6-K 1 arr017_6k.htm FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

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

of the Securities Exchange Act of 1934

For the month of March, 2025

Commission File Number 33-99720

ARAUCO AND CONSTITUTION PULP INC.

(Translation of registrant’s name into English)

El Golf 150

Fourteenth Floor

Santiago, Chile

(Address of principal executive offices)

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

Form 20-F x Form 40-F ¨

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

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

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

Yes ¨ No x

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

ARAUCO AND CONSTITUTION PULP INC

TABLE OF CONTENTS

Item		Page

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

RATIO ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS

1. ANALYSIS OF FINANCIAL POSITION

a) Statement of financial position

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

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

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

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

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

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

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

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

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

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

⁽¹⁾:

Annual average.

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

b) Statement of profit or loss

Profit before income tax

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

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

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

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

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

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

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

⁽¹⁾:

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

⁽²⁾:

Includes non-controlling interest.

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

(*)

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

2. MAIN SOURCES OF FINANCING

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

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

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

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

3. MARKET SITUATION

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

Wood Products Business

Sawn timber

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

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

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

Plywood

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

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

Panels (MDF, PB, Melamine)

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

4. ANALYSIS OF CASH FLOW

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

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

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

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

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

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

5. MARKET RISK ANALYSIS

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

Cash flows from (used in) investing activities

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

Cash flows from (used in) financing activities

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

NOTE 1. PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

Entity Information

Celulosa Arauco y Constitución S.A. and subsidiaries, (hereafter “Arauco” or the “Company”), tax identification number 93.458.000-1, is a closely held corporation. As it is an issuer of publicly offered securities (bonds), these are registered in the Securities Registry (the “Registry”) of the Chilean Commission for the Financial Market (“CMF”), and the Company is therefore subject to the supervision of said Commission. Additionally, the Company is registered as a non-accelerated filer in the Securities and Exchange Commission (SEC) of the United States of America.

The Company’s head office address is El Golf Avenue 150, 14^thfloor, Las Condes, Santiago, Chile.

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

As of December 31, 2024, Arauco is controlled by Empresas Copec S.A., tax identification number 90.690.000-9, which owns 99.999916% of Arauco, and is registered in the Securities Registry as No. 0028. Each of the above mentioned companies is subject to the oversight of the CMF.

Moreover, Empresas Copec S.A. is controlled by the public corporation AntarChile S.A., tax identification number 96.556.310-5, which owns 60.8208% of Empresas Copec S.A. Furthermore, the ultimate shareholders of AntarChile S.A. and, consequently, of Empresas Copec S.A., are Mr. Roberto Angelini Rossi, tax identification number 5.625.652-0, and Mrs. Patricia Angelini Rossi, tax identification number 5.765.170-9.

Arauco’s consolidated financial statements were prepared on a going concern basis.

Presentation of consolidated financial statements

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

Consolidated statements of financial position as of December 31, 2024 and 2023.

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

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

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

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

Explanatory disclosures (notes).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Period covered by the consolidated financial statements

As of December 31, 2024 and 2023.

Date of approval of the consolidated financial statements

These consolidated financial statements were approved by the Board of Directors of the Company (the “Board”) at the Extraordinary Meeting No. 730 on February 26, 2025.

Abbreviations used in this report:

IFRS - International Financial Reporting Standards

IASB - International Accounting Standards Board

IAS - International Accounting Standards

MU.S.$ - Millions of U.S. dollars

ThU.S.$ - Thousands of U.S. dollars

U.F. – Inflation index-linked units of account

ICMS – Tax movement of inventories and services (Brazil)

ThCLP$ - Thousands of Chilean pesos

ThR$ - Thousands of Brazilian real

Th€ - Thousands of Euros

Functional and Presentation Currency

Arauco and most of its subsidiaries determined the United States (“U.S.”) dollar as its functional currency since the majority of its revenues from sales of its products are derived from exports denominated in U.S. dollars, while their costs of sales are to a large extent related or indexed to the U.S. dollar.

For the pulp reportable segment, most of the sales are exports denominated in U.S. dollars and costs are mainly related to plantation costs which are settled in U.S. dollars.

For the wood reportable segment, although total sales include a mix of domestic and exports sales, prices of the products are established in U.S. dollars, which is also the case for the cost structure of the related raw materials.

In relation to the cost of sales, although labor and services costs are generally billed and paid in local currency, these costs are not as significant as the costs of raw materials, which are driven mainly by global markets and therefore, influenced mostly by the U.S. dollar.

The currency used to finance operations is mainly the U.S. dollar.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Summary of significant accounting policies

Basis for preparation of the consolidated financial statements

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

The consolidated financial statements have been prepared on a historical cost basis, except for biological assets and certain derivative financial instruments which are measured at revalued amounts or fair value at the end of each period as explained in the following significant accounting policies.

Critical accounting estimates and judgments

The preparation of these consolidated financial statements, in accordance with IFRS, requires management to make estimates and assumptions that affect the carrying amounts reported. These estimates are based on historical experience and various other assumptions that are considered to be reasonable. Actual results may differ from these estimates. Management believes that the accounting policies below are the critical judgments that have the most significant effect on the amounts recognized in the consolidated financial statements.

- Biological assets

The recovery of forest plantations is based on discounted cash flow models which means that the fair value of biological assets is calculated using cash flows from continuing operations on a discounted basis, based on our sustainable forest management plans and the estimated growth of forests.

The measurement of the fair value of the biological assets is determined using a discounted cash flow model. Our cash flow projections include significant judgments and assumptions relating to discount rates, estimated growth of the forests and sales margins. This valuation is performed on the basis of each identifiable farm block and for each type of tree. The main considerations used to calculate the valuation of forest plantations and a sensitivity analysis are presented in Note 20.

- Litigation and contingencies

Arauco and its subsidiaries are subject to certain litigation proceedings. Future impact on Arauco’s financial condition derived from such litigations is estimated by management, in collaboration with its legal advisors. Arauco applies judgment when interpreting the reports of its legal advisors who provide updated estimates of the legal contingencies at each reporting period and/or at each time a modification is determined to be necessary. For a description of current litigations see Note 18.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Consolidation

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

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

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

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

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

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

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

c) rights arising from other contractual arrangements; and

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

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

Consolidation of an investee shall begin from the date the investor obtains control of the investee and cease when the investor loses control of the investee. An entity includes the income and expenses of an acquired or sold subsidiary in the consolidated financial statements from the date it gains control until the date when the entity ceases to control the subsidiary.

The profit or loss of each component of other comprehensive income is attributed to owners of the parent company and the non-controlling interest, as appropriate. Total comprehensive income is attributed to the owners of the parent company and non-controlling interests even if the results of the non-controlling interest have a deficit balance.

If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for transactions and other events in similar circumstances, appropriate adjustments are made to the consolidated financial statements of subsidiaries in order to ensure compliance with Arauco's accounting policies.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

The consolidated financial statements at the end of this period include the assets, liabilities, income and expenses of the subsidiaries shown in Note 13.

Certain consolidated subsidiaries have Brazilian real, Mexican pesos, Canadian dollars, Chilean pesos and Argentine pesos as their functional currencies. For consolidation purposes, the financial statements of those subsidiaries have been prepared in accordance with IFRS and translated as indicated in Note 1 (e) (ii).

The subsidiaries non-controlling interests in profits or losses and in the equity are presented separately in the consolidated statement of comprehensive income, in the consolidated statement of changes in equity and in the consolidated statement of financial position respectively.

Segments

Arauco has defined its reportable segments according to its business areas, based on the products and services sold to its customers. This definition is consistent with the management, resource allocation and performance assessment made by key personnel responsible for making relevant decisions related to the Company’s operation. The personnel responsible for making such decisions are the Executive Vice-president and the Chief Executive Officer who are the highest authorities for making decisions and are supported by the Vice-presidents of each segment.

Based on the aforementioned process, the Company has established reportable segments according to the following business units:

Pulp

Wood products

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

Functional currency

(i)

Functional currency

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

(ii)

Translation to the presentation currency of Arauco

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

(ii)

Foreign currency transactions

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

Cash and cash equivalents

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

Financial instruments

Financial assets

Initial classification

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

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

The classification is based on the business model used to manage the assets and the characteristics of their contractual cash flows.

Management determines the classification of its financial assets at the time of their initial recognition.

(a) Financial assets at fair value through profit or loss: these instruments are initially measured at fair value. Net income and losses, including any income from interest or dividends, are registered in the profit or loss of the period. Financial assets are classified in the category of financial assets at fair value through profit or loss when they are maintained for negotiation or designated in their initial registration as assets at fair value through profit or loss. A financial asset can be classified in this category if it is acquired mainly for the purposes of being sold in the short-term. Gain or losses of assets held for negotiations are registered in the consolidated statements of profit or loss, and the related interest is registered independently as financial income. Derivatives are classified as acquired for negotiation also unless they are designated as hedging instruments.

(b) Assets measured at amortized cost: they are initially registered at the fair value of the transaction, adding or subtracting the transaction costs that are directly attributable to the issuance of the financial asset or financial liability. The financial asset is maintained within a business model, the objective of which is to maintain financial assets to obtain contractual cash flows and the contractual conditions of the asset give rise, on specified dates, to cash flows that are solely payments of principal and interest (“SPPI”) over the amount of the outstanding principal.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Subsequent measurement

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

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

a) Financial assets at fair value through profit or loss: these instruments are subsequently measured at fair value. Net earnings and losses, including income from interest and dividends, are registered as profits or losses for the period. These instruments are held for negotiation, and they are mainly acquired to be sold in the short-term. Derivatives are also classified as held for negotiation, unless they are registered as hedging instruments. Financial instruments of this type are classified as other current and non-current financial assets. They are subsequently valuated by determining their fair value, registering changes in value in the consolidated statements of profit or loss, in the items of financial income or financial costs.

b) Financial assets measured at amortized cost: These instruments are subsequently measured at amortized cost minus accumulated amortizations, using the effective interest method and adjusted by loss allowance and volume discounts, in the case of financial assets. Financial income and expenses, foreign exchange income and losses, and impairment are registered in results. Any earnings or losses due to initial or subsequent reductions of the value of the asset are registered in the statement of profit or loss of the period. Borrowings and receivables are non-derivative financial instruments with fixed or determinable payments not traded in any active market. They are registered at amortized cost, registering accrued conditions directly in profit or loss.

Arauco measures accumulated losses in a quantity equivalent to expected credit losses during the lifelong commitment. Expected credit losses are based on contractual cash flow differences based on the allowance of each contract and the cash flows that Arauco expects. The difference is then discounted based on an approximation of the asset’s original effective interest rate. The asset’s carrying value is reduced as the allowance is used, and the loss is recognized in sales expenses in the consolidated statements of profit or loss. When an account receivable cannot be collected, it is regularized against the allowance account for receivables. Subsequent recoveries of previously impaired amounts are recognized as a debit in distribution cost.

Derivative financial instruments are explained in Note 1 h).

Financial liabilities

Arauco classifies its financial liabilities as follows: fair value through profit or loss, derivatives designated as effective hedging instruments and amortized costs.

Management determines the classification of its financial liabilities upon initial recognition. Financial liabilities are derecognized when the obligation is cancelled, settled or expired. When an existing financial liability is replaced with another of the same provider under substantially different terms, or where the terms of an existing liability are substantially amended, such exchange or modification is treated as a write-off of the original liability, with a new liability being recognized, and the difference between the respective carrying amounts is recognized in the consolidated statement of profit or loss.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Financial liabilities are initially recognized at fair value, and in the case of borrowings, they include the costs directly attributable to the transaction. The subsequent measurement of the financial liabilities depends on their classification:

Financial liabilities at fair value through profit or loss

Financial liabilities are included in the category of financial liabilities at fair value through profit or loss when they are held for trading or originally designated at fair value through profit or loss. Income and losses from liabilities held for trading are recognized in profit or loss. This category includes non-designated derivatives for hedging accounting.

Financial liabilities at amortized cost

Other financial liabilities are subsequently valued at their amortized cost based on the effective interest rate method. The amortized cost is calculated taking into account any premium or acquisition discount and includes the costs of transactions that are an integral part of the effective interest rate. This category includes commercial accounts payable and other accounts payable, lease liabilities, as well as the borrowings included in other current and non-current financial liabilities.

Derivative financial instruments

(i) Derivative financial instruments - The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps, currency swaps and zero cost collar contracts. The Company’s policy is to enter into derivatives contracts only for economic hedging purposes and there are no instruments with speculation objectives.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured at fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss unless the derivative is designated as a hedging instrument and complies with hedge accounting requirements, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

(ii) Embedded derivatives

The Company assesses the existence of embedded derivatives in financial instrument contracts. Derivatives embedded in non-derivative host contracts are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the contracts are not measured at FVTPL as a whole. Arauco has determined that no embedded derivatives currently exist.

(iii) Hedge accounting

The Company designates certain hedging instruments as either fair value hedges or cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, Arauco documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

-Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

-Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, and is included in the Finance costs line item in the consolidated statement of profit or loss. Amounts previously recognized in other comprehensive income are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognized hedged item.

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

Inventories

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

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

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

Biological assets are transferred to inventories when forests are harvested.

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

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

Spare parts that will be consumed in a period of less than twelve months are presented in inventories and recognized as an expense when they are consumed.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Non-current assets held for sale

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

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

Business combinations

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

Investments in associates and joint arrangements

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

Intangible assets other than goodwill

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

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

(i)

Computer software

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

(ii)

Water rights, rights of way and other rights

This item includes water rights, rights of way and other acquired rights recognized at historical cost which have indefinite useful lives as there is no foreseeable limit to the period over which these assets are expected to generate future cash flows. These rights are not amortized, but are tested for impairment at least annually, or when there is any indication that the assets might be impaired.

(iii)

Customers relationships

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

Goodwill

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of impairment testing, goodwill in a business combination is allocated as of the acquisition date to the cash generating unit or a group of cash generating units expected to benefit from the synergies of the combination irrespective of whether other assets or liabilities of the acquired company are allocated to those units or group of units.

The goodwill generated on acquisitions of foreign companies, is expressed in the functional currency of such foreign company.

Goodwill recognized in subsidiaries Arauco Canada Ltd. and Arauco do Brasil S.A., generated on subsidiaries acquisitions whose functional currency is different from the functional currency of the parent company and presentation of these consolidated financial statements, are translated into U.S. dollars at the closing exchange rate.

Property, plant and equipment

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

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

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

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

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

Leases

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

The cost of the asset for right of use comprises:

The amount of the initial measurement of the lease liability. This measurement is at present value of the payments for leases that have not been disbursed as of that date. Payments for leases are discounted using the incremental interest rate for financial borrowings;

Payments for leases performed prior to or as of the initiation date, minus the lease incentives that have been received;

The initial direct costs incurred by the lessee; and

An estimation of the costs to be incurred by the lessee when dismantling and eliminating the underlying asset, restoring the location where the same is located, or restoring the underlying asset to the condition required under the terms and conditions of the lease, unless such costs are incurred in order to produce inventories. The lessee assumes obligations stemming from such costs either at the commencement date, or as a result of having used the underlying asset during a specific period.

After the initial recognition date, Arauco, as lessee, recognizes its asset for right of use by applying the cost model, minus the accumulated depreciation and impairment losses, and adjusted for remeasurement of the liability for lease.

At the beginning, Arauco in the capacity of lessee, recognizes the lease liability at present value of the lease payments that have not been disbursed as of that date. Lease payments are discounted using the incremental interest rate for financial borrowings.

After the initial recognition date, Arauco, as lessee, recognizes a liability for leases by increasing the book value, so as to reflect the interest over the liability for lease, reducing the amount in order to reflect the payments for leases that have been performed and once again recognizing the book value, so as to reflect the remeasurement and also to reflect the essential fixed payments for leases that have been revised.

Arauco presents the assets by right of use in the consolidated statement of financial position and are further disclosed in Note 8. Likewise, lease liabilities are presented in the consolidated statement of financial position and further disclosed in Note 23.

IFRS 16 maintains substantially the accounting requirements of the lessor from IAS 17. Therefore, Arauco has continued to classify its leases as operational or financial, as the case may be.

Income from operating leases in which Arauco is the lessor are recognized on a straight-line basis during the term of the lease. Initial direct costs are added to the book value of the underlying asset and are recognized as expenses during the term of the lease on the same basis as the lease income. Leased assets are included within the statement of financial position, in property, plant and equipment. Arauco did not make adjustments with respect to assets that maintains as a lessor, as a result of IFRS 16 adoption.

When assets are leased under a financial lease, the present value of lease payments are recognized as financial accounts receivable. The difference between the gross receivable and the present value of such amount, is recognized as financial return on capital.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Arauco evaluates the economic nature of the contracts that grant the right to use certain assets, for the purposes of determining the existence of implied leases. In these cases, the Company separates, at the beginning of the contract and based on its relative reasonable values, payments and considerations associated with the lease, from the rest of the elements incorporated into the contract.

Biological assets

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

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

Biological assets shown as current assets correspond to those forestry plantations that will be harvested in the short-term.

Biological growth and changes in fair value of forestry plantations are recognized in the line item “Other income” in the consolidated statements of profit or loss.

Income taxes

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Provisions

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

Revenue recognition

Revenues are valued at fair value of the consideration received or to be received, derived from them. Arauco analyses and takes under consideration all relevant facts and circumstances to apply the five-step model established under IFRS 15 to customer contracts: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue. Additionally, Arauco evaluates the incremental costs of obtaining a contract and the costs incurred to comply with a contract. Arauco recognizes revenues when the steps established in IFRS have been satisfactorily complied with.

Accounts receivable are recognized when control over goods or services has been transferred to the customer, because at this point of the time collection is unconditional and the passage of time is only needed to receive payment.

(i)

Revenue recognition from the sale of goods

Revenue from the sale of goods is recognized when Arauco has transferred to the buyer the significant risks and rewards of ownership of the committed goods, when the amount of revenue can be reliably measured, when Arauco does not retain any managerial involvement over the goods sold and when it is probable that the economic benefits associated with the transaction will flow to Arauco and the costs incurred in respect of the transaction can be measured reliably. Revenue from the sale of goods are recognized when there is no obligation unsatisfied that could affect the customer’s acceptance of the product. The delivery is effective when the products are sent to the specific location, the risks of obsolescence and loss have been transferred to the customer and when Arauco has objective evidence that all acceptance criteria have been satisfied.

Sales are recognized in terms of the price agreed to in the sales contract, less any volume discounts and estimated product returns at the date of the sale. There is no significant financing component given that receivables from sales are collected within a short period, which is in line with market practices.

The structure for recognizing revenue from export sales is based on the 2010 Incoterms, which are the official rules for the interpretation of commercial terms issued by the International Chamber of Commerce.

The main Incoterms used by Arauco are the following:

“CFR (Cost and freight)”, where the company bears all costs including main transportation, until the products arrives at its port of destination. The risk is transferred to the purchaser once the products have been loaded onto the vessel, in the country of origin.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

“CIF (Cost Insurance & Freight)”, where the Company organizes and pays for external freight services and some other expenses. Arauco is no longer responsible for the products once they have been delivered to the ocean carrier company.

(ii)

Revenue recognition from rendering of services

Revenue from the rendering of services is recognized as long as the performance obligation have been satisfied.

Revenue is recognized considering the stage of completion of the transaction at the date of the reporting period, when Arauco has the enforceable right of payment from the rendering of the services.

There is no significant financing component, given that sales are made with a reduced average collection period, which is in line with market practice.

Arauco mainly provides power supply services which are transacted principally in the spot market of the Sistema Eléctrico Nacional (SEN) (“National Electrical System”). According to current regulations, the prices on that market called “Marginal Costs” are calculated by the Coordinador Eléctrico Nacional (CEN) (“National Electrical Coordinator”) and are generally recognized in the period in which the services are rendered.

Electrical power is generated as a by-product of the pulp and wood process and is a complementary business to it, which is initially supplied to the group’s subsidiaries and any surplus is sold to the SEN.

Arauco provides other non-core services such as port services and pest control whose revenues are derived from fixed price service contracts are recognized considering the stage of completion of the services rendered at the date of reporting, generally during the period of the service contract on a straight-line basis over the term of the contract.

Revenues from reportable segments mentioned in Note 24 are measured in accordance with the policies indicated in the preceding paragraphs.

Revenues from inter-segment sales (which are made at market prices) are eliminated in the consolidated financial statements.

Minimum dividend

The statutes of the Company provide that for the purposes of the annual distribution of the net income of each year, it will be up to the Ordinary Shareholders' Meeting annually to determine the part of said profits that will be distributed as a dividend to the shareholders. Such determination will be made by the Board without being subject to the minimum of 30% established in article No. 79 of the Chilean Corporations Law No. 18,046, on Public Limited Companies, and may agree to the distribution of a lower percentage.

In a board meeting on September 24, 2024, it was agreed to modify the dividend policy, establishing that an amount equivalent to 30% of the distributable net profit for the fiscal years 2024, 2025 and 2026, will be distributed annually. For subsequent years, an amount equivalent to 40% of the distributable net income for each fiscal year will be distributed as dividends. Nevertheless, the Board of Directors may decide to distribute and pay dividends to the shareholders, to the extent that it expects the year to finalize with positive results and that the Company’s liquidity allows such distribution and payment.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Earning per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to owners of the parent company by the weighted average number of ordinary shares outstanding during the period, excluding the average number of shares in the Company held by a subsidiary, if such circumstance exists. Arauco has not performed any type of transaction with a potential dilutive effect that would cause diluted earnings per share to be different from basic earnings per share.

Impairment

Non-financial assets

The recoverable amount of property, plant and equipment and other long-term assets with finite useful lives are measured whenever there are any circumstances indicating that the assets have to recognize an impairment loss. Among the circumstances to consider as evidence of impairment are significant declines in the assets’ market value, significant adverse changes in the technological environment, obsolescence or physical damages of assets and changes in the manner in which the asset is used or expected to be used). Arauco evaluates at the end of each reporting period whether there is any evidence of the indications above mentioned.

A previously recognized impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount however a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

For the purposes of assessing impairment losses, assets are grouped at the lowest level for which there is identifiable cash flows separately for each cash-generating unit. Non-financial assets, other than goodwill, which had recognized an impairment loss, are reviewed at the end of each reporting period whether there are any circumstances indicating that an impairment loss previously recognized may no longer exist or has decreased.

“Cash-generating units” are the smallest identifiable groups of those cash inflows that are largely independent of the cash inflow from other assets or groups of assets.

Goodwill

Goodwill and intangible assets with indefinite useful life are tested annually for impairment or whenever circumstances indicate it. The recoverable amount of an intangible asset is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognized whenever the carrying amount exceeds the recoverable amount.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

Financial assets

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

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

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

Employee benefits

Arauco constitutes labor obligations for severance payable in all circumstances for certain of its employees with at least 5 years of work in the Company, based on the terms of the staff’s collective and individual bargaining agreements.

The related provision is an estimate of the years of service to be recognized as a future labor obligation liability, in accordance with contracts between Arauco and its employees and pursuant to actuarial valuation criteria for this type of liability. This post-employment benefit is considered a defined benefit plan.

The main factors considered for calculating the actuarial value of severance obligation for years of service are employee turnover, salary increases and life expectancy of the workers included in this benefit.

Actuarial gains and losses are recognized in other comprehensive income in the year they are incurred.

These obligations are related to post-employee benefits in accordance with current standards.

Employee vacations

Arauco recognizes the expense for employee vacation according to labor legislation in each country on an accrual basis.

This obligation is presented in line item “Trade and other current payables” in the consolidated statements of financial position.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Recent accounting pronouncements

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

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

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

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

The adoption of the standards, amendments and interpretations described in the table above have not had a significant impact on Arauco’s consolidated financial statements during its initial application period.

b) Standards, interpretations and amendments, the application of which is not yet mandatory, which have not been adopted in advance:

Amendments and improvements	Content	Mandatory application for annual periods beginning on or after
IAS 21	Lack of Exchangeability	January 1, 2025
	An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose.

IFRS 9 and IFRS 7	Classification and Measurement of Financial Instruments	January 1, 2026
	Clarify the requirements, give the guidance, add new disclosures for certain instruments.

	Contracts Referencing Nature Dependent Electricity
	Clarify the application and disclosure requirements; permitting hedge accounting if these contracts are used as hedging instruments.

IFRS 18	Presentation and Disclosure in Financial Statements	January 1, 2027
	This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss.

IFRS 19	Subsidiaries without Public Accountability: Disclosures	January 1, 2027
	An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19.

Arauco estimates that the adoption of the standards, amendments and interpretations described in the table above will not have a significant impact on Arauco’s consolidated financial statements during its initial application period, except for the new IFRS 18 standard that will modify the actual presentation of the Income Statement, and we are currently evaluating any significant impacts.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 2. ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES

Changes to accounting policies

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

Changes to accounting estimates

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

NOTE 3. DISCLOSURE OF OTHER INFORMATION

Disclosure of information on issued capital

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

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

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

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

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

Dividends paid

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

On May 10, 2023, a definitive dividend of ThU.S.$ 279,622 was paid according to the extraordinary dividend policy distribution of 50% of the distributable net profit after discounting the payment made in December 2022 of ThU.S.$ 183,971.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

The amount of ThU.S.$ 206,684 presented in the consolidated statement of changes in equity for the year ended December 31, 2024, contains the minimum dividend provision. As of December 31, 2023 there was no minimum dividend provision for the 2023 losses.

See Note 26 for details.

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

Dividends paid detail, ordinary shares
Dividends paid	Provisional dividend
Classes of shares for which there are dividends paid	Ordinary shares without series
Date of dividends paid	12-10-2024
Amount of dividends	ThU.S.$ 94,397
Number of shares on which pay dividends	120,474,350
Dividend per shares	U.S.$ 0.783542

Dividends paid detail, ordinary shares
Dividends paid	Definitive dividend
Classes of shares for which there are dividends paid	Ordinary shares without series
Date of dividends paid	05-10-2023
Amount of dividends	ThU.S.$ 279,622
Number of shares on which pay dividends	120,474,350
Dividend per shares	U.S.$ 2.321007

Disclosure of information on reserves

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

Reserves of exchange differences on translation

Reserves of exchange differences on translation correspond to exchange differences of Arauco’s subsidiaries whose functional currency is other than Arauco’s presentation currency.

Reserves of cash flow hedges

The hedging reserve corresponds to the part of the net gains or losses of derivatives financial instruments that qualify as cash flow hedges, in force in Arauco at the end of each period/fiscal year.

Reserve of actuarial losses in defined benefit plans

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Other reserves

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

Other items in the consolidated statements of profit or loss

The table below sets forth other income, other expenses, finance income, finance costs and share of profit (loss) of associates and joint ventures for the year ended December 31, 2024 and 2023 are as follows:

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

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

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

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

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

(1)

In 2024, includes the effect of changes in fair value of plantations and interest expense for the Brazilian companies right-of-use assets that were previously classified as held for sale and sold during the period, through the sale date.

(2)

In 2024, includes the share of the profit of the associate Forestal Vale do Corisco S.A. that were previously classified as held for sale and sold during the period, through the sale date.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 4. INVENTORIES

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash on hand, bank checking account balances, time deposits and mutual funds. These are short-term highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

The investment objective of time deposits is to maximize the amounts of cash surpluses in the short-term. These instruments are permitted under Arauco’s Investment Policy which allows investing in fixed income securities. These instruments have a maturity of less than three months from the date of acquisition.

Arauco invests in local and international mutual funds in order to maximize the returns of cash surpluses denominated in Chilean pesos or in foreign currencies such as U.S. dollars or Euros. These instruments are permitted under Arauco’s Investment Policy.

As of the date of these consolidated financial statements, there are no amounts of cash and cash equivalents with restrictions on use.

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

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

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

Changes in financial liabilities

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

(*):

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

(*)

It includes commissions for bank borrowings.

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

(*):

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 6. INCOME TAXES

The tax rates applicable in the countries in which Arauco operates are 27% in Chile, 35% in Argentina, 30% in Mexico, 34% in Brazil, 25% in Uruguay and 21% in the United States (federal tax rate).

Deferred tax assets

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

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

(*)	See explanatory text in note 22

Certain subsidiaries of Arauco mainly in Chile and Brazil, as of the date of these consolidated financial statements, present tax losses for which we estimate that, given the projection of future profits, will allow the recovery of the deferred tax assets recorded. The total amount of these tax losses is ThU.S.$ 928,974 (ThU.S.$ 956,949 as of December 31, 2023).

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

Deferred tax liabilities

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

Reconciliation of deferred tax assets and liabilities

	Opening		Deferred tax			Deferred tax of ítems			Increase (decrease)		Increase (decrease)			Closing
	balance 01-01-2024		income (expenses)			charged to equity			business combination		net exchange differences			balance 12-31-2024
Deferred tax assets	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Deferred tax assets relating to liabilities provisions		14,008		(1,857	)		-			-		(1,026	)		11,125
Deferred tax assets relating to investments		78,061		57,110			(135,171	)		-		-			-
Deferred tax assets relating to post-employment benefits		25,726		(2,866	)		207			-		(4	)		23,063
Deferred tax assets relating to property, plant and equipment		80,410		10,928			-			644		(2,327	)		89,655
Deferred tax assets relating to impairment provision		12,319		(4,408	)		-			-		(2,239	)		5,672
Deferred tax assets relating to financial instruments		82,535		14,618			(7,337	)		-		(2,682	)		87,134
Deferred tax assets relating to tax loss carry forward		233,468		7,183			-			-		(4,823	)		235,828
Deferred tax assets relating to biological assets		-		4,806			-					-			4,806
Deferred tax assets relating to inventories		25,011		2,634			-			-		(271	)		27,374
Deferred tax assets relating to provisions for income		16,807		19,076			-			-		6			35,889
Deferred tax assets relating to allowance for doubtful accounts		2,384		791			-			-		(15	)		3,160
Deferred tax assets relating to intangible revaluation		35		180			-			-		-			215
Deferred tax assets relating to other deductible temporary differences		39,065		37,220			-			-		(2,494	)		73,791
Total deferred tax assets		609,829		145,415			(142,301	)		644		(15,875	)		597,712

	Opening		Deferred tax			Deferred tax of items			Increase (decrease)		Increase (decrease)			Closing
	balance 01-01-2024		(income) expenses			charged to equity			business combination		net exchange differences			balance 12-31-2024
Deferred tax liabilities	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,415,101		(29,618	)		-			-		(11,319	)		1,374,164
Deferred tax liabilities relating to financial instruments		26,766		(6,617	)		(1,262	)		-		-			18,887
Deferred tax liabilities relating to biological assets		475,592		(8,089	)		-			2,649		(382	)		469,770
Deferred tax liabilities relating to inventory		57,619		(1,411	)		-			-		(107	)		56,101
Deferred tax liabilities relating to prepaid expenses		36,837		(1,947	)		-			-		(1	)		34,889
Deferred tax liabilities relating to intangible		10,420		(2,632	)		-			-		(1,699	)		6,089
Deferred tax liabilities relating to other taxable temporary differences		42,551		(5,471	)		-			-		(3,165	)		33,915
Total deferred tax liabilities		2,064,886		(55,785	)		(1,262	)		2,649		(16,673	)		1,993,815

	Opening		Deferred tax			Deferred tax of items		Increase (decrease)		Decrease due to			Increase (decrease)		Closing
	balance 01-01-2023		income (expenses)			charged to equity		business combination		classification to held for sale			net exchange differences		balance 12-31-2023
Deferred tax assets	ThU.S.$		ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$		ThU.S.$
Deferred tax Assets relating to liabilities provisions		17,896		(3,993	)		-		-		(280	)		385		14,008
Deferred tax Assets relating to investments		-		(57,110	)		135,171		-		-			-		78,061
Deferred tax Assets relating to post-employment benefits		25,904		(924	)		736		-		-			10		25,726
Deferred tax Assets relating to property, plant and equipment		45,919		34,370			-		-		-			121		80,410
Deferred tax Assets relating to impairment provision		13,517		(1,907	)		-		-		-			709		12,319
Deferred tax Assets relating to financial instruments		53,347		15,191			17,397		-		(3,986	)		586		82,535
Deferred tax Assets relating to tax loss carry forward		110,526		121,524			-		3,516		(3,387	)		1,289		233,468
Deferred tax Assets relating to inventories		20,942		4,047			-		-		(50	)		72		25,011
Deferred tax Assets relating to provisions for income		9,941		6,859			-		-		-			7		16,807
Deferred tax Assets relating to allowance for doubtful accounts		2,472		(90	)		-		-		-			2		2,384
Deferred tax Assets relating to intangible revaluation		1,466		(1,055	)		-		-		(457	)		81		35
Deferred tax Assets relating to other deductible temporary differences		25,777		12,885			-		-		(239	)		642		39,065
Total deferred tax assets		327,707		129,797			153,304		3,516		(8,399	)		3,904		609,829

						Deferred tax			Increase		Decrease			Increase
	Opening		Deferred tax			of items			(decrease)		due to			(decrease)			Closing
	balance 01-01-2023		(income) Expenses			charged to equity			business combination		classification to held for sale			net exchange differences			balance 12-31-2023
Deferred tax liabilities	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,421,116		4,372			-			-		(15,638	)		5,251			1,415,101
Deferred tax liabilities relating to financial instruments		27,806		1,173			(2,213	)		-		-			-			26,766
Deferred tax liabilities relating to biological assets		527,988		2,157			-			-		(60,167	)		5,614			475,592
Deferred tax liabilities relating to inventory		56,531		1,059			-			-		-			29			57,619
Deferred tax liabilities relating to prepaid expenses		37,760		(891	)		-			-		-			(32	)		36,837
Deferred tax liabilities relating to intangible		10,173		(311	)		-			-		-			558			10,420
Deferred tax liabilities relating to other taxable temporary differences		23,237		18,224			-			208		-			882			42,551
Total deferred tax liabilities		2,104,611		25,783			(2,213	)		208		(75,805	)		12,302			2,064,886

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Temporary differences

The following tables summarize the deductible and taxable temporary differences:

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

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

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

Income tax expense

Income tax expense consists of the following:

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Reconciliation of income tax expense from statutory tax rate to the effective tax rate.

The reconciliation of income tax expense is as follows:

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

(*) It corresponds mainly to the tax effect associated with the inflation adjustment on Argentine tax bases.

(**) It mainly includes the tax effect generated by the exchange difference in the conversion of tax bases with local currency other than the functional currency.

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

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

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

Current tax assets and liabilities

The current tax assets and liabilities balances are as follow:

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

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

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

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

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

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

As of December 31, 2024, there are no significant assets pledged as collateral to be disclosed in these consolidated financial statements.

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Reconciliation of property, plant and equipment

The following tables set forth the reconciliation of the carrying amount of property, plant and equipment as of December 31, 2024 and December 31, 2023:

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

The useful lives of property, plant and equipment are estimated based on the expected use of the assets. The average useful lives by asset class are as follow:

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 8. Leases

Arauco acting as lessee

Right of use assets

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

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

Property, plant and equipment by right of use, gross

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

Accumulated depreciation and impairment by right of use

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Reconciliation of property, plant and equipment by right of use

The following tables set forth the reconciliation of the carrying amount of property, plant and equipment by right of use as of December 31, 2024 and 2023:

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

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

(*) The amount of depreciation related to land leased for plantations is reclassified to biological assets to form part of the formation costs.

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

The depreciation expense for the period ending December 31, 2024 and 2023 recognized in property, plant and equipment by right of use is as follows:

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Arauco acting as lessor

Reconciliation of financial lease minimum payments:

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

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

Financial lease receivables are presented in the consolidated statements of financial position in line items “Trade and other current receivable” and “Trade and other non-current receivable” depending on their maturities stated above.

Arauco accounts for its lease contracts as financial leases. These lease contracts are for a term of less than six years at market interest rates and leased assets are forestry machinery and equipment. They also include an early termination option, under general and special conditions stipulated in each contract.

Arauco holds leases as lessee and lessor, described in the previous tables, for which there are no impairment contingent payments or restrictions to report.

NOTE 9. REVENUE

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 10. EMPLOYEE BENEFITS

Classes of benefits and expenses by employee

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

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

Sensitivities to assumptions	ThU.S.$

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

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

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

(1)

Entities sold in July 2024.

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

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

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

Effect of foreign exchange rates changes

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Exchange differences recognized in profit or loss, except for those arising on financial instruments measured at fair value through profit or loss		(21,314	)		(35,419	)
Reserve of exchange differences on translation (with non-controlling interests)		259,895			121,470

NOTE 12. Borrowing COSTS

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 13. RELATED PARTIES

Related party disclosures

Related parties are those entities defined in IAS 24 and under the rules of the Chilean Commission for the Financial Market and the Chilean Corporations Law.

The receivable and payable amounts among related parties at the end of each period correspond to commercial and financing transactions denominated in Chilean pesos, U.S. dollars and Brazilian real, where collection or payment deadlines are shown in the following tables and in general do not bear interest, except for financing transactions.

As of the date of these consolidated financial statements, the main transactions with related parties are related to fuel purchases with Copec S.A. and sodium chlorate purchases at EKA Chile S.A.

As of the date of these consolidated financial statements, there were neither provisions for accounts of doubtful collection nor any guarantees granted or received related to the balances with related parties.

Name of group’s main shareholders

The ultimate shareholders of Arauco, directly and indirectly, are Mr. Roberto Angelini Rossi and Mrs. Patricia Angelini Rossi.

Name of the intermediate controlling entity that produces consolidated financial statements for public use

Empresas Copec S.A.

Key management personnel compensation

Compensation to key management personnel, including directors, managers and deputy managers, consist of a fixed monthly salary, and managers and deputy managers also receive an annual bonus subject to the results of the Company and the fulfillment of goals of the business as well as individual performance.

Pricing strategy terms and conditions corresponding to transactions with related parties

Transactions carried out with related parties are intended to contribute to the corporate interest, are adjusted in price, terms and conditions to those prevailing in the market at the time of approval, and meet the requirements and procedures set forth in the law.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

				% Ownership interest						% Ownership interest
			Functional	12-31-2024						12-31-2023
ID N°	Company Name	Country	Currency	Direct		Indirect		Total		Direct		Indirect		Total
77.630.621-5	Agrícola Ranquillón SpA.	Chile	U.S. dollar		-		98.64273		98.64273		-		98.64114		98.64114
77.630.618-5	Agrícola San Carlos SpA.	Chile	U.S. dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.623-1	Agrícola Santa Emilia SpA.	Chile	U.S. dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.625-8	Agrícola Santa Isabel SpA.	Chile	U.S. dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.626-6	Agrícola Siberia SpA.	Chile	U.S. dollar		-		98.64273		98.64273		-		98.64114		98.64114
77.630.629-0	Agrícola Trupán SpA. (1)	Chile	U.S. dollar		-		-		-		-		98.64114		98.64114
-	Arauco Argentina S.A.	Argentina	U.S. dollar		9.97070		90.00940		99.98010		9.97070		90.00940		99.98010
-	Arauco Australia Pty Ltd.	Australia	U.S. dollar		-		99.99898		99.99898		-		99.99898		99.99898
96.547.510-9	Arauco Bioenergía SpA.	Chile	U.S. dollar		98.00000		1.99897		99.99897		98.00000		1.99897		99.99897
-	Arauco Canada Ltd.	Canada	Canadian dollar		-		99.99911		99.99911		-		99.99911		99.99911
-	Arauco Celulose do Brasil S.A.	Brazil	Brazilian real		-		99.99902		99.99902		-		99.99907		99.99907
-	Arauco Colombia S.A.	Colombia	U.S. dollar		1.47783		98.52042		99.99825		1.47783		98.52042		99.99825
-	Arauco do Brasil S.A.	Brazil	Brazilian real		1.06807		98.93105		99.99912		1.06807		98.93105		99.99912
-	Arauco Europe Cooperatief U.A.	The Netherlands	U.S. dollar		0.25003		99.74895		99.99898		0.44979		99.54919		99.99898
-	Arauco Florestal Arapoti S.A. (2)	Brazil	Brazilian real		-		-		-		-		99.99899		99.99899
-	Arauco Forest Brasil S.A. (2)	Brazil	Brazilian real		-		-		-		8.51901		91.48006		99.99907
-	Arauco Participações Florestais Ltda.	Brazil	Brazilian real		-		99.99907		99.99907		-		99.99907		99.99907
-	Arauco Industria de México, S.A.de C.V.	Mexico	Mexican pesos		-		99.99910		99.99910		-		99.99910		99.99910
-	Arauco Industria de Paineis S.A.	Brazil	Brazilian real		-		99.99912		99.99912		-		99.99912		99.99912
-	Arauco Middle East DMCC.	United Arab Emirates	U.S. dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco North America, Inc.	United States	U.S. dollar		0.00010		99.99901		99.99911		0.00010		99.99901		99.99911
-	Arauco MS Participações S.A.	Brazil	Brazilian real		8.52667		91.47240		99.99907		0.20000		99.79898		99.99898
-	Arauco Perú S.A.	Peru	U.S. dollar		0.00126		99.99772		99.99898		0.00126		99.99772		99.99898
-	Arauco Pulp Limited.	United Kingdom	U.S. dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco Ventures Limited.	United Kingdom	U.S. dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco Wood (China) Company Limited.	China	U.S. dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco Wood Limited.	United Kingdom	U.S. dollar		12.63126		87.36785		99.99911		12.63126		87.36785		99.99911
-	Araucomex S.A. de C.V.	Mexico	U.S. dollar		0.00050		99.99861		99.99911		0.00050		99.99861		99.99911
-	Araucomex Servicios, S.A. de C.V.	Mexico	Mexican pesos		0.33333		99.66578		99.99911		0.33333		99.66578		99.99911
96.657.900-5	Consorcio Protección Fitosanitaria Forestal S.A.	Chile	Chilean Pesos		-		56.83115		56.83115		-		56.83107		56.83107
-	Empreendimentos Florestais Santa Cruz Ltda. (2)	Brazil	Brazilian real		-		-		-		-		99.99907		99.99907
76.869.577-0	E2E SpA.	Chile	Chilean pesos		1.00000		98.99861		99.99861		1.00000		98.99861		99.99861
85.805.200-9	Forestal Arauco S.A.	Chile	U.S. dollar		99.94839		-		99.94839		99.94839		-		99.94839
93.838.000-7	Forestal Cholguán S.A.	Chile	U.S. dollar		-		98.64273		98.64273		-		98.64114		98.64114
96.563.550-5	Inversiones Arauco Internacional Ltda.	Chile	U.S. dollar		98.01862		1.98036		99.99898		98.01862		1.98036		99.99898
79.990.550-7	Investigaciones Forestales Bioforest SpA.	Chile	U.S. 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		-		96.36917		96.36917		-		87.65386		87.65386
-	Lemu Global Limited.	United Kingdom	U.S. dollar		-		96.36917		96.36917		-		94.37831		94.37831
-	Lemu Inc.	United States	U.S. dollar		-		96.36917		96.36917		-		94.37831		94.37831
-	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		-		99.99907		99.99907		-		99.99907		99.99907
-	Novo Oeste Gestão de Ativos Florestais S.A.	Brazil	Brazilian real		-		99.99907		99.99907		-		99.99907		99.99907
76.375.371-9	Servicios Aéreos Forestales Ltda.	Chile	U.S. dollar		14.47369		85.52544		99.99913		14.47369		85.52544		99.99913
96.637.330-K	Servicios Logísticos Arauco SpA.	Chile	U.S. dollar		45.00000		54.99923		99.99923		45.00000		54.99923		99.99923
-	Tecverde Engenharia S.A.	Brazil	Brazilian real		-		89.39060		89.39060		-		89.39060		89.39060
-	Woodaffix, LLC.	United States	U.S. dollar		-		99.99911		99.99911		-		99.99911		99.99911

(1) In May 2024, Forestal Cholguán S.A. sold its subsidiary Agrícola Trupán SpA. to Maderas Arauco S.A., later Agrícola Trupán SpA. merged into Maderas Arauco S.A.

(2) In July 2024, these companies were sold, see note 14.

The companies in the table below are classified as joint operations in accordance with IFRS 11. The assets, liabilities, income and expenses are recorded in relation to the Company’s ownership percentage as specified in the contractual arrangement.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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 SOFR interest rate for 180 days plus a fixed spread of 5.20% and an adjustment of 0.42826% resulting from the replacement of LIBOR rates in dollars with SOFR rates (this according to the “Selections and Recommendations” of the “Alternative Reference Rates Committee” or ARRC), with payments every six months on June 1 and December 1 of each year.

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

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

Key management personnel compensation and redundancy benefits

	January – December
	2024		2023
	ThU.S.$		ThU.S.$
Salaries and bonuses		59,527		76,329
Per diem compensation to members of the Board of Directors		2,756		2,630
Termination benefits		2,590		4,647
Total		64,873		83,606

Related party receivables, current

		Nature of				12-31-2024		12-31-2023
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		10
Eka Chile S.A.	99.500.140-3	Joint venture	Chile	Chilean pesos	30 days		2,574		2,113
Colbún S.A.	96.505.760-9	Common stockholder	Chile	Chilean pesos	30 days		67		217
Alxar Internacional SpA.	76.879.169-4	Common controlling parent	Chile	Chilean pesos	30 days		42		42
Bioenergías Forestales SpA.	76.188.197-3	Common stockholder	Chile	Chilean pesos	30 days		1		-
Sociedad Efecto Producciones Ltda.	77.131.710-3	Director’s spouse	Chile	Chilean pesos	-		-		9
Parque Eólico Ovejera Sur SpA.	76.839.949-2	Joint venture	Chile	Chilean pesos	-		-		10
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate	Chile	U.S. dollar	03-30-2025		5,500		-
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate	Chile	U.S. dollar	30 days		146		-
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate	Chile	Chilean pesos	-		-		14
EMOAC SpA.	76.208.888-6	Common controlling parent	Chile	Chilean pesos	30 days		15		27
Softys Argentina S.A.	-	Common shareholder of the parent company	Argentina	Argentine pesos	30 days		1,812		174
TOTAL							10,159		2,616

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Related party payables, current

		Nature of				12-31-2024		12-31-2023
Name of related party	Tax ID No.	relationship	Country	Currency	Maturity	ThU.S.$		ThU.S.$
Copec S.A.	99.520.000-7	Common controlling parent	Chile	Chilean pesos	30 days		6,196		6,017
Abastible S.A.	91.806.000-6	Common controlling parent	Chile	Chilean pesos	30 days		342		319
Fundación Educacional Arauco	71.625.000-8	Parent company is founder and contributor	Chile	Chilean pesos	30 days		526		444
Bioenergías Forestales SpA.	76.188.197-3	Common stockholder	Chile	Chilean pesos	-		-		5
Red to Green S.A.	86.370.800-1	Common stockholder	Chile	Chilean pesos	-		-		1
Portaluppi, Guzmán y Bezanilla Asesorías Ltda.	78.096.080-9	Common director of cotrolling parent	Chile	Chilean pesos	30 days		14		-
Empresa Nacional de Telecomunicaciones S.A.	92.580.000-7	Common stockholder	Chile	Chilean pesos	30 days		2		7
Servicios Corporativos Sercor S.A.	96.925.430-1	Associate	Chile	Chilean pesos	-		-		14
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate	Chile	U.S. dollar	30 days		250		-
Vía Limpia SpA.	79.874.200-0	Common controlling parent	Chile	Chilean pesos	-		-		4
Copec Aviation S.A.	96.942.120-8	Joint venture of controlling parent	Chile	Chilean pesos	30 days		4		4
Falcão MS SPE S.A.	-	Associate		Brazilian real	30 days		3,007		-
Agrícola San Gerardo SpA	77.017.167-9	Joint venture	Chile	Chilean pesos	-		-		143
Agrícola Fresno SpA	77.470.229-6	Joint venture	Chile	U.S. dollar	30 days		176		-
Entel PCS Telecomunicaciones S.A.	96.806.980-2	Common stockholder	Chile	Chilean pesos	30 days		46		-
TOTAL							10,563		6,958

Related party payables, non-current

Nature of

12-31-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

Maturity

ThU.S.$

Agrícola Fresno SpA.

77.470.229-6

Joint venture

Chile

U.S. dollar

12-31-2054

4,971

Agrícola Fresno SpA.

77.470.229-6

Joint venture

Chile

U.S. dollar

12-31-2027

7,581

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Annual

13,655

15,400

TOTAL

26,207

22,981

Related party transactions

Purchases and other transactions

Nature of

Transaction

12-31-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

descriptions

ThU.S.$

Abastible S.A.

91.806.000-6

Common controlling parent

Chile

Chilean pesos

Fuel

4,007

4,033

Copec S.A.

99.520.000-7

Common controlling parent

Chile

Chilean pesos

Fuel and other

116,465

168,859

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

Chilean pesos

Transport, stowage and port services

9,962

17,008

EKA Chile S.A.

99.500.140-3

Joint venture

Chile

Chilean pesos

Sodium chlorate

47,046

50,815

Portaluppi, Guzman y Bezanilla Abogados Ltda.

78.096.080-9

Common director of cotrolling parent

Chile

Chilean pesos

Legal services

617

1,065

Entel PCS Telecomunicaciones S.A.

96.806.980-2

Common stockholder

Chile

Chilean pesos

Telephone services

656

922

Colbún S.A.

96.505.760-9

Common stockholder

Chile

Chilean pesos

Electrical Power

422

1,187

Bioenergías Forestales SpA.

76.188.197-3

Common stockholder

Chile

Chilean pesos

Electrical Power

202

Woodtech S.A.

76.724.000-7

Associate of controlling parent

Chile

Chilean pesos

Wood volumen measurement services

747

1,283

Servicios Corporativos Sercor S.A.

96.925.430-1

Associate

Chile

Chilean pesos

Other purchases

215

Vía Limpia SPA

79.874.200-0

Common controlling parent

Chile

Chilean pesos

Waste management service and other purchases

336

280

Sales and other transactions

Nature of

Transaction

12-31-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

Descriptions

ThU.S.$

Colbún S.A.

96.505.760-9

Common stockholder

Chile

Chilean pesos

Electrical power

841

430

EKA Chile S.A.

99.500.140-3

Joint venture

Chile

Chilean pesos

Electrical power

23,420

23,162

Fundación Educacional Arauco

71.625.000-8

Parent company is founder and contributor

Chile

Chilean pesos

IT and administrative services

196

226

Entel PCS Telecomunicaciones S.A.

96.806.980-2

Common stockholder

Chile

Chilean pesos

Leasings

469

405

Cartulinas CMPC SpA.

96.731.890-6

Common stockholder

Chile

Chilean pesos

Pulp

222

Softys Chile SpA.

96.529.310-8

Common stockholder

Chile

Chilean pesos

Pulp

782

Forestal Mininco SpA.

91.440.000-7

Common stockholder

Chile

Chilean pesos

Pest control services and other sales

175

441

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

Chilean pesos

Other sales

241

294

EMOAC SpA

76.208.888-6

Subsidiary of controlling parent

Chile

Chilean pesos

Electrical Power

800

2,125

Softys Argentina S.A.

Common stockholder

Argentina

Argentine pesos

Pulp

10,242

15,534

Other transactions (loans granted and capital contributions)

Nature of

Transaction

12-31-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

descriptions

ThU.S.$

Falcão MS SPE S.A.

Associate

Brazil

Reales

Capital contribution

11,395

23,553

Agrícola Fresno SpA

77.470.229-6

Joint venture

Chile

U.S. dollar

Capital contribution

12,066

1,509

Parque Eólico Ovejera Sur SpA.

76.839.949-2

Joint venture

Chile

Chilean pesos

Capital contribution

296

222

Sonae S.A.

Joint venture

Portugal

Euros

Capital contribution

26,240

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Issuance of new shares

15,400

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Capital contribution

9,230

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Borrowing capitalization

1,770

E2E SpA.

76.879.577-0

Joint venture (currently is a subsidiary)

Chile

Chilean pesos

Borrowing capitalization

5,254

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

Chilean pesos

Borrowing capitalization

5,643

Tecverde Engenharia S.A.

Subsidiary of a joint venture

Brazil

U.S. dollar

Borrowing

2,668

E2E SpA.

76.879.577-0

Joint venture (currently is a subsidiary)

Chile

Chilean pesos

Borrowing

537

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 14. INVESTMENTS IN SUBSIDIARIES

The main operations carried out as of December 31, 2024 and as of December 31, 2023 are reported below:

On July 16, 2024, Arauco transferred all the shares and interests held by Arauco in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., which own assets mainly in the state of Paraná, Brazil. The sale price, which amounted to ThU.S.$ 1,168,161, was paid on that date. Subsequently, on October 17, 2024, an additional payment was made of ThU.S.$ 4,613 due to customary price adjustments at the transaction’s closing. The total amount received by Arauco after taxes was ThU.S.$ 971,097, which generated a profit of ThU.S.$ 209,497 after taxes.

The sales of the above-mentioned subsidiaries and associate resulted in the reclassification of loss on reserve of exchange differences on translation for ThU.S.$500,102 (net of deferred taxes in the amount of ThU.S.$135,171) from other comprehensive income to the statements of profit and loss as part of the gain on sales of subsidiaries and associate in other income.

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

NOTE 15. INVESTMENTS IN ASSOCIATES

As of December 31, 2024 and 2023, these are the main movements of investments in associates to report:

In 2024, Arauco contributed capital to Falcão MS SPE S.A. for ThR$ 63,488 (equivalent to ThU.S.$ 11,395) through the subsidiary in Brazil, Arauco Participações Florestais Ltda. In the 2024, the company made capital contributions for ThR$ 116,742 (equivalent to ThU.S.$23,553).

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%
	12-31-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 35,111	ThU.S.$ 64,788

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%
	12-31-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 310	ThU.S.$ 451

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%

	12-31-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 9	ThU.S.$ 9

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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%
	12-31-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ -	ThU.S.$ 1

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%
	12-31-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 41,352	ThU.S.$ 34,558

	12-31-2024	12-31-2023
Total investments in associates accounted for using equity method	ThU.S.$ 76,782	ThU.S.$ 99,806

Summarized financial information of associates

12-31-2024	Inversiones Puerto		Serv.Corporativos		Florestal Vale do		Falcão		Consorcio Tecnológico		Genómica
	Coronel S.A.		Sercor S.A.		Corisco S.A.		MS SPE S.A.		Bioenercel S.A.		Forestal S.A.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current assets of associates		1		4,616		-		10,574		-		10		15,201
Non-current assets of associates		72,041		2,465		-		145,212		-		62		219,780
Total of associates		72,042		7,081		-		155,786		-		72		234,981

12-31-2024	Inversiones Puerto			Serv,Corporativos			Florestal Vale do		Falcão			Consorcio Tecnológico		Genómica
	Coronel S,A,			Sercor S,A,			Corisco S,A,		MS SPE S,A,			Bioenercel S,A,		Forestal S,A,		Total
	ThU,S,$			ThU,S,$			ThU,S,$		ThU,S,$			ThU,S,$		ThU,S,$		ThU,S,$
Current liabilities of associates		54			3,838			-		11,667			-		-		15,559
Non-current liabilities of associates		-			1,693			-		59,474			-		35		61,202
Equity		71,988			1,550			-		84,645			-		37		158,220
Total of associates		72,042			7,081			-		155,786			-		72		234,981

12-31-2024
Income		-			5,158			-		10,620			-		-		15,778
Other income / expenses		(57,152	)		(5,614	)		-		(849	)		-		-		(63,615	)
Net profit or loss (continuing operations) of associates		(57,152	)		(456	)		-		9,771			-		-		(47,837	)
Other comprehensive income		889			-			-		-			-		-		889
Comprehensive income		(56,263	)		(456	)		-		9,771			-		-		(46,948	)
Dividends received		-			-			-		-			-		-		-

12-31-2023	Inversiones Puerto		Serv.Corporativos		Florestal Vale do		Falcão		Consorcio Tecnológico		Genómica
	Coronel S.A.		Sercor S.A.		Corisco S.A.		MS SPE S.A.		Bioenercel S.A.		Forestal S.A.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current assets of associates		1		7,449		4,841		11,746		-		10		24,047
Non-current assets of associates		131,395		2,188		77,284		169,486		4		62		380,419
Total of associates		131,396		9,637		82,125		181,232		4		72		404,466

12-31-2023	Inversiones Puerto		Serv.Corporativos			Florestal Vale do			Falcão		Consorcio Tecnológico		Genómica
	Coronel S.A.		Sercor S.A.			Corisco S.A.			MS SPE S.A.		Bioenercel S.A.		Forestal S.A.		Total
	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current liabilities of associates		54		6,021			1,743			4,238		-		-		12,056
Non-current liabilities of associates		-		1,362			20,990			106,468		3		35		128,858
Equity		131,342		2,254			59,392			70,526		1		37		263,552
Total of associates		131,396		9,637			82,125			181,232		4		72		404,466

12-31-2023
Income		-		4,996			10,533			-		-		-		15,529
Other income / expenses		2,095		(4,360	)		(4,476	)		238		-		-		(6,503	)
Net profit or loss (continuing operations) of associates		2,095		636			6,057			238		-		-		9,026
Other comprehensive income		-		-			-			-		-		-		-
Comprehensive income		2,095		636			6,057			238		-		-		9,026
Dividends received		-		-			2,187			-		-		-		2,187

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Reconciliation of investment in associates and joint ventures

	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance as of January 1		423,611			365,671
Changes
Investment in associates, additions (1)		11,395			23,553
Investment in joint ventures, additions (2)		38,607			55,885
Share of profit (loss) in investment in associates		(24,075	)		3,990
Share of profit (loss) in investment in joint ventures		(23,142	)		3,719
Dividends received, Investments in associates		(3,000	)		(3,687	)
Increase (decrease) in foreign exchange currency on translation of associates and joint ventures		(22,658	)		9,467
Reclassification from (to) assets held for sale (3)		-			(29,102	)
Other increase (decrease) in investment in associates and joint ventures		5,873			(5,885	)
Total changes		(17,000	)		57,940
Closing balance		406,611			423,611

Year 2024

(1) Arauco Participações Florestais Ltda. made a capital contribution to Falcão MS SPE S.A., for ThR$ 63,488 that is equivalent to ThU.S.$ 11,395 for 63,488,424 shares.

(2) In 2024, Forestal Arauco S.A., made contributions of non-monetary assets to Agrícola Fresno SpA amounting to ThU.S.$ 12,066.

-In 2024, Forestal Arauco S.A., made capital contributions to the following companies: Parque Eólico Girasol Spa., Parque Eólico Las Dalias SpA., Parque Eólico Las Fresias SpA., Parque Eólico Margaritas SpA., Parque Eólico Los Cardos SpA., Parque Eólico Las Calas SpA., Parque Eólico Tulipanes SpA., Parque Eólico Hortensias SpA., Parque Eólico Lavanda SpA., y Parque Eólico Jazmin SpA., for Th$ 500 that is equivalent to ThU.S.$ 0.5 for 500 shares in each entity.

-In 2024, Arauco Bioenergía SpA., made capital contributions to Parque Eólico Ovejera Sur SpA.amounting to ThCLP$ 285,000 equivalents to ThU.S.$ 296, corresponding to 285 shares.

-In 2024, Arauco Wood Limited, made capital contributions to Sonae Arauco S.A. for Th€ 25,000 that is equivalent to ThU.S.$ 26,240 for 714,286 shares.

Year 2023

(1) Arauco Participações Florestais Ltda. made a capital contribution to Falcão MS SPE S.A., for ThR$ 116,742 that is equivalent to ThU.S.$ 23,553 for 116,741,636 shares.

(2) On January 9, 2023 Maderas Arauco S.A. made a capital contribution to E2E SpA., through the capitalization of loans maintained with this entity for ThCLP$ 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., made a non-monetary assets contribution to Agrícola Fresno SpA for ThU.S.$ 1,509, in March 2023. 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 share in Agrícola Fresno SpA.

-Arauco Bioenergía SpA., made capital contributions to the company Parque Eólico Ovejera Sur SpA. for ThCLP$ 185,000 equivalents to ThU.S.$ 222 corresponding to 185 shares, during the year 2023.

-Arauco Venture Limited., acquired 51.1278% of TreeCo, Inc. shares, for a total of ThU.S.$ 48,900, during the year 2023, which were carried out based on the committed agreements. As of December 31, 2024 the contribution paid was ThU.S.$ 11,000, through the capitalization of loan receivable for ThU.S.$ 1,770 and cash contributions for ThU.S.$ 9.230.

(3) Arauco Forest Brasil S.A. investment on Florestal Vale do Corisco S.A.

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Carrying amount of investments in associates accounted for using equity method		76,782		99,806
Carrying amount of investments in joint ventures accounted for using equity method		329,829		323,805
Total investment accounted for using equity method		406,611		423,611

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 16. INTERESTS IN JOINT ARRANGEMENTS

Investments and contributions made

The main operations carried out as of December 31, 2024 and December 31, 2023 are reported below:

During 2024, Arauco made contributions of non-monetary assets to Agrícola Fresno SpA for a total amount of ThU.S.$ 12,066 through the subsidiary Forestal Arauco S.A.

On December 18, 2024, Arauco made a capital contribution to the company Sonae Arauco S.A. for Th€ 25,000 (equivalent to ThU.S.$ 24,240 on the payment date), through its subsidiary in the United Kingdom, Arauco Wood Limited, maintaining 50% of control as a joint agreement.

On March 12, 2024, Eufores S.A. and Forestal Cono Sur S.A. (entities classified as Arauco’s joint operation in Uruguay), acquired all shares and social rights of four companies owned by Global Timber Spain SLU and Global Timber International LLC. The acquired companies are Taurion S.A., Taurion Asociación Agraria de Responsabilidad Limitada, Monte Fresnos S.A. and Monte Fresnos Asociación Agraria de Responsabilidad Limitada. Collectively, these companies own approximately 32,000 hectares in Uruguay, of which approximately 19,000 hectares are planted with eucalyptus trees. The price agreed for this operation amounted to ThU.S.$ 80,287 and the amount paid during the period was ThU.S.$ 72,038.

On March 6, 2024, Arauco made a capital contribution to Eufores S.A., a company that is part of the joint operation in Uruguay, for a total of ThU.S.$ 60,000, through its subsidiary Inversiones Arauco Internacional Ltda., maintaining 50% of control as a joint agreement. These funds were invested in the acquisition of the above-mentioned companies. As of December 31, 2023, Arauco did not make contributions to the companies part of the joint operation.

On September 13, 2023, Arauco, acquired 51.1278% of the company TreeCo, Inc. in the United States, through its United Kingdom investment company Arauco Ventures Ltd. This company is engaged in research aimed at development and studies focusing on the development and commercial application of genome editing, biotechnology and forest genetics technologies and/or knowledge, including in vitro and ex vitro plant propagation, tissue culture and clone delivery, plant establishment, wood property analysis and development or sale of clones, seedlings and trees for application to forestry. The price agreed for the shares representing the aforementioned shareholding percent is ThU.S.$ 48,900, payable based on the committed agreements. At the closing of these financial statements the amount paid was ThU.S.$ 12,745. This operation generated a goodwill of ThU.S.$ 39,577 that is presented in the financial statement as part of the investment.

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

The investments in Uruguay qualify as a joint operation, and Arauco holds a 50% interest in these investments. In relation to “other rights and contractual conditions”, the joint operation has the primary objective of providing the parties an output. As established in the “Pulp Supply Agreement”, both Arauco and its partner have the obligation to acquire 100% of the yearly pulp produced by the joint operation. Arauco has recognized the assets, liabilities, income and expenses associated with its interest ownership, pursuant to IFRS 11.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

Celulosa y Energía Punta Pereira S.A.	12-31-2024					12-31-2023
(Uruguay)	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		406,706			41,608		408,066			44,798
Non-current		1,915,522			125,452		1,948,800			133,661
Equity		-			2,155,168		-			2,178,407
Total joint arrangement		2,322,228			2,322,228		2,356,866			2,356,866
Investment		1,077,584					1,089,204

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		1,017,324					941,429
Expenses		(668,473	)				(664,772	)
Joint arrangement net income (loss)		348,851					276,657

Forestal Cono Sur S.A. (consolidated)	12-31-2024					12-31-2023
	Assets			Liabilities		Assets		Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$
Current		55,490			5,971		51,173		5,911
Non-current		157,848			8,584		150,619		3,931
Equity		-			198,783		-		191,950
Total joint arrangement		213,338			213,338		201,792		201,792
Investment		99,392					95,975

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		8,061					8,775
Expenses		(1,226	)				3,632
Joint arrangement net income (loss)		6,835					12,407

Eufores S.A. (consolidated)		12-31-2024					12-31-2023
		Assets			Liabilities		Assets		Liabilities
		ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$
Current		176,029			248,064		150,509		223,974
Non-current		1,151,591			144,326		965,695		116,226
Equity		-			935,230		-		776,004
Total joint arrangement		1,327,620			1,327,620		1,116,204		1,116,204
Investment		467,615					388,002

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Income	321,339		288,378
Expenses	(280,007	)	(216,764	)
Joint arrangement net income (loss)	41,332		71,614

Zona Franca Punta Pereira S.A.	12-31-2024					12-31-2023
(Uruguay)	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		8,407			88,462		6,842			90,235
Non-current		419,279			-		425,634			-
Equity		-			339,224		-			342,241
Total joint arrangement		427,686			427,686		432,476			432,476
Investment		169,612					171,121

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		21,875					21,172
Expenses		(24,892	)				(24,139	)
Joint arrangement net income (loss)		(3,017	)				(2,967	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

The 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:

Eka Chile S.A.	12-31-2024					12-31-2023
	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		14,277			3,643		16,898			4,397
Non-current		41,071			5,227		39,854			5,142
Equity		-			46,478		-			47,213
Total joint arrangement		55,348			55,348		56,752			56,752
Investment		23,239					23,607

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		51,599					50,825
Expenses		(46,334	)				(47,613	)
Joint arrangement net income (loss)		5,265					3,212
Other comprehensive income		-					-
Comprehensive income		5,265					3,212
Dividends		3,000					1,500

Sonae Arauco S.A.	12-31-2024					12-31-2023
	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		254,698			244,912		274,085			202,434
Non-current		701,355			288,452		705,465			346,471
Equity		-			422,689		-			430,645
Total joint arrangement		956,053			956,053		979,550			979,550
Net assets		192,764					194,762
Net asset adjustment (goodwill)		18,581					20,561
Investment		211,345					215,323

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		925,346					1,018,422
Expenses		(973,381	)				(1,005,984	)
Joint arrangement net income (loss)		(48,035	)				12,438
Other comprehensive income		-					-
Comprehensive income		(48,035	)				12,438
Dividends		-					-

Agrícola El Paque SpA.	12-31-2024					12-31-2023
	Assets			Liabilities		Assets		Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$
Current		318			152		245		77
Non-current		4,323			602		4,240		225
Equity		-			3,887		-		4,183
Total joint arrangement		4,641			4,641		4,485		4,485
Investment		1,944					2,091

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		198					-
Expenses		(105	)				37
Joint arrangement net income (loss)		93					37
Other comprehensive income		-					-
Comprehensive income		93					37
Dividends		-					-

Parque Eólico Ovejera del Sur SpA.	12-31-2024					12-31-2023
	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		231			545		301			95
Non-current		2,806			192		3,103			-
Equity		-			2,300		-			3,309
Total joint arrangement		3,037			3,037		3,404			3,404
Investment		1,150					1,655

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		-					-
Expenses		(962	)				(63	)
Joint arrangement net income (loss)		(962	)				(63	)
Other comprehensive income		-					-
Comprehensive income		(962	)				(63	)
Dividends		-					-

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

E2E SpA.	12-31-2024				02-28-2023
	Assets		Liabilities		Assets			Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$
Current		-		-		7,693			20,282
Non-current		-		-		21,411			2,520
Equity		-		-		-			6,302
Total joint arrangement		-		-		29,104			29,104
Investment		-				3,151

		12-31-2024				02-28-2023
		ThU.S.$				ThU.S.$
Income		-				224
Expenses		-				(1,244	)
Joint arrangement net income (loss)		-				(1,020	)
Other comprehensive income		-				-
Comprehensive income		-				(1,020	)
Dividends		-				-

Agrícola San Gerardo SpA.	12-31-2024					12-31-2023
	Assets			Liabilities		Assets		Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$
Current		1,036			126		765		2,225
Non-current		4,391			1,862		4,981		-
Equity		-			3,439		-		3,521
Total joint arrangement		5,427			5,427		5,746		5,746
Investment		1,720					1,761

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		757					-
Expenses		(514	)				31
Joint arrangement net income (loss)		243					31
Other comprehensive income		-					-
Comprehensive income		243					31
Dividends		-					-

Agrícola Fresno SpA	12-31-2024					12-31-2023
	Assets			Liabilities		Assets			Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Current		2,763			17,987		2,939			7,558
Non-current		138,270			3,757		96,303			1,159
Equity		-			119,289		-			90,525
Total joint arrangement		141,033			141,033		99,242			99,242
Investment		59,645					45,263

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		155					-
Expenses		(1,492	)				(1,198	)
Joint arrangement net income (loss)		(1,337	)				(1,198	)
Other comprehensive income		-					-
Comprehensive income		(1,337	)				(1,198	)
Dividends		-					-

TreeCo Inc.	12-31-2024					12-31-2023
	Assets			Liabilities		Assets		Liabilities
	ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$
Current		2,485			202		2,823		514
Non-current		14,434			-		15,593		-
Equity		-			16,717		-		17,902
Total joint arrangement		16,919			16,919		18,416		18,416
Investment on equity		8,547					9,153		-
Goodwill		39,576					39,747
		48,123					48,900

		12-31-2024					12-31-2023
		ThU.S.$					ThU.S.$
Income		-					-
Expenses		(1,519	)				-
Joint arrangement net income (loss)		(1,519	)				-
Other comprehensive income		-					-
Comprehensive income		(1,519	)				-
Dividends		-					-

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 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 in Chile, which was recognized into impairment provisions of individual assets for which reversals were made in 2023, leaving a balance of ThU.S.$ 3,639 as of December 31, 2024.

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 celulose pulp, which to date is ThU.S.$ 126,921. (ThU.S.$ 127,260 as of December 31, 2023).

The assumptions 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.

On September 12, 2023, the decision to suspend the manufacturing pulp process at the Licancel mill (Chile) was informed. In 2023, an impairment provision was recognized for a total of ThU.S.$ 61,039, which includes Property, plant and equipment and Inventory of spare parts. As of December 31, 2024, the impairment provision for Licancel mill remains.

In the second quarter of 2023, an impairment provision of ThU.S.$ 6,037 was recognized corresponding to the closure of the Aserraderos Horcones II in Chile, which is part of the wood product segment, due to supply issues, rising costs and decreased availability of raw materials.

In 2024, an impairment provision of ThU.S.$ 7,272 was recognized corresponding to the indefinite suspension of operations of the Aserradero El Colorado in Chile, which is part of the wood product segment.

In the second half of 2024, an impairment provision of ThU.S.$ 2,027 was recognized corresponding to Properties, plant and equipment associated with Line MDF1 of the Trupán-Cholguán complex, which is part of the wood product segment, it is developing a project to modernize and renovate parts of the existing MDF1 Line, as well as the incorporation of new processes and equipment for the manufacture of OSB (Oriented Strand Board) products.

In 2024, an impairment provision was recognized for the MDP line at the Pien mill in Brazil for ThU.S.$ 7,226, an amount that includes ThU.S.$ 1,359 for impairment of the associated goodwill mentioned later in this note.

As of December 31, 2024, impairment provisions associated with sales and recoveries from property, plant and equipment of United States subsidiary were reversed for a total of ThU.S.$ 13,816 (ThU.S.$ 7,113 as of December 31, 2023).

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

Changes in CGUs impairment provision	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance		401,527			324,350
Impairment loss recognized in profit or loss		15,684			80,146
Reversal of impairment loss recognized in profit or loss		(38,087	)		(7,899	)
Increase (decrease) in foreign exchange		(13,620	)		4,930
Closing balance		365,504			401,527

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance		31,933			33,324
Impairment loss recognized in profit or loss		2,840			8,600
Reverse of impairment recognized loss in profit or loss		(2,493	)		(10,197	)
Increase (decrease) in foreign exchange		(702	)		206
Closing balance		31,578			31,933

Goodwill

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

At the date of these consolidated financial statements, the balance of goodwill is ThU.S.$ 51,325 (ThU.S.$ 55,891 on December 31, 2023), as shown below:

	12-31-2024		12-31-2023
Goodwill	ThU.S.$		ThU.S.$
Arauco Canada Ltd. (Flakeboard Company Ltd)		40,554		40,726
Arauco do Brasil S.A. (Pien mill)		10,039		14,433
Arauco North America, Inc. (Prime-Line, Inc.)		732		732
Closing balance		51,325		55,891

	12-31-2024			12-31-2023
Goodwill movement	ThU.S.$			ThU.S.$
Opening balance at January 1		55,891			54,800
Impairment		(1,359	)		-
Increase (decrease) in foreign exchange		(3,207	)		1,091
Closing balance		51,325			55,891

Of the total of goodwill, ThU.S.$ 40,554 (ThU.S.$ 40,726 as of December 31, 2023) were generated by the acquisition of “Flakeboard” (currently Arauco Canada Ltd.), a company that, directly and/or through its subsidiaries, possesses and operates 7 panel plants, for which Arauco acquired and paid, on September 24, 2012, the price of ThU.S.$ 242,502 for the 100% interest ownership. The remaining balance of ThU.S.$ 732 corresponds to the acquisition of Prime-Line Inc., on September 1, 2019, for which Arauco North America Inc, a subsidiary of Arauco Canada Ltd. paid ThU.S.$ 18,880 for all the shares of said company.

The recoverable amount for Flakeboard’s cash generating unit was determined in the annual closing based on the calculations of its value in use, and this calculation was made using cash flow projections covering a 7-year term, a period time, which is considered to represent the cyclicality of the business performance, applying a nominal discount rate of 7,5% (7% as of December 31, 2023), which reflects current market assessments for the wood products segment in North America.

Due to the investment in panel plant in Pien, Brazil, as of December 31, 2024, there is a goodwill balance of ThU.S.$ 10,039, associated with the cash-generating unit of the MDF line. As of December 31, 2023, there was a goodwill balance of ThU.S.$ 14,433, associated with the cash-generating units of MDF and MDP lines.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

As of December 31, 2024 and 2023, the carrying value recognized in the financial statements of Arauco Canada Ltd. and Arauco Do Brasil S.A. for the group of cash-generating units did not exceed their recoverable value, except for ThU.S.$ 1,359 of impairment of goodwill and ThU.S.$ 5,867 of impairment of assets associated exclusively with the MDP line of cash-generating unit of the Pien mill.

NOTE 18. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES

The contingent liabilities for outstanding litigations are as follows:

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

On August 13, 2018, the Constitución’s Truck Owners Trade Association (in Spanish, Asociación Gremial de Dueños de Camiones de Constitución or “ASODUCAM”) filed a claim – seeking the specific performance of a contract and damages – against Forestal Arauco S.A., Celulosa Arauco y Constitución S.A. and Maderas Arauco S.A.

The complaint is based on assumptions 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 SpA., in favor of the other two defendants, Celulosa Arauco and Constitución S.A. and Maderas Arauco S.A.

On February 5, 2024, Celulosa Arauco y Constitución S.A. and Maderas Arauco S.A. formally objected to a transaction exception and, in subsidy, answered the lawsuit. For its part, Forestal Arauco S.A. directly answered the lawsuit presented by ASODUCAM.

On April 18, 2024 was held a settlement hearing, which was ultimately declared unsuccessful.

The issuance of the resolution that receives the case on trial is pending, as well as the resolution of various incidents and appeals filed by the parties.

Considering that the position of the defendant companies is supported by solid legal arguments, there is a reasonable margin of obtaining a favorable result and that is why, as of December 31, 2024, Arauco has not established any provision for this contingency.

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Upon conclusion of the discussion period, on September 2, 2022, the company filed a motion for abandonment of proceedings, the resolution of which is still is pending.

Considering that the Company's position is supported by solid legal arguments, there is a reasonable margin of obtaining a favorable result for the Company and that is why, as of December 31, 2024, Arauco has not established any provision for 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.

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 was under administratively and judicially discussion by the Company. On November 8, 2006, the V Chamber of the National Appeals Court for Adversarial Administrative and Federal Matters issued a resolution by which it admitted a precautionary measure requested by the Company, 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 ThU.S.$ 23,821 for guaranteed export duties between 2007-2015, which appears under long-term provisions. In the same file of judicial challenge of Note 145/05, the Company included a request for a total amount of ThU.S.$ 6,555, plus interest 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 was 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. In its ruling issued on June 13, 2024, the Supreme Court declared both motions inadmissible, thus ratifying the legality of Note 145/05. The Company’s legal advisors are of the opinion that since the Enforcement Authority did not establish that Arauco was not entitled to the exemption (neither in Note 145/05, nor in any subsequent administrative act), and to the extent that the committed forestry projects are declared completed, the sums paid as precautionary export duties should be returned to the Company, not based on the illegality of Note 145/05, but rather on the effective enjoyment of the received benefits.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

On the other hand, Arauco Argentina S.A. currently has a guarantee at an amount of $ 435,952,315 Argentine pesos (ThU.S.$ 423 as of December 31, 2024) in favor of the Secretary of Agriculture, Livestock and Fishing.

Moreover, the Company has submitted annual forestry plans covering the period from 2007 to 2022 for its plantations located in the Provinces of Misiones and Buenos Aires.

On March 25, 2019, the Secretary of Agriculture, Livestock and Fisheries issued Resolution No. 2019-55-APN-SECAGYP#MPYT, approving the annual forestry plan for the year 2007. Additionally, said agency, through Resolution No. 2019-114-APN-SECAGYP#MPYT, dated June 12, 2019, approved the 2009 annual forestry plan and, through resolution No. 2019-228-APN-SECAGYP#MPYT, dated November 29, 2019, approved the 2008 annual forestry plan. For this reason, Arauco Argentina S.A. will be able to compute the income tax exemption corresponding to the forest appraisal on the plantations harvested from the land included in those plans as from fiscal year 2019.

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 Brasil S.A.

On July 20, 2015, Arauco do Brasil was notified of the first administrative level resolution, which partially confirmed the sanction. Against this resolution, a voluntary appeal to revoke the Notice of Infringement was filed before the Administrative Council of Fiscal Resources of Brazil (in Portuguese, Conselho Administrativo de Recursos Fiscais or “CARF”), which is the second level.

On May 16, 2017, the CARF issued its decision on the matter, and confirmed certain arguments presented by the Company regarding the premium, although it decided preserving additional charges. On September 27, 2018, Arauco do Brasil S.A was notified of the CARF’s decision, and the Company then filed a motion for clarification to clarify certain elements of the CARF’s decision. On January 25, 2019, the CARF ruled that there were no clarifications or omissions to be made and, consequently, set a deadline to file the last appeal within the administrative scope (“Special Appeal”). This Special Appeal was lodged before the CARF High Chamber of Fiscal Resources (in Portuguese, Camara Superior de Recursos Fiscais or “CSRF”) on February 11, 2019, reiterating the allegations put forth by the Company’s defense regarding the issues and charges that remained outstanding in the process.

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:

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

I – The administrative level fine(deductibility of interest and isolated fine of 50%) whose estimated amount of R$34.5 million (equivalent to ThU.S.$ 5,586 as of December 31, 2024). 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$3.7 million (ThU.S.$ 595 as of December 31, 2024) and (b) payment of 70% of fiscal losses, totaling R$8.6 million (ThU.S.$ 1,388 as of December 31, 2024).

Subsequently, Arauco do Brasil performed the payment in cash and also the offset with tax losses. Notwithstanding the foregoing, the Federal Reserve of Brazil (Brazilian tax service) must confirm Arauco do Brasil's compliance with the program, thus closing the part of the case which was being reviewed before an administrative venue.

II – Part of the case that remained in a judicial venue (contractual expenses deducted in the purchase of Tafisa Brasil; interest and legal expenses on debts in the amnesty program; Imposto de Renda Pessoa Jurídica, or “IRPJ”, and lower Contribuição Social sobre o Lucro Líquido, or “CSLL” whose updated estimated amount is R$ 42,167,507 (ThU.S.$ 6,826 as of December 31, 2024). Arauco do Brasil filed the Tax Debt Annulment Action.

On March 9, 2023, the trial court issued a judgment that was partially favorable to Arauco do Brasil, upholding the aforementioned claims, and thus setting aside the portion of the debt corresponding to R$ 26,554,677 (ThU.S.$ 4,299 as of December 31, 2024). However, the judgment rejected the claim related to interest and legal expenses on debts under the amnesty program, which estimated amount is R$ 15,612,831 (ThU.S.$ 2,528 as of December 31, 2024).

On May 29, 2023, the Federal Reserve filed an appeal seeking the revocation of the judgment in the section that was favorable to Arauco, while, on June 26, 2023, Arauco also filed an appeal, but seeking the ratification of the judgment regarding interest and legal expenses on debts in the amnesty program. Arauco filed its counter-arguments to the Appeal of the National Treasury and is currently awaiting the filing of counter-arguments by the National Treasury to subsequently send the case to the Court for an appellate judgment.

After the submission of counter-arguments by both parties, on July 18, 2023 the case was referred to the court for an appellate trial. The case is currently awaiting trial in court.

On September 27, 2024 the case was included in the agenda for judgment on October 15, 2024. The trial of the case was suspended due to a request for review by one of the judges of the court.

On November 11, 2024, Arauco's appeal was denied, the Federal Reserve's appeal was granted and the court of second instance restored the total amount disputed in the annulment lawsuit, the estimated amount of which is 46,237,171 reais (ThU.S.$ 7,485 as of December 31, 2024). The deadline for filing an appeal against the second instance decision is currently open.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

2) In 2013, a service provider (Emontcontrau) 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.$ 13,599 as of December 31, 2024) 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.

After the judgment, we were summoned and on March 8, 2022 we filed an Appeal, and the opposing party was summoned to present arguments on our appeal and filed the petition on April 11, 2022, also appealing the judgment.

In April 2023, a favorable ruling was handed down in our Appeal and we succeeded in annulling the judgment so that the case could return to its origin. This annulment ruling will also affect the expert evidence, which will have to be produced again. As a result, the provision of R$ 42,945,528 (ThU.S.$ 6,952 as of December 31, 2024) was fully reversed.

In May 2023, the contractor company filed a Motion for Clarification presenting alleged omissions, in an attempt to preserve the decision or at least the evidence already produced. Review of these remedies is currently pending. In July 2023, the appeal was dismissed.

In August 2023, the contractor filed a Special Appeal before the Higher Court of Justice, in an attempt to reverse the decision in favor of Arauco.

In October 2023, the special appeal was rejected. In November 2023, the contractor firm lodged an appeal, seeking admissibility, but in April 2024 said appeal was not admitted.

In May 2024, opposing counsel filed a new appeal seeking a review of their main appeal by the Superior Court of Law. This appeal is still pending.

A ruling on the appeal filed by opposing counsel is still pending.

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.$ 4,145 as of December 31, 2024), from loans granted by Masisa S.A. (Chile); (ii) the tax loss in the total amount of $ 275,986,671 Mexican pesos (ThU.S.$ 13,430 as of December 31, 2024); (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.$ 149 as of December 31, 2024); (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.$ 16,661 as of December 31, 2024), $ 66,250,020 (ThU.S.$ 3,224 as of December 31, 2024), $ 46,389,980 (ThU.S.$ 2,257 as of December 31, 2024) and $ 11,457,000 Mexican pesos (ThU.S.$ 558 as of December 31, 2024), 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 $ 445,712,085 Mexican pesos (ThU.S.$ 21,689 as of December 31, 2024).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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 was 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.

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 December 31, 2024 and 2023 are as follows:

	12-31-2024		12-31-2023
Classes of Provisions	ThU.S.$		ThU.S.$
Short-term provisions		1,837		3,905
Provisions for litigations		499		440
Other short-term provisions		1,338		3,465
Long-term provisions, non-Current		33,121		28,651
Provisions for litigations		29,265		28,651
Other long-term provisions		3,856		-
Total provisions		34,958		32,556

	12-31-2024
Movements in provisions	Litigations (*)			Other Provisions (**)			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		29,091			3,465			32,556
Changes in provisions
Additional provisions		3,763			4,667			8,430
Used provisions		(1,834	)		(2,310	)		(4,144	)
Increase (decrease) in foreign exchange		(1,261	)		(628	)		(1,889	)
Other increases (decreases)		5			-			5
Total changes		673			1,729			2,402
Closing balance		29,764			5,194			34,958

(*) The increase in litigations is mainly made up of ThU.S.$ 3,673 by subsidiaries in Argentina and Brazil for civil and labor lawsuits.

(**) The increase in Other Provisions corresponds mainly to the deferred subsidy of one subsidiary in Brazil. In addition, the decrease in Other Provisions corresponds mainly to the reversal of the provision for dismantling of Line 1 of Arauco mill.

	12-31-2023
Movements in provisions	Litigations (*)			Other Provisions (**)			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		39,668			10,551			50,219
Changes in provisions
Additional provisions		27,732			-			27,732
Increase due to business combination		87			-			87
Used provisions		(1,743	)		(5,440	)		(7,183	)
Reversal of unused provision		(32,276	)		(1,676	)		(33,952	)
Increase (decrease) in foreign exchange		(3,524	)		30			(3,494	)
Other increases (decreases)		(31	)		-			(31	)
Decrease through transfer to liabilities included in disposal groups classified as held for sale		(822	)		-			(822	)
Total changes		(10,577	)		(7,086	)		(17,663	)
Closing balance		29,091			3,465			32,556

(*) The increase in litigations is mainly made up of ThU.S.$ 25,098 (subsidiaries in Brazil) for civil and labor lawsuits. In addition, the decrease legal litigations correspond mainly to the reversal of the provision for a lawsuit with a supplier in the Arauco do Brasil S.A.

(**) The decrease in Other Provisions corresponds mainly to the reversal of the provision for dismantling of Line 1 of Arauco mill and the decrease in the balance of the provision for negative equity of E2E SpA.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 19. INTANGIBLE ASSETS

	12-31-2024			12-31-2023
Classes of intangible assets, net	ThU.S.$			ThU.S.$
Intangible assets, net		55,980			66,431
Intangible assets under development (IT programs)		1,025			2,793
Computer software		17,866			21,234
Water rights		4,338			4,999
Customer relationship		14,367			19,457
Other identifiable intangible assets		18,384			17,948
Classes of intangible assets, gross		230,158			232,484
Intangible assets under development (IT programs)		1,025			2,793
Computer software		127,944			124,794
Water rights		4,338			4,999
Customer relationship		73,888			75,337
Other identifiable intangible assets		22,963			24,561
Classes of accumulated amortization and impairment
Total accumulated amortization and impairment		(174,178	)		(166,053	)
Accumulated amortization and impairment, intangible assets		(174,178	)		(166,053	)
Computer software		(110,078	)		(103,560	)
Customer relationship		(59,521	)		(55,880	)
Other identifiable intangible assets		(4,579	)		(6,613	)

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

	12-31-2024
Reconciliation of intangible assets	Intangible assets under development			Computer software			Water rights			Customer relationship			Others			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		2,793			21,234			4,999			19,457			17,948			66,431
Changes
Additions		1,099			3,298			-			-			1,422			5,819
Disposals		(7	)		(108	)		(661	)		-			-			(776	)
Amortization		-			(8,234	)		-			(4,925	)		(550	)		(13,709	)
Increase (decrease) in foreign exchange		-			(440	)		-			(165	)		(436	)		(1,041	)
Increase (decrease) though transfers		(670	)		-			-			-			-			(670	)
Other increases (decreases)		(2,190	)		2,116			-			-			-			(74	)
Changes total		(1,768	)		(3,368	)		(661	)		(5,090	)		436			(10,451	)
Closing balance		1,025			17,866			4,338			14,367			18,384			55,980

	12-31-2023
Reconciliation of intangible assets	Intangible assets under development			Computer software			Water rights			Customer relationship			Others			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		5,076			22,323			5,185			24,015			16,840			73,439
Changes
Additions		2,273			4,035			-			-			744			7,052
Additions through business combination		-			190			-			-			1,140			1,330
Disposals		(356	)		(880	)		(186	)		-			-			(1,422	)
Amortization		-			(8,726	)		-			(4,681	)		(659	)		(14,066	)
Impairment los recognised in profit or loss		-			(195	)		-			-			-			(195	)
Increase (decrease) in foreign exchange		-			312			-			124			(117	)		319
Other increases (decreases)		(4,200	)		4,290			-			(1	)		-			89
Decrease through classified as held for sale		-			(115	)		-			-			-			(115	)
Changes total		(2,283	)		(1,089	)		(186	)		(4,558	)		1,108			(7,008	)
Closing balance		2,793			21,234			4,999			19,457			17,948			66,431

	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 consolidated statements of profit or loss under the administrative expenses line item.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 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 December 31, 2024, Arauco had a total surface of 1.67 million hectares of which 935 thousand hectares are used for forestry planting, 482 thousand hectares are native forest, 112 thousand hectares are used for other purposes and 137 thousand hectares not yet planted. Lands corresponding to native forest, lands used for other purposes and lands not yet planted are presented in property, plant and equipment, Forest plantations are presented in Biological Assets.

For the year ended as of December 31, 2024, the production volume of logs totaled 19.6 million m3 (19.7 million m3 as of December 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 consolidated statements of profit or loss under the line item other income per function, which generated an impact for the year ended as of December 31, 2024 amounted to ThU.S.$ 159,021 (ThU.S.$ 264,477 as of December 31, 2023). The appraisal of biological assets resulted in a greater cost of the lumber sold in comparison to the real incurred cost, which is presented included in the cost of sales which as of December 31, 2024 amounted to ThU.S.$ 290,470 (ThU.S.$ 344,991 as of December 31, 2023).

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

- The discount rates used are 6.4% in Chile, 8.3% Brazil, 22.6% 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 the sensitivity to changes in fair value of biological assets considering variations in significant assumptions considered in calculating the fair value of the assets:

		ThU.S.$
Discount rate	0.5		(111,711	)
	-0.5		119,337
Margins (%)	10		425,449
	-10		(425,449	)

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

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

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

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

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

Detail of biological assets pledged as security

As of December 31, 2024, there were no forestry plantations pledged as security.

Detail of biological assets with restricted ownership

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

No significant government grants have been received.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Current and non-current biological assets

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

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Current		315,500		370,957
Non-current		2,747,894		2,651,622
Total		3,063,394		3,022,579

Reconciliation of carrying amount of biological assets

	12-31-2024
Movement	Current			Non-current			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		370,957			2,651,622			3,022,579
Changes in real incurred cost		16,970			149,293			166,263
Additions through acquisition		-			380,414			380,414
Increases (decreases) due to business combination		-			21,880			21,880
Sales		(27	)		(6,481	)		(6,508	)
Harvest		(140,381	)		-			(140,381	)
Increases (decreases) in foreign exchange		(4,268	)		(58,983	)		(63,251	)
Loss of forest due to fires		-			(25,633	)		(25,633	)
Transfers from non-current to current		161,646			(161,646	)		-
Other increases (decreases)		-			(258	)		(258	)
Changes in fair value		(72,427	)		(53,021	)		(125,448	)
Gain (losses) arising from changes in fair value minus sale costs		-			117,316			117,316
Sales		-			(7,946	)		(7,946	)
Harvest		(241,617	)		-			(241,617	)
Increases (decreases) in foreign exchange		(6,739	)		13,219			6,480
Loss of forest due to fires		-			715			715
Transfers from non-current to current		175,929			(175,929	)		-
Other increases (decreases)		-			(396	)		(396	)
Total changes		(55,457	)		96,272			40,815
Closing balance		315,500			2,747,894			3,063,394

	12-31-2023
Movement	Current			Non-current			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		330,435			2,864,935			3,195,370
Changes in real incurred cost		910			158,489			159,399
Additions through acquisition		1,570			416,792			418,362
Sales		(168	)		(6,167	)		(6,335	)
Harvest		(147,901	)		-			(147,901	)
Increases (decreases) in foreign exchange		279			14,638			14,917
Loss of forest due to fires		(1,652	)		(63,353	)		(65,005	)
Transfers to non-current assets held for sale		(11,022	)		(43,939	)		(54,961	)
Transfers from non-current to current		159,804			(159,804	)		-
Other increases (decreases)		-			322			322
Changes in fair value		39,612			(371,802	)		(332,190	)
Gain (losses) arising from changes in fair value minus sale costs		-			264,477			264,477
Sales		(51	)		(5,736	)		(5,787	)
Harvest		(322,232	)		-			(322,232	)
Increases (decreases) in foreign exchange		(4,311	)		5,401			1,090
Loss of forest due to fires		-			(43,721	)		(43,721	)
Transfers to non-current assets held for sale		(48,148	)		(177,869	)		(226,017	)
Transfers from non-current to current		414,354			(414,354	)		-
Total changes		40,522			(213,313	)		(172,791	)
Closing balance		370,957			2,651,622			3,022,579

Regarding the fires that occurred in Chile in early 2023 in the regions of Maule, Ñuble, Araucanía, Biobío and Los Ríos, 47 thousand hectares of productive forest plantations of Arauco were affected. During 2023, management was carried out that allowed to recover an approximate equivalent to 12 thousand hectares.

At the year ended December 31, 2023, a forest fire loss net of insurance compensation of ThU.S.$ 17,191 was recognized for the fires in Chile, reducing the gross value of the biological assets, which represented 3.2% of the value of the forest plantations of Arauco. As of December 31, 2024, a forest loss of ThU.S.$ 2,841 was recognized for fires in Chile.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 21. ENVIRONMENTAL MATTERS

Environment management

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

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

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

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

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

Detail information of disbursements related to the environment

As of December 31, 2024 and 2023 Arauco had made and / or had committed the following disbursements in major environmental projects:

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Disbursements undertaken 2023

Committed Disbursements

12-31-2024

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

104

Assets

Properties, plants and equipments

1,222

2025

Celulosa Arauco y Constitucion S.A.

Investment projects for the control and management of gas emissions from industrial process

In process

Assets

Properties, plants and equipments

511

2025

Celulosa Arauco y Constitucion S.A.

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

In process

2,516

Assets

Properties, plants and equipments

5,070

2025

Celulosa Arauco y Constitucion S.A.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

4,256

Assets

Properties, plants and equipments

8,816

2025

Celulosa Arauco y Constitucion S.A.

Environmental improvement studies

In process

16,822

Expense

Operating costs

2025

Celulosa Arauco y Constitucion S.A.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

17,365

Expense

Operating costs

2025

Arauco do Brasil S.A.

Environmental improvement studies

In process

1,799

Assets

Properties, plants and equipments

270

2025

Arauco Argentina S.A.

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

In process

Assets

Properties, plants and equipments

553

2025

Arauco Industria de Paineis S.A.

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

In process

223

Expense

Operating costs

127

2025

Forestal Arauco S.A.

Environmental improvement studies

In process

2,372

Expense

Operating costs

1,881

2025

Maderas Arauco S.A.

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

In process

496

Expense

Operating costs

2025

Celulosa y Energía Punta Pereira S.A.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

150

Assets

Properties, plants and equipments

2,500

2025

Arauco Industria de México, S.A. de C.V.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

803

Expense

Operating costs

2025

Arauco North America, Inc

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

Finished

3,249

Assets

Properties, plants and equipments

2024

Arauco North America, Inc

Investment projects for the control and management of gas emissions from industrial process

Finished

368

Assets

Properties, plants and equipments

2024

TOTAL

50,523

20,991

Disbursements undertaken 2023

Committed Disbursements

12-31-2023

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

1,624

Assets

Properties, plants and equipments

608

2024

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

9,095

Assets

Properties, plants and equipments

4,019

2024

Celulosa Arauco y Constitucion S.A.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

5,102

Assets

Properties, plants and equipments

13,072

2024

Celulosa Arauco y Constitucion S.A.

Environmental improvement studies

In process

19,046

Expense

Operating costs

2024

Celulosa Arauco y Constitucion S.A.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

17,397

Expense

Operating costs

2024

Arauco do Brasil S.A.

Environmental improvement studies

In process

1,395

Assets

Properties, plants and equipments

918

2024

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

3,677

Expense

Operating costs

127

2024

Forestal Arauco S.A.

Environmental improvement studies

Finished

336

Expense

Operating costs

2023

Forestal Arauco S.A.

Environmental improvement studies

In process

1,895

Expense

Operating costs

1,785

2023

Maderas Arauco S.A.

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

In process

654

Assets

Properties, plants and equipments

2024

Celulosa y Energía Punta Pereira S.A.

Expansion of solid industrial waste dumpsite for management of these in the future

In process

Assets

Properties, plants and equipments

2,650

2024

Arauco North America, Inc

Investment projects for the control and management of gas emissions from industrial process

In process

2,854

Assets

Properties, plants and equipments

697

2024

Arauco North America, Inc

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

In process

249

Assets

Properties, plants and equipments

2024

Arauco North America, Inc

Investment projects for the control and management of gas emissions from industrial process

Finished

856

Assets

Properties, plants and equipments

2023

Arauco North America, Inc

Investment projects for the control and management of hazardous liquids and water energy optimization of industrial plants

Finished

1,984

Assets

Properties, plants and equipments

2023

TOTAL

66,164

23,928

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 22. NON-CURRENT ASSETS HELD FOR SALE

On December 20, 2023, Arauco entered into a share purchase agreement (“SPA”). Pursuant to this agreement, Arauco, along with its subsidiary Inversiones Arauco Internacional Limitada (“IAIL”, and jointly with Celulosa Arauco, the “Sellers”), agreed to sell to a company specially incorporated for such purpose and designated by the Brazilian company Klabin S. A. (the “Buyer”) all of the shares and interests that the Sellers directly hold in Arauco Florestal Arapotí S.A. and Arauco Forest Brasil S.A., and indirectly hold in Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A. (jointly, the “Brazilian Forestry Companies”), which own assets mainly in the state of Paraná, Brazil.

The assets included in the sale were all the shares and interests in these Brazilian forestry companies, except for Florestal Vale do Corisco S.A., where the Sellers indirectly own 49% of the latter’s shares of this associate.

The eucalyptus and pine forest plantations included in the transaction span approximately 85,000 hectares. Moreover, it should also be noted that the sale of shares and interests did not extend to the industrial assets related to the panel mills in Brazil, nor to other forestry assets located mainly in the state of Mato Grosso do Sul, Brazil, which are related to an industrial project to subsequently build a pulp mill, known as “Project Sucuriú.”

On July 16, 2024, Arauco transferred all shares and interests held in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., entities owning assets primarily located in the state of Paraná, Brazil. The sale price, which amounted to ThU.S.$ 1,168,161, amount that was fully paid on that date. Subsequently, on October 17, 2024, an additional payment of ThU.S.$ 4,613 due to customary price adjustments at the transaction’s closing. The total amount received by Arauco after taxes was ThU.S.$ 971,097, which generated a profit of ThU.S.$ 209,497 after taxes.

Prior to the reclassification to held for sale and as prescribed by IFRS 5, Arauco assessed whether at that date it was necessary to conduct an adjustment to bring such assets to the lower of their book value and realizable value, resulting in no adjustment to be recorded (the value of the sale is higher than the book value).

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

	12-31-2024		12-31-2023
Assets classified as held for sale	ThU.S.$		ThU.S.$
Cash and cash equivalents		-		9,852
Other non-financial assets		-		5,113
Trade and other receivables		-		2,879
Inventories		-		13,780
Biological assets		-		281,823
Tax assets		-		1,348
Intangible assets other tan goodwill		-		115
Property, plant and equiment		3,767		68,040
Right of use assets		-		17,308
Investments accounted using the equity method		-		29,102
Assets classified as held for sale (*)		3,767		429,360

(*)	Of the ThU.S.$ 429,360 as of December 31, 2023, only ThU.S.$ 180 correspond to assets other than the sale operation that will be carried out by the Brazilian companies.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

	12-31-2024		12-31-2023
Liabilities classified as held for sale	ThU.S.$		ThU.S.$
Other non-financial liabilities		-		1,040
Trade and other payables		-		7,834
Tax liabilities		-		3,430
Lease liabilities		-		18,795
Payables and other accounts payables		-		1
Other provisions		-		822
Deferred tax liabilities		-		67,406
Liabilities classified as held for sale		-		99,328

As of December 31, 2023, the Company recognized net deferred tax assets of ThU.S.$ 78,061 resulting from the proposed sale transaction. These deferred taxes reflect the difference between the financial book value and tax value of the companies to be sold, which were not previously recorded in accordance with IAS 12. This value represented of a credit to earnings for 2024 of ThU.S.$ 57,110 (charge of ThU.S.$ 57,110 as of December 31, 2023) and a debit to conversion reserves of ThU.S.$ 135,171 (ThU.S.$ 135,171 as of December 31, 2023) (see note 6). These deferred taxes were subsequently allocated to the tax result that was generated at the closing of the sale of the aforesaid investments.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 23. FINANCIAL INSTRUMENTS

23.1 Classification

Arauco's financial instruments as of December 31, 2024 and 2023, 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.

Financial instruments	12-31-2024				12-31-2023
Thousands of dollars	Carrying amount		Fair value		Carrying amount		Fair value

Financial assets at fair value through profit or loss (held for trading)		70,330		70,330		132,869		132,869
Derivative		31		31		61		61
Mutual funds (1)		70,299		70,299		132,808		132,808

Financial assets at amortized cost		2,165,579		2,165,579		1,558,929		1,558,929
Cash and cash equivalents		1,001,261		1,001,261		437,200		437,200
Cash		642,111		642,111		338,033		338,033
Time deposits		359,150		359,150		99,167		99,167
Accounts receivable (net)		1,120,442		1,120,442		1,106,403		1,106,403
Trade receivables		898,717		898,717		688,134		688,134
Lease receivable		67,687		67,687		80,925		80,925
Sundry debtors		20,206		20,206		18,320		18,320
Other receivables		70,367		70,367		248,217		248,217
Prepayments		63,465		63,465		70,807		70,807
Accounts receivable from related parties		10,159		10,159		2,616		2,616
Other financial assets (2)		33,717		33,717		12,710		12,710

Hedging assets		8,959		8,959		41,044		41,044

Financial liabilities at amortized cost (3)		7,414,740		6,799,888		7,896,442		7,227,349
Bonds issued denominated in U.S. dollars		2,898,249		2,638,226		3,402,747		2,936,324
Bonds issued denominated in U.F. (4)		1,819,427		1,404,819		1,594,291		1,323,194
Bank borrowings in U.S. dollars		626,169		673,243		878,793		933,723
Bank borrowings in other currencies		524,854		537,559		620,258		633,755
Lease liabilities		727,990		727,990		559,382		559,382
Trade and other payables		781,281		781,281		811,032		811,032
Accounts payable to related parties		36,770		36,770		29,939		29,939

Financial liabilities at fair value through profit or loss		12		12		498		498

Hedging liabilities		201,906		201,906		107,506		107,506

(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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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 December 31, 2024 and 2023, 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).

	12-31-2024		Level 1		Level 2		Level 3
Fair value	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Financial assets at fair value through profit or loss (held for trading)
Derivatives		31		-		31		-
Mutual Funds		70,299		70,299		-		-

Hedging assets		8,959		-		8,959		-

Financial liabilities at fair value through profit or loss		12		-		12		-
Hedging liabilities		201,906		-		201,906		-

	12-31-2023		Level 1		Level 2		Level 3
Fair value	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Financial assets at fair value through profit or loss (held for trading)
Derivatives		61				61		-
Mutual Funds		132,808		132,808		-		-

Hedging assets		41,044		-		41,044		-

Financial liabilities at fair value through profit or loss		498		-		498		-
Hedging liabilities		107,506		-		107,506		-

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

23.3 Explanation of the valuation of financial instruments.

Cash and cash equivalent and accounts receivable

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

Derivative financial instruments

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

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

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

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

Financial liabilities

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

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

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

The following table sets forth a reconciliation between the financial liabilities and the consolidated statements of financial position as of December 31, 2024 and 2023:

	12-31-2024
Thousands of dollars	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		19,739		67,522		87,261		768,767		711,705		3,149,943		4,630,415		4,717,676
Bank borrowings		28,154		220,673		248,827		728,289		173,907		-		902,196		1,151,023
Swap and Forward		12,817		-		12,817		189,101		-		-		189,101		201,918
Total other financial liabilities (a)		60,710		288,195		348,905		1,686,157		885,612		3,149,943		5,721,712		6,070,617

	12-31-2024
Thousands of dollars	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		15,116		40,735		55,851		104,578		70,490		497,071		672,139		727,990
Total lease liabilities (b)		15,116		40,735		55,851		104,578		70,490		497,071		672,139		727,990

	12-31-2024
Thousands of dollars	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		741,847		4,124		745,971		35,310		-		-		35,310		781,281
Accounts payable to related companies		10,563		-		10,563		13,655		7,581		4,971		26,207		36,770
Total accounts payable (c)		752,410		4,124		756,534		48,965		7,581		4,971		61,517		818,051
Total financial liabilities (a) + (b) + (c)		828,236		333,054		1,161,290		1,839,700		963,683		3,651,985		6,455,368		7,616,658

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

	12-31-2023
Thousands of dollars	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		569,526		598,640		296,326		708,379		3,393,693		4,398,398		4,997,038
Bank borrowings		86,243		388,779		475,022		786,031		169,016		68,982		1,024,029		1,499,051
Swap and Forward		8,863		-		8,863		99,141		-		-		99,141		108,004
Total other financial liabilities (a)		124,220		958,305		1,082,525		1,181,498		877,395		3,462,675		5,521,568		6,604,093

	12-31-2023
Thousands of dollars	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		16,911		30,331		47,242		70,451		58,933		382,756		512,140		559,382
Total lease liabilities (b)		16,911		30,331		47,242		70,451		58,933		382,756		512,140		559,382

	12-31-2023
Thousands of dollars	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	744,010	16,445	760,455	27,763	-	22,814	50,577	811,032
Accounts payable to related companies	6,958	-	6,958	-	7,581	15,400	22,981	29,939
Total accounts payable (c)	750,968	16,445	767,413	27,763	7,581	38,214	73,558	840,971

Total financial liabilities (a) + (b) + (c)	892,099	1,005,081	1,897,180	1,279,712	943,909	3,883,645	6,107,266	8,004,446

23.4 Derivative instruments

Hedging instruments recorded as of December 31, 2024 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 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 consolidated statement of changes in equity as other comprehensive income or the consolidated statements of comprehensive income as finance income or finance costs, net of differences in exchange rate of the hedged items and the deferred tax.

A summary of the derivative financial instruments included in the consolidated statements of financial position as of December 31, 2024 and 2023, is presented below:

Financial instruments	12-31-2024 Fair value ThU.S.$			12-31-2023 Fair value ThU.S.$
Financial assets at fair value through profit or loss		31			61
Derivatives (1)		31			61

Hedging assets		8,959			41,044
Derivatives (1)		861			7,533
Cross Currency Swaps (2)		8,098			33,511

Financial liabilities at fair value through profit or loss		(12	)		(498	)
Derivatives (1)		(12	)		(498	)

Hedging liabilities		(201,906	)		(107,506	)
Derivatives (1)		(17,275	)		(1,201	)
Cross currency swaps (2)		(184,631	)		(106,305	)

(1)

Includes HFO swap, forward, NDF and IRS from Chile, USA, Argentina and Uruguay tables.

(2)

Includes cross currency swaps from Chile.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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 December 31, 2024 and 2023:

Cross currency swaps

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

									12-31-2024			12-31-2023
Bond	Institution	Amount U.S.$		Amount U.F.		Starting date	Ending date		fair value ThU.S.$			fair value ThU.S.$
F	BCI		17,500,011		454,545	10-30-2021		10-30-2029		757			2,400
F	Scotiabank		17,521,026		454,545	10-30-2021		10-30-2029		922			2,673
F	Banco de Chile		17,262,302		454,545	4-30-2019		10-30-2029		493			1,998
F	BCI		17,444,744		454,545	4-30-2023		10-30-2029		425			1,922
F	BCI		17,466,559		454,545	4-30-2023		10-30-2029		407			1,901
F	BCI		17,100,708		454,545	4-30-2023		10-30-2029		722			2,273
F	BCI		17,262,300		454,545	4-30-2023		10-30-2029		579			2,104
P	BCI		28,000,019		727,272	11-15-2021		11-15-2032		1,561			4,019
P	BCI		27,997,657		727,272	11-15-2021		11-15-2032		2,232			4,861
P	Itau		30,843,030		727,272	11-15-2023		11-15-2032		(2,055	)		(407	)
P	Santander		60,731,198		1,454,545	11-15-2023		11-15-2032		(4,577	)		(685	)
R	Santander		128,611,183		3,000,000	10-1-2014		4-1-2024		-			(4,612	)
R	JP Morgan		43,185,224		1,000,000	10-1-2014		4-1-2024		-			(1,556	)
R	Itau		43,277,070		1,000,000	10-1-2014		4-1-2024		-			(1,447	)
R	Deutsche		42,870,394		1,000,000	4-1-2024		4-1-2035		(4,946	)		-
R	Deutsche		42,870,394		1,000,000	4-1-2024		4-1-2035		(4,660	)		-
R	JP Morgan		42,870,394		1,000,000	4-1-2024		4-1-2035		(4,171	)		-
R	Deutsche		43,185,224		1,000,000	4-1-2024		4-1-2035		(4,694	)		-
R	JP Morgan		43,277,070		1,000,000	4-1-2024		4-1-2035		(4,845	)		-
S	Santander		201,340,031		5,000,000	11-15-2016		11-15-2026		(4,962	)		8,946
W	Goldman Sachs		40,521,750		1,000,000	10-10-2018		10-10-2028		(2,337	)		(129	)
W	Scotiabank		40,537,926		1,000,000	10-10-2018		10-10-2028		(2,392	)		(154	)
W	Goldman Sachs		40,066,555		1,000,000	10-10-2018		10-10-2028		(1,818	)		414
X	Santander		118,400,504		3,000,000	10-10-2018		10-10-2038		(13,392	)		(6,778	)
X	Santander		97,971,786		2,500,000	10-10-2018		10-10-2038		(10,876	)		(5,358	)
Y	JP Morgan		89,387,460		2,000,000	4-10-2023		4-10-2032		(13,808	)		(9,435	)
Z	Santander		90,274,363		2,000,000	4-10-2023		4-10-2032		(15,414	)		(10,687	)
Z	Banco de Chile		44,572,044		1,000,000	4-10-2023		4-10-2032		(6,367	)		(4,135	)
Z	JP Morgan		44,572,044		1,000,000	4-10-2023		4-10-2032		(6,536	)		(4,290	)
Z	JP Morgan		44,559,642		1,000,000	4-10-2023		4-10-2032		(6,244	)		(3,962	)
AB	BCI		43,724,036		1,000,000	5-15-2023		5-15-2033		(5,475	)		(3,116	)
AB	BCI		43,709,927		1,000,000	5-15-2023		5-15-2033		(5,142	)		(2,744	)
AB	BCI		43,762,973		1,000,000	5-15-2023		5-15-2033		(5,278	)		(2,893	)
AB	Banco de Chile		43,601,403		1,000,000	5-15-2023		5-15-2033		(4,983	)		(2,534	)
AB	Itau		43,654,189		1,000,000	5-15-2023		5-15-2033		(4,778	)		(2,581	)
										(131,652	)		(33,992	)

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

								12-31-2024			12-31-2023
Institution	Amount U.S.$		Amount EUR		Starting date	Ending date		fair value ThU.S.$			fair value ThU.S.$
Santander		69,805,992		58,823,529	6-15-2021		12-15-2029		(9,494	)		(8,173	)
Banco de Chile		34,902,941		29,411,765	6-15-2021		12-15-2029		(4,243	)		(3,640	)
MUFG		69,805,882		58,823,529	6-15-2021		12-15-2029		(8,974	)		(7,729	)
JP Morgan		139,611,765		117,647,059	6-15-2021		12-15-2029		(17,682	)		(15,392	)
HSBC		34,902,941		29,411,765	6-15-2021		12-15-2029		(4,488	)		(3,868	)
									(44,881	)		(38,802	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Forward

Non-Delivery Forward (NDF) to cover the exposure to exchange rate risk in Brazilian real currency (BRL), in relation to payments associated with the Sucuriú project.

		Amount					12-31-2024 fair value			12-31-2023 fair value
Exchange rate	Institution	ThU.S.$		Starting date	Ending date		ThU.S.$			ThU.S.$
BRLUSD	JP Morgan		50,000,000	11-12-2024		18-02-2025		(1,119	)		-
BRLUSD	Santander Chile		43,000,000	11-12-2024		18-02-2025		(1,106	)		-
BRLUSD	Bank of America		73,000,000	11-12-2024		26-03-2025		(1,773	)		-
BRLUSD	HSBC Bank		70,000,000	13-12-2024		15-05-2025		(1,732	)		-
BRLUSD	SMBC		73,000,000	13-12-2024		25-06-2025		(1,897	)		-
BRLUSD	MUFG		50,000,000	16-12-2024		18-08-2025		(999	)		-
BRLUSD	Santander Chile		48,000,000	16-12-2024		18-08-2025		(854	)		-
BRLUSD	Bank of America		50,000,000	17-12-2024		24-09-2025		(237	)		-
BRLUSD	JP Morgan		44,000,000	17-12-2024		24-09-2025		5			-
BRLUSD	Santander Chile		50,000,000	18-12-2024		17-11-2025		(223	)		-
BRLUSD	JP Morgan		50,000,000	18-12-2024		17-11-2025		(95	)		-
BRLUSD	HSBC Bank		29,000,000	18-12-2024		17-11-2025		(66	)		-
BRLUSD	SMBC		50,000,000	19-12-2024		17-12-2025		631			-
BRLUSD	JP Morgan		50,000,000	19-12-2024		17-12-2025		(120	)		-
BRLUSD	Bank of America		21,000,000	19-12-2024		17-12-2025		(72	)		-
BRLUSD	MUFG		50,000,000	20-12-2024		19-02-2026		(934	)		-
BRLUSD	Mizuho		50,000,000	20-12-2024		19-02-2026		(1,017	)		-
BRLUSD	Mizuho		19,000,000	20-12-2024		19-02-2026		(433	)		-
BRLUSD	MUFG		50,000,000	23-12-2024		25-03-2026		(456	)		-
BRLUSD	Mizuho		50,000,000	23-12-2024		25-03-2026		(496	)		-
BRLUSD	SMBC		28,000,000	23-12-2024		25-03-2026		(187	)		-
BRLUSD	Santander Chile		50,000,000	26-12-2024		15-05-2026		(90	)		-
BRLUSD	BNP Paribas		50,000,000	26-12-2024		15-05-2026		(253	)		-
BRLUSD	BNP Paribas		36,000,000	26-12-2024		15-05-2026		(226	)		-
BRLUSD	MUFG		50,000,000	27-12-2024		24-06-2026		(60	)		-
BRLUSD	BNP Paribas		50,000,000	27-12-2024		24-06-2026		82			-
BRLUSD	Mizuho		32,000,000	27-12-2024		24-06-2026		12			-
								(13,715	)		-

23.4.2. Uruguay

Forward

As of December 31, 2024 and 2023, Arauco through its subsidiaries as a joint operation (50%) in Uruguay maintained the following forward contracts in force and effect for the purposes of ensuring an exchange rate for sale of dollars:

Exchange rate	Institution	12-31-2024 notional ThU.S.$		12-31-2024 fair value ThU.S.$			12-31-2023 notional ThU.S.$		12-31-2023 fair value ThU.S.$
UYUUSD	HSBC - Uruguay		-		-			8,490		292
UYUUSD	Citibank U.K.		1,450		41			5,550		163
UYUUSD	Itaú - Uruguay		1,150		23			10,555		358
UYUUSD	Banco de la República Oriental de Uruguay		-		-			1,920		107
UYUUSD	HSBC - Uruguay		10,245		(880	)		-		-
UYUUSD	Citibank U.K.		1,350		(27	)		-		-
UYUUSD	Itaú - Uruguay		11,395		(703	)		2,300		(7	)
UYUUSD	Banco de la República Oriental de Uruguay		3,825		(166	)		-		-
UYUUSD	JPMorgan Chase Bank U.K.		4,620		(348	)		-		-
EURUSD	Itaú - Uruguay		-		-			299		14
EURUSD	Santander - Uruguay		-		-			916		10
					(2,060	)				937

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Commodity swap

Arauco Uruguay's profits and through its subsidiaries as a joint operation (50%), also face exposure to the price variation of certain fuels, as occurs with Fuel Oil N°6, which is used during the pulp manufacturing process. In order to minimize this risk, the volatility of future flows associated to the purchase of Fuel Oil No. 6 through forwards of this commodity. The agreements that are in force and effect as of December 31, 2024 and 2023, are detailed below:

Commodity	Institution	12-31-2024 notional ThU.S.$		12-31-2024 fair value ThU.S.$			12-31-2023 notional ThU.S.$		12-31-2023 fair value ThU.S.$
Fuel Oil N°6	JP Morgan - N.A.		970		31			734		43
Fuel Oil N°6	DNB Bank ASA		539		11			331		9
Fuel Oil N°6	BNP Paribas		2,000		56			531		19
Fuel Oil N°6	JP Morgan - N.A.		2,777		(149	)		3,523		(353	)
Fuel Oil N°6	DNB Bank ASA		4,181		(232	)		6,874		(530	)
Fuel Oil N°6	BNP Paribas		4,761		(337	)		3,580		(313	)
					(620	)				(1,125	)

23.4.3. United States

Interest rate swap

Arauco through its subsidiary in United States, does not maintain current Interest Rate Swaps in force as of the date of these financial statements. As of December 31, 2023, it had contracts with this type of instrument that has the purpose of setting the interest rate of a variable rate debt in the same currency (USD).

						12-31-2024 fair value		12-31-2023 fair value
Institution	Amount ThU.S.$		Starting date	Ending date		ThU.S.$		ThU.S.$
JP Morgan - N.A.		70,000,000	4-28-2020		3-28-2024		-		2,234
Goldman Sachs N.A.		70,000,000	4-28-2020		3-28-2024		-		2,109
JP Morgan - N.A.		70,000,000	4-28-2020		3-28-2024		-		2,236
							-		6,579

23.4.4. Argentina

Forward

As of December 31, 2024, Arauco through its subsidiary in Argentina does not maintain current forward contracts. As of December 31, 2023, the valuation of this instrument is shown below:

								12-31-2024 fair value		12-31-2023 fair value
Exchange rate	Institution		Amount ThU.S.$		Starting date	Ending date		ThU.S.$		ThU.S.$
ARSUSD		HSBC		5,000	11-29-2023		1-31-2024		-		(496	)
									-		(496	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

23.5 Cash equivalent, loans, receivables and other financial assets

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

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

As of December 31, 2024 and 2023, there are provisions for impairment for ThU.S.$ 13,297 and ThU.S.$ 12,473, respectively.

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Financial assets at amortized cost		2,165,579		1,558,929
Cash and cash equivalents (Mutual Funds not included)		1,001,261		437,200
Cash		642,111		338,033
Time deposits		359,150		99,167
Accounts receivables (net)		1,130,601		1,109,019
Trade receivables		898,717		688,134
Lease receivable		67,687		80,925
Sundry debtors		20,206		18,320
Other receivables		70,367		248,217
Prepayments		63,465		70,807
Accounts receivable from related parties		10,159		2,616
Other financial assets (*)		33,717		12,710

(*)

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

23.5.1. Cash and cash equivalents

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

The composition of cash and cash equivalents (including the balance of mutual funds displayed in this note as valuation, instruments at fair value with profit or loss) at December 31, 2024 and 2023, classified by currency is as follows:

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Cash and cash equivalents		1,071,560		570,008
U.S. dollars		668,888		310,108
Euro		8,754		6,532
Brazilian real		117,848		30,402
Argentine pesos		12,642		58,592
Mexican pesos		40,128		26,439
Other currencies		11,794		3,149
Chilean pesos		211,506		134,786

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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 December 31, 2024 and 2023:

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Trade and other current receivables		1,054,707		997,902
U.S. dollars		815,884		711,883
Euros		28,149		30,330
Brazilian real		38,327		67,137
Argentine pesos		26,569		19,916
Mexican pesos		33,704		34,234
Other currencies		1,077		640
Chilean pesos		92,401		115,907
U.F.		18,596		17,855

Accounts receivable from related parties, current		10,159		2,616
U.S. dollars		5,646		-
Argentine pesos		1,812		174
Chilean pesos		2,701		2,442

Trade and other non-current receivables		65,735		108,501
U.S. dollars		2,784		20,613
Brazilian real		9,891		21,614
Argentine pesos		458		-
Chilean pesos		1,505		1,889
U.F.		51,097		64,385

23.6 Financial liabilities

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

Financial liabilities	12-31-2024 ThU.S.$		12-31-2023 ThU.S.$
Total financial liabilities		7,616,658		8,004,446
Financial liabilities at fair value through profit or loss		12		498
Hedging liabilities		201,906		107,506
Financial liabilities at amortized cost		7,414,740		7,896,442

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

The following table sets forth the current portion of the non-current bank borrowings and debt issued as of December 31, 2024 and 2023:

	12-31-2024 ThU.S.$		12-31-2023 ThU.S.$
Bank borrowings - current portion		108,645		304,830
Bonds issued - current portion		87,261		89,970
Total		195,906		394,800

23.7 Financial liabilities measured at amortized cost

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

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

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

		12-31-2024		12-31-2023		12-31-2024		12-31-2023
		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
	Currency	Amortized cost				Fair value
Total financial liabilities			7,414,740		7,896,442		6,799,888		7,227,349
Bonds issued	U.S. dollar		2,898,249		3,402,747		2,638,226		2,936,324
Bonds issued	U.F.		1,819,427		1,594,291		1,404,819		1,323,194
Bank borrowings	U.S. dollar		626,169		878,793		673,243		933,723
Bank borrowings	Euro		323,417		414,428		336,122		427,925
Bank borrowings	Other currencies		201,437		205,830		201,437		205,830
Lease liabilities	U.F.		21,494		31,797		21,494		31,797
Lease liabilities	Chilean pesos		65,820		33,489		65,820		33,489
Lease liabilities	Real		504,213		364,011		504,213		364,011
Lease liabilities	Mexican pesos		1,107		3,540		1,107		3,540
Lease liabilities	U.S. dollar		133,934		126,199		133,934		126,199
Lease liabilities	Euro		408		150		408		150
Lease liabilities	Other currencies		1,014		196		1,014		196
Trade and other payables	U.S. dollar		212,689		173,681		212,689		173,681
Trade and other payables	Euro		21,414		18,933		21,414		18,933
Trade and other payables	Brazilian real		81,662		98,198		81,662		98,198
Trade and other payables	Argentine pesos		47,373		46,403		47,373		46,403
Trade and other payables	Mexican pesos		24,199		18,336		24,199		18,336
Trade and other payables	Other currencies		16,411		14,609		16,411		14,609
Trade and other payables	Chilean pesos		339,388		399,338		339,388		399,338
Trade and other payables	U.F.		38,145		41,534		38,145		41,534
Accounts payable to related parties	U.S. dollar		26,633		15,400		26,633		15,400
Accounts payable to related parties	Brazilian real		3,007		-		3,007		-
Accounts payable to related parties	Chilean pesos		7,130		14,539		7,130		14,539

The financial liabilities at amortized cost presented in the consolidated statements of financial position as of December 31, 2024 and 2023 are as follows:

	12-31-2024
	ThU.S.$
	Current		Non-current		Total
Other financial liabilities		336,088		5,532,611		5,868,699
Lease liabilities		55,851		672,139		727,990
Trade and other payables		745,971		35,310		781,281
Accounts payable to related parties		10,563		26,207		36,770
Total financial liabilities at amortized cost		1,148,473		6,266,267		7,414,740

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

	12-31-2023
	ThU.S.$
	Current		Non-current		Total
Other financial liabilities		1,073,662		5,422,427		6,496,089
Lease liabilities		47,242		512,140		559,382
Trade and other payables		760,455		50,577		811,032
Accounts payable to related parties		6,958		22,981		29,939
Total financial liabilities at amortized cost		1,888,317		6,008,125		7,896,442

23.8 Cash flow hedges reserve reconciliation

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

	January – December
	2024			2023
	ThU.S.$			ThU.S.$
Opening balance		(64,952	)		(10,112	)
Gains (losses) on cash flow hedges, before tax		27,762			(72,816	)
Recycle of cash flow hedges to profit or loss		(6,747	)		(1,634	)
Income tax relating to cash flow hedges of other comprehensive income		(6,075	)		19,610
Closing balance		(50,012	)		(64,952	)

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:

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

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

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

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

23.9.2 Qualitative information on objectives, policies and processes applied by the company regarding capital management

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

23.9.3 Quantitative information on capital management

The financial safeguards to which Arauco is subject are shown in the following table:

	12-31-2024		12-31-2023		Interest	Debt level
Instrument	ThU.S.$		ThU.S.$		coverage >= 2,0x	(1) <= 1,2x
Domestic bonds		1,819,427		1,594,291	N/R	a
Term loan credit		273,686		272,664	a	a
RCF credit (2)		-		225,040	a	a
Term loan credit (3)		212,301		-	a	a
Term loan credit (3)		-		212,619	a	a
Syndicate ECA		323,417		414,428	a	a

N/R: Not required for the financial obligation.

(1)

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

(2)

In July 2024, Arauco paid the RCF drawn for MUS$ 225 with maturity in February 2025. Subsequently, during September 2024, a new RCF was subscribed with a maximum amount of MUS$ 450 with maturity in 2027, which replaced the RCF that was valid. As of the date of publication of these financial statements, the new line mentioned above has not been drawn.

(3)

In March 2024, our subsidiary Arauco North America, Inc. signed a Term Loan with a group of banks, for a total of MUS$210, where Arauco acts as guarantor. The structure of this loan is for three years and a single capital payment at the end of that period. During that same month, our subsidiary Arauco North America, Inc. fully prepaid its 2017 committed line of credit loan (for which Arauco acted as guarantor), for a total of MUS$ 210 plus accrued interest, which was due on the April 28, 2024.

As of December 31, 2024 and 2023, Arauco has complied with all of its financial covenants.

The following table sets forth the credit ratings of our debt instruments as of December 31, 2024, 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 December 31, 2024 and 2023 is as follows:

	12-31-2024		12-31-2023
	ThU.S.$		ThU.S.$
Equity		8,723,715		8,009,029
Bank borrowings		1,151,023		1,499,051
Lease liabilities		727,990		559,382
Bonds issued		4,717,676		4,997,038
Capitalization		15,320,404		15,064,500

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.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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.

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

Trade receivables		898,681		688,098
Lease receivable		17,247		16,314
Sundry debtors		9,531		8,615
Other receivables		68,459		222,945
Prepayments		60,789		61,930
Net subtotal		1,054,707		997,902

Trade receivables		908,241		696,226
Lease receivable		17,247		16,314
Sundry debtors		11,056		10,464
Other receivables		69,463		223,956
Prepayments		60,789		61,930
Gross subtotal		1,066,796		1,008,890

Provision for doubtful trade receivables		9,560		8,128
Provision for doubtful lease receivable		-		-
Provision for doubtful sundry debtors		1,525		1,849
Provision for doubtful other receivables		1,004		1,011
Subtotal bad debt		12,089		10,988

Non-current receivables

Trade receivables		36		36
Lease receivable		50,440		64,611
Sundry debtors		10,675		9,705
Other receivables		1,908		25,272
Prepayments		2,676		8,877
Net subtotal		65,735		108,501

Trade receivables		1,244		1,521
Lease receivable		50,440		64,611
Sundry debtors		10,675		9,705
Other receivables		1,908		25,272
Prepayments		2,676		8,877
Gross subtotal		66,943		109,986

Provision for doubtful trade receivables		1,208		1,485
Provision for doubtful lease receivable		-		-
Provision for doubtful sundry debtors		-		-
Provision for doubtful other receivables		-		-
Subtotal bad debt		1,208		1,485

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

As of December 31, 2024, Arauco’s balance for commercial debtors was ThU.S.$ 909,485 of which, according to the agreed sales conditions, 42.01% corresponded to sales on credit (open account), 57.05% to sales with letters of credit and 0.94% to other types of sales. The client with the largest Open Account debt represented 2.99% of the total accounts receivable as of that date.

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

December 31, 2024
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		1,472			759			198			25			54			17			5			10			8			37			2,585
ThU.S.$		866,818			34,456			1,922			716			50			31			8			53			151			5,280			909,485
%		95.31	%		3.78	%		0.21	%		0.08	%		0.01	%		0.00	%		0.00	%		0.01	%		0.02	%		0.58	%		100	%

December 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		1,375			750			34			30			79			8			3			3			2			42			2,326
ThU.S.$		640,699			41,369			1,503			9,275			70			104			55			15			11			4,646			697,747
%		91.82	%		5.93	%		0.22	%		1.33	%		0.01	%		0.01	%		0.01	%		0.00	%		0.00	%		0.67	%		100	%

Arauco applies IFRS 9 using the simplified method to determine the provision for expected credit losses of its commercial debtors, corresponding to accounts receivable from customers with credit line. The applied model is based on a scoring system that provides a score to each customer, which considers different variables such as country risk, payment behavior and financial condition of the debtor, among others, thus assigning a probability of default to each customer for the next 12 months. This factor is applied to the balance receivable of each debtor, determining the provision for expected credit losses.

	12-31-2024 ThU.S.$			12-31-2023 ThU.S.$
Letters of credit		518,872			308,161
Credit line		382,117			378,921
Others		8,496			10,665
Total trade receivables		909,485			697,747
Total allowance for doubtful accounts		(10,768	)		(9,613	)
Total net trade receivables		898,717			688,134

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Regarding the loss allowance for trade receivables and others, below we provide detail for the movements as of December 31, 2024 and 2023:

	12-31-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening loss allowance as at January 1		12,473			7,960
Increase due to impairment loss		2,840			3,507
Increase due to business combination		-			2,043
Used impairment		(86	)		-
Unused impairment reversed		(1,587	)		(1,037	)
Increase (decrease) due to exchange differences		(343	)		-
Closing balance		13,297			12,473

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 given to each customer. The approval or rejection of a credit limit for all term sales is carried out by different credit committees, which report to the Corporate Finance Management. The regulations and procedures applicable for the correct control and risk management over the sales on credit are ruled by the Credit Policy defined for the Arauco group.

Arauco’s policy is to take out insurance to cover the sales of companies Celulosa Arauco y Constitución S.A., Maderas Arauco S.A., Forestal Arauco S.A., Arauco Argentina S.A., Arauco do Brasil S.A., Arauco Industria de Paneis S.A., Arauco Europe Coöperatief U.A., Araucomex S.A. de C.V., Arauco Industria de México, S.A. de C.V., Arauco Perú S.A., Arauco North America, Inc y Arauco Canada Ltd.

As another way of minimizing risk and supporting a line of credit approved by the Credit Committee through guarantees, Arauco holds guarantees such as mortgages, pledges, Standby letters of credit, bank performance bonds, promissory notes, borrowings or any other that could be required under the laws of each country. The total amount held in guarantees amounts to ThU.S.$ 121,342, effective as of December 31, 2024. The procedure for guarantees is regulated by Arauco’s Policy on Guarantees, whose purpose is to control their accounting, due date and custody.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

In summary, debt with term sale with credit line covered by the various insurance policies and guarantees amounts to 97.01% and, therefore, Arauco’s portfolio exposure amounts to 2.99%.

Secured open accounts receivable	ThU.S.$		%
Total open accounts receivable		384,933		100.00	%
Secured receivables (*)		373,410		97.01	%
Unsecured receivables		11,523		2.99	%

(*)

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

Investment policy:

Arauco has an Investment Policy which identifies and limits the financial instruments and the entities into which Arauco, is authorized to invest. The Company’s Treasury Department is centralized. For the subsidiary in Argentina, the Corporate Finance Department monitors and controls compliance with Arauco financial policies, but its daily treasury activity is managed independently. The Head Office is responsible for carrying out investments, cash flow surplus investments, and short and long-term debt subscriptions. Exceptions to this rule apply to short and long-term debt, and will be for specific investments made through other companies where authorization is required from the Chief Financial Officer.

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

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

The required information to evaluate the various criteria are obtained from published financial statements from the banks under evaluation and from the credit risk ratings of short and long-term debt securities, defined by the regulatory body (Commission for the Financial Market) and carried out by rating agencies authorized by said organization.

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

23.10.2 Type of risk: Liquidity risk

Description

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

Explanation of liquidity risk exposure and how this risk arises

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Explanation of objectives, policies and processes for risk management, and measurement methods

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

The following tables detail Arauco’s liquidity analysis for its financial liabilities as of December 31, 2024 and 2023.

The tables have been drawn up based on the contractual undiscounted cash outflows and their remaining contractual maturities.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

December 31, 2024				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than				Non
				months		months		Years		years		years		years		5 years		Current		current		Effective
Tax ID	Name	Currency	Bank borrowings	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			Nominal rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Bank of Nova Scotia		-		19,577		293,504		-		-		-		-		19,577		293,504		7.05	%		1.75% + Sofr 6m
93.458.000-1	Celulosa Arauco y Constitución S.A.	Euros	BNP paribas / ECA		-		71,045		70,330		69,607		68,888		68,163		-		71,045		276,988		1.10	%		Fixed 1.06%
-	TecVerde Engenharia S.A.	Brazilian real	Banco Regional de Desenvolvimento do Extremo Sul		23		69		69		-		-		-		-		92		69		5.22	%		Fixed 5.10%
-	TecVerde Engenharia S.A.	Brazilian real	Santander		-		-		2,899		-		-		-		-		-		2,899		14.19	%		CDI + 2.66%
	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		7,663		-		-		-		-		-		7,663		-		4.38	%		Fixed 4.38%
-	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		7,621		-		-		-		-		-		7,621		-		4.28	%		Fixed 4.28%
-	Eufores S.A.	U.S. dollar	BBVA		-		9,711		-		-		-		-		-		9,711		-		4.50	%		Fixed 4.50%
-	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		28,097		-		-		-		-		-		28,097		-		4.38	%		Fixed 4.38%
-	Stora Enso Uruguay S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		2,554		-		-		-		-		-		2,554		-		4.38	%		Fixed 4.38%
-	Eufores S.A.	U.S. dollar	ITAU		-		12,257		-		-		-		-		-		12,257		-		4.50	%		Fixed 4.50%
-	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		11,178		-		-		-		-		-		11,178		-		4.28	%		Fixed 4.28%
-	Eufores S.A.	U.S. dollar	Santander		-		33,229		-		-		-		-		-		33,229		-		4.50	%		Fixed 4.50%
-	Eufores S.A.	U.S. dollar	Scotiabank		-		5,109		-		-		-		-		-		5,109		-		4.66	%		Fixed 4.66%
-	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		26		28		431		-		-		-		-		54		431		13.90	%		CDI + 1.75%
-	Arauco do Brasil S.A.	Brazilian real	Banco Safra S.A.		836		818		1,543		1,397		1,255		574		-		1,654		4,769		13.55	%		CDI + 1.40%
-	Arauco do Brasil S.A.	Brazilian real	Banco Safra S.A.		5,656		5,437		10,232		9,274		8,352		3,818		-		11,093		31,676		13.55	%		CDI + 1.40%
-	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		2,394		2,629		5,158		13,190		19,756		17,670		-		5,023		55,774		13.10	%		CDI + 0.95%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		3,613		3,854		60,315		-		-		-		-		7,467		60,315		13.77	%		CDI + 1.62%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco BTG Pactual S.A.		16,028		1,825		16,172		14,340		-		-		-		17,853		30,512		13.71	%		CDI + 1.56%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco Safra S.A.		-		9,919		8,871		-		-		-		-		9,919		8,871		13.70	%		CDI + 1.55%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		351		-		-		-		-		-		-		351		-		16.50	%		Fixed 16.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		445		-		-		-		-		-		-		445		-		15.65	%		Fixed 15.65%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		674		-		-		-		-		-		-		674		-		15.00	%		Fixed 15%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		874		-		-		-		-		-		-		874		-		15.00	%		Fixed 15%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		338		-		-		-		-		-		-		338		-		12.50	%		Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		459		-		-		-		-		-		-		459		-		12.50	%		Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		-		608		-		-		-		-		-		608		-		12.50	%		Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		330		-		-		-		-		-		-		330		-		12.50	%		Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		-		329		-		-		-		-		-		329		-		12.50	%		Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		451		-		-		-		-		-		-		451		-		12.50	%		Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	BBVA		-		5,095		-		-		-		-		-		5,095		-		3.86	%		Fixed 3.86%
-	Arauco Argentina S.A.	U.S. dollar	Banco Galicia		-		5,086		-		-		-		-		-		5,086		-		3.50	%		Fixed 3.50%
-	Arauco Argentina S.A.	U.S. dollar	BBVA		-		5,086		-		-		-		-		-		5,086		-		3.50	%		Fixed 3.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Galicia Más		-		5,074		-		-		-		-		-		5,074		-		3.00	%		Fixed 3%
-	Arauco North America, Inc.	U.S. dollar	Banco Itau Corpbanca - NY Branch		-		12,339		12,339		216,153		-		-		-		12,339		228,492		5.80	%		1.55% + Sofr 6m
			Total bank borrowings		32,498		266,237		481,863		323,961		98,251		90,225		-		298,735		994,300

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

December 31, 2024				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		Effective			Nominal
Tax ID	Name	Currency	Bonds	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			Rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		-		21,025		20,288		19,551		18,814		18,077		-		21,025		76,730		4.25	%		4.21	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		-		8,410		8,115		7,820		7,526		7,231		-		8,410		30,692		4.25	%		4.21	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-P		-		22,903		22,209		21,515		20,821		20,127		56,217		22,903		140,889		4.00	%		3.96	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-R		-		6,878		6,878		6,878		6,878		6,878		230,596		6,878		258,108		3.60	%		3.57	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-S		-		4,599		197,365		-		-		-		-		4,599		197,365		2.40	%		2.39	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-W		-		2,416		2,416		2,416		118,076		-		-		2,416		122,908		2.10	%		2.09	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-X		-		5,687		5,687		5,687		5,687		5,687		291,660		5,687		314,408		2.70	%		2.68	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-Y		-		2,372		2,372		2,372		2,372		2,372		81,851		2,372		91,339		3.10	%		3.08	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-Z		-		6,120		6,120		6,120		6,120		6,120		272,325		6,120		296,805		3.20	%		3.17	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-AB		-		6,120		6,120		6,120		6,120		6,120		290,685		6,120		315,165		3.20	%		3.17	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-AC		-		1,224		1,224		1,224		10,786		10,480		20,042		1,224		43,756		3.20	%		3.20	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-ae		-		10,674		10,674		10,674		10,674		10,674		507,095		10,674		549,791		3.10	%		3.10	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2027		-		19,375		19,375		519,375		-		-		-		19,375		538,750		3.88	%		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		796,000		22,000		884,000		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		510,625		-		21,250		574,375		4.25	%		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		1,036,250		27,500		1,146,250		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		510,500		21,000		594,500		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		1,027,875		25,750		1,130,875		5.15	%		5.15	%
			Total		23,375		211,928		426,343		727,252		331,374		700,641		5,121,096		235,303		7,306,706

December 31, 2024				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		102		305		251		4		-		-		-		407		255
85.805.200-9	Forestal Arauco S.A.	U.F.	Lands		607		-		384		384		384		384		5,755		607		7,291
85.805.200-9	Forestal Arauco S.A.	U.S. dollar	Lands		60		180		240		240		240		-		-		240		720
85.805.200-9	Forestal Arauco S.A.	U.F.	Plants and equipments		840		1,901		2,740		2,435		2,435		1,420		-		2,741		9,030
85.805.200-9	Forestal Arauco S.A.	Chilean pesos	Plants and equipments		89		267		556		119		-		-		-		356		675
-	Arauco Argentina S.A.	U.S. dollar	Buildings and constructions		38		-		-		-		-		-		-		38		-
-	Arauco Argentina S.A.	U.S. dollar	Plants and equipments		344		440		626		553		553		553		4,516		784		6,801
-	Arauco Argentina S.A.	U.S. dollar	Motor vehicles		210		288		165		-		-		-		-		498		165
-	Novo Oeste Gestão de Ativos Florestais S.A.	Brazilian real	Buildings and constructions		1		2		2		-		-		-		-		3		2
-	Arauco Industria de Paineis S.A.	Brazilian real	IT equipment		11		28		55		-		-		-		-		39		55
-	Arauco do Brasil S.A.	Brazilian real	IT equipment		45		134		-		-		-		-		-		179		-
-	Arauco do Brasil S.A.	Brazilian real	Buildings and constructions		26		81		109		109		109		-		-		107		327
-	Arauco Celulose do Brasil S.A.	Brazilian real	Lands		6,357		26,653		44,174		40,450		40,454		40,454		706,942		33,010		872,474
-	Arauco Celulose do Brasil S.A.	Brazilian real	Buildings and constructions		41		110		142		110		106		35		-		151		393
-	Arauco Celulose do Brasil S.A.	Brazilian real	IT equipment		19		56		62		23		-		-		-		75		85
-	Mahal Empreendimentos e Participações S.A.	Brazilian real	Lands		904		1,282		2,186		2,186		2,187		2,187		17,486		2,186		26,232
-	Mahal Empreendimentos e Participações S.A.	Brazilian real	Buildings and constructions		1		2		2		-		-		-		-		3		2
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Buildings and constructions		398		1,195		1,595		1,595		1,595		-		-		1,593		4,785
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Motor vehicles		23		60		25		-		-		-		-		83		25
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Plants and equipments		1,006		3,019		4,040		4,056		4,071		4,086		52,372		4,025		68,625
93.458.000-1	Celulosa Arauco y Constitución S.A.	Chilean pesos	Motor vehicles		2,663		7,396		4,436		2,132		2,132		1,599		-		10,059		10,299
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Motor vehicles		433		1,299		1,732		1,732		1,732		509		-		1,732		5,705
-	Arauco North America, Inc.	U.S. dollar	Buildings and constructions		64		199		395		347		651		729		4,245		263		6,367
-	Arauco North America, Inc.	U.S. dollar	Motor vehicles		527		1,367		618		121		37		-		-		1,894		776
-	Arauco Canada Limited	Canadian dollar	Motor vehicles		110		910		54		-		-		-		-		1,020		54
-	Celulosa y Energía Punta Pereira S.A.	U.S. dollar	Plants and equipments		240		719		640		640		640		432		6,261		959		8,613
-	Eufores S.A.	U.S. dollar	Lands		1,067		3,202		6,682		6,187		5,894		5,496		31,739		4,269		55,998
-	Eufores S.A.	U.S. dollar	Plants and equipments		306		917		1,222		1,222		-		-		-		1,223		2,444
-	Eufores S.A.	U.S. dollar	Buildings and constructions		92		278		209		159		165		170		436		370		1,139
96.510.970-6	Maderas Arauco S.A.	Chilean pesos	Motor vehicles		3,771		11,257		23,120		8,624		7,639		651		-		15,028		40,034
96.510.970-6	Maderas Arauco S.A.	U.F.	Motor vehicles		1		4		3		-		-		-		-		5		3
76.879.577-0	E2E SpA.	Chilean pesos	Lands		54		161		-		-		-		-		-		215		-
-	TecVerde Engenharia S.A.	Brazilian real	Lands		-		-		10		-		-		-		-		-		10
-	Arauco Europe Cooperatief U.A.	Euros	Motor vehicles		12		28		28		11		-		-		-		40		39
-	Arauco Europe Cooperatief U.A.	Euros	Buildings and constructions		19		59		80		82		84		71		-		78		317
-	Araucomex S.A. de C.V.	Mexican pesos	Buildings and constructions		131		412		280		158		14		14		-		543		466
-	Araucomex S.A. de C.V.	U.S. dollar	Buildings and constructions		36		114		140		157		175		31		-		150		503
-	Arauco Industria de México, S.A. de C.V.	Mexican pesos	Motor vehicles		26		59		64		33		3		-		-		85		100
-	Arauco Industria de México, S.A. de C.V.	U.S. dollar	Plants and equipments		162		499		701		743		193		-		-		661		1,637
-	Arauco Industria de México, S.A. de C.V.	Mexican pesos	IT equipment		2		2		-		-		-		-		-		4		-
			Total		20,838		64,885		97,768		74,612		71,493		58,821		829,752		85,723		1,132,446

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.

100

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

December 31, 2023				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than				Non
				months		months		Years		years		years		years		5 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.$		Effective rate			Nominal rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Bank of Nova Scotia		-		19,715		19,661		293,584		-		-		-		19,715		313,245		7.09	%	Fixed 7.05%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Bank of Nova Scotia		-		15,037		227,465		-		-		-		-		15,037		227,465		6.63	%	Fixed 6.60%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco de Chile		70,316		-		-		-		-		-		-		70,316		-		5.72	%	Fixed 5.72%
93.458.000-1	Celulosa Arauco y Constitución S.A.	Euros	BNP paribas / ECA		-		76,690		75,881		75,118		74,346		73,577		72,803		76,690		371,725		1.10	%	Fixed 1.06%
-	TecVerde Engenharia S.A.	Brazilian real	ITAU		-		1,722		-		-		-		-		-		1,722		-		9.00	%	Fixed 4.63%
-	TecVerde Engenharia S.A.	Brazilian real	Banco Regional de Desenvolvimiento do Extremo Sul		30		34		121		146		-		-		-		64		267		6.00	%	Fixed 5.10%
-	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		7,678		-		-		-		-		-		7,678		-		4.76	%	Fixed 4.76%
-	Stora Enso Uruguay S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		2,559		-		-		-		-		-		2,559		-		4.76	%	Fixed 4.76%
-	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		28,153		-		-		-		-		-		28,153		-		4.76	%	Fixed 4.76%
-	Eufores S.A.	U.S. dollar	BBVA		-		17,989		-		-		-		-		-		17,989		-		5.60	%	Fixed 5.6%
-	Eufores S.A.	U.S. dollar	ITAU		-		7,713		-		-		-		-		-		7,713		-		5.75	%	Fixed 5.75%
-	Eufores S.A.	U.S. dollar	Scotiabank		-		2,569		-		-		-		-		-		2,569		-		5.65	%	Fixed 5.65%
-	Eufores S.A.	U.S. dollar	Santander		-		28,262		-		-		-		-		-		28,262		-		5.70	%	Fixed 5.7%
-	Arauco Forest Brasil S.A.	Brazilian real	Banco Safra S.A.		2,773		2,641		18,670		16,880		15,104		-		-		5,414		50,654		13.30	%	CDI + 1.65%
-	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		34		34		68		550		-		-		-		68		618		13.40	%	CDI + 1.75%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		4,729		4,752		9,440		76,976		-		-		-		9,481		86,416		13.27	%	CDI + 1.62%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco BTG pactual S.A.		-		6,713		22,786		20,562		18,302		-		-		6,713		61,650		13.21	%	CDI + 1.56%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco Safra S.A.		-		13,988		12,628		11,311		-		-		-		13,988		23,939		13.20	%	CDI + 1.55%
-	Arauco Argentina S.A.	Brazilian real	Banco Industrial y Comercial de China		-		585		-		-		-		-		-		585		-		14.50	%	Fixed 14.5%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		-		602		-		-		-		-		-		602		-		15.00	%	Fixed 15.0%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		-		1,842		-		-		-		-		-		1,842		-		15.50	%	Fixed 15.5%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		953		-		-		-		-		-		-		953		-		15.50	%	Fixed 15.5%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		-		1,192		-		-		-		-		-		1,192		-		15.60	%	Fixed 15.6%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industrial y Comercial de China		608		-		-		-		-		-		-		608		-		16.00	%	Fixed 16.0%
-	Arauco North America. Inc.	U.S. dollar	Banco Itau Corpbanca - NY Branch		-		217,811		-		-		-		-		-		217,811		-		7.36	%	1.90% + Sofr 6m
			Total		79,443		458,281		386,720		495,127		107,752		73,577		72,803		537,724		1,135,979

December 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		Effective			Nominal
Tax ID	Name	Currency	Bonds		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-F		-		23,465		22,671		21,876		21,081		20,286		19,492		23,465		105,406		4.26	%		4.21	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-F		-		9,386		9,068		8,750		8,432		8,115		7,797		9,386		42,162		4.24	%		4.21	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-P		-		25,444		24,696		23,947		23,199		22,451		82,318		25,444		176,611		3.96	%		3.96	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-R		-		7,417		7,417		7,417		7,417		7,417		256,060		7,417		285,728		3.57	%		3.57	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-S		-		4,959		4,959		212,811		-		-		-		4,959		217,770		2.43	%		2.39	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-W		-		2,605		2,605		2,605		2,605		127,317		-		2,605		135,132		2.12	%		2.09	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-X		-		6,132		6,132		6,132		6,132		6,132		320,618		6,132		345,146		2.70	%		2.68	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-Y		-		2,558		2,558		2,558		2,558		2,558		92,093		2,558		102,325		3.10	%		3.08	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-Z		-		6,599		6,599		6,599		6,599		6,599		303,536		6,599		329,932		3.18	%		3.17	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.		Barau-AB		-		6,599		6,599		6,599		6,599		6,599		323,333		6,599		349,729		3.19	%		3.17	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar		Yankee 2024		11,250		511,250		-		-		-		-		-		522,500		-		4.52	%		4.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar		Yankee 2027		-		19,375		19,375		19,375		519,375		-		-		19,375		558,125		3.90	%		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		818,000		22,000		906,000		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		510,625		21,250		595,625		4.27	%		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		1,063,750		27,500		1,173,750		5.51	%		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		531,500		21,000		615,500		4.21	%		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		1,053,625		25,750		1,156,625		5.16	%		5.15	%
				Total		34,625		719,914		230,179		436,169		721,497		324,974		5,382,747		754,539		7,095,566

101

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

December 31, 2023				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		176		408		442		274		4		-		-		584		720
85.805.200-9	Forestal Arauco S.A.	U.F.	Lands		478		-		478		418		418		418		6,767		478		8,499
85.805.200-9	Forestal Arauco S.A.	U.S. dollar	Lands		60		180		240		240		240		240		-		240		960
85.805.200-9	Forestal Arauco S.A.	U.F.	Plants and equipments		510		1,189		2,078		2,081		1,750		1,750		1,021		1,699		8,680
85.805.200-9	Forestal Arauco S.A.	Chilean pesos	Plants and equipments		101		202		505		632		135		-		-		303		1,272
-	Arauco Argentina S.A.	U.S. dollar	Buildings and constructions		146		439		38		-		-		-		-		585		38
-	Arauco Argentina S.A.	U.S. dollar	IT equipment		5		9		-		-		-		-		-		14		-
-	Arauco Argentina S.A.	U.S. dollar	Plants and equipments		251		418		-		-		-		-		-		669		-
-	Arauco Argentina S.A.	U.S. dollar	Motor vehicles		585		1,004		498		165		-		-		-		1,589		663
-	Arauco Industria de Paineis S.A.	Brazilian real	IT equipment		4		13		12		-		-		-		-		17		12
-	Arauco do Brasil S.A.	Brazilian real	Buildings and constructions		56		8		-		-		-		-		-		64		-
-	Arauco do Brasil S.A.	Brazilian real	IT equipment		11		6		-		-		-		-		-		17		-
-	Arauco Celulose do Brasil S.A.	Brazilian real	Lands		11,308		18,810		24,625		26,022		25,990		27,219		442,609		30,118		546,465
-	Arauco Celulose do Brasil S.A.	Brazilian real	Buildings and constructions		18		55		73		12		-		-		-		73		85
-	Arauco Celulose do Brasil S.A.	Brazilian real	IT equipment		13		38		51		30		-		-		-		51		81
-	Mahal Empreendimentos e Participações S.A.	Brazilian real	Lands		1,106		1,573		2,679		2,679		2,679		2,679		24,114		2,679		34,830
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Buildings and constructions		434		1,302		1,735		1,735		1,735		1,736		-		1,736		6,941
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Motor vehicles		433		1,299		1,732		1,732		1,732		1,732		509		1,732		7,437
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Plants and equipments		1,003		3,008		4,026		4,040		4,055		4,070		56,456		4,011		72,647
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Motor vehicles		2,911		8,732		10,857		5,611		2,423		2,423		1,818		11,643		23,132
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Motor vehicles		42		103		90		27		-		-		-		145		117
-	Arauco North America. Inc.	Brazilian real	Buildings and constructions		481		1,209		1,199		1,442		206		226		270		1,690		3,343
-	Arauco Canada Limited	Brazilian real	Motor vehicles		17		53		51		55		40		-		-		70		146
-	Arauco North America. Inc.	Brazilian real	Motor vehicles		199		626		437		216		62		1		-		825		716
-	Celulosa y Energía Punta Pereira S.A.	Brazilian real	Plants and equipments		240		560		641		641		641		641		6,693		800		9,257
-	Eufores S.A.	Brazilian real	Lands		1,008		3,021		6,808		6,327		5,834		5,548		35,413		4,029		59,930
-	Eufores S.A.	U.S. dollar	Plants and equipments		306		917		917		1,222		1,222		306		-		1,223		3,667
-	Eufores S.A.	U.S. dollar	Buildings and constructions		87		108		111		152		158		163		648		195		1,232
96.510.970-6	Maderas Arauco S.A.	U.F.	Motor vehicles		9		19		6		3		-		-		-		28		9
76.879.577-0	E2E SpA.	Chilean pesos	Lands		107		321		-		-		-		-		-		428		-
-	TecVerde Engenharia S.A.	Brazilian real	Lands		-		-		143		-		-		-		-		-		143
-	Arauco Europe Cooperatief U.A.	Euros	Motor vehicles		8		23		23		13		8		-		-		31		44
-	Arauco Europe Cooperatief U.A.	Euros	Buildings and constructions		19		56		19		-		-		-		-		75		19
-	Araucomex S.A. de C.V.	Mexican pesos	Buildings and constructions		421		1,303		643		359		196		17		-		1,724		1,215
-	Araucomex S.A. de C.V.	U.S. dollar	Buildings and constructions		9		81		126		138		155		174		31		90		624
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	Motor vehicles		25		80		63		40		-		-		-		105		103
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	Buildings and constructions		34		107		157		175		78		-		-		141		410
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	Lands		1		4		-		-		-		-		-		5		-
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	IT equipment		2		5		4		-		-		-		-		7		4
-	Araucomex Servicios S.A. de C.V.	Mexican pesos	Motor vehicles		7		22		19		3		-		-		-		29		22
79.990.550-7	Investigaciones Forestales Bioforest SpA.	U.F.	Motor vehicles		3		2		-		-		-		-		-		5		-
			Total		22,634		47,313		61,526		56,484		49,761		49,343		576,349		69,947		793,463

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.

102

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Guarantees

As of the date of these consolidated financial statements, Arauco has financial assets of approximately MU.S.$ 64 that have been pledged to third parties (beneficiaries), as direct guarantee. If Arauco does not fulfill its obligations, the guarantors could execute the guarantees.

As of December 31, 2024, the total assets pledged as an indirect guarantee were MU.S.$ 366. In contrast to direct guarantees, indirect guarantees are given to secure obligations assumed by a third party.

Direct and indirect guarantees granted by Arauco:

DIRECT

Subsidiary

Guarantee

Assets

pledged

Currency

ThU.S.$

Guarantor

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.F.

697

Directorate General of Maritime Territory and Merchant Marine

Celulosa Arauco y Constitución S.A.

Guarantee letter

Chilean pesos

126

Directorate General of Maritime Territory and Merchant Marine

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.F.

352

Railways

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.F.

13,469

Sociedad Concesionaria Autopista Costa Arauco S.A.

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.S. dollar

4,920

Innergy Soluciones Energéticas S.A.

Madera Arauco S.A.

Guarantee policy

U.F.

2,278

Cermaq Chile S.A

Investigaciones Forestales Bioforest SpA.

Guarantee letter

Chilean pesos

213

Innova Chile

Arauco do Brasil S.A.

Guarantee letter

Brazilian real

417

Itaú Unibanco S.A.

Arauco do Brasil S.A.

Guarantee letter

Brazilian real

41,662

Itaú Unibanco S.A.

Total

64,134

INDIRECT

Subsidiary

Guarantee

Assets

pledged

Currency

ThU.S.$

Guarantor

Celulosa Arauco y Constitución S.A.

Full Guarantee. of Arauco North America. Inc.

U.S. dollar

210,000

Banco Itau Corpbanca - NY Branch

Arauco Celulose do Brasil S.A.

Endorsement of Arauco do Brasil S.A.

Brazilian real

16,416

Banco Safra S.A.

Arauco Celulose do Brasil S.A.

Endorsement of Arauco do Brasil S.A.

Brazilian real

58,405

Itaú Unibanco S.A.

Arauco Celulose do Brasil S.A.

Endorsement of Arauco do Brasil S.A.

Brazilian real

41,612

Banco BTG pactual S.A.

Arauco do Brasil S.A.

Endorsement of Arauco Indústria de Painéis S.A.

Brazilian real

5,114

Banco Safra S.A.

Arauco do Brasil S.A.

Endorsement of Arauco Indústria de Painéis S.A.

Brazilian real

34,050

Banco Safra S.A.

Total

365,597

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.

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CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

Sensitivity analysis considers a variation of +/- 10% of the exchange rate over the Chilean peso. This fluctuation range is considered possible given current market conditions as of the date of these consolidated financial statements. With all other variables at a constant rate, a U.S. dollar exchange rate variation of +/- 10% in relation to the Chilean peso would mean a change in the net income year after tax +/- 0.8% (equivalent to ThU.S.$ -/+ 4,027), and +/- 0.03% of equity (equivalent to ThU.S.$ -/+ 2,819).

Additionally, a sensitivity analysis is carried out assuming a variation of +/- 10% in the closing exchange rate on the Brazilian real, which is considered a possible range of fluctuation given the market conditions as of the date of these consolidated financial statements. With all the other variables constant, a variation of +/- 10% in the exchange rate of the dollar on the Brazilian real would mean a variation on the net income after tax +/- 0.3% (equivalent to ThU.S.$-/+$ 1,346) and a change on the equity of +/- 1.1% (equivalent to ThU.S.$ -/+$ 99,864).

23.10.4 Type of risk: Market risk – interest rate risk

Description

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

Explanation of interest rate risk exposure and how this risk arises

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

Explanation of risk management objectives, policies and processes, and measurement methods

Arauco completes its risk analysis by reviewing its exposure to changes in interest rates. As of December 31, 2024, 10.4% 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 +/- 0.4% (equivalent to ThU.S.$-/+ 2,132) and +/- 0.02% (equivalent to ThU.S.$-/+ 1,493) on equity. This analysis does not include borrowings with banks at variable rates for which Arauco mitigates the risk by contracting derivative instruments.

	December 2024 ThU.S.$		Total
Fixed rate		5,909,430		89.6	%
Bonds issued		4,717,676
Bank borrowings and others		463,764
Lease liabilities		727,990
Variable rate		687,259		10.4	%
Bonds issued		-
Bank borrowings		687,259
Total		6,596,689		100.0	%

104

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

	December 2023 ThU.S.$		Total
Fixed rate		6,639,075		94.1	%
Bonds issued		4,997,038
Bank borrowings and others (*)		1,082,655
Lease liabilities		559,382
Variable rate		416,396		5.9	%
Bonds issued		-
Bank borrowings		416,396
Total		7,055,471		100.0	%

(*)

Includes variable rate bank borrowings changed by fixed rate swaps.

23.10.5 Type of risk: Market risk – price of pulp risks

Description

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

Explanation of price risk exposure and how this risk arises

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

As of December 31, 2024, revenue due to pulp sales accounted for 52.4% 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 +/- 48.9% (equivalent to ThU.S.$-/+ 232,923) on the income for the year 2023 after tax and +/- 1.9% (equivalent to ThU.S.$ -/+ 163,046) on equity.

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CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 24. REPORTABLE SEGMENTS

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

Pulp segment

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

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

Arauco has 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 5.3 million tons per year. Pulp is sold in more than 45 countries, mainly in Asia and Europe.

Wood products segment

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

The Panels area produces a wide range of panel products and several kinds of moldings aimed at the furniture, decoration and construction industries, It consists of 20 industrial plants: 4 in Chile, 2 in Argentina, 4 in Brazil, 2 in Mexico, and 8 plants in the U.S. and Canada, The Company has a total annual production capacity of 7.3 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 1 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 2,400,000 m3 of sawn timber.

106

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

With 6 sawmills in operation (5 in Chile and 1 in Argentina), the Company has a production capacity of 2.4 million m3 of sawn wood.

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

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

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

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CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

	Pulp		Wood products			Subtotal Segments			Others			Corporate			Subtotal			Elimination			Total
Year ended as of December 31, 2024	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$

Revenues from sales of goods		3,299,128		3,115,981			6,415,109			-			-			6,415,109						6,415,109
Revenues from rendering of services		130,137		-			130,137			900			-			131,037						131,037
Revenues from ordinary activities		3,429,265		3,115,981			6,545,246			900			-			6,546,146						6,546,146

Revenues from transactions with reportable segments		486,399		15,388			501,787			62,721			-			564,508			(564,508	)		-

Finance income		-		-			-			-			66,355			66,355						66,355
Finance costs		-		-			-			-			(397,923	)		(397,923	)					(397,923	)
Net finance costs		-		-			-			-			(331,568	)		(331,568	)					(331,568	)

Depreciation and amortizations		484,953		190,767			675,720			2,423			7,808			685,951						685,951
Other income		193,369		26,784			220,153			377			376,531			597,061						597,061
Other expenses		99,503		76,765			176,268			1			35,944			212,213						212,213

Share of profit (loss) of associates and joint ventures accounted for using equity method

Associates		6,018		-			6,018			-			(28,668	)		(22,650	)					(22,650	)
Joint ventures		-		(24,017	)		(24,017	)		-			875			(23,142	)					(23,142	)

Income tax expense		-		-			-			-			(170,400	)		(170,400	)					(170,400	)

Profit (loss) of each reportable segment		482,213		296,667			778,880			(460	)		(302,139	)		476,281						476,281
Geographical information on revenues
Revenue – Chilean entities		2,601,740		1,133,259			3,735,000			900			-			3,735,899						3,735,899
Revenue – Foreign entities		827,525		1,982,722			2,810,246			-			-			2,810,247						2,810,247
Total revenues from ordinary activities		3,429,265		3,115,981			6,545,246			900			-			6,546,146						6,546,146

	Pulp		Wood products		Subtotal Segments		Others		Corporate		Subtotal		Elimination		Total
Year ended as of December 31, 2024	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$

Amounts of additions to non-current assets

Acquisition of property, plant and equipment and biological assets		977,878		233,144		1,211,022		1,275		16,595		1,228,893		-		1,228,893
Acquisition in subsidiaries, joint operations and contribution of investments in associates and joint venture		-		-		-		-		111,969		111,969		-		111,969

	Pulp		Wood products		Subtotal Segments		Others		Corporate		Subtotal		Elimination			Total
Year ended as of December 31, 2024	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$
Segment assets		13,715,757		2,964,938		16,680,695		55,208		1,483,836		18,219,739		(60,427	)		18,159,312
Segment assets (excluding deferred tax assets)		13,715,757		2,964,938		16,680,695		55,208		1,410,427		18,146,330		(60,427	)		18,085,903
Deferred tax assets										73,409		73,409					73,409

Investments accounted through equity method
Associates		41,352		-		41,352		-		35,430		76,782					76,782
Joint Ventures		-		211,345		211,345		-		118,484		329,829					329,829
Segment liabilities		1,323,157		417,149		1,740,306		34,968		7,660,323		9,435,597					9,435,597
Segment liabilities (excluding deferred tax liabilities)		1,323,157		417,149		1,740,306		34,968		6,190,811		7,966,085					7,966,085
Deferred tax liabilities										1,469,512		1,469,512					1,469,512

Geographical information on non-current assets
Chile		8,322,403		485,877		8,808,280		53,658		364,906		9,226,844		(7,016	)		9,219,828
Foreign countries		3,301,679		1,226,377		4,528,056		-		136,810		4,664,866					4,664,866
Total non-current assets		11,624,082		1,712,254		13,336,336		53,658		501,716		13,891,710		(7,016	)		13,884,694

108

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

	Pulp			Wood products		Subtotal Segments		Others			Corporate			Subtotal			Elimination			Total
Year ended as of December 31, 2023	ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$

Revenues from sales of goods		2,687,390			3,181,951		5,869,341		-			-			5,869,341						5,869,341
Revenues from rendering of services		113,520			28,335		141,855		623			-			142,478						142,478
Revenues from ordinary activities		2,800,910			3,210,286		6,011,196		623			-			6,011,819						6,011,819

Revenues from transactions with reportable segments		475,535			23,040		498,575		49,914			-			548,489			(548,489	)		-

Finance income		-			-		-		-			131,666			131,666						131,666
Finance costs		-			-		-		-			(373,496	)		(373,496	)					(373,496	)
Net finance costs		-			-		-		-			(241,830	)		(241,830	)					(241,830	)

Depreciation and amortizations		464,721			186,340		651,061		1,660			8,347			661,068						661,068
Other income		498,021			54,688		552,709		334			19,974			573,017						573,017
Other expenses		399,094			54,980		454,074		684			25,578			480,336						480,336

Share of profit (loss) of associates and joint ventures accounted for using equity method

Associates		3,084			-		3,084		-			906			3,990						3,990
Joint ventures		-			2,794		2,794		-			925			3,719						3,719

Income tax expense		-			-		-		-			27,293			27,293						27,293

Profit (loss) of each reportable segment		(182,369	)		371,015		188,646		(5,517	)		(541,656	)		(358,527	)					(358,527	)
Geographical information on revenues
Revenue – Chilean entities		1,929,554			1,145,647		3,075,201		623			-			3,075,824						3,075,824
Revenue – Foreign entities		871,356			2,064,639		2,935,995		-			-			2,935,995						2,935,995
Total revenues from ordinary activities		2,800,910			3,210,286		6,011,196		623			-			6,011,819						6,011,819

	Pulp		Wood products		Subtotal Segments		Others		Corporate		Subtotal		Elimination		Total
Year ended as of December 31, 2023	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$

Amounts of additions to non-current assets

Acquisition of property, plant and equipment and biological assets		1,109,609		137,867		1,247,476		251		15,322		1,263,049		-		1,263,049
Acquisition and contribution of investments in associates and joint venture		-		-		-		-		34,950		34,950		-		34,950

	Pulp		Wood products		Subtotal Segments		Others		Corporate		Subtotal		Elimination			Total
Year ended as of December 31, 2023	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$
Segment assets		13,864,686		2,967,646		16,832,332		16,480		1,135,689		17,984,501		(74,137	)		17,910,364
Segment assets (excluding deferred tax assets)		13,864,686		2,967,646		16,832,332		16,480		1,047,122		17,895,934		(74,137	)		17,821,797
Deferred tax assets										88,567		88,567					88,567

Investments accounted through equity method
Associates		34,558		-		34,558		-		65,248		99,806					99,806
Joint Ventures		-		215,322		215,322		-		108,483		323,805					323,805
Segment liabilities		1,170,684		392,104		1,562,788		47,487		8,291,060		9,901,335					9,901,335
Segment liabilities (excluding deferred tax liabilities)		1,170,684		392,104		1,562,788		47,487		6,747,436		8,357,711					8,357,711
Deferred tax liabilities										1,543,624		1,543,624					1,543,624

Geographical information on non-current assets
Chile		8,565,525		463,179		9,028,704		15,481		504,903		9,549,088		(6,668	)		9,542,420
Foreign countries		2,888,631		1,245,369		4,134,000		-		58,366		4,192,366					4,192,366
Total non-current assets		11,454,156		1,708,548		13,162,704		15,481		563,269		13,741,454		(6,668	)		13,734,786

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CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

	Pulp			Wood products			Subtotal Segments			Others			Corporate			Total
Year ended as of December 31, 2024	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Segment cash flows
Cash flows from (used in) operating activities		1,219,029			333,590			1,552,619			44			(371,346	)		1,181,317
Cash flows (used in) investing activities		(922,213	)		(105,488	)		(1,027,701	)		(6,611	)		705,339			(328,973	)
Cash flows from (used in) financing activities		(810,599	)		624,183			(186,416	)		1,522			(121,054	)		(305,948	)
Net increase (decrease) in cash and cash equivalents		(513,783	)		852,285			338,502			(5,045	)		212,940			546,396

	Pulp			Wood products			Subtotal Segments			Others			Corporate			Total
Year ended as of December 31, 2023	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Segment cash flows
Cash flows from (used in) operating activities		411,929			555,082			967,011			(4,106	)		(222,478	)		740,427
Cash flows (used in) investing activities		(1,096,743	)		(117,321	)		(1,214,064	)		(1,796	)		(117,264	)		(1,333,124	)
Cash flows from (used in) financing activities		713,838			(40,064	)		673,774			(6,483	)		(21,624	)		645,667
Net increase (decrease) in cash and cash equivalents		29,024			397,697			426,721			(12,385	)		(361,366	)		52,970

Information required by geographic area:

	Geographical area
	Local country		Foreign country
2024	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		3,644,478		486,079		591,342		1,047,672		459,464		186,074		6,415,109
Revenues from rendering of services		91,422		-		-		-		39,615		-		131,037
Revenues as of December 31, 2024		3,735,900		486,079		591,342		1,047,672		499,079		186,074		6,546,146
Non-current Assets at 12-31-2024 other than deferred tax		9,195,687		672,411		1,286,657		662,729		1,763,397		230,404		13,811,285

	Geographical area
	Local country		Foreign country
2023	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		2,998,896		570,933		586,512		1,057,027		449,316		206,657		5,869,341
Revenues from rendering of services		76,928		-		28,332		-		37,215		3		142,478
Revenues as of December 31, 2023		3,075,824		570,933		614,844		1,057,027		486,531		206,660		6,011,819
Non-current Assets at 12-31-2023 other than deferred tax		9,466,748		612,467		1,035,237		687,247		1,681,160		163,360		13,646,219

110

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

	12-31-2024		12-31-2023
Current non-financial assets	ThU.S.$		ThU.S.$
Roads to amortize, current		64,020		58,464
Prepayment to amortize (insurance and others)		36,800		14,001
Recoverable taxes (related to purchases)		146,774		167,086
Other current non-financial assets		13,498		703
Total		261,092		240,254

	12-31-2024		12-31-2023
Non-current non-financial assets	ThU.S.$		ThU.S.$
Roads to amortize, non-current		56,499		67,701
Guarantee values		2,676		3,391
Recoverable taxes		6,486		6,221
Other non-current non-financial assets		19,375		21,861
Total		85,036		99,174

	12-31-2024		12-31-2023
Current non-financial liabilities	ThU.S.$		ThU.S.$
Provision of minimum dividend (1)		114,359		2,283
ICMS, PIS-COFINS and other tax payables - Brazil		21,925		23,180
Other tax payable		23,093		19,118
Other Current non-financial liabilities		6,212		5,567
Total		165,589		50,148

(1)

In 2024 correspond mainly to the minimum dividend provision of owners of the parent company (see Note 26).

	12-31-2024		12-31-2023
Non-current non-financial liabilities	ThU.S.$		ThU.S.$
ICMS and other tax payable - Brazil		35,630		58,069
Other non-current non-financial liabilities		1,382		5,521
Total		37,012		63,590

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:

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.

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.

111

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

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

The policy currently in force, provides that an amount equivalent to 30% of the distributable net income for year 2024, 2025 y 2026 will be distributed. For subsequent years, an amount equivalent to 40% of the distributable net income of each year would be distributed. Nevertheless, the Board of Directors may decide to distribute and pay dividends to the shareholders, to the extent that it expects the year to finalize with positive results and that the Company’s liquidity allows such distribution and payment.

The following table details the adjustments made for the determination of distributable net profit as of December 31, 2024 and 2023:

	Distributable net profit
	12-31-2024 ThU.S.$			12-31-2023 ThU.S.$
Net profit attributable to owners of parent company		476,470			(358,560	)
Adjustments:
Biological assets
Unrealized gains (losses)		(159,021	)		(264,477	)
Realized gains (losses)		473,796			394,179
Deferred income taxes		(102,297	)		(37,394	)
Biological assets (net)		212,478			92,308
Distributable net profit		688,948			(266,252	)
30% in 2024 (40% in 2023)		206,684			-

Basic and diluted earnings per share

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

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

Profit or loss attributable to ordinary equity holder of parent		476,470		(358,560	)
Weighted average of number of shares		121,422,850		120,474,350
Basic and diluted earnings (loss) per share (in U.S.$ per share)		3.9240555		(2.9762352	)

112

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Consolidated financial statements

December 31, 2024

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

NOTE 27. EVENTS AFTER THE END OF THE REPORTING PERIOD

The authorization for the issuance and publication of these consolidated financial statements for the twelve-months period ended December 31, 2024, was approved by the Board of Directors of Arauco at the Extraordinary Meeting No, 730 held on February 26, 2025.

Subsequent to December 31, 2024, and as of the date of issuance of these consolidated financial statements, there have been no additional events, that could materially affect the presentation of these consolidated financial statements.

113

EXHIBITS

Exhibit		Description
99.1		Press Release Q4 2024

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: March 5, 2025	By:	/s/ Cristián Infante Bilbao
	Name:	Cristián Infante Bilbao
	Title:	Chief Executive Officer