ARAUCO Corporate Presentation renewables for a better life 1 Arauco Overview Business Segments Future Investments Recent Events and Initiatives Sustainability 2 HISTORY OF ARAUCO 2003 September 2017 ...and today we are a world class player in the forestry products 15 years ago, we were a Chilean based forestry and pulp firm… Industry Europe(1) 8 Panel mills North 1 Sawmill America 8 Panel mills + Grayling Brazil 2 Panel mills Chile Chile + Masisa 3 Pulp mills 5 Pulp mills 3 Panel mills 4 Panel mills 7 Sawmills (2) 11 Sawmills Argentina Uruguay South 1 Pulp mill 1 Pulp mill Africa(1) 1 Panel mill Argentina 2 Panel mills 2 Sawmills 1 Pulp mill 2 Panel mills 1 Sawmill Revenues US$1.5bn Revenues US$5.1bn(3) Pulp Capacity 1.6 mm AdT Pulp Capacity 3.9 mm AdT Panel Capacity 1.0 mm m3 Panel Capacity 8.7 mm m3 Sawn Timber Capacity 2.7 mm m3 Sawn Timber Capacity 2.9 mm m3 Number of Mills 21 Number of Mills 42 Source: Arauco. (1) Arauco owns 50% of Europe and South Africa mills through Sonae Arauco. (2) Arauco owns 50% of Montes del Plata mill in Uruguay. 3 (3) Revenues figure corresponds to LTM September 2017. ARAUCO AT A GLANCE Angelini Consolidated Sales Assets Market Cap Family Debt 74.7% 19,579 22,310 6,607 8,777 60.82% #2 19,579 21,835 6,408 21,811 99.99% in market cap in Chile 5,128 13,873 4,203 - 62% September 2017 of Empresas Copec’s EBITDA Financial Highlights September 2017 LTM In US$ millions • SEC-registered • In the US bond market since 1995 1,271 25% EBITDA EBITDA Margin 263 486 Outlook Net Income Cash BBB (Negative) 585 2.9x BBB- (Stable) CAPEX Net Debt/ EBITDA Baa3 (Stable) 4,165 59% Debt* Debt/Equity 4 * Does not include swaps & forwards DIVERSIFIED SALES AROUND THE WORLD Others 4% North The Netherlands Asia and America 29% Canada Oceania 33% Sales by Region USA Central Mexico China Saudi Europe and South Arabia 7% America 27% Colombia Dec. 2016 Brazil Peru Australia Forestry Other Argentina 2% 1% Chile Arauco Offices Revenues Sales by Pulp Wood Division 46% 51% Over63% 5.146 5.343 5.147 5.128 Of our revenues come 4.374 4.299 4.761 from exports Sept. 2017 LTM Pulp and Wood products includes sales energy Dic 2016 2011 2012 2013 2014 2015 2016 sep-17 5 FOUR STRATEGIC BUSINESS SEGMENTS IN A DIVERSIFIED OPERATIONAL FOOTPRINT COMPLEMENTARY POWER FORESTRY PULP WOOD PRODUCTS OPERATIONS 4 Mills 7 Sawmills 10 Power Plants Plywood: 710,000 m3 4 Remanufacturing 606 MW (1) 5 Mills MDF: 515,000 m3 691,797 Ha facilities Surplus: 209 MW 2.887,000 tons HB: 60,000 m3 2,588,309 m3 PB: 300,000 m3 2 Mills 1 Sawmill 2 Power Plants 1 Mill 132,828 Ha (1) MDF: 300,000 m3 1 Remanufacturing 78 MW 350,000 tons PB: 260,000 m3 facility Surplus: 8 MW 317,982 m3 2 Mills 126,831 Ha (1) MDF: 1,220,000 m3 PB: 310,000 m3 1 Power Plant (1)(2) 1 Mill 74,717 Ha (1) 650,000 tons(2) 82 MW Surplus : 36 MW 8 Mills MDF: 1,470,000 m3 PB: 1,520,000 m3 10 Mills(3) MDF: 722,000 m3 1 Sawmill(3) PB: 1,092,000 m3 50,370m3 OSB: 243,000 m3 TOTAL 1,026,173 Ha 3.9 MM tons 8.7 MM m3 2.9 MM m3 766 MW (1) Considers hectares planted (2) Considers 50% of Montes del Plata (3) Considers 50% of Sonae Arauco 6 As of September. 2017 MAXIMIZING THE VALUE OF EVERY TREE BSKP / UKP BHKP PULP Black Licquor Black PULP MILLS Chips HEAT ENERGY & STEAM PRODUCTION MDF / HB / PBO SAW MILLS Plywood PANEL MILLS Sawn Timber Remanufactured Wood Products SAWN TIMBER & PANELS 7 WE ARE A MAIN PLAYER IN THE GLOBAL MARKET Market Pulp Capacity (in thousand of tons) Fibria Arauco 3,887 IP CMPC #2 Suzano market pulp producer APRIL in the world UPM-Kymmene Georgia Pacific Stora Enso Paper Excellence 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 World Panels Capacity (in thousand of m3) Kronospan Arauco (*) 9,466 Georgia Pacific #2 Egger Norbord panel producer in Swiss Krono the world Kastamonu LP Pfleiderer Duratex 0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 20.000 Market Pulp Capacity, December 2017. Arauco capacity includes 50% of Montes del Plata World Panels Capacity, December 2017. Arauco capacity includes 50% Sonae Arauco at Dec. 2017 Source: Hawkins Wright, Arauco estimations and Company information and filings 8 OUR MAIN PRODUCTS 44% 39% 12% 5% BHKP BSKP UKP Fluff 57% 14% 11% 10% 7% Pulp China Europe Americas Rest of Asia Korea Sales Volume: 3,883 Th. AdT & Others 60% 37% 3% MDF PBO HB/OSB /Others 56% 22% 7% 5% 10% Panels* USA & Canada Brazil Arg. Chile Others Sales Volume: 4,786 Th. m3 33% 31% 19% 15% 2% Kilned Sawn Timber Sawn Timber Plywood Remanufactured Others Wood Products 34% 30% 15% 9% 8% 4% Sawn Timber Asia & Oceania North America Rest of Middle Europe Sales Volume: 3,036 Th. m3 Chile Latam East & Africa September 2017 LTM *Does not include sales volume of Sonae Arauco as it does not consolidate 9 OPERATIONAL EFFICIENCY Bioenergy generation Logistics advantage Centralized strategic & self sufficiency in sourcing electricity Access to low-cost Lean wood management Economies of Research & scale Development 10 SOLID CAPITAL STRUCTURE Other Adjusted EBITDA -6% Forestry 30% 24% 25% 25% Adjusted EBITDA 20% 22% 22% Margin 18% 1.308 1.272 1.282 1.271 EBITDA 1.143 1.052 by Division Pulp 862 Wood 57% 31% 2011 2012 2013 2014 2015 2016 Sep 2017 LTM CAPEX Net Debt 4,6x 3,8x 3,7x 3,2x 3,0x 2,9x 2,1x 1.369 1.165 4.474 4.359 4.107 3.805 3.889 3.679 865 2.897 614 665 469 585 2011 2012 2013 2014 2015 2016 Sep 2017 2011 2012 2013 2014 2015 2016 Sep 2017 LTM LTM 11 Arauco Overview Business Segments Future Investments Recent Events and Initiatives Sustainability 12 FORESTRY: THE BASE FOR GROWTH 21+ years 13% 0-5 years 1,731 th. hectares owned 25% 16-20 years 1,026 th. hectares 20% planted Pine Plantation Aging 695 th. hectares of Pine 11-15 years 6-10 years 20% 23% Sep.2017 Dec. 2016 Total Plantations 66 Th 1.025 Hectares Planted 63 Th 619,0 32 Th Hectares Harvested 16Th 2001 2003 2005 2007 2009 2011 2013 2015 2000 2002 2004 2006 2008 2010 2012 2014 2016 Dec. 2016 In thousands ha. Includes plantations in Chile, Argentina, Brazil and Uruguay 13 PULP: OUR PULP MILLS Licancel 155,000 tons UKP Alto Paraná 350,000 tons BSKP & Fluff Constitución Swing mill 355,000 tons UKP Arauco Mill Line 1 & Line 2 290,000 tons BHKP 510,000 tons BSKP Nueva Aldea 513,500 tons BHKP 513,500 tons BSKP Montes del Plata Valdivia 1,300,000 tons BHKP 550,000 tons Arauco owns 50% Bleached pulp Swing mill 14 PULP: COMPETITIVE ADVANTAGES TO EFFICIENTLY SUPPLY THE MARKETS Pulp Production CAGR1: 5.8% in million of AdT Sep 2017 LTM 3,5 2016 Balance 2015 2014 between short 2013 and long fiber 2012 2012 2011 2010 2009 2008 2007 2006 Competitive distances 2005 from forest to mills and Cost efficient 2004 2003 ports 2002 2001 1,5 BSKP (Pine) UKP (Pine) BHKP (Eucalyptus) 92% Of pulp sales come from exports Dec. 2016 (1) Compounded Annual Growth rate 15 PULP: COMPETITIVE ADVANTAGES Balance between short and long fiber Cost efficient 550 East Canada Japan Coastal BC Canada Int. West Canada 500 Finland US Other Europe US HARDWOOD 450 Japan Bel/France China Sweden (37%) Sweden ADt Other World BSKP , CIF China 400 Canada Chile East Europe US$/ 41% Cost Iberia Capacity by Grade Finland East Europe 350 Chile/Uruguay Sep 2017 Cash 3,887 Th. ADt Indonesia 300 Brazil 250 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 Fluff SOFTWOOD Annual capacity (000s ADt) 9% UKP 13% (63%) Source: Hawkins Wright, December 2016 BSKP BHKP 16 PULP: COMPETITIVE ADVANTAGES Competitive distances from forest to mills and ports Average Distance Average Distance Forest to Mill Mill to Port* Kms Kms Nueva Aldea 63 Chile 85 Arauco 35 Uruguay 282 Valdivia 301 123 km. (weighted Constitución Argentina 80 316 average) Licancel 420 Montes del Plata 0 *Does not include distance in Argentina since pulp sales are mainly inland. Weighted average distance between our pulp mills located in Chile, Uruguay & Argentina. November 2015 17 PULP: NEW PROJECTS & ADDITIONAL CAPACITY 2017 2018 2019 APP OKI 1,700 th. tons HW Metsa Aanekoski 800 th. tons SW Fibria Tres Lagoas 1,950 th. tons HW Additional Capacity Forecast in th. tons 2017 2018 2019 2020 2021 SW 1,065 900 320 -400 -80 HW 1,195 2,040 240 130 85 Source: Hawkin Wright, December 2017 Additional Capacity Forecast takes into account additions and closings of mills 18 WOOD PRODUCTS: EXPANSIVE OF DIVERSIFIED PRODUCT MIX Panels Production CAGR1: 23.7% Sawn Timber Production CAGR1: 5.6% In thousands cubic meters In thousands cubic meters Sep 2017 LTM 6,447 Sep 2017 LTM 13,207 2016 2016 2015 2015 2014 2014 2013 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008 2008 2007 2007 2006 2006 2005 2005 2004 2004 2003 2003 2002 2002 2001 215 2001 1,342 - 1000,0 2000,0 3000,0 4000,0 5000,0 6000,0 Sawn Timber Remanufactured Plywood MDF HB PBO OSB Sep 2017 LTM (1) Compounded Annual Growth rate 19 WOOD PRODUCTS: OUR PANEL MILLS Nettgau* Sault Ste.