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 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.
Investor Relations Contacts
Colomba Henríquezcolomba.henriquez@cmpc.cl+56 2 2441 2791
Blanca Lecarosblanca.lecaros@cmpc.cl+56 2 2441 2616
Juan José Ossuljuanjose.ossul@cmpc.cl+56 2 2441 2713
2
Sustainable Leader in P&P
Sustainable Leader in P&P
A sustainable company that produces solid wood products, pulp, paper, tissue and packaging products.
Controlled by the Matte Group, with 56% of the shares.
Founded in 1920 in Chile, with operations in 46 productive facilities across 8 Latin American countries and global sales to more than 45 countries.
CMPC in Numbers *
5,286
990
85
SALES
EBITDA
NET INCOME
USD million
USD million
USD million
2nd*
2nd
5th
MARKET PULP Global ProducerTISSUE Producer in LatAmPAPER SACKS Global Producer
1,287
19,349
19,641
FOREST ASSETS
CLIENTS
Th. Hectares
Average
DIRECT COLLABORATORS
At year end
* Hawkins Wright as of December, 2020. Source: CMPC, as of December, 2020.
Corporate Purpose- Create, Coexist, Conserve
325,995
551,708
Create the best solutions for the real needs of individuals.
AREAS FOR PROTECTION AND CONSERVATION
RECYCLED PAPER
USED
Metric tons
Coexist with our stakeholders, generating opportunities for mutual development
Hectares
75%
90.3%
WASTE RECOVERED
Conserve the environment, because we are fully aware that due to the nature of our raw materials and products, we are linked to nature.
FOREST ASSETS
CERTIFIED
417
66.5%
RENEWABLE
INDIGENOUS COMMUNITIES
Chile and Brazil
ENERGY
In line with the UN Global Compact Sustainable Development Goals:
19.5
> 4,800
CHILDREN BENEFITED
FACE MASKS
CMPC Foundation
Million units/year
6 years
4
Dow Jones Sustainability Index and FTSE4Good
GREEN FINANCING
Issuances
5
Source: CMPC, as of December, 2019.
C holders, generating |
At the core of the bioeconomy
Providing solutions from sustainable fibers
Providing solutions from sustainable fibers From certified high-yield plantations
1,189,860
760,005
90,3%
FOREST ASSETS
Hectares
PRODUCTIVE PLANTATIONS
CERTIFIED BY FSC AND PEFC
Hectares
Productive Plantations
Research and Development Initiatives
High growth rates
Eucalyptus m3ssc/ha/year
43
43
Continue with genetic improvements and intensive forest management to increase productivity and resilience of plantations.
E. Globulus E. Globulus
Iberian ChileAcacia MangiumEucalypus E. NitensBrazilChile
Increase in volume of fiber produced %
Radiata Pine
Eucalyptus1
Radiata Pine m3ssc/ha/year
20
11
2
4
5
RussiaScandinavia CanadaUSAChile
1975
2016-17
1994-96
2016-17
1 Eucalyptus in Brazil and Nitens in Chile Source: CMPC
8
Providing solutions from sustainable fibers With cost-competitiveness advantages
Chile*: 98 km
Brazil: 208 kmChile*: 125 km (by train)
Brazil: 260 km (by barges)
Strategically located pulp facilities with high environmental standards
* Average distance, considering the capacity of pulp mills Source: CMPC, Hawkins Wright, December 2020
9
Innovating for our clients´ needs at every stage of life
Softys, a leading company in Latin America with operations in 8 countries
14%
Source: CMPC, RISI, NRI Nielsen, as of December 2020
1 TM: Total Tissue Market in th. tons as of 2020
2 G: CAGR 2007-2017
Efficient logistics with wide coverage
18 production facilities
45% recycled paper
Tissue Paper
Away from Home
Suppliers
8 countries
Personal Care Products
Distribution network
Families and Homes
Away from
Home
Senior Citizens
Babies Women
C2: 3.5%
10
To satisfy our clients' packaging needs
A wide range of products that are biodegradable…
Boxboard
Corrugated
3% recycled paper
Sack Kraft
92% recycled paper
Food and BeverageConsumerPharmaceuticals
Goods
Building materials
Food & agricultural productsChemicals & minerals
RetailIndustrial
Produce
Salmon
100% recycled paper *
…and innovative
Boxboard with separators
Biodegradable disposable cups
Paper bags for pet foodPaper leaf bags
Fruit bagsFresh salmon boxes
Source: CMPC
* Without the handles
Creating value for all of our stakeholders
Creating value for all of our stakeholders Strengthening the leadership of our businesses
Pulp
Softys
Biopackaging
Forestry Expansion
Growth Markets
Innovation
In preparation for the future growth of our pulp operations
Gain market share
BrazilMexico
Capillarity Organic/inorganic growth Positive demand trendsProducts Processes Business models
Leadership Markets
Increasing profitability
Chile
Argentina
Peru Uruguay
Keep market share Expansions in line within the organic market growth
Commercial network Corrugated segment synergies
Initiatives to increase productivity and efficiency
60,000 tonsTissue machine
Debottlenecking in Pulp Modernization of solid wood production facilities
Zarate, Argentina
1Q20
Growth opportunities
Personal Care Products
Paper sacks growth strategy in the Americas
Growth in Personal Care
Source: CMPC
13
Creating value for all of our stakeholders
Through continuous improvement and operational excellence
Productivity and efficiency initiatives
Pulp
Implementation of Lean Management initiatives focused on promoting leadership, management systems, efficient processes and continuous improvement in pulp and paper mills.
2016
2019
2020*
Plywood Softwood Hardwood
61%80%66%
68%70%
81%81%
77%79%
Biopackaging
2017
2019
2020*
Boxboard
73%76%79%
Corrugated
Paper
79%67%80%
Softys**
2017
2019
2020*
Tissue Paper
71%75%
82%
*End of December 2020 ** Total Performance Management (TPM), measured as Efficiency in Assets Source: CMPC
Creating value for all of our stakeholders Through diversification
• High diversification which generates more stable operating income
• Domestic sales and exports represent 52% and 48% of our sales respectively
• The largest market represents less than 20% of our sales
• The largest client represents less than 10% of our sales
Source: CMPC. Figures in USD million for the LTM as of December 30, 2020. Figures do not include Holding and Intercompany Sales
Creating value for all of our stakeholders Through a prudent financial management
Financial Policies
Net debt to EBITDA 1
4,00x 3,50x
3,00x 2,50x 2,00x 1,50x
1Q20
3Q19
4Q19
Gross debt to equity 2
1Q20
2Q20
3Q20
4Q20
Interest coverage ratio 3
7,30x
6,30x
5,30x
4,30x
3,30x
2,30x
1,30x
0,30x
3Q19
Liquidity ratio 4
4Q19
2Q20
3Q20
4Q20
0,90x 0,80x 0,70x 0,60x
0,50x 0,40x 0,30x
4Q19
3Q19
Source: CMPC, as of December 31, 2020
1 Net Debt to Ebitda: Net debt / Ebitda
1Q20
2Q20
2 Gross debt to Equity: Total debt / (capital gain + Intangible assets + Equity Attributable to
Owners of Controlling Interest .
3 Interest Coverage Ratio: (EBITDA + LTM Financial Income + Dividends Received LTM) / -LTM Financial Expenses
4 Liquidity = Cash / Depreciation 18M and Net Financial Expenses 18M
3Q20
4Q20
2,30x
2,10x
1,90x
1,70x
1,50x
1,30x
1,10x
0,90x
0,70x
0,50x
0,30x
3Q19
Financial PolicyCovenant
4Q19
1Q20
2Q20
3Q20
4Q20
Creating value for all of our stakeholders Through innovation
Circular bioeconomy
Collaboration networks
Creating value and fostering sustainability at CMPC through bioeconomy solutions
Strengthen our relationships with start-ups, universities, and R&D centers to reinforce CMPC's global connectedness
Maximize raw material valueRecover byproductsContribute towards environmental goals
Digital transformation
Product Development
Lead CMPC to be a global leader in digital transformation and advanced analytics
Solutions that create value through unique qualities and encourage disruptive technological innovations
Source: CMPC
17
Creating value for all of our stakeholders
Through our commitment to society and the environment
Social
Our People
Supply Chain
Communities
Clients and Consumers
• Talent development
• Responsible procurement
• Community engagement
• Satisfaction
• Diversity and inclusion
• Health and safety
• Local and SME suppliers and contractors
• Local development
• Corporate citizenship
• Innovative and value-added products
• Education
Environmental
Forests
Water
Energy
Emissions
Waste
• Sustainable forest management
• Water efficiency
• Renewable energy
• Greenhouse gas emissions
• Water quality
• Efficiency
• Conservation
• Water stewardship
• Air quality and atmospheric emissions
• Waste and byproduct management
• Circular economy
Source: CMPC
19
Creating value for all of our stakeholders Corporate sustainability goals
Environmental
Social
Reduce by 50%(1) absolute greenhouse gas emissions(2) by 2030
Increase the share of women by 50%(3)
ZERO industrial waste to landfill by 2025
to 23.1% of the workforce by 2025
Increase by 50%(3) the share of women in management positions to 31.7% by 2025
Reach 2.5%(3)
persons with disability by 2025
Reduce by 25%(1) the industrial use of water per metric ton produced by 2025
Innovation
Add 100,000 hectares for conservation and protection by 2030(1)
Of process improvements by 2025 should come from digital innovation and data use.
Of reaching the concrete environmental goals should be achieved through innovative technology.
Of sales of all three business areas by 2025 should come from new and innovative products which we didn't offer as of January 1, 2020.
(1) Baseline 2018
(2) Scope 1 and 2
(3) Baseline 2019 Source: CMPC
19
30%
20%
10%
Creating value for all of our stakeholders With high corporate governance standards
Board of Directors
Corporate Governance Structure
• Elected every 3 years at the Annual Shareholder Meeting
• High level of industry experience
• Committee's structure with focus on strategic issues
Senior Management
• Controlling Group does not participate in management positions
• Variable annual bonus tied to strategic objectives and the fulfillment of profitability goals for each business area
Integrity and Compliance Program
• Culture of integrity that guides the daily actions of all collaborators
• High standard corporate policies approved by the Board and known to all
• Emphasis on the prevention of corruption and fair competition practices
* Source: CMPC
20
Appendix
I. Production Capacities
II. Industry Fundamentals
III. Consolidated Results
IV. Green Financing
21
I. Production Capacity*
Pulp
Forest Assets
Softys Tissue Paper
Biopackaging Boxboard
480,422
Pine 62%
320,460
Chile
Eucalyptus 30%
Planted Has.
259,000
Brazil Mexico
497,000
Tons
Chile
225,251
Brazil
Eucalyptus 87%
180,700
ChileTons
129,600
Argentina
Paper Sacks
54,332
Pine 100%
125,000
Argentina
32,300
Solid wood products 825,000
24,000
m3
500,000 195,000
Sawn wood Plywood Remanufactured wood
11,100
Peru Colombia Uruguay Ecuador
42,000 38,000 22,000 9,000
Tons
Peru Mexico Chile Argentina
Pulp
Personal Care Products
Corrugated
1,950,000
Brazil
1,440,000
Tons
Guaiba Mill BHKP Santa Fe Mill BHKP
M units
7,700
Diapers and Feminine Care
255,000
Chile Corrugated Paper
Chile
148,000
Tons
Corrugated boxes
525,000
Chile
Pacífico Mill BSKP
360,000
Chile
Laja Mill BSKP
21,000
Molded Pulp Trays
*As of December 2020
22
Global Paper Demand Evolution
Population Growth
Urbanization
Economic Growth
Rising disposable incomeIncrease in Product Quality
E-Commerce
Circular Economy
Intelligent Packaging
Other Paper and Board
Tissue
Containerboard
Printing and Writing
Newsprint
Source: RISI. Figures in million tons
450
400
350
300
250
200
150
100
50
-
2001
2000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Pulp Market Dynamics
Source: Hawkins Wright August 2020, CMPC
Pulp Market Dynamics
Market Pulp by Final Use
Fluff 11%
Specialty 17%
Packaging 9%
Tissue 38%
Source: Hawkins Wright December 2020, CMPC
Market Pulp by Final Client of CMPC
Traders
Packaging
6%
P&W 20%
20%
30%
P&W
Specialty
Tissue Paper Demand Dynamics
Per capita annual consumption of tissue paper (in kilograms)
(Countries where CMPC has operations are marked in green)
30
TissuePaperApp.Consumption(kg/capita)
25
20
15
10
5
China 2010Thailand Vietnam
India Indonesia
0
0
10
Source: RISI, World Bank and CMPC as of 2020
20
30
40
GDP per capita in USD '000
50
60
70
2020 sales
4Q19
Biopackaging
2020 EBITDA
Sales per business
3Q20
4Q20
Softys
EBITDA per business
12M19
12M20
Pulp
Operating Costs
4Q19
3Q20
4Q20
12M19
Administrative Expenses
12M20
Biopackaging
* Figures in USD million
Softys
Pulp
Net Income
Investments
Free Cash Flow
4Q19
3Q20
4Q20
12M19
12M20
4Q19
3Q20
4Q20
12M19
12M20
Gross Debt
Cash
Net Debt
4Q19
4Q19
* Figures in USD million
3Q20
4Q20
3Q20
4Q20
4Q19
3Q20
4Q20
Pulp
Sales
Softys Sales
Biopackaging Sales
4Q19
3Q20
4Q20
4Q19
3Q20
4Q20
4Q19
3Q20
4Q20
EBITDA
EBITDA
EBITDA
4Q19
3Q20 4Q20
4Q19
3Q20 4Q20
4Q19
3Q20 4Q20
Volumes
Volumes
Volumes
4Q19 3Q20 4Q20
4Q19 3Q20 4Q20 4Q20
- Pulpwood
77
43 62
- Chile
41
39 39
- Boxboard
107
106 118
- Sawing Logs - Sawn Wood
351
555 779
- Brazil
34
59 59
158
170 156
- Mexico
38
35 39
- Paper Bags
22
25 28
- Remanufactured Wood
45
56 57
- Argentina
26
28 27
- Other Papers
19
15 21
- Plywood
115
115 102
- Peru
26
24 24
- Corrugated Paper
21
31 30
- Others
117 112
- Uruguay
5
5 5
Total (th. m3)
1.055 1269
- Colombia
7
6 6
- Corrugated Boxes
37
32 40
BSKP BEKP
170 769
180 197
- Ecuador
3
2 2
- Molded Pulp Trays
3
5 3
735 872
Total Tissue Paper (Th. Tons)
198
198 200
Total Market Pulp (Th.
- Diapers
Tons)
P&W Guaiba (Th. Tons)
940 13
915 1069
- Feminine Care
12 27
- Others
Total Personal Care (M. Units)
975 337 338 1.665
1.102 1073
Total (Th. Tons)
201
213 239
372 336
374 384
1.848 1794
29
* Figures in USD million
4Q19 | 3Q20 | 4Q20 |
Financial Debt
Debt by interest rate
Debt by currency
Debt by type
2020
2021
2022
2023
2024
2025
2026/2032
2033/2042
*Figures in USD million
Source: CMPC, as of December 30, 2020
30
IV. Green Financing
4
GREEN FINANCING
Issuances
Use of proceeds
Environmental impact
124,670 ha
1,139 ha
58,774 ha
Area planted
Area restored in ChileArea designated for conservation in Chile
2,664,767
tCO2e/year
10.9 GWh/year
79 GWh/year
Captured
Energy savings
Renewable energy generation
20,453
28.86
tCO2e/year
tons/year
11,700 m2
Sustainable Management of Land Use
Emissions avoidedPM emissions avoidedGreen building area
Pollution Prevention & Control
Sustainable Water & Wastewater Management
8,898
7,414
5,491
Energy Efficiency
tons/year
tons/year
tons/year
Other
Water savingsCOD Pollution avoided
Waste recovered
31
Source: CMPC
USD730 | USD718 | 1 |
TOTAL ISSUANCES | ALLOCATED FUNDS | SUSTAINABILITY LINKED |
Million | Million | LOAN (SLL) |
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Empresas CMPC SA published this content on 08 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2021 21:34:08 UTC.