Earnings Presentation 1Q20
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. 2
Opening Comments Improved results in Softys and Biopackaging, result of diversification strategy Challenging pulp market environment A 100 years company, continues affecting pulp prices leading sustainable producer of pulp, Efficiency and Productivity under constant tissue, wood and progress, reflected in the businesses packaging products, based in Latin Conservative capital structure and strong America with global liquidity position to face a challenging scenario commercial presence. 3
1Q20 Highlights Op Oper erational l & & Financial l High ghli lights Pulp sales volumes of 913,000 tons, 3% lower In USD Milllion 1Q19 4Q19 1Q20 QoQ YoY QoQ and 11% higher YoY. Revenue 1.449 1.372 1.348 -2% -7% Hardwood CIF 464 USD/ton COGS (919) (942) (936) -1% 2% Softwood CIF 557 USD/ton Other Operational Expenses (195) (207) (190) -8% -2% Biopackaging sales volumes of 230,000 tons, EBITDA 335 335 223 223 222 222 -1% -34% 4% higher QoQ and 9% YoY. EBITDA margin % 23,1% 16,2% 16,4% 20 bps -667 bps Tissue sales volumes of 216,000 tons, up 9% Operational Result 164 35 30 -15% -82% QoQ and 25% YoY. Non Operational Result (107) (53) (162) 204% 51% Personal care product sales volumes reached Net Income 57 57 (18) (132) 626% 626% N/A 1,773 million units, increasing 6% QoQ and 18% YoY. 3 rd rd Party Volumes 1Q19 4Q19 1Q20 QoQ YoY EBITDA of USD222 million, 1% lower QoQ and Forestry + Solid Wood Prod. (1) 819 861 896 4% 9% 34% lower YoY. Market Pulp (2) 823 940 913 -3% 11% Free cash flow reached USD102 million, Biopackaging (2) 210 222 230 4% 9% compared to a negative USD186 million in Tissue Papers (2) 173 198 216 9% 25% 4Q19 and negative USD56 million in 1Q19. Personal Care Products (3) 1.506 1.665 1.773 6% 18% Net debt to EBITDA ratio of 3,2x, compared to 2.8x in 4Q19 and 1.7x in 1Q19. Net loss of USD132 million, compared to Net loss of USD18 million in 4Q19 and Net income of USD57 million in 1Q19. 4
COGS and Other Operating Expenses COGS (USD Mill COG illion) Oth Other Op Op. Ex Exp (USD SD Mil illi lion) +2% 942 936 919 -2% 207 195 190 -1% -8% 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 COG OGS Ot Other er Op Oper erational l Expe Expenses Down 1% QoQ: Down 8% QoQ: (+) Lower operational costs in Softys and (+) Lower administrative expenses in every Biopackaging. business and lower marketing expenses in (-) Higher costs in Pulp related to forest fire Softys prevention efforts and lower operational (-) Higher distribution costs in Pulp performance. Down 2% YoY: Up 2% YoY: (+) Lower administrative expenses in Pulp and (-) Higher direct costs from an increase in sales Softys and lower marketing expenses in Softys. volumes in all business areas. (+) Positive effect due to a local currency (+) Higher efficiencies, lower fiber costs and a depreciation, both QoQ and YoY positive effect related to local currency depreciation. (-) Higher distribution costs in Softys 5
Pulp Business Rev Revenu nues: : -3% QoQ, -19% YoY Fore orestr try Sale les Vol olumes: +4% QoQ, +9% YoY EBITDA* EBI Fore orestr try Pr Prices: -4% QoQ, -16% YoY Sale les* -58% -19% 718 283 Pulp Pulp Produ duction: -3% QoQ, +7% YoY -3% 594 579 129 QoQ: Lower production of Santa Fe II and Guaíba II. 119 119 YoY: Higher production due to lower maintenances. 148 119 589 -19% 475 460 Pulp Pulp Sal ales Vol olumes - QoQ (-3%) +11% BSKP: Higher sales to Asia (excl. China) and Latin America. 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 -6% BEKP: Lower exports to Asia (excl. China) and Europe. Forestry Pulp - YoY (+11%) +20% BSKP: Higher exports to Asia and Europe. +9% BEKP: Higher sales in Asia (excl. China), the US, Europe and Third Party Sales Volumes Middle East. 1Q19 4Q19 1Q20 QoQ YoY - Pulpwood 33 77 72 -6% 117% Pulp Pulp Prices: BSKP USD557/ton, BEKP USD464/ton - Sawing Logs 341 351 375 7% 10% - Sawn Wood 170 158 149 -6% -12% EB EBITDA: - Remanufactured Wood 46 45 48 6% 4% -- QoQ (-19%) - Plywood 105 115 121 5% 15% Lower prices and sales volumes in hardwood. - Others 123 115 131 14% 7% Higher operating costs related to forest fire prevention efforts Total ( t h. m 3 ) 819 819 861 861 896 896 4% 4% 9% 9% and a lower operational performance. BSKP 158 170 189 11% 20% -- YoY (-58%) BEKP 665 769 724 -6% 9% Total Market Pulp ( Th. Tons) 823 823 940 940 913 913 -3% 11% 11% Lower pulp sales due to hardwood (-33%) and softwood prices P&W Guaiba (Th. Tons) 11 13 12 -6% 12% (-21%) Higher pulp sales volumes and lower costs related to scheduled maintenances. 6 * Figures in USD million
Softys Business Rev evenu nues: -2% QoQ, +10% YoY Vol olumes: -- Tissue Paper: Sale les* s* EBI EBITDA* +9% QoQ, higher volumes in every market, especially Brazil (+13%) mainly due to SEPAC consolidation and +10% 558 545 +173% 86 Chile (+9%). 495 64 +25% YoY, higher sales volumes in Brazil, Chile and Argentina, driven by a higher demand due to COVID-19 32 -2% +35% and the SEPAC consolidation. -- Personal Care Products: +6% QoQ, supported by higher volumes of wet wipes (in 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Chile, Peru and Uruguay) and feminine care products (mainly in Argentina and Uruguay). Third Party Sales Volumes +18% YoY, driven by higher sales in every category with 1Q19 4Q19 1Q20 QoQ YoY increases of diapers in almost every market, wet wipes in - Chile 39 39 43 9% 9% Chile and Peru, and feminine care products in Chile, - Brazil 32 59 66 13% 109% Argentina and Peru. - Mexico 39 38 40 6% 1% Pri Prices (in USD): - Argentina 23 24 26 7% 10% Third Party Sales Volumes -6% QoQ; -13% YoY for Tissue Paper - Peru 24 25 26 5% 8% - Uruguay 5,0 5,3 5,9 12% 18% -11% QoQ, -2% YoY for Personal Care Products - Colombia 6,6 6,9 7,6 9% 14% EB EBITDA: - Ecuador 4,1 2,1 2,3 13% -42% -- QoQ (+35%) Total Tissue Paper ( Th. Tons) 173 173 198 198 216 216 9% 9% 25% 25% -- YoY (+173%) - Diapers 866 1.004 996 -1% 15% - Feminine Care 346 322 364 13% 5% Higher sales volumes in tissue and personal care products, - Others 294 338 412 22% 40% and higher prices in local currencies, partially offset by Total Personal Care ( M . Unit s) 1.506 1.665 1.773 6% 6% 18% 18% their depreciation. Lower operating costs due to lower prices in fiber, lower SG&A, and also efficiencies and productivity initiatives. * Figures in USD million 7
Biopackaging Business Rev evenu nues: +2% QoQ, -5% YoY Vol olumes: EBI EBITDA * Sale les* -- QoQ (+4% ) -5% -14% 236 Higher volume sales of corrugated boxes, molded pulp trays 224 220 29 25 and corrugated paper. Partially offset by lower volumes of paper bags. 13 +2% -- YoY (+9% ) Higher sales of boxboard and corrugated paper. +102% Lower volumes of paper bags and corrugated boxes. 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Pri Prices: -2% QoQ, -13% YoY EB EBITDA : Third Party Sales Volumes -- QoQ (+102% ) 1Q19 4Q19 1Q20 QoQ YoY Higher revenues associated to corrugated products. - Boxboard 93 113 113 1% 22% Lower operational costs due to lower prices of fiber and an - Paper Bags 21 20 18 -10% -16% increased productivity in the corrugated paper boxboard - Other Papers 19 26 19 -25% 3% mills. Slightly lower administrative expenses. - Corrugated Paper 23 26 28 6% 22% - Corrugated Boxes 48 35 46 33% -5% -- YoY (-14% ) - Molded Pulp Trays 6 3 5 102% -8% Lower sales from the corrugated segment and paper bags, Total ( Th. Tons) 210 210 222 222 230 230 4% 4% 9% 9% besides lower average sales prices. Offset by lower operational costs due to lower prices of fiber and an increase in boxboard operational efficiency and sales. 8 * Figures in USD million
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