Earnings Presentation 4Q18
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 Record-high Full Year Pulp Production, reflecting best-in-class execution Continued Net Debt to EBITDA Ratio downtrend. 7th Consecutive Quarter of debt reduction Large-scale Latin American producer of Strong cash generation positions the Company Pulp, Tissue, Wood, to take advantage of future opportunities Paper & Packaging products, serving global and local Focus on diversification with long-term markets strategic outlook and financial discipline 3
4Q18 Highlights Op Oper erational l & & Financial l High ghli lights In USD Milllion 4Q17 3Q18 4Q18 QoQ YoY Revenues 1,312 1,623 1,538 -5% 17% Pulp market continues to be supportive COGS (876) (923) (938) 2% 7% Hardwood CIF 726 US$/ton Other Operational Expenses (182) (193) (197) 2% 9% Softwood CIF 806 US$/ton EBITDA 254 254 508 508 403 403 -21% 59% 59% Pulp production of 1,029,000 tons, down 3% EBITDA margin % 19.3% 31.3% 26.2% -510 bps 684 bps QoQ and up 19% YoY. 12-month 2018 Operational Result 95 336 226 -33% 139% production reached an all time corporate Non Operational Result (89) (185) (114) -38% 29% historical record of 4,115,000 tons. EBITDA of US$403 million, down 21% QoQ Net Income 6 151 151 112 112 -26% 1731% 1731% and up 59% YoY. 2018 full year EBITDA of 3 rd rd Party Volumes USD1,816 million, up 68% compared to 2017 4Q17 3Q18 4Q18 QoQ YoY Free cash flow reached US$221 million, down Forestry + Solid Wood Prod. (1) 778 748 797 7% 2% from US$324 million in 3Q18 (-32%) and up Market Pulp (2) 713 925 868 -6% 22% from US$28 million in 4Q17 (+679%) Packaging (2) 183 220 204 -7% 12% Net debt was US$2,853 million, down 3% QoQ Tissue Papers (2) 167 176 172 -2% 3% and 11% YoY Sanitary Products (3) 1,265 1,423 1,432 1% 13% Net debt to EBITDA ratio continued its (1) Th. m 3 downtrend reaching 1.6x – 7th consecutive (2) Th. Tons quarterly decrease (3) M. units Net Income of USD112 million, decreasing 26% QoQ and increasing more than 1.000% YoY. Net Annual Income totaled USD502 million, a considerable increase from the USD103 million in 2017. 4
COGS and Other Operating Expenses COGS (USD D Million) Other er Op. . Exp (USD D Million) +7% +9% 938 923 876 197 193 182 +2% +2% 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 COGS COG Ot Other er Op Oper erational l Expe Expenses Up 2% QoQ: Up 2% QoQ: (+) Higher operating costs in Pulp and (+) Higher SG&A in all business divisions Up 9% YoY: Softys Up 7% YoY: (+) Higher distribution costs (+) Higher sales volumes, especially Pulp (-) Depreciation of local currencies (+) Higher pulp prices in Softys and Papers 5
Pulp Business Rev evenu nues: : -9% QoQ, +26% YoY Fore orestr try Sale les Vol olumes: +7% QoQ, +20% YoY Sales * EBITDA* 807 +26% 886 Fore orestr try Pr Prices: stable QoQ, +10% YoY 470 +74% 135 369 144 639 Pulp Pulp Pro Produ duction: -3% QoQ, +19% YoY 120 -9% 212 Planned maintenance downtime at Guaíba I and Laja 751 -21% 663 519 Pulp Pulp Sale les Vol olumes: - QoQ (-6%) 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 -11% BSKP: Lower exports to China Pulp Forestry -4% BEKP: Lower exports to China and Europe - YoY (+22%) Third Party Sales Volumes -16% BSKP: Lower exports to Europe and Asia 4Q17 3Q18 4Q18 QoQ YoY +34% BEKP: Higher production at Guaíba II, lead to higher - Pulpwood 27 21 16 -24% -42% sales to all markets - Sawing Logs 367 363 350 -3% -4% - Sawn Wood 169 178 219 23% 30% Pulp Pulp Pri Prices: BSKP US$806/ton, BEKP US$726/ton - Remanufactured Wood 35 43 45 3% 27% - Plywood 87 112 112 0% 29% EB EBITDA: - Others 93 31 55 76% -41% -- QoQ (-21%) Total ( t h. m 3 ) 778 778 748 748 797 797 7% 7% 2% 2% Lower sales volumes and prices of both fibers Higher operating costs due to scheduled maintenance and BSKP 175 164 147 -11% -16% forest protection BEKP 538 761 721 -5% 34% -- YoY (+74%) Total Market Pulp ( Th. Tons) 713 713 925 925 868 868 -6% 22% 22% Higher pulp prices and volumes P&W Guaiba (Th. Tons) 8 10 8 -22% -4% Higher prices and sales volumes of forestry products 6 * Figures in US$ million
Softys Business Rev evenu nues: +2% QoQ, +6% YoY Sales* EBITDA* Vol olumes: +6% -35% 509 38 -- Tissue Paper 500 480 29 -2% QoQ, lower volumes in all countries, except Mexico 25 +3% YoY, increases in Chile, Mexico and Peru, offset by decrease in Argentina +2% -14% -- Sanitary Products: +1% QoQ, supported by higher baby diaper volumes in 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 Brazil, Mexico and Argentina partly offset by lower feminine care products in Argentina and Brazil Third Party Sales Volumes +13% YoY, driven by higher diaper volumes in Brazil, Peru, 4Q17 3Q18 4Q18 QoQ YoY Argentina and Colombia - Chile 38 40 40 0% 7% Pri Prices (in USD): - Brazil 35 35 34 -1% -2% +2% QoQ for Tissue Paper - Mexico 32 35 35 1% 9% +7% QoQ for Sanitary Products - Argentina 24 24 23 -6% -7% Third Party Sales Volumes - Peru 22 25 25 -2% 9% EB EBITDA: - Uruguay 5 5 5 -5% -4% -- QoQ (-14%) - Colombia 6 7 7 -7% 2% Higher operating costs in Mexico - Ecuador 4 4 4 -13% 0% Higher SG&A expenses in Chile and Brazil Total Tissue Paper ( Th. Tons) 167 167 176 176 172 172 -2% 3% 3% -- YoY (-34%) - Diapers 769 839 862 3% 12% - Feminine Care 320 318 322 1% 1% Negative effect of hyperinflation in Argentina - Others 176 266 248 -7% 41% Negative effect of currency depreciation Total Sanitary ( M . Unit s) 1,265 1,423 1,432 1% 1% 13% 13% Higher direct costs of fiber 7 * Figures in US$ million
Packaging Business Sales* EBITDA * Rev evenu nues: -6% QoQ, +15% YoY 237 +15% Vol olumes: 222 23 -11% 193 -- QoQ (-3% ) 12 Lower volumes of all products except seasonally higher 11 -6% volumes in corrugated boxes -54% -- YoY (+12% ) Higher volumes of boxboard 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 Pri Prices: stable QoQ, +3% YoY Third Party Sales Volumes EB EBITDA : 4Q17 3Q18 4Q18 QoQ YoY Third Party Sales Volumes - Boxboard 61 109 96 -12% 58% -- QoQ (-54% ) - Paper Bags 22 24 22 -7% -1% Lower revenues from boxboard sales - Other Papers 24 24 22 -9% -11% Higher corrugated boxes due seasonal sales - Corrugated Paper 33 27 23 -15% -30% -- YoY (-11% ) - Corrugated Boxes 39 32 38 21% -3% Higher fiber costs - Molded Pulp Trays 3 5 3 -31% -6% Total ( Th. Tons) 183 183 220 220 204 204 -7% 12% 12% 8 * Figures in US$ million
Global Pulp Market Bleached Kraft pulp demand declined 0.9% (-569,000 tons), year on year, the first full-year decline reported since the 2008 Great Recession: Softwood demand decreased by 3.2% (-833,000 tons) Hardwood demand increased by 0.4% (+124,000 tons) Eucalyptus demand rose by 2.7% (+636,000 tons) Chinese demand fell 2.7% (-530,000 tons), while North America decreased 4.6% (-366,000 tons). Western Europe increased by 1.4% (+210,000 tons) and Eastern Europe rose 6.9% (+172,000 tons). Global market pulp producer stocks ended December 2018 at 38 days for softwood and 56 days for hardwood, compared to 28 days and 41 days, respectively, at the end of December 2017 BKP Demand Growth by Grade BKP Demand Growth by Region 12 months 2018 vs 2017- th.Tons and % change 12 months 2018 vs 2017- th. Tons and % change 800 300 +2.7% +1.4% +6.9% 200 600 100 +0.8% +0.3% 0 400 -100 -0.7% 200 -200 +1.0% -300 0 -400 -4.6% -500 -14.0% -200 -2.5% -600 -5.7% North Western Eastern Latin Japan China Other -1.9% America Europe Europe America Asia/Africa -4.7% -400 Northern Southern Radiata Northern Southern Eucalyptus Softwood Softwood Softwood Hardwood Hardwood 9 Source: PPPC, World Chemical Market Pulp Global 100 Report – December 2018
Recommend
More recommend
