Corporate Presentation. June 2018

Transcription

1 Corporate Presentation June 2018

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 I. 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 +1 million hectáreas of land 45 mills CMPC s Figures Sales: $5,425 mm EBITDA: $1,267 mm EBITDA Margin: 23% Net Debt: $3,143 mm Assets: $15,164 mm Figures for the LTM as of March, 2018 (US$ million) Market capitalization of US$9.5 billion as of May 31 st, 2018 Shareholders Structure Chilean Pension Funds 10% International corporate rating BBB (stable) - Fitch BBB- (stable) - S&P Baa3 (stable) - Moodys Chilean and Foreign Investors 35% Matte Group 56% +25 product lines Local rating AA- (Fitch) AA (ICR) As of March 31 st, Source: CMPC 4

5 Successful growth history over the past three decades March ,267 4,125 5,425 15, Plantations Th. hectares Tissue Capacity Th. tons EBITDA 1,2 US$ million Pulp Capacity Th. tons Revenues 1 US$ million 1,312 Assets US$ million 5 Source: CMPC (1) Figures fort the LTM as of March (2) EBITDA (adjusted) is calculated by adding non-cash cost items to CMPC s net profit. Non-cash items include depreciation, stumpage and changes in biological assets values. 8

6 II. CMPC s Value Proposal Source: CMPC, RISI 15-year Forecast ( ) & PPPC- Dec 2016 I 6

7 CMPC s Value Proposal 2. Low cost producer with worldclass assets 4. Prudent financial management 1. Industry leader and well diversified P&P producer 3. Investments in high growth potential businesses 5. Commitment to sustainable development 7

8 Paper division Tissue division Pulp division 1 Large-scale vertically-integrated producer of multiple products Main Figures % of total sales % of consolidated EBITDA Total capacity & Employees Sales: $2,928 mm Sales 3 rd parties: $2,648 mm EBITDA: $1,002 mm EBITDA margin: 34% 49% 79% Forests 687 Th. has. planted 15.7 mm m3 harvested Capacity 1.6 million m3/y solid wood 4.1 million tons/y pulp capacity Employees 5,081 employees Sales:$1,949 Sales 3 rd parties: $1,949 mm EBITDA: $213 mm EBITDA margin: 11% 36% 16% Capacity 747 Th. tons/y Employees 8,262 employees Sales: $855 mm Sales 3 rd parties: $827 mm EBITDA: $78 mm EBITDA margin: 9% 15% 6% Capacity 430mm tons/y boxboard 270mm tons/y containerboard 216mm tons/y corrugated boxes 688mm units/y multiwall bags 370mm units/y molded fiber trays Employees 3,410 employees Total: $5,425 $1,267 Source: CMPC. Figures in US$ million for the LTM as of March, 2018 / Figures do not include Holding and Intercompany Sales. 8

9 1 Geographic & product diversity provides flexibility & cash flow stability Source: CMPC. Figures in US$ million for the LTM as of March, 2018 / Figures do not include Holding and Intercompany Sales. 9

10 E. Globulus Iberian E. Globulus Chile Acacia Mangium Eucalyptus Brazil E. Nitens Chile Russia Scandinavia Canada USA Chile 2 Pulp production in low-cost, high-yield geographies 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 Eucalyptus Average hardwood growth rate (m 3 ssc/ha/year) Radiata Pine Average softwood growth rate (m 3 ssc/ha/year) Km. 93 Km. 99 Km. 208 Km. Laja Pacífico Santa Fe Guaíba 93 Km. (by train) 163 Km. (by train) 119 Km. (by train) 260 Km. (by barges) Source: CMPC 10

11 2 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 100 CMPC s pulp facilities ,000 10,000 15,000 20,000 25,000 30, ,000 10,000 15,000 20,000 25,000 Th. metrics Tons Th. metrics Tons Source: CMPC and Hawkins Wright as of December

12 2 Unique region-wide tissue operation 11% 6% Mexico 22% 15% Ecuador 9% 4% Colombia CMPC s Tissue paper market share CMPC s baby diaper market share 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 54% Peru 38% 67% 29% Chile 8% 3% Brazil 81% 58% Uruguay Source: CMPC 41% 15% Argentina 12

13 2 Operational productivity and efficiency programs in all segments of CMPC Working capital reduction Productivity optimization program Renegotiation of electric contracts Improvement of our forestry base Renegotiation of logistic contracts 13

14 Million tons 3 Global paper demand evolution Newsprint Printing & Writing Containerboard Tissue Other Paper and Board Source: CMPC and RISI 14

15 3 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) UKP Mec 2 5 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 15

16 Tissue Paper App. Consumption (k/hab) 3 Tissue Paper Demand Dynamics Per capita annual consumption of tissue paper (in kilograms) (Countries in green are CMPC operation countries) DEMAND DRIVERS Argentina China Peru Brazil Colombia Ecuador Russia Vietnam Costa Rica Thailand India Philippines Mexico Croatia Chile Hungary Portugal Spain Italy Hong Kong Canada Austria Sweden Germany UK Finland Denmark Israel Netherlands New Zealand Australia France GDP per capita in US$'000 USA Population Growth & Urbanization Economic Growth Increase in AfH and non-higienic paper categories Product Quality Increase in Market Share & Product Consumption Source: CMPC as of

17 Packaging Paper Demand Dynamics 3 Macroeconomics & Demographic - Population growth - Urbanization - Rising disposable income E-commerce Sustainability - Circular economy - New packaging materials - Packaging redesign Digitalization - Intelligent packaging - Technology integration 17

18 4 Strong balance sheet & conservative debt profile Debt breakdown Total debt: $3,986mm Net debt: $3,143mm Debt by currency Debt by interest rate Debt by type BRL 3% Other 4% CLP 3% Variable Rate 7% BNDES 11% ECA 7% Banks 6% USD 90% Fixed Rate 93% Bonds 76% Amortization schedule 1, , / / / Note: Figures in US$ million as of March 2018 Bonds Banks 18

19 4 Stable credit metrics and prudent financial policies Net Debt to EBITDA 4,0x 3,7x 3,8x 3,5x 3,4x 3,4x 3,0x 3,1x 3,0x 2,5x 2,5x 2,0x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Interest coverage ratio 6,30x 5,87x 5,19x 4,63x 4,66x 4,89x 5,00x 5,30x 4,41x 4,30x 3,30x 2,30x 1,30x 0,30x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Financial Debt to Equity 0,90x 0,80x 0,70x 0,59x 0,57x 0,60x 0,53x 0,53x 0,53x 0,51x 0,49x 0,50x 0,40x 0,30x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1,70x 1,50x 1,30x 1,10x 0,90x 0,70x 0,50x 0,30x Cash / (18M Net Financial Interest + Amortizations) 1,59x 1,43x 1,10x 1,15x 0,94x 0,53x 0,54x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Source: CMPC Covenant Financial Policy 19

20 4 Positive free cash flow driving deleverage LTM Free Cash Flow Breakdown (March 2018) EBITDA Capex Dividends Net Financial Expenses Income Tax Working Capital Variation Free Cash Flow Source: CMPC 20

21 5 Commitment to Sustainable Development Member of the DJSI Chile, for third consecutive year Member of the new DJSI Mila Member of the FTSE4Good Index, for third consecutive year First Chilean Company to issue a Green Bond Energy Efficiency Gold Seal granted by the Energy Ministry of Chile and the Agency for Energy Efficiency 21

22 5 CMPC s Corporate Governance High corporate governance standards, in line with international best practices to continue growing and generating value to all our stakeholders in a responsible and sustainable way. Board of Directors 9 members, 2 independent Directors Committee Audit Committee Financial Risk Committee Corporate Affairs Committee Ethics and Compliance Committee 3 Directors, 3 Directors 3 Directors 2 Directors 2 Directors Chief Legal Officer Internal Audit Compliance Division Each Board of Directors Committee counts with a functioning protocol which defines its members, attributions and topics addressed. 22

23 Appendix: Business divisions

24 LTM Mar-18 ($US Million) SALES EBITDA ASSETS $2,648 $1,002 $ % 67% 73% Pulp division FORESTRY ASSETS* Forestry base: 1,150,000 has. Chile Planted: 471,000 has. 64% Pine, 32% Eucalyptus Brazil Planted: 157,300 has. ~100% Eucalyptus Argentina Planted: 58,300 has. ~ 100% Pine SOLID WOOD PRODUCTS* Sawn Wood Capacity: 960,000 m 3 Remanufactured Wood Capacity: 190,000 m 3 Plywood Capacity: 480,000 m 3 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 March

25 LTM Mar-18 ($US Million) SALES EBITDA ASSETS $1,949 $213 $2,301 Tissue division 36% 16% 17% MAIN CATEGORIES Consumer tissue products Sanitary products Away from home products TISSUE PAPER PRODUCTION CAPACITY* Chile 169,000 tons Brazil 134,000 tons Argentina 105,000 tons Mexico 140,000 tons Peru 133,000 tons Uruguay 35,000 tons Colombia 31,000 tons SANITARY PRODUCTS PRODUCTION CAPACITY* Diapers: 3,970 M units Feminine Care: 1,386 M units *As of March

26 LTM Mar-18 ($US Million) SALES EBITDA ASSETS $827 $78 $1,487 15% 15% Paper division 10% PRODUCTION CAPACITY* BOXBOARD 430,000 tons Chile PAPER BAGS 688 MM bags Chile: ~31% Peru: ~ 34% Mexico: ~ 25% Argentina: ~ 10% OTHER PAPERS 81,000 tons Chile (Sackraft) 60,000 tons Brazil (Printing & Writing) MOLDED PULP TRAYS 21,200 tons 370 MM units Chile CORRUGATED PAPER 270,000 tons Chile CORRUGATED BOXES 216,000 tons Chile *As of March