Interim report
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Earnings Release Fourth Quarter 2024
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2 EARNINGS CALL Fecha: 31 de enero, 2025 Date: 10:00 A.M. Santiago Webcast: Link Id (Zoom): 819 3020 8298 INVESTOR RELATIONS Claudia Cavada claudia.cavada@cmpc.com Daniela Figueroa daniela.figueroa@cmpc.com ir.cmpc.com ABOUT CMPC CONTENT QUARTER SUMMARY ........................................................... 3 RELEVANT EVENTS .............................................................. 4 SUBSEQUENT EVENTS ......................................................... 5 REVIEW OF CONSOLIDATED RESULTS ............................... 6 SALES .................................................................................... 6 OPERATING COSTS .............................................................. 8 OTHER OPERATING EXPENSES ........................................... 8 EBITDA .................................................................................. 9 FINANCIAL RESULT ............................................................ 10 NET INCOME (LOSS) .......................................................... 11 CASH FLOW ANALISIS ....................................................... 12 FREE CASH FLOW ............................................................... 12 INVESTMENTS .................................................................... 13 BALANCE SHEET ANALYSIS .............................................. 13 FINANCIAL DEBT ................................................................ 14 FINANCIAL RATIOS ............................................................ 15 PROFITABILITY AND DEBT RATIOS .................................. 16 RESULTS BY BUSINESS ..................................................... 17 PULP .................................................................................... 17 SOFTYS ............................................................................... 21 BIOPACKAGING .................................................................. 22 SUSTAINABILITY ................................................................ 23 RISK MANAGEMENT .......................................................... 24 FORWARD LOOKING STATEMENTS .................................. 24 FINANCIAL TABLES............................................................. 25 GLOSSARY .......................................................................... 30 CMPC is a multinational company that manufactures wood, pulp, packaging, and paper, with 104 years of history. This report consolidates information and figures of CMPC and a wholly owned subsidiary, Softys, which produces tissue paper and personal care products. The company’s core, the forest, natural fiber, and its products are essential to contribute to a sustainable society. CMPC´s corporate purpose - TOGETHER WE MAKE NATURAL FIBER FOR A BETTER FUTURE - motivates and guides more than 25,000 direct employees who wo rk in industrial and forestry operations in nine American countries: Chile, Brazil, Argentina, Mexico, United States, Peru, Colombia, Uruguay, and Ecuador as well as in commercial offices in Germany, Finland, and China.
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3 QUARTER SUMMARY1 Consolidated Sales were USD1,919 million in 4Q24, down 3% from USD1,984 million in 3Q24. This reflects lower revenue in the Pulp and Softys businesses and an increase in Biopackaging revenue. EBITDA was USD332 million, down 23% QoQ, reflecting lower results in the Pulp business mainly due to a lower average sales price. In addition, there were smaller decreases in Softys and Biopackaging. Consolidated EBITDA margin was 17.3% in 4Q24, compared to 21.8% in 3Q24. Net Income was USD10 million compared to USD147 million in 3Q24. The lower figure is mostly explained by lower EBITDA generation and a higher deferred tax expense. In the Pulp business, quarterly sales decreased by 3% QoQ, as a result of a lower average price in line with international market variations. Pulp sales volume increased 10% QoQ. Softys recorded a 6% QoQ decrease in sales, mainly due to the negative impact of average exchange rates depreciation against the US dollar. This was compounded by a challenging sales environment in some markets. In Biopackaging, sales increased 4% QoQ, as higher volumes were recorded along with a stable average price in dollars. Growth was driven by the corrugated business. As anticipated, the Net Debt/EBITDA ratio continues to improve, closing 4Q24 at 3.15x, lower than the 3.30x recorded in 3Q24. USD Millions 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY Sales 1,959 1,984 1,919 -3% -2% 8,100 7,743 -4% EBITDA 229 433 332 -23% 45% 1,337 1,542 15% EBITDA Margin 11.7% 21.8% 17.3% -450bp 560bp 16.5% 19.9% 340bp Net Income (Loss) 35 147 10 -93% -70% 470 491 4% Investments 220 194 261 35% 19% 1,063 752 -29% Free Cash Flow (144) 61 (109) - -24% (476) (246) -48% Total Assets 17,177 17,181 16,936 -1% -1% 17,177 16,936 -1% Net Debt 4,628 4,752 4,857 2% 5% 4,628 4,857 5% Market Capitalization 4,845 4,356 3,916 -10% -19% 4,845 3,916 -19% Closing Exchange Rate (CLP/USD) 877 898 996 11% 14% 877 996 14% Average Exchange Rate (CLP/USD) 896 932 962 3% 7% 839 944 12% Closing Exchange Rate (BRL/USD) 4.84 5.45 6.19 14% 28% 4.84 6.19 28% Average Exchange Rate (BRL/USD) 4.96 5.55 5.84 5% 18% 5.00 5.39 8% 1 To facilitate analysis, the figures presented in this document are subject to rounding. Therefore, some numerical calculations may not coincide exactly.
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4 RELEVANT EVENTS CMPC chosen as the world’s most sustainable forestry company - In November 2024, the prestigious Dow Jones Sustainability Index ranking recognized CMPC as the world's most sustainable company in the Paper & Forest Products sector , for the second consecutive year . This recognition is aligned with the company's Strategy 2030, which has sustainability as a central component, and with the work that has been done since 2017 on the environmental front to combat climate change. Dividend Payment - On December 5, the Board of Directors of Empresas CMPC S.A. agreed to distribute interim dividend N°285 of USD 0.0168 per share as of December 30, 2024. The dividend will be charged to the Distributable Net Income for fiscal year 2024. Luis Felipe Gazitúa and Francisco Ruiz-Tagle recognized for outstanding professional careers - The School of Economics and Business of the Universidad de Chile (FEN) recognized Luis Felipe Gazitúa, Chairman of CMPC, and Francisco Ruiz -Tagle, the company’s Chief Executive Office, for their outstanding professional careers. Gazitúa received the “90 Ye ars FEN Lifetime Achievement Award” for his more than three decades of contributions in the telecommunications and wood pulp sectors, especially in sustainability initiatives. Ruiz - Tagle was inducted into the FEN 2024 Circle of Honor in the Economy categor y, highlighting his significant contribution to the country's development and his commitment to the community. CMPC receives the “Board of Directors of the Year” award from the Chilean Institute of Directors - In December, at the Board Director's Summit Chile 2024, CMPC received the “Board of Directors of the Year 2024” award. On this occasion 164 companies were evaluated. The organization’s objective was to recognize the boards that have demonstrated exemplary leadership in overcoming the challenges of implementing the Financial Market Commission’s Rule 461. The award was received by Luis Felipe Gazitúa, Chairman of Empresas CMPC, accompanied by other members of CMPC Board of Directors.
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5 SUBSEQUENT EVENTS Rural Fires Situation - On January 20, 2025, in the context of a large fire in the Los Sauces municipality in the Araucanía region, three forestry brigade members from the contracting company SERFONAC lost their lives while they were fighting a fire in CMPC forest. This accident constitutes an extremely painful loss for the entire CMPC team. In terms of the impact of fires on the company's plantations, during the current season approximately 1,400 hectares have been affected, compared to 100 hectares affected in the same period last season, and with an average of 1,650 hectares in the last fiv e years. The company has made important efforts to increase and optimize its firefighting resources and thus provide an earlier response to fire outbreaks. To date, the company has 140 fire brigades and more than 1,000 firefighters, supported by 10 helicop ters, 11 air tankers and 3 coordination aircrafts. Change of CMPC Chairman - By means of an Material Fact released on January 17, 2025, the company informed the Controlling Group’s decision to support the renewal as Director and election as Chairman of the Company of Mr. Bernardo Larraín Matte, in the upcoming election that will take place during the ordinary shareholders' meeting next April 2025. In the same announcement, it was informed that Mr. Luis Felipe Gazitúa Achondo will not be nominated as Director in the upcoming election, so as of that moment he will cease to be Chairman of the Company, a position he has held since 2016. Finally, it was indicated that the other members of the future board to be elected on that occasion will be nominated in accordance with the regulations in force.
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6 REVIEW OF CONSOLIDATED RESULTS SALES The company reported consolidated sales of US$1,919 million in the fourth quarter, down 3% versus the previous quarter and 2% below the same period of the previous year. The following comparison by type of business excludes income from insurance compensation of USD35 million in 12M24 (USD14 million in Pulp and USD21 million in Biopackaging) and USD176 million in 12M23 (recorded in Pulp). In the fourth quarter, there was a 3% QoQ decline in Pulp sales ( -USD25 million), which is explained by a higher sales volume together with a lower average price. In Biopackaging, sales grew 4% (USD11 million) due to higher sales volume. In Softys, sales decreased 6% ( -USD51 million), reflecting the negative impact of exchange rate fluctuations on the conversion to dollar-denominated sales. YoY, there was a 21% increase in Pulp sales (USD146 million), mainly due to higher sales volume. In Biopackaging, there was a 4% increase (USD11 million) as a result of higher sales volume. In the case of Softys, there was a 20% decline ( -USD197 million), reflecting the negative impact of exchange rate fluctuations on the conversion to dollar-denominated sales. Cumulative sales to December increased by 3% in 2024. In Pulp, sales increased (USD86 million) due to a higher average price. Biopackaging (-USD71 million) decreased due to a lower average price. In the case of Softys, there was a 6% decrease (-USD231 million) due to a lower volume of tissue sales, in addition to a negative exchange rate effect on sales prices expressed in US dollars. Sales to Third Parties USD millions
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7 In 4Q24, the relative weight of the Pulp business in consolidated sales was 43%, while Softys reached 42% and Biopackaging 15%. Compared to the previous quarter, the contribution of Pulp remained stable, while those of Softys and Biopackaging varied slightly. Compared to 4Q23, Pulp increased its share from 35% to 43%, Softys reduced its share from 51% to 42%, and Biopackaging grew slightly from 14% to 15%. During 4Q24, the share of foreign subsidiaries represented 37% of consolidated sales, lower than the 47% recorded in the same quarter of the previous year. In contrast, exports sales increased their contribution to 47%, compared to 38% in 4Q23. Domestic sales in Chile reached 16%, slightly higher than the 15% of the same period of the previous year. Sales by Destination Sales by Business
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8 OPERATING COSTS Operating costs, which exclude depreciation and amortization, stumpage and decreases due to harvest, reached USD1,257 million, 2% higher QoQ and 10% lower YoY. The higher QoQ figure was related to an increase in Pulp, driven by higher sales volume, and a minor increase in Biopackaging, offset by a lower value in Softys. The YoY decline is mainly explained by lower costs in Softys, which is in line with its lower turnover and the exchange rate impact on results expressed in US dollars terms. This was accompanied by lower cash costs in Pulp and stable costs in Biopackaging. Consolidated operating costs in 4Q24 represented 65% of total sales, compared to 62% in 3Q24 and 71% in 4Q23. OTHER OPERATING EXPENSES Other Operating Expenses are the sum of Distribution Costs, Administrative Expenses and Other Expenses by Function. In 4Q24, Other Operating Costs and Expenses totaled USD330 million, an increase of 3% QoQ and stable YoY. Compared to 3Q24, higher administrative expenses in Pulp and Biopackaging were largely offset by lower distribution costs, especially in Softys. Compared to 4Q23, lower Other Operating Costs and Expenses in Softys were offset by increases in Pulp and Biopackaging. In 4Q24, Other Operating Expenses represented 17.2% of sales, compared to 16.1% in 3Q24 and 16.8% in 4Q23.
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9 EBITDA In 4Q24, EBITDA was USD332 million, down 23% QoQ and up 45% YoY. EBITDA margin was 17.3% in 4Q24, down from 21.8% in 3Q24 and up from 11.7% in 4Q23. The analysis at the business level excludes EBITDA generated by insurance compensations received of USD46 million in 1Q24 and US176 million in 1Q23. Comparing QoQ, the decrease of USD101 million mainly reflects a lower result in Pulp (-USD87 million), derived from a lower average sales price. Biopackaging recorded a lower result (-USD7 million) , reflecting higher operating costs and expenses. The Softys business (-USD5 million) had a decline in its result principally due to the negative exchange rate impact and a more challenging environment for consumption in Latin America. Holding and Others expenses increased by USD2 million. In the YoY comparison, EBITDA increased in Pulp (USD157 million), driven by higher sales volume and lower cash costs. For Biopackaging, EBITDA was flat; higher sales volume (+3%) was offset by a slightly lower margin (-30bp). Softys, on the other hand, recorded a de cline of USD49 million, related to unfavorable exchange rate effects on results in dollar terms, together with lower tissue volumes. Holding and Other s expenses increased by USD5 million in the period. In the 12 month-cumulative period, there was a higher result in 2024, explained by the growth in Pulp (USD353 million). This was accompanied by a decline in Biopackaging, (-USD1 million), an increase in Softys (USD4 million) and higher holding and other expenses, which increased by USD21 million. EBITDA USD millions
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10 During the quarter, the effects of fluctuations in the international price of pulp, exchange rate and volume, were that the contribution of the various businesses to consolidated EBITDA varied. Thus, Pulp's share reached 65% in 4Q24, decreasing from 69% in 3Q24 and increasing from 30% in 4Q23. This was accompanied by an increase in the share of Softys, which rose to 30% in 4Q24 from 25% in 3Q24, although decreasing from 62% in 4Q23. Biopackaging recorded a contribution of 5% in 4Q24 from 6% in 3Q24 and 8% in 4Q23. FINANCIAL RESULT Financial Expenses for the quarter totaled USD78 million, 7% higher than in 3Q24 and 14% higher than in 4Q23. Meanwhile, Financial Income (USD10 million) decreased 17% compared to USD12 million in 3Q24 and 39% compared to USD16 million in 4Q23. Income Taxes recorded an expense of USD78 million in 4Q24, compared to an expense of USD56 million in 3Q24 and a positive value of USD20 million in 4Q23. During 4Q24 there was a significant depreciation of the Brazilian eal against the US dollar (the closing exchange rate fell 12% QoQ), which generated an increase in the value of deferred taxes in 4Q24. In 3Q24 and 4Q23, the situation was reversed, generating gains in deferred taxes due to the appreciation of the closing real against the US dollar (2.0% and 3.5% QoQ, respectively). Foreign Exchange Differences with impact on results totaled a loss of USD15 million during 4Q24, which compares to a gain of USD4 million in 3Q24 and a loss of USD47 million in 4Q23. The 4Q24 loss is due to the appreciation of the US dollar against the main currencies of the markets in which the company operates. This contrasts with the gains recorded in 3Q24, a period in which the dollar depreciated against those currencies. Indexation Unit Result recorded a gain of USD32 million in 4Q24, which compares to gains of USD23 million in 3Q24 and USD100 million in 4Q23. The lower figure in these last quarters compared to 4Q23 is mainly in line with the stabilization of inflation in Argentina throughout 2024. Other Income (Loss) resulted in a loss of USD36 million. This compares to a loss of USD16 million in 3Q24 and a loss of USD19 million in 4Q23. Other Gains (Losses) includes items such as the net effect of forestry losses, donations, fines and other provisions, among the most important. EBITDA by Business
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11 NET INCOME (LOSS) CMPC reported a Net Income of USD10 million in the quarter, lower than the earnings of USD147 million in 3Q24 and of USD35 million in 4Q23. The QoQ result is mainly explained by a lower EBITDA generation ( -USD101 million) together with higher income taxes (-USD22 million). There were also lower exchange rate differences (-USD19 million), higher net financial expenses (-USD6 million) . This was accompanied by higher results from indexation adjustment units (USD9 million) and a higher income from biological assets, which are included in the Other1 item (USD2 million). The lower YoY result reflects the combination of higher EBITDA generation (USD103 million), higher foreign exchange differences (USD32 million) and higher Othe r1 (USD21 mill ion), with higher income taxes (-USD98 million), lower indexation adjustment units result (-USD68 million), and higher net financial expenses (-USD15 million). The higher cumulative result to Decembe r in 2024 is explained by a higher EBITDA (USD205 million), higher Othe r1 (USD80 millions) and higher foreign exchange differences (USD63 million). This was partially offset by higher income taxes ( -USD159 million), a lower indexation adjustment units result (-USD105 million) and higher net financial expenses (-USD63 million). 1 ‘Other’ includes Depreciation and Amortization, Income from Net Biological Assets, Decreases due to Harvest, Income from Equity in Associates, and Other Gains (Losses). Net Income USD millions
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12 CASH FLOW ANALISIS Operating Cash Flows were USD259 million in 4Q24, down from USD355 million in 3Q24 and up from USD137 million in 4Q23. QoQ, the decrease is mainly due to lower collections from sales of goods and services. YoY, the increase is largely due to lower payments to suppliers of goo ds and services, and higher collections from sales of goods and services. Investment Cash Flows recorded net disbursements of USD241 million in 4Q24, an increase from USD169 million disbursed in 3Q24 and USD211 million disbursed in 4Q23. Both variations are mainly related to higher cash flows in 4Q24 for the purchase of property, plant and equipment than in the comparative periods. Financing Cash Flows were net disbursements of USD57 million in 4Q24, which compares to net disbursements of USD51 million in 3Q24 and net inflows in 4Q23 of USD176 million. In the quarterly comparison, the difference is explained by lower loan amounts in 4Q24, largely offset by lower debt repayments. Compared to 4Q23, the lower figure is explained by lower loan amounts and higher dividend payments in 4Q24. FREE CASH FLOW Free Cash Flow during 4Q24 was a net outflow of USD109 million, which compares to a net inflow of USD61 million in 3Q24 and a net outflow of USD144 million in 4Q23. When comparing QoQ, the lower free cash flow is mainly attributable to lower EBITDA generation and higher investments. In the YoY comparison, the increase in free cash flow is mainly explained by higher EBITDA generation and a higher reduction in working capital. This was partially offset by higher investments and an increase in dividend and interest payments. USD Millions 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY EBITDA 229 433 332 -23% 45% 1,108 1,542 39% (-) Total Investments (220) (194) (261) 35% 19% (843) (752) -11% (-) Dividends (0) (41) (41) -1% >1000% (205) (255) 24% (-) Net Financial Expenses (49) (59) (81) 37% 64% (116) (247) 112% (-) Income Tax (42) (16) (25) 60% -41% (317) 30 - (+/-) Variation in Working Capital (1) 117 0 151 >1000% 29% 256 (121) - (-) Other (2) (178) (63) (185) 193% 4% (214) (443) 107% - - Free Cash Flow (144) 61 (109) - -24% (332) (245) -26% (1) Working Capital = Trade and Other Accounts Receivable + Inventories - Trade and Other Accounts Payable. (2) Other includes other cash flow items that are not considered in the Variation in Working Capital such as: currency translation differences, VAT payments and other non-recurring items.
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13 INVESTMENTS Investments during 4Q24 totaled USD261 million, representing an increase from USD194 million recorded in 3Q24, and USD220 million in 4Q23. In 4Q24, there were USD101 million in organic growth capital expenditures, which compares to USD92 million in 3Q24, and lower than the USD135 million in 4Q23, a period that captures the execution of the BioCMPC project. Maintenance capital expenditures in 4Q24 amounted to USD159 million, compared to USD67 million in 3Q24 and USD95 million in 4Q23. Maintenance investment includes part of the maintenance of the pulp mills. The maintenance schedule is shown on page 19. BALANCE SHEET ANALYSIS USD Thousands dec-23 dec-24 YoY Current Assets 4,572,339 4,255,310 -7% Non-Current Assets or Group of Assets Classified as Maintained for Sale 808 3,059 279% Non-Current Assets 12,604,161 12,677,302 1% Total Assets 17,177,308 16,935,671 -1% Current Liabilities 2,476,375 2,044,709 -17% Non-Current Liabilities 6,816,037 7,091,798 4% Total Liabilities 9,292,412 9,136,507 -2% Non-Controlling Participations 454 425 -6% Equity Attributable to the Owners of the Controll ing Company 7,884,443 7,798,739 -1% Total Equity 7,884,897 7,799,164 -1% Total Liabilities and Equity 17,177,309 16,935,671 -1% Total Assets at year -end 4Q24 totaled USD16,936 million, 1% lower than USD17,177 million reached in December 2023. This result was due mainly to the combination of decreases in Cash and Cash Equivalents (-25%, USD215 million), and in Current Tax Assets ( -61%, USD177 million), which were offset by increases in Non-Current Biological Assets (5%; USD146 million). Total Liabilities decreased 2% between the end of December 2023 and December 2024, due to a decrease in Current Liabilities, which was partially offset by an increase in Non -Current Liabilities, in the context of the debt refinancing during the first quarter of 2024. The m ain reductions were seen in Other Current Financial Liabilities (-23%, USD180million) and Other Non -Current Financial Liabilities ( -31%, USD155 million). On the other hand, higher balances were recorded in Other Non -Current Financial Liabi lities (+5%, USD245 million) and Deferred Tax Liabilities (8%, USD129 million). Equity attributable to owners of the controlling company decreased by 1% compared to December 2023 and stood at USD7,799 million at the end of December 2024 (USD7,885 million in December 2023). Investments USD millions 10 4 1 9 6 1 9 1 92 101
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14 FINANCIAL DEBT USD Millions 4Q23 3Q24 4Q24 QoQ YoY Current Interest-Bearing Liabilities 775 521 580 11% -25% Non-Current Interest-Bearing Liabilities 4,736 5,063 4,952 -2% 5% Net Hedging Current Liabilities related to Debt Instruments 1 5 16 220% >1000% Net Hedging Non-Current Liabilities related to Debt Instruments (37) (60) 6 - - Gross Financial Debt 5,475 5,528 5,554 0% 1% Cash, Cash Equivalents and Short-term financial instruments 846 776 697 -10% -18% Net Financial Debt 4,628 4,752 4,857 2% 5% Gross Financial Debt stood at USD5,554 million at the end of 4Q24, in line with the amount recorded at the end of 3Q24 and 1% higher than 4Q23. Net Financial Debt totaled USD4,857 million at the end of 4Q24, 2% higher than 3Q24 and 5% higher than 4Q23. Financial Debt Debt Maturity Profile USD millions
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15 FINANCIAL RATIOS .46x 4.0 x . x . 0x .1 x 1. x 2.0x 2. x .0x . x 4.0x 4. x 4 2 1 24 2 24 24 4 24 nternal Policy 0. 9x 0.60x 0.61x 0.60x 0.6 x 0.2x 0.4x 0.6x 0. x 1.0x 1.2x 4 2 1 24 2 24 24 4 24 Covenant nternal Policy 1.2 x 2. 0x 2.22x 1. x 1. x 0.0x 1.0x 2.0x .0x 4.0x 4 2 1 24 2 24 24 4 24 nternal Policy The Net Debt/ EBITDA (1) ratio was 3.15x in 4Q24, down from 3.30x in 3Q24 and down from 3.46x in 4Q23. (1) Net Debt = Gross Financial Debt – Cash and Cash Equivalents - Investment instruments up to 365 days. Detailed calculations are set forth in page 14. The Net Debt /Equity* (2) ratio was 0.63x in 4Q24, which compares to 0.60x in 3Q24 and 0.59x in 4Q23. (2) The Net Debt/Equity* ratio is determined according to the following definitions: Net Debt = Gross Financial Debt – Cash and Cash Equivalents. Equity = Equity Attributable to Controlling Company + Non-Controlling Interests. The Liquidity (3) ratio was 1.53x in 4Q24, lower than the 1.73x in 3Q24 and higher than the 1.23x ratio in 4Q23. (3) Liquidity = (Cash + Undisbursed committed lines) / (Amortization 12m + Net Financial Expenses 12m). Net Debt / EBITDA Net Debt / Equity* Liquidity Ratio * Note: Net Debt / Equity* ratio is defined according to the covenant that protects bond lines 570, 733 and 928 issued in Chile. At the Bondholders' Meetings on December 20, 2024, this covenant was modified in its value (1.0x) and in its calculation, which are presented in this report.
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16 PROFITABILITY AND DEBT RATIOS Annual Return on Equity (1) was 6.26% in 4Q24 compared to 6.34% in 3Q24 and 5.95% in 4Q23. Annual Return on Assets (2) was 2.88% in 4Q24, compared to 3.00% in 3Q24 and 2.79% in 4Q23. Annual Earnings per Share (3) was USD 0.20 in 4Q24, compared to USD 0.21 in 3Q24 and USD 0.19 in 4Q23. Debt Ratio (4) was 1.17 in 4Q24, compared to 1.13 in 3Q24 and 1.18 in 4Q23. Current Debt Ratio (5) was 22.38% in 4Q24, compared to 21.58% in 3Q24, and 26.65% in 4Q23. Non-Current Debt Ratio (6) was 77.62% in 4Q24, compared to 78.42% in 3Q24 and 73.35% in 4Q23. (1) Annual Return on Equity = Net Income (Loss) U12M / Average Equity (2) Annual Return on Assets: = Net Income (Loss) U12M / Average Assets (3) Earnings per share (USD) = U12M Net Income (Loss) / Number of Shares (4) Debt Ratio = Total Liabilities / Total Equity (5) Current Debt Ratio = Current Liabilities / Total Debt (6) Non-current debt ratio = Non-current liabilities / Total debt Debt Indicators Performance Indicators
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17 RESULTS BY BUSINESS PULP In 4Q24, sales in the Pulp segment totaled USD833 million, down 3% QoQ and up 21% YoY, reflecting lower pulp prices in international markets. YoY, the variation is explained by a higher sales volume and to a lesser extent a higher average price. EBITDA for 4Q24 was USD230 million, down 27% QoQ and up 215% YoY. The QoQ decline is related to lower sales prices, while the YoY improvement is mainly due to higher volumes and lower cash costs. Sales & EBITDA – Pulp and Forestry USD Millones 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY - Pulp Sales 532 691 667 -3% 25% 2,670 2,604 -2% - Forestry Sales 154 166 166 0% 8% 624 614 -2% Sales Pulp Segment 686 857 833 -3% 21% 3,294 3,218 -2% EBITDA 73 317 230 -27% 215% 800 991 24% EBITDA Margin 10.6% 37.0% 27.6% -940bp 1,700bp 24.3% 30.8% 650bp Forestry Sales Volume to Third Parties - Forestry Thousand m3 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY - Pulpwood 17 77 61 -21% 255% 73 224 205% - Sawlogs 390 363 367 1% -6% 1,913 1,514 -21% - Sawn Timber 172 206 152 -26% -12% 615 637 4% - Millwork 51 57 63 11% 24% 214 221 4% - Plywood 104 98 110 12% 5% 416 407 -2% - Other 168 116 109 -6% -35% 696 517 -26% Total Forestry 903 917 861 -6% -5% 3,926 3,520 -10% Sales volume to third parties of the Forestry business decreased 6% QoQ, principally as a result of lower sawn timber sales ( -26%). Pulpwood and others also declined. This decline was offset to some extent by higher sales of plywood, millwork and sawlogs. Compared to the previous year, sales volume decreased by 5% in 4Q24, mainly explained by lower sales of sawn timber, sawlogs, and others. This decline was partially offset by higher sales of pulpwood, plywood and millwork. The average sales price of the Forestry business increased by 7% QoQ and 13% YoY.
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18 Pulp Pulp Production Thousand Tons 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY BSKP(1) 174 211 192 -9% 10% 777 792 2% BEKP 702 839 883 5% 26% 3,225 3,400 5% Total Pulp 875 1,050 1,075 2% 23% 4,001 4,192 5% Paper(2) 30 31 25 -21% -17% 120 109 -9% (1) Includes UKP (2) Includes Sackraft produced in Laja mill and P&W paper produced in Guaíba mill. Total pulp production during 4Q24 was 1,075,000 tons, reflecting increases of 2% QoQ and 23% YoY. Total short fiber production during the quarter was 883,000 tons, an increase of 5% QoQ and 26% YoY. This quarterly variation is explained by lower plant maintenance time. The hig her year -over-year production reflects the increase in capacity in Brazil, as a result of the BioCMPC project. Long fiber production was 192,000 tons, a decrease of 9% QoQ and an increase of 10% YoY. Pulp Mills Maintenance Plan 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Laja (360 Mton) Pacífico (528 Mton) Santa Fe I (370 Mton) Santa Fe II (1,126 Mton) Guaíba I (430 Mton) Guaíba II (1,950 Mton) *Annual plant capacity. The maintenance schedule can be modified during the year without affecting mill performance. Planeada Ejecutada
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19 BSKP cash cost (1) was USD358/ton in 4Q24, showing stability with respect to the previous quarter and a 9% YoY decrease. Compared to the previous quarter, higher material costs were offset by lower wood and material costs. When compared to the same quarter of the previous year, cash cost showed reductions across all cost lines. The most significant decreases were in energy and wood, while to a lesser extent there were declines in wages, materials and chemicals. BEKP cash cost (1) reached USD227/ton in 4Q24, down 6% QoQ and 21% YoY. The variation in cash cost versus the previous quarter is mainly due to lower energy costs. There were also decreases in the cost of materials, wages and wood, while chemical costs increased. Compared to the same quarter of the previous year, cash costs decreased across all cost lines, with reductions in energy, followed by wood and chemicals. To a lesser extent, decreases were also observed in materials and wages Sales Volume - Pulp Third Parties (Th. Tons) 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY BSKP 165 198 211 7% 28% 723 751 4% BEKP 648 761 847 11% 31% 2,928 2,954 1% Total Third Parties 813 959 1,058 10% 30% 3,651 3,705 1% P&W Guaíba 13 13 5 -61% -62% 46 41 -11% Intercompany (Th. Tons) 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY BSKP 12 12 10 -20% -21% 44 45 2% BEKP 94 96 90 -6% -5% 342 370 8% Total Intercompany 107 108 100 -8% -7% 386 415 7% Total Sales Volume 920 1,067 1,158 9% 26% 4,037 4,120 2% (1) Cash costs are calculated as the cost of wood + chemicals + energy + materials + labor. 2 242 22 BSKP Cash Cost USD/ton BEKP Cash Cost USD/ton
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20 Pulp sales volume to third parties increased 10% QoQ both for short fiber (11%) and long fiber (7%). In both cases, there were higher exports to China, Europe and the rest of Asia. YoY, pulp sales volume increased 30%, with growth for both long fiber (28%) and short fiber (31%). The YoY increase in short fiber is explained by higher exports to China, the rest of Asia, Europe and North America. In the case of long fiber, the variation is the result of a combination of higher exports to China and the rest of Asia and lower exports to Latin America. The average effective net export pric e1 was USD749/ton CIF for BSKP ( -2% QoQ and +6% YoY) and USD577/ton CIF for BEKP (-16% QoQ and +1% YoY). During 4Q24, the differential between the two fibers was USD172/ton CIF. The gap increased from the previous quarter's level of USD75/ton and from the USD140/ton recorded in 4Q23. 1 Price is calculated by dividing the total sum of CMPC Pulp sales in dollars by the total sales volume. 542 557 560 546 590 698 882 854 758 809 954 971 916 859 682 646 710 719 801 764 749 474 464 469 454 465 536 697 703 658 672 797 871 865 748 549 518 570 628 730 689 577 USD/ton CIF BSKP BEKP CMPC Average Net Export Price - Pulp
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21 SOFTYS Through its subsidiary Softys, CMPC has an industrial presence in the Tissue Paper and Personal Care markets in 8 countries in the region: Chile, Brazil, Mexico, Peru, Argentina, Colombia, Uruguay and Ecuador. In 4Q24, Softys sales totaled USD796 million, down 6% compared to 3Q24 and 20% YoY. During the period, the main sales currencies of the Softys business suffered a significant depreciation against the dollar, which led to lower sales and results expressed in US dollar compared to previous periods. Additionally, throughout the year, the company has operated in a challenging context for consumer products in the region, to which it has responded by focusing its efforts on brand building and positioning personal care products in markets with the greatest growth potential. In 4Q24, EBITDA totaled USD104 million, representing a 5% QoQ decrease, mainly explained by currency depreciation in Chile, Brazil and Argentina. Compared to 4Q23, EBITDA registered a 32% decline, mostly due to unfavorable exchange rate fluctuations and lower sales volume. As a result of the above, the EBITDA margin was 13.1% in 4Q24, compared to 12.8% in 3Q24 and 15.4% in 4Q23. During 4Q24, the Tissue Paper business recorded stable sales volume QoQ and a 4% YoY drop. The YoY result is mainly explained by a lower consumption dynamism in the region’s countries. The average sales price in dollars fell 5% QoQ and 18% YoY, due to the depreciation of regional sales currencies both QoQ and YoY. In Personal Care products, diaper s volume increased 1% QoQ, while feminine care fell 2%. YoY, volume decreased 4% in diapers and feminine protection products increased 11 %. Average sales price in dollars fell QoQ and YoY, by 9% and 18%, respectively. Sales Volume to Third Parties - Softys 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY Tissue Paper (Th. tons) 216 208 207 0% -4% 938 820 -13% Personal Care - Diapers 1,913 1,827 1,838 1% -4% 6,928 7,473 8% - Feminine Care 451 509 500 -2% 11% 1,996 2,019 1% - Other (1) 562 542 603 11% 7% 2,205 2,265 3% Total Personal Care (Million units) 2,926 2,878 2,940 2% 0% 11,130 11,757 6% (1) Other category mainly relates to wet wipes. Sales & EBITDA - Softys USD Millions 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY - Tissue Paper 576 480 452 -6% -22% 2,253 1,932 -14% - Personal Care 418 369 344 -7% -18% 1,380 1,468 6% Total Sales Softys 995 849 796 -6% -20% 3,634 3,400 -6% EBITDA 153 109 104 -5% -32% 506 510 1% EBITDA Margin 15.4% 12.8% 13.1% 30bp -230bp 13.9% 15.0% 110bp
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22 BIOPACKAGING In 4Q24, Biopackaging sales stood at USD288 million, representing a 4% increase in both QoQ and YoY as a result of higher sales volumes, in an environment that remains challenging in various sectors. EBITDA in 4Q24 totaled USD19 million, with a 27% decline QoQ, associated with higher costs and operating expenses. YoY, EBITDA remained stable, reflecting a greater recovery in sales volume that was offset by higher costs. Thus, the EBITDA margin stood at 6.6% in 4Q24, lower than the 9.4% in 3Q24 and the 6.9% recorded in 4Q23. Sales & EBITDA - Biopackaging USD Millions 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY Sales 277 277 288 4% 4% 1,169 1,098 -6% EBITDA 19 26 19 -27% 0% 103 134 30% EBITDA Margin 6.9% 9.4% 6.6% -280bp -30bp 8.8% 12.2% 340bp Sales volume increased 4% QoQ, mainly due to growth in corrugated boxes and other papers, along with a recovery in corrugated paper and paper sacks. This was partly offset by lower sales of boxboard and molded pulp trays. YoY, sales volume increased by 3%. There were higher sales of boxboard, other papers, corrugated boxes and molded pulp trays compared to the previous year. This was accompanied by decreases in paper sacks and corrugated paper. Sales Volume to Third Parties Thousand Tons 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY - Boxboard 100 109 106 -3% 7% 388 417 8% - Paper Sacks 37 33 33 2% -10% 151 133 -12% - Corrugated Paper 28 22 24 8% -15% 90 92 2% - Corrugated Boxes 39 36 43 21% 11% 143 153 7% - Molded Pulp Trays 2 4 3 -28% 23% 14 17 16% - Other Paper (1) 20 20 24 20% 22% 72 83 15% Total 227 225 235 4% 3% 859 895 4% (1) Other Paper includes graphic, sack kraft, and specialty papers. The average sales price in dollars was stable QoQ and increased 1% YoY.
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23 SUSTAINABILITY CMPC has set four corporate sustainability goals to be achieved between 2025 and 2030. These goals are aligned with the UN Sustainable Development Goals (SDGs) and its 2030 Agenda. In particular, SDG 13 Climate Action, SDG 6 Clean Water and Sanitation, SDG 12 Responsible Production and Consumption, and SDG 15 Life of Terrestrial Ecosystems. Although the progress of these goals is not necessarily linear, but staggered, associated with the projects with the greatest impact, CMPC is committed to meeting these goals and is implementing projects to achieve them, and is also committed to their monitoring, management, and reporting. Sustainability Targets * Reduce our absolute greenhouse gas emissions by 50% (Scope 1 and 2) by 2030. Baseline 1 2022 2023 4Q23 1Q24 2Q24 3Q24 2030 Target Scope 1 & 2 emissions (ktCO2e)2 2,428 2,013 1,886 425 404 400 411 1,214 To become a zero-waste-to-landfill company by 2025. Baseline 1 2022 2023 4Q23 1Q24 2Q24 3Q24 2025 Target Waste for final disposal (t) 3 718,119 352,049 280,778 63,489 53,145 44,318 28,316 0 Reduce industrial water use per ton of product by 25% by 2025. Baseline 1 2022 2023 4Q23 1Q24 2Q24 3Q24 2025 Target Use of Industrial Water (m3/t) 4 30.8 28.1 27.6 28.4 26.6 26.3 25.7 23.1 Add 100,000 hectares of conservation and/or protection by 2030, to the more than 320,000 hectares that the company owns in Argentina, Brazil and Chile for these purposes. Baseline 1 2022 2023 4Q23 1Q24 2Q24 3Q24 2030 Target Conservation and protection (ha) 5 321,529 402,817 409,827 409,827 411,215 412,933 414,038 421,529 *Figures are reported with a one-quarter lag. *Values updated after the inclusion of new plants acquired (SK Iguazú, Softys Río, Powell Valley, Softys Puebla and Niuform). The 2018 baselines and the values of the water, emissions and waste goals were also updated, maintaining the reduction percentages . (1) 2018. (2) Absolute GHG emissions Scope 1 and 2 during the reporting period. (3) Non-hazardous solid waste sent to final disposal during the reporting period. In accordance with international guidelines, the co ncept of “zero waste to landfill” refers to a reduction of at least 90% in the amount of solid waste sent to any of these f acilities with respect to the established base year. (4) Cumulative water intensity for the reporting period. (5) Total hectares for conservation and protection.
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24 RISK MANAGEMENT Empresas CMPC and its subsidiaries are exposed to a number of risks inherent to their businesses. CMPC's Risk Management Program seeks to identify and manage the main risks that may affect the strategy and objectives of the business. In addition, it incorporates monitor ing of emerging risks, including, for example, risks caused or intensified by climate change, in the most appropriate manner, with the objective of minimizing potential adverse effects. CMPC's Board of Directors establishes the general framework for risk management, which is implemented at different levels of the Company. Thus, the Audit, Ethics and Compliance Committee of the Board of Directors monitors the correct execution of the program and Management manages it through the Risk, Finance, and Sustainability and Regulation Committees. In addition, various departments coordinate and control the correct execution of the prevention and mitigation policies for the main risks identified. These are the Risk, Finance, Compliance, Sustainability, Environment and Internal Audit departments. More information is provided in Note 3 on Risk Management in the Company's Financial Statements. FORWARD LOOKING STATEMENTS This financial report may contain forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those previously projected. These risks include financial, operational, compliance and strategic risks. All of them are described in Note 3 to the Consolidated Financial Statements of Empresas CMPC (Note 3, Risk Management). In accordance with applicable Chilean law, Empresas CMPC publishes this report on its website (www.cmpc.com), in addition to sending the Company's Financial Statements and the corresponding notes to the Financial Market Commission (CMF) for review and consultation (www.cmfchile.cl).
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25 FINANCIAL TABLES FINANCIAL STATEMENTS USD Thousands dec-23 sep-24 dec-24 QoQ YoY Current Assets 4,572,339 4,539,253 4,255,310 -6% -7% Cash and Cash Equivalents 846,258 690,013 631,632 -8% -25% Accounts Receivable 1,179,664 1,249,562 1,222,420 -2% 4% Inventory 1,555,429 1,689,657 1,537,175 -9% -1% Biological Assets 340,298 338,918 350,258 3% 3% Tax Assets 289,665 143,251 112,343 -22% -61% Other Current Assets 361,025 427,852 401,482 -6% 11% Non-Current Assets or Group of Assets Classified as Maintained for Sale 808 808 3,059 279% 279% Non-Current Assets 12,604,161 12,640,879 12,677,302 0% 1% Intangible Assets, Different from Goodwill 310,447 302,384 280,800 -7% -10% Goodwill 411,216 348,253 322,522 -7% -22% Property, Mills and Equipment, Net 8,025,198 8,017,641 8,035,162 0% 0% Right of Use Assets 251,777 258,221 280,765 9% 12% Biological Assets 3,105,422 3,201,753 3,251,415 2% 5% Deferred Tax Assets 90,504 102,602 122,096 19% 35% Other Non-Current Assets 409,597 410,025 384,542 -6% -6% TOTAL ASSETS 17,177,308 17,180,940 16,935,671 -1% -1% Current Liabilities 2,476,375 1,970,267 2,044,709 4% -17% Other Financial Liabilities 785,183 537,865 605,181 13% -23% Operating Liabilities 1,184,571 1,116,614 1,087,760 -3% -8% Other Current Liabilities 506,621 315,788 351,768 11% -31% Non-Current Liabilities 6,816,037 7,157,851 7,091,798 -1% 4% Other Financial Liabilities 4,764,494 5,074,995 5,009,151 -1% 5% Deferred Tax Liabilities 1,593,413 1,706,957 1,722,376 1% 8% Other Non-Current Liabilities 458,130 375,899 360,271 -4% -21% Non-Controlling Participations 454 465 425 -9% -6% Equity Attributable to the Owners of the Controller 7,884,443 8,052,357 7,798,739 -3% -1% TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 17,177,308 17,180,940 16,935,671 -1% -1% Note: Balance sheet numbers are based on the quarterly Consolidated Financial Statements of Empresas CMPC S.A. and its subsidiar ies.
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26 INCOME STATEMENT USD Thousands 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY Sales 1,958,798 1,983,677 1,919,252 -3% -2% 8,099,816 7,742,688 -4% Operating Costs (1) (1,399,840) (1,230,754) (1,256,818) 2% -10% (5,484,518) (4,918,672) -10% Operating Margin 558,958 752,923 662,434 -12% 19% 2,615,298 2,824,016 8% Other Operating Expenses (2) (329,904) (319,843) (330,028) 3% 0% (1,278,308) (1,282,254) 0% EBITDA (3) 229,054 433,080 332,406 -23% 45% 1,336,989 1,541,762 15% EBITDA Margin (%) 11.7% 21.8% 17.3% -450bp 560bp 16.5% 19.9% 340bp Depreciation, Amortizations and Stumpage (176,221) (183,822) (200,330) 9% 14% (670,201) (710,361) 6% Increase in Biological Assets due to Forests Growth and Price Effects 26,392 69,501 110,888 60% 320% 229,032 318,052 39% Decrease in Biological Assets due to Harvest (47,112) (66,197) (68,090) 3% 45% (190,809) (222,618) 17% Operating Income 32,113 252,562 174,874 -31% 445% 705,012 926,835 31% Financial Expenses (68,954) (73,470) (78,269) 7% 14% (264,782) (303,892) 15% Financial Income 16,175 11,931 9,883 -17% -39% 77,797 54,201 -30% Share Results in Associated Companies 260 601 681 13% 162% 879 2,523 187% Foreign Exchange Difference (46,589) 4,152 (14,893) - -68% (92,130) (28,937) -69% Indexation Unit Results 100,026 23,139 31,597 37% -68% 312,964 208,200 -33% Other Gains (Losses) (18,571) (16,059) (35,725) 122% 92% (149,319) (89,281) -40% Income Taxes 20,364 (55,688) (77,842) 40% - (120,174) (278,550) 132% Net Income (Loss) 34,824 147,168 10,306 -93% -70% 470,247 491,099 4% Net Income (Loss), attributable to owners of the parent 34,829 147,158 10,300 -93% -70% 470,242 491,054 4% Net Income (Loss), attributable to non-controlling interest (5) 11 6 -45% - 5 46 820% 3Q24 (1) Operating Costs are calculated as: Costs of Sales minus Stumpage minus Decrease in Biological Assets due to Havest minus Depreciation. (2) Other Operating Expenses are calculated as: Distribution Costs plus Administration Expenses plus Other Functional Expense s. (3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses .
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27 CASH FLOW STATEMENT USD Thousands 4Q23 3Q24 4Q24 QoQ YoY 12M23 12M24 YoY Cash flows provided by (used in) operating activities Proceeds from operating activities Proceeds from goods sold and services rendered 2,028,032 2,163,538 2,086,307 -4% 3% 8,777,004 8,292,882 -6% Other proceeds from operating activities 99,780 64,366 62,654 -3% -37% 588,585 308,442 -48% Payments to operating activities Payments to suppliers for goods and services (1,668,562) (1,573,804) (1,599,450) 2% -4% (7,001,121) (6,380,252) -9% Payments to and on account of employees (191,502) (167,151) (168,976) 1% -12% (743,982) (724,694) -3% Payments of premiums and services, annuities and other obligations on policies subscribed (2,467) (10,558) (2,565) -76% 4% (76,648) (64,804) -15% Other operating activity payments (85,798) (105,857) (95,012) -10% 11% (329,560) (415,974) 26% Net cash flows provided by (used in) the operation 179,483 370,534 282,958 -24% 58% 1,214,278 1,015,600 -16% Income taxes paid (reimbursed) (42,064) (15,600) (24,897) 60% -41% (359,538) 29,996 - Net cash flows provided by (used in) operating activities 137,419 354,934 258,061 -27% 88% 854,740 1,045,596 22% Cash flows provided by (used in) investing activities Cash flows used for acquiring subsidiaries 9,921 (2) 1,554 - -84% (312,981) (7,437) -98% Cash flows used for acquiring non-controlling interest - (34,123) (978) -97% - (967) (40,589) 4097% Loans to related entities - 623 77 -88% - - - - Proceeds from disposal of property, plant and equipment 4 16 621 3781% >9999% 77 1,191 1447% Additions to property, plant and equipment (191,274) (102,530) (214,401) 109% 12% (567,093) (516,052) -9% Additions to other non-current assets (38,863) (56,863) (45,473) -20% 17% (179,624) (197,043) 10% Dividends received - 918 - - - 1,034 918 -11% Interest received 19,716 10,175 8,897 -13% -55% 72,967 47,403 -35% Other cash inflows (outflows) (10,016) 12,957 9,783 -24% - 9,243 (26,530) - Net cash flows provided by (used in) investing activities (210,512) (168,829) (239,920) 42% 14% (977,344) (738,139) -24% Cash flows provided by (used in) financing activities Proceeds raised through loans 311,457 214,850 100,005 -53% -68% 1,806,427 867,901 -52% Proceeds raised through short-term loans 241 200,087 100,005 -50% >9999% 523,243 300,092 -43% Proceeds raised through long-term loans 311,216 14,763 - - - 1,283,184 567,809 -56% Loan reimbursements (40,822) (116,560) (16,900) -86% -59% (1,131,271) (708,806) -37% Financial lease payments (23,197) (24,889) (13,063) -48% -44% (77,459) (77,400) 0% Dividends paid (176) (40,848) (40,578) -1% >9999% (205,327) (254,741) 24% Interests paid (68,820) (68,988) (89,673) 30% 30% (238,500) (293,982) 23% Other cash inflows (outflows) (2,024) (14,826) 3,109 - - 55,226 (5,099) - Net cash flows provided by (used in) financing activities 176,418 (51,261) (57,100) 11% - 209,096 (472,127) - Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change 103,325 134,844 (38,959) - - 86,492 (164,670) - Effects of changes in the exchange rate on cash and cash equivalents 9,757 1,713 (19,422) - - 1,076 (49,956) - Net increase (decrease) in cash and cash equivalents 113,082 136,557 (58,381) - - 87,568 (214,626) - Cash and cash equivalents at beginning of period 733,176 553,456 690,013 25% -6% 758,690 846,258 12% Cash and cash equivalents at the end of the period 846,258 690,013 631,632 -8% -25% 846,258 631,632 -25%
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28 FINANCIAL DATA BY BUSINESS UNIT December 2024 Income Statement Data (USD Thousands) Business Unit (operating Segments) Adj. and Elimin. Total CMPC Pulp Biopackaging Softys Total Other(1) (1) Revenue from external customers 3,217,812 1,119,341 3,399,612 7,736,765 5,923 - 7,742,688 Revenue between operating segments of the same entity 330,243 20,148 444 350,835 49,261 (400,096) - Revenue from external and related customers 3,548,055 1,139,489 3,400,056 8,087,600 55,184 (400,096) 7,742,688 Cost of sales (2,939,128) (968,676) (2,269,549) (6,177,829) (5,429) 331,131 (5,851,651) Gross profit 608,927 170,813 1,130,507 1,910,247 49,755 (68,965) 1,891,037 Other income, by function 318,052 - - 318,052 - - 318,052 Distribution costs (72,955) (36,977) (322,730) (432,662) - 10,129 (422,533) Administration expenses (205,923) (67,686) (184,447) (458,056) (133,003) 53,717 (537,342) Other expenses, by function (9,992) (21,366) (286,094) (317,452) (6,902) 1,975 (322,379) Other income (expense) (13,122) (2,769) (44,761) (60,652) 2,331 (30,960) (89,281) Profit (loss) of operational activities 624,987 42,015 292,475 959,477 (87,819) (34,104) 837,554 Financial income 55,321 7,829 27,180 90,330 238,710 (274,839) 54,201 Financial costs (156,831) (39,362) (115,448) (311,641) (264,790) 272,539 (303,892) Participation in profit (loss) of associates and joint ventures that are accounted for using the equity method 2,603 - (274) 2,329 526,404 (526,210) 2,523 Exchange differences 3,402 (8,953) (64,060) (69,611) 36,855 3,819 (28,937) Result for readjustment units 3,609 405 203,820 207,834 366 - 208,200 Profit (loss), before taxes 533,091 1,459 343,693 878,243 449,726 (558,320) 769,649 Income tax expense (257,919) (4,703) (57,252) (319,874) 41,324 - (278,550) Profit (loss) 275,173 (3,244) 286,441 558,370 491,050 (558,321) 491,099 Profit (loss) from continuing operations (2) 638,109 44,308 337,236 1,019,653 (90,150) (2,668) 926,835 EBITDA determined by segment (3) 990,487 133,861 509,640 1,633,988 (87,832) (4,394) 1,541,762 Information Data (USD Thousands) Business Unit (operating Segments) Adj. and Elimin. Total CMPC Pulp Biopackaging Softys Total Other (1) Assets 11,678,303 1,948,683 3,730,134 17,357,120 4,128,534 (4,549,983) 16,935,671 Investments accounted for using the equity method 43,811 - - 43,811 - (5,382) 38,429 Increases in non-current assets (2) 688,099 47,404 238,086 973,589 15,675 - 989,264 Liabilities 4,689,553 1,089,764 2,574,180 8,353,497 5,134,001 (4,350,991) 9,136,507 Raw material and supplies (2,019,535) (817,471) (2,091,738) (4,928,744) (5,427) 320,989 (4,613,182) Employee benefits expenses (267,591) (142,096) (463,157) (872,844) (56,652) - (929,496) Depreciation and amortization expense (329,630) (89,553) (172,404) (591,587) (2,318) 1,725 (592,180) Other significant non-cash items 95,434 - - 95,434 - - 95,434 Impairment losses of assets recognized in profit or loss (3) (5,573) (2,559) (5,914) (14,046) - - (14,046) Reversal of impairment losses of assets recognized in profit or loss (3) 24,544 3,777 4,381 32,702 - - 32,702 Cash flows from operating activities 756,424 146,848 231,213 1,134,485 (90,787) 1,898 1,045,596 Cash flows from investment activities (606,144) 16,306 (129,494) (719,332) 578,293 (597,100) (738,139) Cash flows from financing activities (152,567) (162,131) (111,387) (426,085) (641,254) 595,212 (472,127) (1) Corresponds to the operations of Empresas CMPC S.A. e Inversiones CMPC S.A. not included in the main segments. (2) The increase in non-current assets does not include financial instruments, deferred tax assets or rights derived from insurance contracts. (3) Losses and reversal of impairment losses include the effects of provision in trade debtors, Inventories, Biological Asse ts and Property, plant and equipment. (1) Corresponds to the operations of Empresas CMPC S.A., Inversiones CMPC S.A. and other subsidiaries of the holding company t hat have not been included in the main segments. (2) Corresponds to income (loss) before income tax expense, financial income and costs, exchange differences, income (loss) pe r unit of adjustment, other income (loss) and equity in income (loss) of associates and joint ventures accounted for using the equity method. (3) Corresponds to Gross profit plus Depreciation and amortization, plus Cost of formation of harvested plantations, plus high er cost of the exploited and sold part of the plantations derived from the revaluation due to natural growth (see note 13: Biological assets), minus Distribution costs, minus Administrative expenses and minus Other expenses, by function.
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29 December 2023 Income Statement Data (USD Thousands) Business Unit (operating Segments) Adj. and Elimin. Total CMPC Pulp Biopackaging Softys Total Other(1) (1) Revenue from external customers 3,293,578 1,169,297 3,633,539 8,096,414 3,402 - 8,099,816 Revenue between operating segments of the same entity 288,830 28,504 552 317,886 52,397 (370,283) - Revenue from external and related customers 3,582,408 1,197,801 3,634,091 8,414,300 55,799 (370,283) 8,099,816 Cost of sales (3,082,149) (1,061,188) (2,500,731) (6,644,068) (3,165) 301,705 (6,345,528) Gross profit 500,259 136,613 1,133,360 1,770,232 52,634 (68,578) 1,754,288 Other income, by function 229,032 - - 229,032 - - 229,032 Distribution costs (75,344) (36,268) (313,763) (425,375) - 6,866 (418,509) Administration expenses (199,768) (65,174) (193,352) (458,294) (135,302) 62,562 (531,034) Other expenses, by function (29,648) (23,697) (274,365) (327,710) (4,155) 3,100 (328,765) Other income (expense) (104,131) (7,271) (35,597) (146,999) (10,416) 8,096 (149,319) Profit (loss) of operational activities 320,400 4,203 316,283 640,886 (97,239) 12,046 555,693 Financial income 51,681 8,458 19,385 79,524 247,333 (249,060) 77,797 Financial costs (134,619) (44,097) (101,862) (280,578) (235,168) 250,964 (264,782) Participation in profit (loss) of associates and joint ventures that are accounted for using the equity method 361 - 135 496 439,548 (439,165) 879 Exchange differences (7,740) (9,044) (188,342) (205,126) 112,425 571 (92,130) Result for readjustment units 1,363 664 310,828 312,855 109 - 312,964 Profit (loss), before taxes 231,446 (39,816) 356,427 548,057 467,008 (424,644) 590,421 Income tax expense (48,552) 18,624 (93,479) (123,407) 3,233 - (120,174) Profit (loss) 182,894 (21,192) 262,948 424,650 470,241 (424,644) 470,247 Profit (loss) from continuing operations (2) 424,531 11,474 351,880 787,885 (86,823) 3,950 705,012 EBITDA determined by segment (3) 799,684 102,682 506,225 1,408,591 (84,659) 13,058 1,336,990 Information Data (USD Thousands) Business Unit (operating Segments) Adj. and Elimin. Total CMPC Pulp Biopackaging Softys Total Other (1) Assets 11,196,324 1,975,616 3,730,107 16,902,047 4,251,215 (3,975,954) 17,177,308 Investments accounted for using the equity method 696 - - 696 - - 696 Increases in non-current assets (2) 861,188 78,664 384,947 1,324,799 14,116 - 1,338,915 Liabilities 4,463,260 1,019,712 2,628,158 8,111,130 5,159,722 (3,978,441) 9,292,411 Raw material and supplies (2,189,674) (909,452) (2,349,069) (5,448,195) (3,164) 301,086 (5,150,273) Employee benefits expenses (274,237) (125,951) (459,383) (859,571) (58,029) - (917,600) Depreciation and amortization expense (294,461) (85,021) (154,345) (533,827) (2,164) (9,108) (545,099) Other significant non-cash items 38,223 - - 38,223 - - 38,223 Impairment losses of assets recognized in profit or loss (3) (142,603) (1,904) (20,814) (165,321) - - (165,321) Reversal of impairment losses of assets recognized in profit or loss (3) 22,277 2,188 1,882 26,347 - - 26,347 Cash flows from operating activities 466,601 182,289 250,305 899,195 (42,938) (1,517) 854,740 Cash flows from investment activities (576,080) (67,905) (352,627) (996,612) 284,201 (264,933) (977,344) Cash flows from financing activities 59,372 (98,941) 203,672 164,103 (221,457) 266,450 209,096 (1) Corresponds to the operations of Empresas CMPC S.A. e Inversiones CMPC S.A. not included in the main segments. (2) The increase in non-current assets does not include financial instruments, deferred tax assets or rights derived from insurance contracts. (3) Losses and reversal of impairment losses include the effects of provision in trade debtors, Inventories, Biological Asse ts and Property, plant and equipment. (1) Corresponds to the operations of Empresas CMPC S.A., Inversiones CMPC S.A. and other subsidiaries of the holding company t hat have not been included in the main segments. (2) Corresponds to income (loss) before income tax expense, financial income and costs, exchange differences, income (loss) pe r unit of adjustment, other income (loss) and equity in income (loss) of associates and joint ventures accounted for using the equity method. (3) Corresponds to Gross profit plus Depreciation and amortization, plus Cost of formation of harvested plantations, plus high er cost of the exploited and sold part of the plantations derived from the revaluation due to natural growth (see note 13: Biological assets), minus Distribution costs, minus Administrative expenses and minus Other expenses, by function.
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30 GLOSSARY • Biological assets: Forestry plantations which are supposed to be used as raw materials for pulp production, sawing logs and other solid wood products. • YoY: Year over year, compares current quarter with the same quarter in the previous year. • CAPEX (capital expenditures): The amount spent on acquiring or improving productive assets such as buildings, machinery and equipment, or vehicles, with the purpose of increasing the capacity or efficiency of a company. • Cash Cost: All direct and indirect costs associated with the production of a ton of pulp. It is calculated as: wood + chemicals + energy + materials + remunerations. • Bleached Eucalyptus Kraft Pulp (BEKP): Pulp from eucalyptus wood used as a raw material for a wide range of papers. • Bleached Softwood Kraft Pulp (BSKP): Pulp from pine wood used as a raw material for a wide range of papers. • CIF price: Export price which includes the cost of transport to the destination port (CIF=Cost Insurance and Freight). • Stumpage: An expense recognized at the time of harvesting and selling a forest associated with the formation of the harvested property. • Gross debt: Bank debt and debt securities, long and short term, issued by the Company. • Net debt: Financial debt that cannot be settled with cash. In other words, short-term financial debt + long-term financial debt - cash - cash equivalents. • EBITDA (Earnings before interest, Taxes, Depreciation and Amortization): Valuation of the operational cash flow. It is obtained by subtracting the fixed expenses from the contribution margin. • Functional currency: Currency used by the Company for accounting purposes according to IAS 21. • Lease liability: Debt related to long -term lease agreements according to the IFRS 16 norm which came into effect starting January 2019. • Post collateral: The payment that the company is obliged to make in the event that the market value of its financial instruments (derivatives) exceeds certain thresholds previously agreed with the counterparties to these coverages. • P&W: For its acronym in English, Printing & Writing, are all printing and writing papers. • Debt ratio: Ratio of the company’s total debt to the Company’s equity. • Quick ratio: Measure of a company’s ability to meet its short-term obligations defined as its ability to convert assets into cash. • QoQ: Quarter over quarter, compares current with previous quarter results.