EMPRESAS CMPC · 2019. 5. 7. · Plywood Biomass 74% Electric Energy 7% Oil 6% Natural Gas 7% Coal 6% Others 1% CMPC IS FOCUSING ON ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES

SEPTEMBER 2015

EMPRESAS CMPC PRESENTATION PREPARED FOR THE CHILE DAY

AGENDA

I. Company description

II. Our value proposal

1. Leading diversified Latin

American P&P player

2. Low cost producer with world

class assets

3. Strong balance sheet and

financial track record

4. Committed to Sustainable

Development and Corporate

Governance

5. Investment portfolio in high

growth potential businesses

III. 2015 Challenges

IV. Appendix

3

Matte Group

56%

Chilean

Investors

23%

Foreign

Investors

10%

Chilean

Pension

Funds

11%

P&P main companies by market

capitalization

CMPC AT A GLANCE

CMPC is a P&P company, established in 1920, that produces solid wood

products, pulp, paper, packaging products and tissue in Latin

America

Shareholders’ Structure*

Market capitalization of US$6.8 billion as of August 31st, 2015

~16,800 Employees worldwide

CMPC’s Figures Sales: 4,787

EBITDA: 946

Net Income: (49)

Net Debt: 3,629

Assets: 14,839

Figures for the LTM as of June 2015 (US$ million)

Controlled by the Matte Family, one of Chile’s leading economic groups

Operations in 8

countries, selling to

more than 45 countries

*As of August 31st, 2015. Source: Bloomberg * As of Jun 30th, 2015. Source: CMPC

International rating BBB+ (Fitch)

BBB- (S&P)

Baa3 (Moodys)

Local rating

AA (Fitch)

AA (ICR) 20.1

18.0

7.8 7.0 6.9 6.85.4 5.0

SCA IP Fibria Stora

Enso

KCM CMPC Suzano Klabin

AGENDA




American P&P player


class assets





Governance




IV. Appendix

1. LEADING DIVERSIFIED LATIN AMERICAN

P&P PLAYER

6

A DIVERSIFIED BUSINESS PORTFOLIO PROVIDES CMPC A STABLE CASH FLOW

Source: CMPC. Figures in US$ million for the LTM as of June 2015 / Figures do not include sales between CMPC affiliates or subsidiaries

Main Figures % of third parties total

sales

% of consolidated

EBITDA

Total capacity &

Employees

Fo

restr

y

Pu

lp

Pa

pe

rs

Tis

su

e

Sales: 929

Sales 3rd parties: 584

EBITDA: 153

EBITDA margin: 16%

652 Th. has. planted

14.4 M m3/y harvested

1.7 M m3/y solid wood

2,606 employees

US$5.7 billion in assets

Sales: 1,744

Sales 3rd parties: 1,396

EBITDA: 448

EBITDA margin: 26%

4.1 M tons/y

2,201 employees


Sales: 1,015

Sales 3rd parties: 958

EBITDA: 143

EBITDA margin: 14%

1.3 M tons/y

3,574 employees


Sales: 1,852

Sales 3rd parties: 1,849

EBITDA: 217

EBITDA margin: 12%

617 Th. tons/y

8,346 employees


23%

12%

29%

20%

39%

16%

15%

47%

7

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000Sales Breakdown Evolution (Million US$)

Domestic Sales in Chile Export Sales Domestic Sales Foreign Subsidiaries

Forestry Operations

Pulp Operations

Paper and Packaging

Operations

Tissue Operations

CMPC HAS EVOLVED FROM A LOCAL COMPANY TO A GLOBAL PLAYER

CMPC has expanded significantly through

Latin America over the last two decades

Source: CMPC

11x asset growth since 1990 (before CMPC’s

international expansion process)

8

Plywood

CMPC HAS A PRODUCT AND GEOGRAPHIC DIVERSIFICATION OF SALES THAT

PROVIDES FLEXIBILITY

Source: CMPC. Figures in US$ million for the LTM as of June 2015 / Figures do not include Holding and Intercompany Sales.

Operations in 8

countries, selling in more

than 45 countries

10 largest customers

represent ~ 15% of

consolidated sales

Besides Chile, there is no

single country that

represents more than

15% of consolidated sales

2. LOW COST PRODUCER WITH WORLD

CLASS ASSETS

10

CMPC BENEFITS FROM ITS PRODUCTION COST EFFICIENCIES AND WORLD CLASS

ASSETS

Energy investments

based in biomass and

cogeneration

(energy self-sufficiency in

Chile by mid 2015)

Access to

low cost fiber

Research and

Development to enhance efficiency,

productivity and customer

satisfaction

State of art

facilities strategically

located

11

11

2023

43 43

E. G

lob

ulu

s

Ibe

ria

n

E. G

lob

ulu

s

Ch

ile

Aca

cia

Ma

ng

ium

Eu

ca

lyp

tus

Bra

zil

E. N

ite

ns C

hile

2 4 511

19

Ru

ssia

Sca

nd

ina

via

Ca

na

da

US

A

Ch

ile

Radiata Pine Average softwood growth rate

(m3ssc/ha/year)

Eucalyptus Average hardwood growth rate

(m3ssc/ha/year)

HIGH YIELD FORESTRY ASSETS THAT PROVIDE LOW COST FIBER RESOURCES

652,000 Planted hectares

477,000 Chile

119,000 Brazil *

56,000 Argentina

CMPC

Forest Base

is FSCTM

Certified

Improvement in Forestry Yields **

** Evolution of the weighted increase of volume per hectare

excepted for eucalyptus and pine plantations established in

Chile in the respective year

CMPC has a high quality and sustainable forestry base with fast growth cycles which optimizes capital invested

in land, reduces average distance to mills and increases gains due to genetic and sylvicultural practices

0%3%

9%

14%

23%

32%

1975 1980 1990 2000 2010 2020P

Source: CMPC.

*There is an agreement to acquire from Fibria aprox. 100 Th. hectares of which 39 Th. are planted. CMPC is waiting the approval of Brazilian authorities to consolidate this land

** m3ssc: solid m3 without bark

Over 1 million hectares of land

12

0

100

200

300

400

500

600

700

0 5,000 10,000 15,000 20,000 25,000 30,000

(US

$/To

n c

.i.f

. N

. E

uro

pe)

(Thousand metric tonnes)

0

100

200

300

400

500

600

700

0 5,000 10,000 15,000 20,000 25,000

(US

$/T

on

c.i.

f. N

. Eu

rop

e)

( Thousand metric tonnes)

BSKP1 Supply Curve (US$/ton)

CMPC’S CASH COSTS ARE AMONG THE LOWEST OF THE PULP INDUSTRY

GLOBALLY

Source: CMPC and Hawkins Wright as of April 2015

(1) BSKP: Bleached Softwood Kraft Pulp

(2) BHKP: Bleached Hardwood Kraft Pulp

CMPC’s pulp facilities

CMPC’s pulp facilities

BHKP2 Supply Curve (US$/ton)

CMPC’s average distance from… to…

Source: CMPC

163 Km.

93 Km.

119 Km.

208 Km.

80 Km.

93 Km.

99 Km.

260 Km.

(by train)

(by train)

(by train)

(by barges)

Laja

Guaíba

Pacífico

Santa Fe

Plantations Ports

Effective price range of CMPC’s BSKP, last 24 months

Effective price range of CMPC’s BHKP, last 24 months

BSKP – 340 th. tons

BEKP– 1.750 th. tons

BSKP– 500 th. tons

BEKP– 1.500 th. tons

13

Plywood

Biomass

74%

Electric

Energy

7%

Oil

6%

Natural

Gas

7%

Coal

6%

Others

1%

CMPC IS FOCUSING ON ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 R 2015 F 2016 F

Forestry Pulp Papers Tissue

2014 R 2015 F 2016 F

Generation Contracts

Source of Energy Consumption

in CMPC 2014 (91,327 Terajoules)

Energy Balance in Chile GWh

CMPC is constantly investing in energy generation based on biomass and cogeneration to further lower its cost

base and its dependency from the electric market

Current Cogeneration Projects

Puente Alto Mill (4Q15): 50MW + 80 tons steam/hour

Talagante Mill (4Q15): 21MW + 25 tons steam/hour

Altamira Mill (4Q15): 21MW + 30 tons steam/hour

Source: CMPC

Consumption Generation

3. STRONG BALANCE SHEET AND FINANCIAL

TRACK RECORD

15

Plywood

Interest Coverage Ratio (Covenant: >3.25x) Financial Debt / Equity (Covenant: <0.8x)

Sales Evolution (US$ million) EBITDA and EBITDA Margin Evolution (US$ million)

KEY FINANCIAL FIGURES AS OF JUNE 30TH 2015

Source: CMPC

Source: CMPC

Source: CMPC

Source: CMPC

4,786 4,759 4,974 4,900 4,787

2011 2012 2013 2014 U12M

1,066

914964 985 946

22%19% 19% 20% 20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

200

400

600

800

1,000

1,200

2011 2012 2013 2014 U12M

0.43x

0.48x 0.48x

0.56x0.53x

0.00

0.10

0.20

0.30

0.40

0.50

0.60

2011 2012 2013 2014 2T15

6.80x

5.45x 5.67x5.31x 5.08x

0.00x

1.00x

2.00x

3.00x

4.00x

5.00x

6.00x

7.00x

8.00x

2011 2012 2013 2014 2T15

16

DEMONSTRATED CAPACITY TO MANAGE LEVERAGE

Net Debt / EBITDA

Source: CMPC

4.5

1.5

2.3

0.9

2.8

1.5

3.3

1.8

3.43.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0 Acquisition of Pacífico and Santa

Fe I

Santa Fe II

Investment Period

Guaíba I

Acquisition

Guaíba II

Investment Period

17

CMPC’S DEBT PROFILE AS OF JUNE 30TH 2015

Last financial transactions:

Capital increases for US$500 million (June

2013) and US$250 million (July 2014)

US$340 million ECA financing

10 year (+2 year grace period) @ 3.5%

UF 5,000,000 Chilean bond (May 2014)

25 year bullet @ UF + 3.7%

UF 4,000,000 CMPC- B bond prepayment

(Sept. 2014)

US$500 million international bond (Sept.

2014):

10 year bullet @ UST10 + 225 bps

Amortization schedule (as of today)

Source: CMPC

Debt Profile

Average term: 6.8 years

Total Debt: US$4,246 million

Cash: US$617 million

Net Debt: US$3,629 million

498 497 494

989

491

98

212217

130 129

362

86

2015 2016 2017 2018 2019 2020/22 2023/30 2030/39

Bonds Banks

Banks

7%

Bonds

71%

BNDES

14%

ECA

8% CLP

6%

USD

84%

BRL

7%

Other

3%

Fixed

Rate

97%

Variable

Rate

3%

Inversi

ones CMPC

71%

Tissue

8%

Pulp

21%

4. COMMITTED TO SUSTAINABLE

DEVELOPMENT AND CORPORATE

GOVERNANCE

19

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

Our objectives for the 2013 – 2015 period:

Increase of our renewable energy generation, reducing the purchase of fossil fuels and electricity

Increase the energy efficiency of pulp mills by 20% by 2020

Complement the FSC™ Certification for the stewardship of renewable forest plantations in Chile and

Brazil with the respective FSC™ Chain-of-Custody for the products made by the Company

Reduce CMPC’s water consumption and effluent volume by upgrading the older industrial processes

*For further information please review our CSD Report which is available at www.cmpc.cl

Throughout its history, CMPC has maintained a way of doing business and engaging with employees,

customers and shareholders. With a 95-year tradition, the following five values summarize our vision of how

we should work.

Strict compliance

with the legal

regulation

Consideration for

neighbors' needs Respect for people

Fairness when

competing

Care of the

environment

20

CORPORATE GOVERNANCE IN CMPC

Board of Directors

Elected every three years by shareholders

Shareholders Meeting to account for the administration

Scheduled meetings held once a month to evaluate and decide

on the development of the Company

Name Years as Director

Eliodoro Matte (Chairman) 39

Martín Costabal 10

Erwin Hahn (Independent) 4

Jorge Gabriel Larraín 35

Arturo Mackenna 4

Jorge Marín (Independent) 19

Bernardo Matte 30

Directors Committee

Current members: Jorge Marín, Erwin Hahn and Arturo

Mackenna

Is responsible for

examining the background information concerning

related party transactions

examining the reports prepared by the external and

internal auditors

examining officers’ compensation systems and plans,

among others matters

Senior Management

Appointed by the Board of Directors

The controlling group members do not serve as CMPC’s

managers

Top managers with over 24 years experience in CMPC

Other Self Imposed Requirements

Controllership Department, Internal Control Department,

Corporate Governance structured downstream, Corporate

Ethic Code, Antitrust Guide, Global Demand Line, Investor

Relations Department, Auditing Committee, Risk

Committee, among others

5. INVESTMENT PORTFOLIO IN HIGH

GROWTH POTENTIAL BUSINESSES

22

CMPC HAS A DIVERSE PROJECT PORTFOLIO WITH MORE THAN US$2.6

BILLION IN INVESTMENT FOR THE PERIOD 2014-2015

TISSUE/ENERGY

Cogeneration plant –

Talagante Mill

21MW + 25 tons steam/hour

US$33 million

4Q15 (72% disbursed*)

PULP

Guaíba Expansion

1.3 million ton/year | US$ 2.1 billion | 2Q15

FORESTRY

Land purchases for forestry

uses and associations with

3rd parties.

TISSUE

Increase in conversion

capacity of tissue paper and

sanitary products

PAPERS/ENERGY

Cogeneration plant –

Puente Alto Mill


US$71 million


TISSUE

Tissue Machine + Cogeneration –

Altamira Mill (Mexico)

50 th. tons /year


US$ 130 million


RECURRENT

INVESTMENTS

*As of June 30th, 2015

23

22

51

84

98

May June July August

Guaíba 2 Production th. tons

GUAÍBA 2 PROJECT

May 2015 Startup

4Q15 Full ramp up

US$2.1 billion Total Investment

1.3 million tons Installed Capacity

Guaíba 2 Project executed on-time and on-budget thanks to CMPC’s expertise in large scale projects

and a good relations with its vendors, contractors, unions, workers and the local community.

24 months Construction Period

No strikes During construction

High Security Standards Low loss-time accidents metrics during

construction

MAIN HIGHLIGHTS

24

TISSUE DIVISION: CMPC IS FAVOURABLY POSITIONED TO CAPTURE THE

DEVELOPMENT AND GROWTH OF THESE MARKETS

Chile

Argentina

Uruguay

Peru

Mexico

Colombia

Brazil

75%

7%

43%

80%

11%

6%

56%

CMPC Tissue Paper Market Share.

Source: CMPC as of December 31st 2014

Ecuador

23%

CMPC Tissue Sales (US$ million)

CMPC successfully

evolved from a local

player into a leading

LatAm tissue player due

to its ability to enter new

markets with high

potential based on a

pioneering spirit

sustained by world-class innovations

CMPC has a strong

presence in all main

categories of tissue,

sanitary and away

from home products

CMPC: 84 th. tons*

CMPC: 71 th. tons

CMPC: 166 th. tons*

CMPC: 27 th. tons

CMPC: 135 th. tons

CMPC: 35 th. tons

CMPC: 99 th. tons 296

430

682

1,106

1,503

2,015

1,850

2001 2006 2007 2009 2012 2013 2014

Entry to Ecuador -Colombia

Entry to

Mexico

Entry to

Brazil

25

Per Capita Tissue Consumption

CMPC SEEKS TO TAP LATAM UNDERPENETRATED TISSUE MARKETS

High growth potential due to low per

capita consumption relative to developed

economies.

Latam average tissue consumption:

5.7 kg/person

Expected growth in LatAm markets: 64%

for Tissue Paper and 34% for Diapers for the period 2012-2022

Tissue Paper and Baby Diapers Annual Consumption

Growth

Source: CMPC as of December 2013 Source: RISI Tissue World Report (June 2013) and Price Hanna Report (February 2013)

* CAGR: Compound Annual Growth Rate

5.0%

6.3%

3.7%

4.2%

5.7%

4.2%

6.1%

5.6%

5.2%

4.9%

3.1%

2.7%

1.9%

(0.1%)

4.4%

1.7%

1.3%

1.9%

2.3%

9.3%

Latam

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Ecuador

Uruguay

Other

Latam

Tissue Paper (th. tons) Baby Diapers (th. units)

3,517 31,745

1,036 11,100

971 9,000

300 3,230

206 2,580

198 905

133 1,415

65 548

29 125

579 2,842

2012-2022 CAGR * Market Size (2012)

Honduras

India

GuatemalaEl Salvador

Indonesia

Ecuador, Peru,

China, Colombia, South Africa

Costa Rica

Brazil

Mexico

Venezuela

PanamaUruguay

Chile HungaryPoland

Greece

Portugal

Czech Republic

MaltaIsrael

SpainNew Zealand

Italy

JapanFrance

UKFinland

BelgiumIceland

Canada

Australia

Germany

Sweden

Austria

USA

0

5

10

15

20

25

0 10 20 30 40 50 60

Tís

su

e P

ap

er

Ap

p. C

on

su

mp

tio

n (

k/h

ab

.)

GNI p/c (thousand US$ at ppp)

AGENDA




American P&P player


class assets





Governance




IV. Appendix

27

CMPC WILL BASE ITS STRATEGY IN 4 PILLARS TO CONSOLIDATE ITS

LEADERSHIP IN THE P&P INDUSTRY

2. Focus on cost control and enhance efficiency

1. Successfully execute its investment program

3. Maintain a balanced capital structure

4. Consolidate CMPC’s culture among all business divisions and countries

AGENDA




American P&P player


class assets





Governance




IV. Appendix

29

APPENDIX I: ANNUAL CAPACITY BY PRODUCT/COUNTRY

Business Area Product / Country Capacity

Forestry

Sawn wood 1.0 M m3

Remanufactured wood 190 th. m3

Plywood 500 th. m3

Pulp

BSKP (Laja) 340 th. tons

BSKP (Pacífico) 500 th. tons

BEKP (Guaíba) 1.750 th. tons

BEKP (Santa Fe) 1.496 th. tons

Papers

Boxboard 431 th. tons

Paper Bags 93 th. tons

660 M bags

Corrugated Paper 330 th. tons

Corrugated boxes 285 th. tons

Molded Pulp trays 18 th. tons

296 M bags

Other Papers 140 th. tons

Tissue

Chile 166 th. tons

Brazil 135 th. tons

Argentina 99 th. tons

Mexico 84 th. tons

Peru 71 th. tons

Uruguay 35 th. tons

Colombia 27 th. tons

30

APPENDIX II: NEW BEKP CAPACITY IN THE 4OO+ MILLION TONNES FIBER

MARKET

Source: RISI 5-year Forecast (2013-2018) - December 2013

417 million tons of total fibers [Containerboard: 146 million tons]

[P&W: 109 million tons]

[Other P&B: 86 million tons]

[Tissue: 32 million tons] [Newsprint: 31 million tons]

59 million tons of

market pulp

28 million tons of

BHKP

Fiber World Consumption required to

produce 403 million tons of

Paper&Board Virgin fiber used to produce Paper&Board

(million tons) Market Pulp consumed to

manufacture Paper&Board - 2013

(million tons)

Virgin Pulp

183 million

tons

(44%)

Recovered

Paper

234 million

tons

(56%)

Market Pulp

59 million

tons

(32%)

Integrated

124

million tons

(68%)

BSKP

24 BHKP

28

Sulphite

UKP

2

Mec

5

[BEKP: 16.8 million tons] [Guaíba II: 1.3 million tons]

31

-

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Mil

lio

n T

on

s

BHKP Birch BEKP ABHKP NMHKP SMHKP

APPENDIX II: EUCALYPTUS PULP GROWTH HAS OUTPACED OTHER

HARDWOOD FIBERS BECAUSE OF ITS COST AND QUALITY ADVANTAGES

CAGR:

Source: HW Outlook for Market Pulp – April 2015

BHKP: +4.4%

BEKP: +7.7%

ABHKP: +9.5% NMHKP: -1.7% SMHKP: -5.5%

Birch: -3.4%

Higher pulp production yield than other species

Fast growing trees: shorter rotation, less land required and better performance

Superior structural properties for several paper & paperboard applications

Paper manufacturers looking for BEKP to premium tissue products

BEKP replacing other fibers

32

APPENDIX II: THE PAPER INDUSTRY HAS GROWN, SPECIALLY IN THE PACKAGING

SEGMENT

Since 1992 paper production has grown 61%, mainly explained by:

106 million additional tons of packaging paper

33 million additional tons of P&W papers

18 million additional tons of tissue papers

Since 2007, Packaging and Tissue have continued to grow, while P&W has declined

Source: RISI

Millio

n T

on

s

32 33 34 35 35 36 36 38 39 38 37 37 39 38 38 38 37 32 32 31 30 28

74 76 83 85 85 93 94 98 104 99 102 105 112 113 117 119 116 106 111 110 108 106

114 115 123 127 131

138 138 144 148 148 156 161 171 177 186 194 196

190 206 210 214 219

15 16 16 17 18

19 19 20

21 22 23 23

24 25 26

27 28 28

29 30 31 32

15 14 15 15 16

16 15 16

15 15 14 15

15 14 15

15 15 14

16 17 16 16

-

50

100

150

200

250

300

350

400

450

Newsprint P&W Packaging Tissue Other P&B

33

APPENDIX II: HARDWOOD PRICE EVOLUTION AND FORECAST TO 2019

5 months average price as of May 2015

Sources:

- Hawkings Wright: Outlook - April 2015

- RISI: World Pulp & Recovered Paper Forecast - 5-Year – May 2015

- Brian McClay: Brian McClay & Associates Inc. - May 2015

- History: FOEX prices

BEKP List Price (CIF) Northern Europe (US$/Ton)

500

550

600

650

700

750

800

850

900

History (FOEX) Hawkings Wright RISI Brian McClay

Forecast

805

736

715

CONTACT INVESTOR RELATIONS

Disclaimer:

This document provides information about Empresas CMPC SA. In any case this constitutes a comprehensive analysis of the financial, production and sales

situation of the company, so to evaluate whether to purchase or sell securities of the company, the investor must conduct its own independent analysis.

In compliance with the applicable rules, Empresas CMPC SA. publishes this document in its web site (www.cmpc.cl) 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.

Colomba Henríquez

[email protected]

+(562) 2 441 2791

Documents

EMPRESAS CMPC · 2019. 5. 7. · Plywood Biomass 74% Electric Energy 7% Oil 6% Natural Gas 7% Coal 6% Others 1% CMPC IS FOCUSING ON ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES