Corporate Presentation June 2020
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 Biopackaging Tissue Pulp 16% 10% 46% 1 st Softys Largest LatAm Exporter 18% Boxboard Sales Assets $5,569 $15,142 5 th Pulp Global Producer Biopackaging 39% 66% Paper Sacks Softys 6% Softys 24% Investment Grade EBITDA Company $1,055 Fitch: BBB (stable) Moody’s: Baa3 (stable) S&P: BBB- (stable) Pulp 72% 5 1 Source: CMPC. Figures for the LTM as of March, 2020 (USD million) 2,3 Source: Hawkins Wright, RISI
Market Pulp Vertically integrated... 765,000 tons / year Tissue Paper 1.6 million Products m 3 / year Solid Wood Products 730,000 530,000 Planted hectares tons / year Boxboard HW 3,179,000 18.7 million m 3 harvested SW 779,000 69,000 827 million tons / year units / year tons / year Sackraft Paper Sacks Pulp ~90% Market Pulp 260,000 211,000 tons / year tons / year Corrugated boxes Containerboard 525,000 tons / year 396 MM Recycled Paper units / year Molded pulp trays 6 Source: CMPC as of December 2019
... and well-diversified player 7 Source: CMPC. Figures in USD million for the LTM as of March 31, 2020. Figures do not include Holding and Intercompany Sales
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 31, 2020 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 50% (1) absolute Reduce by 25% (1) industrial 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 improvements and forest management techniques.
Strategically located pulp facilities BSKP Cash Cost BHKP Cash Cost USD/ton CIF China USD/ton CIF China 600 600 500 500 400 400 Cash Cost st Canada Cash Cost 300 Others Europe 300 st Canada Other World BC stal BC Otros Mundo Int. West st Europe Sweden Finland andia USA USA rope 200 Cost ther Asia Finland 200 Canada Finlan East Indonesia Euro Japan Co Chile eria China USA USA Fi Uruguay East Eu Ot Iber Ot Fi Chile / / East Brazil Fi Oth Ea 100 100 Ur 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 30.000 35.000 40.000 Th. Metric Tons Th. Metric Tons 12 Source: CMPC, Hawkins Wright December 2019
11% 4% Colombia 13% 2% TM 1 : 228 Unique Region-Wide Tissue Market Presence G 2 : 4.1% More than 40 years of Top 5 tissue and sanitary Mexico expertise in the LatAm products producer in every TM 1 : 1,152 19% consumer business. major Latin American market. G 2 : 2.4% Focused on growth in key 52% 10% . markets and underpenetrated sanitary product markets. Steady expanding capacity, Ecuador 35% combination of organic & TM 1 : 78 inorganic growth. G 2 : 6,9% 20% 5% Peru Brazil TM 1 : 192 84% TM 1 : 1,285 68% G 2 : 7.3% G 2 : 4.0% 54% 29% 40% CMPC’s Tissue paper market share 18% CMPC’s baby diaper Chile paper market share TM 1 : 234 Uruguay G 2 : 4.6% TM 1 : 39 Argentina G 2 : 8.0% Source: CMPC, RISI, NRI Nielsen 1 TM: Total Tissue Market in th. tons as of 2019 TM 1 : 367 13 2 G: CAGR 2007-2017 G 2 : 3.5%
Comprehensive Portfolio of Well-Known and Well-Regarded Brands Tissue Paper Away from Home Personal Care Products Source: CMPC 14
Biopackaging: 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 450 424 418 414 410 409 405 401 392 394 399 395 383 400 371 369 363 94 95 93 91 91 343 89 87 85 333 82 84 81 350 79 329 322 77 76 75 39 72 38 36 300 33 34 35 27 32 70 30 28 29 69 26 68 25 28 24 23 23 250 21 22 Other Paper and Board 128 130 123 139 142 117 146 149 153 112 157 161 166 173 128 200 105 Tissue 96 102 96 150 Containerboard Printing and Writing 100 119 117 112 113 116 104 105 99 102 110 110 105 108 107 105 102 100 98 97 Newsprint 50 39 39 39 37 37 37 38 38 37 32 32 31 30 28 26 24 23 22 19 - - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 17 Source: RISI. Figures in million tons
Dynamics of the Pulp Market Source: Hawkins Wright 2019, CMPC 18
Dynamics of the Pulp Market Market Pulp by Final Use Market Pulp by Final Client of CMPC Traders Packaging Mechanical 5% 9% 1% Packaging 10% Fluff 11% Tissue Tissue 35% 42% 65 million 4 million P&W tons tons Specialty 22% 16% 21% 27% Specialty P&W Source: Hawkins Wright and CMPC, 2019 19
Tissue Paper Demand Dynamics Per capita annual consumption of tissue paper (in kilograms) (Countries where CMPC has operations are marked in green ) 30 USA 25 USA 2010 Hong Kong Tissue Paper App. Consumption (kg/capita) Canada Sweden 20 Austria Finland Denmark UK Netherlands Spain Italy 15 Portugal New Zealand Australia Croatia Chile France Costa Rica 10 Argentina Mexico Chile 2010 China Brazil Peru 5 Colombia Ecuador Russia China 2010 Thailand Vietnam Indonesia India 0 0 10 20 30 40 50 60 70 GDP per capita in USD '000 Source: RISI, World Bank and CMPC as of 2018 20
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 alternatives for main Softys markets Prudent Financial Management Sustainability 22
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