Corporate Presentation November 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 Blanca Lecaros blanca.lecaros@cmpc.cl +56 2 2441 2616 2
Index I. CMPC at a Glance II. Competitive Advantages III. Industry Drivers IV. Strategy V. Appendix 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. 2 nd CMPC Figures 1 Producer in LatAm 3 Biopackaging Tissue Pulp Softys 11% 50% 35% 1 st Softys 17% Largest LatAm Exporter Boxboard Sales Assets $5,837 $14,796 5 th Pulp Global Producer Biopackaging 73% Paper Sacks Softys 5% 12% 15% Biopackaging Investment Grade EBITDA Company $1,349 Fitch: BBB (stable) Moody’s: Baa3 (positive) Pulp S&P: BBB- (stable) 83% 5 1 Source: CMPC. Figures for the LTM as of September 2019 (USD million) 2,3 Source: Hawkins Wright, RISI
Market Pulp Vertically integrated... 747,000 tons / year Tissue Paper 1.6 million Products m 3 / year Solid Wood Products 688,000 520,000 Planted hectares tons / year Boxboard HW 3,362,000 16.6 million m 3 harvested SW 798,000 66,000 732 MM tons / year units / year tons / year Sackraft Paper Sacks Pulp ~90% Market Pulp 260,000 211,000 tons / year tons / year Corrugated boxes Containerboard 580,000 tons / year 396 MM Recycled Paper units / year Molded pulp trays 6 Source: CMPC, as of December 2018
... and well-diversified player Source: CMPC. Figures in USD million for the LTM as of June, 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 35% 55% Matte Group 1 Source: CMPC, as of September 30th, 2019 8
Committed to Sustainable Development CMPC owes its existence to the natural environment, which is the source of its business and whose fruits enable the Company to contribute to the future wellbeing of society. Environmental Targets Commitment to Sustainable Development Goals CMPC subscribes to the UN Global Compact Sustainable Development Goals and develops and actively participates in Climate Change Water projects and initiatives to contribute towards achieving them. Reduce by 25% (1) industrial Reduce by 50% (1) absolute greenhouse gas emissions (2) use of water per ton produced by 2030 by 2025 Waste Conservation & Restoration Zero waste to landfill by Conserve/restore 100,000 2025 hectares by 2030 Partnerships & Recognitions 9 (1) Using 2018 consumption as a baseline (2) Greenhouse gas emissions scope 1 and 2
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 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 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 August 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% CMPC’s baby diaper Chile 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 Personal Care Products Source: CMPC 14
Packaging: favorable competitive position Cost competitiveness from fiber Long-term relationships with and vertical integration customers Food & Consumer Pharmaceutical Building Food & Chemicals & Industrial Produce Salmon Beverage Goods materials minerals agricultural products 15 Source: CMPC
Industry Drivers
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 81 84 35 350 333 79 329 322 77 76 75 72 38 30 300 34 35 36 27 33 70 30 32 28 29 69 26 68 25 28 24 23 25 250 23 21 22 128 130 123 139 142 117 146 149 153 112 157 161 166 20 200 128 Other Paper and Board 105 96 102 96 15 150 Tissue 10 100 119 117 112 113 116 Containerboard 104 105 99 102 110 105 110 108 107 105 102 100 98 50 Printing and Writing 39 39 38 39 38 37 37 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 Market Pulp by Final Use Specialty 16% 10% Fluff 38% Tissue 2% Mechanical 8% CWF 9% 18% UWF Packaging 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 Grow in all Focus on Innovate in bio- Strengthen business developing our economy and the core divisions people digitalization • Continue implementing • Create a forestry fund in Brazil • Develop the skills and talents • Strengthen CMPC’s position productivity programs in all to prepare for future organic to form a high-performance as a key player in the bio- our mills to increase asset growth team with strong culture economy • Evaluate growth alternatives • Develop new programs with a • Advance in digitalization and productivity (OEEs) in Packaging while capturing focus on gender equality and Industry 4.0 • Leverage the innovation eco- synergies inclusion of people with • Explore organic & inorganic disabilities system to generate value alternative for main Softys markets Prudent Financial Management Sustainability 21
Pulp Strategy: Improving margins through operational excellence Forest Base Expansion Operational Excellence Program Creation of a forestry fund in Brazil to prepare for future organic growth +8% 1 +7% 1 Plywood Laja Mill Pacifico Mill 2 Debottleneck & Modernization Initiatives Evaluation of debottleneck and modernization initiatives in our pulp mills to increase production L1:+10% 1 in our mills 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
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