2019 2019 Cor Corpor porate te Pr Presenta esentation tion - PowerPoint PPT Presentation

2019 2019 Cor Corpor porate te Pr Presenta esentation tion

Overview

ARAUCO at a glance Empresas Angelini Shareholder Structure AntarChile Copec Group 99.98% 74.30% 60.82% International Scale National Scale BBB Fitch Ratings AA- (Negative) Fitch Ratings (Negative) BBB- S&P Credit Ratings (Negative) AA Feller Rate Baa3 (Stable) Moody’s (Stable) EBITDA 1,147 Net Debt/EBITDA 3.9x Financial highlights 2019 EBITDA Margin 22% Net Debt/Equity 82% In US$million Debt 6,050 Net Income 62 Cash 1,560 CAPEX 1,350 As of December 2019

DIVERSIFIED SALES REVENUE BY REGION AROUND THE WORLD Others Forestry 3% 3% Revenues MUS$5,329 Wood Pulp 32% 32% 51% 43% Asia and Oceania North America Others -5% Forestry 22% Adjusted EBITDA 24% 8% MUS$1,147 Pulp Central and Wood Europe South America 58% products 25% 4% Others As of December 2019 LTM (1) Pulp and Wood products include energy sales 4

THREE STRATEGIC BUSINESS SEGMENTS Forestry Pulp Wood products Complementary energy operations Panels Solid Wood 2 Mills 7 Sawmills: 2,646 th. m 3 10 Power Plants Plywood (5) : 710 th. M 3 MDF: 515 th. m 3 697 th. Ha (1) 5 Mills 606 MW PB: 340 th. m 3 4 Rem. Facilities 2,905 th. t Surplus: 219 MW 2 Mills 2 Power Plants 1 Sawmill: 318 th. m 3 1 Mill MDF: 300 th. m 3 82 MW 1 Rem. Facility 133 th. Ha (1) 350 th. t PB: 260 th. m 3 Surplus: 8 MW 4 Mills MDF: 1,530 th. m 3 130 th. Ha (1) PB: 720 th. m 3 1 Power Plant 1 Mill 91 MW (2) 79 th. Ha (1) (2) 710 th. t (2) Surplus: 50 MW 10 Mills MDF: 1,470 th. m 3 PB: 2,104 th. m 3 2 Mills MDF: 250 th. m 3 PB: 339 th. m 3 10 Mills (3)(4) PB: 1,165 th. m 3 1 Sawmill (3) : 25 th. m 3 MDF: 741 th. m 3 OSB: 258 th. m 3 Total 10.1 million m 3 3.7 million m 3 1.0 million ha 4.0 million t 779 MW As of December 2019 (4) One PB mill in South Africa is currently shut down (1) Considers hectares planted, in thousands (5)Considers 2 plywood mills. (2) Considers 50% of Montes del Plata (6)As of the date of publication of this report, 2 MDF mills are shut down. Also, the PB lines of two different mills are also shut down. (3) Considers 50% of Sonae Arauco 5

WE ARE A MAIN PLAYER IN Market Pulp Capacity (thousand tonnes) THE GLOBAL MARKET Suzano 5,225 ARAUCO (*) IP (exc. Ilim) CMPC #2 In market APRIL pulp capacity Metsa Group in the world UPM-Kymmene Georgia Pacific MAPA’s new capacity Stora Enso APP (excl. PE) 0 2,000 4,000 6,000 8,000 10,000 World Panels** Capacity (thousand m 3 ) Kronospan 9,916 ARAUCO (*) #2 In Panels Egger capacity in Norbord the world Swiss Krono Kastamonu Georgia Pacific Louisiana Pacific Pfleiderer Duratex 0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 World market pulp and panel competitors capacity as of December 2019 *Arauco capacity includes 50% of Montes del Plata, 50% Sonae Arauco, and MAPA Project, as of December 2019 **Panels refers to Composite Panels, which corresponds to MDF, PB and OSB. Source: Hawkins Wright, Public fillings, Arauco estimations and Company information and fillings 6

MAXIMIZING THE VALUE OF EVERY TREE PULP EKP BSKP UKP Fluff DissolvingPulp PULP MILLS SURPLUS 277 MW Chips HEAT ENERGY National Grid PRODUCTION &STEAM MDF/PB Plywood WOOD SawnTimber PRODUCTS Rem.Wood Products MILLS WOOD PRODUCTS 7

BUSINESS SEGMENTS

FORESTRY BUSINESS Total Plantations Includes plantations in Chile, Argentina, Brazil and Uruguay Planting and harvesting In thousand hectares In thousand hectares 1,038 90 71 ha 80 70 55 ha 60 50 37 ha 40 30 23 ha Planted hectares 20 Harvested hectares 10 2003 2005 2007 2009 2011 2013 2015 2017 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Hectares Planted 1.8 million (*) Environmental Certifications Our forests plantations have international hectares owned Pine : 70 th. certification in Forestry Management and Chain Euca: 60 th. Others: 0.2 th. of Custody 1.0 million 130 th. For detailed information about each certification, you can visit our hectares planted web site www.arauco.com Euca: 78 th. Pine: 0.1 th. Others: 0.4 th. Pine : 503 th. 667 th . of Pine Euca: 192 th. 79 th. Pine : 94 th. Others: 2 th. 349 th . of Euca Euca: 19 th. 697 th. 22 th . Others Others: 20 th. 133 th. (*) includes 515 th. hectares of native forest plantations. As of December 2019 9

FORESTRY BUSINESS Bioforest research and development Bioforest was formed in 1990 by Arauco and one of the achievements has been the increase in the plantation yields by 40% 59 Highly trained researchers ● Bioforest has a wide participation in local and international organizations that are leaders in the forestry-industrial scientific knowledge work in order to develop and apply the best technologies, ● In addition, Bioforest aims to fulfill the environmental maximizing the forestry and objectives for the protection and conservation of industrial resources. biodiversity present in our native forests ● During October 2019 and after 3 years of work, Bioforest discovered a species of fungus that is affecting more than 80% of the chilean Araucaria. This fungus has already killed 10% of that protected native tree species. 10

PULP BUSINESS Production million tonnes 3.8 3.7 3.7 4 3.6 3.4 3.3 3 Pulp Sales 2 1 MUS 0 2014 2015 2016 2017 2018 2019 $2,296 EKP BSKP UKP Fluff Sales volume: 3.7 million tonnes Fluff Europe UKP Does not include energy sales 4% 17% As of December 2019 LTM 13% FLUFF DP (4) EKP (1) BSKP (2) UKP (3) America 11% EKP China 48% 54% Rest of the World BSKP 12% Korea 35% 6% (1) Eucalyptus Kraft Pulp (2) Bleached Softwood Kraft Pulp (3) Unbleached Kraft Pulp (4) Dissolving Pulp As of December 2019 LTM 11

PULP BUSINESS OUR MILLS in thousand tonnes LICANCEL 160 UKP CONSTITUCION ALTO PARANA 350 BSKP & Fluff 355 UKP Swing mill MAPA PROJECT (2021) NEW LINE 3 1,560 EKP ARAUCO MILL LINE 1: 290 EKP Line 1 will be shut down LINE 2: 510 BSKP upon completion. NUEVA ALDEA MONTES DEL PLATA 520 EKP 1,414 EKP 520 BSKP Arauco owns 50% VALDIVIA 550 EKP As of December 2019 12

PULP BUSINESS COMPETITIVE ADVANTAGES 2. Cost Advantages 1. Logistic Efficiency 620 East Canada Coastal BC Int. West Canada 570 Japan Japan Finland US Other Europe US 520 Sweden Cash Cost, CIF China China Bel/France 470 East Europe Iberia US$/ADt Canada Indonesia Finland 420 Sweden Average distances from Average distances from Other Asia East Europe Forests to Mills Mills to Ports 370 Chile Km Chile/Uruguay Other World 320 420 Chile Licancel 85 Brazil Constitucion 316 270 Argentina 80 63 Nueva Aldea 220 Uruguay 282 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Arauco 35 Annual capacity (000s ADt) Valdivia 301 Arauco Alto Paraná 1,200 BHKP BSKP Montes del plata 0 Weighted Avg. 161 (2) 205 (1) Source: Hawkins Wright, as of December 2019 Other world includes Argentina, China and Oceania. with MAPA Source: ARAUCO, as of December 2019 (1) Calculated using sales volume for 2019 (2) Calculated including sales volume from ARAUCO ´ s Line 3 expected capacity and assuming Line 1’s shutdown 13

PULP BUSINESS COMPETITIVE ADVANTAGES 3. Product Diversification BCP world industry demand by End-use, 2018 (2) (48%) FLUFF 9% SOFTWOOD UKP 13% (52%) CurrentCapacity HARDWOOD 4.0 million tonnes EKP BSKP 52% 26% DP 4% FLUFF (60%) 7% UKP HARDWOOD 10% (40%) Projected Capacity SOFTWOOD 5.2 million EKP Including MAPA’s tonnes 59% BSKP capacityand DP (1) 20% (2) Source: Hawkins Wright, as of December 2019 Source: ARAUCO, as of December 2019 BCP: Bleached Chemical Pulp, which includes all bleached kraft pulp (and not unbleached) (1)Dissolving Pulp and sulphite pulp 14

WOOD PRODUCTS BUSINESS Sales evolution US$ billion 2.8 2.7 2.7 3 2.6 2.6 2.5 2 Revenues 1 MUS 0 2014 2015 2016 2017 2018 2019 Panels Solid wood $2,742 Subdivisions Does not include energy sales As of December 2019 LTM PANELS SOLID WOOD 15

WOOD PRODUCTS BUSINESS: PANELS Production million m 3 7 6.0 5.6 6 4.9 4.8 4.8 4.8 5 4 Panels Sales 3 2 1 MUS 0 2014 2015 2016 2017 2018 2019 MDF PB Others $1,859 Sales volume: 5.9 million m 3 Others** Others* Chile 4% 4% Does not include energy sales 3% Argentina As of December 2019 LTM 6% Mexico 10% MDF 53% PBO 44% USA and Brazil Canada 25% 51% As of December 2019 LTM Does not include Sonae Arauco volumes *OSB, HB, Retail and Composite panels ** EMEA, Asia, Oceania and Rest of Latam 16

PANELS OUR MILLS 2 mills 470 m 3 MDF 4 mills * in thousands 974 m 3 PB 886 m 3 MDF 516 m 3 OSB 2 mills* 140 m 3 MDF 428 m 3 PB 2 mills* 372MDF 456 PB 8 mills (**) 1,000 m 3 MDF 2,104 m 3 PB 2 mills 339 m 3 PB 250 m 3 MDF 4 mills 1,530 m 3 MDF 720 m 3 PB 2 mills* 472 m 3 PB*** 84 m 3 MDF 3 mills 515 m 3 MDF 340 m 3 PB Legend 2 mills MDF: Medium Density Fiberboard 300 m 3 MDF PB: Particle Board 260 m 3 PB OSB: Oriented Strand Board As of December 2019 *Arauco owns 50% of Sonae Arauco **As of the date of publication of this report, 2 MDF mills are shut down. Also, the PB lines of two different mills are also shut down. ***One PB mill in South Africa is currently shut down 17