EMPRESAS CMPC THIRD QUARTER 2013 RESULTS

Transcription

1 EMPRESAS CMPC THIRD QUARTER 2013 RESULTS November 7 th, 2013

2 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 ( 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 (

3 HIGHLIGHTS OF 3Q13 Total EBITDA reached US$258 million, 8% and 7% higher than 2Q13 and 3Q12, respectively. 258 New plywood line in Chile (+260,000 m 3 /year) % % Higher EBITDA margins in most business areas FSC TM seal for plywood and saw mill products +6bps +4bps Industry recognitions +1bps 3

4 FINANCIAL HIGHLIGHTS In U S$ Milllion QoQ YoY Revenues 1,209 1,291 1,231-5% 2% COGS (795) (871) (795) -9% 0% Other Operational Expenses (173) (181) (177) -2% 3% EBITDA % 7% EBITDA Margin % 20% 19% 21% 2% 1% Operational Result % 0% Non Operational Result (147) (102) (104) 2% -29% Net Inc ome % 3372% Revenue growth: a 2% YoY increase. EBITDA of US$258 million, up 8% when compared to 2Q13 and up 7% to 3Q12. Improved margins EBITDA margin of 21%, compared with 19% in 2Q13, and 20% in 3Q12. Volumes QoQ YoY Forestry + Solid Wood Prod. (1) ,001 8% 11% Market Pulp (2) % 1% Papers (2) % -11% Tissue Papers (2) % 7% Paper Products (2) % 5% Net Income of US$43 million, compared to US$31 million in 2Q13 and US$1 million in 3Q12. (1) Th. m 3 (2) Th. tons 4

5 OPERATIONAL ACHIEVEMENTS CMPC Forestry: Start up of new plywood line CMPC Tissue - Energy: New cogeneration plant for the Talagante mill +260,000 m 3 Start up: 3Q13 20 MW + 25 tons steam /hour Start up: 2Q15 CMPC Tissue: CMPC Pulp New double width tissue paper machine in Chile running at 77% rate *. Project on schedule and on budget. More than 1,500 workers on site * As of September

6 COSTS AND OTHER OPERATIONAL EXPENSES ANALYSIS 795 COGS (US$ Million) 871-9% +0% 795 COGS in 3Q13 were 65% of total revenues, compared with 67% in 2Q13 and 66% in 3Q12. COGS decreased 9% and were stable 3Q13 when compared to 2Q13 and 3Q12, respectively. One-off costs in Forestry, Pulp and Tissue division in 2Q13 Decrease in revenues compared to 2Q12 2Q12 1Q13 3Q13 Other operating expenses in 3Q13 were 14% of total revenues, stable from 2Q13 and 3Q12. Other Op. Exp. (US$ Million) Other Operational Expenses decreased 2% and increased 3% in 3Q13 when compared to 2Q13 and 3Q12, respectively. Decrease in revenues compared to 2Q12 Increase in revenues compared to 3Q12 Higher distribution costs compared to 3Q12 +3% -2% 2Q12 1Q13 3Q13 6

7 FORESTRY Sales * Revenues: +3% QoQ / +7% YoY EBITDA * Volumes: +8% QoQ: - +19% QoQ of plywood: back to normal operations - +13% QoQ of pulp wood: higher sales for exports - +11% QoQ of sawing logs: higher sales in the Argentinean Market - -5% QoQ of sawn wood: seasonality of domestic market, redirection of shipments - -2% QoQ of remanufactured wood: lower sales to the US and Japan due to high inventories * Figures in US$ million Volumes (Th. m 3 ) Pulpwood Sawing Logs Sawn wood Remanufactured wood Plywood Others Total ,001 Prices: -5% QoQ EBITDA: +48% QoQ - Higher sales - Lower direct costs - Higher margins in all products 7

8 PULP Sales * Revenues: -10% QoQ / +7% YoY Volumes: -5% QoQ - BSKP stable QoQ - BEKP -7% QoQ; decline in volumes exported to Venezuela to be recovered on 4Q. 95 EBITDA * Prices (including a small tonnage of P&W papers and energy sold to the SIC grid): -15% QoQ Net average effective export price: CIF 668 US$/ton for BSKP and CIF 643 US$/ton for BEKP * Figures in US$ million EBITDA: +7% QoQ - Lower direct costs - US$8 million from the Energy division Volumes (t h. Tons) BSKP BEKP Other Total Market Pulp

9 PAPERS 188 Sales * Revenues: Stable QoQ / -10% YoY EBITDA * Volumes: +2% QoQ: - +6% QoQ of boxboard: back to normal operations after low 1H % QoQ of corrugated papers: scheduled maintenance in the Puente Alto Mill. - +1% QoQ of newsprint Prices: -2% QoQ, due to decreases in boxboard prices * Figures in US$ million Volumes (th. Tons) Boxboard Newsprint Corrugated Paper Other Papers Total EBITDA: -2% QoQ - Lower sales - Lower pulp costs - Lower electricity costs 9

10 TISSUE Sales * Revenues: -1% QoQ / +2% YoY EBITDA * Volumes: Tissue Paper +2% QoQ; growth in foreign subsidiaries Sanitary Products +1% QoQ mainly due to the expansion of the diapers business through Latin America Prices (measured in US$) -3% QoQ for tissue paper and +3% QoQ for sanitary products, both affected by the US Dollar appreciation * Figures in US$ million Sales Volumes by Country EBITDA: +9% QoQ - Higher volumes - Lower energy and recycled paper costs 13% 13% 4% 3% 3% 146 th. Tons 19% 23% 22% Chile Brazil Argentina Mexico Peru Uruguay Colombia Ecuador 10

11 PAPER PRODUCTS Sales * EBITDA * Revenues: -19% QoQ / stable YoY Volumes: -20% QoQ: / +5% YoY - -26% QoQ of corrugated boxes due to seasonality - -2% QoQ of paper bags volumes - -39% QoQ of molded pulp trays volumes due to seasonality - YoY increment driven by a 20% in paper bags and molded pulp trays business Prices: -6% QoQ / -10% YoY * Figures in US$ million Volumes (t h. Tons) Corrugated Boxes Paper Bags Molded Pulp Trays Total EBITDA: -65% QoQ / -54% YoY - Lower sales - Lower prices - Higher costs of raw materials for corrugated boxes 11

12 DEBT ANALYSIS Conclusion of the Capital Increase shares auctioned at CLP$1, shares sold through preferential rights period at CLP$1,480. Total Capital Increase = CLP$ 230,175 million. Financial Ratios Net Debt/EBITDA ratio of 3.0x, stable from 2.9x in 2Q13 and 3.0x in 2Q12. Financial Debt/Net Tangible Worth ratio of 0.46x, stable from 0.46x in 2Q13 and 0.45x in 3Q12 Interest Coverage ratio of 5.5x, from 5.4x in 2Q13 and 5.3x in 3Q12. Debt by Issuer Debt by Currency Debt by Interest Rate Debt by Type 11% 1% 25% 5% 9% 22% 88% 70% 91% 78% Inversiones CMPC Tissue Other US$ CLP Other Fixed Rate Floating Rate Banks Bonds Cash of US$993 million in 3Q13, down 17% and up 9% from 2Q13 and 3Q12, respectively 12

13 MARKET PULP COMMENT Market Pulp demand (9M13 vs. 9M12) 3.4% World Source: PPPC 6.4% North America Pulp inventory days % Western Europe 3.3% Eastern Europe 2.6% Latin America 4.2% Japan % China Market pulp demand grew 5% in 3Q13 compared to 3Q12. Global demand for pulp rose 3.4% in the first nine months of 2013 compared with the first nine months of 2012 (+1.34 million tons), with a strong third quarter. Chinese demand grew 7.4% (+790,000 tons) end of a period of economic deceleration North American demand grew 6.4% (+340,000 tons) growing tissue paper production, new machines use BEKP Tighter supply for softwood due to limited supply; upward trend in prices. Unbalanced market for hardwood in the first part of the year. Better perspectives for 4Q due to a slow recovery in Europe and delays in commissioning of new mills. Global pulp inventories at the end of the third quarter stood at 34 days, stable from the end of the second quarter. 3Q12 4Q12 1Q13 2Q13 3Q13 Source: PPPC 13

14 CONCLUDING REMARKS Solid quarter of growth in terms of EBITDA and EBITDA margins. Strong performance in the Forestry and Pulp divisions. New plywood capacity and advance in the learning curve of new tissue machine to be factors in 2014 Guaíba pulp project continues on budget and on schedule Focus on core values of quality, efficiency and sustainability 14

15 Q&A