Corporate Presentation October 2020 Forward-Looking Statements - - PowerPoint PPT Presentation

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Corporate Presentation

October 2020

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Colomba Henríquez colomba.henriquez@cmpc.cl +56 2 2441 2791 Petya Miteva petya.miteva@cmpc.cl +56 2 24412713 Blanca Lecaros blanca.lecaros@cmpc.cl +56 2 2441 2616

2

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.

Forward-Looking Statements Investor Relations Contacts

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Sustainable Leader in P&P

SLIDE 4

A sustainable company that produces solid wood products, pulp, paper, tissue and packaging products. Controlled by the Matte Group, with 56% of the shares. Founded in 1920 in Chile, with

• perations in 46 productive

facilities across 8 Latin American countries and global sales to more than 45 countries.

Pulp Softys Biopackaging 4

Create Coexist Conserve

* Hawkins Wright as of April, 2020. Source: CMPC, as of December, 2019.

CMPC in Numbers *

SALES

USD million

5,670

EBITDA

USD million

1,169

NET INCOME

USD million

84

ASSETS

USD million

14,956

MARKET PULP Global Producer TISSUE Producer in LatAm

2nd

PAPER SACKS Global Producer

5th

BOXBOARD LatAm Exporter

1st

FOREST ASSETS

• Th. Hectares

1,190

CLIENTS

Average

19,360

DIRECT COLLABORATORS

At year end

17,859

Fitch: BBB Moody’s: Baa3 S&P: BBB-

Investment Grade

Sustainable Leader in P&P

2nd*

SLIDE 5

5

Corporate Purpose– Create, Coexist, Conserve

Create Coexist Conserve

Create the best solutions for the real needs

• f individuals.

Coexist with our stakeholders, generating

• pportunities for mutual development.

Conserve the environment, because we are

fully aware that due to the nature of our raw materials and products, we are linked to nature. In line with the UN Global Compact Sustainable Development Goals: RENEWABLE ENERGY

66.5%

AREAS FOR PROTECTION AND CONSERVATION

Hectares

325,995

Dow Jones Sustainability Index and FTSE4Good

5 years

RECYCLED PAPER USED

Metric tons

551,708

WASTE RECOVERED

75%

GREEN FINANCING

Issuances

4 Sustainable Leader in P&P

FACE MASKS

Million units/year

19.5

INDIGENOUS COMMUNITIES

Chile and Brazil

417

FOREST ASSETS CERTIFIED

90.3%

CHILDREN BENEFITED CMPC Foundation

> 4,800

* Source: CMPC, as of December, 2019.

SLIDE 6

Continuous improvement Modernization Automation Pulp Production Recycled Waste Collection Solid Wood Products

Forest Assets certified

Paper Production Packaging Products Tissue and Personal Care Products

Create Coexist Conserve

6

R&D

At the core of the bioeconomy

Sustainable Leader in P&P

Source: CMPC

Innovation

SLIDE 7

Providing solutions from sustainable fibers

SLIDE 8

1 Eucalyptus in Brazil and Nitens in Chile

Source: CMPC

Productive Plantations Research and Development Initiatives

Create Coexist Conserve

8

CERTIFIED BY FSC AND PEFC

90.3%

FOREST ASSETS

Hectares

1,189,680

PRODUCTIVE PLANTATIONS

Hectares

729,958 Providing solutions from sustainable fibers

From certified high-yield plantations

1975 1975 2016 2016-17 17 1994 1994-96 96 2016 2016-17 17

High growth rates

Radiata Pine m3ssc/ha/year

11 20 23 43 43

• E. Globulus

Iberian

• E. Globulus

Chile Acacia Mangium Eucalypus Brazil

• E. Nitens

Chile

Eucalyptus m3ssc/ha/year Increase in volume of fiber produced %

Continue with genetic improvements and intensive forest management to increase productivity and resilience of plantations. 2 4

5

11 20

Russia Scandinavia Canada USA Chile Eucalyptus1 Radiata Pine

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9

BSKP Cash Cost

USD/ton CIF China

BHKP Cash Cost

USD/ton CIF China Create Coexist Conserve

* Average distance, considering the capacity of pulp mills Source: CMPC, Hawkins Wright, August 2020

• Th. metric tons
• Th. metric tons

Cash Cost Cash Cost

Chile*: : 98 km km Bra razil: : 208 km km Chile*: : 125 km km (b (by tra train in) Bra razil: : 260 km km (b (by barg rges)

Strategically located pulp facilities with high environmental standards

Providing solutions from sustainable fibers

With cost-competitiveness advantages

100 200 300 400 500 600

5.000 10.000 15.000 20.000 25.000 30.000

East stern Europe Ot Other World Chile USA USA Co Coast stal BC BC Fi Finland Sweden Japan East stern Canada

• Int. West

st Canada Ot Other Europe 100 200 300 400 500 600

• 5.000

10.000 15.000 20.000 25.000 30.000 35.000 40.000 Brazil Chile /

/

Ur Uruguay Japan

Belgium/F /France ce

USA USA Finland Iberia China Canadá Ea Eastern Eu Euro rope Indonesia

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Innovating for our clients´ needs at every stage of life

10

Ef Effi ficient logi

• gistics wit

ith wide ide cov coverage

18 production facilities Away from Home Personal Care Products Distribution network Suppliers Families and Homes Away from Home Senior Citizens Babies Women 8 countries

45% recycled paper

Tissue Paper

Softy Softys, a a lead ading com company in in La Lati tin Am America a wit ith op

• pera

rations in in 8 8 coun countries

Create Coexist Conserve

Ecuador

MT1: 78 C2: 6.9%

19% 10%

Brazil

MT1: 1,285 C2: 4.0%

20% 5% 84% 54%

Uruguay

MT1: 39 C2: 8.0%

Colombia

MT1: 228 C2: 4.1%

11% 4% 13% 2%

Mexico

MT1: 1,152 C2: 2.4%

Chile

MT1: 234 C2: 4.6%

68% 29% 40% 18%

Argentina

MT1: 367 C2: 3.5%

Peru

MT1: 192 C2: 7.3%

52% 35%

CMPC´s Tissue paper market share (left bars) CMPC´s Baby Diaper paper market share (right bars) Source: CMPC, RISI, NRI Nielsen, as of December 2019

1 TM: Total Tissue Market in th. tons as of 2019 2 G: CAGR 2007-2017

Providing solutions from sustainable fibers

Larg rge por

• rtfolio of

f well-known and well-regarded bra rands

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A wide range of products that are biodegradable…

Source: CMPC * Without the handles

11

Food and Beverage Consumer Goods Pharmaceuticals Building materials Food & agricultural products Chemicals & minerals Industrial Produce Salmon

Corrugated Sack Kraft Boxboard

Retail

92% recycled paper 100% recycled paper *

…and innovative

Paper bags for pet food Paper leaf bags Fruit bags Fresh salmon boxes Boxboard with separators Biodegradable disposable cups

3% recycled paper

Create Coexist Conserve

To satisfy our clients’ packaging needs

Providing solutions from sustainable fibers

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Creating value for all of our stakeholders

SLIDE 13

Source: CMPC

13

Strengthening the leadership of our businesses

Growth Markets Leadership Markets

60,000 tons Zarate, Argentina Tissue machine 1Q20

Gain market share Capillarity Organic/inorganic growth Positive demand trends Keep market share Expansions in line within the

• rganic market growth

Chile Argentina Peru Uruguay Brazil Mexico

Pulp Softys

Forestry Expansion

Biopackaging

In preparation for the future growth

• f our pulp operations

Commercial network Corrugated segment synergies Innovation Products Processes Business models Create Coexist Conserve

Creating value for all of our stakeholders

Initiatives to increase productivity and efficiency Debottlenecking in Pulp Modernization of solid wood production facilities Growth opportunities Paper sacks growth strategy in the Americas Personal Care Products Growth in Personal Care Increasing profitability

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Create Coexist Conserve

14

*End of June 2020 ** Total Productive Management (TPM), measured as Efficiency in Assets Source: CMPC

Pulp Softys** Biopackaging

2017 2019 2020*

Tissue Paper 71% 77% 81%

2016 2019 2020*

Plywood 60% 68% 71% Softwood 68% 74% 74% Hardwood 65% 74% 73%

2017 2019 2020*

Boxboard 73% 76% 78% Corrugated Paper 79% 67% 82% Implementation of Lean Management initiatives focused on promoting leadership, management systems, efficient processes and continuous improvement in pulp and paper mills.

Productivity and efficiency initiatives

Through continuous improvement and operational excellence

Creating value for all of our stakeholders

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15

Net debt to EBITDA Interest coverage ratio

Financial Policy Covenant

Source: CMPC, as of June 30, 2020

1 Cash = cash & cash equivalents + undrawn committed lines of credit

Financial Policies

Financial debt to equity Cash1 / (18M Net Financial Interest + amortization)

Through a prudent financial management

Creating value for all of our stakeholders

1,7x 2,0x 2,2x 2,8x 3,2x 3,2x 1,50x 2,00x 2,50x 3,00x 3,50x 4,00x 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 0,47x 0,45x 0,48x 0,50x 0,62x 0,58x 0,30x 0,40x 0,50x 0,60x 0,70x 0,80x 0,90x 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1,80x 1,29x 1,86x 1,29x 1,13x 1,27x 0,30x 0,50x 0,70x 0,90x 1,10x 1,30x 1,50x 1,70x 1,90x 2,10x 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 8,19x 7,52x 6,78x 6,09x 5,61x 5,12x

0,30x 1,30x 2,30x 3,30x 4,30x 5,30x 6,30x 7,30x 8,30x 9,30x

1T19 2T19 3T19 4T19 1T20 2T20

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16

Source: CMPC. Figures in USD million for the LTM as of June 30, 2020. Figures do not include Holding and Intercompany Sales

• High diversification which

generates more stable

• perating income
• Domestic sales and

exports represent 52% and 48% of our sales respectively

• The largest market

represents less than 20%

• f our sales
• The largest client

represents less than 10%

• f our sales

Through diversification

Creating value for all of our stakeholders

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Corporate Governance Structure

17

Create Coexist Conserve

* Source: CMPC

With high corporate governance standards

Creating value for all of our stakeholders

Board of Directors

• Elected every 3 years at the Annual

Shareholder Meeting

• High level of industry experience
• Committee’s structure with focus on

strategic issues

Senior Management

• Controlling Group does not

participate in management positions

• Variable annual bonus tied to

strategic objectives and the fulfillment of profitability goals for each business area

• Culture of integrity that guides the

daily actions of all collaborators

• High standard corporate policies

approved by the Board and known to all

• Emphasis on the prevention of

corruption and fair competition practices

Integrity and Compliance Program

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Source: CMPC

18

Create Coexist Conserve

Through innovation

Creating value for all of our stakeholders

Product Development

Solutions that create value through unique qualities and encourage disruptive technological innovations

Circular bioeconomy Digital transformation Collaboration networks

Lead CMPC to be a global leader in digital transformation and advanced analytics Strengthen our relationships with start-ups, universities, and R&D centers to reinforce CMPC’s global connectedness Creating value and fostering sustainability at CMPC through bioeconomy solutions Contribute towards environmental goals Recover byproducts Maximize raw material value

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Environmental Goals

Reduce by 25%(1) the industrial use of water per metric ton produced by 2025

Zero industrial waste to

landfill by 2025 Reduce by 50%(1) absolute greenhouse gas emissions(2) by 2030. Add 100,000(1) hectares for conservation and/or protection by 2030. In celebration of our 100-year anniversary, we set tangible environmental goals to be reached by 2025 and 2030.

19

2018 2019 2025

674 th. tons 578 th. tons 30.96 m3/ton 31.33 m3/ton

23.22 m3/ton

322 th. ha 326 th. ha

422 th ha

2,317 th. tCO2e/year 2,388 th. tCO2e/year

1,158 th. tCO2e/year 2018 2019 2025 2018 2019 2030 2018 2019 2030

Create Coexist Conserve

(1) Using 2018 as a baseline (2) Scope 1 and 2 Source: CMPC

Through protection of the environment

Creating value for all of our stakeholders

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CMPC collaborators Local development and community engagement

Create Coexist Conserve

20 20

CMPC contributes to the development of education and culture for local students through capacity building for local players and the formation of long-term partnerships.

Education

• Reading Promotion Program
• Teacher Training
• HIPPY Chile
• Creating and Growing

CMPC Foundation Talent development programs Diversity and Inclusion Policy

CMPC´s collaborators have an individual development plan based

• n

specific

• bjectives and Company-wide competencies.

In 2019,

80%

• f

Executives and Professional and Technical Staff and 16,3%

• f Operators received formal evaluation.
• We promote dignity and respect
• We act with equity
• We count on inclusive policies and

practices

• We foster inclusive and diverse working

environments

• We value everyone´s opinion

Unionization

60.4%

GPTW Satisfaction

79%

Hours of training as total hours worked

0.71%

Women

15.4%

Culture

• Alessandri Park in Coronel
• Artequin Museum in Los Angeles
• Alessandri Park in Nacimiento

CMPC engages directly and honestly with the residents of territories neighboring its through:

• Regular meetings with social organizations
• Information about forestry operations
• Programs and workshops held for the community at large
• Visits to production facilities
• Environmental talks
• Local community investments
• Protection of high-value indigenous cultural sites

Through our commitment with collaborators and local communities

Creating value for all of our stakeholders

Source: CMPC

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21

I. Production Capacities

• II. Industry Fundamentals
• III. Consolidated Results
• IV. Green Financing

Appendix

SLIDE 22

Forest Assets

Chile

449,000

Planted Has.

Pine

64%

Eucalyptus 32%

Brazil

181,000 100%

Argentina

58,200

Pine 100%

Pulp

360,000

Tons

Laja Mill BSKP Brazil

1,930,000 520,000

Pacífico Mill BSKP

1,496,000

Santa Fe Mill BHKP 22 Guaiba Mill BHKP

Sawn wood

960,000

m3 Remanufactured wood

190,000

Plywood

500,000

Solid wood products

Chile Chile Chile

Tissue Paper Personal Care Products

Diapers

3,970

Feminine Care

1,386

Tons Million units

530,000

Chile

827

Million sacks Peru Mexico Argentina

69,000

Sackraft Chile

260.000 211.000 396 Chile

Molded Pulp Trays Corrugated boxes Corrugated Paper Tons

Boxboard Paper Sacks Corrugated

Chile Million units Tons Tons Tons

Eucalyptus

*As of December 31, 2019

Pulp Softys Biopackaging

• I. Production Capacity*

286,400 190,000 186,400 179,700 157,000 42,500 32,100

Chile Brazil Argentina Mexico Peru Uruguay Colombia

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23

39 37 37 37 39 38 39 38 37 32 32 31 30 28 26 24 23 22 19 104 99 102 105 112 113 117 119 116 105 110 110 108 107 105 102 100 98 97 96 96 102 105 112 117 123 128 130 128 139 142 146 149 153 157 161 166 173 21 22 23 23 24 25 26 27 28 28 29 30 32 33 34 35 36 38 39 69 68 70 72 75 76 79 82 81 77 84 85 87 89 91 91 93 95 94

• 50

100 150 200 250 300 350 400 450 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

329 322 333 343 363 369 383 394 392 371 395 399 401 405 409 410 418 414 424

Source: RISI. Figures in million tons

Other Paper and Board Tissue Containerboard Printing and Writing Newsprint

Global Paper Demand Evolution

Population Growth Urbanization Economic Growth Rising disposable income Increase in Product Quality E-Commerce Circular Economy Intelligent Packaging

• II. Industry Fundamentals

SLIDE 24

24

Source: Hawkins Wright August 2020, CMPC

Pulp Market Dynamics

• II. Industry Fundamentals

SLIDE 25

25

36% 27% 23% 11% 3% Tissue P&W Packaging Traders

4 million tons

42% 22% 15% 10% 2% 9% Tissue P&W Packaging Specialty

66 million tons

Fluff Mechanical Specialty

Source: Hawkins Wright August 2020, CMPC

Market Pulp by Final Use Market Pulp by Final Client of CMPC

Pulp Market Dynamics

• II. Industry Fundamentals

SLIDE 26

India Indonesia Vietnam Thailand Russia Ecuador Colombia China China 2010 Peru Brazil Argentina Mexico Croatia Chile Chile 2010 Costa Rica Italy France Portugal Spain Australia Netherlands New Zealand UK Finland Denmark Austria Sweden Hong Kong Canada USA USA 2010 5 10 15 20 25 30 10 20 30 40 50 60 70

Tissue Paper App. Consumption (kg/capita) GDP per capita in USD '000 26

Source: RISI, World Bank and CMPC as of 2018

Per capita annual consumption of tissue paper (in kilograms)

(Countries where CMPC has operations are marked in green)

Tissue Paper Demand Dynamics

• II. Industry Fundamentals

SLIDE 27

27

* Figures in USD million

• III. Consolidated Results*

Sales per business EBITDA per business Operating Costs 2019 Sales 2019 EBITDA Administrative Expenses

Pulp Pulp 77% 77% Biopackaging 6% 6% Soft

• ftys

ys 17% 17%

1,169

Pulp Pulp 47% 47% Biopackaging 16% 16% Soft

• ftys

ys 37% 37%

5,670

711 11 579 79 547 47 1.42 428 1.12 125 512 12 545 45 495 95 1.00 007 1.04 041 220 20 224 24 198 98 456 56 422 22

2Q19 1Q20 2Q20 6M19 6M20 Biopackaging Softys Pulp 1,442 1,348 2,891 1,240 2,588 274 274 119 119 164 164 558 558 283 283

46 46 86 86 76 76 77 77 163 63 17 17 25 25 27 27 46 46 52 52

2Q19 1Q20 2Q20 6M19 6M20 Biopackaging Softys Pulp 325 222 257 660 479

928 28 936 36 804 04 1.84 848 1.74 741

2Q19 1Q20 2Q20 6M19 6M20

189 89 190 90 178 78 384 84 368 68

2Q19 1Q20 2Q20 6M19 6M20

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28

Net Income Free Cash Flow Investments Gross Debt Net Debt Cash

* Figures in USD million

• III. Consolidated Results*

62 62

• 132

32 18 18 119 19

• 113

13

2Q19 1Q20 2Q20 6M19 6M20

158 58 73 73 69 69 235 35 142 42

2Q19 1Q20 2Q20 2018 2019

• 276

76 102 02 155 55

• 333

33 257 57

2Q19 1Q20 2Q20 6M19 6M20

3.71 713 4.59 590 4.30 300

2Q19 1Q20 2Q20

521 21 1.26 260 1.11 113

2Q19 1Q20 2Q20

3.19 192 3.33 330 3.18 187

2Q19 1Q20 2Q20

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29

Sales EBITDA Volumes Sales EBITDA Volumes Sales EBITDA Volumes

* Figures in USD million

Pulp Softys Biopackaging

• III. Consolidated Results*

71 711 57 579 54 547

2Q19 1Q20 2Q20

22 220 22 224 19 198

2Q19 1Q20 2Q20

51 512 54 545 49 495

2Q19 1Q20 2Q20

27 274 11 119 16 164

2Q19 1Q20 2Q20

17 17 25 25 27 27

2Q19 1Q20 2Q20

46 46 86 86 76 76

2Q19 1Q20 2Q20

2Q19 19 1Q20 20 2Q20 20

• Pulpwood

78 72 59

• Sawing Logs

392 375 372

• Sawn Wood

171 149 158

• Remanufactured Wood

50 48 50

• Plywood

94 121 116

• Others

216 131 106 To Total al (th

• th. m3)

1.00 001 1 896 96 861 61 BSKP 180 189 161 BEKP 710 724 678 To Total al Market Pu Pulp (Th

• Th. Ton
• ns)

891 91 913 13 839 839 P&W Guaiba (Th. Tons) 13 12 8 2Q19 19 1Q20 20 2Q20 20

• Boxboard

95 113 102

• Paper Sacks

22 18 17

• Other Papers

19 19 14

• Corrugated Paper

21 28 28

• Corrugated Boxes

37 46 35

• Molded Pulp Trays

7 5 6 To Total al (Th

• Th. Ton
• ns)

201 201 230 230 202 202 2Q19 19 1Q20 20 2Q20 20

• Chile

41 43 38

• Brazil

32 67 61

• Mexico

38 40 39

• Argentina

25 26 28

• Peru

24 26 25

• Uruguay

5 6 6

• Colombia

7 8 6

• Ecuador

3 2 2 To Total al Ti Tissue Pa Paper (Th

• Th. Ton
• ns)

174 174 217 217 205 205

• Diapers

909 996 1.104

• Feminine Care

337 364 354

• Others

308 412 430 To Total al Pe Personal Ca Care (M. Units

ts)

1.55 554 1.77 773 1.88 889

SLIDE 30

78% 22%

93% 93% 3% 3% 2% 2% 2% 2% 30

90% 10%

BRL USD CLP Others Variable rate Fixed rate Banks Bonds

5.1 Years

Average Term

4.0%

Average Rate

*Figures in USD million Source: CMPC, as of June 30, 2020

Financial Debt Debt by currency Debt by type Debt by interest rate Debt Maturity Profile

USD 4,300 M

Gross Debt

USD 1,113 M

Cash

USD 3,187 M

Net Debt

• III. Consolidated Results*

428 428 121 121 116 116 44 44 138 138 37 37 9 25 25 25 25 498 498 512 512 511 511 74 74 1, 1,570 193 193 2020 2021 2022 2023 2024 2025 2026/2032 2033/2042 Bonds Banks

SLIDE 31

Environmental impact Use of proceeds

Create Coexist Conserve

31 31

GREEN FINANCING Issuances

4

TOTAL ISSUANCES Million

USD730

ALLOCATED FUNDS Million

USD718 124,670 ha

Area planted

58,774 ha

Area designated for conservation in Chile

1,139 ha

Area restored in Chile

28.86

tons/year

PM emissions avoided Renewable energy generation

10.9 GWh/year

Energy savings

79 GWh/year 2,664,767

tCO2e/year

Emissions avoided COD Pollution avoided

20,453

tCO2e/year

Captured

7,414

tons/year

• IV. Green Financing

Source: CMPC

74% 74% 9% 9% 7% 7% 5% 5% 5% 5%

Sustainable Management of Land Use Pollution Prevention & Control Sustainable Water & Wastewater Management Energy Efficiency Other SUSTAINABILITY LINKED LOAN (SLL)

1

Waste recovered Green building area

5,491

tons/year

11,700 m2 8,898

tons/year

Water savings