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Corporate PresentationMarch 2020
Forward-Looking Statements
Investor Relations Contacts
Colomba Henríquez
+56 2 2441 2791
Petya Miteva
+56 2 24412713
Blanca Lecaros
+56 2 2441 2616
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 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
(“Risk Management”).
Forward-looking statements speak only as of the date they are
delivered. CMPC undertakes no obligation to publicly update or
revise them based on developments which differ from those
anticipated.
2
Index
I. CMPC at a Glance
II. Competitive Advantages
III. Industry Drivers
IV. Strategy
V. Appendix
3
CMPC at a Glance
4
74%
17%
11%
Pulp
Softys
Biopackaging
Assets
$14,956
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 Figures 1
1 Source: CMPC. Figures for the LTM as of December 2019 (USD million)
2,3 Source: Hawkins Wright, RISI
4th
Global Market Producer 2
Pulp
5th
Global Producer
Paper Sacks
Investment Grade
CompanyFitch: BBB (stable)
Moody’s: Baa3 (positive)
S&P: BBB- (stable)
5
17%
79%
6%Softys
Pulp
Biopackaging
EBITDA
$1,169
47%
16%
37%
Sales
$5,670
Softys
Biopackaging
Pulp
2nd
Producer in LatAm 3
Tissue
1st
Largest LatAm Exporter
Boxboard
6Source: CMPC, as of December 2019
Vertically integrated...
tons / year
Pulp
tons / year
Recycled Paper
tons / year
HW 3,179,000
SW 779,000
730,000
Planted hectares
1.6 millionm3 / year
Solid Wood Products
Market Pulp
525,000
260,000
530,000
69,000
765,000
tons / year
Tissue Paper
Products
211,000tons / year
732 MMunits / year
396 MMunits / year
tons / year
Market Pulp
tons / year
Boxboard
Sackraft
Containerboard
Paper Sacks
Molded pulp trays
Corrugated boxes
m3 harvested
18,7 million
~90%
Source: CMPC. Figures in USD million for the LTM as of December, 2019 / Figures do not include Holding and Intercompany Sales
... and well-diversified player
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 a responsible and sustainable way.
Shareholder’s Structure 1 Corporate Governance
1 Source: CMPC, as of December 31st, 2019
Chilean Pension FundsChilean
and Foreign Investors
Matte Group
10%
56%
34%
Each Board of Directors Committee counts with a functioning protocol which
defines its members, attributions and topics addressed.
8
Committed to Sustainable Development
Reduce by 50%(1) absolute greenhouse gas emissions(2)
by 2030
Reduce by 25%(1) industrial use of water per ton produced
by 2025
Zero waste to landfill by
2025Conserve/restore 100,000
hectares by 2030
Conservation & RestorationWaste
WaterClimate Change
Environmental Targets
CMPC owes its existence to the natural environment, which isthe source of its business and whose fruits enable theCompany to contribute to the future wellbeing of society.
Commitment to Sustainable Development Goals
9(1) Using 2018 consumption as a baseline
(2) Greenhouse gas emissions scope 1 and 2
CMPC subscribes to the UN Global Compact Sustainable Development Goals and develops and actively participates in projects and initiatives to contribute towards achieving them.
Partnerships & Recognitions
Competitive Advantages
10
Forestry assets in low-cost, high-yield geographies with continuous productivity growth
Eucalyptus
Radiata Pine
Average hardwood growth rate (m3ssc/ha/year)
Average softwood growth rate (m3ssc/ha/year)
Eucalyptus Nitens
Radiata Pine
Volume Gain (%)1
Volume Gain (%)1
Source: CMPC1Achieved through continuous traditional genetic and silvicultural improvements.
11
20 23
43 43
E. Globulus
Iberian
E. Globulus
Chile
Acacia
Mangium
Eucalypus
Brazil
E. Nitens
Chile
24 5
11
20
Russia Scandinavia Canada USA Chile
1.4
8.2
19.0
27.2
1994-1996 1997-1999 2000-2014 2015-2017
06.0
15.1
25.8
35.7
1975 1976-1994 1995-2009 2010-2015 2016-2017
11
Strategically located pulp facilities
12
BSKP Cash Cost
USD/ton cif China
Th. Metric Tons
BHKP Cash Cost
USD/ton cif China
Ca
sh C
ost
Th. Metric Tons
CMPC’s pulp facilities
Source: CMPC, Hawkins Wright August 2019
Ca
sh C
ost
CMPC’s pulp facilities
0
100
200
300
400
500
600
700
0 5.000 10.000 15.000 20.000 25.0000
100
200
300
400
500
600
700
0 5.000 10.000 15.000 20.000 25.000 30.000 35.000
ColombiaTM1: 228G2: 4.1%
11%
4%
EcuadorTM1: 78G2: 6,9%
19%
10%
PeruTM1: 192G2: 7.3%
52%
35%
BrazilTM1: 1,285G2: 4.0%
20%
5%
ChileTM1: 234G2: 4.6%
68%
29%
CMPC’s Tissue paper market share
CMPC’s baby diaperpaper market share
40%
18%
ArgentinaTM1: 367G2: 3.5%
84%
54%
UruguayTM1: 39G2: 8.0%
13%2%
MexicoTM1: 1,152G2: 2.4%
Unique Region-Wide Tissue Market Presence
13
Source: CMPC, RISI, NRI Nielsen
1 TM: Total Tissue Market in th. Tons as of 2019
2 G: CAGR 2007-2017
More than 40 years of
expertise in the LatAm
consumer business.
.
Top 5 tissue and sanitary
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.
Comprehensive Portfolio of Well-Known and Well-Regarded Brands
Away from Home Personal Care ProductsTissue Paper
Source: CMPC
14
Source: CMPC
15
Food &
Beverage
Consumer
Goods
Pharmaceutical Building
materials
Food &
agricultural
products
Chemicals &
minerals
Industrial Produce Salmon
Cost competitiveness from fiber
and vertical integration
Long-term relationships with
customers
Biopackaging: favorable competitive position
Industry Drivers
Global Paper Demand Evolution
Other Paper and Board
Tissue
Containerboard
Printing and Writing
Newsprint
Population Growth
Urbanization
Economic Growth
Rising disposable income
Increase in Product Quality
E-Commerce
Circular Economy
Intelligent Packaging
17Source: RIS. Figures in million tons
39 37 37 37 39 38 39 38 37 32 32 31 30 28 26 24 23 22 19
104 99 102 105 112 113 117 119 116 105 110 110 108 107 105 102 100 98 97
96 96 102 105 112 117
123 128 130 128
139 142 146 149 153 157 161 166 173
21 22 23
23 24 25
26 27 28
28 29 30 32 33 34 35 36 38 39
69 68 70
72
75 76 79
82 81
77
84 85 87 89 91 91 93 95 94
-
50
100
150
200
250
300
350
400
450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
329 322333
343363 369
383394 392
371
395 399 401 405 409 410418414 424
Dynamics of the Pulp Market
Source: Hawkins Wright 2018, CMPC
18
WORLD FIBER CONSUMPTIONRequired to produce
424 million tonsof Paper&Board
Recovered Paper
226 million tons
(53%)
Virgin Pulp
184 million tons
(43%)
Integrated
119 million tons
(65%)
Market Pulp
65 million tons
(35%)
BSKP
25million tons
BEKP
34 million tons
UKP
2 million tons
Mechanical
4 million tons
Dynamics of the Pulp Market
19
Source: Hawkins Wright 2018, CMPC
36%
27%
23%
11%
3%
Tissue
P&W
Board
Trader
4 milliontons
42%
21%
16%
11%
1%9%
Tissue
P&W
Packaging
Specialty
Market Pulp by Final Use Market Pulp by Final Client of CMPC
65 milliontons
Fluff
Mecánica
Specialty
Tissue Paper Demand Dynamics
Source: RISI, World Bank and CMPC as of 2018
20
Per capita annual consumption of tissue paper (in kilograms)(Countries where CMPC has operations are marked in green)
IndiaIndonesia
VietnamThailand
RussiaEcuadorColombia
China
China 2010
Peru Brazil
ArgentinaMexico
Croatia
Chile
Chile 2010
Costa Rica
Italy
France
PortugalSpain
Australia
Netherlands
New Zealand
UK
FinlandDenmark
AustriaSweden
Hong Kong
Canada
USA
USA 2010
0
5
10
15
20
25
30
0 10 20 30 40 50 60 70
Tis
sue
Pa
pe
r A
pp
. Co
nsu
mp
tio
n (
k/c
ap
ita
)
GDP per capita in US$'000
Strategy
CMPC’s Strategy
22
Strengthen the core
Grow in all business divisions
Focus on developing our people
Innovate in bio-economy and digitalization
• Continue implementing
productivity programs in all
our mills to increase asset
productivity (OEEs)
• Create a forestry fund in Brazil
to prepare for future organic
growth
• Evaluate growth alternatives
in Packaging while capturing
synergies
• Explore organic & inorganic
alternatives for main Softys
markets
•Develop the skills and talents
to form a high-performance
team with strong culture
•Develop new programs with a
focus on gender equality and
inclusion of people with
disabilities
• Strengthen CMPC’s position
as a key player in the bio-
economy
• Advance in digitalization and
Industry 4.0
• Leverage the innovation eco-
system to generate value
Sustainability
Prudent Financial Management
Pulp Strategy: Improving margins through operational excellence
Forest Base Expansion
Creation of a forestry fund in Brazil to
prepare for future organic growth
Operational Excellence Program
Plywood 1
+8%
Laja Mill 1
+12%
Pacifico Mill 1
Santa Fe Mill 2
L1:+10%
L2:+4%
Guaiba Mill 1
1 Increase in OEE´s production efficiency (%) between 2016 and 2019
2 Increase in OEE´s production efficiency (%) between 2016 and 2018 23
Debottleneck & Modernization Initiatives
Evaluation of debottleneck and modernization
initiatives in our pulp mills to increase production
in our mills
+1%
L1:+17%
L2:+14%
SEPAC Acquisition
The conditions to the acquisition of the Brazilian tissue and personal
care products company SEPAC were fulfilled. With this acquisition,
Softys has consolidated itself as the largest manufacturer and
distributor of this type of products in the Brazilian market, with an
installed capacity of 280 th tons of tissue paper.
Softys Strategy: Leading Latin American Producer
Profitability StrategySoftys
Leading markets
Strengthen our
leading position
Markets targeted for
expansion
Focus on Brazil and
Mexico to gain go-to-
market capabilities and
market share
68% 40% 52% 84%
60 thtons
Zárate tissue machine
1Q20
USD 130Million
60 thtons
Cañete tissue mill
1Q17
USD 140Million
24
Revenue Management
Procurement
Operational Excellence Program
Fixed Cost Reduction
Brand Innovation Approach
Source: CMPC
135 th tonsTissue Paper
Capacity
BRL 1,303Million
Transaction Price
175 M UnitsBaby Diapers
Capacity
Biopackaging Strategy: Expand business and gain efficiencies
25
Source: CMPC
Corrugated
Integrated all CMPC corrugated related businesses to capture synergies and improve operational
efficiencies
Increase productivity via a continuous improvement program (BEST)
Regain sales volumes and market share, optimizing prices
Increase productivity via a continuous improvement program (BEST)
Continue growing through the existing commercial platform
Increase our sack paper capacity - New conversion line in Peru (60 million sacks/year)
New market development as a result of the plastic bag ban in Chile - 3 new conversion lines in Chile
(115 million bags/year)
Boxboard
Paper Sacks
Corrugated
Prudent financial management: conservative debt profile
Debt by currency Debt by interest rate Debt by type
$3,898 m
Total debt
$3,283 m
Net debt
Debt breakdown
26
$615 m
Cash
Source: CMPC, as of December 2019, figures in USD.
Amortization Schedule (USD Million)
5.2 YearsAverage Term
4.2%
Average Rate486
159143 52 39 37 6
25
28505 514 610
66
1,089
194
511
187
648566
649
103
1,095
194
2020 2021 2022 2023 2024 2025 2026/2032 2033/2042
Bonds
Banks
BRL
USD
CLP
Others Variable rate
Fixed rate
BNDES
ECA Banks
Bonds
12%
75%
6%
7%
99%
1%
91%
3%4% 2%
Prudent Financial Management: Stable credit metrics and prudent financial policies
27
Net debt to EBITDA
Financial debt to equity
Interest coverage ratio
Cash1 / (18M Net Financial Interest + amortization)
Financial Policy CovenantSource: CMPC, as of December20191 Cash = cash & cash equivalents + undrawn committed lines of credit
2,5x
2,2x
1,8x1,6x 1,7x
2,0x
2,2x
2,8x
1,50x
2,00x
2,50x
3,00x
3,50x
4,00x
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
5,87x
7,02x7,66x
8,50x 8,35x
7,52x6,78x
6,09x
0,30x
1,30x
2,30x
3,30x
4,30x
5,30x
6,30x
7,30x
8,30x
9,30x
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
0,49x 0,48x 0,47x 0,47x 0,47x 0,45x 0,48x0,50x
0,30x
0,40x
0,50x
0,60x
0,70x
0,80x
0,90x
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
1,15x0,98x
1,90x
2,17x
1,80x
1,29x
1,86x
1,29x
0,30x
0,50x
0,70x
0,90x
1,10x
1,30x
1,50x
1,70x
1,90x
2,10x
2,30x
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
Appendix
1,930,000Tons capacity
BHKP / Guaiba Mill
1,496,000Tons capacity
BHKP / Santa Fe Mill
520,000Tons capacity
BSKP / Pacifico Mill
360,000Tons capacity
BSKP / Laja Mill
Pulp Division
$2,295Sales $1,150EBITDA $10,997Assets
1,148,500 hasForestry baseForestry assets*
Chile
470,000Planted has
Pine 64% Eucalyptus 32%
Brazil160,000
Planted has
Eucalyptus 100%
Argentina58,200
Planted has
Pine 100%
Sawn wood
960,000m3 capacity
Remanufactured wood190,000
m3 capacity
Plywood500,000
m3 capacity
Solid wood products* Pulp*
Chile
Brazil
*As of December 2019
29
LT
M
Dece
mb
er
20
19
(U
SD
Mill
ion
)
74%79%47%
Feminine care 1,386
Diapers 3,970
Softys Division
$2,095Sales $201EBITDA $2,636Assets
Main categories
Consumer tissue products
Tissue paper production capacity*
Personal Care productsProduction capacity*
Personal Careproducts
Away from home products
Chile
Brazil
Argentina
Mexico
Peru
Uruguay
Colombia
169,000
280,000
105,000
140,000
133,000
35,000
31,000
tons
30
LT
M D
ece
mb
er
20
19
(USD
Mill
ion
)
*As of December 2019
million units
million units
17%17%37%
Biopackaging Division
$915Sales $70EBITDA $1,540Assets
Production capacity
LT
M D
ece
mb
er
20
19
(USD
Mill
ion
)
Boxboard
530,000tons
Chile
Other papers
69,000
Chile
Sackraft
tons
52,000
Brazil
Printing and writing
Corrugated paper
260,000tons
Chile
Corrugated boxes
211,000tons
Chile
Molded pulp trays 396 million units
Chile
25,300 tons
31
Paper sacks 732 million sacks
Chile
Peru
Mexico
Argentina
28%
31%
34%
7%
*As of December 2019
6%16% 11%