Corporate Presentation May 2018
Forward-looking Statements This presentation may contain forward-looking statements, that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of CMPC´s control that could cause the CMPC’s actual results to differ materially from those set forth in the forward-looking statements. These risks include in particular those described in CMPC’s Financial Statements, Note 3 (“ Gestión de Riesgos ”) . Forward-looking statements speak only as of the date they are delivered, CMPC undertake no obligation to publicly update or revise them considering developments which differ from those anticipated.
I. CMPC at a glance
A global leader in P&P CMPC is a P&P company, established in 1920, that produces solid wood products, pulp, paper and packaging products and tissue in Latin America Market capitalization of CMPC’s Figures US$9.5 billion +1 million as of March 31 st , 2018 Sales: $5,425 mm hectáreas of land EBITDA: $1,267 mm EBITDA Margin: 23% Shareholders’ Structure Net Debt: $3,143 mm Assets: $15,164 mm 45 mills Chilean Pension Funds Figures for the LTM as of March, 2018 (US$ million) 10% International corporate rating Chilean and BBB (stable) - Fitch Foreign Matte Group Investors BBB- (stable) - S&P 56% 35% Baa3 (stable) - Moodys Local rating AA- (Fitch) AA (ICR) +25 product lines As of March 31 st , 2018. Source: CMPC 4
Successful growth history over the past March three decades 2018 745 1,267 687 4,125 5,425 15,164 1990 237 43 308 228 628 1,312 Pulp Tissue 5 Plantations Revenues 1 EBITDA 1,2 Assets Capacity Capacity Th. hectares US$ million US$ million US$ million Th. tons Th. tons Source: CMPC (1) Figures fort the LTM as of March 2018. 8 (2) EBITDA (adjusted) is calculated by adding non- cash cost items to CMPC’s net profit. Non -cash items include depreciation, stumpage and changes in biological assets values.
II. CMPC’s Value Proposal 6 Source: CMPC, RISI 15-year Forecast (2016-2031) & PPPC- Dec 2016 I
CMPC’s Value Proposal 2. Low cost 4. Prudent producer with world- financial class assets management 1. Industry 5. leader and well 3. Investments Commitment diversified in high growth to sustainable P&P producer potential development businesses 7
Large-scale vertically-integrated producer of 1 multiple products % of consolidated Main Figures % of total sales Total capacity & Employees EBITDA Forests 687 Th. has. planted 49% 79% Pulp division 15.7 mm m3 harvested Sales: $2,928 mm Sales 3 rd parties: $2,648 mm Capacity EBITDA: $1,002 mm 1.6 million m3/y solid wood EBITDA margin: 34% 4.1 million tons/y pulp capacity Employees 5,081 employees Tissue division Capacity Sales:$1,949 747 Th. tons/y Sales 3 rd parties: $1,949 mm Employees EBITDA: $213 mm 8,262 employees EBITDA margin: 11% 16% 36% Capacity 430mm tons/y boxboard Paper division Sales: $855 mm 270mm tons/y containerboard Sales 3 rd parties: $827 mm 216mm tons/y corrugated boxes 15% EBITDA: $78 mm 688mm units/y multiwall bags EBITDA margin: 9% 370mm units/y molded fiber trays Employees 6% 3,410 employees Total: $5,425 $1,267 8 Source: CMPC. Figures in US$ million for the LTM as of March, 2018 / Figures do not include Holding and Intercompany Sales.
1 Geographic & product diversity provides flexibility & cash flow stability 9 Source: CMPC. Figures in US$ million for the LTM as of March, 2018 / Figures do not include Holding and Intercompany Sales.
Pulp production in low-cost, 2 high-yield geographies Radiata Pine Eucalyptus CMPC has a high quality Average softwood growth rate Average hardwood growth rate (m 3 ssc/ha/year) (m 3 ssc/ha/year) and sustainable forestry 43 43 43 43 base with fast growth cycles which optimizes capital 19 19 23 23 20 20 invested in land, reduces 11 11 11 11 5 4 average distance to mills 2 and increases gains due to Russia Scandinavia Canada USA Chile E. Globulus E. Globulus Mangium Eucalyptus E. Nitens Chile genetic and sylvicultural Acacia Iberian Brazil Chile practices Laja ja 93 Km. m. 80 Km. m. (by train) in) 93 Km. m. Pacíf ífico ico 163 Km. (by y train) Santa ta Fe 119 Km. m. 99 Km. m. (by y train) 208 Km. Guaíb íba 260 Km. (by y barge rges) s) 10 Source: CMPC
Pulp production in low-cost, 2 high-yield geographies BSKP CASH COST US$/ton cif China BHKP CASH COST US$/ton cif China 700 700 600 600 500 500 400 400 300 300 CMPC’s pulp facilities 200 200 CMPC’s pulp facilities 100 100 0 0 0 5,000 10,000 15,000 20,000 25,000 30,000 0 5,000 10,000 15,000 20,000 25,000 Th. metrics Tons Th. metrics Tons 11 Source: CMPC and Hawkins Wright as of December 2017
2 CMPC’s Tissue paper mar marke ket sh shar are 9% 4% Colombia CMPC’s baby diaper 11% 6% mar marke ket sh shar are Mexico Unique region-wide tissue operation 15% 22% Ecuador More than 40 years of expertise in the LatAm consumer 8% 3% business Brazil 54% 38% Top 5 tissue and sanitary products producer in every Peru major Latin American market Range of brands & products to take advantage of economic cycles Focused on growth in key markets and underpenetrated sanitary product markets 29% 67% Steady expanding capacity, combination of organic & 58% Chile 81% inorganic growth Uruguay 41% 15% Argentina 12 Source: CMPC
Operational productivity and efficiency 2 programs in all segments of CMPC Renegotiation Productivity Working optimization of electric capital program contracts reduction Renegotiation Improvement of logistic of our forestry contracts base 13
Global paper demand 3 evolution 450 412 412 409 409 411 411 406 406 395 395 402 402 392 392 400 400 395 395 400 384 384 371 371 369 369 363 363 92 94 91 88 87 343 343 85 82 81 84 350 333 333 79 329 329 322 322 77 76 75 72 300 32 33 34 35 36 27 30 70 28 29 69 26 68 25 28 24 23 23 250 21 22 Million tons 129 123 131 139 143 146 150 117 112 153 157 159 200 129 105 96 102 96 150 100 117 119 112 113 116 104 105 102 99 110 110 105 108 107 105 102 100 50 39 39 37 37 37 38 39 38 37 32 32 31 30 28 26 24 23 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Newsprint Printing & Writing Containerboard Tissue Other Paper and Board 14 Source: CMPC and RISI
Dynamics of the 3 pulp market VIRGIN FIBER MARKET PULP FIBER WORLD CONSUMPTION used to produce Paper&Board consumed to manufacture required to produce 411 million tons of (M tons) Paper&Board (M tons) Paper&Board UKP Mec Sulphite 2 5 Virgin Recover Paper Integrated Market 244 million tons Pulp 117 Pulp 181 million million tons (57%) 64 million BHKP BSKP tons (65%) 32 tons 25 (43%) (35%) 425 million tons 64 million tons 32 million tons of total fibers of market pulp of BHKP 15 Source: CMPC, Hawkins Wright and RISI
Tissue Paper Demand Dynamics 3 Per capita annual consumption of tissue paper (in kilograms) DEMAND DRIVERS (Countries in green are CMPC operation countries) USA Population Growth 25 & Urbanization Hong Kong Economic Growth Canada 20 Increase in AfH and Sweden Austria Tissue Paper App. Consumption (k/hab) non-higienic paper Germany Denmark Finland UK categories Israel Netherlands 15 Spain New Zealand Product Quality Portugal Croatia Australia Italy France Costa Rica Chile Increase in Market Hungary Share & Product 10 Consumption Mexico Argentina China Peru Brazil 5 Colombia Ecuador Russia Thailand Vietnam IndiaPhilippines 0 0 10 20 30 40 50 60 GDP per capita in US$'000 16 Source: CMPC as of 2016
Packaging Paper 3 Demand Dynamics Macroeconomics & Demographic - Population growth - Urbanization - Rising disposable income E-commerce Sustainability - Circular economy - New packaging materials - Packaging redesign Digitalization - Intelligent packaging - Technology integration 17
Strong balance sheet & conservative debt profile 4 Debt breakdown Debt by currency Debt by interest rate Debt by type Other Variable ECA Banks BRL CLP 4% Rate 7% Total debt: $3,986mm 6% 3% 3% BNDES 7% 11% Net debt: $3,143mm Bonds Fixed USD 76% Rate 90% 93% Amortization schedule 1,365 1,179 82 186 702 1.283 203 993 231 206 146 145 499 9 231 197 146 145 - - - 2018 2019 2020 2021 2022/2023 2024/2030 2031/2040 Bonds Banks 18 Note: Figures in US$ million as of March 2018
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