INTEGRATED REPORT 2020 INDEX 4 28 70 92 320 PRESENTATION CORPORATE GOVERNANCE SECURITY METHODOLOGY SWORN STATEMENT 29 Policies and practices 71 Everyone’s commitment 93 Construction of the report 31 Governance structure 96 GRI content index 35 Ownership structure 102 Global Compact 5 38 Policies 103 External assurance 321 HIGHLIGHTS 74 104 Glossary CORPORATE STRUCTURE LATAM GROUP EMPLOYEES 42 75 Joint challenge OUR BUSINESS 78 Who makes up LATAM group 105 12 81 Team safety APPENDICES 322 LETTER FROM THE CEO 43 Industry context CREDITS 44 Financial results 47 Stock information 48 Risk management 83 50 Investment plan LATAM GROUP CUSTOMERS 179 14 FINANCIAL INFORMATION INT020 PROFILE 84 Connecting people This is a 86 More digital travel experience 180 Financial statements 2020 navigable PDF. 15 Who we are 51 270 Affiliates and subsidiaries Click on the 17 Value generation model SUSTAINABILITY 312 Rationale buttons. 18 Timeline 21 Fleet 52 Strategy and commitments 88 23 Passenger operation 57 Solidary Plane program LATAM GROUP SUPPLIERS 25 LATAM Cargo 62 Climate change 89 Partner network 27 Awards and recognition 67 Environmental management and eco-efficiency Presentation Highlights Letter from the CEO Profile Corporate governance Our business Sustainability Integrated Report 2020 3 Security Employees Customers Suppliers Methodology Appendices Financial information Credits translated at the exchange rate of each transaction date, • Unless the context otherwise requires, references to “TAM” although a monthly rate may also be used if exchange rates are to TAM S.A., and its consolidated affiliates, including do not vary widely. TAM Linhas Aereas S.A. (“TLA”), which operates under the name “LATAM Airlines Brazil”, Fidelidade Viagens e Turismo Conventions adopted Limited (“TAM Viagens”), and Transportes Aéreos Del * Unless the context otherwise requires, references to Mercosur S.A. (“TAM Mercosur”). “LATAM Airlines Group” are to LATAM Airlines Group S.A., the unconsolidated operating entity, and references to • Throughout the text, the GRI indicators are mentioned “LATAM,” “the group”, “we,” “us”, or the “Company” are to between brackets, ordered in the GRI contents index, in the LATAM Airlines Group S.A. and its consolidated affiliates: Methodology chapter. Presentation Transporte Aéreo S.A. (“LATAM Airlines Chile”), LAN Perú S.A. (“LATAM Airlines Peru”), Aerolane, Líneas Aéreas Nacionales The LATAM Integrated Report 2020 presents, transparently del Ecuador S.A. (“LATAM Airlines Ecuador”), LAN Argentina Enjoy your reading! and objectively, the main results and challenges faced by the S.A.(“LATAM Airlines Argentina,” formerly Aero 2000 S.A.), business on the economic, social, and environmental fronts. Aerovías de Integración Regional, Aires S.A. (“LATAM Airlines The publication covers all the companies in the group in the Colombia”), TAM S.A. (“TAM” or “LATAM Airlines Brazil”), period between January 1 and December 31, 2020. It has LAN Cargo S.A. (“LATAM Cargo”) and the two regional cargo been prepared in accordance with two international reporting affiliates: Linea Aerea Carguera de Colombia S.A. (“LANCO”) benchmarks: the guidelines from the Global Reporting in Colombia and Aerolinhas Brasileiras S.A. (“ABSA”) in Brazil. Initiative (GRI) and the integrated reporting principles of the International Integrated Reporting Council (IIRC). • Other references to “LATAM”, as the context may require, are to the LATAM brand, which was launched in 2016 Any suggestions, comments, or questions The group’s financial statements are an integral part and brings together, under one internationally recognized regarding the report may be submitted via of the report. LATAM Airlines Group S.A.and most of its name, all of the affiliate brands, such as LATAM Airlines e-mail to [email protected] and affiliates maintain their accounting records and prepare Chile, LATAM Airlines Peru, LATAM Airlines Argentina, [email protected]. 102-53 their financial statements in US dollars; some use Chilean LATAM Airlines Colombia, LATAM Airlines Ecuador, and pesos, Colombian pesos, or Brazilian reals. LATAM Airlines LATAM Airlines Brazil. Group S.A. consolidated financial statements include the results of these affiliates translated into US dollars. The • References to “LAN” are to LAN Airlines S.A., currently International Financial Reporting Standards (IFRS) as issued known as LATAM Airlines Group S.A., in connection with by the International Accounting Standards Board (IASB), circumstances and facts occurring prior to the completion require assets and liabilities to be translated at period-end date of the combination between LAN Airlines S.A. exchange rates, while revenue and expense accounts are and TAM S.A. Presentation Highlights Letter from the CEO Profile Corporate governance Our business Sustainability Integrated Report 2020 Presentation 4 Security Employees Customers Suppliers Methodology Appendices Financial information Credits HIGHLIGHTS 2020 CONNECTING PEOPLE AND REGIONS SOLIDARY AIRPLANE PROGRAM STRENGTH IN FACE OF ADVERSITY During the pandemic, LATAM’s role took The group’s experience in passenger and LATAM responded quickly and responsibly to the on even greater relevance in the logistics cargo transport brings support, care, and greatest crisis in the history of aviation of South America hope to those in need DIP (Debtor In Possession) NEW DIGITAL Over 160 thousand stranded 1.3 thousand tickets donated FINANCING EXPERIENCE people were transported back to healthcare professionals Services and information on the frontlines against the It gained access for easy and fast access to to their place of origin, 20% of up to US$2.45 pandemic and to patients under the customer’s preferred them on flights exclusively for billion to prepare platform (app, website, repatriation treatment for other diseases its restructure or message) 86 flights from China to South America with medical materials 39.5 tons of medical materials and equipment, such as face transported EBITDA (US$ thousand) Revenues 2020 masks and respirators EBITDA Margin (US$ thousand) 21.8% Transport of 1,000 tons of 21.2% 129.2 tons of humanitarian 9% medical materials and Covid-19 aid for the region of San detection tests to the countries Andres (Colombia), affected by of South America 2,259,612 hurricane Iota 2,211,578 -6.4% 28% Transport of stem cells, organs, 63% and tissue for transplants -275,902 2018 2019 2020 Passengers: 2,713,774 Supply to isolated Assistance against EBITDA: earnings before interest, regions of Brazil, Chile, the fires in taxes, depreciation, amortization, and Cargo: 1,209,892 Colombia, Ecuador, Pantanal (Brazil) aircraft leasing. Others: 411,002 and Peru The values from 2018 were discloses pursuant to IFRS 2016 accounting Total: 4,334,668 standards. Presentation Highlights Letter from the CEO Profile Corporate governance Our business Sustainability Integrated Report 2020 5 Security Employees Customers Suppliers Methodology Appendices Financial information Credits None of this would be possible without the people who make up LATAM Presentation Highlights Letter from the CEO Profile Corporate governance Our business Sustainability Integrated Report 2020 Highlights 6 Security Employees Customers Suppliers Methodology Appendices Financial information Credits eeing the airport empty, the he hardest thing in the last year has airplanes parked, stores and been seeing how the pandemic affected restaurants closed, everyone LATAM in terms of operation, closing Swearing a face mask, feeling people’s Tand decreasing frequencies, and even closing fear of becoming infected and not being subsidiaries. The most beautiful thing is that it able to get as close as before to one’s generated acts of solidarity. In Ecuador, LATAM coworkers and passengers was tough was one of the airlines that provided support and sad. Not flying for nearly 6 months Esteban Tonini for humanitarian flights and, with the Solidary was even harder. The day when they Cabin Crewmember –In-Flight Service Airplane, allowed the transfer of essentials said that the Jorge Chavez [Lima, Peru] Quito, Ecuador and medical supplies throughout the region, airport was opening its doors again 2 years at LATAM making it possible to help millions of people was a day of joy. We were finally back! when they needed it most. Putting on my uniform after such a long time was exciting. I was returning to The company also kept us abreast of the “my office”, I was returning to do what I situation. They were always transparent and love so much. sincere. Communication was always open, which showed respect for us, generating a job I hope we will come out of this bigger motivation that influenced the commitment to and stronger after the pandemic. Both our work. María José Bravo-de-Rueda Alarcón we and LATAM had plans that were Cabin Crew Trainee –In-Flight Service forced into pause, and I hope that they Lima, Peru can be restarted soon. 3 years at LATAM Presentation Highlights Letter from the CEO Profile Corporate governance Our business Sustainability Integrated Report 2020 Highlights 7 Security Employees Customers Suppliers Methodology Appendices Financial information Credits took this photo on a flight from New York he hardest thing experienced (United States) to Guayaquil (Ecuador). in 2020 was when the CEO When I operated several humanitarian announced that staff reductions Iflights, I was filled with joy to see hundreds Twould have to be made and many of passengers whom we were able to families would be affected. Seeing