Corporate Presentation -...

Corporate

Presentation

March 2018

Forward-lookingStatements

This presentation may contain forward-looking statements, thatshould be considered as good faith estimates. Such statements aresubject to risks and uncertainties outside of CMPC´s control thatcould cause the CMPC’s actual results to differ materially fromthose set forth in the forward-looking statements. These risksinclude in particular those described in CMPC’s FinancialStatements, Note 3 (“Gestión de Riesgos”).

Forward-looking statements speak only as of the date they aredelivered, CMPC undertake no obligation to publicly update orrevise them considering developments which differ from thoseanticipated.

I. CMPC

at a glance

Matte Group56%

Chilean and Foreign

Investors 34%

Chilean Pension Funds

10%

4

A global leader in P&P

CMPC is a P&P company, established in 1920, that produces solid wood products, pulp, paper

and packaging products and tissue in Latin America

International corporate rating BBB (stable) - Fitch

BBB- (negative) - S&PBaa3 (stable) - Moodys

Local ratingAA- (Fitch)AA (ICR)

CMPC’s Figures

Sales: $5,143 mm

EBITDA: $1,078 mm

EBITDA Margin: 21%

Net Debt: $3,198 mm

Assets: $14,951 mm

Shareholders’ Structure

Market capitalization of

US$9.7 billion as of February 28th, 2018

Figures for the LTM as of December, 2017 (US$ million)

As of December 31st, 2017. Source: CMPC

+1 million

hectáreas of land

33

productive

mills

+25 product lines

1,078

1990

2017

1,312

14,951

686

4,125

700

237 30843 628

AssetsUS$ million

PlantationsTh. hectares

Pulp

CapacityTh. tons

Tissue

CapacityTh. tons

RevenuesUS$ million

Successful growth history over the past decades

228

EBITDAUS$ million

5,143

5

Source: CMPC, RISI 15-year Forecast (2016-2031) & PPPC- Dec 2016

I

6

II. CMPC’s Value Proposal

CMPC’s Value Proposal

1. Industry

leader and well

diversifiedP&P producer

7

2. Low cost producer

with world-

class assets

4. Prudent

financial

management

5. Commitment

to sustainabledevelopment

3. Investments

in high growth

potential businesses

8

Large-scale vertically-integrated producer of

multiple products

Main Figures % of total sales% of consolidated

EBITDATotal capacity & Employees

Pu

lp d

ivis

ion

Sales: $2,676 mm

Sales 3rd parties: $2,406 mm

EBITDA: $798 mm

EBITDA margin: 30%

Forests

686 Th. has. planted

15.9 mm m3 harvested

Capacity

1.6 million m3/y solid wood

4.1 million tons/y pulp capacity

Employees

5,081 employees

Pap

er

div

isio

n

Sales: $843 mm

Sales 3rd parties: $814 mm

EBITDA: $86 mm

EBITDA margin: 10%

Capacity

430mm tons/y boxboard

270mm tons/y containerboard

220mm tons/y corrugated boxes

730mm units/y multiwall bags

370mm units/y molded fiber trays

Employees

3,430 employees

Tis

sue d

ivis

ion

Sales:$1,924 mm

Sales 3rd parties: $1,923 mm

EBITDA: $215 mm

EBITDA margin: 11%

Capacity

700 Th. tons/y

Employees

8,276 employees

$5,143 $1,078Total:

Source: CMPC. Figures in US$ million for the LTM as of December, 2017 / Figures do not include Holding and Intercompany Sales.

1

47% 67%

37%19%

16%

10%

9

Geographic & productdiversityprovidesflexibility & cash flowstability

Source: CMPC. Figures in US$ million for the LTM as of Diciembre, 2017 / Figures do not include Holding and Intercompany Sales.

1

10

Pulp production in low-cost, high-yield geographies

2

Source: CMPC

Radiata PineAverage softwood growth rate

(m3ssc/ha/year)

EucalyptusAverage hardwood growth rate

(m3ssc/ha/year)

CMPC has a high quality

and sustainable forestry

base with fast growth cycles

which optimizes capital

invested in land, reduces

average distance to mills

and increases gains due to

genetic and sylvicultural

practices

163 Km.

93 Km.

119 Km.

208 Km.

80 Km.

93 Km.

99 Km.

260 Km.

(by train)

(by train)

(by train)

(by barges)

Laja

Guaíba

Pacífico

Santa Fe

11

2023

43 43

E. G

lob

ulu

s

Ibe

ria

n

E. G

lob

ulu

s

Ch

ile

Aca

cia

Ma

ng

ium

Eu

ca

lyp

tus

Bra

zil

E. N

ite

ns C

hile

2 4 511

19

Ru

ssia

Sca

nd

ina

via

Ca

na

da

US

A

Ch

ile

0

100

200

300

400

500

600

700

0 5,000 10,000 15,000 20,000 25,000

0

100

200

300

400

500

600

700

0 5,000 10,000 15,000 20,000 25,000 30,000

11

Pulp production in low-cost, high-yield geographies

2

BSKP CASH COST US$/ton cif China

Th. metrics Tons

CMPC’s pulp facilities

BHKP CASH COST US$/ton cif China

Th. metrics Tons

CMPC’s pulp facilities

Source: CMPC and Hawkins Wright as of December 2017

Unique region-wide tissue operation More than 40 years of expertise in the LatAm consumer

business

Top 5 tissue and sanitary products producer in every

major Latin American market

Range of brands & products to take advantage of

economic cycles

Focused on growth in key markets and underpenetrated

sanitary product markets

Steady expanding capacity, combination of organic &

inorganic growthChile

Brazil

Colombia

Mexico

44%

83%

9%9%

57%

11%

23%

Peru

Ecuador

Argentina

Uruguay

70%

CMPC’s Tissue paper

market share

12Source: CMPC

CMPC’s baby diaper

market share4%

24%

70%

6%

24%

3%

12%

31%

2

Renegotiation

of electriccontracts

Renegotiation

of logisticcontracts

Operational productivity and efficiency programs in all segments of CMPC

13

Productivity optimization

program

Sale of real-

estate land

Working

capital reduction

2

Global paper demand

evolution

Source: CMPC and RISI

14

Mill

ion

to

ns

3

39 37 37 37 39 38 39 38 37 32 32 31 30 28 26 24 23

104 99 102 105 112 113 117 119 116 105 110 110 108 107 105 102 100

96 96 102 105 112 117 123 129 131

129 139 143 146 150 153 157 159

21 22 23 23 24 25

26 27 28 28

29 30 32 33 34 35 36 69 68 70

72 75 76

79 82 81

77 84 85 87 88 91 92 94

-

50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Newsprint Printing & Writing Containerboard Tissue Other Paper and Board

329 322333

343

363 369384

395 392

371

395 400 402 406 409 411 412

BHKP32

BSKP25

Mec5

UKP2

425 million tons

of total fibers64 million tons

of market pulp32 million tons

of BHKP

FIBER WORLD CONSUMPTION

required to produce 411 million tons of

Paper&Board

VIRGIN FIBER

used to produce Paper&Board

(M tons)

MARKET PULP

consumed to manufacture

Paper&Board (M tons)

Dynamics of the pulp market

Source: CMPC, Hawkins Wright and RISI15

Recover Paper244 million tons

(57%)

Virgin

Pulp181 million

tons

(43%)

Integrated

117

million tons

(65%)

Market

Pulp

64 million

tons

(35%)

Sulphite

3

16

Tissue Paper Demand Dynamics

IndiaPhilippines

IndonesiaVietnam

Thailand

RussiaEcuador

Colombia

MalaysiaChinaPeru

VenezuelaBrazil

Argentina

Mexico

Taiwan

CroatiaHungary

ChileCosta Rica Italy FrancePortugalSpain Australia

NetherlandsNew ZealandIsrael

IrelandUKFinland Denmark

SwitzerlandGermanyAustria

Sweden

Hong KongCanada

USA

0

5

10

15

20

25

0 5 10 15 20 25 30 35 40 45 50

Source: CMPC as of December 2015

Tiss

ue

Pap

erA

pp

.Co

nsu

mp

tio

n(k

/hab

)

GDP per capita in US$’000

Per capita annual consumption of tissue paper (in kilograms)

(Countries in green are CMPC operation countries) DEMAND DRIVERS

Population Growth

& Urbanization

Economic Growth

Increase in AfH and

non-higienic paper

categories

Product Quality

Increase in Market

Share & Product

Consumption

3

17

Packaging Paper

Demand Dynamics

3

Macroeconomics & Demographic

- Population growth

- Urbanization

- Rising disposable income

E-commerce

Sustainability

- Circular economy

- New packaging materials

- Packaging redesign

Digitalization

- Intelligent packaging

- Technology integration

Debt breakdown

18

Debt by currency Debt by interest rate Debt by type

Note: Figures in US$ million as of December 2017

Strong balance sheet & conservative debt profile

Amortization schedule

Total debt: $4,031mm

Net debt: $3,198mm

4

Banks7%

Bonds74%

BNDES12%

ECA7%

Fixed Rate98%

Variable Rate2%

CLP3%

USD89%

BRL4%

Other4%

-

499

- -

993

1,280

197 224

205

149 149

26934

2018 2019 2020 2021 2022/2023 2024/2030 2031/2040

Bonds Banks Interests

19Source: CMPC

Interest coverage ratioNet Debt to EBITDA

Stable credit metrics and prudent financial

policies

Cash / (18M Net Financial Interest + Amortizations)Financial Debt to Equity

Covenant Financial Policy

4

3.2x3.4x

3.7x 3.8x

3.4x

3.1x 3.0x

2.0x

2.5x

3.0x

3.5x

4.0x

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

5.66x5.19x

4.66x 4.41x 4.63x4.89x 5.00x

0.30x

1.30x

2.30x

3.30x

4.30x

5.30x

6.30x

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

0.54x 0.53x 0.53x 0.53x0.59x 0.57x

0.51x

0.30x

0.40x

0.50x

0.60x

0.70x

0.80x

0.90x

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

1.01x

0.53x 0.54x0.59x

1.08x

1.23x

0.73x

0.30x

0.50x

0.70x

0.90x

1.10x

1.30x

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

20Source: CMPC

Positive free cash flow driving deleverage

LTM Free Cash Flow Breakdown (Dec. 2017)Free Cash Flow Evolution

4

-48

10

62

111122

177

18

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

1,078 -498 -5

-193

-69

+116

429

EBITDA Capex Dividends Net

Financial

Expenses

Income

Tax

Working

Capital

Variation

Free Cash

Flow

Commitment to Sustainable Development

Energy Efficiency Gold Seal granted by

the Energy Ministry of

Chile and the Agency

for Energy Efficiency

21

Member of the

FTSE4GoodIndex, for third

consecutive year

Member of the

DJSI Chile, for

third consecutive

year

Member of the new

DJSI Mila

First Chilean

Company to issue

a Green Bond

5

22

CMPC’s Corporate Governance

High corporate governance standards, in line with international best practices to continue growing

and generating value to all our stakeholders in a responsible and sustainable way.

Board of

Directors

Directors

Committee

Audit

Committee

Financial

Risk

Committee

Corporate

Affairs

Committee

Ethics and

Compliance

Committee

Chief Legal

Officer

Compliance

Division

Internal

Audit

Each Board of Directors Committee counts with a functioning protocol which defines its members,

attributions and topics addressed.

3 Directors, 3 Directors 3 Directors 2 Directors 2 Directors

9 members,

2 independent

5

Appendix: Business divisions

24

Pulp division

Chile

Planted: 471,000 has.

64% Pine, 32% Eucalyptus

Brazil


~100% Eucalyptus

Argentina


~ 100% Pine

FORESTRY ASSETS*

SOLID WOOD PRODUCTS*

PULP*

Sawn Wood

Capacity: 960,000 m3

Remanufactured Wood


Plywood


Chile

BSKP - Laja Mill

Capacity: 364,000 tons

BSKP - Pacifico Mill

Capacity: 500,000 tons

BEKP - Santa Fe Mill

Capacity: 1,496,000 tons

Brazil

BEKP - Guaíba Mill

Capacity: 1,765,000 tons

24

Forestry base: 1,150,000 has.

$2,406 $10.727

LT

M D

ec-1

7

($U

S M

illi

on

)

SALES EBITDA

$798

ASSETS

*As of December 2017

47% 67% 73%

25

Consumer tissue products

Sanitary products

Away from home products

Chile 159,000 tons

Brazil 131,000 tons

Argentina 99,000 tons

Mexico 123,000 tons

Peru 125,000 tons

Uruguay 34,000 tons

Colombia 28,000 tons

TISSUE PAPER PRODUCTION CAPACITY*

MAIN CATEGORIES SANITARY PRODUCTSPRODUCTION CAPACITY*

Diapers: 3,970 M units

Feminine Care: 1,386 M

units

Tissue division

$1,923 $215 $2,365SALES EBITDA ASSETS

LT

M D

ec-1

7

($U

S M

illi

on

)


37%19% 17%

26

BOXBOARD

PAPER BAGS

OTHER PAPERS CORRUGATED PAPER

CORRUGATED BOXES

MOLDED PULP TRAYS

429,000 tons

Chile

106,500 tons

672 MM bags

Chile: ~31%

Peru: ~ 34%

Mexico: ~ 25%

Argentina: ~ 10%

80,000 tons

Chile (Sackraft)

60,000 tons

Brazil (Printing & Writing)

316,000 tons

Chile

240,000 tons

Chile

21,200 tons

380 MM units

Chile

Paper division

PRODUCTION CAPACITY*

$814 $86 $1,472SALES EBITDA ASSETS

LT

M D

ec-1

7

($U

S M

illi

on

)


16%

10% 10%

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