Empresas CMPC S.A. (CMPC) Earnings Call Transcript & Summary

Good morning, everyone. On behalf of CMPC's team, I would like to welcome you to our Seventh Investor Day. 2021 has proven to be a positive year so far, posting an important recovery by the end of the third quarter comparing to a challenging 2020. Higher pulp prices and good operational performance have contributed to the end with a strong financial and liquidity position. This has allowed us to continue advancing in the execution of our strategy. We recently announced the Bio CMPC project and the Carta Fabril acquisition, which put us one step further in our goal to continue being a leading player in the businesses where we participate. We're excited to be able to show you our strategy and the initiatives that we are implementing to continue generating value to all of our stakeholders. I would like now to review the agenda for the day. We will start with Raimundo Varela, our Pulp CEO. Raimundo will update you with our view in the pulp market and our strategy going forward. After Raimundo, Felipe Arancibia, Softys CFO, will cover the main drivers and initiatives that they are executing in that business division. We will continue with Francisco García-Huidobro, CEO of the Boxboard division. Francisco will explain the strategy of the Biopackaging business, on how each of the 4 business units are taking advantage of market trends and opportunities. We will continue with Felipe Alcalde, our Chief Innovation Officer. Felipe will talk about the innovation and digital transformation at CMPC. Finally, we will end with Francisco Ruiz-Tagle, CMPC's CEO. Francisco will provide a broad overview of the strategy and will explain the main initiatives that we are implementing in the company. After each presentation, we will have some time for questions to each of our speakers. [Operator Instructions] Finally, please note that statements made today during the presentation and Q&A may include forward-looking statements, which are subject to some risks and could cause actual results and events to differ materially. Also, statements during this event are based on the management's view as of today, and it is anticipated that future developments may cause these views to change. Please consider the information presented in this slide. With that, I will now pass it on to Raimundo. Raimundo, please you can start with your presentation. Thank you so much.

Thank you, Ignacio. Good morning to everyone. It's a pleasure to be here with you. I will talk today about CMPC cellulose, which includes our pulp and our wood products business. First, we'll take a look at the context of the market this year, then what we expect in the short to medium term, then a quick look at our strategy, our operational excellence program, our commercial strategy and our growth plans as well and a quick look at some of the things we are doing in innovation. What happened this year in the first half of the year, I think this year has been quite different from others. And in China, in particular, we have a first half of the year where the global market started to recover very strongly during the first half of the year, achieving record prices that were achieved in the second quarter across all grades of market pulp, especially in China, as I said. The main drivers for this to happen was the economic recovery. This pushed the commodity prices up across the commodity spectrum. We also have exchange rate appreciation, and we have quite a strong increase in China paper production. Another relevant factor for the situation that happened is the logistic crisis, under logistic crisis that is still affecting the world has to do with a few things. One is port productivity, dropped to 25% globally, in part because of the COVID pandemic. Schedule reliability dropped from 75% to 30% at this chart above you see is showing. And the freight rates skyrocket for the different type of vessels, but in particular, for containers. In the meantime, in Europe during the first half of the year, the prices were hiking, but not at the same speed as China because of the economic recovery in Europe was much, much lower compared to China. And we -- also because of the stricter restrictions in place due to COVID. On the other hand, in the second half of the year, we have had quite a different situation. There has been severe logistic problems that affect the Chinese exports. So basically, the Chinese have not been able to export much paper. In addition to that, they have the energy control policies, and this led to more production curtailments affecting paper demand and pulp demand. And as the chart below shows, the paper production dropped 7% month-to-month compared -- in September compared to the previous year. On the other hand, in Europe, during the second half of the year, we have a quite strong paper demand in part favor by this lack of Chinese -- competition from the Chinese export. And therefore, the pulp stocks in European ports have been reducing during the year, reaching the levels of a couple of years ago. And therefore, what we have had in Europe is price stability. So during the second half of the year, we have price reductions in China and price stability in Europe. Now what to expect in the short to medium term? We see a healthy pulp market. We expect that the market is going to grow by 10 million tons by 2030. So in the period between 2020 and 2030, we expect a growth of 10 million tons divided basically in 6 million tons of growth in short fiber, 2.3 million tons of growth in long fiber and 1.4 million tons of growth in unbleached pulp. Regarding where this growth is going to happen, as expected, China is expected to take a lion's share of this growth with about 70%. So 7 million tons of this growth is going to happen in China. Then we have other regions where growth is relevant is in North America. We expect 1 million tons of growth in this period. Eastern Europe, 900,000 tons; Latin America, 800,000 tons. And then in others, 1.7 million, which is basically the other Asian countries, as well as the Middle East and Oceania. We have a reduction in the demand in Western Europe of about 1.7 million tons and a marginal reduction in Japan. In which paper segment, we expect this growth to happen and why? In the Packaging segment, as expected, we see a relevant growth of 3.6 million tons. This is -- basically, this happens because of the e-commerce, climate change and also in part because of plastic substitution. Other relevant segment is the specialty where 1.9 million tons of growth we -- is expected. This also has to do in part with the plastic substitution and other kind of niche markets. And then the most relevant segment continue to be tissue, and that is expected to take 7.2 million tons of growth due to higher hygiene standards, global standards. On the other hand, the printing and writing segment, we expect that is going to continue to decrease by about 3 million tons in this period. And this is mainly due to digitalization. If we take a look at the ratio between capacity and demand in the different years, we expect the market to remain around the 90% of ratio. In the year 2021, we've seen a ratio relatively high, 92.5%, hence, some of the high prices we have seen. We expect this to drop to levels of 89% -- 88.6%, 89%, in the year '23 and '24. So these 2 years are expected to be challenging years because we have several projects that are coming in. But then by 2025, we expect this to be about 91% again. So in summary, I think what we can -- the takeaways for the pulp market is that we expect the demand to grow 10 million tons between 2020 and 2030 and the trend behind is the e-commerce plastic replacements and the higher standards in global hygiene. The demand to capacity ratio is expected to remain healthy at about 90%. We do have, and we expected that this is going to continue, uncertainty in the short term, COVID, the economy, politics and logistics. I think this is going to continue to give us some kind of headache. On the other hand, there are positive trends in the post-COVID area, like the e-commerce, which is affecting in a positive way the board segment. We do have less consumption of printing and writing. This affect the availability of recovered paper and kind in the margin benefit, the pulp market. If we take a look now at our strategy, we will look at our operational excellence, then commercial excellence and then growth. Our operational excellence program is called best, it's our way of working. And we aim to position CMPC as a world-class company in operational excellence. And we will achieve these 3 -- through 3 clear objectives. We guarantee the safety of our people, ensuring social legitimacy and maximizing economic efficiency. Those are the 3 pillars. And our best model have 4 clear parts. One is established common objectives, then efficient our process and standardize processes as much as possible, develop our people, especially with this mentality of continuous improvement. And then the fourth pillar is continuous improvement and innovation, where we are also doing great stuff, I will mention a few of them, and Felipe Alcalde is going to go into more details later on. We remain having very relevant competitive advantages as a company. We have a very competitive distance between our forest and our mills, both in Chile and in Brazil, our pulp mills. And also, we have very competitive distance and transportation mode between our mills and the ports, both in Chile and in Brazil, different transportation modes, where both of them very competitive. This plus, of course, our forest advantage makes us very competitive in the cost curve worldwide, both in long fiber and in short fiber. This in a commodity like pulp remains to be extremely important, and we are very conscious of that, and a lot of our operational excellence programs aim to maintain that advantage. This is another part of the same concept, which is operational excellence at our forest part where we have several programs that allow us to maintain our leadership position in the amount of fiber we produce on every hectare per year. And our eucalyptus fibers, both in Brazil and in Chile are world-class in terms of our productivity. And in terms of the radiata pine, we're also leaders worldwide compared with our peers in the other countries that produce long fiber. This is due to quite a lot of research and development that we have done throughout the years, and we continue to do. Another very relevant theme for us is our operational excellence at our mills. And we measure this by our -- the overall equipment efficiency, OEE. And we aim to improve this by 11 points in 7 years between 2018 and 2025. And this chart shows some of the progress we have made. In the right -- in the upper right-hand side, you have the Guaiba mill. Here, we have increased our OEE significantly 22 points in line 1 and 44 points in line 2 in terms of the overall growth. In Santa Fe mill, we have also improved. We still see several opportunities here. We have had -- this year has not been that good in that mill, but we have a very good plan to improve that. In Laja mill, we have had a very strong performance in the last years, and we are achieving OEE levels at about 84%, 85%, which are extremely good. And also, just to show in our plywood mills in the wood products business, we are also implementing this program with very good success and achieved OEE of 75%, which is already 2 points above what we had a few years ago, and we aim to increase that by another 4 points by 2025. A fundamental part of our activities also have to do with safety. And this is also very much a pillar and a value in our company. And we aim to reduce our level of accidents as this chart is showing. We have -- we're doing several activities and programs in order to get these results, and we are already achieving good results. This year compared with last year, our frequency index have improved. And also if you look at the previous year, every year, we improved, but we will never be happy with this until we have 0 accidents. So we have plans. We have established a new critical security procedures. We have established a risk factor training program with DuPont Company, which is a world-class company. We have established a lot of project implementation and several other activities that will help us to continue improving in safety at all our operations. In terms of sustainability, we are advancing in our public commitments. One of them is the water reduction or the reduction in the use of industrial water. We aim to reduce this by 25% by the year 2025. And so far, we have advanced 23% of this -- we have achieved 23% of this goal. And we have very good plans and projects so that we can achieve what we promised by 2025. One of them is the Bio CMPC project that I will mention. Also, we have some plans at our Laja mill, at our Santa Fe mill and also at our Pacifica mill. So in all of them, we have initiatives and projects that will allow us to continue progressing on this. Another relevant sustainability goal is the reduction of emissions. We plan to reduce by 50% absolute greenhouse emissions by 2030. So far, we have progressed 25% on this goal. And we also have, as part of the BioCMPC project, we will reduce the coal recovery boiler, and this will be a significant help in achieving this goal. And another part of that is probably going to be to replace fossil fuel to gasify biomass in the lime kilns at our pulp mills. This is also part of the projects we are developing, and we will tell you more as we progress. Regarding waste, we aim to achieve zero waste to final disposal by 2025. So far, we are progressing well on this goal. We have 24% of achievement. And actually, at Laja, we already have achieved this by 100% and Santa Fe by 94%. So we are progressing quite well in this theme. Now very briefly, let's talk a little bit about commercial strategy and excellence. First, we take a look at our pulp commercial strategy. In pulp, we base -- our key advantage is our very, very strong relationship with our customers worldwide, which is a value not very much appreciated by our customers and by the market. We have geographic diversity, which is clearly an advantage with presence with mills in the Atlantic and the Pacific Coast. We are extremely proactive in our customer service, and we -- every year, we aim to improve this. We have our sustainability where we think we are very strong, and I mentioned some of that just now. We also have quite a lot of flexibility, and we are able to satisfy our customers when that is required. And we have a fiber basket with long fiber, short fiber and as well some new product development that I will mention soon. We have also implemented a capillarity plan in the different markets, meaning having a quite diverse group of customers in each country, aiming also to have small customers as much as we can. And this helps us, of course, to provide a better service. Regarding our wood products division, in the commercial part, we aim to increase our participation in the construction segment, and I will mention our new form company-owned initiative. This has to do, of course, with getting more involved in the construction segment. We have also implemented value-added and diversification initiatives with several products like thermo mechanical treated wood, impregnated fire retardant, a plywood of metric size, et cetera, looking to satisfy customer needs in different markets. We have also improved our clients' experience through the launch of our digital channels that we are piloting in one market, and we aim to expand to other markets. A very important part for us is also to measure customer satisfaction. And what we do is we use a very wide questionary that the company index provide, and we have been using this for the last 3 years. And we have achieved very good results. This is our -- the slide I'm showing now, it shows the results for the pulp business, where we have achieved 85 points, which is very, very good in 2019 and the same results in 2020. And the important part here is that we measure this in 12 dimensions, environment -- including environment, social aspects, both internal and external, corporate governance, et cetera, besides measuring the typical thing that you will expect in customer satisfaction. And from this, we take action plans, very tailor-made action plans for the different markets so that we can communicate better what we do, for example, in the environment or in the social aspects. Because what we see is that the customers, every year, they want to be more aware, they want to be more involved in what we do as a company in all different aspects. And we're very happy to share that with our customers. The same we have done in our wood products business. And here, we have also achieved very good results in the year 2019, which is 82 points of satisfaction. And last year, we achieved 86 points of satisfaction. So very happy with that improvement. And also here, we also measured the same 12 dimensions. And from that, we take plans to improve by market and by segment. Regarding our growth plans, I think you are already aware because we announced this. Our BioCMPC projects in Brazil at our Guaiba mill. It's a very relevant investment for us, $530 million. This will increase the production capacity of our line 2 by 350,000 tons. That line will reach 1.85 million tons per year. So -- but besides that, we will reduce our cash cost in line 2 and also by taking out the coal boiler, we will also decrease the cash cost of the line 1. So in that front, it's a very good project. And more importantly, we will also reduce the specific water consumption, which is very important. We will reduce the greenhouse emissions. We will reduce our effluent, and we will also improve in the smell aspect, which is always something that we are concerned because it's is a concern of our communities nearby our mills. We are advancing very well. In this mill, we also already communicated that we are awarded the -- all the main parts to the Valmet company. And the wood yard was awarded to a Brazilian company called Demuth. This project is advancing well, and the start-up is expected for Q4 2023, and we do not expect to have delays. Regarding forest growth. In Brazil, we have been growing our forest base. We have grown by 80,000 hectares during the last 2 years. And this, of course, is aimed to feed our BioCMPC project but also to feed potential future growth in a greenfield in Brazil, which is something that is part of our plans. We have nothing to announce yet, but we are growing our forest base and preparing for potential expansion. I mentioned -- as I mentioned before, in our wood products business, we aim to continue adding value to the market and leading. And that's why we have launched Niuform, which is the first construction company that is focused in CLT and laminated beams in Chile. And we are receiving an extremely good response from the Chilean market. There is a lot of interest in this kind of construction because of all the advantages that it has in terms of circular economy, in terms of -- also in terms of productivity. Of course, the buildings and houses built with wood have extremely -- they're extremely nice and beautiful, et cetera. So have several advantages and we are very happy with the response that we have received from the market, from the architects communities in general, from the construction companies in general. This is going well. It's a small company, but we see very good future for this in Chile and potentially also abroad. Another aspect that we are -- we have been working is wind generation projects. This is attractive to CMPC. They say that they create value and complement our forestry activity. And we are developing one project at the moment, which is El Almendro. I think this was already announced as well. It's 120 megawatts with an investment of $130 million, and it's progressing well. It's still in the starting phase, but we are already preparing for entering to the commercial approvals. And regarding innovation, I also mentioned that we have been working more on this in the last couple of years and very strongly this year. And we have made advances. We are producing some pulp with different bleach grades and also with different softness and strength targeting the needs of our customers in the different segments. We have also worked in the microfibril segments, working with our affiliated company, Softys, and they have been able to reduce the use of long fiber to produce their tissue, giving them some advantages. And we see that this is potentially is a technology that we can expand to other customers in worldwide. And we are also evaluating the feasibility of using this similar technology applied to our sub-craft business as well as Boxboard. And of course, this can also be then applied to other customers in other geographies. We are also advancing in digitalization, in Guaiba in particular, we have installed what we call a 4.0 room, where we are already increasing our -- through this constant monitoring and advanced analytics models, we are increasing -- has helped us to increase our productivity to automate some processes so our people can dedicate more time to improvements. And we are very optimistic that this will continue to provide us with good results, both in Brazil and also in our Chilean mills. And in our Wood Products division, I mentioned some of this already, I think. We have also been working with value-added products that help us to innovate and also to diversify our product portfolio. Some of the examples are waterproof products, also some impregnated products that help us in the durability. Thermo-treated wood that although has several advantages, including also durability. And this has had very good response from the market, both in different areas now where we sell in the U.S., in Europe and also in Latin America. That's my presentation. Thank you very much and open for questions.

Thank you, Raimundo, for your great presentation. We will now start Raimundo's Q&A session. [Operator Instructions] I'm still not seeing any questions. So I will start with one of my own. So when do you think that all logistic issues will be resolved? Do you think that the resolvement of these logistic issues are what needs to solve or to close the European-China price spread?

Yes, it's a good question, Colomba. I think that the logistics issues will stay with us for a while. I think this has stabilized. The worldwide supply chains is slow. We expect this to probably be with us maybe all of 2022 or at least 3 quarters of 2022. . So a year from now, we should have a more balanced in supply chain. I'm talking about worldwide, not only our own. And I think that the price gap between China and Europe will reduce. What we have now is not sustainable, in part because of the -- of some softness on these logistical issues but also because we expect some recovery in the Chinese price, probably in Q1 next year and probably some softness in the European price during the same period. So that will close that gap and bring it to more logical levels.

We will take the next question from George Staphos.

My 2 questions are on innovation, if you can hear me. The first is, have you thought more about perhaps fluff production over time. Given the company's obvious participation in consumer and personal care markets, there'd be some potential synergy there. And then secondly, with cross-laminated timber, what are your studies showing in terms of the size of building that could be built? We've heard anywhere from 16 to 18 stories being utilized right now? What does your data say? So one question on fluff and one on CLT?

I couldn't catch the first question very well. Did you, Colomba? The first question was something related with innovation in pulp, but I couldn't really...

Yes. George, can you please repeat the first question? We didn't hear it clearly. Thank you. George? Raimundo, you can answer the second one.

The second one, okay. The second one question regarding the size of the buildings, I think in Europe or in the U.S., I think they already have the authorization to -- for high-rise buildings, and some projects are already going on, not yet in Chile. I think in Chile, we can go to 8 stories, if I'm not wrong. And we expect that to change, but it will take some time. I think we are cautious with that. And at the moment, we have several projects to build the houses and also 2 to 3-storey buildings. And because this is still a relatively small venture. We are very much fully booked in -- for next year. But we are working with several companies to potential -- to develop projects for the later part of next year and also for 2023.

Yes. The second question -- sorry, the first question from George was, if we were thinking about producing fluff considering that we produce tissue paper and personal care products? So there's a synergy there.

Yes. Yes. We look fluff with interest. I think it's something that we could potentially do. We have done it in the past, but we have not taken a decision yet, but we do look at that market with some interest.

I have another question from Carlos. Are there any signs that the pulp prices may have found a floor in China? Are your clients restocking or putting new orders?

I do think so. Yes, I think there are signs of that because November was better in terms of the -- especially the speed at which the contracts were -- or the sales were done, I think that's always a relevant measure. And I think in November, I think we closed business by the 15th of November, we have already sold all the pulp of that month. So that was much better than September and October. And I think we have also done that at a stable price. No change unchanged prices compared with last month, which is good. So I think we are seeing great signs of stability and slightly better demand, slightly better demand.

We have one last question here. Can you please address Brazilian market demand for pulp. How is that market evolving?

The local Brazilian market?

The local Brazilian market, yes.

I think the local Brazilian market tend to follow the European market. So prices in Brazil for pulp are relatively high. The demand for paper, I think, has been relatively strong towards the year, but some sign of weakness we are seeing lately. Nothing to worry, but I think as a response of the high prices of pulp in Brazil, which as I said, are linked to Europe. We are seeing some impact on the paper demand there.

Okay. So with that, thank you, Raimundo. Thank you for your presentation and the Q&A session. We will now see or watch a short video and then we will go with Felipe Arancibia's presentation. [Presentation]

So here now, we have Felipe Arancibia, and he will go with tissues or Softys presentation. Felipe, you can now go ahead.

Good morning to everyone. It's a pleasure to see you again in this CMPC Investor Day. Things has changed dramatically since the last time we spoke in November 2020. As you may see in this image, today, we will use the analogy of a sailor in the sea throughout this presentation because we believe it reflects very clearly what we have experienced in the past 12 months. Before beginning this presentation, I would like to start by remembering the lives of our workers who have fatally faced COVID-19 and send our deepest condolences to their families. I would like to divide this strategic update presentation, which we titled steering through the storm in 5 parts: starting with Softys at a glance, then walk you through how we started this change in year 2021, coming from the optimism of the very positive 2020; then to talk about the unprecedented changes in the market with price hikes in raw materials, reaching all-time highs; our plans to face this crisis then pointing the most relevant actions taken to offset the negative effects; and then driving the strategic initiatives we are working on to recover our performance in the short run and transform the company in the midterm with important decisions made to tackle a challenging environment in Latin America. In this slide, you can see our current market position. We have commercial presence in more than 15 countries in LatAm with 18 plus 2 production sites in 8 countries, including the 2 sites of our recent acquisition of Carta Fabril, positioning us the largest tissue producer in Lat Am and fifth one in personal care. We employ more than 10,000 employees and have a strong and well-positioned brand portfolio combining a mix between regional such as Elite, Babysec or Ladysoft and local ones like Higienol, Premier, Ideal, Duetto or Sussex, confirming our belief in adding value to our consumers and clients through our brands. With the recent acquisition of Carta Fabril, we'll be adding new brands to the Softys family, such as Cotton, Deluxe and Social Clean, among others. In terms of the main figures, Q3 last 12 months sales reached USD 2.1 billion with a 15% growth year-over-year, and Q3 last 12-month EBITDA of USD 216 million with a 10% margin. In the share of the slide, you may see our last 12-month production in tissue, diapers and feminine care products highlighting the growth in tissue and diapers in spite of the strong 2020 volumes. At the bottom of the slide, you will find the breakdown of our main business units showing that consumer tissue revenues have grown 2.7% last 12 months. away-from-home business, which has been severely affected by lockdowns has been strongly recovering due to the reopening of the economy, but still decreasing 1.1% last 12 months. And in the case of the personal care units, revenues are up 5.2% last 12 months. I'm sorry, this is the other way up. Although in 2020, we end up sailing with a favorable wind at the beginning with the outbreak of COVID-19 in March 2020 throughout Latin America, uncertainties spread across the region with the most unimaginable consequences for different sectors of the economy. Looking back with a rear view mirror, everything makes sense or seems to be understandable today. But at the time, we struggled to decipher how was COVID-19 going to affect the hygiene and personal care sector. Okay. When you put everything we experienced in 2020 on a scale and start analyzing the different nature of those effects, we must say that although we found very negative consequences such as a strong FX negative impact in LatAm or the fall of the away-from-home business, the certainty to the beginning began to transform into what end up being the most profitable year for the hygiene and personal care sector. Just to name a few examples of this, take this really concern for hygiene due to sanitary reasons or the boom of e-commerce due to lockdowns, among others. Unprecedented storm, but unexpectedly, the wind change in the blink of the eye. It's true that in our industry, we're used to live with a cyclical nature of pulp price. But what we saw in the mid-February 2021, was an unprecedented spike, not only of pulp price, but also all different components of our personal care business. In a couple of weeks, we were in the middle of the storm without notice and a new our reality appear in front of us. We believe we are in front of the worst raw material prices in the history of the sector. What made this price show particular, that is done in less than a quarter to be more precise in almost 45 days, we found ourselves in a high-cost scenario. For example, pulp price, 32% up. Our raise in personal care business with nonwoven, up 80%; superabsorbent polymers, 65%; and plastic films, 80%. It's not only about the rise but more about the speed of the rise. If you go back to the last raw material stress in the industry experienced in 2017, 2019, the rise took more than 5 quarters rather than half a quarter as in this occasion. Due to this dynamic, the margins squeezed almost immediately, positioning the industry in a very complex situation. The disruption in the supply chain, oil price, ports logistics, maritime roads and energy costs have created an impressive cost inflation across different sectors and the region. Together pulling the ropes. When you find yourself in the middle of a storm, the survival instinct activates, and you start pulling the ropes to accommodate the sails in order to steer the ship in the right direction. The cost of raw materials took in some supplies a very short period of time to be reflected in our P&L. The first action taken by the company was price increase across the region and business unit because, as I said before, the crisis impacted all of our categories. This is why you can see in this slide that price increase in our top priority, and we will continue taking new actions in revenue growth management. I must say we have been quite successful in this initiative, increasing revenue as well as volume, which shows the strong equity of our brands in the consumer minds. In parallel, we established a cost and expense savings plan named Softys on track, SOT. The SOT program has grown more than USD 100 million of savings to the table with a continuous follow-up to make ourself sure we will meet its target. Moreover, we have been raising the bar in operational efficiency in terms of higher overall efficacy equipment and start targets in personal care. But every cloud has a silver lining. Our vision for the coming quarter, it is that supply chain and raw materials costs will normalize. And with our revenue growth management strategy, we will be able to recover the structural margins. Beside the cost crisis that the industry is facing, we continue to build our future. And I want to share with you today our most relevant plans and initiatives. Let me show you in the following slides important pieces of our strategy looking forward. After a couple of years of operating the businesses with the current corporate structure, we realized new challenge, we are appearing for the future to achieve our goal of consolidating as market leader in Latin America. We have created a new division, named Business Transformation that will be led by Mr. Pedro Urrechaga, one of our most experienced executive that has been working with Softys for more than 20 years. Inspired by the new reality of the business, we expect to become a benchmark in terms of agility, digitalization and cost. We have also reassigned some responsibilities to give more focus in brand building, consumer knowledge, go-to-market and innovation process to our 3 business units. We believe this new structure gives us the skill to capture the huge opportunities in Latin America market. Another strong pillar in our strategy is accelerating Softys digital transformation as well as developing an innovation culture within the company. This is why we are strengthening our e-commerce D2C across the region as well as setting a bold strategy to tackle this channel in almost every country in Latin America. We are well aware that in the first 2 months of the pandemic, e-commerce advance, the equivalent to the last 10 years, and this is why we accelerated the development of this channel at the Softys LatAm. This trend is here to stay. Also about digital, the data and analytics department we created last year, will be working for the Business Transformation division to leverage its development. We are challenging ourselves to find new value proposition for our consumers and clients, starting by the use of our own data. Because we believe in innovation, we launched the third Softys innovation challenge, a competition open to all Softys employees. The second version of the competition received over 500 ideas that we will submit in the assessment process via our innovation committee. Another good example of innovation is our Softys innovation week. This year, we had the honor to present a key speaker, Mr. Yuval N Harari, Israeli historian and writer, that remind us the new challenges that life after the pandemic will present for human beings. One of the strong conviction we have in Softys is our approach towards sustainability. And by this, I mean the relationship with the communities in which we operate and committing with challenging environment goals. I am proud to inform you that this year, we presented our second sustainability report that obtained the second place in the Hallbars Awards 2021 in its category, one of the world's most well-known awards for sustainability reports. We ascribed 2 CMPC goals, which are in line with the Sustainable Development Goals established by the United Nations. Our first goal is to reduce 50% our greenhouse gas emission by 2030, reduce 40% water consumption by 2050 and achieve zero waste to landfills by 2025. Water is so important to the world that, in association with the Amulen Foundation and the [ UC ] Innovation Center, we launched Softys Water Challenge 2020, an initiative that seeks innovative solutions to solve the scarce of water that millions of people suffer in the world. After almost 10 months of work and over 500 applicants from the more diverse geographies such as Israel, Gwanda or Belgium, we selected 3 winners, that besides an economic prize, will have Softys support to deploy their technology in a water scarce community in Chile and Brazil. I have the pleasure to present the following video showing the execution of the solution to won the first prize in our world challenge in 2 local communities in the south of Chile, [Foreign Language] [Presentation]

Everything we do at Softys embrace our commitment towards our consumers. We want to be present in every day and on every stage of their lives. This is why we are at all time rethinking our products and innovating to bring satisfaction to our end users. This slide shows the most relevant launches we have made in each of our business units. For instance, I would like to highlight our new Elite Eco in which we replace the plastic packaging by recycling paper, which is another commitment in connection with our planet's end consumer. Let's see the video of Elite Eco video. [Presentation]

Organic growth. As you have seen, the company has gone through an intensive phase of inorganic growth over the past years, which does not mean we are postponing organic growth. Here, you can see 2 of our most relevant capital expenditure, among others, in the Brazilian and Mexican markets. On the left-hand side, you can find our capacity expansion project in Mexico, which involves, let's say, a new paper mill of 60,000 tons for tissue paper in the market that is strategic for Softys. On the right-hand side, you will see the 3 new baby diapers line to be installed in Brazil in 2022. Two, in regular open diapers to support the momentum of Babysec in the market and our first line of baby pants in the region, which shows our commitment towards consumer strengths. This will allow us to be more competitive in Brazil and in Lat Am. We have recently announced an agreement to acquire Carta Fabril, one of the leading companies in the hygiene and personal care sector in Brazil. This acquisition adds 2 important sites to Softys: one, located in the State of Goiá dedicated to tissue; and the second one in Rio de Janeiro, with the new plans with great capacity to produce personal care products. We expected to close this transaction by the second quarter of 2022. With this acquisition, and Sepac, we are reinforcing our leadership and investing to transform our business in Brazil into a powerful platform able to unlock synergies with a new footprint that optimize logistic and create a robust value proposition for Brazilian consumers. Everything you have seen today has one clear inspiration, our business plan 2023, which works like a compass with a clear goal and great number of tangible initiatives that we'll follow up constantly to make this happen. As you may see here, these are the 5 pillars of our business plan. We have discussed about almost all of them. Our third pillar continues to be competitiveness, but we have restated its entire message us achieving our business transformation as leaders in costs through digital agility, looking for a step change in the way we operate our business. Last, but not least, we would like to summarize our top priorities for 2022 and after. Number one, we need to continue taking price action across the region and business units to offset raw material cost increase. Number two, establish a new cost and expense saving program with clear targets to reach our previous margins. Third, implement the business transformation we are planning, selecting the most cost-effective initiatives to assure we can operate in a more competitive and linear way in the coming years, most importantly, by accelerating digital transformation across the organization on exploiting revenue management as a competitive advantage. Fourth, continue to grow our personal care business with the new baby lines in Brazil and the [indiscernible] sites of Carta Fabril. Fifth, transform our business in Brazil through a successful integration of our operation, capturing the identified synergies. Last, but more -- most importantly, strengthening our brand portfolio to continue building the trust we want to deliver to the Latin American consumer. Thank you very much for your attention. And now I'm happy to answer any questions you may have.

Thank you, Felipe, for your great presentation. We will now start the Q&A session for Felipe. [Operator Instructions] I will start with the first question from the Q&A section from Carlos De Alba. Can you please provide some details on the investment that you recently talked about in Mexico and Brazil?

Okay. Thank you for your question. First, related to our recent announced acquisition of Carta Fabril in Brazil. There are a lot of rationality behind that. Number one is, because of the low per capita consumption in Brazil, it's about 6,000 compared with other markets related to 12 of 30, there are a lot of room for growth. This is number one. The number two is Brazil represent, roughly speaking, 1/3 of the total Latin America markets. Third, I would say that Carta Fabril is one of the leading tissue player in the southeast of Brazil. So combining with our current Softys operation, we already identified several synergies, for instance, cross-selling, let's say, footprint optimizations, distribution channel, best optimized the marketing investment, time to market between others. So we are pretty happy to this recent announcement. And as you mentioned in your question related to Mexico, we are looking into our organic capacity expansion because there is still room for growth again both in terms of, let's say, market share, but also in terms of per capita consumption in Mexico.

And a further question about that. When is the Mexico capacity starting up? When do you think it may start up?

It's difficult to say now because we are still analyzing. But let's say we are not going to see it so close in the time of period.

Okay. Perfect. And another question from the chat. On the cost saving initiatives that you mentioned, of the $100 million, how much has already been incorporated?

All of them is already incorporated. We can split in terms of the revenue management program. Let's say in the range of 60% of these total savings come from our revenue management program, and the other one is related to cost savings. But we are looking into more -- identifying more initiatives.

And one question from the chat. What's your view on the Brazilian tissue market? How it's been performing? How is demand? Can you please talk a little bit about that?

As you well know, Brazil is a really important country for us, has been quite difficult for the social and economic environment. However, we are quite confident. When you combine these 3, let's say, companies, Softys Brazil, Sepac and now Carta Fabril, we can have some leverage and we'll be able to capture a lot of synergies. So we are performing quite well in terms of volumes and in terms of revenues. And now it's the time to also capture all the synergies that we are talking about.

I will now take a question from the audience. George Staphos, you can now proceed with your questions. Your mic is open.

Great presentation. Two very quick questions. One, can you update us on when you would expect to get back to peak margins in Softys, either by year or by quarter, given all the initiatives that you have, the volume growth and also the addition of, hopefully, Carta Fabril? Second on that point, is it possible at all to discuss to quantify how much margin or return on capital Carta Fabril will have?

Thank you, George, for your question. Related to the number 1 question, as I mentioned before, in our last conference call, because of -- or due to still direct cost is increasing, we expect to recover some margin in Q2 -- at the end of Q2 of 2022. So we believe that we have incorporated all the price increases by the end of Q1, at the beginning of Q2. And combining with the raw material decreases, we'll be able to recover margin at the end of Q2 2022. And related to your question of Carta Fabril, as I mentioned before, Carta Fabril is a leading tissue player in Brazil with a high margin. So obviously, as soon as we can be able to incorporate it in our company, it can help us to increase the margin. But so far, I prefer not to comment on that and specific numbers on margin.

Thank you, Felipe, for your great presentation and the Q&A session. We will now watch a very short video, and then start with Francisco García-Huidobro presentation.[Presentation]

Thank you for being us to be here, Francisco. Now you can start with your presentation.

Good morning, everyone. Really glad to be here. I want to present now about our Biopackaging business. Basically, we offer packaging solutions from natural fibers that enable our customers to protect, to transport and to promote their products in a very sustainable way. We have 4 different businesses, first of all, boxboard. We produce folding boxboard. That means these boxes for cereals, medicine, chocolates, any box with a very high-quality printing. That business represents a revenue per year of about $467 million. Then we have the corrugated business with the recycling area. We have a containerboard mill here in Santiago and 3 conversion plants to produce corrugated boxes, all in Chile, 2 in Santiago, 1 in the South in the [ Cerna ] City. And we have as well molded pulp trays plant, which is producing basically trays for eggs, fruits, that kind of products. That business altogether represents about $330 million. Then we have sack kraft, which is an integrated business. We have kraft paper produced in the Laja mill, and we have as well 5 plants converting to produce multiwall sacks like the cement box, cement sacks or other kind of products. Then last but not least, we have our merchant EDIPAC is a paper merchant, which is selling box for -- to smaller customers to getting a good capillarity into the Chilean market and as well the graphic papers and as well retail bags into the market. That business represents about $86 million of revenues. As I mentioned, we are present in 4 different countries. Mainly in the paper sacks, we have 2 plants in Mexico, 1 plant in Argentina, another 1 in Peru and 1 in Chile. All the other businesses, the production sites are in Chile. We have altogether 13 different production facilities. We employ about 3,500 workers working directly with CMPC. And we have a very diversified portfolio, which we market our products in more than 70 countries with a very well-diversified portfolio of more than 4,000 customers all over the world. In terms of focus, our main focus is the growth but in a very profitable and sustainable way. The total revenue of this area is about $1 billion per year, and the EBITDA in the last 12 months was $154 million. This year has been quite positive. We have a strong demand. As you can see here, from the third quarter in comparison with last year, we grew in revenues about 13% and in EBITDA, 45%, in our business. Going a bit deeper in each of the businesses, let's start with Boxboard. All our businesses we have clear strategic priorities based in 4 pillars. First of all, operational excellence, commercial excellence, innovation and digitalization and growth. If we talk about Boxboard with 2 mills, Maule mill state-of-the-art mill, which produce 85% of our production at the moment. And we have a smaller one, which is very interesting, but it's older machine, but we have specialized that for old the innovation products. In that sense, first of all, with the operational excellence, in Maule mill, we are working to be cost leaders worldwide. We have a good availability and access to low-cost sustainable fibers. And with the machine, we are improving our efficiency, regaining efficiency. And our clear target is to be in the benchmark in a couple of years. And as an example, this year has been positive, and we have reduced our waste in the paper machine in about 20%. We have clear goals as well to reduce the water consumption. We're investing for that and as well to substitute oil boilers. We did it already in Valdivia mill very successfully. And now we are in the same process to try to get rid of the production of steam through oil that we still have a 15% in Maule to move that to biomass. Commercially speaking, main target is very clear, to maximize the margins, and very importantly, to keep a very diversified portfolio in terms of markets and in terms of customers. In that sense, we've been growing in a good way in the U.S. In the last couple of years, we doubled our sales in the U.S., and we believe we have plenty of good opportunities in that market. We want to maintain our position in Latin America, a leading position there, and to keep consolidating Europe, which has been very stable in the last few years. As well as keep seeding and growing in different markets, what we have done in Australia and Philippines, and we want to keep on that track. Always very close to customers and end users, co-creating solutions for their products. This business is very intensive requirements for certification, but I want to point out 2 different certifications here. One is the FDA approval. We got that last year and has helped us a lot to grow into the U.S. And the other one, which is very interesting, is the compostability certification, industrial and home compostability. This is mandatory for some customers in Europe right now, but strengthen our position as a very good option for replacing the single-use plastics all over the world. In terms of innovation, first of all, in products, we are really focused in barrier boards, grease barrier, moisture, steam. But the grease barrier is already -- we're producing that every month and growing our sales steadily all over the world, mainly centered into the food delivery and the fast food segments, which are growing very -- in a very nice way, replacing plastic trays. We are producing as well only for Chile at the moment some cup stocks for cold and hot beverages. In terms of processes, we -- about 3 years ago, we started with advanced analytics in our Maule mill in the fiber sec area. Now we expand that to the machine. And we believe that together with our operational management system best will help us to achieve the goals we have in terms of efficiency. Something which I like a lot is in the customer side, we had a very deep analysis about our customers' journeys. And we work together with agents, customers and our team. And we just launched this new platform, which is looking to get a better bonding with our customers and attend their needs. At the moment, we are receiving the orders through the platform. The customers are able to track since the order is placed, production, delivery in any part of the world. And we are adding new features like stock management, credit line management and many other features to come. Other areas of CMPC are starting the same process, and Fiber Place is going to be the platform for CMPC. And we are very proud of it. Moving to Sack Kraft. First, the focus we've been enhancing this business, we've been growing very well in this business and working very close with our customer co-creating solutions. In -- from the commercial point of view, of course, replacing plastic, but we want to grow in North America. We've been doing that, and we want to keep doing it. We have good opportunities there. We want to maintain our chair and participation in Peru and in Chile. And as well, why not to take the advantage of the Sack Weight Law which is coming now in Mexico and Argentina, which presents good opportunities for us. At the same time, we are looking into other higher margin segments to keep growing this business. From the operational point of view, we are expanding best to all plants. We have had good results this year. As you can see here, we reduced about 20% of waste in our operations. We increased our OEE in 7.5% this year. So we still have work to do, but we are definitely in a good path for it. In terms of growth, probably you have heard that we bought Samcarsa, which is the paper sack division of Grupo Calidra in Mexico. We bought as well 3 used lines in Europe, 1 was moved to Mexico, the other one to Argentina and the last one to Peru. And we are now waiting for a new cement line arriving next year in Mexico. And of course, we keep looking for new opportunities of growth. Altogether, this has -- helping us to get really interesting growth, and we expect next year to be over 1 billion sacks per year. In terms of innovation, as well replacing plastic is key, but we have different initiatives, the zero waste sack, which dissolve itself with the cement at the time of working. We are together with the leading companies in the pet food sector working to try to find out a solution with grease barrier for pet food, replacing the plastic bags. And in terms of processes, the same, online monitoring, more data, more analysis, plus base. And in terms of customers, next year, we're starting as well the process to enter into the Fiber Place. Moving to corrugated business. This business, the main focus and target is very clear, increase profitability and market share into the market. In that sense, we believe we have good opportunities in the salmon business, especially with the mill in the south of Chile, Osorno, which is very close to the farms of salmon. With the new investment, with a high graphic converting line, which is coming next year, we believe that we will be able to enter in a better way to the wine industry. And we still have space in the food sector for keep growing. All this always in a very customer-centric way, working very close with our customers to create good solutions for their needs. In terms of operational excellence, key here is the containerboard mill. We are working and improving our efficiency there and working hard as well to reduce the fiber loss. We are working at the same time with clear challenges and goals and investments to reduce our water consumption and to be more efficient in all the line. In terms of the Molded Pulp Trays, we are renovating obsolete equipment and again working in bigger efficiencies into that business. Something, which I think is very interesting, we are about to use primary slots from Softys and the pulp operations as fibers to produce modling pulp trays and even in the containerboard business, completing in that sense all the way from the fibers -- from the forest until the last use into our own products. In terms of growth, we've been very active as well. In the Til Til converting plant, we already upgraded the machine -- the corrugated machine and added a new converting line, which is already operating in a very good way. In the other converting plant in Santiago in Buin. The corrugating machine is going to be updated -- not updated, it's going to be replaced. And we will add a high graphic converting line during next year. Of course, we keep looking for new opportunities of growing. In that sense, when we talk about innovation, these new converting lines are helping us to get better products. As an example, I mentioned the line in Til Til, which is able to print on the back as well. And with better quality of printing, that is helping our customers to get products with a better unboxing experience. We're working very hard as well to new developments in displays for the supermarkets, for hotels with the clever solutions on that sense, and of course, replacing plastics. In that sense, one thing that we still, as an example, is still developing is -- box that is able to replace other materials for the salmon -- fresh salmon exports. And we believe that corrugated boxes are a good alternative for that. In terms of processes, the same, advanced analytics is starting and very focused on using the data in artificial intelligence to get better production efficiencies. And the same as the other businesses, jumping into Fiber Place as well. This one, which is very important and aligned with our sustainable goals as a company is SOREPA, the largest paper recovery operation in Chile. We recovered about 400,000 tons of wastepaper per year. That means roughly 21 football stadiums full of wastepaper. And this is very important for the circular economy to reuse the box -- corrugated box into paper to be able to produce again corrugated products or even Softys tissues in their business as a raw material. Going back to Edipac, our paper merchant, which is the leader in Chile, of course, in all the merchant business, but I want to focus in the new area, which we added 3 new buying lines. We are able to produce about 80 million bags per year for the retail mainly and to grab a very interesting share into that growing market. And of course, we're still looking for opportunities of growing in this business in Chile or outside of Chile. Summarizing, we have a growing demand for our products. We create natural values with renewable and high-quality products. And we believe that through innovation and efficiency, we will be part of the solution for creating a more environmental world. Thank you very much. And please feel free to ask whatever wasn't clear.

Thank you, Francisco, for your great presentation. We'll now start the Q&A session. I already have one from the audience. So what are the main challenges to substitute plastics currently? What are the things that you have been doing in order to replace some paper or some plastic applications?

Well, it depends on which users you are trying to replace. Some of them are quite easy to replace. I will talk for a second in boxboard -- to replace a tray of tomatoes for -- made of plastics to carton board is quite easy, grease barriers are quite easy. But there are some which are more challenging, especially when you get products with bigger content of moisture or more wet products. So I would say, still, in some areas is moving very fast. Some others needs a lot more research, more trialing on developing the right products.

I have another question from the audience. So what is -- any estimate or a broad number you can give us in terms of the benefits of the cost-saving initiatives you already mentioned? And also what is the estimated investments for Biopackaging in the next few years?

Well, in terms of the cost savings, I will not go deeper on that, of course. But definitely, our target is to be among the most efficient -- cost-efficient factories worldwide in production of paper -- containerboard and carton board. We have the fibers, and we have good chances and equipments for doing it. We believe that we will be able to improve our margins in a good way to efficiency. And in terms of investments, I will not give you the right -- the exact number, but we have in front of us what I have mentioned here, a lot in the environmental area, which we have decent figures there. And we are looking for opportunities. Of course, as soon as we get something interesting, we will let you know.

[Operator Instructions] Okay. So we have one question from the audience. So Sebastián Ramírez, your mic is now open, and you can ask your question.

I got 2 questions. One would be the inorganic part. Can you give us some sense of what are the things that you're looking at if we should think that a movement towards more structural box is something that you're looking at? Or should we think that these small acquisitions in paper sacks and other bolt-on acquisitions, small ones are the ones that are you looking at? Second, in regards to costs, how do you mitigate the impact of the higher freight costs going forward given our location in comparison to your competitors? Is -- with the prices that we're seeing now, it seems to be a big disadvantage.

Well, first, thank you for your question. First, in terms of investments, we are looking for opportunities, organic or inorganic, which fits with our business plans. That's what I can say about it. But let's talk a little bit about logistics, which, of course, especially in boxboard, which, as I said, 90% of our sales are abroad. It's a very interesting topic. So far, we've been quite protected with long-term contracts. We are renovating that. But the good news for us in that is the South to North deliveries. They've been less affected than the East to West. So of course, we have an impact on that. Most of that, we've been able to trust pass to our customers, those extra costs. But in comparison with most of our competitors, which we are exporting, I would say we are not in the worst position. We are more or less in a safe position. And -- well, that encouraged us to be more efficient. We are not planning to change our portfolio or to prevent any area because our long-term commitment is still there. And I would say it has been very tough, but we are crossing in a nice way this period. And probably we are going to be stronger after this crisis than most of our competitors.

I would like to thank Francisco for his great presentation. We will now again watch a short video to prepare for Felipe Alcalde's presentation.[Presentation]

So here with us, Felipe Alcalde. Welcome here to Investor Day. Now you can start with your presentation.

Many thanks, Colomba, and a pleasure to be talking to you all. So today, we'll talk a little bit about innovation and digital transformation at CMPC. And it's good to start a little bit with the basics. What are we focusing on? And it's mainly on core pillars or core avenues of work. So the first one and perhaps the most obvious one is to help our businesses to boost innovation at our core. And here, we have done several things starting from setting very clear goals that we have to comply with up to 2025 that I will deep dive later on during this presentation. Additionally, of course, we're very committed on developing a circular bioeconomy.. This is, what else can we do? How can we take the most value out of the forest that we harness every year? So this is getting into new businesses. This is getting into new opportunities that can also help us tackle larger problems, larger topics that are, of course, beyond different tiers of what we can do alone, but we can certainly assert that we want to be part of such solutions. We see a great opportunity in digital transformation, and we will go through several examples of what we're doing and what we want to do further on top of the progress that we have set so far. Especially we will mention or we will tackle 2 main pillars, which are how are we using data and advanced analytics to become better, to become more efficient and to help our businesses to be in the top quartile of cost performance and productivity. And additionally, we're tackling strongly on how we can help our clients to have the best digital customer experience, how we can be accessible in a frictionless and experience to all of our customers at CMPC. And lastly, what we want to address here is we are very aware that we cannot do this alone. We want to collaborate. We need to collaborate. And we have been structuring our areas and our initiatives in a way that we can build more value but also -- but always with the collaboration on the center of what we're doing. And also remembering what are we trying to achieve. And this is why last year, we set our 2025 innovation goals, which are 3; 30%, 20%, 10%. So quite easy to remember. The first one refers to how we can achieve efficiency, how we can help our current -- our businesses to be more and more efficient. So 30% of our process improvements by 2025 should come from innovation, from digital and from the use of data for decision-making. Additionally, on sustainability, another strong and very important pillar within CMPC. So 20% of our sustainable development goals that we already have in place since 2019 should be achieved through new and innovative technologies. And lastly, but very importantly as well, how we can deliver more value to our clients and to our customers. And this is that by 2025, 10% of our sales should come from new products, from new business or from new business models that we then offered as of January 1, 2020. And let's get a little bit on some of these examples of what we have been doing. So at the beginning, I mentioned about we need to innovate better in our core businesses, and we need to develop deeper our bioeconomy. And we have been taking some very concrete examples towards this. For example, I know that Raimundo briefly mentioned about this, we enter in our JV with new forms, which we aim to disrupt the local market with Mass Timber construction solutions. This is a big change for us. It's getting -- for not only tackling sustainable constructions and new uses of our own wood, but also getting into different business models with fully integrated solutions and not only the providers of the raw material. And the same with our other businesses. For example, our pulp business, it has been working. It has been developing new solutions from the products that we sell currently. For example, new pulps that we are piloting with some certain clients in tissue, new pulps with different [ wideness ] and high-quality applications that we're also piloting with other clients and some new disruptive models -- businesses and business models with our MFC products and services. We already have clients that are very -- they are achieving great results with this, and we are expecting to scale this and also our best investment next year are aiming to scale this sort of solutions. Additionally, we are investigating and always looking for new product lines in non-covered segments. So this is something that has, of course, our attention. We have been in some products like fluff, for example, in the past, and we're always open to look for these opportunities. And we're actively looking for opportunities like this one. In our Biopackaging business, and I don't want to be repetitive. I know Francisco just mentioned some of this, but we are also aiming to be a relevant player in plastic substitution and sustainable packaging overall. And here, perhaps, and again, collaboration is a key word. We are working with clients and customers throughout the world in order to deliver and to jointly design with them better solutions that can help to subsidize plastic and provide better packaging. For example, our zero waste sack. This is Sack Kraft sack that fully dissolves in the mixture. So you have zero residues from this product. Everything that we are doing in barriers and food containers and food delivery industry, everything that we have developed last year and we were selling through Edipac and other businesses and channels in new paper birth solutions for e-commerce and delivery, hugely relevant in the times that we are leaving. And finally, several solutions here is one example like the pet food or flour and fish flour solutions or the boxes for fresh salmon and different sort of fish that Francisco mentioned early. Moving to the digitalization topic, digital transformation. I think that here we are betting strongly, and we're betting on efficiency and customer centricity. And also, we are exploring on new digital business models that we may achieve. Here, I'm bringing to you 3 examples -- not 3 examples, but 3 main initiatives. One, as I mentioned earlier, it's our industrial advanced analytics program at CMPC that we call Best 4.0. Here, it encompasses everything that we are doing in the use of data and advanced use of data in our mills. Second is we are aiming to be a world-class digital customer experience company. We are delivering Fiber Place, and I will explain a little bit deeper in the next pages what this means. I know also that Francisco mentioned this to you. I will elaborate further. And finally, we are incubating new digital business models. There are a lot to be learning here. At CMPC, we want to understand this is better, and what better way to understand it is that to get involved and to start building this business, start to collaborating in this type of businesses. So to get a little bit more of context what we have been doing in Best 4.0, and I think that we can tackle this from different angles. We have been investing importantly in our factories, in our mills in order to have top-of-the-line technology there. For example, the Valdivia mill this year opened its first 5.0 room. As you can see there, where we have an end-to-end view for our processes and what we can integrate whatever we were doing, everything that we were doing beforehand and everything -- all the new things that we are delivering with Best 4.0. So this is a collaboration between technology providers, between our current vendors and between -- of course, and also incorporating the analytics capability that we have been building throughout the last couple years at CMPC. I'm going to add more into the Best 4.0 initiative. Best 4.0 is already delivering relevant value to 5 of our plants in our Pulp business and in our Biopackaging business in boxboard. And this is quite relevant because while delivering this very important value that I will explain in just a few seconds, we're also strengthening our internal teams. We are incorporating new roles, new profiles, new sort of talent that is highly valuable and critical to be successful in 21st century. But we are also working very closely with our frontline employees, with our mill managers, enhancing our processes and strengthening our technical expertise. We have been working in this program perhaps with 3 main pillars. So its impact as a key driver. This year, we expect to have roughly half of that impact by the end of the year in run rate. And next year, we're aiming to have $30 million to $35 million in efficiencies achieved through the use of data and advanced analytics in our different mills. We have been delivering a new digital analytics capability, and we have been building this internally. This does not mean that we will not collaborate with our vendors with existing solutions. But we are very aware that there's a huge amount of value there but also that we need to foster this internally. We need to train our people in these topics, and we need to be able to build this capability as a core capability for the future. And also we are scaling this. We are building a solid technology infrastructure and architecture, working with big companies. And in this case, we are working with Google Cloud as our cloud provider. How we're doing this? That sounds a little bit ideal. It's -- the impact of analytics is captured basically by tackling all of our main processes, so all of our main cost drivers, for example, in a mill, in a pulp mill, as I'm showing here. So it's good. For example, in case 1, by the use of data, we have been able to impact by 1% to 2% our production increase by improving the yield of the wood. So wood consumption improvement, right? And then if you go through the line, then you can see several cases. So speed optimization, paper mills, chemical consumptions, fuel consumptions, smell reduction, which has a huge impact of -- for our communities, so on and so forth. So basically, we're tackling our mills end to end, one by one. And here, we are -- we have been already able to deliver substantial impact, but also, as I mentioned before, building these capabilities. Several of these -- 3 are actually out of the 6 cases that we have here are already in place and other 1 -- -the other 3 are being delivered and soonly to be put into production. So this is a reality for now as of today. It's not only a theoretical exercise. And moving toward digital customer experience. So this year, we launched Fiber Place on our boxboard business. It has been the pilot business for a couple of months. And we will have -- we have had a great reception from our customer agents. And basically, what we want to achieve here is that we want to become industry benchmark in digital customer experience by covering all of our businesses by 2023. So it started in boxboard, but we are already working to expand these to different businesses and also to expand this to different functionalities. What do we want from Fiber Place? So basically is to provide a simple, a fast and an easy solution to all of our customers and clients. We also here want to move to a world of self-service. We want to have this one-stop shop, digital one-stop shop, where you will be able to do everything or basically all of the transactions that you need with us, from sales, order tracking, customer service, credit status, inventory control, everything related to certificates and paper work, and then move to more sophisticated functionalities, like product recommendation and analytics. This is already a reality for Boxboard. We are piloting this in Lat Am, but we have a very ambitious road map up to 2023, where the company will invest importantly in order to be able to cover worldwide and to cover all the functionalities. And to put this into a little bit more concrete, this is just an example, but the left side of the page is how the process used to look, and this is very manual, very -- and much more difficult. And we're moving to something like what you look in the right side of the page, which is a frictionless digital journey, with self-service at the core of it. Moving to our last pillar, which is about collaboration. So many of these developments have been built in close partnerships with some of the leading local universities in our analytics program. We work extensively with this institution. And this is the way to go forward. We are fully convinced that boosting the science-based innovation seen in the region is part of what we need to do. And to do that, we have to collaborate. And we have to collaborate with all this great talent, whether it's in Chile, in Brazil or elsewhere. This is something that we need to do, and we will keep doing going forward. We cannot mention -- we cannot stop to mention about another big source of innovation, another big source of talent that we have been working very closely in the last 2 years, which are start-ups. We have engaged throughout the last 2 years extensively with them, and it has been a great ride. I think that we have learned massively. We have worked with over 45 start-ups from these 10 different countries. And basically, we have built, I think, strong relationships throughout the entire value chain. They are working on our main issues, on our main topics. And this is something that we value tremendously. We are being able to deliver value for CMPC and all its stakeholders. But also, we have helped a wider ecosystem of innovation to flourish around us in the degree that the -- in a small degree, but it's something that we want to improve. Here, we can see some examples of the start-ups that we have worked with and has been quite successful, for example, like Timbeter, an Estonian company, where we have reached ROI of these investments of 11x, and Timbeter has grown extensively with the help of us; or Smart Truck and Logistics with this spinoff from an academic research in Chile. And today, it's being piloted in -- with our transport providers with very, very good results. We have saved up to 25% of empty kilometers and avoided an important amount of CO2 equivalent emissions, which is also something that add innovation, we have to be very mindful in tackling; or Monitor, for example, which have actually this start-up came up from our inventing the future CMPC innovation challenge. And in the first pilot, in one of our Sack Kraft mills, it allow us to enable up to 4 points of OEE improvement and now it's being rolled out to all the different locations. So very inspiring success stories and very concrete examples of how this ecosystem has helped us to be better by collaborating. And again, in the start-up world, we understand that we need to collaborate even further. We need to collaborate more, and we need to collaborate more structurally to innovate better. And this is why, at the end of next year, early this year, we found that CMPC Ventures. This is our corporate venture capital arm. It has been running throughout this entire year. It has been an amazing journey, let me tell you that. You can visit us and get more information on cmpcventures.com. I think that here, it's quite important to tell you what are we focusing through CMPC Ventures. So we are looking into 5 verticals with high potential impact for the future. This is pulp-based textile fibers, new uses for wood, sustainable packaging and plastic substitution, new materials, specifically focusing on lignin and nanocellulose, and digital and disruptive business models. This is, I think, quite important to mention that this is not only us that we are seeing this opportunity. I think that there are several companies and institutions, from NGOs to private companies and corporations, to large corporations to start-ups, that are looking at these opportunities and are seeing that these are avenues of progress for everybody. And here are some examples of quotes that we have seen in the same spaces that are CMPC Ventures, we are looking at what others think. With CMPC Ventures, what we aim to have is global reach. This is not a vehicle to invest locally or in Lat Am. We want to be global. We want to invest everywhere, where we find a good idea with a good team or a good technology behind it. We want to be in conversations with you. So we are very, very happy. Throughout this year, we have been building a footprint of partnerships that enable us and will allow us to have access to very good deals in the future, that's what we hope. CMPC Ventures is a vehicle that is a stand-alone vehicle with its own governance, that is led by our CEO and which I am very humble to be part of such committee. And it's -- and we invest direct from our balance sheet. We do not have a fund for this. Nevertheless, we do have, of course, in our budgeting process some figures around what we expect to invest in the coming years. And nevertheless, we have been active for such a little period of time. We have been already investing in our first 2 ventures. One is Strong By Form, which was named the best start-up of the year on 2020 in Chile. This is additive manufacturing technology that allows the production of biocomposites using wood and other materials, which it's basically a technology platform for many applications, from construction, electromobility and on. This company is operating in Chile and Germany, and we are very happy with this collaboration and with great interest on what will come from the future. And also, a couple of weeks ago, we launched Boxia. Boxia is a marketplace for sustainable packaging products. We are running a pilot just recently, a couple of weeks ago, in Monterrey, Mexico. This was an in-house development and a spin-off from CMPC Ventures. You can also visit us from www.boxia.com.mx. But this is also, I think, very consistent, both with the strategy of Ventures and with the strategy of CMPC overall of exploring these new digital businesses and how this may impact on how we can benefit from this in our industry. And lastly, we have -- we will not stop collaborating widely. We want to keep reaching out to the best teams in the world, to the best solutions, to the best technologies. So this year, we launched SAVIA. SAVIA is our open innovation initiative for biopackaging. We're just -- we're in the middle of the process. We're finishing. We just selected our 6 finalists, which are setting up the pilots within CMPC, but also very happy to see how this type of initiatives can penetrate worldwide. We have companies from more than 20 countries, and we have finalists from also from 4 different countries. So this is something very, very inspiring and to see all the great things that are doing emerging innovation and sustainability going forward. This is a little bit what we have been doing in a nutshell and very happy to answer your questions now.

Thank you, Felipe, for your great presentation and for showing us all the great things you're doing in the innovation landscape. If you have some questions from the audience -- but if you have -- if the audience have any further questions, please remember to raise your hand or type it in on the chat box. So here, I have on Fiber Place and also on Best 4.0. Any estimate on the investment you need to expand the platform to all CMPC operations? What's the timing of it? Are you planning to take some time? What's the implementation time?

Yes. On Fiber Place, we have a road map densifying out to 2023 and the investment that we estimate, as of today, it's in the neighborhood of $10 million. And on Best 4.0, I think it's -- we have a road map again that it's going to be fully finished by 2023. But with huge chunk of the impact coming, I think, next year in the neighborhood of the 30 million, 35 million in run rate. So that then if you analyze -- if you're moving that on to 2023, we expect to actually be doubling that. And the investment for that initiative, actually, it's -- as of today, it's in the neighborhood of the $7 million to $10 million a year. So that's rough numbers that I can give you now.

Okay. I have one more question. On CMPC Ventures, is the company looking into converting the pulp mill into dissolving pulp in the near future? Or that's something that's not being analyzed right now?

We have been looking for all the different alternatives regarding how -- regarding the opportunities of the textile fiber. What we are mainly focusing on, it's on novel technologies that we are seeing emerging throughout the world. So we have looked into dissolving pulp, but this is not in the near future plans.

Another question from the audience. What is the improvement in EBITDA that you're targeting with all the initiatives you just mentioned? And what is the total investment in CapEx? And if you can tell the real figures or the exact figures, any broad number or direction do help?

That's perfect. So in -- okay, in EBITDA, I think that the total number in product innovation, it will be in the neighborhood of $40 million to $50 million. And in efficiency, this is something that we are -- we do not have the full number now, but I think it should be around double that number.

Perfect. We'll now take the last question and then we'll go with Francisco's presentation. So what -- where do you picture and how do you picture CMPC in the next 10 years? What's your view of what CMPC should look at that point from your -- from the innovation point of view?

I think that we are at an amazing position, and we have great opportunities going forward. And I see a company that it's fully inserted in the full ecosystem, and this is in the wide range of opportunities. I think I see a company that it's benchmarking efficiency, that it's using and harnessing the power of data and digitization to be very efficient. And by this efficient, I mean, with [ analytic ] approach, not only in cost effectiveness, but also in being much -- in reducing as much as possible our impacts in the world. We see a company that has embraced extensively digitization and novel ways of communicating to our customers, to our current customers and to potential future customers, including end customers. And I also see a company that is -- that keeps doing the great things that it's doing today, but has been able to scale it. So this is a little bit of my dream, and I think that we're on the right track to capture such a dream, with the initiatives that we have in place and with the great team that we have at CMPC.

Thank you, Felipe, for your great presentation and your great responses. We'll now watch a short video and then go with Francisco Ruiz-Tagle's presentation. [Presentation].

[Technical Difficulty] you have had the possibility for -- to go over the different presentation of the company, different businesses, different initiatives that we have. My idea now is to try to close this session with some remarks about the company. Probably some of my comments, you already went into more detail this morning. First, I'm trying to transmit you that some of our main objects, main goals in the company. We are very much focused on commercial and commercial excellence as you have had the possibility to see during this morning. And again, as the other years, I want to reinforce our effort in being operationally excellent. And of course, working very hard in procurement in the different division of the company. The growth of the company also being really focused for us, organic or inorganic. And -- but the most important thing that is to go very efficiently in this way. And the people, as a center of our development, innovation and data and sustainability, very -- we have a lot of different programs in these areas to make this company more prepared for the future basically. Sorry. I'm sorry, I'm trying to -- having some problems. Okay. Going more deeply in commercial excellence. As I said, this is absolutely a priority for us. In pulp, I want to remark the idea of being broadened in our fiber basket, basically developing some special product like ecobright and microfibers, and always starting different opportunities for our customers. And the other thing that we have considered very important is the local presence, not only for the pandemic, but also for being more closer in terms of our commercial development in the world. Customer service has been really a focus for us. The mix definition very much based on what is the market looking for and customer trends. We have also developed a segmentation model, internationalization, also very much important for us. We have a local presence in Europe. We acquired an office in Germany. We also have our own office in China and the United States. Capillarity is also part of our plan being closer to the final consumer as much as we can. In terms of wood products, also working very hard in value-added products, such as fire retardant, water-resistant plywood, for instance. And we are very convinced that the wood in construction is the future. We have an important opportunity in this aspect for our business, construction based on natural fibers, basically. That's why we have been working in being more involved and increase our participation into the construction segment. In that aspect, we have advanced in structural wood, in our sawmills. Also, we have incorporated CLT and Glulam, acquired a small operation, and we will be growing this business in the future. And some added value products also, we have improved our experience with our client and digitalization is important in this business to be closer to with our clients also. In general terms, I would say that we have been developing this business with a lot of focus in construction, in general. And looking at the other business we have, box, for instance, in general, the biopackaging business of CMPC, we see a lot of growth opportunities and room to improve our business here, particularly Boxboard, which is an important business for CMPC. We see a relevant market in front of us with great growth opportunities. We have the possibility to grow in this business, probably not only in Chile, but also in Brazil, we see opportunities. In this business, we have digitalized the experience with the customers. We are now -- we created a Fiber Place, which is an opportunity for being closer. Growth in high-end margin markets, consolidate positions that we have today, very strong positions in Europe, the United States and Latin America. Develop also new market is a goal for us in Asia and Oceania. And innovation is very important here. Innovation, we see very different -- a lot of different opportunities for innovate for creating new products. In corrugated boxes and molded products, again, we see opportunities because of the e-commerce developed -- we have developed some new products as ecobox, papers, construction -- for construction materials. So again, in industrial, fruit, vegetable and salmon segment, we see very good opportunities for our packaging, basically replacing plastic. And in the case of Sack Kraft, in some of the same areas, replacement of plastic is very crucial here. Innovation, we have innovated new products now for pet food, dissolvable cement sacks, and we see, again, opportunities in different kind of packaging and also for e-commerce here. In terms of operational excellence, again, reinforce the idea that we have been working really for several years in an important program that we have called Best. And this is why -- because we want to be the best. We want -- we are looking for global benchmarks here. And there is -- you see there that we're starting very focused on being the best in our mills from 2016 till 2021, we see improvements in OEE and the different businesses, in part a very important improvement. We are now producing more tonnes compared with 3, 4 years ago. Biopackaging, again, both for corrugated paper and Sack Kraft with better productivity. And when we talk about the forest, again, continue working and improving our productivity that we measure in cubic meters that growth and hectare per year. And also in that aspect also working very hard. And it is translated in that we have a very good position in short fiber and long fiber when you see the supply offer and seeing the -- some of the main producers in the world in long fiber, pine, softwood, we have a very respected position. Chile producing with very good cost. And in the case of hardwood, we are -- as you know, we are in Chile and Brazil with the best cost in the world. In the case of Softys, some commercial and operational comments about Softys brand and consumers. It is a goal for us to strengthen our brand portfolio, again, increase the share of the digital channels. E-commerce has been a very concrete initiative that we have been growing during this year and implementing e-commerce in the different countries that we are participating throughout Latin America. Capillarity, of course, as a fundamental goal for broader our customer base, data analytics has been incorporated and included to optimize our commercial channels, customized software design for channel focus on customers and revenue management, of course, as a central goal for the business. And in operations. As I said before, for biopackaging and pulp and our wood plants, operations, again, increased OEE very much focused in having a very efficient way of producing papers, cost transformation, digitalization take the best practices that we have within our Tissue business and explore these best practices to all of the countries, for instance, APAC and Brazil, it's a very good experience for us and where it is to transmit these good experiences to the different countries in Softys. The development of new products reinforce the supply chain and optimize the number of SKUs as part of our main goals in this business. Grow in pulp. What does that mean? Well, in forestry, as you know, we have been growing for preparing the forest base for our BioCMPC project that we already approved in Brazil, increasing our capacity in 350,000 tonnes per year in Guaíba. And we also are preparing our forest base for future expansion. During the last years, we have planted 85,000 hectares preparing this future growth. Still, we have room for growing some more hectares there. Some debottlenecking. And as I mentioned, in the case of our BioCMPC project, that is very important for us in this moment because we are reducing the CO2 in that mill, an important way. We have a goal, at CMPC, of reduction of 50% of our emissions of CO2 by the year 2030, and this is a big contribution for that goal. We are also minimizing the use of water in that mill with the project. We are reducing noises. So it is an important -- also -- it is important also considering this impact on the community. Also, we are taking a look of some wind energy projects of -- in Chile and Brazil, there is opportunities for growing and incorporating some natural way of producing energy. And in the wood product segment, as I mentioned before, including in our mills in Chile, value-added products, efficiency, even we are including more engineered in the wood products, like CLT, as I said before, through a new form, which is a new company that we created for producing these construction products for -- construction wood in products. In the case of packaging, Boxboard, organic and inorganic growth, it is an opportunity. We are studying possible locations, as I said before, and working hard in increasing our margin and selecting the best market for CMPC in Boxboard, which is also a product that we produce with one of the best costs in the world. Paper sacks, again, we acquired an operation in Mexico last year that had been producing very well today, so we are increasing our participation in Mexico. We installed 3 modern lines in Mexico, Argentina and Peru last year, which is helping us in responding to the market today that is very much not concentrated in e-commerce and different way of packaging. And when looking for growth opportunities, could be inorganic Mexico and some other countries in the rest of the Latin America. But replacing plastic is crucial in this business. And in corrugated, we have been modernizing our mills. We've done debottlenecking projects in the different plants that we have. We -- it means that we have today more capacity, again, for reaching the market, the more demanding markets of the -- our Biopackaging business. In Softys, as you know, we are in the process of acquiring Carta Fabril, which is new company in Brazil for us. So helping us in having a more robust position in the Brazilian market, working and integrating this business to our operations. Expanding our personal care business, also a very important goal for this business. And Mexico, of course, as a target of continuing our participation -- growing our participation in that market during the year. In terms of financial management, just to transmit you that we have been following very closely always our behavior. And in that sense, we have a concrete goals in terms of our net EBITDA ratio and the interest coverage ratio, financial debt ratio and cash. Just to remind that we are ending the year with a number close to 2.1 in terms of net EBITDA ratio, which is basically -- which prepare in a good manner to CMPC for the future. We see with opportunities for financing growth in a way that we find opportunities for supporting the business, our core businesses. We -- in terms of people, the people, we -- also we have been working with very concrete goals here, working on the culture of the company. We have quarterly culture service that we applied for most of the employees of CMPC. We have concentrated also development programs for lean management principles that we have been working in the different business. We also enrolled some ambassadors in our [ Beyond ] program, which is a program that is looking to the future of the company, and we have been preparing people for accelerating the path for the future of CMPC. In terms of technology, in the employee area and the people area, we have incorporated a new HR management system for over 19,000 people. We have incorporated more than 15 e-learning courses for our associates, which is a very fantastic tool for really quickly preparing people in many different aspects. In terms of training and learning, I can inform you that we have had -- we have been with now around 300 -- 3,000 to 4,000 people working in a hybrid model. More than 6,000 people were trained during the year in operational excellence and continuous improvement. And we also have -- started with a very interesting strategic alliances in terms of education with the best educational institute that we have in Chile, in particular, with Duoc in Nascimento. We put the first stone this week for building a new center for education in Nascimento for many people there, which allows a development for this particular region. And also it is a great opportunity for practicing the dual system education in this region. And so we are very happy with that. Duoc is part of the Universidad Católica de Chile. And I'm very proud about that, so we feel very well. And diversity and inclusion is also a complete target that we have today, including we have a very concrete program for improving and incorporating these aspects in the company. Talent management also has been a focus, and we have different systems for managing the people and giving everybody the opportunity for growing in the company for developing. It's a characteristic and professionalism in the company. Innovation and digitalization. You were talking before me with Felipe. I guess you are really well informed about that. But we said for 2025 innovation goals for each business unit, we launched Beyond, and we are very happy with that because it's a way of respond to the consumer of the year 2050. This is a definition that we decided for this program Beyond is a way to see the future in CMPC. We have ambassadors, as I said before. And we are really focused in orienting the people to the future. We are oriented to the future, and this is the idea and the company. Circular economy. Again, say, a must for us. This is why we have been involved in the construction and the wood in construction, structural construction in wood, creating some specialty in cellulose, plastic substitution in our -- in Biopackaging businesses. Transformation to biorefinery is also we are developing -- some development in lignin nanocellulose, tall oil, so different initiatives in course. Accelerate digital transformation is also part of our goals. So we have advanced in analytics, in machine learning in 5 different plants. We have created an academy for digital skill for developing digital skills and for creating new solutions for customer management also. Well, alliances, as I said before, Universidad de Concepción, a different initiative Universidad de Concepción, the creation of CMPC Ventures that already Felipe explained to you, so I will not go into detail on that. Electromobility is also part of our goals in CMPC. Well, we define -- our purpose of the 3 Cs, which means conserve, coexist and create. For each of these Cs, we created concrete goal. Concert, we have goals in emissions, the reduction by 50% by the year 2030; water, 25% reduction by 2025; waste -- zero waste by 2025; conservation, 100,000 more hectares of conservation by 2030 and advancing very well in each of this. In coexist, diversity. Diversity means that we are -- we have concrete target about increasing 50% the number of woman -- of women that work for CMPC by the year 2025. Women in management position by 50% by 2025, inclusion 2.5% of the workforce with people with disabilities by 2025. And create very much connected with innovation, 30% of processes of improvements that we have in the company had to come from innovation and the use of data. 20% of the specific sustainable goals has to come from innovation and 10% of sales of the company by the year 2025 has to come from new -- from innovation and new products. In terms of sustainability, I want to transmit you, tell you that we have been -- we are incorporating the company in different initiatives. We are part now of Business Ambition for 1.5 Celsius degrees, based on science targets, United Nations. And so the company is working behind this goal. And again, Race to Zero is also part of our goal. We are part of these groups and working hard in different operations and being part of the solution of the climate change with a total definition. Long-term partnership is essential, as I said before. World Business Council for Sustainable Development, working hard with them. And particularly in the Forest Solutions Group, we are part of the greenhouse protocol, again, which is very important for managing our emissions. And so just to transmit you that we are -- we are very international in general terms about our goals, about our benchmarks. A good news for us during the last days is that we received the Dow Jones Sustainability Index recognition. CMPC was recognized as the second most sustainable company in the forest and paper industry globally. So we feel very much comfortable with this. We have been working since 2015 in improving our -- in managing all different aspects that are measured for this index. And what you see in the bars that we have been growing year by year, and we are very proud about being, today, one of the most sustainable companies in this industry in the world. And finally, just to mention to you that we are looking to the future. This is our effort today. Looking with the total decision, the future. In terms of our strategy, in terms of our future investments. And when you see our program called Beyond, which is our definition is what we have for building the future, there are some aspects that I'd like to remark here. For instance, we are now working in the future management of forest assets. What is the future of the plantation? The way we plant sustainable smart packaging, the water, water is an essential, of course, element. And working day by day with project improvement, the use of water of the company being -- trying to decrease as much as we can, the use of water in the company. Sustainability. CMPC's client-centric, different initiatives and point for that data. Again, working hard on data and agile ways of working. And through CMPC Ventures, as Felipe said, we are looking for some concrete goals as, for instance, the good textile fibers, new uses of wood, sustainable packaging, biomaterials, disruptive and digital business models. And so this is what I wanted to transmit you. And basically, our company now, I would say is a company very much oriented to the future in terms of our growth, in terms of the society, the communities, the customers, the shareholders. So this is what I wanted to transmit you today. I'm open for receiving questions. Thank you very much.

Thank you, Francisco, for your great presentation and for being with us today. I do have some questions from the audience. So I'll start with, do you see room for CMPC outside of Latin America? Any other regions around the world?

I would say, yes. There is room for CMPC outside Latin America. And well, the company started its internationalization throughout Latin America. But we are a global company, with sales in 45 different countries. And I would say the company, looking to the future, has opportunities in the United States. Has -- the company has opportunities probably in some other countries and in the rest of the world in our developing process. So there is room, I would say.

Another question from the audience. What is your CapEx guidance for 2022? What do you expect or what's your focus for 2022 as well? Both connected.

Well, the CapEx guidance for the 2022 would be in the range of 550 million and 600 million, could be some more because of our BioCMPC project. But -- and that range, I -- my focus regarding the focus that we have, well, continuing with our strategy, very much focus in looking for opportunities in the business that we are participating today, open to that, of course. And being -- and very much focused in managing some pressures of cost that we are having probably during the next year because of the increase in prices of commodities. I would say that this is something that we have to be able to control. So in general terms, our operational goals includes the management of cost and expenses during the next year. And I would say this is an important goal. Continued expansion of our customer base in different products, continue our initiatives of innovation in new -- and in particular, the creation of new products, it's an important goal for CMPC.

We have one question from the audience. George Staphos, your mic is open.

Thanks Colomba. Francisco, thank you, and I thank your entire team again for a very good, a very thorough presentation. I had 2 questions for you longer term. First, after Guaíba, on this expansion, do you think it would be possible that CMPC sees another pulp expansion, capacity increase in pulp before 2030? Second question, much of the growth of the fiber-based industry, both in pulp and in paper-based packaging, seems to rely on replacing plastic, which is an obvious and certainly a big opportunity. What threat do you see from the work that is being done now by the plastics industry. There's a lot of activity occurring in both advanced or chemical recycling and mechanical recycling to make plastics a greener material and to combat what paper and fiber are doing.

Well, thank you very much for your questions. Let me start with the first question. As I said during my presentation, we have been incorporating new hectares of forest. During the last 3 years, we have added around 85,000 hectares and we are -- we always continue expanding our forest base in Brazil. We haven't defined a concrete new project till now, new expansion. But we will continue in preparing potential expansion and probably we could have some before 2030, which is your question. So basically now very much concentrated in our project -- in our debottleneck employee that we have now, which is BioCMPC, very much concentrated in being excellent in all this process of construction, of -- and then in the operation of that project, and continue working in growing the forest base, preparing the company for future expansion. And regarding your second question. Your second question, well, you are right. And it is totally true that the plastic industry is working and being -- and been more sustainable, recycling chemicals and et cetera. I would say that they're working hard on that. There is a threat in that, but I would say that our industry has a very strong position, even considering that because it's based on natural fibers and we are a company that is a renewable company. We -- the plantations are renewable. So although there is a threat, I would say there is a very important window for growing in the world, the paper packaging. And especially for countries that have very good conditions in terms of the cost of fibers, like countries where we are operating now. And it will be always a matter of concern for us to be very on line with what is happening in the industry of the plastic and -- or other alternatives to compete in a good manner for that. That's the reason why we are very much -- we are very hard working in reducing cost and being very efficient in case we have to compete with some other alternatives.

We have one more question from the audience. So regarding dividends, do you expect to maintain the higher level of dividends we saw during 2021? What are you expecting for 2022 and 2023 in this regard?

Results, you mean?

Regarding dividends. Dividend payout ratio. Our dividend policy.

Yes. Regarding that question, no, the decision of the company was to go to this year, the definition was because of our results. The decision was to go to the shareholders with a good compensation because of the results and the good operation of the company this year. But we have to see this decision as a onetime decision, and we should be returning to the dividend policy that we had before the year 2021, okay?

Perfect. Thanks for the answer. Another question from the audience. So what is your ambition for the wood construction division for the next 5, 10 years? You talked a lot during the presentation -- your presentation, but also on the Pulp business presentation about this wood construction segment. Are you expecting for it to gain more exposure in terms of EBITDA in the next few years?

Yes, my expectation that we should be growing in this business for the next year. We define the -- our Wood business, Wood Product business as a core business for CMPC. So my impression is that I -- we will be growing that. And this business, this part of our business will be growing as a percentage of our EBITDA, looking to the future, will be more important.

Perfect. And so thank you, Francisco, for your great presentation. I would like to first thank you all for being with us today. It was a great pleasure to be with you, even if it was in a virtual format and to be able to show you all the great things that we're doing on CMPC. We hope that we can meet again throughout the year. And if not, hopefully, we can see each other again in the next Investor Day. So thank you all for your presence, and please contact the Investor Relations department if you need any further information or need any help. Thank you all, and have a great day.