Empresas CMPC S.A. First Quarter 2010 Results th May 7 , 2010
“CMPC is recovering satisfactorily from the earthquake and tsunami that hit Chile two months ago. Presently, all the Forestry, Paper, Tissue and Paper Products facilities have restarted operations and are running normally. Regarding Pulp mills, 92% of its production capacity is operative. Recovery after the earthquake has been a huge challenge. Although much of CMPC’s facilities are located close to the most affected area, the commitment shown by all employees has allowed the Company to resume operations quickly. This spirit of cooperation and effort is part of CMPC’s values, which have transcended over its 90 years of history.”
1Q10 in Brief
2
Income Statement Analysis
3
Balance Sheet Analysis
7
Relevant Events
8
Balance Sheet
9
Income Statement
10
Cash Flow Statement
11
Sale Volumes
12
Conference Call th Date: May 14 12:00 PM Eastern Time US Toll Free: (+1 888) 481 7939 International Dial: (+1 617) 847 8707 Password: 97034258
1Q10
1Q10
1Q10 in Brief
The earthquake that hit Chile on February did not impede the Company to increase its total sales and EBITDA, when compared to those of the previous quarter. This was mainly explained by the positive impact generated by the incorporation of Celulose Riograndense in Brazil, as well as the favorable scenario for pulp prices, which registered an 8% and 14% increase in softwood and hardwood respectively. On the other hand, there was a preliminary charge of US$50 million in the "Other Gains (Losses)" account, because of the estimated damages to fixed assets and inventories caused by the earthquake, after deducting an estimated compensation to be received by insurance companies.
•
CMPC’s consolidated sales for 1Q10 reached US$938 million, registering a 2% increase when compared to those of 4Q09. During the quarter, there were higher sale prices in the Pulp and Tissue divisions. On the other hand, sale volumes increased in the Pulp and Paper Product businesses, as a consequence of the seasonality of the fruit export business in Chile.
•
Consolidated EBITDA reached US$233 million during 1Q10, showing an 11% increase when compared to that of 4Q09. This higher EBITDA is mainly explained by the raise in CMPC's consolidated sales, especially those of the Pulp division. The EBITDA margin reached 25%, two points higher than that of the previous quarter.
•
CMPC registered a Net Income of US$80 million during 1Q10; showing a 35% decrease when compared to that of 4Q09. This was mainly explained by a preliminary charge of US$50 million in the Non operational Items, in response to the estimated damages to fixed assets and inventories caused by the earthquake, after deducting an estimated compensation to be received by insurance companies.
•
CMPC’s net debt as of the end of 1Q10 stood at US$2,200 million, presenting a US$80 million raise when compared to that as of December 31st, 2009. This was mainly explained by a reduction in CMPC's cash level, as a consequence of a US$78 million payment to Fibria regarding the acquisition of the Riograndense unit. Nevertheless, it is important to highlight that CMPC closed the quarter with US$662 million of cash.
•
In the dawn of February 27th, a violent earthquake with an intensity of 8.8 on the Richter scale struck the area between the regions of Valparaiso and the Araucanía in the central part of Chile. Following the quake, all CMPC’s Chilean facilities halted their operations, activating their contingency plans. Fortunately, there were not employee misfortunes or severe structural damages to buildings or the equipments of the Plants and mills that CMPC has in the Metropolitana, Maule, Bio Bio and Araucanía regions. At the time of writing this report, all CMPC’s mills are operating normally. The only exceptions are Santa Fe line I mill which is operating at 50% of its capacity, as well as the Paper machines of the Laja Pulp mill. Nevertheless, both units should recover operational contidions between May and June.
Key Figures US$ Million
1Q09
4Q09
1Q10
∆%Q/Q
∆%Y/Y
FY 2009
FY 2010
∆%Y/Y
Sales EBITDA EBITDA Margin Net Income
698 139 20% 53
915 210 23% 123
938 233 25% 80
2% 11% 2% -35%
34% 67% 5% 50%
698 139 20% 53
938 233 25% 80
34% 67% 5% 50%
57
1,357
166
-88%
189%
57
166
189%
Total Assets Net Debt Market Capitalization
10,044 1,357 4,149
12,296 2,120 8,749
12,207 2,200 9,283
-1% 4% 6%
22% 62% 124%
10,044 1,357 4,149
12,207 2,200 9,283
22% 62% 124%
Closing Exchange Rate Average Exchange Rate
583.26 599.80
507.10 525.67
524.46 525.13
3% 0%
-10% -12%
583.26 599.80
524.46 525.13
-10% -12%
CAPEX
2
Forestry
Pulp
Papers
Tissue
Paper Products
1Q10
Income Statement Analysis
Total revenues reached US$938 million during the quarter, a 2% higher when compared to those of 4Q09. During the quarter, there were higher Tissue and Pulp prices. The latter was mainly explained by a decrease in the level of inventories abroad. On the other hand, the incorporation of the Celulose Riograndense unit in Brazil offset the lower pulp production volumes registered in Chile. Moreover, the Paper Products division also showed a better performance when compared with the previous quarter. This was mainly explained by the seasonality of the fruit export business in Chile. Finally, it is important to highlight the negative consequences of the earthquake in terms of production and sale volumes. Fortunately, this was partially offset by the sale of inventories as well as the foreign subsidiaries sales, especially those of Tissue and Pulp businesses.
Sales Breakdown Analysis to Third Parties
Total Revenues Evolution 915
938
= ? Volumes
= ? Prices
+ 13
+19
+44 -6
698
+5 -0
-20
-7
-6 -19
938 915
1Q09
4Q09
Sales Ventas 4T09 forestal Forestry 4Q09 -25
1Q10
Pulp celulosa +57
Papers papeles -26
Tissue tissue +4
Sales Paper Ventas P. Papel 1T10 Products 1Q10 +12
CMPC’s consolidated EBITDA reached US$233 million, 11% above than 4Q09’s EBITDA. This growth is mainly explained by the higher EBITDA of the Pulp and Paper Products divisions. Nevertheless, this was partly offset by a decrease in the EBITDA of the Forestry, Papers and Tissue divisions.
EBITDA Variation by Business
EBITDA Evolution 233 210
+40 -6
210
139
+4
233
Paper Products
EBITDA 1Q10
-4
-11
1Q09
4Q09
EBITDA 4Q09
1Q10
Forestry
Pulp
Papers
Tissue
Net Income during the quarter reached US$80 million, 35% less than that of 4Q09. This decrease is mainly explained by a preliminary charge of US$50 million in the Non operational Items, in response to the estimated damages to fixed assets and inventories caused by the earthquake, after deducting an estimated compensation to be received by insurance companies. The above could not be offset by the higher level of EBITDA, as well as the superior Net biological income and lower Price level restatement adjustments.
Net Income Evolution
Net Income Analysis +23
+3
123
-0
-5
80 +2
53
-66
123
80
1Q09
Forestry
4Q09
Pulp
1Q10
Net Income 4Q09
Papers
EBITDA
Depreciation & Stumpage
Tissue
Net Biol. Income
Net Fin. Costs
Other Non Price Level Net Income Oper. Restatement 1Q10
Paper Products
3 3
1Q10
Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL
A breakdown of CMPC’s sales to third parties by destination during 1Q10 shows that 46% of the sales corresponded to exports, 26% to the domestic market in Chile and 27% to domestic markets of foreign subsidiaries. During 1Q10, export sales decreased their contribution to CMPC’s consolidated sales, when compared with that of 4Q09. This was mainly explained by the earthquake that affected Chile on February, which reduced pulp production and sale volumes, among other export products.
CMPC’s sales breakdown to third parties by business for 1Q10 shows that the Tissue and Pulp businesses contributed both with 33% of total revenues, followed by Paper contributing with 16% of total sales. Finally, the Paper Products and Forestry divisions represented 10% and 9% of total revenues respectively. CMPC’s EBITDA breakdown by business for 1Q10 shows that the Pulp division experienced a sharp increase in its contribution to consolidated EBITDA, as a consequence of the 8% and 14% increase in softwood and hardwood prices during the quarter, when compared to those of 4Q09. On the other hand, the Forestry EBITDA diminished strongly during the quarter because of the higher harvest and freight costs registered during the quarter. Moreover, Tissue’s total EBITDA decreased its contribution during the quarter, which was mainly explained by higher direct costs. Additionally, the Paper EBITDA also registered a diminution as a consequence of the lower sales and higher costs. Finally, the Paper Products EBITDA increased in two points its contribution to total EBITDA, mainly explained by a shiftment in the fruit export season in Chile which started later.
4Q09 Sales Breakdown by Business Area Paper Products (8%)
1Q10 Sales Breakdown by Business Area Paper Prod. (10%)
Forestry (12%)
Tissue (33%)
Tissue (33%)
Pulp (28%)
Pulp (33%)
Papers (19%)
Papers (16%)
4Q09 EBITDA Breakdown by Business Area
Paper Products (5%)
Forestry (9%)
1Q10 EBITDA Breakdown by Business Area Paper Products Forestry 7% 1%
Forestry (6%) Tissue 17%
Tissue (21%)
.
Papeles 12% Pulp (51%)
Papers (17%)
4
Forestry
Pulp
Celulosa 63%
Papers
Tissue
Paper Products
1Q10
Income Statement Analysis
The Forestry and solid wood business registered a 23% decrease in sales (-US$25 million) during this period when compared to those of 4Q09. Total sale volumes decreased by 18%, whereas average sale price decreased by 6%. During this period, there was a decrement in Sawn wood (-43%), Sawing logs (-19%), Remanufactured wood (-12%) and Plywood volumes (-9%). All the above was offset partially by a 10% increase in Pulpwood volumes. During 1Q10, export volumes delivered to Middle East decreased by 97%, while those exported to China, Europe and the rest of Asia diminished by 53%, 44% and 36% respectively when compared to those of 4Q09. Export volumes delivered to USA decreased 6% only during the same period. All the above was mainly explained by the lower harvest volume registered during the quarter, as well as the negative effects of the earthquake in terms of production and export volumes.
FORESTRY
∆% Sales: -23% ∆% Volumes: -18% ∆% Price: -6%
Pulp sales increased by 22% (+US$57 million) during 1Q10 when compared to those of 4Q09, which was mainly explained by a 17% increase in CMPC’s pulp average effective price. On the other hand, the incorporation of the Celulose Riograndense unit in Brazil offset the lower pulp production volumes registered in Chile. Hardwood volumes increased 17%, while those of Softwood decreased 20%. Average effective price reached CIF 697 US$/ton and CIF 671 US$/ton for Softwood and Hardwood respectively. During this period, the spread between both fibers reached CIF 26 US$/ton.
PULP
∆% Sales: +22% ∆% Volumes: +5% ∆% Price: +17%
Paper business during 1Q10 registered a 15% decrease (-US$26 million) in consolidated sales, when compared to those of 4Q09. This was mainly explained by the lower prices and sale volumes.
PAPERS
A breakdown of the different paper grades in this business shows that Newsprint volumes registered a 35% decrease when compared to those of 4Q09. This was partially offset by a 10% increase in sale prices, following the upward trend registered in foreign markets since January 2010. On the other hand, Boxboard prices decreased 1% when compared with those of 4Q09. Moreover, sale volumes were down by 14%. Finally, Packaging Paper sale volumes decreased 10% compared to those of the previous quarter. Average sale price decreased 7% when compared to that of the previous quarter.
∆% Sales: +-15% ∆% Volumes: -12% ∆% Price: -4% TISSUE
∆% Total Sales: +2% ∆% Volumes: Paper: -1%/Diapers&FCP:+5% ∆% Price: Paper:+3%/Diapers&FCP:-3% PAPER PRODUCTS
Paper products business during 1Q10 registered a 16% increase (+US$12 million) in sales compared to those of 4Q09. This increment is mainly attributable to the seasonality of the fruit export season in Chile. Moreover, it is important to highlight the positive effect of the later fruit maturation due to climate conditions, which benefited 1Q09 sale volumes at the expense of 4Q09 volumes. Because of this, demand for Fruit boxes increased by 63% when compared to that of 4Q09. All the above resulted in a 24% rise in Corrugated boxes volumes when compared to those of the previous quarter. Moreover, molded pulp trays volumes were more than doubled because of the seasonality of the fruit export business. On the other hand, Paper bags volumes fell 7%. Average selling price recorded a drop of 8%, when compared to that of the previous quarter. Finally, during 1Q10 a Paper bag converting plant started operations in Guadalajara, Mexico.
∆% Sales: +16% ∆% Volumes: +26% ∆% Price: -8%
Forestry
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and recently Brazil, showed a 2% increase in sales (+US$4 million) during 1Q10, when compared to those of 4Q09. This was mainly explained by the higher sale price registered in some of the Latin-American markets. On the other hand, volumes of tissue paper products diminished 1%, whereas those of feminine care products increased by 5%. It is important to highlight that Chilean sale volumes registered an increment during the quarter, when compared with those of 4Q09. This was mainly explained by the accumulation of tissue inventories at homes and distribution chanels after the earthquake. Finally, average sale price (measured in US Dollars) increased 3% for Tissue paper; whereas those of Diapers & Feminine care products decreased 3%, when compared to those of 4Q09.
Pulp
Papers
Tissue
Paper Products
5
1Q10
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$604 million, 4% higher than those of 4Q09. This increment is mainly explained by an increase in CMPC’s direct costs, especially those of fiber, freights and energy. At a consolidated level, Operating costs in 1Q10 were 64% of total sales, one point higher than that of 4Q09. Other operating expenses reached US$101 million, 20% lower than that of 4Q09. This was mainly explained by the lower Distribution and Administration costs, in response to the US Dollar appreciation, as well as the lower production and distribution activity due to the Chilean earthquake. This account represented 11% of total sales, three points lower than that recorded in 4Q09. Financial expenses during 1Q10 decreased 2% when compared with those of 4Q09. On the other hand, CMPC’s Financial Income registered a 44% reduction when compared to that of 4Q09, totalling US$1 million. Moreover, during this period there were lower Share results in associated companies. Since October 2009, the relative effects of changes in the fair value of financial instruments including forwards, forwards investments related to synthetic swaps, cross currency swaps and swaps, different from those under hedge accounting, were reclassified from the Exchange rate differences account into the Other gains (losses) items. Based on the foregoing, the appreciation of the dollar against the Chilean peso had positive results during 1Q10, registering a US$2 million gain. Price level restatement is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$2 million loss recorded during the quarter was primarily due to the positive variation of the UF (price inflation), applied to UF debts held by the company. Other gains includes sales of products that are not purely of the company business and other items such as losses not covered by insurance companies, donations, and the relative effects of changes in the fair value of financial instruments including forwards, forwards investments related to synthetic swaps, cross currency swaps and swaps, different from those under hedge accounting, among others. During this quarter there was a US$27 million loss in this account. It is important to highlight that during the quarter there was a US$50 million discount in the "Other Gains (Losses)" account, because of the damage to fixed assets and inventories caused by the earthquake, after deducting an estimated compensation to be received by insurance companies. Income taxes for the period amounted a US$33 million expense, registering a US$73 million increment when compared with that of the previous quarter.
6
Forestry
Pulp
Papers
Tissue
Paper Products
1Q10
Balance Sheet Analysis st
st
As of March 31 2010, Current assets registered a 6% decrease when compared with those as of December 31 , 2009. This was mainly explained by a 13% reduction in the Cash and cash equivalents account, as a consequence of a US$78 million payment to Fibria regarding the Riograndense acquisition in Brazil. On the other hand, Non current assets presented a 1% increase when st compared with those as of December 31 , 2009. st
Current liabilities were down by 10% when compared with those as of December 31 , 2009. This was mainly explained by lower Other financial liabilities, especially those of “Accounts Payable for aquiring subsidiaries”, which recognized at the end of 2009 the outstanding payment of the Riograndense acquisition, which was settled during January. On the other hand, Non current liabilities st presented a 1% decrease when compared with those as of December 31 , 2009. st
CMPC’s financial debt stood at US$2,861 million as of March 31 2010, showing a US$21 million decrease when compared to that as st st of December 31 , 2009. On the other hand, CMPC’s net financial debt reached US$2,200 million as of March 31 2010, registering st an increase of US$80 million when compared to that as of December 31 , 2009. This was mainly explained by a reduction in CMPC's cash level, as a consequence of a US$78 million payment to Fibria regarding the acquisition of the Riograndense unit. Nevertheless, it is important to highlight that CMPC closed the quarter with US$662 million of cash. Besides the increase in CMPC’s Net debt, the Net debt/EBITDA ratio registered a QoQ variation from 3.3 to 3.0 times, mainly explain by the higher EBITDA generation. As of the end of 1Q10, 65% of CMPC´s debt was denominated in USD, 27% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 85% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate.
st
Debt Breakdown as of March 31 , 2010 In Million US$
2Q08
4Q09
1Q10
348 1,599 -56
443 2,509 (71)
443 2,487 (68)
1,892
2,882
2,861
-1%
51%
535
761
662
-13%
24%
Net Debt
1,357
2,120
2,200
4%
62%
Average Cost of Debt
4.8%
4.6%
4.7%
0.1%
-0.1%
(i) Current Interest-bearing Liabilities (ii) Non Current Interest-bearing Liabilities (iii) Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates (1) Total Debt ( (i) + (ii) + (iii) ) Cash and Cash Equivalents
(1)
∆% QoQ ∆% YoY 0% -1% -4%
27% 56% 22%
Information included in Note N°9 of CMPC's Financial Statements: Financial Assets
st
Amortization Schedule as of March 31 , 2010
500 270 139 2010
341
365
2011
266
237
194
153 2012
2013
2014
2015
2019
2027
2030
Shareholders’ Equity presented a US$54 million increase when compared to that of 4Q09. This is mainly due to the higher Retained Earnings registered during the quarter.
Forestry
Pulp
Papers
Tissue
Paper Products
7
1Q10
Relevant Events •
In the morning of February 27th, a violent earthquake with an intensity of 8.8 on the Richter scale struck the area between the regions of Valparaiso and the Araucanía. Following the quake, all CMPC’s Chilean facilities halted their operations, activating their contingency plans. Fortunately, there were not employee misfortunes or structural damages in any of the equipments and mills that CMPC has in the Metropolitana, Maule, Bio Bio and Araucanía regions. Right after the earthquake, technical teams started comprehensive damage evaluations and assessments in all CMPC´s plants and mills located in Chile. The objective was to determine the effects of the earthquake on buildings, plants and equipments to quantify damages and estimated expenditures required for replacement and repairs, in order to resume operational status as quickly as possible. During the quarter, there was recognized a US$50 million charge in the "Other Gains (Losses)" account, because of the estimated damages to fixed assets and inventories caused by the earthquake, after deducting an estimated compensation to be received by insurance companies. The effect of the quake in business interruption is reflected in 1Q10’s financial statements through a lower level of sales, higher costs and a lower margin. Insurance companies compensations of business interruption effects will be determined as soon as the inspection, analysis and adjustment process, already in progress, will be finished. The main damages registered in buildings and equipments were concentrated in the Las Cañas sawmill in Constitución, the Pacífico, Laja, Santa Fe I and Santa Fe II pulp mills, the Inforsa newsprint mill in Nacimiento, the Quilicura corrugating boxes mill, and El Arenal buildings which are located in Talcahuano. Today´s available information, show that the main production losses were 260 thousand tons less pulp production, 25 thousand tons of loss newsprint output, 14 thousand tons less production of boxboard and 5 thousand tons less of corrugating paper production.
8
th
•
Payment of the Guaíba Unit to Fibria: On January 29 , 2010, CMPC paid US$78 million to Fibria for the total acquisition of the ex-Aracruz’ Guaíba unit. The total amounts of payments done by CMPC to Fibria add up to US$1,378 million aprox. The Guaíba assets are located in the city of Guaíba, 30 kilometers away from Porto Alegre, in the state of Rio Grande do Sul. The acquisition includes: (i) land totaling an area of approximately 212,000 hectares of eucalyptus (of which 125,000 hectares are already planted or in plans to be planted); (ii) a nursery capable of producing 30 million plants a year and genetic material developed by Aracruz for this unit; (iii) a pulp mill with an annual production capacity of approximately 450,000 tons of bleached hardwood pulp; (iv) a paper plant, with an annual production capacity of around 60,000 tons; (v) an industrial site, environmental licenses and authorizations for a project to expand the pulp mill, raising its production capacity to around 1.75 million tons a year; (vi) US$89.4 million of working capital; (vii) all assets and services necessary for the proper operation of the property identified. With this acquisition, CMPC’s installed capacity will increase by 23%, exceeding 2.45 million tons of pulp production per year. With this, CMPC will reaffirm its position as one of the most important players in the pulp industry worldwide.
•
CMPC approves the construction of a new tissue paper machine in Peru: CMPC’s board approved the replacement of one of the tissue paper machines at the Santa Anita mill located in Lima, for a new one with a higher production capacity. With this US$15 million investment, CMPC Tissue will reach to aproximally 70 thousand tons of tissue paper capacity in Peru. The start up of this project is estimated for 2Q11.
Forestry
Pulp
Papers
Tissue
Paper Products
1Q10
Consolidated Balance Sheet
2009 1Q09
Figures in Th. US$*
2010
2Q09
3Q09
4Q09
1Q10
1Q10
2Q10
3Q10
4Q10
QoQ
YoY
Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
2,261,127 534,976 647,847 737,341 173,246 65,847 101,870
-
-
2,561,739 761,487 694,044 737,263 169,195 91,242 108,508
2,410,878 661,744 703,626 722,127 157,499 64,329 101,554
-
-
-
Non Current Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
7,782,718 89,283 4,948,937 2,561,814 66,143 116,541
-
-
9,734,577 93,664 201,377 6,053,997 3,054,419 163,239 167,881
9,796,378 92,991 198,736 6,057,860 3,115,910 156,794 174,086
-
-
-
10,043,845
-
-
12,296,316
12,207,256
-
-
-
795,415 352,219 335,021 108,175
-
-
1,184,222 472,973 453,746 257,503
1,065,965 472,208 429,293 164,464
-
-
-
-10%
34%
0%
34%
-5%
28%
-36%
52%
2,684,265 1,658,010 970,997 55,258
-
-
3,854,001 2,516,940 1,088,767 248,294
3,829,768 2,487,931 1,096,927 244,910
-
-
-
-1%
43%
153,567
-
-
157,648
157,508
-
-
-
0%
3%
6,410,598
-
-
7,100,445
7,154,015
-
-
-
1%
12%
10,043,845
-
-
12,296,316
12,207,256
-
-
-
-1%
22%
TOTAL ASSETS Current Liabilities Other Financial Assets Operative Liabilities Other Current Liabilities Non Current Liabilities Interest-Bearing Liabilities Deferred Tax Liabilities Other Non Current Liabilities Minority Interests Shareholders' Equity TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
-6%
7%
-13%
24%
1%
9%
-2%
-2%
-7%
-9%
-29%
-2%
-6%
0%
1%
26%
-1%
4%
-1%
-
0%
22%
2%
22%
-4%
137%
4%
49%
-1%
22%
-1%
50%
1%
13%
-1%
343%
* Balance Sheet numbers are based on CMPC's quarterly financial data, w hich is presented to the "Superintendencia de Valores y Seguros" (SVS) .
Forestry
Pulp
Papers
Tissue
Paper Products
9
1Q10
Consolidated Income Statement
2009 1Q09
Figures in Th. US$
Sales Operating Costs (1)
2Q09
2010 3Q09
4Q09
1Q10
2Q10
2% 4%
34% 23%
0%
60%
0
-20%
45%
914,770 (579,299)
208,851
230,836
282,587
335,471
(69,544)
(100,974)
(118,115)
(125,556)
(101,005)
0
0
EBITDA(3) EBITDA Margin (%)
139,307 20%
129,862 19%
164,472 20%
209,915 23%
232,862 25%
#ยกDIV/0!
#ยกDIV/0!
-
11% 2%
67% 5%
Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
(75,583) 49,105 (32,513)
(78,517) 38,318 (34,315)
(81,551) 38,318 (35,853)
(91,179) 54,815 (26,050)
(96,183) 56,335 (24,263)
0 38,318 (34,315)
0 38,318 (35,853)
0 54,815 (26,050)
5% 3% -7%
27% 93% 0%
4,003
2,465
28,766
14%
110%
-2% -44% -6% 172% -29% -22% -181%
80% -56% 26% -105% -123% 123% -221%
-35%
50%
Operating Income Financial Expenses Financial Income Share Results in Associated Companies Exchange Rate Differences Price Level Restatement Other Gains (Losses) Income Taxes Net Income
-
YoY
819,150 (536,563)
Other Operating Expenses
333,867
80,316
55,348
85,385
147,501
168,750
(18,410) 3,289 2,968 (38,943) 9,372 (12,320) 27,121
(21,905) 2,812 6,805 (41,213) 1,940 (7,207) 31,541
(29,446) 1,968 3,486 17,719 2,702 (734) (17,638)
(33,850) 2,608 3,991 710 (3,061) (35,164) 40,528
(33,135) 1,450 3,750 1,930 (2,172) (27,467) (32,885)
53,393
28,119
63,442
123,263
80,222
-
QoQ
691,295 (460,459)
(2)
-
4Q10
698,394 (489,543)
Operating Margin
937,568 (603,701)
1Q10 3Q10
0
0
-
0 -
0
0
0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
4,003
2,465
28,766
(1) Operating Expenses are calculated as: Costs of Sales minus Stumpage minus Decrease in Biological Assets due to Havest minus Depreciation (2) Other Operating Expenses are calculated as: Distribution Costs plus Administration Expenses plus Other Functional Expenses (3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses
10
Forestry
Pulp
Papers
Tissue
Paper Products
1Q10
Consolidated Cash Flow Statement 2009
2010
As of March
Figures in Th. US
As of March
YoY
89,755
179,015
53,393 (27,121) 65,664 29,571 (2,968) (16,592) 30,838 (29,606) (13,424) 0 0 269,672 0 0 361,840 141,485 503,325 (199,573) (16,213) (17,867) 0 0 (57,343) 0 0 0 0 (57,365) (4,122) 1,360 2,784
80,222 32,885 84,139 242 (3,750) (32,072) 78,923 (48,971) (12,603) 0 0 (44,530) 0 0 0 29,289 29,289 (37,848) (18,775) (17,196) 0 0 (215,501) 0 0 (78,000) 12,818 (165,702) (2,524) 14,954 2,953
50% -221% 28% -99% 26% 93% 156% 65% -6% 0% 0% -117% 0% 0% -100% -79% -94% -81% 16% -4% 0% 0% 276% 0% 0% 189% -39% 1000% 6%
Net Increase (Decrease) in Cash and Cash Equivalents Effects of Changes in Exchange Rates on Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Period
302,084 12,711 220,181
(81,016) (18,727) 761,487
-127% -247% 246%
Cash and Cash Equivalents at the End of the Period
534,976
661,744
24%
Cash Flow from Operating Activities Net Income Income Taxes Expenses Adjustments Depreciation and Amortization Adjustments Unrealized Exchange Losses Minority Interest Adjustments Loss (Gain) from Fair Value Adjustments Other Non Cash Items Ajustments Working Capital Adjustments Income Tax Refund (Payment) Cash Flow from Financing Activities Proceeds from the Issuance of New Shares Proceeds from New Long Term Debt Bonds Issued Payments of Loans Payments of Financial Interests Dividend Payments to Minority Interests Cash Flow from Investment Activities Payments to Acquire Subsidiaries or other Businesses Divestments in Property, Plants and Equipment Investments in Property, Plants and Equipment Derivative Contracts, Options and Swap Payments Derivative Contracts, Options and Swap Charges Received Interests
Forestry
Pulp
Papers
Tissue
Paper Products
99%
11
1Q10
Sale Volumes
Domestic Sales(1)
3
Forestry and Wood Products
(Th. m ssc)
Sawnwood, Remanufactured Wood & Plywood Pulp
(Th. Tons)
Packaging, Printing & Writing Paper, Newsprint and Boxboard (Th. Tons) Boxboard Newsprint Tissue Paper
(Th. Tons)
Paper Products
(Th. Tons) Corrugated Boxes
1Q10 ∆%Q/Q ∆%Y/Y
Total Sales
Exports
1Q09
4Q09
1Q10
1Q09
4Q09
1Q10
1Q09
4Q09
1Q10
512 0 74 0
701 0 62 0
636
120 0 120 0
247 0 247 0
138
632 0 194 0
948 0 308 0
774 0 209 0
3 0 62 12 10 0
17 0 86 15 12 0
24
396 0 107 68 30 0
409 0 129 81 40 0
422
399 0 169 79 40 0
427 0 215 96 52 0
446
-18% 0% -32% 0% 5% 0%
189 82 34
-12% -14% -35% 0%
12% 0% 12% 3% -15% 0%
80 0 72 57
114 0 63 48
112
1 0 5 1
1 0 6 2
0
81 0 78 59
114 0 69 49
113
-1% 0% 26% 29%
40% 0% 12% 8%
70 84 13 9 82 58
138 105 69 25 5 5
87 63
22% 0% 8% 0%
(1) Co nsiders Chile and Fo reign Subsidiaries (2) The CTM P To ns pro duced by M elho ramento s during 3Q09 were reclassified as Pulp
This document provides information about Empresas CMPC SA. In any case this constitutes a comprehensive analysis of the financial, production and sales situation of the company, so to evaluate whether to purchase or sell securities of the company, the investor must conduct its own independent analysis. In compliance with the applicable rules, Empresas CMPC SA. publishes this document on its Web site (www.cmpc.cl) and sends to the Superintendencia de Valores y Seguros, the financial statements of the company and its corresponding notes, which are available for consultation and review.
12
Forestry
Pulp
Papers
Tissue
Paper Products