Earnings Presentation 2Q19 Forward-Looking Statements This - - PowerPoint PPT Presentation

▶
earnings presentation 2q19 forward looking statements
SMART_READER_LITE
LIVE PREVIEW

Earnings Presentation 2Q19 Forward-Looking Statements This - - PowerPoint PPT Presentation

Nov 11, 2022 125 likes •248 views

Earnings Presentation 2Q19 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

slide-1
SLIDE 1

Earnings Presentation 2Q19

slide-2
SLIDE 2

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
slide-3
SLIDE 3

Large-scale Latin American producer of Pulp, Tissue, Wood, Paper & Packaging products, serving global and local markets

3

Opening Comments

Challenging pulp market environment affecting pulp prices Improved results in Softys business with room to continue improving Conservative capital structure and strong liquidity position

slide-4
SLIDE 4

4

2Q19 Highlights

Op Oper erational l & & Financial l High ghli lights

  • Pulp sales volumes of 891,000 tons, up 8%

QoQ and down 4% YoY.

  • Hardwood CIF 629 US$/ton
  • Softwood CIF 633 US$/ton
  • Packaging sales volumes of 201,000 tons; down

4% QoQ and 3% YoY.

  • Tissue sales volumes of 174,000 tons; stable

QoQ and a 3% increase, YoY.

  • Personal care product sales volumes reached

1,554 mn. units, increasing 3% QoQ and 16% YoY.

  • EBITDA of US$325 million, down 3% QoQ and

36% YoY.

  • Free cash flow reached negative US$276

million, compared to negative US$56 million in 1Q19 and positive US$99 million in 2Q18.

  • Net debt to EBITDA of 2.0x, up from 1.7x of

1Q19 and down from 2.2x of 2Q18.

  • Net Income of USD62 million; a 8% QoQ

increase and 35% YoY decrease.

In USD Milllion 2Q18 1Q19 2Q19 QoQ YoY Revenues 1,618 1,449 1,442

  • 1%
  • 11%

COGS (915) (919) (928) 1% 1% Other Operational Expenses (196) (195) (189)

  • 3%
  • 4%

EBITDA 507 507 335 335 325 325

  • 3%
  • 36%

EBITDA margin % 31.3% 23.1% 22.5% -60 bps

  • 880 bps

Operational Result 333 164 139

  • 15%
  • 58%

Non Operational Result (238) (107) (78)

  • 27%
  • 67%

Net Income 95 95 57 57 62 62 8% 8%

  • 35%

3rd

rd Party Volumes

2Q18 1Q19 2Q19 QoQ YoY Forestry + Solid Wood Prod. (1) 989 819 1,001 22% 1% Market Pulp(2) 927 823 891 8%

  • 4%

Packaging(2) 208 210 201

  • 4%
  • 3%

Tissue Papers(2) 169 173 174 0% 3% Personal Care Products(3) 1,342 1,506 1,554 3% 16%

(1) Th. m3 (2) Th. Tons (3) M. units

slide-5
SLIDE 5

196 195 189

2Q18 1Q19 2Q19

Other er Op. . Exp (USD D Million)

915 919 928

2Q18 1Q19 2Q19

COGS (USD D Million)

+1%

  • 4%

5

+1,4%

  • 3%

COGS and Other Operating Expenses

COG OGS Up 1% QoQ:

  • (+) Higher sales volumes.
  • (-) Lower operating costs in Pulp and

Packaging Up 1% YoY:

  • (+) Higher direct costs in Softys
  • (-) Lower sales volumes in Pulp and

Packaging Ot Other er Op Oper erational l Expe Expenses Down 3% QoQ:

  • (-) Lower administrative expenses in

Softys Down 4% YoY:

  • (-) Lower distribution costs in Pulp
slide-6
SLIDE 6

444 283 274 2Q18 1Q19 2Q19

EBITDA*

749 589 578 150 129 132

2Q18 1Q19 2Q19

Sales*

Pulp Forestry

899 718 710

* Figures in US$ million
  • Rev

evenu nues: : -1% QoQ, -21% YoY

  • Fore
  • restr

try Sale les Vol

  • lumes: +22% QoQ, +1% YoY
  • Fore
  • restr

try Pr Prices: -16% QoQ, +13% YoY

  • Pulp

Pulp Pro Produ duction: +23% QoQ, +3% YoY

  • There were no scheduled maintenance downtime at our mills

in 2Q19.

  • Pulp

Pulp Sale les Vol

  • lumes:
  • QoQ (+8%)
  • +14% BSKP: Higher exports to Asia and Europe.
  • +7% BEKP: Higher exports to Europe, China and Latin

America.

  • YoY (-4%)
  • +6 BSKP: Higher sales in China.
  • 6% BEKP: Lower sales in Europe, Asia and the US.
  • Pulp

Pulp Pri Prices: BSKP US$633/ton, BEKP US$629/ton

  • EB

EBITDA:

  • - QoQ (-3%)
  • Lower pulp and forestry prices
  • Higher pulp and forestry products’ sales volumes
  • Lower forestry protection and maintenance costs due to lack
  • f maintenance downtimes at 2Q19.
  • - YoY (-38%)
  • Lower pulp and forestry products’ prices
  • Lower hardwood volumes.
  • 1%

6

  • 3%

Pulp Business

  • 21%
  • 38%

Third Party Sales Volumes

2Q18 1Q19 2Q19 QoQ YoY

  • Pulpwood

16 33 78 134% 387%

  • Sawing Logs

457 341 392 15%

  • 14%
  • Sawn Wood

202 170 171 1%

  • 15%
  • Remanufactured Wood

44 46 50 9% 14%

  • Plywood

123 105 94

  • 10%
  • 23%
  • Others

148 123 216 75% 46% Total ( t h. m3) 989 989 819 819 1.001 22% 22% 1% 1% BSKP 170 158 180 14% 6% BEKP 757 665 710 7%

  • 6%

Total Market Pulp ( Th. Tons) 927 927 823 823 891 891 8% 8%

  • 4%

P&W Guaiba (Th. Tons) 10 11 13 22% 33%

slide-7
SLIDE 7

49 32 46 2Q18 1Q19 2Q19

EBITDA*

486 495 512 2Q18 1Q19 2Q19

Sales*

+3%

  • Rev

evenu nues: +3% QoQ, +5% YoY

  • Vol
  • lumes:
  • - Tissue Paper
  • Stable QoQ, higher volumes in Chile, Argentina and

Colombia, offset by lower volumes in Mexico and Ecuador

  • +3% YoY, higher sales volumes in Mexico.
  • - Personal Care Products:
  • +3% QoQ, supported by higher volumes of diapers in

Argentina , Brazil, Colombia, Chile and Peru.

  • +16% YoY, driven by higher sales in all the categories in

most countries.

  • Pri

Prices (in USD):

  • +3% QoQ for Tissue Paper
  • Stable QoQ for Personal Care Products
  • EB

EBITDA:

  • - QoQ (+44%)
  • Higher sales volumes of personal care products and higher

sales prices in both categories.

  • Lower operating costs and expenses.
  • - YoY (-6%)
  • Higher costs due increased recycled paper prices
  • Higher sales volumes of tissue paper and personal care

products.

+44%

* Figures in US$ million

Third Party Sales Volumes

7

Softys Business

+5%

  • 6%

Third Party Sales Volumes

2Q18 1Q19 2Q19 QoQ YoY

  • Chile

40 39 41 4% 2%

  • Brazil

33 32 32 0%

  • 4%
  • Mexico

31 39 38

  • 4%

20%

  • Argentina

26 23 25 5%

  • 4%
  • Peru

23 24 24

  • 1%

2%

  • Uruguay

5 5 5

  • 1%
  • 1%
  • Colombia

7 7 7 7% 6%

  • Ecuador

4 4 3

  • 20%
  • 23%

Total Tissue Paper ( Th. Tons) 169 169 173 173 174 174 0% 0% 3% 3%

  • Diapers

798 866 909 5% 14%

  • Feminine Care

313 346 337

  • 2%

8%

  • Others

231 294 308 4% 33% Total Personal Care ( M . Unit s) 1.342 1.506 1.554 3% 3% 16% 16%

slide-8
SLIDE 8

24 29 17 2Q18 1Q19 2Q19

EBITDA *

233 236 220 2Q18 1Q19 2Q19

Sales*

  • Rev

evenu nues: -7% QoQ, -6% YoY

  • Vol
  • lumes:
  • - QoQ (-4% )
  • Lower volumes of corrugated boxes and corrugated paper
  • - YoY (-3% )
  • Lower volumes of corrugated paper, molded pulp trays

and paper bags.

  • Pri

Prices: -3% QoQ, -3% YoY

  • EB

EBITDA :

  • - QoQ (-43% )
  • Lower revenues from corrugated boxes, corrugated paper

and boxboard

  • Lower average prices
  • - YoY (-29% )
  • Lower revenues from corrugated paper and boxboard

sales

  • Higher administrative expenses
  • 6%
* Figures in US$ million
  • 29%
  • 43%

8

Third Party Sales Volumes

  • 7%

Packaging Business

Third Party Sales Volumes

2Q18 1Q19 2Q19 QoQ YoY

  • Boxboard

90 93 95 2% 5%

  • Paper Bags

23 21 22 5%

  • 2%
  • Other Papers

22 19 19 3%

  • 12%
  • Corrugated Paper

29 23 21

  • 8%
  • 26%
  • Corrugated Boxes

37 48 37

  • 23%

0%

  • Molded Pulp Trays

8 6 7 20%

  • 8%

Total ( Th. Tons) 208 208 210 210 201 201

  • 4%
  • 3%
slide-9
SLIDE 9
  • Free Cash Flo

low of negative US$276 million, from negative US$56 million in 1Q19 and positive US$99 million in 2Q18.

  • CAPEX of US$158 million during 2Q19, mainly related to forest

maintenance and the Zarate mill.

  • Cash position of US$521 million at the end of 2Q19, down 39%

QoQ and 19% YoY

  • Net debt

bt of US$3,192 million at the end of 2Q19, up 9% QoQ and down 1% YoY.

  • Net Debt/

t/EBI BITDA ratio in 2Q19 was 2.0x, up from 1.7x in 1Q19 and down from 2,2x from 2Q18.

9

Financial Execution & Cash Generation

USD Million 2Q18 1Q19 2Q19 QoQ YoY

(i)

Current Interest-Bearing Liabilities 329 424 377

  • 11%

14%

(ii) Non-Current Interest-Bearing Liabilities

3.573 3.373 3.364 0%

  • 6%

(iii) Other Obligations

(31) (30) (29)

  • 1%
  • 5%

(iv) Net Hedging Current Liabilities related to Debt Instruments

(2) 7 7 1% N/A

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

(6) 9 (6) N/A

  • 3%

Total Debt ( (i) + (ii) + (iii) + (iv) + (v) ) 3.863 3.783 3.713

  • 2%
  • 4%

Cash* 639 858 521

  • 39%
  • 19%

Net Debt 3.223 2.925 3.192 9% 9%

  • 1%

2,2x 1,8x 1,6x 1,7x 2,0x 1,0x 1,5x 2,0x 2,5x 3,0x 3,5x 4,0x 2Q18 3Q18 4Q18 1Q19 2Q19

Net Debt / EBITDA

Internal Policy
slide-10
SLIDE 10

10

Large-scale Latin American producer of Pulp, Tissue, Wood & Paper products, serving global and local markets Fully committed to the execution of the strategy Operational excellence programs to continue to improve productivity Growth in all business divisions Solid capital structure to take advantage of

  • pportunities

2019 Strategic Outlook

slide-11
SLIDE 11

Investor Relations Contacts

Colomba Henríquez colomba.henriquez@cmpc.cl +56 2 2441 2791 Petya Miteva petya.miteva@cmpc.cl +56 2 24412713 Agustina Mussolini agustina.mussolini@cmpc.cl +56 2 2441 2616

Q&A

1 1