UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of March, 2025

Commission File Number 33-99720

ARAUCO AND CONSTITUTION PULP INC.

(Translation of registrant’s name into English)

El Golf 150

Fourteenth Floor

Santiago, Chile

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ¨

ARAUCO AND CONSTITUTION PULP INC

TABLE OF CONTENTS

Item		Page

1.	Ratio analysis of the consolidated financial statements	1
2.	Consolidated statements of financial position	6
3.	Consolidated statements of profit or loss	8
4.	Consolidated statements of comprehensive income	9
5.	Consolidated statements of changes in equity	10
6.	Consolidated statements of cash flow	11
7.	Notes to the consolidated financial statements	12
	Annex: Press Release

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

RATIO ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS

1. ANALYSIS OF FINANCIAL POSITION

a) Statement of financial position

The principal components of assets and liabilities at the end of each period are as follows:

	12-31-2024		12-31-2023		Variation
Assets	ThU.S.$		ThU.S.$		ThU.S.$
Current assets		4,274,618		4,175,578		99,040
Non-current assets		13,884,694		13,734,786		149,908
Total assets		18,159,312		17,910,364		1.39	%

	12-31-2024		12-31-2023		Variation
Liabilities	ThU.S.$		ThU.S.$		ThU.S.$
Current liabilities		1,362,950		2,071,742		(708,792	)
Non-current liabilities		8,072,647		7,829,593		243,054
Non–controlling interests		6,460		6,583		(123	)
Equity attributable to owners of parent company		8,717,255		8,002,446		714,809
Total net equity and liabilities		18,159,312		17,910,364		1.39	%

As of December 31, 2024, total assets increased MU.S.$ 249 compared to December 31, 2023, equivalent to a 1.39% variation. This variation was driven mainly by a balance increase in cash and cash equivalents, and in right of use assets, which were mainly offset by a balance decrease in assets held for sale, due to the sale of all the shares and social rights that Arauco had in Arauco Florestal Arapotí S.A., in Arauco Forest Brasil S.A., in Empreendimentos Florestais Santa Cruz Ltda. and in Florestal Vale do Corisco S.A., which are owners of assets mainly in the state of Paraná, Brazil.

In turn, total liabilities decreased by MU.S.$ 466 principally driven by decreases in financial liabilities, due to the payment of loans with financial institutions.

The main financial and operational indicators related to the statement of financial position as of the dates and for the periods indicated below are as follows:

Liquidity ratios	12-31-2024		12-31-2023
Current liquidity (current assets / current liabilities)		3.14		2.02
Acid ratio ((current assets-inventories, biological assets) / current liabilities)		1.84		1.16

Debt indicators	12-31-2024		12-31-2023
Debt to equity ratio (total liabilities / equity)		1.08		1.24
Short-term debt to total debt (current liabilities / total liabilities)		0.14		0.21
Long-term debt to total debt (non-current liabilities / total liabilities)		0.86		0.79

		12-31-2024				12-31-2023
Financial expenses coverage ratio (earnings before taxes + interest expense / interest expense)			2.63				(0.03	)

Activity ratio	12-31-2024		12-31-2023
Inventory turnover-time (cost of sales / inventories¹ + current biological assets¹)		2.62		2.66
Inventory turnover-time (excluding biological assets) (Cost of sales /inventories¹)		3.25		3.31
Inventory permanence-days ((inventories¹ + biological assets¹) /cost of sales)		137.60		135.50
Inventory permanence-days (excluding biological assets) (inventories¹ / cost of sales)		110.94		108.89

⁽¹⁾:

Annual average.

As of December 31, 2024, the short-term debt to total debt ratio represented 14% of total liabilities (21% as of December 31, 2023).

Our financial expenses coverage ratio increased from (0.33) to 2.63, mainly due to the profits before taxes generated for the year ended as of December 31, 2024, compared to the losses before taxes generated in the same period of 2023.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

b) Statement of profit or loss

Profit before income tax

We recorded a profit before income tax of approximately MU.S.$ 647 compared to a loss of approximately MU.S.$ 386 in the same period of 2023. The variation of MU.S.$ 1,033 is explained by the factors described in the following table:

Item	MU.S.$
Gross profit (loss)		644
Distribution and administrative expenses		57
Other income and expenses		292
Others		40
Net change in profit (loss) before income tax		1,033

The main indicators related to the accounts in our statements of profit or loss and the details of revenues and operation costs are as follows:

Revenues	12-31-2024 ThU.S.$		12-31-2023 ThU.S.$
Pulp		3,429,265		2,800,910
Wood		3,115,981		3,210,286
Other		900		623
Total revenues		6,546,146		6,011,819

Sales costs	12-31-2024 ThU.S.$		12-31-2023 ThU.S.$
Wood		963,721		1,068,662
Forestry work and other services		702,315		692,518
Depreciation and amortization		619,348		563,326
Other operating costs		2,348,765		2,419,589
Total sales costs		4,634,149		4,744,095

Profitability index	12-31-2024		12-31-2023
Profitability on equity (profit/average net equity)		5.69		(4.41	)
Profitability on assets (profit/average assets)		2.64		(2.04	)
Return on operating assets (operating result/average operating assets)		3.78		(0.30	)

Profitability ratios	12-31-2024			12-31-2023
Earnings (loss) per share (U.S.$)⁽¹⁾		3.9241			(2.9762	)
Net profit (loss) (ThU.S.$)⁽²⁾		476,281			(358,527	)
Gross profit (loss) (ThU.S.$)		1,911,997			1,267,724
Finance costs (ThU.S.$)		(397,923	)		(373,496	)

⁽¹⁾:

Average earnings per share refer to the profit to net equity to owners of the parent company.

⁽²⁾:

Includes non-controlling interest.

EBITDA	12-31-2024 ThU.S.$			12-31-2023 ThU.S.$
Net profit (loss)		476,281			(358,527	)
Finance costs		397,923			373,496
Finance income		(66,355	)		(131,666	)
Income tax expense		170,400			(27,293	)
EBIT		978,249			(143,990	)
Depreciation and amortization		685,951			661,068
EBITDA		1,664,200			517,078
Cost at fair value of the harvest		440,512			487,778
Gain from changes in fair value of biological assets		(159,021	)		(264,477	)
Gains (losses) on exchange difference on translation		12,400			194,739
Others (*)		56,018			90,858
Adjusted EBITDA		2,014,109			1,025,976

(*)

This net amount in 2023 corresponds mainly to forest fires, and in 2024 it corresponds mainly to adjustments of obsolescence and assets impairments.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

2. MAIN SOURCES OF FINANCING

Arauco’s financing needs are mainly covered through the capital markets, with bond issuances and credits obtained from banks and financial institutions serving as the main sources of financing.

For short-term borrowing, Arauco follows a liquidity policy which indicates the amounts and institutions from which it can borrow according to several conditions defined in the policy.

In the case of long-term debt, corporate bond issuances in the local market and also in the international markets are used as sources of new resources.

Another source of long-term financing corresponds to borrowings from banks and financial institutions around the world.

3. MARKET SITUATION

Turnover for the fourth quarter of 2024 increased by 14% compared to the same period of 2023. This was due to an increase in sales volumes, and a slight increase in the average sales price. On a cumulative annual basis, turnover of 2024 was 22% higher than 2023, mainly due to higher sales volumes, especially in short fiber, given that during 2024, Line 3 of the Arauco mill was able to operate at full capacity.

Overall, the fourth quarter was complex due to lower prices in certain markets, and a little more challenging demand. Worldwide inventories of short fiber increased slightly in October and then decreased considerably in November and December, while long fiber inventories decreased throughout the fourth quarter.

In China, the market remained stable during the fourth quarter, with paper manufacturers buying pulp prudently to cover their needs. Mid-quarter, the bankruptcy of a major pulp and paper producer in the country was announced, causing some of its mills to cease production. As a consequence, paper manufacturers increased the operational rates of their mills, replacing the production of the bankrupt producer, and there was a decrease in the local supply of pulp, thus driving the demand for imported pulp. The Tissue industry remained stable during the fourth quarter. As regards pulp prices, in long fiber the price increased early in the quarter and then remained stable; on the other hand, the short fiber price remained stable throughout the quarter.

In Europe, during the fourth quarter, the paper market showed an improvement during the fourth quarter driven mainly by the increase in paper mills margins due to the decrease in the price pulp. However, the visibility of final product orders for the coming months remains limited, which has led to pulp supply remaining at minimum levels. The tissue industry remained stable during the fourth quarter, regularly receiving end-product orders and improving margins. However, some small tissue producers were affected by increased product imports from other markets, such as China and Brazil. Throughout the fourth quarter, pulp stock levels in the ports gradually decreased. In turn, the price of short fiber decreased throughout the entire quarter, stabilizing towards the end of the year.

The textile pulp market remained fairly stable at the beginning of the fourth quarter. However, it subsequently showed greater caution, anticipating the low seasonality of December 2024 and January 2025. The viscose market remained with low inventories, and with mills operating rates of 85%. However, late in the quarter, viscose prices began to decline. In turn, textile pulp prices increased at the beginning of the third quarter of 2024, and then remained stable for the rest of the period.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Production in the fourth quarter of 2024 was affected by scheduled and unscheduled mill shutdowns. During this period, the Esperanza mill in Argentina conducted an extended scheduled maintenance shutdown, that lasted for the entire month of October and a part of November. The Valdivia mill also had a scheduled maintenance shutdown. As to unplanned events, in December the Valdivia mill halted production due to a workers' strike, which remained in effect until the first days of January 2025.

Wood Products Business

Sawn timber

For sawn timber, this year, sales were lower than sales in 2023, respect to the accumulated figure of the year and the fourth quarter of each year. This was strongly affected by the closure of two sawmills in Chile, due to supply issues. The first sawmill, Aserradero Horcones II was closed at the end of 2023, and the second sawmill, Aserradero El Colorado was closed the second quarter of 2024, thus affecting sales since the third quarter of this year. These two sawmills produced approximately 25% of the total sawn timber.

The lower supply has allowed Arauco to increase prices in recent months. However, markets continue with slow demand, showing the effects of lower economic/construction activity.

In Remanufacturing in the U.S., during the fourth quarter of 2024, the logistical problems Arauco had in reaching its customers in the third quarter, diminished. This allowed positive billing performance both at origin and destination. However, the excess inventory that reached customers may slightly affect Arauco reception of new orders in early 2025. Furthermore, Arauco face uncertainty due to potential import tariffs in the United States on both MDF moldings and in remanufacturing.

Plywood

The fourth quarter of 2024 displayed better sales than the same quarter of 2023, and a better year respect to the accumulated figure of the year.

The markets remain stable and the low supply available from several competitors has helped Arauco maintain a good position in sales and improved prices.

Panels (MDF, PB, Melamine)

During 2024, there was a drop in sales compared to the same period of 2023. It was a difficult start to 2024 in Brazil, Argentina and in general in the rest of America, with a global excess supply of MDF, and low activity. Demand and prices began to recover in the third quarter, and in the fourth quarter sales were slightly higher than those of the same quarter of 2023.

Supply was affected by logistical restrictions, mainly from Brazil, which contributed to a more active demand in the last quarters of 2024.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

4. ANALYSIS OF CASH FLOW

The main components of cash flow in each period are as follows:

	12-31-2024 ThU.S.$			12-31-2023 ThU.S.$
Positive (negative) Cash flow
Net cash flows from (used in) operating activities		1,181,317			740,427

Cash flows from (used in) financing activities:		(305,948	)		645,667
Share issue		300,519			-
Obtaining and paying borrowings and bonds		(437,373	)		1,008,451
Payments of lease liabilities		(82,059	)		(73,806	)
Dividends paid		(94,637	)		(282,728	)
Others		7,602			(6,250	)
Cash flows from (used in) investment activities:		(328,973	)		(1,333,124	)
Purchase and sale of property, plant and equipment		(801,184	)		(832,611	)
Purchase and sale of biological assets		(378,400	)		(405,809	)
Purchase and sale of intangible assets		(6,137	)		(6,401	)
Additions (disposals), investments in subsidiaries, joint ventures and associates		838,540			(38,750	)
Dividends received		6,982			4,265
Others		11,226			(53,818	)
Positive (negative) net cash flow		546,396			52,970

Our cash flow from operating activities increased to MU.S.$ 1,181 for the current period, presenting a positive variation of MU.S.$ 441 compared to the previous period (positive balance of MU.S.$ 740 for the same period in 2023), resulting mainly from higher collections of accounts receivable.

The cash flow from financing activities showed a negative balance of MU.S.$ 306 for the current period, presenting a negative variation of MU.S.$ 952 compared to the previous period (positive balance of MU.S.$ 646 for the same period in 2023). This was mainly due to an increase of payments of borrowings and a decrease in borrowings received, offset by an increase in capital contributions received and lower dividends payments in 2024.

Regarding the cash flow from investment activities, the negative balance of MU.S.$ 329 of the current period, presenting a positive variation of MU.S.$ 1,004 compared to the previous period (negative balance of MU.S.$ 1,333 for the same period of 2023), is mainly due to the sale of Brazilian entities and a higher collection for the sale of property, plants and equipment, which was partially offset by the payments for the purchase of all the shares and social rights of four companies that are joint operations in Uruguay (50%).

5. MARKET RISK ANALYSIS

In respect of the economic risks resulting from interest rate variations, the Company maintained, as of December 31, 2024, a ratio of fixed rate debt to total consolidated debt of approximately 89.6%, which we believe is consistent with industry standards.

Regarding variations in prices of pulp and forestry products, the Company does not participate in futures trading, which allows it to maintain one of the lowest cost structures in the industry and have these risks bounded.

The Company and most of its subsidiaries maintain their accounting records and prepare their financial statements in U.S. dollars. Most of their revenues (and accordingly accounts receivable) are denominated in U.S. dollars, and most financial liabilities are either denominated in U.S. dollars or are covered by exchange rate swaps. As a result, exposure to exchange rate fluctuations has decreased significantly.

The consolidated financial statements as of December 31, 2024 include a detailed analysis of the risks associated with the business of Arauco (see Note 23).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

			12-31-2024		12-31-2023
	Note		ThU.S.$		ThU.S.$

Assets
Current assets
Cash and cash equivalents		5-23		1,071,560		570,008
Other current financial assets		23		25,960		45,604
Other current non-financial assets		25		261,092		240,254
Trade and other current receivables		23		1,054,707		997,902
Accounts receivable from related companies		13-23		10,159		2,616
Current inventories		4		1,456,260		1,399,846
Current biological assets		20		315,500		370,957
Current tax assets		6		75,613		119,031
Total current assets other than assets or disposal groups classified as held for sale				4,270,851		3,746,218
Non-current assets or disposal groups classified as held for sale		22		3,767		429,360
Total current assets				4,274,618		4,175,578
Non-current assets
Other non-current financial assets		23		16,747		33,512
Other non-current non-financial assets		25		85,036		99,174
Non-current receivables		23		65,735		108,501
Investments accounted for using equity method		15-16		406,611		423,611
Intangible assets other than goodwill		19		55,980		66,431
Goodwill		17		51,325		55,891
Property, plant and equipment		7		9,610,071		9,607,116
Right of use assets		8		771,886		600,361
Non-current biological assets		20		2,747,894		2,651,622
Deferred tax assets		6		73,409		88,567
Total non-current assets				13,884,694		13,734,786
Total assets				18,159,312		17,910,364

The accompanying notes are an integral part of these consolidated financial statements.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)

			12-31-2024			12-31-2023
	Note		ThU.S.$			ThU.S.$

Equity and liabilities
Liabilities
Current liabilities
Other current financial liabilities		23		348,905			1,082,525
Current lease liabilities		8-23		55,851			47,242
Trade and other current payables		23		745,971			760,455
Accounts payable to related companies		13-23		10,563			6,958
Other short-term provisions		18		1,837			3,905
Current tax liabilities		6		27,565			13,318
Current provisions for employee benefits		10		6,669			7,863
Other current non-financial liabilities		25		165,589			50,148
Total current liabilities other than liabilities included in disposal groups classified as held for sale				1,362,950			1,972,414
Liabilities included in disposal groups classified as held for sale		22		-			99,328
Total current liabilities				1,362,950			2,071,742
Non-current liabilities
Other non-current financial liabilities		13-23		5,721,712			5,521,568
Non-current lease liabilities		8-23		672,139			512,140
Non-current payables				35,310			50,577
Non-current accounts payable to related companies		13-23		26,207			22,981
Other long-term provisions		18		33,121			28,651
Deferred tax liabilities		6		1,469,512			1,543,624
Non-current provisions for employee benefits		10		77,634			86,462
Other non-current non-financial liabilities		25		37,012			63,590
Total non-current liabilities				8,072,647			7,829,593
Total liabilities				9,435,597			9,901,335
Equity
Issued capital		3		1,103,618			803,618
Retained earnings				8,312,384			8,034,963
Other reserves				(698,747	)		(836,135	)
Equity attributable to owners of parent company				8,717,255			8,002,446
Non-controlling interests				6,460			6,583
Total equity				8,723,715			8,009,029
Total equity and liabilities				18,159,312			17,910,364

The accompanying notes are an integral part of these consolidated financial statements.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

			January – December
			2024			2023
	Note		ThU.S.$			ThU.S.$
Statements of profit or loss

Revenue		9		6,546,146			6,011,819
Cost of sales		3		(4,634,149	)		(4,744,095	)
Gross profit (loss)				1,911,997			1,267,724
Other income		3		597,061			573,017
Distribution costs		3		(695,377	)		(693,039	)
Administrative expenses		3		(565,027	)		(624,326	)
Other expense by function		3		(212,213	)		(480,336	)
Profit (loss) from operating activities				1,036,441			43,040
Finance income		3		66,355			131,666
Finance costs		3		(397,923	)		(373,496	)
Share of profit (loss) of associates and joint ventures accounted for using equity method		3-15		(45,792	)		7,709
Gains (losses) on exchange differences on translation				(12,400	)		(194,739	)
Profit (loss) before income tax				646,681			(385,820	)
Income tax (expense) benefit		6		(170,400	)		27,293
Net profit (loss)				476,281			(358,527	)
Net profit (loss) attributable to
Net profit (loss) attributable to owners of parent company				476,470			(358,560	)
Net profit (loss) attributable to non-controlling interests				(189	)		33
Net profit (loss)				476,281			(358,527	)

Basic and diluted earnings (loss) per share (in U.S.$ per share)
Basic and diluted earnings (loss) per share from continuing operations		26		3.9240555			(2.9762352	)
Basic and diluted earnings (loss) per share				3.9240555			(2.9762352	)

The accompanying notes are an integral part of these consolidated financial statements.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

			January – December
			2024			2023
	Note		ThU.S.$			ThU.S.$

Net profit (loss)				476,281			(358,527	)
Components of other comprehensive income that will not be reclassified to profit or loss before tax:
Remeasurements of defined benefit plans
Other comprehensive income before tax gains losses on remeasurements of defined benefit plans		10		(766	)		(2,726	)
Other comprehensive income that will not be reclassified to profit or loss before tax				(766	)		(2,726	)
Components of other comprehensive income that will be reclassified to profit or loss before tax:
Exchange differences on translation
Gains (losses) on exchange differences on translation, before tax		11		259,895			121,470
Other comprehensive income before tax exchange differences on translation				259,895			121,470
Cash flow hedges
Gains (losses) on cash flow hedges, before tax		23		27,762			(72,816	)
Reclassification adjustments on cash flow hedges, before tax		23		(6,747	)		(1,634	)
Other comprehensive income before tax cash flow hedges				21,015			(74,450	)
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax				10,911			308
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax				10,911			308
Other Comprehensive income that will be reclassified to profit or loss before tax				291,821			47,328
Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss before tax
Income tax relating to remeasurements of defined benefit plans of other comprehensive income		6		207			736
Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss before tax				207			736
Income tax relating to components of other comprehensive income that will be reclassified to profit or loss before tax
Income tax relating to exchange differences on translation of other comprehensive income		6		(135,171	)		135,171
Income tax relating to cash flow hedges of other comprehensive income		6-23		(6,075	)		19,610
Income tax relating to share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss				(2,450	)		(218	)
Income tax relating to components of other comprehensive income that will be reclassified to profit or loss				(143,696	)		154,563
Other comprehensive income (loss)				147,696			199,901
Total comprehensive income (loss)				623,847			(158,626	)

Comprehensive income (loss) attributable to
Comprehensive income (loss), attributable to owners of parent company				624,409			(158,848	)
Comprehensive income (loss), attributable to non-controlling interests				(562	)		222
Total comprehensive income (loss)				623,847			(158,626	)

The accompanying notes are an integral part of these consolidated financial statements.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

12-31-2024	Issued capital ThU.S.$		Reserve of exchange differences on translation ThU.S.$			Reserve of cash flow hedges ThU.S.$			Reserve of actuarial losses on defined benefit plans ThU.S.$			Other reserves ThU.S.$			Total other reserves ThU.S.$			Retained earnings ThU.S.$			Equity attributable to owners of parent			Non- controlling interests ThU.S.$			Total equity ThU.S.$
Opening balance at 01-01-2024		803,618		(840,877	)		(64,952	)		(37,364	)		107,058			(836,135	)		8,034,963			8,002,446			6,583			8,009,029
Changes in Equity:
Comprehensive income
Net profit		-		-			-			-			-			-			476,470			476,470			(189	)		476,281
Other comprehensive income, net of tax		-		125,097			14,940			(559	)		8,461			147,939			-			147,939			(373	)		147,566
Comprehensive income		-		125,097			14,940			(559	)		8,461			147,939			476,470			624,409			(562	)		623,847
Equity issue		300,000		-			-			-			-			-			-			300,000			664			300,664
Dividends		-		-			-			-			-			-			(206,684	)		(206,684	)		(225	)		(206,909	)
Increase (decrease) through transfers and other changes equity		-		-			-			-			(10,551	)		(10,551	)		10,551			-			-			-
Increase (decrease) due to changes in the participation of subsidiaries that do not involve loss of control		-		-			-			-			-			-			(2,916	)		(2,916	)		-			(2,916	)
Changes in equity		300,000		125,097			14,940			(559	)		(2,090	)		137,388			277,421			714,809			(123	)		714,686
Closing balance at 12-31-2024		1,103,618		(715,780	)		(50,012	)		(37,923	)		104,968			(698,747	)		8,312,384			8,717,255			6,460			8,723,715

12-31-2023	Issued capital ThU.S.$		Reserve of exchange differences on translation ThU.S.$			Reserve of cash flow hedges ThU.S.$			Reserve of actuarial losses on defined benefit plans ThU.S.$			Other reserves ThU.S.$		Total other reserves ThU.S.$			Retained earnings ThU.S.$			Equity attributable to owners of parent ThU.S.$			Non- controlling interests ThU.S.$			Total equity ThU.S.$
Opening balance at 01-01-2023		803,618		(1,097,329	)		(10,112	)		(35,374	)		93,091		(1,049,724	)		8,500,901			8,254,795			5,189			8,259,984
Changes in Equity:
Comprehensive income
Net profit		-		-			-			-			-		-			(358,560	)		(358,560	)		33			(358,527	)
Other comprehensive income, net of tax		-		256,452			(54,840	)		(1,990	)		90		199,712			-			199,712			189			199,901
Comprehensive income		-		256,452			(54,840	)		(1,990	)		90		199,712			(358,560	)		(158,848	)		222			(158,626	)
Equity issue		-		-			-			-			-		-			-			-			1,376			1,376
Dividends		-		-			-			-			-		-			(92,719	)		(92,719	)		(204	)		(92,923	)
Increase (decrease) through transfers and other changes equity		-		-			-			-			13,877		13,877			(13,877	)		-			-			-
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control		-		-			-			-			-		-			(782	)		(782	)		-			(782	)
Changes in equity		-		256,452			(54,840	)		(1,990	)		13,967		213,589			(465,938	)		(252,349	)		1,394			(250,955	)
Closing balance at 12-31-2023		803,618		(840,877	)		(64,952	)		(37,364	)		107,058		(836,135	)		8,034,963			8,002,446			6,583			8,009,029

The accompanying notes are an integral part of these consolidated financial statements.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

CONSOLIDATED STATEMENTS OF CASH FLOWS

	January – December
	2024			2023
	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		6,854,709			6,211,313
Receipts from rents and subsequent sales of such assets		23,075			16,509
Other cash receipts from operating activities		840,543			702,283
Classes of cash payments
Payments to suppliers for goods and services		(5,238,597	)		(5,049,907	)
Payments to and on behalf of employees		(626,122	)		(736,789	)
Payments to manufacture or acquire assets held for rental to others and subsequently held for sale		(2,638	)		(10,848	)
Other cash payments from operating activities		(308,264	)		(174,824	)
Interest paid		(362,234	)		(328,317	)
Interest received		65,114			137,480
Income taxes (paid) refunded		(69,848	)		(28,463	)
Other inflows (outflows) of cash, net		5,579			1,990
Net cash flow from (used in) operating activities		1,081,317			740,427

Cash flows from (used in) investing activities

Cash flow from loss of control of subsidiaries or other businesses		958,273			-
Cash flow used in obtaining control of subsidiaries or other businesses		(72,037	)		-
Other cash receipts from sale equity or debt instruments from other entities		7,109			-
Other cash payments to acquire equity or debt instruments from other entities		(26,526	)		(27,528	)
Other cash payments to acquire interest in joint ventures		(28,279	)		(11,222	)
Loans to related entities		(5,500	)		-
Proceeds from sales of property, plant and equipment		37,660			11,859
Purchase of property, plant and equipment		(838,844	)		(844,470	)
Proceeds from sales of intangible assets		-			281
Purchase of intangible assets		(6,137	)		(6,682	)
Proceeds from other long-term assets		5,512			6,088
Purchase of other long-term assets		(383,912	)		(411,897	)
Dividends received		6,982			4,265
Other inflows (outflows) of cash, net		16,726			(53,818	)
Cash flows from (used in) investing activities		(328,973	)		(1,333,124	)

Cash flows from (used in) financing activities

Cash flow used in the purchase of non-controlling interests		(3,600	)		-
Proceeds from issuing shares		300,519			-
Total proceeds from borrowings		1,695,525			2,126,607
Proceeds from long-term borrowings		481,269			1,160,649
Proceeds from short-term borrowings		1,214,256			965,958
Repayments of borrowings		(2,132,898	)		(1,118,156	)
Payments of lease liabilities		(82,059	)		(73,806	)
Dividends paid		(94,637	)		(282,728	)
Other inflows (outflows) of cash, net		11,202			(6,250	)
Cash flows from (used in) financing activities		(305,948	)		645,667
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes		546,396			52,970
Effect of exchange rate changes on cash and cash equivalents		(44,844	)		(150,169	)
Net increase (decrease) of cash and cash equivalents		501,552			(97,199	)
Cash and cash equivalents, at the beginning of the period		570,008			667,207
Cash and cash equivalents, at the end of the period		1,071,560			570,008

The accompanying notes are an integral part of these consolidated financial statements.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTES TO the consolidated financial statements as of December 31, 2024 and 2023

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^thfloor, 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, 2024, 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 is 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, 2024 and 2023.

Consolidated statements of profit or loss for the years ended December 31, 2024 and 2023.

Consolidated statements of comprehensive income for the years ended as of December 31, 2024 and 2023.

Consolidated statements of changes in equity for the years ended December 31, 2024 and 2023.

Consolidated statements of cash flows for the years ended as of December 31, 2024 and 2023.

Explanatory disclosures (notes).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Period covered by the consolidated financial statements

As of December 31, 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 the Extraordinary Meeting No. 730 on February 26, 2025.

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

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 the majority 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.$).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Summary of significant accounting policies

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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 are the Executive Vice-president and the Chief Executive Officer who are the highest authorities for making decisions and are 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:

Pulp

Wood products

Refer to Note 24 for detailed financial information by reportable segment.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

(ii)

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.

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.

Financial instruments

Financial assets

Initial classification

Arauco classifies its financial assets into the following categories: fair value through profit or loss and amortized cost.

Arauco does not have financial assets at fair value through other comprehensive income.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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 in results. 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).

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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 there are no instruments 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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

-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.

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 from 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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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 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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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 new forestry plantations made during the current year is made at cost, which corresponds to the fair value at that date. After twelve months, the valuation methodology used is that explained in the preceding paragraph.

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

“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.

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.

In a board meeting 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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Earning 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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Recent accounting pronouncements

a) Standards, interpretations and amendments that are mandatory for the first time for annual periods beginning on January 1, 2024:

Amendments and improvements	Content	Mandatory application for annual periods beginning on or after
IAS 1	Non-current liabilities with covenants	January 1, 2024
	These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions.

IFRS 16	Leases on sale and leaseback	January 1, 2024
	These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.

IAS 7 and IFRS 7	Supplier finance arrangements	January 1, 2024
	These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and exposure to liquidity risk.

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:

Amendments and improvements	Content	Mandatory application for annual periods beginning on or after
IAS 21	Lack of Exchangeability	January 1, 2025
	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.

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.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTE 2. ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES

Changes to accounting policies

As of December 31, 2024, there had not been significant changes in the accounting policies with respect to the 2023 financial year.

Changes to accounting estimates

As of December 31, 2024, there had been no changes in the methodologies for calculating the accounting estimates with respect to the 2023 financial year.

NOTE 3. DISCLOSURE OF OTHER INFORMATION

Disclosure of information on issued capital

On October 17, 2024 a capital increase of ThU.S.$ 300,000 was subscribed, equivalent to 4,567,774 shares, which were paid on December 17,2024.

As of December 31, 2024 and 2023, the shareholders composition according to the amount of shares owned was as follows:

	12-31-2024					12-31-2023
Shareholders	Shares		%			Shares		%
Empresas Copec S.A.		125,042,019		99.99991603	%		120,474,249		99.99991616	%
AntarChile S.A.		105		0.00008397	%		101		0.00008384	%
		125,042,124		100.00000000	%		120,474,350		100.00000000	%

At the date of these consolidated financial statements the share capital of Arauco was ThU.S.$ 1,103,618.

	12-31-2024		12-31-2023
Description of shares by type of capital in ordinary shares	100% of Capital corresponds to ordinary shares
Number of authorized shares by type of capital in ordinary Shares		125,042,124		120,474,350
Nominal value of shares by type of capital in ordinary shares		U.S.$ 8.8260 per share		U.S.$ 6.6704 per share
Amount of capital in shares by type of ordinary shares that constitute capital		ThU.S.$ 1,103,618		ThU.S.$ 803,618
Number of shares issued and fully paid by type of capital in ordinary shares		125,042,124		120,474,350

Dividends paid

On December 10, 2024, a provisional dividend of ThU.S.$ 94,397 was paid with a charge to the retained earnings from the profits of the year 2024, which represented 15% of the distributable net profit at the end of September 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 of ThU.S.$ 183,971.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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. As of December 31, 2023 there was no minimum dividend provision for the 2023 losses.

See Note 26 for details.

In the consolidated statement of cash flows, an amount of ThU.S.$ 94,637 for the year ended December 31, 2024 (ThU.S.$ 282,728 for the year ended December 31, 2023) is presented within the Dividends paid, of which ThU.S.$ 94,397 (ThU.S.$ 279,622 for the year ended December 31, 2023) correspond to the amount original in U.S. dollars of the dividend payment to owners of the parent company.

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	120,474,350
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	120,474,350
Dividend per shares	U.S.$ 2.321007

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Other reserves

This mainly corresponds to the share of legal reserves and other comprehensive income of investments in associates and joint agreements.

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 year ended December 31, 2024 and 2023 are as follows:

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Classes of Other Income
Total Other Income		597,061			573,017
Gain from changes in fair value of biological assets (Note 20) (1)		159,021			264,477
Net income from insurance compensation		17,336			204,966
Revenue from export promotion		1,099			943
Lease income		4,960			10,158
Gain on sales of assets		21,040			27,755
Rights of way		5			488
Recovery of tax credits		1,622			7,102
Compensations received		43			7,285
Gain on sales of subsidiaries and associates		354,067			-
Reversal of impairment of property, plants and equipment		7,248			6,886
Reimbursement provisions (legal and others)		3,680			12,322
Other operating income		26,940			30,635

Classes of Other Expenses by function
Total Other Expenses by function		(212,213	)		(480,336	)
Depreciation for leased assets		(2,814	)		(1,494	)
Provision legal expenses		(12,483	)		(14,398	)
Impairment provision for property, plant and equipment, provision for inventory obsolescence, withdrawals and others		(42,583	)		(110,559	)
Operating expenses related to restructuring or from plants stoppage or closed		(44,181	)		(236,525	)
Expenses related to projects		(11,399	)		(13,975	)
Loss by leasses		(747	)		-
Loss of asset sales		(11,497	)		(12,389	)
Loss and repair of assets		(3,149	)		(11,076	)
Loss of forest due to fires		(24,918	)		(25,101	)
Other Taxes		(34,691	)		(20,977	)
Research and development expenses		(1,605	)		(3,939	)
Fines, readjustments and interest		(695	)		(1,146	)
Loss on sale of associates		(20	)		-
Loss of tax credits		(2,195	)		(4,287	)
Other expenses		(19,236	)		(24,470	)

Classes of Finance Income
Total Finance Income		66,355			131,666
Finance income by mutual funds - term deposits		44,881			113,522
Finance income resulting from derivatives		3			8
Other finance income		21,471			18,136

Classes of Finance Costs
Total Finance Costs		(397,923	)		(373,496	)
Interest expense, Bank borrowings		(85,860	)		(78,753	)
Interest expense, Bonds		(204,570	)		(214,079	)
Interest expense resulting from derivatives		(41,066	)		(26,800	)
Interest expense for right-of-use (1)		(29,991	)		(19,995	)
Other finance costs		(36,436	)		(33,869	)

Share of profit (loss) of associates and joint ventures accounted for using equity method
Total		(45,792	)		7,709
Investments in associates (2)		(22,650	)		3,990
Investments in joint ventures		(23,142	)		3,719

(1)

In 2024, includes the effect of changes in fair value of plantations and interest expense for the Brazilian companies right-of-use assets 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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

The analysis of expenses by nature contained in these consolidated financial statements is presented below:

	January – December
	2024		2023
Cost of sales	ThU.S.$		ThU.S.$
Timber		963,721		1,068,662
Forestry labor costs and other services		702,315		692,518
Depreciation and amortization		584,343		535,244
Depreciation for right of use		35,005		28,082
Maintenance costs		355,733		355,389
Chemical costs		662,732		649,413
Sawmill costs		122,927		122,748
Other raw materials		236,098		285,828
Other indirect costs		222,550		233,903
Energy and fuel		276,517		275,732
Cost of electricity		50,587		65,191
Staff expenses		421,621		431,385
Total		4,634,149		4,744,095

Total amount is comprised of the cost of inventory sales for ThU.S.$4,522,430 as of December 31, 2024 (ThU.S.$ 4,616,212 as of December 31, 2023) and the cost of rendering services for ThU.S.$111,719 as of December 31, 2024 (ThU.S.$ 127,883 as of December 31, 2023).

	January – December
	2024		2023
Distribution costs	ThU.S.$		ThU.S.$
Selling costs		35,502		41,966
Commissions		17,070		15,400
Insurance		6,584		7,186
Provision for doubtful accounts		1,098		3,094
Other selling costs		10,750		16,286
Shipping and freight costs		659,875		651,073
Port services		70,717		61,802
Freights		530,334		528,218
Depreciation for right of use		1,068		1,184
Shipping internment, warehousing, stowage, customs and other costs		57,756		59,869
Total		695,377		693,039

	January – December
	2024		2023
Administrative expenses	ThU.S.$		ThU.S.$
Wages and salaries		219,046		245,822
Marketing, advertising, promotion and publications expenses		14,516		14,542
Insurances		49,359		54,173
Depreciation and amortization		43,716		43,075
Depreciation for right of use		7,110		7,361
Computer services		29,836		37,859
Lease of offices, other property and vehicles		7,323		7,854
Donations, contributions, scholarships		9,010		10,983
Fees (legal and technical advisors)		35,817		35,831
Property taxes, city permits and rights		21,225		32,639
Cleaning services, security services and transportation		23,329		28,381
Third-party variable services (manoeuvres, logistics)		41,030		38,537
Basic services (electricity, telephone, water)		6,768		7,323
Maintenance and repair		5,932		6,933
Seminars, courses, training materials		3,117		2,637
Travels, clothing and safety equipment, environmental expenses, audits and others		47,893		50,376
Total		565,027		624,326

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTE 4. INVENTORIES

	12-31-2024		12-31-2023
Components of inventory	ThU.S.$		ThU.S.$
Raw materials		166,695		141,554
Production supplies		209,201		202,924
Work in progress		82,565		84,644
Finished godos		762,086		721,267
Spare parts		235,713		249,457
Total inventories		1,456,260		1,399,846

In order to have inventories recorded at net realizable value, inventories are subject to evaluations and obsolescence provision recognition as of December 31, 2024, a net increase of inventories was recognized associated with a lower provision of ThU.S.$ 3,728 (ThU.S.$ 33,361 as of December 31, 2023). As of December 31, 2024, the amount of provision arises to the sum of ThU.S.$ 107,003 (ThU.S.$ 110,731 as of December 31, 2023).

As of December 31, 2024, there were inventory write-offs of ThU.S.$ 2,200 (ThU.S.$ 3,614 as of December 31, 2023) which are presented in the consolidated statements of profit or loss within cost of sales.

The inventory obsolescence provision is calculated based on the sales conditions of products and age of inventory (inventory turnover).

As of the date of these consolidated financial statements, no inventories were pledged as security.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

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.

	12-31-2024		12-31-2023
Components of Cash and Cash Equivalents	ThU.S.$		ThU.S.$
Cash on hand		47		60
Balances with Banks		642,064		337,973
Short-term deposits		359,150		99,167
Mutual funds		70,299		132,808
Total		1,071,560		570,008

The risk classification of the Company’s mutual funds as of December 31, 2024 and December 31, 2023 is shown below.

	12-31-2024 ThU.S.$		12-31-2023 ThU.S.$
AAAfm		62,524		83,712
No classification		7,775		49,096
Total Mutual Funds		70,299		132,808

Changes in financial liabilities

		12-31-2024
		Bank borrowings			Hedging liabilities			Bonds and promissory notes			Other financial liabilities, Total
		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance January 1			1,499,051			108,004			4,997,038			6,604,093
Cash flows	(+) Borrowings obtained		1,303,663			-			391,862			1,695,525
	(-) Borrowings paid		(1,582,810	)		(6,748	)		(543,340	)		(2,132,898	)
	(+/-) Commissions (discount) of issue		-			-			11,163			11,163
	(-) Interest paid		(87,699	)		(38,969	)		(206,200	)		(332,868	)
(+) Accrued interest			86,324			40,414			197,941			324,679
(+/-) Exchange rate difference			(24,083	)		-			(135,388	)		(159,471	)
(+/-) Changes in fair value			-			99,217			-			99,217
(+/-) Other movements (*)			(43,423	)		-			4,600			(38,823	)
Closing balance			1,151,023			201,918			4,717,676			6,070,617

(*):

This line includes mainly the exchange difference on translation mainly from Brazilian companies.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

		12-31-2023
		Bank borrowings			Hedging liabilities			Bonds and promissory notes			Other financial liabilities, Total
		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance January 1			940,677			76,686			4,513,459			5,530,822
Cash flows	(+) Borrowings obtained		1,594,613			-			531,994			2,126,607
	(-) Borrowings paid		(1,070,319	)		(1,633	)		(46,204	)		(1,118,156	)
	(+/-) Commissions (discounts) of issue (*)		(473	)		-			(5,776	)		(6,249	)
	(-) Interest paid		(71,995	)		(33,711	)		(202,497	)		(308,203	)
(+) Accrued interest			78,703			34,190			205,238			318,131
(+/-) Exchange rate difference			15,395			-			(2,899	)		12,496
(+) Business combination			395			-			-			395
(+/-) Changes in fair value			-			32,472			-			32,472
(+/-) Other movements			12,055			-			3,723			15,778
Closing balance			1,499,051			108,004			4,997,038			6,604,093

(*)

It includes commissions for bank borrowings.

		Lease liabilities
		12-31-2024			12-31-2023
		ThU.S.$			ThU.S.$
Opening balance January 1			559,382			264,224
Cash flows	(-) Borrowings paid		(82,059	)		(73,806	)
	(-) Interest paid		(29,366	)		(20,114	)
(+) Accrued interest			29,490			20,445
(+/-) Inflation adjustment			(51	)		(404	)
(+/-) Exchange rate difference			(5,071	)		(521	)
(+) Business combination			-			134
(-) Decrease through transfer to liabilities included in disposal groups classified as held for sale			-			(18,795	)
(+) Increase due to new leases liabilities			361,421			376,259
(+/-) Other movements (*)			(105,756	)		11,960
Closing balance			727,990			559,382

(*):

This line includes mainly the exchange difference on translation mainly from Brazilian companies.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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:

	12-31-2024			12-31-2023
Deferred tax assets	ThU.S.$			ThU.S.$
Deferred tax assets relating to liabilities provisions		11,125			14,008
Deferred tax assets relating to investments (*)		-			78,061
Deferred tax assets relating to post-employment benefits		23,063			25,726
Deferred tax assets relating to property, plant and equipment		89,655			80,410
Deferred tax assets relating to impairment provision		5,672			12,319
Deferred tax assets relating to financial instruments		87,134			82,535
Deferred tax assets relating to tax loss carry forward		235,828			233,468
Deferred tax assets relating to biological assets		4,806			-
Deferred tax assets relating to inventories		27,374			25,011
Deferred tax assets relating to provisions for income		35,889			16,807
Deferred tax assets relating to allowance for doubtful accounts		3,160			2,384
Deferred tax assets relating to intangible revaluation		215			35
Deferred tax assets relating to other deductible temporary differences		73,791			39,065
Total deferred tax assets		597,712			609,829
Offsetting presentation		(524,303	)		(521,262	)
Net effect		73,409			88,567

(*)	See explanatory text in note 22

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.$ 928,974 (ThU.S.$ 956,949 as of December 31, 2023).

In addition, as of the closing date of these consolidated financial statements, there are ThU.S.$ 129,300 (ThU.S.$ 251,396 as of December 31, 2023) of non-recoverable tax losses mainly from subsidiaries in the United States and Netherlands. 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:

	12-31-2024			12-31-2023
Deferred tax liabilities	ThU.S.$			ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,374,164			1,415,101
Deferred tax liabilities relating to financial instruments		18,887			26,766
Deferred tax liabilities relating to biological assets		469,770			475,592
Deferred tax liabilities relating to inventory		56,101			57,619
Deferred tax liabilities relating to prepaid expenses		34,889			36,837
Deferred tax liabilities relating to intangible		6,089			10,420
Deferred tax liabilities relating to other taxable temporary differences		33,915			42,551
Total deferred tax liabilities		1,993,815			2,064,886
Offsetting presentation		(524,303	)		(521,262	)
Net effect		1,469,512			1,543,624

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

The effect of this period in current and deferred tax liabilities related to financial hedging instruments corresponds to a debit of ThU.S.$ 6,075 as of December 31, 2024 (credit of ThU.S.$ 19,610 as of December 31, 2023), which is presented net in reserves for cash flow hedges in the consolidated statement of changes in equity.

Reconciliation of deferred tax assets and liabilities

	Opening		Deferred tax			Deferred tax of ítems			Increase (decrease)		Increase (decrease)			Closing
	balance 01-01-2024		income (expenses)			charged to equity			business combination		net exchange differences			balance 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		14,008		(1,857	)		-			-		(1,026	)		11,125
Deferred tax assets relating to investments		78,061		57,110			(135,171	)		-		-			-
Deferred tax assets relating to post-employment benefits		25,726		(2,866	)		207			-		(4	)		23,063
Deferred tax assets relating to property, plant and equipment		80,410		10,928			-			644		(2,327	)		89,655
Deferred tax assets relating to impairment provision		12,319		(4,408	)		-			-		(2,239	)		5,672
Deferred tax assets relating to financial instruments		82,535		14,618			(7,337	)		-		(2,682	)		87,134
Deferred tax assets relating to tax loss carry forward		233,468		7,183			-			-		(4,823	)		235,828
Deferred tax assets relating to biological assets		-		4,806			-					-			4,806
Deferred tax assets relating to inventories		25,011		2,634			-			-		(271	)		27,374
Deferred tax assets relating to provisions for income		16,807		19,076			-			-		6			35,889
Deferred tax assets relating to allowance for doubtful accounts		2,384		791			-			-		(15	)		3,160
Deferred tax assets relating to intangible revaluation		35		180			-			-		-			215
Deferred tax assets relating to other deductible temporary differences		39,065		37,220			-			-		(2,494	)		73,791
Total deferred tax assets		609,829		145,415			(142,301	)		644		(15,875	)		597,712

	Opening		Deferred tax			Deferred tax of items			Increase (decrease)		Increase (decrease)			Closing
	balance 01-01-2024		(income) expenses			charged to equity			business combination		net exchange differences			balance 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		1,415,101		(29,618	)		-			-		(11,319	)		1,374,164
Deferred tax liabilities relating to financial instruments		26,766		(6,617	)		(1,262	)		-		-			18,887
Deferred tax liabilities relating to biological assets		475,592		(8,089	)		-			2,649		(382	)		469,770
Deferred tax liabilities relating to inventory		57,619		(1,411	)		-			-		(107	)		56,101
Deferred tax liabilities relating to prepaid expenses		36,837		(1,947	)		-			-		(1	)		34,889
Deferred tax liabilities relating to intangible		10,420		(2,632	)		-			-		(1,699	)		6,089
Deferred tax liabilities relating to other taxable temporary differences		42,551		(5,471	)		-			-		(3,165	)		33,915
Total deferred tax liabilities		2,064,886		(55,785	)		(1,262	)		2,649		(16,673	)		1,993,815

	Opening		Deferred tax			Deferred tax of items		Increase (decrease)		Decrease due to			Increase (decrease)		Closing
	balance 01-01-2023		income (expenses)			charged to equity		business combination		classification to held for sale			net exchange differences		balance 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		17,896		(3,993	)		-		-		(280	)		385		14,008
Deferred tax Assets relating to investments		-		(57,110	)		135,171		-		-			-		78,061
Deferred tax Assets relating to post-employment benefits		25,904		(924	)		736		-		-			10		25,726
Deferred tax Assets relating to property, plant and equipment		45,919		34,370			-		-		-			121		80,410
Deferred tax Assets relating to impairment provision		13,517		(1,907	)		-		-		-			709		12,319
Deferred tax Assets relating to financial instruments		53,347		15,191			17,397		-		(3,986	)		586		82,535
Deferred tax Assets relating to tax loss carry forward		110,526		121,524			-		3,516		(3,387	)		1,289		233,468
Deferred tax Assets relating to inventories		20,942		4,047			-		-		(50	)		72		25,011
Deferred tax Assets relating to provisions for income		9,941		6,859			-		-		-			7		16,807
Deferred tax Assets relating to allowance for doubtful accounts		2,472		(90	)		-		-		-			2		2,384
Deferred tax Assets relating to intangible revaluation		1,466		(1,055	)		-		-		(457	)		81		35
Deferred tax Assets relating to other deductible temporary differences		25,777		12,885			-		-		(239	)		642		39,065
Total deferred tax assets		327,707		129,797			153,304		3,516		(8,399	)		3,904		609,829

						Deferred tax			Increase		Decrease			Increase
	Opening		Deferred tax			of items			(decrease)		due to			(decrease)			Closing
	balance 01-01-2023		(income) Expenses			charged to equity			business combination		classification to held for sale			net exchange differences			balance 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		1,421,116		4,372			-			-		(15,638	)		5,251			1,415,101
Deferred tax liabilities relating to financial instruments		27,806		1,173			(2,213	)		-		-			-			26,766
Deferred tax liabilities relating to biological assets		527,988		2,157			-			-		(60,167	)		5,614			475,592
Deferred tax liabilities relating to inventory		56,531		1,059			-			-		-			29			57,619
Deferred tax liabilities relating to prepaid expenses		37,760		(891	)		-			-		-			(32	)		36,837
Deferred tax liabilities relating to intangible		10,173		(311	)		-			-		-			558			10,420
Deferred tax liabilities relating to other taxable temporary differences		23,237		18,224			-			208		-			882			42,551
Total deferred tax liabilities		2,104,611		25,783			(2,213	)		208		(75,805	)		12,302			2,064,886

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Temporary differences

The following tables summarize the deductible and taxable temporary differences:

Detail of classes of deferred tax temporary differences	12-31-2024				12-31-2023
	Deductible		Taxable		Deductible		Taxable
	difference		difference		difference		difference
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Deferred tax assets		361,884		-		376,361		-
Deferred tax assets - tax loss carry forward		235,828		-		233,468		-
Deferred tax liabilities		-		1,993,815		-		2,064,886
Total		597,712		1,993,815		609,829		2,064,886

Detail of temporary difference income and loss amounts	January – December
	2024		2023
	ThU.S.$		ThU.S.$
Deferred tax assets (*)		137,991		8,275
Deferred tax assets - tax loss carryforward (*)		4,175		121,522
Deferred tax liabilities (*)		53,104		(25,783	)
Total		195,270		104,014

(*) Includes deferred tax expenses related to temporary differences (ThU.S.$ 2,922 as of December 31, 2024), and tax losses (ThU.S.$ 3,008 as of December 31, 2024) generated by Brazilian companies previously classified as held for sale, through the sale date, see Note 14.

Income tax expense

Income tax expense consists of the following:

	January – December
Income tax composition	2024			2023
	ThU.S.$			ThU.S.$
Current income tax expense		(521,903	)		(122,530	)
Tax benefit arising from tax credit used to reduce current tax expense		177,291			60,934
Prior period current income tax adjustments		(1,747	)		(11,037	)
Other current benefit tax (expenses)		(19,311	)		(4,088	)
Current tax expense, net		(365,670	)		(76,721	)

Deferred tax expense relating to origination and reversal of temporary differences (*)		191,095			(17,508	)
Tax benefit arising from tax credits used to reduce deferred tax expense (*)		4,175			121,522
Total deferred tax benefit (expense), net		195,270			104,014
Total income tax benefit (expense)		(170,400	)		27,293

(*) Includes deferred tax expenses related to temporary differences (ThU.S.$ 2,922 as of December 31, 2024), and tax losses (ThU.S.$ 3,008 as of December 31, 2024) generated by Brazilian companies classified as held for sale, through the sale date, see Note 22.

The following table presents the current income tax expense detailed by foreign and domestic (Chile) companies as of December 31, 2024 and December 31, 2023:

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Foreign current income tax expense		(113,313	)		(57,856	)
Domestic current income tax expense		(252,357	)		(18,865	)
Total current income tax expense		(365,670	)		(76,721	)

Foreign deferred tax benefit (expense) (*)		113,445			(28,941	)
Domestic deferred tax benefit (expense)		81,825			132,955
Total deferred tax benefit (expense)		195,270			104,014

Total income tax benefit (expense)		(170,400	)		27,293

(*) Includes deferred tax expenses (ThU.S.$ 5,930 as of December 31, 2024) generated by Brazilian companies previously classified as held for sale, through the sale date, see Note 22.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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
	2024			2023
Reconciliation of income tax from statutory rate to effective tax rate	ThU.S.$			ThU.S.$
Statutory domestic (Chile) income tax rate		27	%		27	%
Tax expense at statutory tax rate		(174,604	)		104,171
Tax effect of foreign tax rates		14,935			2,418
Tax effect of income exempt from taxation		130,193			85,540
Tax effect of not deductible expenses		(166,531	)		(61,380	)
Tax effect of a new evaluation of deferred tax assets (*)		64,350			(79,121	)
Tax effect of tax provided in excess in prior periods		(1,747	)		(11,037	)
Other tax rate effects (**)		(36,996	)		(13,298	)
Total adjustments to tax expense at applicable tax rate		4,204			(76,878	)
Tax benefit (expense) at effective tax rate		(170,400	)		27,293

(*) 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 evaluated the potential impact derived from the implementation of the so-called “GloBE or Pillar 2 Rules”, whereby multinational groups are required to pay a minimum effective tax rate of 15%.

To date, this regulation has not been adopted in Chile (the jurisdiction where Arauco’s parent company is based), but it has been adopted in other jurisdictions where Arauco operates, making it necessary to estimate the prospective impact of its application following its entry into force (January 1, 2024).

In this way, and based on its best estimates, Arauco has considered the impact that these regulations could have in all the jurisdictions in which it operates, and to date has determined that these will only have an impact with respect to some of its operations in Uruguay, recognizing for a preliminary tax provision of ThU.S.$ 14,136.

Current tax assets and liabilities

The current tax assets and liabilities balances are as follow:

Current tax assets	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Monthly Provisional Payments		45,691			18,065
Income tax receivable		30,058			91,177
Provision tax income		(45,129	)		(37,560	)
Other tax receivables		44,993			47,349
Total		75,613			119,031

Current tax liabilities	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Provision tax income (First category)		230,727			48,874
Monthly Provisional Payments and other tax receivables		(203,450	)		(33,012	)
Other tax payables		288			(2,544	)
Total		27,565			13,318

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$

Property, plant and equipment, net
Construction work in progress		725,744			611,424
Land		931,333			882,222
Buildings		3,663,306			3,774,756
Plant and equipment		3,984,319			4,074,957
Information technology equipment		41,250			42,659
Fixtures and fittings		12,288			12,795
Motor vehicles		54,744			50,678
Other property, plant and equipment		197,087			157,625
Total net		9,610,071			9,607,116

Property, plant and equipment, gross
Construction work in progress		725,744			611,424
Land		931,333			882,222
Buildings		6,505,187			6,425,405
Plant and equipment		8,988,084			8,947,315
Information technology equipment		141,492			136,672
Fixtures and fittings		55,785			54,560
Motor vehicles		119,251			108,528
Other property, plant and equipment		215,056			175,501
Total gross		17,681,932			17,341,627

Accumulated depreciation and impairment
Buildings		(2,841,881	)		(2,650,649	)
Plant and equipment		(5,003,765	)		(4,872,358	)
Information technology equipment		(100,242	)		(94,013	)
Fixtures and fittings		(43,497	)		(41,765	)
Motor vehicles		(64,507	)		(57,850	)
Other property, plant and equipment		(17,969	)		(17,876	)
Total		(8,071,861	)		(7,734,511	)

Description of property, plant and equipment pledged as security for liabilities

As of December 31, 2024, 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.

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Amount committed for the acquisition of property, plant and equipment		1,918,997		239,815

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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, 2024 and December 31, 2023:

Reconciliation of property, plant and equipment	Construction work in progress			Land			Buildings			Plant and equipment			IT equipment			Fixtures and fittings			Motor vehicles			Other property, plant and equipment			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2024		611,424			882,222			3,774,756			4,074,957			42,659			12,795			50,678			157,625			9,607,116
Changes
Additions		627,882			34,531			10,667			59,509			687			778			4,107			33,279			771,440
Business combination		-			29,972			274			14			-			12			-			4			30,276
Disposals		(560	)		(524	)		(5,091	)		(1,681	)		(43	)		(99	)		(914	)		-			(8,912	)
Withdrawals		(3,864	)		(139	)		(3,416	)		(14,129	)		(158	)		(30	)		(251	)		(741	)		(22,728	)
Depreciation		-			-			(222,523	)		(393,772	)		(8,504	)		(3,073	)		(9,476	)		(1,297	)		(638,645	)
Impairment loss recognized in profit or loss		-			-			(1,082	)		(7,799	)		(35	)		(567	)		-			-			(9,483	)
Increase (decrease) through net exchange differences		(23,171	)		(22,583	)		(16,113	)		(42,634	)		(394	)		(96	)		(2,624	)		(4,402	)		(112,017	)
Reclassification of assets held for sale		-			(3,601	)		-			-			-			-			-			12,000			8,399
Transfers from construction in progress closed and reclassifications		(485,967	)		11,455			125,834			322,902			7,038			2,568			15,551			619			-
Reclassification from lease to property, plant and equipment		-			-			-			292			-			-			-			-			292
Decrease through transfers of leasing assets		-			-			-			(13,340	)		-			-			(2,327	)		-			(15,667	)
Total changes		114,320			49,111			(111,450	)		(90,638	)		(1,409	)		(507	)		4,066			39,462			2,955
Closing balance 12-31-2024		725,744			931,333			3,663,306			3,984,319			41,250			12,288			54,744			197,087			9,610,071

Reconciliation of property, plant and equipment	Construction work in progress			Land			Buildings			Plant and equipment			IT equipment			Fixtures and fittings			Motor vehicles			Other property, plant and equipment			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2023		3,592,689			893,237			2,085,868			2,760,925			22,642			11,017			45,927			130,030			9,542,335
Changes
Additions		686,387			20,611			41,435			63,303			1,135			329			5,379			26,784			845,363
Business combination		-			-			19			428			-			13			2			227			689
Disposals		(242	)		(2,348	)		(1,669	)		(7,087	)		(839	)		(5	)		(107	)		-			(12,297	)
Withdrawals		(1,659	)		(266	)		(1,533	)		(11,957	)		(14	)		(14	)		(24	)		-			(15,467	)
Depreciation		-			-			(218,546	)		(394,057	)		(8,954	)		(3,425	)		(8,852	)		(1,430	)		(635,264	)
Impairment loss recognized in profit or loss		-			-			(20,883	)		(48,527	)		(322	)		(14	)		(5	)		-			(69,751	)
Increase (decrease) through net exchange differences		2,717			9,635			14,069			41,432			177			46			1,441			1,200			70,717
Reclassification of assets held for sale		(2,524	)		(38,647	)		(5,384	)		(17,628	)		(326	)		(67	)		(4,388	)		-			(68,964	)
Transfers from construction in progress closed and reclassifications		(3,665,944	)		-			1,881,380			1,717,243			29,160			4,915			32,432			814			-
Reclassification from lease to property, plant and equipment		-			-			-			455			-			-			-			-			455
Decrease through transfers of leasing assets		-			-			-			(29,573	)		-			-			(21,127	)		-			(50,700	)
Total changes		(2,981,265	)		(11,015	)		1,688,888			1,314,032			20,017			1,778			4,751			27,595			64,781
Closing balance 12-31-2023		611,424			882,222			3,774,756			4,074,957			42,659			12,795			50,678			157,625			9,607,116

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

The depreciation expense for the period ended December 31, 2024 and 2023 was as follows:

	January – December
	2024		2023
Depreciation for the year	ThU.S.$		ThU.S.$
Cost of sales		584,343		535,244
Administrative expenses		30,007		29,009
Other expenses		14,709		46,122
Total		629,059		610,375

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 (Average)
Buildings		58
Plant and equipment		30
Information technology equipment		8
Fixtures and fittings		28
Motor vehicles		7
Other property, plant and equipment		14

As of December 31, 2024 and 2023 there are not significant costs for capitalized borrowing (see Note 12).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTE 8. Leases

Arauco acting as lessee

Right of use assets

	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Property, plant and equipment by right of use, net

Land		599,101			460,386
Buildings		15,992			16,412
Plant and equipment		63,102			60,993
Information technology equipment		392			186
Motor vehicles		80,464			50,869
Other property, plant and equipment		12,835			11,515
Total net		771,886			600,361

Property, plant and equipment by right of use, gross

Land		660,753			493,297
Buildings		32,265			35,183
Plant and equipment		93,922			85,252
Information technology equipment		784			412
Motor vehicles		269,228			223,708
Other property, plant and equipment		15,845			12,666
Total gross		1,072,797			850,518

Accumulated depreciation and impairment by right of use

Land		(61,652	)		(32,911	)
Buildings		(16,273	)		(18,771	)
Plant and equipment		(30,820	)		(24,259	)
Information technology equipment		(392	)		(226	)
Motor vehicles		(188,764	)		(172,839	)
Other property, plant and equipment		(3,010	)		(1,151	)
Total		(300,911	)		(250,157	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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, 2024 and 2023:

Reconciliation of property, plant and equipment by right of use	Land			Buildings			Plant and equipment			IT equipment			Motor vehicles			Other property, plant and equipment			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2024		460,386			16,412			60,993			186			50,869			11,515			600,361
Changes
Additions		280,671			8,385			9,103			511			58,954			3,797			361,421
Disposals		-			(2,474	)		-			-			(130	)		-			(2,604	)
Withdrawals		-			(539	)		-			-			(178	)		-			(717	)
Depreciation (*)		(31,792	)		(5,604	)		(6,641	)		(204	)		(28,977	)		(2,200	)		(75,418	)
Increase (decrease) through net exchange differences		(110,574	)		(131	)		(353	)		(101	)		(74	)		15			(111,218	)
Reclassification from lease to Property, plant and equipment		-			-			-			-			-			(292	)		(292	)
Increase (decrease) through others		410			(57	)		-			-			-			-			353
Total changes		138,715			(420	)		2,109			206			29,595			1,320			171,525
Closing balance 12-31-2024		599,101			15,992			63,102			392			80,464			12,835			771,886

Reconciliation of property, plant and equipment by right of use	Land			Buildings			Plant and equipment			IT equipment			Motor vehicles			Other property, plant and equipment			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2023		195,290			16,731			66,709			157			24,437			3,163			306,487
Changes
Additions		307,524			5,196			31			186			53,171			10,151			376,259
Business combination		-			231			-			-			-			-			231
Withdrawals		(14,191	)		(23	)		(242	)		(21	)		(1,381	)		(626	)		(16,484	)
Depreciation (*)		(23,759	)		(5,666	)		(5,526	)		(147	)		(25,978	)		(797	)		(61,873	)
Increase (decrease) through net exchange differences		12,816			(29	)		21			9			99			-			12,916
Reclassification from lease to Property, plant and equipment		-			-			-			-			-			(455	)		(455	)
Increase (decrease) through others		14			(28	)		-			2			521			79			588
Reclassification of assets held for sale		(17,308	)		-			-			-			-			-			(17,308	)
Total changes		265,096			(319	)		(5,716	)		29			26,432			8,352			293,874
Closing balance 12-31-2023		460,386			16,412			60,993			186			50,869			11,515			600,361

(*) 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 period ending December 31, 2024 and 2023 recognized in property, plant and equipment by right of use is as follows:

	January – December
	2024		2023
Depreciation for the period	ThU.S.$		ThU.S.$
Cost of sales		35,005		28,082
Distribution costs		1,068		1,184
Administrative expenses		7,110		7,361
Total		43,183		36,627

In the application of IFRS 16, Arauco chose not to apply the requirements to recognize a liability and an asset for right of use for leases which term ends within 12 months and for leases in which the underlying asset is of low value ThU.S.$ 5. As a result, Arauco has recognized directly in the consolidated statement of profit or loss, as follows:

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Expenses from payments of variable leases		(231,094	)		(206,332	)
Expenses from low value leases		(4,603	)		(3,899	)
Expenses from short-term leases		(39,047	)		(39,878	)
Income from sublease of right of use assets		628			464

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

Arauco acting as lessor

Reconciliation of financial lease minimum payments:

	12-31-2024
	Gross		Interest		Present value
Periods	ThU.S.$		ThU.S.$		ThU.S.$
Less than one year		17,247		-		17,247
Between one and six years		53,664		3,224		50,440
Total		70,911		3,224		67,687

	12-31-2023
	Gross		Interest		Present value
Periods	ThU.S.$		ThU.S.$		ThU.S.$
Less than one year		16,314		-		16,314
Between one and six years		69,226		4,615		64,611
Total		85,540		4,615		80,925

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
Classes of revenue	2024		2023
	ThU.S.$		ThU.S.$
Revenue from sales of goods		6,415,109		5,869,341
Revenue from rendering of services		131,037		142,478
Total		6,546,146		6,011,819

The reportable segments revenues by business area and by geographical area are presented in Note 24.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTE 10. EMPLOYEE BENEFITS

Classes of benefits and expenses by employee

	January – December
	2024		2023
	ThU.S.$		ThU.S.$
Employee expenses		711,016		747,288
Wages and salaries		690,996		717,548
Severance indemnities		20,020		29,740

	12-31-2024			12-31-2023
Discount rate		3.23	%		3.23	%
Inflation		3.20	%		3.20	%
Annual rate of wage growth		5.22	%		5.22	%
Mortality rate		RV-2020			RV-2014

Sensitivities to assumptions	ThU.S.$

Discount rate
Increase in 100 bps		(5,721	)
Decrease in 100 bps		6,546

Wage growth rates
Increase in 100 bps		5,773
Decrease in 100 bps		(5,099	)

The following tables set forth the balances and the reconciliation of the present value of severance indemnities obligations as of December 31, 2024 and 2023:

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Current		6,669		7,863
Non-current		77,634		86,462
Total		84,303		94,325

Reconciliation of the present value of severance indemnities obligations	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance		94,325			95,260
Current service cost		5,979			9,833
Interest cost		4,367			4,737
(Gains) losses from changes in actuarial assumptions		22			131
Actuarial gains and losses arising from experience		743			2,595
Benefits paid		(7,152	)		(16,197	)
Increase (decrease) for foreign currency exchange rates changes		(13,981	)		(2,034	)
Closing balance		84,303			94,325

The average staffing as of December 31, 2024 was 18,928 people.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

NOTE 11. BALANCES IN FOREIGN CURRENCY AND FOREIGN CURRENCY EXCHANGE RATE IMPACT IN PROFIT OR LOSS.

December 31, 2024	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	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		668,888		8,754		117,848		12,642		40,128		11,794		211,506		-		1,071,560
Other current financial assets		25,949		-		-		-		-		-		11		-		25,960
Other current non-financial assets		104,366		562		17,153		31,100		20,539		9,551		77,821		-		261,092
Trade and other current receivables		815,884		28,149		38,327		26,569		33,704		1,077		92,401		18,596		1,054,707
Accounts receivable due from related companies		5,646		-		-		1,812		-		-		2,701		-		10,159
Current Inventories		1,335,410		-		81,043		-		37,954		-		1,853		-		1,456,260
Current biological assets		304,302		-		11,198		-		-		-		-		-		315,500
Current tax assets		70,105		-		2,636		-		515		-		2,357		-		75,613
Non-current assets or disposal groups classified as held for sale		3,330,550		37,465		268,205		72,123		132,840		22,422		388,650		18,596		4,270,851
Non-current assets or disposal groups classified as held for sale		3,708		-		13		-		46		-		-		-		3,767
Total current assets		3,334,258		37,465		268,218		72,123		132,886		22,422		388,650		18,596		4,274,618

Non-current assets
Other non-current financial assets		16,747		-		-		-		-		-		-		-		16,747
Other non-current non-financial assets		58,937		-		24,043		-		629		8		1,419		-		85,036
Trade and other non-current receivables		2,784		-		9,891		458		-		-		1,505		51,097		65,735
Investments accounted for using equity method		106,784		211,345		41,352		-		-		-		47,130		-		406,611
Intangible assets other than goodwill		52,318		-		2,368		-		63		-		1,231		-		55,980
Goodwill		41,286		-		10,039		-		-		-		-		-		51,325
Property, plant and equipment		8,917,848		-		462,845		-		228,153		-		1,225		-		9,610,071
Right of use assets		225,551		-		544,198		-		1,932		-		205		-		771,886
Non-current biological assets		2,554,897		-		192,997		-		-		-		-		-		2,747,894
Deferred tax assets		21,407		-		48,554		-		714		-		2,734		-		73,409
Total non-current assets		11,998,559		211,345		1,336,287		458		231,491		8		55,449		51,097		13,884,694

Total assets		15,332,817		248,810		1,604,505		72,581		364,377		22,430		444,099		69,693		18,159,312

December 31, 2024	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	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		191,900		67,987		36,538		-		-		-		-		52,480		348,905
Current lease liabilities		13,273		113		13,435		-		584		965		22,582		4,899		55,851
Trade and other current payables		188,747		21,414		78,396		47,373		24,199		16,411		331,286		38,145		745,971
Accounts payable to related companies		426		-		3,007		-		-		-		7,130		-		10,563
Other short-term provisions		490		-		-		-		-		-		111		1,236		1,837
Current tax liabilities		3,086		12,092		1,184		8,252		2,951		-		-		-		27,565
Current provisions for employee benefits		-		-		-		-		-		-		6,669		-		6,669
Other current non-financial liabilities		125,483		94		21,938		6,714		2,999		9		8,328		24		165,589
Current liabilities other than liabilities included in disposal groups classified as held for sale		523,405		101,700		154,498		62,339		30,733		17,385		376,106		96,784		1,362,950
Liabilities included in disposal groups classified as held for sale		-		-		-		-		-		-		-		-		-
Total liabilities, current		523,405		101,700		154,498		62,339		30,733		17,385		376,106		96,784		1,362,950

Non-current liabilities
Other non-current financial liabilities		3,534,436		255,430		164,899		-		-		-		-		1,766,947		5,721,712
Non-current lease liabilities		120,661		295		490,778		-		523		49		43,238		16,595		672,139
Other non-current payables		23,942		-		3,266		-		-		-		8,102		-		35,310
Non-current accounts payable to related companies		26,207		-		-		-		-		-		-		-		26,207
Other long-term provisions		-		-		6,785		26,294		-		-		42		-		33,121
Deferred tax liabilities		1,443,086		-		21,645		-		4,781		-		-		-		1,469,512
Non-current provisions for employee benefits		-		-		-		-		1,211		-		76,423		-		77,634
Other non-current non-financial liabilities		-		-		36,075		64		-		-		873		-		37,012
Total non-current liabilities		5,148,332		255,725		723,448		26,358		6,515		49		128,678		1,783,542		8,072,647

Total liabilities		5,671,737		357,425		877,946		88,697		37,248		17,434		504,784		1,880,326		9,435,597

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

December 31, 2023	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	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		310,108		6,532		30,402		58,592		26,439		3,149		134,786		-		570,008
Other current financial assets		20,303		-		-		25,301		-		-		-		-		45,604
Other current non-financial assets		61,669		569		31,594		2,945		2,975		8,671		131,831		-		240,254
Trade and other current receivables		711,883		30,330		67,137		19,916		34,234		640		115,907		17,855		997,902
Accounts receivable due from related companies		-		-		-		174		-		-		2,442		-		2,616
Current Inventories		1,234,477		-		117,927		-		46,389		-		1,053		-		1,399,846
Current biological assets		298,703		-		72,254		-		-		-		-		-		370,957
Current tax assets		103,781		-		3,716		-		9,007		1,388		1,139		-		119,031
Non-current assets or disposal groups classified as held for sale		2,740,924		37,431		323,030		106,928		119,044		13,848		387,158		17,855		3,746,218
Non-current assets or disposal groups classified as held for sale		107		-		429,197		-		56		-		-		-		429,360
Total current assets		2,741,031		37,431		752,227		106,928		119,100		13,848		387,158		17,855		4,175,578

Non-current assets
Other non-current financial assets		33,512		-		-		-		-		-		-		-		33,512
Other non-current non-financial assets		64,784		-		28,415		4,965		620		8		382		-		99,174
Trade and other non-current receivables		20,613		-		21,614		-		-		-		1,889		64,385		108,501
Investments accounted for using equity method		137,746		215,322		34,557		-		-		-		35,986		-		423,611
Intangible assets other than goodwill		62,868		-		3,352		-		211		-		-		-		66,431
Goodwill		41,458		-		14,433		-		-		-		-		-		55,891
Property, plant and equipment		9,037,099		-		406,713		-		162,067		-		1,237		-		9,607,116
Right of use assets		203,637		-		395,560		-		1,164		-		-		-		600,361
Non-current biological assets		2,496,739		-		154,883		-		-		-		-		-		2,651,622
Deferred tax assets		81,309		-		6,947		-		311		-		-		-		88,567
Total non-current assets		12,179,765		215,322		1,066,474		4,965		164,373		8		39,494		64,385		13,734,786

Total assets		14,920,796		252,753		1,818,701		111,893		283,473		13,856		426,652		82,240		17,910,364

December 31, 2023	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	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		935,282		72,415		19,143		496		-		-		-		55,189		1,082,525
Current lease liabilities		11,215		95		17,487		-		1,879		66		11,107		5,393		47,242
Trade and other current payables		150,867		18,933		88,484		46,403		18,336		14,609		381,289		41,534		760,455
Accounts payable to related companies		-		-		-		-		-		-		6,958		-		6,958
Other short-term provisions		2,542		-		-		-		-		-		18		1,345		3,905
Current tax liabilities		13,313		-		5		-		-		-		-		-		13,318
Current provisions for employee benefits		-		-		-		-		-		-		7,863		-		7,863
Other current non-financial liabilities		9,095		61		25,086		3,014		7,827		1		5,064		-		50,148
Current liabilities other than liabilities included in disposal groups classified as held for sale		1,122,314		91,504		150,205		49,913		28,042		14,676		412,299		103,461		1,972,414
Liabilities included in disposal groups classified as held for sale		-		-		99,328		-		-		-		-		-		99,328
Total liabilities, current		1,122,314		91,504		249,533		49,913		28,042		14,676		412,299		103,461		2,071,742

Non-current liabilities
Other non-current financial liabilities		3,453,766		342,013		186,687		-		-		-		-		1,539,102		5,521,568
Non-current lease liabilities		114,984		55		346,524		-		1,661		130		22,382		26,404		512,140
Other non-current payables		22,814		-		9,714		-		-		-		18,049		-		50,577
Non-current accounts payable to related companies		22,981		-		-		-		-		-		-		-		22,981
Other long-term provisions		-		-		3,299		25,352		-		-		-		-		28,651
Deferred tax liabilities		1,506,687		-		29,744		-		7,193		-		-		-		1,543,624
Non-current provisions for employee benefits		-		-		-		-		1,209		-		85,253		-		86,462
Other non-current non-financial liabilities		-		-		63,574		6		-		-		10		-		63,590
Total non-current liabilities		5,121,232		342,068		639,542		25,358		10,063		130		125,694		1,565,506		7,829,593

Total liabilities		6,243,546		433,572		889,075		75,271		38,105		14,806		537,993		1,668,967		9,901,335

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

	12-31-2024						12-31-2023
	Up to 90 days		From 91 days to 1 year		Total		Up to 90 days		From 91 days to 1 year		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Total current liabilities		1,021,171		341,779		1,362,950		1,030,309		1,041,433		2,071,742

Other current financial liabilities		60,710		288,195		348,905		124,220		958,305		1,082,525
U.S. dollar		36,401		155,499		191,900		116,665		818,617		935,282
Euros		-		67,987		67,987		-		72,415		72,415
Brazilian real		24,309		12,229		36,538		7,059		12,084		19,143
Argentine pesos		-		-		-		496		-		496
U.F.		-		52,480		52,480		-		55,189		55,189

Bank borrowings		28,154		220,673		248,827		86,243		388,779		475,022
U.S. dollar		3,845		140,457		144,302		79,184		304,280		383,464
Euros		-		67,987		67,987		-		72,415		72,415
Brazilian real		24,309		12,229		36,538		7,059		12,084		19,143

Other borrowings		32,556		67,522		100,078		37,977		569,526		607,503
U.S. dollar		32,556		15,042		47,598		37,481		514,337		551,818
Argentine pesos		-		-		-		496		-		496
U.F.		-		52,480		52,480		-		55,189		55,189

Current lease liabilities		15,116		40,735		55,851		16,911		30,331		47,242
U.S. dollar		3,612		9,661		13,273		3,184		8,031		11,215
Euros		30		83		113		24		71		95
Brazilian real		3,729		9,706		13,435		8,848		8,639		17,487
Mexican pesos		147		437		584		458		1,421		1,879
Other currencies		107		858		965		16		50		66
Chilean pesos		5,698		16,884		22,582		2,648		8,459		11,107
U.F.		1,793		3,106		4,899		1,733		3,660		5,393

Trade and other current payables		741,847		4,124		745,971		744,010		16,445		760,455
U.S. dollar		188,747		-		188,747		150,702		165		150,867
Euros		21,414		-		21,414		18,933		-		18,933
Brazilian real		74,610		3,786		78,396		72,204		16,280		88,484
Argentine pesos		47,373		-		47,373		46,403		-		46,403
Mexican pesos		23,861		338		24,199		18,336		-		18,336
Other currencies		16,411		-		16,411		14,609		-		14,609
Chilean pesos		331,286		-		331,286		381,289		-		381,289
U.F.		38,145		-		38,145		41,534		-		41,534

Accounts payable to related companies		10,563		-		10,563		6,958		-		6,958
U.S. dollar		426		-		426		-		-		-
Brazilian real		3,007		-		3,007		-		-		-
Chilean pesos		7,130		-		7,130		6,958		-		6,958

Other short-term provisions		1,837		-		1,837		3,905		-		3,905
U.S. dollar		490		-		490		2,542		-		2,542
Chilean pesos		111		-		111		18		-		18
U.F.		1,236		-		1,236		1,345		-		1,345

Current tax liabilities		18,840		8,725		27,565		1,567		11,751		13,318
U.S. dollar		2,613		473		3,086		1,562		11,751		13,313
Euros		12,092		-		12,092		-		-		-
Brazilian real		1,184		-		1,184		5		-		5
Argentine pesos		-		8,252		8,252		-		-		-
Mexican pesos		2,951		-		2,951		-		-		-

Current provisions for employee benefits		6,669		-		6,669		7,863		-		7,863
Chilean pesos		6,669		-		6,669		7,863		-		7,863

Other current non-financial liabilities		165,589		-		165,589		25,547		24,601		50,148
U.S. dollar		125,483		-		125,483		6,868		2,227		9,095
Euros		94		-		94		61		-		61
Brazilian real		21,938		-		21,938		2,935		22,151		25,086
Argentine pesos		6,714		-		6,714		3,014		-		3,014
Mexican pesos		2,999		-		2,999		7,827		-		7,827
Other currencies		9		-		9		1		-		1
Chilean pesos		8,328		-		8,328		4,841		223		5,064
U.F.		24		-		24		-		-		-

Liabilities included in disposal groups classified as held for sale		-		-		-		99,328		-		99,328
Brazilian real		-		-		-		99,328		-		99,328

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

	12-31-2024								12-31-2023
	From 13 months to 3 years		From 3 years to 5 years		More than 5 years		Total		From 13 months to 3 years		From 3 years to 5 years		More than 5 years		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Total non-current liabilities		2,905,653		1,040,941		4,126,053		8,072,647		2,434,678		1,034,845		4,360,070		7,829,593

Other non-current financial liabilities		1,686,157		885,612		3,149,943		5,721,712		1,181,498		877,395		3,462,675		5,521,568
U.S. dollar		1,166,799		495,482		1,872,155		3,534,436		594,470		494,363		2,364,933		3,453,766
Euros		126,200		129,230		-		255,430		134,999		138,032		68,982		342,013
Brazilian real		120,222		44,677		-		164,899		155,703		30,984		-		186,687
U.F.		272,936		216,223		1,277,788		1,766,947		296,326		214,016		1,028,760		1,539,102

Bank borrowings		728,289		173,907		-		902,196		786,031		169,016		68,982		1,024,029
U.S. dollar		481,867		-		-		481,867		495,329		-		-		495,329
Euros		126,200		129,230		-		255,430		134,999		138,032		68,982		342,013
Brazilian real		120,222		44,677		-		164,899		155,703		30,984		-		186,687

Other borrowings		957,868		711,705		3,149,943		4,819,516		395,467		708,379		3,393,693		4,497,539
U.S. dollar		684,932		495,482		1,872,155		3,052,569		99,141		494,363		2,364,933		2,958,437
U.F.		272,936		216,223		1,277,788		1,766,947		296,326		214,016		1,028,760		1,539,102

Non-current lease liabilities		104,578		70,490		497,071		672,139		70,451		58,933		382,756		512,140
U.S. dollar		26,402		19,943		74,316		120,661		21,617		16,715		76,652		114,984
Euros		174		121		-		295		48		7		-		55
Brazilian real		36,290		34,477		420,011		490,778		20,403		26,754		299,367		346,524
Mexican pesos		494		29		-		523		1,386		275		-		1,661
Other currencies		49		-		-		49		96		34		-		130
Chilean pesos		32,934		10,304		-		43,238		15,933		4,661		1,788		22,382
U.F.		8,235		5,616		2,744		16,595		10,968		10,487		4,949		26,404

Non-current payable		35,310		-		-		35,310		27,763		-		22,814		50,577
U.S. dollar		23,942		-		-		23,942		-		-		22,814		22,814
Brazilian real		3,266		-		-		3,266		9,714		-		-		9,714
Chilean pesos		8,102		-		-		8,102		18,049		-		-		18,049

Non- current accounts payable to related companies		13,655		7,581		4,971		26,207		-		7,581		15,400		22,981
U.S. dollar		13,655		7,581		4,971		26,207		-		7,581		15,400		22,981

Other long-term provisions		29,155		3,966		-		33,121		28,543		108		-		28,651
Brazilian real		2,819		3,966		-		6,785		3,191		108		-		3,299
Argentine pesos		26,294		-		-		26,294		25,352		-		-		25,352
Chilean pesos		42		-		-		42		-		-		-		-

Deferred tax liabilities		922,585		72,859		474,068		1,469,512		985,219		82,142		476,263		1,543,624
U.S. dollar		916,756		72,859		453,471		1,443,086		976,270		81,004		449,413		1,506,687
Brazilian real		1,048		-		20,597		21,645		1,756		1,138		26,850		29,744
Mexican pesos		4,781		-		-		4,781		7,193		-		-		7,193

Non-current provisions for employee benefits		77,634		-		-		77,634		86,462		-		-		86,462
Mexican pesos		1,211		-		-		1,211		1,209		-		-		1,209
Chilean pesos		76,423		-		-		76,423		85,253		-		-		85,253

Other non-current non-financial liabilities		36,579		433		-		37,012		54,742		8,686		162		63,590
Brazilian real		35,642		433		-		36,075		54,726		8,686		162		63,574
Argentine pesos		64		-		-		64		6		-		-		6
Chilean pesos		873		-		-		873		10		-		-		10

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

The table below sets forth the subsidiaries that have determined a functional currency other than the U.S. dollar as follows:

Subsidiary	Country	Functional currency
Arauco Canada Ltd.	Canada	Canadian dollar
Arauco Celulose do Brasil	Brazil	Brazilian real
Arauco do Brasil S.A.	Brazil	Brazilian real
Arauco Florestal Arapoti S.A. (1)	Brazil	Brazilian real
Arauco Forest Brasil S.A. (1)	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 MS Participações 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
Empreendimentos Florestais Santa Cruz Ltda. (1)	Brazil	Brazilian real
E2E SpA.	Chile	Chilean pesos
Leasing Forestal S.A.	Argentina	Argentine pesos
Lemu Earth SpA.	Chile	Chilean pesos
Mahal Empreendimentos e Participações S.A.	Brazil	Brazilian real
Novo Oeste Gestao de Ativos Florestais S.A.	Brazil	Brazilian real
Tecverde Engenharia S.A.	Brazil	Brazilian real

(1)

Entities sold in July 2024.

The table below shows a detail per company of the effect in the period of the reserve of exchange differences on translation:

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Arauco Canada Limited.		(18,206	)		8,210
Arauco Celulose do Brasil S.A.		(24,407	)		-
Arauco Do Brasil S.A.		(31,336	)		36,141
Arauco Florestal Arapoti S.A. (*)		101,277			42,281
Arauco Forest Brasil S.A. (*)		287,217			124,804
Arauco Industria de Mexico, S.A de C.V		(56,079	)		37,086
Arauco MS Participações S.A.		(116,742	)		-
Sonae Arauco S.A.		(12,733	)		7,197
Others		(3,894	)		733
Total reserve of exchange differences on translation		125,097			256,452

(*) It includes reverse of reserve for exchange differences due to conversion of Brazilian companies sold in this period.

Effect of foreign exchange rates changes

	January – December
	2024			2023
	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		(21,314	)		(35,419	)
Reserve of exchange differences on translation (with non-controlling interests)		259,895			121,470

NOTE 12. Borrowing COSTS

Arauco capitalizes interest at effective rate on current investment projects, that are carried out with debts. To date, Arauco only capitalized financial interest related to minor projects.

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Interest cost capitalized, property, plant and equipment
Capitalization rate of interest cost capitalized, property, plant and equipment		4.55	%		4.87	%
Amount of the interest cost capitalized, property, plant and equipment		2,131			248

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

Amounts in thousands of U.S. dollars, except as indicated

The table below sets forth information about the relationship between the parent company and its subsidiaries

				% Ownership interest						% Ownership interest
			Functional	12-31-2024						12-31-2023
ID N°	Company Name	Country	Currency	Direct		Indirect		Total		Direct		Indirect		Total
77.630.621-5	Agrícola Ranquillón SpA.	Chile	U.S. dollar		-		98.64273		98.64273		-		98.64114		98.64114
77.630.618-5	Agrícola San Carlos SpA.	Chile	U.S. dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.623-1	Agrícola Santa Emilia SpA.	Chile	U.S. dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.625-8	Agrícola Santa Isabel SpA.	Chile	U.S. dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.626-6	Agrícola Siberia SpA.	Chile	U.S. dollar		-		98.64273		98.64273		-		98.64114		98.64114
77.630.629-0	Agrícola Trupán SpA. (1)	Chile	U.S. dollar		-		-		-		-		98.64114		98.64114
-	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
96.547.510-9	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		-		99.99902		99.99902		-		99.99907		99.99907
-	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 Europe Cooperatief U.A.	The Netherlands	U.S. dollar		0.25003		99.74895		99.99898		0.44979		99.54919		99.99898
-	Arauco Florestal Arapoti S.A. (2)	Brazil	Brazilian real		-		-		-		-		99.99899		99.99899
-	Arauco Forest Brasil S.A. (2)	Brazil	Brazilian real		-		-		-		8.51901		91.48006		99.99907
-	Arauco Participações Florestais Ltda.	Brazil	Brazilian real		-		99.99907		99.99907		-		99.99907		99.99907
-	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		0.20000		99.79898		99.99898
-	Arauco Perú S.A.	Peru	U.S. dollar		0.00126		99.99772		99.99898		0.00126		99.99772		99.99898
-	Arauco Pulp Limited.	United Kingdom	U.S. dollar		-		99.99898		99.99898		-		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
96.657.900-5	Consorcio Protección Fitosanitaria Forestal S.A.	Chile	Chilean Pesos		-		56.83115		56.83115		-		56.83107		56.83107
-	Empreendimentos Florestais Santa Cruz Ltda. (2)	Brazil	Brazilian real		-		-		-		-		99.99907		99.99907
76.869.577-0	E2E SpA.	Chile	Chilean pesos		1.00000		98.99861		99.99861		1.00000		98.99861		99.99861
85.805.200-9	Forestal Arauco S.A.	Chile	U.S. dollar		99.94839		-		99.94839		99.94839		-		99.94839
93.838.000-7	Forestal Cholguán S.A.	Chile	U.S. dollar		-		98.64273		98.64273		-		98.64114		98.64114
96.563.550-5	Inversiones Arauco Internacional Ltda.	Chile	U.S. dollar		98.01862		1.98036		99.99898		98.01862		1.98036		99.99898
79.990.550-7	Investigaciones Forestales Bioforest SpA.	Chile	U.S. Dol

ARAUCO & CONSTITUTION PULP INC 6-K