Corporate Presentation. April 2017

Transcription

1 Corporate Presentation April 2017

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 the 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 ( Gestión de Riesgos ). Forward-looking statements speak only as of the date they are delivered, CMPC undertake no obligation to publicly update or revise them considering developments which differ from those anticipated.

3 1. CMPC at a glance

4 A global leader in P&P CMPC is a P&P company, established in 1920, that produces solid wood products, pulp, paper and packaging products and tissue in Latin America CMPC s Figures Sales: $4,866 mm EBITDA: $966 mm EBITDA Margin: 20% Net Debt: $3,573 mm Assets: $14,860 mm Market capitalization of US$6.1 billion as of March 31 st, 2017 International corporate rating BBB+ (negative) - Fitch BBB- (stable) - S&P Baa3 (stable) - Moodys Shareholders Structure Chilean and Foreign Investors 34% Chilean Pension Funds 10% Matte Group 56% Figures in US$ as of December, 2016 (US$ million) Local rating AA (Fitch) AA (ICR) As of March 31 st, Source: CMPC 4

5 Successful growth history Diversified strategy focused on reducing markets, products & client concentration Targeting growth products like BEKP and tissue Industry-leader with world-class operations focused on improving efficiencies Commitment & track record of investment in sustainability Prudent financial management to drive stakeholder value ,125 4,866 14, (as of Dec.16) ,312 Plantations Th. has. Tissue Capacity Th. tons EBITDA US$ million Pulp Capacity Th. tons Revenues US$ million Assets US$ million 5

6 2. CMPC s Value Proposal

7 1 Industry leader and well diversified producer

8 Tissue division Paper division Pulp division Large-scale vertically-integrated producer of multiple products Main Figures % of total sales % of consolidated EBITDA Total capacity & Employees Sales: $2,500 mm Sales 3 rd parties: $2,226 mm EBITDA: $632 mm EBITDA margin: 28% 46% 65% Forests 703 Th. has. planted 16.3 mm m 3 harvested in 2016 Capacity 1.6 million m 3 /y solid wood 4.1 million tons/y pulp capacity Employees 4,898 employees Sales: $868 mm Sales 3 rd parties: $836 mm EBITDA: $110 mm EBITDA margin: 13% 17% 11% Capacity 430mm tons/y boxboard 270mm tons/y containerboard 220mm tons/y corrugated boxes 730mm units/y multiwall bags 370mm units/y molded fiber trays Employees 3,548 employees Sales:$1,806 mm Sales 3 rd parties: $1,803 mm EBITDA: $242 mm EBITDA margin: 13% 37% 25% Capacity 646 Th. tons/y Employees 8,732 employees Total: $4,866 $966 Source: CMPC. Figures in US$ million as of December / Figures do not include Holding and Intercompany Sales. 8

9 Geographic & product diversity provides flexibility & cash flow stability Source: CMPC. Figures in US$ million as of December / Figures do not include Holding and Intercompany Sales. 9

10 2 Strong market position in countries and markets with high growth potential

11 Dynamics of the pulp market FIBER WORLD CONSUMPTION required to produce 411 million tons of Paper&Board VIRGIN FIBER used to produce Paper&Board (M tons) MARKET PULP consumed to manufacture Paper&Board (M tons) Mec 5 UKP 2 Sulphite Recover Paper 244 million tons (57%) Virgin Pulp 181 million tons (43%) Integrated 117 million tons (65%) Market Pulp 64 million tons (35%) BSKP 25 BHKP million tons of total fibers 64 million tons of market pulp 32 million tons of BHKP Source: CMPC, Hawkins Wright and RISI 11

12 Million tons Million tons Growing capacity to meet global demand for pulp MARKET PULP DEMAND CMPC PULP CAPACITY EVOLUTION ,075 1, BSKP BHKP BEKP 1,156 1,156 1,156 1,230 1,310 1,496 1,496 1,496 1,496 1, Th. tons BSKP (Chile) BEKP (Chile) BEKP (Brazil) Source: CMPC and Hawkins Wright 12

13 Tissue Paper App.Consumption (k/hab) Leading player in underpenetrated tissue markets 25 Per capita annual consumption of tissue paper (in kilograms) (Countries in green are CMPC operation countries) USA Finland UK Israel New Zealand Spain Costa Rica Chile Portugal Italy France Hungary Croatia Canada Austria Sweden Germany Denmark Ireland Netherlands Australia Hong Kong Switzerland Source: CMPC as of December Mexico Peru China Brazil Venezuela Ecuador Colombia Argentina Malaysia Russia Taiwan Thailand Vietnam Indonesia Philippines India GDP per capita in US$

14 CMPC s Tissue paper market share Unique region-wide tissue operation 7% 5% Mexico More than 40 years of expertise in the LatAm consumer business Top 5 tissue and sanitary products producer in every major Latin American market Range of brands & products to take advantage of economic cycles Focused on growth in key markets and underpenetrated sanitary product markets Steady expanding capacity, combination of organic & inorganic growth 24% 11% Ecuador 54% Peru 8% Chile Colombia 23% 76% 27% 4% CMPC s baby diaper market share 8% Brazil 2% 83% 56% Uruguay Source: CMPC and Nielsen 44% 11% Argentina 14

15 Million tons Repositioning paper business to focus on growth area of packaging GLOBAL PAPER DEMAND EVOLUTION Aiming to expand in folding boxboard to capture growth trends Extensive use of recycled paper, major paper recycler in Chile Closed newsprint operations in Newsprint Printing & Writing Containerboard Tissue Other Paper and Board Source: CMPC and RISI 15

16 3 Strategically located low cash-cost operations

17 E. Globulus Iberian E. Globulus Chile Acacia Mangium Eucalyptus Brazil E. Nitens Chile Russia Scandinavia Canada USA Chile US$/Ton c.i.f. China US$/Ton c.i.f. China Pulp production in low-cost, high-yield geographies BHKP CASH COST US$/ton cif China BSKP CASH COST US$/ton cif China CMPC s pulp facilities CMPC s pulp facilities 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Th. metrics Tons Eucalyptus Average hardwood growth rate (m 3 ssc/ha/year) ,000 10,000 15,000 20,000 25,000 Th. metrics Tons Radiata Pine Average softwood growth rate (m 3 ssc/ha/year) Source: CMPC and Hawkins Wright as of December

18 Strategically located pulp facilities Distance From Plantations Mill Transport to Ports 80 km Laja 93 km / By Train 93 km Pacífico 163 km / By Train 99 km Santa Fe 119 km / By Train 208 km Guaíba 260 km / By Barges 18

19 Efficiency as a core value Focused on reducing working capital & leverage Optimizing asset base Additional efficiencies at the mills derived from purchasing, transportation & maintenance costs Efficient energy production and utilization 19

20 4 Prudent and conservative financial management and adequate debt profile

21 Strong balance sheet & conservative debt profile Debt breakdown Debt by currency Debt by interest rate Debt by type Debt by issuer/division BRL 6% $326 $279 CLP 3% $47 Other 3% USD 88% Amortization schedule Average term: 5.7 years Average cost in US$: 4.2% Note: Figures in US$ million as of December 2016 Floating 4% $646 $683 $147 $185 Fixed 96% Bonds Banks Interests $771 $276 $499 $498 $140 $495 $140 $1,121 $ / / /39 BNDES 14% Banks ECA 6% Total debt: $4,169mm Bonds 72% $991 Tissue 6% Pulp 22% Inversiones CMPC 72% $482 $482 21

22 Stable credit metrics and prudent financial policies Sales Evolution (US$mm) EBITDA and EBITDA Margin Evolution (US$mm) 4,837 4,841 4, $986 $1,099 $ % 22.7% 19.9% % 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Debt and Net Debt to EBITDA Interest coverage ratio ¹ 4.6x 3.4x Debt/EBITDA 3.7x Net Debt/EBITDA 4.3x 3.7x 3.2x 5.3x 5.9x 4.7x Source: Public company filings 1. Interest coverage ratio is calculated as EBITDA (as adjusted) plus Finance income divided by Finance costs

23 Multiple avenues for growth to drive financial results Growing tissue business Capitalizing on turnaround in pulp prices Targeting growth in boxboard and plywood business Optimizing efficiencies across business 23

24 5 Commitment and proven track record of sustainability

25 Strong commitment to sustainable development of forests and environment FSC Certifications Examples of efforts in community relations Paper recycling capabilities, highlighting tissue. Large LatAm Land Owner (+1 million hectares & US$3.5 billion biological assets) Member of the DJSI Chile, for second consecutive year First Chilean company to issue a Green Bond CMPC purchases diminished land Plants new seed and manages growth Produces large forest of CO 2 consuming trees Utilizes green energy through biomass from plantations Recycles paper, then uses it to produce other papers 25

26 Corporate governance valued leadership Luis Felipe Gazitúa Chairman Vivianne Blanlot Rafael Fernández Independent Jorge Larraín Jorge Marín Independent Jorge Matte Bernardo Matte Ramiro Mendoza Pablo Turner Board of Directors increased to 9 from 7 members Directors Committee comprised by 3 board members (2 independent) 26

27 Appendix: Business divisions..

28 Dec ($US Million)* SALES EBITDA ASSETS 2,226 $632 $11,100 46% 66% 76% Pulp division FORESTRY ASSETS* Forestry base: 1,086,000 has. Chile Planted: 488,000 has. 66% Pine, 31% Eucalyptus Brazil Planted: 157,200 has. ~100% Eucalyptus Argentina Planted: 58,200 has. ~ 100% Pine SOLID WOOD PRODUCTS* Sawn Wood Capacity: 960,000 m3 Remanufactured Wood Capacity: 190,000 m3 Plywood Capacity: 480,000 m3 PULP* Chile BSKP - Laja Mill Capacity: 364,000 tons BSKP - Pacifico Mill Capacity: 500,000 tons BEKP - Santa Fe Mill Capacity: 1,496,000 tons Brazil BEKP - Guaíba Mill Capacity: 1,765,000 tons *As of December

29 Dec ($US Million)* SALES EBITDA ASSETS $1,803 $242 $2,050 Tissue division 37% 25% 14% MAIN CATEGORIES Consumer tissue products Sanitary products Away from home products TISSUE PAPER PRODUCTION CAPACITY* Chile 159,000 tons Brazil 131,000 tons Argentina 99,000 tons Mexico 123,000 tons Peru 71,000 tons Uruguay 34,000 tons Colombia 28,000 tons SANITARY PRODUCTS PRODUCTION CAPACITY* Diapers: 3,463 M units Feminine Care: 1,210 M units *As of December

30 Dec ($US Million)* SALES EBITDA ASSETS $836 $110 $1,430 17% Paper division PRODUCTION CAPACITY* 11% 10% BOXBOARD 429,000 tons Chile PAPER BAGS 106,500 tons 672 MM bags Chile: ~31% Peru: ~ 34% Mexico: ~ 25% Argentina: ~ 10% OTHER PAPERS 80,000 tons Chile (Sackraft) 60,000 tons Brazil (Printing & Writing) MOLDED PULP TRAYS 21,200 tons 380 MM units Chile CORRUGATED PAPER 316,000 tons Chile CORRUGATED BOXES 240,000 tons Chile *As of December