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1 Fourth Quarter 2016 Earnings Results Earnings Conference Call Date: March 10, 2017 Time: 9:00 AM ET / 11:00 AM Santiago Time US Toll Free: Intl. Dial In: Conf. ID: Webcast: CMPC click here Investor Relations Contacts Colomba Henríquez colomba.henriquez@cmpc.cl + (56) Isidora Farías isidora.farias@cmpc.cl + (56) ir.cmpc.cl CMPC Reports 2016 Fourth Quarter Results Santiago de Chile, Chile, March 9, 2017 Empresas CMPC S.A. (BCS: CMPC) ( CMPC or the Company ) a leading large scale Latin American producer of pulp, tissue, wood & paper products, serving global and local markets, today announced its audited results for. HIGHLIGHTS Consolidated sales of US$1,271 million, up 2% QoQ and YoY. Market pulp sales volumes of 887,000 tons, up 11% QoQ and 18% YoY. Hardwood prices down 1% QoQ and 19% YoY, reaching CIF US$480/ton. Softwood prices down 1% QoQ and 6% YoY to CIF US$ 566/ton. EBITDA of US$220 million, down 17% QoQ and 30% YoY. Full year market pulp sales volumes of 3.2 million tons, up 28% YoY. Full year sales volumes of tissue paper and sanitary products of 645,000 tons and 5.3 million units, up YoY by 5% and 3%, respectively. Full year Tissue EBITDA of US$242 million, up 8% YoY, reaching 13.4% EBITDA margin. US$ Million 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY Sales 1,249 1,245 1,271 2% 2% 4,841 4,866 1% EBITDA % -30% 1, % EBITDA Margin 25% 21% 17% -4% -8% 23% 20% -13% Net Income (Loss) (162) -544% -298% (7) (18) -161% CAPEX % 3% % Total Assets 14,769 14,883 14,860 0% 1% 14,769 14,860 1% Net Debt 3,491 3,610 3,573-1% 2% 3,491 3,573 2% Market Capitalization 5,430 4,973 5,114 3% -6% 5,430 5,114-6% Closing Exchange Rate (CLP/US$) % -5% % Average Exchange Rate (CLP/US$) % -5% % Closing Exchange Rate (BRL/US$) % -17% % Average Exchange Rate (BRL/US$) % -14% % Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS). Results are expressed in millions of US$ dollars. 1

2 MANAGEMENT COMMENTARY 2016 was another strong year for CMPC, as we increased our production capabilities, expanded our market with the addition of operations in new geographical regions and continued to serve our local and global customer base. Over the course of 2016 we were faced with many challenges that were out of our control, including significant reductions in pulp prices, operational problems which led to lower production and higher costs, and currency headwinds that weighed on our financial results. Despite this, the Company was able to produce 2% growth at the consolidated sales level, both sequentially and annually. The success of our strategy can be seen in our operations, where we saw a full year increase in pulp production of 25%. This was largely due to the added production capacity from our Guaiba II mill. For the fourth quarter, Pulp sales were up by 7% from 3Q16, indicating an increase in sales volumes. While our Tissue sales were down on a sequential basis, there was improvement in both sales and EBITDA on a year on year basis. However, our Tissue division was where currency headwinds were the strongest during, and the quarter on quarter comparison was the least favorable. Despite these negative impacts, we re very pleased with the strides our Tissue division has made over the course of 2016, and remain very optimistic about the future of our operations in this business. Looking ahead to 2017, the Company is in a much stronger position than at the beginning of First, Pulp prices have rebounded, and while there is a delay in when we sell our pulp and when it hits our financials, we should start seeing the benefits in the coming quarters. Second, we ve made significant progress with our capital allocation strategy, which is focused on updating our Maule Mill to improve efficiencies, and developing our Cañete Tissue Mill in Peru, which on January 25 th, 2017 produced its first jumbo roll. Lastly, despite the headwinds during 2016 we were able to sustain our net debt level and we maintain our commitment to bring down debt ratios during the year supported by improved efficiencies and productivity, higher pulp prices and more stable currencies. REVIEW OF CONSOLIDATED RESULTS SALES Total Revenue was US$1,271 million for the quarter, 2% higher compared to 3Q16 and to 4Q15. Revenues by Business Revenues by Destination QoQ, revenues rose in the Pulp and Paper divisions. The Pulp business 37% benefited from higher pulp sales 47% volumes, as well as higher forest products prices. The increase in Paper sales is attributed to seasonally higher volumes related to the fruit season in Chile. By contrast, the depreciation of Pulp 16% Paper Tissue local currencies, as well as lower tissue paper and sanitary products volumes, contributed to lower sales in the tissue business measured in US dollars. 30% 49% 21% Domestic Sales Chile Export Sales Foreign Subsidiaries 2

3 YoY, the Tissue business benefitted from higher tissue paper and sanitary products volumes. By contrast, lower pulp prices more than offset the increase in pulp volumes throughout the year. Revenues Analysis to Third Parties QoQ Revenues Analysis to Third Parties YoY ,245 1,271 1, ,271 Sales 3Q16 Pulp + 41 Papers + 6 Tissue -21 Sales Sales 4Q15 Pulp -10 Papers -3 Tissue +34 Sales OPERATING COSTS Prices Volumes Operating Costs, excluding depreciation, stumpage and decrease due to harvest, were US$871 million, up 7% sequentially and 13% annually. The QoQ increase in costs was primarily due to higher costs in the Pulp division, reflecting increased pulp sales volumes and higher maintenance expenses compared to 3Q16. This was partly compensated by lower direct costs in the Tissue business. YoY, Operating Costs increased principally as a result of higher costs in the Pulp division, related to increased pulp and forestry volumes, as well as higher direct costs related to the appreciation of the Brazilian Real and the Chilean Peso. On a consolidated basis, Operating Costs in accounted for 69% of total sales, compared to 65% in 3Q16 and 62% in 4Q15. OTHER OPERATING EXPENSES Other Operating Expenses totaled US$180 million, up 8% compared to 3Q16 and 11% from 4Q15. The QoQ increase was mainly due to higher distribution costs in the Pulp division, resulting from higher sales volumes, as well as higher one-time expenses related to efficiency and productivity initiatives executed during. This was partially offset by lower administration expenses in the Pulp and Paper divisions. The YoY increase principally reflects higher distribution costs in the Pulp and Tissue divisions related to higher sales volumes, and higher expenses related to the above mentioned efficiency initiatives. Also, the appreciation of local currencies during the year negatively impacted SG&A. Lower administration expenses in the Pulp division partially offset these increases. Other Operating Expenses in were 14% of total revenues, compared to 13% reported in 3Q16 and in 4Q15. 3

4 EBITDA EBITDA totaled US$220 million during the quarter, down 17% QoQ and 30% YoY. Higher operating costs at the Pulp division and lower revenues in US$ Dollars at the Tissue division resulted in lower EBITDA contribution QoQ. YoY, lower EBITDA in the Pulp division, mainly due to lower pulp prices, and in the Paper division, as a result of lower sales volumes and prices, were the main drivers behind the decline in EBITDA. EBITDA by business 10% 25% 65% Pulp Paper Tissue EBITDA Variation by Business QoQ EBITDA Variation by Business YoY EBITDA 3Q16 Pulp Papers Tissue Holding & Others EBITDA EBITDA 4Q15 Pulp Papers Tissue Holding & Others EBITDA FINANCIAL RESULT Financial Expenses totaled US$52 million, decreasing 3% compared to 3Q16 and increasing 7% compared to 4Q15, mainly due to the fluctuation of the Brazilian Real. In addition, CMPC s Financial Income totaled US$2.2 million, up from US$1.9 million in 3Q16 and down from US$2.4 million in 4Q15. NET INCOME (LOSS) Net Loss of US$162 million, compared to Net Income of US$37 million in 3Q16 and US$82 million in 4Q15. Net Income Analysis QoQ Net Income Analysis YoY Net Income 3Q16 EBITDA Dep. & Net Biol. Stumpage Income Net Fin. Costs Other Non Oper. FX Diff. & Index. Results Net Income Net Income 4Q15 EBITDA Dep. & Net Biol. Stumpage Income Net Fin. Costs Other Non Oper. FX Diff. & Index. Results Net Income 4

5 Currency Exchange Rate Differences resulted in a US$10 million loss in the quarter, mainly related to the depreciation of the Chilean peso, compared to a US$1 million gain in 3Q16 and a US$21 million loss in 4Q15. Indexation Unit Results registered a US$242,000 loss in the quarter, compared to losses of US$860,000 in 3Q16 and US$9 million in 4Q15. Other Gains (Losses) resulted in a US$133 million loss. This includes the US$146 million provision to refund tissue consumers in Chile for overcharges. This line-item also includes non-core business revenues and other items, such as insurance deductible on losses, donations, and the relative effects of changes in the fair value of financial instruments including forwards, forward investments related to synthetic swaps, cross currency swaps and swaps, different from those under hedge accounting, among others. Income Taxes represented a loss of US$30 million in, representing declines of 3% compared to 3Q16 and 20% compared to 4Q15. The result for the quarter is mainly composed by a US$28 million income tax provision, a US$1 million gain from a lower deferred tax provision and a US$3 million loss related to the effect of currency exchange rate fluctuation on deferred taxes. It is important to note that as CMPC s tax accounting is in local currencies (except in Chile), the depreciation of these currencies, mainly the Brazilian Real, increases the tax base of assets measured in dollars, and therefore the Deferred Taxes account. DEBT In Million US$ 4Q15 3Q16 QoQ YoY (i) Current Interest-bearing Liabilities % 61% (ii) Non Current Interest-bearing Liabilities 3,775 3,859 3,836-1% 2% (iii) Other Obligations (35) (34) (34) -1% -5% Mark to Market of Derivatives Debt Instruments for Hedging (iv) Currencies and Interest Rates % -100% (v) Net Hedging Current Liabilities related to Debt Instruments (11) (21) (21) 0% 97% (vi) Net Hedging Non Current Liabilities related to Debt Instruments % -66% Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) ) 4,052 4,206 4,169-1% 3% Cash* % 6% Net Debt 3,491 3,610 3,573-1% 2% Average Cost of Debt in US$ 3.9% 4.2% 4.2% 0% 7% *Cash and cash equivalents + Term deposits within 90 to 360 days of maturity CMPC s Financial Debt was US$4,169 million as of December 31 st, 2016, down 1% compared to September 30 th, 2016, and up 3% from December 31 st, Net Financial Debt stood at US$3,573 million as of December 31 st, 2016, down 1% compared to September 30 th, 2016, but up 2% from December 31 st, Cash held by the Company totaled US$596 million as of December 31 st, 2016, stable QoQ and up 6% YoY. The YoY increase in the cash position is mainly explained by the lower level of capital expenditures during

6 Capital Expenditures Capital Expenditures during the quarter totaled US$140 million, decreasing 1% QoQ, and increasing 3% YoY. Capital expenditures during the quarter were mainly related to the Maule and Laja projects, as well as maintenance capex Q15 3Q16 Debt Breakdown Debt by Currency Debt by Type Debt by Interest Rate 3% 6%3% 14% 8% 6% 4% 88% 72% 96% USD CLP BRL Other Banks Bonds BNDES ECA Fixed Rate Floating Rate Amortization Schedule (1) 1, (2) / / /39 (1) This figure includes US$10 million related to mark-to-market of debt cross currency swaps. (2) The amortizations of 2017 include US$47 million related to accrued interests. FINANCIAL RATIOS The Net Debt/EBITDA ratio was 3.7x, up from 3.4x in 3Q16, and 3.2x in 4Q15. The Debt/Tangible Net Worth ratio was 0.53x, stable compared to 3Q16, but up from 0.52x in 4Q15. The Interest Coverage ratio was 4.66x, compared to 5.19x in 3Q16 and 5.94x in 4Q x Financial Ratio Evolution 5.19x 3.2x 3.4x 3.7x 4.66x 0.52x 0.53x 0.53x 4Q15 3Q16 Net Debt / EBITDA Debt / Tangible Net Worth Interest Coverage Ratio 6

7 US$/ton CIF REVIEW OF RESULTS BY BUSINESS PULP MARKET Global-100 Statistics showed that Market pulp demand ended the year on a high note, with a 3.9% increase in global market pulp demand (+2.2 million tons) during 2016; above the 2.5% growth posted in Supply increased by 3.8% (+2.35 million tons) in Geographically, China became the largest pulp player in 2016, representing one third of global demand (19.5 million tons). China accounted for all of the growth in market pulp during 2016 increasing 13.8% (+2.36 million tons). Most of the Paper & Board ( P&B ) industry in China enjoyed an excellent financial year in 2016, taking advantage of the monetary stimulus provided by the Government, and the resurgence of household consumption as an economic growth driver. Along with this, P&B supply was reduced by further environmental closures of obsolete capacities and the removal of industrial facilities located near urban centers. By grade, BHKP Global market pulp demand grew 4.1% in 2016 (+1.25 million tons), while BHKP Global market pulp capacity growth was 2.9% (+1 million tons). Furthermore, BSKP Global market pulp demand grew 3.3% (+810 thousand tons) over 2015 and BSKP production capacity grew at a 4.5% rate (+1.17 million tons). Global market pulp inventories at year-end were 36 days for hardwood and 30 days for softwood. Source: PPPC, World Chemical Market Pulp Global 100 Report December CMPC's average net pulp export price evolution Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 BSKP BEKP PULP BUSINESS During, Pulp & Forestry sales increased 7% QoQ, but were down 2% YoY. Pulp Sales & EBITDA In US$ Million 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY Pulp Sales % -2% 2,155 2,226 3% - Pulp Sales % -5% 1,614 1,703 6% - Forestry Sales % 11% % EBITDA % -38% % EBITDA Mg. 38% 30% 24% -600 bps -1,400 bps 35.8% 28.4% -700 bps 7

8 FORESTRY Third Party Sales Volumes 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY - Pulpwood % -11% % - Sawing Logs % 12% 1,686 1,705 1% - Sawn Wood % 32% % - Remanufactured Wood % 19% % - Plywood % 24% % - Others % -21% % Total (Th. m 3 ) 979 1,130 1,054-7% 8% 4,088 4,248 4% QoQ Forestry sales volumes to third parties decreased 7% mainly explained by the lower sales of pulpwood (-27%), due to lower sales in Chile and Argentina; and sawing logs (-15%), as a result lower sales in Chile and Brazil. This more than offset higher solid wood product volumes, which increased 15%, mainly due to higher sawn wood exports to the Middle East and Asia, as well as higher remanufactured wood and plywood sales to the US. Forestry volumes sold to third parties increased 8% YoY with higher volumes in most products. Solid wood products sales increased 28% annually mainly due to higher sawn wood exports to Asia and the Middle East as well as higher plywood and remanufactured wood sales to the US. The YoY increase in sawing logs is mainly attributed to higher sales in Chile. By contrast, pulpwood volumes decreased 11%, as a result of lower sales in our Argentine operations. Forestry average sale prices increased 14% QoQ and 10% YoY, mainly attributed to the change in product mix. PULP Production 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY BSKP (1) % 8% % BEKP % 11% 2,257 2,936 30% Total Pulp (th. Tons) % 10% 2,986 3,688 23% Papers (2) % 16% % (1) Includes UKP (2) Includes Sackraft produced in the Laja mill and Printing and Writing paper produced in the Guaiba mill Pulp production totaled 982 thousand tons during, increasing 5% QoQ and 10% YoY. Hardwood production totaled 789 thousand tons in, increasing 8% QoQ, due to higher production at the Guaíba mill after its scheduled maintenance in 3Q16. YoY, hardwood production increased 11%, with higher production at the Guaíba II mill. Softwood production totaled 194 thousand tons decreasing 6% QoQ explained by maintenance downtime at the Laja mill, and increased 8% YoY, mainly due to shorter maintenance downtime at the Laja mill this quarter. 8

9 Scheduled pulp plant maintenances were carried out at Laja (12 days) and Santa Fe I (12 days) during the quarter. Also, the scheduled maintenance downtime at Guaíba I, which started in September, ended on October 9 th. During 1Q17, the Company has scheduled maintenance downtime at Pacifico (12.5 days) and Santa Fe II (12 days). BEKP cash cost (3) reached US$179/ton during, decreasing 1% compared to 3Q16 and increasing 10% compared to 4Q15. The QoQ decrease is explained by lower use of chemical and energy partly offset by higher third party pulpwood prices. The YoY increase is mainly due to higher prices of pulpwood from third parties. BEKP Cash Cost (US$/ton) BSKP cash cost (3) reached US$307/ton during, increasing 9% compared to 3Q16 and 2% compared to 4Q15. The QoQ increase is related to higher energy and chemical costs due to the maintenance of the Laja mill during November, as well as higher pulpwood costs related to greater distance from forest to mill. The YoY increase is due to the one-time impact from costs derived from efficiency and productivity initiatives executed during. (3) Cash cost is calculated as: wood plus chemicals plus energy plus labor costs 4Q15 3Q16 BSKP Cash Cost (US$/ton) Q15 3Q16 Third Party Sales Volumes 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY BSKP % 3% % BEKP % 22% 1,855 2,565 38% Total Market Pulp (Th. Tons) % 18% 2,491 3,188 28% P&W Guaiba (Th. Tons) % -1% % Market pulp sales volumes increased 11% from 3Q16 and 18% from 4Q15. Softwood sales volumes increased 8% QoQ, due to higher exports to China and Latin America, and increased 3% YoY, driven by higher shipments to Europe. Hardwood volumes increased 11% QoQ, mainly due to higher exports to Asia, and 22% YoY, with higher exports to Asia, Europe and the U.S. Pulp average sales prices (including a small tonnage of P&W papers and energy sold to the SIC grid) decreased 3% QoQ and 24% YoY. The average effective net export price was CIF 566 US$/ton for softwood and CIF 480 US$/ton for hardwood. During, the price spread between the two fibers was CIF 87 US$/ton, compared with CIF 88 US$/ton in 3Q16. EBITDA for decreased 15% QoQ and 38% YoY. The QoQ decrease is mainly explained by higher costs related to higher pulp volumes and maintenance downtime expenses. The YoY decrease resulted mainly from declines in pulp prices of 6% for softwood and 19% for hardwood, which offset the 18% increase in pulp sales volumes. Higher costs related to maintenance downtimes in also impacted EBITDA. Administration expenses decreased both QoQ and YoY, but were partly offset by higher expenses related to efficiency initiatives implemented during. 9

10 TISSUE BUSINESS In, Tissue sales decreased 4% from 3Q16, but increased 8% YoY to US$463 million. Tissue Sales & EBITDA In US$ Million 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY Sales % 8% 1,796 1,803 0% EBITDA % 3% % EBITDA Mg. 12.6% 16.2% 12.0% -420 bps -60 bps 12.5% 13.4% +90 bps Third Party Sales Volumes 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY - Chile % 6% % - Brazil % 5% % - Mexico % 27% % - Argentina % 7% % - Peru % 6% % - Uruguay % 6% % - Colombia % 14% % - Ecuador % 13% % Total Tissue Paper (Th. Tons) % 10% % - Diapers % 12% 2,767 2,987 8% - Feminine Care % 15% 1,240 1,342 8% - Others % -13% 1, % Total Sanitary (M. Units) 1,243 1,372 1,333-3% 7% 5,151 5,318 3% Tissue Paper sales volumes decreased 1% from 3Q16 and increased 10% from 4Q15. QoQ, higher sales volumes in Mexico, Brazil and Peru were mainly offset by lower volumes in Chile and Argentina. YoY, volumes benefitted from increases across all countries in which CMPC operates. It is important to highlight the 27% YoY increase in volumes in Mexico following the startup of the Altamira mill in 3Q15. Sanitary Products sales volumes decreased 3% QoQ, but increased 7% YoY. The QoQ decrease was mainly driven by lower diaper volumes across all countries of operations, except Brazil and Ecuador. This was partially offset by higher feminine care products, mainly in Chile and Argentina. The YoY increase was driven by higher diaper and feminine care products in all countries except Peru. Average sales prices (measured in US Dollars) decreased sequentially by 4% for tissue paper and 2% for sanitary products. The decrease in prices is mainly due to the negative impact from the depreciation of local currencies during the fourth quarter. EBITDA in decreased 29% QoQ and increased 3% YoY. The sequential decline in EBITDA is mainly due to lower tissue paper and diaper volumes, as well as the negative effect of the depreciation of local currencies. Higher SG&A also impacted EBITDA. This was partly offset by a decline in direct costs, related to lower fiber, chemical and energy costs. The YoY increase in EBITDA is attributed to higher tissue paper and diaper volumes together with higher prices in local currencies. This was partly compensated by higher SG&A expenses. 10

11 PAPER BUSINESS In, Paper sales increased 3% QoQ and decreased 1% YoY to $209 million. Papers Sales & EBITDA In US$ Million 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY Sales % -1% % EBITDA % -32% % EBITDA Mg. 14.5% 11.2% 10.0% -120 bps -450 bps 15.0% 13.1% -180 bps Third Party Sales Volumes 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY - Boxboard % -3% % - Paper Bags % -1% % - Other Papers % 4% % - Corrugated Paper % -2% % - Corrugated Boxes % -3% % - Molded Pulp Trays % 13% % Total (Th. Tons) % -1% % On a sequential basis, sales volumes to third parties increased 5%. This was mainly explained by higher volumes of corrugated boxes (+32%), driven by the fruit season in Chile and higher volumes of salmon boxes, and corrugated paper (+14%), explained by higher exports to Latin America. This was offset by sales volumes declines in boxboard (-5%), due to lower production because of the second phase of the Maule project, paper bags (-9%) related to lower sales in Chile, Argentina, Peru and Mexico, and molded pulp trays (-26%), driven by a decrease in apple and eggs trays. Sales volumes to third parties in declined 1% YoY as a result of lower volumes of boxboard (- 3%), related to lower exports to the U.S. and Latin America partly compensated by higher exports to Europe, corrugated boxes (-3%), due to lower volumes of industrial and salmon boxes, corrugated papers (-2%) related to lower exports to Latin America and paper bags (-1%) driven by lower sales volumes in Argentina, Peru and Mexico. This was partly compensated by higher molded pulp trays volumes (+13%), due to an increase in avocado trays. Average sale prices decreased 2% QoQ and were stable YoY. The QoQ change is driven by lower prices for most products. EBITDA in decreased 8% from 3Q16 and 32% from 4Q15. During, two corrugated paper machines, with an added capacity of 45,000 tons per year ceased to operate. The write-off of spare parts for these machines negatively impacted expenses in the quarter. The QoQ decrease in EBITDA is also explained by the lower sales of boxboard and molded pulp trays, as well as higher expenses related to efficiency and productivity initiatives introduced in. This was partly compensated by higher corrugated boxes revenues. YoY, the decrease is also related to lower boxboard and corrugated paper revenues. 11

12 RELEVANT EVENTS Maule Mill Modernization Project: The second stage of the Maule mill modernization project was completed in November This stage contemplated the installation of drying capacity, technological improvements and product control, as well as changes in some equipment due to obsolescence. The project will be completed during the second half of 2017, implying a 25% increase in production capacity. As of December 31 st 2016, the project remains on budget, with 70% of the investment disbursed and 97% already allocated. Following this modernization, the Maule mill will become of the most modern mills worldwide, highly efficient, focused on high quality products, and with a positive impact on the environment. SUBSEQUENT EVENTS Startup of Tissue Machine in Cañete Mill: the new double width tissue paper machine in the Cañete mill produced its first jumbo roll on January 25 th, 2017, ahead of schedule. The new 54,000 tons/year tissue machine brings CMPC Tissue Peru with a total capacity of 133,000 tons/year. The total investment for the project, which included the tissue machine, conversion lines, storage and distribution, was US$140 million. Chilean Tissue Case: On January 27th, CMPC Tissue agreed with the mediation table formed by the National Consumer Service (SERNAC), National Consumer and Users Corporation, Consumers Association (CONADECU) and the Organization of Consumers and Users of Chile (ODECU) the payment of $97,647 million Chilean pesos, equivalent to approximately US$150 million at the date of the agreement, as a restitution to consumers by amounts unduly or in excess paid, as a result of the facts denounced by the National Economic Prosecutor (FNE) in the Chilean tissue market Forest Fire Season in Chile: During the last two weeks of January, CMPC experienced forest fires in its plantations, which have affected 19,000 hectares of CMPC s land. On March 9 th 2017, the Board of Directors agreed to record a loss of approximately US$41 million as a result of the damage to plantations. 12

13 About CMPC Empresas CMPC produces forestry, pulp, paper, tissue and packaging products throughout Latin America. The Company aims to deliver world-class products, from forestry to finished products, to its global customer base. Its high quality timber and production facilities are strategically located in countries including Chile, Brazil, Argentina, Mexico, Peru, Colombia, Uruguay and Ecuador, hiring more than 17 thousand direct employees, making CMPC a truly regional company with a competitive cost structure. The Company sells more than 25 different product lines in more than 45 countries, always seeking long-term relationships. Forward-Looking Statements This earnings release may contain forward-looking statements. Such statements are subject to risks and uncertainties that could cause Empresas CMPC s actual results to differ materially from those set forth in the forward-looking statements. These risks include: market, financial and operational risks. All of them are described in CMPC s Financial Statements, Note 3 ( Gestión de Riesgos ). In compliance with the applicable rules, Empresas CMPC S.A. publishes this document on its web site ( and sends to the Superintendencia de Valores y Seguros the Financial Statements of the Company and its corresponding notes, which are available for consultation and review on its website ( 13

14 FINANCIAL TABLES FOLLOW BALANCE SHEET Figures in Th. US$ 4Q15 3Q16 QoQ YoY Current Assets 3,138,378 3,270,978 3,185,487-3% 2% Cash and Cash Equivalents 510, , ,843 0% 17% Operative Receivables 927, , ,363-1% -5% Inventories 1,066,528 1,118,820 1,100,937-2% 3% Biological Assets 415, , ,835-17% -18% Tax Assets 120, , ,261 6% 75% Other Current Assets 97,860 60,494 61,248 1% -37% Non Current Assets 11,630,833 11,611,674 11,674,424 1% 0% Intangible Assets, Different from Goodwill 14,559 14,379 14,466 1% -1% Goodwill 107, , ,401 0% 5% Property, Plant and Equipment, Net 7,922,139 7,957,334 7,946,073 0% 0% Biological Assets 3,107,430 3,045,962 3,115,934 2% 0% Deferred Tax Assets 46,942 50,102 46,792-7% 0% Other Non Current Assets 432, , ,758 2% 1% TOTAL ASSETS 14,769,211 14,882,652 14,859,911 0% 1% Current Liabilities 1,062,188 1,078,424 1,286,613 19% 21% Other Financial Liabilities 252, , ,472 6% 50% Operative Liabilities 673, , ,446 8% -2% Other Current Liabilities 136, , , % 84% Non Current Liabilities 5,779,105 5,688,949 5,596,945-2% -3% Other Financial Liabilities 3,942,151 3,952,465 3,894,562-1% -1% Deferred Tax Liabilities 1,714,020 1,595,036 1,594,046 0% -7% Other Non Current Liabilities 122, , ,337-23% -12% Non Controlling Participations 3,983 4,011 3,125-22% -22% Equity Attributable to the Owners of the Controller 7,923,935 8,111,268 7,973,228-2% 1% TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 14,769,211 14,882,652 14,859,911 0% 1% Balance Sheet numbers are based on CMPC's quarterly financial data, which is presented to the "Superintendencia de Valores y Seguros" (SVS). 14

15 INCOME STATEMENT Figures in Th. US$ 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY Sales 1,249,475 1,245,389 1,271,083 2% 2% 4,841,141 4,865,737 1% Operating Costs (1) (774,184) (814,201) (870,996) 7% 13% (3,117,381) (3,229,264) 4% Operating Margin 475, , ,087-7% -16% 1,723,760 1,636,473-5% Other Operating Expenses (2) (162,698) (166,991) (180,419) 8% 11% (624,753) (670,265) 7% EBITDA ( 3) 312, , ,668-17% -30% 1,099, ,208-12% EBITDA Margin (%) 25% 21% 17% 3% -5% 23% 20% -13% Depreciation, Amortizations and Stumpage (140,790) (144,172) (145,701) 1% 3% (491,186) (568,479) 16% Increase in Biological Assets due to Forests Growth and Price Effects 75,398 42,522 42,337 0% -44% 264, ,623-35% Decrease in Biological Assets due to Harvest (54,783) (59,009) (55,826) -5% 2% (197,082) (210,982) 7% Operating Income 192, ,538 60,478-42% -69% 675, ,370-47% Financial Expenses (48,259) (53,471) (51,726) -3% 7% (187,032) (209,430) 12% Financial Income 2,446 1,850 2,206 19% -10% 11,059 9,977-10% Share Results in Associated Companies (76) -950% -232% 177 (64) -136% Foreign Exchange Difference (20,647) 1,374 (9,555) -795% 54% 5,776 (44,493) 870% Indexation Unit Results (8,888) (860) (242) 72% 97% (15,415) (4,234) 73% Other Gains (Losses) 1,861 12,871 (133,480) -1137% -7274% (76,095) (146,704) 93% Income Taxes (37,146) (28,787) (29,773) -3% -20% (420,849) 17, % Net Income (Loss) 81,960 36,523 (162,168) -544% -298% (6,980) (18,193) -161% (1) Operating Costs are calculated as: Costs of Sales minus Stumpage minus Decrease in Biological Assets due to Havest minus Depreciation (2) Other Operating Expenses are calculated as: Distribution Costs plus Administration Expenses plus Other Functional Expenses (3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses 15

16 CASH FLOW STATEMENT Figures in Th. US 4Q15 3Q16 QoQ YoY 12M15 12M16 YoY Cash Flow from Operating Activities 301, , ,059 0% -39% 845, ,408-15% Cash collection from operating activities Collections from sales of goods and services delivered 1,360,467 1,377,144 1,378,785 0% 1% 5,279,966 5,429,616 3% Other cash collections from operating activities 122,018 60,626 75,434 24% -38% 310, ,257-24% Payments for operating activities Payments to suppliers for goods and services (1,053,043) (1,051,332) (1,042,779) -1% -1% (4,068,293) (4,092,314) 1% Payments to and on behalf of employees (60,302) (106,789) (122,268) 14% 103% (400,441) (428,090) 7% Payments for premiums, benefits, annuities, and other obligations derived from suscribed policies (21,642) (356) (24,262) 6715% 12% (21,972) (25,507) 16% Other payments from operating activities (30,679) (59,648) (36,395) -39% 19% (136,734) (222,847) 63% Net cash flows from (used in) operating activities 316, , ,515 4% -28% 962, ,115-7% Income taxes paid (reimbursed) (15,606) (34,557) (43,456) 26% 178% (117,121) (174,707) 49% Cash Flow from Investment Activities (188,041) (130,579) (137,653) -5% 27% (876,987) (452,442) -48% Amounts obtained from the sale of property, plant and equipment % 25% 5, % Purchases of property, plant and equipment (99,942) (103,757) (114,580) 10% 15% (722,879) (440,547) -39% Cash obtained from the sale of intangible assets 1, (96) -200% -106% 4, % Purchases of other long-term assets (37,816) (28,561) (23,905) -16% -37% (82,171) (84,831) 3% Payments of future contracts, forwards, options and swaps (49,521) (34,510) (15,977) -54% -68% (121,527) (70,129) -42% Collections of future contracts, forwards, options and swaps 8,101 33,352 14,574-56% 80% 80,462 81,817 2% Interest received 2,413 2,100 2,231 6% -8% 10,416 9,271-11% Other cash inflows (outflows) (12,881) - - 0% -100% (51,267) 51, % Cash Flow from Financing Activities (128,720) (101,424) (45,947) 55% 64% (515,241) (187,409) -64% Proceeds raised through short-term loans 73,439 29,049 70, % -4% 385, ,399-37% Proceeds raised through long-term loans 54,210 3,807 7, % -86% 155, ,560 47% Proceeds raised through loans 127,649 32,856 77, % -39% 541, ,959-13% Loans reimbursements (209,138) (91,859) (73,803) -20% -65% (847,493) (435,065) -49% Dividends paid (99) (129) (27) -79% -73% (30,014) (36,322) 21% Interest paid (47,079) (42,292) (50,047) 18% 6% (178,752) (185,981) 4% Other cash inflows (outflows) (53) (53) % Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change (15,548) (46,915) 1, % 91% (546,786) 80, % Effects of variation in the exchange rate on cash and cash equivalents (3,413) (2,433) (1,641) 167% 52% (39,883) 4, % Net increase (decrease) in cash and cash equivalents (18,961) (49,348) (182) 100% 99% (586,669) 85, % Cash and cash equivalents at beginning of period 529, , ,025-8% 13% 1,097, ,356-53% Cash and cash equivalents at end of period 510, , ,843 0% 17% 510, ,843 17% Term deposits within 90 to 360 days of maturity , % Total Cash at the end of the period 510, , ,843 0% 17% 561, ,843 6% 16

17 INCOME STATEMENT DATA BY BUSINESS UNIT FULL YEAR 2016 Business Areas (Operating Segments) Pulp Paper Tissue Total Other (3) Adjustments & Eliminations Total CMPC In th. US$ Operating income from external customers 2,226, ,113 1,803,248 4,865, ,865,737 Operating income between operating segments of the same entity 274,442 31,411 2, ,100 44,633 (352,733) - Income from External and Related Customers 2,500, ,524 1,805,495 5,173,837 44,633 (352,733) 4,865,737 Cost of Sales (2,351,316) (727,722) (1,237,474) (4,316,512) (1,254) 309,041 (4,008,725) Distribution Costs (66,967) (22,241) (148,973) (238,181) - 5,779 (232,402) Administrative Costs (89,473) (42,847) (75,883) (208,203) (62,745) 39,305 (231,643) Raw Materials an Supplies Used (1,492,060) (634,591) (1,177,781) (3,304,432) (1,223) 289,515 (3,016,140) Employee Benefit Expenses (171,763) (88,856) (222,754) (483,374) (25,891) - (509,265) Depreciation & Amortization Expense (331,004) (50,497) (58,366) (439,867) (5,218) 7,181 (437,904) Interest Income 4,220 7,171 2,683 14, ,195 (216,292) 9,977 Interest Expense (203,027) (14,460) (50,648) (268,135) (157,587) 216,292 (209,430) Other Significant Income (Expense) Items (10,577) (4,883) (166,035) (181,495) 35,713 (922) (146,704) Total Other Significant Income (Expense) Itms (209,384) (12,172) (214,000) (435,556) 90,321 (922) (346,157) Share in Income of Associates (64) - - (64) - - (64) Income Tax (Charge) Credit 111,939 (14,909) (29,746) 67,284 (49,899) - 17,385 EBITDA Determined by Segment (1) 632, , , ,345 (14,265) (3,872) 966,208 Operating Profit (Loss) (2) 132,497 59, , ,544 (19,483) 3, ,370 Profit (Loss) Before Taxes (186,180) 43,147 22,125 (120,908) 32,969 52,361 (35,578) Profit (Loss) (74,241) 28,238 (7,621) (53,624) (16,930) 52,361 (18,193) FULL YEAR 2015 Business Areas (Operating Segments) Adjustments Total CMPC In th. US$ Pulp Paper Tissue Total Other (3) & Eliminations Operating income from external customers 2,155, ,551 1,796,098 4,841, ,841,141 Operating income between operating segments of the same entity 328,480 60,697 2, ,583 46,023 (437,606) - Income from External and Related Customers 2,483, ,248 1,798,504 5,232,724 46,023 (437,606) 4,841,141 Cost of Sales (2,138,534) (783,164) (1,257,103) (4,178,801) (1,315) 374,467 (3,805,649) Distribution Costs (51,076) (24,734) (154,992) (230,802) - 7,931 (222,871) Administrative Costs (81,325) (40,345) (68,455) (190,125) (60,363) 42,578 (207,910) Raw Materials an Supplies Used (1,407,751) (691,359) (1,197,428) (3,296,538) (1,279) 354,768 (2,943,049) Employee Benefit Expenses (160,077) (82,512) (221,433) (464,022) (23,659) - (487,681) Depreciation & Amortization Expense (273,845) (45,098) (58,618) (377,561) (3,479) 7,355 (373,685) Interest Income 2,357 8,020 4,460 14, ,806 (215,584) 11,059 Interest Expense (171,880) (15,704) (49,163) (236,747) (165,869) 215,584 (187,032) Other Significant Income (Expense) Items (31,652) 2,399 (23,257) (52,510) (42,649) 19,063 (76,095) Total Other Significant Income (Expense) Itms (201,175) (5,285) (67,960) (274,420) 3,288 19,063 (252,068) Share in Income of Associates Income Tax (Charge) Credit (347,567) (33,378) (28,068) (409,013) (11,836) - (420,849) EBITDA Determined by Segment (1) 771, , ,137 1,129,675 (12,220) (18,448) 1,099,007 Operating Profit (Loss) (2) 447,356 88, , ,192 (15,699) (11,093) 675,400 Profit (Loss) Before Taxes 448,429 90,965 (52,549) 486,845 8,851 (81,827) 413,869 Profit (Loss) 100,862 57,587 (80,617) 77,832 (2,985) (81,827) (6,980) (1) Corresponds to gross profit plus depreciation and amortization, plus cost of formation of harvested plantations, plus higher cost of the exploited and sold part of the plantations derived from revaluation for their natural growth (Biological Assets), less distribution costs, less administrative expenses and less other expenses, by function. (2) Corresponds to profits (losses) before income tax expense, finance income and costs, foreign currency translation differences, income from indexation units, other profits (losses) and income of associates. (3) Corresponds to the operations of Empresas CMPC S.A., Inversiones CMPC S.A., Servicios Compartidos CMPC S.A. and Portuaria CMPC S.A. not included in the main segments. 17