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EMPRESAS
COPEC S.A.April 2016
www.empresascopec.cl
FISHING /
MINING
LIQUID FUELS GAS
NATURAL RESOURCES ENERGY
EMPRESAS
COPEC
Empresas Copec
participates in natural
resources and energy.
FORESTRY
2
81 YEARS OF
HISTORY
1934INCORPORATION
1950-1960EXPANSION IN
FUELS • Abastible
• Sonacol
1986ENTRY OF ANGELINI
GROUP• Financial restructuring
• Strategic development
plan
1970-1980DIVERSIFICATION
1986-2000 INVESTMENTS AND
GROWTH• Alto Paraná
• Arauco II
• Licancel
• Metrogas
2000-2005CONSOLIDATION AND
STRATEGIC FOCUS• Angelini assumes control
of the Company
• Divestiture of shares in
non-core businesses
• Focus in fuels, forestry
and fishing.
2003CORPORATE
RESTRUCTURING • Creation of Empresas
Copec
2005-2012EC, A WORLD SCALE
PLAYER • Arauco becomes the
second main producer of
market pulp in the world
and 3rd main Panel
producer
• Empresas Copec expands
to Colombia in liquid fuels
and LPG
2013-2014 NEW BUSINESSES• Montes del Plata pulp
mill in Uruguay started
operations
• Consolidation of the
panel business
• Terpel completes its
restructiring process
• EC sold its stake in
Guacolda
3
99,05%
40,80% 12,00%
39,83%99,99%
ANGELINI
GROUP
OTHERS
ANTARCHILE S.A.
PENSION
FUNDS
OTHERS
FORESTRY FUELS FISHING OTHER INVESTMENTS
74,36% 25,64%
60,82%
5,50% 33,68%
99,98%
58,51%
51,00%
81,93%
66,80% 30,64%
99,87% 50,00%
Fuente: Empresas Copec
Inversiones
del Nordeste
OWNERSHIP
STRUCTURE
4
SIZE
Empresas Copec is among
Chile’s largest publicly traded
companies.
It represents around 8,0% of
total market capitalization and
of the IPSA Index.
8,0%
MARKET CAPITALIZATION OF CHILEAN COMPANIES
[US$ million]
As of April 01th, 2016
5
16.812
13.651
12.409
11.355
10.274
9.229
7.186
6.092 5.798
67,3%
71,8%
-39,0%
CONSOLIDATED NET INCOME
58,6%
39,7%
1,6%
CONSOLIDATED INVESTMENTS
70,8%
28,3%
0,8%
CONSOLIDATED SALES
69,3%
22,3%
2,7%
5,8%
CONSOLIDATED ASSETS
66,7%
32,3%
1,8%-0,8%
CONSOLIDATED EBITDA*
BUSINESS
SECTORS
FUELS
FORESTRY
FISHING
OTHERS
INVESTMENTS
* EBITDA: Operating income + Depreciation + Fair Value Cost of Timber Harvested
Figures as of December 2015
Total:
MMUS$ 18,160
Total:
MMUS$ 539
Total:
MMUS$ 1,989
Total:
MUS$ 800
Total:
MMUS$ 19,937
6
8.726
Kronospan
Arauco
Nordbord+Ainsworth
Egger
Georgia Pacific
Louisiana Pacific
Swiss Krono
Pfeiderer
Kastamonu
Duratex
largest panel
producer in
the world2nd
Th. m3 Th. m3
largest
market pulp
producer in
the world3rd producer of
sawn timber in
Latin America1st
Th. tons
Source: Hawkins Wright, Risi, Arauco, Empresas Copec
Installed capacity includes 50% of Montes del Plata
LEADERSHIP IN ALL BUSINESSES
IN WHICH IT PARTICIPATES
2.770
West Fraser
Weyerhaeuser
Canfor
Stora Enso Timber
Tolko
Arauco
Sierra Pacific Ind.
AbitibiBowater
Hampton Affiliates
Interfor
Georgia Pacific
3.882
Fibria
CMPC
Arauco
APP
April
Suzano
UPM
Stora Enso
Georgia Pacific
Metsa
7Installed capacity includes 50% of Sonae-Arauco
Abastible37,0%
Otros63,0%
Grupo IN35%
Otros65%
Fuels distribution in Chile* Lubricants distribution in Chile* Fuels distribution in Colombia*
LPG distribution in Chile* LPG distribution in Colombia*
(*) Market share as of 2015 Source: Empresas Copec
LEADERSHIP IN ALL BUSINESSES
IN WHICH IT PARTICIPATES
Copec60,6%
Petrobras12,6%
Shell19,4%
Terpel0,0%
Otros7,5%
Mobil53,3%
Shell25,1%
Total5,1%
TexacoLubrax
5,4%
Castrol1,6%
Otros13,0%
Terpel44%
Otros56%
8
64%
32%
2%2%
US$11,2 billion
EMPRESAS COPEC
CAPEX
US$11,2 billion investment over the last 10 years
CAPEX
(US$ million)
2016 CAPEX DISTRIBUTION
Total estimated: 1,192 million
FUELS
FORESTRY
FISHING
OTHERS
1.192
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
9
2,0 1,9
1,6 1,7 1,6
1,91,8
2,0
2,5
3,2
3,5
3,9
3,4
3,0
2,72,8
2,72,6 2,62,4
2,4 2,42,2 2,2
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
1.760
231
844
544
1.181
433
524
650
187
1.059
386
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
Cash 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance
FINANCIAL
STRENGTH
Empresas Copec generates
healthy cash flows which allow
it to finance its investment
plan, distribute attractive
dividends and maintain low
levels of indebtedness.
NET DEBT / EBITDA
CONSOLIDATED DEBT SCHEDULE
As of December 2015
BBB
BBB
10
2008 2009 2010 2011 2012 2013 2014 2015
Profitability
Operating margin 6,9% 6,2% 9,4% 5,2% 2,9% 4,6% 4,7% 6,0%
EBITDA margin 10,9% 11,1% 15,3% 9,6% 6,8% 8,1% 8,6% 10,9%
ROCE 9,6% 6,1% 9,6% 9,3% 5,9% 8,6% 8,8% 8,6%
Leverage
EBITDA / net interest expense 7,8x 5,3x 7,6x 6,6x 4,7x 6,3x 7,0x 7,2x
Net debt / EBITDA 1,6x 2,3x 1,7x 2,0x 3,9x 2,8x 2,4x 2,2x
*Annualized
0
2.000
4.000
6.000
8.000
10.000
12.000
-100,00%
100,00%
300,00%
500,00%
700,00%
900,00%
COPEC CI Equity
IPSA Index
COPEC vs. IPSA Performance
Last 5 years
0
2000
4000
6000
8000
10000
12000
14000
STOCK
WATCH
Daily average liquidity
US$7 million(last 10-year average)
Historical performance
exceeds the index (IPSA)
Stock’s daily liquidity
(CLP million)Stock’s price
(CLP)
MM$ 3.865 million
(aprox. MMUS$ 7)
11
(*) Net Debt / Equity
US$68%
COP6%
Others1%
UF23%
CLP2%
FINANCIAL
INFORMATION
Consolidated debt as of 4Q15:
MMUS$6,156
Equity and Net Debt/Equity EvolutionEBITDA and EBITDA Margin Evolution
Covenant* 1,2x
Abastible1%
Arauco74%
Copec16%
Igemar1%
Sonacol2%
Empresas Copec
6%
Distribution by Company Distribution by Currency Distribution by Type
Bank Debt29%
Bonds65%
Others6%
(MU
S$
)
(MU
S$
)
12
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
0
500
1.000
1.500
2.000
08 09 10 11 12 13 14 15 4Q14 4Q15
EBITDA (US$) EBITDA Margin
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
08 09 10 11 12 13 14 15 4Q14 4Q15
Equity Net Debt/Equity
STRONG COMMITMENT
WITH SOCIETY AND THE
ENVIRONMENT
Important contribution to
Education, Culture, Sports and
the Community
• EDUCATION:
• Arauco Foundation (59 programs in 29
districts, benefitting 470 schools, 4,066
teachers and 71,268 students)
• Arauco, Constitución and Cholguán
schools
• Belén Educa and Enseña Chile initiatives
• SPORTS: Copec and Arauco soccer
cups, and Rally Mobil.
• APPLIED R&D: Copec – Catholic
University Foundation.
Conservation and protection of
biodiversity
• Certified chains of custody
• 390 th. hectares declared as Areas of
High Environmental Value in danger of
extinction or vulnerable
• Marine ecosystem environmental
surveillance Program
Improvements in management
systems and industrial &
logistic processes
• CERTFOR, ISO 9001, ISO 14001 and
OHSAS 18001 certifications in Arauco.
• Protocols for handling of industrial
residuals
Reduction and management
of environmental impact
• Efficient use of non dangerous
residuals: Biomass for the production of
energy in Arauco
• Treatment and permanent monitoring of
effluents
• Reduction of greenhouse gas
emissions (Kyoto Protocol)
• Vía Limpia project
• System of collection of unloadings in
Coronel
• Monitoring of carbon footprint
Community Environmental Biodiversity
Certifications
(1) License code: FSC – C108276 – Forestal Arauco 13
FORESTRY
SECTOR
Source: Empresas Copec
Forestry
99.98%
14
* Corresponds to the 50% of Montes del Plata
** Capacity as of December 2015
FORESTRY PULP SAWNTIMBER PANELS ENERGY
719,347
hectares
5 mills
2.88 million tons.
8 sawmills
2.6 million m3
5 facilities
Plywood: 710 Th m3
MDF: 515 Th m3
Hardboard: 60 Thm3
MDP: 300 Thm3
10 plants
606 MW
Surplus:
209 MW
Chile
132,289
hectares
1 mill
350 Th. tons
1 sawmill
318,000 m3
2 facilities
MDF: 300 Th m3
PB : 260 Th m3
2 plants
78 MW
Surplus: 8 MW
Argentina
72,172
hectares
Uruguay
100,296
hectares
2 facilities
MDF: 1,255 Th. m3
PB: 310 Th. m3
Brasil
8 facilities
MDF: 1.5 mill. m3
PB: 1.42 mill . m3
U.S.A
Canada
7 mills
3.88 million tons
9 sawmills
2.95 million m3
17 facilities
6.60 millon m3
13 plants
766 MW
Surplus:
253 MW
1,024,104
hectares
(69% pine
29% eucalyptus)
1 mill
*650 Th. tons
1 plant
82 MW
Surplus: 36 MW
15
5655
0
10
20
30
40
50
60
70
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Hectares planted
Hectares harvested
Annual Plantations
(in ‘000 hectares)
FORESTRY
FORESTRY
MANAGEMENT
Source: Arauco
1.002
-
200
400
600
800
1.000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Arauco’s Plantations
(in ‘000 hectares)
• Forestry – the base for growth
• Strategically located plantations
• deal conditions for forests growth – fast growth rate and
short harvest cycle
• Efficient forest management, guaranteeing the sustainability
of the operations
• Low forest operating costs
• Strategically acquiring attractive forestry assets and
continue developing new plantations
• Adoption of strict environmental policies toward holdings of
native forests
16
0
100
200
300
400
500
600
700
- 5.000 10.000 15.000 20.000 25.000 30.000
Ca
sh C
ost
(U
S$/t
on
ne)
(000't)BHKP BSKP
Chile
East Europe
Brazil
Chile / UruguayRussia
SwedenU.S.A.
East Canada
FinlandWest Canada
Others
Indonesia
Finland
U.S.A.
Canada
China
Others Europe
56%
17%
28%
Arauco’s position in the supply
curve assures a superior
operating performance.
ARAUCO’S CASH COST
Total Cash Cost: US$ 368/ ton
WORLD PULP SUPPLY CURVE
Source: Arauco 20-F 2014* Includes: energy, materials and other production costs
FORESTRY
COMPETITIVE
ADVANTAGES
Labor and Others*
Wood
Chemichals
17
The integral and efficient use
of resources allows Arauco to
maximize the value of the
forest.
FORESTRY
COMPETITIVE
ADVANTAGES
Energy to theGrid (239 MW)
606 MW
18
Asia61%
Chile5%
Europe8%
Rest of America
24%
Others2%
Rest of Latin America
30%
Chile8%
North America59%
Europe2%
Others1%
Rest of America
10%
North America38%
Asia30%
Europe12%
Others10%
SAWN TIMBER SALES
(US$ 962 million)
PANELS SALES
(US$ 1,851 million)
CONSOLIDATED SALES BY REGION
Total: US$ 5,329 million
FORESTRY
GEOGRAPHIC AND PRODUCT
DIVERSIFICATION
PULP SALES
(US$ 2,334 million)
19 Figures as of 2015
Asia32%
Europe4%
North America28%
Rest of America
23%
Chile8%
Others5%
FORESTRY
PULP
EXPANSIONS
3,2
0,65
1,0
Capacidad celulosadiciembre 2013
Montes del Plata(Uruguay, junio 2014)
Proyecto MAPAChile
Potentially
4,9 million tons
Capacity as of September 2014:
3,9 million tons
Expansions in Pulp
(million tons)
+26%
+20%
Source: Empresas Copec
(1) 50% of total Capacity, Montes del Plata is a joint venture between Stora Enso and Arauco (50% each)
(2) Final decision pending
Montes del Plata
• In June 2014, Montes del Plata, the new pulp mill in Uruguay started
operations (joint venture between Arauco and Stora Enso)
• Total installed capacity of 1.3 million tons of hardwood pulp
• Total investment of around US$2,300 million plus a port facility of
around US$200 million.(1)
(2)
In operation
MAPA project
• Net addition of approx. 1 million tons of pulp
• Subject to the decision of the board of Directors
Valdivia project
• Transformation of the Valdivia mill into a textile pulp mill. Dissolving
pulp is mainly used in the manufacture of viscose, which is known for
its softness, shine, purity and high water absorption.
• This project will increase the mill’s energy production in 15 MW.
• Investment of around US$185 million
Potential
20
Pulp capacity as of
December 2013Montes del Plata,
Uruguay (June 2014)
MAPA Project(2)
Chile
2,50,6
0,3
2,3 0,40,5 0,1
2,1
0,8
Capacidadpaneles enero
2012
Moncure(USA, MDF,PB, febrero
2012)
Teno (Chile,MDP, Julio
2012)
Flakeboard(USA, MDF/PB,Octubre 2012)
Nueva Aldea(Chile,
PlywoodDecember
2013)
Jaguariaiva(Brasil, MDF,
2013)
*ExpansiónSouth Carolina
(2016)
**Tafisa(Europa ySudáfrica,
2016)
**Michigan(USA, 2018)
Moncure
• Moncure panel mill, USA acquired in 2012
• Investment of US$ 62 million
Teno
• Started operations in July 2012
• Investment of US$ 165 million
Flakeboard
• Seven panel mills in the US and Canada, acquired in 2012
• Investment of US$ 242 million
Nueva Aldea
• In 2013 Arauco completed the reconstruction of the Nueva Aldea’s mill, which had been destroyed
after a wildfire in 2012.
• Investment of US$165 million
Jaguariaíva
• Jaguariaíva mill in Brasil, started operations in 2013
• Investment of US$165 million
South Carolina
• Expansion of an existing mill in South Carolina USA
• Investment of US$30 million
Sonae-Arauco
• JV with Sonae to acquire 50% of Tafisa, final approvals expected for 1H16
• Investment of US$150 million
Michigan
• New mill in Michigan USA, final approvals expected for 1H16
• Investment of US$325 million
FORESTRY
PANELS
EXPANSION
Expansions in Panels
(million of m3) In Operation
+166%
21
Moncure
(USA,
MDF/PB
February
2012)
Teno
(Chile,
MDP July
2012)
Flakeboard
(USA,
MDF/PB
October
2012)
Nueva Aldea
(Chile,
Plywood
December
2013)
Panels
capacity as of
January 2012
Capacity as of
December 2015:
6,6 million m3
+45%
Source: Empresas Copec
* currently under construction
** pending
**Sonae-
Arauco
(Europe
and South
Africa,
2016)
*South
Carolina
Expansion
(USA,
2016)
New Developments
Short term
• World demand increased 3.4% during 2015
• As of January inventories were at 31 days for long fiber and 47 for short
fiber
• Price gap between fibers today at US$53/ton
• New hardwood capacity pressures the market
Long term
• No significant softwood capacity coming on stream
• Demand growing between 2-3% per year
• Strong potential for consumption growth in China and other
emerging economies
Market pulp prices Inventories
FORESTRY
MARKET OUTLOOK
10
20
30
40
50
60
Softwood Hardwood
47
31
Days of supplyUSD/ton
22
350
450
550
650
750
850
950
1050
1150
Softwood Hardwood
• World demand increased 3.4% in 2015
• In January 2016 Chinese demand increased 10.3%, North American demand rose 0,8%,
East Europe’s increased 16,7 and Western Europe’s demand rose 0.5% with respect to
January 2014
Aggregated Demand
Million tons
World Demand Changes
(2015 vs. 2014)
FORESTRY
WORLD DEMAND GROWTH
0
10
20
30
40
dic-05 dic-06 dic-07 dic-08 dic-09 dic-10 dic-11 dic-12 dic-13 dic-14 dic-15North America West Europe East EuropeLatin America Japan ChinaOthers in Asia/Africa Oceania
23
11,0%
3,9%3,3%
2,6%1,1%
0,3%
-0,4%-1,1%
4,3%C
hina
Oce
ania
Oth
ers
in A
sia/
Afr
ica
Lati
no
amér
ica
No
rth
Am
eric
a
We
st E
uro
pe
East
Eu
rop
e
Jap
an
Tota
l
USA
Great Bri tain
Germany
Japan
Korea
RussiaMexico
Chi le
Brazi l
China
India
Ita lia
FranceSpain
Canada
Sweden
0
50
100
150
200
250
300
0 10 20 30 40 50 60
Kg. per capita
GDP* per capita
FORESTRY
GROWTH
DRIVERS
With 36% of the world’s
population, China and India
still have a long path to
walk.
PAPER CONSUMPTION
The size of the circles represents the relative total volume of consumption
* GDP is measured in thousands of US dollars and adjusted by PPP
Source: Bloomberg, Arauco, Internal Estimates
36% Kg. Per capita
24
FUELS
SECTOR
Fuels
99.99% 99.05% 39.83%
40.80% 12.00%58.51% 51.00%
Inversiones del Nordeste
25
Copec48%
Abastible13%
Terpel27%
IN4%
Sonacol8%
EBITDA FuelsLast 12 months
Liquid Fuels
FUELS
SIGNIFICANT
PRESENCE IN LATIN AMERICA
CHILE
Liquid Fuels
LPG
Oil Pipelines
Natural Gas
Import facilities
ECUADOR
COLOMBIA
Liquid Fuels
NGV
PANAMA
Liquid FuelsTotal: MMUS$ 714
NGV
MÉXICO
REPÚBLICA DOMINICANA
Liquid Fuels
NGV
Liquid Fuels
PERU
26
SERVICE STATIONS
• 485 th. clients served on average per day
• 59.3% Chilean fuel sale market share
• 42.1% service stations market share
• High operational efficiency: 27% over the closest
competitor
CONVENIENCE STORES
• Largest convenience store network in Chile:
• 82 Pronto stores and 220 Punto stores
• Open 24/7 365 days of the year
FUELS
COPEC
LIQUID FUELS DIVISION
LUBRICANTS
• 108 million liters sold in 2013
• 52.2% market share
• More than 400 different products
INDUSTRIAL CHANNEL
• More than 3,500 industrial clients
• Contracts with 30 large mining companies
• More than 60% market share in large mining
• 56% of share in aeronautical market
27
Copec85%
Shell8%
Other/none1%
Petrobras6%
Terpel0%
4,0 3,8 3,84,0 4,1
4,44,8
5,05,3
5,86,2
6,56,8
7,0
7,6
2,9 3,1 3,1 3,1 3,2 3,33,7 3,8 3,8 4,0 4,2 4,2
4,44,1 4,3
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Copec Others
• Coverage:
• 621 service stations
• 14 storage plants
• COPEC consistently outperforms the rest of the market in terms of operating efficiency:
• Prime locations
• Brand recognition
Fuel sales per Service Station
(thousand tons)
Source: Internal Estimates
Preference of service stations in Chilean highways
2014 market poll
FUELS
COPEC
LIQUID FUELS DIVISION
28
45
50
55
60
65
70
• Copec has reached a stable market share of 58% - 60%.
• Copec’s market share has gradually stabilized within this range following a period of peak demand
related to shortages in gas imports from Argentina
• Consolidation of the new service stations network.
• Customer satisfaction has reached record levels.
• Improvements in logistics and service have allowed to increase market share in the industrial
channel.
Liquid Fuels Share
%
Liquid Fuels - Market Share
As of December 2015
FUELS
COPEC
HISTORICAL PERFORMANCE
IN FUELS BUSINESS
Copec60,6%
Petrobras12,6%
Shell19,4%
Others7,5%
29
FUELS
ACQUISITION OF
TERPEL COLOMBIA
• Through a series of acquisitions in the open
market between May 2010 and March 2012,
Copec reached 58.89% of Terpel
• Total investment reaches US$760 million
US$ 760million
Figures as of Dec-15
% MarketShare
Business Lines
30
417.707
516.763
2011 2015
40%
44%
2011 2015
4.937
6.627
2011 2015
FUELS
ACQUISITION OF
TERPEL COLOMBIA
+34,2%
Liquid fuels sales in Colombia
(th. m3)
EBITDA Terpel
(th. $COP)
+ 4,3%
Market share in Colombia
• High growth potential in the Colombian market:
• Colombia’s vehicular penetration is lower than in Chile
• Low highway vehicular flows
• Low market penetration of convenience stores business
• Areas in which both company’s expertise can generate mutual benefits:
• Copec’s efficiency in its gas stations operation
• Terpel’s experience in the natural gas for vehicles (NGV) market
High growth potential
+23,7%
31
1.817
1.992
2011 2012 2013 2014 2015
# of Service Stations
FUELS
ACQUISITION OF
TERPEL COLOMBIA
44%
Others56%
• 45% liquid fuels market share in Colombia
• 47% in Natural Gas for Vehicles (NGV)
• 2.115 gas stations, largest network in the country
• Presence in 5 other countries in the region
Liquid fuels distribution in
Colombia
NGV distribution in
Colombia
46%
Otros 54%
Colombia80,6%
Panamá9,2%
Ecuador6,0%
Perú1,3%
México0,6%
Rep. Dominicana
2,3%
Panamá7,0%
Ecuador1,6%
Perú0,9%
México2,0%
Colombia
81,2%
República
Dominicana
2,3%
Main player in the Colombian fuels market
Sales by country EBITDA by country
Total:
2,312 million
galons
Total:
$COP 517
million
32 Figures as of Dec-2015
Change in sales points in Colombia*
+ 9.6 %
8.0%
% of Company-owned gas stations
10.5%
*Excludes GNV only Gas-stations
10.1%9.2%
8.9%
FUELS
LPG: ABASTIBLE
Others 64,7%
35,3%
LPG market share in 2015
LPG sales in Chile
(th. tons)
• More than 1.5 million residential clients, 6 million gas cylindersand
1,500 distributors in Chile
• Physical sales over 434 th. Tons of LPG in 2015
• 2nd largest player in Chile
• Significant development potential:
• Substitution of firewood , currently 40% of residential needs
• Expansion of geographic coverage: Arica, Antofagasta, Calama and
Iquique
• New applications: Autogas and Nautigas
321 341 348409 398 392 387 395 404 418 427 434 427 434
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dec-14
Dec-15
Abastible: Important player in LPG distribution in Chile
Others 63,0%
37,0%
Inversiones del Nordeste: Main player in LPG distribution
in Colombia
• In 2011 Abastible acquired a 51% stake in Inversiones del Nordeste
with a total investment of US$ 77 million
• IN is the main player in the Colombian LPG market. During 2014 it
reached:
• 35% market share
• Sales over 197 th. Tons of LPG
• Regulatory framework with free prices and company-owned cylinders,
very similar to Chile
Inversiones del Nordeste
CAC: 2,8%
33
FUELS
NATURAL GAS: METROGAS
803698 664
397278
391
648 686 701
1.012
1.141
1.303
1.141
1.303
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dec-14
Dec-15
322 345373
406436 451 456 461 472 489
579614
503
603
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dec-14
Dec-15
Number of Clients
(th.)
Physical sales
(million of m3)
• Empresas Copec participates in distribution and commercialization of natural gas through its stake in Metrogas
• It owns 39,8% of the company
• Distributes natural gas to more than 500,000 customers in the Metropolitan Region and supplies 90% of industrial consumption.
• Network of over 5 th. kilometers of pipelines
• LNG terminal operating since September 09 provides stable supply and generates new business opportunities
• During 2013 the company started a project to increase in 50% the regasification capacity to 15 million cubic meters per day
CAC: 6,0%
34
MAIN RELATED
COMPANIES
Other InvestmentsFishing
81.93%
66.80% 30.64%
99.87% 50.00%
35
OTHER
INVESTMENTS
MINA INVIERNO
• Coal mine in the Magallanes Region
• Resources: 516 million tons
• Reserves: 250 million tons
• Started operations during 1Q13
• During 2014 production reached 3.9
million tons
GOLDEN OMEGA
• Production of fish oil – based Omega 3
concentrates
• Only vertically integrated producer in
the world
• Started opeations during 2012
• During 2013 capacity increased to 700
annual tons
CAN-CAN
• Diego de Almagro copper mine
under studies
36
November 2015
FORESTRY
LATEST
DEVELOPMENTS
37
ARAUCO PURCHASES 50% OF TAFISA AND ENTERS
EUROPEAN AND SOUTH AFRICAN MARKETS
• The US$150 million investment will allow Arauco to share control
of this company that will operate two panel mills and one saw mill
in Spain; two panel mills and one resin facility in Portugal; four
panel mills in Germany and two in South Africa.
• Once the transaction is complete, the new company will be called
Sonae-Arauco. with estimated annual sales of US$ 900 millions.
• Sonae-Arauco’s production capacity will be aprox. 460,000 m3 of
OSB, 1.45 million m3 of MDF, 2.27 million m3 of PB and 100,000
m3 of sawn timber.
• This operation will rank Arauco as the world’s second largest
producer in the panel industry, with an annual production of about
9 million m3.
February 2015
MINA INVIERNO S.A. RECORDS ASSET IMPAIRMENT
• During 2015 due to a worsening scenario of low international coal
prices, and in line with what companies in the mining industry
have been doing, Laguna Blanca S.A. and its subsidiaries
conducted and completed a new impairment test on the
accounting items included on its balance sheet.
• The results obtained, which were validated by an external firm of
auditors, entail a financial loss for Laguna Blanca S.A. of about
US$290 million, comprising impairment of the amounts of
property, plant and equipment, the realization value of inventories,
intangibles and deferred tax assets.
• The negative effect on the income of Empresas Copec S.A. as of
12/31/2015, amounted to approximately US$145 million,
proportional to its shareholding.
• Such extraordinary accounting effect does not mean a cash
outflow.
FORESTRY / FUELS
LATEST
DEVELOPMENTS
38
TERPEL PARTICIPATES IN BIDING PROCESS FOR
PETROBRAS’ ASSETS IN COLOMBIA
• Terpel’s Board approved presenting a binding bid for the
acquisition of Petrobras’ assets in Colombia.
• The bid considers the acquisition of the fuels distribution
business, a lubricant production plant and convenience
stores.
• The operation involves 113 gas stations and 16
convenience stores.
ARAUCO ANNOUNCES THE CONSTRUCTION OF A PANEL MILL
IN THE UNITED STATES
• Continuing with the internationalization of the company, Arauco
announced the construction of a 750,000 m³/yr Particleboard mill in
Grayling, Michigan.
• The construction is meant to begin late 2016 and is expected to
last two years.
• The addition of panel capacity to this geographical area will
improve customer access to a stable, cost-efficient supply of high
quality particleboard and decorative panel products.
• This $325 million investment (estimated) will be the single largest
continuous particleboard press in North America, and one of the
highest capacity presses in the world.
• Local authority’s permits and the approval of the board are still
pending.
September 2015 September 2015
FORESTRY / FUELS
LATEST
DEVELOPMENTS
39
TERPEL PARTICIPATES IN BIDING PROCESS FOR
PETROBRAS’ ASSETS IN COLOMBIA
• Terpel’s Board approved presenting a binding bid for the
acquisition of Petrobras’ assets in Colombia.
• The bid considers the acquisition of the fuels distribution
business, a lubricant production plant and convenience
stores.
• The operation involves 113 gas stations and 16
convenience stores.
ARAUCO ANNOUNCES THE CONSTRUCTION OF A PANEL MILL
IN THE UNITED STATES
• Continuing with the internationalization of the company, Arauco
announced the construction of a 750,000 m³/yr Particleboard mill in
Grayling, Michigan.
• The construction is meant to begin late 2016 and is expected to
last two years.
• The addition of panel capacity to this geographical area will
improve customer access to a stable, cost-efficient supply of high
quality particleboard and decorative panel products.
• This $325 million investment (estimated) will be the single largest
continuous particleboard press in North America, and one of the
highest capacity presses in the world.
• Local authority’s permits and the approval of the board are still
pending.
September 2015 September 2015
FORESTRY
LATEST
DEVELOPMENTS
40
ENVIRONMENTAL IMPACT STATEMENT (EIS) APPROVED
FOR THE VALDIVIA PROJECT
• In February the environmental assessment department (EAD)
approved the environmental impact statement (EIS) submitted
by Arauco to undertake a textile pulp project at the Valdivia
wood pulp mill.
• This project, entailing an investment of US$185 million, will
enable the company to innovate and be the first in Chile to
produce this kind of pulp, generating a value-added product and
diversifying its offering in the market.
• This project will also increase the electric power generation of
the mill by 15 MW.
ARAUCO WILL INVEST US$ 30 MILLION IN EXPANSION OF
PARTICLEBOARD MILL IN THE UNITED STATES
• The project was approved to expand particleboard and melamine
capacity in one of Flakeboard´s mill in South Carolina.
• The investment will be US$ 30 million and will increase
production by 100,000m3 annually through increased dryer
capacity. The estimated start-up of this expansion is during the
4Q of 2015.
March 2015March 2015
0
5.000
10.000
15.000
20.000
25.000
30.000
Sustainable Sustainable competitive advantages
in every sector in which it participates
Financial strength
ExpansionSignificant expansion plans
DiversificationBusiness, country and market
diversification
EVOLUTION OF MARKET CAPITALIZATION
(MMUS$)
41
Analysts coverage
Contact Information
42
Director of IR and Investments Cristián Palacios [email protected] (56 2) 2461 7042
Investor Relations Rodrigo Perera [email protected] (56 2) 2461 7065
Investor Relations Leopoldo Silva [email protected] (56 2) 2461 7015
Banchile Andrew McCarthy [email protected] (56 2) 2873 6126
Banco Penta Juan Pablo Moraga [email protected] (56 2) 2873 3298
Barclays Pedro Grimaldi [email protected] (55 11) 3757 7297
BBVA Research Hernán Guerrero [email protected] (56 2) 2679 1127
BCI Corredores Ana Carolina Santos [email protected] (56 2) 2692 7457
BICE Julián de la Maza [email protected] (56 2) 2692 2523
BTG Pactual Cesar Perez [email protected] (56 2) 2490 5012
Citigroup Juan Tavarez [email protected] (1 212) 816 5791
Compass Group Paulina Rojas [email protected] (56 2) 2364 4803
Corp Research Vicente Meschi [email protected] (56 2) 2660 3620
Credit Suisse Viccenzo Paternostro [email protected] (55 11) 3841 6043
Euroamerica Claudio Ormazábal [email protected] (56 2) 2581 7038
GBM Emilio Acevedo [email protected] (56 2) 2616 9843
Goldman Sachs Humberto Meireles [email protected] (55 11) 3371 0766
Credicorp Capital Arturo Prado [email protected] (56 2) 2450 1688
Itaú BBA Barbara Angerstein [email protected] (56 2) 2834 6297
JP Morgan Lucas Ferreira [email protected] (55 11) 4950 3629
Larrain Vial Vicente Rodriguez [email protected] (56 2) 2339 8616
MBI Lorena Pizarro [email protected] (56 2) 2655 3716
Merrill Lynch Thiago Lofiego [email protected] (55 11) 2188 4010
Morgan Stanley Carlos de Alba [email protected] (1 212) 761 4927
NAU Pedro Baptista [email protected] (44 20) 7947 5510
Santander GBM Yair Avayú [email protected] (56 2) 2336 3359
Scotiabank Benoit Laprade [email protected] (514) 287 3627
Security Felipe Galleguillos [email protected] (56 2) 2584 2391
Company Analyst Contact information
EMPRESAS
COPEC S.A.
www.empresascopec.cl