Earnings Presentation 3Q19 Forward-Looking Statements This - - PowerPoint PPT Presentation

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Earnings Presentation 3Q19 Forward-Looking Statements This - - PowerPoint PPT Presentation

Dec 11, 2022 218 likes •343 views

Earnings Presentation 3Q19 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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SLIDE 1

Earnings Presentation 3Q19

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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.

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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

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SLIDE 4

4

3Q19 Highlights

Op Oper erational l & & Financial l High ghli lights

  • Pulp sales volumes of 988,000 tons, up 11%

QoQ and 7% YoY.

  • Hardwood CIF 522 USD/ton
  • Softwood CIF 554 USD/ton
  • Biopackaging sales volumes of 209,000 tons,

4% higher QoQ and 13% lower YoY.

  • Tissue sales volumes of 181,000 tons, up 4%

QoQ and a 3% YoY.

  • Personal care product sales volumes reached

1,612 million units, increasing 4% QoQ and 13% YoY.

  • EBITDA of USD286 million, 12% lower QoQ

and 44% YoY.

  • Free cash flow reached USD261 million,

compared to negative USD276 million in 2Q19 and positive USD312 million in 3Q18.

  • Net debt to EBITDA ratio of 2.2x, compared to

2.0x in 2Q19 and 1.8x in 3Q18.

  • Net loss of USD16 million, compared to Net

Income of USD62 million in 2Q19 and USD151 million in 3Q18.

In USD Milllion 3Q18 2Q19 3Q19 QoQ YoY Revenues 1,623 1,442 1,407

  • 2%
  • 13%

COGS (923) (928) (921)

  • 1%

0% Other Operational Expenses (193) (189) (200) 6% 4% EBITDA 508 508 325 325 286 286

  • 12%
  • 44%

EBITDA margin % 31.3% 22.5% 20.3% -217 bps -1093 bps Operational Result 336 139 96

  • 31%
  • 71%

Non Operational Result (185) (78) (112) 44%

  • 39%

Net Income 151 151 62 62 (16) n/a n/a 3rd

rd Party Volumes

3Q18 2Q19 3Q19 QoQ YoY Forestry + Solid Wood Prod. (1) 748 1,001 951

  • 5%

27% Market Pulp(2) 925 891 988 11% 7% Packaging(2) 220 201 209 4%

  • 5%

Tissue Papers(2) 176 174 181 4% 3% Personal Care Products(3) 1,423 1,554 1,612 4% 13%

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

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SLIDE 5

923 928 921 3Q18 2Q19 3Q19

COG COGS (USD Mill illion)

  • 1%

+4%

5

+6%

COGS and Other Operating Expenses

COG OGS Down 1% QoQ:

  • (-) Higher sales volumes of Pulp and

Softys

  • (+) Lower operational costs of Softys

Flat YoY:

  • (-) Higher sales volumes of Pulp and

Tissue

  • (+) Lower direct costs in e business

division due to local currencies depreciation Ot Other er Op Oper erational l Expe Expenses Up 6% QoQ:

  • (-) Higher administrative expenses and

distribution costs in Pulp and Softys Up 4% YoY:

  • (-) Higher administrative expenses in Pulp

and Softys

  • (+) Lower distribution costs in Softys

193 189 200 3Q18 2Q19 3Q19

Oth Other Op

  • Op. Ex

Exp (USD SD Mil illi lion)

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SLIDE 6

751 578 541 135 132 123

3Q18 2Q19 3Q19

Sale les*

Pulp Forestry

886 710 664 470 274 223 3Q18 2Q19 3Q19

EBI EBITDA*

* Figures in USD million
  • Rev

evenu nues: : -7% QoQ, -25% YoY

  • Fore
  • restr

try Sale les Vol

  • lumes: -5% QoQ, +27% YoY
  • Fore
  • restr

try Pr Prices: -2% QoQ, -18% YoY

  • Pulp

Pulp Pr Produ duction: -2% QoQ, -1% YoY

  • Lower production of the Guaíba I mill
  • Pulp

Pulp Sale les Vol

  • lumes
  • QoQ (+11%)
  • +2% BSKP: Higher exports to Asia (ex. China) and Latin

America.

  • +13% BEKP: Higher exports to Asia, USA and Europe.
  • YoY (+7%)
  • +12% BSKP: Higher sales in Asia.
  • +6% BEKP: Higher sales in Asia, Europe, Latin America and

USA.

  • Pulp

Pulp Pri Prices: BSKP USD554/ton, BEKP USD522/ton

  • EB

EBITDA:

  • - QoQ (-19%)
  • Lower hardwood and softwood prices
  • Lower forestry products’ sales volumes
  • - YoY (-52%)
  • Lower hardwood and softwood prices
  • Lower forestry prices
  • 7%

6

  • 19%

Pulp Business

  • 25%
  • 53%

BSKP 164 180 184 2% 12% BEKP 761 710 804 13% 6% Total Market Pulp ( Th. Tons) 925 925 891 891 988 988 11% 11% 7% 7% P&W Guaiba (Th. Tons) 10 13 12

  • 5%

21%

Third Party Sales Volumes

3Q18 2Q19 3Q19 QoQ YoY

  • Pulpwood

21 78 111 44% 440%

  • Sawing Logs

363 392 436 11% 20%

  • Sawn Wood

178 171 137

  • 20%
  • 23%
  • Remanufactured Wood

43 50 46

  • 7%

6%

  • Plywood

112 94 104 10%

  • 7%
  • Others

31 216 116

  • 46%

274% Total ( t h. m3) 748 748 1,001 951 951

  • 5%

27% 27%

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SLIDE 7

+3%

  • Rev

evenu nues: +3% QoQ, +6% YoY

  • Vol
  • lumes:
  • - Tissue Paper:
  • +4% QoQ, higher volumes in Brazil, Perú and Argentina.

+3% YoY, higher sales volumes in Mexico, Argentina and Perú, offset by lower volumes in Ecuador and Brazil.

  • - Personal Care Products:
  • +4% QoQ, supported by higher volumes of diapers in

most countries were we operate, excluding Ecuador.

  • +13% YoY, driven by higher sales in personal care

products, with increases in every category.

  • Pri

Prices (in USD):

  • 2% QoQ for Tissue Paper
  • +4% QoQ for Personal Care Products
  • EB

EBITDA:

  • - QoQ (+32%)
  • - YoY (+106%)
  • Higher sales volumes of tissue paper and personal care

products.

  • Lower operating costs and expenses, due to lower pulp

prices.

  • Offset by depreciation of local currencies and higher

administration expenses.

+30%

* Figures in USD million

Third Party Sales Volumes

7

Softys Business

+6% +107%

Third Party Sales Volumes

3Q18 2Q19 3Q19 QoQ YoY

  • Chile

40.5 40.9 40.9 0% 1%

  • Brazil

34.8 31.7 34.0 7%

  • 2%
  • Mexico

34.7 37.6 38.0 1% 10%

  • Argentina

24.0 24.7 26.0 5% 8%

  • Peru

25.0 23.7 25.7 9% 3%

  • Uruguay

5.5 5.0 5.3 7%

  • 2%
  • Colombia

7.0 7.1 7.3 2% 4%

  • Ecuador

4.1 3.3 3.4 4%

  • 18%

Total Tissue Paper ( Th. Tons) 176 176 174 174 181 181 4% 4% 3% 3%

  • Diapers

839 909 975 7% 16%

  • Feminine Care

318 337 335

  • 1%

6%

  • Others

266 308 302

  • 2%

13% Total Personal Care ( M . Unit s) 1,423 1,554 1,612 4% 4% 13% 13%

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SLIDE 8

23 17 11 3Q18 2Q19 3Q19

EBI EBITDA *

237 220 215 3Q18 2Q19 3Q19

Sale les*

  • Rev

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

  • Vol
  • lumes:
  • - QoQ (+4% )
  • Higher volumes sales of boxboard.
  • Lower volumes of the corrugated segment (molded pulp

trays, corrugated boxes, corrugated paper) as well as lower volumes of paper bags.

  • - YoY (-5% )
  • Lower volumes of the corrugated segment, paper bags and

boxboard.

  • Pri

Prices: -6% QoQ, -5% YoY

  • EB

EBITDA :

  • - QoQ (-34% )
  • Lower revenues from the corrugated segment (corrugated

paper, corrugated boxes and molded pulp trays).

  • Lower average prices.
  • Higher operational costs in corrugated paper related to the

maintenance downtime.

  • - YoY (-52% )
  • Lower revenues

from corrugated paper and boxboard segment.

  • Lower operational costs due to lower costs in fiber.
  • 9%
* Figures in USD million
  • 29%
  • 43%

8

Third Party Sales Volumes

  • 2%

Biopackaging Business

Third Party Sales Volumes

3Q18 2Q19 3Q19 QoQ YoY

  • Boxboard

109 95 107 14%

  • 2%
  • Paper Bags

24 22 22

  • 3%
  • 8%
  • Other Papers

24 19 27 41% 14%

  • Corrugated Paper

27 21 18

  • 13%
  • 32%
  • Corrugated Boxes

32 37 30

  • 18%
  • 4%
  • Molded Pulp Trays

5 7 4

  • 46%
  • 19%

Total ( Th. Tons) 220 220 201 201 209 209 4% 4%

  • 5%
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SLIDE 9
  • Free Cash Flo

low of USD261 million, from negative USD276 million in 2Q19 and positive USD312 million in 3Q18.

  • CAPEX of USD99 million during 3Q19, decreasing from USD158

million QoQ and stable YoY.

  • Cash position of USD869 million at the end of 3Q19, up 67% QoQ

and down 5% YoY.

  • Net debt of USD2,969 million at the end of 3Q19, down 7% QoQ

and up 1% YoY.

  • Net Debt/

t/EBI BITDA ratio of 2.2x during the quarter, compared to 2.0x in 2Q19 and 1.8x in 3Q18.

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Financial Execution & Cash Generation

USD Million 3Q18 2Q19 3Q19 QoQ YoY

(i)

Current Interest-Bearing Liabilities 306 377 452 20% 48%

(ii) Non-Current Interest-Bearing Liabilities

3,587 3,364 3,393 1%

  • 5%

(iii) Other Obligations

(31) (29) (29)

  • 1%
  • 5%

(iv) Net Hedging Current Liabilities related to Debt Instruments

8 7 11 53% 34%

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

(7) (6) 11 N/A N/A Total Debt ( (i) + (ii) + (iii) + (iv) + (v) ) 3,863 3,713 3,838 3% 3%

  • 1%

Cash* 919 521 869 67%

  • 5%

Net Debt 2,944 3,192 2,969

  • 7%

1% 1%

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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

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SLIDE 11

Investor Relations Contacts

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

Q&A

1 1

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