Earnings Presentation 1Q20 Forward-Looking Statements This - - PowerPoint PPT Presentation

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Earnings Presentation 1Q20 Forward-Looking Statements This - - PowerPoint PPT Presentation

May 25, 2023 17 likes •130 views

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

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Earnings Presentation 1Q20

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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.

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SLIDE 3

A 100 years company, leading sustainable producer of pulp, tissue, wood and packaging products, based in Latin America with global commercial presence.

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Opening Comments

Improved results in Softys and Biopackaging, result of diversification strategy Challenging pulp market environment continues affecting pulp prices Efficiency and Productivity under constant progress, reflected in the businesses Conservative capital structure and strong liquidity position to face a challenging scenario

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SLIDE 4

4

1Q20 Highlights

Op Oper erational l & & Financial l High ghli lights

  • Pulp sales volumes of 913,000 tons, 3% lower

QoQ and 11% higher YoY.

  • Hardwood CIF 464 USD/ton
  • Softwood CIF 557 USD/ton
  • Biopackaging sales volumes of 230,000 tons,

4% higher QoQ and 9% YoY.

  • Tissue sales volumes of 216,000 tons, up 9%

QoQ and 25% YoY.

  • Personal care product sales volumes reached

1,773 million units, increasing 6% QoQ and 18% YoY.

  • EBITDA of USD222 million, 1% lower QoQ and

34% lower YoY.

  • Free cash flow reached USD102 million,

compared to a negative USD186 million in 4Q19 and negative USD56 million in 1Q19.

  • 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

  • f USD57 million in 1Q19.

In USD Milllion 1Q19 4Q19 1Q20 QoQ YoY Revenue 1.449 1.372 1.348

  • 2%
  • 7%

COGS (919) (942) (936)

  • 1%

2% Other Operational Expenses (195) (207) (190)

  • 8%
  • 2%

EBITDA 335 335 223 223 222 222

  • 1%
  • 34%

EBITDA margin % 23,1% 16,2% 16,4% 20 bps

  • 667 bps

Operational Result 164 35 30

  • 15%
  • 82%

Non Operational Result (107) (53) (162) 204% 51% Net Income 57 57 (18) (132) 626% 626% N/A 3rd

rd Party Volumes

1Q19 4Q19 1Q20 QoQ YoY Forestry + Solid Wood Prod. (1) 819 861 896 4% 9% Market Pulp(2) 823 940 913

  • 3%

11% Biopackaging(2) 210 222 230 4% 9% Tissue Papers(2) 173 198 216 9% 25% Personal Care Products(3) 1.506 1.665 1.773 6% 18%

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SLIDE 5

195 207 190

1Q19 4Q19 1Q20

Oth Other Op

  • Op. Ex

Exp (USD SD Mil illi lion)

919 942 936

1Q19 4Q19 1Q20

COG COGS (USD Mill illion)

  • 1%
  • 2%

5

  • 8%

COGS and Other Operating Expenses

COG OGS Down 1% QoQ:

  • (+) Lower operational costs in Softys and

Biopackaging.

  • (-) Higher costs in Pulp related to forest fire

prevention efforts and lower operational performance. Up 2% YoY:

  • (-) Higher direct costs from an increase in sales

volumes in all business areas.

  • (+) Higher efficiencies, lower fiber costs and a

positive effect related to local currency depreciation. Ot Other er Op Oper erational l Expe Expenses Down 8% QoQ:

  • (+) Lower administrative expenses in every

business and lower marketing expenses in Softys

  • (-) Higher distribution costs in Pulp

Down 2% YoY:

  • (+) Lower administrative expenses in Pulp and

Softys and lower marketing expenses in Softys. (+) Positive effect due to a local currency depreciation, both QoQ and YoY

  • (-) Higher distribution costs in Softys

+2%

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SLIDE 6

589 475 460 129 119 119 1Q19 4Q19 1Q20

Sale les*

Forestry Pulp 579 718 594 283 148 119 1Q19 4Q19 1Q20

EBI EBITDA*

* Figures in USD million
  • Rev

Revenu nues: : -3% QoQ, -19% YoY

  • Fore
  • restr

try Sale les Vol

  • lumes: +4% QoQ, +9% YoY
  • Fore
  • restr

try Pr Prices: -4% QoQ, -16% YoY

  • Pulp

Pulp Produ duction: -3% QoQ, +7% YoY

  • QoQ: Lower production of Santa Fe II and Guaíba II.
  • YoY: Higher production due to lower maintenances.
  • Pulp

Pulp Sal ales Vol

  • lumes
  • QoQ (-3%)
  • +11% BSKP: Higher sales to Asia (excl. China) and Latin America.
  • 6% BEKP: Lower exports to Asia (excl. China) and Europe.
  • YoY (+11%)
  • +20% BSKP: Higher exports to Asia and Europe.
  • +9% BEKP: Higher sales in Asia (excl. China), the US, Europe and

Middle East.

  • Pulp

Pulp Prices: BSKP USD557/ton, BEKP USD464/ton

  • EB

EBITDA:

  • - QoQ (-19%)
  • Lower prices and sales volumes in hardwood.
  • Higher operating costs related to forest fire prevention efforts

and a lower operational performance.

  • - YoY (-58%)
  • Lower pulp sales due to hardwood (-33%) and softwood prices

(-21%)

  • Higher pulp sales volumes and lower costs related to scheduled

maintenances.

  • 3%

6

  • 19%

Pulp Business

  • 19%
  • 58%

Third Party Sales Volumes

1Q19 4Q19 1Q20 QoQ YoY

  • Pulpwood

33 77 72

  • 6%

117%

  • Sawing Logs

341 351 375 7% 10%

  • Sawn Wood

170 158 149

  • 6%
  • 12%
  • Remanufactured Wood

46 45 48 6% 4%

  • Plywood

105 115 121 5% 15%

  • Others

123 115 131 14% 7% Total ( t h. m3) 819 819 861 861 896 896 4% 4% 9% 9% BSKP 158 170 189 11% 20% BEKP 665 769 724

  • 6%

9% Total Market Pulp ( Th. Tons) 823 823 940 940 913 913

  • 3%

11% 11% P&W Guaiba (Th. Tons) 11 13 12

  • 6%

12%

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32 64 86 1Q19 4Q19 1Q20

EBI EBITDA*

495 558 545 1Q19 4Q19 1Q20

Sale les* s*

  • 2%
  • Rev

evenu nues: -2% QoQ, +10% YoY

  • Vol
  • lumes:
  • - Tissue Paper:
  • +9% QoQ, higher volumes in every market, especially

Brazil (+13%) mainly due to SEPAC consolidation and Chile (+9%).

  • +25% YoY, higher sales volumes in Brazil, Chile and

Argentina, driven by a higher demand due to COVID-19 and the SEPAC consolidation.

  • - Personal Care Products:
  • +6% QoQ, supported by higher volumes of wet wipes (in

Chile, Peru and Uruguay) and feminine care products (mainly in Argentina and Uruguay).

  • +18% YoY, driven by higher sales in every category with

increases of diapers in almost every market, wet wipes in Chile and Peru, and feminine care products in Chile, Argentina and Peru.

  • Pri

Prices (in USD):

  • 6% QoQ; -13% YoY for Tissue Paper
  • 11% QoQ, -2% YoY for Personal Care Products
  • EB

EBITDA:

  • - QoQ (+35%)
  • - YoY (+173%)
  • Higher sales volumes in tissue and personal care products,

and higher prices in local currencies, partially offset by their depreciation.

  • Lower operating costs due to lower prices in fiber, lower

SG&A, and also efficiencies and productivity initiatives.

+35%

* Figures in USD million

Third Party Sales Volumes

Softys Business

+10% +173%

Third Party Sales Volumes

1Q19 4Q19 1Q20 QoQ YoY

  • Chile

39 39 43 9% 9%

  • Brazil

32 59 66 13% 109%

  • Mexico

39 38 40 6% 1%

  • Argentina

23 24 26 7% 10%

  • Peru

24 25 26 5% 8%

  • Uruguay

5,0 5,3 5,9 12% 18%

  • Colombia

6,6 6,9 7,6 9% 14%

  • Ecuador

4,1 2,1 2,3 13%

  • 42%

Total Tissue Paper ( Th. Tons) 173 173 198 198 216 216 9% 9% 25% 25%

  • Diapers

866 1.004 996

  • 1%

15%

  • Feminine Care

346 322 364 13% 5%

  • Others

294 338 412 22% 40% Total Personal Care ( M . Unit s) 1.506 1.665 1.773 6% 6% 18% 18% 7

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SLIDE 8

29 13 25 1Q19 4Q19 1Q20

EBI EBITDA *

236 220 224 1Q19 4Q19 1Q20

Sale les*

  • Rev

evenu nues: +2% QoQ, -5% YoY

  • Vol
  • lumes:
  • - QoQ (+4% )
  • Higher volume sales of corrugated boxes, molded pulp trays

and corrugated paper.

  • Partially offset by lower volumes of paper bags.
  • - YoY (+9% )
  • Higher sales of boxboard and corrugated paper.
  • Lower volumes of paper bags and corrugated boxes.
  • Pri

Prices: -2% QoQ, -13% YoY

  • EB

EBITDA :

  • - QoQ (+102% )
  • Higher revenues associated to corrugated products.
  • Lower operational costs due to lower prices of fiber and an

increased productivity in the corrugated paper boxboard

  • mills. Slightly lower administrative expenses.
  • - YoY (-14% )
  • Lower sales from the corrugated segment and paper bags,

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.

  • 5%
* Figures in USD million
  • 14%

+102% 8 +2%

Biopackaging Business

Third Party Sales Volumes

1Q19 4Q19 1Q20 QoQ YoY

  • Boxboard

93 113 113 1% 22%

  • Paper Bags

21 20 18

  • 10%
  • 16%
  • Other Papers

19 26 19

  • 25%

3%

  • Corrugated Paper

23 26 28 6% 22%

  • Corrugated Boxes

48 35 46 33%

  • 5%
  • Molded Pulp Trays

6 3 5 102%

  • 8%

Total ( Th. Tons) 210 210 222 222 230 230 4% 4% 9% 9%

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  • Free Cash Flo

low of USD102 million, from negative USD186 million in 4Q19 and negative USD56 million in 1Q19.

  • CAPEX of USD73 million during 1Q20, decreasing from USD429

million QoQ and 77 million YoY.

  • Cash position of USD1,260 million at the end of 1Q20, up 105%

QoQ and 47% YoY.

  • Net debt of USD3,102 million during 1Q20, down 6% QoQ and up

6% YoY.

  • Net Debt/

t/EBI BITDA ratio of 3.2x during the quarter, compared to 2.8x in 4Q19 and 1.7x in 1Q19.

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Financial Execution & Cash Generation

USD Million 1Q19 4Q19 1Q20 QoQ YoY

(i)

Current Interest-Bearing Liabilities 424 507 807 59% 91%

(ii) Non-Current Interest-Bearing Liabilities

3.373 3.367 3.709 10% 10%

(iii) Other Obligations

(30) (29) (28)

  • 1%
  • 6%

(iv) Net Hedging Current Liabilities related to Debt Instruments

7 2 (7) N/A N/A

(v) Net Hedging Non-Current Liabilities related to Debt Instruments

9 51 (118) N/A N/A Total Debt ( (i) + (ii) + (iii) + (iv) + (v) ) 3.783 3.898 4.363 12% 12% 15% 15% Cash* 858 615 1.260 105% 47% Net Debt 2.925 3.283 3.102

  • 6%

6% 6%

1,7x 2,0x 2,2x 2,8x 3,2x 1,0x 1,5x 2,0x 2,5x 3,0x 3,5x 4,0x 1Q19 2Q19 3Q19 4Q19 1Q20

Net t Deb Debt / EBIT EBITDA

Internal Policy
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Fully committed to the execution of the strategy, while complying with internal financial targets Operational excellence programs to continue to improve productivity Strong capital structure to adapt to new market conditions Long-term, sustainable relationship with

  • ur stakeholders and the environment

2020 Strategic Outlook

A 100 years company, leading sustainable producer of pulp, tissue, wood and packaging products, based in Latin America with global commercial presence.

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Investor Relations Contacts

Colomba Henríquez colomba.henriquez@cmpc.cl +56 2 2441 2791 Petya Miteva petya.miteva@cmpc.cl +56 2 24412713

Q&A

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Blanca Lecaros blanca.lecaros@cmpc.cl +56 2 2441 2616