Empresas CMPC (CMPC) Investor Day 2024 summary

Strategic direction, vision, and business structure

• The 2030 strategy is built on pillars of sustainability, talent, customer centricity, competitiveness, and growth/innovation, with all projects and organizational changes aligned accordingly.

• Softys is positioned as a more autonomous, consumer-focused business, leading in tissue and hygiene in Latin America, with a dedicated segment and leadership.

• Major business units include biopackaging, pulp, and Softys, with a focus on expanding core and adjacent markets, especially in Latin America and beyond.

• The Natureza project is a $4.5 billion investment to add 2.5 million tons of pulp capacity by 2029, emphasizing cost, sustainability, and community integration.

• CMPC aims for international growth, operational excellence, and industry leadership in sustainability, with Softys executing a 5-pillar strategy for brands, go-to-market, transformation, sustainability, and culture.

Financial guidance, capital allocation, and operational excellence

• The Natureza project’s financial model assumes a long-term pulp price in the $600s per ton, with a conservative approach to profitability and risk.

• Dividend policy is expected to be reduced during the Natureza CapEx period, with a minimum payout of 30% as required by Chilean law.

• Financing for Natureza will combine internal cash flow and other sources, with a focus on maintaining credit ratings and financial resilience.

• Aggressive cost reduction initiatives are underway, with pulp production costs down 7% year-over-year, forestry costs down 12%, and boxboard raw materials reduced by 50%.

• Digitalization, predictive maintenance, and new expense control systems are being implemented to achieve top decile cost competitiveness globally.

Sustainability and innovation

• Sustainability is central, with goals to reduce water use by 25% by 2025 (59% achieved), zero waste to landfill by 2025, and cut Scope 1 and 2 emissions by 50% by 2030 (77% of target achieved).

• The company is committed to net zero by 2040, expanding native forest conservation by 100,000 hectares, and developing a Net Zero roadmap for scopes 1, 2, and 3.

• Achieved 74% sustainable debt, issued Latin America's first green bond linked to SDGs, and ranked as the world's most sustainable paper & forest products company by DJSI.

• $100 million innovation fund launched, with $20 million invested in 30+ R&D projects, startup investments, and over 150 innovation projects.

• The Natureza mill is designed for water efficiency, fossil fuel independence, advanced automation, and community engagement.