Slides
Page 1
Results Webcast 3Q25 N o v e m b e r 1 2th , 2 0 2 5
Page 2
2 This presentation may include market outlooks and forward-looking statements, which are based on the beliefs and assumptions of Empresas Copec’s management and on information currently available to the Company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Empresas Copec and could cause results to differ materially from those expressed in such forward-looking statements. This presentation contains certain performance measures that have been adjusted with respect to IFRS definitions, such as “EBITDA”. DISCLAIMER
Page 3
I. CONSOLIDATED RESULTS II. REVIEW BY BUSINESS DIVISION III. HIGHLIGHTS OF THE QUARTER IV. Q&A 3
Page 4
EBITDA US $642 million -15.9% YoY Lower performance in Forestry, offset by an increase in Energy. YoY and QoQ Lower pulp prices, partly offset by higher sales volumes. . Sustainable Fitch Confirms Allocation and Impact of Empresas Copec’s First Green Bond. Copec Flux to implement the largest photovoltaic parking lot in the country. Copiapó becomes the first city in the continent to have 100% electric public transport. ESG MILESTONESFORESTRY EBITDA DECREASES YoY AND QoQ ENERGY EBITDA INCREASES YoY AND DECREASES QoQ YoY Copec : higher volumes , favorable industrial margin and solid contribution from lubricant segment. Abastibl e: higher volumes in Colombia, Perú and Ecuador . QoQ Copec: higher distribution costs. PROJECTS AND OTHER DEVELOPMENTS Sucuriú Project progress at 25.7%. Works on Mina Justa Subterránea began in October Arauco issued the largest corporate bond in Chile's history I. CONSOLIDATED RESULTS Quarterly Performance Highlights
Page 5
Pulp EBITDA US$ 193 million (-43.1% Yoy / -25.5% QoQ) Copec EBITDA $254,784 million (+18.6% YoY / -0.5% QoQ) Abastible EBITDA $69,045 million (14.0% YoY / 7.7% QoQ) Mina Justa EBITDA US$236 million (35.2% YoY / 5.0% QoQ) DFN / EBITDA 3.26X (32.1% YoY / 11.6% QoQ) CAPEX US$ 1,074 million (84% forestry / 13% energy / 3% otros) Wood Products EBITDA US$118 million (-5.0% YoY / -14.6% QoQ) EBITDA US$642 million (-15.9% YoY / -9.8% QoQ) Sales US$ 7,348 million (0.9% YoY / 2.3% QoQ) Highlights 3Q25 I. CONSOLIDATED RESULTS Quarterly Performance
Page 6
642 EBITDA down 9.8% QoQ and 15.9% YoY Results I. CONSOLIDATED RESULTS Quarterly Performance 198 Net Income down 13.2% QoQ and 51.0% YoY 937 668 616 432 598 655 844 770 764 638 776 712 642 474 -9 155 59 -31 166 228 288 404 191 208 228 198 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 EBITDA Net Income Figures in US$ million
Page 7
2.690 615 1.530 1.224 632 890 1.115 163 943 232 136 338 85 3.796 NET FINANCIAL DEBT / EBITDA FINANCIAL RATIOSDEBT BY COMPANY DEBT BY TYPE I. CONSOLIDATED RESULTS Quarterly Performance Financial Review FINANCIAL DEBT MATURITIES Figures in US$ million 4,57 4,16 3,62 2,79 2,16 2,09 1,95 1,92 1,99 2,37 2,81 3,58 4,03 3,86 3,33 3,03 2,47 2,59 2,78 2,92 3,26 Deuda Neta / EBITDA EC Holding11% Arauco 69% Copec 14% Abastible3% Igemar 3% Others0% Bank Debt 24% Bonds 61% Others 15% 10,5% 9,9% 8,7% 10,5% 9,5% 8,3% 3Q 24 2Q 25 3Q 25 EBITDA margin ROCE
Page 8
I. CONSOLIDATED RESULTS II. REVIEW BY BUSINESS DIVISION III. HIGHLIGHTS OF THE QUARTER IV. Q&A
Page 9
Forestry
Page 10
ARAUCO Income statement EBITDA (US$ million ) Decreased EBITDA UNFAVORABLE OPERATING AND NON- OPERATING INCOME • Lower pulp prices and wood products volumes • Forestry assets sale in 3Q24 • Partly offset by: • Increased pulp volumes. • Higher panels and sawn timber prices • Lower unit selling costs for bleached hardwood and softwood, unbleached softwood and dissolving pulp. II. REVIEW BY BUSINESS DIVISION Forestry US$ million 3Q 25 3Q 24 Change EBITDA 296 463 (167) Operating income 43 177 (134) Non-operating income (11) 190 (201) Taxes (32) (136) 104 Net Income (0) 231 (231) 296 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25
Page 11
MAINTENANCE STOPPAGES (DAYS) PULP Production & sales volumes (Th. tons) PULP – EBITDA* (US$ million) YoY unit selling costs: • Bleached softwood -13.4% • Dissolving pulp -3.6% • Bleached hardwood -7.6% • Unbleached softwood -4.8% PULP QoQ unit selling costs • Bleached softwood -4.4% • Dissolving pulp +13.3% • Bleached hardwood +1.1% • Unbleached softwood +7.6% *As informed by Arauco ** 3Q24 includes forestry assets sale Net Sales Price Sales Volume YoY -17.1% -24.1% 8.5% QoQ -0.5% 8.5% 9.8% II. REVIEW BY BUSINESS DIVISION Forestry 1.169 1.185 1.0751.058 1.046 1.148 3Q 24 2Q 25 3Q 25 Production Sales Volumes 339 259 193 3Q 24 2Q 25 3Q 25 Arauco L2 16 Arauco L3 13 Constitución 23 Nueva Aldea 17 Valdivia 25 Argentina Esperanza 12 Uruguay Montes del Plata 15 Country Instalation Chile 2025 1Q 2Q 3Q 4Q
Page 12
• Towards the end of the quarter, prices rebounded in Hardwood, while Softwood prices recorded a slight decrease. • In China, demand remained stable despite oversupply. The Printing and Writing industry struggled with oversupply, limiting price increases, while the tissue industry remained stable. Regarding prices, Softwood decreased slightly throughout the quarter, while Hardwood increased towards the end of the period. • In Europe, demand showed signs of recovery, with Hardwood prices slightly recovering toward the end of the quarter, which caused interest in securing volumes in some clients. The P&W industry remained challenged, causing producers to reduce output to maintain prices. Additionally, tissue exports from Brazil and of P&W and packaging papers from China increased, as the tissue industry improved slightly towards the end of the quarter after seasonal low demand. • The viscose market showed oversupply, however, the textile pulp market remained stable. • Production decreased 8.0% YoY and 9.4% QoQ. 47 45 PULP 3Q25 II. REVIEW BY BUSINESS DIVISION Forestry 30 35 40 45 50 55 60 BSKP BHKP Average BSKP Average BHKP * As of August 2025 INVENTORIES
Page 13
• In China, domestic demand remains stable despite the persistent oversupply in pulp and paper, as a local producer has added additional pressure to the market. Hardwood prices seem to have reached their lowest point two months ago and no meaningful recovery is expected in Softwood in the short term. Pulp inventories of paper producers remain stable. • In Europe, no signs of demand recovery have been seen, although we expect sales to remain stable. The P&W and Tissue industries are likely to continue at current levels, without showing signs of improvement. Toward the end of the year, many paper companies typically shut down operations for a few weeks, which is normal for that period. • Uncertainty and concerns remains with the implementation of tariffs by the U.S. and the risk of trade conflicts with other countries. ARAUCO PULP PRICES – NET IN CHINA (US$/ton) PULP PRICES CHINA– NBSK / BHKP (US$ / ton) 675 US$/ton Δ 151 US$/t 524 US$/ton OUTLOOK II. REVIEW BY BUSINESS DIVISION Forestry PULP PRICES EUROPE– NBSK / BHKP (US$ / ton) 1,498 US$/ton Δ 438 US$/t 1,059 US$/ton 600 700 800 900 1.000 1.100 1.200 1.300 1.400 1.500 1.600 1.700 NBSK BHKP *Arauco, RISI. As of October 28th, 2025 400 500 600 700 800 900 1.000 NBSK BHKP 885 525 580 510 540 970 680 765 720 680 880 840 900 960 830 810 BHKP BSKP DP
Page 14
WOOD PRODUCTS – EBITDA* (US$ million) PANELS Production & sales volumes (Th. m3) SAWN TIMBER Production & sales volumes (Th. m3) PLYWOOD Production & sales volumes (Th. m3) PANELS *MDF, PBO and HB. SOLID WOOD* *Includes sawn timber, remanufactured solid wood and plywood. *As informed by Arauco WOOD PRODUCTS Price Sales Volume YoY 2.9% -6.0% QoQ -1.4% 1.0% Price Sales Volume YoY 6.0% -10.1.% QoQ 0.2% -3.4% II. REVIEW BY BUSINESS DIVISION Forestry 1.378 1.298 1.306 1.370 1.274 1.287 3Q 24 2Q 25 3Q 25 Production Sales Volumes 492 503 486463 420 413 3Q 24 2Q 25 3Q 25 Production Sales Volumes 146 130 124 139 140 128 3Q 24 2Q 25 3Q 25 Production Sales Volumes 124 138 118 3Q 24 2Q 25 3Q 25
Page 15
• MDF: the market remains challenging, with oversupply and persistent price pressures. • PB: difficulties associated to low demand and tariff uncertainty. • Remanufactured products: challenging scenario, with high interest rates impacting demand, uncertainty leading buyers to keep inventories low, and housing starts index at weak levels. • Plywood: demand expected to remain stable, with limited supply. Prices likely to stay flat. II. REVIEW BY BUSINESS DIVISION – ForestryII. REVIEW BY BUSINESS DIVISION Forestry North America 50% Source: Bloomberg WOOD PRODUCTS OUTLOOK US HOUSING STARTS INDEX (th. units) 1,310
Page 16
• Brazil: market is expected to remain solid, supported by strong PB demand. MDF segment is well balanced and shows stable prices • Chile: mixed conditions, stronger PB and melamine demand contrasted with continued weakness in MDF, pressured by high import supply and a slow moulding market • Argentina: market outlook remains positive, supported by strong local demand for MDF and PB. Supply conditions remain stable. II. REVIEW BY BUSINESS DIVISION – Forestry South & Central America 42% II. REVIEW BY BUSINESS DIVISION Forestry WOOD PRODUCTS OUTLOOK Asia, Oceania, Europe and Middle East 11%
Page 17
Energy
Page 18
II. REVIEW BY BUSINESS DIVISION Energy | Copec Increased EBITDA due to Copec Chile and Terpel HIGHER OPERATING INCOME • Higher volumes in Chile. • Favorable inventory revaluation effect. • Higher industrial margin. • Sustained strong performance in lubricants. COPEC Consolidated Income Statement Million Chilean Pesos 3Q 25 3Q 24 Change EBITDA 254,784 214,806 39,978 Operating income 195,915 153,735 42,180 Non-operating income (23,713) (37,002) 13,289 Net income 99,045 73,170 25,875 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 254,784 Consolidated EBITDA (million CLP)
Page 19
HIGHER VOLUMES II. REVIEW BY BUSINESS DIVISION Energy | Copec 1,603 1,622 1,603 3Q 24 2Q 25 3Q 25 GAS STATION VOLUMES (th. m3) +0,02% YoY INDUSTRIAL CHANNEL VOLUMES (th. m3) +13.59% YoY 1,089 1,194 1,237 3Q 24 2Q 25 3Q 25
Page 20
EBITDA (million COP) II. REVIEW BY BUSINESS DIVISION Energy | Terpel Increased EBITDA HIGHER OPERATING INCOME • Higher volumes. • Sustained strong performance in lubricants. • Favorable inventory revaluation effect. INCREASED NON-OPERATING INCOME PHYSICAL SALES OF LIQUID FUELS (Th. m3) Million COP 3Q 25 3Q 24 Change Revenues 9,664,300 9,075,108 589,193 EBITDA 479,428 455,615 23,813 Operating income 388,911 355,297 33,614 Non-operating income (102,869) (117,888) 15,020 Net income 173,391 153,354 20,037 2,791 2,937 +5.8% +14.4% +4.2% -14.2%+3.0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 479,428
Page 21
II. REVIEW BY BUSINESS DIVISION Energy | Abastible Higher consolidated EBITDA. INCREASED OPERATING INCOME • Volume Growth in Colombia, Perú and Ecuador, increasing 8.7%, 8.4% and 14.2%. Offset by lower performance in Chile. • Gasib results were consolidated. HIGHER TAXES ABASTIBLE Income statement EBITDA (million CLP) Million Chilean Pesos 3Q 25 3Q 24 Change EBITDA 69,045 60,584 8,461 Operating income 43,290 40,201 3,089 Non-operating income (8,942) (5,521) (3,421) Taxes (12,437) (5,536) (6,902) Net income 18,897 27,128 (8,231) 1Q21 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 69,045
Page 22
II. REVIEW BY BUSINESS DIVISION – Energy-Abastible C O L O M B I A : • Bottled segment: Higher margins, along with increased volumes YoY, due to higher demand. • Bulk segment: Higher volumes and margins YoY, associated to pricing strategy. • Market share: Increased to 34.4% YoY. E C U A D O R : • Bottled segment: Higher volumes, offset by lower margins. • Bulk segment: Higher volumes, associated to higher demand of LG instead of substitutes in the industrial sector, offset by lower margins. • Market share: Remained stable at 40.9% YoY. P E R U : • Bottled segment: Higher volumes and margins. • Bulk segment: Increased margins and volumes, driven by higher demand from the poultry industry. • Market share: Increased to 25.5% YoY. C H I L E : • Bottled segment: Lower volumes, due to higher temperatures. • Bulk segment: Lower volumes, offset by increased margins. • Market share: Decreased to 38.4% YoY. VOLUMES IN COLOMBIA Y/Y (Th. tons) +8.7% VOLUMES IN ECUADOR Y/Y (Th. tons) +14.2% VOLUMES IN PERU Y/Y (Th. tons) +8.4% VOLUMES IN CHILE Y/Y (Th. tons) -4.7% II. REVIEW BY BUSINESS DIVISION Energy | Abastible 159 152 3Q 24 3Q 25 64 70 3Q 24 3Q 25 154 176 3Q 24 3Q 25 137 148 3Q 24 3Q 25
Page 23
II. REVIEW BY BUSINESS DIVISION – Energy-Abastible S p a i n a n d P o r t u g a l • Bottled segment: Lower volumes and increased margins. • Bulk segment: Higher volumes, due to substitution from other sources, together with increased margins. • Market share: Increased from 12.2% to 13.2% YoY. II. REVIEW BY BUSINESS DIVISION Energy | Abastible VOLUMES IN SPAIN AND PORTUGAL (Th. tons) 45 45 3Q 24 3Q 25 -0.5%
Page 24
Other investments
Page 25
II. REVIEW BY BUSINESS DIVISION Other Investments (Mina Justa) Increased EBITDA YoY, explained by: • Increase in volumes. • Lower cash-costs. CUMBRES ANDINAS CUMBRES ANDINAS 3Q 25 3Q 24 Change Sales 338 242 95 EBITDA 236 175 61 Net income 137 83 54 Physical sales 31 26 6 Cathodes (kT) 11 26 3 Concentrates (kT) 20 18 2 Treated Ore (kT) 4,863 4,077 785 Cash-cost (C1) (US$/lb) 1.3 1.6 (0.3) Figures in US$ million *Ebitda = Operating Income + Depreciation + Amortization
Page 26
SONACOL Increased results, explained by higher operating income, due to higher volumes. IGEMAR Unfavorable results due to lower prices in almost all products and higher costs. II. REVIEW BY BUSINESS DIVISION Other Investments Net Income 3Q 25 3Q 24 Change Affiliated Companies Sonacol* 9,342 7,699 1,643 Igemar (11) (24) 13 Associated Companies Metrogas* 38,811 39,454 (643) AGESA 34 62 (28) METROGAS Lower net income, due to a lower non operating income. a positive effect due to foreign exchange rate. AGESA Decreased net income, due to a lower operating income. Figures in US$ million * Figures in million Chilean pesos
Page 27
I. CONSOLIDATED RESULTS II. REVIEW BY BUSINESS DIVISION III. HIGHLIGHTS OF THE QUARTER IV. Q&A
Page 28
Highlights
Page 29
Progress of Sucuriú Project • Physical progress of 25.7% as of September. • Mechanical erection works began, which includes pipe racks and boiler steel structures. • Construction also started on the turbogenerators building, cooling tower, and administrative facilities. • CAPEX of ~US$1,017 million was disbursed as of date. III. HIGHLIGHTS OF THE QUARTER
Page 30
Arauco completes US$2,200 million financing for the Sucuriú Project • US$1.25 billion A/B loan co - led by IDB Invest and IFC, with the participation of eight commercial banks • US$970 million Export Credit Facility (ECA) guaranteed by Finnvera . • Participation of multilaterals and an export credit agency enhances engagement on technical advisory on climate, social and value - chain matters. III. HIGHLIGHTS OF THE QUARTER
Page 31
Arauco issues the largest corporate bond in Chile's history • Company’s first sustainable hybrid instrument • UF 20 million (MMUS$ ~844 million) • Placement rate of UF+3.97%, spread of 168 bps • Demand of more than 1.7x • Bond is subordinated to senior debt, allows the deferral of interest payments at the Company’s discretion, and cannot be redeemed before the seventh year. • Rating agencies classify it as 50% debt and 50% equity. • Maturity of 32 years and 3 months, reaffirming the market’s long - term confidence in Arauco’s financial strength and sustainability strategy III. HIGHLIGHTS OF THE QUARTER
Page 32
Works on Mina Justa Subterránea began in October • Copper project will expand from an open - pit operation to an underground phase. • ~US$500 million investment. • Works related to this initiative have begun, starting with the access ramps. • Production is expected to begin in 2028. This project will allow to maintain a stable operation in terms of production and extend the LOM, making better use of the existing infrastructure. III. HIGHLIGHTS OF THE QUARTER
Page 33
ESG Highlights
Page 34
Sustainable Fitch Confirms Allocation and Impact of Empresas Copec’s First Green Bond • Report confirmed that 100% of the proceeds were allocated to eligible green projects. • The financed categories include renewable energy, energy efficiency, and clean transportation, with impact metrics such as avoided emissions, energy savings, energy generation and storage capacity, and the number of charging stations installed. • Funded initiatives contribute to the United Nations Sustainable Development Goals (SDGs) 7, 9, 11, and 13, reinforcing Empresas Copec’s commitment to sustainability and responsible investment practices. III. HIGHLIGHTS OF THE QUARTER
Page 35
III. HIGHLIGHTS OF THE QUARTER ESG Copec Flux promotes the largest photovoltaic parking lot in the country • Area of ~13 thousand m2 and 5,000 bifacial panels, • The infrastructure allows direct and reflected solar radiation to be captured, increasing efficiency of the system. • It is expected to generate 3.94 GWh annually, equivalent to 5% of client’s current energy consumption, which translates into a reduction of 1,555 tons of CO2 per year. • Project should be completed by February 2026.
Page 36
III. HIGHLIGHTS OF THE QUARTER ESG Copiapó becomes the first city in the continent to have 100% electric public transport • Charging operations managed by Copec Voltex , using 100% renewable energy. • It energizes 121 electric buses. • Historic transformation for the Atacama region, as it delivers a modern, clean and high - quality service to thousands of people.
Page 37
III. HIGHLIGHTS OF THE QUARTER ESG
Page 38
I. CONSOLIDATED RESULTS II. REVIEW BY BUSINESS DIVISION III. HIGHLIGHTS OF THE QUARTER IV. Q&A