Corporate Presentation October 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 Blanca Lecaros colomba.henriquez@cmpc.cl petya.miteva@cmpc.cl blanca.lecaros@cmpc.cl +56 2 2441 2791 +56 2 24412713 +56 2 2441 2616 2
Sustainable Leader in P&P
Sustainable Leader in P&P Create Coexist Conserve A sustainable company that Founded in 1920 in Chile, with produces solid wood products, operations in 46 productive pulp, paper, tissue and packaging facilities across 8 Latin American products. countries and global sales to more Controlled by the Matte Group, than 45 countries. with 56% of the shares. CMPC in Numbers * 5,670 1,169 84 14,956 SALES EBITDA ASSETS NET INCOME USD million USD million USD million USD million 5 th 1 st 2 nd 2 nd* TISSUE MARKET PULP BOXBOARD PAPER SACKS Producer in LatAm Global Producer LatAm Exporter Global Producer 1,190 17,859 19,360 Investment Grade Pulp FOREST ASSETS CLIENTS DIRECT Fitch: BBB Softys Th. Hectares Moody’s: Baa3 Average COLLABORATORS Biopackaging S&P: BBB- At year end 4 * Hawkins Wright as of April, 2020. Source: CMPC, as of December, 2019.
Sustainable Leader in P&P Corporate Purpose – Create, Coexist, Conserve Create Coexist Conserve 325,995 551,708 Create the best solutions for the real needs AREAS FOR RECYCLED PAPER of individuals. PROTECTION AND USED CONSERVATION Metric tons Coexist with our stakeholders, generating Hectares 75% opportunities for mutual development. 90.3% WASTE RECOVERED Conserve the environment, because we are FOREST ASSETS fully aware that due to the nature of our raw materials and products, we are linked to CERTIFIED 417 nature. 66.5% INDIGENOUS COMMUNITIES RENEWABLE Chile and Brazil ENERGY In line with the UN Global Compact Sustainable > 4,800 Development Goals : 19.5 CHILDREN BENEFITED FACE MASKS CMPC Foundation Million units/year 5 years 4 Dow Jones GREEN FINANCING Sustainability Index Issuances and FTSE4Good 5 * Source: CMPC, as of December, 2019.
Sustainable Leader in P&P At the core of the bioeconomy Create Coexist Conserve Tissue and Paper Personal Production Continuous improvement Care Products Innovation Modernization Automation Forest Assets Packaging Products certified Solid Wood Products Pulp Production R&D Recycled Waste Collection Source: CMPC 6
Providing solutions from sustainable fibers
Providing solutions from sustainable fibers From certified high-yield plantations Create Coexist Conserve 1,189,680 729,958 90.3% CERTIFIED BY PRODUCTIVE FOREST ASSETS FSC AND PEFC PLANTATIONS Hectares Hectares Productive Plantations Research and Development Initiatives High growth rates Continue with genetic improvements and intensive forest management to increase productivity and Eucalyptus m 3 ssc/ha/year resilience of plantations. 43 43 23 20 11 E. Globulus E. Globulus Eucalypus Acacia E. Nitens Increase in volume of fiber produced % Iberian Chile Brazil Mangium Chile Radiata Pine Eucalyptus 1 20 Radiata Pine m 3 ssc/ha/year 11 5 4 2 1994-96 1994 96 2016-17 2016 17 1975 1975 2016 2016-17 17 Russia Scandinavia Canada USA Chile 8 1 Eucalyptus in Brazil and Nitens in Chile Source: CMPC
Providing solutions from sustainable fibers With cost-competitiveness advantages Create Coexist Conserve Chile*: : 125 km km (b (by tra train in) Chile*: : 98 km km Bra razil: : 260 km km (b (by barg rges) Bra razil: : 208 km km Strategically located pulp facilities with high environmental standards BSKP Cash Cost BHKP Cash Cost USD/ton CIF China USD/ton CIF China 600 600 500 500 400 400 Cash Cost Cash Cost 300 st Canada 300 stal BC BC stern Canada Other Europe /France ce Sweden Finland stern Europe Japan Int. West rope Other World Coast Belgium/F 200 200 Chile Euro Japan USA USA Co Fi Eastern Eu Canadá Uruguay Indonesia Finland USA USA China Iberia Ot East Chile / / Brazil East Ot 100 100 Ur Ea 0 0 0 5.000 10.000 15.000 20.000 25.000 30.000 - 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 Th. metric tons Th. metric tons 9 * Average distance, considering the capacity of pulp mills Source: CMPC, Hawkins Wright, August 2020
Providing solutions from sustainable fibers Innovating for our clients´ needs at every stage of life Create Coexist Conserve Softys, a Softy a lead ading com company in in La Lati tin Am America a wit ith op opera rations in in 8 8 coun countries Ef Effi ficient logi ogistics wit ith wide ide cov coverage 13% 2% 11% 18 production 4% 8 countries Mexico facilities MT 1 : 1,152 C 2 : 2.4% Colombia MT 1 : 228 45% recycled paper 20% C 2 : 4.1% 5% 19% 10% Brazil 52% MT 1 : 1,285 Personal C 2 : 4.0% Away from Tissue Care Ecuador Home Paper MT 1 : 78 Products 35% C 2 : 6.9% 84% Larg rge por ortfolio of f well-known and well-regarded bra rands 54% Peru MT 1 : 192 C 2 : 7.3% 68% Suppliers Distribution network 40% 29% Uruguay MT 1 : 39 C 2 : 8.0% 18% CMPC´s Tissue paper market share Chile (left bars) Senior Citizens MT 1 : 234 Away from CMPC´s Baby Diaper Families C 2 : 4.6% Babies Argentina paper market share Home and Homes Women ( right bars) MT 1 : 367 C 2 : 3.5% Source: CMPC, RISI, NRI Nielsen, as of December 2019 1 TM: Total Tissue Market in th. tons as of 2019 10 2 G: CAGR 2007-2017
Providing solutions from sustainable fibers To satisfy our clients’ packaging needs Create Coexist Conserve A wide range of products that are biodegradable… Corrugated Boxboard Sack Kraft 92% recycled paper 3% recycled paper Industrial Produce Salmon Building Chemicals & Retail Consumer Pharmaceuticals Food & agricultural Food and materials minerals Goods products Beverage 100% recycled paper * …and innovative Fresh salmon Paper bags for Paper leaf Fruit bags Biodegradable Boxboard with boxes pet food bags disposable cups separators Source: CMPC 11 * Without the handles
Creating value for all of our stakeholders
Creating value for all of our stakeholders Strengthening the leadership of our businesses Create Coexist Conserve Pulp Softys Biopackaging Growth Markets Innovation Forestry Expansion In preparation for the future growth Gain market share Products Brazil of our pulp operations Capillarity Processes Organic/inorganic growth Mexico Business models Positive demand trends Increasing profitability Leadership Markets Chile Commercial network Keep market share Argentina Expansions in line within the Corrugated segment synergies Peru organic market growth Uruguay Initiatives to increase productivity 60,000 tons and efficiency Tissue machine Zarate, Growth opportunities 1Q20 Argentina Debottlenecking in Pulp Modernization of solid Paper sacks growth strategy wood production facilities in the Americas Personal Care Products Growth in Personal Care Source: CMPC 13
Creating value for all of our stakeholders Through continuous improvement and operational excellence Create Coexist Conserve Productivity and efficiency initiatives Pulp Implementation of Lean Management initiatives focused on 2016 2019 2020* promoting leadership, management systems, efficient processes and continuous improvement in pulp and paper mills. 60% 68% 71% Plywood 68% 74% 74% Softwood 65% 74% 73% Hardwood Biopackaging 2017 2019 2020* 73% 76% 78% Boxboard Corrugated 79% 67% 82% Paper Softys** 2017 2019 2020* Tissue 71% 77% 81% Paper *End of June 2020 14 ** Total Productive Management (TPM), measured as Efficiency in Assets Source: CMPC
Creating value for all of our stakeholders Through a prudent financial management Financial Policies Net debt to EBITDA Interest coverage ratio 9,30x 8,19x 4,00x 8,30x 7,52x 6,78x 7,30x 3,50x 6,09x 3,2x 3,2x 5,61x 6,30x 5,12x 2,8x 3,00x 5,30x 2,2x 4,30x 2,50x 3,30x 2,0x 2,30x 2,00x 1,7x 1,30x 1,50x 0,30x 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1T19 2T19 3T19 4T19 1T20 2T20 Cash 1 / (18M Net Financial Interest + amortization) Financial debt to equity 0,90x 2,10x 1,86x 1,80x 0,80x 1,90x 1,70x 1,29x 0,70x 0,62x 1,50x 1,27x 1,29x 0,58x 1,13x 0,60x 1,30x 0,50x 0,45x 0,48x 1,10x 0,47x 0,50x 0,90x 0,70x 0,40x 0,50x 0,30x 0,30x 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Covenant Financial Policy 15 Source: CMPC, as of June 30, 2020 1 Cash = cash & cash equivalents + undrawn committed lines of credit
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