Empresas Copec's Corporate Magazine No. 111

TIMES OF RESILIENCE

No.111

business resilience for today's uncertainty

women in command the road to a purpose with social impact when the community plays a leading role

innovation as key to address the climate crisis

No.111

in increasingly volatile, uncertain and complex environments, it is necessary for companies to adapt to the continuous changes that impact their business strategy. we are going through times in which resilience becomes one of the key tools to face this new world, incorporating innovation, flexibility and prudence in their work.

december 2022 / nO . 111

the road to a purpose with social impact

abastible recently launched its new purpose, inspired by the values of the small and medium-sized companies that are part of its business model.

pushing hard towards clean energies

copec's subsidiary, flux solar, opened the first of 23 solar plants, consolidating its entry into the renewable distributed electricity generation market.

innovation as key to address the climate crisis

recognition to its corporate governance

empresas copec obtained, for the fourth consecutive year, the "voice of the market" award, being recognized as one of the three chilean companies traded on the stock exchange with the best evaluation in this area.

eduardo navarro, ceo of empresas copec, reflects on the relevance of esg factors in organizations, considering the role they play in society and the various challenges they face today.

alejandro krell, senior partner at mckinsey & company chile, shares his views on how companies should address a number of global challenges such as recession, inflation and geopolitical tensions, among others.

women in command

six female employees of empresas copec subsidiaries share in a virtual conversation their experiences in jobs that have historically been performed by men.

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arauco grows in mexico

the subsidiary is preparing to start work on the construction of a new production line for mdf boards in zitácuaro.

leading the evolution in convenience stores

the international seminar held by fundación copec-uc brought together experts to discuss how to address this situation from a global perspective and with a focus on solutions. read

arauco has projects in brazil and argentina that are based on dialogue with the inhabitants of the areas in which it operates and that seek to contribute to the integrated development of the territories.

a sustainable rally

chile's largest motor racing series stands out not only for its spectacular display, but also for the positive impact it generates in the communities.

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driving sustainable nutrition

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arcoprime is undergoing several advances and transformations, in which technology plays a key role, and which have allowed it to increase its customer service capacity and improve service levels for its customers.

empresas copec's new subsidiary, nutrisco, aims to consolidate the group's food business, taking them beyond seafood products.

summing it up when the community plays a leading role news

building a company today business resilience for today's uncertainty empresas copec's results as of september of this year show a profit of mmus$ 1,475 and an ebitda of mmus$ 2,951, driven by the good performance of the pulp, wood and energy businesses.

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during this period, empresas copec and its subsidiaries achieved important milestones in sustainability, innovation and business.

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BUILDING A COMPANY TODAY

ESG (Environmental, Social and Governance) initiatives have become a strategic imperative for every organization. Not only are investors and regulators watching closely in this perspective, but also, and increasingly, consumers, citizens and individuals are choosing or questioning companies depending on their authentic behavior in these areas. By this I mean consistency between what is said and what is done. This is even more relevant today, when one of the great challenges facing the business world, and institutions in general, is to regain trust.

Last November, COP27 was held in Egypt. This year, the Conference of the Parties was called "Africa's COP" because of its focus on agreeing measures on "adaptation" and "loss and damage" for those countries most vulnerable to the effects of climate change. What remained as a task is the design and implementation of a fund to finance the management of impacts in various countries, including Chile, Brazil, Argentina, Uruguay and Mexico, where we have a presence.

The main objective of limiting the temperature increase to 1.5 degrees Celsius by 2030 remained firm, which will require a joint effort by the private and public sectors and civil society as a whole.

For this reason, Empresas Copec and its global ecosystem, made up of more than one hundred subsidiaries and associates, continues to make progress. As a multinational financial holding

in the photo: Eduardo Navarro CEO at Empresas Copec.

company, we are strengthening our commitment in these matters, which, among other things, involves setting ambitious goals and improving "reportability" standards. We also understand that the Company's investments and operations are linked to natural resources and energy, essential areas of economic activity for the future we seek as a society.

To date, the Company has made significant achievements in this area. In 2020, ARAUCO certified its carbon neutrality, in accordance with the guidelines of the Neutrality Protocol drawn up by Deloitte. According to the latest studies, the subsidiary absorbs a net of more than seven million tons of CO2e per year. Tremendous figure, tremendous contribution.

In fiscal year 2022, ARAUCO took another step forward in its commitment with the environment. At COP27 it announced that it will manage its operation to become a Nature Net Positive company, in accordance with the parameters of the British Standards Institution. Its strategy was named A, B, C [acronym of Agua, Biodiversidad, Carbón in Spanish], for its commitment to water, biodiversity and carbon issues.

On the other hand, Copec continues to move forward, with clear vocation and conviction, towards new energies. In fact, as part of its Climate Change Declaration, the company announced that it

has achieved carbon neutrality in its network of service stations in Chile. In addition, it was awarded 10 of the 13 electric terminals tendered for public transport in Greater Santiago, where its contribution to the electrification of mobility in this segment will reach 60% of the fleet, and it will also build and energize the first one in regions, to be located in Antofagasta.

Meanwhile, the subsidiary Flux Solar launched a program for the generation of renewable energies through a network of 23 PMGD

(Small Means of Distributed Generation) plants. The facilities will be located between the regions of Tarapacá and Biobío, will involve an investment of US$146 million and will provide an installed capacity of 146 MWp. The first of these, located in Los Ángeles, Biobío Region, is already injecting energy.

A reflection of the efforts we are making in these areas is the fact that ARAUCO and Copec were recently included among the five highest-performing companies in the report "Radiography 2022: Corporate vulnerability to climate change of the 100 largest companies in Chile", conducted by SCX and Deloitte.

We are also working to continue improving our performance in the social dimension, particularly in community impact, and in issues as wide ranging as diversity and inclusion. An example of this last point is the inspiring story we portray in this issue of the magazine of six female employees who today hold positions that, historically, were only held by men.

All these advances are directly related to the way we believe we should build a company today. In the same vein, we are making important efforts to strengthen our governance, highlighting issues such as corporate leadership, the ability to manage risks and, of course, business ethics.

ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) INITIATIVES HAVE BECOME A STRATEGIC IMPERATIVE FOR EVERY ORGANIZATION. NOT ONLY ARE INVESTORS AND REGULATORS WATCHING CLOSELY IN THIS PERSPECTIVE, BUT ALSO, AND INCREASINGLY, CONSUMERS, CITIZENS AND INDIVIDUALS.

FACING THE FUTURE, WE NEED COMPANIES, BRANDS AND LEADERS WILLING TO ACCELERATE TRANSFORMATION BASED ON PURPOSE, CONNECTING WITH ALL THEIR STAKEHOLDERS FROM VALUES. THE PLANET AND THE SOCIETY REQUIRE IT AND THE NEW GENERATIONS DEMAND IT. BUILDING A COMPANY TODAY MEANS PROMOTING ORGANIZATIONS WITH A TRANSCENDENT MEANING, COMPANIES WITH PURPOSE.

In this sense, it is a source of pride that Empresas Copec received a few days ago, and for the fourth consecutive year, the award "La Voz del Mercado", being highlighted among the three companies, of all the most traded companies in the Stock Exchange, for its governance, specifically in business strategy, control environment, transparency, fair and equal treatment and sustainability management.

The recognition reinforces our conviction that governance is a cornerstone to ensure that the ESG model is at the core of the business strategies of Empresas Copec and all its subsidiaries and associates at a global level.

We still have a lot to do, but we believe that we are moving in the right direction, judging by the time and resources we are dedicating to these issues, an effort that allows us to make a better company and, thus, respond to the demands of an entire society.

As 2022 draws to a close, one conclusion remains: facing the future, we need companies, brands and leaders willing to accelerate transformation based on purpose, connecting with all their stakeholders from values. The planet and the society require it and the new generations demand it. Building a company today means promoting organizations with a transcendent meaning, companies with purpose.

TRULY RESILIENT ORGANIZATIONS ABSORB SHOCKS BETTER THAN THEIR PEERS AND THEN THRIVE IN AN ADVERSE ENVIRONMENT.

general interest

BUSINESS RESILIENCE FOR TODAY'S UNCERTAINTY

By Alejandro Krell.

Senior Partner at McKinsey & Company Chile. Since joining the firm in 1998, he has advised numerous companies on their main strategic challenges in order to improve their competitive position, performance and profitability. He currently leads McKinsey's Strategy and Corporate Finance practice in Latin America. In addition, he has vast experience in the elaboration of strategies for the development of clean energy, green hydrogen and decarbonization in Chile. Alejandro holds a degree in Business Administration from Universidad Católica de Chile and an MBA from Harvard University.

Most companies have never been tested in the way they are being tested today. They did face the global financial crisis, Brexit and the COVID-19 pandemic among other challenges, at different times. Each crisis required ingenuity, courage and determination. Many business leaders overcame these challenges exceptionally well. But today they face a unique confluence of negative shocks, combining recession, inflation, rising financing costs, war and geopolitical tensions, partial reversal of globalization and supply chain disruptions, all simultaneously.

This unusual confluence of factors means that responding in the same way as in previous crises will probably not be enough. But there are some important lessons to be learned from past experiences, and from which to build. An investigation by McKinsey into the 2007-2008 financial crisis shows that resilient companies not only perform better than their peers during the recession and recovery, but also accelerate into the new reality, leaving their peers lagging behind.

The research showed that companies that win through resilience do three things well in a disruptive environment:

• They make faster and more decisive moves in productivity improvements, preserving the capability for growth.

• Create more operational and financial optionality in their balance sheets by adjusting leverage or reducing and variabilizing fixed costs.

• They are quick to act on divestitures in the slowdown phase of the disruption and on acquisitions at the inflection point of the recovery.

Leading companies not only do these three things well, they do them with urgency and commitment. They react in the downturn when it matters most and, therefore, can open an early lead compared to their peers, which can be significantly extended during the recovery and growth period.

The periods of recovery and growth that follow recessions are often longer than the recession itself, so leading companies that are well positioned will be able to outperform others over the long term. The best-performing companies do not wait for the cycle to pass: they act decisively in the face of uncertainty.

a decisive moment for leadership

Resilience is the ability to cope with adversity and shocks, recover quickly from effects that impact their performance, and adapt and speed up to grow at an accelerated rate. Consequently, truly resilient organizations absorb shocks better than their peers and then thrive in an adverse environment. They play well on the defensive as well as the offensive.

Undoubtedly, this is a critical moment that will shape and test a company's leadership. What do the leaders of these organizations do in the face of adversity? These are some of the practices that some companies have used recently:

• Prepare for a recession and, at the same time, to come out of it. Recessions can be shallow and brief; companies can accelerate through the recession. This is essential: resilient organizations open up an early advantage, however small, compared to their peers. This advantage can be extended during the next period of recovery and growth.

• Use scenarios instead of forecasts. Forecasts have failed to adequately capture many key developments in recent decades, including slowing of globalization, supply chain disruption and the return of inflation. Learning

to plan with scenarios and prepare for each possible scenario before it occurs becomes critical to gaining agility.

• Develop a resilience agenda that addresses urgent short-term but also long-term issues. For example,

in the photo: Alejandro Krell Senior Partner at McKinsey & Company Chile.

Companies that win through resilience do three things well in a disruptive environment:

address supply chain disruptions that impact the short term, but also review the business portfolio in light of geopolitical changes that impact the long term.

• Focus on resilient growth by reviewing their competitive position and finding strategic opportunities in the current environment. For instance, acquisitions or the creation of new businesses in areas that are likely to become more important, such as sustainability.

Make quick and decisive moves in productivity improvements.

exemplary moves

Leading companies are already making resilience a reality, defending their traditional business while accelerating growth by looking beyond the economic cycle. Here are examples of what they have done in the recent past:

Restructure the balance sheet. A provider in the automotive sector wanted to achieve a certain credit rating in order to increase its borrowing capacity in anticipation of a worst-case scenario that would cause financial stress. By presenting the new capital structure to investors and rating

React in recession when it matters most, generating:

Create more operational and financial optionality on their balance sheets.

Act quickly on divestitures in the slowdown phase of disruption.

An early advantage compared to their peers, which can be significantly amplified during the recovery and growth period.

The best-performing companies do not wait for the cycle to end: they act decisively in the face of uncertainty.

agencies, the company was able to raise an additional €3 billion to implement a five-year strategy.

Reconfigure the supply chain. To achieve operational resilience, a global electronics manufacturer with worldwide production and an extended supply base assessed the relative vulnerability of 5,000 unique combinations of providers and plants. The company identified about 100 high-risk suppliers and then discovered that 25% of its spending was concentrated in this segment. By reconfiguring the supplier network, it reduced spending exposed to higher risk of disruption by more than 40%.

Resilience and sustainability. A global mining company identified strategic initiatives to create a roadmap to "net-zero" emissions across its entire structure. Detailed

THE BEST-PERFORMING COMPANIES DO NOT WAIT FOR THE CYCLE TO PASS: THEY ACT DECISIVELY IN THE FACE OF UNCERTAINTY.

decarbonization plans were drawn up for each site, with targets for emissions reductions that are above the industry. On average, this would also allow reductions in relevant operating expenses achieved with investments that have a positive net present value. In addition, to position itself for growth with a long-term view, the company identified a series of growth opportunities associated with the demand for more sustainable products, that is expected to accelerate, both in its current business (minerals with a lower carbon footprint) and in areas adjacent to the businesses where they operate. To balance these objectives with the greater concern for the cash position, investments were made with strict criteria of investing additional cash only as key milestones were met.

Planning scenarios with advanced analytics. A leading automotive company created several hypothetical scenarios, e.g., a technology disruption and a market collapse, and then assessed the potential impact on the business and the resilience levers that would best mitigate that impact. The analysis suggested that up to 60% of lost sales could be mitigated. This led to the decision to diversify geographically and reduce the risk of dependence on single sites, establish some early warning mechanisms and reduce the intensity of fixed costs in some production locations.

Anticipate impacts with high probability of occurrence. A service company was facing rising prices from providers. To address cost pressures strategically, the company created an "inflation neuralgic center". It identified spending priorities, anticipated

and quantified inflation risks, created live dashboards showing the impact of inflation, and established a proactive process and a set of levers to manage inflationary pressures. This helped the company understand the magnitude of inflationary risks and work on managing providers ahead of time to mitigate the impact.

Turning a crisis into a growth opportunity. A global pharmaceutical company faced recent disruptions in healthcare supply chains, services and access to healthcare professionals. The company designed a home delivery system to help patients with rare diseases continue to receive treatment in the safety of their own homes. In addition, it partnered with a startup to provide patients with physical therapy programs through virtual channels and other additional services. These innovations are now part of its growth strategy.

the next frontier of resilience

Companies face a deeply unstable economy, with potentially existential risks for those who enter the crisis with weaknesses in their balance sheet and business model. Protection is imperative, but so is addressing the growth opportunities that arise in changing contexts. Exceptional organizations become much more resilient by answering the questions of where to strengthen defenses and where to bet on the future. The resilience framework described here can help organizations understand the gaps and identify opportunities for growth in even the most complex environments.

BECOME MUCH MORE RESILIENT BY ANSWERING THE QUESTIONS OF WHERE TO STRENGTHEN DEFENSES AND WHERE TO BET ON THE FUTURE.

abastible:

THE ROAD TO A PURPOSE WITH SOCIAL IMPACT

After a long and deep work, Abastible recently launched its new shared purpose, inspired by the values of the small and mediumsized companies that have been part of its business model.

Its CEO, Joaquín Cruz, shares his experience leading this process, stating that this is the most important project of his professional life.

"Whatever the purpose of a company, its implementation implies a business change, a significant cultural transformation of all those who are part of the company, starting with its managers," says Joaquín Cruz, CEO at Abastible.

A year and a half ago, this leading company in the distribution of liquefied gas in our country took on the challenge of rethinking how they wanted to be recognized and how they wanted to contribute to society. It was a profound work that, according to the executive, stems from the conviction that companies play an important role and, therefore, must actively collaborate to achieve a better society.

For Cruz, it all starts from the dichotomy of being a leading and positively recognized company in terms of its brand and the service it provides to its customers, while at the same time being part of a society that is dissatisfied in many areas, and shows low levels of trust in the business world.

Since the monetarist theory of Milton Friedman, one of the most important economists of the second half of the 20th

century, which refers to profit maximization, organizations have been taking on new principles and changes related to their social role. Thus, for example, the concepts of corporate social responsibility, sustainability and ESG (Environmental, Social and Governance) criteria have emerged, which have become the benchmark for socially responsible investment.

In this context, the CEO emphasizes that the shared purpose has been, until now, the last step of this business role, and that it is only possible to achieve it if there is a sincere motivation and conviction of all those who make up the company, of its value and relevance.

"This is by far the most important project of my professional life," says Joaquín Cruz, who has more than 30 years of experience leading companies. He shared these words and enthusiasm with the Abastible team during the launch, which took place in November of this year, and which shows the great impact and challenge of carrying out a good shared purpose.

in the photo: Joaquín Cruz

CEO at Abastible, during the launch of the company's purpose.

from the inside with the people general interest with first and last name index worldwide summing it

the reason for existing

What is shared purpose? For Cruz, it is the reason for a company's existence, beyond the product or service it delivers. In other words, it is why society should want the company to exist and, therefore, it should be something it values and validates. "It must be like the southern star, which will always tell you which way to go."

It must also meet certain requirements, such as helping to solve a problem that is relevant to society, be a relevant topic for the company and be rooted in the culture and motivation of the people who are part of it. "A purpose must be something heroic, inspiring and must mobilize people. It is not an objective that can be achieved by the company or organization alone. It needs collaborative work; it must generate community, invite and motivate other companies, authorities, players and society to follow it," he says.

For Abastible, this guiding star and inspiration is embodied in the country's small and medium-sized companies, which are the basis of its business model.

"A relevant feature of our company and one that has become a differentiating value is that everything we do goes through an SME. We have a network of more than 1,200 distributors throughout Chile and we have many stories of families that have grown and educated their children with these entrepreneurships", says the executive.

What is Abastible's dream? To contribute to a more united, connected, collaborative and peaceful society, where small and medium-

in the photo: Launching of Abastible Purpose.

It must help the company to solve problems relevant to society.

Be part of the culture of the place and build community.

Motivate and mobilize people.

Be heroic and inspiring.

SHARED

PURPOSE:

The reason for the existence of a company, beyond the product or service it delivers.

sized enterprises become an engine of social and economic development. A path that aims to "empower the entrepreneurial spirit". This is the purpose, which will begin to be implemented and communicated as of January 2023.

For the executive, the challenge today is to make it work, and for this Abastible has to soak up the entrepreneurial spirit of SMEs. This means to be constantly looking for new opportunities; innovating and experimenting; working in teams and collaborating; being resilient, optimistic and agile at the same time.

Finally, the most difficult and important part of this process is to understand the scope and impact that a purpose has on the company's activities, from the customers to the products offered, the solutions provided, the alliances made, the new employees hired, the training provided, the way they are organized, the investments made and the decisions taken. "It involves a complete cultural transformation; a change focused on people and on the dream of contributing to a better society," the executive concludes.

IN OTHER WORDS,

WHAT IS

PURPOSE? FOR CRUZ, IT IS THE REASON FOR A COMPANY'S EXISTENCE, BEYOND THE PRODUCT OR SERVICE IT DELIVERS.

IT IS

WHY SOCIETY SHOULD WANT THE COMPANY TO EXIST.

purpose: to empower the entrepreneurial spirit

Vision: To be a company that is recognized, valued and loved for the contribution it makes to the prosperity of people and society, by empowering the entrepreneurial spirit and supporting small and medium-sized companies so that they become an engine of social and economic development.

Mission: To put people and SMEs at the center of our work, providing them with energy and support for their projects and ventures. To stimulate awareness to create a social movement, and thus, together with the call to public and private institutions, support the strengthening of SMEs in all societies and countries in which we operate.

WHAT IS ABASTIBLE'S DREAM? TO CONTRIBUTE TO A MORE UNITED, CONNECTED, COLLABORATIVE AND PEACEFUL SOCIETY, WHERE SMALL AND MEDIUM-SIZED ENTERPRISES BECOME AN ENGINE OF SOCIAL AND ECONOMIC DEVELOPMENT. A PATH THAT AIMS TO "EMPOWER THE ENTREPRENEURIAL SPIRIT". THIS IS THE PURPOSE.

A

OF

The study analyzes the perceptions of nearly 500 directors, analysts, academics and other stakeholders regarding five pillars: business strategy, control environment, transparency, fair and equal treatment, and sustainability management.

In addition to the Company, the banks BCI and Santander were also awarded. Cencosud received a special award for its outstanding improvement in this area.

According to the study, the market kept a good evaluation in Corporate Governance and maintained its positive perception in Business Strategy (77%, the same as in 2021) and in Control Environment (79%, the same figure as in the previous period), understood as the

business management capacity and as the effectiveness and independence of internal supervision and control processes, respectively.

Meanwhile, the Access to Information and Equal Treatment of Shareholders pillars increased by two and six points, respectively, reaching 73% and 75% positive evaluations. Finally, satisfaction in the Sustainability Management pillar also rose slightly, from 71% in 2021 to 72% in 2022.

in the photo: Eduardo Navarro, CEO of Empresas Copec, together with Macarena Navarrete, Senior Partner of EY Chile.

“THIS

Regarding this award, Eduardo Navarro, CEO of Empresas Copec, commented: "First of all, I would like to thank EY, the Santiago Stock Exchange and the Chilean Institute of Directors for this important award, which fills us with pride and, at the same time, encourages us to continue improving and promoting best practices in Corporate Governance, a key pillar in our sustainability strategy.

500

ENVIRONMENT

BUSINESS STRATEGY

At Empresas Copec we think in decades, always in the long term, and we understand that a company is only sustainable if ESG issues are at the center of all its decisions and intrinsic to the business. This is also essential to contribute to regaining trust, one of the great challenges facing companies, both locally and globally.

IN ADDITION TO THE COMPANY, THE BANKS BCI AND SANTANDER WERE ALSO AWARDED. CENCOSUD RECEIVED A SPECIAL AWARD FOR ITS OUTSTANDING IMPROVEMENT IN THIS AREA. from the inside with the people general interest with first and last name index worldwide summing it up news

Senior Partner of EY Chile.

How should a board address ESG issues?

The last few years have made it clear that companies must deepen their social role and be aligned with the context of the country. The results of the survey show that an important part of the respondents (51%) consider that the highest corporate body, the board of directors, is in tune with Chile's reality. And there is a portion, although smaller (38%), that thinks that they are promoting the necessary actions to address the current scenario that considers the post-pandemic era, the economic slowdown, the exit plebiscite, the discussion on the new Constitution (mechanisms and voting) and the social demands and citizen discontent that have been expressed since October 18, 2019.

Although there is a long way to go, we have seen how many companies are incorporating diverse perspectives and skills to their boards, which allows them to have a broader and more sensitive view of society and environmental issues. Additionally, in some cases, sustainability officers are reporting to CEOs and making presentations to directors, which also allows for greater awareness of the company's actions by its leaders and, therefore, brings this issue to the table for discussion at the highest level.

In your opinion, what are the main challenges faced by boards of directors today?

The effort to have quality and measurable information is also a way to achieve better results and face challenges. A step further is taken by those that have realized the need to make sustainability a key part of their strategy and management indicators, something that, by the way, is a recurring point among the respondents' comments. Another very relevant factor is to include this aspect in risk supervision, a fundamental task of the board of directors. Failure to address, plan and manage potential environmental, social and corporate governance risks can lead to major business problems. On the contrary, addressing them in a timely manner can lead to significant opportunities for companies and their stakeholders.

macarena navarrete

"the last few years have made it clear that companies must deepen their social role and be aligned with the context of the country."

from the inside with the people general interest with first and last name index worldwide summing it up news

SIX FEMALE EMPLOYEES TALK ABOUT THEIR EXPERIENCE IN POSITIONS THAT HAVE HISTORICALLY

BEEN HELD ONLY BY MEN.

WOMEN IN COMMAND

In November, a new version of the round tables organized by Empresas Copec was held, with the participation of members of different subsidiaries to reflect on current issues of interest.

On this occasion, female employees at subsidiaries of Empresas Copec, who perform functions that historically have been performed exclusively by men, shared their experience and the main challenges they have faced during their careers.

with first and last name

_ from the inside with the people

For Empresas Copec and its subsidiaries, promoting female talent, gender equity, diversity and inclusion is a priority. Along these lines, policies, programs and initiatives have been implemented to promote the presence of women in different types of functions, including those that have historically been performed by male workers.

An example of this are the six female employees who participated in this discussion: Claudia Madariaga, head of Bay and Raw Materials Supply at Orizon; Aurelia Salas, head of Abastible's Lenga Plant; Yalesky Medina, head of Production Shift at ARAUCO's Nueva Aldea Pulp Plant; Rosa Brito, Copec Service Station attendant; Mónica Huaman, Mining Truck operator at Mina Justa; and Flor Garcés, operator at Terpel Lubricants' Plant.

The meeting was hosted by Francisca Riveros, Communications Director of Empresas Copec.

—

six women, six stories

Conversation video summary.

country and I saw that I had no job stability, so I came to Chile in search of a job to bring my son, a place where they offered me stability, and here, thanks to God, thanks to Copec and my boss, I achieved all that".

In August 2022, after five years of making various arrangements to bring Dayber to Chile, he arrived in Chile. Rosa gets emotional when she remembers everything she has lived through. "They were very difficult times, that's why I am so grateful to Copec".

The Copec service station located on San Juan Avenue in Machalí does not go unnoticed, as only women work there. One of them is Rosa Brito, an island attendant for three and a half years. This 30-year-old Venezuelan arrived in Chile four years ago and, as she confesses, she never imagined that she would work in this field. "In my country I was a criminal investigator, so I didn't even know how to inflate a tire. But being at Copec I have learned a lot of things that perhaps for many people are simple, but for me they have been of great learning and growth, and that will be of great use to me in the future." But for Rosa the most important thing that this job has given her is stability in all areas and, mainly, in the family. When she left her country, first for Peru, she had to leave her son Dayber, then only seven years old, in Venezuela. "Because I was a foreigner, I didn't have as many job opportunities. I had to work informally on the street selling lemonade. I began to see that it was very difficult to take my son to that

in the photo: Rosa Brito

Copec Service Station attendant.

THE PARTICIPANTS AGREE THAT JOBS SHOULD NOT BE GENDERED.

some companies closed their doors to her because she was a woman and a migrant. They told me: 'I really like your résumé, but the truth is that a woman who has a daughter is going to ask me for permission because she got sick, so no'. And I felt a little bad, but the encouragement continued, I had to continue searching and achieving the goals I had set for myself. Then, little by little, the path was clear and I arrived first at a gas company, and then at ARAUCO. Here I am in a management position and have to manage a team of people, so I have taken the time to get to know each one of them. It has been a long process, not so easy, but always with perseverance, being very loyal to the workers and showing them that I don't know everything, but that I have the best will and disposition to make this work."

Aurelia Salas is the head of Abastible's Lenga Plant, located in Concepción, becoming the first woman to hold this position in the company in 2020. Subsequently, other female collaborators have joined the company to lead the Peñón and Concón plants, in the regions of Coquimbo and Valparaíso, respectively. After working 15 years in the food industry, Aurelia came to Abastible to take on the management of a team of mostly male operators. "I changed cities, I changed industries, I changed companies, and it has been a very pleasant experience. At least in Chile, people think that energy is a purely masculine field, but we are proving that this is not the case. The reception from the guys at the filling desk and the plant was very warm from the beginning, I think that with my arrival they were looking to see what it was going to be like to have a female boss, what kind of decisions I was going to make, if it was going to cost me more than the previous boss or not. I think the rest of the women in this conversation must have gone through something similar."

Yalesky Medina, head of Production Shift at ARAUCO's Nueva Aldea Pulp Plant, says she understands perfectly what Rosa is talking about. She is Venezuelan, mother of 11-yearold Ariany, whom she also had to leave her country, migrate alone to Chile and start from scratch. "It was not a situation that I sought, but one that I was forced into. What I can say is that with desire, strength, faith, dedication and love, everything is possible. There are no limits, always doing things right".

In her case, she managed to bring her daughter Ariany after one year and three months. The chemical engineer has been working at ARAUCO for almost three years at the Nueva Aldea pulp mill in Chillán, in a team made up of production assistant managers, superintendents, operations engineers, shift supervisors and operators. She says that before she joined ARAUCO,

Head of Production Shift at ARAUCO's Nueva Aldea Pulp Plant.

in the photo: Yalesky Medina

from

This is confirmed by Claudia Madariaga, head of Bay and Raw Materials Supply at Orizon, who has been working at the Coquimbo plant for 20 years, the same age as her eldest daughter, since before it became part of Orizon. She has just assumed this position after four years as head of production at the Fishmeal Plant, where all her subordinates were men. "I had a hard time positioning myself. Little by little I grew, making progress in the bay and artisanal sector. Being a women is hard, but as you do your job well, you end up being recognized." Claudia says that the day she told her team that she was no longer going to be her boss to take on a new position at Orizon, everyone was very sorry to see her go. "They gave me a round of applause, it was very emotional."

Flor Garcés, who works as an operator at the Terpel Lubricants Plant in Cartagena de Indias, Colombia, says that it was not easy for her to reach this position, for which she studied. "I knocked on many doors and all the openings that came up were for males, they only wanted male operators. Until the job opening came up here at Terpel. I remember coming to the interview and seeing about 50 men, with me being the only woman. Thank God I got the job and I felt super proud from the first day I arrived here. It has not been easy, I am still in the process of adapting with my colleagues, because I am the only female operator here, so they are learning from me and I from them. It has been a rewarding experience, because when I arrived, they questioned how I

the inside with the people

in

extracted from the open pit, the main mining site, to areas such as dumps, crushers and dams.

Monica reached this position thanks to a Youth Job Training program for women, promoted by Marcobre, which consisted of almost nine months of theoretical and practical training. Thanks to this program, the participants became more self-confident. "It

was going to do the job, whether I was going to be able to do it or not. And so far, I've shown them that I have and they've been surprised, and they've realized that it's a job that everyone can do, regardless of gender."

Monica Huaman works in the Ica region, just over 300 kilometers south of Lima. She is the operator of a Caterpillar 793D mining truck at Mina Justa. Their job is to move the material

the photo: Aurelia Salas Head of Abastible's Lenga Plant.

beyond gender

The participants agree that jobs should not be gendered, as they are an example that women can perform tasks that, historically, have been performed exclusively by men.

So states Yalesky Medina: "In this society, we must take on the role that any man plays, because we are capable of thinking, discerning and deciding on circumstances of importance and transcendence, and I believe that each one of us is demonstrating this. But we must not forget that each person, regardless of gender, has something special to contribute to society. Life is a complement

and the work is carried out between men and women. We are not competing and we must understand that if we want to live in a more balanced, empathetic and harmonious society. If we seek equity, it seems to me the healthiest thing to do."

Aurelia Salas agrees: "I agree with Yalesky. Sometimes people ask you in what things we women are better than men. And the truth is that I don't feel more capable than them, but I think we share the desire, the attitude. In fact, my predecessor, a man, is an excellent leader, a great professional and of tremendous human quality."

Monica Huaman adds: "I believe I can be better today, but I also believe I can be much better tomorrow. So, I believe that every day, being a man or a woman, we can do a much better job. Competition is no longer related to gender, but to yourself."

Claudia Madariaga adds: "I would like to see that all of what we have achieved will lead to a transformation for a more inclusive labor, so that we no longer have to see whether you are a man or a woman for any position, whatever it may be. That our work stops being a novelty, that it becomes something common, equal, where we can all reach and access because of

our abilities, our work, talent and daily effort."

Rosa Brito says: "While it is true that we are seeking gender equity, we must recognize that in terms of physical labor we are not as strong as men. But intellectually we are equal. And in this sense, I see that Copec plays a very important role in gender equity and the support has been 100%, because there are many women hired to provide services in positions that were previously only held by men."

Flor Garcés adds: "It seems to me that inclusion is determined by tolerance, accepting each person regardless of their gender, but rather by their qualities and attitude. That in the future, job vacancies will look for certain characteristics, regardless of gender, that take into account our studies, our commitment, those qualities that make us stand out as people. I think this is the most important thing for inclusion to be taken into account in the labor market."

in the photo: Claudia Madariaga Head of Bay and Raw Materials Supply at Orizon.

According to the experience of the participants, the companies play a fundamental role in empowering female talent and they highlight the initiatives that their respective subsidiaries carry out for this purpose.

it plays a very important role in promoting gender equity, because it also drives other organizations".

For her part, Flor Garcés says that Colombia is lagging behind in terms of gender equity. "But I believe that at Terpel the situation is very different. Here we are promoting several inclusion programs and many women work in this company." In fact, 35% of Terpel's team is made up of talented women.

In this regard, Yalesky Medina comments: "I see that at ARAUCO, they are doing a great job of including women in important decisionmaking positions and in others that have historically been held by men. An example of this is that there are more and more women in the pulp industry. I think that the company is an influential entity and, in this sense,

Mónica Huaman believes that Peru is currently undergoing a transformation in this area. "This position of women in both operational and senior management positions is being built, and in the mining industry there are more and more women, and that excites me very much." In Marcobre's case, Monica points out that she was appointed to this position thanks to a program to promote female talent. "There would be very little chance of getting to where I am without these kinds of initiatives. So, I hope that more companies come on board with these programs that are committed to women's leadership."

At Abastible, says Aurelia Salas, "there is a positive development of female talent and, in some way, many internal initiatives are also promoted. So, I believe that the company is on the right track, in fact, currently 30% of Abastible's plant managers are women."

Claudia Madariaga adds that Orizon has made great progress in this area. "Mainly in the Biobío Region, where there is an important female workforce working in the process lines and also along the entire production chain. There is also an important presence of women in more executive positions; there are female managers, assistant managers".

Claudia also stresses the importance of companies being flexible with those who have children, promoting a balance between work and family life. "I highlight the support

in the photo: Flor Garcés

Operator at Terpel Lubricants' Plant.

of my management in that aspect.

I had two moments when I needed that help and I got it. When Catalina, my oldest daughter, was five years old, she fell and her health was complicated. I gave notice and was told to take care of her and I had all the opportunities to do so. Last year I was also in a complex situation when Catalina had another health problem.

I am divorced, my family lives in Copiapó and I have a limited support network here in Coquimbo, so I asked for some vacation days to organize myself and be able to be with my daughter in this process, which were granted by my boss. In addition, at the end of the year, during a visit to the plant, the Operations Manager asked me about my daughter's health condition, gave me his support and offered me flexibility in my working day, saying: 'Claudia, organize your time for what you need with your daughter.' So it is also very gratifying to realize that, just as you give a lot of time to your work, when there is a need, I have had a helping hand."

Rosa Brito adds: "I don't know if this is the case in all companies, but I have a boss who is an excellent person, she is also a mother and I think that's why she understands us so well. She understands that there is also the role of mother, of head of household, therefore, she has always left the door open for anything we need, always looking for a way to accommodate our schedule. Since I spent so much time without sharing with Dayber, today I want to be with him in everything, and she understands that. For example, she arranged my schedule to be free on Halloween and go trick or treat with him to pick up candy."

POLICIES, PROGRAMS AND INITIATIVES THAT SEEK TO ENHANCE THE PRESENCE OF WOMEN IN DIFFERENT TYPES OF FUNCTIONS.

Yalesky Medina agrees and says that ARAUCO has given her all the tools she needs to make her work and family life compatible. "I am a single mother and at some point my daughter was presented with a health emergency. My boss immediately told me to be calm, that he would take care of it, he helped me in the search for a solution, so these are things that make you feel happy, the fact that your boss cares about the family part of the workers generates a lot of gratitude and commitment to the organization."

in the photo: Mónica Huaman Mining Truck operator at Mina Justa.

THE COMPANY AND ITS SUBSIDIARIES HAVE IMPLEMENTED

"We have to leave a legacy to the new generations, which we are building day by day with good practices, regardless of the position we hold, and from where we can motivate other women. Growing in the workplace depends on you. You have to push yourself and give your best. Conformism does not belong here, we are all empowered and strong women who can excel and always go further."

mónica huaman

Mining Truck Operator at Mina Justa.

"They should take advantage of the new opportunities that companies are giving women today. Those of us who are working in positions that were previously occupied only by men must commit ourselves to doing it well so that we can show all companies, large and small, that they should not be afraid to hire women, because we can do it very well.

I believe it is our responsibility to give 100% so that these opportunities continue to be provided. I would also like to leave them with the idea that gender is not a limiting factor in demonstrating our capabilities and that we are capable of doing whatever we set our minds to, regardless of whether we are men or women."

rosa brito Copec Service Station Attendant.

"My message is the same one I teach my daughter: the value of discipline, that wherever I am I always leave a mark. There are no impossibilities, everything we want we can achieve with perseverance and dedication, without losing focus or goals. That is key. I believe that we women must leave a legacy that is not only about having reached a good position, but rather about having a different, human, empathetic, joyful and disciplined leadership, discovering the abilities of each person and strengthening them, this is contagious and, in some way, helps to have a better world."

what message would you give to other women working or entering the workforce in the future?

yalesky medina Head of Production Shift at ARAUCO's Nueva Aldea Pulp Plant.

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"I hope that our work will open the door to other women. That is why in the team where I am, I am committed to continue developing and promoting female talent in my company. And I believe that this commitment and respect for diversity, equity and respect for people, regardless of their gender, must be instilled in all generations, current and future".

aurelia salas

Head of Abastible's Lenga Plant.

"Always, a job well done, even if you make mistakes, if you do it honestly and show the desire and motivation that you have, will pave the way and will eventually make them recognize you and believe in you."

"To all women in the industry, I would tell them to believe in themselves, in their knowledge and in all that we can contribute to the company's results from any role, beyond gender. It is up to us to perform well and contribute to eliminate biases so that more women can continue to learn from this wonderful business. Yes we can!"

flor garcés Operator at Terpel Lubricants' Plant.

claudia madariaga Head of Bay and Raw Materials Supply of Orizon.

from the inside with the people general interest with first and last name index worldwide summing it up

INNOVATION AS KEY TO ADDRESSING THE CLIMATE CRISIS

The seminar "Strategies to face the climate crisis", organized by the Copec-UC Foundation, brought together national and international experts on this issue, which requires urgent solutions.

The global view of the problem, mitigation, adaptation and the national and global reality were the thematic axes of the meeting, in which the efforts made by different sectors were valued.

In its 20 years of existence, the Copec-UC Foundation has developed an arduous and fruitful work in support of applied scientific research and technological innovation, with a view to generating solutions to the several problems that society faces. As part of this mission, each year it holds a seminar on a specific cutting-edge topic, which is attended by renowned national and international experts. Thus, in recent years, topics such as water scarcity, food, the development of artificial intelligence and other highly relevant issues have figured prominently.

Environmental challenges, always growing and increasingly demanding measures that involve different actors, have been high on the agenda. This way, the aim is to generate discussion and try to address them in both in public policy as well as in companies, civil society and also in people's day-to-day lives.

In this context, mitigating climate change is a local and global urgency, a need to act now and a call to join efforts at all levels. For this reason, the 18th version of the seminar was entitled "Strategies to face the climate crisis" and coincided with the commemoration of the International Day against Climate Change, on October 24.

The executive director of the Copec-UC Foundation, Alfonso Cruz, explains that the event connects with the mission and objectives of the entity, which is always looking to the future, seeking new solutions and generating ideas so that we can all live in a cleaner and friendlier

planet. "We wanted to open a space to convene high-level international experts and thus address from different perspectives a problem that today is crucial for the country and for the world," he adds.

in the photo: Alfonso Cruz Executive Director at Copec-UC Foundation.

in the photo:

Members of the executive and management team of the Copec-UC Foundation, together with the speakers at the Seminar.

from the inside with the people

towards a global strategy

The first thematic axis of the day was the global view "of a problem that no country can solve individually, but where the solutions have to start from a macro strategy in which nations have to move forward, beyond local efforts," Cruz explains. That vision was contributed by Robert Armstrong, director of the Massachusetts Institute of Technology's (MIT) Energy Initiative, who warned that "if drastic measures are not taken, by 2037 the planet's increase in temperature will exceed two-degrees". The expert added that to reverse this scenario "greenhouse gas emissions must be reduced in the three main areas of the economy that consume energy: transportation, industry and electricity".

The second focus was on mitigating the effects of the climate crisis and how technological innovation plays a key role in this. Tomas Nauclér, global sustainability leader at consulting firm McKinsey, discussed how an orderly transition to net zero emissions should take place, as well as ways to encourage the creation of green businesses. In his opinion, "there are opportunities in a large number of markets for these technologies to work". Regarding Chile, he said that our country has relevant advantages in terms of electricity, "to become the Silicon Valley of sustainability worldwide".

But even if applied science and technology can help mitigate the impacts of climate change, these will continue to exist for a long time to come and societies must be able to adapt to extreme climate phenomena that we are seeing and experiencing with increasing frequency and impact.

Ursula Oswald, former Minister of Environment of Mexico and researcher at Universidad Nacional Autónoma de México - UNAM, spoke about this adaptation challenge. The specialist highlighted the role of companies in adaptation and resilience strategies and the importance of ESG (Environmental, Social & Governance) criteria.

In fourth place, the director of the UC Global Change Center, Dr. Sebastián Vicuña, grounded the previous topics to the national reality and outlined the challenges that must be assumed as a country to face the climate crisis.

To illustrate the seriousness of this, he showed alarming figures: until 2010, there used to be a maximum of four consecutive years with rainfall below the average considered normal, but since that year there has never been a period of normality, let alone a water surplus.

in the photo: Tomás Nauclér

Global sustainability leader at McKinsey.

Reduction of greenhouse gas emissions in transport, industry and transportation, industry and electricity, based on a macro strategy beyond local efforts.

SEMINAR "STRATEGIES TO ADDRESS THE CLIMATE CRISIS" ORGANIZED BY COPEC-UC FOUNDATION: Brought together national and international experts on this issue that requires urgent solutions.

The acceleration of the problem has led the authorities to establish commitments to move towards carbon neutrality by 2050. In the short term, through Law 21.455 on Climate Change, management instruments are defined at the national, regional and local levels to reduce greenhouse gas emissions.

Alfonso Cruz values all the initiatives arising from different sectors and recognizes that "Chile is taking this challenge very seriously and with an interdisciplinary vision. There is a concern in the political, academic, business and civil society worlds. Because of this, we have been able to move forward and show the international community that a small country like Chile can address this challenge and achieve measurable results". In this regard, he considers the innovation and dissemination efforts made

MAIN LINES OF DISCUSSION

An orderly transition to reach net zero emissions and encourage the creation of green businesses.

ADAPTATION NATIONAL CONTEXT

by Universidad Católica together with Empresas Copec, through the CopecUC Foundation, as a contribution to generate impact and thus contribute "to reduce this enormous problem that threatens humanity and requires urgent change".

Still, his outlook for the future in this area is positive. "Society as a whole is coming to a high level of awareness of the challenges we face and the urgency in solving them. It is an understanding that we all have to take ownership of the problem and contribute to solving it. From top world leaders to simple citizens, we influence daily decisions such as the products we buy, how we move around or heat our homes, how we use water. While we may have different roles, we are all working towards the common goal of caring for the environment," he concludes.

The effects of climate change will continue to exist and societies must adapt to more frequent and extreme weather events.

Year 2050 as a goal for carbon neutrality. In the short term, management instruments are defined to reduce greenhouse gas emissions.

GLOBAL VIEW MITIGATION

roberto

in the

During the opening of the seminar, Roberto Angelini stated that "we have a great challenge as humanity and, as the scientific community tells us, time is running out. But I like to view the challenges with optimism, especially after witnessing what the world has been able to do since 2020 to address the pandemic. Will, resources, talents and, most importantly, the unity of purpose of people, institutions and states came together". He also stressed the importance of implementing the best state policies to contribute to this global cause, as well as promoting chains of actions that start at the individual level, in households, and extend to the country as a whole.

Emphasizing that the business world also has much to contribute, Angelini mentioned the main commitments and specific actions that Empresas Copec and its subsidiaries have been taking for several years now. "This is from an approach in which nature-

based solutions and innovation have a key role to play in the challenge of halving emissions by 2030 and achieving Net-Zero by 2050," he said.

Ignacio Sánchez, Universidad Católica's rector and vice-president of the Copec-UC Foundation, said that "in this scenario, universities cannot remain indifferent. On the contrary, we have a crucial role in contributing knowledge and experience in the search for solutions to the world's major problems, particularly in this climate crisis that we are experiencing globally and also at the national level. Here innovation, research and integral education, which is a fundamental part of the work of universities, are key to change towards sustainable human development."

Copec-UC

To conclude, Roberto Angelini stated: "Finally, it is important to ask ourselves what is the planet we want to inherit for future generations. One in which they are safe from natural catastrophes, where they can breathe clean air, where they have the possibility of enjoying each season of the year, where they have the privilege of seeing the blue sky and, of course, where they can enjoy and marvel at the beautiful nature that surrounds us. That's the planet I dream of for our children and grandchildren."

angelini, president of copec-uc foundation: "it is important to ask ourselves: what is the planet we want to leave to future generations?

photo: Roberto Angelini President of the

Foundation, during his opening keynote speech at the Seminar.

ARAUCO

THE NEW LINE, ONCE OPERATIONAL, WILL ADD AROUND 300,000 CUBIC METERS OF MDF PER YEAR.

Empresas Copec's forestry arm plans to allocate US$235 million to the subsidiary in Mexico. The project, consisting of a line of MDF boards, has already received green light by the local authorities.

Antonio Luque, vice president of Wood Business, emphasizes that the initiative opens new horizons for ARAUCO.

mexico's growing market

The state of Michoacán is located on the Pacific coast of Mexico, not far from Mexico City. In fact, the city of Zitácuaro is only two and a half hours away from the capital by car, a reasonable distance for a nation that, in terms of surface area, is the thirteenth largest in the world. This humid, subtropical climate zone is home to one of the two plants that ARAUCO acquired in 2019 -the other is in Durango, further

north- which marked the beginning of its industrial activity in the Latin American giant. This is the site of the project, announced last September, to build a new MDF (medium density fiberboard, mainly used in furniture) production line, with an estimated investment of US$235 million, and financed with the company's own resources.

Antonio Luque details that the line, once in operation, will add around 300,000 cubic meters of MDF per year, half of which will correspond to boards with melamine paper and the rest to bare boards. The executive explains that the Zitácuaro plant currently has a line dedicated to particleboard, which is a different product than MDF, and that the same site will house this new facility, which will incorporate state-of-the-art operational, environmental and safety technology, and which will effectively double the current capacity. "All the environmental permits have already been granted by the authority and, in general, there is a lot of support for investment

in that area. Authorities welcome the fact that there are investments, generating other permanent sources of employment for people and also encouraging forestry plantations," says Luque. In fact, it is estimated that an average of 350 people will be employed during the construction phase, while at peak the figure will rise to 600. Once in operation, the project will generate some 200 jobs. The acquisition of the equipment is currently in negotiations, and it is expected to be available in one more year to begin the construction and assembly phase. Thus, the new line is expected to be operational by 2025. Antonio Luque explains that the greatest attribute of the project is precisely its target audience: the Mexican market. "It is a growing market, developing due to Mexico's natural growth, plus everything related to having the United States as a neighbor, and we are a leading company in this business in Mexico." Luque points out that the Mexican nation has a deficit in the production

of boards, which is why it depends heavily on imports. "Today, Mexico produces around 700,000 cubic meters of MDF in total, and the market must be more than 1.2 million cubic meters. When we start our production, it is estimated that the market will exceed 1.5 million cubic meters and Mexico will have a slight growth in its production; there is no other project of this magnitude," explains the engineer. This adds to the "U.S. factor," a nation that is in the process of changing its sourcing patterns, bringing a large amount of manufacturing closer to its borders.

Today, ARAUCO exports MDF to Mexico from Brazil and Chile. "In the global context, demand continues to grow,

FORESTRY PLANTATIONS,"

SAYS ANTONIO LUQUE.

"THERE IS A LOT OF SUPPORT FOR INVESTMENT IN THAT AREA. AUTHORITIES WELCOME THE FACT THAT THERE ARE INVESTMENTS, GENERATING OTHER PERMANENT SOURCES OF EMPLOYMENT FOR PEOPLE AND ALSO ENCOURAGING

in the photo: Antonio Luque Vice president Wood Business.

Construction of a new MDF (medium density fibreboard) production line used mainly in furniture.

Once in operation, it will allow the incorporation of about:

and what we are doing is relocating supply points. Mexico is beginning to supply itself and Brazil is starting to supply more to the United States. Meanwhile, Chile is also exporting to Asia."

Sustainability will also be a strong focus. In this regard, Antonio Luque states that 80% of the treated effluent will be reused. In addition, a biomass-based plant is being considered for thermal energy generation to replace the burning of fossil fuels. Also noteworthy is the use of 40% of wood as by-products of sawmilling processes.

from the inside with the people general interest with first and last name index worldwide summing it up news

The successful results of e-commerce with the "Muevo" app, collaborators in the role of hosts, the development of the stand-alone store format and a special focus on the food service offer are part of the changes that Pronto Copec has been incorporating over the last years.

And with sustainability at the core of its business strategy, the company made a commitment to Zero Waste by 2029, aiming to generate zero waste in its operations.

arcoprime :

In 1965, the well-remembered "Rutacentros" debuted in the main highway service stations, a milestone with which Copec introduced the convenience store concept in Chile. Today, almost 60 years later, the company has a robust network of 420 stores throughout the country. Managed by the subsidiary Arcoprime, the well-known Pronto and Punto brands have positioned themselves as the preferred consumption options for millions of Chileans.

In the midst of the current challenging economic context, Arcoprime points out that one of the keys to preserving its position in the last period has been to maintain attractive offers that prevent the total pass-through of inflation to the final price paid by the client. This strategy has made it possible to offer a range of promotional products, especially for those customers who belong to the "Full Copec" loyalty plan. "While the last two years have been very volatile, the industry has grown a lot. Overall, it had a 16% increase from 2019, and we far exceeded that figure. This has to do with the increase in the assortment of our stores, incorporating new categories that were not previously offered, and

with a substantial improvement in our food service program. On the other hand, we are investing in technology, both for the gastronomic equipment and for all the sales systems, with the aim of increasing our customer service capacity and improving service levels for our customers", says Nicolas Rostagno, CEO at Arcoprime.

The incorporation of technology has been one of the keys to this performance. Through Copec's "Muevo" app, the user has access to the complete product offering. With more than a year in operation,

MIDST

significant growth has been observed, which reflects the preference of customers for a more agile and memorable shopping experience.

According to the executive, this digital platform has made it possible to increase the volume of customer service, to make the cashier service more seamless and to incorporate a more relational aspect with the customer. "By freeing up this service resource at the cashier's counter, people are now being trained so that their role, which used to be more transactional, is now a more human and personalized service. The aim is for the person at the cash register to be a host and guide the purchasing process, generating a virtuous alliance so that the customer has a faster, more personal and closer shopping experience".

IN THE

OF THE CURRENT CHALLENGING ECONOMIC CONTEXT, ARCOPRIME POINTS OUT THAT ONE OF THE KEYS TO PRESERVING ITS POSITION IN THE LAST PERIOD HAS BEEN TO MAINTAIN ATTRACTIVE OFFERS THAT PREVENT THE TOTAL PASSTHROUGH OF INFLATION TO THE FINAL PRICE PAID BY THE CLIENT.

from

For years, two well-known brands coexisted in the Arcoprime universe: "Pronto" and "Punto". The company recently announced its decision to unify the branding of all its stores under the "Pronto Copec" brand. This, after a diagnosis process that allowed to identify a number of similarities in the value offer of both businesses, detecting differences only in terms of operational models.

"We realized that both worlds came together. The synergies were evident and, although it was a complex challenge to unite the operational models between dealerships and the company's own operation, we had the opportunity to leverage the Pronto brand. One of the most important lines of work of this synergy was the training of the dealer network throughout the country, planned over a period of one year, with the goal of unifying the value proposition, adding Pronto's product offering in all locations", says Nicolás Rostagno.

And this is not the only transformation Arcoprime is implementing. The company also plans to grow in the stand-alone store format, i.e., stores located outside service stations, expanding its reach. In this regard, Nicolás Rostagno states that "we are growing both inside and outside the network, bringing our offerings ever closer to our customers".

In terms of e-commerce, Arcoprime values the massification of this purchasing model as a consequence of the extended quarantines during the pandemic. And it has continued to strengthen this channel through alliances with demand "aggregators" (Uber Eats, Rappi and Pedidos Ya). More recently, Copec's Muevo application has become more relevant, enhancing the digital experience in physical stores.

"E-commerce was very relevant in the period when in-person traffic disappeared. Going forward we see a very significant return to face-to-face, which becomes an opportunity to bring the best of the digital experience to the physical world. The launch of the e-commerce purchase was carried out through the Muevo application, which allows to scan all the products in the store and order the complete menu of our kitchens, without having to wait in line. It is possible to shop from anywhere in the store and monitor the status of the order, thus controlling the entire shopping experience through the phone", says the CEO at Arcoprime.

PRONTO + PUNTO: Unification of the branding of all stores under the Pronto brand.

Was de debut of the well-known “Rutacentros”, at the main highway service stations.

"STAND ALONE" STORES: Located outside Service Stations increasingly extending its reach.

ARCOPRIME

NEWS:

E-COMMERCE - "MUEVO": Scanning of all products, enhancing the digital experience in physical stores.

Stores across the country. Managed by the Arcoprime subsidiary.

—

Today, Arcoprime not only identifies convenience stores as its main competitors, but also considers spaces known as "food courts" as a relevant player in the market, since one of the strong and sound elements of its value offer are prepared meals, always with the perspective of delivering the best product and a great service experience.

The company assures that its proposal is moving forward on two tracks. On the one hand, to improve the supply of products to

"ONE-STOP SHOP": An alternative of buying in several occasions in one place, with an offer for breakfast, lunch or late-night meal, among others.

in the photo:

Nicolás Rostagno CEO at Arcoprime.

one-stop shop, the proposal's differential value

deliver a good price-quality ratio. And, on the other hand, the One-Stop Shop possibility, which refers to the alternative of shopping for various occasions in a single place, i.e., offering breakfast (where they are leaders), lunch (where they compete with fast food) or late-night food, among others.

"Our proposal seeks to cater to all these situations and needs, when usually the rest is concentrated on a single occasion. Another point of differentiation is infrastructure. Pronto has

always been outstanding for this, being superior in its bathrooms, in the design of its facilities, in its outdoors; and we must continue to strongly bet on the position we have there. What we are doing now is bringing the Pronto infrastructure to Punto, along with the technological equipment”, says the executive.

COPEC'S MUEVO APPLICATION HAS BECOME MORE RELEVANT, ENHANCING THE DIGITAL EXPERIENCE IN PHYSICAL STORES.

Finally, when it comes to the future, for the company, the efficiency and productivity agenda will be the navigation map for the industry in general, where production costs become a challenge. This is why the increase in productivity comes hand in hand with the digitalization of stores, boosting sales per salesperson.

strategic growth leveraged on sustainability

Identifying and promoting strategic and sustainable growth opportunities through the design and implementation of cross-business action plans, as well as ensuring a culture focused on customer experience, are part of the objectives of Arcoprime's new Strategic Growth and Sustainability management, led by María José López.

The executive explains that every step the company takes is inspired by a collective purpose, which is "to enrich people's lives on the journey to their destination". To this end, the following pillars were defined: growth, better product and experience, productivity and efficiency, and sustainability. The latter is integrated in a crosscutting approach, so that each area incorporates it into its processes. "We developed a strategy to integrate sustainability into the business model, gathering and analyzing the actions that generate the greatest impact, interviewing stakeholders, studying benchmarks, among other lines of work. This way, we align ourselves with the strategy developed by Copec and define three areas of impact: environment and community, passion for people and service, and excellence in everything we do", says María José López.

The area of action they have prioritized is: environment and community, and, more specifically, what they do in circular economy within this framework. In fact, last year, when Copec published its Climate Change Statement, Arcoprime committed to the action plan to achieve Zero Waste by 2029, thus aiming to generate zero waste from its operations by that date. The company has also been working for some time with Rembre for the management and subsequent valorization of waste from its stores and this year began an alliance with F4F (Food For The Future), that receives organic waste to be used as food for black soldier fly larvae, which are subsequently transformed into high quality nutritional compounds for animals. In this way, the company achieves the circularity of such waste.

"Sustainability must be part of our daily decisions. It is a strategic pillar in line with the demands of our customers, employees, society and all stakeholders. In addition, what is generated internally is very valuable, our teams have been to the F4F plant, they learn about and are trained in the process and witness the results of their actions. It is very enriching to see how they feel part of this commitment, are proud of the contribution they are making to society and even share it as their own achievement with their families", the executive highlights.

Another very valuable initiative for Arcoprime has to do with the community impact, based mainly on the partnership with "Red de Alimentos", which allows them to connect with social organizations that may need food products, which, although fit for consumption, cannot be sold due to the proximity of their expiration date.

What's next? For Arcoprime, the challenges begin now. This year the company was focused on implementing this renewed model and a new governance and aims to deepen all initiatives. "The 'Zero Waste' challenge we have is a priority. It is very ambitious

Strategic Growth and Sustainability management of Arcoprime.

and has many associated actions and that is where we will concentrate our efforts, so that this platform that we create in 2022, this base, will be useful for all the lines of work from now on, until we reach the goal in 2029", the executive adds.

Finally, the company aims for Pronto Copec to continue building on the value of sustainability and "for the customer to recognize that we are a significant brand, that we care about doing things well; that they are aware of our impact, that we are a brand that generates value for the business and also for the community, being a true reflection of our actions", concludes María José López.

maría josé lópez

copec's puelche project:

PUELCHE PLANT: PUSHING HARD TOWARDS CLEAN ENERGIES

In October of this year, Copec's subsidiary Flux Solar inaugurated the first solar plant of a total of 23 that it plans to build and which will be in operation before December 2023. These plants correspond to the Small Means of Distributed Generation, (PMGD, for its acronym in Spanish) classification and, in total, will reach 300 thousand MWh per year. This is equivalent to the domestic consumption of more than 30 thousand homes, having a positive impact on non-conventional renewable energies in the country.

Nothing suggests that the name Puelche has anything to do with the purpose of the project led by Flux Solar, but, without a doubt, like a strong gust of wind, this solar power plant brings along new challenges for Copec and one step forward in its transformation process.

Puelche is the first plant of a portfolio that includes 23 Small Means of Distributed Generation (PMGD) to be built between 2022 and 2023, becoming a gateway to the distributed generation market.

Located in the Biobío Region, in Los Ángeles, this plant has more than 5,350 bifacial photovoltaic panels, which capture light from both sides and make its use more efficient. It has a capacity of 3MWp, which will generate 6,000 MWh per year, equivalent to the domestic consumption of 750 homes and a saving of 2,230 tons of CO2.

However, this figure only represents 2% of the total energy expected from the expanded project, which will have a capacity of 146 MWp and will reach 300 thousand MWh per year. It will have plants

to be installed in the Metropolitan, Valparaíso, O'Higgins, Biobío and Ñuble regions, among others distributed throughout Chile, with a total investment of US$146 million.

"For a German like me, Santiago has wonderful radiation," says David Rau, CEO at Flux Solar Copec, who demystifies the idea that energy is generated only in the north. "We have plants as far away as Tierra del Fuego and the technology we use works everywhere," he says.

According to Rau, due to their size, these projects are easily adapted to local space conditions and needs. At the same time, they do not generate noise, obstruct the view or take up space that could be used for other activities. In addition, being close to the areas of consumption, it is not necessary to allocate large infrastructure costs in terms of transportation or transfer, or maintenance.

in the photo: Copec and Flux Solar executives at the inauguration of Puelche.

"Solar plants have a maximum height of two to three meters on average, and have a useful life of 30 years," explains the manager of Flux Solar, a company that is also working in Colombia with Terpel.

In Chile, the plants are currently at different stages of progress. Two of them are operational, nine are under construction and, depending on the size, take about three and six months to be built. The work would be completed by the end of 2023.

"I came to Flux Solar because I believe it is necessary to generate clean energy, and Copec has allowed us to have a greater impact and a greater reach that will be noticeable at the country level. In this scenario, Puelche is the first stone and the proof that we are capable of doing this type of project together," says Rau.

—

with an eye on the future and people

For Leonardo Ljubetic, Corporate Development Manager of Copec, Puelche is a relevant milestone for the company, just as when a child takes its first steps and parents begin to dream of what it will be like when he/she grows up and becomes an adult.

This is the first stage of a dream that was born as a result of a deep and strategic innovation process that began a few years ago, with the company's need to connect with people and new trends, without losing its essence and the core of its business.

in the photo: David Rau CEO at Flux Solar.

THE PUELCHE PLANT WILL GENERATE 6,000 MWH PER YEAR, WHICH IS EQUIVALENT TO THE DOMESTIC CONSUMPTION OF 750 HOMES AND A SAVING OF 2,230 TONS OF CO2.

from

"We decided to take a closer look at what was happening on the world stage, and realized that a number of trends related to decarbonization and climate change were gaining strength, such as electromobility, distributed generation, smart storage and the digitalization of energy. All of these represented a great opportunity for the country and for Copec. We had to approach these new businesses decisively and quickly," says Ljubetic.

a benchmark in innovation

SMALL MEANS OF DISTRIBUTED GENERATION

This innovative process and drive have led Copec to become a benchmark in the country, standing out among the leading companies, according to the latest The Most Innovative Companies 2022 Ranking, a measurement carried out annually by ESE Business School and MIC Innovation consulting firm, together with the newspaper El Mercurio.

Capture light from both sides for more efficient use.

6,000 MWh per year of non-conventional renewable energy (NCRE) is expected to be injected into the Central Interconnected System (SIC).

This is equivalent to the domestic consumption of 750 homes.

PUELCHE PLANT

COPEC HAS AN ATTRACTIVE PORTFOLIO THAT INCLUDES FLUX SOLAR, EMOAC, STEM, AMPERE ENERGY AND VOLTEX, AMONG OTHER PROJECTS RELATED TO ENERGY EFFICIENCY.

In the same vein, a few years ago Copec created an innovation and new business hub, Wind Garage, with which the company has been able to identify, design and scale innovative ideas and have an attractive portfolio that integrates different companies focused on the use and commercialization of new energies: Flux Solar, EMOAC, DHEMAX, Stem, Ampere Energy and Voltex, among other projects related to renewable energies and energy efficiency. Copec Wind, through its Corporate Venture Capital and its garage for the development of new businesses, has become a reference in the country and in Latin America.

"There is not one future, there are many futures. And in order to address this challenge, it is necessary to develop capabilities that have to do with identifying and capturing opportunities with great flexibility, moving with agility and speed," concludes the Development and Management Corporate manager of Copec.

_

Leonardo Ljubetic Corporate Development Manager of Copec.

A SUSTAINABLE RALLY

The Copec RallyMobil 2022, the largest automobile series in Chile, was held between March and December 2022. With 22 years of trajectory, this version had eight stages in the regions of Biobío, Ñuble, Los Ríos and Los Lagos, and brought with it the best national and international racers.

In addition to the spectacular display, the Copec RallyMobil has the purpose of linking and generating positive impacts in the locations where it takes place. On this occasion, the route was complemented with the inauguration of several libraries of the Viva Leer project.

The competition had a rigorous Environmental Mitigation Plan, implemented together with CODEFF (Committee for the Defense of Flora and Fauna), which was considered for the design of all the race routes, with the aim of respecting the natural environment of the regions. Moreover, together with the subsidiary ARAUCO, the company worked to offset the carbon footprint generated. Work was also done to store and manage hazardous waste.

Finally, Copec Voltex brought the first 100% electric car in Latin America to the tracks, piloted by "Chaleco" López, in line with the subsidiary's leadership in the new era of sustainable mobility.

nutrisco holding:

DRIVING SUSTAINABLE NUTRITION

Generating a transformation around a clear and guiding purpose is something that drives Rigoberto Rojo, CEO at Nutrisco, and his team to work for the growth of the holding company. "I am motivated by positively impacting people's quality of life. Every day there is a growing awareness that food is important and that it affects countries, society and individuals. Having the capacity to incorporate products into the market that respond to this challenge, being able to work with other actors, such as universities and entrepreneurs, among others, and making new innovative products available to people creates a very real impact," he says.

The idea of setting up Nutrisco was born in 2017, when Orizon felt the need to expand into other food-related areas. Rigoberto Rojo, Nutrisco’s current CEO, who previously held the same position at Orizon, says: "Five years ago we were seeing a fishing sector challenged by regulatory changes and low quotas. So we asked ourselves how to make it grow. We had a brand, San José, we had customers, a very strong distribution in the modern channel, but also in the traditional channel. In addition, we were receiving many investment opportunities in the food sector, but we did not have a clear vision to take advantage of the opportunities. From there, we began to develop a strategy to develop this new business."

This is how Nutrisco was born, a name that perfectly matched what was to be the core of its work: nutrition. The purpose was outlined over time to become the Company's roadmap. "What drives us is to do good for people, to make food an enabler to reach their potential, and this inspires us to innovate and improve products that are not essentially staples to achieve this goal.

Sports and snacks, for example, are also part of our daily lives," says Rojo.

—

This year 2022 marked the purchase of a company that would be key to accelerate the process of creating Nutrisco: Valle Frío, dedicated to the production of frozen fruits, mainly for retail. The company was a perfect fit with the holding's purpose, because it offers healthy, value-added products that generate innovative solutions and address food trends such as functional foods, "on the go" or "ready to eat." For Rigoberto Rojo, this last point was crucial. "They mix berries and non-berries, both from Chile and the world, and export in mix format to the United States. They have very good customers, such as major supermarket chains, including Amazon. In addition, through the support of a larger company,

a milestone that drives change

in the photo: Rigoberto Rojo CEO at Nutrisco.

in terms of its financial, administrative and management capabilities, they could have great growth potential."

On the other hand, Valle Frío had a differentiating characteristic beyond the business, linked to the people who are part of it. "Their partners have been in this business for many years and know the industry very well, and they also have a peoplefocused culture, which was an important driver for us. Ultimately, it's not just about adding assets, but that they also make a complete match with Nutrisco's strategy," says Rojo.

The transaction has already borne its first results and Valle Frío has grown by 50% since its acquisition. Sales of US$ 80 million are expected for next year.

—

a structure to meet

the challenge

The creation of the new holding company also entailed a complete restructuring of its businesses. As a result, the company will initially consist of four lines of business: Orizon, Valle Frío, a snacks area and Nutrisco Chile.

Orizon, the group's fishing company, whose team led this transformation process towards Nutrisco, will aim to add

value, moving from canned foods, flours and oils to incorporate new technologies that will improve the offer for the end consumer. In addition, they have just launched a new brand, Fisherman, which will have premium seafood products such as crab, southern hake, albacore and sea bass, among others.

THIS YEAR 2022 MARKED THE PURCHASE OF A COMPANY THAT WOULD BE KEY TO ACCELERATE THE PROCESS OF CREATING NUTRISCO: VALLE FRÍO, DEDICATED TO THE PRODUCTION OF FROZEN FRUITS, MAINLY FOR RETAIL.

Together, under the guidance of Orizon's Smart Nutrition area, they have conducted studies to better segment the types of flours and oils to meet new customer needs. In that line, a premium pet food area was developed, under the Pet Marine brand, which will soon be launched on the market, and whose main attribute is its marine origin.

In the area of snacks, the star product will be Flip, a low-fat vegetable chip project by Pedro Bouchon, vice-rector of Research at Universidad Católica and the Copec-UC Foundation, whose recently inaugurated production plant in Santiago will have the capacity to produce 60,000 bags per month. "This initiative demonstrates that it is possible for a company that wants

to innovate and join the world of snacks as a category to join forces with a university and a foundation," says Nutrisco’s CEO.

On the other hand, Nutrisco Chile will focus on marketing different products, both its own and those of third parties, which will be the greatest challenge for the holding company in the coming year. According to Rojo, this subsidiary will be the differentiating element of the entire group. "You can buy various assets, but the common

thread that makes it all possible is Nutrisco Chile, granting access to the market, to customers, to vendors, etc. We are focused on developing that capacity during 2023 and 2024," he concludes.

Nutrisco, a new holding company of Empresas Copec, was created with the goal of consolidating the Group's food industry businesses. It will be comprised of four lines of work:

NUTRISCO

VALLE FRÍO:

Dedicated to the production of frozen fruits. Offers healthy and value-added products.

ORIZON:

The group's fishing company will continue to add value, complementing its offer of canned products, flours and oils, with seafood products in the premium category. It will also add a pet food line.

SNACKS:

Flip has a new processing plant with the capacity to produce 60 thousand bags of low-fat vegetable chips per month.

NUTRISCO

CHILE:

Will market different products, both its own and those of third parties. This subsidiary will be the differentiating element of the entire group.

THE IDEA OF SETTING UP

WAS BORN IN 2017, WHEN ORIZON FELT THE NEED TO EXPAND INTO OTHER FOOD-RELATED AREAS.

cristián larraín CEO at Orizon.

"At Orizon, mobilized by our purpose: 'Committed to leading sustainable nutrition from the sea', we started several years ago to innovate in new technologies, processes, product development, new marketing channels, etc. All of this with the goal of reaching a greater number of customers in Chile and the world with our healthy, tasty and nutritious products, as well as responding to the increasingly demanding requirements of consumers.

For 2023, we have an agenda with a series of social, environmental and economic initiatives. We will continue to deepen our energy management system, implementing 100% renewable energy, carrying out our odor management plan, working

to reduce our waste and carbon footprint, as well as deepening our relationship with the community and the artisanal world, with a focus on Coronel and Coquimbo.

Regarding sales management, we have a series of challenges that we will strongly promote, such as the new Fisherman and Pet Marine brands, the latter focused on the Pet Food world. We will also add to our portfolio FISH4PET, a British brand for which we have exclusive representation in South America. In addition, we will launch our European office, located in Vigo, Spain, as well as strengthen our office in Miami, United States, for the incorporation of new product lines.

In April 2023, the canning plant will start operations and in December the new cold storage and freezing plant (Arctic Project) in Coronel will begin operations. Also, we will continue to make progress in consolidating Blue Lobster's R&D project, in which we are working to produce lobsters under the RAS system.

Finally, in our ongoing search for the well-being and quality of life of our employees, we will complete the long-awaited project for a new office and service facility at our canned food distribution center in Talcahuano. We are developing it under industrialized construction technology, with the company E2E. This property, built in wood, will also be very relevant in terms of sustainability and habitability."

"we seek to respond to the increasingly demanding requirements of consumers."

"Our incorporation to Nutrisco has been very positive, as they had a very similar philosophy to ours towards integrated and sustainable growth over time. These months have been a learning experience as we have had to join a company with the highest standards of quality, service and information. Without leaving aside what we were already doing, we have managed to integrate Nutrisco's culture into the work team.

Our team has grown stronger over time, people with many years of

experience working with us. We are a low turnover company and we try to give opportunities to people who are already with us when a new position is created.

I believe that reaching the partnership with Nutrisco was a great achievement this year, it shows that Valle Frío had been doing things very well and what we needed to maintain what we had already achieved and, in addition, to be able to grow two or three times in the coming years. In 2022 we are meeting a key objective by consolidating sales and growing by close to 50%, and we expect to close with sales of approximately US$55 million.

For 2023, our main challenges are to maintain our customers with the same and even better service that we have been providing, consolidating our human resources by providing tools to work under Nutrisco's standards. On the other hand, the goal is to open a commercial office in the United States, which is our main market".

josé pedro moreno CEO at Valle Frío.

"we have succeeded in integrating the nutrisco culture into the work team."

"Nutrisco Chile's role will be to articulate its own brands, those of entrepreneurs, SMEs and foreign companies, so that they can successfully reach consumers in our country. Thus, the constitution of Nutrisco Holding provides us with a platform and business model that enhances the organic and inorganic growth of Nutrisco Chile. In addition, it provides us with an important sustainability route, which gives us a navigation tool in accordance with the trends and needs of today's world that guide us in our daily work.

This 2022 has been key to incorporate the resources and capabilities to implement our five-year business plan. This year's achievements have to do with the creation of a structure to

implement the strategy, which has meant recruiting talent from the national food industry.

In addition, progress has been made in the building of our distribution center in the Metropolitan Region, which will have 24,000 square meters under the umbrella of the Megacentro project in Buenaventura. We expect to inaugurate this facility next April.

On the other hand, we have made progress in the diversification of our products with the incorporation of new categories, such as beef, pork and chicken proteins; groceries with pastas and sauces; and frozen fruits and vegetables, in addition to our previously marketed products. Finally, we have added new brands to our portfolio, which is in line with our early response to consumer demand.

Our main challenge for the coming year is to scale our channel strategy with a focus on traditional, foodservice, modern and omnichannel channels, leveraging on the fulfillment of our service promises. Besides the importance of the development and entry of new brands and categories that complement the existing ones".

francisco bertens

CEO at Nutrisco Chile.

"we want to become active as a marketer to respond with excellence to people's needs."

WHEN THE COMMUNITY IS THE PROTAGONIST

Environment, training, entrepreneurship, health and good practices are some of the issues on which the company works closely with the inhabitants of the areas in which it operates.

In Brazil and Argentina there are long-standing projects based on dialogue and the search for solutions that contribute to the integral development of the territories, which between the two countries total more than 475,000 hectares of forestry heritage and over a dozen facilities including plants, sawmills and power plants.

ARAUCO IS CARRYING OUT VARIOUS SOCIAL PROGRAMS IN ARGENTINA AND BRAZIL ADDRESSING ISSUES SUCH AS EDUCATION, ENVIRONMENTAL PROTECTION AND ENTREPRENEURSHIP, AMONG OTHERS.

arauco argentina and brazil:

Being a good citizen is a transversal value at ARAUCO, based on the conviction that building and maintaining permanent relationships of trust with those who live daily with forestry activities is a way of creating social value. In short, the aim is to establish ties of collaboration, respect and communication with the communities in which the company has a presence, so that everyone can participate in the development generated in those territories.

Always with a long-term vision, and with a genuine interest in contributing to the integral well-being of people and the environment, ARAUCO developed a Social Management Plan. This contains several initiatives and programs, which target different audiences of interest and cover different topics, including school and higher education, environmental protection, training or acquisition of job skills, promotion of local entrepreneurship and several others.

brazil: three axes, one objective

Maria Harumi, Deputy Manager of Socio-environmental Responsibility of ARAUCO Brazil, explains that this work is structured around three axes. One of them is environmental, in which "we seek to produce in a sustainable approach and act in favor of the conservation of natural resources."

This includes biodiversity research projects, watershed monitoring, management of areas of high conservation value and all measures aimed at achieving carbon neutrality.

The second axis has to do with education, culture and sports. It includes initiatives "that contribute to the training of teachers, environmental education among schoolchildren and support for projects that promote the appreciation of local and regional culture," explains Maria Harumi. The collaboration of the municipalities and the participation of more than 15,000 students in the ecological visits to the forestry units, which have been carried out for more

"THERE IS ALWAYS A PURPOSE, WE CAN ALWAYS DO A LITTLE MORE, BECAUSE BEING A GOOD CITIZEN IS THE SOUL OF ARAUCO," SAYS MARIA HARUMI.

from the inside with the people general interest with

and

than 20 years, stand out. "On these tours, children gain environmental awareness and learn how to prevent forest fires, properly dispose of garbage and learn about the damage caused by illegal fishing and hunting. It is a real open-air laboratory," she adds.

Other activities include "Muda Mundo" (World Change), which provides educational material to teachers and students to transform the school community; "Estante de historias" (Story Rack), which equips schools with libraries; and "Atletas del futuro" (Athletes of the future), sports championships for children and adolescents in socially vulnerable situations.

Thirdly, there is the relationship with the communities, whose purpose is to identify and act on the social impacts together with the inhabitants of the territories, in a transparent approach, with consultation, respect and involvement. Here, the ARAUCO team develops a bulletin with games with

environmental content and good coexistence. "We talk to our neighbors, handing out material to explain what the company does, learn about their concerns and seek joint solutions to the problems that may be affecting them. It is a well-functioning interaction channel that allows us to improve and help each other. In addition, people really value being heard," says the Deputy Manager of Socioenvironmental Responsibility of ARAUCO Brazil.

These and many other actions are carried out with a long-term view, since, especially in the educational field, results are not immediately visible. On the other hand, Maria feels the

satisfaction "of being able to transform the reality of these localities, that often are not reached by the State's resources. That's why we are so happy to be with people and to see that feeling of gratitude towards ARAUCO. There is always a purpose, we can always do a little more, because being a good citizen is the soul of ARAUCO."

—

from the inside with the people general interest with first and last name index worldwide summing it up news

HECTARES IN FOREST PATRIMONY ENVIRONMENT

Some of the issues in which the company works closely with the inhabitants of the areas in which it operates:

FACILITIES CONSIDERING: EDUCATION

ENTREPRENEURSHIP

POWER STATIONS

PRACTICES BRAZIL AND ARGENTINA: 475,000+12

MILLS

are emerging in the world. We are moving away from a paternalistic role to become a strategic partner, creating alliances with different audiences so that they can grow, develop and find opportunities hand in hand with ARAUCO, but each one doing their part."

Ángeles argues that with this approach, the bond ends up being sustainable over time, the result is more effective and gives greater value to the school, hospital or neighborhood that feels like a protagonist. "It took time, but when we were able to open a dialogue with the community, we saw that this was the way to go: listen to them, learn from them and let them see how we do things, all with humility. And so, they stopped seeing us as a closed-door company that imposes things."

Among the specific actions derived from this communication with the people, investments have been made to resolve environmental impact issues; visits to the plants were organized so that neighbors could learn about the production process; vaccination campaigns against Covid-19 and dengue prevention were carried out; and good practices were shared to prevent forest fires.

There are also long-standing initiatives, especially in the educational field. Teacher training, content adaptation and constant support in the teaching and learning process are pillars of ARAUCO's management in Argentina. All this is planned with the support

of an external team of professionals, including forestry engineers, psychopedagogues, teachers, psychologists and others.

"It's great teamwork," says Ángeles Alonso. A shared effort that generates tremendous pride in achieving this direct contact with the neighbors. "We listen to each other. We are a responsible neighbor; we feel part of the community and we accompany it at every moment. We are one more."

"WE ARE A RESPONSIBLE NEIGHBOR; WE FEEL PART OF THE COMMUNITY AND WE ACCOMPANY IT AT EVERY MOMENT. WE ARE ONE MORE," SAYS ÁNGELES ALONSO.

in the photo: Ángeles Alonso Head of Corporate Communications of ARAUCO Argentina.

in the

A few weeks ago, Empresas Copec's third quarter results were released. Ebitda reached MMUS$ 2,951 and income reached MMUS$ 1,475. The company completed five consecutive quarters in which Ebitda recorded levels close to US$ 1 billion.

The good results were sustained in all business areas. In pulp, 2022 has featured a market that, after several years without significant additions of production capacity, has little slack. In addition, cost inflation has particularly affected less efficient producers, pushing up break-even prices. Thus, pulp has traded throughout the year at levels that are high by historical standards.

Meanwhile, the wood and panel segment continues to deliver good results. However, there are already signs of weakening in some products. This was to be expected, since the remodeling and construction sectors, which had driven strong demand for all these products, are undoubtedly being affected by the new scenario of higher interest rates and slowing economic activity.

In energy, fuels continue to show some positive effects stemming from the industrial segment and inventory revaluation, although in some territories volumes are beginning to decelerate. Gas, on the other hand, showed mixed performance in the different countries, with a solid upward trend in the Peruvian subsidiary.

In the mining sector, Mina Justa has registered some increases - transitory, for the most part - in costs, but continues to contribute significantly to Empresas Copec's profits.

The good results have allowed to substantially improve the Company’s credit metrics, showing today a solid financial balance sheet. Therefore, as MAPA, the last of the projects of the previous growth phase, is about to start operations, Empresas Copec is in a position to begin a new stage of expansion.

In energy, the growth path involves a strong component of energy transition and transformation. The low-carbon economy, towards which the world must move, requires gradual and consistent efforts, and Empresas Copec wants to be part of this process. Flux Solar's distributed generation initiatives or the move towards last-mile logistics through Blue Express are clear examples of this.

All in all, Empresas Copec today shows good results, a robust balance sheet and an expansion strategy based on sustainable growth. We hope that all of this will allow us to continue being a relevant player in the generation of well-being for the societies in which the Company's activities are immersed.

The lines that have been drawn for this are clear. In the forestry sector, we will continue to seek projects based on deep and sustainable competitive advantages, which also allow us to make a substantial contribution to the environment through the absorption of carbon that is inherent to this activity. The Sucuriú pulp project, which will increase production capacity by 50%, or the initiatives announced in panels, are clearly in line with this philosophy.

photo: Rodrigo Huidobro Alvarado CFO at Empresas Copec.

empresas copec places two series of bonds for a total of us$ 254 million read

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from the inside with the people general interest with first and last name index worldwide summing it up

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up news

empresas copec places two series of bonds for a total of us$ 254 million

the proceeds will be used to refinance liabilities of the company and its subsidiaries. the placement agent was credicorp capital.

This transaction, carried out during November, is Empresas Copec's second of its kind this year, and included 3 million UF in series AA, in a 10-year term and a placement rate of 2.65%, and 3.5 million UF in series AB, with a 21-year term and a placement rate of 2.58%.

It should be noted that these series of bonds have a local risk rating classification of AA/Stable, according to certificates granted by Fitch Chile and Feller Rate.

Regarding the operation, Rodrigo Huidobro, Chief Financial Officer at Empresas Copec, said: “The placement had very good results. Thanks to a job well thought out and executed, we were able to take advantage of a market window with excellent conditions. The rates and spreads achieved in both

series are among the lowest recorded in recent times in transactions of this type, and the demand far exceeded the amount offered. We appreciate the confidence of the financial markets and institutional investors in the Company and in the sustainability of its business model”.

as part of the cop27, the subsidiary announced this major breakthrough, which will be based on a strategy called "a, b, c" (water, biodiversity and carbon, or agua, biodiversidad y carbón, for its initials in spanish).

During the United Nations Summit on Climate Change, COP27, ARAUCO unveiled its plan to measure the natural capital related to its operation, with the goal of becoming a Nature Net Positive company.

Following the parameters of the British Standards Institution, ARAUCO developed a strategy called "A, B, C" (water, biodiversity and carbon, or agua, biodiversidad y carbón, for its initials in Spanish). With regard to water, it has a network for monitoring the hydrological cycle in 16 basins in the country, which allows it to quantify the contribution of trees to water regulation.

in its commitment to restore 50,000 hectares of native forest, in addition to maintaining a network of 167 areas of high conservation value on more than 60,000 hectares. ARAUCO is also carbon neutral.

arauco is working to become a nature net positive company.

copec and arauco stand out in ranking for their efforts to address climate change

both subsidiaries ranked among the top five in the "highest performance" category of the report by scx and deloitte presented during cop27.

The report "Radiography 2022: Corporate vulnerability to climate change of the 100 largest companies in Chile", conducted by SCX and Deloitte, was launched as part of the COP27, and analyzed Chilean companies that report their carbon footprint and emissions reductions.

For the study, four dimensions were analyzed: comprehensive measurement and verification; ambitious mitigation commitment; effective emissions reduction; and acceleration via neutralization. Based on them, five companies, out of the one hundred reviewed, managed to qualify in the "highest performance" category. They are ARAUCO, Copec, Sodimac, Viña Concha y Toro and VSPT.

Both subsidiaries of Empresas Copec, which were present in the Chile Pavilion at COP27, were recognized for their tremendous contribution to climate change mitigation.

The progress made by Copec and ARAUCO in this area is consistent with the sustainable development strategy of Empresas Copec and its subsidiaries.

copec is one of the five most innovative companies in chile

a key factor in their choice was the transformation process the company is undergoing, driving and accelerating the energy transition.

The subsidiary obtained two important awards in the 13th version of the Most Innovative Companies 2022 ranking, conducted annually by ESE Business School in partnership with El Mercurio and consulting firm MIC Innovation.

On one hand, the company was chosen as one of the five most admired companies for its commitment to innovation, as voted by 120 CEOs of the companies participating in the study. It also won 1st place in the Fuel Distribution sector.

Key to these achievements has been the transformation process underway at the company, which is committed to driving and accelerating the energy transition, taking advantage of all its innovation capacity to expand its offerings from fuels to electromobility and renewable energies.

golden omega builds desalination plant, boosting sustainability

this initiative will enable the company, whose production plant is located in arica, to reduce its potable water consumption by more than 75%.

As part of its commitment to sustainable development, the nutraceutical company is developing a project that will accelerate its goal of significantly reducing its consumption of drinking water.

The plant will have a capacity to generate 1,000 m3/h of desalinated water, equivalent to the daily consumption of more than seven thousand people. Its operation is planned to start in the first quarter of 2023.

Nicolás Huidobro, Administration, Finance and Sustainability Manager of Golden Omega, explains that this project will ensure the continuity of the supply for the operation and achieve a significant reduction in consumption from the potable water network, an important objective, considering the context of water scarcity that affects both the Region of Arica and Parinacota as well as the rest of the country.

It is worth noting that, at the present time, most of the water consumed by the company in its operations comes from the sea and is used in cooling processes. Thus, during 2021, only 3.1% of the total use came from the potable water network.

icreo 2022: copec leads energy category

this study recognizes the confidence that its customers and public opinion have in the company.

Copec continues to add new achievements in an area as relevant as people's trust. The ICREO 2022 study, developed by consulting firm Almabrands, measured 333 brands in 48 categories, determining that, of the 31 firms awarded on this occasion, Copec, as "First in Service", was ranked in the 27th place, also leading in the Energy category.

The ICREO study evaluates the performance obtained in five relevant dimensions related to building trust in organizations: honesty and transparency, accountability, empathy, support and closeness.

Gloria Ledermann, Marketing Manager of Copec, said that "we work by and for people, to enhance their development and mobility, delivering products and services that are always focused on the customer. The fact that people recognize us as

a reliable company motivates us to continue building community from the role that, as a company, we have throughout the national territory".

arauco to become zero waste by 2030

the company aims to valorize and recover waste within the framework of a circular economy model.

The forestry subsidiary has set itself an ambitious goal: to stop generating waste in less than a decade. To this end, the company is relying on the work of its Bioforest research center and leading players in the academic world. This is a logical path after becoming the first company in its field, worldwide, to certify its carbon neutrality.

The main materials that ARAUCO currently works with in the pulp area are bark, sand, ash and other impurities, which last year reached 55.6% of valorization. Likewise, in the lumber area, it reached 34%, a figure that the company expects to increase to 44% in 2022.

Marianne Hermanns, Assistant Manager of Environmental Compliance and Auditing of ARAUCO, explains that “the challenge is being addressed in a systemic manner and by a multidisciplinary team, which has even managed to generate new products such as layers of seals or nutrients needed for the growth of trees”.

in the 21st edition of the ranking, the brands obtained first place in their respective categories: service station and minimarket. news

copec and pronto lead procalidad 2022 index

The award is given each year to those brands that obtain the best service rating from customers.

During the award ceremony, Diego Peñafiel, manager of Copec Service Stations, thanked the thousands of people throughout the country who choose them every day, as well as the operators and dealers, who “put all their heart and work” into offering a memorable service. “This award encourages us to constantly challenge ourselves to surprise, day after day, each of our customers,” he added.

journalistic magazine published by: empresas copec s.a. el golf 150, piso 17. las condes teléfono: 2461 7000legal representative: eduardo navarrodirector: rodrigo huidobroediting and writing: m. francisca riverosjournalists: natalia labbé daniela araneda marisol silva francisca zúñigaproofreading: norinna carapellephotography: luis vargas archivo fotográfico empresas copec y filiales bancos de imágenesdesign and graphic production: porta4, design studiotranslation: cristina molinaif you have any suggestions and opinions, please write to us at comunicaciones@empresascopec.clfollow us:www.empresascopec.cl

The opinions expressed by the different authors and contributors in this magazine are the exclusive responsibility of those who express them and do not necessarily represent the opinion of Empresas Copec S.A.