EMPRESAS CMPC PRESENT ESENTATION TION PREP EPARED ARED FOR ITAU - - PowerPoint PPT Presentation

LUIS S LLANOS NOS – CFO TRINI INIDAD AD VALDÉS DÉS – HEAD D IR

EMPRESAS CMPC

PRESENT ESENTATION TION PREP EPARED ARED FOR ITAU U 10TH

TH ANNUAL

L LATAM AM CEO CONFER FERENCE NCE – NY NY

AGENDA

I. I. Compan pany descri cripti ption

• n

II. Our value proposal

1. Leading diversified Latin American P&P player 2. Low cost producer with world class assets 3. Strong balance sheet and financial track record 4. Committed to Sustainable Development and Corporate Governance 5. Investment portfolio in high growth potential businesses

III. 2015 Challenges IV. Appendix

3

Matte Group 56% Local & Foreign Investors 33% Chilean Pension Funds 11%

P&P P main in compa

• mpanies by

by mark rket t capi pital taliz izati ation

CMPC AT A GLANCE

CMPC is a P&P company, established in 1920, that produces soli

lid d wood

• d

pro roducts ucts, pulp lp, paper, packagi kaging ng pro roducts ucts and tis issue sue in Latin in Ameri rica ca

Shareholders’ Structure* Market capitalization of US$7 bil

illi lion n

as of April 30th, 2015

~16,800

Employees worldwide

CMPC’s Figures

Sales: 4,831 EBITDA: 974 Net Income: 15 Net Debt: 3,494 Assets: 14,861

Figures for the LTM as of March 2015 (US$ million)

Controlled by the Matte

e Family ly, one

• f Chile’s leading economic groups

Operations in 8

8 count ntrie ries, selling to

more than 45 count

ntri ries es

*As of April 30th, 2015. Source: Bloomberg * As of March 31st, 2015. Source: CMPC

International rating

BBB+ BBB+ (Fitch) BBB BBB- (S&P) Baa3 (Moodys)

Local rating

AA AA (Fitch) AA AA (ICR)

22.7 17.9 8.3 7.8 7.0 6.9 5.9 5.6

IP IP SCA Stora ra Enso Fibria CMPC KCM Klabin Suza zano

AGENDA

I. Company description II. II. Our value lue pro ropos

• sal

al

1. 1. Leading ding dive versifi sified ed Latin n American rican P&P player er 2. 2. Low

• w cost pro

roducer cer with h wo world class s assets ts 3. 3. St Stro rong g balance ance sheet t and d fin financi ncial al track k record 4. 4. Committ mitted ed to Sustai taina nable ble Deve velopment pment and Corp rporat ate e Gove vernance nance 5. 5. Inve vestm stment ent portfolio in high gh gro rowth th pot

• tent

ntial al busines nesses ses

III. 2015 Challenges IV. Appendix

1. . LEA EADING DING DI DIVE VERSIFIED SIFIED LATIN TIN AME MERIC ICAN AN P&P PLAYER

6

A DIVERSIFIED BUSINESS PORTFOLIO PROVIDES CMPC A STABLE CASH FLOW

Source: CMPC. Figures in US$ million for the LTM as of March 2015 / Figures do not include sales between CMPC affiliates or subsidiaries

Main n Figures es % of third par arties es total al sales es % of cons nsolidat ated ed EBITDA DA Total al cap apac acity & Employee ees Forest estry Pulp Paper ers Tissu sue Sales: 931 Sales 3rd parties: 588 EBITDA: 145 EBITDA margin: 16% 659 Th. has. planted 12.9 M m3/y harvested 1.7 M m3/y solid wood 2,615 employees US$5.8 billion in assets Sales: 1,768 Sales 3rd parties: 1,413 EBITDA: 470 EBITDA margin: 27% 2.8 M tons/y 2,155 employees US$4.3 billion in assets Sales: 1,035 Sales 3rd parties: 980 EBITDA: 153 EBITDA margin: 15% 1.3 M tons/y 3,639 employees US$1.6 billion in assets Sales: 1,852 Sales 3rd parties: 1,849 EBITDA: 214 EBITDA margin: 12% 617 Th. tons/y 8,234 employees US$2.2 billion in assets

22% 22% 12% 29% 29% 20% 20% 39% 39% 15% 15% 16% 16% 48% 48%

7

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Sales Bre reak akdo down n Evolut ution n (Million n US$)

Domestic Sales in Chile Export Sales Domestic Sales Foreign Subsidiaries

Forestry Operations Pulp Operations Paper and Packaging Operations Tissue Operations

CMPC HAS EVOLVED FROM A LOCAL COMPANY TO A GLOBAL PLAYER

CMPC has expande nded d signi nifi ficant antly y through Latin n Amer erica a over the last two decades

Source: CMPC

11x asset t gro rowth th since 1990 (before CMPC’s international expansion process)

8

Plywood

CMPC HAS A PRODUCT AND GEOGRAPHIC DIVERSIFICATION OF SALES THAT PROVIDES FLEXIBILITY

Source: CMPC. Figures in US$ million for the LTM as of March 2015 / Figures do not include Holding and Intercompany Sales.

Operations in 8

8 count ntri ries es, selling in more

than 45 count

ntri ries es 10 10 la largest est custome

• mers

represent ~ 15% of consolidated sales Besides Chile, there is no

sin ingle e count ntry that

represents more

e than 15% 15% of consolidated sales

2. . LOW COS OST PROD ODUCER UCER WIT ITH H WOR ORLD D CLASS SS ASS SSETS

10

CMPC BENEFITS FROM ITS PRODUCTION COST EFFICIENCIES AND WORLD CLASS ASSETS

Energy gy investments

based in biomass

mass and cogenerati neration

(energy self-sufficiency in Chile by mid 2015) Access to

low

• w cost fib

fiber Researc arch h and Deve velopment pment

to enhance efficiency, productivity and customer satisfaction

St State e of a art

facilities strateg

egical cally y located ed

11

11 11 20 20 23 23 43 43 43 43

• E. Globulus

Iberian

• E. Globulus

Chile Acacia Mangium Eucalyptus Brazil

• E. Nitens Chile

2 4 5 11 11 19 19

Russia Scandinavia Canada USA Chile

Radiata ata Pin ine

Average softwood growth rate (m3ssc/ha/year)

Euca ucalyp yptu tus

Average hardwood growth rate (m3ssc/ha/year)

HIGH YIELD FORESTRY ASSETS THAT PROVIDE LOW COST FIBER RESOURCES

658,800

Plante ted d hecta tares

490,300 300

Chile

112,00 ,000

Brazi zil *

56,500 00

Argent ntina CMPC Forest Base is FSCTM Certified

Improveme ement t in in Forestr restry y Yie ields s **

** Evolution of the weighted increase of volume per hectare excepted for eucalyptus and pine plantations established in Chile in the respective year

CMPC has a high quality and sustainable forestry base with fast growth cycles which optimizes capital invested in land, reduces average distance to mills and increases gains due to genetic and sylvicultural practices

0% 0% 3% 3% 9% 9% 14% 14% 23% 23% 32% 32% 1975 1980 1990 2000 2010 2020P

Source: CMPC. *There is an agreement to acquire from Fibria aprox. 100 Th. hectares of which 39 Th. are planted. CMPC is waiting the approval of Brazilian authorities to consolidate this land ** m3ssc: solid m3 without bark

Ove ver r 1 mil illion ion hecta tare res s of la land

12

100 100 200 200 300 300 400 400 500 500 600 600 700 700 5,000 10,000 15,000 20,000 25,000 30,000

(US$/Ton c.i.f. N. Europe) (Thousan sand metric tonne nes) s)

100 100 200 200 300 300 400 400 500 500 600 600 700 700 5,000 10,000 15,000 20,000 25,000

(US$/Ton c.i.f. N. Europe)

(Thousand m metri ric t tonnes)

BSKP KP1 Supp pply Cur urve (US$/t /ton)

• n)

CMPC’S CASH COSTS ARE AMONG THE LOWEST OF THE PULP INDUSTRY GLOBALLY

Source: CMPC and Hawkins Wright as of April 2015 (1) BSKP: Bleached Softwood Kraft Pulp (2) BHKP: Bleached Hardwood Kraft Pulp

CMPC’s pulp facilities CMPC’s pulp facilities

BHKP KP2 Suppl pply y Curve e (US$/t /ton)

• n)

CMPC’s average distance from… to…

Source: CMPC

163 Km. 93 Km. m. 119 Km. m. 80 Km. 80 Km. m. 93 Km. m. 99 Km. m. 260 Km.

(by train) in)

(by y train) (by y train) (by y barge rges) s)

Laja ja Guaíb íba I Pacíf ífico ico Santa ta Fe Pla lanta tatio tions Ports ts

Effective price range of CMPC’s BSKP, last 24 months Effective price range of CMPC’s BHKP, last 24 months

BSKP KP – 340 th. tons BEKP KP– 455 th. tons BSKP KP– 500 th. tons BEKP KP– 1.500 th. tons

13

Plywood

Biomass 73% Electric Energy 8% Oil 6% Natural Gas 7% Coal 6%

CMPC IS FOCUSING ON ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES

500 1,000 1,500 2,000 2,500 3,000 3,500 2014 F 2015 F 2016 F Forestry Pulp Papers Tissue 2014 F 2015 F 2016 F Generation Contracts

Sourc rce e of En Energy gy Consum umpt ption

• n

in CMPC

2013 (89,9 ,975 Teraj ajoul

• ules)

Energy gy Balance ance in Chile e GWh

CMPC is constantly investing in energy generation based on biomass and cogeneration to further lower its cost base and its dependency from the electric market Curr rrent t Cogenerati eneration Proj roject ects Puente Alto Mill (3Q15): 50MW + 80 tons steam/hour Talagante Mill (3Q15): 21MW + 25 tons steam/hour Altamira Mill (3Q15): 21MW + 30 tons steam/hour

Source: CMPC

Consu sumpt mption

• n

Generati ration

• n

3. . ST STRONG ONG BA BALANCE ANCE SH SHEE EET AND ND FI FINANC NANCIAL IAL TRACK CK RECORD ORD

15

Plywood Interest rest Cov

• vera

erage e Ratio

• (Covenant:

: >3.25 .25x) Fin inancial Debt bt / Equity ty (Covenan enant: : <0.8x) Sale les s Evol volution tion (US$ mil illion

• n)

EBITD ITDA and EBITD ITDA Marg rgin Evol volutio tion (US$ mil illion)

• n)

KEY FINANCIAL FIGURES AS OF MARCH 31ST 2015

Source: CMPC Source: CMPC Source: CMPC Source: CMPC

4,786 4,759 4,974 4,900 4,831

2011 2012 2013 2014 LTM

1,066 914 964 985 974 22% 19% 19% 20% 20%

2011 2012 2013 2014 LTM

0.43x 0.48x 0.48x 0.56x 0.53x

2011 2012 2013 2014 1Q15

6.80x 5.45x 5.67x 5.31x 5.18x

2011 2012 2013 2014 1Q15

16

4.5 1.5 2.3 0.9 2.8 1.5 3.3 1.8 3.4 3.6

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Acquisition of Pacífico and Santa Fe I Santa Fe II Investment Period Guaíba I Acquisition Guaíba II Investment Period

DEMONSTRATED CAPACITY TO MANAGE LEVERAGE

Net et Debt t / EBITDA

Source: CMPC

17

CMPC’S DEBT PROFILE AS OF MARCH 31ST 2015

Last t fi financial transac actio tions: s: Capital increases for US$500 million (June 2013) and US$250 million (July 2014) US$340 million ECA financing 10 year (+2 year grace period) @ 3.5% UF 5,000,000 Chilean bond (May 2014) 25 year bullet @ UF + 3.7% UF 4,000,000 CMPC- B bond prepayment (Sept. 2014) US$500 million international bond (Sept. 2014): 10 year bullet @ UST10 + 225 bps Amor

• rtiza

tizatio tion sched edule (as of toda

• day)

y)

Source: CMPC

Debt bt Prof rofile Average term: 10.7 years Total Debt: US$4,240 million Cash: US$746 million Net Debt: US$3,494 million

Banks 7% Bonds 71% BNDES 14% ECA 8%

CLP 6% USD 84% BRL 6% Other 4%

Fixed Rate 97% Variable Rate 3%

Inversi

• nes

CMPC 72% Tissue 8% Pulp 20%

498 497 494 988 494 122 210 215 125 124 348 83 2015 2016 2017 2018 2019 2020/22 2023/30 2030/39

Bonds Banks

4. . COM OMMITTED MITTED TO O SU SUST STAINABLE NABLE DE DEVE VELOPMENT OPMENT AND D COR ORPORA PORATE TE GOVERNANC VERNANCE

19

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

Our objectives for the 2013 – 2015 period: Increase of our renewable energy generation, reducing the purchase of fossil fuels and electricity Increase the energy efficiency of pulp mills by 20% by 2020 Complement the FSC ™ Certification for the stewardship of renewable forest plantations in Chile and Brazil with the respective FSC ™ Chain-of-Custody for the products made by the Company Reduce CMPC’s water consumption and effluent volume by upgrading the older industrial processes

*For further information please review our CSD Report which is available at www.cmpc.cl

Throughout its history, CMPC has maintained a way of doing business and engaging with employees, customers and shareholders. With a 94-year tradition, the following five values summarize our vision of how we should work.

Strict compl pliance nce with the legal regulat ation

• n

Considera ratio tion n for neighb hbor

• rs' needs

Respect for r people Fairness when n competin ting Care of the env nviro ronme nment

20

CORPORATE GOVERNANCE IN CMPC

Board ard of Dir irec ectors

Elected every three years by shareholders Shareholders Meeting to account for the administration Scheduled meetings held once a month to evaluate and decide

• n the development of the Company

Name Years as Director

• r

Eliodoro Matte (Chairman) 39 Martín Costabal 10 Erwin Hahn (Independent) 4 Jorge Gabriel Larraín 35 Arturo Mackenna 4 Jorge Marín (Independent) 19 Bernardo Matte 30

Dir irec ectors s Commi mittee

Current members: Jorge Marín, Erwin Hahn and Arturo Mackenna Is responsible for examining the background information concerning related party transactions examining the reports prepared by the external and internal auditors examining officers’ compensation systems and plans, among others matters

Senior

• r Manageme

ement

Appointed by the Board of Directors The controlling group members do not serve as CMPC’s managers Top managers with over 24 years experience in CMPC

Other er Self lf Impose posed d Re Requi uiremen ments ts

Controllership Department, Internal Control Department, Corporate Governance structured downstream, Corporate Ethic Code, Antitrust Guide, Global Demand Line, Investor Relations Department, Auditing Committee, Risk Committee, among others

5. . IN INVE VESTMENT STMENT POR ORTF TFOLIO OLIO IN IN HI HIGH H GROWTH TH POTENTIAL ENTIAL BU BUSI SINESS ESSES ES

22

CMPC HAS A DIVERSE PROJECT PORTFOLIO WITH MORE THAN US$2.6 BILLION IN INVESTMENT FOR THE PERIOD 2014-2015

TISSUE/E /ENE NERGY Cogeneration plant – Talagante Mill 21MW + 25 tons steam/hour US$33 million 3Q15 (58% disbursed*) PULP Guaíba Expansion 1.3 million ton/year | US$ 2.1 billion | 2Q15 FORESTR TRY Land purchases for forestry uses and associations with 3rd parties. TISSUE Increase in conversion capacity of tissue paper and sanitary products PAPERS/E S/ENE NERGY Cogeneration plant – Puente Alto Mill 50MW + 80 tons steam/hour US$71 million 3Q15 (76% disbursed*) TISSUE

Tissue Machine + Cogeneration – Altamira Mill (Mexico) 50 th. tons /year 21MW + 30 tons steam/hour US$ 130 million 3Q15 (66% disbursed*)

RECU CURR RRENT NT INVES ESTME MENT NTS

*As of March 31st, 2015

23

TISSUE DIVISION: CMPC IS FAVOURABLY POSITIONED TO CAPTURE THE DEVELOPMENT AND GROWTH OF THESE MARKETS

Chile Argent ntina Urugua uay Pe Peru Mexico Colombi bia Brazi zil

75% 75%

7% 7%

43% 43% 80% 80%

11% 11%

6% 6%

56% 56%

CMPC Tissue Paper Market Share.

Source: CMPC as of December 31st 2014

Ecuad ador

• r

23% 23%

CMPC PC Tis issu sue Sale les s (US$ mil illion)

• n)

CMPC successfully

evolved from a local player into a leading

ding

LatAm tissue

ue player due

to its ability to enter

er new

markets with high

gh pot

• tent

ntial al based on a pioneer eering ng spirit

sustained by wo

world-cl clas ass s

innovations

CMPC PC has a strong

presence in all main categories of tis

issue, sue, sanitar itary and aw away fro rom m home e products

CMPC: 84 th. tons* CMPC: 71 th. tons CMPC: 166 th. tons* CMPC: 27 th. tons CMPC: 135 th. tons CMPC: 35 th. tons CMPC: 99 th. tons 296 296 430 430 682 682 1,106 1,503 2,015 1,850 2001 2006 2007 2009 2012 2013 2014

Entry to Ecuador - Colombia

Entryto Mexico Entryto Brazil

24

Per Capita ta Tis issu sue Consu sumpt mption

CMPC SEEKS TO TAP LATAM UNDERPENETRATED TISSUE MARKETS

High growt

rowth potential due to low per

capita consumption relative to developed economies. Latam average tissue consumption:

5.7 5.7 kg/person

Expected growth in LatAm markets: 64%

64%

for Tis

issue ue Pa Paper er and 34% 34% for Dia iaper ers

for the period 2012-2022

Tissue issue Pa Paper er and Baby by Diape iapers s Annual al Consump sumptio tion Gro rowth

Source: CMPC as of December 2012 Source: RISI Tissue World Report (June 2013) and Price Hanna Report (February 2013) * CAGR: Compound Annual Growth Rate

5.0% 6.3% 3.7% 4.2% 5.7% 4.2% 6.1% 5.6% 5.2% 4.9% 3.1% 2.7% 1.9% (0.1%) 4.4% 1.7% 1.3% 1.9% 2.3% 9.3% Latam Brazil Mexico Argentina Colombia Chile Peru Ecuador Uruguay Other Latam Tissue Paper (th. tons) Baby Diapers (th. units) 3,517 31,745 1,036 11,100 971 9,000 300 3,230 206 2,580 198 905 133 1,415 65 548 29 125 579 2,842

2012-2022 CAGR * Market Size (2012)

Honduras India Indonesia Guatemala El Salvador China, Ecuador, Peru, Colombi bia Brazil Costa Rica Venezuela Argentina na Panama Uruguay Mexico Chile Portugal Spain Italy Japan France UK Finland Germany Canada Australia Sweden USA 5 10 15 20 25 10 20 30 40 50 60 Tíssue ue Pape per App

• pp. Consum

umption n (k/ha hab. b.) GNI p/c (thous usand US$ at ppp pp)

GUAÍBA 2: CLOSER EVERY DAY

Guaíba 2 Project –March 2015.

26

GUAÍBA 2: PROJECT OVERVIEW 1.3 milli llion tons ns/y /year ear

Production capacity of eucalyptus market pulp

30MW MW

Excess Energy

US$2. 2.1 1 bill llio ion

Estimated Capex

2Q1 Q15

Startup

BRAZIL

208 km

Average distance from forests

260 km

Distance to ports by barges

100% %

Wood self-sufficiency

Ove Over r 120,000 ,000

Hectares planted with FSCTM Certification

27

THE GUAÍBA 2 PROJECT WILL BE ONE OF THE MOST EFFICIENT IN THE PULP INDUSTRY

High h yield d fo forestr try y base St Strategi gic c Location St State e of t the e art techno hnology logy Upgrade CMPC’s existing logistics Economies es of S Scale

Guaíba Terminal

Rio Grande de Terminal

28

GUAÍBA EXPANSION: ON SCHEDULE, ON BUDGET

95% 95%

Physical progress as of March 31st 2015

9,1 ,180

Workers on site

US$1,7 ,767 67 million lion

Disbursements as of March 31st 2015 Financi ancing ng Plan

Capital Increase: US$750 million 144A Debt Issuance: US$500 million BNDES Credit: BRL$ 2,510 million ECA Financing: US$340 million Sale of non-core assets: Bicecorp: US$106 million Contr trol

• l Room
• m

Dig igest ster Wood

• dyard

ard Chip ip Re Reclaimer mer

Guaíba 2 Project – March / April, 2015.

Recovery y Boil iler

AGENDA

I. Company description II. Our value proposal

1. Leading diversified Latin American P&P player 2. Low cost producer with world class assets 3. Strong balance sheet and financial track record 4. Committed to Sustainable Development and Corporate Governance 5. Investment portfolio in high growth potential businesses

III III. 2015 Challe lenges nges IV. Appendix

30

CMPC WILL BASE ITS STRATEGY IN 4 PILLARS TO CONSOLIDATE ITS LEADERSHIP IN THE P&P INDUSTRY

2.

• 2. Focus on cost

t cont ntro rol and enhance effi ficie iency ncy

• 1. Successfully execute its invest

estment ment pro rogram am 3.

• 3. Maintain a balanced capital

al structu ture re 4.

• 4. Consolidate CMPC’s culture among all business divisions and countries

AGENDA

I. Company description II. Our value proposal

1. Leading diversified Latin American P&P player 2. Low cost producer with world class assets 3. Strong balance sheet and financial track record 4. Committed to Sustainable Development and Corporate Governance 5. Investment portfolio in high growth potential businesses

III. 2015 Challenges IV. IV. Appendi dix

32

APPENDIX I: ANNUAL CAPACITY BY PRODUCT/COUNTRY

Business ess Area ea Produ roduct / Country ry Capacity Forestry Sawn wood 1.0 M m3 Remanufactured wood 190 th. m3 Plywood 500 th. m3 Pulp BSKP (Laja) 340 th. tons BSKP (Pacífico) 500 th. tons BEKP (Guaíba) 455 th. tons BEKP (Santa Fe) 1.496 th. tons Papers Boxboard 431 th. tons Paper Bags 93 th. tons 660 M bags Corrugated Paper 330 th. tons Corrugated boxes 285 th. tons Molded Pulp trays 18 th. tons 296 M bags Other Papers 140 th. tons Tissue Chile 166 th. tons Brazil 135 th. tons Argentina 99 th. tons Mexico 84 th. tons Peru 71 th. tons Uruguay 35 th. tons Colombia 27 th. tons

33

APPENDIX II: NEW BEKP CAPACITY IN THE 4OO+ MILLION TONNES FIBER MARKET

Source: RISI 5-year Forecast (2013-2018) - December 2013

417 mil illi lion

• n tons

s of total al fib ibers

[Conta taine nerboar board: d: 146 million tons]

[P&W: W: 109 million n tons ns] [Other her P&B: : 86 million n tons ns]

[Tissue ue: : 32 million tons ns]

[Newspri rint: t: 31 million tons]

59 million llion tons ns of mark rket t pulp lp 28 million llion tons ns of BHKP KP

Fib iber er Worl rld d Consu sumpt mption

• n requi

uired ed to

• prod

roduc uce e 403 mil illion

• n tons

s of Pa Paper& er&Bo Board ard

Virgin fiber r used to pro roduc uce Pa Paper&B r&Board

• ard

(million tons) Market Pulp consume umed d to manuf ufac acture ure Pa Paper&B r&Board

• ard - 2013

(million tons)

Virgin Pulp 183 million tons

(44%)

Recove

• vered

Paper 234 million tons

(56%)

Market Pulp 59 million tons

(32%)

Integrated 124 million tons

(68%)

BSKP 24 BHKP 28 Sulphite UKP 2 Mec 5

[BEKP: 16.8 million tons]

[Guaíba ba II: 1.3 .3 million tons]

CONTACT

INVESTOR RELATIONS

Trinidad Valdés mtvaldes@gerencia.cmpc.cl +(562) 2 441 2713

Disclaim aimer: This document provides information about Empresas CMPC SA. In any case this constitutes a comprehensive analysis of the financial, production and sales situation of the company, so to evaluate whether to purchase or sell securities of the company, the investor must conduct its own independent analysis. In compliance with the applicable rules, Empresas CMPC SA. publishes this document in 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.

Colomba Henríquez chenriquezb@gerencia.cmpc.cl +(562) 2 441 2791