Empresas Copec releases 2022 Integrated Report, says construction of 2.5 million-ton Sucuriú pulp mill in Brazil could begin in 2025, but Arauco still studying project; company approved plans to build 300,000 m3/year MDF line in Zitácuaro, Mexico

COMPANY

IDENTIFICATION

Integrated Report 2022

88th Edition

It contains information on the annual management of the Company for the period from January 1 to December 31, 2022 .

CHAIRMAN'S

STATEMENT

Dear Shareholders:

This first Empresas Copec Integrated Report allows me to give you a more complete and harmonious review of the 2022 fiscal year, covering matters that were previously reported separately in the Annual Report and the Sustainability Report.

2022 was a period of great uncertainty, marked by some scourges that a few years ago we thought had been overcome by history, a war in Europe , which shows no signs of truce and is dragging on beyond all forecasts; high global inflation rates, which have pushed interest rates upwards, causing financial turbulence with consequences that are difficult to measure; and a still simmering pandemic, the effects of which are still present, without fully restoring normality. An international context that is clearly challenging and continues to test the organizational structures that have been designed to deal with it, and which at the local level has been coupled by a high degree of institutional instability. Regarding the latter, there are signs of interest in achieving greater consensus in order to face the important pending challenges in social matters in the most appropriate way.

In this regard, before referring to the Company's activities, I would like to share with you a reflection, fruit of our entrepreneurial experience that spans over decades, regarding the deep process of institutional revision in which we are immersed in Chile . We have always felt called to build a better country and to be part of the solution to the legitimate social demands that have led this process. We see with optimism how the discussion has been moderating, making room for expert voices, and respecting certain basic frameworks of checks and balances, which are the legacy of our history and of a long and meticulous process of adjustment.

We deeply believe that we need a set of rules and policies that promote responsible agreements, based on evidence and rational discussion, with technical excellence and inspired by the common good. That is the best way to continue building a country where public policies endure and where everyone feels called to continue developing their life projects, putting all their capabilities at the disposal of a better shared future. We want to be part of the solutions and to be able to continue contributing to society.

Therefore, it is essential to leave behind logics that add nothing and to bet on a constructive and conciliatory discussion; with the necessary enthusiasm, but without ideological passions. Destiny has given us back a historic opportunity to forge the foundations for a better common future. An opportunity to regain respect and trust. Let's not waste it this time.

As for our businesses, and despite this context, in 2022 Empresas Copec achieved record performances in all its business lines, the best reflection of the resilience and adaptability of our companies. We obtained earnings of US$ 1.466 billion , which although US$ 315 million lower than those recorded in 2021, it should be remembered that the latter were strongly influenced by extraordinary and non-recurring effects associated with asset sales. Meanwhile, EBITDA, which is directly related to the cash generation capacity of operating activities, reached a record level of US$ 3.63 billion , 5.1% higher than in 2021.

These figures are a consequence of the favorable market conditions for all our forest products, especially during the first three quarters of the year, as well as the recovery of fuel volumes, in addition to the contribution of Mina Justa in its first full year of operation.

Total investment in 2022 reached US$ 2.359 billion , of which 97% was concentrated in the main businesses, the forestry and fuels sectors, an emphasis that confirms our permanent focus on natural resources and energy, laying the foundations for our future growth, within a long-term vision that has always been at the core of our way of doing business.

This investment effort encompasses numerous initiatives, details of which can be found in the different sections of this Report. I think it is important, to highlight the completion of the Arauco Plant Modernization and Expansion project, MAPA. This not only renews and increases the efficiency and productivity of the oldest facilities of our forestry subsidiary, in the heart of one of our main industrial complexes, but also increases the total pulp production capacity by more than 30%, and in an even more environmentally friendly way. A few days before the end of 2022, the new mill started up to produce its first bale of white eucalyptus pulp, and is now in

the process of ramping up to full capacity. This is a tremendous engineering project, with cutting-edge technology and state-of-the-art environmental equipment, of enormous importance for our country and the Biobío Region, involving resources around

US$ 2.359 billion , the largest investment in the history of Empresas Copec and one of the largest projects recently executed in Chile .

MAPA began to take shape more than a decade ago, and its development has required the harmonious contribution of men and women from the most diverse fields of knowledge. Engineers, scientists, technicians and specialists, as well as health professionals, made it possible to meet the enormous challenge of building, in the adverse scenario of the pandemic, with an unequivocal focus on the health and safety dimension. MAPA has been an important source of employment, and will continue to be so in its operation phase, demanding inputs from hundreds of medium and small suppliers, prioritizing local hiring, and promoting the creation of new forest mass, with the consequent contribution to carbon absorption.

The investment included the closure of line 1 of the Arauco mill's production line, the modernization of line 2 and the construction of the new line 3, with a production capacity of more than 1.5 million tons of pulp per year. It also includes a cogeneration plant which, in addition to supplying renewable energy to the new operations, will provide Chile with a surplus of up to 166 MW of electric power.

These substantial investments are necessary to maintain a scale that allows us to compete in the best possible way in a global market, against corporate giants from Scandinavia, Brazil , Canada , the United States , Russia , China , among other latitudes. It is exciting to see how our Company, and our country, have managed to occupy a privileged position in a highly competitive industry, with a challenging operation, highly sophisticated technology, whose products have relevant qualities in sustainability, and which today is internationally recognized as a fundamental contribution to the containment of climate change.

Looking ahead, our forestry subsidiary will continue to promote initiatives to respond to the vigorous growth in demand for forest products. In this regard, we have signed an investment agreement with the government of Mato Grosso do Sul, Brazil , a state that has received us enthusiastically, aware of the importance of this industry in terms of the generation of good quality jobs, environmental support and contribution to local communities. The agreement signed would cover the construction of a new pulp mill in that country. This project, called Sucuriú, is still under study and, if conditions allow, construction could begin in 2025. The plant would have a capacity of 2.5 million tons of short-fiber pulp per year and would be located 50 km from Inocência, in a place with multiple logistical advantages and excellent conditions for forest growth. With Sucuriú, we would expand our pulp production capacity by 50%.

In Mexico , in the area of panels, a project was approved to build an MDF line in Zitácuaro, Michoacán, which will add close to 300,000 m3 of production per year, half of which will be melamine-laminated.

This future operation, together with the assets of Maderas Arauco S.A. and ARAUCO's investments outside Chile , will remain under the ownership of ARAUCO Wood Limited , a company incorporated in the United Kingdom that provides us with a corporate platform in one of the world's main financial centers, facilitating access to capital for new projects to be developed in the future in a wide variety of geographies.

Sucuriú and Zitácuaro are part of a new investment cycle, corresponding to the next phase of development that we have been outlining. Because these are not only times of change for Chile and the world, but also for our company.

In this sense, and although the challenge of the energy transition extends far beyond our business borders, we feel called to assume a leadership role here, especially because of the privileged place and great positioning of our subsidiaries that participate in this business area.

Convinced of our crucial role in leading electromobility, Copec Voltex not only has the most extensive fast-charging network in South America , but is also the largest supplier of energy for electric buses in the world, outside China . In 2022, it was awarded the implementation of the largest electromobility project in the national mining industry. We are also leading electromobility in Colombia , Ecuador and Panama through Terpel, by installing the first chargers in those countries.

The developments we are making in electromobility led Voltex to be distinguished as one of the most innovative companies in the region. Likewise, Copec's innovative vocation has been rewarded for some of its participations as a strategic investor in start-ups with disruptive and diverse business models, through its venture capital fund Wind, located in Silicon Valley ; and its experimentation with new products

"IT IS EXCITING TO SEE HOW OUR COMPANY, AND OUR COUNTRY, HAVE MANAGED TO OCCUPY A PRIVILEGED POSITION IN A HIGHLY COMPETITIVE INDUSTRY, WITH A CHALLENGING OPERATION, HIGHLY SOPHISTICATED TECHNOLOGY, WHOSE PRODUCTS HAVE RELEVANT QUALITIES IN SUSTAINABILITY".