EMP EMPRESAS RESAS CM CMPC PC FOURTH QUARTER 2013 RESULTS Marc - - PowerPoint PPT Presentation

EMP EMPRESAS RESAS CM CMPC PC

FOURTH QUARTER 2013 RESULTS

Marc rch h 6th

th, 2014

14

FORWARD-LOOKING STATEMENTS

This presentation may contain forward-looking statements. Such statements are subject to risks and uncertainties that could cause CMPC’s actual results to differ materially from those set forth in the forward-looking statements. These risks include: market, financial and operational risks. All of them are described in CMPC’s Financial Statements, Note 3 (“Gestión de Riesgos”). In compliance with the applicable rules, Empresas CMPC S.A. publishes its financial results on its web site (www.cmpc.cl) and sends to the Superintendencia de Valores y Seguros the Financial Statements of the Company and its corresponding notes, which are available for consultation and review on its website (www.svs.cl).

2013: SOLID ACHIEVEMENT AND PROGRESS

3

Solid Fin inancial Achie ieveme ements ts 5% growth in revenue 5% growth in EBITDA EBITDA margin stable at 19% COGS and other expense margins stable Net debt /EBITDA of 2.8x Gro rowth across ross busines esse ses Talagante Tissue Machine Altamira Tissue Machine New plywood line Restructured paper division Prog rogress ss wit ith Guaíba ba Pro roject ect Project on schedule, on budget Executed conservative financial plan New ECA financing Indust ustry recog

• gnitions
• ns

Confort brand award FSCTM for CMPC Maderas Más por Chile seal

In US$ Milllion

2012 2012 2013 2013 YoY

Revenues 4,759 4,974 5% COGS (3,163) (3,312) 5% Other Operational Expenses (682) (699) 2% EBITDA 914 964 5% EBITDA margin % 19% 19% 0% Operational Result 526 535 2% Non Operational Result (324) (339) 5% Net Income 202 196

• 3%

4Q FINANCIAL AND OPERATIONAL HIGHLIGHTS

4

Revenue ue growth wth: a 2% YoY increase driven mostly by an increase in volumes in the Forestry and Pulp divisions. EBITD TDA of US$254 million, down 2% when compared to 3Q13 and up 21% to 4Q12. Ne Net Inco ncome of US$37 million, 13% and 7% lower than 4Q12 and 3Q13, respectively. Operat ational

• nal Highlights

ts

• New distribution center opens in Brazil
• QoQ

increase in volumes in most businesses

• QoQ increase in sales in most businesses
• Sale of stake in Bicecorp complete.

In US$ Milllion

4Q12 3Q13 4Q13 QoQ YoY

Revenues 1,213 1,231 1,259 2% 4% COGS (817) (795) (826) 4% 1% Other Operational Expenses (187) (177) (179) 1%

• 4%

EBITDA 209 209 258 258 254 254

• 2%

21% EBITDA margin % 17% 21% 20%

• 1%

3% Operational Result 103 148 142

• 4%

38% Non Operational Result (62) (104) (104) 0% 67% Net Income 40 40 43 43 37 37

• 13%
• 7%

Volumes 4Q12 3Q13 4Q13 QoQ YoY

Forestry + Solid Wood Prod. (1) 862 1,001 1,035 3% 20% Market Pulp(2) 542 538 576 7% 6% Papers(2) 339 330 177

• 46%
• 48%

Tissue Papers(2) 142 147 145

• 1%

2% (1) Th. m

3

(2) Th. tons

187 177 179 4Q12 3Q13 4Q13

Other er Op. Exp. (US$ Million)

817 795 826 4Q12 3Q13 4Q13

COGS S (US$ Million)

COSTS AND OTHER OPERATIONAL EXPENSES ANALYSIS

5 +4%

+1%

COGS increased 4% and 1% when compared to 3Q13 and 4Q12, respectively.

• Increase in revenues
• Higher seasonal costs in Forestry division

COGS in 4Q13 were 66% of total revenues, compared with 65% in 3Q13 and 67% in 4Q12.

+1%

• 4%

Other Operational Expenses increased 1% and decreased 4% in 4Q13 when compared to 3Q13 and 4Q12, respectively.

• Increase in revenues
• Higher seasonal costs in the Tissue division
• Lower distribution costs YoY

Other operating expenses in 4Q13 were 14% of total revenues, compared to 14% in 3Q13 and 15% in 4Q12.

FORESTRY

6 Revenues enues: ∆+4% QoQ / ∆+17% YoY Volumes mes: ∆+3% QoQ:

• ∆+15% QoQ of sawnwood: seasonality 4Q / Additional shipment to Middle East
• ∆+12% QoQ of pulp wood: higher wood chip sales
• ∆+5% QoQ of plywood: higher exports LatAm
• ∆-7% QoQ of sawing logs: lower availability due to plywood expansion
• ∆-8% QoQ of remanufactured wood: adjustment in demand from US

Prices ces: ∆+2% QoQ  higher pulp wood prices due to higher sales of wood chips EBITDA DA: ∆-22% QoQ

• Higher seasonal costs
• Startup of Plywood line – higher one time costs.

∆ Stable YoY

* Figures in US$ million

Volumes (Th. m

4Q12 3Q13 4Q13 Pulpwood 167 224 249 Sawing Logs 285 386 359 Sawn wood 200 199 230 Remanufactured wood 41 49 45 Plywood 55 52 54 Others 115 92 98 Total 862 1,001 1,035

123 138 144 4Q12 3Q13 4Q13

Sales*

32 42 32 4Q12 3Q13 4Q13

EBITDA*

PULP

7 Revenues enues: ∆+6% QoQ / ∆+9% YoY Volumes mes: ∆+7% QoQ

• BSKP stable QoQ
• BEKP ∆+10% QoQ  Higher exports to LatAm, USA and Europe.

Prices ces (including a small tonnage of P&W papers and energy sold to the SIC grid): ∆+1% QoQ Average effective net export price was CIF 713 US$/ton for softwood and CIF 633 US$/ton for hardwood. EBITDA DA: ∆+3% QoQ

• Higher sales
• Lower direct costs

∆+43% YoY

* Figures in US$ million

Volumes (th. Tons) 4Q12 3Q13 4Q13 BSKP 165 171 171 BEKP 365 356 392 Other 12 12 13 Total Market Pulp 542 538 576 94 130 134 4Q12 3Q13 4Q13

EBITDA*

362 374 396 4Q12 3Q13 4Q13

Sales*

PAPERS

8 Revenues enues: ∆+2% QoQ / ∆-9% YoY Volumes mes: Stable QoQ:

• ∆+2% QoQ of boxboard: higher production
• ∆-33% QoQ of newsprint: closure of operations
• ∆-2% QoQ of paper bags: lower exports in Argentinean operations
• ∆-3% QoQ of corrugated paper
• ∆+17% QoQ of corrugated boxes: start of the fruit season in Chile
• ∆-25% QoQ of molded pulp trays: lower apple sales

Price ces: ∆+5% QoQ, mainly due to higher paper bag prices. EBITDA DA: ∆+24% QoQ

• Higher sales
• Lower electricity costs

∆-10% YoY

* Figures in US$ million

Volumes (th. Tons) 4Q12 3Q13 4Q13 Boxboard 92 98 100 Newsprint 28 15 10 Paper Bags 19 22 22 Other Papers 37 38 37 CMPC Packaging 93 72 76 Corrugated Paper 40 31 30 Corrugated Boxes 51 36 42 Molded Pulp Trays 3 4 3 Total 270 245 244 280 252 256 4Q12 3Q13 4Q13

Sales*

50 36 45 4Q12 3Q13 4Q13

EBITDA *

TISSUE

9 Revenues enues: ∆-1% QoQ / ∆+4% YoY Volumes mes: Tissue Paper ∆-1% QoQ Sanitary Products ∆+1%: market growth and higher market share for diaper and feminine care products in most countries in which we operate. Prices ces (meas asured in in US US$) Stable QoQ for tissue paper and ∆-3% QoQ for sanitary products, both affected by the US Dollar appreciation EBITDA DA: ∆-17% QoQ

• Lower sales
• Lower direct costs
• Higher seasonal costs

∆+37% YoY

* Figures in US$ million

24% 22% 19% 14% 12% 4% 3% 2%

Sales Volumes by Country ry

Chile Brazil Argentina Mexico Peru Uruguay Colombia Ecuador

144 144

• th. Tons

35 58 48 4Q12 3Q13 4Q13

EBITDA*

446 467 464 4Q12 3Q13 4Q13

Sales*

DEBT ANALYSIS

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Cash of US$1,023 million in 4Q13, up 3% and 38% from 3Q13 and 4Q12, respectively. Sale of 7.7% participation in Bicecorp S.A.  US$106 million Financial Ratios Net Debt/EBITDA ratio of 2.8x, down from 3.0x in 3Q13 and 3.3x in 4Q12 Financial Debt/Net Tangible Worth ratio of 0.46x, from 0.46x in 3Q13 and 0.48x in 4Q12 Interest Coverage ratio of 5.7x, from 5.5x in 3Q13 and 4Q12

87% 10% 3%

Debt by Is Issuer

Inversiones CMPC Tissue Other 80% 11% 9%

Debt by Curre rrency cy

US$ CLP Other 91% 9%

Debt by Intere rest Rate

Fixed Rate Floating Rate 23% 77%

Debt by Type

Banks Bonds

2.5% 2.9%

• 0.2%
• 0.5%
• 20.0%

7.8%

• 800
• 400

400 800 1200 1600 Northern Softwood Southern Softwood Radiata Softwood Northern Hardwood Southern Hardwood Eucalyptus

MARKET PULP COMMENT

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Global demand for pulp rose 3.2% in 2013 from 2012 (+1.7 million tons). – Chinese demand grew 9.3% (+1.3 million tons) – Softwood demand grew 2.2%  in line with installed capacity – Hardwood demand grew 5.4% (+1.5 million tons) Market pulp demand grew 2.6% in 4Q13 from 3Q13. Global pulp inventories little changed at end of 4Q.

• Softwood

inventories rise 1 day; Hardwood inventories fall 2 days

Source: PPPC

3.2% 4.8%

• 0.7%

1.8% 2.4% 9.3%

• 1.3%

World North America Western Europe Latin America Japan China Other Asia/Africa

32 34 34 34 33

4Q12 1Q13 2Q13 3Q13 4Q13

Pulp inventory days

Source: PPPC

Market Pulp demand (2012 vs. 2013)

2014: STRATEGIC FOCUS

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Focus on effici cienc ency and discipl discipline in 2014 Facilities inaugurated in 2013 to provide further her benefi fit in 2014. New paper structure with leane eaner cos cost base Guaíba pulp pulp project continues on budget and on schedule. Work to deliver further pro rofitab table gro rowth th

Q&A Q&A