SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

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

of the Securities Exchange Act of 1934

For the month of ~~November~~December, 2024

Commission File Number 33-99720

ARAUCO AND CONSTITUTION PULP INC.

(Translation of registrant’s name into English)

El Golf 150

Fourteenth Floor

Santiago, Chile

(Address of principal executive offices)

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

Form 20-F x Form 40-F ¨

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

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

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

Yes ¨ No x

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

ARAUCO AND CONSTITUTION PULP INC

TABLE OF CONTENTS

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

RATIO ANALYSIS OF THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1. ANALYSIS OF FINANCIAL POSITION

a) Statement of financial position

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

Assets	09-30-2024		12-31-2023		Variation
	ThU.S.$		ThU.S.$		ThU.S.$
Current assets		4,096,045		4,175,578		(79,533	)
Non-current assets		13,531,837		13,734,786		(202,949	)
Total assets		17,627,882		17,910,364		-1.58	%

Liabilities	09-30-2024		12-31-2023		Variation
	ThU.S.$		ThU.S.$		ThU.S.$
Current liabilities		1,408,610		2,071,742		(663,132	)
Non-current liabilities		7,726,083		7,829,593		(103,510	)
Non–controlling interests		6,491		6,583		(92	)
Equity attributable to parent company		8,486,698		8,002,446		484,252
Total net equity and liabilities		17,627,882		17,910,364		-1.58	%

As of September 30, 2024, total assets decreased MU.S.$ 282 compared to December 31, 2023, equivalent to a 1.58% variation. This variation was driven mainly by a decrease in assets held for sale (Brazilian entities) and property, plant and equipment, which were offset by a balance increase of cash and cash equivalents

In turn, total liabilities decreased by MU.S.$ 767 principally driven by decreases in financial liabilities.

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

Liquidity ratios	09-30-2024		12-31-2023
Current liquidity (current assets / current liabilities)		2.91		2.02
Acid ratio ((current assets-inventories, biological assets) / current liabilities)		1.54		1.16

Debt indicators	09-30-2024		12-31-2023
Debt to equity ratio (total liabilities / equity)		1.08		1.24
Short-term debt to total debt (current liabilities / total liabilities)		0.15		0.21
Long-term debt to total debt (non-current liabilities / total liabilities)		0.85		0.79

		09-30-2024				09-30-2023
Financial expenses coverage ratio (earnings before taxes + interest expense / interest expense)			2.68				(0.51	)

Activity ratio	09-30-2024		12-31-2023
Inventory turnover-time (cost of sales / inventories + current biological assets)		2.45		2.66
Inventory turnover-time (excluding biological assets) (Cost of sales /inventory)		3.07		3.31
Inventory permanence-days ((inventories + biological assets) /cost of sales)		146.88		135.50
Inventory permanence-days (excluding biological assets) (inventory / cost of sales)		117.19		108.89

As of September 30, 2024, the short-term debt to total debt ratio represented 15% of total liabilities (21% as of December 31, 2023).

Our financial expenses coverage ratio increased from (0.51) to 2.68, mainly due to the profits before taxes generated for the nine month period ended September 30, 2024, compared to the losses before taxes generated in the same period of 2023.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

b) Statement of profit or loss

Profit before income tax

We recorded a profit before income tax of approximately MU.S.$ 515 compared to a loss of approximately MU.S.$ 411 in the same period of 2023. The variation of MU.S.$ 926 is explained by the factors described in the following table:

Item	MU.S.$
Gross profit (loss)		559
Distribution and administrative expenses		42
Other income and expenses		350
Others		(25	)
Net change in profit (loss) before income tax		926

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

Revenues	09-30-2024 ThU.S.$		09-30-2023 ThU.S.$
Pulp		2,558,464		2,014,480
Wood		2,325,535		2,428,465
Other		516		345
Total revenues		4,884,515		4,443,290

Sales costs	09-30-2024 ThU.S.$		09-30-2023 ThU.S.$
Wood		699,243		766,100
Forestry work and other services		517,141		514,695
Depreciation and amortization		442,702		410,447
Other operating costs		1,745,750		1,831,584
Total sales costs		3,404,836		3,522,826

Profitability index	09-30-2024		12-31-2023
Profitability on equity		6.00		(4.41	)
Profitability on assets		2.79		(2.04	)
Return on operating assets		4.20		(0.30	)

Profitability ratios	09-30-2024			09-30-2023
Earnings (loss) per share (U.S.$) (1)		3.0850			(2.2772	)
Net profit (loss) (ThU.S.$) (2)		371,491			(274,418	)
Gross profit (loss) (ThU.S.$)		1,479,679			920,464
Finance costs (ThU.S.$)		(305,974	)		(272,666	)

(1)	Average earnings per share refer to the profit to net equity to parent company.
(2)	Includes non-controlling interest.

EBITDA	09-30-2024 ThU.S.$			09-30-2023 ThU.S.$
Net profit (loss)		371,491			(274,418	)
Finance costs		305,974			272,666
Finance income		(52,835	)		(84,074	)
Income tax expense		143,491			(136,192	)
EBIT		768,121			(222,018	)
Depreciation and amortization		488,859			493,672
EBITDA		1,256,980			271,654
Cost at fair value of the harvest		339,861			362,581
Gain from changes in fair value of biological assets		(30,293	)		(167,174	)
Gains (losses) on exchange difference on translation		17,817			87,307
Others*		23,211			102,798
Adjusted EBITDA		1,607,576			657,166

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

2. MAIN SOURCES OF FINANCING

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

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

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

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

3. MARKET SITUATION

Turnover for the third quarter of 2024 increased by 16% compared to the same period of 2023. This was due to an increase in sales prices, offset by a slight decrease in sales volumes. On a cumulative annual basis, turnover through September 2024 was 30% higher than in the same period of 2023, due to higher sales volumes and higher sales prices.

Overall, the third quarter was more difficult than the previous quarter. Demand for pulp decreased and there was a higher supply of pulp in some markets due to new capacity. Global inventories of both short and long fiber increased considerably throughout the quarter.

In China, the market remained cautious during the third quarter, with paper manufacturers buying pulp prudently to cover their needs, whilst keeping their inventories as low as possible. Demand followed the seasonal trend, but due to overcapacity in paper production, manufacturers’ margins were low. The tissue industry remained more stable, and in line with seasonality. The supply of short fiber pulp increased during the quarter as a consequence of the commissioning of two new pulp mills, one in Brazil and one in China. With respect to pulp prices, the price of both fibers decreased early in the quarter, and later the long fiber price remained stable, while the short fiber price continued to decrease throughout the quarter.

In Europe, during the third quarter, the pulp and paper market was weaker than in the second quarter. The paper industry lowered its demand for pulp, and many companies closed their mills for 1 to 2 weeks for maintenance, taking advantage of the lower demand and the low level of final product orders during the summer months. The tissue industry remained stable during the third quarter, regularly receiving end-product orders, and following the seasonal trend. The price of short fiber decreased throughout the entire quarter, and due to the aforementioned circumstances, some regular customers decreased their purchase volumes. However, it was possible to replace such volume with spot sales.

The textile pulp market remained fairly stable, as in the second quarter. The viscose market remained with low inventories, and with stable mills operating rates, but at a high level. The Lyocell market (i.e., a type of fiber that some of our customers produce) is currently in overcapacity production, which has resulted in Lyocell prices being lower than viscose prices. Textile pulp prices increased at the beginning of the third quarter of 2024, and then remained stable for the rest of the period.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Production in the third quarter of 2024 was slightly higher than production during the same period of 2023. This was mainly due to the scheduled shutdown of the Valdivia mill, which did not operate between April 2023 and August 2023 due to the replacement of the equipment that caught fire in 2022. During the third quarter of 2024, only the Nueva Aldea mill had a scheduled maintenance shutdown.

Wood Products Business

Sawn timber

For sawn timber, this year, sales have been lower than sales in 2023, with respect to both the accumulated figure of the year and the third quarter of each year. This was strongly affected by the closure of two sawmills in Chile, due to supply issues. The first sawmill was closed at the end of 2023, and the second sawmill was closed during the second quarter of 2024, which affected turnover for this year. Approximately 25% of the sawn timber total was produced between both sawmills. A strike that occurred in Puerto Coronel during the first and second quarters of 2024 also affected sales and revenues, which have been recovering during the third quarter of 2024.

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

In Remanufacturing, during the third quarter of 2024, market conditions (including expectations of future Fed tax rates cuts) allowed Arauco to increase prices, especially in the remanufacturing segment and to a lesser extent in MDF. This period was also marked by logistical challenges.

Plywood

The third quarter of 2024 displayed better sales than the same quarter of 2023. Arauco had a recovery in shipments mainly to United States, Europe and Oceania after a complex second quarter for exports due to the strike in Puerto Coronel in Chile.

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

Panels (MDF, PB, Melamine)

During 2024, there was a drop in sales compared to the same period of 2023. It was a difficult start to 2024 in Brazil, Argentina and in general in the rest of America, with a global excess supply of MDF, and low activity. In the third quarter, we have observed a recovery in demand and prices, with sales slightly higher than those of the same quarter of 2023.

In the last two quarters of 2024, demand has been more active (especially in Brazil and United States) and supply has been restricted due to logistical issues.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

4. ANALYSIS OF CASH FLOW

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

	09-30-2024 ThU.S.$			09-30-2023 ThU.S.$
Positive (negative) Cash flow
Net cash flows from (used in) operating activities		994,821			420,905
Cash flows from (used in) financing activities:		(825,640	)		664,929
Share issue		519			-
Obtaining and paying borrowings and bonds		(783,211	)		1,012,596
Payments of lease liabilities		(42,751	)		(58,728	)
Dividends paid		(240	)		(282,690	)
Others		43			(6,249	)
Cash flows from (used in) investment activities:		114,805			(1,036,730	)
Purchase and sale of property, plant and equipment		(479,160	)		(676,570	)
Purchase and sale of biological assets		(277,012	)		(316,972	)
Purchase and sale of intangible assets		(3,295	)		(4,205	)
Additions (disposals), investments in subsidiaries, joint ventures and associates		856,675			(20,028	)
Dividends received		3,371			1,043
Others		14,226			(19,998	)
Positive (negative) net cash flow		283,986			49,104

Our cash flow from operating activities increased to MU.S.$995 for the current period, presenting a positive variation of MU.S.$574 compared to the previous period (positive balance of MU.S.$421 for the same period in 2023), resulting mainly from higher collections of accounts receivable.

The cash flow from financing activities showed a negative balance of MU.S.$826 for the current period (compared to the positive balance of MU.S.$665 for the same period in 2023). This was mainly due to (i) a decrease in borrowings received, and (ii) an increase of payments of liabilities for borrowings, offset by higher dividends payments in 2023.

Regarding the cash flow from investment activities, the positive balance of MU.S.$115 of the current period compared to a negative balance of MU.S.$1,037 for the same period of 2023, is mainly due to the sale of Brazilian entities and a decrease in payment for purchases of property, plants and equipment, which was partially offset by payments for purchases companies in Uruguay (50%).

5. MARKET RISK ANALYSIS

In respect of the economic risks resulting from interest rate variations, the Company maintained, as of September 30, 2024, a ratio of fixed rate debt to total consolidated debt of approximately 88,7%, which we believe is consistent with industry standards.

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

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

The interim consolidated financial statements as of September 30, 2024 include a detailed analysis of the risks associated with the business of Arauco (see Note 23).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	Note		09-30-2024		12-31-2023
			ThU.S.$		ThU.S.$
Assets
Current assets
Cash and cash equivalents		5-23		842,847		570,008
Other current financial assets		23		4,913		45,604
Other current non-financial assets		25		280,212		240,254
Trade and other current receivables		23		955,996		997,902
Accounts receivable from related companies		13-23		9,809		2,616
Current inventories		4		1,555,922		1,399,846
Current biological assets		20		377,819		370,957
Current tax assets		6		64,757		119,031
Total current assets other than assets or disposal groups classified as held for sale				4,092,275		3,746,218
Non-current assets or disposal groups classified as held for sale		22		3,770		429,360
Total current assets				4,096,045		4,175,578
Non-current assets
Other non-current financial assets		23		49,937		33,512
Other non-current non-financial assets		25		87,671		99,174
Non-current receivables		23		71,538		108,501
Investments accounted for using equity method		15-16		429,711		423,611
Intangible assets other than goodwill		19		57,295		66,431
Goodwill		17		53,432		55,891
Property, plant and equipment		7		9,480,013		9,607,116
Right of use assets		8		639,183		600,361
Non-current biological assets		20		2,597,374		2,651,622
Deferred tax assets		6		65,683		88,567
Total non-current assets				13,531,837		13,734,786
Total assets				17,627,882		17,910,364

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)

	Note		09-30-2024			12-31-2023
			ThU.S.$			ThU.S.$
Equity and liabilities
Liabilities
Current liabilities
Other current financial liabilities		23		358,982			1,082,525
Current lease liabilities		8-23		40,213			47,242
Trade and other current payables		23		720,420			760,455
Accounts payable to related companies		13-23		7,891			6,958
Other short-term provisions		18		2,167			3,905
Current tax liabilities		6		28,563			13,318
Current provisions for employee benefits		10		7,156			7,863
Other current non-financial liabilities		25		243,218			50,148
Total current liabilities other than liabilities included in disposal groups classified as held for sale				1,408,610			1,972,414
Liabilities included in disposal groups classified as held for sale		22		-			99,328
Total current liabilities				1,408,610			2,071,742
Non-current liabilities
Other non-current financial liabilities		23		5,463,232			5,521,568
Non-current lease liabilities		8-23		565,685			512,140
Non-current payables				41,466			50,577
Non-current accounts payable to related companies		13-23		26,251			22,981
Other long-term provisions		18		33,858			28,651
Deferred tax liabilities		6		1,465,344			1,543,624
Non-current provisions for employee benefits		10		83,337			86,462
Other non-current non-financial liabilities		25		46,910			63,590
Total non-current liabilities				7,726,083			7,829,593
Total liabilities				9,134,693			9,901,335
Equity
Issued capital		3		803,618			803,618
Retained earnings				8,262,505			8,034,963
Other reserves				(579,425	)		(836,135	)
Equity attributable to parent company				8,486,698			8,002,446
Non-controlling interests				6,491			6,583
Total equity				8,493,189			8,009,029
Total equity and liabilities				17,627,882			17,910,364

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

	Note		January – September						July - September
			2024			2023			2024			2023
			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Statements of profit or loss
Revenue		9		4,884,515			4,443,290			1,695,244			1,594,901
Cost of sales		3		(3,404,836	)		(3,522,826	)		(1,192,207	)		(1,293,167	)
Gross profit (loss)				1,479,679			920,464			503,037			301,734
Other income		3		405,687			311,688			339,472			76,912
Distribution costs		3		(516,840	)		(517,580	)		(181,977	)		(184,460	)
Administrative expenses		3		(429,113	)		(470,387	)		(143,884	)		(159,294	)
Other expense by function		3		(137,562	)		(393,683	)		(53,708	)		(146,086	)
Profit (loss) from operating activities				801,851			(149,498	)		462,940			(111,194	)
Finance income		3		52,835			84,074			14,226			33,115
Finance costs		3		(305,974	)		(272,666	)		(99,788	)		(100,097	)
Share of profit (loss) of associates and joint ventures accounted for using equity method		3-15		(15,913	)		14,787			(6,028	)		(3,191	)
Gains (losses) on exchange differences on translation				(17,817	)		(87,307	)		(4,536	)		(43,707	)
Profit (loss) before income tax				514,982			(410,610	)		366,814			(225,074	)
Income tax (expense) benefit		6		(143,491	)		136,192			(136,187	)		52,073
Net profit (loss)				371,491			(274,418	)		230,627			(173,001	)
Net profit (loss) attributable to
Net profit (loss) attributable to parent company				371,668			(274,341	)		230,787			(173,026	)
Net profit (loss) attributable to non-controlling interests				(177	)		(77	)		(160	)		25
Net profit (loss)				371,491			(274,418	)		230,627			(173,001	)
Basic and diluted earnings (loss) per share (in U.S.$ per share)
Basic and diluted earnings (loss) per share from continuing operations		26		3.0850384			(2.2771735	)		1.9156526			(1.4362061	)
Basic and diluted earnings (loss) per share				3.0850384			(2.2771735	)		1.9156526			(1.4362061	)

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Note		January - September						July – September
			2024			2023			2024			2023
			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Net profit (loss)				371,491			(274,418	)		230,627			(173,001	)
Components of other comprehensive income that will not be reclassified to profit or loss before tax:
Remeasurements of defined benefit plans
Other comprehensive income before tax gains losses on remeasurements of defined benefit plans		10		(211	)		(2,900	)		360			1,371
Other comprehensive income that will not be reclassified to profit or loss before tax				(211	)		(2,900	)		360			1,371
Components of other comprehensive income that will be reclassified to profit or loss before tax:
Exchange differences on translation
Gains (losses) on exchange differences on translation, before tax		11		385,648			60,477			528,439			(42,420	)
Other comprehensive income before tax exchange differences on translation				385,648			60,477			528,439			(42,420	)
Cash flow hedges
Gains (losses) on cash flow hedges, before tax		23		14,755			(53,404	)		6,125			(23,706	)
Reclassification adjustments on cash flow hedges, before tax		23		(2,916	)		209			-			-
Other comprehensive income before tax cash flow hedges				11,839			(53,195	)		6,125			(23,706	)
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax				8,894			(21	)		7,869			634
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss before tax				8,894			(21	)		7,869			634
Other Comprehensive income that will be reclassified to profit or loss before tax				406,381			7,261			542,433			(65,492	)
Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss before tax
Income tax relating to remeasurements of defined benefit plans of other comprehensive income		6		57			783			(97	)		(370	)
Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss before tax				57			783			(97	)		(370	)
Income tax relating to components of other comprehensive income that will be reclassified to profit or loss before tax
Income tax relating to exchange differences on translation of other comprehensive income		6		(135,171	)		-			(137,358	)		-
Income tax relating to cash flow hedges of other comprehensive income		6		(1,156	)		17,376			372			9,584
Income tax relating to share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss				(1,857	)		(148	)		(1,643	)		(126	)
Income tax relating to components of other comprehensive income that will be reclassified to profit or loss				(138,184	)		17,228			(138,629	)		9,458
Other comprehensive income (loss)				268,043			22,372			404,067			(55,033	)
Total comprehensive income (loss)				639,534			(252,046	)		634,694			(228,034	)
Comprehensive income (loss) attributable to
Comprehensive income (loss), attributable to owners of parent company				640,077			(251,970	)		634,921			(228,060	)
Comprehensive income (loss), attributable to non-controlling interests				(543	)		(76	)		(227	)		26
Total comprehensive income (loss)				639,534			(252,046	)		634,694			(228,034	)

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

09-30-2024	Issued capital ThU.S.$		Reserve of exchange differences on translation ThU.S.$			Reserve of cash flow hedges ThU.S.$			Reserve of actuarial losses on defined benefit plans ThU.S.$			Other reserves ThU.S.$			Total other reserves ThU.S.$			Retained earnings ThU.S.$			Equity attributable to owners of parent ThU.S.$			Non- controlling interests ThU.S.$			Total equity ThU.S.$
Opening balance at 01-01-2024		803,618		(840,877	)		(64,952	)		(37,364	)		107,058			(836,135	)		8,034,963			8,002,446			6,583			8,009,029
Changes in Equity:
Comprehensive income
Net profit		-		-			-			-			-			-			371,668			371,668			(177	)		371,491
Other comprehensive income, net of tax		-		250,843			10,683			(154	)		7,037			268,409			-			268,409			(366	)		268,043
Comprehensive income		-		250,843			10,683			(154	)		7,037			268,409			371,668			640,077			(543	)		639,534
Equity issue		-		-			-			-			-			-			-			-			631			631
Dividends		-		-			-			-			-			-			(188,793	)		(188,793	)		(176	)		(188,969	)
Increase (decrease) through transfers and other changes equity		-		-			-			-			(11,699	)		(11,699	)		11,699			-			-			-
Increase (decrease) due to changes in the participation of subsidiaries that do not involve loss of control		-		-			-			-			-			-			32,968			32,968			(4	)		32,964
Changes in equity		-		250,843			10,683			(154	)		(4,662	)		256,710			227,542			484,252			(92	)		484,160
Closing balance at 09-30-2024		803.618		(590,034	)		(54,269	)		(37,518	)		102,396			(579,425	)		8,262,505			8,486,698			6,491			8,493,189

09-30-2023	Issued capital ThU.S.$		Reserve of exchange differences on translation ThU.S.$			Reserve of cash flow hedges ThU.S.$			Reserve of actuarial losses on defined benefit plans ThU.S.$			Other reserves ThU.S.$			Total other reserves ThU.S.$			Retained earnings ThU.S.$			Equity attributable to owners of parent ThU.S.$			Non- controlling interests ThU.S.$			Total equity ThU.S.$
Opening balance at 01-01-2023		803,618		(1,097,329	)		(10,112	)		(35,374	)		93,091			(1,049,724	)		8,500,901			8,254,795			5,189			8,259,984
Changes in Equity:
Comprehensive income
Net profit		-		-			-			-			-			-			(274,341	)		(274,341	)		(77	)		(274,418	)
Other comprehensive income, net of tax		-		60,476			(35,819	)		(2,117	)		(169	)		22,371			-			22,371			1			22,372
Comprehensive income		-		60,476			(35,819	)		(2,117	)		(169	)		22,371			(274,341	)		(251,970	)		(76	)		(252,046	)
Equity issue		-		-			-			-			-			-			-			-			62			62
Dividends		-		-			-			-			-			-			(92,719	)		(92,719	)		(126	)		(92,845	)
Increase (decrease) through transfers and other changes equity		-		-			-			-			11,981			11,981			(11,981	)		-			-			-
Increase (decrease) due to changes in the participation of subsidiaries that do not involve loss of control		-		-			-			-			-			-			(663	)		(663	)		657			(6	)
Changes in equity		-		60,476			(35,819	)		(2,117	)		11,812			34,352			(379,704	)		(345,352	)		517			(344,835	)
Closing balance at 09-30-2023		803,618		(1,036,853	)		(45,931	)		(37,491	)		104,903			(1,015,372	)		8,121,197			7,909,443			5,706			7,915,149

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

	January - September
	2024			2023
	ThU.S.$			ThU.S.$
STATEMENTS OF CASH FLOWS
Cash flows from (used in) operating activities
Classes of cash receipts from operating activities
Receipts from sales of goods and rendering of services		5,178,408			4,605,791
Receipts from rents and subsequent sales of such assets		16,900			10,895
Other cash receipts from operating activities		683,221			483,997
Classes of cash payments
Payments to suppliers for goods and services		(3,951,248	)		(3,853,774	)
Payments to and on behalf of employees		(467,100	)		(555,904	)
Payments to manufacture or acquire assets held for rental to others and subsequently held for sale		(2,158	)		(8,692	)
Other cash payments from operating activities		(238,752	)		(126,024	)
Interest paid		(246,049	)		(203,428	)
Interest received		56,827			94,729
Income taxes (paid) refunded		(37,111	)		(27,365	)
Other inflows (outflows) of cash, net		1,883			680
Net cash flow from (used in) operating activities		994,821			420,905
Cash flows from (used in) investing activities
Cash flow from loss of control of subsidiaries or other businesses		954,698			-
Cash flow used in obtaining control of subsidiaries or other businesses		(72,038	)		-
Cash flow used in the purchase of non-controlling interests		(3,600	)		-
Other cash receipts from sale equity or debt instruments from other entities		6,108			-
Other cash payments to acquire equity or debt instruments from other entities		(26,526	)		(8,873	)
Other cash payments to acquire interest in joint ventures		(1,967	)		(11,155	)
Loans to related entities		(5,500	)		-
Proceeds from sales of property, plant and equipment		18,619			5,833
Purchase of property, plant and equipment		(497,779	)		(682,403	)
Proceeds from sales of intangible assets		-			122
Purchase of intangible assets		(3,295	)		(4,327	)
Proceeds from other long-term assets		4,414			4,156
Purchase of other long-term assets		(281,426	)		(321,128	)
Dividends received		3,371			1,043
Other inflows (outflows) of cash, net		19,726			(19,998	)
Cash flows from (used in) investing activities		114,805			(1,036,730	)
Cash flows from (used in) financing activities
Proceeds from issuing shares		519			-
Total proceeds from borrowings		1,111,908			1,731,702
Proceeds from long-term borrowings		86,509			885,649
Proceeds from short-term borrowings		1,025,399			846,053
Repayments of borrowings		(1,895,119	)		(719,106	)
Payments of lease liabilities		(42,751	)		(58,728	)
Dividends paid		(240	)		(282690	)
Other inflows (outflows) of cash, net		43			(6,249	)
Cash flows from (used in) financing activities		(825,640	)		664,929
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes		283,986			49,104
Effect of exchange rate changes on cash and cash equivalents		(11,147	)		(59,767	)
Net increase (decrease) of cash and cash equivalents		272,839			(10,663	)
Cash and cash equivalents, at the beginning of the period		570,008			667,207
Cash and cash equivalents, at the end of the period		842,847			656,544

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTES TO the INTERIM consolidated financial statements as of September 30, 2024 and 2023 and as of DECEMBER 31, 2023

NOTE 1. PRESENTATION OF INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Entity Information

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

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

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

As of September 30, 2024, Arauco is controlled by Empresas Copec S.A., tax identification number 90.690.000-9, which owns 99.999916% of Arauco, and is registered in the Securities Registry as No. 0028. Each of the above mentioned companies is subject to the oversight of the CMF.

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

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

Presentation of interim consolidated financial statements

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

- Interim consolidated statements of financial position as of September 30, 2024 and December 31, 2023.

- Interim consolidated statements of profit or loss for the nine month periods ended September 30, 2024 and 2023, and for the periods of three months between July and September 2024 and 2023.

- Interim consolidated statements of comprehensive income for the nine month periods ended September 30, 2024 and 2023, and for the periods of three months between July and September 2024 and 2023.

- Interim consolidated statements of changes in equity for the nine month periods ended September 30, 2024 and 2023.

- Interim consolidated statements of cash flows for the nine month periods ended September 30, 2024 and 2023.

- Explanatory disclosures (notes).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Period covered by the interim consolidated financial statements

As of September 30, 2024 and December 31, 2023 and for the three and nine month periods ended September 30, 2024 and 2023.

Date of approval of the interim consolidated financial statements

These interim consolidated financial statements were approved by the Board of Directors of the Company (the “Board”) at the Extraordinary Meeting No. 725 on November 20, 2024.

Abbreviations used in this report:

IFRS - International Financial Reporting Standards

IASB - International Accounting Standards Board

IAS - International Accounting Standards

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

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

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

ICMS – Tax movement of inventories and services (Brazil)

ThCLP$ - Thousands of Chilean pesos

ThR$ - Thousands of Brazilian real

Functional and Presentation Currency

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Summary of significant accounting policies

a) Basis for preparation of the consolidated financial statements

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

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

b) Critical accounting estimates and judgments

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

- Biological assets

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

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

- Litigation and contingencies

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

c) Consolidation

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

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

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

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

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

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

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

c) rights arising from other contractual arrangements; and

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

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

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

d) Segments

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

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

· Pulp

· Wood products

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

e) Functional currency

(i) Functional currency

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

(ii) Translation to the presentation currency of Arauco

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

(iii) Foreign currency transactions

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

f) Cash and cash equivalents

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

g) Financial instruments

Financial assets

Initial classification

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Subsequent measurement

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

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

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

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

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

Derivative financial instruments are explained in Note 1 h).

Financial liabilities

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Financial liabilities at fair value through profit or loss

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

Financial liabilities at amortized cost

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

h) Derivative financial instruments

(i) Derivative financial instruments

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

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

(ii) Embedded derivatives

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

(iii) Hedge accounting

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

-Fair value hedges

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

-Cash flow hedges

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

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

i) Inventories

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

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

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

Biological assets are transferred to inventories when forests are harvested.

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

j) Non-current assets held for sale

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

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

k) Business combinations

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

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

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

l) Investments in associates and joint arrangements

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

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

m) Intangible assets other than goodwill

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

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

(i) Computer software

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

(ii) Water rights, easements and other rights

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

(iii) Customers relationships

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

n) Goodwill

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

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

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

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

o) Property, plant and equipment

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

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

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

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

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

p) Leases

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

The cost of the asset for right of use comprises:

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

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

- The initial direct costs incurred by the lessee; and

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

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

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

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

q) Biological assets

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

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

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

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

r) Income taxes

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

s) Provisions

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

t) Revenue recognition

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

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

(i) Revenue recognition from the sale of goods

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

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

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

The main Incoterms used by Arauco are the following:

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

(ii) Revenue recognition from rendering of services

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

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

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

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

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

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

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

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

u) Minimum dividend

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

The current policy, stablished by the directors, is that an amount equivalent to the 30% of the distributable net income for each fiscal year will be distributed as dividends. Nevertheless, the Board of Directors may decide to distribute and pay dividends to the shareholders, to the extent that it expects the year to finalize with positive results and that the Company’s liquidity allows such distribution and payment.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

v) Earning per share

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

w) Impairment

Non-financial assets

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

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

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

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

Goodwill

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

Financial assets

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

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

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

x) Employee benefits

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

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

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

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

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

y) Employee vacations

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

z) Recent accounting pronouncements

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

Amendments and improvements	Content	Mandatory application for annual periods beginning on or after
IAS 1	Non-current liabilities with covenants	January 1, 2024
	These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions.
IFRS 16	Leases on sale and leaseback	January 1, 2024
	These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.
IAS 7 and IFRS 7	Supplier finance arrangements	January 1, 2024
	These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and exposure to liquidity risk.

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

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

Amendments and improvements	Content	Mandatory application for annual periods beginning on or after
IAS 21	Lack of Exchangeability	January 1, 2025
	An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose.
IFRS 9 and IFRS 7	Classification and Measurement of Financial Instruments	January 1, 2026
	Clarify the requirements, give the guidance, add new disclosures for certain instruments.
IFRS 18	Presentation and Disclosure in Financial Statements	January 1, 2027
	This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss.
IFRS 19	Subsidiaries without Public Accountability: Disclosures	January 1, 2027
	An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 2. ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES

Changes to accounting policies

As of September 30, 2024, there had been no changes in the accounting policies with respect to the 2023 financial year.

Changes to accounting estimates

As of September 30, 2024, there had been no changes in the methodologies for calculating the accounting estimates with respect to the 2023 financial year.

NOTE 3. DISCLOSURE OF OTHER INFORMATION

a) Disclosure of information on issued capital

As of September 30, 2024, the shareholders composition according to the amount of shares owned was as follows:

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

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

	09-30-2024		12-31-2023
Description of shares by type of capital in ordinary shares		100% of Capital corresponds to ordinary shares
Number of authorized shares by type of capital in ordinary Shares		120,474,350
Nominal value of shares by type of capital in ordinary shares		U.S.$ 6.6704 per share
Amount of capital in shares by type of ordinary shares that constitute capital		ThU.S.$ 803,618
		09-30-2024		12-31-2023
Number of shares issued and fully paid by type of capital in ordinary shares		120,474,350

b) Dividends paid

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

The amount of ThU.S.$ 188,793 presented in the interim consolidated statement of changes in equity for the period ended September 30, 2024, contains the minimum dividend provision. As of December 31, 2023 there was no minimum dividend provision for the 2023 losses.

See Note 26 for details.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

c) Disclosure of information on reserves

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

Reserves of exchange differences on translation

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

Reserves of cash flow hedges

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

Reserve of actuarial losses in defined benefit plans

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

Other reserves

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

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

The table below sets forth other income, other expenses, finance income, finance costs and share of profit (loss) of associates and joint ventures for the three and nine months period ended September 30, 2024 and 2023 are as follows:

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

	January - September						July - September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Classes of Other Income
Total Other Income		405,687			311,688			339,472			76,912
Gain from changes in fair value of biological assets (Note 20) (1)		30,293			167,174			4,526			58,487
Net income from insurance compensation		15,017			80,711			3,356			6,464
Revenue from export promotion		843			704			278			255
Lease income		3,653			8,340			1,386			1,751
Gain on sales of assets		11,909			10,258			7,786			5,123
Access easement		-			122			-			-
Recovery of tax credits		179			4,184			179			492
Compensations received		43			6,991			-			574
Gain on sales of subsidiaries and associate		313,572			-			313,569			-
Reversal of impairment loss assets		3,784			6,562			3,495			-
Reimbursement provisions (legal and others)		2,276			11,727			504			701
Other operating income		24,118			14,915			4,393			3,065
Classes of Other Expenses by function
Total Other Expenses by function		(137,562	)		(393,683	)		(53,708	)		(146,086	)
Depreciation for leased assets		(1,892	)		(1,094	)		(684	)		(400	)
Provision legal expenses		(11,157	)		(9,700	)		(6,371	)		(2,997	)
Impairment provision for property, plant and equipment, provision for inventory obsolescence, withdrawals and others		(25,661	)		(89,573	)		(10,817	)		(84,040	)
Operating expenses related to restructuring or from plants stoppage or closed		(21,272	)		(222,489	)		(3,622	)		(41,577	)
Expenses related to projects		(20,779	)		(6,040	)		(9,587	)		(2,462	)
Loss by leasses		(746	)		-			-			-
Loss of asset sales		(8,993	)		(9,227	)		(3,608	)		(5,307	)
Loss and repair of assets		(2,404	)		(8,434	)		(490	)		(47	)
Loss of forest due to fires		(4,331	)		(22,337	)		(1,954	)		(2,312	)
Other Taxes		(24,748	)		(16,267	)		(11,360	)		(4,854	)
Research and development expenses		(1,192	)		(2,932	)		(370	)		(876	)
Fines, readjustments and interest		(628	)		(783	)		(97	)		(100	)
Loss on sale of permanent investments		(20	)		-			-			-
Loss of tax credits		(1,713	)		(841	)		(629	)		(106	)
Other expenses		(12,026	)		(3,966	)		(4,119	)		(1,008	)
Classes of Finance Income
Total Finance Income		52,835			84,074			14,226			33,115
Finance income by mutual funds - term deposits		37,201			70,396			8,118			27,229
Finance income resulting from derivatives		3			8			1			8
Other finance income		15,631			13,670			6,107			5,878
Classes of Finance Costs
Total Finance Costs		(305,974	)		(272,666	)		(99,788	)		(100,097	)
Interest expense, Bank borrowings		(68,579	)		(56,114	)		(20,938	)		(22,741	)
Interest expense, Bonds		(157,825	)		(159,538	)		(50,831	)		(53,704	)
Interest expense resulting from derivatives		(28,713	)		(18,894	)		(9,643	)		(10,114	)
Interest expense for right-of-use (1)		(21,518	)		(13,492	)		(7,829	)		(6,822	)
Other finance costs		(29,339	)		(24,628	)		(10,547	)		(6,716	)
Share of profit (loss) of associates and joint ventures accounted for using equity method
Total		(15,913	)		14,787			(6,028	)		(3,191	)
Investments in associates (2)		(5,152	)		3,384			1,191			1,437
Investments in joint ventures		(10,761	)		11,403			(7,219	)		(4,628	)

(1)	In 2024, includes interest expense for the Brazilian companies right-of-use assets that were previously classified as held for sale and sold during the period, through the sale date.
(2)	In 2024, includes the share of the profit of the associate Forestal Vale do Corisco S.A. that were previously classified as held for sale and sold during the period, through the sale date.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

	January – September				July – September
Cost of sales (*)	2024		2023		2024		2023
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Timber		699,243		766,100		227,244		308,411
Forestry labor costs and other services		517,141		514,695		199,501		192,388
Depreciation and amortization		426,591		388,933		145,850		145,332
Depreciation for right of use		16,111		21,514		4,359		9,214
Maintenance costs		256,845		264,623		90,681		89,583
Chemical costs		480,676		495,254		173,027		171,638
Sawmill costs		95,291		92,592		39,527		34,890
Other raw materials		202,914		219,655		58,512		77,939
Other indirect costs		162,660		173,767		58,166		58,354
Energy and fuel		203,441		206,902		74,068		73,503
Cost of electricity		37,046		51,334		13,669		17,548
Staff expenses		306,877		327,457		107,603		114,367
Total		3,404,836		3,522,826		1,192,207		1,293,167

(*) Total amount is comprised of the cost of inventory sales for ThU.S.$3,316,602 as of September 30, 2024 (ThU.S.$ 3,430,961 as of September 30, 2023) and the cost of rendering services for ThU.S.$88,234 as of September 30, 2024 (ThU.S.$ 91,865 as of September 30, 2023).

	January - September				July - September
Distribution costs	2024		2023		2024		2023
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Selling costs		27,191		30,492		10,657		10,624
Commissions		12,363		11,009		4,117		4,531
Insurance		5,009		5,737		2,159		1,539
Provision for doubtful accounts		1,642		515		1,468		8
Other selling costs		8,177		13,231		2,913		4,546
Shipping and freight costs		489,649		487,088		171,320		173,836
Port services		52,084		47,475		19,358		16,445
Freights		393,287		393,446		138,689		141,933
Depreciation for right of use		869		831		200		280
Shipping internment, warehousing, stowage, customs and other costs		43,409		45,336		13,073		15,178
Total		516,840		517,580		181,977		184,460

	January - September				July – September
Administrative expenses	2024		2023		2024		2023
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Wages and salaries		166,948		189,020		56,768		63,406
Marketing, advertising, promotion and publications expenses		10,696		10,760		3,960		4,325
Insurances		37,462		39,693		11,907		17,319
Depreciation and amortization		32,369		32,073		10,769		11,222
Depreciation for right of use		5,337		5,531		1,877		1,884
Computer services		21,712		29,388		4,812		8,783
Lease of offices, other property and vehicles		5,684		5,902		1,914		2,225
Donations, contributions, scholarships		4,373		7,049		958		2,244
Fees (legal and technical advisors)		26,902		27,037		10,713		8,820
Property taxes, city permits and rights		24,386		26,144		8,410		7,902
Cleaning services, security services and transportation		17,439		21,719		5,891		7,009
Third-party variable services (manoeuvres, logistics)		29,759		28,842		9,754		8,558
Basic services (electricity, telephone, water)		5,351		5,785		1,600		1,679
Maintenance and repair		4,777		5,143		1,468		1,552
Seminars, courses, training materials		2,395		2,091		747		550
Travels, clothing and safety equipment, environmental expenses, audits and others		33,523		34,210		12,336		11,816
Total		429,113		470,387		143,884		159,294

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 4. INVENTORIES

	09-30-2024		12-31-2023
Components of inventory	ThU.S.$		ThU.S.$
Raw materials		182,086		141,554
Production supplies		211,239		202,924
Work in progress		64,037		84,644
Finished godos		825,808		721,267
Spare parts		272,752		249,457
Total inventories		1,555,922		1,399,846

Inventories recognized as cost of sales as of September 30, 2024 were ThU.S.$3,316,602 (ThU.S.$ 3,430,961 as of September 30, 2023).

In order to have inventories recorded at net realizable value, inventories are subject to evaluations and obsolescence provision recognition as of September 30, 2024, a net increase of inventories was recognized associated with a lower provision of ThU.S.$5,716 (ThU.S.$51,906 as of September 30, 2023). As of September 30, 2024, the amount of provision arises to the sum of ThU.S.$105,015 (ThU.S.$110,731 as of December 31, 2023).

As of September 30, 2024, there were inventory write-offs of ThU.S.$255 (ThU.S.$1,561 as of September 30, 2023) which are presented in the interim consolidated statements of profit or loss within cost of sales.

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 5. CASH AND CASH EQUIVALENTS

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

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

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

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

	09-30-2024		12-31-2023
Components of Cash and Cash Equivalents	ThU.S.$		ThU.S.$
Cash on hand		76		60
Balances with Banks		510,347		337,973
Short-term deposits		169,973		99,167
Mutual funds		162,451		132,808
Total		842,847		570,008

The risk classification of the Company’s mutual funds as of September 30, 2024 and December 31, 2023 is shown below.

	09-30-2024 ThU.S.$		12-31-2023 ThU.S.$
AAAfm		150,121		83,712
No classification		12,330		49,096
Total Mutual Funds		162,451		132,808

Changes in financial liabilities

		09-30-2024
		Bank borrowings			Hedging liabilities			Bonds and promissory notes			Other financial liabilities, Total
		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance January 1			1,499,051			108,004			4,997,038			6,604,093
	(+) Borrowings obtained		1,111,908			-			-			1,111,908
Cash flows	(-) Borrowings paid		(1,370,436	)		(2,916	)		(521,767	)		(1,895,119	)
	(-) Interest paid		(69,680	)		(17,145	)		(138,267	)		(225,092	)
(+) Accrued interest			66,978			18,590			152,304			237,872
(+/-) Exchange rate difference			2,777			-			9,687			12,464
(+/-) Changes in fair value			-			(13,529	)		-			(13,529	)
(+/-) Other movements			(16,516	)		-			6,133			(10,383	)
Closing balance			1,224,082			93,004			4,505,128			5,822,214

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

		Lease liabilities
		09-30-2024			12-31-2023
		ThU.S.$			ThU.S.$
Opening balance January 1			559,382			264,224
Cash flows	(-) Borrowings paid		(42,751	)		(73,806	)
	(-) Interest paid		(20,957	)		(20,114	)
(+) Accrued interest			21,021			20,445
(+/-) Inflation adjustment			(7	)		(404	)
(+/-) Exchange rate difference			(1,127	)		(521	)
(+) Business combination			-			134
(-) Decrease through transfer to liabilities included in disposal groups classified as held for sale			-			(18,795	)
(+) Increase due to new leases liabilities			131,778			376,259
(+/-) Other movements			(41,441	)		11,960
Closing balance			605,898			559,382

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 6. INCOME TAXES

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

Deferred tax assets

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

	09-30-2024			12-31-2023
Deferred tax assets	ThU.S.$			ThU.S.$
Deferred tax assets relating to liabilities provisions		13,468			14,008
Deferred tax assets relating to investments (*)		-			78,061
Deferred tax assets relating to post-employment benefits		24,737			25,726
Deferred tax assets relating to property, plant and equipment		89,600			80,410
Deferred tax assets relating to impairment provision		12,429			12,319
Deferred tax assets relating to financial instruments		81,150			82,535
Deferred tax assets relating to tax loss carryforward		236,154			233,468
Deferred tax assets relating to biological assets		4,353			-
Deferred tax assets relating to inventories		24,186			25,011
Deferred tax assets relating to provisions for income		15,486			16,807
Deferred tax assets relating to allowance for doubtful accounts		2,825			2,384
Deferred tax assets relating to intangible revaluation		89			35
Deferred tax assets relating to other deductible temporary differences		74,133			39,065
Total deferred tax assets		578,610			609,829
Offsetting presentation		(512,927	)		(521,262	)
Net effect		65,683			88,567

(*) See explanatory text in note 22

Certain subsidiaries of Arauco mainly in Chile and Brazil, as of the date of these interim consolidated financial statements, present tax losses for which we estimate that, given the projection of future profits, will allow the recovery of the deferred tax assets recorded. The total amount of these tax losses is ThU.S.$953,659 (ThU.S.$ 956,949 as of December 31, 2023).

In addition, as of the closing date of these interim consolidated financial statements, there are ThU.S.$227,013 (ThU.S.$ 251,396 as of December 31, 2023) of non-recoverable tax losses mainly from subsidiaries in the United States and Netherlands. The estimated recovery period exceeds the expiry date of such tax losses.

Deferred tax liabilities

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

	09-30-2024			12-31-2023
Deferred tax liabilities	ThU.S.$			ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,371,722			1,415,101
Deferred tax liabilities relating to financial instruments		21,644			26,766
Deferred tax liabilities relating to biological assets		436,337			475,592
Deferred tax liabilities relating to inventory		67,691			57,619
Deferred tax liabilities relating to prepaid expenses		35,622			36,837
Deferred tax liabilities relating to intangible		9,007			10,420
Deferred tax liabilities relating to other taxable temporary differences		36,248			42,551
Total deferred tax liabilities		1,978,271			2,064,886
Offsetting presentation		(512,927	)		(521,262	)
Net effect		1,465,344			1,543,624

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

The effect of this period in current and deferred tax liabilities related to financial hedging instruments corresponds to a debit of ThU.S.$1,156 as of September 30, 2024 (credit of ThU.S.$17,376 as of September 30, 2023), which is presented net in reserves for cash flow hedges in the interim consolidated statement of changes in equity.

Reconciliation of deferred tax assets and liabilities

	Opening balance		Deferred tax income			Deferred tax of ítems charged			Increase (decrease) business		Increase (decrease) net exchange			Closing balance
	01-01-2024		(expenses)			to equity			combination		differences			09-30-2024
Deferred tax assets	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Deferred tax assets relating to liabilities provisions		14,008		(21	)		-			-		(519	)		13,468
Deferred tax assets relating to investments		78,061		57,110			(135,171	)		-		-			-
Deferred tax assets relating to post-employment benefits		25,726		(1,043	)		57			-		(3	)		24,737
Deferred tax assets relating to property, plant and equipment		80,410		8,683			-			644		(137	)		89,600
Deferred tax assets relating to impairment provision		12,319		1,171			-			-		(1,061	)		12,429
Deferred tax assets relating to financial instruments		82,535		2,102			(2,394	)		-		(1,093	)		81,150
Deferred tax assets relating to tax loss carry forward		233,468		5,315			-			-		(2,629	)		236,154
Deferred tax assets relating to biological assets		-		4,353			-					-			4,353
Deferred tax assets relating to inventories		25,011		(670	)		-			-		(155	)		24,186
Deferred tax assets relating to provisions for income		16,807		(1,327	)		-			-		6			15,486
Deferred tax assets relating to allowance for doubtful accounts		2,384		446			-			-		(5	)		2,825
Deferred tax assets relating to intangible revaluation		35		54			-			-		-			89
Deferred tax assets relating to other deductible temporary differences		39,065		35,999			-			-		(931	)		74,133
Total deferred tax assets		609,829		112,172			(137,508	)		644		(6,527	)		578,610

	Opening balance		Deferred tax (income)			Deferred tax of ítems charged			Increase (decrease) business		Increase (decrease) net exchange			Closing balance
	01-01-2024		expenses			to equity			combination		differences			09-30-2024
Deferred tax liabilities	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$			ThU.S.$
Deferred tax liabilities relating to property, plant and equipment		1,415,101		(37,449	)		-			-		(5,930	)		1,371,722
Deferred tax liabilities relating to financial instruments		26,766		(3,885	)		(1,238	)		-		1			21,644
Deferred tax liabilities relating to biological assets		475,592		(41,522	)		-			2,649		(382	)		436,337
Deferred tax liabilities relating to inventory		57,619		10,098			-			-		(26	)		67,691
Deferred tax liabilities relating to prepaid expenses		36,837		(1,214	)		-			-		(1	)		35,622
Deferred tax liabilities relating to intangible		10,420		(566	)		-			-		(847	)		9,007
Deferred tax liabilities relating to other taxable temporary differences		42,551		(4,295	)		-			-		(2,008	)		36,248
Total deferred tax liabilities		2,064,886		(78,833	)		(1,238	)		2,649		(9,193	)		1,978,271

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Temporary differences

The following tables summarize the deductible and taxable temporary differences:

Detail of classes of deferred tax temporary differences	09-30-2024				12-31-2023
	Deductible		Taxable		Deductible		Taxable
	difference		difference		difference		Difference
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Deferred tax assets		342,456		-		376,361		-
Deferred tax assets - tax loss carry forward		236,154		-		233,468		-
Deferred tax liabilities		-		1,978,271		-		2,064,886
Total		578,610		1,978,271		609,829		2,064,886

Detail of temporary difference income and loss amounts	January – September				July - September
	2024		2023		2024			2023
	ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$
Deferred tax assets (*)		106,616		62,558		86,882			29,413
Deferred tax assets - tax loss carry forward (*)		2,307		151,579		(6,195	)		46,008
Deferred tax liabilities (*)		76,152		21,842		15,165			21,728
Total		185,075		235,979		95,852			97,149

(*) Includes deferred tax expenses related to temporary differences (ThU.S.$ 2,922 as of September 30, 2024), and tax losses (ThU.S.$ 3,008 as of September 30, 2024) generated by Brazilian companies previously classified as held for sale and sold during 2024, see Note 14 and 22.

Income tax expense

Income tax expense consists of the following:

	January - September						July - September
Income tax composition	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Current income tax expense		(473,452	)		(102,351	)		(373,975	)		(43,861	)
Tax benefit arising from tax credit used to reduce current tax expense		-			9,151			-			257
Prior period current income tax adjustments		(2,004	)		(10,602	)		61			(63	)
Other current benefit tax (expenses)		146,890			4,015			141,875			(1,409	)
Current tax expense, net		(328,566	)		(99,787	)		(232,039	)		(45,076	)
Deferred tax expense relating to origination and reversal of temporary differences (*)		182,768			84,400			102,047			51,141
Tax benefit arising from tax credits used to reduce deferred tax expense (*)		2,307			151,579			(6,195	)		46,008
Total deferred tax benefit (expense), net		185,075			235,979			95,852			97,149
Total income tax benefit (expense)		(143,491	)		136,192			(136,187	)		52,073

(*) Includes deferred tax expenses related to temporary differences (ThU.S.$2,922 as of September 30, 2024), and tax losses (ThU.S.$3,008 as of September 30, 2024) generated by Brazilian companies classified as held for sale, see Note 22.

The following table presents the current income tax expense detailed by foreign and domestic (Chile) companies as of September 30, 2024 and December 31, 2023:

	January – September						July - September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Foreign current income tax expense		(99,927	)		(65,904	)		(21,794	)		(26,620	)
Domestic current income tax expense		(228,639	)		(33,883	)		(210,245	)		(18,456	)
Total current income tax expense		(328,566	)		(99,787	)		(232,039	)		(45,076	)
Foreign deferred tax benefit (expense) (*)		103,391			16,979			18,157			6,137
Domestic deferred tax benefit (expense)		81,684			219,000			77,695			91,012
Total deferred tax benefit (expense)		185,075			235,979			95,852			97,149
Total income tax benefit (expense)		(143,491	)		136,192			(136,187	)		52,073

(*) Includes deferred tax expenses (ThU.S.$5,930 as of September 30, 2024) generated by Brazilian companies previously classified as held for sale and sold during 2024, see Note 14 and 22.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

The reconciliation of income tax expense is as follows:

	January – September						July - September
	2024			2023			2024			2023
Reconciliation of income tax from statutory rate to effective tax rate	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Statutory domestic (Chile) income tax rate		27	%		27	%		27	%		27	%
Tax expense at statutory tax rate		(139,045	)		110,865			(99,040	)		60,770
Tax effect of foreign tax rates		8,504			675			2,109			1,071
Tax effect of income exempt from taxation		199,647			80,317			171,231			7,061
Tax effect of not deductible expenses		(248,615	)		(43,614	)		(215,235	)		(7,398	)
Tax effect of a new evaluation of deferred tax assets (*)		57,170			(20,447	)		15,083			(19,938	)
Tax effect of tax provided in excess in prior periods		(2,004	)		(10,602	)		61			(63	)
Other tax rate effects (**)		(19,148	)		18,998			(10,396	)		10,570
Total adjustments to tax expense at applicable tax rate		(4,446	)		25,327			(37,147	)		(8,697	)
Tax benefit (expense) at effective tax rate		(143,491	)		136,192			(136,187	)		52,073

(*) Includes tax effect due to inflation adjustment on Argentine tax bases.

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

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

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

In view of the fact that Arauco has subsidiaries in the United Kingdom and the Netherlands, jurisdictions where the relevant legislation has already been enacted, estimates have been made to determine the potential impacts on the taxes to be paid by Arauco starting in 2024. As of the date of these financial statements, it is estimated that this legislation will have no impact, and therefore, no expenses or income have been recorded for current taxes related to the Pillar 2 income tax. However, due to the complexity of this new legislation, these estimates may be subject to change during the current year.

Current tax assets and liabilities

The current tax assets and liabilities balances are as follow:

Current tax assets	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Monthly Provisional Payments		41,025			18,065
Income tax receivable		26,548			91,177
Provision tax income		(178,515	)		(35,886	)
Other tax receivables		175,699			45,675
Total		64,757			119,031

Current tax liabilities	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Provision tax income (First category)		48,103			45,703
Monthly Provisional Payments and other tax receivables		(22,199	)		(33,012	)
Other tax payables		2,659			627
Total		28,563			13,318

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Property, plant and equipment, net
Construction work in progress		633,125			611,424
Land		940,331			882,222
Buildings		3,676,096			3,774,756
Plant and equipment		3,966,485			4,074,957
Information technology equipment		39,191			42,659
Fixtures and fittings		11,650			12,795
Motor vehicles		53,487			50,678
Other property, plant and equipment		159,648			157,625
Total net		9,480,013			9,607,116
Property, plant and equipment, gross
Construction work in progress		633,125			611,424
Land		940,331			882,222
Buildings		6,474,660			6,425,405
Plant and equipment		8,998,229			8,947,315
Information technology equipment		138,134			136,672
Fixtures and fittings		55,199			54,560
Motor vehicles		116,426			108,528
Other property, plant and equipment		176,477			175,501
Total gross		17,532,581			17,341,627
Accumulated depreciation and impairment
Buildings		(2,798,564	)		(2,650,649	)
Plant and equipment		(5,031,744	)		(4,872,358	)
Information technology equipment		(98,943	)		(94,013	)
Fixtures and fittings		(43,549	)		(41,765	)
Motor vehicles		(62,939	)		(57,850	)
Other property, plant and equipment		(16,829	)		(17,876	)
Total		(8,052,568	)		(7,734,511	)

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

As of September 30, 2024, there are no significant assets pledged as collateral to be disclosed in these interim consolidated financial statements.

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

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Amount committed for the acquisition of property, plant and equipment		316,442		239,815

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Reconciliation of property, plant and equipment

The following tables set forth the reconciliation of the carrying amount of property, plant and equipment as of September 30, 2024 and December 31, 2023:

Reconciliation of property, plant and equipment	Construction work in progress			Land			Buildings			Plant and equipment			IT equipment			Fixtures and fittings			Motor vehicles			Other property, plant and equipment			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2024		611,424			882,222			3,774,756			4,074,957			42,659			12,795			50,678			157,625			9,607,116
Changes
Additions		342,596			34,145			6,195			27,200			379			476			440			5,104			416,535
Business combination		-			29,973			274			14			-			12			-			4			30,277
Disposals		-			(271	)		(2,271	)		(7,928	)		(43	)		(101	)		(884	)		-			(11,498	)
Withdrawals		(1,698	)		(139	)		(852	)		(7,502	)		(12	)		(16	)		(189	)		-			(10,408	)
Depreciation		-			-			(164,790	)		(292,705	)		(6,210	)		(2,324	)		(6,848	)		(963	)		(473,840	)
Impairment loss recognized in profit or loss		-			-			(993	)		3,287			(30	)		(715	)		-			-			1,549
Increase (decrease) through net exchange differences		(13,369	)		(11,843	)		(7,850	)		(23,841	)		(215	)		(32	)		(1,465	)		(2,123	)		(60,738	)
Reclassification of assets held for sale		-			(3,601	)		-			-			-			-			-			-			(3,601	)
Transfers from construction in progress closed and reclassifications		(305,828	)		9,845			71,627			206,158			2,663			1,555			13,979			1			-
Reclassification from lease to property, plant and equipment		-			-			-			292			-			-			-			-			292
Decrease through transfers of leasing assets		-			-			-			(13,447	)		-			-			(2,224	)		-			(15,671	)
Total changes		21,701			58,109			(98,660	)		(108,472	)		(3,468	)		(1,145	)		2,809			2,023			(127,103	)
Closing balance 09-30-2024		633,125			940,331			3,676,096			3,966,485			39,191			11,650			53,487			159,648			9,480,013

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

The depreciation expense for the period ended September 30, 2024 and 2023 was as follows:

	January - September				July - September
	2024		2023		2024		2023
Depreciation for the year	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Cost of sales		426,591		388,933		145,850		145,332
Administrative expenses		22,202		21,741		7,345		7,811
Other expenses		7,582		44,790		2,054		5,542
Total (*)		456,375		455,464		155,249		158,685

(*) Period 2024, includes depreciation expenses generated by property, plant and equipment previously classified as assets held for sale and sold during 2024, see note 14 and 22.

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

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

See Note 12 for details of capitalized borrowing costs.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 8. Leases

Arauco acting as lessee

In the application of IFRS 16, Arauco chose not to apply the requirements to recognize a liability and an asset for right of use for leases which term ends within 12 months and for leases in which the underlying asset is of low value ThU.S.$ 5.

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

Right of use assets

	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Property, plant and equipment by right of use, net
Land		508,700			460,386
Buildings		17,279			16,412
Plant and equipment		64,237			60,993
Information technology equipment		360			186
Motor vehicles		38,898			50,869
Other property, plant and equipment		9,709			11,515
Total net		639,183			600,361
Property, plant and equipment by right of use, gross
Land		564,992			493,297
Buildings		36,542			35,183
Plant and equipment		93,308			85,252
Information technology equipment		700			412
Motor vehicles		223,666			223,708
Other property, plant and equipment		12,048			12,666
Total gross		931,256			850,518
Accumulated depreciation and impairment by right of use
Land		(56,292	)		(32,911	)
Buildings		(19,263	)		(18,771	)
Plant and equipment		(29,071	)		(24,259	)
Information technology equipment		(340	)		(226	)
Motor vehicles		(184,768	)		(172,839	)
Other property, plant and equipment		(2,339	)		(1,151	)
Total		(292,073	)		(250,157	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Reconciliation of property, plant and equipment by right of use

The following tables set forth the reconciliation of the carrying amount of property, plant and equipment by right of use as of September 30, 2024 and 2023:

Reconciliation of property, plant and equipment by right of use	Land			Buildings			Plant and equipment			IT equipment			Motor vehicles			Other property, plant and equipment			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance 01-01-2023		460,386			16,412			60,993			186			50,869			11,515			600,361
Changes
Additions		113,366			8,325			8,399			359			1,329			-			131,778
Disposals		-			(2,474	)		-			-			(331	)		-			(2,805	)
Withdrawals		-			(517	)		-			-			(178	)		-			(695	)
Depreciation (*)		(20,002	)		(4,274	)		(4,855	)		(158	)		(12,874	)		(1,514	)		(43,677	)
Increase (decrease) through net exchange differences		(45,291	)		(136	)		(300	)		(27	)		83			-			(45,671	)
Reclassification from lease to Property, plant and equipment		-			-			-			-			-			(292	)		(292	)
Increase (decrease) through others		241			(57	)		-			-			-			-			184
Total changes		48,314			867			3,244			174			(11,971	)		(1,806	)		38,822
Closing balance 09-30-2024		508,700			17,279			64,237			360			38,898			9,709			639,183

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

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

The depreciation expense for the period ending September 30, 2024 and 2023 recognized in property, plant and equipment by right of use is as follows:

	January - September				July - September
	2024		2023		2024		2023
Depreciation for the period	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Cost of sales (*)		16,111		21,514		4,359		9,214
Distribution costs		869		831		200		280
Administrative expenses (*)		5,337		5,531		1,877		1,884
Total		22,317		27,876		6,436		11,378

(*) Period 2024 includes depreciation expenses generated by property, plant and equipment previously classified as assets held for sale and sold during 2024, see note 14 and 22.

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

	January - September						July – September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Expenses from payments of variable leases		(192,695	)		(163,094	)		(99,372	)		(52,556	)
Expenses from low value leases		(3,892	)		(2,756	)		(2,732	)		(1,202	)
Expenses from short-term leases		(29,339	)		(30,245	)		(4,322	)		(2,419	)
Income from sublease of right of use assets		469			335			157			112

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Arauco acting as lessor

Reconciliation of financial lease minimum payments:

	09-30-2024
	Gross		Interest		Present value
Periods	ThU.S.$		ThU.S.$		ThU.S.$
Less than one year		18,415		-		18,415
Between one and six years		64,212		4,616		59,596
More than six years		-		-		-
Total		82,627		4,616		78,011

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

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

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

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

NOTE 9. REVENUE

	January - September				July – September
Classes of revenue	2024		2023		2024		2023
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Revenue from sales of goods		4,782,223		4,341,552		1,661,472		1,552,192
Revenue from rendering of services		102,292		101,738		33,772		42,709
Total		4,884,515		4,443,290		1,695,244		1,594,901

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 10. EMPLOYEE BENEFITS

Classes of benefits and expenses by employee

	January – September				July - September
	2024		2023		2024		2023
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Employee expenses		529,945		561,671		177,487		177,429
Wages and salaries		511,788		539,403		172,812		168,004
Severance indemnities		18,157		22,268		4,675		9,425

	09-30-2024			12-31-2023
Discount rate		3.23	%		3.23	%
Inflation		3.20	%		3.20	%
Annual rate of wage growth		5.22	%		5.22	%
Mortality rate		RV-2020			RV-2014

Sensitivities to assumptions	ThU.S.$
Discount rate
Increase in 100 bps		(6,192	)
Decrease in 100 bps		7,100
Wage growth rates
Increase in 100 bps		6,235
Decrease in 100 bps		(5,516	)

The following tables set forth the balances and the reconciliation of the present value of severance indemnities obligations as of September 30, 2024 and December 31, 2023:

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Current		7,156		7,863
Non-current		83,337		86,462
Total		90,493		94,325

Reconciliation of the present value of severance indemnities obligations	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance		94,325			95,260
Current service cost		4,872			9,833
Interest cost		3,636			4,737
(Gains) losses from changes in actuarial assumptions		25			131
Actuarial gains and losses arising from experience		186			2,595
Benefits paid		(7,172	)		(16,197	)
Increase (decrease) for foreign currency exchange rates changes		(5,379	)		(2,034	)
Closing balance		90,493			94,325

The average staffing as of September 30, 2024 was 18,636 people.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

September 30, 2024	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Assets
Current assets
Cash and cash equivalents		624,247		5,081		81,159		14,852		50,443		5,563		61,502		-		842,847
Other current financial assets		4,901		-		-		-		-		-		12		-		4,913
Other current non-financial assets		105,762		551		28,015		28,968		9,242		9,340		98,334		-		280,212
Trade and other current receivables		632,216		29,704		86,248		41,865		35,904		1,063		108,751		20,245		955,996
Accounts receivable due from related companies		-		-		-		1,167		-		-		8,642		-		9,809
Current Inventories		1,424,703		-		88,032		-		41,307		-		1,880		-		1,555,922
Current biological assets		351,426		-		26,393		-		-		-		-		-		377,819
Current tax assets		60,959		-		2,246		-		537		478		537		-		64,757
Non-current assets or disposal groups classified as held for sale		3,204,214		35,336		312,093		86,852		137,433		16,444		279,658		20,245		4,092,275
Non-current assets or disposal groups classified as held for sale		3,707		-		15		-		48		-		-		-		3,770
Total current assets		3,207,921		35,336		312,108		86,852		137,481		16,444		279,658		20,245		4,096,045
Non-current assets
Other non-current financial assets		49,937		-		-		-		-		-		-		-		49,937
Other non-current non-financial assets		59,114		-		25,924		-		621		8		2,004		-		87,671
Trade and other non-current receivables		9,774		-		-		495		-		-		1,604		59,665		71,538
Investments accounted for using equity method		127,005		211,166		45,440		-		-		-		46,100		-		429,711
Intangible assets other than goodwill		54,319		-		1,590		-		84		-		1,302		-		57,295
Goodwill		41,415		-		12,017		-		-		-		-		-		53,432
Property, plant and equipment		8,912,457		-		368,683		-		197,093		-		1,780		-		9,480,013
Right of use assets		183,306		-		453,320		-		2,248		-		309		-		639,183
Non-current biological assets		2,396,381		-		200,993		-		-		-		-		-		2,597,374
Deferred tax assets		21,668		-		40,337		-		753		-		2,925		-		65,683
Total non-current assets		11,855,376		211,166		1,148,304		495		200,799		8		56,024		59,665		13,531,837
Total assets		15,063,297		246,502		1,460,412		87,347		338,280		16,452		335,682		79,910		17,627,882

September 30, 2024	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Liabilities
Current liabilities
Other current financial liabilities		175,317		74,073		41,635		-		-		-		-		67,957		358,982
Current lease liabilities		11,275		151		11,826		-		507		543		11,621		4,290		40,213
Trade and other current payables		186,731		21,613		85,244		47,516		22,163		12,978		302,858		41,317		720,420
Accounts payable to related companies		704		-		-		-		-		-		7,187		-		7,891
Other short-term provisions		500		-		-		-		-		-		313		1,354		2,167
Current tax liabilities		1,457		3,867		1,731		18,747		2,761		-		-		-		28,563
Current provisions for employee benefits		-		-		-		-		-		-		7,156		-		7,156
Other current non-financial liabilities		203,747		82		24,125		4,417		4,661		10		6,150		26		243,218
Current liabilities other than liabilities included in disposal groups classified as held for sale		579,731		99,786		164,561		70,680		30,092		13,531		335,285		114,944		1,408,610
Liabilities included in disposal groups classified as held for sale		-		-		-		-		-		-		-		-		-
Total liabilities, current		579,731		99,786		164,561		70,680		30,092		13,531		335,285		114,944		1,408,610
Non-current liabilities
Other non-current financial liabilities		3,435,081		311,076		187,955		-		-		-		-		1,529,120		5,463,232
Non-current lease liabilities		125,418		335		409,276		-		1,053		63		13,400		16,140		565,685
Other non-current payables		23,685		-		8,907		-		-		-		8,874		-		41,466
Non-current accounts payable to related companies		26,251		-		-		-		-		-		-		-		26,251
Other long-term provisions		-		-		7,530		26,282		-		-		46		-		33,858
Deferred tax liabilities		1,437,893		-		22,099		-		5,352		-		-		-		1,465,344
Non-current provisions for employee benefits		-		-		-		-		1,126		-		82,211		-		83,337
Other non-current non-financial liabilities		-		-		45,757		64		-		-		1,089		-		46,910
Total non-current liabilities		5,048,328		311,411		681,524		26,346		7,531		63		105,620		1,545,260		7,726,083
Total liabilities		5,628,059		411,197		846,085		97,026		37,623		13,594		440,905		1,660,204		9,134,693

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

December 31, 2023	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Assets
Current assets
Cash and cash equivalents		310,108		6,532		30,402		58,592		26,439		3,149		134,786		-		570,008
Other current financial assets		20,303		-		-		25,301		-		-		-		-		45,604
Other current non-financial assets		61,669		569		31,594		2,945		2,975		8,671		131,831		-		240,254
Trade and other current receivables		711,883		30,330		67,137		19,916		34,234		640		115,907		17,855		997,902
Accounts receivable due from related companies		-		-		-		174		-		-		2,442		-		2,616
Current Inventories		1,234,477		-		117,927		-		46,389		-		1,053		-		1,399,846
Current biological assets		298,703		-		72,254		-		-		-		-		-		370,957
Current tax assets		103,781		-		3,716		-		9,007		1,388		1,139		-		119,031
Non-current assets or disposal groups classified as held for sale		2,740,924		37,431		323,030		106,928		119,044		13,848		387,158		17,855		3,746,218
Non-current assets or disposal groups classified as held for sale		107		-		429,197		-		56		-		-		-		429,360
Total current assets		2,741,031		37,431		752,227		106,928		119,100		13,848		387,158		17,855		4,175,578
Non-current assets
Other non-current financial assets		33,512		-		-		-		-		-		-		-		33,512
Other non-current non-financial assets		64,784		-		28,415		4,965		620		8		382		-		99,174
Trade and other non-current receivables		20,613		-		21,614		-		-		-		1,889		64,385		108,501
Investments accounted for using equity method		137,746		215,322		34,557		-		-		-		35,986		-		423,611
Intangible assets other than goodwill		62,868		-		3,352		-		211		-		-		-		66,431
Goodwill		41,458		-		14,433		-		-		-		-		-		55,891
Property, plant and equipment		9,037,099		-		406,713		-		162,067		-		1,237		-		9,607,116
Right of use assets		203,637		-		395,560		-		1,164		-		-		-		600,361
Non-current biological assets		2,496,739		-		154,883		-		-		-		-		-		2,651,622
Deferred tax assets		81,309		-		6,947		-		311		-		-		-		88,567
Total non-current assets		12,179,765		215,322		1,066,474		4,965		164,373		8		39,494		64,385		13,734,786
Total assets		14,920,796		252,753		1,818,701		111,893		283,473		13,856		426,652		82,240		17,910,364

December 31, 2023	U.S dollar		Euros		Brazilian real		Argentine pesos		Mexican pesos		Other currencies		Chilean pesos		U.F.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Liabilities
Current liabilities
Other current financial liabilities		935,282		72,415		19,143		496		-		-		-		55,189		1,082,525
Current lease liabilities		11,215		95		17,487		-		1,879		66		11,107		5,393		47,242
Trade and other current payables		150,867		18,933		88,484		46,403		18,336		14,609		381,289		41,534		760,455
Accounts payable to related companies		-		-		-		-		-		-		6,958		-		6,958
Other short-term provisions		2,542		-		-		-		-		-		18		1,345		3,905
Current tax liabilities		13,313		-		5		-		-		-		-		-		13,318
Current provisions for employee benefits		-		-		-		-		-		-		7,863		-		7,863
Other current non-financial liabilities		9,095		61		25,086		3,014		7,827		1		5,064		-		50,148
Current liabilities other than liabilities included in disposal groups classified as held for sale		1,122,314		91,504		150,205		49,913		28,042		14,676		412,299		103,461		1,972,414
Liabilities included in disposal groups classified as held for sale		-		-		99,328		-		-		-		-		-		99,328
Total liabilities, current		1,122,314		91,504		249,533		49,913		28,042		14,676		412,299		103,461		2,071,742
Non-current liabilities
Other non-current financial liabilities		3,453,766		342,013		186,687		-		-		-		-		1,539,102		5,521,568
Non-current lease liabilities		114,984		55		346,524		-		1,661		130		22,382		26,404		512,140
Other non-current payables		22,814		-		9,714		-		-		-		18,049		-		50,577
Non-current accounts payable to related companies		22,981		-		-		-		-		-		-		-		22,981
Other long-term provisions		-		-		3,299		25,352		-		-		-		-		28,651
Deferred tax liabilities		1,506,687		-		29,744		-		7,193		-		-		-		1,543,624
Non-current provisions for employee benefits		-		-		-		-		1,209		-		85,253		-		86,462
Other non-current non-financial liabilities		-		-		63,574		6		-		-		10		-		63,590
Total non-current liabilities		5,121,232		342,068		639,542		25,358		10,063		130		125,694		1,565,506		7,829,593
Total liabilities		6,243,546		433,572		889,075		75,271		38,105		14,806		537,993		1,668,967		9,901,335

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

	09-30-2024						12-31-2023
	Up to 90 days		From 91 days to 1 year		Total		Up to 90 days		From 91 days to 1 year		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Total current liabilities		1,230,738		177,872		1,408,610		1,030,309		1,041,433		2,071,742
Other current financial liabilities		250,403		108,579		358,982		124,220		958,305		1,082,525
U.S. dollar		164,693		10,624		175,317		116,665		818,617		935,282
Euros		37,653		36,420		74,073		-		72,415		72,415
Brazilian real		6,902		34,733		41,635		7,059		12,084		19,143
Argentine pesos		-		-		-		496		-		496
U.F.		41,155		26,802		67,957		-		55,189		55,189
Bank borrowings		169,850		73,725		243,575		86,243		388,779		475,022
U.S. dollar		125,295		2,572		127,867		79,184		304,280		383,464
Euros		37,653		36,420		74,073		-		72,415		72,415
Brazilian real		6,902		34,733		41,635		7,059		12,084		19,143
Other borrowings		80,553		34,854		115,407		37,977		569,526		607,503
U.S. dollar		39,398		8,052		47,450		37,481		514,337		551,818
Argentine pesos		-		-		-		496		-		496
U.F.		41,155		26,802		67,957		-		55,189		55,189
Current lease liabilities		11,911		28,302		40,213		16,911		30,331		47,242
U.S. dollar		3,085		8,190		11,275		3,184		8,031		11,215
Euros		48		103		151		24		71		95
Brazilian real		4,881		6,945		11,826		8,848		8,639		17,487
Mexican pesos		-		507		507		458		1,421		1,879
Other currencies		60		483		543		16		50		66
Chilean pesos		2,937		8,684		11,621		2,648		8,459		11,107
U.F.		900		3,390		4,290		1,733		3,660		5,393
Trade and other current payables		702,245		18,175		720,420		744,010		16,445		760,455
U.S. dollar		186,713		18		186,731		150,702		165		150,867
Euros		21,613		-		21,613		18,933		-		18,933
Brazilian real		73,146		12,098		85,244		72,204		16,280		88,484
Argentine pesos		47,516		-		47,516		46,403		-		46,403
Mexican pesos		16,104		6,059		22,163		18,336		-		18,336
Other currencies		12,978		-		12,978		14,609		-		14,609
Chilean pesos		302,858		-		302,858		381,289		-		381,289
U.F.		41,317		-		41,317		41,534		-		41,534
Accounts payable to related companies		7,891		-		7,891		6,958		-		6,958
U.S. dollar		704		-		704		-		-		-
Chilean pesos		7,187		-		7,187		6,958		-		6,958
Other short-term provisions		2,167		-		2,167		3,905		-		3,905
U.S. dollar		500		-		500		2,542		-		2,542
Chilean pesos		313		-		313		18		-		18
U.F.		1,354		-		1,354		1,345		-		1,345
Current tax liabilities		5,747		22,816		28,563		1,567		11,751		13,318
U.S. dollar		1,298		159		1,457		1,562		11,751		13,313
Euros		-		3,867		3,867		-		-		-
Brazilian real		1,688		43		1,731		5		-		5
Argentine pesos		-		18,747		18,747		-		-		-
Mexican pesos		2,761		-		2,761		-		-		-
Current provisions for employee benefits		7,156		-		7,156		7,863		-		7,863
Chilean pesos		7,156		-		7,156		7,863		-		7,863
Other current non-financial liabilities		243,218		-		243,218		25,547		24,601		50,148
U.S. dollar		203,747		-		203,747		6,868		2,227		9,095
Euros		82		-		82		61		-		61
Brazilian real		24,125		-		24,125		2,935		22,151		25,086
Argentine pesos		4,417		-		4,417		3,014		-		3,014
Mexican pesos		4,661		-		4,661		7,827		-		7,827
Other currencies		10		-		10		1		-		1
Chilean pesos		6,150		-		6,150		4,841		223		5,064
U.F.		26		-		26		-		-		-
Liabilities included in disposal groups classified as held for sale		-		-		-		99,328		-		99,328
Brazilian real		-		-		-		99,328		-		99,328

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

	09-30-2024								12-31-2023
	From 13 months to 3 years		From 3 years to 5 years		More than 5 years		Total		From 13 months to 3 years		From 3 years to 5 years		More than 5 years		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Total non-current liabilities		2,357,045		1,555,442		3,813,596		7,726,083		2,434,678		1,034,845		4,360,070		7,829,593
Other non-current financial liabilities		1,145,156		1,396,519		2,921,557		5,463,232		1,181,498		877,395		3,462,675		5,521,568
U.S. dollar		572,655		990,686		1,871,740		3,435,081		594,470		494,363		2,364,933		3,453,766
Euros		136,214		139,252		35,610		311,076		134,999		138,032		68,982		342,013
Brazilian real		137,175		50,780		-		187,955		155,703		30,984		-		186,687
U.F.		299,112		215,801		1,014,207		1,529,120		296,326		214,016		1,028,760		1,539,102
Bank borrowings		754,865		190,032		35,610		980,507		786,031		169,016		68,982		1,024,029
U.S. dollar		481,476		-		-		481,476		495,329		-		-		495,329
Euros		136,214		139,252		35,610		311,076		134,999		138,032		68,982		342,013
Brazilian real		137,175		50,780		-		187,955		155,703		30,984		-		186,687
Other borrowings		390,291		1,206,487		2,885,947		4,482,725		395,467		708,379		3,393,693		4,497,539
U.S. dollar		91,179		990,686		1,871,740		2,953,605		99,141		494,363		2,364,933		2,958,437
U.F.		299,112		215,801		1,014,207		1,529,120		296,326		214,016		1,028,760		1,539,102
Non-current lease liabilities		77,743		67,512		420,430		565,685		70,451		58,933		382,756		512,140
U.S. dollar		26,175		21,648		77,595		125,418		21,617		16,715		76,652		114,984
Euros		187		148		-		335		48		7		-		55
Brazilian real		34,096		35,351		339,829		409,276		20,403		26,754		299,367		346,524
Mexican pesos		870		183		-		1,053		1,386		275		-		1,661
Other currencies		63		-		-		63		96		34		-		130
Chilean pesos		8,847		4,553		-		13,400		15,933		4,661		1,788		22,382
U.F.		7,505		5,629		3,006		16,140		10,968		10,487		4,949		26,404
Non-current payable		41,466		-		-		41,466		27,763		-		22,814		50,577
U.S. dollar		23,685		-		-		23,685		-		-		22,814		22,814
Brazilian real		8,907		-		-		8,907		9,714		-		-		9,714
Chilean pesos		8,874		-		-		8,874		18,049		-		-		18,049
Non- current accounts payable to related companies		5,015		7,581		13,655		26,251		-		7,581		15,400		22,981
U.S. dollar		5,015		7,581		13,655		26,251		-		7,581		15,400		22,981
Other long-term provisions		29,411		4,447		-		33,858		28,543		108		-		28,651
Brazilian real		3,083		4,447		-		7,530		3,191		108		-		3,299
Argentine pesos		26,282		-		-		26,282		25,352		-		-		25,352
Chilean pesos		46		-		-		46		-		-		-		-
Deferred tax liabilities		931,459		75,941		457,944		1,465,344		985,219		82,142		476,263		1,543,624
U.S. dollar		924,455		75,799		437,639		1,437,893		976,270		81,004		449,413		1,506,687
Brazilian real		1,652		142		20,305		22,099		1,756		1,138		26,850		29,744
Mexican pesos		5,352		-		-		5,352		7,193		-		-		7,193
Non-current provisions for employee benefits		83,337		-		-		83,337		86,462		-		-		86,462
Mexican pesos		1,126		-		-		1,126		1,209		-		-		1,209
Chilean pesos		82,211		-		-		82,211		85,253		-		-		85,253
Other non-current non-financial liabilities		43,458		3,442		10		46,910		54,742		8,686		162		63,590
Brazilian real		42,305		3,442		10		45,757		54,726		8,686		162		63,574
Argentine pesos		64		-		-		64		6		-		-		6
Chilean pesos		1,089		-		-		1,089		10		-		-		10

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

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

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

	January - September						July - September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Arauco Canada Limited.		(272	)		1,561			8,821			(5,169	)
Arauco Celulose do Brasil S.A.		4,006			-			4,006			-
Arauco Do Brasil S.A.		(9,770	)		22,475			12,495			(5,805	)
Arauco Florestal Arapoti S.A. (*)		101,277			2,978			109,506			(3,127	)
Arauco Forest Brasil S.A. (*)		287,217			16,057			262,007			(17,087	)
Arauco Industria de Mexico, S.A de C.V		(46,531	)		18,018			(19,041	)		(5,738	)
Arauco MS Participações S.A.		(84,642	)		-			5,222			-
Sonae Arauco S.A.		1,585			(2,732	)		8,252			(6,949	)
Others		(2,027	)		2,119			(120	)		1,454
Total reserve of exchange differences on translation		250,843			60,476			391,148			(42,421	)

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

Effect of foreign exchange rates changes

	January - September						July - September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Exchange differences recognized in profit or loss, except for those arising on financial instruments measured at fair value through profit or loss		(9,202	)		(22,035	)		(3,213	)		(13,797	)
Reserve of exchange differences on translation (with non-controlling interests)		385,648			60,477			528,439			(42,420	)

NOTE 12. Borrowing COSTS

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

	January - September						July - September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Interest cost capitalized, property, plant and equipment
Capitalization rate of interest cost capitalized, property, plant and equipment		5.00	%		4.77	%		5.00	%		4.76	%
Amount of the interest cost capitalized, property, plant and equipment		1,273			190			565			51

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 13. RELATED PARTIES

Related party disclosures

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

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

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

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

Name of group’s main shareholders

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

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

Empresas Copec S.A.

Key management personnel compensation

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

Pricing strategy terms and conditions corresponding to transactions with related parties

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

				% Ownership interest						% Ownership interest
			Functional	09-30-2024						12-31-2023
ID N°	Company Name	Country	Currency	Direct		Indirect		Total		Direct		Indirect		Total
77.630.621-5	Agrícola Ranquillón SpA.	Chile	U.S. Dollar		-		98.64273		98.64273		-		98.64114		98.64114
77.630.618-5	Agrícola San Carlos SpA.	Chile	U.S. Dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.623-1	Agrícola Santa Emilia SpA.	Chile	U.S. Dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.625-8	Agrícola Santa Isabel SpA.	Chile	U.S. Dollar		-		99.94839		99.94839		-		99.94839		99.94839
77.630.626-6	Agrícola Siberia SpA.	Chile	U.S. Dollar		-		98.64273		98.64273		-		98.64114		98.64114
77.630.629-0	Agrícola Trupán SpA. (1)	Chile	U.S. Dollar		-		-		-		-		98.64114		98.64114
-	Arauco Argentina S.A.	Argentina	U.S. Dollar		9.97070		90.00940		99.98010		9.97070		90.00940		99.98010
-	Arauco Australia Pty Ltd.	Australia	U.S. Dollar		-		99.99898		99.99898		-		99.99898		99.99898
96.547.510-9	Arauco Bioenergía SpA.	Chile	U.S. Dollar		98.00000		1.99897		99.99897		98.00000		1.99897		99.99897
-	Arauco Canada Ltd.	Canada	Canadian Dollar		-		99.99911		99.99911		-		99.99911		99.99911
-	Arauco Celulose do Brasil S.A.	Brazil	Brazilian Real		-		99.99904		99.99904		-		99.99907		99.99907
-	Arauco Colombia S.A.	Colombia	U.S. Dollar		1.47783		98.52042		99.99825		1.47783		98.52042		99.99825
-	Arauco do Brasil S.A.	Brazil	Brazilian Real		1.06807		98.93105		99.99912		1.06807		98.93105		99.99912
-	Arauco Europe Cooperatief U.A.	Holland	U.S. Dollar		0.34686		99.65212		99.99898		0.44979		99.54919		99.99898
-	Arauco Florestal Arapoti S.A. (2)	Brazil	Brazilian Real		-		-		-		-		99.99899		99.99899
-	Arauco Forest Brasil S.A. (2)	Brazil	Brazilian Real		-		-		-		8.51901		91.48006		99.99907
-	Arauco Participações Florestais Ltda.	Brazil	Brazilian Real		-		99.99907		99.99907		-		99.99907		99.99907
-	Arauco Industria de México, S.A.de C.V.	Mexico	Mexican pesos		-		99.99910		99.99910		-		99.99910		99.99910
-	Arauco Industria de Paineis S.A.	Brazil	Brazilian Real		-		99.99912		99.99912		-		99.99912		99.99912
-	Arauco Middle East DMCC.	Dubai	U.S. Dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco North America, Inc.	United States	U.S. Dollar		0.00010		99.99901		99.99911		0.00010		99.99901		99.99911
-	Arauco MS Participações S.A.	Brazil	Brazilian Real		8.51902		91.48005		99.99907		0.20000		99.79898		99.99898
-	Arauco Perú S.A.	Peru	U.S. Dollar		0.00126		99.99772		99.99898		0.00126		99.99772		99.99898
-	Arauco Pulp Limited.	United Kingdom	U.S. Dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco Ventures Limited.	United Kingdom	U.S. Dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco Wood (China) Company Limited.	China	U.S. Dollar		-		99.99898		99.99898		-		99.99898		99.99898
-	Arauco Wood Limited.	United Kingdom	U.S. Dollar		12.63126		87.36785		99.99911		12.63126		87.36785		99.99911
-	Araucomex S.A. de C.V.	Mexico	U.S. Dollar		0.00050		99.99861		99.99911		0.00050		99.99861		99.99911
-	Araucomex Servicios, S.A. de C.V.	Mexico	Mexican pesos		0.33333		99.66578		99.99911		0.33333		99.66578		99.99911
96.657.900-5	Consorcio Protección Fitosanitaria Forestal S.A.	Chile	Chilean Pesos		-		56.83115		56.83115		-		56.83107		56.83107
-	Empreendimentos Florestais Santa Cruz Ltda. (2)	Brazil	Brazilian Real		-		-		-		-		99.99907		99.99907
76.869.577-0	E2E SpA.	Chile	Chilean Pesos		1.00000		98.99861		99.99861		1.00000		98.99861		99.99861
85.805.200-9	Forestal Arauco S.A.	Chile	U.S. Dollar		99.94839		-		99.94839		99.94839		-		99.94839
93.838.000-7	Forestal Cholguán S.A.	Chile	U.S. Dollar		-		98.64273		98.64273		-		98.64114		98.64114
96.563.550-5	Inversiones Arauco Internacional Ltda.	Chile	U.S. Dollar		98.01862		1.98036		99.99898		98.01862		1.98036		99.99898
79.990.550-7	Investigaciones Forestales Bioforest SpA.	Chile	U.S. Dollar		1.00000		98.94891		99.94891		1.00000		98.94891		99.94891
-	Leasing Forestal S.A.	Argentina	Argentine pesos		-		99.98010		99.98010		-		99.98010		99.98010
76.860.724-9	Lemu Earth SpA.	Chile	Chilean Pesos		-		96.25956		96.25956		-		87.65386		87.65386
-	Lemu Global Limited.	United Kingdom	Pound Sterling		-		96.25956		96.25956		-		94.37831		94.37831
-	Lemu Inc.	United States	U.S. Dollar		-		96.25956		96.25956		-		94.37831		94.37831
-	Maderas Arauco Costa Rica S.A.	Costa Rica	U.S. Dollar		-		99.99898		99.99898		-		99.99898		99.99898
96.510.970-6	Maderas Arauco S.A.	Chile	U.S. Dollar		-		99.99860		99.99860		-		99.99860		99.99860
-	Mahal Empreendimentos e Participações S.A.	Brazil	Brazilian Real		-		99.99907		99.99907		-		99.99907		99.99907
-	Novo Oeste Gestão de Ativos Florestais S.A.	Brazil	Brazilian Real		-		99.99907		99.99907		-		99.99907		99.99907
76.375.371-9	Servicios Aéreos Forestales Ltda.	Chile	U.S. Dollar		14.47369		85.52544		99.99913		14.47369		85.52544		99.99913
96.637.330-K	Servicios Logísticos Arauco SpA.	Chile	U.S. Dollar		45.00000		54.99923		99.99923		45.00000		54.99923		99.99923
-	Tecverde Engenharia S.A.	Brazil	Brazilian Real		-		89.39060		89.39060		-		89.39060		89.39060
-	Woodaffix, LLC.	United States	U.S. Dollar		-		99.99911		99.99911		-		99.99911		99.99911

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

(2) Companies sold in July 2024.

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

Long-term debt with related entities - mutual agreement with Arauco Argentina S.A.

On June 5, 2017, Arauco signed a mutual agreement with its subsidiary Arauco Argentina S.A., pursuant to which this subsidiary received an amount of U.S.$ 250,000,000, which accrues an interest at the SOFR interest rate for 180 days plus a fixed spread of 5.20% and an adjustment of 0.42826% resulting from the replacement of LIBOR rates in dollars with SOFR rates (this according to the “Selections and Recommendations” of the “Alternative Reference Rates Committee” or ARRC), with payments every six months on June 1 and December 1 of each year.

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

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

Key management personnel compensation and redundancy benefits

	January - September				July - September
	2024		2023		2024		2023
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Salaries and bonuses		47,613		58,144		16,093		19,112
Per diem compensation to members of the Board of Directors		2,044		2,014		728		657
Termination benefits		2,326		3,149		670		1,543
Total		51,983		63,307		17,491		21,312

Related party receivables, current

		Nature of				09-30-2024		12-31-2023
Name of related party	Tax ID No.	relationship	Country	Currency	Maturity	ThU.S.$		ThU.S.$
Forestal Mininco S.A.	91.440.000-7	Common stockholder	Chile	Chilean pesos	30 days		20		10
Eka Chile S.A.	99.500.140-3	Joint venture	Chile	Chilean pesos	30 days		2,173		2,113
Colbún S.A.	96.505.760-9	Common stockholder	Chile	Chilean pesos	-		-		217
Fundación Educacional Arauco	71.625.000-8	Parent company is founder and contributor	Chile	Chilean pesos	30 days		849		-
Alxar Internacional SpA.	76.879.169-4	Common controlling parent	Chile	Chilean pesos	-		-		42
Sociedad Efecto Producciones Ltda.	77.131.710-3	Common director of parent company	Chile	Chilean pesos	-		-		9
Parque Eólico Ovejera Sur SpA.	76.839.949-2	Joint venture	Chile	Chilean pesos	-		-		10
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate		Chilean pesos	12-16-2024		1,500		-
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate		Chilean pesos	03-30-2025		4,000		-
Compañía Puerto de Coronel S.A.	79.895.330-3	Subsidiary of an associate	Chile	Chilean pesos	30 days		31		14
EMOAC SpA.	76.208.888-6	Common controlling parent	Chile	Chilean pesos	30 days		69		27
Softys Argentina S.A.	-	Common stockholder	Argentina	Argentine pesos	30 days		1,167		174
TOTAL							9,809		2,616

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Related party payables, current

		Nature of				09-30-2024		12-31-2023
Name of related party	Tax ID No.	relationship	Country	Currency	Maturity	ThU.S.$		ThU.S.$
Copec S.A.	99.520.000-7	Common controlling parent	Chile	Chilean pesos	30 days		6,966		6,017
Abastible S.A.	91.806.000-6	Common controlling parent	Chile	Chilean pesos	30 days		140		319
Fundación Educacional Arauco	71.625.000-8	Parent company is founder and contributor	Chile	Chilean pesos	-		-		444
Bioenergías Forestales SpA.	76.188.197-3	Common stockholder	Chile	Chilean pesos	30 days		1		5
Red to Green S.A.	86.370.800-1	Common stockholder	Chile	Chilean pesos	-		-		1
Empresa Nacional de Telecomunicaciones S.A.	92.580.000-7	Common stockholder	Chile	Chilean pesos	30 days		2		7
Servicios Corporativos Sercor S.A.	96.925.430-1	Associate	Chile	Chilean pesos	-		-		14
Vía Limpia SpA.	79.874.200-0	Common controlling parent	Chile	Chilean pesos	-		-		4
Copec Aviation S.A.	96.942.120-8	Joint venture of controlling parent	Chile	Chilean pesos	-		-		4
Agrícola San Gerardo SpA	77.017.167-9	Joint venture	Chile	Chilean pesos	-		-		143
Agrícola Fresno SpA	77.470.229-6	Joint venture	Chile	U.S. dollar	30 days		704		-
Parque Eólico Ovejera Sur SpA.	76.839.949-2	Joint venture	Chile	Chilean pesos	30 days		78		-
TOTAL							7,891		6,958

Related party payables, non-current

Nature of

09-30-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

Maturity

ThU.S.$

Agrícola Fresno SpA.

77.470.229-6

Joint venture

Chile

U.S. dollar

12-31-2054

5,015

Agrícola Fresno SpA.

77.470.229-6

Joint venture

Chile

U.S. dollar

12-31-2027

7,581

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Annual

13,655

15,400

TOTAL

26,251

22,981

Related party transactions

Purchases

Nature of

Transaction

09-30-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

descriptions

ThU.S.$

Abastible S.A.

91.806.000-6

Common controlling parent

Chile

Chilean pesos

Fuel

2,881

4,033

Copec S.A.

99.520.000-7

Common controlling parent

Chile

Chilean pesos

Fuel and other

91,684

168,859

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

Chilean pesos

Transport, stowage and port services

6,983

17,008

EKA Chile S.A.

99.500.140-3

Joint venture

Chile

Chilean pesos

Sodium chlorate

34,578

50,815

Portaluppi, Guzman y Bezanilla Abogados Ltda.

78.096.080-9

Common director

Chile

Chilean pesos

Legal services

472

1,065

Entel PCS Telecomunicaciones S.A.

96.806.980-2

Common stockholder

Chile

Chilean pesos

Telephone services

514

922

Colbún S.A.

96.505.760-9

Common stockholder

Chile

Chilean pesos

Electrical Power

343

1,187

Bioenergías Forestales SpA.

76.188.197-3

Common stockholder

Chile

Chilean pesos

Electrical Power

202

Woodtech S.A.

76.724.000-7

Associate of controlling parent

Chile

Chilean pesos

Wood volumen measurement services

512

1,283

Servicios Corporativos Sercor S.A.

96.925.430-1

Associate

Chile

Chilean pesos

Other purchases

162

215

Vía Limpia SPA

79.874.200-0

Common controlling parent

Chile

Chilean pesos

Waste management service and other purchases

244

280

Sales

Nature of

Transaction

09-30-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

descriptions

ThU.S.$

Colbún S.A.

96.505.760-9

Common stockholder

Chile

Chilean pesos

Electrical power

398

430

EKA Chile S.A.

99.500.140-3

Joint venture

Chile

Chilean pesos

Electrical power

17,569

23,162

Fundación Educacional Arauco

71.625.000-8

Parent company is founder and contributor

Chile

Chilean pesos

IT and administrative services

139

226

Entel PCS Telecomunicaciones S.A.

96.806.980-2

Common stockholder

Chile

Chilean pesos

Leasings

469

405

Cartulinas CMPC S.A.

96.731.890-6

Common stockholder

Chile

Chilean pesos

Pulp

222

Softys Chile SpA.

96.529.310-8

Common stockholder

Chile

Chilean pesos

Pulp

782

Forestal Mininco SpA.

91.440.000-7

Common stockholder

Chile

Chilean pesos

Pest control services and other sales

154

441

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

Chilean pesos

Other sales

294

EMOAC SpA

76.208.888-6

Subsidiary of controlling parent

Chile

Chilean pesos

Electrical Power

701

2,125

Softys Argentina S.A.

Common stockholder

Argentina

Argentine pesos

Pulp

7,066

15,534

Other transactions

Nature of

Transaction

09-30-2024

12-31-2023

Name of related party

Tax ID No.

relationship

Country

Currency

descriptions

ThU.S.$

Falcão MS SPE S.A.

Associate

Brazil

Reales

Capital contribution

11,395

23,553

Agrícola Fresno SpA

77.470.229-6

Joint venture

Chile

U.S. dollar

Capital contribution

12,066

1,509

Parque Eólico Ovejera Sur SpA.

76.839.949-2

Joint venture

Chile

Chilean pesos

Capital contribution

296

222

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Issuance of new shares

15,400

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Capital contribution

9,230

TreeCo, Inc.

Joint venture

United States

U.S. dollar

Borrowing capitalization

1,770

E2E SpA.

76.879.577-0

Joint venture (currently is a subsidiary)

Chile

Chilean pesos

Borrowing capitalization

5,254

Compañía Puerto de Coronel S.A.

79.895.330-3

Subsidiary of an associate

Chile

Chilean pesos

Borrowing

5,538

Tecverde Engenharia S.A.

Subsidiary of a joint venture

Brazil

U.S. dollar

Borrowing

2,668

E2E SpA.

76.879.577-0

Joint venture (currently is a subsidiary)

Chile

Chilean pesos

Borrowing

537

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 14. INVESTMENTS IN SUBSIDIARIES

The main operations carried out as of September 30, 2024 and as of December 31, 2023 are reported below:

On July 16, 2024, Arauco transferred all the shares and interests held by Arauco in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., which own assets mainly in the state of Paraná, Brazil. The sale price, which amounted to ThU.S.$1,168,161, was paid on that date and is subject to the customary price adjustments following the transaction’s closing. The amount received by Arauco after taxes was ThU.S.$967,522, which generated a profit of ThU.S.$170,041 after taxes.

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

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

NOTE 15. INVESTMENTS IN ASSOCIATES

As of September 30, 2024 and as of December 31, 2023, these are the main movements of investments in associates to report:

In 2023, Arauco contributed capital to Falcão MS SPE S.A. for ThR$ 116,742 (equivalent to ThU.S.$ 23,553). In the 2024 period, the company contributed ThR$63,488 (equivalent to ThU.S.$11,395).

The following tables set forth information about investments in associates.

Name	Inversiones Puerto Coronel S.A.
Country	Chile
Functional currency	U.S. dollar
Corporate purpose	Investments in movables and real estate, acquisition of companies, securities and investment instruments, investment management and development and/or participation in all kind of businesses and companies related to industrial, shipping, forestry and commercial activities.
Ownership interest (%)	50.0000%
	09-30-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 54,628	ThU.S.$ 64,788

Name	Servicios Corporativos Sercor S.A.
Country	Chile
Functional currency	Chilean pesos
Corporate purpose	Consulting services related to business management to Boards of Directors and Senior Management of all Arauco’s entities.
Ownership interest (%)	20.0000%
	09-30-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 399	ThU.S.$ 451

Name	Genómica Forestal S.A.
Country	Chile
Functional currency	Chilean pesos
Corporate purpose	Developing forestry genomics, through the use of biotechnological, molecular and bioinformatics tools with the purpose of strengthening genetic programs so as to improve the competitive position of the Chilean forestry industry for priority tree species.
Ownership interest (%)	25.0000%
	09-30-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 9	ThU.S.$ 9

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Name	Consorcio Tecnológico Bioenercel S.A.
Country	Chile
Functional currency	Chilean pesos
Corporate purpose	Developing of technologies which will promote the development of a biofuels industry in Chile, obtained from lingo-cellulosic materials. The future execution of this sustainable project is financed by the Innova Chile Committee.
Ownership interest (%)	20.0000%
	09-30-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ -	ThU.S.$ 1

Name	Falcão MS SPE S.A.
Country	Brazil
Functional currency	Brazilian real
Corporate purpose	Management of land for leases to related parties.
Ownership interest (%)	49.0000%
	09-30-2024	12-31-2023
Carrying amount accounted for using equity method	ThU.S.$ 45,440	ThU.S.$ 34,558

	09-30-2024	12-31-2023
Total investments in associates accounted for using equity method	ThU.S.$ 100,476	ThU.S.$ 99,806

Summarized financial information of associates

									Consorcio
	Inversiones Puerto		Serv.Corporativos		Florestal Vale		Falcão		Tecnológico		Genómica
09-30-2024	Coronel S.A.		Sercor S.A.		do Corisco S.A.		MS SPE S.A.		Bioenercel S.A.		Forestal S.A.		Total
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current assets of associates		1		6,279		-		46,480		-		10		52,770
Non-current assets of associates		111,075		2,377		-		128,730		-		62		242,244
Total of associates		111,076		8,656		-		175,210		-		72		295,014

													Consorcio
	Inversiones Puerto			Serv,Corporativos			Florestal Vale do			Falcão			Tecnológico		Genómica
09-30-2024	Coronel S.A.			Sercor S.A.			Corisco S.A.			MS SPE S.A.			Bioenercel S.A.		Forestal S.A.		Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$
Current liabilities of associates		55			4,978			-			41,869			-		-		46,902
Non-current liabilities of associates		-			1,685			-			39,705			-		35		41,425
Equity		111,021			1,993			-			93,636			-		37		206,687
Total of associates		111,076			8,656			-			175,210			-		72		295,014
09-30-2024
Income		-			3,634			5,693			7,982			-		-		17,309
Other income / expenses		(9,467	)		(3,784	)		(2,785	)		(673	)		-		-		(16,709	)
Net profit or loss (continuing operations) of associates		(9,467	)		(150	)		2,908			7,309			-		-		600
Other comprehensive income		2,135			-			-			-			-		-		2,135
Comprehensive income		(7,332	)		(150	)		2,908			7,309			-		-		2,735
Dividends received		-			-			871			-			-		-		871

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

											Consorcio
	Inversiones Puerto		Serv.Corporativos			Florestal Vale do			Falcão		Tecnológico		Genómica
12-31-2023	Coronel S.A.		Sercor S.A.			Corisco S.A.			MS SPE S.A.		Bioenercel S.A.		Forestal S.A.			Total
	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$		ThU.S.$		ThU.S.$			ThU.S.$
Current liabilities of associates		54		6,021			1,743			4,238		-		-			12,056
Non-current liabilities of associates		-		1,362			20,990			106,468		3		35			128,858
Equity		131,342		2,254			59,392			70,526		1		37			263,552
Total of associates		131,396		9,637			82,125			181,232		4		72			404,466
09-30-2023
Income		-		3,481			7,994			-		-		-			11,475
Other income / expenses		2,592		(3,074	)		(3,538	)		226		-		(1	)		(3,795	)
Net profit or loss (continuing operations) of associates		2,592		407			4,456			226		-		(1	)		7,680
Other comprehensive income		-		-			-			-		-		-			-
Comprehensive income		2,592		407			4,456			226		-		(1	)		7,680
Dividends received		-		-			105			-		-		-			105

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Reconciliation of investment in associates and joint ventures

	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance as of January 1		423,611			365,671
Changes
Investment in associates, additions (1)		11,395			23,553
Investment in joint ventures, additions (2)		12,362			55,885
Share of profit (loss) in investment in associates		(6,577	)		3,990
Share of profit (loss) in investment in joint ventures		(10,761	)		3,719
Dividends received, Investments in associates		(2,500	)		(3,687	)
Increase (decrease) in foreign exchange currency on translation of associates and joint ventures		(2,309	)		9,467
Reclassification from (to) assets held for sale (3)		-			(29,102	)
Other increase (decrease) in investment in associates and joint ventures		4,490			(5,885	)
Total changes		6,100			57,940
Closing balance		429,711			423,611

Year 2024

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

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

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

Year 2023

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

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

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

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

-Arauco Venture Limited., acquired 51.1278% of TreeCo, Inc. shares, for a total of ThU.S.$ 48,900, during the year 2023, which were carried out based on the committed agreements. As of September 30, 2024 the contribution paid was ThU.S.$ 11,000, through the capitalization of loan receivable for ThU.S.$ 1,770 and cash contributions for ThU.S.$ 9.230.

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

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Carrying amount of investments in associates accounted for using equity method		100,476		99,806
Carrying amount of investments in joint ventures accounted for using equity method		329,235		323,805
Total investment accounted for using equity method		429,711		423,611

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 16. INTERESTS IN JOINT ARRANGEMENTS

Investments and contributions made

The main operations carried out as of September 30, 2024 and December 31, 2023 are reported below:

During the period ending September 30, 2024, through the subsidiary Forestal Arauco S.A., contributions of non-monetary assets have been made to Agrícola Fresno SpA for a total amount of ThUS$ 10,226.

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

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

Arauco initially recorded this acquisition based on the information available to date, making a preliminary determination of the allocation of fair values. The amounts were considered provisional amounts and may be adjusted during the measurement period of this acquisition to reflect new information obtained about facts and circumstances existing at the date of the acquisition which, if known, would have affected the measurement of the amounts recognized at that date.

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

As of September 30, 2024 and 2023, Arauco has not made contributions to Uruguayan companies Celulosa y Energía Punta Pereira S.A. and Zona Franca Punta Pereira S.A.

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

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

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

Celulosa y Energía Punta Pereira S.A.	09-30-2024				12-31-2023
(Uruguay)	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		590,086		71,437		408,066		44,798
Non-current		1,920,661		127,982		1,948,800		133,661
Equity		-		2,311,328		-		2,178,407
Total joint arrangement		2,510,747		2,510,747		2,356,866		2,356,866
Investment		1,155,664				1,089,204

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		753,809			744,634
Expenses		(498,667	)		(502,994	)
Joint arrangement net income (loss)		255,142			241,640

Forestal Cono Sur S.A. (consolidated)	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		55,505		6,171		51,173		5,911
Non-current		151,961		5,514		150,619		3,931
Equity		-		195,781		-		191,950
Total joint arrangement		207,466		207,466		201,792		201,792
Investment		97,891				95,975

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		6,867			8,011
Expenses		(3,032	)		(214	)
Joint arrangement net income (loss)		3,835			7,797

Eufores S.A. (consolidated)	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		197,095		278,581		150,509		223,974
Non-current		1,124,754		126,175		965,695		116,226
Equity		-		917,093		-		776,004
Total joint arrangement		1,321,849		1,321,849		1,116,204		1,116,204
Investment		458,547				388,002

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		234,186			211,285
Expenses		(211,702	)		(173,627	)
Joint arrangement net income (loss)		22,484			37,658

Zona Franca Punta Pereira S.A.	09-30-2024				12-31-2023
(Uruguay)	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		13,799		94,490		6,842		90,235
Non-current		420,534		-		425,634		-
Equity		-		339,843		-		342,241
Total joint arrangement		434,333		434,333		432,476		432,476
Investment		169,922				171,121

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		16,310			15,946
Expenses		(18,708	)		(18,568	)
Joint arrangement net income (loss)		(2,398	)		(2,622	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

Eka Chile S.A.	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		17,932		5,747		16,898		4,397
Non-current		40,110		5,274		39,854		5,142
Equity		-		47,021		-		47,213
Total joint arrangement		58,042		58,042		56,752		56,752
Investment		23,511				23,607

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		39,409			38,937
Expenses		(34,601	)		(36,600	)
Joint arrangement net income (loss)		4,808			2,337
Other comprehensive income		-			-
Comprehensive income		4,808			2,337
Dividends		2,500			500

Sonae Arauco S.A.	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		298,159		290,315		274,085		202,434
Non-current		740,268		325,781		705,465		346,471
Equity		-		422,331		-		430,645
Total joint arrangement		1,038,427		1,038,427		979,550		979,550
Net assets		192,098				194,762
Net asset adjustment (goodwill)		19,068				20,561
Investment		211,166				215,323

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		706,374			795,587
Expenses		(732,190	)		(768,166	)
Joint arrangement net income (loss)		(25,816	)		27,421
Other comprehensive income		-			-
Comprehensive income		(25,816	)		27,421
Dividends		-			-

Agrícola El Paque SpA.	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		480		205		245		77
Non-current		4,488		668		4,240		225
Equity		-		4,095		-		4,183
Total joint arrangement		4,968		4,968		4,485		4,485
Investment		2,048				2,091

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		106			-
Expenses		(99	)		42
Joint arrangement net income (loss)		7			42
Other comprehensive income		-			-
Comprehensive income		7			42
Dividends		-			-

Parque Eólico Ovejera del Sur SpA.	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		280		143		301		95
Non-current		3,383		-		3,103		-
Equity		-		3,520		-		3,309
Total joint arrangement		3,663		3,663		3,404		3,404
Investment		1,760				1,655

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		3			-
Expenses		(102	)		(42	)
Joint arrangement net income (loss)		(99	)		(42	)
Other comprehensive income		-			-
Comprehensive income		(99	)		(42	)
Dividends		-			-

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

E2E SpA.	09-30-2024				02-28-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		-		-		7,693		20,282
Non-current		-		-		21,411		2,520
Equity		-		-		-		6,302
Total joint arrangement		-		-		29,104		29,104
Investment		-				3,151

	09-30-2024		02-28-2023
	ThU.S.$		ThU.S.$
Income		-		224
Expenses		-		(1,244	)
Joint arrangement net income (loss)		-		(1,020	)
Other comprehensive income		-		-
Comprehensive income		-		(1,020	)
Dividends		-		-

Agrícola San Gerardo SpA.	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		1,021		626		765		2,225
Non-current		5,164		2,005		4,981		-
Equity		-		3,554		-		3,521
Total joint arrangement		6,185		6,185		5,746		5,746
Investment		1,777				1,761

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		386			-
Expenses		(272	)		20
Joint arrangement net income (loss)		114			20
Other comprehensive income		-			-
Comprehensive income		114			20
Dividends		-			-

Agrícola Fresno SpA	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		5,651		16,830		2,939		7,558
Non-current		128,100		1,226		96,303		1,159
Equity		-		115,695		-		90,525
Total joint arrangement		133,751		133,751		99,242		99,242
Investment		57,848				45,263

	09-30-2024		09-30-2023
	ThU.S.$		ThU.S.$
Income		155		-
Expenses		175		(173	)
Joint arrangement net income (loss)		330		(173	)
Other comprehensive income		-		-
Comprehensive income		330		(173	)
Dividends		-		-

TreeCo Inc.	09-30-2024				12-31-2023
	Assets		Liabilities		Assets		Liabilities
	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Current		3,499		542		2,823		514
Non-current		14,100		-		15,593		-
Equity		-		17,057		-		17,902
Total joint arrangement		17,599		17,599		18,416		18,416
Investment on equity		8,721				9,153		-
Goodwill		39,747				39,747
		48,468				48,900

	09-30-2024			09-30-2023
	ThU.S.$			ThU.S.$
Income		-			-
Expenses		(845	)		-
Joint arrangement net income (loss)		(845	)		-
Other comprehensive income		-			-
Comprehensive income		(845	)		-
Dividends		-			-

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 17. IMPAIRMENT OF ASSETS

In 2022, as a result of loss of dryer, an impairment provision was made for ThU.S.$ 10,500 in Valdivia mill in Chile, which was recognized into impairment provisions of individual assets for which reversals were made in 2023, leaving a balance of ThU.S.$ 3,639 as of September 30, 2024.

At the end of 2022, considering the current projections of future margins, exchange differences and the sustained increasing risk in the Argentine Republic, and applying the usual procedures for determining impairment in accordance with IFRS, in the subsidiary Arauco Argentina, an impairment was recorded in the cash generating unit for the manufacture of celulose pulp, which to date is ThU.S.$ 127,247. (ThU.S.$ 127,260 as of December 31, 2023).

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

On September 12, 2023, the decision to suspend the manufacturing pulp process at the Licancel mill (Chile) was informed. In 2023, an impairment provision was recognized for a total of ThU.S.$ 61,039, which includes Property, plant and equipment and Inventory of spare parts. As of September 30, 2024, the impairment provision for Licancel mill remains.

In the second quarter of 2023, an impairment provision of ThU.S.$ 6,037 was recognized corresponding to the closure of the Aserraderos Horcones II in Chile, which remains to date.

In 2024, an impairment provision of ThU.S.$ 6,120 was recognized corresponding to the indefinite suspension of operations of the Aserradero El Colorado in Chile.

As of September 30, 2024, impairment provisions associated with sales and recoveries from property, plant and equipment of United States subsidiary were reversed for a total of ThU.S.$ 9,640 (ThU.S.$ 7,113 as of December 31, 2023).

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

Changes in CGUs impairment provision	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance		401,671			324,350
Impairment loss recognized in profit or loss		9,571			80,146
Reversal of impairment loss recognized		(12,998	)		(7,899	)
Increase (decrease) in foreign exchange		(6,332	)		5,074
Closing balance		391,912			401,671

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

Changes in impairment provision from impaired assets	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening balance		31,764			33,155
Impairment loss recognized in profit or loss		2,319			8,600
Reverse of impairment recognized loss in profit or loss		(1,832	)		(10,197	)
Increase (decrease) in foreign exchange		(356	)		206
Closing balance		31,895			31,764

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Goodwill

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

At the date of these interim consolidated financial statements, the balance of goodwill is ThU.S.$ 53,432 (ThU.S.$ 55,891 on December 31, 2023), as shown below:

	09-30-2024		12-31-2023
Goodwill	ThU.S.$		ThU.S.$
Arauco Canada Ltd. (Flakeboard Company Ltd)		40,683		40,726
Arauco do Brasil S.A. (Pien mill)		12,017		14,433
Arauco North America, Inc. (Prime-Line, Inc.)		732		732
Closing balance		53,432		55,891

	09-30-2024			12-31-2023
Goodwill movement	ThU.S.$			ThU.S.$
Opening balance at January 1		55,891			54,800
Increase (decrease) in foreign exchange		(2,459	)		1,091
Closing balance		53,432			55,891

Of the total of goodwill, ThU.S.$ 40,683 (ThU.S.$ 40,726 as of December 31, 2023) were generated by the acquisition of “Flakeboard” (currently Arauco Canada Ltd.), a company that, directly and/or through its subsidiaries, possesses and operates 7 panel plants, for which Arauco acquired and paid, on September 24, 2012, the price of ThU.S.$ 242,502 for the 100% interest ownership. The remaining balance of ThU.S.$ 732 corresponds to the acquisition of Prime-Line Inc., on September 1, 2019, for which Arauco North America Inc, a subsidiary of Arauco Canada Ltd. paid ThU.S.$ 18,880 for all the shares of said company.

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

Due to the investment in panel plant in Pien, Brazil, there is a goodwill of ThU.S.$ 12,017 (ThU.S.$ 14,433 as of December 31, 2023).

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

As of September 30, 2024 and December 31, 2023, the carrying value of the goodwill of the plants did not exceed their recoverable value.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 18. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES

The contingent liabilities for outstanding litigations are as follows:

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

The Constitución’s Truck Owners Trade Association (in Spanish, Asociación Gremial de Dueños de Camiones de Constitución or “ASODUCAM”) has filed a claim – seeking the specific performance of a contract and damages – against Forestal Arauco S.A., Celulosa Arauco y Constitución S.A. and Maderas Arauco S.A. The respondents are being sued joint and severally.

The complaint is based on assumptions on alleged breaches of some agreements for the allocation, distribution and supply of cargo volumes for the years 2001 and 2005, initially executed by associates of ASODUCAM with Forestal Arauco S.A., and then, allegedly, with Servicios Logísticos Arauco SpA., in favor of the other two defendants, Celulosa Arauco and Constitución S.A. and Maderas Arauco S.A.

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

On February 7, 2024, the court ordered the suspension of proceedings, pending the resolution of the settlement plea, and duly noted that the claim against Forestal Arauco S.A. had been properly answered. By way of a resolution dated February 29, 2024, a ruling on the above plea was postponed until the final decision of the case. A motion for reconsideration, with a secondary appeal, was filed against this ruling, which was rejected by a resolution dated March 12, 2024, while the secondary appeal was granted. On March 20, 2024, the case was forwarded to the Court of Appeals of Santiago under docket No. 471-2024, which was declared admissible on April 2, 2024 and added to the appeal docket No. C-2258-2023.

Upon conclusion of the discussion period, a settlement hearing was held on April 18, 2024. However, the settlement was ultimately declared unsuccessful. The court must now issue a resolution to commence the period for the production of evidence.

Forestal Arauco S.A.

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

Considering that the Company's position is supported by solid legal arguments, there is a reasonable margin of obtaining a favorable result for the Company and that is why, as of September 30, 2024, Arauco has not established any provision for this contingency.

Arauco Argentina S.A.

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

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

In March 2005, Note No. 145/05 of the Subsecretary of Agriculture, Livestock and Afforestation suspended the benefit that exempted Arauco Argentina S.A. from paying export duties under Law No. 25,080. This measure was under administratively and judicially discussion by the Company. On November 8, 2006, the V Chamber of the National Appeals Court for Adversarial Administrative and Federal Matters issued a resolution by which it admitted a precautionary measure requested by the Company, ordering Arauco Argentina S.A. to continue to enjoy an exemption from paying the exportation duties, in the same manner and scope it had prior to the suspension ordered by Note No. 145/05, if the clearance of merchandise is performed pursuant to the guarantee regime established in article 453, subsection a) of the Customs Code, for the exempted tax obligation. The judicial measure became effective beginning in March of 2007 by collateralization through the granting of bond (caution) policies for each shipment permits exempted from payment of export duty. The company maintains an assignment of funds equivalent to $ 23,821 for guaranteed export duties between 2007-2015, which appears under long-term provisions. In the same file of judicial challenge of Note 145/05, the Company included a request for a total amount of ThU.S.$ 6,555, plus interest accrued from the service of the claim, corresponding to export duties between March 2005 and March 2007, as a result of the application of Note 145/05 issued by the Undersecretary of Agriculture, Livestock and Afforestation. The Company’s claim was being heard under case file No. 21830/2006 before the Federal Contentious Administrative Court No. 4. On October 28, 2019, a judgment of first instance was issued in said case, rejecting the claim and imposing the litigation costs on Arauco. Against that judgment, the Company filed an appeal and expressed the corresponding arguments in December 2019. On June 15, 2022, the Chamber of Appeals confirmed the judgement of first instance. On July 1, 2022, Arauco Argentina filed the Federal Extraordinary Appeal before the Supreme Court of Justice. The Chamber admitted the appeal lodged by Arauco regarding the federal matter of the litigation; however, the grounds pertaining to arbitrariness were dismissed. Arauco filed a direct complaint before the Supreme Court, seeking for the higher court to broaden its examination of the case and also address such argument. In its ruling issued on June 13, 2024, the Supreme Court declared both motions inadmissible, thus ratifying the legality of Note 145/05. The Company’s legal advisors are of the opinion that since the Enforcement Authority did not establish that Arauco was not entitled to the exemption (neither in Note 145/05, nor in any subsequent administrative act), and to the extent that the committed forestry projects are declared completed, the sums paid as precautionary export duties should be returned to the Company, not based on the illegality of Note 145/05, but rather on the effective enjoyment of the received benefits.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

On the other hand, Arauco Argentina S.A. currently has a guarantee at an amount of $ 435,952,315 Argentine pesos (ThU.S.$ 449 as of September 30, 2024) in favor of the Secretary of Agriculture, Livestock and Fishing.

Moreover, the Company has submitted annual forestry plans covering the period from 2007 to 2021 for its plantations located in the Provinces of Misiones and Buenos Aires.

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

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

Arauco do Brasil S.A.

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

I – The administrative level fine(deductibility of interest and isolated fine of 50%) whose estimated amount of R$34,505,176 (equivalent to ThU.S.$ 6,334 as of September 30, 2024). Pursuant to these requirements on March 27, 2023, Arauco do Brasil adhered to the government program of reduction of fiscal litigation which permits a reduction of the 65% of the entire amount of the debt through the payment of the 35% of the debt in two ways: (a) payment in cash of the 30%, totaling R$3,674,892 (ThU.S.$ 675 as of September 30, 2024) and (b) payment of 70% of fiscal losses, totaling R$8,574,747 (ThU.S.$ 1,574 as of September 30, 2024).

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

II – Part of the case that remained in a judicial venue (contractual expenses deducted in the purchase of Tafisa Brasil; interest and legal expenses on debts in the amnesty program; Imposto de Renda Pessoa Jurídica, or “IRPJ”, and lower Contribuição Social sobre o Lucro Líquido, or “CSLL” whose updated estimated amount is R$ 42,167,507 (ThU.S.$ 7,740 as of September 30, 2024). Arauco do Brasil filed the Tax Debt Annulment Action.

On March 9, 2023, the trial court issued a judgment that was partially favorable to Arauco do Brasil, upholding the aforementioned claims, and thus setting aside the portion of the debt corresponding to R$ 26,554,677 (ThU.S.$ 4,874 as of September 30, 2024). However, the judgment rejected the claim related to interest and legal expenses on debts under the amnesty program, which estimated amount is R$ 15,612,831 (ThU.S.$ 2,866 as of September 30, 2024).

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

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

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

2) In 2013, a service provider (Emontcontrau) instituted a civil lawsuit against us seeking compensation for damages allegedly caused by Arauco’s unilateral termination of its contract in connection with the implementation of the MDF 2 line of the Jaguariaiva mill. On November 01, 2021, the Civil Court of Curitiba issued its ruling, ordering Arauco to pay to the service provider an amount of ThR$ 84,000 (ThU.S.$ 15,419 as of September 30, 2024) in consideration of the alleged damages borne by the service provider during the course of the services contracts and as a result of its early termination by Arauco.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

In April 2023, a favorable ruling was handed down in our Appeal and we succeeded in annulling the judgment so that the case could return to its origin. This annulment ruling will also affect the expert evidence, which will have to be produced again. As a result, the provision of R$ 42,945,528 (ThU.S.$ 7,883 as of September 30, 2024) was fully reversed.

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

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

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

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

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

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

On December 12, 2022, the Tax Administration Service issued tax credit assessment resolution number 900-04-04-00-00-00-2022-978 corresponding to the 2014 tax year. Under such assessment, objections against the following items were filed: (i) the deduction of interest in the historical amount of $ 85,172,274 Mexican pesos (ThU.S.$ 4,338 as of September 30, 2024), from loans granted by Masisa S.A. (Chile); (ii) the tax loss in the total amount of $ 275,986,671 Mexican pesos (ThU.S.$ 14,057 as of September 30, 2024); (iii) the deduction of payments made to Masisa S.A. for logistics services in the total amount of $ 3,058,221 Mexican pesos (ThU.S.$ 156 as of September 30, 2024); (iv) the alleged generation of non-distributed dividends related to the payments indicated in items (i) and (iii) above; (v) the rejection of contributions to the Single Contribution Account in amounts expressed in Mexican pesos of $ 342,372,000 (ThU.S.$ 17,438 as of September 30, 2024), $ 66,250,020 (ThU.S.$ 3,374 as of September 30, 2024), $ 46,389,980 (ThU.S.$ 2,363 as of September 30, 2024) and $ 11,457,000 Mexican pesos (ThU.S.$ 583 as of September 30, 2024), respectively; and (vi) an alleged incorrect application of the double taxation avoidance treaty between Mexico and Chile. The total amount of omitted tax, updates, surcharges, and fines assessed to the company amounts to $ 437,900,830 Mexican pesos (ThU.S.$ 22,303 as of September 30, 2024).

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

Provisions recorded as of September 30, 2024 and December 31, 2023 are as follows:

	09-30-2024		12-31-2023
Classes of Provisions	ThU.S.$		ThU.S.$
Short-term provisions		2,167		3,905
Provisions for litigations		600		440
Other short-term provisions		1,567		3,465
Long-term provisions, non-Current		33,858		28,651
Provisions for litigations		29,476		28,651
Other long-term provisions		4,382		-
Total provisions		36,025		32,556

	09-30-2024
Movements in provisions	Litigations (*)			Other Provisions (**)			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		29,091			3,465			32,556
Changes in provisions
Additional provisions		2,745			4,508			7,253
Used provisions		(1,070	)		(2,119	)		(3,189	)
Increase (decrease) in foreign exchange		(695	)		95			(600	)
Other increases (decreases)		5			-			5
Total changes		985			2,484			3,469
Closing balance		30,076			5,949			36,025

(*) The increase in litigations is mainly made up of ThU.S.$ 2,662 by subsidiaries in Argentina and Brazil for civil and labor lawsuits.

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

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 19. INTANGIBLE ASSETS

	09-30-2024			12-31-2023
Classes of intangible assets, net	ThU.S.$			ThU.S.$
Intangible assets, net		57,295			66,431
Intangible assets under development (IT programs)		778			2,793
Computer software		18,749			21,234
Water rights		4,338			4,999
Customer relationship		15,918			19,457
Other identifiable intangible assets		17,512			17,948
Classes of intangible assets, gross		229,871			232,484
Intangible assets under development (IT programs)		778			2,793
Computer software		127,489			124,794
Water rights		4,338			4,999
Customer relationship		75,256			75,337
Other identifiable intangible assets		22,010			24,561
Classes of accumulated amortization and impairment
Total accumulated amortization and impairment		(172,576	)		(166,053	)
Accumulated amortization and impairment, intangible assets		(172,576	)		(166,053	)
Computer software		(108,740	)		(103,560	)
Customer relationship		(59,338	)		(55,880	)
Other identifiable intangible assets		(4,498	)		(6,613	)

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

	09-30-2024
Reconciliation of intangible assets	Intangible assets under development			Computer software			Water rights			Customer relationship			Others			Total
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		2,793			21,234			4,999			19,457			17,948			66,431
Changes
Additions		795			1,871			-			-			282			2,948
Disposals		(7	)		(63	)		(661	)		-			-			(731	)
Amortization		-			(6,111	)		-			(3,701	)		(355	)		(10,167	)
Increase (decrease) in foreign exchange		-			(414	)		-			162			(363	)		(615	)
Increase (decrease) though transfers		(670	)		-			-			-			-			(670	)
Other increases (decreases)		(2,133	)		2,232			-			-			-			99
Changes total		(2,015	)		(2,485	)		(661	)		(3,539	)		(436	)		(9,136	)
Closing balance		778			18,749			4,338			15,918			17,512			57,295

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

NOTE 20. BIOLOGICAL ASSETS

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

As of September 30, 2024, Arauco had a total surface of 1.67 million hectares of which 902 thousand hectares are used for forestry planting, 476 thousand hectares are native forest, 134 thousand hectares are used for other purposes and 163 thousand hectares not yet planted. Lands corresponding to native forest, lands used for other purposes and lands not yet planted are presented in property, plant & equipment, Forest plantations are presented in Biological Assets.

For the nine-months period ended September 30, 2024, the production volume of logs totaled 15.1 million m3 (14.5 million m3 as of September 30, 2023).

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

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

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

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

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

- Future plantations are not considered.

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

- Expected cash flows are determined in terms of harvest and expected sale of forestry products, associated with the demand from the Company’s own industrial centers and sales to third parties at market prices. Sales margin of the different products that are harvested in the forest is also considered in the valuation. The changes in the value of the plantations pursuant to the criteria defined above are accounted for in the results for the period, as established in IAS 41. These changes are presented in the interim consolidated statements of profit or loss under the line item other income per function, which as of September 30, 2024 amounted to ThU.S.$ 30,293 (ThU.S.$ 167,174 as of September 30, 2023). The appraisal of biological assets resulted in a greater cost of the lumber sold in comparison to the real incurred cost, which is presented included in the cost of sales which as of September 30, 2024 amounted to ThU.S.$ 224,737 (ThU.S.$ 257,787 as of September 30, 2023).

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

- The discount rates used are 7.0% in Chile, 8.3% Brazil, 22.6% in Argentina and 9% in Uruguay.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

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

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

- The average crop age by species and country is:

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

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

		ThU.S.$
Discount rate	0.5		(103,741	)
	-0.5		110,654
Margins (%)	10		410,873
	-10		(410,873	)

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

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

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

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

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

Detail of biological assets pledged as security

As of September 30, 2024, there were no forestry plantations pledged as security.

Detail of biological assets with restricted ownership

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

No significant government grants have been received.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements September 30, 2024 Amounts in thousands of U.S. dollars, except as indicated

Current and non-current biological assets

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

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Current		377,819		370,957
Non-current		2,597,374		2,651,622
Total		2,975,193		3,022,579

Reconciliation of carrying amount of biological assets

	09-30-2024
Movement	Current			Non-current			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		370,957			2,651,622			3,022,579
Changes in real incurred cost		(7,416	)		164,636			157,220
Additions through acquisition		-			273,632			273,632
Increases (decreases) due to business combination		-			21,880			21,880
Sales		(19	)		(4,133	)		(4,152	)
Harvest		(104,531	)		-			(104,531	)
Increases (decreases) in foreign exchange		(6,621	)		(19,237	)		(25,858	)
Loss of forest due to fires		-			(3,231	)		(3,231	)
Transfers from non-current to current		103,755			(103,755	)		-
Other increases (decreases)		-			(520	)		(520	)
Changes in fair value		14,278			(218,884	)		(204,606	)
Gain (losses) arising from changes in fair value minus sale costs		-			(11,412	)		(11,412	)
Sales		-			(5,174	)		(5,174	)
Harvest		(187,982	)		-			(187,982	)
Loss of forest due to fires		-			(38	)		(38	)
Transfers from non-current to current		202,260			(202,260	)		-
Total changes		6,862			(54,248	)		(47,386	)
Closing balance		377,819			2,597,374			2,975,193

	12-31-2023
Movement	Current			Non-current			Total
	ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		330,435			2,864,935			3,195,370
Changes in real incurred cost		(3,401	)		163,890			160,489
Additions through acquisition		1,570			416,792			418,362
Sales		(168	)		(6,167	)		(6,335	)
Harvest		(147,901	)		-			(147,901	)
Increases (decreases) in foreign exchange		(4,032	)		20,039			16,007
Loss of forest due to fires		(1,652	)		(63,353	)		(65,005	)
Transfers to non-current assets held for sale		(11,022	)		(43,939	)		(54,961	)
Transfers from non-current to current		159,804			(159,804	)		-
Other increases (decreases)		-			322			322
Changes in fair value		43,923			(377,203	)		(333,280	)
Gain (losses) arising from changes in fair value minus sale costs		-			264,477			264,477
Sales		(51	)		(5,736	)		(5,787	)
Harvest		(322,232	)		-			(322,232	)
Loss of forest due to fires		-			(43,721	)		(43,721	)
Transfers to non-current assets held for sale		(48,148	)		(177,869	)		(226,017	)
Transfers from non-current to current		414,354			(414,354	)		-
Total changes		40,522			(213,313	)		(172,791	)
Closing balance		370,957			2,651,622			3,022,579

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

At the year ended December 31, 2023, a forest fire loss net of insurance compensation of ThU.S.$ 17,191 was recognized for the fires in Chile, reducing the gross value of the biological assets, which represented 3.2% of the value of the forest plantations of Arauco. As of September 30, 2024, a forest fire loss of ThU.S.$ 1,322 was recognized in Chile.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 21. ENVIRONMENTAL MATTERS

Environment management

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

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

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

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

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

Detail information of disbursements related to the environment

As of September 30, 2024 and December 31, 2023 Arauco had made and / or had committed the following disbursements in major environmental projects:

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Disbursements undertaken 2024

Committed Disbursements

09-30-2024

State

Amount

Asset

Asset/expense

Amount

Estimated

Company

Name of project

of project

ThU.S.$

Expense

destination item

ThU.S.$

date

Celulosa Arauco y Constitución S.A.

Environmental improvement studies

In process

Assets

Properties, plants and equipments

1,222

2024

Celulosa Arauco y Constitución S.A.

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

In process

Assets

Properties, plants and equipments

511

2024

Celulosa Arauco y Constitución S.A.

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

In process

999

Assets

Properties, plants and equipments

6,810

2024

Celulosa Arauco y Constitución S.A.

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

In process

3,811

Assets

Properties, plants and equipments

9,261

2024

Celulosa Arauco y Constitución S.A.

Environmental improvement studies

In process

11,181

Expense

Operating costs

7,864

2024

Celulosa Arauco y Constitución S.A.

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

In process

11,982

Expense

Operating costs

5,415

2024

Arauco do Brasil S.A.

Environmental improvement studies

In process

1,545

Assets

Properties, plants and equipments

666

2024

Arauco Argentina S.A.

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

In process

Assets

Properties, plants and equipments

553

2024

Arauco Industria de Paineis S.A.

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

In process

Expense

Operating costs

172

2024

Forestal Arauco S.A.

Environmental improvement studies

In process

1,657

Expense

Operating costs

1,027

2024

Maderas Arauco S.A.

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

In process

376

Expense

Operating costs

2024

Celulosa y Energía Punta Pereira S.A.

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

In process

100

Assets

Properties, plants and equipments

2,550

2024

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

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

In process

733

Expense

Operating costs

2024

Arauco North America, Inc

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

In process

3,000

Assets

Properties, plants and equipments

765

2025

Arauco North America, Inc

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

Finished

340

Assets

Properties, plants and equipments

2024

Arauco North America, Inc

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

In process

Assets

Properties, plants and equipments

820

2025

Arauco North America, Inc

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

Finished

368

Assets

Properties, plants and equipments

2024

TOTAL

36,184

37,667

Disbursements undertaken 2023

Committed Disbursements

12-31-2023

State

Amount

Asset

Asset/expense

Amount

Estimated

Company

Name of Project

of project

ThU.S.$

Expense

destination item

ThU.S.$

date

Celulosa Arauco y Constitucion S.A.

Environmental improvement studies

In process

1,624

Assets

Properties, plants and equipments

608

2024

Celulosa Arauco y Constitucion S.A.

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

In process

9,095

Assets

Properties, plants and equipments

4,019

2024

Celulosa Arauco y Constitucion S.A.

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

In process

5,102

Assets

Properties, plants and equipments

13,072

2024

Celulosa Arauco y Constitucion S.A.

Environmental improvement studies

In process

19,046

Expense

Operating costs

2024

Celulosa Arauco y Constitucion S.A.

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

In process

17,397

Expense

Operating costs

2024

Arauco do Brasil S.A.

Environmental improvement studies

In process

1,395

Assets

Properties, plants and equipments

918

2024

Arauco Industria de Paineis S.A.

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

In process

3,677

Expense

Operating costs

127

2024

Forestal Arauco S.A.

Environmental improvement studies

Finished

336

Expense

Operating costs

2023

Forestal Arauco S.A.

Environmental improvement studies

In process

1,895

Expense

Operating costs

1,785

2023

Maderas Arauco S.A.

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

In process

654

Assets

Properties, plants and equipments

2024

Celulosa y Energía Punta Pereira S.A.

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

In process

Assets

Properties, plants and equipments

2,650

2024

Arauco North America, Inc

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

In process

2,854

Assets

Properties, plants and equipments

697

2024

Arauco North America, Inc

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

In process

249

Assets

Properties, plants and equipments

2024

Arauco North America, Inc

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

Finished

856

Assets

Properties, plants and equipments

2023

Arauco North America, Inc

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

Finished

1,984

Assets

Properties, plants and equipments

2023

TOTAL

66,164

23,928

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 22. NON-CURRENT ASSETS HELD FOR SALE

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

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

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

On July 16, 2024, Arauco transferred all shares and interests held in Arauco Florestal Arapotí S.A., Arauco Forest Brasil S.A., Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., entities owning assets primarily located in the state of Paraná, Brazil. The sale price, which amounted to ThU.S.$1,168,161, was paid on the transaction date and is subject to customary post-closing price adjustments. The net amount received by Arauco after taxes was ThU.S.$967,522, resulting in post-tax profit of ThU.S.$170,041.

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

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

	09-30-2024		12-31-2023
Assets classified as held for sale	ThU.S.$		ThU.S.$
Cash and cash equivalents		-		9,852
Other non-financial assets		-		5,113
Trade and other receivables		-		2,879
Inventories		-		13,780
Biological assets		-		281,823
Tax assets		-		1,348
Intangible assets other tan goodwill		-		115
Property, plant and equiment		3,770		68,040
Right of use assets		-		17,308
Investments accounted using the equity method		-		29,102
Assets classified as held for sale (*)		3,770		429,360

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

	09-30-2024		12-31-2023
Liabilities classified as held for sale	ThU.S.$		ThU.S.$
Other non-financial liabilities		-		1,040
Trade and other payables		-		7,834
Tax liabilities		-		3,430
Lease liabilities		-		18,795
Payables and other accounts payables		-		1
Other provisions		-		822
Deferred tax liabilities		-		67,406
Liabilities classified as held for sale		-		99,328

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 23. FINANCIAL INSTRUMENTS

23.1 Classification

Arauco's financial instruments as of September 30, 2024 and December 31, 2023, are displayed in the table below. Regarding those instruments valued at an amortized cost, an estimation of their fair value is displayed for informational purposes.

Financial instruments	09-30-2024				12-31-2023
Thousands of dollars	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets at fair value through profit or loss (held for trading)		162,451		162,451		132,869		132,869
Derivative		-		-		61		61
Mutual funds (1)		162,451		162,451		132,808		132,808
Financial assets at amortized cost		1,731,960		1,731,960		1,558,929		1,558,929
Cash and cash equivalents		680,396		680,396		437,200		437,200
Cash		510,423		510,423		338,033		338,033
Time deposits		169,973		169,973		99,167		99,167
Accounts receivable (net)		1,027,534		1,027,534		1,106,403		1,106,403
Trade receivables		757,514		757,514		688,134		688,134
Lease receivable		78,011		78,011		80,925		80,925
Sundry debtors		25,768		25,768		18,320		18,320
Other receivables		79,203		79,203		248,217		248,217
Prepayments		87,038		87,038		70,807		70,807
Accounts receivable from related parties		9,809		9,809		2,616		2,616
Other financial assets (2)		14,221		14,221		12,710		12,710
Hedging assets		40,629		40,629		41,044		41,044
Financial liabilities at amortized cost (3)		7,131,136		6,998,593		7,896,442		7,227,349
Bonds issued denominated in U.S. dollars		2,908,051		2,759,551		3,402,747		2,936,324
Bonds issued denominated in U.F. (4)		1,597,077		1,556,182		1,594,291		1,323,194
Bank borrowings in U.S. dollars		609,343		658,008		878,793		933,723
Bank borrowings in other currencies		614,739		622,926		620,258		633,755
Lease liabilities		605,898		605,898		559,382		559,382
Trade and other payables		761,886		761,886		811,032		811,032
Accounts payable to related parties		34,142		34,142		29,939		29,939
Financial liabilities at fair value through profit or loss		73		73		498		498
Hedging liabilities		92,931		92,931		107,506		107,506

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

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.2 Fair value hierarchy of financial assets and liabilities

The assets and liabilities measured at fair value in the interim consolidated statements of financial position as of September 30, 2024 and December 31, 2023, have been measured based on the valuation methodologies provided in IFRS 13. The methodologies applied for each financial instrument are classified according to their hierarchy as follows:

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

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

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

	09-30-2024		Level 1		Level 2		Level 3
Fair value	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Financial assets at fair value through profit or loss (held for trading)
Derivatives		-		-		-		-
Mutual Funds		162,451		162,451		-		-
Hedging assets		40,629		-		40,629		-
Financial liabilities at fair value through profit or loss		73		-		73		-
Hedging liabilities		92,931		-		92,931		-

	12-31-2023		Level 1		Level 2		Level 3
Fair value	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
Financial assets at fair value through profit or loss (held for trading)
Derivatives		61				61		-
Mutual Funds		132,808		132,808		-		-
Hedging assets		41,044		-		41,044		-
Financial liabilities at fair value through profit or loss		498		-		498		-
Hedging liabilities		107,506		-		107,506		-

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

23.3 Explanation of the valuation of financial instruments.

Cash and cash equivalent and accounts receivable

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

Derivative financial instruments

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

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

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

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

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

Financial liabilities

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

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

The following table sets forth a reconciliation between the financial liabilities and the interim consolidated statements of financial position as of September 30, 2024 and December 31, 2023:

	09-30-2024
Thousands of dollars	Up to 90 days		From 91 days to 1 year		Other current financial liabilities, Total		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Other non- current financial liabilities, Total		Total
Bonds obligations		78,728		34,854		113,582		299,112		1,206,487		2,885,947		4,391,546		4,505,128
Bank borrowings		169,850		73,725		243,575		754,865		190,032		35,610		980,507		1,224,082
Swap and Forward		1,825		-		1,825		91,179		-		-		91,179		93,004
Total other financial liabilities (a)		250,403		108,579		358,982		1,145,156		1,396,519		2,921,557		5,463,232		5,822,214

	09-30-2024
Thousands of dollars	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Lease liabilities		11,911		28,302		40,213		77,743		67,512		420,430		565,685		605,898
Total lease liabilities (b)		11,911		28,302		40,213		77,743		67,512		420,430		565,685		605,898

	09-30-2024
Thousands of dollars	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Trade and other payables		702,245		18,175		720,420		41,466		-		-		41,466		761,886
Accounts payable to related companies		7,891		-		7,891		5,015		7,581		13,655		26,251		34,142
Total accounts payable (c)		710,136		18,175		728,311		46,481		7,581		13,655		67,717		796,028
Total financial liabilities (a) + (b) + (c)		972,450		155,056		1,127,506		1,269,380		1,471,612		3,355,642		6,096,634		7,224,140

	12-31-2023
Thousands of dollars	Up to 90 days		From 91 days to 1 year		Other current financial liabilities, Total		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Other non- current financial liabilities, Total		Total
Bonds obligations		29,114		569,526		598,640		296,326		708,379		3,393,693		4,398,398		4,997,038
Bank borrowings		86,243		388,779		475,022		786,031		169,016		68,982		1,024,029		1,499,051
Swap and Forward		8,863		-		8,863		99,141		-		-		99,141		108,004
Total other financial liabilities (a)		124,220		958,305		1,082,525		1,181,498		877,395		3,462,675		5,521,568		6,604,093

	12-31-2023
Thousands of dollars	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Lease liabilities		16,911		30,331		47,242		70,451		58,933		382,756		512,140		559,382
Total lease liabilities (b)		16,911		30,331		47,242		70,451		58,933		382,756		512,140		559,382

	12-31-2023
Thousands of dollars	Up to 90 days		From 91 days to 1 year		Total Current		From 1 year to 3 years		From 3 years to 5 years		More than 5 years		Total non- current		Total
Trade and other payables		744,010		16,445		760,455		27,763		-		22,814		50,577		811,032
Accounts payable to related companies		6,958		-		6,958		-		7,581		15,400		22,981		29,939
Total accounts payable (c)		750,968		16,445		767,413		27,763		7,581		38,214		73,558		840,971
Total financial liabilities (a) + (b) + (c)		892,099		1,005,081		1,897,180		1,279,712		943,909		3,883,645		6,107,266		8,004,446

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.4 Derivative instruments

Hedging instruments recorded as of September 30, 2024 are cash flow hedges. Arauco uses derivatives for hedging purposes, such as cross currency swaps, currency and commodity forwards, interest rate swaps, and options. Depending on the fair value of each instrument, the position could be either an asset or a liability, and they are listed in the interim consolidated statements of financial position under other non-current financial assets or other non-current financial liabilities, respectively. The effects for the period are presented in interim consolidated statement of changes in equity as other comprehensive income or the interim consolidated statements of comprehensive income as finance income or finance costs, net of differences in exchange rate of the hedged items and the deferred tax.

A summary of the derivative financial instruments included in the interim consolidated statements of financial position as of September 30, 2024 and December 31, 2023, is presented below:

Financial instruments	09-30-2024 Fair value ThU.S.$			12-31-2023 Fair value ThU.S.$
Financial assets at fair value through profit or loss		-			61
Derivatives (1)		-			61
Hedging assets		40,629			41,044
Derivatives (1)		83			7,533
Cross Currency Swaps (2)		40,546			33,511
Financial liabilities at fair value through profit or loss		(73	)		(498	)
Derivatives (1)		(73	)		(498	)
Hedging liabilities		(92,931	)		(107,506	)
Derivatives (1)		(2,248	)		(1,201	)
Cross currency swaps (2)		(90,683	)		(106,305	)

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.4.1. Chile

In order to cover the exposure to variation in cash flows associated with fluctuations in exchange rates, interest rates or commodity prices, Arauco Chile has the following derivatives as of September 30, 2024 and December 31, 2023:

Cross currency swaps

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

									09-30-2024			12-31-2023
Bond	Institution	Amount U.S.$		Amount U.F.		Starting date	Ending date		fair value ThU.S.$			fair value ThU.S.$
F	BCI		19,250,012		500,000	10-30-2021		10-30-2029		2,570			2,400
F	Scotiabank		19,273,129		500,000	10-30-2021		10-30-2029		2,837			2,673
F	Banco de Chile		18,988,533		500,000	4-30-2019		10-30-2029		2,205			1,998
F	BCI		19,189,218		500,000	4-30-2023		10-30-2029		2,162			1,922
F	BCI		19,213,215		500,000	4-30-2023		10-30-2029		2,141			1,901
F	BCI		18,810,779		500,000	4-30-2023		10-30-2029		2,494			2,273
F	BCI		18,988,531		500,000	4-30-2023		10-30-2029		2,334			2,104
P	BCI		29,750,020		772,727	11-15-2021		11-15-2032		4,321			4,019
P	BCI		29,747,510		772,727	11-15-2021		11-15-2032		5,094			4,861
P	Itau		32,770,723		772,727	11-15-2023		11-15-2032		251			(407	)
P	Santander		64,526,904		1,545,454	11-15-2023		11-15-2032		112			(685	)
R	Santander		128,611,183		3,000,000	10-1-2014		4-1-2024		-			(4,612	)
R	JP Morgan		43,185,224		1,000,000	10-1-2014		4-1-2024		-			(1,556	)
R	Itau		43,277,070		1,000,000	10-1-2014		4-1-2024		-			(1,447	)
R	Deutsche		42,870,394		1,000,000	4-1-2024		4-1-2035		(1,731	)		-
R	Deutsche		42,870,394		1,000,000	4-1-2024		4-1-2035		(1,420	)		-
R	JP Morgan		42,870,394		1,000,000	4-1-2024		4-1-2035		(931	)		-
R	Deutsche		43,185,224		1,000,000	4-1-2024		4-1-2035		(1,453	)		-
R	JP Morgan		43,277,070		1,000,000	4-1-2024		4-1-2035		(1,658	)		-
S	Santander		201,340,031		5,000,000	11-15-2016		11-15-2026		11,532			8,946
W	Goldman Sachs		40,521,750		1,000,000	10-10-2018		10-10-2028		682			(129	)
W	Scotiabank		40,537,926		1,000,000	10-10-2018		10-10-2028		583			(154	)
W	Goldman Sachs		40,066,555		1,000,000	10-10-2018		10-10-2028		1,228			414
X	Santander		118,400,504		3,000,000	10-10-2018		10-10-2038		(4,578	)		(6,778	)
X	Santander		97,971,786		2,500,000	10-10-2018		10-10-2038		(3,503	)		(5,358	)
Y	JP Morgan		89,387,460		2,000,000	4-10-2023		4-10-2032		(8,185	)		(9,435	)
Z	Santander		90,274,363		2,000,000	4-10-2023		4-10-2032		(10,060	)		(10,687	)
Z	Banco de Chile		44,572,044		1,000,000	4-10-2023		4-10-2032		(3,729	)		(4,135	)
Z	JP Morgan		44,572,044		1,000,000	4-10-2023		4-10-2032		(3,669	)		(4,290	)
Z	JP Morgan		44,559,642		1,000,000	4-10-2023		4-10-2032		(3,350	)		(3,962	)
AB	BCI		43,724,036		1,000,000	5-15-2023		5-15-2033		(2,736	)		(3,116	)
AB	BCI		43,709,927		1,000,000	5-15-2023		5-15-2033		(2,372	)		(2,744	)
AB	BCI		43,762,973		1,000,000	5-15-2023		5-15-2033		(2,520	)		(2,893	)
AB	Banco de Chile		43,601,403		1,000,000	5-15-2023		5-15-2033		(2,252	)		(2,534	)
AB	Itau		43,654,189		1,000,000	5-15-2023		5-15-2033		(2,017	)		(2,581	)
										(15,618	)		(33,992	)

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

								09-30-2024			12-31-2023
Institution	Amount U.S.$		Amount EUR		Starting date	Ending date		fair value ThU.S.$			fair value ThU.S.$
Santander		76,786,471		64,705,882	6-15-2021		12-15-2029		(7,622	)		(8,173	)
Banco de Chile		38,393,235		32,352,941	6-15-2021		12-15-2029		(3,331	)		(3,640	)
MUFG		76,786,471		64,705,882	6-15-2021		12-15-2029		(6,814	)		(7,729	)
JP Morgan		153,572,941		129,411,765	6-15-2021		12-15-2029		(13,339	)		(15,392	)
HSBC		38,393,235		32,352,941	6-15-2021		12-15-2029		(3,413	)		(3,868	)
									(34,519	)		(38,802	)

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.4.2. Uruguay

Forward

As of September 30, 2024 and December 31, 2023, Arauco through its subsidiaries as a joint operation (50%) in Uruguay maintained the following forward contracts in force and effect for the purposes of ensuring an exchange rate for sale of dollars:

Exchange rate	Institution	09-30-2024 notional ThU.S.$		09-30-2024 fair value ThU.S.$			12-31-2023 notional ThU.S.$		12-31-2023 fair value ThU.S.$
UYUUSD	HSBC - Uruguay		-		-			8,490		292
UYUUSD	Citibank U.K.		1,350		36			5,550		163
UYUUSD	Itaú - Uruguay		1,900		47			10,555		358
UYUUSD	Banco de la República Oriental de Uruguay		-		-			1,920		107
UYUUSD	HSBC - Uruguay		14,865		(456	)		-		-
UYUUSD	Citibank U.K.		2,950		(31	)		-		-
UYUUSD	Itaú - Uruguay		6,845		(220	)		2,300		(7	)
UYUUSD	Banco de la República Oriental de Uruguay		1,075		(74	)		-		-
UYUUSD	JPMorgan Chase Bank U.K.		4,620		(134	)		-		-
EURUSD	Itaú - Uruguay		-		-			299		14
EURUSD	Santander - Uruguay		-		-			916		10
					(832	)				937

Commodity swap

Arauco Uruguay's profits and through its subsidiaries as a joint operation (50%), also face exposure to the price variation of certain fuels, as occurs with Fuel Oil N°6, which is used during the pulp manufacturing process. In order to minimize this risk, the volatility of future flows associated to the purchase of Fuel Oil No. 6 through forwards of this commodity. The agreements that are in force and effect as of September 30, 2024 and December 31, 2023, are detailed below:

Commodity	Institution	09-30-2024 notional ThU.S.$		09-30-2024 fair value ThU.S.$			12-31-2023 notional ThU.S.$		12-31-2023 fair value ThU.S.$
Fuel Oil N°6	JP Morgan - N.A.		-		-			734		43
Fuel Oil N°6	DNB Bank ASA		-		-			331		9
Fuel Oil N°6	BNP Paribas		-		-			531		19
Fuel Oil N°6	JP Morgan - N.A.		3,428		(301	)		3,523		(353	)
Fuel Oil N°6	DNB Bank ASA		6,164		(532	)		6,874		(530	)
Fuel Oil N°6	BNP Paribas		5,913		(573	)		3,580		(313	)
					(1,406	)				(1,125	)

23.4.3. United States

Interest rate swap

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

						09-30-2024 fair value		12-31-2023 fair value
Institution	Amount ThU.S.$		Starting date	Ending date		ThU.S.$		ThU.S.$
JP Morgan - N.A.		70,000,000	4-28-2020		4-28-2024		-		2,234
Goldman Sachs N.A.		70,000,000	4-28-2020		4-28-2024		-		2,109
JP Morgan - N.A.		70,000,000	4-28-2020		4-28-2024		-		2,236
							-		6,579

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.4.4. Argentina

Forward

As of September 30, 2024, Arauco through its subsidiary in Argentina does not maintain current forward contracts. As of December 31, 2023, the valuation of this instrument is shown below:

								09-30-2024		12-31-2023
Exchange rate	Institution		Amount ThU.S.$		Starting date	Ending date		fair value ThU.S.$		fair value ThU.S.$
ARSUSD		HSBC		5,000	11-29-2023		1-31-2024		-		(496	)
									-		(496	)

23.5 Cash equivalent, loans, receivables and other financial assets

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

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

As of September 30, 2024 and 2023, there are provisions for impairment for ThU.S.$ 14,453 and ThU.S.$ 12,473, respectively.

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Financial assets at amortized cost		1,731,960		1,558,929
Cash and cash equivalents (Mutual Funds not included)		680,396		437,200
Cash		510,423		338,033
Time deposits		169,973		99,167
Accounts receivables (net)		1,037,343		1,109,019
Trade receivables		757,514		688,134
Lease receivable		78,011		80,925
Sundry debtors		25,768		18,320
Other receivables		79,203		248,217
Prepayments		87,038		70,807
Accounts receivable from related parties		9,809		2,616
Other financial assets (*)		14,221		12,710

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

23.5.1. Cash and cash equivalents

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

The composition of cash and cash equivalents (including the balance of mutual funds displayed in this note as valuation, instruments at fair value with profit or loss) at September 30, 2024 and December 31, 2023, classified by currency is as follows:

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Cash and cash equivalents		842,847		570,008
U.S. dollars		624,247		310,108
Euro		5,081		6,532
Real		81,159		30,402
Argentine pesos		14,852		58,592
Mexican pesos		50,443		26,439
Other currencies		5,563		3,149
Chilean pesos		61,502		134,786

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

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

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

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

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

The following table sets forth trade and other current/non-current receivables classified by currencies as of September 30, 2024 and December 31, 2023:

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Trade and other current receivables		955,996		997,902
U.S. dollars		632,216		711,883
Euros		29,704		30,330
Real		86,248		67,137
Argentine pesos		41,865		19,916
Mexican pesos		35,904		34,234
Other currencies		1,063		640
Chilean pesos		108,751		115,907
U.F.		20,245		17,855
Accounts receivable from related parties, current		9,809		2,616
Argentine pesos		1,167		174
Chilean pesos		8,642		2,442
Trade and other non-current receivables		71,538		108,501
U.S. dollars		9,774		20,613
Real		-		21,614
Argentine pesos		495		-
Chilean pesos		1,604		1,889
U.F.		59,665		64,385

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.6 Financial liabilities

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

Financial liabilities	09-30-2024 ThU.S.$		12-31-2023 ThU.S.$
Total financial liabilities		7,224,140		8,004,446
Financial liabilities at fair value through profit or loss		73		498
Hedging liabilities		92,931		107,506
Financial liabilities at amortized cost		7,131,136		7,896,442

The following table sets forth the current portion of the non-current bank borrowings and debt issued as of September 30, 2024 and December 31, 2023:

	09-30-2024 ThU.S.$		12-31-2023 ThU.S.$
Bank borrowings - current portion		116,323		304,830
Bonds issued - current portion		113,582		89,970
Total		229,905		394,800

23.7 Financial liabilities measured at amortized cost

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

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

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

		09-30-2024		12-31-2023		09-30-2024		12-31-2023
	Currency	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
		Amortized cost				Fair value
Total financial liabilities			7,131,136		7,896,442		6,998,593		7,227,349
Bonds issued	U.S. dollar		2,908,051		3,402,747		2,759,551		2,936,324
Bonds issued	U.F.		1,597,077		1,594,291		1,556,182		1,323,194
Bank borrowings	U.S. dollar		609,343		878,793		658,008		933,723
Bank borrowings	Euro		385,149		414,428		393,336		427,925
Bank borrowings	Other currencies		229,590		205,830		229,590		205,830
Lease liabilities	U.F.		20,430		31,797		20,430		31,797
Lease liabilities	Chilean pesos		25,021		33,489		25,021		33,489
Lease liabilities	Real		421,102		364,011		421,102		364,011
Lease liabilities	Mexican pesos		1,560		3,540		1,560		3,540
Lease liabilities	U.S. dollar		136,693		126,199		136,693		126,199
Lease liabilities	Euro		486		150		486		150
Lease liabilities	Other currencies		606		196		606		196
Trade and other payables	U.S. dollar		210,416		173,681		210,416		173,681
Trade and other payables	Euro		21,613		18,933		21,613		18,933
Trade and other payables	Real		94,151		98,198		94,151		98,198
Trade and other payables	Argentine pesos		47,516		46,403		47,516		46,403
Trade and other payables	Mexican pesos		22,163		18,336		22,163		18,336
Trade and other payables	Other currencies		12,978		14,609		12,978		14,609
Trade and other payables	Chilean pesos		311,732		399,338		311,732		399,338
Trade and other payables	U.F.		41,317		41,534		41,317		41,534
Accounts payable to related parties	U.S. dollar		26,955		15,400		26,955		15,400
Accounts payable to related parties	Chilean pesos		7,187		14,539		7,187		14,539

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

The financial liabilities at amortized cost presented in the interim consolidated statements of financial position as of September 30, 2024 and December 31, 2023 are as follows:

	09-30-2024
	ThU.S.$
	Current		Non-current		Total
Other financial liabilities		357,157		5,372,053		5,729,210
Lease liabilities		40,213		565,685		605,898
Trade and other payables		720,420		41,466		761,886
Accounts payable to related parties		7,891		26,251		34,142
Total financial liabilities at amortized cost		1,125,681		6,005,455		7,131,136

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

23.8 Cash flow hedges reserve reconciliation

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

	January - September						July - September
	2024			2023			2024			2023
	ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Opening balance		(64,952	)		(10,112	)		(60,766	)		(31,809	)
Gains (losses) on cash flow hedges, before tax		14,755			(53,404	)		6,125			(23,706	)
Recycle of cash flow hedges to profit or loss		(2,916	)		209			-			-
Income tax relating to cash flow hedges of other comprehensive income		(1,156	)		17,376			372			9,584
Closing balance		(54,269	)		(45,931	)		(54,269	)		(45,931	)

23.9 Capital disclosures

23.9.1 Information on objectives, policies and processes applied by the company regarding capital management

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

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

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

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

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

23.9.2 Qualitative information on objectives, policies and processes applied by the company regarding capital management

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.9.3 Quantitative information on capital management

The financial safeguards to which Arauco is subject are shown in the following table:

09-30-2024

12-31-2023

Interest

Debt level

Instrument

ThU.S.$

coverage >= 2.0x

(1) <= 1.2x

Domestic bonds

1,597,077

1,594,291

N/R

Term loan credit

278,427

272,664

RCF credit (2)

225,040

Term loan credit (3)

209,094

Term loan credit (3)

212,619

Syndicate ECA

385,149

414,428

N/R: Not required for the financial obligation.

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

(2) In July 2024, Arauco paid the RCF drawn for MUS$ 225 with maturity in February 2025. Subsequently, during September 2024, a new RCF was subscribed with a maximum amount of MUS$ 450 with maturity in 2027, which replaced the RCF that was valid. As of the date of publication of these financial statements, the new line mentioned above has not been drawn.

(3) In March 2024, our subsidiary Arauco North America, Inc. signed a Term Loan with a group of banks, for a total of MUS$210, where Arauco acts as guarantor. The structure of this loan is for three years and a single capital payment at the end of that period. During that same month, our subsidiary Arauco North America, Inc. fully prepaid its 2017 committed line of credit loan (for which Arauco acted as guarantor), for a total of MUS$210 plus accrued interest, which was due on the April 28, 2024.

As of September 30, 2024 and December 31, 2023, Arauco has complied with all of its financial covenants.

The following table sets forth the credit ratings of our debt instruments as of September 30, 2024, are as follows:

Instrument

Standard & Poor’s

Fitch Ratings

Moody’s

Feller Rate

Local bonds

Foreign bonds

BBB-

BBB

Baa3

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

The capitalization of Arauco as of September 30, 2024 and December 31, 2023 is as follows:

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Equity		8,493,189		8,009,029
Bank borrowings		1,224,082		1,499,051
Lease liabilities		605,898		559,382
Bonds issued		4,505,128		4,997,038
Capitalization		14,828,297		15,064,500

23.10 Risk management

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.10.1 Type of risk: Credit risk

Description

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

Explanation of credit risk exposure and how this risk arises

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

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

Arauco does not have a securitized portfolio.

	09-30-2024		12-31-2023
	ThU.S.$		ThU.S.$
Current receivables
Trade receivables		757,478		688,098
Lease receivable		18,415		16,314
Sundry debtors		16,129		8,615
Other receivables		77,264		222,945
Prepayments		86,710		61,930
Net subtotal		955,996		997,902
Trade receivables		768,075		696,226
Lease receivable		18,415		16,314
Sundry debtors		17,544		10,464
Other receivables		78,271		223,956
Prepayments		86,710		61,930
Gross subtotal		969,015		1,008,890
Provision for doubtful trade receivables		10,597		8,128
Provision for doubtful lease receivable		-		-
Provision for doubtful sundry debtors		1,415		1,849
Provision for doubtful other receivables		1,007		1,011
Subtotal bad debt		13,019		10,988
Non-current receivables
Trade receivables		36		36
Lease receivable		59,596		64,611
Sundry debtors		9,639		9,705
Other receivables		1,939		25,272
Prepayments		328		8,877
Net subtotal		71,538		108,501
Trade receivables		1,470		1,521
Lease receivable		59,596		64,611
Sundry debtors		9,639		9,705
Other receivables		1,939		25,272
Prepayments		328		8,877
Gross subtotal		72,972		109,986
Provision for doubtful trade receivables		1,434		1,485
Provision for doubtful lease receivable		-		-
Provision for doubtful sundry debtors		-		-
Provision for doubtful other receivables		-		-
Subtotal bad debt		1,434		1,485

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Explanation of risk management objectives, policies and processes, and measurement methods

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

As of September 30, 2024, Arauco’s balance for commercial debtors was ThU.S.$ 769,547 of which, according to the agreed sales conditions, 58.02% corresponded to sales on credit (open account), 39.98% to sales with letters of credit and 1.99% to other types of sales. The client with the largest Open Account debt represented 2.14% of the total accounts receivable as of that date.

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

September 30, 2024
Age of trade receivables
Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
N° debtor		1,682			955			56			31			16			32			4			14			5			73			2,868
ThU.S.$		727,180			31,945			1,219			310			307			199			69			158			56			8,102			769,545
%		94.49	%		4.15	%		0.16	%		0.04	%		0.04	%		0.03	%		0.01	%		0.02	%		0.01	%		1.05	%		100	%

December 31, 2023
Age of trade receivables
Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
N° debtor		1,375			750			34			30			79			8			3			3			2			42			2,326
ThU.S.$		640,699			41,369			1,503			9,275			70			104			55			15			11			4,646			697,747
%		91.82	%		5.93	%		0.22	%		1.33	%		0.01	%		0.01	%		0.01	%		0.00	%		0.00	%		0.67	%		100	%

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

September 30, 2024:

Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
Letters of credit		306,015			1,687			-			-			-			-			-			-			-			-			307,702
Loss allowance provision		-			-			-			-			-			-			-			-			-			-			-
Expected loss rate		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Credit line		409,838			27,964			1,092			178			240			161			35			158			49			6,800			446,515
Loss allowance provision		4,160			-			-			-			-			-			-			9			-			6,560			10,729
Expected loss rate		1.02	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		5.70	%		0.00	%		96.47	%
Others		11,327			2,294			127			132			67			38			34			-			7			1,302			15,328
Loss allowance provision		-			-			-			-			-			-			-			-			-			1,302			1,302
Expected loss rate		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		100.00	%
Total trade receivables (ThU.S.$)		727,180			31,945			1,219			310			307			199			69			158			56			8,102			769,545
Total allowance for doubtful accounts (ThU.S.$)		4,160			-			-			-			-			-			-			9			-			7,862			12,031

December 31, 2023:

Days	Non- past due			1 to 30			31 to 60			61 to 90			91 to 120			121 to 150			151 to 180			181 to 210			211 to 250			More than 250			Total
Letters of credit		303,333			4,828			-			-			-			-			-			-			-			-			308,161
Loss allowance provision		-			-			-			-			-			-			-			-			-			-			-
Expected loss rate		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Credit line		329,266			35,426			1,468			9,214			58			101			55			15			11			3,307			378,921
Loss allowance provision		5,315			-			44			30			6			10			6			15			11			2,799			8,236
Expected loss rate		1.61	%		0.00	%		3.00	%		0.33	%		10.34	%		9.90	%		10.91	%		100.00	%		100.00	%		84.64	%
Others		8,100			1,115			35			61			12			3			-			-			-			1,339			10,665
Loss allowance provision		-			-			-			6			5			2			-			25			-			1,339			1,377
Expected loss rate		0.00	%		0.00	%		0.00	%		9.84	%		41.67	%		66.67	%		0.00	%		0.00	%		0.00	%		100.00	%
Total trade receivables (ThU.S.$)		640,699			41,369			1,503			9,275			70			104			55			15			11			4,646			697,747
Total allowance for doubtful accounts (ThU.S.$)		5,315			-			44			36			11			12			6			40			11			4,138			9,613

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

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

Regarding the loss allowance for trade receivables and others, below we provide detail for the movements as of September 30, 2024 and December 31, 2023:

	09-30-2024			12-31-2023
	ThU.S.$			ThU.S.$
Opening loss allowance as at January 1		12,473			7,960
Increase in loan loss allowance recognized in profit or loss during the year		4,547			3,507
Increase due to business combination		-			2,043
Receivables written off during the year as uncollectible		(46	)		-
Unused amount reversed		(2,521	)		(1,037	)
Closing balance		14,453			12,473

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

Explanation regarding the sales risk with letters of credit

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

Explanation of the sales risk with credit line

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

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

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

In order to minimize the credit risk for term or Open Account sales, it is Arauco’s policy to take out insurance to cover the export sales of companies Celulosa Arauco y Constitución S.A., Maderas Arauco S.A., Forestal Arauco S.A., Arauco Argentina S.A., and Arauco do Brasil S.A., as well as the domestic sales of Arauco Europe Coöperatief U.A., Arauco Argentina S.A., Araucomex S.A. de C.V., Arauco Industria de México, S.A. de C.V., Arauco Peru S.A., Arauco North America, Inc., Arauco Canada Ltd., Celulosa Arauco y Constitución S.A., Maderas Arauco S.A., Arauco do Brasil S.A. and Arauco Industria de Paineis S.A. Arauco works with credit insurance company Allianz Trade For Multinationals (Aa2 rating, as per risk rating companies Moody’s).

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

As another way of minimizing risk and supporting a line of credit approved by the Credit Committee through guarantees, Arauco holds guarantees such as mortgages, pledges, Standby letters of credit, bank performance bonds, checks, promissory notes, borrowings or any other that could be required under the laws of each country. The total amount held in guarantees amounts to ThU.S.$ 121,922, effective as of September 30, 2024, as summarized in the following chart. The procedure for guarantees is regulated by Arauco’s Policy on Guarantees, whose purpose is to control their accounting, due date and custody.

Guarantees Arauco group (ThU.S.$)
Guarantees debtors (received from clients)
Certificate of deposits	4,059	3.33	%
Standby	13,884	11.39	%
Promissory notes	88,772	72.81	%
Finance	1,908	1.56	%
Mortgage	1,070	0.88	%
Pledge	632	0.52	%
Loan agreement	11,597	9.51	%
Total guarantees	121,922	100.00	%

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

In summary, the Open Account debt covered by the various insurance policies and guarantees amounts to 95.47% and, therefore, Arauco’s portfolio exposure amounts to 4.53%.

Secured open accounts receivable	ThU.S.$		%
Total open accounts receivable		495,624		100.00	%
Secured receivables (*)		473,172		95.47	%
Unsecured receivables		22,452		4.53	%

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

Investment policy:

Arauco has an Investment Policy which identifies and limits the financial instruments and the entities into which Arauco, is authorized to invest. The Company’s Treasury Department is centralized. For the subsidiary in Argentina, the Corporate Finance Department monitors and controls compliance with Arauco financial policies, but its daily treasury activity is managed independently. The Head Office is responsible for carrying out investments, cash flow surplus investments, and short and long-term debt subscriptions. Exceptions to this rule apply to short and long-term debt, and will be for specific investments made through other companies where authorization is required from the Chief Financial Officer.

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

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

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

The required information to evaluate the various criteria are obtained from published financial statements from the banks under evaluation and from the credit risk ratings of short and long-term debt securities, defined by the regulatory body (Commission for the Financial Market) and carried out by rating agencies authorized by said organization.

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

23.10.2 Type of risk: Liquidity risk

Description

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

Explanation of liquidity risk exposure and how this risk arises

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

Explanation of objectives, policies and processes for risk management, and measurement methods

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

The following tables detail Arauco’s liquidity analysis for its financial liabilities as of September 30, 2024 and December 31, 2023.

The tables have been drawn up based on the contractual undiscounted cash outflows and their remaining contractual maturities.

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

September 30, 2024				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than				Non
				months		months		Years		years		years		years		5 years		Current		current		Effective
Tax ID	Name	Currency	Bank borrowings	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			Nominal rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Bank of Nova Scotia		9,815		9,762		19,577		283,742		-		-		-		19,577		303,319		7.05	%	1.75% + Sofr 6m
93.458.000-1	Celulosa Arauco y Constitución S.A.	Euros	BNP paribas / ECA		36,996		36,809		73,059		72,321		71,578		70,826		35,135		73,805		322,919		1.10	%	Fixed 1.06%
-	TecVerde Engenharia S.A.	Brazilian real	Itaú		-		1,765		-		-		-		-		-		1,765		-		6.76	%	Fixed 6.56%
-	TecVerde Engenharia S.A.	Brazilian real	Banco Regional de Desenvolvimento do Extremo Sul		13		38		102		100		-		-		-		51		202		5.22	%	Fixed 5.10%
-	TecVerde Engenharia S.A.	Brazilian real	Santander		-		3,424		-		-		-		-		-		3,424		-		14.19	%	CDI + 2.66%
-	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		15,370		-		-		-		-		-		-		15,370		-		4.97	%	Fixed 4.97%
-	Eufores S.A.	U.S. dollar	BBVA		9,762		-		-		-		-		-		-		9,762		-		5.60	%	Fixed 5.6%
-	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		39,447		-		-		-		-		-		-		39,447		-		4.97	%	Fixed 4.97%
-	Stora Enso Uruguay S.A.	U.S. dollar	Banco República Oriental del Uruguay		2,561		-		-		-		-		-		-		2,561		-		4.97	%	Fixed 4.97%
-	Eufores S.A.	U.S. dollar	Itaú		12,315		-		-		-		-		-		-		12,315		-		5.60	%	Fixed 5.6%
-	Eufores S.A.	U.S. dollar	Santander		28,259		-		-		-		-		-		-		28,259		-		5.60	%	Fixed 5.6%
-	Eufores S.A.	U.S. dollar	Scotiabank		10,273		-		-		-		-		-		-		10,273		-		5.60	%	Fixed 5.6%
-	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		-		56		487		-		-		-		-		56		487		12.40	%	CDI + 1.75%
-	Arauco do Brasil S.A.	Brazilian real	Banco Safra S.A.		-		1,837		1,697		1,548		1,405		648		-		1,837		5,298		12.05	%	CDI + 1.40%
-	Arauco do Brasil S.A.	Brazilian real	Banco Safra S.A.		-		12,304		11,257		10,285		9,349		4,312		-		12,304		35,203		12.05	%	CDI + 1.40%
-	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		-		5,187		5,210		14,345		21,998		19,892		-		5,187		61,445		11.60	%	CDI + 0.95%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		-		7,774		68,098		-		-		-		-		7,774		68,098		12.27	%	CDI + 1.62%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco BTG Pactual S.A.		-		19,883		18,053		16,192		-		-		-		19,883		34,245		12.21	%	CDI + 1.56%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco Safra S.A.		5,967		5,651		10,541		4,867		-		-		-		11,618		15,408		12.20	%	CDI + 1.55%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		351		-		-		-		-		-		351		-		16.50	%	Fixed 16.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		369		-		-		-		-		-		-		369		-		15.65	%	Fixed 15.65%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		942		-		-		-		-		-		-		942		-		15.65	%	Fixed 15.65%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		445		-		-		-		-		-		445		-		15.65	%	Fixed 15.65%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		674		-		-		-		-		-		674		-		15.00	%	Fixed 15.00%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		874		-		-		-		-		-		874		-		15.00	%	Fixed 15.00%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		589		-		-		-		-		-		-		589		-		12.50	%	Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		523		-		-		-		-		-		-		523		-		12.50	%	Fixed 12.50%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		338		-		-		-		-		-		338		-		12.50	%	Fixed 12.50%
-	Arauco North America, Inc.	U.S. dollar	Banco Itau Corpbanca - NY Branch		-		12,339		12,339		216,153		-		-		-		12,339		228,492		5.80	%	1.55% + Sofr 6m
			Total bank borrowings		173,201		119,511		220,42		619,553		104,33		95,678		35,135		292,712		1,075,116

September 30, 2024				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		years		years		years		years		years		Current		current		Effective
Tax ID	Name	Currency	Bonds	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			Nominal rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		11,818		11,616		22,627		21,820		21,013		20,205		9,800		23,434		95,465		4.26	%	4.21%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		4,727		4,647		9,051		8,728		8,405		8,082		3,920		9,374		38,186		4.24	%	4.21%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-P		12,829		12,639		24,708		23,948		23,188		22,428		72,509		25,468		166,781		3.96	%	3.96%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-R		3,767		3,767		7,535		7,535		7,535		7,535		256,365		7,534		286,505		3.57	%	3.57%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-S		2,519		2,519		5,038		213,677		-		-		-		5,038		218,715		2.43	%	2.39%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-W		1,323		1,323		2,647		2,647		2,647		128,018		-		2,646		135,959		2.12	%	2.09%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-X		3,115		3,115		6,230		6,230		6,230		6,230		322,602		6,230		347,522		2.70	%	2.68%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-Y		1,299		1,299		2,598		2,598		2,598		2,598		90,959		2,598		101,351		3.10	%	3.08%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-Z		3,352		3,352		6,704		6,704		6,704		6,704		301,660		6,704		328,476		3.18	%	3.17%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-AB		3,352		3,352		6,704		6,704		6,704		6,704		321,771		6,704		348,587		3.19	%	3.17%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2027		9,688		9,688		19,375		19,375		509,688		-		-		19,376		548,438		3.90	%	3.88%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2047		11,000		11,000		22,000		22,000		22,000		22,000		807,000		22,000		895,000		5.50	%	5.50%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2029		10,625		10,625		21,250		21,250		21,250		521,250		-		21,250		585,000		4.27	%	4.25%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2049		13,750		13,750		27,500		27,500		27,500		27,500		1,050,000		27,500		1,160,000		5.51	%	5.50%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2030		-		21,000		21,000		21,000		21,000		21,000		510,500		21,000		594,500		4.21	%	4.20%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2050		-		25,750		25,750		25,750		25,750		25,750		1,027,875		25,750		1,130,875		5.16	%	5.15%
			Total		93,164		139,442		230,717		437,466		712,212		826,004		4,774,961		232,606		6,981,360

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

September 30, 2024				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		years		years		years		years		years		Current		current
Tax ID	Name	Currency	Underlying asset class	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
85.805.200-9	Forestal Arauco S.A.	U.F.	Motor vehicles		112		335		355		35		-		-		-		447		390
85.805.200-9	Forestal Arauco S.A.	U.F.	Lands		-		599		421		421		421		421		6,370		599		8,054
85.805.200-9	Forestal Arauco S.A.	U.S. dollar	Lands		60		180		240		240		240		60		-		240		780
85.805.200-9	Forestal Arauco S.A.	U.F.	Plants and equipments		468		1,403		2,123		1,762		1,762		1,468		-		1,871		7,115
85.805.200-9	Forestal Arauco S.A.	Chilean pesos	Plants and equipments		99		296		675		272		-		-		-		395		947
-	Arauco Argentina S.A.	U.S. dollar	Buildings and constructions		146		38		-		-		-		-		-		184		-
-	Arauco Argentina S.A.	U.S. dollar	Plants and equipments		138		415		553		553		553		553		4,655		553		6,867
-	Arauco Argentina S.A.	U.S. dollar	Motor vehicles		210		434		229		-		-		-		-		644		229
-	Novo Oeste Gestão de Ativos Florestais S.A.	Brazilian real	Buildings and constructions		1		5		-		-		-		-		-		6		-
-	Arauco Industria de Paineis S.A.	Brazilian real	IT equipment		1		3		10		-		-		-		-		4		10
-	Arauco do Brasil S.A.	Brazilian real	IT equipment		29		43		189		116		116		29		-		72		450
-	Arauco do Brasil S.A.	Brazilian real	Buildings and constructions		51		203		-		-		-		-		-		254		-
-	Arauco Celulose do Brasil S.A.	Brazilian real	Lands		5,834		18,217		24,676		24,843		24,850		25,921		393,476		24,051		493,766
-	Arauco Celulose do Brasil S.A.	Brazilian real	Buildings and constructions		150		108		144		131		118		89		-		258		482
-	Arauco Celulose do Brasil S.A.	Brazilian real	IT equipment		11		44		60		19		-		-		-		55		79
-	Mahal Empreendimentos e Participações S.A.	Brazilian real	Lands		-		2,484		2,484		2,484		2,484		2,484		19,874		2,484		29,810
-	Mahal Empreendimentos e Participações S.A.	Brazilian real	Buildings and constructions		1		5		-		-		-		-		-		6		-
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Buildings and constructions		437		1,311		1,747		1,747		1,747		437		-		1,748		5,678
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Motor vehicles		27		76		42		1		-		-		-		103		43
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Plants and equipments		1,003		3,019		4,037		4,051		4,066		4,081		53,392		4,022		69,627
93.458.000-1	Celulosa Arauco y Constitución S.A.	Chilean pesos	Motor vehicles		2,844		8,371		7,127		2,367		2,367		2,367		-		11,215		14,228
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Motor vehicles		433		1,299		1,732		1,732		1,732		942		-		1,732		6,138
-	Arauco North America, Inc.	U.S. dollar	Buildings and constructions		36		112		507		446		837		937		5,456		148		8,183
-	Arauco North America, Inc.	U.S. dollar	Motor vehicles		297		770		795		156		47		-		-		1,067		998
-	Arauco Canada Limited	Canadian dollar	Motor vehicles		62		513		69		-		-		-		-		575		69
-	Celulosa y Energía Punta Pereira S.A.	U.S. dollar	Plants and equipments		239		718		720		640		640		484		6,369		957		8,853
-	Eufores S.A.	U.S. dollar	Lands		1,211		3,035		7,124		6,531		6,039		5,747		36,243		4,246		61,684
-	Eufores S.A.	U.S. dollar	Plants and equipments		306		917		1,222		1,222		306		-		-		1,223		2,750
-	Eufores S.A.	U.S. dollar	Buildings and constructions		92		277		263		159		164		170		480		369		1,236
96.510.970-6	Maderas Arauco S.A.	U.F.	Motor vehicles		2		5		4		-		-		-		-		7		4
-	E2E SpA.	Chilean pesos	Lands		71		214		-		-		-		-		-		285		-
-	TecVerde Engenharia S.A.	Brazilian real	Lands		-		-		48		-		-		-		-		-		48
-	Arauco Europe Cooperatief U.A.	Euros	Motor vehicles		10		24		23		17		-		-		-		34		40
-	Arauco Europe Cooperatief U.A.	Euros	Buildings and constructions		42		86		86		88		90		99		-		128		363
-	Araucomex S.A. de C.V.	Mexican pesos	Buildings and constructions		-		508		493		282		167		-		-		508		942
-	Araucomex S.A. de C.V.	U.S. dollar	Buildings and constructions		-		32		131		147		165		184		33		32		660
-	Arauco Industria de México, S.A. de C.V.	Mexican pesos	Motor vehicles		-		38		98		66		28		3		-		38		195
-	Arauco Industria de México, S.A. de C.V.	U.S. dollar	Plants and equipments		-		159		661		701		743		193		-		159		2,298
-	Arauco Industria de México, S.A. de C.V.	Mexican pesos	Lands		-		1		-		-		-		-		-		1		-
-	Arauco Industria de México, S.A. de C.V.	Mexican pesos	IT equipment		-		2		3		-		-		-		-		2		3
-	Araucomex Servicios S.A. de C.V.	Mexican pesos	Motor vehicles		-		-		1		-		-		-		-		-		1
			Total		14,423		46,299		59,092		51,229		49,682		46,669		526,348		60,722		733,020

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

100

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

December 31, 2023				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than				Non
				months		months		Years		years		years		years		5 years		Current		current		Effective
Tax ID	Name	Currency	Bank borrowings	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			Nominal rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Bank of Nova Scotia		-		19,715		19,661		293,584		-		-		-		19,715		313,245		7.09	%	Fixed 7.05%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Bank of Nova Scotia		-		15,037		227,465		-		-		-		-		15,037		227,465		6.63	%	Fixed 6.60%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Banco de Chile		70,316		-		-		-		-		-		-		70,316		-		5.72	%	Fixed 5.72%
93.458.000-1	Celulosa Arauco y Constitución S.A.	Euros	BNP paribas / ECA		-		76,690		75,881		75,118		74,346		73,577		72,803		76,690		371,725		1.10	%	Fixed 1.06%
-	TecVerde Engenharia S.A.	Brazilian real	ITAU		-		1,722		-		-		-		-		-		1,722		-		9.00	%	Fixed 4.63%
-	TecVerde Engenharia S.A.	Brazilian real	Banco Regional de Desenvolvimiento do Extremo Sul		30		34		121		146		-		-		-		64		267		6.00	%	Fixed 5.10%
-	Zona Franca Punta Pereira S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		7,678		-		-		-		-		-		7,678		-		4.76	%	Fixed 4.76%
-	Stora Enso Uruguay S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		2,559		-		-		-		-		-		2,559		-		4.76	%	Fixed 4.76%
-	Eufores S.A.	U.S. dollar	Banco República Oriental del Uruguay		-		28,153		-		-		-		-		-		28,153		-		4.76	%	Fixed 4.76%
-	Eufores S.A.	U.S. dollar	BBVA		-		17,989		-		-		-		-		-		17,989		-		5.60	%	Fixed 5.6%
-	Eufores S.A.	U.S. dollar	ITAU		-		7,713		-		-		-		-		-		7,713		-		5.75	%	Fixed 5.75%
-	Eufores S.A.	U.S. dollar	Scotiabank		-		2,569		-		-		-		-		-		2,569		-		5.65	%	Fixed 5.65%
-	Eufores S.A.	U.S. dollar	Santander		-		28,262		-		-		-		-		-		28,262		-		5.70	%	Fixed 5.7%
-	Arauco Forest Brasil S.A.	Brazilian real	Banco Safra S.A.		2,773		2,641		18,670		16,880		15,104		-		-		5,414		50,654		13.30	%	CDI + 1.65%
-	Arauco do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		34		34		68		550		-		-		-		68		618		13.40	%	CDI + 1.75%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Itaú Unibanco S.A.		4,729		4,752		9,440		76,976		-		-		-		9,481		86,416		13.27	%	CDI + 1.62%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco BTG pactual S.A.		-		6,713		22,786		20,562		18,302		-		-		6,713		61,650		13.21	%	CDI + 1.56%
-	Arauco Celulose do Brasil S.A.	Brazilian real	Banco Safra S.A.		-		13,988		12,628		11,311		-		-		-		13,988		23,939		13.20	%	CDI + 1.55%
-	Arauco Argentina S.A.	Brazilian real	Banco Industria y Comercial de China		-		585		-		-		-		-		-		585		-		14.50	%	Fixed 14.5%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		602		-		-		-		-		-		602		-		15.00	%	Fixed 15.0%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		1,842		-		-		-		-		-		1,842		-		15.50	%	Fixed 15.5%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		953		-		-		-		-		-		-		953		-		15.50	%	Fixed 15.5%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		-		1,192		-		-		-		-		-		1,192		-		15.60	%	Fixed 15.6%
-	Arauco Argentina S.A.	U.S. dollar	Banco Industria y Comercial de China		608		-		-		-		-		-		-		608		-		16.00	%	Fixed 16.0%
-	Arauco North America. Inc.	U.S. dollar	Banco Itau Corpbanca - NY Branch		-		217,811		-		-		-		-		-		217,811		-		7.36	%	1.90% + Sofr 6m
			Total		79,443		458,281		386,720		495,127		107,752		73,577		72,803		537,724		1,135,979

December 31, 2023				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		years		years		years		years		years		Current		current		Effective
Tax ID	Name	Currency	Bonds	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		rate			Nominal rate
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		-		23,465		22,671		21,876		21,081		20,286		19,492		23,465		105,406		4.26	%		4.21	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-F		-		9,386		9,068		8,750		8,432		8,115		7,797		9,386		42,162		4.24	%		4.21	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-P		-		25,444		24,696		23,947		23,199		22,451		82,318		25,444		176,611		3.96	%		3.96	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-R		-		7,417		7,417		7,417		7,417		7,417		256,060		7,417		285,728		3.57	%		3.57	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-S		-		4,959		4,959		212,811		-		-		-		4,959		217,770		2.43	%		2.39	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-W		-		2,605		2,605		2,605		2,605		127,317		-		2,605		135,132		2.12	%		2.09	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-X		-		6,132		6,132		6,132		6,132		6,132		320,618		6,132		345,146		2.70	%		2.68	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-Y		-		2,558		2,558		2,558		2,558		2,558		92,093		2,558		102,325		3.10	%		3.08	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-Z		-		6,599		6,599		6,599		6,599		6,599		303,536		6,599		329,932		3.18	%		3.17	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.F.	Barau-AB		-		6,599		6,599		6,599		6,599		6,599		323,333		6,599		349,729		3.19	%		3.17	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2024		11,250		511,250		-		-		-		-		-		522,500		-		4.52	%		4.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2027		-		19,375		19,375		19,375		519,375		-		-		19,375		558,125		3.90	%		3.88	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2047		-		22,000		22,000		22,000		22,000		22,000		818,000		22,000		906,000		5.50	%		5.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2029		-		21,250		21,250		21,250		21,250		21,250		510,625		21,250		595,625		4.27	%		4.25	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2049		-		27,500		27,500		27,500		27,500		27,500		1,063,750		27,500		1,173,750		5.51	%		5.50	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2030		10,500		10,500		21,000		21,000		21,000		21,000		531,500		21,000		615,500		4.21	%		4.20	%
93.458.000-1	Celulosa Arauco y Constitución S.A.	U.S. dollar	Yankee 2050		12,875		12,875		25,750		25,750		25,750		25,750		1,053,625		25,750		1,156,625		5.16	%		5.15	%
			Total		34,625		719,914		230,179		436,169		721,497		324,974		5,382,747		754,539		7,095,566

101

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

December 31, 2023				Maturity														Total
				Up to 3		3 to 12		1 to 2		2 to 3		3 to 4		4 to 5		More than 5				Non
				months		months		years		years		years		years		years		Current		current
Tax ID	Name	Currency	Underlying asset class	ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$		ThU.S.$
85.805.200-9	Forestal Arauco S.A.	U.F.	Motor vehicles		176		408		442		274		4		-		-		584		720
85.805.200-9	Forestal Arauco S.A.	U.F.	Lands		478		-		478		418		418		418		6,767		478		8,499
85.805.200-9	Forestal Arauco S.A.	U.S. dollar	Lands		60		180		240		240		240		240		-		240		960
85.805.200-9	Forestal Arauco S.A.	U.F.	Plants and equipments		510		1,189		2,078		2,081		1,750		1,750		1,021		1,699		8,680
85.805.200-9	Forestal Arauco S.A.	Chilean pesos	Plants and equipments		101		202		505		632		135		-		-		303		1,272
-	Arauco Argentina S.A.	U.S. dollar	Buildings and constructions		146		439		38		-		-		-		-		585		38
-	Arauco Argentina S.A.	U.S. dollar	IT equipment		5		9		-		-		-		-		-		14		-
-	Arauco Argentina S.A.	U.S. dollar	Plants and equipments		251		418		-		-		-		-		-		669		-
-	Arauco Argentina S.A.	U.S. dollar	Motor vehicles		585		1,004		498		165		-		-		-		1,589		663
-	Arauco Industria de Paineis S.A.	Brazilian real	IT equipment		4		13		12		-		-		-		-		17		12
-	Arauco do Brasil S.A.	Brazilian real	Buildings and constructions		56		8		-		-		-		-		-		64		-
-	Arauco do Brasil S.A.	Brazilian real	IT equipment		11		6		-		-		-		-		-		17		-
-	Arauco Celulose do Brasil S.A.	Brazilian real	Lands		11,308		18,810		24,625		26,022		25,990		27,219		442,609		30,118		546,465
-	Arauco Celulose do Brasil S.A.	Brazilian real	Buildings and constructions		18		55		73		12		-		-		-		73		85
-	Arauco Celulose do Brasil S.A.	Brazilian real	IT equipment		13		38		51		30		-		-		-		51		81
-	Mahal Empreendimentos e Participações S.A.	Brazilian real	Lands		1,106		1,573		2,679		2,679		2,679		2,679		24,114		2,679		34,830
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Buildings and constructions		434		1,302		1,735		1,735		1,735		1,736		-		1,736		6,941
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Motor vehicles		433		1,299		1,732		1,732		1,732		1,732		509		1,732		7,437
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Plants and equipments		1,003		3,008		4,026		4,040		4,055		4,070		56,456		4,011		72,647
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Motor vehicles		2,911		8,732		10,857		5,611		2,423		2,423		1,818		11,643		23,132
93.458.000-1	Celulosa Arauco y Constitución S.A.	Brazilian real	Motor vehicles		42		103		90		27		-		-		-		145		117
-	Arauco North America. Inc.	Brazilian real	Buildings and constructions		481		1,209		1,199		1,442		206		226		270		1,690		3,343
-	Arauco Canada Limited	Brazilian real	Motor vehicles		17		53		51		55		40		-		-		70		146
-	Arauco North America. Inc.	Brazilian real	Motor vehicles		199		626		437		216		62		1		-		825		716
-	Celulosa y Energía Punta Pereira S.A.	Brazilian real	Plants and equipments		240		560		641		641		641		641		6,693		800		9,257
-	Eufores S.A.	Brazilian real	Lands		1,008		3,021		6,808		6,327		5,834		5,548		35,413		4,029		59,930
-	Eufores S.A.	U.S. dollar	Plants and equipments		306		917		917		1,222		1,222		306		-		1,223		3,667
-	Eufores S.A.	U.S. dollar	Buildings and constructions		87		108		111		152		158		163		648		195		1,232
96.510.970-6	Maderas Arauco S.A.	U.F.	Motor vehicles		9		19		6		3		-		-		-		28		9
-	E2E SpA.	Chilean pesos	Lands		107		321		-		-		-		-		-		428		-
-	TecVerde Engenharia S.A.	Brazilian real	Lands		-		-		143		-		-		-		-		-		143
-	Arauco Europe Cooperatief U.A.	Euros	Motor vehicles		8		23		23		13		8		-		-		31		44
-	Arauco Europe Cooperatief U.A.	Euros	Buildings and constructions		19		56		19		-		-		-		-		75		19
-	Araucomex S.A. de C.V.	Mexican pesos	Buildings and constructions		421		1,303		643		359		196		17		-		1,724		1,215
-	Araucomex S.A. de C.V.	U.S. dollar	Buildings and constructions		9		81		126		138		155		174		31		90		624
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	Motor vehicles		25		80		63		40		-		-		-		105		103
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	Buildings and constructions		34		107		157		175		78		-		-		141		410
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	Lands		1		4		-		-		-		-		-		5		-
-	Arauco Industria de México. S.A. de C.V.	Mexican pesos	IT equipment		2		5		4		-		-		-		-		7		4
-	Araucomex Servicios S.A. de C.V.	Mexican pesos	Motor vehicles		7		22		19		3		-		-		-		29		22
79.990.550-7	Investigaciones Forestales Bioforest SpA.	U.F.	Motor vehicles		3		2		-		-		-		-		-		5		-
			Total		22,634		47,313		61,526		56,484		49,761		49,343		576,349		69,947		793,463

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

102

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Guarantees

As of the date of these interim consolidated financial statements, Arauco has financial assets of approximately MU.S.$ 22 that have been pledged to third parties (beneficiaries), as direct guarantee. If Arauco does not fulfill its obligations, the guarantors could execute the guarantees.

As of September 30, 2024, the total assets pledged as an indirect guarantee were MU.S.$ 387. In contrast to direct guarantees, indirect guarantees are given to secure obligations assumed by a third party.

Direct and indirect guarantees granted by Arauco:

DIRECT

Subsidiary

Guarantee

Assets pledged

Currency

ThU.S.$

Guarantor

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.F.

697

Directorate General of Maritime Territory and Merchant Marine

Celulosa Arauco y Constitución S.A.

Guarantee letter

Chilean pesos

126

Directorate General of Maritime Territory and Merchant Marine

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.F.

352

Railways

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.F.

13,469

Sociedad Concesionaria Autopista Costa Arauco S.A.

Celulosa Arauco y Constitución S.A.

Guarantee letter

U.S. dollar

4,920

Innergy Soluciones Energéticas S.A.

Madera Arauco S.A.

Guarantee policy

U.F.

2,278

Cermaq Chile S.A.

Investigaciones Forestales Bioforest SpA.

Guarantee letter

Chilean pesos

213

Innova Chile

Total

22,055

INDIRECT

Subsidiary

Guarantee

Assets pledged

Currency

ThU.S.$

Guarantor

Celulosa Arauco y Constitución S.A.

Full Guarantee. of Arauco North America. Inc.

U.S. dollar

210,000

Banco Itau Corpbanca - NY Branch

Arauco Celulose do Brasil S.A.

Endorsement of Arauco do Brasil S.A.

Brazilian real

23,987

Banco Safra S.A.

Arauco Celulose do Brasil S.A.

Endorsement of Arauco do Brasil S.A.

Brazilian real

64,392

Itaú Unibanco S.A.

Arauco Celulose do Brasil S.A.

Endorsement of Arauco do Brasil S.A.

Brazilian real

45,888

Banco BTG pactual S.A.

Arauco do Brasil S.A.

Endorsement of Arauco Indústria de Painéis S.A.

Brazilian real

5,641

Banco Safra S.A.

Arauco do Brasil S.A.

Endorsement of Arauco Indústria de Painéis S.A.

Brazilian real

37,561

Banco Safra S.A.

Total

387,469

103

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.10.3 Type of risk: Market risk – exchange rate

Description

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

Explanation of currency risk exposure and how this risk arises

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

Explanation of risk management objectives, policies and processes, and measurement methods

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

Sensitivity analysis considers a variation of +/- 10% of the exchange rate over the Chilean peso. This fluctuation range is considered possible given current market conditions as of the date of these interim consolidated financial statements. With all other variables at a constant rate, a U.S. dollar exchange rate variation of +/- 10% in relation to the Chilean peso would mean a change in the net income year after tax +/- 1.88% (equivalent to ThU.S.$ -/+ 6,983), and +/- 0.06% of equity (equivalent to ThU.S.$ -/+ 4,888).

Additionally, a sensitivity analysis is carried out assuming a variation of +/- 10% in the closing exchange rate on the Brazilian real, which is considered a possible range of fluctuation given the market conditions as of the date of these interim consolidated financial statements, With all the other variables constant, a variation of +/- 10% in the exchange rate of the dollar on the Brazilian real would mean a variation on the net income after tax +/- 0.27% (equivalent to ThU.S.$-/+ 1,004) and a change on the equity of +/- 1.08% (equivalent to ThU.S.$ -/+ 91,930).

104

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.10.4 Type of risk: Market risk – interest rate risk

Description

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

Explanation of interest rate risk exposure and how this risk arises

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

Explanation of risk management objectives, policies and processes, and measurement methods

Arauco completes its risk analysis by reviewing its exposure to changes in interest rates. As of September 30, 2024, 11.3% our financial debt accrues interest at variable rates. A change of +/- 10% in the interest rate is considered a possible range of fluctuation. Such market conditions would affect the income after tax at rate of +/- 0.60% (equivalent to ThU.S.$-/+ 2,221) and +/- 0.018% (equivalent to ThU.S.$-/+ 1,554) on equity.

	September 2024 ThU.S.$		Total
Fixed rate		5,620,016		88.7	%
Bonds issued		4,505,128
Bank borrowings and others		508,990
Lease liabilities		605,898
Variable rate		715,092		11.3	%
Bonds issued		-
Bank borrowings		715,092
Total		6,335,108		100.0	%

	December 2023 ThU.S.$	Total
Fixed rate	6,639,075		94.1	%
Bonds issued	4,997,038
Bank borrowings and others (*)	1,082,655
Lease liabilities	559,382
Variable rate	416,396		5.9	%
Bonds issued	-
Bank borrowings	416,396
Total	7,055,471		100.0	%

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

105

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

23.10.5 Type of risk: Market risk – price of pulp risks

Description

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

Explanation of price risk exposure and how this risk arises

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

As of September 30, 2024, revenue due to pulp sales accounted for 52.4% of total sales. Pulp prices are fixed on a monthly basis in accordance with the market. Forward contracts or other financial instruments are not used for pulp sales.

Explanation of risk management objectives, policies and processes, and measurement methods

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

Sensitivity analysis considers a variation of +/- 10% in the average pulp price, a possible fluctuation range given current market conditions at the date of the closing balance. With all other variables constant, a variation of +/- 10% in the average pulp price would mean a variation of +/- 46.1% (equivalent to ThU.S.$-/+ 171,245) on the income for the year 2023 after tax and +/- 1.4% (equivalent to ThU.S.$ -/+ 119,872) on equity.

106

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

NOTE 24. REPORTABLE SEGMENTS

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

Pulp segment

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

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

Arauco has seven plants: five in Chile, one in Argentina and one in Uruguay (50% property of Arauco), and they have a total production capacity of approximately 5.3 million tons per year. Pulp is sold in more than 45 countries, mainly in Asia and Europe.

107

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

Wood products segment

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

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

Through the joint venture Sonae Arauco, Arauco produces and sells wood panels, of the type of MDF, PB and OSB, and sawn timber, through the operation of 2 panel plants and 1 sawmill in Spain; 2 panel plants and one resin plant in Portugal; 3 panel plants in Germany and 2 panel plants in South Africa. In total, Sonae Arauco’s production capacity is approximately 1.2 million m3 of MDF, 2.4 million m3 of PB, 460,000 m3 of OSB and 70,000 m3 of sawn timber.

Including Sonae Arauco at 50%, Arauco in its mills totalize a capacity of 4.2 million m3 of MDF, 4.2 million m3 of PB and 230,000 m3 of OSB, 710,000 m3 of Plywood and 2,800,000 m3 of sawn timber.

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

With 7 sawmills in operation (6 in Chile and 1 in Argentina), the Company has a production capacity of 2.7 million m3 of sawn wood.

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

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

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

108

CELULOSA ARAUCO Y CONSTITUCION S.A. AND SUBSIDIARIES

Unaudited consolidated financial statements

September 30, 2024

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

	Pulp		Wood products			Others			Corporate			Subtotal			Elimination			Total
Nine-months period ended September 30, 2024	ThU.S.$		ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$			ThU.S.$
Revenues from sales of goods		2,456,688		2,325,535			-			-			4,782,223						4,782,223
Revenues from rendering of services		101,776		-			516			-			102,292						102,292
Revenues from ordinary activities		2,558,464		2,325,535			516			-			4,884,515						4,884,515
Revenues from transactions with reportable segments		370,287		12,626			41,665			-			424,578			(424,578	)		-
Finance income		-		-			-			52,835			52,835						52,835
Finance costs		-		-			-			(305,974	)		(305,974	)					(305,974	)
Net finance costs		-		-			-			(253,139	)		(253,139	)					(253,139	)
Depreciation and amortizations		347,262		133,927			1,777			5,893			488,859						488,859
Other income		55,173		17,036			241			333,237			405,687						405,687
Other expenses		55,772		56,412			1			25,377			137,562						137,562
Share of profit (loss) of associates and joint ventures accounted for using equity method
Associates		4,554		-			-			(9,706	)		(5,152	)					(5,152	)
Joint ventures		-		(12,908	)		-			2,147			(10,761	)					(10,761	)
Income tax expense		-		-			-			(143,491	)		(143,491	)					(143,491	)
Profit (loss) of each reportable segment		349,565		218,420			(4,950	)		(191,544	)		371,491						371,491
Geographical information on revenues
Revenue – Chilean entities		1,906,205		847,039			516			-			2,753,760						2,753,760
Revenue – Foreign entities		652,259		1,478,496			-			-			2,130,755						2,130,755
Total revenues from ordinary activities		2,558,464		2,325,535			516			-			4,884,515						4,884,515

Pulp

Wood products

Others

Corporate

Subtotal

Elimination

Total

Nine-months period ended September 30, 2024

ThU.S.$

Amounts of additions to non-current assets

Acquisition of property, plant and equipment and biological assets

613,123

158,205

813

10,359

782,500

Acquisition in subsidiaries, joint operations and contribution of investments in associates and joint venture

Filing Compare · ARAUCO & CONSTITUTION PULP INC