in organizing, planning and strategizing to overcome and correct any deviations while maintaining the excellent service for which we are known, the quality of our processes and of the end product. As a result, we have earned ISO 9001, ISO 14001, OHSAS 18001 and ASME certification (ASME Certification Mark). Echeverría Izquierdo wants to ensure that there is a culture of prevention by having its workers participate and be trained, emphasizing the control of critical risks during construction. Following international standards of quality, job safety, health and environmental care involves people in processes. Echeverría Izquierdo is constantly developing and implementing programs that are the driving force behind, and facilitate, continuing improvement. This is seen in the recognitions awarded Echeverría Izquierdo Montajes Industriales for its good results, in particular for its excellent risk prevention ratios. It has received the 5-Star Honor awarded by the Cámara Chilena de la Construcción on several occasions.

Collaborators in the 2nd and 3rd 20 Ktpd crushing line for Minera Centinela, Region of Antofagasta, Chile

8. oUr teAM

103102

6,48% Professionals

10,26% Technicians

eMploYeeS IN 2013

0

1

2

3

4

ACCIDeNt rAte

2007

2008

2009

1

2

3

4

2007

2008

2009

2010

2011

2012

2013

2007 2008 2009 2010 2011

7,36,9

5,25,0

5,5

3,5

2,5 2,5 2,63,1

0,71,2

2,51,7

0,7

ACCIDeNt rAte

(*) The period 2007 to 2013 represents Echeverria Izquierdo Ingenieria y Construccion. 2014 corresponds toEcheverria Izquierdo Edificaciones.Source: Echeverría Izquierdo and the Safety Association of the CChC.

Echeverría Izquierdo Montajes Industriales

Echeverría Izquierdo Ingeniería y Construcción (*)

Industria Construcción

2012

0,8

3,2

5,1

2013

0,31

3,4

4,65

1,01%Officers and

Senior Executives

At this time, Echeverría Izquierdo employs a competent team of more than 7,000 collaborators that are each successes in their fields of specialization thanks to an appropriate selection and ongoing concern for training workers. Echeverría Izquierdo implements action plans designed to enhance the strengths of people and overcome their weaknesses. Echeverría Izquierdo employs a Competency Model Evaluation System that determines the gaps and actions needed for the formation and development of the required team of professionals and technicians composing the organization. It also promotes better people impregnated with the values characterizing Echeverría Izquierdo.

7.094WORKERS

82,24%Employees in the field

61,52%ENGINEERING AND CONSTRUCTION

37,71%INDUSTRIAL ERECTION

0,78%REAL ESTATE

7.094WORKERS

2010

2011

2012

2013

2014

2014

2,6

0,68

4,4

2014

105104

qUALITy CERTIFIED By PRESTIGIOUS INSTITUTIONS

iso 9.001Quality Management System

iso 14.001Environmental Management System

oHsAs 18.001Occupational Health and Safety

Management System

Asme certification markAmerican Society of Mechanical

Engineers

SoMe oF oUr HoNorS

2009 esr prize Years: 2003, 2004, 2005, 2007, 2008, 2009, 2010, 2012, 2013

• certificate of Outstanding Performance

• third place in the Construction Business

• certificate of Outstanding Managerial Performance

• recognition for 1,000,000 man-hours worked without any lost-time accidents.

INVeStMeNt IN trAINING

NUMBer oF pArtICIpANtS

Echeverría Izquierdo Ingeniería y ConstrucciónEcheverría Izquierdo Montajes Industriales

totAl HoUrS oF trAINING


INVeStMeNt IN trAINING


National Training Service (SENCE) Benefit (1% (MCH$)

Total investment in training (millions of pesos)

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

892

1.499

1.902

2.441

1.736

10.160

16.876

22.567

29.875

34.084

139

175

144

54

91

128

141

105120

95

38

76

8797

113

100

CChC award for “protecting

the environment and

surroundings,” 2014

1st and 2nd place in the “Value of sustainability” contest of Minera Esperanza, 2014

Honored by the El Teniente Division of Codelco for “1 year without any accidents,” 2014

Recognition by the Mutual Safety Association for “outstanding participating in the 2014 side-by-side campaign”

2007 2008 2009 2010 2011 2012 2013 2014

107106

9. INVeStMeNt AND FINANCe polICIeS

eNGINeerING AND CoNStrUCtIoNIn this area, the Company focuses its resources on a standard replacement of its operating assets, which includes new facilities, machinery, equipment and modernization to increase and improve the quality of production. Along these same lines, there is always an option of an inorganic growth (in domestic or foreign companies) that represents a strategic and/or profitable opportunity, based on technical and economic criteria.

eNGINeerING AND CoNStrUCtIoNIn this business unit, the real estate companies in which the company has an interest usually invest in the lands that will be used to develop future real estate projects. This provides the assurance that the assets needed to satisfy its target markets are available.

The development and expansion plans of Echeverría Izquierdo in Chile and abroad are expected to be materialized through the following investment policies for each of its areas of business:

Hoisting the Central Dome of the Campiche Thermoelectric Power Plant, Ventanas, Chile

INVeStMeNt polICIeS

109108

eNGINeerING AND CoNStrUCtIoNIn this business unit, the company contracts lease-purchases or uses its own resources to make investments in machinery and equipment. The construction work is financed in two stages: the first stage uses the advances paid by the customer at the start of the project. In the second stage, real progress is invoiced to the principal once a month until the entire contract price has been paid.

The Company uses internal cash generation and working capital credit facilities to fund contracts in which advances are not made or to overcome a material mismatching of disbursements and income.

reAl eStAteIn this business unit, the policy of Echeverría Izquierdo is that lands for project development must be financed with capital, in ventures with third parties or through specific transactions with financial institutions. Bank financing is used to build projects and the land is mortgaged to the bank.

New Ventanas 240 MW coal-fired power project, Posco, Ventanas, Chile.

The finance policy of Echeverría Izquierdo is to generate its own cash and obtain third-party financing. This policy safeguards a financial structure that aims to minimize capital costs, periods and levels of indebtedness. Each of the business units follows the guidelines in this policy indicated below:

FINANCe polICIeS

111110

Civil works to build shafts, galleries and tunnels in the Marathon Shaft in Segment 3, Line 6, of the Santiago Metro system, Chile.

10. DISCloSUreSIN 2014

AprIl 1, 2013: CoNVoCAtIoN oF reGUlAr SHAreHolDerS MeetINGAt its meeting held March 25, 2014, the Board of Directors of Echeverría Izquierdo S.A. resolved to convene a Regular Shareholders Meeting of the company, to be held at 10:00 a.m. on April 29, 2014, to decide on matters inherent to that type of meeting.

AprIl 1, 2014: CoNVoCAtIoN oF A SpeCIAl SHAreHolDerS MeetINGAt its meeting held March 31, 2014, the Board of Directors of Echeverría Izquierdo S.A. resolved to convene a Special Shareholders Meeting of the company for April 29, 2014, right after the Regular Shareholders Meeting, for the purpose of proposing to the shareholders a new plan for the purchase of as many as 2,687,939 shares of treasury stock for the workers of the company and its subsidiaries and to propose the duration of the plan, minimum and maximum prices payable, authorization to the Board to set the minimum and maximum prices and the other matters required to implement this plan.

AprIl 29, 2014: reSolUtIoNS oF tHe SpeCIAl SHAreHolDerS MeetING.On April 29, 2014, the Special Shareholders Meeting of Echeverría Izquierdo S.A. approved the new plan to acquire as many as 2,687,939 shares of treasury stock representing no more than 1% of the capital. That purchase plan will be in effect for one year. The Board was also empowered to set the minimum and maximum prices payable for the shares and to acquire as much as 1% of the share capital directly in stock exchange sessions in any 12-month period without having to apply the proration procedure.

It was also disclosed that on April 30, 2014, the period for the acquisition of treasury stock began for implementation of that plan.

113112

11. 1 Corporate Structure Echeverría Izquierdo S.A.

11. 2 Echeverría Izquierdo Inmobiliaria e Inversiones S.A.

11. 3 Echeverría Izquierdo Montajes Industriales S.A.

11. 4 Echeverría Izquierdo Ingeniería y Construcción S.A.

11. 5 Echeverría Izquierdo Edificaciones S.A.

11. 6 Pilotes Terratest S.A.

11. 7 Inversiones CHR S.A.

11. 8 Inversiones Newall S.A.

11. SUBSIDIArIeS AND ASSoCIAteS

Civil works at the Nuñoa Station Shaft to build shafts, galleries and tunnels in Segment 3 of Line 6, Santiago Metro system, Chile

115114

11.1 CorporAte StrUCtUre eCHeVerrÍA IZQUIerDo S.A..99,00%50,00%50,00%33,33%

1,05%0,33%0,02%

EI Asesorías y Gestión Ltda. Cons. Const. Bravo Izq. Ech. Izq Ltda.Consorcio EI OSSA S.A.Consorcio Cerro Provincia S.A.Pilotes Terratest ArgentinaEcheverría Izquierdo Perú S.A.C.Echeverría Izquierdo Inmob. e Inv. S.A.

99,99% VSL Sistemas Especiales de

Construcción Perú S.A.C.

99,67% Echeverría Izquierdo Perú S.A.C. 50,00% Consorcio CyJ Echeverría Izquierdo S.A.C.1,00% EI Asesorías y Gestión Ltda.

eCHeVerrÍA IZQUIerDo INGeNIerÍA Y CoNStrUCCIóN S.A.

99,99%

eCHeVerrÍA IZQUIerDo INMoBIlIArIA e INVerSIoNeS S.A..

99,98%

99,99% 99,99% 99,99%99,99%99,99% 99,99%99,99% 99,99% 99,99%

33,33%98,00% 50,00% 50,00% 50,00%50,00%42,48%

Inmobiliaria Las Torres 200 S.A.Inmobiliaria Macul S.A.Inmobiliaria Santa Rosa Esquina S.A. Inmobiliaria Brigadier de la Cruz S.A.Inmobiliaria Independencia - Zañartu S.A.Inmobiliaria Moneda S.A.Inmobiliaria Inés Rivas La Cisterna S.A.Inmobiliaria Cerro del Mar S.A.Echeverría Izquierdo Inmobiliaria Perú S.A.C.

Inmobiliaria Aricota S.A.C. Inmobiliaria Cerro Pirámide S.A.Inmobiliaria La Capilla S.A.Inmobiliaria Recoleta 5200 Ltda.Inversiones Inmobiliarias Puerto Nuevo S.A.Inmobiliaria Vaticano Alcántara Ltda.Inmobiliaria Rucalhue Ltda.

78,29%37,57%

30,00% 17,27%

11,52%

VSl SISteMAS eSpeCIAleS De CoNStrUCCIoN CHIle S.A.

50,00%

FONDOS DE INVERSIóN PRIVADOS:Cumbres Blancas S.A. para FIP Plaza Bulnes Cumbres Blancas S.A. para FIP Gabriela Mistral Metrópolis S.A. para FIP Bello Horizonte Américo Vespucio S.A. para FIP San Ignacio Americo Vespucio S.A. para FIP Santa Victoria

Inmobiliaria Purema S.A.Inmobiliaria Vespucio Sur S.A.Inmobiliaria BH S.A.Const. e Inmob. Hermanos Amunátegui S.A.Inmobiliaria Puerto Nuevo Antofagasta S.A.Inmobiliaria Parque Manantiales S.A.Inmobiliaria SJS S.A.Inmobiliaria Víctor Lamas S.A.Inmobiliaria Cougar S.A.

40,00% 40,00%40,00% 34,00% 33.33% 33,30% 33,30%30,00% 25,00%

eCHeVerrÍA IZQUIerDo MoNtAJeS INDUStrIAleS S.A.

99,99%

50,00%

eCHeVerrÍA IZQUIerDo eDIFICACIoNeS S.A..

99,99%

pIloteS terrAteSt S.A.

99,99%

VSl SISteMAS eSpeCIAleS De CoNSt. ArGeNtINA S.A.

99,99%50,00%51,00%

50.00% 50.00%50.00%29,00%

Echeverría Izquierdo Montajes Industr. Perú S.A.C. Echeverría Izquierdo Soluciones Industriales S.A.Nexxo S.A. 50% Cons. Montaje Industrial EI Nexxo Ltda. 99,0% Econexxo Ltda. 99,4% Arnexx S.A.Cons. Montaje Industrial EI Nexxo Ltda. Milplan Eimisa Montagens Industriais S.A.Constructora DSD Echeverría Izquierdo Ltda. Pares & Álvarez S.A. 50,0% Echeverría Izquierdo Soluciones Industriales S.A.

99,99% 98,95% 99,99% 50,00% 50,00%

Pilotes Terratest Perú S.A.Pilotes Terratest Argentina S.A.Pilotest Terratest Ecuador Cons. Soletanche Bachy Pilotes Terratest S.A.Equipos y Terratest S.A.S.

99,99%

99,99%

33,33% 33,33%

8,16% 1,95% 0,01%

Inversiones CHR S.A 33,33% Consorcio Hospital de Rancagua S.A.Inversiones Newall S.A 50,00% Newall S.A Consorcio Brotec EI y Otros S.A.Const. Brotec EI y Bravo Izquierdo Ltda. Regemac S.A.CCHC Marketplace S.A.Pilotes Terratest Perú S.A.C.

117116

FIRM NAME:

eCHeVerrÍA IZQUIerDo INMoBIlIArIA e INVerSIoNeS S.A.

tYpe of compAnY: Closed stock corporation

tAxpAYer identificAtion numBer: 96.816.220-9

Business: Investment in securities and properties in Chile and abroad, in particular stocks, bonds, debentures, credits, interests, commercial paper, real estate, shares therein; and the purchase, sale or keeping of such investments, acquiring an interest or becoming a partner in enterprises or companies of any nature; creating, financing, promising to create and managing, for its own account or third parties, any type of business, enterprise or company; receiving and investing the returns on investments; the purchase, sale, manufacture, elaboration, import and export of chattel, real estate, items, products and raw materials for its own account or for third parties; assuming representations, agencies, commissions and mandates; promoting and exporting and conducting other activities that are related or conducive to the foregoing.

direct And indirect interest Held BY ecHeVerríA izquierdo s.A.: 100%

cApitAl suBscriBed And pAid At decemBer 31, 2014: CH$15,301,356,486

BoArd of directors:Fernando Echeverría Vial (*)Álvaro Izquierdo Wachholtz (*)Bernardo Echeverría Vial (*) (Chairman)Ricardo Levy Guarda

cHief executiVe officer: Raimundo Cruzat Correa

positions in ecHeVerríA izquierdo s.A.: (*) Director of Echeverría Izquierdo S.A.

relAción comerciAl con ecHeVerríA izquierdo s.A.: Ownership relationship

percentAge tHAt tHe inVestment represents compAred to All indiViduAl Assets of tHe pArent compAnY: 19.20%

11.2FIRM NAME:

eCHeVerrÍA IZQUIerDo MoNtAJeS INDUStrIAleS S.A.



Business: Any type of engineering, construction and industrial erection for its own account or for others; the rendering of any type of services, technical assistance and the realization of studies or designs relating to engineering, construction and industrial erection.



BoArd of directors:Fernando Echeverría Vial (*)Álvaro Izquierdo Wachholtz (*) Bernardo Echeverría Vial (*)Darío Barros Ramírez (*) (Chairman)Ricardo Levy Guarda

cHief executiVe officer: Jan Huss


commerciAl relAtionsHip WitH ecHeVerríA izquierdo s.A.: Ownership relationship


11.3

119118

FIRM NAME:

eCHeVerrÍA IZQUIerDo INGeNIerÍA Y CoNStrUCCIóN S.A.



Business: Any type of engineering and construction for its own account or for others; the rendering of any type of services, technical assistance and the realization of studies or designs relating to engi-neering and construction.



BoArd of directors:Fernando Echeverría Vial (*) (Chairman)Álvaro Izquierdo Wachholtz (*)Bernardo Echeverría Vial (*)Darío Barros Ramírez (*)Pablo Inhen de la Fuente (*)

cHief executiVe officer: Pablo Ivelic Zulueta




11.4FIRM NAME:

eCHeVerrÍA IZQUIerDo eDIFICACIoNeS S.A.



Business: Any type of engineering and construction for its own account or for others; the rendering of any type of services, technical assistance and the realization of studies or designs relating to enginee-ring and construction.



BoArd of directors:Fernando Echeverría Vial (*) (Chairman)Álvaro Izquierdo Wachholtz (*) Bernardo Echeverría Vial (*)Darío Barros Ramírez (*)Pablo Inhen de la Fuente (*)





11.5

121120

FIRM NAME:

pIloteSterrAteSt S.A.



Business: The rendering of services and assistance in connection with engineering; the construction of civil works of any nature for its own account or for others; the import, export, commercialization, distribution, sale and lease of chattel of any nature in any way, in particular in relation to engineering and construction.



BoArd of directors:Fernando Echeverría Vial (*) (Chairman)Álvaro Izquierdo Wachholtz (*) Bernardo Echeverría Vial (*)José María Echave Rasines

cHief executiVe officer: Aldo Guzmán Giuliani




11.6

tYpe of compAnY: Closed Stock Corporation


Business: Investment in any type of company and realization of any type of engineering and construction work of any type for its own account or others; the rendering of any type of service, technical assistance and the realization of studies and projects relating to engineering and construction.



BoArd of directors:Fernando Echeverría Vial (*) (Chairman)Bernardo Echeverría Vial (*)Darío Barros Ramírez (*)Álvaro Izquierdo Wachholtz (*)Pablo Ihnen De la Fuente (*)


positions in ecHeVerríA izquierdo s.A.: (*) Director of EI S.A.

commerciAl relAtionsHip WitH ecHeVerríA izquierdo s.A..: Ownership Relationship


FIRM NAME:

INVerSIoNeS CHr S.A.

11.7

123122

Nueva Apoquindo, Santiago, Chile

tYpe of compAnY: Closed Stock Corporation


Business: Investment in any type of company and realization of any type of engineering and construction work of any type for its own account or others; the rendering of any type of service, technical assistance and the realization of studies and projects relating to engineering and construction.



BoArd of directors:Fernando Echeverría Vial (*) (Chairman)Bernardo Echeverría Vial (*)Darío Barros Ramírez (*)Álvaro Izquierdo Wachholtz (*)Pablo Ihnen De la Fuente (*)


positions in ecHeVerríA izquierdo s.A.: (*) Director of EI S.A.

commerciAl relAtionsHip WitH ecHeVerríA izquierdo s.A.: Ownership Relationship


FIRM NAME:

INVerSIoNeS NeWAll S.A.

11.8

125124

SYNtHeSIS oF CoMMeNtS AND propoSAlS MADe BY tHe BoArD oF DIreCtorS AND SHAreHolDerS

They did not receive comments on the Company about the conduct of business made in the financial year 2014, either by the Board of Directors, Shareholders or groups of shareholders who achieve 10% or more of the issued shares with voting rights, in accordance with Article 74 of Law 18,046 of Corporations.

Secondary and tertiary Crushing line For Metso/Minera Centinela In Sierra Gorda, Region of Antofagasta, Chile.

127126

eCHeVerrÍA IZQUIerDo S.A.reSpoNSIBIlItY StAteMeNt

The undersigned, in their capacity as directors and Chief executive officer of Echeve-rria Izquierdo SA, as appropriate, declare under oath that the information contained in the Consolidated Financial Statements of December 2014 of Echeverria Izquierdo S.A 31, is true.

The financial statements were approved at the Extraordinary Board Meeting held on March 17, 2015.

The statement is made in compliance with the provisions of Circular Number 1924 of the Superintendency of Securities and Insurance.

March 17, 2015

álVAro IZQUIerDo WACHHoltZDIRECTORRUT Nº 6.686.307-7

FerNANDo eCHeVerrÍA VIAlCHAIRMAN OF THE BOARDRUT Nº 6.065.433-6

FrANCISCo GUtIérreZ pHIlIppIDIRECTORRUT Nº 7.031.728-1

BerNArDo eCHeVerrÍA VIAlDIRECTORRUT Nº 6.638.550-7

DArÍo BArroS rAMÍreZDIRECTORRUT Nº 4.599.313-2

pABlo IHNeN De lA FUeNteDIRECTORRUT Nº 6.866.516-7

MArCelo AWAD AWADDIRECTORRUT Nº 6.374.984-2

CrIStIáN SAItúA DoreNCHIEF EXECUTIVE OFFICERRUT Nº 11.833.589-9

Rosario Norte 532, 8th floor, Las Condes, Santiago.+56 2 2631 [email protected]

annual report 2014 - ei.clei.cl/wp-content/uploads/2015/02/memoria-ei-2014-inglÉs.pdf ·...

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