Corporate Presentation May 2019 Forward-Looking Statements This - PowerPoint PPT Presentation

Corporate Presentation May 2019

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 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 (“ Risk Management ”). Forward-looking statements speak only as of the date they are delivered. CMPC undertakes no obligation to publicly update or revise them based on developments which differ from those anticipated. Investor Relations Contacts Colomba Henríquez Petya Miteva colomba.henriquez@cmpc.cl petya.miteva@cmpc.cl +56 2 24412713 +56 2 2441 2791 Agustina Mussolini agustina.mussolini@cmpc.cl +56 2 2441 2616 2

Index I. CMPC at a Glance II. Competitive Advantages III. Industry Drivers IV. Strategy V. Appendix 3 3

4 CMPC at a Glance

A Global Leader in P&P 4 th CMPC is a P&P company, established in Global Market 1920, that produces solid wood products, Producer 2 pulp, paper and packaging products and Pulp tissue in Latin America. CMPC Figures 1 Competitive Packaging BEKP & BSKP Pulp Softys 10% 53% 32% Cash Cost Softys 14% Sales Assets $6,229 $15,196 2 nd Pulp Producer in LatAm 3 Packaging 73% Tissue Softys 5% 8% 15% Packaging Investment Grade EBITDA Company $1,752 Fitch: BBB (stable) Moody’s: Baa3 (stable) Pulp S&P: BBB- (stable) 89% 5 1 Source: CMPC. Figures for the LTM as of March 2019 (USD million) 2,3 Source: Hawkins Wright, RISI

Vertically integrated... 1.6 million m3 / year Corrugated boxes Containerboard Solid Wood 211,000 260,000 Products tons / year 688,000 Boxboard 520,000 Molded pulp trays Planted hectares 396 MM Sackraft HW 3,362,000 Pine 52% units / year 66,000 Eucalyptus 48% SW 798,000 Paper bags tons / year 732 MM Papers tons / year units / year Pulp Packaging Market Pulp 747,000 tons / year Tissue Paper Products 580,000 tons / year Recycled Paper Source: CMPC, as of December 2018 6

... and well-diversified player Pul ulp Tissue ue Papers Chile le 209 209 550 550 428 428 1,18 1, 187 19% 19% Argentina 8 300 300 15 15 324 324 5% 5% Domestic Sales Brazil 89 89 321 321 410 410 7% 7% 45% Peru 298 298 55 55 352 352 6% 6% Do Mexico 274 274 29 29 303 303 5% 5% Uruguay 81 81 81 81 1% 1% Colom lombia bia 71 71 71 71 1% 1% Ecuador dor 50 50 50 50 1% 1% 6,2 ,229 Latam La 97 97 43 43 208 208 348 348 6% 6% Europe pe 727 727 67 67 794 794 13% 13% China 878 878 878 878 14% 14% Exports 55% Ex Other Asia 787 787 21 21 808 808 13% 13% USA 317 317 3 52 52 371 371 6% 6% 46.501 Others 198 198 54 54 252 252 4% 4% 3,3 ,309 1,9 ,990 929 929 53% 32% 15% 6,2 ,229 Source: CMPC. Figures in USD million for the LTM as of March, 2019 / Figures do not include Holding and Intercompany Sales 7

CMPC’s Corporate Governance & Shareholders’ Structure High corporate governance standards, in line with international best practices to continue growing and generating value to all our stakeholders in a responsible and sustainable way. Share holder’s Structure 1 Corporate Governance Each Board of Directors Committee counts with a functioning protocol which Chilean defines its members, attributions and topics addressed. Chilean Pension Funds and Foreign 10% Investors 34% 56% Matte Group 1 Source: CMPC, as of March 31st, 2019 8

Committed to Sustainable Development First Chilean Company to issue a Green Bond Energy Efficiency Member of the Gold Seal FTSE4Good Index Member of the granted by the Energy (4 th consecutive year) DJSI Chile Index (4 th Ministry of Chile and consecutive year) and the Agency for Energy DJSI MILA Index (2 nd Efficiency consecutive year). 9

Competitive Advantages 10

Forestry assets in low-cost, high-yield geographies with continuous productivity growth Eucalyptus Eucalyptus Nitens Average hardwood growth rate (m3ssc/ha/year) Volume Gain (%) 1 27.2 43 43 19.0 23 20 8.2 11 1.4 E. Globulus E. Globulus Acacia Eucalypus E. Nitens 1994-1996 1997-1999 2000-2014 2015-2017 Iberian Chile Mangium Brazil Chile Radiata Pine Radiata Pine Average softwood growth rate (m 3 ssc/ha/year) Volume Gain (%) 1 35.7 20 25.8 11 15.1 5 4 6.0 2 0 Russia Scandinavia Canada USA Chile 1975 1976-1994 1995-2009 2010-2015 2016-2017 11 Source: CMPC 1 Achieved through continuous traditional genetic and silvicultural improvements.

Strategically located pulp facilities BSKP Cash Cost BHKP Cash Cost USD/ton cif China USD/ton cif China 700 700 600 600 Cash Cost Cash Cost 500 500 400 400 300 300 200 CMPC’s pulp facilities 200 CMPC’s pulp facilities 100 100 0 0 0 5.000 10.000 15.000 20.000 25.000 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 Th. Metric Tons Th. Metric Tons Source: CMPC, Hawkins Wright April 2019 12

9% 3% Colombia 12% 6% TM 1 : 221 Unique Region-Wide Tissue Market Presence G 2 : 4.3% More than 40 years of Top 5 tissue and sanitary México expertise in the LatAm products producer in every TM 1 : 1,113 22% consumer business. major Latin American market. G 2 : 2.3% Focused on growth in key 55% 8% . markets and underpenetrated sanitary product markets. Steady expanding capacity, Ecuador combination of organic & 24% TM 1 : 72 inorganic growth. G 2 : 4.8% 12% 3% Perú Brazil TM 1 : 171 80% TM 1 : 1,243 70% G 2 : 7.1% G 2 : 4.4% 57% 31% 41% CMPC’s Tissue paper market share 16% Chile CMPC’s baby diaper paper market share TM 1 : 233 Uruguay G 2 : 5.2% TM 1 : 38 Argentina G 2 : 8.4% Source: CMPC, RISI 1 TM: Total Tissue Market in th. Tons as of 2016 TM 1 : 327 13 2 G: CAGR 2006-2016 G 2 : 3.5%

Comprehensive Portfolio of Well-Known and Well-Regarded Brands Tissue Paper Away from Home Sanitary Products Source: CMPC 14

CMPC’s boxboard is a multilayer fiber- based product with multiple competitive advantages Multilayer Boxboard Low production cost Transporting efficiency Product consistency Ratio between weight and rigidity Conversion efficiency Health safety Printing quality Local US producers cash cost curve USD / Ton 1,000 800 Average CMPC boxboard cash cost at US port 600 400 200 0 CMPC Maule Mill 15 Source: CMPC 2018

IndustryDrivers

Global Paper Demand Evolution Population Growth Increase in Product Quality Urbanization E-Commerce Economic Growth Circular Economy Rising disposable income Intelligent Packaging 45 450 418 414 409 410 405 401 399 394 392 395 40 400 383 369 371 363 95 93 91 91 343 89 87 85 82 84 81 35 350 333 79 329 322 77 76 75 72 38 36 30 300 33 34 35 27 32 70 30 28 29 69 26 68 25 28 24 23 23 25 250 21 22 128 123 130 139 142 146 117 149 112 153 157 161 166 20 200 128 Other Paper and Board 105 96 102 96 15 150 Tissue 10 100 117 119 112 113 116 Containerboard 104 105 102 110 99 110 105 108 107 105 102 100 98 50 50 Printing and Writing 39 37 37 39 38 39 38 37 37 32 32 31 30 28 26 24 23 22 - - Newsprint 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 17 Source: RISI

Dynamics of the Pulp Market Source: Hawkins Wright 2017, CMPC 18

Tissue Paper Demand Dynamics Per capita annual consumption of tissue paper (in kilograms) (Countries in green are CMPC operation countries) 25 Tissue Paper App. Consumption (k/capita) 20 15 10 5 0 10 20 30 40 50 60 GDP per capita in USD'000 Source: RISI, World Bank and CMPC as of 2017 19

Strategy

CMPC’s Strategy Efficiency & Growth Profitability Productivity 21

Pulp Strategy: Improving margins through operational excellence Forest Base Expansion Operational Excellence Program Increase our forestry base in Brazil in order to prepare future growth in pulp +8% 1 +7% 1 Plywood Laja Mill Pacifico Mill 2 L1:+10% 1 Guaiba Mill 2 L2:+4% 1 Santa Fe Mill 1 Increase in production efficiency (%) between 2016 and 2018 22 2 Operational excellence programs are still underway and haven’t had one full cycle yet or will be launched beg. 2019

Softys Strategy: Leading Latin American Producer Profitability Strategy Softys Leading markets Revenue Management Route to Market Operational Excellence Program 70% 41% 55% 80% Procurement Cost Reduction Fiber Management 60 th USD 130 60 th USD 140 tons Million tons Million Zárate tissue machine Cañete tissue mill 4Q19 1Q17 Opportunity markets 12% 12% Source: CMPC 23