Empresas CMPC (CMPC) Investor Day 2024 summary

Strategic direction, vision, and business structure

• The 2030 strategy is built on five pillars: sustainability, talent, customer centricity, competitiveness, and growth/innovation, guiding all projects and organizational decisions.

• Softys is now a more autonomous business with a dedicated CEO, focusing on B2C and international expansion, supported by a detailed strategy presentation.

• Customer centricity is reinforced through joint ventures in the US and Europe, aiming for closer relationships and innovation with end customers.

• Investing in talent management, leadership development, and a culture of empowerment to support the 2030 vision, with high-potential talent pool increased to 30% in 2024.

• Employee engagement ratio improved to 3.1:1, doubling the share of top-quartile teams from 2023 to 2024.

Sustainability and social responsibility

• Sustainability is a core pillar, with initiatives like Bosque Vivo parks, green corridors, and a 26,000-hectare carbon sink in Aysén, plus over 70 biodiversity and conservation projects.

• Recognized as a global sustainability leader by the Dow Jones Sustainability Index, with 74% sustainable debt and Latin America's first green bond linked to SDGs.

• Environmental goals: reduce water use per ton by 25% by 2025 (59% achieved), zero waste to landfill by 2025, and 50% emissions reduction by 2030 (77% of target achieved).

• Net zero target set for 2040, ten years ahead of UN recommendations, with all products sourced from certified sustainable forests and a Net Zero roadmap for scopes 1, 2, and 3 in development.

• Social initiatives include educational partnerships in rural areas and the Softys Contigo program, providing water, sanitation, and hygiene education.

Operational excellence and cost competitiveness

• Targeting 10th percentile in global cost efficiency by 2030, with 10 concrete cost-reduction goals and formal competitiveness contracts across divisions.

• Achieved a 7% reduction in pulp production costs and $87 million in savings compared to 2023, with further targets to reach an 18% reduction; aggressive cost reduction in boxboard and forestry harvesting/transportation.

• Forestry costs are down 12% year-over-year, saving $38 million, with ongoing improvements in silviculture, operations, and transport.

• Digitalization and integration of operations, predictive maintenance, and new expense control systems are being implemented, including investments in digital tools and AI.

• SG&A reduction and process optimization are ongoing to enhance agility and efficiency.