EMPRESAS CMPC COMPANY OVERVIEW

Transcription

1 EMPRESAS CMPC COMPANY OVERVIEW Presentation prepared for the BCI Investor Meeting Luis Llanos CFO April 2013

2 AGENDA I. Company description II. Our Value proposal 1. Leading diversified Latin American P&P player 2. Cost advantaged producer with world-class assets 3. Diversified investment portfolio in high growth potential businesses 4. Strong balance sheet and financial track record 5. Committed to sustainable development 2

3 CMPC AT A GLANCE CMPC is a P&P company, established in 1920, that produces solid wood products, pulp, paper, tissue and packaging products in Latin America CMPC s Figures Sales: 4,759 EBITDA: 914 Net Income: 202 Net Debt: 3,004 Assets: 14,046 Figures for the LTM as of Dec (US$ million) Market capitalization of US$8 billion as of March 31 st, 2013 Controlled by the Matte Family, one of Chile s leading economic groups BBB rating by S&P and BBB+ rating by Fitch P&P companies by market cap (US$ billion)* IP SCA KCM CMPC Fibria Stora Enso Suzano *As of March 31 st, Source: Bloomberg Shareholders Structure* Local & Foreign Investors 34% Chilean Pension Funds 11% * As of December 31 st, Source: CMPC Matte Group 55% Operations in 8 countries, selling to over 30 thousand clients in more than 45 countries 15,300 Employees worldwide 3

4 CMPC DIVERSIFICATION AND GROWTH THROUGH LATIN AMERICA CMPC has expanded significantly through Latin America over the last two decades. CMPC maintains operations in Chile, Brazil, Argentina, Mexico, Peru, Colombia, Uruguay and Ecuador Growth Plantations 237 th. hectares 722 th. hectares 3.0x Wood Products 267 th. m 3 1,430 th. m 3 5.4x Pulp 308 th. tons 2.8 million tons 9.1x Boxboard 31 th. tons 425 th. tons 13.7x Tissue Paper 43 th. tons 582 th. tons 13.5x Corrugated Boxes 55 th. tons 285 th. tons 5.2x Multiwall bags 74 million units 660 million units 8.9x Source: CMPC Forests Pulp Operations Paper Operations Tissue Operations Paper Products Operations Assets MUS$ 1,312 MUS$ 14, x Shareholders Equity Capex and M&A MUS$ 1,071 MUS$ 7, x > MUS$ 9,700 4

5 CMPC S DIFFERENCIATED BUSINESS MODEL CMPC has a long term business vision, which is focused on generating value through its traditional seal of innovation and prudence in all its business activities. Focus and Selectiveness Enter niche markets with competitive advantages and high growth potential in the P&P industry Cost Efficiency Constantly investing in the latest equipment and production efficiency to further lower costs Diversification Participate in several markets (products and geography), diminishing financial and commercial risks, identifying new opportunities Synergies Identify and develop business synergies, letting each business focus and adapt to its own market dynamics 5

6 Paper Products Tissue Paper Pulp Forestry A BALANCED GROWTH IN ALL BUSINESS SEGMENTS PROVIDES CMPC A DIVERSIFIED REVENUE MIX Main Figures % of third parties total sales % of consolidated EBITDA Total capacity & Employees Sales: 815 Sales 3 rd parties: 503 EBITDA: 159 EBITDA margin: 20% 11% 17% 722 Th. has. planted 13 M m 3 /y harvested 2,057 employees US$ 4.5 billion in assets Sales: 1,616 Sales 3 rd parties: 1,375 EBITDA: 364 EBITDA margin: 23% 29% 40% 2.8 M tons/y 1,847 employees US$ 5.1 billion in assets Sales: 876 Sales 3 rd parties: 725 EBITDA: 157 EBITDA margin: 18% 15% 17% 960 Th. tons/y 1,683 employees US$ 1.2 billion in assets Sales: 1,768 Sales 3 rd parties: 1,764 EBITDA: 208 EBITDA margin: 12% 37% 23% 582 Th. tons/y 7,668 employees US$ 2.3 billion in assets Sales: 415 Sales 3 rd parties: 392 EBITDA: 40 EBITDA margin: 10% 8% 4% 396 Th. tons/y 2,265 employees US$ 0.5 billion in assets Source: CMPC. Figures in US$ million for the LTM as of December 2012 / Figures do not include Holding and Intercompany Sales and EBITDA Source: CMPC 6

7 AGENDA I. Company description II. Our Value proposal 1. Leading diversified Latin American P&P player 2. Cost advantaged producer with world-class assets 3. Diversified investment portfolio in high growth potential businesses 4. Strong balance sheet and financial track record 5. Committed to sustainable development 7

8 1. LEADING DIVERSIFIED LATIN AMERICAN P&P PLAYER

9 Main Destinations Main Uses Facilities FORESTRY DIVISION: HIGH QUALITY TIMBER ASSETS AND STATE OF ART FACILITIES Key Facts 100% planted and certified forests. Strategic locations of industrial facilities: near to the forests and ports. Average ratio planting/harvesting (LTM as of December 2012) : 1.14 times. Forestal Mininco Sawn wood 1.0 M m 3 /y Remanufactured wood 190 Th. m 3 /y Plywood 240 Th. m 3 /y Chile: 731,888 has. 503,279 planted has. Chile : Bucalemu, Mulchén, Nacimiento Chile : Coronel, Los Angeles Chile : Mininco Brazil: 319,505 has. 159,074 planted has. Construction, Industrial Packaging and Furniture Construction and Remodeling Construction, Industrial Packaging and Furniture Argentina: 94,287 has. 59,235 planted has. Middle East, Japan, Mexico, China, South Korea United States, Japan, Australia, South Korea, Spain United States, Mexico, Italy, Australia, Netherlands 9

10 PULP DIVISION: LARGE SCALE PRODUCER WITH GLOBAL CLIENT BASE Market Pulp Capacity Ranking 2012 Fibria 5,280 APRIL Arauco CMPC 1,135 1,640 3,900 1, Georgia Pacific Suzano 355 1,920 1,950 Sodra 230 1,660 Pacífico Laja Weyerhaeuser 1,815 (Pine) 500 Th. tons/y (Pine) 370 Th. tons/y UPM-Kymmene 1, Source: CMPC and Hawkins Wright as of December 2012 (million tons) BHKP BSKP Diverse customer base with more than 370 customers over 35 countries Middle East 3% Others 2% Asia (excluding China) 24% Europe 35% Guaíba (Eucalyptus) 450 Th. tons/y Santa Fe (Eucalyptus) 1,510 Th. tons/y Source: CMPC China 27% Latin America 9% 10

11 Main Destinations Main Uses Operations PAPER DIVISION: STRATEGICALLY FOCUSED ON NICHE PAPER GRADES Key facts State of art technology & low cost producer. Extensive use of recycled paper. Diversified customer portfolio with over 3,000 clients in more than 30 countries. Plywood Boxboard 425 Th. tons/y Corrugated Paper 330 Th. tons/y Newsprint Other papers 65 Th. tons/y (1) 140 Th. tons/y Paper distribution Paper recollection 650 Th. tons/y (2) Chile: Maule, Valdivia Chile: Puente Alto Chile: Nacimiento Consumer packaging Industrial packaging Newspapers Chile: Laja (Sackraft) Brazil: Riograndense (Printing & Writing) Edipac: Most important paper distributor in Chile, with 36% of total market share Chile: Sorepa Colombia Argentina Peru Mexico Uruguay Chile, UK, Colombia, Peru, USA Chile, Argentina, Ecuador, Colombia Chile, Peru, Argentina, Ecuador Brazil Chile (1) On current conditions, with line I closed due to high energy costs. (2) Recycled paper collected in

12 TISSUE DIVISION: CMPC IS A LEADING LATIN AMERICAN PLAYER Key facts Second-largest tissue player in Latin America. Strong branding across broad range of tissue and sanitary products. Broad market segmentation and extensive distribution network with presence in all main categories of tissue and sanitary products. Domestic Consumption Sanitary Products Away from home Products Extensive use of recycled paper. High growth opportunities, due to low per capita consumption. Currency hedge: sales in local currencies. 12

13 Thousand tons TISSUE DIVISION: CMPC IS A LEADING LATIN AMERICAN PLAYER % 84% Tissue Paper Capacity Market Share 90% 80% Chile 48% 99 Argentina (1991) 35 Uruguay (1994) 54% 71 Peru (1996) 84 6% Mexico (2006) 12% 23% 27 - Colombia (2007) Ecuador (2009) % Brazil (2009) 70% 60% 50% 40% 30% 20% 10% 0% 13

14 Main Destinations Main Uses Operations PAPER PRODUCTS DIVISION: LOCAL SALES MAINLY ORIENTED TO EXPORT INDUSTRIES Key Facts Market leader in corrugated boxes and multiwall bags in Chile High level of customer service in order to deliver high quality packaging Plywood Corrugated boxes (Roble Alto) 140 Th. tons/y Corrugated boxes (Envases Impresos) 145 Th. tons/y Paper bags 93 Th. tons/y 660 MM bags/y Molded pulp trays 18 Th. tons/y 296MM units/y Chile : Quilicura, Til Til, Osorno Chile: Buin Chile: Chillán Argentina: Hinojo Peru: Lima Mexico: Guadalajara Chile: Puente Alto Industrial packaging, salmon and wine exports Fruit exports Cement, building materials, chemicals and food Apples, avocados and eggs Chile and Chilean export industries Chilean export industries Chile, Peru, Argentina, Mexico and United States Chile, Argentina, Mexico, Peru 14

15 CMPC HAS A PRODUCT AND GEOGRAPHIC DIVERSIFICATION OF SALES THAT PROVIDES FLEXIBILITY Plywood Source: CMPC. Figures in US$ million for the LTM as of December2012 / Figures do not include Holding and Intercompany Sales. 15

16 2. COST ADVANTAGED PRODUCER WITH WORLD-CLASS ASSETS

17 FORESTRY DIVISION: HIGH QUALITY TIMBER ASSETS AND STATE OF ART FACILITIES Faster growth cycle in the southern hemisphere Lower average distance to mills Less capital investment in land Southern Hemisphere Northern Hemisphere Plywood Proximity of forests to industrial facilities and ports Genetic and sylvicultural practices / forest management to enhance yield Source: CMPC 17

18 (US$/Ton c.i.f. N. Europe) (US$/Ton c.i.f. N. Europe) CMPC HAS ONE OF THE LOWEST CASH COSTS OF THE PULP INDUSTRY CMPC s average distance from to 80 Km. 80 Km. 93 Km. 99 Km. Laja Guaíba I Pacífico Santa Fe 93 Km. (By train) 260 Km. (By barges) 163 Km. (By train) 119 Km. (By train) Source: CMPC BSKP 1 Supply Curve (US$/ton) BHKP 2 Supply Curve (US$/ton) CMPC s pulp facilities CMPC s pulp facilities ,000 10,000 15,000 20,000 25,000 (Thousand metric tonnes) 0 0 5,000 10,000 15,000 20,000 25,000 30,000 (Thousand metric tonnes) Source: CMPC and Hawkins Wright as of March 2013 (1) BSKP: Bleached Softwood Kraft Pulp (2) BHKP: Bleached Hardwood Kraft Pulp 18

19 CMPC IS A COST ADVANTAGED PRODUCER WITH WORLD-CLASS ASSETS CMPC has a low cash cost position mainly explained by: Low cost access to fiber State of the art facilities Intensive use of recycled paper Research and development investments in order to improve efficiency and customer satisfaction 19

20 3. DIVERSIFIED INVESTMENT PORTFOLIO IN BUSINESSES WITH HIGH GROWTH POTENTIAL

21 CMPC HAS A DIVERSE PROJECT PORTFOLIO WITH GROWTH IN ALL BUSINESS AREAS FORESTRY Land purchases for forestry uses TISSUE Increase in conversion capacity of tissue paper and sanitary products ENERGY Investments in energy based on biomass and cogeneration TISSUE Double width machine - Talagante mill 50 th. ton/year US$ 78 million 2Q13 FORESTRY Expansion Plywood mill 240 th. m 3 /year US$ 95 million 3Q13 PAPER PRODUCTS Molded pulp tray expansion 7 th. tons/year US$8 million 2Q13 PULP Guaíba Expansion 1.3 million ton/year US$ 2.1 billion 1Q15 21

22 THE GUAÍBA II PROJECT WILL BE ONE OF THE MOST EFFICIENT IN THE PULP INDUSTRY Capacity rises 1.3 million tones/year, CMPC s BEKP capacity rises 65% Over 162,000 hectares planted Nursery with 300 million seedlings per year New pulp capacity to help CMPC diversify customer base and grow market share State of the art technology Upgrade CMPC s existing logistics Estimated Capex US$2.1 billion Financing Plan + Capital Increase + BNDES Credit + Local or international debt issuance + Sale of non-core assets + Additional funding available BRAZIL 100% wood self sufficient; supplied by forests with FSC Certification Average distance from the forests 180 km Energy capacity 176 MW, selling up to 30 MW into the electric system 22 22

23 Tissue Paper App. Cons (k/hab) CMPC WANTS TO TAKE ADVANTAGE OF LATAM UNDERPENETRATED TISSUE MARKETS Key facts High growth opportunities, due to low per capita consumption. Growing market share in countries were CMPC last entered, such as Brazil, Mexico and Colombia. Being a Latin American player allows CMPC Tissue to be more flexible in terms of paper supply. Regional player, but with local strategies and know how. R&D in order to increase customer satisfaction. Tissue per Capita Consumption Source: CMPC Portugal Mexico Chile Uruguay Peru Brazil Argentina Ecuador Colombia China India Spain Canada Japan France Sweden USA Market Penetration of Sanitary Products in Latin America Switzerland GNI per capita, PPP (US$ Thousand) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: CMPC Baby Diapers Adult Diapers Femenine Care 23

24 4. STRONG BALANCE SHEET AND FINANCIAL TRACK RECORD

25 FINANCIAL SUMMARY 4Q12 US$ Million 4Q Q12 4Q QoQ% YoY% Sales 1,119 4,797 1,209 1,211 4,759 0% 8% Operating Costs (797) (3,120) (795) (818) (3,163) 3% 3% Other Operating Expenses (154) (598) (172) (188) (682) 9% 22% EBITDA 167 1, % 23% Depreciation & Stumpage (103) (411) (101) (116) (425) 15% 12% Change in Net Value of Biological Assets % -38% Operating Income % 26% Financial Costs (42) (163) (45) (43) (175) -6% 2% Other Non Operational Items (6) (137) (102) (20) (148) -81% 207% Net Income % 21% EBITDA Margin 15% 22% 20% 17% 19% -3% 2% Total Assets 13,348 13,371 13,792 14,046 14,046 2% 5% Total Liabilities 5,485 5,483 5,780 6,061 6,061 5% 10% Shareholders' Equity 7,854 7,888 8,008 7,980 7,980 0% 2% Source: CMPC 25

26 CMPC S DEBT PROFILE AS OF DECEMBER 2012 Debt Profile Average term: 6.3 years Amortization schedule Bonds Banks Bonds 71% Banks 29% Source: CMPC as of December Last financial transactions: Other 6% US$ 78% CLP 16% Thereafter Source: CMPC MUS$600 syndicated loan (October 2011): 5 year MUS$400 Libor + 65 bps 3 year MUS$200 committed Libor + 70 bps Debt breakdown by interest rate (%) Fixed Rate Floating Rate 12% 26% 26% 16% 9% MUS$500 yankee bond (April 2012): 10 year UST bps 88% 74% 74% 84% 91% MUS$80 bank loan to Tissue Mexico (Sept. 2012) 3.5 year Libor bps Source: CMPC 26

27 CMPC HAS ONE OF THE HIGHEST CREDIT RATINGS IN THE INDUSTRY GLOBALLY Source: Public information for the LTM as of December

28 MAIN FINANCIAL METRICS Debt evolution (US$ million) Financial debt / equity Net Debt Cash x 0.42x 0.37x 0.43x 0.48x Plywood Net debt / EBITDA Source: CMPC EBITDA / interest expenses Source: CMPC 1.7x 3.3x 1.9x 2.3x 3.2x 10.1x 6.3x 8.6x 6.9x 5.5x Source: CMPC Source: CMPC 28

29 DEMONSTRATED CAPACITY TO MANAGE LEVERAGE Net Debt / EBITDA 5.0 Acquisition of 50% of Pacífico and Santa Fe I Santa Fe II investment period Acquisition of Guaíba I

30 5. COMMITTED TO SUSTAINABLE DEVELOPMENT

31 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY CMPC is committed to social responsibility and building long-term value for all stakeholders. Relationship with suppliers Employee Relations Community Relations Sustainability policy CMPC s CSR ISO Certifications: 9001, 14001, Our four priority work areas are: Development of renewable forest plantations Substitution of fuels with biomass Certification of our forestry management Clean productive processes and increase in paper recycling 31

32 CORPORATE GOVERNANCE Board of Directors Elections are held every three years. Scheduled meetings held once a month. Name Elected By Years as director Eliodoro Matte (Chairman) Controller Group 32 Martín Costabal Controller Group 7 Erwin Hahn AFP 2 Jorge Gabriel Larraín Controller Group 33 Arturo Mackenna Controller Group 2 Jorge Marín Independent 17 Directors Committee Represent minority shareholders. Current members: Erwin Hahn, Arturo Mackenna and Jorge Marín. Is responsible for, examining the reports prepared by the account inspectors and external auditors proposing external auditors and rating agencies examining the background information concerning related party transactions examining officers compensation systems and plans, among others matters. Bernardo Matte Controller Group 28 Senior Management Appointed by the board of directors. The controlling family members can not exercise as CMPC s managers Top managers with over 23 years experience in CMPC 32

33 TAKEAWAYS 1. Leading diversified Latin American P&P player 2. Continually investing to reduce costs 3. Growing footprint while expanding product range 4. Demonstrated capacity to deleverage 5. Committed to sustainable development 33

34 CONTACT INVESTOR RELATIONS Trinidad Valdés +(562) Colomba Henríquez chenriquezb@gerencia.cmpc.cl +(562)