Empresas CMPC S.A. First Quarter 2011 Results th May 5 , 2011
1Q11
New corrugated box plant in Osorno, Chile – start up April 2011
1Q11 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
“In the 90’s, CMPC began an internationalization process, which has been accelerating during the recent years. 91 years after its establishment, CMPC operates in 8 countries, generating over 14,500 direct jobs, contributing with the development of the communities where the Company operates, satisfying the needs of more than 20,000 direct customers in 50 countries. All the above confirms CMPC’s long term business vision, which is focused on generating value through its traditional seal of innovation and prudence in all its business activities.”
Conference Call th Date: Thursday, May 5 , 4:00 PM Eastern Time 5:00 PM Santiago de Chile’s Time US Toll Free: (+1 866) 800 8648 International Dial: (+1 617) 614 2702 Password: 809 090 57
1Q11
1Q11 in Brief
During the quarter, CMPC registered an increase in its sales and EBITDA, when compared with those reached in the fourth quarter of the previous year. This was mainly explained by higher sale volumes in all business divisions, especially in those of Paper Products and Forestry. Moreover, hardwood volumes also showed an increase due to the start up of the first stage of Santa Fe II's expansion project, which reversed the decrease registered in softwood exports. Pulp prices increased by 3% and 1% for softwood and hardwood respectively. On the other hand, CMPC registered a 5% increment in its EBITDA, when compared to that reached in the fourth quarter of 2010. This was basically explained by an increase in consolidated sales. Nevertheless, this was partially reversed by higher prices of certain raw materials, chemicals and freights, in addition to the negative effect that has being caused by the depreciation of the US dollar over all the costs denominated in local currencies.
•
CMPC’s consolidated sales for 1Q11 reached US$1,242 million, registering an 8% increase when compared to those of 4Q10. During the quarter, there were higher sale prices in all divisions, except from Forestry and Paper Products. On the other hand, sale volumes increased in all business areas.
•
Consolidated EBITDA reached US$317 million during 1Q11, showing a 5% increase when compared to that of 4Q10. This was mainly explained by the higher level of sales, which was partially reversed by higher Operating costs. The EBITDA margin reached 26%, remaining at the same level than the previous quarter.
•
CMPC registered a Net Income of US$143 million during 1Q11; showing a 22% decrement when compared to that of 4Q10. This was mainly explained by the higher Income taxes recorded during the quarter, as well as the lower Other non operational items, especially because during the quarter there were not recognized any insurance compensations from insurance companies due to the earthquake (events that were recorded during 3Q10 and 4Q10).
•
•
CMPC’s net debt as of the end of 1Q11 stood at US$2,158 million, presenting a US$27 million decrease when compared to that as of December 31st, 2010. Total debt stood at US$3,333 million, presenting an approximally US$500 million increment, as a consequence of the issuance of an international bond in January 2011. All the above let CMPC to close the quarter with US$1,176 million of cash* (*defined as: cash and cash equivalents + term deposits within 90 to 360 days of maturity).
CMPC issued a US$500 million international bond in January 2011: Inversiones CMPC S.A. with the guaranty of Empresas CMPC S.A. issued a US$500 million international bond under the 144A-S regulation of the United States Securities Act. This bullet bond has a maturity term of 7 years, and an effective rate of 4.83%.
Key Figures
2
US$ Million
1Q10
4Q10
1Q11
∆%Q/Q
∆%Y/Y
FY 2010
FY 2011
∆%Y/Y
Sales EBITDA EBITDA Margin Net Income
938 233 25% 80
1,150 302 26% 182
1,242 317 26% 143
8% 5% -1% -22%
32% 36% 1% 78%
938 233 25% 80
1,242 317 26% 143
32% 36% 1% 78%
CAPEX
244
160
166
4%
-32%
244
166
-32%
Total Assets Net Debt Market Capitalization
12,207 2,173 9,283
12,876 2,185 11,699
13,567 2,158 10,692
5% -1% -9%
11% -1% 15%
12,207 2,173 9,283
13,567 2,158 10,692
11% -1% 15%
Closing Exchange Rate Average Exchange Rate
524.46 525.13
468.01 481.53
479.46 479.60
2% 0%
-9% -9%
524.46 525.13
479.46 479.60
-9% -9%
Forestry
Pulp
Papers
Tissue
Paper Products
1Q11
Income Statement Analysis
Total revenues reached US$1,242 million during the quarter, an 8% higher when compared to those of 4Q10. During the quarter, there were higher sale prices in all business areas, except from Forestry, Paper Products and Pulp (when considering P&W sales). The Tissue business showed a rise in prices (measured in US dollars), mainly explained by the appreciation of local currencies. On the other hand, sale volumes increased in all business divisions. Forestry volumes were positively affected by the higher construction activity registered in the northern hemisphere, as well as the superior productivity reached in the handling of wood. Pulp volumes were up due to the higher hardwood exports, where in the Paper Products division, volumes increased due to the seasonality of the fruit export business in Chile. Finally, the additional tissue volumes were mainly explained by the advance in the learning curve of the Mexican and Colombian new machines, as well as the superior sanitary products sale volumes.
Sales Breakdown Analysis to Third Parties
Total Revenues Evolution 1,242
1,150 938
1Q10
4Q10
1Q11
CMPC’s consolidated EBITDA reached US$317 million, 5% higher than 4Q10’s EBITDA. This growth is mainly explained by the higher EBITDA of the Pulp, Paper Products and Tissue divisions. Nevertheless, this was partly offset by a decrease in the EBITDA of the Forestry and Paper businesses.
EBITDA Evolution
EBITDA Variation by Business
317
302 233
1Q10
4Q10
1Q11
Net Income during the quarter reached US$143 million, a 22% inferior than that of 4Q10. This decrease was mainly explained by the three points rise in the Chilean tax rate, as well as the exchange rate effects in Income Taxes registered during the quarter. In addition, there were lower Other non operational items, especially because during the quarter there were not recognized any insurance compensations from insurance companies due to the earthquake (events that were recorded during 3Q10 and 4Q10). All the above could not be reversed by the higher EBITDA generation, the superior Net biological assets income, as well as the higher FX differences and Indexation unit results recorded during the quarter.
Net Income Analysis
Net Income Evolution
182 143
80
1Q10
Forestry
4Q10
Pulp
1Q11
Papers
Tissue
Paper Products
33
1Q11
Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL
A breakdown of CMPC’s sales to third parties by destination during 1Q11 shows that 50% of the sales correspond to exports, 25% to the domestic market in Chile and 25% to domestic markets of foreign subsidiaries. It is important to highlight that foreign subsidiaries sales have been increasing its participation in total sales during the last quarters. This is mainly explained by the strong internationalization process undertaken by the Company through Latinamerica.
CMPC’s sales breakdown to third parties by business for 1Q11 shows that the Pulp and Tissue businesses contributed with 34% and 30% of total revenues, followed by Paper contributing with 16% of total sales. Finally, the Forestry and Paper Products divisions represented 10% of total revenues each. It is important to note that this is the third consecutive quarter were Pulp sales exceed those of Tissue. This had not happened since 2Q08. CMPC’s EBITDA breakdown by business for 1Q11 shows that the Pulp, Tissue and Paper Products divisions increased their EBITDA when compared to that of the previous quarter. This was mainly explained by an increase in its sales, in response to the higher volumes achieved in the quarter. On the other hand, the Forestry and Paper businesses showed a decrement on its EBITDA during the first quarter of the year. In the Forestry case, the decrement was mainly explained by the higher harvesting and freight costs as a consequence of the superior prices reached by oil. Paper’s total EBITDA decreased during 1Q11 due to higher raw materials costs, especially those of pulp and recycled paper.
4Q10 Sales Breakdown by Business Area Paper Prod. 8%
1Q11 Sales Breakdown by Business Area Paper Prod. 10%
Forestry 9%
Tissue 31%
Tissue 30%
Pulp 35%
Pulp 34%
Papers 16%
Papers 17%
4Q10 EBITDA Breakdown by Business Area
Tissue 13%
.
Paper Prod. 3%
1Q11 EBITDA Breakdown by Business Area
Forestry 9%
Tissue 12%
Papers 16%
Forestry
Paper Prod. 5%
Forestry 8%
Papers 15%
Pulp 59%
4
Forestry 10%
Pulp
Pulp 60%
Papers
Tissue
Paper Products
1Q11
Income Statement Analysis
The Forestry and solid wood business registered a 14% increase in sales (+US$15 million) during this period when compared to those of 4Q10, driven by a 21% increase in sale volumes. This was mainly explained by the end of a seasonality effect due to the northern hemisphere winter, a better demand from China, as well as a higher productivity strategy undertaken in sawmills, remanufacturing and plywood mills. All the above explained the increase in the volumes sold of pulpwood (+20%), sawnwood (+19%), plywood (+15%), sawing logs (+12%) and remanufactured wood (+8%). Average sale price registered a 6% decrement when compared to that of 4Q10.
FORESTRY
∆% Sales: +14% ∆% Volumes: +21% ∆% Price: -6%
Pulp sales increased by 5% (+US$20 million) during 1Q11 when compared to those of 4Q10. This was mainly explained by a 13% increase in hardwood volumes, due to the start up of the first stage of the Santa Fe II mill expansion project, which added 160 th. tons of additional capacity per year. This was slightly offset by a 9% reduction in softwood volumes. It is important to highlight that during the quarter export volumes destinated to China of both hardwood and softwood increased by 5% and 21% respectively. On the other hand, pulp average effective price (including the sales of P&W integrated papers) registered a 0.2% reduction. Average effective price reached CIF 829 US$/ton and CIF 741 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached CIF 88 US$/ton.
PULP
∆% Sales: +5% ∆% Volumes: +5% ∆% Price: -0.2%
Paper business during 1Q11 registered a 5% increase (+US$10 million) in consolidated sales, when compared to those of 4Q10.
PAPERS
A breakdown of the different paper grades in this business shows that newsprint volumes registered a 4% decrease when compared to those of 4Q10. However, prices remained stable, following the trend registered in foreign markets during the last months. On the other hand, boxboard prices increased 2% when compared with those of 4Q10, mainly driven from the higher demand coming from certain markets such as Brazil. Moreover, sale volumes were up by 2%. Finally, packaging paper sale volumes increased by 30% compared to those of the previous quarter, due to the proper seasonality of the fruit boxes production, as well as the higher industrial activity. However, there was a 6% decrement in sale prices.
∆% Sales: +5% ∆% Volumes: +4% ∆% Price: +1% TISSUE
∆% Total Sales: +6% ∆% Volumes: Paper:+2%/Diapers&FCP:+11% ∆% Price: Paper: +4%/Diapers&FCP:-6%
Paper products business during 1Q11 registered a 26% increase (+US$25 million) in sales compared to those of 4Q10. This increment is mainly attributable to the proper seasonality of the fruit export season in Chile, which meant an increased demand for fruit boxes during the quarter. Moreover, it is important to highlight the effect of the later fruit maturation due to climate conditions, which benefited 1Q11 sale volumes at the expense of 4Q10 volumes. Because of this, demand for fruit boxes increased by 77% when compared to that of 4Q10. All the above resulted in a 30% rise in corrugated boxes volumes when compared to those of the previous quarter. Moreover, molded pulp trays volumes almost tripled because of the seasonality of the fruit export business. On the other hand, paper bags volumes fell 4%. Average selling price recorded a drop of 1%, when compared to that of the previous quarter.
PAPER PRODUCTS
∆% Sales: +26% ∆% Volumes: +27% ∆% Price: -1%
Forestry
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, registered a 6% increase in its sales (+US$22 million) during 1Q11, when compared to those of 4Q10. Tissue paper volumes showed a 2% increment mainly due to the advance in the learning curve of the Colombian and Mexican expansion projects. Moreover, sanitary products increased their volumes in 11% due to the growth strategy undertaken by the Company for this category at a regional level. For example, this is the case of Melhoramentos in Brazil, which started to sell sanitary products since 2H10. Finally, average sale price (measured in US Dollars) decreased 6% in the case of diapers & feminine care products; whereas those of tissue paper increased by 4% when compared to those of 4Q10. The latter was mainly explained by local currencies appreciation, which benefited tissue prices when measured in US Dollars.
Pulp
Papers
Tissue
Paper Products
5
1Q11
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$787 million, 11% higher than those of 4Q10. At a consolidated level, Operating costs in 1Q11 were 63% of total sales, two points higher than that of 4Q10. Other operating expenses reached US$138 million, 4% lower than that of 4Q10. This was mainly explained by the decrease in Administration costs and Other operational expenses. This account represented 11% of total sales, one point lower than that of 4Q10. Financial expenses increased 11% during 1Q11 when compared with those of 4Q10, which was attributable to the higher level of debt. On the other hand, CMPC’s Financial Income registered a 20% increment when compared to that of 4Q10, mainly explained by the higher amount of cash handled by the Company. Moreover, during this period there were lower Share results in associated companies, amounting US$4 million. Regarding Foreign Exchange differences, the appreciation of the closing dollar against the Chilean peso had positive results during 1Q11, registering a US$30 million gain. This income has an opposite effect in Deferred tax, due to the fact that CMPC’s Chilean subsidiaries have their tax accounting in Chilean pesos. Indexation Unit Results is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$4 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 (losses) 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, a US$24 million loss was recognized under this account. Income taxes for the period implied a US$63 million expense, registering an US$50 million decrement when compared with that of the previous quarter.
6
Forestry
Pulp
Papers
Tissue
Paper Products
1Q11
Balance Sheet Analysis st
st
As of March 31 2011, Current assets registered a 19% increase when compared with those as of December 31 , 2010. It is important to note that the Cash and cash equivalents account showed a 15% decrement, as a consequence of the higher investment in term deposits within 90 to 360 days of maturity, which are recognized under the Other financial assets account. Cash resulted benefitted from the higher operational cash flow, as well as from the issuance of a US$500 million international bond. On the other st hand, Non current assets increased 1% when compared to those as of December 31 , 2010. st
Current liabilities were up by 5% when compared with those as of December 31 , 2010. On the other hand, Non current liabilities st presented a 14% increase when compared with those as of December 31 , 2010, due to the issuance of the international bond mentioned above. st
CMPC’s financial debt stood at US$3,333 million as of March 31 2011, showing almost a US$500 million increment when compared st to that as of December 31 , 2010. This was mainly explained by the US$500 million loan issuance mentioned earlier. On the other st hand, CMPC’s net financial debt reached US$2,158 million as of March 31 2011, registering a reduction of US$27 million when st compared to that as of December 31 , 2010. It is important to highlight that CMPC closed the quarter with US$1,176 million of cash. On the other hand, the Net financial debt/EBITDA ratio registered a QoQ variation from 1.9 to 1.8 times, mainly explained by the higher EBITDA generation. Moreover, the financial coverage ratio also showed a favorable financial evolution during the quarter, when compared to that observed in 4Q10. However, the Financial debt / Tangible net worth ratio showed an increase from 0.37 to 0.44 times, as a consequence of the US$500 million loan issuance mentioned earlier. As of the end of 1Q11, 75% of CMPC’s debt was denominated in US$, 19% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 79% 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 , 2011 (i) (ii) (iii) (i) (ii) (iii)
In Million US$
1Q10
4Q10
1Q11
Current Interest-bearing Liabilities Non Current Interest-bearing Liabilities Other Obligations Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates Net Hedging Current Liabilities Net Hedging Non Current Liabilities
443 2,487 (44) (42) (4) (5)
468 2,516 (53) (86) (4) (7)
464 3,000 (52) (76) (0) (1)
-1% 19% -1% -11% -100% -80%
5% 21% 18% 81% -100% -73%
Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )
2,834
2,834
3,333
18%
18%
Cash*
∆% QoQ ∆% YoY
661
650
1,176
81%
78%
Net Debt
2,173
2,185
2,158
-1%
-1%
Average Cost of Debt
4.7%
4.4%
4.4%
0.0%
-0.3%
*Cash and cash equivalents + Term deposits w ithin 90 to 360 days of maturity
st
Amortization Schedule as of March 31 , 2011
498 377
372
340
2013
2014
2015
288
497
Financial Ratios Evolution
488
179 43 2011
2012
2016
2018
2019 Thereafter
Shareholders’ Equity presented a US$123 million increase when compared to that of 4Q10. This is mainly due to the higher Retained Earnings registered during the quarter, as well as the superior Other reserves. Forestry
Pulp
Papers
Tissue
Paper Products
7
1Q11
Relevant Events
8
•
A new corrugated boxes plant started operations in Osorno, Chile: in April, CMPC’s fourth corrugated boxes plant started its productive operations. This facility, which implied a total investment of US$24 million, has a total production capacity of 35 thousand tons of boxes per year. This plant will be focused in supplying corrugated boxes to the salmon, milk, berries and other local Chilean companies. As a result, CMPC’s corrugating capacity will reach more than 290 thousand tons per year.
•
CMPC issued a US$500 million International benchmark bond: on January 13 , 2011, Inversiones CMPC S.A. issued a US$500 million international benchmark bond under the 144A-S regulation of the United States Securities Act. The transaction was under the guaranty of Empresas CMPC, acting through its Cayman Island Agency. This bullet bond has a maturity term of 7 years, with semiannual interest payments. Issue effective rate was 4.83%, which was equivalent to CT7 + 220 Bps of spread. The funds should be used for general corporate purposes. JPMorgan, Citi/Banchile and Itaú acted as joint book-running managers.
•
On January 6 , 2011, the Board of Directors appointed Mr. Hernán Rodríguez (47) as the new Corporate Chief th Executive Officer of Empresas CMPC, effective April 29 , 2011: CMPC’s current CEO, Mr. Arturo Mackenna (64), will continue to serve on the board of directors of Empresas CMPC, as well as in the board of its subsidiaries CMPC Tissue and CMPC Pulp. Mr. Hernán Rodriguez graduated as industrial engineer at the Pontificia Universidad Católica de Chile and received an MBA from the University of California, Los Angeles (UCLA). He joined CMPC in 1987, serving in several positions such as Deputy Chief Financial Officer, Chief Financial Officer and Chief Executive Officer of CMPC Forestry, among other functions.
•
A CLP$200 (US$0.43) cash dividend was announced: CMPC’s board approved in April a CLP$200 dividend to be paid on th each outstanding share. This dividend will be distributed on May 11 , 2011.
•
Empresas CMPC modifies its dividend policy for 2011: CMPC’s shareholders’ meeting celebrated on April 29 , 2011, approved unanimously a raise in the dividend policy for year 2011 from 30% to 40% of CMPC’s net distributable income.
•
Empresas CMPC appointed a new board of directors: CMPC’s shareholders’ meeting celebrated on April 29 , 2011, approved unanimously the appointment of a new board chaired by Mr. Eliodoro Matte, and integrated by other six directors, Messrs. Martín Costabal, Erwin Hahn, Jorge Gabriel Larraín, Arturo Mackenna, Bernardo Matte and Jorge Marín.
•
CMPC’s board of directors proposed a merger between Empresas CMPC and its subsidiary Inforsa: on March 4 , 2011, CMPC’s board of directors proposed the merger by absorption between Empresas CMPC and its subsidiary Inforsa, with the purpose of consolidating the operational integration between both firms. In addition, is it important to note that having Inforsa as a separate entity, trading its shares in the Santiago Stock Exchange, generates several transaction costs which does not have correlative value neither for the company nor for its shareholders, particularly considering the fact the Inforsa has not and do not have the intention to issue new equity nor public debt. The transaction will be executed through a stock split in CMPC’s shares from 1 existing share into 10 new shares. As a result, CMPC will have outstanding 2,200 million of shares, from the 220 million of shares that maintains today. Following the split, CMPC will issue 26,773,533 new shares to be exchanged by Inforsa’s minority shareholders stocks. The exchange will be executed at a ratio of 15 shares of Inforsa per 1 new share of CMPC. th Empresas CMPC’s extraordinary shareholders’ meeting celebrated on April 29 , 2011 approved the merger and other related proposals. th Inforsa’s extraordinary shareholders’ meeting celebrated on April 29 , 2011 also approved the merger. If the transaction is not revoked by a new extraordinary shareholders’ meeting, the merger and all the changes mentioned th above will be implemented on October 30 , 2011.
th
th
th
th
th
Forestry
Pulp
Papers
Tissue
Paper Products
1Q11
Consolidated Balance Sheet
2010 1Q10
Figures in Th. US$*
2Q10
2011 3Q10
4Q10
1Q11
Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
2,410,879 631,495 703,626 722,127 157,499 64,329 131,803
2,546,913 565,451 793,189 790,956 177,037 89,326 130,954
2,926,057 641,364 894,398 883,862 198,072 113,883 194,478
3,027,727 364,529 920,779 958,477 219,169 138,873 425,900
3,611,484 309,379 1,010,359 937,909 221,405 145,891 986,541
Non Current Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
9,796,378 92,991 198,736 6,057,860 3,115,910 156,794 174,087
9,775,173 95,765 222,139 6,065,060 3,091,345 114,934 185,930
9,806,466 124,388 140,702 6,132,445 3,085,314 134,745 188,872
9,848,729 11,712 164,866 6,204,558 3,142,319 136,663 188,611
9,955,125 10,991 166,476 6,279,916 3,178,917 134,733 184,092
TOTAL ASSETS
2Q11
1Q11 3Q11
4Q11
QoQ
YoY
19%
50%
-15%
-51%
10%
44%
-2%
30%
1%
41%
5%
127%
132%
648%
1%
2%
-6%
-88%
1%
-
1%
4%
1%
2%
-1%
-14%
-2%
6%
12,207,257
12,322,086
12,732,523
12,876,456
13,566,609
5%
11%
Current Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities
1,065,964 472,208 429,293 164,463
1,214,397 487,455 502,444 224,498
1,311,004 513,857 571,905 225,242
1,320,951 501,376 583,723 235,852
1,382,564 499,635 591,878 291,051
5%
30%
Non Current Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities
3,829,770 2,487,931 1,096,927 244,912
3,726,105 2,395,293 1,092,689 238,123
3,758,762 2,533,938 949,857 274,967
3,733,774 2,516,437 934,315 283,022
4,238,561 3,001,426 952,281 284,854
157,508
158,321
159,649
156,321
156,975
7,154,015
7,223,263
7,503,108
7,665,410
12,207,257
12,322,086
12,732,523
12,876,456
Non Controlling Participations Equity Attributable to the Owners of the Controller TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
0%
6%
1%
38%
23%
77%
14%
11%
19%
21%
2%
-13%
1%
16%
0%
0%
7,788,509
2%
9%
13,566,609
5%
11%
* 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
1Q11
Consolidated Income Statement
2010 1Q10
Figures in Th. US$
Sales Operating Costs (1)
2Q10
2011 3Q10
4Q10
937,568 1,006,624 1,124,584 1,150,396 (603,701) (595,643) (666,884) (705,812)
Operating Margin
1Q11 1,241,629 (786,736)
2Q11
1Q11 3Q11
4Q11
QoQ
YoY
8% 11%
32% 30%
333,867
410,981
457,700
444,583
454,893
2%
36%
(101,005)
(130,024)
(135,284)
(143,041)
(137,841)
-4%
36%
EBITDA(3) EBITDA Margin (%)
232,862 25%
280,957 28%
322,416 29%
301,543 26%
317,052 26%
5% -1%
36% 1%
Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
(96,183) 56,335 (24,263)
(96,151) 72,061 (50,895)
(88,092) 63,360 (46,473)
(106,300) 38,605 (49,356)
(100,644) 57,481 (44,428)
-5% 49% -10%
5% 2% 83%
Operating Income
168,750
205,973
251,211
184,492
229,461
24%
36%
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes
(33,135) 1,450 3,750 1,930 (2,172) (27,467) (32,885)
(32,674) 1,936 2,244 5,894 (7,832) (1,535) (50,881)
(34,383) 4,254 6,449 (21,843) (5,660) 32,656 21,685
(34,480) 6,440 5,037 (10,308) (4,920) 49,338 (13,294)
(38,107) 7,734 3,546 30,496 (3,526) (23,659) (63,323)
11% 20% -30% -396% -28% -148% 376%
15% 433% -5% 1480% 62% -14% 93%
80,222
123,126
254,370
182,304
142,622
-22%
78%
Other Operating Expenses (2)
Net Income
(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
1Q11
Consolidated Cash Flow Statement
2010 1T10
Figures in Th. US
Cash Flow from Operating Activities
2T10
2011 3T10
4T10
179,015 0 0 80,222 32,885 84,139 0 242 (32,072) (3,750) 78,923 (48,971) (12,603) 0 0 (215,501) 0
177,622 0 0 123,126 50,881 84,229 12,465 1,937 (127,848) (2,244) 139,340 (109,283) 5,019 0
199,608
233,064
254,370 (21,686) 73,370 4,942 27,503 (45,066) (6,449) 41,380 (111,669) (17,087)
182,304 13,294 83,083 10,240 15,228 (43,249) (17,480) 39,629 (44,701) (5,284)
(137,216) 0
(172,082)
(375,641)
(78,000) 12,818 (165,702) 0 12,430 0 2,953 0 0 (44,530) 0 0 0 29,289 29,289 (37,848) (18,775) (17,196) 0
0 95 (66,516) (54,936) 8,491 5,408 1,496 (31,254) 0 (119,071) 0 0 0 69,935 69,935 (113,982) (32,551) (34,416) (8,057)
0 (7,889) (95,884) (34,887) (10,315) 0 8,378 (31,485)
(2,192) 2,870 (131,416) (26,153) (15,702) 1,529 (1,214) (203,363)
(2,437)
(140,161)
0 258,750 258,750 (201,198) (35,311) (32,735) 8,057
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
(81,016) (18,727) 735,736
(78,665) (17,629) 635,993
Cash and Cash Equivalents at the End of the Period Term deposits within 90 to 360 days of maturity
635,993 25,238
539,700 25,751
Net Income Income Taxes Adjustments Depreciation and Amortization Adjustments Provisions Adjustments Unrealized Exchange Losses Loss (Gain) from Fair Value Adjustments Adjustments for Undistributed Profits of Associates Other Non Cash Items Ajustments Working Capital Adjustments Income Tax Refund (Payment) Cash Flow from Investment Activities Payments to Acquire Subsidiaries or other Businesses Divestments in Property, Plants and Equipment Investments in Property, Plants and Equipment Investments in Other Long Term Assets Derivative Contracts, Options and Swap Charges Dividends Received Interests Received Other Entries (Egresses) of Cash Cash Flow from Financing Activities Proceeds form the Issuance of Short Term Debt Proceeds form the Issuance of Long Term Debt Total Proceeds form the Issuance of Debt Payments of Loans Dividends Paid Interest Paid Other Entries (Egresses) of Cash
Cash at the End of the Period
Forestry
661,231
Pulp
Papers
565,451
1T11
2T11
1Q11 3T11
4T11
231,245 0 0 142,622 63,322 81,932 7,498 (26,970) (41,388) 0 102,764 (83,585) (14,950) 0 61 (726,323) 0
ToT
AoA
-1%
29%
-22% 376% -1% -27% -277% -4% -100% 159% 87% 183%
78% 93% -3% -11245% 29% -100% 30% 71% 19%
93%
237%
-100% -91% 10% -16% -136% -100% -705% 182%
-100% -98% -13% -55% 149% -
-421%
-1109%
158,709 58,819 217,528 (277,064) (56,332) (24,293) 0
0 255 (144,244) (21,881) 5,640 0 7,346 (573,439) 0 449,372 0 0 495,078 128,699 623,777 (140,031) (50) (34,385) 61
212% 119% 187% -49% -100% 42% -
339% 2030% 270% -100% 100% -
25,090 50,824 539,700
(282,739) 31,655 615,613
(45,706) (9,444) 364,529
-84% -130% -41%
-44% -50% -50%
615,613 60,043
364,529 285,396
309,379 866,248
-15% 204%
-51% 3332%
1,175,627
81%
78%
675,656
649,925
Tissue
Paper Products
11
1Q11
Sale Volumes
Domestic Sales(1)
3
Forestry and Wood Products
(Th. m ssc)
Sawnwood, Remanufactured Wood & Plywood Pulp
Exports
1Q11 ∆%Q/Q ∆%Y/Y
Total Sales
1Q10
4Q10
1Q11
1Q10
4Q10
1Q11
1Q10
4Q10
1Q11
636
612
742
138
196
232
974
21%
26%
59
65
138
196
232
774 0 209 0
808
70
254
297
17%
42%
(Th. Tons)
24
31
29
422
475
504
446
506
533
5%
20%
Packaging, Printing & Writing Paper, Newsprint and Boxboard (Th. Tons) Boxboard Newsprint
84 13 9
87 16 11
85 16 9
105 69 25
130 82 39
141 84 39
189 82 34
217 98 50
226 100 47
4% 2% -4%
20% 23% 41%
Tissue Paper
(Th. Tons)
112
119
122
0
0
0
113
120
122
2%
9%
Paper Products
(Th. Tons)
82 58
68 50
87 65
5 5
4 2
5 3
87 63
73 52
93 68
27% 30%
6% 7%
Corrugated Boxes (1) Co nsiders Chile and Fo reign Subsidiaries (2) The CTM P To ns pro duced by M elho ramento s 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