Corporate Presentation. September 2018

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Edmund Hodge
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1 Corporate Presentation September 2018

These risks include in particular those described in CMPC s Financial Statements, Note 3 ( Gestión de Riesgos ).

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. Investor Relations Contacts Colomba Henríquez colomba.henriquez@cmpc.cl Petya Miteva petya.miteva@cmpc.cl Agustina Mussolini agustina.mussolini@cmpc.cl

3 Index I. CMPC at a Glance II. III. IV. Competitive Advantages Industry Drivers Strategy V. Appendix 33

4 4 CMPC at a Glance

5 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. 4th Global Market Producer 2 Pulp CMPC figures 1 Tissue 34% Sales $5,753 15% Paper Pulp 51% Paper 6% Tissue 14% Tissue 13% Paper 10% Assets $14,770 Pulp 76% 2nd Producer in LatAm 3 Tissue Investment Grade Company Fitch: BBB (stable) Moody s: Baa3 (stable) S&P: BBB- (stable) EBITDA $1,485 Pulp 81% Competitive BEKP & BSKP Cash Cost 1 Source: Source: CMPC. Figures for the LTM as of June, 2018 (USD million) 2,3 Source: Hawkins Wright, RISI 5

6 Vertically integrated million 670,000 Planted hectares Pine 52% Eucalyptus 48% m3 / year Solid Wood Products HW 3,234,000 SW 864,000 tons / year Containerboard 270,000 Boxboard 430,000 Sackraft 81,000 tons / year Papers Corrugated boxes 216,000 tons / year Paper bags 688 MM units / year Packaging Pulp Market Pulp 745,000 tons / year Tissue Products: 615,000 Tissue Paper tons / year Recycled Paper Source: CMPC. 6

7 ... and well-diversified player,,,, Source: CMPC. Figures in US$ million for the LTM as of June, 2018 / Figures do not include Holding and Intercompany Sales., 7

CMPC s Corporate Governance & Shareholders Structure High corporate governance standards, in line with international best practices to continue growing and generating value to all our stakeholders in

8 CMPC s Corporate Governance & Shareholders Structure 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. Shareholder s Structure 1 Corporate Governance Chilean and Foreign Investors 34% Chilean Pension Funds 10% Each Board of Directors Committee counts with a functioning protocol which defines its members, attributions and topics addressed. 56% Matte Group 1 As of June 30th, Source: CMPC

9 Competitive Advantages 9

Forestry assets in low-cost, high-yield geographies with continuous productivity growth

43 27.2 11 20 23 1.4 8.2 19.0 E. Globulus Iberian E.

Nitens Chile 1994-1996 1997-1999 2000-2014 2015-2017 Radiata Pine Average softwood growth

10 Forestry assets in low-cost, high-yield geographies with continuous productivity growth Eucalyptus Average hardwood growth rate (m3ssc/ha/year) Eucalyptus Nitens Volume Gain (%) E. Globulus Iberian E. Globulus Chile Acacia Mangium Eucalypus Brazil E. Nitens Chile Radiata Pine Average softwood growth rate (m 3 ssc/ha/year) Radiata Pine Volume Gain (%) Russia Scandinavia Canada USA Chile Source: CMPC

11 Cash Cost Cash Cost Strategically located pulp facilities BSKP Cash Cost USD/ton cif China Source: CMPC CMPC s pulp facilities CMPC s pulp facilities 0 5,000 10,000 15,000 20,000 25,000 5,000 10,000 15,000 20,000 25,000 Th. Metric Tons Th. Metric Tons 11

12 9% 4% 11% 6% México TM 1 : 1,113 G 2 : 2.3% 54% 38% 22% 15% Ecuador TM 1 : 72 G 2 : 4.8% Colombia TM 1 : 221 G 2 : 4.3% Unique Region-Wide Tissue Market Presence More than 40 years of expertise Top 5 tissue and sanitary in the LatAm consumer business. products producer in every major Latin American market.. Focused on growth in key markets and underpenetrated sanitary product markets. Steady expanding capacity, combination of organic & inorganic growth. 8% 3% Perú TM 1 : 171 G 2 : 7.1% 67% 81% Brazil TM 1 : 1,243 G 2 : 4.4% 58% CMPC s Tissue paper market share 29% 41% CMPC s baby diaper paper market share Source: CMPC, RISI 1 TM: Total Tissue Market in th. Tons Chile TM 1 : 233 G 2 : 5.2% 15% Argentina 2 G: CAGR TM 1 : 327 G 2 : 3.5% Uruguay TM 1 : 38 G 2 : 8.4% 12

13 Comprehensive Portfolio of Well-Known and Well-Regarded Brands Tissue Paper Away from Home Sanitary Products Source: CMPC 13

CMPC s boxboard is a multilayer fiberbased product with multiple competitive advantages Multilayer Boxboard Low production cost Ratio between weight and rigidity Printing quality Transporting

14 CMPC s boxboard is a multilayer fiberbased product with multiple competitive advantages Multilayer Boxboard Low production cost Ratio between weight and rigidity Printing quality Transporting efficiency Conversion efficiency Product consistency Health safety Local US producers cash cost curve USD / Ton 1, Average CMPC boxboard cash cost at US port Source: CMPC

15 IndustryDrivers

16 Global Paper Demand Evolution Population Growth Urbanization Economic Growth Rising disposable income Increase in Product Quality E-Commerce Circular Economy Intelligent Packaging Other Paper and Board Tissue 150 Containerboard Printing and writing Newsprint

17 Dynamics of the Pulp Market Source: Hawkins Wright,

18 Annual change in BKP capacity (million tons) Total Cpacity by grade (million tons) Pulp supply short & medium term perspectives 4,0 3,5 BHKP 40,0 38,0 3,0 36,0 2,5 34,0 2,0 32,0 1,5 1,0 BSKP 30,0 28,0 0,5 26,0 0,0-0, ,0 22,0-1,0 20,0 Sources: PPPC World 20 and Global 100 Statistics 18

19 Tissue Paper App. Consumption (k/capita) Tissue Paper Demand Dynamics Per capita annual consumption of tissue paper (in kilograms) (Countries in green are CMPC operation countries) Source: CMPC as of 2017 GDP per capita in USD'000 19

20 Strategy

21 CMPC s Strategy Efficiency & Productivity Growth Profitability 21

22 Pulp Strategy: Improving margins through operational excellence Forest Base Expansion Operational Excellence Program Increase our forestry base in Brazil in order to prepare future growth in pulp +8% 1 +11% 1 Plywood Laja Mill Pacifico Mill 2 L1:+9% 1 L2:+4% 1 Santa Fe Mill Guaiba Mill 2 1 Increase in production efficiency (%) between 2016 and Operational excellence programs are still underway and haven t had one full cycle yet or will be launched beg

23 Tissue Strategy: Leading Latin American Producer Profitability Strategy Tissue Revenue Management Leading markets Route to Market Operational Excellence Program Procurement Cost Reduction Fiber Management 67% 41% 54% 81% 54 th USD 130 tons Million Zárate tissue machine 4Q19 54 th USD 140 tons Million Cañete tissue machine 1Q17 Opportunity markets 8% 11% 23

Packaging Strategy: Expand business and gain efficiencies Global packaging market expected to grow USD bn 400 350 300 250 200 150 100 + 3% per year 2017-2022 Expand our business on the back of a

24 Packaging Strategy: Expand business and gain efficiencies Global packaging market expected to grow USD bn % per year Expand our business on the back of a growing packaging market given new packaging trends: Replacing the use of plastic E-commerce Corrugated products as a merchandising medium in the battle for consumers Bolster our regional footprint leveraging our quality (high quality fiber) and low cost (integrated operations), supported by the global presence of the CMPC group F Increase profitability by: Capturing internal synergies Improving efficiency through operational excellence Cost reductions by improving our entire supply chain 24

25 Profitability EBITDA Margin Free Cash Flow LTM 60% 50% 49% % 30% 20% 10% 31% 10% 200 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q CMPC Pulp Tissue Papers 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 ROIC Drivers Higher pulp volumes and prices Efficiency and productivity initiatives Lower SG&A expenses in Tissue 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 8,5% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Source: CMPC. * ROIC = (EBITDA Depreciation Stumpage) / (Operative receivables + Inventories + Property, Plant and Equipment Net + Biological Assets (Stumpage Value) Operative Liabilities) 25

26 Prudent financial management: conservative debt profile Debt by currency Debt by interest rate Debt by type Debt breakdown $4,031 mm Total debt CLP Other 3% 4% 2% BRL Variable Rate 1% Banks 6% ECA 7% BNDES 10% $3,198 mm Net debt $639 mm 91% USD 99% Fixed Rate 77% Bonds Cash 1,359 Banks 1, Bonds , Source: CMPC, as of June / / /

27 Prudent Financial Management: Stable credit metrics and prudent financial policies Net debt to EBITDA Interest coverage ratio 4,0x 3,5x 3,0x 2,5x 2,0x 3,7x 3,8x 3,4x 3,1x 3,0x 2,5x 2,2x 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 8,30x 7,30x 6,30x 5,30x 4,30x 3,30x 2,30x 1,30x 0,30x 7,02x 4,89x 5,87x 4,66x 4,41x 4,63x 5,00x 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Financial debt to equity Cash / (18M Net Financial Interest + amortization) 0,90x 0,80x 0,70x 0,60x 0,50x 0,40x 0,53x 0,53x 0,59x 0,57x 0,51x 0,49x 0,48x 1,70x 1,50x 1,30x 1,10x 0,90x 0,70x 0,50x 0,54x 0,94x 1,43x 1,59x 1,10x 1,15x 0,98x 0,30x 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 0,30x 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Financial Policy Covenant 27

28 Committed to Sustainable Development First Chilean Company to issue a Green Bond Member of the FTSE4Good Index, for third consecutive year Energy Efficiency Gold Seal granted by the Energy Ministry of Chile and the Agency for Energy Efficiency 28

29 Appendix

30 LTM June 2018 (USD Million) Pulp Division Sales $2,406 EBITDA $798 Assets $10,727 49% 82% 76% Forestry assets* 1,150,000 has Forestry base Solid wood products* Pulp* Chile 471,000 Planted has Pine 64% Eucalyptus 32% Sawn wood 960,000 m3 capacity 364,000 Tons capacity BSKP / Laja Mill Brazil 157,300 Planted has Eucalyptus 100% Remanufactured wood 190,000 m3 capacity Chile 1,496,000 Tons capacity BSKP / Santa Fe Mill 500,000 Tons capacity BSKP / Pacifico Mill Argentina 58,300 Planted has Plywood 480,000 m3 capacity Brazil 1,765,000 Tons capacity Pine 100% *As of December

31 LTM June 2018 (USD Million) Tissue Division Sales $1,923 EBITDA $215 Assets $2,365 34% 13% 16% Main categories Tissue paper production capacity* Sanitary products Production capacity* Consumer tissue products Sanitary products Away from home products Chile 169,000 Brazil 134,000 Argentina 105,000 Mexico 140,000 tons Diapers 3,970 Feminine care 1,386 M units M units Peru 133,000 Uruguay 35,000 Colombia 31,000 *As of December

32 LTM June 2018 (USD Million) Paper Division Sales $814 EBITDA $86 Assets $1,472 6% 15% 10% Production capacity Boxboard 430,000 tons Chile Other papers tons 81,000 60,000 Chile Sackraft Brazil Printing and writing Paper bags 688 MM bags Chile 31% Peru 34% Corrugated boxes 216,000 tons Chile Corrugated paper 270,000 tons Chile Molded pulp trails 21,200 tons 370 MM units Chile Mexico Argentina 25% 10% *As of December

Corporate Presentation. October 2018

Corporate Presentation. October 2018 Corporate Presentation October 2018 Forward-Looking Statements This presentation may contain forward-looking statements that should be considered as good faith estimates. Such statements are subject to