Empresas Copec's Corporate Magazine No. 116

EMPRESAS COPEC'S CORPORATE MAGAZINE SEPTEMBER 2024

NO.116

THINKING IN DECADES THE IMMEDIACY TRAP

DIVERSITY FOR BETTER GOVERNANCE

SUSTAINABLE PRODUCTS FROM THE ROOT

TEN YEARS ORCHESTRATING INNOVATION IN CHILE

PLANTING SCIENCE FOR FUTURE GENERATIONS

NO.116 Addressing major global challenges requires a long-term view that transcends temporal limitations and considers the well-being of future generations. #NoMoreShortTermism

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Editorial

General Interest

In his editorial “Doing business with the long-term in mind,” Eduardo Navarro, CEO of Empresas Copec, reflects on the need to raise our sights and think about the better society we want to leave to future generations.

In the column entitled “The immediacy trap”, Ignacio Briones, co-founder and chairman of the board of directors of Horizontal think tank, analyzes in depth the consequences of a short- term vision in the political and business spheres.

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Planting science for future generations TreeCo, a U.S. company acquired by ARAUCO in 2023, revolutionizes the forestry industry in the quest to generate trees that are more resistant to diseases and climate change.

The acquisition of the burger outlets was closed by the subsidiary, a new business aimed at improving the customer experience at service stations.

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Diversity for better governance

Sharing one conviction: #NoMoreShortTermism

Flip, the healthy snack that links academia with business

Seven directors of Empresas Copec and its subsidiaries shared their experiences regarding their role, how the companies have evolved and the importance of diversity for better decision making.

In line with its purpose, Empresas Copec launched a powerful 360° campaign to highlight the importance of a long-term vision that promotes the well-being of future generations.

Two years after its launch, Nutrisco's brand is already available in the most important supermarket chains in the country, successfully positioning itself in the food market.

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Details of the partnership between Copec and Streat Burger

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Copper, a key player in energy transition

Sustainable products from the root

A commitment to energy efficiency and transition

The mineral has become an indispensable material for the generation of cleaner energy and has an advantage, due to the maturity of its market, in the transmission and distribution of electricity.

ARAUCO is a key player as a supplier of raw materials to address the climate crisis and is driving new solutions in the areas of construction, packaging and apparel.

Abastible, ARAUCO and Copec are developing innovative initiatives to meet the new needs of their customers and, at the same time, accelerate the transformation to cleaner energy.

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Two decades making dreams come true

The “eyes of the forest” reach space

Driving Movement in Paris 2024

Ten years orchestrating innovation in Chile

Belén Educa Foundation, an institution that Empresas Copec supports since 2006, launched a new campaign to make visible its purpose of providing quality education in vulnerable sectors.

Lemu, a startup in which subsidiary ARAUCO has an 84% stake, has just put into orbit a pioneering device for observing and analyzing terrestrial ecosystems.

Copec consolidates its historical bond with national sports and its ongoing commitment to making new disciplines visible by supporting Team Chile in the Olympic Games.

The UC Anacleto Angelini Innovation Center celebrates its anniversary with a vision of the future and seeks to contribute to solving the challenges of humanity through the alliance between academia, the private and public sector.

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Summing it up Rodrigo Huidobro, Chief Financial Officer, analyzes Empresas Copec's results for the second quarter of 2024.

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DOING BUSINESS WITH THE LONG-TERM IN MIND

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Eduardo Navarro Empresas Copec CEO.

Those of us who have been involved in business for years, have seen how this activity has evolved over time.

In the past, it was thought that a successful company only needed to outperform the competition, adjust to changes in a globalized world and be agile to responde to the increasingly demanding expectations of consumers, through quality products and services. Today, the challenge is much greater, because any organization that seeks to transcend in time and give real meaning to its operations must have a purpose.

The concept of purpose, which goes beyond the traditional mission and vision, represents the “why” of a company's existence; it is its reason for being and should guide both strategic and operational decisions.

Thus, at Empresas Copec we have defined our raison d'être as “To shape the world for future generations.”

A statement that sounds ambitious, as any purpose should be.

A purpose that must guide our business decisions, as well as the way we relate to society. Historically, companies have communicated very well what we do. But today it is important to go a step further and also communicate our values, what we believe in. This is why we are currently promoting a campaign in different media, which we have called #NoMoreShortTermism, a mindset that we have identified as a silent enemy that is depriving so many children and young people of hope. Short-termism

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that prevents us from looking up and thinking about the better society we want to pass on to those who will come after us.

In this context, although many people have appreciated putting such a cross-cutting and relevant issue for the country on the agenda, there are also those who have expressed their curiosity about this roadmap. For some it is a somewhat abstract and ambitious idea. For us, however, it is something very specific and increasingly urgent.

As a society, we are still behind in the construction of consensus that will allow to project Chile into the next decades. And, in this scenario, it is important to be aware that the effects of imposing the short term on a vision of the future are serious and devastating: Climate change and loss of biodiversity; war conflicts and the arms race; relatively less emphasis on early education; democracies in crisis; social networks that promote positions based on superficial and incomplete information, and the progress of artificial intelligence without norms or regulations, are just some of them. That is why with this campaign we want to call, with optimism and enthusiasm, authorities and the business sector to dream together about the country we want to be in the future.

In times dominated by instant gratification, it may sound counter-current to put the focus on the long term. Although

It is important to be aware that the effects of imposing the short term on a vision of the future are serious and devastating. there are always immediate urgencies and needs, forcing us as a country to focus our priorities, we must never forget that our actions today will have an impact on the coming decades, even if we do not see their immediate effects. Because every person, family, organization and country must have a future project. And that forces us to change our perspective.

Thus, aware of the 90 years of history we are celebrating as a company, we seek to project the organization into the future as an active player in the construction of tomorrow's world, cementing from today projects whose fruits are intended to have a positive impact on the quality of life not only for us, but also for our children, grandchildren and future generations.

Throughout our history, we have been a company that thinks in the long term. Thanks to this, we have been able to overcome difficulties of all kinds: natural, political, economic and social, always thanks to a strategy and discipline that have looked to the future. Thinking in decades.

Along these lines, Empresas Copec's commitment to the development of Chile translates into several initiatives that we are designing and incorporating into our business strategy, with the aim of contributing to building a more sustainable world, always from our field of action: energy and natural resources.

In this regard, I would like to point out recent milestones that have precisely this forward-looking perspective. A few weeks ago, Abastible set a milestone by announcing its expansion to Spain and Portugal through the purchase of the liquefied gas distribution business of Compañía Española de Petróleos,

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Cepsa, one of the most important companies in the energy sector in that country and with a presence on five continents.

What did we see in taking this step? First of all, this transaction allows us to consolidate our position as one of the world's leading distributors of liquefied gas, a fuel that plays a relevant role in energy transition. In addition, a commercial partnership begins with a European company that is projecting an investment of nearly US$8 billion in green hydrogen, which is now acknowledged as a fuel of the future. This is not minor, considering that our country enjoys natural resources and competitive advantages that place it in a privileged position to lead the energy transition in the world, being this energy source essential to decarbonize the economy. Finally, we begin to “play” in an energy league with a more advanced development than in Chile and Latin America, which will allow us to incorporate a series of learnings and good practices that we will be able to implement in these markets.

Also with an eye into the future and with the idea of contributing in the long term, Lemu, an Arauco Ventures startup, recently launched into space the world's first satellite dedicated exclusively to biodiversity monitoring. Lemu Nge - which means “eyes of the forest” in Mapudungún- aims to verify territorial indicators, carry out conservation actions and restore ecosystems to help reverse the environmental crisis.

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ARAUCO's experience with Lemu is not the only one that allows us to take steps towards the world of tomorrow. It is worth remembering that a year ago, the forestry subsidiary acquired a majority position in TreeCo - a U.S. biotech company founded by two scientists from the University of North Carolina - which is developing a project based on AI technology that considers genetic optimization of trees and plants to improve their properties as a species, enhancing their water and CO2 capture capabilities and the quality of their fibers.

These are not isolated events. ARAUCO was the first forestry company in the world to be certified as carbon neutral, and its operations are key to fighting climate change, not only because of its nature - the planting of forests favors the capture of greenhouse gases - but also because it has made strong progress in the production of fibers and construction materials that make it possible to reduce and replace others that are less environmentally friendly.

Meanwhile, the subsidiary Copec has been taking firm steps in the development of electromobility in Chile. Today, its investment focus is on renewable energy, energy efficiency and sustainable mobility projects. Currently, Copec Voltex is the supplier of 50% of the electric public transport system in the Metropolitan Region.

In addition, it has sought to decentralize these developments, taking them to regions such as Antofagasta and Biobío. Recently, our subsidiary also took a very significant step in the energy

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At Empresas Copec we say with strength and conviction: no more short-termism. transition by announcing the first import of renewable diesel (HVO) into the country. This fuel emits up to 80% less greenhouse gases (GHG) compared to traditional fossil diesel, and represents a very relevant step forward in accelerating Chile's decarbonization process.

All these initiatives are based on a long-term vision, as well as on a firm commitment to the future of people, society and the countries where we operate. For this reason, at Empresas Copec we say with strength and conviction: no more short-termism. We owe it to future generations.

Let us recover the hope of children and young people. There is still time.

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Political or business actions that exacerbate the short term at the expense of the future blur hope for the future, feeding back into a vicious circle that ends up destroying it.

THE IMMEDIACY TRAP

By Ignacio Briones R. PhD in Economics from the Institut d'Etudes Politiques de Paris (Sciences Po); Commercial Engineer and Master in Economics and Political Science from Pontificia Universidad Católica de Chile. He was Finance Minister during President Piñera's second term and, prior to his appointment, Dean of Universidad Adolfo Ibáñez School of Government, where he is currently Professor and Senior Fellow. He has served as a company director, consultant and is co-founder and chairman of the board of Horizontal think tank. He also currently participates in Enseña Chile, as a volunteer mathematics teacher.

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that ends up destroying it.

Short-termism breeds more shorttermism. It is the immediacy trap.

Social networks and their contents appealing to our immediate emotions aggravate the problem. They are our main source of information, but it is fragmented and performative, dominated by the wedge rather than analysis. We spend about 2.5 hours a day on these platforms, twice as much among young people, which generates attentional deficit and orients our thinking towards the immediate, affecting our capacity for abstraction, indispensable for thinking ahead.

This conditions political and business proposals, which are adjusted to a presentist demand, reinforcing the immediacy trap.

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Ignacio Briones R. Former Finance Minister and co-founder and chairman of the board of Horizontal think tank.

But, in what sense should we speak of short-termism? How does it manifest itself in the public sphere, both in politics and in business? How can we avoid short-termism and the risk of the immediacy trap?

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1. How to discount the future?

People prefer $100 today over $100 tomorrow and $100 for sure than uncertain $100. This shows that we apply a discount rate to future rewards, which increases with uncertainty. Thus, discounting the future to some extent is not a bias or anomaly; it reflects risks, opportunity cost and the decreasing marginal profit of consumption.

The problem of short-termism arises when the discount rate is excessive, giving the present a disproportionate weight.

Short-termism, decisions focused on immediate benefits detached from their future consequences, is not only an individual problem, but a serious one at the collective level. Political or business actions that exacerbate the short term at the expense of the future blur hope for the future, feeding back into a vicious circle

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The problem of short-termism arises when the discount rate is excessive, giving the present a disproportionate weight. The challenge is to properly balance the present and the future. And that requires the virtue of prudence.

Squandering an inheritance today is as imprudent as living in misery to preserve wealth intact tomorrow.

Humans have an evolutionary bias toward the present, a trait inherited from our ancestors who lived in dangerous and uncertain environments. One of the first to identify it was Adam Smith, moral philosopher and father of modern economics. In his “Theory of Moral Sentiments” he argued that our capacity for empathy and moral judgment is limited by interpersonal and temporal proximity.

Smith described how sympathy (empathy), a feeling that invites us to put ourselves in the other's place, allows us to connect more easily

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with those close to us, while that connection is weakened with strangers and also with our own future self. We suffer from a myopia that privileges the present, as if the same person were a different and alien person tomorrow. For this reason, Smith says that “the pleasure which we are to enjoy ten years hence interests us so little in comparison with that which we may enjoy to-day (…) that one could never compensate for the other if it were not protected by a sense of correctness (…).”

To counteract this bias, Smith appeals to our reason -nothing less than what distinguishes us from the rest of the animal species driven merely by their instincts- through “correctness” or prudence and through the figure of an

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Short-termism breeds more short-termism.

It is the immediacy trap.

impartial spectator who dispassionately judges present and future.

An impartial spectator who “is not exhausted by the present efforts of those whose conduct he examines, nor is he required by the importunate calls of their present appetites. For him, his present situation and what is likely to be his future situation are almost identical.”

As is reflected in “The Wealth of Nations”, Smith understood first of all that combating the myopia of the present is also fundamental from an economic perspective. Without present sacrifice, without sympathy for the future, without savings and investment, no economic development is possible. Short-termism is the enemy of development.

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A recent example of a short-term policy is that of pension withdrawals, extremely popular in the short term, but which caused high costs in terms of inflation or interest rate increases. However, this short-termism of politicians motivated by their reelection cannot be understood without the massive support of their voters for the measure, which evidences one of the dangerous traits of populism: exploiting the impulse for immediate gratification, ignoring future consequences.

2. Short-termism in the public sphere: politics and business In the public sphere - political or business - short-termism can be amplified due to agency problems: agents inclined to decisions that privilege their short-term benefits, but negatively affect the principal (citizens or shareholders) in the long term.

Political short-termism The problem of dynamic inconsistency is inherent to politics. Politicians (agents) with a short planning horizon -the next election- have incentives to favor policies that are popular in the short term, but socially costly in the long term. And they avoid policies that entail short-term costs, but are socially beneficial in the future.

Short-termism also leads to delaying fundamental long-term reforms, such as investing in our school education or reforming the State and its obsolete administrative statute.

Politicians avoid these reforms because the costs, such as union conflicts and strikes, are immediate, while the benefits will be seen in the long term.

If dynamic inconsistency is inherent in politics, ours seems to exacerbate the phenomenon.

Much of politics seems more focused on Twitter, the wedge in the morning show or the daily controversy rather than on leading with a vision of the future. This obsession with the immediate, the lack of an ambitious vision of the future and of a national dream is inherent to the stagnation in which we have been immersed for a long time and from which it is urgent to get out.

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Short-termism and business Few issues better illustrate the duty to think about future generations than climate change and environmental challenges. It is a matter of intergenerational justice: just as it would be unfair to ignore the impact of our actions on other contemporaries, even if they are distant, it would also be unfair for the current generation, in search of immediate benefits, to pass on the net costs of its actions to distant generations in the future.

The difference between a rentier and an entrepreneur is that the former lives off the rents of his or her wealth, while the latter takes risks to build new wealth. This risk is called the future.

The long-term view is indispensable for value creation and economic development. The most extraordinary business innovations are inconceivable without a long-term perspective. The products that have had the greatest impact on our lives, from the first automobile to smartphones, have had behind them a dream and a commitment to the future.

If the company's goal is to endure, this is only possible by drawing up a sustainable roadmap anchored in a long-term mission and a series of intermediate objectives. In this sense, it must be concerned about both the short and the long term. It would be a bad company if it did not serve the needs of its current customers. But it would also be a bad company if it mortgaged its future for the sake of immediate profit.

The long-term view is indispensable for value creation and economic development.

As in the case of individuals, it is a matter of prudently balancing both temporalities and recognizing that the short-term view must be functional in the long run. It must be a link in a chain.

This is a shared challenge between politics and business, where the virtue of prudence is once again key. Its absence leads to two extremes: short-termism, which, like the heir who squanders his inheritance, only maximizes present profit without considering future consequences, and greed, which claims an untouched future at the expense of present well-being.

This prudence also implies a strong business ethic. The company serves and has relevant consequences on the collective. For a company to be sustainable implies internalizing that it has a primary responsibility to its environment and to current and future generations.

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short-termism:

Political short-termism: Agents have a short planning horizon and incentives to favor short-term popular policies that are socially costly in the long term.

Short-termism and business: The challenge lies in prudently balancing the present and the future while recognizing that the shortterm view must be functional in the long run.

To reclaim the future requires leadership capable to persuading others of the need to raise their sights. To create a wave of cultural change, both within the company and in society.

To get out of presentism, we need to convince that a promising future is possible, making visible its benefits and the costs of ignoring it.

Today we have a historic opportunity in the renewed advantages of our natural resources in the wake of the energy transition and the fight against climate change.

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3. How to avoid the immediacy trap?

To avoid the immediacy trap, the first thing to do is to reclaim the future. Although this may seem tautological, it is actually not: the fact that we have a presentist bias does not mean that everyone has it in the same way. Claiming the future requires leadership capable to persuade others of the need to raise their sights. To create a wave of cultural change, both within the company and in society.

In the company, it is vital to have shareholders (principal) who understand the importance of the long term and the responsibility of their companies to influence the present in order to build the future.

Boards of directors should explicitly mandate management (agent) to incorporate the long term in their management, including explicit rewards and incentives in its favor, instead of the tendency to overcompensate for short-term results.

In addition, it is essential to bring about a cultural change regarding failure. Long-term ventures are more difficult and riskier. Betting on them often implies failure. And if this failure is punished, instead of being recognized as intrinsic to building the future, only the short term will prevail.

Public policy needs to operate on several fronts to promote a long-term view.

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On the one hand, by measuring and showing the costs and benefits of our policies in the future. This is a necessary condition for raising awareness and bringing the future closer to citizens.

On the other hand, by modifying incentives to make future investment more attractive. On the economic side, by reducing uncertainty through a stable institutional framework with clear and predictable rules. At the same time, correcting externalities, eliminating obstacles and simplifying the tangle of permits that today are a tax on long-term investment, without giving up on demanding environmental and social standards.

On the social side, by promoting investments in human capital, especially in high quality pre-school and school education, essential for the deployment of talents and a society of opportunities. This must be accompanied by an adequate social safety net that encourages individual risk-taking in the construction of future life projects.

There is also an urgent need to reform our fragmented and shortterm political system to encourage collaboration and long-term agreements. The difficulty lies in incumbent politicians with little incentive to change the rules that affect them.

In addition, it is necessary to continue to make progress in unanchoring certain key long-term decisions from the political cycle through technical and autonomous institutions. Once again, the difficulty lies in finding players willing to give up power today for a future benefit.

These difficulties highlight the importance of visionary leadership focused on modifying short-term incentives and institutionalizing long-term decisions. But also capable of convincing citizens of the importance of such changes and motivating them to demand them from their representatives.

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taking its toll. This contrasts with the first two decades after the return to democracy, marked by a long-term objective and transformative reforms. It is crucial to recover that vision of the future.

4. Epilogue: the epic to dream again To get out of presentism, we need to convince that a promising future is possible, making visible its benefits and the costs of ignoring it. When we do not see the future, there are no expectations or life plans to forecast and it is only natural for presentism to prevail.

Perhaps the best way to value and make the future visible is through an epic and ambitious long-term dream that motivates citizens and generates hope. Changing their presentist preferences would also influence a political and business offer with a longer-term vision.

Today we have a historic opportunity in the renewed advantages of our natural resources in the wake of the energy transition and the fight against climate change. In addition to our mining industry, essential for the transition, we have enormous advantages in clean energy, forestry, agribusiness and tourism, among other areas.

Seizing this opportunity requires a state vision through a longterm development pact with ambitious goals and a regulatory environment that will attract the necessary multi-million dollar investments. And, to do so, we need a dream and an epic narrative that makes this opportunity visible as a source of pride and great wealth and future development.

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But none of this is possible without political and business players up to the task, capable of going against the tide, assuming costs and defying presentism. Players who are capable of proposing a roadmap for the future and guiding their stakeholders: citizens, consumers and workers.

Paternalism? No, just plain leadership. Leaders who, to paraphrase Oscar Wilde, look to the stars instead of staying in the sewer. Leaders who invite us to raise our eyes to the future, away from the immediacy trap.

For a company to be sustainable implies internalizing that it has a primary responsibility to its environment and to current and future generations.

For a decade we have had a stagnant economy and no structural, economic and social reforms that point to an ambitious long-term roadmap. Immediacy is 14

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empresas copec directors roundtable:

DIVERSITY FOR BETTER GOVERNANCE After four years holding this meeting online, this time the invitation was to meet again and talk face-to-face.

Empresas Copec's XVI Roundtable

Thus, seven directors of Empresas Copec and its subsidiaries shared their vision and experience regarding what it means to govern in such challenging times and where the diversity of views becomes a key value for decision making.

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Different views, better decisions According to an analysis carried out by the Chilean Institute of Directors, after the 2024 Shareholders' Meetings of the 29 firms that comprise IPSA, female participation was 21.8%, a very similar figure compared to the 21.2% recorded the previous year. This would indicate a stagnation in the increase in female presence on the boards of directors.

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Participants during the Roundtable.

The XVI Roundtable of Empresas Copec took place in the Board Room on the 17th floor of the corporate building, a space that brings together executives and employees of the Company and its subsidiaries, aiming to share views and reflections on current issues.

The meeting was attended by Maurizio Angelini, architect and director of Empresas Copec; Jorge Andueza, civil engineer and vice chairman of Empresas Copec; Carolina Altschwager, psychologist and director of Nutrisco; Marcela Bravo, commercial engineer and director of ARAUCO; Bernardita Figueroa, designer and director of Abastible; Lorenzo Gazmuri, civil engineer and director of Copec; and Juan Ignacio Langlois, lawyer and director of ARAUCO. The roundtable was led by Empresas Copec's Chief Communications Officer, Francisca Riveros.

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Lorenzo Gazmuri, director of Copec, agrees: “It has to be done by conviction, not by regulation.”

Juan Ignacio Langlois, director of ARAUCO, adds: “Rather than forcing a woman or a sociologist to join a board of directors, ideally, we, as a society, should be able to create spaces so that everyone can be where

In this scenario, the classic question arises as to whether or not it is advisable to promote quotas for female participation on boards of directors. On this point, the opinions of the participants varied.

Jorge Andueza, vice chairman of the board of Empresas Copec, said: “To me it seems that there are many reasons why diversity is a good thing. But I don't think it should be imposed. Women can achieve it on their own merits, they do not need an imposition to deserve everyone's respect and a position on boards.”

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Carolina Altschwager Director of Nutrisco.

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they do best and, by fulfilling their life plans, reach positions of leadership based on merit.

In this way, we would have the best people in the corresponding positions, according to their talent and the effort they have made in their lives.”

Nutrisco's director, Carolina Altschwager, states that, although the matter is in place and progress has been made, this has not necessarily taken place at the expected speed.

“I am not so much in favor of 50-50 quotas, but I believe that setting certain minimum standards is important to push the presence of women on boards of directors at a faster pace. Obviously, there are thousands of discussions on this issue, but if we agree that they should participate, then I think it is important to set goals and objectives."

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Directors agree on the importance of diversity and consider that it transcends gender, as different experiences and professions also contribute to better decision making.

opinion and adds that female presence on boards of directors has a multiplying value, even at a social level. “As long as there is no economic freedom for women, there is no real freedom, and it has been demonstrated that having female directors increases female participation in companies downstream. It generates more and better positions for women. In that sense, this is not an elite discussion, it is deeply social.”

Marcela Bravo, director of ARAUCO, emphasizes the value of diversity beyond gender, understanding the complexity of today's world, where different perspectives are required. “You have to look for a variety of visions, experience, training, etc. so that they can give you a perspective on new trends, new changes, on topics such as, for example, cybersecurity, artificial intelligence,

environmental, social and governance matters. Diversity generates conversations that otherwise would not exist.

A person may not even have a solution, but his or her contribution is to ask the right questions.”

In this regard, Empresas Copec's director, Maurizio Angelini, further adds: “The company has to adjust to a society that is becoming more and more diverse.

And when you are on a board where there is diversity, not only of gender, but also of professions, ages and experiences, and you listen to different opinions, you can make better decisions, more confidently and with greater conviction.”

Abastible's director, Bernardita Figueroa, shares Carolina's

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Juan Ignacio Langlois Director of ARAUCO. 17

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Companies evolve... so do boards of directors Lorenzo Gazmuri states that in today's unpredictable and changing world, companies are much more challenged.

“Before, you would make a decision at a board meeting and you could revisit it three years later. Today, that's impossible, because everything spins much faster.

On the other hand, the social impact of companies is much greater than we thought. Therefore, to think that we only impact our customers and collaborators...

Watch out, you impact thousands of suppliers, you impact communities. So, the contribution of the private sector has to go much faster, and I believe that this is the role of the board of directors.”

In this regard, Carolina Altchswager adds: “I believe that, as a country, we are also in a scenario, that is seen in indicators, where people have very little hope for the future. And in whom do they have hope? In companies, in other words, they can play a very important role in the way we look into the future. When Empresas Copec states its purpose, which is a tremendous challenge, it connects very well with today's needs.”

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Marcela Bravo shares Carolina's view and adds that the role of the board of directors is much more visible today. “There are expectations of the board's behavior, the decisions it makes, what it says, what it doesn't say, in addition to much higher legal requirements. It is a much more hands-on role, considering that the impact of companies on society is huge.

So, the expectations that companies, for example, help to solve environmental and social problems are very high."

Maurizio Angelini agrees on this point, saying: “I believe that the market and stakeholders demand increasingly higher

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In today's unpredictable and changing world, companies and their corporate governance are much more challenged. standards from corporate governance. And I also believe that they expect us directors to act with integrity and to make decisions with criteria rather than with knowledge.”

Juan Ignacio Langlois adds that, in recent years, compliance in boards of directors has also evolved. “We have to understand that large organizations have a strong impact on people and communities. So, what they are asked to do is to take charge and ensure that this impact is not negative. That is why you have to adapt, and you have to try for companies to be in places where, if they can avoid damage, they avoid it, and that is the best way to do it, by having good compliance programs, opening channels of complaint, etc.”

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The Economic Crimes Law (No. 21,595) came into force in August 2023, imposing greater requirements on legal entities and their internal compliance systems, as well as on company directors and managers.

Maurizio Angelini Director of Empresas Copec.

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In this regard, Langlois points out: “It is a law that is quite complex and imposes a lot of responsibility and, therefore, I think it has to be taken seriously. But, on the other hand, you should not to be paralyzed by it, you have to understand it and see how it affects you and make your objectives as compatible as possible."

According to the EY study “Priorities for boards of directors in Chile and the Americas 2023”, the five most relevant issues for corporate governance are: 1° Innovation and evolving technologies, 2° Regulatory developments, 3° Climate change and environmental protection, 4° Talent agenda, and 5° Geopolitical considerations.

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Jorge Andueza Empresas Copec’s Vice Chairman.

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On this matter, Bernardita Figueroa states that technology is no longer a technical issue, since today it has a profoundly strategic role. “Not only because it can affect the value proposition or how the company can be more efficient and reduce costs.

It goes far beyond that: technology even poses ethical dilemmas.

Artificial intelligence, for example, makes us question what we are going to take from it and what not; how far we leave our work in the hands of this technology; what limits we set for it; how it affects talent. So, nowadays a board of directors cannot stop talking about technology.”

Jorge Andueza, meanwhile, comments on point 4, about the Talent Agenda. “In all the years I have been in this Group, I have seen that there is an issue that has always been very important for corporate governance and that a director has always had and should always have in mind, as a priority and as one of his main concerns: people. The company is managed by people; there is no other more important resource for companies than their people.”

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The value of trust

Bernardita Figueroa Director of Abastible.

According to SOFOFA's Trust Barometer 2023, there is still a big difference between the trust that Chileans have in SMEs versus large private companies (58 points compared to 35 points, respectively).

About this, Jorge Andueza says: “I think we have to recognize that in Chile we have a serious problem of distrust, particularly towards entrepreneurs. Being an entrepreneur in our country, doing business, is frowned upon. This is not the case in other countries,

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Topics such as innovation, artificial intelligence, climate change and talent management are on the agenda of the Boards of Directors.

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According to Carolina Altchswager, who has closely followed this issue from her consulting firm Almabrands, that for the last 10 years has measured public trust in companies through the ICREO study, there are three main factors that today build trust in organizations and replace those that historically played that role, which were background, trajectory, experience and size.

“Variables more linked to the human relations that companies have with people started to raise with strength, such as transparency, which is not related to providing a lot of information, but rather to leaving the low profile and showing a little more: what they do, how they do it, how they

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Marcela Bravo Director of ARAUCO.

where you say what you do and they say 'oh, that's great'. Here, it's quite the opposite."

Marcela Bravo adds to this point: “Chile is an extreme case of distrust in all institutions and especially in companies, so it is important to study it, to understand how trust is generated, because distrust damages relationships and is expensive. When there is no trust you have to draw very complex

contracts, regulations arise and that goes against development. It is much more cumbersome.”

Juan Ignacio Langlois agrees: “It's just that trust is too profitable, because otherwise the transaction costs are so high that it just can't be done. It's like, if instead of 10% of the people lying, 60% would lie.... You wouldn't be able to do anything.”

On this point, Lorenzo Gazmuri states: “Consistency between what you say and what you do is key."

According to the 2024 Trust Study, carried out by PwC and UDP, 87% of consumers say they have faced an event that damaged their trust and affected their relationship with the company.

_ summary video of directors roundtable.

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manage talent, how they relate to the communities, what contribution they make to society, etc.

Companies that are better known tend to build more trust. A second factor is responsibility, that is, to deliver on my promises, and if I do badly, I take accountability. And the third is genuine concern for people's interests, which is where there are often gaps, because citizens feel that companies act in their own interests and not in theirs."

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things well and that its contribution is tremendously relevant to the well-being of people, communities and countries.”

Bernardita Figueroa further adds: “Trust is not only built from the statement, but also with specific actions that allow to materialize it. For example, when at Abastible we stated that our purpose was to promote entrepreneurship, we made a commitment to pay suppliers within seven days. And we hope that other companies can also join this initiative.”

Lorenzo Gazmuri comments: “This example is interesting, because you might think that this is just goodism, but no, it is also business. That multibrand distributor who knows that by selling an Abastible tank instead of a competitor's, he or she receives a payment in seven days instead of 30 days, of course they will choose to sell the Abastible one. Therefore, this strategy ends up being good for the distributor and for the company. It is a virtuous circle."

In this regard, Marcela Bravo adds: “Clear communication is the element that generates the most trust, both with clients and employees. But sometimes communication is not something we have been particularly good at, perhaps out of fear, thinking that the less we say, the less they attack us. But, on the other hand, the less they know us, and if they don't know us, they don't trust us.”

Lorenzo Gazmuri adds: “Brands are synonymous with trust. In other words, why do I go into a Copec and not the station across the street?

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Lorenzo Gazmuri Director of Copec.

Because I trust them. So if that starts to break down, it is structural.”

Maurizio Angelini adds: “I think trust has many dimensions. There is one that is like the basic one: 'I go to Copec because I know them. And then comes a more complex one that comes from the good or bad experience you have when you go to that Copec and its ability to respond to any problems you may have had. What is important, I think, is to understand and take responsibility of all the dimensions of trust. And, in this context, I believe that if you engage in good corporate governance, act ethically and communicate transparently, this will undoubtedly translate into greater trust in the company.”

Jorge Andueza says: “And not only from our customers' perspective, but also with our collaborators, suppliers and society in general. We have to be able to generate trust by demonstrating that the company tends to do 21

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what is the most rewarding and the most challenging part of being a company director?

MARCELA BRAVO DIRECTOR OF ARAUCO

“The most challenging part is to make a contribution in those issues that the company requires from you and, therefore, prepare yourself properly, raise relevant issues, be a real contribution. And the most entertaining part is, given that you are not involved in the dayto-day, to have an overall vision from above, to be able to look up, to be able to connect it with other opportunities, to be able to look strategically at other contexts, other markets.

And to do so on the board of ARAUCO, one of the largest forestry companies in the world, a tremendous company, is a real source of pride."

JORGE ANDUEZA EMPRESAS COPEC’S VICE CHAIRMAN

“For me, Empresas Copec is more than a company, it is a Group, and I feel that I have a tremendous responsibility to it and, therefore, I do my best to deserve the trust they have placed in me. I devote myself to that with a lot of effort.

At the same time, it is very gratifying to be able to contribute from the company to the well-being of people, employees, suppliers, customers and communities. I work for them."

LORENZO GAZMURI DIRECTOR OF COPEC

“I think the challenge is how to continue contributing in an industry that is very challenged and how to separate emotion from rationality.

Because it is not the same as being on another board, where you say: 'I have to learn about this industry that I don't know. I do know this one, but it is very different to be a director than to be a CEO and, therefore, you have to take the time to study and learn. And it is very challenging, because I have to show how I can make a contribution, what is my differentiating element here, and it is not only your experience, but also the view of what is to come, in such a complex world. I think we are living a very exciting moment of humanity and, therefore, to be there is a grace. A gift."

CAROLINA ALTSCHWAGER DIRECTOR OF NUTRISCO

“I think the biggest challenge has to do with being able to make a contribution from the conversations, the questions, the view, and finding the right place where one is a director, which is not the same as being an executive or a consultant. It is about having the knowledge of the company and also having your eyes sufficiently open and well trained in the issues that are to come and, therefore, to be continually learning in order to be able to make a contribution. And the most gratifying thing about being part of a company as big as Empresas Copec is that you can see the impact of the businesses and how they transform, grow and expand.”

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The directors highlight the challenges and satisfactions of their position.

BERNARDITA FIGUEROA DIRECTOR OF ABASTIBLE

MAURIZIO ANGELINI DIRECTOR OF EMPRESAS COPEC

“The most challenging thing, besides being a contribution to the company, is to be able to adapt to change, to be flexible and try to transfer this to the company. And the most gratifying thing for me is to be able to contribute from my own experience, as an architect, which is not directly linked to business. Also, being part of the board of a company like Empresas Copec, whose impact on society is so great, is very gratifying. I contribute from the board with a bit of sand, but those who finally execute it, make it real and multiply it, are the collaborators.”

JUAN IGNACIO LANGLOIS DIRECTOR OF ARAUCO

“The great challenge I have is to be a contribution to the board. And the most gratifying part is the personal relationships that you build, because at the end of the day you get to know people and hear opinions that are very interesting. You learn a lot from what the other person thinks and how they think. So, I would say that that is the most attractive thing. And that only happens when the boards are well constituted.”

“The most gratifying thing, from a personal dimension, is that I have learned a lot and I have been fortunate to be at the table with brilliant and generous people. Every time I go to the board of Abastible, I learn everything from chemistry and gas molecules, to supply, distribution, safety, community relations, etc.

From a broader dimension, I am absolutely in love with the gas industry, what it represents for Chile, for families and entrepreneurs, and the potential it has in energy transition. And the most challenging thing, I'll admit it: being a woman, a designer and having joined Abastible when I was 34 years old has made me feel the symbolic weight of representing diversity and inclusion in the board of directors.”

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empresas copec:

SHARING ONE CONVICTION: #NoMoreShortTermism This campaign seeks to make a cross-cutting call to discuss and reflect on short-termism, one of the great evils of today's society.

In line with its corporate purpose “To shape the world for future generations,” the Company launched a powerful 360° campaign that seeks to highlight the importance of a long-term vision that ensures the future well-being of children and young people.

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The scene of a child playing quietly in a park in Santiago is abruptly interrupted when sand begins to fall from the sky.

This is the beginning of the muchtalked-about advertising spot launched

by Empresas Copec at the beginning of July. A spot that does not talk about the Company, or its subsidiaries, or the products or services they offer, but about a conviction: “Short-termism is leaving future generations hopeless, but we still have time to turn this mindset around. Together we can do it."

Empresas Copec's Chief Communications Officer, Francisca Riveros, says that those who have seen the spot have not been untouched.

“You may or may not like the spot, but what is certain is that it provokes, moves, impacts. And that is what we were looking for."

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What is short-termism and why is it so important for Empresas Copec? According to the website especially created to disseminate this message, it is a mindset that prioritizes immediate profits over long-term wellbeing, compromising the foundations of a sustainable and prosperous future for humanity. María Luisa Vicuña, a partner at Parrhesia, the consulting firm that has advised Empresas Copec throughout this process, explains why it is so relevant for the Company: “In order to define a shared purpose, it is essential to ask ourselves:

A silent enemy “To shape the world for future generations” is the purpose redefined by the Company in January 2024. Francisca Riveros shares that “when carrying out the process of rediscovering our corporate purpose, we committed ourselves to continue developing our company thinking not only of the current benefit, but also, and with special emphasis, of the future impact. This is a role that is relevant to us as one of the largest business groups in Chile, but where the academic, the political and the economic world also play a very relevant part. In this sense, the #NoMoreShortTermism campaign seeks to make a cross-cutting and compelling call to discuss and reflect on short-termism, one of the great evils of society and which we have defined as a silent enemy.”

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Francisca Riveros Empresas Copec Chief Communications Officer.

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María Luisa Vicuña Partner at Parrhesia.

this idea in a broader spectrum, mainly to decision-makers. Thus, from a communication point of view, we took a very important step: to disseminate what we believe in, our values and convictions as Empresas Copec.”

According to the Brands and Marketing Magazine of the National Association of Advertisers (ANDA for its acronym in Spanish), through its close relationship with the World Association of Advertisers (WFA), this type of advertising strategy is something that is being considered by large companies around the world. In Chile, Empresas Copec is leading the way with the campaign #NoMoreShortTermism.

what is happening in the world, in society, what do we want to change? What is the problem we are trying to transform?

During the discussion, it strongly came up the fact that the Company had a deeprooted long-term vision and culture, and this was identified as a core value to achieve the purpose. From there came the definition that the short-termism currently present in the society is one of the problems we want to reverse.”

In this regard, María Luisa Vicuña states: “If we believe that the company fulfills a social role, the defined purpose must be shared, so that the problem that the Company considers important to reverse is also relevant for society. It is essential to generate this bond and communication is key to achieve this empathy and connection.”

The first milestone of the 360° campaign was a well-commented editorial by Empresas Copec's CEO, Eduardo Navarro, titled: “Let’s go against short-termism, a silent enemy,” which was published in the latest edition of the Empresas Copec Corporate Magazine, and replicated in several media such as Diario Financiero and La Tercera. In addition, its reading rate reached an all-time high in the web version of the Magazine.

Francisca Riveros says that short-termism is an evil that, as a society, can only be addressed collectively and collaboratively: “That is why we decided to disseminate 26

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The hourglass symbol To conceptualize the idea of short-termism, advice was sought from experts in the field. Tony Sarroca, partner and creative director of Simple agency, who has created renowned campaigns, accepted the challenge of proposing how to convey the idea of short-termism: “We needed to create an impact, something that would make people uncomfortable, that would not leave anyone indifferent, that would shake and convince

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Nicolás Postiglione Director of the production company Fábula.

them that the short-termism attitude must change. There was no other way to do it, it had to be done in this way to open the doors to a conversation on the matter. If we had done it in a traditional way, the problem would still be part of the landscape,” he says.

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Tony Sarroca Partner and creative director at Simple.

For Tony Sarroca and his team, the period of reflection and search for an icon to represent the #NoMoreShortTermism message was very “difficult and challenging”. However, after several conversations they agreed that the “passing of time” is what makes short-termism despicable. “After much thought, we concluded that the hourglass clearly represented what we wanted to say. It is a universal element, where time passes, but where there's also the option to turn it around and let it start again. It represents opportunity. We linked this with

the children and future generations, who need just that. The problem is something that is pressing, but in a space where something can still be done. There is hope,” reflects Sarroca, who was also responsible for the script of the advertising spot.

For the execution of the audiovisual piece, the production company chosen was Fábula, locally and globally renowned for winning the Oscar for Best Foreign Film in 2018 with “A Fantastic Woman” and for having also been nominated for two Academy Award in 2024 for Best Documentary with “La Memoria Infinita” and Best Cinematography with “El Conde.” Nicolás 27

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#nomoreshortermism

campaign

Target audience: decision-makers.

360º

Objective: To raise the issue of short-termism on the public agenda.

Campaign on: television, digital media, social networks and written press. Coming soon, on radio and public roads.

The actions seek to make visible the importance of a long-term view to ensure the well-being of children and youth.

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Postiglione, director of the spot, says that “this project had a narrative challenge, because we had to find an entertaining way to tell it visually. For this, we used artificial intelligence to create specific images, since there was an important surrealism in the subject. On the other hand, there were technical challenges, from getting a special effects specialist to make the sand really fall, to finding a child in the right age range and with the right characteristics. In this case it was twins, to make it easier for the young actors to rest. Finally, we tried to create an audiovisual piece that would have an impact, which was easy to achieve, because we are comfortable with getting into areas where there is tension and suspense."

Regarding the distinctiveness of the message, compared to traditional advertising, Postiglione comments: “I understand that brands want to communicate through

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The 360° campaign has been broadcast on television, digital media, print media and social networks. New media will soon be added: public roads and radio.

this type of emotions. Many awareness campaigns are provocative, but that is because the truth behind the message is worrying and this is exactly the case here: short-termism has really negative consequences, much more than what is seen in the ad. I wish more brands could join the line of awareness, of really taking charge of the impact they generate in society. In that sense, my congratulations for taking the risk and putting your chest in front of the bullets.”

Footage from the spot's filming.

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In addition, the Chief Communications Officer explains that, in the context of this campaign, the most important thing for Empresas Copec is to be consistent: “There must be coherence between what we say and what we do. We want, as a Company, and together with our subsidiaries, to continue generating development, well-being and prosperity in our surroundings. In this line, we express our commitment to promote the development of our company thinking about the future benefit it will have for the generations to come. At the end of the day, we want to be a good ancestor,” she concludes.

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In this first stage, the advertising spot has already been seen on different television channels, on YouTube and through campaigns on websites and social networks.

In addition, the Company launched a mini-site, graphics designs in print media and, soon, public road advertising and radio will join.

An invitation to reflect and act Making the problem visible and calling for action is only the first part of the work being done by Empresas Copec in this matter. Francisca Riveros explains: “We have to give this message time. Empresas Copec will be persevering in this regard, because there is a conviction, a belief. We want people to talk about short-termism, we want others to join in and generate spaces for reflection and conversation on this topic.

Only then will we move on to action. And that is a long-term task."

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Campaign in public road advertising.

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Flip is not only revolutionizing the snack category, but is also a success story of collaboration between academia and business.

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nutrisco:

FLIP, THE HEALTHY SNACK THAT LINKS ACADEMIA WITH BUSINESS Sales of this brand began in December 2022, after the inauguration of its first industrial plant in Santiago, beginning its participation in three channels: food services, traditional and e-commerce, through the online store “La mesa de todos.”

Just two years later, the brand already has presence in the most important supermarket chains in the country, such as Walmart and Tottus, and will soon be in Cencosud.

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Flip is a call to think things differently and to give a twist to the snack market. These are chips created from potatoes or other vegetables and fruits, which break into the food category with unique qualities.

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For the professor, the challenge was not only to achieve a healthier product, but also a richer and more attractive one, and one that would be in tune with consumers, because “even the most nutritionally conscious person is not willing to sacrifice pleasure when it comes to eating,” says the scientist.

Their differentiating value is not only delivered by their crunchiness, rich flavor and colorfulness true to the raw material, but in contrast to what happens with traditional potato chips, these chips retain 90% of their nutrients, have up to 65% less fat and up to three times more protein than other competing products.

How is this possible? Flip was born from a research work of more than two decades, when the academic and current Research Vice Rector at the Pontificia Universidad Católica de Chile, Pedro Bouchon, was doing his doctorate at Reading University, in England. It was in this institution, well known in food sciences, where he began his foray and study on frying and how to reduce its absorption of oil.

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“Chile should move towards a knowledge economy, because we must work not only thinking about the present, but also about the future,” says Bouchon.

Pedro Bouchon Research Vice Rector at the Pontificia Universidad Católica de Chile.

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Flip's industrial scale-up began in 2020, with the entry of Nutrisco, a subsidiary of Empresas Copec that seeks to generate a positive impact on people's lives through a sustainable nutrition model.

From research to business and to the dinner table Flip is not only revolutionizing the snack category, it is also a success story. It is an example of how research born in a laboratory can reach the market.

According to Bouchon, the project began to scale up progressively when it was awarded a Copec-UC Foundation fund for applied research in 2007. This allowed him to take the laboratory prototype, financed through a Fondecyt project, to the development of a much larger pilot plant. Subsequently, he obtained a Corfo project together with Dictuc, which allowed him to perfect the plant and establish the basis for further scaling up. These contributions were complemented by the

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support of the UC's Transfer and Development Department, which enabled him to protect this Chilean technology as a trade secret. In 2014 he was able to obtain capital for commercial testing in Chile and the United States and to implement an initial marketing and positioning strategy.

But its arrival to the market took several more years. Its industrial scale-up began in 2020, with the entry of Nutrisco, a subsidiary of Empresas Copec that seeks to generate a positive impact on people's lives through a sustainable nutrition model.

Previously, the academic went through a long development and learning process, which he himself describes as “slow, but very fruitful,” automating processes, improving the control of variables and carrying out international product testing. “This process allowed me to arrive at the conversations I had with Nutrisco, with a clear value offer and the necessary credentials to generate the confidence that it was possible to move this project forward together.”

For Pedro Bouchon this story is a tangible and real testimony that it is feasible to leverage resources from the industry, but also of the difficulty in transferring applied research to the market and the need to reverse the low investment in science, innovation and technology in our country.

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flip:

Chips created from potatoes or other vegetables and fruits.

Their differentiating value is delivered by their crunchiness, rich flavor and colorfulness true to the raw material.

90%

65%

Nutrient conservation.

Less fat.

3 TIMES More protein than competing products

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“70% of research and development budgets come from the State and only 30% from the private sector, a figure that should be exactly the opposite, as it happens in developed countries. Chile should move towards a knowledge economy, because we must work not only thinking about the present, but also about the future,” he adds.

Emeterio Ureta, Business Manager of Nutrisco's Snack Division, agrees on the importance of promoting this synergy between academia and business. “If this link is not established, many innovations fail to scale or be launched to the market, and remain only in the research stage. Flip is an example of how an innovation arising from academic research can be successfully transferred to the market and Nutrisco has enabled the development of this strategic plan.”

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Emeterio Ureta Business Manager of Nutrisco's Snack Division.

Innovation with impact on well-being and sustainability _ in the photo:

For Nutrisco, Flip plays a relevant role, as it is aligned with its purpose of producing and marketing foods that improve people's quality of life in a sustainable way.

Flip display at Nutrisco Market, located in the subsidiary's distribution center in Quilicura, Santiago.

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For Nutrisco, Flip plays a relevant role, as it is aligned with its purpose of producing and marketing foods that improve people's quality of life in a sustainable manner.

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Sales of this brand began in December 2022, after the inauguration of its first industrial plant in Santiago, beginning its participation in three channels: food services, traditional and e-commerce, through the online store “La mesa de todos” (Everyone's table). This year, the brand entered the modern channel and it already has presence in the most important supermarket chains in the country, such as Walmart and Tottus, and will soon be in Cencosud.

“The modern channel accounts for 70% of sales and, therefore, including it is a relevant milestone for our growth. The commercial strategy considers including new products, varieties and flavors in this channel, always positioning the customer at the center, understanding the attributes that move the consumer and taking innovation and technology as our differentiating tool,” says Ureta.

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Although potato chips are the “flagship” product, the idea of revolutionizing this category has led them to apply this technology to different types of food, such as carrots, sweet potatoes, beets and apples, adding mixes and different seasonings, such as basil, merken, garlic and sea salt, among others.

According to the executive, it has been growing at an average rate of 10% (year on year) over the last five years and Flip's results have been in line with this trend.

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2022

2023

2024

2025

2026

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127

533

1,066

2,132

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11,1

39,7

79,5

159,0

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Flip sales forecasts

Million CH$

Tons of chips Figures provided by Nutrisco team.

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arauco and treeco:

ARAUCO is betting on an innovation that promises to change the future of the forestry industry, making it more sustainable and thus improving the quality of life of future generations.

PLANTING SCIENCE FOR FUTURE GENERATIONS In 2023, ARAUCO invested nearly US$50 million in TreeCo, a company that uses CRISPR genome-editing technology in trees, with the aim of making them more sustainable and changing the fate of forestry worldwide.

The two companies are now working hand in hand to achieve this goal.

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The idea is planted TreeCo is currently located in the laboratories of North Carolina State University (NCSU) and, as of September 2023, ARAUCO became its majority shareholder, with an investment of approximately US$50 million. This is a bet on an innovation that promises to change the future of the forestry industry, making it more sustainable and thus improving the quality of life of future generations.

In June 2018, Jack Wang and Rodolphe Barrangou, cofounders of TreeCo, met for the first time. They remark that while it was difficult to match their schedules, when they managed to get together there was instant chemistry. “It wasn't in a series of meetings. It was one single event, one single gathering, where there was kind of a meeting of the minds,” Barrangou recalls, adding: “On that particular day, a grand vision to address those grand challenges faced by the forestry industry was born. There was a sense of clarity in defining a vision, achievable by combining our skill sets, knowledge, expertise, passion, and aspirations. It just clicked.”

_ in the photo: Trees that are more resistant to disease and climate change, whose growth processes are more efficient and that provide a raw material that allows to produce more pulp per cubic meter of wood. More sustainable trees that would change the forestry industry forever.

In the United States there is a group of scientists working to produce them: TreeCo, a company that is modifying the genetics of trees with CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) technology, which allows the genome of living organisms to be edited in a non-transgenic way.

“We're going to impact on billions of people.

It's literally everybody on planet Earth, plus the next hundred million who will be born,” says Barrangou.

Rodolphe Barrangou TreeCo Co-founder.

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Wang expressed his opinion about current problems of forest companies and how, although the knowledge in genetics existed, to date there was no technology to apply the findings in a meaningful way in this industry.

“Rodolphe brought insights from other disciplines, his experience, his knowledge, his entrepreneurship, and really opened my eyes to things that I didn't know existed, or things I didn't know was possible. So, we connected the power of CRISPR genome editing with tree genetic insights,” says Wang.

And so, in just one hour, the two agreed to start working together on what would later become TreeCo. However, although this was its formal beginning, this story had been years in the making for its main players.

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Partners Building II, on North Carolina State University's Centennial Campus, where TreeCo's laboratories and greenhouses are located.

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Jack Wang considers himself a forester since he was born: “My dad, back in Taiwan, was a professor of forest pathology, who went to New Zealand. He was managing one of the largest radiata pine seed orchards over there.

I grew up in his laboratory, so I'm immersed in forestry activity all day, every day, and when I graduated from college, it was very natural for me to go into a laboratory that worked on forestry

The forester and the pioneer

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Jack Wang TreeCo Co-founder.

“Jack has what I call the wisdom of the forest.” This is how Barrangou describes his colleague, highlighting his temperance and intelligence in facing the challenges of running a science and technology-based company. “He's very driven, he's very ambitious, and he's very smart and very sharp. He has the wisdom and the patience to do what it takes, one step at a time, one year at a time, one problem at a time. And I like his long-term tenacity and vision to run the marathon that we have to go through to be able to work in forestry,” he adds.

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and forest genetics.” Thus, he moved to the United States for his doctorate and postdoctoral studies at NCSU, a world leader in forest genetics and biotechnology, where he later took on the role of professor and entrepreneur.

“For me, I'm like a CRISPR pioneer,” says Rodolphe Barrangou. He has been involved in this technology since very early in his career, being involved in the first patent, the first big document and the first product. In addition, he has been a great collaborator of Jennifer Doudna, 2020 Nobel Prize in Chemistry, awarded for her findings in this innovation.

He is also an outstanding entrepreneur with multiple patents to his credit, converging in him the qualities of an outstanding scientist and those of a skilled entrepreneur with a developed commercial

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“We were interested in being more than a strategic partner, we wanted to invest in TreeCo,” says Balocchi.

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instinct. “He is a problem solver like I've never seen before,” says Wang, who adds: “It is not trivial whatsoever taking a good innovation, but making real-world impact from it, that is where most scientists fail, but Rodolphe has repetitively been successful in democratizing innovations like CRISPR through all different fields, from therapeutics to agriculture, and now, of course, in forestry.”

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Claudio Balocchi Senior Researcher in Genetics at ARAUCO’s Bioforest and director of TreeCo.

The branches grow When TreeCo started up, they had broad support from NCSU, but they knew they needed a major industry partner with forestry knowledge who could take the innovations and deploy them on a significant scale.

“Rodolphe asked me, out of all the forest companies we've ever worked with, who would I pick? And I immediately, without needing to think said: ‘ARAUCO. It has to be ARAUCO,’” recalls Wang.

He was familiar with Chilean forestry as he had known Claudio Balocchi, senior researcher in Genetics at ARAUCO's Bioforest and now director at TreeCo, for years. Both had studied at NCSU and shared different academic spaces for years, long before Barrangou appeared on the scene.

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“They invited us to participate as strategic partners to give an operational twist to their technology,” says Balocchi about the moment he was contacted by the entrepreneurs. When he brought the topic to ARAUCO, the researcher suggested that CRISPR was the technological future in genetics, which was being demonstrated in different industries. “We reviewed the topic and, finally, we were interested in being more than a strategic partner, we wanted to invest in the company,” he says.

The Bioforest Innovation Center is, just like its name, the place where the forestry company develops and applies state-of-the-art technology in biotechnology and pulp laboratories, greenhouses, forestry assets and industrial plants. The aim is to contribute to climate change mitigation and adaptation, and to circular economy from science to the forestry industry.

About 30 researchers work at the facilities in Concepción, where there is constant contact with the TreeCo offices and laboratories, as the US team is in charge of developing the plants, while in Chile they are in charge of evaluating their potential benefits in the field.

Through mutagenesis, TreeCo is currently editing the eucalyptus genome by targeting the genes for lignin formation and, probably by 2025, as they say, the plants would be sent to Bioforest's laboratories, where, in three to five years, they could demonstrate that some of the edited lines work according to their expectations. Then, operational

plantings with the edited clones would begin. “By 2040 we should harvest these trees because they must be tried and tested and, once everything has been validated, we will start commercial planting,” explains Sebastián Mandiola, R&D manager at the forestry company.

Mandiola, who is also chairman of TreeCo's board of directors, explains the importance of the collaborative work between the two laboratories: “At ARAUCO, through Bioforest, we are a very present partner. We have regular meetings with Jack and Rodolphe.

Claudio meets with them once a week and I meet with them once a month, and there we are constantly discussing and creating synergies for new ways to move forward.”

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For future generations

treeco + arauco:

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TreeCo, in the United States, modifies the genetics of trees with CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) technology, which allows the genome of living organisms to be edited in a nontransgenic way.

For TreeCo's co-founders, it was not random to enter into forestry, as they saw the opportunity to generate a greater impact than in any other industry. “We can use CRISPR to develop medicines and we're going to save lives, and it's great, but really how many lives are we going to impact?

When Jack and I decided to commit ourselves to forestry, we realized that we were going to impact billions of people. It's literally everybody on planet Earth, plus the next hundred million who will be born,” says Barrangou.

This focus on benefiting future generations is another reason why the partnership between TreeCo and ARAUCO, and consequently with its parent company Empresas Copec, made sense.

This year, the Company unveiled the redefinition of its corporate purpose “To shape the world for future generations,” giving priority to a longterm view of its business. Barrangou explains the synchronization: “There is a perfect alignment to generate the most tangible and realistic impact we can have. It's a big vision and that's why it's so important to work with people who share a commitment to the time frame in which we operate. Why don't more people have the courage to do this? It's a mystery to me, but I'm glad we share this common motivation with Empresas Copec.”

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Bioforest is the place where forestry develops and applies state-of-the-art technology in biotechnology and cellulose laboratories, greenhouses, forestry assets and industrial plants.

3-5 YEARS

2040 It would be possible to demonstrate that some of the edited lines work according to expectations.

Operational plantings would begin with the edited clones.

Subsequent harvesting of these trees for testing.

Possible start of commercial planting.

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CO2 consumption, it would be very comforting, because at the end of the day we are not only adding value to ARAUCO, but also for generations to come,” reckons Sebastián Mandiola.

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For Claudio Balocchi, there is also a sense of pride associated with what they seek to achieve: “An important part of my professional life goal has been to contribute knowledge to obtain sustained progress over time. I feel very fulfilled to have found this tool and to have taken it to ARAUCO, as it is the future to be able to continue growing in genetic gains in the long term and to face challenges associated with sustainability and climate change.”

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“We are not only adding value to ARAUCO, but also for generations to come,” reckons Mandiola.

Sebastián Mandiola, Claudio Balocchi and Jack Wang.

Long-term view At TreeCo, Bioforest and ARAUCO, there are high expectations associated with the work they are engaged in today. Jack Wang is very clear about this: “I have told this to Rodolphe and Claudio, that my life's goal is to stand on top of a hill, looking down vast forests that are our CRISPR edited trees. And that's important to me because it means that we have really debottlenecked grand challenges in forest biotechnology and that we have democratized CRISPR from a technical perspective, from an ecological perspective, and from a regulatory and social perspective.”

“If we were able, with TreeCo and other technologies, to repopulate or reforest places that have lost their capacity to sustain forests and turn them into lungs for

However, they know that changing the world requires collaboration between different players, as Barrangou says: “If we could work with the governments and other partners and shareholders that share our visions, that share our values, there's probably no limit to how far we can go. And that's one of the key reasons why we are an Empresas Copec portfolio company, because we have the aspiration that this is just the beginning, and that we want to convey and translate that promise into the real world at scale.”

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Sebastián Mandiola ARAUCO R&D Manager.

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Customer focus is just one of the areas both companies have in common. from the inside

copec:

DETAILS OF THE PARTNERSHIP BETWEEN COPEC AND STREAT BURGER A successful pilot plan outside Santiago, which ended with the outlining of a powerful expansion plan and customers who will enter into an innovative culinary experience, are part of the deal.

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With that settled, they decided to analyze the market and see what Chileans were looking for. There, they found a customer who was willing to pay for a hamburger of higher quality, standard and flavor.

The idea of creating Streat Burger, one of the most iconic gourmet hamburger chains in the country, which since May of this year has been part of the Copec subsidiary, began to “cook” 10 years ago.

“Quality, standardization and developing a brand that managed codes and a global aesthetic were our starting drivers,” says Lipthay.

The story began in 2014, when the current CEO of the burger restaurant, Nicolás Lipthay, together with his partner, Diego Desmadryl, embarked on a trip that would take them on a tour through the United States and Europe, with the aim of learning about new experiences and flavors that would allow them to develop an original gastronomic proposal in Chile.

Thus began the process of molding Streat Burger, after several bites in dozens of restaurants and factories that the duo toured in London, Madrid, New York and other cities.

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Nicolás Lipthay Co-founder and CEO of Streat Burger.

Desmadryl and Lipthay's palate delved into different concepts and tastes that they experienced in the main cities of the world, until the scales tipped in favor of meat.

But what to do with it? That was one of the doubts they needed to clear up. At that moment they saw an opportunity: there was a growing trend in the minds of global consumers to have a good burger on the table.

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Diego Desmadryl Co-founder of Streat Burger.

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After several months of preparations, in 2016 was the acid test: opening the first store.

This was located on Isidora Goyenechea Avenue, in the heart of El Golf neighborhood, in Las Condes. It was not an easy task, considering that their neighbor was a famous pizzeria. But it went very well and, two years later, they opened a second location in Parque Arauco. By July 2019, the brand was already positioned and expanded with its third store, this time in La Dehesa.

By 2022, the consolidation of Streat Burger was in full swing. Proof of this is the Golden Pan award for Best Restaurant of the Year, given by Uber Eats, after selling 70,000 burgers a month through the platform.

Why “streat” and not “street”?

The master idea was ready. Then came the mission of giving a name to the new brand that would revolutionize the hamburger market in Chile. “We were looking for a simple name, rather than in English or Spanish, a word with a lot of meaning and, at the same time, global. In short, we decided on STREAT, which is a concept that brings together the world of the street with the world of eating,” explains the executive.

Going back in time, Lipthay recalls that one of the keys was always “to worry a lot about the processes. Despite being small we wanted to do things as well as possible, with an excellent team and suppliers that allowed us to deliver the product as standardized as possible.”

Currently, they have a network of seven hamburger stores and one ice cream store.

The last one to open its doors was the one in Copec in San Francisco de Mostazal, in December last year. That was the beginning of a new chapter in the history of Streat Burger.

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Burger has positioned itself as a brand valued by customers for its innovative and modern profile, offering high quality and fresh products at a convenient price.”

Love at first sight For Streat Burger's latest outlet, the company was looking for a partner to continue expanding beyond Santiago.

Lipthay was ready to take the first step and approached Copec: “We were looking for a strategic partner to grow and scale Streat. From that first call, the conversation never stopped,” he says.

Copec was interested in the proposal and they agreed to develop a pilot plan at the Copec service station in San Francisco de Mostazal. This pilot plan was considered a success and exceeded all expectations.

This store in the O'Higgins Region led not only to high levels of sales, but also to an increase in the number of people visiting the station, attracting more traffic and with a good customer experience, according to Copec's internal analysis.

The subsidiary's Retail Manager, Nicolás Rostagno, comments that “Streat Burger caught our attention: a brand that at that time had already positioned itself as a leader in the hamburger market in the ‘fast casual’ segment, which is growing a lot, both in Chile and in the world. Streat

The hamburger company wanted to grow and expand throughout the country. Copec gave them that possibility. With this card on the table, the acquisition of the iconic hamburger chain was completed. “The best way to scale its value proposition both inside and outside the network was to deepen our relationship and move forward with an acquisition,” said the executive.

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Nicolás Rostagno Copec’s Retail Manager.

Copec's entry into the ownership of Streat Burger came at a crucial moment, given the design of the roadmap that the subsidiary has drawn up, with a powerful and innovative strategic plan based on the development of three new business verticals outside the traditional one.

These three axes are new convenience, energy and mobility. “In particular, within new convenience, we have set ourselves the challenge of being the leaders in food on-the-go in Chile, incorporating experiences that surprise our customers both inside and outside our service stations,” adds Rostagno.

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Lipthay adds that it was an ambition, since they founded Streat Burger, to find a partner to create a joint path, “with an ambitious plan that would take Streat to where we always dreamed of. Today, after closing the sale and leading the project from Copec, I feel very proud to have achieved this closure and to be able to project the

In this context, today the subsidiary seeks to strengthen the Pronto Copec brand and incorporate new ones, such as Streat Burger, which have proven to generate traffic on their own.

Rostagno explains that “there are common elements between Copec and Streat Burger: the focus on the customer, offering an exceptional infrastructure throughout the territory and always making high quality products available.”

The factors that played in Streat Burger's favor to win over Copec were that “it manages to attract a different customer than Pronto, who is willing to stay longer to enjoy a different gastronomic experience. It is, in general, a young customer, digital and very loyal to the brand,” says the executive.

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brand, its culture and vision throughout Chile and, why not, beyond our borders.”

Rostagno adds that, through Copec's loyalty program, they have observed that their customers are constantly looking for new experiences at the stations, “therefore, for those who knew the Streat Burger brand, it was spectacular news.”

This year will end with five Streat Burger locations in high-flow Copec service stations. _ in the photo:

Arturo Natho, CEO of Copec, together with Leonardo Ljubetic, the founders of Streat Burger and the team that participated in the transaction, on the day of the closing of the sale.

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2024

A new chapter is on the horizon for the burger brand. For Rostagno, there is a range of possibilities for expanding the burger company. He exclusively gave details of future plans: “We see the opportunity to take Streat throughout Chile, both through its presence in our stations and by expanding into urban residential and office areas with stand-alone stores. In addition, we can leverage Copec's technological capabilities, our loyalty program, digital platforms and logistics network to accelerate the brand's growth.”

2022 Streat Burger receives the Golden Pan award for Best Restaurant of the Year from Uber Eats.

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A powerful expansion plan

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Streat Burger will be in Copec high-flow gas stations. In the near future, it is expected:

For the time being, this year will end with Streat Burger locations in high-flow Copec service stations, and then they will continue with a powerful expansion plan both inside and outside the network.

70.000

burgers per month through the platform.

The possibility of accumulating points and being able to redeem Full Copec coupons.

To use Copec's digital payment methods.

To continue to constantly improve the customer's travel experience.

Rostagno adds that “this summer we hope to have the possibility of earning points and being able to redeem coupons in our Full Copec loyalty program, use our digital payment methods and continue to constantly improve the travel experience of our customers."

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A challenging journey Streat Burger's path has not been exempt of challenges. The firm had to deal with the social outburst of October 2019, which struck at the height of the beginning of the expansion of its branch network and, later, the health restrictions imposed by the Covid-19 pandemic.

These unexpected events led to putting the original plans on hold and redirecting the helm. The guideline of the time was a deep commitment to the development of the delivery service, without losing the qualities achieved in previous years.

Looking back on this challenging stage, Lipthay comments that “we had a brand, product and operation that allowed us to reach homes through delivery, in a very attractive and high-quality way. But the most important thing, by far, was to have

Streat Burger wanted to grow and expand throughout the country.

Copec gave them that possibility.

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a team that accompanied us and worked to keep Streat open every day during such a difficult period for the gastronomic industry and for humanity.”

Regarding the greatest lessons learned 10 years after founding Streat Burger, Lipthay points out that “believing in one's convictions and incorporating the team to that culture, not giving in or falling into the temptation of modifying the identity or the products, in short, being faithful to the brand.”

On Copec's side, Rostagno states that Pronto seeks to enrich people's lives as they travel to their destination, “and in this context, the acquisition of Streat Burger provides an exceptional gastronomic experience through a great product and experience.”

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Red metal is now a strategically important commodity worldwide. from the inside

alxar internacional:

COPPER, A KEY PLAYER IN ENERGY TRANSITION The multiple properties of Chile's main export commodity make it a vital input in the transition to the use of clean energy.

Experts agree that the price will maintain its positive trend, and warn that it is essential to innovate permanently in order to increase production efficiency.

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Unbeatable attributes With its sweet and sour moments, with its ups and downs associated with macroeconomic and geopolitical factors, with its vulnerability to speculation, with players coming in and out of the scene, copper is a standard bearer in the Chilean economy. Its multiple uses, ranging from large industry to simple domestic appliances, make the red metal a commodity of strategic importance worldwide.

In the opinion of experts, the behavior of the price of this mineral has been relatively predictable in recent years and has been mainly associated with difficulties in maintaining production levels in the face of growing demand. In fact, and beyond the daily fluctuations, data from Cochilco (Chilean Copper Commission) indicate that between November 2023 and May 2024 the price had an important jump, going from US$ 3.64 to more than US$ 4.5 per pound.

Chile, the largest copper producer in the world, has witnessed how, in recent years, a vein has been added to the red metal opening up great opportunities: its role in the energy transition.

The transition from a hydrocarbon-based economy to one driven by clean energy requires specific materials, including nickel, manganese, vanadium, lithium, rare earths, cobalt and others, totaling around 70 elements. But copper has conditions that give it a clear advantage over the others, in terms of the number of uses and the depth of its market.

Juan Carlos Guajardo, executive director at consulting firm Plusmining, refers to these characteristics. “Not only has it been present for a long time in the daily life of mankind, but it also plays an essential role in clean energy, which is the key to this new era. While lithium is very relevant for battery storage, for example, copper is mainly relevant for electricity transmission and distribution. In this effort to decontaminate the

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Erwin Kaufmann Alxar Internacional CEO.

environment, there is no point in generating clean energy from the sun or wind if we cannot connect it to the distribution grid. Copper is highly efficient in this regard, with no substantial losses and at reasonable costs,” he says.

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An electric vehicle uses on average three times more copper than a combustion vehicle in its components, essentially in the engine, cables and batteries.

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It is a strong, corrosion-resistant metal and one of the best thermal and electrical conductors in existence.

It is recyclable, highly ductile, has antibacterial properties and is suitable for a variety of alloys. This makes it a vital input in areas as diverse as industrial machinery manufacturing, medicine, agriculture, construction, transportation and telecommunications, among many others.

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Juan Carlos Guajardo Executive director at consulting firm Plusmining.

an electric vehicle uses on average three times more copper than a combustion vehicle in its components, essentially in the engine, cables and batteries.

Consequently, its role in reducing emissions from the vehicle fleet is becoming increasingly important, so much so that a study by the International Copper Association estimates that in 2027 the demand for electromobility will be nine times greater than in 2017.

Empresas Copec is involved in copper mining through its subsidiary Alxar Internacional. The company's CEO, Erwin Kaufmann, complements the vision of Plusmining's executive director by pointing out that part of the strength of copper is that “it not only has applications in the energy transition, but also in daily life.

What the transition does is to increase demand and open up new perspectives, but its bases go much further.”

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Innovation: a permanent challenge Cochilco estimates that the positive trend in copper prices will continue. Chile will contribute around 5.8 million tons next year, which represents an increase of 6% compared to 2024. This increase in production will allow addressing a demand that today is close to 27 million tons and will remain robust, to a large extent, thanks to the energy and technological transition at global level and, especially, in developed nations.

Erwin Kaufmann confirms the state agency's estimates, arguing that, unlike other raw materials, this metal has no relevant substitutes that pose a threat today. “The other strategic minerals in the energy transition, which are produced on smaller scales, could have

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Chile is the largest copper producer in the world. Its multiple uses include:

Large industry.

2025 Chile will contribute around:

This demand will remain robust, in large part due to

5.8

To simple domestic appliances.

6%

MILLION

Tons of copper.

Increase compared to 2024.

Energy Transition.

The global technological transition.

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The executive director of Plusmining has no doubts about the future availability of the resource, but emphasizes the importance of permanent innovation to develop economically viable projects. He stresses that it is necessary to encourage technological changes to produce more efficiently and, thus, solve the challenges that the supply will have.

problems meeting demand. As for electromobility, the change in the vehicle fleet has been slower than previously thought, but that has not affected the auspicious forecasts,” indicates the executive.

For Juan Carlos Guajardo, geopolitical changes and tensions in the commercial field could influence the speed at which the energy transition develops. “For example, China is a leader in solar panels, has a lot of wind and hydroelectric power and also produces electric cars. But the United States sees it as a competitor and is levying very high tariffs to prevent these technologies from the Asian giant from reaching markets on competitive terms.”

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in copper mining, in order to be a relevant player in this industry. This search is mainly focused on Chile and Peru, but we are also looking at other geographies such as North America. We want copper to be our battle flag and grow our production,” he concludes.

In the meantime, Alxar is heading precisely in that direction, processing highgrade ore and making steady progress in the Mina Justa Subterránea project in Peru, which will increase reserves by more than 600,000 tons of fine copper. Kaufmann states that “in addition to the development of Justa Subterránea, Alxar continues to actively seek profitable and attractive opportunities

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ARAUCO, with its portfolio of sustainable solutions, emerges as a key player in the supply of essential raw materials to address the climate crisis. from the inside

arauco:

SUSTAINABLE PRODUCTS FROM THE ROOT In a context of climate crisis, where the entire planet is called upon to reduce its carbon footprint, the forestry subsidiary promotes the development of renewable solutions for construction, packaging and apparel, with materials that are sustainable from their origin.

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Marianne Hermanns ARAUCO's Environmental Manager.

In this context, ARAUCO, with its portfolio of sustainable solutions, arises as a key player in the supply of essential raw materials to address the climate crisis. Thus, the different types of pulp, wood and derivatives that it markets are making their way from its forests and production plants to global markets.

With a long-term vision, innovation, sustainability and quality are fundamental pillars in all stages of its value chain, from forest management to the production and distribution of its products. Thanks to this integrated approach, ARAUCO not only responds to the demands of the present, but also positions itself as a leader in building a more sustainable world.

Garments based on dissolving pulp, industrialized wood constructions and food packaging based on wood fiber are some of the environmentally friendly products that have been gaining ground in the daily lives of millions of people around the world. They are replacing materials such as polyester, concrete and single-use plastics. This true paradigm shift in consumption decisions is motivated by a growing awareness of the environmental impact of people's actions and the need to contribute to the sustainable balance of the planet.

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Renewable, carbon-neutral and circular Trees, especially during their growth, play a crucial role for the planet, since by absorbing carbon dioxide (CO2) they release oxygen and store carbon in their structure: wood. This is why its use in industries such as construction and fashion - which according to the World Economic Forum (WEF) represent the second and third largest emitters of greenhouse gases globally - is seen as a feasible and scalable alternative to meet the challenges of the climate emergency.

ARAUCO's Environmental Manager, Marianne Hermanns, emphasizes that one of the company's permanent environmental focuses is to continue deepening the reduction of CO2 emissions and to achieve 100% waste recovery. “We are a carbon-neutral company, with sustainable and renewable processes, thinking about the present and future wellbeing of people,” she says.

ARAUCO's Director of Wood Construction, Fernando Marcone, adds that all the company's products have a solid foundation in sustainability. “ARAUCO's raw materials come from trees obtained from forestry 60

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Along the same lines, Marianne Hermanns explains that the use of biomass for energy generation “allows us not only to supply ourselves with electrical and thermal energy to produce inputs that improve people's quality of life, replacing plastic and other materials with renewable and sustainable products, but we can also deliver close to 300 MW of clean energy to the country.”

plantations with certifications that accredit their responsible and renewable origin.

Therefore, wood is the only material that allows us to develop infrastructure from a renewable material and, at the same time, replace construction materials with a high CO2 footprint, such as steel or concrete, helping to reduce the environmental impact of those industries,” he explains.

According to Ricardo Strauszer, Commercial Manager at Celulosa ARAUCO, the pulp mills are self-sufficient in energy, even generating surpluses. “We supply green energy to the interconnected grid, and that is extremely important, because our final product, which is pulp, already comes from an environmentally friendly and renewable process.”

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Trees, especially during their growth, play a crucial role for the planet, since by absorbing carbon dioxide (CO2) they release oxygen and store carbon in their structure: wood.

This is in addition to water management, which, in the words of ARAUCO's Environmental Manager, is based on the efficient use of this resource in processes “hand in hand with initiatives to increase water recirculation, reduce consumption and make the best use of water.”

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Ricardo Strauszer Commercial Manager at Celulosa ARAUCO. 61

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The rebirth of wood construction

This approach responds to two initiatives established in the face of climate change: the Paris Agreement commitment to reduce GHG emissions to limit global warming to 1.5°C and the need to build 183 billion square meters to house a projected world population increase of 2.3 billion people by 2050, according to the UN Global Status Report for

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mix of sustainable products, in addition to its latest innovation, HILAM, composed of large, versatile, resistant and precise engineered pieces based on laminated and cross-laminated timber, which make it possible to replace inputs such as concrete and steel in uses where this was not previously possible, such as, for example, to develop the supporting structure of high-rise buildings. Likewise, through E2E, it designs and produces an industrialized construction system based on woodstructured panels, focused on providing quality housing solutions in the context of the large housing deficit locally and regionally.

Industrialized wood construction is transforming the construction sector, promoting a more rational and efficient use of natural resources.

Through its HILAM engineering line and its subsidiary E2E, ARAUCO has developed a wide range of construction solutions with advanced, high-precision technology that complement its comprehensive offering of panels, sawn timber and moldings, covering a large part of the industry's requirements, from structural products to finishing products. In addition, a new OSB (Oriented Strand Board) line will soon be installed at its Ñuble plant, completing the company's diverse mix.

“Today, wood and its derivatives are positioned as a key solution to face the climate emergency, thanks to the industrial capacity to develop large-scale projects. Our purpose is to encourage the greater incorporation of wood in construction because of its efficiency, quality and sustainability,” says Fernando Marcone.

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Fernando Marcone ARAUCO's Director of Wood Construction.

The industrialized wood construction process of the HILAM line includes 3D modeling, manufacturing and precision machining on modern automated lines at the plant, and transportation and assembly with specialized equipment. “This method goes beyond meeting environmental requirements, reduces labor, minimizes transportation

Buildings and Constructions 2022.

“If we consider that the building industry is responsible for 40% of global emissions, the big question is what are the implications for the environment, in terms of carbon footprint, of the choice of materials for the development of that infrastructure,” says Marcone.

In short, the world needs to build more and in an environmentally friendly manner, and ARAUCO is determined to be part of the solution. It is already present around the world with its broad 62

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Industrialized wood construction is transforming the construction sector, promoting a more rational and efficient use of natural resources. and waste, decreases execution times, and costs, which are already competitive, have the potential to be further reduced once we have more scale and increase know-how regarding the system. We are just getting started,” explains Marcone.

ARAUCO's portfolio already includes several completed and ongoing projects, such as three iconic carbon-neutral timber initiatives in Chile, pioneers in Latin America. All of them are aligned with the global challenge of climate emergency, achieving

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zero carbon emissions during their lifespan, from construction to operation.

Among its recent projects is the world's largest wooden staircase, weighing 35 tons, which was installed in just six hours at the Tobalaba Urban Market, MUT, in Santiago. The project responded to the challenge posed by Inmobiliaria Territoria to reformulate a structure originally designed in steel and concrete. Along

the same lines, the last building on the site will have a wooden window system developed by TECMA and ARAUCO. And, since August of this year, the company has been working on the assembly of the largest project in South America scheduled for 2025: the first industrial complex for salmon in wood, located in front of the Chacao Canal.

Although in 2020 there were already almost a hundred buildings of this type in the world, some of them reaching 25 stories, wood construction in Chile is still in its early stages. “Despite being a forestry country, the use of wood for building does not exceed 13%. There is a lack of specialized architects and engineers and it is necessary to demystify beliefs about the efficiency and solidity of this material,” says Marcone.

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ARAUCO's raw material comes from trees obtained from forestry plantations with certifications that accredit its responsible and renewable origin.

The production of dissolving pulp aims to offer a sustainable alternative to traditional, predominantly synthetic, textile materials.

In construction, wood and its derivatives are positioned as a key solution to address the need to build: The pulp mills are selfsufficient in energy, generating surpluses and supplying green energy to the interconnected system.

ARAUCO, with its portfolio of sustainable solutions, is a key player in the supply of raw materials that are essential to address the climate crisis.

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183 BILLION

500

THOUSAND

Square meters to house a growing world population.

Tons distributed mainly to China, India, Thailand and Taiwan.

2050

8%

According to the UN Global Status Report for Buildings and Constructions 2022.

Of the world market.

Water management is based on the efficient use of this resource in processes of water recirculation, water consumption reduction and water use.

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The executive emphasizes that when properly used and protected, wood is resistant, long-lasting and capable of withstanding threats such as termites, humidity, fire and earthquakes. “At ARAUCO we have engineered products made from this material, which are used with great success in Europe, the United States, Japan, Australia, etc., for all types of projects. Although constructing a building with wood is an important innovation for the country, it is something that is already proven in the world, works well and is sustainable.

Therefore, it is better than the traditional alternative,” he adds.

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traditional, predominantly synthetic textile materials. “Currently, world textile production reaches 120 million tons per year, with more than 50% of the fiber coming from polyester, a petroleum derivative, followed by cotton, with more than 20%, and, in third place, viscose, which is made from pulp, with around 7%,” he says.

According to UN data, the fashion industry is responsible for 10% of global carbon emissions. During the last 20 years, textile production has doubled from 60 million tons in 2002 to 120 million tons in 2022, where more than 90% of this increase is explained by the growth in polyester production. This material, due to its lower price compared to natural fibers, is widely used in sportswear, economic textiles and industrial use.

Dissolving pulp: the future of sustainable fashion As part of its strategy to expand its portfolio of sustainable products and respond to the growing global demand for environmentally friendly materials, in 2020, following an investment of US$200 million, ARAUCO began production of dissolving pulp at its Valdivia mill.

Ricardo Strauszer explains that the decision to enter this market aims to offer a sustainable alternative to

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“Unlike polyester, dissolving pulp made from cellulose is renewable, as long as the wood used comes from sustainable sources, as is the case with ARAUCO,” notes Strauszer. Cotton, on the other hand, although natural and recyclable, faces significant environmental challenges due to its high water consumption, use of pesticides and extensive cultivation areas. “In contrast, dissolving pulp, which ARAUCO produces from wood from certified forestry plantations, offers a solution with a low water and environmental footprint,” explains the company's commercial manager.

Hence the enormous potential of dissolving pulp and the need for the fashion industry to migrate toward more sustainable processes and materials.

ARAUCO currently represents close to 8% of the world dissolving pulp market, with a production of 500,000 tons that is distributed mainly to China, India, Thailand and Taiwan. It is one of the three main non-integrated producers of

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this raw material, that is, it specializes only in the production of pulp and not in viscose itself, which is the next step in the textile yarn manufacturing chain.

In practical terms, viscose derived from dissolving pulp has attributes that make it similar to cotton, standing out for its good drape, which is crucial for the manufacture of garments such as skirts, dresses and shirts. It also stands out for its excellent moisture and odor absorption, characteristics that differentiate it from synthetic fibers, which usually require chemicals to manage odors. “This viscose capability ensures greater durability in terms of freshness and comfort, keeping garments odor-free even after multiple washings,” says Ricardo Strauszer.

Another benefit is the possibility of integrating specific characteristics directly into the fiber during its manufacturing process. For example, flame retardants can be added, which is particularly useful for applications such as firefighting suits; pigments can be incorporated for long-lasting coloration; or antibacterial products can be added that do not fade with washing, as is often the case with other types of fabrics.

The fashion industry is increasingly recognizing the need to embrace sustainable practices. In this context, ARAUCO actively collaborates with industry leaders to promote dissolving pulp as an alternative to traditional, less environmentally friendly materials.

In this line, the company participates in seminars and exhibitions educating about the benefits of dissolving

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pulp and promoting its adoption.

Thus, with a quality superior to other fibers, ARAUCO's dissolving pulp is positioned as a viable and environmentally friendly option, representing a significant step towards a more sustainable fashion.

ARAUCO actively collaborates with leaders in the fashion industry to promote dissolving pulp as a sustainable alternative to traditional, less environmentally friendly materials.

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In response to this crisis, global initiatives have been proposed, such as the Global Plastics Treaty promoted by the UN, which seeks to reduce the production and use of these materials due to their harmful effects. In this scenario, ARAUCO's pulp emerges as a promising alternative, offering a biodegradable and renewable solution to effectively replace the use of plastics in packaging and contribute to a more sustainable future.

The alternative for a world with less plastic Currently, part of the global effort to address the climate crisis is focused on reducing plastic pollution, especially through the replacement of single-use packaging with environmentally sustainable alternatives. These disposable products, which range from food packaging and cleaning products to bags and utensils, make up a large part of the plastic waste that saturates our oceans and ecosystems, as well as contributing significantly to the generation of greenhouse gases during their production and disposal. According to the United Nations Environment Program (UNEP), more than 460 million tons of plastic are produced each year, 36% of which goes to the packaging industry.

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withstanding humid conditions in refrigerators, and even pulpbased bottles for water and other liquids, are some of the innovations where the packaging industry is taking significant steps forward.

Although one of the biggest challenges to replacing plastics continues to be cost, as regulations move forward and there is a growing sense of urgency about the need to migrate to environmentally friendly products, the use of packaging made from a versatile, carbon neutral and biodegradable material such as pulp is emerging as a key player in the transition to a more circular and planet-friendly economy.

Ricardo Strauszer explains that “our pulp can replace many types of plastics; the most basic are those used in food products and packaging in general, which have been gaining ground around the world. Whereas a few years ago food delivery used mainly plastic packaging, today more and more paper or pulp-based cardboard containers are being used.

This change is also due to the development of technological solutions that broaden the possibilities of using this material, enhancing its advantages and making it more competitive. Airtight and functional cardboard lids for food containers, paper labels for beverage containers capable of 67

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Empresas Copec and its subsidiaries seek to contribute to Chile's climate goals and move towards decarbonization. from the inside

empresas copec:

A COMMITMENT TO ENERGY EFFICIENCY AND TRANSITION Empresas Copec, as well as its subsidiaries Abastible, ARAUCO and Copec are carrying out important projects that seek to improve efficiency for the benefit of their customers and accelerate the transformation to cleaner energy, in order to contribute to Chile's climate goals and move towards decarbonization.

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The ability to adapt and the constant concern to meet the present and future needs of its customers are qualities that Empresas Copec's subsidiaries share in common and which explain their active presence and strong commitment to energy efficiency and transition.

As Jorge Ferrando, Chief Strategy and Development Officer of Empresas Copec, explains, part of the value proposition is to embrace this challenge and offer energy solutions that meet the requirements of its customers. “Our corporate work is to detect trends and new concerns, and to resolve how our businesses can contribute to the new challenges.”

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For Leonardo Ljubetic, Copec's Corporate Manager of the Development Division, climate change and other trends related to sustainability, as well as the Energy Efficiency Law enacted in 2021, have brought about new challenges, both for companies and individuals. “We understand that the needs of the world and our customers are changing. Copec has the vocation to lead this transformation and to accompany its customers in the energy transition, making knowledge and the most modern technologies available to them.”

This motivation and focus allow to understand the great deployment of initiatives and services that are part of Copec's strategic plan to boost the country's energy efficiency and transition, increasingly and steadily expanding its portfolio of innovative solutions in three pillars: energy, mobility and convenience.

The goal of the energy transformation is to change the current energy system, based on fossil fuels, diversifying the matrix and adding clean fuels and energies. In this context, Empresas Copec and its subsidiaries seek to contribute to Chile's climate goals and move towards decarbonization.

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Jorge Ferrando Chief Strategy and Development Officer of Empresas Copec.

“The answer to this has been to move towards renewable energies, such as solar, wind, geothermal and biomass, which pose new challenges,” explains Leonardo Bastidas, manager at ARAUCO Bioenergy.

In this context, Jorge Ferrando states that “Empresas Copec and its subsidiaries also seek to promote the path of critical materials needed for the energy transition, such as copper, for example.”

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In order to meet our country's carbon neutrality goals, the Energy Ministry identified five key areas in which it is necessary to implement mitigation measures. So far this year, Copec and its subsidiaries have announced important initiatives in four of them.

In the renewable energy pillar, Copec entered this year in the utility scale generation and storage business with the acquisition of Granja Solar, a photovoltaic park located in the Tarapacá Region, with a generation capacity of 123 MWp. This project will include a BESS

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means of distributed generation (PMGDs for its acronym in Spanish) throughout Chile, of which 15 are already in operations. Likewise, seeking to accompany other companies in their transition journey, it is worth noting the agreement signed with COLUN to build a series of solar plants that will power the dairy industry in the south of Chile. The first of these, Folilco, was inaugurated in Río Bueno and has an installed capacity of 219 Kwp.

Looking into the needs of the future

In energy efficiency, it is worth highlighting the deployment of Turntide smart motors in all Walmart supermarkets in the Metropolitan Region through Copec EMOAC. These are the most efficient and sustainable motors in the world, capable of reducing the energy consumption of air conditioning systems by up to 70%. The same subsidiary currently provides energy efficiency consulting services to more than 30 clients (142 services) in industries such as Mining, Food, Fishing and Transportation. Likewise, it supplies renewable energy for over 800 GWh per year to large customers. All as part of a comprehensive energy intelligence service, studying their energy consumption and setting specific goals to make them more efficient. Thus, Copec Emoac is the company that supplies more large customers in the distribution concession area and ranks 8th among the companies that supply more energy to large customers in Chile.

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In electromobility, Copec has made progress in connecting Chile, creating the most extensive fast-charging network for electric vehicles in South America, with 1,800 kilometers, which allows to cover the country from Coquimbo to Castro. In terms of public transportation, Copec energizes more than 50% of the current fleet of electric buses in the Metropolitan Region. It also has 12 electro-terminals, including the first one in regions, located in Antofagasta and soon there will be another one in Concepción. Also, it has recently entered the two-wheeled transport sector

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Leonardo Ljubetic Copec's Corporate Manager of the Development Division.

system, implemented together with Transelec, with a storage capacity of 420 MWh and an injection power of 105 MW, making it a Renewable Power Plant with a large storage capacity. Additionally, PPAs have been signed with Atlas and Grenergy, seeking to ensure a stable electricity supply for their customers and for the country.

Through Copec Flux, Copec is building a portfolio of 21 small

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Granja Solar, photovoltaic plant acquired this year by Copec.

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Its generating units, located in six production plants, provide clean, renewable energy from biomass and black liquor, supplying energy 24 hours a day and thereby providing greater stability to the electricity system.

with the first battery exchange ecosystem for electric motorcycles in Latin America, together with the Taiwanese startup Gogoro.

In this same context, says Leonardo Bastidas, two new conventional generating units are already in operation contributing to the stability of the electricity system, based on forestry by-products, producing clean and renewable energy, as part of the Arauco Plant Expansion Project (MAPA). Both units have a combined installed capacity of 300 MW and will feed the electricity consumption of this new pulp production line, while their surpluses will be injected into the national electricity grid.

Finally, in the green hydrogen pillar stands out the first hydrogen refueling station that will power an Anglo American staff transport bus. Additionally, together with the German startup Ineratec, Copec is exploring options to evaluate the feasibility of building the first synthetic diesel plant (carbon neutral fuel) in Chile.

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Towards a more sustainable and cleaner system In terms of energy transition, ARAUCO not only stands out as a great green lung that transforms carbon dioxide into oxygen, making it a carbon-absorbing industry. It also produces renewable resources and is committed to reducing emissions from its processes and operations.

Leonardo Bastidas Manager at ARAUCO Bioenergy.

The energy transition implies that, in a medium-term horizon, companies have to transform.

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The MAPA pulp mill has two new conventional generating units that produce clean and renewable energy.

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To promote the country's energy efficiency and transition, Empresas Copec and its subsidiaries are steadily expanding their portfolio of innovative solutions:

energy efficiency and transition:

Copec

Smart motors for supermarkets, solar power generation and storage, fast charging network for electric vehicles, battery swap for electric motorcycles and the first hydrogen refueling station to supply a transport bus.

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Arauco

It is a great green lung that transforms carbon dioxide into oxygen, making it a carbon-absorbing industry. It also produces renewable resources and is committed to reducing emissions from its processes and operations.

Abastible

It aims to move from diesel to Liquefied Natural Gas (LNG) in the transportation sector; to move from LNG to Bio LNG from organic waste; to contribute to the application of green hydrogen for thermal use, mobility and as an industrial input; and to evaluate the production of Bio Propane (Bio LPG), whose development is still in its early stages.

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One innovative project is the implementation of wind farms in forests. “It has been identified that these projects can perfectly complement the forests, given that the nacelles where the wind turbines are installed are located at a height of 120 to 140 meters, well above the elevation of the forests,” he explains. Currently, there are two projects in an advanced stage of development: the Viento Sur project, located in the Arauco area, with 215 MW, and Ovejera Sur, in Los Ríos Region, with 246 MW, which is in the process of environmental approval.

Energy efficiency, on the other hand, is integrated and materialized by incorporating in its processes the cogeneration of steam and electricity from the renewable by-products from the industry itself.

This involves using in advance the steam required for the industrial process for the movement of a turbogenerator and thus producing electricity, which is used for its own consumption, while the surplus is injected into the electricity grid, making it highly energy efficient.

“Energy efficiency in manufacturing is a way to increase competitiveness, but it must be approached strategically and collaboratively,” says Bastidas.

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Customized energy solutions For Abastible, the business model has changed completely. “The goal is not to sell gas, but to add value to our customers through an energy solution,” says Ignacio Mackenna, Commercial Manager of Energy Solutions.

Just as Empresas Copec, by addressing the needs of its customers, they understood that the focus should be on reducing their energy costs, their carbon footprint, increasing productivity, reducing maintenance costs and ensuring operational

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Ignacio Mackenna Commercial Manager of Energy Solutions.

continuity. Since then, the strategy has been to sell customized energy solutions.

“This involves a technical team that designs, develops and executes several engineering projects that, once implemented, solve the client's needs,” adds the executive.

As part of its strategy, Abastible designed a new roadmap to develop decarbonization and 73

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renewable gas solutions and services for its customers, focused on four milestones: moving from diesel to Liquefied Natural Gas (LNG) in the transportation sector; moving from LNG to Bio LNG from organic waste; contributing to the application of green hydrogen for thermal use, mobility and as an industrial input; and evaluating the production of Bio Propane (Bio LPG), whose development is still in its early stages.

In 2022, Abastible acquired 70% of Roda, an energy consulting firm specializing in energy sustainability services, which will be the basis for accelerating the growth of new adjacent businesses, contributing to the strategic diversification of the business and providing a solution to its customers as part of the energy transition.

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To date, the company has implemented more than 250 energy solutions projects related to efficiency, electromobility, photovoltaic energy, electricity trading, thermal solutions, control and monitoring systems based on analytical data for processes with artificial intelligence, among others.

The ability to adapt and the constant concern to meet the present and future needs of its customers are qualities that Empresas Copec's subsidiaries share in common and which explain their active presence and strong commitment to energy efficiency and transition.

According to Jorge Ferrando, “the energy transition implies that, in the mid-term, companies have to transform themselves.

In this scenario, Empresas Copec's subsidiaries have been able to adapt and want to do so in order to be closer to their customers. It is a matter of satisfying the future preferences of customers which, as we know, are evolving.”

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BELÉN EDUCA FOUNDATION, TWO DECADES MAKING DREAMS COME TRUE Three stories give life to the new Belén Educa campaign, an initiative through which the institution seeks to make visible its purpose of providing quality education in vulnerable sectors and where it shares how, since its beginnings in 2000, it has fulfilled the dreams of thousands of students and teachers.

In the campaign, we will hear the stories of Amanda Henríquez, a student at the San Alberto Hurtado school in Pudahuel; Alejandra Norambuena, a teacher at the Juan Francisco Fresno school in Puente Alto, and Brandon Pereira, a former student at the Juan Luis Undurraga school in Quilicura and a graduate in medicine from Universidad Católica.

Since 2006, Empresas Copec has supported the Belén Educa Foundation through its participation in Mentoring Programs, Keynote Lectures given by executives, scholarships for academic excellence and financing. This contribution is in line with Empresas Copec's purpose: To shape the world for future generations.

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For the first time a private Chilean company puts a satellite into orbit. from the inside

lemu nge:

THE “EYES OF THE FOREST” REACH SPACE The national startup Lemu, in which subsidiary ARAUCO has an 84% stake, has just put into orbit a pioneering device for observing and analyzing terrestrial ecosystems.

This technological milestone opens a new stage to obtain better data on nature and, based on this data, to be able to carry out mitigation and conservation actions.

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Leo Prieto Founder and CEO of Lemu.

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solutions. This mission is the result of more than six years of collaboration between earth science, aerospace engineering and information technology professionals from several countries. The launch was led by SpaceX, the aerospace manufacturing and transportation company created by Elon Musk.

Leo Prieto, founder and CEO of Lemu, explains that satellite imagery is the most efficient way to monitor our planet's 51 billion hectares. “But, despite all the satellites in orbit, very few are for terrestrial observation, and even fewer have instruments that allow us to effectively distinguish biodiversity from space,” he says.

Hence the relevance of Lemu Nge. On the one hand, it is the first time that a private Chilean company has put a satellite into orbit and, on the other, it is the first in the world specifically designed to observe biodiversity in terrestrial

It was an unprecedented technological milestone in our country: a Chilean satellite exclusively dedicated to the study of biodiversity was put into orbit at the Vandenberg Space Force Base in California.

It is Lemu Nge (“eyes of the forest” in Mapudungún), equipped with a highdefinition hyperspectral camera, which will make it possible to analyze ecosystems with an image resolution 20 times greater than that of other devices of its type.

The company in charge of the project is Lemu, a national startup pioneer in technology to enhance nature-based

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ecosystems, thus becoming a tool of the highest value for the study and protection of the natural world. Prieto adds that its unprecedented configuration “puts it in a very small group of instruments needed to reduce the data gap of nature.”

ARAUCO's role Contributing to the protection and conservation of the environment has always been a strategic priority for the forestry subsidiary. In this task, which requires constant innovation, it is essential to have data that provides in-depth knowledge of the areas where the company operates, their characteristics, risks and potential.

In 2019, this concern led ARAUCO to approach the startup Odd Industries, created

by Leo Prieto, to offer computer vision services through artificial intelligence, applicable to different sectors, such as mining, construction, agriculture and forestry, among others. It was what the company needed to carry out advanced and accurate observation of its land and plantations, as well as the surrounding ecosystems.

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Gonzalo Zegers, ARAUCO's International and New Business Vice President, says that an original idea was to implement a forest visualization project “taking advantage of the developments that existed in our company and the knowledge of Odd Industries.”

However, the available systems could be used in broader projects that would make it possible to contribute to nature through information. “For that, expert hands and minds were needed in the technological resource, someone from the startup world, and that hand was Leo Prieto's and the team with him. So we decided to go further and in 2020 ARAUCO bought a substantial stake of Odd Industries,” says Zegers.

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Over time, the model was strengthened and the products were adapted. The company changed its focus and name to Lemu and embarked on the satellite project, in which ARAUCO today maintains a majority stake through Arauco Ventures. The executive emphasizes that “this opens a new stage to generate better data and also to showcase a very relevant fact: that a private, Chilean company is launching a satellite dedicated to the care of biodiversity."

Regarding the scope of the initiative, he says that “we want to have a global view, but we will start by prioritizing Chile, with the support of the information generated by us. Afterwards, the idea is to extend it to the world.”

From the data obtained, a ranking of the sectors will be created according to their characteristics, evaluating the conditions of components such as water, carbon, flora and fauna. “In this way, we will be able to contribute so that in those places with lower valuations, we can work on reforestation plans or other conservation actions; in other words, act to improve nature,” emphasizes ARAUCO's International and New Businesses Vice President.

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Gonzalo Zegers ARAUCO's International and New Businesses Vice President.

The Lemu Nge satellite will make it possible to analyze ecosystems with an image resolution 20 times higher than that of other devices of its type.

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An atlas of biodiversity Hand in hand with ARAUCO, with a highly trained professional team committed to the future of the planet, Lemu continues to move forward in its mission to have a greater online knowledge of nature, contributing new data to help promote environmental protection. Working with potential investors who need to offset their carbon footprint and helping companies generate sustainability plans are some of the ideas that are already being developed.

The Biodiversity Atlas created

by Lemu points in this direction.

It is a data platform that allows companies to identify and understand their interaction with nature as part of their operations, mapping key areas of their activity and receiving accurate data on biodiversity, carbon, water and land use. In this way, they can make strategic decisions based on reliable data to improve their environmental impact and move towards goals such as Net Zero or Nature Positive.

Lemu Atlas has a network of more

than 70 verified conservation and restoration projects on five continents. They not only act as a benchmark, but also allow organizations to actively collaborate and support initiatives aligned with their sustainability strategies.

Meanwhile, 500 kilometers above our heads, Lemu Nge travels through space and is getting ready to start transmitting data throughout its journey, which will last several years. What it will deliver is not only figures and photos, but valuable, objective and quantifiable information that will help ARAUCO continue to be a global benchmark in caring for the planet.

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The Chilean private satellite dedicated to the study of biodiversity was launched into orbit.

lemu nge:

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Lemu Nge (“Eye of the forest” in Mapudungun).

2024

-

Vandenberg Space Force Base, California.

20

70

Times better image resolution than other devices of its type.

Equipped with a high-definition hyperspectral camera, which will make it possible to analyze ecosystems.

verified conservation and restoration projects on five continents.

Development of a biodiversity atlas.

Its mission is to bring nature online, bridging the data gap to help curb the environmental crisis.

It will provide solutions through a network of more than...

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technology that amazes

Because of the size of its main structure -no bigger than a shoebox- Lemu Nge is considered a nanosatellite. But this small body houses systems and technologies that never cease to amaze, including:

•

•

It has a hyperspectral camera capable of capturing images at 32 different wavelengths within the electromagnetic spectrum, allowing it to segment ground cover and vegetation, detecting details invisible to the human eye.

It orbits 500 kilometers from Earth and each pixel of the images it captures covers an area of almost five meters per side.

This means that the camera can easily distinguish and classify elements such as the canopy of individual trees or bodies of water.

• It completes one orbit around the Earth every 90 minutes, resulting in 14 orbits per day • Its navigation and communication instruments are powered by the sun's energy, which is transformed into electricity by solar panels.

• Thanks to its unique liquid metal ion electric propulsion system, the satellite has the ability to modify its orbit and thus “revisit” a location on the Earth's surface at a different frequency than the one it has been programmed for. This is important for the observation and analysis of rapid changes in an ecosystem.

• This system, which uses non-toxic depressurized materials, will also allow it to deorbit safely at the end of its mission, disintegrating without leaving space debris.

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comprehensive observation Lemu Nge's initial observation zones will include different areas and ecosystems, carrying out tasks such as:

• Characterization of Andean wetlands of Ramsar category, from the Altiplano to Tierra del Fuego.

• Monitoring of underwater macroalgae forests along the Chilean coast.

• Classification of changes in land use.

• Identification of key plant species, especially trees.

• Typification of invasive plant species.

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copec and sponsorship of team chile:

DRIVING MOVEMENT IN PARIS 2024 Copec's goal is that more private companies can join in the support that Chilean sports need.

In line with its purpose and its historical bond with national sports, the company sponsored Team Chile, that represented the country in the recent Olympic Games, winning two medals and two Olympic diplomas.

This sponsorship adds to the support that Copec provides to rally and rugby, as well as to outstanding figures in athletics and motor sports.

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“We exist to promote the development and mobility of people, companies and the country.” This is Copec's purpose and its scope is not only related to the activities of the business itself, but also to a long history of supporting national sports, ranging from school championships to international events.

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development and continue to promote it, so that it can keep growing and giving visibility to disciplines that tend to be somewhat overshadowed by those that are more popular,” she says.

This trajectory began more than 20 years ago, with Rally Mobil -the main motorsport competition in Chile-, and in 2023 it reached a significant milestone by sponsoring the Pan American and Parapan American Games held in Santiago. But Copec wanted to go further. At the beginning of this year, it signed an agreement with the Chilean Olympic Committee to support Team Chile and become the new sponsor of the country's most outstanding athletes, some of whom participated in the Paris 2024 Olympic Games.

This was shown in last year's Pan American Games, “where we all witnessed the positive and contagious effect that sport is capable of having on

_ in the photo:

Launching of Copec's sponsorship of Team Chile.

With 48 athletes competing in 19 sports, Team Chile won two medals and two Olympic diplomas (certificate awarded to the first eight athletes classified) in these last games. An excellent result, considering that our country had not won any medals in 16 years.

_ in the photo:

Copec sponsors Chile's national rugby team.

The motivation behind these initiatives is strongly linked to the corporate purpose, explains Copec's marketing manager, Gloria Ledermann. “Sport is mobility in itself and it has been proven how good it is for people and society. That is why it makes so much sense for us as a company to contribute to its

_ in the photo:

Gloria Ledermann Copec's Marketing Manager.

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When the agreement with the Olympic Committee was signed, Copec's CEO, Arturo Natho, said that “just as our service stations are a meeting point, so is sport. Therefore, we are excited to be able to bring together millions of people and support the careers of Chileans who represent us internationally, strengthening our historical commitment to national athletes.”

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Deportistas durante el lanzamiento del auspicio de Copec al Team Chile.

an individual and collective level. After that experience, we considered that we had to continue supporting our country and, for that reason, we chose Team Chile, as it has that unique transversality to represent the different branches and to take the name of Chile to a world stage. Being part of this magnificent sporting celebration is a great achievement for them and that is why we celebrate and support their participation,” says the executive.

Copec's sponsorship is an economic contribution to Team Chile, which includes the national team members in different specialties, and has given the brand a presence in different mass media, digital media and sporting events.

In addition to accompanying the team in different activities, video capsules were broadcast through social networks and other channels with four outstanding athletes: Tania Zeng (table tennis), Arantza Inostroza (fencing), Mauricio Molina (BMX) and Thomas

_ thomas briceño, member of the national judo team, shares his experience in the sport.

In addition to its sponsorship for Team Chile at the Olympic Games in Paris, Copec reaffirms its commitment to national sports, and is currently a partner of several disciplines and national representatives.

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olympic sponsor:

2024 Briceño (judo), who were invited to make a last stop at Copec before leaving for France.

At the beginning of this year, Copec signed an agreement with the Chilean Olympic Committee to support Team Chile and become the new sponsor of the country's most outstanding athletes, some of whom participated in the Paris 2024 Olympic Games.

Gloria Ledermann appreciates the response Copec has received from the athletes.

“In this short time as official sponsors, feedback has been positive, as in addition to appreciating our contribution for them, they see a root bond in being a Chilean company that represents the same values as they do.” This has been seen, for example, in their publications and comments on social networks, “where they have welcomed us, feeling that we are there for them. It is good that these alliances are being seen more and more,” she stresses.

The motivation behind these initiatives is strongly linked to the corporate purpose, “to promote mobility.”

In addition to accompanying the team in different activities, video capsules were broadcast through social networks and other channels with four outstanding athletes in the disciplines of table tennis, fencing, BMX and judo.

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_ arantxa inostroza, of the national fencing team, shares her story.

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Copec's sponsorship is an economic contribution to Team Chile, which includes the national team members in different specialties.

Copec's objective is that more private companies can join in the support that Chilean sports need.

The company's commitment in this sense “has always been there and will always continue, since we are convinced that it is a meeting point and that its impact is very beneficial for the people and the country. We want to support much more, so we will continue to look for spaces where our contribution is most relevant for everyone,” concludes the Marketing Manager.

_ in the photo:

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María Ignacia Montt National Athletic team member.

Copec has sponsored Chilean driver Francisco “Chaleco” López since 2006.

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always close to sports

In addition to its sponsorship for Team Chile at the Olympic Games in Paris, Copec reaffirms its commitment to national sports, and is currently a partner of several disciplines and national representatives. These include the Copec Rally Mobil, which is getting ready for its next dates, scheduled for August in the Ñuble Region, September in Biobío and October in Los Ríos. In addition, a stage of the World Rally Championship, WRC, will take place in September, with the company as its main sponsor together with subsidiary ARAUCO.

The National Rugby Federation and the Selknam team are other examples of how a company can contribute to the integral development of people through sports. In individual figures, the company “promotes the mobility” of athlete María Ignacia Montt and pilots Jorge Martínez, Alberto Heller and Francisco “Chaleco” López.

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“Inspire, connect and orchestrate innovation” is the purpose of the UC Anacleto Angelini Innovation Center.

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uc anacleto angelini innovation center:

TEN YEARS ORCHESTRATING INNOVATION IN CHILE On June 6, the UC Anacleto Angelini Innovation Center celebrated a decade of life, a period in which it has accompanied more than 500 companies and around 35,000 entrepreneurs from 14 countries. A path that was possible to start thanks to a contribution from the Angelini Group, that has projected over time through a collaborative partnership that has positively impacted both Empresas Copec and Pontificia Universidad Católica.

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is how engineer Alfonso Gómez remembers his initial contact with what, a couple of years later, would be inaugurated as the UC Anacleto Angelini Innovation Center, of which he was the first executive president.

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The emblematic Anacleto Angelini UC Innovation Center building.

“I was finishing a term as dean of the Adolfo Ibáñez Business School when rector Ignacio Sánchez called me and said: 'We have a wonderful opportunity. We have received a very important donation from the Angelini Group to create an innovation center that will be housed in a building of the highest level, but let me confess that we are still quite uncertain about how to approach it. We need someone willing to be in charge of formulating and implementing the strategy and business model, with full dedication to this cause.' That's when I experienced the thrill of being invited to the greatest honor and challenge of a working life dedicated to innovation.” This

A decade has gone by, and that initial donation of US$ 15 million has turned into a space that, in a short time, became a hub for value creation, nationally and internationally.

In its early years, the focus of the institution was to build a bridge between academia and the productive sector, together with the development of the Chilean entrepreneurial ecosystem, with a strong emphasis on the implementation of new incubators, startups and promoting the creation of a national network of angel investors. These were years when companies had to be persuaded of the need to invest resources in processes, products and cultural changes that would allow established companies to develop innovation capabilities in a world in which change was the only inevitable component.

This evolution is evidence of the Center's connection with the country and its needs, as expressed by Empresas Copec's Chairman, Roberto Angelini, during the ceremony celebrating the organization's tenth anniversary: “To think of innovation as synonymous only of technology or as a creative exercise isolated from the requirements of society is undoubtedly a

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mistake. It is urgent to generate value chains around innovation, linking the classroom, the laboratory, companies -public and private- with people's needs. A value chain that bridges the gap between scientific thinking and the economic and social growth of countries."

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Alfonso Gómez Alfonso Gómez Director of Companies and Counselor of the UC Anacleto Angelini Innovation Center.

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A journey together At the UC Anacleto Angelini Innovation Center, academia and the productive world coexist, which has enabled synergies and mutual learning. In this sense, Ignacio Sánchez, rector at Universidad Católica, highlights the contribution and role of Empresas Copec in the creation and development of the entity located in the San Joaquín Campus: “This collaborative work has been very important to promote interaction between our university and the private sector. And with Empresas Copec we have decades of history and experience in this joint work, which has helped us, fundamentally, to learn about the rhythms of a company, the ways how decisions are made, the assessments that are carried out, the types of management.

The university has learned a great deal from this relationship with Empresas Copec in order to project it to the productive sector. It is particularly important to break down myths, barriers and distances between the university and the productive sector."

Meanwhile, Alfonso Gómez emphasizes the focus on people which, since its beginnings, has set the tone: “Its social sense, a key element of the Innovation Center, has everything to do with the fact that it is housed in a firstclass institution, such as Universidad Católica.

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Ignacio Sánchez Rector at Pontificia Universidad Católica de Chile.

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At the UC Anacleto Angelini Innovation Center, academia and the productive world coexist, which has enabled synergies and mutual learning.

Innovation, a phenomenon that is usually associated with technology, economy and creativity, is approached here without losing focus on the fact that its final recipients are people. Beyond technicalities, new products and services, at the UC Anacleto Angelini Innovation Center we seek that loving others, by improving the quality of life of people and seeking to build a more prosperous, inclusive and sustainable country, is always the basic goal.”

Today, the entity, which is located in the iconic building designed by architect Alejandro Aravena, can proudly say that, to date, it has accompanied more than 500 companies in their innovation processes and around 35,000

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Ignacio Sánchez, former President Michelle Bachelet, Roberto Angelini and Alfonso Gómez during the Center's inauguration in 2004.

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uc anacleto angelini innovation center

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This year, the innovation center celebrates its anniversary and the contribution that has been projected over time through a collaboration that has had a positive impact on both Empresas Copec and Universidad Católica.

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500 Initial donation from the Angelini Group.

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The future, an obsession

entrepreneurs from 14 countries. There, too, both institutions come together through bodies such as the Council Board, which is comprised, among others, by executives from Empresas Copec and members of the university.

“This close and trusting relationship with such an important group has been very important for understanding not only the academic world, but also the business reality. In addition to being connected, because we are the last step that makes the transfer to the market, we are like the last exit or entrance door for the university. The business conception is in our DNA, not only the academy,” says Ramón Molina, executive director of the institution.

Alfonso Gómez, meanwhile, highlights the richness generated in instances such as the Council, of which he is now a member: “We are there to listen to what the Center is doing and what is the evolution of its strategy and future plans. It is a space where we listen and give our opinions from different experiences and disciplines, always seeking to enhance, as a team, the creation of value from the Center to the university and society in general.”

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In these 10 years, the world has changed enormously. As Roberto Angelini pointed out during the anniversary celebration ceremony, the challenges facing humanity have increased: the effects of climate change have worsened, a pandemic has occurred, geopolitical tensions and armed conflicts have worsened, and the world has been tending towards fragmentation. Hence, it is key to do things differently, but with a long-

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_ center's 10 year anniversary video.

term view: “The Innovation Center is not a space for those looking for quick results, instant gratification and immediate reward. But it is for those who want to contribute to shaping the world for future generations, which is our purpose as Empresas Copec.”

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Ramón Molina Executive Director of the UC Anacleto Angelini Innovation Center.

In this context, the institution continues to play a key role in the country and the region. As Molina says, Chile invests 0.35% of its GDP in R&D, an amount that is 70% state-owned and 30% private. Investment in developed countries, meanwhile, would reach 4%, with a mix that is 70% private and 30% state-owned. And that is why, going forward, the mission of inspiring, connecting and orchestrating innovation continues to be so relevant.

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A critical issue is the future: “We are interested in company boards having the ability to detect signals, incorporate them when there is already a trend and have robust models to see what happens with the black swans. Are you not prepared? Is nobody looking at it? You have to watch for the signals, understand them, listen to them, do something,” says Ramón Molina.

A big focus of attention is on artificial intelligence, whose impact is multifactorial.

“There is a before and an after the raise of generative artificial intelligence, and the Center should be a place where the opportunities and threats brought by this true transformation in the history of mankind are studied, worked on and communicated in a

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Pedro Bouchon, UC Vice Rector for Research; Aysén Etcheverry, Chilean Minister of Science, Technology, Knowledge and Innovation; Roberto Angelini, Empresas Copec Chairman, and Juan Carlos Muñoz, Chilean Minister of Transport and Telecommunications, during the celebration of the Center's 10th anniversary.

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very commanding and powerful way,” says Alfonso Gómez. In this line, Ramón Molina explains that the greater productivity associated with AI, plus the progress in biotechnology and its impact on longevity, mean that the creative industries will gain strength, due to the greater space that will be available for leisure and entertainment.

On another front, AI and biotechnology have an impact on the food sector, opening space to smart agro, a sector that they have also set out to boost. “But nothing will come out of it if there is no planet. So we are forced to look at the radical decarbonization of mining and green hydrogen,” says Ramon Molina. It is also necessary to look at the impacts that the enormous flow of data has on people and organizations, so cybersecurity is another of the work objectives, and there is already a portfolio of 12 projects for three years.

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Empresas Copec's executive team during the celebration of the 10th anniversary of the Innovation Center.

All this while keeping the spirit that has inspired them since their beginnings. As Alfonso Gómez explains, “it is impossible to ignore the enormous value -symbolic and seductive- of the building that houses the Center. We need what happens there to be transformed into signals similar to those of an orchestra director, who -without playing a specific instrument- observes, listens, gesticulates and makes what the musicians play sound good as a whole. That is why we proposed from the birth of the Center that our aim should be to generate a creative, interdisciplinary and committed environment with the purpose of 'inspiring, connecting and orchestrating innovation.”

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ENERGY SECTOR EBITDA: US$ 680 million FORESTRY SECTOR EBITDA: US$ 892 million

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RESULTS AS OF june 2024

FISHING SECTOR EBITDA: US$ 50 million

OTHER EBITDA: US$ (10) million TOTAL NET INCOME: US$ 516 million EBITDA: US$ 1.612 billion

The latest results reported as of June of this year show an EBITDA of US$ 1.612 billion and a profit of US$ 516 million. These figures represent substantial improvements with respect to last year's comparable figures, with increases of 54% and 141%, respectively.

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In Peru, Marcobre continues to achieve interesting results, although lower than last year, because this year it is operating in a lower copper grade area, in accordance with its mining plan.

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Rodrigo Huidobro Alvarado CFO at Empresas Copec.

The improvement is mainly due to the pulp business, where prices have been at favorable levels during the first part of 2024, much higher than last year. In a cyclical business by nature, like all commodities, we must live with this volatility and make every effort to produce as efficiently as possible. Along with this, Arauco's Line 3, resulting from the MAPA project, has been increasing its production and reaching its design capacity, thus increasing volumes and decreasing its unit costs.

In the panels and timber division, results have been adjusting to levels close to historical averages, after two years in which construction and remodeling trends brought exceptional figures. This is a relatively stable business, with attractive long-term drivers, where the Arauco subsidiary has a balanced exposure to different geographies.

In the energy sector, there were higher Ebitdas, resulting from improved margins in liquid fuels, including those of the industrial channel, with more favorable inventory revaluation effects and an outstanding performance of the lubricants segment in all geographies.

Abastible, on the other hand, also showed better results, driven by growing volumes, in the context of a successful commercial strategy and a solid supply position.

This higher Ebitda generation has allowed us to gradually improve our debt indicators, reaching an NFD/Ebitda ratio of 3.0 as of June of this year, a level that allows us to comfortably comply with our financial policy, where we have established target ranges that are in line with an investment grade classification, which has recently been ratified for Empresas Copec by the risk rating agencies, with a stable outlook.

In this way, we maintain a prudent and resilient financial structure, seeking at the same time to finance attractive and profitable projects and distribute dividends in a stable manner. This has been recognized by the financial markets, which allowed the Company to place local bonds with the lowest corporate spreads of the year.

Along the same lines, Arauco has just completed the sale of forestry assets for almost US$1.2 billion in Brazil, with an effect on results (to be reflected in the third quarter) of more than US$170 million and a cash inflow of more than US$900 million. On another scale, although with the same philosophy of seeking the “best owner” for the assets and aiming to generate value permanently, Terpel agreed to sell its service station operations in Ecuador and Peru, markets where it did not have a significant presence or evident growth possibilities. All this

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allows the Company to further strengthen its balance sheet, with a view to the growth that could come soon.

Arauco continues to make progress in laying the foundations for its potential Sucuriú project, having already secured more than 70% of the hectares needed to supply its future pulp mill and approved preliminary works. Definitive decisions on this project, which would allow Arauco to increase its pulp capacity by 50%, while at the same time generating a huge positive environmental impact, should be made in the last quarter of this year.

Copec, for its part, continues to pursue its strategy of driving the energy transition, with a new agreement for a BESS electric storage system in northern Chile, which will allow the assets of its Granja Solar to be injected with permanent, high-power electricity.

Also in the line of energy transition, Abastible has just announced an agreement to acquire, subject to some approvals from the competent authorities, the liquefied gas division of Spain's Cepsa, with operations in Spain and Portugal. This is an operation with an attractive return for the subsidiary, especially if adjusted for risk. At the same time, it allows it to have exposure to a market that is several years ahead of Latin American markets in energy transition, which brings benefits in terms of learning, development of capabilities and products, potential alliances and others.

Thus, Empresas Copec is moving forward on different fronts, making progress in its task of shaping a more sustainable world, with a long-term vision and an eye on future generations.

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Empresas Copec leads Merco ESG 2023 ranking as Chile's most responsible holding company

Copec signs agreement with Transelec for 420 MWh storage project

Abastible agrees to acquire liquified gas operation in Spain and Portugal

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Eduardo Navarro joins Icare’s board of directors read

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Empresas Copec successfully issues UF 1,200,000 in bonds

Terpel sells subsidiary in Ecuador and assets in Peru

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Arauco approves US$92 million investment in Ñuble read

Las Salinas begins detailed engineering stage at Viña del Mar site read

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Empresas Copec awards scholarships for academic excellence to future generations read

ARAUCO completes sale of forestry assets in Brazil for US$1.168 billion read

Abastible signs agreement with Comasa to develop green hydrogen project read

Copec Wind Ventures leads Corporate Venture Capital ranking in Chile read

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Empresas Copec leads Merco ESG 2023 ranking as Chile's most responsible holding company the company was acknowledged among the 100 firms leading in sustainability, heading the category.

In addition to the recognition as a holding company, of all the companies nationwide, Empresas Copec ranked 15th in the ESG ranking, up four places from 2022.

The Group's subsidiaries were also highlighted in the Merco responsibility monitor. Copec led the Energy and Distribution category and was ranked 11th. Meanwhile, Abastible and ARAUCO were placed 35th and 67th, respectively.

“Our corporate strategy is focused on the long term, seeking to consolidate a profitable business that, in turn, generates a positive impact on the environment. The goal is to continue promoting good ESG practices, thus contributing to shaping a more sustainable world for future generations,” said Marianne Haramoto, Director of Sustainability and Corporate Affairs at Empresas Copec.

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Copec signs agreement with Transelec for 420 MWh storage project the agreement considers building and operating its first battery energy storage system (bess).

The project will be developed in Copec’s Granja Solar photovoltaic park, which has a generation capacity of 123 MWh and will be operated by Transelec, with Copec Emoac being responsible for selling the energy. The battery system will have an energy storage capacity of 420 MWh and an injection capacity of 105 MW. It is expected to start operating in the first quarter of 2026, transforming the farm into a Renewable Power Plant with Storage Capacity, being one of the first projects of this magnitude and type in Chile.

Copec’s CEO, Arturo Natho, said that “this innovation will optimize the use of renewable energy, ensuring a stable and continuous supply that immediately addresses the current challenges of our energy matrix. This project reaffirms our commitment to Chile, which we materialize in the constant expansion of our portfolio of energy services, allowing us to meet the needs of our customers and accompany them efficiently in their energy transition processes.”

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Abastible agrees to acquire liquified gas operation in Spain and Portugal with this transaction, the company becomes one of the top 10 companies worldwide in the distribution of liquefied gas.

By means of a material fact sent to Chile’s Financial Market Commission (CMF), Empresas Copec reported that its subsidiary Abastible has entered into an agreement to purchase the liquified gas business that Compañía Española de Petróleos S.A. (CEPSA) holds in Spain and Portugal.

The total value of the transaction amounts to €275 million, subject to customary adjustments for this type of transaction. This deal will be completed once the respective validations have been received from the European authorities, in relation to foreign direct investment, and from the European Commission, in matters of free competition, among others.

Thus, the Company begins a long-term relationship with one of the European leaders in driving this transition and represents the first steps into a territory that will allow our subsidiary to move towards new energies and business models.

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Eduardo Navarro joins Icare’s board of directors following the annual meeting, empresas copec ceo was elected to be a member of the board of directors.

“The incorporation of Eduardo Navarro to our board will be a significant contribution to our role as a platform for dialogue and gathering of the Chilean business sector, given his outstanding business career and his commitment to Icare’s values,” said Karen Thal, Icare’s president.

Eduardo Navarro is a commercial engineer and holds a master’s degree in Economics from Pontificia Universidad Católica. He has been linked to Empresas Copec for more than 30 years and has headed the chief executive’s office for 20 years, where he has played a key role in the corporate structure of the holding company and in the Group’s growth over the last decades.

“I join the Icare board in the spirit of contributing to create a constructive dialogue in good faith between the business sector and Chilean society. And with the interest of promoting and disseminating the role that companies play in the wellbeing of countries.

Today, it is time to build a climate of healthy coexistence, with a long-term view and to find common ground to pave our way to development as a country,” said the executive.

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Empresas Copec successfully issues UF 1,200,000 in bonds the transaction generated great interest from investors, as reflected in a demand of more than 2.5 times the amount offered.

The notes, corresponding to the AD series, with a nine-year bullet maturity, were placed at a rate of 3.93%, achieving a spread of 93 base points, the lowest of all corporate issues so far this year.

“We are grateful for the great response we received from a broad investor base. This is a sign of the confidence in our Company, which has been deepening its competitive advantages and has presence in different countries and industries. Empresas Copec has a long-term, sustainable business vision that reflects a commitment to creating value for all parties,” said Rodrigo Huidobro, Chief Financial Officer.

The proceeds of the transaction, where Scotiabank acted as financial advisor and placement agent, will be used to refinance short and/or long-term liabilities of the company and/or its subsidiaries.

This placement is in addition to another issue carried out in May 2024, for UF 1,500,000, for which demand exceeded by 2.7 times the amount offered.

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Terpel sells subsidiary in Ecuador and assets in Peru the decision reflects the company’s interest to focus on the businesses with the greatest growth and profitability potential in the markets where it operates.

On June 20, 2024, the Copec’s subsidiary reported the closing of the sale of 100% of the assets of Terpel Perú S.A.C. and Terpel Comercial Perú S.R.L., corresponding to the operation of service stations for the sale of liquid fuels and natural gas for vehicles.

The company also disclosed the disposal of 100% of the shareholding that Terpel holds, directly and indirectly, in Terpel Comercial Ecuador Cía. Ltda., a subsidiary engaged in the business of service stations and convenience stores.

The buyers of the aforementioned transactions were Corporación Primax S.A. and Coesti S.A., in Peru, and Primax Comercial del Ecuador S.A., in the country with the same name, which will acquire it for a total of USD$64,000,000.

Finally, Terpel stated that in both countries, it will continue distributing Mobil lubricants and selling aviation fuels, liquid fuels for vehicles and Natural Gas for Vehicles (NGV).

The proceeds of the transaction, with Scotiabank as financial advisor and placement agent, will be used to refinance short-term and/or long-term liabilities of the company and/or its subsidiaries.

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Arauco approves US$92 million investment in Ñuble the funds will be used to finance a new osb manufacturing line at the trupáncholguán facility.

With this investment, the subsidiary will begin to produce OSB boards, which are widely used in the construction of residential and commercial buildings.

This new production line, which will start operations during the second quarter of 2026, considers hiring about 200 workers for the construction of the project, with a peak of 300.

“With this project, we not only seek to expand our portfolio of wood-based products, providing sustainable and quality solutions for our customers, but also to contribute to addressing the country’s housing shortage,” said Cristián Infante, ARAUCO’s CEO.

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Las Salinas begins detailed engineering stage at Viña del Mar site the work in the southern plot, paño sur, is a preliminary stage for the bioremediation process, which seeks to recover 16 hectares in the sector.

The company in charge of the procedure, Sèché Group, together with IDOM Consulting and Engineering & Architecture, will be able to update technical information about the topography and soil characteristics, as a first step to implementing the sanitation.

Specifically, the first works include a topographic survey, the application of geodetection technology on the perimeter of the site and the detailed engineering required for the installation of work sites, perimeter enclosures and noise mitigation.

“This is a major step in the more than 20-year effort to recover the Las Salinas site. Our environmental and social commitment to the city encourages us to continue our efforts to clean up and recover these lands for several uses that mean better opportunities for development and a better quality of life for the whole community,” said Ricardo Labarca, CEO at Inmobiliaria Las Salinas.

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Empresas Copec awards scholarships for academic excellence to future generations eight students graduated from belén educa foundation schools were awarded the anacleto angelini fabbri scholarship for higher education studies.

During the award ceremony, Empresas Copec’s Chairman, Roberto Angelini, reaffirmed the Company’s commitment to the foundation and its mission to provide quality education to children and young people from vulnerable sectors, with the aim of building a better future for new generations. “The educational gap in Chile is a social pain that must be addressed with a sense of urgency, considering that the main driver of a country’s development is education,” he said.

Pedro Larraín, executive director of Belén Educa Foundation, valued the partnership of almost two decades with Empresas Copec and, referring to the scholarship recipients, said: “We believe in what we do because we have seen the results and those results are our students.”

Since 2006, more than 130 young students have been awarded this scholarship, which considers financial resources for annual maintenance and support.

This initiative is in line with Empresas Copec’s purpose: To shape the world for future generations.

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ARAUCO completes sale of forestry assets in Brazil for US$1.168 billion the after-tax amount to be received by the subsidiary is approximately us$967 million, generating a profit of approximately us$174 million.

In a Material Fact sent to CMF (Chile’s Financial Market Commission), upon the fulfillment of the agreed-upon suspensive conditions, Arauco and its subsidiary Inversiones Arauco Internacional Limitada have transferred all the shares and social rights they directly held in Arauco Florestal Arapotí S.A. and Arauco Forest Brasil S.A., and indirectly in Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., which own forest plantations mainly in the state of Paraná, Brazil. This transaction was subject to local approvals and had been reported last December.

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Abastible signs agreement with Comasa to develop green hydrogen project the project involves an industrial pilot plant in lautaro, araucanía region, to manufacture hydrogen and produce 40,000 tons of fertilizers per year.

The partnership will enable the subsidiary to make progress in the first project to produce carbon-neutral fertilizers using green ammonia, biogenic carbon dioxide, and bio-ash from biomass power plants.

The investment is estimated at US$ 10 million, of which US$ 3.25 million will be financed with Corfo funds.

Abastible will develop the large-scale engineering, operational risk analysis, and will manage SEC authorizations. Comasa will provide infrastructure, agricultural know-how, technology and technical equipment Fertilizers are currently imported from China and are made from fossil fuels. This initiative seeks to offer renewable alternatives to local agriculture. “Green hydrogen today found a highly profitable path via the green ammonia route to produce synthetic fertilizers,” said Ignacio Mackenna, sales manager at Abastible’s Energy Solutions.

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Copec Wind Ventures leads Corporate Venture Capital ranking in Chile in the study conducted by ese business school, mic business consulting and el mercurio, the subsidiary’s cvc was ranked n°1 in chile.

The ranking takes into account aspects such as the objectives, investment thesis and value propositions for startups of each CVC, in order to encourage their growth and the sustainability of their businesses.

Copec Wind Ventures was established in 2019, with the aim of accelerating the growth of global startups and providing them with privileged access to the Latin American market, with the support of Copec and its affiliates.

Of its portfolio, four startups have reached the “unicorn” status and three have exited through acquisition or IPO. The most outstanding startups include Turntide Technologies, Galgo and Ineratec.

“It all starts with a clear vision and strategy, together with a motivating and mobilizing story that seeks to generate impact for Chile and Latin America. The mission to identify the world’s best startups and align their businesses with new trends and our transformation efforts, is appealing to young talent. In this sense, it has been key to convey the conviction that this is not a temporary experiment, but part of our core strategy,” says Leonardo Ljubetic, Copec’s Chief Corporate Development and Administration Officer, regarding the success of Copec Wind Ventures.

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journalistic magazine published by: empresas copec s.a.

150 el golf avenue, 17th floor, las condes. phone number: 22461 7000 legal representative:: eduardo navarro director: rodrigo huidobro editing and writing: m. francisca riveros journalists: natalia labbé constanza serrano daniela araneda marisol silva francisca zúñiga comsulting team proofreading: norinna carapelle photography: cristián hamed rodolfo jara photoadvisor empresas copec and subsidiaries photo bank image banks design and graphic production: porta4, design studio translation: cristina molina if you have any suggestions and opinions, please send us an email at comunicaciones@empresascopec.cl follow us:

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