Empresas CMPC (CMPC) Corporate Presentation summary

Business overview and strategy

• CMPC is a leading global producer in pulp, tissue, and biopackaging, with sales of $7.8 billion and EBITDA of $1.27 billion (16.3% margin) as of June 2024.

• Holds top market positions: 4th in global market pulp, 1st in LatAm boxboard exports, and leading tissue and personal care brands in Latin America.

• Operates with a diversified portfolio across pulp, Softys (tissue and personal care), and biopackaging, serving over eight countries in Latin America.

• Strategic focus on growth, innovation, sustainability, competitiveness, and talent as part of its 2030 strategy.

• High diversification in sales by geography and customer base, with no single market or customer exceeding 20% and 15% of total sales, respectively.

Competitive advantages and operations

• Manages 856,000 hectares of forest assets, with 413,000 hectares dedicated to conservation and 99% certified by FSC and PEFC.

• Maintains low-cost, highly productive pulp mills strategically located in Chile and Brazil, supporting global competitiveness.

• Softys division leads in tissue and personal care products, with strong market shares and recognized brands across Latin America.

• Biopackaging division emphasizes circularity, using over 90% recycled fibers in corrugated products and serving diverse industries.

• Ongoing investments in modernization, capacity expansion, and acquisitions, including the BioCMPC and Natureza projects in Brazil and the Powell Valley acquisition in the US.

Financial performance and position

• 2Q24 sales reached $1.95 billion, with EBITDA of $295 million and net income of $127 million.

• Net debt stood at $4.76 billion, with a net debt/EBITDA ratio of 2.29x and liquidity ratio of 1.01x as of June 2024.

• Free cash flow was negative at -$176 million in 2Q24, reflecting ongoing investment activity.

• Financial debt is well-structured, with 71% in bonds, 95% in USD, and an average term of 5.41 years at a 4.82% average rate.

• Maintains strong interest coverage (5.34x) and gross debt to equity of 0.74x.