EMPRESAS CMPC FOURTH QUARTER 2015 RESULTS

Transcription

1 EMPRESAS CMPC FOURTH QUARTER 2015 RESULTS March 7 th, 2016

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 2015: LANDMARK EXPANSION Successfully completed the Guaíba II hardwood pulp line in May 2015, full ramp up on December Increased capacity in 2H15 drove a 15% increase in full year pulp volumes. Double digit EBITDA growth across Pulp, Tissue and Forestry business. Smaller efficiency projects brought in line across region late in Leverage falls 60 basis points in 2H15 to 3.2x. 3

4 2015 HIGHLIGHTS Operational and Financial Highlights Lower costs and SG&A drive EBITDA growth. Positive effect of the US Dollar appreciation on operations. EBITDA of US$1,099, increasing 11% YoY. EBITDA margin of 23% up from 20% in Net income excluding the impact of currency movements on deferred taxes was US$410 million, compared with US$327 million in Progress with Investments Project Guaíba 2 reaches full capacity. Puente Alto, Altamira and Talagante mills cogeneration facilities in operation. Altamira tissue machine in operation. Growth across businesses Solid growth in volumes of Pulp and Tissue Hardwood volumes up 21% In U S$ Milllion %YTD Revenues 4,837 4,841 0% COGS (3,186) (3,117) -2% Other Operational Expenses (665) (625) -6% EBITDA 986 1, % EBITDA margin % 20% 23% 11% Operational Result % Non Operational Result (395) (679) 72% Net Income 138 (3) -102% Volumes %YTD Forestry + Solid Wood Prod. (1) 4,198 4,130-2% Market Pulp (2) 2,171 2,491 15% Papers (2) % Tissue Papers (2) % Sanitary Products (3) 4,309 4,646 8% (1) Th. m 3 (2) Th. Tons (3) M. units 4

5 COSTS AND OTHER OPERATIONAL EXPENSE ANALYSIS COGS (US$ Million) % +2% COGS increased 2% compared to 3Q15 due to: Maintenance costs in the Pulp division Forestry protection costs in the Forestry division 4Q15 COGS decreased 2% compared to 4Q14 mainly due to: Lower oil and energy prices Positive effect of Chilean peso and Brazilian real depreciation COGS in 4Q15 was 62% of total revenues, compared to 61% in 3Q15 and 66% in 4Q14 Other Operational Expenses were up 3% QoQ and down 6% YoY. The sequential variation was mainly explained by: Higher SG&A in the Pulp and Tissue divisions. The YoY variation was mainly explained by: Lower distribution costs in the Tissue and Paper divisions Positive effect of depreciation of local currencies Other operating expenses in 4Q15 were 13% of revenues, stable QoQ and down from 14% YoY Other Op. Exp. (US$ Million) % -6% 5

6 FORESTRY 150 Sales * Revenues: -3% QoQ / -13% YoY EBITDA * * Figures in US$ million Volumes (Th. m 3 ) Pulpwood Sawing Logs Sawn wood Remanufactured wood Plywood Others Total 1,153 1, Volumes: -6% QoQ: % sawing logs: lower sales in Brazil - - 9% remanufactured wood: lowers exports to the U.S % plywood: higher exports to Europe and Latin America - +7% sawn wood: higher exports to Latin America and Middle East -15% YoY: - -68% pulpwood: lower volumes in Argentina - -18% sawn wood: lower exports - -11% sawing logs: lower sales in Brazil - -9% remanufactured wood: higher competition and lower demand in the U.S. - +9% plywood: higher demand in the U.S. and Chile Prices: +3 QoQ and +3% YoY change in the product mix EBITDA: -7% QoQ: - Lower sales volumes - Higher costs related to forestry protection +23% YoY: - Lower direct costs. 6

7 PULP Sales * EBITDA * Revenues: +8% QoQ / +43% YoY Volumes: +7% QoQ - -2% BSKP: lower exports to Europe and Latin America - +9% BEKP: higher hardwood export, highlighting the US market (+85%) +46% YoY - +6% BSKP - +64% BEKP: startup of Guaíba 2 Prices (including a small tonnage of P&W papers and energy sold to the SIC grid): +2% QoQ - Average effective net export price was CIF 600 US$/ton for BSKP and CIF 595 US$/ton for BEKP - Spread between the two fibers was CIF 5 US$/ton, compared with CIF 11 US$/ton in 3Q15. * Figures in US$ million Volumes (t h. Tons) BSKP BEKP Total Market Pulp P&W Guaíba EBITDA: -8% QoQ - Lower pulp prices - Higher maintenance costs +73% YoY - Higher sales volumes, lower pulpwood and energy costs - Positive effect of local currencies depreciation on costs and expenses 7

8 PAPERS 253 Sales * Revenues: +1% QoQ / -17% YoY EBITDA * * Figures in US$ million Volúmenes ( miles ton.) 4T14 3T15 4T15 Cartulinas Sacos de Papel Otros Papeles Embalajes CMPC Papel para Corrugar Cajas de Cartón Corrugado Bandejas de Pulpa Total Volumes: +3% QoQ - +26% corrugated paper: higher export volumes to Latin America - +24% corrugated boxes; start of fruit season in Chile and higher salmon boxes volumes - +2% paper bags: higher local sales in Peru, Mexico, Chile and Argentina -11% YoY: - -20% corrugated paper: decrease in export sales and local sales in Chile - -14% molded pulp trays: decline in apple trays - -12% boxboard: higher competition in Latin America - -11% corrugated boxes: due to slower start of the fruit season in Chile - +2% paper bags: higher sales in Peru, Argentina and Mexico Prices: -2% QoQ, mainly due to lower prices in most products EBITDA: -2% QoQ - Higher SG&A and direct costs -24% YoY - Lower sales volumes and lower prices 8

9 TISSUE Sales * Revenues: -7% QoQ / -7% YoY EBITDA * Volumes: Tissue Paper: - -5% QoQ, lower sales volumes in all countries, except Mexico and Peru - +1% YoY, higher volumes in Mexico, Peru and Colombia Sanitary Products: - -5% QoQ, lower diaper volumes in Argentina, Peru, Brazil and Colombia, as well as lower feminine care products volumes in Chile, Argentina and Brazil. - +5% YoY, higher demand of diapers and feminine care products in most Latin American markets. Prices (measured in US$) -2% QoQ for Tissue paper and -2% for sanitary products * Figures in US$ million Volumes ( t h. Tons / M Unit s) Total Tissue Paper Diapers Feminine Care Others Total Sanitary 1,100 1,219 1,157 EBITDA: -13% QoQ - Lower volumes and prices in US dollars - Higher administration expenses +6% YoY - Higher volumes - Lower direct costs, lower energy and pulp prices - Lower SG&A, related to the depreciation of local currencies 9

10 DEBT ANALYSIS Cash of US$561 million in 4Q15, down 1% and 49% from 3Q15 and 4Q14, respectively Main uses of liquidity in 4Q15: US$128 million in CAPEX, debt payment US$209 million Financial Ratios Net Debt/EBITDA ratio of 3.2x, down from 3.5x in 3Q15 and 3.4x in 4Q14 Financial Debt/Net Tangible Worth ratio of 0.52x, down from 0.53x in 3Q15 and 0.56x in 4Q14. Interest Coverage ratio of 5.94x, up from 5.51x in 3Q15 and 5.31x in 4Q14 Debt by Issuer Debt by Currency Debt by Interest Rate Debt by Type 20% 6% 6%2% 1% 12% 9% 6% 6% 74% 86% 99% 73% Inversiones CMPC Tissue Pulp USD CLP BRL Other Fixed Rate Floating Rate Banks Bonds BNDES ECA 10

11 MARKET PULP COMMENTARY Demand Growth by Region 2015 vs th. Tons and % change +6.1% Global demand for pulp grew 1.7% in 4Q15 compared to 4Q14 Softwood demand grew 2.5% (+151 th. tons) Hardwood demand stable Eucalyptus demand grew 2.7% (145 th. tons) % North America +2.8% +0.9% Western Europe +4.2% +1.8% Eastern Europe Latin America Demand Growth by Grade 2015 vs th. Tons and % change +1.8% -3.5% Japan China Other Asia +5.0% Global demand for pulp increased 2.4% (1.34 million tons) in 2015 compared to 2014, while global capacity grew 2.2% (1.37 million tons) in the same period Chinese demand grew 6.1% (975 th. tons) Softwood demand grew 1.6% (380 th. tons) Hardwood demand grew 3% (900 th. tons) Eucalyptus demand grew 5% (1 million tons) Total chemical pulp producer inventories stood at 34 days at the end of December, 2015 compared to 33 days at the end of September, 2015 and 35 days at the end of December, % +2.1% Northern Softwood Southern Softwood -3.2% Radiata Softwood Northern Hardwood -2.9% Southern Hardwood Eucalyptus Source: PPPC, World Chemical Market Pulp Global 100 Report December

12 2016: CLOSE OF INVESTMENT PHASE 2015 results show competitive advantages of scale, efficiency and diversity Focus on consolidating benefits of expansion in Entering 2016 with expanded capacity across businesses Net Debt to EBITDA ratio to fall to 2.5x by year-end. 12

13 Q&A