company overview - inversionescmpc.cl€¦ · •2007: acquisition of drypers andina in colombia
TRANSCRIPT
3
CMPC is one of the most important players in the P&P industry
CMPC participates in many segments of the
P&P business; producing pulp, paper and
other forest products.
One of the highest rated credits in the industry
(BBB+) by S&P and Fitch.
Market capitalization of US$9.7 billion as of
February 29th, 2012, among he highest of the
P&P industry.
Controlled by the Matte Family, one of Chile’s
leading economic groups.
Figures for 2011 (MUS$):
• Sales: 4,797
• EBITDA: 1,078
• Net Income: 494
• Assets 13,294
• Net Debt: 2,451
P&P companies by market cap (BUS$)*
Shareholders’ Structure*
*As of February 29th, 2012. Source: Bloomberg
*As of December 31st, 2011. Source: CMPC
Local Investors
24,2%
Matte Group55,4%
Foreign Investors
8,9%
Chilean Pension
Funds11,4%
15,4
12,6
9,7
6,2
4,2
2,2
IP SCA CMPC Stora Enso Fibria Suzano
4
1990 - 1995 • 1990: Beginning of the eucalyptus plantation program in Chile
• 1991: Acquisition of Química Estrella San Luis in Argentina, becoming CMPC s first foreign investment
• 1993: JV Prosan with Procter & Gamble
• 1994: Acquisition of IPUSA in Uruguay
1995 - 2000 • 1996: Acquisition of La Papelera del Plata
• 1997: Acquisition of 100% of Santa Fe and Pacífico mills
• 1998: Maule boxboard mill starts up its operations
• 1998: Sale of Prosan to Procter & Gamble
2000 – 2006 • 2003: Acquisition of Monteáguila, with plantations of eucalyptus
• 2006: Acquisition of assets of Forestal Copihue
• 2006: Santa Fe II mill starts up its operations
• 2006: Acquisition of ABSORMEX in Mexico
2006 – Nowadays • 2007: Acquisition of Drypers Andina in Colombia
• 2007: Plywood mill starts up its operations
• 2009: Acquisition of Melhoramentos in Brazil
• 2009: Acquisition of Guaíba for US$1.4 billions
CMPC has expanded significantly in the region over the last two decades
Business
Forestry and Pulp
Papers and Tissue
5
Nowadays, CMPC is…
2° largest producer
of sawn wood in
Latin America
2° largest producer
of remanufactured
wood in Latin
America
5° largest producer
of market pulp
globally
2° largest
producer of
tissue paper in
Latin America and
8° globally
2° largest producer
of news paper in
Latin America
2° largest producer
of boxboard in
Latin America
2° largest producer
of paper bags in
Latin America and
7° globally
1° credit rating
(BBB+) of the P&P
industry worldwide
2° largest market
cap of the P&P
industry in Latin
America and 4°
globally
Only producer in
the world of NSKP
in Chile and NEKP
in Chile and Brazil
Source: CMPC
6
Plywood
A balanced growth in all business segments provides CMPC a diversified
revenue mix
10%
31%
17%
33%
8%
Source: CMPC. Figures in US$ million for the LTM as of December 2011 / Figures do not include Holding and Intercompany Sales and EBITDA
1.1 MM tons/y
500,000 tons/y
Main Figures % of third parties
total sales
% of consolidated
EBITDA
Total capacity &
Employees
Fo
res
try
Pu
lp
Pap
er
Tis
su
e
Pa
pe
r
Pro
du
cts
Sales: 778 Sales 3rd parties: 486 EBITDA: 135 EBITDA margin: 17%
1,038 Th. has 680 Th. has. planted
12.3 MM m3/y harvested
1,969 employees
Sales: 1,757 Sales 3rd parties: 1,496 EBITDA: 573 EBITDA margin: 33%
2.6 MM tons/y 1,778 employees
Sales: 965 Sales 3rd parties: 801 EBITDA: 174 EBITDA margin: 18%
1.1 MM tons/y 1,791 employees
Sales: 1,610 Sales 3rd parties: 1,606 EBITDA: 175 EBITDA margin: 11%
570,000 tons/y 7,337 employees
Sales: 432 Sales 3rd parties: 407 EBITDA: 33 EBITDA margin: 8%
375,000 tons/y 2,197 employees
13%
16%
53%
16%
3%
7
Plywood
Product and geographic diversification provides flexibility
Source: CMPC. Figures in US$ million for the LTM as of December 2011.
9
Plywood
Forestry Division: the root of CMPC’s competitive advantage
Forestry
Chile:
730,335 has.
504,406 planted has.
Brazil:
213,104 has.
112,689 planted has.
Argentina:
94,283 has.
62,821 planted has.
Chile:
3 Sawmills:
Bucalemu,
Mulchén and
Nacimiento
Total capacity:
1,0 MM m3/y
Strategically located high quality timber assets and state of
the art facilities
Sawn wood
Chile:
2 Remanufacturing
plants:
Coronel and Los
Ángeles
Total capacity:
190 Th. m3/y
Ramanufactured
wood
Chile: • 1 Plywood mill:
Mininco
Total capacity:
240 Th. m3/y
Plywood
Source: CMPC
10
5,4 5,7 5,2 5,26,6
3,1 3,33,2
6,0
5,7
2007 2008 2009 2010 2011
Pine Eucaliptus
Forestry Division: the root of CMPC’s competitive advantage
What’s ahead…
• Chile and Brazil: acquisition of land, to increase CMPC’s forestry
base.
• New 240,000 m3/yr plywood line in Mininco, starting in 2013.
Key facts
• 100% planted and certified forests.
• Genetic and silvicultural practices / forest management to
enhance yield.
• Faster growth cycle .
• Proximity of forests to industrial facilities and ports.
• Young and growing forestry base
— Average age of CMPC’s Pine Forests: 13.4 years
— Average age of CMPC’s Eucalyptus Forests: 4.7 years
— Average ratio Planting / Harvesting: 1.4 times
Harvesting (million m3)
1.4x
Harvesting vs. Planting
21 2018
2528
3229
26
3735
2007 2008 2009 2010 2011
Harvest Plantations
Source: CMPC
Source: CMPC
11
BSKP1 Supply Curve (US$/ton)
Pulp Division: CMPC has one of the lowest cash costs of the pulp industry
Key facts
• First class assets.
• Strategic locations (mills near to forests and ports).
• One of the world’s lowest cost producer .
• Sales diversification.
• ISO, OHSAS certifications.
What’s ahead…
• Chile: revamping of Laja mill (110,000 tons of additional BSKP
capacity), starting in 2Q12.
• Debottlenecking of the Santa Fe II mill (200,000 tons of
additional BEKP capacity), starting in 1Q12.
• New turbo generators at the Laja and Santa Fe II mills.
• Brazil: Guaíba II line (1.3 million tons of additional BEKP
capacity), to be approved by the board.
BHKP2 Supply Curve (US$/ton)
Source: CMPC and Hawkins Wright as of February 2012
(1) BSKP: Bleached Softwood Kraft Pulp
(2) BHKP: Bleached Hardwood Kraft Pulp
CMPC’s pulp facilities
CMPC’s pulp facilities
12
Plywood
Pulp Division: CMPC has one of the lowest cash costs of the pulp industry
Chile
2 mills:
Pacífico (Pine)
Laja (Pine)
Total Capacity : 780 Th. tons/y
(890 Th. tons/y after April
2012)
Production capacity and distance from mills to forests and
ports
Softwood
Chile
2 mills:
Santa Fe I (Eucalyptus)
Santa Fe II (Eucalyptus)
Brazil
1 mill:
Riograndense
(Eucalyptus)
Total Capacity: 1.8 M tons/y
Hardwood
Santa Fe
Laja
Pacífico 163 Km.
93 Km.
119 Km.
Pacífico
Laja
Riograndense 80 Km.
80 Km.
93 Km.
Santa Fe 99 Km.
Riograndense 260 Km.
(By train)
(By train)
(By train)
(By barges)
CMPC’s average distance from… to…
13
Plywood
1
On December 15th 2009, Fibria transferred CMPC the ownership of a group of assets known as the Riograndense Unit for a total price of US$1,370 million. The
Riograndense Unit includes:
Sizable entry to Brazil.
Strategic location, complementary to existing facilities, to serve customers worldwide.
Ability to reconfigure sales, delivery and increase customers.
Ability to easily increase production to 1.75 million tons of pulp in the near future.
Potential to replicate CMPC Chile in one of the largest and most dynamic economies in the world.
Substantial forestry base and sylvicultural know-how.
Opportunity to further improve CMPC’s low cost producer status.
The Riograndense acquisition: the biggest project in CMPC’s History
Pulp mill with annual
production capacity of approx
450,000 tons
Paper mill with annual
production capacity of approx
60,000 tons
Approximately 212,000
hectares of land of which
125,000 are plantable
Licenses and authorizations to
execute an expansion project for the
pulp mill and increase its annual
capacity to app 1.75 mm tons
2 3 4
Riograndense
14
Plywood
Paper Division: strategically focused on niche paper grades
Chile
2 mills:
Maule
Valdivia
Total Capacity :
430,000 tons/y
Boxboard
Chile
1 mill:
Puente Alto
Total Capacity:
340,000 tons/y
Corrugated Paper
Chile
1 mill:
Nacimiento
Total Capacity:
200,000 tons/y
Newsprint
Chile
1 mill:
Laja
Brazil
1 mill:
Riograndense
Total Capacity:
130,000 tons/y
Other papers
Most important paper
distributor in Chile,
with 53% of total
market share
Edipac
Key facts
Well integrated with the forest and pulp divisions.
State of art technology & low cost producer .
Extensive use of recycled paper.
Sales focused on developing countries.
Geographical Sales Breakdown (Th. Tons)
12%22%
61%
88%78%
39%
Boxboard Newsprint Packaging
Local Sales Export Sales
Source: CMPC
15
Plywood
Tissue Division: CMPC is a leading Latin American player
Strong market share throughout the region
Market Share:
Capacity: 89,000 tons/yr
5%
Mexico (Since 2006)
Colombia (Since 2007)
Market Share:
Capacity: 125,000 tons/yr
11%
Brazil (Since 2009)
Market Share:
Capacity: 37,000 tons/yr 87%
Market Share:
Only Conversion Process
23%
Ecuador (Since 2009)
Market Share:
Capacity: 63,000 tons/yr
56%
Peru (Since 1996)
Market Share:
Capacity: 127,000 tons/yr
79%
Chile (since 1980)
Market Share:
Capacity: 106,000 tons/yr
48%
Argentina (Since 1991)
Market Share: 11%
Capacity: 22,000 tons/yr
Uruguay (Since 1994)
Tissue products
Baby & Adult
diapers
Feminine care
Away from
Home products
16
Tissue Division: CMPC is a leading Latin American player
Key facts
• One of the largest tissue company in Latin America.
• Strong branding.
• Broad market segmentation and extensive distribution network.
• High growth opportunities.
• Flexible product mix and complete line of tissue products.
What’s ahead…
• Chile: New Tissue Paper Machine (50,000 tons/y) in 1H13. Tissue Capacity Evolution (000’s of Tons)
Tissue per Capita Consumption
India
ChinaEcuador
PeruColombia
BrazilUruguayMexicoChile
Argentina
Portugal
Spain
France
Japan
CanadaSweden
USA
Switzerland
0
5
10
15
20
25
30
0 10 20 30 40 50
Tiss
ue P
aper
App
. Con
s (k
/hab
)
GNI per capita, PPP (US$)
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011
Brazil
Colombia
Mexico
Uruguay
Peru
Argentina
Chile
Source: CMPC
Source: CMPC
17
Plywood
Paper Products Division: Local sales mainly oriented to export industries
Chile
4 mills:
Buin
Quilicura
Til Til
Osorno
Total Capacity : 287,000
tons/y
Corrugated boxes
Chile
1 mill:
Chillán
Argentina
1 mill:
Hinojo
Peru
1 mill:
Lima
Mexico
1 mill:
Guadalajara
Total Capacity: 70,000
tons/y
Paper bags
Chile
1 mill:
Puente Alto
Total Capacity: 18,000
tons/y
Molded pulp trays
Key drivers
Market leader in corrugated boxes and
multiwall bags markets in Chile.
Well diversified sales among different
segments of the market in corrugated
boxes.
Manufacturing process benefits from
backward integration.
Although a significant fraction of the sales
of this business area are local, CMPC
Paper Products is also expanding its
exports.
What’s ahead…
Mexico: new 40,000 tons paper bags mill
in Guadalajara, starting 2013.
19
Plywood
Financial Summary
4Q10 2010 3Q11 4Q11 2011 QoQ% YoY%
Sales 1.150 4.219 1.228 1.129 4.797 -8% -2%
Operating Costs (706) (2.572) (794) (795) (3.120) 0% 13%
Other Operating Expenses (143) (509) (155) (154) (598) -1% 7%0
EBITDA 302 1.138 278 180 1.078 -35% -40%
Depreciation & Stumpage (106) (387) (104) (105) (413) 1% -1%
Change in Net Value of Biological Assets (11) 59 23 50 110 114% -564%0
Operating Income 184 810 198 125 775 -37% -32%0
Financial Costs (34) (135) (42) (42) (163) -1% 22%
Other Non Operational Items 32 (36) (46) (10) (118) -79% -130%0
Net Income 182 640 109 73 494 -33% -60%
EBITDA Margin 26% 27% 23% 16% 22% -7% -42%
Total Assets 12.876 12.876 13.181 13.181 13.181 0% 2%
Total Liabilities 5.055 5.055 5.377 5.377 5.377 0% 6%
Shareholder's Equity 7.822 7.822 7.804 7.804 7.804 0% 0%
4Q11
20
267
115
248
-
494 495
167
291
48
99
285
303
244 160
2012 2013 2014 2015 2016 2018 2019 2027 2030
Bonds Banks Revolving
CMPC’s debt description as of December 2011
Last financial transactions:
• MUS$500 senior term notes (January 2011):
7 year bullet bond: for MUS$500 @ CT10 + 220 bps
• MUS$600 syndicated loan (October 2011):
5 year MUS$400 credit at Libor + 65 bps
3 year MUS$200 committed line at Libor + 70 bps
Debt profile:
• Average term : 5.8 years
• Average cost : 4.6%
• Composition:
40% banks / 60% Bonds
• Debt breakdown by currencies:
17% UF / 77% US$ / 6% Other currencies
Debt breakdown by interest rate (%)
Amortization schedule
86% 88%74% 74%
84%
14% 12%26% 26%
16%
2007 2008 2009 2010 2011
Fixed Rate Floating Rate
Source: CMPC
Source: CMPC
21
Plywood
Main financial metrics
*Figures as of 2007 and 2008 are under Chilean GAAPs. Figures for 2009, 2010 and 2011 are under the IFRS accounting standard.
Debt evolution (US$ million)*
1.362 1.3492.130 2.185 2.452
167 229
761 650822
2007 2008 2009 2010 2011
Net debt Cash
0,28x
0,33x
0,42x
0,37x
0,43x
2007 2008 2009 2010 2011
Net debt / EBITDA*
1,5x1,7x
3,3x
1,9x2,3x
2007 2008 2009 2010 2011
EBITDA / interest expenses*
11,9x
10,1x
6,3x
8,6x6,9x
2007 2008 2009 2010 2011
Financial debt / equity*
Source: CMPC
Source: CMPC Source: CMPC
Source: CMPC
22
Plywood
CMPC has the one of the highest credit ratings in the industry globally
Country:
S&P Rating: BBB+ BBB+ BBB BBB BB BB+
EBITDA (US$ millions): 1,078 2,570 1,307 3,651 1,328 614
Net Debt (US$ millions): 2,451 5,248 2,897 5,914 4,972 1,468
International
Paper
.
Issuer:
Net Debt/EBITDA: 2.3x 2.1x 2.1x 1.6x 4,2x 2,6x
Equity: 7,848 9,680 6,939 6,960 7,803 2,661
Source: Bloomberg. Figures for the LTM as of December 2011 for CMPC, Arauco, IP, Klabin and Fibria. Figures for the LTM as of September 2011 for SCA.
23
Plywood
CMPC: Blue chip in the Santiago Stock Exchange
CMPC is listed at the Santiago Stock
Exchange since 1922
CMPC has 2,226 million of common shares
CMPC’s stock ranked eighth in the IPSA-40
Index, representing 5.1% of the indicator as
of December, 2011
CMPC Daily Stock Price (CLP$)
CMPC Daily Traded Volume (N° of Shares) Other Chilean Companies Market Cap (BUS$)
-
500
1.000
1.500
2.000
2.500
3.000
03-2007 11-2007 07-2008 03-2009 11-2009 07-2010 03-2011 11-2011
24,022,2
14,9 14,7 14,5 13,9
9,79,3
5,14,7
0,8
0
5
10
15
20
25
30
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
35.000.000
40.000.000
45.000.000
50.000.000
03-2007 03-2008 03-2009 03-2010 03-2011 03-2012
24
Investment Highlights
CMPC is:
World class company in the industry.
Low cost producer in most of our product lines.
Products and geographical diversification allows strong cash.
generation in spite of economic and price cycles.
One of the highest rated credits in the industry.
Committed to sustainable growth.
Strong balance sheet prepared for growth opportunities.
Experienced management and strong shareholders.
25
Disclaimer
The foregoing material is a presentation of general background information about CMPC’s activities as of the date of the presentation. It is
information given in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or
potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These
should be considered, with or without professional advice, when deciding if an investment is appropriate.
Forward Looking Statements
This presentation contains statements that constitute “forward-looking statements” within the meaning of securities laws of applicable
jurisdictions. Examples of these forward-looking statements include, but are not limited to (i) statements regarding our future results of
operations and financial condition, (ii) statements of plans, objectives or goals, and (iii) statements of assumptions underlying those
statements. Words such as “may,” “will,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” continue”, “probability,” “risk,” and
other similar words are intended to identify forward-looking statements but are not the exclusive means of identifying those statements. By
their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the
predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers that a number of
important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements.