CHILE - Arauco, one of the largest global wooden panel manufacturers, reported sales revenues of USD 1,594.0 million in the 4Q-2022, a decrease of 8.5% when compared to the 4Q-2021 .

This variation is mostly explained by lower revenues in the wood products division.

Sales revenues for the year reached USD 7,102.1 million, an increase 11.8% compared to 2021 USD 6,349.8 million.

Adjusted EBITDA in the 4Q-2022 was 39.5% lower than in the 4Q-2021, totalling USD 387.6 million. Adjusted EBITDA for the year reached USD 2,166.8  million, a decrease 13.1% compared to 2021.

Arauco´s net income for the 4Q-2022 was -USD 177.6 million, a decrease of USD 393.9 million compared to the 4Q-2021.

Sales volume of wooden panels in the 4Q-2022 decreased 13.5% when compared to the previous quarter and  average sales prices decreased 5.6%.

During the fourth quarter, volumes and prices were affected, specially in MDF, due to an increase in exports volumes from Brazil to the rest of the region. Moreover, due to higher inflation and rates, depreciation of currencies, high stocks and political uncertainty in some countries, demand continued weakening.

Since the beginning of February, multiple forest fires have been affecting various locations in which we operate, such as

Maule, Ñuble, Biobío, Araucanía and Los Rios regions. Arauco has approximately 47,000 hectares of productive forestry plantations potentially affected by the fires in the area where they occurred.