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1 Fourth Quarter 2017 Earnings Results 4Q17 Earnings Conference Call Date: March 9, 2018 Time: 8:00 AM ET US Toll Free: Intl. Dial In: Webcast: click here Investor Relations Contacts Colomba Henríquez + (56) Joaquín Cuadra joaquin.cuadra@cmpc.cl + (56) Agustina Mussolini agustina.mussolini@cmpc.cl + (56) ir.cmpc.cl CMPC Reports 2017 Fourth Quarter Results Santiago de Chile, Chile, March 8, 2018 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 4Q17. 4Q17 HIGHLIGHTS Consolidated sales of US$1,312 million, down 2% QoQ and up 3% YoY. Pulp production of 865,000 tons, up 21% QoQ and down 12% YoY. Guaíba II resumed production on November 6, The downtime resulted in a reduction of approximately 145,000 tons in production and approximately 240,000 tons in sales during 4Q17. Hardwood prices up 13% QoQ and 45% YoY, reaching CIF US$694/ton. Softwood prices up 18% QoQ and 31% YoY to CIF US$ 742/ton. EBITDA of US$256 million, decreasing 21% QoQ and increasing 15% YoY. Full year Sales of US$5,143 million, up 6% YoY. Full year EBITDA of US$1,078 million, up 11% YoY. Full year Free Cash Flow of US$429 million, up from US$19 million in Net Debt of US$3,198 million, down 1% QoQ and 11% YoY. Net Debt to EBITDA ratio reached 3.0x, down from 3.1x in 3Q17 and 3.7x in 4Q16. US$ Million 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY Sales 1,271 1,338 1,312-2% 3% 4,866 5,143 6% EBITDA % 15% 970 1,078 11% EBITDA Margin 17.5% 24.1% 19.5% -458 bps 199 bps 19.9% 21.0% 104 bps Net Income (Loss) (162) % 104% (18) % CAPEX % 9% % Total Assets 14,860 15,421 14,951-3% 1% 14,860 14,951 1% Net Debt 3,573 3,229 3,198-1% -11% 3,573 3,198-11% Market Capitalization 5,114 6,595 8,495 29% 66% 5,114 8,495 66% Closing Exchange Rate (CLP/US$) % -8% % Average Exchange Rate (CLP/US$) % -5% % Closing Exchange Rate (BRL/US$) % 2% % Average Exchange Rate (BRL/US$) % -2% % 1

2 MANAGEMENT COMMENTARY The fourth quarter of 2017 provided satisfactory closure to a year where we had to rely on the disciplined execution of our strategic plan to overcome the many operating difficulties we faced. We can say that our drive to have a revenue base that is both more diversified and with more value-added products, supported by a solid capital structure, are the main reasons behind our results. Market conditions continue to be supportive, as they were throughout the year. Unfortunately, we were not able to fully capture the benefits from the current pricing environment, but the different initiatives we implemented to counter the forced stoppage in Guaíba II partly compensated the impact of the resulting reduction in production. This situation was finally solved in November, with the re-start of Guaíba II, which is currently operating at capacity and without problems. We also continued to pursue a very caution capital deployment strategy, favoring the preservation of cash. With yet another solid quarter of cash generation, with particularly strong execution on the working capital, our capital structure continues to strengthen and leverage, measured by the ratio of net debt to EBITDA, declined to 3.0 times, despite some marginal increase on Capex in the quarter. We saw this ratio improving in every quarter of 2017, demonstrating our commitment to our investment grade. With most of our major projects already completed and Guaíba II operating normally since the startup by mid quarter, we believe that we should be well positioned to enjoy the supportive market conditions into REVIEW OF 4Q17 CONSOLIDATED RESULTS SALES Total Revenue was US$1,312 million for the quarter, down 2% compared to 3Q17, but up 3% compared to 4Q16. Sales by Business 4Q17 Sales by Destination 4Q17 QoQ, revenues were affected by the 7% 22% 30% and 6% decrease in Papers and Tissue, 36% respectively, partly offset by the 3% 49% increase in Pulp sales. Tissue was affected by lower tissue paper and sanitary products volumes across most 15% 48% countries in which we operate, as well as lower prices in U.S. Dollars. Papers was Domestic Sales Chile Pulp Paper Tissue mainly affected by lower boxboard Export Sales Foreign Subsidiaries volumes during the quarter. On the other. side, the better pricing in both hardwood and softwood pulp completely offset the lower hardwood volumes. YoY revenue growth is explained by increases of 7% in Pulp and of 4% in Tissue, partly compensated by the 8% decrease in Papers. Higher pulp prices, in addition to higher tissue paper prices, completely offset the decrease in hardwood and boxboard volumes during the quarter. 2

3 Revenues Analysis to Third Parties QoQ Revenues Analysis to Third Parties YoY Sales 3Q17 Pulp + 21 Paper -14 Tissue -33 Sales 4Q17 Sales 4Q16 Pulp + 40 Paper -16 Tissue +17 Sales 4Q17 Prices Volumes OPERATING COSTS Operating Costs, excluding depreciation, stumpage and decreases due to harvest, were US$874 million, up 5% sequentially and 1% annually. The QoQ change is mainly related to higher maintenance costs in the Pulp business, with downtime in Guaíba, Santa Fe I and Laja. This was partly compensated by the lower direct costs, as a result of lower sales volumes in most business areas. YoY, higher maintenance costs in the Pulp division and higher direct costs in the Tissue division, related to higher pulp prices, were compensated by lower direct costs in the Pulp business related to lower sales volumes. Consolidated Operating Costs in 4Q17 were 67% of total sales, up from 62% in 3Q17, but down from 68% in 4Q16. OTHER OPERATING EXPENSES Other Operating Expenses totaled US$182 million, up 1% both sequentially and annually. The QoQ increase is mainly attributed to slightly higher administrative expenses. Partly offsetting this impact we had lower distribution costs in the Pulp division as a result of the lower hardwood and solid wood products sales volumes during the quarter. The YoY increase was also due to slightly higher administrative expenses in all business divisions. Also there were higher SG&A in Tissue. This was partly offset by lower distribution costs in the Pulp division, related to lower sales volumes. Consolidated Other Operating Expenses in 4Q17 were 14% of total revenues, compared with 13% reported in 3Q17 and 14% in 4Q16. EBITDA EBITDA totaled US$256 million during the quarter, down 21% QoQ, but up 15% YoY. EBITDA margin of 19.5%, down from 24.1% in 3Q17 and up from 17.5% in 4Q16. The lower sequential EBITDA resulted from decreased EBITDA in all business divisions, with US$29 million (-43%) decrease at the Tissue division, US$25 million (-10%) decrease at the Pulp division, and US$12 million (-50%) decrease at the Paper division. In particular, the QoQ decrease in EBITDA reflected lower hardwood volumes, as well as higher pulp maintenance expenses. Also, there were.. 3

4 lower seasonal volumes, increased fiber costs and higher SG&A expenses in the Tissue division, and lower boxboard volumes in the Paper division. The 15% YoY increase in EBITDA was mainly due to a US$67 million (46%) increase in Pulp EBITDA, partially offset by the US$10 million (-45%) decline in Paper EBITDA and US$18 million (-32%) decrease in Tissue EBITDA. Higher Pulp EBITDA reflects increased pulp prices and softwood volumes, while the lower Tissue EBITDA reflects higher fiber costs and SG&A expenses. Also, the decrease in Papers EBITDA is mainly related to lower boxboard volumes. EBITDA by Business 4Q17 5% 14% 81% Pulp Paper Tissue EBITDA Variation by Business QoQ EBITDA Variation by Business YoY EBITDA 3Q17 Pulp Papers Tissue Holding & Others EBITDA 4Q17 EBITDA 4Q16 Pulp Papers Tissue Holding & Others EBITDA 4Q17 FINANCIAL RESULT Financial Expenses totaled US$55 million, down 2% compared to 3Q17 and 1% compared to 4Q16. The YoY increase is mainly explained by the US$500 million bond issuance in April, CMPC s Financial Income totaled US$3 million, down from US$10 million in 3Q17 but up from the US$2.2 million in 4Q16. The QoQ decrease is mainly explained by US$5.3 million equivalent to the registration of the accrued interest of the amount of sales tax paid in excess from previous years by CMPC Tissue Brazil during 3Q17. The YoY increase is mainly explained by the higher level of cash held by the Company. NET INCOME (LOSS) CMPC reported a Net Income of US$6 million in 4Q17, compared to a Net Income of US$89 million in 3Q17 and a Net Loss US$162 million in 4Q16. Net Income Analysis QoQ Net Income Analysis YoY (162) 89 Net Income 3Q17-66 EBITDA Dep. & Net Biol. Stumpage Income -5 Net Fin. Costs -8 Other Non Oper. (1) -8 FX Diff. & Index. Results 6 Net Income 4Q17 Net Income 4Q EBITDA -10 Dep. & Net Biol. Stumpage Income +1 Net Fin. Costs Other Non FX Diff. & Oper. (1) Index. Results Net Income 4Q17 (1) Other Non Operating includes: Share Results in Associated Companies, Other Gains (Losses) and Income Taxes. 4

5 Currency Exchange Rate Differences resulted in a US$8.3 million loss in the quarter, compared to a loss of US$0.7 million in 3Q17 and a loss of US$9.6 million in 4Q16. The quarterly loss is mainly explained by the appreciation of the Chilean peso. Indexation Unit Results registered a US$740,000 loss in the quarter, compared to US$60,000 gain in 3Q17 and US$242,000 loss in 4Q16. Other Gains (Losses) resulted in a US$20 million loss. The line-item includes US$26 million non-cash provision related to forest fires in Chile during the first quarter of the year, also it includes US$17 million related to the insurance reimbursement for the loss due to forest fires during 1Q17. Other Gains (Losses) may also include 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, swaps (different from those under hedge accounting), among others. Income Taxes represented a loss of US$11 million in 4Q17, compared to a gain of US$15 million in 3Q17 and a loss of US$30 million in 4Q16. The result for the quarter is mainly composed by a US$20 million income tax provision, US$45 million loss from a higher deferred tax provision and a US$36 million loss related to the effect of currency exchange rate movement on deferred taxes. As CMPC s tax accounting is in local currencies (except in Chile), the depreciation of these currencies against the US dollar, particularly the Brazilian Real, decreases the tax base of assets measured in dollars, and therefore increases the Deferred Taxes account. CAPITAL EXPENDITURES Capital Expenditures in 4Q17 totaled US$153 million, increasing 22% QoQ and 9% YoY. These capital expenditures are mainly related to forestry maintenance, and disbursements related to the Maule, Laja, and Cañete project. Also, the repairs of the recovery boiler of the Guaíba II mill accounted for approximately US$43 million during the quarter. (1) Capital Expenditures includes Value Added taxes. Capital Expenditures (1) Q16 3Q17 4Q17 FREE CASH FLOW Free Cash Flow reached US$18 million in 4Q17, compared to US$177 million in 3Q17 and US$62 million in 4Q16. The main drivers behind the lower free cash flow generation, both QoQ and YoY, were the increase in capex as well as the increase in financial expenses. Also, there was a lower EBITDA generation QoQ. US$ Million 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY EBITDA % 15% % (-) Capex (140) (126) (153) 22% 9% (558) (498) -11% (-) Dividends (0) (0) (0) - - (36) (5) -87% (-) Net Financial Expenses (49) (34) (67) 97% 37% (178) (193) 8% (-) Income tax (43) (18) (14) -20% -67% (175) (69) -60% (+/-) Working Capital Variation (3) -111% -105% (4) % Free Cash Flow % -70% % 0 5

6 DEBT In Million US$ 4Q16 3Q17 4Q17 QoQ YoY (i) Current Interest-bearing Liabilities % -8% (ii) Non Current Interest-bearing Liabilities 3,836 3,798 3,759-1% -2% (iii) Other Obligations (34) (32) (32) -1% -5% (iv) Net Hedging Current Liabilities related to Debt Instruments (21) (8) (6) -22% -70% (v) Net Hedging Non Current Liabilities related to Debt Instruments 36 3 (14) -493% -139% Total Debt ( (i) + (ii) + (iii) + (iv) + (v) ) 4,169 4,593 4,031-12% -3% Cash* 596 1, % 40% Net Debt 3,573 3,229 3,198-1% -11% *Cash and cash equivalents + Term deposits within 90 to 360 days of maturity CMPC s Financial Debt was US$4,031 million as of December 31 st, 2017, down 12% compared to September 30 th, 2017, and 3% compared to December 31 st, The QoQ decrease in total debt is related to the 2018 US$500 million bond redeemed on October 20 th, Cash held by the Company totaled US$833 million as of December 31 st, 2017, representing a 39% decrease QoQ, but a 40% increase YoY. The change in cash is mainly explained by the US$500 million bond issuance in April, 2017, as well as US$500 million bond paid in October Also, YoY explained by a positive free cash flow generation. Net Financial Debt stood at US$3,198 million as of December 31 st, 2017, down 1% compared to September 30 th, 2017, and 11% compared to December 31 st, Debt Breakdown Debt by Currency Debt by Type Debt by Interest Rate 4% 4% 3% 12% 7% 7% 2% 89% 74% 98% USD CLP BRL Other Banks Bonds BNDES ECA Fixed Rate Floating Rate 6

7 Amortization Schedule ,262 1,314 (1) / / /2040 1) The figure of 2018 include US$221 million in amortizations and US$35 million related to accrued interests. 197 FINANCIAL RATIOS The Net Debt/EBITDA ratio in 4Q17 was 3.0x, down from 3.1x in 3Q17 and 3.7x in 4Q16. The Debt/Tangible Net Worth ratio was 0.51x, down from 0.57x in 3Q17 and 0.53x in 4Q16. The Interest Coverage ratio was 5.00x, compared to 4.83x in 3Q17 and 4.60x in 4Q16. REVIEW OF RESULTS BY BUSINESS Financial Ratio Evolution 4.60x 4.83x 5.00x 3.7x 3.1x 3.0x 0.53x 0.57x 0.51x 4Q16 3Q17 4Q17 Net Debt / EBITDA Debt / Tangible Net Worth Interest Coverage Ratio PULP MARKET The year ended on a high note according to GLOBAL-100 Statistics: Bleached Kraft (BKP) market pulp demand grew 3.8% YoY (+2.21 million tons),above the 2.8% trend rate for this Century. Chinese market pulp demand remained leading global BKP demand with an 8.0% growth (+1.52 million tons), but demand from the Rest of the World also grew last year 1.8% (+685,000 tons). By grades, Bleached Softwood pulp scored a 2.5% YoY demand growth (trend 1.8%) while Bleached Hardwood pulp demand grew at a 4.9% YoY growth rate (3.8%). While Demand and Capacity show a balanced progress through the year, major supply disruptions induced a shortage feeling in the market that kept pushing prices up. The good news in 2017 was that China is no longer the only regional market where pulp demand is growing. However, it is still remarkable that Chinese market pulp demand kept growing at a 8.0% rate last year (+13.5% in 2016). According to official statistics, Paper&Paperboard (P&PB) production in China grew 3.1% YoY (+3.77 million tons in 2017), probably the highest rate in the last 5 years. Most of this growth was in market pulp consuming segments, which along with supplyside/environmental reforms promoted by the Chinese Government increased the market pulp average consumption rate per ton of P&PB produced last year. A weaker US dollar and an improved global economic outlook have contributed to a tighter supply/demand balance and helped to improve pulp prices across all regional markets, albeit at slower pace than in China. It should be borne in mind that, as a general rule, pulp prices move within a band defined by the recovered paper prices in the lower limit and the paper prices in the upper one. P&PB market conditions seemed to be healthier in China, Japan and Other Asian markets than in Western countries, where, despite the significant production curtailments implemented by our customers in the past, they still face difficulties in transferring the higher pulp prices to their paper consumers. Source: PPPC, World Chemical Market Pulp Global 100 Report December

8 PULP BUSINESS During 4Q17, Pulp & Forestry sales increased 3% QoQ, and 7% YoY, reaching US$639 million. Pulp Sales & EBITDA In US$ Million 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY Pulp Sales % 7% 2,226 2,406 8% - Pulp Sales % 14% 1,703 1,902 12% - Forestry Sales % -18% % EBITDA % 46% % EBITDA Mg. 24.1% 38.2% 33.1% -512 bps 925 bps 28.5% 33.2% 477 bps FORESTRY Third Party Sales Volumes 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY - Pulpwood % -51% % - Sawing Logs % -12% 1,705 1,574-8% - Sawn Wood % -29% % - Remanufactured Wood % -27% % - Plywood % -23% % - Others % -49% % Total (th. m 3 ) 1, % -32% 4,248 3,402-20% Forestry sales volumes to third parties decreased 15% QoQ mainly explained by a decrease of 7% in remanufactured wood, as a result of lower exports to the US, 1% decrease in pulpwood, explained by lower sales in Brazil and a 2% decrease of sawing logs in Chile due to higher intercompany sales. This was partly compensated by an increment of 27% in sawn wood, as a result of higher sales volume in Chile and 8% in plywood, driven by higher sales in Chile as well. 4Q17 Forestry volumes sold to third parties decreased 32% YoY with lower volumes in all products explained by the following factors: pulpwood (-51%), due to lower sales in Chile and Argentina, sawn wood (-29%), as a result of lower sales in Chile, remanufactured wood (-27%), as a result of lower volumes in Chile, plywood (-23%), driven by lower exports in Latin America and in the US, and sawing logs (-12%), due to higher intercompany sales in Chile and lower sales volumes in Argentina. Forestry average sale prices decreased 11% QoQ, related to lower solid wood products prices and a change in the product mix, and increased 12% YoY, related to higher prices in most products. PULP Production 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY BSKP (1) % 3% % BEKP % -16% 2,936 2,555-13% Total Pulp (th. Tons) % -12% 3,688 3,339-9% Papers (2) % -19% % (1) Includes UKP (2) Includes Sackraft produced in the Laja mill and P&W paper produced in the Guaiba mill 8

9 During 4Q17, the Company carried out scheduled maintenance downtimes at Guaíba I (15 days) and Santa Fe I (15 days) and Laja (15 days). For 1Q18, the Company has scheduled maintenance downtime at Santa Fe II (11 days) and Pacifico (12 days). It is worth noting that the Guaíba II mill resumed operations on November 6, 2017, after being halted for 105 days, and is currently operating at nominal capacity. Pulp production totaled 865 thousand tons during 4Q17, increasing 21% QoQ and decreasing 12% YoY. Hardwood production totaled 666 thousand tons in 4Q17, increasing 29% QoQ but decreasing 16% YoY. Both the QoQ and YoY changes are related to the Guaíba II mill stoppage, which resulted in approximately 145 thousand tons production loss during the quarter, compared to 245 thousand tons in 3Q17. Softwood production totaled 199 thousand tons decreasing 1% QoQ, mainly as a result of the maintenance downtime of Laja, and increasing 3% YoY, driven by higher production in both Laja and Pacifico mills. BEKP cash cost (3) reached US$205/ton during 4Q17, stable QoQ and increasing 15% YoY. The QoQ results were mainly due higher pulpwood prices, related to a longer transportation distance, and also higher costs, related to the Santa Fe I and Guaíba I maintenance downtimes. YoY, the increase is mainly explained by higher costs in Brazil, associated to the Guaíba I and Guaíba II stoppage, and higher pulpwood and chemical costs in Chile mainly associated to longer transportation distance and higher caustic soda prices, respectively. BSKP cash cost (3) reached US$311/ton during 4Q17, decreasing 1% compared to 3Q17 and increasing 1% compared to 4Q16. The QoQ decrease is mainly due to lower chemical costs in the Pacífico mill, this was partly compensated by an increase in pulpwood costs and higher costs in Laja related to the maintenance downtime. YoY, there was an increase in pulpwood costs related to longer transportation distance and higher energy costs related to higher oil prices. (3) Cash cost is calculated as: wood plus chemicals plus energy plus materials plus labor costs. 179 BEKP Cash Cost (US$/ton) Q16 3Q17 4Q17 BSKP Cash Cost (US$/ton) Q16 3Q17 4Q17 Third Party Sales Volumes 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY BSKP % 1% % BEKP % -25% 2,565 2,326-9% Total Market Pulp (Th. Tons) % -20% 3,188 3,005-6% P&W Guaiba (Th. Tons) % -34% % Market pulp sales volumes decreased 5% from 3Q17 and 20% from 4Q16. Softwood sales volumes decreased 8% QoQ, mainly explained by lower exports to China, and increased 1% YoY, with higher exports to Europe and the Rest of Asia offsetting the decrease in exports to China. Hardwood volumes decreased 4% QoQ and 25% YoY, as a result of lower exports to most markets. It is important to note that the Guaíba II stoppage during 4Q17 resulted in a reduction in BEKP sales of approximately 240,000 tons during the quarter. 9

10 US$/ton CIF CMPC's average net pulp export price evolution Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 BSKP BEKP Pulp average sales prices (including a small tonnage of P&W papers and energy sold to the SIC grid) increased 14% QoQ and 43% YoY. The average effective net export price was CIF 742 US$/ton for softwood and CIF 694 US$/ton for hardwood. During 4Q17, the price spread between the two fibers was CIF 48 US$/ton, compared with CIF 15 US$/ton in 3Q17. EBITDA for 4Q17 decreased 10% QoQ and increased 46% YoY. EBITDA margin of 33.1%, decreasing from 38.2% in 3Q17 but increasing from 24.1% in 4Q16. Lower hardwood volumes, related to the Guaíba II downtime, together with higher maintenance expenses, as well as lower forestry sales were the main causes of the QoQ decrease in EBITDA. These were partly offset by higher pulp prices, with increase of 15% in hardwood and 18% in softwood. The YoY increase resulted mainly from the 45% increase in softwood prices and the 31% increase in hardwood prices. Partly offsetting this impact lower hardwood sales volumes, higher pulp cash costs and higher maintenance and administrative expenses. TISSUE BUSINESS In 4Q17, Tissue sales decreased 6% from 3Q17 and increased 4% from 4Q16 to US$480 million. Tissue Sales & EBITDA In US$ Million 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY Sales % 4% 1,803 1,923 7% EBITDA % -32% % EBITDA Mg. 12.0% 13.0% 7.9% -509 bps -405 bps 13.5% 11.2% -225 bps 10

11 Third Party Sales Volumes 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY - Chile % 2% % - Brazil % -1% % - Mexico % 3% % - Argentina % -8% % - Peru % 2% % - Uruguay % -5% % - Colombia % 4% % - Ecuador % -8% % Total Tissue Paper (Th. Tons) % 0% % - Diapers % 2% 2,987 3,043 2% - Feminine Care % -6% 1,342 1,324-1% - Others % -26% % Total Sanitary (M. Units) 1,333 1,347 1,265-6% -5% 5,318 5,200-2% Tissue Paper sales volumes decreased 4% from 3Q17 and was stable YoY. QoQ, sales volumes were affected by a seasonal decrease across all countries of operations, except from Brazil and Chile. YoY sales volumes were benefitted by increases in Peru, Mexico, Chile and Colombia completely offset by decreases in Argentina, Uruguay, Brazil and Ecuador. Sanitary Products sales volumes decreased 6% from 3Q17 and 5% from 4Q16. Driving the QoQ decrease was lower diaper volumes across all countries except from Chile, as well a lower feminine care products in Argentina, Uruguay, Peru, Brazil and Colombia, partially offset by higher volumes in Ecuador and Chile. YoY, lower feminine care sales volumes in Argentina, Uruguay, Colombia and Chile, as well as lower wet wipes volumes across all countries contributed to the decrease in sales volumes. This was partly offset by higher diaper volumes in Argentina, Brazil and Chile. Average sales prices (measured in US Dollars) decreased sequentially by 1% for tissue paper and by 6% for sanitary products and annually increased by 7% for tissue paper and decreased 5% for sanitary products. The QoQ decrease is related to lower prices in local currencies in most countries partly compensated by the positive effect of the appreciation of the Chilean peso. The YoY increase for tissue paper is mainly related to higher prices in local currencies and the appreciation of local currencies, with the exception of the Argentinean Peso, while the decrease in sanitary products is related to lower prices in Argentina, Mexico and Ecuador. EBITDA in 4Q17 decreased 43% QoQ and 32% YoY. EBITDA margin was 7.9% in 4Q17, below the 13% in 3Q17 and the 12% reported in 4Q16. The sequential decrease in EBITDA is mainly due to lower tissue paper and sanitary products sales volumes, as well as lower average prices measured in U.S. dollars. Also, there was increase in fiber costs and SG&A expenses. The YoY decrease in EBITDA is attributed to lower sanitary products revenues, higher direct costs, related to the increase in pulp prices, and SG&A expenses. These were partly offset by the increase in tissue paper prices. 11

12 PAPER BUSINESS In 4Q17, Paper sales decreased 7% QoQ and 8% YoY to US$193 million. Papers Sales & EBITDA In US$ Million 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY Sales % -8% % EBITDA % -45% % EBITDA Mg. 10.4% 11.6% 6.2% -534 bps -419 bps 13.2% 10.6% -265 bps Third Party Sales Volumes 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY - Boxboard % -26% % - Paper Bags % 2% % - Other Papers % 14% % - Corrugated Paper % -3% % - Corrugated Boxes % 0% % - Molded Pulp Trays % 4% % Total (Th. Tons) % -9% % Sales volumes to third parties decreased 9% QoQ mainly explained by lower volumes of boxboard (- 35%), related to the 23 days downtime in the Maule mill during the quarter, molded pulp trays (-24%), due to lower apple trays, and lower paper bags volumes (-10%), driven by lower sales in Mexico and Peru. These were partly offset by higher sales of corrugated boxes (+38%) and corrugated papers (+14%), both mainly driven by the start of the fruit season in Chile. Sales volumes sold to third parties decreased 9% YoY as a result of lower volumes of boxboard (-26%), mainly explained by the lower production in the Maule mill, and corrugated paper (-3%), explained lower exports. These were partly offset by higher volumes of molded pulp trays (+4%), driven by lower apple trays and paper bags (+2%), as a result of higher sales in Chile and Argentina. Average sale prices increased 2% both QoQ and YoY. The QoQ and YoY change was mainly due to higher prices corrugated paper and corrugated boxes as well as a change in the product mix. EBITDA in 4Q17 decreased 50% from 3Q17 and 45% from 4Q16. EBITDA margin was 6.2% in 4Q17, compared with 11.6 % in 3Q17 and 10.4% in 4Q16. The sequential decrease in EBITDA is mainly related to the lower boxboard volumes, as a result of the lower production because of the last stage of the Maule project, which also resulted in higher operating costs. Also there were higher administration expenses during the quarter. This was partly offset by higher corrugated paper and corrugated boxes sales during the quarter. YoY, the decrease in EBITDA is also explained by lower boxboard volumes, in addition to higher operating costs, mainly as a result of increased in fiber costs, and higher administration expenses. 12

13 RELEVANT EVENTS Guaíba II Insurance: On October 6 th, 2017, CMPC s Board of Director s informed through a material fact that they acknowledged a letter issued by the insurer Mapfre Seguros Gerais S/A, where it reports its rejection of coverage for the Guaíba II incident. Together with expressing its absolute disagreement with the terms of the letter and the basis of that decision, the Board of Directors instructed the administration to take all necessary legal actions to collect the indemnities contracted in the policies. Inversiones CMPC 2018 US$500 million 144A-S bond: on October 20 th, 2017, Inversiones CMPC redeemed the 2018 US$500 million 144A-S bond at par value. This bullet note had a 4.75% coupon and the maturity date was January 19 th, 2018 with the option to redeem it at par 3 months prior to its due date. Maule Mill Modernization Project: The third and final stage of the Maule mill modernization project was completed in November This stage contemplated the modification of the wet end, a new automated pope (reel), improvements in processes and the possibility of achieving higher speeds with the update of the drive. This project will increase the mill s production by 25% and will position the mill as one of the most modern worldwide, with high efficiency, oriented to high quality products and with a positive impact on the environment. Guaíba II Restarts Operations: On November 6 th, 2017, one week ahead of schedule, the Guaíba II line started its operations. The mill rapidly achieved its production standards and has operated normally since. The second stoppage resulted in a loss of approximately 400,000 tons in production. Provisional Dividend for December: On December 22 nd, 2017, CMPC s Board of Director s announced through a material fact that they had agreed not to distribute the provisional dividend contemplated for December in the dividend policy informed to the ordinary shareholders meeting in April The above is based on the fact that the profits showed by the Company on the Financial Statements as of the third quarter of 2017, are heavily exposed to exchange rate fluctuations of the currencies in which CMPC has accounted a significant part of its assets and the impact of that variation on the deferred tax provision. As established in the aforementioned policy, the Board of Directors will propose to the Shareholders Meeting that pronounces on the 2017 financial statements, the distribution of a definite dividend. Tissue Collusion Case: The Chilean Antitrust Court (TDLC) announced on December 29 th, 2017, its decision regarding the action filed by the National Economic Prosecutor s Office (FNE) in October 2015, for collusion in Chilean local market of toilet paper and other tissue products against SCA and CMPC Tissue. The verdict recognized CMPC s immunity as for the successful fulfillment of the requirements of its leniency application.. 13

14 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 ( 14

15 FINANCIAL TABLES FOLLOW BALANCE SHEET Figures in Th. US$ 4Q16 3Q17 4Q17 QoQ YoY Current Assets 3,189,533 3,846,451 3,380,074-12% 6% Cash and Cash Equivalents 595,843 1,363, ,754-39% 40% Operative Receivables 877, , ,772 5% -13% Inventories 1,104,983 1,183,815 1,227,635 4% 11% Biological Assets 338, , ,922-10% -6% Tax Assets 211, , ,509 13% -7% Other Current Assets 61,248 47,182 43,482-8% -29% Non Current Assets 11,670,378 11,574,112 11,570,727 0% -1% Intangible Assets, Different from Goodwill 14,466 14,601 16,581 14% 15% Goodwill 112, , ,333-2% -1% Property, Plant and Equipment, Net 7,946,073 7,913,202 7,921,750 0% 0% Biological Assets 3,115,934 3,187,023 3,181,105 0% 2% Deferred Tax Assets 46,792 58,713 68,337 16% 46% Other Non Current Assets 434, , ,621-5% -38% TOTAL ASSETS 14,859,911 15,420,563 14,950,801-3% 1% Current Liabilities 1,288,795 1,819,301 1,449,387-20% 12% Other Financial Liabilities 377, , ,128-61% -11% Operative Liabilities 657, , ,131 11% 19% Other Current Liabilities 253, , ,128 25% 32% Non Current Liabilities 5,594,763 5,457,488 5,416,932-1% -3% Other Financial Liabilities 3,894,562 3,824,327 3,781,090-1% -3% Deferred Tax Liabilities 1,594,046 1,518,473 1,519,509 0% -5% Other Non Current Liabilities 106, , ,333 1% 10% Non Controlling Participations 3,125 1,346 2,366 76% -24% Equity Attributable to the Owners of the Controller 7,973,228 8,142,428 8,082,116-1% 1% TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 14,859,911 15,420,563 14,950,801-3% 1% Balance Sheet numbers are based on CMPC's quarterly financial data, which is presented to the "Superintendencia de Valores y Seguros" (SVS). 15

16 INCOME STATEMENT Figures in Th. US$ 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY Sales 1,271,083 1,338,322 1,311,992-2% 3% 4,865,737 5,143,074 6% Operating Costs (1) (867,826) (835,448) (873,975) 5% 1% (3,226,094) (3,357,897) 4% Operating Margin 403, , ,017-13% 9% 1,639,643 1,785,177 9% Other Operating Expenses (2) (180,194) (180,012) (181,625) 1% 1% (670,040) (706,890) 5% EBITDA ( 3) 223, , ,392-21% 15% 969,603 1,078,287 11% EBITDA Margin (%) 17.5% 24.1% 20% 151 bps 291 bps 19.9% 21.0% 69 bps Depreciation, Amortizations and Stumpage (145,701) (146,470) (135,486) -7% -7% (568,479) (564,314) -1% Increase in Biological Assets due to Forests Growth and Price Effects 42,337 29,462 23,479-20% -45% 172, ,158-19% Decrease in Biological Assets due to Harvest (55,826) (47,854) (47,047) -2% -16% (210,982) (196,650) -7% Operating Income 63, ,000 97,338-38% 52% 362, ,481 26% Financial Expenses (55,121) (55,864) (54,634) -2% -1% (212,825) (219,485) -3% Financial Income 2,206 9,556 3,186-67% 44% 9,977 18,376 84% Share Results in Associated Companies (76) (1) (10) -900% 87% (64) (4) 94% Foreign Exchange Difference (9,555) (729) (8,327) -1042% 13% (44,493) (8,780) 80% Indexation Unit Results (242) 60 (740) -1333% -206% (4,234) (1,659) 61% Other Gains (Losses) (133,480) (37,576) (19,807) 47% 85% (146,704) (126,818) 14% Income Taxes (29,773) 15,223 (10,880) -171% 63% 17,385 (16,528) -195% Net Income (Loss) (162,168) 88,669 6,126-93% 104% (18,193) 102, % Net Income (Loss), attributable to owners of the parent (161,287) 88,650 5,113 (1) 1 (17,332) 103,345 (7) Net Income (Loss), attributable to non-controlling interest (881) 19 1, % 215% (861) (762) (0) (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 16

17 CASH FLOW STATEMENT Figures in Th. US 4Q16 3Q17 4Q17 QoQ YoY 12M16 12M17 YoY Cash Flow from Operating Activities 153, , ,040-33% 40% 688,867 1,070,000 55% Cash collection from operating activities Collections from sales of goods and services delivered 1,388,239 1,456,275 1,437,654-1% 4% 5,439,070 5,776,200 6% Other cash collections from operating activities 38, ,373 74,555-41% 94% 197, ,353 61% Payments for operating activities Payments to suppliers for goods and services (1,046,730) (1,052,232) (1,075,703) 2% 3% (4,096,265) (4,213,278) 3% Payments to and on behalf of employees (122,268) (118,979) (121,103) 2% -1% (428,090) (466,408) 9% Payments for premiums, benefits, annuities, and other obligations derived from suscribed policies (24,262) (1,760) (16,229) 822% -33% (25,507) (22,489) -12% Other payments from operating activities (36,395) (70,090) (69,827) 0% 92% (222,847) (253,030) 14% Net cash flows from (used in) operating activities 196, , ,348-33% 16% 863,574 1,139,348 32% Income taxes paid (reimbursed) (43,456) (17,928) (14,309) -20% -67% (174,707) (69,348) -60% Cash Flow from Investment Activities (145,398) (116,090) (160,572) 38% 10% (460,187) (473,843) 3% Amounts obtained from the sale of property, plant and equipment 100 1, % -82% 894 1,177 32% Purchases of property, plant and equipment (113,838) (100,395) (130,879) 30% 15% (439,805) (403,524) -8% Cash obtained from the sale of intangible assets (96) Purchases of other long-term assets (23,905) (24,925) (21,852) -12% -9% (84,831) (82,232) -3% Payments of future contracts, forwards, options and swaps 54,152 (14,369) 30, % -44% - (4,622) - Collections of future contracts, forwards, options and swaps (67,243) 18,688 (41,737) -323% 38% Interest received 5,432 4,984 3,980-20% -27% 12,472 15,588 25% Other cash inflows (outflows) % - 51,083 1,322-97% Cash Flow from Financing Activities (38,660) (112,335) (562,106) 400% 1354% (180,122) (340,110) 89% Proceeds raised through short-term loans 70, ,796 83,899-82% 20% 334, , % Proceeds raised through long-term loans 7,758 (209,280) (0) , , % Proceeds raised through loans 77, ,516 83,899-67% 8% 469,959 1,253, % Loans reimbursements (61,897) (322,750) (574,602) 78% 828% (423,159) (1,378,290) 226% Dividends paid (27) (22) (32) 50% 20% (36,322) (4,776) -87% Interest paid (54,666) (39,123) (71,370) 82% 31% (190,600) (208,442) 9% Other cash inflows (outflows) - (957) (0) (2,349) - Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change (30,540) 94,232 (507,638) -639% 1562% 48, , % Effects of variation in the exchange rate on cash and cash equivalents (1,641) 9,636 8,271-14% 604% 4,930 12, % Net increase (decrease) in cash and cash equivalents (32,181) 103,868 (499,367) -581% -1452% 53, , % Cash and cash equivalents at beginning of period 596,025 1,227,727 1,331,595 8% 123% 510, ,844 10% Total Cash at the end of the period 563,844 1,331, ,228-38% 48% 563, ,228 48% 17

18 INCOME STATEMENT DATA BY BUSINESS UNIT December, 2017 Business Areas (Operating Segments) Pulp Paper Tissue Total Other (3) Adjustments & Eliminations Total CMPC In th. US$ Operating income from external customers 2,405, ,060 1,923,392 5,143, ,143,074 Operating income between operating segments of the same entity 270,383 28, ,673 39,102 (338,775) - Income from External and Related Customers 2,676, ,895 1,923,847 5,442,747 39,102 (338,775) 5,143,074 Cost of Sales (2,335,151) (731,628) (1,346,187) (4,412,966) (0) 294,105 (4,118,861) Distribution Costs (42,177) (20,501) (174,283) (236,961) - 6,053 (230,908) Administrative Costs (99,475) (42,967) (88,983) (231,425) (57,354) 37,160 (251,619) Raw Materials an Supplies Used (1,545,278) (639,758) (1,264,699) (3,449,735) - 279,649 (3,170,086) Employee Benefit Expenses (199,232) (89,589) (257,931) (546,752) (20,284) - (567,036) Depreciation & Amortization Expense (322,730) (51,058) (77,803) (451,591) (5,377) 7,668 (449,300) Interest Income 2,045 4,182 8,812 15, ,258 (173,921) 18,376 Interest Expense (164,098) (7,613) (53,122) (224,833) (168,573) 173,921 (219,485) Other Significant Income (Expense) Items (90,019) (5,270) (43,176) (138,465) 13,825 (2,178) (126,818) Total Other Significant Income (Expense) Itms (252,072) (8,701) (87,486) (348,259) 22,510 (2,178) (327,927) Share in Income of Associates (4) - - (4) - - (4) Income Tax (Charge) Credit (6,612) (7,577) (1,231) (15,420) (1,108) - (16,528) EBITDA Determined by Segment (1) 798,022 86, ,868 1,099,144 (13,576) (7,281) 1,078,287 Operating Profit (Loss) (2) 303,786 35, , ,047 (18,953) ,481 Profit (Loss) Before Taxes 55,995 33, , , ,539 (192,377) 119,111 Profit (Loss) 49,383 26, , , ,431 (192,377) 102,583 December, 2016 Business Areas (Operating Segments) Adjustments Total CMPC In th. US$ Pulp Paper Tissue Total Other (3) & Eliminations 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 (2,349,643) (726,863) (1,236,880) (4,313,386) (1,210) 309,041 (4,005,555) Distribution Costs (66,967) (22,241) (148,973) (238,181) - 5,779 (232,402) Administrative Costs (89,473) (42,836) (75,883) (208,192) (62,531) 39,305 (231,418) 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 (170,090) (87,986) (222,160) (480,237) (25,633) - (505,870) 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 (204,700) (15,330) (51,242) (271,272) (157,845) 216,292 (212,825) Other Significant Income (Expense) Items (10,577) (4,883) (166,035) (181,495) 35,713 (922) (146,704) Total Other Significant Income (Expense) Itms (211,057) (13,042) (214,594) (438,693) 90,063 (922) (349,552) 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) 634, , , ,482 (14,007) (3,872) 969,603 Operating Profit (Loss) (2) 134,170 60, , ,681 (19,225) 3, ,765 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) 18