# EDGAR Filing Document

**Accession Number:** 0001004156
**File Stem:** 0001575872-26-000150
**Filing Date:** 2026-3
**Character Count:** 916863
**Document Hash:** 31b5967b5b26f81c5150e39fc536e504
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001575872-26-000150.hdr.sgml**: 20260320

**ACCESSION NUMBER**: 0001575872-26-000150

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 193

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260320

**DATE AS OF CHANGE**: 20260320

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ARAUCO & CONSTITUTION PULP INC
- **CENTRAL INDEX KEY:** 0001004156
- **STANDARD INDUSTRIAL CLASSIFICATION:** PULP MILLS [2611]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** X1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 033-99720
- **FILM NUMBER:** 26779071

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** EL GOLF NO 150
- **STREET 2:** 14TH FL.
- **CITY:** SANTIAGO
- **PROVINCE COUNTRY:** F3
- **BUSINESS PHONE:** 5626981961

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** EL GOLF NO 150
- **STREET 2:** 14TH FL
- **CITY:** SANTIAGO
- **PROVINCE COUNTRY:** F3
- **ZIP:** 00000

?xml version='1.0' encoding='ASCII'? ARAUCO & CONSTITUTION PULP INC

**As filed with the Securities and Exchange Commission on March 20, 2026**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 20-F**

---

| | |
|:---|:---|
| ◻<br>| **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>|

---

**OR**

⌧ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended December 31, 2025**

**OR**

---

| | |
|:---|:---|
| ◻<br>| **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>|

---

**For the transition period from __________________ to __________________.**

**OR**

---

| | |
|:---|:---|
| ◻<br>| **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>|

---

**Date of event requiring this shell company report __________________.**

**Commission File Number: 33-99720**

**CELULOSA ARAUCO Y CONSTITUCIÓN S.A.**

**(Exact name of Registrant as specified in its charter)**

**Arauco and Constitution Pulp Inc.**

**(Translation of Registrant's name into English)**

**Republic of Chile**

**(Jurisdiction of incorporation or organization)**

**Avenida El Golf 150**

**14th Floor**

**7550107 Las Condes, Santiago Chile**

**(Address of principal executive offices)**

**Gianfranco Truffello**

**Tel.: 56-2-2461-7200**

**E-mail: gianfranco.truffello@arauco.com**

**Avenida El Golf 150**

**14th Floor**

**7550107 Las Condes, Santiago Chile**

**(Name, telephone, e-mail and/or facsimile number and address of company contact person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class**<br>| **Trading Symbol**<br>| **Name of each exchange on which**<br>**registered**<br>|
| **None** <br>| **N/A** <br>| **N/A** <br>|

---

**Securities registered or to be registered pursuant to Section 12(g) of the Act: None**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:**

**Title of each class:** 

**3.875% Notes due 2027**

**5.500% Notes due 2047**

**Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: Shares of Common Stock, without par value: 131,893,786**

**Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes** ◻ **No** ⌧

**If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.** 

Yes ◻

No ⌧

**Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.** 

Yes ⌧

No ◻

**Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).** 

Yes ⌧

No ◻

**Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):**

---

| | | | |
|:---|:---|:---|:---|
| **Large Accelerated Filer** <br>| ◻<br>| **Accelerated Filer** <br>| ◻<br>|
| **Non-Accelerated Filer**<br>| ⌧<br>| **Emerging Growth Company**<br>| ◻<br>|

---

**If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.** ◻

**† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.**

**Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.** ◻

**If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.** ◻

**Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).** ◻

**Indicate by check mark which basis of accounting the registrant has used to prepare the financial statement included in this filing:**

---

| | | |
|:---|:---|:---|
| **U.S. GAAP** ◻<br>| **International Financial Reporting Standards as issued** <br>**by the International Accounting Standards Board** ⌧<br>| **Other** ◻<br>|

---

**If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: Item 17** ◻ **Item 18** ◻

**If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes** ◻ **No** ⌧

**(Applicable only to issuers involved in bankruptcy proceedings during the past five years)**

**Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes** ◻ **No** ◻

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [Item 1. Identity of Directors, Senior Management and Advisers](#a_007_item1identityof) | [5](#a_007_item1identityof) |
| [Item 2. Offer Statistics and Expected Timetable](#a_008_item2offerstati) | [5](#a_008_item2offerstati) |
| [Item 3. Key Information](#a_009_item3keyinforma) | [5](#a_009_item3keyinforma) |
| [Item 4. Information on our Company](#a_010_item4informatio) | [27](#a_010_item4informatio) |
| [Item 5. Operating and Financial Review and Prospects](#a_011_item5operatinga) | [61](#a_011_item5operatinga) |
| [Item 6. Directors, Senior Management and Employees](#a_001_item6directorss) | [79](#a_001_item6directorss) |
| [Item 7. Major Shareholders and Related Party Transactions](#a_002_item7majorshare) | [86](#a_002_item7majorshare) |
| [Item 8. Financial Information](#a_001_item8financiali) | [87](#a_001_item8financiali) |
| [Item 9. The Offer and Listing](#a_014_item9theofferan) | [90](#a_014_item9theofferan) |
| [Item 10. Additional Information](#a_015_item10additiona) | [91](#a_015_item10additiona) |
| [Item 11. Quantitative and Qualitative Disclosures About Market Risk](#a_013_item11quantitat) | [100](#a_013_item11quantitat) |
| [Item 12. Description of Securities Other than Equity Securities](#a_014_item12descripti) | [101](#a_014_item12descripti) |
| [Item 13. Defaults, Dividend Arrearages and Delinquencies](#a_015_item13defaultsd) | [101](#a_015_item13defaultsd) |
| [Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds](#a_016_item14materialm) | [101](#a_016_item14materialm) |
| [Item 15. Controls and Procedures](#a_017_item15controlsa) | [102](#a_017_item15controlsa) |
| [Item 16A. Audit Committee Financial Expert](#a_018_item16aauditcom) | [102](#a_018_item16aauditcom) |
| [Item 16B. Code of Ethics](#a_019_item16bcodeofet) | [103](#a_019_item16bcodeofet) |
| [Item 16C. Principal Accountant Fees and Services](#a_030_item16cprincipa) | [103](#a_030_item16cprincipa) |
| [Item 16D. Exemptions from the Listing Standards for Audit Committees](#a_020_item16dexemptio) | [104](#a_020_item16dexemptio) |
| [Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers](#a_021_item16epurchase) | [104](#a_021_item16epurchase) |
| [Item 16F. Change in Registrant's Certifying Accountant](#a_022_item16fchangein) | [104](#a_022_item16fchangein) |
| [Item 16G. Corporate Governance](#a_031_item16gcorporat) | [104](#a_031_item16gcorporat) |
| [Item 16H. Mine Safety Disclosures](#a_032_item16hminesafe) | [104](#a_032_item16hminesafe) |
| [Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#a_033_item16idisclosu) | [104](#a_033_item16idisclosu) |
| [Item 16J. Insider Trading Policies](#a_025_item16jinsidert) | [104](#a_025_item16jinsidert) |
| [Item 16K. Cybersecurity](#a_026_item16kcybersec) | [105](#a_026_item16kcybersec) |
| [Item 17. Financial Statements](#a_027_item17financial) | [107](#a_027_item17financial) |
| [Item 18. Financial Statements](#a_028_item18financial) | [107](#a_028_item18financial) |
| [Item 19. Exhibits](#a_029_item19exhibits) | [107](#a_029_item19exhibits) |

---

**CERTAIN TERMS AND CONVENTIONS**

Celulosa Arauco y Constitución S.A. is a *sociedad anónima* (corporation) organized under the laws of the Republic of Chile, and subject to certain rules applicable to *sociedades anónimas abiertas* (Chilean public corporations). Except where otherwise specified or the context otherwise requires, when we refer to the "Company," "Arauco," "we," "our" or "us" in this annual report, we mean Celulosa Arauco y Constitución S.A. and its consolidated subsidiaries. When we refer to "Chile," we mean the Republic of Chile; when we refer to "Argentina," we mean the Argentine Republic; when we refer to "Brazil," we mean the Federative Republic of Brazil; when we refer to "the U.S.," "U.S.A.," or "the United States," we mean the United States of America; when we refer to "Uruguay," we mean the Oriental Republic of Uruguay; and when we refer to "Mexico," we mean the United Mexican States.

All references to "tonnes" or "tons" are to metric tons (1,000 kilograms), which equals 2,204.7 pounds. One "hectare" equals 10,000 square meters or 2.471 acres. Discrepancies in any table between totals and the sums of the amounts listed may be due to rounding.

Unless otherwise specified, all references to "$," "U.S.$," "U.S. dollars" or "dollars" are to United States dollars; references to "Chilean pesos" or "Ch$" are to Chilean pesos; references to "Argentine pesos" or "AR$" are to Argentine pesos; references to "UYU" are to Uruguayan pesos; references to "Brazilian reais," "Brazilian reals" or "R$" are to Brazilian reais; references to "Mexican pesos" or "MXN$" are to Mexican pesos; references to "€," "EUR" or "euro" are to the euro, the single European currency established pursuant to the European Economic and Monetary Union; and references to "UF" are to *Unidades de Fomento*. The UF is a unit of account that is linked to, and adjusted daily to reflect changes in the Chilean consumer price index Reported by the *Instituto Nacional de Estadísticas* (Chilean National Institute of Statistics). As of December 31, 2025, one UF equaled U.S.$43.80 and Ch$39,727.96.

Regarding our pulp business, references to "hardwood" kraft pulp are to pulp made from eucalyptus or short fiber, and references to "softwood" kraft pulp are to pulp made from pine or long fiber.

PRESENTATION OF FINANCIAL AND OTHER DATA

This report includes the audited consolidated statement of financial position of Arauco and our subsidiaries as of December 31, 2025 and 2024 and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years for the period ended December 31, 2025 (collectively, the "audited consolidated financial statements" or "financial statements"). In addition, this report includes selected financial information as of and for the periods ended December 31, 2021, 2022, 2023, 2024 and 2025.

We make statements in this report about the pulp market partly on the basis of information from third-party sources. This information is principally sourced from reports published by Hawkins Wright Ltd. and Resource Information Systems Inc. ("Fastmarkets RISI"), which are specialized consultants in the pulp market, and other data providers.

For your convenience, this annual report contains certain translations of Chilean peso amounts into U.S. dollars at specified rates. Unless otherwise indicated, the U.S. dollar equivalent for information in Chilean pesos is based on the observed exchange rate reported by Banco Central de Chile, which we refer to as the "Central Bank of Chile" or the "Central Bank." The Federal Reserve Bank of New York does not report a noon buying rate for Chilean pesos. On December 31, 2025, the observed exchange rate for Chilean pesos, as published in the website of the *Diario Oficial de la República de Chile* (the "Official Gazette") on January 2, 2026, was Ch$907.13 to U.S.$1.00, and on March 11, 2026, the observed exchange rate was Ch$895.86 to U.S.$1.00, as published in the website of the Official Gazette on March 12, 2026. You should not construe these translations as representations that the Chilean peso amounts actually represent such dollar amounts or could be converted into U.S. dollars at the rates indicated or at any other rate. Unless otherwise specified, references to the devaluation or the appreciation of the Chilean peso against the U.S. dollar are in nominal terms (without adjusting for inflation) based on the observed exchange rates published by the Central Bank of Chile for the relevant period.

**FORWARD-LOOKING STATEMENTS**

This annual report on Form 20-F contains words such as "believe," "expect," "anticipate" and similar expressions that identify forward-looking statements, which reflect our views about future events and financial performance. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Such statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the United States Private Securities Litigation Reform Act of 1995, as amended.

Forward-looking statements involve inherent risks and uncertainties. These forward-looking statements are based on current plans, estimates and projections; therefore, readers should not place undue reliance on them. Actual results could differ materially from those projected in such forward-looking statements because of various factors that may be beyond our control, including but not limited to our ability to service our debt, fund our working capital requirements, comply with financial covenants in certain of our debt instruments, fund and implement our capital expenditure programs and maintain our relationships with customers, as well as the effects on us from competition, the uncertain future relationship between countries with respect to trade policies, taxes, government regulations, and tariffs, future worldwide demand for forestry and wood products we produce in the different countries in which we have industrial operations, international prices for forestry and sawn timber products, the condition of our forests, possible shortages of energy, including electricity, the state of the economies in the main countries in which we operate and the world economy generally, the effects of a pandemic or epidemic and any subsequent mandatory regulatory restrictions or containment measures, the relative value of the local currencies in the countries we run manufacturing operations compared to other currencies, inflation, increases in interest rates, the effects of earthquakes, floods, tsunamis, forest fires or other catastrophic events, geopolitical risks and changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities. Forward-looking statements in this annual report speak only as of their dates, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

**PART I** 

**Item 1. Identity of Directors, Senior Management and Advisers**

Not applicable.

**Item 2. Offer Statistics and Expected Timetable**

Not applicable.

**Item 3. Key Information**

**SELECTED CONSOLIDATED FINANCIAL DATA**

The selected consolidated financial information as of December 31, 2021, 2022, 2023, 2024 and 2025 and for each of the five years then ended is derived from, should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements which have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") ("IFRS Accounting Standards").

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As <br>of <br>and <br>for <br>the <br>year <br>ended <br>December <br>31,** | **As <br>of <br>and <br>for <br>the <br>year <br>ended <br>December <br>31,** | **As <br>of <br>and <br>for <br>the <br>year <br>ended <br>December <br>31,** | **As <br>of <br>and <br>for <br>the <br>year <br>ended <br>December <br>31,** | **As <br>of <br>and <br>for <br>the <br>year <br>ended <br>December <br>31,** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** |
|  | (in <br>thousands <br>of <br>U.S. <br>dollars, <br>except <br>ratios <br>and <br>share <br>data) | (in <br>thousands <br>of <br>U.S. <br>dollars, <br>except <br>ratios <br>and <br>share <br>data) | (in <br>thousands <br>of <br>U.S. <br>dollars, <br>except <br>ratios <br>and <br>share <br>data) | (in <br>thousands <br>of <br>U.S. <br>dollars, <br>except <br>ratios <br>and <br>share <br>data) | (in <br>thousands <br>of <br>U.S. <br>dollars, <br>except <br>ratios <br>and <br>share <br>data) |
| **INCOME <br>STATEMENT DATA**<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue<br>| 6084142 | 6546146<br>| 6011819<br>| 7102070<br>| 6349761<br>|
| &nbsp;&nbsp;&nbsp;Cost <br>of <br>sales<br>| (4546861) | (4634149) | (4744095) | (4274496) | (3681603) |
| &nbsp;&nbsp;&nbsp;**Gross <br>profit (loss)**<br>| 1537281 | **1911997**<br>| **1267724** <br>| **2827574** <br>| **2668158** <br>|
| &nbsp;&nbsp;&nbsp;Other <br>income<br>| 324023 | 597061<br>| 573017<br>| 100129<br>| 378977<br>|
| &nbsp;&nbsp;&nbsp;Distribution <br>costs<br>| (677734) | (695377) | (693039) | (922226) | (682996) |
| &nbsp;&nbsp;&nbsp;Administrative <br>expenses<br>| (560830) | (565027) | (624326) | (613608) | (577147) |
| &nbsp;&nbsp;&nbsp;Other <br>expense by function<br>| (130280) | (212213) | (480336) | (373889) | (192101) |
| &nbsp;&nbsp;&nbsp;**Profit (loss) from operating activities**<br>| 492460 | **1036441**<br>| **43040**<br>| **1017980**<br>| **1594891**<br>|
| &nbsp;&nbsp;&nbsp;Finance <br>income<br>| 62560 | 66355<br>| 131666<br>| 72116<br>| 33499<br>|
| &nbsp;&nbsp;&nbsp;Finance <br>costs<br>| (409724) | (397923) | (373496) | (200366) | (219982) |
| &nbsp;&nbsp;&nbsp;Share <br>of <br>profit <br>(loss) <br>of <br>associates <br>and <br>joint <br>ventures <br>accounted <br>for <br>using <br>equity <br>method<br>| (3865) | (45792) | 7709<br>| 33684<br>| 31386<br>|
| &nbsp;&nbsp;&nbsp;Gains (losses) on exchange differences on translation<br>| (60748) | (12400) | (194739) | (77067) | (5281) |
| &nbsp;&nbsp;&nbsp;**Profit <br>(loss) <br>before <br>income <br>tax**<br>| 80683 | **646681**<br>| **(385820)**  | **846347** <br>| **1434513** <br>|
| &nbsp;&nbsp;&nbsp;Income tax (expense) <br>benefit<br>| (39804) | (170400) | 27293<br>| (142121) | (402914) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net <br>profit <br>(loss)**<br>| 40879 | **476281**<br>| **(358527)**  | **704226** <br>| **1031599** <br>|
| **BALANCE <br>SHEET <br>DATA**<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total current <br>assets<br>| 4393731 | 4274618<br>| 4175578<br>| 3774921<br>| 3924325<br>|
| &nbsp;&nbsp;&nbsp;Property, plant and equipment<br>| 11124813 | 9610071<br>| 9607116<br>| 9542335<br>| 8955666<br>|
| &nbsp;&nbsp;&nbsp;Right of use of assets<br>| 1003718 | 771886<br>| 600361<br>| 306487<br>| 180106<br>|
| &nbsp;&nbsp;&nbsp;Biological <br>assets <br>(1)<br>| 3337937 | 3063394<br>| 3022579<br>| 3195370<br>| 3008897<br>|
| &nbsp;&nbsp;&nbsp;Total <br>assets<br>| 21304763 | 18159312<br>| 17910364<br>| 17180108<br>| 16668311<br>|
| &nbsp;&nbsp;&nbsp;Total <br>current liabilities<br>| 1931575 | 1362950<br>| 2071742<br>| 1526284<br>| 1429642<br>|
| &nbsp;&nbsp;&nbsp;Total <br>non-current liabilities<br>| 9689710 | 8072647<br>| 7829593<br>| 7393840<br>| 7413164<br>|
| &nbsp;&nbsp;&nbsp;Issued <br>capital<br>| 1553618 | 1103618<br>| 803618<br>| 803618<br>| 803618<br>|
| &nbsp;&nbsp;&nbsp;Total <br>equity<br>| 9683478 | 8723715<br>| 8009029<br>| 8259984<br>| 7818504<br>|
| **CASH <br>FLOW <br>DATA**<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash <br>flow <br>from <br>(used <br>in) <br>operating <br>activities<br>| 1046814 | 1181317<br>| 740427<br>| 1700492<br>| 1939331<br>|
| &nbsp;&nbsp;&nbsp;Cash <br>flow <br>from <br>(used <br>in) <br>investing <br>activities<br>| (2431025) | (328973) | (1333124) | (1469976) | (1136231) |
| &nbsp;&nbsp;&nbsp;Cash <br>flow <br>from <br>(used <br>in) <br>financing <br>activities<br>| 1556453 | (305948) | 645667<br>| (527219) | (822241) |
| &nbsp;&nbsp;&nbsp;Net increase <br>(decrease) <br>in <br>cash <br>and <br>equivalents <br>before <br>effect <br>of <br>exchange <br>rate <br>changes<br>| 172242 | 546396<br>| 52970<br>| (296703) | (19141) |
| **OTHER <br>FINANCIAL <br>DATA**<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital <br>expenditures <br>(2)<br>| 2444671 | 1228893<br>| 1263049<br>| 1578202<br>| 1542715<br>|
| &nbsp;&nbsp;&nbsp;Depreciation <br>and <br>amortization<br>| 688048 | 685951<br>| 661068<br>| 507029<br>| 492704<br>|
| &nbsp;&nbsp;&nbsp;Fair <br>value <br>cost <br>of <br>timber <br>harvested<br>| 330199 | 440513<br>| 487778<br>| 431845<br>| 342701<br>|
| &nbsp;&nbsp;&nbsp;EBIT <br>(3) (4)<br>| 427847 | 978249<br>| (143990) | 974597<br>| 1620996<br>|
| &nbsp;&nbsp;&nbsp;Adjusted <br>EBITDA <br>(3) (4)<br>| 1331414 | 2014110<br>| 1025977<br>| 2166820<br>| 2493370<br>|
| &nbsp;&nbsp;&nbsp;Adjusted <br>EBITDA <br>(3)/finance <br>costs <br>(4)<br>| 3.25 | 5.06<br>| 2.75<br>| 10.81<br>| 11.33<br>|
| &nbsp;&nbsp;&nbsp;Adjusted <br>EBITDA <br>(3)/revenue <br>(4)<br>| 21.9% | 30.8%<br>| 17.1%<br>| 30.5%<br>| 39.3%<br>|
| &nbsp;&nbsp;&nbsp;Average <br>debt (5)/Adjusted <br>EBITDA <br>(3) (4)<br>| 5.70 | 3.39<br>| 6.23<br>| 2.61<br>| 2.36<br>|
| &nbsp;&nbsp;&nbsp;Total <br>debt <br>(6)<br>| 8573780 | 6596689<br>| 7055471<br>| 5718360<br>| 5581293<br>|
| &nbsp;&nbsp;&nbsp;Total <br>debt <br>(6)/capitalization <br>(7) (4)<br>| 47.0% | 43.1%<br>| 46.8%<br>| 40.9%<br>| 41.7%<br>|
| &nbsp;&nbsp;&nbsp;Total <br>debt <br>(6)/equity <br>attributable <br>to <br>parent <br>company <br>(4)<br>| 88.6% | 75.7%<br>| 88.2%<br>| 69.3%<br>| 71.5%<br>|
| &nbsp;&nbsp;&nbsp;Working <br>capital <br>(4) (8)<br>| 2462156 | 2911668<br>| 2103836<br>| 2248637<br>| 2489683<br>|
| &nbsp;&nbsp;&nbsp;Number <br>of <br>shares<br>| 131893786 | 125042124<br>| 120474350<br>| 120474350<br>| 120474350<br>|
| &nbsp;&nbsp;&nbsp;Net <br>income <br>(loss) <br>per <br>share <br>(U.S.$per <br>share)<br>| 0.3 | 3.9<br>| (3.0) | 5.8<br>| 8.6<br>|
| &nbsp;&nbsp;&nbsp;Dividends <br>paid <br>(9)<br>| 112287 | 94397<br>| 279622<br>| 376103<br>| 471000<br>|
| &nbsp;&nbsp;&nbsp;Dividends <br>per <br>share <br>(U.S.$per <br>share)<br>| 0.90 | 0.78<br>| 2.32<br>| 3.12<br>| 3.91<br>|

---

(1) Biological assets refer to our forests (current and non- current).

(2) We calculate capital expenditures as "purchase of property, plant and equipment" plus "purchase of intangible assets", plus "purchase of other long term assets". Excludes acquisitions of companies.

(3) We calculate EBIT as "net income" before "finance costs," "finance income" and "income tax". We calculate EBITDA as EBIT, plus "depreciation and amortization".

(4) Unaudited Non-Generally Accepted Accounting Principles (non-GAAP) financial measures.

(5) We calculate average debt as the average of total debt between the beginning and the end of the applicable year.

(6) We calculate total debt as the sum of other current financial liabilities and other non-current financial liabilities, minus hedging instruments.

(7) We calculate capitalization as total debt, including accrued interest, plus total equity.

(8) We calculate working capital by subtracting current liabilities from current assets.

(9) Dividends paid corresponds to dividends paid to our shareholders during the relevant fiscal period.

We calculate adjusted EBITDA by adding "fair value cost of timber harvested," "exchange rate differences" and other expenses, and deducting "gain from changes in fair value of biological assets" to EBITDA. "Fair value cost of timber harvested" is a non-cash expense included in our cost of sales (as a component of raw materials) that represents the fair value of the wood harvested and sold from our own plantations, which is commonly excluded from the non-GAAP measures used by analysts to compare participants in our industry as it is a non-cash item (purchases of wood from third parties are cash expenses that are not included in "fair value cost of timber harvested"). "Gain from changes in fair value of biological assets" is a gain that does not represent cash flow. We believe that Adjusted EBITDA provides investors with a useful supplemental indicator of the performance of our core business because (i) it cancels out the effects of fair value that are independent of the cost efficiency of our operating facilities and (ii) it excludes the effect of exchange rate differences, which are mainly derived from our debt instruments.

In evaluating the performance of Arauco, we believe that each of these non-GAAP financial measures should be considered together with and should not be considered in isolation, or as a substitute for, the analysis of our results as reported under IFRS Accounting Standards. Some of the limitations of our non-GAAP financial measures are that EBIT, EBITDA and Adjusted EBITDA do not reflect: (i) our cash expenditures, or future requirements, for capital expenditures or contractual commitments; (ii) changes in, or cash requirements for, working capital needs; or (iii) the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our outstanding debt.

Because not all companies calculate EBIT, EBITDA or Adjusted EBITDA in the same manner, such measures calculated by us may differ from such measures calculated by other companies. We compensate for these limitations by using EBIT, EBITDA and Adjusted EBITDA as supplemental measures to monitor our performance and by relying primarily on our financial statements that have been prepared in accordance with IFRS Accounting Standards.

The following table presents, for the periods indicated, a reconciliation of unaudited non-GAAP financial measures EBIT, EBITDA and Adjusted EBITDA to net income.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of and for the year ended December 31,** | **As of and for the year ended December 31,** | **As of and for the year ended December 31,** | **As of and for the year ended December 31,** | **As of and for the year ended December 31,** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** |
|  | (in thousands of U.S. dollars, except ratios and share data) | (in thousands of U.S. dollars, except ratios and share data) | (in thousands of U.S. dollars, except ratios and share data) | (in thousands of U.S. dollars, except ratios and share data) | (in thousands of U.S. dollars, except ratios and share data) |
| **Net profit (loss)**  | 40879 | **476281**  | **(358527)**  | **704226**  | **1031599**  |
| (+) Finance costs <br>| 409724 | 397923 | 373496 | 200366 | 219982 |
| (-) Finance income <br>| (62560) | (66355) | (131666) | (72116) | (33499) |
| (+) Income tax expense<br>| 39804 | 170400 | (27293) | 142121 | 402914 |
| **EBIT** <br>| 427847 | 978249 | **(143990)**  | **974597**  | **1620996**  |
| (+) Depreciation and amortization(\*) <br>| 688048 | 685951 | 661068 | 507029 | 492704 |
| **EBITDA** <br>| 1115895 | 1664200 | **517078**  | **1481626**  | **2113700**  |
| (+) Cost at fair value of the harvest<br>| 330199 | 440513 | 487778 | 431845 | 342701 |
| (-) Gain from changes in fair value of biological assets <br>| (204646) | (159021) | (264477) | (12932) | (81986) |
| (+) Gains (losses) on exchange difference in translation<br>| 60748 | 12400 | 194739 | 77067 | 5281 |
| (+) Others(\*\*) <br>| 29218 | 56018 | 90858 | 189214 | 113674 |
| **Adjusted EBITDA** <br>| 1331414 | **2014110**  | **1025976**  | **2166820**  | **2493370**  |

---

(\*) See Note 7 and Note 19 of our audited consolidated financial statements for more detail on depreciation and amortization.

(\*\*) Reflects other non-cash expenses, such as loss of forest due to fires, theft and impairment provisions of industrial property, plant and equipment.

A. **Reserved** 

B. **Capitalization and indebtedness** 

Not applicable.

C. **Reasons for the Offer and Use of Proceeds** 

Not applicable.

D. **Risk Factors** 

**Summary of Risk Factors**

We are subject to a number of risks related to our business that are described under "Risk Factors" and elsewhere in this annual report. These risks could materially and adversely impact our business, results of operations, financial condition and future prospects. Among these important risks are the following:

**Risks Relating to the Company**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Fluctuations in market price for our products could adversely affect our financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Worldwide competition in the markets for our products may adversely affect our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Global economic and other developments, and particularly economic developments in the Asian, European and U.S. economies, could have an adverse effect on the demand for our products, our financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We depend on free international trade as well as economic and other conditions in our principal markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Changes in international trade and other related policies may adversely impact our business, financial condition, and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In Chile and in Mexico, we are located in seismic areas that expose our properties to the risk of earthquakes and in Chile, such exposure also includes the risk of tsunamis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Compliance with environmental laws and other regulations, and liabilities arising thereunder, have in the past resulted in, and may in the future result in, costs that could adversely affect our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Environmental concerns led to the temporary suspension of our operations at the Valdivia mill in 2005, which adversely affected, and in the future may continue to adversely affect, our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have been and currently are subject to legal proceedings related to some of our operations which could adversely affect our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to access local and international credit or capital markets may be restricted at a time when we need financing, which could have a material adverse effect on our flexibility to react to changing economic and business conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Material disruptions affecting our manufacturing mills, remanufacturing facilities, forestry assets or commercial operations could negatively impact our financial results and forestry operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Currency fluctuations could have a negative effect on our financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disease or fires could affect our forests and manufacturing processes and, in turn, adversely affect our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Climate change may increase the frequency and severity of extreme weather events and other natural hazards, which could disrupt our operations .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Evaluation and implementations of mergers, acquisitions and investments to expand or complement our operations could result in operating difficulties or otherwise adversely affect our business, financial conditions and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Labor action, contractual and other disputes could adversely affect our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Cybersecurity events, such as a cyberattack, could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may face difficulties in implementing our investment projects, which could negatively impact our growth prospects.

**Risks Relating to Chile**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Adverse changes in Chile's political, legal, tax, social and economic conditions could directly impact our business and the market price of our securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Chile has different corporate disclosure standards from those with which you may be familiar in the United States, and Chile's securities laws may not afford you the same protections as U.S. securities laws.

**Risks Relating to the United States and Canada**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Economic conditions in the United States and Canada may have a direct impact on our business, financial condition, results of operations and cash flows.

**Risks Relating to Brazil**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Economic conditions and government policies in Brazil may have a direct impact on our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Brazilian government has exercised significant influence over the Brazilian economy. Brazilian political and economic conditions have a direct impact on our business.

**Risks Relating to Argentina**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Economic conditions and government policies in Argentina may have a direct impact on our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Argentine government has exercised significant influence over the Argentine economy. Argentine political and economic conditions have a direct impact on our business.

**Risks Relating to Mexico**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Economic and social conditions and government policies in Mexico may have a direct impact on our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Mexican government has exercised significant influence over the Mexican economy. Mexican political and economic conditions have a direct impact on our business.

**Risks Relating to Uruguay**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Economic conditions and government policies in Uruguay may have a direct impact on our financial condition, results of operations and cash flows.

**Risks Relating to Other Markets**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our business, earnings and prospects may be adversely affected by developments in other countries that are beyond our control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Developments in other emerging and developed markets may adversely affect the market price of our securities and our ability to raise additional financing.

**Risks Relating to Our Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The non-payment of funds by our subsidiaries could have a material adverse effect on our business, financial condition, results of operations and ability to service our debt, including our securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Changes in Chilean tax laws could lead us to redeem our securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Credit rating downgrades below investment grade could have a material and adverse effect on our business, financial condition, results of operations and ability to service our debt, including our securities.

As a result of these risks and other risks described under "Risk Factors" there is no guarantee that we will experience growth or profitability in the future.

**DETAILED RISK FACTORS**

*We are subject to various changing economic, political, social and competitive conditions, particularly in our principal markets. Any of the following risks, if they actually occur, could materially and adversely affect our business, financial condition, results of operations and cash flows.*

**Risks Relating to the Company**

**Fluctuations in market price for our products could adversely affect our financial condition, results of operations and cash flows.**

Prices for many of the products we sell can fluctuate significantly. The prices of our products are highly correlated with international prices. Consequently, prices of our products are highly dependent on prevailing international and regional prices.

The following table sets forth historic price fluctuations for bleached hardwood kraft pulp sold in China (pulp made from eucalyptus or birch which is sold in China or "BHKP – China") which is the benchmark for bleached hardwood pulp sold in China, for bleached hardwood kraft pulp sold in Europe (pulp made from eucalyptus or birch which is sold in Europe or "BHKP – Europe") which is the benchmark for bleached hardwood pulp sold in Europe, for Norscan bleached softwood kraft market pulp sold in China (pulp produced in North American, Nordic and Central European countries and sold to manufacturers of paper products delivered in China, or "NBSK – China") which is the benchmark for bleached softwood pulp sold in China and for Norscan bleached softwood kraft market pulp sold in Europe (pulp produced in North American, Nordic and Central European countries and sold to manufacturers of paper products delivered in Northern Europe, or "NBSK – Europe") which is the benchmark for bleached softwood pulp sold in Europe, for each of the years indicated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| <br>**NBSK**<br>| **2021** | **2022** | **2023** | **2024** | **2025** |
| **Europe**<br>|  |  |  |  |  |
| Minimum Price<br>| 879.79 | 1260.00 | 1145.88 | 1248.25 | 1480.24 |
| Maximum Price<br>| 1340.00 | 1498.06 | 1429.58 | 1626.51 | 1598.97 |
| Year-end Price<br>| 1260.67 | 1429.03 | 1242.99 | 1481.62 | 1498.31 |
| **China**<br>|  |  |  |  |  |
| Minimum Price<br>| 672.88 | 762.12 | 650.10 | 732.89 | 657.41 |
| Maximum Price<br>| 985.23 | 989.69 | 910.07 | 820.22 | 804.63 |
| Year-end Price<br>| 755.05 | 884.99 | 749.25 | 771.66 | 692.26 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **BHKP**<br>| **2021** | **2022** | **2023** | **2024** | **2025** |
| **Europe**<br>|  |  |  |  |  |
| Minimum Price<br>| 680.00 | 1140.00 | 800.00 | 1000.00 | 1000.00 |
| Maximum Price<br>| 1140.00 | 1380.00 | 1379.97 | 1439.98 | 1217.68 |
| Year-end Price<br>| 1140.00 | 1380.00 | 1007.96 | 1000.00 | 1100.00 |
| **China**<br>|  |  |  |  |  |
| Minimum Price<br>| 500.46 | 588.18 | 474.65 | 545.32 | 493.32 |
| Maximum Price<br>| 780.09 | 866.17 | 810.07 | 741.89 | 600.80 |
| Year-end Price<br>| 576.42 | 827.59 | 653.35 | 545.39 | 562.03 |

---

\* Source: Fastmarkets RISI, Prices in U.S. dollars.

*Hardwood Pulp.* 

During the first quarter of 2021, prices of both BHKP – Europe and BHKP – China started steadily increasing, mostly due to normalization of demand and logistic issues which constrained supply chains to a certain extent. During the second quarter of 2021, prices remained stable for BHKP – China, albeit at high levels, and continued to increase for BHKP – Europe. Prices for BHKP – Europe remained largely stable during the second half of 2021, and prices for BHKP – China decreased somewhat mostly due to a lower operating rate of paper producers and electrical outages. During the first quarter of 2022, prices increased in comparison with the last week of the fourth quarter of 2021, in both BHKP – Europe and BHKP – China, mostly due to logistical issues, strikes or work stoppage that occurred to a relevant competitor, meanwhile in Europe due to high economic activity and low levels of imports from Asia. Moreover, shortage of birch in Northern Europe caused significant pressure on short fiber which make producers switch to long fiber. During the second quarter of 2022, prices increased again due to inflation affecting the markets in both BHKP – Europe and BHKP – China. During the second half of 2022, prices of both BHKP – Europe and BHKP – China remained relatively stable due to a normalization of logistical issues and a relatively stabilization of inventories. 2023 began with price declines for both BHKP – Europe and BHKP – China, with an increase in supply due to the injection of new pulp capacity in the market towards the end of March. BHKP – China prices reached their minimum of the year yet started to stabilize by the end of the second quarter of 2023, while BHKP – Europe continued declining due to reduced demand. During the third quarter of 2023, BHKP – China prices increased due to higher demand, while BHKP – Europe began to stabilize. By the end of 2023, prices for both BHKP – China and BHKP – Europe increased, fueled by improved European demand resulting from reduced pulp inventories and narrowed price differentials with China. Throughout the first quarter of 2024, BHKP prices in China remained relatively stable and increased during the second quarter, following the European trend. In Europe, prices steadily increased during the first half of the year as demand rose, driven by logistical disruptions in the Suez Canal that impacted incoming paper product shipment. Additionally, supply constraints in long fiber prompted paper producers to replace long fiber with short fiber. In the second half of the year, BHKP prices in China began to decline, primarily due to the ramp-up of two new mills—one in China and another in Brazil—which boosted supply and exerted downward pressure on the market in both China and Europe, as supply outpaced demand. In the second half of the year, BHKP – Europe prices generally decreased, primarily driven by reduced demand due to low seasonality, but most of all due to oversupply and significant spot volume available. However, towards the end of the year, the market stabilized, with prices leveling off as demand steadied. During the first quarter of 2025, BHKP prices in both China and Europe rose, supported by seasonal demand; however, market conditions began to soften toward the end of the period, primarily as a result of tariff-related uncertainty, which prompted customers to limit purchases to immediate needs. During the second quarter, prices in both regions came under pressure due to oversupply stemming from new production capacity and lower consumption. During the third quarter, BHKP – China prices recovered toward the end of the period notwithstanding prevailing oversupply conditions, while BHKP – Europe experienced a slight demand recovery that supported a late-quarter price increase. During the fourth quarter, BHKP – China prices continued to rise, as demand remained stable and strengthened for unbleached grades, driven by restrictions on recycled pulp imports. In BHKP – Europe, price increases were implemented throughout the period.

Softwood Pulp. The first quarter of 2021 continued with the trend observed during the last weeks of 2020, with prices of both NBSK – Europe and NBSK – China steadily increasing, mostly due to normalization of demand, and logistic issues which constrained supply chains to a certain extent. During the second quarter of 2021, prices remained stable for NBSK – China, albeit at high levels, and continued to increase for NBSK – Europe. Prices for NBSK – Europe remained largely stable during the second half of 2021, and prices for NBSK – China decreased somewhat mostly due to a lower operating rate of paper producers and electrical outages. During the first quarter of 2022, prices increased in comparison with the last week of the fourth quarter of 2021, in both NBSK – Europe and NBSK – China, mostly due to logistical issues and also in Europe, due to high economic activity and low levels of imports from Asia. During the second quarter of 2022, prices increased again due to inflation affecting the markets in both NBSK – Europe and NBSK – China. During the third quarter of 2022, prices of both NBSK – Europe and NBSK – China remained relatively stable; and at the end of the year of 2022, prices decreased due to a normalization of logistic issues and a relatively stabilization of inventories. Prices decreased considerably during the first quarter of 2023 for NBSK – Europe and NBSK – China due to high inventories and low paper production. During the second quarter of 2023, prices remained low for NBSK-China while prices for NBSK – Europe continued to decline. In the third quarter of 2023, prices for both NBSK – Europe and NBSK – China increased towards the end of the quarter until year-end, due to higher demand rates. In the first and second quarters of 2024, NBSK prices in China remained largely stable with only relevant increases during the second quarter, while in Europe, prices rose following the Chinese trend. In the third quarter of 2024, NBSK prices declined in both China and Europe, driven by higher inventories and weaker market demand, before stabilizing toward the end of the period. During the first quarter of 2025, NBSK – China prices increased modestly, while NBSK – Europe prices rose steadily. During the second quarter, NBSK – China prices declined primarily due to oversupply, while NBSK – Europe prices continued to rise through May and June before easing as consumption softened and availability increased. During the third quarter, NBSK – China prices followed a gradual downward trend amid persistent oversupply, while NBSK – Europe prices registered a progressive decline with only limited improvement, notwithstanding marginally stronger demand toward the end of the period. During the fourth quarter, Chinese demand remained generally stable, characterized by low restocking activity, with prices recovering modestly toward period-end; in NBSK – Europe, prices stabilized as producers maintained reduced operating rates in printing and writing paper grades.

*Wood Products.* 

During 2021, the wood products markets remained generally stable and at high levels both in terms of prices and sales volume. Prices for some wood products continued to increase throughout the year, and we observed some supply shortages in some of the markets we participate in. During 2022, the wood products markets' demand remained relatively stable in panel consumptions in North America. In addition, our sawn timber segment's demand was relatively stable during the first half of 2022 and a relatively restricted supply due to logistic issues. During 2023, average prices of all wood products decreased throughout the year, with panels being affected by higher interest rates, oversupply, high inventories, and political uncertainty. Sawn timber was mainly affected by slower markets throughout the year. Throughout 2024, average prices for our wood products declined, primarily due to market overcapacity, along with the effects of inflation, high interest rates, and reduced market activity. During 2025, average prices for most of our wood products increased throughout the year; however, sales volumes declined relative to the prior year. The panels segment experienced a continued decline in demand throughout the year, compounded by persistent oversupply conditions. The sawn timber segment was affected by a slow construction market and tariff-related uncertainty in some countries and oversupply in the market.

Global economic conditions may exert downward pressure on commodity prices, including the international prices of the products we sell, which could result in material and adverse declines in our revenues, results of operations and financial condition. We have no control over the factors that cause prices to change which include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· worldwide demand (which may be affected by a number of factors, including economic or political conditions around the world);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· prevailing world prices, which historically have been subject to significant fluctuations over relatively short periods of time, depending on worldwide demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· world production capacity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the availability of substitutes.

In addition, the prices of many of the products we sell are correlated to some extent, and historical fluctuations in the price of one product have usually been accompanied by similar fluctuations in the prices of other products. If the price of one or more of the products that we sell were to decline significantly from current levels, it could have a material adverse effect on our revenues, results of operations and financial condition.

**Worldwide competition in the markets for our products may adversely affect our business, financial condition, results of operations and cash flows.**

We experience substantial worldwide competition in each of our geographical markets and in each of our product lines. Some of our competitors are larger than we are or may have greater financial and other resources, which, among other things, may enhance their ability to support strategic expenditures directed to increase their market share. Our market share and competitive position may be adversely affected if we are unable to successfully continue to expand our productivity at the same pace as our competitors.

Both the pulp and wood products industries are sensitive to changes in industry capacity and producer inventories, as well as to cyclical changes in the world's economies, all of which may significantly affect selling prices and, thereby, our profitability. One or more of these factors could materially and adversely affect our business, financial condition, results of operations and cash flows.

**Global economic and other developments, and particularly economic developments in the Asian, European and U.S. economies, could have an adverse effect on the demand for our products, our financial condition, results of operations and cash flows.**

The global economy, and in particular global industrial production, is the primary driver of demand for pulp, paper and wood products. For example, our wood products segment, which is highly dependent on the strength of the home-building industry, has experienced decreases in its prices and demand for its products from time to time.

A decrease in the level of activity in either the domestic or the international markets within which we operate could adversely affect the demand and the price of our products and thus our cash flows and operational and financial results.

Our business, financial condition, results of operations and cash flows could be materially and adversely affected if the economic and other conditions in Asia, Europe, the United States and elsewhere deteriorate, and if we are unable to address competitive challenges resulting from currency fluctuations or reallocate our wood products and other products to other markets on equally beneficial terms, which could require us to recognize additional impairment charges.

In February 2022, Russian troops invaded Ukraine. The conflict has led to the imposition of sanctions by the United States, the European Union, and other countries against Russia, as well as enhanced export controls on certain products and industries. The conflict has contributed to volatility in certain commodity prices and disruptions in global supply chains. While certain acute economic effects, including elevated energy process and inflationary pressures, have moderated since the onset of the conflict, the extent and duration of the military action, applicable sanctions, and resulting market disruptions remain uncertain and could be substantial. Any such disruptions caused by this conflict or resulting sanctions may magnify the impact of other risks described in this annual report.

More recently, Houthi attacks on marine vessels in the Red Sea have disrupted an important maritime trade route, resulting in extended lead times, delays in supplier deliveries, and increased transportation costs. The conflict in the Middle East, principally between Israel and Hamas, is also a source of uncertainty. Although Israel and Hamas reached a ceasefire agreement in October 2025, the durability of such ceasefire remains uncertain, and any resumption or escalation of hostilities could cause disruption, instability and volatility in global markets and supply chains, which could in turn adversely affect our business operations and financial performance.

In addition, upsurge in violence and military exchanges involving Iran, the United States and Israel could further destabilize the Middle East region. Any direct or indirect conflict involving these countries could result in broader regional instability, additional sanctions, volatility in energy and commodity prices, disruptions to shipping routes and global supply chains, and heightened geopolitical uncertainty. Any such developments could adversely affect global economic conditions and, in turn, materially and adversely impact our business, financial condition, results of operations and cash flows.

The duration and material impact of these conflicts remain highly unpredictable and could be substantial.

**We depend on free international trade as well as economic and other conditions in our principal markets.**

We are a global company with industrial operations in eleven countries, from which we sell our products in the domestic market and through exports. In 2025, 37.6% of our sales were to customers in Asia and Oceania, 29.6% to customers in North America, 24.9% to customers in Central and South America, 6.5% to customers in Europe, and 1.4% to customers in other regions. Consequently, our results of operations and cash flows depend, to a significant degree, on economic, political and regulatory conditions in our principal markets. Our ability to compete effectively in these markets could be materially and adversely affected by a number of factors beyond our control, including deterioration in macroeconomic conditions, exchange rate volatility, government subsidies and the imposition of increased tariffs or other trade barriers. If our ability to sell our products competitively in one or more of our principal markets were impaired by any of these developments, it might be difficult to reallocate our products to other markets on equally favorable terms and our business, financial condition, results of operations and cash flows might be adversely affected.

**Changes in international trade and other related policies may adversely impact our business, financial condition, and results of operations.**

Global trade dynamics have become increasingly volatile, with several major economies—including the U.S., Canada, China, Mexico, and members of the European Union—implementing or threatening tariffs, trade restrictions, and non-tariff barriers. These actions have escalated tensions among trading partners, contributed to supply chain disruptions, and raised the risk of sustained trade conflicts and breakdowns in international dispute resolution mechanisms.

Since January 20, 2025, the U.S. administration has implemented several significant measures, such as changes in trade policies, including the imposition of new tariffs and other trade restrictions that could affect cross-border commerce.

On February 1, 2025, the U.S. government announced a 25% tariff on imports from Canada and Mexico, in addition to previously enacted tariffs on goods from China. These tariffs were initially set to take effect on March 4, 2025. However, on March 6, 2025, the U.S. government granted a one-month exemption from these tariffs for goods meeting the 2020 United States–Mexico–Canada Agreement (USMCA) rules, effectively suspending the tariffs until April 2, 2025. Later, the U.S. imposed universal tariffs on steel, aluminium, and automotive imports, including those from Mexico and Canada. In February 2026, the Supreme Court of the United Sates invalidated certain expansive tariffs. In response, the U.S. administration announced plans to temporarily increase the global baseline tariff on imports into the United States to up to 15%, replacing the previously announced 10% universal tariff on imports from most countries.

These developments are relevant to our operations as we own manufacturing facilities in Canada and Mexico that export products to the United States. The initially imposed tariffs could have led to higher costs for these exports, reducing our price competitiveness and negatively impacting our profit margins. While initial exemptions provided temporary relief, the broader tariff regime remained in flux through 2025 and continues to evolve in 2026, with continued negotiation and policy adjustments, introducing uncertainty into business planning and supply chain operations.

In response, Canada and Mexico signalled or implemented retaliatory trade measures, and similar actions may be taken by other countries affected by trade restrictions. Such countermeasures, and the potential for additional retaliatory tariffs, heighten the risk of escalation into broader trade disputes or trade wars, further increasing the cost and complexity of cross-border operations.

Furthermore, the U.S. administration continued to signal its intent to use tariffs as leverage on a wider set of trade, foreign policy, and security issues. These measures present potential risks to international trade, foreign relations, and labour markets. Increased tariffs could further disrupt supply chains and provoke retaliatory actions from key trade partners. These policies also could introduce uncertainties in regulatory frameworks and could lead to increased operational costs for businesses reliant on international trade.

Beyond North America, trade policies are increasingly being used to address broader political and economic objectives—including labor, environmental, and immigration policies—which creates additional uncertainty for companies engaged in global commerce. The effectiveness of multilateral trade institutions, such as the World Trade Organization, has also been challenged, raising concerns about the enforceability of international trade rules.

In addition, in February 2025, the U.S. Department of State designated certain Mexican drug cartels as Foreign Terrorist Organizations and Specially Designated Global Terrorists. This action may increase regulatory scrutiny, sanctions, and enforcement, heighten compliance obligations, disrupt cross-border trade, and create reputational risks for businesses operating in or connected to Mexico. It may also intensify political and economic tensions between the United States and Mexico, adversely affecting the broader business environment. The potential direct and indirect effects of such designations on businesses operating in or with Mexico remain uncertain.

There can be no assurance as to the full extent of the U.S. administration's trade policies and the countermeasures that could be applied against them, and/or their direct and indirect effects on the global economy. These changes could create additional economic and political uncertainty, which may adversely affect our business, financial condition, results of operations, and prospects.

Recent policy announcements, including proposals for broader baseline tariffs and additional sector-specific duties, indicate that U.S. trade policy may continue to evolve rapidly, which could further affect international trade flows and market conditions. See "Item 3. Key Information—Risk Factors—We depend on free international trade as well as economic and other conditions in our principal markets."

**In Chile and in Mexico, we are located in seismic areas that expose our properties to the risk of earthquakes and in Chile, such exposure also includes the risk of tsunamis.**

Our properties in Chile and in Mexico are located in seismic areas that expose our facilities, plants, equipment and inventories to the risk of earthquakes and even subsequent tsunamis in some areas. A significant earthquake or other catastrophic event could severely affect our ability to meet our production targets or satisfy customer demand and could require us to make unplanned capital expenditures, resulting in lower sales and having a material adverse effect on our financial results. For example, on February 27, 2010, an earthquake with an 8.8 magnitude on the Richter scale occurred in the South-Central Region of Chile, followed by a tsunami that affected the coast. This event led to the suspension of our operations in the affected region. It resulted in significant asset impairment charges due to earthquake-related damage to property and inventories, as well as a significant decrease in our sales volumes due to plant closures, which had an adverse effect on our results of operations and cash flows.

We cannot assure that we will not experience suspensions or interruptions or unexpected damage to our property as a result of earthquakes, aftershocks, tsunamis, any related repair and maintenance or other consequences associated with such events, or that our insurance coverage will be sufficient, any of which could have a material adverse effect on our revenue, results of operations and financial condition.

**Compliance with environmental laws and other regulations, and liabilities arising thereunder, have in the past resulted in, and may in the future result in, costs that could adversely affect our business, financial condition, results of operations and cash flows.**

We have significant operations in Argentina, Brazil, Canada, Chile, Mexico and the United States. We also have operations in Uruguay through our 50% share in the Montes del Plata joint operation ("Montes del Plata") and in Spain, Portugal, Germany and South Africa through our 50% share in the Sonae Arauco joint venture. In each of those countries we are subject to a wide range of national and local environmental laws and regulations concerning, among other matters, the preparation of environmental impact assessments for our projects, the protection of the environment and human health, the generation, storage, handling and disposal of waste, the discharge of pollutants and the remediation of contamination. As a forest products manufacturer, we generate air and water emissions and solid and hazardous wastes. These emissions and our waste disposal are subject to limits and controls prescribed by law or by our operating permits, and we may be required to install or upgrade our pollution control equipment in order to meet these legal requirements. We have made, and expect to continue to make, expenditures to maintain compliance with environmental laws. Notwithstanding our policy to strictly comply with all requirements established by applicable environmental laws, any failure to comply with such environmental laws may result in civil, administrative or criminal fines or sanctions, claims for environmental damages, remediation obligations, the revocation of environmental authorizations or the temporary or permanent closure of facilities.

Future changes in environmental laws, or in the application, interpretation or enforcement of those laws, including new or stricter requirements related to harvesting activities, air and water emissions and/or climate change regulations, could result in substantially increased capital, operating or compliance costs, impose conditions that restrict or limit our operations or otherwise adversely affect our business, financial condition, results of operations and cash flows. These changes could also limit the availability of our funds for other purposes, which could adversely affect our business, financial condition, results of operations and cash flows. Any serious violation of the above mentioned legal frameworks could result in substantial penalties, suspension of operating licenses, reputational damage, and potential personal liability for directors and officers.

In respect to such regulations, in January 2025, the Cruces river, where the Valdivia mill disposes its effluents, became subject to the Secondary Water Quality Standard for the Valdivia River Basin (hereinafter, the "Norm" or "SWQSVR"). The Valdivia mill discharges its treated effluents into the Cruces River, which is part of the Valdivia River Basin.

The Norm sets specific thresholds for various pollutants, emphasizing the prevention of pollution and promoting sustainable water management. We cannot exclude the possibility that the regulatory authority may declare that the Valdivia River Basin is "contaminated" and thus initiate an administrative proceeding to impose a decontamination plan, which may include new limits on discharges of wastewater applicable to our Valdivia mill. However, in March 2025, five trade organizations (*asociaciones gremiales*) challenged the validity of the Norm before the Third Environmental Court. Among other concerns, they raised issues regarding *(i)* various aspects of the Norm's General Environmental and Social Impact Assessment (or "AGIES", for its acronym in Spanish), *(ii)* lack of a public consultation process and *(iii)* uncertainty about the background information considered in the rulemaking process. These objections included the failure to adequately identify and account for the economic and social costs associated with implementing the Norm. Other criticism pointed out that many of the parameters and limits are not technically or environmentally justified. The lawsuit remains under review by the court as of the date of this annual report. A ruling is expected later in 2026, with the possibility of further appeals to the Supreme Court.

**Environmental concerns led to the temporary suspension of our operations at the Valdivia mill in 2005, which adversely affected, and in the future may continue to adversely affect, our business, financial condition, results of operations and cash flows.**

Our Valdivia mill faced environmental scrutiny when it began operations in 2004, particularly regarding its alleged impact on the Carlos Anwandter Nature Sanctuary and the black-neck swans living there. Operations were suspended for one month in 2005 due to these concerns. In 2009, as required by the environmental authorities, we submitted an environmental impact study for a pipeline to discharge wastewater into the Pacific Ocean, which was approved in 2010. However, obtaining additional necessary permits for the project has been challenging due to reasons beyond the Company's control. In February 2025, the maritime concession permit for the pipeline project was denied by the competent authority. The Company has filed an appeal to reverse this decision, which is pending as of the date of this report. As a result, we cannot provide any assurances that the project will be completed and that any deadline extensions would be granted, even if we comply with all the requirements that may be set forth by those authorities. If the installation of the pipeline is delayed for reasons attributable to us, we may face sanctions that include warnings, fines or the revocation of the Valdivia mill's environmental permit for operation.

The suspension of operations at the Valdivia mill in 2005 adversely affected our business, financial condition, results of operations and cash flows. Any future suspension of operations at the Valdivia Mill or at any other of our significant operating mills can be expected to have similar adverse effects. We offer no assurance that the Valdivia Mill, or our other mills, will be able to operate without further interruption.

**We have been and currently are subject to legal proceedings related to some of our operations which could adversely affect our business, financial condition, results of operations and cash flows.**

In connection with the death of fish in the Cruces River in January 2014 close to the Valdivia mill's effluent discharge, in January 2019, the National Defense Council (*Consejo de Defensa del Estado*) instituted a civil lawsuit seeking reparations from us for environmental harm allegedly caused by our Valdivia mill in connection with the death of fish in the Cruces River in January 2014. In January 2024, the Third Environmental Court rejected the lawsuit, concluding that there was insufficient evidence to link the alleged environmental damage to the operations of the Valdivia mill. The National Defense Council appealed to the Chilean Supreme Court. On April 3, 2025, the Supreme Court issued a final and binding judgment (*sentencia firme y ejecutoriada*) dismissing the appeal filed by the State Defense Council, thereby affirming the lower court's decision. The Court's ruling ratified that the evidentiary standard required to establish a causal link between the Valdivia mill's operations and the alleged environmental damage was not met. Consequently, the proceedings have been definitively concluded, and the complaint has been dismissed.

The commencement of criminal and civil proceedings against us at any time in the future could adversely affect some of our mills and/or forestry operations. We can neither predict the likelihood that we will face such similar proceedings in the future, nor the likely outcome or impact of any such proceedings.

We are also subject to certain administrative proceedings. In 2016 the Superintendence of the Environment initiated administrative proceedings against the Valdivia mill. The first part of the proceeding against the Valdivia mill concluded in 2017. On December 15, 2017, the Superintendence of the Environment decided that the Valdivia mill was liable for ten out of eleven charges and imposed a fine of 7,777 UTA (approximately U.S.$6.5 million as of December 2018). We appealed this decision on April 5, 2018 before the Third Environmental Court. A decision by the Third Environmental Court was issued in February 2020. This decision partially accepted the claim, only in connection with the inadequate classification of one of the charges, ordering the Superintendence to make a new classification. The decision also mentioned that the Superintendence had not proved that the death of fish in the Cruces River in January 2014 was caused by the operations of the Valdivia mill. This ruling was appealed by both the Superintendence and us before the Supreme Court. In December 2022, the Supreme Court upheld the Third Environmental Court decision, confirming most of the fines but stating that the death of fish in the Cruces River in January 2014 was not caused by the operations of the Valdivia mill, ruling that the Superintendence shall make a new classification in connection therewith. In January 2023, we paid the corresponding fines for approximately 5,360.2 UTA (approximately U.S.$4.9 million as of January 2023). In October 2024, the Superintendence of the Environment conducted a new classification of the pending charge, reducing the original fine by 70% (from 2,417 UTA to 705 UTA). However, the infraction was still classified as "serious" (*infracción grave*), with the Superintendence arguing that there was a continued breach of a key measure for managing spill risks. Shortly thereafter, the Company filed an appeal, requesting a more thorough consideration of the circumstances outlined by the regulations, particularly regarding the assessment of the "danger caused", and seeking a substantial reduction of the revised penalty. As of the date of this report, the Superintendence has yet to issue its final resolution.

In November 2025, the Moncure mill underwent an unannounced stormwater inspection conducted by the North Carolina Department of Energy, Mineral, and Land Resources. No significant instances of non-compliance were identified in the course of the inspection. The inspector noted, however, repeated benchmark exceedances and indicated that continued corrective actions would be required to address such exceedances, consistent with observations previously recorded since 2019. No notices of violation or civil penalties were received in connection with the inspection or the noted benchmark exceedances.

Any such proceedings or claims, or any subsequent interruption in our operations as a result of such proceedings as well as any unexpected costs to resolve such proceedings, may have an adverse effect on our business, financial condition, results of operations and cash flows. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Environmental concerns led to the temporary suspension of our operations at the Valdivia mill in 2005, which adversely affected, and in the future may continue to adversely affect, our business, financial condition, results of operations and cash flows."

Our ability to access local and international credit or capital markets may be restricted at a time when we need financing, which could have a material adverse effect on our flexibility to react to changing economic and business conditions.

As of December 31, 2025, we had U.S.$8.6 billion of outstanding indebtedness. The economic environment prevailing at any point in time may prevent us from accessing, or restrict our access to, credit and capital markets to satisfy our financing needs, or we may not be able to refinance our existing indebtedness on terms that are favorable to us or at all. If we are unable to refinance our indebtedness as it becomes due, or if we refinance such indebtedness on terms that are not favorable to us, our business, results of operations and financial condition could be materially and adversely affected. For further information, see "Item 11. Quantitative and Qualitative Disclosures About Market Risk—Interest Rate Risk".

**Material disruptions affecting our manufacturing mills, remanufacturing facilities, forestry assets or commercial operations could negatively impact our financial results and forestry operations.**

A material disruption at any of our manufacturing, processing or remanufacturing facilities, or commercial operations could prevent us from satisfying customer demand for our products, meeting our production targets and/or require us to make unplanned capital expenditures, resulting in lower sales, which could have a negative effect on our financial results. Our Chilean and Mexican facilities are located in regions known for seismic activity that exposes our facilities to the risk of earthquakes and, in some areas, to subsequent tsunamis.

In past years, a long-lasting conflict in part of the South of Chile extended in territory and escalated in violence towards areas where we have operations, especially in the Biobío, Araucanía and Los Ríos regions. This conflict included assaults, occupation of lands, arson of machinery and other assets, road blockades and confrontations with police. We also faced other additional difficulties in such regions, including theft of logs. The criminal activities affecting our operations in the South of Chile have gradually and substantially diminished since 2022. However, a new escalation of violence may result in material disruptions to our forestry or industrial operations in such regions.

Our commercial operations could also be affected by disruptions or other difficulties regarding supply chains, the availability of transportation, including containers or ships, among other factors.

In addition, our facilities (or any of our machines within an otherwise operational facility) could cease operations unexpectedly due to a number of events, including unscheduled maintenance outages; prolonged power failures; equipment failure; fires; floods; hurricanes; adverse weather conditions; disruptions in transportation infrastructure, including roads, bridges, railroad tracks, tunnels and ports; chemical spills or releases; droughts or reduced rainfall affecting water supply; or any other operational problem.

In Chile, the area dedicated to pine and eucalyptus plantations has been steadily declining in recent years, which may pose significant challenges in securing a reliable and consistent supply of wood for our plants, potentially affecting production capacity and operational efficiency.

In connection with losses to our production plants, facilities, equipment and forestry assets caused by material disruptions, our insurance coverage may be insufficient. The incurrence of losses or other liabilities that are not covered by insurance could result in significant and unexpected additional costs. Moreover, the terms and conditions for the renewal of our insurance policies may change in the future depending upon market circumstances and the type and amount of risks insured. See "Item 4. Information on our Company—Description of Business—Insurance".

**Currency fluctuations could have a negative effect on our financial results.**

Domestic currencies of the countries in which we have industrial operations have been subject to depreciations and appreciations in the past and may be subject to significant fluctuations in the future. Even though most of our business is denominated in U.S. dollars, a portion of our revenues, costs, incomes and other expenses are denominated in domestic currencies other than the U.S. dollar, such as the Chilean peso, the Euro, the Argentine peso, the Uruguayan peso, the Brazilian real, the Mexican peso and the Canadian dollar, among others. As a result, fluctuations in the exchange rates of such foreign currencies relative to the U.S. dollar may have a material adverse effect on our business, results of operations, financial conditions and cash flows.

**Disease or fires could affect our forests and manufacturing processes and, in turn, adversely affect our business, financial condition, results of operations and cash flows.**

Our operations are subject to various risks affecting our forests and manufacturing facilities, including disease and fire. Pests and diseases afflicting forest plantations in other parts of the world may migrate and may significantly affect the forestry industry in the future. See "Item 4. Information on our Company—Description of Business—Insurance."

Similarly, forest fires are always a risk, particularly during the forestry fires season in Chile that typically extends through the southern hemisphere summer, from the last quarter of each calendar year through the first quarter of the following year.

In January and February 2017, wildfires, exacerbated by high temperatures, the action of the winds, low atmospheric humidity and the complexity of combatting multiple focal points that appeared simultaneously in different places, broke out in the central and southern regions of Chile, and in respect of us, in the Maule, Ñuble and Biobío regions. As a consequence of such fires, we suffered the burning of approximately 72,500 hectares of forest plantations, which had a fair value of U.S.$210 million, according to IFRS Accounting Standards. The affected forest plantations represented 5.6% of the fair value of the total of our forest plantations, and 1.5% of our total assets.

During the 2022-2023 forest fire season, approximately 47,000 hectares of our productive forest plantations in Chile were adversely affected by fires that occurred in early 2023 in the regions of Maule, Ñuble, Araucanía, Biobío and Los Ríos due to a combination of multiple irresponsible and/or intentional actions by third parties and extreme unfavorable weather conditions such as high temperatures, low humidity and high winds. As of December 31, 2023, we recognized a forest fire loss of U.S.$17 million net of insurance compensation for the fires in Chile, representing 3.2% of the fair value of our total forest plantations.

During the 2023-2024 forest fire season, approximately 815 hectares of our forest plantations had been adversely affected by fires. During the 2024-2025 forest fire season, approximately 4,552 hectares of our forest plantations were adversely affected by fires.

As of the date of this annual report, during the 2025-2026 forest fire season, approximately 6,200 hectares of our forest plantations had been materially and adversely affected by fires.

In connection with losses to our production plants, facilities, equipment and forestry assets caused by fires, our insurance coverage may be insufficient. We do not maintain insurance coverage against pests, diseases and, in certain areas, fires that could affect our planted forests. The incurrence of losses or other liabilities could result in significant and unexpected additional costs. Moreover, the terms and conditions for the renewal of our insurance policies may change in the future depending upon market circumstances and the type and amount of risks insured. See "Item 4. Information on our Company—Description of Business—Insurance."

**Climate change may increase the frequency and severity of extreme weather events and other natural hazards, which could disrupt our operations.**

A significant number of scientists, environmentalists, international organizations, regulators and other commentators maintain that global climate change has contributed, and will continue to contribute, to the increasing unpredictability, frequency and severity of natural disasters (including, but not limited to, hurricanes, droughts, tornadoes, freezes, other storms and fires) in certain parts of the world. As a result, a number of legal and regulatory measures as well as social initiatives have been introduced in numerous countries in an effort to reduce carbon dioxide and other greenhouse gas emissions and combat global climate change. Such reductions in greenhouse gas emissions could result in increased energy, transportation and raw material costs and may require us to make additional investments in facilities and equipment. In addition, our plantations are located in regions which have favorable climatic conditions for a short growing cycle. Any climate changes that negatively affect such favorable climate conditions in central or southern Chile or in any region in which we benefit from favorable climate conditions could adversely affect the growth rate and quality of our plantations, or our production costs.

For instance, Chile has experienced significant climate variability in recent years, with both droughts and heavy rainfall impacting operations. In 2019, a severe drought forced the Licancel mill to suspend activities for nearly three months. While rainfall in the Maule region improved during the summer of 2021, water scarcity persisted, leading to operational suspensions at the Valdivia pulp mill—five days in February 2022 and one day in February 2023 due to low river flows.

In contrast, 2023 brought an exceptionally rainy season to central and southern Chile, temporarily alleviating water deficits and surpassing normal rainfall levels. However, heavy rains in June and August of such year caused the Mataquito River to overflow, flooding Licantén city and the Licancel pulp mill. This led to the indefinite suspension of operations at the Licancel mill in August 2023, driven by escalating climate variability. During the same year, high temperatures, strong winds, and drought conditions from previous years contributed to widespread forest fires, severely damaging Arauco's forestry assets. For more information on risks related to disease and fires affecting our forests, refer to Item 3. Key Information—Risk Factors—Risks Relating to the Company—Disease or fires could affect our forests and manufacturing processes and, in turn, adversely affect our business, financial condition, results of operations, and cash flows.

In Brazil, extreme climate conditions have also disrupted industrial operations. In late April and early May 2024, the state of Rio Grande do Sul experienced unprecedented flooding, driven by intense and prolonged rainfall that far exceeded historical averages. The event, considered the worst flooding in the region in more than 80 years, led to widespread landslides, severe infrastructure damage, and large scale displacement of communities. With rainfall in some areas reaching nearly three times the normal levels for that period, critical services such as transportation, energy, and water supply were heavily affected. The scale of the disruption highlighted the growing exposure of production sites and logistics networks to extreme weather events in southern Brazil.

Although we cannot predict the impact of changing global climate conditions, if any, or potential legal, regulatory and social responses to concerns about global climate change, any such occurrences may negatively affect our business, financial condition, results of operations and cash flows.

**Evaluation and implementations of mergers, acquisitions and investments to expand or complement our operations could result in operating difficulties or otherwise adversely affect our business, financial conditions and results of operations.**

From time to time, we carry out mergers, acquisitions and investments to expand or complement our operations. In connection with such transactions, we may be exposed to various risks, including those arising from: (i) not having accurately assessed the value, future growth potential, strengths, weaknesses and potential profitability of potential acquisition targets; (ii) difficulties in successfully integrating, operating, maintaining or managing newly-acquired operations, including personnel; (iii) unexpected costs of such transactions; (iv) unexpected contingent or other liabilities or claims that may arise from such transactions; or (v) inadequate due diligence, in legal environmental and tax matters. If any of these risks were to materialize, it could adversely affect our business, financial condition and results of operations.

**Labor action, contractual and other disputes could adversely affect our operations.**

We have had certain strikes, work slowdowns, stoppages and other labor-related disruptions that have adversely affected our operations.

Under Chilean, Brazilian, Mexican, Argentine and Uruguayan labor legislation, we are secondarily liable for the payment of labor and social security obligations owed to our contractors' employees. In Chile, if we do not supervise our contractors in their fulfillment of their labor and social security obligations pursuant to labor laws, then our responsibility will be elevated from secondary to joint and several, thus enabling an employee of a contractor to bring a claim against both the contractor and us (as the party hiring such contractor), even though the contractor will remain primarily liable for its obligations. We also have some responsibilities for the health and safety conditions of the contractors' employees and are obliged to ensure that the contractors comply with all obligations related to such conditions, while such employees are performing activities within the scope of our business operations.

In Argentina, joint liability rules that are substantially similar to those we are subject to in other countries where we have industrial operations, apply to a principal and its contractors. In addition, the national rural labor law, Law No. 26,727, promulgated on December 28, 2011 and fully in effect since March 2013, permits contractor employees under forestry contracts to bring actions directly against the principal to whom the employees' services are being provided, instead of requiring them to bring actions against the contractor. For works or services related to the ordinary production process of a principal, the law provides that an employment relationship is deemed to exist between the principal and the employee of the contractor.

In Uruguay, under Laws 18.099 and 18.251, the liability for our Montes del Plata joint operation with Stora Enso arises only in case of subcontractors, intermediaries or suppliers of labour manpower (as defined in Article 1 of Law 18.251). The liability will be joint and several unless Montes del Plata duly exercises its right to be informed that contractors fulfill their labor and social security obligations pursuant to labor laws.

In the first half of 2024, Compañía Puerto de Coronel S.A. in Chile, in which we hold an indirect 50% stake, experienced a strike that lasted for 56 days. This disruption significantly impacted the dispatch of our products, as it was one of our primary shipping ports in Chile.

In Chile, in late 2024 and early 2025, our Valdivia mill was on strike for 37 days, which resulted in a complete halt of production for the duration of the strike.

We may be affected by future strikes, work slowdowns, stoppages or other labor-related developments in the various countries in which we operate, including such developments attributable to employees of contractors performing outsourced services, and such strikes, slowdowns, stoppages or other developments could have a material adverse effect on our business, financial condition, results of operations or prospects.

**Cybersecurity events, such as a cyberattack, could adversely affect our business, financial condition and results of operations.**

Our business relies on information technology systems to effectively manage and support our core business processes. Therefore, interruptions in these systems caused by employee error or attacks, external cyber-attacks, obsolescence or technical failures can deeply harm our business operations. Cybersecurity risks have generally increased in recent years as a result of the proliferation of new technologies and the increased sophistication and activities of cyberattacks. Any failure of our systems could disrupt our business and result in leaks of confidential information, production errors, processing inefficiencies and the loss of sales and customers, which in turn could result in decreased revenue, increased costs and excess or out-of-stock inventory levels or involve any legal or regulatory breach.

Additionally, cyberattacks or internal actions, including negligence or misconduct of our employees and suppliers, may have a negative impact on our reputation, our relationship with external entities (government, regulators, partners, among others) and our strategic positioning with relation to our competitors. Any significant security breaches or disruptions in the performance of our information technology systems could have a material adverse effect on our results of operations and financial condition. For more information regarding our cybersecurity policy, see "Item 4. Information on our Company—Description of Business—Cybersecurity".

**We may face difficulties in implementing our investment projects, which could negatively impact our growth prospects.**

As part of our property strategy, we aim to invest in supporting infrastructure to enhance the value of these assets. However, executing these investment projects may present several challenges, including: (i) delays or failures in acquiring necessary equipment or services; (ii) costs exceeding initial estimates; (iii) difficulties in obtaining required environmental and government permits; (iv) changes in market conditions that could reduce the profitability of the projects; (v) challenges in acquiring land at attractive prices or increases in land prices driven by rising demand from competitors; (vi) difficulties in identifying and acquiring land that complies with real estate laws; (vii) limitations in our ability to develop infrastructure and attract qualified labor efficiently and on schedule; (viii) disputes or litigation related to land acquisitions; (ix) cultural integration challenges arising from the introduction of new management and employees; and (x) the need to update accounting systems, administrative data, and human resources processes. Failure to effectively manage these risks could have an adverse impact on our business.

**Risks Relating to Chile**

**Adverse changes in Chile's political, legal, tax, social and economic conditions could directly impact our business and the market price of our securities.**

For the year ended on and as of December 31, 2025, 58.4% of our property, plant and equipment and forest assets were directly owned by Arauco and our Chilean subsidiaries, and 56.4% of our revenues were attributable to our Chilean operations. Accordingly, our business, financial condition, results of operations and cash flows depend, to a considerable extent, upon political and economic conditions in Chile. Future changes in Chile's political, regulation and economic conditions - affecting interest rates, exchange rates, inflation, tax rates or charges on imports and/or exports, among others - could adversely affect our business, financial condition, results of operations and cash flows and may impair our ability to proceed with our strategic plan of business. In addition, such changes may impact the market price of our securities.

We cannot assure that future developments in Chile, will not have an adverse effect on our business, financial condition or result of operations. Further, we cannot assure that any new government policies, or any new law enacted by Congress will not adversely affect the Chilean economy or, directly or indirectly, our business, operations, and revenues.

**Chile has different corporate disclosure standards from those with which you may be familiar in the United States, and Chile's securities laws may not afford you the same protections as U.S. securities laws.**

The securities disclosure requirements applicable to certain foreign private issuers differ from those applicable to issuers domiciled in the United States in some important respects. Accordingly, the information about us available to you will not be the same as the information disclosed by a U.S. company required to file reports with the U.S. Securities and Exchange Commission (the "SEC").

In addition, although Chilean law imposes restrictions on insider trading and price manipulation, applicable Chilean securities laws and regulations are different from those in the United States, and some investor protections available in the United States may not be available in the same form, or at all, in Chile.

**Risks Relating to the United States and Canada**

**Economic conditions in the United States and Canada may have a direct impact on our business, financial condition, results of operations and cash flows.**

For the year ended on and as of December 31, 2025, 3.8% of our property, plant and equipment were owned by our U.S. subsidiaries, and 13.0% of our revenues were attributable to our U.S. operations. See "Item 4. Information on our Company—Description of Business." As a result of the foregoing, to a certain extent, our business, financial condition, results of operations and cash flows will be dependent on economic conditions in the United States.

For the year ended on and as of December 31, 2025, 0.2% of our property, plant and equipment were owned by our Canadian subsidiaries, and 3.0% of our revenues were attributable to our Canadian operations. See "Item 4. Information on our Company—Description of Business." As a result of the foregoing, to a certain extent, our business, financial condition, results of operations and cash flows will be dependent on economic conditions in Canada.

Risks Relating to Brazil

**Economic conditions and government policies in Brazil may have a direct impact on our business, financial condition, results of operations and cash flows.**

For the year ended on and as of December 31, 2025, 17.6% of our property, plant and equipment and forest assets were owned by our Brazilian subsidiaries and 8.5% of our revenues were attributable to our Brazilian operations. See "Item 4. Information on our Company—Description of Business." As a result of the foregoing, to a certain extent, our business, financial condition, results of operations and cash flows will be dependent on economic conditions, government policies and local regulations in Brazil.

**The Brazilian government has exercised significant influence over the Brazilian economy. Brazilian political and economic conditions have a direct impact on our business.**

The Brazilian government has exercised a substantial influence over many aspects of the Brazilian economy. The Brazilian government's actions to control inflation and other policies and regulations have involved in the past, among other measures, wage and price controls, currency devaluations, capital controls and limits on imports. The business, financial condition, results of operations and cash flows of our Brazilian subsidiaries may be adversely affected by such matters, changes in policy or regulation involving tariffs and exchange controls, as well as by other factors.

The Brazilian government's actions have had and may continue to have a material effect on private sector entities, including our operations in Brazil. We have no control over and cannot predict how government intervention and policies will affect the Brazilian economy or, directly and indirectly, our operations and revenues.

Future economic, social and political developments in Brazil may adversely affect the business, financial condition, results of operations and cash flows of our Brazilian subsidiaries.

**Risks Relating to Argentina**

**Economic conditions and government policies in Argentina may have a direct impact on our business, financial condition, results of operations and cash flows.**

For the year ended on and as of December 31, 2025, 4.9% of our property, plant and equipment and forest assets were owned by our Argentine subsidiaries, and 8.7% of our revenues were attributable to our Argentine operations. As a result of the foregoing, our business, financial condition, results of operations and cash flows will be dependent, to a certain extent, on economic conditions and government policies in Argentina. See "Item 4. Information on our Company—Description of Business—History."

There are various aspects of the Argentine economy that could adversely affect our operations, including, among others, inflation, interest rates, taxes and foreign exchange controls implemented in Argentina, which include the obligation to repatriate foreign currency obtained abroad and restrictions on the transfer of funds abroad.

In 2017, we signed an intercompany loan with Arauco Argentina S.A. ("Arauco Argentina"), for U.S.$250 million, which proceeds were used to repay in full certain Arauco Argentina's debt that we guaranteed. During 2018, Arauco Argentina prepaid U.S.$90 million.

On May 28, 2020, the Central Bank of the Argentine Republic ("BCRA") issued Communication "A" 7030 (as amended from time to time, "Communication 7030"), which established additional requirements on outflows made through the local foreign exchange market ("MULC"). Among other things, Communication 7030 provides that the BCRA's prior approval is required to access the foreign exchange market to make financial debts principal payments abroad if the creditor is an affiliate of the debtor. This requirement was applicable as of the date of this annual report. This provision continues in force and the BCRA has not yet authorized Arauco Argentina to make the principal payments that were due on June 1, 2020, December 1, 2020, June 1, 2021, December 1, 2021, and June 1, 2022, which is the loan expiration date. However, under Communication "A" 7301 of the BCRA, which allows access to the MULC without the prior approval of the BCRA for the cancellation of this type of loans between related parties, to those who have a Certification of increase in Exports of Goods for the year 2021, Arauco Argentina made a partial cancellation of U.S.$6 million of the overdue debt on July 14, 2022. The balance due after such payment of principal is U.S.$154 million.

On April 21, 2023, the BCRA issued Communication "A" 7746 which provides that the BCRA's prior approval is required to access the foreign exchange market to make payments abroad of interests of financial debts if the creditor is an affiliate of the debtor.

On December 19, 2024, the BCRA issued Communication "A" 8161 which allows access to the foreign exchange market for the payment of interest accrued from January 1, 2025, onwards without penalty. As of December 31, 2025, the amount of interest due is U.S.$

67.1 million. However, the BCRA has not yet authorized Arauco Argentina to make the interest payments that were due on June 1, 2023, December 1, 2023, June 1, 2024 and December 1, 2024.

During 2023, the former administration of the Argentine government approved different rules that complexified or directly prohibited access to the MULC for payments to foreign suppliers. For this reason, Arauco Argentina has received a series of loans from its shareholder Arauco Wood Ltd. in order to be able to make certain payments on overdue debts. The balance due as of December 31, 2025 is U.S.$

45 million.

We cannot predict how current foreign exchange restrictions may change after the date hereof and whether they may limit or impede our ability to fulfil our commitments, which in turn may have a negative impact on our financial condition, results of operations and cash flows.

We have no control over and cannot predict how any future changes in economic policy or other changes in the Argentine economy may affect our operations and revenues in Argentina.

**The Argentine government has exercised significant influence over the Argentine economy. Argentine political and economic conditions have a direct impact on our business.**

The Argentine government has exercised a substantial influence over many aspects of the Argentine economy. In furtherance of its economic objectives, the Argentine government has adopted a wide variety of measures, such as wage and price controls, currency devaluations, exchange and capital controls and limits on imports, among others. The business, financial condition, results of operations and cash flows of our Argentine subsidiaries may be adversely affected by any such measures or regulatory changes, including with respect to tariffs and exchange controls.

The Argentine government's actions have had and may continue to have a material effect on private sector entities, including our operations in Argentina. We have no control over and cannot predict how government intervention and policies will affect the Argentine economy or, directly and indirectly, our operations and financial condition.

Future economic, social and political developments in Argentina may adversely affect the business, financial condition, results of operations and cash flows of our Argentine subsidiaries.

**Risks Relating to Mexico**

**Economic and social conditions and government policies in Mexico may have a direct impact on our business, financial condition, results of operations and cash flows.**

For the year ended on and as of December 31, 2025,

2.7% of our property, plant and equipment were owned by our Mexican subsidiaries, and 3.0% of our revenues were attributable to our Mexican operations. See "Item 4. Information on our Company—Description of Business."

Mexico has recently experienced an upsurge in violence. Although the situation remains evolving, further escalation or geographic expansion of violence could adversely affect the regions in which we operate. If violence were to intensify or disrupt public security in the areas where we operate, it could impact the safety of our personnel, the continuity of our operations, the execution of expansion projects, the reliability of logistics and supply chains, and our operating costs. Any such disruptions could have a material adverse effect on our business, financial condition, and results of operations.

In the past, Mexico has experienced several periods of slow or negative economic growth, high inflation, high interest rates, currency devaluation, government intervention in the economy and other economic disruptions. Future economic, social, legal, judicial and political developments in Mexico may adversely affect the business, financial condition, results of operations and cash flows of our Mexican subsidiaries.

**The Mexican government has exercised significant influence over the Mexican economy. Mexican political and economic conditions have a direct impact on our business.**

The Mexican government has exercised a substantial influence over many aspects of the Mexican economy. The Mexican government's actions to control inflation and other policies and regulations have involved in the past, among other measures, wage and price controls, currency devaluations, capital controls and limits on imports. The business, financial condition, results of operations and cash flows of our Mexican subsidiaries may be adversely affected by such matters, changes in policy or regulation involving tariffs and exchange controls, as well as by other factors.

The Mexican government's actions have had and may continue to have a material effect on private sector entities, including our operations in Mexico. We have no control over and cannot predict how government intervention and policies will affect the Mexican economy or, directly and indirectly, our operations and revenues.

Future economic, social and political developments in Mexico may adversely affect the business, financial condition, results of operations and cash flows of our Mexican subsidiaries.

**Risks Relating to Uruguay**

**Economic conditions and government policies in Uruguay may have a direct impact on our financial condition, results of operations and cash flows.**

For the year ended on and as of December 31, 2025,

12.4% of our property, plant and equipment and forest assets were located in Uruguay, and 7.5% of our revenues were attributable to the Uruguayan joint operation of Montes del Plata. See "Item 4. Information on our Company—Description of Business."

We have made significant investments, and we may make additional ones in the future. As a result, our financial condition and results of operations may consequently depend, to a certain extent, on political and economic conditions. Certain future actions by the Uruguayan government, including, among others, actions with respect to forestation, inflation, interest rates, foreign exchange controls and taxes, could have a material adverse effect on our operations.

**Risks Relating to Other Markets**

**Our business, earnings and prospects may be adversely affected by developments in other countries that are beyond our control.**

Our business, financial condition, results of operations and cash flows depend on the level of economic activity, government and foreign exchange policies and political and economic developments in our principal markets. Our business, earnings and prospects, as well as our financial condition, results of operations, cash flows and the market price of our securities, may be materially and adversely affected by developments in our principal markets relating to inflation, interest rates, currency fluctuations, protectionism, government subsidies, price and wage controls, exchange control regulations, taxation, expropriation, social instability or other political, economic or diplomatic developments. For example, certain target countries to which we export may impose buying restrictions in our industry, which may adversely affect our sales. We have no control over these conditions and developments which could adversely affect us and our business, financial condition, results of operations and cash flows or the price or market of our securities.

**Developments in other emerging and developed markets may adversely affect the market price of our securities and our ability to raise additional financing.**

Our financial condition and the market price of our securities may be adversely affected by declines in the international financial markets and world economic conditions. Investors' reactions to developments in one country can affect the securities markets and the securities of issuers in other countries. Negative developments in the international financial markets in the future could adversely affect the market price of our securities and impair our ability to raise additional capital.

**Risks Relating to Our Securities**

**The non-payment of funds by our subsidiaries could have a material adverse effect on our business, financial condition, results of operations and ability to service our debt, including our securities.**

Our cash flow and ability to service debt is dependent, in part, on the cash flow and earnings of our subsidiaries and the payment of funds by those subsidiaries to us, in the form of loans, interest, dividends or otherwise. Our subsidiaries are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any amounts due under the terms of our securities or to make any funds available for such purpose.

Furthermore, claims of creditors of our subsidiaries, including trade creditors, will have priority over our creditors, including holders of our securities, with respect to the assets and cash flow of our subsidiaries. Our right to receive assets of any of our subsidiaries upon their liquidation or reorganization (and the consequent right of the holders of our securities to participate in those assets) will be effectively subordinated to the claims of our subsidiaries' creditors.

**Changes in Chilean tax laws could lead us to redeem our securities.**

Under current Chilean law and regulations, payments of interest made from Chile to holders of debt securities who are neither residents nor domiciled or organized in Chile for purposes of Chilean taxation will, generally, be subject to Chilean withholding tax at a rate of 4.0%. Subject to certain exceptions, we will pay additional amounts (as described in "Item 10. Additional Information-Taxation") so that the net amounts received by the holder of our notes (including additional amounts) after such Chilean withholding tax will equal the amounts that would have been received in respect of the notes in the absence of such Chilean withholding tax. In the event of certain changes in Chilean tax laws requiring that we pay additional amounts that are in excess of the additional amounts that we would owe if payments of interest on our securities were subject only to a 4.0% withholding tax, we will have the right to redeem our securities.

**Credit rating downgrades below investment grade could have a material and adverse effect on our business, financial condition, results of operations and ability to service our debt, including our securities.**

Credit rating agencies could downgrade our ratings either due to factors specific to us, a prolonged cyclical downturn in the forestry industry or macroeconomic trends (such as global or regional recessions) and trends in credit and capital markets more generally. Any decline in our credit rating could increase our cost of borrowing and may affect our financial condition, results of operations and profitability, including our ability to refinance our existing indebtedness.

On April 20, 2021, Standard & Poor's changed our ratings outlook from negative to stable, citing a recovery in pulp prices and the expectation of an acceleration in deleveraging.

On July 28, 2021, Fitch Ratings changed our outlook from negative to stable, and our local rating from AA- to AA mentioning the strengthening of our credit profile and strong operating cash flow generation due to a substantial recovery in pulp prices and increased demand in the wood products division.

On November 24, 2023, Moody's changed our ratings outlook from stable to negative, mentioning subpar financial results during the first nine months of 2023 due to unique circumstances, such as the ramp up process of Line 3 of the Arauco pulp mill ("Arauco 3") contemplated by the "MAPA" project, a steep fall in prices, the severe forest fire in early 2023 and mill stoppages.

On August 15, 2024, Moody's changed our ratings outlook from negative to stable, mentioning expectations for a significant reduction in debt by the end of 2024 and an improved operational performance, driven by increased pulp production and a resurgence in pulp prices.

On October 4, 2024, Fitch Ratings changed our ratings outlook from stable to negative after the approval of the Sucuriú Project. While acknowledging the strategic importance of the project in positioning the Company as the second-largest pulp producer with a competitive cost structure, Fitch highlighted that it would place pressure on our net leverage. For more information regarding the Sucuriú Project, see "

Item 4. Information on our Company—Description of Business—History".

On November 24, 2025, Standard & Poor's revised our ratings outlook from stable to negative citing that persistently low pulp prices could affect our EBITDA and operating cash flow. Additionally, Standard & Poor's noted that while capital expenditures related to the Sucuriú Project are expected to place pressure on our balance sheet, the project is expected to enhance the Company's long-term competitiveness and efficiency by increasing production capacity and lowering average unit costs.

We cannot assure that we will not be subject to further credit rating downgrades. Credit rating downgrades below investment grade could have a material and adverse effect on our ability to service our debt, including our securities, which, in turn, could have a material adverse effect on our business, financial condition and results of operations.

**Item 4. Information on our Company**

**DESCRIPTION OF BUSINESS**

**Overview**

We believe we are one of Latin America's largest forest plantation owners and one of the world's largest producers of market pulp, in the form of bleached and unbleached softwood kraft pulp, bleached hardwood kraft pulp, dissolving and fluff pulp, and panels (fiberboard and particleboard) in terms of production capacity. We have industrial operations in Chile, Argentina, Brazil, Mexico, the United States and Canada. We also have industrial operations in Uruguay, through our 50% share in the Montes del Plata joint operation, and in Spain, Portugal, Germany and South Africa, through our 50% share in the Sonae Arauco joint venture. As of December 31, 2025, we owned more than 735 thousand hectares of forest plantations in Chile, Argentina, Brazil and Uruguay combined.

During 2025, (i) we sold 4.6 million metric tons of pulp, in the form of hardwood bleached pulp, softwood bleached pulp, softwood unbleached pulp, fluff pulp, and dissolving pulp; (ii) we sold 7.1 million cubic meters of wood products, including sawn timber (green and kiln-dried lumber), remanufactured wood products, plywood and panels (medium-density fiberboard ("MDF"), particleboard ("PBO"), and high-density fiberboard ("HDF")); and (iii) we harvested

17.9 million cubic meters of sawlogs and pulplogs. Our revenues consist of export sales and domestic sales in the countries where we have industrial operations. During 2025, sales in Asia and Oceania, North America, South and Central America, Europe and other regions accounted for 37.6%, 29.6%, 24.9%, 6.5% and 1.4% respectively, of our total revenue for such year.

As of December 31, 2025, our planted forests consisted of approximately

52.3% eucalyptus and approximately 45.8% radiata, taeda and elliottii pine. We seek to manage our forestry resources sustainably and in a way that ensures that the annual growth of our forests is equal to or greater than the volume of resources we harvest each year. In 2025, we planted a total of 124,518 hectares and harvested a total of 44,637 hectares in Chile, Argentina, Brazil and Uruguay.

We operate our business through two main segments: pulp and wood products, each as described below.

**Pulp**

Our pulp segment consists of our manufacturing of market pulp, in the form of bleached and unbleached softwood kraft pulp, bleached hardwood kraft pulp, dissolving pulp and fluff pulp. Our pulp segment also includes our sales of forestry products (i.e., sawlogs, pulplogs, chips and others) and energy.

We own four producing pulp mills in Chile, one in Argentina and jointly own one in Uruguay through our Montes del Plata joint operation with Stora Enso. Our aggregate installed annual pulp production capacity (including our 50% share of the Montes del Plata mill's 1.4 million metric ton capacity) is approximately

5.1 million metric tons. During 2025, our pulp mills produced 4.3 million tonnes of bleached pulp and 0.3 million tonnes of unbleached pulp.

During 2025, our sales volume (in tonnes) in Asia and Oceania, Europe and North and South America represented

76.2%, 13.6% and 10.2% respectively of our total pulp sales volume for such year. During 2025, our pulp and forestry segment revenues were U.S.$2,935.9 million, representing 48.3% of our total revenues for such year.

**Wood Products**

Our wood products segment consists of our manufacturing of fiberboard panels, sawn timber, plywood and remanufactured wood products.

During 2025, our wood products sales volume (in cubic meters) in North America, Central and South America, Asia and Oceania, and other countries represented

49.1%, 39.4%, 8.5% and 3.0%, respectively, of our total wood products sales volume for such year. During 2025, our wood products segment revenues were U.S.$2,958.1 million, representing 48.6% of our total revenues for such year, and were comprised of (i) U.S.$2,028.1 million in sales of fiberboard panels and (ii) U.S.$930.0 million in sales of sawn timber, plywood and remanufactured wood products.

*Fiberboard Panels*

We own and operate fiberboard panels mills in Chile, Argentina, Brazil, the United States, Canada and Mexico. Fiberboard includes MDF, PBO and HDF. As of December 31, 2025, our aggregate installed annual fiberboard panels production capacity was approximately

6.3 million cubic meters, and our production during 2025 was approximately 5.1 million cubic meters.

During 2025, our sales volume (in cubic meters) of medium-density fiberboard panels and particleboard panels represented approximately

51.8% and 48.2% of our total fiberboard panels sales volume, respectively. For the same year, our fiberboard panels sales volume (in cubic meters) in the United States and Canada, Brazil, Mexico, Argentina, Chile and other countries represented 42.7%, 27.4%, 12.0%, 9.5%, 4.3% and 4.1%, respectively, of our total fiberboard panel sales volume for such year.

*Sawn Timber, Plywood & Remanufactured Wood Products*

We own and operate sawmills in Chile and in Argentina with an aggregate installed annual production capacity of approximately

2.4 million cubic meters of sawn timber. We also own plywood mills with an aggregate installed annual production capacity of approximately 0.7 million cubic meters. Additionally, we own remanufacturing facilities in Chile and in Argentina that reprocess sawn timber into remanufactured wood products such as mouldings and frames. In 2025, we produced 2.7 million cubic meters of sawn timber, plywood and remanufactured wood products.

During 2025, our sawn timber, plywood and remanufactured wood products sales volume (in cubic meters) in the United States, Chile, Mexico, South Korea, China, Japan, Vietnam, Saudi Arabia and other countries represented

29.4%, 17.5%, 6.7%, 6.4%, 6.2%, 4.4%, 3.7%, 3.3% and 22.4%, respectively, of our total sawn timber and remanufactured wood products sales volume for such year.

**HISTORY AND DEVELOPMENT OF THE COMPANY**

Celulosa Arauco y Constitución S.A. is a *sociedad anónima* (corporation) organized under the laws of Chile and subject to certain rules applicable to *sociedades anónimas abiertas* (Chilean public corporations). We were formed on September 14, 1979 in a merger between Industrias de Celulosa Arauco S.A. ("Industrias Arauco") and Celulosa Constitución S.A. ("Celulosa Constitución"). Our two predecessor companies were created in the late 1960s and early 1970s by Corporación de Fomento de la Producción ("Corfo"), a Chilean government development corporation, to develop forest resources, improve soil quality and promote employment. As part of the Chilean government's privatization program, Corfo sold Industrias Arauco to Compañía de Petróleos de Chile S.A. ("Copec"), in 1977 and Celulosa Constitución to Copec in 1979. In October 2003, Copec transferred all of its gasoline- and fuel-related business assets to a new subsidiary, Compañía de Petróleos de Chile COPEC S.A. In 2003, Copec changed its legal name to Empresas Copec S.A. ("Empresas Copec"), while in 2021 Compañía de Petróleos de Chile COPEC S.A. changed its legal name to COPEC S.A. See "Item 7. Major Shareholders and Related Party Transactions—Major Shareholders."

In 1996, we acquired Alto Paraná S.A., an Argentine company that subsequently changed its name to Arauco Argentina S.A., which, at the time of the acquisition, owned plantations and other land in Argentina and manufactured and sold bleached softwood kraft pulp. With this initial acquisition, we began our expansion outside of Chile.

Between 2005 and 2016, we expanded our presence in Chile, Argentina, Brazil, the United States, Canada and Uruguay through a series of acquisitions described below that increased our land holdings and the production capacity of various sectors of our business.

In 2009, together with a subsidiary of Stora Enso, we acquired the Uruguayan subsidiaries of Grupo Empresarial ENCE, S.A. The main assets of these Uruguayan companies included 130,000 hectares of land, of which 73,000 had forestry plantations, 6,000 hectares under agreements with third parties, an industrial site, the necessary environmental permits for the construction of a pulp mill, a river terminal, a chip producing mill and a nursery.

On September 27, 2009, we entered into a series of joint operation agreements with Stora Enso, which resulted in Stora Enso and us agreeing joint control over a group of companies operating in Uruguay, which comprise the Montes del Plata joint operation.

In 2011, the Montes del Plata joint operation built a state-of-the-art pulp mill with an annual production capacity of 1.3 million tonnes, a port and a power producing unit based on renewable sources, all located in Punta Pereira in the department of Colonia, Uruguay. The Montes del Plata pulp mill entered the production phase in June 2014 and reached full production capacity in October 2015.

In September 2012, we acquired 100% of the shares of Flakeboard Company Limited ("Flakeboard"), a North American producer of wood paneling for furniture with seven panel mills in Canada and the U.S., with an aggregate annual production capacity of 1.2 million cubic meters of MDF panels, an annual production capacity of 1.2 million cubic meters of PBO, and an annual production capacity of 634,000 cubic meters of melamine.

In May 2015, we acquired 50% of the shares of a Spanish subsidiary of Sonae Industria, named Tableros de Fibras S.A., and changed its name to "Sonae Arauco". We and Sonae Industria jointly control Sonae Arauco. Sonae Arauco and its subsidiaries produce market wood panels of the oriented strand board ("OSB"), MDF and PBO, and sawn timber through the operation of: (i) two panel mills and one sawmill in Spain; (ii) two panel mills and one resin plant in Portugal; (iii) three panel mills and one impregnation papers plant in Germany, (iv) and two panel mills in South Africa (one of which is currently shut down). The aggregate annual production capacity of Sonae Arauco is approximately 460,000 cubic meters of OSB, 1,450,000 cubic meters of MDF, 2,270,000 cubic meters of particleboards and 100,000 cubic meters of sawn timber.

On October 25, 2016, our Board of Directors approved the "MDP Grayling" project by our U.S. subsidiary Flakeboard America Limited, located in the State of Michigan, United States of America. The project consisted of the construction and operation of a mill dedicated to the manufacture of medium-density particle board. The current production capacity of the mill is 800,000 cubic meters of PBO per year, of which approximately 320,000 cubic meters are coated with melamine paper. The project began operations by April 2019 and required an investment of approximately U.S.$450 million, which was financed with our own resources and bank loans.

On September 13, 2017, our Board of Directors approved a "Dissolving Pulp" project at the Valdivia mill, aiming to diversify the type of pulp produced by enabling dissolving pulp production. This project required an investment of approximately U.S.$200 million. This project was built in the current facilities of the Valdivia mill, implementing certain adjustments and new equipment. The project installed two new additional digesters to optimize the production level of dissolving pulp, a new discharging tank of pulp (storing process) and certain modifications to the treatment areas, among other changes. In addition, the project increased the mill's capacity to inject energy to the Chilean power grid (Sistema Eléctrico Nacional) (the "SEN") from the current units of the mill. Construction of this project was completed at the end of 2019, and the mill started to produce dissolving pulp in June 2020.

On December 6, 2017, through our Brazilian subsidiary Arauco do Brasil S.A., we acquired from Masisa S.A. ("Masisa"), 100% of Masisa do Brasil Ltda., currently named Arauco Indústria de Painéis Ltda. The main assets acquired as a result of the transaction consist of two industrial complexes located in Ponta Grossa (Paraná) and in Montenegro (Rio Grande do Sul). They have a line of MDF boards with an annual installed capacity of 300,000 m3, a line of PBO with a current annual installed capacity of 500,000 m3, and four lines of melamine coating, with a total annual installed capacity of 660,000 m3.

In January 2019, through our subsidiaries Arauco Internacional and AraucoMex, S.A. de C.V., we acquired all the shares of certain of Masisa's Mexican subsidiaries. The main assets acquired were two industrial complexes located in Durango and Zitácuaro, that consist of three PBO lines with an annual installed capacity of 339,000 m3; an MDF line with an annual installed capacity of 220,000 m3; thermally fused laminates ("TFL") lines with an annual installed capacity of 309,000 m3; a chemical plant with an installed capacity of 60,000 tonnes of resins and 60,600 tonnes of formaldehyde; and impregnation lines with an aggregate annual installed capacity of 28.9 million of m2.

On July 24, 2018, our Board of Directors approved the modernization and expansion of the Arauco mill located in the Province of Arauco, Biobío Region, Chile (*Proyecto Modernizacion Ampliacion de la Planta Arauco, MAPA*). The MAPA project included the construction and start-up of a new production line of 1,560,000 annual tonnes of bleached hardwood kraft pulp (Arauco 3), with an estimated investment of approximately U.S.$2.85 billion. The MAPA project increased the net production of the Arauco mill by approximately 1,270,000 tonnes of pulp, reaching Arauco mill a total production capacity of approximately 2,100,000 annual tonnes. The modernization and expansion began in February 2019. Line 1 of the Arauco mill ceased its operations on January 3, 2022, and on January 20, 2023, the production of the first bale of pulp manufactured entirely in Arauco 3 was completed.

On September 1, 2019, our subsidiary Arauco North America, Inc, acquired the shares of Prime-Line, Inc. for a price of approximately U.S.$19.9 million. The main asset acquired consisted of a facility with three fully automated MDF moulding lines with an installed annual capacity of 135,000 m3.

In 2020, Arauco Forest Brasil and Empreendimentos Florestais Santa Cruz sold 33,749 hectares of real estate properties, including 12,544 hectares of planted forest

assets.

On May 13, 2021, our subsidiary Forestal Arauco S.A. ("Forestal Arauco") executed a master agreement, by means of which it agreed to sell to Vista Hermosa Inversiones Forestales SpA, a company controlled by BTG Inversiones Forestales Fondo de Inversión, managed by BTG Pactual Chile S.A. Administradora General de Fondos, 461 forest properties that included a total of 80,489 hectares, for a total price of U.S.$385,500,000 net of value added tax. On August 17, 2021, the conditions precedent for the closing of the aforementioned transaction were fulfilled, and we proceeded to transfer 430 properties pursuant to the master agreement, for a total price of U.S.$343,668,299 net of value added tax.

In December 2021, Arauco Forest Brasil S.A. acquired the remaining 20% participation that Stora Enso Amsterdam B.V. had in Arauco Florestal Arapoti S.A. for a price of approximately R$294.5 million (U.S.$52.5 million).

On September 27, 2022, our Board of Directors approved the decision adopted by our subsidiary Arauco Industria de México, S.A. de C.V., to carry out the construction of a new production line of MDF with an estimated investment of approximately U.S.$235 million, to be located in our industrial complex in Zitácuaro, Michoacán, Mexico. Upon completion, this project is expected to add approximately 300,000 cubic meters of annual MDF production capacity, of which 150,000 cubic meters would be melamine laminated.

On July 16, 2024, Arauco transferred all shares and interests directly held in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., and indirectly held in Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., entities that own assets primarily located in the state of Paraná, Brazil. The eucalyptus and pine forest plantations subject to the sale occupied approximately 85,000 hectares. The sale price was approximately U.S.$1.2 billion, which was paid on the transaction date and was subject to customary post-closing adjustments. The net amount received by Arauco after taxes was U.S.$971 million, resulting in a post-tax profit of U.S.$209.5 million. It is also important to note that the sale of shares and social rights did not include the industrial assets related to the panel plants in Brazil, nor other forestry assets primarily located in the state of Mato Grosso do Sul, which are associated with the "Sucuriú Project", referred below.

On March 12, 2024, Eufores S.A. and Forestal Cono Sur S.A. (affiliates of Montes del Plata) acquired all the shares and social rights of four companies owned by Global Timber Spain SLU and Global Timber International LLC in Uruguay.

The companies acquired are Taurion S.A., Taurion Asociación Agraria de Responsabilidad Limitada, Monte Fresnos S.A. and Monte Fresnos Asociación Agraria de Responsabilidad Limitada.

These companies jointly own approximately 32,000 hectares in Uruguay, of which approximately 19,000 hectares are planted with eucalyptus.

On September 24, 2024, our Board of Directors approved the construction of a pulp mill by our subsidiary Arauco Celulose do Brasil S.A. in the municipality of Inocência, State of Mato Grosso do Sul, Brazil (the "Sucuriú Project"). The total investment for the new mill is currently estimated at approximately US$4.6 billion. The mill is expected to have an annual production capacity of approximately 3.5 million air-dried metric tonnes of bleached hardwood kraft pulp ("BHKP") and to be self-sufficient in energy consumption, generating a surplus of approximately 220 megawatts of renewable energy derived from forest biomass. We currently anticipate that the mill will commence operations in the last quarter of 2027, although such timeline may be subject to change as a result of potential delays in the development of the project. We intend to finance the Sucuriú Project through a combination of debt financing, a capital increase, and available cash on hand. At the Extraordinary General Shareholders' Meeting held on October 17, 2024, our shareholders approved a capital increase of up to US$1.2 billion, of which US$300 million was paid on December 17, 2024, and US$450 million was paid on December 16, 2025.

On July 29, 2025, our subsidiary Arauco Celulose do Brasil S.A. entered into a timber purchase and sale agreement with the Brazilian company Eldorado do Brasil, covering approximately twelve million cubic meters of timber with bark. This agreement is intended to secure the forest raw material supply required for the development of the Sucuriú Project in the state of Mato Grosso do Sul, Brazil. Arauco continues to advance efforts to

consolidate access to the full timber supply necessary for the Sucuriú Project.

On January 1, 2026, Arauco do Brasil S.A. was absorbed by Arauco Indústria de Painéis S.A. through a reverse merger. The merger was implemented with the objective of simplifying intercompany processes, optimizing commercial operations, and achieving more efficient management of business activities. This merger enabled the minimization of asset transfers between companies, the reduction of accounting and tax complexity, the optimization of invoicing processes and the mitigation of operational risks.

Our principal executive offices are located at Avenida El Golf 150

, 14<sup>th</sup> Floor, Las Condes, Santiago, Chile, and our telephone number is +56-2-2461-7200. Our website is

<u>www.arauco.cl</u> or <u>www.arauco.com</u>. The contents of our website and other websites referred to herein or therein are not part of this annual report. The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the

SEC (<u>http://www.sec.gov</u>).

**ORGANIZATIONAL STRUCTURE**

We are substantially wholly-owned by Empresas Copec S.A., a public company listed on the Santiago Stock Exchange and the Chilean Electronic Stock Exchange. Empresas Copec is a holding company, the principal interests of which are in Arauco, gasoline and gas distribution, electricity, fishing and mining. See "Item 7. Major Shareholders and Related Party Transactions—Major Shareholders."

The following table sets forth our ownership interests in our subsidiaries as of December 31, 2025.

---

| | | |
|:---|:---|:---|
|  | **Country <br>of<br> incorporation** | **Total <br>stock <br>held <br>(%)** |
| Agrícola <br>Ranquillón <br>SpA<br>| Chile | 98.6430<br>|
| Agrícola <br>San <br>Carlos <br>SpA<br>| Chile | 99.9484<br>|
| Agrícola <br>Santa <br>Emilia <br>SpA<br>| Chile | 98.9484<br>|
| Agrícola <br>Siberia <br>SpA<br>| Chile | 98.6430<br>|
| Altovento SpA | Chile | 99.9484 |
| Arauco <br>Argentina <br>S.A.<br>| Argentina | 99.9801<br>|
| Arauco <br>Australia <br>Pty <br>Ltd. (1)<br>| Australia | 99.9990<br>|
| Arauco <br>Bioenergía <br>SpA<br>| Chile | 99.9990<br>|
| Arauco <br>Canada <br>Ltd.<br>| Canada | 99.9991<br>|
| Arauco <br>Celulose <br>do <br>Brasil <br>S.A.<br>| Brazil | 99.9990<br>|
| Arauco <br>Colombia <br>S.A.<br>| Colombia | 99.9983<br>|
| Arauco <br>do <br>Brasil <br>S.A. (2)<br>| Brazil | 99.9991<br>|
| Arauco Empreendimentos Florestais MS Ltda. | Brazil | 99.9991<br>|
| Arauco <br>Europe <br>Cooperatief <br>U.A.<br>| The <br>Netherlands<br>| 99.9990<br>|
| Arauco <br>Industria <br>de <br>México <br>S.A. <br>de <br>C.V.<br>| Mexico | 99.9991<br>|
| Arauco <br>Middle <br>East <br>DMCC (3)<br>| United Arab Emirates | 99.9990<br>|
| Arauco <br>North <br>America, <br>Inc.<br>| U.S.A. | 99.9991<br>|
| Arauco MS <br>Participações <br>S.A.<br>| Brazil | 99.9991<br>|
| Arauco <br>Perú <br>S.A.<br>| Peru | 99.9990<br>|
| Arauco Participações Florestais Ltda. | Brazil | 99.9991<br>|
| Arauco Industria de Paineis S.A. | Brazil | 99.9991<br>|
| Arauco Porto Brasil S.A. | Brazil | 99.9981<br>|
| Arauco <br>Ventures <br>Limited<br>| United Kingdom | 99.9990<br>|
| Arauco <br>Wood <br>(China) <br>Company <br>Limited<br>| China | 99.9990<br>|
| Arauco <br>Wood Limited<br>| United Kingdom | 99.9991<br>|
| Araucomex <br>S.A. <br>de <br>C.V.<br>| Mexico | 99.9991<br>|
| Araucomex <br>Servicios <br>S.A. <br>de <br>C.V.<br>| Mexico | 99.9991<br>|
| Consorcio <br>Protección <br>Fitosanitaria <br>Forestal <br>S.A.<br>| Chile | 56.8312<br>|
| Forestal <br>Arauco <br>S.A.<br>| Chile | 99.9484<br>|
| E2E SpA<br>| Chile | 99.9986<br>|
| Forestal <br>Cholguán <br>S.A.<br>| Chile | 98.6430<br>|
| Inversiones <br>Arauco <br>Internacional <br>Limitada<br>| Chile | 99.9990<br>|
| Investigaciones <br>Forestales <br>Bioforest <br>SpA<br>| Chile | 99.9489<br>|
| Leasing <br>Forestal <br>S.A.<br>| Argentina | 99.9801<br>|
| Lemu <br>Earth <br>SpA<br>| Chile | 96.3692<br>|
| Lemu <br>Global <br>Limited<br>| United Kingdom | 96.3692<br>|
| Lemu <br>Inc.<br>| U.S.A. | 96.3692<br>|
| Maderas <br>Arauco <br>Costa <br>Rica <br>S.A.<br>| Costa Rica | 99.9990<br>|
| Maderas <br>Arauco <br>S.A.<br>| Chile | 99.9986<br>|
| Mahal <br>Empreendimentos <br>e <br>Participações <br>S.A.<br>| Brazil | 99.9991<br>|
| Novo <br>Oeste <br>Gestão <br>de <br>Ativos <br>Florestais <br>S.A.<br>| Brazil | 99.9991<br>|
| Parque Eólico Girasol SpA. | Chile | 99.9484 |
| Parque Eólico El Jazmín SpA. | Chile | 99.9484 |
| Parque Eólico El Trébol SpA.  | Chile | 99.9484 |
| Parque Eólico Hortensias SpA. | Chile | 99.9484 |
| Parque Eólico Las Calas SpA. | Chile | 99.9484 |
| Parque Eólico Las Dalias SpA. | Chile | 99.9484 |
| Parque Eólico Las Fresias SpA. | Chile | 99.9484 |
| Parque Eólico Lavanda SpA. | Chile | 99.9484 |
| Parque Eólico Los Cardos SpA. | Chile | 99.9484 |
| Parque Eólico Tulipanes SpA. | Chile | 99.9484 |
| Servicios Aéreos Forestales Ltda. | Chile | 99.9991<br>|
| Servicios <br>Logísticos <br>Arauco <br>SpA<br>| Chile | 99.9992<br>|
| Tecverde S.A.<br>| Brazil | 91.1131<br>|
| Woodaffix<br>LLC.<br>| U.S.A. | 99.9991<br>|

---

(1) Company dissolved in February 2026.

(2) Company dissolved in January 2026.

(3) Company under ongoing liquidation.

**BUSINESS OVERVIEW**

**Business Strategy**

We base our business on the renewable bioeconomy, where wood serves as the central raw material for designing sustainable products that benefit various industries. Our operations and products aim to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Ensure business continuity through responsible forest management: We conserve integrated and resilient landscapes, ensuring their regeneration and long-term vitality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Create sustainable, carbon-storing products: Pulp, wood products, and renewable energy are part of our portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Maximize the use of renewable resources: We develop solutions that replace fossil-based materials, store carbon, and help mitigate climate change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Seize opportunities in global markets: We strengthen our competitiveness through innovation and sustainable governance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Positively impact local communities: We contribute to the social, economic, and environmental development of the areas where we operate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Adopt international standards: We ensure transparency, risk management, and compliance with the commitments we undertake.

**Domestic and Export Sales**

The following table sets forth our revenues derived from exports and domestic sales for the years indicated.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** |
|  | **2025** | **2024** | **2023** |
|  | (in <br>millions <br>of <br>U.S. <br>dollars) | (in <br>millions <br>of <br>U.S. <br>dollars) | (in <br>millions <br>of <br>U.S. <br>dollars) |
| **Export <br>Sales <br>(1)**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Bleached <br>pulp<br>| $2261<br>| $2419<br>| $1885<br>|
| &nbsp;&nbsp;&nbsp;Unbleached <br>pulp<br>| 226 | 210 | 208 |
| &nbsp;&nbsp;&nbsp;Dissolving <br>pulp<br>| 316 | 419 | 280 |
| &nbsp;&nbsp;&nbsp;Sawn <br>timber<br>| 282 | 321 | 355 |
| &nbsp;&nbsp;&nbsp;Remanufactured <br>wood <br>products<br>| 253 | 262 | 261 |
| &nbsp;&nbsp;&nbsp;Plywood<br>| 265 | 279 | 254 |
| &nbsp;&nbsp;&nbsp;Fiberboard <br>panels<br>| 329 | 346 | 369 |
| &nbsp;&nbsp;&nbsp;Other<br>| 4 | 4 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total <br>export revenue<br>| $3937<br>| $4260<br>| $3617<br>|
| **Domestic <br>Sales <br>(2)**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bleached <br>pulp<br>| $113<br>| $140<br>| $176<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbleached <br>pulp<br>| 5 | 5 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dissolving <br>pulp<br>| 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sawn <br>timber<br>| 57 | 49 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remanufactured <br>wood <br>products<br>| 27 | 18 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plywood<br>| 45 | 44 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiberboard <br>panels<br>| 1700 | 1725 | 1779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Logs<br>| 5 | 49 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electric <br>power<br>| 114 | 102 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other<br>| 82 | 154 | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total <br>domestic <br>revenue<br>| $2147<br>| $2286<br>| $2395<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue<br>| $6084<br>| $6546<br>| $6012<br>|

---

The following table sets forth a geographic market breakdown of our revenues for the years indicated.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year <br>ended <br>December <br>31** | **Year <br>ended <br>December <br>31** | **Year <br>ended <br>December <br>31** |
|  | **2025** | **2024** | **2023** |
|  | **(in <br>millions <br>of <br>U.S. <br>dollars)** | **(in <br>millions <br>of <br>U.S. <br>dollars)** | **(in <br>millions <br>of <br>U.S. <br>dollars)** |
| **Export <br>Sales <br>(1)**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Asia and Oceania<br>| $2290 | $2456 | $2056 |
| &nbsp;&nbsp;&nbsp;North <br>America<br>| 785 | 826 | 840 |
| &nbsp;&nbsp;&nbsp;Europe<br>| 398 | 514 | 400 |
| &nbsp;&nbsp;&nbsp;Central <br>and <br>South <br>America<br>| 380 | 320 | 211 |
| &nbsp;&nbsp;&nbsp;Other<br>| 84 | 144 | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total <br>export revenues<br>| $3937 | $4260 | $3617 |
| **Domestic <br>Sales <br>(2)**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Asia and Oceania<br>| - | - | - |
| &nbsp;&nbsp;&nbsp;North <br>America<br>| 1013 | 1083 | 1067 |
| &nbsp;&nbsp;&nbsp;Europe<br>| - | - | - |
| &nbsp;&nbsp;&nbsp;Central <br>and <br>South <br>America<br>| 1135 | 1203 | 1328 |
| &nbsp;&nbsp;&nbsp;Other<br>| - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total <br>domestic <br>revenues<br>| $2147 | $2286 | $2395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue<br>| $6084 | $6546 | $6012 |

---

(1) Export sales are sales in a country different from the country where the goods were produced.

(2) Domestic sales are sales in the same country where the goods were produced.

**Forestry Activity**

Radiata and taeda pine plantations in South America benefit from highly favorable climatic and soil conditions that enable them to have one of the fastest growth rates for softwood species globally. Within specific latitudinal bands in Chile and Argentina, these conditions allow radiata and taeda pine to reach harvestable volumes in significantly shorter rotation cycles than those observed in most temperate forests of the Northern Hemisphere.

Typical rotation ages for pine plantations in our operations range from approximately 18 years for pulplogs and standard sawlogs to approximately 23 years for higher-quality sawlogs. In comparison, temperate softwood forests in North America and Europe often require 18 to 45 years to produce pulplogs and between 50 and 150 years for high-quality sawn timber. These differences in biological productivity translate into significant structural advantages for South American forestry, enabling competitive fiber production with lower land requirements and shorter investment cycles.

Over recent decades, productivity gains have been supported by continuous advances in genetic improvement and silvicultural practices. Today, plantation management increasingly integrates advanced breeding programs, improved clonal material, site-specific silviculture and digital monitoring tools aimed at maximizing wood quality, productivity and resource efficiency.

Eucalyptus plantations have become a central component of fiber supply in several of the countries where we operate, including Chile, Brazil and Uruguay. The productivity of these plantations is supported by intensive genetic improvement programs, clonal propagation technologies and precision silviculture practices that optimize the interaction among genotype, site conditions and management regimes.

During the establishment phase, typically within the first and second year following planting, eucalyptus stands undergo targeted vegetation control and site-specific fertilization. Plantation management increasingly relies on data-driven monitoring systems, remote sensing and field analytics to track stand development, detect stress factors and guide operational decisions.

Integrated pest management strategies combine biological control agents, silvicultural practices and continuous monitoring to regulate pest populations and mitigate risks to plantation health.

Depending on species, site productivity and management objectives, eucalyptus plantations typically reach harvestable maturity within rotation cycles ranging from approximately 7 to 12 years. These short rotations, combined with advances in genetics, silviculture and operational technology, support highly efficient fiber production systems and contribute to the long-term sustainability and competitiveness of plantation forestry in the regions where we operate.

Throughout our history, we have had a continued commitment to the improvement of our forest management policies. We have adopted environmentally sensitive policies towards our holdings of native forests, which are protected and preserved in their entirety. Our products come from our established plantations only; we do not sell any products derived from our native forests. We conduct our forestry operations in accordance with current legislative and environmental sustainability standards. Certain of our subsidiaries have received various environmental certifications as of the date of this annual report. You can find more information about our certifications under the "Sustainability" section of our website (<u>https://www.arauco.cl/en/sostenibilidad/certificaciones/</u>).

**Forest Plantations**

As of December 31, 2025, our planted forests mainly consisted of approximately 52.3% eucalyptus and 45.8% radiata, taeda and elliottii pine. Radiata, taeda and elliottii pine have a rapid growth rate and a short harvest cycle compared to many other commercial softwoods. These pine species are sufficiently versatile for both the production of forestry and timber and the production of long-fiber pulp for sale to manufacturers of paper and packaging. Eucalyptus is used to produce short-fiber pulp for sale to manufacturers of paper and tissue.

We seek to manage our forestry resources seeking to ensure that the annual growth of our forest is equal to or greater than the volume of resources harvested each year. In 2025, we planted a total of 124,518 hectares and harvested a total of 44,637 hectares in Chile, Argentina, Brazil and Uruguay.

Our planted radiata pine and eucalyptus forests located in central and southern Chile, are within close proximity to our major production facilities. As of December 31, 2025, we owned approximately 1.0 million hectares of land in Chile, of which approximately 607 thousand hectares are forest plantations.

As of December 31, 2025, we owned approximately 264,111 hectares of forest and other land in Argentina, approximately 59,790 hectares of forest and other land in Brazil and approximately 111,438 hectares of forest and other land that Montes del Plata owns in Uruguay. Of the total land we own in Uruguay through the Montes del Plata joint operation, 62% is planted with eucalyptus (mainly dunnii with 75%, and other species with 25%).

Of the total land we own in Argentina, Brazil and Uruguay (through Montes del Plata), approximately 91,532 hectares of land are planted with taeda pine and elliottii pine, both species of softwood that have a growth rate similar to that of radiata pine, and 354,329 hectares with eucalyptus. The balance includes plantations of other species of trees, land to be planted, protected areas and native forests.

The following table sets forth the number of hectares and types of uses of our land holdings and rights, as of December 31, 2025.

---

| | | |
|:---|:---|:---|
|  | **As <br>of <br>December <br>31, <br>2025** | **As <br>of <br>December <br>31, <br>2025** |
|  | **Total**  | **Distribution** |
|  | **(in hectares)** | **(percentage)** |
| Pine <br>plantations <br>(1)<br>|  |  |
| &nbsp;&nbsp;&nbsp;0-5 years<br>| 121640 | 7%<br>|
| &nbsp;&nbsp;&nbsp;6-10 <br>years<br>| 125123 | 7%<br>|
| &nbsp;&nbsp;&nbsp;11-15 <br>years<br>| 91502 | 5%<br>|
| &nbsp;&nbsp;&nbsp;16-20 <br>years<br>| 81270 | 5%<br>|
| &nbsp;&nbsp;&nbsp;21+ <br>years<br>| 71402 | 4%<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal**<br>| **490937**  | **27%**  |
| Eucalyptus plantations<br>|  |  |
| &nbsp;&nbsp;&nbsp;0-5 years<br>| 364850 | 20%<br>|
| &nbsp;&nbsp;&nbsp;6-10 <br>years<br>| 110934 | 6%<br>|
| &nbsp;&nbsp;&nbsp;11-15 <br>years<br>| 52753 | 3%<br>|
| &nbsp;&nbsp;&nbsp;16-20 <br>years<br>| 9848 | 1%<br>|
| &nbsp;&nbsp;&nbsp;21+ <br>years<br>| 21419 | 1%<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal**<br>| 559803 | **31%**  |
| Plantations <br>of <br>other <br>species<br>| 20604 | 1%<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal <br>of <br>plantations**<br>| 1071345 | **60%**  |
| Land <br>for <br>plantations<br>| 113154 | 6%<br>|
| Land <br>for <br>other <br>uses <br>(2)<br>| 612975 | 34%<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total <br>(3)**<br>| **1797474**  | **100%**  |

---

(1) All years are calculated from the date of planting.

(2) Includes roads, firebreaks, native forests and yards.

(3) Includes 100% of the plantations we own in Chile, 100% of the plantations we own in Argentina, 50% of the plantations we own in Uruguay through the Montes del Plata joint operation and 100% of the plantations we own in Brazil. Also includes 335,608 hectares for which we have the right to harvest but do not own the land, of which 1 hectare is in Chile, 17 hectares are in Argentina, 293,783 hectares are in Brazil and 41,808 hectares are in Uruguay.

**Land Acquisition and Afforestation**

As of December 31, 2025, we owned forest plantations in Chile, Brazil, Argentina, and via our joint operation Montes del Plata, in Uruguay. Our total land assets have increased from fewer than 170,000 hectares in 1980 to 1.8 million hectares as of December 31, 2025. In the five years ending December 31, 2025, we purchased 10,797 hectares of land in Chile and 16,299 hectares in Uruguay, through our 50% share in the Montes del Plata joint operation. For more information regarding our material acquisitions, see "Item 4. Information on our Company—Description of the Business—History".

We expect to acquire or to constitute rights over additional land if we have the possibility to do so at a desired price or location. There can be no assurance that we will be able to acquire land or rights at a desired price or in a desired location.

We plan to continue our policy of supplementing our pulplog production with purchases from domestic third parties. We believe that this policy is economically efficient, given the significant quantities of pulplog available from third parties and our increasing proportion of sawlogs yielded from our plantations. We will seek to ensure that the aggregate of our existing plantations, the land that we own which we intend to afforest and the volumes that we purchase from third-parties will be sufficient to satisfy our anticipated future demand for sawlogs and pulplogs.

**Forest Management**

For our pine plantations, our forestry management activities seek to increase our production of sawlogs through advanced genetic techniques, planting and site preparation procedures, thinning and pruning. Managed forests can produce trees of larger diameter and, if pruned, a higher proportion of clear wood, which generally commands a higher price than knotted wood. Although some land is not suitable for the production of pruned logs, as of December 31, 2025, approximately 36% of our pine forests in Chile were conducive to clear wood production.

For our eucalyptus plantations, our forestry management activities seek to increase the amount of fiber production per hectare through advanced genetic techniques and planting and site preparation procedures. Eucalyptus is more expensive to plant than pine; however, after planting, eucalyptus requires minimal forest management, yields more fiber per hectare and has a shorter growth cycle and greater wood density than pine, resulting in a greater amount of pulp production per hectare.

As of December 31, 2025, we had 6 nurseries in Chile, Argentina, Brazil and Uruguay (through Montes del Plata), in which we grow seedlings using seeds and cuttings from genetically selected trees. To achieve higher quality trees and an increased growth rate, we apply strict selection criteria to the trees from which seedlings are produced. We then plant the seedlings manually or mechanically. Depending upon the species of tree to be planted and the nutrient and physical characteristics of the soil, we may also undertake a certain amount of ground preparation before planting. Our other principal forest activities are thinning, pruning and harvesting.

Thinning, or cutting inferior trees from the plantation, occurs when commercially necessary. Thinned trees are used in pulp production or, depending on the quality of the land, as sawlogs. Commercial thinning occurs when trees are 8 to 14 years old and results in an average reduction of the number of trees per hectare from the original stocking of 1,000 and 1,333, depending on the productivity of the land, to approximately 700 in the first thinning (8 to 9 years) and to approximately 450 in the second thinning (12 to 14 years).

Thinning benefits us for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the higher number of young trees ensures that they protect each other from different climatic circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· it leaves only the highest quality trees to be harvested; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· removing inferior trees contributes to improved forest health.

Pruning involves removing branches, the source of knots, resulting in a high-quality clear wood sawlog of 5.8 meters from each tree, which is conducted three times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· when trees are five to seven years old,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· one year later, when trees are six to eight years old, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· one year later, when trees are seven to nine years old.

As eucalyptus trees are used for our pulp operations, these plantations are neither thinned nor pruned because there is no need to do so.

Harvesting timber involves felling trees, removing branches from the logs, cutting the logs into appropriate sections and loading those logs onto trucks for transport to sawmills, panel mills or pulp mills. We use the lower section of the radiata pine, comprising the first 7 to 12 meters, in sawmills and plywood mills. We use the mid-section of the radiata pine, comprising, on average, the next 8 to 13 meters, in either sawmills or pulp mills, depending on the diameter and quality of the pine. We use the top section of the tree for pulp, MDF and PBO production.

We monitor product demand and our current inventory levels, and we match harvests from sections of our plantations that will provide the optimal yield given our product requirements. This process involves the use of sophisticated research models and close communication between our different operating areas to ensure that the correct amounts of timber of the required characteristics are supplied. We replant as soon as practicable after harvesting, with an average period between harvesting and replanting of one year.

The following table illustrates, on a hectare basis, the extent of our thinning, pruning and harvesting activities in Chile during the periods indicated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** | **Year <br>ended <br>December <br>31,** |
|  | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|  | **(in hectares)** | **(in hectares)** | **(in hectares)** | **(in hectares)** | **(in hectares)** | **(in hectares)** |
| Thinning<br>|  | 7,036 |  | 5,918 |  | 2,421 |
| Pruning<br>|  | 17,295 |  | 21,172 |  | 21,048 |
| Harvesting<br>|  | 29,284 |  | 32,698 |  | 30,392 |

---

We manage our forest activities, but we also hire independent contractors to perform many of our operations, including planting, maintenance, thinning, pruning, harvesting, transportation and access road construction. As of December 31, 2025, we had arrangements with 124 independent contractors that employed 8,602 workers in Chile. Many of these contractors have long-standing relationships with us, but we award the contracts based on competitive bids. We manage our forests both internally and via independent contractors. We developed a program aimed to increase the mechanization of our harvesting operations.

Our plantations are interspersed with native forests and farmland, and, as a result, we believe they are naturally protected against the spread of certain pests and diseases. In addition, we have strategies to protect our forests from pest and disease threats. In recent years, radiata pine plantations in Chile have been affected by two main problems: 1) the insect *Sirex noctilio*, a wasp which attacks and kills stressed trees, and 2) the fungus *Fusarium circinatum* which causes plant mortality during the first year after planting. To mitigate the effects of the *Sirex noctilio*, we have implemented a biological control program under which we have released into the affected forests natural enemies of the *Sirex noctilio*, including the *nematode*, the *Deladenus siricidicola* and the *parasitoid Ibalia leucospoide and Megarhyssa nortoni*. To reduce damage by *Fusarium circinatum,* we identified the main sources of the fungus inoculum in the nursery and implemented a new protocol to manage the disease and reduce plant mortality.

**Forest Fire Control**

We operate an extensive fire control system to reduce fire damage to our forests in Chile. Our fire control system consists primarily of a system of automated spotter towers, cameras and drones from which information regarding direction of any fire observed is sent to a central command post, manned 24 hours a day during the summer months, where the fire's exact location is determined, and an appropriate ground and/or aerial response is formulated. The focus of this operation is to detect the fires as soon as possible and to reach the location in less than 20 minutes in order to prevent fires from spreading. Our resources include, among others, Air Crane and Super Puma helicopters, land and heliborne professional brigades and a Mobile-App designed to provide forestry brigades with the best route to fight fires in the shortest time possible. Also, when feasible, we work in firefighting activities with governmental authorities, other fire control organizations and local communities.

During the 2021-2022 season, 7,566 hectares of our forest plantations were adversely affected by forest fires. The estimated fair value of our plantations adversely affected by the forest fires in the 2021-2022 season was U.S.$15.0 million, representing 0.7% of the fair value of our total forest plantations and 0.09% of our total assets, in each case under IFRS Accounting Standards.

During the 2022-2023 forest fire season, approximately 47,000 hectares of our productive forest plantations in Chile were adversely affected by fires that occurred in early 2023 in the regions of Maule, Ñuble, Araucanía, Biobío and Los Ríos due to a combination of multiple irresponsible and/or intentional actions by third parties and extreme unfavorable weather conditions such as high temperatures, low humidity and high winds.

During the 2023-2024 season,

815 hectares of our forest plantations were adversely affected by forest fires.

During the 2024-2025 forest fire season, approximately 4,552 hectares of our forest plantations were adversely affected by fires.

As of December 31, 2025, we recognized a forest fire loss of U.S.$9.8 million, net of insurance compensation, for the fires in Chile. As of the date of this annual report, during the 2025-2026 forest fire season, approximately 6,200 hectares of our forest plantations had been materially and adversely affected by fires.

For more information regarding certain risks to our forests presented by disease and fire, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Disease or fires could affect our forests and manufacturing processes and, in turn, adversely affect our business, financial condition, results of operations and cash flows."

**Forest Production**

We harvested 17.9 million cubic meters of logs during the year ended December 31, 2025, consisting of 6.1 million cubic meters of sawlogs, 5.0 million cubic meters of pine pulplogs and 6.7 million cubic meters of eucalyptus pulplogs and other logs. During 2025, our sawmills and panel mills used 6.0 million cubic meters of sawlogs. We also sold 37.3 thousand cubic meters of sawlogs to unaffiliated domestic sawmills during 2025.

A log merchandising facility located at the same site as our Horcones I sawmill (Chile) optimizes, cuts and classifies wood destined for our plywood facility, sawmills or pulp mills with an annual processing capacity of 1.5 million cubic meters of logs per year. The Nueva Aldea complex (Chile) also includes a log merchandising facility, with an annual processing capacity of 2.6 million cubic meters of logs per year.

Our forests are subject to various risks, including disease or fires. The forest plantations affected by the fires had insurance coverage, with their corresponding deductibles and limits.

For more information regarding certain risks to our forests presented by disease and fire, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Disease or fires could affect our forests and manufacturing processes and, in turn, adversely affect our business, financial condition, results of operations and cash flows."

**Pulp** 

We believe that we were one of the world's largest producers of bleached and unbleached softwood market pulp in terms of production capacity in 2025. For the year ended December 31, 2025, our worldwide pulp sales were U.S.$2.9 billion, representing 48.0% of our consolidated revenues for such year.

Pulp obtained from wood fibers is mainly used in the manufacture of printing and writing paper, hygienic and sanitary paper, board and packaging. Whether a specific kind of pulp is suitable for a particular end-use depends not only on the type of wood but also on the process used to transform the wood into pulp. Pulp made from softwoods, such as radiata pine, has long fibers and it is used to provide strength to paper products. Bleached hardwood pulp is used primarily for printing and writing papers and tissue. Unbleached pulp is used primarily for linerboard (a packaging material). Pulp made from hardwoods, such as eucalyptus, has short fibers and is used in combination with long fiber in manufacturing paper products.

We use a chemical process, known as the kraft process, in our pulp mills in Chile, Argentina and Uruguay. The raw material is in the form of pulplogs and chips, which are used in the production process to produce pulp. The pulplogs are first debarked and chipped. The chips are then screened, mixed and cooked with chemicals to separate the bulk of the lignin from the wood fibers. After the material is screened and washed, it is then passed to high-density tanks. For bleached pulp, the next step is a bleaching process using chemicals, primarily chlorine dioxide. At all of our pulp mills, the bleaching process is preceded by an oxygen delignification stage. Then, the fibers are subject to a final stage where a sheet is formed and subsequently dried and baled to be transported to customers. The lignin and bark produced during this process are used as fuel in the boilers to produce steam, providing heat and generating electricity for the mill. Our bleached pulp is bleached to a 90+ brightness level, as measured by the ISO test procedure, which is one of the industry's measurement methods. In the case of dissolving pulp, the process aims to obtain a pulp with a high cellulose content with a specific range of viscosity. The process is similar to the aforementioned kraft process with two additional key stages: (i) a stage before cooking called prehydrolysis, in which steam is used to degrade and remove hemicelluloses from the chips, obtaining a pulp with a high cellulose content, and (ii) an ozone stage in the bleaching sequence that allows for better control of the viscosity of the pulp.

**Pulp Mills**

As of December 31, 2025, we owned four producing pulp mills in Chile, one in Argentina, and jointly owned one in Uruguay with Stora Enso, with an aggregate installed annual production capacity of approximately 5.1 million tonnes. This figure includes 50% of the installed annual production capacity of our Montes del Plata joint operation in Uruguay. Our five pulp mills, and the 50% volume from our interest in the Montes del Plata mill, produced 4.3 million tonnes of bleached pulp and 0.3 million tonnes of unbleached pulp in 2025.

All our pulp mills in Chile, Argentina and Uruguay are certified under international standards. You can find more information about our certifications under the "sustainability" section of our website (<u>https://www.arauco.cl/en/sostenibilidad/certificaciones/</u>).

The following table sets out kraft pulp installed capacity and production in thousands of tonnes for each of the years indicated.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Production** | **Production** | **Production** | **Production** | **Production** |
| <br>**Mill**<br>| <br><br>**Product** | <br>**Installed** <br>**Capacity**  | **2025** | **2024** | **2023** | **2022** | **2021** |
| **Chile**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Arauco 1(1)<br>| BHKP | - | - | - | - | 1 | 225 |
| &nbsp;&nbsp;&nbsp;Arauco <br>2<br>| BSKP | **540**  | 482 | 503 | 479 | 469 | 486\* |
| &nbsp;&nbsp;&nbsp;Arauco <br>3 | BHKP | **1560**  | 1390 | 1329 | 803 | - | - |
| &nbsp;&nbsp;&nbsp;Nueva <br>Aldea<br>| BHKP | **520**  | 496 | 493 | 486 | 481 | 515 |
| &nbsp;&nbsp;&nbsp;Nueva <br>Aldea<br>| BSKP | **520**  | 525 | 500 | 486 | 483 | 481 |
| &nbsp;&nbsp;&nbsp;Valdivia<br>(2)<br>| DP/BHKP | **550**  | 429 | 421 | 296 | 324 | 436 |
| &nbsp;&nbsp;&nbsp;Constitución<br>| UKP | **355**  | 289 | 296 | 215 | 288 | 309 |
| &nbsp;&nbsp;&nbsp;Licancel <br>(3)<br>| UKP | **-**  | - | - | 87 | 148 | 150 |
| **Uruguay**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Montes del Plata (4)<br>| BHKP | 720 | 718 | 731 | 719 | 715 | 749 |
| **Argentina**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Puerto <br>Esperanza<br>| FLUFF/BSKP | 350 | 299 | 270 | 257 | 266 | 298 |
| **Total**<br>|  | **5115**  | 4628 | 4544 | 3828 | 3175 | 3649 |

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(\*) Represents bleached and unbleached production volume.

(1) In January 2022, after 50 years in operation, Line 1 of the Arauco mill was permanently shut down as contemplated by the MAPA project and in accordance with the environmental permit.

(2) In May 26, 2022 a fire broke out in the drying machine of our Valdivia mill which forced us to stop operations until September 2022, when we partially started operations again thanks to a temporary repair. We stopped operations in the mill in April 2023, in order to permanently repair the damaged dryer. In August 2023, the mill started normal operations once again.

(3) Licancel mill indefinitely suspended operations in August 2023.

(4) Considers 50% of Montes del Plata.

The following is a description of each of our current operating pulp mills in Chile, Argentina and Uruguay as of December 31, 2025.

*Chile*

*Arauco Mill*

*Arauco 2.* 

Arauco line 2 is located in the Biobío Region and was completed in 1991. Arauco 2 produces elementary chlorine-free pulp, which does not use chlorine gas. Elementary chlorine-free pulp is also produced by most of our competitors in each of the world's major pulp producing regions. Although the mill mainly produces bleached softwood kraft pulp, it could also produce unbleached softwood kraft pulp.

*Arauco 3.* 

Arauco line 3 is located in the Biobío Region and produced its first bale of pulp in January 2023. The mill was designed considering an elementary chlorine free bleaching process and seeking to minimize the use of water per tonne, minimizing gaseous and liquid emissions to the environment, and optimizing the use of energy to maximize power energy surplus to national net based in biomass.

*Constitución Mill*

. The Constitución mill is located in the Maule Region, Chile, and we believe ranks among the largest unbleached softwood market pulp mills in the world. The unbleached pulp produced in this mill does not use any chlorine in its production process.

*Valdivia Mill*

. The Valdivia mill commenced operations in February 2004. The Valdivia mill is located in the Los Ríos Region of Chile, an area with significant radiata pine and eucalyptus plantations. The Valdivia mill is equipped to produce elementary chlorine-free pulp. In June 2020, we completed the "Dissolving Pulp Project" that allowed the Valdivia mill to produce dissolving pulp, and also to switch back to producing paper-grade bleached hardwood pulp when required. See "Item 4. Information on our Company— Description of Business—History" for further information on the Valdivia mill.

*Nueva Aldea Mill.* 

Located in the Ñuble Region of Chile, this mill was completed in 2006, and its production capacity consists in equal parts to bleached softwood kraft pulp and bleached hardwood kraft pulp. The Nueva Aldea mill is equipped to produce elementary chlorine-free pulp.

*Argentina*

*Puerto Esperanza Mill*

. Arauco Argentina's softwood pulp mill is located in the Province of Misiones. The installed production capacity of the mill consists of fluff pulp and bleached softwood pulp.

*Uruguay*

*Montes del Plata.* 

Located in Punta Pereira in the department of Colonia, Uruguay, the Montes del Plata pulp mill began operations in June 2014.

On December 2017, the environmental authorities of Uruguay (Ministry of Environment) approved an increase in the annual production capacity. Between 2017 and 2020 we made some operational improvements that led to an increase in the annual capacity of this mill, which together with high levels of efficiency during the year 2021 allowed it to reach a production of approximately 1.5 million tonnes. Of this total annual capacity, we own 50% due to our joint operation with Stora Enso.

**Cash Cost of Bleached Softwood Kraft Pulp Delivered to China**

Based on information published by Hawkins Wright Ltd., we believe that in 2025 our total delivered cash cost for bleached softwood kraft pulp produced in Chile and delivered to China was lower than the average total delivered cash cost for bleached softwood kraft pulp produced in certain other regions of the world and delivered to China, mainly due to lower wood and labor costs, as well as lower transportation costs from Chile to China.

The following table sets forth (i) our cash costs for bleached softwood kraft pulp produced by Arauco in Chile and delivered to China and (ii) based on information published by Hawkins Wright Ltd., estimated average cash costs for bleached softwood kraft pulp produced in the regions specified below and delivered to China.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cash Production Costs of Bleached Softwood Kraft Pulp Delivered to China**  | **Cash Production Costs of Bleached Softwood Kraft Pulp Delivered to China**  | **Cash Production Costs of Bleached Softwood Kraft Pulp Delivered to China**  | **Cash Production Costs of Bleached Softwood Kraft Pulp Delivered to China**  | **Cash Production Costs of Bleached Softwood Kraft Pulp Delivered to China**  | **Cash Production Costs of Bleached Softwood Kraft Pulp Delivered to China**  |
|  | **Arauco<sup>(1)</sup>** | **British<br>Columbia <br>Coast** | **West <br>Canada <br>Interior** | **United <br>States** | **Sweden** | **Finland** |
|  | (in U.S.$ per tonne) | (in U.S.$ per tonne) | (in U.S.$ per tonne) | (in U.S.$ per tonne) | (in U.S.$ per tonne) | (in U.S.$ per tonne) |
| Wood <br>| 232 | 292 | 275 | 220 | 384 | 402 |
| Chemicals <br>| 78 | 80 | 76 | 94 | 78 | 81 |
| Labor and other cash costs<sup>(2)</sup> <br>| 172 | 243 | 232 | 252 | 143 | 144 |
| Operating costs <br>| 482 | 615 | 583 | 566 | 605 | 627 |
| Transportation<sup>(3)</sup> <br>| 41 | 77 | 116 | 85 | 57 | 57 |
| Marketing and sales <br>| 4 | 32 | 16 | 21 | 9 | 8 |
| Total delivered cash cost <br>| 528 | 724 | 715 | 672 | 671 | 692 |

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*Source:* 

Arauco (for our cash costs referred in the table) and Hawkins Wright Ltd. ("The Outlook for Market Pulp Demand, Supply, Costs and Prices", December 2025)

(1) Includes cash costs (defined as production cost without depreciation) only for Arauco's bleached softwood kraft pulp produced in Chile and delivered to China.

(2) Other cash costs include energy, maintenance costs and other mill costs.

(3) Includes transportation cost only for bleached softwood kraft pulp delivered to China (and not other markets).

**Sales**

Estimated installed bleached kraft pulp capacity worldwide for the year ended December 31, 2025 was 82.7 million tonnes according to Hawkins Wright Ltd. We believe that our production capacity represented approximately 5.6% of the worldwide market for bleached kraft pulp in 2025. During the same year, we exported 99.1% of our bleached pulp (in terms of tonnes sold), mainly to customers in Asia and Western Europe.

Unbleached softwood pulp is mainly produced by integrated manufacturers, and there are a few companies that sell market pulp like us. "Market pulp" is pulp sold to manufacturers of paper products, as opposed to pulp produced by an integrated paper producer for use in its own paper production facilities. With a worldwide installed capacity of unbleached softwood kraft pulp of 3.2 million tonnes for 2025, according to Hawkins Wright Ltd., we are the world's largest single producer of unbleached softwood market pulp in terms of production capacity, with approximately 11.2% of the total market in 2025. During the same year, 97.8% of our total unbleached market pulp sales (in terms of tonnes sold) consisted of export sales. While for the last eight years Asia has been our principal export market for unbleached market pulp, we continually seek niche markets for our products in Western Europe and the United States.

The following table sets forth, by region, our sales volume to unaffiliated third parties of bleached and unbleached pulp for the years indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **For <br>the <br>Year <br>Ended <br>December <br>31,** | **For <br>the <br>Year <br>Ended <br>December <br>31,** | **For <br>the <br>Year <br>Ended <br>December <br>31,** |
|  | **2025**  | **2024**  | **2023** |
|  |  | (in <br>tonnes) |  |
| Bleached <br>Pulp<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Asia <br>and <br>Oceania<br>| 3277460 | 3153257 | 2670497 |
| &nbsp;&nbsp;&nbsp;Europe<br>| 622108 | 678755 | 562051 |
| &nbsp;&nbsp;&nbsp;North <br>and <br>South <br>America<br>| 419036 | 357873 | 273773 |
| &nbsp;&nbsp;&nbsp;Other<br>| - | 77 | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total<br>| 4318604 | 4189962 | 3506672 |
| Unbleached <br>Pulp<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Asia <br>and <br>Oceania<br>| 245014 | 221081 | 259357 |
| &nbsp;&nbsp;&nbsp;Europe<br>| 7188 | 8371 | 3726 |
| &nbsp;&nbsp;&nbsp;North <br>and <br>South <br>America<br>| 50366 | 49012 | 40649 |
| &nbsp;&nbsp;&nbsp;Other<br>| 2295 | 5261 | 2398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total<br>| 304863 | 283725 | 306130 |

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While there are many grades and varieties, pulp is considered a commodity that is marketed primarily based on price, quality and logistical service. In marketing our pulp, we seek to establish long-term relationships with end users of pulp by providing a competitively priced, high-quality, consistent product and excellent service. The quality of our pulp derives from the high standards of production that we maintain at our mills and our use of a single species of tree, in contrast to pulp producers in some of the world's major softwood pulp producing regions that mix different species, depending on availability and seasonality. Our bleached pulp is marketed under the brand names "Arauco" and "Arauco Argentina" and our unbleached pulp is marketed under the brand name "Celco". Our dissolving pulp is marketed under the brand name "Arauco Create". Our 50% share of the pulp produced from Montes del Plata is marketed under the brand name "Arauco." Our forestry products are mainly sawlogs, pulplogs, chips and others. As a result of our forest management policies and the increasing maturity of our plantations, our plantations are yielding increasing volumes of forestry products, particularly clear wood. As the volume of clear wood has grown, we have broadened our range of forestry products.

Prices for bleached kraft market pulp produced from radiata pine and eucalyptus normally fluctuate depending on prevailing world prices, which historically have been cyclical. The fluctuations generally depend on worldwide demand, world production capacity, business strategies adopted by major forestry, pulp and paper producers, the availability of substitutes and the relative strength of the U.S. dollar. Prices for dissolving pulp normally fluctuate depending on similar variables as those that affect bleached kraft pulp, such as worldwide demand for, and world production capacity of, dissolving pulp. Additionally, dissolving pulp prices depend on dynamics caused by the price difference between paper-grade pulp and dissolving pulp mainly due to the fact that a significant portion of the worldwide dissolving pulp production capacity comes from mills which also have the capacity to switch from producing paper-grade pulp to dissolving pulp, and vice versa. See "Item 5. Operating and Financial Review and Prospects—Management's Discussion and Analysis of Financial Conditions, Results of Operations and Cash Flows—Overview" and "—Pulp Prices" and "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Fluctuations in market price for our products could adversely affect our financial condition, results of operations and cash flows."

The following table sets forth our average bleached and unbleached pulp prices per tonne for each quarter, of the years indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
|  | (U.S.$ per tonne) | (U.S.$ per tonne) | (U.S.$ per tonne) |
| Bleached Pulp<sup>(1)</sup><br>|  |  |  |
| &nbsp;&nbsp;&nbsp;1Q<br>| 645 | 701 | 850 |
| &nbsp;&nbsp;&nbsp;2Q<br>| 667 | 756 | 664 |
| &nbsp;&nbsp;&nbsp;3Q<br>| 606 | 736 | 601 |
| &nbsp;&nbsp;&nbsp;4Q<br>| 595 | 660 | 651 |
| Unbleached Pulp<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;1Q<br>| 687 | 730 | 720 |
| &nbsp;&nbsp;&nbsp;2Q<br>| 678 | 711 | 642 |
| &nbsp;&nbsp;&nbsp;3Q<br>| 607 | 705 | 635 |
| &nbsp;&nbsp;&nbsp;4Q<br>| 610 | 691 | 689 |

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(1) Includes bleached kraft pulp and dissolving pulp.

In accordance with customary pulp market practice, we do not have long-term sales contracts with our customers (except for a few limited cases); rather, we maintain long-standing relationships with our customers with whom we periodically reach agreements on specific volumes and prices. We have a diversified customer base located throughout the world and totaling, as of December 31, 2025, more than 305 customers. As of December 31, 2025, we employed 7 sales agents to represent us in more than 44 countries. We manage this worldwide sales network from our headquarters in Chile.

Additionally, and as part of the business activities contained within our pulp business segment, we sell certain forestry products to third parties. The following table sets forth, by category, forestry product sales to unaffiliated third parties for each of the years indicated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** |
|  | (in thousands of cubic meters) | (in thousands of cubic meters) | (in thousands of cubic meters) | (in thousands of cubic meters) | (in thousands of cubic meters) |
| Sawlogs<br>| 37 | 530 | 1066 | 1263 | 1431 |
| Pulplogs<br>| 130 | 848 | 1068 | 1319 | 1242 |
| Chips<br>| - | - | - | - | 34 |
| Others<br>| 522 | 2638 | 1945 | 1281 | 1773 |

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**Energy**

We utilize renewable fuels such as forest biomass sub-products in power plants that cogenerate the steam and electricity required for our manufacturing operations, thus reducing greenhouse emissions. Biomass co-generation allows for high thermal efficiency, approaching 80% in some cases. In addition to meeting our energy needs, we generate a significant amount of surplus power in Chile delivered to the SEN, distributing electrical power throughout Chile´s central and southern regions. In Uruguay, biomass sub- products from the Montes del Plata pulp mill also cogenerate the steam and electricity to meet our energy needs, and surplus power is delivered to the Uruguayan power grid.

The following table sets forth, by country and mill, our energy producing facilities and their annual installed capacities, maximum generation, average consumption and surplus power as of December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Country/Mill**<br>| **Installed**<br>**Capacity**<br>**(MW)** | **Maximum**<br>**Generation**<br>**(MW)** | **Average**<br>**Consumption**<br>**(MW)** | **Surplus <br>power**<br>**delivered**<br>**to <br>Power <br>Grid**<br>**(MW)** |
| Chile:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;Arauco<br>| 425 | 300 | 155 | 145 |
| &nbsp;&nbsp;&nbsp;Constitución<br>| 40 | 30 | 22 | 8 |
| &nbsp;&nbsp;&nbsp;Cholguán<br>| 29 | 28 | 15 | 13 |
| &nbsp;&nbsp;&nbsp;Licancel<sup>(1)</sup><br>| - | - | - | - |
| &nbsp;&nbsp;&nbsp;Valdivia<br>| 140 | 115 | 54 | 61 |
| &nbsp;&nbsp;&nbsp;Horcones <br>(gas/diesel)<br>| 24 | 24 | - | 24 |
| &nbsp;&nbsp;&nbsp;Nueva <br>Aldea <br>I<br>| 30 | 28 | 14 | 14 |
| &nbsp;&nbsp;&nbsp;Nueva <br>Aldea <br>II <br>(diesel)<br>| 10 | 10 | - | 10 |
| &nbsp;&nbsp;&nbsp;Nueva <br>Aldea <br>III<br>| 136 | 100 | 63 | 37 |
| &nbsp;&nbsp;&nbsp;Bioenergía <br>Viñales<br>| 41 | 41 | 9 | 32 |
| Total <br>Chile<br>| 875 | 676 | 332 | 344 |
| Uruguay:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;Montes <br>del <br>Plata <br>(2)<br>| 90 | 90 | 40 | 50 |
| Total <br>Uruguay<br>| 90 | 90 | 40 | 50 |
| Argentina:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;Piray<br>| 38 | 30 | 16 | 15 |
| &nbsp;&nbsp;&nbsp;Puerto <br>Esperanza<br>| 47 | 47 | 39 | - |
| Total <br>Argentina<br>| 85 | 77 | 55 | 15 |
| Brazil:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;Jaguariaíva <br>solar <br>plant<br>| 1 | 1 | 1 | - |
| Total <br>Brazil<br>| 1 | 1 | 1 | - |
| **Total** | 1051 | 844 | 428 | 409 |

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(1) Licancel mill indefinitely suspended operations in August 2023.

(2) Considers 50% of our Montes del Plata joint operation

As of December 31, 2025, we had registered five co-generation power plants in Chile as greenhouse emission reduction project activities under the Clean Development Mechanism ("CDM") of the Kyoto Protocol. Three of them were registered in 2006 (Trupán, Nueva Aldea (first phase) and Nueva Aldea (second phase)); a fourth plant was registered in 2009 (the Valdivia biomass power plant); and the fifth one was registered in 2011 (the Horcones power plant expansion project). These power plants generate electricity through forestry biomass (forestry and wood industrial sub-products, including the wood pulp by-product called "black liquor"). This renewable carbon-neutral fuel allows the facilities to decrease their reliance on fossil-fuel intensive grid electricity.

We were the first Chilean forestry company to issue Certificates of Emission Reductions ("CERs" or "Carbon Credits") under the CDM of the Kyoto Protocol. Between 2007 and 2025, we contributed 9.65% of total carbon credits in the energy generation from the residual biomass projects portfolio registered worldwide in accordance with the CDM standard. This portfolio of initiatives represents a net issuance of 5.5 million CERs under our CDM projects.

In 2025, we received an issuance of CERs under the CDM; however, no sales commitments were secured for this inventory. This represents the last certificate issuance under the CDM framework for Arauco. Moving forward, we are transitioning all our CDM-registered projects to the Article 6.4 mechanism of the Paris Agreement, for which all projects are eligible, and the transition process is underway.

The following table shows the volumes of certificates issued under the CDM and sold in each of the years indicated:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** | **2021** | **2021** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| CERs issued (net of the commission paid to United Nations Framework Convention on Climate Change)<br>|  | 987.3 |  | - |  | - |  | - |  | 139.0 |
| CERs sold or donated<br>|  | - |  | - |  | - |  | 267.7 |  | 1,050.0 |

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**Wood Products**

We produce panels (fiberboard and particleboard), sawn timber (green, kiln-dried lumber and flitches), remanufactured wood products and plywood. For the year ended December 31, 2025, our sales of wood products totaled U.S.$3.0 billion, representing 48.6% of our consolidated revenues for such year. We sell our wood products primarily to customers in North America, Central and South America and Asia and Oceania.

The following table sets forth our wood products sales to unaffiliated third parties for each of the years indicated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** |
|  | (in thousands of cubic meters) | (in thousands of cubic meters) | (in thousands of cubic meters) | (in thousands of cubic meters) | (in thousands of cubic meters) |
| Panels (fiberboard and particleboard) <br>| 4946 | 5148 | 4933 | 5465 | 6127 |
| Sawn timber <br>| 1277 | 1416 | 1534 | 1650 | 1803 |
| Remanufactured wood products <br>| 399 | 393 | 352 | 458 | 447 |
| Plywood <br>| 526 | 554 | 474 | 529 | 551 |
| Total <br>| 7148 | 7511 | 7293 | 8102 | 8928 |

---

As of December 31, 2025, we owned and operated two panel mills, five sawmills and two plywood mills in Chile; two panel mills and one sawmill in Argentina; four panel mills in Brazil; two panel mills in Mexico, five panel mills in the United States and two panel mills in Canada. Our total installed annual production capacity of fiberboard panels and plywood as of December 31, 2025 was approximately 7.0 million cubic meters. We operate our sawmills in coordination with our forestry and sales operations, since our sawn timber is generally produced in accordance with customer specifications.

As of December 31, 2025, we also owned and operated five remanufacturing facilities, four in Chile and one in Argentina. These facilities produced 361 thousand cubic meters of remanufactured wood products in 2025. See "Item 4. Information on our Company—Description of Business—History." for a description of acquisitions that have resulted in the consolidation of our wood products business in Chile, North America, Argentina, Brazil and Mexico.

Our wood products mills are certified under international standards. You can find more information about our certifications under the "sustainability" section of our website (<u>https://www.arauco.cl/en/sostenibilidad/certificaciones/</u>).

The following tables set our installed capacity for Solid Wood (sawn timber, remanufactured wood products and plywood), and Panels (fiberboard panels) in thousands of cubic meters as of December 31, 2025.

Solid Wood

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Countries**<br>| **Mills** | **Sawn Timber** | **Kiln-dried** <br>**Lumber <sup>(\*)</sup>** | **Remanufactured <sup>(\*</sup>**) | **Laminated Beams** <br>**/ CLT <sup>(\*)(2)</sup>** | **Plywood** |
|  | Horcones I | 484 | 362 | 148 | - | - |
|  | Horcones II **(3)** | - | - | - | - | - |
|  | Valdivia | 464 | 336 | 96 | - | - |
|  | Nueva Aldea | 431 | 351 | - | - | - |
| Chile<br>| Nueva Aldea | - | - | - | - | 350 |
|  | Viñales | 377 | 358 | 110 | - | - |
|  | Cholguán | 317 | 273 | 126 | 21 | - |
|  | Arauco | - | - | - | - | 350 |
| **Sub-Total**<br>|  | 2073 | 1680 | 480 | 21 | 700 |
| Argentina<br>| Piray | 330 | 308 | 45 | - | - |
| **Sub-Total**<br>|  | 330 | 308 | 45 | -  | - |
| Spain <sup>(1)</sup><br>| Cuellar | 35 | - | - | - | - |
| **Sub-Total**<br>|  | 35 | - | - | -  | - |
| **Total**<br>|  | 2438 | 1988 | 525 | 21 | 700 |

---

(\*) Sub Processes from Sawn Timber.

(1) Considers 50% of our Joint Venture Sonae Arauco.

(2) Cross Laminated Timber.

(3) In July 2023, Horcones II Sawmill in Chile permanently shut down its operations and was closed at the end of 2023.

**Panels**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Countries**<br>| **Mills** | **Products** | **Panels** | **Melamine** <br>**Laminated <br>(\*)** | **Mouldings <br>(\*)** |
| Chile<br>| Trupán | MDF | 335 | 40 | 240 |
|  | Teno | PBO | 340 | 340 | - |
| **Sub-Total**<br>|  |  | 675 | 380 | 240 |
|  | Jaguariaiva | MDF | 780 | 780 | - |
| Brazil<br>| Ponta <br>Grossa<br>| MDF | 300 | 330 | - |
|  | Piên | MDF | 440 | - | 71 |
|  | Montenegro | PBO | 450 | - | - |
| **Sub-Total**<br>|  |  | 1970 | **1110**  | 71 |
|  | Grayling | PBO | 800 | 448 | - |
|  | Carolina | PBO | 580 | 280 | - |
| United <br>States<br>| Malvern | MDF | 310 | - | 98 |
|  | Moncure | MDF | 285 | 60 | 82 |
|  | Duraflake | PBO | 250 | 92 | - |
| **Sub-Total**<br>|  |  | 2225 | 880 | 180 |
| Argentina<br>| Piray | MDF | 300 | 168 | - |
|  | Zárate | PBO | 260 | 220 | - |
| **Sub-Total**<br>|  |  | 560 | 388 | - |
|  | Durango | MDF | 275 | 234 |  |
| Mexico<br>| Durango | PBO | 60 |  |  |
|  | Zitácuaro <br>(1)<br>| PBO | 160 | 107 | - |
| **Sub-Total**<br>|  |  | 495 | 341 | - |
| Canada<br>| Sault <br>Sainte <br>Marie<br>| MDF | 310 | 115 | - |
|  | St. <br>Stephen<br>| MDF | 110 | - | - |
| **Sub-Total**<br>|  |  | 420 | 115 | - |
|  | Nettgau | PBO | 325 | 124 |  |
|  | Nettgau | OSB | 230 |  |  |
| Germany <br>(2)<br>| Beeskow | PBO | 200 | 66 | - |
|  | Beeskow | MDF | 175 | - | - |
|  | Meppen | MDF | 155 |  |  |
| **Sub-Total**<br>|  |  | 1085 | 190 | - |
| Portugal <br>(2)<br>| Oliveira | PBO | 225 | 141 | - |
|  | Mangualde | MDF | 180 | - | - |
| **Sub-Total**<br>|  |  | 405 | 141 | - |
|  | White <br>River<br>| PBO | 150 | - | - |
| South <br>Africa <br>(2)<br>| Panbult <br>(3)<br>| PBO | 76 | - | - |
|  | White <br>River<br>| MDF | 35 | 120 | - |
| **Sub-Total**<br>|  |  | 261 | 120 | - |
| Spain <br>(2)<br>| Linares | PBO | 215 | 105 | - |
|  | Valladolid | MDF | 70 | 9 | - |
| **Sub-Total**<br>|  |  | 285 | **114**  | - |
| **Total** <br>|  |  | 8381 | 3778 | 491 |

---

(\*) Sub Processes from Panels

(1) New MDF line approved for construction in 2023. For more information, see "Item 4. Information on our Company—Description of Business— History."

(2) Considers 50% of our joint venture Sonae Arauco.

(3) Currently shut down.

**Sustainability** 

**Sustainability Strategy**

We are committed to integrating nature and development by creating shared value through responsible forest management and industrial innovation. Wood is our core raw material, and we develop sustainable products that offer competitive solutions across a wide range of industries and support the transition to renewable bioeconomies. We seek to maximize the value of our forestry assets through management practices that conserve integrated and resilient landscapes, ensure their long-term regeneration, and enable the production of pulp, wood, panels, and renewable energy—storing carbon and replacing fossil-based materials, thereby contributing to climate change mitigation. Through innovation, the adoption of international standards, and responsible management, we strengthen our competitiveness in global markets while generating positive social, economic, and environmental impacts in the communities where we operate, contributing to the well-being of both people and the planet.

**Persons of Excellence**

A key part of our sustainability strategy is having people of excellence, because they provide us with a distinctive organizational culture that enables us to embrace future challenges and achieve results sustainably. We focus on attracting, training and retaining a talented and inclusive team of persons who share our values to place the safety of people first, to respect and protect the environment and local communities we depend on, to value teamwork and the ability to reconcile different points of view to achieve a common objective, and to question the present and challenge the future and innovate.

We also prioritize initiatives designed to attract female talent and to recruit and develop individuals from the communities in which we operate. Women represent 15.4% of our total workforce, of whom 16.2% hold leadership roles—including director, management, and senior management positions. In particular, 8.9% of first-level management positions are held by women.

In 2025, we continued the Women's Mentoring Program—an initiative launched in 2024 to strengthen the professional development and visibility of female talent within Arauco. In its second year, the Program further consolidated cross-business learning and deepened the active engagement of senior executives as mentors, reinforcing our commitment to a more diverse, inclusive, and collaborative organizational culture. As part of the Program, the "Strategic Career Design" workshop equipped participants with practical tools to define their career paths, strengthen their leadership capabilities, and identify new growth opportunities within the Company.

**Diversity, Equality, and Inclusion**

We have highly qualified, diverse and motivated people who share our corporate values, culture and strategic objectives, and we do not unfairly discriminate based on gender, ethnicity, beliefs, appearances or any other reason.

We recognize people for their individuality and diversity. We believe that each person's contribution is unique, and teams are enriched by integrating different perspectives and abilities. We consider inclusion and diversity as fundamental aspects for achieving our present and future challenges.

We offer employment opportunities regardless of race, color, religion, country of origin, disability or genetic information, in compliance with applicable law. We are committed to complying with the respective disability laws of each country where we operate, and to taking all necessary actions to ensure equal employment opportunities for individuals with the required skills, regardless of disability.

Continuous efforts are made to improve the diversity of our work force through a diagnosis of the situation in the organization across different thematic axes, such as recruitment and selection; training and organizational development; compensation and remuneration; infrastructure; work-life balance, personal and family life, and harassment protocols.

In alignment with this approach, we have strengthened our Talent Attraction and People Selection policy. We have thoroughly reviewed each stage of the selection process to ensure it

incorporates a broader perspective and promotes the inclusion of persons with disabilities. As a result, we have implemented new practices, including requiring that final shortlists of candidates for open positions include women and establishing a data dashboard to monitor progress toward our diversity, equity, and inclusion goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Regarding community work, we continue to maintain and coordinate our efforts with various local universities and institutes with the goal of attracting talent and promoting diversity, equity, and inclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We developed strategic agreements with organizations specialized in inclusion, allowing us to have their expert technical support, enhance our recruitment, our employer brand, and develop mutual collaboration.

**Occupational Health and Safety**

Safety is Arauco's foremost value. We believe that our people represent the heart of our organization. Accordingly, the safety and health of our employees and collaborators are our highest priority. Our risk management model promotes a safety culture based on the value of people and teamwork and is designed to foster conditions for work that is both safe and productive. Our employees are actively encouraged to be part of safety teams and assume prominent roles not only in their own safety but also in the safety of others.

We strive to ensure sanitary and healthy workplace conditions for our workers to enhance their high performance at work and promote illness-free operations. Prevention of occupational diseases lies in the proper implementation of two key processes. The first is environmental surveillance, focused on identification, evaluation and control of risks that our workers might be exposed to. The second is medical surveillance, focused on prevention and early detection of illnesses in subclinical or pre-symptomatic phases, so we can adopt the necessary measures to mitigate or reverse the progress of any such illness.

Initiatives to enhance the health and safety of our personnel include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our corporate management model, called " Together for a Better Life, " is applied in all the countries where we operate and is based on three fundamental principles: Empowered Employees, Safe Teams, and Work Well-Done. To ensure that teams play an active role in their safety, we have established four commitments and 16 work areas that structure daily activities. To become a global benchmark in safety, we continuously work on strengthening this model, which has allowed us to improve our indicators compared to previous years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The "Together for a Better Life" approach promotes the implementation of practices that drive a cultural change within the organization. Our goal is to modify behaviors through the acquisition of new knowledge, highlighting the fundamental role of team leaders in this process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We continue working to strengthen the practices that have proven to be effective, such as the Safe Team program, the corporate ABC and 123 practices, the 5 Key Rules (Climb Safely, Position Yourself Safely, Enter Safely, Intervene Safely and Operate Safely), and the constant adherence to our internal standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The "ABC Practice" implemented in 2019 is designed to create the habit of identifying potentially unsafe behaviors or conditions that precede incidents. Workers are evaluated each day with an A, B, or C letter according to the actions they took to correct the behaviors or conditions detected during their shift or activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The "123 Practice" consists of three steps activated when a high-potential incident occurs. Step 1: investigation of the incident to determine root causes. Step 2: communicate the root causes and control measures to the peer areas of other plants or forest units. Step 3: communicate the learnings to workers at all levels through the "Learning Card."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Throughout 2025, we continued to prioritize the proper identification of risks and the implementation of effective controls to prevent accidents. Particular emphasis was placed on the management of high-potential incidents, ensuring that each such incident is subject to thorough investigation and that the lessons derived therefrom are systematically incorporated into our operations. In parallel, we continued to reinforce practices that have demonstrated their effectiveness, including the Safe Team program, the ABC and 123 corporate practices, the 5 Key Rules, and ongoing compliance with our internal standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Cultural Change Committees are responsible for addressing and managing issues related to local specificities. In this process, the influence of leaders in each area has been essential to effectively address the issues raised by work teams.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We train our workers to understand the risks they may be exposed to as well as measures available to mitigate the risk of occupational illness. Our workers potentially exposed to risk of occupational illness are required to have periodic medical examinations, and workers who work at heights, in confined spaces or operate mobile equipment are required to have periodic medical examinations to determine their fitness to perform such tasks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Promoting the health of our employees and preventing the occurrence of occupational diseases is a key task for us. With this goal, we implement two key stages in Occupational Health at all its facilities: environmental surveillance, which consists of identifying, evaluating, and controlling the risks to which workers may be exposed; and on the other hand, medical surveillance, to prevent or detect a disease in the subclinical or presymptomatic phase, in order to take appropriate measures to reverse its effects or delay its progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Thus, employees with a certain level of risk are medically evaluated to determine if their health is suitable to perform safely and then, are periodically monitored. To facilitate access to medical care, all our facilities have first aid rooms (FAR) or clinics. These are staffed by duly trained health personnel, such as nurses, nursing technicians, and doctors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have programs and elements to protect our workers from high levels of noise and to provide respiratory protection, as well as an ergonomics program and vaccination control.

**Community and Social Development**

We seek to be a virtuous actor in the communities we are a part of and an active agent in their economic and social development. We are committed to the United Nations' Sustainable Development Goals and believe that the development and wellbeing of our local communities is essential to the sustainability of our business. Through a model of dialogue and participation, we engage actively with local communities and implement a range of social and community programs that promote collaboration and common interests including, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For over thirty years our Educational Foundation (Fundación Educacional Arauco) in Chile has contributed to the widespread improvement of the quality of local education by strengthening the core competencies and teaching skills of school principals and teachers in hundreds of schools serving thousands of young students.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Water Supply Challenge (Desafío Agua) program in Chile promotes improved community hygiene and sanitation by providing equipment and infrastructure to rural communities and schools to improve their access to reliable sources of clean water for human consumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We promote access to affordable housing through our Housing Program (Programa Vivienda) in Chile by counseling our employees, suppliers and their families in applying for public housing subsidies and by assisting them in finding and evaluating adequate housing. Since its inception, this program has supported the construction of more than 1,750 new housing units to the program's beneficiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Open Forests initiative has provided local communities with access to part of our forest assets, enabling activities that promote the care and conservation of nature. In Chile, the program includes 50 open spaces dedicated to sports, recreational, educational, and cultural purposes—30 of which are primarily used for sports activities—and welcomed 72,918 visitors across Chile and Argentina in 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Program Green Club in Argentina promotes environmental care from an early age through activities carried out together with schools, municipalities and boys and girls in primary education. During 2025 we carried out workshops in 58 primary institutions with 2,339 boys and girls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Continuous Teacher Training Program is committed to improving the Basic Education Development Index (IDEB) in the grades of primary school in the main municipalities where Arauco operates in Brazil. During 2025, 280 teachers participated in our training programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Youth and Sustainability program in Argentina aims to encourage and promote teenage participation in environmental conservation and sustainable activities within high schools and employment offices. In 2025, the program was implemented in 25 high schools, engaging 1,425 young people.

**Responsible Management of our Forestry and Other Renewable Assets**

We base our business on the production and management of renewable forest resources and taking care of the environment and our natural resources is very important.

The planning of our forest cycle is complemental and consistent with our operational activities, selling wood products and supplying our industrial mills.

*Carbon Footprint*

In 2020, in accordance with our first certification, we believe we were the first forestry company to become carbon neutral regarding our carbon captures and footprint of 2018. This means that, at a global level, our carbon dioxide captures exceed our emissions. This achievement is sustained by two complementary paths: efficiencies at an operational level that allow us to reduce greenhouse gas emissions, and at the same time, an increase in CO2 captured by the native forest, forest plantations, and carbon stored in our pulp and wood products. This achievement builds on the path we set for ourselves almost three decades ago, when we elected to integrate clean and renewable energy from biomass into our production processes, thus contributing to the decarbonization of the Chile's energy grid.

To continue to move forward with greenhouse gas emission reductions, we will strive to produce more clean and renewable energy, replace fossil fuels that have a high carbon footprint; incentivize suppliers to reduce their own carbon footprint; and continue to increase the reuse of byproducts from industrial processes, among other initiatives.

In addition, we promote adaptation measures to strengthen the resilience of our operations, landscapes, and communities to the physical impacts of climate change. Such measures focus on enhanced water stewardship in critical basins, forest fire prevention and resilient land management, conservation and restoration of native forests as nature-based solutions, climate research and monitoring to anticipate ecosystem risks, and community-level initiatives supporting local resilience through water access, fire prevention, and environmental education.

*Preservation of Native Forests*

A part of our forestry assets consists of native forests, and we are committed to their preservation and restoration. We manage our native forests in accordance with scientific research and conservation strategies developed in close collaboration with governmental authorities, local communities and environmental organizations. We manage some of our native forests as parks open to the public and others as High Conservation Value Areas ("HCVA") or strictly protected areas.

Our native forest preservation and restoration program includes the restoration of 25,000 hectares of native forest in Chile by 2050 and expanding the protection of watercourses, where we have made advancements in more than 9,952 hectares since 2012 in Chile and 16,434 hectares in Latin America.

*Special Protected Areas*

In addition to native forests, our forestry assets also include approximately 120,061 hectares of sites of such special environmental, social and cultural significance that have been designated as HCVAs. We consult actively with local communities and specialists in order to identify HCVAs of particular social significance. Our designation allows these sites to be specifically identified, maintained and improved in a manner that enhances their biological, ecosystemic and cultural attributes.

*Monitoring Biodiversity and Protecting Ecosystems*

We believe that forests are more than wood and fiber. They are a critical part of a larger ecosystem which we try to protect, maintain and enhance. One of the main challenges of our business is to maintain and enhance biodiversity in our forests. To do so, we apply a Biodiversity and Ecosystem Services Policy (which was updated during 2023) that emphasizes constant assessment and management of the effects of our operations on biodiversity and other ecosystems. We make a constant effort to conduct research programs to identify biodiversity elements (species, ecosystems, wetlands, etc.) and to prepare management protocols and monitoring plans emphasizing threat control. Many of the most significant areas in terms of biodiversity are designated as HCVAs.

In 2025, we became the first forestry company in Chile and the second in Latin America to be recognized as a TNFD Adopter, reinforcing our commitment to nature-centered strategic decision-making. By aligning with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), we formally committed to reporting transparently on the nature-related risks and opportunities facing our business. This milestone reflects the integration of nature considerations into our business model and long-term strategy, recognizing nature not merely as a resource, but as the foundation of our future development

Building on this commitment, we joined an international pilot led by the International Sustainable Forestry Coalition (ISFC) to advance the application of Natural Capital Accounting in the forestry sector. Supported by the Capitals Coalition and TNFD, the initiative aims to develop a framework for measuring and reporting the value of forest natural assets—including carbon sequestration, biodiversity, and water regulation—alongside wood production, thereby reinforcing nature as a strategic asset for long-term value creation.

*Management of Water Resources*

Water is an essential element for the life of plants, animals and humans. That is why the increase in consumption in a context of climate change has generated growing awareness of the importance of managing water in a sustainable manner. Its variable availability has imposed on us the challenge to improve water management, infrastructure and uses, aiming to guarantee its availability in enough quality and quantity.

Since 2008, we have maintained a commitment to hydrological monitoring, focusing on the development of knowledge for the sustainable management of water resources.

Regarding water scarcity, Chile experienced droughts during recent years and, as a consequence, the Licancel mill had to cease its activities for approximately three months in the end of the 2019. Rainfalls in the region slightly increased during the 2020 and 2021 summer seasons compared to 2019. Thus, we were able to ensure the continuity of our operations, except in February 2022 and February 2023, when the Valdivia mill had to cease its activities for three days and one day, respectively, due to the low flow of the Cruces River. We evaluated and implemented several initiatives to mitigate the effect of drought. Those operational measures have helped us to decrease the exposure of our operation in the face of water shortage and allow mills to operate normally.

From an industrial point of view, continuous improvement and efficient use of water is an important goal for us. In this regard, among others, we monitor water availability in the facilities where we draw water from; and we look to implement diverse initiatives aimed at optimizing water usage.

In addition, the execution of maintenance plans for critical equipment and systems such as effluent treatment plants and appropriate instrumentation ensures efficient management of liquid waste and overall water performance.

Pulp production accounts for approximately 97% of the Company's total water withdrawals. Building on years of systematic efforts in water management, monitoring, and efficiency improvements, the Company has attained a level of operational maturity that supports the establishment of a measurable reduction target. Accordingly, the Company has set a goal to reduce water withdrawals per ton of pulp produced by 30%, with specific focus on this business segment as the primary driver of the Company's overall water performance. By concentrating on the principal use of water, this objective is designed to enhance operational efficiency, reduce pressure on water sources, and strengthen the resilience of the Company's operations under conditions of increasing water stress, consistent with a responsible and long-term approach to water resource management.

For more information regarding certain risks relating to water scarcity, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company— Climate change could negatively affect our business, financial condition, results of operations and cash flows."

*Forest Fire Prevention*

We strive to sustain the integrity of our forestland, protecting forest plantations, neighboring communities and conservation areas. We seek to decrease the occurrence of forest fires and to manage combustible material to lessen the potential propagation of fires when they occur. Due to Chile's climatic conditions, our plantations in Chile have historically been at greater risk of forest fire than our plantations in other countries. The fires of recent seasons in Chile have allowed us to develop enhanced measures to address fire prevention, detection and control.

We work with neighboring communities through joint fire prevention initiatives including local fire prevention committees in which neighbors, governmental authorities and private businesses collaborate. We have strengthened our fire detection capabilities by creating a new, unified central command post in Chile that collects all information on detection and resource deployment and by deploying new monitoring and early detection tools such as fixed and robot cameras, and by developing patrol routes for fire detection during high-risk periods.

In Chile, we are actively engaged in the Community Prevention Network, an organization that coordinates preventive efforts through local committees. These committees unite neighbors, authorities, the Corporación Nacional Forestal (National Forest Service) generally known as CONAF, firefighters, police officers, companies, and other stakeholders to collaborate with communities. The network encompasses more than 500 committees across over 80 municipalities, spanning from the O'Higgins to the Los Lagos regions. This collective effort enhances education and local actions aimed at reducing risks.

We continuously seek to improve measures to reduce the intensity and speed of fires once there is an outbreak. We maintain hundreds of kilometers of fire protection belts, consisting of firebreaks (gaps in combustible vegetation) and fire buffer zones (areas of reduced vegetation), to protect residential areas near our forest plantations. We deploy air and ground resources, including night firefighting crews, to respond quickly in the initial phase of outbreaks and continue to enhance our resources available for firefighting.

**Environmental Management of our Industrial Operations**

Environmental management in our industrial processes is key for us. We center our activities around tracing and monitoring management and continuous improvement and compliance with environmental regulations, especially in terms of odors, effluents, atmospheric emissions and solid residues.

Our industrial mills and forestry assets are certified under national and international standards related to corporate governance, environment, quality, health and safety and responsible forest management. Our plants and mills have environmental metrics associated to raw material consumption, effluents, solid waste, water consumption, energy consumption, among others. At the same time, we continuously monitor our effluents and emissions, as means of guaranteeing compliance with our environmental commitments and adequate environmental surveillance.

*Solid Waste Disposal*

Solid waste that comes from the manufacturing of our products is treated in accordance with the environmental applicable regulatory framework and our management policies.

In the case of our pulp business, solid residues mostly come from the caustification process; in the case of our lime kilns, from our effluent treatment plants in the form of sludge, among other sources. Most of these residues are sent to our own deposits of industrial residues. Nevertheless, as part of our strategy and environmental objectives, we have studied to add value to these residues by selling them to companies with whom we have arrangements so that they can use these residues as raw materials. The main uses are manufacturing of concrete, as soil improver both in agriculture and in forestry, and also manufacturing of fertilizers.

In the case of our wood products business, we have a strategy that seeks to increase the percentage of residues recycled and to diminish the volume of those that go to final disposal.

During 2025, our pulp business recovered and recycled approximately 79% of its non-hazardous waste, and our wood products business recovered and recycled approximately reached 92% of such waste.

Our global goal is to achieve zero hazardous solid waste by 2030, maximizing the use of resources and inputs and creating added value through smart solutions. To achieve this, we have been building collaborative partnerships with startups, local universities, and other think tanks. The goal is to develop new circular solutions and business models that could replace non-renewable raw materials and reduce waste throughout our value chain.

*Liquid Effluents*

Most of our industrial operations generate liquid effluents. These are continuously monitored to ensure that the emission levels stay between the parameters defined by the relevant authorities and/or applicable regulatory framework. All of our pulp mills have effluent treatment systems that we believe allow us to remain in compliance with the aforementioned parameters. Additionally, we are working on the development and review of alternatives for effluent recirculation. The pilot project for effluent treatment and recirculation is currently in the research stage at the industrial facilities in the pulp and energy business.

In our wood products business, our mills also treat their liquid effluents. This is done either in the pulp mills adjacent to them if applicable or, when there is no neighbouring pulp mill, in independent systems.

*Energy Management*

In a context in which the clean energy supply is limited, renewable energy generation and its efficient use are a challenge for us. By using biomass in our boilers, we are self-sufficient in energy consumption in Chile, Argentina and Uruguay, contributing energy surplus to each country's power grid. In addition to energy generation, our recovery boilers recover inorganic compounds that are part of the process. We also promote greater efficiency in its processes to reduce energy consumption and improve environmental performance.

*Air Emissions*

Air emissions are permanently monitored. In the case of our pulp mills, Total Reduced Sulphur ("TRS") is continuously controlled in order to minimize odor-related events associated to TRS gas venting. Particle air emissions are controlled through mitigation equipment, such as electrostatic precipitators and gas washers.

In the case of our wood products mills, emissions of particulates are controlled through mitigation equipment such as gas scrubbers and electrostatic precipitators. Fine wood dust emissions from remanufacturing and sawing processes are reduced by using bag filters that collect the sawdust, which we then use as biomass fuel.

**Competitors** 

We face substantial worldwide competition in each of our geographical markets and in each of our product lines.

**Pulp**

Based on information published by Hawkins Wright Ltd., we believe that our main competitors are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Hardwood pulp market</u>: Asia Pacific Resources International Holdings Limited (APRIL), Asia Pulp and Paper (APP), CMPC Celulosa S.A. (CMPC), Eldorado Brasil Celulose S.A., Klabin S.A., Stora Enso, Suzano Papel e Cellulose S.A. (Suzano), and UPM-Kymmene Oyj (UPM), among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Softwood pulp market</u>: Domtar Corporation, Georgia Pacific, Ilim Pulp Enterprise Ltd., International Paper Company (IP), Mercer International INC., Metsö Fibre, Södra, and UPM-Kymmene Oyj (UPM), among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Dissolvin</u> <u>g pulp market</u>: Caima Industria de Celulose S.A., Sappi Limited, LD Celulosa S.A., Hunan Juntai New Material Technology Co., Ltd. and Shandong Sun Paper Industry Joint Stock Co., Ltd, among others.

**Wood Products**

We believe that our main competitors are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>MDF market</u>: Berneck, Duraplay, Duratex S.A., Egger, Guararapes, Kronospan, Masisa, Proteak, Roseburg Forest Products Co., West Fraser, Cotopaxi and Weyerhaeuser, among others (mainly Asia).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>PBO market</u>: Berneck S.A., Duratex S.A., Egger, Kronospan, Masisa, Novopan, Fibraplac S.A, Sonae Indústria, Uniboard, Tableros Hispanos, PG Bison, among others (mainly Asia).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Plywood market</u>: CMPC, Eagon, Georgia-Pacific, Guararapes, Leonera Forestal, Lumin, Metsa, Roseburg, Sudati and UPM, among others (mainly Asia).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Remanufactured wood products market</u>: multiple competitors mainly located in Chile, Brazil, Mexico, the United States and Asia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Sawn timber market</u>: multiple competitors mainly located in Chile, Argentina, Brazil, Uruguay, the United States, Canada, Europe and New Zealand.

We believe that our operating efficiencies, competitive logistics costs, ability to serve customers with multiple specifications, geographical presence in 50 countries and the versatility of our radiata and taeda pine allow us to compete effectively in the world market for wood products.

**Transportation, Storage and Distribution**

We manage and develop our facilities, transportation, storage and product distribution network seeking to consolidate and expand our presence worldwide, offering competitive advantages that allow us to reach over 4,800 customers around the world.

**Pulp** 

We believe that our shipping costs are competitive with those of our main international competitors due in part to the large volumes we export. In addition, we believe that the proximity of our plantations to our mills and from our mills to the ports give us a competitive advantage notwithstanding some of our distance from certain of our main markets.

*Chile*

The distribution (in tonnes) of our exports by port of origin is the following: Lirquén 59%, San Vicente 28%, San Antonio 6%, Coronel 4% and in Valparaíso 3%.

*Uruguay*

We ship our finished product through the port managed by our joint operation Montes del Plata located next to the pulp mill in Punta Pereira, Colonia, Uruguay.

*Argentina*

The distribution (in tonnes) of our exports are the following: Dock Sud 43%, Buenos Aires 23% and Zárate 34%.

We ship pulp to various ports in Asia, Middle East, Europe, North and South America and, as is customary in the pulp industry, we store some stock in those ports. We use 20 foreign ports that have warehouse facilities available, and standard storage terms provide that we are entitled to a certain period of storage free of charge. We seek to ensure that we do not exceed the free storage period for each shipment. As of December 31, 2025, we had approximately 130,549 tonnes of pulp in storage in warehouses at foreign ports.

**Wood Products**

Globally, we strive to service our customers with excellence, seeking service differentiation to remain competitive in the industry.

*United States and Canada*

We distribute our products to over 526 customers through trucks and trains. Products imported from our South American operations are shipped into 21 major ports of entry and stored in 15 warehouses. Our products are dispatched to 3,753 locations in the United States and Canada.

*Brazil*

In our local distribution operation, we deliver finished products to 779 customers in over 327 cities, many of which are separated by long distances.

Additionally, we export our products to 16 countries through 39 ports of destination.

*Chile*

The distribution (in cubic meters) of our exports by port of origin is the following: Lirquén 44%, Coronel 24%, San Vicente 23%, San Antonio 7%, in Valparaíso 2% and in Talcahuano 1%.

*Mexico*

Products from our operations are shipped into 8 ports of entry (Manzanillo 61%, Veracruz 22%, Altamira 9%, Others 8%) and stored in 4 warehouses. Our mills in Durango and Zitácuaro service over 173 customers throughout Mexico.

*Argentina*

The distribution of our exports (in cubic meters) by port of origin is the following: Dock Sud 56%, Buenos Aires 41% and Zárate 3%, reaching 37 ports around the world and a total of 87 customers.

We ship wood products to various ports in Asia, North and Latin America, Middle East, Europe, Oceania and Africa. We distribute our products worldwide to over 130 ports of destination both directly to our customers or through a domestic distribution network in 3 countries consisting of warehousing and truck/train transportation to final destinations. As of December 31, 2025, we had approximately 1.1 million cubic meters of wood products in storage in warehouses and distribution centers.

**PROPERTY, PLANTS AND EQUIPMENT**

The following table presents our principal properties as of December 31, 2025.

---

| | | |
|:---|:---|:---|
| **Country**<br>| **Forestry** | **Plants and Facilities** |
| Chile<br>| 1,026,528 <br>total hectares <br>606,647 <br>hectares <br>of <br>plantations | 4 Pulp mills (1)<br>1 PBO mill <br>1 MDF mill <br>2 Plywood mills <br>5 Sawmills <br>4 Remanufacturing Facilities<br>|
| Argentina<br>| 264,129 <br>total <br>hectares<br>129,247 <br>hectares <br>of <br>plantations<br>| 1 Pulp mill <br>1 MDF mill <br>1 PBO mill <br>1 Sawmill <br>1 Remanufacturing Facility <br>1 Resin mill |
| Brazil<br>| 434,218 <br>total hectares<br>240,579<br>hectares <br>of <br>plantations<br>| 3 MDF mills <br>1 PBO mill <br>1 Resin mill |
| Uruguay <sup>(2)</sup><br>| 153,245 total hectares <br>94,872 <br>hectares <br>of <br>plantations<br>| 1 Pulp mill |
| United States<br>|  | 3 PBO mills <br>2 MDF mills <br>1 Impregnation of melamine paper mill |
| Canada<br>|  | 2 MDF mill <br>1 Resin mill |
| Mexico<br>|  | 1 PBO mill <br>1 MDF-PBO mill <br>1 Resin mill |
| Portugal <sup>(3)</sup><br>|  | 1 MDF mill <br>1 PBO mill <br>1 Resin mill |
| Spain <sup>(3)</sup><br>|  | 1 MDF mill <br>1 PBO mill <br>1 Sawmill |
| Germany <sup>(3)</sup><br>|  | 1 MDF mill <br>1 MDF-PBO mill <br>1 PBO-OSB mill <br>1 Impregnation of melamine paper mill |
| South Africa <sup>(2)</sup><br>|  | 1 PBO Mill <sup>(4)</sup><br>1 MDF-PBO Mill |

---

(1) Not including the Licancel mill, which indefinitely suspended operations in August 2023.

(2) Arauco owns 50% of Montes del Plata joint operation.

(3) Arauco owns 50% of joint venture Sonae Arauco.

(4) This mill is currently shut down.

Future expansion plans will depend on global market conditions. For information regarding environmental risks associated with our use of our properties, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company."

**Insurance**

Our global insurance program includes our production plants, facilities and equipment. This insurance program provides coverage, in the event of fire, explosion, machinery breakdowns or natural disasters, including earthquakes and tsunamis. Subject to exclusions and deductibles, our insurance covers up to U.S.$900 million per loss in Chile, U.S.$300 million per loss in Argentina, United States and Canada, U.S.$145 million per loss in Mexico and R$1,000 million (equivalent to approximately U.S.$

181.8 million using the exchange rate of December 31, 2025, as published by the Central Bank of Brazil) per loss in Brazil, including physical damage and business interruption for up to 18 months for Chile, Argentina and Brazil, and up to 12 months for United States, Canada and Mexico. This program has a SIR (Self Insured Retention) of the first U.S.$100 million on each and every loss on top of deductibles for our pulp business segment and U.S.$25 million for our wood business segment.

The deductibles for Chile and Argentina for physical damage are U.S.$3 million per occurrence for damages caused. In case of damages caused by earthquakes and tsunamis in Chile, the deductible is 2% of the total insured amount for each location, subject to a cap of U.S.$25 million. Deductibles for Chile and Argentina for business interruption are 30 days for all losses, 45 days for machinery breakdowns and 45 days for machinery breakdowns of turbines. The deductible for Mexico and Brazil for business interruption is 30 days. The deductible for Arauco North America, including physical damage and business interruption is U.S.$2.5 million. The deductible for Mexico, including physical damage and business interruption is U.S.$1 million. The deductible for Brazil, including physical damage and business interruption is 20% of indemnifiable losses, with a minimum of R$10 million. Our insurance policies covering our production plants, facilities and equipment in Chile are carried by Seguros Generales Suramericana S.A. (52%), Southbridge Compañía de Seguros Generales S.A (28%) and Mapfre S.A. (20.0%).

In Brazil, by Mitsui Sumimoto Seguros S.A (6.5%), Fator Seguradora S.A (33.0%), AIG Seguros Brasil S.A (10.0%), Sompo Seguros S.A (17.5%) and Tokio Marine Seguradora S.A (33.0%).

In Argentina, by Sudamericana Seguros Galicia S.A (100%); in Mexico, by Seguros Generales Suramericana S.A. (100%), and in the United States, and Canada by Great Lakes (100%).

In Chile, we have contracted fire insurance coverage for all of our Chilean forest holdings but do not insure against pests or disease.

In January and February 2017, wildfires, exacerbated by high temperatures, the action of the winds, low atmospheric humidity and the complexity of combatting multiple focal points that appeared simultaneously in different places, broke out in the central and southern regions of Chile, and with respect to us, in the Maule, Ñuble and Biobío regions. As a consequence of such fires, we suffered the burning of approximately 72,500 hectares of forest plantations, which had a fair value of U.S.$210 million, according to IFRS Accounting Standards. The forest plantations adversely affected by the fires had insurance coverage, with their corresponding deductibles and limits. In accordance with the final report of the insurance adjusters, in October 2017 our subsidiary Forestal Arauco recovered U.S.$35 million, after applying a U.S.$15 million deductible.

After the 2017 wildfires in Chile, we increased the limits of our forestry insurance coverage in Chile to U.S.$85 million with a deductible of U.S.$25 million for the whole season (regardless of the number of the events). This policy was contracted with Orion Seguros Generales (100%), for the period between October 14, 2022 and October 14, 2023. A claim settlement was established through the evaluation of satellite images of the burned areas, which allowed us to have more accurate and faster information about the claims.

During 2023, given the world catastrophes and the high loss ratio carried over from the previous summer season, we had to be innovative and disruptive by changing the way of ensuring the forest assets, for which we created a structured insurance through Orion General Insurance Company, with a parametric and structured system.

The structured system is a model in which we contract insurance for 3 years (from October 2025 to October 2028) with immobilized price and capacity, regardless of the number of fires we suffer during the three-year period. This program had deductibles of U.S.$25 million and limits of U.S.$75 million per year after applying a deductible.

The settlement of claims is made with satellite information, as is the case with parametric insurance.

During the 2023-2024 forest fire season, approximately 815 hectares of our productive forest plantations in Chile were adversely affected by fires that occurred in early 2024 in the regions of Maule, Ñuble, Araucanía, Biobío and Los Ríos due to a combination of multiple irresponsible and/or intentional actions by third parties and extreme unfavorable weather conditions such as high temperatures, low humidity and high winds.

As of December 31, 2025, we recognized a forest fire loss of U.S.$

9.8 million, net of insurance compensation, for the fires in Chile.

As of the date of this annual report, during the 2025-2026 forest fire season, approximately 6,200 hectares of our forest plantations had been materially and adversely affected by fires.

In Argentina, we maintain fire insurance for 17,075 hectares for a total amount of U.S.$34.3 million of timber assets located in the Delta of the Paraná river, close to Buenos Aires and Entre Ríos. The insurance policies for plantations located in the Delta of the Paraná river, are carried by Federación Patronal and are capped at U.S.$4 million with a deductible of U.S.$300,000. For the rest of our forests in Argentina, we do not maintain fire insurance since historically Argentina receives significant amount of rainfalls, especially during the summer months and we believe that the risk of damage from fire does not justify the costs of carrying insurance.

In September 2020, wildfires in Brazil affected approximately 4,137 hectares of forest plantations, which had a fair value of U.S.$9.1 million, under IFRS Accounting Standards. The forest plantations affected by the wildfires had insurance coverage, with their corresponding deductibles and limits. In accordance with the final report of the insurance adjusters, in January 2021 we recovered U.S.$5.3 million, after applying a U.S.$0.6 million deductible. As a consequence of the September 2020 wildfires, the Swiss Re Insurance Company terminated the insurance policy because the claim was indemnified at the maximum contract value. We have decided not to maintain fire insurance for our forest in Brazil since we believe that the risk of damage from fire does not justify the costs of carrying insurance.

We believe that the terms, deductibles and limits of our insurance policies in all the countries where we operate are generally consistent with industry practice, and that such insurance in conjunction with our own resources, allow us to manage these risks responsibly. Nevertheless, our insurance coverage could prove to be insufficient to cover losses to our production plants, facilities, forests and equipment caused by fires or otherwise. The incurrence of losses or other liabilities that are not covered by insurance could result in significant and unexpected additional costs. Moreover, the terms and conditions for the renewal of our insurance policies may change in the future depending upon market circumstances and the type and amount of risks insured. For more information regarding the risks for which we insure our property, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Disease or fires could affect our forests and manufacturing processes and, in turn, adversely affect our business, financial condition, results of operations and cash flows."

**Cybersecurity**

We have developed a cybersecurity policy and regulatory framework based on the guidelines and criteria contemplated by the international standards ISO 27001, ISO 27002, ISO 27032 / NIST, and ISA 62443, for administrative and industrial environments, as appropriate. We have also implemented control mechanisms, technologies, processes and procedures developed on the basis of guidelines and criteria addressed by such international standards, with attention not only to identification and protection, but also to strengthening and improving recovery mechanisms.

Additionally, we have security solutions and technology partners that assist us in identifying, protecting, and detecting threats to our information assets, as well as in recovering our infrastructure. We conduct periodic security assessments, which help us enhance our ongoing initiatives and refine our cybersecurity strategy. These assessments also enable us to implement best practices in both administrative and industrial network environments. Our dedicated cybersecurity team is responsible for managing these functions.

We expanded our training program to users, through specialized e-learning platform, which supports users in identifying cybersecurity risks and allows the Company to prevent them. We also continue to adopt more simulation exercises and Human Resources policies to improve our employee's compliance with our cybersecurity policies.

Additionally, we continued to strengthen our regulatory compliance framework, with a particular focus on NERC-CIP (Critical Infrastructure Protection), a mandatory set of cybersecurity standards developed by the North American Electric Reliability Corporation to protect critical energy infrastructure, which we apply as a good practice framework for strengthening controls in our industrial environments.

This effort also includes alignment with the Chilean Cybersecurity Framework Law, and encompasses activities such as the assessment of existing controls, identification of compliance gaps, and the definition of governance and control mechanisms consistent with international best practices. In addition, we have developed our compliance model, using the NIS2 Directive as a reference standard, a European cybersecurity regulatory framework that establishes enhanced requirements for risk management, governance, incident reporting, and operational resilience for essential and important entities. We apply NIS2 as an international good practice benchmark, ensuring a risk-based, proportional and resilience-oriented approach that supports regulatory readiness and continuous compliance improvement.

During 2025, we did not face any material losses due to cybersecurity breaches. However, even though we have thorough cybersecurity practices and governance in place, we cannot assure that in the future we will not be subject to any material cybersecurity incidents.

For more information regarding cybersecurity risk, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Cybersecurity events, such as a cyber-attack could adversely affect our business, financial condition and results of operations." and for more information regarding how we manage these risks, see "Item 16K— Cybersecurity".

**Capital Expenditures**

To utilize our increasing volume of production, we have added to, expanded and modernized our processing facilities.

For the year ending December 31, 2021, our aggregate capital expenditures were U.S.$1,542.7 million, consisting primarily of U.S.$1,323.8 million for the addition of property, plant and equipment, and U.S.$218.9 million for maintenance and acquisition of biological assets.

For the year ending December 31, 2022, our aggregate capital expenditures were U.S.$1,578.2 million, consisting primarily of U.S.$1,278.0 million for the addition of property, plant and equipment, and U.S.$300.2 million for maintenance and acquisition of biological assets.

For the year ending December 31, 2023, our aggregate capital expenditures were U.S.$1,263.0 million, consisting primarily of U.S.$851.2 million for the addition of property, plant and equipment, and U.S.$411.9 million for maintenance and acquisition of biological assets.

For the year ending December 31, 2024, our aggregate capital expenditures were U.S.$1,228.9 million, consisting primarily of U.S.$845.0 million for the addition of property, plant and equipment, and U.S.$383.9 million for maintenance and acquisition of biological assets.

For the year ending December 31, 2025, our aggregate capital expenditures were U.S.$

2,444.7

million, consisting primarily of U.S.$

1,655.8

million for the addition of property, plant and equipment, and U.S.$

788.9 million for maintenance and acquisition of biological assets.

**Government Regulation**

**Environmental Regulation**

In each country where we have operations, we are subject to numerous national and local environmental laws, regulations, decrees and municipal ordinances concerning, among other things, health, the handling and disposal of solid and hazardous waste, discharges into the air, soil and water and other environmental impacts. Some of these laws require us to conduct environmental impact studies of future projects or activities (or major modifications thereto). Under these laws, our operations may be subject to specific approvals, consents and regulatory requirements, and emissions and discharges may be required to meet specific standards and limitations. We have made and will continue to make substantial expenditures to comply with such environmental laws, regulations, decrees and ordinances.

*Chile*

The Chilean legislation to which we are subject includes the *Ley Sobre Bases Generales del Medio Ambiente* ("Chilean Environmental Law") and related regulations. Current environmental institutions include the following public entities: the Ministry of the Environment (aimed at developing national environmental policy), the Service of Environmental Evaluation (in charge of administering the environmental assessment system), the Evaluation Commissions (in charge of evaluating projects and activities within the Environmental Impact Evaluation System), and the Superintendence of Environment (in charge of supervising and auditing environmental compliance). More recently on September 6, 2023, Law No. 21.600 created the Biodiversity and Protected Areas Service and the National System of Protected Areas (whose main focus is the conservation of national biodiversity).

Under the Chilean Environmental Law, we are required to conduct environmental impact studies or declarations on the environmental impact of any future projects or activities (or their significant modifications) that may affect the environment. These and other regulations also establish procedures for private citizens to object to the plans or studies submitted by project owners.

Governmental agencies may participate in the oversight of the implementation of projects in accordance with their environmental impact studies or declarations of environmental impact. Under the Chilean Environmental Law and other regulations, affected private citizens, public agencies and local authorities can sue to enforce compliance with environmental regulations. Enforcement remedies include temporary or permanent closure of facilities and fines. The Superintendence of Environment has issued numerous resolutions, instructions and requirements to various companies, officials and supervised parties, including our Company.

In respect of such regulations, in January 2025, the Cruces river, where the Valdivia mill disposes its effluents became subject to the Norm. The Valdivia mill discharges its treated effluents into the Cruces River, which is part of the Valdivia River Basin.

The Norm sets specific thresholds for various pollutants, prioritizing pollution prevention and promoting sustainable water management practices. Once the regulation comes into effect, there is a possibility that the authorities may declare the Valdivia River Basin contaminated, which could trigger an administrative process to implement a decontamination plan. This plan may include new wastewater discharge limits for the Valdivia mill. However, in March 2025, five trade organizations (*asociaciones gremiales*) challenged the validity of the Norm before the Third Environmental Court. Among other concerns, they raised issues regarding *(i)* various aspects of the Norm's AGIES, *(ii)* lack of a public consultation process and *(iii)* uncertainty about the background information considered in the rulemaking process. These objections included the failure to adequately identify and account for the economic and social costs associated with implementing the Norm. Other criticism pointed out that many of the parameters and limits are not technically or environmentally justified. The lawsuit remains under review by the court as of the date of this annual report. A ruling is expected later in 2026, with the possibility of further appeals to the Supreme Court.

We believe that we are currently in material compliance with local and national environmental regulations and orders applicable to our operations in Chile.

The application of these environmental laws and remedies may adversely affect the manner in which we seek to implement our business strategy and our ability to realize our strategy. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Compliance with environmental laws and other regulations, and liabilities arising thereunder, have in the past resulted in, and may in the future result in, costs that could adversely affect our business, financial condition, results of operations and cash flows."

We have faced, and continue to face, certain environmental proceedings in connection with some of our mills. For a description of these proceedings, see "Item 8. Financial Information—Legal Proceedings." and Note 18 of our audited consolidated financial statements.

*United States and Canada*

Our North American operations are subject to U.S. and Canadian environmental legislations, including federal, provincial, state and local laws and regulations. Such laws and regulations govern the use, storage, handling, generation, treatment, emission, release, discharge and disposal of certain hazardous materials and wastes, the remediation of contaminated soil and groundwater, plant and wildlife protection, landfill sites and the health and safety of employees. For example, under the Clean Air Act, the United States Environmental Protection Agency (EPA), has established Maximum Achievable Control Technology (MACT), environmental regulations that establish emission standards for point sources of pollution, such as press and dryer exhausts, process vents and equipment leaks. In addition, some of our operations require environmental permits and controls to prevent and reduce air and water pollution. Our failure to comply with applicable environmental, health and safety requirements, including permits related thereto, may result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· civil penalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· supplemental environmental projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· enforcement actions or other sanctions, such as judicial orders enjoining or curtailing operations or requiring corrective measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· loss of operating permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· required installation of pollution control equipment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· remedial actions.

In addition, we may become liable for third-party claims for personal injury and property damage due to contamination at our mills, even where the activity that caused such contamination occurred before we owned the mills.

We believe that we are currently in material compliance with local and national environmental regulations and orders applicable to our operations in the United States and Canada

.

*Brazil*

Our Brazilian operations are subject to environmental legislation, including municipal, regional and federal governmental laws, regulations and licensing requirements. Law No. 6,938 establishes strict liability for environmental damage, mechanisms for the enforcement of environmental standards and licensing requirements for activities that are damaging or potentially damaging to the environment. A violation of environmental laws and regulations may result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· fines,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· partial or total suspension of activities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· forfeiture or restriction of tax incentives or benefits, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· forfeiture or suspension of participation in credit lines with official credit establishments.

As a result, we may become liable for environmental damages caused by the management of our materials, including damages caused during the transportation, treatment and disposal of our industrial waste, even where third parties manage such activities on our behalf.

Law No. 9,605 provides that individuals or entities whose conduct or activities cause harm to the environment are subject to criminal and administrative sanctions and are liable for any costs to repair the damages resulting from such harm. For individuals who commit environmental crimes, criminal sanctions range from fines to imprisonment; for legal entities, criminal sanctions may include fines, partial or total suspension of activities, restrictions on participation in government contracts and, in cases of bad faith, dissolution. In addition, Law No. 9,605 establishes that the corporate structure of a company may be disregarded if the structure impedes the recovery for harm caused to the environment. We are not aware of any successful assertion of claims against shareholders under this provision of Law No. 9,605.

We believe that we are currently in material compliance with local and national environmental regulations applicable to our operations in Brazil.

*Argentina*

Our operations in Argentina are subject to Argentine environmental legislation, including regulation by municipal, provincial and federal governmental authorities.

Argentine environmental legislation includes the requirement that water used or recovered in the production process must be chemically, biologically and thermally treated before being returned to public waters, such as the Paraná River. In addition, all gaseous emissions must be scrubbed to ensure satisfactory levels of waste particle recovery. Regular testing of river water, soil and air quality is used to monitor the ultimate impact of the mill on the environment.

We believe that we are currently in material compliance with local and national environmental regulations applicable to our operations in Argentina.

*Mexico*

Our Mexican operations are subject to environmental legislation, including federal, state and local laws and regulations. Such laws and regulations govern the use, storage, handling, generation, treatment, emission, release, discharge and disposal of certain hazardous materials and wastes, the remediation of contaminated soil and groundwater, plant and wildlife protection, landfill sites and the health and safety of employees. For example, under the Mexican Environmental Law, the Ministry of Environmental and Natural Resources has established environmental regulations including emission standards for point sources of pollution, such as press and dryer exhausts, process vents and equipment leaks. In addition, some of our operations require environmental permits and controls to prevent and reduce air and water pollution. Our failure to comply with applicable environmental, health and safety requirements, including permits related thereto, may result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· civil penalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· supplemental environmental projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· enforcement actions or other sanctions, such as judicial orders enjoining or curtailing operations or requiring corrective measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· loss of operating permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· required installation of pollution control equipment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· remedial actions.

In addition, we may become liable for third-party claims for personal injury and property damage due to contamination at our mills, even where the activity that caused such contamination occurred before we owned the mills.

We believe that we are currently in material compliance with all local and national environmental regulations applicable to our operations in Mexico.

*Uruguay*

The activities of the Montes del Plata joint operation are subject to Uruguayan national and municipal environmental regulations. The principal environmental authorization required to carry out such project's construction activities was the environmental authorization ("AAP"), regulated by the Environmental Impact Assessment Act, Law No. 16,466, and its regulatory Decree No. 349/005. AAPs are granted by the National Environmental Bureau ("DINACEA") (former DINAMA), which pertains to the Ministry of Environment (former Housing, Land Use Management and Environment).

On July 14, 2020, Law No. 19,889 was published on the Uruguayan Official Gazette, creating the Ministry of Environment, empowered with exclusive competence on environmental matters. Law No. 19,889 also provided for the transfer of all environmental related powers of the Ministry of Housing, Land Management and Environment to the new Ministry of Environment.

In order to obtain this authorization, an applicant must submit a complete report regarding all aspects of any proposed works including a classification of the same by a competent professional in one of the three categories, A, B or C. If the proposed project is classified by DINACEA as A, then no other step to obtain the authorization would be required. However, if the proposed project is classified by DINACEA as B or C, a comprehensive environmental impact assessment (which includes all aspects of the project) is required and in some cases a public hearing may be required (such as when the project is classified as C). Once the AAP is granted, the interested party is required to perform the project in accordance with the terms and conditions of such authorization.

For certain activities (including, construction of an industrial plant), a Viability Location Report ("VAL") is required. This report should be submitted before the National Environmental Bureau and must include a notification to the municipal government where the project is to be located (*Intendencia*) and the delivery of information similar to that required for the AAP. This process contemplates a period for public comment on summary information that is available. The Intendencia involved in any such project may submit its findings to the DINACEA for consideration. The relevant companies that comprise Montes del Plata have already obtained the AAP and the VAL.

Once construction is completed according to the approved project and the AAP conditions, and prior to starting operations, a company needs to obtain the environmental authorization for operation, which is regulated by the same decree, comes to regulate the environmental compliance of the relevant companies in the operational phase of the endeavor and needs to be renewed every 3 years. Montes del Plata obtained this authorization from the National Environmental Bureau, DINACEA, in June 2014, and its corresponding renewals, and the current one has been renewed until December 2026.

We believe that the Montes del Plata operation is currently in material compliance with local and national environmental regulations applicable to the operation in Uruguay.

**Forestry, Land-Use and Land Ownership Regulations**

*Chile*

The management and exploitation of forests in Chile is regulated by the Forests Law of 1931, as amended, and Decree Law No. 701 of 1974, as amended. The Forests Law and Decree Law No. 701 impose a variety of restrictions on the management and exploitation of forests. Forestry activities, including thinning, on land that is designated as preferably suited for forests or that has native or planted forests, are subject to management plans that require the approval of the CONAF. In addition, the Forests Law and Decree Law No. 701 impose fines for the harvesting or destruction of trees and shrubs in violation of the terms of a forest management plan. We believe that we are in material compliance with the Forests Law and Decree Law No. 701.

Law No. 20,283 provides for the management and conservation of native tree forests and forest development. Its purposes are the protection, recovery and improvement of native forests in order to guarantee both forest sustainability and environmental policy. This law established a fund for the conservation and sustainable management of native forests. According to this law, owners of native forests are able to exploit them so long as they have a "management plan" approved by the CONAF. Depending on the owner's approved plan, as well as other factors, the subsidy provided by the fund may vary between U.S.$200 and U.S.$400 per hectare. The law also prohibits the harvesting of native trees in certain areas and under certain conditions. Additionally, Law No. 21.595 (which systematizes economic crimes and environmental offenses) includes certain violations to forestry regulations as economic crimes. In compliance with applicable regulations, we have adopted environmentally sensitive policies towards our holdings of native forests, which are protected and preserved in their entirety. Our products come from established plantations only; we do not sell any wood derived from our native forests. Arauco's forestry operations adhere to our international control systems, which are all in accordance with current legislative and environmental sustainability standards.

We believe that we are in material compliance with Law No. 20,283. See "Item 4. Information on our Company—Description of Business—Forestry Activity."

*Brazil*

Environmental laws and regulations relating to the management and exploitation of forests and the protection of Brazilian plants and wildlife govern our Brazilian forestry operations. Under this regulatory framework, Brazilian authorities establish forest preservation areas and regulate replanting of forests after harvesting.

There are discussions about certain Brazilian legal restrictions on the acquisition of rural properties by foreign companies and by Brazilian companies controlled by foreign persons. Those restrictions are contained in the Opinion issued by the Office of the General Counsel to the Federal Government in August 2010, which has been subject to several judicial challenges. Currently, there is a pending litigation before the Supreme Court (Highest Court in Brazil) to determine if Federal Law No. 5,709/1971 is applicable to Brazilian companies with foreign shareholders, as it could arguably be contrary to the Brazilian constitution. Our local counsel has advised us that

all the transactions consummated by our Brazilian subsidiaries have been duly registered by the competent notaries public, and that future acquisitions may be subject to approvals and/or restrictions depending on the Supreme Court's final decision.

We believe that our Brazilian operations are in material compliance with the applicable regulatory framework.

*Argentina*

The management and exploitation of forests in Argentina is regulated by National Law No. 13,273, National Law No. 25,080 (as amended and extended by Laws No. 26,432 and 27,487), National Decree No. 710, Provincial Law No. 854, Provincial Law No. 3,426 and other regulations promulgated thereunder, which collectively constitute the regulatory framework. The regulatory framework imposes a variety of restrictions on the management and exploitation of forests in Argentina. The regulatory framework regulates the replanting of land after harvesting.

On December 28, 2011, National Law No. 26,737 was promulgated, which established limitations on the ability of foreigners to purchase rural land in Argentina. This law provides that foreigners cannot acquire more than 15% of all rural land in the country, and that no foreigner can individually hold more than 30% of said 15%. For the purposes of the National Law No. 26,737, rural land is all land located outside the urban area. Even though National Law No. 26,737 has been repealed by the DNU 70/2023 ("DNU"), it has been judicially challenged.

We believe that our Argentine operations are in material compliance with the applicable regulatory framework.

*Uruguay*

The management and exploitation of forests in Uruguay is regulated primarily by Law No. 15,939 (as amended by Law No. 18,083 and by the regulatory decree No. 452/988), which has declared forestry activity as an area of national interest. This law classifies forests into three categories: protectors, yield and general, and provided certain tax and financial benefits related to forests classified as protectors and yield located in areas classified as forestry priority. In order to obtain such classification, interested parties must submit a forestry management plan to the General Forestry Bureau. This law also establishes certain conservation requirements and controls for each category of forest.

These regulations are also included in Decree No. 333/004 (General Principles and Basic Technical Standards to achieve soil and water rational and sustainable use and their recovery) and Decree No. 405/008 (Responsible and Sustainable Use of Soil).

Additionally, forest activity is subject to environmental and soil care regulations. According to Law No. 16,466 and Decree No. 349/005, plantations of more than 100 hectares need prior environmental authorization. Law No. 15,239 also provides certain measures that must be adopted to reduce erosion and degradation of the soil to promote its restoration when necessary. Forestry regulations from local municipalities may also require additional permits depending on the forest location.

In December 2021, Decree No. 405/021 was issued by the Executive Branch and proposed changes in the regulation of forest plantations. The Decree set parameters for the creation of the Environmental Registry of Forest Plantations applicable to new forest plantations from one hundred to forty hectares. The Decree also adjusted the definitions of forest land and requirements (Special Environmental Authorization—AAE) for new plantations of one hundred or more hectares in soils already forested with no previous environmental authorization.

In January 2025, the executive branch issued Decree No. 3/025 proposing changes that clarified the regulation of forest plantations. The Decree declared that reforestation activities are not to be considered as new plantations, as they do not entail a change in the land use, and also inserted the allowance for the owner of the plantation to plant (at its own risk) after 30 days of presenting the reforestation request, while the authorization request is still under analysis by DINACEA.

We believe that the Montes del Plata forestry operations are in material compliance with the applicable regulatory framework.

**Item 5. Operating and Financial Review and Prospects**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION,** 

**RESULTS OF OPERATIONS AND CASH FLOWS**

The following discussion is based on and should be read in conjunction with our audited consolidated financial statements and the notes thereto, included elsewhere in this annual report. Our consolidated financial statements are prepared in accordance with IFRS Accounting Standards and presented in U.S. dollars.

**Overview**

We derive our revenues from the sale of bleached and unbleached pulp, wood products such as MDF, PBO, plywood, sawn timber and remanufactured wood products, forestry products, such as sawlogs and pulplogs, and sales of electricity. We sell our products in domestic and export markets. As occurs with many other commodities, pulp is subject to significant cyclical price fluctuations determined by global supply and demand. Accordingly, our revenues are subject to cyclical fluctuations. Prices for wood and forestry products also fluctuate significantly. Although variations in prices tend to have the most significant effect on our results of operations, variations in sales volume and product mix, production costs and exchange rates can also have a significant impact on our results. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Fluctuations in market price for our products could adversely affect our financial condition, results of operations and cash flows".

Our business, results of operations and cash flows depend, to a large extent, on the level of economic activity, on government and foreign exchange policies and on political and economic developments in our principal markets.

The regional distribution of our pulp sales according to year was as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In 2023, 65.0% of our sales of pulp were to customers in Asia, 18.4% to customers in Central and South America and 12.6% to customers in Europe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In 2024, 65.6% of our sales of pulp were to customers in Asia, 15.7% to customers in Central and South America, 13.8% to customers in Europe and 4.9% to customers in other regions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In 2025, 68.2 % of our sales of pulp were to customers in Asia, 15.1 <sup>% to customers in Central and South America,</sup> 11.8 <sup>% to customers in Europe and</sup> 4.9 <sup>% to customers in other regions.</sup>

The regional distribution of our sales of wood products according to year was as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In 2023, 58.7% of our sales of wood products were to customers in North America and 31.9% to customers in Central and South America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In 2024, 59.6% of our sales of wood products were to customers in North America and 31.6% to customers in Central and South America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In 2025, 57.2 % of our sales of wood products were to customers in North America and 34.8 <sup>% to customers in Central and South America.</sup>

Our business, earnings and prospects may be materially and adversely affected by developments in the markets we operate within, including inflation, interest rates, currency fluctuations, protectionism, government subsidies, price and wage controls, exchange control regulations, taxation, expropriation or social instability, as well as by political, economic or diplomatic developments. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Worldwide competition in the markets for our products may adversely affect our business, financial condition, results of operations and cash flows".

Our financial condition, results of operations and cash flows are affected by, to a significant degree, economic conditions in Chile, Argentina, Brazil, Uruguay, the United States, Canada and Mexico. See "Item 3. Key Information—Risk Factors—Risks Relating to Chile," "—Risks Relating to the United States and Canada," "-Risks Relating to Brazil," "—Risks Relating to Argentina," "—Risks Relating to Uruguay," "—Risks Relating to Other Markets".

**Exchange Rate Fluctuations**

We generally express our export prices in U.S. dollars, whereas our domestic sales in Chile are generally priced in Chilean pesos; domestic sales in Brazil are priced in Brazilian reals; domestic sales in Argentina are generally priced in Argentine pesos, and domestic sales in Mexico are priced in Mexican pesos. To the extent that these local currencies depreciate against the U.S. dollar, our revenues from sales priced in local currencies may be adversely affected when expressed in U.S. dollars.

The effect of exchange rate fluctuations is partially offset by the fact that certain of our operating expenses are denominated in U.S. dollars (such as our freight costs and selling expenses in the form of commissions paid to our sales agents abroad), and a significant part of our indebtedness is denominated in U.S. dollars. As of December 31, 2025, our U.S. dollar-denominated indebtedness was U.S.$

4.3 billion. In addition, if the U.S. dollar appreciates against the local currency in any of our export markets, we must, from time to time, express our sales in that local currency to compete effectively.

Future developments in the Chilean, Argentine, Brazilian, Uruguayan, Mexican, Canadian and U.S. economies may impair our ability to proceed with our strategic plan, including with respect to pricing. For additional discussion regarding the risks we face in each of the aforementioned markets, see "Item 3. Key Information—Risk Factors— Risks Relating to Chile," "—Risks Relating to Argentina," "—Risks Relating to Brazil," "—Risks Relating to Uruguay," "—Risks Relating to Mexico" and "—Risks Relating to the United States and Canada."

**Fluctuations in Market Prices for our Products**

In recent years, our revenues have been affected by price level volatility in our domestic and export markets. The prices for each of our pulp, wood and forestry products depend on the markets in which they are sold. While prices are generally similar for a given product on a global basis, domestic market conditions affect prices in markets such as Asia, Central and South America, Europe and the United States.

The following table sets forth, for the years indicated, average unit sales prices for our products.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, <sup>(1)</sup>** | **Year ended December 31, <sup>(1)</sup>** | **Year ended December 31, <sup>(1)</sup>** |
|  | **2025** | **2024** | **2023** |
|  | **(U.S.$ per tonne) <sup>(3)</sup>** | **(U.S.$ per tonne) <sup>(3)</sup>** | **(U.S.$ per tonne) <sup>(3)</sup>** |
| **Product <sup>(2)</sup>**<br>|  |  |  |
| *Pulp*<br>|  |  |  |
| Bleached pulp&nbsp;&nbsp;&nbsp;&nbsp; <br>| 622.9 | 710.8 | 667.6 |
| Unbleached pulp <br>| 757.6 | 758.3 | 692.5 |
| Logs (U.S.$ per cubic meter) <sup>(3)</sup>&nbsp;&nbsp;&nbsp;&nbsp; <br>| 30.0 | 35.4 | 45.1 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | (U.S.$ per cubic meter) <sup>(3)</sup> | (U.S.$ per cubic meter) <sup>(3)</sup> | (U.S.$ per cubic meter) <sup>(3)</sup> |
| *Wood Products*<br>|  |  |  |
| Sawn timber&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>| 265.8 | 261.5 | 266.5 |
| Remanufactured wood products&nbsp;&nbsp;&nbsp;&nbsp; <br>| 702.4 | 713.5 | 797.2 |
| Plywood <br>| 590.3 | 582.1 | 618.9 |
| Panels <br>| 410.1 | 402.3 | 435.5 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Calculated as average unit prices for the year based on our internally collected data.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Each category of product contains different grades and types and the shipping terms vary with the product, as well as the customer.

&nbsp;&nbsp;&nbsp;&nbsp;(3) We generally quote our prices in U.S. dollars for export sales and in U.S. dollars, Chilean pesos, Argentine pesos, Brazilian reals or Mexican pesos, as applicable for domestic sales.

**Pulp Prices**

*Overview*

Historically, world pulp prices have been subject to significant fluctuations over short periods of time. Pulp prices depend primarily on worldwide demand, world production capacity, worldwide pulp and paper inventory levels and availability of substitutes, and in general terms, are directly related to global economic growth. All of these factors are beyond our control. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Fluctuations in market price for our products could adversely affect our financial condition, results of operations and cash flows".

Prices for bleached grades of hardwood pulp, including eucalyptus, generally follow the same cyclical pattern as prices for softwood pulp. However, historically softwood pulp has had higher prices mainly due to lower global supply. Moreover, during the last five years, the majority of the added global pulp production capacity has been dedicated to production of hardwood pulp, particularly eucalyptus pulp. Prices for dissolving pulp normally fluctuate depending on variables similar to those that affect bleached kraft pulp, such as worldwide demand and world production capacity for dissolving pulp. Additionally, dissolving pulp prices are affected by price differences between paper- grade pulp and dissolving pulp, mainly due to the fact that a significant portion of the worldwide dissolving pulp production capacity comes from mills that can also switch from producing paper-grade pulp to dissolving pulp, and vice versa, thereby affecting the supply of dissolving pulp.

Prices for unbleached softwood market pulp also follow cyclical patterns related to worldwide demand, stock levels and supply. Based on information published by Hawkins Wright Ltd., in 2025 unbleached softwood market pulp represented about

3.8 % of the total capacity in the global wood pulp market. The majority of unbleached softwood pulp is sold in Asia, and its price in that market does not necessarily follow the cycle of prices for softwood or hardwood in other markets.

During 2021, average prices increased 43.4% for NBSK – Europe, which reached U.S.$1,260.67 per tonne at the end of the year, and increased 12.6% for NBSK – China which reached U.S.$755.05 by year end. BHKP – Europe increased 67.6% reaching U.S.$1,140.0 by year end. In the case of BHKP – China, prices increased 15.5%, reaching U.S.$576.42 by year end. In general, prices across all fibers and markets increased, especially during the first half of the year, mostly due to normalization of demand and certain supply issues caused by the COVID-19 pandemic. During the second half of the year, prices remained stable and at high levels in European markets and adjusted downwards somewhat on Chinese markets.

During 2022, average prices increased 13.4% for NBSK - Europe, which reached U.S.$1,429.03 per tonne at the end of the year, and increased 17.2% for NBSK – China, which reached U.S.$884.99 by year end. BHKP - Europe increased 21.1% reaching U.S.$1,380.00 by year end. In the case of BHKP – China, prices increased 43.6% reaching U.S.$827.59 by year end. In general, prices across all fibers and markets increased in 2022, mainly in the first half of the year due to logistic issues and restricted supply because of the conflict between Russia and Ukraine. During the second half of the year, prices remained relatively stable and at the end of the year, prices slightly decreased due to a normalization of logistic issues and a relative stabilization of inventories.

During 2023, average prices decreased 13.0% for NBSK - Europe, which reached U.S.$1,242.99 per tonne at the end of the year and decreased 15.8% for NBSK - China which reached U.S.$745.25 by year end. BHKP - Europe decreased 27.0% reaching U.S.$1,007.96 by year end. In the case of BHKP - China, prices decreased 21.1% reaching U.S.$653.35 by year end. In general, prices across all fibers and markets decreased, especially during the first half of the year, mostly due to high inventories, low paper production and new capacity in the market. During the second half of 2023, prices increased in both European and Chinese markets mainly due to higher demand.

During 2024, average prices increased 19.2% for NBSK - Europe, which reached U.S.$1,481.62 per tonne at the end of the year, and increased 3.5% for NBSK - China which reached U.S.$771.66 by year end. BHKP - Europe decreased 0.8% reaching U.S.$1,000.00 by year end. In the case of BHKP - China, prices decreased 16.5% reaching U.S.$545.39 by year end. In general, prices across all fibers and markets increased during the first half of the year. While BHKP – China remained stable, conditions in Europe strengthened due to logistical disruptions in the Suez Canal, which affected incoming shipments of paper products. Additionally, supply constraints were exacerbated by both operational and non-operational issues at certain mills. However, during the third quarter of 2024, prices began to decrease, mainly due to increased paper production and supply disruptions stemming from the ramp-up of two new pulp mills, but prices began to stabilize in all fibers towards year end.

During 2025, average prices increased 1.1% for NBSK - Europe, which reached U.S.$1,498.31 per tonne at the end of the year, and decreased 10.3% for NBSK - China which reached U.S.$692.26 by year end. BHKP - Europe increased 10.0% reaching U.S.$1,100.00 by year end. In the case of BHKP - China, prices increased 3.1% reaching U.S.$562.03 by year end. In general, prices across most fibers and markets increased during the first quarter of 2025; however, market conditions weakened toward the end of such period as a result of trade-related uncertainty. During the second and third quarters of 2025, prices declined across regions, primarily driven by oversupply resulting from new production capacity, reduced consumption in key paper grades and cautious purchasing activity in China. During the fourth quarter of 2025, market conditions stabilized, with modest price improvements observed in China and relatively steady price levels in Europe, notwithstanding continued moderate overall demand.

*Prices of Northern Bleached Softwood Kraft Pulp (NBSK - Europe) (1)*

The following table sets forth the prices for NBSK – Europe, as listed on the NBSK – Europe index, as of the dates indicated, as well as the percentage variation with respect to the previous date:

---

| | | |
|:---|:---|:---|
| **List <br>Price <br>as <br>of <br>December <br>31,**<br>| **U.S.$/tonne** | **Change <br>YoY** |
| 2023<br>| 1242.99 | (13.0)%<br>|
| 2024<br>| 1481.62 | 19.2%<br>|
| 2025<br>| 1498.31 | 1.1%<br>|

---

*Prices of Northern Bleached Softwood Kraft Pulp (NBSK - China) (1)*

The following table sets forth the prices for NBSK – China, as listed on the NBSK – China index, as of the dates indicated, as well as the percentage variation with respect to the previous date:

---

| | | |
|:---|:---|:---|
| **List <br>Price <br>as <br>of <br>December <br>31,**<br>| **U.S.$/tonne** | **Change <br>YoY** |
| 2023<br>| 745.25 | (15.8)%<br>|
| 2024<br>| 771.66 | 3.5%<br>|
| 2025<br>| 692.26 | (10.3)%<br>|

---

*Prices of Bleached Hardwood Kraft Pulp (BHKP - Europe) (1)*

The following table sets forth the prices for BHKP – Europe, as listed on the BHKP – Europe index, as of the dates indicated, as well as the percentage variation with respect to the previous date:

---

| | | |
|:---|:---|:---|
| **List <br>Price <br>as <br>of <br>December <br>31,**<br>| **U.S.$/tonne** | **Change <br>YoY** |
| 2023<br>| 1007.96 | (27.0)%<br>|
| 2024<br>| 1000.00 | (0.8)%<br>|
| 2025<br>| 1100.00 | 10.0%<br>|

---

*Prices of Bleached Hardwood Kraft Pulp (BHKP - China) (1)*

The following table sets forth the prices for BHKP – China, as listed on the BHKP – China index, as of the dates indicated, as well as the percentage variation with respect to the previous date:

---

| | | |
|:---|:---|:---|
| **List <br>Price <br>as <br>of <br>December <br>31,**<br>| **U.S.$/tonne** | **Change <br>YoY** |
| 2023<br>| 653.35 | (21.1)%<br>|
| 2024<br>| 545.39 | (16.5)%<br>|
| 2025<br>| 562.03 | 3.1%<br>|

---

(1) Source: Fastmarkets RISI.

*Prices of Unbleached Kraft Pulp (UKP)*

The following table sets forth the price of our UKP as of the dates indicated, as well as the percentage variation with respect to the previous date:

---

| | | |
|:---|:---|:---|
| **Price <br>as <br>of <br>December <br>31,**<br>| **U.S.$/tonne** | **Change <br>YoY** |
| 2023<br>| 754.66 | (9.3)%<br>|
| 2024<br>| 679.36 | (10.0)%<br>|
| 2025<br>| 617.19 | (9.2)%<br>|

---

*Source*

: Arauco.

*Prices of Dissolving Pulp*

The following table sets forth the price of our dissolving pulp as of the dates indicated, as well as the percentage variation with respect to the previous date:

---

| | | |
|:---|:---|:---|
| **Price <br>as<br> of <br>December <br>31,**<br>| **U.S.$/tonne** | **Change <br>YoY** |
| 2023<br>| 864.48 | (7.3)%<br>|
| 2024<br>| 938.63 | 8.6%<br>|
| 2025<br>| 780.35 | (16.9)%<br>|

---

*Source*

: Arauco.

\* YoY means year over year

**Wood Products Prices**

Over the last five years, the average prices for our wood products have fluctuated significantly, reflecting the effect on demand of global economic developments.

During 2021, average prices for our wood products increased 26.0% compared to 2020. Average prices for our panels increased 22.0%, and the sales volume for panels increased 8.4% compared to 2020. These increases were mainly explained by a higher demand in the global markets, and supply issues at the industry level. In 2021, average prices for our sawn timber increased 43.0%, and the volume of our sawn timber sales increased 4.5% compared to 2020, also explained by a higher demand in the global markets and generalized supply issues.

During 2022, average prices for our wood products increased 27.4% compared to 2021. Average prices for our panels increased 33.0%, and the sales volume for panels decreased 10.8% compared to 2021. Such price increases were mainly explained by a stable global demand and a stable panel consumption in North America, continuing the price levels seen at the end of 2021. In 2022, average prices for our sawn timber increased 9.7%, and the volume of our sawn timber sales decreased 8.5% compared to 2021, also explained by the same reasons.

During 2023, average prices for our wood products decreased 14.0% compared to 2022. Average prices for our panels decreased 10.2%, and the sales volume for panels decreased 9.7% compared to 2022. These decreases were mainly explained by higher interest rates, oversupply, high inventories, and political uncertainty. In 2023, average prices for our sawn timber decreased 24.8%, and the volume of our sawn timber sales increased 7.0% compared to 2022, also explained by the same reasons.

During 2024, average prices for our wood products decreased 5.6% compared to 2023. Average prices for our panels decreased 7.6%, offset by a 4.4% increase in sales volume when compared to 2023. In 2024, sales volume for our sawn timber decreased 7.7%, and average prices decreased 1.9% compared to 2023. We believe such price decreases were primarily driven by overcapacity in the market, compounded by inflation and high interest rates. Additionally, reduced market dynamism in China further contributed to the downturn. The decline in sawn timber sales volume was mainly attributed to the closure of two mills in Chile and disruptions caused by the Puerto Coronel strike, which affected shipping operations during the first half of 2024.

During 2025, average prices for our wood products increased 2.1% compared to 2024. Average prices for our panels increased 1.9%, and sales volume decreased 3.9% compared to 2024, mainly explained by a continued decline in demand throughout the year, compounded by persistent oversupply conditions. In 2025, average prices for our sawn timber increased 1.6%, and sales volume decreased 9.8% compared to 2024, mainly affected by a slow construction market and tariff-related uncertainty in some countries.

**Costs and Expenses**

**Cost of Sales**

Our major costs of sales are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· timber,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· chemicals,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· forestry labor costs,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· depreciation and amortization,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· maintenance,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· other raw materials, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· energy and fuel.

Our property, plant and equipment are depreciated on a straight-line basis over the remaining useful lives of the underlying assets. However, the amount of such depreciation that relates to our fixed production assets, such as pulp mills, panel mills and sawmills, is allocated to finished goods held as inventories and accumulates until charged to cost of sales when the finished goods are sold. Our forests and land are not depreciated.

**Distribution Costs**

Our distribution costs are comprised of our selling costs, which consist primarily of our shipping and freight costs which are the freight, port services, customs and other outbound logistical costs of shipping our products to our customers, in addition to, per tonne fees we pay to our selling agents.

**Administrative Expenses**

Our major administrative expenses are wages and salaries, expenses related to services, information technology ("IT") expenses, insurance expenses and other expenses.

**Results of Operations**

The following table provides a breakdown of our results of operations and sales volumes for the years ended December 31, 2025, 2024 and 2023. The table and the discussion that follows are based on and should be read in conjunction with our audited consolidated financial statements, including the notes thereto, as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023 included elsewhere herein. The audited consolidated financial statements included herein are prepared in accordance with IFRS Accounting Standards and presented in U.S. dollars.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** | **For <br>the <br>year <br>ended <br>December <br>31,** |
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
|  | **Sales** | **%** | **Volume** | **Sales** | **%** | **Volume** | **Sales** | **%** | **Volume** |
|  | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) | (in <br>millions <br>of <br>U.S. <br>dollars, <br>except <br>percentages <br>and <br>volume) |
| **Revenues**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Pulp**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bleached <br>pulp<sup>(1)</sup><br>| 2690.0 | 44.2 | 4318.6 | 2978.1 | 45.5 | 4190.0 | 2341.2 | 38.9 | 3506.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbleached<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pulp<sup>(1)</sup><br>| 231.0 | 3.8 | 305.9 | 215.2 | 3.3 | 283.7 | 212.0 | 3.5 | 306.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Pulp <br>Subtotal**<br>| 2920.9 | 48.0 | 4623.5 | 3193.3 | 48.8 | 4473.7 | **2553.2**  | **42.5**  | **3812.8**  |
| &nbsp;&nbsp;&nbsp;**Forestry Products**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Logs, <br>net<sup>(2)</sup><br>| 5.0 | 0.1 | 167.6 | 48.7 | 0.7 | 1377.9 | 96.2 | 1.6 | 2134.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other<sup>(2)</sup><br>| 9.9 | 0.2 | 521.5 | 56.2 | 0.9 | 2648.3 | 37.5 | 0.6 | 1945.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Forestry Subtotal<sup>(2)</sup>**<br>| <br>14.9 | <br>0.3 | <br>689.1 | 104.9 | 1.6 | 4026.2 | **133.6**  | **2.2**  | **4079.3**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Pulp and Forestry Products**<br>| <br>2935.9 | <br>48.3 | <br>- | 3298.2 | 50.4 | - | **2686.8**  | **44.7**  | **-**  |
| **Wood <br>Products**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiberboard<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;panels<sup>(2)</sup><br>| 2028.1 | 33.3 | 4945.8 | 2071.1 | 31.6 | 5148.4 | 2148.3 | 35.7 | 4932.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sawn <br>timber<sup>(2)</sup><br>| 339.4 | 5.6 | 1277.0 | 370.3 | 5.7 | 1415.7 | 409.0 | 6.8 | 1534.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remanufactured<br> wood<br> products<sup>(2)</sup><br>| <br>280.0 | <br>4.6 | <br>398.7 | 280.1 | 4.3 | 392.5 | 280.5 | 4.7 | 351.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plywood<br>| 310.6 | 5.1 | 526.2 | 322.8 | 4.9 | 554.5 | 293.4 | 4.9 | 474.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Wood Products Subotal**<br>| <br>2958.1 | <br>48.6 | <br>7147.7 | 3044.2 | 46.5 | 7511.0 | **3131.1**  | **52.1**  | **7292.8**  |
| &nbsp;&nbsp;&nbsp;Energy<br>| 113.9 | 1.9 |  | 102.5 | 1.6 |  | 89.8 | 1.5 |  |
| &nbsp;&nbsp;&nbsp;Other<br>| 76.2 | 1.3 |  | 101.4 | 1.5 |  | 104.1 | 1.7 |  |
| **Total revenues**<br>| 6084.1 | **100**  |  | 6546.1 | 100 |  | **6011.8**  | **100**  |  |
| **Cost <br>of <br>sales**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Timber<br>| (985.3) |  |  | (963.7) |  |  | (1068.7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forestry <br>labor costs and other services<br>| (635.3) |  |  | (702.3) |  |  | (692.5) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance costs<br>| (326.3) |  |  | (355.7) |  |  | (355.4) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chemical <br>costs<br>| (655.1) |  |  | (662.7) |  |  | (649.4) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation <br>and<br>amortization<br>| (591.7) |  |  | (584.3) |  |  | (535.2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other <br>costs <br>of <br>sales<br>| (1353.2) |  |  | **(1365.3)**  |  |  | **(1442.9)**  |  |  |
| **Total <br>cost <br>of sales**<br>| (4546.9) |  |  | **(4634.1)**  |  |  | **(4744.1)**  |  |  |
| **Gross profit**<br>| 1537.3 | 25.3 |  | 1912.0 | 29.2 |  | 1267.7 | 21.1 |  |
| &nbsp;&nbsp;&nbsp;Other <br>income<br>| 324.0 |  |  | 597.1 |  |  | 573.0 |  |  |
| &nbsp;&nbsp;&nbsp;Distribution <br>costs<br>| (677.7) |  |  | (695.4) |  |  | (693.0) |  |  |
| &nbsp;&nbsp;&nbsp;Administrative expenses<br>| (560.8) |  |  | (565.0) |  |  | (624.3) |  |  |
| &nbsp;&nbsp;&nbsp;Other <br>expense by function<br>| (130.3) |  |  | (212.2) |  |  | (480.3) |  |  |
| &nbsp;&nbsp;&nbsp;**Profit <br>(loss) <br>from <br>operating activities**<br>| 492.5 |  |  | 1036.4 |  |  | **43.0**  |  |  |
| &nbsp;&nbsp;&nbsp;Financial <br>income<br>| 62.6 |  |  | 66.4 |  |  | 131.7 |  |  |
| &nbsp;&nbsp;&nbsp;Financial <br>costs<br>| (409.7) |  |  | (397.9) |  |  | 373.5 |  |  |
| &nbsp;&nbsp;&nbsp;Share of profit <br>(loss) <br>of <br>associates <br>and <br>joint <br>ventures <br>accounted <br>for <br>using <br>equity method<br>| (3.9) |  |  | (45.8) |  |  | 7.7 |  |  |
| &nbsp;&nbsp;&nbsp;Exchange <br>rate <br>differences<br>| (60.7) |  |  | (12.4) |  |  | (194.7) |  |  |
| &nbsp;&nbsp;&nbsp;**Profit <br>(loss) <br>before <br>income <br>tax**<br>| 80.7 |  |  | 646.7 |  |  | **(385.8)**  |  |  |
| &nbsp;&nbsp;&nbsp;Income <br>tax<br>| 39.8 |  |  | (170.4) |  |  | 27.3 |  |  |
| **Net <br>income <br>(loss)**<br>| 40.9 |  |  | 476.3 |  |  | **(358.5)**  |  |  |

---

(1) Volumes measured in thousands of tonnes. Does not include subproduct sales (i.e., energy, chemicals) which are presented in our pulp reportable segment in Note 24 in our audited consolidated financial statements.

(2) Volumes measured in thousands of cubic meters. Does not include subproduct sales (i.e. energy, chemicals) which are presented in our wood products business segment in Note 24 in our audited consolidated financial statements.

**Year Ended December 31, 2025 Compared to Year Ended December 31, 2024**

**Revenues**

Revenues decreased

7.1 %, from U.S.$6,546.1 million in 2024 to U.S.$

6,084.1

million in 2025, primarily as a result of a

11.0 %, or U.S.$

362.3 million decrease in revenues from pulp and forestry product sales, and a

2.8 %, or U.S.$

86.1 million, decrease in revenues from wood products sales.

*Pulp*

. Revenues from bleached and unbleached pulp decreased

8.5 %, from U.S.$3,193.3 million in 2024 to U.S.$

2,920.9

million in 2025, mainly due to a

11.5 % decrease in average prices, offset by a

3.3 % increase in sales volume. Sales of bleached pulp decreased

9.7 % mainly due to a

12.4 % decrease in average prices, offset by a

3.1 % increase in sales volume. Revenues from unbleached pulp increased

7.3 %, mainly due to a

7.5 % increase in sales volume, while average prices remained stable.

Revenues from sales of forestry products decreased

85.8 %, from U.S.$104.9 million in 2024 to U.S.$

14.9 million in 2025, mainly due to a U.S.$

43.7 million decrease in revenues from sales of logs, primarily due to a

87.8 % decrease in sales volume and additionally due to a U.S.$

46.3 million decrease in revenues from sales of other forestry products, mainly due to a 80.3% decrease in sales volume.

*Wood Products.* 

Revenues from wood products decreased

2.8 %, from U.S.$3,044.2 million in 2024 to U.S.$

2,958.1

million in 2025, primarily due to a

4.8 % decrease in sales volume, offset by a

2.1 % increase in average prices.

Revenues from panels decreased

2.1 %, from U.S.$2,071.1 million in 2024 to U.S.$

2,028.1

million in 2025, due to a

3.9 % decrease in sales volume, offset by a

1.9 % increase in average prices.

Revenues from sawn timber decreased

8.3 %, from U.S.$370.3 million in 2024 to U.S.$

339.4 million in 2025, mainly due to a

9.8 % decrease in sales volume, partially offset by a

1.6 % increase in average prices.

Revenues from plywood decreased

3.8 %, from U.S.$322.8 million in 2024 to U.S.$

310.6 million in 2025, mainly due to a

5.1 % decrease in sales volume, offset by a

1.4 % increase in average prices.

Revenues from remanufactured wood products remained stable, from U.S.$280.1 million in 2024 to U.S.$

280.0 million in 2025, mainly due to a decrease of

1.6 % in average prices offset by a

1.6 % increase in sales volume.

*Other revenue.* 

Revenues from other sources, consisting mainly of revenues from sales of energy, chemicals and other services, decreased

6.7 %, from U.S.$203.8 million in 2024 to U.S.$

190.2 million in 2025, mainly as a result of a U.S.$

25.1 million decrease in chemicals and other services, offset by a U.S.$

11.5 million increase in energy sales.

**Cost of sales**

Cost of sales decreased

1.9 %, from U.S.$4,634.1 million in 2024 to U.S.$

4,546.9

million in 2025, primarily as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 9.5% decrease in forestry labor costs and other services, from U.S.$702.3 million in 2024 to U.S.$635.3 million ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 10.8 % decrease in energy and fuel, from U.S.$276.5 million in 2024 to U.S.$246.8 million in 2025, mainly due to a decrease in our fuel consumption, combined with a decrease in its average cost; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 8.3 % decrease in maintenance costs, from U.S.$355.7 million in 2024 to U.S.$326.3 million in 2025, due to a decrease in production in Uruguay and the absence of a programed stoppage in Argentina.

**Gross Profit**

As a percentage of total revenue, our gross profit decreased from 29.2% in 2024 to

25.3 % in 2025, due to a decrease of

7.1 % in revenues, partially offset by a

1.9 % decrease in our cost of sales.

**Other income**

Other income decreased

45.7 %, from U.S.$597.1 million in 2024 to U.S.$

324.0 million in 2025. This was mainly driven by a U.S.$

354.1 million decrease in gain on sales of subsidiaries and associates driven by

the sale of certain forestry operations in Brazil during 2024

. This decrease was partially offset by a U.S.$

45.6 million increase in

the fair value of our biological assets compared to 2024, mainly related to our forests in Argentina and Brazil.

**Distribution costs**

Distribution costs decreased

2.5 %, from U.S.$695.4 million in 2024 to U.S.$

677.7 million in 2025, primarily as a result of a

2.9 % decrease in freight costs, mainly driven by

a decrease in our sales volume in North America and in Chile

. This decrease was partially offset by a

9.5 % increase in shipping internment, warehousing, stowage, customs and other costs. For more information, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company—We depend on free international trade as well as economic and other conditions in our principal markets."

As a percentage of revenues, distribution costs increased to

11.1%

, from 10.6% in 2024.

**Administrative expenses**

Administrative expenses decreased

0.7 %, from U.S.$565.0 million in 2024 to U.S.$

560.8 million in 2025, primarily as a result of a

17.7 % or U.S.$

8.7 million decrease in insurance, and a

15.8 % or U.S.$

6.5 million decrease in third-party variable services. This decrease was offset by a

21.2 % increase in

property taxes, city permits and rights, a 15.0

% increase in

computer services and a 2.0

% increase in

wages and salaries.

As a percentage of revenues, administrative expenses increased to

9.2 % in 2025, from 8.6% in 2024.

**Other expenses**

Other expenses decreased 38.6

%, from U.S.$212.2 million in 2024 to U.S.$

130.3 million in 2025, mainly due to

:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 45.1% decrease in o perating expenses related to restructuring or from plants stoppage or closed, mainly related to the stoppage of our Esperanza Mill and conservation costs related to Licancel mill, both during 2024 ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 44.0% decrease in i mpairment provision for property, plant and equipment, provision for inventory obsolescence, withdrawals and others , mainly due to impairment provisions during 2024, mainly related to El Colorado sawmill in Chile and our Pien mill in Brazil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 67.2% decrease in other expenses related to a tax charge in Argentina in 2024 in connection with certain foreign currency transactions and a reduction in fiscal expenses in Brazil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 41.1% decrease in l oss of forest due to fire s, mainly due to lower expenses related to losses in our biological assets in Brazil; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 28.8% decrease in other taxes, mainly due to lower taxes paid in the United Kingdom and Chile.;

**Finance costs**

Finance costs increased

3.0 % from U.S.$397.9 million in 2024 to U.S.$

409.7 million in 2025

.

**Exchange rate differences**

Losses from exchange rate differences increased

389.9 %, from a loss of U.S.$12.4 million in 2024 to a loss of U.S.$

60.7 million in 2025, primarily due to

fluctuations in the Brazilian real

.

**Income tax**

We recorded an income tax expense of U.S.$

39.8 million in 2025 compared to an income tax expense of U.S.$170.4 million in 2024. This decrease was primarily associated to a lower gross profit due to a decrease in average prices of most of the products we commercialize.

**Net income**

Net income decreased U.S.$

435.4 million, from U.S.$476.3 million in 2024 to U.S.$

40.9 million in 2025. This is mainly explained by

a lower operational result in our pulp and forestry business segment, driven by a decrease in average pulp prices

and a decrease in other income driven by

the sale of certain forestry operations in Brazil during 2024.

**Year Ended December 31, 2024 Compared to Year Ended December 31, 2023**

Revenues

Revenues increased 8.9%, from U.S.$6,011.8 million in 2023 to U.S.$6,546.1 million in 2024, primarily as a result of a 22.8%, or U.S.$611.4 million, increase in revenues from pulp and forestry product sales, partially offset by a 2.8%, or U.S.$86.9 million, decrease in revenues from wood products sales.

*Pulp*

. Revenues from bleached and unbleached pulp increased 25.1%, from U.S.$2,553.2 million in 2023 to U.S.$3,193.3 million in 2024, mainly due to a 17.3% increase in sales volume and a 6.6% increase in average prices. Sales of bleached pulp increased 27.2% mainly due to a 19.5% increase in sales volume and a 6.5% increase in average prices. Revenues from unbleached pulp increased 1.5%, mainly due to a 9.5% increase in average prices, partially offset by a 7.3% decrease in sales volume. In general, prices across all fibers and markets saw an increase during the first half of 2024. While conditions in China remained stable, Europe experienced stronger markets dynamics, driven by logistical disruptions and supply constraints, which were further exacerbated by operational and non-operational challenges at certain mills. However, during the third quarter of 2024, pulp prices began to decline, primarily driven by reduced demand due to low seasonality, but most of all due to oversupply and significant spot volume available. Despite this downturn, prices for all fibers began to stabilize toward the end of the year.

Revenues from sales of forestry products decreased 21.5%, from U.S.$133.6 million in 2023 to U.S.$104.9 million in 2024, mainly due to a U.S.$47.4 million decrease in revenues from sales of logs, primarily due to a 35.4% decrease in sales volume and a 21.5% decrease in average prices.

*Wood Products.* 

Revenues from wood products decreased 2.8%, from U.S.$3,131.1 million in 2023 to U.S.$3,044.2 million in 2024, primarily due to a 5.6% decrease in average prices, partially offset by a 3.0% increase in sales volume.

Revenues from panel products decreased 3.6%, from U.S.$2,148.3 million in 2023 to U.S.$2,071.1 million in 2024, due to a 7.6% decrease in average prices, partially offset by a 4.4% increase in sales volume.

Revenues from sawn timber decreased 9.5%, from U.S.$409.0 million in 2023 to U.S.$370.3 million in 2024, mainly due to a 7.7% decrease in sales volume and a 1.9% decrease in average prices.

Revenues from plywood increased 10.0%, from U.S.$293.4 million in 2023 to U.S.$322.8 million in 2024, mainly due to a 16.9% increase in sales volume offset by a 5.9% decrease in average prices.

Revenues from remanufactured wood products sales decreased 0.1%, from U.S.$280.5 million in 2023 to U.S.$280.1 million in 2024, mainly due to a decrease of 10.5% in average prices offset by a 11.6% increase in sales volume.

*Other revenue.* 

Revenues from other sources, consisting mainly of revenues from sales of energy, chemicals and other services, increased 5.1%, from U.S.$193.9 million in 2023 to U.S.$203.8 million in 2024, mainly as a result of a U.S.$12.7 million increase in energy sales.

**Cost of sales**

Cost of sales decreased 2.3%, from U.S.$4,744.1 million in 2023 to U.S.$4,634.1 million in 2024, primarily as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 9.8% decrease in timber costs, from U.S.$1,068.7 million in 2023 to U.S.$963.7 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 17.4% decrease in other raw materials, from U.S.$285.8 million in 2023 to U.S.$236.1 million in 2024, mainly due to cost reductions in paint, paper and other materials mainly in North America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 22.4% decrease in cost of electricity, from U.S.$65.2 million in 2023 to U.S.$50.6 million in 2024, due to a decrease in the price of electricity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 4.9% decrease in other indirect costs, from U.S.$233.9 million in 2023 to U.S.$222.6 million in 2024, primarily as a decrease in some operational cost centers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 2.3% decrease in staff expenses, from U.S.$431.4 million in 2023 to U.S.$421.6 million in 2024, due to the indefinite suspension in 2024 of the Colorado sawmill and the Horcones II Sawmill in 2023.

**Gross Profit**

As a percentage of total revenue, our gross profit increased from 21.1% in 2023 to 29.2% in 2024, due to an increase of 8.9% in revenues and a 2.3% decrease in our cost of sales.

**Other income**

Other income increased 4.2%, from U.S.$573.0 million in 2023 to U.S.$597.1 million in 2024. This was mainly driven by a U.S.$354.1 million increase in gain on sales of subsidiaries and associates driven by the sale of certain forestry operations in Brazil. This gain was partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a U.S.$187.6 million decrease in net income from insurance compensation, mainly related to our receipts in 2023 of U.S.$199.6 million in payments of insurance claims related to damages in our Valdivia and Constitución mills; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a U.S.$105.5 million decrease in the fair value of our biological assets compared to 2023, primarily due to due to a change in the discount rate applied.

**Distribution costs**

Distribution costs increased 0.3%, from U.S.$693.0 million in 2023 to U.S.$695.4 million in 2024, primarily as a result of a 14.4% increase in port services, mainly driven by an increase in our pulp exports. This increase was partially offset by a decrease in other selling costs due to the elimination of certain export duties in Argentina in September 2023. For more information, see "Item 3. Key Information—Risk Factors—Risks Relating to the Company—We depend on free international trade as well as economic and other conditions in our principal markets."

As a percentage of revenues, distribution costs decreased to 10.6% in 2024, from 11.5% in 2023.

**Administrative expenses**

Administrative expenses decreased 9.5%, from U.S.$624.3 million in 2023 to U.S.$565.0 million in 2024, primarily as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 10.9% or U.S.$26.8 million decrease in wages and salaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 35.0% or U.S.$11.4 million decrease in property taxes, city permits and rights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a 21.2% or U.S.$8.0 million decrease in computer services

As a percentage of revenues, administrative expenses decreased to 8.6% in 2024, from 10.4% in 2023.

**Other expenses**

Other expenses decreased 55.8%, from U.S.$480.3 million in 2023 to U.S.$212.2 million in 2024, primarily as a result of a U.S.$192.3 million decrease in operating expenses related to the stoppage or closure of mills, which decreased from U.S.$236.5 million in 2023 to U.S.$44.2 million in 2024. This decrease in 2024 was mainly attributed to extraordinary expenses incurred during 2023, which included (i) operational expenses due to low production in the Line 3 of our Arauco mill, during its ramp up process, (ii) expenses related to unplanned stoppages in our Constitución, Nueva Aldea and Licancel mills, (iii) the replacement of the dryer of our Valdivia mill and (iv) expenses related to stoppages and depreciation of Line 3 of our Arauco mill, as well as certain wood products mills. Additionally, impairment provision for property, plant and equipment, provisions for inventory obsolescence, withdrawals and others decreased from U.S.$110.6 million in 2023 to U.S.$42.6 million in 2024, primarily due to the indefinite suspension of our Licancel mill in 2023.

**Finance costs**

Finance costs increased 6.5% from U.S.$373.5 million in 2023 to U.S.$397.9 million in 2024, primarily due to higher interest payments related to: (i) bonds issued in Chile and their corresponding swaps; (ii) additional long-term lease-purchase agreements in Brazil; and (iii) bank loans in Chile and Brazil.

**Exchange rate differences**

Losses from exchange rate differences decreased 93.6%, from a loss of U.S.$194.7 million in 2023 to a loss of U.S.$12.4 million in 2024, primarily due to fluctuations of the Argentine peso.

**Income tax**

We recorded an income tax expense of U.S.$170.4 million in 2024 compared to an income tax benefit of U.S.$27.3 million in 2023. This variation was primarily associated to the effect of income taxes expenses in Chile, paid in Brazil, related to the sale of certain forestry operations in Brazil.

**Net income**

Net income increased U.S.$834.8 million, from a loss of U.S.$358.5 million in 2023 to U.S.$476.3 million in 2024. This is mainly explained by higher revenues in our pulp business segment, related to an increase in both sales volume and average prices. Also, during 2024 we recorded lower costs during the year.

**Liquidity and Capital Resources**

Our primary sources of liquidity are funds from operations, domestic and international borrowings from banks and debt offerings in the domestic and international capital markets.

We have a financial policy, approved by our Board of Directors, which serves as a framework and contains several policies aimed at preserving our liquidity and strengthening our commitment to our Investment Grade rating. Our financial policy includes a (i) liquidity policy, which maintains certain criteria regarding our liquidity management both in the short and long term, (ii) a counterparty policy which establishes limits on the maximum exposure we may have with respect to our different banking counterparties, and (iii) an investment and derivatives policies which regulate the type of investments and/or instruments we take positions into.

We believe that cash flow generated by operations, cash balances, borrowings from banks, debt offerings in the domestic and international capital markets and equity contributions are likely to be sufficient to meet our short and medium working capital, debt service and capital expenditure requirements. See "Item 4. —Information on our Company—Capital Expenditures."

**Cash Flow from Operating Activities**

Our net cash flow provided by operating activities was U.S.$

1,046.8

million in 2025 and U.S.$1,181.3 million in 2024. This decrease in 2025 was due to a U.S.$

177.8 million decrease in receipts from sale of goods and rendering of services and a decrease of U.S.$

89.4 million in other cash receipts from operating activities, mostly associated to lower revenues. Additionally, payments to and on behalf of employees increased by U.S.$

61.7 million. This decrease in cash flow from operating activities was partially offset by a decrease of U.S.$

164.3 million in payments to suppliers for goods and services.

Our net cash flow provided by operating activities was U.S.$1,181.3 million in 2024 and U.S.$740.4 million in 2023. This increase in 2024 was due to a U.S.$643.4 million increase in receipts from sale of goods and rendering of services and an increase of U.S.$144.8 million in receipts from other operating activities, mostly associated to higher revenues. This increase was partially offset by an increase of U.S.$188.7 million in payments to suppliers for goods and services and an increase of U.S.$125.2 million in receipts from other operating activities.

**Cash Flow Used in Investing Activities**

Our net cash used in investing activities was U.S.$2,431.0 million in 2025, compared to U.S.$329.0 million in 2024. This increase in 2025 was principally due to a U.S.$958.3 million decrease in cash flow resulting from the inflow in 2024 from the loss of control over subsidiaries and associates following the sale of certain of our forestry operations in Brazil. Additionally, there was a U.S.$809.5 million increase in purchase of property, plant and equipment and a U.S.$405.0 million increase in purchase of other long-term assets, both mainly related to our Sucuriú project, including anticipated payment of wood supply agreements. For more information, see "

Item 4. Information on our Company—Description of Business—History".

Our net cash used by investing activities was U.S.$329.0 million in 2024, compared to U.S.$1,333.1 million in 2023. This decrease in 2024 was principally due to a U.S.$958.3 million increase in cash flow resulting from the loss of control over subsidiaries and associates following the sale of certain of our forestry operations in Brazil.

**Cash Flow from Financing Activities**

Our net cash provided from financing activities was U.S.$1,556.5 million in 2025, compared to U.S.$305.9 million used in 2024, primarily as a result of a decrease of U.S.$1,238.1 million in repayments of borrowings and an increase of U.S.$609.4 million in total proceeds from borrowings. Additionally, we received U.S.$450.0 million as proceeds from issuance of shares

Our net cash used in financing activities was U.S.$305.9 million in 2024, compared to U.S.$645.7 million provided in 2023, primarily as a result of an increase of U.S.$1,014.7 million in repayments of borrowings and a decrease of U.S.$431.1 million in total proceeds from borrowings. Additionally, we paid U.S.$94.6 million in dividends and received U.S.$300.5 million as proceeds from issuance of shares.

**Contractual Obligations**

As is customary practice in the pulp and wood products industries, we generally do not have long-term sales contracts with our customers; rather, we maintain commercial relationships with our customers, with whom we reach agreements from time to time on specific volumes and/or prices.

**Investing Activities**

During 2025, our main investment activities were investments in (i) projects to develop new production facilities, (ii) maintaining our panel, sawmill and pulp mills, and (iii) maintaining our biological assets. Our main capital expenditures in projects during 2025 included U.S.$1,311.4 million related to industrial expenditures from our Sucuriú Project and U.S.$110.9 million related to our new production line of MDF boards in Zitácuaro, Mexico (Vikingo Project).

**Financing Activities in 2025**

On May 5, 2025, we issued a sustainability bond in the international capital markets in an aggregate principal amount of U.S.$500.0 million, with a maturity date of seven years from the issue date. The net proceeds from the issuance were used for general corporate purposes, including partial funding of the Sucuriú Project and the refinancing of debt. Notwithstanding the foregoing use of proceeds, the bonds are classified as sustainable bonds, as we have committed to allocate an amount equivalent to the proceeds from such issuance to finance or refinance, in whole or in part, one or more eligible green and/or social projects in accordance with our Sustainable Financing Framework, which has been adopted by the Company and is published on our website.

On August 20, 2025, we entered into two credit agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. an export credit agreement with Finnvera (the Finnish state-owned financing company) and four bank entities (JPMorgan Chase Bank, N.A., Banco Santander S.A., The HongKong and Shanghai Banking Corporation Limited, and Crédit Agricole Corporate and Investment Bank) for a total amount of up to U.S.$970.0 million. This credit agreement accrues interest at a rate equal to Term SOFR plus 0.80%, and 95% of the loans are guaranteed by Finnvera. The final maturity date is August 15, 2043, with semiannual amortization payments, commencing upon the occurrence of certain milestones, but no later than 2029. As of December 31, 2025, the total amount disbursed was U.S.$219.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. a credit agreement with the International Finance Corporation ("IFC") and the Inter-American Investment Corporation ("IDB Invest") for aggregate commitments of up to U.S.$1,225.0 million, which includes two types of loans: (i) A-Loans of up to U.S.$500.0 million to be funded equally by IFC and IDB Invest, which accrue interest at a rate equal to Term SOFR plus 1.30% per annum and mature on August 15, 2032, and (ii) B-Loans of up to U.S.$725.0 million, which accrue interest at a rate equal to Term SOFR plus 1.15% per annum and mature on August 15, 2030. The B-Loans are provided by JPMorgan Chase Bank, N.A., Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, Crédit Agricole Corporate and Investment Bank, The Hongkong and Shanghai Banking Corporation, Limited, Banco Santander, S.A., Bank of America, N.A., Bank of China Limited (Panama Branch), and China Construction Bank (Asia) Corporation Limited. The A-Loans and B-Loans are subject to semiannual amortization payments commencing in 2029. As of December 31, 2025, the total amount disbursed was U.S.$300.0 million.

On October 24, 2025, we issued a sustainable hybrid bond in the Chilean capital market in the aggregate principal amount of UF 20.0 million, equivalent to U.S.$875.9 million as of December 31, 2025. Interest shall accrue from October 5, 2025, and is payable semiannually on January 5 and July 5 of each year, and the principal is payable in one installment on January 5, 2058. The proceeds from the issuance were used for general corporate purposes of the Company and its subsidiaries. Notwithstanding the foregoing use of proceeds, the bonds are classified as sustainable bonds, as we have committed to allocate an amount equivalent to the net proceeds from such issuance to finance or refinance, in whole or in part, one or more eligible green and/or social projects in accordance with our Sustainable Financing Framework, which has been adopted by the Company and is published on our website.

On December 11, 2025, we prepaid in full the U.S.$275.0 million term loan with

The Bank of Nova Scotia, Mizuho Bank, Ltd., BNP Paribas and MUFG Bank, Ltd.

, which was originally scheduled to mature in November 2026.

On December 16, 2025 we received the second capital injection from our shareholders, equivalent to

U.S.$450.0 million.

See "Item 4. Information on our Company—Description of Business—History."

As of December 31, 2025, the current portion of our bank debt was U.S.$311.7 million, of which 40.3% was U.S. dollar-denominated. As of December 31, 2025, our total non-current portion of our bank debt was U.S.$944.5 million of which 68.1% was U.S. dollar-denominated.

As of December 31, 2025, we also had total capital markets borrowings (including the current portion of such debt) of U.S.$6.3 billion, of which 54.0% were U.S. dollar-denominated.

As of December 31, 2025, the weighted average maturity of our non-current debt was 12.39 years. The interest rate on our floating rate debt is determined principally by reference to the SOFR, and as of December 31, 2025, the average spread for our U.S. dollar floating rate debt over six-month SOFR was 1.24%. As of December 31, 2025, the average interest rate for our U.S.

dollar

fixed rate debt was 4.83%. As of December 31, 2025, we guaranteed obligations of U.S.$210.0 million related to Arauco North America, U.S.$107.2 million related to Arauco Celulose do Brasil, U.S.$34.8 million related to Arauco do Brasil and U.S.$2.7 million related to TecVerde Engenharia.

On September 6, 2024, we entered into a committed revolving credit facility in an aggregate amount of U.S.$450.0 million, maturing on September 6, 2027. As of the date of this annual report, no amounts had been drawn under this facility.

The instruments and agreements governing our bank loans and local bonds set limits on our incurrence of debt and liabilities through the use of financial covenants. The principal financial covenants in our bank loan agreements in effect on December 31, 2025 were the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our net debt to equity ratio must not exceed 1.2:1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our net interest coverage ratio must not be less than 2:1.

The principal financial covenant contained in our local bond agreements (except hybrid instruments) in effect on December 31, 2025 is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our net debt to equity ratio must not exceed 1.2:1.

We were in compliance with all bank loan and bond covenants as of December 31, 2025. Our U.S. dollar-denominated bonds and hybrid bonds do not contain financial maintenance covenants.

**Treasury Management**

Our corporate financial policy establishes a set of guidelines, procedures and responsibilities to minimize certain financial risks to which we are exposed. This policy, which incorporates all countries where we operate, seeks to manage such risks and is administered by our Corporate Finance Department based in Chile. Additionally, we seek to manage our financial needs to ensure long term business continuity and operations. Seeking to achieve sustainable growth over time, we also manage the funding needs associated to investment projects, while maintaining an adequate capital structure considering economic cycles that impact our business and the nature of the industries in which we operate.

We manage our treasury activities on a centralized basis. In the case of our Argentine and Brazilian subsidiaries, our Corporate Finance Department supervises and controls compliance with our financial policies, but their daily treasury activities are managed independently.

The treasury activities of our Montes del Plata joint operation are conducted pursuant to a corporate financial policy approved by its Board of Directors based on the same principles underlying our cash and deposits policy. In addition, our joint operation is supervised by a financial committee comprised of members of both shareholders' finance departments.

The treasury activities of Sonae Arauco, our joint venture with Sonae, are conducted pursuant to a corporate financial policy approved by its Board of Directors, based on the same principles underlying our cash and deposits policy. In addition, they are supervised by a financial committee comprised of members of both shareholders.

**Hedging**

We periodically review our exposure to risks arising from fluctuations in market prices related to positions assumed by us with respect to different assets and/or liabilities also used by us in order to conduct our business activity and decide, on a case-by-case basis at our senior management level whether to hedge such risks. Our Derivatives Policy establishes the minimum requisites our counterparties must meet, as well as proper procedures. As a result, from time to time we enter into hedging contracts with respect to the previously mentioned financial positions. See Note 23 to our audited consolidated financial statements included elsewhere in this annual report. We apply hedge accounting for financial instruments whose purpose is to hedge against fluctuations in prices of the aforementioned assets and/or liabilities.

**Cross Currency Swap Agreements**

We have outstanding the following cross currency swap agreements in Chile to hedge our local bonds issued in UF:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Bank <br>– <br>Country**<br>| **UF Notional**<br>**Amount** | **U.S.$Notional**<br>**Amount** | **Hedging <br>Start**<br>**Date** | **Maturity** |
| BCI <br>– <br>Chile<br>| 363636 | 14000009 | 10/30/2021 | 10/30/2029 |
| Scotiabank <br>– <br>Chile<br>| 363636 | 14016821 | 10/30/2021 | 10/30/2029 |
| Banco <br>de <br>Chile <br>– <br>Chile<br>| 363636 | 13809842 | 04/30/2019 | 10/30/2029 |
| BCI <br>– <br>Chile<br>| 363636 | 13955794 | 04/30/2023 | 10/30/2029 |
| BCI <br>– <br>Chile<br>| 363636 | 13973246 | 04/30/2023 | 10/30/2029 |
| BCI <br>– <br>Chile<br>| 363636 | 13680566 | 04/30/2023 | 10/30/2029 |
| BCI <br>– <br>Chile<br>| 363636 | 13809839 | 04/30/2023 | 10/30/2029 |
| BCI <br>– <br>Chile<br>| 636364 | 24500016 | 11/15/2021 | 11/15/2032 |
| BCI <br>– <br>Chile<br>| 636364 | 24497950 | 11/15/2021 | 11/15/2032 |
| Itaú <br>Corpbanca – <br>Chile<br>| 636363 | 26987645 | 11/15/2023 | 11/15/2032 |
| Santander <br>– <br>Chile<br>| 1272726 | 53139786 | 11/15/2023 | 11/15/2032 |
| Deutsche – Chile<br>| 1000000 | 42870394 | 04/01/2024 | 04/01/2035 |
| Deutsche – Chile<br>| 1000000 | 42870394 | 04/01/2024 | 04/01/2035 |
| JP Morgan <br>– <br>Chile<br>| 1000000 | 42870394 | 04/01/2024 | 04/01/2035 |
| Deutsche – Chile<br>| 1000000 | 43185224 | 04/01/2024 | 04/01/2035 |
| JP Morgan – Chile<br>| 1000000 | 43277070 | 04/01/2024 | 04/01/2035 |
| Santander <br>– <br>Chile<br>| 5000000 | 201340031 | 11/15/2016 | 11/15/2026 |
| Goldman <br>Sachs <br>N.A. <br>– <br>U.S.<br>| 1000000 | 40521750 | 10/10/2018 | 10/10/2028 |
| Scotiabank <br>– <br>Chile<br>| 1000000 | 40537926 | 10/10/2018 | 10/10/2028 |
| Goldman <br>Sachs <br>N.A. <br>– <br>U.S.<br>| 1000000 | 40066555 | 10/10/2018 | 10/10/2028 |
| Santander <br>– <br>Chile<br>| 3000000 | 118400504 | 10/10/2018 | 10/10/2038 |
| Santander <br>– <br>Chile<br>| 2500000 | 97971786 | 10/10/2018 | 10/10/2038 |
| JP <br>Morgan <br>– <br>U.K.<br>| 2000000 | 89387460 | 04/10/2023 | 04/10/2032 |
| Santander <br>– <br>Chile<br>| 2000000 | 90274363 | 04/10/2023 | 04/10/2032 |
| Banco <br>de <br>Chile <br>– <br>Chile<br>| 1000000 | 44572044 | 04/10/2023 | 04/10/2032 |
| JP <br>Morgan <br>– <br>U.K.<br>| 1000000 | 44572044 | 04/10/2023 | 04/10/2032 |
| JP <br>Morgan <br>– <br>U.K.<br>| 1000000 | 44559642 | 04/10/2023 | 04/10/2032 |
| BCI <br>– <br>Chile<br>| 1000000 | 43724036 | 05/15/2023 | 05/15/2033 |
| BCI <br>– <br>Chile<br>| 1000000 | 43709927 | 05/15/2023 | 05/15/2033 |
| BCI <br>– <br>Chile<br>| 1000000 | 43762973 | 05/15/2023 | 05/15/2033 |
| Banco <br>de <br>Chile <br>– <br>Chile<br>| 1000000 | 43601403 | 05/15/2023 | 05/15/2033 |
| Itaú <br>Corpbanca <br>– <br>Chile<br>| 1000000 | 43654189 | 05/15/2023 | 05/15/2033 |
| Scotiabank – Chile | 1000000 | 40788609 | 10/01/2024 | 04/01/2034 |
| BCI | 1000000 | 39046019 | 10/01/2024 | 04/01/2034 |
| Scotiabank | 1000000 | 38659980 | 10/01/2024 | 04/01/2034 |
| BCI | 1000000 | 40934100 | 10/01/2024 | 04/01/2034 |
| Bofa | 1000000 | 40890553 | 10/01/2024 | 04/01/2034 |
| Santander | 1000000 | 41198154 | 10/01/2024 | 04/01/2034 |
| BCI | 1000000 | 41039054 | 10/01/2024 | 04/01/2034 |
| JP Morgan | 1000000 | 40538132 | 10/01/2024 | 04/01/2034 |
| BCI | 1000000 | 41924946 | 10/01/2024 | 04/01/2034 |
| Banco de Chile | 1000000 | 41760550 | 10/01/2024 | 04/01/2034 |
| Santander | 2000000 | 86088143 | 10/05/2024 | 10/05/2032 |
| JP Morgan | 2000000 | 86369477 | 10/05/2024 | 10/05/2032 |
| Santander | 2000000 | 86527550 | 10/05/2024 | 10/05/2032 |
| BCI | 1000000 | 43263775 | 10/05/2024 | 10/05/2032 |
| Santander | 1000000 | 43263775 | 10/05/2024 | 10/05/2032 |
| Banco de Chile | 1000000 | 43577011 | 10/05/2024 | 10/05/2032 |
| **Total** | **55227270**  | **2307971453**  |  |  |

---

These cross currency swap agreements allow us to hedge our currency exposures. Through these agreements, we receive cash flows in UF, which allow us to comply with the terms of our outstanding bonds and pay fixed amounts in U.S. dollars, the currency in which a significant amount of our assets and sales are denominated.

We have outstanding the following cross currency swap agreements in Chile to hedge our bank loans denominated in Euro:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Bank– <br>Country**<br>| EUR <br>Notional<br>**Amount** | **U.S.$Notional**<br>**Amount** | **Hedging <br>Start**<br>**Date** | **Maturity** |
| Santander <br>– <br>Chile<br>| 52941176 | 55844706 | 06/15/2021 | 12/15/2029 |
| Banco <br>de <br>Chile <br>– <br>Chile<br>| 26470588 | 27922353 | 06/15/2021 | 12/15/2029 |
| MUFG <br>Bank <br>– <br>Japan<br>| 52941176 | 55844706 | 06/15/2021 | 12/15/2029 |
| JP <br>Morgan <br>– <br>U.S.<br>| 105882353 | 125650588 | 06/15/2021 | 12/15/2029 |
| HSBC <br>– <br>U.S.<br>| 26470588 | 27922353 | 06/15/2021 | 12/15/2029 |
| Total<br>| 264705882 | 293184706 |  |  |

---

Through these cross currency swap agreements we receive cash flows in EUR, which allow us to comply with the terms of our outstanding bank liabilities and pay fixed amounts in U.S. dollars, the currency in which a significant amount of our assets and sales are denominated.

The aggregate fair value of our UF and EUR cross currency swap agreements as of December 31, 2025, represented an asset of U.S.$

114.6 million compared to December 31, 2024, when they represented a liability of U.S.$176.5 million. This variation was primarily a result

of changes in the fair value related to fluctuations in 2025 rates both for U.S. dollars and Chilean pesos

, and also due to

variations in 2024 of the U.S. dollars to Chilean pesos exchange rate

.

**Interest Rate Swap Agreements**

We have the following interest rate swap agreements to hedge fluctuations in floating rates for long-term debt outstanding in Chile:

---

| | | |
|:---|:---|:---|
| **Bank– <br>Country**<br>| **Currency** | **U.S.$ Notional Amount** |
| Banco de Chile – <br>Chile<br>| U.S.$ | 122448980 |
| Santander <br>– <br>Chile<br>| U.S.$ | 177551020 |

---

As of December 31, 2025, the fair value of the aforementioned agreements represented an asset of U.S.$0.2 million. As of December 31, 2024, we did not have any active Interest Rate Swaps in place.

**Forward Agreements**

As of December 31, 2025, we have the following outstanding Non-Delivery Forward (NDF) agreements in Chile to hedge against fluctuations in the Brazilian Real (R$), related to payments for the Sucuriú project:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Bank <br>– <br>Country**<br>| **Exchange <br>Rate** | **Exchange <br>Rate** | **U.S.$Notional** <br>**Amount** | **Hedging Start** <br>**<br>Date** | **Maturity** |
| Mizuho – U.S.A<br>| U.S.$ | BRL | 69000000 | 12-20-2024 | 02-19-2026 |
| Bank of America – U.S.A<br>| U.S.$ | BRL | 51000000 | 12-12-2025 | 02-19-2026 |
| Itaú – U.S.A | U.S.$ | BRL | 50000000 | 10-09-2025 | 02-19-2026 |
| Mizuho – Chile | U.S.$ | BRL | 50000000 | 12-23-2024 | 03-25-2026 |
| SMBC – U.S.A | U.S.$ | BRL | 28000000 | 12-23-2024 | 03-25-2026 |
| BNP Paribas – U.S.A | U.S.$ | BRL | 49000000 | 02-12-2025 | 03-25-2026 |
| HSBC – U.S.A | U.S.$ | BRL | 15000000 | 02-12-2025 | 03-25-2026 |
| Itaú – U.S.A | U.S.$ | BRL | 50000000 | 10-07-2025 | 03-25-2026 |
| Santander – Chile | U.S.$ | BRL | 50000000 | 12-26-2024 | 05-15-2026 |
| BNP Paribas – U.S.A | U.S.$ | BRL | 86000000 | 12-26-2024 | 05-15-2026 |
| Goldman Sachs – U.S.A | U.S.$ | BRL | 27000000 | 05-15-2025 | 05-15-2026 |
| Deustche | U.S.$ | BRL | 50000000 | 10-08-2025 | 05-15-2026 |
| MUFG | U.S.$ | BRL | 50000000 | 12-27-2024 | 06-24-2026 |
| BNP Paribas | U.S.$ | BRL | 50000000 | 12-27-2024 | 06-24-2026 |
| Mizuho | U.S.$ | BRL | 32000000 | 12-27-2024 | 06-24-2026 |
| BBVA | U.S.$ | BRL | 31000000 | 05-28-2025 | 06-24-2026 |
| Goldman Sachs | U.S.$ | BRL | 50000000 | 10-10-2025 | 06-24-2026 |
| Bank of America | U.S.$ | BRL | 50000000 | 01-17-2025 | 08-17-2026 |
| HSBC | U.S.$ | BRL | 27000000 | 05-28-2025 | 08-17-2026 |
| Goldman Sachs | U.S.$ | BRL | 50000000 | 10-14-2025 | 08-17-2026 |
| Bank of America | U.S.$ | BRL | 62500000 | 01-21-2025 | 09-25-2026 |
| MUFG | U.S.$ | BRL | 62500000 | 01-21-2025 | 09-25-2026 |
| Mizuho | U.S.$ | BRL | 94000000 | 02-07-2025 | 09-25-2026 |
| Goldman Sachs | U.S.$ | BRL | 50000000 | 10-16-2025 | 09-25-2026 |
| Mizuho | U.S.$ | BRL | 60000000 | 01-22-2025 | 11-16-2026 |
| HSBC | U.S.$ | BRL | 60000000 | 01-22-2025 | 11-16-2026 |
| MUFG | U.S.$ | BRL | 40000000 | 02-06-2025 | 11-16-2026 |
| BBVA | U.S.$ | BRL | 30000000 | 10-16-2025 | 11-16-2026 |
| Mizuho | U.S.$ | BRL | 60000000 | 01-23-2025 | 12-21-2026 |
| Bank of America | U.S.$ | BRL | 66000000 | 02-05-2025 | 12-21-2026 |
| SMBC | U.S.$ | BRL | 20000000 | 10-16-2025 | 12-21-2026 |
| Bank of America | U.S.$ | BRL | 55000000 | 01-23-2025 | 02-18-2027 |
| HSBC | U.S.$ | BRL | 6000000 | 05-28-2025 | 02-18-2027 |
| Itau | U.S.$ | BRL | 30000000 | 10-14-2025 | 02-18-2027 |
| BNP Paribas | U.S.$ | BRL | 54000000 | 01-24-2025 | 03-22-2027 |
| MUFG | U.S.$ | BRL | 54000000 | 01-24-2025 | 03-22-2027 |
| Citibank | U.S.$ | BRL | 20000000 | 10-07-2025 | 03-22-2027 |
| BNP Paribas | U.S.$ | BRL | 52000000 | 01-27-2025 | 05-17-2027 |
| SMBC | U.S.$ | BRL | 52000000 | 01-27-2025 | 05-17-2027 |
| BNP Paribas | U.S.$ | BRL | 106000000 | 02-04-2025 | 05-17-2027 |
| BNP Paribas | U.S.$ | BRL | 47000000 | 01-28-2025 | 06-23-2027 |
| MUFG | U.S.$ | BRL | 63000000 | 02-04-2025 | 06-23-2027 |
| MUFG | U.S.$ | BRL | 42000000 | 01-28-2025 | 08-16-2027 |
| BNP Paribas | U.S.$ | BRL | 42000000 | 01-29-2025 | 08-16-2027 |
| Bank of America | U.S.$ | BRL | 104000000 | 02-03-2025 | 08-16-2027 |
| BNP Paribas | U.S.$ | BRL | 56000000 | 01-29-2025 | 09-22-2027 |
| Mizuho | U.S.$ | BRL | 44000000 | 02-03-2025 | 09-22-2027 |
| Goldman Sachs | U.S.$ | BRL | 26000000 | 05-27-2025 | 09-22-2027 |
| Itau | U.S.$ | BRL | 50000000 | 09-12-2025 | 09-22-2027 |
| Mizuho | U.S.$ | BRL | 26000000 | 01-29-2025 | 11-17-2027 |
| Mizuho | U.S.$ | BRL | 36000000 | 01-31-2025 | 11-17-2027 |
| BBVA | U.S.$ | BRL | 21000000 | 05-27-2025 | 11-17-2027 |
| Mizuho | U.S.$ | BRL | 31000000 | 01-29-2025 | 12-15-2027 |
| Total |  |  | 2537000000 |  |  |

---

The fair value of these agreements as of December 31, 2025, represented an asset of U.S.$

334.8 million.

As of December 31, 2025, we have the following outstanding NDF agreements in Chile to hedge against foreign exchange differences arising from lease contracts.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Bank <br>– <br>Country**<br>| **Exchange <br>Rate** | **Exchange <br>Rate** | **U.S.$Notional Amount** | **Hedging Start <br>Date** | **Maturity** |
| MUFG<br>| U.S.$ | BRL | 50000000 | 12-24-2025 | 02-19-2026 |
| MUFG<br>| U.S.$ | BRL | 50000000 | 12-24-2025 | 03-25-2026 |
| MUFG<br>| U.S.$ | BRL | 60000000 | 12-24-2025 | 05-15-2026 |
| JP Morgan<br>| U.S.$ | BRL | 77000000 | 12-23-2025 | 06-24-2026 |
| Santander - Chile<br>| U.S.$ | BRL | 77000000 | 12-22-2025 | 08-17-2026 |
| Santander – Chile<br>| U.S.$ | BRL | 75000000 | 12-22-2025 | 08-17-2026 |
| Santander – Chile<br>| U.S.$ | BRL | 40000000 | 12-22-2025 | 11-16-2026 |
| Santander – Chile<br>| U.S.$ | BRL | 60000000 | 12-22-2025 | 12-21-2026 |
| JP Morgan<br>| U.S.$ | BRL | 55000000 | 12-23-2025 | 02-18-2027 |
| JP Morgan<br>| U.S.$ | BRL | 50000000 | 12-23-2025 | 02-18-2027 |
| JP Morgan<br>| U.S.$ | BRL | 53000000 | 12-23-2025 | 02-22-2027 |
| JP Morgan<br>| U.S.$ | BRL | 47000000 | 12-23-2025 | 06-23-2027 |
| Santander - Chile<br>| U.S.$ | BRL | 63000000 | 12-22-2025 | 06-23-2027 |
| JP Morgan<br>| U.S.$ | BRL | 44000000 | 12-23-2025 | 09-22-2027 |
| Santander - Chile<br>| U.S.$ | BRL | 25000000 | 12-22-2025 | 12-15-2027 |
| Total |  |  | 826000000 |  |  |

---

The fair value of these agreements as of December 31, 2025, represented an asset of U.S.$

9.9 million.

As of December 31, 2025, we had the following forward agreements outstanding in Uruguay to hedge fluctuations in the respective local currencies:

---

| | | | |
|:---|:---|:---|:---|
| **Bank <br>– <br>Country**<br>| **Exchange <br>Rate** | **Exchange <br>Rate** | **U.S.$Notional Amount** |
| HSBC <br>– <br>Uruguay<br>| U.S.$ | UYU | 12000000<br><sup>(1)</sup> |
| Citibank <br>– <br>U.K.<br>| U.S.$ | UYU | 4050000<br><sup>(1)</sup> |
| Itaú <br>– <br>Uruguay<br>| U.S.$ | UYU | 9600000<br><sup>(1)</sup> |
| Banco <br>de <br>la <br>República <br>Oriental <br>de <br>Uruguay <br>– <br>Uruguay<br>| U.S.$ | UYU | 3450000<br><sup>(1)</sup> |
| **Total** |  |  | **29100000**  |

---

(1) U.S.$ notional amount includes multiple contract agreements.

The fair value of these agreements as of December 31, 2025, represented an asset of U.S.$

2.4 million, which includes the 50% of total fair value of the forward agreements entered into by Montes del Plata (of which Arauco owns 50% of its shares).

**Research and Development**

We invested U.S.$11.2 million in 2023, U.S.$39.7 million in 2024 and U.S.$43.2 million in 2025 on research and development.

Our business is founded on a continuous commitment to research and innovation, which ensures long-term sustainability as outlined in our strategy. By harnessing the expertise of specialists across multiple disciplines and applying technology and science with purpose and rigor, we continuously develop new and improved sustainable solutions.

Across every region in which we operate, this commitment—sustained for more than three decades—distinguishes us from our peers and constitutes a source of institutional pride. It enables us to maximize the productivity of our forest and industrial resources while maintaining a continuous focus on process improvement across our Pulp and Forestry and Wood Products businesses.

Against a global backdrop defined by the imperative need to transition toward more sustainable production models, in 2025 we commemorated the 35th anniversary of Bioforest, our applied research center dedicated to advancing science, technology, and innovation in support of a more resilient, efficient, and future-ready forestry industry. Founded in 1990 with a long-term vision, Bioforest was established to generate and apply high-level scientific knowledge in order to strengthen our sustainability, competitiveness, and international growth while anticipating the environmental, operational, and technological challenges that now define the global agenda.

In 2025, the GloNi project—an eucalyptus hybrid combining accelerated growth with high-value fiber characteristics—received two industry recognitions, further consolidating Bioforest's standing as a global benchmark in applied forestry research.

A further milestone has been the development of dissolving pulp, a raw material used in the production of natural and renewable fibers, which is manufactured at scale at our Valdivia mill and supplied to demanding international markets.

Bioforest currently brings together a team of more than 50 specialists and maintains an active collaboration network with universities, startups, and technology centers in Chile and abroad. Among its most significant advances are the consolidation of clonal silviculture and genomic selection—tools that enable the identification of superior genetic material with greater speed and precision, thereby strengthening the resilience of our forest assets in the face of climate change.

Another significant development has been the strategic partnership with TreeCo, a startup affiliated with North Carolina State University and specializing in genetic editing though CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) technology, which positions Arauco at the forefront of global forest biotechnology.

On the industrial front, Bioforest has played a key role in developing solutions that have been integrated into our day-to-day operations, including the Waste Valorization Centers (WVCs), which transform industrial by-products into materials suitable for agroforestry applications, thereby contributing to the Company's objective of achieving 100% waste valorization.

After 35 years of sustained activity, Bioforest reaffirms its role as a driver of applied knowledge, demonstrating that science developed in Chile has the capacity to transform an entire industry and extend its impact on a global scale.

These efforts have enabled our research projects to deepen the understanding of complex natural phenomena, including climate change. In support of the communities in which we operate and in furtherance of the Sustainable Development Goals (SDGs), and as a model for this and other industries, we have translated this knowledge into sustainable practices relating to biodiversity conservation and ecosystem services.

During 2025, we also advanced in the implementation of the Synfuels Biobío project, co-financed by Corfo and developed jointly by Bioforest, COPEC S.A., and Abastible S.A. since late 2024. The project's objective is to evaluate—through an industrial pilot at Arauco Mill Line 2—the production of carbon-neutral synthetic fuels using green hydrogen and biogenic CO₂. To date,

Ch$

1.6 billion in public funding has been received, of which

Ch$

245 million has been applied toward the project's conceptual and basic engineering studies and the management of the requisite environmental permits. A key milestone was reached with the approval of the pertinence determination submitted to the Environmental Evaluation Service of the Biobío Region.

Furthermore, through our collaboration with TreeCo, we obtained the first genetically edited material exhibiting traits of strategic interest to the Company.

**Critical Accounting Estimates**

See Note 1 to our audited consolidated financial statements included elsewhere in this annual report for information on Critical Accounting Estimates.

**Trend Information**

**Pulp**

According to Fastmarkets RISI, softwood pulp prices remained stable in Asia and Europe during the fourth quarter of 2025. According to Fastmarkets RISI, hardwood pulp prices increased in Europe and in China during the fourth quarter of 2025.

As of the date of this annual report, in the first months of 2026, we observed a general increase in softwood and hardwood pulp benchmark prices, as published by Fastmarkets RISI. During the remainder of 2026, developments could affect our pulp business, such as the effects of a weakening of the export market, paper demand deterioration and uncertainties associated with the current geopolitical environment. As of the date of this annual report, it is difficult to predict any further variation in pulp prices (See "Item 3. —Key Information—Risk Factors—Global economic and other developments, and particularly economic developments in the Asian, European and U.S. economies, could have an adverse effect on the demand for our products, our financial condition, results of operations and cash flows." for a more detailed discussion about this topic).

**Wood Products**

During the fourth quarter of 2025, demand of wood products was strong in some markets and weak in others, and had a general decrease in sales volume, and stable average prices. The North American markets had oversupply in most markets, amid uncertainty due to tariffs and a slow construction market.

Prices of our wood products remained generally stable during the first months of 2026. As of the date of this annual report, it is difficult to predict any future variation in market conditions or prices for our wood products. (See "Item 3. Key Information-Risk Factors-Global economic and other developments, and particularly economic developments in the Asian, European and U.S. economies, could have an adverse effect on the demand for our products, our financial condition, results of operations and cash flows." for a more detailed discussion about this topic).

**Item 6. Directors, Senior Management and Employees**

**DIRECTORS AND EXECUTIVE OFFICERS**

**Directors**

A Board of Directors manages our business. Our *estatutos* (by-laws) require that the Board of Directors consist of nine directors. None of our directors serves as an executive of the Company. Our entire board is elected every three years and can be re-elected for any number of periods. The current board was elected on

April 23, 2024

. The board may appoint replacements to fill any vacancies that occur during periods between elections; however, at the annual shareholders' meeting following any such replacement, an election of the entire board must take place. Scheduled meetings of the Board of Directors are generally held once a month. Extraordinary board meetings are called when summoned by the Chairman or when requested by at least two directors. We have not entered into any contracts with our current directors to provide any benefits upon the termination of their relationship with us. We do not have a compensation committee.

Our current directors are listed below.

---

| | | | |
|:---|:---|:---|:---|
| **Name**<br>| **Years <br>as <br>Director** | **Position** | **Age** |
| Matías Domeyko <br>| 2 | Chairman | 64 |
| Roberto <br>Angelini<br>| 38 | First <br>Vice-Chairman<br>| 77 |
| Jorge Andueza<br>| 31 | Second <br>Vice-Chairman<br>| 77 |
| Eduardo <br>Navarro<br>| 17 | Director | 60 |
| Timothy C. Purcell<br>| 20 | Director | 66 |
| Franco <br>Mellafe<br>| 10 | Director | 50 |
| Juan <br>Ignacio <br>Langlois<br>| 9 | Director | 57 |
| Jorge Bunster<br>| 24 | Director | 73 |
| Marcela Bravo<br>| 2 | Director | 65 |

---

Included below are brief biographical descriptions of each of our directors

*Matías Domeyko*

became a Director and Chairman of the Board of Directors on April 23, 2024.

He serves as Chairman of the Board of Directors of Forestal Arauco and Maderas Arauco S.A. and is a member of the Board of Directors of Inversiones Arauco Internacional Limitada.

With over 30 years at Arauco, he has held various leadership roles, including serving as Finance Manager from 1997 to 2005, General Manager from 2005 to 2011, and Executive Vice President from 2011 to 2024, contributing significantly to our global expansion. Mr. Domeyko holds a degree in commercial engineering from the University of Chile.

*Roberto Angelini* 

became a Director on April 30, 1986 and became First Vice-Chairman of the Board of Directors on May 4, 2007. He served as Vice-Chairman of the Board of Directors from April 18, 1991 to January 4, 2005, when he voluntarily resigned, and as Second Vice-Chairman of the Board of Directors from January 27, 2005 to May 4, 2007. He serves as Chairman of the Board of Directors of Empresas Copec, COPEC S.A., AntarChile S.A. ("AntarChile"), Corpesca S.A., Pesquera Iquique-Guanaye S.A., Inversiones Alxar S.A., Inversiones Angelini y Compañia Limitada ("Inversiones Angelini"), Inversiones Caleta Vitor S.A. and Servicios Corporativos Sercor S.A. He also serves as a member of the boards of directors of Forestal Arauco, Inversiones Arauco Internacional Limitada, Inversiones Nutravalor S.A., Nutrisco S.A., Cumbres Andinas S.A.C. and Inversiones Siemel S.A. Mr. Angelini holds a degree in civil engineering from the Catholic University of Chile.

*Jorge Andueza* 

became a Director on April 11, 1994 and was appointed Second Vice-Chairman of the Board of Directors on April 23, 2013. He is also the Chairman of the Board of Directors of Inversiones Siemel S.A., Inversiones Nutravalor S.A. and Nutrisco S.A., and serves as a member of the Board of Directors of COPEC S.A., Empresas Copec, Forestal Arauco, Inversiones Arauco Internacional Limitada, Corpesca S.A., Pesquera Iquique-Guanaye S.A., Organización Terpel S.A., Inversiones Caleta Vitor S.A. and Servicios Corporativos Sercor S.A. Mr. Andueza holds a degree in electronic civil engineering from Federico Santa María Technical University.

*Eduardo Navarro* 

became a Director on September 25, 2007. He is also the Chief Executive Officer of Empresas Copec S.A. and serves as Chairman of the Board of Directors of Abastible S.A.

and GASIB Sociedad Ibérica de Gas Licuado, S.L.U

and a member of the Board of Directors of COPEC S.A., Colgas S.A., Solgas S.A., Duragas S.A., Corpesca S.A., Inversiones Caleta Vitor S.A., Nutrisco S.A.,

Golden Omega S.A.,

Pesquera Iquique-Guanaye S.A.,

Inversiones Alxar S.A. and Cumbres Andinas S.A.C. Mr. Navarro holds degrees in commercial engineering and a master´s degree in economics, all from the Catholic University of Chile.

*Timothy C. Purcell* 

became a Director on April 26, 2005. He is also Managing Partner of Linzor Capital Partners, LP. Mr. Purcell currently serves as a member of the

Board of Directors of Engenium Capital S.A. de C.V., Inconcert Holding S.L and

Tierra Hotels.

He is also Chairman of the Board of Directors of

Eneña Chile and member of the Board of Directors of

Colegios Cree in Chile. Mr. Purcell received an undergraduate degree in economics from Cornell University, as well as a master's degree in international studies from the University of Pennsylvania and a master's degree in business from Wharton Business School.

*Franco Mellafe* 

became a Director on April 21, 2015. He has also served as member of the Board of Directors of Forestal Arauco and Inversiones Angelini since July 2013. Mr. Mellafe holds a master's degree in business administration from Babson College and an undergraduate degree in business administration from Gabriela Mistral University. Before joining our Board of Directors, Mr. Mellafe worked for twelve years in different positions in Arauco.

*Juan Ignacio Langlois* 

became a Director on April 26, 2016. He is also Partner of Tyndall Group. Mr. Langlois currently serves as a member of the Board of Directors of Metrogas S.A, Inversiones Soprole S.A. and Minera Las Cenizas S.A. Mr. Langlois received a law degree with maximum distinction from the Universidad de Chile School of law, a master's degree in business administration (MBA) from the Kenan-Flagler Business School, University of North Carolina at Chapel Hill and a master's degree in law (LLM) from the University of California, Berkeley.

*Jorge Bunster* 

served as a Director between April 1994 and March 2010, when he voluntarily resigned to assume the position of Vice Minister of Foreign Trade at the Ministry of Foreign Affairs of Chile, and subsequently, on April 2012, as Minister of Energy until March of 2014. He rejoined our Board of Directors in April 2017. Mr. Bunster serves as a member of the boards of directors of COPEC S.A., Organización Terpel S.A., and Nutrisco S.A. Mr. Bunster holds degrees in commercial engineering and economics from the Catholic University of Chile and a master's degree in business administration from IESE, Navarra University, Spain.

*Marcela Bravo*

became a Director on April 23, 2024. Mrs. Bravo serves as a member of the boards of directors of Isapre Consalud and Comunidad de Organizaciones Solidarias (COS). Mrs. Bravo holds a degree in commercial engineering from the University of Chile and is a graduate of the Advanced Management Program (AMP) from ESE Business School, the Board of Woman (BOW), and the program for Directors of ESE Business School.

**Executive Officers**

Our executive officers are appointed by our Board of Directors and hold office at its discretion. Our principal executive officers and the directors as of December 31, 2025, of each area or department are listed below.

---

| | | | |
|:---|:---|:---|:---|
| **Name**<br>| **Years withArauco** | **Position** | **Age** |
| Cristián Infante<br>| 28 | Chief <br>Executive <br>Officer<br>| 59 |
| Gianfranco <br>Truffello<br>| 30 | Chief <br>Financial <br>Officer<br>| 58 |
| Iván <br>Chamorro<br>| 23 | Senior Vice-President <br>of Forestry <br>& Woodpulp <br>Business<br>| 53 |
| Charles <br>Kimber<br>| 38 | Senior <br>Vice-President <br>of <br>Human <br>Resources <br>& <br>Sustainability<br>| 65 |
| Pablo <br>Franzini<br>| 20 | Senior <br>Vice-President <br>of <br>Wood Business<br>| 52 |
| Gonzalo <br>Zegers<br>| 16 | Senior <br>Vice-President <br>of <br>International <br>& <br>Business <br>Development<br>| 65 |
| Felipe <br>Guzmán<br>| 16 | General <br>Counsel<br>| 56 |

---

Included below are brief biographical descriptions of each of our executive officers and the directors of each area or department as of

the date of this annual report

.

*Cristián Infante* 

has been the Chief Executive Officer of Arauco since April 23, 2024. He joined Arauco in 1996 as a wood pulp sales representative, and in 1998 was appointed sales manager for industrial lumber and remanufactured products of Forestal Arauco. He then moved to Centromaderas S.A., where he worked until 2001. Mr. Infante later served as the Corporate Management & Development and Atlantic Region Managing Director. In July 2011, he was appointed as President and Chief Operating Officer of Arauco. Mr. Infante holds a degree in civil engineering from the Catholic University of Chile.

*Gianfranco Truffello* 

has been the Chief Financial Officer of Arauco since 2018. He joined Arauco in 1994 and was previously our Finance Manager. He also served as the Chief Financial Officer of Arauco Argentina. Mr. Truffello holds a degree in civil engineering from the Catholic University of Chile and a master's degree in business administration from the Massachusetts Institute of Technology.

*Iván Chamorro* 

is the Senior Vice-President of Forestry & Woodpulp Business of Arauco. He holds a degree in civil engineering and MBA from the Catholic University of Chile. Mr. Chamorro joined the Company in 2001, working in the commercial department and later, as its Manager of Public Affairs and Communications. Mr. Chamorro later served as the Senior Vice-President of Human Resources & EHS.

*Charles Kimber* 

is the Senior Vice-President of Human Resources & Sustainability of Arauco. He graduated from the Catholic University of Chile with a degree in commercial engineering and joined Arauco in 1986, where he has held several positions in sales. He was previously Managing Director of Arauco Wood Products Inc.

*Pablo Franzini* 

is the Senior Vice-President of Wood Business of Arauco. He holds a bachelor's degree in business economics from Torcuato Di Tella University, Argentina and has an MBA from Erasmus University, Netherlands. Mr. Franzini joined the Company in 2005. He served as President of Arauco North America, including operations in the United States, Canada, and Mexico. Throughout his career, he has worked as CFO of Arauco Argentina, CEO of Arauco Brazil, and SVP of Arauco International Business based in Chile.

*Gonzalo Zegers* 

is the Senior Vice-President of International & Business Development of Arauco. He joined Arauco in 2008. Before joining Arauco, he was the general manager of Agrofruta S.A. from 1991 to 1995, Chief Financial Officer (1995-1996) and Chief Executive Officer (1996-2005) of Masisa, and Chief Executive Officer of ATC Panels Inc. (USA) until 2008. Mr. Zegers holds a degree in commercial engineering from the Santiago University of Chile.

*Felipe Guzmán* 

is the General Counsel of Arauco. He joined Arauco in December 2008. Before joining Arauco, he worked at the law firm Portaluppi, Guzmán y Bezanilla (1996-2008), and he spent a year as an International Associate at Simpson Thacher & Bartlett in New York (2000-2001). Mr. Guzmán holds a law degree from Finis Terrae University, and a master´s degree in law (LLM) from Duke University.

**Compensation**

For 2025, the aggregate compensation of all our directors, executive officers and senior managers paid or accrued in that year for services in all capacities, including salaries and compensation for their service to those executive officers who serve as directors, was approximately U.S.$68

.3

million. We do not maintain any pension or retirement programs, or incentive compensation plans for our directors. Compensation for our executive officers, is comprised of a fixed monthly salary and a performance bonus paid on a yearly basis subject to our financial performance, the fulfillment of objectives and individual performance. We also do not maintain any plans providing for benefits upon termination of employment. The following table sets out the compensation of our directors for their services in 2025, as disclosed in our annual report submitted every year with the *Comisión para el Mercado Financiero* in Chile (the "Commission for the Financial Market").

---

| | | |
|:---|:---|:---|
| **Name**<br>| **2025** | **2025** |
| Matías Domeyko | U.S.$ | 662201 |
| Roberto Angelini |  | 333572 |
| Jorge Andueza |  | 392873 |
| Eduardo Navarro |  | 123545 |
| Timothy C. Purcell |  | 123545 |
| Franco Mellafe |  | 182847 |
| Juan Ignacio Langlois |  | 123545 |
| Jorge Bunster |  | 123545 |
| Marcela Bravo |  | 123545 |
| **Total Compensation** |  | 2189218 |

---

**Board Practices**

Our securities are not listed on any U.S. national securities exchange and, therefore, we are not subject to the rules relating to audit committees imposed by the Sarbanes-Oxley Act of 2002, as amended. Notwithstanding the foregoing, in 2013, we created an Audit Committee.

Our Audit Committee reviews on a quarterly basis the balance sheet and the financial statements prepared by management, prior to their submission by the Board of Directors to the Shareholders' Meeting held each April.

In addition, the Audit Committee is responsible for reviewing and analyzing the annual Internal Audit plans, which cover the Company and its domestic and foreign subsidiaries, and for monitoring the progress of such plans throughout the year.

The Audit Committee also reviews, analyzes, and monitors matters identified by the Internal Audit Department as High Risk, recommends improvements to internal controls, and reports on the impact and applicability of tax and accounting standards that may materially affect the Company.

Likewise, the Board of Directors meets semiannually with the external audit firm responsible for reviewing the financial statements, at which meetings the external audit plans are discussed and the reports issued by the external auditors are reviewed.

The Committee meets four times per year for the purpose of reviewing and approving the quarterly consolidated financial statements, transactions or operations with related parties, and matters related to Internal Audit.

At a meeting of the Board of Directors held on September 23, 2025, the Board approved a modification to the composition of the Committee, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Voting members **:** the Chairman of the Board, Mr. Matías Domeyko; Directors Mr. Jorge Andueza, Mr. Eduardo Navarro, and Mr. Timothy Purcell; and external advisor Mr. Robinson Tajmuch.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Non-voting members: the Chief Executive Officer, Mr. Cristián Infante.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Secretary **:** the General Counsel, Mr. Felipe Guzmán.

Such appointment was agreed for a term of three (3) years from the date of appointment.

At the end of each term, the Board of Directors designates the members for the succeeding period, which may consist of all or some of the same members as the preceding period.

In 2019, our Board of Directors created an Ethics and Compliance Committee. The members of such Ethics and Compliance Committee are Mr. Matías Domeyko (Chairman of the Board of Directors), Mr. Jorge Andueza (second Vice-Chairman of the Board of Directors), Ms. Marcela Bravo (Board Director), Mr. Cristián Infante (Chief Executive Officer), Mr. Felipe Guzmán (General Counsel) and Mr. Manuel Bezanilla (former Chairman of the Board of Directors). Mr. Camilo Naranjo (Chief Compliance Officer) is in charge of the proper functioning of the Ethics and Compliance Committee, and reports to the Board of Directors on a semi-annual basis. The Committee replaced the previously existing ethics committee and oversees the processes implemented by the Company in order to comply with the ethical standards and the regulations related to compliance. In addition, the Committee is informed of all reports received through the whistleblowing channel and reviews the investigation reports.

Sustainability Committee

During 2025, the Board of Directors appointed one of its members to serve on the Company's Sustainability Committee. Accordingly, at a meeting held on September 23, 2025, the Board of Directors formally approved the appointment of the Chairman of the Board, Mr. Matías Domeyko, as a member of the Sustainability Committee. Following such appointment, the Sustainability Committee was composed as follows: the Chairman of the Board, Mr. Matías Domeyko; the Chief Executive Officer, Mr. Cristián Infante; the Senior-Vice President of Forestry & Woodpulp Business and Pulp, Mr. Iván Chamorro; the Vice President of Wood Products Business, Mr. Pablo Franzini; the Senior-Vice President of International & Business Development, Mr. Gonzalo Zegers; the Chief Financial Officer, Mr. Gianfranco Truffello; the Senior Vice-President of Human Resources & Sustainability, Mr. Charles Kimber; and the General Counsel, Mr. Felipe Guzmán Rencoret.

The Sustainability Committee meets every four months and is responsible for defining and guiding the Company's corporate strategies with respect to environmental sustainability matters, encompassing initiatives such as Climate Action, Nature Positive, and Circular Bioeconomy.

**Employees**

The following table provides a breakdown of our employees by main category of activity as of the end of each year in the three-year period ended December 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Executives<br>| 420 | 402 | 391 |
| Professionals <br>and <br>Technicians<br>| 7651 | 7071 | 6990 |
| Workers<br>| 11029 | 11455 | 11255 |
| Total<br>| 19100 | 18928 | 18636 |

---

Approximately

% of our employees in Chile,

% of our employees in Argentina,

% of our employees in Uruguay,

% of our employees in Brazil,

% of our employees in Mexico and none of our employees in the United States or Canada were unionized as of December 31, 2025. We have negotiated collective bargaining agreements with unionized employees.

We believe we generally have satisfactory relations with our employees in Chile, Argentina, Brazil, Uruguay, Mexico, the United States and Canada.

*Chile*

In 2025, there were

collective bargaining processes in Chile. Of these,

occurred in our wood products business,

in our pulp business and

in our forestry business. One of those collective bargaining processes, related to

our pulp business

, resulted in a strike that lasted for

days. All the above-mentioned processes concluded with a 3-year agreement, which included semi-annual CPI adjustments, a negotiation termination bonus, and loans with more favorable conditions to our employees.

See "Item 3. Key Information—Risk Factors—

Labor action, contractual and other disputes could adversely affect our operations-."

In August 2023, due to a series of adverse circumstances that had affected the operation of our Licancel pulp mill in Chile, we suspended the pulp production at this mill indefinitely. The reasons for this measure included extreme weather variability, recurring river floods, periods of severe drought leading to repeated shutdowns, and high-impact forest fires that significantly reduced the availability of wood on an industrial scale, all compounded by the years of operation of the main equipment.

In July 2023, we indefinitely suspended operations of our Horcones II Sawmill in Chile due to supply issues, rising costs and decreased availability of raw materials (all of which affected the entire timber business in Chile). The mill was closed at the end of 2023.

In April 2024, we indefinitely suspended production of our El Colorado Sawmill in Chile due to operational issues, including supply chain disruptions, rising extra costs, and decreased availability of raw materials, all of which have compromised the plant's competitiveness. The mill was closed in the second quarter of 2024.

We renewed all the collective bargaining instruments that expired during 2024 in Chile. We cannot assure that a work slowdown, work stoppage or strike will not occur before or after the expiration of our labor agreements, and we cannot estimate the degree to which any work slowdown, work stoppage or strike may adversely affect our sales.

In addition, we depend to a significant extent on employees of contractors to which we outsource a wide range of services including management of certain of our plantations and transportation of raw materials and products.

In Chile, as of December 31, 2025, we had contracts with

635

contractors, who employed

17,366

employees.

*United States and Canada*

During the last ten years, we experienced no strikes or other material work stoppages at our U.S. and Canadian subsidiaries.

Our U.S. operations must comply with the regulations issued by the Occupational Safety & Health Administration (OSHA) and the Federal Labor Standards Act (FLSA), among others. Our Canadian operations must comply with the regulations of Worksafe New Brunswick and Ontario Ministry of Labor.

In the United States and Canada, as of December 31, 2025, we collaborated with 3,137 vendors that engaged with 8 external temporary staffing companies that supplied 8 temporary support employees and 38 permanent contractor personnel.

*Brazil*

Our Brazilian operations have not experienced any material work stoppages in the last eleven years, other than a generalized truck-drivers' strike in 2018 that affected our operations. As a consequence of this event, we could not receive raw materials or dispatch products, and our employees could not easily access our Brazilian mills during such time, which resulted in a stoppage of ten days. As a result, transportation costs increased 25% in average, which directly affected the cost of our final product, increasing them between 3% to 5% depending on the type of product.

In Brazil, as of December 31, 2025, we had contracts with

683

contractors, who in turn employed

5,865

employees.

Approximately

% of our employees in Brazil were unionized as of December 31, 2025. We negotiate collective agreements for one and two years. In accordance with Brazilian law, 100% of our employees are represented by the unions (including those who are not unionized).

*Argentina*

Our Argentine operations have not experienced any material work stoppages in the last six years.

Approximately

% of our employees in Argentina were unionized as of December 31, 2025. We have negotiated collective bargaining agreements with unionized employees.

In Argentina, as of December 31, 2025, we had contracts with

contractors, who employed

4,444

employees.

*Mexico*

Since 2019, we experienced no strikes or other material work stoppages affecting our Mexican operations. We have collective bargaining agreements with the unions representing the employees of our Durango and Zitácuaro mills, corresponding to our Mexican subsidiaries.

Union negotiations have

been

held and will be held with the unions of our Durango and Zitácuaro mills with effective date of January 1, 2025.

In Mexico, as of December 31, 2025, we had contracts with

contractors, who employed

1,153

employees.

*Uruguay*

During 2024 and 2025, our Uruguayan operations did not experience any material work stoppages. The Montes del Plata joint operation has a collective labor agreement with the pulp mill union employees (which was valid through 2024), as well as with the nursery union employees (which is valid through 2025).

In Uruguay, as of December 31, 2025, we had contracts with

contractors, who employed

3,126

employees.

As a result of the foregoing, we may be affected by future strikes, work slowdowns, stoppages or other labor-related developments in the various countries in which we operate, including such developments attributable to employees of contractors performing outsourced services, and such strikes, slowdowns, stoppages or other developments could have a material adverse effect on our business, financial condition, results of operations or prospects. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company—Labor action, contractual and other disputes could adversely affect our operations."

**Share Ownership**

Our First Vice-Chairman, Roberto Angelini Rossi, directly and indirectly owns approximately 36.0% of Inversiones Angelini, which is the principal shareholder of AntarChile. He directly owns approximately 0.2% of AntarChile. Through his direct and indirect interests in Inversiones Angelini, AntarChile and Empresas Copec, Mr. Angelini beneficially owns approximately 14.2% of our shares. Our Director Franco Mellafe Angelini owns indirectly approximately a 4.9% of Inversiones Angelini. He also directly owns 0.059% of AntarChile, and approximately 0.00006% of Empresas Copec. Through his direct and indirect interests in Inversiones Angelini, AntarChile and Empresas Copec, Mr. Mellafe beneficially owns approximately 2.025% of our shares.

None of our other directors or executive officers beneficially owns 1% or more of our shares.

**Item 7. Major Shareholders and Related Party Transactions**

**MAJOR SHAREHOLDERS**

Our only outstanding voting securities are shares of common stock of a single series, without nominal (par) value.

The following table sets forth certain information concerning ownership of our common stock, as of the date of this annual report, with respect to each shareholder known by us to own more than 5% of the outstanding shares of our common stock and all of our directors and executive officers, as a group.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Shares Owned** | **Number of Shares Owned** | **Percentage Ownership** | **Percentage Ownership** |
| Empresas Copec <br>|  | 131,893,675 |  | 99.99 |
| Directors and executive officers of our Company, as a group<br>|  | - |  | - |

---

Through its ownership of our Common Stock, Empresas Copec currently has voting control over us.

Empresas Copec is a Chilean public company listed on the Santiago Stock Exchange and the Chilean Electronic Stock Exchange. It is a holding company, the principal interests of which are in Arauco, gasoline distribution, electricity, gas distribution, fishing and mining. Before October 1, 2003, Empresas Copec's legal name was Compañía de Petróleos de Chile S.A. As of that date, Compañía de Petróleos de Chile S.A. transferred all its gasoline and fuel-related business assets to COPEC S.A., and changed its legal name to Empresas Copec S.A. As of December 31, 2025, AntarChile owned 60.82% of Empresas Copec.

Through its ownership in Empresas Copec, AntarChile beneficially owned approximately 60.82% of our shares as of December 31, 2025. As of the date of this annual report, AntarChile beneficially owned approximately 60.82% of our shares. Inversiones Angelini in turn owns approximately 63.72% of AntarChile's shares, and certain other related investors own approximately an additional 10.86% of AntarChile.

The principal equity owners of interest in Inversiones Angelini are Mr. Roberto Angelini Rossi directly and indirectly with approximately 36.0% and Mrs. Patricia Angelini Rossi directly and indirectly with approximately 29.0%.

As of December 31, 2025, and as of the date of this annual report, Inversiones Angelini controlled Arauco through the ownership structure described above.

**RELATED PARTY TRANSACTIONS**

We engage in a variety of transactions in the ordinary course of business with related parties. Related parties include, among others, our directors, officers and affiliates. The norms for transactions with related parties by and among public corporations and their subsidiaries are mainly regulated by Title XVI of law 18,046 *sobre Sociedades Anónimas* (the "Chilean Corporations Act"), and articles 44 and 89 of the Chilean Corporations Act. Title XVI of the Chilean Corporations Act requires that our transactions with related parties must be in our interest and must also be on market terms or on terms similar to those prevailing in the market. In addition, Title XVI provides that related party transactions must generally be approved by an informed majority of the disinterested members of the Board of Directors. If a majority of the disinterested directors abstains from voting on a particular transaction, the transaction must be approved by a unanimous vote of the non-abstaining disinterested directors or by two-thirds of the shares with voting rights. Resolutions approving any such transactions must be reported to our shareholders at the next annual shareholders' meeting.

Notwithstanding the above, in accordance with Article 147 of the Chilean Corporations Act, the following transactions with related parties do not need to follow the procedure set forth in the previous paragraph: (i) transactions which do not involve material amounts; (ii) transactions with subsidiaries in which we control 95% or more of the equity; and (iii) transactions that are performed in the ordinary course of our business in accordance with our general policy of customary dealings which was approved by our Board on August 27, 2024 and is available to shareholders at our main office and is published on our website, at <u>www.arauco.cl</u> or <u>www.arauco.com</u>.

Article 146 of the Chilean Corporations Act defines related party transactions as negotiations, acts, contracts or transactions between a corporation and any other person or entity that involve the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· directors or officers of the corporation (or their respective spouses and certain other relatives) acting on their own or on behalf of persons different from the corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· directors or officers of the corporation (or their respective spouses and certain other relatives) who have a direct or indirect ownership interest of at least 10% of the equity shares of the other company or are also directors or officers of such other company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· persons who have been in the last 18 months prior to the transaction, directors or officers of the corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "related persons" of the corporation, as defined in article 100 of the Chilean Law 18,045, or Chilean Securities Markets Law.

Article 100 of the Chilean Securities Markets Law establishes that the following are "related persons" to a company: (i) entities of the *grupo empresarial* (corporate group) to which such company belongs; (ii) entities that are either parent company, subsidiary, owners of at least 10% of the equity of a company or other companies in which the company owns at least 10%; (iii) directors or officers of the company (or their respective spouses and certain other relatives); (iv) any person who, individually or with other persons under a voting agreement can designate at least one member of the management of the company or control at least 10% of the capital of such company; and (v) any other person who is indicated as such by the Commission for the Financial Market, in accordance with certain parameters established by the above-mentioned Article 100.

Our main transactions with affiliates include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We purchase goods and services that may also be provided by other suppliers. Among the most significant are our fuel purchases from COPEC S.A., a subsidiary of Empresas Copec, our majority shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We hire port services from Compañía Puerto de Coronel S.A , in which we hold an indirect 50% stake ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We purchase chlorate sodium from EKA Chile, which is 50% owned by Arauco, and we provide EKA Chile with electricity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We obtain legal services from Portaluppi, Guzmán y Bezanilla, a law firm of which two brothers of our General Counsel, Felipe Guzmán , are partners.

Financial information concerning transactions with affiliates is included in Note 13 to our audited consolidated financial statements.

**Item 8. Financial Information**

See "Item 18. —Financial Statements."

**EXPORT SALES**

Export sales (i.e., sales in a different country from the one in which the goods are produced) constituted

64.7 % of our revenues for the year ended December 31, 2025. Our total export revenues for 2025 were U.S.$

3,936.7

million. Our principal overseas markets are North America, Asia and Europe. See "Item 4. Information on our Company—Description of Business—Domestic and Export Sales."

**LEGAL PROCEEDINGS**

From time to time, we have been subject to environmental proceedings related to allegations by the Chilean environmental regulators and private parties including proceedings related to the Valdivia mill, the Arauco mill, the Nueva Aldea complex, the Licancel mill and the Constitución mill. As a result of these proceedings, we have been subject to monetary fines as well as sanctions, including orders to suspend or limit our operations. We are also subject to certain other legal proceedings. For more information regarding the environmental proceedings and other legal proceedings see Note 18 to our audited consolidated financial statements.

On August 7, 2023, Chile enacted Law 21.595, which introduced significant modifications to the regime of corporate criminal liability in Chile. This new law significantly expands the catalogue of offenses that, under certain conditions, trigger criminal liability for individuals and legal entities and establishes new and stricter sentencing guidelines for the commission of these offenses.

We do not have knowledge of any fact that is likely to result in our criminal responsibility under such regulations.

**Environmental Proceedings**

We have been subject to certain legal proceedings. See "Item 3. Key Information—Risk Factors—Risks Relating to the Company. We have been subject to legal proceedings related to some of our mills which could adversely affect our business, financial condition, results of operations and cash flows."

In 2016 the Superintendence of the Environment initiated administrative proceedings against the Valdivia, Nueva Aldea, Licancel and Constitución mills. In 2017, the Superintendence of the Environment initiated an administrative proceeding against the Arauco mill. The first part of the proceeding against the Valdivia mill concluded in 2017. On December 15, 2017, the Superintendence of the Environment decided that the Valdivia mill was liable for ten out of eleven charges and imposed a fine of 7,777 UTA (approximately U.S.$6.5 million as of December 2018). We appealed this decision on April 5, 2018 before the Third Environmental Court. A decision by the Third Environmental Court was issued in February 2020. This decision partially accepted our appeal, only in connection with the inadequate classification of one of the charges, ordering the Superintendence to make a new classification. The decision also mentioned that the Superintendence had not proved that the death of the fish in the Cruces River in January 2014 was caused by the operations of the Valdivia mill. This ruling was appealed by both the Superintendence and by us before the Supreme Court. In December 2022, the Supreme Court upheld the Third Environmental Court decision, confirming most of the fines though stating that the death of fish in the Cruces River in January 2014 was not caused by the operations of the Valdivia mill, ruling that the Superintendence shall make a new classification in connection therewith. In January 2023, we paid the corresponding fines for approximately 5,360.2 UTA (approximately U.S.$4.9 million as of January 2023) In October 2024, the Superintendence of the Environment conducted a new classification of the pending charge, reducing the original fine by 70% (from 2,417 UTA to 705 UTA). However, the infraction was still classified as "serious" (*infracción grave*), with the Superintendence arguing that there was a continued breach of a key measure for managing spill risks. Shortly thereafter, we filed an appeal, requesting a more thorough consideration of the circumstances outlined by the regulations, particularly regarding the assessment of the "danger caused" and seeking a substantial reduction of the revised penalty. As of the date of this report, the Superintendence has yet to issue its final resolution.

**Tax Litigation in Mexico**

On December 12, 2022, the Tax Administration Service in Mexico issued tax credit assessment resolution number 900-04-04-00-00-00-2022-978 corresponding to the 2014 tax year. Under such assessment, objections against the following items were filed: (i) the deduction of interest in the amount of MXN $85,172,274 (U.S.$

4.8 million as of December 31, 2025), from loans granted by Masisa S.A. (Chile); (ii) the tax loss in the total amount of MXN$275,986,671 (U.S.$

15.4 million as of December 31, 2025); (iii) the deduction of payments made to Masisa S.A. for logistics services in the total amount of MXN$3,058,221 (U.S.$

0.2 million as of December 31, 2025); (iv) the alleged generation of non-distributed dividends related to the payments indicated in items (i) and (iii) above; (v) the rejection of contributions to the Single Contribution Account in amounts expressed in Mexican pesos of MXN$342,372,000 (U.S.$

19.1 million as of December 31, 2025), MXN$66,250,020 (U.S.$

3.7 million as of December 31, 2025), MXN$46,389,980 (U.S.$

2.6 million as of December 31, 2025) and MXN$11,457,000 (U.S.$

0.6 million as of December 31, 2025), respectively; and (vi) an alleged incorrect application of the double taxation avoidance treaty between Mexico and Chile in connection with payments described in (i) and (iii) above. The total amount of omitted tax, updates, surcharges, and fines assessed to us amounts to MXN$445,712,085 (U.S.$

24.9 million as of December 31, 2025).

On February 13, 2023, a motion to dismiss was filed against the above assessment, before the General Legal Administration of the Tax Administration Service. We submitted evidence, and is the case is now pending a ruling from the tax authorities. If the ruling is unfavorable, the Company may challenge it before the Federal Court of Administrative Justice.

We believe that our position is based on solid legal grounds, but no assurance can be given that we will prevail in this claim. As of December 31, 2025, we had not made any provision in connection with this contingency.

**DIVIDEND POLICY**

Article No. 79 of the Chilean Corporations Act states that, unless otherwise unanimously agreed by the shareholders, public corporations must distribute annually at least 30% of net income for the current year as cash dividend to shareholders determined in proportion to their shares or in the proportion established in the by-laws for preferred shares, if any, except where necessary to absorb accumulated losses from prior years. In April 2002, our shareholders approved the current dividend policy, setting the cash dividend at 40% of our consolidated net income for each year, which was determined under Chilean GAAP through the year ended December 31, 2008, and has been determined under IFRS since January 1, 2009. Under IFRS, the determination of the dividend amount is based on the effective realized profit net of any relevant variations in the value of unrealized assets and liabilities.

On October 28, 2019, our shareholders approved an amendment to article 36 of our bylaws, in order to establish that our shareholders will determine at our annual Ordinary Shareholders' Meeting, the dividend distribution amount for the respective year, without being subject to the 30% distributable minimum requirement.

Consistent with this amendment, on April 21, 2020, our shareholders voted to approve at the Board's proposal not to distribute dividends with respect to the results of year 2019

in order to address upcoming financial requirements, including those related to the MAPA project.

On September 28, 2021, our Board of Directors updated our dividend policy to provide for the distribution of 40% of distributable net income for fiscal year

2021 and subsequent fiscal years. The Board may also approve interim dividends, provided that positive financial results are expected and sufficient liquidity is available. On April 8, 2022, the Board amended the policy with respect to fiscal year 2021 to include

extraordinary profits from the sale of certain real estate by our subsidiary Forestal Arauco to Vista Hermosa Inversiones Forestales SpA in the calculation of distributable net income.

On September 24, 2024, our Board of Directors approved a modification to our dividend policy, which is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For the fiscal years 2024, 2025, and 2026, we will distribute annually an amount equivalent to 30% of our distributable net profit for each fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For subsequent fiscal years, the distribution will increase to 40% of our distributable net profit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Additionally, our Board of Directors reserved its right to approve interim dividends if a positive year-end result is anticipated and cash availability permits.

On October 24, 2025, our Board of Directors approved an amendment to our dividend policy, to incorporate an additional restriction on the payment and distribution of dividends. Pursuant to such amendment, in the event that we exercise our right to defer the payment of accrued interest under the Series "AG" bonds issued on October 24, 2025 pursuant to the bond line registered with the Commission for the Financial Market (Comisión para el Mercado Financiero) under No. 1237, with a maturity date of January 5, 2058, we must not declare or pay dividends to our shareholders for as long as any deferred interest remains outstanding and unpaid, in accordance with the terms and conditions set forth in the respective issuance documents.

The following table details the dividends paid by us to our shareholders for the previous five years:

---

| | | |
|:---|:---|:---|
| **Years**<br>| **Aggregate <br>Amount <br>of <br>Dividends**<br>**(U.S.$)** | **Distribution <br>Dates** |
| 2021 <br>(1)<br>| 663132403 | October <br>25, <br>2021 <br>– <br>November <br>5, <br>2021 <br>– <br>May <br>10, <br>2022<br>|
| 2022<br>| 463593359 | December <br>14, <br>2022 <br>– <br>May <br>10. <br>2023<br>|
| 2023 <br>(2)<br>| - | - |
| 2024<br>| 94397714 | December 10, 2024 |
| 2025 | 112287529 | May 7, 2025 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For 2021, the U.S.$663,132,403 million include U.S.$200 million paid as an extraordinary dividend (*dividendo eventual*) charged to the retained earnings fund (*fondo de utilidades acumuladas*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the fiscal year ending December 31, 2023, being that no net profit was obtained, our Board of Directors proposed to the shareholders meeting held on April 23, 2024 not to distribute dividends for 2023. Such proposal was reviewed and approved by the shareholders meeting.

Although our Board of Directors has no current plans to make further changes in our dividend policy, our dividend policy has been changed in the past, and no assurance can be given that it will not be changed again in the future, due to changes in Chilean law, capital requirements, operating results or other factors.

**SIGNIFICANT CHANGES**

Except as identified in this annual report, no other significant change has occurred since the date of the financial statements contained in this annual report. See "Item 5. Operating and Financial Review and Prospects—Trend Information."

**Item 9. The Offer and Listing**

Neither our stock nor our SEC-registered securities are listed on any stock exchange or other regulated market.

Trading in our securities takes place primarily in the over-the-counter market. Accordingly, we are unable to obtain reliable information on such trading.

**Item 10. Additional Information**

**ARTICLES OF INCORPORATION AND BY-LAWS**

*When we refer to the "Company," "Arauco" or "we," in this description of the articles of incorporation and by-laws, we mean Celulosa Arauco y Constitución S.A.*

**Organization and Registration**

We are a *sociedad anónima* (corporation) organized in Chile under the laws of Chile, subject to certain rules applicable to *sociedades anónima abiertas* (Chilean public corporations), which bylaws were approved on August 18, 1971, by resolution 300-S of the Chilean Securities Commission and recorded in the Santiago Commercial Register of 1971 on page 6433 under entry number 2994 and on page 6431 under entry number 2993. Notice was published in the Official Gazette on September 4, 1971.

**Objects and Purposes**

Our purpose, as stated in our *estatutos* (by-laws), includes the manufacture of forestry products, the management of forestry lands and other activities.

**Capital**

In 2002, our by-laws and the by-laws of several of our subsidiaries were amended in order to denominate our and their capital in U.S. dollars.

**Directors**

Pursuant to our by-laws, our Board of Directors is composed of nine members elected at a regular meeting of our shareholders. Our directors are not required to be shareholders. Our by-laws state that the amount of compensation to be received by the directors for their directorial services shall be fixed by the shareholders' meeting. Directors may be compensated for any non-directorial services rendered to us at levels of compensation comparable with compensation commonly paid for these services, compensation which is compatible with the directors' compensation fixed by the shareholders' meeting. The by-laws also state that our Board of Directors has all the authorities of administration and disposal that Chilean law or the by-laws do not confer upon the shareholders' meeting. The Board of Directors has the right to act on our behalf without the need for a special power of attorney, even in cases where a power of attorney is required by law. In particular, the by-laws provide that the Board of Directors is empowered to encumber our assets, real and personal property with mortgages, easements or pledges regardless of the value of such property or the amount of the respective encumbrances and to borrow money paying interest, with or without a guaranty for the loan.

Our by-laws provide that we may enter into acts or contracts in which one or more directors are interested only if the interested director's interest is made known to the board, the acts or contracts are approved by the board and the terms of the act or contract conform to those prevailing in the market. In addition, board resolutions approving interested director transactions must be reported by the chair of the meeting at the first shareholders' meeting following the approval of the interested director transaction. See "Item 7. Major Shareholders and Related Party Transactions" for further information and applicable rules on related party transactions.

See "Item 6. Directors, Senior Management and Employees" for further information about our Board of Directors.

**Shareholders**

Our share capital consists of common stock shares of a single series, without nominal (par) value issued in registered form. Record holders of shares are registered in our share register. Any transfer of shares must be noted in our share register.

**Voting Rights**

Each share of our stock entitles the holder to one vote at any meeting of shareholders. Resolutions may be taken upon a vote of an absolute majority of the voting shares present or represented. Any resolution relating to amendments to our by-laws must be approved by an absolute majority of the voting shares issued. Resolutions with regard to the following matters, among others, require the affirmative vote of two-thirds of the voting shares issued:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· transformation, division or merger with another company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· advanced dissolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· change of corporate domicile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· reduction in our equity capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· approval and appraisal of non-cash capital contributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· reduction in the number of members of the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the disposal of 50% or more of our assets, whether or not such disposal also includes any of our liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the disposal of 50% or more of the assets of one our subsidiaries, provided that such subsidiary represents at least 20% of our assets; and any disposal of shares by our Company that causes us to lose control of a subsidiary that represents at least 20% of our assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes to the way in which corporate benefits will be distributed.

According to our by-laws, holders of our shares also have the right to vote at the regular shareholders' meeting for the election of directors. Shareholders or their representatives may accumulate their votes in favor of one candidate or distribute them among various candidates. A vote on the election of directors may be omitted if an election is proposed by acclamation and none of the shareholders present or represented opposes the motion. The Board of Directors may also be dismissed by a regular or special shareholders' meeting, though the shareholders may only vote to dismiss the board as a whole.

**Changes to Shareholders' Rights**

To change the rights of holders of our shares or create a new series of our shares, we must amend our by-laws. Any reduction of the rights of our shares requires a two- thirds majority vote of all holders of our shares under Chilean law. Any changes to the way in which corporate benefits are distributed must be approved by a two-thirds majority of all holders of the corporation's shares.

**Shareholders' Meetings**

Our by-laws provide that the Board of Directors shall call shareholders' meetings. Notice of shareholders' meetings must be made by a prominent notice published at least three times, on different days, in the newspaper of one of our corporate domiciles, as determined by a shareholders' meeting, or in the absence of a determination, in the Official Gazette.

A shareholder must be registered in our share register as of the meeting date to be entitled to participate and vote at any shareholders' meeting. In addition, other persons may represent shareholders at meetings. Powers of attorney must be given in writing and must be granted with respect to all of the shares the shareholder is entitled to vote as of the date of the shareholders' meeting.

Shareholders' meetings may be regular or special meetings. Regular shareholders' meetings are held once a year within the first four months of the year. Among other things, the regular shareholders' meeting appoints independent external auditors to examine our accounts, inventory, balance sheet and other financial results. The by-laws provide that the following matters are to be considered at regular shareholders' meetings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the review of our results of operations and external auditors' reports and the approval or rejection of our annual report, our balance sheet and financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the distribution of profits of each financial period and the distribution of our dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the election or dismissal of the members of the Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any matter of corporate interest that is not considered transacted at a special shareholders' meeting pursuant to the Chilean law.

Special shareholders' meetings may be held at any time required by corporate needs to consider any matter that the law or our by-laws require to be considered at a shareholders' meeting. Our by-laws require the meeting notice to disclose any matters to be discussed at a special shareholders' meeting. According to the by-laws and the Chilean Corporations Act, the following matters must be considered at special shareholders' meetings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· dissolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· transformation, merger or division and the amendment of our by- laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the issue of bonds or debentures convertible into shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the disposal of 50% or more of our assets, whether or not such disposal also includes any of our liabilities, and the formulation or modification of any business plan that contemplates the disposal of assets for an amount higher than such percentage; the disposal of 50% or more of the assets of one of our subsidiaries, provided that such subsidiary represents at least 20% of our assets; and any disposal of shares by the Company that causes us to lose control of a subsidiary that represents at least 20% of our assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the grant of real or personal guarantees to secure obligations of third parties, unless they are subsidiaries, in which case the approval of the Board of Directors will be sufficient.

Any other matters within the competence of regular shareholders' meetings may be considered at special shareholders' meetings.

Any act of a shareholders' meeting relating to our dissolution, transformation, merger or division, the amendment of our by-laws, any disposal of 50% or more of our assets or the issue of bonds convertible into shares or convertible debentures must be held before a notary public, who must certify that the minutes of such meeting are the true expression of what occurred and was resolved at such meeting.

**Allocation of Net Income and Distribution of Dividends**

Our by-laws provide that the shareholders at a regular shareholders' meeting shall determine the annual distribution of our net profits for each financial period, within the limitations prescribed by law. The shareholders shall also set the date on which any distribution shall be paid, within the time limits prescribed by law. Chilean law prescribes that distributions shall be paid within 30 days of the regular shareholders' meeting at which such distribution was determined.

On October 28, 2019, our shareholders approved at an extraordinary shareholders' meeting an amendment to article 36 of our bylaws, in order to establish that the Ordinary Shareholders' Meeting will determine on an annual basis, the dividend distribution amount for the respective period, without being subject to the 30% distributable minimum indicated in the Chilean Corporations Act. See "Item 8. Financial information-Dividend Policy" for more information.

In accordance with Chilean law, in the event of liquidation, capital can be distributed to the shareholders only after the rights of the creditors have been secured or debts owed to creditors have been paid. Our by-laws provide that a shareholders' meeting will appoint one or more liquidators to carry out the liquidation and to call shareholders' meetings, as required under Chilean law.

**Regulation of and Restrictions on Foreign Investors**

There are no limitations on the rights to hold securities, including rights of non-resident or foreign shareholders to hold or exercise voting rights on securities.

**Disclosure of Shareholder Ownership**

We register certain information about our shareholders in our shareholder registry. We are required to disclose this information to the Commission for the Financial Market on a quarterly basis.

**Rights of Shareholders**

Our by-laws provide that, in the case of a dispute between shareholders or between shareholders and management, the parties will submit their dispute to an arbitrator, who may determine the procedural rules to be used in the arbitration but must issue a final judgment in accordance with Chilean law. Subject to limited exceptions, the arbitrator's judgment shall not be subject to appeal. The parties shall appoint the arbitrator by mutual agreement and if no agreement is reached, an arbitrator will be appointed by the civil court system from among present and former associate justices of the Supreme Court of Justice of Chile.

**MATERIAL CONTRACTS**

Not applicable.

**EXCHANGE CONTROLS**

The Central Bank is responsible for, among other things, monetary policies and exchange controls in Chile. Prior to 1989, Chilean law permitted the purchase and sale of foreign currency only in cases explicitly authorized by the Central Bank. Law No. 18,840, the *Ley Orgánica Constitucional del Banco Central de Chile* ("Organic Law of the Central Bank of Chile" or the "Central Bank Act"), enacted in 1989, liberalized the rules that govern the ability to buy and sell foreign currency.

The Central Bank Act empowers the Central Bank to determine which types of foreign exchange operations must be carried out in the Formal Exchange Market rather than the *Mercado Cambiario Informal* (Informal Exchange Market). The Central Bank has ruled that certain foreign exchange transactions, including those attendant to foreign investments and bond issuances, may be effected only in the Formal Exchange Market. The Central Bank may also impose restrictions on foreign exchange operations that are conducted or are required to be conducted in the Formal Exchange Market. These restrictions may include the requirement of prior authorization from the Central Bank, the imposition of reserve requirements and the limitation of foreign exchange operations that may be conducted by the entities that participate in the Formal Exchange Market.

The Formal Exchange Market consists of banks and other entities authorized by the Central Bank to participate in such Formal Exchange Market.

On April 16, 2001, the Central Bank agreed that, effective April 19, 2001, the prior foreign exchange restrictions were eliminated and a *Compendio de Normas de Cambios Internacionales* (Compendium of Foreign Exchange Regulations, or the "Compendium") were applied.

The main objective of this change was to facilitate capital movements from and into Chile and to encourage foreign investment.

Effective as of January 1, 2026, the Central Bank approved a new Compendio de Normas de Cambios

Internacionales (the "New CNCI"), which replaced in its entirety the former Compendium and repealed all of its prior chapters and manuals.

**International Issue of Bonds under the Compendium**

In accordance with the regulations issued by the Central Bank included in the Chapter XIV of the Compendium, any international issue of bonds in an aggregate amount exceeding U.S.$1,000,000 must be registered and dated by the Central Bank or by a bank or other entity authorized by the Central Bank to participate in the Formal Exchange Market before the proceeds from the issuance can be remitted to Chile and received by the issuer or simultaneously with the remittance into Chile of such proceeds. The issuer must submit forms regarding the offering to the registering entity or directly to the Central Bank, along with a letter of instructions indicating whether it prefers to receive the proceeds in Chilean pesos or in a foreign currency. If presented through a Formal Exchange Market entity, such entity must, in turn, verify that the forms submitted by the issuer are in accordance with the documentation relating to the issue and inform the Central Bank of the operation no later than 11:00 a.m. on the banking business day following the date on which the proceeds of the issue are transferred to the issuer.

If the issuer opts to receive the proceeds of the issue outside of Chile, it must report this to the Central Bank directly or through a Formal Exchange Market entity during the first ten calendar days of the month following the one in which the proceeds were received.

Chapter XIV of the Compendium also stated that proceeds from the issue, as well as payment of capital and interest relating to the issue, must be received and sent from and through the Formal Exchange Market, but purchases of U.S. dollars in connection with payments on debt securities issued directly by us can be made either in the Formal or in the Informal Exchange Market. There can be no assurance, however, that we will be able to purchase U.S. dollars in the Informal Exchange Market or in the Formal Exchange Market at the time or in the amounts required to pay debt service related to any such debt securities, since the registration of the debt securities with the Central Bank does not grant us access to the Formal Exchange Market for the purchase of U.S. dollars necessary to make payments in respect of those securities. There can also be no assurance that further Central Bank regulations or legislative changes to the current foreign exchange control regime in Chile would not restrict or prevent our purchase of U.S. dollars to make payments under our securities.

We are also required to inform the Central Bank from time to time material changes on the information that has been previously filed.

The regulations of Chapter XIV of the Compendium do not make any reference to the one-year mandatory deposit in the Central Bank that was previously required by Chapter XIV. However, the Central Bank is authorized, under the Central Bank Act, to impose such a requirement.

There can be no assurance that we will be able to purchase U.S. dollars in the Informal Exchange Market or in the Formal Exchange Market at the time or in the amounts required to pay debt service related to any such debt securities. There can also be no assurance that further Central Bank regulations or legislative changes to the current foreign exchange control regime in Chile and will not restrict or prevent our purchase of U.S. dollars to make payments under our securities from Chile.

**International Issue of Bonds under the New CNCI**

Under the New CNCI, international issuances of bonds are treated as external liabilities of Chilean residents and are governed by the provisions set forth in Section IV, Letter B, numeral II of Chapter II of the Compendium, entitled Sistema de Información de Operaciones de Cambios Internacionales, together with its related Operational Regulation II.7, which replaced the former Chapter XIV regime. According to the new regulation, any external debt operation, including an international issuance of bonds, for an aggregate amount equal to or exceeding U.S.$1,000,000 must be reported to the Central Bank, regardless of whether the proceeds are remitted to Chile or retained or used abroad, substantially in the same timeframes as those previously applicable under the former Chapter XIV of the Compendium. Payments of principal, interest and other amounts related to such indebtedness, as well as material modifications to its terms, must also be reported in accordance with the applicable regulations. Payments of principal, interest and other amounts related to external indebtedness remitted from Chile must be effected through the Formal Exchange Market, while payments made directly abroad with funds held outside Chile must be reported directly to the Central Bank. Issuers with an aggregate outstanding external debt balance equal to or exceeding U.S.$10,000,000 are subject to periodic reporting of such balances.

The New CNCI does not require prior authorization from the Central Bank for international bond issuances, nor does it impose mandatory reserve requirements, forced repatriation of proceeds or mandatory conversion of foreign currency into Chilean pesos. Instead, the New CNCI consolidates and modernizes the reporting and information regime applicable to foreign exchange operations, including those related to external indebtedness and international issuances of debt securities.

**TAXATION**

**General**

The following summary contains a description of certain Chilean and United States federal income tax consequences of the purchase, ownership and disposition of our securities, but it does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision to purchase our securities. This summary does not describe any tax consequences arising under the laws of any state, locality or taxing jurisdiction other than the United States and Chile.

This summary is based on the tax laws of Chile and the United States as in effect on the date of this Form 20-F, as well as regulations, rulings and decisions of Chile and the United States available on or before such date and now in effect. All of the foregoing is subject to change, and any changes could apply retroactively and could affect the continued validity of this summary.

Prospective purchasers of our securities should consult their own tax advisors as to the Chilean, United States or other tax consequences of the purchase, ownership and disposition of our securities, including, in particular, the application to their particular situations of the tax considerations discussed below, as well as the application of state, local, foreign or other tax laws.

On December 19, 2023, the income tax treaty between Chile and the United States (the "Treaty") entered into force. The provisions of the Treaty became fully effective on February 1, 2024.

**Chilean Taxation**

The following is a general summary of the principal consequences under Chilean tax law, as currently in effect, of an investment in our securities made by a foreign holder. Foreign holder means either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· in the case of an individual, a person who is neither a resident nor is domiciled in Chile. For purposes of Chilean taxation, (a) an individual is resident in Chile if he or she remains in Chile, uninterruptedly or not, for a period or periods exceeding 183 days in total, within any period of twelve months; (b) an individual is domiciled in Chile if such individual resides in Chile with the intention of remaining in Chile (the intention will be determined according to the circumstances); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· in the case of a legal entity, a legal entity that is not organized under the laws of Chile, unless our securities are held by a branch or a permanent establishment of such entity in Chile.

Under Chilean income tax law, payments of interest made from Chile in respect to our securities to a foreign holder will generally be subject to a Chilean interest withholding tax currently assessed at a rate of 4.0% (the "Chilean Interest Withholding Tax"), only to the extent the requirements for applying such rate are complied with. The Company is required by Chilean income tax law to withhold, declare and pay the Chilean Interest Withholding Tax.

Subject to specific exceptions and limitations, we have agreed to pay additional amounts to the foreign holders of our notes in respect of the Chilean Interest Withholding Tax. This ensures that the interest received by the foreign holder, net of Chilean Interest Withholding Tax, is equal to the amount they would have received had no withholding tax been applied. If we pay additional amounts in respect of the Chilean Interest Withholding Tax, any tax refunds in respect of these amounts will be for our benefit. In the event that certain changes in Chilean tax laws require us to pay additional amounts in respect of the Chilean Interest Withholding Tax at a rate in excess of 4.0%, we have the right to redeem our securities.

Under existing Chilean laws and regulations, a foreign holder will not be subject to any Chilean taxes in respect of payments of principal made by the Company with respect to our securities.

The Chilean Income Tax Law provides that a foreign holder is subject to income tax on its Chilean-source income. Chilean-source income includes earnings from activities conducted in Chile, as well as from the sale, disposition or other transactions involving assets or goods located in Chile. According to Article 11 of such law, securities whether private or public will only be considered Chilean-source if they are issued in Chile by taxpayers domiciled or residing in the country. Since our securities covered in this report are not issued in Chile, any capital gains realized by a foreign holder from the sale or disposition of these securities will generally not be subject to Chilean income tax. However, any premium paid by the Company on the redemption or purchase of these securities may be treated as interest, and therefore subject to Chilean Interest Withholding Tax, as outlined above. In such cases, foreign holders may be entitled to additional amounts.

Any payment made by the Company (other than interest or principal on the securities, or as otherwise specifically exempted by Chilean law) may be subject to withholding tax of up to 35%. However, lower withholding tax rates may apply under the Treaty, as defined above. The Treaty provides a broad definition of interest, which includes premiums attached to securities. Additionally, value-added tax (VAT) may apply to fees and commissions paid to non-domiciled or non-resident entities in connection with the issuance, purchase, ownership, or disposition of the securities.

A foreign holder will not be liable for estate, gift, inheritance or similar taxes with respect to its holdings unless the securities held by a foreign holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· are located in Chile at the time of such foreign holder's death or at the time the transfer takes place, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· were purchased or acquired with monies obtained from Chilean sources.

A foreign holder will not be liable for Chilean stamp, registration or similar taxes.

The issue of our securities directly by us was subject to the Chilean stamp tax, which we paid.

**United States Taxation**

This summary of certain United States federal income tax considerations deals principally with United States Holders (defined below) that hold our securities as capital assets and whose functional currency is the United States dollar. It does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a particular investor, and generally does not address the tax treatment of United States Holders that may be subject to special tax rules, such as banks, financial institutions, tax-exempt entities, regulated investment companies, real estate investment trusts, insurance companies, partnerships and partners therein, dealers in securities or currencies, traders in securities electing to mark to market, certain short-term holders of our securities, persons that will hold our securities as a position in a "straddle" or conversion transaction, or as part of a "synthetic security" or other integrated financial transaction, or nonresident alien individuals present in the United States for more than 182 days in a taxable year. United States Holders should be aware that the U.S. federal income tax consequences of holding our securities may be materially different for investors described in the previous sentence, including as a result of certain laws applicable to investors with short holding periods on hedging transactions. This summary addresses only U.S. federal income tax consequences and does not address consequences arising under state, local, or foreign tax laws, U.S. federal estate or gift tax laws, any alternative minimum tax, the Medicare tax on net investment income, or special timing rules prescribed under section 451 (b) of the U.S. Internal Revenue Code of 1986, as amended.

As used under this section "United States Taxation," the term "United States Holder" means a beneficial owner of a security that is a citizen or resident of the United States or a United States domestic corporation or that otherwise is subject to United States federal income taxation on a net income basis in respect of our securities.

**Taxation of Interest and Additional Amounts**

A United States Holder will treat the gross amount of interest and additional amounts (*i.e.,* without reduction for Chilean withholding tax at the appropriate rate applicable to the United States Holder) as ordinary interest income in respect of our securities at the time that such payments are accrued or are actually or constructively received, in accordance with the United States Holder's method of tax accounting.

Subject to generally applicable limitations and conditions, Chilean withholding tax paid at the appropriate rate applicable to the United States Holder may be eligible for credit against such United States Holder's U.S. federal income tax liability. These generally applicable limitations and conditions include requirements adopted by the Internal Revenue Service ("IRS") in regulations promulgated in December 2021, and any Chilean tax will need to satisfy these requirements in order to be eligible to be a creditable tax for a United States Holder. In the case of a United States Holder that either (i) is eligible for, and properly elects, the benefits of the Treaty, or (ii) consistently elects to apply a modified version of these rules under temporary guidance and complies with specific requirements set forth in such guidance, the Chilean tax on interest generally will be treated as meeting these requirements and therefore as a creditable tax. In the case of all other United States Holders, the application of these requirements to the Chilean tax on interest is uncertain and we have not determined whether these requirements have been met. If the Chilean tax is not a creditable tax for the United States Holder or the United States Holder does not elect to claim a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year, the United States Holder may be able to deduct the Chilean tax in computing such United States Holder's taxable income for U.S. federal income tax purposes. Interest and additional amounts will constitute income from sources without the United States and, for United States Holders that elect to claim foreign tax credits, generally will constitute "passive category income" for foreign tax credit purposes. Foreign tax credits will not be allowed for withholding taxes imposed in respect of certain short-term or hedged positions in securities and may not be allowed for withholding taxes imposed in respect of arrangements in which a United States Holder's expected economic profit is insubstantial.

The availability and calculation of foreign tax credits and deductions for foreign taxes depend on a United States Holder's particular circumstances and involve the application of complex rules to those circumstances. The temporary guidance discussed above also indicates that the Treasury and the IRS are considering proposing amendments to the December 2021 regulations and that the temporary guidance can be relied upon until additional guidance is issued that withdraws or modifies the temporary guidance. United States Holders should consult their own tax advisors regarding the application of these rules to their particular situations.

**Taxation of Dispositions**

A United States Holder will generally recognize gain or loss on the sale, exchange or other disposition of a security in an amount equal to the difference between the amount realized on the sale, exchange or other disposition (less any accrued interest, which will be taxable as such) and the United States Holder's tax basis in the security. A United States Holder's tax basis in a security will generally equal its cost, increased by any amounts includible in income by the holder as market discount and reduced by any amortized premium (each as defined below). Subject to the discussion on market discount below, gain or loss realized by a United States Holder on the sale, redemption or other disposition of our securities generally will be treated as U.S. source capital gain or loss and such gain or loss will be long-term capital gain or loss if at the time of the disposition, the security has been held for more than one year. The net amount of long-term capital gain recognized by a United States Holder that is an individual is generally taxed at a reduced rate. The deduction of capital losses is subject to limitations.

**Premium and Market Discount**

A United States Holder that purchases a security at a cost greater than its stated principal amount will be considered to have purchased the security at a premium, and may elect to amortize the premium (as an offset to interest income), using a constant-yield method, over the remaining term of the security (such premium, "amortized premium"). Such election, once made, generally applies to all bonds held or subsequently acquired by the United States Holder in or after the first taxable year to which the election applies and may not be revoked without the consent of the IRS. A United States Holder that elects to amortize the premium must reduce its tax basis in a security by the amount of the premium amortized during its holding period. With respect to a United States Holder that does not elect to amortize bond premium, the amount of bond premium will be included in the United States Holder's tax basis when the security matures or is disposed of by the United States Holder. Therefore, a United States Holder that does not elect to amortize such premium and that holds the security to maturity generally will be required to treat the premium as capital loss when the security matures.

If a United States Holder of a security purchases the security at a price that is lower than its stated principal amount by at least 0.25% of its stated principal amount multiplied by the number of remaining whole years to maturity, the security will be considered to have "market discount" in the hands of such United States Holder. In such case, gain realized by the United States Holder on the disposition of the security generally will be treated as ordinary income to the extent of the market discount that accrued on the security while held by the United States Holder. In addition, the United States Holder could be required to defer the deduction of a portion of the interest paid on any indebtedness incurred or maintained to purchase or carry the security. In general terms, market discount on a security will be treated as accruing ratably over the term of the security, or, at the election of the holder, under a constant-yield method. A United States Holder may elect to include market discount in income on a current basis as it accrues (on either a ratable or constant-yield basis), in lieu of treating a portion of any gain realized on a sale of a security as ordinary income. If a United States Holder elects to include market discount on a current basis, the interest deduction deferral rule described above will not apply. Any such election, if made, applies to all market discount bonds acquired by the United States Holder on or after the first day of the first taxable year to which such election applies and is revocable only with the consent of the IRS.

**Specified Foreign Financial Assets**

Individual United States Holders that own "specified foreign financial assets" with an aggregate value in excess of U.S.$50,000 on the last day of the taxable year or U.S.$75,000 at any time during the taxable year are generally required to file an information statement along with their tax returns, currently on IRS Form 8938, with respect to such assets. "Specified foreign financial assets" include any financial accounts held at a non-U.S. financial institution, as well as securities issued by a non-U.S. issuer (which would include our securities) that are not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain individuals living abroad and to certain married individuals. Regulations extend this reporting requirement to certain entities that are treated as formed or availed of to hold direct or indirect interests in specified foreign financial assets based on certain objective criteria. United States Holders who fail to report the required information could be subject to substantial penalties. In addition, the statute of limitations for assessment of tax would be suspended, in whole or part. Holders should consult their own tax advisors concerning the application of these rules to their investment in the securities, including the application of the rules to their particular circumstances.

**Backup Withholding and Information Reporting**

Information returns will be filed with the IRS in connection with payments on our securities made to and the proceeds of any disposition of our securities effected by certain United States Holders. In addition, certain United States Holders may be subject to a U.S. backup withholding tax in respect of such amounts if they do not provide their taxpayer identification numbers to the payor or otherwise establish an exemption. A beneficial owner of our securities that is a nonresident individual or a foreign corporation, estate, or trust generally is exempt from these withholding and reporting requirements, but may be required to comply with applicable certification and identification procedures to establish their eligibility for such an exemption. The amount of any backup withholding from a payment to a holder will be allowed as a credit against the holder's U.S. federal income tax liability and may entitle the holder to a refund, provided that the required information is timely furnished to the IRS.

**DOCUMENTS ON DISPLAY**

We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended. In accordance with these requirements, we file reports and other information with the SEC. These materials, including this Annual Report and the exhibits thereto, may be inspected and copied at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of the materials may be obtained from the Public Reference Room at the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates. In addition, the SEC maintains an Internet website at http://www.sec.gov, from which these materials may be electronically accessed. The public may obtain information on the operation of the SEC Public Reference Room by calling the SEC in the United States at 1-800-SEC-0330.

**Item 11. Quantitative and Qualitative Disclosures About Market Risk**

The following discussion about our risk management activities includes forward-looking statements that involve risk and uncertainties. Actual results could differ materially from those projected in such forward-looking statements.

We are exposed to market risk from changes in interest rates, currency exchange rates and prices of commodities. Our Board of Directors approves our policies that address these risks. From time to time, we assess our exposure and monitor opportunities to manage these risks, including entering into derivative contracts. For information on the currency, interest rate swaps and commodity derivatives into which we entered with respect to a portion of our borrowings, see "Item 5. Operating and Financial Review and Prospects—Hedging" and Note 23 to our audited consolidated financial statements. In the normal course of business, we also face risks that are either non-financial or non- quantifiable. Such risks principally include country risk, credit risk and legal risk and are not represented in the tables below.

**Interest Rate Risk**

Interest rate risk exists principally with respect to our indebtedness that bears interest at floating rates. As of December 31, 2025, we had outstanding U.S.$

8.6 billion of indebtedness, including accrued interest and discounts and costs of issuance, of which

93.5 % bore interest at fixed interest rates and

6.5 % bore interest at floating rates of interest. The fixed and floating rates and the aforementioned percentages reflect the effect of swap agreements.

50.3 % of our indebtedness was denominated in U.S. dollars as of that date. The interest rate on our variable rate debt is determined principally by reference to SOFR.

The following table summarizes our debt obligations, as of December 31, 2025. These obligations are sensitive to changes in interest rates. The table presents the aggregate principal amount of each category of indebtedness maturing in each year, at the weighted average interest rate for each category of indebtedness. Average interest rates for liabilities are calculated based on the prevailing interest rate for each loan as of December 31, 2025.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Average<br>Interest<br>Rate** | **2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** | **Total<br>Debt** | **Fair<br>Value** |
|  |  |  |  | (U.S.$ in millions)  |  |  |  |  |  |
| **Interest**<br>|  |  |  |  |  |  |  |  |  |
| **Bearing Debt**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Fixed Rate**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(U.S.$-denominated)<br>| 4.83%<br>| 175.4 | 516.6 | 15.4 | 618.7 | 624.1 | 2002.3 | 3952.5 | 3805.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(UF/CLP$-denominated)<br>| 3.33%<br>| 308.3 | 62.6 | 202.3 | 70.8 | 35.8 | 2295.1 | 2975.1 | 2865.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(R$-denominated)<br>| 0.12%<br>| 16.1 | 15.1 | 17.0 | 18.6 | 24.7 | 702.6 | 794.2 | 794.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(CAD-denominated)<br>| 0.00%<br>| 0.3 | 0.2 | 0.0 | - | - | - | 0.6 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(MXN-denominated)<br>| 5.22%<br>| 0.4 | 0.4 | 0.1 | 0.0 | - | - | 1.0 | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(EUR-denominated)<br>| 1.11%<br>| 77.0 | 70.5 | 73.6 | 73.6 | - | - | 294.8 | 305.4 |
| **Floating Rate**<br>|  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;(U.S.$-denominated) SOFR+<br>| 1.24%<br>| 6.0 | 209.5 | - | - | - | 147.2 | 362.8 | 493.9 |
| &nbsp;&nbsp;&nbsp;(R$-denominated) CDI +<br>| 1.42%<br>| 109.1 | 33.5 | 27.5 | 22.8 | - | - | 192.9 | 192.9 |
| **Total**<br>|  | 692.8 | 908.6 | 335.9 | 804.7 | 684.7 | 5147.2 | 8573.8 | 8459.3 |

---

**Foreign Currency Risk**

Our principal exchange rate risk involves changes in the value of the Chilean peso and, to a lesser extent, the Brazilian real, the Argentine peso and the Euro relative to the U.S. dollar. We estimate that a majority of our consolidated costs and expenses are denominated in U.S. dollars. As of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 60.6 % of our accounts receivable were denominated in U.S. dollars, 15.7 % in Chilean pesos and 19.7 % in other currencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 60.9 % of our cash and short-term investments were denominated in U.S. dollars, 18.6 % in Chilean pesos, 8.4 % in Brazilian reais and 12.5 % in other currencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 50.3 % of our debt was denominated in U.S. dollars before swaps; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a significant portion of our consolidated total assets was denominated in U.S. dollars.

Most of our foreign currency-denominated revenues, receivables and indebtedness are denominated in U.S. dollars and the majority of our costs and expenses are denominated in U.S. dollars. As of December 31, 2025, we were party to cross currency swap agreements in Chile to hedge our local bonds in UF and to hedge a bank loan in EUR, and forward agreements to swap local currencies to U.S. dollars. See "Item 5. Operating and Financial Review and Prospects—Hedging" and Note 23 to our audited consolidated financial statements included elsewhere in this annual report. Accordingly, variations in the value of the Chilean peso relative to the U.S. dollar will not have a significant effect on the cost in U.S. dollars of our foreign debt service obligations.

**Commodity Risk**

Prices for pulp, forestry and wood products can fluctuate significantly, and our revenues are highly sensitive to fluctuations in such prices. For a more detailed discussion and sensitivity analysis relating to the risks arising from changes in the market price of pulp, which is our primary commodity risk, see Note 23 to our audited consolidated financial statements included elsewhere in this annual report. As of December 31, 2025, we were party to derivative contracts to partially hedge our exposure to Fuel Oil N° 6 in Uruguay, which includes commodity swap agreements. See "Item 5. Operating and Financial review and Prospects—Hedging" and Note 23 to our audited consolidated financial statements included elsewhere in this annual report.

**Item 12. Description of Securities Other than Equity Securities**

Not applicable.

**PART II**

**Item 13. Defaults, Dividend Arrearages and Delinquencies**

None.

**Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds**

None.

**Item 15. Controls and Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Disclosure controls and procedures.* We carried out an evaluation under the supervision and with the participation of our senior management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as of December 31, 2025. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures, as of December 31, 2025, were effective to provide reasonable assurance that information required to be disclosed in the reports we file and submit under the U.S. Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Management's annual report on internal controls and procedures.* Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. Under the supervision and with the participation of our senior management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in *Internal Control-Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS Accounting Standards. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS Accounting Standards, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Based on our evaluation under the framework in *Internal Control-Integrated Framework (2013)*, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Attestation Report of the registered public accounting firm*. Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Changes in internal controls over financial reporting.* There has been no change in our internal control over financial reporting during 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**Item 16A. Audit Committee Financial Expert**

We have an Audit Committee, described in "Item 6. Directors, Senior Management and Employees-Directors and Executive Officers." We believe that the members of our Audit Committee have sufficient financial and other experience to perform their responsibilities. Our Board of Directors has determined that Timothy C. Purcell qualifies as an "audit committee financial expert" within the meaning of Item 16A of Form 20-F and is independent as that term is defined in Rule 10A-3 under the Exchange Act. For a description of Mr. Purcell's professional experience, see "Item 6. Directors, Senior Management and Employees—Directors and Executive Officers."

**Item 16B. Code of Ethics**

We have adopted a code of ethics, as defined in Item 16B of Form 20-F under the Securities Exchange Act of 1934, as amended. Our code of ethics applies to all of our employees and directors, including, but not limited to, our Chief Executive Officer and Chief Financial Officer. We will provide any person without charge, upon request, a copy of such code of ethics. Requests for a copy of the code of ethics may be made to Celulosa Arauco y Constitución S.A., El Golf 150, 14th Floor, Santiago, Chile, Attn: Gianfranco Truffello, tel. (562) 2461-7200. Our code of ethics is also published on our website at <u>www.arauco.cl</u>or <u>www.arauco.com</u>. If we amend the provisions of our code of ethics that apply to our Chief Executive Officer and Chief Financial Officer, or if we grant any waiver of such provisions, we will disclose the amendment or waiver in our annual report on Form 20-F.

On December 20, 2016, we amended our code of ethics to incorporate provisions relating to the protection of corporate property, a declaration of our five corporate values, an extension of the scope of persons who can inform breaches under the code of ethics and an amendment to the list of crimes for which the Company may be liable. In October 2019, we amended our code of ethics in order to update its content and include the new functions of the recently established Compliance and Ethics Committee. In January 2023, we adjusted our code of ethics to state explicitly our commitment to respect human rights, to incorporate a new chapter about the reporting hotline, and to include other adjustments intended to provide a global scope and update the content of the code of ethics as a result of the experience gained in recent years.

Item 16C. Principal Accountant Fees and Services

**Audit and Non-Audit Fees**

Our independent auditors for the fiscal year ended December 31, 2025 and 2024 were PricewaterhouseCoopers Consultores Auditores y Compañía Limitada ("PwC"; PCAOB ID: 1364) located in Santiago, Chile. The following table sets forth the fees billed to us by our independent auditors PwC, during the fiscal years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
|  | **(U.S.$ in thousands)** | **(U.S.$ in thousands)** |
| Audit fees<br>| $2542 | $2673 |
| Audit-related fees<br>| $- | - |
| Tax fees<br>| $323 | $372 |
| Other fees<br>| $4 | - |
| Total fees<br>| $2869 | $3045 |

---

Audit fees in the above table are the aggregate fees billed by PwC for the fiscal years ended December 31, 2025 and 2024, in each case in connection with the audit of our annual financial statements in accordance with IFRS Accounting Standards, as well as the review of other filings.

Audit-related fees in the above table are the aggregate fees billed by PwC for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements or that are traditionally performed by the external auditor.

Tax fees in the above table are fees billed by PwC for the fiscal years ended December 31, 2025 and 2024, associated with tax compliance services in Chile, Brazil, Argentina, Colombia, Uruguay, Peru, Netherland, The United States and Mexico; and tax consultation services in Chile.

**Audit Committee Approval Policies and Procedures**

Our Board of Directors has established pre-approval policies and procedures for the engagement of our independent auditors. Pursuant to our pre-approval policy, our Board of Directors has pre-approved a list of services that our independent auditors are allowed to provide to us or our subsidiaries.

Additionally, our Board of Directors expressly approves, on a case-by-case basis, any engagement of our independent auditors for audit and non-audit services that are not included on the pre-approved list.

All of the services referred to in the first paragraph of this Item were approved by the Board of Directors pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

**Item 16D. Exemptions from the Listing Standards for Audit Committees**

Not applicable.

**Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

Not applicable.

**Item 16F. Change in Registrant's Certifying Accountant**

Not applicable.

**Item 16G. Corporate Governance**

Not applicable. Neither our stock nor our SEC-registered securities are listed on any stock exchange or other regulated market.

**Item 16H. Mine Safety Disclosures**

Not applicable.

**Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**Item 16J. Insider Trading Policies**

Arauco' s Crime Prevention Model has identified the risk of insider trading in the Company's activities, together with the existing policies and procedures designed to prevent its occurrence. The primary policy and procedure in this regard is the "Manual de Manejo de Información de Interés para el Mercado" (Information of Interest to the Market Management Manual), in which Arauco has established policies and procedures governing the purchase and sale of its securities by directors, officers, employees, and other individuals with access to material non-public information. These policies, were initially adopted in 2010 and were last updated on July 23, 2024. The manual is designed to promote compliance with insider trading laws, including the Securities Exchange Act of 1934, as well as applicable stock exchange listing standards and local regulations, including those of the Commission for the Financial Market. The key policies and procedures are outlined below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Definitions and Scope:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Privileged Information: Refers to any non-public information that, if disclosed, could influence the price of the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Essential Information: Information that a reasonable investor would deem important when making investment decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reserved Information: Essential information classified as reserved by the Board of Directors, which cannot be disclosed until authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Regulations and Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disclosure of Information: Essential information is disclosed to the Commission for the Financial Market and the relevant stock exchanges in compliance with the established deadlines and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Blocking Periods: A blocking period of thirty days prior to the disclosure of the Company's financial statements is established, during which individuals with access to privileged information are prohibited from trading the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Safeguarding and Disclosure Mechanisms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Confidential Information Safeguarding: The Company employs electronic systems with appropriate safeguards and backup procedures to protect confidential information from unauthorized access or disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Continuous Disclosure: Material information relevant to the market is disclosed simultaneously to both the specific group and the general market, through the Company's website, ensuring transparency and compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Sanctions Application:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investigation and Sanctions: Alleged violations of the insider trading policies are thoroughly investigated by the Board of Directors. Sanctions may include verbal or written reprimands, dismissal of the offender, and, if applicable, reporting to the Commission for the Financial Market and other relevant regulatory bodies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Training and Dissemination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Training Activities: The Chief Executive Officer and the Senior Vice-President of Human Resources & Sustainability teams are responsible for implementing regular training programs to ensure that employees understand and comply with the insider trading policies outlined in the manual.

For further information on our insider trading policy, please refer to Exhibit 11.1 to this annual report.

**Item 16K. Cybersecurity**

We maintain a process for assessing, identifying and managing material risks from cybersecurity threats, including risks relating to disruption of business operations or financial reporting systems, intellectual property theft; fraud; extortion; harm to employees or customers; violation of privacy laws and other litigation and legal risk; and reputational risk, as part of our overall risk management system and processes.

We asses and manage our cybersecurity risks through our Information Technologies Committee, which is integrated by the Chief Executive Officer, the Chief Financial Officer, the Senior Vice Presidents of the Company and our Chief Information Officer. This Committee meets on a biannual basis.

The Chief Executive Officer presents to our Board of Directors, on a yearly basis, the work carried out on the identification, categorization, and mitigation procedures put in place in relation to the most relevant risks of the Company, made by the Risk Committee, including cybersecurity risks. In this sense, risks related to cybersecurity have been categorized as "high relevance" for the Company. See "Item 3—Risk Factors" for more information on our cybersecurity-related risks. To further strengthen our cybersecurity posture, we regularly engage expert advisors for services such as process and vulnerability reviews, ethical hacking and security maturity assessments based on best practices and international standards. Additionally, we maintain continuous services such as a 24x7 Security Operation Center (SOC), security platform management, digital surveillance, among other and ongoing efforts to foster a strong cybersecurity culture.

Our cybersecurity risk management processes include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Asset Management: We maintain a continuous process that includes the identification and inventory of hardware and software assets. This process includes useful life management and obsolescence analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Access Management: We maintain a continuous process that includes, user identification, registration and authentication, assignment of permissions and roles, password policies, conditional access and two-factor authentication, as well as control over remote access, approval policies and session recording, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Vulnerability Scanning & Patching: We maintain an ongoing process of vulnerability scanning and updates and a monthly patching process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Monitoring of security alerts/events in administrative and industrial networks: Our cybersecurity systems such as Endpoint Detection and Response ("EDR"), Next Generation Firewall ("NGFW") and others, are monitored by a continuously operating Security Operation Center ("SOC"), where events from our main platforms are correlated. The alerts are managed by our response team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Awareness: We maintain a user awareness process, with phishing campaigns, mailings, webinars and e- learning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Change of management: We have a change of management process validating the different initiatives and ensuring operational continuity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Recovery: Our main systems have Disaster Recovery Plan ("DRP") and backup and we test them periodically, including our industrial environments.

Additionally, in connection with our cybersecurity risk management processes, we engage to.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Maintain a continuous cybersecurity management process, aligned with the security practices defined in ISO 27001/2, ISO 27032/NIST, ISA/IEC 62443, NERC- CIP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Execute assessment and ethical hacking on the different platforms and systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Develop Incident Response Plan / Table Top Exercises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Regular processes of internal audit.

The cybersecurity risk management processes are primarily managed by our Chief Financial Officer, who is responsible for overseeing risks from cybersecurity threats, including those affecting both administrative and industrial environments. To fulfill this responsibility, the Chief Financial Officer meets bimonthly with the Chief Information Officer and the Chief Information Security Officer to review and discuss the status of various cybersecurity risks and related processes, receiving detailed reports on key areas, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Vulnerabilities status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Obsolescence analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Cybersecurity alert status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assessment and/or Ethical hacking status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Cybersecurity indicators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Status of implementation of the strategic cybersecurity plan.

In assessing and managing cybersecurity and technological risks, the Company relies on a highly experienced team in key management positions, each with extensive expertise in their respective fields. The Chief Information Security Officer, holding a degree in Civil Industrial Engineer with a major in Computer Science from Pontificia Universidad Católica de Chile, a Cybersecurity Management Diploma from UAI, and certifications in ISO 27001/2, ISO 27032, and NIST, has over 20 years of experience in cybersecurity across the financial, retail, energy sectors, and audit firms. The Chief Information Officer, with a degree in Computer Science Engineering and more than 30 years of experience in IT across telecommunications, financial services, retail, and industrial sectors, has over 15 years of leadership experience in IT and cybersecurity teams. The Chief Information Officer also holds an MBA with a specialization in management. Lastly, the Chief Financial Officer serves as a member of Arauco's executive committee and has over 10 years of leading the IT team as part of his role as Chief Financial Officer. This collective expertise allows us to have a strategic approach to identifying, assessing, and mitigating technological and cybersecurity risks, providing a comprehensive framework for risk management across the organization.

We have developed and implemented a third-party risk management methodology, including an evaluation dashboard to assess and monitor supplier risk levels. Going forward, we will conduct risk assessments of critical suppliers and evaluate third-party risk monitoring solutions to enhance ongoing oversight.

Third-party services are evaluated against our cybersecurity policies and contractual security requirements to ensure alignment with the organization's risk management framework. The Information Technologies Committee provides oversight of this process, reviewing identified risks and directing remediation actions as required. This approach enables structured, risk-based management of third-party cybersecurity exposure and supports continuous improvement of our security posture.

During 2025, we continued to strengthen our cybersecurity governance, controls, monitoring capabilities and response processes. We did not experience any cybersecurity incidents that materially affected our business, financial condition or results of operations during

this period. However,

we cannot provide assurance that future incidents will not occur or that our implemented measures will be sufficient to prevent or mitigate all cybersecurity threats. The evolving nature and increasing sophistication of cyberattacks, combined with the ongoing integration of new technologies into our operations, may result in increased cybersecurity risk exposure. Any future material cybersecurity incident could adversely affect our business, operations, customer relationships or financial results. See "Item 3—Risk Factors" for more information on our cybersecurity-related risks

.

**PART III**

**Item 17. Financial Statements**

Not applicable.

**Item 18. Financial Statements**

Our audited consolidated financial statements have been prepared in accordance with IFRS Accounting Standards, and are included in this annual report beginning at page F-1.

**Item 19. Exhibits**

Documents filed as exhibits to this annual report:

---

| | |
|:---|:---|
| [1.1](ara027_ex1-1.htm) | [English translation of the *estatutos* (by-laws) of Celulosa Arauco y Constitución S.A., as of March 14, 2025, including the amendment approved on October 17, 2024.](ara027_ex1-1.htm) |
| [8.1](ara027_ex8-1.htm) | [List of subsidiaries](ara027_ex8-1.htm) |
| [11.1](ara027_ex11-1.htm) | [English translation of the Manual de Manejo de Información de Interés para el Mercado (Market Information Management Manual)](ara027_ex11-1.htm) |
| [12.1](ara027_ex12-1.htm) | [Certification of chief executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ara027_ex12-1.htm) |
| [12.2](ara027_ex12-2.htm) | [Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ara027_ex12-2.htm) |
| [13.1](ara027_ex13-1.htm) | [Certification of chief executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ara027_ex13-1.htm) |
| 101.INS<br>| Inline XBRL Instance Document<br>|
| 101.SCH<br>| Inline XBRL Taxonomy Extension Schema Linkbase Document<br>|
| 101.CAL <br>| Inline XBRL Taxonomy Extension Calculation Linkbase Document<br>|
| 101.DEF<br>| Inline XBRL Taxonomy Extension Definition Linkbase Document<br>|
| 101.LAB <br>| Inline XBRL Taxonomy Extension Label Linkbase Document<br>|
| 101.PRE<br>| Inline XBRL Taxonomy Extension Presentation Linkbase Document<br>|
| 104<br>| Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)<br>|

---

Omitted from the exhibits filed with this annual report are certain instruments and agreements with respect to our long-term debt, none of which authorizes securities in a total amount that exceeds 10% of our total assets. We hereby agree to furnish to the SEC copies of any such omitted instruments or agreements as the SEC requests.

Index of Exhibits

---

| | |
|:---|:---|
| [1.1](ara027_ex1-1.htm) | [English translation of the *estatutos* (by-laws) of Celulosa Arauco y Constitución S.A., as of March 14, 2025, including the amendment approved on October 17, 2024.](ara027_ex1-1.htm) |
| [8.1](ara027_ex8-1.htm) | [List of subsidiaries](ara027_ex8-1.htm) |
| [11.1](ara027_ex11-1.htm) | [English translation of the Manual de Manejo de Información de Interés para el Mercado (Market Information Management Manual)](ara027_ex11-1.htm) |
| [12.1](ara027_ex12-1.htm) | [Certification of chief executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ara027_ex12-1.htm) |
| [12.2](ara027_ex12-2.htm) | [Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ara027_ex12-2.htm) |
| [13.1](ara027_ex13-1.htm) | [Certification of chief executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ara027_ex13-1.htm) |
| 101.INS<br>| Inline Instance Document<br>|
| 101.SCH<br>| Inline Taxonomy Extension Schema Linkbase Document<br>|
| 101.CAL <br>| Inline Taxonomy Extension Calculation Linkbase Document<br>|
| 101.DEF<br>| Inline Taxonomy Extension Definition Linkbase Document<br>|
| 101.LAB <br>| Inline Taxonomy Extension Label Linkbase Document<br>|
| 101.PRE<br>| Inline Taxonomy Extension Presentation Linkbase Document<br>|
| 104<br>| Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)<br>|

---

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | |
|:---|:---|
| CELULOSA ARAUCO Y CONSTITUCIÓN S.A. | CELULOSA ARAUCO Y CONSTITUCIÓN S.A. |
| **By:** | **/s/** Cristián Infante Bilbao<br>|
|  | Cristián Infante Bilbao<br>|
|  | Chief Executive Officer<br>|

---

Date: March

, 2026

CONSOLIDATED

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2025 AND 2024 AND FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

INDEX

---

| | |
|:---|:---|
|  | Page |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID 1364)](#a_001_reportofindepen) | [F-1](#a_001_reportofindepen) |
| [CONSOLIDATED STATEMENTS OF FINANCIAL POSITION](#a_001_consolidatedsta) | [F-3](#a_001_consolidatedsta) |
| [CONSOLIDATED STATEMENTS OF PROFIT OR LOSS](#a_002_consolidatedsta) | [F-5](#a_002_consolidatedsta) |
| [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME](#a_003_consolidatedsta) | [F-6](#a_003_consolidatedsta) |
| [CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY](#a_004_consolidatedsta) | [F-7](#a_004_consolidatedsta) |
| [CONSOLIDATED STATEMENTS OF CASH FLOWS](#a_005_consolidatedsta) | [F-8](#a_005_consolidatedsta) |
| [NOTE 1. PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS](#a_006_notestoconsolid) | [F-9](#a_006_notestoconsolid) |
| [NOTE 2. ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES](#a_007_note2accounting) | [F-28](#a_007_note2accounting) |
| [NOTE 3. DISCLOSURE OF OTHER INFORMATION](#a_008_note3disclosure) | [F-28](#a_008_note3disclosure) |
| [NOTE 4. INVENTORIES](#a_009_note4inventorie) | [F-32](#a_009_note4inventorie) |
| [NOTE 5. CASH AND CASH EQUIVALENTS](#a_010_note5cashandcas) | [F-32](#a_010_note5cashandcas) |
| [NOTE 6. INCOME TAXES](#a_011_note6incometaxe) | [F-34](#a_011_note6incometaxe) |
| [NOTE 7. PROPERTY, PLANT AND EQUIPMENT](#a_012_note7propertypl) | [F-38](#a_012_note7propertypl) |
| [NOTE 8. Leases](#a_013_note8leases) | [F-40](#a_013_note8leases) |
| [NOTE 9. REVENUE](#a_014_note9revenue) | [F-42](#a_014_note9revenue) |
| [NOTE 10. EMPLOYEE BENEFITS](#a_015_note10employeeb) | [F-43](#a_015_note10employeeb) |
| [NOTE 11. BALANCES IN FOREIGN CURRENCY AND FOREIGN CURRENCY EXCHANGE RATE IMPACT IN PROFIT OR LOSS.](#a_016_note11balancesi) | [F-44](#a_016_note11balancesi) |
| [NOTE 12. BORROWING COSTS](#a_017_note12borrowing) | [F-49](#a_017_note12borrowing) |
| [NOTE 13. RELATED PARTIES](#a_018_note13relatedpa) | [F-49](#a_018_note13relatedpa) |
| [NOTE 14. INVESTMENTS IN SUBSIDIARIES](#a_019_note14investmen) | [F-53](#a_019_note14investmen) |
| [NOTE 15. INVESTMENTS IN ASSOCIATES](#a_020_note15investmen) | [F-53](#a_020_note15investmen) |
| [NOTE 16. INTERESTS IN JOINT ARRANGEMENTS](#a_021_note16interests) | [F-56](#a_021_note16interests) |
| [NOTE 17. IMPAIRMENT OF ASSETS](#a_022_note17impairmen) | [F-60](#a_022_note17impairmen) |
| [NOTE 18. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES](#a_023_note18provision) | [F-63](#a_023_note18provision) |
| [NOTE 19. INTANGIBLE ASSETS](#a_024_note19intangibl) | [F-65](#a_024_note19intangibl) |
| [NOTE 20. BIOLOGICAL ASSETS](#a_025_note20biologica) | [F-66](#a_025_note20biologica) |
| [NOTE 21. ENVIRONMENTAL MATTERS](#a_026_note21environme) | [F-70](#a_026_note21environme) |
| [NOTE 22. NON-CURRENT ASSETS HELD FOR SALE](#a_027_note22noncurren) | [F-72](#a_027_note22noncurren) |
| [NOTE 23. FINANCIAL INSTRUMENTS](#a_028_note23financial) | [F-73](#a_028_note23financial) |
| [NOTE 24. REPORTABLE SEGMENTS](#a_029_note24reportabl) | [F-95](#a_029_note24reportabl) |
| [NOTE 25. OTHER NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES](#a_030_note25othernonf) | [F-100](#a_030_note25othernonf) |
| [NOTE 26. DISTRIBUTABLE NET Profit AND EARNINGS PER SHARE](#a_031_note26distribut) | [F-100](#a_031_note26distribut) |
| [NOTE 27. SUBSEQUENT EVENTS](#a_032_note27subsequen) | [F-101](#a_032_note27subsequen) |

---

![](ara027_img01.jpg)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Celulosa Arauco y Constitución S.A.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of Celulosa Arauco y Constitución S.A. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of profit or loss, comprehensive income, changes in the equity and cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](ara027_img01.jpg)

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Biological Assets

As described in Notes 1q) and 20 to the consolidated financial statements, the Company's consolidated biological assets balance was US$3,337,937 thousand at December 31, 2025. Management measures biological assets at fair value less cost to sell. Fair value is estimated by management using a discounted cash flow model. Management's cash flow projections included significant judgments and assumptions relating to forest growth, sales margins and discount rates.

The principal considerations for our determination that performing procedures relating to the valuation of biological assets is a critical audit matter are (i) the significant judgment by management when developing the fair value measurement of the biological assets; (ii) a high degree of auditor judgement, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to forest growth, sales margins and discount rates; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others (i) testing management's process for developing the fair value estimate; (ii) evaluating the appropriateness of the discounted cash flow model; (iii) testing the completeness and accuracy of underlying data used in the model; and (iv) evaluating the significant assumptions used by management related to forest growth, sales margins and discount rates. Evaluating management's assumptions related to forest growth, sales margins and discount rates involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the biological assets; (ii) the consistency with external market and industry data and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in the evaluation of the Company's discounted cash flow model and significant assumptions, including the forest growth, sales margins and discount rates.

/s/ PricewaterhouseCoopers Consultores, Auditores y Compañia Limitada

Santiago, Chile

March 18, 2026

We have served as the Company's auditor since 2015.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

---

| | | | |
|:---|:---|:---|:---|
|  |  | 12-31-2025 | 12-31-2024 |
|  | Note | ThU.S.$ | ThU.S.$ |
| Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 5-23 | 1284053 | 1071560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current financial assets | 23 | 231024 | 25960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current non-financial assets | 25 | 212816 | 261092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other current receivables | 23 | 832166 | 1054707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable from related companies | 13-23 | 490 | 10159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current inventories | 4 | 1516639 | 1456260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current biological assets | 20 | 236333 | 315500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current tax assets | 6 | 76309 | 75613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets other than assets or disposal groups classified as held for sale |  | **4389830**  | **4270851**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-current assets or disposal groups classified as held for sale | 22 | 3901 | 3767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets  |  | **4393731**  | **4274618**  |
| &nbsp;&nbsp;&nbsp;Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current financial assets | 23 | 257498 | 16747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current non-financial assets | 25 | 655854 | 85036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-current receivables | 23 | 79325 | 65735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments accounted for using equity method | 15-16 | 483542 | 406611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets other than goodwill | 19 | 50493 | 55980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 17 | 52681 | 51325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 7 | 11124813 | 9610071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use assets | 8 | 1003718 | 771886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-current biological assets | 20 | 3101604 | 2747894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 6 | 101504 | 73409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets |  | 16911032 | **13884694**  |
| &nbsp;&nbsp;&nbsp;Total assets |  | 21304763 | **18159312**  |

---

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)

---

| | | | |
|:---|:---|:---|:---|
|  |  | 12-31-2025 | 12-31-2024 |
|  | Note | ThU.S.$ | ThU.S.$ |
| Equity and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp; Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current financial liabilities | 5-23 | 708470 | 348905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current lease liabilities | 8-23 | 55823 | 55851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade and other current payables | 23 | 1043241 | 745971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable to related companies | 13-23 | 9437 | 10563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other short-term provisions | 18 | 3055 | 1837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current tax liabilities | 6 | 30405 | 27565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current provisions for employee benefits | 10 | 7501 | 6669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current non-financial liabilities | 25 | 73643 | 165589 |
| &nbsp;&nbsp;&nbsp; Total current liabilities |  | **1931575**  | **1362950**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current financial liabilities | 5-23 | 6939288 | 5721712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current lease liabilities | 8-23 | 959237 | 672139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current payables | 23 | 53713 | 35310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current accounts payable to related companies | 13-23 | 23924 | 26207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other long-term provisions | 18 | 38588 | 33121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities | 6 | 1550057 | 1469512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current tax liabilities, non-current | 6 | 7256 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current provisions for employee benefits | 10 | 87359 | 77634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current non-financial liabilities | 25 | 30288 | 37012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-current liabilities |  | 9689710 | **8072647**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | 11621285 | **9435597**  |
| &nbsp;&nbsp;&nbsp; Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued capital | 3 | 1553618 | 1103618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  | 8328561 | 8312384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reserves |  | (204592) | (698747) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity attributable to owners of parent company |  | 9677587 | **8717255**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | 5891 | 6460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity |  | 9683478 | **8723715**  |
| Total equity and liabilities |  | 21304763 | **18159312**  |

---

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | For the years ended December 31, | For the years ended December 31, | For the years ended December 31, |
|  |  | 2025 | 2024 | 2023 |
|  | Note  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Statements of profit or loss |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue | 9 | 6084142 | 6546146 | 6011819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales | 3 | (4546861) | (4634149) | (4744095) |
| &nbsp;&nbsp;&nbsp; Gross profit (loss) |  | **1537281**  | **1911997**  | **1267724**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 3 | 324023 | 597061 | 573017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution costs | 3 | (677734) | (695377) | (693039) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative expenses | 3 | (560830) | (565027) | (624326) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expense by function | 3 | (130280) | (212213) | (480336) |
| &nbsp;&nbsp;&nbsp; Profit (loss) from operating activities |  | **492460**  | **1036441**  | **43040**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance income | 3 | 62560 | 66355 | 131666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance costs | 3 | (409724) | (397923) | (373496) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of profit (loss) of associates and joint ventures accounted for using equity method | 3-15 | (3865) | (45792) | 7709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on exchange differences on translation |  | (60748) | (12400) | (194739) |
| &nbsp;&nbsp;&nbsp; Profit (loss) before income tax |  | **80683**  | **646681**  | **(385820)**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit (expense) | 6 | (39804) | (170400) | 27293 |
| &nbsp;&nbsp;&nbsp; Net profit (loss) |  | **40879**  | **476281**  | **(358527)**  |
| Net profit (loss) attributable to |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net profit (loss) attributable to owners of parent company |  | 41300 | 476470 | (358560) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net profit (loss) attributable to non-controlling interests |  | (421) | (189) | 33 |
| &nbsp;&nbsp;&nbsp; Net profit (loss) |  | **40879**  | **476281**  | **(358527)**  |
| Earnings (loss) per share |  |  |  |  |
| Basic earnings (loss) per share (in U.S.$ per share) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings (loss) per share from continuing operations | 26 | 0.3295 | 3.9241 | (2.9762) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings (loss) per share |  | **0.3295**  | **3.9241**  | **(2.9762)**  |
| Diluted earnings (loss) per share (in U.S.$ per share) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings (loss) per share from continuing operations  |  | 0.3295 | 3.9241 | (2.9762 ) <br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings (loss) per share |  | **0.3295**  | **3.9241**  | **(2.9762)**  |

---

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | For the years ended December 31, | For the years ended December 31, | For the years ended December 31, |
|  |  | 2025 | 2024 | 2023 |
|  | **Note**  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Net profit (loss) |  | **40879**  | **476281**  | **(358527)**  |
| Components of other comprehensive income (loss) that will not be reclassified to profit or loss before tax: |  |  |  |  |
| Remeasurements of defined benefit plans |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before tax gains losses on remeasurements of defined benefit plans | 10 | 4644 | (766) | (2726) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) that will not be reclassified to profit or loss before tax |  | **4644**  | **(766)**  | **(2726)**  |
| Components of other comprehensive income (loss) that will be reclassified to profit or loss before tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Exchange differences on translation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gains (losses) on exchange differences on translation, before tax | 11 | 133703 | 259895 | 121470 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before tax exchange differences on translation |  | **133703**  | **259895**  | **121470**  |
| &nbsp;&nbsp;&nbsp;Cash flow hedges |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gains (losses) on cash flow hedges, before tax | 23 | 461238 | 27762 | (72816) |
| &nbsp;&nbsp;&nbsp;Reclassification adjustments on cash flow hedges before tax | 23 | -  | (6747) | (1634) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before tax cash flow hedges |  | **461238**  | **21015**  | **(74450)**  |
| Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax |  | 1509 | 10911 | 308 |
| &nbsp;&nbsp;&nbsp;Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax |  | **1509**  | **10911**  | **308**  |
| &nbsp;&nbsp;&nbsp;Other Comprehensive income (loss) that will be reclassified to profit or loss before tax |  | **596450**  | **291821**  | **47328**  |
| Income tax relating to components of other comprehensive income (loss) that will not be reclassified to profit or loss before tax |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Income tax relating to remeasurements of defined benefit plans of other comprehensive income (loss) | 6 | (1254) | 207 | 736 |
| &nbsp;&nbsp;&nbsp;Income tax relating to components of other comprehensive income (loss) that will not be reclassified to profit or loss before tax |  | **(1254)**  | **207**  | **736**  |
| Income tax relating to components of other comprehensive income (loss) that will be reclassified to profit or loss before tax |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Income tax relating to exchange differences on translation of other comprehensive income (loss) |  | - <br>| (135171 ) <br>| 135171 <br>|
| &nbsp;&nbsp;&nbsp;Income tax relating to cash flow hedges of other comprehensive income (loss) | 6-23 | (123732) | (6075) | 19610 |
| &nbsp;&nbsp;&nbsp;Income tax relating to share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss |  | (312) | (2450) | (218) |
| &nbsp;&nbsp;&nbsp;Income tax relating to components of other comprehensive income that will be reclassified to profit or loss  |  | **(124044)**  | **(143696)**  | **154563**  |
| Other comprehensive income (loss) |  | **475796**  | **147566**  | **199901**  |
| Total comprehensive income (loss) |  | **516675**  | **623847**  | **(158626)**  |
| Comprehensive Income (loss) attributable to |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Comprehensive income (loss), attributable to owners of parent company |  | 516958 | 624409 | (158848) |
| &nbsp;&nbsp;&nbsp;Comprehensive income (loss), attributable to non-controlling interests |  | (283) | (562) | 222 |
| Total comprehensive income (loss) |  | 516675 | **623847**  | **(158626)**  |

---

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 12-31-2025 | Issued <br>capital <br>ThU.S.$ | Reserve of <br>exchange differences on <br>translation<br>ThU.S.$ | Reserve of <br>cash flow <br>hedges <br>ThU.S.$ | Reserve of <br>actuarial <br>losses on <br>defined<br>benefit plans <br>ThU.S.$ | Other reserves <br>ThU.S.$ | **Total other** <br>**reserves** <br>ThU.S.$ | Retained <br>earnings <br>ThU.S.$ | **Equity** <br>**attributable** <br>**to owners of** <br>parent | Non- <br>controlling <br>interests <br>ThU.S.$ | **Total** <br>**equity** <br>ThU.S.$ |
| Opening balance at 01-01-2025 | 1103618 | **(715780)**  | **(50012)**  | **(37923)**  | 104968 | **(698747)**  | 8312384 | 8717255 | 6460 | 8723715 |
| Changes in Equity: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Comprehensive income |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net profit (loss) | - | - | - | - | - | - | 41300 | 41300 | (421) | 40879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax | - | 133565 | 337506 | 3390 | 1197 | 475658 | - | 475658 | 138 | 475796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | - | **133565**  | **337506**  | 3390 | **1197**  | **475658**  | **41300**  | **516958**  | **(283)**  | **516675**  |
| &nbsp;&nbsp;&nbsp;Equity issue | 450000 | - | - | - | - | - | - | 450000 | - | 450000 |
| &nbsp;&nbsp;&nbsp;Dividends |  | - | - | - | - | - | (8449) | (8449) | (286) | (8735) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) through transfers and other changes equity | - | - | - | - | 18497 | 18497 | (18497) | - | - | - |
| &nbsp;&nbsp;&nbsp;Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control | - | - | - | - | - | - | 1823 | 1823 | - | 1823 |
| &nbsp;&nbsp;&nbsp;Changes in equity | 450000 | **133565**  | **337506**  | **3390**  | **19694**  | **494155**  | **16177**  | **960332**  | **(569)**  | **959763**  |
| Closing balance at 12-31-2025 | 1553618 | **(582215)**  | **287494**  | **(34533)**  | **124662**  | **(204592)**  | **8328561**  | **9677587**  | **5891**  | **9683478**  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 12-31-2024 | Issued <br>capital <br>ThU.S.$ | Reserve of <br>exchange differences on <br>translation <br>ThU.S.$ | Reserve of <br>cash flow <br>hedges <br>ThU.S.$ | Reserve of <br>actuarial <br>losses on <br>defined<br>benefit plans <br>ThU.S.$ | Other <br>reserves <br>ThU.S.$ | **Total other** <br>**reserves** <br>ThU.S.$ | Retained <br>earnings <br>ThU.S.$ | **Equity** <br>**attributable** <br>**to owners of** <br>parent | Non- <br>controlling <br>interests <br>ThU.S.$ | **Total** <br>**equity** <br>ThU.S.$ |
| Opening balance at 01-01-2024 | 803618 | **(840877)**  | **(64952)**  | **(37364)**  | 107058 | **(836135)**  | 8034963 | 8002446 | 6583 | 8009029 |
| Changes in Equity: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Comprehensive income |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net profit (loss) | - | - | - | - | - | - | 476470 | 476470 | (189) | 476281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax | - | 125097 | 14940 | (559) | 8461 | 147939 | - | 147939 | (373) | 147566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | - | 125097 | 14940 | **(559)**  | 8461 | 147939 | 476470 | 624409 | **(562)**  | 623847 |
| &nbsp;&nbsp;&nbsp;Equity issue  | 300000 | - | - | - | - | - | - | 300000 | 664 | 300664 |
| &nbsp;&nbsp;&nbsp;Dividends | - | - | - | - | - | - | (206684) | (206684) | (225) | (206909) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) through transfers and other changes equity | - | - | - | - | (10551) | **(10551)**  | 10551 | - | - | - |
| &nbsp;&nbsp;&nbsp;Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control | - | - | - | - | - | - | (2916) | (2916) | - | (2916) |
| &nbsp;&nbsp;&nbsp;Changes in equity | 300000 | 125097 | 14940 | **(559)**  | **(2090)**  | 137388 | 277421 | 714809 | **(123)**  | 714686 |
| Closing balance at 12-31-2024 | 1103618 | **(715780)**  | **(50012)**  | **(37923)**  | 104968 | **(698747)**  | 8312384 | 8717255 | 6460 | 8723715 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 12-31-2023 | Issued <br>capital <br>ThU.S.$ | Reserve of <br>exchange differences on <br>translation <br>ThU.S.$ | Reserve of <br>cash flow <br>hedges<br>ThU.S.$ | Reserve of <br>actuarial losses on <br>defined <br>benefit plans <br>ThU.S.$ | Other <br>reserves <br>ThU.S.$ | **Total other** <br>**reserves** <br>ThU.S.$ | Retained <br>earnings ThU.S.$ | **Equity** <br>**attributable** <br>**to owners of** <br>**parent** <br>ThU.S.$ | Non- <br>controlling <br>interests <br>ThU.S.$ | **Total** <br>**equity** <br>ThU.S.$ |
| Opening balance at 01-01-2023 | **803618**  | **(1097329)**  | **(10112)**  | **(35374)**  | 93091 | **(1049724)**  | 8500901 | 8254795 | 5189 | 8259984 |
| Changes in Equity: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Comprehensive income |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net profit (loss) | - | - | - | - | - | - | (358560) | (358560) | 33 | (358527) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax | - | 256452 | (54840) | (1990) | 90 | 199712 | - | 199712 | 189 | 199901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | **-**  | **256452**  | **(54840)**  | **(1990)**  | 90 | 199712 | **(358560)**  | **(158848)**  | 222 | **(158626)**  |
| &nbsp;&nbsp;&nbsp;Equity issue  | - | - | - | - | - | - | - | - | 1376 | 1376 |
| &nbsp;&nbsp;&nbsp;Dividends | - | - | - | - | - | - | (92719) | (92719) | (204) | (92923) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) through transfers and other changes equity | - | - | - | - | 13877 | 13877 | (13877) | - | - | - |
| &nbsp;&nbsp;&nbsp;Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control | - | - | - | - | - | - | (782) | (782) | - | (782) |
| &nbsp;&nbsp;&nbsp;Changes in equity | **-**  | 256452 | **(54840)**  | **(1990)**  | 13967 | 213589 | **(465938)**  | **(252349)**  | 1394 | **(250955)**  |
| Closing balance at 12-31-2023 | **803618**  | **(840877)**  | **(64952)**  | **(37364)**  | 107058 | **(836135)**  | 8034963 | 8002446 | 6583 | 8009029 |

---

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| STATEMENTS OF CASH FLOWS |  |  |  |
| Cash flows from (used in) operating activities |  |  |  |
| Classes of cash receipts from operating activities |  |  |  |
| Receipts from sales of goods and rendering of services | 6676865 | 6854709 | 6211313 |
| Receipts from rents and subsequent sales of such assets | 38222 | 23075 | 16509 |
| Other cash receipts from operating activities  | 751132 | 840543 | 702283 |
| Classes of cash payments |  |  |  |
| Payments to suppliers for goods and services | (5074341) | (5238597) | (5049907) |
| Payments to and on behalf of employees | (687836) | (626122) | (736789) |
| Payments to manufacture or acquire assets held for rental to others and subsequently held for sale | - | (2638) | (10848) |
| Other cash payments from operating activities | (262668) | (308264) | (174824) |
| Interest paid | (379666) | (362234) | (328317) |
| Interest received | 61240 | 65114 | 137480 |
| Income taxes (paid) refunded | (76592) | (69848) | (28463) |
| Other inflows (outflows) of cash, net | 458 | 5579 | 1990 |
| Net cash flow from (used in) operating activities | 1046814 | 1181317 | 740427 |
| Cash flows from (used in) investing activities  |  |  |  |
| Cash flow from losing control of subsidiaries and other businesses | - | 958273 | - |
| Cash flow used in obtaining control of subsidiaries or other businesses | - | (72037) | -  |
| Other cash receipts from sales of equity or debt instruments from other entities | 1931 | 7109 | - |
| Other cash payments to acquire equity or debt instruments from other entities  | (42113) | (26526) | (27528) |
| Other cash payments to acquire interests in joint ventures | (2557) | (28279) | (11222) |
| Loans to related entities | - | (5500) | - |
| Proceeds from sales of property, plant and equipment | 19345 | 37660 | 11859 |
| Purchase of property, plant and equipment  | (1648384) | (838844) | (844470) |
| Proceeds from sales of intangible assets | 514 | - | 281 |
| Purchase of intangible assets | (7395) | (6137) | (6682) |
| Proceeds from other long-term assets | 2135 | 5512 | 6088 |
| Purchase of other long-term assets | (788892) | (383912) | (411897) |
| Dividends received  | 9298 | 6982 | 4265 |
| Other inflows (outflows) of cash, net | 25093 | 16726 | (53818) |
| Cash flows from (used in) investing activities | (2431025) | (328973) | (1333124) |
| Cash flows from (used in) financing activities |  |  |  |
| Payments from changes in ownership interests in subsidiaries | - | (3600) | - |
| Proceeds from issuing shares | 450000 | 300519 | - |
| Total proceeds from borrowings | 2304939 | 1695525 | 2126607 |
| Proceeds from long-term borrowings | 1862803 | 481269 | 1160649 |
| Proceeds from short-term borrowings | 442136 | 1214256 | 965958 |
| Repayments of borrowings  | (894766) | (2132898) | (1118156) |
| Payments of lease liabilities | (101832) | (82059) | (73806) |
| Dividends paid | (114622) | (94637) | (282728) |
| Other inflows (outflows) of cash, net | (87266) | 11202 | (6250) |
| Cash flows from (used in) financing activities | 1556453 | (305948) | 645667 |
| Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes | **172242**  | 546396 | 52970 |
| Effect of exchange rate changes on cash and cash equivalents | 40251 | (44844) | (150169 ) |
| Net increase (decrease) of cash and cash equivalents | 212493 | 501552 | (97199) |
| Cash and cash equivalents, at the beginning of the period | 1071560 | 570008 | 667207 |
| Cash and cash equivalents, at the end of the period  | 1284053 | 1071560 | 570008 |

---

The accompanying notes are an integral part of these consolidated financial statements.

NOTES TO Consolidated financial statements as of DECEMBER 31, 2025 AND 2024

NOTE 1. PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

Entity information

Celulosa Arauco y Constitución S.A. and subsidiaries, (hereafter "Arauco" or the "Company"), tax identification number 93,458,000-1, is a closely held corporation. As it is an issuer of publicly offered securities (bonds), these are registered in the Securities Registry (the "Registry") of the Chilean Commission for the Financial Market ("CMF"), and the Company is therefore subject to the supervision of said Commission. Additionally, the Company is registered as a non-accelerated filer in the Securities and Exchange Commission (SEC) of the United States of America.

The Company's head office address is El Golf Avenue 150, 14<sup>th</sup>floor, Las Condes, Santiago, Chile.

Arauco is principally engaged in the production and sale of products related to the forestry and timber industries. Its main operations are focused on business areas of pulp and wood products.

As of December 31, 2025, Arauco is controlled by Empresas Copec S.A., tax identification number 90,690,000-9, which owns 99.999916% of Arauco, and is registered in the Securities Registry as No. 0028. Each of the above-mentioned companies are subject to the oversight of the CMF.

Moreover, Empresas Copec S.A. is controlled by the public corporation AntarChile S.A., tax identification number 96,556,310-5, which owns 60.8208% of Empresas Copec S.A. Furthermore, the ultimate shareholders of AntarChile S.A. and, consequently, of Empresas Copec S.A., are Mr. Roberto Angelini Rossi, tax identification number 5,625,652-0, and Mrs. Patricia Angelini Rossi, tax identification number 5,765,170-9.

Arauco's consolidated financial statements were prepared on a going concern basis.

Presentation of consolidated financial statements

The consolidated financial statements presented by Arauco are comprised by the following:

-Consolidated statements of financial position as of December 31, 2025 and 2024.

-Consolidated statements of profit or loss for the years ended December 31, 2025, 2024 and 2023.

-Consolidated statements of comprehensive income for the years ended December 31, 2025, 2024 and 2023.

-Consolidated statements of changes in equity for the years ended December 31, 2025, 2024 and 2023.

-Consolidated statements of cash flows for the years ended December 31, 2025, 2024 and 2023.

-Explanatory disclosures (notes).

Period covered by the consolidated financial statements

As of December 31, 2025 and 2024 and for the three years ended December 31, 2025, 2024 and 2023.

Date of approval of the consolidated financial statements

These consolidated financial statements were approved by the Board of Directors of the Company (the "Board") at Meeting No 754 held on March 18, 2026.

Abbreviations used in this report:

IFRS - International Financial Reporting Standards.

IASB - International Accounting Standards Board.

IAS - International Accounting Standards.

MU.S.$- Millions of U.S. dollars.

ThU.S.$- Thousands of U.S. dollars.

U.F. – Inflation index-linked units of account.

ICMS – Tax movement of inventories and services (Brazil).

ThCLP$ - Thousands of Chilean Pesos.

ThR$ - Thousands of Brazilian real.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Th

€ - Thousands of Euros

Functional and presentation currency

Arauco and most of its subsidiaries determined the United States ("U.S.") dollar as its functional currency since most of its revenues from sales of its products are derived from exports denominated in U.S. dollars, while their costs of sales are to a large extent related or indexed to the U.S. dollar.

For the pulp reportable segment, most of the sales are exports denominated in U.S. dollars and costs are mainly related to plantation costs which are settled in U.S. dollars.

For the wood reportable segment, although total sales include a mix of domestic and exports sales, prices of the products are established in U.S. dollars, which is also the case for the cost structure of the related raw materials.

In relation to the cost of sales, although labor and services costs are generally billed and paid in local currency, these costs are not as significant as the costs of raw materials, which are driven mainly by global markets and therefore, influenced mostly by the U.S. dollar.

The currency used to finance operations is mainly the U.S. dollar.

The presentation currency of the consolidated financial statements is the U.S. dollar. Figures on these consolidated financial statements are presented in thousands of rounded U.S. dollar (ThU.S.$).

Summary of significant accounting policies

a) **Basis for preparation of the consolidated financial statements** 

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and they represent the explicit and unreserved adoption of IFRS.

The consolidated financial statements have been prepared on a historical cost basis, except for biological assets and certain derivative financial instruments which are measured at revalued amounts or fair value at the end of each period as explained in the following significant accounting policies.

The consolidated statements of cash flows are presented using the direct method.

b) Critical accounting estimates and judgments

The preparation of these consolidated financial statements, in accordance with IFRS, requires management to make estimates and assumptions that affect the carrying amounts reported. These estimates are based on historical experience and various other assumptions that are considered to be reasonable. Actual results may differ from these estimates. Management believes that the accounting policies below are the critical judgments that have the most significant effect on the amounts recognized in the consolidated financial statements.

- **Biological assets**

The recovery of forest plantations is based on discounted cash flow models which means that the fair value of biological assets is calculated using cash flows from continuing operations on a discounted basis, based on our sustainable forest management plans and the estimated growth of forests.

The measurement of the fair value of the biological assets is determined using a discounted cash flow model. Our cash flow projections include significant judgments and assumptions relating to discount rates, estimated growth of the forests and sales margins. This valuation is performed on the basis of each identifiable farm block and for each type of tree. The main considerations used to calculate the valuation of forest plantations and a sensitivity analysis are presented in Note 20.

- Litigation and contingencies

Arauco and its subsidiaries are subject to certain litigation proceedings. Future impact on Arauco's financial condition derived from such litigations is estimated by management, in collaboration with its legal advisors. Arauco applies judgment when interpreting the reports of its legal advisors who provide updated estimates of the legal contingencies at each reporting period and/or at each time a modification is determined to be necessary. For a description of current litigations see Note 18.

c) Consolidation

The consolidated financial statements include all entities over which Arauco has the power to direct the relevant financial and operating activities. Subsidiaries are consolidated from the date on which control is obtained and up to the date that control ceases.

Specifically, a company controls an investee or subsidiary if, and only if, they have all of the following:

(a) power over the investee, i.e. the investor has existing rights which give it the ability to direct the relevant activities (the activities that significantly affect the investee's returns);

(b) exposure or rights to variable returns from involvement with the investee; and

(c) the ability to use power over the investee to affect the amount of the investor's returns.

When Arauco holds less than the majority of the voting rights in a company in which it participates, it nonetheless has the power over said company - when these voting rights are enough - to grant it in practice the ability to unilaterally direct said company's relevant activities. Arauco takes into account all facts and circumstances in order to assess if the voting rights in a company in which it participates are enough for granting it the power, including:

a) the size of the investor's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

b) potential voting rights held by the investor, other vote holders or other parties;

c) rights arising from other contractual arrangements; and

d) any additional facts and circumstances that indicate the investor has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders' meetings.

The Company will reevaluate whether or not it holds control of a company in which participates if the facts and circumstances indicate that changes have occurred in one or more of the three elements of control mentioned above.

Consolidation of an investee shall begin from the date the investor obtains control of the investee and cease when the investor loses control of the investee. An entity includes the income and expenses of an acquired or sold subsidiary in the consolidated financial statements from the date it gains control until the date when the entity ceases to control the subsidiary.

The profit or loss of each component of other comprehensive income is attributed to owners of the parent company and the non-controlling interest, as appropriate. Total comprehensive income is attributed to the owners of the parent company and non-controlling interests even if the results of the non-controlling interest have a deficit balance.

If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for transactions and other events in similar circumstances, appropriate adjustments are made to the consolidated financial statements of subsidiaries in order to ensure compliance with Arauco's accounting policies.

All intercompany transactions and unrealized gains and losses from subsidiaries have been fully eliminated from these consolidated financial statements and non-controlling interest is presented in the consolidated statement of financial position within equity.

The consolidated financial statements at the end of this period include the assets, liabilities, income and expenses of the subsidiaries shown in Note 13.

Certain consolidated subsidiaries have Brazilian real, Mexican pesos, Canadian dollars, Chilean pesos and Argentine pesos as their functional currencies. For consolidation purposes, the financial statements of those subsidiaries have been prepared in accordance with IFRS and translated as indicated in Note 1 (e) (ii).

The subsidiaries non-controlling interests in profits or losses and in the equity are presented separately in the consolidated statement of comprehensive income, in the consolidated statement of changes in equity and in the consolidated statement of financial position respectively.

d) Segments

Arauco has defined its reportable segments according to its business areas, based on the products and services sold to its customers. This definition is consistent with the management, resource allocation and performance assessment made by key personnel responsible for making relevant decisions related to the Company's operation. The personnel responsible for making such decisions is the Chief Executive Officer who is the highest authority for making decisions and is supported by the Vice-presidents of each segment.

Based on the aforementioned process, the Company has established reportable segments according to the following business units:

&nbsp;&nbsp;&nbsp;&nbsp;· Pulp

&nbsp;&nbsp;&nbsp;&nbsp;· Wood products

Refer to Note 24 for detailed financial information by reportable segment.

e) Functional currency

(i) Functional currency

All items in the financial statements of Arauco and each of its subsidiaries, associates and jointly controlled entities are measured using the currency of the primary economic environment in which each entity operates (the functional currency). The consolidated financial statements are presented in U.S. dollars, which is Arauco's functional and presentation currency.

(ii) Translation to the presentation currency of Arauco

For the purposes of presenting consolidated financial statements, assets and liabilities of Arauco's operations in a functional currency different from Arauco's are translated into U.S. dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange rate differences are recognized in other comprehensive income and accumulated in "Other reserves" within equity.

(iii) Foreign currency transactions

Transactions in currencies other than the functional currency are recognized at the exchange rates prevailing at the dates of the transactions. Profit or loss on transactions in currencies other than the functional currency resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognized in the consolidated statements of profit or loss, except those which are recorded in other comprehensive income and accumulated in equity such as cash flows hedging derivatives.

f) Cash and cash equivalents

Cash and cash equivalents include cash-on-hand, deposits held on demand at financial entities and other short-term highly liquid investments with an original maturity of three months or less and which are subject to an insignificant risk of changes in value.

g) Financial instruments

Financial assets

Initial classification

Arauco classifies its financial assets into the following categories: fair value through profit or loss and amortized cost.

The classification is based on the business model used to manage the assets and the characteristics of their contractual cash flows.

Management determines the classification of its financial assets at the time of their initial recognition.

(a) Financial assets at fair value through profit or loss: these instruments are initially measured at fair value. Net income and losses, including any income from interest or dividends, are registered in the profit or loss of the period.

Financial assets are classified in the category of financial assets at fair value through profit or loss when they are maintained for negotiation or designated in their initial registration as assets at fair value through profit or loss. A financial asset can be classified in this category if it is acquired mainly for the purposes of being sold in the short-term. Gain or losses of assets held for negotiations are registered in the consolidated statements of profit or loss, and the related interest is registered independently as financial income. Derivatives are classified as acquired for negotiation also unless they are designated as hedging instruments.

(b) Assets measured at amortized cost: they are initially registered at the fair value of the transaction, adding or subtracting the transaction costs that are directly attributable to the issuance of the financial asset or financial liability. The financial asset is maintained within a business model, the objective of which is to maintain financial assets to obtain contractual cash flows and the contractual conditions of the asset give rise, on specified dates, to cash flows that are solely payments of principal and interest ("SPPI") over the amount of the outstanding principal.

Subsequent measurement

Financial instruments are subsequently measured at fair value through profit or loss or amortized cost.

The classification is based on two criteria: i) the Company's business model for the management of financial instruments, and ii) whether the contractual cash flows related to the financial instruments represent "Solely Payments of Principal and Interest".

a) Financial assets at fair value through profit or loss: these instruments are subsequently measured at fair value. Net earnings and losses, including income from interest and dividends, are registered as profits or losses for the period. These instruments are held for negotiation, and they are mainly acquired to be sold in the short-term. Derivatives are also classified as held for negotiation, unless they are registered as hedging instruments. Financial instruments of this type are classified as other current and non-current financial assets. They are subsequently valuated by determining their fair value, registering changes in value in the consolidated statements of profit or loss, in the items of financial income or financial costs.

b) Financial assets measured at amortized cost: These instruments are subsequently measured at amortized cost minus accumulated amortizations, using the effective interest method and adjusted by loss allowance and volume discounts, in the case of financial assets. Financial income and expenses, foreign exchange income and losses, and impairment are registered as a result. Any earnings or losses due to initial or subsequent reductions of the value of the asset are registered in the statement of profit or loss of the period. Borrowings and receivables are non-derivative financial instruments with fixed or determinable payments not traded in any active market. They are registered at amortized cost, registering accrued conditions directly in profit or loss.

Arauco measures accumulated losses in a quantity equivalent to expected credit losses during the lifelong commitment. Expected credit losses are based on contractual cash flow differences based on the allowance of each contract and the cash flows that Arauco expects. The difference is then discounted based on an approximation of the asset's original effective interest rate. The asset's carrying value is reduced as the allowance is used, and the loss is recognized in sales expenses in the consolidated statements of profit or loss. When an account receivable cannot be collected, it is regularized against the allowance account for receivables. Subsequent recoveries of previously impaired amounts are recognized as a debit in distribution cost.

Derivative financial instruments are explained in Note 1 h).

Additionally, Arauco executed contracts relating to the sale of a portfolio of customer receivable, which are accounted for in accordance with IFRS 9 on Financial Instruments. The assigned accounts receivable are derecognized only when Arauco has transferred substantially all the related risks and rewards of their ownership.

To assess whether substantially all the risks and benefits of ownership have been transferred, Arauco considers, among other factors, credit risk, late payment risk, and foreign exchange risk. Collections related to the assigned portfolio of accounts receivable are presented in the consolidated statement of cash flows as part of operating activities.

Financial liabilities

Arauco classifies its financial liabilities as follows: fair value through profit or loss, derivatives designated as effective hedging instruments and amortized costs.

Management determines the classification of its financial liabilities upon initial recognition. Financial liabilities are derecognized when the obligation is cancelled, settled or expired. When an existing financial liability is replaced with another of the same provider under substantially different terms, or where the terms of an existing liability are substantially amended, such exchange or modification is treated as a write-off of the original liability, with a new liability being recognized, and the difference between the respective carrying amounts is recognized in the consolidated statement of profit or loss.

Financial liabilities are initially recognized at fair value, and in the case of borrowings, they include the costs directly attributable to the transaction. The subsequent measurement of the financial liabilities depends on their classification:

Financial liabilities at fair value through profit or loss

Financial liabilities are included in the category of financial liabilities at fair value through profit or loss when they are held for trading or originally designated at fair value through profit or loss. Income and losses from liabilities held for trading are recognized in profit or loss. This category includes non-designated derivatives for hedging accounting.

Financial liabilities at amortized cost

Other financial liabilities are subsequently valued at their amortized cost based on the effective interest rate method. The amortized cost is calculated taking into account any premium or acquisition discount and includes the costs of transactions that are an integral part of the effective interest rate. This category includes commercial accounts payable and other accounts payable, lease liabilities, as well as the borrowings included in other current and non-current financial liabilities.

h) Derivative financial instruments

(i) Derivative financial instruments - The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps, currency swaps and zero cost collar contracts. The Company's policy is to enter into derivatives contracts only for economic hedging purposes and no with speculation objectives.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured at fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss unless the derivative is designated as a hedging instrument and complies with hedge accounting requirements, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

(ii) Embedded derivatives

The Company assesses the existence of embedded derivatives in financial instrument contracts. Derivatives embedded in non-derivative host contracts are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the contracts are not measured at FVTPL as a whole. Arauco has determined that no embedded derivatives currently exist.

(iii) Hedge accounting

The Company designates certain hedging instruments as either fair value hedges or cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, Arauco documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

-Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

-Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, and is included in the Finance costs line item in the consolidated statement of profit or loss. Amounts previously recognized in other comprehensive income are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognized hedged item.

Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecasted transaction is ultimately recognized in profit or loss. When a forecasted transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

i) Inventories

Inventories are measured at the lower of cost or net realizable value. Cost is determined using the weighted average cost method.

The cost of finished and in process products includes the cost of raw materials, direct labor, other direct costs and manufacturing overhead expenses.

Initial costs of harvested wood are determined at fair value less cost of sale at the point of harvest.

Biological assets are transferred to inventories when forests are harvested.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

When market conditions result in the production costs of a product exceeding its net realizable value, the inventories are written-down to their net realizable value. This write-down also includes obsolescence amounts resulting of the terms and conditions of sale of the products, slow moving inventories and technical obsolescence.

Spare parts that will be consumed in a period of less than twelve months are presented in inventories and recognized as an expense when they are consumed.

j) Non-current assets held for sale

Arauco classifies certain property, plant and equipment, intangible assets, investments in associates and disposal groups (groups of assets to be sold together with their directly associated liabilities) as non-current assets held for sale which as of the date of the consolidated statements of financial position are the subject of active sale efforts which are estimated to be highly probable.

These assets or disposal groups are measured at the lower of the carrying amount or the fair value less the costs to sell, and are no longer depreciated or amortized from the time they are classified as non-current assets held for sale.

k) Business combinations

Arauco applies the acquisition method to account for a business combination. This method requires the identification of the acquirer, determination of the acquisition date, recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree, and recognition and measurement of goodwill or a gain from a bargain purchase. Identifiable assets acquired and liabilities assumed and any contingent liabilities in a business combination are initially measured at fair value at the acquisition date, except:

-deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 Income taxes and IAS 19 employee benefits, respectively;

-liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 3 at the acquisition date; and

-assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current assets held for sale and discontinued operations are measured in accordance with such standard.

Acquisition-related costs are accounted for as expenses when they are incurred, except for costs to issue debt or equity securities which are recognized in accordance with IAS 32 and IFRS 9.

A parent will present non-controlling interests in the consolidated statement of financial position within equity, separately from the equity of the owners of the parent company.

Changes in the ownership interest of a parent in its subsidiary that do not result in a loss of control are treated as equity transactions. Any difference between the amount by which non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the parent company. No adjustment is made to the carrying amount of goodwill, neither gains nor losses are recognized in the statement of profit or loss.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may initially be measured either at fair value or at the present ownership instruments' proportionate share of non-controlling interests, in the recognized amounts of the acquirer's identifiable net assets. The choice is made on a transaction-by-transaction basis.

Arauco measures the fair value of the acquired company in the business combination achieved in each stage ("step acquisition"), recognizing the effects of remeasurement of previously held equity in the acquiree in the consolidated statements of profit or loss.

If the initial accounting for a business combination is not completed by the end of the reporting period in which the combination occurs, Arauco reports preliminary amounts for the items for which the accounting is incomplete. During the measurement period (no more than one year), these preliminary amounts are retrospectively adjusted, or additional assets or liabilities are recognized to reflect new information about facts and circumstances that existed at the acquisition date, if known, would have affected the amounts recognized at that date.

Business combinations that are under common control transactions are accounted using as a reference the pooling of interest. Under this method, assets and liabilities related to the transaction carry over the previous carrying values. Any difference between assets and liabilities included in the consolidation and the consideration transferred, is accounted in equity.

l) Investments in associates and joint arrangements

Associates are entities over which Arauco exercises significant influence, but not control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Joint arrangement is defined as an entity over which there is joint control, which exists only when the decisions about strategic of activities, both financial and operational, require the unanimous consent of the parties sharing control.

Investments in joint arrangements are classified as a joint venture or as a joint operation. A joint operation is a joint arrangement in which the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement in which the parties that have joint control of the arrangement (i.e., participants in a joint venture) have rights to the net assets of the arrangement.

Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. Their carrying amount is increased or decreased to recognize the portion corresponding to the statement of profit or loss or to the statement of comprehensive income. Dividends received are recognized by deducting the amount received from the carrying amount of the investment. Arauco's investment in associates includes goodwill (both net of any accumulated impairment loss).

The investments in joint operations are recognized through consolidation of assets, liabilities and results of operations in relation to Arauco's ownership percentage.

If the acquisition cost is lower than the fair value of the net assets of the associate acquired, the difference is recognized directly in statement of profit or loss in line other gains (losses).

Investments in associates and joint ventures are presented in the consolidated statement of financial position in the line item "Investments accounted for using equity method".

If Arauco's share of losses of an associate or joint venture equals or exceeds its interest in the associate or joint venture, Arauco discontinues recognizing its share of further losses. After Arauco's carrying value in the investee is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that Arauco has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, Arauco resumes recognizing its share of those profits only after its share of the profits equals the share of losses not recognized.

m) Intangible assets other than goodwill

After initial recognition, intangible assets with finite useful lives are carried at cost less any accumulated amortization and impairment losses.

Amortization of an intangible asset with a finite useful life is allocated over the asset's useful life. Amortization begins when the asset is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

(i) Computer software

Computer software licenses are capitalized in terms of the costs incurred to acquire and make them compatible with existing software. These costs are amortized over the estimated useful lives of the software.

(ii) Water rights, rights of way and other rights

This item includes water rights, rights of way and other acquired rights recognized at historical cost which have indefinite useful lives as there is no foreseeable limit to the period over which these assets are expected to generate future cash flows. These rights are not amortized, but are tested for impairment at least annually, or when there is any indication that the assets might be impaired.

(iii) Customers relationships

Correspond to the valuation over the time of the established relationship with customers, from the sale of products and services through its sales team. These relations will materialize in sales orders, which generate revenue and cost of sales. The useful life has been determined to be 15 years.

n) Goodwill

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquired company, and the fair value of the acquirer's previously held equity interest in the acquired company (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the statements of profit or loss.

Goodwill is not amortized but tested for impairment on annual basis.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of impairment testing, goodwill in a business combination is allocated as of the acquisition date to the cash generating unit or a group of cash generating units expected to benefit from the synergies of the combination irrespective of whether other assets or liabilities of the acquired company are allocated to those units or group of units.

The goodwill generated on acquisitions of foreign companies, is expressed in the functional currency of such foreign company.

Goodwill recognized in subsidiaries Arauco Canada Ltd. and Arauco do Brasil S.A., generated on subsidiaries acquisitions whose functional currency is different from the functional currency of the parent company and presentation of these consolidated financial statements, are translated into U.S. dollars at the closing exchange rate.

o) Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment. The cost includes expenditures that are directly attributable to the acquisition of the assets.

Subsequent costs, such as improvements and replacement of components, are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to Arauco and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized from property, plant and equipment. All other repairs and maintenance costs are expensed in the period in which they are incurred.

Arauco capitalizes borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets as part of the cost of those assets, until the assets are ready for their intended use (See Note 12).

Depreciation is calculated by components using the straight-line method.

The useful lives of the items of property, plant and equipment is estimated according to the expected use of the assets. The residual values and useful lives of assets are reviewed and adjusted, if appropriate, annually.

p) Leases

Arauco applies IFRS 16 for recognizing leases in a manner consistent with contracts with similar features and akin circumstances.

At the beginning of a contract, Arauco assesses whether the contract is, or if it contains, a lease. A contract is, or contains, a lease if it transfers the right to control the use of a given asset for a certain period of time, in exchange for consideration.

As of the initial date for recording a lease, Arauco, as lessee, recognizes an asset by the right of use at cost.

The cost of the asset for right of use comprises:

- The amount of the initial measurement of the lease liability. This measurement is at present value of the payments for leases that have not been disbursed as of that date. Payments for leases are discounted using the incremental interest rate for financial borrowings;

- Payments for leases performed prior to or as of the initiation date, minus the lease incentives that have been received;

- The initial direct costs incurred by the lessee; and

- An estimation of the costs to be incurred by the lessee when dismantling and eliminating the underlying asset, restoring the location where the same is located, or restoring the underlying asset to the condition required under the terms and conditions of the lease, unless such costs are incurred in order to produce inventories. The lessee assumes obligations stemming from such costs either at the commencement date, or as a result of having used the underlying asset during a specific period.

After the initial recognition date, Arauco, as lessee, recognizes its asset for right of use by applying the cost model, minus the accumulated depreciation and impairment losses, and adjusted for remeasurement of the liability for lease.

At the beginning, Arauco in the capacity of lessee, recognizes the lease liability at present value of the lease payments that have not been disbursed as of that date. Lease payments are discounted using the incremental interest rate for financial borrowings.

After the initial recognition date, Arauco, as lessee, recognizes a liability for leases by increasing the book value, so as to reflect the interest over the liability for lease, reducing the amount in order to reflect the payments for leases that have been performed and once again recognizing the book value, so as to reflect the remeasurement and also to reflect the essential fixed payments for leases that have been revised.

Arauco presents the assets by right of use in the consolidated statement of financial position and are further disclosed in Note 8. Likewise, lease liabilities are presented in the consolidated statement of financial position and further disclosed in Note 23.

IFRS 16 maintains substantially the accounting requirements of the lessor from IAS 17. Therefore, Arauco has continued to classify its leases as operational or financial, as the case may be.

Income from operating leases in which Arauco is the lessor are recognized on a straight-line basis during the term of the lease. Initial direct costs are added to the book value of the underlying asset and are recognized as expenses during the term of the lease on the same basis as the lease income. Leased assets are included within the statement of financial position, in property, plant and equipment. Arauco did not make adjustments with respect to assets that maintains as a lessor, as a result of IFRS 16 adoption.

When assets are leased under a financial lease, the present value of lease payments are recognized as financial accounts receivable. The difference between the gross receivable and the present value of such amount, is recognized as financial return on capital.

Arauco evaluates the economic nature of the contracts that grant the right to use certain assets, for the purposes of determining the existence of implied leases. In these cases, the Company separates, at the beginning of the contract and based on its relative reasonable values, payments and considerations associated with the lease, from the rest of the elements incorporated into the contract.

q) Biological assets

IAS 41 requires that biological assets, such as standing trees, are measured at fair value less cost to sell in the statement of financial position. Forestry plantations are accounted for at fair value less costs to sell, based on the presumption that fair values of these assets can be measured reliably.

The measurement of the fair value of the biological assets is determined using a discounted cash flow model. Our cash flow projections include significant judgments and assumptions relating to discount rates, estimated growth of the forests and sales margins. This valuation is performed on the basis of each identifiable farm block and for each type of tree.

Biological assets shown as current assets correspond to those forestry plantations that will be harvested in the short-term.

Biological growth and changes in fair value of forestry plantations are recognized in the line item "Other income" in the consolidated statements of profit or loss.

r) Income taxes

The tax liabilities are recognized in the consolidated financial statements based on the determination of taxable income for the year and calculated using the tax rates in force in the countries where Arauco operates.

Deferred income tax is recognized using liability method, on the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated annual accounts. Deferred income tax is determined using tax rates contained in laws adopted as of the date of the financial statements and that are expected to be applicable when the related deferred tax asset is realized, or the deferred income tax liability is settled.

Deferred taxes are recognized in accordance with the standards established in IAS 12 - Income Tax.

The goodwill arising on business combinations does not give rise to deferred tax.

The deferred tax assets and tax credits are generally recognized for all deductible temporary differences to the extent that it is probable that future taxable profit will be available against which those deductible temporary differences can be utilized.

s) Provisions

Provisions are recognized when the Company has a present obligation, legal or constructive, as a result of past events, under which, it is probable that an outflow of resources will be required to settle the obligation; and when a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period.

t) Other non-financial assets and liabilities

Non-financial assets are recognized when it is probable that the related economic benefits will flow to the entity and their cost can be measured reliably.

Non-financial liabilities are recognized when a legal or constructive obligation exists as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation, and the amount can be measured reliably.

u) Revenue recognition

Revenues are valued at fair value of the consideration received or to be received, derived from them. Arauco analyses and takes under consideration all relevant facts and circumstances to apply the five-step model established under IFRS 15 to customer contracts: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue. Additionally, Arauco evaluates the incremental costs of obtaining a contract and the costs incurred to comply with a contract. Arauco recognizes revenues when the steps established in IFRS have been satisfactorily complied with.

Accounts receivable are recognized when control over goods or services has been transferred to the customer, because at this point of the time collection is unconditional and the passage of time is only needed to receive payment.

(i) Revenue recognition from the sale of goods

Revenue from the sale of goods is recognized when Arauco has transferred to the buyer the significant risks and rewards of ownership of the committed goods, when the amount of revenue can be reliably measured, when Arauco does not retain any managerial involvement over the goods sold and when it is probable that the economic benefits associated with the transaction will flow to Arauco and the costs incurred in respect of the transaction can be measured reliably. Revenue from the sale of goods are recognized when there is no obligation unsatisfied that could affect the customer's acceptance of the product. The delivery is effective when the products are sent to the specific location, the risks of obsolescence and loss have been transferred to the customer and when Arauco has objective evidence that all acceptance criteria have been satisfied.

Sales are recognized in terms of the price agreed to in the sales contract, less any volume discounts and estimated product returns at the date of the sale. There is no significant financing component given that receivables from sales are collected within a short period, which is in line with market practices.

The structure for recognizing revenue from export sales is based on the 2010 Incoterms, which are the official rules for the interpretation of commercial terms issued by the International Chamber of Commerce.

The main Incoterms used by Arauco are the following:

"CFR (Cost and freight)", where the company bears all costs including main transportation, until the products arrives at its port of destination. The risk is transferred to the purchaser once the products have been loaded onto the vessel, in the country of origin.

"CIF (Cost Insurance & Freight)", where the Company organizes and pays for external freight services and some other expenses. Arauco is no longer responsible for the products once they have been delivered to the ocean carrier company.

(ii) Revenue recognition from rendering of services

Revenue from the rendering of services is recognized as long as the performance obligation have been satisfied.

Revenue is recognized considering the stage of completion of the transaction at the date of the reporting period, when Arauco has the enforceable right of payment from the rendering of the services.

There is no significant financing component, given that sales are made with a reduced average collection period, which is in line with market practice.

Arauco mainly provides power supply services which are transacted principally in the spot market of the Sistema Eléctrico Nacional (SEN) ("National Electrical System"). According to current regulations, the prices on that market called "Marginal Costs" are calculated by the Coordinador Eléctrico Nacional (CEN) ("National Electrical Coordinator") and are generally recognized in the period in which the services are rendered.

Electrical power is generated as a by-product of the pulp and wood process and is a complementary business to it, which is initially supplied to the group's subsidiaries and any surplus is sold to the SEN.

Arauco provides other non-core services such as port services and pest control whose revenues are derived from fixed price service contracts are recognized considering the stage of completion of the services rendered at the date of reporting, generally during the period of the service contract on a straight-line basis over the term of the contract.

Revenues from reportable segments mentioned in Note 24 are measured in accordance with the policies indicated in the preceding paragraphs.

Revenues from inter-segment sales (which are made at market prices) are eliminated in the consolidated financial statements.

v) Minimum dividend

The statutes of the Company provide that for the purposes of the annual distribution of the net income of each year, it will be up to the Ordinary Shareholders' Meeting annually to determine the part of said profits that will be distributed as a dividend to the shareholders. Such determination will be made by the Board without being subject to the minimum of 30% established in article No. 79 of the Chilean Corporations Law No. 18,046, on Public Limited Companies, and may agree to the distribution of a lower percentage.

At the board meeting held on September 24, 2024, it was agreed to modify the dividend policy, establishing that an amount equivalent to 30% of the distributable net profit for the fiscal years 2024, 2025 and 2026, will be distributed annually. For subsequent years, an amount equivalent to 40% of the distributable net income for each fiscal year will be distributed as dividends. Nevertheless, the Board of Directors may decide to distribute and pay dividends to the shareholders, to the extent that it expects the year to finalize with positive results and that the Company's liquidity allows such distribution and payment.

At the board meeting held on October 24, 2025, an amendment to the dividend policy was approved, establishing that if the Company exercises its option to defer the payment of interest on the Series "AG" Bonds, issued and placed in the local market on the same date, the Company may not declare or pay dividends while any deferred interest remains outstanding.

w) Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to owners of the parent company by the weighted average number of ordinary shares outstanding during the period, excluding the average number of shares in the Company held by a subsidiary, if such circumstance exists. Arauco has not performed any type of transaction with a potential dilutive effect that would cause diluted earnings per share to be different from basic earnings per share.

x) Impairment

Non-financial assets

The recoverable amount of property, plant and equipment and other long-term assets with finite useful lives are measured whenever there are any circumstances indicating that the assets have to recognize an impairment loss. Among the circumstances to consider as evidence of impairment are significant declines in the assets' market value, significant adverse changes in the technological environment, obsolescence or physical damages of assets and changes in the manner in which the asset is used or expected to be used). Arauco evaluates at the end of each reporting period whether there is any evidence of the indications above mentioned.

A previously recognized impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount however a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

For the purposes of assessing impairment losses, assets are grouped at the lowest level for which there is identifiable cash flows separately for each cash-generating unit. Non-financial assets, other than goodwill, which had recognized an impairment loss, are reviewed at the end of each reporting period whether there are any circumstances indicating that an impairment loss previously recognized may no longer exist or has decreased.

"Cash-generating units" are the smallest identifiable groups of those cash inflows that are largely independent of the cash inflow from other assets or groups of assets.

Goodwill

Goodwill and intangible assets with indefinite useful life are tested annually for impairment or whenever circumstances indicate it. The recoverable amount of an intangible asset is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognized whenever the carrying amount exceeds the recoverable amount.

A cash-generating unit, for which goodwill has been allocated, is tested for impairment annually or more frequently when there are circumstances indicating that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to other assets pro rata based on the carrying amount of each asset in the unit. Any impairment loss of goodwill is recognized directly in the consolidated statement of profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

Goodwill is allocated to cash-generating units for impairment testing purposes. The allocation is made between cash-generating units or groups of cash generating units expected to benefit from the synergies of the combination.

Financial assets

At the end of each reporting period, an assessment is performed in order to identify whether there is any objective evidence that a financial asset or a group of financial assets may have been impaired.

An allowance for doubtful accounts is established based on a measurement of expected losses using a simplified approach.

The allowance for doubtful accounts is measured as the difference between the carrying amount of receivables and the present value of estimated future cash flows. The carrying amount of the receivable is reduced through the use of the allowance. If the impairment loss decreases in later periods, it is reversed either directly or by adjusting the provision for doubtful accounts, with effect in profit or loss.

y) Employee benefits

Arauco constitutes labor obligations for severance payable in all circumstances for certain of its employees with at least 5 years of work in the Company, based on the terms of the staff's collective and individual bargaining agreements.

The related provision is an estimate of the years of service to be recognized as a future labor obligation liability, in accordance with contracts between Arauco and its employees and pursuant to actuarial valuation criteria for this type of liability. This post-employment benefit is considered a defined benefit plan.

The main factors considered for calculating the actuarial value of severance obligation for years of service are employee turnover, salary increases and life expectancy of the workers included in this benefit.

Actuarial gains and losses are recognized in other comprehensive income in the year they are incurred.

These obligations are related to post-employee benefits in accordance with current standards.

z) Employee Vacations

Arauco recognizes the expense for employee vacation according to labor legislation in each country on an accrual basis.

This obligation is presented in line item "Trade and other current payables" in the consolidated statements of financial position.

aa) Recent accounting pronouncements

a) Standards, interpretations and amendments that are mandatory for the first time for annual periods beginning on January 1, 2025:

---

| | | |
|:---|:---|:---|
| Amendments and<br> improvements | Content | Mandatory application for annual periods beginning on or after |
| IAS 21<br>| Lack of Exchangeability<br> An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose.  | January 1, 2025<br>|

---

The adoption of the standards, amendments and interpretations described in the table above have not had a significant impact on Arauco's consolidated financial statements during its initial application period.

b) Standards, interpretations and amendments, the application of which is not yet mandatory, which have not been adopted in advance:

---

| | | |
|:---|:---|:---|
| Standards, amendments and<br>improvements | Content | Mandatory application<br> for annual periods beginning<br> on or after |
| IFRS 9 and IFRS 7 | Classification and Measurement of Financial Instruments | January 1, 2026 |
|  | Clarify the requirements, give the guidance, add new disclosures for certain instruments. |  |
|  | Contracts Referencing Nature Dependent Electricity |  |
|  | Clarify the application and disclosure requirements; permitting hedge accounting if these contracts are used as hedging instruments. |  |
| IFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 |
|  | This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. |  |
| IFRS 19 | Subsidiaries without Public Accountability: Disclosures | January 1, 2027 |
|  | An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19.  |  |
| IAS 21 | Translation to a Hyperinflationary Presentation Currency | January 1, 2027 |
|  | These narrow-scope specify the translation procedures for an entity whose presentation currency is that of a hyperinflationary economy. |  |

---

Arauco estimates that the adoption of the standards, amendments and interpretations described in the table above will not have a significant impact on Arauco's consolidated financial statements during its initial application period, except for the new IFRS 18 standard that will modify the actual presentation of the Income Statement,

and we are currently evaluating any significant impacts.

#### NOTE 2. ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES
Changes to accounting policies

As of December 31, 2025, there had not been significant changes in the accounting policies with respect to the 2024 financial year.

Changes to accounting estimates

As of December 31, 2025, there had been no changes in the methodologies for calculating the accounting estimates with respect to the 2024 financial year.

#### NOTE 3. DISCLOSURE OF OTHER INFORMATION
a) Disclosure of information on issued capital

As of December 31, 2025 and 2024, the shareholders composition according to the amount of shares owned was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
| Shareholders | Shares | % | Shares | % |
| Empresas Copec S.A. | 131893675 | 99.99991584% | 125042019 | 99.99991603% |
| AntarChile S.A. | 111 | 0.00008416% | 105 | 0.00008397% |
|  | 131893786 | **100.00000000** % | 125042124 | **100.00000000** % |

---

At the date of these consolidated financial statements the share capital of Arauco was ThU.S.$1,553,618.

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Description of shares by type of capital in ordinary shares | 100% of Capital corresponds to <br>ordinary shares | 100% of Capital corresponds to <br>ordinary shares |
| Number of authorized shares by type of capital in ordinary Shares  | 131893786 | 125042124 |
| Nominal value of shares by type of capital in ordinary shares  | U.S.$11.7793 per share | U.S.$8.8260 per share |
| Amount of capital in shares by type of ordinary shares that constitute capital  | ThU.S.$1,553,618 | ThU.S.$1,103,618 |
| Number of shares issued and fully paid by type of capital in ordinary shares  | 131893786 | 125042124 |

---

b) Dividends paid

On May 7, 2025, a definitive dividend of ThU.S.$112,287 was paid in accordance with the dividend policy for the distribution of 30% of the distributable net profit, after deducting the payment made in December 2024 mentioned in the following paragraph.

On December 10, 2024, a provisional dividend of ThU.S.$94,397 was paid against the retained earnings from the profits of the year 2024.

On May 10, 2023, a definitive dividend of ThU.S.$279,622 was paid according to the extraordinary dividend policy distribution of 50% of the distributable net profit after discounting the payment made in December 2022, which is detailed in the following paragraph.

The ThU.S.$8,449 million presented in the consolidated statement of changes in equity corresponds to the minimum dividend provision for the 2025 fiscal year. The amount of ThU.S.$206,684 presented in the consolidated statement of changes in equity for the year ended December 31, 2024, contains the minimum dividend provision. For the year ended December 31, 2023 there was no minimum dividend provision for the 2023 losses.

In the consolidated statement of cash flows, the dividends paid line shows an amount of ThU.S.$114,622 for the year ended December 31, 2025 (ThU.S.$94,637 and ThU.S.$282,728 for the years ended December 31, 2024 and 2023, respectively), of which ThU.S.$114,199 (ThU.S.$94,397 and ThU.S.$279,622 for the years ended December 31, 2024 and 2023, respectively) correspond to the dividends payment made to the parent company.

See Note 26 for details.

---

| | |
|:---|:---|
| Dividends paid detail, ordinary shares |  |
| Dividends paid  | Definitive dividend  |
| Classes of shares for which there are dividends paid  | Ordinary shares without series  |
| Date of dividends paid  | 05-07-2025 |
| Amount of dividends  | ThU.S.$112,287  |
| Number of shares on which pay dividends  | 125042124 |
| Dividend per shares  | U.S.$0.897997 |

---

---

| | |
|:---|:---|
| Dividends paid detail, ordinary shares |  |
| Dividends paid  | Provisional dividend  |
| Classes of shares for which there are dividends paid  | Ordinary shares without series  |
| Date of dividends paid  | 12-10-2024 |
| Amount of dividends  | ThU.S.$94,397  |
| Number of shares on which pay dividends  | 120474350 |
| Dividend per shares  | U.S.$0.783542 |

---

---

| | |
|:---|:---|
| Dividends paid detail, ordinary shares |  |
| Dividends paid  | Definitive dividend  |
| Classes of shares for which there are dividends paid  | Ordinary shares without series  |
| Date of dividends paid  | 05-10-2023 |
| Amount of dividends  | ThU.S.$279,622  |
| Number of shares on which pay dividends  | 120474350 |
| Dividend per shares  | U.S.$2.321007 |

---

c) Disclosure of information on reserves

Other reserves comprise reserves of exchange differences on translation, reserves of cash flow hedges and other reserves. Arauco does not have any restrictions associated with these reserves.

Reserves of exchange differences on translation

Reserves of exchange differences on translation correspond to exchange differences of Arauco's subsidiaries whose functional currency is other than Arauco's presentation currency.

Reserves of cash flow hedges

The hedging reserve corresponds to the part of the net gains or losses of derivatives financial instruments that qualify as cash flow hedges, in force in Arauco at the end of each period/fiscal year.

Reserve of actuarial losses in defined benefit plans

This corresponds to changes in the present value of the obligation for defined benefits resulting from experience adjustments (the effect of the differences between the previous actuarial assumptions and the events that occurred within the context of the plan) and the effects of the changes in the actuarial assumptions.

Other reserves

This mainly corresponds to the share of legal reserves and other comprehensive income of investments in associates and joint agreements.

d) Other items in the consolidated statements of profit or loss

The table below sets forth other income, other expenses, finance income, finance costs and share of profit (loss) of associates and joint ventures for the years ended December 31, 2025, 2024 and 2023 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | January - December | January - December | January - December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Classes of Other Income |  |  |  |
| Total Other Income | 324023 | 597061 | 573017 |
| Gain from changes in fair value of biological assets (Note 20) (1) | 204646 | 159021 | 264477 |
| Net income from insurance compensation | 3819 | 17336 | 204966 |
| Revenue from export promotion | 1312 | 1099 | 943 |
| Lease income | 5756 | 4960 | 10158 |
| Gain on sales of assets | 33153 | 21040 | 27755 |
| Rights of way | 3620 | 5 | 488 |
| Compensations received | 1584 | 43 | 7285 |
| Gain on sales of subsidiaries and associates | -  | 354067 | - |
| Reversal of impairment of property, plants and equipment | 11502 | 7248 | 6886 |
| Reimbursement provisions (legal and others) | 11468 | 3680 | 12322 |
| Gain from assignment of contracts | 17813 | - | - |
| Other operating income | 29350 | 28562 | 37737 |
| Classes of Other Expenses by function |  |  |  |
| Total Other Expenses by function | (130280) | (212213) | (480336) |
| Depreciation for leased assets  | (2656) | (2814) | (1494) |
| Provision legal expenses | (7822) | (12483) | (14398) |
| Impairment provision for property, plant and equipment, provision for inventory obsolescence, withdrawals and others | (23832) | (42583) | (110559) |
| Operating expenses related to restructuring or from plants stoppage or closed | (24238) | (44181) | (236525) |
| Expenses related to projects | (7174) | (11399) | (13975) |
| Loss by leasses | (942) | (747) | - |
| Loss of asset sales | (7821) | (11497) | (12389) |
| Loss and repair of assets | (5913) | (3149) | (11076) |
| Loss of forest due to fires | (14675) | (24918) | (25101) |
| Other taxes | (24687) | (34691) | (20977) |
| Research and development expenses | (1701) | (1605) | (3939) |
| Fines, readjustments and interest | (2370) | (695) | (1146) |
| Loss on sale of associates | -  | (20) | -  |
| Loss of tax credits | (135) | (2195) | (4287) |
| Other expenses | (6314) | (19236) | (24470) |
| Classes of Finance Income |  |  |  |
| Total Finance Income | 62560 | 66355 | 131666 |
| Finance income by mutual funds - term deposits  | 40808 | 44881 | 113522 |
| Finance income resulting from derivatives | -  | 3 | 8 |
| Other finance income | 21752 | 21471 | 18136 |
| Classes of Finance Costs |  |  |  |
| Total Finance Costs | (409724) | (397923) | (373496) |
| Interest expense, Bank borrowings | (68006) | (85860) | (78753) |
| Interest expense, Bonds | (196494) | (204570) | (214079) |
| Interest expense resulting from derivatives | (51990) | (41066) | (26800) |
| Interest expense for right-of-use (1) | (48884) | (29991) | (19995) |
| Other finance costs | (44350) | (36436) | (33869) |
| Share of profit (loss) of associates and joint ventures accounted for using equity method |  |  |  |
| Total  | (3865) | (45792) | 7709 |
| Investments in associates (2) | (245) | (22650) | 3990 |
| Investments in joint ventures | (3620) | (23142) | 3719 |

---

(1) In 2024, includes the effect of changes in fair value of plantations and interest expense for right-of-use assets from Brazilian companies that were previously classified as held for sale and sold during the period, through the sale date.

(2) In 2024, includes the share of the profit of the associate Forestal Vale do Corisco S.A. that were previously classified as held for sale and sold during the period, through the sale date.

The analysis of expenses by nature contained in these consolidated financial statements is presented below:

---

| | | | |
|:---|:---|:---|:---|
|  | January - December | January - December | January - December |
|  | 2025 | 2024 | 2023 |
| **Cost of sales** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Timber | 985301 | 963721 | 1068662 |
| Forestry labor costs and other services | 635344 | 702315 | 692518 |
| Depreciation and amortization | 591693 | 584343 | 535244 |
| Depreciation for right of use | 32025 | 35005 | 28082 |
| Maintenance costs | 326255 | 355733 | 355389 |
| Chemical costs | 655057 | 662732 | 649413 |
| Sawmill costs | 111702 | 122927 | 122748 |
| Other raw materials | 269558 | 236098 | 285828 |
| Other indirect costs | 223180 | 222550 | 233903 |
| Energy and fuel | 246757 | 276517 | 275732 |
| Cost of electricity | 51987 | 50587 | 65191 |
| Staff expenses | 418002 | 421621 | 431385 |
| Total | 4546861 | 4634149 | 4744095 |

---

Total amount is comprised of the cost of inventory sales for ThU.S.$4,422,849 for the year ended December 31, 2025 (ThU.S.$4,522,430 and ThU.S.$4,616,212 for the years ended December 31, 2024 and 2023, respectively) and the cost of rendering services for ThU.S.$124,012 for the year ended December 31, 2025 (ThU.S.$111,719 and ThU.S.$127,883 for the years ended December 31, 2024 and 2023, respectively).

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| **Distribution cost** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Selling costs | **32279**  | 35502 | 41966 |
| Commissions | 16974 | 17070 | 15400 |
| Insurance | 5797 | 6584 | 7186 |
| Provision for doubtful accounts  | 545 | 1098 | 3094 |
| Other selling costs | 8963 | 10750 | 16286 |
| Shipping and freight costs | 645455 | 659875 | 651073 |
| Port services | 65855 | 70717 | 61802 |
| Freights | 514737 | 530334 | 528218 |
| Depreciation for right of use | 1647 | 1068 | 1184 |
| Shipping internment, warehousing, stowage, customs and other costs  | 63216 | 57756 | 59869 |
| Total | 677734 | 695377 | 693039 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| **Administrative expenses** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Wages and salaries | 223522 | 219046 | 245822 |
| Marketing, advertising, promotion and publications expenses | 14140 | 14516 | 14542 |
| Insurances | 40645 | 49359 | 54173 |
| Depreciation and amortization | 41997 | 43716 | 43075 |
| Depreciation for right of use | 8543 | 7110 | 7361 |
| Computer services | 34325 | 29836 | 37859 |
| Lease of offices, other property and vehicles | 6704 | 7323 | 7854 |
| Donations, contributions, scholarships | 9152 | 9010 | 10983 |
| Fees (legal and technical advisors) | 35792 | 35817 | 35831 |
| Property taxes, city permits and rights | 25728 | 21225 | 32639 |
| Cleaning services, security services and transportation | 23080 | 23329 | 28381 |
| Third-party variable services (manoeuvres, logistics) | 34536 | 41030 | 38537 |
| Basic services (electricity, telephone, water) | 7338 | 6768 | 7323 |
| Maintenance and repair | 4978 | 5932 | 6933 |
| Seminars, courses, training materials | 2265 | 3117 | 2637 |
| Travels, clothing and safety equipment, environmental expenses, audits and others | 48085 | 47893 | 50376 |
| Total | 560830 | 565027 | 624326 |

---

#### NOTE 4. INVENTORIES

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Components of inventory | ThU.S.$ | ThU.S.$ |
| Raw materials | 169449 | 166695 |
| Production supplies | 226114 | 209201 |
| Work in progress | 75497 | 82565 |
| Finished goods | 764939 | 762086 |
| Spare parts | 280640 | 235713 |
| Total inventories | **1516639**  | **1456260**  |

---

Inventories are subject to adjustments for obsolescence and are evaluated to ensure they are recorded at the lower between cost and net realizable value. As of December 31, 2025, inventories were reduced by ThU.S.$5,457 (increased by ThU.S.$16,414 as of December 31, 2024) as a result of write-downs to net realizable value. Such write-downs were recognized in cost of sales in both periods.

As of December 31, 2025, the amount of obsolescence provision and net realizable value is ThU.S.$84,217 (ThU.S.$107,003 as of December 31, 2024), as a consequence of the foregoing, a net increase of inventories was recognized of ThU.S.$22,786 (lower provision of ThU.S.$3,728 as of December 31, 2024).

For the year ended December 31, 2025, there were inventory write-offs of ThU.S.$6,050 (ThU.S.$2,200 and ThU.S.$3,614 for the years ended December 31, 2024 and 2023, respectively) which are presented in the consolidated statements of profit or loss within cost of sales.

As of the date of these consolidated financial statements, no inventories were pledged as security.

#### NOTE 5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, bank checking account balances, time deposits and mutual funds. These are short-term highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

The investment objective of time deposits is to maximize the amounts of cash surpluses in the short-term. These instruments are permitted under Arauco's Investment Policy which allows investing in fixed income securities. These instruments have a maturity of less than three months from the date of acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Arauco invests in local and international mutual funds in order to maximize the returns of cash surpluses denominated in Chilean pesos or in foreign currencies such as U.S. dollars or Euros. These instruments are permitted under Arauco's Investment Policy.

As of the date of these consolidated financial statements, there are no amounts of cash and cash equivalents with restrictions on use.

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Components of Cash and Cash Equivalents | ThU.S.$ | ThU.S.$ |
| Cash on hand | 57 | 47 |
| Balances with Banks | 805428 | 642064 |
| Short-term deposits | 426269 | 359150 |
| Mutual funds | 52299 | 70299 |
| Total | **1284053**  | **1071560**  |

---

The risk classification of the Company's mutual funds as of December 31, 2025 and 2024 is shown below.

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| AAAfm | 620 | 2270 |
| AAfm | 10317 | 60254 |
| No classification (\*) | 41362 | 7775 |
| Total Mutual Funds | 52299 | 70299 |

---

(\*) Correspond to mutual funds whose local classification applies a methodology different from that used for the other mutual funds in which the Company invests. Nevertheless, these funds meet the definition of cash equivalents, as they are subject to an insignificant risk of changes in value.

Changes in financial liabilities

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 |
|  | Bank<br> borrowings  | Hedging<br> liabilities | Bonds and<br> promissory<br> notes | Other<br> financial<br> liabilities | Other financial<br> liabilities, Total |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance January 1 | **1151023**  | **201918**  | **4717676**  | **-**  | **6070617**  |
| Cash flows |  |  |  |  |  |
| (+) Borrowings obtained  | 961136 | - | 1343803 | - | 2304939 |
| (-) Borrowings paid  | (850800) | 1784 | (45750) | - | (894766) |
| (-) Commissions paid  | (87202) | - | (64) | - | (87266) |
| (-) Interest paid  | (70078) | (48782) | (210690) | (1429) | (330979) |
| (-) Obtention (payment) of collateral  | - | - | - | 69160 | 69160 |
| (+) Accrued interest | 77363 | 48782 | 224724 | 1429 | **352298**  |
| (+/-) Exchange rate difference | 56988 | - | 278252 | - | **335240**  |
| (+/-) Changes in fair value | - | (183824) | - | - | **(183824)**  |
| (+/-) Other movements | 17736 | - | (5397) | - | **12339**  |
| Closing balance | **1256166**  | **19878**  | **6302554**  | **69160**  | **7647758**  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | Bank<br> borrowings  | Hedging<br> liabilities | Bonds and<br> promissory<br> notes | Other financial<br> liabilities, Total |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance January 1 | **1499051**  | **108004**  | **4997038**  | **6604093**  |
| Cash flows |  |  |  |  |
| (+) Borrowings obtained  | 1303663  | -  | 391862  | 1695525 |
| (-) Borrowings paid  | (1582810) | (6748) | (543340) | (2132898) |
| (+/-) Commissions (discounts) of issue  | -  | - | 11163 | 11163 |
| (-) Interest paid  | (87699) | (38969) | (206200) | (332868) |
| (+) Accrued interest | 83075 | 40414 | 197941 | **321430**  |
| (+/-) Exchange rate difference | (24083) | - | (135388) | **(159471)**  |
| (+/-) Changes in fair value | - | 99217 | - | **99217**  |
| (+/-) Other movements (\*) | (40174) | - | 4600 | **(35574)**  |
| Closing balance  | **1151023**  | **201918**  | **4717676**  | **6070617**  |

---

(\*): In 2024, this line includes mainly the exchange difference on translation mainly from Brazilian companies.

---

| | | |
|:---|:---|:---|
|  | Lease liabilities | Lease liabilities |
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Opening balance January 1 | **727990**  | **559382**  |
| Cash flows |  |  |
| (-) Borrowings paid  | (101832) | (82059) |
| (-) Interest paid  | (48687) | (29366) |
| (+) Accrued interest | 48687 | 29490 |
| (+/-) Inflation adjustment | - | (51) |
| (+/-) Exchange rate difference | 72527 | (5071) |
| (+) Increase due to new leases liabilities | 340622 | 361421 |
| (+/-) Other movements (\*) | (24247) | (105756) |
| Closing balance  | **1015060**  | **727990**  |

---

(\*): In 2024, this line includes mainly the exchange difference on translation mainly from Brazilian companies.

#### NOTE 6. INCOME TAXES
The tax rates applicable in the countries in which Arauco operates are 27% in Chile, 35% in Argentina, 30% in Mexico, 34% in Brazil, 25% in Uruguay and 21% in the United States (federal tax rate).

Deferred Tax Assets

The following table sets forth the deferred tax assets as of the dates indicated:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Deferred tax assets | ThU.S.$ | ThU.S.$ |
| Deferred tax assets relating to liabilities provisions | 11973 | 11125 |
| Deferred tax assets relating to post-employment benefits | 26018 | 23063 |
| Deferred tax assets relating to property, plant and equipment | 122533 | 89655 |
| Deferred tax assets relating to impairment provision | 7260 | 5672 |
| Deferred tax assets relating to financial instruments | 84304 | 70760 |
| Deferred tax assets relating to tax loss carry forward | 240892 | 252202 |
| Deferred tax assets relating to biological assets | - | 4806 |
| Deferred tax assets relating to inventories | 20252 | 27374 |
| Deferred tax assets relating to provisions for income | 41364 | 35889 |
| Deferred tax assets relating to allowance for doubtful accounts | 2709 | 3160 |
| Deferred tax assets relating to intangible revaluation | 397 | 215 |
| Deferred tax assets relating to other deductible temporary differences | 65147 | 73791 |
| Total deferred tax assets | **622849**  | **597712**  |
| Offsetting presentation | (521345) | (524303) |
| Net effect | **101504**  | **73409**  |

---

Certain subsidiaries of Arauco mainly in Chile and Brazil, as of the date of these consolidated financial statements, present tax losses for which we estimate that, given the projection of future profits, will allow the recovery of the deferred tax assets recorded. The total amount of these tax losses is ThU.S.$874,360 (ThU.S.$928,974 as of December 31, 2024).

In addition, as of the closing date of these consolidated financial statements, there are ThU.S.$118,725 (ThU.S.$129,300 as of December 31, 2024) of non-recoverable tax losses mainly from subsidiaries in the United States. The estimated recovery period exceeds the expiry date of such tax losses.

Deferred tax liabilities

The following table sets forth the deferred tax liabilities as of the dates indicated:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Deferred tax liabilities | ThU.S.$ | ThU.S.$ |
| Deferred tax liabilities relating to property, plant and equipment | 1397529 | 1374164 |
| Deferred tax liabilities relating to financial instruments | 42384 | 18887 |
| Deferred tax liabilities relating to biological assets | 481293 | 469770 |
| Deferred tax liabilities relating to inventory | 60729 | 56101 |
| Deferred tax liabilities relating to prepaid expenses | 37378 | 34889 |
| Deferred tax liabilities relating to intangible | 5419 | 6089 |
| Deferred tax liabilities relating to other taxable temporary differences | 46670 | 33915 |
| Total deferred tax liabilities | **2071402**  | **1993815**  |
| Offsetting presentation | (521345) | (524303) |
| Net effect | **1550057**  | **1469512**  |

---

The effect of this year in deferred tax liabilities related to financial hedging instruments

corresponds to a debit of ThU.S.$123,732 for the year ended December 31, 2025 (debit of ThU.S.$6,075 and credit of ThU.S.$19,610 for the years ended December 31, 2024 and 2023, respectively), which is presented in the consolidated statement of comprehensive income and net in reserves for cash flow hedges in the consolidated statement of changes in equity.

Reconciliation of deferred tax assets and liabilities

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Opening<br> balance<br> 01-01-2025 | Deferred tax <br>income<br> (expenses) | Deferred tax of<br> items<br> charged<br> to equity | Increase<br> (decrease)<br> net exchange<br> differences | Closing<br> balance<br> 12-31-2025 |
| Deferred tax assets | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax assets relating to liabilities provisions | 11125 | 541 | - | 307 | 11973 |
| Deferred tax assets relating to post-employment benefits | 23063 | 4118 | (1254) | 91 | 26018 |
| Deferred tax assets relating to property, plant and equipment | 89655 | 32815 | - | 63 | 122533 |
| Deferred tax assets relating to impairment provision | 5672 | 1240 | - | 348 | 7260 |
| Deferred tax assets relating to financial instruments | 70760 | 13066 | (244) | 722 | 84304 |
| Deferred tax assets relating to tax loss carry forward | 252202 | 109896 | (123207) | 2001 | 240892 |
| Deferred tax assets relating to biological assets | 4806 | (4806) | - | - | - |
| Deferred tax assets relating to inventories | 27374 | (7272) | - | 150 | 20252 |
| Deferred tax assets relating to provisions for income | 35889 | 5304 | - | 171 | 41364 |
| Deferred tax assets relating to allowance for doubtful accounts | 3160 | (474) | - | 23 | 2709 |
| Deferred tax assets relating to intangible revaluation | 215 | 182 | - | - | 397 |
| Deferred tax assets relating to other deductible temporary differences | 73791 | (9019) | - | 375 | 65147 |
| Total deferred tax assets | **597712**  | **145591**  | **(124705)**  | **4251**  | **622849**  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Opening<br> balance<br> 01-01-2025 | Deferred tax <br> (income)<br> expenses | Deferred tax of<br> items<br> charged<br> to equity | Increase<br> (decrease)<br> net exchange<br> differences | Closing<br> balance<br> 12-31-2025 |
| Deferred tax liabilities | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax liabilities relating to property, plant and equipment | 1374164 | 18239 | - | 5126 | 1397529 |
| Deferred tax liabilities relating to financial instruments | 18887 | 23216 | 281 | - | 42384 |
| Deferred tax liabilities relating to biological assets | 469770 | 11523 | - | - | 481293 |
| Deferred tax liabilities relating to inventory | 56101 | 4561 | - | 67 | 60729 |
| Deferred tax liabilities relating to prepaid expenses | 34889 | 2454 | - | 35 | 37378 |
| Deferred tax liabilities relating to intangible | 6089 | (1224) | - | 554 | 5419 |
| Deferred tax liabilities relating to other taxable temporary differences | 33915 | 11896 | - | 859 | 46670 |
| Total deferred tax liabilities | **1993815**  | **70665**  | **281**  | **6641**  | **2071402**  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Opening<br> balance<br> 01-01-2024 | Deferred tax <br>income<br> (expenses) | Deferred tax of<br> items<br> charged<br> to equity | Increase<br> (decrease)<br> business<br> combination | Increase<br> (decrease) net<br> exchange<br> differences | Closing<br> balance<br> 12-31-2024 |
| Deferred tax assets | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax assets relating to liabilities provisions | 14008 | (1857) | - | - | (1026) | 11125 |
| Deferred tax assets relating to investments | 78061 | 57110 | (135171) | - | - | - |
| Deferred tax assets relating to post-employment benefits | 25726 | (2866) | 207 | - | (4) | 23063 |
| Deferred tax assets relating to property, plant and equipment | 80410 | 10928 | - | 644 | (2327) | 89655 |
| Deferred tax assets relating to impairment provision | 12319 | (4408) | - | - | (2239) | 5672 |
| Deferred tax assets relating to financial instruments | 58580 | 14618 | 244 | - | (2682) | 70760 |
| Deferred tax assets relating to tax loss carry forward | 257423 | 7183 | (7581) | - | (4823) | 252202 |
| Deferred tax assets relating to biological assets | - | 4806 | - | - | - | 4806 |
| Deferred tax assets relating to inventories | 25011 | 2634 | - | - | (271) | 27374 |
| Deferred tax assets relating to provisions for income | 16807 | 19076 | - | - | 6 | 35889 |
| Deferred tax assets relating to allowance for doubtful accounts | 2384 | 791 | - | - | (15) | 3160 |
| Deferred tax assets relating to intangible revaluation | 35 | 180 | - | - | - | 215 |
| Deferred tax assets relating to other deductible temporary differences | 39065 | 37220 | - | - | (2494) | 73791 |
| Total deferred tax assets | **609829**  | **145415**  | **(142301)**  | 644 | **(15875)**  | **597712**  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Opening<br> balance<br> 01-01-2024 | Deferred tax <br> (income)<br> expenses | Deferred tax of<br> items<br> charged<br> to equity | Increase<br> (decrease)<br> business<br> combination | Increase<br> (decrease) net<br> exchange<br> differences | Closing<br> balance<br> 12-31-2024 |
| Deferred tax liabilities | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax liabilities relating to property, plant and equipment | 1415101 | (29618) | - | - | (11319) | 1374164 |
| Deferred tax liabilities relating to financial instruments | 26766 | (6617) | (1262) | - | - | 18887 |
| Deferred tax liabilities relating to biological assets | 475592 | (8089) | - | 2649 | (382) | 469770 |
| Deferred tax liabilities relating to inventory | 57619 | (1411) | - | - | (107) | 56101 |
| Deferred tax liabilities relating to prepaid expenses | 36837 | (1947) | - | - | (1) | 34889 |
| Deferred tax liabilities relating to intangible | 10420 | (2632) | - | - | (1699) | 6089 |
| Deferred tax liabilities relating to other taxable temporary differences | 42551 | (5471) | - | - | (3165) | 33915 |
| Total deferred tax liabilities | **2064886**  | **(55785)**  | **(1262)**  | 2649 | **(16673)**  | **1993815**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Opening<br> balance<br> 01-01-2023 | Deferred tax <br>income<br> (expenses) | Deferred tax<br> of items <br> charged to<br> equity | Increase<br> (decrease)<br> business<br> combination | Decrease due<br> to<br> classification <br> to held for sale | Increase<br> (decrease)<br> net exchange<br> differences | Closing<br> balance<br> 12-31-2023 |
| Deferred tax assets | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax Assets relating to liabilities provisions | 17896 | (3993) | - | - | (280) | 385 | 14008 |
| Deferred tax Assets relating to investments | - | (57110) | 135171 | - | - | - | 78061 |
| Deferred tax Assets relating to post-employment benefits | 25904 | (924) | 736 | - | - | 10 | 25726 |
| Deferred tax Assets relating to property, plant and equipment | 45919 | 34370 | - | - | - | 121 | 80410 |
| Deferred tax Assets relating to impairment provision | 13517 | (1907) | - | - | - | 709 | 12319 |
| Deferred tax Assets relating to financial instruments | 46789 | 15191 | - | - | (3986) | 586 | 58580 |
| Deferred tax Assets relating to tax loss carry forward | 117084 | 121524 | 17397 | 3516 | (3387) | 1289 | 257423 |
| Deferred tax Assets relating to inventories | 20942 | 4047 | - | - | (50) | 72 | 25011 |
| Deferred tax Assets relating to provisions for income | 9941 | 6859 | - | - | - | 7 | 16807 |
| Deferred tax Assets relating to allowance for doubtful accounts | 2472 | (90) | - | - | - | 2 | 2384 |
| Deferred tax Assets relating to intangible revaluation | 1466 | (1055) | - | - | (457) | 81 | 35 |
| Deferred tax Assets relating to other deductible temporary differences | 25777 | 12885 | - | - | (239) | 642 | 39065 |
| Total deferred tax assets | **327707**  | **129797**  | **153304**  | 3516 | (8399) | **3904**  | **609829**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Opening<br> balance<br> 01-01-2023 | Deferred tax <br> (income)<br> expenses | Deferred tax<br> of items <br> charged to<br> equity | Increase<br> (decrease)<br> business<br> combination | Decrease due<br> to<br> classification <br> to held for sale | Increase<br> (decrease)<br> net exchange<br> differences | Closing<br> balance<br> 12-31-2023 |
| Deferred tax liabilities | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax liabilities relating to property, plant and equipment | 1421116 | 4372 | - | - | (15638) | 5251 | 1415101 |
| Deferred tax liabilities relating to financial instruments | 27806 | 1173 | (2213) | - | - | - | 26766 |
| Deferred tax liabilities relating to biological assets | 527988 | 2157 | - | - | (60167) | 5614 | 475592 |
| Deferred tax liabilities relating to inventory | 56531 | 1059 | - | - | - | 29 | 57619 |
| Deferred tax liabilities relating to prepaid expenses | 37760 | (891) | - | - | - | (32) | 36837 |
| Deferred tax liabilities relating to intangible | 10173 | (311) | - | - | - | 558 | 10420 |
| Deferred tax liabilities relating to other taxable temporary differences | 23237 | 18224 | - | 208 | - | 882 | 42551 |
| Total deferred tax liabilities | **2104611**  | **25783**  | **(2213)**  | 208 | (75805) | **12302**  | **2064886**  |

---

Temporary differences

The following tables summarize the deductible and taxable temporary differences:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Deductible | Taxable | Deductible | Taxable |
|  | difference | difference | difference | difference |
| Detail of classes of deferred tax temporary differences | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax assets | 381957 | - | 345510 | - |
| Deferred tax assets - tax loss carry forward | 240892 | - | 252202 | - |
| Deferred tax liabilities | - | 2071402 | - | 1993815 |
| Total | 622849 | 2071402 | **597712**  | **1993815**  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| Detail of temporary difference income and loss amounts | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Deferred tax assets (\*) | 35695 | 137991 | 8275 |
| Deferred tax assets - tax loss carry forward (\*) | 109896 | 4175 | 121522 |
| Deferred tax liabilities (\*) | (70665) | 53104 | (25783) |
| Total | 74926 | 195270 | **104014**  |

---

(\*) In 2024, includes deferred tax expenses related to temporary differences and tax losses generated by Brazilian companies previously classified as held for sale, through the sale date.

Income tax expense

Income tax expense consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| Income tax composition | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current income tax expense | (106918) | (521903) | (122530) |
| Tax benefit arising from tax credit used to reduce current tax expense | 730 | 177291 | 60934 |
| Prior period current income tax adjustments | (1333) | (1747) | (11037) |
| Other current benefit tax (expenses) | (7209) | (19311) | (4088) |
| Current tax expense, net | (114730) | (365670) | (76721) |
| Deferred tax expense relating to origination and reversal of temporary differences (\*) | (34970) | 191095 | (17508) |
| Tax benefit arising from tax credits used to reduce deferred tax expense (\*) | 109896 | 4175 | 121522 |
| Total deferred tax benefit (expense), net | 74926 | 195270 | 104014 |
| Total income tax benefit (expense) | (39804) | (170400) | 27293 |

---

(\*) In 2024, includes deferred tax expenses related to temporary differences and tax losses generated by Brazilian companies previously classified as held for sale, through the sale date.

The following table presents the current income tax expense detailed by foreign and domestic (Chile) companies

for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Foreign current income tax expense | (67932) | (113313) | (57856) |
| Domestic current income tax expense | (46798) | (252357) | (18865) |
| Total current income tax expense | (114730) | (365670) | (76721) |
| Foreign deferred tax benefit (expense) (\*) | 9450 | 113445 | (28941) |
| Domestic deferred tax benefit (expense) | 65476 | 81825 | 132955 |
| Total deferred tax benefit (expense) | 74926 | 195270 | 104014 |
| Total income tax benefit (expense) | (39804) | (170400) | 27293 |

---

(\*) In 2024, includes deferred tax expenses related to temporary differences and tax losses generated by Brazilian companies previously classified as held for sale, through the sale date.

Reconciliation of income tax expense from statutory tax rate to the effective tax rate.

The reconciliation of income tax expense is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| Reconciliation of income tax from statutory rate to effective tax rate | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Statutory domestic (Chile) income tax rate | 27% | 27% | 27% |
| Tax expense at statutory tax rate | **(21784)**  | (174604) | 104171 |
| Tax effect of foreign tax rates | 11345 | 14935 | 2418 |
| Tax effect of income exempt from taxation | 36362 | 130193 | 85540 |
| Tax effect of not deductible expenses  | (48157) | (166531) | (61380) |
| Tax rate effect of previously unrecognized tax loss | 12781 | - | - |
| Tax effect of a new evaluation of deferred tax assets (\*) | (11920) | 64350 | (79121) |
| Tax effect of tax provided in excess in prior periods | (1333) | (1747) | (11037) |
| Other tax rate effects (\*\*) | (17098) | (36996) | (13298) |
| Total adjustments to tax expense at applicable tax rate | (18020) | 4204 | (76878) |
| Tax benefit (expense) at effective tax rate | (39804) | (170400) | 27293 |

---

(\*) It corresponds mainly to the tax effect associated with the inflation adjustment on Argentine tax bases.

(\*\*) It mainly includes the tax effect generated by the exchange difference in the conversion of tax bases with local currency other than the functional currency.

Arauco has assessed the potential impact derived from the implementation of the so-called "GloBE or Pillar 2 rules," which seek to ensure that multinational groups pay a minimum effective tax rate of 15%.

To date, this regulation has not been adopted in Chile (the jurisdiction where Arauco's headquarters are located), but it has been adopted in other jurisdictions where Arauco operates, making it necessary to estimate the potential impact of its application as of its effective date for the fiscal years ended December 31, 2025 and 2024.

Therefore, based on its best understanding, Arauco has evaluated the impact that these regulations could have in all jurisdictions where it operates and has determined that, to date, they would only have an impact on some of its operations in Uruguay, recognizing a preliminary tax with an effect on profit or loss of ThU.S.$4,255 in the fiscal year 2025 (ThU.S.$14,136 for the year ended December 31, 2024). The balance of the provision for this item as of December 31, 2025 amounts to ThU.S.$20,243 (ThU.S.$14,136 as of December 31, 2025).

Current tax assets and liabilities

The current tax assets and liabilities balances are as follow:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Current tax assets  | ThU.S.$ | ThU.S.$ |
| Monthly Provisional Payments  | 46156 | 45691 |
| Income tax receivable | 27071 | 30058 |
| Provision tax income | (46384) | (45129) |
| Recoverable credits | 47698 | 43288 |
| Other tax receivables | 1768 | 1705 |
| Total | 76309 | 75613 |

---

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Current tax liabilities  | ThU.S.$ | ThU.S.$ |
| Provision tax income (First category) | 24445 | 216591 |
| Monthly Provisional Payments and other tax receivables | (15531) | (203450) |
| Other tax payables | 21491 | 14424 |
| Total | 30405 | 27565 |

---

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Non-current current tax liabilities  | ThU.S.$ | ThU.S.$ |
| Provision tax income (First category), non-current | 3001 |  |
| Other tax payables, non-current | 4255 |  |
| Total | 7256 |  |

---

#### NOTE 7. PROPERTY, PLANT AND EQUIPMENT

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Property, plant and equipment, net |  |  |
| Construction work in progress | 2316654 | 725744 |
| Land | 978088 | 931333 |
| Buildings | 3565602 | 3663306 |
| Plant and equipment | 3941918 | 3984319 |
| Information technology equipment | 39479 | 41250 |
| Fixtures and fittings | 12822 | 12288 |
| Motor vehicles | 64695 | 54744 |
| Bearer plants | 1045 | - |
| Other property, plant and equipment | 204510 | 197087 |
| Total net | **11124813**  | **9610071**  |
| Property, plant and equipment, gross |  |  |
| Construction work in progress | 2316654 | 725744 |
| Land | 978088 | 931333 |
| Buildings | 6578709 | 6505187 |
| Plant and equipment | 9188739 | 8988084 |
| Information technology equipment | 147033 | 141492 |
| Fixtures and fittings | 57908 | 55785 |
| Motor vehicles | 136536 | 119251 |
| Bearer plants | 1350 | - |
| Other property, plant and equipment | 221678 | 215056 |
| Total gross | **19626695**  | **17681932**  |
| Accumulated depreciation and impairment |  |  |
| Buildings | (3013107) | (2841881) |
| Plant and equipment | (5246821) | (5003765) |
| Information technology equipment | (107554) | (100242) |
| Fixtures and fittings | (45086) | (43497) |
| Motor vehicles | (71841) | (64507) |
| Bearer plants | (305) | - |
| Other property, plant and equipment | (17168) | (17969) |
| Total | **(8501882)**  | **(8071861)**  |

---

Description of property, plant and equipment pledged as security for liabilities

As of December 31, 2025, there are no significant assets pledged as collateral to be disclosed in these consolidated financial statements.

Disbursements commitments for the acquisition of property, plant and equipment and disbursements for property, plant and equipment under construction.

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Amount committed for the acquisition of property, plant and equipment | 3561992 | 1918997  |

---

The disbursements commitments are mainly related to Sucuriú project.

Reconciliation of property, plant and equipment

The following tables set forth the reconciliation of the carrying amount of property, plant and equipment

as of December 31, 2025 and 2024

:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Construction<br> work in<br> progress | Land | Buildings | Plant and<br> equipment | IT<br> equipment | Fixtures and<br> fittings | Motor<br> vehicles | Bearer<br> plants | Other<br> property,<br> plant and<br> equipment | Total |
| Reconciliation of property, plant and equipment | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance 01-01-2025 | 725744 | 931333 | 3663306 | 3984319 | 41250 | 12288 | 54744 | - | 197087 | 9610071 |
| Changes |  |  |  |  |  |  |  |  |  |  |
| Additions | 1999149 | 40891 | 19529 | 61975 | 1237 | 653 | 4379 | - | 7918 | **2135731**  |
| Disposals | - | (2726) | (554) | (7840) | (9) | (7) | (196) | - | (585) | **(11917)**  |
| Withdrawals | (6865) | (571) | (3306) | (8980) | (173) | (33) | (384) | - | (103) | **(20415)**  |
| Depreciation  | - | - | (225723) | (403903) | (8727) | (2956) | (11709) | (305) | (1447) | **(654770)**  |
| Impairment loss recognized in profit or loss | - | - | 3362 | 3015 | - | - | 38 | - | - | **6415**  |
| Increase (decrease) through net exchange differences | 27600 | 8888 | 15881 | 41740 | 352 | 133 | 34 | - | 2518 | **97146**  |
| Reclassification of assets held for sale | - | (1528) | (100) | (3347) | - | - | (26) | - | - | **(5001)**  |
| Transfers from construction in progress closed and reclassifications | (428974) | 1801 | 93207 | 304758 | 5549 | 2744 | 20443 | 1350 | (878) | **-**  |
| Decrease through transfers of leasing assets | - | - | - | (29819) | - | - | (2628) | - | - | **(32447)**  |
| Total changes | **1590910**  | **46755**  | **(97704)**  | **(42401)**  | **(1771)**  | **534**  | **9951**  | **1045**  | **7423**  | **1514742**  |
| Closing balance 12-31-2025 | **2316654**  | **978088**  | **3565602**  | **3941918**  | **39479**  | **12822**  | **64695**  | **1045**  | **204510**  | **11124813**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Construction<br> work in<br> progress | Land | Buildings | Plant and<br> equipment | IT<br> equipment | Fixtures and<br> fittings | Motor<br> vehicles | Other<br> property,<br> plant and<br> equipment | Total |
| **Reconciliation of property, plant and equipment**  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance 01-01-2024 | **611424**  | **882222**  | **3774756**  | **4074957**  | **42659**  | **12795**  | **50678**  | **157625**  | **9607116**  |
| Changes |  |  |  |  |  |  |  |  |  |
| Additions | 627882 | 34531 | 10667 | 59509 | 687 | 778 | 4107 | 33279 | **771440**  |
| Business combination | - | 29972 | 274 | 14 | - | 12 | - | 4 | 30276 |
| Disposals | (560) | (524) | (5091) | (1681) | (43) | (99) | (914) | - | **(8912)**  |
| Withdrawals | (3864) | (139) | (3416) | (14129) | (158) | (30) | (251) | (741) | **(22728)**  |
| Depreciation  | - | - | (222523) | (393772) | (8504) | (3073) | (9476) | (1297) | **(638645)**  |
| Impairment loss recognized in profit or loss | - | - | (1082) | (7799) | (35) | (567) | - | - | **(9483)**  |
| Increase (decrease) through net exchange differences | (23171) | (22583) | (16113) | (42634) | (394) | (96) | (2624) | (4402) | **(112017)**  |
| Reclassification of assets held for sale | - | (3601) | - | - | - | - | - | 12000 | 8399 |
| Transfers from construction in progress closed and reclassifications | (485967) | 11455 | 125834 | 322902 | 7038 | 2568 | 15551 | 619 | **-**  |
| Reclassification from lease to property, plant and equipment | - | - | - | 292 | - | - | - | - | 292 |
| Decrease through transfers of leasing assets  | -  | -  | -  | (13340 ) | -  | -  | (2327 ) | -  | (15667) |
| Total changes | **114320**  | **49111**  | **(111450)**  | **(90638)**  | **(1409)**  | **(507)**  | **4066**  | **39462**  | **2955**  |
| Closing balance 12-31-2024 | **725744**  | **931333**  | **3663306**  | **3984319**  | **41250**  | **12288**  | **54744**  | **197087**  | **9610071**  |

---

The depreciation expense for the years ended December 31, 2025, 2024 and 2023 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | January-December | January-December | January-December |
|  | 2025 | 2024 | 2023 |
| Depreciation for the years | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Cost of sales | 591693 | 584343 | 535244 |
| Administrative expenses | 29807 | 30007 | 29009 |
| Other expenses | 12143 | 14709 | 46122 |
| Total  | **633643**  | **629059**  | 610375 |

---

The useful lives of property, plant and equipment are estimated based on the expected use of the assets. The average useful lives by asset class are as follow:

---

| | | |
|:---|:---|:---|
|  | Years of Useful Life<br> (Average) | Years of Useful Life<br> (Average) |
| Buildings |  | 58 |
| Plant and equipment |  | 30 |
| Information technology equipment |  | 8 |
| Fixtures and fittings |  | 28 |
| Motor vehicles |  | 7 |
| Bearer plants |  | 5 |
| Other property, plant and equipment |  | 14 |

---

The capitalized borrowing costs are detailed in Note 12.

#### NOTE 8. Leases
Arauco acting as lessee

Right of use assets

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Property, plant and equipment by right of use, net |  |  |
| Land | 846850 | 599101 |
| Buildings | 23338 | 15992 |
| Plant and equipment | 64704 | 63102 |
| Information technology equipment | 304 | 392 |
| Motor vehicles | 58219 | 80464 |
| Other property, plant and equipment | 10303 | 12835 |
| Total net | **1003718**  | **771886**  |
| Property, plant and equipment by right of use, gross |  |  |
| Land | 942871 | 660753 |
| Buildings | 42205 | 32265 |
| Plant and equipment | 96808 | 93922 |
| Information technology equipment | 737 | 784 |
| Motor vehicles | 129820 | 269228 |
| Other property, plant and equipment | 16044 | 15845 |
| Total gross | **1228485**  | **1072797**  |
| Accumulated depreciation and impairment by right of use |  |  |
| Land | (96021) | (61652) |
| Buildings | (18867) | (16273) |
| Plant and equipment | (32104) | (30820) |
| Information technology equipment | (433) | (392) |
| Motor vehicles | (71601) | (188764) |
| Other property, plant and equipment | (5741) | (3010) |
| Total | **(224767)**  | **(300911)**  |

---

Reconciliation of property, plant and equipment by right of use

The following tables set forth the reconciliation of the carrying amount of property, plant and equipment by right of use

as of December 31, 2025 and 2024

:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Land | Buildings | Plant and <br> equipment | IT equipment | Motor vehicles | Other property, <br> plant and <br> equipment | Total |
| **Reconciliation of property, plant and equipment by right of use**  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance 01-01-2025 | **599101**  | **15992**  | **63102**  | **392**  | **80464**  | **12835**  | **771886**  |
| Changes |  |  |  |  |  |  |  |
| Additions | 300063 | 13869 | 7215 | 222 | 19054 | 199 | **340622**  |
| Disposals | - | - | - | - | (574) | - | (574) |
| Withdrawals | (3659) | - | - | - | (9879) | - | (13538) |
| Depreciation (\*) | (37407) | (6471) | (5891) | (350) | (30200) | (2731) | **(83050)**  |
| Increase (decrease) through net exchange differences | 868 | 51 | 278 | 40 | (183) | - | **1054**  |
| Increase (decrease) through others | (12116) | (103) | - | - | (463) | - | **(12682)**  |
| Total changes | **247749**  | **7346**  | **1602**  | **(88)**  | **(22245)**  | **(2532)**  | **231832**  |
| Closing balance 12-31-2025 | **846850**  | **23338**  | **64704**  | **304**  | **58219**  | **10303**  | **1003718**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Land | Buildings | Plant and <br> equipment | IT equipment | Motor vehicles | Other property, <br> plant and <br> equipment | Total |
| **Reconciliation of property, plant and equipment by right of use**  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance 01-01-2024 | **460386**  | **16412**  | **60993**  | **186**  | **50869**  | **11515**  | **600361**  |
| Changes |  |  |  |  |  |  |  |
| Additions | 280671 | 8385 | 9103 | 511 | 58954 | 3797 | **361421**  |
| Disposals | - | (2474) | - | - | (130) | - | (2604) |
| Withdrawals | - | (539) | - | - | (178) | - | **(717)**  |
| Depreciation (\*) | (31792) | (5604) | (6641) | (204) | (28977) | (2200) | **(75418)**  |
| Increase (decrease) through net exchange differences | (110574) | (131) | (353) | (101) | (74) | 15 | **(111218)**  |
| Reclassification from lease to Property, plant and equipment | - | - | - | - | - | (292) | (292) |
| Increase (decrease) through others | 410 | (57) | - | - | - | - | **353**  |
| Total changes | **138715**  | **(420)**  | **2109**  | **206**  | **29595**  | **1320**  | **171525**  |
| Closing balance 12-31-2024 | **599101**  | **15992**  | **63102**  | **392**  | **80464**  | **12835**  | **771886**  |

---

(\*) The amount of depreciation related to land leased for plantations is reclassified to biological assets to form part of the formation costs.

Lease liabilities and their maturity are presented in Notes 11 and 23.

The depreciation expense for the years ending December 31, 2025, 2024 and 2023 recognized in property, plant and equipment by right of use is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| Depreciation for the period | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Cost of sales | 32025 | 35005 | 28082 |
| Distribution costs | 1647 | 1068 | 1184 |
| Administrative expenses | 8543 | 7110 | 7361 |
| Total  | **42215**  | 43183 | 36627 |

---

Additionally, Arauco has recognized directly in the consolidated statement of profit or loss, the following leases excluded from right of use assets:

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Expenses from payments of variable leases | (149000) | (231094) | (206332) |
| Expenses from low value leases | (3583) | (4603) | (3899) |
| Expenses from short-term leases | (34225) | (39047) | (39878) |
| Income from sublease of right of use assets  | 655  | 628  | 464  |

---

Arauco acting as lessor

Reconciliation of financial lease minimum payments:

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 |
|  | Gross | Interest | Present value |
| Periods | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Less than one year | 26758 | 2725 | 24033 |
| Between one and two years | 24433 | 1749 | 22684 |
| Between two and three years | 16626 | 831 | 15795 |
| Between three and four years | 7860 | 408 | 7452 |
| Between four and five years | 2618 | 159 | 2459 |
| More than five years | 5242 | 346 | 4896 |
| Total | 83537 | 6218 | 77319 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | Gross | Interest | Present value |
| Periods | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Less than one year | 19532 | 2285 | 17247 |
| Between one and two years | 20042 | 1804 | 18238 |
| Between two and three years | 18397 | 1005 | 17392 |
| Between three and four years | 12284 | 360 | 11924 |
| Between four and five years | 2731 | 54 | 2677 |
| More than five years | 210 | 1 | 209 |
| Total | 73196 | 5509 | 67687 |

---

Financial lease receivables are presented in the consolidated statements of financial position in line items "Trade and other current receivable" and "Trade and other non-current receivable" depending on their maturities stated above.

Arauco accounts for its lease contracts as financial leases. These lease contracts are for a term of less than six years at market interest rates and leased assets are forestry machinery and equipment. They also include an early termination option, under general and special conditions stipulated in each contract.

Arauco holds leases as lessee and lessor, described in the previous tables, for which there are no impairment contingent payments or restrictions to report.

#### NOTE 9. REVENUE

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
| **Classes of revenue** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenue from sales of goods | 5944197 | 6415109 | 5869341 |
| Revenue from rendering of services | 139945 | 131037 | 142478 |
| Total | 6084142 | 6546146 | 6011819 |

---

The reportable segments revenues by business area and by geographical area are presented in Note 24.

NOTE 10. EMPLOYEE BENEFITS

Classes of benefits and expenses by employee

---

| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Employee expenses | **739797**  | 711016 | 747288 |
| Wages and salaries | 716787 | 690996 | 717548 |
| Severance indemnities | 23010 | 20020 | 29740 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| Discount rate | 3.23% | 3.23% | 3.23% |
| Inflation | 3.20% | 3.20% | 3.20% |
| Annual rate of wage growth | 5.22% | 5.22% | 5.22% |
| Mortality rate | RV-2020 | RV-2020 | RV-2014 |

---

---

| | |
|:---|:---|
|  | 2025 |
| Sensitivities to assumptions | ThU.S.$ |
| Discount rate |  |
| Increase in 100 bps  | (6170) |
| Decrease in 100 bps  | 7064 |
| Wage growth rates |  |
| Increase in 100 bps  | 6195 |
| Decrease in 100 bps  | (5486) |

---

The following tables set forth the balances and the reconciliation of the present value of severance indemnities obligations as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Current | 7501 | 6669 |
| Non-current | 87359 | 77634 |
| Total | 94860 | 84303 |

---

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Reconciliation of the present value of severance indemnities obligations  | ThU.S.$ | ThU.S.$ |
| Opening balance | 84303 | 94325 |
| Current service cost | 6840 | 5979 |
| Interest cost | 4863 | 4367 |
| (Gains) losses from changes in actuarial assumptions | -  | 22 |
| Actuarial gains and losses arising from experience  | (4643) | 743 |
| Benefits paid | (5064) | (7152) |
| Increase (decrease) for foreign currency exchange rates changes | 8561 | (13981) |
| Closing balance | 94860 | 84303 |

---

The average staffing as of December 31, 2025 was 19,100 people.

NOTE 11. BALANCES IN FOREIGN CURRENCY AND FOREIGN CURRENCY EXCHANGE RATE IMPACT IN PROFIT OR LOSS.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | U.S Dollar | Euros | Brazilian <br> Real | Argentine <br> Pesos | Mexican Pesos | Other<br> currencies | Chilean <br> Pesos | U.F. | Total |
| December 31, 2025  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Assets |  |  |  |  |  |  |  |  |  |
| Current assets |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | 777505 | 15723 | 107494 | 43063 | 32564 | 69274 | 238430 | - | 1284053 |
| Other current financial assets | 230988 | - | - | - | - | - | 36 | - | 231024 |
| Other current non-financial assets | 84335 | 663 | 12620 | 14116 | 25684 | 6047 | 69351 | - | 212816 |
| Trade and other current receivables | 537861 | 16967 | 52973 | 22408 | 36149 | 7910 | 130689 | 27209 | 832166 |
| Accounts receivable due from related companies | 48 | - | - | - | - | - | 442 | - | 490 |
| Current inventories | 1372990 | - | 93292 | - | 48503 | - | 1854 | - | 1516639 |
| Current biological assets | 235512 | - | 821 | - | - | - | - | - | 236333 |
| Current tax assets | 63063 | - | 4446 | - | 1388 | 4695 | 2717 | - | 76309 |
| Non-current assets or disposal groups classified as held for sale | **3302302**  | **33353**  | **271646**  | **79587**  | **144288**  | **87926**  | **443519**  | **27209**  | **4389830**  |
| Non-current assets or disposal groups classified as held for sale | 3807 | - | 15 | - | 53 | - | 26 | - | 3901 |
| Total current assets | 3306109 | 33353 | 271661 | 79587 | 144341 | 87926 | 443545 | 27209 | 4393731 |
| Non-current assets |  |  |  |  |  |  |  |  |  |
| Other non-current financial assets  | 257498 | - | - | - | - | - | - | - | 257498 |
| Other non-current non-financial assets | 546939 | 36 | 106045 | - | 810 | 671 | 1262 | 91 | 655854 |
| Trade and other non-current receivables | 1394 | - | 18623 | 344 | - | - | 5264 | 53700 | 79325 |
| Investments accounted for using equity method | 113857 | 232236 | 73998 | - | - | - | 63451 | - | 483542 |
| Intangible assets other than goodwill | 46367 | - | 1276 | - | 308 | 2414 | 128 | - | 50493 |
| Goodwill | 39335 | - | 11298 | - | - | 2048 | - | - | 52681 |
| Property, plant and equipment  | 10401426 | - | 303204 | - | 385773 | 33032 | 1378 | - | 11124813 |
| Right of use assets | 1000254 | - | 414 | - | 2657 | 388 | 5 | - | 1003718 |
| Non-current biological assets | 3101604 | - | - | - | - | - | - | - | 3101604 |
| Deferred tax assets | 59779 | - | 41725 | - | - | - | - | - | 101504 |
| Total non-current assets | 15568453 | 232272 | 556583 | 344 | 389548 | 38553 | 71488 | 53791 | 16911032 |
| Total assets | 18874562 | 265625 | 828244 | 79931 | 533889 | 126479 | 515033 | 81000 | 21304763 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | U.S Dollar | Euros | Brazilian <br> Real | Argentine <br> Pesos | Mexican Pesos | Other<br> currencies | Chilean <br> Pesos | U.F. | Total |
| December 31, 2025  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Liabilities |  |  |  |  |  |  |  |  |  |
| Current liabilities |  |  |  |  |  |  |  |  |  |
| Other current financial liabilities | 236724 | 76916 | 109184 | - | - | - | - | 285646 | 708470 |
| Current lease liabilities | 16279 | 110 | 16052 | - | 428 | 341 | 16430 | 6183 | 55823 |
| Trade and other current payables | 156792 | 37180 | 428735 | 41240 | 23199 | 30083 | 285349 | 40663 | 1043241 |
| Accounts payable to related companies | 559 | - | - | - | - | - | 8878 | - | 9437 |
| Other short-term provisions | 116 | - | 1514 | - | - | - | 21 | 1404 | 3055 |
| Current tax liabilities | 8691 | 17598 | 72 | 2791 | 974 | 279 | - | - | 30405 |
| Current provisions for employee benefits | 13 | - | - | - | - | - | 7488 | - | 7501 |
| Other current non-financial liabilities | 17890 | 150 | 30553 | 6380 | 7156 | 49 | 11465 | - | 73643 |
| Total current liabilities | 437064 | 131954 | 586110 | 50411 | 31757 | 30752 | 329631 | 333896 | 1931575 |
| Non-current liabilities |  |  |  |  |  |  |  |  |  |
| Other non-current financial liabilities  | 4022076 | 217535 | 83803 | - | - | - | - | 2615874 | 6939288 |
| Non-current lease liabilities | 129212 | 213 | 778083 | - | 549 | 257 | 33567 | 17356 | 959237 |
| Other non current payables | 24952 | - | 19558 | - | - | - | 9203 | - | 53713 |
| Non-current accounts payable to related companies | 23924 | - | - | - | - | - | - | - | 23924 |
| Other long-term provisions | 23482 | - | 6879 | 2803 | 5424 | - | - | - | 38588 |
| Deferred tax liabilities | 1507901 | - | 29700 | - | 7297 | 5159 | - | - | 1550057 |
| Current tax liabilities, non-current | 4255 | - | - | 3001 | - | - | - | - | 7256 |
| Non-current provisions for employee benefits | - | - | - | - | 1574 | - | 85785 | - | 87359 |
| Other non-current non-financial liabilities | - | - | 29506 | 65 | - | - | 717 | - | 30288 |
| Total non-current liabilities | 5735802 | 217748 | 947529 | 5869 | 14844 | 5416 | 129272 | 2633230 | 9689710 |
| Total liabilities | 6172866 | 349702 | 1533639 | 56280 | 46601 | 36168 | 458903 | 2967126 | 11621285 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | U.S dollar | Euros | Brazilian<br> real | Argentine<br> pesos | Mexican<br> pesos | Other <br> currencies | Chilean <br> pesos | U.F. | Total |
| December 31, 2024 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Assets |  |  |  |  |  |  |  |  |  |
| Current assets |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | 668888 | 8754 | 117848 | 12642 | 40128 | 11794 | 211506 | - | 1071560 |
| Other current financial assets | 25949 | - | - | - | - | - | 11 | - | 25960 |
| Other current non-financial assets | 104366 | 562 | 17153 | 31100 | 20539 | 9551 | 77821 | - | 261092 |
| Trade and other current receivables | 815884 | 28149 | 38327 | 26569 | 33704 | 1077 | 92401 | 18596 | 1054707 |
| Accounts receivable due from related companies | 5646 | - | - | 1812 | - | - | 2701 | - | 10159 |
| Current Inventories | 1335410 | - | 81043 | - | 37954 | - | 1853 | - | 1456260 |
| Current biological assets | 304302 | - | 11198 | - | - | - | - | - | 315500 |
| Current tax assets | 70105 | - | 2636 | - | 515 | - | 2357 | - | 75613 |
| Non-current assets or disposal groups classified as held for sale | **3330550**  | **37465**  | **268205**  | **72123**  | **132840**  | **22422**  | **388650**  | **18596**  | **4270851**  |
| Non-current assets or disposal groups classified as held for sale | 3708 | - | 13 | - | 46 | - | - | - | 3767 |
| Total current assets | **3334258**  | **37465**  | **268218**  | **72123**  | **132886**  | **22422**  | **388650**  | **18596**  | **4274618**  |
| Non-current assets |  |  |  |  |  |  |  |  |  |
| Other non-current financial assets  | 16747 | - | - | - | - | - | - | - | 16747 |
| Other non-current non-financial assets | 58937 | - | 24043 | - | 629 | 8 | 1419 | - | 85036 |
| Trade and other non-current receivables | 2784 | - | 9891 | 458 | - | - | 1505 | 51097 | 65735 |
| Investments accounted for using equity method | 106784 | 211345 | 41352 | - | - | - | 47130 | - | 406611 |
| Intangible assets other than goodwill | 52318 | - | 2368 | - | 63 | - | 1231 | - | 55980 |
| Goodwill | 41286 | - | 10039 | - | - | - | - | - | 51325 |
| Property, plant and equipment  | 8917848 | - | 462845 | - | 228153 | - | 1225 | - | 9610071 |
| Right of use assets | 225551 | - | 544198 | - | 1932 | - | 205 | - | 771886 |
| Non-current biological assets | 2554897 | - | 192997 | - | - | - | - | - | 2747894 |
| Deferred tax assets | 21407 | - | 48554 | - | 714 | - | 2734 | - | 73409 |
| Total non-current assets | **11998559**  | **211345**  | **1336287**  | **458**  | **231491**  | **8**  | **55449**  | **51097**  | **13884694**  |
| Total assets | **15332817**  | **248810**  | **1604505**  | **72581**  | **364377**  | **22430**  | **444099**  | **69693**  | **18159312**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | U.S dollar | Euros | Brazilian<br> real | Argentine<br> pesos | Mexican<br> pesos | Other <br> currencies | Chilean <br> pesos | U.F. | Total |
| December 31, 2024 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Liabilities |  |  |  |  |  |  |  |  |  |
| Current liabilities |  |  |  |  |  |  |  |  |  |
| Other current financial liabilities  | 191900 | 67987 | 36538 | - | - | - | - | 52480 | 348905 |
| Current lease liabilities | 13273 | 113 | 13435 | - | 584 | 965 | 22582 | 4899 | 55851 |
| Trade and other current payables | 188747 | 21414 | 78396 | 47373 | 24199 | 16411 | 331286 | 38145 | 745971 |
| Accounts payable to related companies | 426 | - | 3007 | - | - | - | 7130 | - | 10563 |
| Other short-term provisions | 490 | - | - | - | - | - | 111 | 1236 | 1837 |
| Current tax liabilities | 3086 | 12092 | 1184 | 8252 | 2951 | - | - | - | 27565 |
| Current provisions for employee benefits | - | - | - | - | - | - | 6669 | - | 6669 |
| Other current non-financial liabilities | 125483 | 94 | 21938 | 6714 | 2999 | 9 | 8328 | 24 | 165589 |
| Total liabilities, current | **523405**  | **101700**  | **154498**  | **62339**  | **30733**  | **17385**  | **376106**  | **96784**  | **1362950**  |
| Non-current liabilities |  |  |  |  |  |  |  |  |  |
| Other non-current financial liabilities  | 3534436 | 255430 | 164899 | - | - | - | - | 1766947 | 5721712 |
| Non-current lease liabilities | 120661 | 295 | 490778 | - | 523 | 49 | 43238 | 16595 | 672139 |
| Other non-current payables | 23942 | - | 3266 | - | - | - | 8102 | - | 35310 |
| Non-current accounts payable to related companies | 26207 | - | - | - | - | - | - | - | 26207 |
| Other long-term provisions | - | - | 6785 | 26294 | - | - | 42 | - | 33121 |
| Deferred tax liabilities | 1443086 | - | 21645 | - | 4781 | - | - | - | 1469512 |
| Non-current provisions for employee benefits | - | - | - | - | 1211 | - | 76423 | - | 77634 |
| Other non-current non-financial liabilities | - | - | 36075 | 64 | - | - | 873 | - | 37012 |
| Total non-current liabilities | **5148332**  | **255725**  | **723448**  | **26358**  | **6515**  | **49**  | **128678**  | **1783542**  | **8072647**  |
| Total liabilities | **5671737**  | **357425**  | **877946**  | **88697**  | **37248**  | **17434**  | **504784**  | **1880326**  | **9435597**  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | Up to 90 <br> days | From 91 <br> days to 1 <br> year | Total | Up to 90 <br> days | From 91 <br> days to 1 <br> year | Total |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Total current liabilities | **1306967**  | **624608**  | **1931575**  | **1021171**  | **341779**  | **1362950**  |
| Other current financial liabilities | 163130 | 545340 | 708470 | 60710 | 288195 | 348905 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 71285 | 165439 | 236724 | 36401 | 155499 | 191900 |
| &nbsp;&nbsp;&nbsp;Euros | - | 76916 | 76916 | - | 67987 | 67987 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 91845 | 17339 | 109184 | 24309 | 12229 | 36538 |
| &nbsp;&nbsp;&nbsp;U.F. | - | 285646 | 285646 | - | 52480 | 52480 |
| &nbsp;&nbsp;&nbsp;Bank borrowings | 91845 | 219854 | 311699 | 28154 | 220673 | 248827 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | - | 125599 | 125599 | 3845 | 140457 | 144302 |
| &nbsp;&nbsp;&nbsp;Euros | - | 76916 | 76916 | - | 67987 | 67987 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 91845 | 17339 | 109184 | 24309 | 12229 | 36538 |
| &nbsp;&nbsp;&nbsp;Other borrowings | 71285 | 325486 | 396771 | 32556 | 67522 | 100078 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 71285 | 39840 | 111125 | 32556 | 15042 | 47598 |
| &nbsp;&nbsp;&nbsp;U.F. | - | 285646 | 285646 | - | 52480 | 52480 |
| Current lease liabilities | 18605 | 37218 | 55823 | 15116 | 40735 | 55851 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 4160 | 12119 | 16279 | 3612 | 9661 | 13273 |
| &nbsp;&nbsp;&nbsp;Euros | 32 | 78 | 110 | 30 | 83 | 113 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 6176 | 9876 | 16052 | 3729 | 9706 | 13435 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 177 | 251 | 428 | 147 | 437 | 584 |
| &nbsp;&nbsp;&nbsp;Other currencies | 103 | 238 | 341 | 107 | 858 | 965 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 5557 | 10873 | 16430 | 5698 | 16884 | 22582 |
| &nbsp;&nbsp;&nbsp;U.F. | 2400 | 3783 | 6183 | 1793 | 3106 | 4899 |
| Trade and other current payables | 1002999 | 40242 | 1043241 | 741847 | 4124 | 745971 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 156408 | 384 | 156792 | 188747 | - | 188747 |
| &nbsp;&nbsp;&nbsp;Euros | 37180 | - | 37180 | 21414 | - | 21414 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 392040 | 36695 | 428735 | 74610 | 3786 | 78396 |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 41240 | - | 41240 | 47373 | - | 47373 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 20036 | 3163 | 23199 | 23861 | 338 | 24199 |
| &nbsp;&nbsp;&nbsp;Other currencies | 30083 | - | 30083 | 16411 | - | 16411 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 285349 | - | 285349 | 331286 | - | 331286 |
| &nbsp;&nbsp;&nbsp;U.F. | 40663 | - | 40663 | 38145 | - | 38145 |
| Accounts payable to related companies | 9437 | - | 9437 | 10563 | - | 10563 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 559 | - | 559 | 426 | - | 426 |
| &nbsp;&nbsp;&nbsp;Brazilian real | - | - | - | 3007 | - | 3007 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 8878 | - | 8878 | 7130 | - | 7130 |
| Other short-term provisions | 3055 | - | 3055 | 1837 | - | 1837 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 116 | - | 116 | 490 | - | 490 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 1514 | - | 1514 | - | - | - |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 21 | - | 21 | 111 | - | 111 |
| &nbsp;&nbsp;&nbsp;U.F. | 1404 | - | 1404 | 1236 | - | 1236 |
| Current tax liabilities | 28597 | 1808 | 30405 | 18840 | 8725 | 27565 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 6883 | 1808 | 8691 | 2613 | 473 | 3086 |
| &nbsp;&nbsp;&nbsp;Euros | 17598 | - | 17598 | 12092 | - | 12092 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 72 | - | 72 | 1184 | - | 1184 |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 2791 | - | 2791 | - | 8252 | 8252 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 974 | - | 974 | 2951 | - | 2951 |
| &nbsp;&nbsp;&nbsp;Other currencies | 279 | - | 279 | - | - | - |
| Current provisions for employee benefits | 7501 | - | 7501 | 6669 | - | 6669 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 13 | - | 13 | - | - | - |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 7488 | - | 7488 | 6669 | - | 6669 |
| Other current non-financial liabilities | 73643 | - | 73643 | 165589 | - | 165589 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 17890 | - | 17890 | 125483 | - | 125483 |
| &nbsp;&nbsp;&nbsp;Euros | 150 | - | 150 | 94 | - | 94 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 30553 | - | 30553 | 21938 | - | 21938 |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 6380 | - | 6380 | 6714 | - | 6714 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 7156 | - | 7156 | 2999 | - | 2999 |
| &nbsp;&nbsp;&nbsp;Other currencies | 49 | - | 49 | 9 | - | 9 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 11465 | - | 11465 | 8328 | - | 8328 |
| &nbsp;&nbsp;&nbsp;U.F. | - | - | - | 24 | - | 24 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | From 13 <br>months to 3<br> years | From 3 years<br> to 5 years | More than 5<br> years | Total | From 13 <br> months to 3<br> years | From 3 <br> years to 5<br> years | More than 5 <br> years | Total |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Total non-current liabilities | 2483597 | 1561743 | 5644370 | 9689710 | 2905653 | 1040941 | 4126053 | 8072647 |
| Other non-current financial liabilities  | 1156587 | 1405814 | 4376887 | 6939288 | 1686157 | 885612 | 3149943 | 5721712 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 716962 | 1220427 | 2084687 | 4022076 | 1166799 | 495482 | 1872155 | 3534436 |
| &nbsp;&nbsp;&nbsp;Euros | 144005 | 73530 | - | 217535 | 126200 | 129230 | - | 255430 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 60984 | 22819 | - | 83803 | 120222 | 44677 | - | 164899 |
| &nbsp;&nbsp;&nbsp;U.F. | 234636 | 89038 | 2292200 | 2615874 | 272936 | 216223 | 1277788 | 1766947 |
| &nbsp;&nbsp;&nbsp;Bank borrowings | 414511 | 322845 | 207111 | 944467 | 728289 | 173907 | - | 902196 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 209522 | 226496 | 207111 | 643129 | 481867 | - | - | 481867 |
| &nbsp;&nbsp;&nbsp;Euros | 144005 | 73530 | - | 217535 | 126200 | 129230 | - | 255430 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 60984 | 22819 | - | 83803 | 120222 | 44677 | - | 164899 |
| &nbsp;&nbsp;&nbsp;Other borrowings | 742076 | 1082969 | 4169776 | 5994821 | 957868 | 711705 | 3149943 | 4819516 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 507440 | 993931 | 1877576 | 3378947 | 684932 | 495482 | 1872155 | 3052569 |
| &nbsp;&nbsp;&nbsp;U.F. | 234636 | 89038 | 2292200 | 2615874 | 272936 | 216223 | 1277788 | 1766947 |
| Non-current lease liabilities | 98028 | 83634 | 777575 | 959237 | 104578 | 70490 | 497071 | 672139 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 34671 | 22517 | 72024 | 129212 | 26402 | 19943 | 74316 | 120661 |
| &nbsp;&nbsp;&nbsp;Euros | 159 | 54 | - | 213 | 174 | 121 | - | 295 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 32098 | 43376 | 702609 | 778083 | 36290 | 34477 | 420011 | 490778 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 504 | 45 | - | 549 | 494 | 29 | - | 523 |
| &nbsp;&nbsp;&nbsp;Other currencies | 257 | - | - | 257 | 49 | - | - | 49 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 20396 | 13171 | - | 33567 | 32934 | 10304 | - | 43238 |
| &nbsp;&nbsp;&nbsp;U.F. | 9943 | 4471 | 2942 | 17356 | 8235 | 5616 | 2744 | 16595 |
| Non-current payable | 53713 | - | - | 53713 | 35310 | - | - | 35310 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 24952 | - | - | 24952 | 23942 | - | - | 23942 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 19558 | - | - | 19558 | 3266 | - | - | 3266 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 9203 | - | - | 9203 | 8102 | - | - | 8102 |
| Non- current accounts payable to related companies | 15821 | 612 | 7491 | 23924 | 13655 | 7581 | 4971 | 26207 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 15821 | 612 | 7491 | 23924 | 13655 | 7581 | 4971 | 26207 |
| Other long-term provisions | 34618 | 114 | 3856 | 38588 | 29155 | 3966 | - | 33121 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 23482 | - | - | 23482 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Brazilian real | 2909 | 114 | 3856 | 6879 | 2819 | 3966 | - | 6785 |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 2803 | - | - | 2803 | 26294 | - | - | 26294 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 5424 | - | - | 5424 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Chilean pesos | - | - | - | - | 42 | - | - | 42 |
| Deferred tax liabilities | 999927 | 71569 | 478561 | 1550057 | 922585 | 72859 | 474068 | 1469512 |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 986295 | 67719 | 453887 | 1507901 | 916756 | 72859 | 453471 | 1443086 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 1176 | 3850 | 24674 | 29700 | 1048 | - | 20597 | 21645 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 7297 | - | - | 7297 | 4781 | - | - | 4781 |
| &nbsp;&nbsp;&nbsp;Other currencies | 5159 | - | - | 5159 | - | - | - | - |
| Current tax liabilities, non-current | 7256 | - | - | 7256 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;U.S. dollar | 4255 | - | - | 4255 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 3001 | - | - | 3001 | - | - | - | - |
| Non-current provisions for employee benefits | 87359 | - | - | 87359 | 77634 | - | - | 77634 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 1574 | - | - | 1574 | 1211 | - | - | 1211 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 85785 | - | - | 85785 | 76423 | - | - | 76423 |
| Other non-current non-financial liabilities | 30288 | - | - | 30288 | 36579 | 433 | - | 37012 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 29506 | - | - | 29506 | 35642 | 433 | - | 36075 |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 65 | - | - | 65 | 64 | - | - | 64 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 717 | - | - | 717 | 873 | - | - | 873 |

---

The table below sets forth the subsidiaries that have determined a functional currency other than the U.S. dollar as follows:

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| | | |
|:---|:---|:---|
| Subsidiary | Country | Functional currency |
| Altovento SpA. | Chile | Chilean pesos |
| Arauco Canada Ltd.  | Canada | Canadian dollar |
| Arauco do Brasil S.A.  | Brazil | Brazilian real |
| Arauco Empreendimentos Florestais MS Ltda.  | Brazil | Brazilian Real  |
| Arauco Industria de Mexico, S.A. de C.V.  | Mexico | Mexican pesos |
| Arauco Industria de Paineis S.A.  | Brazil | Brazilian real |
| Arauco Participações Florestais Ltda.  | Brazil | Brazilian real |
| Araucomex Servicios, S.A. de C.V.  | Mexico | Mexican pesos |
| Consorcio Protección Fitosanitaria Forestal S.A.  | Chile | Chilean pesos |
| E2E SpA. | Chile | Chilean pesos |
| Leasing Forestal S.A.  | Argentina | Argentine pesos |
| Mahal Empreendimentos e Participações S.A.  | Brazil | Brazilian real |
| Novo Oeste Gestao de Ativos Florestais S.A.  | Brazil | Brazilian real |
| Parque Eólico Girasol SpA.  | Chile | Chilean pesos |
| Parque Eólico El Jazmín SpA.  | Chile | Chilean pesos |
| Parque Eólico El Trébol SpA.  | Chile | Chilean pesos |
| Parque Eólico Hortensias SpA.  | Chile | Chilean pesos |
| Parque Eólico Las Calas SpA.  | Chile | Chilean pesos |
| Parque Eólico Las Dalias SpA.  | Chile | Chilean pesos |
| Parque Eólico Las Fresias SpA.  | Chile | Chilean pesos |
| Parque Eólico Lavanda SpA.  | Chile | Chilean pesos |
| Parque Eólico Los Cardos SpA.  | Chile | Chilean pesos |
| Parque Eólico Tulipanes SpA.  | Chile | Chilean pesos |
| Tecverde S.A. | Brazil | Brazilian real |

---

On January 1, 2025, Arauco Celulose do Brasil S.A. and Arauco MS Participações S.A. changed their functional currency from the Brazilian real to the U.S. dollar. In accordance with IAS 21, this change is based on the U.S. dollar becoming the currency that primarily reflects the economic environment in which the entity operates, particularly with respect to revenue, expenses, investments, and financing. The change has been applied prospectively from the aforementioned date, converting the balances of assets, liabilities, and equity at the exchange rate in effect on that date. This change had no effect on the results of the period or on the accumulated translation reserves.

The table below shows a detail per company of the effect in the period of the reserve of exchange differences on translation:

---

| | | |
|:---|:---|:---|
|  | January – December | January – December |
|  | 2025 | 2024 |
|  | ThU.S.$ | ThU.S.$ |
| Arauco Canada Limited. | 10834 | (18206) |
| Arauco Do Brasil S.A. | 42563 | (31336) |
| Arauco Florestal Arapoti S.A. (\*) | - | 101277 |
| Arauco Forest Brasil S.A. (\*) | - | 287217 |
| Arauco Industria de Mexico, S.A de C.V. | 42883 | (56079) |
| Arauco MS Participações S.A. (\*\*) | - | (116742) |
| Arauco Participações Florestais Ltda. | 4296 | - |
| Mahal Empreendimentos e Participações S.A. | 9400 | - |
| Sonae Arauco S.A. | 26982 | (12733) |
| Others (\*\*) | (3393) | (28301) |
| Total reserve of exchange differences on translation | 133565 | 125097 |

---

(\*) In July 2024, these companies were sold.

(\*\*) On January 1, 2025, Arauco Celulose do Brasil S.A. and Arauco MS Participações S.A. changed their functional currency from the Brazilian real to the U.S. dollar. Arauco Celulose do Brasil S.A. is presented in the line Others.

Effect of foreign exchange rates changes

---

| | | | |
|:---|:---|:---|:---|
|  | January - December | January - December | January - December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Exchange differences recognized in profit or loss, except for those arising on financial instruments measured at fair value through profit or loss | (53356) | (3126) | (35419) |
| Reserve of exchange differences on translation (with non-controlling interests) | 133703 | 259895 | 121470 |

---

**NOTE 12. BORROWING COSTS** 

Arauco capitalizes interest at effective rate on current investment projects, that are carried out with debts.

The interest cost that have been capitalized mainly associated with the construction project of the pulp mill known as the Sucuriú Project.

---

| | | |
|:---|:---|:---|
|  | January – December | January – December |
|  | 2025 | 2024 |
|  | ThU.S.$ | ThU.S.$ |
| Interest cost capitalized, property, plant and equipment |  |  |
| Capitalization rate of interest cost capitalized, property, plant and equipment | 4.99% | 4.55% |
| Amount of the interest cost capitalized, property, plant and equipment | 45508 | 2131 |

---

NOTE 13. RELATED PARTIES

Related party disclosures

Related parties are those entities defined in IAS 24 and under the rules of the Chilean Commission for the Financial Market and the Chilean Corporations Law.

The receivable and payable amounts among related parties at the end of each period correspond to commercial and financing transactions denominated in Chilean pesos, U.S. dollars and Brazilian real, where collection or payment deadlines are shown in the following tables and in general do not bear interest, except for financing transactions.

As of the date of these consolidated financial statements, the main transactions with related parties are related to fuel purchases with Copec S.A. and sodium chlorate purchases at EKA Chile S.A.

As of the date of these consolidated financial statements, there were neither provisions for accounts of doubtful collection nor any guarantees granted or received related to the balances with related parties.

Name of group's main shareholders

The ultimate shareholders of Arauco, directly and indirectly, are Mr. Roberto Angelini Rossi and Mrs. Patricia Angelini Rossi.

Name of the intermediate controlling entity that produces consolidated financial statements for public use

Empresas Copec S.A.

Key management personnel compensation

Compensation to key management personnel, including directors, managers and deputy managers, consist of a fixed monthly salary, and managers and deputy managers also receive an annual bonus subject to the results of the Company and the fulfillment of goals of the business as well as individual performance.

Pricing strategy terms and conditions corresponding to transactions with related parties

Transactions carried out with related parties are intended to contribute to the corporate interest, are adjusted in price, terms and conditions to those prevailing in the market at the time of approval, and meet the requirements and procedures set forth in the law.

The table below sets forth information about the relationship between the parent company and its subsidiaries

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | % Ownership interest | % Ownership interest | % Ownership interest | % Ownership interest | % Ownership interest | % Ownership interest |
|  |  |  | Functional | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
| ID N° | Company Name | Country | Currency | Direct | Indirect | Total | Direct | Indirect | Total |
| 77630621-5 | Agrícola Ranquillón SpA | Chile | U.S. Dollar | - | 98.64296 | 98.64296 | - | 98.64273 | 98.64273 |
| 77630618-5 | Agrícola San Carlos SpA | Chile | U.S. Dollar | - | 99.94839 | 99.94839 | - | 99.94839 | 99.94839 |
| 77630623-1 | Agrícola Santa Emilia SpA | Chile | U.S. Dollar | - | 99.94839 | 99.94839 | - | 99.94839 | 99.94839 |
| 77630625-8 | Agrícola Santa Isabel SpA (6) | Chile | U.S. Dollar | - | - | - | - | 99.94839 | 99.94839 |
| 77630626-6 | Agrícola Siberia SpA | Chile | U.S. Dollar | - | 98.64296 | 98.64296 | - | 98.64273 | 98.64273 |
| 78115725-2 | Altovento SpA. (3) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | - | - |
| - | Arauco Argentina S.A. | Argentina | U.S. Dollar | 9.97070 | 90.00940 | 99.98010 | 9.97070 | 90.00940 | 99.98010 |
| - | Arauco Australia Pty Ltd. | Australia | U.S. Dollar | - | 99.99898 | 99.99898 | - | 99.99898 | 99.99898 |
| 96547510-9 | Arauco Bioenergía SpA | Chile | U.S. Dollar | 98.00000 | 1.99897 | 99.99897 | 98.00000 | 1.99897 | 99.99897 |
| - | Arauco Canada Ltd. | Canada | Canadian Dollar | - | 99.99911 | 99.99911 | - | 99.99911 | 99.99911 |
| - | Arauco Celulose do Brasil S.A. | Brazil | Brazilian Real | - | 99.99899 | 99.99899 | - | 99.99902 | 99.99902 |
| - | Arauco Colombia S.A. | Colombia | U.S. Dollar | 1.47783 | 98.52042 | 99.99825 | 1.47783 | 98.52042 | 99.99825 |
| - | Arauco do Brasil S.A. | Brazil | Brazilian Real | 1.06807 | 98.93105 | 99.99912 | 1.06807 | 98.93105 | 99.99912 |
| - | Arauco Empreendimentos Florestais MS Ltda. (4) | Brazil | Brazilian Real | - | 99.99907 | 99.99907 | - | - | - |
| - | Arauco Europe Cooperatief U.A. | The Netherlands | U.S. Dollar | 0.25001 | 99.74897 | 99.99898 | 0.25003 | 99.74895 | 99.99898 |
| - | Arauco Industria de México, S.A.de C.V. | Mexico | Mexican pesos | - | 99.99910 | 99.99910 | - | 99.99910 | 99.99910 |
| - | Arauco Industria de Paineis S.A. | Brazil | Brazilian Real | - | 99.99912 | 99.99912 | - | 99.99912 | 99.99912 |
| - | Arauco Middle East DMCC. | United Arab Emirates | U.S. Dollar | - | 99.99898 | 99.99898 | - | 99.99898 | 99.99898 |
| - | Arauco North America, Inc. | United States | U.S. Dollar | 0.00010 | 99.99901 | 99.99911 | 0.00010 | 99.99901 | 99.99911 |
| - | Arauco MS Participações S.A. | Brazil | Brazilian Real | 8.52667 | 91.47240 | 99.99907 | 8.52667 | 91.47240 | 99.99907 |
| - | Arauco Participações Florestais Ltda. | Brazil | Brazilian Real | - | 99.99907 | 99.99907 | - | 99.99907 | 99.99907 |
| - | Arauco Perú S.A. | Peru | U.S. Dollar | 0.00126 | 99.99772 | 99.99898 | 0.00126 | 99.99772 | 99.99898 |
| - | Arauco Porto Brasil S.A. (3) | Brazil | U.S. Dollar | - | 99.99807 | 99.99807 | - | - | - |
| - | Arauco Pulp Limited. (5) | United Kingdom | U.S. Dollar | - | - | - | - | 99.99898 | 99.99898 |
| - | Arauco Ventures Limited. | United Kingdom | U.S. Dollar | - | 99.99898 | 99.99898 | - | 99.99898 | 99.99898 |
| - | Arauco Wood (China) Company Limited. | China | U.S. Dollar | - | 99.99898 | 99.99898 | - | 99.99898 | 99.99898 |
| - | Arauco Wood Limited. | United Kingdom | U.S. Dollar | 12.63126 | 87.36785 | 99.99911 | 12.63126 | 87.36785 | 99.99911 |
| - | Araucomex S.A. de C.V. | Mexico | U.S. Dollar | 0.00050 | 99.99861 | 99.99911 | 0.00050 | 99.99861 | 99.99911 |
| - | Araucomex Servicios, S.A. de C.V. | Mexico | Mexican pesos | 0.33333 | 99.66578 | 99.99911 | 0.33333 | 99.66578 | 99.99911 |
| 96657900-5 | Consorcio Protección Fitosanitaria Forestal S.A. | Chile | Chilean Pesos | - | 56.83117 | 56.83117 | - | 56.83115 | 56.83115 |
| 76869577-0 | E2E SpA | Chile | Chilean Pesos | 1.00000 | 98.99861 | 99.99861 | 1.00000 | 98.99861 | 99.99861 |
| 85805200-9 | Forestal Arauco S.A. | Chile | U.S. Dollar | 99.94839 | - | 99.94839 | 99.94839 | - | 99.94839 |
| 93838000-7 | Forestal Cholguán S.A. | Chile | U.S. Dollar | - | 98.64296 | 98.64296 | - | 98.64273 | 98.64273 |
| 96563550-5 | Inversiones Arauco Internacional Ltda. | Chile | U.S. Dollar | 98.01862 | 1.98036 | 99.99898 | 98.01862 | 1.98036 | 99.99898 |
| 79990550-7 | Investigaciones Forestales Bioforest SpA | Chile | U.S. Dollar | 1.00000 | 98.94891 | 99.94891 | 1.00000 | 98.94891 | 99.94891 |
| - | Leasing Forestal S.A. | Argentina | Argentine pesos | - | 99.98010 | 99.98010 | - | 99.98010 | 99.98010 |
| 76860724-9 | Lemu Earth SpA | Chile | U.S. Dollar | - | 96.36917 | 96.36917 | - | 96.36917 | 96.36917 |
| - | Lemu Global Limited. | United Kingdom | Pound Sterlin | - | 96.36917 | 96.36917 | - | 96.36917 | 96.36917 |
| - | Lemu Inc. | United States | U.S. Dollar | - | 96.36917 | 96.36917 | - | 96.36917 | 96.36917 |
| - | Maderas Arauco Costa Rica S.A. | Costa Rica | U.S. Dollar | - | 99.99898 | 99.99898 | - | 99.99898 | 99.99898 |
| 96510970-6 | Maderas Arauco S.A. | Chile | U.S. Dollar | - | 99.99860 | 99.99860 | - | 99.99860 | 99.99860 |
| - | Mahal Empreendimentos e Participações S.A. | Brazil | Brazilian Real | - | 99.99907 | 99.99907 | - | 99.99907 | 99.99907 |
| - | Novo Oeste Gestão de Ativos Florestais S.A. | Brazil | Brazilian Real | - | 99.99907 | 99.99907 | - | 99.99907 | 99.99907 |
| 77744968-0 | Parque Eólico Girasol SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77985297-0 | Parque Eólico El Jazmín SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 78075458-3 | Parque Eólico El Trébol SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | - | - |
| 77945814-8 | Parque Eólico Hortensias SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77,869,168-K | Parque Eólico Las Calas SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77744909-5 | Parque Eólico Las Dalias SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77,744,915-K | Parque Eólico Las Fresias SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77,945,827-K | Parque Eólico Lavanda SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77173565-7 | Parque Eólico Los Cardos SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 77,869,171-K | Parque Eólico Tulipanes SpA. (1) | Chile | Chilean Pesos | - | 99.94839 | 99.94839 | - | 50.00000 | 50.00000 |
| 76375371-9 | Servicios Aéreos Forestales Ltda. | Chile | U.S. Dollar | 14.47369 | 85.52544 | 99.99913 | 14.47369 | 85.52544 | 99.99913 |
| 96,637,330-K | Servicios Logísticos Arauco SpA | Chile | U.S. Dollar | 45.00000 | 54.99923 | 99.99923 | 45.00000 | 54.99923 | 99.99923 |
| - | Tecverde S.A. (2) | Brazil | Brazilian Real | - | 91.11312 | 91.11312 | - | 89.39060 | 89.39060 |
| - | Woodaffix, LLC. | United States | U.S. Dollar | - | 99.99911 | 99.99911 | - | 99.99911 | 99.99911 |

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(1) Companies acquired in April 2025.

(2) Company changed its corporate name from "Tecverde Engenharia S.A." to "Tecverde S.A."

(3) Companies founded in June 2025.

(4) Company founded in September 2025.

(5) Company dissolved in September 2025.

(6) Company merged in September 2025.

The companies in the table below are classified as joint operations in accordance with IFRS 11. The assets, liabilities, income and expenses are recorded in relation to the Company's ownership percentage as specified in the contractual arrangement.

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| | | | | |
|:---|:---|:---|:---|:---|
| Company Name | Country | Country | Functional currency | Functional currency |
| Celulosa y Energía Punta Pereira S.A. |  | Uruguay |  | U.S. dollar  |
| El Esparragal Asociación Agraria de R.L. |  | Uruguay |  | U.S. dollar |
| Eufores S.A. |  | Uruguay |  | U.S. dollar |
| Forestal Cono Sur S.A. |  | Uruguay |  | U.S. dollar |
| Ongar S.A. |  | Uruguay |  | U.S. dollar |
| Stora Enso Uruguay S.A. |  | Uruguay |  | U.S. dollar |
| Terminal Logística e Industrial M'Bopicuá S.A. |  | Uruguay |  | U.S. dollar |
| Zona Franca Punta Pereira S.A. |  | Uruguay |  | U.S. dollar  |

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According to significant restrictions on the ability of subsidiaries to transfer funds to Arauco, in the form of cash dividends or repayment of borrowings and/or advances, we state the following:

Long-term debt with related entities - mutual agreement with Arauco Argentina S.A.

On June 5, 2017, Arauco signed a mutual agreement with its subsidiary Arauco Argentina S.A., pursuant to which this subsidiary received an amount of U.S.$250,000,000, which accrues an interest at the SOFR interest rate for 180 days plus a fixed spread of 5.20% and an adjustment of 0.42826% resulting from the replacement of LIBOR rates in dollars with SOFR rates (this according to the "Selections and Recommendations" of the "Alternative Reference Rates Committee" or ARRC), with payments every six months on June 1 and December 1 of each year.

Since 2020, the Central Bank of the Argentine Republic (BCRA) established certain foreign exchange controls, preventing Arauco Argentina S.A. from repaying the amount of ThU.S.$160,000 owed under the mutual agreement described above which matured on June 1, 2022.

On July 14, 2022, Arauco Argentina S.A. paid ThU.S.$6,000 of the amount owed under the mutual agreement described above, remaining to pay ThU.S.$154,000 of capital as of the date of these consolidated financial statements.

Key management personnel compensation and redundancy benefits

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| | | | |
|:---|:---|:---|:---|
|  | January - December | January - December | January - December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Salaries and bonuses | 64611 | 59527 | 76329 |
| Per diem compensation to members of the Board of Directors | 3037 | 2756 | 2630 |
| Termination benefits | 3320 | 2590 | 4647 |
| Total | 70968 | **64873**  | **83606**  |

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Related party receivables, current

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nature of |  |  |  | 12-31-2025 | 12-31-2024 |
| Name of related party | Tax ID No. | relationship | Country | Currency | Maturity | ThU.S.$ | ThU.S.$ |
| Forestal Mininco S.A. | 91440000-7 | Common stockholder | Chile | Chilean pesos | - | - | 2 |
| Eka Chile S.A. | 99500140-3 | Joint venture | Chile | Chilean pesos | - | - | 2574 |
| Colbún S.A. | 96505760-9 | Common stockholder | Chile | Chilean pesos | - | - | 67 |
| Alxar Internacional SpA. | 76879169-4 | Subsidiary of the controlling parent | Chile | Chilean pesos | 30 days | 42 | 42 |
| Bioenergías Forestales SpA. | 76188197-3 | Common stockholder | Chile | Chilean pesos | - | - | 1 |
| Compañía Puerto de Coronel S.A. | 79895330-3 | Subsidiary of an associate | Chile | U.S. dollar | - | - | 5646 |
| EMOAC SpA. | 76208888-6 | Subsidiary of the controlling parent | Chile | Chilean pesos | 30 days | 69 | 15 |
| Agrícola San Gerardo SpA | 77017167-9 | Joint venture | Chile | Chilean pesos | 30 days | 331 | - |
| Softys Argentina S.A. | - | Common stockholder | Argentina | Argentine pesos | - | - | 1812 |
| TreeCo, Inc. | - | Joint venture | United States | U.S. dollar | 30 days | 48 | - |
| TOTAL |  |  |  |  |  | **490**  | **10159**  |

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Related party payables, current

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nature of |  |  |  | 12-31-2025 | 12-31-2024 |
| Name of related party | Tax ID No. | relationship | Country | Currency | Maturity | ThU.S.$ | ThU.S.$ |
| Copec S.A. | 99520000-7 | Subsidiary of the controlling parent | Chile | Chilean pesos | 30 days | 6405 | 6196 |
| Abastible S.A. | 91806000-6 | Subsidiary of the controlling parent | Chile | Chilean pesos | 30 days | 170 | 342 |
| Eka Chile S.A. | 99500140-3 | Joint venture | Chile | Chilean pesos | 30 days | 2209 | - |
| Fundación Educacional Arauco | 71625000-8 | Parent company is founder and contributor | Chile | Chilean pesos | 30 days | 53 | 526 |
| Portaluppi, Guzmán y Bezanilla Asesorías Ltda. | 78096080-9 | Common director of controlling parent | Chile | Chilean pesos | - | - | 14 |
| Empresa Nacional de Telecomunicaciones S.A. | 92580000-7 | Common stockholder | Chile | Chilean pesos | - | - | 2 |
| Compañía Puerto de Coronel S.A. | 79895330-3 | Subsidiary of an associate | Chile | U.S. dollar | 30 days | 253 | 250 |
| Vía Limpia SpA. | 79874200-0 | Subsidiary of the controlling parent | Chile | Chilean pesos | 30 days | 39 | - |
| Copec Aviation S.A. | 96942120-8 | Joint venture of controlling parent | Chile | Chilean pesos | - | - | 4 |
| Falcão MS SPE S.A. | - | Associate | Brazil | Brazilian real | - | - | 3007 |
| Megacentro San Pedro S.A. | 76,390,430-K | Common stockholder | Chile | Chilean pesos | 30 days | 2 | - |
| Agrícola Fresno SpA | 77470229-6 | Joint venture | Chile | U.S. dollar | 30 days | 306 | 176 |
| Entel PCS Telecomunicaciones S.A. | 96806980-2 | Common stockholder | Chile | Chilean pesos | - | - | 46 |
| TOTAL |  |  |  |  |  | 9437 | 10563 |

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Related party payables, non-current

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nature of |  |  |  | 12-31-2025 | 12-31-2024 |
| Name of related party | Tax ID No. | relationship | Country | Currency | Maturity | ThU.S.$ | ThU.S.$ |
| Agrícola Fresno SpA. | 77470229-6 | Joint venture | Chile | U.S. dollar | 12-31-2054 | 8716 | 4971 |
| Agrícola Fresno SpA. | 77470229-6 | Joint venture | Chile | U.S. dollar | 12-31-2027 | 3875 | 7581 |
| TreeCo, Inc. | - | Joint venture | United States | U.S. dollar | Annual | 11333 | 13655 |
| TOTAL |  |  |  |  |  | **23924**  | **26207**  |

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Related party transactions

Purchases and other transactions

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nature of |  |  | Transaction | 12-31-2025 | 12-31-2024 | 12-31-2023 |
| Name of related party | Tax ID No. | relationship | Country | Currency | descriptions | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Abastible S.A. | 91806000-6 | Subsidiary of the controlling parent | Chile | Chilean pesos | Fuel | 4741 | 4007 | 4033 |
| Copec S.A. | 99520000-7 | Subsidiary of the controlling parent | Chile | Chilean pesos | Fuel and other | 103241 | 116465 | 168859 |
| Compañía Puerto de Coronel S.A. | 79895330-3 | Subsidiary of an associate | Chile | Chilean pesos | Transport, stowage and port services | 4163 | 9962 | 17008 |
| EKA Chile S.A. | 99500140-3 | Joint venture | Chile | Chilean pesos | Sodium chlorate | 51145 | 47046 | 50815 |
| Portaluppi, Guzman y Bezanilla Abogados Ltda. | 78096080-9 | Common director of controlling parent | Chile | Chilean pesos | Legal services | - | 617 | 1065 |
| Entel PCS Telecomunicaciones S.A. | 96806980-2 | Common stockholder | Chile | Chilean pesos | Telephone services | - | 656 | 922 |
| Colbún S.A. | 96505760-9 | Common stockholder | Chile | Chilean pesos | Electrical Power | - | 422 | 1.187 |
| Bionergías Forestales SpA. | 76188197-3 | Common stockholder | Chile | Chilean pesos | Electrical Power | - | 43 | 202 |
| Megacentro San Pedro S.A. | 76,390,430-K | Common stockholder | Chile | Chilean pesos | Lease of warehouses and parking spaces | 350 | - | - |
| Woodtech S.A. | 76724000-7 | Associate of controlling parent | Chile | Chilean pesos | Wood volumen measurement services | 820 | 747 | 1.283 |
| Servicios Corporativos Sercor S.A. | 96925430-1 | Associate | Chile | Chilean pesos | Other purchases | 207 | 215 | 215 |
| Vía Limpia SPA | 79874200-0 | Subsidiary of the controlling parent | Chile | Chilean pesos | Waste management service and other purchases | 481 | 336 | 280 |

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Sales and other transactions

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nature of |  |  | Transaction | 12-31-2025 | 12-31-2024 | 12-31-2023 |
| Name of related party | Tax ID No. | relationship | Country | Currency | Descriptions | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Abastible S.A.  | 91806000-6  | Subsidiary of the controlling parent <br>| Chile  | Chilean pesos  | Electrical power and others  | 269 | 124 | 118 |
| Copec S.A. | 99520000-7 | Subsidiary of the controlling parent | Chile | Chilean pesos | Wood | 219 | 73 | - |
| Colbún S.A. | 96505760-9 <br>| Common stockholder  | Chile  | Chilean pesos  | Electrical power and others  | - | 841 | 430 |
| EKA Chile S.A. | 99500140-3 | Joint venture | Chile | Chilean pesos | Electrical power | 27225 | 23420 | 23162 |
| Fundación Educacional Arauco | 71625000-8 | Parent company is founder and contributor | Chile | Chilean pesos | IT and administrative services | 238 | 196 | 226 |
| Entel PCS Telecomunicaciones S.A. | 96806980-2 | Common stockholder | Chile | Chilean pesos | Leasings | - | 469 | 405 |
| Cartulinas CMPC S.A. | 96731890-6 | Common stockholder | Chile | Chilean pesos | Pulp | - | - | 222 |
| Softys Chile SpA. | 96529310-8 | Common stockholder | Chile | Chilean pesos | Pulp | - | - | 782 |
| Forestal Mininco SpA. | 91440000-7 | Common stockholder | Chile | Chilean pesos | Pest control service and other sales | - | 175 | 441 |
| Compañía Puerto de Coronel S.A. | 79895330-3 | Subsidiary of an associate | Chile | Chilean pesos | Other sales | 130 | 241 | 294 |
| EMOAC SpA | 76208888-6 | Subsidiary of the controlling parent | Chile | Chilean pesos | Electrical Power | 1790 | 800 | 2125 |
| Softys Argentina S.A. | - | Common stockholder | Argentina | Argentine pesos | Pulp | - | 10242 | 15534 |

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Other transactions (loans granted and capital contributions)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nature of |  |  | Transaction | 12-31-2025 | 12-31-2024 | 12-31-2023 |
| Name of related party | Tax ID No. | relationship | Country | Currency | descriptions | ThU.S.$ | ThU.S.$ | ThU.S. $ |
| Falcão MS SPE S.A. | - | Associate | Brazil | Brazilian real | Capital contribution | 42113 | 11395 | 23553 |
| Agrícola Fresno SpA | 77470229-6 | Joint venture | Chile | U.S. dollar | Capital contribution | 18812 | 12066 | 1509 |
| Parque Eólico Ovejera Sur SpA. | 76839949-2 | Joint venture | Chile | Chilean pesos | Capital contribution | 234 | 296 | 222 |
| Sonae S.A. | - | Joint venture | Portugal | Euros | Capital contribution | - | 26240 | - |
| TreeCo, Inc. | - | Joint venture | United States | U.S. dollar | Issuance of new shares | - | - | 15400 |
| TreeCo, Inc. | - | Joint venture | United States | U.S. dollar | Capital contribution | - | - | 9230 |
| TreeCo, Inc. | - | Joint venture | United States | U.S. dollar | Borrowing capitalization | - | - | 1770 |
| E2E SpA. | 76879577-0 | Joint venture (\*) | Chile | Chilean pesos | Capital contribution | - | - | 5254 |
| Compañía Puerto de Coronel S.A. | 79895330-3 | Subsidiary of an associate | Chile | Chilean pesos | Capital contribution | 5745 | - | - |
| Compañía Puerto de Coronel S.A. | 79895330-3 | Subsidiary of an associate | Chile | Chilean pesos | Borrowing  | 101 | 5643 | - |
| Tecverde S.A. | - | Subsidiary of a joint venture (\*) | Brazil | U.S. dollar | Borrowing | - | - | 2668 |
| E2E SpA. | 76879577-0 | Joint venture (\*) | Chile | Chilean pesos | Borrowing | - | - | 537 |

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(\*) In March 2023, Arauco acquired the remaining 50% of share in E2E SpA., gaining control of the company and indirectly over Tecverde S.A., which is E2E SpA. subsidiary.

NOTE 14. INVESTMENTS IN SUBSIDIARIES

The main operations carried out as of December 31, 2025 and 2024 are reported below:

On July 16, 2024, Arauco transferred all the shares and interests held by Arauco in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., which own assets mainly in the state of Paraná, Brazil. The sale price, which amounted to ThU.S.$1,168,161, was paid on that date. Subsequently, on October 17, 2024, an additional payment was made of ThU.S.$4,613 due to customary price adjustments at the transaction's closing. The total amount received by Arauco after taxes was ThU.S.$971,097, which generated a profit of ThU.S.$209,497 after taxes.

The sales of the above-mentioned subsidiaries and associate resulted in the reclassification of loss on reserve of exchange differences on translation for ThU.S.$500,102 (net of deferred taxes in the amount of ThU.S.$135,171) from other comprehensive income to the statements of profit and loss as part of the gain on sales of subsidiaries and associates in other income.

NOTE 15. INVESTMENTS IN ASSOCIATES

As of December 31, 2025 and 2024, these are the main movements of investments in associates to report:

In March 2025, Arauco made a capital contribution to Inversiones Puerto Coronel S.A. through the capitalization of loans receivable from Compañía Puerto de Coronel S.A., in the amount of ThU.S.$5,745.

During 2025, Arauco made a capital contribution to Falcão MS SPE S.A. of ThR$230,039 (equivalent to ThU.S.$42,113), through its Brazilian subsidiary, Arauco Participações Florestais Ltda. In 2024, Arauco also made a capital contribution to Falcão MS SPE S.A. of ThR$63,488 (equivalent to ThU.S.$11,395).

The following tables set forth information about investments in associates.

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| | | |
|:---|:---|:---|
| Name  | Inversiones Puerto Coronel S.A. | Inversiones Puerto Coronel S.A. |
| Country  | Chile | Chile |
| Functional currency  | U.S. dollar | U.S. dollar |
| Corporate purpose  | Investments in movables and real estate, acquisition of companies, securities and investment instruments, investment management and development and/or participation in all kinds of businesses and companies related to industrial, shipping, forestry and commercial activities. | Investments in movables and real estate, acquisition of companies, securities and investment instruments, investment management and development and/or participation in all kinds of businesses and companies related to industrial, shipping, forestry and commercial activities. |
| Ownership interest (%) | 50.0000% | 50.0000% |
|  | 12-31-2025 | 12-31-2024 |
| Carrying amount accounted for using equity method | ThU.S.$43,723 | ThU.S.$35,111 |

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| | | |
|:---|:---|:---|
| Name  | Servicios Corporativos Sercor S.A. | Servicios Corporativos Sercor S.A. |
| Country  | Chile | Chile |
| Functional currency  | Chilean pesos | Chilean pesos |
| Corporate purpose  | Consulting services related to business management to Boards of Directors and Senior Management of all Arauco's entities. | Consulting services related to business management to Boards of Directors and Senior Management of all Arauco's entities. |
| Ownership interest (%) | 20.0000% | 20.0000% |
|  | 12-31-2025 | 12-31-2024 |
| Carrying amount accounted for using equity method | ThU.S.$393 | ThU.S.$310 |

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| | | |
|:---|:---|:---|
| Name  | Genómica Forestal S.A. | Genómica Forestal S.A. |
| Country  | Chile | Chile |
| Functional currency  | Chilean pesos | Chilean pesos |
| Corporate purpose  | Developing forestry genomics, through the use of biotechnological, molecular and bioinformatics tools with the purpose of strengthening genetic programs so as to improve the competitive position of the Chilean forestry industry for priority tree species. | Developing forestry genomics, through the use of biotechnological, molecular and bioinformatics tools with the purpose of strengthening genetic programs so as to improve the competitive position of the Chilean forestry industry for priority tree species. |
| Ownership interest (%) | 25.0000% | 25.0000% |
|  | 12-31-2025 | 12-31-2024 |
| Carrying amount accounted for using equity method | ThU.S.$9 | ThU.S.$9 |

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| | | |
|:---|:---|:---|
| Name  | Falcão MS SPE S.A. | Falcão MS SPE S.A. |
| Country  | Brazil | Brazil |
| Functional currency  | Brazilian real | Brazilian real |
| Corporate purpose  | Management of land for leases to related parties. | Management of land for leases to related parties. |
| Ownership interest (%) | 49.0000% | 49.0000% |
|  | 12-31-2025 | 12-31-2024 |
| Carrying amount accounted for using equity method | ThU.S.$73,999 | ThU.S.$41,352 |

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---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Total investments in associates accounted for using equity method | ThU.S.$118,124 | ThU.S.$76,782 |

---

Summarized financial information of associates

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Inversiones<br>Puerto | Serv.Corporativos | Falcão | Genómica |  |
|  | Coronel S.A. | Sercor S.A. | MS SPE S.A. | Forestal S.A. | Total |
| 12-31-2025 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current assets of associates | 11485 | 7907 | 7368 | 10 | 26770 |
| Non-current assets of associates | 89264 | 5068 | 258600 | 62 | 352994 |
| Total of associates | 100749 | 12975 | 265968 | 72 | 379764 |
| Current liabilities of associates | 11539 | 6770 | 40293 | - | 58602 |
| Non-current liabilities of associates | - | 4241 | 53176 | 35 | 57452 |
| Equity | 89210 | 1964 | 172499 | 37 | 263710 |
| Total of associates | 100749 | 12975 | 265968 | 72 | 379764 |
| 12-31-2025 |  |  |  |  |  |
| Income | - | 6190 | 13036 | - | 19226 |
| Other income / expenses | 8997 | (5971) | (1578) | - | 1448 |
| Net profit or loss (continuing operations) of associates | 8997 | 219 | 11458 | - | 20674 |
| Other comprehensive income | (683) | - | - | - | (683) |
| Comprehensive income | 8314 | 219 | 11458 | - | 19991 |
| Dividends received | - | - | 9368 | - | 9368 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Inversiones<br>Puerto | Serv.Corporativos | Falcão | Genómica |  |
|  | Coronel S.A. | Sercor S.A. | MS SPE S.A. | Forestal S.A. | Total |
| 12-31-2024 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current assets of associates | 1 | 4616 | 10574 | 10 | 15201 |
| Non-current assets of associates | 72041 | 2465 | 145212 | 62 | 219780 |
| Total of associates | 72042 | 7081 | 155786 | 72 | 234981 |
| Current liabilities of associates | 54 | 3838 | 11667 | - | 15559 |
| Non-current liabilities of associates | - | 1693 | 59474 | 35 | 61202 |
| Equity | 71988 | 1550 | 84645 | 37 | 158220 |
| Total of associates | 72042 | 7081 | 155786 | 72 | 234981 |
| 12-31-2024 |  |  |  |  |  |
| Income | - | 5158 | 10620 | - | 15778 |
| Other income / expenses | (57152) | (5614) | (849) | - | (63615) |
| Net profit or loss (continuing operations) of associates | (57152) | (456) | 9771 | - | (47837) |
| Other comprehensive income | 889 | - | - | - | 889 |
| Comprehensive income | (56263) | (456) | 9771 | - | (46948) |
| Dividends received | - | - | - | - | - |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Inversiones<br>Puerto Coronel S.A. | Serv.Corporativos<br>Sercor S.A. | Florestal<br>Vale do<br>Corisco S.A. | **Falcão MS**<br>SPE S.A. | Total |
| 12-31-2023 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | - | 4996 | 10533 | - | 15529 |
| Other income / expenses | 2095 | (4360) | (4476) | 238 | (6503) |
| Net profit or loss (continuing operations) of associates | 2095 | 636 | 6057 | 238 | 9026 |
| Other comprehensive income | - | - | - | - | - |
| Comprehensive income | 2095 | 636 | 6057 | 238 | 9026 |
| Dividends received | - | - | 2187 | - | 2187 |

---

Reconciliation of Investment in Associates and Joint Ventures

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Opening balance as of January 1 | 406611 | 423611 |
| Changes  |  |  |
| Investment in associates, additions (1) | 47858 | 11395 |
| Investment in joint ventures, additions (2) | 19046 | 38607 |
| Disposals, investment in associates and joint ventures (4) | (326) | - |
| Share of profit (loss) in investment in associates | (245) | (24075) |
| Share of profit (loss) in investment in joint ventures | (3620) | (23142) |
| Dividends received | (12418) | (3000) |
| Increase (decrease) in foreign exchange currency on translation of associates and joint ventures | 33654 | (22658) |
| Acquisitions through business combinations (3) | (5) | - |
| Other increase (decrease) in investment in associates and joint ventures | (7013) | 5873 |
| Total changes | 76931 | (17000) |
| Closing balance | 483542 | 406611 |

---

Year 2025:

(1) Contributions made in investments in associates:

-In March, Celulosa Arauco y Constitución S.A. made capital contributions to the company Inversiones Puerto Coronel S.A. through the capitalization of loans receivable with Compañía Puerto de Coronel S.A. for ThU.S.$5,745.

-Arauco Participações Florestais Ltda. made capital contributions to the company Falcão MS SPE S.A. for ThR$230,039 that is equivalent to ThU.S.$42,113 for 230,039,467 shares.

(2) Contributions made in joint ventures:

-Forestal Arauco S.A., made contributions of non-monetary assets to Agrícola Fresno SpA amounting to ThU.S.$18,812.

-Arauco Bioenergía SpA., made capital contributions to Parque Eólico Ovejera Sur SpA. amounting to ThCLP$220,000 equivalents to ThU.S.$234.

(3) Forestal Arauco S.A., acquired the remaining 50% of the shares in the following companies: Parque Eólico Girasol Spa., Parque Eólico Las Dalias SpA., Parque Eólico Las Fresias SpA., Parque Eólico El Trébol SpA., Parque Eólico Los Cardos SpA., Parque Eólico Las Calas SpA., Parque Eólico Tulipanes SpA., Parque Eólico Hortensias SpA., Parque Eólico Lavanda SpA., y Parque Eólico Jazmin SpA., the payment was for Th$500 equivalent to ThU.S.$0.5 for 500 shares in each entity. Subsequently, Forestal Arauco S.A. sold 100% of these shares to Altovento SpA.

(4) Forestal Arauco S.A., during December 2025, decreased its capital investment in Agrícola San Gerardo SpA by ThCLP$300,000 in cash, equivalent toThU.S.$326.

Year 2024:

(1) Arauco Participações Florestais Ltda. Made a capital contribution to Falcão MS SPE S.A., for ThR$63,488 that is equivalent to ThU.S.$11,395 for 63,488,424 shares.

(2) Contributions made in joint ventures:

-Forestal Arauco S.A., made contributions of non-monetary assets to Agrícola Fresno SpA amounting to ThU.S.$12,066.

-Forestal Arauco S.A., made capital contributions to the following companies: Parque Eólico Girasol Spa., Parque Eólico Las Dalias SpA., Parque Eólico Las Fresias SpA., Parque Eólico Margaritas SpA., Parque Eólico Los Cardos SpA., Parque Eólico Las Calas SpA., Parque Eólico Tulipanes SpA., Parque Eólico Hortensias SpA., Parque Eólico Lavanda SpA., y Parque Eólico Jazmin SpA., for Th$500 that was equivalent to ThU.S.$0.5 for 500 shares in each entity.

-Arauco Bioenergía SpA., made capital contributions to Parque Eólico Ovejera Sur SpA. amounting to ThCLP$285,000 equivalents to ThU.S.$296, corresponding to 285 shares.

-Arauco Wood Limited, made capital contributions to Sonae Arauco S.A. for Th€ 25,000 that is equivalent to ThU.S.$26,240 for 714,286 shares.

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Carrying amount of investments in associates accounted for using equity method | 118124 | 76782 |
| Carrying amount of investments in joint ventures accounted for using equity method | 365418 | 329829 |
| Total investment accounted for using equity method | 483542 | 406611 |

---

NOTE 16. INTERESTS IN JOINT ARRANGEMENTS

Investments and contributions

The main operations carried out as of December 31, 2025 and 2024 are reported below:

On January 1, 2025, a corporate reorganization was carried out through the merger by absorption by Eufores S.A. of the companies Taurion S.A., Taurion Asociación Agraria de Responsabilidad Limitada, Monte Fresnos S.A. and Monte Fresnos Asociación Agraria de Responsabilidad Limitada, prior to the sale by Forestal Cono Sur S.A. to Eufores S.A. of all of its shares in Taurion Asociación Agraria de Responsabilidad Limitada and Monte Fresnos Asociación Agraria de Responsabilidad Limitada.

During 2025, Arauco made contributions of non-monetary assets to Agrícola Fresno SpA for a total amount of ThU.S.$18,812 through its subsidiary Forestal Arauco S.A. In 2024, Arauco made capital contributions to the company for a total amount of ThU.S.$12,066.

On December 18, 2024, Arauco made a capital contribution to the company Sonae Arauco S.A. for Th€ 25,000 (equivalent to ThU.S.$24,240 on the payment date), through its subsidiary in the United Kingdom, Arauco Wood Limited, maintaining 50% of control through a joint agreement.

On March 12, 2024, Eufores S.A. and Forestal Cono Sur S.A. (entities classified as Arauco's joint operation in Uruguay), acquired all shares and social rights of four companies owned by Global Timber Spain SLU and Global Timber International LLC.

The acquired companies are Taurion S.A., Taurion Asociación Agraria de Responsabilidad Limitada, Monte Fresnos S.A. and Monte Fresnos Asociación Agraria de Responsabilidad Limitada.

Collectively, these companies own approximately 32,000 hectares in Uruguay, of which approximately 19,000 hectares are planted with eucalyptus trees. The price agreed for this operation amounted to ThU.S.$80,287 and the amount paid during the period was ThU.S.$72,038.

On March 6, 2024, Arauco made a capital contribution to Eufores S.A., a company that is part of the joint operation in Uruguay, for a total of ThU.S.$60,000, through its subsidiary Inversiones Arauco Internacional Ltda., maintaining 50% of control as a joint agreement. These funds were invested in the acquisition of the above-mentioned companies.

The investments in Uruguay qualify as a joint operation, and Arauco holds a 50% interest in these investments. In relation to "other rights and contractual conditions", the joint operation has the primary objective of providing the parties an output. As established in the "Pulp Supply Agreement", both Arauco and its partner have the obligation to acquire 100% of the yearly pulp produced by the joint operation. Arauco has recognized the assets, liabilities, income and expenses associated with its interest ownership, pursuant to IFRS 11.

Arauco holds a 50% interest in Sonae Arauco, which subsidiary produces and commercializes wood panels, of the type of MDF, PB and OSB, and sawn timber, through the operation of two panel plants and one sawmill in Spain; two panel plants and one resin plant in Portugal; three panel plants in Germany and two panel plants in South Africa.

Furthermore, Arauco holds a 50% ownership in Eka Chile S.A. ("Eka"), a company that sells sodium chlorate to pulp plants in Chile. There is a contractual agreement with this company whereby Arauco has engaged in an economic activity subject to common control, which is classified as a joint venture.

The following tables set forth summarized financial information of the more significant interests in joint arrangements, which qualify as joint operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| **Celulosa y Energía Punta Pereira S.A. (Uruguay)** | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current | 319146 | 67054 | 406706 | 41608 |
| Non-current | 1912140 | 117581 | 1915522 | 125452 |
| Equity | - | 2046651 | - | 2155168 |
| Total joint arrangement | 2231286 | 2231286 | **2322228**  | **2322228**  |
| Investment | 1023326 |  | **1077584**  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
| Net income (loss) | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 840727 | 1017324 | 941429 |
| Expenses | (631529) | (668473) | (664772) |
| Joint arrangement net income (loss) | 209198 | 348851 | 276657 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Forestal Cono Sur S.A. (consolidated) | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current | 96509 | 5198 | 55490 | 5971 |
| Non-current | 124956 | 1788 | 157848 | 8584 |
| Equity | - | 214479 | - | 198783 |
| Total joint arrangement | 221465 | 221465 | **213338**  | **213338**  |
| Investment | 107240 |  | **99392**  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 28207 | 8061 | 8775 |
| Expenses | (12511) | (1226) | 3632 |
| Joint arrangement net income (loss) | 15696 | 6835 | 12407 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Eufores S.A. (consolidated) | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current | 172013 | 249547 | 176029 | 248064 |
| Non-current | 1257527 | 122337 | 1151591 | 144326 |
| Equity | - | 1057656 | - | 935230 |
| Total joint arrangement | 1429540 | 1429540 | **1327620**  | **1327620**  |
| Investment | 528827 |  | **467615**  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 308522 | 321339 | 288378 |
| Expenses | (189248) | (280007) | (216764) |
| Joint arrangement net income (loss) | 119274 | 41332 | 71614 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| **Zona Franca Punta Pereira S.A. (Uruguay)** | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current  | 10387 | 80396 | 8407 | 88462 |
| Non-current  | 410048 | - | 419279 | - |
| Equity | - | 340039 | - | 339224 |
| Total joint arrangement | 420435 | 420435 | **427686**  | **427686**  |
| Investment | 170020 |  | **169612**  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 25607 | 21875 | 21172 |
| Expenses | (24789) | (24892) | (24139) |
| Joint arrangement net income (loss) | 818 | (3017) | (2967) |

---

The following tables set forth summarized financial information of the more significant interests in joint ventures accounted in for equity method and its movements are presented in Note 15:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Eka Chile S.A. | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current  | 14008 | 4371 | 14277 | 3643 |
| Non-current  | 41044 | 5105 | 41071 | 5227 |
| Equity | - | 45576 | - | 46478 |
| Total joint arrangement | 55052 | 55052 | 55348 | 55348 |
| Investment | 22788 |  | 23239 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 52650 | 51599 | 50825 |
| Expenses | (47452) | (46334) | (47613) |
| Joint arrangement net income (loss) | 5198 | 5265 | 3212 |
| Other comprehensive income | - | - | - |
| Comprehensive income | 5198 | 5265 | 3212 |
| Dividends | 3050 | 3000 | 1500 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| **Sonae Arauco S.A.** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current  | 267087 | 245801 | 254698 | 244912 |
| Non-current  | 829842 | 386656 | 701355 | 288452 |
| Equity | - | 464472 | - | 422689 |
| Total joint arrangement | 1096929 | 1096929 | 956053 | 956053 |
| Net assets | 215198 |  | 192764 |  |
| Net asset adjustment (goodwill) | 17038 |  | 18581 |  |
| Investment | 232236 |  | 211345 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 983601 | 925346 | 1018422 |
| Expenses | (998283) | (973381) | (1005984) |
| Joint arrangement net income (loss) | (14682) | (48035) | 12438 |
| Other comprehensive income | - | - | - |
| Comprehensive income | (14682) | (48035) | 12438 |
| Dividends | - | - | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Agrícola El Paque SpA | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current  | 804 | 194 | 318 | 152 |
| Non-current  | 5076 | 882 | 4323 | 602 |
| Equity | - | 4804 | - | 3887 |
| Total joint arrangement | 5880 | 5880 | 4641 | 4641 |
| Investment | 2402 |  | 1944 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 909 | 198 | - |
| Expenses | (527) | (105) | 37 |
| Joint arrangement net income (loss) | 382 | 93 | 37 |
| Other comprehensive income | - | - | - |
| Comprehensive income | 382 | 93 | 37 |
| Dividends | - | - |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Parque Eólico Ovejera del Sur SpA | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current  | 249 | 489 | 231 | 545 |
| Non-current  | 3369 | 211 | 2806 | 192 |
| Equity | - | 2918 | - | 2300 |
| Total joint arrangement | 3618 | 3618 | 3037 | 3037 |
| Investment | 1459 |  | 1150 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | - | - | - |
| Expenses | (92) | (962) | (63) |
| Joint arrangement net income (loss) | (92) | (962) | (63) |
| Other comprehensive income | - | - | - |
| Comprehensive income | (92) | (962) | (63) |
| Dividends | - | - | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Agrícola San Gerardo SpA | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current | 2193 | 1058 | 1036 | 126 |
| Non-current | 4395 | 1654 | 4391 | 1862 |
| Equity | - | 3876 | - | 3439 |
| Total joint arrangement | 6588 | 6588 | 5427 | 5427 |
| Investment | 1938 |  | 1720 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 2471 | 757 | - |
| Expenses | (1597) | (514) | 31 |
| Joint arrangement net income (loss) | 874 | 243 | 31 |
| Other comprehensive income | - | - | - |
| Comprehensive income | 874 | 243 | 31 |
| Dividends | - | - | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| Agrícola Fresno SpA | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current | 11342 | 26712 | 2763 | 17987 |
| Non-current | 182775 | 4828 | 138270 | 3757 |
| Equity | - | 162577 | - | 119289 |
| Total joint arrangement | 194117 | 194117 | 141033 | 141033 |
| Investment | 81289 |  | 59645 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | 4573 | 155 | - |
| Expenses | (1935) | (1492) | (1198) |
| Joint arrangement net income (loss) | 2638 | (1337) | (1198) |
| Other comprehensive income | - | - | - |
| Comprehensive income | 2638 | (1337) | (1198) |
| Dividends | - | - | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
|  | Assets | Liabilities | Assets | Liabilities |
| TreeCo Inc. | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Current | 3837 | 1016 | 2485 | 202 |
| Non-current | 12372 | - | 14434 | - |
| Equity | - | 15193 | - | 16717 |
| Total joint arrangement | 16209 | 16209 | 16919 | 16919 |
| Investment on equity | 7768 |  | 8547 |  |
| Goodwill | 39577 |  | 39576 |  |
|  | 47345 |  | 48123 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | 12-31-2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Income | - | - |  |
| Expenses | (1523) | (1519) |  |
| Joint arrangement net income (loss) | (1523) | (1519) |  |
| Other comprehensive income | - | - |  |
| Comprehensive income | (1523) | (1519) |  |
| Dividends | - | - |  |

---

NOTE 17. IMPAIRMENT OF ASSETS

In the period 2022, an impairment loss provision of ThU.S.$10,500 was recognized with respect to the dryer asset casualty event at the Valdivia mill in Chile, presented within provisions for impairment of individual assets, for which reversals were made in 2023, leaving a balance of ThU.S.$3,639 as of December 31, 2023. During 2025, the remaining provision balance of ThU.S.$3,639 was reversed (no reversals of this provision were recorded as of December 31, 2024).

At the end of fiscal year 2022, the subsidiary Arauco Argentina recognized an impairment provision on its cellulose pulp manufacturing cash-generating unit following an assessment of prevailing market conditions, including projected future margin trends, foreign exchange fluctuations, and the heightened risk environment in the Argentine Republic. The provision was determined applying standard IFRS impairment testing procedures and amounted to ThU.S. $126,921 (ThU.S.$126,921 as of December 31, 2024). As of December 31, 2025, no changes in the key assumptions underlying the impairment assessment have been identified; consequently, no impairment reversals have been recognized.

On September 12, 2023, the decision to indefinitely suspend the pulp manufacturing operations at the Licancel mill (Chile) was informed, upon which an impairment provision of ThU.S.$61,039 was recognized. The provision included impairment charges against property, plant and equipment and spare parts inventory. During 2025, write-offs of the assets of ThU.S.$57,955 were recorded, and impairment provision reversals of ThU.S.$1,506 were recognized, leaving a provision balance of ThU.S.$1,578 as of December 31, 2025 (ThU.S.$61,039 as of December 31, 2024).

In the second half of 2023, an impairment provision of ThU.S.$6,037 was recognized corresponding to the closure of the Aserradero Horcones II

in Chile, which is part of the wood products segment, due to supply issues, rising costs and decreased availability of raw materials. During 2025, reversals of provision were made of ThU.S.$88, leaving a provision balance of ThU.S.$5,949 as of December 31, 2025 (ThU.S.$6,037 as of December 31, 2024).

During 2024, an impairment provision of ThU.S.$7,272 was recognized in relation to the indefinite suspension of operations of the Aserradero El Colorado in Chile, which is part of the wood products segment. The provision balance amounted to ThU.S.$7,266 as of December 31, 2025. As of December 31, 2025, no changes in the key assumptions underlying the impairment assessment have been identified; consequently, no impairment reversals have been recognized.

In the second half of 2024, an impairment provision of ThU.S.$2,027 was recognized corresponding to Properties, plant and equipment associated with MDF1 Line of the Trupán-Cholguán complex, which is part of the wood products segment, it is developing a project to modernize and renovate parts of the existing MDF1 Line, as well as the incorporation of new processes and equipment for the manufacture of OSB (Oriented Strand Board) products. As of December 31, 2025, no changes in the key assumptions underlying the impairment assessment have been identified; consequently, no impairment reversals have been recognized.

In 2024, an impairment provision was recognized for the MDP line at the Pien mill in Brazil for ThU.S.$7,226, an amount that includes ThU.S.$1,359 for impairment of the associated goodwill mentioned later in this note. During 2024, the provision was subject to write-offs, and reversals during 2025, leaving the provision at zero as of December 31, 2025.

As of December 31, 2024, impairment provisions were reversed for a total of ThU.S.$13,816 (ThU.S.$7,113 as of December 31, 2023), associated with sales and recoveries from property, plant and equipment of United States subsidiary,

leaving a balance of ThU.S.$8,016 as of December 31, 2025

.

As of December 31, 2025, an impairment provision of ThU.S.$2,183 was recognized for property, plant and equipment related to the production line PB L2 of the Durango industrial complex in Mexico, belonging to the wood products segment.

As of December 31, 2025, an impairment provision of ThU.S.$2,645 was recognized for property, plant and equipment related to the production line PB L1 of the Zitácuaro industrial complex in Mexico, which is developing a new MDF production line, belonging to the wood products segment.

All impairment provision charges are presented in the consolidated statement of profit or loss under other expenses by function, whose movements are shown below:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Changes in CGUs impairment provision | ThU.S.$ | ThU.S.$ |
| Opening balance | 367507 | 403530 |
| Impairment loss recognized in profit or loss | 4828 | 15684 |
| Reversal of impairment loss recognized in profit or loss | (69004) | (38087) |
| Increase (decrease) in foreign exchange | 5309 | (13620) |
| Closing balance | **308640**  | **367507**  |

---

Changes in provisions for impairment of property, plant and equipment and spare parts due to technical obsolescence or loss to forest due to fires, are shown below:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Changes in impairment provision from impaired assets | ThU.S.$ | ThU.S.$ |
| Opening balance | 31578 | 31933 |
| Impairment loss recognized in profit or loss | 1305 | 2840 |
| Reverse of impairment recognized loss in profit or loss | (11690) | (2493) |
| Increase (decrease) in foreign exchange | 1638 | (702) |
| Closing balance | 22831 | 31578 |

---

Goodwill

Goodwill is allocated to the groups of cash-generating units that are expected to benefit from the synergies of the combination.

At the date of these consolidated financial statements, the balance of goodwill is ThU.S.$52,681 (ThU.S.$51,325 as of December 31, 2024), as shown below:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Goodwill | ThU.S.$ | ThU.S.$ |
| Arauco Canada Ltd. (Flakeboard Company Ltd) | 40651 | 40554 |
| Arauco do Brasil S.A. (Pien mill) | 11298 | 10039 |
| Arauco North America, Inc. (Prime-Line, Inc.) | 732 | 732 |
| Closing balance | 52681 | 51325 |

---

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Goodwill movement | ThU.S.$ | ThU.S.$ |
| Opening balance at January 1 | 51325 | 55891 |
| Impairment | - | (1359) |
| Increase (decrease) in foreign exchange  | 1356 | (3207) |
| Closing balance  | 52681 | 51325 |

---

Of the total of goodwill, ThU.S.$40,651 (ThU.S.$40,554 as of December 31, 2024) were generated by the acquisition of "Flakeboard" (currently Arauco Canada Ltd.), a company that, directly and/or through its subsidiaries, possesses and operates 7 panel plants, for which Arauco acquired and paid, on September 24, 2012, the price of ThU.S.$242,502 for the 100% interest ownership.

The remaining balance of ThU.S.$732 corresponds to the acquisition of Prime-Line Inc., on September 1, 2019, for which Arauco North America Inc, a subsidiary of Arauco Canada Ltd. paid ThU.S.$18,880 for all the shares of said company.

The recoverable amount for Flakeboard's cash generating unit was determined in the annual closing based on the calculations of its value in use, and this calculation was made using cash flow projections covering a 7-year term, a period time, which is considered to represent the cyclicality of the business performance, applying a nominal discount rate of 8%, which reflects current market assessments for the wood products segment in North America.

Due to the investment in panel plant in Pien, Brazil, as of December 31, 2025, Arauco remains a goodwill balance of ThU.S.$11,298 (ThU.S.$10,039 as of December 31, 2024), associated with the cash-generating unit of the MDF line.

The recoverable amount for the group of cash-generating units of the Pien mill was determined in the annual closing based on the calculations of its value in use, and this calculation was made using cash flow projections covering a 5-year term based on the operational plan approved by the Administration, applying a 7.4% nominal discount rate that reflects current evaluations for the panel segment in Brazil.

As of December 31, 2025, 2024 and 2023, the carrying value recognized in the financial statements of Arauco Canada Ltd. and Arauco Do Brasil S.A. for the group of cash-generating units did not exceed their recoverable value,

except for ThU.S.$1,359 of impairment of goodwill and ThU.S.$5,867 of impairment of assets associated exclusively with the MDP line of cash-generating unit of the Pien mill recognized in 2024. As of December 31, 2025, no impairment indicators were identified.

**NOTE 18. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES**

The following is a summary of the contingent liabilities' cases considered relevant to disclose:

Subsidiaries of the Arauco group, **Forestal Arauco S.A., Celulosa Arauco y Constitución S.A. and Maderas Arauco S.A.**, are facing a contractual lawsuit filed by the Asociación Gremial de Dueños de Camiones de Cosntrucción (ASODUCAM), related to alleged breaches of cargo allocation and freight transportation agreements. The claim was filed in 2018, has been subject to amendments and defenses, and the proceedings are currently suspended by court order. The plaintiff seeks specific performance of the contract and payment of CLP$575,000,000 (ThU.S.$634 as of December 31, 2025) as compensation for damages. Alternatively, the plaintiff requests payment of: (a) CLP$11,189,270,050 (ThU.S.$12,335 as of December 31, 2025) for consequential damages; (b) $11,189,270,050 per month (ThU.S.$12,335 as of December 31, 2025) throughout the duration of the proceedings, until termination of the contract is declared in the final judgment, for lost profits, and (c) CLP$5,000,000,000. (ThU.S.$5,195 as of December 31, 2025) for non-monetary damages. As of the reporting date, the evidentiary stage of the proceedings has commenced.

**Forestal Arauco S.A**

.

was sued in a civil claim for ownership by Inversiones Forestales Los Alpes Limitada and Forestal Neltume-Carranco S.A., for land amounting to approximately 1,856 hectares. The trial began in 2015, the evidentiary stage was completed, and the case finally concluded by a final court ruling during the period.

**Forestal Arauco S.A** 

initiated a contractual arbitration procedure against RWE Renewables, arising from breaches of representation and warranties contained in a framework agreement. The arbitration was initiated in 2025, both parties put forth their respective claims, and as of the closing date, the hearing to define the arbitration's procedural rules has been scheduled. Forestal Arauco S.A. will seek payment of approximately ThU.S.$26,926, while RWE Renewables has filed counterclaims for approximately ThU.S.$23,000.

**Forestal Cholguán S.A.**

is facing civil damages claim filed by Luis Cabezas Roa, in connection with the alleged inability to exercise his rights on a property as a result of injunctions decreed in a previous proceeding. The lawsuit was served during 2025, and the case is currently in its initial stages. The claimed sum is approximately CLP$9,723,900,000 (ThU.S.$10,719 as of December 31, 2025). At the end of the period, the court summoned the parties for the issuance of the judgment.

**Arauco Argentina S.A.** 

continued pursuing tax and regulatory proceedings with the National Government related to the application of the benefits provided for in Law No. 25,080 on forestry promotion, particularly with respect to the suspension of the export duty exemption. The disputes gave rise to administrative and judicial proceedings initiated in 2005, which concluded in 2024 with a final ruling confirming the legality of the suspension. In addition, Arauco Argentina S.A. is currently involved in administrative proceedings before the National Secretariat of Agriculture, Livestock, and Fisheries related to the recognition of its compliance with the committed forestry projects and guarantees in favor of the authority. The Company's legal advisors are of the opinion that, since it has not been established that Arauco was not entitled to the exemption, and to the extent that the committed forestry projects are declared to have been completed, the amounts paid as a precautionary measure in respect of export duties should be refunded. As of December 31, 2025, the Company maintains a provision of ThU.S.$23,821 for export duties guaranteed during the 2007-2015 period, a sum reported under Other Long-Term Provisions item.

**Arauco Industria de México, S.A. de C.V**

. is subject to a tax assessment procedure initiated by the Mexican Tax Administration Service (SAT) for the 2014 fiscal year, for an amount of approximately $482,355,911 Mexican Pesos (ThU.S.$26,872 as of December 31, 2025) related to tax deductions, tax losses, and the application of treaties to prevent double taxation. The final decision, notified to Arauco in December 2022, was subject to administrative appeals and, as of the closing date, the process remains pending before the administrative courts. The Company maintains a provision of $97,384,407 Mexican Pesos (ThU.S.$5,425 as of December 31, 2025), a sum reported under Other Long-Term Provisions item.

At the closing date, there are no other contingencies in which the Companies act as obligor, that may significantly affect their financial, economic or operational conditions.

In cases where an outflow of resources has been deemed probable, the corresponding provisions have been recognized. The rest of the proceedings remain classified as contingent liabilities. The Company has not disclosed the likelihood of success for each individual contingency, so as not to negatively affect their resolution.

Provisions recorded as of December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Classes of Provisions  | ThU.S.$ | ThU.S.$ |
| Short-term provisions | **3055**  | **1837**  |
| Provisions for litigations | 677 | 499 |
| Other short-term provisions | 2378 | 1338 |
| Long-term provisions, non-Current | **38588**  | **33121**  |
| Provisions for litigations | 34732 | 29265 |
| Other long-term provisions | 3856 | 3856 |
| Total provisions | **41643**  | **34958**  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 |
|  | Litigations (\*) | Other Provisions | Total |
| Movements in provisions  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | 29764 | 5194 | 34958 |
| Changes in provisions |  |  |  |
| Additional provisions | 7425 | 575 | 8000 |
| Used provisions | (1557) | (293) | (1850) |
| Increase (decrease) in foreign exchange | (223) | 758 | 535 |
| Total changes | 5645 | 1040 | 6685 |
| Closing balance | 35409 | 6234 | 41643 |

---

(\*) The increase in litigations mainly relates to subsidiaries in Mexico and Brazil in connection with civil and labor lawsuits amounting to ThU.S.$6,702. Likewise, the utilization of the provision primarily corresponds to the settlement of court rulings of subsidiaries in Brazil for ThU.S.$937.

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | Litigations (\*) | Other Provisions<br> (\*\*) | Total |
| Movements in provisions  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | 29091 | 3465 | 32556 |
| Changes in provisions |  |  |  |
| Additional provisions | 3763 | 4667 | 8430 |
| Used provisions | (1834) | (2310) | (4144) |
| Increase (decrease) in foreign exchange | (1261) | (628) | (1889) |
| Other increases (decreases) | 5 | - | 5 |
| Total changes | 673 | 1729 | 2402 |
| Closing balance | 29764 | 5194 | 34958 |

---

(\*) The increase in litigations is mainly made up of ThU.S.$3,673 by subsidiaries in Argentina and Brazil for civil and labor lawsuits.

(\*\*) The increase in Other Provisions corresponds mainly to the deferred subsidy of one subsidiary in Brazil. In addition, the decrease in Other Provisions corresponds mainly to the reversal of the provision for dismantling of Line 1 of Arauco mill.

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2023 | 12-31-2023 | 12-31-2023 |
|  | Litigations (\*) | Other Provisions <br> (\*\*) | Total |
| Movements in provisions  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | 39668 | 10551 | 50219 |
| Changes in provisions |  |  |  |
| Additional provisions | 27732 | - | 27732 |
| Increase due to business combination | 87 | - | 87 |
| Used provisions | (1743) | (5440) | (7183) |
| Reversal of unused provision | (32276) | (1676) | (33952) |
| Increase (decrease) in foreign exchange | (3524) | 30 | (3494) |
| Other increases (decreases) | (31) | - | (31) |
| Decrease through transfer to liabilities included in disposal groups classified as held for sale | (822) | - | (822) |
| Total changes | (10577) | (7086) | (17663) |
| Closing balance | 29091 | 3465 | 32556 |

---

(\*) The increase in litigations is mainly made up of ThU.S.$25,098 (subsidiaries in Brazil) for civil and labor lawsuits. In addition, the decrease legal litigations correspond mainly to the reversal of the provision for a lawsuit with a supplier in the Arauco do Brasil S.A.

(\*\*) The decrease in Other Provisions corresponds mainly to the reversal of the provision for dismantling of Line 1 of Arauco mill and the decrease in the balance of the provision for negative equity of E2E SpA.

Provisions for litigations are related to labor and tax claims whose payment period is uncertain. Other provisions mainly include constitution of provision for the lawsuit of export duties (see contingent liability of Arauco Argentina S.A. and Arauco Industria de México, S.A. de C.V. set forth in this note).

NOTE 19. INTANGIBLE ASSETS

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Classes of intangible assets, net | ThU.S.$ | ThU.S.$ |
| Intangible assets, net | **50493**  | **55980**  |
| Intangible assets under development (IT programs) | 1249 | 1025 |
| Computer software | 14609 | 17866 |
| Water rights | 3715 | 4338 |
| Customer relationship | 9703 | 14367 |
| Other identifiable intangible assets | 21217 | 18384 |
| Classes of intangible assets, gross | **190456**  | **230158**  |
| Intangible assets under development (IT programs) | 1249 | 1025 |
| Computer software | 83548 | 127944 |
| Water rights | 3715 | 4338 |
| Customer relationship | 74921 | 73888 |
| Other identifiable intangible assets | 27023 | 22963 |
| Classes of accumulated amortization and impairment |  |  |
| Total accumulated amortization and impairment | **(139963)**  | **(174178)**  |
| Accumulated amortization and impairment, intangible assets | **(139963)**  | **(174178)**  |
| Computer software | (68939) | (110078) |
| Customer relationship | (65218) | (59521) |
| Other identifiable intangible assets | (5806) | (4579) |

---

Reconciliation of the carrying amount of intangible assets at the beginning and end of each reporting period balances

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 |
|  | Intangible<br> assets under<br> development | Computer<br> software | Water rights | Customer<br> relationship | Others | Total |
| Reconciliation of intangible assets  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | **1025**  | **17866**  | **4338**  | **14367**  | **18384**  | **55980**  |
| Changes |  |  |  |  |  |  |
| Additions | 821 | 3703 | - | - | 4139 | 8663 |
| Disposals or withdrawals | (117) | (1530) | (623) | - | - | (2270) |
| Amortization  | - | (6340) | - | (4899) | (951) | (12190) |
| Increase (decrease) in foreign exchange | 1 | 255 | - | 235 | (355) | 136 |
| Increase (decrease) though transfers | - | 109 | - | - | - | 109 |
| Other increases (decreases)  | (481) | 546 | - | - | - | 65 |
| Changes total | **224**  | **(3257)**  | **(623)**  | **(4664)**  | **2833**  | **(5487)**  |
| Closing balance | **1249**  | **14609**  | **3715**  | **9703**  | **21217**  | **50493**  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | Intangible<br> assets under<br> development | Computer<br> software | Water rights | Customer<br> relationship | Others | Total |
| Reconciliation of intangible assets  | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | 2793 | **21234**  | 4999 | 19457 | 17948 | 66431 |
| Changes |  |  |  |  |  |  |
| Additions | 1099 | 3298 | - | - | 1422 | 5819 |
| Disposals or withdrawals | (7) | (108) | (661) | - | - | (776) |
| Amortization  | - | (8234) | - | (4925) | (550) | (13709) |
| Increase (decrease) in foreign exchange | - | (440) | - | (165) | (436) | (1041) |
| Increase (decrease) though transfers | (670) | - | - | - | - | (670) |
| Other increases (decreases)  | (2190) | 2116 | - | - | - | (74) |
| Changes total | (1768) | (3368) | (661) | (5090) | 436 | (10451) |
| Closing balance | 1025 | 17866 | 4338 | 14367 | 18384 | 55980 |

---

---

| | | |
|:---|:---|:---|
|  | Years of useful life <br>(average) | Years of useful life <br>(average) |
| Computer software |  | 5 |
| Customer relationship |  | 15 |
| Brands |  | 7 |

---

The amortization of customer relationship and computer software is presented in the consolidated statements of profit or loss under the administrative expenses line item.

**NOTE 20. BIOLOGICAL ASSETS** 

Biological assets comprise forestry plantations, mainly eucalyptus, radiata and taeda pine. The plantations are located in Chile, Argentina, Brazil and Uruguay.

As of December 31, 2025, Arauco had a total surface of 1.9 million hectares of which 1,152 thousand hectares are used for forestry planting, 490.1 thousand hectares are native forest, 122.8 thousand hectares are used for other purposes and 113.2 thousand hectares not yet planted. Lands corresponding to native forest, lands used for other purposes and lands not yet planted are presented in property, plant and equipment, Forest plantations are presented in Biological Assets.

For the year ended December 31, 2025, the production volume of logs totaled 17.5 million m3 (19.6 million m3 and 19.7 million m3 for the years ended December 31, 2024 and 2023, respectively).

Measurements of fair value of Arauco's biological assets are classified as Level 3, due to the fact that inputs are not observable. However, this information reflects the assumptions that market participants would use in pricing the asset, including assumptions about risk.

These unobservable inputs were developed using the best information available and includes internal data from Arauco. These unobservable inputs can be adjusted if the available information indicates that other market participants would use different information or there is something specific in Arauco that is not available to other market participants.

The main considerations in determining the fair value of biological assets include the following:

- Arauco uses discounted expected future cash flows of its forest plantations, which are based on a harvest projection date for all existing plantations.

- Current forestry plantations are projected based on a net volume that will not decrease, with a minimum growth equivalent to the current supply demand.

- Future plantations are not considered.

- The harvest of forestry plantations supplies raw materials for all other products that Arauco produces and trades. By directly controlling the development of forests that will be processed, Arauco ensures high quality timber for each of its products.

- Expected cash flows are determined in terms of harvest and expected sale of forestry products, associated with the demand from the Company's own industrial centers and sales to third parties at market prices. Sales margin of the different products that are harvested in the forest is also considered in the valuation. The changes in the value of the plantations pursuant to the criteria defined above are accounted for in the results for the period, as established in IAS 41. These changes are presented in the consolidated statements of profit or loss under the line-item other income per function, which generated an impact for the year ended December 31, 2025 amounted to ThU.S.$204,646 (ThU.S.$159,021 and ThU.S.$264,477 for the years ended December 31, 2024 and 2023, respectively). The appraisal of biological assets resulted in a greater cost of the lumber sold in comparison to the real incurred cost, which is presented included in the cost of sales which as of December 31, 2025 amounted to ThU.S.$174,836 (ThU.S.$290,470 and ThU.S.$344,991 for the years ended December 31, 2024 and 2023, respectively).

- Forestry plantations are harvested according to the needs of Arauco's production plants.

- The discount rates used are 6.6% in Chile, 20.6% in Argentina, 8.3% Brazil and 8% in Uruguay.

- It is expected that prices of harvested timber are constant in real terms based on market prices.

- Cost expectations with respect to the lifetime of the forests are constant based on estimated costs included in the projections made by Arauco.

- The average crop age by species and country is:

Chile Argentina Brazil Uruguay <br> Pine 24 15 15 - <br> Eucalyptus 12 10 7 10

The following table sets forth the sensitivity to changes in fair value of biological assets considering variations in significant assumptions considered in calculating the fair value of the assets:

---

| | | |
|:---|:---|:---|
|  |  | ThU.S.$ |
| Discount rate | 0.5 | (108938) |
|  | -0.5 | 116538 |
| Margins (%) | 10 | 401647 |
|  | -10 | (401638) |

---

The significant unobservable input data used in the measurement of the fair value of biological assets are discount rates and sales margins of the different products that are harvested from the forest. Increases (decreases) in any of these input data considered in isolation would result in a smaller or greater fair value measurement.

The adjustment to fair value of biological assets minus sale costs is recorded in the consolidated statements of profit or loss, under the line-item other income or other expenses, depending on whether it corresponds to profits or losses.

Forestry plantations classified as current biological assets are those to be harvested and sold within twelve months after the reporting period.

The Company has contracted fire insurance policies for its forestry plantations, which in conjunction with the Company's resources, allow risks to be minimized.

As of the date of these consolidated financial statements, there are no committed disbursements for the acquisition of biological assets.

Detail of biological assets pledged as security

As of December 31, 2025, there were no forestry plantations pledged as security.

Detail of biological assets with restricted ownership

As of the date of these consolidated financial statements, there are no biological assets with restricted ownership.

No significant government grants have been received.

Current and non-current biological assets

As of the date of these consolidated financial statements, the current and non-current biological assets were as follows:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Current | 236333 | 315500 |
| Non-current | 3101604 | 2747894 |
| Total | 3337937 | 3063394 |

---

Reconciliation of carrying amount of biological assets

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 |
|  | Current | Non-current | Total |
| Movement  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | **315500**  | 2747894 | 3063394 |
| Changes in real incurred cost | 4575 | 255639 | 260214 |
| Additions through acquisition | 1952 | 411761 | 413713 |
| Sales | (13) | (5247) | (5260) |
| Harvest | (139247) | - | (139247) |
| Increases (decreases) in foreign exchange | 163 | - | 163 |
| Loss of forest due to fires | - | (9484) | (9484) |
| Transfers from non-current to current | 141720 | (141720) | - |
| Other increases (decreases) | - | 329 | 329 |
| Changes in fair value | (83742) | 98071 | 14329 |
| Gain (losses) arising from changes in fair value minus sale costs | 418 | 204228 | 204646 |
| Sales | 12 | (11432) | (11420) |
| Harvest | (175947) | - | (175947) |
| Increases (decreases) in foreign exchange | 60 | - | 60 |
| Loss of forest due to fires | - | (2650) | (2650) |
| Transfers from non-current to current | 91715 | (91715) | - |
| Other increases (decreases) | - | (360) | (360) |
| Total changes | (79167) | 353710 | 274543 |
| Closing balance | 236333 | 3101604 | 3337937 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | Current | Non-current | Total |
| Movement  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | **370957**  | 2651622 | 3022579 |
| Changes in real incurred cost | 16970 | 149293 | 166263 |
| Additions through acquisition | - | 380414 | 380414 |
| Increases (decreases) due to business combination | - | 21880 | 21880 |
| Sales | (27) | (6481) | (6508) |
| Harvest | (140381) | - | (140381) |
| Increases (decreases) in foreign exchange | (4268) | (58983) | (63251) |
| Loss of forest due to fires | - | (25633) | (25633) |
| Transfers from non-current to current | 161646 | (161646) | - |
| Other increases (decreases) | - | (258) | (258) |
| Changes in fair value | (72427) | (53021) | (125448) |
| Gain (losses) arising from changes in fair value minus sale costs | - | 117316 | 117316 |
| Sales | - | (7946) | (7946) |
| Harvest | (241617) | - | (241617) |
| Increases (decreases) in foreign exchange | (6739) | 13219 | 6480 |
| Loss of forest due to fires | - | 715 | 715 |
| Transfers from non-current to current | 175929 | (175929) | - |
| Other increases (decreases) | - | (396) | (396) |
| Total changes | (55457) | 96272 | 40815 |
| Closing balance | 315500 | 2747894 | 3063394 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2023 | 12-31-2023 | 12-31-2023 |
|  | Current | Non-current | Total |
| Movement  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance | **330435**  | 2864935 | 3195370 |
| Changes in real incurred cost | 910 | 158489 | 159399 |
| Additions through acquisition | 1570 | 416792 | 418362 |
| Sales | (168) | (6167) | (6335) |
| Harvest | (147901) | - | (147901) |
| Increases (decreases) in foreign exchange | 279 | 14638 | 14917 |
| Loss of forest due to fires | (1652) | (63353) | (65005) |
| Transfers to non-current assets held for sale | (11022) | (43939) | (54961) |
| Transfers from non-current to current | 159804 | (159804) | - |
| Other increases (decreases) | - | 322 | 322 |
| Changes in fair value | 39612 | (371802) | (332190) |
| Gain (losses) arising from changes in fair value minus sale costs  | - | 264477 | 264477 |
| Sales | (51) | (5736) | (5787) |
| Harvest | (322232) | - | (322232) |
| Increases (decreases) in foreign exchange | (4311) | 5401 | 1090 |
| Loss of forest due to fires | - | (43721) | (43721) |
| Transfers to non-current assets held for sale | (48148) | (177869) | (226017) |
| Transfers from non-current to current | 414354 | (414354) | - |
| Total changes | 40522 | (213313) | (172791) |
| Closing balance | 370957 | 2651622 | 3022579 |

---

Regarding the fires that occurred in Chile in early 2023 in the regions of Maule, Ñuble, Araucanía, Biobío and Los Ríos, 47 thousand hectares of productive forest plantations of Arauco were affected. During 2023, management was carried out that allowed to recover an approximate equivalent to 12 thousand hectares.

For the year ended December 31, 2023, a forest fire loss net of insurance compensation of ThU.S.$17,191 was recognized for the fires in Chile, reducing the gross value of the biological assets, which represented 3.2% of the value of the forest plantations of Arauco. For the year ended December 31, 2024, a forest loss of ThU.S.$2,841 was recognized for fires in Chile.

NOTE 21. ENVIRONMENTAL MATTERS

Environment management

For Arauco, sustainability means management strategy. This strategy incorporates values, commitments and standards, that together with the adoption of best practices as well as the use of the latest available technologies, seek to continuously improve the Company's environmental management. It is the environmental department and each of its specialists that ensure these guidelines are met and are put into practice in everyday company operations.

All Arauco's production units have certified environmental management systems, which reinforce the Company's commitment to environmental performance and ensure the traceability of all raw materials used.

Arauco uses several supplies in its productive processes such as wood, chemical products, and water, etc., which in turn produce liquid and gas emissions. As a way to make the Company's environmental management more efficient, significant progress has been made to reduce consumption and emissions.

Environmental investments have been made related to the control of atmospheric emissions, process improvements, water and waste management, as well as effluent treatment, in order to improve the environmental performance of all Arauco's business units.

These investments are reflected in the consolidated financial statements as property, plant and equipment when they refer to disbursements in major works executed and are reflected in Expenses when they refer to improvements or management not directly associated with investment projects.

Detail information of disbursements related to the environment

As of December 31, 2025 and 2024 Arauco had made and / or had committed the following disbursements in major environmental projects:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| 12-31-2025 | 12-31-2025 | Disbursements undertaken 2025 | Disbursements undertaken 2025 | Disbursements undertaken 2025 | Disbursements undertaken 2025 | Committed Disbursements | Committed Disbursements |
|  |  | State | Amount | Asset | Asset/expense | Amount | Estimated |
| Company | Name of Project | of project | ThU.S.$ | Expense | destination item | ThU.S.$ | date |
| Celulosa Arauco y Constitución S.A. | Waste management and circular economy | Finished | 3241 | Assets  | Properties, plants and equipments | - | 2025 |
| Celulosa Arauco y Constitución S.A. | Water management and wastewater treatment | Finished | 1692 | Assets  | Properties, plants and equipments | - | 2025 |
| Celulosa Arauco y Constitución S.A. | Emissions, environmental monitoring, and control | In process | - | Assets  | Properties, plants and equipments | 511 | 2026 |
| Celulosa Arauco y Constitución S.A. | Emissions, environmental monitoring, and control | In process | 17743 | Expense | Operating costs | - | 2026 |
| Celulosa Arauco y Constitución S.A. | Waste management and circular economy | In process | 13811 | Expense | Operating costs | - | 2026 |
| Arauco Argentina S.A. | Water management and wastewater treatment | In process | 636 | Assets  | Properties, plants and equipments | 455 | 2026 |
| Arauco Celulose do Brasil S.A. | Biodiversity and ecosystem conservation | In process | 441 | Expense | Operating costs | 826 | 2026 |
| Arauco Celulose do Brasil S.A. | Environmental emergencies and safety | In process | 97 | Expense | Operating costs | 510 | 2026 |
| Arauco do Brasil S.A. | Environmental emergencies and safety | Finished | 228 | Assets  | Properties, plants and equipments | - | 2025 |
| Forestal Arauco S.A. | Biodiversity and ecosystem conservation | In process | 1326 | Expense | Operating costs | 1031 | 2026 |
| Forestal Arauco S.A. | Education, Certification and ESG Governance | In process | 470 | Expense | Operating costs | 449 | 2026 |
| Forestal Arauco S.A. | Water management and wastewater treatment | In process | 315 | Expense | Operating costs | 283 | 2026 |
| Maderas Arauco S.A. | Water management and wastewater treatment | In process | 434 | Expense | Operating costs | 36 | 2026 |
| Celulosa y Energía Punta Pereira S.A. | Waste management and circular economy | In process | 3750 | Assets  | Properties, plants and equipments | - | 2026 |
| Celulosa y Energía Punta Pereira S.A. | Renewable energy and energy efficiency | Finished | 300 | Assets  | Properties, plants and equipments | - | 2025 |
| Arauco Industria de México, S.A. de C.V. | Emissions, environmental monitoring, and control | In process | 97 | Expense | Operating costs | 372 | 2026 |
| Arauco Industria de México, S.A. de C.V. | Waste management and circular economy | In process | 256 | Expense | Operating costs | 500 | 2026 |
| Arauco Industria de México, S.A. de C.V. | Water management and wastewater treatment | In process | 1907 | Assets  | Properties, plants and equipments | 78 | 2026 |
| Arauco North America, Inc | Emissions, environmental monitoring, and control | In process | 93 | Assets  | Properties, plants and equipments | 211 | 2026 |
|  |  | TOTAL | 46837 |  |  | 5262 |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| 12-31-2024 | 12-31-2024 | Disbursements undertaken 2024 | Disbursements undertaken 2024 | Disbursements undertaken 2024 | Disbursements undertaken 2024 | Committed Disbursements | Committed Disbursements |
|  |  | State | Amount | Asset | Asset/expense | Amount | Estimated |
| Company | Name of Project | of project | ThU.S.$ | Expense | destination item | ThU.S.$ | date |
| Celulosa Arauco y Constitución S.A. | Environmental improvement studies | In process | 104 | Assets  | Properties, plants and equipments | 1222 | 2025 |
| Celulosa Arauco y Constitución S.A. | Investment projects for the control and management of gas emissions from industrial process | In process | - | Assets  | Properties, plants and equipments | 511 | 2025 |
| Celulosa Arauco y Constitución S.A. | Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants | In process | 2516 | Assets  | Properties, plants and equipments | 5070 | 2025 |
| Celulosa Arauco y Constitución S.A. | Expansion of solid industrial waste dumpsite for management of these in the future | In process | 4256 | Assets  | Properties, plants and equipments | 8816 | 2025 |
| Celulosa Arauco y Constitución S.A. | Environmental improvement studies | In process | 16822 | Expense | Operating costs | - | 2025 |
| Celulosa Arauco y Constitución S.A. | Expansion of solid industrial waste dumpsite for management of these in the future | In process | 17365 | Expense | Operating costs | - | 2025 |
| Arauco do Brasil S.A. | Environmental improvement studies | In process | 1799 | Assets  | Properties, plants and equipments | 270 | 2025 |
| Arauco Argentina S.A. | Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants | In process | - | Assets  | Properties, plants and equipments | 553 | 2025 |
| Arauco Industria de Paineis S.A. | Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants | In process | 223 | Expense | Operating costs | 127 | 2025 |
| Forestal Arauco S.A. | Environmental improvement studies | In process | 2372 | Expense | Operating costs | 1881 | 2025 |
| Maderas Arauco S.A. | Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants | In process | 496 | Expense | Operating costs | 41 | 2025 |
| Celulosa y Energía Punta Pereira S.A. | Expansion of solid industrial waste dumpsite for management of these in the future | In process | 150 | Assets  | Properties, plants and equipments | 2500 | 2025 |
| Arauco Industria de México, S.A. de C.V. | Expansion of solid industrial waste dumpsite for management of these in the future | In process | 803 | Expense | Operating costs | - | 2025 |
| Arauco North America, Inc | Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants | Finished | 3249 | Assets  | Properties, plants and equipments | - | 2024 |
| Arauco North America, Inc | Investment projects for the control and management of gas emissions from industrial process | Finished | 368 | Assets  | Properties, plants and equipments | - | 2024 |
|  |  | TOTAL | 50523 |  |  | 20991 |  |

---

NOTE 22. NON-CURRENT ASSETS HELD FOR SALE

On December 20, 2023, Arauco entered into a share purchase agreement ("SPA"). Pursuant to this agreement, Arauco, along with its subsidiary Inversiones Arauco Internacional Limitada (the "Sellers"), agreed to sell to a company specially incorporated for such purpose and designated by the Brazilian company Klabin S. A. (the "Buyer") all of the shares and interests that the Sellers directly hold in Arauco Florestal Arapotí S.A. and Arauco Forest Brasil S.A., and indirectly hold in Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A. (jointly, the "Brazilian Forestry Companies"), which own assets mainly in the state of Paraná, Brazil.

The assets included in the sale were all the shares and interests in these Brazilian forestry companies, except for Florestal Vale do Corisco S.A., where the Sellers indirectly own 49% of the latter's shares of this associate.

On July 16, 2024, Arauco transferred all shares and interests held in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., entities owning assets primarily located in the state of Paraná, Brazil. The sale price, which amounted to ThU.S.$1,168,161, amount that was fully paid on that date. Subsequently, on October 17, 2024, an additional payment of ThU.S.$4,613 due to customary price adjustments at the transaction's closing. The total amount received by Arauco after taxes was ThU.S.$971,097, which generated a profit of ThU.S.$209,497 after taxes.

The eucalyptus and pine forest plantations included in the transaction span approximately 85,000 hectares. Moreover, it should also be noted that the sale of shares and interests did not extend to the industrial assets related to the panel mills in Brazil, nor to other forestry assets located mainly in the state of Mato Grosso do Sul, Brazil, which are related to an industrial project to subsequently build a pulp mill, known as "Project Sucuriú."

The following table sets forth information on the main types of non-current assets and liabilities held for sale:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| **Assets classified as held for sale** <br>| ThU.S.$ | ThU.S.$ |
| Property, plant and equiment | 3901 | 3767 |
| Assets classified as held for sale | **3901**  | **3767**  |

---

For the year ended December 31, 2023, the Company recognized net deferred tax assets of ThU.S.$78,061 resulting from the proposed sale transaction. The aforementioned amount comprises a charge to earnings in the amount of ThU.S.$57,110 and a credit to conversion reserves in the amount of ThU.S.$135,171. These deferred taxes reflect the difference between the financial book value and tax value of the companies to be sold, which were not previously recorded in accordance with IAS 12.

**NOTE 23. FINANCIAL INSTRUMENTS**

23.1 Classification

Arauco's financial instruments as of December 31, 2025 and 2024, are displayed in the table below. Regarding those instruments valued at an amortized cost, an estimation of their fair value is displayed for informational purposes.

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| | | | | |
|:---|:---|:---|:---|:---|
| Financial instruments | 12-31-2025 | 12-31-2025 | 12-31-2024 | 12-31-2024 |
| Thousands of dollars | Carrying<br> amount | Fair value | Carrying<br> amount | Fair value |
| Financial assets at fair value through profit or loss | **62161**  | 62161 | **70330**  | **70330**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative | 9862 | 9862 | 31 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mutual funds (1) | 52299 | 52299 | 70299 | 70299 |
| Financial assets at amortized cost | **2152427**  | 2152427 | **2165579**  | **2165579**  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 1231754 | 1231754 | **1001261**  | **1001261**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | 805485 | 805485 | 642111 | 642111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 426269 | 426269 | 359150 | 359150 |
| &nbsp;&nbsp;&nbsp;Accounts receivable (net) | 911491 | 911491 | **1120442**  | **1120442**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 679166 | 679166 | 898717 | 898717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease receivable | 77319 | 77319 | 67687 | 67687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sundry debtors | 34104 | 34104 | 20206 | 20206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 57498 | 57498 | 70367 | 70367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments | 63404 | 63404 | 63465 | 63465 |
| &nbsp;&nbsp;&nbsp;Accounts receivable from related parties | 490 | 490 | **10159**  | **10159**  |
| &nbsp;&nbsp;&nbsp;Other financial assets (4) | 8692 | 8692 | **33717**  | **33717**  |
| Hedging assets at fair value through other comprehensive income | **469968**  | 469968 | **8959**  | **8959**  |
| Financial liabilities at amortized cost (2) | **9704095**  | 9590600 | **7414740**  | **6799888**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds issued denominated in U.S. dollars | 3401034 | 3210190 | 2898249 | 2638226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds issued denominated in U.F. (3) | 2901520 | 2791889 | 1819427 | 1404819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank borrowings in U.S. dollars | 768728 | 945060 | 626169 | 673243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank borrowings in other currencies | 487438 | 498086 | 524854 | 537559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 1015060 | 1015060 | 727990 | 727990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables | 1096954 | 1096954 | 781281 | 781281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable to related parties | 33361 | 33361 | 36770 | 36770 |
| Financial liabilities at fair value through profit or loss | **134**  | 134 | **12**  | **12**  |
| Hedging liabilities at fair value through other comprehensive income | 19744 | 19744 | **201906**  | **201906**  |
| Other financial liabilities at amortized cost (4) | 69160 | 69160 | - | - |

---

(1) Although mutual funds are measured at fair value through profit or loss for purposes of the consolidated statements of financial position mutual funds are classified as "Cash and cash equivalents" due to the are highly liquid short-term investment.

(2) Financial liabilities measured at amortized cost, other than "Trade and other payables", "Accounts payable to related parties" and derivatives are presented in the consolidated statements of financial position in the line item "Other financial liabilities" as current and non-current based on their maturity.

(3) The Unidad de Fomento ("U.F.") is a unit of account that is linked to, and is adjusted daily to reflect changes in the Chilean consumer price index.

(4) "Other financial assets" and "Other financial liabilities" mainly correspond to the balance from margin calls associated with transactions involving derivative financial instruments.

23.2 Fair Value Hierarchy of Financial Assets and Liabilities

The assets and liabilities measured at fair value in the consolidated statements of financial position as of December 31, 2025 and 2024, have been measured based on the valuation methodologies provided in IFRS 13. The methodologies applied for each financial instrument are classified according to their hierarchy as follows:

- Level 1: Securities or quoted prices in active markets for identical assets and liabilities

- Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

- Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | Level 1 | Level 2 | Level 3 |
| Fair value | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Financial assets through profit or loss |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives | 9862 | - | 9862 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mutual Funds | 52299 | 52299 | - |  |
| Hedging assets through other comprehensive income | 469968 | - | 469968 |  |
| Financial liabilities through profit or loss | 134 | - | 134 |  |
| Hedging liabilities through other comprehensive income | 19744 | - | 19744 |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2024 | Level 1 | Level 2 | Level 3 |
| Fair value | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Financial assets through profit or loss |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives | 31 | - | 31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mutual Funds | 70299 | 70299 | - |  |
| Hedging assets through other comprehensive income | 8959 | - | 8959 |  |
| Financial liabilities through profit or loss | 12 | - | 12 |  |
| Hedging liabilities through other comprehensive income | 201906 | - | 201906 |  |

---

At the closing date of these consolidated financial statements, there have been no transfers between the different hierarchy levels.

**23.3** Explanation of the valuation of financial instruments.

Cash and cash equivalent and accounts receivable

The carrying amount of accounts receivable, cash and cash equivalents (including mutual funds), and other financial assets and liabilities approximate their fair value due to the short-term nature of such instruments.

Derivative financial instruments

Arauco's current derivatives are valued under the cash flow discount method

.

These flows are discounted

at the rate applicable according to the transaction's and counterparties' risk, using an internal methodology based on the information obtained from Bloomberg.

Given that our cross-currency swaps correspond to future flows in U.F., U.S. dollars and Euros, Arauco calculates the current value of such flows by using the U.F. zero coupon curve, dollar zero coupon and the Euro zero coupon.

The fair value of the interest rate swap contracts is calculated by reference to the rate differential between the agreed upon rate and the market rate as of the end date of these consolidated financial statements.

The fair value of the currency forward contracts is calculated by reference to the current forward exchange rates of contracts with similar maturity profiles.

The counterparty risk uses the *Z-Spread* obtained from the curve of the bonds issued by counterparties, and they are deducted from each flow as appropriate.

Financial liabilities

The fair value of bonds issued was determined with reference to quoted market prices as they have standard terms and conditions.

The fair value of bank borrowings was determined based on discounted cash flow analysis applying the corresponding discount yield curves to the remaining term to maturity.

Disclosures of the fair value of financial liabilities at amortized cost are determined via the use of discounted cash flows, calculated over variables of the observable markets as of the date of informing the consolidated financial statements, and correspond to Level 2 of the fair value hierarchy.

The following table sets forth a reconciliation between the financial liabilities and the consolidated statements of financial position as of December 31, 2025 and 2024:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 |
| Thousands of dollars | Up to 90<br> days | From 91<br> days to 1<br> year | Other<br> current<br> financial<br> liabilities,<br> Total | From 1 year<br> to 3 years | From 3<br> years to 5 <br> years | More than <br> 5 years | Other non-<br> current<br> financial<br> liabilities,<br> Total | Total |
| Bonds obligations | - | 325234 | 325234 | 731936 | 1082853 | 4162531 | 5977320 | 6302554 |
| Bank borrowings | 91845 | 219854 | 311699 | 414511 | 322845 | 207111 | 944467 | 1256166 |
| Swap and Forward | 2125 | 252 | 2377 | 10140 | 116 | 7245 | 17501 | 19878 |
| Other financial liabilities | 69160 | - | 69160 | - | - | - | - | 69160 |
| Total other financial liabilities (a) | 163130 | 545340 | 708470 | 1156587 | 1405814 | 4376887 | 6939288 | 7647758 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 |
| Thousands of dollars  | Up to 90 <br> days | From 91 <br> days to 1 <br> year | Total <br> Current | From 1 year<br> to 3 years | From 3 <br> years to 5 <br> years | More than <br> 5 years | Total non-<br> current | Total |
| Lease liabilities | 18605 | 37218 | 55823 | 98028 | 83634 | 777575 | 959237 | 1015060 |
| Total lease liabilities (b) | 18605 | 37218 | 55823 | 98028 | 83634 | 777575 | 959237 | 1015060 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 | 12-31-2025 |
| Thousands of dollars  | Up to 90 <br> days | From 91 <br> days to 1 <br> year | Total <br> Current | From 1 year<br> to 3 years | From 3 <br> years to 5 <br> years | More than <br> 5 years | Total non-<br> current | Total |
| Trade and other payables | 1002999 | 40242 | 1043241 | 53713 | - | - | 53713 | 1096954 |
| Accounts payable to related companies | 9437 | - | 9437 | 15821 | 612 | 7491 | 23924 | 33361 |
| Total accounts payable (c) | 1012436 | 40242 | 1052678 | 69534 | 612 | 7491 | 77637 | 1130315 |
| Total financial liabilities (a) + (b) + (c) | 1194171 | 622800 | 1816971 | 1324149 | 1490060 | 5161953 | 7976162 | 9793133 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
| Thousands of dollars | Up to 90<br> days | From 91<br> days to 1<br> year | Other<br> current<br> financial<br> liabilities,<br> Total | From 1 year<br> to 3 years | From 3<br> years to 5 <br> years | More than <br> 5 years | Other non-<br> current<br> financial<br> liabilities,<br> Total | Total |
| Bonds obligations | 19739 | 67522 | 87261 | 768767 | 711705 | 3149943 | 4630415 | 4717676 |
| Bank borrowings | 28154 | 220673 | 248827 | 728289 | 173907 | - | 902196 | 1151023 |
| Swap and Forward | 12817 | - | 12817 | 189101 | - | - | 189101 | 201918 |
| Total other financial liabilities (a) | 60710 | 288195 | 348905 | 1686157 | 885612 | 3149943 | 5721712 | 6070617 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
| Thousands of dollars  | Up to 90 <br> days | From 91 <br> days to 1 <br> year | Total <br> Current | From 1 year<br> to 3 years | From 3 <br> years to 5 <br> years | More than <br> 5 years | Total non-<br> current | Total |
| Lease liabilities | 15116 | 40735 | 55851 | 104578 | 70490 | 497071 | 672139 | 727990 |
| Total lease liabilities (b) | 15116 | 40735 | 55851 | 104578 | 70490 | 497071 | 672139 | 727990 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 | 12-31-2024 |
| Thousands of dollars  | Up to 90 <br> days | From 91 <br> days to 1 <br> year | Total <br> Current | From 1 year<br> to 3 years | From 3 <br> years to 5 <br> years | More than <br> 5 years | Total non-<br> current | Total |
| Trade and other payables | 741847 | 4124 | 745971 | 35310 | - | - | 35310 | 781281 |
| Accounts payable to related companies | 10563 | - | 10563 | 13655 | 7581 | 4971 | 26207 | 36770 |
| Total accounts payable (c) | 752410 | 4124 | 756534 | 48965 | 7581 | 4971 | 61517 | 818051 |
| Total financial liabilities (a) + (b) + (c) | 828236 | 333054 | 1161290 | 1839700 | 963683 | 3651985 | 6455368 | 7616658 |

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23.4 Derivative Instruments

Derivative instruments recorded as of December 31, 2025 are cash flow hedges. Arauco uses financial derivatives for hedging purposes, such as cross currency swaps (CCS), currency and commodities forwards and interest rate swaps (IRS). Depending on the fair value of each instrument, the position could be either an asset or a liability, and they are listed in the consolidated statements of financial position under other financial assets or other financial liabilities, respectively. The effects for the period are presented in consolidated statement of changes in equity as other comprehensive income or the consolidated statements of comprehensive income as finance income or finance costs, net of differences in exchange rate of the hedged items and the deferred tax.

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| | | |
|:---|:---|:---|
| Financial instruments | 12-31-2025<br>Fair value<br>ThU.S.$ | 12-31-2024<br>Fair value<br>ThU.S.$ |
| Financial assets through profit or loss  | 9862 | 31 |
| Hedging assets <br>through <br>other comprehensive income<br>| 469968 | 8959 |
| Financial liabilities through profit or loss  | (134) | (12) |
| Hedging liabilities <br>through <br>other comprehensive income<br>| (19744) | (201906) |

---

23.4.1. Chile

In order to cover the exposure to variation in cash flows associated with fluctuations in exchange rates, interest rates or commodity prices, Arauco Chile has the following derivatives as of December 31, 2025 and 2024:

Cross currency swaps

Cross currency swaps to cover the exposure to the exchange rate risk generated from bonds denominated in U.F.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | 12-31-2025 | 12-31-2024 |
| Bond | Institution | Amount U.S.$ | Amount U.F. | Starting date | Ending date | fair value<br>ThU.S.$ | fair value<br>ThU.S.$ |
| F | BCI | 14000009 | 363636 | 08-03-2021 | 10-30-2029 | 2436 | 757 |
| F | Scotiabank | 14016821 | 363636 | 09-07-2021 | 10-30-2029 | 2585 | 922 |
| F | Banco de Chile | 13809842 | 363636 | 05-18-2018 | 10-30-2029 | 2307 | 493 |
| F | BCI | 55419446 | 1454544 | 04-28-2023 | 10-30-2029 | 9283 | 2133 |
| P | BCI | 48997966 | 1272728 | 08-03-2021 | 11-15-2032 | 10030 | 3793 |
| P | Itau | 26987645 | 636363 | 11-07-2023 | 11-15-2032 | 1346 | (2055) |
| P | Santander | 53139786 | 1272726 | 11-13-2023 | 11-15-2032 | 3272 | (4577) |
| R | Deutsche | 128926012 | 3000000 | 03-19-2024 | 04-01-2035 | 5565 | (14300) |
| R | JP Morgan | 86147464 | 2000000 | 03-25-2024 | 04-01-2035 | 3371 | (9016) |
| S | Santander | 201340031 | 5000000 | 10-27-2016 | 11-15-2026 | 19539 | (4962) |
| W | Goldman Sachs | 80588305 | 2000000 | 12-06-2018 | 10-10-2028 | 6881 | (4155) |
| W | Scotiabank | 40537926 | 1000000 | 12-11-2018 | 10-10-2028 | 3008 | (2392) |
| X | Santander | 216372290 | 5500000 | 10-30-2018 | 10-10-2038 | 19011 | (24268) |
| Y | JP Morgan | 89387460 | 2000000 | 06-12-2023 | 04-10-2032 | (2064) | (13808) |
| Z | Santander | 90274363 | 2000000 | 06-14-2023 | 04-10-2032 | (3329) | (15414) |
| Z | Banco de Chile | 44572044 | 1000000 | 06-26-2023 | 04-10-2032 | (808) | (6367) |
| Z | JP Morgan | 89131686 | 2000000 | 06-23-2023 | 04-10-2032 | (1043) | (12780) |
| AB | BCI | 131196937 | 3000000 | 06-26-2023 | 05-15-2033 | 1705 | (15895) |
| AB | Banco de Chile | 43601403 | 1000000 | 07-27-2023 | 05-15-2033 | 869 | (4983) |
| AB | Itau | 43654189 | 1000000 | 07-27-2023 | 05-15-2033 | 764 | (4778) |
| AC | Scotiabank | 40788609 | 1000000 | 03-04-2025 | 04-01-2034 | 3569 | - |
| AE | BCI | 162944120 | 4000000 | 01-24-2025 | 04-01-2034 | 13177 | - |
| AE | Bank of America | 40890553 | 1000000 | 02-15-2025 | 04-01-2034 | 3111 | - |
| AE | Scotiabank | 38659980 | 1000000 | 01-29-2025 | 04-01-2034 | 5694 | - |
| AE | Santander | 41198154 | 1000000 | 02-25-2025 | 04-01-2034 | 2684 | - |
| AE | JP Morgan | 40538132 | 1000000 | 02-27-2025 | 04-01-2034 | 3929 | - |
| AE | Banco de Chile | 41760550 | 1000000 | 03-07-2025 | 04-01-2034 | 2311 | - |
| AG | Santander | 215879469 | 5000000 | 12-03-2025 | 10-05-2032 | 2448 | - |
| AG | JP Morgan | 86369477 | 2000000 | 12-04-2025 | 10-05-2032 | 1713 | - |
| AG | BCI | 43263775 | 1000000 | 12-11-2025 | 10-05-2032 | 519 | - |
| AG | Banco de Chile | 43577011 | 1000000 | 12-12-2025 | 10-05-2032 | 300 | - |
|  |  |  |  |  |  | **124183**  | (131652) |

---

Cross currency swaps contracts to cover the exposure to the risk of the exchange rate for bank contracts in Euro.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | 12-31-2025 | 12-31-2024 |
| Institution | Amount U.S.$ | Amount EUR | Starting date | Ending date | fair value<br>ThU.S.$ | fair value<br>ThU.S.$ |
| Santander | 55844706 | 52941176 | 06-15-2021 | 12-15-2029 | (2123) | (9494) |
| Banco de Chile | 27922353 | 26470588 | 06-15-2021 | 12-15-2029 | (948) | (4243) |
| MUFG | 55844706 | 52941176 | 06-15-2021 | 12-15-2029 | (1941) | (8974) |
| JP Morgan | 125650588 | 105882353 | 06-15-2021 | 12-15-2029 | (3604) | (17682) |
| HSBC Bank | 27922353 | 26470588 | 06-15-2021 | 12-15-2029 | (1015) | (4488) |
|  |  |  |  |  | (9631) | (44881) |

---

Interest Rate Swap

Interest rate swap, a financial instrument intended to hedge the variability of cash flows by fixing the interest rate on variable rate debt denominated in the same currency (USD).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | 12-31-2025 | 12-31-2024 |
| Institution | Amount U.S.$ | Starting date | Ending date | fair value<br>ThU.S.$ | fair value<br>ThU.S.$ |
| Banco de Chile | 122448980 | 11-12-2025 | 08-15-2032 | 282 |  |
| Santander | 177551020 | 11-13-2025 | 08-15-2030 | (42) |  |
|  |  |  |  | 240 |  |

---

Forward

Non-Delivery Forward (NDF) to cover the exposure to exchange rate risk in Brazilian real currency (BRL), in relation to payments associated with the Sucuriú project.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | Amount |  |  | 12-31-2025<br>fair value | 12-31-2024<br>fair value |
| Exchange rate | Institution | ThU.S.$ | Starting date | Ending date | ThU.S.$ | ThU.S.$ |
| BRLUSD | JP Morgan | 50000000 | 12-11-2024 | 02-18-2025 | - | (1119) |
| BRLUSD | Santander Chile | 43000000 | 12-11-2024 | 02-18-2025 | - | (1106) |
| BRLUSD | Bank of America | 73000000 | 12-11-2024 | 03-26-2025 | - | (1773) |
| BRLUSD | HSBC | 70000000 | 12-13-2024 | 05-15-2025 | - | (1732) |
| BRLUSD | SMBC | 73000000 | 12-13-2024 | 06-25-2025 | - | (1897) |
| BRLUSD | MUFG | 50000000 | 12-16-2024 | 08-18-2025 | - | (999) |
| BRLUSD | Santander Chile | 48000000 | 12-16-2024 | 08-18-2025 | - | (854) |
| BRLUSD | Bank of America | 50000000 | 12-17-2024 | 09-24-2025 | - | (237) |
| BRLUSD | JP Morgan | 44000000 | 12-17-2024 | 09-24-2025 | - | 5 |
| BRLUSD | Santander Chile | 50000000 | 12-18-2024 | 11-17-2025 | - | (223) |
| BRLUSD | JP Morgan | 50000000 | 12-18-2024 | 11-17-2025 | - | (95) |
| BRLUSD | HSBC  | 29000000 | 12-18-2024 | 11-17-2025 | - | (66) |
| BRLUSD | SMBC | 50000000 | 12-19-2024 | 12-17-2025 | - | 631 |
| BRLUSD | JP Morgan | 50000000 | 12-19-2024 | 12-17-2025 | - | (120) |
| BRLUSD | Bank of America | 21000000 | 12-19-2024 | 12-17-2025 | - | (72) |
| BRLUSD | MUFG | 50000000 | 12-20-2024 | 02-19-2026 | - | (934) |
| BRLUSD | Mizuho | 69000000 | 12-20-2024 | 02-19-2026 | 13630 | (1450) |
| BRLUSD | Bank of America | 51000000 | 02-12-2025 | 02-19-2026 | 6391 | - |
| BRLUSD | Itau | 50000000 | 10-09-2025 | 02-19-2026 | (204) | - |
| BRLUSD | MUFG | 50000000 | 12-23-2024 | 03-25-2026 | - | (456) |
| BRLUSD | Mizuho | 50000000 | 12-23-2024 | 03-25-2026 | 10526 | (496) |
| BRLUSD | SMBC | 28000000 | 12-23-2024 | 03-25-2026 | 5861 | (187) |
| BRLUSD | BNP Paribas | 49000000 | 02-12-2025 | 03-25-2026 | 6025 | - |
| BRLUSD | HSBC Bank | 15000000 | 02-12-2025 | 03-25-2026 | 1196 | - |
| BRLUSD | Itau | 50000000 | 10-07-2025 | 03-25-2026 | (415) | - |
| BRLUSD | Santander Chile | 50000000 | 12-26-2024 | 05-15-2026 | 10918 | (90) |
| BRLUSD | BNP Paribas | 86000000 | 12-26-2024 | 05-15-2026 | 18564 | (479) |
| BRLUSD | Goldman Sachs | 27000000 | 05-29-2025 | 05-15-2026 | 2219 | - |
| BRLUSD | Deutsche | 50000000 | 10-08-2025 | 05-15-2026 | (252) | - |
| BRLUSD | MUFG | 50000000 | 12-27-2024 | 06-24-2026 | 11079 | (60) |
| BRLUSD | BNP Paribas | 50000000 | 12-27-2024 | 06-24-2026 | 11229 | 82 |
| BRLUSD | Mizuho | 32000000 | 12-27-2024 | 06-24-2026 | 7153 | 12 |
| BRLUSD | BBVA | 31000000 | 05-28-2025 | 06-24-2026 | 2833 | - |
| BRLUSD | Goldman Sachs | 50000000 | 10-10-2025 | 06-24-2026 | 715 | - |
| BRLUSD | Bank of America | 50000000 | 01-17-2025 | 08-17-2026 | 8929 | - |
| BRLUSD | HSBC Bank | 27000000 | 05-28-2025 | 08-17-2026 | 2283 | - |
| BRLUSD | Goldman Sachs | 50000000 | 10-14-2025 | 08-17-2026 | 1124 | - |
| BRLUSD | Bank of America | 62500000 | 01-21-2025 | 09-25-2026 | 11317 | - |
| BRLUSD | MUFG | 62500000 | 01-21-2025 | 09-25-2026 | 11429 | - |
| BRLUSD | Mizuho | 94000000 | 02-07-2025 | 09-25-2026 | 11721 | - |
| BRLUSD | Goldman Sachs | 50000000 | 10-16-2025 | 09-25-2026 | 358 | - |
| BRLUSD | Mizuho | 60000000 | 01-22-2025 | 11-16-2026 | 10241 | - |
| BRLUSD | HSBC Bank | 60000000 | 01-22-2025 | 11-16-2026 | 9549 | - |
| BRLUSD | MUFG | 40000000 | 02-06-2025 | 11-16-2026 | 5332 | - |
| BRLUSD | BBVA | 30000000 | 10-16-2025 | 11-16-2026 | 315 |  |
| BRLUSD | Mizuho | 60000000 | 01-23-2025 | 12-21-2026 | 9834 | - |
| BRLUSD | Bank of America | 66000000 | 02-05-2025 | 12-21-2026 | 8902 | - |
| BRLUSD | SMBC | 20000000 | 10-16-2025 | 12-21-2026 | 1 | - |
| BRLUSD | Bank of America | 55000000 | 01-23-2025 | 02-18-2027 | 8586 | - |
| BRLUSD | HSBC Bank | 6000000 | 05-28-2025 | 02-18-2027 | 483 | - |
| BRLUSD | Itau | 30000000 | 10-14-2025 | 02-18-2027 | 564 | - |
| BRLUSD | BNP Paribas | 54000000 | 01-24-2025 | 03-22-2027 | 8299 | - |
| BRLUSD | MUFG | 54000000 | 01-24-2025 | 03-22-2027 | 8335 | - |
| BRLUSD | Citibank | 20000000 | 10-07-2025 | 03-22-2027 | (74) | - |
| BRLUSD | BNP Paribas | 52000000 | 01-27-2025 | 05-17-2027 | 8743 | - |
| BRLUSD | SMBC | 52000000 | 01-27-2025 | 05-17-2027 | 8250 | - |
| BRLUSD | BNP Paribas | 106000000 | 02-04-2025 | 05-17-2027 | 15155 | - |
| BRLUSD | BNP Paribas | 47000000 | 01-28-2025 | 06-23-2027 | 7433 | - |
| BRLUSD | MUFG | 63000000 | 02-04-2025 | 06-23-2027 | 8640 | - |
| BRLUSD | MUFG | 42000000 | 01-28-2025 | 08-16-2027 | 6651 | - |
| BRLUSD | BNP Paribas | 42000000 | 01-29-2025 | 08-16-2027 | 6761 | - |
| BRLUSD | Bank of America | 104000000 | 02-03-2025 | 08-16-2027 | 14259 | - |
| BRLUSD | BNP Paribas | 56000000 | 01-29-2025 | 09-22-2027 | 8910 | - |
| BRLUSD | Mizuho | 44000000 | 02-03-2025 | 09-22-2027 | 6719 | - |
| BRLUSD | Goldman Sachs | 26000000 | 05-27-2025 | 09-22-2027 | 1944 | - |
| BRLUSD | Itau | 50000000 | 09-12-2025 | 09-22-2027 | 335 | - |
| BRLUSD | Mizuho | 26000000 | 01-29-2025 | 11-17-2027 | 4219 | - |
| BRLUSD | Mizuho | 36000000 | 01-31-2025 | 11-17-2027 | 5257 | - |
| BRLUSD | BBVA | 21000000 | 05-27-2025 | 11-17-2027 | 1537 | - |
| BRLUSD | Mizuho | 31000000 | 01-29-2025 | 12-15-2027 | 5079 | - |
|  |  |  |  |  | **334888**  | **(13715)**  |

---

Non-Delivery Forward (NDF) to cover the exposure to exchange rate risk in Brazilian real currency (BRL), generated by lease liabilities associated with the Sucuriú project.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | Amount  |  |  | 12-31-2025 <br>fair value | 12-31-2024<br>fair value |
| Exchange rate | Institution | ThU.S.$ | Starting date | Ending date | ThU.S.$ | ThU.S.$ |
| BRLUSD | MUFG | 50000000 | 12-24-2025 | 02-19-2026 | 577 |  |
| BRLUSD | MUFG | 50000000 | 12-24-2025 | 03-25-2026 | 574 |  |
| BRLUSD | MUFG | 60000000 | 12-24-2025 | 05-15-2026 | 1565 |  |
| BRLUSD | JP Morgan | 77000000 | 12-23-2025 | 06-24-2026 | 1565 |  |
| BRLUSD | Santander Chile  | 77000000 | 12-22-2025 | 08-17-2026 | 97 |  |
| BRLUSD | Santander Chile  | 75000000 | 12-22-2025 | 08-17-2026 | 95 |  |
| BRLUSD | Santander Chile  | 40000000 | 12-22-2025 | 11-16-2026 | 56 |  |
| BRLUSD | Santander Chile  | 60000000 | 12-22-2025 | 12-21-2026 | 102 |  |
| BRLUSD | JP Morgan | 55000000 | 12-23-2025 | 02-18-2027 | 1092 |  |
| BRLUSD | JP Morgan | 50000000 | 12-23-2025 | 02-18-2027 | 993 |  |
| BRLUSD | JP Morgan | 53000000 | 12-23-2025 | 03-22-2027 | 1068 |  |
| BRLUSD | JP Morgan | 47000000 | 12-23-2025 | 06-23-2027 | 972 |  |
| BRLUSD | Santander Chile  | 63000000 | 12-22-2025 | 06-23-2027 | 80 |  |
| BRLUSD | JP Morgan | 44000000 | 12-23-2025 | 09-22-2027 | 956 |  |
| BRLUSD | Santander Chile  | 25000000 | 12-22-2025 | 12-15-2027 | 69 |  |
|  |  |  |  |  | 9861 |  |

---

23.4.2. Uruguay

Forward

As of December 31, 2025 and 2024, Arauco through its subsidiaries as a joint operation (50%) in Uruguay maintained the following forward contracts in force and effect for the purposes of ensuring an exchange rate for sale of dollars:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Exchange rate | Institution | 12-31-2025<br>notional<br>ThU.S.$ | 12-31-2025<br>fair value<br>ThU.S.$ | 12-31-2024<br>notional<br>ThU.S.$ | 12-31-2024<br>fair value<br>ThU.S.$ |
| UYUUSD | HSBC - Uruguay | 12000 | 1054 | - | - |
| UYUUSD | Citibank U.K. | 4050 | 230 | 1450 | 41 |
| UYUUSD | Itaú - Uruguay | 9600 | 616 | 1150 | 23 |
| UYUUSD | Banco de la República Oriental de Uruguay | 3450 | 527 | - | - |
| UYUUSD | HSBC - Uruguay | - | - | 10245 | (880) |
| UYUUSD | Citibank U.K. | - | - | 1350 | (27) |
| UYUUSD | Itaú - Uruguay | - | - | 11395 | (703) |
| UYUUSD | Banco de la República Oriental de Uruguay | - | - | 3825 | (166) |
| UYUUSD | JPMorgan Chase Bank U.K. | - | - | 4620 | (348) |
|  |  |  | **2427**  |  | **(2060)**  |

---

Commodity swap

Arauco Uruguay's profits and through its subsidiaries as a joint operation (50%),

also face exposure to the price variation of certain fuels, as occurs with Fuel Oil N°6, which is used during the pulp manufacturing process. In order to minimize this risk, the volatility of future flows associated to the purchase of Fuel Oil No. 6 through forwards of this commodity. The agreements that are in force and effect as of December 31, 2025 and 2024, are detailed below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Commodity | Institution | 12-31-2025<br>notional <br>ThU.S.$ | 12-31-2025<br>fair value<br>ThU.S.$ | 12-31-2024<br>notional <br>ThU.S.$ | 12-31-2024<br>fair value<br>ThU.S.$ |
| Fuel Oil N°6 | JP Morgan - N.A. | - | - | 970 | 31 |
| Fuel Oil N°6 | DNB Bank ASA  | - | - | 539 | 11 |
| Fuel Oil N°6 | BNP Paribas | - | - | 2000 | 56 |
| Fuel Oil N°6 | JP Morgan - N.A. | 3163 | (497) | 2777 | (149) |
| Fuel Oil N°6 | DNB Bank ASA  | 4520 | (623) | 4181 | (232) |
| Fuel Oil N°6 | BNP Paribas | 6737 | (896) | 4761 | (337) |
|  |  |  | **(2016)**  |  | **(620)**  |

---

23.5 Cash equivalent, loans, receivables and other financial assets

The financial assets measured at amortized cost using the effective interest method and tested for impairment are: cash and cash equivalent, time deposits, repurchase agreements, trade and other current/non-current receivables (with third parties and from related parties).

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. In the consolidated statements of financial position, they are included in line items "Cash and cash equivalents" (certain components of cash and cash equivalents), "Trade and other current/non-current receivables" and "Accounts receivable from related parties".

As of December 31, 2025 and 2024, there are provisions for impairment for ThU.S.$14,511 and ThU.S.$13,297, respectively.

During 2025, Arauco executed contracts relating to the sale of a portfolio of customer receivables. Upon execution of such agreements, the Company performed an assessment to determine whether substantially all the risks and rewards inherent in the transferred receivables had been transferred to the buyer. Based on this evaluation, the Company concluded that the criteria for derecognition of accounts receivables were satisfied.

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Financial assets at amortized cost | **2152427**  | **2165579**  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents (Mutual Funds not included) | 1231754 | **1001261**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | 805485 | 642111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 426269 | 359150 |
| &nbsp;&nbsp;&nbsp;Accounts receivables (net) | 911981 | **1130601**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 679166 | 898717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease receivable | 77319 | 67687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sundry debtors | 34104 | 20206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 57498 | 70367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments | 63404 | 63465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable from related parties | 490 | 10159 |
| &nbsp;&nbsp;&nbsp;Other financial assets | 8692 | **33717**  |

---

23.5.1. Cash and cash equivalents

Includes cash on hand, bank checking account balances and time deposits and other short-term highly liquid investments with an original maturity of three months or less. They are short-term, highly liquid investments that are readily convertible to known amounts of cash, and which are subject to an insignificant risk of changes in value.

The composition of cash and cash equivalents (including the balance of mutual funds displayed in this note as valuation, instruments at fair value with profit or loss) at December 31, 2025 and 2024, classified by currency is as follows:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Cash and cash equivalents | **1284053**  | **1071560**  |
| &nbsp;&nbsp;&nbsp;U.S. dollars | 777505 | 668888 |
| &nbsp;&nbsp;&nbsp;Euro | 15723 | 8754 |
| &nbsp;&nbsp;&nbsp;Brazilian real | 107494 | 117848 |
| &nbsp;&nbsp;&nbsp;Argentine pesos | 43063 | 12642 |
| &nbsp;&nbsp;&nbsp;Mexican pesos | 32564 | 40128 |
| &nbsp;&nbsp;&nbsp;Other currencies | 69274 | 11794 |
| &nbsp;&nbsp;&nbsp;Chilean pesos | 238430 | 211506 |

---

**23.5.2 Time deposits and repurchase agreements:** 

The investment objective of time deposits and repurchase agreements is to maximize in the short-term the amounts of cash surpluses. These instruments are authorized by Arauco's Investment Policy, which allows investing in fixed income securities. These instruments have a maturity of less than three months from the date of acquisition.

**23.5.3 Trade and other receivables:** 

These represent enforceable rights for Arauco resulting from the normal course of the business.

**23.5.4 Sundry debtors**

: These correspond to receivables from sales, services or loans that are not considered within the normal course of the business.

The allowance for doubtful accounts is presented as a deduction of trade and other receivables. The provision for doubtful accounts is established based on an analysis of the age of the portfolio and considering the insurance coverage on accounts receivable. Other conditions are assessed for example when there is objective evidence that Arauco will not receive payments under the original sale terms and when the customer is a party to a bankruptcy court agreement or cessation of payments, and is written-off when Arauco has exhausted all levels of recovery of the receivable in a reasonable time.

**23.5.5 Accounts receivable from related parties**

: Represent enforceable rights for Arauco resulting from the normal course of business, calling normal to the line of business, activity or purpose of exploitation and financing, and which Arauco owns a non-controlling ownership of the counterparty.

The following table sets forth trade and other current/non-current receivables classified by currencies as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Trade and other current receivables | 832166 | 1054707 |
| U.S. dollars | 537861 | 815884 |
| Euros | 16967 | 28149 |
| Brazilian real | 52973 | 38327 |
| Argentine pesos | 22408 | 26569 |
| Mexican pesos | 36149 | 33704 |
| Other currencies | 7910 | 1077 |
| Chilean pesos | 130689 | 92401 |
| U.F. | 27209 | 18596 |
| Accounts receivable from related parties, current | 490 | 10159 |
| U.S. dollars | 48  | 5646  |
| Argentine pesos | - | 1812 |
| Chilean pesos | 442 | 2701 |
| Trade and other non-current receivables | 79325 | 65735 |
| U.S. dollars | 1394 | 2784 |
| Brazilian real | 18623 | 9891 |
| Argentine pesos | 344 | 458 |
| Chilean pesos | 5264 | 1505 |
| U.F. | 53700 | 51097 |

---

23.6 Financial liabilities

Arauco's financial liabilities to the date of these consolidated financial statements are as follows:

---

| | | |
|:---|:---|:---|
| Financial liabilities | 12-31-2025<br>ThU.S.$ | 12-31-2024<br>ThU.S.$ |
| Total financial liabilities | 9793133 | 7616658 |
| Financial liabilities at fair value through profit or loss | 134 | 12 |
| Hedging liabilities | 19744 | 201906 |
| Financial liabilities at amortized cost | 9773255 | 7414740 |

---

The following table sets forth the current portion of the non-current bank borrowings and debt issued as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | 12-31-2025<br>ThU.S.$ | 12-31-2024<br>ThU.S.$ |
| Bank borrowings - current portion | 192719 | 108645 |
| Bonds issued - current portion | 325234 | 87261 |
| Total | 517953 | 195906 |

---

23.7 Financial liabilities measured at amortized cost

Financial liabilities correspond to non-derivative financial instruments with contractual cash-flow payments that can be either fixed or variable.

Also, this category includes those non-derivative financial liabilities for services or goods delivered to Arauco at the end of each reporting period that have not yet been paid. These amounts are not insured and are generally paid within thirty days after being recognized.

At the end of these consolidated financial statements, Arauco includes in this category bank borrowings, bonds issued denominated in U.S. dollars and in U.F., lease liabilities, and trade and other payables.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | 12-31-2025 | 12-31-2024 | 12-31-2025 | 12-31-2024 |
|  | Currency | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
|  |  | Amortized cost | Amortized cost | Fair value | Fair value |
| Total financial liabilities |  | 9773255 | 7414740 | 9659760 | 6799888 |
| Bonds issued | U.S. dollar | 3401034 | 2898249 | 3210190 | 2638226 |
| Bonds issued | U.F. | 2901520 | 1819427 | 2791889 | 1404819 |
| Bank borrowings | U.S. dollar | 768728 | 626169 | 945060 | 673243 |
| Bank borrowings | Euro | 294451 | 323417 | 305099 | 336122 |
| Bank borrowings | Brazilian real | 192987 | 201437 | 192987 | 201437 |
| Other financial liabilities | U.S. dollar | 69160 | - | 69160 | - |
| Lease liabilities | U.F. | 23539 | 21494 | 23539 | 21494 |
| Lease liabilities | Chilean pesos | 49997 | 65820 | 49997 | 65820 |
| Lease liabilities | Brazilian real | 794135 | 504213 | 794135 | 504213 |
| Lease liabilities | Mexican pesos | 977 | 1107 | 977 | 1107 |
| Lease liabilities | U.S. dollar | 145491 | 133934 | 145491 | 133934 |
| Lease liabilities | Euro | 323 | 408 | 323 | 408 |
| Lease liabilities | Other currencies | 598 | 1014 | 598 | 1014 |
| Trade and other payables | U.S. dollar | 181744 | 212689 | 181744 | 212689 |
| Trade and other payables | Euro | 37180 | 21414 | 37180 | 21414 |
| Trade and other payables | Brazilian real | 448293 | 81662 | 448293 | 81662 |
| Trade and other payables | Argentine pesos | 41240 | 47373 | 41240 | 47373 |
| Trade and other payables | Mexican pesos | 23199 | 24199 | 23199 | 24199 |
| Trade and other payables | Other currencies | 30083 | 16411 | 30083 | 16411 |
| Trade and other payables | Chilean pesos | 294552 | 339388 | 294552 | 339388 |
| Trade and other payables | U.F. | 40663 | 38145 | 40663 | 38145 |
| Accounts payable to related parties | U.S. dollar | 24483 | 26633 | 24483 | 26633 |
| Accounts payable to related parties | Brazilian real | - | 3007 | - | 3007 |
| Accounts payable to related parties | Chilean pesos | 8878 | 7130 | 8878 | 7130 |

---

The financial liabilities at amortized cost presented in the consolidated statements of financial position as of December 31, 2025 and 2024 are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2025 | 12-31-2025 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
|  | Current | Non-current | Total |
| Other financial liabilities | 706093 | 6921787 | 7627880 |
| Lease liabilities | 55823 | 959237 | 1015060 |
| Trade and other payables | 1043241 | 53713 | 1096954 |
| Accounts payable to related parties | 9437 | 23924 | 33361 |
| Total financial liabilities at amortized cost | 1814594 | 7958661 | 9773255 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 12-31-2024 | 12-31-2024 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
|  | Current | Non-current | Total |
| Other financial liabilities | 336088 | 5532611 | 5868699 |
| Lease liabilities | 55851 | 672139 | 727990 |
| Trade and other payables | 745971 | 35310 | 781281 |
| Accounts payable to related parties | 10563 | 26207 | 36770 |
| Total financial liabilities at amortized cost | 1148473 | 6266267 | 7414740 |

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23.8 Cash flow hedges reserve reconciliation

The following table sets forth the reconciliation balances of cash flow hedges presented in the consolidated statements of comprehensive income:

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| | | | |
|:---|:---|:---|:---|
|  | January – December | January – December | January – December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening balance  | (50012) | (64952) | (10112) |
| Gains (losses) on cash flow hedges, before tax | 461238 | 27762 | (72816) |
| Recycle of cash flow hedges to profit or loss | - | (6747) | (1634) |
| Income tax relating to cash flow hedges of other comprehensive income | (123732) | (6075) | 19610 |
| Closing balance | 287494 | (50012) | (64952) |

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23.9 Capital disclosures

23.9.1 Information on objectives, policies and processes applied by the Company regarding capital management

Arauco's policies on capital management have the objective of:

&nbsp;&nbsp;&nbsp;&nbsp;a) Ensuring business continuity and normal operations in the long-term;

&nbsp;&nbsp;&nbsp;&nbsp;b) Ensuring funding for new investments to achieve sustainable growth over time;

&nbsp;&nbsp;&nbsp;&nbsp;c) Keeping adequate capital structure considering all economic cycles that impact the business and the nature of the industry; and

&nbsp;&nbsp;&nbsp;&nbsp;d) Maximizing the Company's value and providing an adequate return to shareholders,

23.9.2 Qualitative information on objectives, policies and processes applied by the Company regarding capital management

Arauco determines and manages its capital structure based on its carrying amount of equity plus its financial debt (bank borrowings, bonds and lease liabilities).

23.9.3 Quantitative Information on capital management

The financial safeguards to which Arauco is subject are shown in the following table:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 | Interest | Debt level |
| Instrument | ThU.S.$ | ThU.S.$ | coverage >= 2,0x | (1) <= 1,2x |
| Domestic bonds  | 2901520 | 1819427 | N/R | ü |
| Term loan facility | - | 273686 | ü | ü |
| Term loan facility | 212487 | 212301 | ü | ü |
| ECA loan (Sucuriú) | 150266 | - | ü | ü |
| Loan A y B facilities  | 290622 | - | ü | ü |
| ECA loan (MAPA) | 294451 | 323417 | ü | ü |

---

N/R: Not required for the financial obligation.

(1) Debt to equity ratio (financial debt divided by equity plus non-controlling interests).

As of December 31, 2025 and 2024, Arauco has complied with all of its financial covenants.

The following table sets forth the credit ratings of our debt instruments as of December 31, 2025, are as follows:

Instrument Standard & Poor's Fitch Ratings Moody's Feller Rate <br> Local bonds - AA - AA <br> Foreign bonds BBB- BBB Baa3 -

Capitalization requirements are established based on the Company's financial needs and on maintaining an adequate liquidity level and complying with financial covenants established in current debt arrangements. The Company manages its capital structure and makes adjustments based on the prevailing economic conditions in order to mitigate the risks associated with adverse market conditions and based on opportunities that may arise to improve the Company's level of liquidity.

The capitalization of Arauco as of December 31, 2025 and 2024 is as follows:

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| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Equity | 9683478 | 8723715 |
| Bank borrowings | 1256166 | 1151023 |
| Lease liabilities | 1015060 | 727990 |
| Bonds issued | 6302554 | 4717676 |
| Capitalization | 18257258 | 15320404 |

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23.10 Risk management

Arauco's financial instruments are exposed to various financial risks: credit risk, liquidity risk and market risk (including exchange rate risks, interest rate risks and price risks). Arauco's overall risk management program focuses on uncertainty in financial markets and aims to minimize potential adverse effects on Arauco's financial profitability.

Arauco's financial risk management is overseen by the Corporate Finance Department. This department identifies, assesses and hedges financial risks in close collaboration with Arauco's operational units. The company is not actively involved in trading its financial assets for speculative purposes.

23.10.1 Type of risk: Credit risk

Description

Credit risk refers to financial uncertainty at different periods of time relating to the fulfillment of obligations with counterparties, at the time of exercising the contract rights to receive cash or other financial assets on behalf of Arauco.

Explanation of credit risk exposure and how this risk arises

Arauco's exposure to credit risk is directly related to each of its customer's individual abilities to fulfill their contractual commitments, reflected in trade receivables.

Accounts exposed to credit risk are trade receivables, financial lease debtors and other debtors.

Arauco does not have a securitized portfolio.

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| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
|  | ThU.S.$ | ThU.S.$ |
| Current receivables |  |  |
| &nbsp;&nbsp;&nbsp;Trade receivables | 679130 | 898681 |
| &nbsp;&nbsp;&nbsp;Lease receivable | 24033 | 17247 |
| &nbsp;&nbsp;&nbsp;Sundry debtors | 12017 | 9531 |
| &nbsp;&nbsp;&nbsp;Other receivables | 55372 | 68459 |
| &nbsp;&nbsp;&nbsp;Prepayments | 61614 | 60789 |
| &nbsp;&nbsp;&nbsp;Net subtotal | 832166 | 1054707 |
| &nbsp;&nbsp;&nbsp;Trade receivables | 689215 | 908241 |
| &nbsp;&nbsp;&nbsp;Lease receivable | 24033 | 17247 |
| &nbsp;&nbsp;&nbsp;Sundry debtors | 14098 | 11056 |
| &nbsp;&nbsp;&nbsp;Other receivables | 56366 | 69463 |
| &nbsp;&nbsp;&nbsp;Prepayments | 61614 | 60789 |
| &nbsp;&nbsp;&nbsp;Gross subtotal | 845326 | 1066796 |
| &nbsp;&nbsp;&nbsp;Provision for doubtful trade receivables | 10085 | 9560 |
| &nbsp;&nbsp;&nbsp;Provision for doubtful lease receivable | - | - |
| &nbsp;&nbsp;&nbsp;Provision for doubtful sundry debtors | 2081 | 1525 |
| &nbsp;&nbsp;&nbsp;Provision for doubtful other receivables | 994 | 1004 |
| &nbsp;&nbsp;&nbsp;Subtotal bad debt | 13160 | 12089 |
| Non-current receivables |  |  |
| &nbsp;&nbsp;&nbsp;Trade receivables | 36 | 36 |
| &nbsp;&nbsp;&nbsp;Lease receivable | 53286 | 50440 |
| &nbsp;&nbsp;&nbsp;Sundry debtors | 22087 | 10675 |
| &nbsp;&nbsp;&nbsp;Other receivables | 2126 | 1908 |
| &nbsp;&nbsp;&nbsp;Prepayments | 1790 | 2676 |
| &nbsp;&nbsp;&nbsp;Net subtotal  | 79325 | 65735 |
| &nbsp;&nbsp;&nbsp;Trade receivables | 1387 | 1244 |
| &nbsp;&nbsp;&nbsp;Lease receivable | 53286 | 50440 |
| &nbsp;&nbsp;&nbsp;Sundry debtors | 22087 | 10675 |
| &nbsp;&nbsp;&nbsp;Other receivables | 2126 | 1908 |
| &nbsp;&nbsp;&nbsp;Prepayments  | 1790 | 2676 |
| &nbsp;&nbsp;&nbsp;Gross subtotal | 80676 | 66943 |
| &nbsp;&nbsp;&nbsp;Provision for doubtful trade receivables | 1351 | 1208 |
| &nbsp;&nbsp;&nbsp;Provision for doubtful lease receivable | -  | -  |
| &nbsp;&nbsp;&nbsp;Provision for doubtful sundry debtors | -  | -  |
| &nbsp;&nbsp;&nbsp;Provision for doubtful other receivables | -  | -  |
| &nbsp;&nbsp;&nbsp;Subtotal bad debt | 1351 | 1208 |

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Explanation of risk management objectives, policies and processes, and measurement methods

The Credit and Collections Sub-management, dependent from the Treasury Department, is the area entrusted with minimizing the credit risk of the accounts receivable, supervising the delinquency of the accounts. The regulations and procedures applicable for the control and administration of the Arauco Group can be found in the Corporate Credit Policy.

As of December 31, 2025, Arauco's balance for commercial debtors was ThU.S.$690,602 of which, according to the agreed sales conditions, 49.96% corresponded to sales on credit (open account), 42.44% to sales with letters of credit and 7.60% to other types of sales. The client with the highest outstanding balance, corresponding to sales through a credit line represented 3.51% of the total accounts receivable as of that date.

Below we provide detail regarding accounts receivable, classified in tranches:

December 31, 2025

Age of trade receivables

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Days | Non-<br> past due | 1 to 30 | 31 to 60 | 61 to 90 | 91 to 120 | 121 to 150 | 151 to 180 | 181 to 210 | 211 to 250 | More<br> than<br> 250 | Total |
| N° debtor | 1435 | 617 | 41 | 24 | 13 | 5 | 3 | 5 | 7 | 120 | 2270 |
| ThU.S.$ | 646992 | 33902 | 1356 | 544 | 50 | 84 | 86 | 92 | 207 | 7289 | 690602 |
| % | 93.68% | 4.91% | 0.20% | 0.08% | 0.01% | 0.01% | 0.01% | 0.01% | 0.03% | 1.06% | 100% |

---

December 31, 2024

Age of trade receivables

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Days | Non-<br> past due | 1 to 30 | 31 to 60 | 61 to 90 | 91 to 120 | 121 to 150 | 151 to 180 | 181 to 210 | 211 to 250 | More<br> than<br> 250 | Total |
| N° debtor | 1472 | 759 | 198 | 25 | 54 | 17 | 5 | 10 | 8 | 37 | 2585 |
| ThU.S.$ | 866818 | 34456 | 1922 | 716 | 50 | 31 | 8 | 53 | 151 | 5280 | 909485 |
| % | 95.31% | 3.78% | 0.21% | 0.08% | 0.01% | 0.00% | 0.00% | 0.01% | 0.02% | 0.58% | 100% |

---

Arauco applies IFRS 9 using the simplified method to determine the provision for expected credit losses of its commercial debtors, corresponding to accounts receivable from customers with credit line. The applied model is based on a scoring system that provides a score to each customer, which considers different variables such as country risk, payment behavior and financial condition of the debtor, among others, thus assigning a probability of default to each customer for the next 12 months. This factor is applied to the balance receivable of each debtor, determining the provision for expected credit losses.

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| | | |
|:---|:---|:---|
|  | 12-31-2025<br>ThU.S.$ | 12-31-2024<br>ThU.S.$ |
| Letters of credit | 293100 | 518872 |
| Credit line | 345061 | 382117 |
| Others | 52441 | 8496 |
| Total trade receivables  | 690602 | 909485 |
| Total allowance for doubtful accounts | (11436) | (10768) |
| Total net trade receivables | 679166 | 898717 |

---

Arauco does not conduct rescheduling or renegotiations with its clients that imply an amendment to the maturity of the invoices and, should it be necessary, any debt renegotiation with a customer shall be analyzed on a case-by-case basis and subjected to the approval of the Corporate Finance Management.

Regarding the loss allowance for trade receivables and others, below we provide detail for the movements as of December 31, 2025, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
|  | December <br> 2025 | December<br>2024 | December<br>2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Opening loss allowance as at January 1 | 13297 | 12473 | 7960 |
| Increase due to impairment loss | 1687 | 2840 | 3507 |
| Increase due to business combination | - | - | 2043 |
| Used impairment | (61) | (86) | - |
| Unused impairment reversed | (791) | (1587) | (1037) |
| Increase (decrease) due to exchange differences | 379 | (343) | - |
| Closing balance | 14511 | 13297 | 12473 |

---

Currently there is a policy for provisions for doubtful accounts receivable under IFRS for all the Arauco group companies.

Explanation regarding the sales risk with letters of credit

Sales with letters of credit mainly occur in markets in Asia and the Middle East. Periodically, a credit assessment is conducted regarding the banks that issue the letters of credit with the purpose of obtaining their score over the basis of risk-qualification ratings, country-specific risk and financial statements. The decision of approving the issuing bank or asking for confirmation of the letter of credit is made in consideration to this assessment.

Explanation of the sales risk with credit line

Sales on credit are subject to the credit limit given to each customer. The approval or rejection of a credit limit for all term sales is carried out by different credit committees, which report to the Corporate Finance Management. The regulations and procedures applicable for the correct control and risk management over the sales on credit are ruled by the Credit Policy

defined for the Arauco group.

Arauco's policy is to take out insurance to cover the sales of companies Celulosa Arauco y Constitución S.A., Maderas Arauco S.A., Forestal Arauco S.A., Arauco Argentina S.A., Arauco do Brasil S.A., Arauco Industria de Paneis S.A., Arauco Europe Coöperatief U.A., Araucomex S.A. de C.V., Arauco Industria de México, S.A. de C.V., Arauco Perú S.A., Arauco North America, Inc y Arauco Canada Ltd.

As another way of minimizing risk and supporting a line of credit approved by the Credit Committee through guarantees, Arauco holds guarantees such as mortgages, pledges, Standby letters of credit, bank performance bonds, promissory notes, borrowings or any other that could be required under the laws of each country, The total amount held in guarantees amounts to ThU.S.$123,405, effective as of December 31, 2025, The procedure for guarantees is regulated by Arauco's Policy on Guarantees, whose purpose is to control their accounting, due date and custody.

The maximum exposure to credit risk is limited to the value at amortized cost of the Debtors' account for sales registered as of the date of this report, minus the percentage of sales insured by the aforementioned credit insurance companies and the guarantees granted in favor of Arauco.

In summary, debt with term sale with credit line covered by the various insurance policies and guarantees amounts to 95.69% and, therefore, Arauco's portfolio exposure amounts to 4.31%.

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| | | |
|:---|:---|:---|
| Secured open accounts receivable | ThU.S.$ | % |
| Total open accounts receivable | **345061**  | **100.00%**  |
| Secured receivables (\*) | 330190 | 95.69% |
| Unsecured receivables | 14871 | 4.31% |

---

(\*) Insured debt is deemed to be the portion of accounts receivable that is covered by a credit company or by guarantees such as standby letters of credit, mortgages, performance bonds, among others.

Investment policy:

Arauco has an Investment Policy which identifies and limits the financial instruments and the entities into which Arauco, is authorized to invest. The Company's Treasury Department is centralized. For the subsidiary in Argentina, the Corporate Finance Department monitors and controls compliance with Arauco financial policies, but its daily treasury activity is managed independently. The Head Office is responsible for carrying out investments, cash flow surplus investments, and short and long-term debt subscriptions. Exceptions to this rule apply to short and long-term debt, and will be for specific investments made through other companies where authorization is required from the Chief Financial Officer.

For financial instruments, the only permitted investments are fixed income investments with adequate liquidity. Each instrument has defined classifications and limits, depending on duration and type of issuer.

Regarding intermediaries (such as banks, securities brokers and dealers of mutual funds that are bank affiliates), a scoring methodology is used to determine the relative degree of risk of each intermediary based on their financial position and assign score points that result in a credit risk rating to each intermediary. Arauco uses this scoring system to determine its investment limits for each intermediary.

The required information to evaluate the various criteria are obtained from published financial statements from the banks under evaluation and from the credit risk ratings of short and long-term debt securities, defined by the regulatory body (Commission for the Financial Market) and carried out by rating agencies authorized by said organization.

Any necessary exceptions regarding investment limits in each particular instrument or entity must have the authorization from Arauco's Chief Financial Officer.

23.10.2 Type of risk: Liquidity risk

Description

This risk corresponds to Arauco's ability to fulfill its financial obligations upon maturity.

Explanation of liquidity risk exposure and how this risk arises

Arauco's exposure to liquidity risk is mainly from its obligations to bondholders, banks and financial institutions, creditors and other payables. Liquidity risk may arise if Arauco is unable to meet the net cash flow requirements, which sustain its operations under both normal and exceptional circumstances.

Explanation of objectives, policies and processes for risk management, and measurement methods

The Corporate Financial Management Division monitors on an ongoing basis the Company's cash flow forecasts based on short and long-term forecasts and available financing alternatives. In order to manage the risk level of financial assets, Arauco follows its investment policy.

The following tables detail Arauco's liquidity analysis for its financial liabilities as of December 31, 2025 and 2024.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |  | Total | Total |  |  |
|  |  |  |  | More <br> than 5 |  | Non |  |  |
|  |  |  |  | Years | Current | Current | Effective |  |
| Tax ID | Name | Currency | Bank borrowings | ThU.S.$ | ThU.S.$ | ThU.S.$ | rate | Nominal rate |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | International Finance Corporation (A loan) | 50405 | 1576 | 85432 | 5.09% | Sofr 6m + 1.3% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | International Finance Corporation (B loan) | 26713 | 2296 | 113911 | 5.20% | Sofr 6m + 1.15% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Inter-American Investment Corporation (A loan) | 50405 | 1576 | 85432 | 5.08% | Sofr 6m + 1.3% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Inter-American Investment Corporation (B loan) | 24932 | 2142 | 106317 | 5.21% | Sofr 6m + 1.15% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | JP Morgan SE / ECA | 267275 | 5446 | 326029 | 4.85% | Sofr 6m + 0.8% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | Euros | BNP paribas / ECA | - | 79770 | 234395 | 1.06% | Fixed 1.06% |
| - | Tecverde S.A. | Brazilian real | Banco Regional de Desenvolvimento do Extremo Sul | - | 92 | - | 5.22% | Fixed 5.10% |
| - | Tecverde S.A. | Brazilian real | Santander | - | 3535 | - | 17.66% | CDI + 2.66% |
| - | Arauco do Brasil S.A. | Brazilian real | Banco Safra S.A. | - | 1839 | 3747 | 16.30% | CDI + 1.40% |
| - | Arauco do Brasil S.A. | Brazilian real | Banco Safra S.A. | - | 12186 | 24901 | 16.30% | CDI + 1.40% |
| - | Arauco do Brasil S.A. | Brazilian real | Itaú Unibanco S.A. | - | 6979 | 59293 | 15.85% | CDI + 0.95% |
| - | Arauco Celulose do Brasil S.A. | Brazilian real | Itaú Unibanco S.A. | - | 68660 | - | 16.52% | CDI + 1.62% |
| - | Arauco Celulose do Brasil S.A. | Brazilian real | Banco BTG Pactual S.A. | - | 18770 | 16330 | 16.46% | CDI + 1.56% |
| - | Arauco Celulose do Brasil S.A. | Brazilian real | Banco Safra S.A. | - | 10139 | - | 16.45% | CDI + 1.55% |
| - | Arauco North America, Inc. | U.S. dollar | Banco Itau Corpbanca - NY Branch | - | 11506 | 215721 | 5.39% | Sofr 6m + 1.55% |
| - | Eufores S.A. | U.S. dollar | BBVA | - | 5094 | - | 3.80% | Fixed 3.80% |
| - | Eufores S.A. | U.S. dollar | Banco República Oriental del Uruguay | - | 39192 | - | 3.75% | Fixed 3.75% |
| - | Eufores S.A. | U.S. dollar | Banco República Oriental del Uruguay | - | 10178 | - | 3.62% | Fixed 3.62% |
| - | Eufores S.A. | U.S. dollar | Itaú | - | 9166 | - | 3.75% | Fixed 3.75% |
| - | Eufores S.A. | U.S. dollar | Santander | - | 22931 | - | 3.88% | Fixed 3.88% |
| - | Eufores S.A. | U.S. dollar | Scotiabank | - | 7639 | - | 3.85% | Fixed 3.85% |
| - | Stora Enso Uruguay S.A. | U.S. dollar | Banco República Oriental del Uruguay | - | 2545 | - | 3.75% | Fixed 3.75% |
| - | Zona Franca Punta Pereira S.A. | U.S. dollar | Banco República Oriental del Uruguay | - | 15270 | - | 3.75% | Fixed 3.75% |
| - | Zona Franca Punta Pereira S.A. | U.S. dollar | Banco República Oriental del Uruguay | - | 5089 | - | 3.62% | Fixed 3.62% |
|  |  |  | Total bank borrowings | **419730**  | **343616**  | **1271508**  |  |  |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | Total | Total |  |  |
|  |  |  |  |  | Non |  |  |
|  |  |  |  | Current | Current | Effective |  |
| Tax ID | Name | Currency | Bonds | ThU.S.$ | ThU.S.$ | rate | Nominal rate |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-F  | 22940 | 63819 | 4.25% | 4.21% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-F  | 9176 | 25528 | 4.24% | 4.21% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-P | 25112 | 134191 | 3.96% | 3.96% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-R | 7777 | 284066 | 3.57% | 3.57% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-S | 223161 | - | 2.43% | 2.39% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-W | 2732 | 136240 | 2.12% | 2.09% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-X | 6430 | 349070 | 2.70% | 2.68% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-Y | 2682 | 100594 | 3.10% | 3.08% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-Z | 6920 | 328679 | 3.18% | 3.17% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AB | 6920 | 349438 | 3.19% | 3.17% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AC | 1384 | 48092 | 3.18% | 3.17% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AE | 12070 | 609584 | 3.07% | 3.08% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AG | 25606 | 1077025 | 3.94% | 3.94% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2027 | 19375 | 519375 | 3.90% | 3.88% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2047 | 22000 | 862000 | 5.50% | 5.50% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2029 | 21250 | 553125 | 4.27% | 4.25% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2049 | 27500 | 1118750 | 5.51% | 5.50% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2030 | 21000 | 573500 | 4.21% | 4.20% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2032 | 30900 | 669950 | 6.20% | 6.18% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2050 | 25750 | 1105125 | 5.16% | 5.15% |
|  |  |  | Total bond liabilities | **520685**  | **8908151**  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | Total | Total |
|  |  |  |  |  | Non |
|  |  |  |  | Current | current |
| Tax ID | Name | Currency | Underlying asset class | ThU.S.$ | ThU.S.$ |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Motor vehicles | 2988 | 7068 |
| 85805200-9 | Forestal Arauco S.A. | Chilean pesos | Motor vehicles | 284 | 117 |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Lands | 709 | 4154 |
| 85805200-9 | Forestal Arauco S.A. | U.S. dollar | Lands | 231 | 479 |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Plants and equipments | 546 | 2018 |
| 85805200-9 | Forestal Arauco S.A. | Chilean pesos | Plants and equipments | 352 | - |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Buildings and constructions | 415 | 2343 |
| - | Arauco Argentina S.A. | U.S. dollar | Buildings and constructions  | 717 | 636 |
| - | Arauco Argentina S.A. | U.S. dollar | Plants and equipments | 587 | 6215 |
| - | Arauco Argentina S.A. | U.S. dollar | Motor vehicles | 1086 | 2794 |
| - | Novo Oeste Gestão de Ativos Florestais S.A. | Brazilian real  | Buildings and constructions  | 3 | - |
| - | Arauco Industria de Paineis S.A. | Brazilian real  | IT equipment | 33 | 28 |
| - | Arauco do Brasil S.A. | Brazilian real  | Buildings and constructions  | 124 | 281 |
| - | Arauco Celulose do Brasil S.A. | Brazilian real  | Lands | 62145 | 1431349 |
| - | Arauco Celulose do Brasil S.A. | Brazilian real  | Buildings and constructions  | 270 | 628 |
| - | Arauco Celulose do Brasil S.A. | Brazilian real  | IT equipment | 182 | 106 |
| - | Mahal Empreendimentos e Participações S.A. | Brazilian real  | Lands | 2471 | 27160 |
| - | Mahal Empreendimentos e Participações S.A. | Brazilian real  | Buildings and constructions  | 3 | - |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Buildings and constructions  | 1812 | 3624 |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Motor vehicles | 34 | - |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Plants and equipments | 150 | - |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Plants and equipments | 4565 | 70771 |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | Chilean pesos | Motor vehicles | 4029 | 7105 |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Motor vehicles | 1732 | 3974 |
| - | Arauco North America, Inc. | U.S. dollar | Buildings and constructions  | 786 | 5020 |
| - | Arauco North America, Inc. | U.S. dollar | Motor vehicles | 2301 | 3592 |
| - | Arauco Canada Limited | Canadian dollar | Motor vehicles | 360 | 283 |
| - | Celulosa y Energía Punta Pereira S.A. | U.S. dollar | Plants and equipments | 640 | 7973 |
| - | Eufores S.A. | U.S. dollar | Lands | 4708 | 54838 |
| - | Eufores S.A. | U.S. dollar | Plants and equipments | 1223 | 1222 |
| - | Eufores S.A. | U.S. dollar | Buildings and constructions  | 206 | 817 |
| 96510970-6 | Maderas Arauco S.A. | Chilean pesos | Motor vehicles | 13068 | 28973 |
| 96510970-6 | Maderas Arauco S.A. | U.F. | Motor vehicles | 4 | - |
| 76879577-0 | E2E SpA. | Chilean pesos | Lands | 36 | - |
| - | Arauco Europe Cooperatief U.A. | Euros | Motor vehicles | 34 | 12 |
| - | Arauco Europe Cooperatief U.A. | Euros | Buildings and constructions  | 93 | 259 |
| - | Araucomex S.A. de C.V. | Mexican pesos | Buildings and constructions  | 323 | 349 |
| - | Araucomex S.A. de C.V. | U.S. dollar | Buildings and constructions  | 2047 | 7027 |
| - | Arauco Industria de México, S.A. de C.V. | Mexican pesos | Motor vehicles | 140 | 247 |
| - | Arauco Industria de México, S.A. de C.V. | U.S. dollar | Plants and equipments | 700 | 936 |
|  |  |  | Total lease liabilities | 112137 | 1682398 |

---

As part of the policy of Arauco, it considers compliance with all accounts payable, whether with related (see Note 13) or third parties, within a period not exceeding 30 days.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | Maturity | Maturity | Total | Total |  |  |
|  |  |  |  | 1 to 2 | More<br> than |  | Non |  |  |
|  |  |  |  | Years | 5 years | Current | current | Effective |  |
| Tax ID | Name | Currency | Bank borrowings | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | rate | Nominal rate |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Bank of Nova Scotia | 293504 |  | 19577 | 293504 | 7.05% | Sofr 6m + 1.75% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | Euros | BNP paribas / ECA | 70330 |  | 71045 | 276988 | 1.10% | Fixed 1.06% |
| - | Tecverde S.A. | Brazilian real | Banco Regional de Desenvolvimento do Extremo Sul | 69 |  | 92 | 69 | 5.22% | Fixed 5.10% |
| - | Tecverde S.A. | Brazilian real | Santander | 2899 |  | - | 2899 | 14.19% | CDI + 2.66% |
| - | Zona Franca Punta Pereira S.A. | U.S. dollar | Banco República Oriental del Uruguay | - |  | 7663 | - | 4.38% | Fixed 4.38% |
| - | Zona Franca Punta Pereira S.A. | U.S. dollar | Banco República Oriental del Uruguay | - |  | 7621 | - | 4.28% | Fixed 4.28% |
| - | Eufores S.A. | U.S. dollar | BBVA | - |  | 9711 | - | 4.50% | Fixed 4.50% |
| - | Eufores S.A. | U.S. dollar | Banco República Oriental del Uruguay | - |  | 28097 | - | 4.38% | Fixed 4.38% |
| - | Stora Enso Uruguay S.A. | U.S. dollar | Banco República Oriental del Uruguay | - |  | 2554 | - | 4.38% | Fixed 4.38% |
| - | Eufores S.A. | U.S. dollar | ITAU | - |  | 12257 | - | 4.50% | Fixed 4.50% |
| - | Eufores S.A. | U.S. dollar | Banco República Oriental del Uruguay | - |  | 11178 | - | 4.28% | Fixed 4.28% |
| - | Eufores S.A. | U.S. dollar | Santander | - |  | 33229 | - | 4.50% | Fixed 4.50% |
| - | Eufores S.A. | U.S. dollar | Scotiabank | - |  | 5109 | - | 4.66% | Fixed 4.66% |
| - | Arauco do Brasil S.A. | Brazilian real | Itaú Unibanco S.A. | 431 |  | 54 | 431 | 13.90% | CDI + 1.75% |
| - | Arauco do Brasil S.A. | Brazilian real | Banco Safra S.A. | 1543 |  | 1654 | 4769 | 13.55% | CDI + 1.40% |
| - | Arauco do Brasil S.A. | Brazilian real | Banco Safra S.A. | 10232 |  | 11093 | 31676 | 13.55% | CDI + 1.40% |
| - | Arauco do Brasil S.A. | Brazilian real | Itaú Unibanco S.A. | 5158 |  | 5023 | 55774 | 13.10% | CDI + 0.95% |
| - | Arauco Celulose do Brasil S.A. | Brazilian real | Itaú Unibanco S.A. | 60315 |  | 7467 | 60315 | 13.77% | CDI + 1.62% |
| - | Arauco Celulose do Brasil S.A. | Brazilian real | Banco BTG Pactual S.A. | 16172 |  | 17853 | 30512 | 13.71% | CDI + 1.56% |
| - | Arauco Celulose do Brasil S.A. | Brazilian real | Banco Safra S.A. | 8871 |  | 9919 | 8871 | 13.70% | CDI + 1.55% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 351 | - | 16.50% | Fixed 16.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 445 | - | 15.65% | Fixed 15.65% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 674 | - | 15.00% | Fixed 15% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 874 | - | 15.00% | Fixed 15% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 338 | - | 12.50% | Fixed 12.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 459 | - | 12.50% | Fixed 12.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 608 | - | 12.50% | Fixed 12.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 330 | - | 12.50% | Fixed 12.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 329 | - | 12.50% | Fixed 12.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Industrial y Comercial de China | - |  | 451 | - | 12.50% | Fixed 12.50% |
| - | Arauco Argentina S.A. | U.S. dollar | BBVA | - |  | 5095 | - | 3.86% | Fixed 3.86% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Galicia | - |  | 5086 | - | 3.50% | Fixed 3.50% |
| - | Arauco Argentina S.A. | U.S. dollar | BBVA | - |  | 5086 | - | 3.50% | Fixed 3.50% |
| - | Arauco Argentina S.A. | U.S. dollar | Banco Galicia Más | - |  | 5074 | - | 3.00% | Fixed 3% |
| - | Arauco North America, Inc. | U.S. dollar | Banco Itau Corpbanca - NY Branch | 12339 |  | 12339 | 228492 | 5.80% | Sofr 6m + 1.55% |
|  |  |  | Total bank borrowings | 481863 |  | 298735 | 994300 |  |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | Total | Total |  |  |
|  |  |  |  |  | Non |  |  |
|  |  |  |  | Current | current | Effective |  |
| Tax ID | Name | Currency | Bonds | ThU.S.$ | ThU.S.$ | rate | Nominal rate |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-F  | 21025 | 76730 | 4.25% | 4.21% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-F  | 8410 | 30692 | 4.25% | 4.21% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-P | 22903 | 140889 | 4.00% | 3.96% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-R | 6878 | 258108 | 3.60% | 3.57% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-S | 4599 | 197365 | 2.40% | 2.39% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-W | 2416 | 122908 | 2.10% | 2.09% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-X | 5687 | 314408 | 2.70% | 2.68% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-Y | 2372 | 91339 | 3.10% | 3.08% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-Z | 6120 | 296805 | 3.20% | 3.17% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AB | 6120 | 315165 | 3.20% | 3.17% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AC | 1224 | 43756 | 3.20% | 3.20% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Barau-AE | 10674 | 549791 | 3.10% | 3.10% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2027 | 19375 | 538750 | 3.88% | 3.88% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2047 | 22000 | 884000 | 5.50% | 5.50% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2029 | 21250 | 574375 | 4.25% | 4.25% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2049 | 27500 | 1146250 | 5.50% | 5.50% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2030 | 21000 | 594500 | 4.20% | 4.20% |
| 93458000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Yankee 2050 | 25750 | 1130875 | 5.15% | 5.15% |
|  |  |  | Total bond liabilities | 235303 | 7306706 |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  | Total | Total |
|  |  |  |  |  | Non |
|  |  |  |  | Current | current |
| Tax ID | Name | Currency | Underlying asset class | ThU.S.$ | ThU.S.$ |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Motor vehicles | 407 | 255 |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Lands | 607 | 7291 |
| 85805200-9 | Forestal Arauco S.A. | U.S. dollar | Lands | 240 | 720 |
| 85805200-9 | Forestal Arauco S.A. | U.F. | Plants and equipments | 2741 | 9030 |
| 85805200-9 | Forestal Arauco S.A. | Chilean pesos | Plants and equipments | 356 | 675 |
| - | Arauco Argentina S.A. | U.S. dollar | Buildings and constructions  | 38 | - |
| - | Arauco Argentina S.A. | U.S. dollar | Plants and equipments | 784 | 6801 |
| - | Arauco Argentina S.A. | U.S. dollar | Motor vehicles | 498 | 165 |
| - | Novo Oeste Gestão de Ativos Florestais S.A. | Brazilian real  | Buildings and constructions  | 3 | 2 |
| - | Arauco Industria de Paineis S.A. | Brazilian real  | IT equipment | 39 | 55 |
| - | Arauco do Brasil S.A. | Brazilian real  | IT equipment | 179 | - |
| - | Arauco do Brasil S.A. | Brazilian real  | Buildings and constructions  | 107 | 327 |
| - | Arauco Celulose do Brasil S.A. | Brazilian real  | Lands | 33010 | 872474 |
| - | Arauco Celulose do Brasil S.A. | Brazilian real  | Buildings and constructions  | 151 | 393 |
| - | Arauco Celulose do Brasil S.A. | Brazilian real  | IT equipment | 75 | 85 |
| - | Mahal Empreendimentos e Participações S.A. | Brazilian real  | Lands | 2186 | 26232 |
| - | Mahal Empreendimentos e Participações S.A. | Brazilian real  | Buildings and constructions  | 3 | 2 |
| 93.458.000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Buildings and constructions  | 1593 | 4785 |
| 93.458.000-1 | Celulosa Arauco y Constitución S.A. | U.F. | Motor vehicles | 83 | 25 |
| 93.458.000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Plants and equipments | 4025 | 68625 |
| 93.458.000-1 | Celulosa Arauco y Constitución S.A. | Chilean pesos | Motor vehicles | 10059 | 10299 |
| 93.458.000-1 | Celulosa Arauco y Constitución S.A. | U.S. dollar | Motor vehicles | 1732 | 5705 |
| - | Arauco North America, Inc. | U.S. dollar | Buildings and constructions  | 263 | 6367 |
| - | Arauco North America, Inc. | U.S. dollar | Motor vehicles | 1894 | 776 |
| - | Arauco Canada Limited | Canadian dollar | Motor vehicles | 1020 | 54 |
| - | Celulosa y Energía Punta Pereira S.A. | U.S. dollar | Plants and equipments | 959 | 8613 |
| - | Eufores S.A. | U.S. dollar | Lands | 4269 | 55998 |
| - | Eufores S.A. | U.S. dollar | Plants and equipments | 1223 | 2444 |
| - | Eufores S.A. | U.S. dollar | Buildings and constructions  | 370 | 1139 |
| 96.510.970-6 | Maderas Arauco S.A. | Chilean pesos | Motor vehicles | 15028 | 40034 |
| 96.510.970-6 | Maderas Arauco S.A. | U.F. | Motor vehicles | 5 | 3 |
| 76.879.577-0 | E2E SpA. | Chilean pesos | Lands | 215 | - |
| - | Tecverde S.A. | Brazilian real  | Lands | - | 10 |
| - | Arauco Europe Cooperatief U.A. | Euros | Motor vehicles | 40 | 39 |
| - | Arauco Europe Cooperatief U.A. | Euros | Buildings and constructions  | 78 | 317 |
| - | Araucomex S.A. de C.V. | Mexican pesos | Buildings and constructions  | 543 | 466 |
| - | Araucomex S.A. de C.V. | U.S. dollar | Buildings and constructions  | 150 | 503 |
| - | Arauco Industria de México, S.A. de C.V. | Mexican pesos | Motor vehicles | 85 | 100 |
| - | Arauco Industria de México, S.A. de C.V. | U.S. dollar | Plants and equipments | 661 | 1637 |
| - | Arauco Industria de México, S.A. de C.V. | Mexican pesos | IT equipment | 4 | - |
|  |  |  | Total lease liabilities | 85723 | 1132446 |

---

As part of the policy of Arauco, it considers compliance with all accounts payable, whether with related (see Note 13) or third parties, within a period not exceeding 30 days.

Guarantees

As of the date of these consolidated financial statements, Arauco has financial assets of approximately MU.S.$23 that have been pledged to third parties (beneficiaries), as direct guarantee. If Arauco does not fulfill its obligations, the guarantors could execute the guarantees.

As of December 31, 2025, the total assets pledged as an indirect guarantee were MU.S.$355. In contrast to direct guarantees, indirect guarantees are given to secure obligations assumed by a third party.

Direct and indirect guarantees granted by Arauco:

DIRECT

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Assets |  |  |  |
| Primary obligor | Type of guarantee | pledged | Currency | ThU.S.$ | Beneficiary of the guarantee |
| Celulosa Arauco y Constitución S.A. | Guarantee policy | Cash | U.F. | 352 | Dirección General del Territorio Marítimo y de Marina Mercante |
| Celulosa Arauco y Constitución S.A. | Guarantee letter | Cash | U.F. | 13936 | Sociedad Concesionaria Autopista Costa Arauco S.A. |
| Celulosa Arauco y Constitución S.A. | Guarantee letter | Cash | U.S. dollar | 5135 | Innergy Soluciones Energéticas S.A. |
| Maderas Arauco S.A. | Guarantee policy | Cash | U.F. | 1563 | Universidad de los Andes |
| Maderas Arauco S.A. | Guarantee policy | Cash | U.F. | 405 | Cermaq Chile S.A. |
| Investigaciones Forestales Bioforest SpA. | Guarantee letter | Cash | Chilean pesos | 1765 | Corporación Nacional Forestal |
|  |  | Total |  | 23156 |  |

---

INDIRECT

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Guarantor | Primary obigor | Type of<br> guarantee | Assets<br> pledged | Currency | ThU.S.$ | Beneficiary of the guarantee |
| Celulosa Arauco y Constitución S.A. | Arauco North America. Inc. | Endorsement | Cash | U.S. dollar | 210000 | Banco Itau Corpbanca - NY Branch |
| Arauco do Brasil S.A. | Arauco Celulose do Brasil S.A. | Endorsement | Cash | Brazilian real | 9301 | Banco Safra S.A. |
| Arauco do Brasil S.A. | Arauco Celulose do Brasil S.A. | Endorsement | Cash | Brazilian real | 66367 | Itaú Unibanco S.A. |
| Arauco do Brasil S.A. | Arauco Celulose do Brasil S.A. | Endorsement | Cash | Brazilian real | 31501 | Banco BTG pactual S.A. |
| Arauco Indústria de Painéis S.A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | Arauco do Brasil S.A. | Endorsement | Cash | Brazilian real | 4555 | Banco Safra S.A. |
| Arauco Indústria de Painéis S.A. | Arauco do Brasil S.A. | Endorsement | Cash | Brazilian real | 30257 | Banco Safra S.A. |
| Arauco Indústria de Painéis S.A. | Tecverde S.A. | Endorsement | Cash | Brazilian real | 2726 | Itaú Unibanco S.A. |
|  |  |  | Total |  | 354707 |  |

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**23.10.3** Type of risk: Market risk – exchange rate

Description

Market risk arises from the probability of being affected by losses from fluctuations in currencies exchange rates in which assets and liabilities are denominated, in a functional currency other than the functional currency of Arauco.

Explanation of currency risk exposure and how this risk arises

Arauco is exposed to the foreign currency risk from currency fluctuations arising from sales, purchases and obligations undertaken in foreign currencies, such as the Chilean peso, Euro, Brazilian real or other foreign currencies. In the case of significant exchange rate variations, the Chilean peso is the currency that represents the main currency risk. See Note 11 for details assets and liabilities classified by currency.

Explanation of risk management objectives, policies and processes, and measurement methods

Arauco performs sensitivity analyses to measure the effect of this variable on equity and net result.

Sensitivity analysis considers a variation of +/- 10% of the exchange rate over the Chilean peso. This fluctuation range is considered possible given current market conditions as of the date of these consolidated financial statements. With all other variables at a constant rate, a U.S. dollar exchange rate variation of +/- 10% in relation to the Chilean peso would mean a change in the net income year after tax +/- 9.1% (equivalent to ThU.S.$-/+ 3,725), and +/- 0.03% of equity (equivalent to ThU.S.$-/+ 2,607).

Additionally, a sensitivity analysis is carried out assuming a variation of +/- 10% in the closing exchange rate on the Brazilian real, which is considered a possible range of fluctuation given the market conditions as of the date of these consolidated financial statements. With all the other variables constant, a variation of +/- 10% in the exchange rate of the dollar on the Brazilian real would mean a variation on the net income after tax +/- 104.10% (equivalent to ThU.S.$-/+$42,560) and a change on the equity of +/- 0.9% (equivalent to ThU.S.$-/+$88,918).

23.10.4 Type of risk: Market risk – interest rate risk

Description

Interest rate risk refers to the sensitivity of the value of financial assets and liabilities in terms of interest rate fluctuations.

Explanation of interest rate risk exposure and how this risk arises

Arauco is exposed to risks due to interest rate fluctuations for bonds issued, bank borrowings and financial instruments that bear interest at a variable rate.

Explanation of risk management objectives, policies and processes, and measurement methods

Arauco completes its risk analysis by reviewing its exposure to changes in interest rates. As of December 31, 2025, 6.5% of our financial debt accrues interest at variable rates. A change of +/- 10% in the interest rate is considered a possible range of fluctuation. Such market conditions would affect the income after tax at rate of +/- 3.54% (equivalent to ThU.S.$-/+ 1,450) and +/- 0.01% (equivalent to ThU.S.$-/+ 1,015) on equity. This analysis considers those borrowings with banks at variable rates for which Arauco mitigates the risk by contracting derivative instruments.

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| | | |
|:---|:---|:---|
|  | December 2025<br> ThU.S.$ | Total |
| Fixed rate | 8018132 | 93.5% |
| &nbsp;&nbsp;&nbsp; Bonds issued | 6302554 |  |
| &nbsp;&nbsp;&nbsp; Bank borrowings and others (\*) | 700518 |  |
| &nbsp;&nbsp;&nbsp; Lease liabilities | 1015060 |  |
| Variable rate | 555648 | 6.5% |
| &nbsp;&nbsp;&nbsp; Bonds issued | - |  |
| &nbsp;&nbsp;&nbsp; Bank borrowings | 555648 |  |
| Total  | 8573780 | 100.0% |

---

(\*) Includes variable rate bank borrowings changed by fixed rate swaps.

---

| | | |
|:---|:---|:---|
|  | December 2024<br> ThU.S.$ | Total |
| Fixed rate | 5909430 | 89.6% |
| &nbsp;&nbsp;&nbsp; Bonds issued | 4717676 |  |
| &nbsp;&nbsp;&nbsp; Bank borrowings and others | 463764 |  |
| &nbsp;&nbsp;&nbsp; Lease liabilities | 727990 |  |
| Variable rate | 687259 | 10.4% |
| &nbsp;&nbsp;&nbsp; Bonds issued | - |  |
| &nbsp;&nbsp;&nbsp; Bank borrowings | 687259 |  |
| Total  | 6596689 | 100.0% |

---

23.10.5 Type of risk: Market risk – price of pulp risks

Description

Pulp prices are determined by world and regional market conditions. Prices fluctuate based on demand, production capacity, commercial strategies adopted by large-scale forestry companies, pulp and paper producers and by the availability of substitutes.

Explanation of price risk exposure and how this risk arises

Pulp prices are reflected in revenue from sales and directly affect the net income for the period.

As of December 31, 2025, revenue due to pulp sales accounted for 50.3% of total sales. Pulp prices are fixed on a monthly basis in accordance with the market. Forward contracts or other financial instruments are not used for pulp sales.

Explanation of risk management objectives, policies and processes, and measurement methods

This risk is approached in different ways. Arauco has a team of specialists who perform periodic market and competition analyses, providing tools to analyze and evaluate trends and adjust forecasts. Similarly, Arauco performs price financial sensitivity analysis in order to take the necessary safeguards to confront different scenarios in the best possible manner. Additionally, Arauco mitigates the risk of pulp prices by maintaining a low-cost production strategy, which allows it to better cope with price fluctuations during different economic cycles.

Sensitivity analysis considers a variation of +/- 10% in the average pulp price, a possible fluctuation range given current market conditions at the date of the closing balance. With all other variables constant, a variation of +/- 10% in the average pulp price would mean a variation of +/- 519.8% (equivalent to ThU.S.$-/+ 212,481) on the income for the year 2025 after tax and +/- 1.5% (equivalent to ThU.S.$-/+ 148,737) on equity.

NOTE 24. REPORTABLE SEGMENTS

The main products that generate revenue for each reportable segment are described as follows:

Pulp segment

The main products sold by this reportable segment are long fiber bleached pulp (BSKP), short fiber bleached pulp (BHKP), long fiber raw pulp (UKP), pulp fluff and dissolving pulp (DP). Additionally, it manages a forest plantations in order to supply its production plants and, at the same time, to sell to the wood products segment or to third parties what it does not use (pruning, sawing, poles and chips). Finally, depending on its needs, it buys logs and chips from third parties which are consumed or sold to the wood products segment.

The Pulp reportable segment uses wood exclusively from pine and eucalyptus plantations for the production of different classes of wood cellulose or pulp. Bleached pulp is mainly used as raw material for producing printing and writing paper, as well as toilet paper and high-quality wrapping paper. Unbleached pulp is used to produce packing paper, filters, fiber cement products, dielectric paper and others. Fluff pulp is mainly used in the production of diapers and female hygiene products. On the other hand, dissolving pulp is used as raw material for the manufacture of different fabrics.

Arauco has six plants: four in Chile, one in Argentina and one in Uruguay (50% property of Arauco), and they have a total production capacity of approximately 5.1 million tons per year. Pulp is sold in more than 45 countries, mainly in Asia and Europe.

Wood products segment

The main products sold by this segment correspond to plywood, MDF (Medium Density Fiberboard), PB (chipboard), sawn wood of different dimensions and remanufactured products such as moldings, pre-cut pieces, finger joints, among others.

The Panels area produces a wide range of panel products and several kinds of moldings aimed at the furniture, decoration and construction industries, It consists of 20 industrial plants: 4 in Chile, 2 in Argentina, 4 in Brazil, 2 in Mexico, and 8 plants in the U.S. and Canada, The Company has a total annual production capacity of 7.1 million cubic meters of PBO, MDF, plywood and moldings.

Through the joint venture Sonae Arauco, Arauco produces and sells wood panels, of the type of MDF, PB and OSB, and sawn timber, through the operation of 2 panel plants and 1 sawmill in Spain; 2 panel plants and 1 resin plant in Portugal; 3 panel plants in Germany and 2 panel plants in South Africa. In total, Sonae Arauco's production capacity is approximately 1.2 million m3 of MDF, 2.4 million m3 of PB, 460,000 m3 of OSB and 70,000 m3 of sawn timber.

Including Sonae Arauco at 50%, Arauco in its mills totalize a capacity of 4.1 million m3 of MDF, 4.1 million m3 of PB and 230,000 m3 of OSB, 700,000 m3 of Plywood and 2,400,000 m3 of sawn timber.

The Sawn Timber area produces a wide range of wood and remanufactured products with different kinds of uses and appearances, which include a wide variety of uses in furniture, packing, construction and refurbishing industries.

With 6 sawmills in operation (5 in Chile and 1 in Argentina), the Company has a production capacity of 2.4 million m3 of sawn wood.

Furthermore, the Company has 5 remanufacturing plants: 4 in Chile and 1 in Argentina, These mills reprocess sawn wood and produce high quality remanufactured products, such as finger joint and solid moldings as well as precut pieces.

Arauco has no customers representing 10% or more of its revenues.

Below is summarized information concerning the assets, liabilities and profits and losses at the end of each period, by segments. The profit (loss) of each segment informed takes into consideration that taxes and income and financial costs have not been allocated to the various segments, and are shown as part of the Corporate's segment:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood <br> products | Subtotal<br> Segments | Others | Corporate | Elimination | Total |
| **For the year ended December 31, 2025** | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenues from sales of goods | 2935043 | 3009154 | 5944197 | - | - |  | 5944197 |
| Revenues from rendering of services | 125027 | 14167 | 139194 | 751 | - |  | 139945 |
| Revenues from ordinary activities | 3060070 | 3023321 | 6083391 | 751 | -  |  | 6084142 |
| Revenues from transactions with reportable segments | 453592 | 20376 | 473968 | 57581 | - | (531549) | - |
| Finance income | - | - | - | - | 62560 |  | 62560 |
| Finance costs | - | - | - | - | (409724) |  | (409724) |
| Net finance costs | - | - | - | - | (347164) |  | (347164) |
| Depreciation and amortizations | 487093 | 191947 | 679040 | 3514 | 5494 |  | 688048 |
| Other income | 278512 | 35994 | 314506 | 429 | 9088 |  | 324023 |
| Other expenses | 53075 | 58719 | 111794 | 6 | 18480 |  | 130280 |
| Share of profit (loss) of associates and joint ventures accounted for using equity method |  |  |  |  |  |  |  |
| Associates | (4787) | - | (4787) | - | 4542 |  | (245) |
| Joint ventures | - | (7341) | (7341) | - | 3721 |  | (3620) |
| Income tax expense | - | - | - | - | (39804) |  | (39804) |
| Profit (loss) of each reportable segment | 297805 | 289345 | 587150 | (1529) | (544742) |  | 40879 |
| Geographical information on revenues |  |  |  |  |  |  |  |
| Revenue – Chilean entities | 2351033 | 1081934 | 3432967 | 751 | - |  | 3433718 |
| Revenue – Foreign entities | 709037 | 1941387 | 2650424 | - | - |  | 2650424 |
| Total revenues from ordinary activities | 3060070 | 3023321 | 6083391 | 751 | - |  | 6084142 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood <br> products | Subtotal<br> Segments | Others | Corporate | Elimination | Total |
| **For the year ended December 31, 2025** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Amounts of additions to non-monetary assets |  |  |  |  |  |  |  |
| Acquisition of property, plant and equipment and biological assets | 2160311 | 280013 | 2440324 | 1776 | 2571 |  | 2444671 |
| Acquisition in subsidiaries, joint operations and contribution of investments in associates and joint venture | - | - | - | - | 44670 |  | 44670 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood <br> products | Subtotal<br> Segments | Others | Corporate | Elimination | Total |
| As of December 31, 2025 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Segment assets | 15941649 | 3208196 | 19149845 | 15167 | 2156937 | (17186) | 21304763 |
| Segment assets (excluding deferred tax assets) | 15941649 | 3208196 | 19149845 | 15167 | 2055433 | (17186) | 21203259 |
| Deferred tax assets |  |  |  |  | 101504 |  | 101504 |
| Investments accounted through equity method |  |  |  |  |  |  |  |
| Associates | 73998 | - | 73998 | - | 44126 |  | 118124 |
| Joint Ventures | - | 232236 | 232236 | - | 133182 |  | 365418 |
| Segment liabilities | 1879724 | 397459 | 2277183 | 36709 | 9307393 |  | 11621285 |
| Segment liabilities (excluding deferred tax liabilities) | 1879724 | 397459 | 2277183 | 36709 | 7757336 |  | 10071228 |
| Deferred tax liabilities |  |  |  |  | 1550057 |  | 1550057 |
| Geographical information on non-current assets |  |  |  |  |  |  |  |
| Chile | 8093366 | 488925 | 8582291 | 12665 | 670662 | (4523) | 9261095 |
| Foreign countries | 6010308 | 1432786 | 7443094 | - | 206843 |  | 7649937 |
| Total non-current assets | 14103674 | 1921711 | 16025385 | 12665 | 877505 | (4523) | 16911032 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood<br> products | Subtotal<br> Segments | Others | Corporate | Elimination | Total |
| **For the year ended December 31, 2024** | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenues from sales of goods | 3299128 | 3115981 | 6415109 | - | - |  | 6415109 |
| Revenues from rendering of services | 130137 | - | 130137 | 900 | - |  | 131037 |
| Revenues from ordinary activities | 3429265 | 3115981 | 6545246 | 900 | - |  | 6546146 |
| Revenues from transactions with reportable segments | 486399 | 15388 | 501787 | 62721 | - | (564508) | - |
| Finance income | - | - | - | - | 66355 |  | 66355 |
| Finance costs | - | - | - | - | (397923) |  | (397923) |
| Net finance costs | - | - | - | - | (331568) |  | (331568) |
| Depreciation and amortizations | 484953 | 190767 | 675720 | 2423 | 7808 |  | 685951 |
| Other income | 193369 | 26784 | 220153 | 377 | 376531 |  | 597061 |
| Other expenses | 99503 | 76765 | 176268 | 1 | 35944 |  | 212213 |
| Share of profit (loss) of associates and joint ventures accounted for using equity method |  |  |  |  |  |  |  |
| Associates | 6018 | - | 6018 | - | (28668) |  | (22650) |
| Joint ventures | - | (24017) | (24017) | - | 875 |  | (23142) |
| Income tax expense | - | - | - | - | (170400) |  | (170400) |
| Profit (loss) of each reportable segment | 482213 | 296667 | 778880 | (460) | (302139) |  | 476281 |
| Geographical information on revenues |  |  |  |  |  |  |  |
| Revenue – Chilean entities | 2601740 | 1133260 | 3735000 | 900 | - |  | 3735900 |
| Revenue – Foreign entities | 827525 | 1982721 | 2810246 | - | - |  | 2810246 |
| Total revenues from ordinary activities | 3429265 | 3115981 | 6545246 | 900 | - |  | 6546146 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood <br> products | Subtotal<br> Segments | Others | Corporate | Elimination | Total |
| **For the year ended December 31, 2024** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Amounts of additions to non-monetary assets |  |  |  |  |  |  |  |
| Acquisition of property, plant and equipment and biological assets | 977878 | 233144 | 1211022 | 1275 | 16596 |  | 1228893 |
| Acquisition in subsidiaries, joint operations and contribution of investments in associates and joint venture | - | - | - | - | 111969 |  | 111969 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood<br> products | Subtotal<br> Segments | Others | Corporate | Elimination | Total |
| As of December 31, 2024 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Segment assets | 13715757 | 2964938 | 16680695 | 55208 | 1483836 | (60427) | 18159312 |
| Segment assets (excluding deferred tax assets) | 13715757 | 2964938 | 16680695 | 55208 | 1410427 | (60427) | 18085903 |
| Deferred tax assets |  |  |  |  | 73409 |  | 73409 |
| Investments accounted through equity method |  |  |  |  |  |  |  |
| Associates | 41352 | - | 41352 | - | 35430 |  | 76782 |
| Joint Ventures | - | 211345 | 211345 | - | 118484 |  | 329829 |
| Segment liabilities | 1323157 | 417149 | 1740306 | 34968 | 7660323 |  | 9435597 |
| Segment liabilities (excluding deferred tax liabilities) | 1323157 | 417149 | 1740306 | 34968 | 6190811 |  | 7966085 |
| Deferred tax liabilities |  |  |  |  | 1469512 |  | 1469512 |
| Geographical information on non-current assets |  |  |  |  |  |  |  |
| Chile | 8322403 | 485877 | 8808280 | 53658 | 364906 | (7016) | 9219828 |
| Foreign countries | 3301679 | 1226377 | 4528056 | - | 136810 |  | 4664866 |
| Total non-current assets | 11624082 | 1712254 | 13336336 | 53658 | 501716 | (7016) | 13884694 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood<br> products | Subtotal<br>Segments | Others | Corporate | Elimination | Total |
| **For the year ended December 31, 2023** | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenues from sales of goods | 2687390 | 3181951 | 5869341 | - | - |  | 5869341 |
| Revenues from rendering of services | 113520 | 28335 | 141855 | 623 | - |  | 142478 |
| Revenues from ordinary activities | 2800910 | 3210286 | 6011196 | 623 | - |  | 6011819 |
| Revenues from transactions with reportable segments | 475535 | 23040 | 498575 | 49914 | - | (548489) | - |
| Finance income | - | - | - | - | 131666 |  | 131666 |
| Finance costs | - | - | - | - | (373496) |  | (373496) |
| Net finance costs | - | - | - | - | (241830) |  | (241830) |
| Depreciation and amortizations | 464721 | 186340 | 651061 | 1660 | 8347 |  | 661068 |
| Other income | 498021 | 54688 | 552709 | 334 | 19974 |  | 573017 |
| Other expenses | 399094 | 54980 | 454074 | 684 | 25578 |  | 480336 |
| Share of profit (loss) of associates and joint ventures accounted for using equity method |  |  |  |  |  |  |  |
| Associates | 3084 | - | 3084 | - | 906 |  | 3990 |
| Joint ventures | - | 2794 | 2794 | - | 925 |  | 3719 |
| Income tax expense | - | - | - | - | 27293 |  | 27293 |
| Profit (loss) of each reportable segment | (182369) | 371015 | 188646 | (5517) | (541656) |  | (358527) |
| Geographical information on revenues |  |  |  |  |  |  |  |
| Revenue – Chilean entities | 1929554 | 1145647 | 3075201 | 623 | - |  | 3075824 |
| Revenue – Foreign entities | 871356 | 2064639 | 2935995 | - | - |  | 2935995 |
| Total revenues from ordinary activities | 2800910 | 3210286 | 6011196 | 623 | - |  | 6011819 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood <br> products | Subtotal<br>Segments | Others | Corporate | Elimination | Total |
| **For the year ended December 31, 2023** | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Amounts of additions to non-monetary assets |  |  |  |  |  |  |  |
| Acquisition of property, plant and equipment and biological assets | 1109609 | 137867 | <br>1247476 | 251 | 15322 |  | 1263049 |
| Acquisition and contribution of investments in associates and joint venture | - | - | - | - | 34950 |  | 34950 <br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood <br> products | Subtotal<br>Segments | Others | Corporate | Elimination | Total |
| As of December 31, 2023 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Segment assets | 13864686 | 2967646 | 16832332 | 16480 | 1135689 | (74137) | 17910364 |
| Segment assets (excluding deferred tax assets) | 13864686 | 2967646 | <br>16832332 | 16480 | 1047122 | (74137) | 17821797 |
| Deferred tax assets |  |  |  |  | 88567 |  | 88567 |
| Investments accounted through equity method |  |  |  |  |  |  |  |
| Associates | 34558 | - | 34558 | - | 65248 |  | 99806 |
| Joint Ventures | - | 215322 | 215322 | - | 108483 |  | 323805 |
| Segment liabilities | 1170684 | 392104 | 1562788 | 47487 | 8291060 |  | 9901335 |
| Segment liabilities (excluding deferred tax liabilities) | 1170684 | 392104 | <br>1562788 | 47487 | 6747436 |  | 8357711 |
| Deferred tax liabilities |  |  |  |  | 1543624 |  | 1543624 |
| Geographical information on non-current assets |  |  |  |  |  |  |  |
| Chile | 8565525 | 463179 | 9028704 | 15481 | 504903 | (6668) | 9542420 |
| Foreign countries | 2888631 | 1245369 | 4134000 | - | 58366 |  | 4192366 |
| Total non-current assets | 11454156 | 1708548 | 13162704 | 15481 | 563269 | (6668) | 13734786 |

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The following table shows information related to cash flows by segments which is presented as complementary information as required by our regulatory entities:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood<br> products | Subtotal<br>Segments | Others | Corporate | Total |
| **For the year ended December 31, 2025** <br>| ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Segment cash flows |  |  |  |  |  |  |
| Cash flows from (used in) operating activities | 1044619 | 392768 | 1437387 | 4786 | (395359) | 1046814 |
| Cash flows from (used in) investing activities  | (2137423) | (200308) | (2337731) | 6108 | (99402) | (2431025) |
| Cash flows from (used in) financing activities | 793020 | 335904 | 1128924 | (1839) | 429368 | 1556453 |
| Net increase (decrease) in cash and cash equivalents | (299784) | 528364 | 228580 | 9055 | (65393) | 172242 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood<br> products | Subtotal<br>Segments | Others | Corporate | Total |
| For the year ended December 31, 2024 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Segment cash flows |  |  |  |  |  |  |
| Cash flows from (used in) operating activities | 1219029 | 333590 | 1552619 | 44 | (371346) | 1181317 |
| Cash flows from (used in) investing activities  | (922213) | (105488) | (1027701) | (6611) | 705339 | (328973) |
| Cash flows from (used in) financing activities | (810599) | 624183 | (186416) | 1522 | (121054) | (305948) |
| Net increase (decrease) in cash and cash equivalents | (513783) | 852285 | 338502 | (5045) | 212939 | 546396 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pulp | Wood<br> products | Subtotal<br>Segments | Others | Corporate | Total |
| For the year ended December 31, 2023 | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Segment cash flows |  |  |  |  |  |  |
| Cash flows from (used in) operating activities | 411929 | 555082 | 967011 | (4106) | (222478) | 740427 |
| Cash flows from (used in) investing activities  | (1096743) | (117321) | (1214064) | (1796) | (117264) | (1333124) |
| Cash flows from (used in) financing activities | 713838 | (40064) | 673774 | (6483) | (21624) | 645667 |
| Net increase (decrease) in cash and cash equivalents | 29024 | 397697 | 426721 | (12385) | (361366) | 52970 |

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Information required by geographic area:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area |
| 2025 | Local<br> country | Foreign country | Foreign country | Foreign country | Foreign country | Foreign country | Foreign country |
|  | Chile | Argentina | Brazil | **USA/Canada** | Uruguay | Mexico | Total |
| Disclosure of geographical areas | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenues from sale of goods | 3328094 | 526648 | 515004 | 973257 | 420617 | 180577 | 5944197 |
| Revenues from rendering of services | 105624 | - | - | - | 34321 | - | 139945 |
| Revenues for the year ended December 31, 2025 | 3433718 | 526648 | 515004 | 973257 | 454938 | 180577 | 6084142 |
| Non-current Assets at 12-31-2025 other than deferred tax | 9247531 | 692438 | 4029604 | 639416 | 1797681 | 402858 | 16809528 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area |
| 2024 | Local<br> country | Foreign country | Foreign country | Foreign country | Foreign country | Foreign country | Foreign country |
|  | Chile | Argentina | Brazil | **USA/Canada** | Uruguay | Mexico | Total |
| Disclosure of geographical areas | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenues from sale of goods | 3644478 | 486079 | 591342 | 1047672 | 459464 | 186074 | 6415109 |
| Revenues from rendering of services | 91422 | - | - | - | 39615 | - | 131037 |
| Revenues for the year ended December 31, 2024 | 3735900 | 486079 | 591342 | 1047672 | 499079 | 186074 | 6546146 |
| Non-current Assets at 12-31-2024 other than deferred tax | 9195687 | 672411 | 1286657 | 662729 | 1763397 | 230404 | 13811285 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area | Geographical area |
| 2023 | Local<br> country | Foreign country | Foreign country | Foreign country | Foreign country | Foreign country | Foreign country |
|  | Chile | Argentina | Brazil | USA/Canada | Uruguay | Mexico | Total |
| Disclosure of geographical areas | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Revenues from sale of goods | 2998896 | 570933 | 586512 | 1057027 | 449316 | 206657 | 5869341 |
| Revenues from rendering of services | 76928 | - | 28332 | - | 37215 | 3 | 142478 |
| Revenues for the year ended December 31, 2023 | 3075824 | 570933 | 614844 | 1057027 | 486531 | 206660 | 6011819 |
| Non-current Assets at 12-31-2023 other than deferred tax | 9466748 | 612467 | 1035237 | 687247 | 1681160 | 163360 | 13646219 |

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NOTE 25. OTHER NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES

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| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Current non-financial assets | ThU.S.$ | ThU.S.$ |
| Roads to amortize, current | 45730 | 64020 |
| Prepayment to amortize (insurance and others) | 33025 | 36800 |
| Recoverable taxes (related to purchases) | 129761 | 146774 |
| Other current non-financial assets | 4300 | 13498 |
| Total  | 212816 | **261092**  |

---

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Non-current non-financial assets | ThU.S.$ | ThU.S.$ |
| Roads to amortize, non-current | 95450 | 56499 |
| Guarantee values | 19431 | 2676 |
| Recoverable taxes  | 61041 | 6486 |
| Non-current contractual rights | 443114 | - |
| Other non-current non-financial assets | 36818 | 19375 |
| Total  | 655854 | **85036**  |

---

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Current non-financial liabilities | ThU.S.$ | ThU.S.$ |
| Provision of minimum dividend (1) | 10496 | 114359 |
| ICMS, PIS-COFINS and other tax payables - Brazil | 30553 | 21925 |
| Other tax payable | 25267 | 23093 |
| Other Current non-financial liabilities | 7327 | 6212 |
| Total  | 73643 | **165589**  |

---

(1) This mainly corresponds to the parent company's minimum dividend provision (see Note 26).

---

| | | |
|:---|:---|:---|
|  | 12-31-2025 | 12-31-2024 |
| Non-current non-financial liabilities | ThU.S.$ | ThU.S.$ |
| ICMS and other tax payable - Brazil | 29507 | 35630 |
| Other non-current non-financial liabilities | 781 | 1382 |
| Total  | 30288 | **37012**  |

---

Arauco enters into agreements with independent producers for the establishment and management of forest plantations intended to supply timber. Pursuant to these agreements, Arauco provides cash advances, land and seedlings, which are settled through the delivery of a proportion of the plantations at the end of each growth cycle.

These agreements do not provide the Company with joint control over the relevant activities of the forest plantations. The Company does not control the biological transformation process, does not have legal title to the standing trees during the growth cycle, and does not bear the significant biological risks associated with the plantations. Accordingly, the Company does not recognize biological assets.

Furthermore, Arauco enters into right-of-first-refusal arrangements to acquire a portion of the plantations or timber at market value. Such arrangements qualify as own-use contracts under IFRS 9 and, accordingly, do not give rise to a financial liability nor contain an embedded derivative

As of December 31, 2025, the balances related to these agreements are included under "Non-current contractual rights", and the main balance is related to cash advances to timber supplier. That cash advances are classified within the statements in cash flow as investment activities under "Purchase of other long-term assets".

NOTE 26. DISTRIBUTABLE NET Profit AND EARNINGS PER SHARE

Distributable net profit

As a general policy, the Board of Directors of Arauco agreed that the net profit to be distributed as dividend is determined based on realized net gains/(losses) of any relevant variations in the value of unrealized assets and liabilities, which are excluded from the calculation of net profit during the period such changes are made.

As a result of the foregoing, for purposes of determining the distributable net profit of the Company, which is the same considered for calculating the minimum dividend required and additional dividend, the following unrealized gains/losses are excluded from the net profit for the year:

1) Unrealized gains/losses relating to the fair value recorded for forestry assets under IAS 41, adding them back to distributable net profit when they are realized through sale or disposed of by other means.

2) Those generated through the acquisition of entities. These results will be added back to net profit when they are realized. For these purposes, earnings shall be considered realized insofar as the acquired entities generate profits after their acquisition, or upon their disposal.

The deferred taxes associated with the amounts described in 1) and 2) above are also excluded.

In 2023, the amount of ThU.S.$92,719 presented in the consolidated statement of changes in equity was approved and distributed, corresponding to an additional and extraordinary dividend of 10% to be paid for the profits of the parent company of 2022.

At the board meeting held on September 24, 2024, it was agreed to modify the dividend policy, establishing that, charged to the profits obtained in the years 2024, 2025 and 2026, an amount equivalent to 30% of the net profits of each year, eligible to be distributed as dividends, will be distributed annually. For subsequent years, an amount equivalent to 40% of the distributable net profit of each year would be distributed. Nevertheless, the Board of Directors may decide to distribute and pay dividends to the shareholders, to the extent that it expects the year to finalize with positive results and that the Company's liquidity allows such distribution and payment.

At the board meeting held on October 24, 2025, an amendment to the dividend policy was approved, establishing that if the Company exercises its option to defer the payment of interest on the Series "AG" Bonds, issued and placed in the local market on the same date, the Company may not declare or pay dividends while any deferred interest remains outstanding.

Based on the dividend policy described above, as of December 31, 2025, a minimum dividend provision for year 2025 of ThU.S.$8,449 was recognized in Arauco's consolidated financial statements, representing 30% of the distributable net profit for year 2025 (ThU.S.$206,684 as of December 31, 2024).

On December 10, 2024, Arauco paid ThU.S.$94,397 as an interim dividend on account of the total minimum dividend provision. As of December 31, 2024, the parent company's minimum dividend provision balance of ThU.S.$112,287 was recorded in Arauco's consolidated financial statements.

The following table details the adjustments made for the determination of distributable net profit as of December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | Distributable net profit | Distributable net profit | Distributable net profit |
|  | 12-31-2025<br>ThU.S.$ | 12-31-2024<br>ThU.S.$ | 12-31-2023<br>ThU.S.$ |
| Net profit (loss) attributable to parent company | **41300**  | **476470**  | **(358560)**  |
| Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;Biological assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) | (204646) | (159020) | (264477) |
| &nbsp;&nbsp;&nbsp;Realized gains (losses) | 187641 | 473795 | 394179 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 3868 | (102298) | (37394) |
| &nbsp;&nbsp;&nbsp;Biological assets (net) | **(13137)**  | **212477**  | 92308 |
| Distributable net profit (loss) | **28163**  | **688947**  | (266252) |
| 30% in 2025 and 2024 (40% in 2023) | 8449 | 206684 | - |

---

Basic and diluted earnings per share

Basic and diluted earnings per share are calculated by dividing the profit or loss attributable to ordinary equity holders of parent by the weighted average number of ordinary shares outstanding. Arauco does not have any shares with potential dilutive effect.

---

| | | | |
|:---|:---|:---|:---|
|  | January-December | January-December | January-December |
|  | 2025 | 2024 | 2023 |
|  | ThU.S.$ | ThU.S.$ | ThU.S.$ |
| Profit or loss attributable to ordinary equity holder of parent | 41300 | 476470 | (358560) |
| Weighted average of number of shares | 125323699 | 121422850 | 120474350 |
| Basic and diluted earnings (loss) per share (in U.S.$ per share) | 0.3295466 | 3.9240555 | (2.9762352) |

---

NOTE 27. SUBSEQUENT EVENTS

The authorization for the issuance and publication of these consolidated financial statements for the year ended December 31, 2025, was approved by the Board of Directors of Arauco at Meeting No 754 held on March 18, 2026.

Subsequent to December 31, 2025, and as of the date of issuance of these consolidated financial statements, there have been no additional events, that could materially affect the presentation of these consolidated financial statements.

## Exhibit 1.1

Exhibit 1.1

**BY-LAWS**

**<u>CELULOSA ARAUCO Y CONSTITUCION S. A.</u>**

TITLE I

**Name, domicile, duration and purpose.**

ARTICLE 1. A stock corporation called "Celulosa Arauco y Constitución S.A." is established, which will be ruled by these by-laws and by the legal and regulatory provisions that may be applicable thereto.

ARTICLE 2. The domicile of the company will be the city of Santiago, Metropolitan Region, without prejudice to the offices, agencies or branches that may be established in other parts of the country or abroad.

ARTICLE 3. The duration of the company is indefinite and its dissolution will occur in the events provided for in the laws.

ARTICLE 4. The purpose of the company is:

a) To manufacture cellulose, paper and derivates, by-products, derivatives and similar products; acquire, administer, manage and exploit, for its own or third parties' account, forest lands or lands that may be appropriate for forestry; acquire and exploit sawmills and other industries that process raw materials for the production of paper, cellulose and their derivatives and/or lumber in all its forms; dispose of, export and in general, market in or outside the country, the products referred to, especially lumber, cellulose and paper in all their forms.

b) Acquire, administer, manage and exploit for its own or third parties' account, agricultural real estate, and transform, industrialize and market agricultural products, as well as produce, process and market food and beverages of any class or origin.

c) Acquire, administer, manage and exploit for its own or third parties' account, non-agricultural real estate, as well as to become involved in the construction industry and develop realty business.

d) Import, export, buy, sell, distribute and, in general market for its own or third parties' account, motorized vehicles and machinery, elements, equipment and other articles for agricultural, mining, fishing, industrial, electronic computers for commercial and domestic use, their accessories and spare parts.

e) Land, air, maritime and river transportation, for its own or third parties' account, and promotion and development of tourist activities in the country.

f) Manufacture, distribute and market in general, containers of all kinds.

g) Exploit electronic computer equipment, in all its forms, being able to provide in this connection advice in administration and organization of enterprises, market and feasibility studies and operative research.

h) Also carry out activities and business related with:

1) Mining, including among others, the prospection, reconnaissance, exploration and exploitation of orebodies; and

2) Fishing or catching of beings or species that normally live in the water, being able to market them in any way.

i) Participate, according to the law, in banking enterprises, financial services, insurance, warrants and in general storage and deposit of goods, and in the administration of mutual and security funds.

j) The performance for its own or third parties' account of port operations, including within them, especially, pier work, lighterage, moving of cargo, storage, stowing goods in vessels and removing them from stowage.

k) The production, purchase, sale, transportation and distribution of electrical energy and water steam.

l) The generation, purchase, sale and commercialization in general of Certified Emission Reductions of greenhouse gases, called "Carbon Bonds".

m) The rendering of all type of services to third parties, including services of administration of companies; services related to computing matters; services of administration and maintenance of all kind of equipment and industrial machinery; services of treatment, transportation, transformation and disposal of effluents, waste products and discharges, whether they are industrial or of any other type; and the rendering of all kind of services related to engineering.

n) The lease, as landlord, of real property, with or without movable property included therein, and of equipment, machinery and other movable properties.

TITLE II

**Capital and shares** 

ARTICLE 5: The capital of the Company is the amount of US$2,003,611,156.81, divided into 138,745,350 shares of an only and unique series, all without nominal value.

ARTICLE 6: The shares will be registered. A register will be kept with a list of all the shareholders indicating their address and the number of shares each one holds. Any transmission or transfer of shares must be noted in such register.

TITLE III.

**Administration** 

ARTICLE 7: The administration of the company corresponds to a board of directors formed by nine members elected by the General Shareholders' Meeting.

ARTICLE 8: The board of the company represents it judicially and extrajudicially and for the fulfillment of the corporate object, which it will not be necessary to evidence before third parties, it is invested with all the authorities of administration and disposal that the law or the by-laws do not establish as privative of the general shareholders' meeting, without it being necessary to give it a special power of attorney, even in the case of those acts or contracts with respect to which the laws require this circumstance. In judicial matters, the board of directors will have all the authorities mentioned in article 7 of the Code of Civil Procedure, especially those of the second paragraph, which are considered expressly reproduced herein one by one. The above is without prejudice to the judicial representation that corresponds to the manager according to the law. In extrajudicial matters, the board of directors may especially collect and receive whatever is owed to the company; in any way acquire and dispose of tangible or intangible real or personal property, encumber the company's assets, real and personal property, with mortgages, easements or pledges, regardless of the value of such property or the amount of the respective encumbrances; give and take on lease or commodatum; perform all kinds of exchange operations, borrow money paying interest, with or without guaranty, in the form of mutuum, overdraft, discounts, advance against acceptance or any other; contract overdrafts and current accounts of deposit or credit; and draw and overdraw on such accounts; draw, accept, endorse, cancel, aval and protest bills of exchange or other mercantile or banking documents; agree to solidarity and indivisibility; form companies and join those that have already been formed, and concur to the administration, modification, dissolution of such companies, and in general perform all the acts and enter into all the nominate or innominate contracts, being able to stipulate the elements of their essence, natural or merely accidental, regardless of whether or not they are included in the listing which is merely an example and that does not restrict the authorities of administration and disposal that the law gives to the Board of Directors.

ARTICLE 9: The following are also authorities and duties of the board of directors:

a) Name and remove the general manager of the company;

b) Supervise the behavior of the general manager and the rest of the employees, suspend them, dismiss them and establish their duties and remunerations;

c) Establish agencies or branches in any trade market in or outside the country and suspend them or eliminate them when it is considered advisable;

d) Submit to the regular shareholders' meeting a balance sheet, inventory and the annual report regarding the corporate results of each year and propose to the general shareholders' meeting the distribution of the profits and the dividends to be distributed among the shareholders, without prejudice that per se and under the personal liability of the directors who concur to the resolution, it may resolve to distribute interim dividends according to the law; e) Issue at the proposal of the general manager the internal regulations that are necessary for the good operation of the company.

f) Inspect the corporate operations and see that all the contracts that are entered into are accurately fulfilled.

g) Take resolutions on calls to regular and special general shareholders' meetings.

h) All the rest that are conferred on it by the laws and other provisions of the by-laws, and in general, resolve the cases not provided for in them.

ARTICLE 10: The Directors, who will be re-eligible, will remain three years in office and the board of directors will be fully renewed in such periods. If for any reason the general shareholders' meeting called to elect the directors is not held, their functions will be understood to be extended until their substitute is named. In the elections made in the general shareholders' meetings, the latter or whoever may represent them, may accumulate their votes in favor of one person, or distribute them as they deem advisable and those who in the same and only voting receive the highest number of votes will be elected until the number of offices to be elected is completed. The voting can be omitted if the election is proposed by acclamation and none of the shareholders present or represented opposes the motion.

ARTICLE 11: The minutes recording the election of the board of directors will contain the names of all the shareholders present or represented, specifying the number of shares for which each one has voted, per se, or by proxy, and expressing the general results of the voting.

ARTICLE 12: The directors will receive fees for their functions. The amount of the fees shall be fixed by the general shareholders' meeting and will be compatible with other remunerations that they receive for functions or assignments other than the office of director.

ARTICLE 13: The board of directors may only be revoked fully by the regular or special general shareholders' meeting, but one or more of its members cannot be individually or collectively be revoked. In any case, any change in the board of directors must be revealed as required by the laws.

ARTICLE 14: At the first meeting held after the general meeting that has appointed it, the Board will elect from among its midst a Chairman, a First Vicechairman and a Second Vicechairman, who will also be the Chairman, First Vicechairman and Second Vicechairman of the company and of the general shareholders' meetings.

ARTICLE 15. The functions of director cannot be delegated and will be collectively exercised in a meeting legally called to order. The Board of Directors may delegate part of its authorities on the chairman, on one of the vicechairmen, on a director or on a committee of directors, on the managers, assistant managers or lawyers of the company, and for especially determined purposes, on other persons.

ARTICLE 16: The meetings of the board will be regular and special. The former will be held on the dates pre-determined by the board itself, and the latter, when called by the chairman, per se or upon indication of two or more directors, for specific purposes that will be mentioned in the notice. The call will be made by letter sent by the general manager, acting upon the chairman's instructions, to the address registered by each director in the company.

ARTICLE 17: The meetings of the board of directors will be called to order with the attendance of five directors and resolutions will be taken by the absolute majority of the directors present. In case of a tie, the person chairing the meeting will have the casting vote.

ARTICLE 18: The Board of Directors will appoint a secretary, and the general manager will act as such in the absence of a specific appointment. The deliberations and resolutions of the board will be written into a book of minutes by any means that may be determined by the meeting provided they offer the assurance that there shall be no insertions, eliminations or any other adulteration that could affect the accuracy of the minutes, that will be signed by the directors who concurred to the meeting. If any of them should die, be absent, or does not sign when required by the secretary, or for any reason should be unable to sign the pertinent minutes, record will be left therein of the respective circumstance or impediment. The minutes will be understood to be approved from the time they are signed according to the preceding sentence, by the Directors who have concurred with their vote to the approval of the respective resolution, and since that date the resolutions referred to therein can be carried out. The minutes shall also be understood to be approved and the resolutions evidenced therein can be carried out, when approved by the board of directors at a subsequent meeting.

The director who wishes to exempt responsibility for any act or resolution of the board of directors, must have his opposition recorded in the minutes, and an account must be given thereof at the next regular shareholders' meeting by the person chairing such meeting.

The Director who considers that the minutes of a certain meeting contain inaccuracies or omissions, has the right to record the corresponding exceptions before signing them.

ARTICLE 19: The company may only enter into acts or contracts in which one or more directors are interested per se or as representatives of other persons, when such operations are known and approved by the board of Directors and adjust to conditions of equity that are similar to those that customarily prevail in the market. The resolutions taken in this connection by the Board of directors shall be made known at the next general shareholders' meeting by the person chairing the meeting, and mention must be made of this matter in the notice of call.

ARTICLE 20: The following are among the Chairman's special duties:

a) Chair the meetings of the board of directors and the general shareholders' meetings;

b) Call the directors to board meetings when this has been provided for or when he may consider it necessary or upon the request of two or more directors.

c) Call general shareholders' meetings when a resolution has been taken in this connection by the Board or if it is requested by a competent number of shareholders;

d) Fulfill and cause to be fulfilled what is provided in the by-laws and the resolutions of the Board of Directors and of the general shareholders' meeting.

In the absence of the Chairman, he will be replaced, in the first place, by the First Vicechairman, and in the absence of both, the Second Vicechairman will replace the Chairman.

ARTICLE 21. There will be a general manager and the managers and assistant managers that the former may consider it convenient to appoint. The general manager will have the judicial representation of the company according to the law and will be entitled to speak at the board meetings, being liable jointly with the members of such board for all the resolutions that are damaging for the company and the shareholders, unless his opinion to the contrary is recorded in the minutes. The following will especially be the duties of the general manager:

a) Study any business that may be convenient for the company, manage and perform it under the instructions of the board of directors;

b) Carry out all the resolutions of the board of directors within the administrative authorities that correspond to him;

c) Direct the progress of all the activities of the company and see that its rights are enforced in business carried out with third parties in which it participates.

d) Take the representation of the company in all extrajudicial acts and contracts for which he has received powers of attorney from the Board of Directors.

e) Appoint the senior officers and, at their proposal, the rest of the subaltern employees;

f) Dismiss the senior officers referred to in letter (e) of this article and the lower level employees with or without indication of the respective chief.

g) Supervise the behavior of all the employees of the company, inspect all the businesses in and outside the corporate domicile; correct the defects noted in their operation and propose to the board the most important actions required in the case;

h) If no other person has been appointed therefor, serve as secretary of the board of directors and of the general shareholders' meetings and keep the corresponding books of minutes of the meetings.

i) Keep the book of shareholders and be careful in order that the issue and transfer of the shares will be made properly;

j) See to the correspondence of the company;

k) Take under his immediate supervision everything referring to the company's accounting;

1) In general comply, and cause the instructions received from the Board of Directors to be complied with.

ARTICLE 22. The directors will be subject to the inabilities, incompatibilities, obligations, prohibitions and responsibilities indicated in the laws.

ARTICLE 23: The appointments, vacancies and substitutions that occur with respect to the office of chairman/president and general manager, shall be revealed as provided for in the laws and regulations.

TITLE IV.

**General shareholders' meetings.**

ARTICLE 24. The shareholders will meet at regular or special shareholders' meetings. The former shall be held once a year within the first four months, to take resolutions with respect to the matters that correspond to them without it being necessary to mention them in the respective notice of call. The latter may be held at any time, when required by corporate needs, to take resolutions in any matter that the law or by-laws provide must be submitted to the general shareholders' meetings, and so long as such matters are mentioned in the pertinent notice of call. When a special general meeting must take a resolution on matters that correspond to a regular general meeting, its operation and resolution will be subject, in so far as pertinent, to the quorums and majorities applicable to the latter kind of general meetings.

ARTICLE 25. The following matters must be transacted at regular general shareholders' meetings:

a) The examination of the company's situation and of the reports of the external auditors and the approval or rejection of the annual report, of the balance sheet, of the financial statements and demonstrations submitted by the administrators or liquidators of the company;

b) The distribution of the profits of each financial period and especially the distribution of dividends;

c) The election or revocation of the members of the board of directors and of the liquidators;

d) In general any matter of corporate interest that does not correspond to the special general shareholders' meeting.

ARTICLE 26: The following are matters that must be transacted at special general shareholders' meetings:

a) The dissolution of the company;

b) The transformation, merger or division of the company, and the amendment of its by-laws;

c) The issue of bonds or debentures convertible into shares;

d) The disposal of the fixed asset and liabilities of the company or of all its assets;

e) The granting of real or personal guarantees to secure obligations of third parties, unless they are affiliated companies, in which case the approval of the board of directors will be sufficient, and

f) The rest of the matters that by law or by the by-laws correspond to the resolution or the competence of the general shareholders' meetings.

The matters referred to in letters a) b), c) and d) may only be resolved at general meeting held before a notary public, who must certify that the minutes are the true expression of what occurred and was resolved at the meeting.

ARTICLE 27. The general meetings will be called by the Board of Directors of the company in all the cases provided for by the laws.

ARTICLE 28. The call to general shareholders' meetings will be made through a prominent notice that will be published at least three times on different days in the newspaper of one of the corporate domiciles determined by the general shareholders' meeting, determination that will be maintained until such time as another resolution is taken at a future general shareholders' meeting. In the absence of a determination, the call will be made by the Official Gazette.

ARTICLE 29: The general shareholders' meetings will be called to order at first call with the absolute majority of the voting shares issued, and in second call, with those that are present or represented regardless of their number, and the resolutions will be taken with the absolute majority of the voting shares present or represented, with the exception of the cases indicated in the following article. The notices of the second call may only be published when the General Meeting to be held at first call has failed, and in any event, the new General Shareholders' Meeting must be called to be held within the forty five days following the date established for the general meeting that was not held. The general meetings shall be chaired by the chairman of the Board or by whoever acts in his stead, and the person appointed as secretary, if any, will act as such, otherwise the general manager will act in his stead.

ARTICLE 30: The resolutions of the special general shareholders' meetings that imply an amendment of the corporate by-laws, must be taken with the absolute majority of the voting shares issued. Resolutions with regard to the following matters will require the affirmative vote of two thirds of the voting shares issued:

a) The transformation of the company, its division and its merger with another company.

b) The advanced dissolution of the company;

c) The change of corporate domicile;

d) The reduction of the equity capital;

e) The approval of contributions and estimate of property not consisting in cash;

f) The reduction in the number of members of the Board.

g) The alienation of the assets and liabilities of the company or of all its assets;

h) The way in which the corporate benefits will be distributed.

ARTICLE 31: Only the titleholders of shares listed in the shareholders' register five days before the date on which the respective general meeting is held may participate in the general meetings and exercise their right to speak and vote. Even if the directors and managers are not shareholders, they can participate in the general meetings with the right to speak.

ARTICLE 32: The shareholders may be represented at the general meetings by another person, even if he is not a shareholder. The authority to represent them must be given in writing, for all the shares to which the principal is entitled as of the date indicated in the preceding article.

ARTICLE 33: Record will be left in a book of minutes that will be kept by the secretary, if any, or otherwise, by the general manager of the company stipulating the attendance, deliberations and resolutions of the general meetings.

The meetings shall be signed by those who acted as chairman and secretary of the general meeting and by three shareholders elected thereat, or by all those present, if less than three. The minutes will be understood to be approved from the moment they are signed by the persons indicated in the preceding paragraph, and since that date the resolutions referred to therein can be carried out. If any of the persons appointed to sign the minutes considers that it contains inaccuracies or omissions, he will be entitled to set forth, before signing them, the corresponding exceptions. The deliberations and resolutions of the General Meetings will be written into the book of minutes by any media, provided these offer the safety that there can be no insertions, eliminations or any other adulteration that can affect the accuracy of the minutes.

ARTICLE 34: Every year the regular general shareholders' meeting will appoint independent external auditors with the purpose of examining the accounts, inventory, balance sheet and other financial results of the company, and with the obligation to report in writing to the next regular general shareholders' meeting on the fulfillment of the assignment.

TITLE V

**Balance and distribution of profits**

ARTICLE 35: Every year the company will prepare a general balance sheet as of 31st December. The board of directors must submit to the consideration of the regular general shareholders' meeting an annual report about the situation of the company in the last financial period, together with the general balance sheet, the profit and loss statement and the report that the external auditors submit in this connection.

ARTICLE 36: For the purposes of the annual distribution of the net profits of each fiscal year, the Ordinary Shareholders' Meeting shall determine annually the part of such profits to be distributed as a dividend to the shareholders. Such determination shall be made by the Shareholders' Meeting without being subject to the minimum of 30% established in article 79 of the Corporations' Law No. 18.046, and may agree the distribution of a lower percentage. In any event, the Board of Directors may, under the personal liability of the directors who concur to the relevant resolution, distribute interim dividends during the respective fiscal year with charge of the same year's profits, provided that there are no accumulated losses.

TITLE VI

**Dissolution, liquidation and arbitration**

ARTICLE 37: The company will be dissolved in those cases determined by the law and these by-laws.

ARTICLE 38. Upon dissolution of the company, the board of directors will be understood to subsist until the general shareholders' meeting that will appoint the liquidator or liquidators that will carry out the liquidation is held. The general meeting will also establish their fees. Their authorities and those of the existing attorneys-in-fact or that may be appointed, shall be understood limited to the legal authorities. During the liquidation process the liquidator or liquidators will be obliged to make an annual call to general shareholders' meetings for the purposes provided for in the law. Otherwise the shareholders that represent, at least, ten per cent of the shares issued may request the ordinary justice to make the call.

ARTICLE 39. The differences that occur among the shareholders in their capacity of such, or between these and the company, or their administrators, either during the life of the company or during its liquidation, shall be subject to the decision of a mixed arbitrator, who will resolve in only instance and without any form of judicial proceeding, and against whose resolutions there will be no remedy, with the exception of cassation in form by ultra petita and complaint appeal. The parties will appoint the arbitrator by mutual agreement, and if this appointment is not made, the ordinary justice will be called upon to make the appointment from among those persons that are performing or have performed the office of alternate justice of the Supreme Court of Justice.

TRANSITORY PROVISIONS

**First Transitory Article**: The Extraordinary General Shareholders Meeting of Celulosa Arauco y Constitución S.A., hereinafter also and indistinctly referred to as THE ABSORBING CORPORATION, held on October 24, 2013, resolved and approved the merger by incorporation to THE ABSORBING CORPORATION of the company denominated Forestal Viñales S.A., hereinafter also and indistinctly referred to as THE ABSORBED CORPORATION, being THE ABSORBED CORPORATION absorbed by THE ABSORBING CORPORATION acquiring all its assets, permits, authorizations and liabilities, succeeding it in all its rights and obligations, being incorporated to THE ABSORBING CORPORATION the totality of the net worth of THE ABSORBED CORPORATION and the shareholders of the latter other than those of THE ABSORBING CORPORATION, which absorbed company that will become dissolved and liquidated as of the date of the merger, that is, as of November 1, 2013, being it understood by all purposes that THE ABSORBING CORPORATION is the legal successor of THE ABSORBED CORPORATION.

By resolution adopted by the Meeting indicated at the beginning of this transitory article, the day of November 1, 2013 will be understood the date of the merger as referred in article 158 of the Regulation of Corporations, and the date in which the legal, tax and financial merger resolutions adopted by the above-mentioned Meeting will become effective. THE ABSORBING CORPORATION, for financial purposes, hereby makes its own and assumes in its favor, and for its own account, all the commercial and accounting operations related to the assets and liabilities that by virtue of the merger so many times mentioned will acquire, carried out and to be carried out by THE ABSORBED CORPORATION since August 1, 2013, which latter date is the date of the Pro Forma Balance Sheet referred in the "Resolution Two" above, to the date of the merger, that is, up to November 1, 2013.

The merger is approved in the manner in which it is established by, and in accordance with, the resolutions singularized as "One" to "Four" adopted by the Extraordinary General Shareholders Meeting of THE ABSORBING CORPORATION that resolved the merger held on the date mentioned at the beginning of this transitory provision, which resolutions are considered to form an integral part of this transitory article for all purposes.

As a result of the merger, THE ABSORBING CORPORATION will be the legal successor of THE ABSORBED CORPORATION, for all legal purposes, assuming joint and several responsibility for the payment of all the taxes for which the company absorbed indicated above is obligated or could become obligated in the future. In addition, THE ABSORBING CORPORATION assumes joint and several liability for, and undertakes to pay, all the taxes that may correspond in accordance with the relevant termination balance sheet that THE ABSORBED CORPORATION must prepare in accordance with the provisions in article 69 of the Tax Code.

Capital Increase. The Extraordinary General Shareholders Meeting of THE ABSORBING CORPORATION indicated at the beginning of this transitory provision resolved, on occasion of the merger approved by it, to increase the corporate capital from US$347,550,536.83.- divided into 113,152,446 shares without par value, up to US$347,992,909.54.- divided into 113,159,655 shares without par value. This capital increase, amounting to US$442,372.71, will be made and paid up by means of the issuance of 7,209 new shares without par value, which the Board of Directors shall resolve to issue, at an issuance value of US$61.3639492301 per share, within the period that expires on November 1, 2013, which shares shall become subscribed for and paid with the net worth of THE ABSORBED COMPANY as of November 1, 2013, that THE ABSORBING COMPANY will absorb on November 1, 2013, that is, on the date of the merger approved by the Extraordinary General Shareholders Meeting mentioned above. Upon the approval and resolution of the merger referred to in this transitory provision by THE ABSORBED CORPORATION, and no later than on the day of the merger, that is on November 1, 2013, the Board of Directors of THE ABSORBING CORPORATION shall issue the 7,209 shares mentioned above, which it will distribute directly among the shareholders of THE ABSORBED CORPORATION, different than those of THE ABSORBING CORPORATION, that have such capacity on the day that the Board of Directors of THE ABSORBING CORPORATION determines for the distribution and exchange, being obligated to establish this day on a date which is within the one hundred and twenty (120) days subsequent to the day of the merger, that is, subsequent to November 1, 2013.

The distribution will be made in the manner and proportions of exchange suggested by the expert Mr. Gonzalo Mercado Trujeda in his Expert's Report approved by the Extraordinary General Shareholders Meeting of THE ABSORBING CORPORATION mentioned in this transitory provision, exchanging to the shareholders of THE ABSORBED CORPORATION, other than those of THE ABSORBING CORPORATION, their shares in said corporation for shares of THE ABSORBING CORPORATION in the following proportion:

For each share that the shareholders of THE ABSORBED CORPORATION referred to above possesses, he (she, it) shall be entitled to receive, in exchange for such share, 75.09499718 shares in THE ABSORBING CORPORATION.

The shares product of fractions of shares of THE ABSORBING CORPORATION that result in the distribution and exchange indicated above, shall be freely placed by the Board of Directors of THE ABSORBING CORPORATION, belonging to the owners of such fractions whatever is obtained in the transaction. The Board of Directors shall have broad authority to make this placement of shares product of fractions as well as to round by approximation this fractions when making the distribution.

The operations of issuance and payment of the shares indicated in this transitory provision shall be completed within the period that expires on the day of the merger, that is, November 1, 2013. The Board of Directors shall have broad authority to adopt the resolutions it may consider necessary to carry out and materialize the merger and the issuance, distribution and exchange of shares to which this transitory provision refers to."

**Second Transitory Article**: The capital increase from US$347,992,909.54.- divided into 113,159,655 shares, without nominal value, totally subscribed and paid, to US$353,617,517.91 divided into the same 113,159,655 shares of an only and unique Series, without nominal value, agreed upon in Extraordinary General Shareholders Meeting held on April 22, 2014, was entered and paid through the capitalization of the net worth account denominated "*Sobreprecio colocaciones acciones propias*" (overprice on the placement of the Company's own shares) by the sum of US$5,624,608.37.

**Third Transitory Article**: The capital increase from US$353,617,517.91.- divided into 113,159,655 shares, without nominal value, to US$1,053,579,589.35, divided into 124,537,452 shares, without nominal value, agreed upon in Extraordinary General Shareholders Meeting held on May 19th, 2020, will be entered and paid by the following terms and conditions: a / Through the issuance, in one or more stages and on the date or dates determined by the Board of Directors, of up to 11,377,797 payment shares (*acciones de pago*), without nominal value, that the Board of Directors shall issue to be paid by shareholders with a preferential right to them, or its assignees, in cash, at a price of US$61.52 per share. Those shareholders who have this capacity on the fifth business day prior to the day on which the first day of the preferential subscription option for the shareholders begins, will have a preferential right to subscribe a number of shares in proportion to the shares they hold on that date, and the Board of Directors shall be empowered to approximate the fractions of shares that occur at the determination of the prorrata. The shares that each shareholder may subscribe, in the respective proportion, shall be paid in the act of subscription, on the spot (*al contado*), in cash or by a bank check of the subscriber to the order of the company, in Dollars of the United States of America, or in pesos, according to the "*Dólar Observado*" exchange rate published in the Official Gazette on the day of payment, or the previous business day if the payment day is not a business day. Shares that are not subscribed by the shareholders entitled to them or their assignees within a period of thirty calendar days from the day in which the preferential subscription offer to shareholders term begins, will not be placed and their issue will be without effect. b / The shareholders may transfer all or part of their option right to subscribe the shares referred to in the preceding letter a) to which they are entitled, which they shall do in accordance with the procedure established in the Corporations Law No. 18,046 and the Regulation of Corporation (*Reglamento de Sociedades Anónimas)*. c / This capital increase must be fully paid within the term that expires on December 31, 2021. If on that date there are still unissued shares charged to the capital increase, the capital of the Company will be reduced automatically (*de pleno derecho*) to the amount actually paid, and to the shares actually issued. d / The Board of Directors of the Company shall be broadly empowered to adopt all agreements and establish the procedures that may be necessary in order to carry out the capital increase agreed upon in the Extraordinary General Shareholders Meeting referred to at the beginning of this transitory article, and, in general, to resolve all situations, modalities, complements, modifications and details that may arise, or be required in relation to this amendment of by-laws.

<sup>1</sup>**DECLARATION.** By public deed dated January 28, 2022, granted in the Public Notary of Santiago of Mr. Iván Torrealba Acevedo, Mr. Cristián Infante Bilbao, in his capacity of general manager (*gerente general*) of the Company, declared that the capital of the Company has been reduced *ipso jure* (*de pleno derecho*) to the amount effectively subscribed and paid of US$803,617,554.31 which is divided into 120,474,350 shares, all of a unique series and without nominal value.

The Board of Directors of the Company is broadly empowered to adopt all agreements and establish the procedures that would be necessary in order to carry out the capital increase agreed upon in the Extraordinary General Shareholders Meeting referred to at the beginning of this transitory article.

**Fourth Transitory Article**: The capital increase from US$803,617,554.31, divided into 120,474,350 shares, without nominal value, to US$2,003,611,156.81, divided into 138,745,350 shares, without nominal value, as agreed at the Extraordinary General Shareholders Meeting held on October 17, 2024, will be entered and paid by the following terms and conditions: a / Through the issuance, at the aforementioned Extraordinary General Shareholders' Meeting, of 4,567,774 payment shares (*acciones de pago*), without nominal value, to be paid by the shareholders with preferential right to them, or its assignees, in cash, at a price of US$65.6775 per share. Those shareholders who have this capacity on the fifth business day prior to the day on which the first day of the preferential subscription option for shareholders begins, will have a preferential right to subscribe a number of shares in proportion to the shares they hold on that date. Notwithstanding, if the notice of the preferential subscription option was communicated at the same meeting, pursuant to Article 27 of the Regulation of Corporations (*Reglamento de Sociedades Anónimas)*, for the purpose of determining the options corresponding to shareholders, the shares registered in their name at the time the meeting begins shall be considered. The Board of Directors or this Meeting shall be empowered to approximate the fractions of shares that occur at the determination of the prorrata. The shares that each shareholder may subscribe, in the respective proportion, shall be paid in cash or by a subscriber's check payable to the company, in Dollars of the United States of America or in pesos, according to the "*Dólar Observado*" exchange rate published in the Official Gazette on the day of payment, or the previous business day if the payment date is not a business day. Shares that are not subscribed by the shareholders entitled to them or their assignees within a period of thirty calendar days from the day in which the preferential subscription offer to shareholders term begins, will not be placed, and their issue will be without effect. b / Through the issuance, in one or more stages and on the date or dates determined by the Board of Directors, of up to 13,703,226 paid shares (*acciones de pago*), without nominal value, that the Board of Directors will issue, to be paid by shareholders with preferential right to them, or its assignees, in cash, at a price of US$65.6775 per share. Those shareholders who have this capacity on the fifth business day prior to the day on which the first day of the preferential subscription option for shareholders begins, will have a preferential right to subscribe a number of shares in proportion to the shares they hold as of that date, and the Board of Directors shall be empowered to approximate the fractions of shares that occur at the determination of the prorrata. The shares that each shareholder may suscribe, in the respective proportion, shall be paid in cash or by a subscriber's check payable to the company, in Dollars of the United States of America, or in pesos, according to the "*Dólar Observado*" exchange rate published in the Official Gazette on the day of payment, or the previous business day if the payment date is not a business day. Shares that are not subscribed by shareholders entitled to them or their assignees within a period of thirty calendar days from the day in which the preferential subscription offer to shareholders term begins, will not be placed, and their issue will be without effect. c **/** The shareholders may transfer all or part of their option right to subscribe the shares referred to in the preceding letter, to which they are entitled, which they shall do in accordance with the procedure established in the Corporations Law No. 18,046 and the Regulation of Corporation (*Reglamento de Sociedades Anónimas)*. d **/** This capital increase must be fully paid by December 31, 2026. If on that date there are still unissued shares charged to the capital increase, the capital of the Company will be reduced automatically (*de pleno derecho*) to the amount actually paid, and to the shares actually issued. e / The Board of Directors of the Company shall be broadly empowered to adopt all agreements and establish the procedures that may be necessary in order to carry out the capital increase agreed upon in the Extraordinary General Shareholders Meeting referred to at the beginning of this transitory article, and, in general, to resolve all situations, modalities, supplements, modifications and details that may arise, or be required in relation to this amendment of by-laws.

<u>CERTIFICATION:</u>

In accordance with article 7° of Chilean Law 18,046 on Corporations, the Chief Executive Officer of Celulosa Arauco y Constitución S.A. who signs this copy of the By-laws, herein certifies that this document contains the updated and in force text of the By-laws of Celulosa Arauco y Constitución S.A. as of the date hereof. These By-laws correspond to the text set forth in the public deed of Celulosa Arauco y Constitución S.A.'s incorporation, granted on October 28, 1970 by the Notary of Santiago,Mr. Ramón Valdivieso Sánchez, as duly modified pursuant to all its amendments.

Santiago, March 18, 2026.

**Cristián Infante Bilbao**

**Chief Executive Officer**

**Celulosa Arauco y Constitución S.A.**

## Exhibit 8.1

EXHIBIT 8.1

The following table sets forth our ownership interests in our subsidiaries as of December 31, 2025.

---

| | | |
|:---|:---|:---|
|  | **Country of** <br>**incorporation** | **Total stock held** <br>**(%)** |
| Agrícola Ranquillón SpA | Chile | 98.6430  |
| Agrícola San Carlos SpA | Chile | 99.9484  |
| Agrícola Santa Emilia SpA | Chile | 98.9484  |
| Agrícola Siberia SpA | Chile | 98.6430  |
| Altovento SpA | Chile | 99.9484 |
| Arauco Argentina S.A. | Argentina | 99.9801  |
| Arauco Australia Pty Ltd. (1) | Australia | 99.9990  |
| Arauco Bioenergía SpA | Chile | 99.9990  |
| Arauco Canada Ltd. | Canada | 99.9991  |
| Arauco Celulose do Brasil S.A. | Brazil | 99.9990  |
| Arauco Colombia S.A. | Colombia | 99.9983  |
| Arauco do Brasil S.A. (2) | Brazil | 99.9991  |
| Arauco Empreendimentos Florestais MS Ltda. | Brazil | 99.9991  |
| Arauco Europe Cooperatief U.A. | The Netherlands | 99.9990  |
| Arauco Industria de México S.A. de C.V. | Mexico | 99.9991  |
| Arauco Middle East DMCC (3) | United Arab Emirates | 99.9990  |
| Arauco North America, Inc. | U.S.A. | 99.9991  |
| Arauco MS Participações S.A. | Brazil | 99.9991  |
| Arauco Perú S.A. | Peru | 99.9990  |
| Arauco Participações Florestais Ltda. | Brazil | 99.9991  |
| Arauco Industria de Paineis S.A. | Brazil | 99.9991  |
| Arauco Porto Brasil S.A. | Brazil | 99.9981  |
| Arauco Ventures Limited | United Kingdom | 99.9990  |
| Arauco Wood (China) Company Limited | China | 99.9990  |
| Arauco Wood Limited | United Kingdom | 99.9991  |
| Araucomex S.A. de C.V. | Mexico | 99.9991  |
| Araucomex Servicios S.A. de C.V. | Mexico | 99.9991  |
| Consorcio Protección Fitosanitaria Forestal S.A. | Chile | 56.8312  |
| Forestal Arauco S.A. | Chile | 99.9484  |
| E2E SpA | Chile | 99.9986  |
| Forestal Cholguán S.A. | Chile | 98.6430  |
| Inversiones Arauco Internacional Limitada | Chile | 99.9990  |
| Investigaciones Forestales Bioforest SpA | Chile | 99.9489  |
| Leasing Forestal S.A. | Argentina | 99.9801  |
| Lemu Earth SpA | Chile | 96.3692  |
| Lemu Global Limited | United Kingdom | 96.3692  |
| Lemu Inc. | U.S.A. | 96.3692  |
| Maderas Arauco Costa Rica S.A. | Costa Rica | 99.9990  |
| Maderas Arauco S.A. | Chile | 99.9986  |
| Mahal Empreendimentos e Participações S.A. | Brazil | 99.9991  |
| Novo Oeste Gestão de Ativos Florestais S.A. | Brazil | 99.9991  |
| Parque Eólico Girasol SpA. | Chile | 99.9484 |
| Parque Eólico El Jazmín SpA. | Chile | 99.9484 |
| Parque Eólico El Trébol SpA.  | Chile | 99.9484 |
| Parque Eólico Hortensias SpA. | Chile | 99.9484 |
| Parque Eólico Las Calas SpA. | Chile | 99.9484 |
| Parque Eólico Las Dalias SpA. | Chile | 99.9484 |
| Parque Eólico Las Fresias SpA. | Chile | 99.9484 |
| Parque Eólico Lavanda SpA. | Chile | 99.9484 |
| Parque Eólico Los Cardos SpA. | Chile | 99.9484 |
| Parque Eólico Tulipanes SpA. | Chile | 99.9484 |
| Servicios Aéreos Forestales Ltda. | Chile | 99.9991  |
| Servicios Logísticos Arauco SpA | Chile | 99.9992  |
| Tecverde S.A. | Brazil | 91.1131  |
| Woodaffix LLC.  | U.S.A. | 99.9991  |

---

(1) Company dissolved in February 2026.

(2) Company dissolved in January 2026.

(3) Company under ongoing liquidation.

## Exhibit 11.1

Exhibit 11.1

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**MANUAL FOR HANDLING MARKET-RELEVANT INFORMATION**

**General Rule No. 270, dated December 31, 2009, from the current Financial Market Commission (formerly, the Superintendence of Securities and Insurance)**

**CELULOSA ARAUCO Y CONSTITUCIÓN S.A.**

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**Contents**

**Title I Definitions** 

**Title II Introduction**

**Title III Regulations**

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**TITLE I**

**DEFINITIONS**

The terms and abbreviations indicated below, for the purposes of this Manual, are defined and understood as follows:

**CMF**: Commission for the Financial Market of the Republic of Chile.

**LMV**: Securities Market Law No. 18,045.

**LSA**: Corporations Law No. 18,046.

**Company**: The corporation named Celulosa Arauco y Constitución S.A.

**Securities**: Shares, bonds, and other public offering instruments issued by, or to be issued by Celulosa Arauco y Constitución S.A., or securities whose price or result depends or is conditioned, in whole or in significant part, on the variation or evolution of the price of said securities. For this latter case, the definition of General Rule No. 269, dated 12.31.09, from the CMF, regarding when it is understood that the price or result of a security depends or is conditioned in significant part on the variation or evolution of the price of another, will apply.

**Shares**: Shares issued by Celulosa Arauco y Constitución S.A.

**Board of Directors**: The Board of Directors of Celulosa Arauco y Constitución S.A.

**Manual**: This Manual for Handling Market-Relevant Information, referred to in General Rule No. 270, dated December 31, 2009, from the Commission for the Financial Market.

**Privileged or Confidential Information**: Any privileged information related to a company, its subsidiaries and affiliates, its businesses, or one or more of the securities issued by it, not disclosed to the market and whose knowledge, by its nature, is capable of influencing the price of the securities issued. Also considered privileged information is reserved information defined below. Additionally, privileged information includes information possessed about decisions regarding acquisition, disposal, and acceptance or rejection of specific offers from an institutional investor in the securities market.

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**Essential Information**: Privileged information that a prudent person would deem important when making investment decisions.

**Reserved Information**: Any essential information that, with the approval of three-quarters of the Directors of a corporation, has been designated as reserved.

**Market-Relevant Information**: All privileged information that, while not essential, is useful for a thorough financial analysis of a company, its securities, or their offering. This includes all legal, economic, and financial information relevant to the Company's business operations or that may significantly impact them.

Other terms not defined in this Title will have, for the purposes of this Manual, the meaning attributed to them by the Securities Market Law No. 18,045, the Corporations Law No. 18,046, the Commercial Code, and the regulations issued by the Commission for the Financial Market.

**TITLE II INTRODUCTION**

The Company's Board of Directors, in compliance with the provisions contained in General Rule No. 270 of 2009 from the CMF, has established in this Manual for Handling Market-Relevant Information the regulations that the Company will apply in this matter. This manual complies with the standards of Law No. 20,382 on Corporate Governance of Companies, and Law No. 21,314, which, among other matters, established new transparency requirements and reinforced the responsibilities of market agents.

The provisions of this Manual are mandatory for the Company's Directors, Chief Executive Officer, Managers, key executives, administrators, employees, advisors with access to privileged information, and external auditors.

Notwithstanding the above, the Board of Directors has deemed it appropriate to state that any person who, by reason of their position, activity, or relationship, has access to Privileged Information of the Company, whether or not mentioned among the persons for whom the rules of this Manual are mandatory, must, in compliance with the personal obligation imposed by articles 60 and 165 of the LMV, maintain strict confidentiality, not using or disclosing the information for their own or others' benefit, nor acquiring or disposing of nor recommending acquiring or disposing of, for themselves or third parties, directly or through other persons, the Securities on which they possess privileged information.

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**TITLE III REGULATIONS**

**1.** **CORPORATE BODY OF THE COMPANY THAT HAS ESTABLISHED THIS MANUAL AND MAY MODIFY IT IN THE FUTURE** 

This Manual has been established and amended by the Company's Board of Directors, which retains the authority to modify it at any time in the future.

**2.** **CORPORATE BODY OF THE COMPANY RESPONSIBLE FOR COMPLIANCE WITH THE RULES OF THIS MANUAL** 

The Chief Executive Officer of the Company shall be responsible for disclosing, enforcing, and ensuring compliance with the rules and procedures of this Manual. In the absence of the Chief Executive Officer, and without the need to provide proof to third parties, the Senior Vice-President of Human Resources & Sustainability will assume these responsibilities.

Notwithstanding the above, and only in specific and extraordinary cases, the Chief Executive Officer and the Senior Vice-President of Human Resources & Sustainability may delegate one or more of the responsibilities outlined above to other executives of the Company. In such cases, they are required to inform the Board of Directors of any delegations made.

**3.** **INFORMATION ON HOLDINGS AND TRANSACTIONS OF SECURITIES** 

**SHARE HOLDINGS**

Pursuant to Article 17 of the LMV, Directors, Managers, Administrators, and key executives of the Company, as well as entities directly controlled by them or through other persons, must disclose their holdings in the Company's securities, as well as those of the business group to which it belongs, to each of the country's stock exchanges where the Company is registered. This information must be reported within three business days of assuming their position, being incorporated into the public register under Article 68 of the LMV, leaving the position, being removed from the register, or whenever there is a significant change in their holdings. This obligation must be fulfilled in accordance with General Rule No. 277, dated January 19, 2010, issued by the CMF.

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**TRANSACTIONS AND HOLDINGS OF SECURITIES ISSUED BY OTHER ENTITIES BELONGING TO THE SAME BUSINESS GROUP**

The Company has not considered implementing systems for the disclosure of transactions and holdings of securities issued by other entities within the business group to which the Company belongs, or securities whose price or value depends on or is influenced by the price fluctuations of the Company's securities, carried out or held by Directors, Chief Executive Officer, key executives, Managers, and other persons related to these entities.

**4.** **TRANSACTION POLICY AFFECTING DIRECTORS, KEY EXECUTIVES, AND OTHER INDICATED PERSONS** 

To ensure fair and equal access to public information generated by the Company for all market participants, the following blocking period is established. During this period, no Director, Chief Executive Officer, Manager, Administrator, key executive, their spouses, partners, or relatives up to the second degree of consanguinity or affinity, nor advisors, external auditors, employees with access to Privileged Information, or entities directly controlled by them or through third parties, may acquire or dispose of the Company's securities, or the securities of its direct and indirect parent companies and subsidiaries.

As of the issuance date of this Manual, the following parent and subsidiary companies are included:

· AntarChile S.A.

· Empresas Copec S.A.

· Forestal Cholguán S.A.

· Consorcio de Protección Fitosanitaria Forestal S.A.

Each blocking period will commence thirty days prior to the date set for the disclosure of the next financial statements, which will be announced in advance and published on the Company's website. The blocking period will end at 24:00 on the next business day following the delivery of the financial statements to the CMF.

The blocking period indicated in this section is established without prejudice to the personal obligations of confidentiality of Privileged Information and the prohibition of its use imposed on each person by articles 60, 165, and following of the LMV.<br>

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The exercise of the preferential subscription right of shares of the Company, its direct or indirect parent companies, and subsidiaries, whether these rights come from a single preferential option period or two or more successive periods, is exempt from the prohibition indicated above in this section.

**5.** **CONTINUOUS INFORMATION DISSEMINATION MECHANISMS BY THE COMPANY** 

The Company discloses its Privileged Information using the following mechanisms:

5.1 Essential information, as defined in articles 9 and 10 of the LMV, is disclosed by sending it to the CMF and the Stock Exchanges in the form, deadlines, and conditions established in section A of numeral 2.2 of Section II of General Rule No. 30 of 1989 from the CMF, without prejudice to the Board of Directors' authority to implement, in addition to the previous mechanism, other mechanisms of general application or for a particular case. To ensure an adequate flow of internal communications that allows timely detection of events or information that may be essential, all persons for whom the provisions of this Manual are mandatory must inform the Board of Directors and/or the General Management as soon as any event occurs or any information is produced that, in the opinion of the person obliged to inform, may be considered essential.

5.2 Reserved information, as defined in article 10 of the LMV, is disclosed by sending it to the CMF in the form, deadlines, and conditions established in section B of numeral 2.2 of Section II of General Rule No. 30 of 1989 from the CMF, information that, when its reserve ceases, is disclosed to the market as indicated in 5.1 above.

5.3 Market-Relevant Information will be disclosed to the general market as follows:

Each time the Company provides Privileged Information to a specific group in the market that, according to section C of Section II of General Rule No. 30 of 1989 from the CMF, must be classified as "Market-Relevant Information," it will proceed to disclose it to the general market simultaneously with delivery to the specific group. If this is not possible, the disclosure will be made within the next 24 hours.

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The disclosure referred to in the previous paragraph will be made by publishing the information on the Company's website <u>(www.arauco.com)</u>, without prejudice to the Board of Directors agreeing to additional general or specific disclosure mechanisms.

Notwithstanding the above, Market-Relevant Information provided to third parties to comply with legal regulations or contractual relationships will not be disclosed, provided that the recipient is legally or contractually obligated to maintain the confidentiality of such information.

**6.** **MECHANISMS FOR SAFEGUARDING CONFIDENTIAL INFORMATION** 

The general measures for safeguarding confidential information maintained and will be maintained by the Company are as follows:

6.1 The General Management has prepared and will keep updated and available to the Board of Directors a list of persons for whom the provisions of this Manual are mandatory, as indicated in the second paragraph of Title II, for the purposes of its application, and especially for what is referred to in section 4 above.

6.2 The transfer of information and internal communications, especially those with the persons mentioned in the list referred to in 6.1 above, are mainly carried out by electronic means, which have adequate protection and backup measures.

6.3 The Company maintains most of its files in electronic media, which have adequate protection and backup measures and are under the custody of the Company's Corporate Finance Management.

6.4 The Company's paper files stored with traditional systems are properly safeguarded under the custody of the Managements responsible for such information.

6.5 The Chief Executive Officer and the Manager of People and Sustainability will ensure that information related to the Company's legal, economic, and financial situation is not disclosed to persons other than those who, due to their position, activity, or relationship with the Company, must know such information before it is made available to shareholders and the public.

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**7.** **OFFICIAL REPRESENTATIVES OR SPOKESPERSONS OF THE COMPANY** 

The Company's representatives or spokespersons before third parties and the media will be the Chairman of the Board, the Vice-Chairmen of the Board, the Chief Executive Officer of the Company, the Manager of People and Sustainability, and the Corporate Finance Manager.

Any information provided to the general market or the media by the representatives or spokespersons mentioned above shall be considered, for all purposes, as official information issued by the Company.

**8.** **MECHANISMS FOR DISCLOSING THE MANUAL AND TRAINING ACTIVITIES REGARDING IT** 

The disclosure of this Manual will be carried out as follows:

8.1 The Company will submit an electronic copy of this Manual to the CMF within 48 hours of its approval or modification by the Board of Directors, as indicated in Section 11 of this document.

8.2 The full and updated text of this Manual will be made available to interested parties on the Company's website (www.arauco.com) within the same period referred to in 8.1 above, and will also be available at the Company's offices at Avenida El Golf 150, 14th floor, Las Condes, Santiago.

8.3 Any modification to this Manual decided by the Board of Directors will be informed to the CMF and the Stock Exchanges as an "Essential Fact."

On the same day that the "Essential Fact" referred to in the previous paragraph is reported, the new version of the Manual will be incorporated into the Company's website.

Finally, within the same period just mentioned, the text of the Manual available at the Company's offices will be updated for interested parties.

8.4 The General Management and/or the People and Sustainability Management of the Company shall implement the dissemination or training activities they deem necessary on the matters contained in this Manual.

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**9.** **RULES ON THE APPLICATION OF SANCTIONS** 

Alleged violations of the rules of this Manual found by the Board of Directors or the General Management of the Company will be investigated by the Board of Directors and sanctioned by it, which may apply one or more of the following measures: verbal or written reprimand, always recorded in the corresponding minutes of the respective Board meeting; dismissal of the offender; any other measure deemed appropriate by the Board of Directors according to the importance of the observed fault; reporting the facts to the CMF; and filing a complaint or lawsuit by the Company, bringing the investigated facts to the attention of the CMF and the competent courts.

**10.** **RESOLUTION OF CONFLICTS RELATED TO THE INTERPRETATION OF THIS MANUAL** 

The Board of Directors of the Company will resolve any and all conflicts arising from the interpretation of this Manual, always with broad powers and without any limitation.

**11.** **APPROVAL OF THIS MANUAL AND ITS MODIFICATIONS** 

This Manual was approved by the Company's Board of Directors in a meeting held on March 29, 2010, and was modified by the same Board in meetings held on January 22, 2019, August 24, 2021, January 23, 2024, and July 23, 2024. It will come into effect once the new text is published on the Company's website. In case of modifications to this Manual, the date of the Board meeting in which the modification was approved must be recorded in this section.

**12.** **VALIDITY** 

This Manual will remain in effect indefinitely unless the Company's Board of Directors adopts a resolution to the contrary. Any modifications to the Manual will take effect once the full, updated text is published on the Company's website.

**13.** **TRANSITIONAL PROVISIONS** 

**Transitional Provision No. 1**: The Company's Board of Directors has decided to inform the Boards of Directors of the Company's direct subsidiaries about this Manual so that they are aware of the criteria and policies of their parent company, Celulosa Arauco y Constitución S.A., regarding the matters referred to in this Manual.

Santiago, July 23, 2024.

![](ara027_ex11-1img01.jpg)<br>

**Certificate:** The undersigned, Chief Executive Officer of the corporation named Celulosa Arauco y Constitución S.A., certifies that this Manual is a true copy of the one approved by the Company's Board of Directors in a meeting held on March 29, 2010, which was modified in meetings held on January 22, 2019, August 24, 2021, January 23, 2024, and July 23, 2024.

Santiago, July 23, 2024.

Cristián Infante Bilbao

Chief Executive Officer

Celulosa Arauco y Constitución S.A.

![](ara027_ex11-1img02.jpg)<br>

## Exhibit 12.1

EXHIBIT 12.1

I, Cristián Infante Bilbao, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 20-F of Celulosa Arauco y Constitución S.A.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: March 20, 2026

---

| | |
|:---|:---|
| /s/ Cristián Infante Bilbao  | /s/ Cristián Infante Bilbao  |
| Name: | Cristián Infante Bilbao |
| Title: | Chief Executive Officer |

---

## Exhibit 12.2

EXHIBIT 12.2

I, Gianfranco Truffello, certify that:

1. I have reviewed this annual report on Form 20-F of Celulosa Arauco y Constitución S.A.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: March 20, 2026

---

| |
|:---|
| /s/ Gianfranco Truffello |
| Name: Gianfranco Truffello |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer |

---

## Exhibit 13.1

EXHIBIT 13.1

**Certification** 

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 <br>(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)** 

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of Celulosa Arauco y Constitución S.A. (the "Company"), does hereby certify, to such officer's knowledge, that:

The Annual Report on Form 20-F for the year ended December 31, 2025 of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 20-F fairly presents, in all material respects, the financial condition, results of operations and cash flows of the Company.&nbsp;&nbsp;&nbsp;&nbsp;

Date: March 20, 2026

---

| |
|:---|
| /s/ Cristián Infante Bilbao |
| Name: Cristián Infante |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |

---

Date: March 20, 2026

---

| |
|:---|
| /s/ Gianfranco Truffello |
| Name: Gianfranco Truffello |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer |

---