Jaime Charles Jaime Charles CoddouCoddouChiefChief ExecutiveExecutive OfficerOfficer

Santander Global Banking & MarketsSantander Global Banking & MarketsSeptember 22, September 22, 20082008

1

Mining Steel production Steel processing

• Exporting iron ore products mainly to Asia

• Produces steel for the domestic market

• Processes steel products, creating high value-added solutions in Chile,

Peru and Argentina

Vertically integrated ferrous metals company

2

Steel ProcessingSteel ProductionIron Ore Mining

Corporate structure

3

Chile76%

Argentina16%

Perú8%

Flat products51%

Long products

49%

Source: CAP

Fines3.5%

Lumps8.2%

Self-Fluxing Pellets15.6%

Pellets Feed35,6%

Pellets Chips2,2%

Basic Pellets34.9%

Iron Ore Sales 20078.37 million tons

Steel Sales 20071.21 million tons

Steel ProcessingSales 2007

402 thousand tons

1.75 million MT of iron ore 172 ThMT of CSH steel

80% exported, mainly toAsia

Market share above 53% of its total market and 66% of its target market

Market leader in themanufacture of tubes, profiles and steel solutionsin Chile

Product value-added chainTotal Consolidated Sales 2007: US$ 1.583 million

4

Iron ore mining

5

Punta Totoralillo Port

Cerro Negro Norte

Copiapó

Magnetite Plant

Los ColoradosGuacolda II Port

Vallenar

El Algarrobo

Cristales

El Tofo

La SerenaGuayacán Port

El Romeral

Pellets Plant

Iron ore mining - Areas of operation

6

• Largest producer of iron ore and pellets on thePacific coast of South America

• Ample resources and known reserves, togetherwith the expansion of its exploration activities, guarantee continuity of operations for manydecades

• Increases in projected capacity from 11.4 to 17.5 million MT by 2012

• Strong long-term commercial relations withcustomers in Asia

Iron ore mining

7

Mine / Deposit Reserves (2) Recoverable Product (3) Mine Life (4)

MTM Grade (% Fe) MTM MTM YearsLos Colorados (5) 352,4 44,8% 283,0 125,8 15,0El Romeral 413,1 31,2% 117,0 56,8 18,0

Candelaria (6) 394,8 10,0% 394,8 44,5 16,0Cerro Negro Norte 456,7 34,6% 176,5 80,0 20,0

El Algarrobo 115,1 47,6% --- --- ---Pleito - Cristales District 339,1 34,3% --- --- ---

Alcaparra D 230,0 31,5% --- --- ---Domeyko II 107,0 28,0% --- --- ---

Others - Algarrobo District 88,0 31,4% --- --- ---Los Colorados - District 25,6 44,9% --- --- ---El Laco 546,0 54,5% --- --- ---

Total Mineral Resources (1)

(1) Includes measured and indicated resources.(2) Includes proven and probable reserves.(3) Recoverable iron ore concentrate, taking into account mining and processing losses.(4) Estimates of mine life reflect currently contemplated mining and processing schedules and techniques and current reserves.(5) CMH owns Los Colorados. JV between CMP and Mitsubishi Corp

(6) CMP has a contractual right to process tailings at Candelaria.

Iron ore mining – Resources and reserves

Source: CAP

8

Indonesia12%

Malaysia7%

USA3%

China35%

Chile21%

Australia1%

Japan20%

Perú1%

7.612 7.437 7.312 7.579 7.6748.377

5001.5002.5003.5004.5005.5006.5007.5008.500

2002 2003 2004 2005 2006 2007

Th. MT ASIA : 74%CHILE : 21%OTHERS : 5%

Deliveries Markets

Iron ore mining - Stability of sales and markets

Source: CAP

9

Steel production

10

• Chile’s steel market leader

• 53% and 66% market share in total and target marketsrespectively

• 1.45 million tons of annual liquid steel productioncapacity

• Strong long-term commercial relations with customersin Chile

• Vertical integration in iron and limestone providesadvantage in facing economic cycles

Steel production

11

Evolución Histórica y Proyección del Consumo Aparente del Mercado Objetivo de Acero en Chile

0

500

1.000

1.500

2.000

2.500

3.000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Año

Mile

s de

Ton

elad

as

M.Obj Despachos Reales Proyección Despachos con Proyecto

Source: CAP

Steel production – Evolution of CSH´s target market

Deliveries - Target Market Deliveries - CSH Projected Deliveries - CSH

Forecast

12

Construction (32%)

Mining (19%)

Industry,mainlyconstruction (45%)Packaging (4%)

Steel production - Share of CSH in its target market

Sales of CSH in its Target Market (2007)

(thousands tons sold – market share)

Total Steel Market(2.27 million tons in 2007)

Thou

s and

s

CSH Sales (1.21 million tons in 2007)

0

500

1.000

1.500

2.000

2.500

2002 2003 2004 2005 2006 20070%

10%

20%

30%

40%

50%

60%

70%

80%

CSH Target MarketCSH Market Share

CSH Sales (53%)

Other local producers(17%)

Imports (30%)

Source: CAP

13

Steel production - Quarterly deliveries and average prices

0

50

100

150

200

250

300

350

400

E-M '00

A-J J-S O-D E-M '01 A-J J-S O-D E-M '02

A-J J-S O-D E-M '03

A-J J-S O-D E-M '04

A-J J-S O-D E-M '05

A-J J-S O-D E-M '06

A-J J-S O-D E-M '07

A-J J-S O-D E-M '08

A-J

Th. MT

0

200

400

600

800

1000

1200

US$/MT

Quarterly Deliveries Quarterly Average Price

Source: CAP

14

Steel processing

15

• Creates value-added solutions for construction, industry and infrastructuresectors in Chile, Peru and Argentina

• Its addition to the CAP group seeks to promote steel consumption

• Should result in improvements in consolidated returns

Steel processing

16

Deliveries Deliveries by company

Instapanel9%

Varco Pruden2%

Tasa16%

Centroacero 19%

Tupemesa8%

Cintac46%

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007

Thou

sand

s of

MT

Purchase to CSH

Steel processing - Deliveries

Source: CAP

17

Financial highlights48

1

530 72

5 880 99

7

1.58

3

741 1.

016

0200400600800

1.0001.2001.4001.6001.800

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Jun-07 Jun-08

72

114

208 25

6

247

336

305

416

050

100150200250300350400450

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Jun-07 Jun-08

420

384

270

257

394 43

9

346

509

0

100

200

300

400

500

600

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Jun-07 Jun-08

5,83

3,37

1,231,131,311,601,001,30

0,00

1,00

2,00

3,00

4,00

5,00

6,00

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Jun-07 Jun-08

Sales EBITDA (1)

Net Financial Debt Net Financial Debt / EBITDA

(1) EBITDA = Operating Income + Depreciation + Dividends received in cash, over the last twelve months

18

Financial evolution

(million of US$) 2002 2003 2004 2005 2006 2007 1H07 1H08

Sales 481 530 725 880 997 1.583 741 1.016

Operational Margin 42 84 180 185 170 301 146 234

EBITDA (1) 72 114 208 256 247 336 305 416

(million of US$) 2002 2003 2004 2005 2006 2007 1H07 1H08

Cash 4 15 62 154 242 184 264 375

Short Term Debt (2) 184 106 109 136 97 81 75 92

Long Term Debt 240 293 223 275 539 543 535 792

Financial Debt 424 399 331 411 636 623 610 884

Net Financial Debt 420 384 269 257 394 439 346 509

Equity 453 473 562 646 732 884 835 966

Investment (additions of fixed assets) 19 16 29 55 119 309 101 136

Net Financial Debt / EBITDA 5,83x 3,37x 1,30x 1,00x 1,60x 1,31x 1,13x 1,23x

(1) EBITDA = Operating Income + Depreciation + Dividends received in cash, over the last twelve months

(2) Include portion of long term debt

19

EBITDA by Business Unit

Financial highlights

47%

61%54% 52% 51%

54%

34%36%36%38%

24%

40%

12%13%12%13%8%

16%

0%

10%

20%

30%

40%

50%

60%

70%

Dec-04 Dec-05 Dec-06 Dec-07 Jun-07 Jun-08

CMP CSH SPG

20

Net Financial Debt / EBITDA

• Maximum committed level of 3.0x. To operate preferably at levels substantialy lowerthat the agreed limit

• Internal target < 2.0x

Dividend policy

• 50% of net income• CAP has suspended payment of dividends in difficult economic cycles

Financing policy (1)

• Financing with debt at the group level• Long-term debt with the guarantees of CMP and CSH

(1) Only for traditional businesses (iron ore and steel production)

Financial policy

21

33%

56%

77%81%

Steel Cement Aluminium Automobile

Market Share — Largest 10 companies

• The steel industry currently shows low levels of consolidation compared toother sectors

• With rising risks and costs, the number of mergers and acquisitions isincreasing at an accelerating rate. This demotivates the creation of newcapacity through greenfield projects, thus increasing the supply problem

Source: JPMorgan and Metal Strategies, October 2007

Consolidation

22

Consolidation is not the only emerging trend in the steel industry

TREND Logic

Steel producers’ downstream integration To add value to steel for manufacturingproducts with more technology & margins forniche markets

Steel producers’ upstream integration To assure access to raw materials & reduce the selling power of suppliers

Separation between steel producers & rollers of finished products

Integrated plants with high costs located far from coasts (e.g. Europe) could close thesteel-making process and be replaced withthe purchase of sheets &/or slabs for theirlater terrmination.

Other trends

Source: CRU

23

Steel Production 2008E Largest Steel Producers

Principal Steel users

CIS9%

UE15%

Asia58%

Others3%

Other Europa

2%Latin

America4%

North America

9%

UE18%

CIS5%

North America

10%

Latin America4%

Other Europa2%

Others5%

Asia56%

Steel Consumption 2008E

Fuente: UB Junio 2008Source: UB, June 2008

Current steel market position

24

US$ 2.25 trillion annually in infraestructure during the next three years. China, Middle East and Russia account for more than 70% of this amount

38%

11%3%

12%

16% 20%

China Middle East RussiaIndia Turkey Brazil

41%

16%

6%

37%

Energy Transportation Construction Water

Source: Merryl Lynch

Infraestructure investments

Investment by country Investment by sector

25

Every year between 2000 and 2020, around 25 to 30 million people willmigrate from the countryside to the cities in India and China. This is a decisive factor in the acceleration in demand for steel

Source: United Nations, McKinsey, Macquarie (June-2008)

Millions

ofpe

ople

Projection of annual urbanization in China and India

Urban areas development

26

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

2007 2008 2009 2010 2011 2012 2013 2014 2015

(Th.

MT)

CMP HA I HA II CMH

Projected mining production capacity

27

0

500

1.000

1.500

2.000

2.500

3.000

2007 2008 2009 2010 2011 2012 2013 2014 2015

(Th.

MT)

CSH 1,450 MT Project 3,000 MT Project

Projected liquid steel production capacity

28

P. C.

BOF y CCAH 3

Raw Materials

L.P.C.MP

Prod. Recubiert.

Blast Furnace N°3

Coke Plant

Port

Upgrade Hot Rolling Mill

Galvanized PlantConox Steel Milland ContinuousCaster

RawMaterials

Development program - Steel production

29

Capex

Total

Hierro Atacama Phase II 633 Upgrade Hot Rolling Mill 280 Equipments 64

Pellets Plant N°1 247 Galvanized Plant 272

Pellets Plant N°2 247 Expansion to 3,000 MT of liquid steel 1.872

El Romeral Mine 132 Environmental investment 70

Maintenance and others 54 Maintenance and others 90

CMH (1)

Total 1.313 2.584 64

(1) Considers 50% of the total investments in CMH, US$ 265 million

(2) Growth strategy considers investments on the Pacific coast of South America

CMP CSH GPA (2)

3.961

30

CMP expansion projects

CSH capacity expansion

Other CAP projects

Portion of existing cash

Internally generated cash

Additional debt

Sources of cash Uses of cash

Other

Sources and uses of cash

Capital increase in CAP

31

CAP and global trends

• Vocation of autonomous business development and complementation withcustomers and related producers

• Especially favorable upstream integration to the production of steel rawmaterials

• Important downstream integration to the processing of value-added steelproduction, promoting steel consumption and reducing operational risks

WWW.CAP.CLWWW.CAP.CL