LEADERSHIP

We are a diversified financial holding company involved, through its subsidiaries and affiliates, in different sectors of activity. Historically, the parent company was engaged in the distribution of liquid fuels, which was transferred in October 2003 to a new subsidiary that encompasses the assets related to this business. Today, Empresas Copec’s investments are concentrated on two major areas: energy and natural resources.

A group of these companies sells fuels required by productive sectors, households and transport, which are strongly related to the growth and development of the country.

On the other hand, our strong presence in the forestry and fishing industries, and the interest in venturing into mining, are a consequence of the strategic vision of our Company, which seeks to participate in those sectors of activity where Chile has clear competitive advantages.

The position achieved by Empresas Copec, one of the major economic groups in Chile, is the result of an efficient cost structure, continued commercial effort and a conservative financial profile.

EFFICIENCY

Empresas Copec’s production operations are primarily concentrated in Chile, a country that enjoys a climate that allows for rapid growth and short harvesting cycle of conifer species; which has more than 4,000 km of generous coasts, with waters that have ideal temperatures for the extraction of pelagic species; and whose imposing mountain range is rich in high grade ores. All these aspects are key for the development of industries such as Empresas Copec, focused on the development of natural resources.

This generous nature combined with the development of production facilities close to the main shipping points helps to compensate for the relative remoteness of Chile from its top export destinations.

An increasingly global world, and where the Company must compete with top-level foreign companies, forces companies to optimize their operations and be close to technological frontiers, leading their evolution.

Empresas Copec has carried out major investment programs, which have helped increase the scale of operations significantly, thereby achieving significant cost reductions, increasing efficiency and having strong competitive positions to overcome the ups and downs of industries that are cyclic by its nature.

Additionally, Empresas Copec has constantly expanded its product and business lines, expanding in a timely manner into new lines of business that have synergy with the existing ones and in which its experience can be used.

Empresas Copec’s investment is always inspired by a long-term vision, seeking to develop and manage its activities sustainably and committed to its environment, in the broadest sense.

COMMERCIAL EFFORT

Empresas Copec operates today without borders, exporting its products to more than 80 countries on five continents. If participating in international markets is very difficult today, leading them is an even greater challenge.

Internally, the successful competition with the top companies in the fuel business has made Copec a leading company in that market, and a special case internationally.

The products exported by the Company have achieved a strong position in the most demanding foreign markets, as a result of their orientation towards quality and their adherence to compliance with international standards.

The growing presence of Copec companies in foreign markets also responds to a diversification goal. To reduce exposure to swings in these markets, we have constantly sought to open new markets and also encourage the development of higher value-added products. Thus, diversification has not been only geographical. It has also extended to the range of products sold and the origins of their inputs, seeking to limit their dependence on any of them specifically.

A cornerstone in Empresas Copec successful sales has been our approach to service quality, the result of the continued effort of highly specialized commercial teams. Whether in our representative offices around the world, or at the outlets in the most remote locations of the country, our people share the same thrust, drive and creativity to bring Empresas Copec’s products to homes, commerce, transport and industry.

A continued effort to innovate allows the Company to be at the forefront in quality of service, in order to meet, in the best possible way, the comprehensive needs of each of our customers, implicitly strengthening the commercial brands of our companies.

FUNDING CAPACITY

A distinctive feature of Empresas Copec is our conservative policy regarding debt levels. Besides allowing us to face times of greater difficulty successfully, this strategy aims to ensure that resources are available at all times to be invested in a timely manner. Together with the significant cash generation capacity of its own businesses, low debt levels allow Empresas Copec to take better advantage of market opportunities, facilitating the investment process and obtaining new resources when necessary.

This way, we have managed to generate high and growing cash flows, allowing us to finance our investment plan and distribute significant dividends.

THE SAME SPIRIT

Today Empresas Copec is a company that displays positive numbers in its financial statements, leads the industries where it participates, enjoys a solid reputation and brand power, and is in a unique position to continue contributing to its shareholders, its employees and the country.

This position has been forged thanks to shared values and principles for all subsidiaries, which have inspired its management throughout these eight decades of business.

A distinctive component of this style of doing business is its long-term vision. Empresas Copec invests in areas that can offer an attractive return on a broad horizon. For this, it is essential to make decisions reflectively, constantly work for excellence in its activities and ensure business sustainability.

The last point has always been, according to Empresas Copec, key to achieving our objectives. Sustainability requires incorporating the interests of all parties involved in decision making. Shareholders, authorities, employers and communities must live within a framework of respect and aligned interests. For that purpose, it is also key that decisions be informed to all parties in an exact, timely and transparent manner.

This is the spirit that distinguishes each of Empresas Copec subsidiaries, and that is empowered through our management systems and our people. The corporate governance structures and personnel policies are oriented towards the integration of ethical and professional values, key in each of the companies’ decisions. These also ensure that the interests of the administration are properly aligned with those of all our shareholders and employees.

VALUE CHAIN

At the end of 2018, Empresas Copec has market capitalization of US$ 15,560 million, accounting or about 9% of Chile’s main stock index (*). This figure is backed by a sustained trajectory of value creation, which has allowed the Company’s share to achieve an annual real average return close to 11% since 1987.

These numbers, in turn, are nothing more than ae reflection of a long-term vision and the work of Emoresas Copec team that have allowed leading markets, growing solidly and maintaining a firm commitment to the Company and the country.

(*) Number corresponds to Empresas Copec weighting in the SPCLX IPSA index, published by S&P in September 2018.