FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Report of Foreign Private Issuer

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

of the Securities Exchange Act of 1934

For the month of May 2023

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  ☒            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  ☒

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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:

Assets	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$		Variation ThU.S.$
Current assets		4,085,823		3,774,921		310,902
Non-current assets		13,536,425		13,405,187		131,238
Total assets		17,622,248		17,180,108		2.57	%
Liabilities	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$		Variation ThU.S.$
Current liabilities		1,921,071		1,526,284		394,787
Non-current liabilities		7,574,580		7,393,840		180,740
Non–controlling interests		4,884		5,189		(305	)
Equity attributable to parent company		8,121,713		8,254,795		(133,082	)
Total net equity and liabilities		17,622,248		17,180,108		2.57	%

As of March 31, 2023, total assets increased MU.S.$ 442 compared to December 31, 2022, equivalent to a 2.57% variation. This variation was driven mainly by an increase in cash and cash equivalents, property, plant and equipment and inventories, which are offset by a lower balance of trade receivables and other receivables.

In turn, total liabilities increased by MU.S.$ 576 principally by financial liabilities for bank borrowings, which are offset by a lower balance of deferred tax liabilities.

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	03-31-2023			12-31-2022
Current liquidity (current assets / current liabilities)		2.13			2.47
Acid ratio ((current assets-inventories, biological assets) / current liabilities)		1.15			1.29
Debt indicators	03-31-2023			12-31-2022
Debt to equity ratio (total liabilities / equity)		1.17			1.08
Short-term debt to total debt (current liabilities / total liabilities)		0.20			0.17
Long-term debt to total debt (non-current liabilities / total liabilities)		0.80			0.83
	03-31-2023			03-31-2022
Financial expenses coverage ratio (earnings before taxes + interest expense / interest expense)		(0.40	)		9.63
Activity ratio	03-31-2023			12-31-2022
Inventory turnover-time (cost of sales / inventories + current biological assets)		2.25			2.59
Inventory turnover-time (excluding biological assets) (Cost of sales /inventory)		2.76			3.23
Inventory permanence-days ((inventories + biological assets) /cost of sales)		160.04			139.26
Inventory permanence-days (excluding biological assets) (inventory / cost of sales)		130,44			111.46

As of March 31, 2023, the short-term debt to total debt ratio represented 20% of total liabilities (17% as of December 31, 2022).

Our financial expenses coverage ratio decreased from 9.63 to (0.40), mainly due to the losses before taxes generated for the period ended March 31, 2023, compared to the profits before taxes generated in the same period of 2022.

1

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

b) Statement of profit or loss

Profit before income tax

We recorded a loss before income tax of approximately MU.S.$ 112 compared to a profit of approximately MU.S.$ 406 in the same period of 2022. The variation of MU.S.$ 518 is explained by the factors described in the following table:

Item	MU.S.$
Gross profit		(353	)
Distribution and administrative expenses		64
Other income and expenses		(188	)
Others		(41	)
Net change in profit (loss) before income tax		(518	)

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	03-31-2023 ThU.S.$		03-31-2022 ThU.S.$
Pulp		648,408		741,848
Wood		790,879		1,019,472
Other		184		304
Total revenues		1,439,471		1,761,624

Sales costs	03-31-2023 ThU.S.$		03-31-2022 ThU.S.$
Wood		210,164		147,801
Forestry work and other services		150,831		140,212
Depreciation and amortization		107,773		121,215
Other operating costs		565,243		593,922
Total sales costs		1,034,011		1,003,150

Profitability index	03-31-2023			12-31-2022
Profitability on equity		(2.65	)		8.76
Profitability on assets		(1.25	)		4.16
Return on operating assets		2.27			7.94

Profitability ratios	03-31-2023			03-31-2022
Earnings per share (U.S.$) (1)		(0,4496	)		2,7313
Profit after tax (ThU.S.$) (2)		(54,302	)		329,060
Gross profit (ThU.S.$)		405,460			758,474
Finance costs (ThU.S.$)		(80,146	)		(47,019	)

(1) Average earnings per share refer to the profit to net equity to parent company.

(2) Includes non-controlling interest.

EBITDA	03-31-2023 ThU.S.$			03-31-2022 ThU.S.$
Profit (loss)		(54,302	)		329,060
Finance costs		80,146			47,019
Finance income		(22,777	)		(13,331	)
Income tax expense		(57,592	)		76,630
EBIT		(54,525	)		439,378
Depreciation and amortization		147,908			132,679
EBITDA		93,383			572,057
Cost at fair value of the harvest		85,115			78,201
Gain from changes in fair value of biological assets		(52,622	)		(53,704	)
Gains (losses) on exchange difference on translation		23,696			18,980
Others*		38,408			12,880
Adjusted EBITDA		187,980			628,414

* Considers loss of forest due to fires and theft and impairment provision for industrial property, plant and equipment.

2

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

The turnover for the first quarter of 2023 decreased by 14.6%, compared to the same period of 2022. This decrease was due to a 21% reduction in the invoiced volumes. Higher invoiced prices partially offset this decrease in turnover, compared to the same period of 2022.

During the first quarter of 2023, price decreases occurred in all markets and in all grades. Global inventories continued increasing following the last quarter of 2022.The increase in long fiber supply was mainly due to the fact that the production of the North of Europe was traded in Asia. The increase in production was mainly due to the replacement of Birch by long fiber. The increase of short fiber was mainly due to lower demand for pulp by the final customers.

In China, after Chinese New Year, the paper markets began to reactivate, but not as was expected. In addition to this, an increase in the demand of pulp could not be observed, given that the final customers had a lot of inventory throughout the chain. As the quarter progressed the market began to unravel and the Tissue industry began to reduce its operating rate in response to weak end product sales. On the other hand, there was quite a bit of additional supply from other producers, and more pulp from Russia and shipment diversion from other destinations to China. Pressured buyers and the relatively weak market meant that the prices of all fibers declined throughout the quarter.

In Europe, the demand for paper decreased considerably. However, the price of the final producers has managed to remain stable due to reductions in paper output, which has resulted in the margins of paper companies remaining positive, but affecting the demand for pulp. Demand from the Tissue industry, specifically from the At-Home segment, has remained stable. Pulp stocks, which belong to pulp producers and end customers, increased throughout the first quarter of 2023, mainly at the ports. This has resulted in an increase in spot supply at prices well below contract prices. During the quarter, short fiber prices decreased to a greater extent than long fiber prices.

In textile pulp, the market during the first quarter remained relatively stable, with some price increases during February and March. Viscose producers, an industry that uses textile pulp, increased its operation rate to 70-80%. Textile industry reported better figures in consumption and exports in China.

3

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

Production during the first quarter of 2023 was affected by the unscheduled shutdown of the Constitución mill, which was closed during the entire first quarter, and the unscheduled shutdown of the Argentina mill, which was affected by a turbogenerator problem. Additionally, during the first quarter, the MAPA Project started production.

Wood Products Business

Sawn timber

For sawn timber, in the first quarter of 2023, there was a continued drop in sales levels when compared to the same period of the previous year. Since the end of last year, the effects of lower economic activity in various markets are beginning to be felt. China was affected by real estate issues, problems derived from Covid, and low economic growth. The rest of Asia and Europe were affected by high inventories, high interest rates, and geopolitical uncertainty. For the upcoming months, demand continues to be limited, but the situation may show a slight improvement due to supply-related issues.

In remanufacturing, in the U.S., during this quarter, the effects of high inflation in the region, rate hikes, high inventories in the supply chain, and an increased supply from Asia, local sources, and Latin America continued to materialize, negatively impacting demand and prices. For the second quarter, a stabilization is expected in some markets.

Plywood

During the first quarter of 2023, there was a lower demand for plywood compared to the same period of the previous year, generally affecting volumes and prices. This decline can be explained mainly due to the effect of inflation and higher interest rates in America and Oceania, affecting the construction and remodeling/renovation sectors. In addition to the foregoing, the complicated scenario in Europe due to the war lingers on, impacting demand and resulting in increased costs. Improvements are expected in the North American market next quarter, during the summer period, as well as a moderate recovery in Europe.

Panels (MDF, PB, Melamine)

During the first quarter of 2023, volumes and prices continued to be affected by the increase in exports from Brazil to the rest of the region, especially in MDF. From the supply side, a downward trend persists due to South America’s high inflation, high interest rates, devaluation of currencies in respect of the dollar, high inventories, and political uncertainty in some countries. This competitive scenario is projected to remain in place for the second quarter.

4

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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:

	03-31-2023 ThU.S.$			03-31-2022 ThU.S.$
Positive (negative) Cash flow
Net cash flows from (used in) operating activities		103,750			465,699
Cash flows from (used in) financing activities:
Obtaining and paying borrowings and bonds		451,424			(19,101	)
Payments of lease liabilities		(13,184	)		(15,941	)
Others		(473	)		(377	)
Cash flows from (used in) investment activities:
Purchase and sale of property, plant and equipment		(222,862	)		(325,972	)
Purchase and sale of biological assets		(106,685	)		(65,583	)
Purchase and sale of intangible assets		(1,371	)		(1,066	)
Others		144			(1,097	)
Positive (negative) net cash flow		210,743			36,562

Our cash flow from operating activities decreased to MU.S.$ 104 for the current period (compared to the positive balance of MU.S.$ 466 for the same period in 2022), resulting mainly from an increase in suppliers payments, which was partially offset by a lower revenue from customer collections in the current period.

The cash flow from financing activities shows a positive balance of MU.S.$ 438 for the current period (compared to the negative balance of MU.S.$ 35 for the same period in 2022). This results mainly from an increase in short-term borrowings.

Regarding the cash flow from investment activities, the balance decreased to MU.S.$ 331 (compared to a negative balance of MU.S.$ 394 for the same period of 2022), mainly due to a decrease in payments for purchases of property, plant and equipment, which was partially offset by an increase in payments for purchases related to forest plantations.

5. MARKET RISK ANALYSIS

In respect of the economic risks resulting from interest rate variations, the Company maintains, as of March 31, 2023, a ratio of fixed rate debt to total consolidated debt of approximately 96.9%, 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 March 31, 2023, include a detailed analysis of the risks associated with the business of Arauco (see Note 23).

5

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

		03-31-2023		12-31-2022
	Note	ThU.S.$		ThU.S.$
Assets
Current assets
Cash and cash equivalents	5-23		872,813		667,207
Other current financial assets	23		27,591		15,350
Other current non-financial assets	25		258,646		206,059
Trade and other current receivables	23		853,093		873,295
Accounts receivable from related companies	13-23		3,376		7,563
Current inventories	4		1,527,226		1,470,011
Current biological assets	20		349,721		330,435
Current tax assets	6		193,182		203,722
Total current assets other than assets or disposal groups classified as held for sale			4,085,648		3,773,642
Non-current assets or disposal groups classified as held for sale	22		175		1,279
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners			175		1,279
Total current assets			4,085,823		3,774,921
Non-current assets
Other non-current financial assets	23		108,549		63,321
Other non-current non-financial assets	25		114,468		92,514
Non-current receivables	23		38,513		32,674
Investments accounted for using equity method	15-16		385,208		365,671
Intangible assets other than goodwill	19		70,690		73,439
Goodwill	17		55,163		54,800
Property, plant and equipment	7		9,599,271		9,542,335
Right of use assets	8		318,292		306,487
Non-current biological assets	20		2,834,844		2,864,935
Deferred tax assets	6		11,427		9,011
Total non-current assets			13,536,425		13,405,187
Total assets			17,622,248		17,180,108

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

6

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)

	Note	03-31-2023 ThU.S.$			12-31-2022 ThU.S.$
Equity and liabilities
Liabilities
Current liabilities
Other current financial liabilities	23		725,438			375,451
Current lease liabilities	8-23		36,349			36,784
Trade and other current payables	23		755,069			812,838
Accounts payable to related companies	13-23		18,888			14,280
Other short-term provisions	18		10,088			9,513
Current tax liabilities	6		18,046			26,869
Current provisions for employee benefits	10		8,177			7,571
Other current non-financial liabilities	25		349,016			242,978
Total current liabilities other than liabilities included in disposal groups classified as held for sale			1,921,071			1,526,284
Total current liabilities			1,921,071			1,526,284
Non-current liabilities
Other non-current financial liabilities	23		5,392,532			5,155,371
Non-current lease liabilities	8-23		256,378			227,440
Non-current payables			21,897			20,116
Non-current accounts payable to related companies	23		6,731			6,731
Other long-term provisions	18		30,531			40,706
Deferred tax liabilities	6		1,700,941			1,785,915
Non-current provisions for employee benefits	10		94,941			87,689
Other non-current non-financial liabilities	25		70,629			69,872
Total non-current liabilities			7,574,580			7,393,840
Total liabilities			9,495,651			8,920,124
Equity
Issued capital	3		803,618			803,618
Retained earnings			8,354,019			8,500,901
Other reserves			(1,035,924	)		(1,049,724	)
Equity attributable to parent company			8,121,713			8,254,795
Non-controlling interests			4,884			5,189
Total equity			8,126,597			8,259,984
Total equity and liabilities			17,622,248			17,180,108

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

7

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

		January – March
	Note	2023 ThU.S.$			2022 ThU.S.$
Statements of profit or loss
Revenue	9		1,439,471			1,761,624
Cost of sales	3		(1,034,011	)		(1,003,150	)
Gross profit			405,460			758,474
Other income	3		75,596			82,763
Distribution costs	3		(160,920	)		(233,976	)
Administrative expenses	3		(149,849	)		(140,767	)
Other expense by function	3		(208,979	)		(27,848	)
Profit from operating activities			(38,692	)		438,646
Finance income	3		22,777			13,331
Finance costs	3		(80,146	)		(47,019	)
Share of profit (loss) of associates and joint ventures accounted for using equity method	3-15		7,863			19,712
Gains (losses) on exchange differences on translation			(23,696	)		(18,980	)
Profit before income tax			(111,894	)		405,690
Income tax expense	6		57,592			(76,630	)
Net profit			(54,302	)		329,060
Net profit attributable to
Net profit attributable to parent company			(54,163	)		329,050
Net profit (loss) attributable to non-controlling interests			(139	)		10
Net profit			(54,302	)		329,060
Basic and diluted earnings per share (in U.S.$ per share)
Basic and diluted earnings per share from continuing operations			(0.4495812	)		2.7312868
Basic and diluted earnings per share			(0.4495812	)		2.7312868

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

8

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

			January - March
	Note		2023 ThU.S.$			2022 ThU.S.$
Net profit				(54,302	)		329,060
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		(252	)		(529	)
Other comprehensive income that will not be reclassified to profit or loss before tax				(252	)		(529	)
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		41,542			129,910
Other comprehensive income before tax exchange differences on translation				41,542			129,910
Cash flow hedges
Gains (losses) on cash flow hedges, before tax		23		(40,398	)		107,321
Other comprehensive income before tax cash flow hedges				(40,398	)		107,321
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				878			3,950
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				878			3,950
Other Comprehensive income that will be reclassified to profit or loss before tax				2,022			241,181
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				68			70
Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss before tax				68			70
Income tax relating to components of other comprehensive income that will be reclassified to profit or loss before tax
Income tax relating to cash flow hedges of other comprehensive income		6		12,162			(23,397	)
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				(345	)		(829	)
Income tax relating to components of other comprehensive income that will be reclassified to profit or loss				11,817			(24,226	)
Other comprehensive income (loss)				13,655			216,496
Total comprehensive income (loss)				(40,647	)		545,556
Comprehensive income (loss) attributable to
Comprehensive income (loss), attributable to owners of parent company				(40,363	)		545,506
Comprehensive income (loss), attributable to non-controlling interests				(284	)		50
Total comprehensive income (loss)				(40,363	)		545,556

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

9

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

03-31-2023	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		—		—			—			—			—		—			(54,163	)		(54,163	)		(139	)		(54,302	)
Other comprehensive income, net of tax		—		41,687			(28,236	)		(184	)		533		13,800			—			13,800			(145	)		13,655
Comprehensive income		—		41,687			(28,236	)		(184	)		533		13,800			(54,163	)		(40,363	)		(284	)		(40,647	)
Dividends		—		—			—			—			—		—			(92,719	)		(92,719	)		(21	)		(92,740	)
Changes in equity		—		41,687			(28,236	)		(184	)		533		13,800			(146,882	)		(133,082	)		(305	)		(133,387	)
Closing balance at 03-31-2023		803,618		(1,055,642	)		(38,348	)		(35,558	)		93,624		(1,035,924	)		8,354,019			8,121,713			4,884			8,126,597

03-31-2022	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 01-01-2022		803,618		(1,155,195	)		(136,859	)		(20,766	)		71,750		(1,241,070	)		8,248,185			7,810,733			7,771			7,818,504
Changes in Equity:
Comprehensive income
Net profit		—		—			—			—			—		—			329,050			329,050			10			329,060
Other comprehensive income, net of tax		—		129,870			83,924			(459	)		3,121		216,456			—			216,456			40			216,496
Comprehensive income		—		129,870			83,924			(459	)		3,121		216,456			329,050			545,506			50			545,556
Dividends		—		—			—			—			—		—			(201,608	)		(201,608	)		(398	)		(202,006	)
Changes in equity		—		129,870			83,924			(459	)		3,121		216,456			127,442			343,898			(348	)		343,550
Closing balance at 03-31-2022		803,618		(1,025,325	)		(52,935	)		(21,225	)		74,871		(1,024,614	)		8,375,627			8,154,631			7,423			8,162,054

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

10

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

	January - March
	2023			2022
	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		1,631,207			1,805,538
Receipts from rents and subsequent sales of such assets		1,933			456
Other cash receipts from operating activities		122,782			141,360
Classes of cash payments
Payments to suppliers for goods and services		(1,347,136	)		(1,184,072	)
Payments to and on behalf of employees		(224,814	)		(187,359	)
Other cash payments from operating activities		(34,478	)		(30,882	)
Interest paid		(45,703	)		(39,527	)
Interest received		26,896			10,157
Income taxes (paid) refunded		(27,031	)		(51,824	)
Other inflows (outflows) of cash, net		94			1,852
Net cash flow from (used in) operating activities		103,750			465,699
Cash flows from (used in) investing activities
Loans to related entities		—			(1,202	)
Proceeds from sales of property, plant and equipment		882			11,166
Purchase of property, plant and equipment		(223,744	)		(337,138	)
Proceeds from sales of intangible assets		—			311
Purchase of intangible assets		(1,371	)		(1,377	)
Proceeds from other long-term assets		2,783			20,983
Purchase of other long-term assets		(109,468	)		(86,566	)
Other inflows (outflows) of cash, net		144			105
Cash flows from (used in) investing activities		(330,774	)		(393,718	)
Cash flows from (used in) financing activities
Total proceeds from borrowings		590,372			9,960
Proceeds from long-term borrowings		128,655			9,960
Proceeds from short-term borrowings		461,717			—
Repayments of borrowings		(138,948	)		(29,061	)
Payments of lease liabilities		(13,184	)		(15,941	)
Other inflows (outflows) of cash, net		(473	)		(377	)
Cash flows from (used in) financing activities		437,767			(35,419	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes		210,743			36,562
Effect of exchange rate changes on cash and cash equivalents		(5,137	)		17,716
Net increase (decrease) of cash and cash equivalents		205,606			54,278
Cash and cash equivalents, at the beginning of the period		667,207			1,011,100
Cash and cash equivalents, at the end of the period		872,813			1,065,378

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

11

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2023, AND DECEMBER 31, 2022

NOTE 1. PRESENTATION OF INTERIM 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, which was registered in the Securities Registry (the “Registry”) of the Chilean Commission for the Financial Market (“CMF”) as No. 042 on June 14, 1982. 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^th floor, Las Condes, Santiago, Chile.

Arauco is principally engaged in the production and sale of products related to the forestry and timber industries. Its main operations are focused on business areas of pulp and wood products.

As of March 31, 2023, 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 interim consolidated financial statements were prepared on a going concern basis.

Presentation of interim consolidated financial statements

The interim consolidated financial statements presented by Arauco are comprised by the following:

• Interim consolidated statements of financial position as of March 31, 2023, and December 31, 2022.

• Interim consolidated statements of profit or loss for the periods ended March 31, 2023, and March 31, 2022.

• Interim consolidated statements of comprehensive income for the periods ended March 31, 2023, and March 31, 2022.

• Interim consolidated statements of changes in equity for the periods ended March 31, 2023, and March 31, 2022.

• Interim consolidated statements of cash flows for the periods ended March 31, 2023, and March 31, 2022.

• Explanatory disclosures (notes).

12

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

Period Covered by the interim consolidated financial statements

Periods ended March 31, 2023 and 2022, and December 2022.

Date of Approval of the interim consolidated financial statements

These interim consolidated financial statements were approved by the Board of Directors of the Company (the “Board”) at the Extraordinary Meeting No. 688 on May 11, 2023.

Abbreviations used in this report:

IFRS - International Financial Reporting Standards

IASB - International Accounting Standards Board

IAS - International Accounting Standards

IFRIC - International Financial Reporting Standards Interpretations Committee

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

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 interim consolidated financial statements is the U.S. dollar. Figures on these interim consolidated financial statements are presented in thousands of U.S. dollar (ThU.S.$).

13

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

Summary of significant accounting policies

a) Basis for preparation of the interim consolidated financial statements

These interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and they represent the explicit and unreserved adoption of IFRS.

The interim 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.

b) Critical accounting estimates and judgments

The preparation of these interim 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 interim 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.

14

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

c) Consolidation

The interim consolidated financial statements include all entities over which Arauco has the power to direct the relevant financial and operating activities. Subsidiaries are consolidated from the date on which control is obtained and up to the date that control ceases.

Specifically, a company controls an investee or subsidiary if, and only if, they have all of the following:

(a) power over the investee, i.e. the investor has existing rights which give it the ability to direct the relevant activities (the activities that significantly affect the investee’s returns);

(b) exposure or rights to variable returns from involvement with the investee; and

(c) the ability to use power over the investee to affect the amount of the investor’s returns.

When Arauco holds less than the majority of the voting rights in a company in which it participates, it nonetheless has the power over said company - when these voting rights are enough - to grant it in practice the ability to unilaterally direct said company’s relevant activities. Arauco takes into account all facts and circumstances in order to assess if the voting rights in a company in which it participates are enough for granting it the power, including:

a) the size of the investor’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

b) potential voting rights held by the investor, other vote holders or other parties;

c) rights arising from other contractual arrangements; and

d) any additional facts and circumstances that indicate the investor has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

The Company will reevaluate whether or not it holds control of a company in which participates if the facts and circumstances indicate that changes have occurred in one or more of the three elements of control mentioned above.

Consolidation of an investee shall begin from the date the investor obtains control of the investee and cease when the investor loses control of the investee. An entity includes the income and expenses of an acquired or sold subsidiary in the interim 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 interim consolidated financial statements for transactions and other events in similar circumstances, appropriate adjustments are made to the interim consolidated financial statements of subsidiaries in order to ensure compliance with Arauco’s accounting policies.

15

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

All intercompany transactions and unrealized gains and losses from subsidiaries have been fully eliminated from these interim consolidated financial statements and non-controlling interest is presented in the consolidated statement of financial position within equity.

The interim 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).

A parent company 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.

d) Segments

Arauco has defined its reportable segments according to its business areas, based on the products and services sold to its customers. This definition is consistent with the management, resource allocation and performance assessment made by key personnel responsible for making relevant decisions related to the Company’s operation. The personnel responsible for making such decisions 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.

e) Functional currency

(i) Functional currency

All items in the financial statements of Arauco and each of its subsidiaries, associates and jointly controlled entities are measured using the currency of the primary economic environment in which each entity operates (the functional currency). The interim consolidated financial statements are presented in U.S. dollars, which is Arauco’s functional and presentation currency.

16

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

(ii) Translation to the presentation currency of Arauco

For the purposes of presenting interim consolidated financial statements, assets and liabilities of Arauco’s operations in a functional currency different from Arauco’s are translated into U.S. dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange rate differences are recognized in other comprehensive income and accumulated in “Other reserves” within–equity.

(iii) Foreign Currency Transactions

Transactions in currencies other than the functional currency are recognized at the exchange rates prevailing at the dates of the transactions. Profit or loss on transactions in currencies other than the functional currency resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognized in the consolidated statements of profit or loss, except those which are recorded in other comprehensive income and accumulated in equity such as cash flows hedging derivatives.

f) Cash and cash equivalents

Cash and cash equivalents include cash-on-hand, deposits held on demand at financial entities and other short-term highly liquid investments with an original maturity of three months or less and which are subject to an insignificant risk of changes in value.

g) Financial Instruments

Financial assets

Initial classification

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

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.

17

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

(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 interests (“SPPI”) over the amount of the outstanding principal.

Subsequent measurement

Financial instruments are subsequently measured at fair value through profit or loss or amortized cost.

The classification is based on two criteria: i) the Company’s business model for the management of financial instruments, and ii) whether the contractual cash flows related to the financial instruments represent “Solely Payments of Principal and Interests”.

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 interests 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.

18

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

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.

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.

19

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

h) Derivative financial instruments

(i) Derivative financial instruments - The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps, currency swaps and zero cost collar contracts. The Company’s policy is to enter into derivatives contracts only for economic hedging purposes and 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.

• 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.

20

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecasted transaction is ultimately recognized in profit or loss. When a forecasted transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

i) Inventories

Inventories are measured at the lower of cost or net realizable value. Cost is determined using the weighted average cost method.

The cost of finished and in process products includes the cost of raw materials, direct labor, other direct costs and manufacturing overhead expenses.

Initial costs of harvested wood are determined at fair value less cost of sale at the point of harvest.

Biological assets are transferred to inventories when forests are harvested.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

When market conditions result in the production costs of a product exceeding its net realizable value, the inventories are written-down to their net realizable value. This write-down also includes obsolescence amounts resulting 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.

j) Non-current assets held for sale

Arauco classifies certain property, plant and equipment, intangible assets, investments in associates and disposal groups (groups of assets to be sold together with their directly associated liabilities) as non-current assets held for sale which as of the date of the consolidated statements of financial position are the subject of active sale efforts which are estimated to be highly probable.

These assets or disposal groups are measured at the lower of the carrying amount or the fair value less the costs to sell, and are no longer depreciated or amortized from the time they are classified as non-current assets held for sale.

21

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

k) Business Combinations

Arauco applies the acquisition method to account for a business combination. This method requires the identification of the acquirer, determination of the acquisition date, recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree; and recognition and measurement of goodwill or a gain from a bargain purchase. Identifiable assets acquired and liabilities assumed and any contingent liabilities in a business combination are initially measured at fair value at the acquisition date, except:

• deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 Income taxes and IAS 19 respectively;

• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 3 at the acquisition date; and

• assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current assets held for sale and discontinued operations are measured in accordance with such standard.

Acquisition-related costs are accounted for as expenses when they are incurred, except for costs to issue debt or equity securities which are recognized in accordance with IAS 32 and IFRS 9.

A parent will present non-controlling interests in the consolidated statement of financial position within equity, separately from the equity of the owners of the parent company.

Changes in the ownership interest of a parent in its subsidiary that do not result in a loss of control are treated as equity transactions. Any difference between the amount by which non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the parent company. No adjustment is made to the carrying amount of goodwill, neither gains nor losses are recognized in the statement of profit or loss.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may initially be measured either at fair value or at the present ownership instruments’ proportionate share of non-controlling interests, in the recognized amounts of the acquirer’s identifiable net assets. The choice is made on a transaction-by-transaction basis.

Arauco measures the fair value of the acquired company in the business combination achieved in each stage (“step acquisition”), recognizing the effects of remeasurement of previously held equity in the acquiree in the consolidated statements of profit or loss.

22

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

If the initial accounting for a business combination is not completed by the end of the reporting period in which the combination occurs, Arauco reports preliminary amounts for the items for which the accounting is incomplete. During the measurement period (no more than one year), these preliminary amounts are retrospectively adjusted, or additional assets or liabilities are recognized to reflect new information about facts and circumstances that existed at the acquisition date, if known, would have affected the amounts recognized at that date.

Business combinations that are under common control transactions are accounted using as a reference the pooling of interest. Under this method, assets and liabilities related to the transaction carry over the previous carrying values. Any difference between assets and liabilities included in the consolidation and the consideration transferred, is accounted in equity.

l) Investments in associates and joint arrangements

Associates are entities over which Arauco exercises significant influence, but not control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Joint arrangement is defined as an entity over which there is joint control, which exists only when the decisions about strategic of activities, both financial and operational, require the unanimous consent of the parties sharing control.

Investments in joint arrangements are classified as a joint venture or as a joint operation. A joint operation is a joint arrangement in which the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement in which the parties that have joint control of the arrangement (i.e., participants in a joint venture) have rights to the net assets of the arrangement.

Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. Their carrying amount is increased or decreased to recognize the portion corresponding to the statement of profit or loss or to the statement of comprehensive income. Dividends received are recognized by deducting the amount received from the carrying amount of the investment. Arauco’s investment in associates includes goodwill (both net of any accumulated impairment loss).

The investments in joint operations are recognized through consolidation of assets, liabilities and results of operations in relation to Arauco’s ownership percentage.

If the acquisition cost is lower than the fair value of the net assets of the associate acquired, the difference is recognized directly in statement of profit or loss in line other gains (losses).

Investments in associates and joint ventures are presented in the consolidated statement of financial position in the line item “Investments accounted for using equity method”.

23

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

If Arauco’s share of losses of an associate or joint venture equals or exceeds its interest in the associate or joint venture, Arauco discontinues recognizing its share of further losses. After Arauco’s carrying value in the investee is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that Arauco has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, Arauco resumes recognizing its share of those profits only after its share of the profits equals the share of losses not recognized.

m) Intangible assets other than goodwill

After initial recognition, intangible assets with finite useful lives are carried at cost less any accumulated amortization and impairment losses.

Amortization of an intangible asset with a finite useful life is allocated over the asset’s useful life. Amortization begins when the asset is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

(i) Computer Software

Computer software licenses are capitalized in terms of the costs incurred to acquire and make them compatible with existing software. These costs are amortized over the estimated useful lives of the software.

(ii) Water Rights, Easements and Other Rights

This item includes water rights, easements 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 and trade relations with customers

Correspond to the valuation over the time of the established relationship with customers, from the sale of products and services through its sales team. These relations will materialize in sales orders, which generate revenue and cost of sales. The useful life has been determined to be 15 years.

n) Goodwill

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquired company, and the fair value of the acquirer’s previously held equity interest in the acquired company (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the statements of profit or loss.

Goodwill is not amortized but tested for impairment on annual basis.

24

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

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 financial statements, are translated into U.S. dollars at the closing exchange rate.

o) Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment. The cost includes expenditures that are directly attributable to the acquisition of the assets.

Subsequent costs, such as improvements and replacement of components, are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to Arauco and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized from property, plant and equipment. All other repairs and maintenance costs are expensed in the period in which they are incurred.

Arauco capitalizes borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets as part of the cost of those assets, until the assets are ready for their intended use (See Note 12).

Depreciation is calculated by components using the straight-line method.

The useful lives of the items of property, plant and equipment is estimated according to the expected use of the assets. The residual values and useful lives of assets are reviewed and adjusted, if appropriate, annually.

p) Leases

Arauco applies IFRS 16 for recognizing leases in a manner consistent with contracts with similar features and akin circumstances.

At the beginning of a contract, Arauco assesses whether the contract is, or if it contains, a lease. A contract is, or contains, a lease if it transfers the right to control the use of a given asset for a certain period of time, in exchange for consideration.

As of the initial date for recording a lease, Arauco, as lessee, recognizes an asset by the right of use at cost.

25

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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.

26

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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.

q) Biological Assets

IAS 41 requires that biological assets, such as standing trees, are measured at fair value less cost to sell in the statement of financial position. Forestry plantations are accounted for at fair value less costs to sell, based on the presumption that fair values of these assets can be measured reliably.

The measurement of the fair value of the biological assets is determined using a discounted cash flow model. Our cash flow projections include significant judgments and assumptions relating to discount rates, estimated growth of the forests and sales margins. This valuation is performed on the basis of each identifiable farm block and for each type of tree.

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.

r) Income taxes

The tax liabilities are recognized in the consolidated financial statements based on the determination of taxable income for the year and calculated using the tax rates in force in the countries where Arauco operates.

Deferred income tax is recognized using liability method, on the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated annual accounts. Deferred income tax is determined using tax rates contained in laws adopted as of the date of the financial statements and that are expected to be applicable when the related deferred tax asset is realized, or the deferred income tax liability is settled.

Deferred taxes are recognized in accordance with the standards established in IAS 12 - Income Tax.

The goodwill arising on business combinations does not give rise to deferred tax.

The deferred tax assets and tax credits are generally recognized for all deductible temporary differences to the extent that it is probable that future taxable profit will be available against which those deductible temporary differences can be utilized.

27

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

s) Provisions

Provisions are recognized when the Company has a present obligation, legal or constructive, as a result of past events, under which, it is probable that an outflow of resources will be required to settle the obligation; and when a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period.

t) 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.

28

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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.

u) Minimum dividend

Article No. 79 of the Chilean Corporations Law states that, unless otherwise unanimously agreed by the shareholders, corporations must distribute annually at least 30% of net income for the current year as cash dividend to shareholders determined in proportion to their shares or in the proportion established in the by-laws for preferred shares, if any, except where necessary to absorb accumulated losses from prior years.

29

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

The current policy is that an amount equivalent to the 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.

v) Earning per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to 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.

w) 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 exists 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.

30

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

A cash-generating unit, for which goodwill has been allocated, is tested for impairment annually or more frequently when there are circumstances indicating that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to other assets pro rata based on the carrying amount of each asset in the unit. Any impairment loss of goodwill is recognized directly in the consolidated statement of profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

Goodwill is allocated to cash-generating units for impairment testing purposes. The allocation is made between cash-generating units or groups of cash generating units expected to benefit from the synergies of the combination.

Financial Assets

At the end of each reporting period, an assessment is performed in order to identify whether there is any objective evidence that a financial asset or a group of financial assets may have been impaired.

An allowance for doubtful accounts is established based on a measurement of expected losses using a simplified approach.

The allowance for doubtful accounts is measured as the difference between the carrying amount of receivables and the present value of estimated future cash flows. The carrying amount of the receivable is reduced through the use of the allowance. If the impairment loss decreases in later periods, it is reversed either directly or by adjusting the provision for doubtful accounts, with effect in profit or loss.

x) 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.

31

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

y) 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.

z) Recent accounting pronouncements

a) Standards, interpretations and amendments that are mandatory for the first time for annual periods beginning on January 1, 2023:

Amendments and improvements	Content	Mandatory application for annual periods beginning on or after
IAS 1 and IAS 8	To IAS 1, Practice statement 2 and IAS 8, aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.	January 1, 2023
IAS 12	Deferred tax related to assets and liabilities arising from a single transaction Require companies to recognize deferred tax on transactions that, on initial recognition give rise to equal amounts of taxable and deduct able temporary differences.	January 1, 2023

The adoption of the standards, amendments and interpretations described in the table above do not have 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 1	Presentation of Financial Statements Clarifies that liabilities will be classified as current or non-current depending on the rights at the end of the reporting period. The amendment also clarifies what IAS 1 means when it refers to the ‘settlement’ of a liability.	January 1, 2024
IAS 1	Non-current liabilities with covenants Clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability.	January 1, 2024
IFRS 16	Leases on sale and leaseback 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.	January 1, 2024

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.

32

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

NOTE 2. ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES

Changes to accounting policies

As of March 31, 2023, there have been no changes in the accounting policies with respect to the 2022 financial year.

Changes to accounting estimates

As of March 31, 2023, there have been no changes in the methodologies for calculating the accounting estimates with respect to the 2022 financial year.

NOTE 3. DISCLOSURE OF OTHER INFORMATION

a) Disclosure of information on Issued Capital

As of March 31, 2023, the shareholders composition according to the amount of shares owned is as follows:

Shareholders	Shares		%
Empresas Copec S.A.		120,474,249		99.99991616	%
AntarChile S.A.		101		0.00008384	%
		120,474,350		100.00000000	%

At the date of these interim consolidated financial statements the share capital of Arauco is ThU.S.$ 803,618.

100% of Capital corresponds to ordinary shares.

	03-31-2023		12-31-2022
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		120,474,350		120,474,350
Nominal value of shares by type of capital in ordinary shares		U.S.$ 6.6704 per share		U.S.$ 6.6704 per share
Amount of capital in shares by type of ordinary shares that constitute capital		ThU.S.$ 803,618		ThU.S.$ 803,618
	03-31-2023		12-31-2022
Number of shares issued and fully paid by type of capital in ordinary shares		120,474,350		120,474,350

b) Dividends paid

As of March 31, 2023, no dividends were paid.

In December 2022 a provisional dividend of ThU.S.$ 183,971 was paid with a charge to the profits of the year 2022, which represents 20% of the distributable net profit as of September 30, 2022.

In May 2022 a dividend of ThU.S.$ 192,132 was paid with a charge to the profits of the year 2021. In November 2021 a provisional dividend of ThU.S.$ 271,000 was paid with a charge to the profits of the same year.

33

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

The amount of ThU.S.$ 92,719 presented in the interim consolidated statement of changes in equity for the year ended December 31,2022, contains the minimum dividend provision of an additional and extraordinary 10% to be paid for the profits of the parent company of 2022, approved in April 2023. As of March 31, 2023, there is no minimum dividend provision for the 2023 losses.

See Note 26 for details.

Dividends paid detail, ordinary shares
Dividends paid	Definitive dividend
Classes of shares for which there are dividends paid	Ordinary shares without series
Date of dividends paid	12-14-2022
Amount of dividends	ThU.S.$ 183,971
Number of shares on which pay dividends	120,474,350
Dividend per shares	U.S.$ 1.527060
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	05-10-2022
Amount of dividends	ThU.S.$ 192,132
Number of shares on which pay dividends	120,474,350
Dividend per shares	U.S.$ 1.594799

c) Disclosure of Information on Reserves

Other reserves comprise reserves of exchange differences on translation, reserves of cash flow hedges and other reserves. Arauco does not have any restrictions associated with these reserves.    

Reserves of exchange differences on translation

Reserves of exchange differences on translation correspond to exchange differences relating to the translation of the results and net assets of Arauco’s subsidiaries whose functional currency is other than Arauco’s presentation currency.

Reserves of cash flow hedges

The hedging reserve includes the cash flow hedge reserve and the costs of hedging reserve. The cash flow hedge reserve is used to recognize the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges.

Reserve of Actuarial Losses in Defined Benefit Plans

This corresponds to changes in the present value of the obligation for defined benefits resulting from experience adjustments (the effect of the differences between the previous actuarial assumptions and the events that occurred within the context of the plan) and the effects of the changes in the actuarial assumptions.

Other reserves

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

34

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

d) Other items in the consolidated statements of profit or loss

The table below sets forth other income, other expenses, finance income, finance costs and share of profit (loss) of associates and joint ventures for the periods ended March 31, 2023 and 2022 are as follows:

	January - March
	2023			2022
	ThU.S.$			ThU.S.$
Classes of Other Income
Total Other Income		75,596			82,763
Gain from changes in fair value of biological assets (Note 20)		52,622			53,704
Net income from insurance compensation		300			176
Revenue from export promotion		243			329
Lease income		523			527
Gain on sales of assets		2,655			25,808
Compensations received		636			—
Reversal of impairment loss assets		5,300			489
Reimbursement provisions (legal and others)		9,917			—
Other operating income		3,400			1,730
Classes of Other Expenses by function
Total Other Expenses by function		(208,979	)		(27,848	)
Provision legal expenses		(2,310	)		(1,619	)
Impairmert provision for property, plant and equipment, provision for inventory obsolescence, withdrawals and others		(3,524	)		(2,525	)
Operating expenses related to staff restructuring or from plants stoppage or closed		(140,146	)		(1,930	)
Expenses related to projects		(943	)		(3,714	)
Loss of asset sales		(894	)		(1,700	)
Loss and repair of assets		(8,314	)		(18	)
Loss of forest due to fires		(42,868	)		(10,355	)
Other Taxes		(6,468	)		(3,292	)
Research and development expenses		(1,170	)		(1,022	)
Fines, readjustments and interests		(605	)		(38	)
Loss of tax credits		(47	)		(238	)
Other expenses		(1,690	)		(1,397	)
Classes of Finance Income
Total Finance Income		22,777			13,331
Finance income by mutual funds - term deposits		19,443			12,347
Finance income resulting from derivatives		—			39
Other finance income		3,334			945
Classes of Finance Costs
Total Finance Costs		(80,146	)		(47,019	)
Interest expense, Bank borrowings		(12,100	)		(3,599	)
Interest expense, Bonds		(52,291	)		(28,295	)
Interest expense resulting from derivatives		(3,354	)		(4,532	)
Interest expense for right-of-use		(3,126	)		(2,522	)
Other finance costs		(9,275	)		(8,071	)
Share of profit (loss) of associates and joint ventures accounted for using equity method
Total		7,863			19,712
Investments in associates		182			2,432
Investments in joint ventures		7,681			17,280

35

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

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

	January - March
	2023		2022
Cost of sales (*)	ThU.S.$		ThU.S.$
Timber		210,164		147,801
Forestry labor costs and other services		150,831		140,212
Depreciation and amortization		101,066		110,732
Depreciation for right of use		6,707		10,483
Maintenance costs		81,364		81,717
Chemical costs		158,485		178,007
Sawmill costs		26,053		28,628
Other raw materials		64,291		74,943
Other indirect costs		56,010		53,587
Energy and fuel		62,923		60,634
Cost of electricity		14,953		9,687
Staff expenses		101,164		106,719
Total		1,034,011		1,003,150

(*) Total amount is comprised of the cost of inventory sales for ThU.S.$ 1,003,111 as of March 31, 2023 (ThU.S.$ 974,922 as of March 31, 2022) and the cost of rendering services for ThU.S.$ 30,900 as of March 31, 2023 (ThU.S.$ 28,277 as of March 31, 2022).

	January - March
	2023		2022
Distribution costs	ThU.S.$		ThU.S.$
Selling costs		10,001		10,115
Commissions		3,114		3,721
Insurance		1,906		1,464
Provision for doubtful accounts		476		-196
Other selling costs		4,505		5,126
Shipping and freight costs		150,919		223,861
Port services		15,048		15,249
Freights		121,733		194,340
Depreciation for right of use		275		531
Other shipping and freight costs (internment, warehousing, stowage, customs and other costs)		13,863		13,741
Total		160,920		233,976

	January – March
	2023		2022
Administrative expenses	ThU.S.$		ThU.S.$
Wages and salaries		65,770		62,412
Marketing, advertising, promotion and publications expenses		3,203		3,876
Insurances		10,041		6,411
Depreciation and amortization		8,290		8,465
Depreciation for right of use		1,781		1,902
Computer services		6,954		5,532
Lease of offices, other property and vehicles		1,859		1,521
Donations, contributions, scholarships		1,993		2,098
Fees (legal and technical advisors)		8,273		6,445
Property taxes, city permits and rights		6,420		5,911
Cleaning services, security services and transportation		7,122		7,402
Third-party variable services (maneuvers, logistics)		11,262		13,245
Basic services (electricity, telephone, water)		2,122		1,865
Maintenance and repair		2,190		1,806
Seminars, courses, training materials		686		1,040
Travels, clothing and safety equipment, environmental expenses, audits and others		11,883		10,836
Total		149,849		140,767

36

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

NOTE 4. INVENTORIES

	03-31-2023		12-31-2022
Components of inventory	ThU.S.$		ThU.S.$
Raw materials		232,169		199,174
Production supplies		195,635		209,396
Work in progress		70,579		70,625
Finished goods		792,017		769,558
Spare parts		236,826		221,258
Total inventories		1,527,226		1,470,011

Inventories recognized as cost of sales as of March 31, 2023 were ThU.S.$ 1,003,111 (ThU.S.$ 974,922 as of March 31, 2022).    

In order to have inventories recorded at net realizable value, inventories are subject of evaluations and obsolescence provision recognition as of March 31, 2023, a net decrease of inventories was recognized associated with a higher provision of ThU.S.$ 4,358 (ThU.S.$ 2,884 as of March 31, 2022). As of March 31, 2023, the amount of provision is ThU.S.$ 81,728 (ThU.S.$ 77,370 as of December 31, 2022).

As of March 31, 2023, there were inventory write-offs of ThU.S.$ 1,181 (ThU.S.$ 481 as of March 31, 2022) which are presented in the interim 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 interim consolidated financial statements, no inventories were pledged as security.

37

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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 interim consolidated financial statements, there are no amounts of cash and cash equivalents with restrictions on use.

	03-31-2023		12-31-2022
Components of Cash and Cash Equivalents	ThU.S.$		ThU.S.$
Cash on hand		89		64
Balances with Banks		464,831		298,513
Short-term deposits		236,998		258,566
Mutual funds		125,570		110,064
Repurchase agreements		45,325		—
Total		872,813		667,207

The risk classification of the Company’s mutual funds as of March 31, 2023 and December 31, 2022 is shown below.    

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
AAAfm		36,625		24,933
No classification		88,945		85,131
Total Mutual Funds		125,570		110,064

Changes in Financial Liabilities

		03-31-2023
		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
	(+) Borrowings obtained		590,372			—			—			590,372
	(-) Borrowings paid		(138,948	)		—			—			(138,948	)
Cash flows	(-) Commissions paid		(473	)		—			—			(473	)
	(-) Interest paid		(7,734	)		(288	)		(34,625	)		(42,647	)
(+) Accrued interest			13,132			271			50,389			63,792
(+/-) Inflation adjustment			7,018			—			109,526			116,544
(+/-) Changes in fair value			—			(9,648	)		—			(9,648	)
(+/-) Other movements			6,201			—			1,955			8,156
Closing balance			1,410,245			67,021			4,640,704			6,117,970

38

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

		12-31-2022
		Bank borrowings			Hedging liabilities			Bonds and promissory notes			Other financial liabilities, Total
		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance January 1			991,956			296,316			4,426,033			5,714,305
	(+) Borrowings obtained		318,357			—			—			318,357
	(-) Borrowings paid		(347,459	)		(9,578	)		(40,940	)		(397,977	)
Cash flows	(-) Commissions paid		(1,656	)		—			—			(1,656	)
	(-) Interest paid		(18,450	)		(37,141	)		(193,737	)		(249,328	)
(+) Accrued interest			22,679			37,039			194,200			253,918
(+/-) Inflation adjustment			(29,757	)		—			120,091			90,334
(+/-) Changes in fair value			—			(209,936	)		—			(209,936	)
(+/-) Other movements			5,007			(14	)		7,812			12,805
Closing balance			940,677			76,686			4,513,459			5,530,822

		Lease liabilities
		03-31-2023			12-31-2022
		ThU.S.$			ThU.S.$
Opening balance January 1			264,224			163,304
Cash flows	(-) Borrowings paid		(13,184	)		(65,000	)
	(-) Interest paid		(3,056	)		(9,724	)
(+) Accrued interest			3,128			9,753
(+/-) Inflation adjustment			2,805			839
(+) Increase due to new leases liabilities			35,263			167,370
(+/-) Other movements			3,547			(2,318	)
Closing balance			292,727			264,224

39

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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 26% in the United States (federal tax).

Deferred Tax Assets

The following table sets forth the deferred tax assets as of the dates indicated:

	03-31-2023			12-31-2022
Deferred tax assets	ThU.S.$			ThU.S.$
Deferred tax assets relating to provisions		6,067			8,910
Deferred tax assets relating to accrued liabilities		8,323			8,986
Deferred tax assets relating to post-employment benefits		28,049			25,904
Deferred tax assets relating to property, plant and equipment		49,443			45,919
Deferred tax assets relating to impairment provision		14,232			13,517
Deferred tax assets relating to financial instruments		67,106			53,347
Deferred tax assets relating to tax loss carryforward		194,004			110,526
Deferred tax assets relating to inventories		31,454			20,942
Deferred tax assets relating to provisions for income		8,933			9,941
Deferred tax assets relating to allowance for doubtful accounts		2,597			2,472
Deferred tax assets relating to intangible revaluation		1,243			1,466
Deferred tax assets relating to tax credits		—			8,996
Deferred tax assets relating to other deductible temporary differences		26,305			25,777
Total deferred tax assets		437,756			327,707
Offsetting presentation		(426,329	)		(318,696	)
Net effect		11,427			9,011

Certain subsidiaries of Arauco mainly in Chile, Brazil, Argentina and USA, as of the date of these interim 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.$ 794,810 (ThU.S.$ 443,250 at December 31, 2022), which are mainly originated by operational and financial losses.

In addition, as of the closing date of these interim consolidated financial statements there are ThU.S.$ 116,173 (ThU.S.$ 125,391 at December 31, 2022) of non-recoverable tax losses from subsidiaries in USA and from joint operations in Uruguay, for which deferred tax assets have not been recognized. The estimated recovery period exceeds the expiry date of such tax losses.

40

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

Deferred Tax Liabilities

The following table sets forth the deferred tax liabilities as of the dates indicated:

	03-31-2023			12-31-2022
Deferred tax liabilities	ThU.S.$			ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,417,711			1,415,173
Deferred tax liabilities relating to financial instruments		34,588			33,749
Deferred tax liabilities relating to biological assets		514,440			527,988
Deferred tax liabilities relating to inventory		68,346			56,531
Deferred tax liabilities relating to prepaid expenses		43,271			37,760
Deferred tax liabilities relating to intangible		10,046			10,173
Deferred tax liabilities relating to other taxable temporary differences		38,868			23,237
Total deferred tax liabilities		2,127,270			2,104,611
Offsetting presentation		(426,329	)		(318,696	)
Net effect		1,700,941			1,785,915

The effect of this period in current and deferred tax liabilities related to financial hedging instruments corresponds to a debit of ThU.S.$ 12,162 as of March 31, 2023 (credit of ThU.S.$ 23,397 as of March 31, 2022), which is presented net in reserves for cash flow hedges in the interim consolidated statement of changes in equity.

Reconciliation of deferred tax assets and liabilities

Deferred tax assets	Opening balance 01-01-2023 ThU.S.$		Deferred tax income (expenses) ThU.S.$			Deferred tax of items charged to equity ThU.S.$			Increase (decrease) net exchange differences ThU.S.$			Closing balance 03-31-2023 ThU.S.$
Deferred tax Assets relating to provisions		8,910		(2,984	)		—			141			6,067
Deferred tax Assets relating to accrued liabilities		8,986		(667	)		—			4			8,323
Deferred tax Assets relating to post-employment benefits		25,904		2,094			68			(17	)		28,049
Deferred tax Assets relating to property, plant and equipment		45,919		3,524			—			—			49,443
Deferred tax Assets relating to impairment provision		13,517		469			—			246			14,232
Deferred tax Assets relating to financial instruments		53,347		2,053			11,527			179			67,106
Deferred tax Assets relating to tax loss carryforward		110,526		82,866			—			612			194,004
Deferred tax Assets relating to inventories		20,942		10,507			—			5			31,454
Deferred tax Assets relating to provisions for income		9,941		(966	)		—			(42	)		8,933
Deferred tax Assets relating to allowance for doubtful accounts		2,472		125			—			—			2,597
Deferred tax Assets relating to intangible revaluation		1,466		(259	)		—			36			1,243
Deferred tax Assets relating to other deductible temporary differences		25,777		319			—			209			26,305
Total deferred tax assets		327,707		97,081			11,595			1,373			437,756
Deferred tax liabilities	Opening balance 01-01-2023 ThU.S.$		Deferred tax (income) expenses ThU.S.$			Deferred tax of items charged to equity ThU.S.$			Increase (decrease) net exchange differences ThU.S.$			Closing balance 03-31-2023 ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,415,173		702			—			1,836			1,417,711
Deferred tax liabilities relating to financial instruments		33,749		1,473			(635	)		1			34,588
Deferred tax liabilities relating to biological assets		527,988		(15,523	)		—			1,975			514,440
Deferred tax liabilities relating to inventory		56,531		11,814			—			1			68,346
Deferred tax liabilities relating to prepaid expenses		37,760		5,490			—			21			43,271
Deferred tax liabilities relating to intangible		10,173		(314	)		—			187			10,046
Deferred tax liabilities relating to other taxable temporary differences		23,237		15,370			—			261			38,868
Total deferred tax liabilities		2,104,611		19,012			(635	)		4,282			2,127,270
Deferred tax assets	Opening balance 01-01-2022 ThU.S.$		Deferred tax income (expenses) ThU.S.$			Deferred tax of items charged to equity ThU.S.$			Increase (decrease) net exchange differences ThU.S.$			Closing balance 12-31-2022 ThU.S.$
Deferred tax Assets relating to provisions		5,730		3,051			—			129			8,910
Deferred tax Assets relating to accrued liabilities		8,257		716			—			13			8,986
Deferred tax Assets relating to post-employment benefits		19,738		745			5,403			18			25,904
Deferred tax Assets relating to property, plant and equipment		32,480		13,439			—			—			45,919
Deferred tax Assets relating to impairment provision		8,564		4,664			—			289			13,517
Deferred tax Assets relating to financial instruments		108,910		(8,024	)		(47,883	)		344			53,347
Deferred tax Assets relating to tax loss carryforward		24,972		84,068			—			1,624			110,664
Deferred tax Assets relating to inventories		18,793		2,120			—			29			20,942
Deferred tax Assets relating to provisions for income		19,323		(9,408	)		—			26			9,941
Deferred tax Assets relating to allowance for doubtful accounts		4,625		(2,155	)		—			2			2,472
Deferred tax Assets relating to intangible revaluation		2,301		(1,013	)		—			178			1,466
Deferred tax Assets relating to tax credits		8,996		(8,996	)		—			—			—
Deferred tax Assets relating to other deductible temporary differences		24,328		509			—			802			25,639
Total deferred tax assets		287,017		79,716			(42,480	)		3,454			327,707

41

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

Deferred tax liabilities	Opening balance 01-01-2022 ThU.S.$		Deferred tax (income) expenses ThU.S.$			Deferred tax of items charged to equity ThU.S.$		Increase (decrease) net exchange differences ThU.S.$			Closing balance 12-31-2022 ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,281,546		130,377			—		3,250			1,415,173
Deferred tax liabilities relating to financial instruments		25,334		5,712			2,704		(1	)		33,749
Deferred tax liabilities relating to biological assets		605,166		(80,917	)		—		3,739			527,988
Deferred tax liabilities relating to inventory		46,336		10,272			—		(77	)		56,531
Deferred tax liabilities relating to prepaid expenses		38,088		(337	)		—		9			37,760
Deferred tax liabilities relating to intangible		12,511		(2,648	)		—		310			10,173
Deferred tax liabilities relating to other taxable temporary differences		18,204		4,520			—		513			23,237
Total deferred tax liabilities		2,027,185		66,979			2,704		7,743			2,104,611

Temporary Differences

The following tables summarize the deductible and taxable temporary differences:

	03-31-2023				12-31-2022
	Deductible		Taxable		Deductible		Taxable
	difference		difference		difference		difference
Detail of classes of deferred tax temporary differences	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Deferred tax assets		243,752		—		217,181		—
Deferred tax assets - tax loss carryforward		194,004		—		110,526		—
Deferred tax liabilities		—		2,127,270		—		2,104,611
Total		437,756		2,127,270		327,707		2,104,611

	January – March
	2023			2022
Detail of temporary difference income and loss amounts	ThU.S.$			ThU.S.$
Deferred tax assets		14,215			20,078
Deferred tax assets - tax loss carryforward		82,866			43,018
Deferred tax liabilities		(19,012	)		(57,171	)
Total		78,069			5,925

Income Tax Expense

Income tax expense consists of the following:

	January - March
	2023			2022
Income tax composition	ThU.S.$			ThU.S.$
Current income tax expense		(21,353	)		(78,856	)
Tax benefit arising from tax credit used to reduce current tax expense		1,832			—
Prior period current income tax adjustments		(185	)		(2,944	)
Other current benefit tax (expenses)		(771	)		(755	)
Current tax expense, net		(20,477	)		(82,555	)
Deferred tax expense relating to origination and reversal of temporary differences		(4,797	)		(37,093	)
Tax benefit arising from tax credits used to reduce deferred tax expense		82,866			43,018
Total deferred tax benefit (expense), net		78,069			5,925
Total income tax benefit (expense)		57,592			(76,630	)

The following table presents the current income tax expense detailed by foreign and domestic (Chile) companies at March 31, 2023 and 2022:

	January – March
	2023			2022
	ThU.S.$			ThU.S.$
Foreign current income tax expense		(16,313	)		(28,761	)
Domestic current income tax expense		(4,164	)		(53,794	)
Total current income tax expense		(20,477	)		(82,555	)
Foreign deferred tax benefit (expense)		400			6,347
Domestic deferred tax benefit (expense)		77,669			(422	)
Total deferred tax benefit (expense)		78,069			5,925
Total income tax benefit (expense)		57,592			(76,630	)

42

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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 – March
	2023			2022
Reconciliation of income tax from statutory rate to effective tax rate	ThU.S.$			ThU.S.$
Statutory domestic (Chile) income tax rate		27.0	%		27.0	%
Tax expense at statutory tax rate		30,211			(109,536	)
Tax effect of foreign tax rates		159			(3,421	)
Tax effect of income exempt from taxation		32,241			28,805
Tax effect of not deductible expenses		(6,419	)		(2,777	)
Tax rate effect of previously unrecognized tax loss		(3,271	)		181
Tax effect of a new evaluation of deferred tax assets		316			4,621
Tax effect of tax provided in excess in prior periods		(185	)		(2,944	)
Other tax rate effects (*)		4,540			8,441
Total adjustments to tax expense at applicable tax rate		27,381			32,906
Tax benefit (expense) at effective tax rate		57,592			(76,630	)

(*) This line includes mainly the tax effect generated by exchange differences on translation of tax bases.

Current tax assets and liabilities

The current tax assets and liabilities balances are as follow:

	03-31-2023			12-31-2022
Current tax assets	ThU.S.$			ThU.S.$
Monthly Provisional Payments (MPP)		160,499			21,974
Income tax receivable		150,167			181,705
Provision tax income		(145,289	)		(25,341	)
Other tax receivables		27,805			25,384
Total		193,182			203,722
	03-31-2023			12-31-2022
Current tax liabilities	ThU.S.$			ThU.S.$
Provision tax income (First category)		120,565			256,164
Monthly Provisional Payments (MPP)		(104,404	)		(231,846	)
Other tax payables		1,885			2,551
Total		18,046			26,869

43

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

March 31, 2023

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

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

	03-31-2023			12-31-2022
	ThU.S.$			ThU.S.$
Property, plant and equipment, net
Construction work in progress		521,305			3,592,689
Land		897,145			893,237
Buildings		3,351,679			2,085,868
Plant and equipment		4,583,280			2,760,925
Information technology equipment		42,833			22,642
Fixtures and fittings		22,162			11,017
Motor vehicles		45,115			45,927
Other property, plant and equipment		135,752			130,030
Total net		9,599,271			9,542,335
Property, plant and equipment, gross
Construction work in progress		521,305			3,592,689
Land		897,145			893,237
Buildings		5,809,571			4,510,660
Plant and equipment		9,161,119			7,220,981
Information technology equipment		130,258			108,645
Fixtures and fittings		61,862			49,861
Motor vehicles		99,423			98,126
Other property, plant and equipment		152,233			147,277
Total gross		16,832,916			16,621,476
Accumulated depreciation and impairment
Buildings		(2,457,892	)		(2,424,792	)
Plant and equipment		(4,577,839	)		(4,460,056	)
Information technology equipment		(87,425	)		(86,003	)
Fixtures and fittings		(39,700	)		(38,844	)
Motor vehicles		(54,308	)		(52,199	)
Other property, plant and equipment		(16,481	)		(17,247	)
Total		(7,233,645	)		(7,079,141	)

Description of Property, Plant and Equipment Pledged as Security for Liabilities

As of March 31, 2023, there are no significant assets pledged as collateral to be disclosed in these interim consolidated financial statements.

Disbursements commitments for the acquisition of property, plant and equipment and disbursements for property, plant and equipment under construction.

	03-31-2023		12-31-2022
	ThU.S.$		ThU.S.$
Amount committed for the acquisition of property, plant and equipment		552,341		363,504

44

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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 March 31, 2023 and December 31, 2022:

	Construction work in progress			Land			Buildings			Plant and equipment			IT equipment			Fixtures and fittings			Motor vehicles			Other property, plant and equipment			Total
Reconciliation of Property, Plant and Equipment	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2023		3,592,689			893,237			2,085,868			2,760,925			22,642			11,017			45,927			130,030			9,542,335
Changes
Additions		175,847			113			1,860			2,902			236			38			35			5,649			186,680
Disposals		(18	)		(24	)		—			(89	)		—			—			—			—			(131	)
Withdrawals		—			—			(170	)		(5,156	)		(9	)		—			(831	)		—			(6,166	)
Depreciation		—			—			(46,985	)		(95,769	)		(1,744	)		(873	)		(2,044	)		(319	)		(147,734	)
Impairment loss recognized in profit or loss		—			—			22			(1,432	)		—			—			—			—			(1,410	)
Increase (decrease) through net exchange differences		1,423			3,606			4,658			14,980			64			13			361			392			25,497
Reclassification of assets held for sale		—			137			—			—			—			—			—			—			137
Increase (decrease) through transfers from construction in progress		(3,248,636	)		76			1,306,426			1,906,856			21,644			11,967			1,667			—			—
Reclassification from lease to property, plant and equipment		—			—			—			63			—			—			—			—			63
Total changes		(3,071,384	)		3,908			1,265,811			1,822,355			20,191			11,145			(812	)		5,722			56,936
Closing balance 03-31-2023		521,305			897,145			3,351,679			4,583,280			42,833			22,162			45,115			135,752			9,599,271
	Construction work in progress			Land			Buildings			Plant and equipment			IT Equipment			Fixtures and fittings			Motor vehicles			Other property, plant and equipment			Total
Reconciliation of Property, Plant and Equipment	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2022		2,822,874			888,465			2,165,318			2,915,611			23,516			13,563			13,678			112,641			8,955,666
Changes
Additions		1,076,619			2,003			13,230			26,102			815			808			462			18,115			1,138,154
Disposals		(18	)		(9,747	)		(1,571	)		(2,788	)		(221	)		(273	)		(62	)		(17	)		(14,697	)
Withdrawals		(2,573	)		(391	)		(569	)		(5,319	)		(286	)		(15	)		(80	)		(351	)		(9,584	)
Depreciation		—			—			(132,521	)		(305,572	)		(6,326	)		(3,071	)		(4,477	)		(1,144	)		(453,111	)
Impairment loss recognized in profit or loss		—			—			(25,611	)		(118,026	)		4			(521	)		—			—			(144,154	)
Increase (decrease) through net exchange differences		53			11,769			10,308			36,234			143			82			503			646			59,738
Reclassification of assets held for sale		—			347			68			(437	)		—			—			—			—			(22	)
Increase (decrease) through transfers from construction in progress		(304,266	)		791			57,216			210,682			4,997			444			29,996			140			—
Reclassification from lease to property, plant and equipment		—			—			—			4,438			—			—			5,907			—			10,345
Decrease due to loss of control in subsidiary		—			—			—			—			—			—			—			—			—
Total changes		769,815			4,772			(79,450	)		(154,686	)		(874	)		(2,546	)		32,249			17,389			586,669
Closing balance 12-31-2022		3,592,689			893,237			2,085,868			2,760,925			22,642			11,017			45,927			130,030			9,542,335

45

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The depreciation expense for the period ending March 31, 2023 and 2022 is as follows:

	January - March
	2023		2022
Depreciation for the year	ThU.S.$		ThU.S.$
Cost of sales		101,066		110,732
Administrative expenses		4,765		4,591
Other expenses		29,789		566
Total		135,620		115,889

Depreciation charged to profit or loss statement differs from the movement of the period for Property, Plant and Equipment. This is mainly due to the periodic cost processes in which a portion of the depreciation charge remains in Inventories. Furthermore, this deviation is also affected by the conversion differences corresponding to companies that use a functional currency other than U.S. dollars.

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

See Note 12 for details of capitalized borrowing costs.

46

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 8. LEASES

Arauco acting as lessee

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.

Lease liabilities and their maturity are presented in Notes 11 and 23.

Right of Use Assets

	03-31-2023			12-31-2022
	ThU.S.$			ThU.S.$
Property, plant and equipment by right of use, net
Land		213,982			195,290
Buildings		15,684			16,731
Plant and equipment		65,090			66,709
Information technology equipment		130			157
Motor vehicles		19,130			24,437
Other property, plant and equipment		4,276			3,163
Total net		318,292			306,487
Property, plant and equipment by right of use, gross
Land		253,708			230,231
Buildings		31,171			32,610
Plant and equipment		85,588			86,870
Information technology equipment		475			630
Motor vehicles		176,274			175,261
Other property, plant and equipment		4,913			3,723
Total gross		552,129			529,325
Accumulated depreciation and impairment by right of use
Land		(39,726	)		(34,941	)
Buildings		(15,487	)		(15,879	)
Plant and equipment		(20,498	)		(20,161	)
Information technology equipment		(345	)		(473	)
Motor vehicles		(157,144	)		(150,824	)
Other property, plant and equipment		(637	)		(560	)
Total		(233,837	)		(222,838	)

47

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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 March 31, 2023 and December 31, 2022:

	Land			Buildings			Plant and equipment			IT equipment			Motor vehicles			Other property, plant and equipment			Total
Reconciliation of property, plant and equipment by right of use	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2023		195,290			16,731			66,709			157			24,437			3,163			306,487
Changes
Additions		32,789			289			32			—			871			1,282			35,263
Withdrawals		(14,191	)		—			(242	)		—			—			—			(14,433	)
Depreciation		(4,373	)		(1,361	)		(1,433	)		(34	)		(6,250	)		(106	)		(13,557	)
Increase (decrease) through net exchange differences		4,467			39			24			5			72			—			4,607
Reclassification from lease to Property, plant and equipment		—			—			—			—			—			(63	)		(63	)
Increase (decrease) through others		—			(14	)		—			2			—			—			(12	)
Total changes		18,692			(1,047	)		(1,619	)		(27	)		(5,307	)		1,113			11,805
Closing balance 03-31-2023		213,982			15,684			65,090			130			19,130			4,276			318,292

	Land			Buildings			Plant and equipment			IT equipment			Fixtures and fittings			Motor vehicles			Other property, plant and equipment			Total
Reconciliation of property, plant and equipment by right of use	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2022		72,384			20,682			17,198			224			218			55,093			14,307			180,106
Changes
Additions		135,407			2,531			56,720			148			—			7,827			305			202,938
Withdrawals		—			(1,101	)		(15	)		—			(203	)		(4	)		—			(1,323	)
Depreciation		(12,660	)		(5,400	)		(7,174	)		(229	)		(15	)		(38,596	)		(1,334	)		(65,408	)
Increase (decrease) through net exchange differences		159			22			8			14			—			117			—			320
Reclassification from lease to Property, plant and equipment		—			—			—			—			—			—			(10,346	)		(10,346	)
Increase (decrease) through others		—			(3	)		(28	)		—			—			—			231			200
Total changes		122,906			(3,951	)		49,511			(67	)		(218	)		(30,656	)		(11,144	)		126,381
Closing balance 12-31-2022		195,290			16,731			66,709			157			—			24,437			3,163			306,487

The depreciation expense for the period ending March 31, 2023 and 2022 recognized in property, plant and equipment by right of use is as follows:

	January - March
	2023		2022
Depreciation for the period	ThU.S.$		ThU.S.$
Cost of sales		6,707		10,483
Distribution costs		275		531
Administrative expenses		1,781		1,902
Total		8,763		12,916

Depreciation charged to profit or loss statement differs from the movement of the period for Right of use assets. This is mainly due to the periodic cost processes in which a portion of the depreciation charge remains activated. Furthermore, this deviation is also affected by the conversion differences corresponding to companies that use a functional currency other than U.S. dollars.

Additionally, Arauco has recognized directly in the interim consolidated statement of profit or loss, the following leases excluded from right of use assets:

	January - March
	2023		2022
	ThU.S.$		ThU.S.$
Expenses from payments of variable leases		51,759		35,536
Expenses from low value leases		835		534
Expenses from short-term leases		19,832		11,960
Total		72,426		48,030

48

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Arauco acting as lessor

IFRS 16 substantially maintains the accounting requirements of the lessor of IAS 17. Consequently, Arauco has continued to classify its leases as operating or financial.

Reconciliation of financial lease minimum payments:

	03-31-2023
	Gross		Interest		Present value
Periods	ThU.S.$		ThU.S.$		ThU.S.$
Less than one year		6,719		—		6,719
Between one and six years		31,895		2,221		29,674
More than six years		—		—		—
Total		38,614		2,221		36,393
	12-31-2022
	Gross		Interest		Present value
Periods	ThU.S.$		ThU.S.$		ThU.S.$
Less than one year		5,067		—		5,067
Between one and six years		25,750		1,882		23,868
More than six years		—		—		—
Total		30,817		1,882		28,935

Financial lease receivables are presented in the interim 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 - March
	2023		2022
Classes of revenue	ThU.S.$		ThU.S.$
Revenue from sales of goods		1,403,742		1,731,079
Revenue from rendering of services		35,729		30,545
Total		1,439,471		1,761,624

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

49

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 10. EMPLOYEE BENEFITS

Classes of Benefits and Expenses by Employee

	January - March
	2023		2022
	ThU.S.$		ThU.S.$
Employee expenses		187,892		174,835
Wages and salaries		181,944		171,323
Severance indemnities		5,948		3,512

	03-31-2023			12-31-2022
Discount rate		3.02	%		3.02	%
Inflation		3.20	%		3.20	%
Annual rate of wage growth		5.22	%		5.22	%
Mortality rate		RV-2014			RV-2014

Sensitivities to assumptions	ThU.S.$
Discount rate
Increase in 100 bps		(8,039	)
Decrease in 100 bps		7,914
Wage growth rates
Increase in 100 bps		6,905
Decrease in 100 bps		(6,100	)

The following tables set forth the balances and the reconciliation of the present value of severance indemnities obligations as of March 31, 2023 and December 31, 2022:

	03-31-2023		12-31-2022
	ThU.S.$		ThU.S.$
Current		8,177		7,571
Non-current		94,941		87,689
Total		103,118		95,260

Reconciliation of the present value of severance indemnities obligations	03-31-2023 ThU.S.$			12-31-2022 ThU.S.$
Opening balance		95,260			72,560
Current service cost		1,860			6,832
Interest cost		1,314			3,673
(Gains) losses from changes in actuarial assumptions		—			727
Actuarial gains and losses arising from experience		252			19,285
Benefits paid		(3,474	)		(7,561	)
Increase (decrease) for foreign currency exchange rates changes		7,906			(256	)
Closing balance		103,118			95,260

The average staffing as of March 31, 2023 was 19,043 people.

50

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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.

	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
March 31, 2023	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		458,284		5,508		190,496		101,143		44,358		5,141		67,883		—		872,813
Other current financial assets		27,547		—		—		44		—		—		—		—		27,591
Other current non-financial assets		80,880		158		15,120		10,988		5,565		7,935		138,000		—		258,646
Trade and other current receivables		555,578		39,417		62,811		31,819		34,713		2,097		118,401		8,257		853,093
Accounts receivable due from related companies		2,122		—		—		766		—		—		488		—		3,376
Current Inventories		1,352,491		—		131,745		—		42,799		—		191		—		1,527,226
Current biological assets		270,963		—		78,758		—		—		—		—		—		349,721
Current tax assets		171,895		—		8,730		—		10,556		1,242		759		—		193,182
Non-current assets or disposal groups classified as held for sale		2,919,760		45,083		487,660		144,760		137,991		16,415		325,722		8,257		4,085,648
Non-current assets or disposal groups classified as held for sale		107		—		16		—		52		—		—		—		175
Total current assets		2,919,867		45,083		487,676		144,760		138,043		16,415		325,722		8,257		4,085,823
Non-current assets
Other non-current financial assets		108,549		—		—		—		—		—		—		—		108,549
Other non-current non-financial assets		93,510		—		19,776		74		742		8		358		—		114,468
Trade and other non-current receivables		5,769		—		—		—		—		—		3,556		29,188		38,513
Investments accounted for using equity method		87,450		216,189		40,312		—		—		—		41,257		—		385,208
Intangible assets other than goodwill		68,425		—		1,941		—		324		—		—		—		70,690
Goodwill		41,410		—		13,753		—		—		—		—		—		55,163
Property, plant and equipment		9,040,884		—		421,328		—		135,618		—		1,441		—		9,599,271
Right of use assets		155,399		—		162,159		—		734		—		—		—		318,292
Non-current biological assets		2,493,931		—		340,913		—		—		—		—		—		2,834,844
Deferred tax assets		6,932		—		3,866		—		629		—		—		—		11,427
Total non-current assets		12,102,259		216,189		1,004,048		74		138,047		8		46,612		29,188		13,536,425
Total assets		15,022,126		261,272		1,491,724		144,834		276,090		16,423		372,334		37,445		17,622,248
	U.S Dollar		Euros		Brazilian Real		Argentine Pesos		Mexican Pesos		Other currencies		Chilean Pesos		U.F.		Total
March 31, 2023	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		584,031		72,392		2,779		—		—		—		—		66,236		725,438
Current lease liabilities		10,973		88		12,962		—		1,600		59		7,240		3,427		36,349
Trade and other current payables		222,965		24,632		86,689		44,042		18,719		11,366		301,239		45,417		755,069
Accounts payable to related companies		184		—		2,218		—		—		—		16,486		—		18,888
Other short-term provisions		8,322		—		321		—		—		—		—		1,445		10,088
Current tax liabilities		11,952		4,751		1,343		—		—		—		—		—		18,046
Current provisions for employee benefits		—		—		—		—		—		—		8,177		—		8,177
Other current non-financial liabilities		286,194		63		29,460		4,887		9,167		29		19,216		—		349,016
Total liabilities, current		1,124,621		101,926		135,772		48,929		29,486		11,454		352,358		116,525		1,921,071
Non-current liabilities
Other non-current financial liabilities		3,630,620		403,898		187,482		—		—		—		—		1,170,532		5,392,532
Non-current lease liabilities		118,341		89		119,442		—		1,442		129		1,458		15,477		256,378
Other non-current payables		—		—		2,528		—		—		—		19,369		—		21,897
Non-current accounts payable to related companies		—		—		—		—		—		—		6,731		—		6,731
Other long-term provisions		—		—		4,100		26,431		—		—		—		—		30,531
Deferred tax liabilities		1,587,120		—		106,921		—		6,900		—		—		—		1,700,941
Non-current provisions for employee benefits		—		—		—		—		1,064		—		93,877		—		94,941
Other non-current non-financial liabilities		—		—		70,610		9		—		—		10		—		70,629
Total non-current liabilities		5,336,081		403,987		491,083		26,440		9,406		129		121,445		1,186,009		7,574,580
Total liabilities		6,460,702		505,913		626,855		75,369		38,892		11,583		473,803		1,302,534		9,495,651

51

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

	U.S. dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
December 31, 2022	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		395,254		4,884		103,829		97,859		28,564		26,793		10,024		—		667,207
Other current financial assets		15,350		—		—		—		—		—		—		—		15,350
Other current non-financial assets		18,727		115		17,745		5,333		2,979		7,406		153,754		—		206,059
Trade and other current receivables		614,204		36,425		50,646		33,287		33,089		1,972		97,616		6,056		873,295
Accounts receivable due from related companies		—		—		—		4,713		—		—		2,850		—		7,563
Current Inventories		1,298,649		—		130,707		—		39,353		—		1,302		—		1,470,011
Current biological assets		264,858		—		65,577		—		—		—		—		—		330,435
Current tax assets		174,287		—		8,333		10,296		9,495		1,137		174		—		203,722
Non-current assets or disposal groups classified as held for sale		2,781,329		41,424		376,837		151,488		113,480		37,308		265,720		6,056		3,773,642
Non-current assets or disposal groups classified as held for sale		1,215		—		15		—		49		—		—		—		1,279
Total current assets		2,782,544		41,424		376,852		151,488		113,529		37,308		265,720		6,056		3,774,921
Non-current assets
Other non-current financial assets		63,321		—		—		—		—		—		—		—		63,321
Other non-current non-financial assets		2,980		—		16,022		97		742		8		72,665		—		92,514
Trade and other non-current receivables		5,880		—		—		—		—		—		3,434		23,360		32,674
Investments accounted for using equity method		87,826		203,443		36,489		—		—		—		37,913		—		365,671
Intangible assets other than goodwill		71,141		—		1,940		—		358		—		—		—		73,439
Goodwill		41,408		—		13,392		—		—		—		—		—		54,800
Property, plant and equipment		9,024,490		—		389,522		—		127,120		—		1,203		—		9,542,335
Right of use assets		161,087		—		144,626		—		774		—		—		—		306,487
Non-current biological assets		2,549,796		—		315,139		—		—		—		—		—		2,864,935
Deferred tax assets		5,035		—		3,500		—		476		—		—		—		9,011
Total non-current assets		12,012,964		203,443		920,630		97		129,470		8		115,215		23,360		13,405,187
Total assets		14,795,508		244,867		1,297,482		151,585		242,999		37,316		380,935		29,416		17,180,108
	U.S. dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
December 31, 2022	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		252,091		69,139		2,810		17		—		—		—		51,394		375,451
Current lease liabilities		10,636		91		10,063		—		1,579		23		10,716		3,676		36,784
Trade and other current payables		234,226		23,277		82,988		54,078		16,791		10,476		351,646		39,356		812,838
Accounts payable to related companies		202		—		—		—		—		—		14,078		—		14,280
Other short-term provisions		7,934		—		264		—		—		—		—		1,315		9,513
Current tax liabilities		19,482		5,123		1,512		—		752		—		—		—		26,869
Current provisions for employee benefits		—		—		—		—		—		—		7,571		—		7,571
Other current non-financial liabilities		192,359		51		33,011		5,120		4,828		16		7,593		—		242,978
Total current liabilities		716,930		97,681		130,648		59,215		23,950		10,515		391,604		95,741		1,526,284
Non-current liabilities
Other non-current financial liabilities		3,637,416		386,186		67,080		—		—		—		—		1,064,689		5,155,371
Non-current lease liabilities		120,656		110		91,206		—		1,659		—		549		13,260		227,440
Other non-current payables		—		—		2,462		—		—		—		17,654		—		20,116
Non-current accounts payable to related companies		—		—		—		—		—		—		6,731		—		6,731
Other long-term provisions		1,677		—		12,512		26,517		—		—		—		—		40,706
Deferred tax liabilities		1,681,957		—		97,822		—		6,136		—		—		—		1,785,915
Non-current provisions for employee benefits		—		—		—		—		957		—		86,732		—		87,689
Other non-current non-financial liabilities		—		—		69,849		10		—		—		13		—		69,872
Total non-current liabilities		5,441,706		386,296		340,931		26,527		8,752		—		111,679		1,077,949		7,393,840
Total liabilities		6,158,636		483,977		471,579		85,742		32,702		10,515		503,283		1,173,690		8,920,124

52

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

	03-31-2023						12-31-2022
	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		1,767,975		153,096		1,921,071		1,241,515		284,769		1,526,284
Other current financial liabilities		631,888		93,550		725,438		141,110		234,341		375,451
U.S. dollar		550,471		33,560		584,031		138,283		113,808		252,091
Euros		36,952		35,440		72,392		—		69,139		69,139
Brazilian real		2,779		—		2,779		2,810		—		2,810
Argentine pesos		—		—		—		17		—		17
U.F.		41,686		24,550		66,236		—		51,394		51,394
Bank borrowings		551,976		57,200		609,176		109,889		167,905		277,794
U.S. dollar		512,245		21,760		534,005		107,079		98,766		205,845
Euros		36,952		35,440		72,392		—		69,139		69,139
Brazilian real		2,779		—		2,779		2,810		—		2,810
Other borrowings		79,912		36,350		116,262		31,221		66,436		97,657
U.S. dollar		38,226		11,800		50,026		31,204		15,042		46,246
Argentine pesos		—		—		—		17		—		17
U.F.		41,686		24,550		66,236		—		51,394		51,394
Current lease liabilities		10,436		25,913		36,349		11,339		25,445		36,784
U.S. dollar		2,904		8,069		10,973		2,799		7,837		10,636
Euros		24		64		88		24		67		91
Brazilian real		2,613		10,349		12,962		2,240		7,823		10,063
Mexican pesos		379		1,221		1,600		457		1,122		1,579
Other currencies		28		31		59		2		21		23
Chilean pesos		3,632		3,608		7,240		4,264		6,452		10,716
U.F.		856		2,571		3,427		1,553		2,123		3,676
Trade and other current payables		728,526		26,543		755,069		795,533		17,305		812,838
U.S. dollar		222,880		85		222,965		233,932		294		234,226
Euros		24,630		2		24,632		23,271		6		23,277
Brazilian real		60,485		26,204		86,689		66,586		16,402		82,988
Argentine pesos		44,042		—		44,042		54,078		—		54,078
Mexican pesos		18,467		252		18,719		16,188		603		16,791
Other currencies		11,366		—		11,366		10,476		—		10,476
Chilean pesos		301,239		—		301,239		351,646		—		351,646
U.F.		45,417		—		45,417		39,356		—		39,356
Accounts payable to related companies		18,888		—		18,888		14,280		—		14,280
U.S. dollar		184		—		184		202		—		202
Brazilian real		2,218		—		2,218		—		—		—
Chilean pesos		16,486		—		16,486		14,078		—		14,078
Other short-term provisions		8,645		1,443		10,088		8,198		1,315		9,513
U.S. dollar		8,322		—		8,322		7,934		—		7,934
Brazilian real		321		—		321		264		—		264
U.F.		2		1,443		1,445		—		1,315		1,315
Current tax liabilities		16,017		2,029		18,046		24,251		2,618		26,869
U.S. dollar		9,923		2,029		11,952		16,864		2,618		19,482
Euros		4,751		—		4,751		5,123		—		5,123
Brazilian real		1,343		—		1,343		1,512		—		1,512
Mexican pesos		—		—		—		752		—		752
Current provisions for employee benefits		7,214		963		8,177		6,706		865		7,571
Chilean pesos		7,214		963		8,177		6,706		865		7,571
Other current non-financial liabilities		346,361		2,655		349,016		240,098		2,880		242,978
U.S. dollar		286,194		—		286,194		192,359		—		192,359
Euros		63		—		63		51		—		51
Brazilian real		29,460		—		29,460		33,011		—		33,011
Argentine pesos		4,887		—		4,887		5,120		—		5,120
Mexican pesos		9,167		—		9,167		4,828		—		4,828
Other currencies		29		—		29		16		—		16
Chilean pesos		16,561		2,655		19,216		4,713		2,880		7,593

53

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

	03-31-2023								12-31-2022
	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		2,442,675		1,132,139		3,999,766		7,574,580		2,389,107		1,104,841		3,893,161		7,387,109
Other non-current financial liabilities		1,144,495		992,892		3,255,145		5,392,532		1,028,450		947,217		3,179,704		5,155,371
U.S. dollar		774,447		493,264		2,362,909		3,630,620		782,284		492,898		2,362,234		3,637,416
Euros		132,371		135,400		136,127		403,898		126,793		129,736		129,657		386,186
Brazilian real		141,555		45,927		—		187,482		31,943		35,137		—		67,080
U.F.		96,122		318,301		756,109		1,170,532		87,430		289,446		687,813		1,064,689
Bank borrowings		483,615		181,327		136,127		801,069		368,353		164,873		129,657		662,883
U.S. dollar		209,689		—		—		209,689		209,617		—		—		209,617
Euros		132,371		135,400		136,127		403,898		126,793		129,736		129,657		386,186
Brazilian real		141,555		45,927		—		187,482		31,943		35,137		—		67,080
Other borrowings		660,880		811,565		3,119,018		4,591,463		660,097		782,344		3,050,047		4,492,488
U.S. dollar		564,758		493,264		2,362,909		3,420,931		572,667		492,898		2,362,234		3,427,799
U.F.		96,122		318,301		756,109		1,170,532		87,430		289,446		687,813		1,064,689
Non-current lease liabilities		50,259		40,025		166,094		256,378		45,904		38,906		142,630		227,440
U.S. dollar		21,431		17,355		79,555		118,341		21,562		17,653		81,441		120,656
Euros		89		—		—		89		109		1		—		110
Brazilian real		19,957		17,990		81,495		119,442		17,335		16,375		57,496		91,206
Mexican pesos		1,407		35		—		1,442		1,646		13		—		1,659
Other currencies		86		43		—		129		—		—		—		—
Chilean pesos		1,090		368		—		1,458		197		352		—		549
U.F.		6,199		4,234		5,044		15,477		5,055		4,512		3,693		13,260
Non-current payable		21,897		—		—		21,897		2,462		—		17,654		20,116
Brazilian real		2,528		—		—		2,528		2,462		—		—		2,462
Chilean pesos		19,369		—		—		19,369		—		—		17,654		17,654
Non-current accounts payable to related companies		3,283		—		3,448		6,731		3,283		—		3,448		6,731
Chilean pesos		3,283		—		3,448		6,731		3,283		—		3,448		6,731
Other long-term provisions		30,531		—		—		30,531		40,706		—		—		40,706
U.S. dollar		—		—		—		—		1,677		—		—		1,677
Brazilian real		4,100		—		—		4,100		12,512		—		—		12,512
Argentine pesos		26,431		—		—		26,431		26,517		—		—		26,517
Deferred tax liabilities		1,053,964		85,358		561,619		1,700,941		1,152,877		94,256		538,782		1,785,915
U.S. dollar		1,034,792		83,793		468,535		1,587,120		1,088,336		92,026		501,595		1,681,957
Brazilian real		12,272		1,565		93,084		106,921		58,405		2,230		37,187		97,822
Mexican pesos		6,900		—		—		6,900		6,136		—		—		6,136
Non-current provisions for employee benefits		94,919		—		22		94,941		77,746		9,943		—		87,689
Mexican pesos		1,042		—		22		1,064		957		—		—		957
Chilean pesos		93,877		—		—		93,877		76,789		9,943		—		86,732
Other non-current non-financial liabilities		43,327		13,864		13,438		70,629		40,962		14,519		14,391		69,872
Brazilian real		43,308		13,864		13,438		70,610		40,939		14,519		14,391		69,849
Argentine pesos		9		—		—		9		10		—		—		10
Chilean pesos		10		—		—		10		13		—		—		13

54

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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.	Brazil	Brazilian real
Arauco Forest Brasil S.A.	Brazil	Brazilian real
Arauco Industria de Mexico, S.A. de C.V.	Mexico	Mexican pesos
Arauco Industria de Paineis S.A.	Brazil	Brazilian real
Arauco Participações Florestais Ltda.	Brazil	Brazilian real
Araucomex Servicios, S.A. de C.V.	Mexico	Mexican pesos
Consorcio Protección Fitosanitaria Forestal S.A.	Chile	Chilean pesos
Empreendimentos Florestais Santa Cruz Ltda.	Brazil	Brazilian real
Leasing Forestal S.A.	Argentina	Argentine pesos
Mahal Empreendimentos e Participações S.A.	Brazil	Brazilian real
Novo Oeste Gestao de Ativos Florestais S.A.	Brazil	Brazilian real
Lemu Earth SpA	Chile	Chilean pesos

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

	January - March
	2023			2022
	ThU.S.$			ThU.S.$
Arauco Industria México S.A. de C.V.		13,164			5,731
Arauco do Brasil S.A.		11,781			64,115
Arauco Forest Brasil S.A.		11,594			48,162
Sonae Arauco S.A.		3,036			(4,189	)
Arauco Florestal Arapoti S.A.		1,927			11,696
Arauco Canada Ltd.		684			1,219
Others		(499	)		3,136
Total reserve of exchange differences on translation		41,687			129,870

Effect of foreign exchange rates changes

	January - March
	2023			2022
	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		(8,034	)		(9,682	)
Reserve of exchange differences on translation (with non-controlling interests)		41,542			129,910

NOTE 12. BORROWING COSTS

Arauco capitalizes interest at effective rate on current investment projects.

Until the year 2022, Arauco has capitalized financial interest related to the modernization and expansion of Planta Arauco (MAPA) in Chile.

	January - March
	2023			2022
	ThU.S.$			ThU.S.$
Interest cost capitalized, property, plant and equipment
Capitalization rate of interest cost capitalized, property, plant and equipment		4.74	%		4.32	%
Amount of the interest cost capitalized, property, plant and equipment		53			27,887

55

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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 interim 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 interim consolidated financial statements, there are 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, direct and indirectly, are Mr. Roberto Angelini Rossi and Mrs. Patricia Angelini Rossi.

Name of the Intermediate Controlling Entity that Produces interim 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.

56

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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	03-31-2023						12-31-2022
ID N°	Company Name	Country	Currency	Direct		Indirect		Total		Direct		Indirect		Total
77.630.621-5	Agrícola Ranquillón SpA	Chile	U.S. dollar		—		98.64086		98.64086		—		98.58669		98.58669
77.630.618-5	Agrícola San Carlos SpA	Chile	U.S. dollar		—		99.94839		99.94839		—		99.94839		99.94849
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		—		98.64086		98.64086		—		98.58669		98.58669
77.630.629-0	Agrícola Trupán SpA	Chile	U.S. dollar		—		98.64086		98.64086		—		98.58669		98.58669
—	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 S.A.	Chile	U.S. dollar		98.00000		1.99897		99.99897		98.0000		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		—		99.99907		99.99907		—		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.	Holland	U.S. dollar		0.48299		99.51599		99.99898		0.52148		99.47751		99.99899
—	Arauco Florestal Arapoti S.A.	Brazil	Brazilian real		—		99.99900		99.99900		—		99.99900		99.99900
—	Arauco Forest Brasil S.A.	Brazil	Brazilian real		8.68654		91.31253		99.99907		8.68654		91.31253		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	Dubai	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 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		87,36874		100.00000		12.63126		87.36874		100.00000
—	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		—		56.83105		56.83105		—		56.82817		56.82817
—	Empreendimentos Florestais Santa Cruz Ltda.	Brazil	Brazilian real		—		99.99866		99.99866		—		99.99866		99.99866
76.869.577-0	E2E S.A. (1)	Chile	Chilean pesos		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		—		98.64086		98.64086		—		98.58669		98.58669
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 S.A.	Chile	U.S. dollar		1.00000		98.94891		99.94891		1.00000		98.94891		99.94891
—	Leasing Forestal S.A.	Argentina	Argentine pesos		—		99.98010		99.98010		—		99.98010		99.98010
76.860.724-9	Lemu Earth SpA	Chile	Chilean pesos		—		86.61426		86.61426		—		86.61426		86.61426
—	Lemu Global Limited	United Kingdom	U.S. dollar		—		99.99898		99.99898		—		99.99898		99.99898
—	Maderas Arauco Costa Rica S.A.	Costa Rica	U.S. dollar		—		99.99898		99.99898		—		99.99898		99.99898
96.510.970-6	Maderas Arauco S.A.	Chile	U.S. dollar		—		99.99860		99.99860		—		99.99860		99.99860
—	Mahal Empreendimentos e Participações S.A.	Brazil	Brazilian real				99.99901		99.99901		—		99.99901		99.99901
—	Novo Oeste Gestao de Ativos Florestais S.A.	Brazil	Brazilian real				99.99907		99.99907		—		99.99907		99.99907
76.375.371-9	Servicios Aéreos Forestales Ltda.	Chile	U.S. dollar		0.01000		99.98898		99.99898		0.01000		99.98898		99.99898
96.637.330-K	Servicios Logísticos Arauco S.A.	Chile	U.S. dollar		45.00000		54.99923		99.99923		45.00000		54.99923		99.99923
—	Tecverde Engenharia S.A.(1)	Brazil	Brazilian real		—		95.61432		95.61432		—		—		—
—	Woodaffix, LLC.	United States	U.S. dollar		—		99.99911		99.99911		—		99.99911		99.99911

(1) Increased of participation in E2E, changed it from joint venture to subsidiary. Additionally, through this subsidiary, in February 2023 Arauco increased its participation in Tecverde, thus being recognized as a subsidiary.

The companies in the table below are classified as joint operations in accordance with IFRS 11. The assets, liabilities, income and expenses are recorded in relation to the Company’s ownership percentage in accordance with accounting standards applicable in each case.

Company Name	Country	Functional currency
Eufores S.A.	Uruguay	U.S. dollar
Celulosa y Energía Punta Pereira S.A.	Uruguay	U.S. dollar
Zona Franca Punta Pereira S.A.	Uruguay	U.S. dollar
Forestal Cono Sur S.A.	Uruguay	U.S. dollar
Stora Enso Uruguay S.A.	Uruguay	U.S. dollar
El Esparragal Asociación Agraria de R.L.	Uruguay	U.S. dollar
Ongar S.A.	Uruguay	U.S. dollar
Terminal Logística e Industrial M’Bopicuá S.A.	Uruguay	U.S. dollar

57

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

According to significant restrictions on the ability of subsidiaries to transfer funds to Arauco, in the form of cash dividends or repayment of borrowings and/or advances, we state the following:

Long-term debt with related entities - Mutual Agreement with Arauco Argentina S.A.

On June 5, 2017, Arauco signed a mutual agreement with its subsidiary Arauco Argentina S.A., pursuant to which this subsidiary received an amount of U.S.$ 250,000,000, which accrues an interest at the LIBOR interest rate for 180 days plus a fixed spread of 5.20%, with payments every six months on June 1 and December 1 of each year.

Since 2020, the Central Bank of the Argentine Republic (BCRA) established certain foreign exchange controls, preventing Arauco Argentina S.A. from repaying the amount of ThU.S.$ 160,000 owed under the mutual agreement described above which matured on June 1, 2022.

On July 14, 2022, Arauco Argentina S.A. paid ThU.S.$ 6,000 of the amount owed under the mutual agreement described above, remaining to pay ThU.S.$ 154,000 as of the date of these financial statements.

Key Management Personnel Compensation and Redundancy Benefits

	January - March
	2023		2022
	ThU.S.$		ThU.S.$
Salaries and bonuses		22,304		24,234
Per diem compensation to members of the Board of Directors		678		601
Termination benefits		1,061		391
Total		24,043		25,226

Related Party Receivables, Current

Nature of

03-31-2023

12-31-2022

Name of related party

Tax ID No.

relationship

Country

Currency

Maturity

ThU.S.$

ThU.S.$

Forestal Mininco S.A.

91.440.000-7

Common stockholder

Chile

Chilean pesos

30 days

2

1

Eka Chile S.A.

99.500.140-3

Joint venture

Chile

Chilean pesos

30 days

1,879

2,626

Abastible S.A.

91.806.000-6

Common controlling parent

Chile

Chilean pesos

30 days

85

—

Colbún S.A.

96.505.760-9

Common stockholder

Chile

Chilean pesos

30 days

22

21

Fundación Acerca Redes

65.097.218-K

Parent company is founder and contributor

Chile

Chilean pesos

30 days

224

41

Parque Eólico Ovejera Sur SpA.

76.839.949-2

Joint venture

Chile

Chilean pesos

30 days

100

100

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

U.S. dollar

30 days

221

—

E2E S.A.

76.218.856-2

Joint venture

Chile

Chilean pesos

—

—

60

EMOAC SpA.

76.208.888-6

Common controlling parent

Chile

Chilean pesos

30 days

77

1

La Papelera del Plata S.A.

—

Common controlling parent

Argentina

Argentine pesos

30 days

766

4,713

TOTAL

3,376

7,563

58

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Related Party Payables, Current

03-31-2023

12-31-2022

Name of related party

Tax ID No.

Nature of relationship

Country

Currency

Maturity

ThU.S.$

ThU.S.$

Copec S.A.

99.520.000-7

Common controlling parent

Chile

Chilean pesos

30 days

6,180

4,474

Abastible S.A.

91.806.000-6

Common controlling parent

Chile

Chilean pesos

30 days

135

189

Fundación Educacional Arauco

71.625.000-8

Parent company is founder and contributor

Chile

Chilean pesos

30 days

36

780

Empresa Nacional de Telecomunicaciones S.A.

92.580.000-7

Common stockholder

Chile

Chilean pesos

30 days

2

4

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

U.S. dollar

30 days

184

202

Copec Aviation S.A.

96.942.120-8

Joint venture of controlling parent

Chile

Chilean pesos

—

—

3

Falcão MS SPE S.A.

—

Associate

Brasil

Reales

30 días

2,218

—

Agrícola San Gerardo SpA

77.017.167-9

Joint venture

Chile

Chilean pesos

30 days

142

146

Agrícola Fresno SpA

77.470.229-6

Joint venture

Chile

Chilean pesos

Dec-31-23

9,991

8,482

TOTAL

18,888

14,280

Related Party Payables, Non-Current

								03-31-2023		12-31-2022
Name of related party	Tax ID No.		Nature of relationship	Country		Currency	Maturity	ThU.S.$		ThU.S.$
Agrícola Fresno SpA		77.470.229-6	Joint venture		Chile	Chilean pesos	Dec-31-24		3,283		3,283
Agrícola Fresno SpA		77.470.229-6	Joint venture		Chile	Chilean pesos	Dec-31-27		3,448		3,448
TOTAL									6,731		6,731

Related Party Transactions

Purchases

Name of related party	Tax ID No.		Nature of relationship	Country	Currency	Transaction descriptions	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Abastible S.A.		91.806.000-6	Common controlling parent	Chile	Chilean pesos	Fuel		731		3,207
Copec S.A.		99.520.000-7	Common controlling parent	Chile	Chilean pesos	Fuel and other		46,705		92,643
Compañía Puerto de Coronel S.A.		79.895.330-3	Subsidiary of an associate	Chile	U.S. dollar	Transport, stowage and port services		3,660		7,643
EKA Chile S.A.		99.500.140-3	Joint venture	Chile	Chilean pesos	Sodium chlorate		9,930		41,540
Portaluppi, Guzman y Bezanilla Abogados Ltda.		78.096.080-9	Common director	Chile	Chilean pesos	Legal services		293		851
Empresa Nacional de Telecomunicaciones S.A.		92.580.000-7	Common stockholder	Chile	Chilean pesos	Telephone services		19		123
Colbún S.A.		96.505.760-9	Common stockholder	Chile	Chilean pesos	Electrical Power		414		834
Woodtech S.A.		76.724.000-7	Indirect associate of controlling parent	Chile	Chilean pesos	Wood volumen measurement services		293		1,012
Servicios Corporativos Sercor S.A.		96.925.430-1	Associate	Chile	Chilean pesos	Other purchases		42		246

Sales

Name of related party	Tax ID No.		Nature of relationship	Country	Currency	Transaction descriptions	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Colbún S.A.		96.505.760-9	Common stockholder	Chile	Chilean pesos	Electrical power		57		161
EKA Chile S.A.		99.500.140-3	Joint venture	Chile	Chilean pesos	Electrical power		4,596		23,539
Fundación Educacional Arauco		71.625.000-8	Parent company is founder and contributor	Chile	Chilean pesos	IT and administrative services		51		299
CMPC Pulp S.A.		96.532.330-9	Common stockholder	Chile	Chilean pesos	Wood and chips		2		525
Compañía Puerto de Coronel S.A.		79.895.330-3	Subsidiary of an associate	Chile	U.S. dollar	Other sales		30		453
E2E S.A.		76.879.577-0	Joint venture	Chile	Chilean pesos	Wood, plywood and boards		117		246
EMOAC SPA		76.208.888-6	Indirect subsidiary of controlling parent	Chile	Chilean pesos	Electrical Power		1,792		3,272
La Papelera del Plata S.A.		—	Associate	Chile	Chilean pesos	Pulp		3,980		16,686

Other transactions

Name of related party	Tax ID No.		Nature of relationship	Country	Currency	Transaction descriptions	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Falcão MS SPE S.A.		—	Associate	Brasil	Reales	Capital contribution		2,222		9,664
Agrícola San Gerardo SpA		77.017.167-9	Joint venture	Chile	Chilean pesos	Capital contribution		—		136
Agrícola Fresno SpA		77.470.229-6	Joint venture	Chile	Chilean pesos	Capital contribution		1,509		31,998
Parque Eólico Ovejera Sur SpA.		76.839.949-2	Joint venture	Chile	Chilean pesos	Capital contribution		—		118
E2E S.A.		76.879.577-0	Joint venture	Chile	Chilean pesos	Capital contribution		5,254		—
E2E S.A.		76.879.577-0	Joint venture	Chile	U.S. dollar	Borrowing		537		3,546

59

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 14. INVESTMENTS IN SUBSIDIARIES

The main operations carried out as of March 31, 2023 and December 31, 2022 are reported below:

On March 17, 2023, Arauco took over control of the company E2E S.A., acquiring the remaining 50% interest. The payment for this transaction amounted to ThCLP$ 102.

On June 22, 2022, a cooperation agreement was signed with the Government of Mato Grosso do Sul, Brazil. Signing this agreement is an important and preparatory step that will enable us to continue assessing the construction of a new pulp mill. If conditions allow – among which conditions are obtaining all necessary permits and board approval – this new plant would have an estimated production capacity of 2.5 million tons of short-fiber pulp and would require an estimated investment of approximately US$ 3 billion. For the same purposes, in August 2022 and through subsidiary Arauco Forest Brasil S.A., the company Arauco Celulose do Brasil S.A. was incorporated. This company participates in forestry-related activities, such as the formation of eucalyptus forests, logging, and electric power generation.

Reorganization

Arauco determined it necessary to reorganize its activity in the wood product segment by centralizing its investments in the wood market in an entity that allows a common direction and control. This is the reason why, on May 23, 2022, the company Arauco Wood Limited was created. Such international parent entity was incorporated in the United Kingdom, a country which is considered and valued as one of the main investment platforms and center global financial system, and known for its institutional stability.

In June and December 2022, Arauco, through its subsidiary Inversiones Arauco International Ltda. and the parent of the group, Celulosa Arauco y Constitución S.A., contributed their subsidiaries from the wood segment to the new company Arauco Wood Limited. These contributions were for a total amount of ThU.S.$ 1,989,972. This operation did not generate an effect within the consolidated statements of profit or loss.

With this reorganization, Arauco intends to achieve a more efficient international structure in a first-class financial center, thus generating an attractive investment focus for potential new investors or other market players. This centralization of the wood product segment will also allow a better and more efficient management, enhancing its investments with a solid structure and greater projections of profitability, growth and sustainability.

60

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 15. INVESTMENTS IN ASSOCIATES

As of March 31, 2023 and December 31, 2022, these are the main movements of investments in associates to report:

On August 8, 2022, the subsidiary Arauco Participações Florestais Ltda. of Brasil incorporated the company Falcão MS SPE S.A., and during the year 2022, Arauco contributed capital to the new company for ThR$ 49,985 (equivalents to ThU.S.$ 9,664). In 2023, Arauco contributed capital to Falcão MS SPE S.A. for ThR$ 11,270 (equivalents to ThU.S.$ 2,222).

The following tables set forth information about investments in associates.

Name	Inversiones Puerto Coronel S.A.
Country	Chile
Functional currency	U.S. dollar
Corporate purpose	Investments in movables and real estate, acquisition of companies, securities and investment instruments, investment management and development and/or participation in all kind of businesses and companies related to industrial, shipping, forestry and commercial activities.
Ownership interest (%)	50.0000%
	03-31-2023	12-31-2022
Carrying amount accounted for using equity method	ThU.S.$ 63,571	ThU.S.$ 64,000
Name	Servicios Corporativos Sercor S.A.
Country	Chile
Functional currency	Chilean pesos
Corporate purpose	Consulting services related to business management to Boards of Directors and Senior Management of all Arauco’s entities.
Ownership interest (%)	20.0000%
	03-31-2023	12-31-2022
Carrying amount accounted for using equity method	ThU.S.$ 372	ThU.S.$ 325
Name	Genómica Forestal S.A.
Country	Chile
Functional currency	Chilean pesos
Corporate purpose	Developing forestry genomics, through the use of biotechnological, molecular and bioinformatics tools with the purpose of strengthening genetic programs so as to improve the competitive position of the Chilean forestry industry for priority tree species.
Ownership interest (%)	25.0000%
	03-31-2023	12-31-2022
Carrying amount accounted for using equity method	ThU.S.$ 7	ThU.S.$ 6
Name	Consorcio Tecnológico Bioenercel S.A.
Country	Chile
Functional currency	Chilean pesos
Corporate purpose	Developing of technologies which will promote the development of a biofuels industry in Chile, obtained from lingo-cellulosic materials. The future execution of this sustainable project is financed by the Innova Chile Committee.
Ownership interest (%)	20.0000%
	03-31-2023	12-31-2022
Carrying amount accounted for using equity method	ThU.S.$ 1	ThU.S.$ 1
Name	Florestal Vale do Corisco S.A.
Country	Brazil
Functional currency	Brazilian real
Corporate purpose	Management of forestry activities.
Ownership interest (%)	49.0000%
	03-31-2023	12-31-2022
Carrying amount accounted for using equity method	ThU.S.$ 28,251	ThU.S.$ 26,910
Name	Falcão MS SPE S.A.
Country	Brazil
Functional currency	Brazilian real
Corporate purpose	Management of land for leases to related parties.
Ownership interest (%)	49.0000%
	03-31-2023	12-31-2022
Carrying amount accounted for using equity method	ThU.S.$ 12,060	ThU.S.$ 9,579

61

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Summarized Financial Information of Associates

	Assets
03-31-2023	Inversiones Puerto Coronel S.A. ThU.S.$			Serv.Corporativos Sercor S.A. ThU.S.$			Florestal Vale do Corisco S.A. ThU.S.$			Falcão MS SPE S.A. ThU.S.$		Consorcio Tecnológico Bioenercel S.A. ThU.S.$		Genómica Forestal S.A. ThU.S.$			Total ThU.S.$
Current		1			6,610			4,408			4,963		1		9			15,992
Non-current		128,962			2,707			74,793			19,652		4		50			226,168
Total of associates		128,963			9,317			79,201			24,615		5		59			242,160
	Liabilities and Equity
	Inversiones Puerto Coronel S.A. ThU.S.$			Serv.Corporativos Sercor S.A. ThU.S.$			Florestal Vale do Corisco S.A. ThU.S.$			Falcão MS SPE S.A. ThU.S.$		Consorcio Tecnológico Bioenercel S.A. ThU.S.$		Genómica Forestal S.A. ThU.S.$			Total ThU.S.$
Current		—			5,714			1,543			2		—		—			7,259
Non-current		54			1,744			20,001			—		4		32			21,835
Equity		128,909			1,859			57,657			24,613		1		27			213,066
Total of associates		128,963			9,317			79,201			24,615		5		59			242,160
03-31-2023
Income		—			1,380			2,275			—		—		—			3,655
Other income / expenses		(338	)		(1,208	)		(1,046	)		10		—		(1	)		(2,583	)
Net profit or loss (continuing operations) of associates		(338	)		172			1,229			10		—		(1	)		1,072
Other comprehensive income		—			—			—			—		—		—			—
Comprehensive income		(338	)		172			1,229			10		—		(1	)		1,072
Dividends received		—			—			—			—		—		—			—
	Assets
12-31-2022	Inversiones Puerto Coronel S.A. ThU.S.$			Serv.Corporativos Sercor S.A. ThU.S.$			Florestal Vale do Corisco S.A. ThU.S.$			Falcão MS SPE S.A. ThU.S.$		Consorcio Tecnológico Bioenercel S.A. ThU.S.$		Genómica Forestal S.A. ThU.S.$			Total ThU.S.$
Current		1			5,677			2,368			413		—		12			8,471
Non-current		129,819			2,273			73,089			19,136		4		52			224,373
Total of associates		129,820			7,950			75,457			19,549		4		64			232,844
	Liabilities and Equity
	Inversiones Puerto Coronel S.A. ThU.S.$			Serv.Corporativos Sercor S.A. ThU.S.$			Florestal Vale do Corisco S.A. ThU.S.$			Falcão MS SPE S.A. ThU.S.$		Consorcio Tecnológico Bioenercel S.A. ThU.S.$		Genómica Forestal S.A. ThU.S.$			Total ThU.S.$
Current		54			4,527			1,066			1		—		7			5,655
Non-current		—			1,798			19,475			—		3		28			21,304
Equity		129,766			1,625			54,916			19,548		1		29			205,885
Total of associates		129,820			7,950			75,457			19,549		4		64			232,844
03-31-2022
Income		—			1,168			3,557			—		—		—			4,725
Other income / expenses		3,008			(1,089	)		(1,694	)		—		—		—			225
Net profit or loss (continuing operations) of associates		3,008			79			1,863			—		—		—			4,950
Other comprehensive income		—			—			—			—		—		—			—
Comprehensive income		3,008			79			1,863			—		—		—			4,950
Dividends received		—			—			—			—		—		—			—

62

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Reconciliation of Investment in Associates and Joint Ventures

	03-31-2023			12-31-2022
	ThU.S.$			ThU.S.$
Opening balance as of January 1		365,671			336,642
Changes
Investment in joint ventures, additions (*)		2,222			9,664
Investment in joint ventures, additions (**)		6,763			32,252
Disposals, investment in associates and joint ventures (***)		—			(1,878	)
Share of profit (loss) in investment in associates		182			7,069
Share of profit (loss) in investment in joint ventures		7,681			26,615
Dividends received, Investments in associates		—			(35,187	)
Increase (decrease) in foreign exchange currency on translation of associates and joint ventures		3,849			(11,779	)
Other increase (decrease) in investment in associates and joint ventures		(1,160	)		2,273
Total changes		19,537			29,029
Closing balance		385,208			365,671

Year 2023

(*) Arauco Participações Florestais Ltda. made a capital contribution to Falcão MS SPE S.A., for ThR$ 11,270 that is equivalent to ThU.S.$ 2,222 for 11,270,000 shares.

(**) On January 9, 2023 Maderas Arauco S.A. made a capital contribution to E2E S.A., through the capitalization of loans maintained with this entity for Th$ 4,446,808 that is equivalent to ThU.S.$ 5,254 for 4,446,808 shares.

• Forestal Arauco S.A. and Agrícola San Carlos SpA. In March 2023 made a non-monetary assets contribution to Agrícola Fresno SpA for ThU.S.$ 1,509. For this contribution they subscribed 266,204 and 35,556 shares respectively. In the act, Agrícola San Carlos SpA sold the subscribed shares of Agrícola Fresno SpA to Forestal Arauco S.A., maintaining Forestal Arauco S.A. a 50% of participation in Agrícola Fresno SpA.

Year 2022

(*) During the year 2022, Arauco Participações Florestais Ltda. made a capital contribution to Falcão MS SPE S.A., for ThR$ 49,985 that in total is equivalent to ThU.S.$ 9,664 for 49,984,900 shares.

(**) During the year 2022, the main movement corresponds to:

• Forestal Arauco S.A. made a capital contribution in assets as non-monetary assets to Agrícola Fresno, for ThU.S.$ 31,998 for 6,399,520 shares.

(***) ThU.S.$ 1,878 equivalent to R$ 9,800,000 corresponding to a capital decrease of Arauco Forest do Brasil S.A. en Florestal Vale Do Corisco S.A. on October 11, 2022.

	03-31-2023		12-31-2022
	ThU.S.$		ThU.S.$
Carrying amount of investments in associates accounted for using equity method		104,262		100,821
Carrying amount of investments in joint ventures accounted for using equity method		280,946		264,850
Total investment accounted for using equity method		385,208		365,671

63

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 16. INTERESTS IN JOINT ARRANGEMENTS

Investments and contributions made

The main operations carried out as of March 31, 2023 and December 31, 2022 are reported below:

AS of January 9, 2023, Maderas Arauco S.A. made a capital contribution to E2E S.A., through the capitalization of loans maintained with this entity for ThCLP$ 4,446,808(equivalent to ThU.S.$ 5,254) for 4,446,808 shares.

On October 13, 2021, Arauco, through its subsidiary Forestal Arauco S.A. created Agrícola Fresno SpA with the purpose of developing agricultural projects. It was incorporated with a capital of ThU.S.$ 1,000, Forestal Arauco S.A. contributed the equivalent of 50% of the shares of the new subsidiary. In November of 2021, it was agreed to increase the capital to ThU.S.$ 7,452 and during the period of 2022 ThU.S.$ 31,998, Forestal Arauco S.A. contributed all of the committed capital (50%) through the contribution of assets.

As of March 31, 2023 and December 31, 2022, Arauco has not made contributions to Uruguayan companies Celulosa y Energía Punta Pereira S.A. and Zona Franca Punta Pereira S.A.

The investments in Uruguay qualify as a joint operation. In relation to “other rights and contractual conditions”, the joint operation has the primary objective of providing the parties an output. As established in the “Pulp Supply Agreement”, both Arauco and its partner have the obligation to acquire 100% of the yearly pulp produced by the joint operation. Arauco has recognized the assets, liabilities, income and expenses associated with its interest ownership, as of January 1, 2013, pursuant to IFRS 11.

Arauco holds a 50% interest in Sonae Arauco, which subsidiary produces and commercializes wood panels, of the type of MDF, PB and OSB, and sawn timber, through the operation of 2 panel plants and one sawmill in Spain; 2 panel plants and one resin plant in Portugal; 3 panel plants in Germany and 2 panel plants in South Africa.

Furthermore, Arauco holds a 50% ownership in Eka Chile S.A. (“Eka”), a company that sells sodium chlorate to pulp plants in Chile. There is a contractual agreement with this company whereby Arauco has engaged in an economic activity subject to common control, which is classified as a joint venture.

64

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following tables set forth summarized financial information of the more significant interests in joint arrangements, which qualify as joint operations:

	03-31-2023					12-31-2022
Celulosa y Energía Punta Pereira S.A. (Uruguay)	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		572,538			62,397		478,480			114,012
Non-current		1,970,161			139,958		1,982,237			141,588
Equity		—			2,340,344		—			2,205,117
Total joint arrangement		2,542,699			2,542,699		2,460,717			2,460,717
Investment		1,170,172					1,102,559
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		293,029					208,429
Expenses		(156,224	)				(144,681	)
Joint arrangement net income (loss)		136,805					63,748
	03-31-2023					12-31-2022
Forestal Cono Sur S.A. (consolidated)	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		30,548			5,895		30,769			5,894
Non-current		159,801			2,450		158,787			4,119
Equity		—			182,004		—			179,543
Total joint arrangement		190,349			190,349		189,556			189,556
Investment		91,002					89,772
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		270					1,562
Expenses		2,192					2,016
Joint arrangement net income (loss)		2,462					3,578
	03-31-2023					12-31-2022
Eufores S.A. (consolidated)	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		150,792			219,088		125,027			193,423
Non-current		892,866			106,200		892,452			119,050
Equity		—			718,370		—			705,006
Total joint arrangement		1,043,658			1,043,658		1,017,479			1,017,479
Investment		359,185					352,503
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		69,685					47,977
Expenses		(56,743	)				(29,330	)
Joint arrangement net income (loss)		12,942					18,647
	03-31-2023					12-31-2022
Zona Franca Punta Pereira S.A. (Uruguay)	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		17,313			103,223		13,824			101,385
Non-current		430,484			—		432,769			—
Equity		—			344,574		—			345,208
Total joint arrangement		447,797			447,797		446,593			446,593
Investment		172,287					172,604
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		5,286					5,506
Expenses		(5,920	)				4,109
Joint arrangement net income (loss)		(643	)				9,615

65

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following tables set forth summarized financial information of the more significant interests in joint ventures accounted in for equity method and its movements are presented in Note 15:

	03-31-2023					12-31-2022
Eka Chile S.A.	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		16,674			3,742		17,673			4,821
Non-current		39,345			5,263		39,496			5,347
Equity		—			47,014		—			47,001
Total joint arrangement		56,019			56,019		57,169			57,169
Investment		23,507					23,501
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		10,372					13,016
Expenses		(10,360	)				(10,999	)
Joint arrangement net income (loss)		12					2,017
Other comprehensive income		—					—
Comprehensive income		12					2,017
Dividends		—					—
	03-31-2023					12-31-2022
Sonae Arauco S.A.	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		349,478			250,273		320,837			229,330
Non-current		685,299			352,126		668,138			352,759
Equity		—			432,378		—			406,886
Total joint arrangement		1,034,777			1,034,777		988,975			988,975
Net assets		194,136					180,896
Net asset adjustment (goodwill)		22,053					22,547
Investment		216,189					203,443
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		305,842					357,067
Expenses		(284,049	)				(324,042	)
Joint arrangement net income (loss)		21,793					33,025
Other comprehensive income		—					—
Comprehensive income		21,793					33,025
Dividends		—					—
	03-31-2023					12-31-2022
Agrícola El Paque SpA.	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		259			1,095		966			1,360
Non-current		21,189			6,118		18,914			5,450
Equity		—			14,235		—			13,070
Total joint arrangement		21,448			21,448		19,880			19,880
Investment		7,117					6,534
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		—					—
Expenses		(78	)				65
Joint arrangement net income (loss)		(78	)				65
Other comprehensive income		—					—
Comprehensive income		(78	)				65
Dividends		—					—
	03-31-2023					12-31-2022
Parque Eólico Ovejera del Sur SpA.	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		85			299		100			224
Non-current		3,193			—		2,885			—
Equity		—			2,979		—			2,761
Total joint arrangement		3,278			3,278		2,985			2,985
Investment		1,490					1,381
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		—					—
Expenses		(10	)				(6	)
Joint arrangement net income (loss)		(10	)				(6	)
Other comprehensive income		—					—
Comprehensive income		(10	)				(6	)
Dividends		—					—

66

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

E2E S.A.	02-28-2023					12-31-2022
	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		7,693			20,282		7,361			20,327
Non-current		21,411			2,520		20,914			11,301
Equity		—			6,302		—			(3,353	)
Total joint arrangement		29,104			29,104		28,275			28,275
Investment		3,151					—
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		224					541
Expenses		(1,244	)				(1,192	)
Joint arrangement net income (loss)		(1,020	)				(651	)
Other comprehensive income		—					—
Comprehensive income		(1,020	)				(651	)
Dividends		—					—
	03-31-2023					12-31-2022
Agrícola San Gerardo SpA.	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		1,124			107		844			62
Non-current		6,300			3,444		5,661			2,871
Equity		—			3,873		—			3,572
Total joint arrangement		7,424			7,424		6,505			6,505
Investment		1,937					1,786
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		—					—
Expenses		6					8
Joint arrangement net income (loss)		6					8
Other comprehensive income		—					—
Comprehensive income		6					8
Dividends		—					—
	03-31-2023					12-31-2022
Agrícola Fresno SpA	Assets ThU.S.$			Liabilities ThU.S.$		Assets ThU.S.$			Liabilities ThU.S.$
Current		21,794			875		28,952			1,657
Non-current		62,904			—		58,755			7,232
Equity		—			83,823		—			78,818
Total joint arrangement		84,698			84,698		87,707			87,707
Investment		41,912					39,409
	03-31-2023					03-31-2022
	ThU.S.$					ThU.S.$
Income		—					—
Expenses		416					(31	)
Joint arrangement net income (loss)		416					(31	)
Other comprehensive income		—					—
Comprehensive income		416					(31	)
Dividends		—					—

67

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 17. IMPAIRMENT OF ASSETS

In 2022, as a result of loss of dryer, an impairment provision was made for ThU.S.$ 10,500 in Valdivia mill, which was recognized into impairment provisions of assets.

In 2022, as a result of closing MDP line of Pien mill in Brasil, an impairment provision was made for ThU.S.$ 14,388, which amount include an impairment of goodwill for ThU.S.$ 3,895.

At the end of 2022, considering the current projections of future margins, exchange differences and the sustained increasing risk in the Argentine Republic, and applying the usual procedures for determining impairment in accordance with IFRS, in the subsidiary Arauco Argentina, an impairment was recorded in the cash generating unit for the manufacture of cellulose pulp in the amount of ThU.S.$ 127,605.

The premises included in this projection consider a discount rate of 22.07%, sales volume based on expected production data, sales prices based on the projection of international consultants and future investments of the machinery in its current state.

As of December 31, 2022 the subsidiaries of United States and Canada, impairment provisions associated with sold and recovered from property, plant and equipment were reversed for a total of ThU.S.$ 7,014.

In addition, due to the modernization and expansion project of the Arauco mill (Proyecto de Modernización y Ampliación de la Planta Arauco, or MAPA Project), was totally impaired as of December 31, 2022. As of December 31, 2022, accumulated impairment of the assets of the CGU Line 1 of Arauco mill (pulp segment) was ThU.S.$ 101,069. For this calculation, we used a discount rate of 6.1%. The Line 1 of the Arauco mill was closed in January 2022 and the Line 3 of Arauco mill (MAPA Project) was launched in December of 2022.

All impairment provision charges are presented in the interim consolidated statement of profit or loss under other expenses by function, whose movements are shown below:

Changes in CGUs impairment provision	03-31-2023 ThU.S.$			12-31-2022 ThU.S.$
Opening balance		348,350			214,042
Impairment loss recognized in profit or loss		—			141,137
Reversal of impairment loss recognized in profit or loss		(55	)		(9,164	)
Increase (decrease) in foreign exchange		816			2,335
Closing balance		349,111			348,350

Changes in provisions for impairment of property, plant and equipment and spare parts due to technical obsolescence or loss to forest due to fires, are shown below:

Changes in impairment provision from impaired assets	03-31-2023 ThU.S.$			12-31-2022 ThU.S.$
Opening balance		18,085			11,798
Impairment loss recognized in profit or loss		2,706			13,823
Reverse of impairment recognized loss in profit or loss		(12	)		(7,691	)
Increase (decrease) in foreign exchange		—			155
Closing balance		20,779			18,085

68

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Goodwill

Goodwill is allocated to the groups of cash-generating units that are expected to benefit from the synergies of the combination.

At the date of these interim consolidated financial statements, the balance of goodwill is ThU.S.$ 55,163 (ThU.S.$ 54,800 on December 31, 2022), as shown below:

	03-31-2023		12-31-2022
Goodwill	ThU.S.$		ThU.S.$
Arauco Canada Ltd. (Flakeboard Company Ltd)		40,678		40,676
Arauco do Brasil S.A. (Pien mill)		13,753		13,392
Arauco North America, Inc. (Prime-Line, Inc.)		732		732
Closing balance		55,163		54,800

	03-31-2023		12-31-2022
Goodwill movement	ThU.S.$		ThU.S.$
Opening balance at January 1		54,800		57,697
Increase (decrease) impairment		—		(3,895	)
Increase (decrease) in foreign exchange		363		998
Closing balance		55,163		54,800

Of the total of goodwill, ThU.S.$ 40,678 (ThU.S.$ 40,676 as of December 31, 2022) were generated by the acquisition of “Flakeboard” (currently Arauco Canada Ltd.), a company that, directly and/or through its subsidiaries, possesses and operates 7 panel plants, for which Arauco acquired and paid, on September 24, 2012, the price of ThU.S.$ 242,502 for the 100% interest ownership. The remaining balance of ThU.S.$ 732 corresponds to the acquisition of Prime-Line Inc., on September 1, 2019, for which Arauco North America Inc, a subsidiary of Arauco Canada Ltd. paid ThU.S.$ 18,880 for all the shares of said company.

The recoverable amount for Flakeboard’s cash generating unit was determined based on the calculations of its value in use, and this calculation was made using cash flow projections covering a 7-year term, a period time, which is considered to represent the cyclicality of the business performance, applying a nominal discount rate of 7% which reflects current market assessments for the wood products segment in North America.

Due to the investment in panel plant in Pien, Brazil, there is a goodwill of ThU.S.$ 13,753 (ThU.S.$ 13,392 as of December 31, 2022).

The recoverable amount for the Pien mill’s cash generating unit was determined based on the calculations of its value in use, and this calculation was made using cash flow projections covering a 5-year term based on the operational plan approved by the Administration, applying a 7.4% nominal discount rate that reflects current evaluations for the panel segment in Brazil.

As of March 31, 2023, the carrying value of the goodwill of the plants did not exceed their recoverable value, except at the end of December 2022 in Brazil for the MDF line of the Pien mill, was recognized an impairment of the goodwill, and it was for ThU.S.$ 3,895.

69

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 18. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES

The contingent liabilities for outstanding litigations are as follows:

Celulosa Arauco y Constitución S.A.

1. On August 25, 2005, the Chilean Servicio de Impuestos Internos (the “Chilean IRS”) issued tax resolutions No. 184 and No. 185 of 2005, and objected certain income tax returns made by Arauco on April 16, 2001 and October 31, 2001, and furthermore, requested the reimbursement of the amounts returned in connection with tax losses, along with the amendment of the FUT (Tax Profits Fund) Registry balance. Considering the foregoing, the liquidations ordered the resolution of the historical amount as October 31, 2002 of $ 4,571,664,617 (equivalent to ThU.S.$ 5,784 as of March 31, 2023). On November 7, 2005, the Company requested a Review of the Supervision Action (Revisión de la Actuación Fiscalizadora, or “RAF”), which is an administrative review of the tax action brought by the Chilean IRS, and filed a claim disputing the above mentioned tax resolutions No. 184 and 185 of 2005. The RAF was resolved on January 9, 2009 by the Chilean IRS, partially sustaining the Company’s request, consequently, reducing the total in the amount of $ 1,209,399,164 (equivalent to ThU.S.$ 1,530 as of March 31, 2023), leaving a historical disputed total as of October 2002 of $ 3,362,265,453 (equivalent to ThU.S.$ 4,254 as of March 31, 2023). On February 19, 2010, the Court issued an order considering that the Claim that was filed as a subsidy of the RAF was formuled.

On September 26, 2014, Arauco requested the submission of this claim to the competent jurisdiction of the new Tax and Customs Courts. On October 10, 2014, Arauco’s request was granted. On September 20, 2017, the Court issued its first instance decision confirming the liquidations.

On October 12, 2017, Arauco challenged the decision through an appeal. On June 29, 2018, the Court of Appeals of Santiago issued a ruling on appeal, confirming the first instance decision. On July 19, 2018, Arauco lodged a cassation appeal based on formal and substantial flaws before the Supreme Court (rol 24.758-2018).

On June 21, 2019, Celulosa Arauco y Constitución S.A. filed a claim before the Constitutional Court to declare the legal provision contemplated under section 53, paragraph 3 of the Tax Code unconstitutional and, as a consequence, inapplicable.

On October 29, 2019 the Constitutional Court accepted the claim filed by Celulosa Arauco y Constitución S.A., finding unconstitutional and declaring the inapplicability of section 53, paragraph 3 of the Tax Code in the context of the proceeding “Celulosa Arauco y Constitución S.A. with SII Large taxpayers”, which is in the Supreme Court docket as a result of a cassation appeal (based on form and content) under case file 24,758-2018.

On January 24, 2023, a hearing of pleadings before the Supreme Court was held in this case.

On March 7, 2023, the Second Chamber of the Supreme Court (rol 24.758-2018), ruled to dismiss the cassation appeals (recursos de casación en la forma y en el fondo) lodged by Celulosa Arauco y Constitución S.A.

2. On November 28, 2022, Ingeniería y Construcción Sigdo Koppers S.A. (“ICSK”) submitted a request for arbitration before the Arbitration and Mediation Center of the Chamber of Commerce of Santiago (CAM Santiago), seeking the resolution of the disputes which have arisen between the petitioner and Celulosa Arauco y Constitucion S.A., in connection with Contract No. 906 Civil Electromechanical Assembly of Digester, Washing, Bleaching, Machine and Final Line, executed on June 18, 2019 (the “Contract”).

70

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

On April 27, 2023, the appointed arbitrator notified Arauco of ICSK’s claim. The builder demands specific performance of the contract with compensation for damages, alleging that during the performance of the Contract, certain breaches occurred which prevented the works from being executed in the envisaged and stipulated manner, along with an increase in the quantities to execute and man-hours, all issues which affected the Contract’s performance term and the works’ total price. In particular, ICSK requests that Arauco be forced to perform the Contract, as well as to pay a sum of money, which amount to the total of ThCLP$ 246,650,877 (equivalent to ThU.S$ 306,319). In addition to this, the claim states that, after the readjustments requested therein, an amount of ThCLP$ 60,657,577 (equivalent to ThU.S.$ 75,331) must be deducted, corresponding to advances that were delivered by Arauco during execution of the Contract and that were not returned.

As of this date, Arauco’s deadline to answer the lawsuit is pending.

As we will opportunely argue during the arbitration proceedings, Arauco believes that ICSK is responsible for the delays affecting the Contract’s performance, and that it owes Arauco fines for delays and other sums related to the return of advances, among other amounts. In light of this, we believe that a reasonable margin exists for a favorable outcome to be obtained by the Company.

Celulosa Arauco y Constitución S.A., Forestal Arauco S.A., Maderas Arauco S.A. and Servicios Logísticos Arauco S.A.

1. On August 13, 2018, Asociación Gremial de Dueños de Camiones de Constitución (ASODUCAM) filed a complaint seeking the performance of a contract and claiming compensation for damages against Celulosa Arauco y Constitución S.A. before the Civil Court of Constitución (C-757-2018), Forestal Arauco S.A., Maderas Arauco S.A. and Servicios Logísticos Arauco S.A., The complaint is based on alleged breaches of some agreements for the allocation, distribution and supply of cargo volumes for the years 2001 and 2005, initially executed by associates of ASODUCAM with Forestal Arauco S.A., and then, allegedly, with Servicios Logísticos Arauco S.A., in favor of the other two defendants, Celulosa Arauco and Constitución S.A. and Maderas Arauco S.A. The complaint seeks to enforce the contract, plus $575,000,000 Chilean pesos (equal to ThU.S.$ 727 as of March 31, 2023) in compensation for damages. In the alternative, it claims (a) CLP$11,189,270,050 (equivalent to ThU.S.$ 14,156 as of March 31, 2023), for actual damages; (b) CLP$ 11,189,270,050 monthly during the entire course of the trial, until the termination of the contract is declared in the final ruling, for loss of profits, and (c) CLP$5,000,000,000 (equivalent to ThU.S.$ 6,326 as of March 31, 2023) for moral damages.

On August 28, 2018 the claim was served upon Celulosa Arauco y Constitución S.A., Forestal Arauco S.A. and Maderas Arauco S.A., but notification for Servicios Logísticos Arauco S.A. is pending.

On February 28, 2023, the Court ordered the case to be closed and shelved.

71

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Forestal Arauco S.A.

On July 7, 2015 Inversiones Forestales Los Alpes Limitada and Forestal Neltume-Carrasco S.A. filed a claim against Forestal Arauco S.A. before the Civil Court of Angol (C-502-2015), in which they request that Forestal Arauco S.A. restitute the material possession of 1,855.9 hectares, which would be part of their property “Resto del Fundo Los Alpes”, which would have an area of approximately 2,700 hectares. Likewise, they requested that it be declared that the property is the exclusive domain of the actors, the restitution of the civil and natural fruits, in addition to the deteriorations that the property would have experienced, with litigation costs.

On May 29, 2019, the lawsuit was answered, and the counterclaim of the acquisitive prescription was filed.

On September 1, 2020, the court received the case. Moreover, the resolution was notified on August 30, 2022, along with the resolution to reactivate the discovery period.

On September 2, 2022, the company filed an abandonment incident of procedures, which is pending.

Considering that the Company’s position is based on solid legal grounds, there is a reasonable margin for obtaining a favorable result for the Company and therefore, as of March 31, 2023, Arauco has not made any provision whatsoever in connection with this contingency.

Arauco Argentina S.A.

Pursuant to law No. 25,080, the former Secretary of Agriculture, Livestock, Fishing and Foodstuffs, the enforcement agency referred to in the law approved, by Res. No. 952/2000, the forestry and industrial-forestry projects submitted by Arauco Argentina S.A. In the context of these projects, the Company afforested: 1) 4,777 hectares during 2000, in observance of its committed yearly plan; and 2) 23,012 hectares between 2000 and 2006 as a part of the multi-year afforestation plan. Likewise, a sawmill was built with installed capacity to produce 250,000 m3 of sawn timber per year.

On January 11, 2001, Arauco Argentina S.A. submitted an expansion for the approved industrial-forestry project. The expansion was approved via Res. No. 84/03 issued by the former Secretary of Agriculture, Livestock, Fishing and Foodstuffs. In accordance with the assumed obligations, the Company built a MDF board (panels) plant and afforested 8,089 hectares between 2001 and 2006.

Additionally, the Company has filed yearly forestry plans between years 2007 and 2020 for its local operations in the provinces of Misiones and Buenos Aires.

On March 25, 2019, the Secretary of Agriculture, Livestock and Fishing approved the resolution No. 2019-55-APN-SECAGYP#MPYT, approving the annual forestry plan for 2007. In addition, said organism through the resolution No. 2019-114-APN-SECAGYP#MPYT approved the annual forestry plan for 2009 on June 12, 2019, and through the resolution No. 2019-228-APN-SECAGYP#MPYT approved the annual forestry plan for 2008 on November 29, 2019. For this reason, Arauco Argentina S.A. may compute the exemption in the income tax related to the forest appraisal on the plantations to be harvested from the lands included in those plans as from the 2019 period.

72

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

In March 2005, Note No. 145/05 of the Subsecretary of Agriculture, Livestock and Afforestation suspended the benefit that exempted Arauco Argentina S.A. from paying export duties under Law No. 25,080. This measure is currently under discussion by the Company. On November 8, 2006, the V Chamber of the National Appeals Court for Adversarial Administrative and Federal Matters issued a ruling ordering Arauco Argentina S.A. to continue to enjoy an exemption from paying the exportation duties, in the same manner and scope it had prior to the suspension ordered by Note No. 145/05, if the clearance of merchandise is performed pursuant to the guarantee regime established in article 453, subsection a) of the Customs Code, for the exempted tax obligation. The judicial measure became effective beginning in March of 2007 by collateralization through the granting of bond (caution) policies for each shipment permits exempted from payment of export duty. The company maintains an assignment of funds equivalent to $ 23,821 March 31, 2023 for guaranteed export duties between 2007-2015, which appears under long-term provisions. Additionally, the Company filed a restitution claim for a total amount of ThU.S.$ 6,555, plus interests accrued from the service of the claim, corresponding to export duties between March 2005 and March 2007, as a result of the application of Note 145/05 issued by the Undersecretary of Agriculture, Livestock and Afforestation. The Company’s claim is being heard under case file No. 21830/2006 before the Federal Contentious Administrative Court No. 4. On October 28, 2019, a judgment of first instance was issued in said case, rejecting the claim and imposing the litigation costs on Arauco. Against that judgment, the Company filed an appeal and expressed the corresponding arguments in December 2019. On June 15, 2022, the Chamber of Appeals confirmed the judgement of first instance. On July 1, 2022, Arauco Argentina filed the Federal Extraordinary Appeal before the Supreme Court of Justice. The Chamber admitted the appeal lodged by Arauco regarding the federal matter of the litigation; however, the grounds pertaining to arbitrariness were dismissed. Arauco filed a direct complaint before the Supreme Court, seeking for the higher court to broaden its examination of the case and also address such argument. This resolution of this petition is still pending.

On the other hand, Arauco Argentina S.A. currently has a guarantee at an amount of $ 435,952,315 Argentine pesos (ThU.S.$ 2,086 as of March 31, 2023) in favor of the Secretary of Agriculture, Livestock and Fishing.

Arauco Argentina S.A. believes that it has complied with all of the obligations imposed upon it by the system set forth under Law No. 25,080.

Arauco do Brasil S.A.

1) The Federal Reserve of Brazil contested the amortization of goodwill resulting from acquisitions of Placas do Paraná, Tafibrás, Tafisa (now, Arauco do Brasil S.A.) y Dynea.

On July 20, 2015, Arauco do Brasil was notified of the first-level administrative ruling which partially upheld the infringement. Against this ruling, a Voluntary Appeal was filed seeking to revoke the Infringement Notice before the Brazilian Administrative Tax Council (Conselho Administrativo de Recursos Fiscais de Brasil or “CARF”), which is the second administrative level.

The CARF’s decision was issued on May 16, 2017 and took into consideration certain arguments presented by the Company regarding the premium but preserving other charges. On September 27, 2018, Arauco do Brasil was notified of the CARF’s decision, for which Arauco do Brasil S.A. filed an appeal for declaration embargoes, to elicit clarifications from the CARF regarding certain points of the decision. On January 25, 2019, the CARF ruled that there were no clarifications or omissions to be made and, consequently, granted a term for filing the last remedy within the administrative realm (“Special Remedy”). This Special Remedy was submitted before the Upper Chamber of Fiscal Remedies of the CARF (CSRF) on February 11, 2019, reiterating the Company’s defense allegations regarding the matters and charges that remained in such process.

73

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

On August 28, 2020, the Company was served with an intermediate decision in Grievance of Instrument, issued by CARF that divided the claim into two parts, one at the administrative level and the other one at the judicial level:

I – The administrative level fine of an estimated amount, as of March 31, 2023, of R$34.5 million (U.S.$6.8 million). Pursuant to these requirements on March 27, 2023, Arauco do Brasil adhered to the government program of reduction of fiscal litigation which permits a reduction of the 65% of the entire amount of the debt through the payment of the 35% of the debt in two ways: (a) payment in cash of the 30%, totaling R$3.7 million (U.S.$0.7 million) and (b) payment of 70% of fiscal losses, totaling R$8.6 million (U.S.$1.7 million).

In addition to the 65% savings, that lawsuit will also be closed. The closing decision is awaited.

II – Party that remained in legal lawsuit estimated amount updated with the latest decision R$ 42,167,507 (equivalent to ThU.S.$ 8,314 as of March 31, 2023). Arauco filed the Tax Debt Cancellation Action with guarantee to suspend any collection and obtain the Tax Compliance Certificates until the final decision of the trial.

On March 9, 2023, we had a first instance decision that was partially favorable to Arauco, and reducing the debt by R$ 26,554,677 (equivalent to ThU.S.$ 5,236). However, in that lawsuit, remained under discussion, with an estimated amount of R$ 15,612,831 (equivalent to ThU.S.$ 3,078). We present an appeal for clarification and then an appeal will be filed to continue questioning the point maintained, as well as there shall be an appeal from the National Farm.

Considering that the Company’s position is based on solid legal grounds, there is a reasonable margin for obtaining a favorable result for the Company and therefore, as of March 31, 2023, Arauco has not made any provision whatsoever in connection with this contingency.

2) In 2013, a service provider instituted a civil lawsuit against us seeking compensation for damages allegedly caused by Arauco’s unilateral termination of its contract in connection with the implementation of the MDF 2 line of the Jaguariaiva mill. On November 01, 2021, the Civil Court of Curitiba issued its ruling, ordering Arauco to pay to the service provider an amount of ThR$ 84,000 (ThU.S.$ 16,562 as of March 31, 2023) in consideration of the alleged damages borne by the service provider during the course of the services contracts and as a result of its early termination by Arauco.

Arauco appealed before the Court of Law of the State of Paraná and, on April 6, 2023, a judgment was issued recognizing Arauco’s allegations of procedural irregularities, and quashing the previous decision. This decision of the Court of Law of the State of Paraná can be appealed, but once it becomes final (which we deem likely), the process should return to the lower court, to continue with the production of evidence to support a new ruling.

74

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Arauco Industria de México, S.A. de C.V. (before Maderas y Sintéticos de México, S.A. de C.V.

On December 12, 2022, the Tax Administration Service issued tax credit assessment resolution number 900-04-04-00-00-00-2022-978 corresponding to the 2014 tax year. Under such assessment, objections against the following items were filed: (i) the deduction of interest in the historical amount of 85,172,274 Mexican pesos (ThU.S.$ 4,704 as of March 31, 2023), from loans granted by Masisa S.A. (Chile); (ii) the tax loss in the total amount of 275,986,671 Mexican pesos (ThU.S.$ 15,242 as of March 31, 2023); (iii) the deduction of payments made to Masisa S.A. for logistics services in the total amount of 3,058,221 Mexican pesos (ThU.S.$ 169 as of March 31, 2023); (iv) the alleged generation of non-distributed dividends related to the payments indicated in items (i) and (iii) above; (v) the rejection of contributions to the Single Contribution Account in amounts expressed in Mexican pesos of $ 342,372,000 (ThU.S. $ 18,000 as of March 31, 2023), $ 66,250,020 (ThU.S.$ 3,659 as of March 31, 2023), $ 46,389,980 (ThU.S.$ 2,562 as of March 31, 2023) and $11,457,000 (ThU.S.$ 633 as of March 31, 2023), respectively; and (vi) an alleged incorrect application of the double taxation avoidance treaty between Mexico and Chile. The total amount of omitted tax, updates, surcharges, and fines assessed to the company amounts to 416,908,418 Mexican pesos (ThU.S.$ 23,025 as of March 31, 2023).

On February 13, 2023, a motion to revoke was filed against the above assessment, before the General Legal Administration of the Tax Administration Service. Currently, additional evidence is being submitted, and subsequently, the tax authorities must issue a ruling which, if unfavorable, could be challenged by the Company before the Federal Court of Administrative Justice.

Considering that the Company’s position is supported by solid legal arguments, there is a reasonable margin to obtain a favorable outcome for the Company and therefore, as of March 31, 2023, Arauco has not yet made any provision for this contingency.

At the closing date, there are no other contingencies in which the Companies act as obligor, that may significantly affect their financial, economic or operational conditions.

Provisions recorded as of March 31, 2023 and December 31, 2022 are as follows:

	03-31-2023		12-31-2022
Classes of Provisions	ThU.S.$		ThU.S.$
Short-term provisions		10,088		9,513
Provisions for litigations		698		639
Other short-term provisions		9,390		8,874
Long-term provisions, non-Current		30,531		40,706
Provisions for litigations		30,531		39,029
Other long-term provisions		—		1,677
Total provisions		40,619		50,219

	03-31-2023
Movements in provisions	Litigations (*) ThU.S.$			Other Provisions (**) ThU.S.$			Total ThU.S.$
Opening balance		39,668			10,551			50,219
Changes in provisions
Additional provisions		15,571			385			15,956
Used provisions		(23,664	)		—			(23,664	)
Increase (decrease) in foreign exchange		(347	)		130			(217	)
Other increases (decreases)		1			(1,676	)		(1,675	)
Total changes		(8,439	)		(1,161	)		(9,600	)
Closing balance		31,229			9,390			40,619

(*) The increase in litigations is mainly made up of ThU.S.$ 15,559 (subsidiaries in Brazil) for civil and labor lawsuits. In addition, the decrease legal litigations correspond mainly to the reversal of the provision for a lawsuit with a supplier in the Arauco company.

(**) The decrease in Other Provisions corresponds to the reversal of the balance of the provision for negative equity of E2E S.A.

75

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

	12-31-2022
Movements in provisions	Litigations (*) ThU.S.$			Other Provisions ThU.S.$		Total ThU.S.$
Opening balance		29,886			—		29,886
Changes in provisions
Additional provisions		24,582			8,875		33,457
Used provisions		(13,652	)		—		(13,652	)
Increase (decrease) in foreign exchange		(1,144	)		—		(1,144	)
Other increases (decreases)		(4	)		1,676		1,672
Total changes		9,782			10,551		20,333
Closing balance		39,668			10,551		50,219

(*) The increase in litigations is mainly made up of ThU.S.$ 24,533 (subsidiaries in Brazil) for civil and labor lawsuits.

(**) The increase in Other Provisions corresponds to the dismantling L1.

Provisions for litigations are related to labor and tax claims whose payment period is uncertain. Other provisions mainly include constitution of provision for the lawsuit of export duties (see Arauco Argentina’s contingent liability set forth in this note).

76

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 19. INTANGIBLE ASSETS

	03-31-2023			12-31-2022
Classes of intangible assets, net	ThU.S.$			ThU.S.$
Intangible assets, net		70,690			73,439
Intangible assets under development (IT programs)		5,234			5,076
Computer software		20,644			22,323
Water rights		5,185			5,185
Customer relationship		22,850			24,015
Other identifiable intangible assets		16,777			16,840
Classes of intangible assets, gross		227,715			226,642
Intangible assets under development (IT programs)		5,234			5,076
Computer software		120,231			119,353
Water rights		5,185			5,185
Customer relationship		74,876			74,860
Other identifiable intangible assets		22,189			22,168
Classes of accumulated amortization and impairment
Total accumulated amortization and impairment		(157,025	)		(153,203	)
Accumulated amortization and impairment, intangible assets		(157,025	)		(153,203	)
Computer software		(99,587	)		(97,030	)
Customer relationship		(52,026	)		(50,845	)
Other identifiable intangible assets		(5,412	)		(5,328	)

Reconciliation of the carrying amount of intangible assets at the beginning and end of each reporting period balances

	03-31-2023
Reconciliation of intangible assets	Intangible assets under development ThU.S.$			Computer software ThU.S.$			Water rights ThU.S.$		Customer relationship ThU.S.$			Others ThU.S.$			Total ThU.S.$
Opening balance		5,076			22,323			5,185		24,015			16,840			73,439
Changes
Additions		237			497			—		—			19			753
Disposals		(79	)		—			—		—			—			(79	)
Amortization		—			(2,272	)		—		(1,170	)		(83	)		(3,525	)
Increase (decrease) in foreign exchange		—			96			—		5			1			102
Changes total		158			(1,679	)		—		(1,165	)		(63	)		(2,749	)
Closing balance		5,234			20,644			5,185		22,850			16,777			70,690

	12-31-2022
Reconciliation of intangible assets	Intangible assets under development ThU.S.$			Computer software ThU.S.$			Water rights ThU.S.$			Customer relationship ThU.S.$			Others ThU.S.$			Total ThU.S.$
Opening balance		4,881			27,268			5,684			29,218			17,159			84,210
Changes
Additions		1,696			3,758			2,134			—			140			7,728
Disposals		(853	)		—			(2,633	)		—			(108	)		(3,594	)
Amortization		—			(9,398	)		—			(4,969	)		(375	)		(14,742	)
Increase (decrease) in foreign exchange		—			120			—			(234	)		24			(90	)
Other increases (decreases)		(648	)		575			—			—			—			(73	)
Changes total		195			(4,945	)		(499	)		(5,203	)		(319	)		(10,771	)
Closing balance		5,076			22,323			5,185			24,015			16,840			73,439

	Years of useful life (average)
Computer software	5
Customer relationship	15
Brands	7

The amortization of customer relationship and computer software is presented in the interim consolidated statements of profit or loss under the administrative expenses line item.

77

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 20. BIOLOGICAL ASSETS

Biological assets comprise forestry plantations, mainly radiata and taeda pine, and to a lesser extent eucalyptus. The plantations are located in Chile, Argentina, Brazil and Uruguay.

As of March 31, 2023 Arauco has a total surface of 1.67 million hectares of which 964 thousand hectares are used for forestry planting, 495 thousand hectares are native forest, 111 thousand hectares are used for other purposes and 105 thousand hectares not yet planted. Lands corresponding to native forest, lands used for other purposes and lands not yet planted are presented in property, plant & equipment, Forest plantations are presented in Biological Assets.

For the period ended March 31, 2023, the production volume of logs totaled 4.3 million m3 (5.3 million m3 as of March 31, 2023).

Measurements of fair value of Arauco’s biological assets are classified as Level 3, due to the fact that inputs are not observable. However, this information reflects the assumptions that market participants would use in pricing the asset, including assumptions about risk.

These unobservable inputs were developed using the best information available and includes internal data from Arauco. These unobservable inputs can be adjusted if the available information indicates that other market participants would use different information or there is something specific in Arauco that is not available to other market participants.

The main considerations in determining the fair value of biological assets include the following:

• Arauco uses discounted expected future cash flows of its forest plantations, which are based on a harvest projection date for all existing plantations.

• Current forestry plantations are projected based on a net volume that will not decrease, with a minimum growth equivalent to the current supply demand.

• Future plantations are not considered.

• The harvest of forestry plantations supplies raw materials for all other products that Arauco produces and trades. By directly controlling the development of forests that will be processed, Arauco ensures high quality timber for each of its products.

• Expected cash flows are determined in terms of harvest and expected sale of forestry products, associated with the demand from the Company’s own industrial centers and sales to third parties at market prices. Sales margin of the different products that are harvested in the forest is also considered in the valuation. The changes in the value of the plantations pursuant to the criteria defined above are accounted for in the results for the period, as established in IAS 41. These changes are presented in the interim consolidated statements of profit or loss under the line item other income per function, which as of March 31, 2023 amounted to ThU.S.$ 52,622 (ThU.S.$ 53,704 as of March 31, 2022). The appraisal of biological assets resulted in a greater cost of the lumber sold in comparison to the real incurred cost, which is presented included in the cost of sales which as of March 31, 2023 amounted to ThU.S.$ 60,076 (ThU.S.$ 51,227 as of March 31, 2022).

• Forestry plantations are harvested according to the needs of Arauco’s production plants.

78

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

• The discount rates used are 7.0% in Chile, 8.3% Brazil, 21% in Argentina and 9% in Uruguay.

• It is expected that prices of harvested timber are constant in real terms based on market prices.

• Cost expectations with respect to the lifetime of the forests are constant based on estimated costs included in the projections made by Arauco.

• The average crop age by species and country is:

	Chile		Argentina		Brazil		Uruguay
Pine		24		15		15		—
Eucalyptus		12		10		7		10

The following table sets forth changes in fair value of biological assets considering variations in significant assumptions considered in calculating the fair value of the assets:

		ThU.S.$
Discount rate	0.5		(106,343	)
	-0.5		113,496
Margins (%)	10		420,968
	-10		(420,968	)

The significant unobservable input data used in the measurement of the fair value of biological assets are discount rates and sales margins of the different products that are harvested from the forest. Increases (decreases) in any of these input data considered in isolation would result in a smaller or greater fair value measurement.

The adjustment to fair value of biological assets minus sale costs is recorded in the interim consolidated statements of profit or loss, under the line item other income or other expenses, depending on whether it corresponds to profits or losses.

Forestry plantations classified as current biological assets are those to be harvested and sold within twelve months after the reporting period.

The Company has contracted fire insurance policies for its forestry plantations, which in conjunction with the Company’s resources, allow risks to be minimized.

As of the date of these interim consolidated financial statements, there are no committed disbursements for the acquisition of biological assets.

Detail of Biological Assets Pledged as Security

As of March 31, 2023, there are no forestry plantations pledged as security.

79

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Detail of Biological Assets with Restricted Ownership

As of the date of these interim consolidated financial statements, there are no biological assets with restricted ownership.

No significant government grants have been received.

Current and Non-Current Biological Assets

As of the date of these interim consolidated financial statements, the current and non-current biological assets are as follows:

	03-31-2023		12-31-2022
	ThU.S.$		ThU.S.$
Current		349,721		330,435
Non-current		2,834,844		2,864,935
Total		3,184,565		3,195,370

Reconciliation of carrying amount of biological assets

	03-31-2023
Movement	Current ThU.S.$			Non-current ThU.S.$			Total ThU.S.$
Opening balance		330,435			2,864,935			3,195,370
Changes in real incurred cost		6,311			30,886			37,197
Additions through acquisition		—			115,218			115,218
Sales		(105	)		(726	)		(831	)
Harvest		(26,817	)		—			(26,817	)
Increases (decreases) in foreign exchange		1,111			8,809			9,920
Loss of forest due to fires		—			(61,125	)		(61,125	)
Transfers to non-current assets held for sale		—			832			832
Transfers from non-current to current		32,122			(32,122	)		—
Changes in fair value		12,975			(60,977	)		(48,002	)
Gain (losses) arising from changes in fair value minus sale costs		—			52,622			52,622
Sales		14			(706	)		(692	)
Harvest		(58,201	)		—			(58,201	)
Loss of forest due to fires		—			(41,743	)		(41,743	)
Transfers to non-current assets held for sale		—			12			12
Transfers from non-current to current		71,162			(71,162	)		—
Total changes		19,286			(30,091	)		(10,805	)
Closing balance		349,721			2,834,844			3,184,565

	12-31-2022
Movement	Current ThU.S.$			Non-current ThU.S.$			Total ThU.S.$
Opening balance		329,586			3,008,897			3,338,483
Changes in real incurred cost		18,600			156,351			174,951
Additions through acquisition		35			293,231			293,266
Sales		(428	)		(9,512	)		(9,940	)
Harvest		(115,373	)		—			(115,373	)
Increases (decreases) in foreign exchange		(2,077	)		14,680			12,603
Loss of forest due to fires		—			(13,346	)		(13,346	)
Transfers to non-current assets held for sale		—			4,938			4,938
Transfers from non-current to current		133,640			(133,640	)		—
Decrease due to loss of control in subsidiary		2,803			—			2,803
Changes in fair value		(17,751	)		(300,313	)		(318,064	)
Gain (losses) arising from changes in fair value minus sale costs		2,345			10,587			12,932
Sales		106			(13,306	)		(13,200	)
Harvest		(320,810	)		—			(320,810	)
Loss of forest due to fires		—			(3,781	)		(3,781	)
Transfers to non-current assets held for sale		—			5,220			5,220
Transfers from non-current to current		299,498			(299,498	)		—
Decrease due to loss of control in subsidiary		1,110			465			1,575
Total changes		849			(143,962	)		(143,113	)
Closing balance		330,435			2,864,935			3,195,370

80

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Regarding the fires that occurred this year in the regions of Maule, Ñuble, Araucanía, Biobío and Los Ríos. Arauco has 47,000 hectares of productive forest plantations were affected and for which, to date, management has been carried out that has allowed to recover an approximate equivalent to 12 thousand hectares.

As of March 31, 2023 a net loss of U.S.$ 42 million was recognized for the fires, reducing the gross value of the biological assets, which represents 3.2% of the value of the forest plantations of Arauco.

NOTE 21. ENVIRONMENTAL MATTERS

Environment Management

For Arauco, sustainability means management strategy. This strategy incorporates values, commitments and standards, that together with the adoption of best practices as well as the use of the latest available technologies, seek to continuously improve the Company’s environmental management. It is the environmental department and each of its specialists that ensure these guidelines are met and are put into practice in everyday company operations.

All Arauco’s production units have certified environmental management systems, which reinforce the Company’s commitment to environmental performance and ensure the traceability of all raw materials used.

Arauco uses several supplies in its productive processes such as wood, chemical products, and water, etc., which in turn produce liquid and gas emissions. As a way to make the Company’s environmental management more efficient, significant progress has been made to reduce consumption and emissions.

Environmental investments have been made related to the control of atmospheric emissions, process improvements, water and waste management, as well as effluent treatment, in order to improve the environmental performance of all Arauco’s business units.

These investments are reflected in the interim consolidated financial statements as property, plant and equipment when they refer to disbursements in major works executed and are reflected in Expenses when they refer to improvements or management not directly associated with investment projects.

Detail information of disbursements related to the environment

As of March 31, 2023 and December 31, 2022 Arauco has made and / or has committed the following disbursements in major environmental project.

81

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

03-31-2023		Disbursements undertaken 2023				Committed Disbursements
		State	Amount	Asset	Asset/expense	Amount	Estimated
Company	Name of project	of project	ThU.S.$	Expense	destination item	ThU.S.$	date
Celulosa Arauco y Constitucion S.A.	Environmental improvement studies	In process	557	Assets	Properties, plants and equipments	4,090	2023
Celulosa Arauco y Constitucion S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	2,843	Assets	Properties, plants and equipments	9,334	2023
Celulosa Arauco y Constitucion S.A.	Investment projects for the control and management of gas emissions from industrial process	In process	147	Assets	Properties, plants and equipments	364	2023
Celulosa Arauco y Constitucion S.A.	Expansion of solid industrial waste dumpsite for management of these in the future	In process	129	Assets	Properties, plants and equipments	503	2023
Celulosa Arauco y Constitucion S.A.	Environmental improvement studies	In process	3,708	Expense	Operating costs	18,339	2023
Celulosa Arauco y Constitucion S.A.	Expansion of solid industrial waste dumpsite for management of these in the future	In process	3,826	Expense	Operating costs	—	2023
Arauco do Brasil S.A.	Environmental improvement studies	In process	556	Assets	Properties, plants and equipments	1,958	2023
Arauco Forest Brasil S.A.	Environmental improvement studies	In process	40	Assets	Properties, plants and equipments	306	2022
Arauco Industria de Paineis S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	3,822	Expense	Operating costs	—	2023
Forestal Arauco S.A.	Environmental improvement studies	In process	348	Expense	Operating costs	2,246	2022
Arauco North America, Inc	Investment projects for the control and management of gas emissions from industrial process	In process	1,481	Assets	Properties, plants and equipments	824	2023
Arauco North America, Inc	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	1,880	Assets	Properties, plants and equipments	122	2023
Arauco North America, Inc	Investment projects for the control and management of gas emissions from industrial process	Finished	284	Assets	Properties, plants and equipments	—	2022
		TOTAL	19,621			38,086

12-31-2022		Disbursements undertaken 2022				Committed Disbursements
		State	Amount	Asset	Asset/expense	Amount	Estimated
Company	Name of project	of project	ThU.S.$	Expense	destination item	ThU.S.$	date
Celulosa Arauco y Constitucion S.A.	Environmental improvement studies	In process	6,898	Assets	Property, plant and equipment	2,029	2023
Celulosa Arauco y Constitucion S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	1,540	Assets	Property, plant and equipment	10,677	2023
Celulosa Arauco y Constitucion S.A.	Investment projects for the control and management of gas emissions from industrial process	In process	167	Assets	Property, plant and equipment	687	2023
Celulosa Arauco y Constitucion S.A.	Expansion of solid industrial waste dumpsite for management of these in the future	In process	68	Assets	Property, plant and equipment	632	2023
Celulosa Arauco y Constitucion S.A.	Environmental improvement studies	In process	12,506	Expense	Operating cost	—	2023
Celulosa Arauco y Constitucion S.A.	Expansion of solid industrial waste dumpsite for management of these in the future	In process	13,556	Expense	Operating cost	—	2023
Arauco Argentina S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	119	Assets	Property, plant and equipment	169	2023
Arauco Argentina S.A.	Expansion of solid industrial waste dumpsite for management of these in the future	Finished	427	Assets	Property, plant and equipment	—	2022
Arauco Florestal Arapoti S.A.	Environmental improvement studies	Finished	724	Assets	Property, plant and equipment	—	2022
Arauco Industria de Paineis S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	4,102	Assets	Property, plant and equipment	8	2023
Arauco Industria de Paineis S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	Finished	366	Assets	Property, plant and equipment	—	2022
Forestal Arauco S.A.	Environmental improvement studies	In process	1,648	Expense	Operating cost	124	2023
Maderas Arauco S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	47	Assets	Property, plant and equipment	295	2023
Maderas Arauco S.A.	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	Finished	687	Expense	Operating cost	—	2022
Arauco North America, Inc	Investment projects for the control and management of gas emissions from industrial process	In process	684	Assets	Property, plant and equipment	1,651	2023
Arauco North America, Inc	Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants	In process	1,369	Assets	Property, plant and equipment	454	2023
		TOTAL	44,908			16,726

82

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 22. NON-CURRENT ASSETS HELD FOR SALE

The following table sets forth information on the main types of non-current assets held for sale:

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Land		175		307
Forest		—		844
Roads		—		128
Total		175		1,279

As of March 31, 2023 and December 31, 2022 there are no significant impacts on results that must be reported.

83

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 23. FINANCIAL INSTRUMENTS

23.1 Classification

Arauco’s financial instruments as of March 31, 2023 and December 31, 2022, are displayed in the table below. Regarding those instruments valued at an amortized cost, an estimation of their fair value is displayed for informational purposes.

	03-31-2023				12-31-2022
Financial instruments Thousands of dollars	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets at fair value through profit or loss (held for trading)		125,655		125,655		110,208		110,208
Derivative (1)		85		85		144		144
Mutual funds (1)		125,570		125,570		110,064		110,064
Financial assets at amortized cost		1,642,226		1,642,226		1,476,046		1,476,046
Cash and cash equivalents (amortized cost)		747,243		747,243		557,143		557,143
Cash		464,920		464,920		298,577		298,577
Time deposits		236,998		236,998		258,566		258,566
Agreements		45,325		45,325		—		—
Accounts receivable (net)		891,606		891,606		905,969		905,969
Trade receivables		622,949		622,949		726,972		726,972
Lease receivable		36,393		36,393		28,935		28,935
Sundry debtors		19,984		19,984		8,911		8,911
Other receivables		120,970		120,970		56,973		56,973
Prepayments		91,310		91,310		84,178		84,178
Accounts receivable from related parties		3,376		3,376		7,563		7,563
Other financial assets (2)		1		1		5,371		5,371
Hedging assets		136,054		136,054		73,156		73,156
Financial liabilities at amortized cost (3)		7,146,261		6,872,340		6,572,325		6,331,528
Bonds issued denominated in U.S. dollars		3,403,936		3,092,940		3,397,376		3,136,318
Bonds issued denominated in U.F. (4)		1,236,768		1,316,628		1,116,083		1,167,251
Bank borrowings in U.S. dollars		743,694		734,537		415,462		408,278
Bank borrowings in other currencies		666,551		632,923		525,215		501,492
Lease liabilities		292,727		292,727		264,224		264,224
Trade and other payables		776,966		776,966		832,954		832,954
Accounts payable to related parties		25,619		25,619		21,011		21,011
Financial liabilities at fair value through profit or loss		31		31		17		17
Hedging liabilities		66,990		66,990		76,669		76,669

(1) Although mutual funds are measured at fair value through profit or loss for purposes of the consolidated statements of financial position mutual funds are classified as “Cash and cash equivalents” due to the are highly liquid short-term investment.

(2) Corresponds to the balance of assets from margin call for current derivatives (collateral).

(3) Financial liabilities measured at amortized cost, other than “Trade and other payables”, “Accounts payable to related parties” and derivatives are presented in the consolidated statements of financial position in the line item “Other financial liabilities” as current and non-current based on their maturity.

(4) The Unidad de Fomento (“U.F.”) is a unit of account that is linked to, and is adjusted daily to reflect changes in the Chilean consumer price index.

84

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.2 Fair Value Hierarchy of Financial Assets and Liabilities

The assets and liabilities measured at fair value in the consolidated statements of financial position as of March 31, 2023 and December 31, 2022, have been measured based on the valuation methodologies provided in IFRS 13. The methodologies applied for each financial instrument are classified according to their hierarchy as follows:

• Level 1: Securities or quoted prices in active markets for identical assets and liabilities

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value	03-31-2023 ThU.S.$		Level 1 ThU.S.$		Level 2 ThU.S.$		Level 3 ThU.S.$
Financial assets at fair value through profit or loss (held for trading)
Derivatives		85		—		144		—
Mutual Funds		125,570		110,064		—		—
Derivative guarantee fund		1		—		1		—
Hedging assets		136,054		—		136,054		—
Financial liabilities at fair value through profit or loss		31		—		31		—
Hedging liabilities		66,990		—		66,990		—

Fair value	12-31-2022 ThU.S.$		Level 1 ThU.S.$		Level 2 ThU.S.$		Level 3 ThU.S.$
Financial assets at fair value through profit or loss (held for trading)
Derivatives		144		—		144		—
Mutual Funds		110,064		110,064		—		—
Hedging assets		73,156		—		73,156		—
Financial liabilities at fair value through profit or loss		17		—		17		—
Hedging liabilities		76,669		—		76,669		—

At the closing date of these interim consolidated financial statements, there have been no transfers between the different hierarchy levels.

23.3 Explanation of the valuation of Financial Instruments.

Cash and cash equivalent and accounts receivable

The carrying amount of accounts receivable, cash and cash equivalents (including mutual funds), and other financial assets and liabilities approximate their fair value due to the short-term nature of such instruments.

Derivative financial instruments

Arauco’s current derivatives are valued under the cash flow discount method. These flows are discounted at the rate applicable according to the transaction’s and counterparties’ risk, using an internal methodology based on the information obtained from Bloomberg.

85

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Given that our cross-currency swaps correspond to future flows in UF, U.S. dollars and Euros, Arauco calculates the current value of such flows by using the UF zero coupon curve, dollar zero coupon and the Euro zero coupon.

The fair value of the interest rate swap contracts is calculated by reference to the rate differential between the agreed upon rate and the market rate as of the end date of these financial statements.

The fair value of the currency forward contracts is calculated by reference to the current forward exchange rates of contracts with similar maturity profiles.

The fair value of zero cost collar contracts is calculated by reference to the price differential between the agreed price range and the market price of the hedge’s object.

The counterparty risk uses the Z-Spread obtained from the curve of the bonds issued by counterparties, and they are deducted from each flow as appropriate.

Financial Liabilities

The fair value of bonds issued was determined with reference to quoted market prices as they have standard terms and conditions.

The fair value of bank borrowings was determined based on discounted cash flow analysis applying the corresponding discount yield curves to the remaining term to maturity.

Disclosures of the fair value of financial liabilities at amortized cost are determined via the use of discounted cash flows, calculated over variables of the observable markets as of the date of informing the interim consolidated financial statements, and correspond to Level 2 of the fair value hierarchy.

86

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following table shows the compliance with the financial covenants (level of indebtedness, detailed in section 23.9.3), for the bonds issued prior to the year 2015, as required by domestic indentures (Chile):

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Interest bearing borrowings, current (a)		761,134		410,128
Other current financial liabilities		725,438		375,451
Current lease liabilities		36,349		36,784
Current hedging liabilities + current financial liabilities through profit or loss		653		2,107
Interest bearing borrowings, non-current (b)		5,582,542		5,308,232
Other non-current financial liabilities		5,392,532		5,155,371
Non-current lease liabilities		256,378		227,440
Non-current hedging liabilities + non-current financial liabilities through profit or loss		66,368		74,579
Financial debt total (c)		6,343,676		5,718,360
Cash and cash equivalents		872,813		667,207
Other current financial assets		27,591		15,350
Total cash (d)		900,404		682,557
Net financial debt (e)		5,443,272		5,035,803
Equity attributable to parent company		8,121,713		8,254,795
Non-controlling interests		4,884		5,189
Total equity (f)		8,126,597		8,259,984
Debt to equity ratio (g)		0.67		0.61

(a) Other current financial liabilities + current lease liabilities – (current hedging liabilities + current financial liabilities through profit or loss).

(b) Other non-current financial liabilities + non-current lease liabilities – (non-current hedging liabilities + non-current financial liabilities through profit or loss).

(c) Interest bearing borrowings, current + interest bearing borrowings, non-current.

(d) Cash and cash equivalents + other current financial assets.

(e) Total financial debt – total cash.

(f) Equity attributable to parent company + non-controlling interests.

(g) Net financial debt / total equity.

87

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following table shows the compliance with the financial covenants (level of indebtedness, detailed in section 23.9.3), for the bonds issued after year 2015, as required by domestic indentures (Chile):

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Other financial liabilities (a)		6,117,970		5,530,822
Other current financial liabilities		725,438		375,451
Other non-current financial liabilities		5,392,532		5,155,371
Lease liabilities (b)		292,727		264,224
Current lease liabilities		36,349		36,784
Non-current lease liabilities		256,378		227,440
Financial liabilities at fair value through profit or loss		31		17
Hedging liabilities (c)		66,990		76,669
Swaps		66,990		76,668
Forward		—		1
Financial debt total (d)		6,343,676		5,718,360
Cash and cash equivalents		872,813		667,207
Total Cash (e)		872,813		667,207
Net financial debt (f)		5,470,863		5,051,153
Equity attributable to parent company		8,121,713		8,254,795
Non-controlling interests		4,884		5,189
Total equity (g)		8,126,597		8,259,984
Debt to equity ratio (h)		0.67		0.61

(a) Other current financial liabilities + other non-current financial liabilities.

(b) Current lease liabilities + non-current lease liabilities.

(c) Swaps + forwards.

(d) Other financial liabilities + lease liabilities + financial liabilities at fair value through profit or loss + Hedging liabilities.

(e) Cash and cash equivalents + other current financial assets.

(f) Total financial debt – total cash.

(g) Equity attributable to parent company + non-controlling interests.

(h) Net financial debt / total equity.

88

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following table sets forth a reconciliation between the financial liabilities and the consolidated statements of financial position as of March 31, 2023 and December 31, 2022:

Thousands of dollars	03-31-2023
	Up to 90 days		From 91 days to 1 year		Other current financial liabilities, Total		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Other non- current financial liabilities, Total		Total
Bonds obligations		79,259		36,350		115,609		594,512		811,565		3,119,018		4,525,095		4,640,704
Bank borrowings		551,976		57,200		609,176		483,615		181,327		136,127		801,069		1,410,245
Swap and Forward		653		—		653		66,368		—		—		66,368		67,021
Total other financial liabilities (a)		631,888		93,550		725,438		1,144,495		992,892		3,255,145		5,392,532		6,117,970

Thousands of dollars	03-31-2023
	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Lease liabilities		10,436		25,913		36,349		50,259		40,025		166,094		256,378		292,727
Total lease liabilities (b)		10,436		25,913		36,349		50,259		40,025		166,094		256,378		292,727

Thousands of dollars	03-31-2023
	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Trade and other payables		728,526		26,543		755,069		21,897		—		—		21,897		776,966
Accounts payable to related companies		18,888		—		18,888		3,283		—		3,448		6,731		25,619
Total accounts payable (c)		747,414		26,543		773,957		25,180		—		3,448		28,628		802,585
Total financial liabilities (a) + (b) + (c)		1,389,738		146,006		1,535,744		1,219,934		1,032,917		3,424,687		5,677,538		7,213,282

Thousands of dollars	12-31-2022
	Up to 90 days		From 91 days to 1 year		Other current financial liabilities, Total		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Other non- current financial liabilities, Total		Total
Bonds obligations		29,114		66,436		95,550		585,518		782,344		3,050,047		4,417,909		4,513,459
Bank borrowings		109,889		167,905		277,794		368,353		164,873		129,657		662,883		940,677
Swap and Forward		2,107		—		2,107		74,579		—		—		74,579		76,686
Total other financial liabilities (a)		141,110		234,341		375,451		1,028,450		947,217		3,179,704		5,155,371		5,530,822

Thousands of dollars	12-31-2022
	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Lease liabilities		11,339		25,445		36,784		45,904		38,906		142,630		227,440		264,224
Total lease liabilities (b)		11,339		25,445		36,784		45,904		38,906		142,630		227,440		264,224

Thousands of dollars	12-31-2022
	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Trade and other payables		795,533		17,305		812,838		2,462		—		17,654		20,116		832,954
Accounts payable to related companies		14,280		—		14,280		3,283		—		3,448		6,731		21,011
Total accounts payable (c)		809,813		17,305		827,118		5,745		—		21,102		26,847		853,965
Total financial liabilities (a) + (b) + (c)		962,262		277,091		1,239,353		1,080,099		986,123		3,343,436		5,409,658		6,649,011

89

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.4 Derivative Instruments

Hedging instruments recorded as of March 31, 2023 are cash flow hedges. Arauco uses derivatives for hedging purposes, such as cross currency swaps, currency and commodity forwards, interest rate swaps, and options. Depending on the fair value of each instrument, the position could be either an asset or a liability, and they are listed in the interim consolidated statements of financial position under other non-current financial assets or other non-current financial liabilities, respectively. The effects for the period are presented in interim consolidated statement of changes in equity as other comprehensive income or the interim consolidated statements of comprehensive income as finance income or finance costs, net of differences in exchange rate of the hedged items and the deferred tax.

A summary of the derivative financial instruments included in the consolidated statements of financial position as of March 31, 2023 and December 31, 2022, is presented below:

Financial instruments	03-31-2023 Fair value ThU.S.$			12-31-2022 Fair value ThU.S.$
Financial assets at fair value through profit or loss		85			144
Derivatives (1)		85			144
Hedging assets		136,054			73,156
Derivatives (1)		17,623			17,629
Cross Currency Swaps (2)		118,431			55,527
Financial liabilities at fair value through profit or loss		(31	)		(17	)
Forward		(31	)		(17	)
Hedging liabilities		(66,990	)		(76,669	)
Derivatives (1)		(1,262	)		(650	)
Cross currency swaps (2)		(65,728	)		(76,019	)

(1) Includes HFO swap, zero cost collar, forward and IRS from Chile, USA, Argentina and Uruguay tables.

(2) Includes cross currency swaps from Chile.

90

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.4.1. Chile

In order to cover the exposure to variation in cash flows associated with fluctuations in exchange rates, interest rates or commodity prices, Arauco Chile has the following derivatives as of March 31, 2023 and December 31, 2022:

Cross Currency Swaps

Cross currency swaps to cover the exposure to the exchange rate risk generated from bonds denominated in U.F.

Bond	Institution	Amount U.S.$		Amount U.F.		Starting date		Ending date		03-31-2023 fair value ThU.S.$		12-31-2022 fair value ThU.S.$
F	Scotiabank - Chile		24,453,184		636,364		10-30-14		4-30-23		4,004		1,625
F	Scotiabank - Chile		24,422,642		636,364		10-30-14		4-30-23		4,041		1,673
F	Santander - Chile		24,167,222		636,364		10-30-14		4-30-23		4,258		1,905
F	BCI - Chile		24,500,016		636,364		10-30-21		10-30-29		4,939		2,692
F	BCI - Chile		23,940,993		636,364		10-30-14		4-30-23		4,514		2,154
F	Scotiabank - Chile		24,529,437		636,364		10-30-21		10-30-29		5,468		3,212
F	Banco de Chile - Chile		24,167,223		636,364		4-30-19		10-30-29		4,355		2,104
P	BCI – Chile		35,000,024		909,091		11-15-21		11-15-32		7,736		4,709
P	BCI – Chile		34,997,071		909,091		11-15-21		11-15-32		8,755		5,695
P	Scotiabank - Chile		38,557,134		909,091		11-15-13		11-15-23		2,310		(1,025	)
P	Santander - Chile		37,957,011		909,091		11-15-13		11-15-23		2,867		(448	)
P	Deutsche - U.K.		37,957,011		909,091		11-15-13		11-15-23		2,942		(401	)
R	Santander - Chile		128,611,183		3,000,000		10-01-14		4-01-24		4,875		(5,117	)
R	JP Morgan - U.K.		43,185,224		1,000,000		10-01-14		4-01-24		1,637		(1,725	)
R	Itau - Chile		43,277,070		1,000,000		10-01-14		4-01-24		1,520		(1,835	)
S	Santander - Chile		201,340,031		5,000,000		11-15-16		11-15-26		26,711		10,004
W	Goldman Sachs - N.A.		40,521,750		1,000,000		10-10-18		10-10-28		2,846		(167	)
W	Goldman Sachs - N.A.		40,537,926		1,000,000		10-10-18		10-10-28		2,847		(148	)
W	Scotiabank - Chile		40,066,555		1,000,000		10-10-18		10-10-28		3,409		369
X	Santander - Chile		118,400,504		3,000,000		10-10-18		10-10-38		9,889		10,457
X	Santander - Chile		97,971,786		2,500,000		10-10-18		10-10-38		8,508		8,928
											118,431		44,661

Cross currency swaps contracts to cover the exposure to the risk of the exchange rate for bank contracts in Euro.

Institution	Amount U.S.$		Amount EUR		Starting date		Ending date		03-31-2023 fair value ThU.S.$			12-31-2022 fair value ThU.S.$
Santander - Chile		97,728,235		82,352,941		6-15-21		12-15-29		(13,453	)		(13,279	)
Banco de Chile - Chile		48,864,118		41,176,471		6-15-21		12-15-29		(6,551	)		(6,491	)
MUFG - N.A.		97,728,235		82,352,941		6-15-21		12-15-29		(12,997	)		(12,898	)
JP Morgan - N.A.		195,456,471		164,705,882		6-15-21		12-15-29		(26,225	)		(26,033	)
HSBC - N.A.		48,864,118		41,176,471		6-15-21		12-15-29		(6,502	)		(6,452	)
										(65,728	)		(65,153	)

91

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.4.2. Uruguay

Forward

As of March 31, 2023 and December 31, 2022, Arauco through its subsidiaries as a joint operation (50%) in Uruguay maintains the following forward contracts in force and effect for the purposes of ensuring an exchange rate for sale of dollars:

Exchange rate	Institution	03-31-2023 notional ThU.S.$		03-31-2023 fair value ThU.S.$		12-31-2022 notional ThU.S.$		12-31-2022 fair value ThU.S.$
UYUUSD	HSBC - Uruguay		9,260		974		13,735		1,138
UYUUSD	Citibank U.K.		1,150		34		—		—
UYUUSD	Itaú - Uruguay		11,580		883		8,480		451
UYUUSD	Banco de la República Oriental de Uruguay		5,725		433		3,805		166
EURUSD	Itaú - Uruguay		630		28		859		33
EURUSD	Santander - Uruguay		1,364		9		2,416		3
EURUSD	Santander - Uruguay		—		—		—		(1	)
					2,361				1,790

Commodity Swap

Arauco Uruguay’s profits and through its subsidiaries as a joint operation (50%), also face exposure to the price variation of certain fuels, as occurs with Fuel Oil N°6, which is used during the pulp manufacturing process. In order to minimize this risk, the volatility of future flows associated to the purchase of Fuel Oil No. 6 through forwards of this commodity. The agreements that are in force and effect as of March 31, 2023 and December 31, 2022, are detailed below:

Commodity	Institution	03-31-2023 notional ThU.S.$		03-31-2023 fair value ThU.S.$			12-31-2022 notional ThU.S.$		12-31-2022 fair value ThU.S.$
Fuel Oil N°6	JP Morgan - N.A.		5,775		185			7,367		677
Fuel Oil N°6	DNB Bank ASA		9,567		7			7,366		62
Fuel Oil N°6	JP Morgan - N.A.		—		(379	)		—		(252	)
Fuel Oil N°6	DNB Bank ASA		—		(914	)		—		(397	)
					(1,101	)				90

Interest Rate Swap

In addition, Arauco through its subsidiaries as a joint operation (50%) in Uruguay maintains an Interest Rate Swap in force and effect, a derivative instrument which purpose is to set the interest rate of a variable rate debt in the same currency (USD). The valuation off this instrument as of March 31, 2023 and December 31, 2022 is shown below:

Exchange rate	Institution	Notional ThU.S.$		03-31-2023 fair value ThU.S.$		12-31-2022 fair value ThU.S.$
USD	DNB Bank ASA		4,220		63		110
					63		110

Note: The values and amounts indicated in the section 23.4.2 correspond to 50% of the total Uruguayan companies amounts, showing the participation that Arauco has in this companies.

92

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.4.3. United States

Interest Rate Swap

Arauco through its subsidiary in United States maintains an Interest Rate Swap with the purpose of setting the interest rate of a variable rate debt in the same currency (USD). The instrument was settled on September 2020 and the valuation off this instrument as of March 31, 2023 and December 31, 2022 is shown below:

Institution	Amount ThU.S.$		Starting date		Ending date		03-31-2023 fair value ThU.S.$		12-31-2022 fair value ThU.S.$
JP Morgan - N.A.		80,000,000		4-28-20		4-28-24		5,047		5,062
Goldman Sachs N.A.		80,000,000		4-28-20		4-28-24		4,950		5,004
JP Morgan - N.A.		80,000,000		4-28-20		4-28-24		5,051		5,067
								15,048		15,133

23.4.4. Argentina

As of March 31, 2023 and December 31, 2022, Arauco through its subsidiary in Argentina maintains the following forward contracts in force and effect for the purposes of ensuring an exchange rate of dollars:

Exchange rate	Institution	Amount ThU.S.$		Starting date		Ending date		03-31-2023 fair value ThU.S.$		12-31-2022 fair value ThU.S.$
ARSUSD	BBVA - Argentina		6,000		03-30-23		04-28-23		44		(17	)
									44		(17	)

93

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.5 Cash equivalent, Loans and Receivables

The financial assets measured at amortized cost using the effective interest method and tested for impairment are: cash and cash equivalent, time deposits, repurchase agreements, trade and other current/non-current receivables (with third parties and from related parties).

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. In the consolidated statements of financial position, they are included in line items “Cash and cash equivalents” (certain components of cash and cash equivalents), “Trade and other current/non-current receivables” and “Accounts receivable from related parties”.

As of March 31, 2023 and December 31, 2022, there are provisions for impairment for ThU.S.$ 7,881 and ThU.S.$ 7,960, respectively.

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Financial assets at amortized cost		1,642,226		1,476,046
Cash and cash equivalents (Mutual Funds not included)		747,243		557,143
Cash		464,920		298,577
Time deposits		236,998		258,566
Agreements		45,325		—
Accounts receivables (net)		894,982		913,532
Trade receivables		622,949		726,972
Lease receivable		36,393		28,935
Sundry debtors		19,984		8,911
Other receivables		120,970		56,973
Prepayments		91,310		84,178
Accounts receivable from related parties		3,376		7,563
Other financial assets		1		5,371

23.5.1. Cash and Cash Equivalents

Includes cash on hand, bank checking account balances and time deposits and other short-term highly liquid investments with an original maturity of three months or less. They are short-term, highly liquid investments that are readily convertible to known amounts of cash, and which are subject to an insignificant risk of changes in value.

The composition of cash and cash equivalents (including the balance of mutual funds displayed in this note as valuation, instruments at fair value with profit or loss) at March 31, 2023 and December 31, 2022, classified by currency is as follows:

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Cash and cash equivalents		872,813		667,207
U.S. dollars		458,284		395,254
Euro		5,508		4,884
Mexican pesos		44,358		28,564
Other currencies		296,780		228,481
Chilean pesos		67,883		10,024

23.5.2 Time Deposits and Repurchase Agreements: The investment objective of time deposits and repurchase agreements is to maximize in the short-term the amounts of cash surpluses. These instruments are authorized by Arauco’s Investment Policy, which allows investing in fixed income securities. These instruments have a maturity of less than three months from the date of acquisition.

94

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.5.3 Trade and Other Receivables: These represent enforceable rights for Arauco resulting from the normal course of the business.

23.5.4 Sundry debtors: These correspond to receivables from sales, services or loans that are not considered within the normal course of the business.

The allowance for doubtful accounts is presented as a deduction of trade and other receivables. The provision for doubtful accounts is established based on an analysis of the age of the portfolio and considering the insurance coverage on accounts receivable. Other conditions are assessed for example when there is objective evidence that Arauco will not receive payments under the original sale terms and when the customer is a party to a bankruptcy court agreement or cessation of payments, and is written-off when Arauco has exhausted all levels of recovery of the receivable in a reasonable time.

23.5.5 Accounts receivable from related parties: Represent enforceable rights for Arauco resulting from the normal course of business, calling normal to the line of business, activity or purpose of exploitation and financing, and which Arauco owns a non-controlling ownership of the counterparty.

The following table sets forth trade and other current/non-current receivables classified by currencies as of March 31, 2023 and December 31, 2022:

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Trade and other current receivables		853,093		873,295
U.S. dollars		555,578		614,204
Euros		39,417		36,425
Mexican pesos		34,713		33,089
Other currencies		96,727		85,905
Chilean pesos		118,401		97,616
U.F.		8,257		6,056
Accounts receivable from related parties, current		3,376		7,563
U.S. dollars		2,122		—
Other currencies		766		4,713
Chilean pesos		488		2,850
Trade and other non-current receivables		38,513		32,674
U.S. dollars		5,769		5,880
Chilean pesos		3,556		3,434
U.F.		29,188		23,360

23.6 Financial Liabilities

Arauco’s financial liabilities to the date of these interim consolidated financial statements are as follows:

Financial liabilities	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Total financial liabilities		7,213,282		6,649,011
Financial liabilities at fair value through profit or loss		31		17
Hedging liabilities		66,990		76,669
Financial liabilities at amortized cost		7,146,261		6,572,325

95

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following table sets forth the current portion of the non-current bank borrowings and debt issued as of March 31, 2023 and December 31, 2022.

	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
Bank borrowings - current portion		117,264		139,252
Bonds issued - current portion		115,609		95,550
Total		232,873		234,802

23.7 Financial Liabilities Measured at Amortized Cost

Financial liabilities correspond to non-derivative financial instruments with contractual cash-flow payments that can be either fixed or variable.    

Also, this category includes those non-derivative financial liabilities for services or goods delivered to Arauco at the end of each reporting period that have not yet been paid. These amounts are not insured and are generally paid within thirty days after being recognized.

At the end of these financial statements, Arauco includes in this category bank borrowings, bonds issued denominated in U.S. dollars and in U.F., lease liabilities, and trade and other payables.

	Currency	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$		03-31-2023 ThU.S.$		12-31-2022 ThU.S.$
		Amortized cost				Fair value
Total financial liabilities			7,146,261		6,572,325		6,872,340		6,331,528
Bonds issued	U.S. dollar		3,403,936		3,397,376		3,092,940		3,136,318
Bonds issued	U.F.		1,236,768		1,116,083		1,316,628		1,167,251
Bank borrowings	U.S. dollar		743,694		415,462		734,537		408,278
Bank borrowings	Euro		476,290		455,325		632,923		501,492
Bank borrowings	Other currencies		190,261		69,890		—		—
Lease liabilities	U.F.		18,904		16,936		18,904		16,936
Lease liabilities	Chilean pesos		8,698		11,265		8,698		11,265
Lease liabilities	Mexican pesos		3,042		3,238		3,042		3,238
Lease liabilities	U.S. dollar		129,314		131,292		129,314		131,292
Lease liabilities	Euro		177		201		177		201
Lease liabilities	Other currencies		132,592		101,292		132,592		101,292
Trade and other payables	U.S. dollar		222,965		234,226		222,965		234,226
Trade and other payables	Euro		24,632		23,277		24,632		23,277
Trade and other payables	Mexican pesos		18,719		16,791		18,719		16,791
Trade and other payables	Other currencies		144,625		150,004		144,625		150,004
Trade and other payables	Chilean pesos		320,608		369,300		320,608		369,300
Trade and other payables	U.F.		45,417		39,356		45,417		39,356
Accounts payable to related parties	U.S. dollar		184		202		184		202
Accounts payable to related parties	Other currencies		2,218		—		2,218		—
Accounts payable to related parties	Chilean pesos		23,217		20,809		23,217		20,809

96

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The financial liabilities at amortized cost presented in the interim consolidated statements of financial position as of March 31, 2023 and December 31, 2022 are as follows:

	03-31-2023 ThU.S.$
	Current		Non-current		Total
Other financial liabilities		724,785		5,326,164		6,050,949
Lease liabilities		36,349		256,378		292,727
Trade and other payables		755,069		21,897		776,966
Accounts payable to related parties		18,888		6,731		25,619
Total financial liabilities at amortized cost		1,535,091		5,611,170		7,146,261

	12-31-2022 ThU.S.$
	Current		Non-current		Total
Other financial liabilities		373,344		5,080,792		5,454,136
Lease liabilities		36,784		227,440		264,224
Trade and other payables		812,838		20,116		832,954
Accounts payable to related parties		14,280		6,731		21,011
Total financial liabilities at amortized cost		1,237,246		5,335,079		6,572,325

23.8 Cash Flow Hedges Reserve Reconciliation

The following table sets forth the reconciliation balances of cash flow hedges presented in the interim consolidated statements of comprehensive income:

	January - March
	2023 ThU.S.$			2022 ThU.S.$
Opening balance		(10,112	)		(136,859	)
Gains (losses) on cash flow hedges, before tax		(40,398	)		107,321
Income tax relating to cash flow hedges of other comprehensive income		12,162			(23,397	)
Closing balance		(38,348	)		(52,935	)

23.9 Capital Disclosures

23.9.1 Information on Objectives, Policies and Processes applied by the Company regarding Capital Management

Arauco’s policies on capital management have the objective of:

a) Ensuring business continuity and normal operations in the long-term;

b) Ensuring funding for new investments to achieve sustainable growth over time;

c) Keeping adequate capital structure considering all economic cycles that impact the business and the nature of the industry; and

d) Maximizing the Company’s value and providing an adequate return to shareholders.

23.9.2 Qualitative Information on Objectives, Policies and Processes applied by the Company regarding Capital Management

Arauco determines and manages its capital structure based on its carrying amount of equity plus its financial debt (bank borrowings and bonds issued).

97

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.9.3 Quantitative Information on Capital Management

The following table sets forth the financial covenants that the Company has to comply with as part of the terms of certain of its obligations:

Instrument	03-31-2023 ThU.S.$		12-31-2022 ThU.S.$		Interest coverage >= 2,0x	Debt level (1) <= 1,2x
Domestic bonds (Chile)		1,236,768		1,116,083	N/R	ü
Syndicate borrowing - Grayling		246,513		242,483	ü	ü
Syndicate ECA - MAPA		476,290		455,325	ü	ü

N/R: Not required for the financial obligation.

(1) Debt to equity ratio (financial debt divided by equity plus non-controlling interests).

As of March 31, 2023 and December 31, 2022, Arauco has complied with all of its financial covenants.

The following table sets forth the credit ratings of our debt instruments as of March 31, 2023, are as follows:

Instrument	Standard & Poor’s	Fitch Ratings	Moody’s	Feller Rate
Local bonds	—	AA	—	AA
Foreign bonds	BBB-	BBB	Baa3	—

Capitalization requirements are established based on the Company’s financial needs and on maintaining an adequate liquidity level and complying with financial covenants established in current debt arrangements. The Company manages its capital structure and makes adjustments based on the prevailing economic conditions in order to mitigate the risks associated with adverse market conditions and based on opportunities that may arise to improve the Company’s level of liquidity.

The capitalization of Arauco as of March 31, 2023 and December 31, 2022 is as follows:

	03-31-2023		12-31-2022
	ThU.S.$		ThU.S.$
Equity		8,126,597		8,259,984
Bank borrowings		1,410,245		940,677
Lease liabilities		292,727		264,224
Bonds issued		4,640,704		4,513,459
Capitalization		14,470,273		13,978,344

23.10 Risk Management

Arauco’s financial instruments are exposed to various financial risks: credit risk, liquidity risk and market risk (including exchange rate risks, interest rate risks and price risks). Arauco’s overall risk management program focuses on uncertainty in financial markets and aims to minimize potential adverse effects on Arauco’s financial profitability.

Arauco’s financial risk management is overseen by the Corporate Finance Department. This department identifies, assesses and hedges financial risks in close collaboration with Arauco’s operational units. The company is not actively involved in trading its financial assets for speculative purposes.

98

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.10.1 Type of Risk: Credit Risk

Description

Credit risk refers to financial uncertainty at different periods of time relating to the fulfillment of obligations with counterparties, at the time of exercising the contract rights to receive cash or other financial assets on behalf of Arauco.

Explanation of Credit Risk Exposure and How This Risk Arises

Arauco’s exposure to credit risk is directly related to each of its customer’s individual abilities to fulfill their contractual commitments, reflected in trade receivables.

Accounts exposed to credit risk are trade receivables, financial lease debtors and other debtors.

Arauco does not have a securitized portfolio.

	03-31-2023		12-31-2022
	ThU.S.$		ThU.S.$
Current receivables
Trade receivables		622,913		726,936
Lease receivable		6,719		5,067
Sundry debtors		15,644		4,451
Other receivables		118,299		54,525
Prepayments		89,518		82,316
Net subtotal		853,093		873,295
Trade receivables		627,432		731,445
Lease receivable		6,719		5,067
Sundry debtors		16,007		4,866
Other receivables		119,431		55,687
Prepayments		89,518		82,316
Gross subtotal		859,107		879,381
Provision for doubtful trade receivables		4,519		4,509
Provision for doubtful lease receivable		—		—
Provision for doubtful sundry debtors		363		415
Provision for doubtful other receivables		1,132		1,162
Subtotal bad debt		6,014		6,086
Non-current receivables
Trade receivables		36		36
Lease receivable		29,674		23,868
Sundry debtors		4,340		4,460
Other receivables		2,671		2,448
Prepayments		1,792		1,862
Net subtotal		38,513		32,674
Trade receivables		1,903		1,910
Lease receivable		29,674		23,868
Sundry debtors		4,340		4,460
Other receivables		2,671		2,448
Prepayments		1,792		1,862
Gross subtotal		40,380		34,548
Provision for doubtful trade receivables		1,867		1,874
Provision for doubtful lease receivable		—		—
Provision for doubtful sundry debtors		—		—
Provision for doubtful other receivables		—		—
Subtotal bad debt		1,867		1,874

99

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Explanation of Risk Management Objectives, Policies and Processes, and Measurement Methods

The Credit and Collections Sub-Division, dependent from the Treasury Department, is the area entrusted with minimizing the credit risk of the accounts receivable, supervising the delinquency of the accounts. The regulations and procedures applicable for the control and administration of the Arauco Group can be found in the Corporate Credit Policy.

As of March 31, 2023, Arauco’s balance for commercial debtors was ThU.S.$ 629,335 of which, according to the agreed sales conditions, 62.74% corresponded to sales on credit (open account), 34.73% to sales with letters of credit and 2.53% to other types of sales. The client with the largest Open Account debt represented 2.63% of the total accounts receivable as of that date.

Below we provide detail regarding accounts receivable, classified in tranches:

March 31, 2023

Age of trade receivables

Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
N° debtor		1,606			512			68			31			29			24			20			12			10			68			2,380
ThU.S.$		599,909			19,895			1,024			2,340			218			229			138			78			70			5,434			629,335
%		95.34	%		3.16	%		0.16	%		0.37	%		0.03	%		0.04	%		0.02	%		0.01	%		0.01	%		0.86	%		100	%

December 31, 2022

Age of trade receivables

Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
N° debtor		1,500			689			69			43			37			25			18			27			16			62			2,486
ThU.S.$		700,691			23,995			1,941			474			352			133			87			94			67			5,521			733,355
%		95.56	%		3.27	%		0.26	%		0.06	%		0.05	%		0.02	%		0.01	%		0.01	%		0.01	%		0.75	%		100	%

Arauco applies the simplified approach regarding the expected losses from commercial debtors, which allows for the use of an estimate of expected credit losses over the instrument’s lifespan for all commercial accounts receivable. In order to establish this estimate, the commercial debtors have been grouped in relation to the corresponding risks for sales conditions as well as for tranches, including clients that are up-to-date or in default.

March 31, 2023:

Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
Letters of credit		218,403			162			—			—			—			—			—			—			—			—			218,565
Loss allowance provision		—			—			—			—			—			—			—			—			—			—			—
Expected loss rate		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Credit line		372,031			15,599			824			2,296			208			229			138			72			39			3,429			394,865
Loss allowance provision		1,545			—			24			230			20			23			13			72			39			2,382			4,348
Expected loss rate		0.42	%		0.00	%		2.90	%		10.01	%		9.81	%		9.96	%		9.64	%		100.14	%		100.51	%		69.45	%
Others		9,475			4,134			200			44			10			—			—			6			31			2,005			15,905
Loss allowance provision		—			—			2			4			5			—			—			5			31			1,989			2,037
Expected loss rate		0.00	%		0.00	%		0.85	%		9.77	%		51.00	%		0.00	%		0.00	%		90.00	%		100.00	%		99.20	%
Total trade receivables (ThU.S.$)		599,909			19,895			1,024			2,340			218			229			138			78			70			5,434			629,335
Total allowance for doubtful accounts (ThU.S.$)		1,545			—			26			234			26			23			13			78			70			4,371			6,385

December 31, 2022:

Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
Letters of credit		335,897			1,080			10			—			—			—			—			—			—			—			336,987
Loss allowance provision		—			—			—			—			—			—			—			—			—			—			—
Expected loss rate		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Credit line		363,423			22,175			1,791			300			299			100			87			93			67			3,505			391,840
Loss allowance provision		1,545			—			59			34			38			10			9			93			41			2,487			4,316
Expected loss rate		0.43	%		0.00	%		3.27	%		11.22	%		12.74	%		9.52	%		9.82	%		99.08	%		60.88	%		70.95	%
Others		1,371			740			140			174			53			33			—			1			—			2,016			4,528
Loss allowance provision		—			—			1			17			31			19			—			1			—			2,000			2,069
Expected loss rate		0.00	%		0.00	%		0.85	%		9.94	%		57.52	%		55.92	%		0.00	%		96.35	%		0.00	%		99.25	%
Total trade receivables (ThU.S.$)		700,691			23,995			1,941			474			352			133			87			94			67			5,521			733,355
Total allowance for doubtful accounts (ThU.S.$)		1,545			—			60			51			69			29			9			94			41			4,487			6,385

100

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Arauco does not conduct rescheduling or renegotiations with its clients that imply an amendment to the maturity of the invoices and, should it be necessary, any debt renegotiation with a client shall be analyzed on a case-by-case basis and subjected to the approval of the Corporate Finance Division.

Regarding the loss allowance for trade receivables and others, below we provide detail for the movements as of March 31, 2023 and December 31, 2022:

	03-31-2023			12-30-2022
	ThU.S.$			ThU.S.$
Opening loss allowance as at January 1		7,960			8,792
Increase in loan loss allowance recognized in profit or loss during the year		309			1,097
Receivables written off during the year as uncollectible		—			(321	)
Unused amount reversed		(388	)		(1,608	)
Closing balance		7,881			7,960

Currently there is a policy for provisions for doubtful accounts receivable under IFRS for all the Arauco group companies.

Explanation regarding the Sales Risk with Letters of Credit

The sales with letters of credit mainly occur in markets in Asia and the Middle East. Periodically, a credit assessment is conducted regarding the banks that issue the letters of credit with the purpose of obtaining their score over the basis of risk-qualification ratings, country-specific risk and financial statements. The decision of approving the issuing bank or asking for confirmation of the letter of credit is made in consideration to this assessment.

Explanation of the Sales Risk with Credit Line

Sales on credit are subject to the credit limit for each customer. The approval or rejection of a credit limit for all term sales is conducted by the Corporate Credit Sub-Division, as well as by the Credit and Collections area for North America, Brazil and Argentina, which report to the Corporate Finance Division. The regulations and procedures applicable for the correct control and risk management over the sales on credit are ruled by the Credit Policy.

A procedure that must be applied by all the companies of the Arauco group has been established for the approval and/or modification of client credit lines. Credit line requests are entered to the SAP that analyzes all available information. Afterwards, the same are either approved or rejected in each one of the internal committees of each company belonging to the Arauco group, depending on the maximum amount authorized by the Credit Policy. Lines of credit are renewed during this internal process on a yearly basis.

All sales are automatically controlled by a credit verification system, which has been configured to block any orders from clients who are delinquent in a given percentage of a debt and/or from clients whose line of credit, as of the time of the product’s shipping, has been exceeded or is overdue.

101

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

In order to minimize the credit risk for term or Open Account sales, it is Arauco’s policy to take out insurance to cover the export sales of companies Celulosa Arauco y Constitución S.A., Maderas Arauco S.A., Forestal Arauco S.A., Arauco Argentina S.A., and Arauco do Brasil S.A., as well as the domestic sales of Arauco Europe Coöperatief U.A., Arauco Argentina S.A., Araucomex S.A. de C.V., Arauco Industria de México, S.A. de C.V., Arauco Colombia S.A., Arauco Peru S.A., Arauco North America, Inc., Arauco Canada Ltd., Celulosa Arauco y Constitución S.A., Maderas Arauco S.A., Arauco Florestal Arapoti S.A., Arauco Forest Brasil S.A., Arauco do Brasil S.A. and Arauco Industria de Paineis S.A. Arauco works with credit insurance company Allianz Trade For Multinationals (Aa3 rating, as per risk rating companies Moody’s).

As another way of minimizing risk and supporting a line of credit approved by the Credit Committee, Arauco holds guarantees such as mortgages, pledges, Standby letters of credit, bank performance bonds, checks, promissory notes, borrowings or any other that could be required under the laws of each country. The total amount held in guarantees amounts to ThU.S.$ 110,257, effective as of March 31, 2023, as summarized in the following chart. The procedure for guarantees is regulated by Arauco’s Policy on Guarantees, whose purpose is to control their accounting, due date and custody.

Guarantees Arauco group (ThU.S.$)
Guarantees debtors (received from clients)
Certificate of deposits	6,665	6.0	%
Standby	19,419	17.6	%
Promissory notes	76,363	69.3	%
Finance	2,941	2.7	%
Mortgage	1,140	1.0	%
Pledge	632	0.6	%
Loan agreement	3,097	2.8	%
Total guarantees	110,257	100.0	%

The maximum exposure to credit risk is limited to the value at amortized cost of the Debtors’ account for sales registered as of the date of this report, minus the percentage of sales insured by the aforementioned credit insurance companies and the guarantees granted in favor of Arauco.

In summary, the open account debt covered by the various insurance policies and guarantees amounts to 99.2% and, therefore, Arauco’s portfolio exposure amounts to 0.8%.

Secured open accounts receivable	ThU.S.$		%
Total open accounts receivable		435,287		100.0	%
Secured receivables (*)		431,715		99.2	%
Unsecured receivables		3,572		0.8	%

(*) Insured debt is deemed to be the portion of accounts receivable that is covered by a credit company or by guarantees such as standby letters of credit, mortgages, performance bonds, among others.

102

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Investment Policy:

Arauco has an Investment Policy which identifies and limits the financial instruments and the entities into which the Arauco companies, in particular Celulosa Arauco y Constitucion S.A., are authorized to invest. The Company’s Treasury Department is centralized with operations in Chile. The Head Office is responsible for carrying out investments, cash flow surplus investments, and short and long-term debt subscriptions. Exceptions to this rule apply to short and long-term debt, and will be for specific investments made through other companies where authorization is required from the Chief Financial Officer.

For financial instruments, the only permitted investments are fixed income investments with adequate liquidity. Each instrument has defined classifications and limits, depending on duration and type of issuer.

Regarding intermediaries (such as banks, securities brokers and dealers of mutual funds that are bank affiliates), a scoring methodology is used to determine the relative degree of risk of each intermediary based on their financial position and assign score points that result in a credit risk rating to each intermediary. Arauco uses this scoring system to determine its investment limits for each intermediary.

The required information to evaluate the various criteria are obtained from published financial statements from the banks under evaluation and from the credit risk ratings of short and long-term debt securities obtained from rating agencies authorized by the Superintendence of Banks and Financial Institutions (Fitch Ratings Chile, Humphreys and Feller Rate).

Any necessary exceptions regarding investment limits in each particular instrument or entity must have the authorization from Arauco’s Chief Financial Officer.

23.10.2 Type of Risk: Liquidity Risk

Description

This risk corresponds to Arauco’s ability to fulfill its financial obligations upon maturity.

Explanation of Liquidity Risk Exposure and How This Risk Arises

Arauco’s exposure to liquidity risk is mainly from its obligations to bondholders, banks and financial institutions, creditors and other payables. Liquidity risk may arise if Arauco is unable to meet the net cash flow requirements, which sustain its operations under both normal and exceptional circumstances.

Explanation of Objectives, Policies and Processes for Risk Management, and Measurement Methods

The Corporate Financial Management Division monitors on an ongoing basis the Company’s cash flow forecasts based on short and long-term forecasts and available financing alternatives. In order to manage the risk level of financial assets, Arauco follows its investment policy.    

The following tables detail Arauco’s liquidity analysis for its financial liabilities as of March 31, 2023 and December 31, 2022. The tables have been drawn up based on the contractual undiscounted cash outflows and their remaining contractual maturities.

103

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

March 31, 2023				Maturity														Total				Effective rate			Nominal rate
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		Years		years		years		Years		years		Current		current
Tax ID	Name	Currency	Bank borrowings	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
93.458.000-1	Celulosa Arauco y Constitución S.A.	Euros	BNP paribas / ECA		—		72,145		67,819		67,105		66,435		65,755		129,479		72,145		396,593		1.10	%	1.06%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco Estado		70,023		—		—		—		—		—		—		70,023		—		5.20	%	Fixed 5.20%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco De Chile		70,035		—		—		—		—		—		—		70,035		—		5.40	%	Fixed 5.40%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco Estado		50,340		—		—		—		—		—		—		50,340		—		5.32	%	Fixed 5.32%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	BCI		70,475		—		—		—		—		—		—		70,475		—		5.42	%	Fixed 5.42%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	ITAU		50,158		—		—		—		—		—		—		50,158		—		5.98	%	Fixed 5.98%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Scotiabank		50,000		—		—		—		—		—		—		50,000		—		5.95	%	Fixed 5.95%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco Santander		50,000		—		—		—		—		—		—		50,000		—		5.84	%	Fixed 5.84%
—	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco Interamericano de Desarrollo A		—		1,081		—		—		—		—		—		1,081		—		7.10	%	2.05% + libor 6m
—	Celulosa y Energia Punta Pereira S.A.	U.S. dollar	Banco Interamericano de Desarrollo A		—		4,299		—		—		—		—		—		4,299		—		7.10	%	2.05% + libor 6m
—	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco BBVA		5,122		—		—		—		—		—		—		5,122		—		4.95	%	Fixed 4.95%
—	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		27,688		—		—		—		—		—		—		27,688		—		1.40	%	Fixed 1.4%
—	Stora Enso Uruguay S.A.	U.S. dollar	Banco República Oriental del Uruguay		2,517		—		—		—		—		—		—		2,517		—		1.40	%	Fixed 1.4%
—	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		7,551		—		—		—		—		—		—		7,551		—		1.40	%	Fixed 1.4%
—	Eufores S.A.	U.S. dollar	Banco Itaú		15,382		—		—		—		—		—		—		15,382		—		5.17	%	Fixed 5.165%
—	Eufores S.A.	U.S. dollar	Santander		21,382		—		—		—		—		—		—		21,382		—		5.12	%	Fixed 5.12%
—	Arauco Forest Brasil S.A.	Brazilian real	Banco Safra S.A.		—		5,763		12,390		17,486		15,528		7,041		—		5,763		52,445		15.30	%	CDI + 1.65%
—	Mahal Empreendimentos e Participações S.A.	Brazilian real	Banco Safra S.A.		2,180		2,143		13,827		12,354		10,915		—		—		4,323		37,096		15.20	%	CDI + 1.55%
—	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		—		74		74		566		—		—		—		74		640		15.40	%	CDI + 1.75%
—	Arauco Celulose do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		—		10,239		10,301		79,193		—		—		—		10,239		89,494		15.27	%	CDI + 1.62%
—	Arauco Celulose do Brasil S.A.	Brazilian real	Banco BTG pactual S.A.		—		7,197		23,785		21,306		18,819		—		—		7,197		63,910		15.21	%	CDI + 1.56%
—	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		236		—		—		—		—		—		—		236		—		13.20	%	Fixed 13%
—	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		—		298		—		—		—		—		—		298		—		13.70	%	Fixed 13.5%
—	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		—		1,183		—		—		—		—		—		1,183		—		13.70	%	Fixed 13.5%
—	Arauco North America, Inc.	U.S. dollar	Banco Itau Corpbanca – NY Branch		—		45,532		217,034		—		—		—		—		45,532		217,034		6.59	%	1.65% + libor 6m
			Total		493,089		149,954		345,230		198,010		111,697		72,796		129,479		643,043		857,212

March 31, 2023				Maturity														Total				Effective rate			Nominal rate
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		years		years		years		years		years		Current		current
Tax ID	Name	Currency	Bonds	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		13,241		13,026		25,406		24,546		23,685		22,825		43,068		26,267		139,530		4.25	%		4.25	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		5,296		5,210		10,162		9,818		9,474		9,130		17,227		10,506		55,811		4.24	%		4.25	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-P		14,281		14,078		27,549		26,739		25,928		25,118		113,435		28,359		218,769		3.95	%		4.00	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-R		4,015		4,015		8,030		8,030		8,030		8,030		285,270		8,030		317,390		3.56	%		3.60	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-S		2,685		2,685		5,369		5,369		230,414		—		—		5,370		241,152		2.43	%		2.40	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-W		1,410		1,410		2,821		2,821		2,821		2,821		137,847		2,820		149,131		2.11	%		2.10	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-X		3,320		3,320		6,639		6,639		6,639		6,639		353,777		6,640		380,333		2.68	%		2.70	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2024		—		22,500		511,250		—		—		—		—		22,500		511,250		4.51	%		4.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2027		9,688		9,688		19,375		19,375		19,375		509,688		—		19,376		567,813		3.89	%		3.88	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2047		11,000		11,000		22,000		22,000		22,000		22,000		840,000		22,000		928,000		5.50	%		5.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2029		10,625		10,625		21,250		21,250		21,250		21,250		531,875		21,250		616,875		4.26	%		4.25	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2049		13,750		13,750		27,500		27,500		27,500		27,500		1,091,250		27,500		1,201,250		5.50	%		5.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2030		—		21,000		21,000		21,000		21,000		21,000		542,000		21,000		626,000		4.20	%		4.20	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2050		—		25,750		25,750		25,750		25,750		25,750		1,066,500		25,750		1,169,500		5.16	%		5.15	%
			Total		89,311		158,057		734,101		220,837		443,866		701,751		5,022,249		247,368		7,122,804

104

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

March 31, 2023					Maturity														Total
					Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
					months		months		years		years		years		years		years		Current		current
Tax ID		Name	Currency	Underlying asset class	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
	85.805.200-9	Forestal Arauco S.A.	U.F.	Motor vehicles		290		600		556		466		188		—		—		890		1,210
	85.805.200-9	Forestal Arauco S.A.	U.F.	Lands		—		513		513		448		448		448		7,547		513		9,404
	85.805.200-9	Forestal Arauco S.A.	U.S. dollar	Lands		60		180		240		240		240		240		180		240		1,140
	85.805.200-9	Forestal Arauco S.A.	U.F.	Plants and equipments		106		317		246		874		—		—		—		423		1,120
	85.805.200-9	Forestal Arauco S.A.	Chilean pesos	Plants and equipments		185		349		449		799		318		71		—		534		1,637
	—	Arauco Argentina S.A.	U.S. dollar	Buildings and constructions		146		439		477		—		—		—		—		585		477
	—	Arauco Argentina S.A.	U.S. dollar	IT equipment		6		4		—		—		—		—		—		10		—
	—	Arauco Argentina S.A.	U.S. dollar	Plants and equipments		250		752		418		—		—		—		—		1,002		418
	—	Arauco Argentina S.A.	U.S. dollar	Motor vehicles		411		1,125		375		—		—		—		—		1,536		375
	—	Arauco Florestal Novo Oeste	Brazilian real	Motor vehicles		3		—		—		—		—		—		—		3		—
	—	Arauco Florestal Novo Oeste	Brazilian real	Buildings and constructions		1		1		—		—		—		—		—		2		—
	—	Arauco Industria de Paineis S.A.	Brazilian real	Buildings and constructions		10		6		—		—		—		—		—		16		—
	—	Arauco Industria de Paineis S.A.	Brazilian real	IT equipment		4		13		17		7		—		—		—		17		24
	—	Arauco Industria de Paineis S.A.	Brazilian real	Motor vehicles		10		28		2		—		—		—		—		38		2
	—	Arauco Forest Brasil S.A.	Brazilian real	Lands		1,235		4,166		5,307		5,307		5,307		2,212		—		5,401		18,133
	—	Arauco Forest Brasil S.A.	Brazilian real	Motor vehicles		144		401		16		—		—		—		—		545		16
	—	Arauco Florestal Arapoti S.A.	Brazilian real	Motor vehicles		43		72		29		16		15		—		—		115		60
	—	Arauco do Brasil S.A.	Brazilian real	Buildings and constructions		54		161		—		—		—		—		—		215		—
	—	Arauco do Brasil S.A.	Brazilian real	IT equipment		26		47		4		—		—		—		—		73		4
	—	Arauco do Brasil S.A.	Brazilian real	Motor vehicles		8		22		16		16		14		—		—		30		46
	—	Arauco Celulose do Brasil S.A.	Brazilian real	Lands		1,211		6,293		6,434		6,434		6,434		6,434		85,139		7,504		110,875
	—	Mahal Empreendimentos e Participações S.A.	Brazilian real	Motor vehicles		197		497		265		112		—		—		—		694		377
	—	Mahal Empreendimentos e Participações S.A.	Brazilian real	Lands		—		2,682		2,507		2,507		2,507		2,507		23,843		2,682		33,871
	—	Mahal Empreendimentos e Participações S.A.	Brazilian real	Buildings and constructions		18		36		—		—		—		—		—		54		—
	93.458.000-1	Celulosa Arauco y Constitucion S.A.	Brazilian real	Buildings and constructions		466		1,397		1,862		1,862		1,862		1,862		1,397		1,863		8,845
	93.458.000-1	Celulosa Arauco y Constitucion S.A.	Brazilian real	Motor vehicles		84		153		137		84		15		—		—		237		236
	93.458.000-1	Celulosa Arauco y Constitucion S.A.	U.S. dollar	Plants and equipments		999		3,001		4,015		4,029		4,044		4,059		59,509		4,000		75,656
	93.458.000-1	Celulosa Arauco y Constitucion S.A.	Chilean pesos	Motor vehicles		2,031		1,167		—		—		—		—		—		3,198
	—	Arauco North America, Inc.	U.S. dollar	Buildings and constructions		298		740		1,054		1,168		1,216		203		381		1,038		4,022
	—	Arauco North America, Inc.	U.S. dollar	Motor vehicles		243		661		820		432		87		13		—		904		1,352
	—	Arauco Canada Limited	Canadian dollar	Motor vehicles		29		33		46		50		49		—		—		62		145
	—	Celulosa y Energía Punta Pereira S.A.	U.S. dollar	Plants and equipments		240		719		720		641		641		641		7,173		959		9,816
	—	Eufores S.A.	U.S. dollar	Lands		1,064		3,061		6,895		6,382		5,931		5,434		38,374		4,125		63,016
	—	Eufores S.A.	U.S. dollar	Plants and equipments		306		917		1,222		1,222		1,222		917		—		1,223		4,583
	—	Eufores S.A.	U.S. dollar	Buildings and constructions		29		88		20		—		—		—		—		117		20
	96.510.970-6	Maderas Arauco S.A.	Chilean pesos	Motor vehicles		1,516		2,221		—		—		—		—		—		3,737		—
	96.510.970-6	Maderas Arauco S.A.	U.F.	Motor vehicles		23		33		22		7		1		—		—		56		30
	—	Arauco Europe Cooperatief U.A.	Euros	Motor vehicles		7		16		19		7		—		—		—		23		26
	—	Arauco Europe Cooperatief U.A.	Euros	Buildings and constructions		18		55		73		—		—		—		—		73		73
	—	Araucomex S.A. de C.V.	Mexican pesos	Buildings and constructions		394		1,230		1,312		—		—		—		—		1,624		1,312
	—	Araucomex S.A. de C.V.	U.S. dollar	Buildings and constructions		29		39		—		—		—		—		—		68		—
	—	Arauco Industria de México, S.A. de C.V.	Mexican pesos	Motor vehicles		—		57		93		48		35		—		—		57		176
	—	Arauco Industria de México, S.A. de C.V.	U.S. dollar	Plants and equipments		26		—		—		—		—		—		—		26		—
	—	Arauco Industria de México, S.A. de C.V.	Mexican pesos	Buildings and constructions		10		—		—		—		—		—		—		10		—
	—	Arauco Industria de México, S.A. de C.V.	Mexican pesos	Lands		—		4		5		—		—		—		—		4		5
	—	Arauco Industria de México, S.A. de C.V.	Mexican pesos	IT equipment		—		5		7		4		—		—		—		5		11
	—	Araucomex Servicios S.A. de C.V.	Mexican pesos	Motor vehicles		6		12		28		18		3		—		—		18		49
	79.990.550-7	Investigaciones Forestales Bioforest S.A.	U.F.	Motor vehicles		6		11		2		—		—		—		—		17		2
				Total		12,242		34,324		36,223		33,180		30,577		25,041		223,543		46,566		348,564

As part of the policy of Arauco, it considers compliance with all accounts payable, whether with related (see Note 13) or third parties, within a period not exceeding 30 days.

105

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

December 31, 2022					Maturity														Total			Effective rate			Nominal rate
					Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5			Non
					months		months		Years		years		years		Years		years		Current	current
Tax ID		Name	Currency	Bank borrowings	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$	ThU.S.$
	93.458.000-1	Celulosa Arauco y Constitución S.A.	Euros	BNP paribas / ECA		—		71,000		66,743		66,040		65,380		64,711		127,424	71,000		390,298		1.10	%	1.06%
	93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco de Chile		60,259		—		—		—		—		—		—	60,259		—		5.17	%	Fixed 5.17%
	—	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco Interamericano de Desarrollo A		1,138		1,074		—		—		—		—		—	2,212		—		5.89	%	2.05% + libor 6m
	—	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco BBVA		—		5,122		—		—		—		—		—	5,122		—		4.95	%	Fixed 4.95%
	—	Celulosa y Energia Punta Pereira S.A.	U.S. dollar	Banco Interamericano de Desarrollo A		4,512		4,300		—		—		—		—		—	8,812		—		5.89	%	2.05% + libor 6m
	—	Celulosa y Energia Punta Pereira S.A.	U.S. dollar	Finnish Export Credit		24,459		—		—		—		—		—		—	24,459		—		3.20	%	3.20%
	—	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		—		27,688		—		—		—		—		—	27,688		—		1.40	%	Fixed 1.4%
	—	Stora Enso Uruguay S.A.	U.S. dollar	Banco República Oriental del Uruguay		—		2,517		—		—		—		—		—	2,517		—		1.40	%	Fixed 1.4%
	—	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		—		7,551		—		—		—		—		—	7,551		—		1.40	%	Fixed 1.4%
	—	Eufores S.A.	U.S. dollar	Banco Itaú		—		15,382		—		—		—		—		—	15,382		—		5.17	%	Fixed 5.165%
	—	Eufores S.A.	U.S. dollar	Santander		—		21,382		—		—		—		—		—	21,382		—		5.12	%	Fixed 5.12%
	—	Arauco Forest Brasil S.A.	Brazilian real	Banco Safra S.A.		2,826		2,830		5,586		17,983		16,081		14,194		—	5,656		53,844		15.30	%	CDI + 1.65%
	—	Mahal Empreendimentos e Participações S.A.	Brazilian real	Banco Safra S.A.		—		4,209		13,463		12,029		10,628		—		—	4,209		36,120		15.20	%	CDI + 1.55%
	—	Arauco North America, Inc.	U.S. dollar	Banco Itau Corpbanca – NY Branch		—		45,760		217,247		—		—		—		—	45,760		217,247		4.23	%	1.65% + libor 6m
				Total		93,194		208,815		303,039		96,052		92,089		78,905		127,424	302,009		697,509

December 31, 2022				Maturity														Total				Effective rate			Nominal rate
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		years		years		years		years		years		Current		current
Tax ID	Name	Currency	Bonds	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		—		23,934		23,149		22,365		21,581		20,797		39,243		23,934		127,135		4.25	%	4.25%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		—		9,573		9,260		8,946		8,633		8,319		15,697		9,573		50,855		4.24	%	4.25%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-P		—		25,840		25,102		24,364		23,625		22,887		103,359		25,840		199,337		3.95	%	4.00%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-R		—		7,317		7,317		7,317		7,317		7,317		259,931		7,317		289,199		3.56	%	3.60%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-S		—		4,892		4,892		4,892		209,947		—		—		4,892		219,731		2.43	%	2.40%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-W		—		2,570		2,570		2,570		2,570		2,570		125,603		2,570		135,883		2.11	%	2.10%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-X		—		6,050		6,050		6,050		6,050		6,050		322,353		6,050		346,553		2.68	%	2.70%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2024		11,250		11,250		522,500		—		—		—		—		22,500		522,500		4.51	%	4.50%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2027		—		19,375		19,375		19,375		19,375		509,688		—		19,375		567,813		3.89	%	3.88%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2047		—		22,000		22,000		22,000		22,000		22,000		840,000		22,000		928,000		5.50	%	5.50%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2029		—		21,250		21,250		21,250		21,250		21,250		531,875		21,250		616,875		4.26	%	4.25%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2049		—		27,500		27,500		27,500		27,500		27,500		1,091,250		27,500		1,201,250		5.50	%	5.50%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2030		10,500		10,500		21,000		21,000		21,000		21,000		552,500		21,000		636,500		4.20	%	4.20%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2050		12,875		12,875		25,750		25,750		25,750		25,750		1,079,375		25,750		1,182,375		5.16	%	5.15%
			Total		34,625		204,926		737,715		213,379		416,598		695,128		4,961,186		239,551		7,024,006

106

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

December 31, 2022							Maturity														Total
							Up to 3 months		3 to 12 months		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years		Current		Non current
Tax ID		Name		Currency		Underlying asset class	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
	85.805.200-9		Forestal Arauco S.A.		U.F.	Motor vehicles		421		639		571		433		268		4		—		1,060		1,276
	85.805.200-9		Forestal Arauco S.A.		U.F.	Lands		282		—		282		282		282		282		4,654		282		5,782
	85.805.200-9		Forestal Arauco S.A.		U.S. dollar	Lands		60		180		240		240		240		240		240		240		1,200
	85.805.200-9		Forestal Arauco S.A.		U.F.	Plants and equipments		242		—		—		—		—		—		—		242		—
	85.805.200-9		Forestal Arauco S.A.		U.F.	Other property, plant and equipment		96		289		268		209		640		—		—		385		1,117
	85.805.200-9		Forestal Arauco S.A.		Chilean pesos	Other property, plant and equipment		97		169		120		120		354		—		—		266		594
	—		Arauco Argentina S.A.		U.S. dollar	Buildings and constructions		116		345		460		38		—		—		—		461		498
	—		Arauco Argentina S.A.		U.S. dollar	IT equipment		6		10		—		—		—		—		—		16		—
	—		Arauco Argentina S.A.		U.S. dollar	Plants and equipments		251		752		668		—		—		—		—		1,003		668
	—		Arauco Argentina S.A.		U.S. dollar	Motor vehicles		429		1,161		750		—		—		—		—		1,590		750
	—		Arauco Florestal Novo Oeste		Brazilian real	Motor vehicles		5		3		—		—		—		—		—		8		—
	—		Arauco Florestal Novo Oeste		Brazilian real	Buildings and constructions		1		3		—		—		—		—		—		4		—
	—		Arauco Industria de Paineis S.A.		Brazilian real	Fixed facilities and accessories		9		16		—		—		—		—		—		25		—
	—		Arauco Industria de Paineis S.A.		Brazilian real	IT equipment		5		12		16		11		—		—		—		17		27
	—		Arauco Industria de Paineis S.A.		Brazilian real	Motor vehicles		10		30		9		—		—		—		—		40		9
	—		Arauco Forest Brasil S.A.		Brazilian real	IT equipment		1		—		—		—		—		—		—		1		—
	—		Arauco Forest Brasil S.A.		Brazilian real	Lands		1,569		3,285		4,885		4,885		4,506		3,636		—		4,854		17,912
	—		Arauco Forest Brasil S.A.		Brazilian real	Motor vehicles		147		405		131		—		—		—		—		552		131
	—		Arauco Florestal Arapoti S.A.		Brazilian real	Motor vehicles		92		89		24		—		—		—		—		181		24
	—		Arauco do Brasil S.A.		Brazilian real	Buildings and constructions		52		157		52		—		—		—		—		209		52
	—		Arauco do Brasil S.A.		Brazilian real	IT equipment		21		53		14		—		—		—		—		74		14
	—		Arauco do Brasil S.A.		Brazilian real	Motor vehicles		18		20		2		—		—		—		—		38		2
	—		Arauco Celulose do Brasil S.A.		Brazilian real	Lands		381		4,030		4,058		4,058		4,058		4,058		45,148		4,411		61,380
	—		Mahal Empreendimentos e Participações S.A.		Brazilian real	Motor vehicles		203		552		328		164		—		—		—		755		492
	—		Mahal Empreendimentos e Participações S.A.		Brazilian real	Lands		—		2,381		2,381		2,381		2,381		2,381		23,808		2,381		33,332
	—		Mahal Empreendimentos e Participações S.A.		Brazilian real	Buildings and constructions		18		53		—		—		—		—		—		71		—
	93.458.000-1		Celulosa Arauco y Constitucion S.A.		U.F.	Buildings and constructions		424		1,273		1,697		1,697		1,697		1,697		1,698		1,697		8,486
	93.458.000-1		Celulosa Arauco y Constitucion S.A.		U.F.	Motor vehicles		139		174		142		88		27		—		—		313		257
	93.458.000-1		Celulosa Arauco y Constitucion S.A.		Chilean pesos	Buildings and constructions		15		—		—		—		—		—		—		15		—
	93.458.000-1		Celulosa Arauco y Constitucion S.A.		U.S. dollar	Plants and equipments		999		2,998		4,011		4,026		4,040		4,055		60,526		3,997		76,658
	93.458.000-1		Celulosa Arauco y Constitucion S.A.		Chilean pesos	Motor vehicles		2,866		2,953		—		—		—		—		—		5,819		—
	—		Arauco North America, Inc.		U.S. dollar	Buildings and constructions		336		852		1,020		1,131		1,162		499		429		1,188		4,241
	—		Arauco North America, Inc.		U.S. dollar	Motor vehicles		173		540		593		244		52		4		—		713		893
	—		Arauco Canada Limited		Canadian dollar	Motor vehicles		4		23		—		—		—		—		—		27		—
	—		Celulosa y Energía Punta Pereira S.A.		U.S. dollar	Plants and equipments		239		719		800		641		641		641		7,332		958		10,055
	—		Eufores S.A.		U.S. dollar	Lands		975		2,926		6,808		6,306		5,861		5,373		38,052		3,901		62,400
			Eufores S.A.		U.S. dollar	Plants and equipments		306		917		1,222		1,222		1,222		1,222		—		1,223		4,888
	—		Eufores S.A.		U.S. dollar	Buildings and constructions		70		88		49		—		—		—		—		158		49
	96.510.970-6		Maderas Arauco S.A.		Chilean pesos	Motor vehicles		1,400		3,451		—		—		—		—		—		4,851		—
	96.510.970-6		Maderas Arauco S.A.		U.F.	Motor vehicles		63		42		28		6		3		—		—		105		37
	—		Arauco Europe Cooperatief U.A.		Euros	Motor vehicles		7		18		19		12		2		—		—		25		33
	—		Arauco Europe Cooperatief U.A.		Euros	Buildings and constructions		18		54		72		18		—		—		—		72		90
	—		Araucomex S.A. de C.V.		Mexican pesos	Buildings and constructions		456		1,126		1,620		—		—		—		—		1,582		1,620
	—		Araucomex S.A. de C.V.		U.S. dollar	Buildings and constructions		29		68		—		—		—		—		—		97		—
	—		Arauco Industria de México, S.A. de C.V.		Mexican pesos	Motor vehicles		17		53		76		26		11		—		—		70		113
	—		Arauco Industria de México, S.A. de C.V.		U.S. dollar	Plants and equipments		79		26		—		—		—		—		—		105		—
	—		Arauco Industria de México, S.A. de C.V.		Mexican pesos	Buildings and constructions		13		9		—		—		—		—		—		22		—
	—		Arauco Industria de México, S.A. de C.V.		Mexican pesos	Lands		1		3		5		—		—		—		—		4		5
	—		Arauco Industria de México, S.A. de C.V.		Mexican pesos	IT equipment		1		5		7		4		—		—		—		6		11
	—		Araucomex Servicios S.A. de C.V.		Mexican pesos	Motor vehicles		6		17		26		17		3		—		—		23		46
	96.637.330-K		Servicios Logisticos Arauco S.A.		U.F.	Motor vehicles		16		—		—		—		—		—		—		16		—
	79.990.550-7		Investigaciones Forestales Bioforest S.A.		U.F.	Motor vehicles		9		12		5		—		—		—		—		21		5
						Total		13,193		32,981		33,459		28,259		27,450		24,092		181,887		46,174		295,147

As part of the policy of Arauco, it considers compliance with all accounts payable, whether with related (see Note 13) or third parties, within a period not exceeding 30 days.

107

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Regarding the Libor rate and its discontinuity, at the end of March 2023 Arauco maintains 4.38% of its total debt at said rate and it is not estimated that the effect of its elimination will be material. Additionally, Arauco maintains interest rate derivatives for 99.58% of its Libor rate based debt. The credits set at the Libor rate that Arauco maintains at the closing date of these financial statements generally include provisions that allow the rate to be modified in the event of situations such as that given by the discontinuation of Libor rates, In the case of credits that do not have mechanisms of this type, Arauco is currently finalizing negotiations in order to agree on a replacement rate.

As of March 31, 2023, it is estimated that this change will not have a significant impact on Arauco’s results.

Guarantees

As of the date of these interim consolidated financial statements, Arauco has financial assets of approximately MU.S.$ 20 that have been pledged to third parties (beneficiaries), as direct guarantee. If Arauco does not fulfill its obligations, the guarantors could execute the guarantees.

As of March 31, 2023, the total assets pledged as an indirect guarantee were MU.S.$ 435. In contrast to direct guarantees, indirect guarantees are given to secure obligations assumed by a third party.

On September 29, 2011, Arauco entered into a Security Agreement under which it granted a non-joint guarantee limited to 50% of the obligations of the Uruguayan companies (joint ventures) Celulosa y Energía Punta Pereira S.A. and Zona Franca Punta Pereira S.A., under the IDB Facility Agreement in the amount of up to MU.S.$ 454 and the Finnvera Guaranteed Facility Agreement in the amount of up to MU.S.$ 900. Both borrowing agreements were signed with the International Development Bank. Such guarantee is included in the table below, under indirect guarantees. As of March 31, 2023 Finnvera Facility Agreement payment ended, finishing the related indirect guarantee.

Direct and indirect guarantees granted by Arauco:

DIRECT
Subsidiary	Guarantee	Assets pledged	Currency	ThU.S.$	Guarantor
Celulosa Arauco y Constitución S.A.	Guarantee letter	—	Chilean pesos	817	Directorate General of Maritime Territory and Merchant Marine
Celulosa Arauco y Constitución S.A.	Guarantee letter	—	Chilean pesos	373	Railways
Celulosa Arauco y Constitución S.A.	Guarantee letter	—	Chilean pesos	2,453	Ministry of Public Works (MOP)
Celulosa Arauco y Constitución S.A.	Guarantee letter	—	Chilean pesos	582	Illustrious municipality of Arauco
Celulosa Arauco y Constitución S.A.	Guarantee letter	—	Chilean pesos	15,657	Sociedad Concesionaria Autopista Costa Arauco S.A.
		Total		19,882

INDIRECT
Subsidiary	Guarantee	Assets pledged	Currency	ThU.S.$	Guarantor
Celulosa Arauco y Constitución S.A.	Suretyship not supportive and cumulative of Joint Ventures (Uruguay)	—	U.S. dollar	5,263	Interamerican Development Bank
Celulosa Arauco y Constitución S.A.	Full Guarantee, of Arauco North America, Inc.	—	U.S. dollar	240,000	Bank Itaú Corpbanca – NY Branch
Arauco do Brasil S.A.	Endorsement of Arauco Forest Brasil S.A.	—	Brazilian real	40,325	Bank Safra S.A.
Arauco do Brasil S.A.	Endorsement of Mahal Empreendimentos e Participações S.A.	—	Brazilian real	31,109	Bank Safra S.A.
Arauco do Brasil S.A.	Endorsement of Arauco Celulose do Brasil S.A.	—	Brazilian real	69,127	Itaú Unibanco S.A.
Arauco do Brasil S.A.	Endorsement of Arauco Celulose do Brasil S.A.	—	Brazilian real	49,209	Bank BTG Pactual S.A.
		Total		435,034

108

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.10.3 Type of Risk: Market Risk – Exchange Rate

Description

Market risk arises from the probability of being affected by losses from fluctuations in currencies exchange rates in which assets and liabilities are denominated, in a functional currency other than the functional currency of Arauco.

Explanation of Currency Risk Exposure and How This Risk Arises

Arauco is exposed to the foreign currency risk from currency fluctuations arising from sales, purchases and obligations undertaken in foreign currencies, such as the Chilean peso, Euro, Brazilian Real or other foreign currencies. In the case of significant exchange rate variations, the Chilean peso is the currency that represents the main currency risk. See Note 11 for details assets and liabilities classified by currency.

Explanation of Risk Management Objectives, Policies and Processes, and Measurement Methods

Arauco performs sensitivity analyses to measure the effect of this variable on equity and net result.

Sensitivity analysis considers a variation of +/- 10% of the exchange rate over the Chilean peso. This fluctuation range is considered possible given current market conditions as of the date of these financial statements. With all other variables at a constant rate, a U.S. dollar exchange rate variation of +/- 10% in relation to the Chilean peso would mean a change in the net income year after tax +/- 12.40% (equivalent to ThU.S.$ -/+ 6,734), and +/- 0.05% of equity (equivalent to ThU.S.$ -/+ 4,040).

Additionally, a sensitivity analysis is carried out assuming a variation of +/- 10% in the closing exchange rate on the Brazilian Real, which is considered a possible range of fluctuation given the market conditions as of the date of these financial statements. With all the other variables constant, a variation of +/- 10% in the exchange rate of the dollar on the Brazilian Real would mean a variation on the net income after tax +/- 11.16% (equivalent to ThU.S.$-/+$ 6,060) and a change on the equity of +/- 1.42% (equivalent to ThU.S. -/+$ 115,731).

109

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.10.4 Type of Risk: Market Risk – Interest rate risk

Description

Interest rate risk refers to the sensitivity of the value of financial assets and liabilities in terms of interest rate fluctuations.

Explanation of Interest Rate Risk Exposure and How This Risk Arises

Arauco is exposed to risks due to interest rate fluctuations for bonds issued, bank borrowings and financial instruments that bear interest at a variable rate.

Explanation of Risk Management Objectives, Policies and Processes, and Measurement Methods

Arauco completes its risk analysis by reviewing its exposure to changes in interest rates. As of March 31, 2023, 3.1% our financial debt accrues interest at variable rates. A change of +/- 10% in the interest rate is considered a possible range of fluctuation. Such market conditions would affect the income after tax at rate of +/- 1.42% (equivalent to ThU.S.$-/+ 770) and +/- 0.006% (equivalent to ThU.S.$-/+ 462) on equity.

	March 2023 ThU.S.$		Total
Fixed rate		6,148,146		96.9	%
Bonds issued		4,640,704
Bank borrowings and others (*)		1,214,715
Lease liabilities		292,727
Variable rate		195,530		3.1	%
Bonds issued		—
Bank borrowings		195,530
Total		6,343,676		100.0	%

	December 2022 ThU.S.$		Total
Fixed rate		5,637,820		98.6	%
Bonds issued		4,513,459
Bank borrowings and others (*)		860,137
Lease liabilities		264,224
Variable rate		80,540		1.4	%
Bonds issued		—
Bank borrowings		80,540
Total		5,718,360		100.0	%

(*) Includes variable rate bank borrowings changed by fixed rate swaps.

110

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

23.10.5 Type of Risk: Market Risk – Price of Pulp Risks

Description

Pulp prices are determined by world and regional market conditions. Prices fluctuate based on demand, production capacity, commercial strategies adopted by large-scale forestry companies, pulp and paper producers and by the availability of substitutes.    

Explanation of Price Risk Exposure and How This Risk Arises

Pulp prices are reflected in revenue from sales and directly affect the net income for the period.

As of March 31, 2023, revenue due to pulp sales accounted for 45.0% of total sales. Pulp prices are fixed on a monthly basis in accordance with the market. Forward contracts or other financial instruments are not used for pulp sales.

Explanation of Risk Management Objectives, Policies and Processes, and Measurement Methods

This risk is approached in different ways. Arauco has a team of specialists who perform periodic market and competition analyses, providing tools to analyze and evaluate trends and adjust forecasts. Similarly, Arauco performs price financial sensitivity analysis in order to take the necessary safeguards to confront different scenarios in the best possible manner.    

Sensitivity analysis considers a variation of +/- 10% in the average pulp price, a possible fluctuation range given current market conditions at the date of the closing balance. With all other variables constant, a variation of +/- 10% in the average pulp price would mean a variation of +/- 77.9% (equivalent to ThU.S.$-/+ 42,319) on the income for the year after tax and +/- 0.3% (equivalent to ThU.S.$ -/+ 25,392) on equity.

111

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 24. REPORTABLE SEGMENTS

The main products that generate revenue for each reportable segment are described as follows:

Pulp segment

The main products sold by this reportable segment are long fiber bleached pulp (BSKP), short fiber bleached pulp (BHKP), long fiber raw pulp (UKP), pulp fluff and dissolving pulp (DP). Additionally, it manages a forest plantations in order to supply its production plants and, at the same time, to sell to the wood products segment or to third parties what it does not use (pruning, sawing, poles and chips). Finally, depending on the needs, it buys logs and chips from third parties which are consumed or sold to the wood products segment.

The Pulp reportable segment uses wood exclusively from pine and eucalyptus plantations for the production of different classes of wood cellulose or pulp. Bleached pulp is mainly used as raw material for producing printing and writing paper, as well as toilet paper and high-quality wrapping paper. Unbleached pulp is used to produce packing paper, filters, fiber cement products, dielectric paper and others. Fluff pulp is mainly used in the production of diapers and female hygiene products. On the other hand, dissolving pulp is used as raw material for the manufacture of different fabrics.

Arauco has seven plants, five in Chile, one in Argentina and one in Uruguay (50% property of Arauco) and they have a total production capacity of approximately 5.2 million tons per year. Pulp is sold in more than 42 countries, mainly in Asia and Europe.

112

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Wood products segment

The main products sold by this segment correspond to plywood, MDF (Medium Density Fiberboard), PB (chipboard), sawn wood of different dimensions and remanufactured products such as moldings, pre-cut pieces, finger joints, among others.

The Panels area produces a wide range of panel products and several kinds of moldings aimed at the furniture, decoration and construction industries. It consists of 20 industrial plants: 4 in Chile, 2 in Argentina, 4 in Brazil, 2 in Mexico, and 8 plants around USA and Canada. The Company has a total annual production capacity of 7.3 million cubic meters of PBO, MDF, plywood and moldings.

Through the joint venture Sonae Arauco, Arauco produces and sells wood panels, of the type of MDF, PB and OSB, and sawn timber, through the operation of 2 panel plants and one sawmill in Spain; 2 panel plants and one resin plant in Portugal; 3 panel plants in Germany and 2 panel plants in South Africa. In total, Sonae Arauco’s production capacity is approximately 1.2 million m3 of MDF, 2.4 million m3 of PB, 460,000 m3 of OSB and 70,000 m3 of sawn timber.

Including Sonae Arauco at 50%, Arauco in its mills totalize a capacity of 4.2 million m3 of MDF, 4.2 million m3 of PB and 230,000 m3 of OSB, 710,000 m3 of Plywood and 3,100,000 m3 of sawn timber.

The Sawn Timber area produces a wide range of wood and remanufactured products with different kinds of uses and appearances, which include a wide variety of uses in the furniture, packing, construction and refurbishing industries.

With 8 sawmills in operation (7 in Chile and 1 in Argentina), the Company has a production capacity of 3.0 million m3 of sawn wood.

Furthermore, the Company has 5 remanufacturing plants, 4 in Chile and 1 in Argentina. These plants reprocess sawn wood and produce high quality remanufactured products, such as finger joint and solid moldings as well as precut pieces.

Arauco has no customers representing 10% or more of its revenues.

113

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Below, please find summarized information concerning the assets, liabilities and profits and losses at the end of each period, by segments. The profit (loss) of each segment informed takes into consideration that taxes and income and financial costs have not been allocated to the various segments, and are shown as part of the Corporate’s segment:

Period ended March 31, 2023	Pulp ThU.S.$	Wood products ThU.S.$	Others ThU.S.$	Corporate ThU.S.$	Subtotal ThU.S.$	Elimination ThU.S.$	Total ThU.S.$
Revenues from sales of goods	614,851	788,890	—	—	1,403,741		1,403,741
Revenues from rendering of services	33,557	1,989	184	—	35,730		35,730
Revenues from ordinary activities	648,408	790,879	184	—	1,439,471		1,439,471
Revenues from transactions with reportable segments	97,430	8,212	13,651	—	119,293	(119,293)	—
Finance income	—	—	—	22,777	22,777		22,777
Finance costs	—	—	—	(80,146)	(80,146)		(80,146)
Net finance costs	—	—	—	(57,369)	(57,369)		(57,369)
Depreciation and amortizations	98,226	47,193	425	2,064	147,908		147,908
Other income	60,029	14,581	—	986	75,596		75,596
Other expenses	187,356	19,172	—	2,451	268,979		268,979
Share of profit (loss) of associates and joint ventures accounted for using equity method
Associates	607	—	—	(425)	182		182
Joint ventures	—	7,471	—	210	7,681		7,681
Income tax expense	—	—	—	57,592	57,592		57,592
Profit (loss) of each reportable segment	(98,897)	96,241	1,990	(53,636)	(54,302)		(54,302)
Geographical information on revenues
Revenue – Chilean entities	426,522	241,737	184	—	668,443		668,443
Revenue – Foreign entities	221,886	549,142	—	—	771,028		771,028
Total revenues from ordinary activities	648,408	790,879	184	—	1,439,471		1,439,471

Period ended March 31, 2023	Pulp ThU.S.$	Wood products ThU.S.$	Others ThU.S.$	Corporate ThU.S.$	Subtotal ThU.S.$	Elimination ThU.S.$	Total ThU.S.$
Amounts of additions to non-current assets
Acquisition of property, plant and equipment and biological assets	305,524	24,245	694	4,120	334,583		334,583
Acquisition and contribution of investments in associates and joint venture	—	—	—	—	—	—	—

Period ended March 31, 2023	Pulp ThU.S.$	Wood products ThU.S.$	Others ThU.S.$	Corporate ThU.S.$	Subtotal ThU.S.$	Elimination ThU.S.$	Total ThU.S.$
Segment assets	13,216,832	2,954,145	18,405	1,494,386	17,683,768	(121,520)	17,562,248
Segment assets (excluding deferred tax assets)	13,216,832	2,954,145	18,405	1,482,959	17,672,341	(121,520)	17,550,821
Deferred tax assets				11,427	11,427		11,427
Investments accounted through equity method
Associates	40,312	—	—	63,950	104,262		104,262
Joint Ventures	—	216,189	—	64,757	280,946		280,946
Segment liabilities	1,147,355	421,370	14,237	7,896,489	9,479,451		9,479,451
Segment liabilities (excluding deferred tax liabilities)	1,147,355	421,370	14,237	6,211,748	7,794,710		7,794,710
Deferred tax liabilities				1,684,741	1,684,741		1,684,741
Geographical information on non-current assets
Chile	8,539,439	483,192	16,717	460,087	9,499,435	(16,355)	9,483,080
Foreign countries	2,808,894	1,199,302	—	45,149	4,053,345		4,053,345
Total non-current assets	11,348,333	1,682,494	16,717	505,236	13,552,780	(16,355)	13,536,425

114

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

Period ended March 31, 2022	Pulp ThU.S.$	Wood products ThU.S.$	Others ThU.S.$			Corporate ThU.S.$	Subtotal ThU.S.$	Elimination ThU.S.$	Total ThU.S.$
Revenues from sales of goods	711,608	1,019,471		—		—	1,731,079		1,731,079
Revenues from rendering of services	30,240	1		304		—	30,545		30,545
Revenues from ordinary activities	741,848	1,019,472		304		—	1,761,624		1,761,624
Revenues from transactions with reportable segments	125,279	5,791		12,346		—	143,416	(143,416)	—
Finance income	—	—		—		13,331	13,331		13,331
Finance costs	—	—		—		(47,019)	(47,019)		(47,019)
Net finance costs	—	—		—		(33,688)	(33,688)		(33,688)
Depreciation and amortizations	77,363	52,368		416		2,532	132,679		132,679
Other income	77,239	4,192		—		1,332	82,763		82,763
Other expenses	19,866	5,418		4		2,560	27,848		27,848
Share of profit (loss) of associates and joint ventures accounted for using equity method
Associates	913	—		—		1,519	2,432		2,432
Joint ventures	—	16,187		—		1,093	17,280		17,280
Income tax expense	—	—		—		(76,630)	(76,630)		(76,630)
Profit (loss) of each reportable segment	212,680	276,579		(1,731	)	(158,468)	329,060		329,060
Geographical information on revenues
Revenue – Chilean entities	510,243	484,840		304		—	995,387		995,387
Revenue – Foreign entities	231,605	534,632		—		—	766,237		766,237
Total revenues from ordinary activities	741,848	1,019,472		304		—	1,761,624		1,761,624

Period ended March 31, 2022	Pulp ThU.S.$	Wood products ThU.S.$	Others ThU.S.$		Corporate ThU.S.$	Subtotal ThU.S.$	Elimination ThU.S.$	Total ThU.S.$
Amounts of additions to non-current assets
Acquisition of property, plant and equipment and biological assets	404,563	18,960		222	1,336	425,081		425,081
Acquisition and contribution of investments in associates and joint venture	—	—		—	—	—	—	—

Period ended December 31, 2022	Pulp ThU.S.$		Wood products ThU.S.$		Others ThU.S.$		Corporate ThU.S.$		Subtotal ThU.S.$		Elimination ThU.S.$			Total ThU.S.$
Segment assets		13,094,867		2,959,042		18,291		1,256,321		17,328,521		(148,413	)		17,180,108
Segment assets (excluding deferred tax assets)		13,094,867		2,959,042		18,291		1,247,310		17,319,510		(148,413	)		17,171,097
Deferred tax assets								9,011		9,011					9,011
Investments accounted through equity method
Associates		36,489		—		—		64,332		100,821					100,821
Joint Ventures		—		203,443		—		61,407		264,850					264,850
Segment liabilities		1,049,313		438,864		22,237		7,409,710		8,920,124					8,920,124
Segment liabilities (excluding deferred tax liabilities)		1,049,313		438,864		22,237		5,623,795		7,134,209					7,134,209
Deferred tax liabilities								1,785,915		1,785,915					1,785,915
Geographical information on non-current assets
Chile		8,540,801		491,283		17,008		398,820		9,447,912		(16,294	)		9,431,618
Foreign countries		2,742,416		1,190,257		—		40,896		3,973,569					3,973,569
Total non-current assets		11,283,217		1,681,540		17,008		439,716		13,421,481		(16,294	)		13,405,187

115

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The following table shows information related to cash flows by segments which is presented as a complementary information as required by our regulatory entities:

Period ended March 31, 2023	Pulp ThU.S.$			Wood products ThU.S.$			Others ThU.S.$			Corporate ThU.S.$			Subtotal ThU.S.$			Elimination ThU.S.$		Total ThU.S.$
Segment cash flows
Cash flows from (used in) operating activities		23,972			131,480			266			(51,968	)		103,750			—		103,750
Cash flows (used in) investing activities		(256,930	)		(68,151	)		(1,341	)		(4,352	)		(330,774	)		—		(330,774	)
Cash flows from (used in) financing activities		414,616			23,801			(160	)		(490	)		437,767			—		437,767
Net increase (decrease) in cash and cash equivalents		181,658			87,130			(1,235	)		(56,810	)		210,743			—		210,743

Period ended March 31, 2022	Pulp ThU.S.$			Wood products ThU.S.$			Others ThU.S.$			Corporate ThU.S.$			Subtotal ThU.S.$			Elimination ThU.S.$		Total ThU.S.$
Segment cash flows
Cash flows from (used in) operating activities		372,794			161,338			3,434			(71,867	)		465,699			—		465,699
Cash flows (used in) investing activities		(375,999	)		(24,581	)		(5,899	)		12,761			(393,718	)		—		(393,718	)
Cash flows from (used in) financing activities		(30,143	)		(3,572	)		(595	)		(1,109	)		(35,419	)		—		(35,419	)
Net increase (decrease) in cash and cash equivalents		(33,348	)		133,185			(3,060	)		(60,215	)		36,562			—		36,562

Information required by geographic area:

	Geographical area
2023	Local country		Foreign country
	Chile		Argentina		Brazil		USA/Canada		Uruguay		Mexico		Total
Disclosure of geographical areas	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Revenues from sale of goods		644,661		139,002		133,146		322,782		110,384		53,766		1,403,741
Revenues from rendering of services		23,782		—		1,987		—		9,960		1		35,730
Revenues as of March 31, 2023		668,443		139,002		135,133		322,782		120,344		53,767		1,439,471
Non-current Assets at 03-31-2023 other than deferred tax		9,477,876		547,945		990,399		713,337		1,658,881		136,560		13,524,998

	Geographical area
2022	Local country		Foreign country
	Chile		Argentina		Brazil		USA/Canada		Uruguay		Mexico		Total
Disclosure of geographical areas	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Revenues from sale of goods		971,028		141,472		157,367		275,845		128,185		57,182		1,731,079
Revenues from rendering of services		24,359		—		—		—		6,185		1		30,545
Revenues as of December 31, 2022		995,387		141,472		157,367		275,845		134,370		57,138		1,761,624
Non-current Assets at 12-31-2022 other than deferred tax		9,426,583		548,528		906,174		721,824		1,664,974		128,093		13,396,176

116

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 25. OTHER NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES

	03-31-2023		12-31-2022
Current non-financial assets	ThU.S.$		ThU.S.$
Roads to amortize, current		57,243		56,171
Prepayment to amortize (insurance and others)		20,882		17,474
Recoverable taxes (related to purchases)		168,214		126,368
Other current non-financial assets		12,307		6,046
Total		258,646		206,059

	03-31-2023		12-31-2022
Non-current non-financial assets	ThU.S.$		ThU.S.$
Roads to amortize, non-current		89,293		71,094
Guarantee values		4,319		4,400
Recoverable taxes		7,147		6,363
Other non-current non-financial assets		13,709		10,657
Total		114,468		92,514

	03-31-2023		12-31-2022
Current non-financial liabilities	ThU.S.$		ThU.S.$
Provision of minimum dividend (1)		282,277		189,375
ICMS, PIS-COFINS and other tax payables - Brazil		29,017		32,145
Other tax payable		29,769		14,186
Other Current non-financial liabilities		7,953		7,272
Total		349,016		242,978

(1) Correspond mainly to the minimum dividend provision of the parent company (see Note 26).

	03-31-2023		12-31-2022
Non-current non-financial liabilities	ThU.S.$		ThU.S.$
ICMS and other tax payable - Brazil		66,934		66,736
Other non-current non-financial liabilities		3,695		3,136
Total		70,629		69,872

NOTE 26. DISTRIBUTABLE NET PROFIT AND EARNINGS PER SHARE

Distributable net profit

As a general policy, the Board of Directors of Arauco agreed that the net profit to be distributed as dividend is determined based on realized net gains/(losses) of any relevant variations in the value of unrealized assets and liabilities, which are excluded from the calculation of net profit during the period such changes are made.

As a result of the foregoing, for purposes of determining the distributable net profit of the Company, which is the same considered for calculating the minimum dividend required and additional dividend, the following unrealized gains/losses are excluded from the net profit for the year:

1) Unrealized gains/losses relating to the fair value recorded for forestry assets under IAS 41, adding them back to distributable net profit when they are realized through sale or disposed of by other means.

2) Those generated through the acquisition of entities. These results will be added back to net profit when they are realized through sale.

The deferred taxes associated with the amounts described in 1) and 2) above are also excluded.

117

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

As of December 31, 2022 Arauco in the financial statements recognized the balance of minimum dividend provision of the parent company for ThU.S.$ 186,903. In December 2022 Arauco paid a provisional dividend for ThU.S.$ 183,971 decreasing the minimum dividend provision.

In 2023, the amount of ThU.S.$ 92,719 presented in the interim consolidated statement of changes in equity was provisioned, corresponding to an additional and extraordinary dividend of 10% to be paid for the profits of the parent company of 2022.

For the profits of the fiscal year 2022 and for subsequent fiscal years, an amount equivalent to the 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.

The following table details the adjustments made for the determination of distributable net profit as of March 31, 2023 and 2022:

	Distributable net profit
	03-31-2023 ThU.S.$			03-31-2022 ThU.S.$
Net profit attributable to parent company Adjustments:		(54,163	)		329,050
Biological assets
Unrealized gains (losses)		(52,597	)		(53,704	)
Realized gains (losses)		102,585			61,522
Deferred income taxes		(11,629	)		(653	)
Total adjustments		38,359			7,165
Distributable net profit		(15,804	)		336,215
40%		—			134,486

Due to that the distributable net profit as of March 31, 2023 resulted in a loss, no amount related to the 2023 period was provisioned on that date.

Basic and diluted earnings per share

Basic and diluted earnings per share are calculated by dividing the profit or loss attributable to ordinary equity holders of parent by the weighted average number of ordinary shares outstanding. Arauco does not have any shares with potential dilutive effect.

	January - March
	2023 ThU.S.$			2022 ThU.S.$
Profit or loss attributable to ordinary equity holder of parent		(54,163	)		329,050
Weighted average of number of shares		120,474,350			120,474,350
Basic and diluted earnings per share (in U.S.$ per share)		(0.4495812	)		2.7312868

118

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

NOTE 27. SUBSEQUENT EVENTS

1) As of April 25, 2023 Celulosa Arauco y Constitución S.A. has proceeded to place Sustainable Bonds in the local market, bonds that are dematerialized and to bearer, which most relevant conditions are as follows:

1.- A) Series “Y” Bonds, for a total amount of 2,000,000 Unidades de Fomento (“UF”), maturing on April 10, 2032. Interests will accrue as of April 10, 2023 and will be paid semi-annually on April 10 and October 10 of each year, starting on October 10, 2023. Principal will be paid in a single installment payable on April 10, 2032.

The issuance reached a placement rate of 3.35%.

The Series “Y” Bonds will accrue on the unpaid principal, expressed in UF, a coupon interest of 3.10% per annum, compound, due, calculated on the basis of equal semesters of 180 days, equivalent to a semi-annual rate of 1.5382%.

B) Series “Z” Bonds, for a total amount of 5,000,000 UF, maturing on April 10, 2044. Interests will accrue from April 10, 2023 and will be paid semi-annually on April 10 and October 10 of each year, starting on October 10, 2023. Principal will be paid in a single instalment payable on April 10, 2044. The issuance had a placement rate of 3.18%.

The Series “Z” Bonds will accrue on the unpaid principal, expressed in UF, a coupon interest of 3.2% per annum, compound, due, calculated on the basis of equal semesters of 180 days, equivalent to a semi-annual rate of 1.5874%.

2.- The Series “Y” Bonds have been issued against the bond line registered in the Commission’s Securities Registry under No. 936, dated April 15, 2019, while the Series “Z” Bonds have been issued against the bond line registered in the Commission’s Securities Registry under No. 937, also dated April 15, 2019.

Series “Y” and “Z” bonds were approved by the Company’s Board of Directors on April 18, 2023.

3.- These series of bonds have a Chilean risk credit rating of AA/Stable, according to certificates granted by the risk credit rating agencies Fitch Chile and Feller Rate.

4.- The placement agents were Scotia Corredora de Bolsa Chile Limitada and Santander Corredores de Bolsa Limitada, companies with which there is no ownership relationship.

5.- Other relevant conditions of the aforementioned bonds are as follows:

i) Both the Series “Y” and Series “Z” Bonds may be redeemed as from April 10, 2026.

ii) The Bonds will not have any guarantee.

iii) The proceeds from the aforementioned placements will be used 100% for general corporate purposes of the Company and/or its subsidiaries.

The abovementioned bonds to be issued are classified as “sustainable”, since regardless of the use of the proceeds described in the previous paragraph, Arauco will destine an amount equivalent to the proceeds to be obtained of such issuance and placement to finance or refinance, in whole or in part, one or more green and social projects selected for the purposes of the issuance in accordance with the Sustainability Bond Framework adopted by the Company and published on its website.

119

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited interim consolidated financial statements

March 31, 2023

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

The abovementioned green and social projects may include: (i) projects with disbursements made within the 36 months preceding the issue date of the bonds and (ii) projects with disbursements to be made after the referred issuance, and up to the maturity date of the same bonds.

2) The authorization for the issuance and publication of these interim consolidated financial statements for the period ended March 31, 2023 was approved by the Board of Directors of Arauco at the Extraordinary Meeting No. 688 held on May 11, 2023.

Subsequent to March 31, 2023 and as of the date of issuance of these interim consolidated financial statements, there have been no additional events, that could materially affect the presentation of these financial statements.

120

arauco Press Release 1Q 2023 Arapoti, Paraná State, Brasil

1Q 2023 RESULTS Highlights 1Q 2023 For more details on ARAUCO´s financial statements please visit www.cmfchile.cl or www.arauco.com Readers are referred to the documents filed by ARAUCO with the United States Securities and Exchange Commission, specifically the most recent filing on Form 20-F that identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to ARAUCO on the date hereof and ARAUCO does not assume any obligation to update such statements. References herein to “U.S.$” are to United States dollars. Discrepancies in any table between totals and sums of the amounts listed are due to rounding. This report is unaudited. REVENUES US$1,439.5 million NET INCOME-US$54.3 million ADJUSTED EBITDA US$188.0 million NET DEBT TO LTM Adj. EBITDA 3.17x CAPEX US$334.6 million 1

1Q 2023 RESULTS Overview ARAUCO´s net income for the first quarter of 2023 was -US$54.3 million, affected by a one-time charge of US$42.9 million due to forest fires during the first quarter of 2023. This net income loss is US$123.3 million lower compared to the fourth quarter of 2022, mostly due to an impairment provision in Argentina and a re-evaluation of our biological assets in Chile accounted in the fourth quarter of 2022. Our Adjusted EBITDA was 51.5% lower than the fourth quarter of 2022, totaling US$188.0 million. Net Financial Debt increased by US$419.7 million or 8.3% and our Net Debt/LTM EBITDA ended up in 3.17x, an increase when compared to the 2.33x reached during the fourth quarter of 2022. In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY YTD 2023 YTD 2022 YoY YTD Revenue 1,439.5 1,594.0 1,761.6 -9.7% -18.3% 1,439.5 1,761.6 -18.3% Net income (54.3) (177.6) 329.1 -69.4% 116.5% (54.3) 329.1 -116.5% Adjusted EBITDA 188.0 387.6 628.4 -51.5% -70.1% 188.0 628.4 -70.1% Adjusted EBITDA Margin 13.1% 24.3% 35.7% -46.3% -63.4% 13.1% 35.7% -63.4% LTM Adj. EBITDA 1,726.4 2,166.8 2,737.0 -20.3% -36.9% 1,726.4 2,737.0 -36.9% CAPEX 334.6 380.5 424.8 -12.1% -21.2% 334.6 424.8 -21.2% Net Financial Debt 5,470.9 5,051.2 4,686.1 8.3% 16.7% 5,470.9 4,686.1 16.7% Net Financial Debt /LTM Adj. EBITDA 3.17x 2.33x 1.71x 35.9% 85.1% 3.17x 1.71x 85.1% Adjusted EBITDA and EBITDA Margin (in US$ Million) 28.6% 384.7 Q1 2021 35.1% 545.4 Q2 2021 54.1% 922.9 Q3 2021 36.8% 640.4 Q4 2021 36.8% 640.4 Q4 2021 32.0% 597.8 Q2 2022 29.4% 553.0 Q3 2022 24.3% 387.6 Q4 2022 13.1% 188.0 Q1 2023 2

1Q 2023 RESULTS Income Statement Revenues ARAUCO’s revenues reached US$1,439.5 million in the first quarter of 2023, a decrease of 9.7% when compared to the previous quarter. This variation is mostly explained by lower revenues in our pulp division, due to a decrease in average prices of 7.8% and 4.9% in sales volume. Additionally, revenues for our wood products division were 8.9% lower, due to a decrease in sales volume and in average prices of 4.8% and a 4.4% respectively. The following table shows a breakdown of our revenues by business segment: In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Pulp 648.4 725.5 741.8 -10.6% -12.6% Wood Products 790.9 868.3 1,019.5 -8.9% -22.4% Total 1,439.5 1,594.0 1,761.6 -9.7% -18.3% Revenue’s Breakdown by business segment 58% 42% Q1 2022 54% 46% Q4 2022 55% 45% Q1 2023 Pulp and Forestry Wood Products 3

1Q 2023 RESULTS Cost of sales Decreased by 1.7% or US$17.9 million compared to the fourth quarter of 2022. This is mostly explained by decreases in Timber and Forestry labor costs due to lower sales volume. Additionally, there was a decrease in Maintenance costs related to lower costs in some of our mills. This was partially offset by Energy and Fuel and Other raw materials and indirect costs due to an increase in consumption of fuel and raw materials in our Arauco Pulp Line 3 due to the ramp up process. In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Timber 210.2 234.5 147.8 -10.4% 42.2%Forestry labor costs 150.8 159.9 140.2 -5.7% 7.6% Depreciation and amortization 101.1 95.0 110.7 6.4% -8.7% Depreciation for right of use 6.7 9.5 10.5 -29.1% -36.0% Maintenance costs 81.4 90.6 81.7 -10.2% -0.4% Chemical costs 158.5 161.9 178.0 -2.1% -11.0% Sawmill services 26.1 23.6 28.6 10.2% -9.0% Other raw materials and indirect costs 120.3 111.4 128.5 8.0% -6.4% Energy and fuel 62.9 52.2 60.6 20.6% 3.8% Cost of electricity 15.0 13.5 9.7 11.1% 54.4% Wage, salaries and severance indemnities 101.2 99.8 106.7 1.3% -5.2% Cost of Sales 1,034.0 1,051.9 1,003.2 -1.7% 3.1% Administrative expenses Decreased by 10.7% or US$17.9 million, when compared to the previous quarter, mostly due to a decrease in Fees and Other administration expenses services. In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Wages, salaries and severance indemnities 65.8 65.8 62.4 -0.1% 5.4% Marketing, advertising, promotion and publications expenses 3.2 3.6 3.9 -10.4% -17.0% Insurance 10.0 7.0 6.4 44.2% 56.6% Depreciation and amortization 8.3 8.2 8.5 1.2% -2.1% Depreciation for the right of use 1.8 2.0 1.9 -9.8% -6.4% Computer services 7.0 10.4 5.6 -33.3% 24.2% Lease rentals (offices, warehouses and machinery) 1.9 1.0 1.5 78.4% 22.2% Donations, contributions, scholarships 2.0 4.9 2.1 -59.4% -5.0% Fees (legal and technical advisories) 8.3 12.4 8.7 -33.3% -4.5% Property taxes, patents and municipality rights 6.4 5.8 5.9 10.8% 8.6% Other administration expenses 35.3 46.6 33.9 -24.3% 3.9% Administrative Expenses 149.8 167.7 140.8 -10.7% 6.5% 4

1Q 2023 RESULTS Distribution costs Distribution costs decreased by 16.4%, or US$31.5 million mostly due to a decrease of US$27.1 million or 18.2%, in freight costs, mainly explained by lower sales volume and tariffs mostly in our wood products segment. In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Commissions 3.1 2.6 3.7 17.9% -16.3% Insurance 1.9 2.2 1.5 -12.6% 30.2% Other selling costs 5.0 2.2 4.9 123.8% 1.0% Port services 15.0 16.9 15.2 -10.9% -1.3% Freight 121.7 148.8 194.3 -18.2% -37.4% Depreciation for the right of use 0.3 1.0 0.5 -72.5% -48.2% Other shipping and freight costs 13.9 18.7 13.7 -25.7% 0.9% Distribution Costs 160.9 192.4 234.0 -16.4% -31.2% Other income Increased by US$220.1 million mostly due to an increase in Gains from changes in fair value of biological assets mainly caused by a US$211.9 million increase in the valuation of our Chilean forest related to a negative one-time charge effect last quarter. This was partially offset by Gains on sales of assets due to a decrease of US$11.7 million or 81.6%. In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Gain from changes in fair value of biological assets 52.6 (181.0) 53.7 -129.1% -2.0% Net income from insurance compensation 0.3 1.2 0.2 -74.7% 70.5% Leases received 0.5 0.5 0.5 13.7% -0.8% Gains on sales of assets 2.7 14.4 25.8 -81.6% -89.7% Other operating results 19.5 20.5 2.5 -4.8% 665.1% Other Income 75.6 (144.5) 82.8 -152.3% -8.7% 5

1Q 2023 RESULTS Other expenses Increased by 0.3% or US$0.6 million when compared to the fourth quarter of 2022. This is mostly explained by an increase in Operating expenses related to plant stoppages, mostly due to operating expenses related to the ramp up process of our Arauco (line 3) and operational shutdowns of our Constitución mill (all quarter without production due to a problem in the lime kiln) and Nueva Aldea mill (affected two weeks due to forest fires). Also, in relation to loss of forests, we accounted a US$42.9 million net loss due to forest fires during the first quarter of 2023. This was partially offset by a decrease in Impairment provision property, plant and equipment and others mostly due to an impairment provision in our pulp mill in Argentina in the fourth quarter of 2022. In US$ Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Legal payments 2.3 3.4 1.6 -32.0% 42.7% Impairment provision property, plant and equipment and others 3.5 159.1 2.5 -97.8% 39.6% Operating expenses related to plant stoppages 140.1 13.2 1.9 963.6% 7161.5% Project expenses 0.9 11.9 3.7 -92.0% -74.6% Loss (gain) from asset sales 0.9 3.6 1.7 -75.0% -47.4% Loss and repair of assets 8.3 2.0 0.0 326.1% 46088.9% Loss of forests 42.9 2.6 10.4 1543.1% 314.0% Other taxes 6.5 4.9 3.3 31.7% 96.5% Other expenses (donations, repayments insurance) 3.5 7.8 2.7 -55.3% 30.3% Other expenses 209.0 208.4 27.8 0.3% 650.4% Foreign exchange differences Showed a net loss of US$23.7 million, US$13.1 million lower than the fourth quarter. The main significant effects are given by the variation of local currencies in the countries where we have industrial operations, specially Argentina. Income tax In the first quarter, income tax reached US$57.6 million, a US$22.5 million decrease when compared with the US$80.1 million accounted on the previous quarter. 6

1Q 2023 RESULTS Adjusted EBITDA Adjusted EBITDA for the first quarter of 2023 was US$188.0 million, a 51.5% or US$199.6 million decrease when compared to the previous quarter. There was a decrease in the Adjusted EBITDA of both pulp and wood products business segments, due to a reduction in sales volumes and prices when compared to the fourth quarter. The main decrease, 72.4%, came from the pulp division mainly due to lower revenues, cost associated with the ramp up process of Line 3 and non-scheduled mill stoppages. On the other side, our wood products division decreased by 11.9%, mainly due to lower revenues. In U.S. Million Q1 2023 Q4 2022 Q1 2022 QoQ YoY Net Income (54.3) (177.6) 329.1 -69.4% 116.5% Financial costs 80.1 64.5 47.0 24.3% 70.5% Financial income (22.8) (22.3) (13.3) 2.1% 70.9% Income tax (57.6) (80.1) 76.6 -28.1% 175.2% EBIT (54.5) (215.5) 439.4 -74.7% 112.4% Depreciation & amortization 147.9 116.6 132.7 26.9% 11.5% EBITDA 93.4 (98.9) 572.1 -194.4% -83.7% Fair value cost of timber harvested 85.1 109.7 78.2 -22.4% 8.8% Gain from changes in fair value of biological assets (52.6) 181.0 (53.7) -129.1% -2.0% Exchange rate differences 23.7 36.8 19.0 -35.5% 24.8% Others (*) 38.4 159.1 12.9 -75.9% 198.2% Adjusted EBITDA 188.0 387.6 628.4 -51.5% -70.1% (*) Includes provision from forestry fires and provisions from property, plants and equipment, and others. Adjusted EBITDA variation by business segment (in US$ million) 387.6 (204.2) ( 18.4 ) 22.9 188.0 Q4 2022 Pulp Wood Products Consolidation Adj. & Others Q1 2023 7

Pulp Adjusted EBITDA The Adjusted EBITDA for our pulp business segment reached US$77.7 million during this quarter, which translates to a 72.4% or US$204.2 million decrease compared to the fourth quarter of 2022. Pulp EBITDA Mg reached 12.0%, 26.9% lower than the previous quarter. 36.6% 46.3% 80.7% 46.8% 43.9% 37.0% 40.4% 38.9% 12.0% 210 330 614 352 325 281 308 282 78 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Adjusted EBITDA EBITDA Mg Wood Products Adjusted EBITDA The Adjusted EBITDA for our wood products business was US$136.0 million during this quarter, which translates to a 11.9% or US$18.3 million decrease, compared to the previous quarter. Wood products EBITDA Mg was 17.2%, 0.6% lower than the previous quarter. 187 254 338 320 331 358 283 154 136 24.3% 30.2% 35.8% 32.3% 32.5% 32.3% 25.4% 17.8% 17.2% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Adjusted EBITDA EBITDA Mg 8

1Q 2023 RESULTS Pulp Business During the first quarter of 2023, prices decreased in all markets and grades with global stocks increasing consistently, following the trend of the fourth quarter of 2022. In long fiber, higher production in Northern Europe was offered in Asia. Regarding short fiber, lower demand and new production capacity implied that buyers put pressure on prices. In China, after the Chinese New Year, reactivation in paper markets was weaker than expected., with high levels of inventories throughout the chain. During the quarter, the tissue industry began to reduce its operating rate in response to weak sales. On the supply side, additional volumes from other producers, Russian exports and shipments deviations from other destinations put pressure and prices for all fibers declined throughout the quarter. In Europe, paper demand and production decreased considerably, implying that paper manufacturers margins continued to be positive, only affecting demand for pulp. Demand from the tissue industry, specifically the “At-Home” segment, remained stable. Pulp stocks increased, mainly in ports, throughout the first quarter of 2023 (stocks of pulp producers and final customers), implicating lower spot prices than contract prices. During the first quarter of 2023, short fiber prices decreased more than long fiber prices. In Dissolving Pulp, the market was relatively stable, with some price increases during February and March. In the Viscose market, producers are increasing their operation rate to 70-80%, with better figures in consumptions and exports. Production during the first quarter of 2023 was affected by the unscheduled shutdown of the Constitución and Nueva Esperanza mills. Additionally, Arauco´s line 3 began its production. Production and Sales Volume (In thousand tonnes) 783 884 876 733 781 697 Q1 2022 Q4 2022 Q1 2023 Production Sales 9

1Q 2023 RESULTS Wood Products Business Panels Average prices and sales volume decreased 4.7% and 2.3% respectively during the first quarter of 2023. In terms of supply, volumes and prices were still affected by volume increases from Brazil to the rest of the region, especially in MDF. On the demand side, the downward effect persists due to higher interest rates, currency devaluations, high inventories and political uncertainty in some South American countries. Production and Sales Volume: Panels (1) (In thousand m3) 1,511 1,401 1,167 1,230 1,295 1,202 Q1 2022 Q4 2022 Q1 2023 Production Sales (1) Includes PB, MDF, OSB, Composite panels and Retail Panels. Sawn timber Sales volume and average prices decreased 10.0% and 3.7% respectively. By the end of 2022, the effects of lower economic activity influenced different markets. China was affected by real estate problems, restrictions associated with Covid and low economic growth. Lastly, rest of Asia and Europe remained affected by high inventories, high interest rates and geopolitical uncertainty. In the US, Remanufactured Wood Products sales continued to be affected by rate hikes, high inventories in the logistics chain and higher supply, very similar when compared to the fourth quarter 2022. Production and Sales Volume: Sawn Timber (2) (In thousand m3) 635 549 504 472 475 415 Q1 2022 Q4 2022 Q1 2023 Production Sales (2) Includes sawn timber, kilned sawn timber, remanufactured wood products, pallets Note: Sales include trading Plywood Volumes and sales slightly decreased 3.8 and 1.3% respectively. There was a lower demand for Plywood when compared to the same period of the previous year, mainly explained by the effect of higher interest rates in America and Oceania, which affected the construction and remodeling sectors. Production and Sales Volume: Plywood (In thousand m3) 128 152 119 109 57 108 Q1 2022 Q4 2022 Q1 2023 Production Sales 10

1Q 2023 RESULTS Capital Expenditures During this quarter, capital expenditures (*) were US$334.6 million, US$45.9 million lower than the previous quarter. In terms of CAPEX-related expenditures, there was a decrease of 19.5% or US$54.3 million related to less purchase of MAPA’s property plant and equipment compared to the fourth quarter of 2022, partially offset by an increase of 21.5% or US$19.3 million related to forestry investments. US$ Million Q1 2023 Q4 2022 Q1 2022 YTD 2023 YTD 2022 Cash flow used to obtain control of subsidiaries or other businesses — — — — — Cash flow used to purchase in associates — (9.7) — — — Other cash payments to acquire interests in joint ventures — — — — — Purchase and sale of property, plant and equipment (223.7) (278.1) (337.1) (223.7) (337.1) Purchase and sale of intangible assets (1.4) (2.5) (1.1) (1.4) (1.1) Purchase of other long-term assets (109.5) (90.1) (86.6) (109.5) (86.6) Total CAPEX (*) (334.6) (380.5) (424.8) (334.6) (424.8) (*) On a cash basis. Capital Expenditures (In US$ Million) 402 Q2 2021 365 Q3 2021 498 Q4 2021 425 Q1 2022 395 Q2 2022 387 Q3 2022 380 Q4 2022 335 Q1 2023 11

1Q 2023 RESULTS Free Cash Flow During the first quarter, Free Cash Flow increased by US$21.6 million compared to the fourth quarter of 2022, with outflows of US$245.8 million. Cash from Operations decreased US$217.0 million mostly due to lower Adjusted EBITDA, and Cash used in financing activities decreased US$192.7 mostly due to the dividends paid in December 2022. US$ Million Q1 2023 Q4 2022 Q1 2022 Adjusted EBITDA 188.0 387.6 628.4 Working Capital Variation (86.0) 56.7 (121.5) Interest paid and received (18.8) (54.8) (29.4) Income tax received (paid/refunded) (27.0) (77.3) (51.8) Other cash inflows (outflows) 47.6 8.6 40.0 Cash from Operations 103.8 320.8 465.7 Capex (*) (334.6) (380.5) (424.8) Proceeds from investment activities 3.7 8.0 32.1 Other inflows of cash, net 0.1 2.9 (1.1) Cash from (used in) Investment Activities (330.8) (369.6) (393.7) Dividends paid - (188.6) - Other inflows of cash, net (13.7) (17.7) (16.3) Proceeds from issue of shares - - - Cash from (used in) Financing Activities - Net of Proceeds and Repayments (13.7) (206.4) (16.3) Effect of exchange rate changes on cash and cash equivalents (5.1) (12.2) 17.7 Free Cash Flow (245.8) (267.5) 73.4 (*) On a cash basis. Net Debt Variation Q1 2023 – Q4 2022 (in US$ million) 5,051.2 Net Debt Q4 22 (245.8) Free Cash Flow (22.4) Exchange rate/Inflation variation (123.0) Accrued interest variation (28.5) Leasing Variation 5,470.9 Net Debt Q1 23 12

1Q 2023 RESULTS Cash Our cash position was US$872.8 million at the end of the first quarter, which translates to a 30.8% increase, equivalent to US$205.6 million, when compared to the end of the fourth quarter of 2022. This was mostly due to an increase in our financial debt partially offset by a negative free cash flow during the quarter. Additionally to our cash position, the Company has a committed revolving credit facility for a total amount of US$375 million, which as of the date of this report hasn’t been withdrawn. This facility is due in February 2025. Cash by Currency Other Currencies 14% Argentinean Peso 12% Brazilian Real 22% U.S. Dollar 52% Cash by Instrument Money Market Funds 16% Time Deposits 39% Investment Accounts 45% 13

1Q 2023 RESULTS Financial Debt ARAUCO’s total financial debt as of March 31, 2023 was US$6.343.7 million, an increase of 10.9% or US$625.3 million when compared to December 31, 2022. Our consolidated net financial debt increased 8.3% or US$419.7 million when compared with December 2022. Debt by Currency Other Currencies 5% EUR (2) 8% UF (1) (2) 20% U.S. Dollar 67% Debt by Instrument Leasing 5% Banks 22% Bonds 73% (1) UF is a Chilean monetary unit indexed to inflation. (2) Swapped to USD Our leverage, measured as Net Financial Debt/LTM Adjusted EBITDA was 3.17x, which compares to the 2.33x in the last quarter. This increase is mainly explained by 20.3% decrease in LTM Adjusted EBITDA and an 8.3% increase in net financial debt. Net Financial Debt and Leverage (In US$ Million) 2.97x 4,760 Q2 2021 2.00x 4,463 Q3 2021 1.83x 4,570 Q4 2021 1.71x 4,686 Q1 2022 1.64x 4,587 Q2 2022 1.89x 4,569 Q3 2022 2.33x 5,051 Q4 2022 3.17x 5,471 Q1 2023 14

1Q 2023 RESULTS As of March 2023, short term bank obligations (which includes accrued interest) sum up US$645.0 million. Bank obligations include the following maturities: US$609.2 million in bank loans and US$35.8 million in leasing. Short term bond obligations sum up US$115.6 million. These obligations include amortizations of local bonds, and interest payments of our USD-denominated bonds. Debt Amortization Profile as of March 31, 2023 (In US$ Million) 115 645 2023 546 336 2024 48 199 2025 270 129 2026 541 92 2027 181 83 2028 543 79 2029 516 12 2030 21 12 2031 21 13 2032 224 13 2035 1614 64 2036 & Thereafter Bank Loans and Leasing Bonds Total 15

1Q 2023 RESULTS First Quarter Subsequent Events and News Form 20F Filing On April 19th, we filed our Form 20F for the year 2022 to the Securities and Exchange Commission, as part of the regulatory requirements we have as a result of our previous registered bond issuances in the US. This report offers a wide and comprehensive view of our company, and a detailed discussion about the financial results of 2022. You will find our Form 20F for the year 2022 on the SEC website clicking here, or in our Investor Relations´ section clicking here Forest Fires update During the last forest fire season in Chile and as of May 5th, we have observed 1,522 fires (16.6% down when compared to last season’s). Nevertheless, these fires have been of greater intensity and have affected a higher number of hectares reaching approximately 47,000 vs. last season’s 4,908. This was mainly due to a combination of multiple irresponsible or intentional actions by third parties and extreme unfavorable weather conditions such as high temperatures, low humidity and wind gusts. As part of our permanent efforts in fighting these fires, we made more than 30 thousand water drops, in more than 6 thousand flight hours. Also, 35% of the fires we fought during this season took place in properties that belong to third parties. We accounted a US$42.9 million net loss due to forest fires during the first quarter of 2023. 16

ESG Sustainable Bond On April 25, ARAUCO issued its first Sustainable Bond in the local market, bonds that are dematerialized and to bearer, which most relevant conditions are as follows: 1. A) Series “Y” Bonds, for a total amount of 2,000,000 Unidades de Fomento (“UF”), maturing on April 10, 2032. Interests will accrue on the unpaid principal, expressed in UF, a coupon interest of 3.10% per annum. B) Series “Z” Bonds, for a total amount of 5,000,000 UF, maturing on April 10, 2044. Interests will accrue on the unpaid principal, expressed in UF, a coupon interest of 3.2% per annum. 2. Both series have a Chilean credit risk rating of AA/Stable, according to Fitch Chile and Feller Rate. 3. The proceeds from the placements will be used 100% for general corporate purposes of the Company and/or its subsidiaries. The abovementioned bonds are classified as “sustainable”, since regardless of the use of the proceeds described in the previous paragraph, Arauco will destine an amount equivalent to the proceeds to one or more green and social projects selected for the purposes of the issuance in accordance with the Sustainability Bond Framework adopted by the Company and published on its website. Green and social projects may include: (i) projects with disbursements made within the 36 months preceding the issue date of the bonds and (ii) projects with disbursements to be made after the referred issuance, and up to the maturity date of the same bonds. Integrated Report On April 14th, as a requirement from the CMF (“Comisión para el Mercado Financiero”), we published Arauco’s first Integrated Report, which consolidates the Sustainability Report and the Annual Report, publications that we used to prepare separately. This publication summarizes the performance of the company in 2022 and establishes our medium and long term challenges in financial, social and environmental matters, among others. You will find our Integrated Report for the year 2022 in our website clicking here for English or here for Spanish 17

UPCOMING EVENTS 1Q 2023 RESULTS CONFERENCE CALL Thursday, May 18, 2023 09:00 Santiago Time 09:00 Eastern Time (New York) Dial in: +1 (844) 450 3845 from the US +56 (44) 208 1274 from Chile +55 (11) 3181 8565 from Brazil +1 (412) 317 6368 from other countries For further information, please contact: Marcelo Bennett Treasurer marcelo.bennett@arauco.com Phone: +56 2 2461 7309 Constanza Vasquez Investor Relations constanza.vasquez@arauco.com Phone: +56 2 2461 7434 investor_relations@arauco.cl 18

1Q2023RESULTS Financial Statements Income Statement In US$ Million Q1 2023 Q4 2022 Q1 2022 YTD 2023 YTD 2022 Revenues 1,439.5 1,594.0 1,761.6 1,439.5 1,761.6 Cost of sales (1,034.0) (1,051.9) (1,003.2) (1,034.0) (1,003.2) Gross profit 405.5 542.1 758.5 405.5 758.5 Other income 75.6 (144.5) 82.8 75.6 82.8 Distribution costs (160.9) (192.4) (234.0) (160.9) (234.0) Administrative expenses (149.8) (167.7) (140.8) (149.8) (140.8) Other expenses (209.0) (208.4) (27.8) (209.0) (27.8) Financial income 22.8 22.3 13.3 22.8 13.3 Financial costs (80.1) (64.5) (47.0) (80.1) (47.0) Share of profit (loss) of associates and joint ventures accounted for using equity method 7.9 (7.8) 19.7 7.9 19.7 Other income (loss) 0.0 0.0 0.0 0.0 0.0 Exchange rate differences (23.7) (36.8) (19.0) (23.7) (19.0) Income before income tax (111.9) (257.7) 405.7 (111.9) 405.7 Income tax 57.6 80.1 (76.6) 57.6 (76.6) Net income (54.3) (177.6) 329.1 (54.3) 329.1 Profit attributable to parent company (54.2) (177.3) 329.1 (54.2) 329.1 Profit attributable to non-parent company (0.1) (0.3) 0.0 (0.1) 0.0 19

1Q 2023 RESULTS Balance Sheet In US$ Million 31-03-2023 31-12-2022 31-03-2022 Cash and cash equivalents 872.8 667.2 1,065.4 Other financial current assets 27.6 15.4 9.6 Other current non-financial assets 258.6 206.1 194.5 Trade and other receivables-net 853.1 873.2 956.6 Related party receivables 3.4 7.6 6.0 Inventories 1,527.2 1,470.0 1,299.0 Biological assets, current 349.7 330.4 355.6 Tax assets 193.2 203.7 227.3 Non-Current Assets classified as held for sale 0.2 1.3 1.7 Total Current Assets 4,085.8 3,774.9 4,115.8 Other non-current financial assets 108.5 63.3 34.6 Other non-current and non-financial assets 114.5 92.5 100.9 Non-current receivables 38.5 32.7 21.3 Investments accounted through equity method 385.2 365.7 363.0 Intangible assets 70.7 73.4 82.1 Goodwill 55.2 54.8 60.6 Property, plant and equipment 9,917.6 9,848.8 9,443.6 Biological assets, non-current 2,834.8 2,864.9 3,062.6 Deferred tax assets 11.4 9.0 8.2 Total Non-Current Assets 13,536.4 13,405.2 13,176.9 TOTAL ASSETS 17,622.2 17,180.1 17,292.7 Other financial liabilities, current 761.8 412.2 415.4 Trade and other payables 755.1 812.8 711.3 Related party payables 18.9 14.3 5.3 Other provisions, current 10.1 9.5 0.3 Tax liabilities 18.0 26.9 147.8 Current provision for employee benefits 8.2 7.6 6.3 Other non-financial liabilities, current 349.0 243.0 397.4 Total Current Liabilities 1,921.1 1,526.3 1,683.9 Other non-current financial liabilities 5,648.9 5,382.8 5,471.2 Trade and Other payables non-current 28.6 26.8 2.7 Other provisions, non-current 30.5 40.7 30.6 Deferred tax liabilities 1,700.9 1,785.9 1,779.3 Non-current provision for employee benefits 94.9 87.7 73.1 Other non-financial liabilities, non-current 70.6 69.9 89.9 Total Non-Current Liabilities 7,574.6 7,393.8 7,446.8 Non-parent participation 4.9 5.2 7.4 Net equity attributable to parent company 8,121.7 8,254.8 8,154.6 TOTAL LIABILITIES AND EQUITY 17,622.2 17,180.1 17,292.7 20

1Q 2023 RESULTS Cash Flow Statement US$ Million Q1 2023 Q4 2022 Q1 2022 YTD 2023 YTD 2022 Receipts from sales of goods and rendering of services 1,631.2 1,687.2 1,806.0 1,631.2 1,806.0 Other cash receipts (payments) 88.3 118.5 110.5 88.3 110.5 Payments of suppliers and personnel (less) (1,572.0) (1,349.2) (1,371.4) (1,572.0) (1,371.4) Interest paid and received (18.8) (54.8) (29.4) (18.8) (29.4) Income tax paid (27.0) (77.3) (51.8) (27.0) (51.8) Other (outflows) inflows of cash, net 0.1 (4.7) 1.9 0.1 1.9 Net Cash Provided by (Used in) Operating Activities 103.8 320.8 465.7 103.8 465.7 Capital Expenditures (334.6) (380.5) (424.8) (334.6) (424.8) Other investment cash flows 3.8 10.9 31.1 3.8 31.1 Net Cash Provided by (Used in) Investing Activities (330.8) (369.6) (393.7) (330.8) (393.7) Proceeds from borrowings 590.4 103.6 10.0 590.4 10.0 Repayments of borrowings (138.9) (98.5) (29.1) (138.9) (29.1) Dividends paid 0.0 (188.6) 0.0 0.0 0.0 Other inflows of cash, net (13.7) (17.7) (16.3) (13.7) (16.3) Proceeds from Issue of Shares 0.0 0.0 0.0 0.0 0.0 Net Cash Provided by (Used in) Financing Activities 437.8 (201.3) (35.4) 437.8 (35.4) Total Cash Inflow (Outflow) of the Period 210.7 (250.1) 36.6 210.7 36.6 Effect of exchange rate changes on cash and cash equivalents (5.1) (12.2) 17.7 (5.1) 17.7 Cash and Cash equivalents at beginning of the Period 667.2 929.6 1,011.1 667.2 1,011.1 Cash and Cash Equivalents at end of the Period 872.8 667.2 1,065.4 872.8 1,065.4 21

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Celulosa Arauco y Constitución S.A.
	(Registrant)
Date: May 22, 2023	By:	/s/ Matías Domeyko Cassel
	Name:	Matías Domeyko Cassel
	Title:	Chief Executive Officer