ARAUCO - NA Arauco Journey to Michigan Michigan...

ARAUCO-NAMichigan BioForest Conference

Arauco

JourneytoMichigan

OurMission

2

Sustainability Arauco

•  GlobalForestCompany–  SustainablyManagedforests–  MarketPulp–  Panels(plywood,compositepanels)–  SawnTimber(lumber)–  Energy

•  HeadquarteredinSan=ago,Chile

•  4millionAcresofFSCPlanta=ons

•  CommiEedtoSustainableandVer=callyIntegratedGrowthWorldWide.

AraucoataGlance

ApproximateAnnualSalesU.S.$5.2Billion(USD)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

619 610 632

800 851 884 932 948 994 1,0071,024 1,0201,0151,0021,024

4

TheHistoricBaseforGROWTHinSouthAmerica.

►  LARGESTOWNEROFFORESTRYLANDintheSouthernCone–1.6millionhectaresofland

►  StrategicallylocatedplantaQons

►  IdealcondiQonsforforestsgrowth–FASTGROWTHRATEANDSHORTHARVESTCYCLE

►  Efficientforestmanagement,guaranteeingthesustainabilityoftheoperaQons

►  LOWFORESTOPERATINGCOSTS

►  AdopQonofSTRICTENVIRONMENTALPOLICIEStowardholdingsofnaQveforests

(in‘000hectares)

Arauco’sPlanta=ons

Includesplanta-onsinChile,Argen-na,BrazilandUruguay

Forestry

RadiataPine 16-18YearRotaQonEucalyptus 12-14YearRotaQon

28%

33%3%

32%

5%CANADA

USA

HOLLAND

BRAZIL

ARGENTINACHILE

PERU

COLOMBIA

MEXICO

CHINA

JAPAN

AUSTRALIA

%ofTotalSales

SalesOffices

WESELLTOOVER70COUNTRIES

SAUDIARABIA

5

CANADA

USA

BRAZIL

ARGENTINA

CHILEURUGUAY

SOUTHAFRICA

WEPRODUCEIN10COUNTRIES

6

PORTUGALSPAIN

GERMANY

AraucoGlobalOpera=onalFootprint

Panels - Arauco has become the second biggest panel producer in the world

327,000TrucksperYear900TrucksperDay

13X

4,900,000,000SquareFeetofPanelProducts

WithoutMichigan!!

Kevin Shotbolt Vice President Sales & Marketing ARAUCO – North America | 80 Tiverton Court, Suite 701, Markham, ON   L3R 0G4 office: 905.752.5275 | fax: 905.752.5276 | cell: 416.918.2407 | toll free: 800.268.9830 kevin.shotbolt@arauco-na.com |  www.arauco-na.com

RegionalVolumeBeforeMichigan(BSF)

RegionalVolumeAferMichigan(BSF)

Sustainability

Arauco-NA

Par=cleboard(PB)andMediumDensityFiberboard(MDF)

ParQcleboard

MDF

TFL-MelamineLaminaQon

SupportCenter

TFL–PaperTreaQng

AraucoNALoca=ons

ParQcleboardMDF

AraucoNAPanelMills

WheredoesallthatPBandMDFgo?

16

SustainabilityJourneytoMichigan

Par=cleboardinNorthAmerica–AStoryofRegionalImbalance

RawMaterial

Customers

TeamMembers(Culture)

Energy

Land&

Infra-Structure

TechnicalTraining

CriQcalElementsToDriveSuccess

$325,000,000

$400,000,000

Investment

ImportantCustomersinCloseProximity

Minnesota

Wisconsin

Iowa

Illinois Indiana Ohio

Michigan

Complimentarycustomersinimportantindustriesnearby:

•  Michigan

•  Ohio

•  Wisconsin

•  Indiana

•  Iowa

•  Illinois

•  Minnesota

•  EasternCanada

RawMaterialSupply

HardwoodSawmillandForestResidueChipsSofwoodandHardwoodRoundwoodSofwoodSawmillandForestResidueChipsSofwoodSawmillResidueSawdustPoplarSawmillandForestResidueChipsOnSiteChippingforRoundwood.Woodwillbesuppliedbylocalsawmillsandotherareawoodsuppliers.

RecycledWood–AnOp=on

ARecipeforSuccess!

Technologicalcapability

ValueAddStrategy

ExperiencedManagement

Long-termvision

Commitment

Financialdepth

Woodavailability

Strongregionalcustomerbase(LogisQcsAdvantage)

LandandInfrastructure

OtherRawMaterialandEnergy

TeamMembersandTechTraining

OpenforBusiness

Arauco’sStrengths: Michigan’sStrengths:

+

23

Sustainability OurMission

AraucoGraylingPBMill

Scaleproduc=onfacility–Largestsinglelineopera=on

Besttechnologyintheworld

Valueadd-TFL

Successfulpartnershipswithsupplypartnersandcustomers

Useofhighperformanceworksystems

Engagedandcompe==veteammates

Buildandoperatethemostefficientpar=cleboardopera=onintheworld

Createacceptablereturnforshareholders

Providelongtermemploymentforthecommunity

Beanac=veandvaluedmemberofournewcommunity

WHATweintendtoaccomplish

HOWweintendtoaccomplishit

TheHighLevelSchedule

Groundbreaking April122017MobilizationandConstructionofficessetuponsite April12017Vendorequipmentstartstoshowuponsite May302017StartofVendorequipmenterection Jun302017ComissioningandStartup Mar152018FirstBoard Jun1820183shiftoperation August142018

Thanksforyour=me

JakeElston

VPofOpera=ons

AraucoNA

jake.elston@arauco-na.com